TIDMAMTE
RNS Number : 9826N
AMTE Power PLC
05 October 2021
AMTE Power plc
Final Results
'A Successful Year establishing the Pathway to Volume
Production'
AMTE Power plc ("AMTE Power", the "Company" and together with
its subsidiary undertakings, the "Group"), a developer and
manufacturer of lithium-ion and sodium-ion battery cells for
specialist markets, announces Final Results for the year to 30 June
2021.
Operational and Strategic Highlights
-- All three of the Group's highly differentiated battery cells
in development made good progress during the year and remain on
track for one to be released in each of the next three years.
-- In June AMTE Power was selected as the lead in a new
Government funded three-year project called ULTRA focused on
bringing two AMTE Power lithium-ion batteries to automotive
readiness alongside key brands. BMW and Arrival sit on the project
steering group.
-- Under a framework agreement with the publicly funded GBP130
million UK Battery Industrialisation Centre ("UKBIC") AMTE Power is
one of the first to take advantage of this facility as part of the
scale up of its products in advance of commercialisation.
-- As we move towards production the active engagement mix has
moved away from development orientated engagements towards
commercial supply engagements, up over the six months to 30 June
2021 from 9 to 19 out of a total of 68 active engagements.
Pathway to Volume Production
-- Production expansion plans for a UK Gigafactory (initially
2GWh increasing to 10GWh and beyond over time) have made
substantial progress. The Group has engaged with local authorities
for regions with preferred sites and national funding sources to
secure government grants and developed detailed designs.
-- The Group expects to confirm the site of its UK based
Gigafactory and government funding support in 2022.
-- Constructive collaboration and dialogue with a wide range of
commercial partners providing underlying confidence in the route to
commercialisation for the Group's portfolio of battery
products.
-- Post year end announced signing of shareholder agreement to
formalise joint venture with InfraNomics in Australia, targeting
the energy storage sector.
-- The joint venture, called Bardan Cells, will operate from
Australia's "Lithium Valley" Kwinana Industrial Area, and has plans
to build and fund a 200,000 cell micro production line as a
forerunner to establishing a 1-2GWh per annum Gigafactory.
Financial Highlights
-- UK and European grants plus income from commercial partners
led to turnover increasing to GBP2.0 million (2020: GBP1.3
million).
-- Completed a successful IPO with admission to AIM on 12 March
2021 alongside an oversubscribed placing to new and existing
shareholders raising gross proceeds of GBP12.9 million.
-- Additional funds have enabled the acceleration of investment
into key people, the completion of first phases of both product
development and the planning for an AMTE Power Gigafactory.
-- Adjusted EBITDA of (GBP3.2m) (2020: (GBP2.0m)) and adjusted
loss before tax of GBP3.1m (2020: (GBP2.0m)) following the
adjustment for share based payments of GBP0.9m in 2021 and GBP0.1m
in 2020.
-- Cash and cash equivalents at 30 June 2021 of GBP9.3m (2020: GBP1.0m).
Financial Outlook
-- Good visibility on securing additional grant funding in line with IPO expectations.
-- Product releases will provide increasing visibility on scale
and timing of prototype and product revenues.
Kevin Brundish, CEO of AMTE Power said:
"This has been a successful period for the business. While the
IPO was a major focus and success for the Company, we have also
made excellent progress towards commercialising our portfolio of
battery products. We are collaborating well with Government funded
organisations, tasked with accelerating the UK's move away from
fossil fuels to battery power, such as Automotive Propulsion
Centre, the Faraday Institute and the UK BIC. Our products are
being tested with these bodies and commercial partners for being
suitable for large scale manufacture as well as being capable of
meeting the commercial needs of our future customers.
The Government is actively driving the UK to become a leading
centre for battery production and future innovation. Based on our
direct conversations with government and their public statements,
we believe they continue to be fully committed and this makes for
an ideal backdrop for AMTE Power to deliver on our plans.
We continue to focus on the development of multiple cells for a
variety of specialist markets, not just automotive, all with
sufficient scale to make them highly commercially attractive."
AMTE Power will be hosting a live webcast for analysts and
investors on 05 October 2021 at 10.00am BST. To register your
interest in participating, please go to:
https://www.investormeetcompany.com/amte-power-plc/register-investor
For further information contact:
AMTE Power plc Tel: +44 (0)1847 867 200
Kevin Brundish (Chief Executive Officer)
Adam Westcott (Chief Financial Officer)
WH Ireland Limited (NOMAD and Joint Broker) Tel: +44 (0)207 220 1666
Chris Fielding / Ben Good
SI Capital Limited (Joint Broker) Tel: +44 (0)1483 413 500
Nick Emerson / Nick Briers
Novella Communications Tel: +44 (0)203 151 7008
Tim Robertson / Fergus Young
ABOUT AMTE POWER PLC
AMTE Power was founded in 2013 and is a leading developer and
manufacturer of lithium-ion battery cells for specialist markets.
In March 2021, the Company listed on the AIM market of the London
Stock Exchange. The Company is focused on launching a series of
next generation battery cells based on new chemistries and cell
structures that are designed to solve key problems in power
delivery, energy performance, and safety. These new products are
targeted at a range of specialist markets including the automotive
industry, oil and gas market and energy storage sector. AMTE's
purpose-built cell manufacturing facility in Thurso, Scotland has
the second largest cell manufacturing capacity in the UK and the
Company also has a product development team based in Oxford. For
further information visit the Company's website:
www.amtepower.com
Chair's statement
I am delighted to be making my first full year results statement
for AMTE Power as a public company. The successful IPO earlier this
year has placed the business in a strong position with the
financial support to achieve its immediate commercial targets, and
in the 12 months under review significant progress has already been
made towards those targets.
Strategy
AMTE Power was created to focus on the requirements of
specialist customers whose power, performance and endurance needs
are outside the scope of the mainstream international battery
manufacturers and also to not simply be a developer but have the
manufacturing capability to deliver products. Despite being a
specialist, the markets and customers being targeted are
significant.
Currently, the Group has three highly differentiated battery
cells in development, with one expected to be released in each of
the next three years, and a pipeline of technologies for future
development. Alongside proving the capabilities of the individual
cells to be manufactured at scale and their ability to meet the
needs of our commercial partners and future customers, the Group
will need to build a new UK manufacturing facility to expand
capacity, initially to approximately 2GWh per annum. The market
will ultimately determine the speed and scale of our expansion, and
we have not set an upper limit, with plans that include scale-up to
10GWh per annum and beyond. We are currently expecting to have our
expanded volume manufacturing plant in place by 2024/25. Progress
on product development and intellectual property, commercial
partnerships and the building of the new manufacturing facility are
the key elements of the Group's focus.
Delivery
Despite completing a very successful IPO during the period under
review, the management team also delivered against its operational
targets. Product development continued apace throughout the year.
We are currently evaluating at UKBIC the speed of manufacture of
both the Ultra High Power and Ultra Energy cells, with early
results being positive for both cells. At the year end, the Group
was involved in 68 active engagements on a range of opportunities
including commercial development and product request opportunities
as well as advanced discussions to create consortia to secure grant
funding for focused projects that support our cell development
programmes. Next year the Group intends to identify its preferred
site for building a new manufacturing facility. The Group expects
to attract significant government support to help fund the building
of the new site.
The Board
As part of the IPO, the Board was pleased to welcome Alyson
Levett as a Non-Executive Director. Alyson joined the Board in
January 2021 and brings significant public company experience. Adam
Westcott, Chief Financial Officer, also joined the Board during the
financial year (December 2020) but had been part of the senior
management team since joining the Company in January 2018. In June
2021, Adam decided to leave the Company to take up a new role and
will be stepping down as director at the upcoming Annual General
Meeting and I would like to thank Adam for his significant
contribution to the business.
I am also delighted to welcome James Hobson, an experienced AIM
company finance director, who joined on 4(th) October 2021 to
succeed Adam.
Employees
It would be remiss of me not to thank our employees for all of
their efforts in this year of significant change and evolution in
our company. We have had to deal with the impact of COVID across
our business and our customers and suppliers. In addition, we have
significantly grown the team as we look towards product
release.
Outlook
AMTE Power is in a good position. There is a high level of
commercial interest in our products. We remain on target with the
plans to achieve commercialisation we set out at the time of our
IPO and we can see new opportunities arising as we collaborate more
fully with our range of partners. That said, our focus will remain
on progressing our three core specialist battery cells into full
scale production.
David Morgan
Independent Non-Executive Chair
CEO's Review
Introduction
FY21 has been an important year for AMTE Power. Firstly, the
Group completed a successful IPO in March 2021 raising new capital
in an oversubscribed placing and, secondly, there was a step change
in the Government's commitment to making the UK a centre of
excellence for battery innovation and production. Under the "Green
Industrial Revolution" the Government set out its plans for
decarbonisation with a flagship policy of switching the motor
industry to electric vehicles by 2030.
For AMTE Power, becoming a public company is part of our
progression towards the commercialisation of our portfolio of
battery cells and the Government's active involvement in our
industry is fundamental to the success of the sector. As a result,
we believe the Group is well placed to achieve its commercial
targets.
Financial review
As a Group we grew turnover 55% to GBP2.0m compared to GBP1.3m
for the previous period. This was driven by an increase in grant
income of 176% compared to the previous period. Grant income
accounted for 65% of turnover in the year (up from 37% in 2020).
The Group continues to invest in its product development, resulting
in operating losses of GBP3.8m for the year (2020: GBP1.9m).
The dominant event in the year was the raising of GBP12.9m of
gross proceeds and the IPO for the business, resulting in a strong
financial platform from which to finalise the product development
and lay the groundwork for the building of our own Gigafactory.
Operational review
We made good progress on the four key elements which come
together to progress the portfolio of battery cells towards
commercialisation.
Product development
The Group's most developed product for the automotive battery
cell market is Ultra High Power, a rechargeable pouch format
battery cell. Ultra High Power is being developed in conjunction
with several specialist manufacturers in the automotive industry
and has the ability to deliver power consistently at a very high
rate, thereby enhancing acceleration in high performance vehicles.
At first, the Ultra High Power solely targeted the high-performance
motor industry but the potential is clear to also target mainstream
performance cars and advanced interest from motor manufacturers
reflects this.
The Group's cell for the oil and gas market is Ultra Prime, a
single use cylindrical battery cell. Ultra Prime is being designed
with very high energy and high temperature performance for use in
challenging environments. In addition to these features, the Ultra
Prime cell is designed to have a very long standby life with no
loss of performance, making it ideal for use not only where
restricted access is a key consideration, but also where the
battery needs to be in situ for an extended period.
We already have a development and supply agreement for our Ultra
Prime cell with an equipment manufacturer within the oil and gas
sector. Cells manufactured in low volume have already demonstrated
that they meet the performance required for our client base, with
growing evidence, as time passes, of the longevity of the cell. The
manufacture of cells is now being transferred back to Thurso in
readiness for higher volumes, with a target of up to 1 million
cells per annum, for onward supply to the client for industry
certification testing prior to supply commencing. Early interest is
also being seen from other market sectors, in particular defence,
due to its very high energy density.
Ultra Safe, aimed at the energy storage market, is based
chemically on sodium, an element which is more readily available,
and at a significantly lower price, than lithium. Good progress was
made during the year towards product release and, whilst at an
earlier stage than the other pipeline products, it has the greatest
opportunity to be a transformational product in the battery market
place, given the significant potential advantages it has over
lithium-ion-based battery cells as a storage medium in terms of
safety, efficacy and cost.
Earlier this year, AMTE Power signed a framework agreement with
the publicly funded UK Battery Industrialisation Centre ("UKBIC").
UKBIC is now coming online and AMTE Power is one of the first to
take advantage of this facility as it begins the scale-up of its
Ultra High Power and Ultra Energy cells. This is an important step
in demonstrating that AMTE Power's products can be manufactured at
a speed consistent with Gigafactory rates of production
("Gigapace") and we are pleased to report that certain aspects of
the manufacturing steps are already achieving the rate of
production that will be required if we are to be able to meet the
expected level of customer demand and we are not aware of any
impediments in other aspects.
Intellectual Property
The cells under development have embedded innovation and
intellectual property, which is licensed from third parties. AMTE
Power has also generated its own intellectual property which is
protected through patenting, registered designs and trade marks.
The Ultra brand of products is now almost fully trade marked for
use. Three patent applications have been submitted in the reported
period to strengthen the IP base in the Group.
Key Performance Indicators ('KPIs')
The Board reviews a range of targeted KPIs, which measure the
progress being made by the Company. Product KPI's link development
milestones and product performance to the product release dates.
Intellectual Property KPI's such as patent applications, product
trademarks and registered designs, are monitored to ensure our
products are protected. Commercial KPIs link the product
development activities to the sales pipeline and engagement of
commercialisation partners.
Operational KPIs ensure that overheads and cash resources are
tightly controlled. Industrialisation KPI's monitor our progress
towards large scale manufacturing and link to our product
development end user client engagements. The most important
financial KPIs are the cash position, turnover and profitability of
the Company, which remain under regular review by the management
and board, the control of which is also reviewed by the Audit and
Risk Committee.
Commercial collaboration
A key signal as to the future demand for our battery cells is
the involvement of OEMs in key projects, such as ULTRA, a new
government funded three-year project which AMTE Power is to lead
and which focuses on bringing two AMTE Power lithium-ion batteries
to automotive readiness alongside key industry brands. This
project, and others like it to come, demonstrates the high level of
interest in our battery cells both from government and commercial
partners. Our objective is to secure long-term engagements with
clients which are aligned with our timeline for when our products
become accredited and ready for volume production. Vehicle OEMs
including BMW and Arrival are part of the project's steering
group.
Gigafactory
Alongside the product development, we continued to progress our
plans for a "Gigafactory" as part of the proposed expansion of our
production capability, developing our ability to meet the expected
customer demand for our products. Discussions with UK Government
funding sources are well developed and we expect to gain financial
support behind our expansion plans.
The Group has also continued to develop its relationship with
InfraNomics, a leading Australian infrastructure provider, to
create a new JV that will manufacture battery cells for use in
power storage systems with initial plans for 2GWh per annum
production levels in Australia. As recently announced, the new
venture will operate from the "Lithium Valley" Kwinana Industrial
zone in Western Australia, an area dedicated to the development of
lithium-related products and which contains one of the largest raw
material deposits in the world for li ion batteries.
Outlook
Electrification is happening and is driven by a global shift
away from fossil fuels and in the UK by a government determined
that the country plays a central role in battery production. AMTE
Power is a specialist within a very large market and offers highly
differentiated products to substantial corporations whose needs are
different from the mainstream. In the trials and tests we are
currently conducting we know we are meeting their varying
requirements for additional power, durability and extended life,
and as a consequence we are excited by the future potential of our
business.
Kevin Brundish
Chief Executive Officer
Financial Review
The year was dominated by the successful fundraising and IPO in
March 2021, where we raised gross proceeds of GBP12.9m to set us up
nicely to complete the product development programmes we are
currently undertaking. As a result of the over-subscription we have
been able to accelerate our investment in people as we look to
complete the development work on the products. Aligned with this
has been the opportunity to accelerate the preparation work
required to deliver our own Gigafactory.
At year end our cash position was GBP9.3m (2020: GBP1.0m) giving
the Group a very healthy financial platform from which to grow. We
have used the additional funds to invest in our electrochemists and
engineers, core contributors to the development of battery cells,
as well as increasing our access to the UKBIC, which should enable
us to exhibit at an earlier stage than expected the production
rates necessary to meet Gigafactory standards, "Gigapace".
Despite the significant challenges presented to us by COVID-19,
we have managed to keep the facility in Thurso open and continue
with product development. At the same time we closed our sales
office in London, and temporarily shut our development office near
Oxford (now re-opened). With both scenarios, however, we have been
able to continue to work with the same effectiveness as we did
prior to these mitigating actions designed to reduce the risk to
our employees.
Trading performance
Turnover grew over 55% compared with the previous period to
GBP2.0m (2020: GBP1.3m). This was all the more impressive as 2020
was a 15-month period. The turnover was split between commercial
contracts revenue (35% (2020: 63%)) and grant income, which
supports the ongoing development programmes of the business. Gross
margins increased to 16% for the year (2020: 3%). This was despite
the increased share of turnover derived from grant income and
highlights how the increase in output at the facility and bringing
more work in house has enabled us to improve our cost base compared
to the previous year. This has also helped to counter the trend in
increase in unit costs for items such as materials and access to
facilities.
Operating losses increased to GBP3.8m (2020: GBP1.9m). The
primary driver of this was an increase in headcount over the year,
rising from 55 as at 30 June 2020 to 68 at 30 June 2021. Adjusted
EBITDA moved to (GBP3.2m) (2020: GBP2.0m).
Adjusted EBITDA is defined as operating losses after
amortisation, depreciation and equity settled share based payments
have been added back and payments against licence obligations and
liabilities for property right of use assets deducted.
Investment revenues for the period were GBP28k (2020: GBP17k),
while net finance costs totalled GBP246k (2020: GBP242k). These
finance costs included interest recognised from lease liabilities
over right of use assets as well as from licence obligations. We
benefited from R&D tax claims, resulting in a positive tax
charge of GBP277k for the year (2020: GBP222k). As the business is
currently loss making, there is no corporation tax payable on
earnings.
The diluted loss per share for the year to 30 June 2021 was
12.59 pence (2020: 8.13 pence loss). The change in loss per share
was due to the increased operating costs of the business, only
partially offset by the additional shares issued as part of the
fundraises.
The operating figures also include share-based payments arriving
from the options awarded to employees. As a result of the IPO, all
of the options held at the time vested and so this year experienced
a significant one-off charge of GBP979k in share-based payments
within the operating costs of the business.
Cash generation
Our cash position at the end of the year was GBP9.3m (2020:
GBP0.9m). Operating activities resulted in GBP2.5m of cash outflow
for the period to 30 June 2021 (2020: GBP1.3m). This was after a
net investment in working capital of GBP0.2m (2020: GBP0.1m).
Investment in PPE was GBP0.3m and funding on intangible assets was
GBP0.7m. Financing of borrowings, asset financing and licence
obligations totalled GBP0.9m. This was funded through the net
proceeds of equity fundraising of GBP12.3m (2020: GBP3.0m). In
January 2021 the Company issued bonus shares to all shareholders of
400 ordinary shares for each 1 ordinary share held. This had no
impact on the cash position.
Research and development
Development formed a material part of the Group's activities
this year, with a significant portion relating to the development
of the Group's own products. The Group capitalised development
costs of GBP3.1m for the year (2020: GBP3.6m) in relation to four
of its products where it believes there are suitable, near and
mid-term sales opportunities. The Group had qualifying research and
development costs of GBP1.6m (2020: GBP1.6m) against which it
secured both R&D tax credits (recognised as tax relief) and
R&D expenditure credits (recognised as other income and taxed
accordingly).
Foreign currency exposure
The Group currently faces relatively modest currency exposure on
its foreign currency transactions; however, it does expect this to
increase in the future as exposure to both foreign currency
Translation risk and transaction risk is expected to increase. The
Group maintains a natural hedge to transactional exposure by
invoicing in foreign currencies where appropriate to minimise the
difference between cash inflows and outflows in the respective
currencies.
IFRS 16 "Leases"
The Group follows the accounting principal whereby all leased
assets are reported in the statement of financial position,
recognising an asset for the right to use the leased item and a
liability for the present value of its future lease payments. This
resulted in the recognition of right-of-use assets of GBP0.9m and
corresponding lease liabilities in the period to 30 June 2020, but
nil in the most recent year.
IP rights
The Group recognised the right to use the IP that it licensed in
as intangible assets, adding GBP0.3m (2020: GBP11.8m) to the value
in the year along with an equivalent licence obligation. This
resulted in interest and amortisation costs of GBP2.3m (2020:
GBP2.1m) which were capitalised as development costs linked to the
product development programmes.
Adam Westcott
Chief Financial Officer
Key Financials
Year
ended
30 June
2021 15 months ended 30 June 2020
GBP GBP
Turnover GBP000s 1,967 1,265
Gross Profit GBP000s 322 34
Gross Margin % 16.3% 2.6%
Operating Losses GBP000s (3,763) (1,879)
Adjusted EBITDA GBP000s (3,228) (2,024)
Losses After Tax GBP000s (3,705) (1,882)
Diluted EPS pence (12.59) (8.13)
Cash flow from operating
activities GBP000s (2,612) (1,145)
Capital expenditure GBP000s (252) (120)
Cash balance GBP000s 9,272 950
EVENTS AFTER THE BALANCE SHEET DATE
Post year end the Group announced the signing of a shareholder
agreement to formalise joint venture with InfraNomics in Australia,
targeting the energy storage sector. The joint venture, called
Bardan Cells, will operate from Australia's "Lithium Valley"
Kwinana Industrial Area, and has plans to build and fund a 200,000
cell micro production line as a forerunner to establishing a 1-2GWh
per annum Gigafactory.
GROUP STATEMENT OF COMPREHENSIVE INCOME
Year 15 months
ended ended
30 June 30 June
2021 2020
GBP GBP
Turnover 1,967,348 1,264,855
Cost of sales (1,645,708) (1,231,343)
Gross profit 321,640 33,512
Other operating income 289,062 392,881
Administrative expenses (4,374,028) (2,305,451)
Operating loss (3,763,326) (1,879,058)
Investment revenues 27,576 16,741
Finance costs (245,893) (241,740)
Loss before taxation (3,981,643) (2,104,057)
Income tax income 277,128 222,271
Loss and total comprehensive income
for the year (3,704,515) (1,881,786)
Earnings per share
Basic (pence per share) (12.59) (8.13)
Diluted (pence per share) (12.59) (8.13)
All results were derived from continuing operations.
The notes on pages 11 - 67 form part of these financial
statements.
GROUP STATEMENT OF FINANCIAL POSITION
30 June 30 June 2020 01 April
2021 2020
GBP GBP GBP
Non-current assets
Intangible assets 20,998,109 18,061,139 3,064,255
Property, plant and equipment 2,235,439 2,311,802 1,454,526
Investments 23,626 2 -
23,257,174 20,372,943 4,518,781
Current assets
Inventories 280,666 219,133 22,916
Finance lease receivables - - 59,553
Trade and other receivables 1,823,505 898,993 702,467
Current tax recoverable 240,000 96,543 99,136
Cash and cash equivalents 9,272,416 949,569 381,856
11,616,587 2,164,238 1,265,928
Current liabilities
Borrowings 20,365 20,350 9,624
Lease liabilities 147,453 106,316 149,118
License liabilities 676,191 500,401 49,789
Derivative financial instruments 11,466 359 -
Trade and other payables 957,540 609,859 273,654
Deferred revenue 28,564 28,564 20,090
1,841,579 1,265,849 502,275
Net current assets 9,775,008 898,389 763,653
Non-current liabilities
Borrowings 75,636 105,089 30,536
Lease liabilities 853,465 1,001,305 64,551
License liabilities 16,188,357 14,595,654 1,785,134
Long term provisions 209,082 208,309 182,983
Deferred revenue 2,299,682 1,898,091 915,642
19,626,222 17,808,448 2,978,846
Net assets 13,405,960 3,462,884 2,303,588
Equity
Called up share capital 176,223 321 268
Share premium account 20,808,951 8,067,562 5,092,139
Share option reserve 821,641 128,052 62,446
Retained earnings (8,400,855) (4,733,051) (2,851,265)
Total equity 13,405,960 3,462,884 2,303,588
GROUP STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Share option Retained Total
account reserve earnings
GBP GBP GBP GBP GBP
As restated for the period ended
30 June 2020:
Balance at 1 April 2019 268 5,068,165 - (2,851,265) 2,217,168
Transition adjustments - 23,974 62,446 - 86,420
As restated 268 5,092,139 62,446 (2,851,265) 2,303,588
Period ended 30 June
2020:
Loss and total
comprehensive
income for the period - - - (1,881,786) (1,881,786)
Issue of share capital 53 3,146,009 - - 3,146,062
Costs of share issues - (170,586) - - (170,586)
Share option expense
in the period - - 65,606 - 65,606
Balance at 30 June 2020 321 8,067,562 128,052 (4,733,051) 3,462,884
Year ended 30 June 2021:
Loss and total
comprehensive
income for the year - - - (3,704,515) (3,704,515)
Issue of share capital 38,461 13,812,062 - - 13,850,523
Costs of share issues - (1,598,831) - - (1,598,831)
Bonus issue 134,548 (134,548) - - -
Warrant expense in the
year - (36,928) 36,928 - -
Share option expense
in the year - - 979,384 - 979,384
Share option exercise 2,893 699,634 (286,012) - 416,515
Share option forfeit - - (36,711) 36,711 -
Balance at 30 June 2021 176,223 20,808,951 821,641 (8,400,855) 13,405,960
GROUP STATEMENT OF CASH FLOWS
2021 2020
GBP GBP GBP GBP
Cash flows from operating
activities
Loss for the year after tax (3,704,515) (1,881,786)
Adjustments for:
Taxation charged (277,128) (222,271)
Finance costs 245,893 241,740
Investment income (27,576) (16,741)
Amortisation and impairment
of intangible
assets 140,562 197,996
Depreciation and impairment
of property,
plant and equipment 328,537 407,435
Equity settled share based
payment
expense 979,387 65,606
Fair value movement on
derivatives 7,743 -
Decrease in provisions 773 25,326
Movements in working
capital:
Increase in inventories (61,533) (196,217)
Increase in trade and other
receivables (462,456) (183,945)
Increase in trade and other
payables 292,312 264,314
Cash absorbed by operations (2,538,001) (1,298,543)
Interest paid (111,362) (68,280)
Tax refunded 37,128 222,271
Net cash outflow from
operating activities (2,612,235) (1,144,552)
Investing activities
Purchase of intangible assets (712,215) (1,513,256)
Purchase of property, plant
and equipment (252,174) (119,969)
Proceeds of sub-lease - 62,250
Acquisition of investments - (2)
Government grants received 430,155 1,011,013
Interest received 3,952 4,573
Net cash used in investing
activities (530,282) (555,391)
Financing activities
Proceeds from issue of shares
(net
of share issue costs) 12,325,120 2,975,476
Proceeds from borrowings - 100,000
Repayment of borrowings (29,438) (14,721)
Payment of lease liabilities (106,703) (216,771)
Payment of licence
obligations (723,615) (576,328)
Net cash generated from
financing
activities 11,465,364 2,267,656
Net increase in cash and cash
equivalents 8,322,847 567,713
Cash and cash equivalents at
beginning
of year 949,569 381,856
Cash and cash equivalents at
end of
year 9,272,416 949,569
General information
AMTE Power Plc is a public company limited by shares
incorporated in England and Wales. The registered office is Suite
1, 3rd Floor, 11-12 St. James's Square, London, SW1Y 4LB. The
company's principal activities and nature of its operations are
disclosed in the directors' report.
The group consists of AMTE Power Plc and all of its
subsidiaries.
Significant Accounting Policies
Accounting Convention
The financial statements have been prepared in accordance with
international accounting standards (IFRS) in conformity with the
requirements of the Companies Act 2006. These financial statements
for the year ended 30 June 2021 are the first group financial
statements of AMTE Power Plc prepared in accordance with IFRS.
The financial statements are prepared in sterling, which is the
functional currency of the group. Monetary amounts in these
financial statements are rounded to the nearest GBP1.
The financial statements have been prepared prepared under the
historical cost convention, modified to include the revaluation of
certain financial instruments at fair value. The principal
accounting policies adopted are set out below.
Basis of Consolidation
The consolidated group financial statements consist of the
financial statements of the parent company AMTE Power Plc together
with all entities controlled by the parent company (its
subsidiaries) and the group's share of its interests in joint
ventures and associates.
All financial statements are made up to 30 June 2021. Where
necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with
those used by other members of the group.
All intra-group transactions, balances and unrealised gains on
transactions between group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred.
Subsidiaries are consolidated in the group's financial
statements from the date that control commences until the date that
control ceases.
Going Concern
The Group had net assets of GBP13,405,960 as at 30 June 2021 but
is nevertheless currently dependent on its shareholders for
support. In previous years this has been forthcoming from both its
existing and new shareholders.
After making appropriate enquiries, the directors of the Group
have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future.
Thus, the directors continue to adopt the going concern basis of
accounting in preparing the historical financial information.
Turnover
IFRS 8 'Operating Segments' requires operating segments to be
identified on the basis of internal reports of the Group that are
regularly reviewed by the Group's chief operating decision maker,
based on information used to allocate the Group's resources. The
information as presented to internal management is consistent with
the statement of comprehensive income.
It has been determined that there is one operating segment, the
development of battery cells, and accordingly no segmental analysis
is presented on the basis that this would replicate the Income
Statement.
In the periods covered in the financial statements, the Group
operated mainly in the United Kingdom. All non-current assets are
located in the United Kingdom. The Group does not have any goodwill
to allocate to its operating segment.
Year Ended 15 Months
Ended
30 June 30 June
2021 2020
GBP GBP
Turnover analysed by class of business
Commercial contracts 687,287 802,520
Grant income 1,280,061 462,335
1,967,348 1,264,855
Year Ended 15 Months
Ended
30 June 2021 30 June
2020
GBP GBP
Turnover analysed by geographical market
United Kingdom 1,868,347 968,141
Rest of the World 99,001 296,714
1,967,348 1,264,855
During the year two customers each accounted for over 10% of
revenue, relating to commercial contracts, these customers
accounted for GBP304,930 and GBP141,512 (2020: GBP611,023 in
total). All commercial contract revenues have arisen from contracts
with customers, and has been disaggregated to provide revenue
amounts for material categories in accordance with the disclosure
requirements of IFRS 15 'Revenue from Contracts with Customers'.
Although government grant income is not typically accounted for
under IFRS 15, this has been presented within revenue as the
Group's business model anticipates significant revenues from such
grants in its current business lifecycle phase.
The Group deferred income of GBP430,155 (2020: GBP999,059)
against product development costs that were capitalised. Such
income is recognised on the performance model under IAS 20
'Accounting for Government Grants and Disclosures'.
CALCULATION OF ADJUSTED EBITDA
In reporting EBITDA, the Directors use an adjusted EBITDA metric
to better reflect the performance of the business. This metric is
calculated as follows:
Year Ended 15 Months
Ended
30 June 30 June
2021 2020
GBP GBP
Operating Loss (3,763,326) (1,879,058)
Add back:
Equity settled share based payment
expense 979,387 65,606
Amortisation of intangible assets 140,561 197,996
Depreciation of property, plant &
equipment 328,537 407,435
Deduct:
Payment of licence obligations (723,615) (576,328)
Payment of liabilities for property
right-of-use assets (189,237) (239,717)
EBITDA (ADJUSTED) (3,227,693) (2,024,066)
The Directors have opted to include the following cash payments
as they believe that this better reflects a key performance
indicator focused on the operating performance of the Group. The
cash payments are: payments for the licence obligations which is
effectively the annual payment for the use of the licences; and the
payments for the right-of-use property assets reflects the rental
payments made for the use of these assets reflected in the balance
sheet as an asset and liability.
LOSS PER SHARE
Year Ended 15 Months
Ended
30 June 30 June
2021 2020
GBP GBP
Number of shares
Weighted average number of ordinary shares
for diluted earnings per share 29,422,110 23,159,372
In the current and comparative year the Group has incurred
losses and as such has not presented any dilutive shares in
accordance with IAS 33 'Earnings per share'. However, the Group
does have a number of share options and warrants that would dilute
the earnings per share should the Group become profitable.
Earnings (all attributable to equity shareholders of
the company)
Continuing operations
Loss for the period from continued
operations (3,704,515) (1,881,786)
Earnings per share for continuing operations
Basic earnings per share (pence per
share) (12.59) (8.13)
Diluted earnings per share (pence
per share) (12.59) (8.13)
Basic earnings per share
From continuing operations (12.59) (8.13)
All earnings per share are derived from continuing operations.
If the prior year restatements were not recognised, the comparative
basic and diluted earnings per share (pence per share) would be
(9.41).
SHARE CAPITAL
2021 2020 2021 2020
Ordinary share capital Number Number GBP GBP
Authorised, issued and fully paid
Ordinary shares of 0.5p each 35,244,670 64,209 176,223 321
Reconciliation of movements during the year:
Number
At 1 July 2020 64,209
Issue of fully paid shares 7,405,503
Bonus issue 27,196,315
Exercise of share options 578,643
At 30 June 2021 35,244,670
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