REG - CAP-XX Limited - Interim Results <Origin Href="QuoteRef">CAPX.L</Origin>

CAP XXAnnouncement

05/03/2015 07:11

RNS Number : 5879G
CAP-XX Limited
05 March 2015
5th March 2015
CAP-XX Limited
Interim Results for the half-year ended 31 December 2014
CAP-XX Limited, a world leader in the design and manufacture of revolutionary thin-form supercapacitors, which considerably extend the performance of batteries, announces its interim results for the half-year ended 31 December 2014.
Financial Highlights
Product Sales Revenue of A$ 2.2m up 2% on corresponding half year. The increase represented a volume increase of 5%, average selling prices down by 6% and the strengthening USD contributed 3%. Range of sales opportunities continues to grow in new and emerging markets for supercapacitor applications.
Net Loss reduced to $0.9m (H12013: A$1.2m) The year on year improvement is result of the improvement in gross margin due to the realisation of operational cost savings, lower administration expenditure and the associated translation benefits from a stronger USD. 
Cash reserves of A$0.5m at the period end (H12013: A$2.7m) which includes the receipt of a tax rebate from the Australian Taxation Office of A$1.2m (2013 A$1.0m).
Operational Highlights
Engagement with companies in the automotive industry and supply chain is now moving to evaluation phase with and license opportunities currently under negotiation.
 Identified operational cost savings have been delivered and investigations have commenced on Phase II.
 MOU signed with Global Tier-1 Automotive components company for truckStart application.
For further information contact:
CAP-XX Limited

Anthony Kongats (Chief Executive Officer)
+61 (0) 2 9428 0139


Cenkos Securities (Nominated Adviser and Joint Broker)

Stephen Keys/Mark Connelly
+44 (0) 20 7397 1949


Allenby Capital Limited (Joint Broker)

David Hart/Alex Brearley
+44 (0) 20 3328 5656


Kreab (Financial PR)

Robert Speed
+44 (0) 20 7074 1800
More information is available at www.cap-xx.com


Notes to Editors:
CAP-XX (LSE:CPX) is a world leader in the design and manufacture of thin flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a apace-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com
Chairman's Statement
Product sales revenue of A$2.3m is up 2% over that in the previous year with volumes increasing by 5%, and average selling prices down by 6%. The operating loss after tax has reduced to $0.9m (H12013: A$1.2m). The year on year improvement is a result of the improvement in gross margin due to the realisation of operational cost savings, lower administration expenditure and associated translation benefits from a stronger US dollar.
As at 31 December 2014, the Company had cash and cash equivalents of A$0.5m (H12013 :A$2.7m) which includes the receipt of a tax rebate from the Australian Taxation office of A$1.2m (2013:A$1.0m). 
As highlighted in the trading update statement on 3 February 2015, the Company has announced:
 the signing of a mutually exclusive memorandum of understanding (MoU) with a North American Global Tier-1 automotive components company, initially for the development of products for the North American truck market; 
 that in terms of trading generally, supercapacitor revenues and volume had improved, with demand driven primarily by the wider adoption of CAP-XX's supercapacitor technology in medical and consumer wearables, RFID/logistics support and automated meter reading; and 
 highlighted its continued focus on manufacturing cost reduction, which had already resulted in annualised cost savings of approximately US$1 million, with additional savings expected in the subsequent financial year.
The MoU is for the development of CAP-XX's large automotive supercapacitors for a standalone system which can serve both original equipment and aftermarket applications, via potentially replacing one in three or one in four truck batteries with a supercapacitor unit. CAP-XX has produced prototypes of this product under the name 'truckStart'.
The Board believes that CAP-XX's market share within existing electronics markets has been fairly steady, with growth in these markets being modest to date. However, the Board also believes that demand for thin, small devices, such as wearable electronics and growth in energy-harvesting as a power source, will drive rapid growth in these markets. As a consequence, CAP-XX has been seeking to increase the end use of its supercapacitors in multiple high growth markets, including:
 sports gear and small personal medical devices within the wearable electronics field; 
 building and industrial control systems and RFID tags within the energy harvesting systems; and
 a variety of metering and telemetry applications. 
Large cell markets, such as automotive, have also been growing strongly and CAP-XX now has the prototype large capacity devices required to enter these markets. To date, CAP-XX has engaged with over 20 companies in the automotive industry and supply chain. This activity is now moving towards evaluations and licence opportunities. 
Since mid-2014, CAP-XX has achieved significant reductions in production costs and improvements in gross margins. In June 2014, the Board's target was to reduce total production cost by approximately 30 per cent. As at the end of November 2014, savings of 27 per cent. had been achieved. The Board now expects a total production cost reduction of 36 per cent between June 2014 and June 2015 and believes that further savings can be achieved beyond June 2015, including additional raw material cost reductions, which are currently being investigated. The manufacturing cost reduction programme has resulted in material and process improvements, which have already delivered improved product performance. The Board believes that the ongoing programme should deliver numerous further benefits, including: 
 allowing CAP-XX to be cost-competitive on higher volume business, whilst increasing the margin contribution; and
 a more focussed product range, which will drive further reductions in production costs and working capital requirements over time.
The Board continues to remain confident that trading for the 2014/15 financial year will continue to better the previous period. 
Patrick Elliott
Chairman
4th March 2015
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2014


Consolidated


Half-year 2014
Half-year 2013




Currency: Australian Dollars

$
$




Revenue from sale of goods and services

2,265,654
2,222,376
Cost of sale of goods and services

(1,608,662)
(1,654,152)
Gross margin (loss) on sale of goods and services

656,992
568,224




Other revenue

6,769
29,899
Other income

573,996
543,525
General and administrative expenses

(953,764)
(1,138,007)
Process and engineering expenses

(299,873)
(221,569)
Selling and marketing expenses

(254,982)
(238,784)
Research and development expenses

(568,495)
(738,304)
Other expenses

(33,747)
(27,114)
(Loss) before income tax 

(873,104)
(1,222,130) 




Income tax benefit/(expense)

-
-
Net (loss) for the half year

(873,104)
(1,222,130)




(Loss) attributable to members of CAP-XX Limited

(873,104)
(1,222,130) 




Earnings (loss) per share attributable to the ordinary equity holders of the company

Cents
Cents
Basic earnings per share

(0.76)
(1.07)
Diluted earnings per share

(0.76)
(1.07)
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2014


Consolidated


31 December 2014
30 June 2014
31 December 2013





Currency: Australian Dollars

$
$
$





ASSETS




Current assets




Cash and cash equivalents

546,466
900,397
2,729,595
Receivables

594,730
558,805
567,514
Inventories

934,914
770,626
678,940
Other

531,821
1,244,045
586,096
Total current assets

2,607,931
3,473,873
4,562,145





Non-current assets 




Property, plant and equipment

375,147
377,163
394,116
Other 

236,507
236,507
236,507
Total non-current assets 

611,654
613,670
630,623





Total assets

3,219,585
4,087,543
5,192,768





LIABILITIES




Current liabilities




Payables

785,684
829,188
749,542
Provisions

923,679
963,246
866,369
Progress payments - Sale of Plant

-
-
-
Total current liabilities

1,709,363
1,792,434
1,615,911





Non-current liabilities 




Provisions

36,838
39,847
127,106
Total non-currentliabilities

36,838
39,847
127,106





Total liabilities

1,746,201
1,832,281
1,743,017





Net assets 

1,473,384
2,255,262
3,449,751










EQUITY




Contributed equity

90,405,581
90,293,839
90,293,840
Reserves

3,656,263
3,676,779
3,550,337
Accumulated losses

(92,588,460)
(91,715,356)
(90,394,426)
TOTAL EQUITY

1,473,384
2,255,262
3,449,751
CAP-XX Limited
Statements of changes in equity
For the half-year ended 31 December 2014

Consolidated




Contributed
Equity
$
Reserve
$
Accumulated losses
$
Total
$





Balance at 1 July 2013

87,932,560
3,461,424
(89,044,081)
2,349,903
Adjustment for correction of error (Note 1 c)

(128,215)
(128,215)5
Profit for the period as reported in the 2014 financial statements

-

(2,543,060)
(2,543,060)
Other comprehensive income 

-
9,271 
-
9,271
Transactions with owners in their capacity as owners:





Contributions of equity, net of transaction costs and tax

2,361,279


2,361,279
Employeeshareoptions  value of employee services
-
206,084 
-
206,084


2,361,279
206,084 
-
2,567,363 






Balance at 30 June 2014

90,293,839
3,676,779
(91,715,356)
2,255,262
Profit for the period as reported in the 2015 interim financial statements

-
- 
(873,104)
(873,104)
Other comprehensive income 

-
(85,432) 
-
(85,432)
Transactions with owners in their capacity as owners:





Contributions of equity, net of transaction costs and tax

111,742 
- 
- 
111,742
Employeeshareoptions  value of employee services

-
64,916
-
64,916


111,742
64,916
-
176,658






Balance at 31 December 2014

90,405,581
3,656,263
(92,588,460)
1,473,384
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2014


Consolidated


Half-year 2014
Half-year 2013




Currency: Australian Dollars

$
$




Cash flows from operating activities



Receipts from customers (inclusive of goods and services tax)

2,492,221
2,087,948
Payments to suppliers and employees (inclusive of goods and services tax)

(3,963,024)
(3,804,513)


(1,470,803)
(1,716,565)
Tax credit received

1,172,447
1,003,493
Interest received

6,769
29,899
Net cash (outflow) inflow from operating activities

(291,587)
(683,173)




Cash flows from investing activities



Payments for property, plant and equipment

(88,654)
(28,504)
Net cash (outflow) inflow from investing activities

(88,654)
(28,504)




Cash flows from financing activities



Proceeds from issue of shares 

111,742
2,361,280
Net cash inflow from financing activities

111,742
2,361,280




Net increase (decrease) in cash and cash equivalents

(268,499)
1,649,603
Cash and cash equivalents at the beginning of the half-year year

900,397
1,105,523
Effects of exchange rate changes on cash and cash equivalents

(85,432)
(25,531)
Cash and cash equivalents at the end of the half-year year
546,466
2,729,595




This general purpose interim financial report, for the half-year reporting period ended 31 December 2014, has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This general purpose interim financial report, for the half-year reporting period ended 31 December 2014, is (with the exception of the figures for 30 June 2014 in the Balance Sheet) unaudited.

This information is provided by RNS
The company news service from the London Stock Exchange
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