REG - Haydale Graphene Ind - Interim Results
01/03/2023 07:01
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RNS Number : 3942R Haydale Graphene Industries PLC 01 March 2023
For immediate release 1 March 2023
Haydale Graphene Industries plc
('Haydale', the 'Company', or the 'Group')
Interim Results
Haydale (AIM: HAYD), the global technology solutions group, announces its
unaudited interim results for the six months ended 31 December 2022 (the
'Period' or 'H1 FY2023').
Financial Highlights
· Group Revenues increased by 50% to £1.78 million (H1 FY2022
£1.19 million);
· Adjusted Operational expenses of £3.02 million (H1 FY2022:
£2.55 million) reflecting prior year investment in capability;
· Adjusted operating loss for the Period of £1.89 million (H1
FY2022 £1.75 million); and
· Cash at Period end of £2.97million (31 December 2021: £3.84
million).
· Successful fund raise of £5.14 million (Net) in September
2022.
Operational Highlights
· Sales of biomedical inks achieved in Europe with advanced trials
being conducted by several parties which include electronic blood glucose
reader compatibility tests.
· One tonne of functionalised graphene powder supplied to leading
cycle tyre manufacturer Vittoria Spa with more orders anticipated in the
current period.
· Strong growth in US revenues with an anticipated rebound in
Silicon Carbide powder sales alongside expanding sales of blanks and
finished tools;
· Developed a prototype underfloor heating solution with the
potential to replace higher voltage electric or water based floor heating
systems in residential buildings.
Commenting on the interim results, Keith Broadbent, Chief Executive Officer of
Haydale, said:
"We are pleased to see revenues increase by 50% in the Period and currently
remain on track to meet expectations for the financial year. Our operational
focus remains on those products that should deliver revenue growth within the
short to medium term. This strategy is supported by the Group's installed
manufacturing capacity that can deliver functionalised nanomaterials to our
customers on an industrial scale at a consistent quality and at a market
acceptable price. We believe that the patented HDPlas™ plasma treatment
provides a superior, highly tuneable and environmentally friendlier solution
to the graphene challenge than other processes and this is being validated by
our customers.
We are also pleased to see the rebound in our US sales and expect to see
continued growth in our cutting tool business in the North American automotive
and aerospace sectors in H2 FY2023. The continued progress of our US
business will support reduced monthly cash burn and may create the opportunity
to secure additional capital facilities for the Group".
For further information:
Haydale Graphene Industries plc
Keith Broadbent, CEO Tel: +44 (0) 1269 842 946
Mark Chapman, CFO
www.haydale.com (http://www.haydale.com)
finnCap (Nominated Adviser & Broker)
Julian Blunt/Edward Whiley, Corporate Finance
Andrew Burdis, ECM
Tel: +44 (0) 20 7220 0500
Notes to Editors
Haydale is a global technologies group and service provider that facilitates
the integration of graphene and other nanomaterials into the next generation
of industrial materials and commercial technologies. With expertise in
graphene, other nanomaterials and Silicon Carbide, Haydale is able to deliver
improvements in electrical, thermal and mechanical properties, Haydale has
been granted patents for its technologies in Europe, USA, Australia, Japan and
China and operates from five sites in the UK, USA and the Far East. For more
information please visit: www.haydale.com (http://www.haydale.com) or Twitter:
@haydalegraphene
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', ''will'' or the
negative of those, variations or comparable expressions, including references
to assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations, performance,
future capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the Directors'
current beliefs and assumptions and are based on information currently
available to the Directors.
A number of factors could cause actual results to differ materially from the
results discussed in the forward-looking statements including risks associated
with vulnerability to general economic and business conditions, competition,
environmental and other regulatory changes, actions by governmental
authorities, the availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which are beyond
the control of the Company. Although any forward looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions, the Company cannot assure investors that actual
results will be consistent with such forward looking statements.
Accordingly, readers are cautioned not to place undue reliance on forward
looking statements. Subject to any continuing obligations under applicable
law or any relevant AIM Rule requirements, in providing this information the
Company does not undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in events,
conditions or circumstances on which any such statement is based.
Chief Executive's Report
Overview
The Group has seen solid progress in its core graphene and nano particle
operations in the UK supported by a strong rebound in its US sales.
Within the graphene and nano materials side of our operations, we have
continued to concentrate on our focus products, those that we believe are most
likely to deliver revenue within the short to medium term. Specific
development of our core ink, elastomers and composite products has also
resulted in further enhancement of our core functionalisation technology which
has led to several new patent applications being submitted in the Period.
We have continued the optimisation process for the HT1400 industrial scale
plasma reactor that was commissioned in April 2022. Our installed capacity
has, amongst other customers, proved invaluable in our supply of one tonne of
functionalised nano material for Vittoria Spa in the Period.
Revenue increased by 50% in the Period to £1.78 million (H1 FY2022 £1.19
million) driven by a strong recovery at the Group's US operation. Silicon
Carbide whisker ("SiC") sales to a long term customer in East Asia recommenced
after a hiatus of nearly 18 months and were supported by expanding sales of
blanks and finished tools (together "Tools").
The focus on improving operational capability alongside the increase in
production capacity led to strategic investment in the wider Haydale team in
FY 2022. In H1 FY2023 we are seeing the full year effect of this with a
18.6% increase in Adjusted Administrative expenses in the Period. The
Group's adjusted operating loss for the Period was £1.89 million (H1 FY2022
£1.75 million).
Commercial Operations
UK
The UK has made consistent progress towards commercialising its proprietary
technology in the Period and has continued to focus on the inks (biosensor,
heater and conductive), elastomers and composites that we believe have a
shorter commercial time horizon and can deliver a sustainable financial
return.
Inks
Our biomedical ink products are gathering momentum, and we have secured small
scale sales to the UK based subsidiary of a global leader in the glucose
monitoring and diabetes management field, as well as several customers in East
Asia. We are pleased that our functionalised graphene inks have demonstrated
consistent performance uplifts against existing carbon based inks in initial
trials. Customers are now performing advanced testing and are looking to
ensure compatibility with their blood glucose readers.
For context, the global blood glucose test strips market size was $12.31
billion in 2021 and is poised to grow at a CAGR of 6.2% to reach $21.16
billion by 2030 1 . Population aging, obesity, and unhealthy lifestyle are the
main factors contributing to this market growth. Small disposable plastic
blood glucose test strips play a critical role in assisting people to monitor
and control their diabetes.
Academic and commercial laboratories have shown that the electrically
conductive properties of our HDPlas® functionalised graphene, improved the
accuracy and responsiveness of the ink within the test strips when compared to
the existing products on the market. Furthermore, our next generation
product uses less metallics and will be environmentally friendlier than
current inks.
Haydale has the installed capacity to produce circa 25 tonnes of biomedical
inks per annum to a consistent and high quality standard, and at a competitive
cost versus current suppliers. We anticipate that capacity could be
substantially increased, as required, with a projected return on future
investment of under one year.
Our biomedical inks are also potentially capable of detecting a wide variety
of other conditions. Our work with the Wales Kidney Research Unit at Cardiff
University on a urinary electrochemical sensor has the potential to replace
costly and invasive PCR based methods and to enable more timely
intervention. The diagnostic potential of our functionalised powder inks,
utilising microRNA to detect a wide range of conditions, has been recognised
by The Engineer, a respected magazine focusing on technological innovation,
which shortlisted the parties in the 2023 'Collaborate to Innovate Awards'
category.
Haydale has been working with Cadent to develop graphene based heater inks to
generate low power hot water in off grid situations. This work programme has
now advanced to the development of a demonstrator, and the parties are
discussing further projects.
Haydale has also been working to enhance the conductivity and printability of
its heater inks for use in caravans and other mobile platforms and underfloor
heating situations. The Group has recently developed a prototype distributed
heating solution with the potential to replace high voltage electric or water
based under floor heating systems in residential buildings. Haydale heater
ink can be printed onto various substrates and using low voltage battery or
solar energy could, when fully developed, effectively heat domestic buildings
as part of a wider sustainable energy ecosystem. We have received interest
from a number of energy utilities and are currently investigating the cost of
developing a prototype for field testing, with a view to having a commercial
offering with a certified energy rating value. Against the backdrop of the
global energy crisis, discussions on this potentially ground breaking
technology continue apace.
Elastomers
Through several feasibility studies, Haydale demonstrated the capacity of
functionalised masterbatches to deliver enhanced elastomer performance. Our
work in this field has kickstarted our collaboration with Vittoria Spa
("Vittoria"), the leading Italian bicycle tyre manufacturer which has
pioneered the use of graphene in high performance tyres. Haydale's
functionalised nanomaterial has been proven to create substantial improvements
in grip, puncture resistance, rolling drag and durability. During the period
the Group was excited to continue our collaboration by supplying one tonne of
functionalised graphene nanomaterials to Vittoria. The parties expect more
orders to follow in H2 FY2023 as Vittoria expand the use of the material to
other high performance tyre offerings. The applicability of this technology
to the wider tyre market and also to other sectors is being explored with the
anti-static non marking properties of our functionalised elastomer products
receiving interest from a supplier to the medical sector.
Composites
The Group recently announced its new graphene enhanced epoxy pre-preg tooling
material. A two year field trial at Prodrive, the tier 1 automotive supplier,
demonstrated that our material delivered extended tooling life, improved
surface quality and increased thermal conductivity. The prolonged tooling
life should deliver substantial cost savings to users mainly in the automotive
and aerospace sectors, with the move to the new tools requiring no process
adjustments. The product was formally launched in H2 FY2023 with our
graphene masterbatch being used to manufacture stronger and lighter composite
sea kayaks for Norwegian paddle sport brand, Norse Kayaks.
Other UK
Haydale has continued to collaborate with High Tech Systems Ltd on the
development, 'real world' testing and optimisation of its boron nitride
enhanced thermal fluid, Hi-Therm™. By enhancing the thermodynamic
properties of water, Hi-Therm™ has the potential to reduce the energy
required to heat buildings and could demonstrate the positive impact that
thermally efficient and effectively dispersed nanomaterials could have on
reducing energy use.
North America
Revenue at our US SiC and tool manufacturing facility has rebounded in the
Period. The Group has recommenced sales with a key customer in East Asia after
an 18 month post pandemic hiatus and has also seen meaningful sales of its
Tools in the Period.
We reported that our North American operation had started to see demand for
its Tools revive in the last quarter of FY2022. We are pleased to report
that this momentum has increased and during the Period we have added a number
of major customers and are now seeing consistent monthly growth in Tools
supplied into the North American automotive and aerospace sector. We have
signed distribution contracts covering the important North-East Corridor and
the West Coast and these distributors are working alongside the sales team to
promote our Tools. We are confident that we will be able to continue to
increase both our user base and the range of tooling geometries that we are
supplying to existing customers. We also consider that the wider
developments within the ceramic cutting tool sector should allow us to build a
significant tooling business that will broaden our strategic options for this
unit.
During the pandemic we stated that we were to look to diversify beyond our
traditional markets, and in the last two years have signed two non-exclusive
sales agreements with Chinese companies and entered into less formal trading
arrangements with several others. Whilst progress has been slower than
expected, with the recent relaxation in China's zero covid policy, we
anticipate more sales to China in the medium term.
The Company agreed an exclusive UK distribution contract for CeramycGuard™
in 2020. Haydale continues to work closely with a number of UK water
utilities and wider concrete infrastructure parties and was pleased to
recently announce a trial by United Utilities at its Oldham wastewater
facility. We are hopeful that the six month trial will demonstrate the long
term cost savings that the service life extension shown by CeramycGuard™ can
deliver to concrete assets. We expected to receive DWI 31 (Clean Water)
Accreditation during the Period, but due to delays outside of our control we
are still awaiting the final evaluation, and now anticipate a decision during
the current period. Whilst clean water accreditation is important in securing
sales of CeramycGuard™, we continue to focus on the substantial wider market
which includes sewage treatment facilities, bridges, car parks and other
concrete structures.
Asia Pacific "APAC"
Our Thailand business unit is working on some exciting research projects, one
of which is looking at the commercial feasibility of using functionalisation
to upcycle waste products for use in battery and other applications. Further
to the letter of intent with Graphene Creations, an associate company of
Vittoria, referred to in our Annual Report released in October 2022, we are
still assessing the merits of combining our technical knowledge and resources
with their contacts within the Thai industrial community, and we anticipate
that the parties will reach a decision on whether to proceed shortly.
We have made positive progress in South Korea and are working with several
parties at an early product development stage. We anticipate that some of
these collaborations will transition into material supply contracts in the
current period and, specifically that our earlier work with NeoEnpla on their
biodegradable barrier plastic bags suitable for the food industry, will afford
more opportunities in the medium term. iCraft has now confirmed that it will
refocus on its core operations and we remain in constructive dialogue with
them in respect of their contractual obligations.
Grant Funded Projects
Haydale has been working on a number of grant funded projects in the Period.
We highlight two projects that are focused on reducing the barriers to wider
commercial adoption of graphene and which recognise our expertise in the
characterisation of graphene.
- Iso GScope - a project led by the National Physical Laboratory,
aims to validate and standardise measurement and characterisation methods for
graphene in powders and liquid dispersions used in industrial applications.
By overcoming the "what is my material?" barrier by creating
well-characterised graphene structures, the project should facilitate the
wider adoption of graphene by industry; and
- Accords - an Horizon Europe project, with Haydale playing a key
role in developing imaging techniques to characterise 2D materials to make the
process of selection easier. This is the first time that an extensive
programme will look to standardise the characterisation of 2D materials with
the aim of adoption by standardisation bodies such as ISO. This will also be
an important milestone in defining the safe use of nano materials as industry
continues to adopt this technology at speed.
As previously set out, the Company only seeks to focus on grant projects that
have a clear commercial pathway or add significantly to the Group's knowledge
bank. The projects detailed are practical examples of this ethos as are the
other grants and awards that we have worked on in the Period.
Business Investment
Haydale made a significant investment in FY2022 in expanding its manufacturing
capacity. The new HT1400 plasma reactor, alongside ancillary equipment, has
significantly increased the Company's functionalisation and ink handling
capacity. During the Period Haydale has continued to optimise the new
reactor and the technologies, such as liquid dosing, which the new reactor has
enabled. As signposted, full year capital expenditure will be significantly
less than the prior year and we anticipate that spend will remain muted for
the medium term.
In tandem with the investment in physical capacity, the Company has focussed
on raising the operational capability across our sites. This process
commenced during FY2022 and identified the need for additional skills and
resources in key functional areas and the requirement for more robust
operating systems to provide a solid foundation for growth. The Directors
are pleased that this investment is now being rewarded with the increase in US
sales, and also the positive feedback from customers who are seeking graphene
partners who can meet their volume requirements without compromising quality
assurance standards. Although this investment increased our overheads in
FY2022 and also in this Period, the strategy has been both necessary and, with
respect to the US operation, has started to bear fruit. We do anticipate
that the operational capability now in place is sufficient to deliver the
anticipated revenue growth and that cost growth should reduce going forwards.
Unaudited Financial Results
The Group's recognised commercial income in the Period was £1.78 million (FY
H1 2022 £1.19 million).
During FY2022, the Directors increased the operational capability of the
business to ensure it had appropriate resource to achieve its strategic
objectives. In this Period we are seeing the impact of that investment and
Total Adjusted Administrative Expenses increased to £3.02 million (H1 FY2022
£2.55 million).
The Group's adjusted operating loss was £1.89 million (H1 FY2022 £1.75
million) and the Loss before taxation was £3.38 million (H1 FY2022 £2.46
million). As noted below, the Loss before Taxation was adversely impacted by
fund raising costs and increased non cash share based payment expenses
relating to the warrants issued. Capital expenditure in H1 FY2023 was £0.16
million (H1 FY22: £0.02 million).
The Group's net assets at 31 December 2022 were £9.86 million (31 December
2021: £9.30 million). The Group's borrowings marginally increased by £0.05
million during the Period to £1.37million at the Period end (30 June 2022:
£1.32 million). Cash at the Period end was £2.97 million (30 June 2022:
£3.84million). Negative operating cash flow before working capital changes
was £1.84 million (H1 FY2022 £1.71 million). A negative working capital
movement of £1.28 million (H1 FY2022 £0.14 million) meant that Cash Used in
Operations was £(3.12) million (H1 FY2022 £(1.58) million).
The Company raised £5.14 million (net) via the issue of 275,526,784 new
ordinary shares in September 2022 at an issue price of £0.02 each (the "Fund
Raise"). As the Fund Raise was done at the nominal value of the ordinary
shares, costs of £0.36 million associated with the Fund Raise have been
included in the Profit & Loss rather than the Share Premium account. As
at 31 December 2022, and at the date of this announcement, the Company had
785,852,475 ordinary shares in issue.
The Company also issued 138,758,392 Warrants to subscribers in the Fund Raise
granting rights to subscribe for 1 additional Ordinary Share for each Warrant
held in the ratio of 1 Warrant for every 2 New Ordinary Shares issued. The
Warrants are exercisable at a price of 2 pence per Ordinary Share within one
year of issue.
Outlook
We believe our functionalized graphene is at the forefront of the fourth
industrial revolution in nanoparticle science. It makes materials lighter,
stronger and more conductive and can provide the environmentally friendlier
solution that many of our customers require. Haydale's patented technology
enables the Company to consistently manufacture industrial volumes of graphene
and other nano materials to provide an enhanced end product at competitive
prices. Whilst its uses are manifold our focus remains on the inks,
composites and elastomers where the route to market, speed of adoption and
overall market size are such that the business is able to deliver short term
revenue growth and sustainable long term returns.
We are pleased to see revenues increase by 50% in the Period and currently
remain on track to meet expectations for the financial year. The Board
remains confident in the significant potential for the Group at this time
and, moreover, believes that the foundations are now in place that will
facilitate the rapid scale up of the business and allow it to realise its
potential.
Keith Broadbent
Chief Executive Officer
28 February 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
For the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2022 31 Dec 2021 30 Jun 2022
Note £'000 £'000 £'000
REVENUE 1,782 1,191 2,901
Cost of sales (841) (583) (1,156)
Gross Profit 941 608 1,745
Other operating income 195 194 442
Adjusted Administrative expenses (3,023) (2,549) (5,520)
Adjusted operating loss (1,887) (1,747) (3,333)
Adjusting administrative items:
Share based payments income/(expenses) (257) 25 (39)
Depreciation and amortisation (727) (618) (1,308)
Share issue costs (371) - -
Impairment - - (375)
(1,355) (593) (1,722)
Total trading administrative expenses (4,378) (3,142) (7,242)
LOSS FROM TRADING (3,242) (2,340) (5,055)
Total administrative expenses (4,378) (3,142) (7,242)
LOSS FROM OPERATIONS (3,242) (2,340) (5,055)
Finance costs (138) (118) (187)
LOSS BEFORE TAXATION (3,380) (2,458) (5,242)
Taxation 182 182 433
LOSS FOR THE YEAR FROM CONTINUING OPERATIONS (3,198) (2,276) (4,809)
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations (22) 13 374
Remeasurements of defined benefit pension scheme 260 30 (109)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR FROM CONTINUING OPERATIONS
(2,960) (2,233) (4,544)
Loss per share attributable to owners of the Parent
Basic (£) and Diluted (£) 2 (0.01) (0.01) (0.01)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
As at 31 December 2022
Unaudited Unaudited Audited
31 Dec 2022 31 Dec 2021 30 Jun 2022
£'000 £'000 £'000
ASSETS
Non-current assets
Goodwill 1,131 1,341 1,131
Intangible assets 1,300 1,209 1,312
Property, plant and equipment 7,265 6,564 7,579
9,696 9,114 10,022
Current assets
Inventories 1,996 1,343 1,515
Trade receivables 904 347 667
Other receivables 595 629 646
Corporation tax 187 546 427
Cash and bank balances 2,971 3,840 1,186
6,653 6,705 4,441
TOTAL ASSETS 16,349 15,819 14,463
LIABILITIES
Non-current liabilities
Bank loans 1,357 1,311 1,341
Pension obligation 1,030 1,035 1,356
Other payable 2,283 2,463 2,440
4,670 4,809 5,137
Current liabilities
Bank loans 11 8 11
Trade and other payables 1,709 1,622 2,199
Deferred income 104 76 68
1,824 1,706 2,278
TOTAL LIABILITIES 6,494 6,515 7,415
TOTAL NET ASSETS 9,855 9,304 7,048
EQUITY
Capital and reserves attributable to equity holders of the parent
Share capital 15,717 10,206 10,207
Share premium account 31,912 31,922 31,912
Share-based payment reserve 501 180 244
Retained (deficits) (38,241) (32,631) (35,303)
Foreign exchange reserve (34) (373) (12)
TOTAL EQUITY 9,855 9,304 7,048
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2022 31 Dec 2021 30 Jun 2022
£'000 £'000 £'000
Cash flow from operating activities
Loss after taxation (3,198) (2,276) (4,809)
Adjustments for:-
Amortisation of intangible assets 145 116 607
Depreciation of property, plant and equipment 584 502 1,076
Share-based payment (income)/charge 257 (25) 39
Profit on disposal of plant and equipment - - 8
Finance costs 137 118 188
Pension plan contributions 39 29 -
Pension - net interest expense 3 4 (92)
Share issue costs 371 - -
Taxation (182) (182) (433)
Operating cash flow before working capital changes (1,844) (1,714) (3,416)
(Increase) in inventories (481) (15) (187)
(Increase)/decrease in trade and other receivables (185) 333 (4)
(Decrease)/increase in payables and deferred income (610) (179) 435
Cash used in operations (3,120) (1,575) (3,172)
Income tax received 423 - 371
Net cash used in operating activities (2,697) (1,575) (2,801)
Cash flow used in investing activities
Purchase of property, plant and equipment (159) (22) (996)
Capitalisation of intangible assets (132) (151) (340)
Net cash used in investing activities (291) (173) (1,336)
Cash flow used in financing activities
Finance costs (77) (59) (63)
Finance cost - right of use asset (60) (60) (125)
Payment of lease liability (296) (241) (548)
Proceeds from issue of share capital 5,511 5,103 5,103
Share issue costs (371) (300) (309)
New bank loans raised 40 451 454
Repayments of borrowings (26) (887) (842)
Net cash flow from financing activities 4,721 4,007 3,670
Effects of exchange rate changes 52 (63) 9
Net increase in cash and cash equivalents 1,785 2,196 (458)
Cash and cash equivalents at beginning of the financial period 1,186 1,644 1,644
Cash and cash equivalents at end of the financial period 2,971 3,840 1,186
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Share Capital Share premium Share-based payment reserve Foreign exchange reserve Retained profits Total
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2021 8,505 28,820 250 (386) (30,430) 6,759
Total comprehensive loss for the period - - - (2,276) (2,276)
Other comprehensive loss 13 30 43
Recognition of share-based payments - - (25) - - (25)
Share based payment charges - Lapsed options - - (45) - 45 -
Issue of ordinary share capital 1,701 3,102 - - - 4,803
At 31 December 2021 10,206 31,922 180 (373) (32,631) 9,304
Total comprehensive loss for the period - - - - (2,533) (2,533)
Other comprehensive profit 361 (139) 222
Recognition of share-based payments - - 64 - - 64
Issue of ordinary share capital 1 (10) - - - (9)
At 30 June 2022 10,207 31,912 244 (12) (35,303) 7,048
Total comprehensive loss for the period - - - - (3,198) (3,198)
Other comprehensive loss - - - (22) 260 238
Recognition of share-based payments - - 257 - - 257
Issue of ordinary share capital 5,510 - - - - 5,510
At 31 December 2022 15,717 31,912 501 (34) (38,241) 9,855
Equity share capital and share premium
The balance classified as share capital and share premium includes the total
net proceeds on issue of the Company's equity share capital, comprising £0.02
ordinary shares. The share premium account can only be used for bonus issues,
to provide for the premium payable on redemption of debentures or to write off
preliminary expenses, or expenses of, or commissions paid on, or discounts
allowed on, any issues of shares or debentures of the company.
Share premium account
The share premium account represents the amount received on the issue of
ordinary shares in excess of their nominal value and is non-distributable.
Share-based payment reserve
The share-based payment reserve comprises the cumulative expense representing
the extent to which the vesting period of share options has expired and
management's best estimate of the achievement or otherwise of non-market
conditions and the number of equity instruments that will ultimately vest.
Retained profits
The retained profits reserve comprises the cumulative effect of all other net
gains, losses and transactions with owners (e.g. dividends) not recognised
elsewhere.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2022
1. Accounting policies
Basis of preparation
The interim financial statements, which are unaudited, have been prepared on
the basis of the accounting policies expected to apply for the financial year
to 30 June 2022 and in accordance with recognition and measurement principles
of International Financial Reporting Standards (IFRSs) as endorsed by the
European Union. The accounting policies applied in the preparation of these
interim financial statements are consistent with those used in the financial
statements for the year ended 30 June 2022.
The interim financial statements do not include all of the information
required for full annual financial statements and do not comply with all of
the disclosures in IAS34 'Interim Financial Reporting'. Accordingly, while
the interim financial statements have been prepared in accordance with IFRS
they cannot be construed as being in full compliance with IFRS.
The financial information for the year ended 30 June 2022 does not constitute
the full statutory accounts for that period. The Annual Report and Accounts
for 30 June 2022 have been filed with the Registrar of Companies. The
Independent Auditors' Report on the Annual Report and Accounts for 2022 was
unqualified and did not include references to any matters which the auditors
drew attention to by way of emphasis without qualifying their report and did
not contain statements under Section 498(2) or 498(3) of the Companies Act
2006.
Going concern
The Directors have prepared and reviewed detailed financial forecasts of the
Group and, in particular, considered the cash flow requirements for the period
from the date of approval of these interim financial statements to the end of
February 2024. These forecasts sit within the Group's latest estimate and
within the longer-term financial plan, both of which are updated on a regular
basis. The Directors remain mindful of the impact that the risks and
uncertainties set out on page 9 of the Annual Report and Accounts for the year
ended 30 June 2022 may have on these estimates.
After due consideration of the forecasts prepared, the Group's current cash
resources, the repayment profile of its debt facilities, and its ability to
potentially access additional debt and equity funds to further develop the
business, the Directors consider that the Company and the Group have adequate
financial resources to continue in operational existence for the foreseeable
future (being a period of at least 12 months from the date of this report),
and for this reason the financial statements have been prepared on the going
concern basis.
2. Loss per share
The calculations of loss per share are based on the following losses and
number of shares:
Unaudited Six months ended Unaudited Six months ended Audited
31 Dec 2022 31 Dec 2021 Year
£'000 £'000 ended
30 Jun 2022
£'000
Loss after tax attributable to owners of the Haydale Graphene Industries Group
(3,187) (2,276) (4,809)
Weighted average number of shares:
- Basic and Diluted 673,549,438 472,892,608 483,770,289
Loss per share:
- Basic (£) and Diluted (£) (0.01) (0.01) (0.01)
The loss attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per
ordinary share are identical to those used for basic earnings per share. This
is because the exercise of share options would have the effect of reducing the
loss per ordinary share and is therefore not dilutive under the terms of IAS
33.
3. Approval
The 31 December 2022 interim financial statements were approved by a duly
appointed and authorised committee of the Board of Directors on 28 February
2023.
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