9th Jun 2008 07:00
|
9 June 2008 |
Nviro Cleantech plc
("Nviro" or "the Company")
Interim Results
Nviro Cleantech plc (AIM:NVR), a leader in commercialising clean technologies, is pleased to announce its Interim Results for the six months ended 31 March 2008.
Highlights
Loss before tax of £1.36 million (2007: £1.52 million)
Cash and investment position of £4 million, reflecting prudent use of funds
First commercial revenues expected towards the end of 2008
Significant milestones met in the USA, India and China with Vertus RTP technology:
Agreement for first US coal treatment site signed with Cincinnati Bulk Terminals (March 08) and now under construction (May 08)
Agreement signed by Chinese JV with Shenyang Coal Trade Group (May 08)
Development programme initiated for a lignite / biomass plant in India (October 07)
Completing preliminary design specifications for first commercial Microrelease plant for medium-density fibreboard (MDF) recycling
Laseair and Organotect programmes on schedule with prototypes undergoing testing
Chris Every, CEO of Nviro Cleantech Plc, said: "Our management team has been focused on achieving significant results during the period, with the first Vertus RTP treatment site now under construction in the USA. Sales momentum for Vertus is also accelerating across Asia, with an agreement from a major Chinese coal producer, via our joint venture, for fuel evaluation and testing prior to construction and operation of an initial two Vertus units, and also the start of a development programme in India. Furthermore, we are pleased to emerge from this successful first half with our broader portfolio of technologies on track and underpinned by a net cash position of £4 million - signalling conservative and cost-effective deployment of the funds raised in the IPO last year."
- ENDS -
For further information:
|
Nviro Cleantech plc |
|
|
Chris Every, Chief Executive Officer |
Tel: +44 (0) 20 7451 2473 |
|
www.nvirocleantech.com |
|
Grant Thornton Corporate Finance - Nominated Adviser |
|
|
Fiona Owen |
Tel: +44 (0) 20 7383 5100 |
|
www.grantthornton.co.uk |
|
Fairfax I.S. PLC Broker |
|
|
Ewan Leggat |
Tel: +44 (0) 20 7598 5368 |
|
www.fairfaxplc.com |
Media enquiries:
|
Abchurch Communications Limited |
www.abchurch-group.com |
|
Justin Heath / Monique Tsang |
Tel: +44 (0) 20 7398 7712 |
Chief Executive's Statement
Review of Activities
Group development has continued apace in the first half of the year, culminating in further significant progress with the Vertus reductive thermal process technology ("Vertus RTP"), following our first contract to install a coal cleansing plant in the US market.
We continue to follow the strategy of developing each technology to be a sustainable, independent business in their respective markets. The period has seen all of the projects take steps towards that goal, both from a technical and commercial standpoint.
We have also developed further key external relationships for each business which address the needs for technical and commercial exploitation. In particular, the Vertus and Microrelease projects have seen increased activity in this area as they have respectively entered, and are approaching launch to market.
Vertus Technologies
The primary focus of the Group, in the half-year, centred on the market development of the Vertus RTP technology.
In the North American market the announcement of our contract with Cincinnati Bulk Terminals LLC ("CBT") for a 25 year agreement, to treat fuels for industrial customers in the Cincinnati tri-state region, provided the most significant news. During March, work commenced on establishing the necessary resources for the site and on the acquisition of equipment for a Vertus Technologies, North American fuel-testing facility, adjacent to the CBT site on the Ohio River. We have already embarked on testing sample materials and commenced plant specification for potential customers. This has been followed, in May, by the start of construction at our CBT installation.
Moreover, the first half saw marketing activity throughout the US being very well received, particularly by the coal users amongst the 60-plus generating companies represented at the Atlanta Generation Summit for the American power industry in February 2008. Power generation and biomass opportunities are now under negotiation in both the US and Canada. In order to support the increasing workload, key individuals have been added to the team in business development, project management and engineering.
The Group also made a number of visits to the Asian markets to progress activity in China and India. This investment in marketing activity is now enabling Vertus to meet its primary objective to secure the equivalent of four standard-size Vertus RTP modules, representing 200,000 tonnes of capacity, committed to sites by the end of 2008.
During this six month period we initiated a development programme with CLP Power India Private Limited to install a combined lignite and biomass plant. Shortly after the end of this reporting period, in May 2008, the joint venture established by Vertus in China during 2007 signed a fuel evaluation and testing agreement with Shenyang Coal Trade Group (SCTG) that includes a commitment to two further installations.
Beyond India and China we have also seen the benefit of publicity and increased awareness in the Asian market with enquiries for the technology emanating from areas such as Indonesia, Malaysia and Thailand, amongst others.
The carbon ignition system, being developed by Vertus to burn pure carbon derived from biomass, is the subject of outsource research contracts and is presently undergoing some changes in technology focus to align it more closely with the market demand seen in Asia in particular.
Microrelease Limited
Following the successful verification of the core technology by outside contractors, the company is now completing the preliminary design specifications for the first commercial plant. Further successful development activity, stemming from our participation in the Waste & Resources Action Programme on recycling applications for wood fibre, have corroborated the suitability of incorporating recycled fibres in the production of a number of products, including virgin MDF board and composite materials for the construction industry. The second half of the year will see the project continuing towards commercialisation in an industrial environment for the first full-scale plant.
Follow-on Technologies
Laseair prototypes are under construction ahead of being placed on test in field trials.
Organotect prototypes are being tested and operating software is being tailored to meet design performance specifications.
Nviro Cleantech Corporate Development
The Company will continue through the year to develop its structure by the selective appointment of key people to roles in the commercialisation of the leading projects, but we will retain the policy of accumulating minimal overhead infrastructure. The flexibility we have developed in this style of working has proven to be invaluable, whilst vigilance in the selection and use of support service resources has helped us to sustain this structure.
The allocation of resources and the relative value added to each business is under constant review, with the objective of being flexible in our approach to the structure of the group that can best deliver shareholder value in the future.
Results
During the six months ended 31 March 2008 the group reported a pre-tax loss of £1.36m and this translates into a loss per share of 3.09p. Cash balances at the end of the period were £4.0m (September 2007: £5.93m).
Outlook
We are well positioned to take advantage of the growing requirement to tackle the emission of hazardous air pollutants from coal-fired power stations. The first half of our financial year marked a significant milestone in the evolution of the group with the award of our first commercial contract for our Vertus RTP technology. This is expected to lead to Nviro Cleantech's first commercial revenues towards the end of 2008. We also expect to receive two more commitments for Vertus RTP units this year, derived from our extensive marketing efforts in the US, China, India and other Far Eastern countries. Hence we view the future with confidence.
Chris Every
Chief Executive
June 2008
CONSOLIDATED INCOME STATEMENT
For the six months ended 31 March 2008
|
Continuing Operations |
Notes |
6 months ended 31 March 2008 £'000 Unaudited |
6 months ended 31 March 2007 £'000 Unaudited |
12 months ended 30 September 2007 £'000 Audited |
|
|
Research expenses |
(263) |
(628) |
(2,124) |
||
|
Administrative expenses |
(1,264) |
(914) |
(2,111) |
||
|
Other operating income |
76 |
- |
- |
||
|
|
|
|
|||
|
OPERATING LOSS |
(1,451) |
(1,542) |
(4,235) |
||
|
Finance income |
96 |
27 |
40 |
||
|
|
|
|
|||
|
LOSS BEFORE TAX |
(1,355) |
(1,515) |
(4,195) |
||
|
Tax |
- |
- |
- |
||
|
|
|
|
|||
|
LOSS FOR THE FINANCIAL PERIOD |
(1,355) |
(1,515) |
(4,195) |
||
|
|
|
|
|||
|
Basic and diluted loss per share |
5 |
(3.09)p |
(5.84)p |
(13.81)p |
|
|
|
|
|
|||
CONSOLIDATED BALANCE SHEET
As at 31 March 2008
|
Notes |
31 March 2008 £'000 Unaudited |
31 March 2007 £'000 Unaudited |
30 September 2007 £'000 Audited |
||
|
ASSETS |
|||||
|
NON-CURRENT ASSETS |
|||||
|
License fees |
6 |
975 |
- |
1,028 |
|
|
Development costs |
6 |
554 |
- |
- |
|
|
Property, plant & equipment |
7 |
427 |
- |
35 |
|
|
|
|
|
|||
|
TOTAL NON-CURRENT ASSETS |
1,956 |
- |
1,063 |
||
|
CURRENT ASSETS |
|||||
|
Other receivables |
33 |
139 |
385 |
||
|
Cash and cash equivalents |
8 |
4,031 |
1,650 |
5,962 |
|
|
|
|
|
|||
|
TOTAL CURRENT ASSETS |
4,064 |
1,789 |
6,347 |
||
|
TOTAL ASSETS |
6,020 |
1,789 |
7,410 |
||
|
LIABILITIES |
|||||
|
CURRENT LIABILITIES |
|||||
|
Trade and other payables |
(836) |
(717) |
(935) |
||
|
Bank overdraft and loans |
8 |
(30) |
- |
(30) |
|
|
|
|
|
|||
|
TOTAL CURRENT LIABILITIES |
(866) |
(717) |
(965) |
||
|
TOTAL LIABILITIES |
(866) |
(717) |
(965) |
||
|
|
|
|
|||
|
NET ASSETS |
5,154 |
1,072 |
6,445 |
||
|
|
|
|
|||
|
EQUITY |
|||||
|
Called up share capital |
44 |
29 |
44 |
||
|
Share premium reserve |
6,582 |
3,288 |
6,582 |
||
|
Merger reserve |
4,585 |
- |
4,585 |
||
|
Share based payment reserve |
350 |
127 |
286 |
||
|
Translation reserve |
- |
- |
- |
||
|
Retained earnings |
(6,407) |
(2,372) |
(5,052) |
||
|
|
|
|
|||
|
EQUITY ATTIBUTABLE TO EQUITY HOLDERS OF THE PARENT |
5,154 |
1,072 |
6,445 |
||
|
|
|
|
|||
|
Minority Interest |
12 |
- |
- |
- |
|
|
|
|
|
|||
|
TOTAL EQUITY |
5,154 |
1,072 |
6,445 |
||
|
|
|
|
|||
CONSOLIDATED CASHFLOW STATEMENT
For the six months ended 31 March 2008
|
Notes |
6 months ended 31 March 2008 £'000 Unaudited |
6 months ended 31 March 2007 £'000 Unaudited |
12 months ended 30 September 2007 £'000 Audited |
|
|
OPERATING ACTIVITIES |
||||
|
Net cash (outflow) from operations |
9 |
(1,063) |
(761) |
(4,165) |
|
|
|
|
||
|
NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES |
(1,063) |
(761) |
(4,165) |
|
|
|
|
|
||
|
INVESTMENT ACTIVITIES |
||||
|
Finance income |
96 |
27 |
40 |
|
|
Purchase of intangible assets |
(555) |
- |
(1,054) |
|
|
Purchase of property, plant and equipment |
(409) |
- |
(36) |
|
|
|
|
|
||
|
NET CASH (OUTFLOW) / INFLOW FROM INVESTING ACTIVITIES |
(868) |
27 |
(1,050) |
|
|
|
|
|
||
|
FINANCING ACTIVITIES |
||||
|
Proceeds from issue of shares |
- |
2,628 |
12,362 |
|
|
Costs on issue of shares |
- |
(244) |
(1,215) |
|
|
|
|
|
||
|
NET CASH INFLOW FROM FINANCING ACTIVITIES |
- |
2,384 |
11,147 |
|
|
|
|
|
||
|
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS |
(1,931) |
1,650 |
5,932 |
|
|
Cash and equivalents at beginning of period |
5,932 |
- |
- |
|
|
|
|
|
||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
4,001 |
1,650 |
5,932 |
|
|
|
|
|
||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March 2008
|
Share Capital £'000 |
Share Premium £'000 |
Merger Reserve £'000 |
Share Based Payment Reserve £'000 |
Translation Reserve £'000 |
Retained Earnings £'000 |
Total Equity £'000 |
|
|
As at 30 September 2006 (Unaudited) |
21 |
- |
- |
14 |
19 |
(857) |
(803) |
|
Loss for the 6 month period |
- |
- |
- |
- |
- |
(1,515) |
(1,515) |
|
|
|
|
|
|
|
|
|
|
Total recognised income and expense |
- |
- |
- |
- |
- |
(2,372) |
- |
|
Foreign currency translation |
- |
- |
- |
- |
(19) |
- |
(19) |
|
Issue of share capital (net of issue expenses) |
8 |
3,288 |
- |
- |
- |
- |
3,296 |
|
Share based payment charge |
- |
- |
- |
113 |
- |
- |
113 |
|
|
|
|
|
|
|
|
|
|
As at 31 March 2007 (Unaudited) |
29 |
3,288 |
- |
127 |
- |
(2,372) |
1,072 |
|
Loss for the 6 month period |
- |
- |
- |
- |
- |
(2,680) |
(2,680) |
|
|
|
|
|
|
|
|
|
|
Total recognised income and expense |
- |
- |
- |
- |
- |
(5,052) |
- |
|
Issue of share capital (net of issue expenses) |
4 |
3,294 |
- |
- |
- |
- |
3,298 |
|
Issue of share capital |
11 |
- |
4,585 |
- |
- |
- |
4,596 |
|
Share based payment charge |
- |
- |
- |
159 |
- |
- |
159 |
|
|
|
|
|
|
|
|
|
|
As at 30 September 2007 (Audited) |
44 |
6,582 |
4,585 |
286 |
- |
(5,052) |
6,445 |
|
Loss for the 6 month period |
- |
- |
- |
- |
- |
(1,355) |
(1,355) |
|
|
|
|
|
|
|
|
|
|
Total recognised income and expense |
- |
- |
- |
- |
- |
(6,407) |
- |
|
Share based payment charge |
- |
- |
- |
64 |
- |
- |
64 |
|
|
|
|
|
|
|
|
|
|
As at 31 March 2008 (Unaudited) |
44 |
6,582 |
4,585 |
350 |
- |
(6,407) |
5,154 |
|
|
|
|
|
|
|
|
NOTES TO THE INTERIM REPORT
For the six months ended 31 March 2008
Nviro Cleantech plc is a company incorporated in the Isle of Man under the provisions of the Companies Acts 1931 to 2004. The address of the registered office is Burleigh Manor, Peel Road, Douglas, Isle of Man IM1 5EP.
Copies of the interim statement maybe obtained from the above address or the investors' section of the Company's website.
These interim consolidated financial statements are for the six months ended 31 March 2008. The interim financial report, which is unaudited, has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS"). The accounting policies and methods of computation used are consistent with those used in the Group annual report for the year ended 30 September 2007 and are expected to be used in the Group Annual Report for the year ended September 2008.
The financial information for the year ended 30 September 2007 does not constitute statutory information. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on these accounts was not qualified and did not contain statements under section 15(4) or (6) of the Companies Act 1982.
The interim consolidated financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the group operates. All values are rounded to the nearest thousand pounds (£'000) except when otherwise stated.
The six months to March 2008 has seen the first capitalisation of development costs. These costs are amortised when the assets become 'available for use'.
|
4 |
SEGMENTAL REPORTING |
Vertus £'000 |
Microrelease £'000 |
Laseair £'000 |
Carbon Burner £'000 |
Organotect* £'000 |
Unallocated £'000 |
Total £'000 |
|
6 months ended 31 March 2008 (Unaudited) |
||||||||
|
Revenue |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|||
|
Segment result |
(337) |
(59) |
(68) |
- |
(30) |
(957) |
(1,451) |
|
|
Finance income |
96 |
|||||||
|
|
||||||||
|
Loss before and after tax |
(1,355) |
|||||||
|
|
||||||||
|
Segment assets |
1,399 |
179 |
173 |
- |
186 |
4,083 |
6,020 |
|
|
Segment liabilities |
(106) |
(76) |
(75) |
(338) |
- |
(271) |
(866) |
|
|
Capital additions |
473 |
142 |
154 |
- |
191 |
2 |
962 |
|
|
Depreciation |
59 |
3 |
7 |
- |
- |
- |
69 |
|
|
|
|
|
|
|
|
|||
|
6 months ended 31 March 2007 (Unaudited) |
||||||||
|
Revenue |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|||
|
Segment result |
(33) |
(99) |
(12) |
(353) |
(118) |
(927) |
(1,542) |
|
|
Finance income |
27 |
|||||||
|
|
||||||||
|
Loss before and after tax |
(1,515) |
|||||||
|
|
||||||||
|
Segment assets |
- |
- |
- |
- |
- |
1,789 |
1,789 |
|
|
Segment liabilities |
(32) |
(3) |
(15) |
(246) |
(5) |
(416) |
(717) |
|
|
Capital additions |
- |
- |
- |
- |
- |
- |
- |
|
|
Depreciation |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|||
|
Vertus £'000 |
Microrelease £'000 |
Laseair £'000 |
Carbon Burner £'000 |
Organotect* £'000 |
Unallocated £'000 |
Total £'000 |
||
|
Year ended 30 September 2007 (Audited) |
||||||||
|
Revenue |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
||
|
Segment result |
(646) |
(155) |
(209) |
(933) |
(312) |
(1,980) |
(4,235) |
|
|
Finance income |
40 |
|||||||
|
|
||||||||
|
Loss before and after tax |
(4,195) |
|||||||
|
|
||||||||
|
Segment assets |
983 |
71 |
56 |
157 |
- |
6,143 |
7,410 |
|
|
Segment liabilities |
(75) |
(51) |
(98) |
(347) |
(16) |
(378) |
(965) |
|
|
Capital additions |
1,004 |
50 |
33 |
- |
- |
3 |
1,090 |
|
|
Depreciation |
21 |
5 |
1 |
- |
- |
- |
27 |
|
|
|
|
|
|
|
|
|
||
*Organotect is the development of a field portable micro-fluidics plasma detection system, allowing the rapid analysis of hazardous chemicals in the air.
5 LOSS per share
Basic loss per share of 3.09p (31 March 2007 - 5.84p loss per share) is based on the loss for the financial year of £1,355,000 (31 March 2007 - £1,515,000 loss) and on 43,822,959 (31 March 2007 - 25,945,408) ordinary shares being the weighted average number of shares in issue throughout the period. As there is a loss for the year there is no difference between the basic and diluted loss per share.
|
6 |
INTANGIBLE ASSETS |
Licence fees £'000 |
Development costs £'000 |
Total £'000 |
|
Cost: |
||||
|
At 30 September 2006 |
- |
- |
- |
|
|
Additions |
- |
- |
- |
|
|
|
|
|
||
|
At 31 March 2007 |
- |
- |
- |
|
|
Additions |
1,054 |
- |
1,054 |
|
|
|
|
|
||
|
At 30 September 2007 |
1,054 |
- |
1,054 |
|
|
Additions |
- |
554 |
554 |
|
|
|
|
|
||
|
At 31 March 2008 |
1,054 |
554 |
1,608 |
|
|
|
|
|
||
|
Amortisation: |
||||
|
At 30 September 2006 |
- |
- |
- |
|
|
Charge for the period |
- |
- |
- |
|
|
|
|
|
||
|
At 31 March 2007 |
- |
- |
- |
|
|
Charge for the period |
26 |
- |
26 |
|
|
|
|
|
||
|
At 30 September 2007 |
26 |
- |
26 |
|
|
Charge for the period |
53 |
- |
53 |
|
|
|
|
|
||
|
At 31 March 2008 |
79 |
- |
79 |
|
|
|
|
|
||
|
Net Book Value: |
||||
|
31 March 2007 |
- |
- |
- |
|
|
|
|
|
||
|
30 September 2007 |
1,028 |
- |
1,028 |
|
|
|
|
|
||
|
31 March 2008 |
975 |
554 |
1,529 |
|
|
|
|
|
||
|
7 |
PROPERTY PLANT AND EQUIPMENT |
Assets in the course of construction £'000 |
Plant & Machinery £'000 |
Computer equipment £'000 |
Total £'000 |
|
Cost: |
|||||
|
At 30 September 2006 |
- |
- |
- |
- |
|
|
Additions |
- |
- |
- |
- |
|
|
|
|
|
|
||
|
At 31 March 2007 |
- |
- |
- |
- |
|
|
Additions |
- |
33 |
3 |
36 |
|
|
|
|
|
|
||
|
At 30 September 2007 |
- |
33 |
3 |
36 |
|
|
Additions |
396 |
10 |
2 |
408 |
|
|
|
|
|
|
||
|
At 31 March 2008 |
396 |
43 |
5 |
444 |
|
|
|
|
|
|
||
|
Depreciation: |
|||||
|
At 30 September 2006 |
- |
- |
- |
- |
|
|
Charge for the period |
- |
- |
- |
- |
|
|
|
|
|
|
||
|
At 31 March 2007 |
- |
- |
- |
- |
|
|
Charge for the period |
- |
1 |
- |
1 |
|
|
|
|
|
|
||
|
At 30 September 2007 |
- |
1 |
- |
1 |
|
|
Charge for the period |
8 |
7 |
1 |
16 |
|
|
|
|
|
|
||
|
At 31 March 2008 |
8 |
8 |
1 |
17 |
|
|
|
|
|
|
||
|
Net Book Value: |
|||||
|
31 March 2007 |
- |
- |
- |
- |
|
|
|
|
|
|
||
|
30 September 2007 |
- |
32 |
3 |
35 |
|
|
|
|
|
|
||
|
31 March 2008 |
388 |
35 |
4 |
427 |
|
|
|
|
|
|
||
|
8 |
CASH AND CASH EQUIVALENTS |
6 months ended 31 March 2008 £'000 Unaudited |
6 months ended 31 March 2007 £'000 Unaudited |
12 months ended 30 September 2007 £'000 Audited |
|
Cash and cash equivalents per balance sheet |
4,031 |
1,650 |
5,962 |
|
|
Bank overdrafts |
(30) |
- |
(30) |
|
|
|
|
|
||
|
Cash and cash equivalents per cash flow statement |
4,001 |
1,650 |
5,932 |
|
|
|
|
|
|
9 |
NOTES TO THE CASHFLOW STATEMENT |
6 months ended 31 March 2008 £'000 Unaudited |
6 months ended 31 March 2007 £'000 Unaudited |
12 months ended 30 September 2007 £'000 Audited |
|
LOSS FOR THE FINANCIAL PERIOD |
(1,355) |
(1,515) |
(4,195) |
|
|
Adjustments for: |
||||
|
Finance Income |
(96) |
(27) |
(40) |
|
|
Depreciation of property plant and equipment |
17 |
- |
1 |
|
|
Amortisation of intangible assets |
53 |
- |
26 |
|
|
Share based payment expense |
64 |
113 |
316 |
|
|
Effect of foreign exchange fluctuations |
- |
(19) |
- |
|
|
Operating cashflows before movements in working capital |
(1,317) |
(1,448) |
(3,892) |
|
|
Changes in working capital |
||||
|
Decrease / (Increase) in other receivables |
352 |
(139) |
(385) |
|
|
(Decrease) / Increase in trade and other payables |
(98) |
826 |
112 |
|
|
|
|
|
||
|
Cash generated by Operations |
(1,063) |
(761) |
(4,165) |
|
|
|
|
|
The Directors are unable to recommend the payment of a dividend.
The Group is currently in a dispute with a supplier regarding the amount of monies due to them by the Group. There is a significant difference in perception between the two parties valuations of how much monies are due. The directors believe that sufficient liabilities have been included within these interim results to cover all monies that may become due.
Equity attributable to the minority interest is £Nil at 31 March 2008, 30 September 2007 and 31 March 2007, as the minority does not have a binding obligation to make additional investment to cover the losses of the group. There are net liabilities in the relevant companies.
These interim consolidated financial statements (unaudited) were approved by the Board of Directors on 6 June 2008.
- Ends -
Related Shares:
HAYT.L