Half Yearly Report

RNS Number : 0636S

Inspirit Energy Holdings PLC

15 March 2016

 

15 March 2016

Inspirit Energy Holdings PLC

("Inspirit Energy" 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 2015.

Chairman's Statement

This has been another transformational period where the engineering concept for our microCHP boiler is now close to reality. The focus of the Company during the period has widened to include sales and marketing as part of the process of ensuring that our distribution partners are in place ahead of commercial launch.

The Company applied for and received UK and EU trademarks to protect the name "INSPIRIT CHARGER" as the name for our microCHP boiler.

The Inspirit Charger has now completed more than 1,500 hours of rigorous testing and the Company has demonstrated that the appliance will meet not only market requirements, but also our quality objective of creating a product which is "sealed for life". "Sealed for life" means that the Stirling engine, which is at the heart of the unit, requires no maintenance during its lifetime and that the appliance as a whole requires no more servicing than is required on a standard modern gas condensing boiler. This obviates the need to build a significant support infrastructure, being able to rely instead on the existing UK installer base of some 50,000 Gas Safe accredited gas engineers.

The applicable market for this technology is global, either as a boiler replacement product or as an add-on to an existing commercial plant room. In the UK there are in excess of 20 million gas boilers installed and more than 1.6 million new and replacement domestic gas boilers are installed each year. This is in addition to almost 300,000 commercial boiler installations each year. Europe as a whole has approximately 70 million boilers installed. These are the markets to which our technology is applicable.

Enertek International, based in Hull, is our partner for independent third party testing and is one of only two UK based engineering laboratories capable of fully testing microCHP appliances. The results of the tests will allow the Inspirit Charger to obtain certification for field trials, which are due to commence in Q2 2016. These are necessary steps the Company must take in order to prove its product reliable and safe ahead of market launch.

The Company will also submit, prior to the start of commercial production, an application for MCS Certification, enabling customers' installations to qualify for the UK Government's Feed in Tariff (FiT). This will include the testing of a production representative sample product under PAS67. Although our appliance is designed to be commercially viable in production without subsidy, the FiT is designed to stimulate customer interest and help the development of the microCHP market sector in the short to medium term.

Board Changes and Appointments:

David Lenigas stepped down as a Director of the Company on 21 December 2015.

Results for the Period

The operating loss for the six month period to 31 December 2015 amounted to £334,000

John Gunn, Chairman and CEO of Inspirit, commented, "The challenge for the Company in 2016 is to complete the testing and field trial phases and move towards commercial production of the Inspirit Charger by the end of the year. The results of our in-house trials over the past 12 months have given us a great deal of confidence that this schedule will be adhered to and, with this in mind, I would like to take this opportunity to thank all of the Company's staff and consultants for their hard work during the period and our shareholders for their support."

-ends-

For further information please contact:

Inspirit Energy Holdings plc                                               www.inspirit-energy.com

John Gunn, Chairman and CEO                                            [phone]

Nilesh Jagatia, CFO                                                                [phone]

Stockdale Securities Limited

( Nominated Advisor and Joint Broker)

Antonio Bossi / David Coaten                                                 [phone]

Peterhouse Corporate Finance

(Joint Broker)

Lucy Williams / Duncan Vasey                                               [phone]

Cadogan Leander

(Financial Public Relations)

Christian Taylor- Wilkinson / Alex Walters                             [phone]

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Comprehensive Income

for the six months ended 31 December 2015

				Group Six months  to 31 December 2015  Unaudited		Group Six months  to 31 December 2014  Unaudited		Group Year  to 30 June 2015  Audited
				£'000s		£'000s		£'000s
Revenue				-		-		-
Administrative expenses				(330)		(415)		(724)
				────────		────────		────────
Operating loss				(330)		(415)		(724)
Finance costs				(4)		(4)		(55)
				────────		────────		────────
Loss before tax				(334)		(419)		(779)
Income tax credit				-		-		207
				────────		────────		────────
Loss for the period from continuing operations attributable to shareholders				(334)		(419)		(572)
				════════		════════		════════
Loss per share - Pence
Basic and diluted				(0.05)p		(0.06)p		(0.08)p
				════════		════════		════════

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Financial Position as at 31 December 2015

				Group As at 31 December 2015  Unaudited		Group As at 31 December 2014  Unaudited	Group As at 30 June  2015  Audited
				£'000s		£'000s	£'000s
Non-Current Assets
Intangible assets				2,261		1,428	2,107
Tangible assets				76		82	76
				───────		───────	───────
				2,337		1,510	2,183
Current assets
Inventory				6		5	5
Trade and other receivables				366		319	447
Cash and cash equivalents				23		71	1
				───────		───────	───────
				395		395	453
				───────		───────	───────
Current liabilities
Trade and other payables				(453)		(127)	(370)
Other borrowing				(320)		-	(320)
				───────		───────	───────
				(773)		(127)	(690)
				───────		───────	───────
Net Current Liabilities				(378)		268	(237)
Non-Current Liabilities
Trade and other payables				-		(50)	-
				───────		───────	───────
				1,959		1,728	1,946
				═══════		═══════	═══════
Equity
Share capital				1,176		1,056	1,098
Share premium				7,574		6,991	7,305
Other reserves				125		110	125
Merger reserve				3,150		3,150	3,150
Reverse acquisition reserve				(7,361)		(7,361)	(7,361)
Retained losses				(2,705)		(2,218)	(2,371)
				───────		───────	───────
Total				1,959		1,728	1,946
				═══════		═══════	═══════

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Changes in Equity

For the six months ended 31 December 2015

	Share Capital £'000s	Share Premium £'000s	Other Reserves £'000s	Merger Reserve £'000s	Reverse Acquisition Reserve £'000s	Retained Losses £'000s	Total Equity £'000s
As at 30 June 2014	1,052	6,946	110	3,150	(7,361)	(1,799)	2,098
Comprehensive income
Loss for the period	-	-	-	-	-	(419)	(419)
Total comprehensive income	-	-	-	-	-	(419)	(419)
Transactions with owners
Share based payments	4	45	-	-	-	-	49
Total transactions with owners	4	45	-	-	-	-	49
As at 31 December 2014	1,056	6,991	110	3,150	(7,361)	(2,218)	1,728

As at 30 June 2015	1,098	7,305	125	3,150	(7,361)	(2,371)	1,946
Comprehensive income
Loss for the period	-	-	-	-	-	(334)	(334)
Total comprehensive income	-	-	-	-	-	(334)	(334)
Issue of new shares	78	287					365
Issue costs	-	(18)	-	-	-	-	(18)
Total transactions with owners	78	269	-	-	-	-	347
As at 31 December 2015	1,176	7,574	125	3,150	(7,361)	(2,705)	1,959

INSPIRIT ENERGY HOLDINGS PLC

Consolidated

Statement of Cash Flows

For the six months ended 31 December 2015

			Group Six months  to 31 December 2015  Unaudited	Group Six months to 31 December 2014 Unaudited	Group Year to 30 June  2015 Audited
		Note	£'000	£'000	£'000
Operating activities
Net cash from operating activities		6	(90)	404	456
			───────	───────	───────
Net cash generated/(used) in operating activities			(90)	404	456
			───────	───────	───────
Investing activities
Acquisition of intangible assets			(154)	(368)	(1,047)
Acquisition of plant and equipment			(81)	(77)	(78)
			───────	───────	───────
Net cash from financing activities			(235)	(445)	(1,125)
			───────	───────	───────
Financing activities
Issue of share capital			365	-	323
Finance costs			(18)	(4)	(40)
Increase in short term borrowing			-	-	320
Transactions with owners				49	-
			───────	───────	───────
Net cash from financing activities			347	45	603
			───────	───────	───────
Net cash outflow			22	4	(66)
Cash and cash equivalents at the beginning of the period			1	67	67
			───────	───────	───────
Cash and cash equivalents at the end of the period			23	71	1
			═══════	═══════	═══════

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 the Alternative Investment Market of 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 2015 were approved by the Board of Directors on 30 December 2015 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 2015 has not been reviewed or audited.  The interim financial report has been approved by the Board on 10 March 2016.

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 2015.

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 2015 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 2015 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 2015, 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 £334,000 (company's loss - 6 months to 31 December 2014 - £419,000; year ended 30 June 2015 - £572,000 and a basic and diluted weighted average number of ordinary shares of £0.001 each in issue of 712,212,949 (31 December 2014 - basic and diluted 657,499,452; 30 June 2015 - basic and diluted 673,897,325).

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

	Group Six months  to 31 December 2015  Unaudited	Group Six months to 31 December 2014 Unaudited	Group Year to 30 June  2015 Audited
	£'000s	£'000s	£'000s
Operating Loss for the period	(334)	(415)	(779)
Adjustments for :
(Increase)/Decrease in receivables	81	885	964
(Decrease)/Increase in payables	83	(77)	120
Depreciation	7	7	14
Interest paid	-	-	-
Income tax credit received	55	-	-
Finance expense	18	4	55
Shares issued in settlement of fees and debt	-	-	82
	───────	───────	───────
Net cash from operating activities	(90)	404	456
	═══════	═══════	═══════

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 2015	778,806,857		-		400,932
30 June 2015	701,147,289		-		400,932
31 December 2014	658,958,400		-		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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