**Summary of EQTEC PLC Interim Results for H1 2025**
**Financial Highlights**
**Revenue** €0.6 million (H1 2024: €1.4 million), reflecting a shift towards high-margin IP-rich services and away from high-risk development activities.
**Gross Profit** €0.5 million (H1 2024: €0.8 million), with a significant improvement in gross margin to 82% (FY 2024: 53%).
**EBITDA Loss** €1.1 million (H1 2024: €1.6 million).
**Net Loss** €2.07 million (H1 2024: €3.2 million), including a €0.32 million provision for asset impairment.
**Capital Raise** £1.5 million (€1.7 million) through a share placement to strategic investor Compact WTL Tech Limited (CWTL) at a premium.
**Post-Period Funding** £0.25 million (€0.3 million) equity investment raised in August 2025 from CWTL.
**Operational and Commercial Highlights**
**AgriGas Plant (Greece)** Completed cold and hot commissioning in August, with final enhancements on the pellet line in September. Secured revenues and a maintenance support contract.
**Italia MDC (Italy)** Advanced €320,000 in shareholder loans but ceased unilateral support, leading to suspended repayments and remedial works. Agreed on a controlling investment and debt restructuring with Quainstone, reducing EQTECs equity stake from 49% to 27%.
**Grand Combe Project (France)** Pursuing redevelopment after Idex withdrew. Secured €175,000 from GRDF for pre-FEED work on new projects, including the Green Gas Provence plant.
**Synthetic Fuels** Validated syngas-to-liquids pathway with CompactGTLs pilot plant, producing high-quality synthetic crude. Relocating the plant to LERMAB for extended trials and advancing UAE investor discussions for modular SAF projects.
**U.S. Projects**
**BMEC** Secured USDA financial sponsorship and USD 39 million in debt financing, with a community offering underway for the final USD 1.2 million equity.
**NFCP** Exited Chapter 11 bankruptcy, with EQTEC retaining nominal equity. Targeting COD by year-end, though timing is uncertain.
**Hawaii Collaboration** Advanced FEL-3 proposal for the Aloha Carbon RNG project, expected to commence in Q1 2026.
**Belišće Project (Croatia)** Reframing after DS Smith closed its local paper mill, losing feedstock supply but maintaining offtake potential. Requires alternative feedstock to progress.
**Strategic Developments**
**Shareholder Approval** Reduced nominal value of ordinary shares from €0.01 to €0.0001 at the AGM in September 2025.
**Market Context** Positioned to capitalize on growing demand for Sustainable Aviation Fuel (SAF) and advanced biofuels, with IATA forecasting 300+ SAF projects globally by 2030.
**Management Commentary**
**Ian Pearson (Chairman)** Highlighted near-term volatility but emphasized the compelling long-term opportunity, with improving gross margins and validation of the synthetic fuels pathway.
**David Palumbo (CEO)** Acknowledged external headwinds but stressed progress in strategic projects, cash preservation, and positioning for future growth as mandates for advanced fuels accelerate.
**Outlook**
**Challenges** Setbacks in H1 2025 due to delays, withdrawals, and restructuring among customers and partners. Going concern assessment reflects material risks related to funding and cash flow.
**Resilience** Demonstrated adaptability in reconfiguring business cases and sustaining viable projects across Europe and the U.S.
**Future Focus** Aiming to rebuild the investor base, attract strategic partners, and accelerate the delivery of sustainable fuels at commercial scale, leveraging modular and scalable technologies.
**Post-Period Events**
**Partial Exercise of Option** Raised £250,000 in August 2025 through partial exercise of the CWTL option agreement, supporting working capital requirements.
**Conclusion**
EQTEC PLC faces near-term financial and operational challenges but remains strategically positioned to capitalize on the growing demand for sustainable fuels. The company is focused on cash preservation, disciplined execution, and leveraging its technology to secure long-term growth.