Companies: PPS   

Fuel cells business Proton Power Systems is poised to move into new sectors and with a new, more commercial approach.

Interim results from the Bavaria-based company, which earlier in the year raised £3m to pay off a loan, showed losses widening from £951,000 to £1.3m, on revenues up 54% to £455,000. However, new chief executive Thomas Melczer, who’s 20-year stint at Siemens and expertise since in back-up power systems, aims to apply ‘a more industrial focus’ to Proton.

‘In the past Proton was focused on R&D and was working for many years designing customer applications, and so far had no real product to go into volume production with,’ he laments. ‘I want to change that so we produce and sell product.’

Furthermore, Melczer wants the company to outsource manufacturing rather than bring it in-house, which had been the intention. ‘It’s less capital expenditure, less risk, they have more experience in assembly and we can use their buying power as we have been paying too high prices.’

He sees many global opportunities for the company’s products – which include a triple-hybrid power solution for forklift trucks and a collaboration with commercial vehicle specialist Karmann for an ‘Ecocarrier’ zero-emission vehicle – especially through his ‘experience and contacts in Asia, the Middle East and Europe’. Soon, Proton also expects to complete a £2m placing to help it move into the uninterruptible power supply sector, targeting small data centres and the like.

Melczer's more commercial approach could see the shares, down some distance from 2006's 80p float price, repay a speculation.

Proton Power Systems	AIM	£5.53m	7.75p	-0.50p
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Melczer seeks satisfaction			15/10/2008
Proton Power Systems			26/09/2008
Proton powers up			04/08/2008
Newcomer - Proton Power Systems			31/10/2006