TIDMSTG
RNS Number : 3407L
Strip Tinning Holdings PLC
05 September 2023
5 September 2023
Strip Tinning Holdings plc
("Strip Tinning" or the "Company")
Interim Results
Strip Tinning Holdings plc (AIM: STG), a leading supplier of
specialist connection systems to the automotive sector, is pleased
to announce its unaudited results for the six months ended 30 June
2023(1) .
Key Financials:
-- Total Revenues of GBP5.6m (H1 2022: GBP4.7m)
-- Glazing product sales up 23% to GBP5m (H1 2022: GBP4.1m)
-- EV product sales of GBP0.6m (H1 2022: GBP0.6m)
-- Combined Gross Margin of GBP1.5m /26.7% (H1 2022: GBP0.4m / 8.8%)
-- Adjusted(2) EBITDA of GBP0.05m (H1 2022: loss of GBP1.6m)
-- Cash generation from operations of GBP0.1m (H1 2022:
-GBP3.5m); cash balance of GBP0.7m with no draw down against the
CID facility
-- Basic EPS(3) of (2.85)p versus H1 2022 (17.8)p
-- The Board remains confident of meeting market expectations for FY23
Operational updates:
-- Completion of new production line for flexible printed circuits ("FPCs")
-- Production line benefitted from the GBP1.4m of funding
provided under the Advanced Propulsion Centre's ("APC") Scale-up
Readiness Validation ("SuRV") scheme, awarded in September 2022
-- Transfer and re-layout of Connectors production into a single
building completed, improving productivity
-- Multiple further improvements including automation projects,
improved ERP functionality, implementation of EDI with our
customers, cross training and improved communications
Adam Robson, Executive Chair of Strip Tinning, commented: "I am
pleased to be able to report the significant turnaround that the
Company has achieved over the last 12 months and the positive
outlook we see ahead.
Over the past year, we have focussed on strengthening our
business and enhancing our capabilities. We are pleased with the
platform for growth that has been developed. Converting these
growth prospects into production nominations is now a key
priority.
To capitalise to the maximum extent possible on the growth
opportunities we see ahead of us and to fully satisfy our customers
with delivery of the new production nominations we have won, we
plan to continue to ramp-up our investments in people, including
engineering, project management, quality sourcing and sales. We
remain optimistic about our promising sales pipelines for EV and
Glazing beyond 2023, with potential new profitable nominations in
the near future."
(1) Comparative numbers for the half year to 30 June 2002 are
for Strip Tinning Limited.
(2) Adjusted for FX impacts, share based payments, restructuring
and IPO exceptionals
(3) Based on weighted average number of shares in the period
Enquiries:
Strip Tinning Holdings plc Via Alma PR
Adam Robson, Exec Chair
Richard Barton, Chief Executive
Officer
Adam Le Van, Chief Financial
Officer
Singer Capital Markets (Nominated
Adviser and Sole Broker)
Rick Thompson
James Fischer +44 (0) 20 7496 3000
Alma PR (Financial PR) striptinning@almapr.co.uk
Josh Royston +44 (0) 20 3405 0205
Joe Pederzolli
A copy of this announcement will be available to view on the
Company's website at www.striptinning.com .
Chief Executive's Report
Introduction
I am pleased to be able to report in these results the
significant turnaround that the Company has achieved over the last
12 months and the positive outlook we see ahead.
Our key financial metric is Adjusted EBITDA and this has been
positive in each of the first six months (H1) of 2023, totalling
GBP0.05m (H1 2022: -GBP1.6m) a very significant improvement over
2022. The Board is confident that the Company will meet market
expectations for the Full Year.
We have also been pleased with our cash performance in H1. Cash
generated from operations was near break-even at GBP0.1m (H1 2022:
-GBP3.5m) and as at 30(th) June we had no draw-down on our CID
facility. We have taken this opportunity to change CID provider to
one that gives us lower costs and preferential lending criteria
which has improved our actual available credit to about GBP1.2m
based on our current customer receivables book.
There have been a number of key drivers of the improvement in
EBITDA, the most significant of which are:
-- Increased sales with GBP5.6m being reported in H1 2023 (H1 2022: GBP4.7m);
-- The price increases we agreed with customers during 2022;
-- The leadership of the strengthened senior management team,
working under Mark Perrins, our MD who joined us in March 2022;
and
-- The improvements in productivity, quality and customer
service that the team are delivering.
It has been gratifying to see the results of the many
improvements we have made to the business being reflected in both
our financial results and in our new business pipeline, a key
indicator of customer satisfaction. We are now a significantly
healthier and more developed Company compared to a year ago. We
have grown stronger by successfully navigating through the
challenging obstacles and severe headwinds of 2022, which included
the Russian invasion of Ukraine, shortages of materials, intense
inflationary pressures and the aftermath of COVID. Consequently, we
are better placed than ever to capitalise on the increasing
momentum we see across the business and our markets.
As ever, I must also thank all of our employees for their
determined efforts that have brought us this far and who are the
foundation of our successes, past and future.
Market Opportunity
In both the markets we serve, we are seeing an improved market
position with strong customer demand and our enhanced
competitiveness is opening the door to accelerating growth.
The market for EV battery packs continues to grow at very high
rates, supported by the governments' determination to address
climate change, consumer enthusiasm and the strategic drive of the
automotive industry. For H1 2023, registrations in Europe(4) (EU,
EFTA and UK) of battery electric powered vehicles (full and hybrid)
grew by 27.2% year on year (and by 45.0% for full BEVs) meaning
that 47.3% of all vehicles registered in this period contained a
battery pack. Similar high growth rates are being seen in the
mid-market which is our primary target market. In the truck market,
registrations in Europe(5) (EU, EFTA and UK) of battery electric
powered vehicles (full and hybrid) grew by 385% year on year
(although the total share remains low at 1.8% of all vehicles sold
in H1 2023). Investment in new electric mobility and delivery
vehicles, from autonomous delivery vans to e-VTOL aircraft
continues apace. These mid-market customers are highly attracted to
working with European suppliers such as Strip Tinning who can
provide local, highly responsive, full service, engineered
solutions for their battery pack developments.
For our Glazing connectors business, we benefit from having a
high share of higher specification vehicles that we supply onto
(including many BEVs), so by capitalising on the higher volume
growth rates seen in these vehicle categories as well as higher
product prices based on enhanced electrical functionality within
the glazing products. Year on year Glazing sales growth in H1 was
23.5% which is higher than the overall growth of 17.6% in vehicle
registrations, which is encouraging. We are seeing a two tier
structure appear in the industry supply base in Europe with
commodity products being increasingly sourced from Asia, whilst the
supply base for higher value added products, on which we are
focussed, has seen a contraction with smaller competitors leaving
the industry and very large competitors refocussing on other larger
market segments (such as battery packs).
(4) ACEA New Passenger Car Registration 19 July 2023
https://www.acea.auto/files/20230719_PRPC_2306-FINAL.pdf
(5) ACEA New Commercial Vehicle Registration 27 July 2023
https://www.acea.auto/files/20230727_PRCV_Q1-Q2_2023.pdf
Review of Operations
Our operations continue to benefit from the integrated sales,
engineering, programme management, purchasing, quality, production
and HR team which operates across our site, optimising the skills
of the team and the transfer of capabilities and capacity between
our two lines of business.
EV
The major step forward made in the first half of 2023 has been
the completion of our new production line for flexible printed
circuits (FPCs), used primarily in our Cell Contact Systems ("CCS")
but also increasingly for high end Glazing connectors. This line
benefitted from the GBP1.4m of funding provided under the Advanced
Propulsion Centre's ("APC") Scale-up Readiness Validation ("SuRV")
scheme which was awarded to us in September 2022. The line has a
capacity of around 180,000 units per annum, depending on the
dimensions of the pieces. The new factory layout has this FPC line
adjacent to the laminate busbar production line and both lead
directly into the CCS assembly and test operations. Investment in
these facilities continues, in particular, as we enhance our laser
assembly capabilities - requirement is currently estimated at
GBP1.8 million. The total value will depend on the exact size and
terms of nominations received over the coming months.
We also continue to engage with a growing number of mid-market
actual and prospective customers. We are today producing production
parts for two active customer CCS programmes and samples for
multiple programmes in development. Total revenues from these
activities in H1 were GBP0.6m (H12022: GBP0.6m).
Our pipeline for new EV programmes is developing strongly, with
leads exceeding our ability to respond in all cases, a factor that
emphasises the value of our strict mid-market focus and the
significance of our plans to further grow our people resources. At
the end of the half year, our Top 15 sales leads (based on strength
of engagement) had a total annualised sales value of GBP88m, with
typical annual sales ranging from GBP1m to GBP10m+ and with
production nomination dates ranging from 2023 to 2026. We remain
optimistic that we will be able to announce a next major EV
nomination in Q3.
We announced last August the notice purporting to terminate our
contract with a Croatian electric vehicle technology innovator for
the supply of cell management systems to a leading German OEM. We
believe we have reached an amicable settlement with this customer
which leaves us free of any further costs arising from this
dispute.
Glazing
Sales in H1 were GBP5.1m (H1 2022: GBP4.1m) which was ahead of
our expectations. This growth is the net outcome of increased
prices and demand partially offset by reduced volumes and we have
(in agreement with our customers) been stopping production of loss
making products. These changes will be completed in H2 2023 and as
a result we expect sales in H2 to be lower than in H1 2023.
However, gross margins have improved, from 8.6% in H1 2022 to 27.1%
in H1 2023 and further improvement is expected in H2 2023 despite
the decline in sales.
Throughout 2022 and into 2023, we have been working on a lean
turnaround of our Glazing operations and we are pleased with the
progress made which has been a further contributor to the improving
gross margins. The most obvious manifestation of these improvements
has been the transfer and re-layout of Connectors production into a
single building, which has improved productivity and when combined
with selective investments to reduce bottle necks has allowed us to
stop our night shift production (leaving this to provide a future
capacity increase of up to 50%). In addition to this change there
have been multiple other improvements including automation
projects, improved ERP functionality, implementation of EDI with
our customers, cross training and improved communications. In
aggregate, our production headcount is now 90 lower than its peak
level in November 2023 and we expect to see further rationalisation
in H2 2023.
The Glazing business is now looking to return to growth with new
production nominations being won or in the pipeline. We are intent
on delivering growth in both sales and margins through a focus on
higher value added products and our selective pipeline for these
types of products is developing strongly. At the end of the half
year, our top 15 leads (based on strength of engagement) had a
total annualised sales value of GBP2.9m with production nominations
expected over the next 12 months. We are optimistic that this will
deliver net Glazing sales growth in 2024 from its low point in H2
2023.
Outlook
For the full year 2023, the Board remains confident of meeting
market expectations.
Over the past year, we have focussed on strengthening our
business and enhancing our capabilities. We are pleased with the
platform for growth that has been developed. Converting these
growth prospects into production nominations is a key priority.
To capitalise to the maximum extent possible on the growth
opportunities we see ahead of us and to fully satisfy our customers
with delivery of the new production nominations we have won, we
plan to continue to ramp-up our investments in people, including
engineering, project management, quality sourcing and sales.
Consequently, we do not expect to deliver profitability ahead of
expectations.
Looking beyond 2023, we are greatly encouraged by the strength
of our new sales pipelines for both EV and Glazing and we expect to
be able to announce material profitable new sales nominations over
the coming months.
Financial Review
GBP'000 GBP'000
H1
2023 H1 2022
Glazing product sales 5,050 4,089
EV product sales 596 588
Total Revenues 5,646 4,677
Gross Margin 1,512 410
----------------------- -------- --------
Gross Margin % 26.7% 8.8%
Adjusted EBITDA 51 (1,636)
----------------------- -------- --------
Depreciation (544) (687)
Amortisation (34) 13
FX (17) 43
Taxation fees (14) -
Reorganisation (Staff
Exceptionals) - (91)
Share Based Payments (90) (62)
IPO Exceptionals - (382)
Operating Profit /
(Loss) (648) (2,802)
----------------------- -------- --------
Financing Costs (150) (81)
Tax 357 412
Net Income (441) (2,471)
----------------------- -------- --------
Glazing sales were up 23% compared to H1 2022, with EV sales up
over 40% on the same period after stripping out sales attributable
to the cancelled Croatian EV contract.
The price rises achieved on the Glazing products combined with
progress on materials cost reductions and reduced direct headcount
increased gross profit by GBP1.1m in absolute terms, and gross
margin from 8.8% to 26.7%. Overheads increased by 8% in H1 2023,
reflecting continued investment in the EV business and full period
run rates compared to 2022. The benefit to the business is deemed
greater than the percentage increase indicates as the total
increase from new hires improving capability and effectiveness was
partially offset by combining other roles to improve efficiency,
limiting the net headcount cost increase. H1 2023 also benefited
from GBP0.7m of SuRV Grant income.
The combination of an improving external market and the
proactive actions taken by the Company have led to a positive
adjusted EBITDA for H1 2023 of GBP0.05m, compared to an EBITDA loss
of GBP1.6m in H1 2022.
Financing costs have increased due to asset finance investments
and fees associated with the CID facility, but the Company has
benefited from high R&D Tax Credit payments, evidencing the
Knowledge Intensive Company status held and additional patent
applications are under active review.
Capital investment has been considerable, including for
additional Clean Rooms, Ink Jet Printer, upgraded Flexible Printed
Circuit wet cell and Automatic Optical Inspection unit to deliver
industry leading capabilities.
The stock reduction between H1 2022 and H1 2023 is flattered by
provisions made at the 2022 year end, but real improvements have
been made in H1 2023 and true reductions in stock holdings are
expected to continue in H2 2023, with this a priority focus for
management. Debtors have not increased in line with sales growth
due to improved debtor collections, with reduced overdues.
The Company has signed a new Confidential Invoice Discounting
facility ("CID"). The key terms of the CID are a GBP1.5m facility
limit, based on a 75% advance rate against eligible debtors, at
2.85% above base rate. Cash stood at GBP0.7m as at 30 June 2023,
with no draw down against the CID facility. The Company continues
to benefit from the government grant award to assist with the
scale-up of the EV business and R&D Tax Credit claims.
Statement of Consolidated Comprehensive Income f or the six
months ended 30 June 2023
Note Unaudited Unaudited
Six months Six months
ended 30 ended 30
June June
2023 2022
GBP'000 GBP'000
Revenue 3 5,646 4,677
Cost of sales (4,134) (4,267)
Gross profit 1,512 410
Other operating income 4 790 13
Administrative expenses
excluding exceptional
costs (2,950) (2,843)
Exceptional IPO related
expenses 5 - (382)
Total administrative
expenses (2,950) (3,225)
Operating loss (648) (2,802)
Finance costs (150) (81)
Loss before taxation (798) (2,883)
Taxation 6 357 412
Loss and total comprehensive
expense for the period (441) (2,471)
------------ -------------
Loss per share (pence)
Basic and diluted 7 (2.85) (17.8)
------------ -------------
Consolidated statement of Financial Position as at 30 June
2023
Notes Unaudited Audited Unaudited
30 June 31 December 30 June
2023 2022 2022
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 1,193 1,277 1,489
Right-of-use assets 1,201 1,151 1,287
Property, plant and
equipment 3,202 2,950 2,936
-------------
5,596 5,378 5,712
---------- ------------- ----------
Current assets
Inventories 1,518 1,848 2,316
Trade and other receivables 2,427 3,381 2,155
Corporation tax receivable 386 559 353
Cash and cash equivalents 736 1,290 3,134
---------- ------------- ----------
5,067 7,078 7,958
---------- ------------- ----------
Total assets 10,663 12,456 13,670
---------- ------------- ----------
LIABILITIES
Current liabilities
Trade and other payables (1,766) (3,045) (1,678)
Borrowings (483) (553) (567)
Lease liabilities (173) (182) (177)
-------------
(2,422) (3,780) (2,422)
---------- ------------- ----------
Non-current liabilities
Accruals and deferred
income (24) (37) (137)
Borrowings (846) (992) (945)
Lease liabilities (1,064) (995) (1,099)
Provisions (233) (227) (222)
(2,167) (2,251) (2,403)
---------- ------------- ----------
Total liabilities (4,589) (6,031) (4,825)
---------- ------------- ----------
Net assets 6,074 6,425 8,845
---------- ------------- ----------
EQUITY
Share capital 8 154 154 151
Share premium account 6,966 6,966 6,966
Merger reserve (100) (100) (100)
Other reserve (3) (3) -
Retained earnings (943) (592) 1,828
-------------
Total equity 6,074 6,425 8,845
---------- ------------- ----------
Consolidated statement of changes in equity
Share Share Merger Other Retained Total
capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2022 100 - (100) - 4,237 4,237
Loss and total comprehensive
expense for the period - - (2,471) (2,471)
Shares issued in the
period 51 6,966 - - - 7,017
Share based payment - - - - 62 62
--------- ---------
At 30 June 2022 151 6,966 (100) - 1,828 8,845
--------- --------- --------- --------- ---------- --------
Loss and total comprehensive
expense for the period - - - - (2,454) (2,454)
Shares issued in the
period 3 - - (3) - -
Share based payment - - - - 34 34
At 31 December 2022 154 6,966 (100) (3) (592) 6,425
--------- --------- --------- --------- ---------- --------
Loss and total comprehensive
expense for the period - - - - (441) (441)
Share based payment - - - - 90 90
At 30 June 2023 154 6,966 (100) (3) (943) 6,074
--------- --------- --------- --------- ---------- --------
Consolidated statement of cash flows for the six months ended 30
June 2023
Unaudited Unaudited
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Cash flow from operating activities
Loss for the financial period (441) (2,471)
Adjustment for:
Depreciation of property, plant
and equipment 435 285
Depreciation of right-of-use assets 109 171
Amortisation of intangible assets 84 229
Amortisation of government grants (49) (13)
Share based payment 90 62
Finance costs 150 81
Taxation credit (357) (412)
Changes in working capital:
Decrease/(increase) in inventories 330 (302)
Decrease in trade and other receivables 954 1,623
Decrease in trade and other payables (1,237) (2,707)
------------ ---------------------
Cash generated from/(used in)
operations 68 (3,454)
Income tax received 530 -
------------ ---------------------
Net cash from/(used in) operating
activities 598 (3,454)
------------ ---------------------
Cash flow from investing activities
Purchase of property, plant and
equipment (604) (132)
Purchase of intangible assets - (157)
Net cash used in investing activities (604) (289)
------------ ---------------------
Cash flow from financing activities
Shares issued (net of issue costs) - 7,017
Interest paid (150) (81)
Payment of lease liabilities (99) (114)
Repayment of bank loans (19) -
Repayment of capital element of
hire purchase contracts (280) (282)
-------- --------
Net cash (used in)/generated from
financing activities (548) 6,540
-------- --------
(Decrease)/increase in cash and
cash equivalents (554) 2,797
-------- --------
Net cash and cash equivalents at
beginning of the period 1,290 337
Net cash and cash equivalents
at end of the period (all cash
balances) 736 3,134
-------- --------
Notes to the interim consolidated financial statements f or the
six months ended 30 June 2023
1. Corporate information
Strip Tinning Holdings plc is a public company incorporated in
the United Kingdom. The registered address of the Company is Arden
Business Park, Arden Road, Frankley Birmingham, West Midlands, B45
0JA.
The principal activity of the Company and its subsidiary (the
'Group') is the manufacture of automotive busbar, ancillary
connectors and flexible printed circuits.
2. Accounting policies
Basis of preparation
This unaudited condensed consolidated interim financial
statements for the six months ended 30 June 2023 and 30 June 2022
have been prepared in accordance with UK adopted international
accounting standards ("IFRS") including IAS 34 'Interim Financial
Reporting'.
The accounting policies applied by the Group include those as
set out in the financial statements for the year ended 31 December
2022 and are consistent with those to be used by the Group in its
next financial statements for the year ending 31 December 2023.
There are no new standards, interpretations and amendments which
are not yet effective in these financial statements, expected to
have a material effect on the Group's future financial
statements.
The financial information does not contain all of the
information that is required to be disclosed in a full set of IFRS
financial statements. The financial information for the six months
ended 30 June 2023 and 30 June 2022 is unreviewed and unaudited and
does not constitute the Group's statutory financial statements for
those periods.
The comparative financial information for the full year ended 31
December 2022 has, however, been derived from the audited statutory
financial statements for Strip Tinning Holdings plc for that
period. A copy of those statutory financial statements has been
delivered to the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not contain a statement
under section 498(2)-(3) of the Companies Act 2006.
These policies have been applied consistently to all periods
presented, unless otherwise stated.
The interim financial information has been prepared under the
historical cost convention with the exception of fair value
calculations applied in accounting for share based payments. The
financial information and the notes to the historical financial
information are presented in thousands of pounds sterling
('GBP'000'), the functional and presentation currency of the Group,
except where otherwise indicated.
Going concern
After making appropriate enquiries, the directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for at least twelve months from
the date of approval of the financial information. In adopting the
going concern basis for preparing the financial statements, the
directors have considered a base case going concern model. The
results of this model suggested that with the financing
arrangements available to the business and / or realistic
mitigating actions, the Group has adequate resources to continue in
operational existence. For this reason, the directors continue to
adopt the going concern basis in preparing the Group's financial
information.
3. Segmental and geographical destination reporting
IFRS 8, Operating Segments, requires operating segments to be
identified on the basis of internal reports that are regularly
reviewed by the company's chief operating decision maker. The chief
operating decision maker is considered to be the executive
Directors.
The operating segments are monitored by the chief operating
decision maker and strategic decisions are made on the basis of
adjusted segment operating results. All assets, liabilities and
revenues are located in, or derived in, the United Kingdom. In
addition to the established automotive glazing products business
('Glazing' segment), the Group has commenced the development and
initial sales of components for electric vehicle battery packs
('EV' segment) which are expected to grow to be a material segment.
Many of the Glazing products are used on electric vehicles but
these reman classified as Glazing not EV products. Separate
management reporting and information is prepared at a revenue and
gross profit level only for the Glazing and EV segments as
follows:
Glazing EV Total
6 months ended 30 June 2023 GBP'000 GBP'000 GBP'000
Revenue 5,050 596 5,646
Cost of sales (3,680) (454) (4,134)
-------- -------- --------
Gross profit 1,370 142 1,512
-------- -------- --------
Glazing EV Total
6 months ended 30 June 2022 GBP'000 GBP'000 GBP'000
Revenue 4,089 588 4,677
Cost of sales (3,736) (531) (4,267)
-------- -------- --------
Gross profit 353 59 412
-------- -------- --------
Turnover with the largest customers (including customer groups)
representing in excess of 10% of total revenue in the period for 2
customers (2022: 3 customers) has been as follows:
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Customer A 1,575 908
Customer B 711 1,060
Customer C 491 555
All revenue arises at a point in time and relates to the sale of
automotive busbar, ancillary connectors and flexible printed
circuit product. Turnover by geographical destination is as
follows:
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
UK 706 418
Rest of Europe 2,738 2,842
Rest of the World 2,202 1,417
----------- -----------
5,646 4,677
----------- -----------
4. Other operating income
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Government revenue development 741 -
grants
Amortisation of capital grants 49 13
----------- -----------
790 13
----------- -----------
T he group was awarded a GBP1.484m UK innovation development
grant in respect of revenue expenditure with GBP741,000 recognised
against eligible costs in the period. GBP389,000 was recognised in
the second half of 2022 with GBP354,000 expected to be recognised
in the remainder of 2023.
5. Exceptional costs
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
IPO related costs - 382
-------------- -----------
The directors consider that the specific professional fees and
costs incurred in preparation for the IPO and connection with the
admission process are exceptional as they are non-recurring in
nature and not related to the underlying trading. The majority of
the fees were recorded against the share premium account as they
relate to the new shares issued with the balance expensed.
6. Income tax
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Current tax:
UK corporation tax 78 74
Adjustments in respect of prior 279 -
periods
Total current tax credit 357 74
Deferred tax:
Origination and reversal of
temporary differences - 338
-
Total deferred tax credit - 338
Total tax credit 357 412
----------- -----------
The credit for the period can be reconciled to the loss for the
period as follows:
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Loss before taxation (798) (2,883)
----------- -----------
Income tax calculated at
22% (2022: 19%) (176) (548)
Expenses not deductible 20 88
Enhanced research and development
allowances (12) (32)
Enhanced capital allowances (20) (6)
Deferred tax not recognised 110 220
Adjustments in respect (279) -
of prior periods
Effect of differing deferred
tax and current period
tax rates - (134)
Total tax credit (357) (412)
----------- -----------
The tax rate used to calculate deferred tax is 25% at 30 June
2023 (2022: 25%), being the rate at which the timing differences
were expected to unwind based on enacted UK corporate tax
legislation at each balance sheet date.
A deferred tax asset has not been recognised for losses carried
forward as, the key accounting judgement made is that it is not yet
considered sufficiently probable that the losses will be utilised
in the short term.
7. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following data:
Earnings Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Loss for the purpose of basic
and diluted earnings per share
being net loss attributable
to the shareholders (441) (2,471)
------------- -------------
Six months Six months
ended 30 ended 30
June 2023 June 2022
Number of shares
Weighted average number of
ordinary GBP0.01 shares for
the purposes of basic and
diluted loss per share 15,459,714 13,895,056
-------------
There were options in place over 734,505 shares at 30 June 2023
(2022: 254,051) that were anti-dilutive at the period end but which
may dilute future earnings per share.
8. Share capital
The movements in share capital have been as follows:
Number Nominal Share premium
of GBP0.01
shares
GBP'000 GBP'000
Share issued on incorporation 1 - -
Shares issued in exchange for Strip
Tinning Limited shares 9,999,999 100 -
EIS and VCT placing shares issued
at GBP1.85 each 2,702,702 27 4,973
Other placing shares issued at
GBP1.85 each 1,621,622 16 2,984
Exercise of options at GBP0.116
each 813,045 8 86
Share issue costs (1,077)
------------ -------- --------------
At 30 June 2022 15,137,369 151 6,966
Shares issued to employee benefit
trust at GBP0.01 each 322,345 3 -
------------ -------- --------------
At 31 December 2022 and 30 June
2023 15,459,714 154 6,966
------------ -------- --------------
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END
IR FLFLAAIISIIV
(END) Dow Jones Newswires
September 05, 2023 02:00 ET (06:00 GMT)
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