TIDMLIFS
RNS Number : 5755N
LifeSafe Holdings PLC
26 September 2023
For immediate release 26 September 2023
LifeSafe Holdings plc
('LifeSafe', the 'Group' or the 'Company')
Interim Results for the six months ended 30 June 2023
Strong revenue growth and first industrial agreement achieves a
significant strategic milestone
LifeSafe (AIM:LIFS), a fire safety technology business with
innovative fire extinguishing fluids and fire safety products,
reports its unaudited Interim Results for the six months ended 30
June 2023 ('H1 2023' or 'the Period').
Financial highlights:
-- Revenue more than doubled to GBP2.9 million (H1 2022: GBP1.3 million),
already 72% of FY 2022 revenue and ahead of the Board's expectations
-- Gross profit of GBP1.7 million at 57.8% margin (H1 2022: GBP0.7
million at 55.5% margin)
-- Underlying loss before interest, tax, depreciation and amortisation
(1) ('underlying LBITDA') of GBP760,000 (H1 2022: underlying LBITDA
of GBP681,000)
-- Capitalised product development spend of GBP161,000 (H1 2022: GBP184,000)
-- Cash and cash equivalents at 30 June 2023 of GBP24,000 (30 June
2022: GBP22,000); GBP1.21 million subsequently raised through the
Company's placing, share subscription and retail offer in August
2023
-- Net debt at 30 June 2023 of GBP440,000 (30 June 2022: net debt of
GBP7,000)
Operational highlights:
-- Introduction of Lithium Thermal Runaway Fluid ('TRF') in January
2023 at Intersec, the world's leading event for emergency services,
security and safety
-- Launched in the UK in April 2023 and in the US in July 2023 the
StaySafe All-in-1 fire extinguisher, specifically designed to tackle
ten different types of fire, replacing the successful StaySafe 5-in-1
fire extinguisher
Post-period highlights:
-- First industrial partnership with Wormald Fire & Security, Australia's
biggest fire protection and safety business
-- StaySafe All-in-1 launched in Screwfix 850 store chain in the UK
and online in September 2023
-- Appointment to QBE Insurance Group's Solutions Panel in September
2023 as best-in-class supplier of choice to their global client
network
-- On track to become EBITDA profitable on a monthly basis during Q4
2023
(1) Underlying LBITDA represents loss for the period before
finance expense, tax, depreciation and amortisation, and
non-underlying items.
Commenting on the Interim Results, Dominic Berger, Chairman of
LifeSafe, said:
"I am pleased to announce another positive set of financial
results that reflect the continued growth and development of our
business, driven by our dedicated team. Having listed on AIM just
over 12 months ago, we have consistently outperformed our financial
and strategic targets, all whilst ensuring that our potentially
life-saving fire safety solutions are made increasingly available
to customers globally. Our IPO occurred in the early stages of our
growth and understanding of the market. It is safe to say we know
more now than we did then, but nonetheless we have and will
continue to learn and deliver on our journey.
"I am also delighted that we announced our first major
partnership in the development of our industrial strategy with
Wormald in Australia. This milestone is a long way ahead of our
expectations even though we have been working and testing with
Wormald for over 18 months. We are excited about how the
partnership and endorsement of Wormald will now open a huge
opportunity in the bulk supply of our fluids through similar
partnerships globally.
"My thanks extend to the whole team at LifeSafe and the
continued support of our shareholders, both new and old. We remain
on course to deliver on our stated goals where every home should
have a StaySafe and of being a global disruptor and leader in fire
safety fluids."
Investor presentation
An in-person meeting for sell-side analysts will be held at
9.30am today at the offices of FTI Consulting, 200 Aldersgate,
Aldersgate Street, London EC1A 4HD. Please contact FTI Consulting
via LifeSafe@fticonsulting.com if you wish to join the meeting.
The Company will also be hosting an online presentation for
retail investors to discuss the announcement on 27 September 2023
at 5.00pm. Please email LifeSafe@fticonsulting.com to register your
interest.
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
The person responsible for arranging the release of this
announcement on behalf of the Company is Mike Stilwell, Chief
Financial Officer of the Company.
For further enquiries:
LifeSafe Holdings plc Via FTI Consulting
Dominic Berger, Chairman info@lifesafet echnologies .com
Neil Smith, Chief Executive Officer
Mike Stilwell, Chief Financial
Officer
WH Ireland Limited (Nominated Tel: +44 (0) 20 7220 1666
Adviser & Broker)
Chris Fielding
Darshan Patel
Isaac Hooper
FTI Consulting (Financial Communications) Tel: +44 (0) 20 3727 1000
Tom Hufton LifeSafe@fticonsulting.com
Harriet Jackson
Liam Gerrard
Notes to Editors
LifeSafe is a fire safety technology business that develops
eco-friendly, novel and innovative fire extinguishing fluids and
life-saving fire safety products. LifeSafe has developed a market
disrupting range of eco-friendly fire safety protection products; a
new patent-pending Thermal Runaway Fluid to combat lithium battery
fires by permanently extinguishing and preventing re-ignition, and
the StaySafe All-in-1, a handheld eco-friendly and fully recyclable
extinguisher which is verified to extinguish ten different types of
fire and the number one selling fire extinguisher on Amazon UK. L
ifeSafe is successfully creating new markets for the Group in fire
safety through its innovative technologies, products, digital
marketing and multi-channel sales; and is continuing to develop new
fluid derivations for applications in various industrial market
sectors.
LifeSafe was admitted to trading on AIM in July 2022 with the
ticker LIFS.
For further information please visit:
https://www.lifesafeholdingsplc.com .
LinkedIn:
https://www.linkedin.com/company/lifesafe-technologies
Twitter: https://twitter.com/LifesafeT
Chairman's Statement
Business Review
I am delighted to report on the continued strong operational and
strategic progress made by the Group in H1 2023. This progress is
all the more significant considering it is just over a year since
the Group was admitted to AIM and was able to access the funds
required to progress the commercialisation of LifeSafe's core
product containing its proprietary fire extinguishing fluid.
At almost GBP3 million, our revenue for H1 2023 represents 72%
of that achieved in the whole of 2022 and is ahead of the Board's
expectations. The StaySafe All-in-1 remains the number one
best-selling fire extinguisher on Amazon UK.
What is particularly impressive, however, is at the same time as
managing this considerable growth in the consumer channel, the
LifeSafe team developed and launched the new StaySafe All-in-1 in
the UK and US consumer markets and, subsequent to the Period end,
achieved the significant strategic milestones of signing LifeSafe's
first industrial partnership agreement with Wormald Fire &
Security with the Group's new fluorine free lithium thermal runaway
fluid and being appointed to QBE Insurance Group's Solutions
Panel.
The industrial partnership with Wormald represents a key
strategic development which could have only been achieved through
the exceptional progress made in the consumer market and lays the
foundations to access the enhanced margins of bulk fluid supply and
international distribution agreements, which avoid many of the
costs inherent in the direct consumer supply model.
I reaffirm that the Group remains firmly on track in executing
its strategy to build a multi-channel, international fire safety
business capable of delivering significant long-term value for our
shareholders.
Results
LifeSafe's revenue for H1 2023 more than doubled to GBP2.9
million, compared with GBP1.3 million in the same period last year
as the commercialisation of the Company's innovative, market
disrupting eco-friendly fire extinguishing proposition continued
ahead of the Board's expectations. Sales increased both in the UK,
through the introduction of the StaySafe All-in-1 fire
extinguisher, and in the US, with a full six months sales of the
StaySafe 5-in-1 fire extinguisher since its introduction in the US
market during H1 2022.
Gross profit for H1 2023 increased significantly to GBP1.7
million (H1 2022: GBP0.7 million) at a gross margin of 57.8% (H1
2022: 55.5%), in line with the Board's expectations despite the
strengthening of sterling against the US dollar during the Period
compared to the budgeted rate.
Underlying administrative expenses for H1 2023 increased to
GBP2.5 million (H1 2022: GBP1.4 million) as the Group invested in
digital marketing to drive sales with a corresponding increase in
logistics costs, particularly in the US, and invested operationally
in resource to address the increasing demands of supply chain,
customer service and financial management.
The Group made an underlying loss before interest, tax,
depreciation and amortisation(1) ('LBITDA') of GBP760,000 (H1 2022:
GBP681,000) before non-underlying share-based payment charges of
GBP413,000 (H1 2022: non-underlying items of GBP895,000 comprising
IPO costs and share-based payment charges).
Finance expenses of GBP23,000 were recorded in the Period (H1
2022: GBP573,000, of which GBP569,000 related to non-underlying
interest on convertible loan notes which subsequently converted to
equity on Admission to AIM).
The Group made an underlying loss before tax(2) of GBP849,000
(H1 2022: loss of GBP733,000). After charging GBP413,000 for
non-underlying costs in relation to share-based payment charges (H1
2022: total non-underlying charges of GBP1,464,000), the
consolidated loss before tax for the Period was GBP1.3 million (H1
2022: loss of GBP2.2 million).
The basic and diluted earnings per share were (GBP0.06) (H1
2022: (GBP0.14)).
Cash and cash equivalents as at 30 June 2023 were GBP24,000 (H1
2022: GBP22,000). GBP1.21 million was subsequently raised through
the Company's placing, share subscription and retail offer in
August 2023 (described below). Net debt at 30 June 2023 was
GBP440,000 (30 June 2022: net debt of GBP7,000).
Inventory at 30 June 2023 amounted to GBP1.0 million (30 June
2022: GBP0.3 million) as stock was procured in advance of expected
demand to ensure this could be satisfied during the
seasonally-stronger second half of the year, particularly for stock
shipping to the US market. In 2022, 68% of the Company's revenue
was generated in H2 2022, highlighting the importance of
front-loading inventory to maintain product availability. The
inventory balance reduced to GBP0.9 million at 31 August 2023 as
stock began to be worked through.
Trade and other receivables at 30 June 2023 amounted to
GBP436,000 and included GBP154,000 in relation to taxation
subsequently received after the Period end (30 June 2022: GBP3.2
million, of which GBP3.0 million were committed subscriptions to
the Company's placing of shares and Admission to AIM on 6 July
2022).
Trade and other payables at 30 June 2023 amounted to GBP782,000
and included GBP515,000 of trade creditors reflecting stock
delivered in advance of the expected seasonally higher demand in H2
2023 (30 June 2022: GBP1,583,000, including IPO costs of GBP984,000
which were paid subsequently).
Borrowings at 30 June 2023 amounted to GBP464,000 (30 June 2022:
GBP29,000) and included balances of GBP22,000 in relation to a
Coronavirus Bounce Back Loan, GBP142,000 in relation to a supplier
invoice finance facility announced on 31 March 2023 and originally
drawn at GBP250,000 with final repayments on 31 October 2023, and
GBP250,000 in relation to a trade finance facility announced on 5
June 2023 repayable in full on 30 October 2023.
(1) Underlying LBITDA represents loss for the period before
finance expense, tax, depreciation and amortisation, and
non-underlying items.
(2) Underlying loss before tax represents loss for the year
before tax and non-underlying items.
Post balance sheet placing, share subscription and retail offer
of shares
On 3 August 2023, the Company announced a placing and share
subscription at GBP0.37 per share to raise approximately GBP0.94
million and GBP0.14 million, respectively, and up to GBP0.25
million through a retail offer. The placing was conducted in two
tranches and resulted in the issue of 1,637,565 shares on 9 August
2023 and 936,900 on 22 August 2023, raising gross proceeds of
GBP0.95 million. The share subscription resulted in the issue of
378,378 shares on 9 August 2023 raising gross proceeds of GBP0.14
million. The retail offer resulted in the issue of 315,090 shares
on 25 August 2023 raising gross proceeds of GBP0.12 million. In
total 3,267,933 shares were issued through the placing, share
subscription and retail offer, raising gross proceeds of GBP1.21
million and taking the number of shares in issue to 25,375,983. The
costs of issue amounted to GBP0.13 million.
We are grateful for the support of both new and existing
shareholders, whose investment will be used to maximise the
business opportunity in front of us.
Research and development, technology and intellectual
property
Since the beginning of 2023, the Company has made a number of
significant announcements as a result of accelerating the
development of its strong pipeline of innovative new products and
fluid derivatives in response to industry demand.
LifeSafe's Lithium TRF was announced in December 2022 and
introduced to the industry in January 2023 at Intersec Dubai, the
world's leading event for emergency services, security and safety.
Lithium TRF, a variant of the Group's core eco-friendly patented
fluid, is a new non-toxic, non-hazardous and fluorine free fluid
designed to permanently extinguish and prevent the re-ignition of
lithium battery fires. The Group has submitted UK and international
patent applications to protect its innovation.
In April 2023, the new StaySafe All-in-1 fire extinguisher was
launched in the UK featuring the Group's next generation fluid. The
StaySafe All-in-1 is specifically designed to tackle ten different
types of fire, replacing the Group's successful debut product, the
StaySafe 5-in-1. The StaySafe All-in-1 was launched in the US in
July 2023 and in the Screwfix chain of 850 stores in the UK and on
its website in September 2023. The Group has submitted UK and
international patent applications to protect its innovation.
The Group's fluorine free derivatives of its existing fluids
have been developed in response to European legislation which, from
July 2025, will ban the use of fire-fighting foam containing
perfluorooctanoic acid ('PFOA'). This follows similar legislation
in North America and Australia. The global market for soon to be
banned foam extinguishers is valued at $1 billion per year (source:
Grandview Research) representing a significant opportunity for
LifeSafe.
The Group's fluorine free fluids provide an environmentally
friendly solution to future proof portable and fixed fire
extinguishing solutions ahead of the 2025 deadline and have been
endorsed and chosen by Wormald Fire & Security which entered
into a distribution agreement in Australia for LifeSafe's TRF in
September 2023. Wormald is a leading provider of fire protection
services in Australia with a 130-year heritage and was valued at
US$1bn in 1990 when bought by Tyco. In 2016, Wormald was acquired
by Evergreen Capital, LP, a New York based investment firm.
Capitalised expenditure on technology development during the
six-month period amounted to GBP161,000 (H1 2022: GBP184,000).
LifeSafe's intellectual property is protected through the grant
of two patents and patent applications for eight further fluid
derivations across the UK and internationally.
The Board recognises the importance of protecting its
intellectual property and rigorously guards its innovation. The
Group employs an intellectual property attorney to protect its
interests and has intellectual property defence and pursuit
insurance to protect its investments.
Strategic partnerships
The Group announced earlier today the significant strategic
milestone of signing its first industrial partnership agreement
with Wormald Fire & Security. Under the strategic partnership
agreement, LifeSafe will supply its new fluorine free, lithium ion
TRF fire extinguishing fluid exclusively in Australia to Wormald
for use in their range of fire safety equipment. In addition to the
expected revenue benefits from the distribution of the Group's
fluids, Wormald has provided LifeSafe with crucial introductions
and expertise in helping to access other geographies and market
sectors.
LifeSafe has also recently been appointed to QBE Insurance
Group's Solutions Panel. The appointment represents the culmination
of 14 months assessment and testing of the Group's range of fire
extinguishing fluids and products. As well as generating revenue
directly from recommendations to its customer base, QBE's powerful
endorsement of the Group's fluids will be invaluable in building
trust and credibility in the conversion of LifeSafe's growing
industrial sales pipeline.
Outlook
As previously communicated, our laser focus so far in 2023 has
been in continuing to grow consumer market penetration across all
territories using our tried and tested digital marketing
strategies. I am delighted that our significant revenue growth in
H1 2023 demonstrates this has been achieved. Our recent fundraise
has provided the working capital to satisfy this greater than
expected growth by ensuring that sufficient stock is available, and
in the right place at the right time, to meet the expected
seasonally-weighted demand in H2 2023.
We remain confident that we will achieve EBITDA profitability on
a monthly basis during Q4 2023 despite the marketing and logistics
costs required to deliver the sales growth. We are looking forward
to further scaling the consumer business in 2024 and enhancing our
margins by commencing production in the US. Given the
seasonally-weighted second half of the year, management forecasts
for 2023 year remain unchanged at this stage.
What is particularly exciting is the excellent progress we have
made in achieving the strategic milestone of signing the first
industrial partnership agreement with Wormald Fire & Security
and our appointment to QBE Insurance Group's Solutions Panel. This
lays the foundations to accessing the enhanced margins of bulk
fluid supply and international distribution agreements, which
achieve sales without the scale of marketing, commission or
logistics costs inherent in the direct-to-consumer supply model. It
is the evolution of LifeSafe as a recognised, leading fluid
technology business which will unlock the highest long-term value
for shareholders but would be impossible without the credibility
and scale generated by the digital first consumer model which has
resonated in the wider business-to-business fire safety market.
Notwithstanding the still huge and untapped addressable market
in the consumer channel, the Board is very excited about these
recent industry endorsements and expects them to be the first of
many potential game-changing opportunities in the industrial supply
of LifeSafe's fluids. As such, the Group is well placed to drive
further growth and is confident of delivering shareholder
value.
Dominic Berger
Chairman
26 September 2023
Consolidated statement of profit or loss and other comprehensive
income
For the six months ended 30 June 2023
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended 31 December
30 June 2023 30 June 2022 2022
---------------- ---- -------------------------------------------- -------------------------------------------- --------------------------------------------
Non-underlying Non-underlying Non-underlying
Before items Before items Before items
non-underlying (note non-underlying (note non-underlying (note
items 5) Total items 5) Total items 5) Total
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
Revenue 3 2,890 - 2,890 1,277 - 1,277 4,028 - 4,028
Cost of sales (1,220) - (1,220) (568) - (568) (1,732) - (1,732)
---------------- ---- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
Gross profit 1,670 - 1,670 709 - 709 2,296 - 2,296
Administrative
expenses (2,496) (413) (2,909) (1,438) (895) (2,333) (3,676) (1,415) (5,091)
--------- ---------------- --------------- --------- ---------------- --------------- ---------
Loss from
operations (826) (413) (1,239) (729) (895) (1,624) (1,380) (1,415) (2,795)
Finance expense 6,5 (23) - (23) (4) (569) (573) (5) (187) (192)
Loss before tax (849) (413) (1,262) (733) (1,464) (2,197) (1,385) (1,602) (2,987)
Taxation 7 (52) - (52) - - - 173 - 173
---------------- ---- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
Loss for the
period (901) (413) (1,314) (733) (1,464) (2,197) (1,212) (1,602) (2,814)
---------------- ---- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
Other
comprehensive
income
Total other
comprehensive
income - - - - - - - - -
---------------- ---- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
Total
comprehensive
expense (901) (413) (1,314) (733) (1,464) (2,197) (1,212) (1,602) (2,814)
---------------- ---- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
Basic and
diluted
loss per share
(GBP) 8 (0.06) (0.14) (0.15)
---------------- ---- ---------------- --------------- --------- ---------------- --------------- --------- ---------------- --------------- ---------
All amounts relate to continuing activities.
Consolidated statement of financial position
As at 30 June 2023
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 Dec
Note 2023 GBP000 2022 GBP000 2022 GBP000
------------------------------------------ ----- --------------- --------------- ---------------
Non-current assets
Intangible assets 580 302 483
Property, plant and equipment 12 9 10
592 311 493
------------------------------------------ ----- --------------- --------------- ---------------
Current assets
Inventories 1,025 329 442
Trade and other receivables 9 436 3,230 659
Cash and cash equivalents 10 24 22 1,166
------------------------------------------ ----- --------------- --------------- ---------------
1,485 3,581 2,267
Total assets 2,077 3,892 2,760
------------------------------------------ ----- --------------- --------------- ---------------
Current liabilities
Trade and other payables 11 (782) (1,583) (1,002)
Convertible loan notes 12 - (1,699) -
Borrowings 13 (449) (7) (7)
Other provisions (24) (31) (24)
------------------------------------------ ----- --------------- --------------- ---------------
(1,255) (3,320) (1,033)
------------------------------------------ ----- --------------- --------------- ---------------
Non-current liabilities
Borrowings 13 (15) (22) (19)
(15) (22) (19)
------------------------------------------ ----- --------------- --------------- ---------------
Total liabilities (1,270) (3,342) (1,052)
------------------------------------------ ----- --------------- --------------- ---------------
Net assets 807 550 1,708
------------------------------------------ ----- --------------- --------------- ---------------
Equity attributable to equity
holders of the Parent
Called up share capital 14 221 154 221
Share premium account 15 4,152 250 4,152
Share-based payment reserve 15 1,270 241 857
Convertible loan note reserve 15 - 354 -
Shares to be issued reserve 15 - 2,633 -
Retained earnings 15 (4,836) (3,082) (3,522)
------------------------------------------ ----- --------------- --------------- ---------------
Total equity 807 550 1,708
------------------------------------------ ----- --------------- --------------- ---------------
Consolidated statement of changes in equity
For the six months ended 30 June 2023
Called Share Share-based Convertible
up premium payment loan note Retained
share account reserve reserve earnings Total equity
capital GBP000 GBP000 GBP000 GBP000 GBP000
GBP000
----------------------------------- -------- -------- ----------- ----------- ---------- --------------
Balance at 1 January
2022 (Audited) 3 4,627 114 171 (5,241) (326)
----------------------------------- -------- -------- ----------- ----------- ---------- --------------
Comprehensive income
Loss for the year - - - - (2,814) (2,814)
Share-based payments - - 630 - - 630
Issue of warrants - (113) 113 - - -
Transactions with owners:
Bonus issue of shares 151 - - - (151) -
Cancellation of share
premium - (4,464) - - 4,464 -
Shares issued for cash 40 3,047 - - - 3,087
Share issue costs - (368) - - - (368)
Convertible loan notes
issued - - - 183 - 183
Convertible loan notes
exercised 27 1,423 - (354) 220 1,316
Balance at 31 December
2022 (Audited) 221 4,152 857 - (3,522) 1,708
----------------------------------- -------- -------- ----------- ----------- ---------- --------------
Balance at 1 January
2023 (Audited) 221 4,152 857 -(3,522) 1,708
------------------------------------ --- ----- ----- ------- -------
Comprehensive income
Loss for the period - - - -(1,314) (1,314)
Share-based payments - - 413 - - 413
Balance at 30 June 2023
(Unaudited) 221 4,152 1,270 -(4,836) 807
------------------------------------ --- ----- ----- ------- -------
Consolidated statement of cash flows
For the six months ended 30 June 2023
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended 31 Dec
Note 30 June 30 June 2022 GBP000
2023 GBP000 2022 GBP000
---------------------------------------------------- ------- ------------- ------------- -------------
Cash flows from operating activities
Loss before taxation from continuing
operations (1,262) (2,197) (2,987)
Adjustments for non-cash/non-operating
items:
Depreciation of property, plant
and equipment 1 1 2
Amortisation of intangible assets 65 47 90
IPO costs - - 727
Equity-settled share-based payments 413 170 630
Finance expense 22 569 192
---------------------------------------------------- ------- ------------- ------------- -------------
Operating cash flows before movements
in working
capital (761) (1,410) (1,346)
Increase in inventories (520) (139) (252)
Decrease/(increase) in trade and
other receivables 67 (463) (357)
(Decrease)/increase in trade and
other payables (218) 1,321 734
---------------------------------------------------- ------- ------------- ------------- -------------
Cash used in operations (1,432) (691) (1,221)
Corporation tax received 81 - -
---------------------------------------------------- ------- ------------- ------------- -------------
Net cash used in operating activities (1,351) (691) (1,221)
---------------------------------------------------- ------- ------------- ------------- -------------
Cash flows used in investing activities
Purchase of intangibles (161) (184) (408)
Purchase of property, plant and
equipment (4) - (1)
Net cash used in investing activities (165) (184) (409)
---------------------------------------------------- ------- ------------- ------------- -------------
Cash flows from financing activities
Shares issued for cash (net of expenses) - 87 1,993
Proceeds from borrowings 505 - -
Repayment of borrowings (118) (4) (7)
Proceeds from issue of convertible
loans - 750 750
Other interest paid (13) - (4)
Net cash generated by financing
activities 374 833 2,732
---------------------------------------------------- ------- ------------- ------------- -------------
Net (decrease)/increase in cash
and cash equivalents (1,142) (42) 1,102
Cash and cash equivalents at the
beginning of period 1,166 64 64
---------------------------------------------------- ------- ------------- ------------- -------------
Cash and cash equivalents at the
end of period 10 24 22 1,166
---------------------------------------------------- ------- ------------- ------------- -------------
Notes to the unaudited condensed interim consolidated financial
statements
1. General information
These consolidated interim financial statements were approved by
the Board of Directors on 26 September 2023.
2. Basis of preparation
These unaudited consolidated interim financial statements of the
Group are for the six months ended 30 June 2023.
The condensed consolidated interim financial statements for the
six months to 30 June 2023 do not include all the information and
disclosures required in the annual financial statements and have
not been audited or reviewed by an auditor pursuant to the Auditing
Practices Board guidance on Review of Interim Financial
Information. However, selected explanatory notes are included to
explain events and transactions that are significant for an
understanding of the changes in the Group's financial position and
performance in the period.
The condensed consolidated interim financial statements for the
six months to 30 June 2023 have been prepared on the basis of the
accounting policies expected to be adopted for the year ending 31
December 2023. These accounting policies are drawn up in accordance
with adopted International Accounting Standards ('IAS') and
International Financial Reporting Standards ('IFRS') as issued by
the International Accounting Standards Board and adopted by the
EU.
AIM-listed companies are not required to comply with IAS 34
'Interim Financial Reporting' and accordingly the Company has taken
advantage of this exemption.
3. Revenue from contracts with customers
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec 2022
2023 2022 GBP000
Geographic reporting GBP000 GBP000
---------------------- ------------ ------------ -------------
Revenue
United Kingdom 806 631 1,451
North America 2,067 561 2,372
Europe 17 85 180
Rest of the World - - 25
---------------------- ------------ ------------ -------------
2,890 1,277 4,028
---------------------- ------------ ------------ -------------
During H1 2023 the Group's supply chain resources were focussed
on satisfying the increasing demand in the UK and the US. A new
production partner for the European market has been sourced with
increased sales expected in H2 2023.
4. Segmental reporting
The Chief Operating Decision Maker ('CODM') has been determined
to be the Board of Directors. The CODM reviews the Group's internal
reporting in order to assess performance and allocate resources.
The CODM has determined that there is one single operating segment
being the sale of fire extinguishing and related products.
Information concerning geographical revenue is disclosed in note
3.
5. Non-underlying items
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec 2022
2023 2022 GBP000
GBP000 GBP000
-------------------------------- ------------ ------------ -------------
Share-based payment charges 413 170 630
IPO costs - 725 727
Other non-underlying costs - - 58
-------------------------------- ------------ ------------ -------------
Within administrative expenses 413 895 1,415
-------------------------------- ------------ ------------ -------------
Convertible loan note interest - 569 187
-------------------------------- ------------ ------------ -------------
Within finance expense - 569 187
-------------------------------- ------------ ------------ -------------
413 1,464 1,602
-------------------------------- ------------ ------------ -------------
Share-based payment charges
The Group operates equity-settled share-based remuneration
schemes for employees. The terms and conditions of the grants are
detailed below :
No. of Exercise Contractual life
Date of grant options price (GBP) Vesting conditions of options
---------------------- ---------------- -------------------- ----------------------------- -----------------------
30 September
2021(1) 1,495,650 0.48 IPO 10 years
IPO/market
11 October 2021(1) 1,645,200 0.48 capitalisation 10 years
12 months from
admission
29 March 2022(1) 1,645,200 0.16 date 10 years
Total shareholder
26 July 2022 1,167,301 0.75 return 10 years
Total shareholder
13 October 2022 974,965 0.75 return 10 years
---------------------- ---------------- -------------------- ----------------------------- -----------------------
(1) The number of share options granted, and the corresponding
exercise price, are shown after the Company's 49 for 1 bonus issue
of shares on 9 May 2022.
6. Finance expense
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec 2022
2023 2022 GBP000
GBP000 GBP000
------------------------------ ------------ ------------ -------------
Interest on bank loans 1 4 5
Interest on convertible loan
notes - 569 187
Interest on other loans 22 - -
------------------------------ ------------ ------------ -------------
23 573 192
------------------------------ ------------ ------------ -------------
7. Income tax expense
No income has yet been recognised in H1 2023 in relation to
R&D tax credits available from HMRC through the SME R&D
relief scheme for 2023. The charge of GBP52,000 in the Period
relates to an adjustment to the R&D tax credit estimate for
2022 recognised in the year ended 31 December 2022.
8. Loss per share
Loss per share is calculated as follows:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec 2022
2023 2022
---------------------------------- ------------ ------------ -------------
Basic and diluted loss per share
(GBP) (0.06) (0.14) (0.15)
---------------------------------- ------------ ------------ -------------
The calculations of basic and diluted loss per share are based
upon:
Loss for the period attributable
to owners of the Parent (GBP000) (1,314) (2,197) (2,814)
------------------------------------- ----------- ----------- -----------
Weighted average number of ordinary
shares 22,108,050 15,391,302 18,666,870
------------------------------------- ----------- ----------- -----------
The calculation of the basic loss per share is based on the
results attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
The weighted average number of shares in issue is used as the
denominator in calculating the basic loss per share. As the Group
is loss making the effect of instruments that convert into ordinary
shares is considered anti-dilutive, hence there is no difference
between the diluted and non-diluted loss per share.
9. Trade and other receivables
(Unaudited) (Unaudited) (Audited)
30 June 30 June
2023 2022 31 Dec 2022
GBP000 GBP000 GBP000
-------------------------------- ------------- ------------ -------------
Amounts falling due within one
year:
Trade receivables 24 19 17
Other receivables 119 3,061 160
Taxation and social security 154 140 326
Prepayments and accrued income 139 10 156
436 3,230 659
-------------------------------- ------------- ------------ -------------
Other receivables at 30 June 2022 included GBP3,000,000 of
committed subscriptions to the Company's placing of shares and
Admission to AIM on 6 July 2022. The committed subscriptions were
in the form of irrevocable placing letters held by the Company's
Broker and Nominated Adviser.
10. Cash and cash equivalents
(Unaudited) (Unaudited) (Audited)
30 June 30 June
2023 2022 31 Dec 2022
GBP000 GBP000 GBP000
---------------------------------- ------------- ------------ -------------
Cash at bank available on demand 24 22 1,166
24 22 1,166
---------------------------------- ------------- ------------ -------------
11. Trade and other payables
(Unaudited) (Unaudited) (Audited)
30 June 30 June
2023 2022 31 Dec 2022
GBP000 GBP000 GBP000
------------------------------------ ------------- ------------ -------------
Trade payables 515 513 665
Other payables 2 110 61
Accruals and deferred income 113 896 181
Other taxation and social security 152 64 95
------------------------------------ ------------- ------------ -------------
782 1,583 1,002
------------------------------------ ------------- ------------ -------------
Trade payables and accruals and deferred income at 30 June 2022
included GBP984,000 of IPO costs paid after that date.
12. Convertible loan notes
(Unaudited) (Unaudited) (Audited)
30 June 30 June
2023 2022 31 Dec 2022
GBP000 GBP000 GBP000
------------------------------- ------------- ------------ -------------
Amounts falling due within one
year:
Convertible loan notes - 1,699 -
------------------------------- ------------- ------------ -------------
- 1,699 -
------------------------------- ------------- ------------ -------------
On Admission to AIM on 6 July 2022, all outstanding convertible
loans converted to equity with the Company issuing 2,716,550
ordinary shares to the providers of all convertible loans
outstanding at 30 June 2022.
13. Borrowings
(Unaudited) (Unaudited) (Audited)
30 June
2023 30 June 2022 31 Dec 2022
GBP000 GBP000 GBP000
-------------- ------------- -------------- -------------
Current:
Bank loans 7 7 7
Other loans 442 - -
Non-current:
Bank loans 15 22 19
464 29 26
-------------- ------------- -------------- -------------
Bank loans comprise a Coronavirus Bounce Back Loan Scheme loan
provided by HSBC. The loan was taken out in May 2020 and matures
five years after this date.
Other loans include GBP142,000 in relation to a supplier invoice
finance facility announced on 31 March 2023 and originally drawn at
GBP250,000 with final repayments on 31 October 2023, and GBP250,000
in relation to a trade finance facility announced on 5 June 2023
repayable in full on 30 October 2023.
14. Share capital
(Unaudited) (Unaudited) (Audited)
30 June 30 June
2023 2022 31 Dec 2022
GBP000 GBP000 GBP000
--------------------------------- ------------- ------------ -------------
Allotted, called up and fully
paid
Ordinary shares of GBP0.01 each 221 154 221
--------------------------------- ------------- ------------ -------------
221 154 221
--------------------------------- ------------- ------------ -------------
Called up share capital
Called up share capital represents the nominal value of shares
that have been issued.
All classes of shares have full voting, dividends, and capital
distribution rights.
Further to the Period end, the Company issued 3,267,933 ordinary
shares taking the number of shares in issue to 25,375,983 (see note
16).
15. Reserves
Share premium account
This represents the excess value recognised from the issue of
ordinary shares above nominal value.
Share-based payment reserve
This represents the cumulative fair value of share options
charged to the consolidated statement of comprehensive income net
of the transfers to the profit and loss reserve on exercised and
cancelled/lapsed options.
Retained earnings
This represents cumulative net gains and losses less
distributions made.
16. Post balance sheet events
On 3 August 2023, the Company announced a proposed placing and
share subscription at GBP0.37 per share to raise approximately
GBP0.94 million and GBP0.14 million respectively, and up to GBP0.25
million through a retail offer.
The proposed placing was conducted in two tranches and resulted
in the issue of 1,637,565 shares on 9 August 2023 and 936,900 on 22
August 2023, raising gross proceeds of GBP0.95 million. The share
subscription resulted in the issue of 378,378 shares on 9 August
2023 raising gross proceeds of GBP0.14 million. The retail offer
resulted in the issue of 315,090 shares on 25 August 2023 raising
gross proceeds of GBP0.12 million.
In total 3,267,933 shares were issued through the placing, share
subscription and retail offer, raising gross proceeds of GBP1.21
million and taking the number of shares in issue to 25,375,983. The
costs of issue amounted to GBP0.13 million.
On 22 August 2023, a General Meeting of the Company was held in
which the Directors obtained authority to allot certain of the
placing and retail offer shares. In addition to this specific
authority, the Board also obtained the approval of shareholders to
give the Directors the additional general authority to freely allot
up to 10% of the enlarged share capital.
17. Availability
Further copies of this interim announcement are available on the
LifeSafe Holdings plc investor relations website,
www.lifesafeholdingsplc.com .
- Ends -
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END
IR NKPBQPBKDBCB
(END) Dow Jones Newswires
September 26, 2023 02:05 ET (06:05 GMT)
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