TIDMCWR
RNS Number : 2179I
Ceres Power Holdings plc
20 March 2018
20 March 2018
Ceres Power Holdings plc
Half-yearly report for the six months ended 31 December 2017
Continued commercial progress with new global partners
Ceres Power Holdings plc ("Ceres Power", the "Company" or the
"Group") (AIM: CWR.L), a world leading developer of the
SteelCell(R), a low cost, next generation fuel cell technology,
announces its half-yearly report for the six months ended 31
December 2017.
Phil Caldwell, CEO of Ceres Power said:
"We continue to hit our targets with five world class partners
now in place and more in the pipeline. We are building momentum
with strong revenue growth from new and existing partners. We
expect this trend to continue for the full year and beyond.
Global manufacturers are increasingly looking for alternatives
to conventional combustion engine and power generation technologies
as the trend towards electrification continues. Demand for
technologies such as batteries and fuel cells such as our
SteelCell(R) is growing as can be seen from our commercial
progress.
As we approach commercialisation we are positioning the business
for future growth through investment in our core technology and
additional manufacturing capacity. These are essential steps in
scaling the business to meet the high standards required by our
partners through early stage volumes while also maintaining our
technology leadership position."
Highlights
Continued commercial progress: new partners and repeat business
driving revenue growth
-- Revenue and other operating income for first half year doubled to GBP3.1 million;
-- Fifth partner signed with major European manufacturer
achieving key company milestone, adding to partners including
Cummins, Honda & Nissan;
-- Strong pipeline with two new significant OEMs signed at
Technology Assessment Agreement stage.
Delivery of key customer contract milestones
-- Completed technology transfer with confidential customer to develop a multi-kW CHP product;
-- Achieved major technical milestone with first development of
larger format SteelCell(R) for Cummins and US Dept. of Energy;
-- Secured follow-on agreements with Nissan following delivery
of major milestones on the Electric Vehicle Range Extender
programme;
-- Completed UK field trials supported by the European wide
ene.field programme which confirmed the efficiency, flexibility and
reliability of the SteelCell(R) in real-world conditions.
Maintaining our technology leadership position
-- V5 SteelCell(R) development results show world-leading degradation rates;
-- New higher power 5kW stack platform development underway to
address new high volume markets such as the data centre and
automotive applications.
Outlook
-- Maintaining the strong performance in revenue growth for the full year;
-- Field trials of the technology with OEM partner planned later this year;
-- Expect to sign a second strategic partner before the end of
2018 committed to future launch programmes with SteelCell(R);
-- Release of the latest V5 SteelCell(R) technology and first 5 kW stacks to customers;
-- Investment in additional UK manufacturing capacity to meet
near-term customer demand and exploring longer term manufacturing
partnerships.
Financial Highlights:
Six months Six months
ended 31 ended 31
December December
2017 (unaudited) 2016 (unaudited)
GBP'000 GBP'000
------------------ ------------------
Total revenue and other operating
income, comprising: 3,082 1,551
Revenue 2,625 1,026
Other operating income 457 525
Operating loss (6,184) (6,242)
Equity free cash flow (1) (4,119) (4,176)
Net cash and short-term investments 13,165 22,174
1 Equity free cash outflow (EFCF) is the net change in cash and
cash equivalents in the period (GBP5 million) less net cash
generated from financing activities (GBP0.1 million) less the
movement in short term investments (GBP9 million)
For further information please contact:
Ceres Power Holdings plc
Phil Caldwell, CEO
Richard Preston, CFO
Dan Caesar, Communications & Marketing
Director +44 (0)1403 273 463
Zeus Capital - Nominated Adviser
and Joint Broker
Giles Balleny / Andrew Jones /
Hugh Kingsmill Moore +44 (0)20 3829 5000
Berenberg - Joint Broker
Ben Wright / Mark Whitmore / Laure
Fine +44 (0)20 3207 7800
Powerscourt
Peter Ogden/Andy Jones +44 (0) 20 7250 1446
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
About Ceres Power
Ceres Power is a world leader in low cost, next generation fuel
cell technology for use in distributed power products that reduce
operating costs, lower CO(2) , SOx and NOx emissions, increase
efficiency and improve energy security. The Ceres Power unique
patented SteelCell(R) technology generates power from widely
available fuels at high efficiency and is manufactured using
standard processing equipment and conventional materials such as
steel, meaning that it can be mass produced at an affordable price
for domestic and business use. Ceres Power offer its partners the
opportunity to develop power systems and products using its unique
SteelCell(R) technology and know-how, combined with the opportunity
to supply the SteelCell(R) in volume through its manufacturing
partners. For further information please visit:
http://www.cerespower.com/
Chief Executive's statement
Summary
We have continued to grow the business in the first half of this
year adding new partners and progressing with existing partners
towards commercialisation. We completed the key milestone we set
for the business of having five OEM partners at the development
stage by the end of 2017 with final signature in early January and
we expect to secure our other key objective of securing a second
partner in 2018 committed to a future launch programme with the
Steel Cell (R) technology.
We continue to meet key customer milestones and this has led to
repeat business with several of our partners, leading to revenue
and other operating income approximately doubling half year on half
year to GBP3.1 million compared with GBP1.6 million last year. We
expect this trend to carry on to the full year. This will come from
continuing to deliver against our current customer programmes and
progressing new partners to the development stage and beyond.
In September we successfully completed the formal trials of
Ceres Power's own prototype home system as part of the European
ene.field programme. The tests demonstrated that the 1kW units
delivered not only the majority of a home's power needs and hot
water, offering lower energy bills and carbon footprint, but also
exported sufficient energy to charge an Electric Vehicle. These
results show fuel cells could be a key enabler for localised grid
reinforcement to support the roll out of electric vehicles.
Later this year we anticipate field testing the SteelCell(R)
technology outside of the UK as we progress with OEM partners
towards commercial launch programmes.
We have made significant technical progress with our V5
technology which will be released to customers later this year. The
results from the in-house testing look promising enabling lower
degradation rates and higher efficiencies that put us amongst the
best in the industry. The new 5kW stack platform development is
underway and this is a key new platform supporting our work with
Nissan and Cummins to address higher power high volume markets such
as the data centre and automotive applications. The 5kW stack
should deliver higher volumetric power density and lower costs
through economies of scale compared with our existing 1kW stack
platform.
Due to the increased demand, we have started to invest in
additional manufacturing capacity to meet near term demand from our
growing customer volumes while also enabling us to develop the
manufacturing processes and capability for larger area cells and
stacks for our 5kW programme. This is a key step in maximising the
value we have in our manufacturing IP. We are exploring
opportunities to scale the business through manufacturing partners
to realise the full potential of the SteelCell(R) technology and we
are discussing manufacturing partnerships with several potential
partners.
At the half year we have a good cash position and we continue to
grow revenues from our OEM engineering programmes at good margins,
but we are at a stage where we will look for further growth capital
to meet the Group's funding requirements and support our investment
in near term manufacturing capacity to help facilitate customer
launch programmes. We are therefore considering, amongst other
means, strategic investment from potential partners to accelerate
the business to commercialisation.
Macro environment
We are benefiting from two major industries being disrupted
simultaneously which is leading to a convergence of our energy
systems and a need to adopt new distributed power generation
technologies.
The first disruption is in the conventional utility sector. With
the cost of renewable energy and battery storage falling it has
become increasingly difficult to justify the levels of investment
in large scale central power generation, which are often expensive
and have to be government backed. This is driving more interest in
counties such as Japan, South Korea, Germany and China towards
highly efficient distributed generation that can balance the
intermittency of renewables without relying on large investments
and lengthy paybacks.
The second major disruption is in the automotive sector. Here we
are seeing regulation increasing pressure to move away from
conventional petrol and diesel engines towards electrification.
This is predominantly driven by the need to improve air quality for
health issues and this is particularly being driven by regulation
at regional levels in large cities such as Paris and London and at
national levels in places such as China. This is a significant
threat to the established players in the industry who are having to
innovate and adopt new technologies such as electrochemical devices
like batteries and fuel cells, which convert fuel to power with
very high efficiency and near zero SOx, NOx and particulates.
As we move towards a higher renewables mix and more vehicle
electrification we start to see that these trends will place more
pressure on the existing power grid. The SteelCell(R) is one of the
few technologies that can provide high efficient, low to near zero
emission power generation that can reinforce the grid, offering a
practical cost-effective way to reinforce power distribution
locally. It could also provide a hybrid solution to help
decarbonise larger EV's such as light commercial vehicles.
The SteelCell(R) technology is increasingly attractive to OEMs
in the power generation and automotive sectors as it provides a
fuel flexible alternative to combustion engine technologies that
can run with our existing fuel infrastructure such as Natural Gas,
LPG, Biofuels and also use future fuels such as hydrogen. It
becomes a "no regrets" option as a potential alternative to the
combustion engine for our targeted markets of automotive and power
generation applications. Using a modular approach with our 5kW
stack platform we can now address applications in the power range
from 5kW to several hundred kW which has significantly opened up
the market opportunities for the SteelCell(R).
Commercial
Fifth OEM partner
As a company we set ourselves the target of signing five global
OEM partners by the end of 2017 and it was therefore particularly
pleasing to meet this milestone by signing our fifth partner, our
first European based OEM, early in the New Year. This strategic
relationship is the first step in a potential collaboration which
could include joint system development, stack development and
manufacturing. The initial focus is on developing prototype
multi-kilowatt power systems for several potential
applications.
Delivery of key customer contract milestones
During the period Ceres completed the technology transfer with
its commercially confidential customer on time and on budget. This
has enabled the OEM partner to develop a multi-kW combined heat and
power product.
As part of our work for Cummins and the US Department of Energy,
where we are developing a 10kW power-only system, initially to
target data centres, we achieved a key milestone in the period -
the development of a larger format of the SteelCell(R) and the 5kW
stack platform, both of which are applicable for higher power
applications.
Ceres continues to meet milestones on the Electric Vehicle Range
Extender programme we announced in June 2016, and we have secured
follow-on agreements with Nissan.
In September we completed the formal programme of field trials
in the UK which were supported by the European wide ene.field
programme. These successful trials confirmed the efficiency,
flexibility and reliability of the SteelCell(R) in real-world
conditions and this has further enhanced our reputation with
customers.
As we progress with OEM customers we are planning further field
trials of the SteelCell(R) technology in the second half of
2018.
We continue to grow our commercial pipeline and have signed two
new global OEMs at the Technology Assessment stage in the past few
months and we are confident of signing additional partners this
year.
Technology
In order to support the business strategy of targeting higher
power high growth applications such as data centres, commercial
scale power and automotive applications, the business has invested
in the past year in both its core cell technology V5 and a new
stack platform at the 5kW power level which is modular and enables
power systems from 5kW to several hundred kWs to be to be developed
by OEM partners.
With more than a doubling in power density - the amount of power
generated per unit volume - the 5kW configuration of the
SteelCell(R) has better economies of scale compared with Ceres
Power's 1kW platform. Additionally, with the latest V5 SteelCell(R)
technology, target system efficiencies of 60% from fuel in to AC
power out can be achieved while steady state degradation rates have
reduced to approximately <0.2% for every thousand hours of
operation. These results put Ceres Power in-line with the best in
the world but with a highly robust and cost-effective platform.
The unique properties of the SteelCell(R) enable rapid start-up
times, robustness to vibration and repeatedly withstanding
thousands of cycles. These make it commercially viable for
Automotive applications such as range extenders for electric
vehicles and this is not possible with conventional solid oxide
fuel cell technology. This opens up significant opportunities for
global OEMs that need to convert to combustion-free technologies.
These latest advancements are due for customer release later this
year.
Operations
We now have partners in all four of our target sectors and are
beginning to add additional partners in each sector which in turn
is generating more potential volume which is attractive for future
high-volume manufacturing partners.
Due to demand for the SteelCell(R) and the simultaneous
development of larger area cells and stacks the Group is increasing
its near-term manufacturing capacity in the UK and investing
further in its operational capability. This is an interim step to
high volume plants which we still intend to do through licensing
and possibly Joint Ventures and we are in discussions with a number
of potential manufacturing partners.
The intention is to add manufacturing capability at a new site
in the UK, initially at 1MW annual production which can be added to
in phases up to 10MW to match customer demand. We are currently
identifying suitable premises and have placed orders on long lead
time equipment. This initial capacity will be brought up to volume
over the next 18 months. The level of investment in the first phase
of capacity is approximately GBP4m.
Financial
Revenue and other operating income growth over the period has
nearly doubled to GBP3.1m compared to the same period last year. Of
this, income from grants has remained flat and the growth is coming
from revenue from customer programmes which has more than doubled
from GBP1m to GBP2.6m. We expect this uplift to continue into the
full year.
The Group's operating loss of GBP6.2m is the same as H1 last
year and, looking forward to the full year, we expect the operating
loss to be approximately flat compared to the prior year as we
invest the contribution from customer programmes into the growth of
the business. Our operating costs are influenced by the investment
in people - enhancing the Group's operations quality and
manufacturing throughput capabilities.
Our equity free cash outflow(1) of GBP4.1 million in the period
is similar to that in H1 last year (GBP4.2m) and would have been
lower but includes GBP0.4 million of additional capital expenditure
we decided to invest in this half year as we prepare to expand our
manufacturing into additional premises in the second part of the
financial year. We expect the cash outflow for the full year to
increase slightly from that in 2017, primarily due to expected
investments of up to GBP2 million in the new manufacturing
facility, as we will have to invest in advance of the capacity
coming on line.
At 31 December 2017 the Group had GBP13.2m of net cash and
short-term investments on the balance sheet, which is sufficient
for us to make our initial investment in the new manufacturing
facility and secure key commercialisation agreements by the end of
2018. The Group intends to secure additional equity funds before
this time.
The directors are confident that we can access growth capital
when we need to in order to continue to deliver against our
strategy. As well as the Group's strong existing shareholder
backing, we are in discussions with a number of global OEMs, which
could include strategic equity investment into the Company, as well
as significant commercial deals. As set out in note 1 to the
statements, the directors believe that the going concern basis is
appropriate for the preparation of these financial statements.
1 Equity free cash outflow (EFCF) is the net change in cash and
cash equivalents in the period (GBP5 million) less net cash
generated from financing activities (GBP0.1 million) less the
movement in short term investments (GBP9 million)
Outlook
For the year ahead we expect to announce progress in all areas
of the business as we progress towards commercialisation of the
SteelCell(R) with several of our OEM partners. In particular we are
targeting:
-- Maintaining the strong performance in revenue growth for the full year;
-- Field trials of the technology with OEM partner later in 2018;
-- Securing a second strategic partner in 2018 committed to
future launch programmes with the SteelCell (R);
-- Release of the latest V5 SteelCell(R) technology and first 5 kW stacks to customers;
-- Investment in additional UK manufacturing capacity to meet
near-term customer demand and exploring longer term manufacturing
partnerships.
Philip Caldwell
Chief Executive Officer
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER
COMPREHENSIVE INCOME
For the six months ended 31 December 2017
Six months Year
ended ended
31 December 30 June
2017 Six months
ended
31 December 2017
(Unaudited) 2016
(Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Revenue 2,625 1,026 3,119
Cost of sales (1,417) (406) (1,334)
Gross profit 1,208 620 1,785
Other operating
income 457 525 957
Operating costs 2 (7,849) (7,387) (14,264)
Operating loss (6,184) (6,242) (11,522)
Finance income 43 30 89
Loss before taxation (6,141) (6,212) (11,433)
Taxation credit 952 1,044 2,025
Loss for the financial
period / year and
total comprehensive
loss (5,189) (5,168) (9,408)
============= ============== ===========
Losses per GBP0.01
ordinary share
expressed in pence
per share:
Basic and diluted
loss per share 3 (0.51)p (0.63)p (1.00)p
All activities relate to the Group's continuing operations and
the loss for the financial period is fully attributable to the
owners of the parent.
The accompanying notes are an integral part of these
consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
31 December 30 June
2016 (Unaudited) 2017
31 December
2017 (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and
equipment 1,989 2,053 1,913
------------------
Total non-current
assets 1,989 2,053 1,913
Current assets
Inventories 486 - 595
Trade and other receivables
and assets 2,496 2,071 2,462
Derivative financial
instrument 40 14 8
Current tax receivable 891 825 1,805
Short-term investments 6 5,000 16,000 14,000
Cash and cash equivalents 6 8,165 6,174 3,158
------------------ ------------------ ------------
Total current assets 17,078 25,084 22,028
Liabilities
Current liabilities
Trade and other payables (2,367) (2,217) (2,654)
Derivative financial
instrument (1) (110) (8)
Total current liabilities (2,368) (2,327) (2,662)
------------------ ------------------ ------------
Net current assets 14,710 22,757 19,336
Non-current liabilities
Provisions for other
liabilities and charges (838) (806) (828)
------------------ ------------------ ------------
Total non-current
liabilities (838) (806) (828)
------------------
Net assets 15,861 24,004 20,451
================== ================== ============
Equity
Share capital 4 10,158 10,080 10,124
Share premium account 107,441 107,222 107,349
Capital redemption
reserve 3,449 3,449 3,449
Merger reserve 7,463 7,463 7,463
Accumulated losses (112,650) (104,210) (107,934)
Total equity 15,861 24,004 20,451
================== ================== ============
The accompanying notes are an integral part of these
consolidated financial statements.
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2017
Year
ended
30 June
2017
Six months Six months
ended ended
31 December 31 December
2017 2016
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Cash used in operations 5 (5,277) (6,082) (10,822)
Taxation received 1,866 2,216 2,217
------------- ------------- -----------
Net cash used in operating
activities (3,411) (3,866) (8,605)
------------- ------------- -----------
Cash flows from investing
activities
Purchase of property,
plant and equipment (726) (333) (863)
Movement in short-term
investments 9,000 (15,000) (13,000)
Finance income received 43 30 89
------------- ------------- -----------
Net cash generated from
/ (used in) investing
activities 8,317 (15,303) (13,774)
------------- ------------- -----------
Cash flows from financing
activities
Proceeds from issuance
of ordinary shares 126 20,038 20,209
Net expenses from issuance
of ordinary shares - (635) (635)
------------- ------------- -----------
Net cash generated from
financing activities 126 19,403 19,574
Net increase / (decrease)
in cash and cash equivalents 5,032 234 (2,805)
Exchange (losses) /
gains on cash and cash
equivalents (25) (7) 16
------------- ------------- -----------
5,007 227 (2,789)
Cash and cash equivalents
at beginning of period 3,158 5,947 5,947
------------- ------------- -----------
Cash and cash equivalents
at end of period 6 8,165 6,174 3,158
------------- ------------- -----------
The accompanying notes are an integral part of these
consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
Share Capital
Share premium redemption Merger Accumulated
capital account reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July
2016 7,779 90,120 3,449 7,463 (99,524) 9,287
Comprehensive
income
Loss for the
financial
year - - - - (5,168) (5,168)
--------- --------- ------------- --------- ------------ --------
Total comprehensive
loss - - - - (5,168) (5,168)
--------- --------- ------------- --------- ------------ --------
Transactions
with owners
Issue of shares,
net of costs 2,301 17,102 - - - 19,403
--------- --------- ------------- --------- ------------ --------
Share-based
payments charge - - - - 482 482
--------- --------- ------------- --------- ------------ --------
Total transactions
with owners 2,301 17,102 - - 482 19,885
--------- --------- --------- ------------ --------
At 31 December
2016 10,080 107,222 3,449 7,463 (104,210) 24,004
--------- --------- ------------- --------- ------------ --------
Comprehensive
income
Loss for the
financial
year - - - - (4,240) (4,240)
Total comprehensive
loss - - - - (4,240) (4,240)
--------- --------- ------------- --------- ------------ --------
Transactions
with owners
Issue of shares,
net of costs 44 127 - - - 171
Share-based
payments charge - - - - 516 516
Total transactions
with owners 44 127 - - 516 687
--------- --------- ------------- --------- ------------ --------
At 30 June
2017 10,124 107,349 3,449 7,463 (107,934) 20,451
--------- --------- ------------- --------- ------------ --------
Comprehensive
income
Loss for the
financial
year - - - - (5,189) (5,189)
Total comprehensive
loss
Transactions
with owners
Issue of shares,
net of costs 34 92 - - - 126
Share-based
payments charge - - - - 473 473
Total transactions
with owners 34 92 - - 473 599
--------- --------- ------------- --------- ------------ --------
At 31 December
2017 10,158 107,441 3,449 7,463 (112,650) 15,861
--------- --------- ------------- --------- ------------ --------
The accompanying notes are an integral part of these
consolidated financial statements.
Notes to the financial statements for the six months ended 31
December 2017
1. Basis of preparation
This condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU.
The consolidated financial statements of the Group are prepared
on a going concern basis, in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union, the IFRS Interpretations Committee (IFRS-IC) interpretations
and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. The consolidated financial statements have
been prepared on a historical cost basis except that the following
assets and liabilities are stated at their fair value: derivative
financial instruments and financial instruments classified as fair
value through the profit or loss.
The financial information contained in this half-yearly report
is unaudited and does not constitute statutory financial statements
as defined by in Section 434 of the Companies Act 2006. The
financial statements for the year ended 30 June 2017, on which the
auditors gave an unqualified audit opinion, have been filed with
the Registrar of Companies.
The Directors confirm that, to the best of their knowledge, this
condensed set of consolidated financial statements have been
prepared in accordance with the AIM Rules.
The accounting policies adopted are consistent with those of the
financial statements for the year ended 30 June 2017, as described
in those financial statements.
The Group has reported a loss after tax for the 6 months ended
31 December 2017 of GBP5,189,000 and net cash used in operating
activities of GBP3,411,000. At 31 December 2017, it held cash and
cash equivalents and short-term investments of GBP13,165,000. The
directors have prepared annual budgets and cash flow projections
that extend beyond 12 months from the date of this report. Those
projections show that, without securing future funds, the Group may
not have sufficient cash reserves to meet its liabilities as they
fall due and continue as a going concern. Nevertheless, based on
discussions with potential investors, the directors expect that the
Group will raise sufficient equity funds from new strategic
investors and/or financial investors during 2018 to have sufficient
resources to continue for at least 12 months from the date of
approval of these financial statements. The directors have
concluded that the ability to raise additional funds represents a
material uncertainty that may cast significant doubt upon the Group
and Company's ability to continue as a going concern. For all the
above reasons the directors continue to adopt the going concern
basis in preparing the financial statements. The financial
statements do not include the adjustments that would result if the
Group was unable to continue as a going concern.
Notes to the financial statements for the six months ended 31
December 2017 (continued)
2. Operating costs
Operating costs are
split as follows:
Year
ended
30 June
2017
Six months Six months
ended ended
31 December 31 December
2017 (Unaudited) 2016 (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Research and development
costs 5,906 5,434 10,516
Administrative expenses 1,943 2,059 3,907
------------------ ------------------ -----------
7,849 7,493 14,423
Reversal of provision
relating to onerous
lease and property dilapidations - (106) (159)
------------------ ------------------ -----------
7,849 7,387 14,264
================== ================== ===========
3. Loss per share
Six months
ended Year ended
31 December 30 June
2017 (Unaudited) 2017
Six months
ended
31 December
2016 (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Loss for the financial
period attributable
to shareholders (5,189) (5,168) (9,408)
================== ================== ============
Weighted average number
of shares in issue 1,013,765,612 824,447,210 939,762,048
================== ================== ============
Loss per GBP0.01 ordinary
share (basic & diluted) (0.51)p (0.63)p (1.00)p
================== ================== ============
4. Share capital
Ceres Power Holdings plc has called-up share capital totalling
1,015,769,929 GBP0.01 ordinary shares as at 31 December 2017
(1,012,419,929 ordinary shares of GBP0.01 each at 30 June
2017).
During the period 3,350,000 ordinary shares of GBP0.01 each were
issued on the exercise of employee share options.
Notes to the financial statements for the six months ended 31
December 2017 (continued)
5. Cash used in operations
Year ended
30 June
2017
Six months Six months
ended ended
31 December 31 December
2017 (Unaudited) 2016 (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Loss before taxation (6,141) (6,212) (11,433)
Adjustments for:
Other finance income (43) (30) (89)
Depreciation of property,
plant and equipment 650 589 1,259
Share-based payments 473 482 998
Net foreign exchange losses/(gains) 25 (110) (16)
Net change in fair value
of financial instruments
at fair value through profit
and loss (39) 117 21
Operating cash flows before
movements in working capital (5,075) (5,164) (9,260)
Increase in trade and other
receivables and assets (34) (948) (1,353)
Decrease/(increase) in
inventories 109 - (595)
(Decrease)/increase in
trade and other payables (287) 168 502
Increase/(decrease) in
provisions 10 (138) (116)
------------------ ------------------ -----------
Increase in working capital (202) (918) (1,562)
Cash used in operations (5,277) (6,082) (10,822)
================== ================== ===========
Notes to the financial statements for the six months ended 31
December 2017 (continued)
6. Net cash, short-term investments and financial assets
Year
ended
Six months Six months
ended ended
31 December 31 December 30 June
2017 2016 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash at bank and in hand 2,055 3,716 1,354
Money market funds 6,110 2,458 1,804
-------------
Cash and cash equivalents 8,165 6,174 3,158
-------------
Short-term investments
(bank deposits > 3 months) 5,000 16,000 14,000
------------- ------------- -----------
Net cash and short-term
investments 13,165 22,174 17,158
------------- ------------- -----------
The Group typically places surplus funds into pooled money
market funds and bank deposits with durations of up to 12 months.
The Group's treasury policy restricts investments in short-term
sterling money market funds to those which carry short-term credit
ratings of at least two of AAAm (Standard & Poor's), Aaa/MR1+
(Moody's) and AAA V1+ (Fitch) and deposits with banks with minimum
long-term rating of A/A-/A3 and short-term rating of F-1/A-2/P-2
for banks which the UK Government holds less than 10% ordinary
equity.
INDEPENDENT REVIEW REPORT TO CERES POWER HOLDINGS PLC
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly report for the six
months ended 31 December 2017 which comprises Consolidated
statement of profit and loss and other comprehensive income,
Consolidated statement of financial position, Consolidated cash
flow statement, Consolidated statements of changes in equity and
the related explanatory notes.
Based on our review, apart from the material uncertainty
documented below, nothing has come to our attention that causes us
to believe that the condensed set of financial statements in the
half-yearly report for the six months ended 31 December 2017 is not
prepared, in all material respects, in accordance with IAS 34
Interim Financial Reporting as adopted by the EU and the AIM
Rules.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the
half-yearly report and consider whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing the half-yearly report in accordance with the AIM
Rules.
The annual financial statements of the group are prepared in
accordance with International Financial Reporting Standards as
adopted by the EU. The directors are responsible for preparing the
condensed set of financial statements included in the half-yearly
financial report in accordance with IAS 34 as adopted by the
EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly report
based on our review
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement. Our review has been undertaken so that we
might state to the company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Material uncertainty related to going concern
We draw attention to note 1 to the financial statements which
indicates that the Group is dependent on raising additional equity
funds in the 2018 calendar year in order to finance the Group's
operations and to continue as going concern. However, there can be
no assurance that the Group will be able to obtain adequate finance
through a fundraising in the future. These events and conditions,
along with the other matters explained in note 1, constitute a
material uncertainty that may cast significant doubt on the Group's
ability to continue as a going concern. Our conclusion is not
modified in respect of this matter.
Gemma Hancock
for and on behalf of KPMG LLP
Chartered Accountants
1 Forest Gate
Brighton Road
Crawley
RH11 9PT
20/03/2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DDGDXCDBBGIC
(END) Dow Jones Newswires
March 20, 2018 03:01 ET (07:01 GMT)
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