TIDMAMTE
RNS Number : 0974T
AMTE Power PLC
23 March 2021
23 March 2021
AMTE POWER PLC
Interim Results
AMTE Power plc ("AMTE Power", the "Company" and together with
its subsidiary undertakings, the "Group"), a developer and
manufacturer of lithium-ion and sodium-ion battery cells for
specialist markets, announces half year results for the six months
to 31 December 2020.
Financial highlights
-- Revenue of GBP0.62 million for the six months to 31 December
2020 (H1 19/20: GBP0.58 million).
-- Loss before tax of GBP1.46 million for the period (H1 19/20:
loss GBP0.86 million), in line with management's expectations. The
rise in losses reflects increased investment in product
development, recruitment of key employees and marketing as the
Group moves towards commercialisation.
-- Cash and cash equivalents at 31 December 2020 of GBP0.22 million (H1 19/20: GBP0.60 million).
Operational highlights
-- Secured new commercial contracts and grant funding in support
of its product development work, winning ten new projects in the
period with an aggregate value of GBP1.9 million (H1 19/20: won ten
new projects with total value of GBP1.0 million). Seven of the ten
projects are expected to complete by 30 June 2021.
Post period end events
-- In February 2021, the Group signed a framework agreement with
UK Battery Industrialisation Centre ("UK BIC") enabling it to
access the cell manufacturing facility, test its manufacturing
processes for some of its battery cells, and materially expand its
production capacity.
-- Completed a successful IPO with admission to AIM on 12 March
2021 alongside an oversubscribed placing to new and existing
shareholders raising gross proceeds to the Group of GBP13.0
million.
Outlook
-- The Board believes that the full year outlook will be in line
with market expectations and that the level of income will continue
to grow through the second half of the year.
Kevin Brundish, CEO of AMTE Power said:
"We were very pleased by the response to our IPO from investors.
Joining the market has coincided with a period of significant
interest in our battery cells as governments globally look to
decarbonise their economies. The IPO has provided us with
sufficient capital to take our battery cells into production as we
respond to this growing interest."
For further information contact:
AMTE Power plc Tel: +44 (0)1847 867 200
Kevin Brundish (Chief Executive Officer)
Adam Westcott (Chief Financial Officer)
WH Ireland Limited (NOMAD and Joint Broker) Tel: +44 (0)207 220 1666
Chris Fielding / Matt Chan
SI Capital Limited (Joint Broker) Tel: +44 (0)1483 413 500
Nick Emerson / Nick Briers
Novella Communications Tel: +44 (0)203 151 7008
Tim Robertson / Fergus Young
Chief Executive's Statement
Introduction
We are pleased to make the following inaugural interim statement
for AMTE Power as a public company. The six months under review to
31 December 2020 was an important period for the business. In
November 2020 the UK Government set out its plan for a "Green
Industrial Revolution" in the UK, voicing the need to establish a
battery manufacturing base of scale in the UK and committing to
back UK based battery related product development. As a leading
developer and manufacturer of battery cells focussed on specialist
markets, combined with the visible acceleration in the global move
to decarbonisation and our recent successful IPO, means, we
believe, that we are well placed to achieve our commercial goals.
The next phase of our business is the continued product development
of our three highly differentiated battery cells through to product
release over the next three years.
During the period we invested in our sales and marketing team as
we saw increased interest in our product offerings. This increased
investment, along with the enhanced profile that the IPO has given
us, should elicit further engagements with new potential customers.
Our objective is to secure long-term engagements with clients who
are aligned with our timeline for when our products become
accredited and ready for volume production.
To be able to produce our battery cells at scale we need to
finalise the manufacturing processes which continued to be
developed in line with expectations through the period. The
Government established the UK BIC to help UK companies prove
whether their battery related technologies - from subcomponents
such as electrodes and cell materials through to full cells and
battery modules and packs - can be manufactured at the required
volume, speed, performance and cost, in order to be commercially
successful. To this end, the framework agreement we have with the
UK BIC was negotiated in the period and signed soon afterwards in
February 2021. This agreement will take us a long way towards our
volume production goals.
Alongside the product development, we continued to progress our
plans for a 'gigafactory' as part of the proposed expansion of our
production capability, developing our ability to meet the expected
customer demand for our products.
Operational overview
The value of potential sales in our pipeline continued to grow
throughout the period. A key driver of this growth has been the
interest being shown in our Ultra High Power and Ultra Energy cells
from specialised automotive manufacturers, resulting in a growing
number of engagements with end users.
We are delighted that progress under our development and supply
agreement with an equipment manufacturer within the oil and gas
sector continued in line with expectations. With the further work
completed in the period on our Ultra Prime product, our client
began to disclose further details on the demand profile expected
for this product.
We have always believed that Ultra Safe, aimed at the energy
storage market, whilst at an earlier stage than the other pipeline
products, has the greatest opportunity to be a transformational
product in the battery market place, given the significant
potential advantages it has over lithium-ion based battery cells as
a storage medium in terms of safety, efficacy and cost. We are
therefore delighted to say that we continue to make good progress,
in line with expectations, towards product release.
We are also seeing early demand opportunities for some of our
products outside of the UK, including India, Africa, and,
importantly, Australia where the Group has signed a Memorandum of
Understanding concerning the establishment of a joint venture with
InfraNomics (an Australian company which developed the strategy for
Lithium Valley, a substantial battery supply chain initiative in
Australia) to facilitate access for energy storage cells to that
market, which the Board perceives to be one of the world's most
active markets for such cells.
Financial results
Total income for the period was GBP0.62million (H1 19/20:
GBP0.58million), an increase of 7.8%. During the reporting period
we secured ten new projects with an aggregate value of GBP1.90
million, of which seven are due to finish by 30 June 2020. These
provide a significant increase in the growth trajectory of income
for the second half of the year.
The loss before tax for the period was GBP1.46 million (H1
19/20: loss GBP0.86 million). The primary driver of the rise in
losses was the Group's accelerated investment in its people,
including the expansion of its sales and business development team,
and the ongoing development of its products. The Group continues to
seek support for its development work from grant schemes such as
the UK's Faraday Challenge and funding bodies such as Innovate to
help support investment in product development. At 31 December
2020, the Group was active on live grant funded projects with a
total of GBP2.90 million of income remaining, which we expect to
recognise over multiple financial periods.
At 31 December 2020, the Group had cash and short-term deposits
of GBP0.22 million (H1 19/20: GBP0.61 million). The cash position
was further supplemented in early February 2021 with GBP0.25
million of funds attributable to the Group's R&D tax credit and
expenditure credit submissions for the period ended 30 June 2020.
The Group raised GBP11.33 million net of fees as part of its IPO on
AIM in March 2021.
Outlook
Following our successful IPO, the Group is in a strong financial
position. We continue to build opportunities across all of our core
markets. As at the end of February we had 80 active engagements on
a range of opportunities including commercial development and
product request opportunities as well as discussions to create
consortia to secure grant funding for focused projects aimed at
financing key work streams relating to our product development
work. We expect to continue to make good progress in all these
areas.
Consolidated statements of comprehensive income
Unaudited Unaudited Audited
6 months ended 6 months ended 15 months ended
31 December 31 December 30 June 2020
2020 2019
GBP GBP GBP
------------------------ ----------------------- -----------------------
Continuing operations
------------------------ ----------------------- -----------------------
Revenue 623,536 578,702 1,264,855
------------------------ ----------------------- -----------------------
Cost of sales (460,782) (537,554) (1,231,343)
------------------------ ----------------------- -----------------------
Gross profit 162,754 41,148 33,512
------------------------ ----------------------- -----------------------
Other income 88,356 125,977 199,760
------------------------ ----------------------- -----------------------
Administrative expenses (1,565,838) (942,170) (2,111,959)
------------------------ ----------------------- -----------------------
Operating loss (1,314,728) (775,045) (1,878,687)
------------------------ ----------------------- -----------------------
Finance income 1,169 8,204 16,741
------------------------ ----------------------- -----------------------
Finance expense (142,110) (89,771) (242,111)
------------------------ ----------------------- -----------------------
Loss before taxation (1,455,669) (856,612) (2,104,057)
------------------------ ----------------------- -----------------------
Taxation 45,926 154,000 222,271
------------------------ ----------------------- -----------------------
Loss and total comprehensive
loss for the period (1,409,743) (702,612) (1,881,786)
------------------------ ----------------------- -----------------------
Basic loss per share (GBP21.38) (GBP12.26) (GBP32.57)
------------------------ ----------------------- -----------------------
Diluted loss per share (GBP21.38) (GBP12.26) (GBP32.57)
------------------------ ----------------------- -----------------------
Consolidated statements of financial position
Note Unaudited Unaudited Audited
As at As at As at
31 December 31 December 30 June 2020
2020 2019
GBP GBP GBP
----- ------------------------- ------------------------- -------------------------
Non-current assets
----- ------------------------- ------------------------- -------------------------
Intangible assets 5 19,438,264 16,575,141 18,061,139
----- ------------------------- ------------------------- -------------------------
Property, plant and
equipment 6 1,104,329 1,156,842 1,165,179
----- ------------------------- ------------------------- -------------------------
Right-of-use assets 7 1,059,007 312,739 1,146,450
----- ------------------------- ------------------------- -------------------------
Investments 2 - 2
----- ------------------------- ------------------------- -------------------------
Total non-current assets 21,601,602 18,044,722 20,372,770
----- ------------------------- ------------------------- -------------------------
Current assets
----- ------------------------- ------------------------- -------------------------
Inventories 231,755 155,926 219,133
----- ------------------------- ------------------------- -------------------------
Trade and other receivables 1,151,471 1,086,716 889,120
----- ------------------------- ------------------------- -------------------------
Tax receivables 142,469 45,926 96,543
----- ------------------------- ------------------------- -------------------------
Receivables under sub-leases - - -
----- ------------------------- ------------------------- -------------------------
Cash and cash equivalents 221,218 607,122 949,569
----- ------------------------- ------------------------- -------------------------
Total current assets 1,746,913 1,895,690 2,154,365
----- ------------------------- ------------------------- -------------------------
Total assets 23,348,515 19,940,412 22,527,135
----- ------------------------- ------------------------- -------------------------
Current liabilities
----- ------------------------- ------------------------- -------------------------
Trade and other payables (1,011,228) (427,926) (610,042)
----- ------------------------- ------------------------- -------------------------
Borrowings (20,349) (19,276) (20,350)
----- ------------------------- ------------------------- -------------------------
Patent licence obligations (575,177) (411,043) (500,401)
----- ------------------------- ------------------------- -------------------------
Lease liabilities (114,060) (73,130) (106,316)
----- ------------------------- ------------------------- -------------------------
Deferred income (28,564) (24,327) (28,564)
----- ------------------------- ------------------------- -------------------------
Total current liabilities (1,749,378) (955,702) (1,265,673)
----- ------------------------- ------------------------- -------------------------
Non-current liabilities
----- ------------------------- ------------------------- -------------------------
Borrowings (85,509) (59,669) (95,216)
----- ------------------------- ------------------------- -------------------------
Patent licence obligations (15,184,713) (13,947,269) (14,595,655)
----- ------------------------- ------------------------- -------------------------
Lease liabilities (937,328) (172,476) (1,001,304)
----- ------------------------- ------------------------- -------------------------
Deferred income (2,178,862) (1,481,540) (1,898,091)
----- ------------------------- ------------------------- -------------------------
Provisions for dilapidations (208,687) (203,551) (208,309)
----- ------------------------- ------------------------- -------------------------
Total non-current liabilities (18,595,099) (15,864,505) (17,798,575)
----- ------------------------- ------------------------- -------------------------
Total liabilities (20,344,477) (16,820,207) (19,064,248)
----- ------------------------- ------------------------- -------------------------
Net assets 3,004,038 3,120,205 3,462,887
----- ------------------------- ------------------------- -------------------------
Equity
----- ------------------------- ------------------------- -------------------------
Share capital 336 302 321
----- ------------------------- ------------------------- -------------------------
Share premium 9,023,909 7,096,361 8,067,562
----- ------------------------- ------------------------- -------------------------
Share options reserve 122,584 104,130 128,052
----- ------------------------- ------------------------- -------------------------
Accumulated losses (6,142,791) (4,080,588) (4,733,048)
----- ------------------------- ------------------------- -------------------------
Total equity 3,004,038 3,120,205 3,462,887
----- ------------------------- ------------------------- -------------------------
Consolidated statements of changes in equity
Share Share premium Retained Share Total
capital deficit options
reserve
--------------- ---------------------- -------------------- -------------------- ------------------- ----------------
GBP GBP GBP GBP GBP
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 1
April
2019 267 5,092,139 (2,851,262) 62,446 2,303,590
---------------------- -------------------- -------------------- ------------------- ----------------
Share based
payments - - - 15,869 15,869
---------------------- -------------------- -------------------- ------------------- ----------------
Total
comprehensive
loss for the
period - - (526,714) - (526,714)
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 30
June
2019 267 5,092,139 (3,377,976) 78,315 1,792,745
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 1
July
2019 267 5,092,139 (3,377,976) 78,315 1,792,745
---------------------- -------------------- -------------------- ------------------- ----------------
Share based
payments - - - 25,815 25,815
---------------------- -------------------- -------------------- ------------------- ----------------
Issue of
shares (less
fundraising
costs) 35 2,004,222 - - 2,004,257
---------------------- -------------------- -------------------- ------------------- ----------------
Total
comprehensive
loss for the
period - - (702,612) - (702,612)
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 31
December
2019 302 7,096,361 (4,080,588) 104,130 3,120,205
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 1
January
2020 302 7,096,361 (4,080,588) 104,130 3,120,205
---------------------- -------------------- -------------------- ------------------- ----------------
Share based
payments - - - 23,922 23,922
---------------------- -------------------- -------------------- ------------------- ----------------
Issue of
shares (less
fundraising
costs) 19 971,201 - - 971,220
---------------------- -------------------- -------------------- ------------------- ----------------
Total
comprehensive
loss for the
period - - (652,460) - (652,460)
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 30
June
2020 321 8,067,562 (4,733,048) 128,052 3,462,887
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 1
July
2020 321 8,067,562 (4,733,048) 128,052 3,462,887
---------------------- -------------------- -------------------- ------------------- ----------------
Share based
payments - - - (5,468) (5,468)
---------------------- -------------------- -------------------- ------------------- ----------------
Issue of
shares (less
fundraising
costs) 15 956,347 - - 956,362
---------------------- -------------------- -------------------- ------------------- ----------------
Total
comprehensive
loss for the
period - - (1,409,743) - (1,409,743)
---------------------- -------------------- -------------------- ------------------- ----------------
Balance at 31
December
2020 336 9,023,909 (6,142,791) 122,584 3,004,038
---------------------- -------------------- -------------------- ------------------- ----------------
Consolidated statements of cash flows
Unaudited Unaudited Audited
6 months ended 6 months ended 15 months
ended
31 December 31 December 30 June 2020
2020 2019
Cash flow from operating GBP GBP GBP
activities
------------------------- ------------------------- ---------------------
Losses after taxation (1,409,743) (702,612) (1,881,786)
------------------------- ------------------------- ---------------------
Adjustments for non-cash
items 272,282 148,484 641,139
------------------------- ------------------------- ---------------------
Tax credits received 4,691 224,864 224,864
------------------------- ------------------------- ---------------------
Cash flow used in operating
activities before changes
in working capital (1,132,770) (329,264) (1,015,783)
------------------------- ------------------------- ---------------------
Change in working capital
------------------------- ------------------------- ---------------------
Change in inventories (12,622) (68,711) (196,217)
------------------------- ------------------------- ---------------------
Change in current receivables (272,396) (423,674) (209,243)
------------------------- ------------------------- ---------------------
Change in current non-interest
bearing liabilities 401,186 (519,971) 335,832
------------------------- ------------------------- ---------------------
Cash flow from/(used-in)
changes in working capital 116,168 (1,012,356) (69,628)
------------------------- ------------------------- ---------------------
Net cash flow used in
operating activities (1,016,602) (1,341,620) (1,085,411)
------------------------- ------------------------- ---------------------
Investing activities
------------------------- ------------------------- ---------------------
Intangible fixed asset
additions (546,618) (381,754) (1,055,027)
------------------------- ------------------------- ---------------------
Purchase of property,
plant and equipment (121,807) (145,384) (415,562)
------------------------- ------------------------- ---------------------
Investments - - (2)
------------------------- ------------------------- ---------------------
Repayment of sub-lease - 41,499 62,250
------------------------- ------------------------- ---------------------
Interest received 7,198 1,812 4,573
------------------------- ------------------------- ---------------------
Net cash used in investing
activities (661,227) (483,827) (1,403,768)
------------------------- ------------------------- ---------------------
Financing activities
------------------------- ------------------------- ---------------------
Proceeds from borrowings - 50,000 100,000
------------------------- ------------------------- ---------------------
Re-payment of borrowings (6,884) (5,627) (18,585)
------------------------- ------------------------- ---------------------
Proceeds on issue of
shares 956,362 2,004,256 2,975,477
------------------------- ------------------------- ---------------------
Cash flow from financing
activities 949,478 2,048,629 3,056,892
------------------------- ------------------------- ---------------------
Net change in cash and
cash equivalents (728,351) 223,182 567,713
------------------------- ------------------------- ---------------------
Cash and cash equivalents,
beginning of year 949,569 383,940 381,856
------------------------- ------------------------- ---------------------
Cash and cash equivalents,
end of year 221,218 607,122 949,569
------------------------- ------------------------- ---------------------
Cash and cash equivalents
for continuing operations 221,218 607,122 949,569
------------------------- ------------------------- ---------------------
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 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. Basis of preparation and significant accounting policies
(a) BASIS OF PREPARATION
The unaudited interim condensed consolidated financial
information of AMTE Power has been prepared in accordance with
international accounting standards (IAS) in conformity with the
requirements of the Companies Act.
The interim condensed consolidated financial information has
been prepared on the historical cost basis except for certain
financial instruments which are required to be measured at fair
value. The financial information has been prepared on a going
concern basis and is presented in Sterling.
The Group changed its year-end from 31 March to 30 June and the
period ended 30 June 2020 is the first financial reporting period
for the new year end date. The Group extended its reporting period
to allow it to complete certain changes to its policies and an
internal restructuring of the business ahead of the admission to
AIM, see Note 10. As a result, the period ended 30 June 2020 is a
15-month period. The audited consolidated numbers for that period
were as presented in the Group's Admission Document, as the
financial statements of the company were previously prepared under
FRS 102 and were unaudited. The Company changed its name from AMTE
Power Ltd. to AMTE Power plc on 3 March 2021.
(b) SIGNIFICANT ACCOUNTING POLICIES
Basis of consolidation
The unaudited interim condensed consolidated financial
information comprises the financial information of AMTE Power and
its subsidiaries. The subsidiaries are consolidated from the date
on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of
the Group. The results, assets and liabilities of associates are
accounted for under the equity method of accounting.
The accounting policies used in the preparation of the interim
condensed consolidated financial information are consistent with
those set out in the Group's Admission Document. The Group will
continue to review its accounting policies in the light of emerging
industry consensus on the practical application of IFRS.
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. Loss per share
The calculation of the basic loss per share is based upon the
net loss after tax attributable to ordinary shareholders and a
weighted average number of shares in issue for the year.
Unaudited Unaudited Audited 15
6 months 6 months months ended
ended ended
31 December 31 December 30 June 2020
2020 2019
GBP GBP GBP
Basic loss per share (GBP) (GBP21.38) (GBP12.26) (GBP32.57)
Diluted loss per share (GBP) (GBP21.38) (GBP12.26) (GBP32.57)
Loss attributable to equity
shareholders (1,409,743) (702,612) (1,881,786)
Weighted average number of
shares in issue 65,926 57,318 57,777
Diluted earnings per share
There are share options and warrants outstanding as at the end
of each period which, if exercised, would increase the number of
shares in issue. However, the diluted loss per share is the same as
the basic loss per share, as the loss for the year has an
antidilutive effect.
5. Intangible fixed assets
The Group's intangible fixed assets, which include Development
Battery Cells and IP Rights, had additions of GBP1,622,552 in the
six months to 31 December 2020 (six months to 31 December 2019:
GBP1,587,173; 15 months to 30 June 2020: GBP3,622,519).
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 were GBP245,427 (2019: GBP188,987; 15 months to 30 June
2020: GBP447,943) for the same periods above.
No impairments of intangible assets were made.
6. Property, plant and equipment
There were no significant movements on tangible fixed assts over
the period of the interim accounts.
7. 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 manufacturing
facility in Thurso,
-- The sub-lease has a duration of under 3 years.
Right-of-use assets include additions of GBPnil for the six
months to 31 December 2020 (six months to 31 December 2019:
GBP145,176; 15 months to 30 June 2020: GBP1,144,569). During the
six months to 30 June 2020 the Group ended a property lease with a
sub-lease which was fully written down. The charge for depreciation
was GBP87,441 (2019: GBP86,722; 2020: GBP110,723) for the same
periods above.
8. Principle risks
The risks anticipated by the Group have not changed from those
provided for in the Admission Document. These risks include:
Interest rate risks
The Group's activities expose it to the financial risks of
interest rates. The Group reviews its risk management strategy on a
regular basis and if appropriate it will enter into derivative
financial instruments in order to manage interest rate risk. At
present, the Group does not have any financial leases that have a
floating interest rate, however should it take on such facilities
where this is the case, then it will review the risk exposure it
has.
Foreign currency risks
The Group has limited exposure to transactional foreign currency
risk from trading transactions. The Group considers the need to
mitigate this exposure as and when appropriate and will enter into
forward foreign exchange contracts to mitigate any significant
risks. The Group also seeks to issue invoices to customers based in
Europe or USA in the respective currencies to provide a natural
hedge against a small portion of the Group's overall costs.
At present, the Group has taken out a forward contract on its US
dollar exposure of US$ 150,000.
Liquidity risk
Liquidity risk is the risk that the Group will encounter
difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or other financial
assets. The ability to do this relies on the Group expanding its
customer base, collecting its trade receivables, completing
financings in a timely manner and by maintaining sufficient cash
and cash equivalents on hand.
The Group monitors its payables on a periodic basis and uses the
credit terms to manage the timing of payments to suppliers.
Market Risk
Due to the development nature of the contracts and product
programmes that the Group enters into, currently it is not
materially exposed to a market directly. However, its products are
focused on meeting certain current or expected requirements of
individual markets, and these requirements could evolve before the
Group is able to complete its product development programmes.
The Group periodically reviews the markets, and demands expected
of products, to minimise the risk to its business. It is also
reviewing new markets to identify future demand outside of the
initial intended markets.
Once the Group has released products, then it will carry out an
assessment of the market risk it is exposed to and will carry out
sensitivity analysis on the impact that each risk will have on the
product(s)' performance and the wider impact on the Group's income
statement and its financial position.
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or customer contract,
leading to a financial loss.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses which uses a lifetime expected loss
allowance for all trade receivables and contract assets.
On an ongoing basis, trade receivable balances attributable to
each customer are monitored and appropriate action is taken to
follow up on those balances when they are considered overdue. In a
limited number of customer contracts, an initial payment is secured
which helps to mitigate the overall credit risk of a project.
Although the Group has its own terms and conditions with a
30-day payment expectation, under some contracts it accepts longer
terms with suitable customers. Should a trade debtor exceed the
payment terms, then the Group engages to ensure swift payment. Due
to the development nature of the contract, any payments that
continue to be delayed may result on discussions over the delivery
of the rest of the project. Should there be no engagement from the
customer for a period of time then a provision is made for the
amount outstanding.
9. Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
a. The condensed interim financial information has been prepared in accordance with IAS 34; and
b. The interim management report includes a fair review of the
information required by the FCA's Disclosure and Transparency Rules
(4.2.7 R and 4.2.8 R).
Financial statements are published on the Company's website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Company's website is the responsibility of the
Directors. The Directors' responsibility also extends to the
ongoing integrity of the financial statements contained
therein.
10. Events after the reporting period
The following events have taken place after 31 December
2020.
Capitalisation of Share Premium Account and Reduction of
Capital
On 20 January 2021, a sum of GBP134,548 standing to the
Company's share premium account was capitalised by the issue of
bonus shares, in the form of ordinary shares in the Company ("Bonus
Shares").
The Bonus Shares have been issued to Shareholders pro rata to
each shareholder's existing holding, such that each Shareholder has
received 400 Bonus Shares for each ordinary share held. The
proposed rights attaching to the Bonus Shares are identical to the
existing ordinary shares. Following the issue of Bonus Shares, the
total number of ordinary shares in issue was 26,976,874.
On 20 January 2021, the capital (consisting of the share capital
and share premium) of the Company was reduced so that the Company
would therefore satisfy the net assets criteria of the Companies
Act. This action has the effect of reducing the un-distributable
reserves, and therefore the capital, by GBP8,825,536.88 such that
the net assets of the Company are above the revised capital of the
Company, as required by the Act in order that the Company could
re-register as a public limited company.
Issue of Ordinary Shares
Following the reporting period, the Company issued 286,715
shares at par to David Morgan, Chair of the Group, on 20 January
2021.
Admission to AIM and Fundraise of GBP13.0m of gross
proceeds.
On 12 March 2021, the Company's shares were admitted to trading
on AIM, the market operated by the London Stock Exchange Plc. The
Company issued 7,402,438 shares at 175 pence per share, raising net
proceeds of GBP11,332,712.
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END
IR JTMRTMTATBBB
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Amte Power (LSE:AMTE)
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From Mar 2024 to Apr 2024
Amte Power (LSE:AMTE)
Historical Stock Chart
From Apr 2023 to Apr 2024
