Proton Power surges on sales rebound and corporate restructure

Hydrogen fuel cells maker Proton Power has impressed investors with news of strong current trading, plans to restructure the business into three divisions and for a boardroom reshuffle.

AIM-quoted Proton, whose shares shot up 91% to their highest in a year, forecast revenue for calendar 2016 will show "significant growth of approximately 250%" from the £0.7m generated last year.

The group will be segmented into three trading units: Stationary, which will focus on emergency back-up power cells or the containerized fuel cells recently provided to the Orkney 'Surf and Turf' project; Mobile business focusing on hybrid systems for vehicles; and Maritime, such as the contract to supply a tourist ship in Hamburg.

Chief executive Faiz Francoise Nahab, who waved goodbye to longstanding business development director Thomas Meltzer, while finance director Achim Loecher stepped back with immediate effect to take a non-executive role, said creating three business units will enable each to focus on their specific market demands, which he expects to help improve shareholder value.

The refining of the business model reflects management's confidence that the need to offer a broader portfolio of products in fuel cell and hybrid power has achieved its initial aim, but the feeling is that the group's increased in size and investments in product development and manufacturing capabilities calls for a new approach as the stature and scale of customers has stepped up.

Proton said the proposed reorganisation would drive increased selling opportunities, whilst keeping overheads down thanks to the shared service infrastructure.

"Proton will provide year on year revenue streams as commercialization of our core technology is now realised," said Nahab. "Our continued investment in our manufacturing capability is now bearing fruits. The board sees proof that the fuel cell technology is commercially attractive to customers resulting in projects which will provide years of revenues for Proton."