TIDMEQIP
RNS Number : 0739A
Equipmake Holdings PLC
18 January 2024
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
18 January 2024
EQUIPMAKE HOLDINGS PLC
("Equipmake" or the "Company")
RESULTS FOR THE SIX MONTHSED 30 NOVEMBER 2023
Equipmake, the UK-based engineering specialist pioneering the
development and production of electrification products across the
automotive, aerospace, bus, coach and off-highway industries, is
pleased to announce its unaudited results for the six-month period
ended 30 November 2023 ("H1 FY24") and a trading update for the
financial year ending May 2024 ("FY24").
Financial Highlights
-- H1 FY24 revenue (including grants) of GBP2.07m represents a 97% year-on-year increase (H1 FY23: GBP1.05m).
-- Improvement in gross margins for repowered vehicles reported in Powertrain (inc. integration) (H1 FY24: 9.2%,
full year FY23: -12.9% gross loss), reflects initial progress on the cost reduction initiatives that are expected
to deliver further significant margin improvements in the near term.
-- Operating losses of GBP2.97m, (H1 FY23: loss of GBP2.08m before exceptional items). The increase in
administrative costs are aligned with the Company's financial plan and reflect the expansion of the business
since the IPO in July 2022.
-- Contracted order book1 of GBP11.17m as of 17 January 2024.
-- Investment in tangible fixed assets and product development of GBP1.33m.
-- Cash as of 30 November 23 was GBP3.91m (30 November 22: GBP7.44m).
Operational Highlights
-- Delivered seven repowered buses to First Group, increasing the in-service fleet to 12 vehicles, meeting all
operational KPIs.
-- Secured new bus re-powering orders totalling GBP3.23m from Newport Transport and Big Bus Tours.
-- Commenced production-intent motor/inverter development project with Perkins Engines Company Ltd ("Perkins") (a
wholly owned subsidiary of Caterpillar Inc., a global OEM leader in the off-road market), securing up to GBP3.24m
of associated government grant funding through the Advanced Propulsion Centre UK ("APC") over the
three-and-a-half-year life of the project.
-- Secured an order from a global specialist vehicle OEM for GBP0.56m to integrate the Company's powertrain into an
airside operational vehicle.
-- Additional facility of 50,000 sq. ft fully operational, including relocation of vehicle repowering team.
Trading update
Since the end of H1 FY24, Equipmake has:
-- Secured a second order from Big Bus Tours for a further 10 buses, totalling GBP1.75m.
-- Secured a new order for GBP0.72m for a production-intent development project with H55, further supporting
aerospace sector growth.
-- Secured a second order from a global specialist vehicle OEM for GBP0.4M to provide 2 EV powertrains for airside
operational vehicles.
-- Strengthened the Executive team and Board with the appointment of Dr Nick Moelders as COO.
-- Increased the pipeline of opportunities to enter US electric vehicle ("EV") markets, through a partnership
models.
Whilst our order pipeline remains strong and our cost reduction
initiatives remain on target to deliver the anticipated gross
margin improvements, there have been some delays in implementation
due to operational and supply chain challenges. As a result, the
Company has taken a prudent approach to its production ramp up and
anticipates revenue for the full financial year being below market
expectations, however strong cost control measures mean that
operating losses are expected to be broadly in line with market
expectations.
(1) The contracted orderbook is orders that have been contracted
but where revenue hasn't been recognised.
Commenting of the results and trading update Ian Foley, CEO of
Equipmake said:
"I am pleased to share an update on our progress on delivering
our ambitious strategy, as laid out originally at the time of our
initial public offering in July 2022. We continue to see excellent
demand for the leading-edge electric vehicle ("EV) products and
integrated solutions that we can supply. Our half-year results
demonstrate strong progress on our journey to building revenue and
operational profitability with revenue in this half year of
GBP2.1m, being 97% ahead of the equivalent period in FY23. We are
increasing gross margins on repowering vehicles, whilst also
investing in an additional facility and adding to our operations
and sales teams. We are anticipating strong revenue growth in FY24
vs FY23, however we are anticipating this being lower than our
previous revenue expectations for the full year.
"As we have built our business over this interim period, we have
been judicial in our approach to new opportunities, ensuring that
we prioritise those directly in our target sectors (both end market
and geography) and those that are most complementary in the nearer
term with our existing product offering. Additionally, we have
taken a view on opportunities that could build short-term revenue
but would at this time not deliver the margins we require, ahead of
our cost reduction initiatives being materially delivered by the
end of FY24."
CEO Statement
A key tenet of our value proposition has always been our
state-of-the-art products, developed from 20 years of experience,
that work seamlessly as an integrated EV solution for our
customers. This provides a strong competitive positioning for those
very substantial markets where customers have specific needs to
repower from ICE, or to develop new product, that requires proven,
expertly engineered EV product in what remains an emerging field of
technology. In this interim period, we have not only secured
substantial new orders from new customers, but also extended our
capacity and in-house capabilities through targeted investment and
driven hard on productionising to realise unit cost reductions that
are already beginning to have an impact.
Strengthening the Leadership Team
I was delighted earlier this month to announce the appointment
of Dr Nick Moelders to the Board as COO, replacing James Bishop.
Nick brings a wealth of proven delivery capability in our sector,
as well as significant knowledge and network in the US market.
In his most recent role, Nick led the development and scaling to
production of the electrification division of Sensata, a $5bn
market cap Tier 1 and 2 sensor business. This is the latest step of
an ongoing process by the Board to ensure the Company has the scope
and scale of leadership talent to deliver its strategy.
Equipmake Strategy
We firmly believe that the world is on an irreversible path to
far greater electrification, and the transport sector is front and
centre of that. The internal combustion engine has dominated this
sector for over 100 years, from micro-mobility to passenger cars,
mass transit and industrial vehicles. All these applications are,
and will continue, transitioning to electrification. Opportunities
abound for those companies that offer proven, high quality EV
products and systems that are fit for purpose. The overall
transport market for electrification is enormous, and the
sub-sectors of that, including mass transit (bus & coach),
industrial (generally off-road) and aerospace each represent very
significant market segments, in their own rights. Even when further
segmented into new vehicles and solutions to repower existing
vehicles - necessary in many sectors to meet new emission targets
in time - the addressable markets remain enormous. These markets
are our North Star, and we think carefully about how we will be
successful in our chosen ones, using common core products and Zero
Emission Drivetrain solutions from our established portfolio.
The adoption of many new technologies follows a well-researched
"S curve", with 3 phases: early adoption then rapid acceleration,
followed by maturity. These periods of new technology adoption
often result in existential crises for incumbents and create
opportunities for new entrants who can think differently, and
deliver real product, when it is needed. One particular feature of
large incumbents, and why they often struggle, is their need to
operate out-dated facilities and supply chain models which attempt
to compromise customers' needs into existing business models and
product solutions. This is the advantage that new entrants,
particularly those with vertically integrated product solutions
like ours that are designed to meet today's customers' needs, bring
to the competitive landscape. The strong value proposition of the
integrated solutions approach we have is substantial and worthy of
highlight. We design, engineer and manufacture our own motors,
inverters, control units and other key components in house,
providing us not only with huge flexibility to meet our customers'
requirements, but also strong cost competitive advantage. Many of
our competitors purchase these components externally at retail
prices and consolidate them into their "solutions". The economics
of these operating models are materially different, providing a
distinct cost and flexibility advantage to Equipmake, something we
increasingly see in our conversations with customers.
Our long-established presence in the EV sector, delivering
products for many years into different end markets has prepared us
well for scaling our activities, as the adoption cycle moved from
early adoption into rapid acceleration. We are addressing the
challenges of driving costs from our products as volume has
increased and have also proven our ability to consistently deliver
high quality, customer-ready products that literally hit the ground
running. Our market-leading uptime within the buses we have
repowered to date is a strong testament to this, as are the repeat
orders we are seeing across our customer base. Building the
business does take time, and creating the customer relationships
and driving product costs down also consumes time and other
resources on the path to true scaling.
We are seeing our strategy play out as anticipated, although
taking a little longer in this phase than we had originally
planned, as we became more selective in the opportunities we pursue
whilst we ensured our product costs and manufacturing capabilities
were ready for the next phase. We have successfully built relations
(and taken initial orders) with several global customers and,
whilst this has taken some time, the future business potential from
these customers is very significant.
Vehicle Repowering and Original Equipment supply - Equipmake
positioning
Repowering is the process of converting an existing vehicle
(usually powered via an ICE) to a Zero Emission Drivetrain powered
vehicle. Original Equipment ("OE") supply is the supply of EV
components or wider systems to customers that manufacture new
vehicles.
Equipmake is addressing both these market opportunities in
particular sectors, within repowering most notably bus, coach and
industrial vehicles, with OE adding aerospace as a further
market.
Repowering enables us to address substantial markets that exist
today and that we believe will continue to grow for many years. It
provides the opportunity to prove our products in multiple
real-world uses, build our knowledge, customer base and reputation.
Examples are our repowering with First Group (13 vehicles), Big Bus
Tours (now 20), and Newport Transport (8).
Simultaneously, we are building our capability and product
offering to scale into the OE market. Our recent announcement with
Perkins, where we are now developing motor and inverter products
for potential future OE application, is a recent example. Perkins
is a wholly owned subsidiary of Caterpillar, the world's largest
off-road vehicle manufacturer. Perkins specialise in the supply of
diesel engines for niche off road applications, manufacturing
200,000 units per annum at their Peterborough factory. Under the
terms of our contract, Equipmake will design and manufacture
bespoke motors and inverters for a "drop in" replacement for a
diesel engine. Under this project Equipmake will develop a bespoke
motor / inverter which will be integrated by Perkins into a hybrid
system. The project is part funded with a grant to Equipmake of up
to GBP3.2m from the Advanced Propulsion Centre. The target is to
begin production in 2028.
Prior to awarding this project, Caterpillar undertook 12 months'
due diligence comparing Equipmake technology and production
readiness with competitors.
A further example of our expanding product offering is our
presence in the EV Fire Truck market, where we supply Emergency
One, the largest Fire Truck manufacturer in the UK (80% UK market
share). Through this relationship we have delivered a complete
drivetrain for REV Group, the second largest manufacturer of Fire
Trucks in the US. Emergency One are marketing their product, with
the Equipmake powertrain, globally, with the first European order
taken. REV Group have begun production delivery in North America
with further orders being taken. A final example is our work with a
Global ground support equipment company to supply a full electric
drivetrain for a special vehicle application. Equipmake's vertical
integration capability was key with the ability to deliver the
project within 6 months.
Other commercial initiatives
Our project to develop an aerospace certified electric motor to
integrate with a full electric powertrain being developed by H55
continues on target. We recently won the next stage of this
contract for GBP0.7m for the development of the production
version.
In May we announced entering into a licence agreement with Sona
Comstar in India. Sona is a leading manufacturer of low voltage
automotive motors, selling over two million units per annum,
including to customers outside India such as General Motors and
Ford. Sona has licenced certain motors and inverters from Equipmake
to support their entry into the high voltage traction market in
India. Their initial focus is buses, and the parties are working to
accelerate the start of production, which is currently targeted by
the end of the 2025 calendar year.
Opportunities in the USA
Following approaches from potential partners we have recently
begun a review of the growing opportunity to supply our products in
the USA, initially focussed on repowering of existing ICE buses.
The opportunity is significant, with appealing economics and
substantial volume of existing vehicles that would be suitable for
repower. There are over 80,000 transit buses in the USA, and almost
500,000 school buses.
Our intention is to leverage our existing IP through high
quality partnerships to address different sectors and territories.
However, if the review deems an alternative approach is more
appropriate, then we will modify our strategy accordingly. We have
identified a number of such partners and evaluation is underway, to
build suitable business and supply chain models that optimise our
economics and manage any execution risks.
In summary, we have successfully completed the delivery of
vehicles into service, the orderbook is building, and interest in
repowering is increasing. We remain confident in achieving our
margin targets. We have signed 2 major Global OEMs as customers and
we are seeing increasing interest in our value proposition.
CFO Statement
The financial performance for H1 of FY24 shows year-on-year
revenue growth (including grants) of 96.5%, including the delivery
of 7 repowered buses into service for First York, taking the
in-service fleet up to 12 buses for this client. We have continued
to invest in collaborative R&D and the funding of the grant
projects secured during the past 12 months has contributed to the
year-on-year revenue growth. Total gross margin for H1 of FY24
includes a GBP157k gross loss on grants due to the partially funded
nature of these match-funded projects. Whilst grant projects are
extremely valuable to the business, funding levels for current
projects is between 50% and 60% of costs incurred, which translates
in a reported gross loss for grant funded projects.
Excluding grants, there was improvement in margin rates across
key product lines but the overall blended gross margin of 14.65%
(H1 FY23: 18.3%) was slightly lower than the previous year, due to
a difference in product mix.
The 34.8% growth in administrative costs is a reflection of the
business expansion and capability development that has taken place
since the IPO in July 2022, including:
-- the addition of a 50,000 sq ft unit to support the production of vehicle repowers,
-- significant investment in headcount. Total headcount increased by 30 people or 37% over the past 12 months
(November 2023: 111, November 2022: 81).
Other operating income, which primarily consists of the gross
RDEC revenue, shows a year-on-year increase of 28.7% and should
continue to compare favourably to prior year figures following the
increase in the RDEC rate from 13% to 20% from April 2023.
During H1, GBP653k of development costs have been capitalised,
reflecting the ongoing investment in products and system
development. The GBP678k investment in tangible fixed assets
relates to plant and machinery for the new production site.
As part of our strategy to manage supply chain risks, we have
invested significantly in stock over the past 12 months. The
GBP1.8m increase since May 23 is primarily to support the delivery
of revenue in the second half of FY24.
The cash balance of GBP3.9m at the end of November (2023) was
aligned with our expectations following the investments made during
the first half of the year.
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 NOVEMBER 2023
Period Ended Period Ended Year Ended
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
Note GBP GBP GBP
Revenue 2 2,072,750 1,054,857 5,053,540
Cost of sales (1,949,576) (823,889) (3,845,263)
Gross profit 123,174 230,968 1,208,277
Administrative expenses (3,267,845) (2,423,063) (5,346,307)
Other operating income 196,801 152,968 280,658
Share based payment charge (26,831) (40,749) (475,321)
Exceptional items - (615,064) (615,064)
Operating loss (2,974,701) (2,694,940) (4,947,757)
Interest receivable and
similar income 35,414 13 16,908
Interest payable and similar
expenses (20,786) (66,346) (86,505)
Loss before taxation (2,960,073) (2,761,273) (5,017,354)
Tax on loss 3 (17,862) (24,775) 185,979
Loss for the period (2,977,935) (2,786,048) (4,831,375)
============= ============= ============
Total comprehensive income
for the period (2,977,935) (2,786,048) (4,831,375)
============= ============= ============
Loss for the period attributable
to:
Non--controlling interests -- -- --
Owners of the parent Company (2,977,935) (2,786,048) (4,831,375)
(2,977,935) (2,786,048) (4,831,375)
============= ============= ============
Basic loss per share in
pence 5 (0.3) (0.4) (0.6)
INTERIM CONSOLIDATED BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
Note GBP GBP GBP
Fixed assets
Intangible assets 1,390,816 460,418 783,037
Tangible assets 1,286,999 604,516 772,681
2,677,815 1,064,934 1,555,718
Current assets
Stocks 4,743,020 1,638,213 2,958,325
Debtors: amounts falling due
within one year 2,418,113 1,820,115 4,501,978
Cash at bank and in hand 3,913,331 7,442,678 6,999,686
11,074,464 10,901,006 14,459,989
Creditors: amounts falling
due within one year (2,514,085) (2,047,254) (1,957,276)
Net current (liabilities)/assets 8,560,379 8,853,752 12,502,713
Total assets less current
liabilities 11,238,194 9,918,686 14,058,431
Creditors: amounts falling
due after more than one year (385,772) (328,853) (255,183)
Provisions for liabilities
Other provisions - (99,080) -
Net (liabilities)/assets 10,852,422 9,490,753 13,803,248
============= ============= =============
Capital and reserves
Called up share capital 4 95,101 82,353 94,823
Share premium 19,128,427 13,217,647 19,128,427
Other reserves 5,748,311 5,748,311 5,748,311
Profit and loss account (15,195,796) (10,172,534) (12,217,861)
Share-based payments reserve 1,076,379 614,976 1,049,548
Equity attributable to owners
of the parent Company 10,852,422 9,490,753 13,803,248
Non--controlling interests - - -
10,852,422 9,490,753 13,803,248
============= ============= =============
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 NOVEMBER 2023
Called Share Other Profit Share-based Equity Non-- Total
up premium reserves and loss payments attributable controlling equity
share account reserve to owners interests
capital of parent
Company
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 June 2023
(Audited) 94,823 19,128,427 5,748,311 (12,217,861) 1,049,548 13,803,248 - 13,803,248
Total
comprehensive
income
for the year
Loss for the
period - - - (2,977,935) - (2,977,935) - (2,977,935)
Issue of
shares 278 - - - - 278 - 278
Share-based
payments
movement - - - - 26,831 26,831 - 26,831
At 30 November
2023
(Unaudited) 95,101 19,128,427 5,748,311 (15,195,796) 1,076,379 10,852,422 - 10,852,422
======== =========== ========== ============= ============ ============= ============== ============
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 NOVEMBER 2022
Called Share Other Profit Share-based Equity Non-- Total
up premium reserves and loss payments attributable controlling equity
share account reserve to owners interests
capital of parent
Company
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 June
2022
(Audited) 50,000 - 5,748,311 (7,386,486) 574,227 (1,013,948) - (1,013,948)
Total
comprehensive
income
for the year
Loss for the
period -- - -- (2,786,048) - (2,786,048) - (2,786,048)
Loan
conversion 8,824 3,741,176 - -- -- 3,750,000 - 3,750,000
Issue of
shares 23,529 9,976,471 - -- -- 10,000,000 - 10,000,000
Share issue
costs -- (500,000) - -- -- (500,000) - (500,000)
Share-based
payments
movement -- - -- -- 40,749 40,749 - 40,749
At 30
November
2022
(Unaudited) 82,353 13,217,647 5,748,311 (10,172,534) 614,976 9,490,753 - 9,490,753
======== =========== ========== ============= ============ ============= ============== ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MAY 2023
Called Share Other Profit Share-based Equity Non-- Total
up premium reserves and loss payments attributable controlling equity
share account reserve to owners interests
capital of parent
Company
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 June
2022
(Audited) 50,000 - 5,748,311 (7,386,486) 574,227 (1,013,948) - (1,013,948)
Total
comprehensive
income
for the year
Loss for the
year - - - (4,831,375) - (4,831,375) - (4,831,375)
Total
transactions
with owners
Loan
conversion 8,824 3,741,176 - - - 3,750,000 - 3,750,000
Issue of
shares 35,999 16,199,001 - - - 16,235,000 - 16,235,000
Share issue
costs - (811,750) - - - (811,750) - (811,750)
Share-based
payments
charge - - - - 475,321 475,321 - 475,321
At 31 May
2023
(Audited) 94,823 19,128,427 5,748,311 (12,217,861) 1,049,548 13,803,248 - 13,803,248
======== =========== ========== ============= ============ ============= ============ ============
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 NOVEMBER 2023
Period Ended Period Ended Year Ended
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Cash flows from operating activities
Loss for the financial year (2,977,935) (2,786,048) (4,831,375)
Adjustments for:
Amortisation of intangible assets 45,381 - 27,380
Depreciation of tangible assets 139,403 83,436 187,108
Loss on disposal of tangible
assets 24,390 (15,617) (14,951)
Interest paid 20,786 66,346 86,505
Interest received (35,414) (13) (16,908)
RDEC Taxation credit (net) (152,709) (105,619) (197,854)
SME R&D credit (17,958) - (232,389)
(Increase)/decrease in stocks (1,784,695) (830,238) (2,150,351)
(Increase)/decrease in debtors 1,834,183 206,230 (2,137,644)
Increase/(decrease) in creditors 511,736 (62,609) (156,025)
Increase/(decrease) in provisions - 55,023 (44,057)
Corporation tax received 435,575 - -
Share--based payments charge 26,831 40,749 475,321
Net cash generated from operating
activities (1,930,426) (3,348,360) (9,005,240)
------------- ------------- ------------
Cash flows from investing activities
Purchase of tangible fixed assets (678,111) (170,696) (443,198)
Sale of tangible fixed assets - 25,500 25,500
Intangible assets - capitalisation
of development costs (653,161) (460,418) (810,417)
Net cash from investing activities (1,331,272) (605,614) (1,228,115)
------------- ------------- ------------
Period Ended Period Ended Year Ended
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Cash flows from financing activities
New finance leases and hire purchase
contracts 255,324 106,779 106,779
Repayment of obligations under
finance leases and hire purchase
contracts (79,662) (68,370) (144,177)
Interest paid (20,786) (17,853) (32,434)
Interest received 20,189 13 3,540
Issue of ordinary shares 278 13,750,000 16,235,000
Conversion of convertible loan - (3,750,000) -
Share issue costs - (500,000) (811,750)
Net cash from financing activities 175,343 9,520,569 15,356,958
Net increase/(decrease) in cash
and cash equivalents (3,086,355) 5,566,595 5,123,603
Cash and cash equivalents at
beginning of year 6,999,686 1,876,083 1,876,083
Cash and cash equivalents at
the end of period 3,913,331 7,422,678 6,999,686
Cash and cash equivalents at
the end of period comprise:
Cash at bank and in hand 3,913,331 7,422,678 6,999,686
3,913,331 7,422,678 6,999,686
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 NOVEMBER 2023
1. Basis of preparation
The group consists of the parent Equipmake Holdings PLC and
subsidiary Equipmake Limited. All group entities are included
within the consolidation.
These interim consolidated financial statements are for the six
months to 30 November 2023. The interim results are not audited and
are not the statutory accounts of the group as defined in section
434 of the Companies Act 2006.
The accounting policies and presentation that have been applied
in preparing the interim consolidated financial statements are
consistent with those applied in the preparation of the group's
annual report and financial statements for the year ended 31 May
2023, which were prepared under FRS 102. These interim consolidated
financial statements should be read in conjunction with the annual
report.
Going concern
These financial statements have been prepared on a going concern
basis. The Directors have reviewed the financial forecasts and have
identified a potential requirement to raise additional funding over
the next 12 months. Whilst the Directors expect that additional
funding can be raised, this presents a material uncertainty which
may cast doubt over the Company's ability to continue as a going
concern and therefore its ability to realise its assets and
discharge its liabilities in the normal course of business. The
financial statements do not reflect any adjustments that would be
required to be made if they were prepared on a basis other than the
going concern basis.
Whilst the Directors acknowledge the uncertainty described
above, they have concluded that on the basis of expected cashflows
and available sources of finance, that the Company will continue as
a going concern for at least 12 months from the date of signing
these financial statements and therefore it remains appropriate to
prepare the financial statements on a going concern basis.
2. Segmental Reporting and Turnover
Segmental information is presented in respect of the Group's
operating segments based on the format that the Group reports to
its chief operating decision maker, for the purpose of allocating
resources and assessing performance. The Group considers that the
chief operating decision maker comprises the Executive Directors of
the business.
The Directors manage the Group as a single business delivering
electric power train solutions across a range of markets.
Information that was made available to the chief operating decision
maker in the reporting period included a split of gross margin by
customer project, and therefore segmental information is presented
along the same lines. Operating segments that share similar
characteristics have been aggregated where the criteria for
aggregation have been met.
Segmental Analysis for the Six Months Ended 30 November
2023 (Unaudited)
Powertrain Powertrain EV Engineering Other Total Grants Total
(inc. (supply components projects (excluding
vehicle only) Grants)
integration)
Turnover 1,260,000 259,048 140,926 251,319 - 1,911,293 161,456 2,072,750
Cost of sales (1,144,584) (216,244) (84,269) (186,204) - (1,631,300) (318,275) (1,949,576)
Gross Margin 115,416 42,804 56,657 65,116 - 279,993 (156,819) 123,174
Administrative
expenses - - - - - - - (3,294,676)
Other operating
income - - - - - - - 196,801
Operating loss - - - - - - - (2,974,701)
Net interest - - - - - - - 14,628
Loss before
taxation - - - - - - - (2,960,073)
Tax on loss - - - - - - - (17,862)
Loss for the
financial
year - - - - - - - (2,977,935)
============= =========== =========== ============ ====== ============ ========== ============
Segmental Analysis for the Year Ended 31 May 2023
(Audited)
Powertrain Powertrain EV Engineering Other Total Grants Total
(inc. (supply components projects (excluding
vehicle only) Grants)
integration)
Turnover 900,000 849,700 1,575,545 1,311,951 300,000 4,937,196 116,344 5,053,540
Cost of sales (1,016,277) (875,551) (956,171) (831,472) - (3,679,471) (165,792) (3,845,263)
Gross Margin (116,277) (25,851) 619,374 480,479 300,000 1,257,725 (49,448) 1,208,277
Administrative
expenses - - - - - - - (6,436,692)
Other operating
income - - - - - - - 280,658
Operating loss - - - - - - - (4,947,757)
Net interest - - - - - - - (69,597)
Loss before
taxation - - - - - - - (5,017,354)
Tax on loss - - - - - - - 185,979
Loss for the
financial
year - - - - - - - (4,831,375)
============= =========== =========== ============ ======== ============ ========== ============
Analysis of turnover by
class of business:
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Powertrain (inc.
vehicle integration) 1,260,000 180,000 900,000
Powertrain (supply
only) 259,048 185,000 849,700
EV components 140,926 434,843 1,575,545
Engineering projects 251,319 209,023 1,311,951
Grants receivable 161,456 45,991 116,344
Other - 300,000
2,072,750 1,054,857 5,053,540
============ ============ ==========
Analysis of turnover by
destination:
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
United Kingdom 1,716,027 361,288 2,550,385
Rest of Europe 299,223 352,904 1,265,000
Asia (exc. Far East) - - 300,000
Rest of world 57,500 340,665 908,955
Far East - - 29,200
2,072,750 1,054,857 5,053,540
============ ============ ==========
3. Taxation
The tax charge has been estimated for the six months to 30
November 2023 based on the anticipated tax rate and estimates of
eligible R&D expenditure against which a research and
development expenditure credit (RDEC) and SME credit can be claimed
for the period. The gross RDEC claim is included within other
operating income and the SME tax credit in taxation.
4. Share Capital
30 November 30 31 May
November
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Allotted, called up and fully paid
951,004,051 Ordinary shares (Nov 2022
- 823,529,409) of GBP0.0001 (Nov 2022:
GBP0.0001) each 95,101 82,353 94,823
============ ============ ==========
The following amendments to Share Capital took place in
the period:
At 30 November 2022 -- Ordinary shares
of GBP0.0001 each 82,353
Share issue - 124,700,000 Ordinary Shares
of GBP0.0001 each 12,470
At 31 May 2023 -- Ordinary shares of
GBP0.0001 each 94,823
Share issue - 2,775,132 Ordinary Shares
of GBP0.0001 each 278
At 30 November 2023 -- Ordinary shares
of GBP0.0001 each 95,101
5. Earnings per share
The calculation of basic loss per share of 0.3 pence for the six
months ended 30 November 2023 is based on the loss for the period
of GBP2,977,935 and the weighted average number of shares in issue
during the period of 948,456,879.
The group was loss-making for all periods presented in these
statements; therefore, the dilutive effect of share options has not
been taken into account in the calculation of diluted earnings per
share, since this would decrease the loss per share for each
reporting period.
6. Share-based payments
The company operates a share-based remuneration scheme for employees,
directors and stakeholders. A charge has been recognised in respect
of employee share options in the period based on the fair value
of the options at the grant date, estimated using the Black Scholes
model.
No new options were granted in the 6 months to 30 November 2023.
30 30 31
November November May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Equity--settled schemes recognised
in the profit or loss for the
period 26,831 40,749 475,321
26,831 40,749 475,321
**ENDS**
For further information, please contact:Equipmake Via St Brides Partners
Ian Foley, Founder and CEO
Steven McGillivray, CFO
Panmure Gordon (Corporate Adviser & Joint Tel: +44 (0) 20 7886
Broker) 2500
James Sinclair-Ford / Freddie Twist
Hugh Rich / Sam Elder
VSA Capital Limited (Joint Broker) Tel: +44 (0) 20 3005
Simon Barton / Simba Khatai / Alex Cabral 5000
St Brides Partners (Financial PR Adviser) Tel: +44 (0) 20 7236
Susie Geliher / Paul Dulieu 1177
equipmake@stbridespartners.co.uk
About Equipmake
Equipmake is the UK-based engineering specialist pioneering the
development and production of electrification products to meet
the needs of the automotive, aerospace and other sectors in support
of the transition from conventional fossil-fuelled to zero-emission
powertrains.
Equipmake is a leader in ultra-high performance electric motors
and complete EV drivetrains and ultra-fast power electronic systems.
As well as developing proprietary technology - such as an ultra-compact,
lightweight high performance spoke motor - it also offers industry-leading
EV consultancy.
Equipmake has developed a vertically integrated solution providing
fully bespoke solutions. The Company has built a significant
pipeline of opportunities, as demand for electric vehicles increases
as part of the global decarbonisation movement.
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END
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