REG - CYKEL AI PLC - Interim results for the 6 months to 30 June 2024
01/10/2024 07:00
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RNS Number : 3482G CYKEL AI PLC 01 October 2024
01 October 2024
Cykel AI PLC
("Cykel" or "the Company")
Interim results for the 6 months to 30 June 2024
Cykel (LSE: CYK), a UK-based technology company specialising in artificial
intelligence ("AI") products that can interact with any UI, website, or API
using natural language commands, announces its unaudited financial results for
the six months ended 30 June 2024.
Highlights:
· Successfully completed the acquisition of Aquis-listed Cykel AI plc
(now called Cykel AI Development Ltd) on 27 June 2024 with a combined market
capitalisation of approximately £20million
· The acquired Company, now called Cykel Development AI Ltd:
§ Raised a total of £0.3million in a pre-IPO funding round
§ Successfully completed an IPO on London's AQSE Growth Market (AQSE) on 25
October 2023 with a market capitalisation of approximately £6 million
§ Raised £1.75million in total before expenses via a placing and
subscription at 3p per share at flotation
§ Successfully launched the Cykel AI product and partnership program
Outlook:
• The deal flow of potential partners and clients remains strong and the
Directors continue to evaluate exciting new opportunities that will generate
long-term value for investors
• The Company is well positioned to take advantage of the growing B2B AI
market as it continues to develop rapidly.
Commenting on the results, Jonathan Bixby, Executive Director of Cykel AI,
said:
"The successful acquisition of Aquis-listed Cykel AI plc (now called Cykel AI
Development Ltd) and the Company's successful readmission to trading on 27
June 2024 and fundraise indicates investor appetite for this innovative
chapter in B2B AI. It has provided us with the capital and agency to become a
credible player in this nascent market. We look forward to making further
progress in this exciting space as investors continue to gain confidence in
the development of our technical capabilities"
The directors of Cykel AI plc accept responsibility for this announcement.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
For further information, please contact:
Cykel AI plc
Jonathan Bixby Via First Sentinel
First Sentinel (Corporate Adviser)
Brian Stockbridge brian@first-sentinel.com (mailto:brian@first-sentinel.com)
+44 (0) 7858 888 007
CYKEL AI PLC
INTERIM CONDENSED FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 30 JUNE 2024
INTERIM CONDENSED FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Interim Management Report
The successful acquisition of Aquis-listed Cykel AI plc (now called Cykel AI
Development Ltd), the Company's successful readmission to trading on 27 June
2024 and recent fundraise indicate investor appetite for this innovative
chapter in B2B AI. It has provided us with the capital and agency to become a
credible player in this nascent market. We look forward to making further
progress in this exciting space as investors continue to gain confidence in
the development of our technical capabilities.
Statement of Directors' Responsibilities
The directors are responsible for preparing the interim management report in
accordance with applicable law and regulations. The directors confirm that the
interim condensed financial information has been prepared in accordance with
International Accounting Standard 34 ('Interim Financial Reporting') as
endorsed for use in the United Kingdom.
The interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules paragraphs 4.2.7 R and 4.2.8
R, namely:
• the interim condensed financial statements, which have been prepared in
accordance with applicable accounting standards, give a true and fair view of
the assets, liabilities, financial position, and profit or loss of the Company
as required by DTR 4.2.4R;
• an indication of important events that have occurred during the six months
ended 30 June 2024 and their impact on the condensed set of financial
information and a description of the principal risks and uncertainties for the
remaining six months of the year; and
• material related-party transactions during the six months ended 30 June
2024 and any material changes in the related-party transactions described in
the Annual Report and Accounts for the period ended 31 December 2023.
The interim management report was approved by the Board of Directors and the
above responsibility statement was signed on its behalf by:
Nick Lyth
Director
Date: 30 September 2024
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
6 month period ended June 2024 6 month period ended June 2023
(unaudited) (unaudited)
Notes £ £
Revenue 466 -
Other operating income 123,000 -
Administrative expenses 5 (4,107,712) (292,756)
Operating loss (3,984,246) (292,756)
Finance costs (821) (352,864)
Other gains/(losses) - (927,172)
Gain/(loss) on foreign exchange 53,398
Profit/(loss) before taxation (3,985,067) (1,519,394)
Income tax expense - -
Profit/(loss) after taxation (3,985,067) (1,519,394)
Other comprehensive income 1,968 -
Profit/(loss) and total comprehensive loss for the year (3,983,098) (1,519,394)
Profit/(Loss) per share from continuing
operations attributable to the equity owners
Basic profit/(loss) per share (pence per share) 2 (1.03) (0.15)
Diluted profit/(loss) per share (pence per share) (1.03) (0.15)
The income statement has been prepared on the basis that all operations are
continuing operations.
The notes on pages 10 to 13 form part of these financial statements.
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Notes As at As at
30 June 2024 31 December 2023
(unaudited) (audited)
ASSETS £ £
Non-current assets
Property, plant and equipment 266 518
Intangible assets 221,408 103,130
Total non-current assets 221,674 103,648
Current assets
Trade and other receivables 3 100,468 171,691
Cash and cash equivalents 515,036 1,396,453
Total current assets 615,504 1,568,144
Total assets 837,178 1,671,793
EQUITY AND LIABILITIES
Equity
Share capital 798,310 326,803
Share premium 3,481,746 3,101,196
Share-based payment reserve 5 4,070,756 1,198,366
Acquisition reserve (392,105) -
Convertible loan note reserve - 12,688
Retained earnings (7,343,864) (3,360,766)
Total equity 614,843 1,278,288
Current liabilities
Trade and other payables 4 222,335 232,618
Convertible loan notes - 160,887
Total current liabilities 222,335 393,505
Total liabilities 222,335 393,505
Total equity and liabilities 837,178 1,671,793
The notes on pages 10 to 13 form part of these financial statements.
INTERIM PARENT COMPANY STATEMENT OF FINANCIAL POSITION
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Notes As at As at
30 June 2024 31 December 2023
ASSETS £ £
Non-current assets
Property, plant and equipment 266 518
Total non-current assets 266 518
Current assets
Trade and other receivables 3 1,000 5,458
Cash and cash equivalents 29,420 9,238
Total current assets 30,420 14,696
Total assets 30,686 15,214
EQUITY AND LIABILITIES
Equity
Share capital 201,021 121,620
Share premium 1,519,531 1,253,355
Share based payment Reserve 91,100 91,100
Convertible loan note reserve - 12,688
Retained earnings (1,860,689) (1,793,501)
Total equity (49,037) (314,738)
Current liabilities
Trade and other payables 4 79,723 169,065
Convertible loan notes - 160,887
Total current liabilities 79,723 329,952
Total liabilities 79,723 329,952
Total equity and liabilities 30,686 15,214
The notes on pages 10 to 13 form part of these financial statements.
The financial statements were approved by the board of directors and
authorised for issue on 30 September 2024 and are signed on its behalf by:
N Lyth
Director
Company Registration No. 11155663
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Issued Share Share SBP Convertible loan note reserve Acquisition reserve Retained Total
Capital Premium Reserve Earnings Equity
£ £ £ £ £ £ £
As at 1 Jan 2023 102,816 810,219 91,000 - - (1,963,035) (958,500)
Profit for the year - - - - - (1,519,394) (1,519,394)
Total comprehensive income for the year
- - - - - (1,519,394) (1,519,394)
Shares issued during the year - - - - - - -
Issue of convertible loan notes - - - - - - -
Acquisitions - - - - - - -
Total transactions with owners - - - - - - -
Period ended 30 June 2023 102,816 810,219 91,000 - - (3,482,429) (2,478,294)
Issued Share Share SBP Convertible loan note reserve Acquisition reserve Retained Total
Capital Premium Reserve Earnings Equity
£ £ £ £ £ £ £
As at 1 Jan 2024 326,803 3,101,196 1,198,366 12,688 - (3,360,766) 1,278,287
Profit for the year -
- - - - (3,983,098) (3,983,098)
Total comprehensive income for the year
- - - - - (3,982,098) (3,983,098)
Shares issued during the year 471,507 380,550 2,872,390 - - - 3,724,447
Issue of convertible loan notes - - - (12,688) - - (12,688)
Acquisitions - - - - (392,105) - (392,105)
Total transactions with owners 471,507 380,550 2,872,390 (12,688) (392,105) - 3,319,653
Period ended 30 June 2024 798,310 3,481,746 4,070,756 - (392,105) (7,343,864) 614,843
The notes on page 10 to 13 form part of these financial statements.
INTERIM PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Issued Share Share SBP Convertible loan note reserve Acquisition reserve Retained Total
Capital Premium Reserve Earnings Equity
£ £ £ £ £ £ £
As at 1 Jan 2023 102,816 810,219 91,000 - - (1,963,035) (958,500)
Profit for the year - - - - - (1,519,394) (1,519,394)
Total comprehensive income for the year
- - - - - (1,519,394) (1,519,394)
Shares issued during the year - - - - - - -
Issue of convertible loan notes - - - - - - -
Acquisitions - - - - - - -
Total transactions with owners - - - - - - -
Period ended 30 June 2023 102,816 810,219 91,000 - - (3,482,429) (2,478,294)
Issued Share Share SBP Convertible loan note reserve Acquisition reserve Retained Total
Capital Premium Reserve Earnings Equity
£ £ £ £ £ £ £
As at 1 Jan 2024 121,620 1,253,355 91,100 12,688 - (1,793,501) (314,738)
Profit for the year
- - - - - (67,189) (67,189)
Total comprehensive income for the year
- - - - - (67,189) (67,189)
Shares issued during the year 471,507 266,176 - - - - 737,683
Issue of convertible loan notes - - - (12,688) - - (12,688)
Acquisitions - - - - (392,105) - (392,105)
Total transactions with owners 471,507 266,176 - (12,688) (392,105) - 332,890
Period ended 30 June 2024 593,127 1,519,531 91,100 - (392,105) (1,860,689) (49,037)
The notes on page 10 to 13 form part of these financial statements.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
6 month period ended June 2024 6 month period ended June 2023
Note £ £
Cash flow from operating activities
Loss for the financial year (3,983,098) (1,519,394)
Adjustments for:
Write down / Impairment 252 252
Foreign exchange movements - (53,398)
Finance costs 815 352,798
Interest paid 6 -
Adjustment on disposal of investments (1,485) 927,172
Services settled by issue of warrants 5 (2,986,764) -
Changes in working capital:
Decrease / (Increase) in trade and other receivables 71,223 (15,919)
Increase / (decrease) in trade and other payables (10,283) 134,501
Net cash used in operating activities (935,806) (173,988)
Cash flows from investing activities
Purchase of intangible assets (118,278) -
Net cash used in investing activities (118,278) -
Cash flows from financing activities
Proceeds from issue of shares 172,666 -
Loans - 163,575
Net cash (used in)/generated from financing activities 172,666 163,575
Net (decrease)/increase in cash and cash equivalents (881,417) (10,413)
Cash and cash equivalents at beginning of the period 1,396,453 22,994
Foreign exchange impact on cash - (6,117)
Cash and cash equivalents at end of the period 515,036 6,464
The accompanying notes on pages 10 to 13 form part of the financial statements
INTERIM PARENT COMPANY STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
6 month period ended June 2024 6 month period ended June 2023
2024 2023
Note £'000 £
Cash flow from operating activities
Loss for the financial year (67,189) (1,519,394)
Adjustments for:
Write down / Impairment 252 252
Foreign exchange movements - (53,398)
Finance costs 815 352,798
Interest paid 6 -
Adjustment on disposal of investments (1,485) 927,172
Services settled by issue of warrants - -
Changes in working capital:
Decrease / (Increase) in trade and other receivables 4,458 (15,919)
Increase / (decrease) in trade and other payables (89,342) 134,501
Net cash used in operating activities (152,485) (173,988)
Cash flows from investing activities
Purchase of intangible assets - -
Net cash used in investing activities - -
Cash flows from financing activities
Proceeds from issue of shares 172,666 -
Loans - 163,575
Net cash (used in)/generated from financing activities 172,666 163,575
Net (decrease)/increase in cash and cash equivalents 20,182 (10,413)
Cash and cash equivalents at beginning of the period 9,238 22,994
Foreign exchange impact on cash - (6,117)
Cash and cash equivalents at end of the period 29,420 6,464
The accompanying notes on pages 10 to 13 form part of the financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
1 Accounting policies
Company information
CYKEL AI PLC is a public company limited by shares incorporated and domiciled
in England and
Wales. The registered office is 16 Great Queen Street, London, England, WC2B
5DG.
The principal activities of the company are set out in the Directors Report on
page 1.
1.1 Basis of preparation and statement of compliance
The interim condensed financial statements are for the six months ended 30
June 2024 and have been prepared in accordance with IAS 34 'Interim Financial
Reporting'; the International Accounting Standards endorsed for use in the
United Kingdom ("IFRS"); on a going concern basis and under the historical
cost convention except for revaluation of certain financial instruments.
The interim condensed financial statements do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006. They do not
include all of the information required in annual financial statements in
accordance with IFRS, and should be read in conjunction with the financial
statements for the year ended 31 December 2023.
The condensed financial information presented here for the year ended 31
December 2023 does not constitute the Company's statutory accounts for that
year, but is derived from those accounts. Statutory accounts for the year
ended 31 December 2023 have been delivered to the Registrar of Companies. The
auditors reported on those accounts: their report was unqualified, did not
draw attention to any matters by way of emphasis and did not contain a
statement under s498(2) or (3) of the Companies Act 2006.
The condensed financial information for the period ended 30 June 2024 has not
been audited or reviewed in accordance with the International Standard on
Review Engagements 2410 issued by the Auditing Practices Board.
1.2 Accounting policies, critical estimates and judgements
The accounting policies, methods of computation, critical estimates and
judgements followed in the interim condensed financial statements are in
accordance with those followed in preparing the financial statements for the
year ended 31 December 2023.
A number of amendments to IFRS became applicable for the current reporting
period. The Company did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these amended standards.
The preparation of the interim condensed interim financial statements requires
directors to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
judgements and estimates.
2 Loss per share
6 month period ended June 2024 6 month period ended June 2023
£ £
Number of shares
Weighted average number of ordinary shares for basic and diluted earnings per 387,097,983 10,281,600
share
Loss
Loss for the period from continued operations (3,985,067) (1,519,394)
Loss per share for continuing operations
Basic loss per share (1.03) (0.15)
Diluted loss per share (1.03) (0.15)
The share options and warrants are considered to be anti-dilutive.
3 Trade and other receivables
GROUP 30 June 31 December 2023
2024
£ £
VAT recoverable 68,126 93,902
Prepayments 29,842 75,289
Other receivables 2,500 2,500
100,468 171,691
COMPANY 30 June 31 December 2023
2024
£ £
VAT recoverable 1,000 5,458
1,000 5,458
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
4 Trade and other payables
GROUP 30 June 31 December 2023
2024
£ £
Trade payables 174,307 129,900
Accruals 43,210 95,968
Social security and other taxation 4,818 6,750
222,335 232,618
COMPANY 30 June 31 December 2023
2024
£ £
Trade payables 45,655 100,474
Accruals 34,040 63,240
Social security and other taxation 28 5,351
Other payables
79,723 169,065
5 Share based payment reserve
GROUP
£
Balance as at 31 December 2023 1,198,366
Warrants issued in the period(1) 3,979,656
Warrants lapsed/expired during the period(2) (1,107,266)
Share based payment reserve total 4,070,756
Warrants issued in the period(3) 114,374
(1) On the 26(th) June 2024 the Company granted 102,927,586 warrants to staff
and contractors. The warrants vested on grant, have an expiry date of 3
years from 25 October 2023, and an exercise price of 1 pence.
On the 26(th) June 2024 the Company granted a further 38,117,116 warrants to
staff and contractors. The warrants vested on grant, have an expiry date of 5
years from 25 October 2023, and an exercise price of 3 pence.
(2) Reversal of all warrant valuations made prior to the reverse takeover of
Cykel AI Plc by Mustang Energy Plc
(3) On the 1(st) May 2024 the Company granted 7,425,000 warrants to the
previous management of Mustang Energy Plc. The warrants vested on grant,
expire on the 26(th) October 2026, and have an exercise price of 5 pence.
6 Going Concern
The Company had not yet commenced trade in the Interim period. However, the
Directors are of the opinion that the Company has adequate working capital to
meet its obligations over the next 12 months. The Directors have focused on
carefully managing administrative costs in relation to the Company and
anticipate and forecast that the Company will be strongly cash generative. As
a result, the Directors have adopted the going concern basis of accounting in
the preparation of the interim financial statements.
7 Events after reporting date
On the 8(th) July 2024, the Company announced a placement of 5,833,333 new
ordinary shares of £0.01 each in the share capital of the Company ("Ordinary
Shares") at an issue price of 6p per Ordinary Share, raising gross proceeds of
£350,000 (before expenses).
On the 30(th) September 2024, The Company announced a placement of 14,285,714
new ordinary shares of £0.01 each in the share capital of the Company
("Ordinary Shares") at an issue price of 5.25p per Ordinary Share, raising
gross proceeds of circa £750,000 (before expenses).
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