Ceres Power Regulatory News (CWR)

CWR.L

15 April 2024

Ceres Power Holdings plc

Final results for the year ended 31 December 2023

Focus on accelerating the pace of development and commercialisation

Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (CWR.L), a leading developer of clean energy technology, announces its results for the year ended 31 December 2023.

Financial highlights

· Revenue of £22.3 million (2022: £19.8 million1)

· Gross profit of £13.6 million (2022: £10.7 million1), maintaining sector-leading gross margin at 61% (2022: 54%1)

· Research and development investment increased by 11% to £54.0 million (2022: £48.5 million1), consistent with strategy to drive innovation and commercial acceleration in electrolysers

· Strong cash and short-term investments position of £140.0 million (2022: £182.3 million) with reduced cash outflow of £42.4 million (2022: £67.3 million) through disciplined working capital and cash management

Strategic highlights

· Bosch's 'power units' based on Ceres' technology received European funding of ~€160 million to support series ramp up and mass production

· Doosan's 50MW stack factory in South Korea has completed factory acceptance testing and machine installation with commissioning on schedule for 2024

· Second generation stack design has passed critical design review, offering improvements in performance and cost to licence partners

· The electrolysis programme is progressing well. The megawatt-scale electrolyser demonstrator successfully completed testing in Germany and has arrived at partner Shell's R&D centre in Bangalore, India

· Graduation to the Main Market of the London Stock Exchange in June 2023

Current trading and outlook

· Signed significant new fuel cell and electrolysis license with Delta Electronics in January 2024, which includes staged revenues of £43 million to Ceres through technology transfer and licensing, of which approximately half is expected to be recognised as revenue in 2024. Initial production by Delta is expected to start by the end of 2026

· We have confidence at this early stage of the year to approximately double revenues in 2024 from existing partnerships, compared to 2023

Phil Caldwell, Chief Executive Officer of Ceres, said:

"After a challenging 2023, Ceres is already on track for a strong year in 2024, underpinned by a significant new licence deal with Delta, our first to include SOEC. This is further validation of our strategy to accelerate investment into SOEC our green hydrogen technology and adds to our series of world class partnerships as we continue to scale our business globally."

Ends

As indicated on 14 March 2024, the Company was informed by its auditors BDO that they required more time to complete this year's audit. The process is now complete and a number of prior period corrections were identified, the main ones relating to the historical timing and treatment of revenue recognition and foreign exchange impact for long term contracts, the dilapidation provision and capitalisation of relevant costs.

The total impact of all items is a decrease in net assets of £3.6 million in 2022, with the majority being explained by a reduction of revenue of £1.7 million in 2021 and £2.3 million in 2022. These decreases in revenue are offset by increases in revenue of £0.3 million in 2023 and £3.3 million increase in the opening order backlog for 2024. Please see note 1 of the Financial Statements for further detail.

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2023

31 December 2023

31 December 2022

Restated1

Note

£'000

£'000

Revenue1

2

22,324

19,788

Cost of sales

(8,770)

(9,079)

Gross profit

Other operating income2

3,665

1,332

Operating costs1

4

(76,620)

(66,054)

Operating loss

Finance income

5

7,079

2,830

Finance expense

5

(1,287)

(304)

Loss before taxation

Taxation (charge)/credit

6

Loss for the financial period and total comprehensive loss

(54,008)

(47,615)

Loss per £0.10 ordinary share expressed in pence per share:

Basic and diluted loss per share

7

(28.03)p

(24.88)p

The accompanying notes are an integral part of these consolidated financial statements.

1 The restatement to 2022 is described in Note 1.

2 Other operating income relates to grant income and the Group's RDEC tax credit.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2023

31 December 2023

31 December 2022

Restated1

31 December 2021

Restated1

Note

£'000

£'000

£'000

Assets

Non-current assets

Property, plant and equipment

8

25,882

26,387

18,613

Right-of-use assets

9

2,141

2,647

2,438

Intangible assets

10

19,054

13,278

8,478

Long-term investments

ꟷ

ꟷ

5,000

Investment in associate

2,350

2,460

500

Other receivables

12

741

741

741

Total non-current assets

Current assets

Inventories

11

2,825

5,714

3,145

Contract assets1

2

1,575

400

5,343

Other current assets

13

1,193

957

1,133

Derivative financial instruments

17

8

54

1,073

Current tax receivable

771

7,396

1,615

Trade and other receivables

12

9,876

17,153

5,813

Short-term investments1

14

90,249

110,536

93,129

Cash and cash equivalents1

14

49,707

71,784

151,455

Total current assets

Liabilities

Current liabilities

Trade and other payables

15

(4,983)

(4,933)

(2,783)

Contract liabilities1

2

(7,469)

(7,363)

(3,917)

Other current liabilities1

16

(6,301)

(6,275)

(5,047)

Derivative financial instruments

17

(99)

ꟷ

ꟷ

Lease liabilities

18

(694)

(610)

(754)

Provisions

19

(647)

(929)

(1,579)

Total current liabilities

Net current assets

Non-current liabilities

Lease liabilities

18

(1,902)

(2,514)

(2,285)

Other non-current liabilities1

16

(1,360)

(1,011)

(771)

Provisions

19

(2,282)

(2,105)

(1,828)

Total non-current liabilities

Net assets

Equity attributable to the owners of the parent

Share capital

20

19,297

19,209

19,073

Share premium

406,184

405,463

404,726

Capital redemption reserve

3,449

3,449

3,449

Merger reserve

7,463

7,463

7,463

Accumulated losses1

(255,758)

(201,817)

(155,199)

Total equity

The accompanying notes are an integral part of these consolidated financial statements. 

1 The restatements to 2022 and 2021 are described in Note 1.

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2023

Note

 31 December 2023

 31 December 2022

Restated1

£'000

£'000

Cash flows from operating activities

Loss before taxation1

(53,609)

(51,487)

Adjustments for:

Finance income

(7,079)

(2,830)

Finance expense

1,287

304

Depreciation of property, plant and equipment1

7,461

5,592

Depreciation of right-of-use assets

641

620

Amortisation of intangible assets

1,024

1,032

Net foreign exchange gains1

(232)

(690)

Net change in fair value of financial instruments

143

1,020

Share-based payments charge

67

997

Operating cash flows before movements in working capital

Decrease/(increase) in trade and other receivables1,2

6,356

(11,165)

Decrease/(increase) in inventories

2,889

(2,569)

Increase in trade and other payables2

1,847

3,345

(Increase)/decrease in contract assets1

(1,175)

4,943

Increase in contract liabilities1

106

2,487

Decrease in provisions1

(536)

(522)

Net cash used in operations

Taxation received/(paid)2

6,911

(1,909)

Net cash used in operating activities

Investing activities

Investment in associate

ꟷ

(1,000)

Proceeds received on disposal of property, plant and equipment

225

ꟷ

Purchase of property, plant and equipment1

(7,922)

(12,347)

Capitalised development expenditure

(6,800)

(5,832)

Repayment of long-term investments

ꟷ

5,000

Decrease/(increase) in short-term investments1

21,168

(16,193)

Finance income received

5,616

1,443

Net cash used in investing activities

Financing activities

Proceeds from issuance of ordinary shares

809

873

Repayment of lease liabilities

(658)

(744)

Interest paid

(393)

(212)

Net cash generated from/(used by) financing activities

Net decrease in cash and cash equivalents

(21,854)

(79,844)

Exchange (losses)/gains on cash and cash equivalents2

(223)

173

Cash and cash equivalents at beginning of period

71,784

151,455

Cash and cash equivalents at end of period1

14

The accompanying notes are an integral part of these consolidated financial statements.

1 The restatement to 2022 is described in Note 1.

2 2022 taxation paid has been restated to increase the taxation paid from £380,000 by £1,529,000 to correct the amount disclosed as tax paid, the corresponding adjustment is to reduce the increase in trade and other receivables and other current assets. The exchange gains on cash and cash equivalents in 2022 has been corrected by reducing the previously reported amounts by £690,000 with the corresponding adjustment being made to increase the movement in trade and other payables, and hence net cash used in operating activities has increased by the same amount.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2023

Share

capital

Share

premium

Capital redemption reserve

Merger

reserve

Accumulated losses

Total

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2022 - Previously stated

Restatement1

ꟷ

ꟷ

ꟷ

ꟷ

(1,143)

(1,143)

At 1 January 2022 - Restated

Comprehensive income

Loss for the financial year - Restated1

ꟷ

ꟷ

ꟷ

ꟷ

(47,615)

(47,615)

Total comprehensive loss - Restated1

Transactions with owners

Issue of shares, net of costs

136

737

ꟷ

ꟷ

ꟷ

873

Share-based payments charge

ꟷ

ꟷ

ꟷ

ꟷ

997

997

Total transactions with owners

At 31 December 2022 - Restated1

Comprehensive income

Loss for the financial period

ꟷ

ꟷ

ꟷ

ꟷ

(54,008)

(54,008)

Total comprehensive loss

Transactions with owners

Issue of shares

88

721

ꟷ

ꟷ

ꟷ

809

Share-based payments charge

ꟷ

ꟷ

ꟷ

ꟷ

67

67

Total transactions with owners

At 31 December 2023

The accompanying notes are an integral part of these consolidated financial statements.

 1 The restatement to 2021 and 2022 is described in Note 1.

1. Basis of preparation

The financial information presented in this final results announcement has been prepared in accordance with the recognition and measurement requirements of UK adopted international accounting standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The principal accounting policies adopted in the preparation of the financial information in this announcement are unchanged from those used in the company's statutory financial statements for the year ended 31 December 2023. Whilst the financial information included in this announcement has been computed in accordance with the recognition and measurement requirements of IFRS, this announcement does not itself contain sufficient disclosures to comply with IFRS.

The financial information contained in this final results statement does not constitute statutory financial statements as defined by in Section 434 of the Companies Act 2006. The financial information has been extracted from the financial statements for the year ended 31 December 2023 which have been approved by the Board of Directors, and the comparative figures for the year ended 31 December 2022 are based on the financial statements for that year.

The financial statements for 2022 have been delivered to the Registrar of Companies and the 2023 financial statements will be delivered after the Annual General Meeting on 16 May 2024. The Auditor has reported on both sets of accounts without qualification, did not draw attention to any matters by way of emphasis without qualifying their report, and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006. The Directors confirm that, to the best of their knowledge, this condensed set of consolidated financial statements has been prepared in accordance with the LSE Rules.

Going Concern

The Group has reported a loss after tax the year ended 31 December 2023 of £54.0m (31 December 2022 of £47.6m1) and net cash used in operating activities of £33.9m (31 December 2022: £50.8m). At 31 December 2023, the Group held cash and cash equivalents and investments of £140.0m (31 December 2022: £182.3m). The directors have prepared annual budgets and cash flow projections that extend 12 months from the date of approval of this report. The decreased operating cash used in the year is a result of favourable movements in working capital, including significant debtor receipts at the beginning of the year and a reduction in inventory held. Future projections include management's expectations of the further investment in R&D projects, new product development and capital investment as the Group sustains its competitive advantage in licensing fuel cell and electrolysis technologies. Future cash inflows reflects management's expectations of revenue from existing and new licensee partners in both the power and green hydrogen markets.

The projections were stress tested by applying different scenarios in line with the Group's viability scenarios including a slower intake of future licensee partners leading to a loss of significant future revenue and a resulting cost mitigation. The China joint venture with Weichai and Bosch has now been removed from future projections. In each case the projections demonstrated that the Group is expected to have sufficient cash reserves to meet its liabilities as they fall due and to continue as a going concern. For the above reasons, the Directors continue to adopt the going concern basis in preparing the consolidated financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.

In preparing the consolidated financial statements, the areas where judgement has been exercised remain consistent with those applied to the annual report and accounts for the year ended 31 December 2022.

Prior period adjustments

The directors have identified a number of prior period adjustments in the period:

Revenue

Revenue in 2021 and 2022 has been restated to correct the historical timing and foreign exchange impact of revenue recognition for legacy licences, and to appropriately offset contract balances relating to the same identified contracts. At 31 December 2021, the result of these adjustments on the consolidated statement of financial position was to reduce contract assets by £2.0m and reduce contract liabilities by £0.4m with a corresponding reduction in net assets of £1.6m. At 31 December 2022, the result of these adjustments on the consolidated statement of financial position was to reduce contract assets by £2.9m, increase contract liabilities by £1.0m and reduce net assets and increase in accumulated losses by £3.9m. In respect of the consolidated statement of profit and loss and other comprehensive income with a corresponding reduction in net assets and increase in accumulated losses of £3.9m, the adjustments reduced revenue by £2.3m, reduced operating costs by £0.1m and increased the loss before tax by £2.3m. There was no overall impact on cash flows from operating activities or recognised tax as a result of these adjustments.

Property, plant and equipment and non-current provisions

The movements in dilapidation provisions relating to items capitalised within property, plant and equipment, were not previously capitalised but were incorrectly expensed to the income statement. Furthermore, the 2022 dilapidation provision did not correctly reflect property, plant and equipment additions in the prior period. At 31 December 2021, the result of the adjustments on the consolidated statement of financial position was to increase property, plant and equipment by £0.5m with a corresponding increase in net assets and reduction in accumulated losses. At 31 December 2022, the result of these adjustments on the consolidated statement of financial position was to increase property plant and equipment by £0.5m, increase non-current provisions by £0.2m with a corresponding increase in net assets and reduction in accumulated losses of £0.3m. In respect of the consolidated statement of profit and loss and other comprehensive income, the adjustments increased operating costs and losses by £0.2m. There was no overall impact on the net cash used in operating activities or other cash flows, or recognised tax as a result of these adjustments.

Cash and cash equivalents and short-term investments

2022 short term investments incorrectly included cash balances with a value of £8.5m. At 31 December 2022 the result of the adjustments on the consolidated statement of financial position was to increase cash and cash equivalents by this amount with a corresponding reduction to short-term investments. There was no impact on net assets or recognised tax as a result of this adjustment. In respect of the consolidated statement of cash flows, the adjustment reduced the net cash used in investing activities and the net decrease in cash and cash equivalents by the same amount.

Other current and non-current liabilities

Other current liabilities in 2021 and 2022 incorrectly included deferred income to be realised in more than one year. At 31 December 2022, the result of the adjustments on the consolidated statement of financial position was to increase other non-current liabilities by £1.0m with a corresponding reduction in other current liabilities. At 31 December 2021, the result of the adjustments on the consolidated statement of financial position was to increase other non-current liabilities by £0.8m with a corresponding reduction in other current liabilities. There was no impact on net assets, recognised tax or the consolidated statement of cash flows as a result of these adjustments.

Further prior period adjustments were required to the disclosure of cash flows in the consolidated cash flow statement and the classification of assets under construction in note 8. These adjustments have been detailed in the respective statement or note.

New standards and amendments applicable for the reporting period

The Group has adopted all standards, interpretations amended or newly issued by the IASB that were effective in the period. Their adoption has not had any material effect on the consolidated financial statements.

2. Revenue

The Group's revenue is disaggregated by geographical market, major product/service lines, and timing of revenue recognition:

Geographical market

 31 December 2023

 31 December 2022

Restated1

£'000

£'000

Europe2

12,394

7,980

Asia2

9,589

11,391

North America

341

394

Rest of World

ꟷ

23

22,324

19,788

For the year ended 31 December 2023, the Group has identified two major customers (defined as customers that individually contributed more than 10% of the Group's total revenue) that accounted for approximately 51% (SOFC and SOEC) and 39% (all SOFC) of the Group's total revenue recognised in the period (31 December 2022: two major customers that accounted for approximately 48% and 38% of the Group's total revenue recognised for that year).

Major product/service lines

 31 December 2023

 31 December 2022

Restated1

£'000

£'000

Engineering services

10,220

9,039

Provision of technology hardware

5,726

5,380

Licence fees2

6,378

5,369

22,324

19,788

Timing of transfer of goods and services

 31 December 2023

 31 December 2022

Restated1

£'000

£'000

Products and services transferred at a point in time

6,544

4,760

Products and services transferred over time

15,780

15,028

22,324

19,788

The contract-related assets and liabilities are as follows:

31 December 2023

31 December 2022

Restated1

31 December 2021

Restated1

£'000

£'000

£'000

Trade receivables

12

3,422

11,825

2,612

Contract assets - accrued income

Total contract related assets

4,997

12,225

7,955

Contract liabilities - deferred income

1 The restatement to 2022 is described in Note 1.

2 The adjustments as described in Note 1 have impacted 2022 licences revenue in both Europe and Asia.

3. Segmental analysis

In accordance with IFRS 8 the method applied to identify reporting segments is based on internal management reporting information that is regularly reviewed by the chief operating decision maker, which the Group considers to be the Executive team. The Group's internal segmental reporting has changed and now only separately presents results down to gross profit level from its Power (SOFC) and Hydrogen (SOEC) divisions where previously presented to adjusted EBITDA.

Power - SOFC

Hydrogen - SOEC

Consolidated

31 December 2023

£'000

£'000

£'000

Revenue (external)

21,567

757

22,324

Cost of sales

(8,346)

(424)

(8,770)

Gross profit

13,221

333

13,554

Power - SOFC

Hydrogen - SOEC

Consolidated

31 December 2022 - Restated1

£'000

£'000

£'000

Revenue (external)

19,608

180

19,788

Cost of sales

(9,070)

(9)

(9,079)

Gross profit

10,538

171

10,709

1 The restatement to 2022 is described in Note 1.

4. Operating costs

Operating costs can be analysed as follows:

31 December 2023

 31 December 2022

Restated1

£'000

£'000

Research and development costs

54,034

48,546

Administrative expenses

17,681

15,116

Commercial

4,905

2,392

76,620

66,054

1 The restatement to 2022 is described in Note 1.

5. Finance income and expenses

 31 December 2023

 31 December 2022

£'000

£'000

Interest income on cash, cash equivalents and investments

7,079

2,657

Foreign exchange gain on cash, cash equivalents and short-term deposits

ꟷ

173

Finance income

7,079

2,830

Interest paid

(99)

ꟷ

Interest on lease liability

(248)

(212)

Unwinding of discount on provisions

(89)

(87)

Other finance costs

(46)

(5)

Foreign exchange loss on cash, cash equivalents and short-term deposits

(805)

ꟷ

Interest expense

(1,287)

(304)

6. Taxation

No corporation tax liability has arisen during the period (31 December 2022: £nil) due to the losses incurred. A tax charge has arisen as a result of foreign withholding taxes suffered and an overprovisions of R&D tax credit for 2022 under the SME R&D regime. The SME R&D tax credit regime is no longer accessible to the Group. The RDEC regime continues to be accessible and has been recognised within other operating income.

 31 December 2023

 31 December 2022

£'000

£'000

UK corporation tax

ꟷ

(4,470)

Foreign tax suffered

334

828

Adjustment in respect of prior periods

65

(230)

399

(3,872)

7. Loss per share

31 December 2023

 31 December 2022

Restated1

£'000

£'000

Loss for the financial period attributable to shareholders

Weighted average number of shares in issue

192,651,782

191,385,618

Loss per £0.10 ordinary share (basic and diluted)

(28.03)p

(24.88)p

1 The restatement to 2022 is described in Note 1.

8. Property, plant and equipment

Leasehold improvements

 £'000

Plant and machinery£'000

Computer equipment£'000

Fixtures and fittings

£'000

Assets under construction

 £'000

Total

£'000

Cost

At 1 January 2022 - Previously stated

7,412

25,514

2,563

348

1,975

37,812

Brought forward restatement1

151

518

ꟷ

ꟷ

ꟷ

669

At 1 January 2022 - Restated

7,563

26,020

2,563

348

1,975

38,481

Additions

1,121

5,194

203

ꟷ

6,848

13,366

Transfers

71

1,672

ꟷ

ꟷ

(1,743)

ꟷ

Disposal

(1,621)

(6,669)

(831)

(72)

ꟷ

(9,193)

At 31 December 2022

7,134

26,229

1,935

276

7,080

42,654

Additions

1,318

3,647

164

115

1,937

7,181

Transfers

511

2,009

ꟷ

ꟷ

(2,520)

ꟷ

Disposals

(150)

(568)

(57)

ꟷ

(68)

(843)

At 31 December 2023

8,813

31,317

2,042

391

6,429

48,992

Accumulated depreciation

At 1 January 2022 - Previously stated 

3,358

14,291

1,790

232

ꟷ

19,671

Brought forward restatement1

37

160

ꟷ

ꟷ

ꟷ

197

At 1 January 2022 - Restated 

3,395

14,451

1,790

232

ꟷ

19,868

Charge for the year

956

4,119

444

73

ꟷ

5,592

Depreciation on disposals

(1,621)

(6,669)

(831)

(72)

ꟷ

(9,193)

At 31 December 2022

2,730

11,901

1,403

233

ꟷ

16,267

Charge for the year

1,264

5,783

379

35

ꟷ

7,461

Depreciation on disposals

(150)

(411)

(57)

ꟷ

ꟷ

(618)

At 31 December 2023

3,844

17,273

1,725

268

ꟷ

23,110

Net book value

At 31 December 2023

4,969

14,044

317

123

6,429

25,882

At 31 December 2022 - Restated

4,404

14,328

532

43

7,080

26,387

At 31 December 2021 - Restated

4,168

11,581

773

116

1,975

18,613

1 The adjustment in respect of 2022 and 2021 is described in Note 1.

2 The transfer from assets under construction to plant and machinery in the 2022 property, plant and equipment note was understated by £779,000. The note has been re-presented to reflect this correction.

'Assets under construction' represents the cost of purchasing, constructing and installing property, plant and equipment ahead of their productive use. The category is temporary, pending completion of the assets and their transfer to the appropriate and permanent category of property, plant and equipment. As such, no depreciation is charged on assets under construction.

Assets under construction consist entirely of plant and machinery that will be used in the manufacturing, development and testing of fuel cells.

9. Right of use assets

Land and Buildings

Computer equipment

Total

£'000

£'000

£'000

Cost

At 1 January 2022

3,694

43

3,737

Adjustment to lease term

829

ꟷ

829

At 31 December 2022

4,523

43

4,566

Additions

168

ꟷ

168

Adjustment to lease term

(33)

ꟷ

(33)

At 31 December 2023

4,658

43

4,701

Accumulated depreciation

At 1 January 2022

1,289

10

1,299

Charge for the year

606

14

620

At 31 December 2022

1,895

24

1,919

Charge for the year

627

14

641

At 31 December 2023

2,522

38

2,560

Net book value

At 31 December 2023

2,136

5

2,141

At 31 December 2022

2,628

19

2,647

The lease liabilities are detailed in Note 18.

10. Intangible assets

Internal developments in relation to manufacturing site

 £'000

Customer and internal development programmes

£'000

Perpetual

software licences

£'000

Patent costs£'000

Total

£'000

Cost

At 1 January 2022

411

8,407

252

633

9,703

Additions

ꟷ

5,340

273

219

5,832

At 31 December 2022

411

13,747

525

852

15,535

Additions

ꟷ

6,443

ꟷ

357

6,800

At 31 December 2023

411

20,190

525

1,209

22,335

Accumulated amortisation

At 1 January 2022

164

1,038

23

ꟷ

1,225

Charge for the year

82

748

125

77

1,032

At 31 December 2022

246

1,786

148

77

2,257

Charge for the year

82

728

137

77

1,024

At 31 December 2023

328

2,514

285

154

3,281

Net book value

At 31 December 2023

83

17,676

240

1,055

19,054

At 31 December 2022

165

11,961

377

775

13,278

The customer and internal development intangible primarily relates to the design, development and configuration of the Company's core fuel cell and system technology. Amortisation of capitalised development commences once the development is complete and is available for use.

11. Inventories

31 December 2023

31 December 2022

£'000

£'000

Raw materials

1,648

1,566

Work in progress

787

1,477

Finished goods

390

2,671

Total inventory

2,825

5,714

Inventories have reduced which reflects the stacks shipped to customers and the use of stacks for internal R&D projects, particularly the SOEC demonstrator.

12. Trade and other receivables

31 December 2023

31 December 2022

Current:

£'000

£'000

Trade receivables

3,422

11,825

VAT receivable

2,273

1,853

RDEC receivable

4,008

3,032

Other receivables

172

443

9,876

17,153

Non-current:

Other receivables

741

741

13. Other current assets

31 December 2023

31 December 2022

Prepayments

1,193

869

Accrued grant income

ꟷ

88

14. Net cash and cash equivalents, short-term and long-term investments

31 December 2023

31 December 2022

Restated1

£'000

£'000

Cash at bank and in hand

7,063

16,312

Money market funds

42,644

55,472

Cash and cash equivalents

49,707

71,784

Short-term investments

90,249

110,536

Cash and cash equivalents and investments

139,956

182,320

1 The restatement to 2022 is described in Note 1.

The Group typically places surplus funds into pooled money market funds with same day access and bank deposits with durations of up to 24 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-mf (Moody's) and AAAmmf (Fitch) and deposits with banks with minimum long-term rating of A-/A3/A and short-term rating of A-2/P-2/F-1 for banks which the UK Government holds less than 10% ordinary equity.

15. Trade and other payables

31 December 2023

31 December 2022

Current:

£'000

£'000

Trade payables

3,624

4,795

Other payables

1,359

138

4,983

4,933

16. Other current liabilities

31 December 2023

31 December 2022

Restated1

31 December 2021

Restated1

£'000

£'000

£'000

Current:

Accruals

5,933

6,032

4,803

Deferred income1

6,301

6,275

5,047

Non-current:

Deferred income1

1 The restatement to 2022 and 2021 is described in Note 1.

17. Derivative financial instruments

Fair value

hierarchy

Carrying amount

31 December 2023

£'000

Fair value

31 December 2023

£'000

Carrying amount

31 December 2022

£'000

Fair value

31 December 2022

£'000

Financial assets measured at fair value through profit or loss

Forward exchange contracts

Level 2

1

1

26

26

Currency swap contract

Level 2

7

7

ꟷ

ꟷ

Non-deliverable forward contracts

Level 2

ꟷ

ꟷ

28

28

Total derivative assets

Financial liabilities measured at fair value through profit or loss

Forward exchange contracts

(99)

(99)

ꟷ

ꟷ

Total derivative liabilities

18. Lease liabilities

31 December 2023

31 December 2022