Half-year Report for the 6 months to 30 Sep 2024

SulNOx Group PLC

30 December 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

 30 December 2024

SulNOx Group Plc (the "Company" or "SulNOx")

Half-Yearly Financial Report for the Six-Months to 30 September 2024

(Aquis Stock Exchange: SNOX)

The board of directors of the Company (the "Board") is pleased to announce the Company's interim financial report for the 6 months to 30 September 2024 (the "Period").  The financial statements for the Period can be viewed below.

Chairman's Statement

I am pleased to report another 6 months of improving performance with products sales and revenue growth in line with the Board's expectations.

The Board is delighted to report that year to date sales have increased 224.4% to £440.3k and volume of product sold has increased c.400%, compared to the same period in the prior year.  Recently, post-Period end, the Company secured additional funding which will be utilised to continue to shape our strategic priorities by enabling a larger product distribution network, an expanded pipeline, and the addition of new personnel to capitalize on SulNOx's existing momentum.  We are grateful that existing significant shareholders have added to their position including Constantine Logothetis, Nistadgruppen AS and Unicorn AIM VCT plc, along with investment from marine and international strategic partners, demonstrating their confidence in SulNOx's future potential.  Cash generation had been a key focus for the Board, and after the recent capital raise, we are pleased to see the expanded cash flow for the upcoming year that will buttress our ambitious sales targets. Our top priorities will be to continue to focus on sales in expanding geographic locations, and leverage repeat orders from existing land and maritime clients in Africa, Europe and Asia.

During the Period we have consolidated and strengthened our relationships with our existing clients, expanded the product pipeline and evaluations, and deepened our understanding on how to leverage SulNOx's product viability. With a renewed focus on adaptability and strategic planning through our key growth drivers; cost and organisational effectiveness, client diversification, focused sales team, and sustainability, we emerge stronger from 2024 as we continue to leverage on the progress we have made to date.  We are underway on new marketing efforts to communicate the product to a broader audience, further global stock locations, additional human resources, and a significant partnership to penetrate the U.S. market.  A large part of SulNOx's U.S. focus includes the recent investment by McQuilling Partners, Inc. and their appointment as our preferred partner to promote and sell SulNOx products in North America.  With their strong presence serving shipping, commodity, and renewables, we are confident of the opportunities ahead.  SulNOx continues to secure its patent footprint and recently announced new markets including Indonesia, Chile, Singapore, Japan and Saudi Arabia, to name a few.

Heading into the New Year, we will continue to maintain the flexibility to change and adapt as both global demands and changing legislation will certainly have an impact on fuel consumption. We are confident that with the existing and expanded team, we are well placed to meet these challenges moving forward.

I would like to thank all of SulNOx's employees and partners for their hard work and commitment throughout 2024, and to our shareholders for their continued support.  We are excited about our prospects and look forward to continued success in 2025.

- Ends -

For further information please contact:

SulNOx Group plc Steven Cowin, CFO	Tel: [phone]
Allenby Capital Limited (AQSE Corporate Adviser) Nick Harriss / John Depasquale	Tel: [phone]

SulNOx Group PLC
Consolidated Statement of Comprehensive income for the 6 months ended 30 September 2024
	Unaudited	Audited	Unaudited
	6 months to	year ended	6 months to
	30-Sep-24	31-Mar-24	30-Sep-23
	£	£	£
Revenue	440,327	544,120	135,727
Cost of sales	(244,767)	(373,651)	(78,701)
Gross profit	195,560	170,469	57,026
Administrative expenses	(1,391,385)	(2,052,948)	(926,840)
Operating loss	(1,195,824)	(1,882,479)	(869,814)
Interest receivable and similar income	24,935	25,878	-
Interest payable and similar expenses	-	(3,098)	-
Loss before taxation	(1,170,890)	(1,859,699)	(869,814)
Tax on Loss	-	-	-
Loss for the Period and total comprehensive income	(1,170,890)	(1,859,699)	(869,814)
Earnings per share (pence)	(0.96)	(1.66)	(0.83)

	Consolidated Statement of Financial Position as at 30 September 2024
				Unaudited			Audited			Unaudited
				30-Sep-24			31-Mar-24			30-Sep-23
				£			£			£
	Non-current assets
	Intangible assets			6,879,545			7,079,545			7,279,545
	Property, plant and equipment			38,504			42,995			13,925
				6,918,049			7,122,540			7,293,470
	Current assets
	Inventory			504,635			171,103			128,633
	Debtors			286,821			229,263			130,540
	Cash at bank and in hand			804,434			2,146,718			562,257
				1,595,890			2,547,084			821,430
	Creditors: amounts falling due within one year			(365,286)			(425,722)			(563,589)
	Net current assets			1,230,604			2,121,362			257,841
	Total assets less current liabilities			8,148,653			9,243,902			7,551,311
	Net assets			8,148,653			9,243,902			7,551,311
	Capital and reserves
	Called up share capital			2,431,019			2,426,936			2,176,228
	Share premium account			16,764,253			16,717,035			14,391,409
	Share based compensation reserve			412,002			387,662			588,959
	Profit and loss account			(11,458,621)			(10,287,731)			(9,605,285)
	Shareholders' funds			8,148,653			9,243,902			7,551,311
Consolidated Statement of Changes in Equity for the 6 months ended 30 September 2024
						Share
		Called	Share			Based
		Up Share	Premium			Compensation			Retained
		Capital	Account			Reserve			Earnings		Total
		£	£			£			£		£
Balance at 1 April 2023		2,018,831	13,911,991			588,959			(8,735,471)		7,784,310
Loss of total comprehensive income for the Period		-	-			-			(869,814)		(869,814)
Issue of share capital		157,397	479,418			-			-		636,815
Balance at 30 September 2023		2,176,228	14,391,409			588,959			(9,605,285)		7,551,311
Loss of total comprehensive income for the Period		-	-			-			(682,446)		(682,446)
Issue of share capital		250,708	2,325,626			-			-		2,576,334
Movement on reserve		-	-			(201,297)			-		(201,297)
Balance at 31 March 2024		2,426,936	16,717,035			387,662			(10,287,731)		9,243,902
Loss of total comprehensive income for the Period		-	-			-			(1,170,890)		(1,170,890)
Issue of share capital		4,083	47,218			-			-		51,301
Movement on reserve		-	-			24,340			-		24,340
Balance at 30 September 2024		2,431,019	16,764,253			412,002			(11,458,621)		8,148,653

Consolidated Cash Flows for the 6 months ended 30 September 2023
	Unaudited	Audited	Unaudited
	6 months to	year ended	6 months to
	30-Sep-24	31-Mar-24	30-Sep-23
	£	£	£
Cash flows from operating activities
Loss for the Period after tax	(1,170,890)	(1,859,699)	(869,814)
Adjustments for:
Amortisation and impairment of intangible assets	200,000	400,000	200,000
Depreciation and impairment of property, plant and equip	5,407	4,358	1,989
Share based equity payment	24,340	106,142	-
Movement in working Capital
(increase)/decrease in inventories	(333,532)	(92,031)	(49,561)
(increase)/decrease in trade and other receivables	(57,558)	(181,669)	(82,946)
Increase/(decrease) in trade and other payables	(60,436)	65,039	202,906
Cash generated from operations	(1,392,669)	(1,557,860)	(597,426)
Net cash from operating activities	(1,396,669)	(1,557,860)	(597,426)
Cash flows from investing activities
Purchase of tangible assets	(916)	(31,439)	-
Net cash from investing activities	(916)	(31,439)	-
Cash flows from financing activities
Proceeds from issue of shares	51,301	3,213,149	636,815
Net cash from financing activities	51,301	3,213,149	636,815
Net increase/(decrease) in cash and cash equivalents	(1,342,284)	1,623,850	39,389
Cash and cash equivalents at beginning of the Period	2,146,718	522,868	522,868
Cash and cash equivalents at end of the Period	804,434	2,146,718	562,257

 

END