DERBY, UK, February 19, 2021 -- EuroSite Power Inc. (OTCPK: EUSP, the "Company") an On-Site Utility solutions provider, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and leisure centers in the United Kingdom (UK) and Europe, today provided a trading update including detail of how the ongoing global COVID pandemic is affecting its business.

“2020 was a challenging year for many businesses but in many respects, it showed the value of our recurring revenue business model” explained Paul Hamblyn, Chief Operating Officer and Managing Director. “Although government restrictions meant the closure of many of our customers’ sites these sites still needed energy and so we were able to keep generating, albeit at a reduced output throughout the year. We were also able to continue construction activities, so we also grew our fleet in 2020”.

Chief Executive Officer, Dr Elias Samaras added “While we will not be publishing our 2020 results until the end of March I can tell investors that revenue was damaged by the pandemic, but despite this the UK company maintained a positive EBITDA throughout the year and also made a profit in six months of the year. In addition, through careful management of cash we ended the year with more cash in the bank than we had when the UK first locked down in March”.  

With UK government restrictions being reimposed early in January most hotels and all indoor fitness studios, gyms, swimming pools, spas and other indoor leisure centers together with outdoor leisure activities such as golf were forced to close. As a result, the Company confirmed that 24 of its 46 generation assets are now switched off however, the impact to day-to-day energy generation is currently limited to a reduction of around 30% due to the larger generation capacity of those units still able to operate and the effect of the colder winter weather. Daily electricity generation is currently averaging close to 40,000 kWh although the Company expects this to reduce should the current restrictions continue into the warmer spring months.

New business development, particularly within the Company’s traditional hospitality, sports and leisure sectors was severely affected by COVID. Many projects in the pre lockdown pipeline failed to materialise as expected but there are signs that activity is now beginning to remerge within these sectors. In response to this downturn management refocused sales effort both on new sectors and an expanded offer including funded solar PV solutions and high efficiency chillers. It also took the decision to reduce staffing in the sales team; staff numbers will be increased once more when restrictions are eased and new business activity levels increase. In the meantime, the UK directors are spearheading sales activity.

The Company’s also reports that project backlog was substantially reduced over the past few months with new systems becoming operational at four Club Company sites, the Brentwood Centre and at the Ricoh Arena, Coventry. These new systems added 735kW capacity to the fleet, further increasing the recuring revenue potential for 2021.

Elsewhere the Company was also able to identify a range of energy and carbon savings projects as part of its CHP Management Contract with Coca-Cola HBC Northern Ireland. In time the Company expects to receive orders to implement the projects identified and is also working with its customer to extend the scope of its current contract to other sites across Europe and elsewhere.   

Management took advantage of all available government support including flexibly furloughing some staff using the Coronavirus Job Retention Scheme while claiming various one-off business grants. The Company also opted to take a low interest £100,000 ($139,000) government backed loan, the first year of which incurs no interest with repayments beginning in November 2021.

The Company plans to announce its 2020 financial results later in March and will issue a press release confirming the exact date and time of this announcement in due course.

About EuroSite Power

The Company provides institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by conventional energy suppliers – without any capital or start-up costs to the energy user. More information can be found at www.eurositepower.co.uk.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company’s website and in financial statements held by OTC markets for the fiscal year ended December 31, 2019. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.