REG - Eneraqua Technolgs. - Interim Results
10/10/2024 07:00
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RNS Number : 6197H Eneraqua Technologies PLC 10 October 2024
10 October 2024
Eneraqua Technologies plc
("Eneraqua", the "Company" or the "Group")
Interim Results
Solid start to H1, with focus on project delivery in H2
Eneraqua Technologies plc, a provider of specialist energy and water
efficiency solutions, announces its interim results for the six months ended
31 July 2024 ("H1 FY25").
Financial Highlights
· Revenue increased 15% to £29.9m (H1 FY24: £26.0m)
· Adjusted EBITDA loss before tax of £2.4m (H1 FY24: £0.8m profit) and
Adjusted loss before tax of £3.8m (H1 FY24: (£0.4m)) reflecting the impact
of the earlier than expected UK General Election together with the project mix
in the period and the increased overheads needed to support the level of
revenue for the year
· Adjusted diluted EPS of (7.85p) (H1 FY24: 0.47p)
· Net cash (excluding IFRS16 liabilities) of £0.3m (H1 FY24: £0.5m)
· Group's order book across Energy and Water stands at £114m (H1 FY24: £118m
and FY24 £102m) of which, taking a prudent view, over 40% is now expected to
be delivered in H2 FY25
Operational and Strategic Highlights
· The earlier than expected UK General Election together with subsequent
statements by the new Government impacted performance due to delays in project
approvals.
· These delays on decision making are now reducing as Government policy becomes
clear with a renewed emphasis on growth and investment.
· In Energy, delivery of major projects such as the ground-source heat pump
installation for the British Geological Survey ("BGS") in Nottingham is
progressing well. This is being documented as an exemplar case study for the
UK and Europe on installation of such commercial scale retrofit systems.
· Water projects proceeding well including nitrate neutrality project in Kent
where some 4,000 homes are being fitted with our patented Control Flow HL2024
technologies. Follow-on orders received from existing and new water
utilities and local authorities.
· Control Flow HL2024 also adopted by Livensa for its 5,000 all student
accommodation flats in Spain and Portugal, and by Andorra for all its
municipal parks and gardens
Outlook
· Greater clarity of direction and speed of decision-making in recent weeks,
particularly with regard to Water programmes
· Rapid build up of operational capability underway to deliver projects in
remaining months of FY25
· Expect return to profit for H2 FY25 and to achieve Adj. PBT for FY25 in line
with market expectations*
· Demand remains strong with significant market opportunity for decarbonisation,
water efficiency and nutrient neutrality solutions
Commenting on the results, CEO of Eneraqua Technologies, Mitesh Dhanak,
said: "I am pleased with the progress the Group has made so far this year.
"While the earlier than anticipated UK General Election with the associated
purdah and the subsequent period while the new Government confirmed its policy
priorities and commitment to growth has caused decisions and approvals to be
delayed by clients, this is now easing. We are rapidly building our
operational capability to deliver the required work for our clients this
financial year with most projects continuing into FY26 and beyond.
"With a healthy project pipeline; the UK Government's increased focus on
meeting net zero and building 1.5 million new homes over the next five years;
together with nascent growth internationally, we remain confident in the
ability of the Group to deliver for its customers and shareholders alike.
"We have the people, product and market position to accelerate growth across
the Group, supported by the drive to net-zero, water efficiency and nutrient
neutrality.
An overview of the interim results is available to watch here:
https://bit.ly/ETP_H125overview (https://bit.ly/ETP_H125overview)
* The Company considers that the consensus forecasts for Adjusted PBT for the
year ended 31 January 2025 is £2.5m.
Investor Presentation
A presentation to retail investors will be hosted at 9am this morning.
Investors are invited to sign up for the presentation via the PI World
platform using the following link:
https://us02web.zoom.us/webinar/register/WN_4ukwqRhzQoCd43N-uERhqg
(https://us02web.zoom.us/webinar/register/WN_4ukwqRhzQoCd43N-uERhqg) .
Questions can be submitted during the presentation.
For further information please contact:
Eneraqua Technologies plc Via Alma
Mitesh Dhanak, Chief Executive Officer
James Lamb, Interim Chief Financial Officer
Panmure Liberum Limited (Nomad and Joint Broker) Tel: 0203 100 2000
Edward Mansfield
John More
Anake Singh
Singer Capital Markets (Joint Broker) Tel: 020 7496 3000
Sandy Fraser
Asha Chotai
Alma Strategic Communication (Financial PR)
Justine James Tel: 020 3405 0205
Andy Bryant eneraqua@almastrategic.com
Will Ellis Hancock
Emma Thompson
CEO Statement
The Group made a good start to the year but as flagged at the time of the AGM,
the earlier than anticipated calling of the UK General Election on the 22 May
2024 has affected performance in H1 and for the financial year.
Once a general election is called, a legal restriction is placed on our public
sector clients proceeding with many types of projects until after the election
was complete. The incoming Government then raised concerns on the state of
the public finances and launched a planning consultation. This did not
propose any significant changes to the neutrality rules but did not make clear
that offset solutions such as ours were allowed. These two issues caused
further hesitation by many of our public sector and private utility clients
leading to additional delays on decision making and approvals.
As the government has now established itself and made clear its policy
positions, the position has improved in recent weeks with approvals received
or expected for several key projects, mainly in the water sector. As a
result, our focus is on the rapid gearing of operational capability to meet
the compressed delivery timescales.
Financial Performance
The Company's revenue in the period to 31 July 2024 was £29.9m (H1 FY24:
£26.0m) with an adjusted loss before tax of £3.8m (H1 FY24: adjusted loss
before tax of £0.4m).
The increased adjusted loss before tax primarily reflects an anticipated
reduction in gross margins reflecting contract mix and, to a lesser extent,
increased overheads which are in place to support the level of revenue which
we expect to deliver over the financial year.
The net cash balance (excluding IFRS16 liabilities) at 31 July was £0.3m (H1
FY24: £0.5m). Efficient working capital management continues to be a key
focus for management and revised processes and disciplines have led to greater
working capital efficiency which we intend to maintain as we now enter a
period of growth in activity.
Market
The new UK Government has set a higher priority on achieving net zero and
reducing energy costs and this is being reflected in the goals set by public
bodies. Within the private sector, there is a similar focus on these areas
driven by regulatory necessity as well as economic imperative driving
companies to focus more on improving sustainability whilst also delivering
cost savings in many cases.
The focus on increasing housebuilding in the UK, with the Government's target
of 1.5 million houses in the next five years, is expected to create additional
opportunities for our water offering which can facilitate the unlocking of
sites previously held back due to water and nitrate concerns. This sits
alongside the existing opportunities created by the need to improve water
efficiency across all of our target markets.
In the near term we continue to see the steady normalisation of the
inflationary environment that adversely impacted public client budgets in the
UK.
Operational and strategic progress
We operate in two key markets, Energy and Water. Energy is focused on clients
with end of life gas, oil or electric heating and hot water systems and we
provide turnkey retrofit district or communal heating systems based on high
efficiency gas, ground or air-source heat pump solutions. As well as
public sector housing, we are increasingly focussed on commercial buildings
such as schools, hospitals and leisure centres. Our Water teams focus on
water efficiency upgrades for utilities, property developers and non-domestic
clients including hotels, hospitals and care homes.
In Energy, we will shortly complete the exemplar ground-source heat pump
installation for the British Geological Survey ("BGS") in Nottingham. This
is intended to provide an example to organisations in the UK and Europe as the
BGS seeks to encourage adoption of heat pump technologies internationally.
Our other major projects include Kingston NHS Trust and Lancaster West which
are also proceeding to plan. At both we are designing and installing a range
of technologies that will result in substantial reductions in CO(2) emissions
and energy costs.
In Water, current projects are also proceeding well including the nitrate
neutrality programme in Kent where some 4,000 homes are being upgraded with
our technology. In addition, we have also received follow-on orders from
existing and new water utilities and local authorities for upgrading homes and
schools. Our patented Control Flow HL2024 has been adopted by Livensa for
its 5,000 student accommodation flats in Spain and Portugal and by Andorra for
all its municipal parks and gardens.
Follow-on studies in both the UK and India involving over 1,000 homes have
also replicated the savings seen from the use of our Control Flow HL2024
products in previous trials, thereby continuing to build client confidence.
Follow on trials in an Indian city are currently being planned.
Orderbook
The Group's order book of contracted or secured work stands at £114m (£118m
H1 FY24) of which, taking a prudent view, over 40% is now anticipated to be
delivered in the remainder of H2 FY25.
The orderbook has increased by £12m since the start of the year (£102m at
31(st) January 2024). Additionally, we are actively pursuing over £300m of
new opportunities.
Outlook
The hiatus in decision making and the placing of orders affected performance
in H1 and the start of H2. In recent weeks this position has improved with
both greater clarity of direction and speed of decision making markedly
increasing, reinforcing the Board's confidence for the second half of the year
and beyond.
Our focus is now on a rapid build-up of our operational capability in order to
deliver successfully the large volume of work which our customers require over
the next few months.
Despite the delay in contracts being placed we expect a strong return to
profit for the second half and a profit for the year as a whole. Provided
there are no material operational delays, the Board expects total revenue from
current and expected contracts to be slightly lower than current market
forecasts but with the stronger margins in H2 due to the project mix allowing
the Company to deliver Adjusted PBT in line with market expectations for FY25.
In addition, the major projects commenced this year will continue in
delivery through H1 2026.
The rapid build-up of activity will result in an investment in working capital
that will not fully unwind during the current financial year. As a result, the
Group expects to report a net cash position (excluding IFRS 16) at the year
end slightly lower than previously expected. We expect the cash position to
improve in H1 of the next financial year, as projects continue and delivery
milestones are reached.
The contracts which we will be working on in the remainder of the current
financial year will in almost all cases continue into next year and, in some
cases, beyond. This, together with clear indications from the new UK
Government of its commitment to accelerate the pace of progress towards
decarbonisation provide a solid base for further progress. We have the people,
market position and products to accelerate our growth to take advantage of the
opportunities in front of us. The past 18 months have been a very difficult
period for the Company but we look to the future with increasing confidence.
Mitesh Dhanak
CEO
9 October 2024
CFO Statement
I am pleased to report on Eneraqua's unaudited interim results for the six
months ended 31 July 2024).
Revenue
Group revenue increased by 15% to £29.9m, (H1 FY24: £26.0m).
31 Jul 2024 31 Jul 2023
Revenue £29.9m £26.0m
Revenue growth 15% 7%
Adjusted EBITDA(1) (£2.4m) £0.8m
Adjusted Loss Before Tax(2) (£3.8m) (£0.4m)
Net cash (excluding IFRS 16) £0.3m £0.5m
Gross margin was 21% (H1 FY24: 34%). This reflects the project mix delivered
in the period.
The increase in the Adjusted Loss Before Tax was attributable to reduced Gross
Margins and an increase in operating expenses(4) to £9.4m (H1 FY24: £8.1m).
This reflects the operational capability required to deliver forecast contract
volume in the second half of the year.
Adjusting and Exceptional Items
The total pre-tax adjusting items, excluding depreciation and amortisation, in
the period were £0.6m. These were £0.2m of charges for share-based payments
(H1 FY24: £0.1m) and £0.4m of exceptional costs (H1 FY24: nil).
Exceptional costs of £0.4m in the period (H1 FY24: nil) are in respect of
salary and redundancy costs following the headcount reduction exercise
undertaken by the Group at the end of FY24. No further exceptional charges are
expected during the second half year.
Cash
The Group ended the period with net cash (excluding IFRS 16 liabilities) of
£0.3m compared with £0.5m of net cash at 31 July 2023.
Gross cash was £4.7m (H1 FY24: £6.0m). Bank borrowings excluding leasing
arrangements were £4.4m (H1 FY24: £5.5m). The main component is a loan which
is being amortised over four years from drawdown and stands at £2.7m at 31
July 2024 (H1 FY24: £4.2m).
Trade and other receivables was £14.4m (H1 FY24: £23.7m). This reduction
reflects an improved process from valuation of work leading to a lowering of
accrued income from £16.1m (H1 FY24) to £8.1m (H1 FY25). This represents a
fall in accrued income days from 136 days in H1 FY24 to 71 days H1 FY25.
Capital expenditure was limited in H1, being £0.7m (H1 FY24: £0.5m),
including £0.4m plant and equipment mainly associated with further
development of the manufacturing facility in Toledo, Spain and £0.3m of
intangible asset additions in respect of research and development projects.
Headcount
The Group's full time equivalent ("FTE") employees at 31 July 2024 were 197
(31 July 2023: 191) and we continue to monitor this carefully to ensure the
business remains right-sized to deliver its goals.
(1)Operating profit prior to exceptional costs, share based payment charges,
depreciation of property, plant and equipment, depreciation of right-of-use
assets and amortisation of intangible assets. This is a non IFRS measure.
(2)Profit before tax prior to exceptional costs and share based payment
charges
(3)Cash from operating activities/EBITDA
(4)Operating expenses exclude depreciation and amortisation
James Lamb
Interim CFO
9 October 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 July
Six months to 31 Jul 2024 Six months to 31 Jul 2023 Twelve months to 31 Jan 2024
£'000
£'000
£'000
Note
Continuing operations
Revenue 3 29,925 26,047 53,818
Cost of sales (23,514) (17,174) (41,591)
Gross profit 6,411 8,873 12,227
Administrative expenses (10,105) (8,973) (17,865)
Exceptional costs 4 (400) - (1,594)
Operating loss (4,094) (100) (7,232)
Interest payable and similar expenses (294) (341) (667)
Loss before taxation (4,388) (441) (7,899)
Income tax 1,097 540 1,560
(Loss)/profit for the period from continuing operations (3,291) 99 (6,339)
Total (loss)/profit for the period attributable to equity holders of the (3,291) 99 (6,339)
parent
Items that will or may be reclassified to profit or loss
Exchange losses arising on translation of foreign operations (137) - (680)
Other comprehensive income (3,428) - (680)
Total comprehensive (loss)/income for the period attributable to equity (3,428) 99 (7,019)
holders of the parent
Basic earnings per share from continuing operations - pence 6 (9.91) 0.47 (18.98)
Diluted earnings per share from continuing operations - pence 6 (9.91) 0.47 (18.98)
The accompanying notes form part of the condensed interim consolidated
financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note 31 Jul 2024 31 Jul 2023 31 Jan 2024
£'000
£'000
£'000
Non-current assets
Intangible assets 9,713 9,255 9,122
Property, plant and equipment 2,979 3,251 2,991
Right-of-use assets 990 1,319 1,152
Deferred tax asset 567 - 720
Total non-current assets 14,249 13,825 13,985
Current assets
Inventory 3,573 2,924 3,349
Contract assets 1,592 3,119 1,493
Trade and other receivables 7 14,376 23,706 21,526
Current tax asset 630 - 701
Cash and cash equivalents 4,672 5,963 6,364
Total current assets 24,843 35,712 33,433
TOTAL ASSETS 39,092 49,537 47,418
Equity attributable to owners of the parent
Called up share capital 332 332 332
Share premium account 10,113 10,113 10,113
Merger reserve (5,490) (5,490) (5,490)
Other reserves 647 7 784
Retained earnings 9,935 20,055 13,226
Total equity 15,537 25,017 18,965
Current liabilities
Borrowings 8 2,046 1,457 1,913
Trade and other payables 17,866 16,866 21,756
Lease liabilities 742 428 487
Total current liabilities 20,654 18,751 24,156
Non-current liabilities
Borrowings 8 2,371 4,023 3,288
Lease liabilities 530 1,441 1,009
Deferred tax liability - 305 -
Total non-current liabilities 2,901 5,769 4,297
Total liabilities 23,555 24,520 28,453
TOTAL EQUITY AND LIABILITIES 39,092 49,537 47,418
The accompanying notes form part of the condensed interim consolidated
financial statements
CONSOLIDATED STATEMENT OF CASHFLOWS
For the six months ended 31 July
GROUP Six months to 31 Jul 2024 Six months to 31 Jul 2023 Twelve months to 31 Jan 2024
£'000
£'000
£'000
Cash flow from operating activities
(Loss)/profit for the financial period (3,291) 99 (6,339)
Adjustments for:
Amortisation of intangible assets 459 204 788
Depreciation of property, plant and equipment 515 297 824
Depreciation on right-of-use assets 229 333 412
Interest payable 243 283 535
Lease liability finance charge 51 65 132
Interest receivable - (7) -
Taxation credit (1,097) (540) (1,560)
Corporation tax received / (paid) 281 (71) (1,299)
Foreign exchange (1) 39 318
Share based payment charge 198 58 279
Changes in working capital:
Increase in inventory (224) (367) (792)
Decrease in trade and other receivables 7,051 2,256 5,505
(Decrease) / increase in trade and other payables (3,956) 2,168 8,124
Net cash increase from operating activities 458 4,817 6,927
Cash flow from investing activities
Purchase of intangible assets (329) (356) (852)
Purchase of property, plant and equipment (416) (107) (541)
Acquisition of businesses - net of cash acquired - (386) (378)
Net cash outflow from investing activities (745) (849) (1,771)
Cash flows from financing activities
Proceeds from borrowings - - 427
Repayment of borrowings (916) (685) (1,001)
Interest paid (243) (283) (535)
Interest received - 7
Repayment of lease liabilities (246) (268) (516)
Dividends paid - - (391)
Net cash outflow from financing activities (1,405) (1,229) (2,016)
Net (decrease) / increase in cash and cash equivalents (1,692) 2,739 3,140
Cash and cash equivalents at beginning of period 6,364 3,224 3,224
Cash and cash equivalents at the end of the period 4,672 5,963 6,364
The accompanying notes form part of the condensed interim consolidated
financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 July
Share Capital Share Premium Merger Reserve Other Reserves Retained Earnings Total Equity
£000 £000 £000 £000 £000 £000
At 1 February 2023 332 10,113 (5,490) 104 19,956 25,015
Profit for the period - - - - 99 99
Total comprehensive profit for the period - - - - 99 99
Other(1) - - - (97) - (97)
Total transaction with owners - - - (97) - (97)
Balance at 31 July 2023 332 10,113 (5,490) 7 20,055 25,017
At 1 August 2023 332 10,113 (5,490) 7 20,055 25,017
Loss for the period - - - - (6,438) (6,438)
Total comprehensive loss for the period - - - - (6,438) (6,438)
Reduction in share capital - - - - -
Dividends paid - - - - (391) (391)
Exchange differences arising on translation of foreign operations - - - 777 - 777
Total transaction with owners - - - 777 (391) 386
Balance at 31 January 2024 332 10,113 (5,490) 784 13,226 18,965
At 1 February 2024 332 10,113 (5,490) 784 13,226 18,965
Loss for the period - - - - (3,291) (3,291)
Total comprehensive loss for the period - - - - (3,291) (3,291)
Exchange differences arising on translation of foreign operations - - - (137) - (137)
Total transaction with owners - - - (137) - (137)
Balance at 31 July 2024 332 10,113 (5,490) 647 9,935 15,537
(1)Other includes share based payments, foreign exchange and other items
The accompanying notes form part of the condensed interim consolidated
financial statements.
Notes to the financial information
1. BASIS OF PREPARATION
The figures for the six months ended 31 July 2024 and 31 July 2023 are
unaudited and do not constitute statutory accounts.
As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial
Statements" in preparing this Interim Financial Information. The accounting
policies adopted are consistent with those applied by the Group in the
preparation of the annual consolidated financial statements for the year ended
31 January 2024.
The Group has not early adopted any standard, interpretation or amendment that
has been issued but is not yet effective. Several amendments and
interpretations apply for the first time in 2024, but these do not have a
material impact on the interim condensed consolidated financial statements of
the Group. The financial information for the year ended 31 January 2024 set
out in this interim report does not comprise the Group's statutory accounts as
defined in section 434 of the Companies Act 2006.
The statutory accounts for the year ended 31 January 2024, which were prepared
under international accounting standards in conformity with the requirements
of the Companies Act 2006, have been delivered to the Registrar of Companies.
The auditors reported on those accounts; their report was unqualified and did
not contain a statement under either Section 498(2) or Section 498(3) of the
Companies Act 2006 and did not include references to any matters to which the
auditor drew attention by way of emphasis.
1.1 Critical accounting judgements and key sources of
estimation uncertainty
The preparation of condensed Interim Financial Information requires the
Directors to make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. There are no
changes to critical accounting judgements and key sources of estimation
uncertainty from those disclosed in the annual accounts for the year ended 31
January 2024.
2. SEGMENT REPORTING
The following information is given about the Group's reportable segments:
The Chief Operating Decision Maker is the Board of Directors. The Board
reviews the Group's internal reporting in order to assess performance of the
Group. Management has determined the operating segment based on the reports
reviewed by the Board.
The Board considers that during the period ended 31 July 2024 the Group
operated in the three business segments according to the geographical location
of its operations and those being:
- United Kingdom
- Europe; and
- India
Six months to 31 July 2024 United Kingdom Europe India 2024
£'000 £'000 £'000 £'000
Revenue 29,375 383 167 29,925
Cost of sales (22,974) (532) (8) (23,514)
Gross Profit 6,401 (149) 159 6,411
Administrative expenses (8,695) (1,202) (208) (10,105)
Exceptional costs (400) - - (400)
Operating loss (2,694) (1,351) (49) (4,094)
Interest payable and similar expenses (170) (122) (2) (294)
Loss before tax (2,864) (1,473) (51) (4,388)
Taxation 1,088 16 (7) 1,097
Loss after tax (1,776) (1,457) (58) (3,291)
2. SEGMENT REPORTING (continued)
Net Assets as at 31 July 2024 United Kingdom Europe India 2024
£'000 £'000 £'000 £'000
Assets: 25,813 13,000 279 39,092
Liabilities (14,506) (8,799) (250) (23,555)
Net assets 11,307 4,201 29 15,537
Six months to 31 July 2023 United Kingdom Europe India 2023
£'000 £'000 £'000 £'000
Revenue 25,476 371 200 26,047
Cost of sales (16,802) (283) (89) (17,174)
Gross Profit 8,674 89 111 8,873
Administrative expenses (7,722) (1,092) (159) (8,973)
Operating profit/(loss) 952 (1,003) (49) (100)
Interest payable and similar expenses (325) (18) 3 (341)
Profit/(Loss) before tax 626 (1,021) (46) (441)
Taxation 464 82 (6) 540
Profit/(Loss) after tax 1,090 (940) (51) 99
Net Assets as at 31 July 2023 United Kingdom Europe India 2023
£'000 £'000 £'000 £'000
Assets: 37,373 11,647 517 49,537
Liabilities (12,254) (11,702) (564) (24,520)
Net assets / (liabilities) 25,119 (55) (47) 25,017
Twelve months to 31 January 2024 United Kingdom Europe India 2024
£'000 £'000 £'000 £'000
Revenue 52,561 676 581 53,818
Cost of sales (41,204) (322) (65) (41,591)
Gross Profit 11,357 354 516 12,227
Administrative expenses (14,971) (2,409) (485) (17,865)
Exceptional costs (1,594) - - (1,594)
Operating profit/(loss) (5,208) (2,055) 31 (7,232)
Interest payable and similar expenses (335) (333) 1 (667)
Profit/(Loss) before tax (5,543) (2,388) 32 (7,899)
Taxation 1,538 28 (6) 1,560
Profit/(Loss) after tax (4,005) (2,360) 26 (6,339)
2. SEGMENT REPORTING (continued)
Net Assets as at 31 January 2024 United Kingdom Europe India 2024
£'000 £'000 £'000 £'000
Assets: 35,998 11,060 360 47,418
Liabilities (18,105) (10,054) (294) (28,453)
Net assets 17,893 1,006 66 18,965
3. REVENUE
Six months to 31 Jul 2024 Six months to 31 Jul 2023 Twelve months to 31 Jan 2024
£'000 £'000 £'000
United Kingdom 29,375 25,476 52,561
Europe 383 371 676
Rest of the World 167 200 581
29,925 26,047 53,818
4. EXCEPTIONAL COSTS
Six months to 31 Jul 2024 Six months to 31 Jul 2023 Twelve months to 31 Jan 2024
£'000 £'000 £'000
Restructuring costs 400 - 1,449
Rectification costs - - 145
400 - 1,594
Exceptional costs are those of significant size and of a non-recurring nature
that require disclosure in order that the underlying business performance can
be identified. The exceptional costs in these financial statements include
restructuring costs in respect of salary and redundancy costs following the
headcount reduction exercise undertaken by the Group, which included the
breakup and cessation of the low-carbon solutions delivery team for private,
domestic customers. The rectification costs were incurred by the business,
outside the normal course of operations, on one contract, where certain key
components failed to perform to specified manufacturers' standards.
5. OPERATING LOSS
Operating loss from continued operations is stated after charging:
Six months to 31 Jul 2024
£'000 Twelve months to 31 Jan 2024
£'000
Six months to 31 Jul 2023
£'000
Depreciation of property, plant and equipment 515 297 824
Depreciation of right-of-use assets 229 333 412
Amortisation of intangible assets 459 204 788
Share based payments 198 58 279
6. EARNINGS PER SHARE*
The calculation of the basic and diluted earnings per share is calculated by
dividing the profit or loss for the year by the weighted average number of
ordinary shares in issue during the period.
Six months to 31 Jul 2024 Six months to 31 Jul 2023 Twelve months to 31 Jan 2024
Profit/(Loss) for the period from continuing operations - £'000 (3,291) 99 (6,339)
Weighted number of ordinary shares in issue 33,222,130 33,388,788 33,388,788
Weighted number of fully diluted ordinary shares in issue 34,303,398 33,554,803 33,985,502
Basic earnings per share from continuing operations - pence (9.91) 0.47 (18.98)
Diluted earnings per share from continuing operations - pence (9.91) 0.47 (18.98)
* Adjusted diluted EPS in the period was (7.85p), Jan 24 (18.98), Jul 23 0.47
- this is a non IFRS measure
7. TRADE AND OTHER RECEIVABLES
31 Jul 2024
£'000
31 Jul 2023 31 Jan 2024
£'000
£'000
Trade receivables 4,238 4,895 4,491
Other debtors 1,994 2,671 2,039
Prepayments and accrued income 8,144 16,140 14,996
14,376 23,706 21,526
Notes to the financial information (continued)
8. BORROWINGS
31 Jul 2024 31 Jul 2023 31 Jan 2024
£'000
£'000
£'000
Current 2,046 1,457 1,913
Non-current 2,371 4,023 3,288
4,417 5,480 5,201
Analysis of maturity of loans is given below:
31 Jul 2024
£'000
31 Jul 2023 31 Jan 2024
£'000
£'000
Amounts falling due within one year
Other loans 2,046 1,457 1,913
Amounts falling due 1-2 years
Other loans 1,776 1,821 2,348
Amounts falling due 2-5 years
Other loans 595 2,202 940
4,417 5,480 5,201
Other loans relate to a £6,000,000 facility provided by HSBC to Cenergist
Limited and a €1,500,000 facility provided to Cenergist Spain SL by
Instituto De Finanzas De Castilla-La Mancha S.A.U. ("CLM") and a €500,000
facility provided to Cenergist Spain SL by BankInter SA ("Bank Inter") and are
secured by fixed and floating charges over the assets of the Company and by
cross guarantees from the Company's subsidiary undertakings.
Interest on the HSBC facility is at a rate of 3.45% over the Bank of England
Base Rate with the repayment period being 48 months from date of individual
tranche drawdown.
Interest on the CLM facility is at a rate of 3.50% with the repayment period
being 84 months from date of individual tranche drawdown.
Interest on the Bank Inter facility is at a rate of 8.77% with the repayment
period being 18 months from date of individual tranche drawdown.
Notes to the financial information (continued)
9. RECONCILIATION OF MOVEMENT IN NET DEBT
At 1 February 2023 Non-cash changes Cashflow At 31 July 2023
£'000 £'000 £'000 £'000
Cash at bank 3,224 - 2,739 5,963
Borrowings - current (2,793) - 1,336 (1,457)
Borrowings - non-current (3,408) - (615) (4,023)
Lease liability - current & non - current (1,726) 31 (175) (1,870)
Net (Debt) / Cash (4,703) 31 3,285 (1,387)
Adjusted Net (Debt)/Cash(2) (2,977) - 3,460 483
At 1 August 2023 Non-cash changes Cashflow At 31 January 2024
£'000 £'000 £'000 £'000
Cash at bank 5,963 - 401 6,364
Borrowings - current (1,457) - (456) (1,913)
Borrowings - non-current (4,023) - 736 (3,287)
Lease liability - current & non - current (1,870) 714 (341) (1,497)
Net (Debt) / Cash (1,387) 714 340 (333)
Adjusted Net Cash(2) 483 - 681 1,164
At 1 February 2024 Non-cash changes Cashflow At 31 July 2024
£'000 £'000 £'000 £'000
Cash at bank 6,364 - (1,692) 4,672
Borrowings - current (1,913) (133) - (2,046)
Borrowings - non-current (3,287) - 916 (2,371)
Lease liabilities - current & non-current (1,497) 471 (246) (1,272)
Net (Debt) / Cash (333) 338 (1,022) (1,017)
Adjusted Net Cash / (Debt)(2) 1,164 (133) (776) 255
(2)Adjusted Net Cash / (Debt) is considered to be a Key Performance Indicator
and consistent with how the Group measures net cash / debt. It is calculated
as cash at bank less borrowings. Note this is an Alternative Performance
Measure and is a non-IFRS measure.
Notes to the financial information (continued)
10. EVENTS SUBSEQUENT TO PERIOD END
The Group has not identified any subsequent event to be reported.
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