REG - Pod Point Group Hdgs - Half-year Report
31/07/2023 07:00
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RNS Number : 6425H Pod Point Group Holdings PLC 31 July 2023
31 July 2023
Pod Point Group Holdings PLC (Symbol: PODP)
Unaudited half-year results for the six months ended 30 June 2023
New team addressing the challenges to capture long term opportunities
Pod Point Group Holdings plc (the "Company") and its subsidiaries (the
"Group"), one of the UK's market leading providers of Electric Vehicle ("EV")
charging solutions, announces its unaudited half-year results for the period
ended 30 June 2023 and begins its transformation plan to address performance
issues.
Key Financials Six months to 30.06.23 Six months to 30.06.22 Change
Total Revenue £30.6m £41.6m -26%
Adjusted EBITDA(()(1)) £(6.8)m £(1.4)m £(5.4)m
EBITDA Loss £(9.4)m £(4.0)m £(5.4)m
Loss Before Tax £(32.8)m £(7.5)m £(25.3)m
Closing cash and cash equivalents £58.8m £82.1m £(23.3)m
((1)) See Notes below for definition of Adjusted EBITDA
Group Highlights
· Compared to a very strong H1 2022, Revenue at £30.6m, down by
26% against a very strong prior year comparison that benefitted from pull
forward demand from ending of OZEV grant.
· Overall Gross Margin up 500bps to 30% from 25%, driven by
improved supply chain, product savings, pricing and margin mix improvement.
· Growth of communicating units to 212k, up by 21% across all
customers, strengthening the foundations of future recurring revenue and
leading to first Grid Load Management revenue expected in FY2023 from UK Power
Networks.
· Continued strong growth in Owned Asset revenue up 172% and
Recurring revenue up 87%.
· Home revenue, a key focus for the transformation plan, down 54%,
reflecting a more challenging market with reduced market penetration.
· Adjusted EBITDA loss of £6.8m below expectations on lower
revenues, but with continued investment in future growth.
· Non-cash goodwill impairment charge of £18.6m drives Loss Before
Tax to £32.8m.
· Strong balance sheet with £58.8m cash.
· Following the appointment of interim CEO Andy Palmer, the Board
is focused on delivering near term operational performance improvement and
strengthening the Group's foundations to deliver long term shareholder value
creation. The Group will host a Capital Markets Event during Q4 2023 to
provide an update on its refined strategy and transformation plan.
· The Board has appointed a search firm to recruit a new CEO for
the Group. Updates will be provided in due course.
Strategic and Operational Summary
· First Grid Load Management contract signed with UK Power
Networks, leading to first consumer-related recurring revenue expected in 2023
financial year.
· Large contract wins with three of the major UK Housebuilders -
Barratt Development, Bellway and Taylor Wimpey, opening significant growth
pipeline in this large segment.
· Significant growth in network usage, with electricity transferred
across our network up 26% at 215 GWh, helping to avoid 163k tonnes of
CO2e((1)), up 26% on 2022.
· Excellent levels of customer service maintained with a 4.3 out of
5 rating on Trustpilot and a 4.6 out of 5 rating on reviews.io with a 91%
recommendation rate.
· Home charge Average Basket Spend increased by 7% to £800.
· Headline Home Market Penetration((2)) down by 15ppt% from 22% to
7%, with the conclusion of OZEV grant that caused customers to pull forward
home charge purchases resulting in an overweight 2022 penetration, combined
with a weaker 2023 charge point demand market.
· Owned Asset site expansion in Tesco deal near end of rollout:
increased to 593 sites with 1334 charging points including 140 DC rapid units.
· Improving of supply chain dynamics and good start to Celestica
relationship.
((1)) Consistent methodology with 2022 reporting
((2)) Home installation units (excluding wholesale units) as a % of reported
SMMT PIV registrations in same period
Andy Palmer, Interim Chief Executive Officer of Pod Point, said:
The first half of 2023 has been complex, and we have faced numerous
challenges, both internally and externally, including the well documented
inflationary pressures and cost of living crisis. Pod Point has lots of
reasons to be pleased with progress made during the period, including several
high-profile contract wins with large UK housebuilders and our first grid load
management contract, significant improvements in our supply chain and a big
step-up in our recurring revenues. Our connected charging network has
increased to 212,000 and remains by far the largest in the UK. Following my
appointment as Interim CEO, we are reviewing areas of improvement that will
strengthen our foundations for long-term future success and growth.
Financial Summary Six months to 30.06.23 Six months to 30.06.22 Period on period change
£'000 £'000
Total revenue 30,614 41,552 -26%
Home 12,415 27,219 -54%
Commercial 12,722 12,084 5%
Owned Assets 4,052 1,489 172%
Recurring Revenue 1,425 760 87%
Gross profit 9,239 10,388 -11%
Gross margin 30% 25% +5ppt%
Home gross profit 3,426 6,285 -45%
Home gross margin 28% 23% +5ppt%
Commercial gross profit 3,746 2,776 35%
Commercial gross margin 29% 23% +6ppt%
Adjusted EBITDA(()(1)) (6,778) (1,414) (5,364)
EBITDA Loss (9,381) (3,992) (5,389)
Loss before tax (32,815) (7,546) (25,269)
Closing cash and cash equivalents 58,766 82,086 (23,320)
Headline KPIs Six months to Six months to Period on period change
30.06.23
30.06.22
Total UK new PiV((2)) sales 215,120 166,512 29%
Home units installed 15,525 36,576 -58%
Commercial units installed and shipped 9,668 8,844 9%
Home market penetration 7% 22% -15ppt%
Total Home units installed and able to communicate at period end 188,158 156,398 20%
Total Commercial units installed and able to communicate at period end 23,771 18,732 27%
Average recurring revenue per unit((3)) £60 £41 46%
Total Owned Asset sites at period end 593 500 19%
Total Owned Asset Charge Points at period end 1,334 1,109 20%
Total Owned Asset Rapid/DC Charge Points at period end 140 101 39%
Notes
((1))Adjusted EBITDA is defined as earnings before interest, tax, depreciation
and amortisation and also excluding both amounts charged to the income
statement in respect of the Group's share based payments arrangements and
adjusting for large corporate transaction and restructuring costs. These
have been separately identified by the Directors and adjusted to provide an
underlying measure of financial performance. The reconciliation is set out
on the income statement and Note 5 provides a summary of the amounts arising
from the large corporate transactions and restructuring costs.
((2)) PiV defined as "Plug-in Vehicles"
((3))Average recurring revenue per unit is calculated as recurring revenue
divided by the total number of Commercial units installed and able to
communicate at a period end. Commercial units shipped but not installed by Pod
Point are not included in this statistic.
Current trading and outlook
2023 has proven volatile during the first half, with weaker revenue trends
being partially offset by significantly higher gross margin. Headline market
data suggests strong growth in the PIV market, but trends between private
customers and fleet customers have been divergent. While inflation has eased
slightly in the most recent data, cost of living pressures remains and are
likely to continue to weigh on consumer confidence.
Consequently, the Group has updated revenue guidance for 2023 to be at least
£60m. Adjusted EBITDA loss for 2023 is now expected to be no greater than
£17m. The updated adjusted EBITDA guidance includes the impact of lower
revenues, and an expected £5m of costs related to transformation plan
initiatives and growth investments identified as part of the ongoing strategy
review and non-cash charges. We expect the improvement in gross margin seen
in H1 to continue in the second half on improved supply chain and actions
taken by the Group. Our year-end cash position is expected to be between
£40-45 million.
Webcast presentation
There will be a webcast presentation for investors and analysts this morning
at 09:00 am. Please contact podpoint@teneo.com
(mailto:podpoint@tulchangroup.com) if you would like to attend.
Enquiries:
Pod Point
Plc
Andy Palmer, interim Chief Executive
Officer
David Wolffe, Chief Financial Officer
Phil Clark, Investor Relations
phil.clark@pod-point.com
Numis (Joint Corporate Broker)
Jonathan Wilcox / Andrew
Coates
+44 (0)20 7260 1000
BofA Securities (Joint Corporate Broker)
Marcus Jackson / Mitchell
Evans
+44 (0)20 7628 1000
Media
Mark Burgess / Matt Low / Arthur Rogers
(Teneo)
+44 (0)20 7353 4200 podpoint@teneo.com
(mailto:podpoint@teneo.com)
About Pod Point Group Holdings plc
Pod Point
(https://protect-eu.mimecast.com/s/j-drCjRx8UNRGPTWhbxy?domain=pod-point.com)
was founded in 2009 by entrepreneur Erik Fairbairn. Driven by a belief that
travel shouldn't damage the earth, Pod Point has 212k smart communicating
charge points on its network and is an official charge point supplier for
major car brands.
Pod Point installs a broad range of products from smart domestic charge points
to high power rapid chargers and load balancing systems. Pod Point works with
a broad range of organisations and customers to offer home and commercial
charging solutions with customers including major retailers, hotels,
restaurants and leisure venues.
Pod Point is admitted to trading on the London Stock Exchange under the
ticker symbol "PODP."
For more information, visit https://pod-point.com/ (https://pod-point.com/)
Chief Executive's Review
The first half of 2023 has been another dynamic period for the Group with lots
of successes, lots of challenges and most recently a period of transition with
the departure of the Group's Founder and CEO. When taking on the role of
interim CEO, I promised to provide an update on key priorities for the
Group. The Board remains extremely confident in the long-term future for Pod
Point and its core mission and plan. The Group has made a strong start in
capturing the opportunities created by the transition to electric vehicles and
our long-term shareholder value creation potential remains huge. However, it
is clear there are certain areas that we need to improve on, particularly
around operational processes and moving towards profitability as quickly as
possible.
Alongside the Executive team and the Board, I have conducted a rapid initial
review of our business. We have identified three critical areas that need
strategic and operational review.
1. Growth.
While the Group had a strong track record of delivering rapid growth for
several years, the performance in the last 12 months has been very
disappointing and we have lost market share in an increasingly competitive
market. We are acting quickly to re-establish our market leading position on
new installations, focusing on product innovation and operational
excellence. The Board is in no doubt that the Group has significant growth
potential, and we need to reassess our strategic priorities to ensure we fully
leverage our competitive advantages of brand awareness, existing installed
base, strong OEM and Commercial relationships and emerging recurring revenue
streams.
Pod Point is positioned well to take advantage of strong relationships with
OEM partners and of the OZEV scheme to sell charging points. However, this
has been done at the detriment of building internal sales capabilities and at
this time these remain insufficient to drive growth. With the shifts in the
market and the end of the OZEV scheme, our sales have slowed. We are
therefore re-focusing on re-establishing greater internal sales capabilities
and resources.
2. Product innovation.
Pod Point had a clear early lead in charge point technology. Our products are
reliable, robust, easy to use and offer great value. However, while we still
have a strong product set, we have failed to maintain our leadership position
and been slow to anticipate the market evolution to open architecture
technology. We are re-establishing a clear product innovation roadmap that
keeps pace with customer requirements in a cost-effective way. The
introduction of OCPP (Open Charge Point Protocol) and OCPI (Open Charge Point
Interface) capabilities in our product is a key priority, unlocking new growth
opportunities.
3. Cost and ROI discipline.
The Group has not had a consistent and disciplined enough approach to capital
allocation and investment in our cost base. Consequently, we have not
prioritised investments into those areas that will deliver break-even in our
core charging business. We need to ensure greater operational control across
the business, and we will implement a clearer investment criteria framework
and return on capital hurdle rates for our investment decisions. Accelerating
our path to profitability and careful deployment of our cash will be a key
focus for the Group.
A transformation programme is in development, with further details and a
strategy update in Q4 at a CMD.
Immediate priorities for H2 2023
For the balance of 2023, the Board and Executive team will focus on refining
our tactical and strategic response to each of these areas, including the
engagement of external consultants to support a strategic and operational
review of the Group. This work, combined with core workstreams identified by
the management team will create the Group's transformation plan, Powering Up.
The intent of this work and our response to current company-specific
challenges is to ensure that Pod Point is well placed to take advantage of our
key strengths to (1) move to break-even as quickly as possible in our core
charging business and (2) capture the long-term structural growth
opportunities created by the decarbonisation of the economy.
· Brand. Pod Point has strong brand awareness and is well regarded
by consumers. A recent YouGov survey showed Pod Point has the leading brand
consideration in the sector.
· Network. Our installed network of charging points is now 212,000,
up 9% compared to 31 December 2022. Pod Point has the largest home charging
network in the UK.
· Partnerships. The Group has established significant partnerships
with many of the largest OEMs in Europe as well as being a strong partner for
home electric charging points for 13 of the largest 15 homebuilders in the UK.
· Routes to market. Pod Point has a range of routes to market for its
charge points: Direct to Consumer, OEM referral, Leasing, Wholesale,
Housebuilders, and B2B Commercial across retail, leisure, logistics and
others. This provides us with diversification and leverages our
partnerships.
· ESG credentials. Our mission is unchanged, to provide travel that
doesn't damage the Earth. We have a strong ESG mindset and will provide an
update of our ESG programme at our preliminary results.
· Balance sheet strength. Pod Point is well capitalised. Our
£58.8 million of cash at the end of H1 2023 means we have sufficient
financial resources to deliver on our medium-term plan.
By doing this, we are creating a significant installed base of connected
charge points that will unlock our grid load management potential, with its
high margin and recurring revenue streams.
The Group will host a capital markets event during Q4 2023 to provide more
detail of our transformation plan, key initiatives and updated strategic
plan. We will provide more detail on the grid management and recurring
revenue opportunity for Pod Point. At the event, financial and operational
targets will be provided.
Overview of results:
Performance in H1 reflects a significant degree of challenge. Although a key
highlight is gross margin progression, revenue growth has been disappointing.
Like many other companies, we are seeing how a poor macroeconomic environment
with low consumer confidence is currently constraining both consumer and
commercial demand.
Despite challenging conditions in 2023, we continued to invest in our
business, because we see a strong industry growth trajectory over the next
decade as the UK navigates the journey to all vehicles being electric. We
have an opportunity to cement a leading position in the market.
In H1 2023, we shipped and installed 25,193 charge points, with the commercial
sector leading with 9% increase year on year.
During the year, we also made significant steps towards improving our gross
margin, avoiding additional supply chain costs, having full production of our
highest volume products with leading global manufacturer, Celestica, and by
growing our average basket spend in our home charge sector from £746 to
£800.
We saw exceptional growth in our small but vitally important recurring revenue
sector, specifically growing our average recurring revenue per commercial unit
from £41 to £60 and growing our overall recurring revenue by 87% year on
year.
Furthermore, we saw 172% growth in our revenues from our Owned Assets,
predominantly driven by our relationship with Tesco and introduction of
increased charging tariffs.
Overall, we ended the year with circa 212k communicating charge points, which
is a significant step toward our plans to enable grid load management
functionality across our network.
The recent announcement of the deal with UK Power Networks is a significant
marker of our progress towards the beginning of a new stream of recurring
revenues relating to consumers and the value of our network in terms of grid
load management. We expect to recognise our first revenues in this financial
year 2023.
Pod Point's mission is to enable travel that doesn't damage the Earth, so we
were also very pleased to see strong growth in the energy transferred across
our network, (215GWh HY23 vs 171GWh HY22) and the corresponding growth in the
amount of carbon avoided by our customers (163k tonnes HY23 vs 129k tonnes
HY22).
We recognise that performance in the last 6 months has been disappointing, and
we are committed to addressing the underlying issues, and know we can build on
some core strengths of the business.
We continue to be very excited by the growth prospects for charging
underpinned by the government's 2030 internal combustion engine ban. The
opportunity from Grid services is even more exciting.
I would like to thank the whole team at Pod Point for the hard work of the
last 6 months, the warm welcome to my new role, and the clear commitment to
the revitalisation of the business.
Sector Review
In the Home business segment:
· Revenue of £12.4 million was 54% down compared to of £27.2
million in H1 2022.
· New plug-in vehicle registrations increased 29% to 215,120 in H1
2023 from 166,512 in H1 2022. This continued growth reflects continued demand
for EVs, but it is important to note that the retail/consumer side of the
market showed significant weakness. The number of Pod Point Home units
installed fell to 15,525 versus 36,576 in H1 2022.
· Our headline market penetration of new plug-in vehicle
registrations therefore decreased to 7% from 22% in H1 2022. There are a range
of factors that we believe contributed to this including:
o Increased consumer cost of home charge units as a result of the end of the
OZEV grant, and the cost-of-living crisis may have reduced the average ratio
of home charge units to plug-in vehicles.
o Shifting market mix in 2023 away from private EV sales towards fleet, with
the private market showing weak demand for charge points, and fleet sales
showing increased vehicle renewals where no charge point is required.
· Percentage gross margin in H1 2023 increased 500 basis points to
28% compared to H1 2022 at 23%, driven by the avoidance of component sourcing
costs, improved Average revenue per unit, and a full period of improved Bill
of Material (BoM) costs. Average revenue per unit increased to £800 from
£746 in H1 2022.
· The lower revenue growth drove total gross margin lower in H1
2023, falling to £3.4 million compared to £6.3 million in H1 2022.
In the Commercial business segment:
· We delivered a steady performance, with revenue of £12.7 million
compared to H1 2022 of £12.1 million, an increase of 5% on average, with
higher growth in our supply only segment.
· Number of units installed decreased to 1,890 from 2,112 in H1
2022 and the number of units sold directly to customers increased to 7,778,
compared to 6,732 in H1 2022. This represents a direct sale increase of 16%.
· The increased revenues helped to increase total gross margin in
H1 2023 to £3.7 million, compared to H1 2022 at £2.8 million, an increase
of 35%.
· Percentage gross margin increased by 600 basis points to 29% in
H1 2023 from 23% in H1 2022, due to a shift in the mix of installations
toward higher margin direct sale units.
In the Recurring Revenue business segment:
· We delivered excellent growth in our recurring revenue segment,
albeit from a low base, with revenue of £1.4 million in H1 2023 compared to
H1 2022 of £0.8 million, an increase of 87%. Network revenues in H1 2023 grew
by 18% to £0.542 million compared to H1 2022 of £0.460 million.
· This increase in revenues helped to increase gross margin in H1
2023 to £0.9 million, compared to H1 2022 of £0.4 million, an increase of
108%.
· Percentage gross margin in H1 2023 increased to 62% compared
to 56% in H1 2022, an increase of 6 percentage points, with the average
recurring revenue per commercial unit installed and able to communicate
increasing to £60, compared to £41 in H1 2022.
· The number of Commercial units installed and able to communicate
at the period end increased to 23,771 from 21,342 at the end of 2022. All
recurring revenues in both 2023 and 2022 were derived from these units.
· The number of Home units installed and able to communicate at the
period end increased to 188,158 from 173,754 at the end of 2022. This growth
is strategically significant as we seek to expand our recurring revenue
products across these units.
In the Owned Asset business segment:
· We delivered a strong performance with revenue of £4.1 million
in H1 2023 compared to H1 2022 of £1.5 million, an increase of 172%.
· The total number of sites installed at the period end increased
to 593 from 564 at the end of 2022 and 500 at June 2022. The total number of
units installed at the period end increased to 1,334 from 1,259 at the end of
2022, including 140 DC rapid units at 30 June 2023 compared to 117 at the end
of 2022.
· This increase in revenues and units helped to increase gross
margin in H1 2023 to £1.2 million compared to H1 2022 at £0.9 million, an
increase of 31%.
· Percentage gross margin in H1 2023 decreased to 29% compared to
H1 2022 of 61%, a decrease of 32 percentage points, due to revenue mix.
· Gross capital deployed on assets increased to £6.9 million at
the end of H1 2023, compared to £6.3 million at the end of 2022.
Financial Performance
It was a disappointing performance by the business in H1 2023 with total
revenue of £30.6 million (H1 2022: £41.6 million), a decrease of 26%. Better
growth came from our Commercial business segment, and we also saw very high
growth in Recurring Revenue and Owned Assets.
Reduced revenue, mitigated by significant margin improvement, moderated the
decrease in total gross profit in H1 2023 of £9.2 million (H1 2022: £10.4
million) to a period on period decrease of 11%.
Compared to H1 2022 and its additional costs of sourcing components in the
spot market, with improvements in the sales mix, and underlying BoM
improvements, as well as pricing changes, percentage gross margin in H1 2023
increased to 30% (H1 2022: 25%), a period-on-period increase of 5 percentage
points.
The reduced revenues and gross profit combined with increased overhead spend
to invest in driving future growth, focussed on sales and marketing, customer
service and team development. This moved the business to an adjusted EBITDA
loss of £6.8 million in H1 2023 (H1 2022: £1.4 million).
After further investment of £6.0 million in software and product development
and controlled investment in Owned Assets, H1 2023 period end cash and
short-term investments were £58.8 compared to £74.1 million at the end of
2022.
Unadjusted losses after tax increased to £33.0 million in H1 2023 (H1 2022:
£7.5 million). EBITDA losses increased in H1 2023 with losses of £9.4
million (H1 2022: £4.0 million). There were increased depreciation and
amortisation costs of £5.1 million in H1 2023 (H1 2022: £3.5 million), while
net financing income was £0.3 million (H1 2022: net finance costs of £0.1
million).
Total administrative expenses increased to £43.0 million in H1 2023 (H1 2022:
£17.9 million), an increase of 140%. This increase was due to a goodwill
impairment loss recognised in H1 2023 of £18.6m (H1 2022: nil), additional
staff to deliver future growth, additional depreciation and amortisation costs
as a result of increased funds being invested in Owned Assets and intangible
asset development. Looking at these individually:
· Administrative expenses excluding restructuring costs, share
based payments, depreciation and amortisation and goodwill impairment costs
increased to £16.6 million in H1 2023 (H1 2022: £11.8 million) an increase
of 41%. This increase was due to additional staff and overheads to drive
future growth, albeit that growth in 2023 has been short of expectations.
· Depreciation and amortisation costs increased in H1 2023 to £5.1
million (H1 2022: £3.5 million) as a result of additional funds being
invested in product and software development and other assets.
· A goodwill impairment charge recognised in H1 2023 of £18.6m (H1
2022: nil).
· Following the listing in November 2021, Pod Point incurred share
based payment charges relating to a number of share awards that were
implemented at or soon after listing, resulting in an H1 2023 charge to the
P&L of £2 million (H1 2022: £2.6 million) and national insurance accrued
on share based payment charges of £0.3 million (H1 2022: £0.3 million).
· In H1 2023, £0.4 million of restructuring costs were incurred
(H1 2022: £nil).
Net finance income increased to £0.3 million in H1 2023 (H1 2022: net finance
costs of £0.1 million).
Our balance sheet remains strong. Working capital movements have been limited
across trade and other receivables, inventory and trade and other payables.
Fixed assets grew as we continue to build the software platforms that will
drive future growth.
Closing cash and cash equivalents were £58.8 million at 30 June 2023 (31
December 2022: £74.1 million). Closing net assets were £152.8 million (31
December 2022: £184.2 million)
Cash outflow from operating activities in H1 2023 increased by £0.2 million
to £8.9 million (H1 2022: £8.7 million). This was primarily due to a larger
operating loss.
Cash flow from investing activities had outflows of £6.3 million in H1 2023
(H1 2022: inflows of £44.3 million). This swing is primarily the result of a
£50m investment in bank deposits in 2021 that was redeemed in 2022. Aside
from this, the business in H1 2023 invested £6.0 million in capitalised
software development to drive future recurring revenues.
Cash flow from financing activities were an outflow of £0.1 million in H1
2023 (H1 2022: inflow of £0.3 million).
During H1 2023, transactions with related parties included sale of goods of
£0.1 million (H1 2022: £43k) and purchase of goods of £0.1 million (H1
2022: £0.3 million). These transactions were undertaken with the shareholders
EDF Energy Customers Limited and its subsidiaries and related parties.
Principal Risks and Uncertainties
Effective risk management is essential to the achievement of our strategic
objectives and driving sustainable
business growth. We aim to maintain an appropriate balance between protecting
the company against specific
risks while being able to encourage appropriate and monitored risk-taking and
innovation that allows us to take advantage of business opportunities.
The Board, as part of its half year processes, considered reports from
management reviewing the principal risks and uncertainties and how these might
evolve during the second half of 2023.
Following this review the Board is satisfied that the Group's principal risks
remain unchanged from those contained in our 2022 Annual Report to bring to
your attention. These are listed below:
1. Dependency on the continuing adoption of and demand for EVs
2. Competition in the industry and market segment
3. Delays to Product Development
4. Ongoing and potential future disruptions to the global supply chain
5. Government and regulatory initiatives with unknown outcomes
6. Health and safety risks related to our products, installation, maintenance
and operation of electrical equipment
7. Potential undetected defects, errors or bugs in hardware or software
8. Deterioration of economic conditions in the UK, the UK's economic
relationship with the EU and the possibility of a future health
pandemic
9. Disruptions to our network and IT systems
10. Ability to hire and retain key management and other skilled employees
Further details of the Group's principal risks and uncertainties can be found
on pages 64-73 of the 2022 Annual Report, which is available on
https://investors.pod-point.com/ (https://investors.pod-point.com/)
Director's Responsibilities Statement
We confirm that to the best of our knowledge:
a) The condensed set of financial statements has been prepared in accordance
with IAS 34 "Interim Financial Reporting"
b) The interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risk and uncertainties for the remaining
six months of the year); and
c) The interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related party transactions and changes
therein).
By order of the Board
D Wolffe
Director
31 July 2023
Basis of Preparation and General Information
The condensed consolidated interim financial statements for Pod Point Group
Holdings Plc (the Company) and its subsidiaries (together, the Group) have
been prepared using accounting policies consistent with IFRS as adopted by the
UK and in accordance with IAS 34 "Interim Financial Reporting". The same
accounting policies and methods of computation are followed in this set of
condensed consolidated interim financial statements as compared with the
most recent Annual Report. A copy of the statutory accounts for the year ended
31 December 2022 has been delivered to the Registrar of Companies. The
auditor's report on those accounts was not qualified, did not draw attention
to any matters by way of emphasis and did not contain statements under Section
498(2) or (3) of the Companies Act 2006.
The condensed consolidated interim financial statements do not constitute the
full financial statements prepared in accordance with International Financial
Reporting Standards (IFRS) and have been prepared on a going concern basis.
The condensed consolidated interim financial statements was approved by the
Board of directors on 30 July 2023.
Consolidated Income Statement
Notes Six months ended Six months ended Year ended
30 June 30 June
2023 2022 31 December
(unaudited) (unaudited) 2022
£'000 £'000 £'000
Revenue (including OZEV revenues) 2,3 30,614 41,552 71,409
Cost of sales (21,375) (31,164) (54,820)
Gross profit 9,239 10,388 16,589
Other income 600 - 1,461
Administrative expenses (42,991) (17,857) (38,065)
Operating loss (33,152) (7,469) (20,015)
Analysed as:
Adjusted EBITDA((1)) (6,778) (1,414) (7,040)
Restructuring costs((2)) 5 (359) - (57)
Share-based payments 14 (2,244) (2,578)
(5,175)
EBITDA((1)) (9,381) (3,992) (12,272)
Amortisation and depreciation (5,126) (3,477) (7,743)
Goodwill impairment 7 (18,645) - -
Group operating loss (33,152) (7,469) (20,015)
Finance income 6 542 75 457
Finance costs 6 (205) (152) (366)
Loss before tax (32,815) (7,546) (19,924)
Income tax expense (138) - (287)
Loss after tax (32,953) (7,546) (20,211)
Basic and diluted loss per ordinary share 15 £(0.22) £(0.05) £(0.13)
Notes:
(1) EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, and is considered by the Directors to be a key
measure of financial performance. Adjusted EBITDA is defined as earnings
before interest, tax, depreciation and amortisation and excluding both amounts
charged to the income statement in respect of the Group's share based payments
arrangements and also adjusting for restructuring costs. These have been
separately identified by the Directors and adjusted to provide an underlying
measure of financial performance. The reconciliation is set out on the
income statement and Note 6 provides a summary of the amounts arising from the
restructuring costs.
(2) See Note 5
(3) All amounts relate to continuing activities.
(4) All realised gains and losses are recognised in the
consolidated income statement and there is no other comprehensive income.
(5) The notes on pages 20 to 31 form part of the Condensed
consolidated interim financial statements.
(6) There is no other comprehensive income in the years
presented and therefore no separate statement of other comprehensive income is
presented.
Consolidated Statement of Financial Position
Notes As at As at As at
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£'000 £'000 £'000
Non-current assets
Goodwill 7 58,994 77,639 77,639
Intangible assets 7 35,231 31,440 33,236
Property, plant and equipment 8 5,619 5,009 5,498
Deferred tax asset 5,471 7,309 5,670
Right of use assets 2,949 2,655 2,914
108,264 124,052 124,957
Current assets
Inventories 9 8,012 7,631 7,342
Trade and other receivables 10 28,572 26,381 26,882
Cash and cash equivalents 58,766 82,086 74,103
95,350 116,098 108,327
Total assets 203,614 240,150 233,284
Current liabilities
Trade and other payables 11 (37,504) (30,843) (36,419)
Loans and borrowings 12 (1,271) (1,343) (2,842)
Lease liabilities (1,466) (1,212) (1,634)
Provisions (290) (238) (265)
(40,531) (33,636) (41,160)
Net current assets 54,819 82,462 67,167
Total assets less current liabilities 163,083 206,514 192,124
Non-current liabilities
Loans and borrowings 12 (2,821) (2,657) (481)
Lease liabilities (1,700) (1,681) (1,515)
Deferred tax liability (5,471) (7,309) (5,670)
Provisions (302) (314) (301)
(10,294) (11,961) (7,967)
Total liabilities (50,825) (45,597) (49,127)
Net assets 152,789 194,553 184,157
Equity
Share capital 154 154 154
Share premium 140,203 140,045 140,203
Other reserves 8,236 4,540 6,651
ESOP reserve (1,318) (1,318) (1,318)
Retained earnings 5,514 51,132 38,467
152,789 194,553 184,157
Consolidated Statement of Changes in Equity
Share Share Other ESOP Reserve Retained Total
Capital
Premium
Reserves
earnings
equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance As at 1 January 2022 154 140,057 2,264 (1,318) 58,678 199,835
Loss after tax - - - - (7,546) (7,546)
Share issuance costs finalisation - (12) - - - (12)
Share based payments - - 2,276 - - 2,276
Balance As at 30 June 2022 (unaudited) 154 140,045 4,540 (1,318) 51,132 194,553
Loss after tax - - - - (12,665) (12,665)
Issue of shares - 158 (158) - - -
Share-based payments - - 2,269 - - 2,269
Balance as at 31 December 2022 154 140,203 6,651 (1,318) 38,467 184,157
Loss after tax - - - - (32,953) (32,953)
Share-based payments - - 1,585 - - 1,585
Balance as at 30 June 2023 (unaudited) 154 140,203
8,236 (1,318) 5,514 152,789
Consolidated Statement of Cash Flow
Notes Six months ended Six months ended Year ended
30 June
30 June
2023
2022 31 December 2022
(unaudited) (unaudited)
£'000 £'000 £'000
Cash flows from operating activities
Operating loss (33,152) (7,469) (20,015)
Adjustment for non-cash items:
Amortisation of intangible assets 7 3,792 2,466 5,484
Depreciation of tangible assets 8 656 534 1,123
Depreciation of right of use assets 679 477 1,136
Tax (138) - (287)
Loss on impairment of intangible assets 7 235 - 604
Loss on impairment of goodwill 7 18,645 - -
Loss on disposal of tangible assets 8 - 4 4
Share based payment charges 1,683 2,276 4,545
(7,600) (1,712) (7,406)
Changes in working capital
(Increase)/Decrease in inventories (670) 583 872
(Increase) in trade and other receivables (1,689) (2,340) (2,841)
Increase/(Decrease) in trade and other payables (5,330) 246
971
Increase in provisions 25 148 162
(1,363) (6,939) (1,561)
Net cash flow (used in) operating activities (8,963) (8,651) (8,967)
Cash flows from investing activities
Purchase of tangible assets 8 (777) (1,270) (2,348)
Cost of intangible assets 7 (6,023) (4,485) (9,902)
Redemption of short-term investments - 50,000 50,000
Interest received 542 75 458
Net cash flow generated from/(used in) investing activities (6,258) 44,320 38,208
Cash flows from financing activities
Proceeds from new borrowings 12 1,466 1,317 1,243
Loan repayment 12 (666) (351) (990)
Payment of principal of lease liabilities (711) (509) (1,129)
Payment of lease interest (121) (76) (216)
Other Interest paid (84) (76) (158)
Net cash flows generated by financing activities (116) 305 (1,250)
Net increase/(decrease) in cash and cash equivalents (15,337) 35,974 27,991
Cash and cash equivalents at beginning of the period 74,103 46,112 46,112
Closing cash and cash equivalents 58,766 82,086 74,103
Consolidated Notes to the financial statements
1. General information
Pod Point Group Holdings plc (referred to as the "Company") is a public
limited company incorporated in the United Kingdom under the Companies Act
2006 and registered in England. Its registration number is 12431376. The
registered address is 28-42 Banner Street, London EC1Y 8QE.
The principal activity of the Company and its subsidiary undertakings (the
"Group") during the periods presented is that of development and supply of
equipment and systems for recharging electric vehicles. The entire issued
share capital of the Company was admitted to trading on the Main Market of the
London Stock Exchange on 9 November 2021. All figures presented in this
unaudited preliminary announcement are in £ sterling.
When considering the basis of Going Concern, the Directors have made enquiries
and reviewed cash flow forecasts and available facilities for at least the
next 12 months (including subsequent events). Taking these into account the
Directors have formed a judgement, at the time of approving the unaudited
preliminary announcement, that there is a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. This judgement has been formed taking into account the
principal risks and uncertainties that the Group faces.
2. Segment reporting
The Group has four operating and reportable segments
which are considered:
Reportable Segment Operations
Home Activities generated by the sale of charging units to domestic customers for
installation in homes.
Commercial Activities generated by the sale and installation of charging units in
commercial settings, such as the destination, workplace and en-route routes to
market.
Owned Assets Operating activities relating to customer contracts, in which Pod Point owns
the charging point assets but charges end customers for the use of these
assets and, at some sites, charges a fee for provision of media screens on the
units for advertising purposes.
Recurring Operating activities relating to the recurring revenue generated on charging
units, relating to fees charged from the ongoing use of the Pod Point software
and information generated from the management information system.
There are no transactions with a single external customer amounting to 10 per
cent. or more of the Group's revenues.
Work, destination and en-route revenues are routes to market within the
Commercial segment, rather than individual business segments with the types of
installations being similar in all three.
Revenue has been further split into OZEV and non-OZEV revenues for each
segment. OZEV revenues are the portion of revenue generated from an install,
which are claimed from the DVLA by the Group on behalf of customers who are
eligible for the EVHS government grant.
A breakdown of revenues and non-current assets by geographical area is
included in Note 3. Assets and liabilities are not reviewed on a segmental
basis and therefore have not been included in this disclosure.
Segmental Analysis for the six months ended 30 June 2023 (unaudited):
UK UK Owned Recurring Total
Home
Commercial
Assets
Group
£'000 £'000 £'000 £'000 £'000
Revenue, non-OZEV 12,342 12,496 4,052 1,425 30,315
OZEV revenue 73 226 - - 299
Revenue 12,415 12,722 4,052 1,425 30,614
Cost of sales (8,989) (8,976) (2,869) (541) (21,375)
Gross Margin 3,426 3,746 1,183 884 9,239
Other income 600
Administrative Expenses (42,991)
Operating Loss (33,152)
Finance income 542
Finance costs (205)
Loss before tax (32,815)
Segmental Analysis for the six months ended 30 June 2022 (unaudited):
UK UK Owned Recurring Total
Home
Commercial
Assets
Group
£'000 £'000 £'000 £'000 £'000
Revenue, non-OZEV 20,817 11,728 1,489 760 34,794
OZEV revenue 6,402 356 - - 6,758
Revenue 27,219 12,084 1,489 760 41,552
Cost of sales (20,934) (9,308) (587) (335) (31,164)
Gross Margin... 6,285 2,776 902 425 10,388
Administrative Expenses (17,857)
Operating Loss (7,469)
Finance income 75
Finance costs (152)
Loss before tax (7,546)
Segmental Analysis for the year ended 31 December 2022:
UK UK Owned Recurring Total
Home
Commercial
Assets
Group
£'000 £'000 £'000 £'000 £'000
Revenue, non-OZEV 34,891 23,257 4,233 1,896 64,277
OZEV revenue 6,495 637 - - 7,132
Revenue 41,386 23,894 4,233 1,896 71,409
Cost of sales (33,304) (18,721) (1,992) (803) (54,820)
Gross Margin... 8,082 5,173 2,241 1,093 16,589
Other income 1,461
Administrative Expenses (38,065)
Operating Loss (20,015)
Finance income 457
Finance costs (366)
Loss before tax (19,924)
3. Revenue and non-current assets
Revenue, analysed geographically between markets, was
as follows:
Six months ended Six months ended Year Ended
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£'000 £'000 £'000
United Kingdom 30,592 41,463 71,277
Ireland 21 - -
Norway 1 89 132
30,614 41,552 71,409
The geographical analysis of revenue and net revenue is on the basis of the
country of origin in which the client is invoiced.
Revenue, split between OZEV revenues and non-OZEV revenues was as follows:
Six months ended Six months ended Year Ended
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£'000 £'000 £'000
Non-OZEV revenue 30,315 34,794 64,277
OZEV revenue 299 6,758 7,132
30,614 41,552 71,409
All OZEV revenue was earned in the UK. Non-current assets are all held within
the UK for all periods presented.
Other income represents grant income relating to the R&D expenditure
credit for relief on the Group's research and development costs.
4. Directors and employees
The table below presents the staff costs of these persons,
including those in respect of the Directors, recognised in the income
statement.
Six months ended Six months ended Year Ended
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£'000 £'000 £'000
Wages and salaries 15,956 9,602 20,699
Social security costs 1,843 1,086 3,118
Costs of defined contribution scheme 639 660 266
Net share-based payment expense 2,244 2,275 4,545
20,682 13,623 28,628
Staff costs presented in this note reflect the total wage, tax and pension
cost relating to employees of the Group. These costs are allocated between
administrative expenses, cost of sales or capitalised where appropriate as
part of Software Development intangible assets. The allocation between these
areas is dependent on the area of business the employee works in and the
activities they have undertaken.
During the 6 months ended 30 June 2023, £4.2 million of staff costs were
capitalised (H1 2022: £2.8 million, year ended 31 December 2022: £6.7
million).
5. Restructuring costs
Restructuring costs, for the purposes of presenting non-IFRS measure of
adjusted EBITDA are as follows:
Six months ended Six months ended Year Ended
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£'000 £'000 £'000
Restructuring costs 359 - 57
Restructuring costs in 2023 related to changes within the senior management
team. Restructuring costs in 2022 related to the closure of the Norway branch.
6. Finance income and finance costs
Net financing costs comprise bank interest income and interest expense on
borrowings, and interest expense on lease liabilities.
Six months ended Six months ended
30 June
30 June Year Ended
2023
2022
31 December
2022
(unaudited) (unaudited)
£'000 £'000 £'000
Interest on bank deposits 542 75 457
Finance Income 542 75 457
Interest on loans and bonds (84) (92) (150)
Interest on lease liabilities (121) (60) (216)
Finance Costs (205) (152) (366)
Net finance income/(costs) recognised in the income 337 (77) 91
statement
7. Intangible assets
Intangible assets as at 30 June 2023 (unaudited):
Development Brand Customer Goodwill Total
Relationships
£'000 £'000 £'000 £'000 £'000
Cost:
At 1 January 2023 20,702 13,940 13,371 77,639 125,652
Additions 6,023 - - - 6,023
At 30 June 2023 26,725 13,940 13,371 77,639 131,675
Accumulated amortisation and impairment:
At 1 January 2023 10,146 2,033 2,599 - 14,778
Amortisation 2,997 349 446 - 3,792
Impairment 235 - - 18,645 18,880
At 30 June 2023 13,378 2,382 3,045 18,645 37,450
Carrying amounts:
At 30 June 2023 13,347 11,558 10,326 58,994 94,225
Intangible assets as at 30 June 2022 (unaudited):
Development Brand Customer Goodwill Total
Relationships
£'000 £'000 £'000 £'000 £'000
Cost:
At 1 January 2022 10,800 13,940 13,371 77,639 115,750
Additions 4,485 - - - 4,485
At 30 June 2022 15,285 13,940 13,371 77,639 120,235
Accumulated amortisation:
At 1 January 2022 5,646 1,336 1,708 - 8,690
Amortisation 1,671 349 446 - 2,466
At 30 June 2022 7,317 1,685 2,154 - 11,156
Carrying amounts:
At 30 June 2022 7,968 12,255 11,217 77,639 109,079
Intangible assets as at 31 December 2022:
Development Brand Customer Goodwill Total
Relationships
£'000 £'000 £'000 £'000 £'000
Cost:
At 1 January 2022 10,800 13,940 13,371 77,639 115,750
Additions 9,902 - - - 9,902
At 31 December 2022 20,702 13,940 13,371 77,639 125,652
Accumulated amortisation and impairment:
At 1 January 2022 5,646 1,336 1,708 - 8,690
Amortisation 3,896 697 891 - 5,484
Impairment 604 - - - 604
At 31 December 2022 10,146 2,033 2,599 - 14,778
Carrying amounts:
At 31 December 2022 10,556 11,907 10,772 77,639 110,874
In accordance with the provisions of IAS36 'Impairment of Assets' the
allocation to the individual cash generating unit ("CGU") of the goodwill
recognised on the purchase of PPH was completed during the year ended 31st
December 2021, being the end of the first annual period beginning after the
relevant acquisition date of PPH by the Company. An impairment loss of £18.6m
has been recognised during H1 2023.
An impairment review has been performed comparing book values (including
goodwill) to value in use of the CGU at 30 June 2023. The recoverable amount
of the CGU was determined from value in use calculations based on a discounted
cash flow model. Key assumptions in which management has based its
determination of value in use include the number of forecasted car
registrations used to project revenue growth and estimated market penetration
for the home and commercial markets. Car registration forecasts are based upon
external data from the Society of Motor Manufacturers and Traders ("SMMT") and
the Government ban on new internal combustion cars from 2030, while market
share assumptions are determined using historical data and experience.
Management projected cash flows to 2030, a period longer than 5 years. This
was considered appropriate as it represents the period to the Government's
committed date of the ban on the sale of new petrol and diesel cars. A
weighted average cost of capital (WACC) of 13% has been applied.
Given decreases in home market penetration in H1 2023 and other macro-economic
factors, sensitivities have been performed around home and commercial
penetration, sales price and overheads inflation which resulted in the
carrying value exceeding the value in use by £18.6m and therefore an
impairment loss has been recognised. No other reasonably possible changes in
assumptions would cause the carrying amount to further exceed the recoverable
amount.
8. Property, Plant and Equipment
Property Plant and Equipment as at 30 June 2023 (unaudited):
Other Property, Plant and Equipment Owned Total
Assets
£'000 £'000 £'000
Cost:
At 1 January 2023 1,659 6,496 8,155
Additions 183 594 777
At 30 June 2023 1,842 7,090 8,932
Accumulated depreciation:
At 1 January 2023 1,081 1,576 2,657
Depreciation 178 478 656
At 30 June 2023 1,259 2,054 3,313
Carrying amounts:
At 30 June 2023 583 5,036 5,619
Property Plant and Equipment as at 30 June 2022 (unaudited):
Other Property, Plant and Equipment Owned Total
Assets
£'000 £'000 £'000
Cost:
At 1 January 2022 1,116 4,698 5,814
Additions 395 875 1,270
Disposals - (7) (7)
At 30 June 2022 1,511 5,566 7,077
Accumulated depreciation:
At 1 January 2022 756 781 1,537
Depreciation 154 380 534
Disposals - (3) (3)
At 30 June 2022 910 1,158 2,068
Carrying amounts:
At 30 June 2022 601 4,408 5,009
Property Plant and Equipment as at 31 December 2022:
Other Property, Plant and Equipment Owned Total
Assets
£'000 £'000 £'000
Cost:
At 1 January 2022 1,116 4,698 5,814
Additions 543 1,805 2,348
Disposals - (7) (7)
At 31 December 2022 1,659 6,496 8,155
Accumulated depreciation:
At 1 January 2022 756 781 1,537
Depreciation 325 798 1,123
Disposals - (3) (3)
At 31 December 2022 1,081 1,576 2,657
Carrying amounts:
At 31 December 2022 578 4,920 5,498
9. Inventories
As at As at As at
31 December
30 June 30 June
2022
2023 2022
(unaudited) (unaudited)
£'000 £'000 £'000
Finished goods 6,733 5,127 5,523
Work in progress 1,279 2,504 1,819
8,012 7,631 7,342
The cost of inventories recognised as an expense during H1 2023 in respect of
continuing operations was £10.1m (H1 2022: £15.8 million, year ended 31
December 2022: £28.8m).
Included within work in progress is hardware purchased for installation in
progress but not yet complete, time spent on installations in progress but not
yet complete and invoices received against installations in progress but not
yet complete.
10. Trade and other receivables
As at As at As at
31 December
30 June 30 June
2022
2023 2022
(unaudited) (unaudited)
£'000 £'000 £'000
Trade receivables 18,293 17,691 18,841
Loss allowance (912) (369) (507)
17,381 17,322 18,334
Other receivables 1,818 447 940
R&D tax credit receivable 1,090 - 1,174
Prepayments and accrued income 8,283 8,612 6,434
28,572 26,381 26,882
11. Trade and other payables
As at As at As at
31 December
30 June 30 June
2022
2023 2022
(unaudited) (unaudited)
£'000 £'000 £'000
Trade payables 6,513 7,099 9,096
Other taxation and social security 1,575 2,212 3,098
Accruals and deferred revenue 24,320 20,012 21,163
Other payables 5,096 1,520 3,062
37,504 30,843 36,419
There is no material difference between the carrying value and fair value
of trade and other payables presented.
12. Loans and borrowings
As at As at As at
31 December
30 June 30 June
2022
2023 2022
(unaudited) (unaudited)
£'000 £'000
Current liabilities
Secured bank loan 1,271 1,343 2,842
Non-current liabilities
Secured bank loan 2,821 2,657 481
Total loans and borrowings 4,092 4,000 3,323
During the 11 months ended 31 December 2020, the
Group entered into £3.5 million facility agreement with Triodos Bank UK
Limited for a period of 5 years, to fund charging units owned by the Group and
installed at customer sites. The facility is structured as a construction
facility while the assets are being installed, at which point the outstanding
balance will become an operating facility. The interest rate is fixed at 3.5
per cent. The loan is repayable in eighteen quarterly instalments starting one
quarter after the start of the operating facility.
An additional loan was entered into with Triodos Bank UK Limited during the
year ended 31 December 2022, for £1.25 million under the same facility
agreement. The interest rate is fixed at 4.969 per cent. The loan is repayable
in eighteen quarterly instalments starting from the first payment date.
No changes in liabilities arising from financing activities has been
identified during the period ended 30 June 2023 or are expected in the near
future
13. Financial Instruments
The Group had the following financial assets and liabilities. The amounts
below are contractual undiscounted cash flows and include both interest and
principal amounts.
Categorisation within the hierarchy, measured or disclosed at fair value, has
been determined based on the lowest level of input that is significant to the
fair value measurement as follows:
· Level 1 - valued using quoted prices in active markets for
identical assets or liabilities
· Level 2 - valued by reference to valuation techniques using
observable inputs other than quoted prices included within Level 1
· Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data
As at As at As at
31 December
30 June 30 June
2022
2023 2022
(unaudited) (unaudited)
£'000 £'000 £'000
Cash and cash equivalents 58,766 82,086 74,103
Trade and other receivables 19,199 17,769 19,274
Accrued Income 6,740 7,345 5,195
Total financial assets 84,705 107,200 98,572
Trade and other payables 11,609 8,619 12,158
Accruals 11,081 9,076 9,210
Leases 3,166 2,893 3,149
Loans and borrowings 4,092 4,000 3,323
Total financial liabilities 29,948 24,588 27,840
All financial assets and financial liabilities shown above, and loans and
borrowings, are valued at carrying amount or at fair value using Level 2
measurements. There have been no transfers between levels in any of the years.
Financial assets
The Group classifies its financial assets into the following categories: cash
and cash equivalents, trade and other receivables and accrued income. The
classification depends on the purpose for which the assets are held. The
classification is first performed at initial recognition and then re-evaluated
at every reporting date for financial assets other than those held at fair
value through the income statement.
Financial liabilities
The Group classifies its financial liabilities into the following categories:
trade and other payables, loans and borrowings and other non-current
liabilities.
The Directors consider that the carrying amount for all financial assets and
liabilities which are not held at fair value through profit or loss
approximates to their fair value.
14. Share based payments
Charge to the income statement:
The charge to the income statement is set out below:
Six months ended Six months ended Year ended
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£'000 £'000 £'000
IPO restricted share award 448 1,457 2,238
IPO performance share award 392 468 759
Share incentive plan 191 179 360
Long-term incentive plan 553 474 611
Deferred share bonus plan 392 - 577
Total share-based payment expense 1,976 2,578 4,545
National insurance on share based payment awards of £0.3 million (H1 2022:
£0.3 million, year ended 31 December 2022: £0.6 million) has also been
charged to the income statement.
15. Loss per share
Basic earnings per share is calculated by dividing the loss attributable to
the equity holders of the Group by the weighted average number of shares in
issue during the year.
The group has dilutive ordinary shares for H1 2023, H1 2022 and the year ended
31 December 2022, these being share options granted to employees. As the Group
has incurred a loss in all periods, the diluted loss per share is the same as
the basic earnings per share as the loss has an anti-dilutive effect.
Six months ended Six months ended Year ended
30 June
30 June
31 December
2023
2022
2022
(unaudited) (unaudited)
£ £ £
Loss for the period attributable to equity holders 32,952,930 7,546,564 20,211,814
Basic and diluted weighted average number of shares in issue 153,403,537 153,405,628
153,473,724
Earnings/(Loss) per share (Basic and Diluted) (0.22) (0.05) (0.13)
16. Related Parties
Transactions with Shareholders
During the six months ended 30 June 2023, the Group had the following
transactions with group companies part of the EDF Group (unaudited):
Group Company Sales of goods Purchase of goods
'£000 '£000
EDF Energy Limited 138 -
EDF Energy Customers Limited - 143
During the six months ended 30 June 2022, the Group had the following
transactions with group companies part of the EDF Group (unaudited):
Group Company Sales of goods Purchase of goods
'£000 '£000
EDF Energy Limited 43 -
EDF Energy Customers Limited - 273
During the year ending 31 December 2022, the Group had the following
transactions with group companies part of the EDF Group:
Group Company Sales of goods Purchase of goods
'£000 '£000
EDF Energy Limited 335 -
EDF Energy Customers Limited - 390
Transactions with related parties who are not members
of the Group
During the H1 2023, the Group had the following
transactions with a related party who is not a member of the Group. Imtech
Inviron Limited is a related party by virtue of their ultimate parent and
controlling party being Électricité de France S.A. (see note 18):
• Sale of goods of £0.2 million (H1 2022: £0.1
million, year ended 31 December 2022: £0.2 million)
17. Post balance sheet events
On 6 July 2023, Erik Fairbairn stepped down as Chief Executive Officer
("CEO"). Andy Palmer, who at the time was acting as Senior Independent
Director of the Group, has been appointed as interim CEO.
18. Ultimate parent undertaking and controlling party
The immediate parent company of the Company and its subsidiaries is EDF Energy
Customers Limited, a company registered in the United Kingdom.
The immediate parent company of EDF Energy Customers Limited is EDF Energy
Limited, a company registered in the United Kingdom.
In all periods presented, Électricité de France SA, a company incorporated
in France, is regarded by the Directors as the Company's ultimate parent
company and controlling party. This is the largest group for which
consolidated financial statements are prepared. Copies of that company's
consolidated financial statements may be obtained from the registered office
at Électricité de France SA, 22-30 Avenue de Wagram, 75382, Paris, Cedex 08,
France.
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