REG - Ocean Harvest Tech. - Interim Results
30/09/2024 07:00
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RNS Number : 1621G Ocean Harvest Technology Group PLC 30 September 2024
Ocean Harvest Technology Group Plc ("OHT or "the Company")
Interim Results for six months ended 30 June 2024
Ocean Harvest Technology Group Plc (AIM: OHT), specialists in researching,
developing and selling seaweed and ancillary products, announces its unaudited
results for the six month period ended 30 June 2024 ("the Period").
The Interim Report for the period ended 30 June 2024 will be published on the
Company's website today at www.oceanharvesttechnology.com
(http://www.oceanharvesttechnology.com) .
Financial Highlights
· Reported revenue down 46% to €0.95 million (H1 2023 €1.75
million). Significantly impacted by both OHT's largest OceanFeed customer and
largest single seaweed customer of 2023 not ordering in the period
· Gross margin 34.4% (H1 2023 35.8%) with underlying margin up
year-on-year excluding loss-making sale of aged single seaweed inventory
· Adjusted EBITDA loss of €1.7 million (H1 2023 loss of €1.2
million) through lower revenue and gross profit
· Cash and cash equivalents at 30 June 2024 €1.1 million (30 June
2023 €4.7 million). The Company has €2.7 million of other current assets
including €1.7million of inventory at period end
· Additional funding of £1.5 million announced separately today
(as detailed below), providing the resource to drive significant revenue
growth into 2025
Operational Highlights
· New Chief Commercial Officer Nico Stein joined OHT in Q1 and
launched new sales and marketing strategy in Q2
· Onboarding of two new Pet customers and further two multi-species
distributors in Europe, new multi-species distributor in Latin America and an
Aqua customer in India all having placed orders in the Period
· Increasing investment in sales team with additional sales
resource added in LAM and APAC regions with further headcount growth planned
for late 2024 and early 2025
· Patent granted covering a wide range of claims about the benefits
of using the Company's OceanFeed product in the diets of a range of animals
· Positive commercial scale sow trial results delivered
demonstrating 5% profitability improvement for customers using OceanFeed Swine
Post-period Highlights
· On 4 September 2024 the Company announced that Ashley Head was
appointed as Executive Chairman with immediate effect. After two years as CEO,
Mark Williams stepped down from the Board and the Company will look to
strengthen the Board and Executive team in the coming months
· In August 2024 the Company's largest OceanFeed customer resumed
ordering and OHT continue to have a strong relationship with this substantial
feed producer and broiler integrator
· Currently in discussion with several potential distributors in
South America and Asia
· As announced separately today, the Company has conditionally
raised £1.5 million, before expenses, by way of the issue of Secured Loan
Notes and Warrants to certain existing Shareholders. The net proceeds will be
used to meet the Company's immediate working capital requirements and provide
the capital to drive significant revenue growth into 2025
Conclusion and Outlook
· Reflecting the impact on FY 2024 of existing customer ordering
patterns and slower onboarding of new customers, the Company now expects to
report full year revenue of approximately €2.4 million. Within that there is
an expectation of positive organic revenue growth in OceanFeed excluding the
one year impact from the largest customer
· Gross margin from the sale of OceanFeed is expected to continue
to increase and is expected to be over 40% for the full year with total
margins expected to be over 37%
· The Company is adequately funded through the loan note facility
announced today which gives it sufficient capital (alongside the receivables
purchase facility it put in place at the start of 2024) to drive significant
revenue growth into 2025.
Ashley Head, Executive Chairman of Ocean Harvest Technology Group, commented:
"Despite the challenging first half of FY24 the Period has been one of
positive change for OHT with the Company now being on a solid footing looking
ahead to 2025 and beyond. Trial data remains very positive and are pleased
to see the resumption of regular ordering from our largest customer who remain
an enthusiastic user of OceanFeed. The loan note facility provides the Company
with the financial stability it needs to continue to implement the sales
initiatives which the Board expect to drive revenue growth and improvements in
margin going forward. We look forward with great confidence in our product and
expect to return to significant growth into 2025."
Executive Chairman's Statement
The first half of 2024 has been one of disappointing performance and important
change for OHT to lay the groundwork for stronger performance in future. The
Board identified that the sales and marketing strategy required change and
improvement in order to enable OHT to deliver on the strong growth potential
that it believes it has. The performance in H1 has also highlighted some of
the weaknesses in the Company's prior business model, particularly around
customer concentration and long sales cycles that these changes are intended
to address. This has involved Board and management changes and the
implementation of multiple new sales and marketing initiatives. The initial
results are encouraging, however, the benefits of these changes take time to
flow through and hence the Company is reporting a disappointing set of
financial results for 1H 2024.
Sales strategy
The Company announced in January that Nico Stein was appointed as the new
Chief Commercial Officer for the Company. Subsequently, a number of the
existing sales team have been replaced, the Company has successfully recruited
two new sales people in Latin America and South East Asia and is planning
further additions, particularly in Europe. The Company is rapidly expanding
the number of countries it is in a position to sell into and will continue to
deepen and broaden the reach of the team in the coming months.
OHT has identified specific regions and segments of the global animal
nutrition market where it believes it has the greatest near term growth
potential and has increased its resources focussed on those opportunities.
OHT has also increased its use of indirect sales channels in a number of
regions to help it effectively access a wider geographic area and, where
appropriate, more mid and smaller sized customers. It is expected that this
will also help to reduce the concentration of the company's customer base.
Four new distributors have been added year to date with additional customers
expected in the coming months. The Company has been very pleased by the level
of interest shown by a wide variety of distributors that it has been engaging
with and looks forward to supporting their sales efforts going forward.
A key focus is on commercialising at scale the strong performance data that
the company has announced with regards to egg laying hens, and subsequent to
the period end, sows. Whilst for many customers using OceanFeed is their first
experience with seaweed, in the Companion Animals sector the use of individual
seaweeds is more established, particularly for dogs and horses. Here the sales
strategy is focused on highlighting the many benefits that our products have
relative to existing seaweeds that are typically used, particularly lower
levels of heavy metals and Iodine. As noted below, we are already starting to
see some of those efforts pay off and look forward to reporting further
progress on this at the full year results in March 2025.
The Board believes that these changes and improvements will enable OHT to
capitalise on its enormous potential from the growing demand for sustainable
and natural ingredients which improve the profitability and sustainability of
feeding production animals. OceanFeed has demonstrated benefits when used in
multiple species of production animals through improved growth rates and feed
conversion efficiency and lower mortality rates. OceanFeed also has a lower
carbon footprint than additives produced from land-based plants and generates
economic benefits in the communities where our seaweed raw material is
harvested.
Whilst the benefits of these initiatives are not immediate, the Company has
seen a number of early benefits including the onboarding of three new pet food
customers in Europe which are using OceanFeed as a replacement for traditional
single seaweed products in their recipes, the onboarding of a Greek
distributor with initial new customers in Poultry and Aqua, and the shipment
of Aqua and Bovine product to a new customer in India. The Company is also
finalising arrangements with several new European distributors and a Central
American distributor based in Mexico, who covers Central America more broadly,
and has made the first shipment of OceanFeed products to that region.
The continuing increase in OHT's gross margin % is further tangible evidence
that OHT's OceanFeed product is attracting customer support.
Supply Chain and R&D
Through the period the Company has significantly reduced the volume of seaweed
it has purchased in line with the lower than expected sales volumes. OHT has
been actively engaged with its suppliers through the Period to ensure the
strong developments it has made in expanding its seaweed supply chain in
recent years can be maintained. With the recent traction from the revised
sales and marketing initiatives and an improved sales volume outlook relative
to H1, OHT is confident that it will be able to keep its seaweed supply chain
operating and build up again to the previous volumes that it had been
sourcing.
The Company has continued to make strong progress in its research trials and
other intellectual property development. A summary of the achievements during
the first half of 2024 include:
· The completion in June of a large, commercial scale trial in sows
and the piglets from their litter. This trial demonstrated that the use of
OceanFeed Swine in Sow diets led to a statistically significant increase in
the number of live piglets in their litter. The economic benefit of this is
calculated to be additional revenue of over $24 per sow per year under current
economic conditions, which OHT believes results in an approximate 5%
improvement in profit per sow for the groups of sow farming customers it is
targeting. OHT sees this providing significant commercial benefits and
opportunity for sales growth.
· Academic research which has shown that, in addition to the long
demonstrated pre-biotic effect of using OceanFeed, its inclusion in diets also
leads to improvements in anti-inflammatory, antioxidant and pathogen-binding
properties to commercially beneficial levels. OHT has seen a positive
response from new customer targets to the evidence of these additional
benefits.
· OHT was granted a broad patent protecting the claim that its
OceanFeed seaweed blend causes a pre-biotic effect and can lead to higher
growth rates, improve feed efficiency and lower mortality. Importantly this
patent covers the application in a wide range of animal species as well as a
wide range of potential product formulations.
In addition to these achievements, the Company has large-scale trial work in
progress at research institutes demonstrating the effect of OceanFeed in the
diets of salmon, which is an industry facing many challenges, as well as in
dairy and beef cattle which is expects to report during the second half of
2024.
Board
OHT has made several changes to its Board since the start of 2024. In March
both Hadden Graham and Tom Onions stepped down from the Board by not seeking
re-election at the Company's AGM. As mentioned above, Gerina Eberl-Hancock and
Riaan VanDyk were appointed to the Board as non-executive directors, and both
bring considerable relevant industry experience along with sales and marketing
skills. Subsequent to the period end, Ashley Head was appointed as Executive
Chairman on 3 September following the resignation of Mark Williams as CEO.
Funding
The Company has conditionally raised £1.5 million, before expenses, by way of
the issue of secured loan notes and warrants to certain existing Shareholders.
The net proceeds will be used to meet the Company's immediate working capital
requirements and provide the capital to drive significant revenue into 2025.
The Secured Loan Notes will be issued following approval of the Resolutions by
Shareholders at the General Meeting and the satisfaction of all conditions
precedent. In order to meet the short-term cash requirements of the Company
prior to the General Meeting and the satisfaction of all conditions precedent,
it is intended two of the Noteholders will make up to £0.4m available
immediately through an on-demand term loan at an interest rate of 12.5%.
Following Shareholder approval of the Resolutions, the Secured Loan Notes will
be issued along with the Warrants and the balance of the £1.5 million will be
available to be drawn down.
Outlook
In its trading update of 23 July 2024 ("Trading Update"), OHT detailed
multiple new initiatives that were implemented in early 2024 to drive growth
of its OceanFeed product into its substantial target markets. Whilst the
major benefits of these initiatives are not immediate, the Company has already
seen a number of early indications of success including greater momentum in
onboarding new customers from a wider range of species, geographies and sales
channels and enabling shorter sales cycles.
OHT has a highly concentrated customer base that means the actions of a
handful of customers have had a material impact on revenues. As detailed in
the trading update of July, neither the Company's largest OceanFeed customer
nor its largest single seaweed customer from 2023 had placed any orders in
1H2024. In addition to existing customer revenues, the Company's previous FY
2024 outlook was reliant on quickly commercialising successful trials outcomes
and expanding distribution channels which have been slower to realise than
forecast.
Reflecting the impact on FY 2024 of existing customer ordering patterns and
slower onboarding of new customers, the Company now expects to report full
year revenue of circa €2.4 million. Within that there is an expectation of
positive organic revenue growth in OceanFeed excluding the one-year impact
from the largest customer. The Company is pleased to now report that this
customer resumed orders in August 2024.
Gross margin from the sale of OceanFeed is expected to continue to increase
and is expected to be over 40% for the full year. The Company is adequately
funded through the loan note facility announced today which gives it
sufficient capital (alongside the receivables purchase facility it put in
place at the start of 2024) to drive revenue growth into 2025.
Looking forward, OHT believes that 2025 will be a year of substantial revenue
growth with greater revenue visibility from the changes made in its sales and
marketing strategy which are resulting in:
1. targeting the highest opportunity segments in each specific region
and market
2. significant investment in sales and marketing resource and
headcount in target regions
3. increasing breadth of customer base with reduced customer
concentration risk
4. improved customer intelligence and longer term visibility of usage
/ demand requirements
5. increased use of distributors with faster customer onboarding and
reduced reliance on long trial periods
The trial data and customer feedback remain extremely positive as regards
OceanFeed and we look forward to returning to significant growth given the
substantial size of the market opportunity.
Financial Summary
The Company has prepared the following financial summary, in addition to the
attached financial statements. This summary shows its product revenue and
separates the other revenue it records which is a reimbursement of shipping
arranged by OHT on behalf of its customers and on which it does not charge a
margin. Adjusted EBITDA excludes IPO costs, share based payments, other
income/expenses. 2023 comparatives in the table below are updated to reflect
this definition.
Six months to Six months to Year ended
30-Jun-24 30-Jun-23 31-Dec-23
€'000 €'000 €'000
Product revenue 831 1,576 3,029
Other revenue 120 177 339
Reported revenue 951 1,754 3,368
Cost of goods sold 665 1,190 2,230
Gross Profit 286 564 1,138
Gross Margin % 34.4% 35.8% 37.6%
Overheads excluding IPO costs, share based payments, depreciation and finance (1,988) (1,789) (3,321)
costs
Adj EBITDA (1,702) (1,225) (2,183)
Finance expense (22) (77) (66)
Depreciation & Amortisation (127) (35) (226)
Other (219) 6 (55)
Adjusted Earnings (2,070) (1,331) (2,530)
IPO transaction costs - (754) (763)
Share based payments (61) (97) (185)
Profit (loss) before tax (2,131) (2,182) (3,478)
Revenue
Reported revenue declined 46% to €0.95 million (H1 2023 €1.75 million) as
a result of the Company's largest OceanFeed customer from 2023 and its largest
single seaweed customer not placing any orders in 1H 2024. Other volumes
increased year-on-year with higher OceanFeed pricing through annualisation of
2023 price increases and higher prices realised with new customers.
Profitability
The Company recorded gross profit of €0.29 million in the first half vs
€0.56 million achieved in the first half of last year. Total gross margin of
34% on product revenue in H1 is a decline vs 36% and 38% recorded in H1 and
full year 2023 respectively. Total margins have been negatively impacted by
one-off loss-making sales of aged single seaweed inventory, with underlying
margins increasing year-on-year benefitting from the increases in OceanFeed
average selling prices and improved customer mix. We believe that we will be
able to further improve gross margin as we scale the business further.
EPS
Basic loss per share of €0.016 has reduced from a loss of €0.023 in June
2023.
Cash Flow
The company has a cash balance of €1.1 million at 30 June 2024 compared to
€4.7 million at 30 June 2023, following proceeds of the March 2023 IPO.
Apart from funding the company's losses, the historic build in inventory has
been the single largest use of cash and whilst that currently leaves the
company with excess inventory, it smoothes the path for the Company to
accelerate revenue growth in future.
Ashley Head
Executive Chairman
Unaudited Condensed Consolidated Statement of Total Comprehensive Income
for the interim period ended 30 June 2024
Note Six months to Six months to Year ended 31 Dec 2023
30 Jun 2024 30 Jun 2023
(Unaudited) (Unaudited) (Audited)
€ € €
Product revenue 831,415 1,576,332 3,029,327
Other revenue 120,037 177,478 338,319
Total revenue 951,452 1,753,810 3,367,646
Cost of sales (665,407) (1,189,624) (2,229,858)
Gross profit 286,045 564,186 1,137,788
Other operating income - 19,930 50,327
Administrative expenses (2,395,206) (1,935,142) (3,836,933)
Operating loss (2,109,161) (1,351,026) (2,648,818)
Finance expense (21,569) (77,074) (65,504)
IPO transaction cost - (753,885) (763,315)
Loss before taxation (2,130,730) (2,181,985) (3,477,637)
Taxation - - 71,639
Loss for the period (2,130,730) (2,181,985) (3,405,998)
Other comprehensive income
Item that may be subsequently reclassified to profit or loss:
Currency translation differences 140,027 496 12,159
Total comprehensive loss, net of tax (1,990,703) (2,181,489) (3,393,839)
Total comprehensive loss for the period attributable to owners of the parent (1,990,703) (2,181,489) (3,393,839)
Loss per share - basic and diluted (cent) 5 (0.016) (0.023) (0.031)
The above condensed consolidated statement of total comprehensive income
relates to continuing operations for the Group.
Unaudited Condensed Consolidated Statement of Financial Position
as at 30 June 2024
Note 30 Jun 2024 30 Jun 2023 31 Dec 2023
(Unaudited) (Unaudited) (Audited)
ASSETS € € €
Non-current assets
Right of use asset 7 378,291 101,229 40,492
Intangible assets 6 158,794 109,962 184,208
Property, plant and equipment 458,511 373,999 398,788
Loan receivable 50,000 - 50,000
Total non-current assets 1,045,596 585,190 673,488
Current assets
Trade and other receivables 1,024,789 1,290,706 1,595,664
Inventories 1,678,368 1,016,729 1,450,884
Cash and cash equivalents 1,073,376 4,756,926 2,598,501
Corporation tax asset 72,781 72,537 71,269
Total current assets 3,849,314 7,136,898 5,716,318
Total assets 4,894,910 7,722,088 6,389,806
EQUITY AND LIABILITIES
Equity
Share capital 1,477,482 1,477,482 1,477,482
Share premium 8,104,571 8,128,086 8,104,571
Share-based payment reserve 355,459 206,406 294,367
Merger reserve 26,932,455 26,932,455 26,932,455
Foreign exchange reserve 104,347 (47,343) (35,680)
Retained losses (32,938,396) (29,583,653) (30,807,666)
Total equity 4,035,918 7,113,433 5,965,529
Non-current liabilities
Lease liability 7 263,626 47,613 -
Total non-current liabilities 263,626 47,613 -
Current liabilities
Trade and other payables 476,718 493,265 376,663
Lease liability 7 118,648 67,777 47,614
Total current liabilities 595,366 561,042 424,277
Total Liabilities 858,992 608,655 424,277
Total equity and liabilities 4,894,910 7,722,088 6,389,806
Unaudited Condensed Consolidated Statement of Changes in Equity
for the interim period ended 30 June 2024
Share Share Share-based payment Merger Foreign exchange reserve Retained Total
€
capital premium reserve reserve losses equity
€ € € € € €
As at 1 January 2024 1,477,482 8,104,571 294,367 26,932,455 (35,680) (30,807,666) 5,965,529
Loss for the period - - - - - (2,130,730) (2,130,730)
Other comprehensive loss:
Foreign currency exchange difference - - - - 140,027 - 140,027
Total comprehensive loss for the period - - - - 140,027 (2,130,730) (1,990,703)
Transactions with owners
Share-based payment - - 61,092 - - - 61,092
Total transactions with owners - - 61,092 - - - 61,092
As at 30 June 2024 1,477,482 8,104,571 355,459 26,932,455 104,347 (32,938,396) 4,035,918
Unaudited Condensed Consolidated Statement of Changes in Equity
For the interim period ended 30 June 2023
Share Share Share-based payment Merger Foreign exchange reserve Retained Total
€
capital premium reserve reserve losses equity
€ € € € € €
As at 1 January 2023 761,448 - 109,456 26,932,455 (47,839) (27,401,668) 353,852
Loss for the period - - - - - (2,181,985) (2,181,985)
Other comprehensive loss:
Foreign currency exchange difference - - - - 496 - 496
Total comprehensive loss for the period - - - - 496 (2,181,985) (2,181,489)
Transactions with owners
Issue of share capital 434,093 6,511,388 - - - - 6,945,481
Conversion of convertible loan notes 281,941 2,220,658 - - - - 2,502,599
Cost of raising equity - (603,960) - - - - (603,960)
Share-based payment - - 96,950 - - - 96,950
Total transactions with owners 716,034 8,128,086 96,950 - - - 8,941,070
As at 30 June 2023 1,477,482 8,128,086 206,406 26,932,455 (47,343) (29,583,653) 7,113,433
Unaudited Condensed Consolidated Statement of Changes in Equity
for the year ended 31 December 2023
Share Share Share-based payment Merger Foreign exchange reserve Retained Total
€
capital premium reserve reserve losses equity
€ € € € € €
As at 1 January 2023 761,448 - 109,456 26,932,455 (47,839) (27,401,668) 353,852
- - - - (3,405,998) (3,405,998)
Loss for the year
Other comprehensive loss:
Foreign currency exchange difference - - - - 12,159 - 12,159
Total comprehensive loss for the year - - - - 12,159 (3,405,998) (3,393,839)
Transactions with owners
Issue of share capital 434,093 6,511,388 - - - - 6,945,481
Conversion of convertible loan notes 281,941 2,220,658 - - - - 2,502,599
Cost of raising equity - (627,475) - - - - (627,475)
Share-based payment - - 184,911 - - - 184,911
Total transaction with owners 716,034 8,104,571 184,911 - - - 9,005,516
As at 31 December 2023 1,477,482 8,104,571 294,367 26,932,455 (35,680) (30,807,666) 5,965,529
Unaudited Condensed Consolidated Statement of Cash Flows
Six months to 30 Jun 2024 Six months to 30 Jun 2023 Year end to
31 Dec 2023
(Unaudited) (Unaudited) (Audited)
€ € €
Cash flows from operating activities
Loss before taxation (2,130,730) (2,181,985) (3,477,637)
Adjustments for:
Depreciation of property, plant, and equipment 38,293 32,413 67,066
Depreciation of right-of-use assets 62,664 71,589 133,012
Amortisation of intangible assets 26,210 6,485 26,250
Finance expense 21,569 77,074 65,504
Foreign exchange differences on convertible loan note - - 182,321
Loss on disposal of property, plant and equipment - - (1,199)
Share based payment 61,092 96,950 184,911
IPO transaction costs - 753,885 763,315
(1,920,902) (1,143,589) (2,056,457)
Changes in working capital
Increase in inventories (227,484) (386,864) (821,019)
Decrease/(increase) in trade and other receivables 569,363 (49,805) (294,267)
Increase/(decrease) in trade and other payables 100,055 56,731 (59,871)
Cash used in operations (1,478,968) (1,523,527) (3,231,614)
Taxation credits received - - 62,412
Net cash used in operations (1,478,968) (1,523,527) (3169,202)
Cash flows from investing activities
Purchase of property, plant and equipment (105,493) (59,890) (131,590)
Purchase of intangible asset (2,713) (19,622) (190,134)
Payments for development costs - (76,209) -
Net cash flow used in from investing activities (108,206) (155,721) (321,724)
Cash flow from financing activities
Proceeds from issue of share capital - 6,945,481 6,945,481
Cost of share issue - (1,357,845) (1,390,790)
Proceeds from convertible loan notes - - -
Loan to supplier - - (100,000)
Repayment of related party loan - (403,523) (403,523)
Interest paid on borrowings - (20,200) (13,339)
Other interest paid (11,402) - (247)
Principal paid on lease liabilities (66,355) (82,874) (151,415)
Interest paid on lease liabilities (10,167) (11,068) (16,670)
Net cash (used in)/generated from financing activities (87,924) 5,069,971 4,869,497
(Decrease)/increase in cash and cash equivalents (1,675,098) 3,390,723 1,378,571
Cash and cash equivalents at beginning of period 2,598,501 1,194,440 1,194,440
Effect of foreign exchange rate movements 149,973 171,763 25,490
Cash and cash equivalents at the end of the period 1,073,376 4,756,926 2,598,501
for the interim period ended 30 June 2024
Notes to the unaudited interim report for six months ended 30 June 2024
1. General Information
Ocean Harvest Technology Group Plc (the "Company") is a public limited company
which is listed on the AIM Market of the London Stock Exchange and
incorporated and domiciled in the UK. Its address of its registered office is
41 London Road, Reigate, England, RH2 9RJ. The registered number of the
Company is 13411717.
2. Basis of preparation
The condensed consolidated interim financial statements include the results of
Company and its subsidiaries ("the Group") for the six months ended 30 June
2024 and have not been audited. These condensed consolidated interim financial
statements do not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006.
These condensed consolidated interim financial statements have been prepared
in accordance with the AIM rules and the recognition and measurement
requirements of UK-adopted International Accounting Standards ("UK-IAS") and
adopting the accounting policies that will be applied in the 31 December 2024
annual financial statements and consistent with those disclosed in the 31
December 2023 annual financial statements.
The condensed consolidated financial statements should be read in conjunction
with the Group's statutory financial statements for the year ended 31 December
2023. The auditors reported on those accounts and their report was unqualified
and did not contain a statement under s498(2) or (3) of the Companies Act 2006
These condensed consolidated interim financial statements were approved by the
Board of Directors on 27 September 2024.
3. Accounting policies
Going concern
The Directors believe that the Group has adequate resources to continue
trading for the at least 12 months from the date of approval of these
condensed consolidated interim financial statements. Accordingly, the
Directors continue to adopt the going concern basis of accounting in preparing
these financial statements.
Summary of significant accounting policies
The condensed consolidated interim financial statements have been prepared
using applicable accounting policies and practices consistent with those
adopted in the statutory audited consolidated annual financial statements for
the year ended 31 December 2023.
4. Critical accounting judgements and estimates
The preparation of the condensed consolidated interim financial statements
requires Directors to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
judgements and estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the statutory audited consolidated financial statements for
the year ended 31 December 2023
5. Loss per share
The calculation of basic and diluted loss per share is based upon the loss of
attributable to equity holders divided by the weighted average number of
shares in issue during the period.
The loss incurred by the Group means that the effect of any outstanding
options would be anti-dilutive and is ignored for the purposes of the diluted
loss per share calculation.
Six months to 30 Jun 2024 Six months to Year ended
(Unaudited)
30 Jun 2023
31 Dec 2023
€ (Unaudited) (Audited)
€
€
Loss for the period from continuing activities (2,130,730) (2,181,985) (3,405,998)
Six months to 30 Jun 2024 Six months to 30 Jun 2023 Year ended
(Unaudited)
31 Dec 2023
(Unaudited)
No
No (Audited)
No
Weighted average number of ordinary shares 125,855,697 94,073,289 110,095,106
Six months to 30 Jun 2024 Six months to 30 Jun 2023 Year ended
31 Dec 2023
(Unaudited) (Unaudited)
€
€ (Audited)
€
Basic and diluted loss per share (0.016) (0.023) (0.031)
6. Intangible assets
Patents and licenses € Development costs € Total
€
Cost
At 1 January 2024 29,696 189,761 219,457
Additions 2,713 - 2,713
Exchange differences - (1,689) (1,690)
At 30 June 2024 32,409 188,072 220,481
Amortisation
At 1 January 2024 14,139 21,110 35,249
Charge for the period 3,614 22,596 26,210
Exchange differences (220) 448 228
At 30 June 2024 17,533 44,154 61,687
Net book
At 30 June 2024 (Unaudited) 14,876 143,918 158,794
At 31 December 2023 (Audited) 15,557 168,651 184,208
Development costs are internally generated intangible assets associated with
the development of Group's products.
7. Leases
In May 2024 the Group entered into a new lease agreement in relation to the
warehouse located in Vietnam. The lease term is 3 years. The Group has
adopted an incremental borrowing rate of 13.52%. The incremental borrowing
rate includes an additional risk premium on a lease based in Vietnam and
denominated in Vietnamese Dong (VND).
Leasehold property € Total
€
Cost
At 1 January 2024 668,305 668,305
Additions 404,748 404,748
Exchange rate differences 2,814 2,814
At 30 June 2024 1,075,867 1,075,867
Amortisation
At 1 January 2024 627,813 627,813
Charge for the period 62,664 62,664
Exchange rate differences 7,099 7,099
At 30 June 2024 697,576 697,576
Net book
At 30 June 2024 (Unaudited) 378,291 378,291
At 31 December 2023 (Audited) 40,492 40,492
Right of use asset
Leasehold property € Total
€
Cost
At 1 January 2024 47,614 47,614
Additions 404,748 404,748
Interest expenses 10,167 10,167
Lease payments (76,522) (76,522)
Exchange adjustments (3,733) (3,733)
At 30 June 2024 (Unaudited) 382,274 382,274
Lease liability
8. Share-based payment schemes
The Group operates two employee share option schemes that are accounted for as
equity-settled share-based payments, which are detailed in the annual report
for the year ended 31 December 2023.
In April 2024, the Company granted 1,385,857 options each to Chris Scott, the
Group's Chief Financial Officer and Nico Stein, the Group's Chief Commercial
Officer under the Share Option Plan with the same vesting conditions as the
existing options.
The number of new options granted equals to the number of options that have
either been forfeited since the IPO or are due to be forfeited in 2024 by
employees leaving the Company.
The total charge for the period ended 30 June 2024 in respect of the two
options schemes was €61,092 (2023: €nil) and was recognised in the
Statement of Comprehensive Income.
9. Significant events after the reporting date
The Company has conditionally raised £1.5 million , before expenses, by way
of the issue of Secured Loan Notes and Warrants to certain existing
Shareholders. The net proceeds will be used to meet the Company's immediate
working capital requirements and provide the capital to drive revenue in 2025.
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