Loss-making Cranfield Aerospace Solutions (CAeS) continues to strike an upbeat tone in its latest accounts, predicting a “significant volume of incremental business” in the future from the modular hydrogen fuel cell propulsion system it is developing.
But in the short-term, losses have continued, standing at £4.3 million ($5.85 million) after tax for the 12 months ended 30 September 2024, roughly in line with the £4.2 million loss recorded a year earlier.
At an operating level, losses eased slightly to £3.8 million from £4 million in the preceding 12 months, although interest payments quadrupled in the period to £1.2 million, chiefly driven by loan notes issued in the period.
Revenues for the year were £1.9 million, compared with £2.1 million in the prior period.
Despite the losses, CAeS remains positive. It says its fuel cell powertrain – covering a range from 125-500kW – will be suitable for numerous applications within aerospace, but also in other sectors such as automotive or marine.
“Hydrogen propulsion, and the company’s technology and delivery plans are expected to lead to a significant volume of incremental business in future years,” the accounts state.
It says the propulsion system could equip “a range of air vehicles”, from small passenger aircraft to cargo drones, and also be used as an auxiliary power unit on larger single- or twin-aisle aircraft.
Development of the powertrain has benefitted from around £8 million in funding from the UK’s Aerospace Technology Institute under Project Fresson – an activity that came to an end in March this year.
To bankroll the further research and development efforts needed, CAeS continues to seek additional investment through a Series B funding round.
This would “enable the company to finish developing the prototype [powertrain] and carry out a test flight in 2025”, the accounts say.
New chief executive Hanif Nabi told FlightGlobal in May that he was hopeful the firm’s existing backers would this year inject sufficient funds to give CAeS a 12-18-month cash runway.
CAeS had been planning to fly the fuel cell system aboard a converted Britten-Norman BN-2 Islander although it is now eyeing different platforms to serve as a testbed.
During the accounting period, CAeS received £3.6 million from issuing convertible loan notes – £2.37 million in January 2024 and £1.25 million in August that year – bearing a 10% interest rate, the report discloses.
“The company continues to manage its cash flow carefully to enable the ongoing development of the Fresson programme,” it states.
“The directors believe that the outstanding orderbook and importantly the opportunities generated from Project Fresson should allow the company to grow substantially in its re-aligned core business in the coming years.”
CAeS has endured a recent period of management turmoil, with several high-level departures, including that of then chief executive Paul Hutton.
