Half-year Financial Report

Powerhouse Energy Group PLC

21 September 2026

 

21 September 2026

Powerhouse Energy Group plc

("Powerhouse", “PHE”, the “Group” or the "Company")

Half Year Report for the six months ended 30 June 2026

Powerhouse Energy Group plc (AIM: PHE), the UK technology company pioneering integrated technology that converts non-recyclable waste into low carbon energy together with a revenue generating engineering consulting division (Engsolve), is pleased to announce its unaudited half year report for the six months ended 30 June 2026.

Highlights

Corporate

• Business strategy remains focused on licensing fees, royalties and engineering services revenues which now includes providing third party testing of waste streams at the Powerhouse Technology Centre
• Powerhouse maintains the intention to raise project finance, in respect of its Ballymena project, however this approach remains an exception and is due to the Company’s favourable assessment of the project’s commercial risk.
  • Powerhouse has opportunities for project funding and Ballymena has the necessary commercial criteria, feedstock supply, local authority support etc to allow the Company to seek such funding that will provide greater project control and allow the project to be delivered in a more favourable timescale for the business.

Commercial Development

• A five year framework agreement has been signed with National Hydrogen (NH2) now under a new SPV, National Waste 2 Energy (NW2E).  Projects are based on licensing and royalties covering projects in Australia, Italy, Switzerland and Hong Kong where Powerhouse will support on project by project exclusivity basis.
• Ballymena, remains a key project following the Design Build Operate/sell model and continues to progress well. The site was secured earlier in the year and planning permission submitted soon after, the outcome of which is still pending. Discussions for feedstock supply and hydrogen offtake, as well as wider funding, are ongoing.
• Strong 2026 H1 performance from Engsolve with orders in line with expectations as well as new contracts in water and lithium processing.
• Continuing to work with Altec Energy, in Thailand, with PHE providing support in the form of time to enable Altec to deliver its strategy and develop early-stage enquiries.
• A significant number of qualified leads continue to be followed up after the successful launch of the Company’s Feedstock Testing Unit (“FTU”), with a number of client visits completed as well as successful tests on client waste undertaken.
• The Company continues to investigate grant funding as a way of reducing the time to commercialisation and is in the process of submitting appropriate applications.
• Collaboration HORIZON grant work with Brunel University. 75% of the Grant funding has been received,  of which PHE has received £146,884.
• A no win no fee agent agreement has been signed up with the CSE Partnership Ltd, which is focussing on the Caribbean, Europe and the Middle East.
• The Company has granted a non-exclusive licence to Hydrogen Utopia International (“HUI”).  This licence will enable HUI to promote the Company's Distributed Modular Generation ("DMG") technology across selected European markets.

Technology and Innovation

• FTU continues to successfully verify numerous waste streams, including specific wastes from interested parties.  
• Continued testing and optimisation has shown potential efficiency improvements of the Syngas burner system for optimum temperature control in the full size commercial units. With optimisation of the feed system also being undertaken.
• Further optimisation has also been achieved from learnings on running the FTU, which is expected to improve the efficiency and commerciality of the Company’s DMG offering.
• PHE patents have now been granted in 12 multiple geographic regions including, Australia, Europe, USA and Asia with further applications pending.

Financial Performance

• Revenues for the half year of £437.1k (H1 2025: £474.9k) – with third party works completed by PHE enabling PHE to record first revenues of £379.1k
• Gross Profit for period £199.9k (H1 2025: £166.2k).
• £1.42m cash at bank at 30 June 2026 (30 June 2025: £1.47m).

The Group’s revenues for the half year ended 30 June 2026 increased compared to the previous year’s figures due to the additional sales orders Engsolve received in the first half of 2025 and the third party work being undertaken by PHE.

Fundraise

• During the period the Company raised £1.3m, via two fundraises, to fund ongoing costs and project work for NW2E and Ballymena.

Outlook

• Acceleration of the development of commercial applications for PHE’s technology through site visits and providing waste testing.
• Further innovation and product offerings are being developed – with a growing interest in the 2.5TPD units from various sources.
• PHE Team are being continuously recognised as experts in thermal processing and have a number of enquiries to provide services.
• Increasing online presence and marketing activity to further build awareness of Engsolve.

Statement from David Hitchcock, Interim Executive Chairman of Powerhouse Energy Group Plc

“PHE started 2026 with great momentum. During the period the Company, through its focused business strategy, has continued to progress with our prioritised projects with National Hydrogen Australia and at Ballymena; delivering key project milestones. We were also very pleased to see that this momentum enabled us to record our first revenues into PHE through the provision of third party services.  The Engsolve team has also been extremely active delivering a very strong order book in H1 which continues to contribute greatly to the Group, bringing new revenue streams into the Company whilst continuing to provide support to PHE and its strategy.

We are also very pleased to be able to report that our pipeline of potential opportunities continues to grow as we further increase awareness of our technology and its capabilities whilst utilising the fully functional Feedstock Testing Unit (“FTU”) for our partners to come to see and test. We will continue this as well as our commercial validation process with a view to advancing them whilst minimising any costs incurred to Powerhouse.

The operation and ongoing improvements of the FTU at the Powerhouse Technology Centre has also been a major step change in PHE’s ability to further advance as well as promote our technology and expertise. The Centre has shown it is an invaluable marketing asset in helping support the Company’s investments in our capital projects in Northern Ireland thereby building a higher level of confidence in clients and Investors alike; and has also been reflected in the enquiries we have received from across the globe.  The team will continue to optimise the FTU and our technology in order to further improve the efficiency and commerciality of the Company’s DMG offering.

Excellent progress has also continued to be made on our patent applications / resolutions, with 12 applications now approved and a small number still pending.  This is a testament to the excellent engineering work that has been done over the last few years and will continue to be key part of our strategy in the future.

I would also like to take this opportunity to thank Paul Emmitt who stood down as CEO at our recent AGM.  He has left the Company in a strong position and we are very pleased to report that he has agreed to provide consultancy services to PHE, at the same time as we search for and then transition to a new CEO.  As a result of this, in September I assumed the interim role of Executive Chairman. I look forward to continuing to work closely with our highly experienced board to identify an appropriate new CEO as well as to continue to drive the Company forward and build on the momentum that Paul has created.

The second half of 2026 promises to be potentially the most exciting to date as our flagship projects advance closer to FID and our pipeline of projects progress through some key milestones.

I would like to take this opportunity to thank all our stakeholders for their continued support and look forward to providing further updates in due course.”

 For more information, contact:

For more information, contact:
Powerhouse Energy Group Plc David Hitchcock Interim Executive Chairman	[phone]
Strand Hanson Limited (Nominated & Financial Adviser) Ritchie Balmer / James Harris / Rob Patrick	[phone]
Turner Pope Investments (TPI) Limited (Broker) James Pope/Ben Turner	[phone]
Tavistock (Financial PR) Simon Hudson / Nick Elwes / Saskia Sizen	[phone] [e-mail]

About Powerhouse Energy Group plc

Powerhouse Energy has developed a process technology which can utilise waste plastic, end-of-life-tyres, and other waste streams to convert them efficiently and economically into syngas from which valuable products such as chemical precursors, hydrogen, electricity, heat and other industrial products may be derived. PHE’s process produces low levels of safe residues and requires a small operating footprint, making it suitable for deployment at enterprise and community level.

PHE also incorporates Engsolve Ltd, which is a revenue generating business who offer Engineering Services across all sectors with speciality services in the development of new technologies and clean energy.

For more information see www.phegroup.com

Consolidated Statement of Comprehensive Income

		(Unaudited) Group	(Unaudited) Group	(Audited) Group
		Six Months	Six Months	Year
		Ended	ended	Ended
		30 June	30 June	31 Dec
	Note	2026  £	2025 £	2025 £
Revenue	1	437,055	474,879	1,232,766
Cost of sales		(237,201)	(308,672)	(711,482)
Gross Profit		199,854	166,207	521,284
Engineering Project Costs		(109,349)	(323,349)	(623,913)
Administrative expenses		(944,821)	*(1,676,091)	(3,113,303)
Acquisition costs		-	-	-
Share of associate		-	-	-
Operating loss (pre-exceptional items)		(904,316)	(1,833,233)	(3,215,932)
Exceptional Items:
Goodwill impairment		-	-	-
Operating (Loss) (post exceptional items)		(904,316)	(1,833,233)	(3,215,932)
Net finance income/(cost)		(6,631)	(6,845)	(13,492)
(Loss) before taxation		(910,947)	(1,840,078)	(3,229.424)
Income tax credit/(charge)				297,055
(Loss) after taxation		(910,947)	(1,840,078)	(2,932,369)
Total comprehensive (loss)		(910,947)	(1,840,078)	(2,932,369)
Total comprehensive (loss) attributable to:
Owners of the Company		(910,947)	(1,840,078)	(2,932,369)
Non-controlling interests		-	-	-
(Loss) per share from continuing operations (pence)	3	(0.02)	(0.04)	(0.07)
*Please note administrative expenses in 30 June 2025 include £947k of share based payments see note 4.

The notes numbered 1 to 5 are an integral part of the half year financial information.

Statement of Consolidated Financial Position

		(Unaudited) Group As at	(Unaudited) Company As at	(Unaudited) Group As at	(Audited) Group As at
		30 June	30 June	30 June	31 December
	Note	2026 £	2026 £	2025 £	2025  £
ASSETS
Non-current assets
Intangible fixed assets		910,662	337,081	914,252	916,869
Tangible fixed assets		2,334,272	1,969,680	2,374,828	2,328,786
Investments in subsidiary undertakings		-	1,109,987	-	-
Total non-current assets		3,244,934	3,416,748	3,289,080	3,248,655
Current Assets
Loans receivable		-	-	-	-
Stock		-
Trade and other receivables		670,040	327,152	685,237	617,866
VAT Recoverable		-	-	-	-
Corporation tax		-	-	-	248,045
Cash and cash equivalents		1,415,252	1,224,643	1,470,111	703,691
Total current assets		2,085,292	1,551,795	2,155,348	1,569,602
Total assets		5,330,226	4,968.543	5,444,428	4,818,257
LIABILITIES
Current liabilities
Creditors: amounts falling due within one year		(552,789)	(1,314,783)	(450,586)	(399,938)
Total current liabilities		(552,789)	(1,314,783)	(450,586)	(399,938)
Total assets less current liabilities		4,777,437	3,586,760	4,993,842	4,418,319
Creditors: amounts falling due after more than one year		(67,499)	(67,499)	(113,951)	(97,434)
Net assets		4,709,938	3,586,261	4,879,891	4,320,885
EQUITY
Shares and stock	2	25,537,059	25,537,059	25,472,059	245,472,059
Share premium		62,455,809	62,455,809	61,220,809	61,220,809
Share based payment reserve		1,946,060	1,946,060	1,412,775	1,946,060
Accumulated deficit		(85,228,990)	(86,352,667)	(83,225,751)	(84,318,043)
Total surplus		4,709,938	3,586,261	4,879,891	4,320,885

The notes numbered 1 to 5 are an integral part of the half year financial information.

Consolidated Statement of Cash Flows

			(Unaudited)	(Unaudited)	(Audited)
			Group	Group	Company
			Six months	Six months	Year ended
			Ended	Ended	31
	Note		30 June	30 June	December
			2026 £	2025 £	2025 £
Cash flows from operating activities
Operating (loss)			(904,316)	(1,833,233)	(3,215,932)
Adjustments for:
-        Share based payments			-	947,433	1,480,718
-        Amortisation			14,618	14,618	32,545
-        Depreciation			59,000	30,882	125,798
-        Goodwill impairment			-	-	-
-        Tax (Paid)/Received			174,270	274,277	-
-        Other none cash movements			-	-	-
Changes in working capital:
-     Decrease/(Increase) in trade and other receivables			3,578	(412,750)	(345,380)
-        Increase/(decrease) in trade and other payables			178,451	58,772	(680)
-        Tax credits received			-	-	323,287
Net cash used in operations			(474,399)	(920,001)	(1,599,642)
Cash flows from investing activities
Loans advanced			-	-	-
Purchase of intangible fixed assets			(5,411)	(83,898)	(107,442)
Purchase of tangible fixed assets			(64,486)	(174,066)	(222,941)
Net cash used in investing activities			(69,897)	(257,964)	(330,383)
Cash flows from financing activities
Proceeds from issue of shares			1,300,000	1,375,000	1,375,000
Payments of principal under leases			(37,512)	(28,471)	(36,184)
Net finance costs			(6,631)	(6,845)	(13,492)
Net cash flows used in financing activities			1,255,857	1,339,684	1,325,324
Net (decrease) in cash and cash equivalents			711,561	161,719	(604,701)
Cash and cash equivalents at beginning of period			703,691	1,308,392	1,308,392
Cash and cash equivalents at end of period			1,415,252	1,470,111	703,691

The notes numbered 1 to 5 are an integral part of the half year financial information.

Statement of Changes in Equity

	Ordinary Share capital £	Deferred shares £	Share premium account £		Share based payment reserve £		Accumulated deficit £		Total £
Balance at 1 Jan 2025 (audited)	20,983,274	3,113,785	61,220,809		465,342		(81,385,674)		4,397,536
Transactions with equity participants:
-  Shares issued on exercise options	-	-	-		-		-		-
-  Shares issued on exercise warrants	-	-	-		-		-		-
-  Share issues in year	1,375,000	-	-		-		-		1,375,000
Share based payment	-	-	-		947,433		-		947,433
Share issue costs	-	-	-		-		-		-
Total comprehensive loss	-	-	-		-		(1,840,078)		(1,840,078)
Balance at 30 June 2025 (unaudited)	22,358,274	3,113,785	61,220,809		1,412,775		(83,225,751)		4,879,891
Transactions with equity participants:
-  Shares issued in year		-	-		-		-		-
Share based payments	-	-	-		533,285		-		533,285
Reserve transfer - goodwill impairment					-		-		-
Total comprehensive loss	-	-	-		-		(1,092,291)		(1,092,291)
Balance at 31 Dec 2025 (audited)	22,358,274	3,113,785	61,220,809		1,946,060		(84,318,043)		4,320,885
Share based payment	-	-	-		-				-
Subdivision of share capital	(21,911,108)	21,911,108	-						-
Shares issued in period	65,000	-	1,235,000						1,300,000
Total comprehensive (loss)	-	-	-		-		(910,947)		(910,947)
Balance at 30 June 2026 (unaudited)	512,166	25,024,893	62,455,809		1,946,060		(85,228,990)		4,709,938

The following describes the nature and purpose of each reserve within equity:

Deferred shares:  Represents the combined total of all deferred shares (0.5p, 4p and 4.5p).

Share premium: Amount subscribed for share capital in excess of nominal value.

Merger relief reserve: Amount subscribed for share capital in excess of nominal value where merger relief applies.

Accumulated deficit: Accumulated deficit represents the cumulative losses of the Company and all other net gains and losses and transactions with shareholders not recognised elsewhere.

The notes numbered 1 to 5 are an integral part of the half year financial information.

Notes (forming part of the half year Group financial information)

1. Summary of significant accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial information.

1.            Basis of preparation

This half year consolidated financial information is for the six months ended 30 June 2026 and has been prepared in accordance with International Accounting Standard 34 “Interim Financial Statements”. The accounting policies applied are consistent with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (IASB) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS (except as otherwise stated). The accounting policies and methods of computation used in the half year financial information are consistent with those of the previous financial year and corresponding half year reporting period.

The Group does not consider any new and amended standards that became applicable for the current reporting period to have any impact on the Groups results.

The unaudited results for period ended 30 June 2026 do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the period ended 31 December 2025 for the Company are extracted from the audited financial statements which contained an unqualified audit report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.

This half year financial statement will be, in accordance with the AIM Rules for Companies, available shortly on the Company's website.

2.            Going concern

The Directors have considered all available information about future events when considering going concern. The Directors have prepared and reviewed cash flow forecasts for 12 months following the date of these Financial Statements. The projections show that the Group will have sufficient funding to be able to continue as a going concern on the basis of its cash balances as at 30 June 2026. 

The half year financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern.

3.            Functional and presentational currency

This half year financial information is presented in £ sterling which is the Group’s functional currency.

4.            Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the Company holds a long-term interest and where the company has significant influence. The Company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the Company has a long-term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

5.            Revenue

The Group provides engineering services for the application of the DMG technology, the intellectual property that the Group owns. Revenue from providing services is recognised in the accounting period in which services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided to the extent to which the customer receives the benefits. This is determined based on the actual labour hours spent relative to the total expected labour hours.

Where a contract includes multiple performance obligations as specified by the work scope, the transaction price will be allocated to each performance obligation based on the estimated expected cost-plus margin.

Estimates of revenues, costs, or extent of progress toward completion of services are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management.

In the case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Group exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contact liability is recognised.

If a contract includes an hourly fee, revenue is recognised in the amount to which the Group has a right to invoice.  

2.         SHARE CAPITAL

	0.5 p Ordinary shares	0.01 p Ordinary shares	4.49 p Deferred shares	0.5 p Deferred shares	4.5 p Deferred shares	4.0 p Deferred shares
Balance at 1 January 2026	4,471,654,741	-	-	388,496,747	17,373,523	9,737,353
Share subdivision	(4,471,654,741)	4,471,654,741	4,471,654,741	-	-	-
Share issue		650,000,000	-
Balance at 30 June 2026	-	5,121,654,741	4,471,654,741	388,496,747	17,373,523	9,737,353

The deferred shares have no voting rights and do not carry any entitlement to attend general meetings of the Company. They carry only a right to participate in any return of capital once an amount of £100 has been paid in respect of each ordinary share. The Company is authorised at any time to effect a transfer of the deferred shares without reference to the holders thereof and for no consideration.

On 14 May 2026, the 4,471,654,741 0.5p ordinary shares were sub-divided into 4,471,654,751 0.01p ordinary shares and 4,471,654,751 0.49p deferred shares.

On 18 May 2026 and 5 June 2026 a total of 325,000,000 0.01p Ordinary shares were issued at 0.2p at each date.

3.         Loss per share

		(Unaudited) As at 30 June	(Unaudited) As at 30 June	(Audited) As at 31 December
		2026 £	2025 £	2024 £
Total comprehensive (loss)		(910,947)	(1,840,078)	(4,705,025)
Weighted average number of shares		4,648,551,478	4,210,038,074	4,194,201,141
Basic loss per share in pence		(0.02)	(0.04)	(0.11)
Diluted loss per share in pence		(0.02)	(0.04)	(0.11)

4.         SHARE BASED PAYMENTS

The expense recognised for share-based payments during the year is shown in the following table:

	(Unaudited) As at 30 June 2026 £	(Unaudited) As at 30 June 2025 £	(Audited) As at 31 December 2025 £
Share based payment charge/(credit) recognised in Income Statement
Expense arising from equity-settled share-based payment transactions:
- Share options for Directors and employees	-	930,685	465,342
- Shares issued for third party services	-	-	-
Total share-based payment in Income Statement	-	930,685	465,342
Share based payment charge recognised for warrants exercised
- Warrants for third party services	-	16,478	156,203
- Warrants lapsed in Jan 24	-	-	-
Total share-based payment in Share Premium Account	-	16,478	156,203
Total share-based payment charges/(credits) recognised	-	-	156,203
Other share-based payment movements
Exercise of options by Directors and employees	-	-	-
Exercise of warrants for third party services	-	-	-
Share Options Lapsed in April 24	-	-
Total share-based payment	-	947,433	621,545

The were no liabilities recognised in relation to share based payment transactions.

5.      EVENTS AFTER THE REPORTING PERIOD

On 29 June 2026, Paul Emmitt, Chief Executive Officer, confirmed that due to a change in family circumstances he would not stand for re-election at the Company's Annual General Meeting held on Thursday 3rd September 2026. Paul will continue to work with Engsolve on a technical consultancy basis. David Hitchcock our Non-Executive Chairman assumed an Executive Chair role at the conclusion of the AGM and will stay in place until a replacement CEO is identified.

 

END