Equipmake Holdings - RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
10/01/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250110:nRSJ8274Sa&default-theme=true
RNS Number : 8274S Equipmake Holdings PLC 10 January 2025
10 January 2025
EQUIPMAKE HOLDINGS PLC
("Equipmake" or the "Company")
RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
Equipmake, a market leader in engineering-driven differentiated
electrification technologies, products and solutions across the automotive,
truck, bus and speciality vehicle industries, is pleased to announce its
unaudited results for the six-month period ended 30 November 2024 ("H1 FY25").
Financial Highlights
• Half year revenue (including grants) up by 19% to £2.47m.
• Half year revenue from EV components of £253,587, an 80% year-on-year
increase.
• Improvement in gross margins for repowered vehicles to -47%, from -75% in the
full year to May 2024. Ongoing cost reduction initiatives are expected to
deliver further margin improvements in the second half of the year.
• Operating losses before exceptionals of £3.95m, (H1 24: loss of £2.97m), in
line with expectations.
• Bus repowering services have been materially scaled down with ongoing
annualised cost saving of about £2m
◦ Bus repowering services provided the Company with an excellent early
opportunity to deploy its products into real world, customer-driven
environments, showcasing the quality and efficiency of Equipmake's offering.
However, at low volumes it was not possible to generate sustainable gross
margins from this business. It has, however, been a strategically important
shop window for a higher-margin Drivetrain and EV Components supply business,
in a variety of operating domains including public transport, industrial and
aerospace.
• Significant cost-reduction initiatives including a manufacturing improvements
programme and materially lower-cost battery and component sourcing.
• Contracted order book1 of £11m as of 9th January 2025.
• Raised approximately £3m through a Placing and Subscription in October 2024.
• Cash as of 30 November 2024 was £2.04m (30 November 2023: £3.91m).
Operational Highlights
• Achieved further traction in Drivetrain and EV Components Supply to OEM and
Tier 1 customers, including:
◦ Argentina's first, domestically manufactured, electric bus which entered
operation in Buenos Aires;
◦ An initial order for five Zero Emission Drivetrains ("ZEDs") from South
American bus manufacturer Agrale S.A. ("Agrale");
◦ An order from Agrale to supply specialised parts to support the
development of a prototype electric/ethanol hybrid lightweight bus; and
◦ Signing a manufacturing and supply agreement for ZEDs with Textron (a
Fortune 500 company), a leading global manufacturer of airport ground support
vehicles.
• Contract secured with leading UK Tour Bus operator, Golden Tours, to repower
ten Volvo B5 London tour busses.
• Doubled the continuous power output of HTM-3500 motor, reinforcing Equipmake's
strong position in the rapidly expanding global market for electrification
technology.
• Continued discussions with a major automotive supplier in relation to it
licencing the Group's functional safety technology and systems integration
capability for its commercial vehicle business. It is envisaged this licensing
agreement would total $6 million (equivalent to approximately £4.6 million)
of milestone payments over two years, as well as future volume-based royalty
revenues.
Post Period End
• December 2024: Commenced a Strategic Review and Formal Sale Process, as the
Company did not have confirmation from the potential licensee, or any other
potential licensee, as to when licences currently under negotiation would be
entered into, if at all.
• December 2024: ZED system approved for bus and coach repowering under the UK
Energy Saving Trust's Zero Emission Vehicle Repower Accreditation Scheme
("ZEVRAS").
• Jon Beasley will be stepping down from his role as an Independent
Non-Executive Director of the Company for personal reasons, effective prior to
the Company's Annual General Meeting on 15 January 2025. The Board extends its
gratitude to Jon for his contribution over the past two and a half years.
(1) The contracted orderbook is orders that have been contracted but where
revenue has not been recognised.
Commenting of the results, Ian Foley, CEO of Equipmake said: "H1 FY25 has been
a period of significant progress for Equipmake as we shifted our focus towards
higher margin Drivetrain and EV Components business and laid the foundations
for long-term profitability and growth. By scaling back our bus repowering
activities and moving away from lower margin business units, we are starting
to leverage the credibility and success that our technology has gained in
real-world applications. This strategic shift is further bolstered by the
exciting new partnerships we are developing with leading global OEMs and Tier
1 customers, such as Textron and Agrale.
"During the period we have taken significant steps to enhance operational
efficiencies and reduce costs, but the strategic review and formal sale
process we are now undertaking are necessary steps to ensure we can capitalise
on the growing demand for our electrification technologies. I remain confident
that Equipmake's innovative solutions and the strong relationships we are
cultivating will enable us to secure a pathway to sustainable growth and
long-term value creation for all stakeholders."
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
Period Ended Period Ended Year Ended
30 November 30 November 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
Note £ £ £
Revenue 2 2,470,874 2,072,750 8,068,348
Cost of sales (3,305,861) (1,949,576) (10,697,440)
Gross profit (834,986) 123,174 (2,620,092)
Administrative expenses (3,245,792) (3,267,845) (5,794,323)
Other operating income 128,601 196,801 509,681
Share based payment charge 0 (35,414) (45,000)
Exceptional items (336,752) - (1,034,029)
Operating loss (4,288,930) (2,974,701) (9,092,763)
Interest receivable and similar income 7,561 35,414 54,303
Interest payable and similar expenses (30,645) (20,786) (48,787)
Loss before taxation (4,312,014) (2,960,073) (9,087,246)
Tax on loss 3 (11,250) (17,862) (112,753)
Loss for the period (4,323,264) (2,977,935) (9,200,000)
Total comprehensive income for the period (4,323,264) (2,977,935) (9,200,000)
Loss for the period attributable to:
Non‑controlling interests ‑ ‑ ‑
Owners of the parent Company (4,323,264) (2,977,935) (9,200,000)
(4,323,264) (2,977,935) (9,200,000)
Basic loss per share in pence 5 (0.4) (0.3) (0.95)
INTERIM CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 30 November 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
Note £ £ £
Fixed assets
Intangible assets 1,571,362 1,390,816 1,243,017
Tangible assets 1,555,382 1,286,999 1,647,350
3,126,744 2,677,815 2,890,367
Current assets
Stocks 3,581,616 4,743,020 3,554,641
Debtors: amounts falling due within one year 2,905,992 2,418,113 4,165,054
Cash at bank and in hand 2,043,838 3,913,331 2,480,124
8,531,446 11,074,464 10,199,819
Creditors: amounts falling due within one year (4,059,642) (2,514,085) (3,786,940)
Net current (liabilities)/assets 4,471,804 8,560,379 6,412,879
Total assets less current liabilities 7,598,548 11,238,194 9,303,246
Creditors: amounts falling due after more than one year
(307,834) (385,772) (307,834)
Provisions for liabilities
Onerous contracts provision (41,000) - (358,000)
Net (liabilities)/assets 7,249,714 10,852,422 8,637,412
Capital and reserves
Called up share capital 4 112,007 95,101 102,007
Share premium 26,035,512 19,128,427 23,098,012
Other reserves 6,842,851 5,748,311 6,842,851
Profit and loss account (25,740,656) (15,195,796) (21,405,458)
Share-based payments reserve 0 1,076,379 -
Equity attributable to owners of the parent Company
7,249,714 10,852,422 8,637,412
Non‑controlling interests - - -
7,249,714 10,852,422 8,637,412
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
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 2024 (Audited) 102,007 23,098,012 5,748,311 (21,417,392) 1,094,540 8,625,478 - 8,625,478
Total comprehensive income for the year
Loss for the period - - - (4,039,012) - (4,039,012) - (4,039,012)
Issue of shares 10,000 2,990,000 - - - 3,000,000 - 3,000,000
Share-based payments movement - (52,500) - (284,252) (336,752) - (336,752)
At 30 November 2024 (Unaudited) 112,007 26,035,512 5,748,311 (25,740,655) 1,094,540 7,249,714 - 7,249,714
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 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
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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) 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 year - - - (9,199,531) - (9,199,531) - (9,199,531)
Total transactions with owners
Loan conversion
Issue of shares 7,185 4,137,295 - - - 4,144,479 - 4,144,479
Share issue costs - (167,710) - - - (167,710) - (167,710)
Share-based payments charge - - - - 44,992 44,992 - 44,992
At 31 May 2023 (Audited) 102,008 23,098,012 5,748,311 (21,417,392) 1,094,540 8,625,479 - 8,625,479
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
Period Ended 30 November Period Ended 30 November Year Ended 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£ £ £
Cash flows from operating activities
Loss for the financial year (4,323,264) (2,977,935) (9,199,531)
Adjustments for:
Amortisation of intangible assets 257,574 45,381 158,000
Depreciation of tangible assets 191,784 139,403 343,000
Loss on disposal of tangible assets (24,409) 24,390 51,000
Impairment of capitalised development 408,000
Interest paid 30,645 20,786 49,000
Interest received (7,561) (35,414) (54,000)
RDEC Taxation credit (net) (117,184) (152,709) (476,000)
SME R&D credit received - (17,958) 777,000
(Increase)/decrease in stocks (26,975) (1,784,695) (597,000)
(Increase)/decrease in debtors 1,259,062 1,834,183 38,000
Increase/(decrease) in creditors 260,769 511,736 1,813,000
Increase/(decrease) in provisions 126,867 - 358,000
Corporation tax received - 435,575 -
Share‑based payments charge - 26,831 45,000
Net cash generated from operating activities (2,372,692) (1,930,426) (6,286,531)
Cash flows from investing activities
Purchase of tangible fixed assets (99,817) (678,111) (1,241,000)
Sale of tangible fixed assets - - -
Intangible assets - capitalisation of development costs (585,920)) (653,161) (1,053,000)
Net cash from investing activities (685,737) (1,331,272) (2,294,000)
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
Period Ended 30 November Period Ended 30 November Year Ended
2024 2023 31 May
2024
(Unaudited) (Unaudited) (Audited)
£ £ £
Cash flows from financing activities
New finance leases and hire purchase contracts 0 255,324 255,000
Repayment of obligations under finance leases and hire purchase contracts (18,367) (79,662) (176,000)
Interest paid (30,645) (20,786) (49,000)
Interest received 7,561 20,189 54,000
Issue of ordinary shares 3,000,000 278 4,144,000
Conversion of convertible loan - - -
Share issue costs (336,752) - (167,000)
Net cash from financing activities 2,621,797 175,343 4,061,000
Net increase/(decrease) in cash and cash equivalents (436,632) (3,086,355) (4,519,531)
Cash and cash equivalents at beginning of year 2,480,469 6,999,686 7,000,000
Cash and cash equivalents at the end of period 2,043,838 3,913,331 2,480,469
Cash and cash equivalents at the end of period comprise:
Cash at bank and in hand 2,043,838 3,913,331 2,480,469
2,043,838 3,913,331 2,480,469
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 NOVEMBER 2024
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 2024. 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 2024, 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
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.
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 2024 (Unaudited)
Powertrain (inc. vehicle integration) Powertrain (supply only) EV components Engineering projects Other Total (excluding Grants) Grants Total
Turnover 1,532,859 (2,733) 253,587 141,228 23,648 1,948,588 522,286 2,470,874
Cost of sales (2,254,070) (73,974) (155,439) (87,406) - (2,570,889) (734,971) (3,305,861)
Gross Margin (721,211) (76,708) 98,148 53,822 - (622,301) (212,685) (834,986)
Administrative expenses - - - - - - - (3,582,544)
Other operating income - - - - - - - 128,601
Operating loss - - - - - - - (4,288,930)
Net interest - - - - - - - (23,084)
Loss before taxation - - - - - - - (4,312,014)
Tax on loss - - - - - - - (11,250)
Loss for the financial year - - - - - - - (4,323,264)
2. Segmental Reporting and Turnover (continued)
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)
2. Segmental Reporting and Turnover (continued)
Segmental Analysis for the Year Ended 31 May 2024 (Audited)
Powertrain (inc. vehicle integration) Powertrain (supply only) EV components Engineering projects Other Total (excluding Grants) Grants Total
Turnover 3,854,000 2,181,000 846,000 399,000 - 7,280,000 788,000 8,068,000
Cost of sales (6,770,000) (1,548,000) (609,000) (297,000) - (9,224,000) (1,473,000) (10,697,000)
Gross Margin (2,916,000) 633,000 237,000 102,000 0 (1,944,000) (685,000) (2,629,000)
Administrative expenses - - - - - - - (6,972,000)
Other operating income - - - - - - - 509,000
Operating loss - - - - - - - (9,092,000)
Net interest - - - - - - - 5,000
Loss before taxation - - - - - - - (9,087,000)
Tax on loss - - - - - - - (113,000)
Loss for the financial year - - - - - - - (9,200,000)
2. Segmental Reporting and Turnover (continued)
Analysis of turnover by class of business:
30 November 30 November 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£ £ £
Powertrain (inc. vehicle integration) 1,542,859 1,260,000 3,854,000
Powertrain (supply only) (2,733) 259,048 2,181,000
EV components 253,587 140,926 846,000
Engineering projects 141,228 251,319 399,000
Grants receivable 522,286 161,456 788,000
Other 23,648 - -
2,470,874 2,072,750 8,068,000
Analysis of turnover by destination:
30 November 30 November 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£ £ £
United Kingdom 2,081,644 1,716,027 6,165,000
Rest of Europe 365,583 299,223 1,772,000
Rest of world 23,648 57,500 131,000
2,470,874 2,072,750 5,053,540
3. Taxation
The tax charge has been estimated for the six months to 30 November 2024 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 November 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£ £ £
Allotted, called up and fully paid
1,120,074,565 Ordinary shares (Nov 2023 - 951,004,051) of £0.0001 (Nov 2023: 112,007 95,101 102,008
£0.0001) each
The following amendments to Share Capital took place in the period:
At 30 November 2023 ‑ Ordinary shares of £0.0001 each 95,101
Share issue - 69,070,028 Ordinary Shares of £0.0001 each on conversion of 6,907
convertible loan
At 31 May 2024 ‑ Ordinary shares of £0.0001 each 102,008
Share issue - 99,999,996 Ordinary Shares of £0.0001 each 9,999
At 30 November 2024 ‑ Ordinary shares of £0.0001 each 112,007
5. Earnings per share
The calculation of basic loss per share of 0.42 pence for the six months ended
30 November 2024 is based on the loss for the period of £4,323,264 and the
weighted average number of shares in issue during the period of 1,026,923,884.
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 2024.
30 November 30 November 31 May
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£ £ £
Equity‑settled schemes recognised in the profit or loss for the period - 26,831 44,992
- 26,831 44,992
For further information, please contact:
Equipmake Via St Brides Partners
Clive Scrivener, Non-Executive Chairman
Ian Foley, CEO
VSA Capital (Rule 3 and Financial Adviser, Aquis Corporate Adviser and Tel: +44 (0) 20 3005 5000
Broker)
Andrew Raca / Simon Barton
PricewaterhouseCoopers LLP (Financial Adviser) Tel: +44 (0) 20 7583 5000
Jamie Peel / Jon Raggett
St Brides Partners (Financial PR Adviser) Tel: +44 (0) 20 7236 1177
equipmake@stbridespartners.co.uk
Susie Geliher / Paul Dulieu / Will Turner
About Equipmake
Equipmake is a UK-based industrial technology company specialising in the
engineering, development and production of electrification products to meet
the needs of the automotive and other sectors in support of the transition
from fossil-fuelled to zero-emission drivetrains.
Equipmake is a leader in high performance technologically advanced electric
motors, inverters and complete zero-emission electric drivetrains and power
electronic systems. Equipmake has developed a vertically integrated offering
providing fully bespoke solutions to its customers. The Company is focussed on
accelerating traction with OEM and Tier 1 suppliers in relation to higher
margin component and drivetrain supply under long-term growth contracts and
securing high margin licencing transactions.
Key differentiators of the Company offerings are its advanced technology and
performance, reliability and adherence to ASIL-D(1) functional safety.
Equipmake's advanced motor and inverter technology, featuring ASIL-D
compliance, are designed to customers' highest Functional Safety standards.
With decades of experience in electric drivetrain integration and a dedicated
prototype vehicle testing facility, Equipmake can significantly accelerate
product development for customers.
(1) Automotive Safety Integrity Level ("ASIL") is a risk classification scheme
defined by the ISO 26262 - Functional Safety for Road Vehicles standard and is
a critical requirement for road vehicles. Of the four ASILs identified by the
standard, ASIL-D dictates the highest integrity requirements on the product,
which require exceptional rigour in their development.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END NEXDZGGMGLDGKZZ