Trading Update

Libertine Holdings PLC

22 March 2024

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Libertine Holdings PLC

("Libertine" the "Company" or the "Group")

Trading Update

Libertine Holdings PLC (LSE AIM: LIB), a developer of Linear Generator technology, today provides an update on trading and operations for the year ending 31 March 2024 ("FY24").

During the year, Libertine completed its Phase 1 support for the KARNO™ linear generator with Hyliion Holdings Corp. (NYSE: HYLN, "Hyliion"), and the KARNO Hypertruck vehicle demonstrator was exhibited at the ACT Expo in Anaheim, California in May 2023. In October 2023 Hyliion changed its strategic focus to concentrate solely on stationary power generation applications using the KARNO linear generator technology.

As announced on 7 February 2024, in January 2024 Libertine entered into a completion cost agreement ("CCA") with Hyliion on its existing Phase 1 statements of work ("SOWs"). Payment for the completion costs was received in February 2024 and extends Libertine's expected cash runway through to July 2024. Also in January 2024, the Company entered into an additional SOW ("January SOW") to support continued testing of the HEXAGEN linear e-machine and control sub-systems supplied by Libertine and incorporated within Hyliion's KARNO generator.

Hyliion plans to build production units for the entire linear generator system in-house, and the January SOW extends the option period that Hyliion has to negotiate IP licensing rights with Libertine to 31 July 2024 ("Hyliion option period"), four months into the next financial year.

The Company remains committed to developing its intelliGEN™ and HEXAGEN technology platforms which the Company provides to its OEM customers for their development of Linear Generator and Linear Motor products. The Company has recently implemented intelliGEN and HEXAGEN platform performance and durability enhancements, which are planned to satisfy stage-gate performance requirements for entry into OEM new product development programmes expected to commence in 2024.

Whilst commercial interest in the Company's technology platforms remains good, and the Company has made both technical and business development progress in the year, the extension of the Hyliion option period coupled with the timing of business development and sales activities have impacted the expected timing of new revenues, such that full year revenues for FY24 are expected to be below market expectations, at c.£0.3m (FY23: £0.9m).

As of 28 February 2024, the Group had cash reserves of £0.9m, which provide the Group, absent any additional revenues, with the funds required to maintain current operations through to July 2024. The Company is currently reviewing options to extend its funding position.

Sam Cockerill, Chief Executive of Libertine, commented: "We have made good technical and business development progress in the year and recent platform enhancements provide us with confidence that we can commence further customer programmes in FY25.

Whilst automotive applications could ultimately provide the majority of Libertine's addressable market share, battery electric vehicle market evolution uncertainties are feeding into customer product strategies and the timing of automotive product development programmes.

The addressable market potential for our technology continues to expand, with the emergence of dispatchable power generation applications, informed by inbound enquiry from multiple energy service businesses and engine OEMs across a number of geographic regions. Linear Generator technology is increasingly recognised as an important technology solution for data centres and other behind-the-meter dispatchable power generation applications.

We expect that the strategic partnership agreement recently signed with BASEBATT will support business development and pilot programme delivery in FY25."

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)	[phone]
James Sinclair-Ford
Dougie McLeod
Hugh Rich (Corporate Broking)
Tavistock (Public Relations and Investor Relations)	[phone]
Rebecca Hislaire	[e-mail]
Saskia Sizen

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™ 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.

 

END