REG - Libertine Holdings - Trading Update

Libertine HoldingsAnnouncement

01/09/2023 07:00

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RNS Number : 0242L  Libertine Holdings PLC  01 September 2023

1 September 2023

Libertine Holdings PLC

("Libertine" the "Company" or the "Group")

 

Trading Update

 

Libertine Holdings PLC (LSE AIM: LIB), a developer of Linear Generator
technology, today provides an update on trading and operations.

 

Libertine's work on the grant funded development with MAHLE Powertrain
supported by the Department for Business, Energy and Industrial Strategy
("BEIS") has completed, albeit later than originally scheduled. During the
programme Libertine has created a fuel-flexible performance validation
prototype Linear Generator ("LGN120-P1") and demonstrated initial combustion
performance using bioethanol. Further performance and durability developments
are now planned during Q3-Q4 2023 ahead of additional combustion testing on a
range of fuels during Q1 2024. The objective of this testing is to demonstrate
performance requirements for a number of OEM development programmes from
2024.  Given the supply chain constraints experienced during 2022, Libertine
has pre-funded the build of a small number of prototype hardware units which
are intended to support multiple OEM development programmes once the second
phase of intelliGEN combustion performance validation is complete.

 

Since the update provided to shareholders on 4 April 2023, Libertine has
completed Phase 1 of the engineering development with Hyliion Holdings Corp.
(NYSE: HYLN, "Hyliion") to support the integration of Libertine's HEXAGEN
linear generator technology platform into the first prototype KARNO powertrain
exhibited by Hyliion at the ACT Expo in Anaheim, California during May 2023.
As of 1 September 2023 the contract has entered into a 6-month Option Period
during which time Hyliion has the option to negotiate IP licensing rights with
Libertine to exploit the HEXAGEN technology.

 

A significant quantum of the Company's anticipated revenue for the current
financial year was projected to be derived from further fees from Hyliion and
should these not occur as originally anticipated, the Company's outcome for
the financial year would be materially below current market expectations.

 

As of 31 August 2023, the Group had cash reserves of £1.2m, in addition to
outstanding debtors of £0.2m and inventories of £0.6m. These cash reserves
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 technology platforms for OEM
customers and continues to receive commercial interest from a number of
customers across different applications and markets.

 

Sam Cockerill, Chief Executive of Libertine, commented: "We are pleased to
have both intelliGEN and HEXAGEN platform hardware generating positive test
results on a number of programmes. The time taken and costs incurred to reach
this stage have been greater than anticipated, and the timing of the second
phase of combustion testing at MAHLE Powertrain has been impacted by planned
developments to Linear Generator prototype hardware and test cell
infrastructure necessary for operation at higher power levels and for longer
durations in our next phase of combustion testing. These developments are
intended to meet the entry performance thresholds for multiple OEM programmes
expected to commence in 2024.

 

"Commercial interest in our intelliGEN technology for the decarbonisation of
heavy-duty vehicles and distributed power generation continues to remain
robust and we are making good progress with a number of OEM and end product
customers, who we anticipate will support the further development of the
technology."

 

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
 Simon Hudson                                         libertine (mailto:libertine@tavistock.co.uk) @tavistock.co.uk
                                                      (mailto:libertine@tavistock.co.uk)
 Rebecca Hislaire
 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(TM) 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.

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