TIDMLIB
RNS Number : 2139X
Libertine Holdings PLC
19 December 2023
19 December 2023
Libertine Holdings PLC
("Libertine" the "Company" or the "Group")
Half year results for the six months ended 30 September 2023
Libertine Holdings PLC (LSE AIM: LIB), a developer of Linear
Generator technology, today announces its half year results for the
six months ended 30 September 2023.
Highlights
-- Integration of Libertine's HEXAGEN(TM) hermetic Linear
Generator technology into Hyliion's KARNO(TM) generator ALPHA
prototypes. In May 2023 Hyliion's KARNO(TM) Hypertruck commercial
vehicle demonstrator was exhibited at the ACT Expo in Anaheim,
California . In October 2023 a KARNO(TM) generator using
Libertine's HEXAGEN(TM) technology successfully returned power to
the grid in Ohio.
-- Phase 1 engineering development with Hyliion is complete,
contract has entered a 6-month Option Period for HEXAGEN(TM)
platform technology IP licensing.
-- In August 2023 Libertine completed design, manufacture and
first phase of combustion testing of Libertine's intelliGEN(TM)
performance validation prototype for distributed power generation
and heavy-duty powertrain applications.
-- In September 2023 Ashok Leyland's Linear Generator
collaboration with Libertine was showcased alongside H2-ICE and
Fuel Cell developments at Ashok Leyland's 75th anniversary event in
Chennai.
-- intelliGEN(TM) and HEXAGEN(TM) platform performance and
durability enhancements are on track. These enhancements are
planned to satisfy stage-gate performance requirements for entry
into OEM new product development programmes expected to commence in
2024.
-- Libertine has pre-funded build of a small number of
additional intelliGEN(TM) prototype Linear Generators which are
planned to support OEM new product development programmes.
-- T echnical progress has generated OEM commercial interest in
intelliGEN(TM) and HEXAGEN(TM) technology platforms for the
decarbonisation of heavy-duty powertrain, distributed power
generation and gas compression applications across several
geographic regions.
Outlook
As of 30 September 2023, the Group had cash reserves of GBP0.9m,
which provide the Group, absent any additional revenues, with the
funds required to maintain current operations through to May
2024.
The Company remains committed to developing its intelliGEN(TM)
and HEXAGEN(TM) technology platforms which the Company provides to
its OEM customers for their development of Linear Generator and
Linear Motor products.
The Company is presently engaged in commercial and technical
dialogue under NDA with prospective OEM customers across a number
of different applications and geographic regions.
Sam Cockerill, Chief Executive of Libertine, commented:
"We are pleased to have completed work with Hyliion during the
period which saw exhibition of their KARNO(TM) Hypertruck
commercial vehicle demonstrator at the ACT Expo in Anaheim CA in
May 2023, and has since enabled a KARNO(TM) generator to
successfully return power to the grid in Ohio.
"The HEXAGEN(TM) platform advances that have been demonstrated
on the KARNO generator have led to continued commercial interest in
this platform for gas compression and energy storage applications,
and form the basis of new intellectual property that underpins both
HEXAGEN(TM) and intelliGEN(TM) platforms.
"We are on track with the implementation of further performance
and durability enhancements to our intelliGEN(TM) and HEXAGEN(TM)
platforms. These enhancements are planned to satisfy entry
requirements for multiple OEM new product development programmes
expected to commence in 2024.
"Commercial interest in our intelliGEN(TM) and HEXAGEN(TM)
technology platforms remains strong, supported by the technical
progress demonstrated in 2023. Prospective customer applications
span distributed power generation, heavy-duty vehicles, and gas
compression. We are making good progress with a number of OEM and
end product customers in the US, Europe, Middle East and India who
we anticipate will incorporate our platform technology into their
product development and demonstration programmes."
Half year results presentation
Sam Cockerill, Chief Executive Officer, and Gareth Hague, Chief
Financial Officer, will be hosting an Investor Meet Company
presentation at 11:00am (UK time) on 19 December 2023. Please sign
up via the following link:
https://www.investormeetcompany.com/libertine-holdings-plc/register-investor
.
For more information, please visit www.libertine.co.uk or
contact:
Libertine Holdings PLC via Tavistock
Sam Cockerill, Chief Executive Officer
Gareth Hague, Chief Financial Officer
Panmure Gordon (NOMAD and Broker) +44 20 7886 2500
John Prior
Dougie McLeod
Hugh Rich (Corporate Broking)
Tavistock (Public Relations and Investor
Relations) +44 207 920 3150
Rebecca Hislaire libertine @tavistock.co.uk
Charles Baister
About Libertine
Founded in 2009, Libertine provides technology platform
solutions for Original Equipment Manufacturers ("OEMs"), enabling
efficient and clean power generation from renewable fuels, and more
effective energy storage devices and gas compressor systems.
Libertine was admitted to trading on the AIM market of the London
Stock Exchange in December 2021.
Libertine has created two technology platforms, each using the
same core technology elements, which the Company provides to its
OEM customers for their development of Linear Generator and Linear
Motor products:
- The intelliGEN(TM) platform enables the creation of clean,
highly efficient and fuel-flexible Linear Generator products
including:
-- Heavy-duty hybrid powertrains of trucks, buses, tractors,
construction and mining equipment;
-- Medium and light-duty hybrid powertrains of commercial
vehicles operating over longer distances;
-- A proportion of the passenger automotive market where vehicle
use and recharging constraints are a barrier to battery
electrification; and
-- A wide range of off-grid, portable power and distributed power generation applications.
- The HEXAGEN(TM) platform enables more effective energy
storage, thermal power generation, waste heat recovery and gas
compression products including:
-- Stirling Engine power generators and thermal energy storage systems;
-- Linear motor reciprocating compressor (LMRC) systems for hydrogen refuelling stations; and
-- Organic Rankine Cycle waste heat recovery systems.
These two platforms are a result of over a decade of development
and performance validation of Libertine's proprietary core
technology elements including its linear electrical machines,
controls and developer tools.
The potential market for Linear Generator products goes well
beyond the distributed power generation applications where Linear
Generators are already in commercial use today, complementing
intermittent renewable power with clean, on-demand power
generation. Linear Generators also have the potential to complement
battery electrification in hybrid powertrains, providing on-board
power generation to address the practical and economic barriers to
rapid adoption of clean electric propulsion using battery electric
powertrain technology alone.
Working with OEMs from an early stage in the development cycle
ensures Libertine's technology is effectively integrated into OEM
products, maximising the performance and economic benefits provided
by Libertine's platform technology. Libertine has developed a
portfolio of over 30 granted patents in addition to a significant
body of technical know-how generated since the Company's formation.
The Company's senior management team and board includes executives
with decades of deep technical experience in the automotive and
energy industries.
Chief Executive's Statement
I am pleased to report on our strategic progress and business
performance for the 6 months ended 30 September 2023.
During the period, Libertine has supported the adoption and use
of our Linear Generator technology platforms by our OEM customers
and strategic development partners, in line with our strategy.
Our mission is to bring forward the widespread use of Linear
Generators in transport and distributed power applications.
Business Overview
Manufacturers of heavy-duty commercial vehicles have pledged to
go "fossil free" by 2040 through a combination of powertrain
technologies that include battery electrification, green hydrogen,
renewable biofuels and synthetic low carbon fuels. Achieving this
will require the rapid deployment of fossil fuel-free capable
trucks by 2030; however, this can only happen if there is large
demand from transport operators based on the use case economics for
such trucks.
Battery electrification is not a universal solution to the
problem of decarbonising transport. A number of significant
economic barriers prevent trucks powered solely by battery electric
powertrain technology from achieving decarbonisation of the heavy
goods transport industry, including:
-- reduced payload, due to the size and weight of batteries required;
-- unproductive miles and hours, to charge the batteries;
-- few charging points, creating uncertainty for truck operators
and the need for off-route miles; and
-- higher vehicle costs, predominantly due to the battery costs.
Libertine has developed the intelliGEN(TM) and HEXAGEN(TM)
Linear Generator technology platforms which have the potential to
complement battery electrification within hybrid powertrains,
addressing the significant economic barriers set out above.
Linear Generators are already in commercial use in distributed
power generation applications, displacing conventional generators
due to their favourable operating economics compared to today's
less efficient internal combustion engine generator technology.
Libertine's technology will help meet the global need for clean,
reliable and affordable transport and electrical power wherever it
is needed, transforming the lives of millions of people.
Strategic Priorities
Libertine's proposed technology licensing model supports
stage-gated development by OEM partners seeking to address key
performance, technical, economic and route-to-market risks and to
develop their own proprietary combustion systems and product
integration IP. In the near term, in addition to grants, Libertine
expects to continue to generate a high proportion of its revenue in
engineering fees for developing and providing linear e-machine
hardware, controls and developer tools to power generator OEM
customers.
Over time, as client development programmes result in the launch
of commercial Linear Generator products, Libertine expects to
increase the proportion of revenue generated from advance licence
fees and from royalties charged per unit on every Linear Generator
product or system that uses Libertine's technology.
During the period, Libertine has completed its work on the
integration of its HEXAGEN(TM) electrical linear generator
technology with Hyliion. We were delighted to support the
demonstration of Hyliion's KARNO(TM) Hypertruck at the ACT Expo in
Anaheim, California in May 2023.
Libertine has also advanced its intelliGEN(TM) linear generator
platform through the completion of a grant funded program with
BEIS. Having completed the design and manufacture of a performance
validation prototype Linear Generator, "LGN120", we have completed
a first phase of combustion testing at MAHLE Powertrain. In advance
of further combustion testing we are taking the opportunity to
implement a number of performance and durability enhancements,
which are planned to satisfy entry requirements for OEM product
development programmes. We expect to demonstrate these enhancements
in Q1 2024.
Commercial interest in Libertine's technology platform within
powertrain, stationary power and gas compression applications
remains strong, and we expect to support the use of our technology
within further OEM product development programmes.
Market Overview
The addressable market for Linear Generators is significant,
including over twelve million heavy duty and light duty commercial
vehicles, and more than one million distributed power generator
sets for energy storage, off-grid and waste-to-energy applications.
Libertine's technology platform is scalable across multiple market
segments and geographies, covering applications from 1-250
kilowatts of electrical power.
During the period, work has focused on the completion of
performance validation prototypes for both the intelliGEN(TM) and
HEXAGEN(TM) platforms. We have also progressed commercial interest
across other application sectors, including distributed power and
hydrogen compression.
Technical Progress
Investment in core technology development has increased in-line
with IPO plans. During the period we are pleased to have delivered
a number of performance validation prototypes to customer / partner
testing sites in the UK and US and have provided on-site support to
these testing programmes. We have achieved a number of technical
milestones, including progressions across durability, efficiency
and power output metrics in line with our technology roadmap
expectations.
Core technical development in FY2023/24 is focused on specific
changes required to the intelliGEN(TM) and HEXAGEN(TM) platforms to
improve durability and operations across a wider range of
compression ratios for fuel flexibility, cold start, transient and
lean operation.
Financial Performance
During the period, Libertine has continued to support the
integration of its HEXAGEN(TM) technology platform with Hyliion
Holdings Corp. (NYSE: HYLN, "Hyliion") and develop its
intelliGEN(TM) technology platform through grant funded operations
with the Department for Business, Energy and Industrial Strategy
("BEIS"), alongside a number of other commercial projects.
The Group delivered GBP121k of commercial revenue and GBP36k of
grant income in the period through the finalisation of programmes
with Hyliion and BEIS.
As of 30 September 2023, the Group had cash reserves of
GBP0.9m.
Outlook
We are pleased to have completed work on performance validation
prototypes for both the intelliGEN(TM) and HEXAGEN(TM) platforms.
We are currently working on performance and durability
enhancements, which we expect to meet the requirements of OEM
product development programmes expected to commence in 2024.
Commercial interest in our intelliGEN(TM) and HEXAGEN(TM)
technology platforms remains strong, supported by the technical
progress demonstrated in 2023. Prospective customer applications
span distributed power generation, heavy-duty vehicles, and gas
compression. We are making good progress with a number of OEM and
end product customers in the US, Europe, Middle East and India who
we anticipate will incorporate our platform technology into their
product development and demonstration programmes.
Management remains focused on partnering with OEMs to support
the funding requirements for bringing the technology to market.
Financial Review
During the period we have continued to deliver on commercial and
grant funded programmes for the development of the HEXAGEN(TM) and
intelliGEN(TM) platforms. These programmes have resulted in the
demonstration of our HEXAGEN(TM) technology within Hyliion's
KARNO(TM) Hypertruck, and the completion of a first phase of
combustion testing of Libertine intelliGEN(TM) prototype
hardware.
We remain committed to delivering on our current customer
programmes and supporting the integration of our technology into
the products of our OEM customers.
Financial Performance
HY2023/24 HY2022/23
GBPm GBPm
--------------------- ---------- ----------
Commercial revenue 0.1 0.7
Grant income 0.1 0.2
---------- ----------
Total income 0.2 0.9
Cost of sales (0.1) (0.8)
Admin expenses (1.3) (1.8)
Adjusted EBITDA (1.2) (1.7)
Depreciation (0.0) (0.1)
Net interest charge (0.0) -
---------- ----------
Loss before tax (1.2) (1.8)
Taxation 0.2 0.1
---------- ----------
Loss after tax (1.0) (1.7)
---------- ----------
Revenues and Grant Income
Commercial revenues in the period were generated from
engineering services on a number of customer programmes. The
majority of the commercial revenue came from engineering
development with Hyliion.
Grant income in the period relates to the finalisation of a
program BEIS to support the further development of the
intelliGEN(TM) platform to demonstrate hydrogen and compressed
natural gas ("CNG") fuel flexibility.
Expenses
Cost of sales and administrative expenses reduced in the period
in-line with incomes, and as a result of a lower run rate for core
technical development as work was focused on specific performance
and durability enhancements on the intelliGEN(TM) and HEXAGEN(TM)
platforms.
Adjusted EBITDA
The Adjusted EBITDA loss of GBP1.2m (HY2022/23: GBP1.7m)
decreased on the prior period as a result of the planned reduction
in core technical development.
Adjusted EBITDA is calculated after adding back operating costs
of an exceptional nature, which are not considered to form part of
the underlying performance. The reconciliation of adjusted EBITDA
to the loss from operations for the financial period is shown in
note 7.
Taxation
The tax credit for the current and prior period relates to
research and development tax credits. No corporation tax charge has
been incurred in the period as a result of the losses before
taxation.
Cash
The Group end of period cash balance for HY2023/24 was GBP0.9m
(HY2022/23: GBP4.8m, FY2022/23: GBP2.5m). In line with our plans
set out at IPO, we have continued to invest in the development of
our core technology platform and in the scale up of our operational
teams to support OEM customers.
Given the supply chain challenges experienced in the prior year,
we have built inventories to support expected sales of
intelliGEN(TM) prototype hardware during FY2023/24. Inventories
have increased by GBP0.2m since the year end.
Accounting Policies
The consolidated financial information has been prepared
consistently in accordance with UK-adopted International Accounting
Standards.
Going Concern
The interim statement has been prepared on a going concern
basis.
The Directors have undertaken a comprehensive assessment to
consider the Group's ability to trade as a going concern for a
period of twelve months from the date of approving the interim
statement. As of 30 September 2023, the Group had cash reserves of
GBP0.9m, in addition to outstanding debtors of GBP0.2m, inventories
of GBP0.8m, corporation tax receivables due of GBP0.5m and current
liabilities of GBP0.4m.
The Directors have robustly tested the going concern assumption
in preparing the interim statement, taking into account the Group's
liquidity position as at 30 September 2023 and a number of severe
but plausible downside scenarios, which collectively would be
considered remote. Absent of any additional revenues, the Group has
funds required to maintain current operations, through to May 2024.
The Group expects to secure new revenues and incomes within the
next 12 months which are more than sufficient to support approving
the interim statement as a going concern. The Directors acknowledge
that uncertainty may arise with respect to both the timing and
quantum of additional revenues and income. This indicates a
material uncertainty which may cast significant doubt upon the
Group's ability to continue as a going concern.
The Directors do however remain confident in the business model
and believe the Group could be managed in a way to allow it to meet
its ongoing commitments and obligations through mitigating actions
including cost saving measures and securing alternative sources of
funding should this be required. On that basis, the Directors
consider it is appropriate to prepare the interim statement as a
going concern and have not included the adjustments that would
result if the Group was unable to continue as a going concern.
Interim Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2023
Six months Six months
ended 30 ended 30
September September
2023 2022
Note GBP'000 GBP'000
Revenue 4 121 648
Cost of sales (17) (617)
Gross profit 104 31
Other operating income 5 36 220
Administrative expenses (1,353) (2,010)
Loss from operations (1,213) (1,759)
Finance expense 8 (5) -
Loss before taxation (1,218) (1,759)
Taxation 9 203 75
Loss for the period and total comprehensive
loss for the period attributable to
the owners of the company (1,015) (1,684)
---------- ----------
Basic and diluted loss per share (pence) 10 (0.7p) (1.2p)
The above results were derived from continuing operations.
There are no items of comprehensive income other than the loss
for the period and therefore, no statement of other comprehensive
income is presented.
The accompanying notes form part of the financial
statements.
Consolidated Statement of Financial Position
as at 30 September 2023
Unaudited Audited
Unaudited As at As at
As at 30 September 30 September 31 March
2023 2022 2023
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 161 97 144
Right-of-use assets 171 3 192
332 100 336
------------------- ------------- ---------
Current assets
Inventory 756 272 518
Trade and other receivables 11 624 1,425 1,285
Corporation tax receivable 534 278 478
Cash and cash equivalents 932 4,813 2,478
2,846 6,788 4,759
------------------- ------------- ---------
Total assets 3,178 6,888 5,095
------------------- ------------- ---------
EQUITY AND LIABILITIES
Capital and reserves
Issued capital 13 139 139 139
Share premium account 14 10,421 10,421 10,421
Merger reserve 3,401 3,401 3,401
Share option reserve 517 351 450
Accumulated losses (11,877) (8,840) (10,862)
------------------- ------------- ---------
Total equity 2,601 5,472 3,549
------------------- ------------- ---------
LIABILITIES
Non-current liabilities
Lease liability, non-current 165 - 154
------------------- ------------- ---------
165 - 154
------------------- ------------- ---------
Current liabilities
Trade and other payables 12 355 1,104 1,203
Contract liability 38 312 153
Lease liability, current 19 - 36
------------------- ------------- ---------
412 1,416 1,392
------------------- ------------- ---------
Total liabilities 577 1,416 1,546
------------------- ------------- ---------
Total Equity and Liabilities 3,178 6,888 5,095
------------------- ------------- ---------
The accompanying notes form part of the financial
statements.
Interim Consolidated Statement of Changes in Equity
for the six months ended 30 September 2023
Share Share
Issued premium Merger option Accumulated
capital account reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1
April 2022 139 10,414 3,401 351 (7,156) 7,149
Total comprehensive
loss for the period - - - - (1,684) (1,684)
Issue of shares - 7 - - - 7
As at 30 September
2022 (Unaudited) 139 10,421 3,401 351 (8,840) 5,472
-------- -------- -------- -------- ----------- -------
Total comprehensive
loss for the period - - - - (2,022) (2,022)
Share option charge - - - 99 - 99
As at 31 March
2023 139 10,421 3,401 450 (10,862) 3,549
-------- -------- -------- -------- ----------- -------
Total comprehensive
loss for the period - - - - (1,015) (1,015)
Share option charge - - - 67 - 67
As at 30 September
2023
(Unaudited) 139 10,421 3,401 517 (11,877) 2,601
-------- -------- -------- -------- ----------- -------
Issued capital and share premium account reflect the shares
issued by the Company to date.
The merger reserve represents a reserve arising on
consolidation, as a result of accounting for the share for share
exchange in December 2021.
Share option reserve relates to the cumulative charges for share
options.
Accumulated losses reflects the cumulative comprehensive losses
of the Company.
Consolidated Statement of Cash Flows
for the six months ended 30 September 2023
Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
Cash flows from operating activities
Loss after tax for the period (1,015) (1,684)
Adjustments for:
Taxation (203) (75)
Depreciation of property, plant &
equipment 26 14
Depreciation of right-of-use asset 21 16
Share option charge 67 -
Finance expense 5 -
Tax credits received 146 -
Changes in working capital:
Increase in inventories (238) (166)
Decrease / (increase) in trade and other
receivables 661 (308)
(Decrease) / increase in trade and other
payables (963) 380
---------- ----------
Net cash used in operating activities (1,493) (1,823)
---------- ----------
Cash flows from investing activities
Purchase of property, plant, and equipment (44) (56)
Proceeds from sale of assets 2 -
Net cash used in investing activities (42) (56)
---------- ----------
Cash flows from financing activities
Payment of lease liabilities (6) (12)
Share issue (net of issue costs) - 7
Finance expense (5) -
Net cash used in financing activities (11) (5)
---------- ----------
Net change in cash and cash equivalents (1,546) (1,884)
Cash and cash equivalents at the beginning
of the period 2,478 6,697
----------
Cash and cash equivalents at the end
of the period 932 4,813
---------- ----------
Notes
1. General information and basis of preparation
Libertine Holdings PLC ("Libertine" or the "Company") is a
company incorporated and domiciled in the United Kingdom
(registered number 13724783). The Company was incorporated on 5
November 2021 and is a public company limited by shares registered
in England and Wales. The address of the Company's registered
office is 1 Coborn Avenue, Tinsley, Sheffield, S9 1DA.
The principal activity of the Company is that of investment
holding. The principal activity of the Group is the development of
linear electrical machines.
The Interim Statement should be read in conjunction with the
Company's last annual consolidated financial statements as at and
for the year ended 31 March 2023.
The Interim Financial Statement has been prepared in accordance
with UK adopted international accounting standards and UK Companies
Act 2006.
The financial information for the period ended 30 September 2023
and the period ended 30 September 2022 is unaudited. The
comparative financial information for the period ended 31 March
2023 in this interim report does not constitute statutory accounts
for that period under 435 of the UK Companies Act 2006.
2. Going Concern
The Interim Statement has been prepared on a going concern
basis.
The Directors have undertaken a comprehensive assessment to
consider the Group's ability to trade as a going concern for a
period of twelve months from the date of approving the interim
statement. As of 30 September 2023, the Group had cash reserves of
GBP0.9m, in addition to outstanding debtors of GBP0.2m, inventories
of GBP0.8m, corporation tax receivables due of GBP0.5m and current
liabilities of GBP0.4m.
The Directors have robustly tested the going concern assumption
in preparing the interim statement, taking into account the Group's
liquidity position as at 30 September 2023 and a number of severe
but plausible downside scenarios, which collectively would be
considered remote. Absent of any additional revenues, the Group has
funds required to maintain current operations, through to May 2024.
The Group expects to secure new revenues and incomes within the
next 12 months which are more than sufficient to support approving
the interim statement as a going concern. The Directors acknowledge
that uncertainty may arise with respect to both the timing and
quantum of additional revenues and income. This indicates a
material uncertainty which may cast significant doubt upon the
Group's ability to continue as a going concern.
The Directors do however remain confident in the business model
and believe the Group could be managed in a way to allow it to meet
its ongoing commitments and obligations through mitigating actions
including cost saving measures and securing alternative sources of
funding should this be required. On that basis, the Directors
consider it is appropriate to prepare the interim statement as a
going concern and have not included the adjustments that would
result if the Group was unable to continue as a going concern.
3. Accounting policies
The principal accounting policies adopted in preparation of the
Interim Statement of the Group have been applied consistently to
all periods presented.
4. Revenue
Revenue arises from:
Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
North America 121 642
EMEA - 6
121 648
----------- -----------
In the period ended 30 September 2023, one customer generated
more than 10% of total revenue (30 September 2022: one). Revenue
attributable to the customer was GBP115,000 (30 September 2022:
GBP642,000).
Revenue by category:
Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
Engineering Services 121 648
121 648
----------- -----------
5. Other Operating Income
Other operating income by category:
Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
Grant income 36 220
36 220
----------- -----------
Government Grants
Grant income relates to government grant schemes aimed at
supporting industrial research and development to bring new
products and technologies to market and support the long-term
sustainable growth of businesses. The Group enters into grant
schemes to provide funding towards the further development of its
technology platform.
6. Operating segments
IFRS 8 requires that operating segments be identified on the
basis of internal reporting and decision-making. The Company is
operated as one business by its executive team, with key decisions
being taken by the same leaders irrespective of the geography where
work for clients is carried out. Management therefore consider that
the Company has one operating segment. As such, no additional
disclosure has been presented under IFRS 8.
7. Reconciliation of GAAP to non-GAAP measures
The Group uses several 'non-GAAP' figures as comparable key
performance measures, as they exclude the impact of items that are
non-cash items and also items that are not considered part of
ongoing underlying trade. The Group's 'non-GAAP' measures are not
defined performance measures in IFRS. The Group's definition of the
reporting measures may not be comparable with similar titled
performance measures in other entities.
Adjusted earnings before interest, tax, depreciation, and
amortisation ("EBITDA") is calculated as follows:
Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
Loss from operations (1,213) (1,759)
Add back:
Depreciation of property, plant
and equipment 26 14
Deprecation of lease asset 21 16
----------- -----------
EBITDA and Adjusted EBITDA (1,166) (1,729)
----------- -----------
There are no differences between both the loss from operations
and loss after tax, and the equivalent adjusted measures.
8. Finance expense
Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
Interest payable:
Interest on lease liability (5) -
----------- -----------
(5) -
----------- -----------
9. Taxation
Income taxes recognised in profit or loss Six months Six months
ended 30 ended 30
September September
2023 2022
GBP'000 GBP'000
Current tax
UK tax credit for the period 203 75
Deferred tax - -
----------- -----------
Total income tax credit recognised 203 75
----------- -----------
The Group was not liable for corporation tax during the past two
periods due to taxable losses being sustained in each of the
periods reported. The tax credit for the current period relates to
research and development tax credits.
The Group has not recognised a deferred tax asset in respect of
trading losses incurred to date as the business is developing its
products. When there is clear visibility of profits, the Group will
recognise the deferred tax assets to the extent that sufficient
taxable income will be available.
10. Loss per share
Six months Six months
ended 30 ended 30
September September
2023 2022
Basic loss per share
Loss attributable to equity shareholders
of the parent (GBP'000) (1,015) (1,684)
Weighted average number of shares in
issue 139,219,010 139,146,879
Basic loss per share (pence) (0.7p) (1.2p)
------------ ------------
Basic loss per share is based on the weighted average number of
ordinary shares in issue during the period. Diluted loss per share
would assume conversion of all potentially dilutive ordinary shares
arising from the share schemes detailed in note 15. Due to the
losses in both periods there are no potentially dilutive ordinary
shares, and therefore there is no difference between the basic and
diluted loss per share.
Adjusted loss per share
The calculation of adjusted loss per share is based on the
adjusted loss after tax, as per note 7. Adjusted earnings per share
figures are given to exclude the effects of exceptional items and
pre-reorganisation finance costs, all net of taxation, and are
considered to show the underlying performance of the Group.
Six months Six months
ended 30 ended 30
September September
2023 2022
Adjusted loss per share
Adjusted loss after tax (note 7) (GBP'000) (1,015) (1,684)
Weighted average number of shares in
issue 139,219,010 139,146,879
Adjusted loss per share (pence) (0.7p) (1.2p)
------------ ------------
11. Trade and other receivables
As at 30 As at 30
September September
2023 2022
GBP'000 GBP'000
Current
Trade receivables - gross 225 47
Provision for impairment of trade - -
receivables
----------- -----------
225 47
Other Debtors 30 16
VAT Debtor 93 196
Prepayments 170 501
Accrued income 106 665
----------- -----------
624 1,425
----------- -----------
The Group had past due trade receivables of GBP88,000 as at 30
September 2023 (30 September 2022: GBPnil).
Trade receivables are non-interest bearing and receivable under
normal commercial terms. The Directors consider that the carrying
amount of trade and other receivables approximates to their fair
value and that no impairment is required at the reporting dates.
Trade and other receivables represent financial assets and are
assessed for impairment on an expected credit loss model. There is
no expected credit loss provision for impairment at 30 September
2023 (30 September 2022: GBPnil).
The impairment loss recognised in the income statement for the
period in respect of expected credit losses was GBPnil (HY2022/23:
GBPnil).
12. Trade and other payables
As at 30 As at 30
September September
2023 2022
GBP'000 GBP'000
Trade payables 92 312
Tax and social security payable 32 48
Other payables - 23
Accruals 231 721
355 1,104
----------- -----------
The fair values of the Company's trade and other payables are
considered to equate to their carrying amounts.
13. Share Capital
Ordinary Shares (GBP0.001)
Number GBP
At 30 September 2022 139,219,010 139,219
At 31 March 2023 139,219,010 139,219
At 30 September 2023 139,219,010 139,219
----------------- ----------
14. Share Premium Account
GBP'000
At 1 April 2022 10,414
Issued 7
--------
At 30 September 2022 10,421
--------
At 31 March 2023 10,421
--------
At 30 September 2023 10,421
--------
Share premium is the amount subscribed for share capital in
excess of nominal value.
15. Share-based payments
Since 2017, before the incorporation of Libertine Holdings PLC,
options have been granted by Libertine FPE Limited to Directors,
employees and suppliers to purchase Ordinary Shares. Libertine FPE
Limited has issued both EMI and unapproved share options. The
options were due to vest over a period of up to ten years from
grant date and were exercisable in the event of a listing.
In February 2023, Libertine Holdings PLC implemented a new Long
Term Incentive Plan ("LTIP") for all employees. The initial number
of options issued to all employees of 7,182,314 are subject to the
achievement of performance conditions in respect of the three
financial years to 31 March 2025. Performance conditions are
aligned to shareholder value creation and focus on key financial
and operational metrics, consistent with the Group's investment
case. The number of options achieved under the scheme will be
determined by the Remuneration Committee at the end of each
financial year, and a maximum of one third of the allocation can be
achieved each year. The scheme is subject to both good leaver / bad
leaver provisions and malus / clawback provisions. A one-year
retention period for 50% of vesting options applies at the vesting
date.
The LTIP was issued as an EMI scheme. The EMI scheme is open to
all qualifying employees who are an employee within the Group
working 25 hours per week, or if less, at least 75% of their
working time.
Details of the option plans are as follows:
As at 30 As at 30
September September
2023 2022
Outstanding at beginning of period 11,846,037 6,908,120
Forfeited (915,989) -
Exercised - (400,000)
Outstanding at end of period 10,930,048 6,508,120
----------- -----------
The weighted average exercise price on outstanding options at 30
September 2023 is GBP0.01 (30 September 2022: GBP0.02).
The expected volatility is based on the historical volatility
(based on the share price) of comparator companies with publicly
available share prices. The risk-free interest rate is based on the
average return on ten-year UK gilts. Assumed retention of the
options was 100%.
The fair value of each option granted was estimated on the grant
date using the Black-Scholes option-pricing model with the
following assumptions:
LTIP Pre-IPO Pre-IPO
Scheme EMI Scheme Unapproved
Scheme
Fair values at grant dates (per GBP0.18 GBP0.28 - GBP0.28
share) GBP0.55 - GBP0.46
Share price at grant dates GBP0.195 GBP0.47 - GBP0.47
GBP0.64 - GBP0.64
Exercise price GBP0.001 GBP0.02 GBP0.02
Expected volatility 67% 70% 70%
Option life (expected weighted 3 years 1 - 10 years 0 - 2.8
average life) years
Expected dividend 0% 0% 0%
Risk-free interest rate (based
on government bonds) 1.61% 1.12% 1.12%
--------- ------------- ------------
The total share option charge in the period was GBP67,000
(HY2022/23: GBPnil).
16. Events after the balance sheet date
No matters have arisen since the balance sheet date.
-ends-
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END
IR DVLFFXLLEFBV
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December 19, 2023 02:00 ET (07:00 GMT)
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