TIDMGPL
RNS Number : 7299N
Graft Polymer (UK) PLC
27 September 2023
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014, which forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended).
27 September 2023
Graft Polymer (UK) PLC
Graft Polymer announces interim financial results at a time of
strong momentum in new contract and R&D agreement signings,
evidence of innovative and competitive edge
Graft Polymer, (LSE:GPL) the multi-sector specialist chemical
company offering modified and alloyed polymer and bio-polymer
solutions for refiners, compounders and processors, is pleased to
announce its interim results for the period ended 30 June 2023.
Highlights
- Revenue GBP0.24m, down 27% year-on-year as we transitioned to
our expanded bespoke production in Slovenia.
- Operating loss GBP1.0m, up GBP0.26m year-on-year.
- Cash of GBP0.52m as of 30 June 2023.
- Completion of Slovenian production facility in June and
commissioning in July post GBP1.3m capex investment in state of the
art machinery at the Slovenian plant. This has doubled the
Company's production capacity, and enhanced our capabilities in
polymer modification, biological supplements and drug delivery
systems.
- Increase in operating expenses to support expanding marketing
and joint development programmes with new and existing clients.
- Transition period ahead of expanded production facility
startup resulted in revenue decrease in the financial period.
- Strong commercial momentum with contract, manufacturing,
supply, distribution and R&D agreement signings post period
close.
- Ongoing focus on sales for remainder of 2023 and 2024 with a
healthy pipeline and scope for harnessing enlarged operations to
win further and larger customer mandates.
- Expanding distribution and partnerships in new geographic markets.
Commenting on the results, Roby Zomer, Chairman, said: "We are
delighted with the successful commissioning of the expanded
Slovenian plant which paves the way for industrial scale partners
working with us. We have been through a pivotal investment period
and are working hard to deliver the sales potential of the
organisation. The Board is focused on evolving the building blocks
for creating shareholder value and we are pleased with the
confidence our partners continue to show in our innovative
strengths and competitive edge in the polymer market".
Clear strategic focus in high growth, high margin markets
The company continues to focus on two core areas - providing
bespoke polymer modification solutions to the plastic and rubber
processing industries to improve product functionality and
environmental credentials; and providing nutritional supplements
and drug delivery systems through our bio division. We have a
market leading position in polymer modification, thanks to our
pioneering R&D and competitive edge in technology which we are
leveraging in high growth, high margin markets using our industrial
scale polymer modification and drug delivery platforms.
Our growing involvement in projects focused on producing
sustainable, environmentally friendly products is testament to our
commitment to effective ESG and playing an active role in evolving
products to meet ever changing customer requirements.
Progress with drug delivery systems in first half
During the period, we made significant progress with drug
delivery systems as evidenced by MGC Pharma's ArtemiC(TM)
proprietary clinically tested COVID 19 treatment, which uses the
Company's GraftBio(R) divisions drug delivery systems, being listed
as an over-the-counter ('OTC') drug on the US Food and Drug
Administration's National Drug Code Database. This paved the way
for ArtemiC(TM) being sold via US based Pharmacy Benefit Management
networks from April 2023.
Post Period events
Commissioning of Slovenian production site with doubled
capacity
Following the end of the period, we announced the completion and
commissioning of our bespoke production site in Slovenia, doubling
the company's production capacity to 6,000 tonnes / year. This
development leverages the company's IP for bio and pharma
applications to expand the breadth of its product ranges and make
our divisions quicker in responding to customer requirements. As
such, it is a key step towards realising our growth ambitions,
expanding our global footprint and competing with established
peers, through our specialist approach focused on innovation and
building cash generation. Now operational, it cements our position
as a market leading, pioneering operator in both research and
technology commercialisation within the polymer modification,
biological supplement and drug delivery industries.
Strong production and distribution momentum post period with
multiple new contracts signed
Following the completion and commissioning of the expanded
Slovenian facility, the company has also made significant headway
with R&D, manufacturing, supply and distribution agreements
post period. As Graft Polymer's materials are key elements of our
partners' and customers' formulations, our ability to demonstrate
reliable supply capacity is critical to our ability to generate
customer relationships. The commissioning of the expanded facility
has therefore opened up multiple customer agreements.
In early July, we signed a one-year supply and distribution
agreement with Austrian chemicals company Gabriel Chemie, one of
Europe's leading producers of masterbatch, a solid or liquid
additive used for colouring or imparting other properties to
plastics. The agreement is for the companies to cooperate in
research, production and marketing of dispersants for coloured and
black masterbatches, involving polymer powders, porous granules and
liquids with Gabriel Chemie committing to purchase our Graftalloy,
Graftakit, Graftasynt, Graftalen and Graftabond products as well as
further high-value products later in the year. Several projects
based on a number of Graft Polymer products are now under trial
(microbiological tests on a variety of polymers) with the client
and we have recently delivered two further samples for our
recycling project with them.
The Company announced the signing of a distribution agreement
with leading US veterinary products company Inter-Technologies Inc.
in July. This is a major step for sales of our GraftBio products in
the US through Inter-Technologies' activities there and assists us
in developing effective partnerships with market leading
distributors. It is evidence of market appetite for our unique,
patented technologies and gives us a platform to enter the large US
pet supplements market . To date, product samples have been
delivered to our distributor and we are in the process of receiving
initial feedback on them.
In late August we announced the signing of a manufacturing
service agreement with a prominent partner in the Israeli pharma
market, with Graft Polymer acting as a lead contract manufacturing
organization (CMO). Following the agreement, we will provide
manufacturing services from our new Slovenian production facility
to produce the Israeli company's patented haemostatic powder
following a recent, successful pilot scheme. We see this product as
a highly promising wound treatment and surgical support technique
with large and readily addressable markets. We will be leveraging
our R&D in the further development of this product, while
creating a new material revenue stream for GraftBio and offering
the client the benefits of our cost effective, rapid delivery
capabilities. Samples have been released and shipped to our partner
already, with field trials now underway.
At the end of August, the Company signed a supply and
distribution agreement with Empresas Vilher, the Mexican company
specialising in wood plastic composite, plastic recycling, and
high-performance compounds. We had been working with the technical
team from Vilher for several months on a variety of modified
polymer projects which helped crystallise this agreement.
Applications envisaged under the agreement include those in
building and road construction, insulation, windows, and wall and
roof products. We are currently in the final stages of confirming
an additional order for a pallet of mixed products to be used in
intensive industrial trials which will allow us to expand into a
number of different fields.
In early September, we signed a further supply agreement with
Forpet Baltic, a European FMCG packaging company, which specialises
in the production of recycled polyethylene terephthalate. PET is
widely used for water and food containers and there is strong
end-market demand for recycled PET material. Enhanced R&D will
be a key catalyst for this growth and this is another example of
Graft Polymer generating sustainable innovation through R&D and
production partnerships. We have recently shipped the first set of
samples so that lab trials can take place.
Positive outlook thanks to dynamic pipeline, R&D driven
competitive advantage and financial strength
We are confident in the outlook to the end of this year and for
2024, based on the multiple opportunities we are pursuing and the
pipeline of further projects to come. Our ability to operate
effectively is underpinned by our solid financial structure and
focus on cashflow generation. The Company is currently actively
seeking additional funding, both non-dilutive and equity.
We have clear competitive advantage, thanks to our producing the
most sophisticated, unparalleled polymer modifiers in the industry,
our state of the art manufacturing facility in Slovenia, our
proprietary process and patents which create high barriers to
entry, and our ability to deliver a comprehensive range of polymer
solutions. Our specialist R&D focus makes us agile in a
constantly changing market and we operate in tandem with market
leading international partners.
The future for Graft Polymer remains bright and full of
potential. We look forward to providing further updates on our
continued progress and would like to use this opportunity to thank
all the team for their hard work and the continued progress that
has been made since listing.
S
For further information, visit www.graftpolymer.com , follow on
Twitter @PolymerLtd or contact:
Graft Polymer (UK) Plc
Roby Zomer, Non Executive Chairman Via Flagstaff
Yifat Steuer, CFO and Executive Director
Turner Pope Investments Tel:+44 (0) 20 3657 0050
James Pope
Andy Thacker
Flagstaff Strategic and Investor Communications Tel + 44 (0) 207 129 1474
Tim Thompson graftpolymer@flagstaffcomms.com
Mark Edwards
Alison Allfrey
Anna Probert
About Graft Polymer
Graft Polymer is a London Stock Exchange listed company (GPL)
with a cutting-edge, research and development (R&D) and
manufacturing facility based in Slovenia which has already
introduced more than 50 products to the market. The core business
of the Group comprises polymer modification and drug delivery
system developments. The Group has developed a proprietary set of
polymer modification technologies, including using recycled raw
materials and a closed loop system to reduce waste. Graft Polymer's
technology can improve existing products and processing
methodologies by enhancing performance, simplifying manufacturing,
reducing material consumption, widening the choice of feedstocks,
and reducing costs.
Graft Polymer has three divisions: the first division focusses
on polymer modification; the second is GraftBio which develops IP
for Bio/Pharma applications (including a drug delivery system to
support and provide solutions to the market, which had been heavily
impacted by the COVID-19 pandemic); and the third is the Group's
food supplement division. A significant milestone was reached in
May 2022 when the Slovenian manufacturing facility was granted a
Hazard Analysis and Critical Control Point (HACCP) Certificate. The
HACCP Certificate allows it to enter the lucrative
Business-to-Consumer market and commercialise its IP for bio/pharma
applications, developing active pharmaceutical ingredients and drug
delivery platforms for use in the food supplement market, thereby
introducing a further revenue stream to its business.
Environment, Social and Governance is at the forefront of the
Group's strategy and the facility in Slovenia has been granted ISO
14001 accreditation in recognition of the environmental management
systems in place to reduce waste. Graft Polymer only uses REACH and
ROHS certificated raw materials instead of toxic raw materials, and
its extensive R&D programme has also developed specialised
recycling polymer additives which increases the strength of
recycled blends and plastic products whilst also reducing plastic
waste by between 40 and 50 per cent.
GRAFT POLYMER (UK) PLC -- CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIODING 30 JUNE 2023 Financial
Unaudited
Six months to Unaudited
Note 30 Jun 2023 Six months to 30 Jun 2022
GBP'000 GBP'000
--------------------------------------------------------------- ------- --------------- ---------------------------
Continuing operations
Revenue 5 240 331
Cost of sales (129) (177)
--------------------------------------------------------------- ------- --------------- ---------------------------
Gross profit 111 154
Other income - 15
Operational costs 6 (80) (155)
Administrative expenses 6 (1,060) (783)
--------------------------------------------------------------- ------- --------------- ---------------------------
Operating loss (1,029) (769)
Depreciation (94) (41)
Finance costs (3) (5)
--------------------------------------------------------------- ------- --------------- ---------------------------
Loss before taxation (1,126) (815)
Income tax - -
--------------------------------------------------------------- ------- --------------- ---------------------------
Loss for the period from continuing operations (1,126) (815)
Total loss for the period attributable to equity holders of
the parent
Other comprehensive income 38 -
--------------------------------------------------------------- ------- --------------- ---------------------------
Total comprehensive loss for the period attributable to
equity holders of the parent (1,088) (815)
=============================================================== ======= =============== ===========================
Loss per share (p) 7 (1.08) (0.79)
=============================================================== ======= =============== ===========================
The notes from an integral part of the Condensed Consolidated
Interim Financial Statements.
GRAFT POLYMER (UK) PLC -- CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023 Financial
Unaudited Audited
30 Jun 2023 Unaudited 30 Jun 2022 31 Dec 2022
Note GBP'000 GBP'000 GBP'000
--------------------------------- -----
Non-current assets
Property, plant and equipment 8 805 324 674
Intangible assets 9 2,068 2,068 2,068
Other non-current assets 13 13 13
Right of use assets 10 47 - 27
Total non-current assets 2,933 2,405 2,782
--------------------------------- -----
Current assets
Cash and cash equivalents 522 3,043 1,640
Trade and other receivables 11 136 347 330
Inventory 114 - 187
--------------------------------- -----
Total current assets 772 3,390 2,157
--------------------------------- ----- ------------- ---------------------- -------------
TOTAL ASSETS 3,705 5,795 4,939
================================= ===== ============= ====================== =============
Non-current liabilities
Lease liability 10 29 27 18
--------------------------------- ----- ------------- ---------------------- -------------
Total non-current liabilities 29 27 18
--------------------------------- ----- ------------- ---------------------- -------------
Current liabilities
Trade and other payables 12 197 178 322
Deferred Income - - 41
Lease liability 10 13 - 4
--------------------------------- ----- ------------- ---------------------- -------------
Total current liabilities 210 178 367
--------------------------------- ----- ------------- ---------------------- -------------
Total liabilities 239 205 385
--------------------------------- ----- ------------- ---------------------- -------------
NET ASSETS 3,466 5,590 4,554
================================= ===== ============= ====================== =============
Equity
Issued share capital 13 41 41 41
Share premium 13 7,001 7,001 7,001
Share based payments reserve 858 - 858
Capital reduction reserve 2,500 2,500 2,500
Foreign exchange reserve 37 3 (1)
Share based payments reserve 858
Accumulated losses (6,971) (3,955) (5,845)
--------------------------------- ----- ------------- ---------------------- -------------
TOTAL EQUITY 3,466 5,590 4,554
================================= ===== ============= ====================== =============
The notes from an integral part of the Condensed Consolidated
Interim Financial Statements.
The Condensed Consolidated Interim Financial Statements were
approved and authorised by the Board of Directors on 26 September
2023
Yifat Steuer
Chief Financial Officer
GRAFT POLYMER (UK) PLC -- CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIODING 30 JUNE 2023
Unaudited
Six months to Unaudited
30 Jun 2023 Six months to 30 Jun 2022
GBP'000 GBP'000
-------------------------------------------------------- ---------------- -----------------------------
Cash flow from operating activities
Operating loss - continuing operations (1,126) (815)
Adjustments for:
Depreciation - property, plant & equipment 90 41
Depreciation - right of use asset 4 -
Finance charge 3 1
Foreign exchange movements 39 3
Changes in working capital:
Decrease / (Increase) in trade and other receivables 175 (205)
(Decrease) in trade and other payables (151) (1,182)
Movement in inventories 73 -
Net cash outflow from operating activities (893) (2,172)
-------------------------------------------------------- ---------------- ---------------------------
Cash flow from investing activities
Purchase of property, plant and equipment (237) (47)
Net cash outflow from investing activities (237) (47)
-------------------------------------------------------- ---------------- ---------------------------
Cash flows from financing activities
Net proceeds from issue of shares - 4,660
Net cash inflow from financing activities - 4,660
-------------------------------------------------------- ---------------- ---------------------------
Net (decrease)/increase in cash and cash equivalents (1,130) 2,441
Cash and cash equivalents at beginning of period 1,640 598
Foreign exchange impact on cash 12 4
Cash and cash equivalents at the end of the period 522 3,043
-------------------------------------------------------- ---------------- ---------------------------
GRAFT POLYMER (UK) PLC -- CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2023 Financial
Foreign
Share Shares to Share SBP exchange Retained Total
capital be issued premium CR reserve reserve Reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
Balance at 31
May 2021 7 - 942 2,500 - (16) (2,186) 1,247
--------------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
Loss for
period - - - - - - (954) (954)
Other
comprehensive
income - - - - - 19 - 19
Total
comprehensive
loss for
period - - - - - 19 (954) (935)
Transactions
with owners in
own capacity
Shares to be
issued - 500 - - - - - 500
Transactions
with owners
in own
capacity - 500 - - - - - 500
--------------- -----------
Balance at 31
December 2021 7 500 942 2,500 - 3 (3,140) 812
=============== =========== =========== =========== =========== =========== ========== =========== ===========
Loss for
period - - - - - - (2,705) (2,705)
Other
comprehensive
income - - - - - (4) - (4)
Total
comprehensive
loss for year - - - - - (4) (2,705) (2,709)
Transactions
with owners in
own capacity
Ordinary
Shares issued
in the period 34 (500) 6,399 - - - - 5,933
Advisor
warrants
issued - - - - 143 - - 143
Employee
options
issued - - - - 715 - - 715
Share Issue
Costs - - (340) - - - - (340)
Transactions
with owners
in own
capacity 34 (500) 6,059 - 858 - - 6,451
--------------- ----------- ----------- ----------- ----------- -----------
Balance at 31
December 2022 41 - 7,001 2,500 858 (1) (5,845) 4,554
----------- ----------- ---------- -----------
Loss for
period - - - - - - (1,126) (1,126)
Other
comprehensive
income - - - - - 38 - 38
Total
comprehensive
loss for year - - - - - 38 (1,126) (1,088)
Transactions
with owners in
own capacity
Transactions
with owners in
own capacity - - - - - - - -
--------------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
Balance at 30
June 2023 41 - 7,001 2,500 858 37 (6,971) 3,466
--------------- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
GRAFT POLYMER (UK) PLC -- CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIODING 30 JUNE 2023
Financial
1. GENERAL INFORMATION
Graft Polymer (UK) Plc ("the Company" or "GPUK") was
incorporated in England and Wales as a limited company on 18 May
2017 as Graft Polymer (UK) Limited and was re-registered as a
public limited company on 1 July 2021. The Company is domiciled in
England and Wales with its registered office at Eccleston Yards, 25
Eccleston Place, London, SW1W 9NF. The Company's registered number
is 10776788.
The Group successfully completed an IPO and admission to the
standard segment of the London Stock Exchange on 6 January
2022.
The principal activities of the Company and all of its
subsidiaries (collectively referred to as "the Group") are the
research, development and polymer modification technologies and
polymer modification techniques.
The condensed consolidated interim financial statements were
approved for issue by the Board of Directors on 26 September
2023.
2. ACCOUNTING POLICIES
IAS 8 requires that management shall use its judgement in
developing and applying accounting policies that result in
information which is relevant to the economic decision-making needs
of users, that are reliable, free from bias, prudent, complete and
represent faithfully the financial position, financial performance
and cash flows of the entity.
3. BASIS OF PREPARATION
The condensed consolidated interim financial statements
("financial statements") of Graft Polymer (UK) Plc for the
six-month period ended 30 June 2023 have been prepared in
accordance with Accounting Standard IAS 34 Interim Financial
Reporting.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
period ended 31 December 2022, which was prepared in accordance
with UK adopted International Accounting Standards (IFRS) and the
Companies Act 2006, and any public announcements made by Graft
Polymer (UK) plc during the interim reporting period and since.
These financial statements do not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 December 2022
prepared under IFRS have been filed with the Registrar of
Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under Section 498(2) of
the Companies Act 2006.
The functional currency for each entity in the Group is
determined as the currency of the primary economic environment in
which it operates. The functional currency of the Company's
subsidiary is the Euro. The presentational currency of the Group is
Pounds Sterling as this is the functional currency of the parent
entity and also the currency in which equity fundraising has been
facilitated. Amounts have been rounded to the nearest GBP'000.
The condensed consolidated interim financial statements have not
been audited.
The business is not considered to be seasonal in nature.
3.1 GOING CONCERN
These financial statements have been prepared on the going
concern basis, which contemplates the continuity of normal business
activities and the realisation of assets and settlement of
liabilities in the normal course of business.
As disclosed in the financial statements, the consolidated
entity incurred a net loss before taxation for the period ended 30
June 2023 from continuing operations of GBP1,126k (30 June 2022:
GBP815k) and had net cash outflows of GBP1,130k (30 June 2022:
GBP2,441k inflow) for the period ended 30 June 2023. As at that
date, the consolidated entity had net current assets of GBP575k (30
June 2022: GBP3,212k) and had cash and cash equivalents equal to
GBP522k (30 June 2022: GBP3,043k).
These factors indicate material uncertainty which may cast
significant doubt as to whether the Group will continue as a going
concern. The Directors are of the view that there are reasonable
grounds to believe that the Group will continue as a going concern
after consideration of the following factors:
- The Directors have confirmed that they are willing to forego
fees in order to support the cash balance of the Group and will
continue to monitor the net working capital position on a monthly
basis;
- The Group may reasonably expect to maintain continued support
from shareholders and other financiers that have supported the
Group's previous capital raising to assist with meeting future
funding needs
Accordingly, the Directors believe that the Group will be able
to continue as a going concern and that it is appropriate to adopt
the going concern basis in the preparation of the financial
report.
However, the Directors recognise that if further funding is
required and is not subsequently secured, the outcome of which is
uncertain until such funding is secured, there is a material
uncertainty as to whether the going concern basis of accounting is
appropriate.
3.2 PRINCIPAL RISK AND UNCERTAINTIES
The principal risks and uncertainties of the Group have not
changed materially since the publication of the Group's last annual
report for the period ending 31 December 2022. On this basis the
Directors have not prepared a separate risk analysis in these
financial statements.
3.3 CRITICAL ACCOUNTING ESTIMATES
The preparation of these financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, income and expenses,
and disclosure of contingent assets and liabilities at the end of
the reporting period.
In preparing these financial statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the financial statements for the
period ended 31 December 2022, with the nature and amounts of such
estimates have not changed significantly during the interim
period.
4. SEGEMENT REPORTING
The following information is given about the Group's reportable
segments:
The Chief Operating Decision Maker is the Board of Directors.
The Board reviews the Group's internal reporting in order to assess
performance of the Group. Management has determined the operating
segments based on the reports reviewed by the Board.
The Board considers that during the six month period ended 30
June 2023 the Group operated in two segments being corporate
function in the United Kingdom and polymer development and
production in Slovenia.
Contributions per segment to operating loss from continued
operations are detailed below:
United Kingdom Slovenia Total
GBP'000 GBP'000 GBP'000
----------------------------------------------------------------- --------------- --------- --------
Revenue - 240 240
Cost of sales - (157) (157)
--------------- --------- --------
Gross profit - 83 83
Operational costs - (52) (52)
Administrative expenses (772) (288) (1,060)
Depreciation - (94) (94)
Finance costs - (3) (3)
Operating loss from continued operations per reportable segment (772) (354) (1,126)
Reportable segment assets 2,635 1,070 3,705
Reportable segment liabilities (117) (122) (239)
--------------- --------- --------
Total 2,518 948 3,466
=============== ========= ========
5. REVENUE
Period Period
to 30 Jun to 30 Jun
2023 GBP'000 2022 GBP'000
---------------- -------------- --------------
Sales revenue 240 331
--------------
240 331
-------------- --------------
6. OPERATING LOSS
Operating loss from continued operations is stated after
(charging):
Period to Period to
30 Jun 2023 30 Jun 2022
GBP'000 GBP'000
------------------------------------ ------------- -------------
Operational costs (80) (155)
Director and employee costs (620) (324)
Professional and consulting fees (163) (277)
Travel expenses (2) (2)
Corporate and administrative costs (150) (145)
Other expenses (31) (26)
Foreign exchange (94) (9)
------------- -------------
(1,140) (938)
------------- -------------
7. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is
calculated by dividing the profit or loss for the period by the
weighted average number of ordinary shares in issue during the
period.
Unaudited Period to 30 Jun 2023 Unaudited Period to 30 Jun 2022
----------------------------------------------- -------------------------------- --------------------------------
Loss for the period from continuing
operations - GBP '000s (1,126) (815)
Weighted number of ordinary shares in issue 104,097,229 102,967,002
------------------------------------------------ -------------------------------- --------------------------------
Basic and diluted earnings per share from
continuing operations - pence (1.08) (0.79)
------------------------------------------------ -------------------------------- --------------------------------
There is no difference between the diluted loss per share and
the basic loss per share presented. Share options and warrants
could potentially dilute basic earnings per share in the future.
These were not included in the calculation and no diluted earnings
per share presented as the Group is loss making and additional
equity instruments are anti-dilutive for the periods presented.
8. PROPERTY, PLANT AND EQUIPMENT
Leasehold Improvements Plant
GBP'000 & Equipment Total
GBP'000 GBP'000
---------------------------------------------- ----------------------- ------------- ---------
Cost
At 1 July 2022 - 537 537
Additions 85 352 437
Exchange impact 4 48 52
----------------------- ------------- ---------
At 31 December 2022 (audited) 89 937 1,026
Additions 13 224 237
Exchange impact (12) (26) (38)
----------------------- ------------- ---------
At 30 June 2023 (unaudited) 90 1,135 1,225
----------------------- ------------- ---------
Depreciation
At 1 July 2022 - (275) (275)
Charge for the year (27) (46) (73)
Exchange impact (2) (2) (4)
----------------------- ------------- ---------
At 31 December 2022 (audited) (29) (323) (352)
Charge for the period (24) (70) (94)
Exchange impact 5 21 26
----------------------- ------------- ---------
At 30 June 2023 (unaudited) (48) (372) (420)
----------------------- ------------- ---------
Net book value at 31 December 2022 (audited) 60 614 674
----------------------- ------------- ---------
Net book value at 30 June 2023 (unaudited) 42 763 805
----------------------- ------------- ---------
9. INTANGIBLE ASSETS
Audited
Unaudited 30 Jun 2022 31 Dec 2022
Unaudited 30 Jun 2023 GBP'000 GBP'000 GBP'000
------------------- ------------------------------ ---------------------- -------------
Opening balance 2,068 2,068 2,068
2,068 2,068 2,068
------------------------------ ---------------------- -------------
At each period, the Directors assess the intangible assets for
any indicators of impairment and have concluded no presence of such
indicators, hence concluded that no impairment charge was necessary
during the year (31 Dec 2022: GBPnil).
10. LEASES
Right of use assets
A reconciliation of the carrying amount of the right of use
assets is as follows:
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
--------------------- ------------ ------------ ------------
Right-of-use assets
Motor vehicles 47 - 27
------------ ------------ ------------
47 - 27
------------ ------------ ------------
Lease liabilities
Current 13 - 4
Non-current 29 - 18
------------ ------------ ------------
42 - 22
------------ ------------ ------------
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
----------------- ------------ ------------ ------------
Opening balance 27 - -
Additions 24 - 32
Depreciation (4) - (5)
47 - 27
------------ ------------ ------------
Lease liabilities
A reconciliation of the carrying amount of the lease liabilities
is as follows:
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
----------------- ------------ ------------ ------------
Opening balance 22 - -
Additions 26 - 28
Finance charge 3 - 2
Repayments (9) - (8)
------------ ------------ ------------
42 - 22
------------ ------------ ------------
11. TRADE AND OTHER RECEIVABLES
Unaudited 30 Jun 2023 Unaudited 30 Jun 2022 Audited 31 Dec 2022
GBP'000 GBP'000 GBP'000
----------------------------------- ---------------------- ---------------------- --------------------
Trade receivables 84 25 35
Prepayments - 152 232
Other taxes and social security 32 63 55
Other receivables 20 107 8
136 347 330
---------------------- ---------------------- --------------------
12. TRADE AND OTHER PAYABLES
Unaudited 30 Jun 2023 Unaudited 30 Jun 2022 Audited 31 Dec 2022
GBP'000 GBP'000 GBP'000
------------------ ---------------------- ---------------------- --------------------
Trade payables 111 67 185
Accruals 66 72 114
Other payables 20 39 23
197 178 322
---------------------- ---------------------- --------------------
13. SHARE CAPITAL
Unaudited Unaudited Audited
30 Jun 2023 30 Jun 2022 30 Jun 2022
--------------------------- ------------- ------------- -------------
Number of shares 104,097,299 104,097,299 104,097,299
Nominal value (GBP'000) 41 41 41
------------- ------------- -------------
Issued and fully paid ordinary shares with a nominal value of
GBP0.001 (2022: GBP0.001)
Change in issued Share Capital and Share Premium:
Number of shares Share capital Share premium Total
Ordinary shares GBP'000 GBP'000 GBP'000
Balance at 31 December 2022 104,097,229 41 7,001 7,042
----------------- -------------- -------------- --------
Balance at 30 June 2023 104,097,229 41 7,001 7,042
----------------- -------------- -------------- --------
14. EVENTS SUBSEQUENT TO PERIOD
Research and Development agreement entered into with Gabriel
Chemie
On 6th July 2023 the Company entered into an R&D and supply
agreement with Gabriel Chemie for a one year period. The two
companies will cooperate in research, production and marketing of
dispersants for coloured and black masterbatches. This will involve
polymer powders, porous granules and liquids.
Gabriel Chemie, based in Austria with subsidiaries in Germany,
UK, Hungary, Czech Republic, Poland, Italy, Spain and Russia, is
well established with over 600 employees and historical annual
revenues above EUR100m. They are one of Europe's leading producers
of masterbatch which is a solid or liquid additive used for
colouring plastics or imparting other properties. It gives the
colourless raw polymer vibrant colours, effects and functional
additives.
Cornerstone distribution agreement announced with leading US pet
product distributor Inter-Technologies
On 26th July 2023 the Company entered into a distribution
agreement with leading US veterinary products company
Inter-Technologies Inc. The agreement is a major step forward in
expanding the penetration of the Company's GraftBio products into
the Veterinary Food Supplements market in the USA, through
Inter-Technologies' five operating subsidiaries in that market.
Other than as disclosed in these financial statements, there
have been no further events subsequent to period end.
Research and Development and Supply Agreement with FORPET
BALTIC
Graft and European FMCG packaging company, FORPET BALTIC, SIA
('FORPET'), will cooperate in the research and production of
Recycled PET, a sustainable and environmentally friendly form of
Polyethylene Terephthalate (a polyester widely used in the
production of water bottles and food containers) and other
sustainable packaging solutions. Once joint R&D is complete
Graft will supply FORPET with the new product for manufacture.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFEEAIIRFIV
(END) Dow Jones Newswires
September 27, 2023 02:00 ET (06:00 GMT)
Graft Polymer (uk) (LSE:GPL)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Graft Polymer (uk) (LSE:GPL)
Gráfica de Acción Histórica
De May 2023 a May 2024
