REG - EnergyPathways PLC - Results for the half year ended 30 June 2025
26/09/2025 07:00
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RNS Number : 8931A EnergyPathways PLC 26 September 2025
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 (MAR). Upon the publication of this announcement via
Regulatory Information Service (RIS), this inside information is now
considered to be in the public domain.
26 September 2025
EnergyPathways plc
("EnergyPathways" or the "Company")
Results for the half year ended 30 June 2025
EnergyPathways (AIM: EPP), an integrated energy transition company, is pleased
to announce its unaudited results for the six months ended 30 June 2025.
Period Highlights:
· Marram Energy Storage Hub ("MESH") development design selected
following pre-FEED activities in conjunction with strategic partners
· Progress on MESH hybrid compressed-air energy storage project
· Zenith Energy Ltd. ("Zenith") engaged as the well engineering
department for EnergyPathways
· Preparation for application to the Marine Management Organisation
("MMO") for compressed air storage licence
· Subscription by existing shareholders and Directors raising £743,692
· Loss for the period £607,201 (30 June 2024: loss £550,159; 31
December 2024: loss £1,203,671). Cash at year end of £695,335 (31 December
2024: £857,650)
Post period-end:
· MOU for strategic engagement with Hazer Group Ltd ("Hazer") for use
of proprietary hydrogen production technology licensed with KBR Inc ("KBR").
· Siemens Energy Limited ("Siemens") engaged to carry out feasibility
assessment of MESH
· Costain Group PLC ("Costain") engaged to assess onshore facility
options for the MESH integrated energy system
· Application submitted for direction under Section 35 Planning Act
2008
· Requirement to submit new gas storage licence application
· Placing and subscription with warrants to raise £400,000
Ben Clube, EnergyPathways' CEO, commented:
"We have made strong operational progress on MESH in the year to date, having
signed strategic agreements with a number of world class contractors to
support EnergyPathways through the FEED phase and move the project towards FID
status. We continue to maintain good dialogue with the various silos that
comprise the relevant authorities overlooking our planning and licensing and
we remain optimistic that we will obtain the requisite approvals to move MESH
to the next phase in due course. Our optimism is underpinned by an
unwavering belief that the socioeconomic and environmental benefits of MESH
are too valuable for the UK to be overlooked."
For further information on the Company please visit the Company's website:
https://energypathways.uk (https://energypathways.uk)
Engage with us by asking questions, watching video summaries and seeing what
other shareholders have to say. Navigate to our Interactive Investor website
here:
https://energypathways.uk/link/yOOvvy (https://energypathways.uk/link/yOOvvy)
.
Contact:
EnergyPathways Tel: +44 (0)20 7466 5000, c/o Burson Buchanan (Financial PR)
Ben Clube / Max Williams
Email : info@energypathways.uk
Cairn Financial Advisers LLP (Nominated Adviser) Tel: +44 (0)20 7213 0880
Jo Turner / Louise O'Driscoll / Sandy Jamieson
SP Angel Corporate Finance LLP (Joint Broker) Tel: +44 (0)20 3470 0470
Richard Hail / Adam Cowl
Global Investment Strategy UK Limited (Joint Broker) Tel: +44 (0)20 7048 9000
Callum Hill / James Sheehan
Burson Buchanan (Financial PR) Tel: +44 (0)20 7466 5000
Ben Romney / Barry Archer
Email: energy@buchanan.uk.com (mailto:energy@buchanan.uk.com)
About EnergyPathways
Energy Pathways is developing the Marram Energy Storage Hub, or MESH, in the
UK Irish Sea. MESH is designed to be a decarbonised, fully electrified storage
facility that can supply natural gas and green hydrogen to the UK market, at
scale. The Company is developing the MESH project so that it is wholly in line
with the UK government's energy policy and ambitions, to deliver both Energy
Security and Net Zero.
Chairman's Statement
I am pleased to provide the following statement to frame strategic progress
through the first half of the financial year and outline EnergyPathways'
priorities and areas of focus for the remainder of the year. It has indeed
been a very eventful period, both in terms of activities at the Company as
well as wider macro events which, in our view, only serve to enhance the
relevance and necessity for MESH.
A new 'new' world
The world is undoubtedly going through another shift in the global rhetoric
regarding energy industries and this is again causing the sands to shift in
terms of global policies around energy transition and security. The impact
of this shift in tone regarding the pace and structure of what a responsible
energy transition should look like - and how it can delivered logistically and
financially - has resulted in a change of strategy by the Majors who are key
players in plugging the investment and skills gaps to deliver the ambitious
global decarbonisation targets.
With Majors scaling back their renewables ambitions and capital becoming
harder to access for "renewables investments" as a result of this shift in
sentiment and higher interest rate backdrop, we believe the growing pragmatism
around decarbonisation requiring an integrated approach rather an "either/or
scenario" only serves to underscore the purpose of EnergyPathways.
Furthermore, with an ongoing cost of living crisis in the UK - further
aggravated by high energy costs - there is a clear requirement for
commercially viable integrated energy storage projects like MESH that can make
a major contribution to accelerating the UK energy transition and meeting the
Government's 2030 clean energy targets without loading extra costs on to UK
consumers.
Aligning with world class partners
In that context, the period has seen EnergyPathways materially advancing the
design and planning aspects of its MESH project through the engineering,
construction, commissioning and management phases by expanding its
collaborative network with industry leading partners. Building on the
critical appointment in December of Wood PLC as lead engineering partner for
MESH, we announced the appointment in January of PDi Ltd to provide
engineering study support for the tie in of the MESH project to the Marram
Field. Additionally, in June we engaged with Zenith, one of the UK's largest
privately owned independent well engineering and project management companies,
as a contractor to support the MESH project. This was further complemented
post-period in July by partnering with Costain, Siemens and Hazer. The
calibre of the firms that comprise the MESH partnership cannot be overstated
and their strategic engagement with EnergyPathways should be viewed by all
stakeholders as a major validation of the quality of our internal and
contractor capabilities - as well as endorsement around the technical and
commercial viability of the MESH project as a whole.
In particular, the strategic engagement with Hazer to use its proprietary
hydrogen production technology - globally licensed through Hazer's strategic
alliance with KBR, provides an insight into the integrated and multi-benefit
nature of MESH as we seek to use this technology to develop a bolt-on clean
hydrogen facility that will expand the Company's MESH integrated energy
storage project to deliver what we think will be the lowest-cost clean
hydrogen production in the UK, as well as the technology to capture carbon as
synthetic anode-quality graphite.
MESH is a project of national significance
What has become even more apparent through the period is the fact that the UK
absolutely requires MESH for the multitude of social, environmental and
commercial reasons that we continue to promote to all stakeholders. As
previously announced, post period in August, EnergyPathways received
correspondence from The North Sea Transition Authority ("NSTA") in respect of
its Gas Storage Licence application. The Company continues to engage with
the NSTA and is reviewing a number of options for taking these forward, which
includes amending and resubmitting its Gas Storage Licence application.
We remain optimistic that MESH will obtain the natural gas and hydrogen
storage licences in due course and our optimism is underpinned by continued
supportive engagement with the various authorities at NSTA and the Department
for Energy and Net Zero ("DESNZ"). To support our view of MESH being an
infrastructure project of national significance and streamline the planning
and consent processes, EnergyPathways made the request for a section 35
direction, which is a process in which an infrastructure developer seeks
approval from the Secretary of State for its project to be treated as a
project requiring consent through a Development Consent Order (DCO) process
under the Planning Act 2008.
Requesting a section 35 direction is a key step in EnergyPathways' process to
obtain appropriate consents and recognition from the UK Government of the
potential of its integrated MESH energy storage and decarbonisation project to
be a project of national significance. The Company expects to learn the
outcome of this application in the near term and will update the market
accordingly.
Continued focus on Capital Discipline and Shareholder Alignment
With the acceleration of partner engagement through the period, EnergyPathways
strengthened its balance sheet in April through a subscription by existing
shareholders and Directors raising £743,692. Post period end, in August we
undertook a further placing with an institutional investors and a subscription
to raise a total of £400,000. The Directors again demonstrated their
confidence in the investment proposition and alignment with wider shareholders
through participation in both fundraises. The proceeds provided working
capital to progress pre-development activities on MESH. The Company
continues to prioritise capital discipline and maintains a lean model to
preserve cash.
During the period, EnergyPathways saw some changes to the Board, with Ben
Hodges and Stephen West both stepping down to pursue other business interests,
and Max Williams appointed to the Board as Finance Director and Company
Secretary. EnergyPathways is fortunate to have a board with the right mix of
skills and experience to deliver on its strategy - and our collective
"skin-in-the-game" ensures we are fully focused and incentivised to deliver
long-term value creation for our shareholders.
In summary, it has been a very eventful period through which we remained fully
focused on delivering MESH, with a strong belief that the change in backdrop
to Energy Transition only amplifies the necessity of our project for the
benefit of the UK and its people. We have delivered significant operational
progress in collaboration with our world class partners and have taken
meaningful strides towards Final Investment Decision ("FID"). The focus for
the remainder of the year will be to continue progressing the pre-FEED
elements of MESH and build on our constructive engagement with the relevant
authorities to obtain the outstanding approvals to move MESH into the next
phase.
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Unaudited Unaudited Audited
6 Month Period Ended 30 June 6 Months Period Ended 30 June 12 Month Period Ended 31 December 2024
2025 2024
Note £ £ £
Administrative expenses (572,490) (508,421) (1,072,289)
Pre-acquisition license expenses (29,315) (40,530) (123,562)
Operating Loss (601,805) (548,951) (1,195,851)
Net finance costs (5,396) (1,208) (860)
Listing costs - - (6,960)
Loss before tax (607,201) (550,159) (1,203,671)
Taxation - - -
Loss for the period (607,201) (550,159) (1,203,671)
Other comprehensive income:
Items that will or may be reclassified to profit or loss:
Other comprehensive income - - -
Total comprehensive loss (607,201) (550,159) (1,203,671)
Basic and Diluted Loss per share (pence) 3 (0.35) (0.35) (0.75)
All operations are continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2025 2024 2024
Note £ £ £
Non-current assets
Intangible assets 4 2,168,906 1,025,256 1,397,020
Property, plant and equipment 6,554 9,967 8,251
2,175,460 1,035,223 1,405,271
Current assets
Trade and other receivables 5 150,883 84,995 106,909
Cash and cash equivalents 695,335 1,173,492 857,650
846,218 1,258,487 964,559
Total assets 3,021,678 2,293,710 2,369,830
Current liabilities
Trade and other payables 5 (1,345,939) (794,289) (1,103,321)
Borrowings 7 (105,514) - -
Total liabilities (1,451,453) (794,289) (1,103,321)
Net assets 1,570,225 1,499,421 1,266,509
Equity
Ordinary share capital 8 1,860,286 1,591,211 1,684,954
Share premium 8 5,525,849 4,481,407 4,772,264
Share based payments reserve 270,000 318,000 288,000
Retained earnings (6,085,910) (4,891,197) (5,478,709)
Total equity 1,570,225 1,499,421 1,266,509
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Ordinary Share capital Share premium Share based payments reserve Retained earnings Total
Note £ £ £ £ £
Balance as at 1 January 2024 (Audited) 1,579,166 4,451,952 176,000 (4,341,038) 1,866,080
Loss for the period and total comprehensive income - - - (550,159) (550,159)
Issue of shares for services 8 12,045 29,455 - - 41,500
Issue of options - - 142,000 - 142,000
Balance as at 30 June 2024 (Unaudited) 1,591,211 4,481,407 318,000 (4,891,197) 1,499,421
Loss for the period and total comprehensive income - - - (653,512) (653,512)
Issue of shares for services 8 16,343 16,657 - 33,000
Issue of shares - exercise of warrants 8 77,400 274,200 - - 351,600
Issue of options - - 36,000 - 36,000
Transfer between reserves (66,000) 66,000 -
Balance as at 31 December 2024 (Audited) 1,684,954 4,772,264 288,000 (5,478,709) 1,266,509
Loss for the period and total comprehensive income - - - (607,201) (607,201)
Issue of shares for services 8 26,617 118,651 - - 145,268
Issue of shares - placing and subscription 134,240 609,452 - - 743,692
Issue of shares - exercise of warrants 5,000 20,000 - - 25,000
Issue of shares - exercise of options 9,475 28,425 - - 37,900
Share issue costs - (40,943) - - (40,943)
Released on exercise of options - 18,000 (18,000) - -
Balance as at 30 June 2025 (Unaudited) 1,860,286 5,525,849 270,000 (6,085,910) 1,570,225
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Unaudited Unaudited Audited
6 months to 30 June 6 months to 30 June 12 months to 31 December 2024
2025 2024
Note £ £ £
Cash flows from operating activities
Loss before tax for the year (607,201) (550,159) (1,203,671)
Adjustments for:
Depreciation 1,697 347 2,062
Share based payments - 142,000 178,000
Compensation settled in shares 29,726 25,000 25,000
Interest income (117) (17) (365)
Interest expense 5,514 1,225 1,225
(570,381) (381,604) (997,749)
Changes in non-cash working capital accounts
(Increase) / decrease in trade and other receivables 5 (39,661) 536,168 514,152
Increase / (decrease) in trade and other payables 6 184,405 (411,238) (136,135)
Cash used in / (generated by) operating activities (425,637) (256,674) (619,732)
Income taxes paid - - -
Net cash flows from operating activities (425,637) (256,674) (619,732)
Investing activities
Purchases of exploration and evaluation assets 4 (602,444) (261,086) (571,348)
Purchase of property, plant and equipment - (10,313) (10,313)
Interest income 117 17 365
Net cash used in investing activities (602,327) (271,382) (581,296)
Financing activities
Proceeds from issue of ordinary share capital 8 806,592 1,208,115 1,565,245
Share issue costs 8 (40,943) - -
Interest paid - (1,225) (1,225)
Proceeds from loans and borrowings 7 100,000 - -
Net cash provided by financing activities 865,649 1,206,890 1,564,020
Net (decrease)/increase in cash and cash equivalents (162,315) 678,834 362,992
Cash and cash equivalents at beginning of period 857,650 494,658 494,658
Cash and cash equivalents and end of period 695,335 1,173,492 857,650
NOTES TO THE FINANCIAL STATEMENTS
1. General Information
EnergyPathways plc (the "Company" or "EnergyPathways") is a company
incorporated in England and Wales under the Companies Act 2006 with the
registered number 13201653. The Company's registered office is Highdown House,
Yeoman Way, Worthing, West Sussex, BN99 3HH.
The principal activity of the Company is delivering clean, home-grown energy
for the UK.
2. Summary of significant accounting policies
The principal accounting principles applied in the preparation of these
unaudited interim financial statements are set out below. These principles
have been consistently applied to all periods presented, unless otherwise
stated.
2.1. Basis of preparation
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared on
a going concern basis in accordance with UK-adopted international accounting
standards. Statutory financial statements for the year ended 31 December 2024
were approved by the Board of Directors on 27 June 2025 and delivered to the
Registrar of Companies. The report of the auditors on those financial
statements was unqualified.
The interim financial information for the six months ended 30 June 2025 has
not been reviewed or audited. The interim financial report was approved by the
Board on 25 September 2025.
2.2. Going concern
In order to assess the appropriateness of the going concern basis in preparing
the financial statements for the six months ended 30 June 2025, the Directors
have considered a time period of at least twelve months from the date of
approval of these financial statements.
The Group is currently not revenue-generating and incurred an operating loss
during the six months ended 30 June 2025. At the balance sheet date, the
Group had cash and cash equivalents amounting to £700,000 and raised a
further £400,000 in August 2025. The future of the Company is dependent on
the development of the MESH project to deliver Energy Security and Net Zero in
line with the UK Government's energy policy. The Directors believe that the
Group's cash flow can be assisted by raising additional capital, the deferral
of planned expenditure and other cost saving actions, loan facilities for
revenue-generating operations or from future revenues. The Directors have
taken into consideration of the Company's ongoing discussions with a clean
energy fund to support development on the grant of licence and the successful
completion of fundraises since IPO, including fundraises completed in April
and August 2025, to provide additional cash resources.
The Directors concluded that the Group will have sufficient resources to
continue as a going concern for the future, that is for a period of not less
than 12 months from the date of approval of the consolidated financial
statements.
However, there exists a material uncertainty that may cast significant doubt
over the ability of the Group to continue as a going concern. The Group's
licence and other applications made to the UK Government may be unsuccessful
and therefore the Company may be unable to realise its assets and discharge
its liabilities in the normal course of business if it is unable to raise
funds for further development of the MESH project. The condensed consolidated
statements have been prepared on a going concern basis and do not include any
adjustments that would be necessary if this basis were inappropriate.
2.3. Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Company's 2024 Annual Report and Financial Statements, a copy
of which is available on the Company's website: https://energypathways.uk
(https://energypathways.uk) . The key financial risks are securing finance for
the Marram gas project and an emerging cost inflation risk.
2.4. Critical accounting estimates
The preparation of interim financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the end of the reporting period. Significant items subject to
such estimates are set out in note 3 of the Company's 2024 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 31 December 2024, as described in
those annual financial statements.
3. Earnings per share
The calculation of the basic and diluted earnings per share is calculated by
dividing the loss for the period for continuing operations for the
EnergyPathways Group by the weighted average number of ordinary shares in
issue during period year.
The basic and weighted average number of ordinary shares used in the
calculation of basic earnings per share are as follows:
Unaudited Unaudited Audited
6 months to 30 June 2025 6 months to 30 June 2024 12 months to 31 December 2024
£ £ £
Loss for the purposes of basic earnings per share being net loss attributable (607,201) (550,159) (1,203,671)
to the owners
Weighted average number of ordinary shares 171,828,972 158,508,817 160,198,727
Loss per share (pence) (0.35) (0.35) (0.75)
There is no difference between the basic and diluted earnings per share as
there were no securities in issue as at 30 June 2025 that would have a
dilutive effect on earnings per share.
4. Intangible assets
Gas development assets
£
Cost
As at 1 January 2024 (Audited) 729,931
Additions 295,325
As at 30 June 2024 (Unaudited) 1,025,256
Additions 371,764
As at 31 December 2024 (Audited) 1,397,020
Additions 771,886
As at 30 June 2025 (Unaudited) 2,168,906
5. Trade and other receivables
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£ £ £
Other receivables 44,000 5,530 -
Prepayments 33,694 37,609 33,317
VAT receivable 73,189 41,856 73,592
150,883 84,995 106,909
6. Trade and other payables - due within one year
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2025 2024 2024
£ £ £
Trade payables 213,385 185,074 188,102
Accruals 1,132,554 609,215 915,219
1,345,939 794,289 1,103,321
7. Borrowings
£
As at 31 December 2024 (Audited) -
Drawdowns 100,000
Interest accrued 5,514
As at 30 June 2025 (Unaudited) 105,514
In October 2023, the Company entered into a loan facility of up to £5.1
million with Global Green Asset Financing Limited ("GGAF") with interest to be
charged at a fixed rate of 12.5% per annum. On 20 January 2025, an amount of
£100,000 was drawn down against facility. Interest amounting to £5,514 has
accrued for the period ended 30 June 2025.
8. Ordinary share capital and share premium
Issued Number of shares Ordinary share capital Share
£ premium
£
As at 31 December 2023 (Audited) 157,916,559 1,579,166 4,451,952
Issue of shares for services 1,204,486 12,045 29,455
As at 30 June 2024 (Unaudited) 159,121,045 1,591,211 4,481,407
Issue of shares for services 1,634,300 16,343 16,657
Issue of shares - warrants 7,740,000 77,400 274,200
As at 31 December 2024 (Audited) 168,495,345 1,684,954 4,772,264
Issue of shares 13,424,040 134,240 609,452
Issue of shares for services 2,661,759 26,617 118,651
Issue of shares - warrants 500,000 5,000 20,000
Issue of shares - options 947,500 9,475 28,425
Release of provision on exercise of options - - 18,000
Share issue costs - - (40,943)
As at 30 June 2024 (Unaudited) 186,028,644 1,860,286 5,525,849
Cash amounting to £1,208,115 received during the six months to 30 June 2024
represented the net proceeds remitted from brokers in January 2024 for the
issue of shares pursuant to the share placement completed in December 2023.
During the period to 30 June 2025 the Company issued:
• 13,424,040 at a price of 5.54 pence each under placing
and subscription agreements.
• a total of 2,661,759 ordinary shares at an average
price of 5.46 pence each to consultants, advisors and a former director in
lieu of cash for services rendered.
• 500,000 ordinary shares on the exercise of warrants
with an exercise price of 5 pence each.
• 947,500 ordinary shares on the exercise of options
with an exercise price of 4 pence each.
During the period to 30 June 2024 the Company issued:
• a total of 1,204,486 ordinary shares at an average
price of 3.45 pence each to consultants and advisors in lieu of cash for
services rendered.
During the six months ended 31 December 2024 the Company issued:
• a total of 1,634,300 ordinary shares at an average
price of 2.02 pence each to consultants in lieu of cash for services rendered.
• 7,740,000 ordinary shares on the exercise of warrants
with exercise prices of 4 and 5 pence each.
The ordinary shares confer the right to vote at general meetings of the
Company, to a repayment of capital in the event of liquidation or winding up
and certain other rights as set out in the Company's articles of association.
9. Events after the reporting period
On 29 July 2025, the Company issued 9,411,762 ordinary shares at 4.25 pence
per share to raise gross proceeds of £400,000. Of the funds raised, shares
with a value of £310,000 were issued under a placing agreement and shares
with a value of £90,000 were issued under subscription agreements with
certain Directors and management of the Company.
On 4 August 2025 the Company issued 866,083 ordinary shares at 5.55 pence
each, amounting to £48,061.60, in settlement of consultancy fees in lieu of
cash to members of the Marram Project management team. The Company also
issued 1,628,945 ordinary shares at 3.15 pence each, amounting to £51,310.75
to a former director in respect of salary owed in accordance with the
agreement at the time of IPO.
There were other no significant post balance sheet events which would require
amendment to or disclosure in the half yearly financial statements.
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