TIDMCPH2
RNS Number : 3810A
Clean Power Hydrogen
23 September 2022
23 September 2022
Clean Power Hydrogen Plc
("CPH2", the "Company" or the "Group")
Interim results for the six months ending 30 June 2022
CPH2 (AIM: CPH2), the UK-based green hydrogen technology and
manufacturing company that has developed the IP-protected
Membrane-Free Electrolyser (TM) ("MFE"), is pleased to announce its
unaudited results and report for the six months ending 30 June 2022
("H1 2022").
Highlights
-- Successful admission to AIM, a market operated by the London
Stock Exchange, in February 2022, raising gross proceeds of
GBP30.5m
o Awarded the London Stock Exchange Green Economy Mark at
admission
-- Order book momentum:
o Entered into a purchase order with AFCyro, for the sale of a
1MW MFE220 unit, the second unit purchased by the company
o Order placed by ATOME Energy, for one 1MW MFE220 unit
-- License agreement momentum:
o Signed a 2 gigawatts ("GW") license to GHFG Ltd, a subsidiary
of Alternus Energy Group Plc, over a period of up to 20 years, with
production expected in 2023.
o Technical Cooperation Agreement with Bentec GmbH, an operating
company entity of Kenera Energy Solutions ("Kenera") providing for
the manufacture of up to 30 MFE220 units for CPH2 at its
manufacturing facility in Germany. Kenera is a business unit of our
strategic shareholder, the KCA Deutag Group.
o Kenera has been awarded a non-exclusive license to sell and
manufacture CPH2 products in Germany, Scotland, Azerbaijan, Denmark
and Norway up to a maximum of 150 MFE units per annum.
o CPH2 has also granted Kenera an exclusive license to sell and
manufacture CPH2 products across the Middle East up to a maximum
level of 2GW (including Oman, Saudi Arabia, United Arab Emirates,
Qatar, Kuwait and Iraq).
-- The appointment of James Hobson as Chief Financial Officer
("CFO") and executive director joining later in the year
-- Significantly invested in its workforce, increasing the head
count from under 30 at IPO to over 50 as at 23 September 2022. This
includes the appointment of Arash Selahi as the new Head of
Production
-- Period end net asset position of GBP27.4 million, of which
GBP23.2 million was in cash or current assets investments (bank
deposits).
Jon Duffy, CPH2 CEO commented:
"The first half of 2022 was a notable period for the Company as
it listed on AIM and funded itself for a rapid ramp up and
expansion. We have also seen both purchase order and license
agreement momentum in the period, as customers from around the
world have seen the value of the low cost, highly robust membrane
free electrolyser technology owned, manufactured and licensed by
CPH2. We are working successfully to overcome the engineering
challenges and look to the future with confidence."
For more information, please contact:
Clean Power Hydrogen Plc via Camarco
Jon Duffy, Chief Executive Officer
Cenkos Securities plc - NOMAD & Broker
+44 (0)131 220
Neil McDonald 9771
+44 (0)131 220
Peter Lynch 9772
+44 (0)131 220
Adam Rae 9778
+ 44(0) 20 3 757
Camarco PR 4980
Billy Clegg
Owen Roberts
Fergus Young
To find out more, please visit: https://www.cph2.com
Overview of CPH2
CPH2 is the holding company of Clean Power Hydrogen Group
Limited ("Clean Power") which has almost a decade of dedicated
research and product development experience. This experience has
resulted in the creation of simple, safe and sustainable technology
which is designed to deliver a modular solution to the hydrogen
production market in a cost-effective, scalable, reliable and
long-lasting manner. The Group's strategic objective is to deliver
the lowest LCOH in the market in relation to the production of
green hydrogen. The Group's MFE technology is already commercially
available and demonstrating cost efficiencies and technological
advantages. CPH2 is listed on the AIM market and trades under the
ticker LON:CPH2.
CEO statement
Introduction and IPO
H1 2022 is the first reporting period for CPH2 as a plc and it
has been a period of significant progress as we gear up to
production of the MFE units. The Company admitted to trading on AIM
on 16 February, successfully raising GBP30.5 million (before
expenses) in an over-subscribed Placing at 45p per share. These
funds enable the Company to build out its Doncaster manufacturing
facility and fund the Company's growth. At the same time, we were
awarded the London Stock Exchange's Green Economy Mark, which
recognises companies that derive 50% or more of their total annual
revenues from products and services that contribute to the global
green economy.
Order book momentum
Shortly after IPO, the Company announced that ATOME Energy
purchased a 1MW MFE220 electrolyser unit to be deployed in ATOME's
Paraguay mobility project. At the same time, CPH2 and ATOME entered
into non-binding letters of intent confirming the parties' mutual
intentions to collaborate in respect of potential future orders of
electrolyser units for ATOME's international hydrogen and ammonia
projects and to investigate and discuss a potential joint venture
for the future production of electrolysers in country to serve the
Latin American market using CPH2's technology and know-how. ATOME
has confirmed that it expects that further orders will follow in
due course.
This first unit for ATOME's Mobility Division will be based
within the region of Asuncion, the capital of Paraguay, with
commencement of production planned during 2023, which is
anticipated to be the first commercial production of hydrogen for
transport in Paraguay.
We were also pleased to announce a purchase order with AFCryo, a
New Zealand based manufacturer of composite cryostats and cryogenic
cooling systems, for the sale of a 1MW MFE220 electrolyser unit to
be delivered in 2023. This is the second 1MW electrolyser unit that
AFCryo has purchased within 18 months. CPH2 has an established
working relationship with AFCryo and utilises the AFCryo cryogenic
cooling system in its MFEs. CPH2's MFE220 runs with 1MW of input
power with eight stacks and is capable of producing 450kg/day of
high purity hydrogen output.
In May 2021 AFCryo placed an order for its first 1MW MFE220
electrolyser, with delivery anticipated in 2023. Additionally, in
2021, AFCryo was appointed as a non-exclusive agent for the
marketing and sale of the CPH2 electrolyser system in Australia,
New Zealand and the Pacific Islands.
Both of these electrolysers will be used as part of the
decarbonisation of New Zealand's heavy transport fleet.
Future order momentum through license agreements
Since IPO, as well as unit sales, we have also announced two
significant license agreements, which will play an important role
in providing order momentum into the future as we scale up the
business and expand overseas.
The first one is with GHFG for the construction of 2GW of MFE
electrolysers over a period of up to 20 years. GHFG is a subsidiary
of Alternus. Under the licence agreement, GHFG will produce the
CPH2 MFE electrolysers at a new facility in Ireland and plans to
start production during 2023. Each electrolyser produced by GHFG
under this agreement will be installed alongside and powered from
solar energy projects owned and operated by Alternus. Under the
agreement, CPH2 will receive an upfront licence fee, and
thereafter, a technology fee per unit, followed by service and
maintenance licences during the unit's life, supplying key
components with a margin to CPH2 . The upfront licence fee is
expected to be received in Q4 2022 and Q1 2023 and is to be
recognised as revenue over the life of the contract.
In September 2022, we also signed a Technology Cooperation
Agreement with Bentec GmbH, an operating company entity of Kenera
Energy Solutions, a newly formed business unit within leading
drilling, engineering and technology company KCA Deutag Group.
Kenera has been formed as the platform from which the KCA Deutag
Group plans to grow its offering within hydrocarbon and energy
transition markets and is a significant investor in CPH2. Under the
Agreement, Kenera will manufacture up to 30 MFE220 units for CPH2
at its manufacturing facility in Germany with the first units
expected to be produced in late 2023. We have also granted Kenera a
non-exclusive license to sell and manufacture CPH2 products in
Germany, Scotland, Azerbaijan, Denmark and Norway up to a maximum
of 150 MFE units per annum and we have granted Kenera an exclusive
license to sell and manufacture CPH2 products across the Middle
East up to a maximum level of 2GW over the length of the license
(including Oman, Saudi Arabia, United Arab Emirates, Qatar, Kuwait
and Iraq).
Addressing engineering issues
As we previously announced, our early-stage commissioning of our
initial units highlighted certain engineering and scale up issues.
A number of design changes have been made but this has resulted in
delays. At the same time, we have experienced delays in the supply
chain as the global situation impacted. We are working hard to
overcome all these issues. However, as previously reported, these
delays will have an impact on the income for the Company during
2022. We are not expecting any income from sales in this financial
year as the invoice point for MFE220's shipped in 2022 will get
rolled into 2023. We are expecting the first two MFE220's to leave
our premises in October 2022, there will then follow a period of
commissioning and testing on site. There will be an option to
exchange these units for upgraded units in 2023 as design changes
are implemented. These would then be upgraded to the new
specifications and will be available for sale.
We recognise the importance of getting our first MFE220's
working 'in the field' and are deploying all necessary resources to
make this happen.
Financial Review
These sixth month interim accounts are the first to be published
by the Company since its IPO in February, and this dominated the
results for this six month period. The GBP30.5m gross fundraise
transforms the Balance Sheet from a net liability position at 31st
December 2021 of GBP0.4 million into a net asset position of
GBP27.4 million at 30 June 2022. Of this GBP23.2 million was held
in cash or current asset investments (cash deposits).
The Statement of Comprehensive Income for the six months set out
below shows trading losses continue as the business continues to
build work-in-progress on its confirmed orders, ahead of the
delivery of those orders to the customer, at which time a sale is
taken to Income. Losses continue as expected with administration
expenses increasing, as we invest some of the IPO proceeds in
building our human and technical resource capability.
Board and team
During the first half we have invested significantly in the team
which has increased from 30 people to over 50 people currently,
including the appointment of Arash Selahi as the new Head of
Production.
Post period end we were pleased to announce the appointment of
James Hobson as Chief Financial Officer and Executive Director. It
is expected that James' employment will commence in Q4 2022, at
which point Clive Brook will retire as an executive director and
CFO of the Company. James will join CPH2 from AMTE Power plc, where
he has been CFO since October 2021. James has a wealth of
experience across the energy sector, having worked as a senior
finance executive in the sector for ten years. I would like to take
this opportunity of thanking Clive for all his support over the
years and speak on behalf of the entire CPH2 team in wishing him
all the best in his retirement.
I would like to take this opportunity to thank all my colleagues
at CPH2 for their hard work and dedication during the first half of
the year and since.
Outlook
The continued drive to net zero combined with the current
geo-political situation in Ukraine, has, in the view of the
directors, increased the potential market for green hydrogen and
the pace at which the technology will be deployed. The Company
remains confident that its significant pipeline will start to
transition to sales and we expect very positive cash inflows on
future orders as they are taken. Production of these orders will be
in Doncaster and Germany. Whilst the Company is still planning to
launch a 2MW MFE440, final design work on this has been suspended
until we have working MFE220's in the field. The Company is
progressing the potential opening of a CPH2 run assembly plant in
Northern Ireland. Whilst engineering and scale up issues have
delayed our initial MFE220 sales, our success in securing license
partners of the quality of Kenera and GHFG ensures that we will be
able to ramp up production quickly to meet demand.
The Company remains committed to its strategic target of 4GW MFE
annual production by 2030; of this 1GW will be in-house
manufacturing and assembly and 3GW will be via license
agreements.
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
Note Unaudited Unaudited
Six months Six months
ended 30 ended 30
June June
2022 2021
GBP'000 GBP'000
Revenue - -
Cost of sales - -
Gross profit - -
Other operating income 2 36
Administrative expenses
excluding exceptional
credits and costs (2,158) (872)
Exceptional net credit/(costs) 4 987 (1,256)
------------ -------------
Total administrative
expenses (1,171) (2,128)
Operating loss (1,169) (2,092)
Finance income 91 6
Finance expense (28) (3)
Loss before taxation (1,106) (2,089)
Taxation - 5
Loss for the period (1,106) (2,084)
Other comprehensive
(expense)/income
Foreign currency translation
differences (9) 19
------------ -------------
Loss and total comprehensive
expense for the period (1,115) (2,065)
------------ -------------
Loss per share (pence)
Basic and diluted 5 (0.45) (1.14)
------------ -------------
Consolidated Statement of Financial Position
As at 30 June 2022
Notes Unaudited Audited
30 June 31 December
2022 2021
GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 6 1,527 1,176
Property, plant and
equipment 1,347 1,327
Trade and other receivables 8 120 120
-------------
2,994 2,623
---------- -------------
Current assets
Inventories 7 3,889 2,082
Trade and other receivables 8 2,085 704
Tax recoverable - 143
Current asset investments 9 21,000 -
Cash and cash equivalents 2,175 480
---------- -------------
29,149 3,409
---------- -------------
Total assets 32,143 6,032
---------- -------------
LIABILITIES
Current liabilities
Trade and other payables 10 (3,530) (2,772)
Loan from a related
party - (382)
Lease liabilities (117) (131)
-------------
(3,647) (3,285)
---------- -------------
Non-current liabilities
Accruals and deferred
income 10 (278) (2,243)
Lease liabilities (797) (856)
-------------
(1,075) (3,099)
---------- -------------
Total liabilities (4,722) (6,384)
---------- -------------
Net assets/(liabilities) 27,421 (352)
---------- -------------
EQUITY
Share capital 11 2,654 1,852
Share premium account 11 27,638 -
Merger reserve 11 3,702 3,702
Currency differences
reserve (5) 4
Accumulated loss (6,568) (5,910)
-------------
Total equity 27,421 (352)
---------- -------------
Consolidated Statement of Changes in Equity
As at 30 June 2022
Share Share Merger Foreign Accumulated Total
capital premium reserve currency loss equity
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 1,815 - 3,189 (16) (2,793) 2,195
Loss for the period - - - - (2,084) (2,084)
Other comprehensive
income:
Foreign currency differences - - - 19 - 19
--------- --------- --------- ---------- ------------ --------
Total comprehensive
expense for the period - - - 19 (2,084) (2,065)
Share based payment - - - - 91 91
Issue of share capital 37 - 513 - - 550
--------- --------- --------- ---------- ------------ --------
Total contributions
by owners 37 513 - 91 641
At 30 June 2021 1,852 - 3,702 3 (4,786) 771
--------- --------- --------- ---------- ------------ --------
Loss for the period - - - - (1,233) (1,233)
Other comprehensive
income:
Foreign currency differences - - - 1 - 1
--------- --------- --------- ---------- ------------ --------
Total comprehensive
expense for the period - - - 1 (1,233) (1,232)
Share based payment - - - - 109 109
Total contributions
by owners - - - - 109 109
At 31 December 2021 1,852 3,702 4 (5,910) (352)
--------- --------- --------- ---------- ------------ --------
Loss for the period - - - - (1,106) (1,106)
Other comprehensive
expense:
Foreign currency differences - - - (9) - (9)
--------- --------- --------- ---------- ------------ --------
Total comprehensive
expense for the period - - - (9) (1,106) (1,115)
Share based payment - - - - 448 448
Issue of share capital 802 27,638 - - - 28,440
--------- --------- --------- ---------- ------------ --------
Total contributions
by owners 802 27,638 - - 448 28,888
At 30 June 2022 2,654 27,638 3,702 (5) (6,568) 27,421
--------- --------- --------- ---------- ------------ --------
Consolidated Statement of Cash Flows
For the six months ended 30 June 2022
Unaudited Unaudited
Six months Six months
ended 30 ended 30
June 2022 June 2021
GBP'000 GBP'000
Cash flow from operating activities
Loss for the financial period (1,106) (2,084)
Adjustment for:
Depreciation of property, plant
and equipment 109 39
Impairment of right-of-use assets - 25
Amortisation of intangible assets 10 4
Share based payments including
LTIP credit (1,517) 91
Net finance costs (63) (3)
Taxation credit - (5)
Changes in working capital:
Increase in inventories (1,807) (972)
Increase in trade and other receivables (1,381) (204)
Increase in trade and other payables 742 2,896
---------------- ------------
Cash used in operations (5,013) (213)
Income tax received 143 5
---------------- ------------
Net cash used in operating activities (4,870) (208)
---------------- ------------
Cash flow from investing activities
Current asset investments made (21,000) -
(in bank term
deposits)
Purchase of property, plant and
equipment (129) (59)
Capital grants received - 117
Purchase of intangible assets (354) (315)
Net cash used in investing activities (21,483) (257)
---------------- ------------
Cash flow from financing activities
Issue of share capital net of 28,440 -
issue costs (note 11)
Cash proceeds from financial asset
held - 400
Related party loan repaid (note (382) -
12)
Interest received 91 6
Interest paid (28) (3)
Payment of lease liabilities (73) (59)
Net cash generated from financing
activities 28,048 344
------------ ------------
Increase/(decrease) in cash and
cash equivalents 1,695 (121)
------------ ------------
Net cash and cash equivalents
at beginning of the period 480 2,937
Net cash and cash equivalents
at end of the period (all cash
balances) 2,175 2,816
------------ ------------
Notes to the condensed interim financial statements f or the six
months ended 30 June 2022
1. Corporate information
Clean Power Hydrogen plc is a public company incorporated in the
United Kingdom and listed on the Alternative Investment Market. The
registered address is Unit D Parkside Business Park, Spinners Road,
Doncaster, England, DN2 4BL. The principal activity of the company
and its subsidiaries (the 'Group') is the development of a patented
method of hydrogen and oxygen production together with the
development of a gas separation technique which enables hydrogen to
be produced as 'Green Hydrogen' and oxygen to medical grade
purity.
2. Basis of preparation
This unaudited condensed consolidated interim financial
information for the six months ended 30 June 2022 and 30 June 2021
has been prepared in accordance with IFRS as adopted by the United
Kingdom including IAS 34 'Interim Financial Reporting'.
The accounting policies applied by the Group include those as
set out in the financial statements for the subsidiary company,
Clean Power Hydrogen Group Limited ('CPHGL'), for the year ended 31
December 2021 and are consistent with those to be used by the Group
in its next financial statements for the year ending 31 December
2022. In addition to the policies presented in the 2021 financial
statements, the Group will apply the policies below applicable to
consolidated financial statements and the Company becoming the
parent company for Clean Power Hydrogen Group Limited and to the
accounting for term deposits of cash. There are no new standards,
interpretations and amendments which are not yet effective in these
financial statements, expected to have a material effect on the
Group's future financial statements.
The financial information does not contain all of the
information that is required to be disclosed in a full set of IFRS
financial statements. The financial information for the six months
ended 30 June 2022 and 30 June 2021 is unreviewed and unaudited and
does not constitute the Group or Company's statutory financial
statements for those periods.
The comparative financial information for the full year ended 31
December 2021 has, however, been derived from the audited statutory
financial statements for Clean Power Hydrogen Group Limited for
that period. A copy of those statutory financial statements has
been delivered to the Registrar of Companies. The auditor's report
on those accounts was unqualified and did not contain a statement
under section 498(2)-(3) of the Companies Act 2006.
These policies have been applied consistently to all periods
presented, unless otherwise stated.
The interim financial information has been prepared under the
historical cost convention with the exception of the fair values
applied in accounting for share based payments. The financial
information and the notes to the historical financial information
are presented in thousands of pounds sterling ('GBP'000'), the
functional and presentation currency of the Group, except where
otherwise indicated.
Merger accounting and consolidated financial statements
The Company was incorporated on 19 August 2021 with one GBP0.01
ordinary share and on 1 February 2022, became the Group parent
company when it issued 185,267,700 GBP0.01 ordinary shares in
exchange for all the ordinary shares in CPHGL. In addition,
warrants and options over ordinary shares in CPHGL were converted,
on equivalent terms, to warrants and options over 26,911,940 shares
in the Company. This is considered not to be a business combination
within the scope of IFRS3. This is a key judgement, and as a
transaction where there was no change in the shareholders or
holdings, is accordingly accounted for using merger accounting with
no change in the book values of assets and liabilities and no fair
value accounting applied.
The consolidated financial statements present the results of the
Company and its subsidiaries ("the Group") as if they have always
formed a single group. Intercompany transactions and balances
between Group companies are therefore eliminated in full. The share
capital presented is that of Clean Power Hydrogen plc with the
difference on elimination of CPHGL's capital being shown as a
merger reserve.
A subsidiary is an entity over which the Group has control. The
Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the
entity.
Current asset investments
Cash and cash equivalents comprise cash on hand and demand
deposits, together with other short term, highly liquid investments
that are readily convertible into known amounts of cash and are
subject to an insignificant risk of changes in value. Deposits of
cash with banks that are subject to maturity terms of more than 90
days are presented as current asset investments.
Going concern
The directors have considered the principal risks and
uncertainties facing the business, along with the Group's
objectives, policies and processes for managing its exposure to
financial risk. In making this assessment the directors have
prepared cash flows for the foreseeable future, being a period of
at least 12 months from the expected date of approval of this
financial information.
The Company has successfully raised net proceeds of GBP27.6m
from new equity in order to fund investment in the manufacturing
operations, working capital and continuing development work. The
Group's forecasts and projections to 31 December 2023 based on the
current trends in trading and after taking account of the funds
currently held, show that the company and the Group will be able to
operate within the level of cash reserves.
The directors therefore have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future and consider the going concern basis to
be appropriate.
3. Segmental reporting
IFRS 8, Operating Segments, requires operating segments to be
identified on the basis of internal reports that are regularly
reviewed by the company's chief operating decision maker. The chief
operating decision maker is considered to be the executive
Directors.
The Group at this stage comprises only one operating segment for
the development and sale of equipment for the electrolytic
production of clean hydrogen and oxygen. The operating segments are
monitored by the chief operating decision maker and strategic
decisions are made on the basis of adjusted segment operating
results.
All material assets, liabilities, revenues and expenses are
located in, or derived in, the United Kingdom with the exception of
capitalised patent costs and the related party loan liability in
the Irish subsidiary of CPHGL which are denominated in Euros.
4. Exceptional costs and credits
Six months Six months
ended 30 ended 30
June 2022 June 2021
GBP'000 GBP'000
Cash settled LTIP credit/(expense) 1,965 (1,256)
IPO professional fees and costs (604) -
Accelerated share based payment (374) -
charges
----------- --------------------
987 (1,256)
----------- --------------------
In addition to equity settled share based payment charges in
respect of share options and warrants, the Group, prior to IPO,
also had an LTIP in place with a bonus arrangement payable. Under
the accounting standard this was treated as cash settled. However,
the arrangement has been cancelled as of 10 February 2022 and
replaced with a new equity settled arrangement and conditions. The
prior LTIP was linked to the CPHGL value and share price over the 3
year period to September 2023 with the accruals booked in
non-current liabilities. The charge for the period ended 30 June
2021 was GBP1,256,000 including the related national insurance
costs and the total non-current liability accrued at 30 June 2021
was GBP1,965,000 reflecting a significant increase in the share
price in the period following the receipt of initial customer
orders. The derecognition of this liability has been disclosed as
exceptional in view of its impact on the period and that no cash
was payable in the short term.
The new equity settled arrangement is in respect of options over
up to 10,608,980 shares at an exercise price of GBP0.085 per share.
Exercise from 30 June 2024 of 25% is subject to remaining an
employee and 75% also to sales related performance conditions.
The accrued cash settlement liability has therefore been
credited to the income statement in the period ended 30 June 2022
as an exceptional credit with no liability at the period end
resulting in the significant reduction in non current accruals.
The fair value of the total share based payment in respect of
the new arrangement is GBP1,810,000 which is being expensed over
the vesting period from grant date on 10 February 2022 to the
vesting date of 30 June 2024 to the extent to which options are
expected to vest, with a charge of GBP74,000 in the period to June
2022.
The share options that were in place in 2021 all vested at the
date of the IPO and were exercised or replaced by options
exercisable at any time with a consequential acceleration and
expense of the remaining associated share based payments of
GBP374,000.
As these earlier arrangements were linked to the IPO which is
considered to be a one off event and in view of the amounts these
have been shown as exceptional credits or charges in the period.
The IPO related professional fees and costs directly related to the
IPO of GBP604,000 which have been expensed in the period ended 30
June 2022 have also been disclosed as exceptional.
5. Earnings per share
The calculation of the basic and diluted loss per share is based
on the following data:
Six months Six months
ended 30 ended 30
June 2022 June 2021
GBP'000 GBP'000
Loss for the purpose of basic
earnings per share being net
loss attributable to the shareholders (1,106) (2,084)
-------------- --------------
Six months Six months
ended 30 ended 30
June 2022 June 2021
Number of shares GBP'000 GBP'000
Weighted average number
of ordinary shares for the
purposes of basic earnings
per share 245,053,907 183,302,694
--------------
The weighted average is calculated applying the equivalent
number of Clean Power Hydrogen plc shares to each period.
There is no dilutive effect on a loss. There are potentially
dilutive options in place over 24,035,420 ordinary shares at 30
June 2022.
6. Intangible fixed assets
Development Patents Software Total
costs GBP'000
GBP'000 GBP'000 GBP'000
Cost
At 31 December 2021 1,060 123 17 1,200
Additions 297 23 34 354
Foreign exchange movements - 12 - 12
----------------------------- ----------- -------- -------- --------
At 30 June 2022 1,357 158 51 1,566
----------------------------- ----------- -------- -------- --------
Accumulated depreciation
At 31 December 2021 - 7 17 24
Charge for the period - 6 4 10
Foreign exchange movements - 5 - 5
----------------------------- ----------- -------- -------- --------
At 30 June 2022 - 18 21 39
----------------------------- ----------- -------- -------- --------
Net book amount
At 30 June 2022 1,357 140 30 1,527
----------------------------- ----------- -------- -------- --------
At 31 December 2021 1,060 116 - 1,176
----------------------------- ----------- -------- -------- --------
7. Inventories
30 31 December
June 2022 2021
GBP'000 GBP'000
Raw materials and consumables 570 9
Work in progress 3,319 2,073
----------- ------------
3,889 2,082
----------- ------------
8. Trade and other receivables
30 31 December
June 2022 2021
GBP'000 GBP'000
Current
Other receivables 688 282
Prepayments 1,397 422
----------- ------------
2,085 704
----------- ------------
Non-current
Other receivables 120 120
----------- ------------
At 30 June 2022, prepayments include GBP1.1m of payments made in
advance to suppliers.
9. Current asset investments
The cash raised from the IPO has been placed in longer term bank
deposits where it is not forecast to be needed in the short term,
and in accordance with the IFRS accounting policy, this GBP21m of
bank deposits is shown in current asset investments.
10. Trade and other payables
30 31 December
June 2022 2021
GBP'000 GBP'000
Current
Trade payables 557 376
Other payables 48 14
Taxation and social security
costs 109 48
Accruals 180 97
Deferred income 2,636 2,237
----------- ------------
3,530 2,772
----------- ------------
Non-current
Accruals - 1,965
Deferred income 278 278
----------- ------------
278 2,243
----------- ------------
GBP2.6m of the deferred income relates to advance payments from
customers (2021: GBP2.1m).
11. Share capital
The movements in the Company's share capital were as
follows:
Number Nominal Share premium
of GBP0.01
shares
GBP'000 GBP'000
One GBP1 share issued on incorporation, 100 - -
subdivided into 100 GBP0.01 shares
Shares issued in exchange for
CPHGL shares 185,267,700 1,852 -
Exercise of warrants 2,075,280 21 75
Exercise of options 11,410,220 114 285
Placing shares issued at GBP0.45
each 66,666,667 667 29,333
Share issue costs - - (2,055)
------------ -------- --------------
268,419,967 2,654 27,638
------------ -------- --------------
The issue of shares resulted in a share premium of GBP27,638,000
(net of GBP2,055,000 of share issue costs incurred).
The issue of shares with a nominal value of GBP1,852,677 in
exchange for the 9,263,385 GBP0.001 shares in CPHGL with a nominal
value of GBP9,263 and share premium of GBP5,545,118 results on
elimination of the difference in a credit to a merger reserve of
GBP3,701,704 in accordance with the merger accounting principles as
set out in note 2.
12. Related party transactions
A loan advanced to the group of GBP382,000 at 31 December 2021
(30 June 2021: GBP387,000) from Streamstown Mouldings Limited,
incorporated in the Republic of Ireland and controlled by Joe
Scott, a director of the company was interest free with no fixed
repayment terms. This loan was fully repaid in February 2022.
Directors remuneration during the 6 month period ended 30 June 2022
amounted to GBP367,264.
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END
IR ZZGZLMZLGZZZ
(END) Dow Jones Newswires
September 23, 2022 02:01 ET (06:01 GMT)
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