REG - Aurrigo Int PLC - Full Year Results
17/05/2023 07:17
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RNS Number : 6481Z Aurrigo International PLC 17 May 2023
17 May 2023
Aurrigo International plc
Full year results for year ended 31 December 2022
Good progress since IPO - foundations laid for future growth
Aurrigo International plc (AIM: AURR, the "Company" or "Aurrigo"), a leading
international provider of transport technology solutions, reports its full
year results for the year ended 31 December 2022.
Highlights
· Autonomous and Aviation division signed multi-year partnering
agreement with Changi Airport Group (Singapore) Pte Ltd ('CAG') for continued
joint development of Auto-Dolly, Auto-DollyTug and Auto-Sim
· Automotive division also saw good activity levels, particularly
amongst new potential customers
· Headcount increased at all levels, expanding the team from 50 at
IPO to 78 as at end April 2023
· Established full-time teams in North America and Singapore
offices
· Continued investment in R&D, with the development of the
Auto-Dolly MK3 and Auto-DollyTug MK3
· Continued IP generation with patents granted
· Revenues of £5.3m, with Adjusted EBITDA loss of £0.9m
· Cash of £5.4m at period end, strong cost controls in place
Outlook
· Momentum of 2022 continuing into 2023, with industry partnerships
and grant-funded projects signed in Autonomous and Aviation and good customer
traction across Automotive
· Investment in sales and marketing, alongside the CAG partnership,
resulting in encouraging potential customer engagement globally
· Rapid recovery of global aviation to almost pre-pandemic levels,
with demand for better efficiencies and solutions for staff shortages,
underpins Aurrigo's key growth drivers
· In a strong position to continue to deliver on the opportunities
presented at IPO, particularly in Aviation
David Keene, CEO of Aurrigo, commented:
"We delivered an exciting year of progress in 2022 with the IPO, fundraising
and partnership agreement with Changi Airport Group laying the foundations for
our future growth. Since joining AIM, we have scaled our team, developed new
vehicles and are now rapidly building a leadership position in autonomous
aviation solutions."
"The momentum of 2022 has continued into 2023. We are now demonstrating and
proving our autonomous aviation products on the ground which we believe will
translate into new long-term partnerships."
"With the rapid recovery of the global aviation industry driving the need for
efficiencies and automation, we are well positioned to continue to deliver the
growth outlined at IPO."
For further enquiries:
Aurrigo International plc +44 (0)2476 635818
David Keene, Chief Executive Officer
Ian Grubb, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Sole Broker) +44 (0)20 7496 3000
Phil Davies, Rick Thompson, George Tzimas, Jalini Kalaravy
Instinctif Partners (Financial Communications) +44 (0)20 7457 2020
Rozi Morris, Tim McCall, Isadora Pegler aurrigo@instinctif.com
About Aurrigo
Aurrigo is a leading international provider of transport technology solutions.
Listed on the London Stock Exchange's AIM Market (AIM: AURR) and headquartered
in Coventry, UK, it designs, engineers, manufactures and supplies OEM products
and autonomous vehicles to the automotive and transport industries. It is
highly regarded as a specialist in autonomous and semi-autonomous technology
solutions for the aviation, ground handling and cargo industries.
Aurrigo has three divisions, Automotive Technology, Autonomous Technology and
Aviation Technology. For more information, see www.aurrigo.com
(http://www.aurrigo.com)
CHAIR'S STATEMENT
I am delighted and privileged to present Aurrigo International plc's maiden
full year results as a public company following our successful IPO on AIM in
September 2022. It is also my first as Chair, since joining Aurrigo as an
adviser in 2021.
Our IPO has already begun to deliver a number of strategic benefits to the
Company, supporting our investment in product development and expanding our
team to pursue new market opportunities. We begin life as a public company in
a position of financial strength - delivering revenues in line with
expectations of £5.3m, with a robust balance sheet and a solid cash position.
As a quoted company, we operate with a high level of integrity, transparency
and strong governance that we know our investors, customers, partners and
colleagues value.
Key achievements
The biggest achievement of the year was our successful IPO and fundraise in
what were very challenging market conditions - a real testament to the great
technology, sound business and talented team we have at Aurrigo, combined with
a passion to succeed from the senior leadership team. It gives us a solid
platform for growth and the whole team are proud to now be delivering on what
we set out at IPO.
With the funding in place, Aurrigo is in a great position to deliver on our
planned projects and opportunities, particularly in the aviation space,
introducing autonomous solutions which can improve efficiencies, staffing
shortages and sustainability for airport operations globally.
Building on this, in October 2022, we announced an agreement with Changi
Airport Group (Singapore) Pte Ltd (CAG), for the next phase of development of
the Auto-Dolly, and post period end, in February 2023, we signed a formal
partnership with CAG for the joint development and testing of our autonomous
vehicles and our airport simulation software. This is a great platform from
which to engage not only CAG, but other airports and airlines and we look
forward to further opportunities arising from this.
Financial
Following our fundraise, Aurrigo is well capitalised for its current needs,
with a cash balance of £5.4m at period end and delivering £5.3m of revenues,
with an Adjusted EBITDA loss of £0.9m. We continue to efficiently manage
costs whilst also exploring non-dilutive funding for some projects,
particularly grant funding.
Our people
2022 was a year for ensuring solid foundations for future growth at Aurrigo,
with our culture, values purpose and people a key focus.
Since IPO, Aurrigo has been able to grow its dedicated and experienced team,
expanding its personnel from 50 at IPO to 78 as at the end of April 2023, with
the aim and need of reaching around 100 staff by the end of 2023. We have
particularly expanded our sales, marketing and engineering capabilities,
together with senior positions, including hiring an experienced HR Director.
The journey ahead will be to continue to embed our values into business as
usual.
Leadership
Our established senior leadership team have extensive experience across
automotive engineering and manufacturing, as well as the robotic and
autonomous industries. Alongside their technical capability is a proven
ability to grow the Company, successfully developing new products and entering
new geographies.
Since IPO, we have established a new Board of Directors, which involves
experienced industry executives Penny Coates, Joseph Elliott, Lewis Girdwood
and myself as non-executive Directors, alongside the executive team. We aim to
further enhance the profile and credibility of the Company's business and
services, given our respective extensive experience across the aviation and
automotive sectors.
Corporate Governance
The Board is fully committed to its obligation individually and collectively
to act in good faith to seek to promote the success of the company for the
benefit of its shareholders as a whole and the interests of other
stakeholders. Further details of our approach are set out in our annual
report.
Outlook
Aurrigo begins 2023 with excellent momentum and a clear strategy for growth,
building on the revenue growth and key partnerships it is seeing following
IPO.
We remain on-track to deliver the key phases of growth outlined at IPO. Our
initial development agreement with CAG has progressed well, with the vehicles
delivered and now testing on the ground, on-schedule. The formal post-period
end partnership with CAG now takes us to the next stage, progressing from
prototype testing and also showcasing our capabilities to other airport groups
and airlines.
The rapid recovery of the aviation sector to almost pre-pandemic levels during
2022 continues to reinforce industry demand for efficiencies, decarbonisation
and solutions to staff shortages. This continues to underpin Aurrigo's growth
drivers in aviation and our pipeline of opportunities.
Lastly, I would like to thank our staff for their dedication and support as we
took the step of listing the business on AIM. Thank you to our founders,
David and Graham Keene for having the vision on which the business was built
and now celebrates 30 years of success. Thanks also to our investors and
customers who share in that vision.
Andrew Cornish
Non-Executive Chair
17 May 2023
CEO REPORT
2022 was a transformational year for Aurrigo. With our successful IPO on AIM
in September 2022, we were able to raise the funds needed to invest in our
innovative technology, develop our market position and grow our dedicated
team. We delivered a strong operational and financial performance for the
year, in line with market expectations and are proud to be achieving what we
set out at the time of the IPO; increasing our headcount, building our Company
profile and realising the growth potential of the autonomous aviation
division.
Overview
Aurrigo has a strong heritage of automotive expertise, alongside valuable
design capabilities. It has supplied leading vehicle manufacturers and
Tier 1 suppliers for 30 years, including Aston Martin, Bentley, Jaguar, Land
Rover, McLaren and Rolls Royce. Our consistent delivery of high-quality
products has built long-term customer relationships.
We have created award winning, industry leading autonomous vehicles by
investing in our proprietary products and software. Aurrigo has developed and
owns all IP relating to our autonomous vehicle technology and we continue to
invest in the research and development of products and software to maintain a
market leading position.
Aviation is a key growth area for Aurrigo's autonomous vehicle technology,
with long term structural drivers. The global airline industry is seeking to
improve its processes, tackle workforce shortages and reduce the environmental
impact of operations, and these trends will increase demand for smart and
sustainable solutions, offering significant future growth
opportunities. This, coupled with our proprietary airport planning software
tool and autonomous vehicle fleet management system, gives Aurrigo a
significant competitive advantage.
Customers and partners
As well as supplying leading vehicle manufacturers and Tier 1 suppliers, we
have developed autonomous vehicles for the aviation industry and engaged with
British Airways, Changi Airport Group, Gerald R. Ford International Airport
(USA) and International Airlines Group. In addition, Aurrigo has
partnerships with academic institutions including the University of Warwick,
University of Coventry, Aston University, University of Galgotias and the
University of Ottawa to further develop and validate its technology.
In October 2022, we signed an agreement with Changi Airport Group for the next
phase of development of the Auto-Dolly, our innovative baggage transportation
solution for airports. This involved trialling the Auto-Dolly on the ground at
Changi Airport.
Post period-end, in February 2023, we signed a formal partnership with Changi
Airport Group for the continued joint development and testing of our
autonomous vehicles, Auto-Dolly and Auto-DollyTug and our airport simulation
software platform, Auto-Sim. The multi-year partnership agreement with Changi
Airport Group provides an opportunity for further development of our
autonomous solutions at the airport and, in addition, the ability to showcase
the technology to other visiting global airport groups and
stakeholders. Potential customers have responded well to seeing the vehicles
in action and the demonstration of their full range of capabilities and
potential will continue to be key, particularly as we trial the next
generation of vehicles such as the Auto-Dolly Tug MK3.
There has been significant positive engagement with other airport groups, both
for Auto-Dolly and Auto-Sim, our airport design, development, simulation and
modelling tool and we anticipate signing additional aviation customers over
the next 12 months.
Industry position
Our Automotive division continues to maintain its leadership position in
supplying key components and design to the automotive industry.
Our Autonomous and Aviation division is rapidly building its own leading
position, particularly within the use of autonomous and electric vehicles
within the aviation industry. This has involved participating in and speaking
at key industry conferences and roundtables, engaging with sector stakeholders
and policymakers as well as potential customers.
With global air traffic recovering towards pre-pandemic levels during 2022,
and a full recovery expected during 2023 (IATA estimates), the drivers for our
aviation offering continue to be fundamentally strong. There is a continuous
industry focus on efficiencies, solutions for staff shortages and reducing the
environmental impact of aviation through the use of electric vehicles.
Innovation
Our strong focus on innovation and R&D continues, with the next generation
of Auto-Dolly and Auto-DollyTug nearing completion. These vehicles are being
developed as a modular system with a particular focus on the requirement to
deliver commercial scale products in the short to medium term. Following
feedback from our partners, significant improvements have also been made with
new features including automated Unit Load Device (ULD) loading and
unloading, towing additional ULD's on trailers, sideways movement and ride
height control as well as enhanced battery capacity and faster charging times.
Post period-end, the Company signed an Industry Innovation Collaboration
Agreement with the University of Ottawa in Canada and also agreed to work
closely with the University of Galgotias in India. We continue to develop
opportunities with academia and industry partners for the development and
demonstration of our autonomous technology solutions building on our national
and international relationships within the aviation and autonomous sectors.
In February 2023, the Company won a £0.7 million Innovate UK grant as part of
the Sunderland Advanced Mobility Shuttle ("SAMS") project with Sunderland City
Council. The Company has won this funding to provide three Self-Driving
zero-emission Auto-Shuttles, which will transport passengers in central
Sunderland. The project will research, build, trial and evaluate the
deployment of a highly automated, remotely supervised, zero-emission passenger
mobility service within the city. Development work has now commenced, with the
aim of demonstrating a sustainable commercial service during 2024.
Summary
The exciting progress seen during 2022 has continued into 2023, with industry
partnerships and grant-funded projects signed in the Autonomous and Aviation
division and good customer traction across Automotive, whilst also maintaining
strong cost controls.
Our investment in sales and marketing, and the growth of our aviation industry
profile, alongside our partnership with Changi Airport Group, is resulting in
encouraging levels of new enquiries and potential customer engagement across
the globe.
Our Company is in a strong position to continue to deliver the planned
projects and opportunities presented at IPO, particularly in the aviation
space. 2023 will be a year of demonstrating and proving our aviation products
on the ground which will translate into long term partnerships and ultimately,
product sales.
David Keene
Chief Executive Officer
17 May 2023
FINANCIAL REVIEW
The year ended 31 December 2022 was transformational for the Company,
successfully achieving our IPO on AIM during the third quarter, in what proved
to be very difficult market conditions. In addition, the establishment of our
Singapore operation co-located alongside CAG, our lead aviation partner and
the recruitment of a dedicated team there has helped to cement that
relationship.
Current year review
The Autonomous and Aviation division continues to develop and showcase its
autonomous technology and product offerings and consult with potential
customers. Revenue in this division has increased by 41.5% following
demonstration deployments of the Auto-Pod and Auto-Shuttle across three sites
in the UK. The related R&D capitalised costs and deferred revenue of these
projects have been charged/released to the statement of comprehensive income
in the year.
The Automotive division was not directly affected by any supply chain issues.
However, difficulties in within the automotive sector resulted in out of the
norm shutdowns by some vehicle OEMs where they were not able to build vehicles
and therefore volumes were down. As we supply mainly premium and special
vehicle segments within the industry, we were partially protected from this,
but Automotive revenues were down by 2.3% compared to 2021. This is expected
to recover through 2023.
Gross profit margin for the year was fairly flat at 34.3% compared to 34.6% in
2021 resulting from increased inflationary pressures and product sales mix.
Overheads have significantly increased through the year, driven by the Company
joining AIM. One-off costs related to this process charged to the statement of
comprehensive income account amounted to £1,010k and the additional costs
related to operating a public company have accrued through the final quarter
of the year. Adjusted EBITDA was a loss of £939K after other operating income
of £278K, of which £107K relates to R&D tax credits. This compares to an
adjusted EBITDA profit of £354k where increased costs due to being a listed
business were not incurred.
We have continued to take advantage of grant funding in order to develop and
demonstrate our autonomous products, with £842k of cash receipts added to
deferred revenue in the year.
Statement of financial position
With the IPO having raised gross proceeds of £8.0 million in total, at 31
December 2022, the Company's cash balance was £5.4m, an increase of 317% at
end 2021. We are now well funded to continue to take advantage of the
opportunities that we are currently seeing.
Post IPO, proceeds have been invested in innovation and R&D and increasing
our headcount - particularly building our engineering and sales and marketing
capabilities and establishing full time operations in both Singapore and
Ottawa. Inventory has also increased through the introduction of new product
lines due to become core automotive sales from 2023 onwards. Development costs
have continued to be capitalised, adding £1m to fixed assets net of
amortisation. CBILS loans continue to be paid in accordance with the
contracted schedule of payments and stand at £85k and are due to be fully
paid in 2025.
Outlook
Increased automotive interest and continued progress with our lead aviation
partner for our autonomous baggage handling vehicles positions Aurrigo well to
build on its current year results.
Ian Grubb
Chief Financial Officer
17 May 2023
FINANCIAL STATEMENTS
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
£'000 £'000
Revenue 5,302 5,268
Cost of sales (3,483) (3,446)
Gross profit 1,819 1,822
Other operating income 278 168
Administrative expenses including non-recurring expenses, share based payment
charges, depreciation and amortisation
(4,569) (1,789)
Operating (loss)/profit (2,472) 201
Costs of admission to AIM (1,010) - 36
Related party loan write back - (143) - (185)
Share based payments (208) (4)
Depreciation (172)
Amortisation
Adjusted EBITDA*
(939) 354
Finance 2 -
income
(26) (23)
Finance
costs
(Loss)/profit before taxation (2,496) 178
Income tax 301 (106)
income/(expense)
(Loss)/profit for the year attributable to equity shareholders of the parent
(2,195) 72
Other comprehensive income:
Items that will not be reclassified to profit or loss
Currency translation differences (2) -
Total items that will not be reclassified to profit or loss (2) -
Total other comprehensive income for the year (2) -
Total comprehensive income for the year (2,197) 72
Profit and total comprehensive income for the year is all attributable to
owners of the parent company. All (loss)/ profit after taxation arise from
continuing operations.
* Adjusted EBITDA refers to earnings before interest, tax, depreciation,
amortisation, impairment, share-based payment charges, and exceptional items.
2022 2021
£ per share £ per share
Earnings per
share
Basic (£ per share) (0.12) 0.06
Diluted (£ per share) (0.12) 0.06
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
2022 2021
£'000 £'000
Non-current assets
Intangible 5,403 4,394
assets
306 237
Property, plant and
equipment - 3
Deferred tax
asset
Total non-current assets 5,709 4,634
Current assets
Inventories 931 778
Trade and other 1,532 1,168
receivables
Current tax 174 324
recoverable
Cash and cash equivalents 5,386 1,290
Total current assets 8,023 3,560
Total assets 13,732 8,194
Current liabilities
Trade and other payables 1,143 1,079
Borrowings 30 30
Lease liabilities 79 155
Deferred grant income 217 -
Total current liabilities 1,469 1,264
Net current assets 6,554 2,296
Total assets less current liabilities 12,263 6,930
Non-current liabilities
Borrowings 55 85
Lease liabilities 132 26
Deferred tax liabilities - 351
Deferred grant income 3,442 2,944
Total non-current liabilities 3,629 3,406
Total liabilities 5,098 4,670
Net assets 8,634 3,524
Equity
Called up share capital 83 -
Share premium account 7,103 -
Share option reserve 143 -
Retained earnings 1,305 3,524
Total equity 8,634 3,524
The financial statements were approved by the board of directors and
authorised for issue on 17 May 2023.
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
Share Share
Share capital premium account option reserve Retained earnings
Total
£'000 £'000 £'000 £'000 £'
00
0
Balance at 1 January 2021 - - - 3,552 3,552
Year ended 31 December 2021:
Profit and total comprehensive income for the year
- - - 72 72
Transactions with owners in their capacity as owners:
Dividends
- - - (100) (100)
Balance at 31 December 2021 - - - 3,524 3,524
Year ended 31 December 2022:
Loss for the year - - - (2,195) (2,195)
Other comprehensive income: Currency translation differences
- - - (2) (2)
Total comprehensive income
for the year - - - (2,197) (2,197)
Transactions with owners in their
capacity as owners:
Issue of share capital 33 8,133 - - 8,166
Costs of issue set against premium - (1,030) - - (1,030)
Share option expense - - 143 - 143
Deferred tax on share based
payment transactions - - - 28 28
Issue of share capital from reserves 50 - - (50) -
Balance at 31 December 2022 83 7,103 143 1,305 8,634
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
£'000 £'000 £'000 £'000
Operating activities
(Loss)/profit for the year (2,195) 72
Adjustments for:
Tax charge (301) 106
Finance 26 23
costs
Investment income (2) -
RDEC grant income (107) -
Loss on disposal of assets - 1
Amortisation and impairment of
intangible 172 4
assets
Depreciation and impairment of
property, plant and 208 184
equipment
Impairment of debts from third parties - (36)
Non cash grant income - (13)
Equity settled share based payment
expense 143 -
(2,056) 341
Movements in working capital:
Increase in inventories (153) (156)
Increase in trade and other
receivables (367) (172)
Increase in trade and other payables 58 273
Cash (absorbed by)/generated from
operations (2,518) 286
Interest paid (2) -
Income taxes refunded 238 42
Net cash (outflow)/inflow from
operating activities (2,282) 328
Investing activities
Capitalised development costs (1,155) (1,174)
Grant income on capitalised
research and development 715 847
Purchase of intangible assets (24) (31)
Purchase of property, plant and
equipment (62) (16)
Repayment of loans issued to
third parties - 36
Interest received 2 -
Net cash used in investing activities (524) (338)
2022 2021
£'000 £'000 £'000 £'000
Financing activities
Interest paid (21) (23)
Proceeds from issue of shares 7,136 -
Repayment of bank loans and
borrowings (30) (17)
Payment of lease liabilities (182) (163)
Dividends paid - (100)
Net cash generated from/(used in)
financing activities 6,903 (303)
Net increase/(decrease) in cash and
cash equivalents 4,097 (313)
Cash and cash equivalents at
beginning of year 1,290 1,603
Effect of foreign exchange rates (1) -
Cash and cash equivalents at
end of year 5,386 1,290
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1. Basis of preparation
While the financial information in these results has been prepared using the
recognition and measurement principles of UK adopted International Accounting
Standards, this announcement does not contain sufficient information to comply
with this. The principal accounting policies used in preparing the results
have been applied in the comparatives for the year-ended 31 December 2021.
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 December 2022 or 2021, but is
derived from those accounts noting that the Group transitioned to UK Adopted
International Accounting Standards as disclosed in the Admission Document upon
the Group's admission to the AIM Market. Statutory accounts for the year
ended 31 December 2021 have been delivered to the Registrar of Companies and
those for the year ended 31 December 2022 will be delivered following the
Company's annual general meeting.
The auditors have reported on those accounts and their reports were qualified
in respect of earlier years' accounts not being subject to audit.
2. Accounting Policies
Company Information
Aurrigo International Plc is a public company limited by shares incorporated
in England and Wales. The registered office is Unit 33 Bilton Industrial
Estate, Humber Avenue, Coventry, CV3 1JL. The company's principal activities
and nature of its operations are disclosed in the directors' report.
The group consists of Aurrigo International Plc and all of its subsidiaries.
Going Concern
The Company has consolidated its trading position in the year, maintaining
sales of £5.3m and gross profit of £1.8m. Net cash stands at £5.4m having
successfully listed on AIM with net proceeds of £7.2m.
Management has prepared detailed financial projections for a period of at
least 12 months from the date of signing the financial statements ("Review
Period"). These projections are based on the Company's detailed annual
business plan. Sensitivity analysis has been performed to model the impact of
more adverse trends compared to those included in the financial projections in
order to estimate the impact of severe but plausible downside risks.
The key sensitivity assumptions applied include:
- Delay in revenues derived from R&D testing of Autonomous
vehicles and related simulation.
- Increased wage rate inflation.
- Increased general inflation on input costs, including goods
sold.
Mitigating actions available to the Company were applied and the Board
challenged the assumptions used. After reviewing the forecasts the Board has
formed the judgement at the time of approving the financial statements that
there is a reasonable expectation that the Company has adequate resources to
continue in operational existence for at least twelve months from the date of
approval of these financial statements.
3. Revenue and Segmental Analysis
IFRS 8 'Operating Segments' requires operating segments to be identified on
the basis of internal reports of the Group that are regularly reviewed by the
Group's chief operating decision maker. The chief operating decision maker of
the Group is considered to be the Board of Directors. The Group has considered
the overriding core principles of IFRS 8 'Operating segments' as well as its
internal reporting framework, management and operating structure. The
conclusion is that the Group has two operating segments as follows:
· Automotive components - the supply of electrical components for
use in the automotive sector and across other industrial applications, as well
as trim and design components.
· Autonomous - the design, development and manufacture of autonomous
vehicles and associated autonomous design and consultancy services.
Where costs cannot be meaningfully allocated to either primary operating
segment, these are allocated as central costs and overheads.
The Group does not track its assets and liabilities by operating segment, and
as such no information is provided to the chief operating decision maker in
this respect. As such, no disclosure is provided of the segmental analysis of
assets and liabilities.
The Group previously named the two sectors "Electrical components" and
"Autonomous vehicles". The change in name is to clarify the wider basis of
operations in each division and does not otherwise represent any
reorganisation of operating segments.
The revenues are allocated to the following operating segments:
2022 2021
£'000 £'000
Revenue analysed by class of business
Automotive components Autonomous 4,803 4,915
499 353
5,302 5,268
All revenue is recognised at a point in time when the single performance
obligation is satisfied and the product is sold to the customer. This is
usually at the point that the customer has signed for the delivery of the
goods and the significant risks and rewards of ownership of the goods has
transferred to the customer. There were no volume discounts in the current or
prior year.
The Group presents the majority of its direct costs split on a reasonable
basis for the operating segments identified, with any non-allocated income and
costs presented within the central segment. The results are allocated to the
following operating segments:
Automotive components
Year ended 31 December 2022: £'000 Autonomous Central Total
£'000 £'000 £'000
Revenue 4,803 499 - 5,302
Cost of sales (3,306) (177) - (3,483)
Gross profit 1,497 322 - 1,819
Other operating income - 278 - 278
Costs of admission to AIM - - (1,010) (1,010)
Expenditure - - (3,178) (3,178)
EBITDA 1,497 600 (4,188) (2,091)
Depreciation and amortisation - (172) (208) (380)
Operating profit/(loss) 1,497 428 (4,396) (2,471)
Interest receivable - - 2 2
Finance costs - - (26) (26)
Profit/(loss) before tax 1,497 428 (4,420) (2,495)
Automotive
components Autonomous Central Total
Year ended 31 December 2021: £'000 £'000 £'000 £'000
Revenue 4,915 353 - 5,268
Cost of sales (3,417) (29) - (3,446)
Gross profit 1,498 324 - 1,822
Other operating income - 148 20 168
Related party loan write off - - 36 36
Expenditure - - (1,637) (1,637)
EBITDA 1,498 472 (1,581) 389
Depreciation and amortisation - - (189) (189)
Operating profit/(loss) 1,498 472 (1,770) 200
Interest receivable - - - -
Finance costs - - (23) (23)
Profit/(loss) before tax 1,498 472 (1,793) 177
Revenue from customers who individually accounted for more than 10% of total
Group revenue amounted to £4,051,430 (2021 - £3,418,073) from two customers,
as follows:
2022 2021
£'000 £'000
Customer 1 1,454 1,432
Customer 2 2,597 1,986
4,051 3,418
Revenue from each of the above customers is recognised in the supply of
automotive components segment.
2022 2021
£'000 £'000
Revenue analysed by geographical market
United Kingdom Europe 5,081 4,943
Rest of the World 162 122
59 203
5,302 5,268
Assets and liabilities related to contracts with customers:
The Group had no contract assets or contract liabilities at the year-end (2021
- £nil).
4. Other Operating Income
2022 2021
£'000 £'000
Government grants 171 23
Research and development expenditure credit 107 145
278 168
Government grants comprise the following:
· Covid-19 job retention scheme grant totaling £nil (2021 - £6,756)
which is credited to the income statement in the period in which the
expenditure for which it is intended to contribute towards has been incurred;
· other Coronavirus support of £nil (2021 - £13,362); and
· other grant income of £171,173 (2021 - £3,262) in relation to
Innovate UK, Australian and Canadian equivalents, and UK local government
bodies.
The Group has recognised the following liabilities in relation to other grant
income:
2022 2021
£'000 £'000
At 1 January 2,944 2,097
Value of grant income to which entitlement was established in the year Amounts 886 850
recognised in other operating income during the year
(171) (3)
At 31 December 3,659 2,944
Included in the above is deferred grant income due within one year of
£217,248 (2021 - £nil).
The release of deferred grant income is dependent on when amortisation of
development costs begins but there are no other external contingencies in
relation to recognising the grant income, except for the requirement to match
the associated amortisation expense.
5. Dividends
Amounts recognised as distributions:
2022 2021 2022 2021
per share per share Total Total
£'000 £'000 £'000 £'000
Final dividend paid - 0.08 - 100
The directors do not propose payment of a final dividend for the current year.
6. Earnings Per Share
2022 2021
Number Number
Number of shares
Weighted average number of ordinary shares for basic earnings per share Effect 18,721,737 1,208,215
of dilutive potential ordinary shares:
- Weighted average number outstanding share options
- -
Weighted average number of ordinary shares for diluted earnings per share 18,721,737 1,208,215
2022 2021
£'000 £'000
Earnings
Continuing operations
Loss/profit for the period from continued operations (2,195) 72
2022 2021
£ per share £ per share
Earnings per share for continuing operations
Basic earnings per share (0.12) 0.06
Diluted earnings per share (0.12) 0.06
In the current year the Group incurred losses and as such has not presented
any dilutive shares in accordance with IAS 33 'Earnings per share'. The
diluted earnings per share is therefore the same as the basic earnings per
share.
The Group does have a number of share options, which have been issued during
the current year, that would dilute the earnings per share should the Group
become profitable.
There were no share options outstanding at the end of the prior year.
Adjusted earnings per share
The Directors use adjusted earnings before exceptional costs share based
payment expenses, depreciation and amortisation. This creates an alternative
performance measure which the Directors believe reflects a fair estimate of
ongoing profitability and performance. The calculated Adjusted Earnings for
the current period of accounts is as follows:
2022 2021
Number Number
Number of shares
Weighted average number of ordinary shares for basic earnings per share 18,721,737 1,208,215
Effect of dilutive potential ordinary shares:
· Weighted average number outstanding share options - -
· Convertible debt - -
Weighted average number of ordinary shares for diluted earnings per share 18,721,737 1,208,215
2022 2021
£'000 £'000
Adjusted earnings
Loss/profit for the period from continued operations (2,195) 72
Adjusted for:
Non-recurring costs 1,010 (36)
Share based payment expense 143 -
Depreciation 208 185
Amortisation 172 4
Net finance costs 24 23
Taxation (301) 106
Adjusted earnings for basic and diluted earnings per share (939) 354
2022 2021
£ per share £ per share
Earnings per share for continuing operations
Basic earnings per share (0.05) 0.29
Diluted earnings per share (0.05) 0.29
As the adjusted earnings per share still shows the Group incurring losses
during the current year, the dilutive shares have not been presented for the
adjusted earnings per share calculation also. The diluted earnings per share
is therefore the same as the basic earnings per share.
2022 2021 2022 2021
Ordinary share capital Number Number £'000 £'000
Authorised, issued and fully paid
Ordinary shares of £0.002 each (2021 - £0.00001 each) 41,666,667 1,208,215 83 -
7. Share Capital
Various reorganisation steps were taken on 27 July 2022 in relation to the IPO
as follows:
· Issue of one Ordinary share with nominal value of £0.00001 per
share at the market value of £19.45 per share.
· Issue of 11,784 Ordinary shares from reserves to existing
shareholders at a ratio of 1,743 new Ordinary shares for every 151,027
existing Ordinary shares held. The bonus shares issued are of the same class
and same nominal value as the existing holdings.
· Consolidation its Ordinary shares at a ratio of 1 new Ordinary
share for every 200 existing Ordinary shares held.
· Issue of 24,993,900 Ordinary shares from reserves to existing
Ordinary shareholders at a ratio of 249,939 new Ordinary shares for every 61
existing Ordinary shares held. The bonus shares issued are of the same class
and same nominal value as the existing holdings.
On 15 September 2022 the Company announced the admission to trading on the AIM
market of the London Stock Exchange. The Company raised £8,166,667 (before
expenses) by way of placing 16,666,667 Ordinary shares of £0.002 each.
Reconciliation of movements during the year: Number
At 1 January 2022 1,208,215
Issue of fully paid shares 1
Issue from reserves 11,784
Consolidation of existing shares (1,213,900)
Issue from reserves 24,993,900
Allotment of shares 16,666,667
At 31 December 2022 41,666,667
Reserves of the Company represent the following:
Share capital - Shares in the Company held by Shareholders.
Share premium account - premium on the company's ordinary share capital
Retained earnings - Retained earnings represent cumulative net gains and
losses recognised in the Statement of Comprehensive Income.
Share option reserve - the cumulative charge for share based payments, less
amounts subsequently exercised or cancelled.
8. Annual Report and Notice of Annual General Meeting
The annual report and accounts for the year ended 31 December 2022 will be
available on the Company's website and posted to shareholders in due course,
together with the notice of the Annual General Meeting, which will be held on
14th June 2023 at the offices of Aurrigo International plc.
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