Interim results for the six months

RNS Number : 0473F

Enteq Upstream PLC

12 November 2020

 

Enteq Upstream plc

Interim results for the six months ended 30 September 2020

AIM traded Enteq Upstream plc ("Enteq", the "Company" or the "Group"), the energy services technology and equipment supplier, today announces its interim results for the six months ended 30 September 2020.

Key Highlights

· International revenue share increased to 74%. (September 2019: 42%)

· Growth in revenue from China; new deployments in Middle East

· Challenging market conditions in North America

· Cash balance of $8.8m at 30 September 2020 (March 2020: $10.2m)

· Focused investment and value creation in innovative technology development

· Board succession plan in place

Financial metrics 

	6 Months ended 30 September:
	2020	2019
	US$m	US$m
· Revenue	2.6	6.5
· Adjusted EBITDA1	0.1	1.5
· Post tax loss for the period	0.7	0.5
· Adjusted loss per share (cents) 2	0. 5	0. 4
· Cash balance	8.8	10.7

Outlook

· North American drilling market likely to remain subdued for medium term

· Markets outside USA show increasing demand for Enteq equipment

· New technology will greatly expand Enteq's addressable market

· Value creation from new technologies as milestones are met

· Continuing strong balance sheet enables on-going investment

Martin Perry, CEO of Enteq Upstream plc, commented:

"2020 has dramatically changed the market for Enteq. The USA land shale drilling market has significantly reduced with on-going over capacity likely. Outside North America, despite the effects of oil price uncertainties and COVID-19, Enteq has succeeded in developing a strong customer base in China and the Middle East with good further opportunities. New technology will drive the efficiency of future drilling in all markets, and Enteq has some exciting product release plans which have the potential to change the scale of our business.

A rapid response to the market challenges through reducing overheads whilst maintaining investment in our new product engineering has given Enteq stability, supported by a secure cash balance.

As of 1 April 2021, I have elected to step down from the CEO role, and take up the position of Non-Executive Chairman. I am delighted to congratulate Andrew Law (currently Commercial Director) on his planned appointment as CEO. Andrew has significant experience in the industry, strategy and finance, and will continue to drive our new technologies and new market penetration. I look forward to supporting him with this and with an on-going drive to achieve incremental growth opportunities."

For further information, please contact:

Enteq Upstream plc   [phone]

Martin Perry, Chief Executive Officer

David Steel, Finance Director

Investec Bank plc (Nomad and Broker)   [phone]

Chris Sim, Patrick Robb, David Anderson

¹ Adjusted EBITDA is reported profit before tax adjusted for interest, depreciation, amortisation, foreign exchange movements, performance share plan charges and exceptional items.

² Adjusted earnings per share is reported profit per share adjusted for foreign exchange movements, amortisation, performance share plan charges and exceptional items .

 

Interim Report

CHAIRMAN & CHIEF EXECUTIVE OFFICER'S REPORT

Overview

Enteq Upstream supplies Measurement While Drilling (MWD) technologies and equipment to companies in the energy services sector. The equipment enables the well-bore to be accurately positioned and assists in optimising the efficiency of drilling operations.

The six-month reporting period ended 30 September 2020 was dominated by both the ongoing impact of the mid-March 2020 oil price slump and the effects of the COVID-19 pandemic. The price of a barrel of West Texas Intermediate Crude oil ("WTI") fell to $16 per barrel during April 2020 and has since recovered to around $40, having previously averaged $57 for the year to 31 March 2020.  The number of active drilling rigs in North America started the period at 664 (31 March 2019: 1,028) before falling by around 60% to 263 at the end of June 2020. Since then the number has remained stable, ending this reporting period at 266.

As a result of the oil price drop and dramatic drilling rig reduction, Enteq's revenue derived from North America has fallen to approximately $0.7m ($3.8m to September 2019).  During the period, a significant number of the equipment on rental in North America reached the end of its full rental term, with legal title passing to the renter.  In addition, a number of kits came off rental and were placed back in inventory at their appropriately depreciated values. 

International revenue (sales outside North America), at $1.9m, represents 74% of total revenue, compared to approximately 30% in the previous full year period ($3.2m) and 42% in equivalent period ending September 2019 ($2.8m). New customers in China represent 70% of the period's international sales. Enteq's success in China is due to the strategic demand for gas from wells which are drilled in harsh and high temperature conditions, where Enteq's proven reputation for reliable and technically advanced technology provides customer confidence.  Equipment has also been ordered and delivered to Enteq's new strategic partner in Saudi Arabia who is currently undergoing the final stages of accreditation with Saudi Aramco.  When this process is successful, the ownership of this equipment will transfer and Enteq will recognise the revenue with the expectation of a medium-to-long term supply contract being awarded to our partner.  The outcome of the accreditation is expected to be known before the end of March 2021.

Technology Update

Enteq continues to invest in the re-engineering and commercialisation of the Rotary Steerable System ("SRSS") development program licensed from Shell in September 2019. The project has continued to meet the required technical and market milestones, with prototype deployment and field trials scheduled for 2021. This product range will enable Enteq to enter the Rotary Steerable Drilling service market which has an estimated world-wide annual value of $1.7bn in 2020, of which approximately 40% is accessible by the SRSS technology.  This compares to an approximately $100m addressable market for Enteq's current MWD products. As at 30 September 2020, Enteq has invested $0.6m in the system and expects to invest approximately $2.0m over the next two years to bring the product to market.

Further investment in a high-speed data transmission project, a key requirement for the optimisation and efficiency of drilling in the future energy industry, has been continued with a partner in Poland, where initial phases of surface prototype proving have been successfully completed.

The combination of existing Enteq Measurement While Drilling technology, the novel Rotary Steerable solution, high-speed telemetry and integration with further third-party sensors will provide the core of a focused Geosteering strategy for Enteq.

Operations

The core engineering, manufacturing and distribution functions continue to operate from the Enteq owned facility in South Houston, Texas, with additional contract engineering, in particular for the SRSS project, carried out in the UK.

In response to the dramatic mid-March 2020 downturn in the oil price and drilling activity, substantial overhead and headcount reductions were made in Houston and some non-core engineering staff furloughed in the UK. The core skill sets required to support customers, maintain quality and complete international deliveries of equipment have been maintained. Investment has continued in the internal and contract engineering for strategic projects. In April 2020 Raymond Garcia, a co-founder of Enteq and President /COO in USA, left the company.

Board Succession Plan

On 29 September 2020 Andrew Law was appointed to the Board of Directors, as Commercial Director.  Andrew joined Enteq on 2 January 2019 as Director of International Sales, a non-Board appointment.  Initially Andrew's focus was on expanding Enteq's market share outside North America and since March 2020 Andrew has additionally taken responsibility for Enteq's worldwide sales and fulfilment functions.

As set out in a separate announcement, the Board has today announced its orderly succession plan that will enable and support the delivery of a focused strategy for technology innovation and earnings growth in a consolidating sector.

As of 1 April 2021, Andrew Law, currently the Commercial Director, will become the Chief Executive Officer (CEO). Martin Perry, who is currently the CEO and a founding shareholder, will become the Non-executive Chairman. Neil Hartley will assume the role of Senior Independent Director. Iain Paterson, the current Chairman, will continue as a Non-executive Director.  David Steel continues to serve on the Board with the new title of Chief Financial Officer.

 

Overview of results

The half year revenue of US$2.6m represents a reduction of 60% over the US$6.5m for the first half of last year and a 40% fall over the previous half year.

The above reductions reflect the severe impact on overall demand resulting from the mid-March 2020 oil price slump and the effects of COVID-19.

The North American market remains extremely subdued with the number of active drilling rigs continuing to fall from 664 at the start of April 2020 to 266 at the end of September 2020, with resulting over capacity of equipment in the market.

The international customer base for Enteq has grown significantly in the last six months, primarily through expanding market share in China. The international market represents 74% of the first half year revenue (September 2019: 42%; Full year to March 2020: 30%) with China representing 71% of the total international revenue (September 2019: 39%; Full year to March 2020: 29%).

Revenue from the sale of full kits, primarily into China, was $1.3m, an increase from $0.6m in the equivalent period to September 2019. The equipment rental market revenue continues be a significant part of the first half revenue, even though reducing in absolute terms due to the lack of opportunity to replace kits that come to the end of their rental period. Rental revenue of $0.9m was 33% of the first half total, down from $2.6m in the six months to September 2019 (40%).

The reported gross margin of 60% earned in the first half of this year was up on the 55% achieved for the six months to 30 September 2019.  This was primarily due to the product mix, including a higher proportion of the high margin rental revenue.

In the six months ended 30 September 2020, administrative expenses before amortisation, depreciation and long-term incentive scheme charges were US$1.5m, down from the $2.1m in the six months to September 2019.  This was primarily due to the cost cutting measures made in response to the market down turn seen in mid-March 2020, primarily in headcount, but across all other areas of overhead spend. 

The adjusted EBITDA profit in the period was US$0.1m. Despite being down from the $1.5m in the equivalent period last year, achieving a positive EBITDA during a period of severe reduction in overall demand was pleasing. A reconciliation between the reported loss and the adjusted EBITDA is shown in note 5 to the Financial Statements below.

Cash balance and cashflow

As at 30 September 2020 the Group had a cash balance of US$8.8m, down US$1.4m over the figure as at 31 March 2020. 

The half year cash movement can be analysed as follows:

	US$m
Adjusted EBITDA	0.1
Change in trade and other receivables	0.2
Change in trade and other payables	(0.9)
Change in inventory	0.2
Operational cashflow	(0.4)
Increase in the rental/demo fleet	(0.6)
R&D expenditure	(0.5)
Other items	0.1
Net cash movement	(1.4)
Cash balances as at 1 April 2020	10.2
Cash balances as at 30 September 2020	8.8

Out of the net $0.5m change in working capital, $0.1m related to settling fees associated with potential acquisitions.  The majority of the increase in the rental/demo fleet relates to the new partner in Saudi Arabia. The related revenue will only be recognised by Enteq when the equipment completes the Saudi Aramco accreditation process; this is expected to be before the end of March 2021. 

The R&D expenditure was predominately on the Rotary Steerable System development program that includes elements licensed from Shell which continues to meet the project milestones, with prototype deployment scheduled for 2021.

Martin Perry  Iain Paterson

Chief Executive  Chairman

Enteq Upstream plc

11 November 2020
 

Enteq Upstream plc
Condensed Consolidated Income Statement
			Six months to 30 September 2020	Six months to 30 September 2019	Year to 31 March 2020
			Unaudited	Unaudited	Audited
	Notes		US$ 000's	US$ 000's	US$ 000's
Revenue			2,596	6,546	10,903
Cost of Sales			(1,029)	(2,950)	(4,256)
Gross Profit			1,567	3,596	6,647
Administrative expenses before amortisation			(1,998)	(4,020)	(7,269)
Amortisation of acquired intangibles	10b		-	(148)	(217)
Other exceptional items	6		(420)	(2)	(7,286)
Foreign exchange (loss)/gain on operating activities			46	(25)	37
Total Administrative expenses			(2,372)	(4,195)	(14,735)
Operating loss			(805)	(599)	(8,088)
Finance income			46	142	250
Loss before tax			(759)	(457)	(7,838)
Tax expense	9		29	-	-
Loss for the period	5		(730)	(457)	(7,838)
Loss attributable to:
Owners of the parent			(730)	(457)	(7,838)
Earnings/loss per share (in US cents):	8
Basic			(1.1)	(0.7)	(12.1)
Diluted			(1.1)	(0.7)	(12.1)

Condensed Consolidated Statement of Comprehensive Income
		Six months to 30 September 2020	Six months to 30 September 2019	Year to 31 March 2020
		Unaudited	Unaudited	Audited
		US$ 000's	US$ 000's	US$ 000's
Loss for the period		(730)	(351)	(7,838)
Other comprehensive income for the period:
Items that will not be reclassified subsequently to profit or loss		-	-	-
Items that will be reclassified subsequently to profit or loss		-	-	-
Total comprehensive income for the period		(730)	(351)	(7,838)
Total comprehensive income attributable to:
Owners of the parent		(730)	(351)	(7,838)

 

Enteq Upstream plc
Condensed Statement of Financial Position
		30 September 2020	30 September 2019	31 March 2020
		Unaudited	Unaudited	Audited
	Notes	US$ 000's	US$ 000's	US$ 000's
Assets
Non-current
Goodwill	10a	-	-	-
Intangible assets	10b	665	2,940	134
Property, plant and equipment		2,394	2,487	3,433
Rental fleet		854	2,489	-
Non-current assets		3,913	7,916	3,567
Current
Trade and other receivables		1,617	2,347	2,025
Inventories		2,790	5,301	3,110
Cash and cash equivalents		8,827	10,662	10,183
Current assets		13,234	18,310	15,318
Total assets		17,147	26,226	18,885
Equity and liabilities
Equity
Share capital	11	1,051	1,027	1,027
Share premium		91,724	91,579	91,579
Share based payment reserve		751	867	1,048
Retained earnings		(77,673)	(69,562)	(76,943)
Total equity		15,853	23,911	16,711
Liabilities
Current
Trade and other payables		1,294	2,315	2,174
Total equity and liabilities		17,147	26,226	18,885

 

Enteq Upstream plc
Condensed Consolidated Statement of Changes in Equity Six months to 30 September 2020
				Share
	Called up	Profit		based
	share	and loss	Share	payment	Total
	capital	account	premium	reserve	equity
	US$ 000's	US$ 000's	US$ 000's	US$ 000's	US$ 000's
Issue of share capital	24	-	145	-	169
Share based payment charge	-	-	-	(297)	(297)
Transactions with owners	24	-	145	(297)	(128)
Loss for the period	-	(730)	-	-	(730)
Total comprehensive income	-	(730)	-	-	(730)
Movement in period:	24	(730)	145	(297)	(858)
As at 1 April 2020 (audited)	1,027	(76,943)	91,579	1,048	16,711
As at 30 September 2020 (unaudited)	1,051	(77,673)	91,724	751	15,853

Six months to 30 September 2019
				Share
	Called up	Profit		based
	share	and loss	Share	payment	Total
	capital	account	premium	reserve	equity
	US$ 000's	US$ 000's	US$ 000's	US$ 000's	US$ 000's
Issue of share capital	22	-	181	-	203
Share based payment charge	-	-	-	117	117
Transactions with owners	22	-	181	117	320
Loss for the period	-	(457)	-	-	(457)
Total comprehensive income	-	(457)	-	-	(457)
Movement in period:	22	(457)	181	117	(137)
As at 1 April 2019 (audited)	1,005	(69,105)	91,398	750	24,048
As at 30 September 2019 (unaudited)	1,027	(69,562)	91,579	867	23,911

Enteq Upstream plc
Condensed Consolidated Statement of Cash flows
			Six months to 30 September 2020	Six months to 30 September 2019	Year to 31 March 2020
			Unaudited	Unaudited	Audited
			US$ 000's	US$ 000's	US$ 000's
Cash flows from operating activities
Loss for the period			(730)	(457)	(7,838)
Tax credit			(29)	-	-
Net finance income			(46)	(142)	(250)
Share-based payment non-cash charges			(297)	116	298
Impact of foreign exchange movement			(46)	25	(37)
Depreciation ,amortisation and exceptional charges			820	1,934	7,822
			(328)	1,476	(5)
(Increase)/decrease in inventory			321	(787)	1,402
Decrease/(increase) in trade and other receivables			409	5	329
(Decrease)/increase in trade and other payables			(851)	(720)	(863)
Net cash from operating activities			(449)	(26)	863
Investing activities
Purchase of tangible fixed assets			(18)	(127)	(208)
Increase in rental fleet assets			(618)	(743)	(742)
Purchase of intangible fixed assets			(531)	(693)	(2,150)
Interest received			46	142	250
Net cash from investing activities			(1,121)	(1,421)	(2,850)
Financing activities
Share issue			168	204	203
Net cash from financing activities			168	203	203
Increase/(decrease) in cash and cash equivalents			(1,402)	(1,243)	(1,784)
Non-cash movements - foreign exchange			46	(25)	37
Cash and cash equivalents at beginning of period			10,183	11,930	11,930
Cash and cash equivalents at end of period			8,827	10,662	10,183

 

ENTEQ UPSTREAM PLC

NOTES TO THE FINANCIAL STATEMENTS

For the six months to 30 September 2020

1.  Reporting entity

Enteq Upstream plc ("the Company") is a public limited company incorporated and domiciled in England and Wales (registration number 07590845).  The Company's registered address is The Courtyard, High Street, Ascot, Berkshire, SL5 7HP.

The Company's ordinary shares are traded on the AIM market of The London Stock Exchange. 

Both the Company and its subsidiaries (together referred to as the "Group") are focused on the provision of specialist products and technologies to the upstream oil and gas services market.

2.  General information and basis of preparation

The information for the period ended 30 September 2020 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the period ended 31 March 2020 has been delivered to the Registrar of Companies. The auditors have reported on these accounts; their reports were unqualified, but did draw attention to the uncertainty regarding the carrying value of the inventory by way of emphasis without qualifying their report and did not contain statements under s498(2) or (3) Companies Act 2006

The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

The Group's consolidated interim financial statements are presented in US Dollars (US$), which is also the functional currency of the parent company. These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of directors on 11 November 2020.

This half-yearly financial report has not been audited, and has not been formally reviewed by auditors under the Auditing Practices Board guidance in ISRE 2410.

3.  Accounting policies

The interim financial statements have been prepared on the basis of the accounting policies and methods of computation applicable for the period ended 31 March 2020. These accounting policies are consistent with those applied in the preparation of the accounts for the period ended 31 March 2020.

4.  Estimates

When preparing the interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results. The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last annual financial statements for the year ended 31 March 2020.

5.  Adjusted earnings and adjusted EBITDA

The following analysis illustrates the performance of the Group's activities, and reconciles the Group's loss, as shown in the condensed consolidated interim income statement, to adjusted earnings.  Adjusted earnings are presented to provide a better indication of overall financial performance and to reflect how the business is managed and measured on a day-today basis.  Adjusted earnings before interest, taxation, depreciation and amortisation ("adjusted EBITDA") is also presented as it is a key performance indicator used by management.

	Six months to 30 September 2020	Six months to 30 September 2019	Year to 31 March 2020
	US$ 000's	US$ 000's	US$ 000's
	Unaudited	Unaudited	Audited
Loss attributable to ordinary shareholders	(730)	(457)	(7,838)
Exceptional items	420	2	7,286
Amortisation of acquired intangible assets	-	147	217
Foreign exchange movements	(46)	25	(37)
Adjusted earnings	(356)	(283)	(372)
Depreciation charge	820	1,787	3,412
Finance income	(46)	(142)	(250)
PSP credit/(charge)	(302)	114	298
Tax credit	(29)	-	-
Adjusted EBITDA	87	1,476	3,088

6.  Exceptional items

The exceptional items can be analysed as follows:

	Six months to 30 September 2020	Six months to 30 September 2019	Year to 31 March 2020
	US$ 000's	US$ 000's	US$ 000's
	Unaudited	Unaudited	Audited
Write down of intangible assets	-	-	4,192
Write down of inventory	-	-	2,700
Severance payments	363	-	98
Aborted project costs incurred	57	-	296
Other	-	2	-
Adjusted earnings	420	2	7,286

7.  Segmental Reporting

For management purposes, the Group is currently organised into a single business unit, the Drilling Division, which is based, operationally, solely in the USA.

The principal activities of the Drilling Division are the design, manufacture and selling of specialised products and technologies for Directional Drilling and Measurement While Drilling operations used in the energy exploration and services sector of the oil and gas industry.

 

At present, there is only one operating segment and the information presented to the Board is consistent with the consolidated income statement and the consolidated statement of financial position.

The net assets of the Group by geographic location (post-consolidation adjustments) are as follows:

Net Assets	30 September 2020	30 September 2019	31 March 2020
	US$ 000's	US$ 000's	US$ 000's
	Unaudited	Unaudited	Audited
Europe (UK)	7,768	14,086	8,712
United States	8,085	9,825	7,999
Total Net Assets	15,853	23,911	16,711

The net assets in Europe (UK) are represented, primarily, by cash balances denominated in US$.

8.  Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing the loss attributable to ordinary shareholders for the six months of US$730,400 (September 2019: loss of US$457,400) by the weighted average number of ordinary shares in issue during the period of 66,452,000 (September 2019: 65,488,000).

Adjusted earnings per share

Adjusted earnings per share is calculated by dividing the adjusted earnings loss for the six months of US$356,000 (September 2019: loss of US$283,400), by the weighted average number of ordinary shares in issue during the period of 66,452,000 (September 2019: 65,488,000).

The adjusted diluted earnings per share information are considered to provide a fairer representation of the Group's trading performance.

A reconciliation between basic earnings and adjusted earnings is shown in Note 5.

As the Group is loss making, any potential ordinary shares have the effect of being anti-dilutive. Therefore, the diluted EPS is the same as the basic EPS. As the share price, as at 30 September 2020, was below the weighted average option price of all the options issued, the adjusted diluted EPS the same as adjusted EPS.

9.  Income Tax

No tax liability arose on ordinary activities for the six months under review.  The tax credit of $29,000 relates to the receipt of UK R&D tax reclaimed.

10.  Intangible Fixed Assets

a)  Goodwill

	US$ 000's
Cost:
As at 30 September 2020 and 1 April 2020	19,619
Impairment:
As at 30 September 2020 and 1 April 2020	(19,619)
Net Book Value:
As at 30 September 2020 and 1 April 2020	-

b)  Other Intangible Fixed Assets

	Developed technology	IPR&D technology	Brand names	Customer relationships	Non- compete agreements	Total
	US$ 000's	US$ 000's	US$ 000's	US$ 000's	US$ 000's	US$ 000's
Cost:
As at 1 April 2020	12,823	11,454	1,240	20,586	5,931	52,034
Capitalised in period	-	531	-	-	-	531
As at 30 September 2020	12,823	11,985	1,240	20,586	5,931	52.565
Amortisation:
As at 1 April 2020	12,823	11,320	1,240	20,586	5,931	51,900
Charge for the period	-	-	-	-	-	-
As at 30 September 2020	12,823	11,320	1,240	20,586	5,931	51,900
Net Book Value:
As at 1 April 2020	-	134	-	-	-	134
As at 30 September 2020	-	665	-	-	-	665

The main categories of Intangible Fixed Assets are as follows:

Developed technology:

This is technology which is currently commercialised and embedded within the current product offering.

IPR&D technology:

This is technology which is in the final stages of field testing, has demonstrable commercial value and is expected to be launched in the foreseeable future.

Brand names:

The value associated with various trading names used within the Group.

Customer relationships:

The value associated with the on-going trading relationships with the key customers acquired.

Non-compete agreements:

The value associated with the agreements signed by the Vendors of the acquired businesses not to compete in the markets of the businesses acquired.

 

11.  Share capital

Share capital as at 30 September 2020 amounted to US$1,051,000 (31 March 2020 and 30 September 2019: US$1,027,000).

12.  Going concern

The Directors have carried out a review of the Group's financial position and cash flow forecasts for the next 12 months by way of a review of whether the Group satisfies the going concern tests. These have been based on a comprehensive review of revenue, expenditure and cash flows, taking into account specific business risks and the current economic environment. With regards to the Group's financial position, it had cash and cash equivalents at 30 September 2020 of US$8.8 million.

The impact of both COVID-19 and the significant deterioration in the oil and gas drilling market, particular in North America have been fully factored into various financial scenarios relating to future trading.  The output of this modelling demonstrates that even in the case of a significant reduction in revenue the corresponding cost reduction measures and reduction in CAPEX and development spend will enable  the Group to retain significant cash balances in both the near and medium term. 

The uncertainty as to the future impact on the Group of the recent Covid-19 outbreak in particular has been considered as part of the Group's adoption of the going concern basis.  To date, we have not observed any material impact on our activities due to Covid-19 over and above that of the significant reduction in the North America rig count since the start of March 2020 and, indeed, the recently announced $1.0m contract award in China demonstrates the robustness of the post Covid-19 oil and gas drilling market in that country.

Having taken the above into consideration the Directors have reached a conclusion that the Group is well placed to manage its business risks in the current economic environment. Accordingly, they continue to adopt the going concern basis in preparing the Interim Condensed Financial Statements.

13.  Principal risks and uncertainties

Further detail concerning the principal risks affecting the business activities of the Group is detailed on pages 10 and 11 of the Annual Report and Accounts for the period ended 31 March 2020.  Consideration has been given to whether there have been any changes to the risks and uncertainties previously reported.  None have been identified.

14.  Events after the balance sheet date

There have been no material events subsequent to the end of the interim reporting period ended 30 September 2020.

15.  Copies of the interim results

Copies of the interim results are available from the Group's website at www.enteq.com.

 

END

 

 

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