SulNOx Group PLC - Half-year Report
RNS Number : 9893W
SulNOx Group PLC
30 December 2021
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

30 December 2021  

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

Financial Results for the Six Months to 30 September 2021

 

 

(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 2021. A copy of these results has been published on the Company's website.

 

 

Chairman's Statement

 

At a time when global markets are faced with record high fuel prices, together with leading government commitment to net zero emissions at the recent COP26, and with citizens more aware than ever of their own carbon footprint, the SulNOx products have never been more relevant with their capacity to immediately reduce emissions in all liquid hydrocarbon fuels and provide higher efficiency in fuel consumption. With this imperative call to cut emissions, the International Energy Agency (IEA) released its Energy Efficiency and Global Fuel Economy Initiative (GFEI) reports in November, stating that the world "requires a rapid acceleration in the fuel economy of vehicles", SulNOx is now in a prime position to do just that.

 

We are pleased to report that the financial results for the six month period ended 30 September 2021 are as initially forecasted, reflecting the investments that we have made to drive future revenue growth.

 

A loss of £724,121 (2020: loss of £378,102) is reported for the period, which represents a loss per share of 0.83pence (2020: loss per share 0.44pence). Within the period, the £2.59m raise of new capital has provided us with the ability to invest to grow, and to allow SulNOx to work towards realising its potential, which contributed to the increased loss in comparison to the previous period. As such, this new capital has allowed us to invest in the following key areas:

 

•              Patents - applications for patents have been filed in over 70 countries; and new products and uses of existing products have been developed

•              Leadership - hiring of a Chief Financial Officer, Chief Brand Officer, and Head of Science & Technology, along with an additional Non-Executive Director;

•              Brand Awareness - accelerating the brand recognition via a retained Public Relations firm, Social Media Agency, and developing our e-commerce;

•              Sales - investment in significant trials in focussed industry sectors (shipping, haulage, buses and other fleets), by providing product and relevant professional fees, along with investment in critical testing equipment.

 

Following on from our European certifications from Bureau Veritas announced in February 2021, Bureau Veritas in the US has certified that both US automotive gasoline / petrol and US diesel fuel comply with the American Society for Testing and Materials (ASTM) specifications when the Company's SulnoxEco™ Fuel Conditioner is added at the recommended levels. This is a watershed moment for SulNOx given the size of the marketplace and, when coupled with the recent consulting arrangement with National Strategies (NSI), it opens up significant opportunities across the USA, Canada and Mexico. There are further plans in motion to gain additional certifications in key markets in the coming months.

 

With increasing brand awareness through publications, we have attracted additional enquiries and individual sales. In order to facilitate new demand, we have been investing in our e-commerce capability with an online shop on our website (sulnoxgroup.com/shop), and also released the product on Amazon's sales platform. With the complexities of listing, and the specialist knowledge required to drive a successful sales campaign on Amazon, we have engaged a specialist agency, which we expect to go live in January 2022.

 

Since the trading release of November 8th, there has been continued optimism and success securing c10 new corporate evaluations, expanding existing trials following initial successes, and c60 additional potential customers added to the sales pipeline. Master distributor A&S International Ltd. has secured an order from a Greek distributor with several others under discussion in Germany and the USA following successful trials. We remain highly confident that we will see other leads convert into revenue in 2022 to compliment the high margin, short sales cycles from retail clients.

 

Radu Florescu

Chairman.

 

 

Enquiries:

 

SulNOx Group Plc

Steven Cowin, Chief Financial Officer

steven.cowin@sulnoxgroupplc.com

 

AQSE Corporate Adviser:

Allenby Capital Limited

Nick Harriss / John Depasquale

020 3328 5656

The directors take responsibility for this announcement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SulNOx Group PLC








Consolidated Statement of Comprehensive income for the 6 months ended 30 September 2021






Unaudited

Audited

Unaudited


6 months to

year ended

6 months to


30-Sep-21

31-Mar-21

30-Sep-20


£

£

£





Revenue

              24,486

              17,896

                         -





Cost of sales

            (24,889)

            (12,382)

              (1,422)





Gross profit/(loss)

                  (403)

                5,514

              (1,422)





Distribution costs

                         -

                         -

                         -

Administrative expenses

          (723,718)

          (861,217)

          (376,680)





Operating profit/(loss)

          (724,121)

          (855,703)

          (378,102)





Loss before taxation

          (724,121)

          (855,703)

          (378,102)





Tax on Loss

                         -

              32,462

                         -





Loss for the financial period and total comprehensive income

          (724,121)

          (823,241)

          (378,102)









Earnings per share (pence)

                 (0.83)

                 (0.96)

                 (0.44)

 

 

 

 

 

 

 

 

 

 

SulNOx Group PLC







Consolidated Statement of Financial Position as at 30 September 2021






Unaudited

Audited

Unaudited


6 months to

year ended

6 months to


30-Sep-21

31-Mar-21

30-Sep-20


£

£

£

Non-current assets



Intangible assets

       8,080,061

          8,280,334

               8,466,970

Property, plant and equipment

               7,035

                  3,528

                       4,116


       8,087,096

          8,283,862

               8,471,086

Current assets




Inventory

           101,211

              119,501

                  111,438

Debtors

             87,156

                36,332

                     52,832

Cash at bank and in hand

       1,889,399

                42,271

                  117,006


       2,077,766

              198,104

                  281,276





Creditors: amounts falling due within one year

           151,185

              271,154

                 (370,544)





Net current liabilities

       1,926,581

              (73,050)

                   (89,268)

Total assets less current liabilities

     10,013,677

          8,210,812

               8,381,818





Net assets

     10,013,677

          8,210,812

               8,381,818





Capital and reserves



Called up share capital

       1,882,657

          1,710,057

               1,707,657

Share premium account

     13,322,916

        11,049,435

             10,942,815

Share based compensation reserve

           388,344

              307,439

                  307,439

Profit and loss account

      (5,580,240)

         (4,856,119)

             (4,576,093)

Shareholders' funds

     10,013,677

          8,210,812

               8,381,818

 

 

 

SulNOx Group PLC











Consolidated Statement of Changes in Equity for the 6 months ended 30 September 2021










Share




Called

Share

Based




Up Share

Premium

Compensation

Retained



Capital

Account

Reserve

Earnings

Total


£

£

£

£

£







Balance at 1 April 2020

    1,695,782

      10,781,690

              307,439

      (4,197,991)

        8,586,920

 

Loss of total comprehensive income for the period

                     -

                         -

                            -

          (378,102)

          (378,102)

Issue of share capital

          11,875

           161,125

                            -

                         -

           173,000

Balance at 30 September 2020

    1,707,657

      10,942,815

              307,439

      (4,576,093)

        8,381,818

 

Loss of total comprehensive income for the period

                     -

                         -

                            -

          (280,026)

          (280,026)

Issue of share capital

            2,400

           106,620

                            -

                         -

           109,020

Balance at 31 March 2021

    1,710,057

      11,049,435

              307,439

      (4,856,119)

        8,210,812

 

Loss of total comprehensive income for the period

                     -

                         -

                            -

          (724,121)

          (724,121)

Issue of share capital

        172,600

        2,273,481

                            -

                         -

        2,446,081

Movement on reserve

                     -

                         -

                80,905

                         -

              80,905

Balance at 30 September 2021

    1,882,657

      13,322,916

              388,344

      (5,580,240)

      10,013,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Cash Flows for the 6 months ended 30 September 2021







Unaudited

Audited

Unaudited


6 months to

year ended

6 months to


30-Sep-21

31-Mar-21

30-Sep-20


£

£

£

Cash flows from operating activities




Loss for the year after tax

                (724,121)

                (823,241)

                (378,102)

Adjustments for:




Taxation charged

                                -

                   (32,462)

                                -

Amortisation and impairment of intangible assets

                  200,273

                  400,546

                  213,910

Depreciation and impairment of property, plant and equip

                          613

                       1,176

                          588

Tax refunded

                                -

                    42,219

                                -

Share based equity payment

                    80,905

                                -

                                -

Movement in working Capital




Purchase of property, plant and equipment

                     (4,120)

                                -

                                -

Decrease/(increase) in inventories

                    18,290

                     (8,063)

                                -

(Decrease)/increase in trade and other receivables

                   (50,824)

                    15,270

                   (31,712)

(Decrease)/increase in trade and other payables

                (119,969)

                  122,072

                    51,588

Cash generated from operations

                (598,952)

                (282,483)

                (143,728)

Net cash from operating activities

                (598,952)

                (282,483)

                (143,728)

Cash flows from financing activities




Proceeds from issue of shares

               2,589,000

                  287,600

                  173,000

Share issue costs

                (142,920)

                     (5,580)

                                -

Repayment of borrowings

                                -

                   (45,000)

                                -

Net cash from financing activities

               2,446,080

                  237,020

                  173,000

Net increase in cash and cash equivalents

               1,847,128

                   (45,463)

                    29,272

Cash and cash equivalents at beginning of year

                    42,271

                    87,734

                    87,734

Cash and cash equivalents at end of year

               1,889,399

                    42,271

                  117,006

 

 

SulNOx Group Plc

 

Notes to the Interim Financial Statements

 

1.     General Information

 

SulNOX Group Plc is a public limited company ("The Company") incorporated in England & Wales (registration

number 08449586). The Company is domiciled in the United Kingdom and its registered office is 10 Orange

Street, London WC2H 7DQ. The Company's ordinary shares are traded on the AQSE Growth Market ("AQSE").

(formerly NEX). Copies of the interim report are available from the Company's website www.sulnoxgroup.com.

Further copies of the Interim Report and Accounts may be obtained from the address above.

 

The Company's principal activity is the procurement of orders for customers wishing to use two fuel emulsifier

products previously developed by the group and now owned under licence to Nouryon BV.

 

2.     Basis of Preparation

 

The interim financial statements of the Company and its subsidiaries for the six months ended 30 September

2021, which are unaudited, have been prepared in accordance with International Financial Reporting Standards

("IFRS").

 

The financial information contained in the interim report does not constitute statutory accounts as defined in

Section 435 of the Companies Act 2006. The financial information for the full preceding statutory reporting period

is based on the statutory accounts for the year ended 31 March 2021. Those accounts, upon which the auditors,

Jeffreys Henry LLP, issued a report which was unqualified, have been delivered to the Registrar of Companies.

 

As permitted, this interim report has been prepared in accordance with the AQSE Growth Market Rules for

Issuers and not in accordance with IAS 34 "Interim Financial Reporting" therefore it is not fully compliant with

IFRS.

 

The interim financial statements are presented in sterling.

 

3.     Loss per share

 

Basic loss per share is 0.83p. The basic loss per ordinary share is calculated by dividing the loss of £724,121 by

87,205,199, the weighted average number of shares in issue during this period.

 

The loss attributable to equity holders (holders of ordinary shares) of the Company for calculating the fully diluted

loss per share is identical to that used for calculating the loss per share. The exercise of share options would

have the effect of reducing the loss per share and is therefore anti-dilutive.

 

 

 

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