REG - Libertine Holdings - Half year results
19/12/2023 07:00
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RNS Number : 2139X Libertine Holdings PLC 19 December 2023
19 December 2023
Libertine Holdings PLC
("Libertine" the "Company" or the "Group")
Half year results for the six months ended 30 September 2023
Libertine Holdings PLC (LSE AIM: LIB), a developer of Linear Generator
technology, today announces its half year results for the six months ended 30
September 2023.
Highlights
· Integration of Libertine's HEXAGEN™ hermetic Linear Generator
technology into Hyliion's KARNO™ generator ALPHA prototypes. In May 2023
Hyliion's KARNO™ Hypertruck commercial vehicle demonstrator was exhibited
at the ACT Expo in Anaheim, California. In October 2023 a
KARNO™ generator using Libertine's HEXAGEN™ technology successfully
returned power to the grid in Ohio.
· Phase 1 engineering development with Hyliion is complete, contract
has entered a 6-month Option Period for HEXAGEN™ platform technology IP
licensing.
· In August 2023 Libertine completed design, manufacture and first
phase of combustion testing of Libertine's intelliGEN™ performance
validation prototype for distributed power generation and heavy-duty
powertrain applications.
· In September 2023 Ashok Leyland's Linear Generator collaboration with
Libertine was showcased alongside H2-ICE and Fuel Cell developments at Ashok
Leyland's 75th anniversary event in Chennai.
· intelliGEN™ and HEXAGEN™ platform performance and durability
enhancements are on track. These enhancements are planned to satisfy
stage-gate performance requirements for entry into OEM new product development
programmes expected to commence in 2024.
· Libertine has pre-funded build of a small number of additional
intelliGEN™ prototype Linear Generators which are planned to support OEM new
product development programmes.
· Technical progress has generated OEM commercial interest in
intelliGEN™ and HEXAGEN™ technology platforms for the decarbonisation of
heavy-duty powertrain, distributed power generation and gas compression
applications across several geographic regions.
Outlook
As of 30 September 2023, the Group had cash reserves of £0.9m, which provide
the Group, absent any additional revenues, with the funds required to maintain
current operations through to May 2024.
The Company remains committed to developing its intelliGEN™ and HEXAGEN™
technology platforms which the Company provides to its OEM customers for their
development of Linear Generator and Linear Motor products.
The Company is presently engaged in commercial and technical dialogue under
NDA with prospective OEM customers across a number of different applications
and geographic regions.
Sam Cockerill, Chief Executive of Libertine, commented:
"We are pleased to have completed work with Hyliion during the period which
saw exhibition of their KARNO™ Hypertruck commercial vehicle demonstrator at
the ACT Expo in Anaheim CA in May 2023, and has since enabled a KARNO™
generator to successfully return power to the grid in Ohio.
"The HEXAGEN™ platform advances that have been demonstrated on the KARNO
generator have led to continued commercial interest in this platform for gas
compression and energy storage applications, and form the basis of new
intellectual property that underpins both HEXAGEN™ and intelliGEN™
platforms.
"We are on track with the implementation of further performance and durability
enhancements to our intelliGEN™ and HEXAGEN™ platforms. These enhancements
are planned to satisfy entry requirements for multiple OEM new product
development programmes expected to commence in 2024.
"Commercial interest in our intelliGEN™ and HEXAGEN™ technology platforms
remains strong, supported by the technical progress demonstrated in 2023.
Prospective customer applications span distributed power generation,
heavy-duty vehicles, and gas compression. We are making good progress with a
number of OEM and end product customers in the US, Europe, Middle East and
India who we anticipate will incorporate our platform technology into their
product development and demonstration programmes."
Half year results presentation
Sam Cockerill, Chief Executive Officer, and Gareth Hague, Chief Financial
Officer, will be hosting an Investor Meet Company presentation
at 11:00am (UK time) on 19 December 2023. Please sign up via the following
link:
https://www.investormeetcompany.com/libertine-holdings-plc/register-investor
(https://www.investormeetcompany.com/libertine-holdings-plc/register-investor)
.
For more information, please visit www.libertine.co.uk
(http://www.libertine.co.uk) or contact:
Libertine Holdings PLC via Tavistock
Sam Cockerill, Chief Executive Officer
Gareth Hague, Chief Financial Officer
Panmure Gordon (NOMAD and Broker) +44 20 7886 2500
John Prior
Dougie McLeod
Hugh Rich (Corporate Broking)
Tavistock (Public Relations and Investor Relations) +44 207 920 3150
Rebecca Hislaire libertine (mailto:libertine@tavistock.co.uk) @tavistock.co.uk
(mailto:libertine@tavistock.co.uk)
Charles Baister
About Libertine
Founded in 2009, Libertine provides technology platform solutions for Original
Equipment Manufacturers ("OEMs"), enabling efficient and clean power
generation from renewable fuels, and more effective energy storage devices and
gas compressor systems. Libertine was admitted to trading on the AIM market of
the London Stock Exchange in December 2021.
Libertine has created two technology platforms, each using the same core
technology elements, which the Company provides to its OEM customers for their
development of Linear Generator and Linear Motor products:
- The intelliGEN™ platform enables the creation of clean, highly
efficient and fuel-flexible Linear Generator products including:
• Heavy-duty hybrid powertrains of trucks, buses, tractors,
construction and mining equipment;
• Medium and light-duty hybrid powertrains of commercial vehicles
operating over longer distances;
• A proportion of the passenger automotive market where vehicle
use and recharging constraints are a barrier to battery electrification; and
• A wide range of off-grid, portable power and distributed power
generation applications.
- The HEXAGEN™ platform enables more effective energy storage,
thermal power generation, waste heat recovery and gas compression products
including:
• Stirling Engine power generators and thermal energy storage
systems;
• Linear motor reciprocating compressor (LMRC) systems for
hydrogen refuelling stations; and
• Organic Rankine Cycle waste heat recovery systems.
These two platforms are a result of over a decade of development and
performance validation of Libertine's proprietary core technology elements
including its linear electrical machines, controls and developer tools.
The potential market for Linear Generator products goes well beyond the
distributed power generation applications where Linear Generators are already
in commercial use today, complementing intermittent renewable power with
clean, on-demand power generation. Linear Generators also have the potential
to complement battery electrification in hybrid powertrains, providing
on-board power generation to address the practical and economic barriers to
rapid adoption of clean electric propulsion using battery electric powertrain
technology alone.
Working with OEMs from an early stage in the development cycle ensures
Libertine's technology is effectively integrated into OEM products, maximising
the performance and economic benefits provided by Libertine's platform
technology. Libertine has developed a portfolio of over 30 granted patents in
addition to a significant body of technical know-how generated since the
Company's formation. The Company's senior management team and board includes
executives with decades of deep technical experience in the automotive and
energy industries.
Chief Executive's Statement
I am pleased to report on our strategic progress and business performance for
the 6 months ended 30 September 2023.
During the period, Libertine has supported the adoption and use of our Linear
Generator technology platforms by our OEM customers and strategic development
partners, in line with our strategy.
Our mission is to bring forward the widespread use of Linear Generators in
transport and distributed power applications.
Business Overview
Manufacturers of heavy-duty commercial vehicles have pledged to go "fossil
free" by 2040 through a combination of powertrain technologies that include
battery electrification, green hydrogen, renewable biofuels and synthetic low
carbon fuels. Achieving this will require the rapid deployment of fossil
fuel-free capable trucks by 2030; however, this can only happen if there is
large demand from transport operators based on the use case economics for such
trucks.
Battery electrification is not a universal solution to the problem of
decarbonising transport. A number of significant economic barriers prevent
trucks powered solely by battery electric powertrain technology from achieving
decarbonisation of the heavy goods transport industry, including:
· reduced payload, due to the size and weight of batteries required;
· unproductive miles and hours, to charge the batteries;
· few charging points, creating uncertainty for truck operators and the
need for off-route miles; and
· higher vehicle costs, predominantly due to the battery costs.
Libertine has developed the intelliGEN™ and HEXAGEN™ Linear Generator
technology platforms which have the potential to complement battery
electrification within hybrid powertrains, addressing the significant economic
barriers set out above.
Linear Generators are already in commercial use in distributed power
generation applications, displacing conventional generators due to their
favourable operating economics compared to today's less efficient internal
combustion engine generator technology.
Libertine's technology will help meet the global need for clean, reliable and
affordable transport and electrical power wherever it is needed, transforming
the lives of millions of people.
Strategic Priorities
Libertine's proposed technology licensing model supports stage-gated
development by OEM partners seeking to address key performance, technical,
economic and route-to-market risks and to develop their own proprietary
combustion systems and product integration IP. In the near term, in addition
to grants, Libertine expects to continue to generate a high proportion of its
revenue in engineering fees for developing and providing linear e-machine
hardware, controls and developer tools to power generator OEM customers.
Over time, as client development programmes result in the launch of commercial
Linear Generator products, Libertine expects to increase the proportion of
revenue generated from advance licence fees and from royalties charged per
unit on every Linear Generator product or system that uses
Libertine's technology.
During the period, Libertine has completed its work on the integration of its
HEXAGEN™ electrical linear generator technology with Hyliion. We were
delighted to support the demonstration of Hyliion's KARNO™ Hypertruck at the
ACT Expo in Anaheim, California in May 2023.
Libertine has also advanced its intelliGEN™ linear generator platform
through the completion of a grant funded program with BEIS. Having completed
the design and manufacture of a performance validation prototype Linear
Generator, "LGN120", we have completed a first phase of combustion testing at
MAHLE Powertrain. In advance of further combustion testing we are taking the
opportunity to implement a number of performance and durability enhancements,
which are planned to satisfy entry requirements for OEM product development
programmes. We expect to demonstrate these enhancements in Q1 2024.
Commercial interest in Libertine's technology platform within powertrain,
stationary power and gas compression applications remains strong, and we
expect to support the use of our technology within further OEM product
development programmes.
Market Overview
The addressable market for Linear Generators is significant, including over
twelve million heavy duty and light duty commercial vehicles, and more than
one million distributed power generator sets for energy storage, off-grid and
waste-to-energy applications. Libertine's technology platform is scalable
across multiple market segments and geographies, covering applications from
1-250 kilowatts of electrical power.
During the period, work has focused on the completion of performance
validation prototypes for both the intelliGEN™ and HEXAGEN™ platforms. We
have also progressed commercial interest across other application sectors,
including distributed power and hydrogen compression.
Technical Progress
Investment in core technology development has increased in-line with IPO
plans. During the period we are pleased to have delivered a number of
performance validation prototypes to customer / partner testing sites in the
UK and US and have provided on-site support to these testing programmes. We
have achieved a number of technical milestones, including progressions across
durability, efficiency and power output metrics in line with our technology
roadmap expectations.
Core technical development in FY2023/24 is focused on specific changes
required to the intelliGEN™ and HEXAGEN™ platforms to improve durability
and operations across a wider range of compression ratios for fuel
flexibility, cold start, transient and lean operation.
Financial Performance
During the period, Libertine has continued to support the integration of its
HEXAGEN™ technology platform with Hyliion Holdings Corp. (NYSE: HYLN,
"Hyliion") and develop its intelliGEN™ technology platform through grant
funded operations with the Department for Business, Energy and Industrial
Strategy ("BEIS"), alongside a number of other commercial projects.
The Group delivered £121k of commercial revenue and £36k of grant income in
the period through the finalisation of programmes with Hyliion and BEIS.
As of 30 September 2023, the Group had cash reserves of £0.9m.
Outlook
We are pleased to have completed work on performance validation prototypes for
both the intelliGEN™ and HEXAGEN™ platforms. We are currently working on
performance and durability enhancements, which we expect to meet the
requirements of OEM product development programmes expected to commence in
2024.
Commercial interest in our intelliGEN™ and HEXAGEN™ technology platforms
remains strong, supported by the technical progress demonstrated in 2023.
Prospective customer applications span distributed power generation,
heavy-duty vehicles, and gas compression. We are making good progress with a
number of OEM and end product customers in the US, Europe, Middle East and
India who we anticipate will incorporate our platform technology into their
product development and demonstration programmes.
Management remains focused on partnering with OEMs to support the funding
requirements for bringing the technology to market.
Financial Review
During the period we have continued to deliver on commercial and grant funded
programmes for the development of the HEXAGEN™ and intelliGEN™ platforms.
These programmes have resulted in the demonstration of our HEXAGEN™
technology within Hyliion's KARNO™ Hypertruck, and the completion of a first
phase of combustion testing of Libertine intelliGEN™ prototype hardware.
We remain committed to delivering on our current customer programmes and
supporting the integration of our technology into the products of our OEM
customers.
Financial Performance
HY2023/24 HY2022/23
£m £m
Commercial revenue 0.1 0.7
Grant income 0.1 0.2
Total income 0.2 0.9
Cost of sales (0.1) (0.8)
Admin expenses (1.3) (1.8)
Adjusted EBITDA (1.2) (1.7)
Depreciation (0.0) (0.1)
Net interest charge (0.0) -
Loss before tax (1.2) (1.8)
Taxation 0.2 0.1
Loss after tax (1.0) (1.7)
Revenues and Grant Income
Commercial revenues in the period were generated from engineering services on
a number of customer programmes. The majority of the commercial revenue came
from engineering development with Hyliion.
Grant income in the period relates to the finalisation of a program BEIS to
support the further development of the intelliGEN™ platform to demonstrate
hydrogen and compressed natural gas ("CNG") fuel flexibility.
Expenses
Cost of sales and administrative expenses reduced in the period in-line with
incomes, and as a result of a lower run rate for core technical development as
work was focused on specific performance and durability enhancements on the
intelliGEN™ and HEXAGEN™ platforms.
Adjusted EBITDA
The Adjusted EBITDA loss of £1.2m (HY2022/23: £1.7m) decreased on the prior
period as a result of the planned reduction in core technical development.
Adjusted EBITDA is calculated after adding back operating costs of an
exceptional nature, which are not considered to form part of the underlying
performance. The reconciliation of adjusted EBITDA to the loss from operations
for the financial period is shown in note 7.
Taxation
The tax credit for the current and prior period relates to research and
development tax credits. No corporation tax charge has been incurred in the
period as a result of the losses before taxation.
Cash
The Group end of period cash balance for HY2023/24 was £0.9m (HY2022/23:
£4.8m, FY2022/23: £2.5m). In line with our plans set out at IPO, we have
continued to invest in the development of our core technology platform and
in the scale up of our operational teams to support OEM customers.
Given the supply chain challenges experienced in the prior year, we have built
inventories to support expected sales of intelliGEN™ prototype hardware
during FY2023/24. Inventories have increased by £0.2m since the year end.
Accounting Policies
The consolidated financial information has been prepared consistently
in accordance with UK-adopted International Accounting Standards.
Going Concern
The interim statement has been prepared on a going concern basis.
The Directors have undertaken a comprehensive assessment to consider the
Group's ability to trade as a going concern for a period of twelve months from
the date of approving the interim statement. As of 30 September 2023, the
Group had cash reserves of £0.9m, in addition to outstanding debtors of
£0.2m, inventories of £0.8m, corporation tax receivables due of £0.5m and
current liabilities of £0.4m.
The Directors have robustly tested the going concern assumption in preparing
the interim statement, taking into account the Group's liquidity position as
at 30 September 2023 and a number of severe but plausible downside scenarios,
which collectively would be considered remote. Absent of any additional
revenues, the Group has funds required to maintain current operations, through
to May 2024. The Group expects to secure new revenues and incomes within the
next 12 months which are more than sufficient to support approving the interim
statement as a going concern. The Directors acknowledge that uncertainty may
arise with respect to both the timing and quantum of additional revenues and
income. This indicates a material uncertainty which may cast significant doubt
upon the Group's ability to continue as a going concern.
The Directors do however remain confident in the business model and believe
the Group could be managed in a way to allow it to meet its ongoing
commitments and obligations through mitigating actions including cost saving
measures and securing alternative sources of funding should this be required.
On that basis, the Directors consider it is appropriate to prepare the interim
statement as a going concern and have not included the adjustments that would
result if the Group was unable to continue as a going concern.
Interim Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2023
Six months ended 30 September 2023 Six months ended 30 September 2022
Note £'000 £'000
Revenue 4 121 648
Cost of sales (17) (617)
Gross profit 104 31
Other operating income 5 36 220
Administrative expenses (1,353) (2,010)
Loss from operations (1,213) (1,759)
Finance expense 8 (5) -
Loss before taxation (1,218) (1,759)
Taxation 9 203 75
Loss for the period and total comprehensive loss for the period attributable (1,015) (1,684)
to the owners of the company
Basic and diluted loss per share (pence) 10 (0.7p) (1.2p)
The above results were derived from continuing operations.
There are no items of comprehensive income other than the loss for the period
and therefore, no statement of other comprehensive income is presented.
The accompanying notes form part of the financial statements.
Consolidated Statement of Financial Position
as at 30 September 2023
Unaudited Unaudited Audited
As at 30 September As at 30 September 2022 As at 31 March
2023 2023
Note £'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 161 97 144
Right-of-use assets 171 3 192
332 100 336
Current assets
Inventory 756 272 518
Trade and other receivables 11 624 1,425 1,285
Corporation tax receivable 534 278 478
Cash and cash equivalents 932 4,813 2,478
2,846 6,788 4,759
Total assets 3,178 6,888 5,095
EQUITY AND LIABILITIES
Capital and reserves
Issued capital 13 139 139 139
Share premium account 14 10,421 10,421 10,421
Merger reserve 3,401 3,401 3,401
Share option reserve 517 351 450
Accumulated losses (11,877) (8,840) (10,862)
Total equity 2,601 5,472 3,549
LIABILITIES
Non-current liabilities
Lease liability, non-current 165 - 154
165 - 154
Current liabilities
Trade and other payables 12 355 1,104 1,203
Contract liability 38 312 153
Lease liability, current 19 - 36
412 1,416 1,392
Total liabilities 577 1,416 1,546
Total Equity and Liabilities 3,178 6,888 5,095
The accompanying notes form part of the financial statements.
Interim Consolidated Statement of Changes in Equity
for the six months ended 30 September 2023
Issued capital Share premium account Merger Share option reserve Accumulated losses Total
reserve
£'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 April 2022 139 10,414 3,401 351 (7,156) 7,149
Total comprehensive loss for the period - - (1,684) (1,684)
- -
Issue of shares - 7 - - - 7
As at 30 September 2022 (Unaudited) 139 10,421 (8,840) 5,472
3,401 351
Total comprehensive loss for the period - - (2,022) (2,022)
- -
Share option charge - - - 99 - 99
As at 31 March 2023 139 10,421 3,401 450 (10,862) 3,549
Total comprehensive loss for the period - - (1,015) (1,015)
- -
Share option charge - - - 67 - 67
As at 30 September 2023
(Unaudited) 139 10,421 3,401 517 (11,877) 2,601
Issued capital and share premium account reflect the shares issued by the
Company to date.
The merger reserve represents a reserve arising on consolidation, as a result
of accounting for the share for share exchange in December 2021.
Share option reserve relates to the cumulative charges for share options.
Accumulated losses reflects the cumulative comprehensive losses of the
Company.
Consolidated Statement of Cash Flows
for the six months ended 30 September 2023
Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
Cash flows from operating activities
Loss after tax for the period (1,015) (1,684)
Adjustments for:
Taxation (203) (75)
Depreciation of property, plant & equipment 26 14
Depreciation of right-of-use asset 21 16
Share option charge 67 -
Finance expense 5 -
Tax credits received 146 -
Changes in working capital:
Increase in inventories (238) (166)
Decrease / (increase) in trade and other receivables 661 (308)
(Decrease) / increase in trade and other payables (963) 380
Net cash used in operating activities (1,493) (1,823)
Cash flows from investing activities
Purchase of property, plant, and equipment (44) (56)
Proceeds from sale of assets 2 -
Net cash used in investing activities (42) (56)
Cash flows from financing activities
Payment of lease liabilities (6) (12)
Share issue (net of issue costs) - 7
Finance expense (5) -
Net cash used in financing activities (11) (5)
Net change in cash and cash equivalents (1,546) (1,884)
Cash and cash equivalents at the beginning of the period 2,478 6,697
Cash and cash equivalents at the end of the period 932 4,813
Notes
1. General information and basis of preparation
Libertine Holdings PLC ("Libertine" or the "Company") is a company
incorporated and domiciled in the United Kingdom (registered number 13724783).
The Company was incorporated on 5 November 2021 and is a public company
limited by shares registered in England and Wales. The address of the
Company's registered office is 1 Coborn Avenue, Tinsley, Sheffield, S9 1DA.
The principal activity of the Company is that of investment holding. The
principal activity of the Group is the development of linear electrical
machines.
The Interim Statement should be read in conjunction with the Company's last
annual consolidated financial statements as at and for the year ended 31 March
2023.
The Interim Financial Statement has been prepared in accordance with UK
adopted international accounting standards and UK Companies Act 2006.
The financial information for the period ended 30 September 2023 and the
period ended 30 September 2022 is unaudited. The comparative financial
information for the period ended 31 March 2023 in this interim report does not
constitute statutory accounts for that period under 435 of the UK Companies
Act 2006.
2. Going Concern
The Interim Statement has been prepared on a going concern basis.
The Directors have undertaken a comprehensive assessment to consider the
Group's ability to trade as a going concern for a period of twelve months from
the date of approving the interim statement. As of 30 September 2023, the
Group had cash reserves of £0.9m, in addition to outstanding debtors of
£0.2m, inventories of £0.8m, corporation tax receivables due of £0.5m and
current liabilities of £0.4m.
The Directors have robustly tested the going concern assumption in preparing
the interim statement, taking into account the Group's liquidity position as
at 30 September 2023 and a number of severe but plausible downside scenarios,
which collectively would be considered remote. Absent of any additional
revenues, the Group has funds required to maintain current operations, through
to May 2024. The Group expects to secure new revenues and incomes within the
next 12 months which are more than sufficient to support approving the interim
statement as a going concern. The Directors acknowledge that uncertainty may
arise with respect to both the timing and quantum of additional revenues and
income. This indicates a material uncertainty which may cast significant doubt
upon the Group's ability to continue as a going concern.
The Directors do however remain confident in the business model and believe
the Group could be managed in a way to allow it to meet its ongoing
commitments and obligations through mitigating actions including cost saving
measures and securing alternative sources of funding should this be required.
On that basis, the Directors consider it is appropriate to prepare the interim
statement as a going concern and have not included the adjustments that would
result if the Group was unable to continue as a going concern.
3. Accounting policies
The principal accounting policies adopted in preparation of the Interim
Statement of the Group have been applied consistently to all periods
presented.
4. Revenue
Revenue arises from:
Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
North America 121 642
EMEA - 6
121 648
In the period ended 30 September 2023, one customer generated more than 10% of
total revenue (30 September 2022: one). Revenue attributable to the customer
was £115,000 (30 September 2022: £642,000).
Revenue by category:
Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
Engineering Services 121 648
121 648
5. Other Operating Income
Other operating income by category:
Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
Grant income 36 220
36 220
Government Grants
Grant income relates to government grant schemes aimed at supporting
industrial research and development to bring new products and technologies to
market and support the long-term sustainable growth of businesses. The Group
enters into grant schemes to provide funding towards the further development
of its technology platform.
6. Operating segments
IFRS 8 requires that operating segments be identified on the basis of internal
reporting and decision-making. The Company is operated as one business by its
executive team, with key decisions being taken by the same leaders
irrespective of the geography where work for clients is carried out.
Management therefore consider that the Company has one operating segment. As
such, no additional disclosure has been presented under IFRS 8.
7. Reconciliation of GAAP to non-GAAP measures
The Group uses several 'non-GAAP' figures as comparable key performance
measures, as they exclude the impact of items that are non-cash items and also
items that are not considered part of ongoing underlying trade. The Group's
'non-GAAP' measures are not defined performance measures in IFRS. The Group's
definition of the reporting measures may not be comparable with similar titled
performance measures in other entities.
Adjusted earnings before interest, tax, depreciation, and amortisation
("EBITDA") is calculated as follows:
Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
Loss from operations (1,213) (1,759)
Add back:
Depreciation of property, plant and equipment 26 14
Deprecation of lease asset 21 16
EBITDA and Adjusted EBITDA (1,166) (1,729)
There are no differences between both the loss from operations and loss after
tax, and the equivalent adjusted measures.
8. Finance expense
Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
Interest payable:
Interest on lease liability (5) -
(5) -
9. Taxation
Income taxes recognised in profit or loss Six months ended 30 September 2023 Six months ended 30 September 2022
£'000 £'000
Current tax
UK tax credit for the period 203 75
Deferred tax - -
Total income tax credit recognised 203 75
The Group was not liable for corporation tax during the past two periods due
to taxable losses being sustained in each of the periods reported. The tax
credit for the current period relates to research and development tax credits.
The Group has not recognised a deferred tax asset in respect of trading losses
incurred to date as the business is developing its products. When there is
clear visibility of profits, the Group will recognise the deferred tax assets
to the extent that sufficient taxable income will be available.
10. Loss per share
Six months ended 30 September 2023 Six months ended 30 September 2022
Basic loss per share
Loss attributable to equity shareholders of the parent (£'000) (1,015) (1,684)
Weighted average number of shares in issue 139,219,010 139,146,879
Basic loss per share (pence) (0.7p) (1.2p)
Basic loss per share is based on the weighted average number of ordinary
shares in issue during the period. Diluted loss per share would assume
conversion of all potentially dilutive ordinary shares arising from the share
schemes detailed in note 15. Due to the losses in both periods there are no
potentially dilutive ordinary shares, and therefore there is no difference
between the basic and diluted loss per share.
Adjusted loss per share
The calculation of adjusted loss per share is based on the adjusted loss after
tax, as per note 7. Adjusted earnings per share figures are given to exclude
the effects of exceptional items and pre-reorganisation finance costs, all net
of taxation, and are considered to show the underlying performance of the
Group.
Six months ended 30 September 2023 Six months ended 30 September 2022
Adjusted loss per share
Adjusted loss after tax (note 7) (£'000) (1,015) (1,684)
Weighted average number of shares in issue 139,219,010 139,146,879
Adjusted loss per share (pence) (0.7p) (1.2p)
11. Trade and other receivables
As at 30 September 2023 As at 30 September 2022
£'000 £'000
Current
Trade receivables - gross 225 47
Provision for impairment of trade receivables - -
225 47
Other Debtors 30 16
VAT Debtor 93 196
Prepayments 170 501
Accrued income 106 665
624 1,425
The Group had past due trade receivables of £88,000 as at 30 September 2023
(30 September 2022: £nil).
Trade receivables are non-interest bearing and receivable under normal
commercial terms. The Directors consider that the carrying amount of trade and
other receivables approximates to their fair value and that no impairment is
required at the reporting dates. Trade and other receivables represent
financial assets and are assessed for impairment on an expected credit loss
model. There is no expected credit loss provision for impairment at 30
September 2023 (30 September 2022: £nil).
The impairment loss recognised in the income statement for the period in
respect of expected credit losses was £nil (HY2022/23: £nil).
12. Trade and other payables
As at 30 September 2023 As at 30 September 2022
£'000 £'000
Trade payables 92 312
Tax and social security payable 32 48
Other payables - 23
Accruals 231 721
355 1,104
The fair values of the Company's trade and other payables are considered to
equate to their carrying amounts.
13. Share Capital
Ordinary Shares (£0.001)
Number £
At 30 September 2022 139,219,010 139,219
At 31 March 2023 139,219,010 139,219
At 30 September 2023 139,219,010 139,219
14. Share Premium Account
£'000
At 1 April 2022 10,414
Issued 7
At 30 September 2022 10,421
At 31 March 2023 10,421
At 30 September 2023 10,421
Share premium is the amount subscribed for share capital in excess of nominal
value.
15. Share-based payments
Since 2017, before the incorporation of Libertine Holdings PLC, options have
been granted by Libertine FPE Limited to Directors, employees and suppliers to
purchase Ordinary Shares. Libertine FPE Limited has issued both EMI and
unapproved share options. The options were due to vest over a period of up to
ten years from grant date and were exercisable in the event of a listing.
In February 2023, Libertine Holdings PLC implemented a new Long Term Incentive
Plan ("LTIP") for all employees. The initial number of options issued to all
employees of 7,182,314 are subject to the achievement of performance
conditions in respect of the three financial years to 31 March 2025.
Performance conditions are aligned to shareholder value creation and focus on
key financial and operational metrics, consistent with the Group's investment
case. The number of options achieved under the scheme will be determined by
the Remuneration Committee at the end of each financial year, and a maximum of
one third of the allocation can be achieved each year. The scheme is subject
to both good leaver / bad leaver provisions and malus / clawback provisions. A
one-year retention period for 50% of vesting options applies at the vesting
date.
The LTIP was issued as an EMI scheme. The EMI scheme is open to all qualifying
employees who are an employee within the Group working 25 hours per week, or
if less, at least 75% of their working time.
Details of the option plans are as follows:
As at 30 September 2023 As at 30 September 2022
Outstanding at beginning of period 11,846,037 6,908,120
Forfeited (915,989) -
Exercised - (400,000)
Outstanding at end of period 10,930,048 6,508,120
The weighted average exercise price on outstanding options at 30 September
2023 is £0.01 (30 September 2022: £0.02).
The expected volatility is based on the historical volatility (based on the
share price) of comparator companies with publicly available share prices. The
risk-free interest rate is based on the average return on ten-year UK gilts.
Assumed retention of the options was 100%.
The fair value of each option granted was estimated on the grant date using
the Black-Scholes option-pricing model with the following assumptions:
LTIP Scheme Pre-IPO EMI Scheme Pre-IPO Unapproved Scheme
Fair values at grant dates (per share) £0.18 £0.28 - £0.55 £0.28 - £0.46
Share price at grant dates £0.195 £0.47 - £0.64 £0.47 - £0.64
Exercise price £0.001 £0.02 £0.02
Expected volatility 67% 70% 70%
Option life (expected weighted average life) 3 years 1 - 10 years 0 - 2.8 years
Expected dividend 0% 0% 0%
Risk-free interest rate (based on government bonds)
1.61% 1.12% 1.12%
The total share option charge in the period was £67,000 (HY2022/23: £nil).
16. Events after the balance sheet date
No matters have arisen since the balance sheet date.
-ends-
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