POWERHOUSE ENERGY, THE FUTURE OF SUSTAINABILITY?

Ticker: PHE

Price change since beginning of 2024: +251.62%

12- Month price change: +202.56%

INTRODUCTION

Powerhouse Energy Group (PHE) is a company that works on converting waste plastics into hydrogen, which is then later used for energy supply purposes. It is one of the few UK penny shares that could be worth considering. The company has been around for a while, it really put itself on the map back in 2015, when it opted to move its research and development unit from Australia to the United Kingdom. The company has an ambitious aim to address global pollution and climate change and has been working to develop technologies that align with their mission. The company is looking to utilize its technology patents so that it can achieve global expansion and ensure that its technology is applicable on a commercial scale.

POWERHOUSE AIMING TO GO GLOBAL

Powerhouse Energy Group (PHE) has been vocal in its aim of scaling operations. The company is hard at work and is focused on getting funding for their international projects and continues to expand globally. It recently agreed the delivery of five new projects in Australia. The agreement is set up as a royalty licensing agreement, which will see the company earn fees for their services, without a high initial outlay of capital. The company’s share price saw a sharp rally on the back of that agreement, which could be an indication of investor confidence in the company’s ability to continue its global expansion.

POWERHOUSE FOCUSES ON REVENUE GROWTH, AS COST CUTTING TAKES EFFECT

According to the most recent earnings report, Powerhouse Energy Group (PHE) has managed to reduce its cost by around £300,000 GBP, while maintaining a strong cash balance of over £4m. The company’s financial position is healthy, with the company’s assets far outweighing the liabilities, giving the company the ability to fund future projects and focus on research and development. Refining their products and improving their efficiency should lead to an increased revenue growth. Combined with the cost cutting effort recently implemented, the company may be on the right path for further improvement.

CAN POWERHOUSE CAPITALIZE ON THE GREEN WAVE?

With countries setting ambitious net zero targets, Powerhouse Energy Group (PHE) may be able to capitalize on a favorable market environment, as governments subsidize green energy and pollution reducing projects. Furthermore, Powerhouse Energy Group (PHE) continues to strive for improvement, with the recent delivery of its kiln machine, a machine that converts waste into synthetic gases. The CEO highlighted that the machine would remain at their newly built research center, as the company continues to improve the conversion process. Overall, the company has developed some promising technology, with projects now lined up in Australia, Switzerland, Italy and Hong Kong. The recent share price action has reflected investor confidence in the company’s operations and what the company is doing, and this could be just the beginning. Based on these factors, Powerhouse Energy Group could be one of the more intriguing penny stocks to invest in.