TIDMAURR
RNS Number : 6481Z
Aurrigo International PLC
17 May 2023
17 May 2023
Aurrigo International plc
Full year results for year ended 31 December 2022
Good progress since IPO - foundations laid for future growth
Aurrigo International plc (AIM: AURR, the "Company" or
"Aurrigo"), a leading international provider of transport
technology solutions, reports its full year results for the year
ended 31 December 2022.
Highlights
-- Autonomous and Aviation division signed multi-year partnering
agreement with Changi Airport Group (Singapore) Pte Ltd ('CAG') for
continued joint development of Auto-Dolly, Auto-DollyTug and
Auto-Sim
-- Automotive division also saw good activity levels,
particularly amongst new potential customers
-- Headcount increased at all levels, expanding the team from 50
at IPO to 78 as at end April 2023
-- Established full-time teams in North America and Singapore offices
-- Continued investment in R&D, with the development of the
Auto-Dolly MK3 and Auto-DollyTug MK3
-- Continued IP generation with patents granted
-- Revenues of GBP5.3m, with Adjusted EBITDA loss of GBP0.9m
-- Cash of GBP5.4m at period end, strong cost controls in place
Outlook
-- Momentum of 2022 continuing into 2023, with industry
partnerships and grant-funded projects signed in Autonomous and
Aviation and good customer traction across Automotive
-- Investment in sales and marketing, alongside the CAG
partnership, resulting in encouraging potential customer engagement
globally
-- Rapid recovery of global aviation to almost pre-pandemic
levels, with demand for better efficiencies and solutions for staff
shortages, underpins Aurrigo's key growth drivers
-- In a strong position to continue to deliver on the
opportunities presented at IPO, particularly in Aviation
David Keene, CEO of Aurrigo, commented:
"We delivered an exciting year of progress in 2022 with the IPO,
fundraising and partnership agreement with Changi Airport Group
laying the foundations for our future growth. Since joining AIM, we
have scaled our team, developed new vehicles and are now rapidly
building a leadership position in autonomous aviation
solutions."
"The momentum of 2022 has continued into 2023. We are now
demonstrating and proving our autonomous aviation products on the
ground which we believe will translate into new long-term
partnerships."
"With the rapid recovery of the global aviation industry driving
the need for efficiencies and automation, we are well positioned to
continue to deliver the growth outlined at IPO."
For further enquiries:
Aurrigo International plc
David Keene, Chief Executive Officer
Ian Grubb, Chief Financial Officer +44 (0)2476 635818
Singer Capital Markets (Nominated Adviser
and Sole Broker)
Phil Davies, Rick Thompson, George Tzimas,
Jalini Kalaravy +44 (0)20 7496 3000
Instinctif Partners (Financial Communications) +44 (0)20 7457 2020
Rozi Morris, Tim McCall, Isadora Pegler aurrigo@instinctif.com
About Aurrigo
Aurrigo is a leading international provider of transport
technology solutions. Listed on the London Stock Exchange's AIM
Market (AIM: AURR) and headquartered in Coventry, UK, it designs,
engineers, manufactures and supplies OEM products and autonomous
vehicles to the automotive and transport industries. It is highly
regarded as a specialist in autonomous and semi-autonomous
technology solutions for the aviation, ground handling and cargo
industries.
Aurrigo has three divisions, Automotive Technology, Autonomous
Technology and Aviation Technology. For more information, see
www.aurrigo.com
CHAIR'S STATEMENT
I am delighted and privileged to present Aurrigo International
plc's maiden full year results as a public company following our
successful IPO on AIM in September 2022. It is also my first as
Chair, since joining Aurrigo as an adviser in 2021.
Our IPO has already begun to deliver a number of strategic
benefits to the Company, supporting our investment in product
development and expanding our team to pursue new market
opportunities. We begin life as a public company in a position of
financial strength - delivering revenues in line with expectations
of GBP5.3m, with a robust balance sheet and a solid cash position.
As a quoted company, we operate with a high level of integrity,
transparency and strong governance that we know our investors,
customers, partners and colleagues value.
Key achievements
The biggest achievement of the year was our successful IPO and
fundraise in what were very challenging market conditions - a real
testament to the great technology, sound business and talented team
we have at Aurrigo, combined with a passion to succeed from the
senior leadership team. It gives us a solid platform for growth and
the whole team are proud to now be delivering on what we set out at
IPO.
With the funding in place, Aurrigo is in a great position to
deliver on our planned projects and opportunities, particularly in
the aviation space, introducing autonomous solutions which can
improve efficiencies, staffing shortages and sustainability for
airport operations globally.
Building on this, in October 2022, we announced an agreement
with Changi Airport Group (Singapore) Pte Ltd (CAG), for the next
phase of development of the Auto-Dolly, and post period end, in
February 2023, we signed a formal partnership with CAG for the
joint development and testing of our autonomous vehicles and our
airport simulation software. This is a great platform from which to
engage not only CAG, but other airports and airlines and we look
forward to further opportunities arising from this.
Financial
Following our fundraise, Aurrigo is well capitalised for its
current needs, with a cash balance of GBP5.4m at period end and
delivering GBP5.3m of revenues, with an Adjusted EBITDA loss of
GBP0.9m. We continue to efficiently manage costs whilst also
exploring non-dilutive funding for some projects, particularly
grant funding.
Our people
2022 was a year for ensuring solid foundations for future growth
at Aurrigo, with our culture, values purpose and people a key
focus.
Since IPO, Aurrigo has been able to grow its dedicated and
experienced team, expanding its personnel from 50 at IPO to 78 as
at the end of April 2023, with the aim and need of reaching around
100 staff by the end of 2023. We have particularly expanded our
sales, marketing and engineering capabilities, together with senior
positions, including hiring an experienced HR Director. The journey
ahead will be to continue to embed our values into business as
usual.
Leadership
Our established senior leadership team have extensive experience
across automotive engineering and manufacturing, as well as the
robotic and autonomous industries. Alongside their technical
capability is a proven ability to grow the Company, successfully
developing new products and entering new geographies.
Since IPO, we have established a new Board of Directors, which
involves experienced industry executives Penny Coates, Joseph
Elliott, Lewis Girdwood and myself as non-executive Directors,
alongside the executive team. We aim to further enhance the profile
and credibility of the Company's business and services, given our
respective extensive experience across the aviation and automotive
sectors.
Corporate Governance
The Board is fully committed to its obligation individually and
collectively to act in good faith to seek to promote the success of
the company for the benefit of its shareholders as a whole and the
interests of other stakeholders. Further details of our approach
are set out in our annual report.
Outlook
Aurrigo begins 2023 with excellent momentum and a clear strategy
for growth, building on the revenue growth and key partnerships it
is seeing following IPO.
We remain on-track to deliver the key phases of growth outlined
at IPO. Our initial development agreement with CAG has progressed
well, with the vehicles delivered and now testing on the ground,
on-schedule. The formal post-period end partnership with CAG now
takes us to the next stage, progressing from prototype testing and
also showcasing our capabilities to other airport groups and
airlines.
The rapid recovery of the aviation sector to almost pre-pandemic
levels during 2022 continues to reinforce industry demand for
efficiencies, decarbonisation and solutions to staff shortages.
This continues to underpin Aurrigo's growth drivers in aviation and
our pipeline of opportunities.
Lastly, I would like to thank our staff for their dedication and
support as we took the step of listing the business on AIM. Thank
you to our founders, David and Graham Keene for having the vision
on which the business was built and now celebrates 30 years of
success. Thanks also to our investors and customers who share in
that vision.
Andrew Cornish
Non-Executive Chair
17 May 2023
CEO REPORT
2022 was a transformational year for Aurrigo. With our
successful IPO on AIM in September 2022, we were able to raise the
funds needed to invest in our innovative technology, develop our
market position and grow our dedicated team. We delivered a strong
operational and financial performance for the year, in line with
market expectations and are proud to be achieving what we set out
at the time of the IPO; increasing our headcount, building our
Company profile and realising the growth potential of the
autonomous aviation division.
Overview
Aurrigo has a strong heritage of automotive expertise, alongside
valuable design capabilities. It has supplied leading vehicle
manufacturers and Tier 1 suppliers for 30 years, including Aston
Martin, Bentley, Jaguar, Land Rover, McLaren and Rolls Royce. Our
consistent delivery of high-quality products has built long-term
customer relationships.
We have created award winning, industry leading autonomous
vehicles by investing in our proprietary products and software.
Aurrigo has developed and owns all IP relating to our autonomous
vehicle technology and we continue to invest in the research and
development of products and software to maintain a market leading
position.
Aviation is a key growth area for Aurrigo's autonomous vehicle
technology, with long term structural drivers. The global airline
industry is seeking to improve its processes, tackle workforce
shortages and reduce the environmental impact of operations, and
these trends will increase demand for smart and sustainable
solutions, offering significant future growth opportunities. This,
coupled with our proprietary airport planning software tool and
autonomous vehicle fleet management system, gives Aurrigo a
significant competitive advantage.
Customers and partners
As well as supplying leading vehicle manufacturers and Tier 1
suppliers, we have developed autonomous vehicles for the aviation
industry and engaged with British Airways, Changi Airport Group,
Gerald R. Ford International Airport (USA) and International
Airlines Group. In addition, Aurrigo has partnerships with academic
institutions including the University of Warwick, University of
Coventry, Aston University, University of Galgotias and the
University of Ottawa to further develop and validate its
technology.
In October 2022, we signed an agreement with Changi Airport
Group for the next phase of development of the Auto-Dolly, our
innovative baggage transportation solution for airports. This
involved trialling the Auto-Dolly on the ground at Changi
Airport.
Post period-end, in February 2023, we signed a formal
partnership with Changi Airport Group for the continued joint
development and testing of our autonomous vehicles, Auto-Dolly and
Auto-DollyTug and our airport simulation software platform,
Auto-Sim. The multi-year partnership agreement with Changi Airport
Group provides an opportunity for further development of our
autonomous solutions at the airport and, in addition, the ability
to showcase the technology to other visiting global airport groups
and stakeholders. Potential customers have responded well to seeing
the vehicles in action and the demonstration of their full range of
capabilities and potential will continue to be key, particularly as
we trial the next generation of vehicles such as the Auto-Dolly Tug
MK3.
There has been significant positive engagement with other
airport groups, both for Auto-Dolly and Auto-Sim, our airport
design, development, simulation and modelling tool and we
anticipate signing additional aviation customers over the next 12
months.
Industry position
Our Automotive division continues to maintain its leadership
position in supplying key components and design to the automotive
industry.
Our Autonomous and Aviation division is rapidly building its own
leading position, particularly within the use of autonomous and
electric vehicles within the aviation industry. This has involved
participating in and speaking at key industry conferences and
roundtables, engaging with sector stakeholders and policymakers as
well as potential customers.
With global air traffic recovering towards pre-pandemic levels
during 2022, and a full recovery expected during 2023 (IATA
estimates), the drivers for our aviation offering continue to be
fundamentally strong. There is a continuous industry focus on
efficiencies, solutions for staff shortages and reducing the
environmental impact of aviation through the use of electric
vehicles.
Innovation
Our strong focus on innovation and R&D continues, with the
next generation of Auto-Dolly and Auto-DollyTug nearing completion.
These vehicles are being developed as a modular system with a
particular focus on the requirement to deliver commercial scale
products in the short to medium term. Following feedback from our
partners, significant improvements have also been made with new
features including automated Unit Load Device (ULD) loading and
unloading, towing additional ULD's on trailers, sideways movement
and ride height control as well as enhanced battery capacity and
faster charging times.
Post period-end, the Company signed an Industry Innovation
Collaboration Agreement with the University of Ottawa in Canada and
also agreed to work closely with the University of Galgotias in
India. We continue to develop opportunities with academia and
industry partners for the development and demonstration of our
autonomous technology solutions building on our national and
international relationships within the aviation and autonomous
sectors.
In February 2023, the Company won a GBP0.7 million Innovate UK
grant as part of the Sunderland Advanced Mobility Shuttle ("SAMS")
project with Sunderland City Council. The Company has won this
funding to provide three Self-Driving zero-emission Auto-Shuttles,
which will transport passengers in central Sunderland. The project
will research, build, trial and evaluate the deployment of a highly
automated, remotely supervised, zero-emission passenger mobility
service within the city. Development work has now commenced, with
the aim of demonstrating a sustainable commercial service during
2024.
Summary
The exciting progress seen during 2022 has continued into 2023,
with industry partnerships and grant-funded projects signed in the
Autonomous and Aviation division and good customer traction across
Automotive, whilst also maintaining strong cost controls.
Our investment in sales and marketing, and the growth of our
aviation industry profile, alongside our partnership with Changi
Airport Group, is resulting in encouraging levels of new enquiries
and potential customer engagement across the globe.
Our Company is in a strong position to continue to deliver the
planned projects and opportunities presented at IPO, particularly
in the aviation space. 2023 will be a year of demonstrating and
proving our aviation products on the ground which will translate
into long term partnerships and ultimately, product sales.
David Keene
Chief Executive Officer
17 May 2023
FINANCIAL REVIEW
The year ended 31 December 2022 was transformational for the
Company, successfully achieving our IPO on AIM during the third
quarter, in what proved to be very difficult market conditions. In
addition, the establishment of our Singapore operation co-located
alongside CAG, our lead aviation partner and the recruitment of a
dedicated team there has helped to cement that relationship.
Current year review
The Autonomous and Aviation division continues to develop and
showcase its autonomous technology and product offerings and
consult with potential customers. Revenue in this division has
increased by 41.5% following demonstration deployments of the
Auto-Pod and Auto-Shuttle across three sites in the UK. The related
R&D capitalised costs and deferred revenue of these projects
have been charged/released to the statement of comprehensive income
in the year.
The Automotive division was not directly affected by any supply
chain issues. However, difficulties in within the automotive sector
resulted in out of the norm shutdowns by some vehicle OEMs where
they were not able to build vehicles and therefore volumes were
down. As we supply mainly premium and special vehicle segments
within the industry, we were partially protected from this, but
Automotive revenues were down by 2.3% compared to 2021. This is
expected to recover through 2023.
Gross profit margin for the year was fairly flat at 34.3%
compared to 34.6% in 2021 resulting from increased inflationary
pressures and product sales mix.
Overheads have significantly increased through the year, driven
by the Company joining AIM. One-off costs related to this process
charged to the statement of comprehensive income account amounted
to GBP1,010k and the additional costs related to operating a public
company have accrued through the final quarter of the year.
Adjusted EBITDA was a loss of GBP939K after other operating income
of GBP278K, of which GBP107K relates to R&D tax credits. This
compares to an adjusted EBITDA profit of GBP354k where increased
costs due to being a listed business were not incurred.
We have continued to take advantage of grant funding in order to
develop and demonstrate our autonomous products, with GBP842k of
cash receipts added to deferred revenue in the year.
Statement of financial position
With the IPO having raised gross proceeds of GBP8.0 million in
total, at 31 December 2022, the Company's cash balance was GBP5.4m,
an increase of 317% at end 2021. We are now well funded to continue
to take advantage of the opportunities that we are currently
seeing.
Post IPO, proceeds have been invested in innovation and R&D
and increasing our headcount - particularly building our
engineering and sales and marketing capabilities and establishing
full time operations in both Singapore and Ottawa. Inventory has
also increased through the introduction of new product lines due to
become core automotive sales from 2023 onwards. Development costs
have continued to be capitalised, adding GBP1m to fixed assets net
of amortisation. CBILS loans continue to be paid in accordance with
the contracted schedule of payments and stand at GBP85k and are due
to be fully paid in 2025.
Outlook
Increased automotive interest and continued progress with our
lead aviation partner for our autonomous baggage handling vehicles
positions Aurrigo well to build on its current year results.
Ian Grubb
Chief Financial Officer
17 May 2023
FINANCIAL STATEMENTS
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2022
2022 2021
GBP'000 GBP'000
--------------------------------------------------------- --------------------- ---------------------
Revenue 5,302 5,268
Cost of sales (3,483) (3,446)
--------------------------------------------------------- --------------------- ---------------------
Gross profit 1,819 1,822
Other operating income 278 168
Administrative expenses including non-recurring
expenses, share based payment charges,
depreciation and amortisation
(4,569) (1,789)
-------------------------------------------------------- --------------------- ---------------------
Operating (loss)/profit (2,472) 201
--------------------------------------------------------- --------------------- ---------------------
Costs of admission to AIM (1,010) - 36
Related party loan write back - (143) - (185)
Share based payments (208) (4)
Depreciation (172)
Amortisation
Adjusted EBITDA*
--------------------------------------------------------- --------------------- ---------------------
(939) 354
-------------------------------------------------------- --------------------- ---------------------
Finance income 2 -
Finance costs (26) (23)
--------------------------------------------------------- --------------------- ---------------------
(Loss)/profit before taxation (2,496) 178
Income tax income/(expense) 301 (106)
--------------------------------------------------------- --------------------- ---------------------
(Loss)/profit for the year attributable
to equity shareholders of the parent (2,195) 72
--------------------------------------------------------- --------------------- ---------------------
Other comprehensive income:
Items that will not be reclassified to
profit or loss (2) -
Currency translation differences
--------------------------------------------------------- --------------------- ---------------------
Total items that will not be reclassified
to profit or loss (2) -
--------------------------------------------------------- --------------------- ---------------------
Total other comprehensive income for the
year (2) -
--------------------------------------------------------- --------------------- ---------------------
Total comprehensive income for the year (2,197) 72
--------------------------------------------------------- --------------------- ---------------------
Profit and total comprehensive income for the year is all
attributable to owners of the parent company. All (loss)/ profit
after taxation arise from continuing operations.
* Adjusted EBITDA refers to earnings before interest, tax,
depreciation, amortisation, impairment, share-based payment
charges, and exceptional items.
2022 2021
GBP per share GBP per share
------------------------ -------------- --------------
Earnings per share
Basic (GBP per share) (0.12) 0.06
Diluted (GBP per share) (0.12) 0.06
------------------------ -------------- --------------
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
2022 2021
GBP'000 GBP'000
--------------------------------------- -------- --------
Non-current assets
Intangible assets 5,403 4,394
Property, plant and equipment 306 237
Deferred tax asset - 3
--------------------------------------- -------- --------
Total non-current assets 5,709 4,634
--------------------------------------- -------- --------
Current assets
Inventories 931 778
Trade and other receivables 1,532 1,168
Current tax recoverable 174 324
Cash and cash equivalents 5,386 1,290
--------------------------------------- -------- --------
Total current assets 8,023 3,560
--------------------------------------- -------- --------
Total assets 13,732 8,194
--------------------------------------- -------- --------
Current liabilities
Trade and other payables 1,143 1,079
Borrowings 30 30
Lease liabilities 79 155
Deferred grant income 217 -
--------------------------------------- -------- --------
Total current liabilities 1,469 1,264
--------------------------------------- -------- --------
Net current assets 6,554 2,296
--------------------------------------- -------- --------
Total assets less current liabilities 12,263 6,930
--------------------------------------- -------- --------
Non-current liabilities
Borrowings 55 85
Lease liabilities 132 26
Deferred tax liabilities - 351
Deferred grant income 3,442 2,944
--------------------------------------- -------- --------
Total non-current liabilities 3,629 3,406
--------------------------------------- -------- --------
Total liabilities 5,098 4,670
--------------------------------------- -------- --------
Net assets 8,634 3,524
--------------------------------------- -------- --------
Equity
Called up share capital 83 -
Share premium account 7,103 -
Share option reserve 143 -
Retained earnings 1,305 3,524
--------------------------------------- -------- --------
Total equity 8,634 3,524
--------------------------------------- -------- --------
The financial statements were approved by the board of directors
and authorised for issue on 17 May 2023.
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2022
Share Share
Share premium option Retained
capital account reserve earnings Total
--------------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --------- ----------------- ---------- ---------------- ------------------- ---------------
Balance at 1 January
2021
Year ended 31 December
2021: - - - 3,552 3,552
Profit and total comprehensive
income for the year - - - 72 72
Transactions with owners
in their capacity as
owners:
Dividends - - - (100) (100)
------------------------------- ----------------- ---------- ---------------- ------------------- ---------------
Balance at 31 December
2021 - - - 3,524 3,524
Year ended 31 December 2022:
Loss for the year
Other comprehensive income: - - - (2,195) (2,195)
Currency translation
differences - - - (2) (2)
------------------------------- ----------------- -------------- ------------ ------------------- -------------
Total comprehensive
income
for the year - - - (2,197) (2,197)
Transactions with owners
in their
capacity as owners:
Issue of share capital 33 8,133 - - 8,166
Costs of issue set
against
premium - (1,030) - - (1,030)
Share option expense - - 143 - 143
Deferred tax on share
based
payment transactions - - - 28 28
Issue of share capital
from reserves 50 - - (50) -
------------------------ ----- ----------------- -------------- ------------ ------------------- -------------
Balance at 31 December 2022 83 7,103 143 1,305 8,634
------------------------------- ----------------- -------------- ------------ ------------------- -------------
GROUP STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2022
2022 2021
------------------------------- -------------------- --------------------
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------------------- --------------------
Operating activities
(Loss)/profit for the year (2,195) 72
Adjustments for:
Tax charge (301) 106
Finance costs 26 23
Investment income (2) -
RDEC grant income (107) -
Loss on disposal of assets - 1
Amortisation and impairment
of
intangible assets 172 4
Depreciation and impairment
of
property, plant and equipment 208 184
Impairment of debts from third
parties - (36)
Non cash grant income - (13)
Equity settled share based
payment
expense 143 -
------------------------------- -------------------- --------------------
(2,056) 341
Movements in working capital:
Increase in inventories (153) (156)
Increase in trade and other
receivables (367) (172)
Increase in trade and other
payables 58 273
------------------------------- -------------------- --------------------
Cash (absorbed by)/generated
from
operations (2,518) 286
Interest paid (2) -
Income taxes refunded 238 42
------------------------------- -------------------- --------------------
Net cash (outflow)/inflow
from
operating activities (2,282) 328
Investing activities
Capitalised development costs (1,155) (1,174)
Grant income on capitalised
research and development 715 847
Purchase of intangible assets (24) (31)
Purchase of property, plant
and
equipment (62) (16)
Repayment of loans issued
to
third parties - 36
Interest received 2 -
------------------------------- -------------------- --------------------
Net cash used in investing
activities (524) (338)
------------------------------- -------------------- --------------------
2022 2021
------------------------------ -------------------- --------------------
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------------------- --------------------
Financing activities
Interest paid (21) (23)
Proceeds from issue of shares 7,136 -
Repayment of bank loans and
borrowings (30) (17)
Payment of lease liabilities (182) (163)
Dividends paid - (100)
------------------------------ -------------------- --------------------
Net cash generated from/(used
in)
financing activities 6,903 (303)
------------------------------ -------------------- --------------------
Net increase/(decrease) in
cash and
cash equivalents 4,097 (313)
Cash and cash equivalents
at
beginning of year 1,290 1,603
Effect of foreign exchange
rates (1) -
------------------------------ -------------------- --------------------
Cash and cash equivalents
at
end of year 5,386 1,290
------------------------------ -------------------- --------------------
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2022
1. Basis of preparation
While the financial information in these results has been
prepared using the recognition and measurement principles of UK
adopted International Accounting Standards, this announcement does
not contain sufficient information to comply with this. The
principal accounting policies used in preparing the results have
been applied in the comparatives for the year-ended 31 December
2021.
The financial information set out above does not constitute the
Group's statutory accounts for the years ended 31 December 2022 or
2021, but is derived from those accounts noting that the Group
transitioned to UK Adopted International Accounting Standards as
disclosed in the Admission Document upon the Group's admission to
the AIM Market. Statutory accounts for the year ended 31 December
2021 have been delivered to the Registrar of Companies and those
for the year ended 31 December 2022 will be delivered following the
Company's annual general meeting.
The auditors have reported on those accounts and their reports
were qualified in respect of earlier years' accounts not being
subject to audit.
2. Accounting Policies
Company Information
Aurrigo International Plc is a public company limited by shares
incorporated in England and Wales. The registered office is Unit 33
Bilton Industrial Estate, Humber Avenue, Coventry, CV3 1JL. The
company's principal activities and nature of its operations are
disclosed in the directors' report.
The group consists of Aurrigo International Plc and all of its
subsidiaries.
Going Concern
The Company has consolidated its trading position in the year,
maintaining sales of GBP5.3m and gross profit of GBP1.8m. Net cash
stands at GBP5.4m having successfully listed on AIM with net
proceeds of GBP7.2m.
Management has prepared detailed financial projections for a
period of at least 12 months from the date of signing the financial
statements ("Review Period"). These projections are based on the
Company's detailed annual business plan. Sensitivity analysis has
been performed to model the impact of more adverse trends compared
to those included in the financial projections in order to estimate
the impact of severe but plausible downside risks.
The key sensitivity assumptions applied include:
- Delay in revenues derived from R&D testing of Autonomous vehicles and related simulation.
- Increased wage rate inflation.
- Increased general inflation on input costs, including goods sold.
Mitigating actions available to the Company were applied and the
Board challenged the assumptions used. After reviewing the
forecasts the Board has formed the judgement at the time of
approving the financial statements that there is a reasonable
expectation that the Company has adequate resources to continue in
operational existence for at least twelve months from the date of
approval of these financial statements.
3. Revenue and Segmental Analysis
IFRS 8 'Operating Segments' requires operating segments to be
identified on the basis of internal reports of the Group that are
regularly reviewed by the Group's chief operating decision maker.
The chief operating decision maker of the Group is considered to be
the Board of Directors. The Group has considered the overriding
core principles of IFRS 8 'Operating segments' as well as its
internal reporting framework, management and operating structure.
The conclusion is that the Group has two operating segments as
follows:
-- Automotive components - the supply of electrical components
for use in the automotive sector and across other industrial
applications, as well as trim and design components.
-- Autonomous - the design, development and manufacture of
autonomous vehicles and associated autonomous design and
consultancy services.
Where costs cannot be meaningfully allocated to either primary
operating segment, these are allocated as central costs and
overheads.
The Group does not track its assets and liabilities by operating
segment, and as such no information is provided to the chief
operating decision maker in this respect. As such, no disclosure is
provided of the segmental analysis of assets and liabilities.
The Group previously named the two sectors "Electrical
components" and "Autonomous vehicles". The change in name is to
clarify the wider basis of operations in each division and does not
otherwise represent any reorganisation of operating segments.
The revenues are allocated to the following operating
segments:
2022 2021
GBP'000 GBP'000
--------------------------------------- ---------------------- ----------------------
Revenue analysed by class of business
Automotive components Autonomous 4,803 4,915
499 353
--------------------------------------- ---------------------- ----------------------
5,302 5,268
--------------------------------------- ---------------------- ----------------------
All revenue is recognised at a point in time when the single
performance obligation is satisfied and the product is sold to the
customer. This is usually at the point that the customer has signed
for the delivery of the goods and the significant risks and rewards
of ownership of the goods has transferred to the customer. There
were no volume discounts in the current or prior year.
The Group presents the majority of its direct costs split on a
reasonable basis for the operating segments identified, with any
non-allocated income and costs presented within the central
segment. The results are allocated to the following operating
segments:
Automotive
Year ended 31 December 2022: components Autonomous Central Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ---------------- ------------ --------- -----------------
Revenue 4,803 499 - 5,302
Cost of sales (3,306) (177) - (3,483)
------------------------------- ---------------- ------------ --------- -----------------
Gross profit 1,497 322 - 1,819
Other operating income - 278 - 278
Costs of admission to AIM - - (1,010) (1,010)
Expenditure - - (3,178) (3,178)
------------------------------- ---------------- ------------ --------- -----------------
EBITDA 1,497 600 (4,188) (2,091)
Depreciation and amortisation - (172) (208) (380)
------------------------------- ---------------- ------------ --------- -----------------
Operating profit/(loss) 1,497 428 (4,396) (2,471)
Interest receivable - - 2 2
Finance costs - - (26) (26)
------------------------------- ---------------- ------------ --------- -----------------
Profit/(loss) before tax 1,497 428 (4,420) (2,495)
------------------------------- ---------------- ------------ --------- -----------------
Automotive
components Autonomous Central Total
Year ended 31 December GBP'000 GBP'000 GBP'000 GBP'000
2021:
------------------------------ ------------------------- ------------------- --------- -------
Revenue 4,915 353 - 5,268
Cost of sales (3,417) (29) - (3,446)
------------------------------ ------------------------- ------------------- --------- -------
Gross profit 1,498 324 - 1,822
Other operating income - 148 20 168
Related party loan write
off - - 36 36
Expenditure - - (1,637) (1,637)
------------------------------ ------------------------- ------------------- --------- -------
EBITDA 1,498 472 (1,581) 389
Depreciation and amortisation - - (189) (189)
------------------------------ ------------------------- ------------------- --------- -------
Operating profit/(loss) 1,498 472 (1,770) 200
Interest receivable - - - -
Finance costs - - (23) (23)
------------------------------ ------------------------- ------------------- --------- -------
Profit/(loss) before tax 1,498 472 (1,793) 177
------------------------------ ------------------------- ------------------- --------- -------
Revenue from customers who individually accounted for more than
10% of total Group revenue amounted to GBP4,051,430 (2021 -
GBP3,418,073) from two customers, as follows:
2022 2021
GBP'000 GBP'000
----------- ---------------------- ----------------------
Customer 1 1,454 1,432
Customer 2 2,597 1,986
----------- ---------------------- ----------------------
4,051 3,418
----------- ---------------------- ----------------------
Revenue from each of the above customers is recognised in the
supply of automotive components segment.
2022 2021
GBP'000 GBP'000
----------------------------------------- ---------------------- ----------------------
Revenue analysed by geographical market
United Kingdom Europe 5,081 4,943
Rest of the World 162 122
59 203
----------------------------------------- ---------------------- ----------------------
5,302 5,268
----------------------------------------- ---------------------- ----------------------
Assets and liabilities related to contracts with customers:
The Group had no contract assets or contract liabilities at the
year-end (2021 - GBPnil).
4. Other Operating Income
2022 2021
GBP'000 GBP'000
--------------------------------------------- ---------------------- ----------------------
Government grants 171 23
Research and development expenditure credit 107 145
--------------------------------------------- ---------------------- ----------------------
278 168
--------------------------------------------- ---------------------- ----------------------
Government grants comprise the following:
-- Covid-19 job retention scheme grant totaling GBPnil (2021 -
GBP6,756) which is credited to the income statement in the period
in which the expenditure for which it is intended to contribute
towards has been incurred;
-- other Coronavirus support of GBPnil (2021 - GBP13,362); and
-- other grant income of GBP171,173 (2021 - GBP3,262) in
relation to Innovate UK, Australian and Canadian equivalents, and
UK local government bodies.
The Group has recognised the following liabilities in relation
to other grant income:
2022 2021
GBP'000 GBP'000
------------------------------------------------ ---------------------- ----------------------
At 1 January 2,944 2,097
Value of grant income to which entitlement was
established in the year Amounts recognised in
other operating income during the year 886 850
(171) (3)
------------------------------------------------ ---------------------- ----------------------
At 31 December 3,659 2,944
------------------------------------------------ ---------------------- ----------------------
Included in the above is deferred grant income due within one
year of GBP217,248 (2021 - GBPnil).
The release of deferred grant income is dependent on when
amortisation of development costs begins but there are no other
external contingencies in relation to recognising the grant income,
except for the requirement to match the associated amortisation
expense.
5. Dividends
Amounts recognised as distributions:
2022 2021 2022 2021
per share per share Total Total
GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ---------- ------------------- ---------------------- ----------------------
Final dividend paid - 0.08 - 100
-------------------- ---------- ------------------- ---------------------- ----------------------
The directors do not propose payment of a final dividend for the
current year.
6. Earnings Per Share
2022 2021
Number Number
------------------------------------------------------- ----------------- -----------------
Number of shares
Weighted average number of ordinary shares for
basic earnings per share Effect of dilutive potential 18,721,737 1,208,215
ordinary shares:
- Weighted average number outstanding share options - -
------------------------------------------------------- ----------------- -----------------
Weighted average number of ordinary shares for
diluted earnings per share 18,721,737 1,208,215
------------------------------------------------------- ----------------- -----------------
2022 2021
GBP'000 GBP'000
------------------------------------------------------ ---------------------- ----------------------
Earnings
Continuing operations
Loss/profit for the period from continued operations (2,195) 72
------------------------------------------------------ ---------------------- ----------------------
2022 2021
GBP per GBP per share
share
--------------------------------------------- -------- --------------
Earnings per share for continuing operations
Basic earnings per share (0.12) 0.06
Diluted earnings per share (0.12) 0.06
--------------------------------------------- -------- --------------
In the current year the Group incurred losses and as such has
not presented any dilutive shares in accordance with IAS 33
'Earnings per share'. The diluted earnings per share is therefore
the same as the basic earnings per share.
The Group does have a number of share options, which have been
issued during the current year, that would dilute the earnings per
share should the Group become profitable.
There were no share options outstanding at the end of the prior
year.
Adjusted earnings per share
The Directors use adjusted earnings before exceptional costs
share based payment expenses, depreciation and amortisation. This
creates an alternative performance measure which the Directors
believe reflects a fair estimate of ongoing profitability and
performance. The calculated Adjusted Earnings for the current
period of accounts is as follows:
2022 2021
Number Number
--------------------------------------------------------- ------------ -----------
Number of shares
Weighted average number of ordinary shares for
basic earnings per share 18,721,737 1,208,215
--------------------------------------------------------- ------------ -----------
Effect of dilutive potential ordinary shares:
* Weighted average number outstanding share options - -
- -
* Convertible debt
--------------------------------------------------------- ------------ -----------
Weighted average number of ordinary shares for
diluted earnings per share 18,721,737 1,208,215
--------------------------------------------------------- ------------ -----------
2022 2021
GBP'000 GBP'000
----------------------------------------------------- ---------------------- ----------------------
Adjusted earnings
Loss/profit for the period from continued operations (2,195) 72
Adjusted for:
Non-recurring costs 1,010 (36)
Share based payment expense 143 -
Depreciation 208 185
Amortisation 172 4
Net finance costs 24 23
Taxation (301) 106
----------------------------------------------------- ---------------------- ----------------------
Adjusted earnings for basic and diluted earnings
per share (939) 354
----------------------------------------------------- ---------------------- ----------------------
2022 2021
GBP per GBP per share
share
----------------------------------------------------- ---------------------- ----------------------
Earnings per share for continuing operations
Basic earnings per share (0.05) 0.29
Diluted earnings per share (0.05) 0.29
----------------------------------------------------- ---------------------- ----------------------
As the adjusted earnings per share still shows the Group
incurring losses during the current year, the dilutive shares have
not been presented for the adjusted earnings per share calculation
also. The diluted earnings per share is therefore the same as the
basic earnings per share.
2022 2021 2022 2021
Ordinary share capital Number Number GBP'000 GBP'000
---------------------------- ------------------- ------------------- ---------------------- ----------------------
Authorised, issued and fully
paid
Ordinary shares of GBP0.002
each (2021 - GBP0.00001
each) 41,666,667 1,208,215 83 -
---------------------------- ------------------- ------------------- ---------------------- ----------------------
7. Share Capital
Various reorganisation steps were taken on 27 July 2022 in
relation to the IPO as follows:
-- Issue of one Ordinary share with nominal value of GBP0.00001
per share at the market value of GBP19.45 per share.
-- Issue of 11,784 Ordinary shares from reserves to existing
shareholders at a ratio of 1,743 new Ordinary shares for every
151,027 existing Ordinary shares held. The bonus shares issued are
of the same class and same nominal value as the existing
holdings.
-- Consolidation its Ordinary shares at a ratio of 1 new
Ordinary share for every 200 existing Ordinary shares held.
-- Issue of 24,993,900 Ordinary shares from reserves to existing
Ordinary shareholders at a ratio of 249,939 new Ordinary shares for
every 61 existing Ordinary shares held. The bonus shares issued are
of the same class and same nominal value as the existing
holdings.
On 15 September 2022 the Company announced the admission to
trading on the AIM market of the London Stock Exchange. The Company
raised GBP8,166,667 (before expenses) by way of placing 16,666,667
Ordinary shares of GBP0.002 each.
Reconciliation of movements during the year: Number
--------------------------------------------- -----------
At 1 January 2022 1,208,215
Issue of fully paid shares 1
Issue from reserves 11,784
Consolidation of existing shares (1,213,900)
Issue from reserves 24,993,900
Allotment of shares 16,666,667
--------------------------------------------- -----------
At 31 December 2022 41,666,667
--------------------------------------------- -----------
Reserves of the Company represent the following:
Share capital - Shares in the Company held by Shareholders.
Share premium account - premium on the company's ordinary share
capital
Retained earnings - Retained earnings represent cumulative net
gains and losses recognised in the Statement of Comprehensive
Income.
Share option reserve - the cumulative charge for share based
payments, less amounts subsequently exercised or cancelled.
8. Annual Report and Notice of Annual General Meeting
The annual report and accounts for the year ended 31 December
2022 will be available on the Company's website and posted to
shareholders in due course, together with the notice of the Annual
General Meeting, which will be held on 14th June 2023 at the
offices of Aurrigo International plc.
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END
FR SFDEFMEDSELI
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May 17, 2023 02:00 ET (06:00 GMT)
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