REG - Gelion PLC - Interim results to 31 December 2024
19/03/2025 07:15
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RNS Number : 2044B Gelion PLC 19 March 2025
19 March 2025
Gelion plc
("Gelion" or the "Company" or the "Group")
Interim results to 31 December 2024
Gelion (AIM: GELN), the global energy storage innovator, announces its
unaudited interim results for the six months ended 31 December 2024 (H1 FY25),
a period in which the Company made significant technical and commercial
progress, including signing commercial orders to generate revenue and gross
margin to be recognised in the second half of FY25.
Operational highlights
· Achieved a breakthrough 402 Wh/kg energy density with Gelion's GEN 3 lithium
sulfur (Li-S) technology, making it over 60% lighter than a comparable
lithium-ion battery.
· Successfully fabricated advanced sulfide-based solid-state separators using
the novel IP licensed from Oxford University Innovation Limited (Oxford
University), enabling Gelion to proceed to the next stage of optimisation
which has the potential to increase the cycle life of its high energy density
GEN 3 Li-S cells.
· Launched Energy Storage Integration Solutions division, with an initial £1
million commercial order, with revenue and margin recognised in H2 FY25.
· Established Battery Minerals, a UK subsidiary, to commercialise the acquired
Johnson Matthey IP and secured funding from the UK government's Department of
Business and Trade (DBT), facilitated by the Advanced Propulsion Centre UK
("APC") as part of the Technology Developer Accelerator Programme ("TDAP") to
support the optimisation of commercial pathways.
· Awarded c.£2.5 million grant by the Australian Renewable Energy
Agency ("ARENA") as matched funding to implement its Advanced Commercial
Prototyping Centre ("ACPC") Project in Sydney to produce, optimise and test
its next generation GEN 3 (Li-S and Silicon Sulfur (Si-S)) battery
technologies. The Project will commence upon Gelion securing appropriate
co-funding.
· Successfully raised gross proceeds of £1.86 million of which £1.7 million
was raised pursuant to the placing, subscription and retail offer from
existing, new investors and Directors.
Financial highlights
· Total income of £0.4m (H1 FY24: £0.04m), reflecting the grant income for
OXLID.
· Adjusted EBITDA loss 1 (#_ftn1) of £2.9m (H1 FY24: £3.2m), driven by an
increase in total income and largely stable cost base despite the inclusion of
the six-month financial results of OXLiD.
· Cash at period end of £3.5m (June 24: £3.8m) with nil debt.
Post-period end
· Appointed Dr Graham Cooley as a Non-Executive Director, who brings a wealth of
relevant experience through his background in power, energy storage and
hydrogen sectors.
· A further 7.6% 2 (#_ftn2) (£0.5m) of cost savings has been achieved, driven
primarily by reduced Directors' fees, salaries and discretionary expenses.
This builds on the c.£1.1m in savings realised over the last 18 months,
bringing the total estimated decrease in costs to 21% from the FY23 cost base.
Approximately 52% of these savings are attributed to lower salaries and wages,
with the remainder coming from reduced R&D and administrative expenses.
· Demonstrated the proprietary GEN 3 Sulfur Cathode material viability with
solid-state electrolytes, positioning Gelion for a strong market presence in
both liquid and solid-state cells.
· Successful award of three patents in the United States for the Group's core
Li-S technology and the acceptance of one of its recycling patent applications
by the United States Patent and Trademark Office (USPTO), further
strengthening Gelion's IP portfolio.
· Successful completion of Phase 1 of the TDAP, securing a further £100,000
grant for Phase 2, plus a £75,000 booster grant indicating the validation
from the APC and partners for Battery Minerals' technology potential and
recognising the commercial traction achieved.
John Wood, CEO of Gelion, commented: "H1 FY25 marked significant progress in
strengthening our technological position in sulfur-based battery development.
We have successfully unified Gelion's talent and expertise-including OXLiD and
the extensive ex-Oxis IP portfolio acquired from Johnson Matthey-into a
single, focused sulfur technology development program. This consolidation is
delivering promising test results, reinforcing our confidence in Gelion's role
in the anticipated breakthrough trajectory for sulfur chemistry.
"At the same time, we have started building revenue and margin through our
Integration Solutions business unit. This initiative leverages Gelion's deep
battery expertise to enhance solution engineering while providing valuable
real-world application insights that feed back into our own battery technology
development. Additionally, we see strong synergies between our integration
activities and the supply chain partnerships we are developing for our own
battery technologies as they mature.
"We are confident that 2025 will validate the value of our combined
focus-advancing technological leadership in sulfur technology while driving
commercial success through strategic collaborations and direct sales in our
integration efforts."
CONTACTS
Gelion plc via Alma
John Wood, CEO
Amit Gupta, CFO
Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker) +44 20 7220 0500
Corporate Finance
Neil McDonald / Seamus Fricker / Adam Rae
Sales
Louise Talbot
Oberon Capital (Joint Broker) +44 20 3179 5300
Nick Lovering/ Mike Seabrook / Adam Pollock
Alma Strategic Communications (Financial PR) +44 20 3405 0205
Justine James / Hannah Campbell / Will Ellis Hancock gelion@almastrategic.com (mailto:gelion@almastrategic.com)
About Gelion
Gelion ("gel: ion") is a global energy storage innovator, supporting the
transition to a more sustainable economy by commercialising two globally
important next generation technologies: Lithium-Sulfur (LiS) and Zinc-based
(Zn) hybrid cells to electrify mobile and stationary applications. Gelion plc
(the Group) is listed on the London Stock Exchange's Alternative Investment
Market and wholly owns Australia based Gelion Technologies Pty Ltd and UK
based OXLiD Ltd. Gelion is designing and delivering innovative battery
technologies and integrated systems solutions to enable that transition and
return value for its customers and investors.
Lithium Sulfur
Gelion's effort is directed at the potential for the Li-S chemistry to deliver
double the gravimetric energy density of standard Lithium-ion chemistries,
whilst concurrently reducing cost and increasing safety, targeting the EV and
e-aviation market, helping to make global transport, energy consumption and
storage more sustainable.
Gelion is developing a GEN 3 Lithium-Sulfur cell product for its high energy
density sulfur cathode at its expanded R&D facilities in Australia and UK,
enabling it to integrate with a variety of anodes ranging from graphite to
silicon to lithium-metal, depending on the targeted application.
Gelion's GEN 3 cell unlocks the potential of sulfur batteries for a wide range
of global mobile applications including electrical
vertical-take-off-and-landing (eVTOL), drone markets, electric vehicles (EVs)
and stationary energy storage (ESS).
Advantages of Gelion's GEN 3 Lithium Sulfur
· High energy density - Energy density > 400 Wh/kg, when
using a 10+ Ah pouch cell.
· Semi-solid-state / Solid-State as a route to increased
longevity/cycle life: GEN 3 employs a semi-solid-state and solid-state
mechanism which mitigates the major degradation factor associated with
conventional Li-S technology.
· Improved safety - Sulfur technology may be more stable at high
temperatures, minimising risk of thermal runaway related fires and explosions.
· Increased sulfur utilisation: GEN 3 demonstrates the full
theoretical capacity of sulfur, i.e. a much higher sulfur utilisation than
found in conventional Li-S approaches.
· Simplified supply chain: The innovative cathode is produced by
mixing commercially available materials with abundant sulfur using a
low-energy, room-temperature process, with potential to eliminate the need for
pre-fabrication of the sulfur composite (sulfur composite is related to
cathode active material in conventional lithium-ion batteries), streamlining
the associated supply chain and production process and enabling localised
manufacturing.
· Environmental and economic benefits: The water-based,
standard-atmosphere cathode production process eliminates the need for toxic
solvents, leading to significant cost savings and enhanced manufacturability.
Glossary
1MPa This level of pressure replicates real-world pressure conditions inside
batteries and is crucial for ensuring the durability, efficiency, and
performance of the separator in practical applications.
Ah Ampere hours. A measure of capacity stored in the cell. The larger the number
the higher the capacity.
Energy density (Wh/kg) The ratio of energy stored per unit weight i.e. Watt-hours per kilogram. The
higher the number the lighter the battery.
Pouch cell An industry standard format of a battery which comprises a flat pouch-shaped
design with a multi-layered laminate structure.
Solid-to-solid conversion A low or polysulfide-free conversion of sulfur within the cathode.
Polysulfides are a dissolved form of sulfur that is corrosive and reduces
cycle life in traditional lithium-sulfur batteries. Solid-to-solid conversion
helps mitigate the formation of these polysulfides.
Semi-solid state as a route to increased longevity/cycle life Gelion's GEN 3 technology can employ a semi-solid-state mechanism, maintaining
the sulfur-based cathode materials in the cathode, preventing their diffusion
into the electrolyte and diminishing associated battery degradation caused by
reactive polysulfides. This approach mitigates the major degradation factor
associated with conventional Li-S technology.
Solid state separator A solid-state separator is a solid material that separates the anode and
cathode in a battery, enabling ion transfer while preventing short circuits
enhancing battery safety, supports higher energy densities, and allows stable
use of a lithium metal anode, increasing capacity and lifespan.
Cycle life The number of full charge and discharge cycles a battery can complete before
its capacity falls below a specified level, typically 80% of the original
capacity. Higher cycle life indicates longer-lasting performance.
Zinc
Gelion is adapting its zinc technology to comprise an alternate cathode
technology, a zinc hybrid cell to develop complementary next-generation
batteries for the lead-acid eco-system. Early testing indicates that this
solution has the potential to maintain good energy density levels with
enhanced cost and safety aspects. Once fully developed, Gelion intends for our
zinc technology to provide a durable and sustainable market extension within
the ecosystem that supports lead-acid batteries.
Recycling
Gelion is pioneering an innovative battery recycling technology, focusing on
lithium extraction and designed to enhance and supplement current recycling
methods. Our technology aims to significantly reduce the initial costs of
recycling plants, minimize waste, and lower carbon emissions, while improving
the purity of metal products and enabling efficient lithium extraction. This
advancement will allow for a broader range of scrap materials to be recycled.
Currently in the feasibility stage, Gelion is committed to advancing our
technology to a pilot-scale demonstration, paving the way for
commercialisation through material production and IP licensing.
Integration
Gelion leverages its significant integration and BMS capability to deliver
bespoke BESS for Australian customers. These BESS are currently based on
lithium-ion technology and will also include Gelion's next-generation
batteries as these become available. Gelion will deploy BESS with our
proprietary cloud-based battery monitoring system, which will provide
real-time diagnostics and alerts to maximise performance and return on
investment for our customers.
Chief Executive Officer's statement
Gelion made significant progress in the first half H1 FY25, successfully
achieving key technological milestones and strategic objectives while actively
reducing its cost base. We have continued to implement our strategy, focusing
activities towards acceleration of our core Li-S technology and Integration
Solutions business divisions. This has allowed us to effectively use our
resources, delivering on both operational milestones and cost efficiencies.
We recognise the exponential growth requirement in both mobile and stationary
energy storage to facilitate the global energy transition, and resulting need
for low-cost, readily available, and scalable storage technologies. Gelion
remains committed to delivering energy storage solutions that support this
transition and capitalise on the immense opportunity that this transition
presents for our shareholders.
Gelion is focused on expanding and developing our global cooperation network.
We continue to foster and strengthen commercial partnerships through
technology and material collaborations. In addition, the team continues to
work towards realising independent funding by partnering with strategic
investors, which will facilitate the introduction of our innovative
technologies to market.
Technological progress
Li-S Battery Technology
We achieved several key milestones with our Li-S technology in H1 FY25. This
included successfully meeting our initial energy density target through the
production of a 12 Ah pouch cell with an energy density of 402 Wh/kg. This is
over 60% higher than the gravimetric energy density currently attainable with
a lithium-ion battery (i.e. Li-NMC) of equivalent capacity. This was a
significant achievement and clearly demonstrates one of the main advantages of
a Li-S battery over incumbent technologies.
Gelion has purposefully designed its sulfur-based cathode technology to
support the future evolution of battery solutions. While our current GEN 3
Li-S technology pairs our cathodes with a lithium metal anode and our
proprietary liquid electrolyte, we believe that our cathodes offer broader
optionality. This includes expected compatibility with alternate anode
technologies such as silicon-based anodes as well as solid-state electrolytes.
Although our cathode material demonstrates wide compatibility, further
optimisation may be required to achieve performance objectives based on the
full cell composition, particularly given the fundamental differences between
liquid-based and solid-state technologies.
The broad compatibility of our cathode ensures Gelion remains forward focused
toward expanding its product range to target a range of market segments.
Gelion's strategy is to achieve this while simultaneously controlling the
scope of expenditure typically required to bring additional products to market
by leveraging our existing technology and expertise to collaborate with
partners rather than reinventing within and across the existing supply chain.
In November 2024, we successfully fabricated an advanced solid-state
electrolyte separator (SES), which used intellectual property (IP) licensed
from Oxford University Innovation Limited. SESs are a recognised approach to
mitigate key safety concerns for lithium metal-based batteries. Our approach
produces an ultra-thin, lightweight SES using readily scalable manufacturing
processes. This has the potential to significantly enhance cycle-life and
increase energy density, not only for our GEN 3 Li-S batteries but also for
other existing lithium metal-based lithium-ion technologies. This development
provides an approach that bridges the gap between traditional liquid
electrolyte-based batteries and the next-generation all-solid-state
technologies. Gelion will continue to work to develop and validate this
technology.
Gelion has also recently initiated research to validate the applicability of
our cathode technology for an all-solid-state system. We were pleased to
update our shareholders as to our progress in this direction post-period end.
Gelion engaged a renowned European research institution to conduct independent
testing that employed our GEN 3 cathode materials in a solid-state battery.
This research confirmed the compatibility of our cathodes for pairing with
solid-state electrolytes. This development means Gelion has a technology with
the potential to complement and establish a significant market presence
alongside traditional Li-ion cathode chemistries (e.g. NMC or LFP).
In summary, in H1 FY25, we successfully demonstrated a high energy density for
our GEN 3 cathode while also substantiating its broader compatibility. It is
anticipated that these developments will result in safer, longer lasting, and
lighter batteries, while also accelerating Gelion's expansion across a range
of battery technologies. These technological advancements bring us closer to
offering high-performance, cost-effective solutions for electric vehicles,
drones, and energy storage systems.
Australian Renewable Energy Agency (ARENA)
In December, Gelion was awarded a c.£2.5m (A$4.8m) match funding grant by
ARENA. This Australian government grant initiative will provide funding for
the construction and operation of our planned Advanced Commercial Prototype
Centre (ACPC) in Sydney. The ACPC Project will provide Gelion with new
capabilities, facilitating the optimisation of both our technology and
manufacturing processes. The produced next-generation batteries will be
provided to prospective global partners and customers for testing and
performance validation.
The ACPC Project is due to commence upon Gelion securing appropriate
co-funding. As such, our short-term focus is to secure additional supportive
investment, which we aim to achieve by securing a strategic investor to
co-fund the Australian government grant and the general working capital of the
business.
This marks an important stage in our growth, linking our advanced battery
solutions with a global network of partners committed to commercialisation.
The support of investors and government agencies, like ARENA in Australia and
the Faraday Institute in the UK, empowers us to deliver on our vision, create
value, and solidify Gelion's position in the evolving battery technology
space.
Integration Solutions
In October 2024, we launched our Energy Storage Integration Solutions
business, and secured the first commercial order, signing a £1 million
contract to supply two battery energy storage systems (BESS) to Group Energy
Pty Ltd, part of the Borg Group. This initial project is expected to be
successfully delivered in the coming months, with the revenue and profit to be
recognised in the current financial year (FY25).
Our focus is on successfully delivering these first integration solution
systems, prior to firmly committing to other commercial orders. This will
allow us to develop our cloud-based monitoring systems, while simultaneously
strengthening third-party collaborations and establishing product pipelines.
This measured approach will enable us to continue to build this business from
the initial commercial success. We are building our pipeline as we have
received interest in our integration solutions from other parties with
discussions for orders ongoing.
While the current products employ commercially available lithium-ion
batteries, this develops capabilities, establishes partnerships, and lays the
foundation to bring our own technologies to market. This business will enable
Gelion to build consumer confidence through a proven record for delivering
projects, facilitating the commercialisation and introduction of our
proprietary storage technologies to the market.
Technology Incubation
The Board recognises the prospective value and market opportunities inherent
in both its zinc-based battery and battery recycling technologies. While we
see clear potential in these two technologies, these require capital
investment to attain market readiness. Therefore, in accordance with Gelion's
strategic plan, we are currently incubating these technologies, reducing
costs, accessing non-dilutive capital while we explore opportunities for
independent investment. This approach will provide the best chance for
success, while remaining cost effective and enabling the team to focus its
efforts towards the progression of the Group's core businesses, being Li-S and
Integration Solutions.
Battery Recycling
In H1 FY25, we also launched a new UK subsidiary, Battery Minerals Ltd, with
the aim to commercialise the intellectual property (IP) portfolio acquired
from Johnson Matthey in 2023. Battery Minerals' technology focusses on
developing lithium-first approach for the recovery of valuable metals from
end-of-life batteries.
Battery Minerals was awarded a grant of up to £170,000 as part of the
Advanced Propulsion Centre UK's (APC) TDAP. This funding was used to support a
market-focused study, involving in-depth techno-economic modelling and the
development of a product strategy with support from industry partners. As a
result, we have established the commercial viability of our recycling approach
and identified clear pathways to commercialisation for this technology.
I am pleased to report that, post-period end, we were successful in our
application to Phase Two of this programme. This provides an additional
£100,000 in grant funding, with Battery Minerals additionally being awarded a
£75,000 booster grant. Progression to Phase 2 of the programme indicates the
validation from the APC and partners for Battery Minerals technology's
potential and recognising the commercial traction achieved.
Phase 2 of TDAP, running between February 2025 and November 2025, focuses on
'Technology Validation' and will involve further development of the recycling
process with partners to increase the technology-readiness level ("TRL") and
potentially support a feasibility study for a larger scale pilot plant.
Zinc-based Technology
Gelion is continuing to develop our zinc-hybrid battery, with the goal to
deliver a cost-effective, non-toxic and safe cell that could complement and
extend the existing lead-acid ecosystem. Lead acid batteries are made in the
majority of geographic regions around the planet and the path our team has
established has potential to match the low cost/kWh of Lithium-Ion cells made
in China.
This provides an option to extend the productivity of the lead acid ecosystem
producing zinc cells in country with a low capital entry path rather than
importing Lithium Ion. The Gelion research team has made considerable
progress over the last half year, developing approaches to address key
challenges with this technology.
While Gelion continues to incubate and develop intellectual property with this
technology, we are actively working in parallel towards securing independent
investment, with an aim to achieve an investment agreement by H2 FY25.
Board and people update
In January, we were pleased to welcome Dr Graham Cooley, as a Non-Executive
Director of the Company. Graham offers a valuable and diverse perspective to
the Board through his extensive experience in the commercialisation of
innovative technologies, knowledge of processes surrounding publicly listed
companies, and a fundamental understanding of the science behind Gelion's
products.
The Company continues to monitor its cost base and has taken further measures
with an annual estimated cost savings of c.£0.5m. These are in addition to
£1.1m cost savings delivered in FY24. The H1 FY25 measures include:
· Directors' voluntarily agreeing to a reduction in their fees
between 40% and 80% and
· a £0.4m reduction in salaries due to a reduction in headcount
(one-off costs of £0.12m) and other discretionary costs in the business.
Outlook for H2 2025
Looking ahead, I am focused on driving our strategic plan forward, realising
industry technology leadership for Gelion, and building on the generic talent
of our research teams, leveraging the acceleration made possible as a result
of acquisitions of the last 18 months. I am also focused on driving
product/market fit for the outcomes of that effort, and building on this by
developing collaborations within the supply chain that will support the path
to capital light commercialisation. In the short-term, additional capital
investment will be required for continuing development while Gelion progresses
opportunities for partnerships with strategic investors to enable realisation
of our long-term objectives. In parallel, we will continue to develop and
strengthen collaborations with key technology partners and potential
customers.
We remain well positioned to meet our performance objectives, primarily our
cycle-life and stability, with significant progress made towards realising
minimum viable product ("MVP") performance targets. Preparations are underway
to develop in-house battery prototype manufacturing capabilities. This will
leverage Australian government support (both capex and operating expenditure)
to facilitate the production of pre-pilot volumes prior to an expansion
towards licensing and contract manufacturing.
I have been incredibly encouraged by the substantial technological
advancements that have already been made to date this financial year. This
would not have been possible without the extraordinary dedication of our team,
and I would like to recognise their efforts toward driving Gelion forward. I
also thank our valued shareholders and all our partners, who are joining us in
our endeavours and our dedicated directors for their commitment, support,
availability, valuable input, and stewardship.
I strongly believe that our innovative technology and the vast expertise
present in our team provides Gelion with enormous opportunities, particularly
with the growing global recognition of the importance of Lithium Sulfur
technology and of its ability to first deliver high value niche applications
building on its high energy to weight "lightness" as a battery and then to
grow quickly alongside lithium ion toward its full potential to form a
significant share of the storage market building on its abundance and
potential for low cost. We look forward to playing a pivotal role in the
global energy transition, steering in the next-generation energy storage
solution.
John Wood
CEO
19 March 2025
Chief Financial Officer's review
Overview
H1 FY25 was a strong period for the Group, defined by major technological
progress and the strategic launch of our Integration Solutions business. This
expansion positioned us to seize key commercial opportunities, resulting in
Gelion's first £1 million order. Importantly, we achieved this while
continuing with the cost discipline and strengthening our commercial
operations.
Interim results
The H1 FY25 interim results include OXLiD's full six-month financial
performance, compared to just one month in H1 FY24 following its acquisition
on 30 November 2023.
Maintaining financial discipline remains a top priority for the management
team. Despite incorporating six months of OXLiD's operating costs in this
period, the Group's cost base in H1 FY25 remained largely stable, increasing
by just £0.1m (3.1%). On a like-for-like basis i.e. if H1 FY25 included only
one month of OXLiD's costs-the Group has effectively reduced its cost base by
approximately £0.3m, demonstrating continued financial prudence.
I have summarised the key financial highlights for the period below.
Financial performance
The Group's policy is to recognise R&D tax incentive/offsets (as other
income) at year-end. Post 30 June, management assesses its R&D activities
and associated expenditure and identifies expenses that are likely to be
eligible under the scheme/s. These are then reviewed and assessed by
independent experts and only recognised post review.
Adjusted EBITDA loss 3 (#_ftn3) for the period was £2.9m (H1 FY24 Adjusted
EBITDA loss was £3.2m). The c. 9% decrease in the Adjusted EBITDA loss was
driven by:
· Increase in total income to £0.4m (H1 FY24: £0.04m), primarily reflecting
the grant income for OXLiD through the Faraday Battery Challenge (FBC) and the
Advanced Propulsion Centre (APC);
· £0.1m increase in R&D spend, primarily driven by the inclusion of six
months of costs from OXLiD;
· A largely stable administrative costs despite increase in operations as the
Group expanded in the UK through OXLiD's acquisition, setting up Battery
Minerals to explore the Recycling IP and launching the Integration Solutions
business.
Non-recurring items relate to the expensed transaction costs incurred in
relation to the December 2024 capital raise, deferred consideration accrual
for the OXLiD acquisition and the non-cash losses incurred from the disposal
of fixed assets.
Our pro-active review of our IP portfolio in FY24 has also resulted in total
IP costs (capitalised and expensed) to reduce from £0.6m in H1 FY24 to £0.3m
H1 FY25. All these measures enable us to reduce our capital requirements while
maintaining our focus on innovation and accelerating our path to
commercialisation.
Statement of financial position and cash flows
At 31 December 2024, Gelion's current assets amounted to £11.5m (June 2024:
£13.6m), with the decrease reflecting the receipt of the R&D tax
incentive. Cash and cash equivalents of £3.5m (June 2024: £3.8m) remained
largely consistent following the successful capital raise in December 2024.
Our non-current assets and total liabilities remained largely consistent
across both periods and the Company continues to be debt-free.
Outlook
As we advance into the second half of FY25, Gelion continues to build upon the
robust foundation established in the first half. Our strategic initiatives and
technological advancements position us well for continued growth and
innovation.
Financial discipline remains a cornerstone of our strategy. We continue to
monitor our cost base and have implemented additional measures (post
period-end) expected to deliver annual savings of approximately £0.5m,
building on the £1.1m savings achieved in FY24. While additional capital
investment will be required in the short term, our prudent cost management
approach ensures efficient capital deployment, strengthening our ability to
invest in critical R&D and commercialisation efforts.
The momentum behind our near-term opportunities continues to grow as we
advance our development programs by strengthening our leadership in Li-S
technology. At the same time, we are focused on securing commercial deals for
the Integration Solutions team while strategically incubating non-core assets
to reduce capital requirement. Our commitment to technological innovation,
disciplined financial management, and sustainable growth positions us to
capitalise on these opportunities. We remain dedicated to delivering
cutting-edge energy storage solutions that meet the evolving needs of our
global customers.
Amit Gupta
CFO
19 March 2025
Consolidated Statement of Comprehensive Income
Six months ended 31 Dec 2024 Six months ended 31 Dec 2023
£'000 £'000
Notes Unaudited Unaudited
Other income 3 381 35
Total income 381 35
Administrative expenses 4 (1,442) (1,482)
Research and development expenditure 5 (1,848) (1,708)
Share-based payments expense 6 (260) (416)
Depreciation and amortisation (303) (297)
Operating loss before non-recurring items (3,472) (3,868)
Non-recurring items: 7
Acquisition related costs (78) (225)
Capital raising and ARENA grant application costs (53) (88)
Other non-recurring expenses (38) -
Total non-recurring items: 7 (169) (313)
Operating loss (3,641) (4,181)
Finance costs - (2)
Finance income 18 68
Loss on ordinary activities before taxation (3,623) (4,115)
Tax income 10 -
Loss on ordinary activities after taxation (3,613) (4,115)
Total loss for the period attributable to equity holders of the parent
Other comprehensive income:
Items that may be reclassified to profit or loss
- Exchange gains/(losses) arising on translation of foreign (303) 203
operations
Total comprehensive loss for the period attributable to equity holders of the (3,916) (3,912)
parent
Loss per share (basic and diluted) attributable to the equity holders (pence) 8 (2.60) (3.60)
The above results relate entirely to continuing activities.
The results for the six months ended 31 December 2024 include the results of
OXLiD Ltd for the full period i.e. six months whereas 31 December 2023 include
the results of OXLiD Ltd for one month i.e. from the date of acquisition i.e.
30 November 2023.
Consolidated Balance Sheet
31 Dec 2024 30 June 2024
Notes £'000 £'000
Unaudited Audited
Assets
Non-current assets
Intangible assets 6,482 6,614
Property, plant and equipment 901 1,069
Current assets
Cash and cash equivalents 3,457 3,792
Other receivables 9 631 2,118
Total Assets 11,471 13,593
Liabilities
Current liabilities
Trade and other payables 1,164 1,250
Non-current liabilities
Trade and other payables 67 55
Deferred tax liabilities 310 320
Total liabilities 1,541 1,625
Net assets 9,930 11,968
Equity
Issued capital 10 147 136
Share premium account 10 25,941 24,487
Other non-distributable reserves 10 8,988 8,877
Capital reduction reserve 10 11,194 11,194
Accumulated losses (36,340) (32,726)
Total equity 9,930 11,968
Consolidated Statement of Cash Flows
Six months ended Six months ended
31 Dec 2024 31 Dec 2023
£'000 £'000
Unaudited Unaudited
Cash flow from operating activities
Loss for the period before tax and exchange losses (3,623) (4,115)
Adjustments for:
- depreciation & amortisation 303 297
- net finance loss / (income) (18) (73)
- impairment of intangible assets 1 16
- loss on disposal of fixed assets 31 -
- share-based payments expense 260 416
- changes in working capital 1,290 2,050
Net cash used in operating activities (1,756) (1,409)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired - (1,076)
Other investments - escrow account 133 (133)
Purchase of intangible assets (158) (626)
Purchase of tangible property, plant and equipment (63) (405)
Interest received 17 72
Net cash used in investing activities (71) (2,168)
Cash flows from financing activities
Proceeds from issue of shares 1,710 4,100
Transaction costs in relation to issue of shares (245) (348)
Prepaid equity 155 -
Repayment of leasing liabilities (8) (25)
Net cash generated from / (used in) financing activities 1,612 3,727
Net increase / (decrease) in cash held (215) 149
Cash and cash equivalents at beginning of reporting period 3,792 7,268
Effect of exchange rate changes (120) 34
Cash and cash equivalents at end of reporting period 3,457 7,451
Consolidated Statement of Changes in Equity
Share capital Share premium Accumulated losses Capital reduction reserve Other non-distributable reserves Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 (Audited) 108 20,752 (24,778) 11,194 5,328 12,604
Total comprehensive loss for the period* - - (4,115) - 203 (3,912)
Contributions by and distributions to owners:
Merger relief reserve (fair value of shares issued on acquisition) 11 - - - 2,512 2,523
Share-based payment charge - - - - 416 416
Shares issued during the period 17 4,083 - - - 4,100
Cost of shares issued - (348) - - - (348)
Balance at 31 Dec 2023 (Unaudited) 136 24,487 (28,897) 11,194 8,461 15,382
Balance at 1 Jan 2024 (Unaudited) 136 24,487 (28,897) 11,194 8,461 15,382
Total comprehensive loss for the period - - (3,833) - (230) (4,063)
Contributions by and distributions to owners:
Merger relief reserve (fair value of shares issued on acquisition) - - - - 78 78
Share-based payment charge - - - - 570 570
Balance at 30 June 2024 (Audited) 136 24,487 (32,726) 11,194 8,877 11,968
Balance at 1 Jul 2024 136 24,487 (32,726) 11,194 8,877 11,968
(Audited)
Total comprehensive loss for the period - - (3,613) - (303) (3,916)
Contributions by and distributions to owners:
Prepaid equity (equity paid in advance) - - - - 155 155
Share-based payment charge - - - - 260 260
Shares issued during the period 11 1,699 - - - 1,710
Cost of shares issued - (245) - - - (245)
Balance at 31 Dec 2024 (Unaudited) 147 25,941 (36,340) 11,194 8,988 9,930
Notes to The Consolidated Financial Statements
1. General Information
Gelion Plc ('Gelion' or the 'Company') is a 100% owner of:
· Gelion Technologies Pty Ltd, an Australian subsidiary that
conducts research and development in respect of an innovative battery system
and associated industrial design and manufacturing; and
· OXLiD Ltd, a UK subsidiary which is involved in the research and
development of lithium-sulfur battery technology; and
· Battery Minerals Ltd, a UK subsidiary which is involved in the
recycling of lithium-ion battery technology.
Gelion is a public limited company, limited by shares, incorporated and
domiciled in England and Wales. The Company was incorporated on 26 September
2015. The registered office of the Company is at c/o Armstrong, Level 4 LDN:W,
3 Noble Street London EC2V 7EE. The registered company number is 09796512.
Gelion Plc was originally incorporated as Gelion UK Ltd. On 12 November 2021,
Gelion UK Ltd was re-registered as a public limited company under the
Companies Act and its name was changed to Gelion plc.
The Board, Directors and management referred to in this document refers to the
Board, Directors and management of Gelion.
2. Accounting Policies
2.1 Basis of preparation
The interim consolidated financial statements for the period 1 July 2024 to 31
December 2024 are unaudited. The financial statements also incorporate the
unaudited figures for the interim period 1 July 2023 to 31 December 2023 and
the audited figures for the year ended 30 June 2024 (where applicable). These
interim consolidated financial statements have been prepared in accordance
with IAS 34 Interim Financial Reporting. They do not include all disclosures
that would otherwise be required in a complete set of financial statements and
should be read in conjunction with the 2024 annual report.
These interim financial statements are presented in Great British Pounds (GBP)
unless otherwise stated, which is the Company's presentational currency and
the parent company's functional currency. Amounts are rounded to the nearest
thousand, unless otherwise stated. The functional currency of the subsidiaries
are both Great British Pounds (GBP) and Australian Dollars (AUD). Some
numerical figures included in this Interim Report have been subject to
rounding adjustments.
2.2 Going Concern
The interim financial statements have been prepared on a going concern basis
which assumes that the Group and Company will have sufficient funds available
to enable it to continue to trade for the foreseeable future being a period of
at least 12 months from the date of approval of these financial statements. In
making their assessment that this assumption is correct, the Directors have
undertaken an in-depth review of the business, its current prospects, and cash
resources as set out below.
The Company is a holding entity and therefore the going concern assessment for
the Company was performed as part of the Group's assessment.
As at 31 December 2024, the Group had cash in bank of £3.5 million.
The Directors have reviewed a range of potential cash flow forecasts for the
14-month period from 1 January 2025 to 28 February 2026 (the "Period")
including actual results subsequent to the period ended 31 December 2024 and
reasonable possible downside scenarios.
The base case cash flow forecast includes the following assumptions for the
Period:
· net cash out flows of c. £6.0 million for the Period which
includes:
o an estimated R&D tax incentive receipt of £1.3 million for FY2025
(July 2024 to June 2025) expected to be received in September/ October 2025;
o positive gross margin from the Integration Solutions first sale;
o receipt of secured grant funding in the UK;
o ongoing R&D, general and administrative costs of the Group;
o payment for the remaining deferred consideration c. £265k in relation to
the OXLiD acquisition;
o additional cost control measures that were implemented post 31 December
2024 e.g. reduction in headcount, Directors' fee and certain other
discretionary costs estimated to reduce total costs by 7.6%.
Conclusion
The base case forecast includes a total net cash outflow over the Period of
£6.0 million. The Directors' have also considered a plausible downside
scenario which includes a 10% contingency on a subset of total costs
(excluding expenses which are largely fixed or controllable in nature e.g.
lease expenses, employee expenses etc.) resulting in a total net cash flow of
£6.1 million.
The forecast indicates that under both scenarios, the Group will need to raise
additional funds by June 2025. As a result, the Group is reliant on securing
additional funding which is not guaranteed.
The Directors also note that the Company recently concluded a capital raise of
£1.86m in December 2024/January 2025, giving them confidence that the Company
can attract additional investment. Furthermore, the Board has confidence that
based on the prospects of the business and their previous experience in
raising equity finance, the Company can attract additional investment as
required in the future.
The Board acknowledges that this funding is not, at the present time, in
place. Accordingly, the Board acknowledges that the need for additional
funding represents a material uncertainty which may cast significant doubt on
the ability of the Group to continue as a going concern and, therefore, that
it may be unable to realise its assets and discharge its liabilities in the
normal course of business. The financial statements do not include any
adjustments that would result if the Group was unable to continue as a going
concern.
2.3 Earnings per share
Basic earnings/loss per share
Basic earnings/loss per share is calculated by dividing:
• the profit or loss attributable to owners of Gelion Plc, excluding
any costs of servicing equity other than Ordinary Shares; by
• the weighted average number of Ordinary Shares outstanding during
the period, adjusted for bonus elements in Ordinary Shares issued during the
period.
Diluted earnings/loss per share
Diluted earnings/loss per share adjusts the figures used in the determination
of basic earnings/loss per share to take into account:
• the after-income tax effect of interest and other financing
costs associated with dilutive potential Ordinary Shares; and
• the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential Ordinary Shares.
2.4 Share-based payments
The Group provides benefits to its employees in the form of share-based
payments, whereby employees render services in exchange for shares or rights
over shares (equity-settled transactions) in the parent entity.
The cost of these equity-settled transactions with employees is measured by
reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined using a Black- Scholes model.
This calculation is completed by the parent entity.
The cost of these equity-settled transactions is recognised as an expense,
with a corresponding increase in equity, over the period in which the service
conditions are fulfilled (the vesting period), ending on the date on which the
relevant employees become fully entitled to the award (the vesting date).
At each subsequent reporting date until vesting, the cumulative charge to
profit and loss is the product of:
• the grant date fair value of the award;
• the current best estimate of the number of awards that will
vest;
• the expired portion of the vesting period; and
• the removal of any fair value attributable to share options that
have contractually lapsed, expired, cancelled or forfeited.
The charge to profit and loss for the period is the cumulative amount as
calculated above less the amounts already charged in previous periods. There
is a corresponding entry to the share-based payment reserve in equity.
If a share-based payment arrangement is modified, the minimum expense
recognised over the vesting period is the original fair value. If the
modification increases fair value, the additional fair value is recognised
over the remaining vesting period.
2.5 Non-Recurring Items
The Group considers certain unusual or infrequent items that either because of
their size or their nature, or relevance to the business as are non-recurring
and disclose separately to report the underlying performance of the business.
For an item to be considered as a separate item, it must initially meet at
least one of the following criteria:
• It is a significant item, which may cross more than one
accounting period.
• It has been directly incurred as a result of either an
acquisition / divestment or funding related or arises from a major business
change.
• It is unusual in nature, e.g. outside the normal course of
business.
If an item meets at least one of the criteria, the Board, through the Audit
and Risk Committee, then exercises judgement as to whether the item should be
classified as an allowable adjustment to IFRS performance measures and
disclosed separately.
2.6 Foreign currency translation
The functional currency of each company in the Group is that of the primary
economic environment in which the entity operates. Monetary assets and
liabilities denominated in foreign currencies are translated into GBP at the
rates of exchange ruling at the period end. Transactions in foreign currencies
are recorded at the rate ruling at the date of the transaction.
All differences are taken to the Statement of Comprehensive Income. On
consolidation, the assets and liabilities of the Group entities that have a
functional currency different to the presentational currency are translated
into GBP at the closing rate at the date of the Statement of Financial
Position. Income and expenses for each statement of profit or loss are
translated at average exchange rates for the period. Exchange differences are
recognised in other comprehensive income and accumulated in a foreign exchange
translation reserve.
2.7 Critical accounting judgements and key sources of
estimation uncertainty
R&D tax incentives
From 1 July 2011, the Australian Taxation Office has provided a tax incentive,
in the form of a
refundable tax offset of 43.5%, for eligible research and development
expenditure.
Both OXLiD and Battery Minerals are eligible to claim Research and Development
Expenditure Credit (RDEC) under the SMEs program.
The Group does not recognise a receivable for R&D tax incentive or the
RDEC at half-year and recognises this at the year-end only based on total
eligible expenditure incurred during the year. As such, no R&D tax
incentive receivable has been recognised for the period ended 31 December
2024.
3. Other income
Six months ended 31 Dec 2024 Six months ended 31 Dec 2023
£'000
£'000
Unaudited Unaudited
Grant income 381 35
Total other income 381 35
Grant income relates to approved grant funding for OXLiD and Battery Minerals
through the Faraday Battery Challenge (FBC) and the Advanced Propulsion Centre
(APC) programs. The grant funding is recognised on an accrual basis and are
claimed either on a monthly or a quarterly basis with the funds received in
the month after the claim submission.
4. Administrative Expenditure
Administrative expenditure includes personnel and related costs (including
salaries, benefits and payroll tax) and costs associated with external
consultancy services.
5. R&D Expenditure
R&D expenditure includes personnel and related costs (including salaries,
benefits and payroll tax) and costs associated with product research, design
and development.
6. Share-Based Payments
The Directors recognise the role of the Group's staff in contributing to its
overall success and the importance of the Group's ability to incentivise and
motivate its employees. Therefore, the Directors believe that certain
employees should be given the opportunity to participate and take a financial
interest in the success of the Company, aligning employee interests with
shareholders and Company goals.
In July 2022, the Board introduced a new Share Option Plan. The plan is
designed to motivate and incentivise key talent to assist the Group in
achieving its strategic aims whilst remaining consistent with its tolerance
for risk, all set within delegated limits set out during the recent IPO.
These options are structured as nominal cost options. The options will
normally vest in three equal tranches over three years, subject to continued
employment.
On 13 December 2023, 1,637,629 options were granted that will vest in three
equal tranches, the first anniversary is 31 August 2024, followed by annual
vesting on 31 August 2025 and 31 August 2026. The options were granted with
the exercise price of 0.1 pence and will be exercisable up to the tenth
anniversary of the grant.
On 20 December 2023, 949,751 options were granted that have an 18 month
vesting period and will vest in full on 31 May 2025. The options were granted
with the exercise price of 0.1 pence and will be exercisable up to the tenth
anniversary of the grant.
On 5 February 2024, 200,000 options were granted to Louis Adriaenssens that
have a 12-month vesting period and will vest in full on 4 February 2025. The
options were granted with the exercise price of 0.1 pence and will be
exercisable up to the fifth anniversary date.
For options granted to groups of employees, the estimated number of options
expected to vest has been adjusted downward based on the actual average
attrition rate of 23%. The share-based payment expense for unvested options is
determined by the probability of number of options likely to vest; as a
result, the number of unvested options is reduced to account for the average
attrition rate.
Six months ended 31 Dec 2024 Six months ended 31 Dec 2023
£'000
£'000
Unaudited Unaudited
Share-based payment expense recognised 260 416
Total share-based payment expense 260 416
Summary of movements in awards:
New Share Option Plan 2021 and prior Original Share Option Plan Weighted average exercise price
'000s Number £
'000s
Outstanding at 1 July 2023 (Audited) 2,896 5,583 0.21
Granted 2,587 - 0.00
Forfeited (29) - 0.00
Exercised (12) - 0.00
Outstanding at 31 December 2023 (Unaudited) 5,442 5,583 0.16
Exercisable at 31 December 2023 (Unaudited) 1,674 5,583 0.24
Granted 200 - 0.00
Forfeited / Cancelled (86) - 0.00
Exercised - - 0.00
Outstanding at 30 June 2024 (Audited) 5,556 5,583 0.16
Exercisable at 30 June 2024 (Audited) 1,674 5,583 0.24
Granted - - -
Forfeited / Cancelled - - -
Exercised - - -
Outstanding at 31 December 2024 (Unaudited) 5,556 5,583 0.16
Exercisable at 31 December 2024 (Unaudited) 2,788 5,583 0.21
The range of exercise prices for options outstanding at 31 December 2024 was
£0.001 to £1.45 (2023: £0.001 to £1.45).
The weighted average remaining contractual life for the share options
outstanding as at 31 December 2024 was 5.05 years (2023: 5.98 years).
Of the total number of options outstanding at 31 December 2024, 8,371,128 (31
December 2023: 7,256,964) had vested and were exercisable.
7. Non-Recurring Items
Six months ended 31 Dec 2024 Six months ended 31 Dec 2023
£'000
£'000
Unaudited Unaudited
Acquisition related costs 78 225
Capital raising costs 33 88
ARENA grant application costs 20 -
Loss on disposal of fixed assets 31 -
Agent fees relating to new premises 7 -
Total non-recurring items 169 313
Non-recurring costs in the 6 month period to 31 December 24 include one-off
capital raise related expenses as well as deferred consideration relating to
the acquisition of OXLiD Ltd. These have been separately disclosed to assist
the user of the financial information to understand and compare the underlying
results of the Company.
8. Loss Per Share
Six months ended Six months ended
31 Dec 2024 31 Dec 2023
Unaudited Unaudited
Loss after tax £3,613,000 £4,115,000
Weighted average number of shares (number) 136,446,587 113,792,426
Loss per share (pence) 2.6p 3.6p
The calculation of the loss per share is based on the loss for the financial
period after taxation of £3,613,000 (2023: £4,115,000) and on the weighted
average of 136,446,587 (2023: 113,792,426) Ordinary Shares in issue during the
period.
During the 6 month period to 31 December 2024, the parent company issued
11,397,837 shares as part of the capital raise in December 2024.
There were 11,139,221 share options outstanding as of 31 December 2024 (30
June 2024: 11,139,221). The impact of these options would be to reduce the
diluted loss per share and therefore they are antidilutive. Hence, the diluted
loss per share reported for the periods under review is the same as the
earnings per share.
9. Other receivables
As at 31 Dec 2024 As at 30 June 2024
Unaudited Audited
£'000 £'000
R&D tax incentive 57 1,614
Grant income 179 -
Prepayments 351 137
VAT / GST receivable 31 -
Restricted cash - escrow - 133
Other debtors 13 234
Total other receivables 631 2,118
R&D tax incentives are granted by the Australian Taxation Office and the
HMRC in the form of tax offsets. The key judgements applied in the recognition
of this receivable are detailed in note 2.7. The R&D tax incentive
receivable at 31 December 24 relates to HMRC R&D tax offset for eligible
expenditure for the period ending 30 June 24. Grant income relates to
receivables in OXLiD for grant funding in the UK, obtained through the Faraday
Battery Challenge (FBC) and the Advanced Propulsion Centre (APC).
The Directors consider that the carrying value of other receivables
approximates to their fair value.
10. Issued Capital and Reserves
Share capital and premium
Number of shares Share Share
on issue
capital premium
Ref. (#) £'000 £'000
Balance as at 1 July 2023 (Audited) 108,407,750 108 20,752
Shares issued during the period a 27,590,709 28 4,083
Cost of shares issued b - - (348)
Balance as at 31 Dec 2023 (Unaudited) 135,998,459 136 24,487
Exercise of share options 12,144 - -
Balance as at 30 June 2024 (Audited) 136,010,603 136 24,487
Shares issued during the period c 11,397,837 11 1,699
Cost of shares issued d - - (245)
Balance as at 31 Dec 2024 (Unaudited) 147,408,440 147 25,941
a) On 23 November 2023, 17,082,127 new ordinary shares of £0.001 have been
issued at a price of 24 pence per share. On 29 November 2023, 10,508,582 new
ordinary shares of £0.001 have been issued as part of consideration for
acquisition of OXLiD Ltd.
b) Transaction costs incurred in the issuing of shares in the period ended 31
December 2023 of £436,000 of which £348,000 was offset against share premium
and £88,000 was expensed.
c) On 24 December 2024, 11,397,837 new ordinary shares of £0.001 have been
issued at a price of 15 pence per share.
d) Transaction costs incurred in the issuing of shares in the period ended 31
December 2024 of £278,000 of which £245,000 was offset against share premium
and £33,000 was expensed.
Nature and purpose of other reserves
Other reserves
- Share-based payments reserve
The share-based payments reserve is used to recognise the value of
equity-settled share-based payments provided to employees, including key
management personnel, as part of their remuneration. Refer to note 6 for
further details of these plans.
- Foreign currency translation reserve
The subsidiary's functional currency is AUD and therefore on consolidation a
foreign exchange gain or loss on translation of net assets is recognised
through other comprehensive income at each reporting date. These gains or
losses are accumulated in a foreign currency translation reserve.
- Capital reduction reserve
Immediately following the Second Bonus Issue in 2021, the balance standing to
the credit of the share premium account was cancelled and the amount so
cancelled was credited to a distributable reserve called the 'capital
reduction reserve'.
- Merger relief reserve
On 29(th) November 2023, The Company completed the acquisition of 100% of
ordinary shares of OXLiD Ltd. The transaction consideration involved a
combination of cash and issuance of 10,508,582 ordinary shares in Gelion. The
investment was recognised at fair value, and the excess of the fair value over
the nominal value of the issued share capital is recorded within equity as a
merger relief reserve.
- Prepaid equity reserve
The prepaid equity reserve is used to recognise capital paid in advance of
shares issued. The Directors participated in the December 2024 capital raise
and £155,000 was received by the parent as capital paid in advance of shares
issued prior to 31 December 2024. The shares were issued on 8 January 2025 and
this contribution has therefore been recognised as prepaid equity reserve.
Other non-distributable reserves:
Share-based payment reserve Foreign currency translation reserve Merger relief reserve Prepaid Equity Total other reserves
£'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 (Audited) 5,511 (183) - - 5,328
Foreign currency translation reserve movement - 203 - - 203
Share-based payment charge 416 - - - 416
Merger relief reserve (fair value of shares issued on acquisition) - - 2,512 - 2,512
Balance at 31 December 2023 (Unaudited) 5,927 20 2,512 - 8,459
Foreign currency translation reserve movement - (230) - - (230)
Share-based payment charge 570 - - - 570
Merger relief reserve (fair value of shares issued on acquisition) - - 78 - 78
Balance at 30 June 2024 (Audited) 6,497 (210) 2,590 - 8,877
Foreign currency translation reserve movement - (303) - - (303)
Share-based payment charge 260 - - - 260
Equity paid in advance of share issue - - - 155 155
Balance at 31 December 2024 (Unaudited) 6,757 (513) 2,590 155 8,988
11. Events subsequent to period end
On 3 January 2025, the company announced that Directors had participated in a
capital raise and were issued, in aggregate, 1,033,334 new ordinary shares at
a price of 15 pence per share, raising gross proceeds of £155,000.
12. Alternative Performance Measure (APM)
The Group uses the following non-IFRS performance measure to provide
additional insight into financial performance. This measure supplements, but
does not replace, IFRS reporting and may not be directly comparable to similar
measures used by other companies.
Alternative Performance Measures (APMs) should be viewed as supplementary
information only and not in isolation.
When determining whether an item qualifies as an allowable adjustment to IFRS
measures, the Group considers items that are significant either due to their
size or nature, and that are non-recurring. To qualify as an allowable
adjustment, an item must meet at least one of the following criteria:
· It is a significant item, which may span more than one accounting
period.
· It is directly incurred as a result of an acquisition,
divestment, or arises from a major business change.
· It is unusual in nature, occurring outside the normal course of
business.
If an item meets any of these criteria, the Board, through the Audit and Risk
Committee, exercises judgment on whether it should be classified as an
allowable adjustment to IFRS performance measures.
Allowable Adjustments
The following have been defined as allowable adjustments:
a) Acquisition-related costs - Costs directly incurred in relation to
acquisitions.
b) Capital raise and ARENA grant application costs - Costs associated
with capital raising and ARENA grant applications.
c) Other non-recurring costs - Includes losses on disposal of fixed
assets, write-offs of IP intangibles, and agent fees related to new premises.
d) Share-based payments expense - non-cash expenses relating to employee
incentive schemes.
Purpose and Use
This measure provides a consistent view of underlying results derived from
core business activities. It is widely used by securities analysts, investors,
and other stakeholders to evaluate financial performance and compare
performance across periods.
Management closely monitors this measure to assess the Group's operating
performance, support financial and strategic decision-making, and better
understand underlying trends on a comparable, period-on-period basis.
Measure
Adjusted EBITDA loss is calculated by excluding certain costs (as detailed in
the table) from Operating loss:
Reconciliation:
Operating loss to Adjusted EBITDA loss
Six months ended Six months ended
31 Dec 2024 31 Dec 2023
£'000 £'000
Unaudited Unaudited
Operating loss (as reported) (3,641) (4,181)
Adjustments
Depreciation and amortisation 303 297
Share-based payments expense 260 416
Acquisition related costs 78 225
Capital raising and ARENA grant application costs 53 88
Other non-recurring expenses 38 -
Adjusted EBITDA loss (2,909) (3,155)
1 (#_ftnref1) Adjusted EBITDA loss is a non-statutory measure and a
reconciliation to Operating loss has been disclosed in note 12.
2 (#_ftnref2) Cost savings of 7.6% has been calculated using H1 FY25 as the
cost base, including R&D and administrative expenses. Since this cost base
represents a half-year period, the cost savings were also proportionally
adjusted.
3 (#_ftnref3) Adjusted EBITDA loss is a non-statutory measure and a
reconciliation to Operating loss has been disclosed in note 12.
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