REG - AMTE Power PLC - Half Year Update
10/03/2022 07:01
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RNS Number : 2713E AMTE Power PLC 10 March 2022
10 March 2022
AMTE POWER PLC
Market-leading innovator and manufacturer of advanced battery cells for the
global
Energy Storage and Automotive Markets
Half Year Update
Business on clear evolutionary pathway to commercialisation
Kevin Brundish, CEO of AMTE Power said:
"A year on from listing we have used our proven cell manufacturing expertise
to forge our clear pathway to full commercialisation as the market leader in
advanced battery cells focusing on the huge global markets of energy storage
and high-performance automotive sectors. We have invested in ongoing
development, increased cell production rates, and developed commercial
relationships and partnerships as well as refined our plans during the past
six months. We anticipate that significant milestones will be achieved during
2022.
AMTE is an exciting, commercially advanced business, with a depth of
operational expertise and management know-how to deliver on its plans and
looks forward to engaging with key stakeholders as we achieve important steps
in the business' evolution."
Update on achievements and milestones:
· Battery cell development continues at pace - both the Ultra
Energy (UE) cell and Ultra High Power (UHP) cell currently undergoing
significant scale up and testing trials at the UK Battery Industrialisation
Centre ("UKBIC") where the UK Government has invested £130m into a high-rate
cell production facility.
o AMTE was one of the first to take advantage of this facility as part of
the scale up of its products in advance of commercialisation, commencing work
there in 2021.
o Trials using Gigascale production equipment have achieved goals, looking
to raise the bar further.
o Continued leveraging of opportunities from manufacturing know-how at
AMTE's unique Thurso production facility with production rates increasing
during the period and planning permission granted to extend this site and
capability.
o Ultra Storage our LFP cell, Ultra Prime and Ultra Safe cells continue to
hit development milestones.
· Development and commercial partnerships maturing to active
commercial discussions.
o Named development and steering committee partners include BMW, Arrival,
QinetiQ, Faradion.
o Initial commercial supply opportunities equivalent to 6 GWh.
o First commercial contract for Ultra Safe sodium-ion cells with AceOn
announced today.
· AMTE continues to progress and underpin its plans for a new
Gigafactory.
o Three potential sites have been identified in the UK, with engagement
underway with local authorities and design development.
o Medium term scope increased to 10 GWh in a modular approach.
o A final decision on Gigafactory site selection is expected in 2022, with
commercial production in 2025.
o Continued discussions with the Automotive Transformation Fund and Advanced
Propulsion Centre regarding government funding to support Gigafactory
development.
· Successful launch of Australian joint venture with InfraNomics.
o AMTE to licence Ultra Storage cell to joint venture company, Bardan Cells.
o Proposed factory has initial target of 200,000 cells per annum with plan
to scale to 2GWh.
o Negotiations with equipment suppliers nearing completion, and site
selection, equipment ordering and ground-breaking all expected in 2022. Bardan
work expected to provide valuable learning experience and underpin UK
Gigafactory build.
o Joint venture gives AMTE access to Australia's more mature renewables
energy storage market.
AMTE Power qualified for Green Economy Mark Status on Admission:
· 50% of revenues contribute to global green economy.
· Business is at heart of the Green Industrial Revolution in UK and
global energy transition.
Market trends - significant growth opportunities from energy transition
· Energy Storage:
o Demand for Energy Storage Systems expected to grow 21% p.a. from 23 GWh
p.a. in 2020 to 155 GWh p.a. in 2030. Globally there is expected to be a $262
billion cumulative investment between 2021 and 2030 (Bloomberg NEF 2019 &
21).
o Legislative backdrop: reliance on fossil fuels is decreasing (UK Future
Homes and Buildings Standard 2025).
· Automotive:
o The global automotive battery market is forecast to grow to $103bn by
2030, a CAGR of 6.57% from its 2021 size of $44bn in 2021 (Bloomberg NEF 2019
& 21).
o By 2030 UK is expected to need 90 GWh per hours p.a. batteries for cars
and light commercial vehicles, 11% of total demand across Europe. (APC)
o Estimated market size of 91 GWh in Europe targeted by AMTE's UE cell and 5
GWh for power cells (1 GWh of which is for Fuel Cell Electric Vehicles)
targeted by AMTE's UHP cell . (Exawatt)
Half Year Financial Performance reflects continued investment in
commercialisation plans:
· Turnover of £0.81 million up 31% (H1:2021: £0.62 million).
· Loss before tax of £2.65 million (H1 2021: loss £1.46 million)
· Balance sheet strength underpins investment phase:
o Cash and cash equivalents of £6.26 million (H1 2021: £0.22 million).
Outlook
· UHP cell expected to achieve Gigafactory production rates at
UKBIC
· Ultra Safe cell on track to be released in 2022
· Announcement of Gigafactory site in 2022 to support a ramp up in
production, to meet growing demand driven by the global energy transition.
· As a result of refining product development, scale up, and
increasing operational capacity, we expect reduced revenue and a moderate
impact on loss before tax over the next two years.
· Conversion of MoUs into supply contracts in energy storage
markets, in addition to existing contract, in support of accelerated build out
of production capacity.
· Continue our transition towards high volume production.
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.
Enquiries:
AMTE Power plc Tel: +44 (0)1847 867 200
Kevin Brundish (Chief Executive Officer)
James Hobson (Chief Financial Officer)
WH Ireland Limited (NOMAD and Joint Broker) Tel: +44 (0)207 220 1666
Chris Fielding / Ben Good
SI Capital Limited (Joint Broker) Tel: +44 (0)1483 413 500
Nick Emerson / Nick Briers
Camarco Tel: +44 (0)20 3757 4992
Ginny Pulbrook / Tom Huddart / Rosie Driscoll
CEO Statement
Introduction
AMTE operates in specialist markets with huge growth potential. We are
continuing to evolve and grow as we progress towards the full
commercialisation of our battery cells. The Company is at the heart of the
Green Industrial Revolution in the UK and part of wider-macro trends as the
world seeks to decarbonise ahead of the legally binding 2050 Paris Agreement.
Our Key Markets
AMTE Power is a market-leading, technology-led, rapidly scaling developer and
manufacturer of battery cells for the net zero economy. We have and continue
to operate in specialist markets with huge growth potential. Currently, AMTE
has a historic offtake agreement with a market leading specialist in telemetry
systems to produce up to 1 million Ultra Prime cells per annum worth up to
£50 million per annum by 2028. Whilst our core focus areas are the energy
storage and automotive sectors, this contract has enabled AMTE to develop
specialist knowhow to provide cells for wireless battery packs.
Energy storage
Renewable power generation has grown significantly in recent decades, but
another leap forward is needed to hit countries' climate change pledges to be
net zero by 2050. In the UK specifically the Prime Minister announced an
ambition last year for clean sources to generate 100% of electricity by 2035.
With renewables' share of generation in the UK currently between 35 and 40%,
we are going to require a huge amount of battery storage. To achieve scale in
the battery storage market, the UK Government relaxed planning legislation in
2020 to make it easier to construct large batteries to store renewable energy
from solar and wind farms across the UK.
Looking further afield, the Bloomberg New Energy Finance Global Energy Storage
Outlook 2021 estimates that globally there will be a $262 billion cumulative
investment between 2021 and 2030 in energy storage. By 2050 that increases
to $100 trillion investment expected in energy infrastructure for the clean
energy transition.
These are huge numbers that demonstrate AMTE is operating in a sector with
very strong growth fundamentals. AMTE has generated a range of opportunities
in this market sector, with potentially fast route to markets, in addition to
opportunities through the joint venture in Australia.
Australia is one of the most mature energy storage markets in the world. In
its latest report, IHS Markit predicts that energy storage installations in
Australia will grow from 500 MW to more than 12.8 GWh by 2030. Today,
Australia makes up less than 3% of total global installations for battery
energy storage and is the seventh largest market globally. By 2030, it is
forecast to comprise 7% of global installations and become the third largest
market.
Automotive
The UK and the global electricity markets are going to see an exponential
growth in the number of battery cells and technology over the coming years.
One of the key sectors within that is the automotive industry. The global
automotive battery market is forecast to grow to $103bn by 2030, a CAGR of
6.57% from its 2021 size of $44bn in 2021. To meet automotive supply chain
needs, major international battery cell manufacturers are pouring billions
into the construction of Gigafactories, given anticipated demand for
lithium-ion batteries (ten-year CAGR of 25%), to fuel the expected passenger
and broader automotive hybrid/EV revolution.
AMTE is at the heart of this revolution, investing in specialised, yet also
significant, markets within the space, notably where superior battery cell
performance is required.
AMTE's Ultra Energy (UE) cell is the subject of 94 automotive opportunities,
with 43 of these each averaging 1,000,000 cells per annum, equating to roughly
2,000 electric vehicles per opportunity and a potential capacity of 6 GWh.
Our Ultra High Power (UHP) pouch cell has 26 commercial opportunities each
with an average of 270,000 cells per annum. This gives a potential capacity of
0.28 GWh.
Operational Review
The framework agreement with the publicly funded UK Battery Industrialisation
Centre ("UKBIC") is performing well and supports our planned scale-up of
our UHP and UE cells. This is an important step in demonstrating that AMTE
Power's products can be manufactured at a speed consistent with Gigafactory
rates of production ("Gigapace") and are ready for commercial production.
In December we undertook trials at the UKBIC for the UE cells as planned, to
scale up production rates and now plan to certify the cells generated at a
higher level of production rate. UHP is currently in scale up trials in the
UKBIC and we are moving towards certification as we continue to refine high
volume production rates. As a result of refining product development, scale
up, and increasing operational capacity, we expect reduced revenue and a
moderate impact on loss before tax over the next two years.
Underpinning the work in the UKBIC is AMTE's existing knowhow and production
facility at Thurso. This is a key differentiator that gives us an operational
advantage. Ultra Storage, Ultra Prime and Ultra Safe cells continue to hit
development milestones. We also continue to utilise our Thurso factory to work
with BMW and Arrival in the Ultra Project, a government initiative to progress
EV development.
AMTE's plans for a Gigafactory are progressing. Three sites have been selected
and initial engagement has continued with local authorities, designers and
investment banks. Commercial scale cell production is initially targeted at
2 GWh with the scope increased to 10 GWh using a modular approach. A final
decision on site selection is expected by the end of 2022, with commercial
take-up in 2025.
AMTE has gained access into the Australian storage market via its joint
venture entity, Bardan Cells. Bardan will produce AMTE's energy storage cells
in a proposed factory initially targeted at 200,000 cells per annum, with
plans to scale to 2 GWh. Progress is at pace, and the expectation is to select
a site, order equipment and break ground this year.
As AMTE continues to grow we continue to expand the team to ensure skills
availability ahead of production expansion to Gigafactory levels. This
includes investing in key resources and infrastructure to strengthen the
Group's capabilities including internal legal counsel, supply chain and
finance teams.
Our sustainability strategy continues to be developed with the aim of
accreditation against the internationally recognised standard PAS 2060 Carbon
Neutrality. As part of this strategy, we have also signed a number of
Memorandums of Understanding for the recycling of our products to reduce the
carbon output during the lifecycle of the cell.
Financial Review: half year to ended December 2021
During the six-month period under review the Group is reporting turnover of
£0.81 million up 31% (H1 2021: £0.62 million), £0.65 million (H1 2021:
£0.31 million) of which was grant income. Commercial income for the period
was £0.17 million (H1 2021: £0.31 million) reflecting the focus on battery
development rather than external contracts during the period. The Group loss
before tax was £2.65 million (H1 2021: loss of £1.45 million).
These results reflect investment in product development and marketing to
support the Group's increasing steps towards full commercialisation of its
battery cell technologies, both in the UK and Australia.
Our balance sheet remains strong, with cash and cash equivalents of £6.26
million (H1 2021: £0.2m).
Conclusion and Outlook
We have continued our investment as we have increased cell production rates,
developed commercial relationships and partnerships as well as refined our
plans during the past six months. We anticipate that significant milestones
will be achieved during 2022.
We are excited for the current year; we are pleased with our progress and
expansion towards Gigafactory production rates. We are also excited to have
announced today our first commercial contract for Ultra Safe sodium-ion cells
with AceOn. We are in a strong position in the market, with a depth of
operational expertise and management know-how to deliver on our plans.
I would like to thank all of the AMTE team for their hard work and dedication
as we continue on our path to commercialisation and contribution to the global
green deal agenda.
Kevin Brundish
Chief Executive Officer
AMTE Power Plc
Consolidated Statement of Comprehensive Income
For the Period Ended 31 December 2021
Unaudited Audited
6 months ended 6 months ended Year ended
31 December 2021 31 December 2020 30 June
2021
£ £ £
Turnover 815,174 623,536 1,967,348
Turnover analysed by class of business:
Revenue 162,371 309,487 687,287
Grant income 652,803 314,049 1,280,061
Cost of sales (780,966) (460,782) (1,645,708)
Gross profit 34,208 162,754 321,640
Other operating income 143,887 88,356 461,396
Administrative expenses (2,729,257) (1,565,838) (4,374,028)
Operating loss (2,551,162) (1,314,728) (3,590,992)
Investment revenues 26,226 1,169 27,576
Finance costs (120,991) (142,110) (245,893)
Loss before taxation (2,645,927) (1,455,669) (3,809,309)
Income tax expense (8,130) 45,926 104,794
Loss and total comprehensive income for the period (2,654,057) (1,409,743) (3,704,515)
Basic loss per share (pence per share) 7 (7.47) (5.33) (12.59)
Diluted loss per share (pence per share) 7 (7.47) (5.33) (12.59)
All results were derived from continuing operations.
AMTE Power Plc
Consolidated Statement of Financial Position
As at 31 December 2021
Unaudited Audited
Notes 31 31 30
December 2021 December 2020 June 2021
£ £ £
Restated
Non-current assets
Intangible assets 5 22,552,109 19,438,264 20,998,109
Property, plant and equipment 6 2,187,527 2,163,336 2,235,439
Investments 41,163 2 23,626
24,780,799 21,601,602 23,257,174
Current assets
Inventories 363,555 231,755 280,666
Trade and other receivables 1,953,071 1,151,471 1,823,505
Current tax recoverable 361,500 142,469 240,000
Cash and cash equivalents 6,264,710 221,218 9,272,416
8,942,836 1,746,913 11,616,587
Current liabilities
Borrowings (5,636) (20,349) (20,365)
Lease liabilities (115,667) (114,060) (147,453)
Licence liabilities (830,229) (575,177) (676,191)
Derivative financial instruments (7,002) (28,249) (11,466)
Trade and other payables (1,151,565) (1,006,769) (957,540)
Deferred revenue (28,564) (28,564) (28,564)
(2,138,663) (1,773,168) (1,841,579)
Net current assets 6,804,173 (26,255) 9,775,008
Non-current liabilities
Borrowings (75,636) (85,509) (75,636)
Lease liabilities (817,993) (937,328) (853,465)
Licence liabilities (16,766,525) (15,184,713) (16,188,357)
Long-term provisions (209,495) (208,687) (209,082)
Deferred revenue (2,421,131) (2,178,862) (2,299,682)
(20,290,780) (18,595,099) (19,626,222)
Net assets 11,294,192 2,980,248 13,405,960
EQUITY
Called up share capital 179,943 337 176,223
Share premium account 21,662,570 8,983,314 20,808,951
Share option reserve 505,625 102,680 821,641
Retained earnings (11,053,946) (6,106,083) (8,400,855)
Total equity 11,294,192 2,980,248 13,405,960
AMTE Power Plc
Consolidated Statement of Changes in Equity
For the Period Ended 31 December 2021
Share Share Share option reserve Retained earnings Total equity attributable to owners of the parent
capital premium
£ £ £ £ £
Audited balance at 1 July 2020 321 8,067,562 128,052 (4,733,051) 3,462,884
Loss and total comprehensive income - - - (1,409,743) (1,409,743)
Credit to equity for equity settled share-based payments - - 32,285 - 32,285
Issue of share capital 15 860,085 - - 860,100
Exercise of share options 1 55,667 (20,946) - 34,722
Share option forfeit - - (36,711) 36,711 -
Unaudited balance at 31 December 2020 as restated 337 8,983,314 102,680 (6,106,083) 2,980,248
Loss and total comprehensive income - - - (2,294,772) (2,294,772)
Credit to equity for equity settled share-based payments - - 947,099 - 947,099
Issue of share capital 38,446 12,917,254 - - 12,955,700
Exercise of share options 2,892 678,690 (265,066) - 416,516
Bonus issue 134,548 (134,548) - - -
Cost of share issues - (1,598,831) - - (1,598,831)
Warrant expense in the period - (36,928) 36,928 - -
Audited balance at 30 June 2021 176,223 20,808,951 821,641 (8,400,855) 13,405,960
Loss and total comprehensive income - - - (2,654,057) (2,654,057)
Exercise of share options 3,720 853,619 (331,693) - 525,646
Share option forfeit - - (966) 966 -
Credit to equity for equity settled share-based payments - - 16,643 - 16,643
Unaudited balance at 31 December 2021 179,943 21,662,570 505,625 (11,053,946) 11,294,192
AMTE Power Plc Unaudited Audited
Consolidated Statement of Cashflows
For Period Ended 31 December 2021
6 months ended 6 months ended Year
31 December 2021 31 December 2020 ended
30 June 2021
£ £ £
Cash flow from operating activities
Loss after taxation (2,654,057) (1,409,743) (3,704,515)
Adjustment for:
Taxation charge 8,130 (45,926) (104,794)
Taxation charge - RDEC included in operating income (129,630) (74,074) (172,334)
Finance costs 120,991 114,220 245,893
Investment income (21,762) (1,169) (27,576)
Fair value movement on derivatives (4,464) 27,890 7,743
Depreciation of property, plant and equipment 181,320 160,870 328,537
Amortisation of intangible assets 76,275 65,999 140,562
Decrease in provisions 413 - 773
Deferred income released to P&L (14,257) (14,282) -
Share-based payment expense 16,643 32,285 979,387
Changes in working capital:
Increase in inventories (82,889) (12,622) (61,533)
Increase in trade and other receivables (443,094) (262,351) (462,456)
Increase in trade and other payables 193,778 373,782 292,312
Cash absorbed by operations (2,752,603) (1,045,121) (2,538,001)
Interest paid (48,442) (56,076) (111,362)
Income tax refunded - 74,074 37,128
Net cash (outflow) from operating activities (2,801,045) (1,027,123) (2,612,235)
Cash flow from investing activities
Purchase of intangible assets (529,121) (451,292) (712,215)
Purchase of property, plant and equipment (133,408) - (252,174)
Government grants received 135,707 295,053 430,155
Interest received 4,225 1,169 3,952
Net cash used in investing activities (522,597) (155,070) (530,282)
Cash flow from financing activities
Proceeds from issue of own shares 839,173 915,768 12,325,120
Repayment of borrowings (14,729) (19,581) (29,438)
Payment of lease obligations (67,258) (56,233) (106,703)
Payment of licence obligations (441,250) (386,112) (723,615)
Net cash from financing activities 315,936 453,842 11,465,364
Net (decrease)/increase in cash and cash equivalents (3,007,706) (728,351) 8,322,847
Cash and cash equivalents at beginning of the period 9,272,416 949,569 949,569
Cash and cash equivalents at end of period 6,264,710 221,218 9,272,416
AMTE Power Plc
Consolidated Statement of Cashflows
For the Period Ended 31 December 2021
Changes in liabilities arising from financing activities:
At 1 July 2020 Financing cash flows Inception Non-cash interest At 31 December 2020
£ £ £ £ £
Borrowings 125,439 (19,581) - - 105,858
Lease liabilities 1,107,621 (56,233) - - 1,051,388
Licence liabilities 15,096,055 - 1,049,947 15,759,890
(386,112)
16,329,115 (461,926) - 1,049,947 16,917,136
At 1 January 2021 Financing cash flows Inception Non-cash interest At 30 June 2021
£ £ £ £ £
Borrowings 105,858 (9,857) - - 96,001
Lease liabilities 1,051,388 (50,470) - - 1,000,918
Licence liabilities 15,759,890 (337,503) 328,861 1,113,300 16,864,548
16,917,136 (397,830) 328,861 1,113,300 17,961,467
At 1 July 2021 Financing cash flows Inception Non-cash interest At 31 December 2021
£ £ £ £ £
Borrowings 96,001 (14,729) - - 81,272
Lease liabilities 1,000,918 (67,258) - - 933,660
Licence liabilities 16,864,548 (441,250) - 1,173,456 17,596,754
17,961,467 (523,237) - 1,173,456 18,611,686
1. General information
AMTE Power plc is a public company incorporated in the England and Wales. The
address of its registered office is Suite 1, 3rd Floor 11-12 St. James's
Square, London, United Kingdom, SW1Y 4LB.
AMTE Power Plc develops a range of lithium-ion and lithium-ion derivative
battery cells to meet the needs of specialist customers. Such customers, which
include manufacturers of high-performance vehicles, energy storage solutions
and specialist engineering equipment, are not the primary focus of the
international battery cell manufacturers and thereby offer a significant and
scalable opportunity for the Group.
2. Accounting policies
2.1. Basis of preparation
The financial information set out in these interim consolidated financial
statements for the six months ended 31 December 2021 is unaudited. The
financial information presented are not statutory accounts prepared in
accordance with the Companies Act 2006, and are prepared only to comply with
AIM requirements for interim reporting. Statutory accounts for the year ended
30 June 2021 on which the auditors gave an audit report which was unqualified
and did not contain a statement under Section 498(2) or (3) of the Companies
Act 2006, have been filed with the Registrar of Companies. The annual
financial statements of the Group are prepared in accordance with UK-adopted
International Accounting Standards (IAS).
The interim consolidated financial statements have been prepared using
consistent accounting policies as those adopted in the financial statements
for the year ended 30 June 2021.
2.2. Basis of consolidation
The interim condensed consolidated group financial statements consist of the
financial statements of the parent company AMTE Power Plc together with all
entities controlled by the parent company (its subsidiaries) and the group's
share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2021. Where necessary,
adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used into line with those used by other members of the
group.
All intra-group transactions, balances and unrealised gains on transactions
between group companies are eliminated on consolidation. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of
the asset transferred.
Subsidiaries are consolidated in the group's financial statements from the
date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled
by the group and one or more other venturers under a contractual arrangement
are treated as joint ventures. Entities other than subsidiary undertakings or
joint ventures, in which the group has a participating interest and over whose
operating and financial policies the group exercises a significant influence,
are treated as associates.
Investments in joint ventures and associates are carried in the group at cost
plus post-acquisition changes in the group's share of the net assets of the
entity, less any impairment in value. The carrying values of investments in
joint ventures and associates include acquired goodwill.
If the group's share of losses in a joint venture or associate equals or
exceeds its investment in the joint venture or associate, the group does not
recognise further losses unless it has incurred obligations to do so or has
made payments on behalf of the joint venture or associate.
2.3. Going Concern
The Directors have considered all factors, including in COVID-19, as part of
their assessment of going concern. They have prepared a cash flow forecast for
the period ending 30 June 2023 and performed sensitivities to ensure that the
cash was sufficient for the going concern opinion. These sensitivities were
based on a potential rise in costs across the business and lower than expected
prototype and product sales as a result of delays in product development.
The Group expects to remain cash positive without the requirement for further
fund raising based on delivering the existing strategy for a period of at
least 12 months from the date of approval of these interim financial
statements.
The Group currently consumes cash resources and will continue to do so until
sales revenues are sufficiently high to generate net cash inflows. It is
therefore currently dependent on its shareholders for support. In previous
years this has been forthcoming from both its existing and new shareholders.
After making appropriate enquiries, the Directors of the Group have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus, the Directors continue
to adopt the going concern basis of accounting in preparing the interim
financial statements.
3. Segmental analysis
Operating segments are determined by the chief operating decision maker based
on information used to allocate the Group's resources. The information as
presented to internal management is consistent with the statement of
comprehensive income. It has been determined that there is one operating
segment, the development of battery cells. In the periods covered in the
interim condensed consolidated financial information, the Group operated
mainly in the United Kingdom. All non-current assets are located in the United
Kingdom.
4. Intangible fixed assets
The Group's intangible fixed assets, which include development battery cells
and IP rights, had additions of £1,811,839 in the six months to 31 December
2021 (six months to 31 December 2020: £1,622,552; 12 months to 30 June 2021:
£3,392,387).
The Group capitalised the development costs relating to the products it is
developing, in line with IAS 38, however it has not yet amortised the costs.
The Group also records the value of the IP rights it holds through licences.
The amortisation of the IP rights and the interest arising from the licence
obligations has been capitalised into the intangible assets (development
battery cells) whilst the battery cells are being developed. Amortisation of
IP rights was £257,836 (six months to 31 December 2020: £245,427; 12 months
to 30 June 2021: £455,417).
No impairments of intangible assets were made.
5. Property, plant and equipment
There were no significant movements on tangible fixed assets over the period
of the interim accounts.
6. Right-of-use assets
The Group has lease contracts for buildings and equipment used in its
operations, which have the following lease terms:
· Leased equipment has terms of between 3 and 5 years,
· Property leases have terms of under 3 years in the case of office
space near Oxford and for 10 years for the manufacturing facility in
Thurso,
· The sub-lease has a duration of under 3 years.
There were no additions to the Right-of-use assets for the six months to 31
December 2021 (six months to 31 December 2020: £nil; 12 months to 30 June
2021: £nil). The charge for depreciation was £87,445 (six months to 31
December 2020: £87,441; 12 months to 30 June 2021: £174,887).
7. Earnings per share
The calculation of the basic loss per share is based on the following data:
Number of shares 6 months ended 6 months ended Year
31 December 2021 31 December 2020 ended
30 June 2021
Weighted average number of ordinary shares for diluted earnings per share 35,535,654 26,440,220 29,422,110
In all periods presented the Group has incurred losses and as such has not
presented any dilutive shares in accordance with IAS 33 'Earnings per
share'. However, the Group does have a number of share options and warrants
that would dilute the earnings per share should the Group become profitable.
Earnings (all attributable to equity shareholders of the Company) 6 months ended 6 months ended Year
31 December 2021 31 December 2020 ended
30 June 2021
£ £ £
Loss for the period from continued operations (2,654,057) (1,409,473) (3,704,515)
Earnings per share for continuing operations
Basic earnings per share (pence per share) (7.47) (5.33) (12.59)
Diluted earnings per share (pence per share) (7.47) (5.33) (12.59)
8. Prior period restatement
For the six-month period ended 31 December 2020 equity has been restated for
an amount of £23,790 to correct the allocation of the share-based payment
expense and option forfeitures in this period. The allocations were corrected
by the year ended 30 June 2021 however the timing split between the two halves
of the year were misstated in the prior year interim accounts.
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