REG - Clean Power Hydrogen - Interim results
23/09/2022 07:00
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RNS Number : 3810A Clean Power Hydrogen 23 September 2022
23 September 2022
Clean Power Hydrogen Plc
("CPH2", the "Company" or the "Group")
Interim results for the six months ending 30 June 2022
CPH2 (AIM: CPH2), the UK-based green hydrogen technology and manufacturing
company that has developed the IP-protected Membrane-Free Electrolyser ™
("MFE"), is pleased to announce its unaudited results and report for the six
months ending 30 June 2022 ("H1 2022").
Highlights
· Successful admission to AIM, a market operated by the London
Stock Exchange, in February 2022, raising gross proceeds of £30.5m
o Awarded the London Stock Exchange Green Economy Mark at admission
· Order book momentum:
o Entered into a purchase order with AFCyro, for the sale of a 1MW MFE220
unit, the second unit purchased by the company
o Order placed by ATOME Energy, for one 1MW MFE220 unit
· License agreement momentum:
o Signed a 2 gigawatts ("GW") license to GHFG Ltd, a subsidiary of Alternus
Energy Group Plc, over a period of up to 20 years, with production expected in
2023.
o Technical Cooperation Agreement with Bentec GmbH, an operating company
entity of Kenera Energy Solutions ("Kenera") providing for the manufacture of
up to 30 MFE220 units for CPH2 at its manufacturing facility in Germany.
Kenera is a business unit of our strategic shareholder, the KCA Deutag Group.
o Kenera has been awarded a non-exclusive license to sell and manufacture
CPH2 products in Germany, Scotland, Azerbaijan, Denmark and Norway up to a
maximum of 150 MFE units per annum.
o CPH2 has also granted Kenera an exclusive license to sell and manufacture
CPH2 products across the Middle East up to a maximum level of 2GW (including
Oman, Saudi Arabia, United Arab Emirates, Qatar, Kuwait and Iraq).
· The appointment of James Hobson as Chief Financial Officer
("CFO") and executive director joining later in the year
· Significantly invested in its workforce, increasing the head
count from under 30 at IPO to over 50 as at 23 September 2022. This includes
the appointment of Arash Selahi as the new Head of Production
· Period end net asset position of £27.4 million, of which £23.2
million was in cash or current assets investments (bank deposits).
Jon Duffy, CPH2 CEO commented:
"The first half of 2022 was a notable period for the Company as it listed on
AIM and funded itself for a rapid ramp up and expansion. We have also seen
both purchase order and license agreement momentum in the period, as customers
from around the world have seen the value of the low cost, highly robust
membrane free electrolyser technology owned, manufactured and licensed by
CPH2. We are working successfully to overcome the engineering challenges and
look to the future with confidence."
For more information, please contact:
Clean Power Hydrogen Plc via Camarco
Jon Duffy, Chief Executive Officer
Cenkos Securities plc - NOMAD & Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
Camarco PR + 44(0) 20 3 757 4980
Billy Clegg
Owen Roberts
Fergus Young
To find out more, please visit: https://www.cph2.com (https://www.cph2.com)
Overview of CPH2
CPH2 is the holding company of Clean Power Hydrogen Group Limited ("Clean
Power") which has almost a decade of dedicated research and product
development experience. This experience has resulted in the creation of
simple, safe and sustainable technology which is designed to deliver a modular
solution to the hydrogen production market in a cost-effective, scalable,
reliable and long-lasting manner. The Group's strategic objective is to
deliver the lowest LCOH in the market in relation to the production of green
hydrogen. The Group's MFE technology is already commercially available and
demonstrating cost efficiencies and technological advantages. CPH2 is listed
on the AIM market and trades under the ticker LON:CPH2.
CEO statement
Introduction and IPO
H1 2022 is the first reporting period for CPH2 as a plc and it has been a
period of significant progress as we gear up to production of the MFE units.
The Company admitted to trading on AIM on 16 February, successfully raising
£30.5 million (before expenses) in an over-subscribed Placing at 45p per
share. These funds enable the Company to build out its Doncaster
manufacturing facility and fund the Company's growth. At the same time, we
were awarded the London Stock Exchange's Green Economy Mark, which recognises
companies that derive 50% or more of their total annual revenues from products
and services that contribute to the global green economy.
Order book momentum
Shortly after IPO, the Company announced that ATOME Energy purchased a 1MW
MFE220 electrolyser unit to be deployed in ATOME's Paraguay mobility project.
At the same time, CPH2 and ATOME entered into non-binding letters of intent
confirming the parties' mutual intentions to collaborate in respect of
potential future orders of electrolyser units for ATOME's international
hydrogen and ammonia projects and to investigate and discuss a potential joint
venture for the future production of electrolysers in country to serve the
Latin American market using CPH2's technology and know-how. ATOME has
confirmed that it expects that further orders will follow in due course.
This first unit for ATOME's Mobility Division will be based within the region
of Asuncion, the capital of Paraguay, with commencement of production planned
during 2023, which is anticipated to be the first commercial production of
hydrogen for transport in Paraguay.
We were also pleased to announce a purchase order with AFCryo, a New Zealand
based manufacturer of composite cryostats and cryogenic cooling systems, for
the sale of a 1MW MFE220 electrolyser unit to be delivered in 2023. This is
the second 1MW electrolyser unit that AFCryo has purchased within 18 months.
CPH2 has an established working relationship with AFCryo and utilises the
AFCryo cryogenic cooling system in its MFEs. CPH2's MFE220 runs with 1MW of
input power with eight stacks and is capable of producing 450kg/day of high
purity hydrogen output.
In May 2021 AFCryo placed an order for its first 1MW MFE220 electrolyser, with
delivery anticipated in 2023. Additionally, in 2021, AFCryo was appointed as a
non-exclusive agent for the marketing and sale of the CPH2 electrolyser system
in Australia, New Zealand and the Pacific Islands.
Both of these electrolysers will be used as part of the decarbonisation of New
Zealand's heavy transport fleet.
Future order momentum through license agreements
Since IPO, as well as unit sales, we have also announced two significant
license agreements, which will play an important role in providing order
momentum into the future as we scale up the business and expand overseas.
The first one is with GHFG for the construction of 2GW of MFE electrolysers
over a period of up to 20 years. GHFG is a subsidiary of Alternus. Under the
licence agreement, GHFG will produce the CPH2 MFE electrolysers at a new
facility in Ireland and plans to start production during 2023. Each
electrolyser produced by GHFG under this agreement will be installed alongside
and powered from solar energy projects owned and operated by Alternus. Under
the agreement, CPH2 will receive an upfront licence fee, and thereafter, a
technology fee per unit, followed by service and maintenance licences during
the unit's life, supplying key components with a margin to CPH2. The upfront
licence fee is expected to be received in Q4 2022 and Q1 2023 and is to be
recognised as revenue over the life of the contract.
In September 2022, we also signed a Technology Cooperation Agreement with
Bentec GmbH, an operating company entity of Kenera Energy Solutions, a newly
formed business unit within leading drilling, engineering and technology
company KCA Deutag Group. Kenera has been formed as the platform from which
the KCA Deutag Group plans to grow its offering within hydrocarbon and energy
transition markets and is a significant investor in CPH2. Under the Agreement,
Kenera will manufacture up to 30 MFE220 units for CPH2 at its manufacturing
facility in Germany with the first units expected to be produced in late 2023.
We have also granted Kenera a non-exclusive license to sell and manufacture
CPH2 products in Germany, Scotland, Azerbaijan, Denmark and Norway up to a
maximum of 150 MFE units per annum and we have granted Kenera an exclusive
license to sell and manufacture CPH2 products across the Middle East up to a
maximum level of 2GW over the length of the license (including Oman, Saudi
Arabia, United Arab Emirates, Qatar, Kuwait and Iraq).
Addressing engineering issues
As we previously announced, our early-stage commissioning of our initial units
highlighted certain engineering and scale up issues. A number of design
changes have been made but this has resulted in delays. At the same time, we
have experienced delays in the supply chain as the global situation impacted.
We are working hard to overcome all these issues. However, as previously
reported, these delays will have an impact on the income for the Company
during 2022. We are not expecting any income from sales in this financial year
as the invoice point for MFE220's shipped in 2022 will get rolled into 2023.
We are expecting the first two MFE220's to leave our premises in October 2022,
there will then follow a period of commissioning and testing on site. There
will be an option to exchange these units for upgraded units in 2023 as design
changes are implemented. These would then be upgraded to the new
specifications and will be available for sale.
We recognise the importance of getting our first MFE220's working 'in the
field' and are deploying all necessary resources to make this happen.
Financial Review
These sixth month interim accounts are the first to be published by the
Company since its IPO in February, and this dominated the results for this six
month period. The £30.5m gross fundraise transforms the Balance Sheet from a
net liability position at 31st December 2021 of £0.4 million into a net asset
position of £27.4 million at 30 June 2022. Of this £23.2 million was held in
cash or current asset investments (cash deposits).
The Statement of Comprehensive Income for the six months set out below shows
trading losses continue as the business continues to build work-in-progress on
its confirmed orders, ahead of the delivery of those orders to the customer,
at which time a sale is taken to Income. Losses continue as expected with
administration expenses increasing, as we invest some of the IPO proceeds in
building our human and technical resource capability.
Board and team
During the first half we have invested significantly in the team which has
increased from 30 people to over 50 people currently, including the
appointment of Arash Selahi as the new Head of Production.
Post period end we were pleased to announce the appointment of James Hobson as
Chief Financial Officer and Executive Director. It is expected that James'
employment will commence in Q4 2022, at which point Clive Brook will retire as
an executive director and CFO of the Company. James will join CPH2 from AMTE
Power plc, where he has been CFO since October 2021. James has a wealth of
experience across the energy sector, having worked as a senior finance
executive in the sector for ten years. I would like to take this opportunity
of thanking Clive for all his support over the years and speak on behalf of
the entire CPH2 team in wishing him all the best in his retirement.
I would like to take this opportunity to thank all my colleagues at CPH2 for
their hard work and dedication during the first half of the year and since.
Outlook
The continued drive to net zero combined with the current geo-political
situation in Ukraine, has, in the view of the directors, increased the
potential market for green hydrogen and the pace at which the technology will
be deployed. The Company remains confident that its significant pipeline will
start to transition to sales and we expect very positive cash inflows on
future orders as they are taken. Production of these orders will be in
Doncaster and Germany. Whilst the Company is still planning to launch a 2MW
MFE440, final design work on this has been suspended until we have working
MFE220's in the field. The Company is progressing the potential opening of a
CPH2 run assembly plant in Northern Ireland. Whilst engineering and scale up
issues have delayed our initial MFE220 sales, our success in securing license
partners of the quality of Kenera and GHFG ensures that we will be able to
ramp up production quickly to meet demand.
The Company remains committed to its strategic target of 4GW MFE annual
production by 2030; of this 1GW will be in-house manufacturing and assembly
and 3GW will be via license agreements.
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
Note Unaudited Unaudited
Six months ended 30 June Six months ended 30 June
2022 2021
£'000 £'000
Revenue - -
Cost of sales - -
Gross profit - -
Other operating income 2 36
Administrative expenses excluding exceptional credits and costs
(2,158) (872)
Exceptional net credit/(costs) 4 987 (1,256)
Total administrative expenses (1,171) (2,128)
Operating loss (1,169) (2,092)
Finance income 91 6
Finance expense (28) (3)
Loss before taxation (1,106) (2,089)
Taxation - 5
Loss for the period (1,106) (2,084)
Other comprehensive (expense)/income
Foreign currency translation differences (9) 19
Loss and total comprehensive expense for the period
(1,115) (2,065)
Loss per share (pence)
Basic and diluted 5 (0.45) (1.14)
Consolidated Statement of Financial Position
As at 30 June 2022
Notes Unaudited 30 June 2022 Audited
31 December 2021
£'000 £'000
ASSETS
Non-current assets
Intangible assets 6 1,527 1,176
Property, plant and equipment 1,347 1,327
Trade and other receivables 8 120 120
2,994 2,623
Current assets
Inventories 7 3,889 2,082
Trade and other receivables 8 2,085 704
Tax recoverable - 143
Current asset investments 9 21,000 -
Cash and cash equivalents 2,175 480
29,149 3,409
Total assets 32,143 6,032
LIABILITIES
Current liabilities
Trade and other payables 10 (3,530) (2,772)
Loan from a related party - (382)
Lease liabilities (117) (131)
(3,647) (3,285)
Non-current liabilities
Accruals and deferred income 10 (278) (2,243)
Lease liabilities (797) (856)
(1,075) (3,099)
Total liabilities (4,722) (6,384)
Net assets/(liabilities) 27,421 (352)
EQUITY
Share capital 11 2,654 1,852
Share premium account 11 27,638 -
Merger reserve 11 3,702 3,702
Currency differences reserve (5) 4
Accumulated loss (6,568) (5,910)
Total equity 27,421 (352)
Consolidated Statement of Changes in Equity
As at 30 June 2022
Share Share premium Merger reserve Foreign currency reserve Accumulated loss Total equity
capital
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2021 1,815 - 3,189 (16) (2,793) 2,195
Loss for the period - - - - (2,084) (2,084)
Other comprehensive income:
Foreign currency differences - - - 19 - 19
Total comprehensive expense for the period - - - 19 (2,084) (2,065)
Share based payment - - - - 91 91
Issue of share capital 37 - 513 - - 550
Total contributions by owners 37 513 - 91 641
At 30 June 2021 1,852 - 3,702 3 (4,786) 771
Loss for the period - - - - (1,233) (1,233)
Other comprehensive income:
Foreign currency differences - - - 1 - 1
Total comprehensive expense for the period - - - 1 (1,233) (1,232)
Share based payment - - - - 109 109
Total contributions by owners - - - - 109 109
At 31 December 2021 1,852 3,702 4 (5,910) (352)
Loss for the period - - - - (1,106) (1,106)
Other comprehensive expense:
Foreign currency differences - - - (9) - (9)
Total comprehensive expense for the period - - - (9) (1,106) (1,115)
Share based payment - - - - 448 448
Issue of share capital 802 27,638 - - - 28,440
Total contributions by owners 802 27,638 - - 448 28,888
At 30 June 2022 2,654 27,638 3,702 (5) (6,568) 27,421
Consolidated Statement of Cash Flows
For the six months ended 30 June 2022
Unaudited Unaudited
Six months ended 30 June 2022 Six months ended 30 June 2021
£'000 £'000
Cash flow from operating activities
Loss for the financial period (1,106) (2,084)
Adjustment for:
Depreciation of property, plant and equipment 109 39
Impairment of right-of-use assets - 25
Amortisation of intangible assets 10 4
Share based payments including LTIP credit (1,517) 91
Net finance costs (63) (3)
Taxation credit - (5)
Changes in working capital:
Increase in inventories (1,807) (972)
Increase in trade and other receivables (1,381) (204)
Increase in trade and other payables 742 2,896
Cash used in operations (5,013) (213)
Income tax received 143 5
Net cash used in operating activities (4,870) (208)
Cash flow from investing activities
Current asset investments made (in bank term (21,000) -
deposits)
Purchase of property, plant and equipment (129) (59)
Capital grants received - 117
Purchase of intangible assets (354) (315)
Net cash used in investing activities (21,483) (257)
Cash flow from financing activities
Issue of share capital net of issue costs (note 11) 28,440 -
Cash proceeds from financial asset held - 400
Related party loan repaid (note 12) (382) -
Interest received 91 6
Interest paid (28) (3)
Payment of lease liabilities (73) (59)
Net cash generated from financing activities 28,048 344
Increase/(decrease) in cash and cash equivalents 1,695 (121)
Net cash and cash equivalents at beginning of the period 480 2,937
Net cash and cash equivalents at end of the period (all cash balances)
2,175 2,816
Notes to the condensed interim financial statements for the six months ended
30 June 2022
1. Corporate information
Clean Power Hydrogen plc is a public company incorporated in the United
Kingdom and listed on the Alternative Investment Market. The registered
address is Unit D Parkside Business Park, Spinners Road, Doncaster, England,
DN2 4BL. The principal activity of the company and its subsidiaries (the
'Group') is the development of a patented method of hydrogen and oxygen
production together with the development of a gas separation technique which
enables hydrogen to be produced as 'Green Hydrogen' and oxygen to medical
grade purity.
2. Basis of preparation
This unaudited condensed consolidated interim financial information for the
six months ended 30 June 2022 and 30 June 2021 has been prepared in accordance
with IFRS as adopted by the United Kingdom including IAS 34 'Interim Financial
Reporting'.
The accounting policies applied by the Group include those as set out in the
financial statements for the subsidiary company, Clean Power Hydrogen Group
Limited ('CPHGL'), for the year ended 31 December 2021 and are consistent with
those to be used by the Group in its next financial statements for the year
ending 31 December 2022. In addition to the policies presented in the 2021
financial statements, the Group will apply the policies below applicable to
consolidated financial statements and the Company becoming the parent company
for Clean Power Hydrogen Group Limited and to the accounting for term deposits
of cash. There are no new standards, interpretations and amendments which are
not yet effective in these financial statements, expected to have a material
effect on the Group's future financial statements.
The financial information does not contain all of the information that is
required to be disclosed in a full set of IFRS financial statements. The
financial information for the six months ended 30 June 2022 and 30 June 2021
is unreviewed and unaudited and does not constitute the Group or Company's
statutory financial statements for those periods.
The comparative financial information for the full year ended 31 December 2021
has, however, been derived from the audited statutory financial statements for
Clean Power Hydrogen Group Limited for that period. A copy of those statutory
financial statements has been delivered to the Registrar of Companies. The
auditor's report on those accounts was unqualified and did not contain a
statement under section 498(2)-(3) of the Companies Act 2006.
These policies have been applied consistently to all periods presented, unless
otherwise stated.
The interim financial information has been prepared under the historical cost
convention with the exception of the fair values applied in accounting for
share based payments. The financial information and the notes to the
historical financial information are presented in thousands of pounds sterling
('£'000'), the functional and presentation currency of the Group, except
where otherwise indicated.
Merger accounting and consolidated financial statements
The Company was incorporated on 19 August 2021 with one £0.01 ordinary share
and on 1 February 2022, became the Group parent company when it issued
185,267,700 £0.01 ordinary shares in exchange for all the ordinary shares in
CPHGL. In addition, warrants and options over ordinary shares in CPHGL were
converted, on equivalent terms, to warrants and options over 26,911,940 shares
in the Company. This is considered not to be a business combination within the
scope of IFRS3. This is a key judgement, and as a transaction where there was
no change in the shareholders or holdings, is accordingly accounted for using
merger accounting with no change in the book values of assets and liabilities
and no fair value accounting applied.
The consolidated financial statements present the results of the Company and
its subsidiaries ("the Group") as if they have always formed a single group.
Intercompany transactions and balances between Group companies are therefore
eliminated in full. The share capital presented is that of Clean Power
Hydrogen plc with the difference on elimination of CPHGL's capital being shown
as a merger reserve.
A subsidiary is an entity over which the Group has control. The Group controls
an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity.
Current asset investments
Cash and cash equivalents comprise cash on hand and demand deposits, together
with other short term, highly liquid investments that are readily convertible
into known amounts of cash and are subject to an insignificant risk of changes
in value. Deposits of cash with banks that are subject to maturity terms of
more than 90 days are presented as current asset investments.
Going concern
The directors have considered the principal risks and uncertainties facing the
business, along with the Group's objectives, policies and processes for
managing its exposure to financial risk. In making this assessment the
directors have prepared cash flows for the foreseeable future, being a period
of at least 12 months from the expected date of approval of this financial
information.
The Company has successfully raised net proceeds of £27.6m from new equity in
order to fund investment in the manufacturing operations, working capital and
continuing development work. The Group's forecasts and projections to 31
December 2023 based on the current trends in trading and after taking account
of the funds currently held, show that the company and the Group will be able
to operate within the level of cash reserves.
The directors therefore have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future and consider the going concern basis to be appropriate.
3. Segmental reporting
IFRS 8, Operating Segments, requires operating segments to be identified on
the basis of internal reports that are regularly reviewed by the company's
chief operating decision maker. The chief operating decision maker is
considered to be the executive Directors.
The Group at this stage comprises only one operating segment for the
development and sale of equipment for the electrolytic production of clean
hydrogen and oxygen. The operating segments are monitored by the chief
operating decision maker and strategic decisions are made on the basis of
adjusted segment operating results.
All material assets, liabilities, revenues and expenses are located in, or
derived in, the United Kingdom with the exception of capitalised patent costs
and the related party loan liability in the Irish subsidiary of CPHGL which
are denominated in Euros.
4. Exceptional costs and credits
Six months ended 30 June 2022 Six months ended 30 June 2021
£'000 £'000
Cash settled LTIP credit/(expense) 1,965 (1,256)
IPO professional fees and costs (604) -
Accelerated share based payment charges (374) -
987 (1,256)
In addition to equity settled share based payment charges in respect of share
options and warrants, the Group, prior to IPO, also had an LTIP in place with
a bonus arrangement payable. Under the accounting standard this was treated as
cash settled. However, the arrangement has been cancelled as of 10 February
2022 and replaced with a new equity settled arrangement and conditions. The
prior LTIP was linked to the CPHGL value and share price over the 3 year
period to September 2023 with the accruals booked in non-current liabilities.
The charge for the period ended 30 June 2021 was £1,256,000 including the
related national insurance costs and the total non-current liability accrued
at 30 June 2021 was £1,965,000 reflecting a significant increase in the share
price in the period following the receipt of initial customer orders. The
derecognition of this liability has been disclosed as exceptional in view of
its impact on the period and that no cash was payable in the short term.
The new equity settled arrangement is in respect of options over up to
10,608,980 shares at an exercise price of £0.085 per share. Exercise from 30
June 2024 of 25% is subject to remaining an employee and 75% also to sales
related performance conditions.
The accrued cash settlement liability has therefore been credited to the
income statement in the period ended 30 June 2022 as an exceptional credit
with no liability at the period end resulting in the significant reduction in
non current accruals.
The fair value of the total share based payment in respect of the new
arrangement is £1,810,000 which is being expensed over the vesting period
from grant date on 10 February 2022 to the vesting date of 30 June 2024 to the
extent to which options are expected to vest, with a charge of £74,000 in the
period to June 2022.
The share options that were in place in 2021 all vested at the date of the IPO
and were exercised or replaced by options exercisable at any time with a
consequential acceleration and expense of the remaining associated share based
payments of £374,000.
As these earlier arrangements were linked to the IPO which is considered to be
a one off event and in view of the amounts these have been shown as
exceptional credits or charges in the period. The IPO related professional
fees and costs directly related to the IPO of £604,000 which have been
expensed in the period ended 30 June 2022 have also been disclosed as
exceptional.
5. Earnings per share
The calculation of the basic and diluted loss per share is based on the
following data:
Six months ended 30 June 2022 Six months ended 30 June 2021
£'000 £'000
Loss for the purpose of basic earnings per share being net loss attributable
to the shareholders
(1,106) (2,084)
Six months ended 30 June 2022 Six months ended 30 June 2021
Number of shares £'000 £'000
Weighted average number of ordinary shares for the purposes of basic earnings
per share
245,053,907 183,302,694
The weighted average is calculated applying the equivalent number of Clean
Power Hydrogen plc shares to each period.
There is no dilutive effect on a loss. There are potentially dilutive options
in place over 24,035,420 ordinary shares at 30 June 2022.
6. Intangible fixed assets
Development costs Patents Software Total
£'000 £'000
£'000 £'000
Cost
At 31 December 2021 1,060 123 17 1,200
Additions 297 23 34 354
Foreign exchange movements - 12 - 12
At 30 June 2022 1,357 158 51 1,566
Accumulated depreciation
At 31 December 2021 - 7 17 24
Charge for the period - 6 4 10
Foreign exchange movements - 5 - 5
At 30 June 2022 - 18 21 39
Net book amount
At 30 June 2022 1,357 140 30 1,527
At 31 December 2021 1,060 116 - 1,176
7. Inventories
30 31 December 2021
June 2022
£'000 £'000
Raw materials and consumables 570 9
Work in progress 3,319 2,073
3,889 2,082
8. Trade and other receivables
30 31 December 2021
June 2022
£'000 £'000
Current
Other receivables 688 282
Prepayments 1,397 422
2,085 704
Non-current
Other receivables 120 120
At 30 June 2022, prepayments include £1.1m of payments made in advance to
suppliers.
9. Current asset investments
The cash raised from the IPO has been placed in longer term bank deposits
where it is not forecast to be needed in the short term, and in accordance
with the IFRS accounting policy, this £21m of bank deposits is shown in
current asset investments.
10. Trade and other payables
30 31 December 2021
June 2022
£'000 £'000
Current
Trade payables 557 376
Other payables 48 14
Taxation and social security costs 109 48
Accruals 180 97
Deferred income 2,636 2,237
3,530 2,772
Non-current
Accruals - 1,965
Deferred income 278 278
278 2,243
£2.6m of the deferred income relates to advance payments from customers
(2021: £2.1m).
11. Share capital
The movements in the Company's share capital were as follows:
Number of £0.01 shares Nominal Share premium
£'000 £'000
One £1 share issued on incorporation, subdivided into 100 £0.01 shares 100 - -
Shares issued in exchange for CPHGL shares 185,267,700 1,852 -
Exercise of warrants 2,075,280 21 75
Exercise of options 11,410,220 114 285
Placing shares issued at £0.45 each 66,666,667 667 29,333
Share issue costs - - (2,055)
268,419,967 2,654 27,638
The issue of shares resulted in a share premium of £27,638,000 (net of
£2,055,000 of share issue costs incurred).
The issue of shares with a nominal value of £1,852,677 in exchange for the
9,263,385 £0.001 shares in CPHGL with a nominal value of £9,263 and share
premium of £5,545,118 results on elimination of the difference in a credit to
a merger reserve of £3,701,704 in accordance with the merger accounting
principles as set out in note 2.
12. Related party transactions
A loan advanced to the group of £382,000 at 31 December 2021 (30 June 2021:
£387,000) from Streamstown Mouldings Limited, incorporated in the Republic of
Ireland and controlled by Joe Scott, a director of the company was interest
free with no fixed repayment terms. This loan was fully repaid in February
2022. Directors remuneration during the 6 month period ended 30 June 2022
amounted to £367,264.
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