Half-year Report for the 6 months 30 Sep 2023

SulNOx Group PLC
08 December 2023
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

 

8 December 2023

SulNOx Group Plc (the "Company" or "SulNOx")

Financial Results for the Six Months to 30 September 2023

 

(Aquis Stock Exchange: SNOX)

The board of the directors of the Company (the "Board") is pleased to announce its unaudited half yearly financial results for the six months to 30 September 2023. A copy of these results has been published on the Company's website.

 

Chairman's Statement

 

It is with great pleasure that I inform you on the Company's main milestones and interim results for the 6 months to 30 September 2023. As you know, the year so far has been marked with the Company welcoming a new significant shareholder, and successful acceleration of product evaluations in the second half of the year, a positive momentum which has significantly boosted the Company's revenue prospects in the coming quarters.

 

For the 6 months to 30 September 2023, SulNOx generated increased revenue and reduced expenses compared to the same period in the previous year, resulting in a reduced loss of £869,814, compared to a loss of £964,702 in the same period last year. While sales are still behind our initial projections, we believe that recent evaluation results and interest, particularly in the maritime sector, will provide an upward push towards increased revenue and profitability.

 

SulNOx's achievements during the period include evaluation data evidencing material fuel and emissions savings and increased demand for product from major shipping companies and other large fossil fuel consumers. An enhanced management team (both technical hires and industry leaders) will provide the needed resources and direction to achieve our short and medium-term objectives.

 

Since the annual general meeting in September, the Company has been able to secure additional funds in order to continue with our plans to grow our global salesforce footprint. Recently, we have added a Technical Director, and two Senior Advisors, to the current team who will focus their attention on sales, growing and retooling our distribution network, and supporting operational management and client value-add.

 

The current economic uncertainty of geo-political events coupled with economic forecasts has led the Board to establish new goals of greater constraint. Within this framework our priorities are to maintain financial discipline and compliance based upon our strategic plan moving forward. As such, aside from essential key hires and engagements, we have decided to maintain a policy of austerity to ensure that the company is adequately funded until anticipated significant sales, or additional funding, materialize.

 

Since becoming Chairman of the Board just over 3 years ago, I have defended a management policy based on discipline and transparency. I am pleased to inform you that this policy is now bearing fruit and the enhanced team and new advisors are well-placed to drive the company forward. I remain confident that the augmented organizational structure, combined with a strengthened strategic investor base with a global vision, will provide the ability to adapt to the opportunities from Regulatory and other changing environments which we face today.

 

Despite a global backdrop of uncertainties and challenges, with the augmented team, coupled with the unique abilities of SulNOx to reduce fossil fuel consumption and emissions, we are ideally placed to make the very most of a market seeking immediate solutions for cost and climate issues that lie before us all.

 

I would like to end this note by expressing my sincerest thanks to our team, our distribution network and our investors, for your continued support and contribution to SulNOx, and look forward to an exciting future to which we will devote all our energies.

 

Enquiries:

 

SulNOx Group Plc

Steven Cowin, Chief Financial Officer

steven.cowin@sulnoxgroup.com

 

AQSE Corporate Adviser:

Allenby Capital Limited

Nick Harriss

020 3328 5656

The directors take responsibility for this announcement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SulNOx Group Plc

 







Consolidated Statement of Comprehensive income for the 6 months ended 30 September 2023

 





Unaudited

Audited

Unaudited


6 months to

year ended

6 months to


30-Sep-23

31-Mar-23

30-Sep-22


£

£

£





Revenue

135,727

              203,076

                         74,805





Cost of sales

            (78,701)

            (138,090)

              (64,438)





Gross profit

                  57,026

                64,986

              10,367





Distribution costs

                         -

                         -

                         -

Administrative expenses

          (926,840)

          (1,972,502)

          (975,069)





Operating loss

          (869,814)

          (1,907,516)

          (964,702)





Interest payable and similar expenses

-

-

-





Loss before taxation

      (869,814)

 (1,907,516)

(964,702)





Tax on Loss

                         -

              3,903

                         -





Loss for the financial period and total comprehensive income

          (869,814)

          (1,903,613)

          (964,702)









Earnings per share (pence)

                 (0.83)

                 (1.98)

                 (1.02)

 

 

 

 

 

 

 

 

 

SulNOx Group Plc

 


 





 

Consolidated Statement of Financial Position as at 30 September 2023

 





 


Unaudited

Audited

Unaudited

 


30-Sep-23

31-Mar-23

30-Sep-22

 


£

£

£

 

Non-current assets

 


 

Intangible assets

       7,279,545

          7,479,545

               7,679,545

 

Property, plant and equipment

               13,925

                  15,914

                       21,047

 


       7,293,470

          7,495,459

               7,700,592

 

Current assets

 



 

Inventory

           128,633

              79,072

                  143,343

 

Debtors

             130,540

                47,594

                     81,632

 

Cash at bank and in hand

       562,257

                522,868

                  311,109

 


       821,430

              649,534

                  536,084

 





 

Creditors: amounts falling due within one year

           (563,589)

              (360,683)

                 (248,819)

 





 

Net current assets

       257,841

              288,851

                   287,265

 

Total assets less current liabilities

     7,551,311

          7,784,310

               7,987,857

 





 

Net assets

     7,551,311

          7,784,310

               7,987,857

 





 

Capital and reserves

 


 

Called up share capital

       2,176,228

          2,018,831

               1,882,657

 

Share premium account

     14,391,409

        13,911,991

             13,322,916

 

Share based compensation reserve

           588,959

              588,959

                  578,844

 

Profit and loss account

      (9,605,285)

         (8,735,471)

             (7,796,560)

 

Shareholders' funds

     7,551,311

          7,784,310

               7,987,857

 

 

 

 

SulNOx Group Plc

 










Consolidated Statement of Changes in Equity for the 6 months ended 30 September 2023

 









Share 




Called

Share

Based




Up Share

Premium

Compensation

Retained



Capital

Account

Reserve

Earnings

Total


£

£

£

£

£







Balance at 1 April 2022

    1,882,657

      13,322,916

              578,844

      (6,831,858)

        8,952,559

 

Loss of total comprehensive income for the period

                     -

                         -

                            -

          (964,702)

          (964,702)

Balance at 30 September 2022

    1,882,657

      13,322,916

              578,844

      (7,796,560)

        7,987,857

 

Loss of total comprehensive income for the period

                     -

                         -

                            -

          (938,911)

          (938,911)

Issue of share capital

136,174

589,075

-

-

725,249

Movement on reserve

            -

           -

                            10,115

                         -

           10,115

Balance at 31 March 2023

    2,018,831

      13,911,991

              588,959

      (8,735,471)

        7,784,310

 

Loss of total comprehensive income for the period

                     -

                         -

                            -

          (869,814)

          (869,814)

Issue of share capital

157,397

       479,418

                            -

                         -

      636,815

Balance at 30 September 2023

    2,176,228

      14,391,409

              588,959

      (9,605,285)

      7,551,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SulNOx Group Plc

 

Consolidated Cash Flows for the 6 months ended 30 September 2023

 






Unaudited

Audited

Unaudited


6 months to

year ended

6 months to


30-Sep-23

31-Mar-23

30-Sep-22


£

£

£

Cash flows from operating activities

 



Loss for the year after tax

                (869,814)

                (1,903,613)

                (964,702)

 

Adjustments for:

 



Taxation charge

                                -

                   (3,903)

                                -

Amortisation and impairment of intangible assets

                  200,000

                  400,243

                  200,243

 

Depreciation and impairment of property, plant and equip

                          1,989

                       5,956

                          3,014

Loss on disposal of fixed assets

                                -

2,192                  

                                -

 

Tax received

-

3,903

-

Share based equity payment

                    -

                                10,115

                                -

 

Movement in working Capital

 



(increase)/decrease in inventories

                    (49,561)

                     85,395

                                21,124

(increase)/decrease in trade and other receivables

                   (82,946)

                    (157,435)

                   (3,581)

Increase/(decrease) in trade and other payables

                202,906

                  289.377

                    (10,377)

Cash generated from operations

                (597,426)

              (1,267,770)

                (754,279)

Net cash from operating activities

                (597,426)

                (1,267,770)

                (754,279)

Cash flows from financing activities

 



Proceeds from issue of shares

              636,815

                  725,250

                  -

Net cash from financing activities

               636,815

                  725,250

                  -

Net increase/(decrease) in cash and cash equivalents

               39,389

                  (542,520)

(754,279)                    

Cash and cash equivalents at beginning of year

522,868                    

                    1,065,388

                    1,065,388

Cash and cash equivalents at end of year

               562,257

                    522,868

                  311,109

 

 

 

SulNOx Group Plc

 

Notes to the Interim Financial Statements

 

1.    General Information

 

SulNOx Group Plc is a public limited company (the "Company") incorporated in England & Wales (registration number 08449586). The Company is domiciled in the United Kingdom and its registered office is 10 Orange Street, London WC2H 7DQ. The Company's ordinary shares are traded on the AQSE Growth Market ("AQSE") (formerly NEX). Copies of the interim report are available from the Company's website www.sulnoxgroup.com. Further copies of the Interim Report and Accounts may be obtained from the address above.

 

The Company's principal activity is the procurement of orders for customers wishing to use two fuel emulsifier products previously developed by the group and now owned under licence to Nouryon BV.

 

2.    Basis of Preparation

 

The interim financial statements of the Company and its subsidiaries for the six months ended 30 September 2023, which are unaudited, have been prepared in accordance with International Financial Reporting Standards ("IFRS").

 

The financial information contained in the interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the full preceding statutory reporting period is based on the statutory accounts for the year ended 31 March 2023. Those accounts, upon which the auditors, Jeffreys Henry LLP, issued a report which was unqualified, have been delivered to the Registrar of Companies.

 

As permitted, this interim report has been prepared in accordance with the AQSE Growth Market Rules for Issuers and not in accordance with IAS 34 "Interim Financial Reporting" therefore it is not fully compliant with IFRS.

 

The interim financial statements are presented in sterling.

 

3.    Loss per share

 

Basic loss per share is 0.83p. The basic loss per ordinary share is calculated by dividing the loss of £869,914 by 104,876,470, the weighted average number of shares in issue during this period.

 

The loss attributable to equity holders (holders of ordinary shares) of the Company for calculating the fully diluted loss per share is identical to that used for calculating the loss per share. The exercise of share options would have the effect of reducing the loss per share and is therefore anti-dilutive.

 

 

 

SulNOx Group Plc

 

Notes to the Interim Financial Statements

 

4.      Post-Period Event

On 11 October 2023 the Company announced that Nistadgruppen AS, an existing substantial shareholder, had subscribe for 3,111,111 new ordinary shares of 2 pence each at a price of 22.5 pence per share to raise a total of £700,000, before expenses.

 

 

 

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