Half-year Report

RNS Number : 4329J

Inspirit Energy Holdings PLC

29 March 2018

 

29 March 2018

Inspirit Energy Holdings PLC

("Inspirit Energy", the "Group" or the "Company")

Interim Results

Inspirit Energy Holdings PLC (AIM: INSP), the developer of micro Combined Heat and Power (microCHP) boilers, is pleased to announce its interim accounts for the six months ended 31 December 2017.

Chairman's Statement:

During the period, the Group has continued working to advance its microCHP boiler (the "Inspirit Charger") towards commercialisation.  The improvements to the design announced last year of the Group's Stirling engine technology, including simplification as part of the 'design for manufacture' ("DFM") process, has encouragingly maintained the peak electrical output up to 3.2kW in internal tests.

The engineering department has throughout the last period made significant developments in our regenerator technology. The increased efficiency in the regenerator will allow the Stirling engine to be manufactured from a commodity grade stainless steel derivative, which is both stronger and cheaper to manufacture than the previous proprietary "Inconel" materials.

The DFM process continues to yield several engineering improvements and manufacturing cost reductions whilst others are still expected. Whilst this DFM process remains ongoing, the Group is now looking to proceed to the certification process whereby the Inspirit Charger will be subjected to testing by a competent authority. Once this has been achieved, we can then look towards commencing field trails with commercial partners. The Company will update investors as these milestones are met over the forthcoming year.

The operating board believe that the progress over the last six months has been positive. Whilst we remain well positioned in the microCHP boiler technology market, ongoing funding for the development and commercialisation of our product remains a challenge. Accordingly, we continue to manage our resources whilst pushing forward with the product and expect this to continue in 2018.

The Board will provide further a updates in due course.

John Gunn, Chairman and CEO of Inspirit, commented,

"Last six months has seen another progressive step for the Company with reduction in development costs and the charger unit maintaining its output to management expectations."

-ends-

For further information please contact:

Inspirit Energy Holdings plc
John Gunn, Chairman and CEO	[phone]
Beaumont Cornish Limited  www.beaumontcornish.com (Nominated Advisor)
Roland Cornish / James Biddle	[phone]
Peterhouse Corporate Finance (Joint Broker)
Lucy Williams / Duncan Vasey	[phone]
SVS  Securities Plc (Joint Broker) Tom Curran	[phone]

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Comprehensive Income

for the six months ended 31 December 2017

				Group Six months  to 31 December 2017  Unaudited		Group Six months  to 31 December 2016  Unaudited		Group Year  to 30 June 2017  Audited
				£'000s		£'000s		£'000s
Revenue				-		-		-
Administrative expenses				(169)		(214)		(384)
Other Losses -Net								-
				────────		────────		────────
Operating loss				(169)		(214)		(384)
Finance costs				(15)		(1)		(73)
				────────		────────		────────
Loss before tax				(184)		(215)		(457)
Income tax credit				-		-		38
				────────		────────		────────
Loss for the period from continuing operations attributable to shareholders				(184)		(215)		(419)
				════════		════════		════════
Loss per share - Pence
Basic and diluted				(0.01)p		(0.02)p		(0.04)p
				════════		════════		════════

 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Financial Position as at 31 December 2017

				Group As at 31 December 2017  Unaudited		Group As at 31 December 2016  Unaudited	Group As at 30 June  2017  Audited
				£'000s		£'000s	£'000s
Non-Current Assets
Intangible assets				2,783		2,619	2,668
Tangible assets				49		58	53
				───────		───────	───────
				2,832		2,677	2,721
Current assets
Trade and other receivables				48		63	174
Cash and cash equivalents				53		73	30
				───────		───────	───────
				101		136	204
				───────		───────	───────
Current liabilities
Trade and other payables				(287)		(311)	(366)
Other borrowing				(180)		(120)	(199)
				───────		───────	───────
				(467)		(431)	(565)
				───────		───────	───────
Net Current Liabilities				(366)		(295)	(361)
Non-Current Liabilities
Trade and other payables				-		-	-
				───────		───────	───────
				2,466		2,382	2,360
				═══════		═══════	═══════
Equity
Share capital				1,818		1,334	1,568
Share premium				8,184		8,097	8,144
Other reserves				206		206	206
Merger reserve				3,150		3,150	3,150
Reverse acquisition reserve				(7,361)		(7,361)	(7,361)
Retained losses				(3,531)		(3,044)	(3,347)
				───────		───────	───────
Total				2,466		2,382	2,360
				═══════		═══════	═══════

 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Changes in Equity

For the six months ended 31 December 2017

	Attributable to the owners of the parent
	Share	Share premium	Other reserves	Merger reserve	Reverse acquisition reserve	Retained	Total
	capital					losses	Equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 July 2015	1,098	7,305	125	3,150	(7,361)	(2,371)	1,946
Loss for the year	-	-	-	-	-	(458)	(458)
Total comprehensive income for the year	-	-	-	-	-	(458)	(458)
Share issues	236	919	-	-	-	-	1,155
Share issue costs	-	(46)	-	-	-	-	(46)
Issue of warrants	-	(81)	81	-	-	-	-
Transactions with owners	236	792	81	-	-	-	1,109
Balance at 30 June 2016	1,334	8,097	206	3,150	(7,361)	(2,829)	2,597
Loss for the year	-	-	-	-	-	(419)	(419)
Total comprehensive income for the year	-	-	-	-	-	(419)	(419)
Share issues	234	58	-	-	-	-	292
Share issue costs	-	(11)	-	-	-	-	(11)
Debt Adjustment						(99)	(99)
Transactions with owners	234	47	-	-	-	(99)	182
Balance as at 30 June 2017	1,568	8,144	206	3,150	(7,361)	(3,347)	2,360
Loss for the period	-	-	-	-	-	(184)	(184)
Total comprehensive income for the period	-	-	-	-	-	(184)	(184)
Share issues	250	50	-	-	-	-	300
Share issue costs	-	(10)	-	-	-	-	(10)
Transactions with owners	250	40	-	-	-	(184)	106
Balance as at 31 December 2017	1,818	8,184	206	3,150	(7,361)	(3,531)	2,466

 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Cash Flows

For the six months ended 31 December 2017

			Group Six months  to 31 December 2017  Unaudited	Group Six months to 31 December 2016 Unaudited	Group Year to 30 June  2017 Audited
		Note	£'000	£'000	£'000
Operating activities
Net cash from operating activities		6	(137)	(14)	(185)
			───────	───────	───────
Net cash generated/(used) in operating activities			(137)	(14)	(185)
			───────	───────	───────
Investing activities
Acquisition of intangible assets			(115)	(124)	(173)
Acquisition of plant and equipment			-	-	(1)
			───────	───────	───────
Net cash from financing activities			(115)	(124)	(174)
			───────	───────	───────
Financing activities
Issue of share capital (Net of fees)			290	-	204
Finance costs			(15)	(1)	(73)
Increase in short term borrowing			-	(46)	-
Transactions with owners					-
			───────	───────	───────
Net cash from financing activities			275	(47)	131
			───────	───────	───────
Net cash outflow			23	(185)	(228)
Cash and cash equivalents at the beginning of the period			30	258	258
			───────	───────	───────
Cash and cash equivalents at the end of the period			53	73	30
			═══════	═══════	═══════

 

INSPIRIT ENERGY HOLDINGS PLC

Consolidated Notes to the Interim Financial Information

1.   General Information

      The principal activity of Inspirit Energy Holdings PLC ("the Company") during the period was that of an investment company which aims to invest in disruptive products or technologies that are either proven or at the later stages of development, which own or have exclusive licence to the relevant intellectual property and may benefit from feed-in tariffs or other renewable energy incentives.

      Inspirit Energy Holdings PLC is a company incorporated and domiciled in England and Wales and quoted on AIM, a market operated by the London Stock Exchange. The address of its registered office is 2^nd Floor, 2 London Wall Buildings, London, EC2M 5PP, United Kingdom.

2.   Basis of Preparation

The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006.  It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 30 June 2017 were approved by the Board of Directors on 22 December 2017 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.

The interim financial information for the six months ended 31 December 2017 has not been reviewed or audited.  The interim financial report has been approved by the Board on 28 March 2018.

Going concern

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Company to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the interim financial statements for the period ended 31 December 2017.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2017 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.inspirit-energy.com. The key financial risks are liquidity and credit risk.

Critical accounting estimates

The preparation of interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 2 of the Company's 2017 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

3.   Significant Accounting Policies

     The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2017, as described in those annual financial statements.

4.  Segmental Analysis

The Company's primary reporting format is business segments and its secondary format is geographical segments. The Company only operates in a single business and geographical segment. Accordingly no segmental information for business segment or geographical segment is required.

5.   Loss per Share

The loss per ordinary share is based on the Group's loss for the period of £184,000 (company's loss - 6 months to 31 December 2016 - £215,000; year ended 30 June 2017 - £419,000) and a basic and diluted weighted average number of ordinary shares of £0.001 each in issue of 1,420,806,859 (31 December 2016 - basic and diluted 936,806,859; 30 June 2017 - basic and diluted 1,170,806,859).

6.   Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities

	Group Six months  to 31 December 2017  Unaudited	Group Six months to 31 December 2016 Unaudited	Group Year to 30 June  2017 Audited
	£'000s	£'000s	£'000s
Operating Loss for the period	(184)	(241)	(457)
Adjustments for :
(Increase)/Decrease in receivables	125	264	192
(Decrease)/Increase in payables	(97)	(72)	29
Depreciation	4	7	11
Income tax credit received	-	-	-
Other adjustments	-	-	(33)
Finance expense	15	1	73
	───────	───────	───────
Net cash from operating activities	(137)	(14)	(185)
	═══════	═══════	═══════

7.   Issued and fully paid

      The issued share capital is as follows

	Ordinary 'A' shares of		Ordinary 'B' shares of		Deferred shares of
	£0.001		£0.001		£0.99
31 December 2017	1,420,806,859		-		400,932
30 June 2017	1,170,806,859		-		400,932
31 December 2016	936,806,859		-		400,932

8.   Copies of this interim financial information document are available from the Company at its registered office at 2^nd Floor, Number 2, London Wall Buildings, London, EC2M 5PP. The interim financial information document will also be available on the Company's website www.inspirit-energy.com.

 

END

 

 

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