Last checked at 29 Mar 2018 12:09
29 March 2018
Inspirit Energy Holdings PLC
("Inspirit Energy", the "Group" or the "Company")
Interim Results
Inspirit Energy Holdings PLC (AIM: INSP), the developer of micro Combined Heat and Power (microCHP) boilers, is pleased to announce its interim accounts for the six months ended 31 December 2017.
Chairman's Statement:
During the period, the Group has continued working to advance its microCHP boiler (the "Inspirit Charger") towards commercialisation. The improvements to the design announced last year of the Group's Stirling engine technology, including simplification as part of the 'design for manufacture' ("DFM") process, has encouragingly maintained the peak electrical output up to 3.2kW in internal tests.
The engineering department has throughout the last period made significant developments in our regenerator technology. The increased efficiency in the regenerator will allow the Stirling engine to be manufactured from a commodity grade stainless steel derivative, which is both stronger and cheaper to manufacture than the previous proprietary "Inconel" materials.
The DFM process continues to yield several engineering improvements and manufacturing cost reductions whilst others are still expected. Whilst this DFM process remains ongoing, the Group is now looking to proceed to the certification process whereby the Inspirit Charger will be subjected to testing by a competent authority. Once this has been achieved, we can then look towards commencing field trails with commercial partners. The Company will update investors as these milestones are met over the forthcoming year.
The operating board believe that the progress over the last six months has been positive. Whilst we remain well positioned in the microCHP boiler technology market, ongoing funding for the development and commercialisation of our product remains a challenge. Accordingly, we continue to manage our resources whilst pushing forward with the product and expect this to continue in 2018.
The Board will provide further a updates in due course.
John Gunn, Chairman and CEO of Inspirit, commented,
"Last six months has seen another progressive step for the Company with reduction in development costs and the charger unit maintaining its output to management expectations."
-ends-
For further information please contact:
Inspirit Energy Holdings plc |
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John Gunn, Chairman and CEO | +44 (0) 207 048 9400
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Beaumont Cornish Limited www.beaumontcornish.com (Nominated Advisor) |
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Roland Cornish / James Biddle
| +44 (0) 207 628 3396 |
Peterhouse Corporate Finance (Joint Broker) |
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Lucy Williams / Duncan Vasey
| +44 (0) 207 469 0930 |
SVS Securities Plc (Joint Broker) Tom Curran
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+44 (0) 203 700 0093
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INSPIRIT ENERGY HOLDINGS PLC
Consolidated
Statement of Comprehensive Income
for the six months ended 31 December 2017
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| Group Six months to 31 December 2017 Unaudited |
| Group Six months to 31 December 2016 Unaudited |
| Group Year to 30 June 2017 Audited |
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| £'000s |
| £'000s |
| £'000s |
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Revenue |
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| - |
| - |
| - |
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Administrative expenses |
| (169) |
| (214) |
| (384) | ||
Other Losses -Net |
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| - | ||
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| ──────── |
| ──────── |
| ──────── | ||
Operating loss |
| (169) |
| (214) |
| (384) | ||
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Finance costs |
| (15) |
| (1) |
| (73) | ||
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| ──────── |
| ──────── |
| ──────── |
Loss before tax |
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| (184) |
| (215) |
| (457) | |
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Income tax credit |
| - |
| - |
| 38 | ||
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| ──────── |
| ──────── |
| ──────── |
Loss for the period from continuing operations attributable to shareholders | (184) |
| (215) |
| (419) | |||
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Loss per share - Pence |
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Basic and diluted | (0.01)p |
| (0.02)p |
| (0.04)p | |||
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INSPIRIT ENERGY HOLDINGS PLC
Consolidated
Statement of Financial Position as at 31 December 2017
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| Group As at 31 December 2017 Unaudited |
| Group As at 31 December 2016 Unaudited | Group As at 30 June 2017 Audited |
| £'000s |
| £'000s | £'000s | |||
Non-Current Assets |
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Intangible assets | 2,783 |
| 2,619 | 2,668 | |||
Tangible assets | 49 |
| 58 | 53 | |||
| ─────── |
| ─────── | ─────── | |||
| 2,832 |
| 2,677 | 2,721 | |||
Current assets |
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Trade and other receivables | 48 |
| 63 | 174 | |||
Cash and cash equivalents | 53 |
| 73 | 30 | |||
| ─────── |
| ─────── | ─────── | |||
| 101 |
| 136 | 204 | |||
| ─────── |
| ─────── | ─────── | |||
Current liabilities |
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Trade and other payables | (287) |
| (311) | (366) | |||
Other borrowing | (180) |
| (120) | (199) | |||
| ─────── |
| ─────── | ─────── | |||
| (467) |
| (431) | (565) | |||
| ─────── |
| ─────── | ─────── | |||
Net Current Liabilities | (366) |
| (295) | (361) | |||
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Non-Current Liabilities |
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Trade and other payables | - |
| - | - | |||
| ─────── |
| ─────── | ─────── | |||
| 2,466 |
| 2,382 | 2,360 | |||
| ═══════ |
| ═══════ | ═══════ | |||
Equity |
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Share capital | 1,818 |
| 1,334 | 1,568 | |||
Share premium | 8,184 |
| 8,097 | 8,144 | |||
Other reserves | 206 |
| 206 | 206 | |||
Merger reserve | 3,150 |
| 3,150 | 3,150 | |||
Reverse acquisition reserve | (7,361) |
| (7,361) | (7,361) | |||
Retained losses | (3,531) |
| (3,044) | (3,347) | |||
| ─────── |
| ─────── | ─────── | |||
Total | 2,466 |
| 2,382 | 2,360 | |||
| ═══════ |
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INSPIRIT ENERGY HOLDINGS PLC
Consolidated
Statement of Changes in Equity
For the six months ended 31 December 2017
| Attributable to the owners of the parent | ||||||
| Share | Share premium | Other reserves | Merger reserve | Reverse acquisition reserve | Retained | Total |
capital | losses | Equity | |||||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
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Balance at 1 July 2015 | 1,098 | 7,305 | 125 | 3,150 | (7,361) | (2,371) | 1,946 |
Loss for the year | - | - | - | - | - | (458) | (458) |
Total comprehensive income for the year | - | - | - | - | - | (458) | (458) |
Share issues | 236 | 919 | - | - | - | - | 1,155 |
Share issue costs | - | (46) | - | - | - | - | (46) |
Issue of warrants | - | (81) | 81 | - | - | - | - |
Transactions with owners | 236 | 792 | 81 | - | - | - | 1,109 |
Balance at 30 June 2016 | 1,334 | 8,097 | 206 | 3,150 | (7,361) | (2,829) | 2,597 |
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Loss for the year | - | - | - | - | - | (419) | (419) |
Total comprehensive income for the year | - | - | - | - | - | (419) | (419) |
Share issues | 234 | 58 | - | - | - | - | 292 |
Share issue costs | - | (11) | - | - | - | - | (11) |
Debt Adjustment |
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| (99) | (99) |
Transactions with owners | 234 | 47 | - | - | - | (99) | 182 |
Balance as at 30 June 2017 | 1,568 | 8,144 | 206 | 3,150 | (7,361) | (3,347) | 2,360 |
Loss for the period | - | - | - | - | - | (184) | (184) |
Total comprehensive income for the period | - | - | - | - | - | (184) | (184) |
Share issues | 250 | 50 | - | - | - | - | 300 |
Share issue costs | - | (10) | - | - | - | - | (10) |
Transactions with owners | 250 | 40 | - | - | - | (184) | 106 |
Balance as at 31 December 2017 | 1,818 | 8,184 | 206 | 3,150 | (7,361) | (3,531) | 2,466 |
INSPIRIT ENERGY HOLDINGS PLC
Consolidated
Statement of Cash Flows
For the six months ended 31 December 2017
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| Group Six months to 31 December 2017 Unaudited | Group Six months to 31 December 2016 Unaudited | Group Year to 30 June 2017 Audited |
| Note | £'000 | £'000 | £'000 | |
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Operating activities |
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Net cash from operating activities | 6 | (137) | (14) | (185) | |
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| ─────── | ─────── | ─────── | |
Net cash generated/(used) in operating activities |
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(137) |
(14) |
(185) | |
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| ─────── | ─────── | ─────── | |
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Investing activities |
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Acquisition of intangible assets |
| (115) | (124) | (173) | |
Acquisition of plant and equipment |
| - | - | (1) | |
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| ─────── | ─────── | ─────── | |
Net cash from financing activities |
| (115) | (124) | (174) | |
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| ─────── | ─────── | ─────── | |
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Financing activities |
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Issue of share capital (Net of fees) |
| 290 | - | 204 | |
Finance costs |
| (15) | (1) | (73) | |
Increase in short term borrowing |
| - | (46) | - | |
Transactions with owners |
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| - | |
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| ─────── | ─────── | ─────── | |
Net cash from financing activities |
| 275 | (47) | 131 | |
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| ─────── | ─────── | ─────── | |
Net cash outflow |
| 23 | (185) | (228) | |
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Cash and cash equivalents at the beginning of the period |
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30 |
258 |
258 | |
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| ─────── | ─────── | ─────── | |
Cash and cash equivalents at the end of the period |
|
53 |
73 |
30 | |
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| ═══════ | ═══════ | ═══════ | |
INSPIRIT ENERGY HOLDINGS PLC
Consolidated Notes to the Interim Financial Information
1. General Information
The principal activity of Inspirit Energy Holdings PLC ("the Company") during the period was that of an investment company which aims to invest in disruptive products or technologies that are either proven or at the later stages of development, which own or have exclusive licence to the relevant intellectual property and may benefit from feed-in tariffs or other renewable energy incentives.
Inspirit Energy Holdings PLC is a company incorporated and domiciled in England and Wales and quoted on AIM, a market operated by the London Stock Exchange. The address of its registered office is 2nd Floor, 2 London Wall Buildings, London, EC2M 5PP, United Kingdom.
2. Basis of Preparation
The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 30 June 2017 were approved by the Board of Directors on 22 December 2017 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.
The interim financial information for the six months ended 31 December 2017 has not been reviewed or audited. The interim financial report has been approved by the Board on 28 March 2018.
Going concern
The Directors, having made appropriate enquiries, consider that adequate resources exist for the Company to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the interim financial statements for the period ended 31 December 2017.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2017 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.inspirit-energy.com. The key financial risks are liquidity and credit risk.
Critical accounting estimates
The preparation of interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 2 of the Company's 2017 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.
3. Significant Accounting Policies
The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2017, as described in those annual financial statements.
4. Segmental Analysis
The Company's primary reporting format is business segments and its secondary format is geographical segments. The Company only operates in a single business and geographical segment. Accordingly no segmental information for business segment or geographical segment is required.
5. Loss per Share
The loss per ordinary share is based on the Group's loss for the period of £184,000 (company's loss - 6 months to 31 December 2016 - £215,000; year ended 30 June 2017 - £419,000) and a basic and diluted weighted average number of ordinary shares of £0.001 each in issue of 1,420,806,859 (31 December 2016 - basic and diluted 936,806,859; 30 June 2017 - basic and diluted 1,170,806,859).
6. Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities
| Group Six months to 31 December 2017 Unaudited | Group Six months to 31 December 2016 Unaudited | Group Year to 30 June 2017 Audited |
| £'000s | £'000s | £'000s |
Operating Loss for the period | (184) | (241) | (457) |
Adjustments for : |
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(Increase)/Decrease in receivables | 125 | 264 | 192 |
(Decrease)/Increase in payables | (97) | (72) | 29 |
Depreciation | 4 | 7 | 11 |
Income tax credit received | - | - | - |
Other adjustments | - | - | (33) |
Finance expense | 15 | 1 | 73 |
| ─────── | ─────── | ─────── |
Net cash from operating activities | (137) | (14) | (185) |
| ═══════ | ═══════ | ═══════ |
7. Issued and fully paid
The issued share capital is as follows
| Ordinary 'A' shares of |
| Ordinary 'B' shares of |
| Deferred shares of |
| £0.001 |
| £0.001 |
| £0.99 |
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31 December 2017 | 1,420,806,859 |
| - |
| 400,932 |
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30 June 2017 | 1,170,806,859 |
| - |
| 400,932 |
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31 December 2016 | 936,806,859 |
| - |
| 400,932 |
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8. Copies of this interim financial information document are available from the Company at its registered office at 2nd Floor, Number 2, London Wall Buildings, London, EC2M 5PP. The interim financial information document will also be available on the Company's website www.inspirit-energy.com.