REG - LifeSafe Holdings - Interim Results
26/09/2023 07:15
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RNS Number : 5755N LifeSafe Holdings PLC 26 September 2023
For immediate release 26 September 2023
LifeSafe Holdings plc
('LifeSafe', the 'Group' or the 'Company')
Interim Results for the six months ended 30 June 2023
Strong revenue growth and first industrial agreement achieves a significant
strategic milestone
LifeSafe (AIM:LIFS), a fire safety technology business with innovative fire
extinguishing fluids and fire safety products, reports its unaudited Interim
Results for the six months ended 30 June 2023 ('H1 2023' or 'the Period').
Financial highlights:
· Revenue more than doubled to £2.9 million (H1 2022: £1.3 million), already
72% of FY 2022 revenue and ahead of the Board's expectations
· Gross profit of £1.7 million at 57.8% margin (H1 2022: £0.7 million at 55.5%
margin)
· Underlying loss before interest, tax, depreciation and amortisation(1)
('underlying LBITDA') of £760,000 (H1 2022: underlying LBITDA of £681,000)
· Capitalised product development spend of £161,000 (H1 2022: £184,000)
· Cash and cash equivalents at 30 June 2023 of £24,000 (30 June 2022:
£22,000); £1.21 million subsequently raised through the Company's placing,
share subscription and retail offer in August 2023
· Net debt at 30 June 2023 of £440,000 (30 June 2022: net debt of £7,000)
Operational highlights:
· Introduction of Lithium Thermal Runaway Fluid ('TRF') in January 2023 at
Intersec, the world's leading event for emergency services, security and
safety
· Launched in the UK in April 2023 and in the US in July 2023 the StaySafe
All-in-1 fire extinguisher, specifically designed to tackle ten different
types of fire, replacing the successful StaySafe 5-in-1 fire extinguisher
Post-period highlights:
· First industrial partnership with Wormald Fire & Security, Australia's
biggest fire protection and safety business
· StaySafe All-in-1 launched in Screwfix 850 store chain in the UK and online in
September 2023
· Appointment to QBE Insurance Group's Solutions Panel in September 2023 as
best-in-class supplier of choice to their global client network
· On track to become EBITDA profitable on a monthly basis during Q4 2023
(1) Underlying LBITDA represents loss for the period before finance expense,
tax, depreciation and amortisation, and non-underlying items.
Commenting on the Interim Results, Dominic Berger, Chairman of LifeSafe, said:
"I am pleased to announce another positive set of financial results that
reflect the continued growth and development of our business, driven by our
dedicated team. Having listed on AIM just over 12 months ago, we have
consistently outperformed our financial and strategic targets, all whilst
ensuring that our potentially life-saving fire safety solutions are made
increasingly available to customers globally. Our IPO occurred in the early
stages of our growth and understanding of the market. It is safe to say we
know more now than we did then, but nonetheless we have and will continue to
learn and deliver on our journey.
"I am also delighted that we announced our first major partnership in the
development of our industrial strategy with Wormald in Australia. This
milestone is a long way ahead of our expectations even though we have been
working and testing with Wormald for over 18 months. We are excited about
how the partnership and endorsement of Wormald will now open a huge
opportunity in the bulk supply of our fluids through similar partnerships
globally.
"My thanks extend to the whole team at LifeSafe and the continued support of
our shareholders, both new and old. We remain on course to deliver on our
stated goals where every home should have a StaySafe and of being a global
disruptor and leader in fire safety fluids."
Investor presentation
An in-person meeting for sell-side analysts will be held at 9.30am today at
the offices of FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A
4HD. Please contact FTI Consulting via LifeSafe@fticonsulting.com
(mailto:LifeSafe@fticonsulting.com) if you wish to join the meeting.
The Company will also be hosting an online presentation for retail investors
to discuss the announcement on 27 September 2023 at 5.00pm. Please email
LifeSafe@fticonsulting.com (mailto:LifeSafe@fticonsulting.com) to register
your interest.
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
The person responsible for arranging the release of this announcement on
behalf of the Company is Mike Stilwell, Chief Financial Officer of the
Company.
For further enquiries:
LifeSafe Holdings plc Via FTI Consulting
Dominic Berger, Chairman info@lifesafet (mailto:info@lifesafetechnologies.com) echnologies
(mailto:info@lifesafetechnologies.com) .com
(mailto:info@lifesafetechnologies.com)
Neil Smith, Chief Executive Officer
Mike Stilwell, Chief Financial Officer
WH Ireland Limited (Nominated Adviser & Broker) Tel: +44 (0) 20 7220 1666
Chris Fielding
Darshan Patel
Isaac Hooper
FTI Consulting (Financial Communications) Tel: +44 (0) 20 3727 1000
Tom Hufton LifeSafe@fticonsulting.com (mailto:LifeSafe@fticonsulting.com)
Harriet Jackson
Liam Gerrard
Notes to Editors
LifeSafe is a fire safety technology business that develops eco-friendly,
novel and innovative fire extinguishing fluids and life-saving fire safety
products. LifeSafe has developed a market disrupting range of eco-friendly
fire safety protection products; a new patent-pending Thermal Runaway Fluid to
combat lithium battery fires by permanently extinguishing and preventing
re-ignition, and the StaySafe All-in-1, a handheld eco-friendly and fully
recyclable extinguisher which is verified to extinguish ten different types of
fire and the number one selling fire extinguisher on Amazon UK. LifeSafe is
successfully creating new markets for the Group in fire safety through its
innovative technologies, products, digital marketing and multi-channel sales;
and is continuing to develop new fluid derivations for applications in various
industrial market sectors.
LifeSafe was admitted to trading on AIM in July 2022 with the ticker LIFS.
For further information please visit: https://www.lifesafeholdingsplc.com
(https://www.lifesafeholdingsplc.com/) .
LinkedIn: https://www.linkedin.com/company/lifesafe-technologies
(https://www.linkedin.com/company/lifesafe-technologies)
Twitter: https://twitter.com/LifesafeT (https://twitter.com/LifesafeT)
Chairman's Statement
Business Review
I am delighted to report on the continued strong operational and strategic
progress made by the Group in H1 2023. This progress is all the more
significant considering it is just over a year since the Group was admitted to
AIM and was able to access the funds required to progress the
commercialisation of LifeSafe's core product containing its proprietary fire
extinguishing fluid.
At almost £3 million, our revenue for H1 2023 represents 72% of that achieved
in the whole of 2022 and is ahead of the Board's expectations. The StaySafe
All-in-1 remains the number one best-selling fire extinguisher on Amazon UK.
What is particularly impressive, however, is at the same time as managing this
considerable growth in the consumer channel, the LifeSafe team developed and
launched the new StaySafe All-in-1 in the UK and US consumer markets and,
subsequent to the Period end, achieved the significant strategic milestones of
signing LifeSafe's first industrial partnership agreement with Wormald Fire
& Security with the Group's new fluorine free lithium thermal runaway
fluid and being appointed to QBE Insurance Group's Solutions Panel.
The industrial partnership with Wormald represents a key strategic development
which could have only been achieved through the exceptional progress made in
the consumer market and lays the foundations to access the enhanced margins of
bulk fluid supply and international distribution agreements, which avoid many
of the costs inherent in the direct consumer supply model.
I reaffirm that the Group remains firmly on track in executing its strategy to
build a multi-channel, international fire safety business capable of
delivering significant long-term value for our shareholders.
Results
LifeSafe's revenue for H1 2023 more than doubled to £2.9 million, compared
with £1.3 million in the same period last year as the commercialisation of
the Company's innovative, market disrupting eco-friendly fire extinguishing
proposition continued ahead of the Board's expectations. Sales increased
both in the UK, through the introduction of the StaySafe All-in-1 fire
extinguisher, and in the US, with a full six months sales of the StaySafe
5-in-1 fire extinguisher since its introduction in the US market during H1
2022.
Gross profit for H1 2023 increased significantly to £1.7 million (H1 2022:
£0.7 million) at a gross margin of 57.8% (H1 2022: 55.5%), in line with the
Board's expectations despite the strengthening of sterling against the US
dollar during the Period compared to the budgeted rate.
Underlying administrative expenses for H1 2023 increased to £2.5 million (H1
2022: £1.4 million) as the Group invested in digital marketing to drive sales
with a corresponding increase in logistics costs, particularly in the US, and
invested operationally in resource to address the increasing demands of supply
chain, customer service and financial management.
The Group made an underlying loss before interest, tax, depreciation and
amortisation(1) ('LBITDA') of £760,000 (H1 2022: £681,000) before
non-underlying share-based payment charges of £413,000 (H1 2022:
non-underlying items of £895,000 comprising IPO costs and share-based payment
charges).
Finance expenses of £23,000 were recorded in the Period (H1 2022: £573,000,
of which £569,000 related to non-underlying interest on convertible loan
notes which subsequently converted to equity on Admission to AIM).
The Group made an underlying loss before tax(2) of £849,000 (H1 2022: loss of
£733,000). After charging £413,000 for non-underlying costs in relation to
share-based payment charges (H1 2022: total non-underlying charges of
£1,464,000), the consolidated loss before tax for the Period was £1.3
million (H1 2022: loss of £2.2 million).
The basic and diluted earnings per share were (£0.06) (H1 2022: (£0.14)).
Cash and cash equivalents as at 30 June 2023 were £24,000 (H1 2022:
£22,000). £1.21 million was subsequently raised through the Company's
placing, share subscription and retail offer in August 2023 (described
below). Net debt at 30 June 2023 was £440,000 (30 June 2022: net debt of
£7,000).
Inventory at 30 June 2023 amounted to £1.0 million (30 June 2022: £0.3
million) as stock was procured in advance of expected demand to ensure this
could be satisfied during the seasonally-stronger second half of the year,
particularly for stock shipping to the US market. In 2022, 68% of the
Company's revenue was generated in H2 2022, highlighting the importance of
front-loading inventory to maintain product availability. The inventory
balance reduced to £0.9 million at 31 August 2023 as stock began to be worked
through.
Trade and other receivables at 30 June 2023 amounted to £436,000 and included
£154,000 in relation to taxation subsequently received after the Period end
(30 June 2022: £3.2 million, of which £3.0 million were committed
subscriptions to the Company's placing of shares and Admission to AIM on 6
July 2022).
Trade and other payables at 30 June 2023 amounted to £782,000 and included
£515,000 of trade creditors reflecting stock delivered in advance of the
expected seasonally higher demand in H2 2023 (30 June 2022: £1,583,000,
including IPO costs of £984,000 which were paid subsequently).
Borrowings at 30 June 2023 amounted to £464,000 (30 June 2022: £29,000) and
included balances of £22,000 in relation to a Coronavirus Bounce Back Loan,
£142,000 in relation to a supplier invoice finance facility announced on 31
March 2023 and originally drawn at £250,000 with final repayments on 31
October 2023, and £250,000 in relation to a trade finance facility announced
on 5 June 2023 repayable in full on 30 October 2023.
(1) Underlying LBITDA represents loss for the period before finance expense,
tax, depreciation and amortisation, and non-underlying items.
(2) Underlying loss before tax represents loss for the year before tax and
non-underlying items.
Post balance sheet placing, share subscription and retail offer of shares
On 3 August 2023, the Company announced a placing and share subscription at
£0.37 per share to raise approximately £0.94 million and £0.14 million,
respectively, and up to £0.25 million through a retail offer. The placing
was conducted in two tranches and resulted in the issue of 1,637,565 shares on
9 August 2023 and 936,900 on 22 August 2023, raising gross proceeds of £0.95
million. The share subscription resulted in the issue of 378,378 shares on 9
August 2023 raising gross proceeds of £0.14 million. The retail offer
resulted in the issue of 315,090 shares on 25 August 2023 raising gross
proceeds of £0.12 million. In total 3,267,933 shares were issued through
the placing, share subscription and retail offer, raising gross proceeds of
£1.21 million and taking the number of shares in issue to 25,375,983. The
costs of issue amounted to £0.13 million.
We are grateful for the support of both new and existing shareholders, whose
investment will be used to maximise the business opportunity in front of us.
Research and development, technology and intellectual property
Since the beginning of 2023, the Company has made a number of significant
announcements as a result of accelerating the development of its strong
pipeline of innovative new products and fluid derivatives in response to
industry demand.
LifeSafe's Lithium TRF was announced in December 2022 and introduced to the
industry in January 2023 at Intersec Dubai, the world's leading event for
emergency services, security and safety. Lithium TRF, a variant of the
Group's core eco-friendly patented fluid, is a new non-toxic, non-hazardous
and fluorine free fluid designed to permanently extinguish and prevent the
re-ignition of lithium battery fires. The Group has submitted UK and
international patent applications to protect its innovation.
In April 2023, the new StaySafe All-in-1 fire extinguisher was launched in the
UK featuring the Group's next generation fluid. The StaySafe All-in-1 is
specifically designed to tackle ten different types of fire, replacing the
Group's successful debut product, the StaySafe 5-in-1. The StaySafe All-in-1
was launched in the US in July 2023 and in the Screwfix chain of 850 stores in
the UK and on its website in September 2023. The Group has submitted UK and
international patent applications to protect its innovation.
The Group's fluorine free derivatives of its existing fluids have been
developed in response to European legislation which, from July 2025, will ban
the use of fire-fighting foam containing perfluorooctanoic acid ('PFOA').
This follows similar legislation in North America and Australia. The global
market for soon to be banned foam extinguishers is valued at $1 billion per
year (source: Grandview Research) representing a significant opportunity for
LifeSafe.
The Group's fluorine free fluids provide an environmentally friendly solution
to future proof portable and fixed fire extinguishing solutions ahead of the
2025 deadline and have been endorsed and chosen by Wormald Fire & Security
which entered into a distribution agreement in Australia for LifeSafe's TRF in
September 2023. Wormald is a leading provider of fire protection services in
Australia with a 130-year heritage and was valued at US$1bn in 1990 when
bought by Tyco. In 2016, Wormald was acquired by Evergreen Capital, LP, a
New York based investment firm.
Capitalised expenditure on technology development during the six-month period
amounted to £161,000 (H1 2022: £184,000).
LifeSafe's intellectual property is protected through the grant of two patents
and patent applications for eight further fluid derivations across the UK and
internationally.
The Board recognises the importance of protecting its intellectual property
and rigorously guards its innovation. The Group employs an intellectual
property attorney to protect its interests and has intellectual property
defence and pursuit insurance to protect its investments.
Strategic partnerships
The Group announced earlier today the significant strategic milestone of
signing its first industrial partnership agreement with Wormald Fire &
Security. Under the strategic partnership agreement, LifeSafe will supply
its new fluorine free, lithium ion TRF fire extinguishing fluid exclusively in
Australia to Wormald for use in their range of fire safety equipment. In
addition to the expected revenue benefits from the distribution of the Group's
fluids, Wormald has provided LifeSafe with crucial introductions and expertise
in helping to access other geographies and market sectors.
LifeSafe has also recently been appointed to QBE Insurance Group's Solutions
Panel. The appointment represents the culmination of 14 months assessment
and testing of the Group's range of fire extinguishing fluids and products.
As well as generating revenue directly from recommendations to its customer
base, QBE's powerful endorsement of the Group's fluids will be invaluable in
building trust and credibility in the conversion of LifeSafe's growing
industrial sales pipeline.
Outlook
As previously communicated, our laser focus so far in 2023 has been in
continuing to grow consumer market penetration across all territories using
our tried and tested digital marketing strategies. I am delighted that our
significant revenue growth in H1 2023 demonstrates this has been achieved.
Our recent fundraise has provided the working capital to satisfy this
greater than expected growth by ensuring that sufficient stock is available,
and in the right place at the right time, to meet the expected
seasonally-weighted demand in H2 2023.
We remain confident that we will achieve EBITDA profitability on a monthly
basis during Q4 2023 despite the marketing and logistics costs required to
deliver the sales growth. We are looking forward to further scaling the
consumer business in 2024 and enhancing our margins by commencing production
in the US. Given the seasonally-weighted second half of the year, management
forecasts for 2023 year remain unchanged at this stage.
What is particularly exciting is the excellent progress we have made in
achieving the strategic milestone of signing the first industrial partnership
agreement with Wormald Fire & Security and our appointment to QBE
Insurance Group's Solutions Panel. This lays the foundations to accessing
the enhanced margins of bulk fluid supply and international distribution
agreements, which achieve sales without the scale of marketing, commission or
logistics costs inherent in the direct-to-consumer supply model. It is the
evolution of LifeSafe as a recognised, leading fluid technology business which
will unlock the highest long-term value for shareholders but would be
impossible without the credibility and scale generated by the digital first
consumer model which has resonated in the wider business-to-business fire
safety market.
Notwithstanding the still huge and untapped addressable market in the consumer
channel, the Board is very excited about these recent industry endorsements
and expects them to be the first of many potential game-changing opportunities
in the industrial supply of LifeSafe's fluids. As such, the Group is well
placed to drive further growth and is confident of delivering shareholder
value.
Dominic Berger
Chairman
26 September 2023
Consolidated statement of profit or loss and other comprehensive income
For the six months ended 30 June 2023
(Unaudited) (Unaudited) (Audited)
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
Note Non-underlying items Non-underlying items Non-underlying items (note 5)
Before non-underlying items (note 5) Before non-underlying items (note 5) Before non-underlying items £000
£000 £000 £000 £000 £000
Total Total Total
£000 £000 £000
Revenue 3 2,890 - 2,890 1,277 - 1,277 4,028 - 4,028
Cost of sales (1,220) - (1,220) (568) - (568) (1,732) - (1,732)
Gross profit 1,670 - 1,670 709 - 709 2,296 - 2,296
Administrative expenses (2,496) (413) (2,909) (1,438) (895) (2,333) (3,676) (1,415) (5,091)
Loss from operations (826) (413) (1,239) (729) (895) (1,624) (1,380) (1,415) (2,795)
Finance expense 6,5 (23) - (23) (4) (569) (573) (5) (187) (192)
Loss before tax (849) (413) (1,262) (733) (1,464) (2,197) (1,385) (1,602) (2,987)
Taxation 7 (52) - (52) - - - 173 - 173
Loss for the period (901) (413) (1,314) (733) (1,464) (2,197) (1,212) (1,602) (2,814)
Other comprehensive income
Total other comprehensive income - - - - - - - - -
Total comprehensive expense (901) (413) (1,314) (733) (1,464) (2,197) (1,212) (1,602) (2,814)
Basic and diluted loss per share (£) 8 (0.06) (0.14) (0.15)
All amounts relate to continuing activities.
Consolidated statement of financial position
As at 30 June 2023
Note
(Unaudited) (Unaudited) (Audited)
30 June 2023 £000
30 June 2022 £000
31 Dec 2022 £000
Non-current assets
Intangible assets 580 302 483
Property, plant and equipment 12 9 10
592 311 493
Current assets
Inventories 1,025 329 442
Trade and other receivables 9 436 3,230 659
Cash and cash equivalents 10 24 22 1,166
1,485 3,581 2,267
Total assets 2,077 3,892 2,760
Current liabilities
Trade and other payables 11 (782) (1,583) (1,002)
Convertible loan notes 12 - (1,699) -
Borrowings 13 (449) (7) (7)
Other provisions (24) (31) (24)
(1,255) (3,320) (1,033)
Non-current liabilities
Borrowings 13 (15) (22) (19)
(15) (22) (19)
Total liabilities (1,270) (3,342) (1,052)
Net assets 807 550 1,708
Equity attributable to equity holders of the Parent
Called up share capital 14 221 154 221
Share premium account 15 4,152 250 4,152
Share-based payment reserve 15 1,270 241 857
Convertible loan note reserve 15 - 354 -
Shares to be issued reserve 15 - 2,633 -
Retained earnings 15 (4,836) (3,082) (3,522)
Total equity 807 550 1,708
Consolidated statement of changes in equity
For the six months ended 30 June 2023
Called up Share Share-based payment Convertible loan note reserve £000
share premium reserve Retained
capital account £000 earnings Total equity
£000 £000 £000 £000
Balance at 1 January 2022 (Audited) 3 4,627 114 171 (5,241) (326)
Comprehensive income
Loss for the year - - - - (2,814) (2,814)
Share-based payments - - 630 - - 630
Issue of warrants - (113) 113 - - -
Transactions with owners:
Bonus issue of shares 151 - - - (151) -
Cancellation of share premium - (4,464) - - 4,464 -
Shares issued for cash 40 3,047 - - - 3,087
Share issue costs - (368) - - - (368)
Convertible loan notes issued - - - 183 - 183
Convertible loan notes exercised 27 1,423 - (354) 220 1,316
Balance at 31 December 2022 (Audited) 221 4,152 857 - (3,522) 1,708
Balance at 1 January 2023 (Audited) 221 4,152 857 - (3,522) 1,708
Comprehensive income
Loss for the period - - - - (1,314) (1,314)
Share-based payments - - 413 - - 413
Balance at 30 June 2023 (Unaudited) 221 4,152 1,270 - (4,836) 807
Consolidated statement of cash flows
For the six months ended 30 June 2023
(Unaudited) (Unaudited) (Audited) Year ended
Six months ended
Six months ended
31 Dec 2022 £000
30 June 2023 £000
30 June 2022 £000
Note
Cash flows from operating activities
Loss before taxation from continuing operations (1,262) (2,197) (2,987)
Adjustments for non-cash/non-operating items:
Depreciation of property, plant and equipment 1 1 2
Amortisation of intangible assets 65 47 90
IPO costs - - 727
Equity-settled share-based payments 413 170 630
Finance expense 22 569 192
Operating cash flows before movements in working
capital (761) (1,410) (1,346)
Increase in inventories (520) (139) (252)
Decrease/(increase) in trade and other receivables 67 (463) (357)
(Decrease)/increase in trade and other payables (218) 1,321 734
Cash used in operations (1,432) (691) (1,221)
Corporation tax received 81 - -
Net cash used in operating activities (1,351) (691) (1,221)
Cash flows used in investing activities
Purchase of intangibles (161) (184) (408)
Purchase of property, plant and equipment (4) - (1)
Net cash used in investing activities (165) (184) (409)
Cash flows from financing activities
Shares issued for cash (net of expenses) - 87 1,993
Proceeds from borrowings 505 - -
Repayment of borrowings (118) (4) (7)
Proceeds from issue of convertible loans - 750 750
Other interest paid (13) - (4)
Net cash generated by financing activities 374 833 2,732
Net (decrease)/increase in cash and cash equivalents (1,142) (42) 1,102
Cash and cash equivalents at the beginning of period 1,166 64 64
Cash and cash equivalents at the end of period 10 24 22 1,166
Notes to the unaudited condensed interim consolidated financial statements
1. General information
These consolidated interim financial statements were approved by the Board of
Directors on 26 September 2023.
2. Basis of preparation
These unaudited consolidated interim financial statements of the Group are for
the six months ended 30 June 2023.
The condensed consolidated interim financial statements for the six months to
30 June 2023 do not include all the information and disclosures required in
the annual financial statements and have not been audited or reviewed by an
auditor pursuant to the Auditing Practices Board guidance on Review of Interim
Financial Information. However, selected explanatory notes are included to
explain events and transactions that are significant for an understanding of
the changes in the Group's financial position and performance in the period.
The condensed consolidated interim financial statements for the six months to
30 June 2023 have been prepared on the basis of the accounting policies
expected to be adopted for the year ending 31 December 2023. These
accounting policies are drawn up in accordance with adopted International
Accounting Standards ('IAS') and International Financial Reporting Standards
('IFRS') as issued by the International Accounting Standards Board and adopted
by the EU.
AIM-listed companies are not required to comply with IAS 34 'Interim Financial
Reporting' and accordingly the Company has taken advantage of this exemption.
3. Revenue from contracts with customers
Geographic reporting (Unaudited) (Unaudited) (Audited)
Six months
Six months
Year
ended
ended
ended
30 June 2023 30 June 2022
£000
£000 31 Dec 2022
£000
Revenue
United Kingdom 806 631 1,451
North America 2,067 561 2,372
Europe 17 85 180
Rest of the World - - 25
2,890 1,277 4,028
During H1 2023 the Group's supply chain resources were focussed on satisfying
the increasing demand in the UK and the US. A new production partner for the
European market has been sourced with increased sales expected in H2 2023.
4. Segmental reporting
The Chief Operating Decision Maker ('CODM') has been determined to be the
Board of Directors. The CODM reviews the Group's internal reporting in order
to assess performance and allocate resources. The CODM has determined that
there is one single operating segment being the sale of fire extinguishing and
related products. Information concerning geographical revenue is disclosed
in note 3.
5. Non-underlying items
(Unaudited) (Unaudited) (Audited)
Six months
Six months
Year
ended
ended
ended
30 June 2023 30 June 2022
£000
£000 31 Dec 2022
£000
Share-based payment charges 413 170 630
IPO costs - 725 727
Other non-underlying costs - - 58
Within administrative expenses 413 895 1,415
Convertible loan note interest - 569 187
Within finance expense - 569 187
413 1,464 1,602
Share-based payment charges
The Group operates equity-settled share-based remuneration schemes for
employees. The terms and conditions of the grants are detailed below:
No. of Contractual life
Date of grant options Exercise price (£) Vesting conditions of options
30 September 2021(1) 1,495,650 0.48 IPO 10 years
11 October 2021(1) 1,645,200 0.48 IPO/market capitalisation 10 years
29 March 2022(1) 1,645,200 0.16 12 months from admission date 10 years
26 July 2022 1,167,301 0.75 Total shareholder return 10 years
13 October 2022 974,965 0.75 Total shareholder return 10 years
(1) The number of share options granted, and the corresponding exercise price,
are shown after the Company's 49 for 1 bonus issue of shares on 9 May 2022.
6. Finance expense
(Unaudited) (Unaudited) (Audited)
Six months
Six months
Year
ended
ended
ended
30 June 2023 30 June 2022
£000
£000 31 Dec 2022
£000
Interest on bank loans 1 4 5
Interest on convertible loan notes - 569 187
Interest on other loans 22 - -
23 573 192
7. Income tax expense
No income has yet been recognised in H1 2023 in relation to R&D tax
credits available from HMRC through the SME R&D relief scheme for 2023.
The charge of £52,000 in the Period relates to an adjustment to the R&D
tax credit estimate for 2022 recognised in the year ended 31 December 2022.
8. Loss per share
Loss per share is calculated as follows:
(Unaudited) (Unaudited) (Audited)
Six months
Six months
ended
ended Year
30 June 2023 30 June 2022 ended
31 Dec 2022
Basic and diluted loss per share (£) (0.06) (0.14) (0.15)
The calculations of basic and diluted loss per share are based upon:
Loss for the period attributable to owners of the Parent (£000) (1,314) (2,197) (2,814)
Weighted average number of ordinary shares 22,108,050 15,391,302 18,666,870
The calculation of the basic loss per share is based on the results
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period.
The weighted average number of shares in issue is used as the denominator in
calculating the basic loss per share. As the Group is loss making the effect
of instruments that convert into ordinary shares is considered anti-dilutive,
hence there is no difference between the diluted and non-diluted loss per
share.
9. Trade and other receivables
(Unaudited) (Unaudited) (Audited)
30 June 2023 30 June 2022 31 Dec 2022
£000
£000
£000
Amounts falling due within one year:
Trade receivables 24 19 17
Other receivables 119 3,061 160
Taxation and social security 154 140 326
Prepayments and accrued income 139 10 156
436 3,230 659
Other receivables at 30 June 2022 included £3,000,000 of committed
subscriptions to the Company's placing of shares and Admission to AIM on 6
July 2022. The committed subscriptions were in the form of irrevocable
placing letters held by the Company's Broker and Nominated Adviser.
10. Cash and cash equivalents
(Unaudited) (Unaudited) (Audited)
30 June 2023 30 June 2022 31 Dec 2022
£000
£000
£000
Cash at bank available on demand 24 22 1,166
24 22 1,166
11. Trade and other payables
(Unaudited) (Unaudited) (Audited)
30 June 2023 30 June 2022 31 Dec 2022
£000
£000
£000
Trade payables 515 513 665
Other payables 2 110 61
Accruals and deferred income 113 896 181
Other taxation and social security 152 64 95
782 1,583 1,002
Trade payables and accruals and deferred income at 30 June 2022 included
£984,000 of IPO costs paid after that date.
12. Convertible loan notes
(Unaudited) (Unaudited) (Audited)
30 June 2023 30 June 2022 31 Dec 2022
£000
£000
£000
Amounts falling due within one year:
Convertible loan notes - 1,699 -
- 1,699 -
On Admission to AIM on 6 July 2022, all outstanding convertible loans
converted to equity with the Company issuing 2,716,550 ordinary shares to the
providers of all convertible loans outstanding at 30 June 2022.
13. Borrowings
(Unaudited) (Unaudited) (Audited)
30 June 2023 30 June 2022 31 Dec 2022
£000
£000
£000
Current:
Bank loans 7 7 7
Other loans 442 - -
Non-current:
Bank loans 15 22 19
464 29 26
Bank loans comprise a Coronavirus Bounce Back Loan Scheme loan provided by
HSBC. The loan was taken out in May 2020 and matures five years after this
date.
Other loans include £142,000 in relation to a supplier invoice finance
facility announced on 31 March 2023 and originally drawn at £250,000 with
final repayments on 31 October 2023, and £250,000 in relation to a trade
finance facility announced on 5 June 2023 repayable in full on 30 October
2023.
14. Share capital
(Unaudited) (Unaudited) (Audited)
30 June 2023 30 June 2022 31 Dec 2022
£000
£000
£000
Allotted, called up and fully paid
Ordinary shares of £0.01 each 221 154 221
221 154 221
Called up share capital
Called up share capital represents the nominal value of shares that have been
issued.
All classes of shares have full voting, dividends, and capital distribution
rights.
Further to the Period end, the Company issued 3,267,933 ordinary shares taking
the number of shares in issue to 25,375,983 (see note 16).
15. Reserves
Share premium account
This represents the excess value recognised from the issue of ordinary shares
above nominal value.
Share-based payment reserve
This represents the cumulative fair value of share options charged to the
consolidated statement of comprehensive income net of the transfers to the
profit and loss reserve on exercised and cancelled/lapsed options.
Retained earnings
This represents cumulative net gains and losses less distributions made.
16. Post balance sheet events
On 3 August 2023, the Company announced a proposed placing and share
subscription at £0.37 per share to raise approximately £0.94 million and
£0.14 million respectively, and up to £0.25 million through a retail offer.
The proposed placing was conducted in two tranches and resulted in the issue
of 1,637,565 shares on 9 August 2023 and 936,900 on 22 August 2023, raising
gross proceeds of £0.95 million. The share subscription resulted in the
issue of 378,378 shares on 9 August 2023 raising gross proceeds of £0.14
million. The retail offer resulted in the issue of 315,090 shares on 25
August 2023 raising gross proceeds of £0.12 million.
In total 3,267,933 shares were issued through the placing, share subscription
and retail offer, raising gross proceeds of £1.21 million and taking the
number of shares in issue to 25,375,983. The costs of issue amounted to
£0.13 million.
On 22 August 2023, a General Meeting of the Company was held in which the
Directors obtained authority to allot certain of the placing and retail offer
shares. In addition to this specific authority, the Board also obtained the
approval of shareholders to give the Directors the additional general
authority to freely allot up to 10% of the enlarged share capital.
17. Availability
Further copies of this interim announcement are available on the LifeSafe
Holdings plc investor relations website, www.lifesafeholdingsplc.com
(http://www.lifesafeholdingsplc.com) .
- Ends -
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