Half-year Report for the 6 months 30 Sep 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.
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SulNOx Group Plc |
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Consolidated Statement of Comprehensive income for the 6 months ended 30 September 2023 |
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Unaudited |
Audited |
Unaudited |
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6 months to |
year ended |
6 months to |
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30-Sep-23 |
31-Mar-23 |
30-Sep-22 |
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£ |
£ |
£ |
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Revenue |
135,727 |
203,076 |
74,805 |
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Cost of sales |
(78,701) |
(138,090) |
(64,438) |
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Gross profit |
57,026 |
64,986 |
10,367 |
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Distribution costs |
- |
- |
- |
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Administrative expenses |
(926,840) |
(1,972,502) |
(975,069) |
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Operating loss |
(869,814) |
(1,907,516) |
(964,702) |
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Interest payable and similar expenses |
- |
- |
- |
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Loss before taxation |
(869,814) |
(1,907,516) |
(964,702) |
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Tax on Loss |
- |
3,903 |
- |
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Loss for the financial period and total comprehensive income |
(869,814) |
(1,903,613) |
(964,702) |
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Earnings per share (pence) |
(0.83) |
(1.98) |
(1.02) |
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SulNOx Group Plc |
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Consolidated Statement of Financial Position as at 30 September 2023 |
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Unaudited |
Audited |
Unaudited |
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30-Sep-23 |
31-Mar-23 |
30-Sep-22 |
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£ |
£ |
£ |
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Non-current assets |
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Intangible assets |
7,279,545 |
7,479,545 |
7,679,545 |
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Property, plant and equipment |
13,925 |
15,914 |
21,047 |
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7,293,470 |
7,495,459 |
7,700,592 |
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Current assets |
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Inventory |
128,633 |
79,072 |
143,343 |
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Debtors |
130,540 |
47,594 |
81,632 |
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Cash at bank and in hand |
562,257 |
522,868 |
311,109 |
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821,430 |
649,534 |
536,084 |
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Creditors: amounts falling due within one year |
(563,589) |
(360,683) |
(248,819) |
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Net current assets |
257,841 |
288,851 |
287,265 |
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Total assets less current liabilities |
7,551,311 |
7,784,310 |
7,987,857 |
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Net assets |
7,551,311 |
7,784,310 |
7,987,857 |
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Capital and reserves |
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Called up share capital |
2,176,228 |
2,018,831 |
1,882,657 |
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Share premium account |
14,391,409 |
13,911,991 |
13,322,916 |
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Share based compensation reserve |
588,959 |
588,959 |
578,844 |
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Profit and loss account |
(9,605,285) |
(8,735,471) |
(7,796,560) |
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Shareholders' funds |
7,551,311 |
7,784,310 |
7,987,857 |
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SulNOx Group Plc |
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Consolidated Statement of Changes in Equity for the 6 months ended 30 September 2023 |
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Share |
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Called |
Share |
Based |
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Up Share |
Premium |
Compensation |
Retained |
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Capital |
Account |
Reserve |
Earnings |
Total |
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£ |
£ |
£ |
£ |
£ |
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Balance at 1 April 2022 |
1,882,657 |
13,322,916 |
578,844 |
(6,831,858) |
8,952,559 |
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Loss of total comprehensive income for the period |
- |
- |
- |
(964,702) |
(964,702) |
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Balance at 30 September 2022 |
1,882,657 |
13,322,916 |
578,844 |
(7,796,560) |
7,987,857 |
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Loss of total comprehensive income for the period |
- |
- |
- |
(938,911) |
(938,911) |
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Issue of share capital |
136,174 |
589,075 |
- |
- |
725,249 |
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Movement on reserve |
- |
- |
10,115 |
- |
10,115 |
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Balance at 31 March 2023 |
2,018,831 |
13,911,991 |
588,959 |
(8,735,471) |
7,784,310 |
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Loss of total comprehensive income for the period |
- |
- |
- |
(869,814) |
(869,814) |
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Issue of share capital |
157,397 |
479,418 |
- |
- |
636,815 |
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Balance at 30 September 2023 |
2,176,228 |
14,391,409 |
588,959 |
(9,605,285) |
7,551,331 |
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SulNOx Group Plc
Consolidated Cash Flows for the 6 months ended 30 September 2023 |
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Unaudited |
Audited |
Unaudited |
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6 months to |
year ended |
6 months to |
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30-Sep-23 |
31-Mar-23 |
30-Sep-22 |
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£ |
£ |
£ |
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Cash flows from operating activities |
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Loss for the year after tax |
(869,814) |
(1,903,613) |
(964,702) |
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Adjustments for: |
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Taxation charge |
- |
(3,903) |
- |
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Amortisation and impairment of intangible assets |
200,000 |
400,243 |
200,243 |
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Depreciation and impairment of property, plant and equip |
1,989 |
5,956 |
3,014 |
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Loss on disposal of fixed assets |
- |
2,192 |
- |
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Tax received |
- |
3,903 |
- |
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Share based equity payment |
- |
10,115 |
- |
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Movement in working Capital |
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(increase)/decrease in inventories |
(49,561) |
85,395 |
21,124 |
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(increase)/decrease in trade and other receivables |
(82,946) |
(157,435) |
(3,581) |
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Increase/(decrease) in trade and other payables |
202,906 |
289.377 |
(10,377) |
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Cash generated from operations |
(597,426) |
(1,267,770) |
(754,279) |
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Net cash from operating activities |
(597,426) |
(1,267,770) |
(754,279) |
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Cash flows from financing activities |
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Proceeds from issue of shares |
636,815 |
725,250 |
- |
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Net cash from financing activities |
636,815 |
725,250 |
- |
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Net increase/(decrease) in cash and cash equivalents |
39,389 |
(542,520) |
(754,279) |
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Cash and cash equivalents at beginning of year |
522,868 |
1,065,388 |
1,065,388 |
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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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