Last checked at 5 Mar 2015 07:00
5th March 2015
CAP-XX Limited
Interim Results for the half-year ended 31 December 2014
CAP-XX Limited, a world leader in the design and manufacture of revolutionary thin-form supercapacitors, which considerably extend the performance of batteries, announces its interim results for the half-year ended 31 December 2014.
Financial Highlights
· Product Sales Revenue of A$ 2.2m up 2% on corresponding half year. The increase represented a volume increase of 5%, average selling prices down by 6% and the strengthening USD contributed 3%. Range of sales opportunities continues to grow in new and emerging markets for supercapacitor applications.
· Net Loss reduced to $0.9m (H12013: A$1.2m) The year on year improvement is result of the improvement in gross margin due to the realisation of operational cost savings, lower administration expenditure and the associated translation benefits from a stronger USD.
· Cash reserves of A$0.5m at the period end (H12013: A$2.7m) which includes the receipt of a tax rebate from the Australian Taxation Office of A$1.2m (2013 A$1.0m).
Operational Highlights
· Engagement with companies in the automotive industry and supply chain is now moving to evaluation phase with and license opportunities currently under negotiation.
· Identified operational cost savings have been delivered and investigations have commenced on Phase II.
· MOU signed with Global Tier-1 Automotive components company for truckStart application.
For further information contact:
CAP-XX Limited | |
Anthony Kongats (Chief Executive Officer) | +61 (0) 2 9428 0139 |
Cenkos Securities (Nominated Adviser and Joint Broker) | |
Stephen Keys/Mark Connelly | +44 (0) 20 7397 1949 |
Allenby Capital Limited (Joint Broker) | |
David Hart/Alex Brearley | +44 (0) 20 3328 5656 |
Kreab (Financial PR) | |
Robert Speed | +44 (0) 20 7074 1800 |
More information is available at www.cap-xx.com
Notes to Editors:
CAP-XX (LSE:CPX) is a world leader in the design and manufacture of thin flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a apace-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com
Chairman's Statement
Product sales revenue of A$2.3m is up 2% over that in the previous year with volumes increasing by 5%, and average selling prices down by 6%. The operating loss after tax has reduced to $0.9m (H12013: A$1.2m). The year on year improvement is a result of the improvement in gross margin due to the realisation of operational cost savings, lower administration expenditure and associated translation benefits from a stronger US dollar.
As at 31 December 2014, the Company had cash and cash equivalents of A$0.5m (H12013 :A$2.7m) which includes the receipt of a tax rebate from the Australian Taxation office of A$1.2m (2013:A$1.0m).
As highlighted in the trading update statement on 3 February 2015, the Company has announced:
· the signing of a mutually exclusive memorandum of understanding (MoU) with a North American Global Tier-1 automotive components company, initially for the development of products for the North American truck market;
· that in terms of trading generally, supercapacitor revenues and volume had improved, with demand driven primarily by the wider adoption of CAP-XX's supercapacitor technology in medical and consumer wearables, RFID/logistics support and automated meter reading; and
· highlighted its continued focus on manufacturing cost reduction, which had already resulted in annualised cost savings of approximately US$1 million, with additional savings expected in the subsequent financial year.
The MoU is for the development of CAP-XX's large automotive supercapacitors for a standalone system which can serve both original equipment and aftermarket applications, via potentially replacing one in three or one in four truck batteries with a supercapacitor unit. CAP-XX has produced prototypes of this product under the name 'truckStart'.
The Board believes that CAP-XX's market share within existing electronics markets has been fairly steady, with growth in these markets being modest to date. However, the Board also believes that demand for thin, small devices, such as wearable electronics and growth in energy-harvesting as a power source, will drive rapid growth in these markets. As a consequence, CAP-XX has been seeking to increase the end use of its supercapacitors in multiple high growth markets, including:
· sports gear and small personal medical devices within the wearable electronics field;
· building and industrial control systems and RFID tags within the energy harvesting systems; and
· a variety of metering and telemetry applications.
Large cell markets, such as automotive, have also been growing strongly and CAP-XX now has the prototype large capacity devices required to enter these markets. To date, CAP-XX has engaged with over 20 companies in the automotive industry and supply chain. This activity is now moving towards evaluations and licence opportunities.
Since mid-2014, CAP-XX has achieved significant reductions in production costs and improvements in gross margins. In June 2014, the Board's target was to reduce total production cost by approximately 30 per cent. As at the end of November 2014, savings of 27 per cent. had been achieved. The Board now expects a total production cost reduction of 36 per cent between June 2014 and June 2015 and believes that further savings can be achieved beyond June 2015, including additional raw material cost reductions, which are currently being investigated. The manufacturing cost reduction programme has resulted in material and process improvements, which have already delivered improved product performance. The Board believes that the ongoing programme should deliver numerous further benefits, including:
· allowing CAP-XX to be cost-competitive on higher volume business, whilst increasing the margin contribution; and
· a more focussed product range, which will drive further reductions in production costs and working capital requirements over time.
The Board continues to remain confident that trading for the 2014/15 financial year will continue to better the previous period.
Patrick Elliott
Chairman
4th March 2015
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2014
Consolidated | |||
Half-year 2014 | Half-year 2013 | ||
Currency: Australian Dollars | $ | $ | |
Revenue from sale of goods and services | 2,265,654 | 2,222,376 | |
Cost of sale of goods and services | (1,608,662) | (1,654,152) | |
Gross margin (loss) on sale of goods and services | 656,992 | 568,224 | |
Other revenue | 6,769 | 29,899 | |
Other income | 573,996 | 543,525 | |
General and administrative expenses | (953,764) | (1,138,007) | |
Process and engineering expenses | (299,873) | (221,569) | |
Selling and marketing expenses | (254,982) | (238,784) | |
Research and development expenses | (568,495) | (738,304) | |
Other expenses | (33,747) | (27,114) | |
(Loss) before income tax | (873,104) | (1,222,130) | |
Income tax benefit/(expense) | - | - | |
Net (loss) for the half year | (873,104) | (1,222,130) | |
(Loss) attributable to members of CAP-XX Limited | (873,104) | (1,222,130) | |
Earnings (loss) per share attributable to the ordinary equity holders of the company | Cents | Cents | |
Basic earnings per share | (0.76) | (1.07) | |
Diluted earnings per share | (0.76) | (1.07) | |
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2014
Consolidated |
| |||
31 December 2014 | 30 June 2014 | 31 December 2013 | ||
Currency: Australian Dollars | $ | $ | $ | |
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 546,466 | 900,397 | 2,729,595 | |
Receivables | 594,730 | 558,805 | 567,514 | |
Inventories | 934,914 | 770,626 | 678,940 | |
Other | 531,821 | 1,244,045 | 586,096 | |
Total current assets | 2,607,931 | 3,473,873 | 4,562,145 | |
Non-current assets | ||||
Property, plant and equipment | 375,147 | 377,163 | 394,116 | |
Other | 236,507 | 236,507 | 236,507 | |
Total non-current assets | 611,654 | 613,670 | 630,623 | |
Total assets | 3,219,585 | 4,087,543 | 5,192,768 | |
LIABILITIES | ||||
Current liabilities | ||||
Payables | 785,684 | 829,188 | 749,542 | |
Provisions | 923,679 | 963,246 | 866,369 | |
Progress payments - Sale of Plant | - | - | - | |
Total current liabilities | 1,709,363 | 1,792,434 | 1,615,911 | |
Non-current liabilities | ||||
Provisions | 36,838 | 39,847 | 127,106 | |
Total non-current liabilities | 36,838 | 39,847 | 127,106 | |
Total liabilities | 1,746,201 | 1,832,281 | 1,743,017 | |
Net assets | 1,473,384 | 2,255,262 | 3,449,751 | |
EQUITY | ||||
Contributed equity | 90,405,581 | 90,293,839 | 90,293,840 | |
Reserves | 3,656,263 | 3,676,779 | 3,550,337 | |
Accumulated losses | (92,588,460) | (91,715,356) | (90,394,426) | |
TOTAL EQUITY | 1,473,384 | 2,255,262 | 3,449,751 | |
CAP-XX Limited
Statements of changes in equity
For the half-year ended 31 December 2014
Consolidated | |||||
Contributed Equity $ | Reserve $ | Accumulated losses $ | Total $ | ||
| |||||
Balance at 1 July 2013 | 87,932,560 | 3,461,424 | (89,044,081) | 2,349,903 | |
Adjustment for correction of error (Note 1 c) |
|
| (128,215) | (128,215)5 | |
Profit for the period as reported in the 2014 financial statements | - | (2,543,060) | (2,543,060) | ||
Other comprehensive income | - | 9,271 | - |
9,271 | |
Transactions with owners in their capacity as owners: | |||||
Contributions of equity, net of transaction costs and tax | 2,361,279 | 2,361,279 | |||
Employee share options ‑ value of employee services |
| - | 206,084 | - | 206,084 |
2,361,279 | 206,084 | - | 2,567,363 | ||
Balance at 30 June 2014 | 90,293,839 | 3,676,779 | (91,715,356) | 2,255,262 | |
Profit for the period as reported in the 2015 interim financial statements | - | - | (873,104) | (873,104) | |
Other comprehensive income | - | (85,432) | - |
(85,432) | |
Transactions with owners in their capacity as owners: | |||||
Contributions of equity, net of transaction costs and tax | 111,742 | - | - | 111,742 | |
Employee share options ‑ value of employee services | - | 64,916 | - | 64,916 | |
111,742 | 64,916 | - | 176,658 | ||
Balance at 31 December 2014 | 90,405,581 | 3,656,263 | (92,588,460) | 1,473,384 | |
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2014
Consolidated | |||
Half-year 2014 | Half-year 2013 | ||
Currency: Australian Dollars | $ | $ | |
Cash flows from operating activities | |||
Receipts from customers (inclusive of goods and services tax) | 2,492,221 | 2,087,948 | |
Payments to suppliers and employees (inclusive of goods and services tax) | (3,963,024) | (3,804,513) | |
(1,470,803) | (1,716,565) | ||
Tax credit received | 1,172,447 | 1,003,493 | |
Interest received | 6,769 | 29,899 | |
Net cash (outflow) inflow from operating activities | (291,587) | (683,173) | |
Cash flows from investing activities | |||
Payments for property, plant and equipment | (88,654) | (28,504) | |
Net cash (outflow) inflow from investing activities | (88,654) | (28,504) | |
Cash flows from financing activities | |||
Proceeds from issue of shares | 111,742 | 2,361,280 | |
Net cash inflow from financing activities | 111,742 | 2,361,280 | |
Net increase (decrease) in cash and cash equivalents | (268,499) | 1,649,603 | |
Cash and cash equivalents at the beginning of the half-year year | 900,397 | 1,105,523 | |
Effects of exchange rate changes on cash and cash equivalents | (85,432) | (25,531) | |
Cash and cash equivalents at the end of the half-year year |
| 546,466 | 2,729,595 |
This general purpose interim financial report, for the half-year reporting period ended 31 December 2014, has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This general purpose interim financial report, for the half-year reporting period ended 31 December 2014, is (with the exception of the figures for 30 June 2014 in the Balance Sheet) unaudited.