This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.  The directors take responsibility for this announcement.

31 December 2020

SulNOx Group Plc (the "Company" or "SulNOx")

Financial Results for the Six Months to 30 September 2020

(Aquis Stock Exchange: SNOX)

The board of the directors of the Company (the "Board") is pleased to announce its financial results for the six months to 30 September 2020.  A copy of these results has been published on the Company's website.

Chairman's Statement

SulNOx Group (the "Group"), the hydrocarbon fuel emulsification specialist, has pleasure in presenting shareholders with its interim results. These results have been badly affected by the worldwide COVID-19 pandemic that has damaged businesses across the world. Although sales progress has been delayed by this tragedy, in reality, we have been able to progress our world-class proprietary technology during the period of lockdown.

When reviewing a business such as ours it is easy to fall into the trap of focussing on a single item such as product sales, which is very important, and will always be a key part of our story. I say this because three things have occurred in the recent months that will also have significant importance to the value of our shares. Let us review each of them.

Bacterial and fungal damage to fuel due to "free water" is problem is often referred to as "the Diesel Bug". Eliminox (our first UK distributor), working alongside the WP Group, have undertaken tests throughout this accounting period and have proven beyond doubt that the SulNOx technology removes the free water and thus significantly eliminates bacterial and fungal problems. This is important because the Diesel Bug is a global issue in diesel storage. So, whilst not generating immediate revenues, our technology, which is available right now, can address a worldwide issue. This is an important message for the shareholders to appreciate.

It has always been the strategy of the company to sub-contract the manufacturing of our products to a global chemical business of high quality. Our original licensing contract with our global chemical manufacturer ended on 31st August 2020 and we were delighted to announce that this arrangement had now been extended for a further three years. Everyone at the SulNOx Group is aware that developing and selling a new unique technology to a suspicious marketplace is difficult and we are genuinely grateful to our colleagues at our global chemical manufacturer for their patience and we look forward to working closely with them in the years ahead.

Sometimes an event of great importance occurs which was not in fact planned but the results of which have the ability to dramatically progress our story. Our UK distributor Eliminox continues to sell product to a haulage company named Besblock, who has used it on their fleet of 27 Euro 6 Skania and Volvo HGV trucks for a seven-month period so far.  This company uses 100,000 litres of fuel a month.  The results were startling and showed that the fuel gave more miles per gallon (with a fuel saving of up to 8%), diesel filters had to be changed less frequently and the PM monitor (Particulate Matter - Smoke & Soot) stopped lighting up for longer periods. This is the first of many businesses to be sold to, others being in the agriculture and contractor sectors. Besblock have adopted the SulNOx Technology on their whole fleet and are happy to give testimonials to other operators. Shareholders should realise that this is important as we have the product to reduce carbon emissions whilst improving engine performance and reducing vehicle maintenance.

The message is clear - the sales during lockdown have been small but the progress of your Company has been large.

In May, it was clear that COVID-19 was going to stop us travelling and meeting clients face to face and thus slow the progress of sales, so it was agreed that the company should raise some money as an act of financial prudence. This was handled by Stephen Bamford, our former Chairman, who gathered support from our existing shareholders. Following this successful fund raising, Mr Bamford informed the Board that having reached 70 and after 50 years in the City, that he intended to retire from corporate life. The then Board wished him well.

It should be clear to everyone that the "Path to Net Zero emissions by 2050" is a political aspiration and all businesses must, and will need to work very hard, if this can be achieved at all. We at the SulNOx Group have answers that will create large reductions in toxic emissions and our products are available today. In the very near future, all of us at the Company believe that this will become understood and our product sales will accelerate markedly. Our unique selling proposition is that using our products will actually save customers money, whilst helping them reach their environmental emission reduction targets. Once appreciated that will become compelling. I am excited to be part of the new Board and how their collective experience will shape the company going forward. 

Professor Anthony Granger

Chairman.

Enquiries

The directors take responsibility for this announcement.