Equipmake Holdings - Interim Results
18/01/2024 07:00
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RNS Number : 0739A Equipmake Holdings PLC 18 January 2024
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").
18 January 2024
EQUIPMAKE HOLDINGS PLC
("Equipmake" or the "Company")
RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2023
Equipmake, the UK-based engineering specialist pioneering the development and
production of electrification products across the automotive, aerospace, bus,
coach and off-highway industries, is pleased to announce its unaudited results
for the six-month period ended 30 November 2023 ("H1 FY24") and a trading
update for the financial year ending May 2024 ("FY24").
Financial Highlights
* H1 FY24 revenue (including grants) of £2.07m represents a 97% year-on-year
increase (H1 FY23: £1.05m).
* Improvement in gross margins for repowered vehicles reported in Powertrain
(inc. integration) (H1 FY24: 9.2%, full year FY23: -12.9% gross loss),
reflects initial progress on the cost reduction initiatives that are expected
to deliver further significant margin improvements in the near term.
* Operating losses of £2.97m, (H1 FY23: loss of £2.08m before exceptional
items). The increase in administrative costs are aligned with the
Company’s financial plan and reflect the expansion of the business since the
IPO in July 2022.
* Contracted order book(1) of £11.17m as of 17 January 2024.
* Investment in tangible fixed assets and product development of £1.33m.
* Cash as of 30 November 23 was £3.91m (30 November 22: £7.44m).
Operational Highlights
* Delivered seven repowered buses to First Group, increasing the in-service
fleet to 12 vehicles, meeting all operational KPIs.
* Secured new bus re-powering orders totalling £3.23m from Newport Transport
and Big Bus Tours.
* Commenced production-intent motor/inverter development project with Perkins
Engines Company Ltd (“Perkins”) (a wholly owned subsidiary of Caterpillar
Inc., a global OEM leader in the off-road market), securing up to £3.24m of
associated government grant funding through the Advanced Propulsion Centre UK
(“APC”) over the three-and-a-half-year life of the project.
* Secured an order from a global specialist vehicle OEM for £0.56m to integrate
the Company’s powertrain into an airside operational vehicle.
* Additional facility of 50,000 sq. ft fully operational, including relocation
of vehicle repowering team.
Trading update
Since the end of H1 FY24, Equipmake has:
* Secured a second order from Big Bus Tours for a further 10 buses, totalling
£1.75m.
* Secured a new order for £0.72m for a production-intent development project
with H55, further supporting aerospace sector growth.
* Secured a second order from a global specialist vehicle OEM for £0.4M to
provide 2 EV powertrains for airside operational vehicles.
* Strengthened the Executive team and Board with the appointment of Dr Nick
Moelders as COO.
* Increased the pipeline of opportunities to enter US electric vehicle
(“EV”) markets, through a partnership models.
Whilst our order pipeline remains strong and our cost reduction initiatives
remain on target to deliver the anticipated gross margin improvements, there
have been some delays in implementation due to operational and supply chain
challenges. As a result, the Company has taken a prudent approach to its
production ramp up and anticipates revenue for the full financial year being
below market expectations, however strong cost control measures mean that
operating losses are expected to be broadly in line with market expectations.
(1) The contracted orderbook is orders that have been contracted but where
revenue hasn't been recognised.
Commenting of the results and trading update Ian Foley, CEO of Equipmake said:
"I am pleased to share an update on our progress on delivering our ambitious
strategy, as laid out originally at the time of our initial public offering in
July 2022. We continue to see excellent demand for the leading-edge electric
vehicle ("EV) products and integrated solutions that we can supply. Our
half-year results demonstrate strong progress on our journey to building
revenue and operational profitability with revenue in this half year of
£2.1m, being 97% ahead of the equivalent period in FY23. We are increasing
gross margins on repowering vehicles, whilst also investing in an additional
facility and adding to our operations and sales teams. We are anticipating
strong revenue growth in FY24 vs FY23, however we are anticipating this being
lower than our previous revenue expectations for the full year.
"As we have built our business over this interim period, we have been judicial
in our approach to new opportunities, ensuring that we prioritise those
directly in our target sectors (both end market and geography) and those that
are most complementary in the nearer term with our existing product offering.
Additionally, we have taken a view on opportunities that could build
short-term revenue but would at this time not deliver the margins we require,
ahead of our cost reduction initiatives being materially delivered by the end
of FY24."
CEO Statement
A key tenet of our value proposition has always been our state-of-the-art
products, developed from 20 years of experience, that work seamlessly as an
integrated EV solution for our customers. This provides a strong competitive
positioning for those very substantial markets where customers have specific
needs to repower from ICE, or to develop new product, that requires proven,
expertly engineered EV product in what remains an emerging field of
technology. In this interim period, we have not only secured substantial new
orders from new customers, but also extended our capacity and in-house
capabilities through targeted investment and driven hard on productionising to
realise unit cost reductions that are already beginning to have an impact.
Strengthening the Leadership Team
I was delighted earlier this month to announce the appointment of Dr Nick
Moelders to the Board as COO, replacing James Bishop. Nick brings a wealth of
proven delivery capability in our sector, as well as significant knowledge and
network in the US market.
In his most recent role, Nick led the development and scaling to production of
the electrification division of Sensata, a $5bn market cap Tier 1 and 2 sensor
business. This is the latest step of an ongoing process by the Board to ensure
the Company has the scope and scale of leadership talent to deliver its
strategy.
Equipmake Strategy
We firmly believe that the world is on an irreversible path to far greater
electrification, and the transport sector is front and centre of that. The
internal combustion engine has dominated this sector for over 100 years, from
micro-mobility to passenger cars, mass transit and industrial vehicles. All
these applications are, and will continue, transitioning to electrification.
Opportunities abound for those companies that offer proven, high quality EV
products and systems that are fit for purpose. The overall transport market
for electrification is enormous, and the sub-sectors of that, including mass
transit (bus & coach), industrial (generally off-road) and aerospace each
represent very significant market segments, in their own rights. Even when
further segmented into new vehicles and solutions to repower existing vehicles
- necessary in many sectors to meet new emission targets in time - the
addressable markets remain enormous. These markets are our North Star, and we
think carefully about how we will be successful in our chosen ones, using
common core products and Zero Emission Drivetrain solutions from our
established portfolio.
The adoption of many new technologies follows a well-researched "S curve",
with 3 phases: early adoption then rapid acceleration, followed by maturity.
These periods of new technology adoption often result in existential crises
for incumbents and create opportunities for new entrants who can think
differently, and deliver real product, when it is needed. One particular
feature of large incumbents, and why they often struggle, is their need to
operate out-dated facilities and supply chain models which attempt to
compromise customers' needs into existing business models and product
solutions. This is the advantage that new entrants, particularly those with
vertically integrated product solutions like ours that are designed to meet
today's customers' needs, bring to the competitive landscape. The strong value
proposition of the integrated solutions approach we have is substantial and
worthy of highlight. We design, engineer and manufacture our own motors,
inverters, control units and other key components in house, providing us not
only with huge flexibility to meet our customers' requirements, but also
strong cost competitive advantage. Many of our competitors purchase these
components externally at retail prices and consolidate them into their
"solutions". The economics of these operating models are materially different,
providing a distinct cost and flexibility advantage to Equipmake, something we
increasingly see in our conversations with customers.
Our long-established presence in the EV sector, delivering products for many
years into different end markets has prepared us well for scaling our
activities, as the adoption cycle moved from early adoption into rapid
acceleration. We are addressing the challenges of driving costs from our
products as volume has increased and have also proven our ability to
consistently deliver high quality, customer-ready products that literally hit
the ground running. Our market-leading uptime within the buses we have
repowered to date is a strong testament to this, as are the repeat orders we
are seeing across our customer base. Building the business does take time, and
creating the customer relationships and driving product costs down also
consumes time and other resources on the path to true scaling.
We are seeing our strategy play out as anticipated, although taking a little
longer in this phase than we had originally planned, as we became more
selective in the opportunities we pursue whilst we ensured our product costs
and manufacturing capabilities were ready for the next phase. We have
successfully built relations (and taken initial orders) with several global
customers and, whilst this has taken some time, the future business potential
from these customers is very significant.
Vehicle Repowering and Original Equipment supply - Equipmake positioning
Repowering is the process of converting an existing vehicle (usually powered
via an ICE) to a Zero Emission Drivetrain powered vehicle. Original Equipment
("OE") supply is the supply of EV components or wider systems to customers
that manufacture new vehicles.
Equipmake is addressing both these market opportunities in particular sectors,
within repowering most notably bus, coach and industrial vehicles, with OE
adding aerospace as a further market.
Repowering enables us to address substantial markets that exist today and that
we believe will continue to grow for many years. It provides the opportunity
to prove our products in multiple real-world uses, build our knowledge,
customer base and reputation. Examples are our repowering with First Group (13
vehicles), Big Bus Tours (now 20), and Newport Transport (8).
Simultaneously, we are building our capability and product offering to scale
into the OE market. Our recent announcement with Perkins, where we are now
developing motor and inverter products for potential future OE application, is
a recent example. Perkins is a wholly owned subsidiary of Caterpillar, the
world's largest off-road vehicle manufacturer. Perkins specialise in the
supply of diesel engines for niche off road applications, manufacturing
200,000 units per annum at their Peterborough factory. Under the terms of
our contract, Equipmake will design and manufacture bespoke motors and
inverters for a "drop in" replacement for a diesel engine. Under this project
Equipmake will develop a bespoke motor / inverter which will be integrated by
Perkins into a hybrid system. The project is part funded with a grant to
Equipmake of up to £3.2m from the Advanced Propulsion Centre. The target is
to begin production in 2028.
Prior to awarding this project, Caterpillar undertook 12 months' due diligence
comparing Equipmake technology and production readiness with competitors.
A further example of our expanding product offering is our presence in the EV
Fire Truck market, where we supply Emergency One, the largest Fire Truck
manufacturer in the UK (80% UK market share). Through this relationship we
have delivered a complete drivetrain for REV Group, the second largest
manufacturer of Fire Trucks in the US. Emergency One are marketing their
product, with the Equipmake powertrain, globally, with the first European
order taken. REV Group have begun production delivery in North America with
further orders being taken. A final example is our work with a Global ground
support equipment company to supply a full electric drivetrain for a special
vehicle application. Equipmake's vertical integration capability was key with
the ability to deliver the project within 6 months.
Other commercial initiatives
Our project to develop an aerospace certified electric motor to integrate with
a full electric powertrain being developed by H55 continues on target. We
recently won the next stage of this contract for £0.7m for the development of
the production version.
In May we announced entering into a licence agreement with Sona Comstar in
India. Sona is a leading manufacturer of low voltage automotive motors,
selling over two million units per annum, including to customers outside India
such as General Motors and Ford. Sona has licenced certain motors and
inverters from Equipmake to support their entry into the high voltage traction
market in India. Their initial focus is buses, and the parties are working to
accelerate the start of production, which is currently targeted by the end of
the 2025 calendar year.
Opportunities in the USA
Following approaches from potential partners we have recently begun a review
of the growing opportunity to supply our products in the USA, initially
focussed on repowering of existing ICE buses. The opportunity is significant,
with appealing economics and substantial volume of existing vehicles that
would be suitable for repower. There are over 80,000 transit buses in the USA,
and almost 500,000 school buses.
Our intention is to leverage our existing IP through high quality partnerships
to address different sectors and territories. However, if the review deems an
alternative approach is more appropriate, then we will modify our strategy
accordingly. We have identified a number of such partners and evaluation is
underway, to build suitable business and supply chain models that optimise our
economics and manage any execution risks.
In summary, we have successfully completed the delivery of vehicles into
service, the orderbook is building, and interest in repowering is increasing.
We remain confident in achieving our margin targets. We have signed 2 major
Global OEMs as customers and we are seeing increasing interest in our value
proposition.
CFO Statement
The financial performance for H1 of FY24 shows year-on-year revenue growth
(including grants) of 96.5%, including the delivery of 7 repowered buses into
service for First York, taking the in-service fleet up to 12 buses for this
client. We have continued to invest in collaborative R&D and the funding
of the grant projects secured during the past 12 months has contributed to the
year-on-year revenue growth. Total gross margin for H1 of FY24 includes a
£157k gross loss on grants due to the partially funded nature of these
match-funded projects. Whilst grant projects are extremely valuable to the
business, funding levels for current projects is between 50% and 60% of costs
incurred, which translates in a reported gross loss for grant funded projects.
Excluding grants, there was improvement in margin rates across key product
lines but the overall blended gross margin of 14.65% (H1 FY23: 18.3%) was
slightly lower than the previous year, due to a difference in product mix.
The 34.8% growth in administrative costs is a reflection of the business
expansion and capability development that has taken place since the IPO in
July 2022, including:
* the addition of a 50,000 sq ft unit to support the production of vehicle
repowers,
* significant investment in headcount. Total headcount increased by 30 people
or 37% over the past 12 months (November 2023: 111, November 2022: 81).
Other operating income, which primarily consists of the gross RDEC revenue,
shows a year-on-year increase of 28.7% and should continue to compare
favourably to prior year figures following the increase in the RDEC rate from
13% to 20% from April
2023.
During H1, £653k of development costs have been capitalised, reflecting the
ongoing investment in products and system development. The £678k investment
in tangible fixed assets relates to plant and machinery for the new production
site.
As part of our strategy to manage supply chain risks, we have invested
significantly in stock over the past 12 months. The £1.8m increase since May
23 is primarily to support the delivery of revenue in the second half of FY24.
The cash balance of £3.9m at the end of November (2023) was aligned with our
expectations following the investments made during the first half of the year.
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2023
Period Ended Period Ended Year Ended
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
Note £ £ £
Revenue 2 2,072,750 1,054,857 5,053,540
Cost of sales (1,949,576) (823,889) (3,845,263)
Gross profit 123,174 230,968 1,208,277
Administrative expenses (3,267,845) (2,423,063) (5,346,307)
Other operating income 196,801 152,968 280,658
Share based payment charge (26,831) (40,749) (475,321)
Exceptional items - (615,064) (615,064)
Operating loss (2,974,701) (2,694,940) (4,947,757)
Interest receivable and similar income 35,414 13 16,908
Interest payable and similar expenses (20,786) (66,346) (86,505)
Loss before taxation (2,960,073) (2,761,273) (5,017,354)
Tax on loss 3 (17,862) (24,775) 185,979
Loss for the period (2,977,935) (2,786,048) (4,831,375)
Total comprehensive income for the period (2,977,935) (2,786,048) (4,831,375)
Loss for the period attributable to:
Non‑controlling interests ‑ ‑ ‑
Owners of the parent Company (2,977,935) (2,786,048) (4,831,375)
(2,977,935) (2,786,048) (4,831,375)
Basic loss per share in pence 5 (0.3) (0.4) (0.6)
INTERIM CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
Note £ £ £
Fixed assets
Intangible assets 1,390,816 460,418 783,037
Tangible assets 1,286,999 604,516 772,681
2,677,815 1,064,934 1,555,718
Current assets
Stocks 4,743,020 1,638,213 2,958,325
Debtors: amounts falling due within one year 2,418,113 1,820,115 4,501,978
Cash at bank and in hand 3,913,331 7,442,678 6,999,686
11,074,464 10,901,006 14,459,989
Creditors: amounts falling due within one year (2,514,085) (2,047,254) (1,957,276)
Net current (liabilities)/assets 8,560,379 8,853,752 12,502,713
Total assets less current liabilities 11,238,194 9,918,686 14,058,431
Creditors: amounts falling due after more than one year (385,772) (328,853) (255,183)
Provisions for liabilities
Other provisions - (99,080) -
Net (liabilities)/assets 10,852,422 9,490,753 13,803,248
Capital and reserves
Called up share capital 4 95,101 82,353 94,823
Share premium 19,128,427 13,217,647 19,128,427
Other reserves 5,748,311 5,748,311 5,748,311
Profit and loss account (15,195,796) (10,172,534) (12,217,861)
Share-based payments reserve 1,076,379 614,976 1,049,548
Equity attributable to owners of the parent Company 10,852,422 9,490,753 13,803,248
Non‑controlling interests - - -
10,852,422 9,490,753 13,803,248
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2023
Called up share capital Share premium Other reserves Profit and loss account Share-based payments reserve Equity attributable to owners of parent Company Non‑ Total equity
controlling interests
£ £ £ £ £ £ £ £
At 1 June 2023 (Audited) 94,823 19,128,427 5,748,311 (12,217,861) 1,049,548 13,803,248 - 13,803,248
Total comprehensive income for the year
Loss for the period - - - (2,977,935) - (2,977,935) - (2,977,935)
Issue of shares 278 - - - - 278 - 278
Share-based payments movement - - - - 26,831 26,831 - 26,831
At 30 November 2023 (Unaudited) 95,101 19,128,427 5,748,311 (15,195,796) 1,076,379 10,852,422 - 10,852,422
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2022
Called up share capital Share premium Other reserves Profit and loss account Share-based payments reserve Equity attributable to owners of parent Company Non‑ Total equity
controlling interests
£ £ £ £ £ £ £ £
At 1 June 2022 (Audited) 50,000 - 5,748,311 (7,386,486) 574,227 (1,013,948) - (1,013,948)
Total comprehensive income for the year
Loss for the period ‑ - ‑ (2,786,048) - (2,786,048) - (2,786,048)
Loan conversion 8,824 3,741,176 - ‑ ‑ 3,750,000 - 3,750,000
Issue of shares 23,529 9,976,471 - ‑ ‑ 10,000,000 - 10,000,000
Share issue costs ‑ (500,000) - ‑ ‑ (500,000) - (500,000)
Share-based payments movement ‑ - ‑ ‑ 40,749 40,749 - 40,749
At 30 November 2022 (Unaudited) 82,353 13,217,647 5,748,311 (10,172,534) 614,976 9,490,753 - 9,490,753
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
Called up share capital Share premium Other reserves Profit and loss account Share-based payments reserve Equity attributable to owners of parent Company Non‑ Total equity
controlling interests
£ £ £ £ £ £ £ £
At 1 June 2022 (Audited) 50,000 - 5,748,311 (7,386,486) 574,227 (1,013,948) - (1,013,948)
Total comprehensive income for the year
Loss for the year - - - (4,831,375) - (4,831,375) - (4,831,375)
Total transactions with owners
Loan conversion 8,824 3,741,176 - - - 3,750,000 - 3,750,000
Issue of shares 35,999 16,199,001 - - - 16,235,000 - 16,235,000
Share issue costs - (811,750) - - - (811,750) - (811,750)
Share-based payments charge - - - - 475,321 475,321 - 475,321
At 31 May 2023 (Audited) 94,823 19,128,427 5,748,311 (12,217,861) 1,049,548 13,803,248 - 13,803,248
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2023
Period Ended 30 November Period Ended 30 November Year Ended 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£ £ £
Cash flows from operating activities
Loss for the financial year (2,977,935) (2,786,048) (4,831,375)
Adjustments for:
Amortisation of intangible assets 45,381 - 27,380
Depreciation of tangible assets 139,403 83,436 187,108
Loss on disposal of tangible assets 24,390 (15,617) (14,951)
Interest paid 20,786 66,346 86,505
Interest received (35,414) (13) (16,908)
RDEC Taxation credit (net) (152,709) (105,619) (197,854)
SME R&D credit (17,958) - (232,389)
(Increase)/decrease in stocks (1,784,695) (830,238) (2,150,351)
(Increase)/decrease in debtors 1,834,183 206,230 (2,137,644)
Increase/(decrease) in creditors 511,736 (62,609) (156,025)
Increase/(decrease) in provisions - 55,023 (44,057)
Corporation tax received 435,575 - -
Share‑based payments charge 26,831 40,749 475,321
Net cash generated from operating activities (1,930,426) (3,348,360) (9,005,240)
Cash flows from investing activities
Purchase of tangible fixed assets (678,111) (170,696) (443,198)
Sale of tangible fixed assets - 25,500 25,500
Intangible assets - capitalisation of development costs (653,161) (460,418) (810,417)
Net cash from investing activities (1,331,272) (605,614) (1,228,115)
Period Ended 30 November Period Ended 30 November Year Ended
2023 2022 31 May
2023
(Unaudited) (Unaudited) (Audited)
£ £ £
Cash flows from financing activities
New finance leases and hire purchase contracts 255,324 106,779 106,779
Repayment of obligations under finance leases and hire purchase contracts (79,662) (68,370) (144,177)
Interest paid (20,786) (17,853) (32,434)
Interest received 20,189 13 3,540
Issue of ordinary shares 278 13,750,000 16,235,000
Conversion of convertible loan - (3,750,000) -
Share issue costs - (500,000) (811,750)
Net cash from financing activities 175,343 9,520,569 15,356,958
Net increase/(decrease) in cash and cash equivalents (3,086,355) 5,566,595 5,123,603
Cash and cash equivalents at beginning of year 6,999,686 1,876,083 1,876,083
Cash and cash equivalents at the end of period 3,913,331 7,422,678 6,999,686
Cash and cash equivalents at the end of period comprise:
Cash at bank and in hand 3,913,331 7,422,678 6,999,686
3,913,331 7,422,678 6,999,686
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2023
1. Basis of preparation
The group consists of the parent Equipmake Holdings PLC and subsidiary
Equipmake Limited. All group entities are included within the consolidation.
These interim consolidated financial statements are for the six months to 30
November 2023. The interim results are not audited and are not the statutory
accounts of the group as defined in section 434 of the Companies Act 2006.
The accounting policies and presentation that have been applied in preparing
the interim consolidated financial statements are consistent with those
applied in the preparation of the group's annual report and financial
statements for the year ended 31 May 2023, which were prepared under FRS 102.
These interim consolidated financial statements should be read in conjunction
with the annual report.
Going concern
These financial statements have been prepared on a going concern basis. The
Directors have reviewed the financial forecasts and have identified a
potential requirement to raise additional funding over the next 12 months.
Whilst the Directors expect that additional funding can be raised, this
presents a material uncertainty which may cast doubt over the Company's
ability to continue as a going concern and therefore its ability to realise
its assets and discharge its liabilities in the normal course of business. The
financial statements do not reflect any adjustments that would be required to
be made if they were prepared on a basis other than the going concern basis.
Whilst the Directors acknowledge the uncertainty described above, they have
concluded that on the basis of expected cashflows and available sources of
finance, that the Company will continue as a going concern for at least 12
months from the date of signing these financial statements and therefore it
remains appropriate to prepare the financial statements on a going concern
basis.
2. Segmental Reporting and Turnover
Segmental information is presented in respect of the
Group's operating segments based on the format that the Group reports to its
chief operating decision maker, for the purpose of allocating resources and
assessing performance. The Group considers that the chief operating decision
maker comprises the Executive Directors of the business.
The Directors manage the Group as a single business
delivering electric power train solutions across a range of markets.
Information that was made available to the chief operating decision maker in
the reporting period included a split of gross margin by customer project, and
therefore segmental information is presented along the same lines. Operating
segments that share similar characteristics have been aggregated where the
criteria for aggregation have been met.
Segmental Analysis for the Six Months Ended 30 November 2023 (Unaudited)
Powertrain (inc. vehicle integration) Powertrain (supply only) EV components Engineering projects Other Total (excluding Grants) Grants Total
Turnover 1,260,000 259,048 140,926 251,319 - 1,911,293 161,456 2,072,750
Cost of sales (1,144,584) (216,244) (84,269) (186,204) - (1,631,300) (318,275) (1,949,576)
Gross Margin 115,416 42,804 56,657 65,116 - 279,993 (156,819) 123,174
Administrative expenses - - - - - - - (3,294,676)
Other operating income - - - - - - - 196,801
Operating loss - - - - - - - (2,974,701)
Net interest - - - - - - - 14,628
Loss before taxation - - - - - - - (2,960,073)
Tax on loss - - - - - - - (17,862)
Loss for the financial year - - - - - - - (2,977,935)
Segmental Analysis for the Year Ended 31 May 2023 (Audited)
Powertrain (inc. vehicle integration) Powertrain (supply only) EV components Engineering projects Other Total (excluding Grants) Grants Total
Turnover 900,000 849,700 1,575,545 1,311,951 300,000 4,937,196 116,344 5,053,540
Cost of sales (1,016,277) (875,551) (956,171) (831,472) - (3,679,471) (165,792) (3,845,263)
Gross Margin (116,277) (25,851) 619,374 480,479 300,000 1,257,725 (49,448) 1,208,277
Administrative expenses - - - - - - - (6,436,692)
Other operating income - - - - - - - 280,658
Operating loss - - - - - - - (4,947,757)
Net interest - - - - - - - (69,597)
Loss before taxation - - - - - - - (5,017,354)
Tax on loss - - - - - - - 185,979
Loss for the financial year - - - - - - - (4,831,375)
Analysis of turnover by class of business:
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£ £ £
Powertrain (inc. vehicle integration) 1,260,000 180,000 900,000
Powertrain (supply only) 259,048 185,000 849,700
EV components 140,926 434,843 1,575,545
Engineering projects 251,319 209,023 1,311,951
Grants receivable 161,456 45,991 116,344
Other - 300,000
2,072,750 1,054,857 5,053,540
Analysis of turnover by destination:
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£ £ £
United Kingdom 1,716,027 361,288 2,550,385
Rest of Europe 299,223 352,904 1,265,000
Asia (exc. Far East) - - 300,000
Rest of world 57,500 340,665 908,955
Far East - - 29,200
2,072,750 1,054,857 5,053,540
3. Taxation
The tax charge has been estimated for the six months to 30 November 2023 based
on the anticipated tax rate and estimates of eligible R&D expenditure
against which a research and development expenditure credit (RDEC) and SME
credit can be claimed for the period. The gross RDEC claim is included within
other operating income and the SME tax credit in taxation.
4. Share Capital
30 November 30 31 May
November
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£ £ £
Allotted, called up and fully paid
951,004,051 Ordinary shares (Nov 2022 - 823,529,409) of £0.0001 (Nov 2022: 95,101 82,353 94,823
£0.0001) each
The following amendments to Share Capital took place in the period:
At 30 November 2022 ‑ Ordinary shares of £0.0001 each 82,353
Share issue - 124,700,000 Ordinary Shares of £0.0001 each 12,470
At 31 May 2023 ‑ Ordinary shares of £0.0001 each 94,823
Share issue - 2,775,132 Ordinary Shares of £0.0001 each 278
At 30 November 2023 ‑ Ordinary shares of £0.0001 each 95,101
5. Earnings per share
The calculation of basic loss per share of 0.3 pence for the six months ended
30 November 2023 is based on the loss for the period of £2,977,935 and the
weighted average number of shares in issue during the period of 948,456,879.
The group was loss-making for all periods presented in these statements;
therefore, the dilutive effect of share options has not been taken into
account in the calculation of diluted earnings per share, since this would
decrease the loss per share for each reporting period.
6. Share-based payments
The company operates a share-based remuneration scheme for employees,
directors and stakeholders. A charge has been recognised in respect of
employee share options in the period based on the fair value of the options at
the grant date, estimated using the Black Scholes model.
No new options were granted in the 6 months to 30 November 2023.
30 30 31
November November May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£ £ £
Equity‑settled schemes recognised in the profit or loss for the period 26,831 40,749 475,321
26,831 40,749 475,321
**ENDS**
For further information, please contact:
Equipmake Via St Brides Partners
Ian Foley, Founder and CEO
Steven McGillivray, CFO
Panmure Gordon (Corporate Adviser & Joint Broker) Tel: +44 (0) 20 7886 2500
James Sinclair-Ford / Freddie Twist
Hugh Rich / Sam Elder
VSA Capital Limited (Joint Broker) Tel: +44 (0) 20 3005 5000
Simon Barton / Simba Khatai / Alex Cabral
St Brides Partners (Financial PR Adviser) Tel: +44 (0) 20 7236 1177
equipmake@stbridespartners.co.uk
Susie Geliher / Paul Dulieu
About Equipmake
Equipmake is the UK-based engineering specialist pioneering the development
and production of electrification products to meet the needs of the
automotive, aerospace and other sectors in support of the transition from
conventional fossil-fuelled to zero-emission powertrains.
Equipmake is a leader in ultra-high performance electric motors and complete
EV drivetrains and ultra-fast power electronic systems. As well as developing
proprietary technology - such as an ultra-compact, lightweight high
performance spoke motor - it also offers industry-leading EV consultancy.
Equipmake has developed a vertically integrated solution providing fully
bespoke solutions. The Company has built a significant pipeline of
opportunities, as demand for electric vehicles increases as part of the global
decarbonisation movement.
**ENDS**
For further information, please contact:
Equipmake Via St Brides Partners
Ian Foley, Founder and CEO
Steven McGillivray, CFO
Panmure Gordon (Corporate Adviser & Joint Broker) Tel: +44 (0) 20 7886 2500
James Sinclair-Ford / Freddie Twist
Hugh Rich / Sam Elder
VSA Capital Limited (Joint Broker) Tel: +44 (0) 20 3005 5000
Simon Barton / Simba Khatai / Alex Cabral
St Brides Partners (Financial PR Adviser) Tel: +44 (0) 20 7236 1177
equipmake@stbridespartners.co.uk
Susie Geliher / Paul Dulieu
About Equipmake
Equipmake is the UK-based engineering specialist pioneering the development
and production of electrification products to meet the needs of the
automotive, aerospace and other sectors in support of the transition from
conventional fossil-fuelled to zero-emission powertrains.
Equipmake is a leader in ultra-high performance electric motors and complete
EV drivetrains and ultra-fast power electronic systems. As well as developing
proprietary technology - such as an ultra-compact, lightweight high
performance spoke motor - it also offers industry-leading EV consultancy.
Equipmake has developed a vertically integrated solution providing fully
bespoke solutions. The Company has built a significant pipeline of
opportunities, as demand for electric vehicles increases as part of the global
decarbonisation movement.
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