TIDMETP
RNS Number : 2696A
Eneraqua Technologies PLC
23 May 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
23 May 2023
Eneraqua Technologies plc
("Eneraqua Technologies", the "Company" or the "Group")
Preliminary Results for the year ended 31 January 2023
Eneraqua Technologies plc, a provider of specialist energy and
water efficiency solutions, is pleased to announce its preliminary
results for the year ended 31 January 2023.
Highlights
FY to Jan FY to Jan change
2023 2022
Revenue GBP55.1m GBP36.2m 52%
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EBITDA GBP11.7m GBP5.6m 112%
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Adjusted EBITDA(1) GBP11.8m GBP6.7m 76%
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Adjusted EBITDA margin 21.5% 18.6%
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Adjusted PBT GBP10.1m GBP5.6m 79%
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Adjusted diluted EPS 25.60p 24.91p 2.9%
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Cash generated from operations (GBP3.4m) GBP3.0m n.a.
========== ========== =======
Cash conversion(2) (26%) 66%
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ROCE 34.5% 26.6%
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Dividend per share 1.2p 1.0p 20%
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-- Significant revenue and adjusted PBT growth of 52% and 79%
respectively driven by repeat customer orders, new client wins,
geographic expansion and the entering of new markets. This
is despite impact of high inflation on client budgets during
year.
-- Delivered 42% gross margin due to a change in the mix of projects,
with certain higher margin projects moving from FY24 into the
latter part of FY23, in addition to management initiatives
to tighten control of direct costs and the pass through of
costs to customers.
-- Group working capital profile changed during the year, as lead
times for key components increased significantly, requiring
the Group to bulk purchase items ahead of payment from clients.
In addition, impact of inflation led clients to make late changes
to project plans leading to a heavy Q4 bias on project delivery
resulting in an increased level of trade receivables at the
year end. Both of these factors contributed to the Group ending
the year with net debt of GBP3.0m (FY22: net cash GBP4.1m),
excluding IFRS 16 liabilities.
-- Energy clients continue to seek a move to heat pump systems
to reduce carbon emissions and exposure to fossil fuel markets.
-- Water emerging as an increasingly exciting opportunity with
significant wins in agritech and net water-neutrality demonstrating
the multi-faceted abilities of our Control Flow HL2024 products.
-- Global production facility at Toledo, Spain progressing well
and due for completion in October 2023.
-- Board recommending increase in dividend of 20% to 1.2p per
share.
Current trading and outlook
-- Record order book(3) of GBP130.4m of which 62% is currently
anticipated to be delivered in FY24.
-- Unwind of working capital, with approximately 54% of accrued
income at the year-end has now been converted into cash.
-- Increased investment in R&D to cGBP2.4m, reflecting the increased
product development and trials planned which are essential
to ensure long-term growth, in addition to planned expansion
on the IP portfolio.
-- Unexpected inflation spike in other building works areas during
calendar 2022 affected client programmes. This saw some urgent
smaller value, higher margin projects move into FY23 with larger,
lower margin projects moved to FY24. As a result, we expect
to see FY24 revenues significantly ahead of previous management
expectations with high-single digit PBT margins, before reverting
to a more balanced mix of projects and margins in FY25.
-- Improved working capital as the investment in Q4 FY23 unwinds
with cash conversion expected to exceed 100% during FY24.
Acquisitions
-- Acquired Mathewson Holdings in August 2022, which has complementary
technical capability and a market presence in the health and
commercial sectors, which is already creating new market opportunities.
-- Post period end completed the acquisition of the Dutch business,
Installatiebedrijf Vriend B.V. ("Vriend"). This acquisition
provides a springboard to accelerate European growth strategy.
Commenting on the results, Eneraqua Technologies CEO, Mitesh
Dhanak, said: "FY23 was another year of solid progress for
Eneraqua, as the Group successfully executed against its growth
strategy. Within the context of the energy crisis and wider
macro-economic uncertainty, Eneraqua, thanks to the hard work of
our team, has in many cases exceeded the Board's expectations and
continued to deliver cutting edge cleantech technologies and
solutions to customers, globally.
"This year saw substantial growth across the business, with new
customer wins and geographic expansion contributing to considerable
growth in both revenue and profit. The high inflation seen towards
the end of 2022 impacted client budgets and led them to
re-prioritise and focus on heating systems that had, or were about
to break down. Importantly, no contracts were cancelled
underscoring the strength of our client relationships and the value
of the solutions we provide. The re-prioritisation of client
budgets resulted in some movement in project mix with some smaller,
higher margin projects moved into FY23 and larger, lower margin
projects now expected to fall into the current year, anticipated to
result in revenues ahead of our expectations with high-single digit
PBT margins, before moving to a more balanced mix of projects and
PBT margin in FY25.
" The opportunities facing the Group remain substantial. We are
in a strong position with proven products and solutions and our
geographic expansion plans into continental Europe remain on course
with growth in Water exceeding our original expectations at IPO. As
a result, we are confident in the future prospects for the
Group."
An overview of the results is available to watch here:
https://bit.ly/ETP_FY23_overview
Analyst Presentation
A presentation for analysts will be held today at 9:00am via
webinar. Analysts wishing to attend should contact
eneraqua@almapr.co.uk .
Investor Presentation
A presentation to retail investors will be hosted at 11am this
morning. Investors are invited to sign up for the presentation via
the PI World platform using the following link:
https://bit.ly/ETP_FY23_results_webinar . Questions can be
submitted during the presentation.
(1) Adjusted EBITDA is considered to be a Key Performance
Indicator and consistent with how the Group measures trading and
cash generative performance. Note this is an Alternative
Performance Measure and is a non-IFRS measure.
(2) Cash from operating activities/EBITDA
(3) Order Book defined as Contract + Secured. Contracted =
project contact issued and signed, with work started or ready to
start. Secured = sum of a) tender process successful, awaiting
project contract, and b) Directors' assumed win rate on Framework
opportunities
For further information please contact:
Eneraqua Technologies plc Via Alma PR
Mitesh Dhanak, Chief Executive Officer
Iain Richardson, Chief Financial Officer
Liberum (Nomad and Joint Broker) Tel: 0203 100 2000
Edward Mansfield
Benjamin Cryer
Singer Capital Markets (Joint Broker) Tel: 020 7496 3000
Sandy Fraser
Justin McKeegan
Asha Chotai
Alma PR (Financial PR) Tel: 020 3405 0205
Justine James eneraqua@almapr.co.uk
Sam Modlin
Will Ellis Hancock
Notes to editors
Eneraqua Technologies (AIM:ETP) is a specialist in energy and
water efficiency. The Group has two divisions energy and water.
Energy is the larger division, with the Company focused on clients
with end of life gas, oil or electric heating and hot water
systems. The Group provides turnkey retrofit district or communal
heating systems based either on high-efficiency gas or ground/air
source heat pump solutions that support Net Zero and
decarbonisation goals.
The water division is a growing service offering focused on
water efficiency upgrades for utilities and commercial clients
including hotels and care homes.
The activities in both divisions are underpinned by the
Company's wholly-owned intellectual property, the Control Flow
HL2024 family of products which reduce water wastage and improve
the performance of heating and hot water systems.
The Company's main country of operation is the United Kingdom.
The Company's head office is based in London with additional
offices in Leeds, Washington (Sunderland), India, Spain and the
Netherlands. The Company has 168 employees, with the majority
employed within the UK. Eneraqua Technologies has received the
London Stock Exchange's Green Economy Mark.
To find out more, please visit: www.eneraquatechnologies.com
Chairman's statement
At the time of our IPO in November 2021, we set out our strategy
for growth. Growth in scale and operating capability, geographic
reach, technical excellence, customer base, revenue and profit. Our
strategy was predominantly based on organic growth, complemented by
targeted acquisitions to enter new markets or secure key
capabilities.
I am pleased to report that in the year ended 31 January 2023,
our first full financial year as an AIM quoted company, we have
delivered on that growth strategy notwithstanding the substantial
inflation seen in the second half of the year and the inevitable
impact on the scheduling of our clients' projects.
Revenues increased by 52% over the prior year, to GBP55.1m
(FY22: GBP36.2m). Adjusted profit before tax was up by 79% to
GBP10.1m (FY22: GBP5.6m) and adjusted EBITDA(1) was up 76% to
GBP11.9m (FY22: GBP6.7m) and the Group's order book has grown to
GBP130.4m. This excellent performance was the result of strong
executive leadership and outstanding effort and execution across
the whole company. On behalf of the Board and shareholders I give
every colleague our thanks.
Developing the business
We were determined that in addition to delivering excellent
growth in FY23, we should continue building for the future, and
with this in mind we have invested heavily in both people and
R&D to enhance our ability to deliver for FY24 and beyond.
In the UK we won new clients for our energy and water products
and services, while also gaining repeat orders from existing
customers. In Leeds, we installed one of the first high temperature
air source heat pump systems in a UK residential setting. This
testifies to the technical skills of our people and underscores the
demand for our technologies.
Our commercial energy work with new clients increased in the
year, an example being Oxford County Council, for which we are
helping deliver an ambitious decarbonisation project.
In Water, our products are now being recognised as a range of
proven solutions for water efficiency and related areas, including
water and nitrate neutrality and reducing utility bills.
In India, we continue to develop our offering, both commercially
and technically. The high-quality engineering skills of our team in
Kolkata have developed new water efficiency products for which
patents have been applied. These new products build on our core
HL2024 technology and create another new exciting growth
opportunity in agritech.
Acquisitions
The addressable market in the UK and Europe continues to expand,
supported by regulatory growth drivers. In line with our strategy,
we continue to review opportunities with the objective of expanding
our capabilities and reach through acquisition.
In August 2022 we acquired Mathewson Holdings, which has a
technical capability that complements our own and a market presence
in the health and commercial sectors, which is creating new market
opportunities for the Group.
Post-period end, in April, we acquired Vriend , a business
incorporated in the Netherlands. This exciting acquisition, of a
highly skilled and well-established team, gives us a springboard
for our Energy and Water solutions in the Netherlands, with the
correct local accreditations which will enable us to access new
tender opportunities and accelerate our growth strategy in
continental Europe.
Further afield, we successfully established our new global
manufacturing site in Spain, which will further support our drive
into wider European markets by allowing us to expand the range of
products that we offer, while enhancing our manufacturing
capability and reducing production costs by some 12% per unit. This
included reviewing the assets transferred from HGP in Holland. Our
focus is on countries which have similar Net Zero and water stress
issues as the UK and allow us to replicate our approach. For
Energy, we are looking at countries in north-west Europe that are
on a similar journey as the UK on heat pump deployment. For Water,
we are focussing initially on expanding our offering in Europe and
India but water stress is a global problem and the longer term
opportunity is therefore much greater.
The drive towards Net Zero energy continues with the imperative
of increased pace towards that goal becoming more obvious each year
and creating significant, long-lasting opportunities for the
Company.
Growing strength
The funds raised at IPO gave us the financial resources to
accelerate growth. In what was a challenging year in terms of
supply chain disruption, inflation and changes to the regulatory
environment, we had the ability to invest in our own capabilities,
ensuring we were able to support our customers and meet their needs
while simultaneously improving the capabilities and capacities of
our market leading solutions.
Being an AIM quoted company has given us other tangible benefits
with existing and potential clients reacting positively to the
transparency and governance required. In addition, we can use
equity incentives throughout the business to motivate our people
and align their interests with those of shareholders.
The capital raised enabled the Group to grow its headcount with
a particular focus on sales and project management roles. The
number of colleagues working for the Group was 168 at the year-end,
compared with 113 the previous year, an increase of 48%. This
places the Group in a strong position from which to support its
growth ambitions.
A key factor in enabling us to realise opportunities both last
year and those which lie ahead, is building and retaining a skilled
and motivated workforce. We operate in fields where there is strong
competition for talent. We have increased our Human Resources
capabilities and focus on providing not only good financial rewards
for our staff, but an exciting and enjoyable place to work where
people can contribute all their talents in a diverse,
team-orientated environment.
Shareholder value and dividend
We operate in an attractive growth market in which we believe we
are doing good for society and the environment around us. These
factors support our drive to create value for shareholders.
In FY22, we announced our maiden dividend, of 1 penny per share,
which was paid in September 2022. We recognise the importance of
income as a component of shareholder returns. The Board is,
therefore, establishing a progressive dividend policy and
recommending a dividend of 1.2 pence per share payable in September
2023, representing a 20% increase on the previous year.
The current year and outlook
The current year has seen work commence on a number of new
projects for clients including the London Borough of Lambeth. As
outlined above, the very high inflation seen towards the end of
calendar 2022 impacted our client budgets and led them to
re-prioritise, causing individual projects to move between
financial years. As a result of the shift of larger, lower margin
projects into the current year, the Group now expects revenues to
be significantly ahead of its earlier expectations, with
high-single digit PBT margins in FY24, before reverting to a more
normal mix of projects and margin in FY25. Importantly, however, no
contracts were cancelled or are expected to be cancelled,
underscoring the strength of our client relationships and the value
of the solutions we provide.
In the current financial year, we expect to extend both our
geographical reach and our expansion into new growth sectors,
through both organic development and through further
acquisitions.
This year we have delivered against the ambitious targets we set
ourselves as we laid out our path to growth. Looking ahead, we are
confident of continuing to deliver against our clear growth
strategy and in being able to grasp successfully the opportunities
ahead of us, which in turn will deliver increased value for our
customers and shareholders.
Guy Stenhouse
Chairman
22 May 2023
CEO Statement
Strong performance across year
Our goal remains to be a leading clean energy and water
specialist. The year saw very encouraging progress as the Group
successfully executed its growth strategy and delivering cutting
edge cleantech technologies and solutions to our UK and
international clients.
We saw substantial growth in revenue and adjusted PBT of 52% and
79% respectively with repeat orders, new client wins, geographic
expansion and the entering of new markets. This growth underlines
the strength of the technologies and solutions we offer our
clients. Our products are now gaining acceptance as proven
solutions to help clients meet their regulatory, climate change and
cost reduction goals.
These outcomes were also pleasing given the significant
inflationary, supply chain and labour market challenges during the
year. Our success in managing these reflects the resilience of our
business model.
As a result of the inflationary pressures in late calendar 2022,
client budgets came under strain with some needing to reprioritise
their project schedules to focus on the most urgent projects where
heating systems had or were about to break down. This saw lower
value, higher margin projects prioritised into FY23 with larger,
lower margin projects pushed beyond the period end. The late
changes affected overall cash conversion but this is recovering
post year-end. By showing our ability to manage and support our
clients, we were able to deepen our relationships as a trusted,
agile partner.
Our markets
There is an increasing need, globally, for the solutions we
provide. Governments and organisations are committed to reducing
global carbon emissions as quickly as possible. It is this
long-term commitment to the reduction of emissions that serves as
our key growth driver as public and private bodies seek ways to
meet the carbon reduction targets that have been set by
international bodies.
COP27 saw the reaffirmation of the commitment, by nations from
around the world, to limit the global temperature increase to
1.5degc above pre-industrial levels. To reach this target,
greenhouse gas emissions need to be reduced by 45% compared to
levels in 2010, by 2030. [1]
Outside of the broader environmental commitments there is a
growing financial imperative for carbon transition. The
International Monetary Fund (IMF) [2] noted in September that UK
households, as a result of the energy crisis brought on by the
events in Ukraine, were the worst hit in western Europe. Both our
Energy and Water solutions emerged in the period as effective
options to help lower energy costs, cut carbon emissions and reduce
water wastage.
Net Zero targets require the decarbonisation of heating, moving
away from using gas or oil. We are experts in the design and
implementation of heating systems which leverage our Control Flow
HL2024 technology to deliver high efficiency outcomes, often
utilising heat pump systems.
Water stress remains a high profile, global issue and there are
growing regulatory factors designed to ensure improved efficiency
of water collection and usage. The effects are seen across the UK,
Europe, India and North America and include inhibiting development
and impacting economic growth.
This year also saw the emergence of another key growth driver,
the cost of living crisis. Early in the year energy prices rose
dramatically and the need to reduce energy costs both for consumers
and organisations became imperative. Public and private
organisations as well as consumers were forced to take action to
reduce costs.
Financial performance
In FY23 the Group delivered a robust financial performance, with
Group revenues up 52% to GBP55.1m (FY22: GBP36.2m) and adjusted
profit before tax by 79% to GBP10.1m (FY22: GBP5.6m). Adjusted
EBITDA was up 76% to GBP11.9m (FY22: GBP6.7m).
Gross margin improved to 41.7% due to the change in the planned
mix of projects, with certain higher margin projects moving from
FY24 into the latter part of FY23. It is also a reflection of tight
control of direct costs and the pass through of costs to
customers.
The order book remains strong at GBP130.4m with 62% due to occur
in FY24. Our revenues remain second-half weighted reflecting client
procurement processes. While wider market inflationary and cost
pressures affected the capital budgets of clients leading them to
focus on priority projects, it is important to note that no
contracts have been cancelled, with delivery of other planned
projects moving out.
The business remains well funded with a closing cash balance of
GBP3.2m (FY22: GBP4.1m). Net debt at the year end was GBP4.7m
(GBP3.0m excluding IFRS16 Lease Liabilities) (FY22 net cash GBP4.1m
excluding IFRS16 Lease Liabilities) reflecting the investment in
materials and working capital in Q4 combined with the deferral in
client contract start dates. An enhanced assurance process
introduced by the Government in November 2022 was initially
under-resourced caused backlogs in the approval process of
completed projects increasing the level of accrued income at the
year end. The issue is now unwinding following additional
resourcing by the Government in the approval process. Following the
period end, 54% of accrued income has unwound and been received as
cash by the Company.
Our debt facilities and improved working capital in the first
few months of FY24 give us a good base from which to execute our
investment roadmap, continuing to build out and integrate our
acquired businesses and support growth, globally.
Operational and Strategic Progress
Significant progress was achieved during the year towards our
goal of being a recognised leader in the clean energy and water
sectors. The performance of our product solutions for both energy
and water in particular gaining greater recognition.
In the Energy sector we continued to see clients seeking a move
to heat pump systems to reduce carbon emissions and exposure to
fossil fuel markets. In late calendar 2022, an inflationary spike
on other types of capital works such as building cladding created
pressure on our clients' cash budgets. Our clients responded by
changing their planned project programmes to reduce their overall
in-year cash spend. This saw a focus on the most urgent projects
where heating systems had or were about to break down with other
projects delayed into later years. This change resulted in lower
value, higher margin projects moved into FY23 and higher value,
lower margin projects moved into FY24. No contracts were cancelled
in this process reflecting the need for the work to be completed
and the strength of our relationships. The impact of this
inflationary pressure has stabilised and we expect a return to a
normal mix of projects in FY25.
We continued to secure new projects and clients during the year
and in H2 FY23 the Group announced the award of multiple,
multi-year contracts with both new and existing social housing and
private sector clients to provide heat pump solutions, with a total
contract value of up to GBP36m, to be phased across the next three
years. These wins and the continued delivery of our energy
projects, despite the wider macroeconomic conditions, underpin our
confidence in our Energy offerings and the opportunities facing the
Group.
Water saw substantial progress during the year. In India we
secured and delivered our first agritech contract for GBP0.9m to
provide clean energy, water efficient irrigation systems for the
State of Uttarakhand. This is a major new sector that we
highlighted at the time of IPO. Our products are also currently
undergoing trials in Spain to confirm their performance on the
types of irrigation systems used in the EU.
In August, we completed a successful water neutrality pilot at
Crawley. This was based on the long-term water savings offered by
our Control Flow products, which allowed for the complete offset of
demand from new build housing by improving water efficiency in
existing homes. This is an important solution that could help
unlock the c120,000 new build houses currently held in the planning
phase, in the UK due to concerns on water and nitrate
neutrality.
The pilot in Crawley also showed that the products significantly
improved energy use and overall, reduced resident utility bills.
Further trials are underway to determine the value of Control Flow
in helping address the risks from fuel poverty. Separately we have
an early-stage B2C offering in trial to determine the potential to
offer the Control Flow solution directly to all householders.
The successes achieved in Energy were supported by our
acquisition of Mathewson, in August 2022, which improved our access
to the healthcare and commercial sectors. Since the Mathewson
acquisition, we have seen an increased pipeline of opportunities in
this area further supporting our confidence in this side of the
business.
Post-period end we completed the acquisition of Vriend in the
Netherlands. This is a small, targeted acquisition that provides us
with the credentials and base to offer our apartment-block heat
pump solutions to the Dutch market. Our choice of Holland was based
on experience of working in the country and the similarity in
approach on Net Zero. Holland has set a target of reducing carbon
emissions by 49% by 2030 with a strong emphasis on using heat pump
systems.
Our research and development work is also ongoing, with new
patents applied for in connection with our agritech products. We
also refined the design of some of our existing products to ease
installation and improve performance. This ongoing effort ensures
that we maintain our performance lead on competitors.
The global production facility is nearing completion at Toledo,
Spain. Going forward this will be responsible for the assembly and
supply of the Control Flow product range. Having a central
facility, allows us better quality control and also reduces
production costs by 12% per unit.
ESG
ESG remains at the heart of our business ethos and runs through
the core of our strategy. Based on Scope 1 and 2 emissions, we are
a Net Zero company.
As a company with a global presence our ESG approach is
coordinated across the Group and focuses on the issues affecting
our business and stakeholders to reinforce our commitment to
responsible business practices.
We collaborate with our internal and external stakeholders to
develop, implement, and refine our sustainability strategy. We are
very proud of our London Stock Exchange Green Economy Mark,
signposting that we, as a business, derived 83% of our FY23
revenues from products and services that contribute to
environmental objectives such as climate change mitigation and
adaptation, waste and pollution reduction, and the circular
economy.
Working with an independent ESG consultancy, we have developed
our ESG strategy, improving data collection to more accurately and
consistently report our progress and credentials.
In FY23 we completed the measurement and reporting of our Scope
1 and 2 emissions across our global operations in the UK, Spain,
India, and The Netherlands. Our total carbon emissions for the
period were 714 tCO(2) e.
In FY23 the Group saved over 209,000 tCO(2) e through our
Control Flow technology and renewable heating solutions designed to
deliver our clients net carbon zero strategies. This is a
significant saving and more than offsets the level of carbon
generated by the Group in its Scope 1 and 2 activities.
We understand the importance of strong governance as a
foundation for achieving our ESG objectives. We believe effective
governance practices are essential to maintaining the trust and
confidence of our stakeholders, including our customers, employees,
shareholders, and the communities where we operate.
Our governance framework is designed to promote ethical conduct,
accountability, and transparency across our operations.
People
Our employees are at the heart of our Company and are the reason
for our success. During the year we continued to invest in the
development of existing staff as well as recruiting people to meet
the demand for our products and services. Our recruitment and
development process strongly emphasises our corporate culture and
we promote equal opportunities and diversity to create an inclusive
working environment. Our last staff survey showed that 95% of our
employees agree/strongly agree that Eneraqua is a great place to
work; a fact that underpins our low staff turnover of 7%, excluding
those who left during their probation period,
Outlook
Our products and services offer proven solutions to help clients
meet their climate change and water stress challenges. We continue
to enter new territories with the recent acquisition of Vriend, now
enabling us to offer our Energy and Water solutions in the
Netherlands.
Our Water solutions, in particular, are attracting much
international interest: for example in India with multiple states
expressing strong interest in similar agritech projects to
Uttarakhand. In Spain we are carrying out trials of the agritech
product and also the domestic water saving products, opening up new
markets.
Following the acquisition of Vriend, we plan to carry out trials
to demonstrate the net water and net nitrate neutrality benefits of
Control Flow. This builds on the experience of the net neutrality
project in Crawley in unlocking development.
In Energy, we continue to be UK-focused with a strong public
sector client emphasis. The recent contract wins show that our
solutions and quality of work are widely recognised. With the
acquisition of Vriend, we will expand our Energy offering into
Holland as part of our wider strategy for northwest Europe. Our
choice of Holland was based on long experience with the country and
the fact that it is on a similar Net Zero journey as the UK.
Our R&D spend is expected to rise from GBP1.8m in FY23 to
GBP2.4m in the coming year, reflecting the increased product
development and trials planned which are essential to ensure our
long-term growth. We also expect to expand our intellectual
property portfolio. We expect to maintain this level of investment
going forward in order both to meet the individual country
certification requirements and also widen our range of product
offerings.
As previously stated, the working capital position at year end
is unwinding as expected with 54% of accrued income converting into
cash post period end.
The order book for FY24 stands at GBP130.4m, of which we
currently anticipate 62% to occur in the current year. As set out
earlier, the unexpected inflation spike did create pressure on
Energy client budgets and resulted in them re-phasing their project
plans. The mix of Energy projects in FY24 are more heavily weighted
towards higher value and lower margins with revenues to be ahead of
our expectations with high-single digit PBT margins. Based on
client programmes, we expect to revert to a more normal mix of
projects and margins in FY25.
The opportunities facing the Group remain significant. We are in
a strong position with proven products and solutions and our
geographic expansion plans remain on course with growth in Water
exceeding our original expectations at IPO. As a result, we are
confident in the future prospects for the Group.
Mitesh Dhanak
CEO
22 May 2023
CFO Statement
I am pleased to report on our first full financial year as an
AIM quoted company, for the year to 31 January 2023.
2023 was a year in which we achieved strong growth with a 52%
increase in revenue to GBP55.1m with the growth driven by strong
operational and strategic process with strong growth in new
business for both Energy and Water.
Strategy
The Group's strategy continues to be focused on developing and
delivering profitable solutions and products which help our clients
reduce their carbon consumption and improve their water
efficiency.
KPI's
The Group's financial Key Performance Indicators, which are
aligned with its growth strategy, are revenue growth, adjusted
EBITDA, adjusted EBITDA margin, adjusted Profit before Tax, R&D
spend, cash conversion and ROCE. These non-IFRS measures are
consistent with how the Group measures trading and cash generative
performance and are reported to the Board. Of these KPIs, five
delivered well in the year to 31 January 2023.
Cash conversion was lower than anticipated due to a number of
factors including:
-- Increased lead times for key components, requiring these
items to be purchased before projects started rather than
during the life of a project.
-- The enhanced assurance process introduced by the Government
caused backlogs in the approval process of completed projects.
This backlog resulted in an increase in accrued income at
the year end, which is now unwinding.
-- Inflationary price pressures across our supplier base, not
all of which could be passed on to our customers.
-- Cost pressures on the capital budgets of certain clients,
causing certain projects to start later than anticipated,
increasing the bias of Group project delivery weighting
to H2. As a result we saw an increase in trade receivables
at the year end.
2023 2022
Revenue GBP55.1m GBP36.2m
Revenue growth 52% 148%
EBITDA(1) GBP11.7m GBP5.6m
Adjusted EBITDA(2) GBP11.8m GBP6.7m
Adjusted EBITDA margin(3) 21.5% 18.6%
Adjusted PBT GBP10.1m GBP5.6m
R&D spend GBP1.8m GBP1.4m
Cash conversion(4) (26%) 66%
ROCE(5) 34.5% 26.6%
Revenue
Group revenues increased by 52% to GBP55.1m, (FY22: GBP36.2m).
Excluding the Mathewson acquisition, UK revenues grew by 50% to
GBP54.0m (2022: GBP35.9m). International revenues grew by 105% from
GBP0.26m in 2022.
Profits
The improvement in revenue supported strong growth in profits
and profitability. Adjusted EBITDA(2) increased 76% to GBP11.8m,
(2022: GBP6.7m), with the Group achieving Adjusted EBITDA
margins(3) of 21.5%, up from 18.6% in 2022. Adjusted PBT for the
year was GBP10.1m an increase of 79% from 2022.
Statutory operating profit increased to GBP10.3m (2022: GBP4.4m)
and statutory profit before tax was GBP9.9m (FY22: GBP4.1m).
Acquisitions
On 29 July 2022 the Group acquired Mathewson Holdings Limited
("Mathewson"). The total consideration for the acquisition,
including deferred consideration, is GBP1.7m. The acquisition was
the continuation of our clear growth strategy in the UK, laid out
at the time of our IPO, to acquire bolt-on opportunities which
provide access to new markets. For the period following
acquisition, Mathewson recorded revenues of GBP0.6m and operating
profit of GBP0.2m.
Following the successful completion of the HaGePe International
B.V. acquisition last year and the transfer of its assets,
including stock, to Cenergist Spain S.L., in November 2022 the
Board reviewed the value of the assets transferred and, in
particular, the provision made against stock and concluded that
this provision was no longer required. The value of the provision
released in the year was GBP0.7m.
I am pleased to announce that post-year end, on 3 April 2023,
the Group acquired Vriend. The total consideration for the
acquisition, is EUR521,928. The acquisition is part of our European
growth strategy and now gives the Group delivery capabilities in
the Netherlands. The Board considers that this acquisition delivers
value to shareholders by accelerating the growth opportunity in
continental Europe.
Adjusting Items
The total pre-tax adjusting items in the year were GBP0.1m.
These were GBP0.1m of charges for share-based payments (2022:
GBP0.3m).
Earnings per share
Basic earnings were 25.50p (2022: 18.28p) and diluted earnings
per share were 25.25p (2022: 18.16p).
Dividends
For the financial year ended 31 January 2023, following a strong
performance the Board is delighted to recommend a final dividend
for the year of 1.2p per share, subject to shareholder approval.
This is a 20% increase from 2022 and establishes the Board's
progressive dividend policy.
Headcount
The Group's full time equivalent (FTE) employees at 31 January
2023 were 168 (FY22: 113). This increase reflects the acceleration
in recruitment, to support the Group's growth strategy.
Share capital and share options
No share options were issued during the year under the Long Term
Incentive Plan with the total share options in issue at the yearend
remaining at 332,673.
Intangible assets
Following the Group's admission on AIM, the Board carried out a
review of the Group's accounting estimates to ensure that they were
appropriate given the recent growth of the Company and the
increased levels of compliance the Group is now subject to. As a
result of this review, it was concluded that the previous useful
economic life of 5-years assumed for patents was not appropriate
for intangible assets of this nature. The Board believe that a
useful economic life of 15 years was realistic, and the
amortisation of these assets has been adjusted accordingly. The
adjustment resulted in a positive impact to the profit & loss
account of GBP0.4m.
Cash flow and net debt
Cash conversion declined significantly from last year with a
cash outflow from operations of GBP3.4m (FY22: GBP3.0m inflow).
This was as a result of a change in the working capital profile
during the year. The lead times for key components on a number of
projects increased significantly, requiring the Group to bulk
purchase these items at the start of these projects, ahead of
receiving funding from clients, rather than during the project
life, to ensure project delivery timescales were met. In addition,
a heavy Q4 bias on project delivery has seen an increased level of
trade and other receivables at the year end (FY23: GBP29.2m, FY22:
12.4m), negatively impacting working capital. The Board is pleased
that, post period end, 54% of the accrued income balance has been
received by the Company as cash.
Total capital expenditure on property, plant and equipment
amounted to GBP0.9m (FY22: GBP2.7m). In addition, there was a
further outflow of GBP1.6m for the acquisition of Mathewson
Holdings Limited.
The Group ended the year with net debt (excluding IFRS 16
liabilities) of GBP3.0m compared with GBP4.1m of net cash at 31
January 2022.
Post-year end the Group has secured GBP2.5m of additional
banking facilities with HSBC UK Plc. The new facility will support
the Group in its growth strategy, both in terms of working capital
requirements and acquisition opportunities.
Outlook
The Group is in a strong position with a healthy balance sheet
and order book which stands at GBP130.4m of which we currently
anticipate 62% to be delivered in the current year. The accrued
income at January is unwinding as expected, with the majority of
this having already converted into cash. We expect cash conversion
to exceed 100% during the year and return to a net cash position by
the year end.
(1) Operating profit prior to depreciation of property, plant
and equipment, depreciation of right-of-use assets and amortisation
of intangible assets
(2) Operating profit prior to exceptional costs, depreciation of
property, plant and equipment, depreciation of right-of-use assets
and amortisation of intangible assets
(3) Adjusted EBITDA as a proportion of revenue
(4) Cash from operating activities/EBITDA
(5) Operating profit as a percentage of total assets less
current liabilities
Iain Richardson
CFO
22 May 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 January 2023
2023
Unaudited 2022
Note GBP'000 GBP'000
------------------------------------------------------------- ------- ----------- ---------
Continuing operations
Revenue 4 55,074 36,176
Cost of sales (31,995) (21,572)
----------- ---------
Gross profit 23,079 14,604
Administrative expenses (12,774) (10,171)
Other operating income - -
------------------------------------------------------------- ------- ----------- ---------
Included within administrative expenses
are:
* Exceptional costs - (1,178)
* Share based payment charge (117) -
* Depreciation of property, plant and equipment (655) (618)
* Depreciation of right-of-use assets (196) (113)
* Amortisation of intangible assets (573) (381)
----------- ---------
Adjusted administrative expenses (11,233) (7,881)
----------- ---------
Adjusted EBITDA 11,846 6,723
------------------------------------------------------------- ------- ----------- ---------
Operating profit 6 10,305 4,433
Interest receivable and similar income - -
Interest payable and other similar expenses (370) (366)
------------------------------------------------------------- ------- ----------- ---------
Profit before taxation 9,935 4,067
Income tax 7 (1,420) (8)
------------------------------------------------------------- ------- ----------- ---------
Profit for the year from continuing operations 8,515 4,059
Total profit for the year attributable
to equity holders of the parent
Other comprehensive income - -
------------------------------------------------------------- ------- ----------- ---------
Total comprehensive profit for the year
attributable to equity holders of the
parent 8,515 4,059
============================================================= ======= =========== =========
Basic earnings per share from continuing
operations - pence 5 25.50 18.28
Diluted earnings per share from continuing
operations - pence 5 25.25 18.16
============================================================= ======= =========== =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 January 2023
2023
Unaudited 2022
Note GBP'000 GBP'000
-------------------------------------- -----
Non-current assets
Intangible assets 8 8,703 7,218
Property, plant and equipment 3,441 3,095
Right-of-use assets 1,213 243
Deferred tax asset - -
-------------------------------------- -----
Total non-current assets 13,357 10,556
-------------------------------------- -----
Current assets
Inventory 2,557 1,186
Trade and other receivables 9 29,226 12,389
Cash and cash equivalents 3,224 4,070
-------------------------------------- -----
Total current assets 35,007 17,645
-------------------------------------- ----- ----------- ---------
TOTAL ASSETS 48,364 28,201
====================================== ===== =========== =========
Equity attributable to owners of the
parent
Called up share capital 332 344
Share premium account 10,113 10,113
Merger reserve (5,490) (5,490)
Other reserves 269 (294)
Retained earnings 19,791 11,769
-------------------------------------- ----- ----------- ---------
Total equity 25,015 16,442
-------------------------------------- ----- ----------- ---------
Current liabilities
Borrowings 10 1,469 -
Trade and other payables 15,154 11,426
Lease liabilities 543 82
-------------------------------------- ----- ----------- ---------
Total current liabilities 17,166 11,508
-------------------------------------- ----- -----------
Non-current liabilities
Borrowings 10 4,732 -
Lease liabilities 1,183 109
Deferred tax liability 268 142
-------------------------------------- ----- -----------
Total non-current liabilities 6,183 251
-------------------------------------- ----- -----------
Total liabilities 23,349 11,759
-------------------------------------- ----- ----------- ---------
TOTAL EQUITY AND LIABILITIES 48,364 28,201
====================================== ===== =========== =========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 January 2023
Note 2023
Unaudited 2022
GBP'000 GBP'000
----------- ---------
Cash flow from operating activities
Profit for the financial year 8,515 4,059
Adjustments for:
Amortisation of intangible assets 573 381
Depreciation of property, plant
and equipment 655 618
Depreciation on right-of-use assets 196 113
Interest payable 313 330
Lease liability finance charge 57 36
Taxation charge 1,420 8
Corporation tax received 25 380
Foreign exchange (392) (38)
Share based payment charge 117 333
Changes in working capital:
Increase in inventory (1,371) (295)
Increase in trade and other receivables (16,837) (9,540)
Increase in trade and other payables 3,685 7,278
Net cash (outflow) / inflow from
operating activities (3,044) 3,663
------------------------------------------- ----- ----------- ---------
Cash flow from investing activities
Purchase of intangible assets (269) (549)
Purchase of property, plant and
equipment (882) (2,722)
Sale of property, plant and equipment 3 -
Acquisition of businesses - net
of cash acquired (1,620) (5,111)
Net cash outflow from investing
activities (2,768) (8,382)
------------------------------------------- ----- ----------- ---------
Cash flows from financing activities
Proceeds from borrowings 7,249 -
Repayment of borrowings (1,369) (4,972)
Net proceeds from issue of shares - 9,998
Reduction of share capital (12) -
Interest paid (313) (330)
Repayment of lease liabilities (261) (191)
Dividends paid (328) -
------------------------------------------- ----- ----------- ---------
Net cash inflow from financing activities 4,966 4,505
------------------------------------------- ----- ----------- ---------
Net decrease in cash and cash equivalents (846) (214)
Cash and cash equivalents at beginning
of period 4,070 4,284
Cash and cash equivalents at the
end of the period 11 3,224 4,070
------------------------------------------- ----- ----------- ---------
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
For the year ended 31 January 2023
Share Share Merger Other Retained Total
Capital Premium Reserve Reserves Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 February
2021 3 456 - 56 1,761 2,276
Profit for the
year - - - - 4,059 4,059
Other comprehensive
income - - - - - -
--------------------- --------- --------- --------- ---------- ---------- --------
Total comprehensive
income for the
year attributable
to equity holders
of the parent - - - - 4,059 4,059
--------------------- --------- --------- --------- ---------- ---------- --------
Merger reserve (3) (456) (5,490) - 5,949 -
Issue of shares 344 11,996 - - - 12,340
Share issue costs - (1,883) - - - (1,883)
Other(1) - - - (350) - (350)
Total transaction
with owners 341 9,657 (5,490) (350) 5,949 10,107
--------------------- --------- --------- --------- ---------- ---------- --------
Balance at 31
January 2022 344 10,113 (5,490) (294) 11,769 16,442
--------------------- --------- --------- --------- ---------- ---------- --------
At 1 February
2022 344 10,113 (5,490) (294) 11,769 16,442
Profit for the
year - - - - 8,515 8,515
Total comprehensive
income for the
year attributable
to equity holders
of the parent - - - - 8,515 8,515
--------------------- --------- --------- --------- ---------- ---------- --------
Reduction in share
capital (12) - - - - (12)
Dividends paid - - - - (328) (328)
Other(1) - - - 398 - 398
Total transaction
with owners (12) - - 398 (328) 58
--------------------- --------- --------- --------- ---------- ---------- --------
Balance at 31
January 2023 332 10,113 (5,490) 104 19,956 25,015
===================== ========= ========= ========= ========== ========== ========
(1) Other reserves include share based payments, foreign
exchange and other items.
NOTES TO THE FINANCIAL INFORMATION
For the year ended 31 January 2023
1 GENERAL INFORMATION
Eneraqua Technologies plc ("the Company") was incorporated and
registered in England and Wales on 19 August 2021 as a private
limited company, Eneraqua Technologies Limited, with its registered
office at 2 Windmill Street, Fitzrovia, London, W1T 2HX. On 8
November 2021 the company was re-registered as a public limited
company. The Company's registered number is 13575021.
The Group's principal activities are the provision of turnkey
solutions for water efficiency and decarbonisation, the latter
through district heating and ground source heat pump systems for
social housing, commercial clients, and the residential sector.
These activities are underpinned by our proprietary water savings
technology, Control Flow HL2024 , which improves the efficiency of
heating and water systems for customers across the UK and
Europe.
2 ACCOUNTING POLICIES
2.1 Basis of preparation
The preliminary results (unaudited) (referred to as the
'preliminary results') have been prepared in accordance with
International accounts standards in conformity with the
requirements of the Companies Act 2006 (UK-adopted IAS).
The financial statements have been prepared under the historical
cost convention as modified by financial assets at fair value
through profit or loss, and the recognition of net assets acquired
under the reverse acquisition at fair value.
The information for the year ended 31 January 2023 does not
constitute statutory accounts for the purposes of section 435 of
the Companies Act 2006. The audit of the statutory accounts for the
year ended 31 January 2023 is not yet complete. These accounts will
be finalised on the basis of the information presented by the
Directors in these preliminary results and will be delivered to the
Registrar of Companies following the Company's annual general
meeting.
Whilst the financial information included in this announcement
has been computed in accordance with the recognition and
measurement requirements of international accounting standards in
conformity with the requirements of the Companies Act 2006 and
international financial reporting standards, this announcement does
not itself contain sufficient disclosures to comply with IFRS.
The accounting policies included herein are aligned with those
presented in the Admission Document and are consistent with those
in the prior year.
There have been no changes in estimates and critical judgements
in the year, with the exception of the useful economic life of
patents, which was extended from 5 years to 15 years straight line
to better reflect the longer term nature of the benefits of such
patents. This has resulted in a like-for-like reduction in
amortisation by GBP0.4m.
3. SEGMENT REPORTING
The following information is given about the Group's reportable
segments:
The Chief Operating Decision Maker is the Board of Directors.
The Board reviews the Group's internal reporting in order to assess
performance of the Group. Management has determined the operating
segment based on the reports reviewed by the Board.
The Board considers that during the year ended 31 January 2023
the Group operated in the three business segments according to the
geographical location of its operations, those being:
- United Kingdom,
- Europe; and
- India.
United
2023 Kingdom Europe India 2023
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------- ------- --------- -------- ----------- ------- ---------
Revenue 54,546 77 451 55,074
Cost of sales(1) (32,525) 718 (188) (31,995)
--------- -------- ----------- ---------
Gross profit 22,021 795 263 23,079
Administrative expenses (11,249) (1,232) (293) (12,774)
------------------------------------------------------- ------- --------- -------- ----------- ------- ---------
Included within administrative
expenses are:
* Share based payment charge - (117) - - - (117)
* Depreciation of property, plant and equipme
nt (350) (288) (17) (655)
* Depreciation of right-of-use assets (196) - - (196)
* Amortisation of intangible assets (505) (68) - (573)
--------- -------- ----------- ---------
Adjusted administrative
expenses (10,081) (876) (276) (11,233)
--------- -------- ----------- ---------
Adjusted EBITDA 11,940 (81) (13) 11,846
------------------------------------------------------- ------- --------- -------- ----------- ------- ---------
Operating profit/(loss) 10,772 (437) (30) 10,305
Interest payable and similar
expenses (98) (271) (1) (370)
--------- -------- ----------- ---------
Profit/(Loss) before tax 10,674 (708) (31) 9,935
Taxation (1,378) (40) (2) (1,420)
--------- -------- ----------- ---------
Profit/(Loss) after tax 9,296 (748) (33) 8,515
--------- -------- ----------- ---------
Net Assets
Assets: 36,995 10,840 529 48,364
Liabilities (12,869) (9,955) (525) (23,349)
--------- -------- ----------- ---------
Net assets 24,126 885 4 25,015
--------- -------- ----------- ---------
United
2022 Kingdom Europe India 2022
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------------- --------- -------- -------- ---------
Revenue 35,918 216 42 36,176
Cost of sales (21,350) (187) (35) (21,572)
--------- -------- -------- ---------
Gross profit 14,568 29 7 14,604
Administrative expenses (8,974) (1,079) (118) (10,171)
---------------------------------------------------------- --------- -------- -------- ---------
Included within administrative
expenses are:
* Exceptional costs (1,178) - - (1,178)
* Depreciation of property, plant and equipment (132) (485) (1) (618)
* Depreciation of right-of-use assets (113) - - (113)
* Amortisation of intangible assets (339) (42) - (381)
--------- -------- -------- ---------
Adjusted administrative
expenses (7,212) (552) (117) (7,881)
--------- -------- -------- ---------
Adjusted EBITDA 7,356 (523) (110) 6,723
---------------------------------------------------------- --------- -------- -------- ---------
Operating profit/(loss) 5,594 (1,050) (111) 4,433
Interest receivable and
similar income - - - -
Interest payable and similar
expenses (366) - - (366)
--------- -------- -------- ---------
Profit/(Loss) before tax 5,228 (1,050) (111) 4,067
Taxation (7) (1) - (8)
--------- -------- -------- ---------
Profit/(Loss) after tax 5,221 (1,051) (111) 4,059
--------- -------- -------- ---------
Net Assets
Assets: 24,847 3,245 109 28,201
Liabilities (9,208) (2,538) (13) (11,759)
--------- -------- -------- ---------
Net assets 15,639 707 96 16,442
--------- -------- -------- ---------
(1) Europe cost of sales in 2023 includes GBP0.7m credit
relating to release of a stock provision.
4. REVENUE
2023 2022
GBP'000 GBP'000
---------------- --------- ---------
United Kingdom 54,546 35,918
Europe 77 216
India 451 42
55,074 36,176
--------- ---------
Within the sales revenue, there was one customer in the United
Kingdom that accounted for greater than 10% of total revenue of the
Group contributing GBP20,197,000 (2022: 2 customers -
GBP24,049,000).
5. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is
calculated by dividing the profit or loss for the year by the
weighted average number of ordinary / diluted ordinary shares in
issue during the period.
2023 2022
------------------------------------------------ ----------- -----------
Profit for the year from continuing operations
- GBP'000 8,515 4,059
Weighted number of ordinary shares in issue 33,388,788 22,204,677
Weighted number of fully diluted ordinary
shares in issue 332,673 147,183
------------------------------------------------- ----------- -----------
Basic earnings per share from continuing
operations - pence 25.50 18.28
Diluted earnings per share from continuing
operations - pence 25.25 18.16
------------------------------------------------- ----------- -----------
Prior to the acquisition, the number of shares is based on
Cenergist Limited. From the date of acquisition, the number of
shares is based on the Company.
6. OPERATING PROFIT
Operating profit from continued operations is stated after
charging / (crediting):
2023 2022
GBP'000 GBP'000
----------------------------------------------- --------- ---------
Depreciation of property, plant and equipment 655 618
Depreciation of right-of-use assets 196 113
Amortisation of fixed assets 573 381
Inventories recognised as an expense - 1
Share based payments 117 -
Exchange differences - (20)
7. TAXATION
2023 2022
GBP'000 GBP'000
The (charge) / credit for year is made up
as follows:
Corporation tax
Corporation taxation on the results for
the year (1,317) (99)
Adjustments in respect of previous periods - 233
(1,317) 134
--------- ---------
Deferred tax
Origination and reversal of temporary differences (183) (336)
Changes to tax rates - -
Adjustments in respect of previous periods 80 194
--------- ---------
(103) (142)
-----------------------------------------------------
Taxation (charge) / credit on profits on
ordinary activities (1,420) (8)
------------------------------------------------------ --------- ---------
Factors affecting tax (charge) / credit for the year
The tax assessed for the year is lower than (2022: lower than)
the standard rate of corporation tax in the UK of 19% (2022: 19%).
The differences are explained below:
2023 2022
GBP'000 GBP'000
-------------------------------------------------- --------- ---------
Profit on ordinary activities before tax 9,935 4,067
--------- ---------
Tax on ordinary activities at the standard
rate of corporation tax in the UK of 19%
(2022: 19%) (1,888) (773)
Effects of:
Expenses not deductible for tax purposes 164 (192)
Additional R&D tax relief 371 371
Adjustments to tax charges in respect to
prior periods(1) 77 429
Losses carried forward not recognised (79) (175)
Effect of profits subject to tax in a previous
period - 352
Tax rate changes (65) (20)
--------- ---------
Taxation charge on profits on ordinary
activities (1,420) (8)
--------------------------------------------------- --------- ---------
There are total tax losses of GBP1,053,000 available for carry
forward against future tax liabilities in the UK and overseas
(2022: GBP649,000). A deferred tax asset has not been recognised on
these losses to the extent that they are expected to be utilised in
future periods.
(1) Primarily relates to the effect of a prior year R&D tax
claim.
8. INTANGIBLE ASSETS
Development Customer
Goodwill Costs Relationships Patents Licences Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- ------------ --------------- --------- --------- ---------
Cost
At 1 February
2021 - - - 370 377 747
Additions 4,369 1,647 671 - 370 7,057
Disposals - - - (36) - (36)
At 31 January
2022 4,369 1,647 671 334 747 7,768
Additions 1,184 444 161 269 - 2,058
Disposals - - - - - -
--------- ------------ --------------- --------- --------- ---------
At 31 January
2023 5,553 2,091 832 603 747 9,826
--------- ------------ --------------- --------- --------- ---------
Amortisation
At 1 February
2021 - - - - 169 169
Charge for the
year - 190 - 41 150 381
--------- ------------ --------------- --------- --------- ---------
At 31 January
2022 - 190 - 41 319 550
Charge for the
year - 356 - 67 150 573
--------- ------------ --------------- --------- --------- ---------
At 31 January
2023 - 546 - 108 469 1,123
--------- ------------ --------------- --------- --------- ---------
Net book value
31 January 2022 4,369 1,457 671 293 428 7,218
--------- ------------ --------------- --------- --------- ---------
31 January
2023 5,553 1,545 832 495 278 8,703
--------- ------------ --------------- --------- --------- ---------
Amortisation of patents commence once they are granted.
Goodwill additions relates to goodwill generated through one
acquisition in the current year and two acquisitions during the
prior year being:
- Acquisition of Mathewson Holdings Limited (July 2022) = GBP1.2m;
- Acquisition of HaGePe International B.V. (June 2021) = GBP4.0m; and
- Acquisition of Welltherm Drilling Limited (September 2021) = GBP0.3m
9. TRADE AND OTHER RECEIVABLES
2023 2022
Group GBP'000 GBP'000
---------------------------------- --------- ---------
Trade receivables 3,492 5,606
Contract assets 459 -
Other debtors 2,352 472
Prepayments and accrued income 22,778 6,189
Tax recoverable 145 122
29,226 12,389
--------- ---------
All trade receivables fall within their due date. Accordingly,
no provisions have been made.
10. BORROWINGS
2023 2022
GBP'000 GBP'000
-------------- --------- ---------
Current 1,469 -
Non-current 4,732 -
6,201 -
--------- ---------
Analysis of maturity of loans is given below:
2023 2022
GBP'000 GBP'000
------------------------------------ --------- ---------
Amounts falling due within one year
Other loans 1,469 -
Amounts falling due 1-2 years
Other loans 1,821 -
Amounts falling due 2-5 years
Other loans 2,911 -
6,201 -
--------- ---------
Other loans relate to a GBP6,000,000 facility provided by HSBC
to Cenergist Limited and a EUR1,500,000 facility provided to
Cenergist Spain SL by Instituto De Finanzas De Castilla-La Mancha
S.A.U. ("CLM") and are secured by fixed and floating charges over
the assets of the Company and by cross guarantees from the
Company's subsidiary undertakings.
Interest on the HSBC facility is at a rate of 3.45% over the
Bank of England Base Rate with the repayment period being 48 months
from date of individual tranche drawdown.
Interest on the CLM facility is at a rate of 3.50% with the
repayment period being 84 months from date of individual tranche
drawdown.
11. RECONCILIATION OF MOVEMENT IN NET DEBT
2023 At 1 February Non-cash At 31 January
2022 changes Cashflow 2023
----------------------------- -------------- --------- --------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank 4,070 - (846) 3,224
Borrowings - current - - (1,469) (1,469)
Borrowings - non-current - - (4,732) (4,732)
Lease liabilities - current
& non-current (191) (1,274) (261) (1,726)
Net Debt 3,879 (1,274) (7,308) (4,703)
----------------------------- -------------- --------- --------- --------------
2022 At 1 February Non-cash At 31 January
2021 changes Cashflow 2022
----------------------------- -------------- --------- --------- --------------
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank 4,284 - (214) 4,070
Borrowings - current (4,081) - 4,081 -
Borrowings - non-current (891) - 891 -
Lease liabilities - current
& non-current (211) (171) 191 (191)
Net Debt (899) (171) 4,949 3,879
----------------------------- -------------- --------- --------- --------------
12. EVENTS SUBSEQUENT TO PERIOD END
On 3 April 2023, Cenergist Spain acquired 100% share capital of
Installatiebedrijf Vriend B.V., a business incorporated in the
Netherlands, for total consideration of EUR0.5 million.
[1] UN Africa Renewal : COP27 outcome: Reflections on the
progress made, opportunities missed, Fazal Issa
[2] IMF : Surging Energy Prices in Europe in the Aftermath of
the War: How to Support the Vulnerable and Speed up the Transition
Away from Fossil Fuels, Anil Ari et al.
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(END) Dow Jones Newswires
May 23, 2023 02:00 ET (06:00 GMT)
Eneraqua Technologies (LSE:ETP)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Eneraqua Technologies (LSE:ETP)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
