Final Results
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 £130 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 £2.0 million (2020: £1.3 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 £12.9 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 (£3.2m) (2020: (£2.0m)) and adjusted loss before tax of £3.1m (2020: (£2.0m)) following the adjustment for share based payments of £0.9m in 2021 and £0.1m in 2020.
· Cash and cash equivalents at 30 June 2021 of £9.3m (2020: £1.0m).
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:
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AMTE Power plc Kevin Brundish (Chief Executive Officer) Adam Westcott (Chief Financial Officer)
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Tel: +44 (0)1847 867 200 |
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WH Ireland Limited (NOMAD and Joint Broker) Chris Fielding / Ben Good
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Tel: +44 (0)207 220 1666 |
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SI Capital Limited (Joint Broker) Nick Emerson / Nick Briers
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Tel: +44 (0)1483 413 500
|
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Novella Communications Tim Robertson / Fergus Young |
Tel: +44 (0)203 151 7008 |
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 4th 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 £2.0m compared to £1.3m 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 £3.8m for the year (2020: £1.9m).
The dominant event in the year was the raising of £12.9m 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 £12.9m 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 £9.3m (2020: £1.0m) 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 £2.0m (2020: £1.3m). 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 £3.8m (2020: £1.9m). 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 (£3.2m) (2020: £2.0m).
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 £28k (2020: £17k), while net finance costs totalled £246k (2020: £242k). 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 £277k for the year (2020: £222k). 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 £979k in share-based payments within the operating costs of the business.
Cash generation
Our cash position at the end of the year was £9.3m (2020: £0.9m). Operating activities resulted in £2.5m of cash outflow for the period to 30 June 2021 (2020: £1.3m). This was after a net investment in working capital of £0.2m (2020: £0.1m). Investment in PPE was £0.3m and funding on intangible assets was £0.7m. Financing of borrowings, asset financing and licence obligations totalled £0.9m. This was funded through the net proceeds of equity fundraising of £12.3m (2020: £3.0m). 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 £3.1m for the year (2020: £3.6m) 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 £1.6m (2020: £1.6m) 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 £0.9m 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 £0.3m (2020: £11.8m) to the value in the year along with an equivalent licence obligation. This resulted in interest and amortisation costs of £2.3m (2020: £2.1m) which were capitalised as development costs linked to the product development programmes.
Adam Westcott
Chief Financial Officer
Key Financials
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| Year ended 30 June 2021 | 15 months ended 30 June 2020 |
|
| £ | £ |
Turnover | £000s | 1,967 | 1,265 |
Gross Profit | £000s | 322 | 34 |
Gross Margin | % | 16.3% | 2.6% |
|
|
|
|
Operating Losses | £000s | (3,763) | (1,879) |
Adjusted EBITDA | £000s | (3,228) | (2,024) |
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|
|
|
Losses After Tax | £000s | (3,705) | (1,882) |
Diluted EPS | pence | (12.59) | (8.13) |
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|
|
|
Cash flow from operating activities | £000s | (2,612) | (1,145) |
Capital expenditure | £000s | (252) | (120) |
Cash balance | £000s | 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 |
| |||||||
|
|
| £ |
| £ |
| |||||
| |||||||||||
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) | ||||||
| |||||||||||
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|
|
| |||||||
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Earnings per share |
|
| |||||||||
Basic (pence per share) |
| (12.59) |
| (8.13) | |||||||
Diluted (pence per share) |
| (12.59) |
| (8.13) | |||||||
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|
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All results were derived from continuing operations.
The notes on pages 11 - 67 form part of these financial statements.
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GROUP STATEMENT OF FINANCIAL POSITION
|
| 30 June 2021 | 30 June 2020 | 01 April 2020 |
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|
|
| £ | £ | £ |
| |||||||||||||
|
|
| ||||||||||||||||||
| 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 |
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| ||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
|
|
| ||||||||||||||||||
| 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 |
| |||||||||||||||
|
|
| ||||||||||||||||||
|
|
|
|
|
|
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| |||||||||||||
|
|
| ||||||||||||||||||
| 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 account | Share option reserve | Retained earnings | Total |
| ||||||||||
|
| £ | £ | £ | £ | £ |
| |||||||||
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 |
| |||||||||||||||||||
|
| £ | £ | £ | £ |
| |||||||||||||||||
|
| ||||||||||||||||||||||
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 £1.
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 £13,405,960 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 2021 | 30 June 2020 |
| ||||||||
| £ | £ |
| ||||||||
| 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 |
| ||||||||
| £ | £ |
| ||||||||
| 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 £304,930 and £141,512 (2020: £611,023 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 £430,155 (2020: £999,059) 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 2021 | 30 June 2020 |
| £ | £ |
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 2021 | 30 June 2020 |
| ||||
| £ | £ |
| ||||
| 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 | £ | £ | |||||||||
| 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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