REG - Hydrogen Utopia Intl - Interim Results
30/09/2024 12:30
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RNS Number : 2712G Hydrogen Utopia International PLC 30 September 2024
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part
of UK law by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's obligations under
Article 17 of the UK MAR. Upon the publication of this announcement, this
inside information is now considered to be in the public domain.
30 September 2024
Hydrogen Utopia International PLC
(the "Company" or "HUI")
Interim Results
Hydrogen Utopia International PLC, a company specialising in turning
non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels,
new materials or distributed renewable heat, is pleased to announce its
results for the six months to 30 June 2024.
CEO Shareholders' Letter
Dear Shareholders,
I want to take a moment to reflect on the journey of successful companies like
Nvidia. Once considered a penny stock for over two decades, Nvidia has become
a leading force in the semiconductor industry. This remarkable turnaround is
attributed to their strategic risk-taking and significant investments in
research and development. Their experience serves as a powerful reminder that,
while the path may be long, patience and perseverance can ultimately yield
substantial rewards.
In a similar vein, Hydrogen Utopia is committed to making a meaningful impact
in the fields of plastic destruction and hydrogen production. We acknowledge
that we are still in the early stages of our development and face challenges,
particularly in navigating regulatory complexities and securing funding.
Nevertheless, we are proactive and eager to launch our first plant. Please
do not forget that plastic production and consumption is growing exponentially
yet only 10 % of plastics can be successfully recycled. We just need one
insightful institution or investor to understand how important our waste
plastic to hydrogen system is. Further, hydrogen is not just fuel for heavy
vehicles but even plays a crucial role as a key component in semiconductor
production.
Nonetheless, our primary focus remains on heavy-duty transport, with city
buses and trucks being the main consumers of our hydrogen. The data is very
promising. While the transition may appear slow, hydrogen is steadily becoming
a significant force globally. The global hydrogen buses market is valued at
approximately $10 billion in 2023 and is projected to grow significantly,
reaching around $163 billion by 2030. This indicates a remarkable compound
annual growth rate (CAGR) of 47.7%. This rapid expansion reflects increasing
investments in hydrogen infrastructure and a growing emphasis on sustainable
transportation solutions. The European hydrogen bus market is poised for
significant growth in the coming years. Valued at around €500 million in
2023, the market is projected to reach approximately €7 to €10 billion by
2030, indicating a substantial increase. It's estimated that over 10,000
hydrogen buses could be in operation across various European cities by 2030,
compared to around 1,500 in 2023. As of the beginning of this year Solaris-
the largest public bus manufacturer in Europe received orders for 700
hydrogen-powered buses. Investment in hydrogen refuelling infrastructure is
expected to exceed €3 billion by 2030, which will facilitate the expansion
of hydrogen bus fleets. Additionally, the European Union plans to allocate
over €1 billion specifically for hydrogen initiatives as part of its Green
Deal and recovery plans, highlighting the importance of clean transport. Many
European cities aim to have 50% of their public transport fleets operating on
zero-emission technologies by 2030, with hydrogen buses playing a crucial role
in achieving this ambitious goal. These figures illustrate the significant
momentum and potential for the hydrogen bus market in Europe. Our system will
be a perfect fit in this hydrogen-powered future. Our currently envisaged top
location for deployment of a waste plastic to hydrogen system is Longford,
where we are actively collaborating with Powerhouse Energy Group (AIM: PHE).
As you are aware, we have exercised our option to acquire a medicinal cannabis
facility in North Macedonia, capitalising on the substantial growth in the
European medicinal cannabis market. Ohrid Organics is making excellent
progress overall. While Ohrid Organics is pushing hard to meet all necessary
regulatory requirements, Ohrid Organics is pleased to say that they have
finished product ready for supply to a major cannabis player which will be
shipped upon meeting all regulatory hurdles. Ohrid Organics has grown high
quality finished product, with additional quantities in quarantine and
processing. Ohrid Organics is also now welcoming a number of key visitors
interested in future sales contracts. Ohrid Organics is increasingly
recognised as a high-quality, low-cost producer of premium medicinal cannabis,
and expects to meet its profit forecast for 2025. The medicinal cannabis
market is rapidly expanding, particularly in Germany, where recent
decriminalisation has significantly reduced stigma for patients. Additionally,
21 out of 27 EU member states have legalised medicinal cannabis, leading to a
severe supply shortage for patients of high-quality product.
Thankfully our hydrogen technology has garnered significant attention and
support from the EU, indicating a strong demand for our solutions. We welcome
Ursula von der Leyen's recent commitment to reducing bureaucratic hurdles,
which will facilitate our progress. We have been patiently awaiting the easing
of environmental regulations that have hindered technologies like ours for
years. We are optimistic that the bureaucratic obstacles will now be
significantly reduced.
With the unwavering support of our dedicated Board-who consistently go above
and beyond-we have successfully reduced our operating losses and secured
sufficient working capital to navigate these challenging times. In alignment
with Winston Churchill's philosophy that "Success is the ability to go from
failure to failure without losing your enthusiasm," I remain optimistic
despite the challenges we face. I encourage all of you to maintain your
enthusiasm and confidence in our journey.
Thank you for your continued support.
For more information about the Company, please refer to our website:
www.hydrogenutopia.eu (http://www.hydrogenutopia.eu)
For further information, please contact:
Hydrogen Utopia International PLC
Aleksandra Binkowska
+44 20 3811 8770
Alfred Henry Corporate Finance Limited (LSE Corporate Adviser)
Nick Michaels/Maya Klein
Wassink
+44 20 8064 4056
Novum Securities Limited (Broker)
Jon Belliss/Colin
Rowbury
+44 20 7399 9400
Interim Management Report
Commercial, technological and business development
Work continues on building a pipeline of HUI facilities in Europe [and
beyond]. New markets are keen to learn about the HUI technology and support us
in exploring setting up waste to hydrogen facilities in their locality.
Research and Development remains a key component at this stage of the Group's
strategy. Shortly after the period which these interim statements cover, a
grant of up to EUR 300,000 under the EU Just Transition Fund and Enterprise
Grants Scheme was awarded to Alister Future Technologies Ltd, one of the
Company's Irish subsidiaries, to fund the pilot phase of a waste plastic to
hydrogen facility at Longford, Ireland. This will give our R&D
capabilities and facilities in Ireland a further boost.
During August 2024, HUI's CEO, Aleksandra Binkowska, took out a personal loan
facility of up to £3m, pledging security over 50m of her ordinary shares. Her
intention is to use this personal loan facility to support HUI's working
capital requirements without having to dilute shareholders' funds through an
equity raise. Prior to the release of these interim accounts, Aleksandra had
already on-lent £150,000 to HUI with more funding anticipated during the
remainder of 2024.
The Board of Directors continue to monitor the Group's project pipeline, which
includes current and future projects, as well as Group cashflows for OPEX and
project specific funding. Given the significant challenges posed by current
market conditions in raising capital, the Board has sought alternative income
streams to support the Group's objectives in waste-to-energy.
Related party transactions
Ohrid Organics Limited ("OOL") is a company with a majority ownership by
Howard White, who is also a director of HUI PLC. HUI PLC provided an initial
loan to OOL in 2023.
Outlook
The outlook for the Group remains very positive and the Board looks forward to
the second half of the
year with a high degree of confidence in the ongoing execution of its
strategy. Despite the macro-economic backdrop, the Group is moving forward
with current and future projects as expected.
Financial Performance
· Admin expenses for the half year of £0.5m (H1 2023: £0.9m)
· Gross Loss for period decreased to £0.4m (H1 2023: £0.8m)
· Cash at bank as at 30 June 2024 of £0.24m (H1 2023: £2.1m)
Principal risks
The Directors consider that the principal risks and uncertainties which could
have a material effect on the Group's performance identified in the Annual
Report 2023 are also applicable for a period of six months from 31 December
2023.
The Directors continue to monitor the risks associated with currency
fluctuations and believe that the strategy put in place reduces this risk
significantly. .
The Directors continue to monitor the risks associated with currency
fluctuations and believe that the strategy put in place reduces this risk
significantly.
Unaudited Consolidated Statement of Comprehensive Income for the period ending
30 June 2024
Six months Six months Year ended December 31
ended ended
June 30 June 30
2024 2023 2023
Notes £ £ £
(Unaudited) (Unaudited) (Audited)
Administrative expenses (503,711) (866,941) (1,358,657)
Exceptional items - - (241,417)
Operating loss (503,711) (866,941) (1,600,074)
Other revenue 100,000 100,006 100,000
Investment revenues 268 99 372
Finance costs (14,924) - (28,506)
Loss on ordinary activities before taxation (418,367) (766,836) (1,528,208))
Income tax income (211) - 123,099
Loss and total comprehensive income for the period (418,578) (766,836) (1,405,109)
Basic and Diluted Earnings per share from continuing operations (pence) 8 (0.11) (0.20) (0.36)
Unaudited Consolidated Statements of Financial Position as at 30 June 2024
Notes 30 June 2024 30 June 2023 31 December 2023
£ £ £
(Unaudited) (Unaudited) (Audited)
Non-Current assets
Intangible assets 9 606,125 606,125
Property, plant and equipment 9 1,224 587,719 1,418
Investment in Financial Assets 183,898 425,315 183,898
791,247 1,013,034 791,441
Current assets
Trade and other receivables 1,152,545 262,712 605,317
Cash and bank balances 238,795 2,096,389 1,287,189
1,391,340 2,359,101 1,892,506
Current liabilities
Trade and other payables 101,663 78,348 227,652
Borrowings 613,606 584,312 598,681
715,269 662,660 826,333
Net current assets 676,071 1,696,441 1,066,173
Net assets 1,467,318 2,709,475 1,857,614
Equity
Share capital 7 385,520 385,520 385,520
Share premium 5,248,679 5,248,679 5,248,679
Other reserves 185,560 370,866 157,278
Retained earnings (4,352,441) (3,295,590) (3,933,863)
Total equity 1,467,318 2,709,475 1,857,614
Unaudited Consolidated Statement of Changes in Equity for the period ending 30
June 2024
Share Share premium Other reserves Retained profits Total equity
capital
£ £ £ £ £
Balance at 1 January 2023 (audited) 384,320 5,174,684 324,473 (2,528,754) 3,354,723
Loss for the six months ended 30 June 2023 - - - (766,836) (766,836)
Issue of share capital 1,200 88,800 - - 90,000
Share issue costs - (14,805) - - (14,805)
Share based payment expense - - 46,393 - 46,393
Balance at 30 June 2023 (unaudited) 385,520 5,248,679 370,866 (3,295,590) 2,709,475
Loss for the six months ended 31 December 2023 - - - (638,273) (638,273)
Share based payment expense - - (213,588) - (213,588)
Balance at 31 December 2023 (audited) 385,520 5,248,679 157,278 (3,933,863) 1,857,614
Loss for the six months ended 30 June 2024 (418,578) (418,578)
Share based payment expense 28,282 28,282
Balance at 30 June 2024 (unaudited) 385,520 5,248,679 185,560 (4,352,441) 1,467,318
Unaudited Consolidated Statement of Cash Flows for the period ended 30 June
2024
Six Months ended 30th June Six Months ended 30th June Year ended 31st December
2023 2023 2023
£ £ £
Notes (Unaudited) (Unaudited) (Audited)
Cash flow from operating activities
Profit/(loss) for the period (518,578) (766,836) (1,528,208)
Investment Income (268) (99) (372)
Finance costs 14,924 28,506
Disposal of property, plant and equipment - 388
Depreciation, amortisation and impairment 193 247 510
Impairment of intangibles - 241,417
Equity settled share based payment expense 28,282 46,393 (167,195)
(Increase)/decrease in trade and other receivables 3,690 (164,856) (7,463)
Increase/(decrease) in trade and other payables (111,065) (16,056) 147,619
R&D tax credit received 123,099
Net cash generated for/(absorbed in) operating activities (582,822) (901,207) (1,261,699)
Cash flows from investing activities
Purchase of unincorporated business - - -
Purchase of Intangible assets - - (92,288)
Purchase of property, plant and equipment 9 - (71,658) 156
Receipts from agreements 100,000 - 100,000
Investment deposits (550,916) - (500,000)
Investment in Financial Assets - - -
Interest received 268 99 372
Net cash generated for/(absorbed in) investing activities (450,648) (71,559) (491,760)
Cash flows from financing activities
Proceeds from issue of shares - 75,195 75,195
Proceeds from shares to be issued - - -
Proceeds from borrowings - - -
Interest paid (14,924) (28,507)
Net cash generated for/(absorbed in) financing activities (14,924) 75,195 46,688
Net increase in cash & cash equivalents (1,048,394) (897,571) (1,706,771)
Cash and equivalent at beginning of period 1,287,189 2,993,960 2,993,960
Cash and equivalent at end of period 238,795 2,096,389 1,287,189
Notes to the Interim Financial Information
1. General information
Hydrogen Utopia International Plc is a company incorporated and domiciled in
England and Wales. The Company's registered office changed from C/O Laytons
Llp, 3(rd) Floor Pinners Hall, 105-108 Old Broad Street, London, EC2N 1ER to
C/O Laytons Llp, Yarnwicke, 119-121 Cannon Street, London, EC4N 5AT on 16(th)
July 2024. The Company is listed on the LSE main market (ticker: HUI).
The unaudited consolidated financial information comprises the financial
information of Hydrogen Utopia International Plc, HU2021 International UK
Limited, Hydropolis United Sp.Z.O.O., Plastic Gold IKE, Alister Future
Technologies (AFT) Limited, Eranova Longford Limited and HU Future B.V. (the
"Group").
The principal activities of the entities in the Group are as follows: -
Name of company Country of incorporation Principal activities
Hydrogen Utopia International plc England and Wales Holding company
HU2021 International UK Limited England and Wales SPV
Hydropolis United Sp.Z.O.O. Poland Energy producer
Plastic Gold I.K.E Greece Energy producer
Alister Future Technologies (AFT) Ltd Ireland SPV
Eranova Longford Limited Ireland Energy producer
HU Future B.V. The Netherlands SPV
There have been no significant changes in these activities during the relevant
financial periods.
The consolidated interim financial information has been prepared in accordance
with UK adopted International Accounting Standards (IFRSs). The interim
financial information does not constitute full financial statements within the
meaning of Section 435 of the Companies Act 2006. The interim results have not
been audited or reviewed by the Company's auditors. The unaudited interim
results have been prepared under the historical cost convention, in accordance
with the Companies Act 2006 and applicable accounting standards in the United
Kingdom.
The comparative figures for the year ended 31(st) December 2023 for the
Company are extracted from the audited financial statements which contained an
unqualified audit report and did not contain statements under Sections 498 to
502 of the Companies Act 2006.
The Directors have considered all available information about future events
when considering going concern. The Directors have prepared and reviewed cash
flow forecasts for 12 months following the date of these Financial Statements.
The projections show that the Company will have sufficient funding to be able
to continue as a going concern on the basis of its cash balances as at 30 June
2024.
2. Presentational currency
The financial information has been presented in sterling ("£") the
Group's presentational currency. The functional currency of the Group is
sterling ("£").
3. Summary of significant accounting policies
The same accounting policies and methods are used in the Interims as compared
with the most recent financial statements, the year ended 31(st) December
2023, these Interims should be read in conjunction with them, which can be
found here https://www.hydrogenutopia.eu/investors
(https://www.hydrogenutopia.eu/investors)
Investment in Financial Assets are measured at fair value, any interest or
dividend income are recognised in profit and loss.
The tax charge on profits assessable has been calculated at the rates of tax
prevailing, based on existing legislation, interpretation and practices in
respect thereof.
4. Segmental reporting
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Operating Group that are regularly reviewed by
the chief operating decision maker (which takes the form of the Board of
Directors) as defined in IFRS 8, in order to allocate resources to the segment
and to assess its performance.
Based on management information there is one operating segment. Revenues are
reviewed based on the services provided.
No single customer has accounted for more than 10% of total revenue during the
periods presented.
5. Related Party Disclosure
As at 30 June 2024 the group was owed £250 by Plastic Power Limited (A
Binkowska) and £403 by The Plastic Neutrality Pledge (A Binkowska).
6. Significant events during the period
On 2 January 2024 an RNS confirmed that the board had exercised HUIs option to
acquire 49% of Ohrid Organics Ltd (OOL) expecting dividends to provide HUI
with the necessary cashflow in 2024 and beyond for working capital and fund
development of HUI's first waste plastic to hydrogen facility.
On 22 January 2024 the board granted share options to James Nicholls-May, CFO
worth £25,000 at a price of 3.875p per share.
On 6 February 2024 it was announced that a wholly owned subsidiary of King
Fild DOO (KFD) agreed the acquisition of 13,567 sqm of land adjacent to the
King Fild facility in Ohrid, North Macedonia. This land could be used for a
HUI waste plastic to hydrogen facility.
On 26-27 February 2024 the Company announced it was in talks with Essential
Energy Holding Group Corp (EEH), a company specialising in biofuels with
operations in Europe, South America and USA with revenues in excess of EUR365m
and profits before taxes of EUR40m, about a possible reverse takeover with the
target company being valued at £500m.
On 5 March 2024 OOL's subsidiary, KFD had its first commercial medicinal
cannabis harvest of 200kg.
On 11 March 2024 Alister Future Technologies Ltd (AFT), a wholly owned
subsidiary of HUI entered into a subscription and shareholder agreement with
Powerhouse Energy International Ltd (PHE International) on a joint venture at
Longford, Ireland using the previously wholly owned subsidiary Eranova
Longford Ltd (Eranova), which has a lease agreement of 25 years for the site.
On 15 April 2024 HUI provided an update on progress at KFD's facilities in
North Macedonia which included highlights of the successful harvests, upgrades
to facilities, strain developments and expansion progress.
On 18 June 2024 HUI's subsidiary AFT was successful in being awarded a grant
of up to EUR 300,000 under the EU Just Transition Fund and Enterprise Grants
Scheme to fund the pilot phase of a waste plastic to hydrogen facility at
Longford, Ireland.
On 25 June 2024 HUI informed the market that HUI and EEH had mutually agreed
that the potential reverse takeover of EEH was not in the Parties' best
interests.
On 25 June 2024 HUI confirmed that the acquisition of 49% of OOL is
proceeding.
On 27 June 2024 the Company held it's AGM in Ohrid, North Macedonia, allowing
shareholders and interested parties the opportunity to see KFD's facilities in
a video call after the HUI AGM.
7. Called up share capital
Authorised Nominal value 30 Jun 24 30 Jun 23 31 Dec 23
(Unaudited) (Unaudited) (Audited)
£ £ £
385,520,000 Ordinary £0.001 385,520 385,520 385,520
8. Basic and diluted earnings per share
The calculation of earnings per share is based on the following earnings and
number of shares.
Six months Six months Year ended 31 December 2023
Ended 30 June 2024 Ended 30 June 2023
(Unaudited) (Unaudited) (Audited)
£ £ £
Total comprehensive loss (418,578) (766,836) (1,405,109)
Weighted average number of ordinary shares 385,520,000 385,367,514 385,444,384
Earnings per share
Basic and diluted earnings per share (pence) (0.11) (0.20) (0.36)
9. Intangible assets and Property, plant and equipment
Intangible assets Computers Total
£ £ £
Cost
At 1 January 2023 513,837 2,771 516,576
Additions 70,749 909 71,658
At 30 June 2023 584,586 3,680 588,266
Additions 21,539 - 21,539
Disposals - (1,752) (1,752)
At 31 December 2023 606,125 1,928 608,053
Adjustments - (1) (1)
At 30 June 2024 606,125 1,927 608,052
Accumulated depreciation and impairment
At 1 January 2023 - 300 300
Charge for the period - 247 247
At 30 June 2023 - 547 547
Charge for the period - 263 263
Eliminated on disposal (300) (300)
At 31 December 2023 - 510 510
Charge for the period - 193 193
At 30 June 2024 - 703 703
Carrying amount
At 1 January 2023 513,837 2,471 516,308
At 30 June 2023 584,586 3,133 587,719
At 31 December 2023 606,125 1,418 607,543
At 30 June 2024 606,125 1,224 607,350
10. Related party transactions
All Group related parties transactions are unchanged from the 6 months ended
31 December 2023. For further information on the Group's related parties,
please refer to the Group's Annual Report 2023.
11. Events after the reporting period
On 8 July 2024 HUI changed auditor and registered office.
On 27 August 2024 HUI's CEO took out a personal loan facility of up to £3m,
pledging security over 50m of her ordinary shares. Her intention is to use
this personal loan facility to support HUI's working capital requirements
without having to dilute shareholders' funds through an equity raise.£150,000
was already on-lent to HUI.
On 29 August 2024 Howard White, executive director, bought 500,000 additional
ordinary shares at 4.88p bringing his total interest to 16,275,834 ordinary
shares (4.22%).
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