21 September 2016
PowerHouse Energy Group
plc
(“PowerHouse” or the
“Company”)
Interim results
for the six months ended 30 June
2016
Chairman’s Statement
PowerHouse (AIM: PHE), the company focussed on ultra high
gasification waste to energy systems, announces its unaudited
interim results for the six months to 30
June 2016.
H1 2016 Highlights
Operational
· Period focussed on G3-UHt Ultra High
Gasification waste to energy system (“G3 System”) testing
programme
· Signed commercial cooperation
agreement with PowerHouse Energy Americas
· Settlement agreed with RenewMe
· Clive
Carver appointed as Non-Executive Director
Financial
· Hillgrove Investments Pty Limited
convertible loan note increased by AUD 176,000 and facility
repayment extended to at least 30 June
2017
· Equity fundraising of £575,000 to
support completion of testing and commercial roll out
Post-period Highlights
Operational
· The Company announced completion of
its G3 testing programme and commencement of commercialisation
phase
· Key personnel hired to support the
Company’s commercial roll-out
· Early discussions with a number of
potential clients have commenced
Financial
· Current cash balance is £450,000
For more information, contact:
PowerHouse Energy Group
plc
Keith Allaun, Executive Chairman |
Tel: +44 (0) 203 368 6399 |
WH Ireland Limited
(Nominated Adviser)
James Joyce / James Bavister |
Tel: +44 (0) 207 220 1666 |
Vicarage Capital
Limited
Jeremy Woodgate |
Tel: +44 (0) 203 651
2910 |
IFC Advisory
Tim Metcalfe / Graham Herring / Heather Armstrong / Miles
Nolan |
Tel: +44 (0) 203 053
8671 |
|
|
About PowerHouse
PowerHouse is the holding company of the G3-UHt System Ultra
High Gasification waste to energy systems.
The Company's technologies enable energy recovery from municipal
waste streams that would otherwise be directed to landfills and
incinerators; or from renewable and alternative fuels such as
biomass, tyres, and plastics to create syngas for power generation,
high-quality hydrogen, or potentially reformed into liquid fuels
for transportation. These waste to energy systems aim to
provide the “best solution” to the on-site energy market.
This announcement contains inside information for the purposes
of the Market Abuse Regulation.
PowerHouse Energy Group Plc is quoted on the London Stock
Exchange's AIM Market. The Company is incorporated in the
United Kingdom.
For more information see www.powerhouseenenergy.net
Interim Results for the six months to
30 June 2016
Chairman’s Statement
Introduction
The Company announced on 6 September
2016 the successful completion of its G3 System testing
programme, which marked a significant milestone for the
Company.
Our team has worked diligently over the past 18 months to build
a gasification system from first principals; one that stands up to
the rigours of real-world operation and can be easily and modularly
deployed.
In achieving robust, commercial grade, environmentally friendly,
ultra-high temperature gasification, the Company is now in a
position to progress commercial discussions with a range of
potential clients.
The initial G3-UHt unit is a nominal 1-3 tonne per day (“TPD”)
system. Scaling it up is a linear step function and theoretical
reactor expansion has been engineered, modelled, and designed to
the 100 TPD level.
Our Market
The waste-to-energy landscape continues to be an evolving and
growing market. According to a recent report by Global
Market Insights, it is expected that the waste-to-energy market
will grow from US$20.6 billion in
2015 to over US$35.5 billion by
2024.
Demand in the market for alternatives to incineration and
landfill is already increasing significantly. Landfill taxes
are at an all time high and are expected to continue to grow,
making alternatives like the PowerHouse G3 System very
attractive.
Gasification
The advantages of gasification are multifold. In addition
to a reduced carbon dioxide footprint compared to incineration,
ultra high temperature gasification results in no leachable residue
or ash, a significant problem faced by pyrolysis and lower
temperature combustion-based systems. Low temperature
alternatives produce significant levels of highly toxic and
potentially carcinogenic cyclic molecules. Those toxins are
imbued in the residues and ashes of lower temperature systems and
require that the ash and residue be land-filled for hygiene and
safety. This is not the case with the PowerHouse
approach.
Our G3 System is designed to completely decompose the complex
molecules in the waste-stream, capture the vast majority of the
calorific value therein, detoxify the residue, and allow us to
capture and recycle components of the waste-stream like sulphur,
zinc, or other minerals or metals.
Specialised waste markets represent very large, and potentially
very lucrative, opportunities for the use of the G3 System. We
believe our ability to deal with medical, chemical, biological, and
pharmaceutical waste is nearly unparalleled.
Our Technology
PowerHouse’s proprietary gasification technology, the G3 System,
was initially designed with expansion in mind. Effectively
interlocking and leveraging both front-end and back-end balance of
plant components, the latest designs of the G3-UHt unit with 4
integrated reactors (“G3 Unit”) can feed 400 TPD in a single
operational line driving a turbine electrical generator. This
represents an 8-fold increase over previous technologies that
PowerHouse had considered.
With the advent of significant advances in material science, our
heating design is substantially more efficient- improving the
thermal efficacy of the system as a whole. The specially formulated
and manufactured reactor chambers are immune to the corrosive
threats previous technologies faced, thus increasing the lifespan
of a reactor vessel.
The simplification of the control systems and the understanding
of total system operation, has led to a significant reduction in
manufacturing expense, increased ease of operation, and the
elimination of potential points of failure for the system as a
whole.
During our continual testing and improvement of the G3 Unit, the
engineering team was able to identify several areas of readily
protectable intellectual property related to the system and the
process by which we operate that we will explore protecting through
the patent process as appropriate.
PowerHouse continues to develop multiple sales channels and
commercial opportunities both independently and in conjunction with
a variety of world-wide partners. The design of the larger
modular units positions the company to compete for municipal
infrastructure business.
The modular G3 Units, with smaller footprints than other
commercial technologies, remain ideally suited for local, or
neighbourhood, transfer stations, and are appropriately sized for
integration into the community and the expansion of the distributed
grid.
Purpose-built G3 Units are being designed exclusively for the
economical elimination of highly toxic waste in focused arenas like
pharmaceutical manufacturing, chemical production, or other
industrial applications.
Auto Shredder Residue (“ASR”) is another niche market that is
extremely interesting due to the cost of eliminating the
non-recyclable components of automobile dismantling. Our
ability to gasify the non-recyclable organic components of the ASR
allows us to convert those organics into synthesis gas and fuel
electrical generation for the operation of the dismantling
operations, and send the excess electricity back to the grid.
Our system’s complete demolecularisation capabilities allow us
to manage expensive toxic waste-streams and to capture the energy
value while completely detoxifying the waste. Any resultant
residue is completely non-toxic, non-leachable, and requires no
specialised disposal. It has the consistency of talc.
Operations
PowerHouse has established an engineering, design, testing, and
business development centre in Brisbane,
Australia with a view to serving the needs of clients
throughout Australian and the south-east Asian market.
Board and Advisor Changes
In May 2016 Clive Carver joined
the Board of PowerHouse as a non-executive Director. He sits
on the board of a number of AIM quoted companies and his experience
of the London financial markets
should be of significant value to the Company as we progress our
commercial efforts.
WH Ireland were appointed as Nominated Advisor to the Company in
April 2016.
Funding
Hillgrove Investments Pty Limited, (“Hillgrove”) has continued
its support of the Company through the provision of capital and
personnel for the design, development, engineering, construction,
and testing of the G3 System in Brisbane,
Australia. The Convertible Loan Note, signed in 2012,
between the Company and Hillgrove has been increased by
approximately AUD176,000. As previously announced, the repayment
dates for all loans and debt due to Hillgrove have been extended
to, at the earliest, 12 months after the publication of the
Company’s Financial Statements for the year ended 31 December 2015 being 30
June 2017.
Additionally, the Company raised £575,000 via three equity
fundings during the period under review.
As at 20 September 2016 the
Company has £450,00 in cash, which the Board believes will provide
adequate funding to commence the commercialisation of the
G3-UHt technology and wider ongoing research.
Current Trading
The first 9 months of 2016 have been an active and exciting
time. Testing has been completed on the G3-UHt. The G3 System
is close to being integrated into an easy-to-transport container
for demonstration at multiple sites. We anticipate a minimum
of two containerised units being constructed and shipped to the UK
and the US for demonstration purposes.
The Company is in the early stages of discussions with a number
of potential clients who have been awaiting the results of the
G3-UHt testing. Their operations range in size from 5 TPD to 1,000
TPD and are based in Australia,
the UK, the Middle East,
Thailand and the USA.
In May 2016, the Company announced
the signing of a Commercial Cooperation Agreement with PowerHouse
Energy, Americas (“PHEA”), a wholly independent contract
development company, for the use of the PowerHouse G3 Systems for
waste-to-energy projects. PHEA has committed to exclusively buy,
and use, the G3 Unit, for its waste-to-energy projects, several of
which are currently in development.
Additionally, as previously announced in April 2016, the Company was able to finalise a
deal to issue shares to RenewMe Limited in final settlement of a
liability. As a shareholder, RenewMe has become an active
partner in our success. This has released the Company from any and
all previously disputed issues with RenewMe.
Outlook
We have created, and tested, the G3 System; a technology that we
believe is unparalleled in its capability, its efficiency, its
economy, and its environmental contribution. It is time to begin
selling.
Our commercial focus for the remainder of 2016 is to develop
partner relationships to successfully deploy the G3 System
technology for the elimination of municipal solid waste. We would
be disappointed if construction of the first commercial facilities
utilising the G3 System were not completed within the next 12
months.
Keith Allaun
Chairman
21 September 2016
Statement of Comprehensive Income
|
|
(Unaudited)
Six months |
(Unaudited)
Six months |
(Audited)
Year |
|
|
ended |
ended |
ended |
|
|
30 June |
30 June |
31 December |
|
Note |
2016
US$ |
2015
US$ |
2015
US$ |
|
|
|
|
|
Revenue |
|
- |
- |
- |
Cost of sales |
|
- |
- |
- |
|
|
|
|
|
Gross Loss |
|
- |
- |
- |
|
|
|
|
|
Administrative expenses |
|
(926,057) |
(208,998) |
(602,918) |
Impairment of subsidiary |
|
- |
- |
1,666,552 |
|
|
|
|
|
Operating
loss |
|
(926,057) |
(208,998) |
1,063,634 |
|
|
|
|
|
Finance income |
|
- |
- |
- |
|
|
|
|
|
Finance costs |
|
(350,636) |
(272,571) |
(584,092) |
|
|
|
|
|
Loss before and
after taxation |
|
(1,276,693) |
(451,569) |
479,542 |
|
|
|
|
|
Foreign exchange arising on
consolidation |
|
527,146 |
(2,213) |
224,065 |
|
|
|
|
|
Total comprehensive
expense |
|
(749,547) |
(453,782) |
703,607 |
|
|
|
|
|
Total comprehensive expense
attributable to: |
|
|
|
|
Owners of the Company |
|
(749,545) |
(453,782) |
703,647 |
Non-controlling interests |
|
- |
- |
- |
|
|
|
|
|
Loss per share
(US$) |
3 |
(0.01) |
(0.01) |
<0.01 |
|
|
|
|
|
The notes numbered 1 to 6 are an integral part of the interim
financial information.
Statement of Changes in Equity
|
Shares
and stock
US$ |
Accumulated losses
US$ |
Other
reserves
US$ |
Total
US$ |
|
|
|
|
|
Balance at 1 January
2015 (audited) |
81,815,002 |
(25,806,490) |
(61,431,246) |
(5,422,734) |
Transactions with
equity participants: |
- |
- |
- |
|
- Shares
issued to settle liabilities |
- |
- |
- |
|
- Shares
issued to settle liabilities |
- |
- |
- |
|
Total comprehensive
income: |
|
|
|
|
- Loss after
taxation |
- |
(451,569) |
- |
(451,569) |
- Foreign
exchange arising on consolidation |
- |
- |
(2,213) |
(2,213) |
|
|
|
|
|
Balance at 30 June
2015 (unaudited) |
81,815,002 |
(26,258,059) |
(61,433,459) |
(5,876,516) |
Transactions with
equity participants: |
|
|
|
|
- Share
issue |
308,041 |
|
34,107 |
342,148 |
Total comprehensive
income: |
|
|
|
|
- Profit after
taxation |
|
931,111 |
|
931,111 |
- Foreign
exchange arising on consolidation |
|
|
226,278 |
226,278 |
|
|
|
|
|
Balance at 31
December 2015 (audited) |
82,123,045 |
(25,326,948) |
(61,173,074) |
(4,376,979) |
Transactions with
equity participants: |
|
|
|
|
- Shares issued
to settle liabilities |
606,795 |
|
(399,247) |
207,548 |
- - Shares
issued |
322,754 |
|
110,991 |
433,745 |
- - Share
based payment |
|
|
151,524 |
151,524 |
Total comprehensive
expense: |
|
|
|
|
- Loss after
taxation |
|
(1,276,693) |
|
(1,276,693) |
- Foreign
exchange arising on consolidation |
|
|
527,146 |
527,146 |
|
|
|
|
|
Balance at 30 June
2015 (unaudited) |
83,052,594 |
(26,603,641) |
(60,782,660) |
(4,333,707) |
|
|
|
|
|
The notes numbered 1 to 6 are an integral part of the interim
financial information.
Statement of Financial Position
|
|
(Unaudited)
As at
30 June |
(Unaudited)
As at
30 June |
(Audited)
As at
31 December |
|
Note |
2016
US$ |
2015
US$ |
2015
US$ |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
|
- |
- |
- |
Property, plant and equipment |
|
- |
2,455 |
- |
Investment in associate |
|
- |
- |
- |
Total non-current
assets |
|
- |
2,455 |
- |
|
|
|
|
|
Current Assets |
|
|
|
|
Trade and other receivables |
|
12,024 |
9,232 |
2,146 |
Cash and cash equivalents |
|
472,807 |
4,024 |
259,864 |
Total current
assets |
|
484,831 |
13,256 |
262,010 |
|
|
|
|
|
Total
assets |
|
484,831 |
15,711 |
262,010 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Loans |
4 |
(4,680,012) |
- |
(4,345,067) |
Total non-current
liabilities |
|
(4,680,012) |
- |
(4,345,067) |
|
|
|
|
|
Current liabilities |
|
|
|
|
Loans |
4 |
- |
(3,820,758) |
- |
Trade and other payables |
5 |
(138,526) |
(2,071,469) |
(293,922) |
Total current
liabilities |
|
(138,526) |
(5,892,227) |
(293,922) |
|
|
|
|
|
Total
liabilities |
|
(4,818,538) |
(5,892,227) |
(4,638,989) |
|
|
|
|
|
Net
liabilities |
|
(4,333,707) |
(5,876,516) |
(4,376,979) |
|
|
|
|
|
EQUITY |
|
|
|
|
Shares and stock |
2 |
83,052,594 |
81,815,002 |
82,123,043 |
Other reserves |
|
(60,782,660) |
(61,433,459) |
(61,173,074) |
Accumulated losses |
|
(26,603,641) |
(26,258,059) |
(25,326,948) |
|
|
|
|
|
Total
deficit |
|
(4,333,707) |
(5,876,516) |
(4,376,979) |
|
|
|
|
|
The notes numbered 1 to 6 are an integral part of the interim
financial information.
Statement of Cash Flows
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
Six months |
Six months |
Year ended |
|
|
|
ended |
ended |
31 |
|
Note |
|
30 June |
30 June |
December |
|
|
|
2016
US$ |
2015
US$ |
2015
US$ |
Cash flows from operating
activities |
|
|
|
|
|
Loss before taxation |
|
|
(1,276,693) |
(451,569) |
479,542 |
Adjustments for: |
|
|
|
|
|
- Share based
payment |
|
|
151,524 |
- |
- |
- Foreign exchange
revaluations |
|
|
527,146 |
(2,213) |
224,065 |
Changes in working capital: |
|
|
|
|
|
- (Increase) / Decrease
in trade and other receivables |
|
|
(9,878) |
34,613 |
41,700 |
- Increase / (Decrease)
in trade and other payables |
|
|
(155,396) |
(2,435) |
(1,773,563) |
- Taxation paid |
|
|
- |
- |
- |
|
|
|
|
|
|
Net cash used in
operations |
|
|
(763,297) |
(149,033) |
(1,028,256) |
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
Share/stock issues (net of issue
costs) |
|
|
641,293 |
- |
342,148 |
Finance income |
|
|
- |
- |
- |
Finance costs |
|
|
(350,936) |
(272,571) |
(584,092) |
Loans received |
|
|
685,581 |
687,963 |
1,529,290 |
|
|
|
|
|
|
Net cash flows from
financing activities |
|
|
975,938 |
145,821 |
1,287,346 |
|
|
|
|
|
|
Net increase in cash
and cash equivalents |
212,641 |
3,212 |
259,090 |
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period |
|
|
259,864 |
817 |
816 |
Foreign exchange on cash
balances |
|
|
302 |
5 |
(42) |
|
|
|
|
|
|
Cash and cash
equivalents at end of period |
|
|
472,807 |
4,024 |
259,864 |
|
|
|
|
|
|
The notes numbered 1 to 6 are an integral part of the interim
financial information.
Notes (forming part of the interim
financial information)
1. Summary of significant accounting
policies
The following accounting policies have been applied consistently
in dealing with items which are considered material in relation to
the financial information.
1.1. Basis of
preparation
This interim consolidated financial information is for the six
months ended 30 June 2016 and has
been prepared in accordance with International Accounting Standard
34 “Interim Financial Statements”. The accounting policies applied
are consistent with International Financial Reporting Standards
(“IFRS”) adopted for use by the European Union. The accounting
policies and methods of computation used in the interim
consolidated financial information are consistent with those
expected to be applied for the year ending 31 December 2016.
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 December 2016, but is derived from those
accounts. Statutory accounts for 2015 have been delivered to the
Registrar of Companies. The auditors have reported on those
accounts: their report was qualified and contained a disclaimer of
opinion and contained statements under section 498(2) or (3) of the
Companies Act 2006.
1.2. Going
concern
The Directors have considered all available information about
the future events when
considering going
concern. The Directors have reviewed cash flow forecasts for 12
months following the date of these Financial Statements.
The cash balance held at 30 June
2016 is sufficient to ensure the company can pay its debts
as they fall due. A further fundraise has been completed post
year end increasing cash reserves. Based on this, the Directors
believe it is appropriate to continue to adopt the going concern
basis of accounting for the preparation of the annual financial
statements.
Additionally Hillgrove Investments Pty Limited, as the holder of
Convertible Loan Agreement, confirms that it will not seek
repayment of any amounts due under the Note or Convertible Loan
Agreements until at least 12 months beyond publication of the
Company’s 2015 annual financial statements.
1.3.
Functional and presentational currency
This interim financial information is presented in US dollars
which is the Group’s functional currency. The principal rates used
for translation are:
|
|
|
|
30 June
2016
Closing |
30 June
2015
Average |
British Pounds |
|
|
|
$1.3346 |
$1.4491 |
2. SHARE CAPITAL
|
0.5 p
Ordinary shares |
Deferred
shares |
4.5 p
Deferred shares |
4.0 p
Deferred shares |
|
|
|
|
|
Balance at 1
January 2016 |
430,163,261 |
388,496,594 |
17,373,523 |
9,737,353 |
- Share
issue |
139,309,574 |
|
|
|
|
|
|
|
|
Balance at 30 June
2016 |
569,472,835 |
388,496,594 |
17,373,523 |
9,737,353 |
The deferred shares have no voting rights and do not carry any
entitlement to attend general meetings of the Company. They will
carry only a right to participate in any return of capital once an
amount of £100 has been paid in respect of each ordinary share. The
Company will be authorised at any time to affect a transfer of the
deferred shares without reference to the holders thereof and for no
consideration.
On 26 January 2016 the Company
issued 9,090,909 ordinary shares of 0.5p each at a price of 0.55p
each, totalling £50,000.
On 23 February 2016 the Company
issued 35,714,285 ordinary shares of 0.5p each at a price of 0.7p
each, totalling £250,000.
On 3 March 2016 the Company issued
3,571,419 ordinary shares of 0.5p each at a price of 0.7p each,
totalling £25,000.
On 29 April 2016 the Company
announced that a full and final settlement had been reached with
Renewme to settle the remaining balance in exchange for the issue
of 90,932,961 new Ordinary shares. This will release the
Company from any and all previously disputed issues with
Renewme. Upon issue of these shares Renewme will own
15.96% of the expanded share capital.
3. Loss per share
|
|
(Unaudited)
As at
30 June |
(Unaudited)
As at
30 June |
(Audited)
As at
31 December |
|
|
2016 |
2015 |
2015 |
|
|
|
|
|
Total comprehensive (expense)/profit
(US$) |
|
(749,545) |
(451,569) |
703,607 |
|
|
|
|
|
Weighted average number of
shares |
|
322,223,161 |
285,425,948 |
285,425,948 |
|
|
|
|
|
|
|
|
|
|
Loss per share (US$) |
|
<(0.01) |
<(0.01) |
<0.01 |
4. LOANS
|
|
(Unaudited)
As at
30 June |
(Unaudited)
As at
30 June |
(Audited)
As at
31 December |
|
Notes |
2016
US$ |
2015
US$ |
2015
US$ |
|
|
|
|
|
Hillgrove Investments Pty
Limited |
4.1 |
4,680,012 |
3,820,758 |
4,345,067 |
|
|
|
|
|
Total loans |
|
4,680,012 |
3,820,758 |
4,345,067 |
Classified as: |
|
|
|
|
-
Current |
|
- |
3,820,758 |
- |
-
Non-current |
|
4,680,012 |
- |
4,345,067 |
4.1. Hillgrove Loan
Hillgrove Investments Pty Limited (“Hillgrove”) has provided the
PowerHouse Energy Group plc with a convertible loan agreement
amounting to $4,680,012 – which can
be increased at Hillgrove’s option. The loan is secured by a
debenture over the assets of the company and carries interest of 15
per cent per annum.
Hillgrove have provided a letter of support indicating they will
not call the “note” for a period of at least 12 months following
the publication of the 2015 Financial Statements for the year ended
31 December 2015, this date being
30 June, 2017.
5. TRADE AND OTHER PAYABLES
|
|
|
(Unaudited)
As at
30 June |
(Unaudited)
As at
30 June |
(Audited)
As at
31 December |
|
|
|
2016
US$ |
2015
US$ |
2015
US$ |
|
|
|
|
|
|
Trade creditors |
|
|
1,702,825 |
1,702,825 |
1,701,144 |
RenewMe |
|
|
- |
318,712 |
316,721 |
Other accruals |
|
|
49,932 |
49,932 |
49,620 |
|
|
|
|
|
|
Total trade and other
payables |
|
|
2,071,469 |
2,071,469 |
2,067,485 |
|
|
|
|
|
|
Classified as: |
|
|
|
|
|
- Current |
|
|
2,071,469 |
2,071,469 |
2,067,485 |
- Non-current |
|
|
- |
- |
- |
5.1. RenewMe
RenewMe Limited had been granted exclusive rights by Pyromex to
use, own, assemble and install and operate Pyromex systems in
territories also licensed to the Company’s subsidiary PowerHouse
Energy, Inc. The Company entered into a settlement agreement with
RenewMe whereby the parties agreed to change the respective
exclusive rights pertaining to the Pyromex technology. Under the
original settlement agreement Powerhouse Energy, Inc. had the
obligation to pay five instalments of EUR
200,000 annually beginning 30 June
2011. The Company guaranteed the obligations under the
agreement of PowerHouse Energy, Inc. As PowerHouse Energy, Inc is
unable to meets its obligations, all remaining amounts (EUR 800,000) due under the original settlement
agreement have been recognised as a liability.
On 3 March 2014 the Company
announced that a settlement had been reached with Renewme to
release its claimed geographical licenses to use our technology
under a disputed royalty agreement with Pyromex and other claims
against the Company in return for €211,000 and the issue of
18,331,996 new Ordinary Shares in the Company. While the equity
portion of that settlement has been satisfied, the cash payment has
not been settled and the agreement has not been completed.
The Company is in active discussion with Renewme to finalise an
agreement.
On 29 April 2016 the Company
announced that a full and final settlement had been reached with
Renewme to settle the remaining balance in exchange for the issue
of 90,932,961 new Ordinary shares. This will release the
Company from any and all previously disputed issues with
Renewme. Upon issue of these shares Renewme will own 15.96%
of the expanded share capital.
Capital commitments not accrued for at the period end amounted
to £100,000 (2014 : nil) and related to plant and machinery that
had not yet been received.
6. SHARE OPTIONS
On 7 March 2016 the Company
granted options over a total of 15,000,000 ordinary shares of
0.5 pence each, at an exercise price
of 0.75 pence per share. The options
were granted to Directors, Keith
Allaun 6,000,000; Brent
Fitzpatrick 5,000,000; and James
Greenstreet 4,000,000; and vest immediately. They are not
subject to any performance conditions and will lapse 7 years from
the date of grant.