Inspirit Energy Hlds - Half-year Report

Inspirit Energy Holdings

30/03/2020 14:33

RNS Number : 0914I

Inspirit Energy Holdings PLC

30 March 2020

 

30 March 2020

 

Inspirit Energy Holdings PLC

("Inspirit Energy", the "Group" or the "Company")

 

 

Interim Results

 

Inspirit Energy Holdings PLC (AIM: INSP), the developer of micro Combined Heat and Power (microCHP) boilers, is pleased to announce its interim accounts for the six months ended 31 December 2019. The interim financial information document will also be available on the Company's website www.inspirit-energy.com.

 

 

Chairman's Statement:

 

During the period, the Group continued to advance its microCHP boiler and marine engine application with its European partners.  To this end, improvements to the design of the Group's Stirling engine technology, including output of 6.4kW, progressed further with the simplification as part of the 'design for manufacture' process and meeting the challenges in new technology development, sourcing cheaper materials and efficiency re-redesign. All these factors resulted in further delays to the certification process although we hope to progress forward with a higher output and cheaper cost base product later his year.

 

The Group has continued discussions with a European company that may carry out the certification process, with the new cheaper but robust material employed in the latest model, and advanced manufacturing processes as and when the product is approved for production.

 

As mentioned previously, the applicable market for our technology is global, either as a boiler replacement product or as an add-on to an existing commercial plant room. In the UK there are in excess of 20 million gas boilers installed and more than 1.6 million new and replacement domestic gas boilers are installed each year. This is in addition to almost 300,000 commercial boiler installations each year. Europe as a whole has approximately 70 million boilers installed. These are the first markets to which our technology is applicable. The Company has identified other markets where our stirling engine technology can be used including marine engine and waste recycling.

 

The Company raised £300,000 before expenses and this was during challenging market conditions which reflects the confidence of investors in Inspirit's technology.

 

The Company converted its loan notes totalling £845,000 and other debt to equity and as a result, substantially reduced its debt close to zero. The board would like to thank the loan note holders for their commitment and support and  with recent engineering progress and opportunity to tap into other markets. We hope that this reduction in debt will provide the right base from which the business can now grow.

 

 

Finally, the Board recognises that these are unprecedented times and that the necessary actions Global Governments are taking to control COVID-19 are inevitably causing disruption to the economy. As with all businesses, we are not immune to this and are currently experiencing movement and lock down restrictions in the UK and Europe. As a result, our European partners and Marine counterparts are reviewing constantly the timeline in resuming development and testing of our microCHP boiler.  The board will provide further updates in due course.

 

Design and Development Director Statement and outlook:

 

At the start of 2020 Inspirit Energy set up the manufacturing and testing site in Poland in readiness to implement the manufacturing and testing of the charger unit. The facility is set up for the manufacturing and testing of our developing technology.  

We have progressed with very favourable discussions with the large marine engine manufacturer and these discussions are continuing. We have had other interest from waste recycling companies to adapt our technology to capture redundant waste heat and generate electricity, we are working on a large standalone unit which will produce over 300 Kw. Again, we will provide further updates in due course.

 

 

 

-ends-

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

More information on Inspirit Energy can be seen at: www.inspirit-energy.com

 

 

For further information please contact:

 

Inspirit Energy Holdings plc
John Gunn, Chairman and CEO
+44 (0) 207 048 9400
Beaumont Cornish Limited
www.beaumontcornish.com
(Nominated Advisor)
Roland Cornish / James Biddle
+44 (0) 207 628 3396
Global Investment Strategy UK Ltd
(Broker)
Samantha Esqulant
+44 (0) 207 048 9045

 

 

 

 

 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Comprehensive Income

for the six months ended 31 December 2019

 

 

Group
Six months
to
31 December 2019
Unaudited
Group
Six months
to
31 December 2018
Unaudited
Group
Year
to
30 June
2019
Audited
£'000s
£'000s
£'000s
Revenue
-
-
-
Administrative expenses
(188)
(213)
(264)
────────
────────
────────
Operating loss
(188)
(213)
(264)
Finance costs
(1)
(1)
-
────────
────────
────────
Loss before tax
(189)
(214)
(264)
Income tax credit
-
-
25
────────
────────
────────
Loss for the period from continuing
operations attributable to shareholders
(189)
(214)
(239)
════════
════════
════════
Loss per share - Pence
Basic and diluted
(0.007)p
(0.015)p
(0.017)p
════════
════════
════════


 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Financial Position as at 31 December 2019

 

Group
As at
31 December 2019
Unaudited
Group
As at
31 December 2018
Unaudited
Group
As at
30 June
2019
Audited
£'000s
£'000s
£'000s
Non-Current Assets
Intangible assets
2,570
2,401
2,570
Tangible assets
39
42
38
───────
───────
───────
2,609
2,443
2,608
Current assets
Trade and other receivables
167
37
63
Cash and cash equivalents
90**
175
40
───────
───────
───────
257
212
103
───────
───────
───────
Current liabilities
Trade and other payables
(341)
(226)
(307)
Other borrowing
(100)
(100)
(100)
───────
───────
───────
(441)
(326)
(407)
───────
───────
───────
Net Current Liabilities
(184)
(114)
(304)
Non-Current Liabilities
Borrowings
(3)
(845)
(845)
───────
───────
───────
2,422
1,484
1,459
═══════
═══════
═══════
Equity
Share capital
1,966
1,818
1,818
Share premium
9,189
8,185
8,185
Other reserves
3
3
3
Merger reserve
3,150
3,150
3,150
Reverse acquisition reserve
(7,361)
(7,361)
(7,361)
Retained losses
(4,525)
(4,311)
(4,336)
───────
───────
───────
Total
2,422
1,484
1,459
═══════
═══════
═══════


** At 31 December 2019, £145,000 was held in the Company's broker account and is disclosed in Trade and other receivables.

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Changes in Equity

For the six months ended 31 December 2019

 

 

 

Attributable to the owners of the parent
Share
Share premium
Other reserves
Merger reserve
Reverse acquisition reserve
Retained
Total
capital
losses
Equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
BALANCE AT 30 June 2017
1,568
8,144
206
3,150
(7,361)
(3,347)
2,360
Loss for the period
-
-
-
-
-
(953)
(953)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
-
-
-
-
-
(953)
(953)
Share issues
250
50
-
-
-
-
300
Share issue costs
-
(9)
-
-
-
-
(9)
Share options lapsed
(203)
203
-
TRANSACTIONS WITH OWNERS
250
41
(203)
-
-
203
291
BALANCE AT 30 June 2018
1,818
8,185
3
3,150
(7,361)
(4,097)
1,698
Loss for the period
-
-
-
-
-
(239)
(239)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
-
-
-
-
-
(239)
(239)
BALANCE AT 30 June 2019
1,818
8,185
3
3,150
(7,361)
(4,336)
1,459
Loss for the period
-
-
-
-
-
(189)
(189)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
-
-
-
-
-
(189)
(189)
Share issues
148
1,025
-
-
-
-
1,173
Share issue costs
-
(21)
-
-
-
-
(21)
TRANSACTIONS WITH OWNERS
148
1004
-
-
-
-
1,152
BALANCE AT 31 December 2019
1,966
9,189
3
3,150
(7,361)
(4,525)
2,422

 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Cash Flows

For the six months ended 31 December 2019

 

 

Group
Six months
to
31 December 2019
Unaudited
Group
Six months
to
31 December 2018
Unaudited
Group
Year
to
30 June
2019
Audited
Note
£'000
£'000
£'000
Operating activities
Net cash from operating activities
6
(258)
131
164
───────
───────
───────
Net cash generated/(used) in operating activities
(258)
131
164
───────
───────
───────
Investing activities
Acquisition of intangible assets
-
-
(169
Acquisition of plant and equipment
-
-
-
───────
───────
───────
Net cash from financing activities
-
-
(169)
───────
───────
───────
Financing activities
Issue of share capital (Net of fees)
1,151
-
-
Finance costs
(1)
(1)
-
Decrease in borrowing
-
-
-
Transactions with owners
(842)
-
───────
───────
───────
Net cash from financing activities
308
(1)
-
───────
───────
───────
Net cash outflow
50
130
(5)
Cash and cash equivalents at the beginning of the period
40
45
45
───────
───────
───────
Cash and cash equivalents at the end of the period
90
175
40
═══════
═══════
═══════


 

 

 

 

 

 

 

 

 

 

INSPIRIT ENERGY HOLDINGS PLC

 

Consolidated Notes to the Interim Financial Information

 

1.   General Information

 

      The principal activity of Inspirit Energy Holdings PLC ("the Company") during the period was that of an investment company which aims to invest in disruptive products or technologies that are either proven or at the later stages of development, which own or have exclusive licence to the relevant intellectual property and may benefit from feed-in tariffs or other renewable energy incentives.

     

      Inspirit Energy Holdings PLC is a company incorporated and domiciled in England and Wales and quoted on AIM, a market operated by the London Stock Exchange. The address of its registered office is 2nd Floor, 2 London Wall Buildings, London, EC2M 5PP, United Kingdom.

 

2.   Basis of Preparation

 

The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006.  It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 30 June 2019 were approved by the Board of Directors on 23 December 2019 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.

 

The interim financial information for the six months ended 31 December 2019 has not been reviewed or audited.  The interim financial report has been approved by the Board on 27 March 2020.

 

Going concern

 

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Company to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the interim financial statements for the period ended 31 December 2019.

 

Risks and uncertainties

 

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2019 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.inspirit-energy.com. The key financial risks are liquidity and credit risk.

 

Critical accounting estimates

 

The preparation of interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 2 of the Company's 2019 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

 

 

3.   Significant Accounting Policies

 

     The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2019, as described in those annual financial statements.

 

4.  Segmental Analysis

 

The Company's primary reporting format is business segments and its secondary format is geographical segments. The Company only operates in a single business and geographical segment. Accordingly, no segmental information for business segment or geographical segment is required.

 

5.   Loss per Share

 

The loss per ordinary share is based on the Group's loss for the period of £189,000 (company's loss - 6 months to 31 December 2018 £214,000; year ended 30 June 2019 - £239,000) and a basic and diluted weighted average number of ordinary shares of £0.0001 each in issue of 2,899,211,616 (31 December 2018 1,420,806,859 - basic and diluted 1,420,806,859; 30 June 2019).

 

 

 

6.   Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities

Group
Six months
to
31 December
2019
Unaudited
Group
Six months
to
31 December 2018
Unaudited
Group
Year
to
30 June
2019
Audited
£'000s
£'000s
£'000s
Operating Loss for the period
(189)
(214)
(264)
Adjustments for :
(Increase)/Decrease in receivables
(104)
379
352
(Decrease)/Increase in payables
34
(35)
44
Depreciation
-
-
7
Finance expense
1
1
4
Tax credit
-
-
25
───────
───────
───────
Net cash from operating activities
(258)
131
164
═══════
═══════
═══════

 

 

 

7.   Issued and fully paid

 

      The issued share capital is as follows

 

Number of ordinary shares
Number of deferred shares
Ordinary shares
Deferred shares
New Deferred B shares
Share premium
Total
£
£
£
£
£
At 30 June 2017
1,170,806,859
400,932
1,170,807
396,923
-
11,295,421
12,863,151
Issue of new shares
250,000,000
-
250,000
-
-
50,000
300,000
Capital Reorganisation
(1,406,599)
1,406,599
-
-
Issue costs
-
-
-
-
-
(9,765)
(9,765)
At 30 June 2018
1,420,806,859
400,932
14,208
396,923
1,406,599
11,335,656
13,153,386
Issue of new shares
-
-
-
-
-
-
-
Issue costs
-
-
-
-
-
-
-
At 30 June 2019
1,420,806,859
400,932
14,208
396,923
1,406,599
11,335,656
13,153,386
Issue of new shares
1,478,404,757-
-
147,840
-
-
1,024,960
1,172,800
Issue costs
-
-
-
-
-
(21,140)
(21,140)
At 31 December 2019
2,899,211,616
400,932
162,048
396,923
1,406,599
12,339,476
14,305,046

 

 

 

 

8.   Subsequent events after the reporting period

 

      On 23rd December 2019, the Company received a loan conversion notices for £3,200 on the Convertible Loan Notes and zero (Nil) Loan Notes remained outstanding.

 

      In relation to these loan notes, an application was made for the 4,571,433 Ordinary Shares to be admitted to trading on or about 6 January 2020. On Admission of these shares, the Company's enlarged issued share capital comprised 2,903,783,045 Ordinary Shares. 

 

 

9.   Copies of this interim financial information document are available from the Company at its registered office at 2nd Floor, Number 2, London Wall Buildings, London, EC2M 5PP. The interim financial information document will also be available on the Company's website www.inspirit-energy.com.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

 
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