Headlines. Chairman s statement

Energy Technique Plc

(“Energy Technique” or the “Company”)

Headlines

• Diffusion increased sales by 18% over corresponding half year;

• Turnaround in Diffusion’s operating profits to £149,000 from loss of £61,000 in corresponding half year; • Turnaround in Group profit before tax to £65,000 from loss of £359,000 in corresponding half year; • Strong balance sheet at 30 September 2011 with net assets of £1.42 million;

• Cash and cash equivalents at 30 September 2011 of £38,000;

• Diffusion has an improved order book with continuing high levels of enquiries.

Chairman’s statement

Introduction

I am very pleased to report a turnaround in trading performance in the half year ended 30 September 2011. Sales increased by 18% over the corresponding half year and with continued tight management and control of costs, this produced a return to profitability for both Diffusion and the Group. This is an encouraging set of trading results for Diffusion, particularly in the context of the current downturn in the UK property and construction market.

Financial performance

Sales in the half year were up 18% on the corresponding half year at £3.29 million (2010: £2.78 million), resulting in an operating profit for Diffusion of £149,000, compared with a loss in the corresponding half year of £61,000. Central and plc related costs were much lower in the current half year at £64,000 (2010: £144,000), arising from the decision not to replace the former Group CEO role, leading to a Group operating profit of £85,000 (2010: loss of £205,000).

After interest charges of £20,000 (2010: £20,000), Group profit before tax was £65,000, compared with a loss of £359,000 incurred in the corresponding half year.

The trading results of SIAS FM, the Company’s former building services management company sold on 24 March 2011, are included under Discontinued Operations.

The cash inflow from operating activities before changes in working capital was £121,000. Working capital absorbed £239,000 in line with the increase in sales levels and after interest charges of £20,000, cash absorbed by operations was £138,000. The Company remains soundly financed, having a strong balance sheet at 30 September 2011 with net assets of £1.42 million and cash at bank of £388,000, together with a modest draw down of £350,000 under its invoice discounting facility.

Diffusion

Diffusion has enjoyed very buoyant trading in the half year ended 30 September 2011, particularly in the context of the current downturn in the UK property and construction market. Both fan coils and commercial heating products experienced strong sales growth in the half year. Fan coil sales increased by 23% and commercial heating by 11% over the corresponding half year. A feature of the current sales cycle is the high volume of refurbishment work and demand for Diffusion’s energy efficient products.

Diffusion’s commercial heating sales have also grown through a combination of its existing customer base and new customer wins. The commercial heating range enjoys the same reputation for engineering quality as Diffusion’s fan coils and customers particularly like the availability of delivery from stock or short lead times, combined with a specialist bespoke service. End user customers are all blue chip retailers and hotels and these include Sainsbury’s, Tesco, House of Fraser, TK Maxx, New Look, Primark, Superdry, the new Westfield Stratford Shopping Centre and Excel Hotel London.

Current trading

Sales in October are ahead of management’s expectations. As I mentioned in my Chairman’s Statement accompanying the 31 March 2011 accounts, Diffusion has market leadership and a high quality reputation allowing for the successful pursuit of major commercial projects. With a number of landmark South East projects under development, we continue to experience high levels of enquiries at the premium end of the market and an improved order book. Whilst it is too early to predict the outturn for the remainder of the current financial year ending 31 March 2012, there is presently cause for more optimism.

Walter Goldsmith

Chairman

21 October 2011

Contacts:

Energy Technique Plc: 020 8783 0033

Walter Goldsmith, Chairman Rob Unsworth, Company Secretary

finnCap (Nominated Adviser): 020 7220 0500

Consolidated statement of comprehensive income

6 months to 6 months to Year to 30 September 30 September 31 March 2011 2010 2011 Unaudited Unaudited Audited £000 £000 £000 CONTINUING OPERATIONS Revenue 3,289 2,780 5,786 Cost of sales (2,341) (2,069) (4,297) Gross profit 948 711 1,489 Distribution costs (662) (656) (1,392) Administration expenses (201) (260) (466) Operating profit/(loss)

Before exceptional items 85 (159) (261)

Exceptional items — (46) (108)

85 (205) (369)

Finance costs (net) (20) (20) (27)

Profit/(loss) before taxation 65 (225) (396)

Taxation — — —

Profit/(loss) for the financial period from Continuing Operations 65 (225) (396)

DISCONTINUED OPERATIONS

Loss attributable to Discontinued Operations — (134) (740)

Total comprehensive income/(loss) for the period 65 (359) (1,136)

Earnings/(loss) per share:

Basic and diluted 0.20p (1.08)p (3.43)p

Basic and diluted from Continuing Operations 0.20p (0.68)p (1.20)p

Consolidated statement of financial position

30 September 30 September 31 March 2011 2010 2011 Unaudited Unaudited Audited £000 £000 £000 ASSETS

Non-current assets

Intangible assets 25 387 25

Plant and equipment 294 380 325

Deferred tax asset 305 305 305

Total non-current assets 624 1,072 655

Current assets

Inventories 722 661 745

Trade and other receivables 1,372 1,747 1,137

Cash 388 655 417

Total current assets 2,482 3,063 2,299

Total assets 3,106 4,135 2,954

LIABILITIES Current liabilities

Trade and other payables (1,102) (1,415) (1,143)

Current tax liabilities (164) (233) (150)

Obligations under finance leases (65) (93) (96)

Invoice discounting (350) (192) (189)

Total current liabilities (1,681) (1,933) (1,578)

Non-current liabilities

Obligations under finance leases — (65) (16)

Total liabilities (1,681) (1,998) (1,594)

Net assets 1,425 2,137 1,360

EQUITY

Equity attributable to equity holders

Issued capital 7,773 7,773 7,773

Other reserves 7,449 7,449 7,449

Retained earnings (13,797) (13,085) (13,862)

Consolidated statement of changes in equity

Share premium Other Retained

Share capital account reserves earnings Total £000 £000 £000 £000 £000 Half year ended 30 September 2011 - Unaudited

At 1 April 2011 4,351 3,422 7,449 (13,862) 1,360

Total comprehensive income — — — 65 65

At 30 September 2011 4,351 3,422 7,449 (13,797) 1,425

Half year ended 30 September 2010 - Unaudited

At 1 April 2010 4,351 3,422 7,449 (12,726) 2,496

Total comprehensive loss — — — (359) (359)

At 30 September 2010 4,351 3,422 7,449 (13,085) 2,137

Year ended 31 March 2011 - Audited

At 1 April 2010 4,351 3,422 7,449 (12,726) 2,496 Total comprehensive loss — — — (1,136) (1,136)

Consolidated cash flow statement

6 months to 30 September 2011 Unaudited £000 6 months to 30 September 2010 Unaudited £000 Year to 31 March 2011 Audited £000 Cash flows from operating activities

Profit/(loss) before taxation 65 (359) (1,136)

Loss on disposal of SIAS FM — — 416

Finance costs (net) 20 20 33

Depreciation 36 37 92

Operating income/(loss) before changes in working

capital 121 (302) (595)

Decrease/(increase) in inventories 23 55 (29) Increase in trade and other receivables (235) (319) (161) (Decrease)/increase in trade and other payables (27) 231 394

Cash absorbed by operations (118) (335) (391)

Finance costs (net) (20) (20) (33)

Net cash absorbed by operating activities (138) (355) (424)

Cash flows from investing activities

Purchase of plant and equipment (5) (25) (26) Purchase of business and intellectual property — (3) —

(5) (28) (26) Disposal of SIAS FM

Consideration — — 23

Costs of disposal — — (9)

Cash in company on disposal — — (136)

Net cash used in investing activities (5) (28) (148)

Cash flows from financing activities

Repayments under hire purchase obligations (47) (45) (91)

Net cash absorbed by financing activities (47) (45) (91)

Net reduction in cash and cash equivalents (190) (428) (663)

Cash and cash equivalents at beginning of period 228 891 891

Consolidated segmental analysis

6 months to 6 months to Year to 30 September 30 September 31 March 2011 2010 2011 Unaudited Unaudited Audited £000 £000 £000 CONTINUING OPERATIONS Revenue United Kingdom 3,061 2,207 4,957 Middle East 20 382 532 Rest of Europe 208 191 297 3,289 2,780 5,786 Operating profit/(loss)

Diffusion before exceptional items 149 (61) (88)

Exceptional item- bad debt — — (63)

Diffusion after exceptional items 149 (61) (151)

Central and plc costs before exceptional item (64) (98) (173) Exceptional item- settlement costs — (46) (45) Central and plc costs after exceptional item (64) (144) (218)

Operating profit/(loss) 85 (205) (369)

Interest (net) (20) (20) (27)

Profit/(loss) before tax 65 (225) (396)

Income tax charge — — —

Profit/(loss) for the period on Continuing Operations 65 (225) (396)

DISCONTINUED OPERATIONS- SIAS FM LIMITED

Revenue — 825 1,709

Operating loss — (134) (734)

Interest charge — — (6)

Loss before tax — (134) (740)

Income tax charge — — —

Loss for the period on Discontinued Operations — (134) (740)

Notes to the consolidated interim report

1. GENERAL INFORMATION

Energy Technique Plc (“the Company”) is a public limited company incorporated in the United Kingdom (registration number 13273). The Company is domiciled in the United Kingdom and its registered office address is 47 Central Avenue, West Molesey, Surrey KT8 2QZ. The Company’s Ordinary Shares are traded on the AIM market of the London Stock Exchange.

2. BASIS OF PREPARATION

Energy Technique Plc has adopted International Financial Reporting Standards (“IFRS”) as adopted by the European Union. The financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£000) except when otherwise indicated. The accounting policies and methods of computation used in the preparation and presentation of this half-yearly report are in a form consistent with that which will be adopted in the Company’s annual accounts.

3. REPORTING UNDER INTERNATIONAL REPORTING STANDARDS

As permitted, the Company has chosen not to adopt IAS 34 “Interim Financial Statements” in preparing these half-yearly financial statements and therefore the half-half-yearly financial information is not in full compliance with IFRS.

4. EARNINGS/(LOSS) PER SHARE

The earnings/(loss) per share calculations have been arrived at by reference to the following earnings/(loss) and weighted average number of shares in issue during the period.

6 months to 6 months to Year to 30 September 30 September 31 March 2011 2010 2011 Unaudited Unaudited Audited Pence Pence Pence Basic and diluted earnings/(loss) per share

Continuing Operations 0.20 (0.68) (1.20)

Discontinued Operations — (0.40) (2.23)

0.20 (1.08) (3.43)

£000 £000 £000 Profit/(loss) for the financial period after taxation

Continuing Operations 65 (225) (396)

Discontinued Operations — (134) (740)

65 (359) (1,136)

No. No. No.

Weighted average number of ordinary shares in issue 33,120,160 33,120,160 33,120,160 Weighted average number of ordinary shares on a diluted basis 33,120,160 33,120,160 33,120,160

5. OTHER INFORMATION

The half-yearly financial statements do not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements. The financial information for the year ended 31 March 2011 has been extracted from the statutory financial statements for the Company for that period. These published financial statements prepared in a form consistent with International Financial Reporting Standards, as adopted by the European Union, were reported on by the auditors without qualification or an emphasis of matter reference and did not include a statement under Section 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.