TIDMDCTA
RNS Number : 2966N
Directa Plus PLC
29 September 2021
29 September 2021
Directa Plus plc
("Directa Plus" or the "Company" or, together with its
subsidiaries, the "Group")
Half Year Report
Strong Growth Continues
Directa Plus (AIM: DCTA), a leading producer and supplier of
graphene-based products for use in consumer and industrial markets,
is pleased to announce its half year results for the six months
ended 30 June 2021.
During the period the Group delivered the best results in its
history and maintained its focus on developing and delivering
products and services in the Environmental Remediation and Textile
verticals. In addition, the Company continued to deliver graphene
enhancements to products in other areas where Directa Plus has
identified significant potential commercial opportunities, such as
Lithium-Sulphur batteries and composites.
Financial Highlights
-- Revenue increased by +41% to EUR3.95m (1H2020: EUR2.81m)
-- Total income increased by +60% to EUR4.56m (1H2020: EUR2.86m)
-- EBITDA loss* reduced by -70% to EUR0.44m (1H2020: EBITDA loss of EUR1.47m)
-- Loss after tax of EUR1.20m reduced by -51% (1H2020: loss of EUR2.45m)
-- Cash at period end EUR5.19m (FY2020: EUR7.08m), in-line with management expectations
* EBITDA loss represents results from operating activities
before tax, interest, depreciation and amortisation.
Commercial Highlights
Environmental remediation (75% of period revenue (1H2020:
77%))
-- Significant progress has been achieved in environmental
remediation: Setcar has developed business opportunities with large
industry partners and Directa Plus' Grafysorber(R) technology is
rapidly gaining traction in the Oil & Gas industry.
-- The first extension of Directa Plus' contract with OMV Petrom
for the provision of decontamination and oil recovery services
using the Company's proprietary Grafysorber(R) technology has been
completed. The parties agreed a c. EUR410,000 contract for a
six-month services period.
-- An additional tender has now been won and a further extension
of the contract with OMV Petrom has been agreed, post period end in
July 2021, with a four-year contract for a total value of c.
EUR3.2m.
-- Initial collaboration has commenced with REDA Oilfield UK for
the production and distribution of Grafysorber(R) based
products.
Textiles (24% of period revenue (1H2020: 19%))
-- Strong progress has been achieved in the G+ filter
applications highlighting the positive impact in face mask
efficacy. The publication of a scientific paper by iScience,
provided positive evidence for G+(R) filter fabric treated with PU
G.
-- Directa Plus launched its own showcase brand line of
performance sportswear (Cosmic Collection), including polo shirts
and softshell jackets.
-- Ongoing technical and commercial collaborations with main
partners active on the market: workwear, denim, sport and luxury
goods.
Other verticals
-- NexTech collaboration continues to deliver results. The
Company signed a three-year partnership supply agreement and a
joint R&D collaboration for the supply and development of new
grades of G+ graphene nanoplatelets for the production of Lithium
Sulphur batteries and supported the establishment of the European
subsidiary of NexTech in Italy.
-- Continued progress following the agreement with a major
international developer and manufacturer of consumer electronics
for the potential application of G+(R) graphene on covering
materials of consumer devices, exploiting the
antiviral-antibacterial properties of G+(R) graphene as well as its
thermal and electrical conductivity and new interesting properties
(sensor applications).
-- Further commercial traction for Gipave(R), a graphene
enhanced asphalt developed in conjunction with Iterchimica, with
two further commercial trials in Oxfordshire in UK and in Sardinia
in Italy.
-- Further progress with Italdesign, part of Volkswagen AG, to
jointly develop a wide range of automotive components enhanced by
Directa Plus' graphene expertise.
Substantial technology and IP portfolio
-- Directa Plus' current patent portfolio now comprises 65
granted patents plus 27 patents pending, grouped into 18 families,
4 covering G+ production and 14 covering G+(R) products and
applications.
-- In January 2021, Directa Plus received Notices of Allowance
in respect of four patents, ahead of the formal grant.
-- In March 2021, Directa Plus was granted an EU-wide patent
covering the use of its G+(R) graphene in golf ball
applications.
-- In May 2021, Directa Plus was granted an EU-wide patent
covering the use of Directa Plus' unique water-based exfoliation
technology for converting super-expanded graphite to pristine
graphene nanoplatelets using no chemicals and completed with a very
high conversion yield.
Outlook
-- Working with leading global companies to develop and bring to
market world class products is at the heart of what Directa Plus
does. More leading partners are willing to collaborate with Directa
Plus every year, and the market is gradually recognising the great
potential of the patented technologies. The Board considers the
Group to be in a good position to grow and invest further.
Giulio Cesareo, Founder & CEO of Directa Plus, said:
"I am delighted to report that the first six months of 2021
showed exceptional results, the best in the Company's history. The
much improved financial figures are tangible proof of the progress
the Group is making in terms of market penetration, increasing
collaborations and the strengthening of the awareness and adoption
of Directa Plus's technology. A special thanks to all the staff who
have delivered this result against the very difficult backdrop of
the Covid pandemic.
"The Group is also growing and developing as an organisation, in
terms of new people, machinery and tools. We are implementing a new
and advanced administrative tool that will enable us to better
assess business performance and support strategic decision making
going forward.
"The Group is at an inflection point. We are working with
leading global companies to develop and bring to market, best in
class products. As we gain recognition in the market, we see
increased numbers of businesses wanting to partner with Directa
Plus and as result, the Board is hugely encouraged by the
opportunity in front of us. Directa Plus is in a strong position to
grow and we look forward to the rest of the year and beyond with
confidence."
For further information please visit
http://www.directa-plus.com/ or contact:
Directa Plus plc +39 02 36714458
Giulio Cesareo, CEO
Giorgio Bonfanti, CFO
Cenkos Securities plc (Nomad & Joint Broker) +44 131 220 6939
Neil McDonald
Pete Lynch
Singer Capital Markets (Joint Broker) +44 20 7496 3069
Rick Thompson
Phil Davies
Tavistock (Financial PR and IR) +44 20 7920 3150
Simon Hudson
Heather Armstrong
Review of Operations
Environmental
The Setcar acquisition, signed in November 2019, is delivering
the returns expected by management, in terms of business
development and financial contribution to the Group. The Romanian
subsidiary is contributing to the expansion of Directa Plus'
Grafysorber(R) technology into new markets, which is rapidly
gaining adoption in the Oil & Gas industry as a step change
improvement from existing water treatment products and services.
Reusable and sustainably produced Grafysorber(R) is five times more
effective at hydrocarbon clean-up than competitor products and
allows for the recovery of financially valuable oils and sludges.
In addition, Grafysorber(R) is sustainably produced, non-flammable
and reusable, with the adsorbed hydrocarbons recoverable.
In January 2021, Directa Plus had its contract with OMV Petrom
extended and increased. Initially awarded in July 2019, the
contract was for the provision of decontamination and oil recovery
services using the Company's proprietary Grafysorber(R) technology.
The initial value of the contract was EUR150,000 and this was
increased up to EUR410,000 for a six-month services period.
Post period end, in July 2021, Directa Plus won an additional
tender with OMV Petrom for a four-year contract with a total value
of more than EUR3.2m. It is expected that approximately 80,000
cubic meters of sludge and waste produced during the first upstream
separation process will be treated and that up to 20,000 tons of
crude oil with impurities below 1% will be recovered and sent to
the refinery. In addition, it is expected that some 50,000 cubic
meters of produced water will be treated over the same period using
dedicated engineering equipment, increasing water injection quality
while meeting national regulations to minimise the use of water
resources. Directa Plus will supply a total of 700 high-performance
adsorbent devices containing Grafysorber(R) to OMV Petrom to
insulate, clean and eliminate any accidental oil spills during the
workover and intervention operations, mitigating any environmental
impact.
In May 2021, Directa Plus initiated a collaboration with Reda
Oilfield UK ("Reda"), a leading provider of chemicals products and
associated services to the Oil & Gas industry. Reda tested and
validated Directa Plus' Grafysorber(R) technology and has been
impressed with the enhanced performances of the products. The
parties are currently defining the terms for future collaborations
in the productions and distribution of Grafysorber(R) based
products.
Textiles
In 2020, the Covid-19 pandemic led Directa Plus to rapidly
respond to the global crisis by developing the Co-mask(TM), a
product to alleviate the effects of the pandemic by helping to
reduce transmission of the virus. The development and
commercialisation of the Co-mask(TM) accelerated studies around the
filter applications of G+(R) technology, which is proven to have
anti-viral properties, is non-toxic and has no negative impacts on
human skin.
In March 2021, Directa Plus announced a further test result
relating to the absence of absorption of its pristine graphene
nanoplatelets powder (Pure G+(R)) through human skin. A total of
eight in vitro test results now show that Pure G+(R) has no
potential negative impact on human health.
In April 2021, the new G+(R) graphene coating for fabrics was
tested by an independent third-party laboratory and found to be
suitable for human skin contact. The results showed zero erythema
and oedema reactions across all subjects participating in the test
and the G+(R) coated fabric was reported to be 'dermatologically
tested' and non-irritating.
Post period end, in July 2021, the peer-reviewed
interdisciplinary open-access journal iScience published a
scientific paper titled "Graphene Nanoplatelet and Graphene Oxide
Functionalization of Face Mask Materials Inhibits Infectivity of
Trapped SARS-CoV-2". The paper provides scientific evidence that
the Company's G+(R) graphene nanomaterials and those from graphene
oxide present a critical opportunity to significantly increase face
mask efficacy. In relation to the anti-SARS CoV2 capability of
Directa Plus' G+(R) graphene, the paper certifies that G+(R) filter
fabric treated with PU G+(R) can inactivate 97% of the virus while
G+(R) cotton can inactivate 99% of the virus.
The antibacterial and antiviral properties of the Company's
G+(R) pristine graphene nanoplatelets represent significant
opportunities for Directa Plus in textile and biomedical
applications. The efficacy of G+(R) and its non-toxic and
sustainable production characteristics overcome the problems of the
current state-of-the-art solutions that are based on metal-ion or
halogen treatments, which could be dangerous to human health and
detrimental to the environment. The Group continues to
commercialise current products and is exploring new
applications.
Additionally, in the first half of 2021 Directa Plus launched
its own line of performance sportswear: the Cosmic Collection. This
collection aims to offer customers an innovative experience of an
advanced technology, which is also sustainable. The Cosmic
Collection is a showcase of the incredible versatility of Graphene
Plus and its applications and will contribute to increasing the
awareness of the Company and its technologies.
Finally, in April 2021 the Group announced further positive
advances in its research into printing graphene-based inks onto
textiles. For two years, Directa Plus has been working with an
international textile group to develop a new G+ graphene printing
technique for the textile market and for the first time a G+
graphene-based ink, which uses a specific grade of graphene
developed for the purpose which has been digitally jetted. Though
only a preliminary result, it proves the feasibility of the
technology and is an important milestone for the Company's product
development strategy in the textile vertical.
Post period end, in July 2021 members of the Dutch and Belgian
cycling teams won four medals at the Tokyo Olympics (one gold, two
silver and one bronze) in the road race event wearing a shirt
printed with Directa Plus's patented and proprietary technology,
the Thermal Planar Circuit(R). The shirts for the national cycling
teams at the Games were made by premium cycling brand, Bioracer,
using fabric supplied by Italian company, Taiana, with the unique
and high-performance print made using Directa Plus's sustainable
graphene. This is an additional illustration of how the Company's
G+(R) graphene supports the natural thermoregulation of the body,
providing athletes with a competitive advantage.
Additional industrial verticals
Composites
The asphalt applications of Directa Plus's G+ graphene
technology is providing promising results, and the interest in the
market for the product is growing internationally. The Company has
signed a three-year agreement with Iterchimica for the exclusive
supply of G+ graphene products for the asphalt and bitumen sector
worldwide and have extended the partnership with a significant
pipeline of opportunities. Iterchimica has identified 20 key
partners and 88 potential customers worldwide to continue the
Group's growth in revenue from this sector.
Lithium-Sulphur Batteries
Lithium-Sulphur is a next generation battery chemistry offering
advantages over Lithium-Ion as it has a superior energy density,
significant cost advantages and a superior safety profile. Our
collaboration with NexTech, a leading company in the field of
Lithium Sulphur batteries based in Nevada, USA, is making strong
progress.
In November 2020, a memorandum of understanding was signed with
NexTech. In February 2021, both parties agreed to form a stronger
partnership, with a three-year supply agreement for the provision
of a specific grade of G+(R) pristine graphene nanoplatelets and a
joint R&D collaboration to develop new specific grades of
nanoplatelets. A joint laboratory has been established in Lomazzo,
where Directa Plus is located and both parties will dedicate
selected scientists from their respective R&D teams.
In June 2021, NexTech established its European subsidiary in
Italy ("NexTech Italia SpA"), temporarily located within Directa
Plus' facilities in Lomazzo, with the initial objective being to
evaluate the feasibility of producing cathode active materials in
Italy, using Directa Plus' G+(R) graphene nanoplatelets, for the
manufacture of Lithium-Sulphur (Li-S) batteries throughout Europe,
to accelerate the technology's commercialisation.
Consumer Electronics
In December 2020, Directa Plus signed a development agreement
with the soft goods division of a major international developer and
manufacturer of consumer electronics and related services. The
agreement covers the potential application of G+(R) graphene as a
protective covering for consumer devices, exploiting the
antiviral-antibacterial properties of G+(R) graphene as well as its
thermal and electrical conductivity. The partnership is already
delivering results and is progressing in the desired direction.
Automotive
Directa Plus continues to invest in the technical and commercial
agreement with Italdesign, part of Volkswagen AG, a global leader
in automotive design and engineering. The agreement will allow
Directa Plus and Italdesign to jointly develop a wide range of
automotive components enhanced by the Company's graphene
expertise.
Other areas
The Company continues to pursue additional opportunities in new
growth verticals including energy storage, golf balls, paints, and
cements. The Company is also exploring the application potential
within the rubber and tyres, plastic and non-woven materials
industries.
In February 2021, research undertaken by scientists at the
Polytechnic of Turin was published in an article in the journal
Polymers showing that the use of water-based G+ graphene ink to
coat polymeric foam confers significant flame-retardant properties
versus untreated polymeric foam. A simple application of G+ ink to
the external faces of the foam provided good flame-retardant
properties, tested in both horizontal and vertical planes.
Polymeric foams are used in many applications from roof insulation
to furniture and are extremely flammable meaning that the potential
market for G+ fire retardant technology is sizeable.
In March 2021, Directa Plus was granted an EU-wide patent
covering the use of its G+(R) graphene in golf ball applications.
The patent covers a family of formulations and compounds containing
G+(R) graphene nanoplatelets. Using these compounds at different
loadings provides the basis for developing a new generation of
high-performance golf balls aimed at both the professional and
recreational markets. For professionals, G+(R) can be used to
enhance the hardness of the core of golf balls to maximise shot
distance, without losing lateral control. For amateurs, a different
formulation of G+(R) can be used to increase distance while at the
same time maximising control.
Intellectual Property
As of September 2021, the Group's current patent portfolio is
comprised of 65 patents granted plus 27 patents pending.
In January 2021, Directa Plus received Notices of Allowance in
respect of four patents, ahead of the formal grant:
-- a US patent for the Group's Graysorber(R) environmental remediation technology;
-- an EU patent for the Group's sustainable, chemical-free G+ production process;
-- a US patent for the use of G+(R) graphene supermodifier to
improve the performance of elastomers, specifically tyres; and
-- an EU patent covering the same use of G+(R) supermodifier in tyres.
In March 2021, Directa Plus was granted an EU-wide patent
covering the use of its G+(R) graphene in golf ball
applications.
In May 2021, Directa Plus was granted an EU-wide patent covering
the production process for its G+(R) graphene nanoplatelets. The
patent, titled 'Process for Preparing Graphene Nanoplatelets'
covers the use of Directa Plus' unique water-based exfoliation
technology for converting super-expanded graphite to pristine
graphene nanoplatelets using no chemicals and with a very high
conversion yield.
The Company is examining ways to realise the significant value
of its patents in the market, exploring potential license
opportunities or royalty models that could be the most effective
models for the Company at this stage.
Financial
The Group's interim financials as of 30 June 2021 are the
results of a rapid and continuous growth of Directa Plus' business.
During the first six months of the year, Total Revenues increased
by +41% compared to the first half of 2020, reaching EUR3.95m. The
increase was driven by all the main verticals. The Environmental
vertical, whereby Setcar is delivering excellent results to the
Group, is still playing a key role (EUR2.952m, +35% vs 1H20), while
the Textiles vertical increased its revenues by +72%, reaching
EUR940k.
Total Income was EUR4.56m, an increase of 60% compared to the
previous year. It is worth noting that this result was positively
impacted by EUR0.5m of one-off income from Setcar as a result of
the release of an undue obligation.
EBITDA loss showed a significant reduction (-70%) compared to
the previous year, reaching -EUR0.44m (-EUR1.47m in 1H20). The
improvement was mainly driven by a EUR1.01m positive EBITDA
contribution from Setcar. The Net Loss for the year was -EUR1.20m,
an improvement by 51% compared to the first half of last year
(-EUR2.45m).
As of 30 June 2021, Cash was EUR5.19m (EUR7.08m as of 31
December 2020). In June 2021 the Group raised a EUR0.5m bank loan
under the Italian Government's Covid-19 Recovery Plan. Directa Plus
took advantage of the low-cost liquidity offered in order to secure
additional funding and accelerate its strategic programme. The
Directors are satisfied that the Group has adequate resources to
continue in operational existence for at least 12 months from
approving these interim financial statements.
Outlook
In the first six months of 2021 Directa Plus achieved the best
results in the Company's history. The Group is managing to
progressively increase the awareness of its unique technologies in
the market and advance commercialisation. The interim results are a
substantiation of the developments of Directa Plus with an increase
of 41% in total revenue and a significant 70% reduction in the
EBITDA loss compared to the first half of 2020.
Setcar is contributing to the Group and to the environment
vertical with great results. Setcar is increasing its business
rapidly, the technology is well recognised on the market, and we
expect further successes going forward. The tender win in July 2021
with OMV Petrom for a EUR3.2m four-year contract is expected to be
the beginning of additional collaborations in the near future. The
combination of Directa Plus's technology Grafysorber(R) alongside
the market penetration and expertise of our Romanian subsidiary is
a perfect match.
The textile vertical is growing fast. The Group is expanding its
collaborations with important commercial partners, and it is
exploring new applications on filters (with antibacterial and
antiviral properties), flame retardants and ink-printing that will
increase the potential range of applications.
Other verticals continue to look promising. The collaboration
with NexTech is progressing well, and the establishment of
NexTech's European subsidiary in Italy is a tangible signal that
the parties are accelerating the technology's commercialisation.
Furthermore, the collaboration with Iterchimica in the asphalt
sector is gaining further commercial traction and we are achieving
positive results from the tests with a major manufacturer of
consumer electronics.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2021
In euro Note (Unaudited) (Unaudited) Audited
6 months 6 months 12 months
ended ended ended
30 Jun 30 Jun 31 Dec
2021 2020 2020
------------ ------------ ------------
Continuing operations
Revenue 3,950,559 2,807,066 6,434,480
Other income 613,651 53,462 345,826
Changes in inventories of finished
goods and work in progress 293,498 (68,693) 213,229
Raw materials and consumables used (1,300,320) (682,321) (2,564,317)
Employee benefits expenses (1,996,322) (1,651,111) (3,769,274)
Depreciation and amortisation (775,393) (702,406) (1,690,872)
Other expenses (2,002,230) (1,929,054) (3,279,927)
Results from operating activities (1,216,557) (2,173,057) (4,310,855)
------------ ------------ ------------
Finance expenses income (expenses) 128,918 (312,843) (346,532)
Net finance costs 128,918 (312,843) (346,532)
------------ ------------ ------------
Loss before tax (1,087,639) (2,485,900) (4,657,387)
------------ ------------ ------------
Tax expense (116,640) 36,260 124,414
Loss after tax (1,204,279) (2,449,640) (4,532,973)
------------ ------------ ------------
Loss from continuing operations (1,204,279) (2,449,640) (4,532,973)
Loss of the period (1,204,279) (2,449,640) (4,532,973)
------------ ------------ ------------
Other Comprehensive income items
that will not be reclassified to
profit or loss
Defined Benefit Plan remeasurement
gains and losses (6,917) 7,965 7,821
Other comprehensive income for the
year (net of tax) (6,917) 7,965 7,821
Total comprehensive income for the
year (1,211,196) (2,441,675) (4,525,152)
Loss attributable to
Owner of the Parent (1,479,086) (2,321,885) (4,195,011)
Non-controlling interests 274,807 (127,755) (337,962)
(1,204,279) (2,449,640) (4,532,973)
------------ ------------ ------------
Total Comprehensive (expenses)/
income attributable to
Owner of the Parent (1,486,003) (2,313,920) (4,187,190)
Non-controlling interests 274,807 (127,755) 337,962
(1,211,196) (2,441,675) (4,525,152)
------------ ------------ ------------
Loss per share
Basic loss per share 2 (0.02) (0.04) (0.07)
Diluted loss per share 2 (0.02) (0.04) (0.07)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
In euro Note (Unaudited) (Unaudited) Audited
30 Jun 30 Jun 31 Dec
2021 2020 2020
------------- ------------- -------------
Assets
Intangible assets 1,907,600 2,053,432 2,042,767
Property, plant and equipment 4,187,504 4,338,078 4,209,267
Trade and other receivables 135,036 112,306 140,649
Deferred tax assets - - -
Non-current assets 6,230,140 6,503,816 6,392,683
------------- ------------- -------------
Inventories 1,657,947 1,022,425 1,375,947
Trade and other receivables 2,621,172 2,446,221 2,857,460
Cash and cash equivalent 5,191,533 7,491,014 7,080,492
Current assets 9,470,652 10,959,660 11,313,899
------------- ------------- -------------
Total assets 15,700,792 17,463,476 17,706,582
------------- ------------- -------------
Equity
Share capital 191,531 190,996 190,996
Share premium 31,395,612 31,395,612 31,395,612
Retained Earnings (23,264,042) (19,977,696) (21,831,244)
Equity attributable to owners of
Group 8,323,101 11,608,912 9,755,364
Non-controlling interest 2,101,286 1,122,735 906,885
Total equity 10,424,387 12,731,647 10,662,249
------------- ------------- -------------
Liabilities
Loans and borrowings 1,890,196 - 1,017,716
Lease liabilities 462,192 376,495 627,138
Employee benefits 474,274 426,683 444,483
Other payables 64,636 65,763 65,397
Deferred tax liabilities 114,022 97,065 8,423
Non-current liabilities 3,005,320 966,006 2,163,157
------------- ------------- -------------
Loans and borrowing 26,722 1,131,901 981,065
Lease liabilities 276,987 161,421 214,935
Trade payables and other payables 1,967,376 2,472,501 3,685,176
Current liabilities 2,271,085 3,765,823 4,881,176
------------- ------------- -------------
Total liabilities 5,276,405 4,731,829 7,044,333
------------- ------------- -------------
Total equity and liabilities 15,700,792 17,463,476 17,706,582
------------- ------------- -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2021
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
============================= =========== ================== ============ ========================== ============
Share Share Retained Earnings Total Non-controlling Total
In euro Capital premium interests Equity
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Balance at 31
December 2019 190,512 31,395,612 (17,652,178) 13,933,946 1,240,194 15,174,140
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Total
comprehensive
(expense)/income
for the period
Loss of the Period - - (2,321,885) (2,321,885) (127,755) (2,449,640)
Total other
comprehensive
(expense)/income - - 7,965 7,965 - 7,965
Total
comprehensive
(expense)/income
for the period (2,313,920) (2,313,920) (127,755) (2,441,675)
Capital raised 484 - - 484 - 484
Translation
reserve - - (11,598) (11,598) - (11,598)
Acquisition of
Directa textile
Solutions
non-controlling
interest - - - - 10,296 10,296
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Balance at 30 June
2020 190,996 31,395,612 (19,977,694) 11,608,912 1,122,735 12,731,647
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Total
comprehensive
(expense)/income
for the period
Loss of the Period - - (1,881,091) (1,881,091) (200,900) (2,081,991)
Total other
comprehensive
(expense)/income - - 7,821 7,821 - 7,821
Total
comprehensive
(expense)/income
for the period - - (1,873,270) (1,873,270) (200,900) (2,074,170)
Capital raised - - - - - -
Translation
reserve - - 435 435 - 435
Change of Directa
Textile Solutions
non-controlling
interest - - - - (14,949) (14,949)
Share based
payment reserve - - 19,285 19,285 - 19,286
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Balance at 31
December 2020 190,996 31,395,612 (21,831,244) 9,755,364 906,885 10,662,249
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Total
comprehensive
(expense)/income
for the period
Loss of the Period - - (1,479,086) (1,479,086) 274,807 (1,204,279)
Total other
comprehensive
(expense)/income - - (6,917) (6,917) - (6,917)
Total
comprehensive
(expense)/income
for the period - - (1,486,003) (1,486,003) 274,807 (1,211,196)
Capital raised 535 - - 535 - 535
Translation
reserve - - (8,045) (8,045) - (8,045)
Change of Setcar
non-controlling
interests - - - - 919,594 919,594
Share based
payment reserve - - 61,251 61,251 - 61,251
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
Balance at 30 June
2021 191,531 31,395,612 (23,264,042) 8,323,101 2,101,286 10,424,387
------------------- -------- ----------- ------------------ ------------ -------------------------- ------------
CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended 30 June 2021
(Unaudited) (Unaudited) Audited
30 Jun 2021 30 Jun 2020 31 Dec 2020
------------ ------------ ------------
Loss for the year before tax (1,087,639) (2,485,900) (4,657,387)
Adjusted for:
Depreciation 489,675 406,674 1,020,387
Amortisation of intangible assets 285,718 295,529 670,485
Share based payment charge 61,251 - 19,286
Finance income (163,820) (1,808) (1,175)
Finance expense 13,970 314,624 326,118
Interest of lease liabilities 12,543 - 21,589
Operating cash flow before working
capital changes (388,302) (1,470,881) (2,600,697)
Decrease / (Increase) in inventories (282,000) 68,693 (280,011)
Decrease / (Increase) in trade
and other receivables, prepayments 241,900 496,235 179,292
(Decrease) / Increase in trade
and other payables (1,325,658) (2,624,462) (1,398,380)
Increase / (decrease) in provisions
and employee benefits 16,765 15,404 24,844
Net cash used in operating activities (1,737,295) (3,515,011) (4,074,952)
---------------------------------------- ------------ ------------ ------------
Cash flows from investing activities
Interest received 427 1,808 1,175
Investment in intangible assets (120,445) (146,872) (434,898)
Contingent consideration (442,205) - (208,097)
Acquisition of property, plant
and equipment (458,996) (67,303) (195,991)
---------------------------------------- ------------ ------------ ------------
Net cash used in investing activities (1,021,219) (2,12,367) (837,811)
---------------------------------------- ------------ ------------ ------------
Cash flows from financing activities
Proceeds from Capital raise 535 23,006 484
Interest Paid (8,622) (18,586) (45,647)
New Borrowings 872,945 872,250 1,874,243
Repayment of borrowings (35,214) (217,288) (360,164)
Interest of lease liabilities (12,543) (7,143) (21,589)
Repayment of lease liabilities (102,894) (80,477) (78,646)
Net cash generated from financing
activities 714,207 571,762 1,368,681
---------------------------------------- ------------ ------------ ------------
Net increase in cash and cash
equivalent (2,044,307) (3,155,616) (3,544,082)
Effect of exchange rate changes 155,348 (259,446) (281,502)
Cash and cash equivalents at beginning
of the period 7,080,492 10,906,076 10,906,076
Cash and cash equivalents at end
of the period 5,191,533 7,491,014 7,080,492
---------------------------------------- ------------ ------------ ------------
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
For the 6 months ended 30 June 2021
1. Basis of preparation
(a) Statement of compliance
The financial information contained in this announcement does
not constitute statutory financial statements within the meaning of
Section 435 of the Companies Act 2006.
The financial information for the six months ended 30 June 2021
is unaudited. In the opinion of the Directors, the financial
information for the period fairly represents the financial position
of the Group. Results of operations and cash flows for the period
are in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006. The
accounting policies, estimates and judgements applied are
consistent with those disclosed in the Group's statutory financial
statements for the year ended 31 December 2020. The interim
condensed consolidated financial statements do not include all the
information and disclosures required in the annual financial
statements and should be read in conjunction with the full annual
report for the year ended 31 December 2020.
All financial information is presented in Euro, unless otherwise
disclosed.
The Directors of the Company approved the financial information
included in these Interim condensed consolidated financial
statements on 28 September 2021.
(b) Basis of measurement
The financial statements have been prepared on the historical
cost basis unless otherwise stated.
(c) Functional and presentation currency
These financial statements are presented in Euro ('EUR') and is
considered by the Directors to be the most appropriate presentation
currency to assist the users of the financial statements. The
functional currency of the Company and operating subsidiary is Euro
('EUR'). The functional currency of the Romanian subsidiary is
RON.
(d) Going concern
The Group meets its working capital requirements through the
receipt of revenues from the provision of its services and sale of
products mainly in Europe, the management of capital and operating
expenditure, from the working capital and other borrowing
facilities available to it and from the issue of equity
capital.
As at 30 June 2021, the Group had net assets of EUR10.42m
(31/12/2020: EUR10.66m) and cash and cash equivalent of EUR5.19m
(31/12/2020: EUR7.08m).
The Directors prepare annual budgets and forecasts in order to
ensure that they have sufficient liquidity in place in the
business. The Group is projected to have the financial capacity to
support its viability, following the uncertainties and challenges
created by the COVID-19 pandemic, until at least the end of
2022.
Having regard to the above and based on their latest assessment
of the budgets and forecasts for the business of the company, the
Directors consider that there are sufficient funds available to the
Group to enable it to meet its liabilities as they fall due for a
period of not less than twelve months from the date of approval of
the financial statements. The Directors therefore consider it
appropriate to adopt the going concern basis of accounting in
preparing the financial statements.
2. Earnings Per Share
The earnings per share have been calculated using the weighted
average of ordinary shares. The Company was loss making for all
periods presented. Therefore, the dilutive effect of share options
has not been taken account of in the calculation of diluted
earnings per share, since this would decrease the loss per share
for each of the period reported.
Change Total Weighted
in
number number of number of
of
ordinary ordinary ordinary
shares shares Days shares
--------------------- ----------- ----------- ----- -----------
At 30 June 2018 - 44,212,827 182 44,212,827
--------------------- ----------- ----------- ----- -----------
At 31 December 2018 4,256,000 48,468,827 365 44,376,071
--------------------- ----------- ----------- ----- -----------
At 30 June 2019 2,647,609 51,116,436 182 50,970,963
--------------------- ----------- ----------- ----- -----------
At 31 December 2019 12,530,156 60,998,983 365 52,973,511
--------------------- ----------- ----------- ----- -----------
At 30 June 2020 111,980 61,110,963 182 60,999,598
--------------------- ----------- ----------- ----- -----------
At 31 December 2020 63,624 61,174,587 365 61,087,158
--------------------- ----------- ----------- ----- -----------
At 30 June 2021 198,872 61,365,459 181 61,351,750
--------------------- ----------- ----------- ----- -----------
Earnings per share
30 Jun 2021 30 Jun 2020 31 Dec 2020
Loss for the year (1,479,086) (2,321,885) (4,195,011)
Weighted average number
of shares:
- Basic 61,351,750 60,999,598 61,087,158
- Diluted 61,351,750 60,999,598 61,087,158
Loss per share
- Basic (0.02) (0.04) (0.07)
- Diluted (0.02) (0.04) (0.07)
-ends-
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END
IR DKFBKKBKBCCB
(END) Dow Jones Newswires
September 29, 2021 02:00 ET (06:00 GMT)
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