TIDMPODP
RNS Number : 6425H
Pod Point Group Holdings PLC
31 July 2023
31 July 2023
Pod Point Group Holdings PLC (Symbol: PODP)
Unaudited half-year results for the six months ended 30 June
2023
New team addressing the challenges to capture long term
opportunities
Pod Point Group Holdings plc (the "Company") and its
subsidiaries (the "Group"), one of the UK's market leading
providers of Electric Vehicle ("EV") charging solutions, announces
its unaudited half-year results for the period ended 30 June 2023
and begins its transformation plan to address performance
issues.
Key Financials Six months Six months Change
to 30.06.23 to 30.06.22
Total Revenue GBP30.6m GBP41.6m -26%
Adjusted EBITDA( (1 ) GBP(6.8)m GBP(1.4)m GBP(5.4)m
EBITDA Loss GBP(9.4)m GBP(4.0)m GBP(5.4)m
Loss Before Tax GBP(32.8)m GBP(7.5)m GBP(25.3)m
Closing cash and cash GBP58.8m GBP82.1m GBP(23.3)m
equivalents
(1) See Notes below for definition of Adjusted EBITDA
Group Highlights
-- Compared to a very strong H1 2022, Revenue at GBP30.6m, down
by 26% against a very strong prior year comparison that benefitted
from pull forward demand from ending of OZEV grant.
-- Overall Gross Margin up 500bps to 30% from 25%, driven by
improved supply chain, product savings, pricing and margin mix
improvement.
-- Growth of communicating units to 212k, up by 21% across all
customers, strengthening the foundations of future recurring
revenue and leading to first Grid Load Management revenue expected
in FY2023 from UK Power Networks.
-- Continued strong growth in Owned Asset revenue up 172% and Recurring revenue up 87%.
-- Home revenue, a key focus for the transformation plan, down
54%, reflecting a more challenging market with reduced market
penetration.
-- Adjusted EBITDA loss of GBP 6.8m below expectations on lower
revenues, but with continued investment in future growth.
-- Non-cash goodwill impairment charge of GBP18.6m drives Loss Before Tax to GBP32.8m.
-- Strong balance sheet with GBP58.8m cash.
-- Following the appointment of interim CEO Andy Palmer, the
Board is focused on delivering near term operational performance
improvement and strengthening the Group's foundations to deliver
long term shareholder value creation. The Group will host a Capital
Markets Event during Q4 2023 to provide an update on its refined
strategy and transformation plan.
-- The Board has appointed a search firm to recruit a new CEO
for the Group. Updates will be provided in due course.
Strategic and Operational Summary
-- First Grid Load Management contract signed with UK Power
Networks, leading to first consumer-related recurring revenue
expected in 2023 financial year.
-- Large contract wins with three of the major UK Housebuilders
- Barratt Development, Bellway and Taylor Wimpey, opening
significant growth pipeline in this large segment.
-- Significant growth in network usage, with electricity
transferred across our network up 26% at 215 GWh, helping to avoid
163k tonnes of CO2e(1) , up 26% on 2022.
-- Excellent levels of customer service maintained with a 4.3
out of 5 rating on Trustpilot and a 4. 6 out of 5 rating on
reviews.io with a 91% recommendation rate .
-- Home charge Average Basket Spend increased by 7% to GBP800.
-- Headline Home Market Penetration (2) down by 15ppt% from 22%
to 7%, with the conclusion of OZEV grant that caused customers to
pull forward home charge purchases resulting in an overweight 2022
penetration, combined with a weaker 2023 charge point demand
market.
-- Owned Asset site expansion in Tesco deal near end of rollout:
increased to 593 sites with 1334 charging points including 140 DC
rapid units.
-- Improving of supply chain dynamics and good start to Celestica relationship.
(1) Consistent methodology with 2022 reporting
(2) Home installation units (excluding wholesale units) as a %
of reported SMMT PIV registrations in same period
Andy Palmer, Interim Chief Executive Officer of Pod Point,
said:
The first half of 2023 has been complex, and we have faced
numerous challenges, both internally and externally, including the
well documented inflationary pressures and cost of living crisis.
Pod Point has lots of reasons to be pleased with progress made
during the period, including several high-profile contract wins
with large UK housebuilders and our first grid load management
contract, significant improvements in our supply chain and a big
step-up in our recurring revenues. Our connected charging network
has increased to 212,000 and remains by far the largest in the UK.
Following my appointment as Interim CEO, we are reviewing areas of
improvement that will strengthen our foundations for long-term
future success and growth.
Financial Summary Six months Six months Period on
to 30.06.23 to 30.06.22 period change
GBP'000 GBP'000
Total revenue 30,614 41,552 -26%
Home 12,415 27,219 -54%
Commercial 12,722 12,084 5%
Owned Assets 4,052 1,489 172%
Recurring Revenue 1,425 760 87%
Gross profit 9,239 10,388 -11%
Gross margin 30% 25% +5ppt%
------------------------- ------------- ------------- ---------------
Home gross profit 3,426 6,285 -45%
Home gross margin 28% 23% +5ppt%
------------------------- ------------- ------------- ---------------
Commercial gross profit 3,746 2,776 35%
Commercial gross margin 29% 23% +6ppt%
------------------------- ------------- ------------- ---------------
Adjusted EBITDA( (1 ) (6,778) (1,414) (5,364)
EBITDA Loss (9,381) (3,992) (5,389)
Loss before tax (32,815) (7,546) (25,269)
Closing cash and cash
equivalents 58,766 82,086 (23,320)
Headline KPIs Six months Six months Period on
to to period change
30.06.23 30.06.22
Total UK new PiV(2) sales 215,120 166,512 29%
Home units installed 15,525 36,576 -58%
Commercial units installed
and shipped 9,668 8,844 9%
------------------------------------ ----------- ----------- ---------------
Home market penetration 7 % 22% -15ppt%
Total Home units installed
and able to communicate
at period end 188,158 156,398 20%
------------------------------------ ----------- ----------- ---------------
Total Commercial units
installed and able to communicate
at period end 23,771 18,732 27%
------------------------------------ ----------- ----------- ---------------
Average recurring revenue
per unit(3) GBP60 GBP41 46%
Total Owned Asset sites
at period end 593 500 19%
------------------------------------ ----------- ----------- ---------------
Total Owned Asset Charge
Points at period end 1,334 1,109 20%
------------------------------------ ----------- ----------- ---------------
Total Owned Asset Rapid/DC
Charge Points at period
end 140 101 39%
------------------------------------ ----------- ----------- ---------------
Notes
(1) Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortisation and also excluding both amounts
charged to the income statement in respect of the Group's share
based payments arrangements and adjusting for large corporate
transaction and restructuring costs. These have been separately
identified by the Directors and adjusted to provide an underlying
measure of financial performance. The reconciliation is set out on
the income statement and N ote 5 provides a summary of the amounts
arising from the large corporate transactions and restructuring
costs.
(2) PiV defined as "Plug-in Vehicles"
(3) Average recurring revenue per unit is calculated as
recurring revenue divided by the total number of Commercial units
installed and able to communicate at a period end. Commercial units
shipped but not installed by Pod Point are not included in this
statistic.
Current trading and outlook
2023 has proven volatile during the first half, with weaker
revenue trends being partially offset by significantly higher gross
margin. Headline market data suggests strong growth in the PIV
market, but trends between private customers and fleet customers
have been divergent. While inflation has eased slightly in the most
recent data, cost of living pressures remains and are likely to
continue to weigh on consumer confidence.
Consequently, the Group has updated revenue guidance for 2023 to
be at least GBP60m. Adjusted EBITDA loss for 2023 is now expected
to be no greater than GBP17m. The updated adjusted EBITDA guidance
includes the impact of lower revenues, and an expected GBP5m of
costs related to transformation plan initiatives and growth
investments identified as part of the ongoing strategy review and
non-cash charges. We expect the improvement in gross margin seen in
H1 to continue in the second half on improved supply chain and
actions taken by the Group. Our year-end cash position is expected
to be between GBP40-45 million.
Webcast presentation
There will be a webcast presentation for investors and analysts
this morning at 09:00 am. Please contact podpoint@teneo.com if you
would like to attend.
Enquiries:
Pod Point Plc
Andy Palmer, interim Chief Executive Officer
David Wolffe, Chief Financial Officer
Phil Clark, Investor Relations phil.clark@pod-point.com
Numis (Joint Corporate Broker)
Jonathan Wilcox / Andrew Coates +44 (0)20 7260 1000
BofA Securities (Joint Corporate Broker)
Marcus Jackson / Mitchell Evans +44 (0)20 7628 1000
Media
Mark Burgess / Matt Low / Arthur Rogers (Teneo) +44 (0)20 7353
4200 podpoint@teneo.com
About Pod Point Group Holdings plc
Pod Point was founded in 2009 by entrepreneur Erik Fairbairn.
Driven by a belief that travel shouldn't damage the earth, Pod
Point has 212k smart communicating charge points on its network and
is an official charge point supplier for major car brands.
Pod Point installs a broad range of products from smart domestic
charge points to high power rapid chargers and load balancing
systems. Pod Point works with a broad range of organisations and
customers to offer home and commercial charging solutions with
customers including major retailers, hotels, restaurants and
leisure venues.
Pod Point is admitted to trading on the London Stock Exchange
under the ticker symbol "PODP."
For more information, visit https://pod-point.com/
Chief Executive's Review
The first half of 2023 has been another dynamic period for the
Group with lots of successes, lots of challenges and most recently
a period of transition with the departure of the Group's Founder
and CEO. When taking on the role of interim CEO, I promised to
provide an update on key priorities for the Group. The Board
remains extremely confident in the long-term future for Pod Point
and its core mission and plan. The Group has made a strong start in
capturing the opportunities created by the transition to electric
vehicles and our long-term shareholder value creation potential
remains huge. However, it is clear there are certain areas that we
need to improve on, particularly around operational processes and
moving towards profitability as quickly as possible.
Alongside the Executive team and the Board, I have conducted a
rapid initial review of our business. We have identified three
critical areas that need strategic and operational review.
1. Growth.
While the Group had a strong track record of delivering rapid
growth for several years, the performance in the last 12 months has
been very disappointing and we have lost market share in an
increasingly competitive market. We are acting quickly to
re-establish our market leading position on new installations,
focusing on product innovation and operational excellence. The
Board is in no doubt that the Group has significant growth
potential, and we need to reassess our strategic priorities to
ensure we fully leverage our competitive advantages of brand
awareness, existing installed base, strong OEM and Commercial
relationships and emerging recurring revenue streams.
Pod Point is positioned well to take advantage of strong
relationships with OEM partners and of the OZEV scheme to sell
charging points. However, this has been done at the detriment of
building internal sales capabilities and at this time these remain
insufficient to drive growth. With the shifts in the market and the
end of the OZEV scheme, our sales have slowed. We are therefore
re-focusing on re-establishing greater internal sales capabilities
and resources.
2. Product innovation.
Pod Point had a clear early lead in charge point technology. Our
products are reliable, robust, easy to use and offer great value.
However, while we still have a strong product set, we have failed
to maintain our leadership position and been slow to anticipate the
market evolution to open architecture technology. We are
re-establishing a clear product innovation roadmap that keeps pace
with customer requirements in a cost-effective way. The
introduction of OCPP (Open Charge Point Protocol) and OCPI (Open
Charge Point Interface) capabilities in our product is a key
priority, unlocking new growth opportunities.
3. Cost and ROI discipline.
The Group has not had a consistent and disciplined enough
approach to capital allocation and investment in our cost base.
Consequently, we have not prioritised investments into those areas
that will deliver break-even in our core charging business. We need
to ensure greater operational control across the business, and we
will implement a clearer investment criteria framework and return
on capital hurdle rates for our investment decisions. Accelerating
our path to profitability and careful deployment of our cash will
be a key focus for the Group.
A transformation programme is in development, with further
details and a strategy update in Q4 at a CMD.
Immediate priorities for H2 2023
For the balance of 2023, the Board and Executive team will focus
on refining our tactical and strategic response to each of these
areas, including the engagement of external consultants to support
a strategic and operational review of the Group. This work,
combined with core workstreams identified by the management team
will create the Group's transformation plan, Powering Up.
The intent of this work and our response to current
company-specific challenges is to ensure that Pod Point is well
placed to take advantage of our key strengths to (1) move to
break-even as quickly as possible in our core charging business and
(2) capture the long-term structural growth opportunities created
by the decarbonisation of the economy.
-- Brand . Pod Point has strong brand awareness and is well
regarded by consumers. A recent YouGov survey showed Pod Point has
the leading brand consideration in the sector.
-- Network. Our installed network of charging points is now
212,000, up 9% compared to 31 December 2022. Pod Point has the
largest home charging network in the UK.
-- Partnerships . The Group has established significant
partnerships with many of the largest OEMs in Europe as well as
being a strong partner for home electric charging points for 13 of
the largest 15 homebuilders in the UK.
-- Routes to market . Pod Point has a range of routes to market
for its charge points: Direct to Consumer, OEM referral, Leasing,
Wholesale, Housebuilders, and B2B Commercial across retail,
leisure, logistics and others. This provides us with
diversification and leverages our partnerships.
-- ESG credentials . Our mission is unchanged, to provide travel
that doesn't damage the Earth. We have a strong ESG mindset and
will provide an update of our ESG programme at our preliminary
results.
-- Balance sheet strength . Pod Point is well capitalised. Our
GBP58.8 million of cash at the end of H1 2023 means we have
sufficient financial resources to deliver on our medium-term
plan.
By doing this, we are creating a significant installed base of
connected charge points that will unlock our grid load management
potential, with its high margin and recurring revenue streams.
The Group will host a capital markets event during Q4 2023 to
provide more detail of our transformation plan, key initiatives and
updated strategic plan. We will provide more detail on the grid
management and recurring revenue opportunity for Pod Point. At the
event, financial and operational targets will be provided.
Overview of results:
Performance in H1 reflects a significant degree of challenge.
Although a key highlight is gross margin progression, revenue
growth has been disappointing.
Like many other companies, we are seeing how a poor
macroeconomic environment with low consumer confidence is currently
constraining both consumer and commercial demand.
Despite challenging conditions in 2023, we continued to invest
in our business, because we see a strong industry growth trajectory
over the next decade as the UK navigates the journey to all
vehicles being electric. We have an opportunity to cement a leading
position in the market.
In H1 2023, we shipped and installed 25,193 charge points, with
the commercial sector leading with 9% increase year on year.
During the year, we also made significant steps towards
improving our gross margin, avoiding additional supply chain costs,
having full production of our highest volume products with leading
global manufacturer, Celestica, and by growing our average basket
spend in our home charge sector from GBP746 to GBP800.
We saw exceptional growth in our small but vitally important
recurring revenue sector, specifically growing our average
recurring revenue per commercial unit from GBP41 to GBP60 and
growing our overall recurring revenue by 87% year on year.
Furthermore, we saw 172% growth in our revenues from our Owned
Assets, predominantly driven by our relationship with Tesco and
introduction of increased charging tariffs.
Overall, we ended the year with circa 212k communicating charge
points, which is a significant step toward our plans to enable grid
load management functionality across our network.
The recent announcement of the deal with UK Power Networks is a
significant marker of our progress towards the beginning of a new
stream of recurring revenues relating to consumers and the value of
our network in terms of grid load management. We expect to
recognise our first revenues in this financial year 2023.
Pod Point's mission is to enable travel that doesn't damage the
Earth, so we were also very pleased to see strong growth in the
energy transferred across our network, (215GWh HY23 vs 171GWh HY22)
and the corresponding growth in the amount of carbon avoided by our
customers (163k tonnes HY23 vs 129k tonnes HY22).
We recognise that performance in the last 6 months has been
disappointing, and we are committed to addressing the underlying
issues, and know we can build on some core strengths of the
business.
We continue to be very excited by the growth prospects for
charging underpinned by the government's 2030 internal combustion
engine ban. The opportunity from Grid services is even more
exciting.
I would like to thank the whole team at Pod Point for the hard
work of the last 6 months, the warm welcome to my new role, and the
clear commitment to the revitalisation of the business.
Sector Review
In the Home business segment:
-- Revenue of GBP12.4 million was 54% down compared to of GBP27.2 million in H1 2022.
-- New plug-in vehicle registrations increased 29% to 215,120 in
H1 2023 from 166,512 in H1 2022. This continued growth reflects
continued demand for EVs, but it is important to note that the
retail/consumer side of the market showed significant weakness. The
number of Pod Point Home units installed fell to 15,525 versus
36,576 in H1 2022.
-- Our headline market penetration of new plug-in vehicle
registrations therefore decreased to 7% from 22% in H1 2022. There
are a range of factors that we believe contributed to this
including:
o Increased consumer cost of home charge units as a result of
the end of the OZEV grant, and the cost-of-living crisis may have
reduced the average ratio of home charge units to plug-in
vehicles.
o Shifting market mix in 2023 away from private EV sales towards
fleet, with the private market showing weak demand for charge
points, and fleet sales showing increased vehicle renewals where no
charge point is required.
-- Percentage gross margin in H1 2023 increased 500 basis points
to 28% compared to H1 2022 at 23%, driven by the avoidance of
component sourcing costs, improved Average revenue per unit, and a
full period of improved Bill of Material (BoM) costs. Average
revenue per unit increased to GBP800 from GBP746 in H1 2022.
-- The lower revenue growth drove total gross margin lower in H1
2023, falling to GBP3.4 million compared to GBP6.3 million in H1
2022.
In the Commercial business segment:
-- We delivered a steady performance, with revenue of GBP12.7
million compared to H1 2022 of GBP12.1 million, an increase of 5%
on average, with higher growth in our supply only segment.
-- Number of units installed decreased to 1,890 from 2,112 in H1
2022 and the number of units sold directly to customers increased
to 7,778, compared to 6,732 in H1 2022. This represents a direct
sale increase of 16%.
-- The increased revenues helped to increase total gross margin
in H1 2023 to GBP3.7 million, compared to H1 2022 at GBP2.8
million, an increase of 35%.
-- Percentage gross margin increased by 600 basis points to 29%
in H1 2023 from 23% in H1 2022, due to a shift in the mix of
installations toward higher margin direct sale units.
In the Recurring Revenue business segment:
-- We delivered excellent growth in our recurring revenue
segment, albeit from a low base, with revenue of GBP1.4 million in
H1 2023 compared to H1 2022 of GBP0.8 million, an increase of 87%.
Network revenues in H1 2023 grew by 18% to GBP0.542 million
compared to H1 2022 of GBP0.460 million.
-- This increase in revenues helped to increase gross margin in
H1 2023 to GBP0.9 million, compared to H1 2022 of GBP0.4 million,
an increase of 108%.
-- Percentage gross margin in H1 2023 increased to 62% compared
to 56% in H1 2022, an increase of 6 percentage points, with the
average recurring revenue per commercial unit installed and able to
communicate increasing to GBP60, compared to GBP41 in H1 2022.
-- The number of Commercial units installed and able to
communicate at the period end increased to 23,771 from 21,342 at
the end of 2022. All recurring revenues in both 2023 and 2022 were
derived from these units.
-- The number of Home units installed and able to communicate at
the period end increased to 188,158 from 173,754 at the end of
2022. This growth is strategically significant as we seek to expand
our recurring revenue products across these units.
In the Owned Asset business segment:
-- We delivered a strong performance with revenue of GBP4.1
million in H1 2023 compared to H1 2022 of GBP1.5 million, an
increase of 172%.
-- The total number of sites installed at the period end
increased to 593 from 564 at the end of 2022 and 500 at June 2022.
The total number of units installed at the period end increased to
1,334 from 1,259 at the end of 2022, including 140 DC rapid units
at 30 June 2023 compared to 117 at the end of 2022.
-- This increase in revenues and units helped to increase gross
margin in H1 2023 to GBP1.2 million compared to H1 2022 at GBP0.9
million, an increase of 31%.
-- Percentage gross margin in H1 2023 decreased to 29% compared
to H1 2022 of 61%, a decrease of 32 percentage points, due to
revenue mix.
-- Gross capital deployed on assets increased to GBP6.9 million
at the end of H1 2023, compared to GBP6.3 million at the end of
2022.
Financial Performance
It was a disappointing performance by the business in H1 2023
with total revenue of GBP30.6 million (H1 2022: GBP41.6 million), a
decrease of 26%. Better growth came from our Commercial business
segment, and we also saw very high growth in Recurring Revenue and
Owned Assets.
Reduced revenue, mitigated by significant margin improvement,
moderated the decrease in total gross profit in H1 2023 of GBP9.2
million (H1 2022: GBP10.4 million) to a period on period decrease
of 11%.
Compared to H1 2022 and its additional costs of sourcing
components in the spot market, with improvements in the sales mix,
and underlying BoM improvements, as well as pricing changes,
percentage gross margin in H1 2023 increased to 30% (H1 2022: 25%),
a period-on-period increase of 5 percentage points.
The reduced revenues and gross profit combined with increased
overhead spend to invest in driving future growth, focussed on
sales and marketing, customer service and team development. This
moved the business to an adjusted EBITDA loss of GBP6.8 million in
H1 2023 (H1 2022: GBP1.4 million).
After further investment of GBP6.0 million in software and
product development and controlled investment in Owned Assets, H1
2023 period end cash and short-term investments were GBP58.8
compared to GBP74.1 million at the end of 2022.
Unadjusted losses after tax increased to GBP33.0 million in H1
2023 (H1 2022: GBP7.5 million). EBITDA losses increased in H1 2023
with losses of GBP9.4 million (H1 2022: GBP4.0 million). There were
increased depreciation and amortisation costs of GBP5.1 million in
H1 2023 (H1 2022: GBP3.5 million), while net financing income was
GBP0.3 million (H1 2022: net finance costs of GBP0.1 million).
Total administrative expenses increased to GBP43.0 million in H1
2023 (H1 2022: GBP17.9 million), an increase of 140%. This increase
was due to a goodwill impairment loss recognised in H1 2023 of
GBP18.6m (H1 2022: nil), additional staff to deliver future growth,
additional depreciation and amortisation costs as a result of
increased funds being invested in Owned Assets and intangible asset
development. Looking at these individually:
-- Administrative expenses excluding restructuring costs, share
based payments, depreciation and amortisation and goodwill
impairment costs increased to GBP16.6 million in H1 2023 (H1 2022:
GBP11.8 million) an increase of 41%. This increase was due to
additional staff and overheads to drive future growth, albeit that
growth in 2023 has been short of expectations.
-- Depreciation and amortisation costs increased in H1 2023 to
GBP5.1 million (H1 2022: GBP3.5 million) as a result of additional
funds being invested in product and software development and other
assets.
-- A goodwill impairment charge recognised in H1 2023 of GBP18.6m (H1 2022: nil).
-- Following the listing in November 2021, Pod Point incurred
share based payment charges relating to a number of share awards
that were implemented at or soon after listing, resulting in an H1
2023 charge to the P&L of GBP2 million (H1 2022: GBP2.6
million) and national insurance accrued on share based payment
charges of GBP0.3 million (H1 2022: GBP0.3 million).
-- In H1 2023, GBP0.4 million of restructuring costs were incurred (H1 2022: GBPnil).
Net finance income increased to GBP0.3 million in H1 2023 (H1
2022: net finance costs of GBP0.1 million ).
Our balance sheet remains strong. Working capital movements have
been limited across trade and other receivables, inventory and
trade and other payables. Fixed assets grew as we continue to build
the software platforms that will drive future growth.
Closing cash and cash equivalents were GBP58.8 million at 30
June 2023 (31 December 2022: GBP74.1 million). Closing net assets
were GBP152.8 million (31 December 2022: GBP184.2 million)
Cash outflow from operating activities in H1 2023 increased by
GBP0.2 million to GBP8.9 million (H1 2022: GBP8.7 million) . This
was primarily due to a larger operating loss.
Cash flow from investing activities had outflows of GBP6.3
million in H1 2023 (H1 2022: inflows of GBP44.3 million). This
swing is primarily the result of a GBP50m investment in bank
deposits in 2021 that was redeemed in 2022. Aside from this, the
business in H1 2023 invested GBP6.0 million in capitalised software
development to drive future recurring revenues.
Cash flow from financing activities were an outflow of GBP0.1
million in H1 2023 (H1 2022: inflow of GBP0.3 million).
During H1 2023, transactions with related parties included sale
of goods of GBP0.1 million (H1 2022: GBP43k) and purchase of goods
of GBP0.1 million (H1 2022: GBP0.3 million). These transactions
were undertaken with the shareholders EDF Energy Customers Limited
and its subsidiaries and related parties.
Principal Risks and Uncertainties
Effective risk management is essential to the achievement of our
strategic objectives and driving sustainable
business growth. We aim to maintain an appropriate balance
between protecting the company against specific
risks while being able to encourage appropriate and monitored
risk-taking and innovation that allows us to take advantage of
business opportunities.
The Board, as part of its half year processes, considered
reports from management reviewing the principal risks and
uncertainties and how these might evolve during the second half of
2023.
Following this review the Board is satisfied that the Group's
principal risks remain unchanged from those contained in our 2022
Annual Report to bring to your attention. These are listed
below:
1. Dependency on the continuing adoption of and demand for
EVs
2. Competition in the industry and market segment
3. Delays to Product Development
4. Ongoing and potential future disruptions to the global supply
chain
5. Government and regulatory initiatives with unknown
outcomes
6. Health and safety risks related to our products,
installation, maintenance and operation of electrical equipment
7. Potential undetected defects, errors or bugs in hardware or
software
8. Deterioration of economic conditions in the UK, the UK's
economic relationship with the EU and the possibility of a future
health pandemic
9. Disruptions to our network and IT systems
10. Ability to hire and retain key management and other skilled
employees
Further details of the Group's principal risks and uncertainties
can be found on pages 64-73 of the 2022 Annual Report, which is
available on https://investors.pod-point.com/
Director's Responsibilities Statement
We confirm that to the best of our knowledge:
a) The condensed set of financial statements has been prepared
in accordance with IAS 34 "Interim Financial Reporting"
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risk and
uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related party
transactions and changes therein).
By order of the Board
D Wolffe
Director
31 July 2023
Basis of Preparation and General Information
The condensed consolidated interim financial statements for Pod
Point Group Holdings Plc (the Company) and its subsidiaries
(together, the Group) have been prepared using accounting policies
consistent with IFRS as adopted by the UK and in accordance with
IAS 34 "Interim Financial Reporting". The same accounting policies
and methods of computation are followed in this set of condensed
consolidated interim financial statements as compared with the most
recent Annual Report. A copy of the statutory accounts for the year
ended 31 December 2022 has been delivered to the Registrar of
Companies. The auditor's report on those accounts was not
qualified, did not draw attention to any matters by way of emphasis
and did not contain statements under Section 498(2) or (3) of the
Companies Act 2006.
The condensed consolidated interim financial statements do not
constitute the full financial statements prepared in accordance
with International Financial Reporting Standards (IFRS) and have
been prepared on a going concern basis.
The condensed consolidated interim financial statements was
approved by the Board of directors on 30 July 2023.
Consolidated Income Statement
Six months Six months
ended ended
30 June 30 June Year ended
2023 2022 31 December
Notes (unaudited) (unaudited) 2022
----- ------------ ------------ ------------
GBP'000 GBP '000 GBP '000
Revenue (including OZEV
revenues) 2,3 30,614 41,552 71,409
Cost of sales (21,375) (31,164) (54,820)
------------ ------------ ------------
Gross profi t 9,239 10,388 16,589
------------ ------------ ------------
Other income 600 - 1,461
Administrative expenses (42,991) (17,857) (38,065)
------------ ------------ ------------
Operating loss (33,152) (7,469) (20,015)
Analysed as:
Adjusted EBITDA(1) (6,778) (1,414) (7, 040 )
Restructuring costs(2) 5 (359) - ( 57 )
Share-based payments 14 (2,244) (2,578) (5, 175 )
EBITDA(1) (9,381) (3,992) (12, 272 )
------------ ------------ ------------
Amortisation and depreciation (5,126) (3,477) (7,743)
Goodwill impairment 7 (18,645) - -
------------ ------------ ------------
Group operating loss (33,152) (7,469) (20,015)
------------ ------------ ------------
Finance income 6 542 75 457
Finance costs 6 (205) (152) (366)
------------ ------------ ------------
Loss before tax (32,815) (7,546) (19, 924 )
Income tax expense (138) - (287)
Loss after tax (32,953) (7,546) (20, 211 )
------------ ------------ ------------
Basic and diluted loss per
ordinary share 15 GBP(0.22) GBP(0.05) GBP(0.13)
Notes:
(1) EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, and is considered by the Directors
to be a key measure of financial performance. Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortisation and excluding both amounts charged to the income
statement in respect of the Group's share based payments
arrangements and also adjusting for restructuring costs. These have
been separately identified by the Directors and adjusted to provide
an underlying measure of financial performance. The reconciliation
is set out on the income statement and Note 6 provides a summary of
the amounts arising from the restructuring costs.
(2) See Note 5
(3) All amounts relate to continuing activities.
( 4 ) All realised gains and losses are recognised in the
consolidated income statement and there is no other comprehensive
income.
( 5 ) The notes on pages 20 to 31 form part of the Condensed
consolidated interim financial statements.
( 6 ) There is no other comprehensive income in the years
presented and therefore no separate statement of other
comprehensive income is presented.
Consolidated Statement of Financial Position
As at As at
30 June 30 June As at
2023 2022 31 December
Notes (unaudited) (unaudited) 2022
----- ------------ -------------------- -------------
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 7 58,994 77,639 77,639
Intangible assets 7 35,231 31,440 33, 236
Property, plant and equipment 8 5,619 5,009 5,498
Deferred tax asset 5, 471 7,309 5,670
Right of use assets 2,949 2,655 2,914
------------ -------------------- -------------
108,264 124,052 124,957
------------ -------------------- -------------
Current assets
Inventories 9 8,012 7,631 7,342
Trade and other receivables 10 28 ,572 26,381 26, 882
Cash and cash equivalents 58,766 82,086 74,103
------------ -------------------- -------------
95 ,350 116,098 108,327
------------ -------------------- -------------
Total assets 203,614 240,150 233,284
Current liabilities
Trade and other payables 11 (37,504) (30,843) (36, 419 )
Loans and borrowings 12 (1,271) (1,343) (2,842)
Lease liabilities (1,466) (1,212) (1,634)
Provisions (290) (238) (265)
------------ -------------------- -------------
(40,531) (33,636) (41, 160 )
------------ -------------------- -------------
Net current assets 54,819 82,462 67,167
------------ -------------------- -------------
Total assets less current
liabilities 163,083 206,514 192,124
------------ -------------------- -------------
Non-current liabilities
Loans and borrowings 12 (2,821) (2,657) (481)
Lease liabilities (1,700) (1,681) (1,515)
Deferred tax liability (5,471) (7,309) ( 5 ,670)
Provisions (302) (314) (301)
------------ -------------------- -------------
(10,294) (11,961) ( 7 ,967)
------------ -------------------- -------------
Total liabilities (50,825) (45,597) (49,127)
------------ -------------------- -------------
Net assets 152,789 194,553 184, 157
============ ==================== =============
Equity
Share capital 154 154 154
Share premium 140,203 140,045 140,203
Other reserves 8,236 4,540 6,651
ESOP reserve (1,318) (1,318) (1,318)
Retained earnings 5,514 51,132 38,467
------------ -------------------- -------------
152,789 194,553 184, 157
============ ==================== =============
Consolidated Statement of Changes in Equity
Share Share Other Retained Total
Capital Premium Reserves ESOP Reserve earnings equity
-------- -------- --------- ------------ --------- ---------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance As at 1 January
2022 154 140,057 2,264 (1,318) 58,678 199,835
Loss after tax - - - - (7,546) (7,546)
Share issuance costs
finalisation - (12) - - - (12)
Share based payments - - 2,276 - - 2,276
-------- -------- --------- ------------ --------- ---------
Balance As at 30 June
2022 (unaudited) 154 140,045 4,540 (1,318) 51,132 194,553
-------- -------- --------- ------------ --------- ---------
Loss after tax - - - - (12,665) (12,665)
Issue of shares - 158 (158) - - -
Share-based payments - - 2,269 - - 2,269
-------- -------- --------- ------------ --------- ---------
Balance as at 31 December
2022 154 140,203 6,651 (1,318) 38,467 184, 157
-------- -------- --------- ------------ --------- ---------
Loss after tax - - - - (32, 953) (32, 953)
Share-based payments - - 1,585 - - 1,585
Balance as at 30
June 2023 (unaudited) 154 140,203 8,236 (1,318) 5,514 152,789
======== ======== ========= ============ ========= =========
Consolidated Statement of Cash Flow
Six months Six months
ended ended
30 June 30 June
2023 2022 Year ended
31 December
Notes (unaudited) (unaudited) 2022
----- ------------ ------------ ------------
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Operating loss (33,152) (7,469) (20,015)
Adjustment for non-cash
items:
Amortisation of intangible
assets 7 3,792 2,466 5,484
Depreciation of tangible
assets 8 656 534 1,123
Depreciation of right of
use assets 679 477 1,136
Tax (138) - (287)
Loss on impairment of intangible
assets 7 235 - 604
Loss on impairment of goodwill 7 18,645 - -
Loss on disposal of tangible
assets 8 - 4 4
Share based payment charges 1,683 2,276 4,545
------------ ------------ ------------
(7,600) (1,712) (7, 406 )
Changes in working capital
(Increase)/Decrease in inventories (670) 583 872
(Increase) in trade and
other receivables (1,689) (2,340) (2, 841 )
Increase/(Decrease) in trade
and other payables 971 (5,330) 246
Increase in provisions 25 148 162
------------ ------------ ------------
(1,363) (6,939) (1,561)
------------ ------------ ------------
Net cash flow (used in)
operating activities (8,963) (8,651) (8,967)
Cash flows from investing
activities
Purchase of tangible assets 8 (777) (1,270) (2,348)
Cost of intangible assets 7 (6,023) (4,485) (9,902)
Redemption of short-term
investments - 50,000 50,000
Interest received 542 75 458
------------ ------------ ------------
Net cash flow generated
from/(used in) investing
activities (6,258) 44,320 38,208
Cash flows from financing
activities
Proceeds from new borrowings 12 1,466 1,317 1,243
Loan repayment 12 (666) (351) (990)
Payment of principal of
lease liabilities (711) (509) (1,129)
Payment of lease interest (121) (76) (216)
Other Interest paid (84) (76) (158)
------------ ------------ ------------
Net cash flows generated
by financing activities (116) 305 (1,250)
Net increase/(decrease)
in cash and cash equivalents (15,337) 35,974 27,991
Cash and cash equivalents
at beginning of the period 74,103 46,112 46,112
Closing cash and cash equivalents 58,766 82,086 74,103
============ ============ ============
Consolidated Notes to the financial statements
1. General information
Pod Point Group Holdings plc (referred to as the "Company") is a
public limited company incorporated in the United Kingdom under the
Companies Act 2006 and registered in England. Its registration
number is 12431376. The registered address is 28-42 Banner Street,
London EC1Y 8QE.
The principal activity of the Company and its subsidiary
undertakings (the "Group") during the periods presented is that of
development and supply of equipment and systems for recharging
electric vehicles. The entire issued share capital of the Company
was admitted to trading on the Main Market of the London Stock
Exchange on 9 November 2021. All figures presented in this
unaudited preliminary announcement are in GBP sterling.
When considering the basis of Going Concern, the Directors have
made enquiries and reviewed cash flow forecasts and available
facilities for at least the next 12 months (including subsequent
events). Taking these into account the Directors have formed a
judgement, at the time of approving the unaudited preliminary
announcement, that there is a reasonable expectation that the Group
has adequate resources to continue in operational existence for the
foreseeable future. This judgement has been formed taking into
account the principal risks and uncertainties that the Group
faces.
2. Segment reporting
The Group has four operating and reportable segments which are
considered:
Reportable Segment Operations
------------------ -------------------------------------------------
Home Activities generated by the sale of charging
units to domestic customers for installation
in homes.
Commercial Activities generated by the sale and installation
of charging units in commercial settings,
such as the destination, workplace and en-route
routes to market.
Owned Assets Operating activities relating to customer
contracts, in which Pod Point owns the charging
point assets but charges end customers for
the use of these assets and, at some sites,
charges a fee for provision of media screens
on the units for advertising purposes.
Recurring Operating activities relating to the recurring
revenue generated on charging units, relating
to fees charged from the ongoing use of the
Pod Point software and information generated
from the management information system.
There are no transactions with a single external customer
amounting to 10 per cent. or more of the Group's revenues.
Work, destination and en-route revenues are routes to market
within the Commercial segment, rather than individual business
segments with the types of installations being similar in all
three.
Revenue has been further split into OZEV and non-OZEV revenues
for each segment. OZEV revenues are the portion of revenue
generated from an install, which are claimed from the DVLA by the
Group on behalf of customers who are eligible for the EVHS
government grant.
A breakdown of revenues and non-current assets by geographical
area is included in Note 3. Assets and liabilities are not reviewed
on a segmental basis and therefore have not been included in this
disclosure.
Segmental Analysis for the six months ended 30 June 2023
(unaudited):
UK UK Owned Total
Home Commercial Assets Recurring Group
------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------- ----------- ------- --------- --------
Revenue, non-OZEV 12,342 12,496 4,052 1,425 30,315
------- ----------- ------- --------- --------
OZEV revenue 73 226 - - 299
------- ----------- ------- --------- --------
Revenue 12,415 12,722 4,052 1,425 30,614
Cost of sales (8,989) (8,976) (2,869) (541) (21,375)
------- ----------- ------- --------- --------
Gross Margin 3,426 3,746 1,183 884 9,239
------- ----------- ------- --------- --------
Other income 600
------- ----------- ------- --------- --------
Administrative
Expenses (42,991)
------- ----------- ------- --------- --------
Operating Loss (33,152)
------- ----------- ------- --------- --------
Finance income 542
------- ----------- ------- --------- --------
Finance costs (205)
------- ----------- ------- --------- --------
Loss before
tax (32,815)
------- ----------- ------- --------- --------
Segmental Analysis for the six months ended 30 June 2022
(unaudited):
UK UK Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue, non-OZEV 20,817 11,728 1,489 760 34,794
-------- ----------- ------- --------- --------
OZEV revenue 6,402 356 - - 6,758
-------- ----------- ------- --------- --------
Revenue 27,219 12,084 1,489 760 41,552
Cost of sales (20,934) (9,308) (587) (335) (31,164)
-------- ----------- ------- --------- --------
Gross Margin... 6,285 2,776 902 425 10,388
-------- ----------- ------- --------- --------
Administrative
Expenses (17,857)
-------- ----------- ------- --------- --------
Operating Loss (7,469)
-------- ----------- ------- --------- --------
Finance income 75
-------- ----------- ------- --------- --------
Finance costs (152)
-------- ----------- ------- --------- --------
Loss before
tax (7,546)
-------- ----------- ------- --------- --------
Segmental Analysis for the year ended 31 December 2022:
UK UK Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue, non-OZEV 34,891 23,257 4,233 1,896 64, 277
-------- ----------- ------- --------- --------
OZEV revenue 6,495 637 - - 7,132
-------- ----------- ------- --------- --------
Revenue 41,386 23,894 4,233 1,896 71,409
Cost of sales (33,304) (18,721) (1,992) (803) (54,820)
-------- ----------- ------- --------- --------
Gross Margin... 8,082 5,173 2,241 1,093 16,589
-------- ----------- ------- --------- --------
Other income 1,461
-------- ----------- ------- --------- --------
Administrative
Expenses (38,065)
-------- ----------- ------- --------- --------
(20, 015
Operating Loss )
-------- ----------- ------- --------- --------
Finance income 457
-------- ----------- ------- --------- --------
Finance costs (366)
-------- ----------- ------- --------- --------
Loss before (19, 924
tax )
-------- ----------- ------- --------- --------
3. Revenue and non-current assets
Revenue, analysed geographically between markets, was as
follows:
Six months Six months
ended ended
30 June 30 June Year Ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
United Kingdom 30,592 41,463 71,277
Ireland 21 - -
Norway 1 89 132
------------ ------------ -------------
30,614 41,552 71,409
============ ============ =============
The geographical analysis of revenue and net revenue is on the
basis of the country of origin in which the client is invoiced.
Revenue, split between OZEV revenues and non-OZEV revenues was
as follows:
Six months Six months
ended ended
30 June 30 June Year Ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
Non-OZEV revenue 30,315 34,794 64,277
OZEV revenue 299 6,758 7,132
------------ ------------ -------------
30,614 41,552 71,409
============ ============ =============
All OZEV revenue was earned in the UK. Non-current assets are
all held within the UK for all periods presented.
Other income represents grant income relating to the R&D
expenditure credit for relief on the Group's research and
development costs.
4. Directors and employees
The table below presents the staff costs of these persons,
including those in respect of the Directors, recognised in the
income statement.
Six months Six months
ended ended
30 June 30 June Year Ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
Wages and salaries 15,956 9,602 20,699
Social security costs 1,843 1,086 3,118
Costs of defined contribution scheme 639 660 266
Net share-based payment expense 2,244 2,275 4,545
------------ ------------ -------------
20,682 13,623 28,628
============ ============ =============
Staff costs presented in this note reflect the total wage, tax
and pension cost relating to employees of the Group. These costs
are allocated between administrative expenses, cost of sales or
capitalised where appropriate as part of Software Development
intangible assets. The allocation between these areas is dependent
on the area of business the employee works in and the activities
they have undertaken.
During the 6 months ended 30 June 2023, GBP 4.2 million of staff
costs were capitalised (H1 2022: GBP2.8 million, year ended 31
December 2022: GBP6.7 million).
5. Restructuring costs
Restructuring costs, for the purposes of presenting non-IFRS
measure of adjusted EBITDA are as follows:
Six months Six months
ended ended
30 June 30 June Year Ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
Restructuring costs 359 - 57
------------ ------------ -------------
Restructuring costs in 2023 related to changes within the senior
management team. Restructuring costs in 2022 related to the closure
of the Norway branch.
6. Finance income and finance costs
Net financing costs comprise bank interest income and interest
expense on borrowings, and interest expense on lease
liabilities.
Six months Six months
ended ended
30 June 30 June Year Ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ --------------
GBP'000 GBP'000 GBP'000
Interest on bank deposits 542 75 457
------------ ------------ --------------
Finance Income 542 75 457
------------ ------------ --------------
Interest on loans and bonds (84) (92) (150)
Interest on lease liabilities (121) (60) (216)
------------ ------------ --------------
Finance Costs (205) (152) (366)
------------ ------------ --------------
Net finance income/(costs) recognised
in the income statement 337 (77) 91
============ ============ ==============
7. Intangible assets
Intangible assets as at 30 June 2023 (unaudited):
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2023 20,702 13,940 13,371 77,639 125,652
Additions 6,023 - - - 6,023
----------- ------- -------------- -------- -------
At 30 June 2023 26,725 13,940 13,371 77,639 131,675
----------- ------- -------------- -------- -------
Accumulated amortisation
and impairment:
At 1 January 2023 10,146 2,033 2,599 - 14,778
Amortisation 2,997 349 446 - 3,792
Impairment 235 - - 18,645 18,880
At 30 June 2023 13,378 2,382 3,045 18,645 37,450
----------- ------- -------------- -------- -------
Carrying amounts:
At 30 June 2023 13,347 11,558 10,326 58,994 94,225
=========== ======= ============== ======== =======
Intangible assets as at 30 June 2022 (unaudited):
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 10,800 13,940 13,371 77,639 115,750
Additions 4,485 - - - 4,485
At 30 June 2022 15,285 13,940 13,371 77,639 120,235
----------- ------- -------------- -------- -------
Accumulated amortisation:
At 1 January 2022 5,646 1,336 1,708 - 8,690
Amortisation 1,671 349 446 - 2,466
At 30 June 2022 7,317 1,685 2,154 - 11,156
----------- ------- -------------- -------- -------
Carrying amounts:
At 30 June 2022 7,968 12,255 11,217 77,639 109,079
=========== ======= ============== ======== =======
Intangible assets as at 31 December 2022:
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 10,800 13,940 13,371 77,639 115,750
Additions 9,902 - - - 9,902
----------- ------- -------------- -------- -------
At 31 December 2022 20,702 13,940 13,371 77,639 125,652
----------- ------- -------------- -------- -------
Accumulated amortisation
and impairment:
At 1 January 2022 5,646 1,336 1,708 - 8,690
Amortisation 3,896 697 891 - 5,484
Impairment 604 - - - 604
----------- ------- -------------- -------- -------
At 31 December 2022 10,146 2,033 2,599 - 14,778
----------- ------- -------------- -------- -------
Carrying amounts:
At 31 December 2022 10,556 11,907 10,772 77,639 110,874
=========== ======= ============== ======== =======
In accordance with the provisions of IAS36 'Impairment of
Assets' the allocation to the individual cash generating unit
("CGU") of the goodwill recognised on the purchase of PPH was
completed during the year ended 31st December 2021, being the end
of the first annual period beginning after the relevant acquisition
date of PPH by the Company. An impairment loss of GBP18.6m has been
recognised during H1 2023.
An impairment review has been performed comparing book values
(including goodwill) to value in use of the CGU at 30 June 2023.
The recoverable amount of the CGU was determined from value in use
calculations based on a discounted cash flow model. Key assumptions
in which management has based its determination of value in use
include the number of forecasted car registrations used to project
revenue growth and estimated market penetration for the home and
commercial markets. Car registration forecasts are based upon
external data from the Society of Motor Manufacturers and Traders
("SMMT") and the Government ban on new internal combustion cars
from 2030, while market share assumptions are determined using
historical data and experience.
Management projected cash flows to 2030, a period longer than 5
years. This was considered appropriate as it represents the period
to the Government's committed date of the ban on the sale of new
petrol and diesel cars. A weighted average cost of capital (WACC)
of 13% has been applied.
Given decreases in home market penetration in H1 2023 and other
macro-economic factors, sensitivities have been performed around
home and commercial penetration, sales price and overheads
inflation which resulted in the carrying value exceeding the value
in use by GBP18.6m and therefore an impairment loss has been
recognised. No other reasonably possible changes in assumptions
would cause the carrying amount to further exceed the recoverable
amount.
8. Property, Plant and Equipment
Property Plant and Equipment as at 30 June 2023 (unaudited):
Other Property,
Plant and Owned
Equipment Assets Total
--------------- ------- -------
GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2023 1,659 6,496 8,155
Additions 183 594 777
At 30 June 2023 1,842 7,090 8,932
--------------- ------- -------
Accumulated depreciation:
At 1 January 2023 1,081 1,576 2,657
Depreciation 178 478 656
At 30 June 2023 1,259 2,054 3,313
--------------- ------- -------
Carrying amounts:
At 30 June 2023 583 5,036 5,619
=============== ======= =======
Property Plant and Equipment as at 30 June 2022 (unaudited):
Other Property,
Plant and Owned
Equipment Assets Total
--------------- ------- -------
GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 1,116 4,698 5,814
Additions 395 875 1,270
Disposals - (7) (7)
--------------- ------- -------
At 30 June 2022 1,511 5,566 7,077
--------------- ------- -------
Accumulated depreciation:
At 1 January 2022 756 781 1,537
Depreciation 154 380 534
Disposals - (3) (3)
--------------- ------- -------
At 30 June 2022 910 1,158 2,068
--------------- ------- -------
Carrying amounts:
At 30 June 2022 601 4,408 5,009
=============== ======= =======
Property Plant and Equipment as at 31 December 2022:
Other Property,
Plant and Owned
Equipment Assets Total
--------------- ------- -------
GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 1,116 4,698 5,814
Additions 543 1,805 2,348
Disposals - (7) (7)
--------------- ------- -------
At 31 December 2022 1,659 6,496 8,155
--------------- ------- -------
Accumulated depreciation:
At 1 January 2022 756 781 1,537
Depreciation 325 798 1,123
Disposals - (3) (3)
--------------- ------- -------
At 31 December 2022 1,081 1,576 2,657
--------------- ------- -------
Carrying amounts:
At 31 December 2022 578 4,920 5,498
=============== ======= =======
9. Inventories
As at As at
30 June 30 June As at
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
Finished goods 6,733 5,127 5,523
Work in progress 1,279 2,504 1,819
------------ ------------ -------------
8,012 7,631 7,342
============ ============ =============
The cost of inventories recognised as an expense during H1 2023
in respect of continuing operations was GBP10.1m (H1 2022: GBP15.8
million, year ended 31 December 2022: GBP28.8m).
Included within work in progress is hardware purchased for
installation in progress but not yet complete, time spent on
installations in progress but not yet complete and invoices
received against installations in progress but not yet
complete.
10. Trade and other receivables
As at As at
30 June 30 June As at
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
Trade receivables 18,293 17,691 18,841
Loss allowance (912) (369) (507)
------------ ------------ -------------
17,381 17,322 18,334
------------ ------------ -------------
Other receivables 1,818 447 940
R&D tax credit receivable 1,090 - 1,174
Prepayments and accrued income 8,283 8,612 6,434
------------ ------------ -------------
28,572 26,381 26,882
============ ============ =============
11. Trade and other payables
As at As at
30 June 30 June As at
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
Trade payables 6,513 7,099 9,096
Other taxation and social security 1,575 2,212 3,098
Accruals and deferred revenue 24,320 20,012 21,163
Other payables 5,096 1,520 3,062
------------ ------------ -------------
37,504 30,843 36,419
============ ============ =============
There is no material difference between the carrying value and
fair value of trade and other payables presented.
12. Loans and borrowings
As at As at
30 June 30 June As at
2023 2022 31 December
(unaudited
(unaudited) ) 2022
------------ ----------- -------------
GBP'000 GBP'000
Current liabilities
Secured bank loan 1,271 1,343 2,842
Non-current liabilities
Secured bank loan 2,821 2,657 481
------------ ----------- -------------
Total loans and borrowings 4,092 4,000 3,323
============ =========== =============
During the 11 months ended 31 December 2020, the Group entered
into GBP3.5 million facility agreement with Triodos Bank UK Limited
for a period of 5 years, to fund charging units owned by the Group
and installed at customer sites. The facility is structured as a
construction facility while the assets are being installed, at
which point the outstanding balance will become an operating
facility. The interest rate is fixed at 3.5 per cent. The loan is
repayable in eighteen quarterly instalments starting one quarter
after the start of the operating facility.
An additional loan was entered into with Triodos Bank UK Limited
during the year ended 31 December 2022, for GBP1.25 million under
the same facility agreement. The interest rate is fixed at 4.969
per cent. The loan is repayable in eighteen quarterly instalments
starting from the first payment date.
No changes in liabilities arising from financing activities has
been identified during the period ended 30 June 2023 or are
expected in the near future
13. Financial Instruments
The Group had the following financial assets and liabilities.
The amounts below are contractual undiscounted cash flows and
include both interest and principal amounts.
Categorisation within the hierarchy, measured or disclosed at
fair value, has been determined based on the lowest level of input
that is significant to the fair value measurement as follows:
-- Level 1 - valued using quoted prices in active markets for identical assets or liabilities
-- Level 2 - valued by reference to valuation techniques using
observable inputs other than quoted prices included within Level
1
-- Level 3 - valued by reference to valuation techniques using
inputs that are not based on observable market data
As at As at
30 June 30 June As at
2023 2022 31 December
(unaudited
(unaudited) ) 2022
------------ ----------- -------------
GBP'000 GBP'000 GBP'000
Cash and cash equivalents 58,766 82,086 74,103
Trade and other receivables 19,199 17,769 19,274
Accrued Income 6,740 7,345 5,195
Total financial assets 84,705 107,200 98,572
------------ ----------- -------------
Trade and other payables 11,609 8,619 12,158
Accruals 11,081 9,076 9,210
Leases 3,166 2,893 3,149
Loans and borrowings 4,092 4,000 3,323
------------ ----------- -------------
Total financial liabilities 29,948 24,588 27,840
------------ ----------- -------------
All financial assets and financial liabilities shown above, and
loans and borrowings, are valued at carrying amount or at fair
value using Level 2 measurements. There have been no transfers
between levels in any of the years.
Financial assets
The Group classifies its financial assets into the following
categories: cash and cash equivalents, trade and other receivables
and accrued income. The classification depends on the purpose for
which the assets are held. The classification is first performed at
initial recognition and then re-evaluated at every reporting date
for financial assets other than those held at fair value through
the income statement.
Financial liabilities
The Group classifies its financial liabilities into the
following categories: trade and other payables, loans and
borrowings and other non-current liabilities.
The Directors consider that the carrying amount for all
financial assets and liabilities which are not held at fair value
through profit or loss approximates to their fair value.
14. Share based payments
Charge to the income statement:
The charge to the income statement is set out below:
Six months Six months
ended ended
30 June 30 June Year ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------ ------------ -------------
GBP'000 GBP'000 GBP'000
IPO restricted share award 448 1,457 2,238
IPO performance share award 392 468 759
Share incentive plan 191 179 360
Long-term incentive plan 553 474 611
Deferred share bonus plan 392 - 577
------------ ------------ -------------
Total share-based payment expense 1,976 2,578 4,545
============ ============ =============
National insurance on share based payment awards of GBP0.3
million (H1 2022: GBP0.3 million, year ended 31 December 2022:
GBP0.6 million) has also been charged to the income statement.
15 . Loss per share
Basic earnings per share is calculated by dividing the loss
attributable to the equity holders of the Group by the weighted
average number of shares in issue during the year.
The group has dilutive ordinary shares for H1 2023, H1 2022 and
the year ended 31 December 2022, these being share options granted
to employees. As the Group has incurred a loss in all periods, the
diluted loss per share is the same as the basic earnings per share
as the loss has an anti-dilutive effect.
Six months Six months
ended ended
30 June 30 June Year ended
2023 2022 31 December
(unaudited) (unaudited) 2022
------------- ------------ -------------
GBP GBP GBP
Loss for the period attributable
to equity holders 32,952,930 7,546,564 20,211,814
Basic and diluted weighted average
number of shares in issue 153,473,724 153,403,537 153,405,628
------------- ------------ -------------
Earnings/(Loss) per share (Basic
and Diluted) (0.22) (0.05) (0.13)
============= ============ =============
16. Related Parties
Transactions with Shareholders
During the six months ended 30 June 2023, the Group had the
following transactions with group companies part of the EDF Group
(unaudited):
Purchase of
Sales of goods goods
Group Company 'GBP000 'GBP000
----------------------------- --------------- -----------
EDF Energy Limited 138 -
EDF Energy Customers Limited - 143
During the six months ended 30 June 2022, the Group had the
following transactions with group companies part of the EDF Group
(unaudited):
Purchase of
Sales of goods goods
Group Company 'GBP000 'GBP000
----------------------------- -------------- -----------
EDF Energy Limited 43 -
EDF Energy Customers Limited - 273
During the year ending 31 December 2022, the Group had the
following transactions with group companies part of the EDF
Group:
Purchase of
Sales of goods goods
Group Company 'GBP000 'GBP000
----------------------------- -------------- -----------
EDF Energy Limited 335 -
EDF Energy Customers Limited - 390
Transactions with related parties who are not members of the
Group
During the H1 2023, the Group had the following transactions
with a related party who is not a member of the Group. Imtech
Inviron Limited is a related party by virtue of their ultimate
parent and controlling party being Électricité de France S.A. (see
note 18):
-- Sale of goods of GBP0.2 million (H1 2022: GBP0.1 million,
year ended 31 December 2022: GBP0.2 million)
17 . Post balance sheet events
On 6 July 2023, Erik Fairbairn stepped down as Chief Executive
Officer ("CEO"). Andy Palmer, who at the time was acting as Senior
Independent Director of the Group, has been appointed as interim
CEO.
18 . Ultimate parent undertaking and controlling party
The immediate parent company of the Company and its subsidiaries
is EDF Energy Customers Limited, a company registered in the United
Kingdom.
The immediate parent company of EDF Energy Customers Limited is
EDF Energy Limited, a company registered in the United Kingdom.
In all periods presented, Électricité de France SA, a company
incorporated in France, is regarded by the Directors as the
Company's ultimate parent company and controlling party. This is
the largest group for which consolidated financial statements are
prepared. Copies of that company's consolidated financial
statements may be obtained from the registered office at
Électricité de France SA, 22-30 Avenue de Wagram, 75382, Paris,
Cedex 08, France.
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END
IR BCGDRDXXDGXG
(END) Dow Jones Newswires
July 31, 2023 02:00 ET (06:00 GMT)
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