TIDMRED
RNS Number : 8702N
RedT Energy PLC
27 September 2019
27 September 2019
redT energy plc
("redT" or the "Company")
Interim Results 2019
redT energy plc (AIM:RED), the energy storage technology
company, is pleased to announce its results for the six months
ended 30 June 2019
HIGHLIGHTS
Financial
-- Revenue from continuing operations GBP0.2m (H1 2018 GBP0.2m)
-- Trading loss(1) reduced to GBP3.8m (H1 2018: GBP5.5m loss) as operating costs cut
-- Operating loss from continuing operations GBP3.5m (H1 2018: GBP5.7m loss)
-- Operating loss is net of GBP0.6m profit on disposal of Camco USA business
-- Half year end free cash GBP3.1m (31 December 2018: GBP3.3m)
-- Loans and borrowings GBPNil (H1 2018: GBPNil)
-- Profit from discontinued operations GBPNil (H1 2018 GBPNil)
(1) Operating loss from continuing operations excluding profit
on disposal of Camco USA and share-based payments
2019 interim financials were in line with management
expectations.
Proposed Merger and Fundraising
On 25 July 2019, the Group announced it had agreed to outline
terms, via a non-binding Memorandum of Understanding, for a
proposed merger with Avalon Battery Corporation ("Avalon"). To
drive the growth and development of the enlarged Group, provide
working capital and take advantage of the substantial opportunity
presented by the merger, the enlarged Group intends to raise at
least GBP24m of new funds as part of the merger. redT and Avalon
have received substantial preliminary support for this fundraising
from a strong, new strategic investor that intends to make a
cornerstone investment in the merged business, as well as from
existing institutional investors in redT and both existing and
certain proposed new investors in Avalon. The outline terms
incorporate some interim financing to fund the business and
additional costs associated with the merger process whilst it is
underway. It is expected that the merger and the fundraising will
be inter-conditional and complete at the same time.
Further details on the interim funding are expected to be
announced in the near future, at which time a conference call will
be held for investors.
Operational
During H1 2019 redT focused on its near-term pipeline, cutting
costs and other expenditure where possible.
Developments during the period include:
-- First Gen 3 machine manufactured and tested awaiting Anglian
Water to complete civil works at their site ready to accept the
machine. Once this machine is commissioned, there are significant
follow-on opportunities to optimise energy storage across other of
Anglian Water's water treatment sites via a Collaborative
Partnership agreement.
-- Solar plus Storage Partnership with Statkraft. In March 2019,
the Group signed a heads of terms partnership with Norwegian state
utility company, Statkraft, to provide a fully financed solar plus
storage solution to UK C&I customers. This is the first time a
solar plus storage product, financed under a PPA model, has been
offered to the UK market. The partnership aims to roll out
approximately 100MWp of PV and 60MWh of redT flow machines (800
units) to the UK market over the next 3 years.
-- Energy Superhub Oxford, redT's first large, UK grid project.
In March 2019 the Group signed an agreement as a member of a
consortium set up to deliver a GBP41m project incorporating a 50MW,
grid-connected, vanadium flow / lithium-ion hybrid energy storage
system in Oxford, UK. redT will supply and install 5MWh (72 units)
of vanadium redox flow machines together with ancillary components.
The project will be the largest deployment of flow machines in the
UK and will be the largest vanadium flow / lithium-ion hybrid
energy storage system globally. The project is now scheduled for
delivery in 2020.
-- German grid portfolio - our revised proposition for the first
project remains under consideration with our funding partner,
however progress has been delayed as a result of ongoing changes to
the German Secondary Control Reserve market by the German
regulatory bodies. Clarity on the changes is not expected before
December 2019. An update on the project will be provided once the
implication of the proposed changes has been assessed, likely
during H1 2020.
Commercial Update
As at 31 August 2019, the Group estimates its weighted sales
opportunity pipeline to be circa GBP203m (31 May 2019: GBP199m),
determined as detailed in the table below. These estimates do not
represent forecasts of the future financial performance of the
Group.
Deal Stage of Gross(1) Weighted(1) Average Expected
Project Conversion Rate
-----------------
Project Development GBP48m GBP25m 52%
----------- ------------- -----------------
Quoted GBP80m GBP14m 17%
----------- ------------- -----------------
Early stage GBP1,132m GBP164m 14%
----------- ------------- -----------------
Total GBP1,260m GBP203m 16%
----------- ------------- -----------------
1. The "gross" amounts in the above table are extracted from the
Group's customer relationship management (CRM) system which tracks
the progress and status of live commercial sale enquiries. The
"weighted" figures are calculated by applying a probability
weighting to the gross value of each enquiry based on management's
estimate of the likelihood that an enquiry will result in a firm
order at some point in the future. The probability weighting does
not take into account the timing of when an enquiry might become an
order. Management uses the following broad guidelines when
allocating probability weightings:
Remote 0-10%
Possible 10-40%
Reasonably
likely 40-60%
Probable 60-90%
This pipeline excludes the recent 72 unit Energy Superhub Oxford
project win, as this is considered an order.
Financial Review
As previously announced, it is necessary for the Group to raise
additional financing to fund operations until production and sales
are increased to a level at which the business becomes cash
generative. On 14 March 2019 the Board launched a comprehensive
Strategic Review to explore all the options available to the Group
to fund its business. On 9 April 2019 the Group raised GBP3.2m
(before expenses) from a placing and open offer to fund the
business whilst the Strategic Review is completed and long-term
funding secured. At the same time, a cost cutting exercise was
implemented to reduce operating costs to a minimum whilst ensuring
that the long-term value of the business is maintained. The main
element of this cost cutting was a redundancy process which reduced
ongoing staff costs by 25%, a monthly saving of GBP83k after the
redundancies are fully effective.
On 5 April 2019 the Camco USA business was sold completing the
exit from the legacy Camco activities. This transaction resulted in
a cash inflow of GBP0.6m, net of cash sold with the business.
GBP0.5m of this was received by 30 June 2019 with the balance
received at the end of July 2019. The results from Camco USA, up to
the date of sale (GBP35k loss), are reported in the results from
discontinued operations in these financial statements. The
transaction generated a profit on disposal of GBP0.6m.
The cash balance at 30 June 2019 was GBP3.1m. The Group's latest
cash flow forecasts indicate that, without further funding, such as
the interim funding mentioned above, cash will run out in December
2019. Unless additional funding is obtained by December, the Group
would have no option but to cease trading.
The Group's need to raise additional investment creates a
material uncertainty that casts significant doubt about its ability
to continue as a going concern, however, based on the developments
described above, the Board is optimistic that the necessary funding
will be secured in the appropriate time scale. The Board therefore
considers it appropriate to present these financials on a going
concern basis.
Outlook
The immediate focus is on securing interim funding to complete
the proposed Merger and Fundraise and ensure a satisfactory
conclusion to the Strategic Review process This should provide both
the immediate funding required by the Group and in the near term
create a leading, global player with the secure financial position,
global footprint and industry expertise required to succeed in the
rapidly emerging energy storage market.
Alongside this process, which is being led by the Board, the
executive team remain focussed on the manufacture, delivery and
operation of our existing projects and securing further business
from our sales opportunity pipeline.
Work has already started to identify and plan for the exciting
opportunities that will be created by the merger with Avalon.
Further details of these will be provided later in the process.
Commenting on the results, redT Executive Chairman, Neil O'Brien
said:
"The global energy storage market is continuing its rapid growth
as our energy system progresses strongly towards widespread
decarbonisation. I am highly optimistic about the growing role our
products will play in the inevitable global energy transition and
retain my confidence in the redT team's ability to deliver
shareholder value.
It is my strong belief that the proposed merger with Avalon and
accompanying fundraise, if successful, will create a strong and
financially robust company that will become a leader in the
vanadium redox flow sector, and can compete effectively in one of
the world's fastest growing markets.
I would like to thank our shareholders for their patience and
support throughout the Strategic Review process to date and I look
forward to providing further news on progress soon."
Enquiries:
redT energy plc +44 (0)20 7121 6111
Neil O'Brien, Executive Chairman
Fraser Welham, Chief Financial Officer
Joe Worthington, Investor & Media
Relations
Investec Bank plc (Nominated Adviser
and Broker) +44 (0)20 7597 5970
Jeremy Ellis / Chris Sim / Cassie
Herlihy
VSA Capital (Joint Broker)
Andrew Monk / Andrew Raca / Simon
Barton +44 (0)20 3005 5000
Notes to Editors
About redT energy
redT energy plc are experts in energy storage, specialising in
the design, manufacture, installation and operation of energy
storage infrastructure which creates revenue alongside reliable,
low-cost renewable generation for businesses, industry and
electricity distribution networks. Using patented vanadium redox
flow technology to store energy in liquid, redT's own energy
storage machines can be run continually with no degradation:
charging and discharging for over 25 years, matching the lifespan
of renewable assets in on-grid, off-grid and weak-grid
settings.
redT's energy storage solutions, developed over the past 15
years, address today's changing energy market by providing a
flexible platform for time shifting surplus renewable power,
securing electricity supplies and earning revenue through grid
services. The Company has customers in the UK, Europe, sub-Saharan
Africa, Australia and Asia Pacific. For more information, visit
www.redTenergy.com
For sales, press or investor enquiries, please contact the redT
team on +44 (0)207 061 6233.
Consolidated Statement of Financial Position
At 30 June 2019
H1 2019 H1 2018 FY 2018 (audited)
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 398 574 538
Intangible assets and goodwill 4 13,402 13,265 13,491
Deferred tax assets - 85 -
13,800 13,924 14,029
--------------- --------------- -----------------
Current assets
Inventory 5 494 1,785 525
Prepayments and accrued income 6 404 989 626
Trade and other receivables 7 339 696 559
Corporation tax receivable - - -
Cash and cash equivalents 8 3,072 4,319 3,344
4,309 7,789 5,054
--------------- --------------- -----------------
Total assets 18,109 21,713 19,083
--------------- --------------- -----------------
Current liabilities
Trade and other payables 9 (856) (1,390) (1,567)
Deferred income 10 (276) (1,558) (173)
(1,132) (2,948) (1,740)
--------------- --------------- -----------------
Non-current liabilities
Deferred income 10 - (46) (35)
(46) (35)
--------------- --------------- -----------------
Total liabilities (1,132) (2,994) (1,775)
--------------- --------------- -----------------
Net assets 16,977 18,719 17,308
--------------- --------------- -----------------
Equity attributable to equity holders
of the parent
Share capital 8,157 6,135 6,777
Share premium 101,023 95,325 99,473
Share-based payment reserve 2,411 1,904 2,225
Retained earnings (94,464) (84,211) (91,072)
Translation reserve 1,272 988 1,327
Other reserve (1,422) (1,422) (1,422)
Non-controlling interest - - -
Total equity 16,977 18,719 17,308
--------------- --------------- -----------------
Consolidated Statement of Comprehensive Income
For the 6 months to 30 June 2019
H1 2019 H1 2018 FY 2018
(unaudited) (unaudited) (audited)
Continuing operations GBP'000 GBP'000 GBP'000
Revenue 192 192 2,525
Cost of sales (25) (176) (2,170)
----------- ----------- ---------
Gross profit 167 16 355
Administrative expenses (4,069) (5,745) (12,636)
Gain on sale of discontinued operations 578 - -
----------- ----------- ---------
Results from operating activities (3,491) (5,729) (12,281)
Finance expense (3) - -
Financial income - 13 14
Foreign exchange movement (30) (168) (162)
----------- ----------- ---------
Net financing expense (33) (155) (148)
Loss before tax (3,357) (5,884) (12,429)
Income tax charge - (7) (92)
----------- ----------- ---------
Loss from continuing operations (3,357) (5,891) (12,521)
Discontinued operations
(Loss)/profit from discontinued operations
(net of tax) 2 (35) 46 (1)
----------- ----------- ---------
Loss for the period (3,392) (5,845) (12,522)
Other comprehensive income
Exchange differences on translation
of foreign operations (55) 105 260
Total comprehensive loss for the period (3,447) (5,740) (12,262)
----------- ----------- ---------
Loss for the period attributable to:
Equity holders of the parent (3,392) (6,004) (12,681)
Non-controlling interest - 159 159
----------- ----------- ---------
Loss for the period (3,392) (5,845) (12,522)
----------- ----------- ---------
Total comprehensive loss attributable
to:
Equity holders of the parent (3,447) (5,899) (12,421)
Non-controlling interest - 159 159
----------- ----------- ---------
Total comprehensive loss for the period (3,447) (5,740) (12,262)
----------- ----------- ---------
Basic loss per share in GBP pence
From continuing operations 11 (0.39) (0.89) (1.77)
From continuing and discontinued operations 11 (0.39) (0.88) (1.77)
Diluted loss per share in GBP pence
From continuing operations 11 (0.39) (0.89) (1.77)
From continuing and discontinued operations 11 (0.39) (0.88) (1.77)
Consolidated Statement of Changes in Equity
For the 6 months to 30 June 2019 (unaudited)
Equity Equity
attributable attributable
to to
Share-based shareholders non-controlling
Share Share payment Retained Translation Other of the interest Total
Capital premium reserve Earnings reserve reserve Company equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2019 6,777 99.473 2,225 (91,072) 1,327 (1,422) 17,308 - 17,308
Total
comprehensive
loss for the
period
Loss for the
period - - - (3,392) - - (3,392) - (3,392)
Other
comprehensive
income
Foreign
currency
translation
differences - - - - (55) - (55) - (55)
_____ _____ _____ _____ _____ _____ _____ _____ _____
Total
comprehensive
loss for the
period 6,777 99,473 2,225 (94,464) 1,272 (1,422) 13,861 - 13,861
_____ _____ _____ _____ _____ _____ _____ _____ _____
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Share-based
payments - - 186 - - - 186 - 186
Issuance of
shares 1,380 1,821 - - - - 3,201 - 3,201
Transaction
costs arising
on share
issues - (271) - - - - (271) - (271)
_____ _____ _____ _____ _____ _____ _____ _____ _____
Total
contributions
by and
distributions
to owners 1,380 1,550 186 - - - 3,116 - 3,116
_____ _____ _____ _____ _____ _____ _____ _____ _____
Balance at 30
June 2019 8,157 101,023 2,411 (94.464) 1,272 (1,422) 16,977 - 16,977
_____ _____ _____ _____ _____ _____ _____ _____ _____
For the 6 months to 30 June 2018 (unaudited)
Equity Equity
attributable attributable
to to
Share-based shareholders non-controlling
Share Share payment Retained Translation Other of the interest Total
Capital premium reserve Earnings reserve reserve Company equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2018 5,560 92,198 1,707 (78,207) 883 (1,422) 20,719 (159) 20,560
Total
comprehensive
loss for the
period
Loss for the
period - - - (6,004) - - (6,004) 159 (5,845)
Other - - - - - - - - -
comprehensive
income
Foreign
currency
translation
differences - - - - 105 - 105 - 105
_____ _____ _____ _____ _____ ____ _____ _____ _____
Total
comprehensive
loss for the
period - - - (6,004) 105 - (5,899) 159 (5,740)
_____ _____ _____ _____ _____ _____ _____ _____ _____
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Share-based
payments - - 197 - - - 197 - 197
Issuance of
shares 575 3,352 - - - - 3,927 - 3,927
Transaction
costs arising
on share
issues - (225) - - - - (225) - (225)
_____ _____ _____ _____ _____ _____ _____ _____ _____
Total
contributions
by and
distributions
to owners 575 3,127 197 - - - 3,899 - 3,899
_____ _____ ____ _____ _____ _____ _____ _____ _____
Balance at 30
June 2018 6,135 95,325 1,904 (84,211) 988 (1,422) 18,719 - 18,719
_____ _____ _____ _____ _____ _____ _____ _____ _____
For the year ended 31 December 2018 (audited)
Equity Equity
attributable attributable
Share-based to to
Share Share payment Retained Translation Other shareholders non-controlling Total
capital premium reserve earnings reserve reserve of the interest Equity
Company
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1
January 2018 5,560 92,198 1,707 (78,391) 1,067 (1,422) 20,719 (159) 20,560
Total
comprehensive
loss for
the year
Loss for the
year - - - (12,522) - - (12,522) (12,522)
Minority
interest loss
not
recoverable (159) (159) 159 -
Other
comprehensive
loss
Foreign
currency
transaction
differences - - - 260 - 260 - 260
_____ _____ _____ _____ _____ _____ _____ ______ _____
Total
comprehensive
loss for
the year - - - (12,681) 260 - (12,421) 159 (12,262)
___ _____ _____ _____ _____ _____ _____ ______ _____
Transactions
with owners,
recorded
directly in
equity
Contributions
by and
distributions
to owners
Share-based
payments - - 518 - - - 518 - 518
Issuance of
shares 1,217 7,834 - - - - 9,051 - 9,051
Transaction
costs arising
on
share issues - (559) - - - - (559) - (559)
_____ _____ _____ _____ _____ _____ _____ ______ _____
Total
contributions
by and
distributions
to owners 1,217 7,275 518 - - - 9,010 - 9,010
_____ _____ _____ _____ _____ _____ _____ ______ ______
_____ _____ _____ _____ _____ _____ _____ ______ _____
Balance at 31
December 2018 6,777 99,473 2,225 (91,072) 1,327 (1,422) 17,308 - 17,308
_____ _____ _____ _____ _____ _____ _____ ______ _____
Consolidated Statement of Cash Flow
For the 6 months to 30 June 2018
H1 2019 H1 2018 FY 2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss for the year (3,392) (5,845) (12,522)
Adjustments for:
Depreciation, amortisation and impairment 130 130 274
Foreign exchange loss on translation 30 168 162
Financial income - (13) (14)
Impairment of receivables - bad debt
write-off - - (4)
Equity settled share-based payment
expenses 220 225 570
Gain on disposal of continuing operations (578) - -
Taxation - 7 92
----------- ----------- ----------
(3,590) (5,328) (11,442)
Decrease/(increase) in trade and other
receivables 302 1,243 1,433
Increase in inventory 31 (1,235) 25
Decrease in trade and other payables (365) (343) (1,500)
----------- ----------- ----------
(32) (335) (42)
Net cash from operating activities (3,622) (5,663) (11,484)
----------- ----------- ----------
Cash flows from investing activities
Acquisition of property, plant & equipment - (276) (382)
Net cash from investing activities - (276) (382)
----------- ----------- ----------
Cash flows from financing activities
Proceeds from the issue of share capital 2,929 3,702 8,492
Proceeds from sale of discontinued
operations 476 - -
Interest received - 13 14
Net cash from financing activities 3,405 3,715 8,506
----------- ----------- ----------
Net (decrease)/increase in cash and
cash equivalents (217) (2,224) (3,360)
Net cash and cash equivalents at 1
January 3,344 6,603 6,603
Effect of foreign exchange rate fluctuations
on cash held (55) (60) 101
Net cash and cash equivalents at period
end 3,072 4,319 3,344
----------- ----------- ----------
Notes
Significant accounting policies
redT energy plc (the "Company") is a public company incorporated
in Jersey under Companies (Jersey) Law 1991. The address of its
registered office is 3(rd) floor, Standard Bank House, 47-49 La
Motte Street, St Helier, Jersey, JE2 4SZ. The consolidated interim
financial report of the Company for the period from 1 January 2018
to 30 June 2018 comprises the Company and its subsidiaries
(together the "Group").
Basis of preparation
The annual financial statements of the Group for the year ended
31 December 2018 have been prepared in accordance with IFRSs as
adopted by the EU ("Adopted IFRSs"). The interim set of financial
statements included in this half-yearly report has been prepared in
accordance with the recognition and measurement requirements of
IFRSs as adopted by the EU. The interim set of financial statements
has been prepared applying the accounting policies and presentation
that were applied in the preparation of the company's published
consolidated financial statements for the year ended 31 December
2018. They do not include all of the information required for full
annual financial statements and should be read in conjunction with
the consolidated financial statements of the Group as at and for
the year ended 31 December 2018.
This interim financial information has been prepared on the
historical cost basis. The accounting policies applied are
consistent with those adopted and disclosed in the annual financial
statements for the period ended 31 December 2018. The accounting
policies have been consistently applied across all Group entities
for the purpose of producing this interim financial report.
The financial information included in this document does not
comprise of statutory accounts within the meaning of Companies
(Jersey) Law 1991. The comparative figures for the financial year
ended 31 December 2018 are not the company's statutory accounts for
that financial year within the meaning of Companies (Jersey) Law
1991. Those accounts have been reported on by the company's
auditors and delivered to the Jersey Financial Services Commission.
The report of the auditors was unqualified.
Estimates
The preparation of the interim financial report in conformity
with IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. The
estimates and associated assumptions are based on historical
experience and other factors that are believed to be reasonable
under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
Going Concern Basis
The redT business is still a young business in an emerging
market and has not yet reached the stage in its development when it
is cash generative. As such, it is still dependent on its ability
to attract additional investment to fund its operations.
The cash balance at 30 June 2019 was GBP3.1m. The Group's latest
cash flow forecasts indicate that, without further funding such as
the interim funding, cash will run out in December 2019. Unless
additional funding is obtained by then the Group would have no
option but to cease trading. However, the Board is optimistic,
based on the progress and the advanced status of discussions,
interim funding will be secured which, combined with the current
cash reserves, will provide the Group with adequate time to
conclude the Strategic Review and secure the necessary long-term
funding that it requires.
It is still not certain that the Group will be able to secure
the level of investment required before cash runs out. This
therefore creates a material uncertainty that casts significant
doubt about the Group's ability to continue as a going concern.
In addition to the funding issue discussed above, the Directors
have also reviewed other varying, and wide-ranging information
relating to both present and future conditions when reaching their
conclusion regarding going concern. These included:
-- the opportunity presented by the rapidly emerging energy storage market;
-- the commercial viability of redT's vanadium redox flow energy
storage product within this market;
-- contracts being delivered and projects currently in the pipeline.
The Group also has established relationships with a number of
customers and suppliers and has the continuing support of existing
investors, as evidenced by recent fundraises.
Having taken all of the above factors into account, the
Directors continue to believe it is appropriate to prepare these
financial statements on a going concern basis, noting the material
uncertainty that exists arising from the need to secure long-term
funding within the coming few months.
The financial statements do not include any adjustments that
would be necessary should the going concern basis of preparation
not be appropriate.
1 Segmental Reporting
Following the disposal of the Camco USA business in April 2019
the Group comprises one reporting segment, "redT". redT provides
energy storage solutions with financing options, using various
energy storage technologies including its own durable and robust
energy storage machines based upon proprietary vanadium redox flow
technology. The redT segment also contains the corporate costs of
the Group.
2 Discontinued operations
On 5 April 2019 the Group completed the divestment of its legacy
Camco business with the sale of its wholly owned subsidiary Camco
International Group Inc. ('CIG'). This business provides project
development and asset management services to biogas projects in the
USA.
CIG was sold to an entity controlled by Jim Wiest, Managing
Director of CIG therefore the divestment constituted a related
party transaction under the AIM Rules. The Directors concluded,
having consulted with Investec acting in its capacity as the
Company's Nominated Adviser, that the terms of the sale were fair
and reasonable insofar as the Company's shareholders were
concerned.
Cash receipts from the sale consist of a distribution of US$1.0m
(GBP0.8m) received by the UK Group funded by a loan into CIG from a
third party plus US$0.5m (GBP0.4m) of further consideration paid in
two instalments, the first paid in April 2019 and the balance in
July 2019. The book and fair value of the net assets of CIG at the
date of sale were GBP0.59m, including cash of GBP0.55m, giving rise
to a profit on disposal of GBP0.6m
In the prior year, the Group ceased its Carbon activities on 10
January 2018 and, on 5 January 2018, it divested its holdings in
Camco Africa Limited (CAL) for a nominal amount. The book and fair
value of the net assets of CAL at the time of sale were GBPnil, so
the profit on the disposal was also GBPnil.
The above businesses constitute the discontinued operations in
these financial statements. Financial information relating to the
discontinued operations to the dates of their disposal / cessation
is set out below.
Results of the discontinued operations
H1 2019 H1 2018 FY 2018
(unaudited) (unaudited)
(audited)
GBP'000 GBP'000 GBP'000
Revenue 638 1,502 2,134
Expenses (669) (1,456) (2,135)
------------ ------------ -----------
Operating loss for the period (31) 46 (1)
Income tax charge (4) - -
------------ ------------ -----------
(Loss)/profit for the period (35) 46 (1)
Decrease in trade and other receivables 47 432 266
Increase in trade and other payables 50 157 134
------------ ------------ -----------
Net cash (used in)/from operating activities 62 635 399
------------ ------------ -----------
3 Share based payments
During the period, the Group operated share-based incentive
plans. The expense recognised in the period in respect to the plans
is set out below.
H1 2019 H1 2018 FY 2018 (audited)
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
redT Employee Share Plans 220 225 570
--------------- --------------- --------------------
4 Intangible assets and goodwill
Goodwill - Subsidiary acquisition (REDH)
H1 2019 H1 2018 FY 2018 (audited)
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Cost at 1 January 7,362 7,257 7,257
Effects of movements in foreign exchange (50) (28) 105
--------------- --------------- --------------------
Cost at end of period 7,312 7,229 7,362
--------------- --------------- --------------------
Intangible assets - R&D (REDH)
H1 2019 H1 2018 FY 2018 (audited)
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Cost at 1 January 6,129 6,046 6,046
Effects of movements in foreign exchange (39) (10) 83
--------------- --------------- --------------------
Cost at end of period 6,090 6,036 6,129
--------------- --------------- --------------------
Total Goodwill & Intangible Assets
H1 2019 H1 2018 FY 2018 (audited)
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Cost at 1 January 13,491 13,303 13,491
Effects of movements in foreign exchange (89) (38)
--------------- --------------- --------------------
Cost at end of period 13,402 13,265 13,491
--------------- --------------- --------------------
5 Inventory
H1 2019 (unaudited) H1 2018 FY 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Stock 343 234 393
Work in progress 151 1,192 130
Finished goods - 359 2
---------------------- --------------- -------------
494 1,785 525
---------------------- --------------- -------------
6 Prepayments and accrued income
H1 2019 (unaudited) H1 2018 FY 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Prepayments 283 850 371
Accrued income 121 139 255
---------------------- --------------- -------------
404 989 626
---------------------- --------------- -------------
7 Trade and other receivables
H1 2019 (unaudited) H1 2018 FY 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Trade receivables 113 332 373
Other receivables 226 364 186
---------------------- --------------- -------------
339 696 559
---------------------- --------------- -------------
8 Cash and cash equivalents
H1 2019 H1 2018 (unaudited) FY 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash 3.073 3,939 3,344
Restricted cash - 380 -
--------------- ---------------------- -------------
3.073 4,319 3,344
--------------- ---------------------- -------------
Restricted cash relates to an escrow account deposit to secure a
bank guarantee issued to a customer.
9 Trade and Other Payables
H1 2019 H1 2018 (unaudited) FY 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Trade payables (279) (452) (505)
Other accruals (563) (938) (1,028)
Other payables (14) - (34)
--------------- ---------------------- -------------
(856) (1,390) (1,567)
--------------- ---------------------- -------------
10 Deferred Income
H1 2019 H1 2018 (unaudited) FY 2018
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-current liabilities
Deferred income - (46) (35)
--------------- ---------------------- -------------
Current liabilities
Deferred income (276) (1,558) (173)
--------------- ---------------------- -------------
11 Loss per share
Loss per share attributable to equity
holders of the company is as follows:
H1 2019 H1 2018 FY 2018
(unaudited) (unaudited) (audited)
GBP pence GBP pence GBP pence
per share per share per share
Basic loss per share
From continuing operations (0.39) (0.89) (1.77)
From continuing and discontinued operations (0.39) (0.88) (1.77)
--------------- --------------- -------------
Diluted loss per share
From continuing operations (0.39) (0.89) (1.77)
From continuing and discontinued operations (0.39) (0.88) (1.77)
--------------- --------------- -------------
GBP'000 GBP'000 GBP'000
Loss used in calculation of basic and
diluted loss per share
From continuing operations (3,357) (6,050) (12,680)
From continuing and discontinued operations (3,392) (6,004) (12,681)
H1 2019 H1 2018 FY 2018
(unaudited) (unaudited) (audited)
Number Number Number
Weighted average number of shares used
in calculation
Number in issue at 1 January 791,219,132 653,923,424 653,923,424
Effect of shares issued in the year 73,658,244 28,541,409 64,847,915
--------------- --------------- -------------
Weighted average of basic shares at end
of period 864,877,376 682,464,833 718,771,339
Effect of share options granted not yet - - -
exercised which are not anti-dilutive
Weighted average number of diluted shares
at end of period 864,877,376 682,464,833 718,771,339
--------------- --------------- -------------
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the Group by the weighted average
number of ordinary shares in issue during the period.
Diluted loss per share is calculated by adjusting the weighted
average number of ordinary shares outstanding to assume conversion
of all dilutive potential shares. Where the inclusion of
potentially issuable shares decreases the loss per share
(anti-dilutive), the potentially issuable shares have not been
included. This was the situation for both the 2019 and 2018
calculations. The weighted average number of shares not included in
the diluted share calculation because they were anti-dilutive was
58,971,918 (HY 2018: 50,632,374, FY 2018: 44,361,763).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LFMFTMBITBIL
(END) Dow Jones Newswires
September 27, 2019 02:00 ET (06:00 GMT)
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