REG - Inspirit Energy Hlds - Half-year Report

Inspirit Energy HoldingsAnnouncement

30/03/2020 14:35

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. 
 
 


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