Half Year Update

RNS Number : 2713E

AMTE Power PLC

10 March 2022

 

10 March 2022

AMTE POWER PLC

Market-leading innovator and manufacturer of advanced battery cells for the global

Energy Storage and Automotive Markets

Half Year Update

Business on clear evolutionary pathway to commercialisation

Kevin Brundish, CEO of AMTE Power said:

"A year on from listing we have used our proven cell manufacturing expertise to forge our clear pathway to full commercialisation as the market leader in advanced battery cells focusing on the huge global markets of energy storage and high-performance automotive sectors. We have invested in ongoing development, increased cell production rates, and developed commercial relationships and partnerships as well as refined our plans during the past six months. We anticipate that significant milestones will be achieved during 2022. 

AMTE is an exciting, commercially advanced business, with a depth of operational expertise and management know-how to deliver on its plans and looks forward to engaging with key stakeholders as we achieve important steps in the business' evolution."

Update on achievements and milestones:

· Battery cell development continues at pace - both the Ultra Energy (UE) cell and Ultra High Power (UHP) cell currently undergoing significant scale up and testing trials at the UK Battery Industrialisation Centre ("UKBIC") where the UK Government has invested £130m into a high-rate cell production facility.

o  AMTE was one of the first to take advantage of this facility as part of the scale up of its products in advance of commercialisation, commencing work there in 2021.

o  Trials using Gigascale production equipment have achieved goals, looking to raise the bar further.

o  Continued leveraging of opportunities from manufacturing know-how at AMTE's unique Thurso production facility with production rates increasing during the period and planning permission granted to extend this site and capability.

o  Ultra Storage our LFP cell, Ultra Prime and Ultra Safe cells continue to hit development milestones.

· Development and commercial partnerships maturing to active commercial discussions.

o  Named development and steering committee partners include BMW, Arrival, QinetiQ, Faradion.

o  Initial commercial supply opportunities equivalent to 6 GWh.

o  First commercial contract for Ultra Safe sodium-ion cells with AceOn announced today.

· AMTE continues to progress and underpin its plans for a new Gigafactory.  

o  Three potential sites have been identified in the UK, with engagement underway with local authorities and design development.

o  Medium term scope increased to 10 GWh in a modular approach.

o  A final decision on Gigafactory site selection is expected in 2022, with commercial production in 2025.

o  Continued discussions with the Automotive Transformation Fund and Advanced Propulsion Centre regarding government funding to support Gigafactory development.

· Successful launch of Australian joint venture with InfraNomics.

o  AMTE to licence Ultra Storage cell to joint venture company, Bardan Cells.

o  Proposed factory has initial target of 200,000 cells per annum with plan to scale to 2GWh.

o  Negotiations with equipment suppliers nearing completion, and site selection, equipment ordering and ground-breaking all expected in 2022. Bardan work expected to provide valuable learning experience and underpin UK Gigafactory build.

o  Joint venture gives AMTE access to Australia's more mature renewables energy storage market.

AMTE Power qualified for Green Economy Mark Status on Admission:

· 50% of revenues contribute to global green economy.

· Business is at heart of the Green Industrial Revolution in UK and global energy transition.

Market trends - significant growth opportunities from energy transition

· Energy Storage :

o  Demand for Energy Storage Systems expected to grow 21% p.a. from 23 GWh p.a. in 2020 to 155 GWh p.a. in 2030. Globally there is expected to be a $262 billion cumulative investment between 2021 and 2030 (Bloomberg NEF 2019 & 21).

o  Legislative backdrop: reliance on fossil fuels is decreasing (UK Future Homes and Buildings Standard 2025).

· Automotive:  

o  The global automotive battery market is forecast to grow to $103bn by 2030, a CAGR of 6.57% from its 2021 size of $44bn in 2021 (Bloomberg NEF 2019 & 21).

o  By 2030 UK is expected to need 90 GWh per hours p.a. batteries for cars and light commercial vehicles, 11% of total demand across Europe. (APC)

o  Estimated market size of 91 GWh in Europe targeted by AMTE's UE cell and 5 GWh for power cells (1 GWh of which is for Fuel Cell Electric Vehicles) targeted by AMTE's UHP cell . (Exawatt)

Half Year Financial Performance reflects continued investment in commercialisation plans:

· Turnover of £ 0.8 1 million up 31 % (H1:2021: £0.62 million).

· Loss before tax of £2.65 million (H1 2021: loss £1.46 million)

· Balance sheet strength underpins investment phase:

o  Cash and cash equivalents of £6.26 million (H1 2021: £0.22 million).

Outlook

· UHP cell expected to achieve Gigafactory production rates at UKBIC

· Ultra Safe cell on track to be released in 2022

· Announcement of Gigafactory site in 2022 to support a ramp up in production, to meet growing demand driven by the global energy transition.

· As a result of refining product development, scale up, and increasing operational capacity, we expect reduced revenue and a moderate impact on loss before tax over the next two years.

· Conversion of MoUs into supply contracts in energy storage markets, in addition to existing contract, in support of accelerated build out of production capacity.

· Continue our transition towards high volume production.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

AMTE Power plc	Tel: [phone]
Kevin Brundish (Chief Executive Officer)
James Hobson (Chief Financial Officer)
WH Ireland Limited (NOMAD and Joint Broker)	Tel: [phone]
Chris Fielding / Ben Good
SI Capital Limited (Joint Broker)	Tel: [phone]
Nick Emerson / Nick Briers
Camarco	Tel: [phone]
Ginny Pulbrook / Tom Huddart / Rosie Driscoll

CEO Statement

Introduction

AMTE operates in specialist markets with huge growth potential. We are continuing to evolve and grow as we progress towards the full commercialisation of our battery cells. The Company is at the heart of the Green Industrial Revolution in the UK and part of wider-macro trends as the world seeks to decarbonise ahead of the legally binding 2050 Paris Agreement.

Our Key Markets

AMTE Power is a market-leading, technology-led, rapidly scaling developer and manufacturer of battery cells for the net zero economy. We have and continue to operate in specialist markets with huge growth potential. Currently, AMTE has a historic offtake agreement with a market leading specialist in telemetry systems to produce up to 1 million Ultra Prime cells per annum worth up to £50 million per annum by 2028. Whilst our core focus areas are the energy storage and automotive sectors, this contract has enabled AMTE to develop specialist knowhow to provide cells for wireless battery packs.

Energy storage

Renewable power generation has grown significantly in recent decades, but another leap forward is needed to hit countries' climate change pledges to be net zero by 2050.  In the UK specifically the Prime Minister announced an ambition last year for clean sources to generate 100% of electricity by 2035. With renewables' share of generation in the UK currently between 35 and 40%, we are going to require a huge amount of battery storage. To achieve scale in the battery storage market, the UK Government relaxed planning legislation in 2020 to make it easier to construct large batteries to store renewable energy from solar and wind farms across the UK.

Looking further afield, the Bloomberg New Energy Finance Global Energy Storage Outlook 2021 estimates that globally there will be a $262 billion cumulative investment between 2021 and 2030 in energy storage.  By 2050 that increases to $100 trillion investment expected in energy infrastructure for the clean energy transition.

These are huge numbers that demonstrate AMTE is operating in a sector with very strong growth fundamentals.  AMTE has generated a range of opportunities in this market sector, with potentially fast route to markets, in addition to opportunities through the joint venture in Australia.

Australia is one of the most mature energy storage markets in the world. In its latest report, IHS Markit predicts that energy storage installations in Australia will grow from 500 MW to more than 12.8 GWh by 2030. Today, Australia makes up less than 3% of total global installations for battery energy storage and is the seventh largest market globally. By 2030, it is forecast to comprise 7% of global installations and become the third largest market.

Automotive

The UK and the global electricity markets are going to see an exponential growth in the number of battery cells and technology over the coming years. One of the key sectors within that is the automotive industry. The global automotive battery market is forecast to grow to $103bn by 2030, a CAGR of 6.57% from its 2021 size of $44bn in 2021. To meet automotive supply chain needs, major international battery cell manufacturers are pouring billions into the construction of Gigafactories, given anticipated demand for lithium-ion batteries (ten-year CAGR of 25%), to fuel the expected passenger and broader automotive hybrid/EV revolution.

AMTE is at the heart of this revolution, investing in specialised, yet also significant, markets within the space, notably where superior battery cell performance is required.

AMTE's Ultra Energy (UE) cell is the subject of 94 automotive opportunities, with 43 of these each averaging 1,000,000 cells per annum, equating to roughly 2,000 electric vehicles per opportunity and a potential capacity of 6 GWh.

Our Ultra High Power (UHP) pouch cell has 26 commercial opportunities each with an average of 270,000 cells per annum. This gives a potential capacity of 0.28 GWh.

Operational Review

The framework agreement with the publicly funded UK Battery Industrialisation Centre ("UKBIC") is performing well and supports our planned scale-up of our UHP and UE 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 are ready for commercial production.

In December we undertook trials at the UKBIC for the UE cells as planned, to scale up production rates and now plan to certify the cells generated at a higher level of production rate. UHP is currently in scale up trials in the UKBIC and we are moving towards certification as we continue to refine high volume production rates. As a result of refining product development, scale up, and increasing operational capacity, we expect reduced revenue and a moderate impact on loss before tax over the next two years.

Underpinning the work in the UKBIC is AMTE's existing knowhow and production facility at Thurso. This is a key differentiator that gives us an operational advantage. Ultra Storage, Ultra Prime and Ultra Safe cells continue to hit development milestones. We also continue to utilise our Thurso factory to work with BMW and Arrival in the Ultra Project, a government initiative to progress EV development.

AMTE's plans for a Gigafactory are progressing. Three sites have been selected and initial engagement has continued with local authorities, designers and investment banks.  Commercial scale cell production is initially targeted at 2 GWh with the scope increased to 10 GWh using a modular approach. A final decision on site selection is expected by the end of 2022, with commercial take-up in 2025.

AMTE has gained access into the Australian storage market via its joint venture entity, Bardan Cells. Bardan will produce AMTE's energy storage cells in a proposed factory initially targeted at 200,000 cells per annum, with plans to scale to 2 GWh. Progress is at pace, and the expectation is to select a site, order equipment and break ground this year.

As AMTE continues to grow we continue to expand the team to ensure skills availability ahead of production expansion to Gigafactory levels. This includes investing in key resources and infrastructure to strengthen the Group's capabilities including internal legal counsel, supply chain and finance teams.

Our sustainability strategy continues to be developed with the aim of accreditation against the internationally recognised standard PAS 2060 Carbon Neutrality. As part of this strategy, we have also signed a number of Memorandums of Understanding for the recycling of our products to reduce the carbon output during the lifecycle of the cell.

Financial Review: half year to ended December 2021

During the six-month period under review the Group is reporting turnover of £0.81 million up 31% (H1 2021: £0.62 million), £0.65 million (H1 2021: £0.31 million) of which was grant income. Commercial income for the period was £0.17 million (H1 2021: £0.31 million) reflecting the focus on battery development rather than external contracts during the period. The Group loss before tax was £2.65 million (H1 2021: loss of £1.45 million).

These results reflect investment in product development and marketing to support the Group's increasing steps towards full commercialisation of its battery cell technologies, both in the UK and Australia.

Our balance sheet remains strong, with cash and cash equivalents of £6.26 million (H1 2021: £0.2m).

Conclusion and Outlook

We have continued our investment as we have increased cell production rates, developed commercial relationships and partnerships as well as refined our plans during the past six months. We anticipate that significant milestones will be achieved during 2022. 

We are excited for the current year; we are pleased with our progress and expansion towards Gigafactory production rates. We are also excited to have announced today our first commercial contract for Ultra Safe sodium-ion cells with AceOn. We are in a strong position in the market, with a depth of operational expertise and management know-how to deliver on our plans.

I would like to thank all of the AMTE team for their hard work and dedication as we continue on our path to commercialisation and contribution to the global green deal agenda.

Kevin Brundish

Chief Executive Officer

AMTE Power Plc

Consolidated Statement of Comprehensive Income

For the Period Ended 31 December 2021

		Unaudited		Audited
		6 months ended 31 December 2021	6 months ended 31 December 2020	Year ended 30 June 2021
		£	£	£
Turnover		815,174	623,536	1,967,348
Turnover analysed by class of business:
Revenue		162,371	309,487	687,287
Grant income		652,803	314,049	1,280,061
Cost of sales		(780,966)	(460,782)	(1,645,708)
Gross profit		34,208	162,754	321,640
Other operating income		143,887	88,356	461,396
Administrative expenses		(2,729,257)	(1,565,838)	(4,374,028)
Operating loss		(2,551,162)	(1,314,728)	(3,590,992)
Investment revenues		26,226	1,169	27,576
Finance costs		(120,991)	(142,110)	(245,893)
Loss before taxation		(2,645,927)	(1,455,669)	(3,809,309)
Income tax expense		(8,130)	45,926	104,794
Loss and total comprehensive income for the period		(2,654,057)	(1,409,743)	(3,704,515)

Basic loss per share (pence per share)	7	(7.47)	(5.33)	(12.59)
Diluted loss per share (pence per share)	7	(7.47)	(5.33)	(12.59)

All results were derived from continuing operations.

AMTE Power Plc

Consolidated Statement of Financial Position

As at 31 December 2021

		Unaudited				Audited
	Notes	31 December 2021		31 December 2020		30 June 2021
		£		£		£
				Restated
Non-current assets
Intangible assets	5	22,552,109		19,438,264		20,998,109
Property, plant and equipment	6	2,187,527		2,163,336		2,235,439
Investments		41,163		2		23,626
		24,780,799		21,601,602		23,257,174
Current assets
Inventories		363,555		231,755		280,666
Trade and other receivables		1,953,071		1,151,471		1,823,505
Current tax recoverable		361,500		142,469		240,000
Cash and cash equivalents		6,264,710		221,218		9,272,416
		8,942,836		1,746,913		11,616,587
Current liabilities
Borrowings		(5,636)		(20,349)		(20,365)
Lease liabilities		(115,667)		(114,060)		(147,453)
Licence liabilities		(830,229)		(575,177)		(676,191)
Derivative financial instruments		(7,002)		(28,249)		(11,466)
Trade and other payables		(1,151,565)		(1,006,769)		(957,540)
Deferred revenue		(28,564)		(28,564)		(28,564)
		(2,138,663)		(1,773,168)		(1,841,579)
Net current assets		6,804,173		(26,255)		9,775,008
Non-current liabilities
Borrowings		(75,636)		(85,509)		(75,636)
Lease liabilities		(817,993)		(937,328)		(853,465)
Licence liabilities		(16,766,525)		(15,184,713)		(16,188,357)
Long-term provisions		(209,495)		(208,687)		(209,082)
Deferred revenue		(2,421,131)		(2,178,862)		(2,299,682)
		(20,290,780)		(18,595,099)		(19,626,222)
Net assets		11,294,192		2,980,248		13,405,960
EQUITY
Called up share capital		179,943		337		176,223
Share premium account		21,662,570		8,983,314		20,808,951
Share option reserve		505,625		102,680		821,641
Retained earnings		(11,053,946)		(6,106,083)		(8,400,855)
Total equity		11,294,192		2,980,248		13,405,960

AMTE Power Plc Consolidated Statement of Changes in Equity For the Period Ended 31 December 2021
	Share capital		Share premium		Share option reserve		Retained earnings		Total equity attributable to owners of the parent
	£		£		£		£		£
Audited balance at 1 July 2020	321		8,067,562		128,052		(4,733,051)		3,462,884
Loss and total comprehensive income	-		-		-		(1,409,743)		(1,409,743)
Credit to equity for equity settled share-based payments	-		-		32,285		-		32,285
Issue of share capital	15		860,085		-		-		860,100
Exercise of share options	1		55,667		(20,946)		-		34,722
Share option forfeit	-		-		(36,711)		36,711		-
Unaudited balance at 31 December 2020 as restated	337		8,983,314		102,680		(6,106,083)		2,980,248
Loss and total comprehensive income	-		-		-		(2,294,772)		(2,294,772)
Credit to equity for equity settled share-based payments	-		-		947,099		-		947,099
Issue of share capital	38,446		12,917,254		-		-		12,955,700
Exercise of share options	2,892		678,690		(265,066)		-		416,516
Bonus issue	134,548		(134,548)		-		-		-
Cost of share issues	-		(1,598,831)		-		-		(1,598,831)
Warrant expense in the period	-		(36,928)		36,928		-		-
Audited balance at 30 June 2021	176,223		20,808,951		821,641		(8,400,855)		13,405,960
Loss and total comprehensive income	-		-		-		(2,654,057)		(2,654,057)
Exercise of share options	3,720		853,619		(331,693)		-		525,646
Share option forfeit	-		-		(966)		966		-
Credit to equity for equity settled share-based payments	-		-		16,643		-		16,643
Unaudited balance at 31 December 2021	179,943		21,662,570		505,625		(11,053,946)		11,294,192

AMTE Power Plc Consolidated Statement of Cashflows For Period Ended 31 December 2021			Unaudited		Audited
			6 months ended 31 December 2021	6 months ended 31 December 2020	Year ended 30 June 2021
			£	£	£
Cash flow from operating activities
Loss after taxation			(2,654,057)	(1,409,743)	(3,704,515)
Adjustment for:
Taxation charge			8,130	(45,926)	(104,794)
Taxation charge - RDEC included in operating income			(129,630)	(74,074)	(172,334)
Finance costs			120,991	114,220	245,893
Investment income			(21,762)	(1,169)	(27,576)
Fair value movement on derivatives			(4,464)	27,890	7,743
Depreciation of property, plant and equipment			181,320	160,870	328,537
Amortisation of intangible assets			76,275	65,999	140,562
Decrease in provisions			413	-	773
Deferred income released to P&L			(14,257)	(14,282)	-
Share-based payment expense			16,643	32,285	979,387
Changes in working capital:
Increase in inventories			(82,889)	(12,622)	(61,533)
Increase in trade and other receivables			(443,094)	(262,351)	(462,456)
Increase in trade and other payables			193,778	373,782	292,312
Cash absorbed by operations			(2,752,603)	(1,045,121)	(2,538,001)
Interest paid			(48,442)	(56,076)	(111,362)
Income tax refunded			-	74,074	37,128
Net cash (outflow) from operating activities			(2,801,045)	(1,027,123)	(2,612,235)
Cash flow from investing activities
Purchase of intangible assets			(529,121)	(451,292)	(712,215)
Purchase of property, plant and equipment			(133,408)	-	(252,174)
Government grants received			135,707	295,053	430,155
Interest received			4,225	1,169	3,952
Net cash used in investing activities			(522,597)	(155,070)	(530,282)
Cash flow from financing activities
Proceeds from issue of own shares			839,173	915,768	12,325,120
Repayment of borrowings			(14,729)	(19,581)	(29,438)
Payment of lease obligations			(67,258)	(56,233)	(106,703)
Payment of licence obligations			(441,250)	(386,112)	(723,615)
Net cash from financing activities			315,936	453,842	11,465,364
Net (decrease)/increase in cash and cash equivalents			(3,007,706)	(728,351)	8,322,847
Cash and cash equivalents at beginning of the period			9,272,416	949,569	949,569
Cash and cash equivalents at end of period			6,264,710	221,218	9,272,416
AMTE Power Plc Consolidated Statement of Cashflows For the Period Ended 31 December 2021 Changes in liabilities arising from financing activities:
	At 1 July 2020	Financing cash flows	Inception	Non-cash interest	At 31 December 2020
	£	£	£	£	£
Borrowings	125,439	(19,581)	-	-	105,858
Lease liabilities	1,107,621	(56,233)	-	-	1,051,388
Licence liabilities	15,096,055	(386,112)	-	1,049,947	15,759,890
	16,329,115	(461,926)	-	1,049,947	16,917,136
	At 1 January 2021	Financing cash flows	Inception	Non-cash interest	At 30 June 2021
	£	£	£	£	£
Borrowings	105,858	(9,857)	-	-	96,001
Lease liabilities	1,051,388	(50,470)	-	-	1,000,918
Licence liabilities	15,759,890	(337,503)	328,861	1,113,300	16,864,548
	16,917,136	(397,830)	328,861	1,113,300	17,961,467
	At 1 July 2021	Financing cash flows	Inception	Non-cash interest	At 31 December 2021
	£	£	£	£	£
Borrowings	96,001	(14,729)	-	-	81,272
Lease liabilities	1,000,918	(67,258)	-	-	933,660
Licence liabilities	16,864,548	(441,250)	-	1,173,456	17,596,754
	17,961,467	(523,237)	-	1,173,456	18,611,686

1.  General information

AMTE Power plc is a public company incorporated in the England and Wales. The address of its registered office is Suite 1, 3rd Floor 11-12 St. James's Square, London, United Kingdom, SW1Y 4LB.

AMTE Power Plc develops a range of lithium-ion and lithium-ion derivative battery cells to meet the needs of specialist customers. Such customers, which include manufacturers of high-performance vehicles, energy storage solutions and specialist engineering equipment, are not the primary focus of the international battery cell manufacturers and thereby offer a significant and scalable opportunity for the Group.

2.  Accounting policies

2.1.  Basis of preparation

The financial information set out in these interim consolidated financial statements for the six months ended 31 December 2021 is unaudited. The financial information presented are not statutory accounts prepared in accordance with the Companies Act 2006, and are prepared only to comply with AIM requirements for interim reporting. Statutory accounts for the year ended 30 June 2021 on which the auditors gave an audit report which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies. The annual financial statements of the Group are prepared in accordance with UK-adopted International Accounting Standards (IAS).

The interim consolidated financial statements have been prepared using consistent accounting policies as those adopted in the financial statements for the year ended 30 June 2021.

2.2. Basis of consolidation

The interim condensed 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 31 December 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group at cost plus post-acquisition changes in the group's share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group's share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

2.3. Going Concern

The Directors have considered all factors, including in COVID-19, as part of their assessment of going concern. They have prepared a cash flow forecast for the period ending 30 June 2023 and performed sensitivities to ensure that the cash was sufficient for the going concern opinion.  These sensitivities were based on a potential rise in costs across the business and lower than expected prototype and product sales as a result of delays in product development.

The Group expects to remain cash positive without the requirement for further fund raising based on delivering the existing strategy for a period of at least 12 months from the date of approval of these interim financial statements. 

The Group currently consumes cash resources and will continue to do so until sales revenues are sufficiently high to generate net cash inflows. It is therefore 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 interim financial statements.

3.  Segmental analysis

Operating segments are determined by the 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. In the periods covered in the interim condensed consolidated financial information, the Group operated mainly in the United Kingdom. All non-current assets are located in the United Kingdom.

4.  Intangible fixed assets

The Group's intangible fixed assets, which include development battery cells and IP rights, had additions of £1,811,839 in the six months to 31 December 2021 (six months to 31 December 2020: £1,622,552; 12 months to 30 June 2021: £3,392,387).

The Group capitalised the development costs relating to the products it is developing, in line with IAS 38, however it has not yet amortised the costs. The Group also records the value of the IP rights it holds through licences. The amortisation of the IP rights and the interest arising from the licence obligations has been capitalised into the intangible assets (development battery cells) whilst the battery cells are being developed. Amortisation of IP rights was £257,836 (six months to 31 December 2020: £245,427; 12 months to 30 June 2021: £455,417).

No impairments of intangible assets were made.

5.  Property, plant and equipment

There were no significant movements on tangible fixed assets over the period of the interim accounts.

6.  Right-of-use assets

The Group has lease contracts for buildings and equipment used in its operations, which have the following lease terms:

· Leased equipment has terms of between 3 and 5 years,

· Property leases have terms of under 3 years in the case of office space near Oxford and for 10  years for the manufacturing facility in Thurso,

· The sub-lease has a duration of under 3 years.

There were no additions to the Right-of-use assets for the six months to 31 December 2021 (six months to 31 December 2020: £nil; 12 months to 30 June 2021: £nil).  The charge for depreciation was £87,445 (six months to 31 December 2020: £87,441; 12 months to 30 June 2021: £174,887).

7.  Earnings per share

The calculation of the basic loss per share is based on the following data:

Number of shares	6 months ended 31 December 2021		6 months ended 31 December 2020		Year ended 30 June 2021
Weighted average number of ordinary shares for diluted earnings per share	35,535,654		26,440,220		29,422,110

In all periods presented 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)	6 months ended 31 December 2021		6 months ended 31 December 2020		Year ended 30 June 2021
	£		£		£
Loss for the period from continued operations	(2,654,057)		(1,409,473)		(3,704,515)
Earnings per share for continuing operations
Basic earnings per share (pence per share)	(7.47)		(5.33)		(12.59)
Diluted earnings per share (pence per share)	(7.47)		(5.33)		(12.59)

8.  Prior period restatement

For the six-month period ended 31 December 2020 equity has been restated for an amount of £23,790 to correct the allocation of the share-based payment expense and option forfeitures in this period. The allocations were corrected by the year ended 30 June 2021 however the timing split between the two halves of the year were misstated in the prior year interim accounts.

 

END

 

 

IR UKAARUSUORUR