THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
12 November
2024
Microsaic Systems plc
("Microsaic", "Microsaic
Systems" or the "Company")
Interim Results for the six months ended 30 June
2024
Change of Registered Office
Proposed change of name
Microsaic Systems plc (AIM: MSYS), an international
developer and provider of testing solutions for unique and
underserved public health and environmental markets, is pleased to
announce its unaudited interim results for the six months ended 30
June 2024 ("H1 24").
Bob Moore, Acting
Executive Chairman of Microsaic Systems plc, commented:
"2023 was an
extremely challenging year for the Company resulting in a complete
restructure of the organisation in 2024.The first six months of
2024 has seen a transformational re-focus of the Microsaic Group
following the equity fund raise and acquisition of the assets of
Modern Water. A total reset of the business has been achieved as a
result. After initial restructuring, new setup costs and investment
to integrate the acquisition of the assets of Modern Water with
Microsaic Systems, the Company is now well positioned to move
forward with its comprehensive portfolio of testing and analytical
technologies particularly in the water quality, safety, public
health and environment protection sectors. As a purpose driven
newly integrated business, we plan to be a market leader in these
critically important fields for human wellbeing and our natural
world."
H1 24 Financial Highlights
·
Unaudited Group revenues of £255k: an increase of
83% on (H1 23: £139k)
•
Modern Water subsidiary revenues of
£185k
•
Microsaic subsidiary revenues of £70k (H1 23:
£139k)
·
Group gross profit was £122k (H1 23: loss
£6k)
·
Group Adj.* EBITDA loss of £477k, a reduction of
53% compared to H1 23 Adj. EBITDA loss (£1,022k)
·
Group total comprehensive loss of £536k, a
reduction of 50% compared to H1 23 loss (£1,078k)
·
Cash at 30 June 2024 was £982k (H1 23: £587k) and
Company is debt free
*Loss of earnings before interest, tax, depreciation,
amortisation and other items such as share-based payments and
exceptional one-off expenditure.
Operational highlights
·
Completion of a net £1.8m equity funding round in
January 2024
·
Completion and integration of the business assets
of Modern Water, purchased for £100,000
·
The Company received £262k in a research and
development tax reclaim from HMRC
·
Fit-out and validation of new 1,800 sq ft facility
in York, new production, sales and support teams hired
·
Secured UK based supply chain for production of
equipment, consumables and reagents
·
Passed ISO9001 audit and implemented comprehensive
Quality Management System (QMS) including electronic document
management systems to integrate Modern Water processes
·
Re-established distribution and sales network for
Modern Water with revenues commencing in May 2024
·
An agreement was signed to provide water
monitoring analysis systems for Doha, Qatar. During the first six
months period revenues of over £143k have been booked to Modern
Water from this ongoing project
·
The Company's technologies were showcased at the
Singapore International Water week in June 2024 sponsored by the UK
Department of Business and Trade
Post Period Events
·
Appointment of Graham Mullis as Strategic Advisor
to the Board of Directors
·
Completion of installation of 27 Continuous Toxic
Monitoring (CTM) devices in Doha, Qatar with potential to install
additional CTM's in early 2025
·
The Company's technologies were showcased at
WEFTEC in October, the largest water quality event in the
US
·
Change of name of Microsaic Systems plc to Metir
plc with retention of product names in trading subsidiaries
(subject to shareholder approval)
·
Production at our York laboratory of bio-reagents
for all our MicroTox® devices (CTM, LX and FX) fully operational
with increasing sales pipeline to exisiting and new Modern Water
customers
·
Redesign of laboratory based MicroTox® LX devices
completed with manufacturing starting and shipping in December 2024
to meet overseas customer confirmed sales and enquiries
·
Starting trial partnership with Siemens and CAD-IT
to incorporate machine learning data analysis software (AI) on our
CTM's and other devices
·
Multi Pathogen Detector for in-line real time data
(including viruses) detection based on Company's exisiting
prototype developed to detect Covid-19 in water to be introduced in
2025
Current Trading & Outlook
The first six months of 2024 saw management direct
its time with investment in infrastructure and re-establishing
customer relationships with a focus on the Modern Water subsidiary.
The Board is pleased with the response from customers and suppliers
and the early revenues generated from this operating subsidiary.
This revenue progress and financial performance improvement is
expected to continue during the second half of this year with a
growing order book from existing and new customers. The Company is
also focused on supply-chain management and as revenues, the Board
is also targeting an improvement in gross margins through product
mix and economies of scale. The Company has many developments
currently underway, as listed under 'Post Period Events' above and
plans to provide a more detailed operational update shortly.
A copy of these interim results is being made
available on the Company's website at https://www.microsaic.com/investors/,
and hard copies will be sent to shareholders who have requested
communications in that format. Furthermore, the Company confirms
that the annual report and audited financial results for the year
ended 31 December 2023 was posted to shareholders who have
requested communications in that format following publication on 11
October 2024.
Enquiries:
|
Microsaic Systems
plc
Bob Moore, Acting Executive Chairman
|
+44 (0) 20 3657 0050
via TPI
|
|
|
|
|
Singer Capital
Markets
(Nominated Adviser & Joint Broker)
Alex Bond / Oliver Platts
|
+44 (0)20 7496 3000
|
|
|
|
|
Turner Pope
Investments (TPI) Limited
(Joint Broker)
Andy Thacker / James Pope
|
+44 (0) 20 3657 0050
|
About Microsaic Systems
Microsaic is highly
experienced in the development, manufacture and supply of
microelectronics instrumentation for markets requiring analytical
testing in public and environmental health markets. The Company has
recently acquired and integrated the assets of Modern Water with
Microsaic Systems' technologies resulting in comprehensive water
testing and other toxic testing capabilities.
Microsaic's
products and solutions are commercially available through global
markets via a network of regional and country specific distributors
and partners.
Chairman's
Statement
First, I would like to apologise for the late filing
of the 2023 accounts and consequent late filing of our 2024 interim
accounts. 2023 was an extremely challenging year for the Company
caused primarily by the collapse of DeepVerge plc, the main debtor
to the Company resulting in major directorate and management
changes and the suspension of trading of the Company's shares on
AIM.
The decision in Q4 2023 to raise new equity on AIM
for the Company to remain as a going concern and to acquire the
Modern Water business, which completed in January 2024, has enabled
the Company to totally reset and reinvent its business model. The
Company has become a leading water security, monitoring and
analysis business combining the early warning technologies supplied
by Modern Water technologies with the gold standard mass
spectrometer detailed analysis capabilities of Microsaic.
The Company has deployed the necessary financing to
upgrade the acquired Modern Water assets and provide capital to
invest in and develop the enlarged business. The acquired assets
are complementary to the existing Microsaic business model.
Following acquisition of the Modern Water business the Company set
out to engage with previous customers to re-establish relationships
and to instigate a new sales pipeline. Using the acquired assets,
we restarted the manufacture of the MicroTox® bio-reagents (the
consumables for our Modern Water testing devices) late in Q2 2024
at our new laboratory near York, England.
Microsaic's overall cost base has been substantially
reduced and we now operate a leaner, more efficient business model
for our acquired water testing technologies and manufacturing of
our mini-mass spectrometer devices. We have reset and redesigned
the Company around a new and much more efficient model based on the
integration of the enlarged business to optimise growth of sales,
solutions and services income to be generated by the combined
entities.
Business
Strategy
Following the total business reset and acquisition of
the Modern Water business in January 2024, the Company's objective
is to become a leading international business offering testing
solutions for unique and under-served markets. The Company has an
initial strategic focus to provide and develop proprietary
technologies for testing and monitoring toxins in water and
industrial effluents. By owning the assets of Modern Water, the
Company has gained the right to manufacture and supply a wide range
of proprietary technology devices for detecting toxins in water and
liquids using MicroTox® bio-reagent consumables. The Company will
operate in a water testing market which is worth USD 4.45 billion
in 2022 and growing at 6.1% compound rate per annum from 2023-2030
(ref Grand View Research report GVR-68040-069-5) and has unique
products that are immediately able to generate revenues and
therefore generate cash-flow. In the near term, most of the
company's income is expected to come from the Modern Water part of
the business.
The unique and proprietary mini mass spectrometers
developed and supplied by the Microsaic Systems subsidiary
complements the Modern Water devices. The Company is becoming a
leading water security, monitoring and analysis business combining
the early warning technologies supplied by Modern Water
technologies with its gold standard mass spectrometer detailed
analysis capabilities.
By integrating the businesses and combining the
detailed analysis only available through mass spectrometry
techniques, the company now offers a unique and comprehensive suite
of devices and capabilities for detecting and identifying toxins in
water and effluents. We have collectively named this the 'Tethys
Purity® solution'.
As the financial performance of the Company grows and
subject to resources, the Company will evaluate new markets that
its current technologies can provide unique testing solutions for
and either pursue this organically, inorganically or through other
means such as partnerships and licensing.
Proposed change of
name
Microsaic plans to rebrand to reflect the broader
number of market opportunities its suite of technologies can now
serve by changing its name to Metir plc (subject to shareholder
approval) as part of the reset strategy. The branding in its
operating subsidiary companies of Modern Water and Microsaic
Systems are, however, well established and recognised trading brand
names and will be maintained. It is expected that shareholder
approval will be sought at the Company's upcoming AGM.
Appointment of
adviser
We are pleased to announce that Graham Mullis has
agreed to become an adviser to the Board to assist the company with
its business strategy, development and growth plans. Graham is a
seasoned healthcare entrepreneur with a track record of leading and
growing multiple companies, creating close to £1 Billion in
shareholder value during his 25-year executive career. As the
former CEO of Biocompatibles Eyecare, ClearLab International,
Optivue, Lab21 and Novacyt, he brings extensive strategic,
commercial, and corporate experience whilst operating across London
AIM, Paris Euronext and NASDAQ financial markets. With the last
fifteen years dedicated to the diagnostics testing markets,
including human, research, animal, water and environmental sectors,
Graham is well positioned to offer invaluable guidance and
experience to support the planning of Microsaic's strategic growth
and performance.
Cash
Position
Within its FY23 Final Results Announcement released
on 11 October 2024, the Company provided a detailed update on its
cash flow projections together with a sensitivity analysis
exploring a severe but plausible downside scenario. The Directors
confirm that this assessment remains as accurate as at today's date
and remind readers that, under the reverse stress test performed, a
minimum sales level of approximately £84k per month, in addition to
the Qatar contract, is required to enable the Company to remain
liquid and with positive cash headroom over the next twelve months.
While the directors consider this to be an achievable target, it is
acknowledged that this exceeds the level of turnover experienced in
the year ending 31 December 2023 or in 2024 to date.
The Company had net cash as at 11 November 2024 of
£257k. It is expecting to receive VAT repayments totalling
approximately £75k across November 2024 and December 2024 and
approximately £194k from a customer based in the Middle East in
November 2024. These payments will materially improve the Company's
cash position.
STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
|
|
|
6
months
|
6
months
|
Year to
31
|
|
|
|
to 30
June
|
to 30
June
|
December
|
|
|
|
2024
|
2023
|
2023
|
|
|
Notes
|
Unaudited
|
Unaudited
|
Audited
|
|
|
|
|
|
|
|
|
|
£000s
|
£000s
|
£000s
|
|
Revenue
|
4
|
255
|
139
|
492
|
|
Cost of sales
|
5
|
(133)
|
(145)
|
(193)
|
|
Gross profit
|
|
122
|
(6)
|
299
|
|
Other operating income
|
|
-
|
-
|
-
|
|
Research and development
expenses
|
|
-
|
(312)
|
|
|
Impairment of related party
debt
|
|
-
|
-
|
(6)
|
|
Other operating expenses
|
|
(674)
|
(853)
|
(2,876)
|
|
Total operating expenses
|
|
(674)
|
(1,165)
|
(2,882
|
|
Loss
from operations before share-based payments
|
|
(552)
|
(1,171)
|
(2,583)
|
|
Share-based payments
|
11
|
-
|
-
|
(21)
|
|
Loss
from operations after share-based payments
|
|
(552)
|
(1,171)
|
(2,604)
|
|
Financial cost
|
|
|
(1)
|
(5)
|
|
Finance income
|
|
16
|
13
|
13
|
|
Loss
before tax
|
|
(536)
|
(1,159)
|
(2,597)
|
|
Tax on loss on ordinary
activities
|
|
|
81
|
-
|
|
Total comprehensive loss for the period
|
|
(536)
|
(1,078)
|
(2,597)
|
|
|
|
|
|
|
|
Loss
per share attributable to the equity holders of
|
|
|
|
|
|
the
Company
|
|
|
|
|
|
Basic and diluted loss per ordinary
shares
|
6
|
(0.008)p
|
(0.017)p
|
(0.041)p
|
|
|
|
|
|
|
Note that the above revenues in the 6 months to 20
June 2024 include £144,000 in respect of an ongoing contract with
Avanceon for installation of Continuous Toxic Monitoring (CTM)
equipment in Doha, Qatar.
|
STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT 30 JUNE 2024
|
|
|
30
June
|
30
June
|
31
December
|
|
|
|
2024
|
2023
|
2023
|
|
|
Notes
|
Unaudited
|
Unaudited
|
Audited
|
|
|
|
|
|
|
|
|
|
£000s
|
£000s
|
£000s
|
|
ASSETS
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Intangible assets
|
|
75
|
60
|
53
|
|
Property, plant and
equipment
|
|
133
|
287
|
113
|
|
Right of use assets
|
|
-
|
38
|
-
|
|
Total non-current assets
|
|
208
|
385
|
166
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
265
|
284
|
103
|
|
Trade and other
receivables
|
|
426
|
448
|
10
|
|
Corporation tax
receivable
|
|
-
|
343
|
261
|
|
Cash and cash equivalents
|
|
982
|
587
|
173
|
|
Total current assets
|
|
1,673
|
1,662
|
547
|
|
TOTAL ASSETS
|
|
1,881
|
2,047
|
713
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
1,748
|
1,731
|
1,731
|
|
Share premium
|
|
30,095
|
28,262
|
28,263
|
|
Share-based payment
reserve
|
|
-
|
2,316
|
-
|
|
Retained losses
|
|
(30,386)
|
(30,669)
|
(29,850)
|
|
Total Equity
|
|
1,457
|
1,640
|
144
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
387
|
219
|
519
|
|
Lease liability
|
|
18
|
18
|
8
|
|
Total current liabilities
|
|
405
|
237
|
527
|
|
Non-current liabilities
|
|
|
|
|
|
Provision
|
9
|
19
|
149
|
30
|
|
Lease liability
|
|
-
|
21
|
13
|
|
Total non-current liabilities
|
|
19
|
170
|
43
|
|
Total liabilities
|
|
424
|
407
|
570
|
|
TOTAL EQUITY AND LIABILITIES
|
|
1,881
|
2,047
|
713
|
|
|
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
AS AT 30 JUNE 2024
|
|
|
|
|
|
Share
based
|
|
|
|
|
|
Share
|
Share
|
payment
|
Retained
|
Total
|
|
|
|
capital
|
premium
|
reserve
|
Losses
|
equity
|
|
|
|
£000s
|
£000s
|
£000s
|
£000s
|
£000s
|
|
|
|
|
|
|
|
|
|
At
1 January 2023
|
|
1,731
|
28,262
|
2,401
|
(29,675)
|
2,719
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the
period
|
|
-
|
-
|
-
|
(1,079)
|
(1,079)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
Shares issued
|
|
|
|
-
|
-
|
|
|
Transfer in respect of lapsed share
options
|
|
-
|
-
|
(85)
|
85
|
-
|
|
Share based payments share
options
|
|
-
|
-
|
|
-
|
|
|
At
30 June 2023
|
|
1,731
|
28,262
|
2,316
|
(30,669)
|
1,640
|
|
|
|
|
|
|
|
|
|
At
1 July 2023
|
|
1,731
|
28,262
|
2,316
|
(30,669)
|
1,640
|
|
Total comprehensive loss for the
period
|
|
-
|
-
|
-
|
(1,518)
|
(1,518)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
Transfer in respect of directors'
warrants exercised
|
|
-
|
-
|
(1,503)
|
1,503
|
-
|
|
Transfer in respect of lapsed share
options
|
|
-
|
-
|
(834)
|
834
|
-
|
|
Share based payments-share
options
|
|
-
|
-
|
21
|
-
|
21
|
|
At
31 December 2023
|
|
1,731
|
28,262
|
-
|
(29,850)
|
143
|
|
|
|
|
|
|
|
|
|
At
1 January 2024
|
|
1,731
|
28,262
|
-
|
(29,850)
|
143
|
|
Total comprehensive loss for the
period
|
|
-
|
-
|
-
|
(536)
|
(536)
|
|
Transactions with owners
|
|
|
|
|
|
|
|
Transfer in respect of lapsed share
options
|
|
|
|
|
|
-
|
|
Shares issued
|
|
17
|
1,833
|
|
|
1,850
|
|
Share based payments share
options
|
|
|
-
|
-
|
-
|
-
|
|
At
30 June 2024
|
|
1,748
|
30,095
|
-
|
(30,386)
|
1,457
|
|
STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
|
|
|
|
|
|
6
months
|
6
months
|
Year to
31
|
|
|
|
to 30
June
|
to 30
June
|
December
|
|
|
|
2024
|
2023
|
2023
|
|
|
Notes
|
Unaudited
|
Unaudited
|
Audited
|
|
|
|
£
|
£
|
£000s
|
|
Cash flows from operating activities
|
|
|
|
|
|
Cash absorbed by
operations
|
12
|
(1,191)
|
(871)
|
(1,311)
|
|
Corporation tax received
|
|
262
|
253
|
253
|
|
Net
cash used in operating activities
|
|
(929)
|
(618)
|
(1,058)
|
|
Cash flows from investing activities
|
|
|
|
|
|
Purchases of intangible
assets
|
|
(38)
|
(5)
|
(11)
|
|
Purchases of property, plant and
equipment
|
|
(90)
|
(23)
|
(2)
|
|
Proceeds from sale of Non-current
assets
Interest received
|
|
-
16
|
13
|
48
13
|
|
Net
cash used in investing activities
|
|
(112)
|
(15)
|
48
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds from share
issues
|
|
1,850
|
-
|
-
|
|
Share issue costs
|
|
|
-
|
-
|
|
Repayment of lease
liabilities
|
|
|
(20)
|
(59)
|
|
Net
cash from/(used in) financing activities
|
|
1,850
|
(20)
|
(59)
|
|
Net
increase/(decrease) in cash and cash equivalents
|
|
809
|
(653)
|
(1,069)
|
|
Cash and cash equivalents at
beginning of the year
|
|
173
|
1,241
|
1,241
|
|
Cash and cash equivalents at the end of the
period
|
|
982
|
588
|
173
|
NOTES TO THE INTERIM FINANCIAL INFORMATION
(UNAUDITED)
1.
Nature of Operations
Microsaic Systems plc (the "Company") is registered
in England and Wales. The Company's registered office is at York
Eco Business Centre, Amy Johnson Way, York, England YO30 4AG, with
effect from 22 March 2024. The Company has two wholly (100%) owned
subsidiaries, Modern Water (U.K.) Ltd and Microsaic Systems Trading
Ltd, so the financial information relates to these consolidated
accounts together with the parent company. Microsaic is a high
technology company supplying Modern Water
analytical instruments utilising the MicroTox® bio-reagent brand
manufactured at our new dedicated laboratory near York, England.
The Company also manufactures miniaturised mass
spectrometers that are designed to be utilised at point-of-need
testing which can be used complimentary to Modern Water
technologies including PFAS detection.
2. Basis of preparation
The interim financial statements of the Company for
the six months ended 30 June 2024, which are unaudited, have been
prepared in accordance with the accounting policies set out in the
annual report and accounts for the year ended 31 December 2023,
which were prepared under International Financial Reporting
Standards ("IFRS").
This report does not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006 and has not been
audited. The financial information for the full preceding year is
based on the statutory accounts for the year ended 31 December
2023. Those statutory accounts have been published and will shortly
be filed with the Registrar of Companies. The auditor's report on
those statutory accounts was unqualified.
As permitted, this interim report has been prepared
in accordance with the AIM Rules for Companies and not in
accordance with IAS 34 "Interim Financial Reporting" and therefore
it is not fully compliant with IFRS.
The interim financial statements are presented in
pounds sterling.
3. Critical accounting estimates and judgements
Accounting estimates and judgements are continually
evaluated and are based on past experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances.
The Company makes estimates and assumptions
concerning the future. The resulting accounting estimates could, by
definition, differ from the actual outcome.
Estimates and adjustments that have a risk of causing
a material adjustment to the carrying amounts of assets and
liabilities are set out in the annual report and accounts for the
year ended 31 December 2023, and no additional items have been
identified.
4. Revenues
IFRS 15 provides a single, principles based,
five-step model to be applied to all contracts with customers. The
five-step framework includes:
· Identify
the contract(s) with a customer;
· Identify
the performance obligations in the contract;
· Determine
the transaction price;
· Allocate
the transaction price to the performance obligations in the
contract; and
· Recognise
revenue when the entity satisfies a performance obligation.
The Company recognises revenue from the following
four sources:
· Sale of
products;
· Sale of
consumables and spare parts;
· Product
service and product support; and
·
Consultancy services.
All revenues and trade receivables arise from
contracts with customers. Revenue is measured based on the
consideration which the Company expects to be entitled in a
contract with a customer and excludes amounts collected on behalf
of third parties. The sale of products, consumables and spare
parts are recognised when the sole performance
obligation is met which is usually on delivery to the customer. For
product service, product support and consultancy services revenue,
the performance obligation is satisfied over the duration of the
service period and revenue is recognised in line with the
satisfaction of the performance obligation.
Sale of
products
The Company sells a wide range of Modern Water
analytical and toxic water and effluent testing equipment utilising
our MicroTox® consumable bio-reagents. The Company also sells mini
mass spectrometers (Microsaic 4500 MiD®) mainly through OEMs and
distributors. A small proportion of its sales are direct to the
customer. Discounts are offered and agreed as part of the
contractual terms. Terms are generally Ex Works so control passes
when the customer collects the goods. Payment terms are generally
30 days from the date of invoice.
Sales of
consumables and spare parts
The Company sells consumables and spare parts mainly
through OEMs and distributors. Terms are generally Ex Works so
control passes when the customer collects the goods. Discounts are
offered and agreed as part of the contractual terms. Payment terms
are generally 30 days from the date of invoice.
Product service and
product support revenue
Service and support to our OEMs, distributors and
systems integrators includes training their sales and service teams
and servicing the products from time to time. Discounts are offered
and agreed as part of the contractual terms. Terms are Ex Works so
control passes when the customer receives the service. Payment
terms are generally 30 days from the
date of invoice.
Usually, there is no obligation on the Company for
returns, refunds or similar arrangements. Also, the Company does
not manufacture specific items to a customer's specification and no
financing component is included in the terms with customers.
The Company provides assurance warranties which are
15 months from the date of shipment for OEMs and distributors.
These warranties confirm that the product complies with agreed-upon
specifications. The Company is looking to provide service
warranties in the future to direct customers in Europe, where the
revenue from such warranties will be recognised over the period of
the service agreement.
Consultancy
services revenue
Consultancy services comprise science and engineering
consultancy, laboratory services and monitoring services. These
services are delivered over a period of time usually in accordance
with a master services agreement and/or statement of works with an
agreed outcome at the end of the project or project phase.
Consultancy services revenue is recognised by
reference to the stage of completion of the project or project
phase at the balance sheet date as follows:
· Where
there are defined project or project phase milestones, the revenue
is recognised in full on completion of the project or project phase
and on a time basis for the stage of completion where the project
or project phase is not completed at the balance sheet date. The
stage of completion is recognised as the proportion of time spent
on the project or project phase compared with the total time
anticipated to complete the project or project phase; and/or
· Where the
project is defined with the client in terms of time spent, the
revenue is recognised on the basis of consulting time spent on the
project by the Company at the time-based rates agreed with the
client.
The geographical analysis of revenues (by location of
shipment) was as follows:
|
|
6
months
|
6
months
|
Year to
31
|
|
|
to 30
June
|
to 30
June
|
December
|
|
|
2024
|
2023
|
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£000s
|
£000s
|
£000s
|
|
UK
|
3
|
11
|
109
|
|
USA
|
70
|
2
|
10
|
|
EU
|
23
|
72
|
137
|
|
China
|
|
54
|
215
|
|
ROW
|
159
|
-
|
21
|
|
|
255
|
139
|
492
|
|
|
|
|
|
|
The product group analysis of
revenues was as follows:
|
|
|
6
months
|
6
months
|
Year to
31
|
|
|
to 30
June
|
to 30
June
|
December
|
|
|
2024
|
2023
|
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£000s
|
£000s
|
£000s
|
|
Product/Unit
|
197
|
47
|
286
|
|
Consumables and spares
|
43
|
13
|
98
|
|
Service and support
income
|
15
|
79
|
108
|
|
Less: Sales to DeepVerge
plc
|
255
|
139
(65)
|
492
(65)
|
Total Sales to customers (excluding
DeepVerge plc)
255
74
427
5. Cost of sales
Cost of sales of
products
The cost of sales of Modern Water, mass spectrometers
and related equipment is the bought in purchase cost of the product
or the transfer value from stock value if an item has been
previously written down. Usually, the sale is made on an Ex-Works
basis but if it were not the cost of delivery to the customer is
also included in cost of sales.
Cost of sales of
consumables and spare parts
The cost of sales of consumable and spare parts is
the bought in purchase cost of the consumable or spare part or the
transfer value from stock value if an item has been previously
written down. Usually, the sale is made on an Ex-Works basis but if
it were not the cost of delivery to the customer is also included
in cost of sales.
Cost of sales of
product service and product support income
The cost of sales of service and support income is
the time-based apportionment of the employment costs of the
relevant staff spent on the delivery of the service and support
income plus any related costs of fulfilment such as travel expenses
and any externally incurred direct costs. For the purposes of cost
of sales, the employment costs are considered to be salaries,
pensions and employers national insurance but does not include
share-based payments nor any apportionment of training or
overheads.
Cost of sales of
consultancy services revenue
The cost of sales of consultancy services (comprising
science and engineering consultancy, laboratory services and
monitoring services) is the time-based apportionment of the
employment costs of the relevant staff spent on the delivery of
this revenue plus any related costs of fulfilment such as travel
expenses and any externally incurred direct costs. For the purposes
of cost of sales, the employment costs are considered to be
salaries, pensions and employers national insurance but does not
include share-based payments nor any apportionment of training or
overheads.
6. Loss per share
|
|
6
months
|
6
months
|
Year to
31
|
|
|
to 30
June
|
to 30
June
|
December
|
|
|
2024
|
2023
|
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
|
|
|
|
Comprehensive loss attributable to
equity
|
(536)
|
(1,078)
|
(2,597)
|
|
shareholders (£000s)
|
|
|
|
|
Weighted average number of ordinary
|
|
|
|
|
shares for the purpose of
basic
|
164,321,042
|
6,324,666,516
|
6,361,365,146
|
|
and diluted loss per
share
|
|
|
|
|
Basic and diluted loss per ordinary
share (p)
|
(0.34)p
|
(0.017)p
|
(0.041)p
|
7. EBITDA Adjusted Loss
A key indicator of
performance for the Company is Adjusted EBITDA Loss (Loss of
earnings before interest, tax, depreciation, amortisation and other
items such as share-based payments and exceptional one-off
expenditure). Detailed below is the Adjusted EBITDA Loss for the
period:
|
|
6
months
|
6
months
|
Year
to
|
|
|
to 30
June
|
to 30
June
|
31-Dec
|
|
|
2024
|
2023
|
2023
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
|
£000s
|
£000s
|
£000s
|
|
Comprehensive loss for
period
|
(536)
|
(1,078)
|
(2,597)
|
|
Adjust for:
|
|
|
|
|
Tax on loss on ordinary
activities
|
-
|
(81)
|
-
|
|
Depreciation of property, plant and
equipment
|
60
|
95
|
183
|
|
Depreciation of right of use
assets
|
|
38
|
76
|
|
Amortisation of
Intangibles
|
15
|
14
|
27
|
|
Net finance cost/(income)
|
(16)
|
(10)
|
(8)
|
|
Share-based payments (excluding fee
shares)
|
|
-
|
(21)
|
|
EBITDA Adjusted Loss
|
(477)
|
(1,022)
|
(2,340)
|
8. Employees and employment related costs
|
|
6
months
to 30 June
|
6
months
to 30 June
|
Year to
31
December
|
|
2024
Unaudited
|
2023
Unaudited
|
2023
Audited
|
|
|
|
|
|
Staff Numbers
|
|
|
|
|
Directors
|
2
|
2
|
3
|
|
Other staff
|
|
21
|
15
|
|
Average Headcount
|
2
|
23
|
18
|
|
|
£000s
|
£000s
|
£000s
|
|
Employment costs (including
Directors)
|
|
|
|
|
Wages and salaries
|
110
|
526
|
986
|
|
Social security costs
|
8
|
57
|
110
|
|
Termination payments
|
|
5
|
69
|
|
Pension costs
|
10
|
71
|
132
|
|
Employment related share-based
payments
|
|
21
|
21
|
|
|
128
|
680
|
1,318
|
9. Provisions
|
|
Dilapidations
|
Warranties
|
TOTAL
|
|
|
£000s
|
£000s
|
£000s
|
|
Balance at 1 January 2024
|
10
|
20
|
30
|
|
Provided for/(reduced) during the
period
|
-
|
-
|
-
|
|
Balance at 30 June 2024
|
10
|
20
|
30
|
10. Commitments
As at 30 June 2024, purchase commitments relating to
purchase orders placed on, and related contractual arrangements and
obligations, with our third-party manufacturers amounted to
£559,800 (31 December 2023: £651,944).
11. Share-based payments.
|
The share-based payments charge
comprises
|
6
months
|
6
months
|
Year
to
|
|
|
to 30
June
|
to 30
June
|
31
December
|
|
|
2024
|
2023
|
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£
|
£
|
£000s
|
|
Directors' fees settled in
shares
|
-
|
-
|
-
|
|
Vesting of share options
|
-
|
-
|
21
|
|
Employment related share-based
payments
|
-
|
-
|
21
|
|
Brokers' fees settled in
shares
|
-
|
-
|
-
|
|
|
-
|
-
|
21
|
There were no Directors' fees settled in shares in
the 6 month period to 30 June 2024.
12. Cash absorbed by operations.
|
|
6
months
|
6
months
|
Year to
31
|
|
|
to 30
June
|
to 30
June
|
December
|
|
|
2024
|
2023
|
2023
|
|
|
Unaudited
|
Unaudited
|
Audited
|
|
|
£000s
|
£000s
|
£000s
|
|
Total comprehensive loss for the
year
|
(536)
|
(1078)
|
(2,597)
|
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
Amortisation of intangible
assets
|
15
|
14
|
27
|
|
Depreciation of right of use
assets
|
-
|
38
|
76
|
|
Depreciation of property, plant and
equipment
|
60
|
95
|
183
|
|
Transfer of property, plant and
equipment to
|
-
|
-
|
-
|
|
cost of goods
|
|
Loss/(Profit) on disposal of right
of use assets
|
-
|
-
|
38
|
|
Decrease/(Increase) in provision for
dilapidation & warranty
|
-
|
33
|
(85)
|
|
|
|
|
|
|
Increase/(Decrease) in provision for
expected
|
-
|
-
|
6
|
|
credit losses
|
|
Share-based payments (inclusive of
fees settled in shares)
|
-
|
-
|
21
|
|
Increase/(Decrease) in inventory
provision
|
|
16
|
|
|
Tax on loss on ordinary
activities
|
-
|
(81)
|
-
|
|
Interest on lease
liability
|
-
|
2
|
2
|
|
Interest received
|
(16)
|
(13)
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
Movements in working capital:
|
|
|
|
|
(Increase)/Decrease in
inventories
|
(162)
|
(25)
|
170
|
|
(Increase)/Decrease in trade and
other receivables
|
(416)
|
146
|
577
|
|
Increase/(Decrease) in trade and
other payables
|
(136)
|
(17)
|
284
|
|
Cash absorbed by operations
|
(1,191)
|
(871)
|
(1,311)
|
13. Related party transactions
There were no related transactions in the six months
ended 30 June 2024, other than the participation of Bob Moore in
the Placing announced on 15 January 2024 in which he subscribed for
9,040,000 shares at 0.06p on the same terms as other investors.
