Original
RNS Number : 7871Y
Ceres Power Holdings plc
08 March 2017
 

8 March 2017

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Ceres Power Holdings plc

Half-yearly results for the six months ended 31 December 2016

New partners, new markets and a growing international presence - INCLUDING FIRST PRODUCT LAUNCH PARTNER

Ceres Power Holdings plc ("Ceres Power", the "Company" or the "Group") (AIM: CWR.L), a world leading developer of low cost, next generation fuel cell technology, announces its half-yearly results for the six months ended 31 December 2016.

 

Highlights

 

·     New commercial partners including first 'go-to-market' agreement:

Two new development agreements signed in the period, bringing total to four including with Honda, Nissan, Cummins and a further global OEM

First 'go-to-market' agreement signed with global OEM to develop and launch highly efficient combined heat and power ("CHP") product for business markets

 

·     Strong revenue and pipeline: Revenue and other operating income for first half year tripled to £1.5 million (FH1 2016: £0.5m).  Aiming for full year to at least double.  Order book of £4.8 million as at 31 December 2016 and 3 new evaluation agreements underway with potential future partners.

 

·    First significant US commercial success with global power leader Cummins & the US Department of Energy to develop an energy system for Data Centre and commercial scale applications

 

·  New market opportunities enabled by rapid progress in SteelCell technology. The improvements in efficiency, robustness and power density have opened up new high growth power markets in commercial/business sectors

 

·     Successful fundraise: £20m placing enables continued investment in business and technology

 

 

Financial Highlights:

 

Six months ended 31 December 2016 (unaudited)

Six months ended 31 December 2015 (unaudited)

 

£'000

£'000

Total revenue and other operating income, comprising:

1,551

453

Revenue 1

1,026

235

Other operating income

525

218

 

 

 

Operating loss

(6,242)

(6,235)

Equity free cash flow 2

(4,176)

(5,431)

Net cash and short term investments

22,174

12,753

 

1       2016 revenue includes the release of £0.4 million of deferred revenue in respect of contracted work completed for British Gas (2015: £0.1m)

2       Equity free cash outflow (EFCF) is the net change in cash and cash equivalents in the year (£0.2 million) less net cash generated from financing activities (£19.4 million) plus the movement in short term investments (-£15.0 million)

 

Phil Caldwell, CEO of Ceres Power said:

"Ceres Power is on track for an excellent year, driven by new commercial partnerships, the rapid progress of our technology and our first 'go-to market' agreement bringing us closer to a first product launch. We said we would sign five partners by the end of 2017 and with four to date we are on track to do just that, plus we have three new evaluation agreements and a strong pipeline with a series of international prospective partners.

With a forward order book of £4.8 million and a successful fundraising secured, we are in a strong position to capitalise on significant market opportunities. As the world wrestles with the growing challenge of a decarbonising and decentralising energy system, our proven SteelCell™ technology, and our work with global power specialists, shows Ceres Power is capable of providing a cheaper, cleaner, distributed alternative to centralised power generation."

 

For further information please contact:

Ceres Power Holdings plc

Phil Caldwell, CEO

Richard Preston, CFO

Dan Caesar, Communications & Marketing Director

 

+44 (0)1403 273 463

Zeus Capital (Nominated Adviser and Broker)

Phil Walker/Andrew Jones

Hugh Kingsmill Moore

 

+44 (0) 20 3829 5000

Powerscourt

Peter Ogden/Andy Jones

 

+44 (0) 20 7250 1446

About Ceres Power

Ceres Power is a world leader in low cost, next generation fuel cell technology for use in distributed power products that reduce operating costs, lower CO2, SOx and NOx emissions, increase efficiency and improve energy security. The Ceres Power unique patented SteelCell™ technology generates power from widely available fuels at high efficiency and is manufactured using standard processing equipment and conventional materials such as steel, meaning that it can be mass produced at an affordable price for domestic and business use. Ceres Power offer its partners the opportunity to develop power systems and products using its unique SteelCell technology and know-how, combined with the opportunity to supply the SteelCell™ in volume through its manufacturing partners. For further information please visit: http://www.cerespower.com/

 

Chief Executive's statement

Ceres Power is well positioned to continue to execute its strategy as an enabling technology provider for the world's leading power systems companies. The SteelCell™ technology and the Company's expertise have a growing, global reputation and we are on target for an extremely successful year. 

 

The market opportunity - enabling a decarbonised and decentralised energy system

·     Climate change and the need for clean air, reinforced by the Paris COP21 agreement and leading global corporates, is maintaining the momentum towards cleaner distributed power generation

·     The inexorable growth of the Electric Vehicle and Data Centre sectors will increase the demand for electricity and, coupled with increasing wind and solar generation, will destabilise the centralised power generation model 

·     Advancements in Ceres Power's SteelCell™ technology have opened up sector opportunities beyond Residential to include the fast-growing Data Centre, Electric Vehicle and Business sectors

·     SteelCell™ is a significantly superior alternative to conventional gas and diesel engines as it produces close to zero SOx and NOx emissions at a higher efficiency

 

We are working towards a vision of embedding our cutting-edge SteelCell™ technology into world-leading products within the Home, Business, Data Centre and Electric Vehicle markets. Ceres Power has traditionally been focussed on micro-CHP in the Residential market, however significant progress has enabled SteelCell™ to rapidly establish itself as a leader in markets where higher power output is required, significantly expanding the business opportunity. 

The majority of our customer demand is now for larger power systems than our residential scale product offering, and to proportionately address these high value markets, we have started developing larger cells and stacks. 

With a strong start to 2017, the Company is ready to capitalise commercially by securing more key partners, as well as progressing our existing relationships.

 

Commercial Progress

·     First 'go-to-market' agreement signed to develop and launch a highly efficient Combined Heat and Power product to target the business sector

·     First significant US success with agreement to develop a power system for data centres and commercial scale applications

·     Field trials progressing well as part of the EU-funded ene.field programme

In the Autumn, Ceres Power announced its key development role in a recently selected US Department of Energy programme which was awarded to global power leader, Cummins Inc. Together, Ceres Power and Cummins will work closely to develop a power system targeting high electrical efficiency of 60% and scalable to meet multiple distributed power applications. The initial target application will be the fast-growing Data Centre market, this power system will be applicable to other commercial scale uses.

Before the end of 2016, Ceres Power announced a joint development licence agreement to develop and launch a multi-kW CHP product its SteelCell™ technology with a leading global OEM. This is Ceres Power's fourth partnership signed and most notably its first 'go-to-market' agreement with the explicit intention of developing and launching a product to the business sector on an ambitious schedule.  This is a highly significant step.

Furthermore, field trials, as part of the EU-funded ene.field programme in UK homes, demonstrate the growing maturity of this technology and underpin the reputation of the SteelCell™ with our OEM customers.

As a result of this commercial progress, our order book has increased to £4.8m as of 31 December 2016.

 

Rapid technological progress highlights Ceres Power expertise

With a well-established R&D roadmap, real progress with the performance of the technology continues to be made. The most recent milestone saw the latest iteration of the SteelCell™ platform (version 4) released to customers on time and budget, reinforcing the Company's reputation for successfully executing against its technology timelines.

Higher power density and fast start-up timescales have been proven, making the SteelCell™ increasingly commercially attractive in a growing number of markets. The technology is well-suited as a range extender for the Electric Vehicle market and the net electrical efficiencies now being delivered see Ceres Power developing solutions for the Data Centre market.

The core technology is increasingly applicable to customers that require a higher power output and we are now increasing cell size and optimising stack design to meet their requirements.

 

Adding operational capability to position ourselves for commercialization

We have seen a significant increase in customer demand for the SteelCell technology over the past 6 months, particularly for high power applications. This increased demand for our existing SteelCell technology combined with the development of larger cells and stacks for new applications has led to the need for further investment in our manufacturing and test capability.

In the near term, additional demand is being met by increasing manufacturing capacity in Horsham through the addition of a 3rd shift pattern along with bringing through improvements to key process steps.  Beyond this, we are beginning to explore a number of options for further manufacturing scale-up. 

 

Financial progress

As highlighted above, the multiple customer programmes won in the past 12 months are driving our revenues forward.  Compared to the same period last year, we have tripled revenue and other operating income to £1.5 million. We expect this uplift to continue into the full year, where we aim to at least double our revenue and other operating income. It is encouraging that this is being achieved across a growing portfolio of customer programmes.

Our equity free cash outflow of £4.2 million in the period was less than the prior period (£5.4m), mostly due to the Group receiving its R&D tax credit of £2.2m in full (prior period received £0.8m, part of the R&D tax credit, in the period).  Even though we are investing in people and in making the technology more suitable for customers that require a higher power output, as we highlighted in last year's annual report, we expect both our operating loss and our equity free cash outflow for the full year to decrease from the prior year. 

We were very pleased with our £20m fundraise in the period, especially given the uncertain economic conditions in the last 6 months.  At 31 December 2016, the Group had cash and cash equivalents of over £22 million and this financial strength, at a key stage for the Company as we negotiate long term partnerships with a number of the world's leading companies, gives us the runway to further embed our SteelCell™ in customer development and 'go-to-market' programmes.

 

Outlook

Our vision is to embed our cutting-edge SteelCell™ technology into world-leading products within the Home, Business, Data Centre and Electric Vehicle markets.

The leadership team committed itself to signing five global engineering companies as customers in joint development agreements by the end of 2017 and being in two launch programmes with OEM partners by the end of 2018. With four joint development agreements and one launch programme already signed, Ceres Power is ahead of its stated schedule. We expect to secure further commercial partners in due course and to make further progress with our existing partners.

We anticipate that the commercial progress we are making will further drive revenues in the second half of FY 2016/17 and into FY 2017/18.

Ceres Power has a committed, experienced team and we would like to offer our thanks for their continued efforts which we believe will translate into even greater commercial progress over the next 12 months.

 

Philip Caldwell

Chief Executive Officer

 

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 31 December 2016

 

 

 

 

 

Six months ended 31 December

2015 (Unaudited)

 

Year ended 30 June

2016

(Audited)

 

 

 

 

 

 

 

 

 

Six months ended 31 December

2016

(Unaudited)

 

 

 

 

 

 

 

 

Note

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

1,026

 

235

 

1,113

 

 

 

 

 

 

 

 

Cost of sales

 

 

(406)

 

(123)

 

(336)

 

 

 

 

 

 

 

 

Gross profit

 

 

620

 

112

 

777

 

 

 

 

 

 

 

 

Other operating income

 

 

525

 

218

 

555

 

 

 

 

 

 

 

 

Operating costs

2

 

(7,387)

 

(6,565)

 

(14,026)

 

 

 

 

 

 

 

 

Operating loss

 

 

(6,242)

 

(6,235)

 

(12,694)

 

 

 

 

 

 

 

 

Finance income

 

 

30

 

49

 

77

 

 

 

 

 

 

 

 

Loss before taxation

 

 

(6,212)

 

(6,186)

 

(12,617)

 

 

 

 

 

 

 

 

Taxation credit

 

 

1,044

 

698

 

2,157

 

 

 

 

 

 

 

 

Loss for the financial period / year and total comprehensive loss

 

 

 

(5,168)

 

(5,488)

 

(10,460)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses per £0.01 ordinary share expressed in pence per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share

3

 

(0.63)p

 

(0.71)p

 

(1.35)p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All activities relate to the Group's continuing operations and the loss for the financial year is fully attributable to the owners of the parent.

The accompanying notes are an integral part of these consolidated financial statements. 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2016

 

 

31 December 2016 (Unaudited)

 

 

 

30 June 2016

(Audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

31 December 2015 (Unaudited)

 

 

Note

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

2,053

 

2,559

 

2,309

Total non-current assets

 

2,053

 

2,559

 

2,309

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

 

2,071

 

755

 

1,109

Derivative financial instrument

 

14

 

-

 

28

Current tax receivable

 

825

 

1,378

 

1,997

Short-term investments

6

16,000

 

7,000

 

1,000

Cash and cash equivalents

6

6,174

 

5,753

 

5,947

Total current assets

 

25,084

 

14,886

 

10,081

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

(2,217)

 

(2,663)

 

(2,121)

Derivative financial instrument

 

(110)

 

-

 

(7)

Provisions for other liabilities and charges

 

-

 

(77)

 

(78)

Total current liabilities

 

(2,327)

 

(2,740)

 

(2,206)

Net current assets

 

22,757

 

12,146

 

7,875

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Accruals and deferred income

 

-

 

(58)

 

(31)

Provisions for other liabilities and charges

 

(806)

 

(865)

 

(866)

Total non-current liabilities

 

(806)

 

(923)

 

(897)

Net assets

 

24,004

 

13,782

 

9,287

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Share capital

4

10,080

 

7,725

 

7,779

Share premium account

 

107,222

 

90,120

 

90,120

Capital redemption reserve

 

3,449

 

3,449

 

3,449

Other reserve

 

7,463

 

7,463

 

7,463

Accumulated losses

 

(104,210)

 

(94,975)

 

(99,524)

 

 

 

 

 

 

 

Total equity

 

24,004

 

13,782

 

9,287

 

The accompanying notes are an integral part of these consolidated financial statements. 

 

 

CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 31 December 2016

 

 

 

Six months ended 31 December 2015 (Unaudited)

 

 

 

 

 

 

 

 

 

Six months ended 31 December 2016 (Unaudited)

 

 

 

Year ended 30 June 2016

(Audited)

 

 

 

 

Note

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

5

(6,082)

 

(5,310)

 

(11,773)

 

2,216

 

839

 

1,679

Net cash used in operating activities

 

(3,866)

 

(4,471)

 

(10,094)

 

 

 

 

 

 

 

 

 

 

 

 

 

(333)

 

(1,013)

 

(1,302)

 

(15,000)

 

(1,000)

 

5,000

 

30

 

49

 

77

Net cash (used in) / generated from investing activities

 

(15,303)

 

(1,964)

 

3,775

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

20,038

 

-

 

54

 

(635)

 

-

 

-

 

19,403

 

-

 

54

 

 

 

 

 

 

Net increase / (decrease) in cash and cash equivalents

 

234

 

 

(6,435)

 

 

(6,265)

 

Exchange (losses) / gains on cash and cash equivalents

 

(7)

 

 

4

 

 

28

 

 

227

 

(6,431)

 

(6,237)

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

5,947

 

12,184

 

12,184

 

6,174

 

5,753

 

5,947

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 December 2016

 

 

 

Share capital

 

Share premium account

 

 

Capital redemption reserve

 

Other reserve

 

Accumulated losses

 

Total

 

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 July 2015

 

7,725

 

90,120

 

3,449

 

7,463

 

(90,076)

 

18,681

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the financial year

 

-

 

-

 

-

 

-

 

(5,488)

 

(5,488)

Total comprehensive loss

 

-

 

-

 

-

 

-

 

(5,488)

 

(5,488)

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

Issue of shares, net of costs

 

-

 

-

 

-

 

-

 

-

 

-

Share-based payments charge

 

-

 

-

 

-

 

-

 

589

 

589

Total transactions with owners

 

-

 

-

 

-

 

-

 

589

 

589

At 31 December 2015

 

7,725

 

90,120

 

3,449

 

7,463

 

(94,975)

 

13,782

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the financial year

 

-

 

-

 

-

 

-

 

(4,972)

 

(4,972)

Total comprehensive loss

 

-

 

-

 

-

 

-

 

(4,972)

 

(4,972)

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares, net of costs

 

54

 

-

 

-

 

-

 

-

 

54

Share-based payments charge

 

-

 

-

 

-

 

-

 

423

 

423

Total transactions with owners

 

54

 

-

 

-

 

-

 

423

 

477

At 30 June 2016

 

7,779

 

90,120

 

3,449

 

7,463

 

(99,524)

 

9,287

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the financial year

 

-

 

-

 

-

 

-

 

(5,168)

 

(5,168)

Total comprehensive loss

 

-

 

-

 

-

 

-

 

(5,168)

 

(5,168)

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares, net of costs

 

2,301

 

17,102

 

-

 

-

 

-

 

19,403

Share-based payments charge

 

-

 

-

 

-

 

-

 

482

 

482

Total transactions with owners

 

2,301

 

17,102

 

-

 

-

 

482

 

19,885

At 31 December 2016

 

10,080

 

107,222

 

3,449

 

7,463

 

(104,210)

 

24,004

 

The accompanying notes are an integral part of these consolidated financial statements. 

 

 

Notes to the financial statements for the six months ended 31 December 2016

1. Basis of preparation

This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

The consolidated financial statements of the Group are prepared on a going concern basis, in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, the IFRS Interpretations Committee (IFRS-IC) interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared on a historical cost basis except that the following assets and liabilities are stated at their fair value: derivative financial instruments and financial instruments classified as fair value through the profit or loss.

The financial information contained in this interim announcement is unaudited and does not constitute statutory financial statements as defined by in Section 434 of the Companies Act 2006. The financial statements for the year ended 30 June 2016, on which the auditors gave an unqualified audit opinion, have been filed with the Registrar of Companies.

The accounting policies adopted are consistent with those of the financial statements for the year ended 30 June 2016, as described in those financial statements.

After having made appropriate enquiries and in light of the placing which raised £19.4 million net of expenses in October 2016, the Directors have a reasonable expectation that the Group and Company have adequate resources to progress their established strategy for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.

 

2. Operating costs

Six months ended 31 December 2016 (Unaudited)

 

Six months ended 31 December 2015 (Unaudited)

 

Year ended 30 June 2016

(Audited)

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Research and development costs

5,434

 

4,905

 

10,588

Administrative expenses

2,059

 

1,660

 

3,714

 

7,493

 

6,565

 

14,302

Reversal of provision relating to onerous lease and property dilapidations

(106)

 

-

 

(276)

 

7,387

 

6,565

 

14,026

 

3. Loss per share

 

 

 

Six months ended 31 December 2015 (Unaudited)

 

 

Year ended 30 June 2016

(Audited)

 

 

 

 

 

Six months ended 31 December 2016 (Unaudited)

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Loss for the financial period attributable to shareholders

 

(5,168)

 

(5,488)

 

(10,460)

 

 

 

 

 

 

Weighted average number of shares in issue

824,447,210

 

772,537,841

 

773,999,046

 

 

 

 

 

 

Loss per £0.01 ordinary share (basic & diluted)

 

(0.63)p

 

(0.71)p

 

(1.35)p

 

4. Share capital

Ceres Power Holdings plc has called-up share capital totalling 1,008,040,924 £0.01 ordinary shares as at 31 December 2016 (777,857,841 ordinary shares of £0.01 each at 30 June 2016).

During the period 228,603,083 ordinary shares of £0.01 each were issued through a placing on AIM for cash consideration of £20 million. In addition, 1,580,000 ordinary shares of £0.01 each were issued on the exercise of employee share options.

 

5. Cash used in operations

 

Six months ended 31 December 2016 (Unaudited)

 

Six months ended 31 December 2015 (Unaudited)

 

Year ended 30 June 2016

(Audited)

 

 

 

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxation

(6,212)

 

(6,186)

 

(12,617)

Adjustments for:

 

 

 

 

 

Other finance income

(30)

 

(49)

 

(77)

Depreciation of property, plant and equipment

589

 

534

 

1,178

Share-based payments

482

 

589

 

1,012

Net foreign exchange gains/(losses)

7

 

-

 

(49)

Operating cash flows before movements in working capital

(5,164)

 

(5,112)

 

(10,553)

(Increase)/decrease in trade and other receivables

(948)

 

227

 

(134)

Increase/(decrease) in trade and other payables

168

 

(112)

 

(775)

Decrease in provisions

(138)

 

(313)

 

(311)

Increase in working capital

(918)

 

(198)

 

(1,220)

 

 

 

 

 

 

Cash used in operations

(6,082)

 

(5,310)

 

(11,773)

 

6. Net cash, short-term investments and financial assets

 

Six months ended 31 December 2016

(Unaudited)

 

Six months ended 31 December 2015

(Unaudited)

 

Year ended

30 June 2016

(Audited)

 

 

 

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Cash at bank and in hand

3,716

 

1,577

 

805

Money market funds

2,458

 

4,176

 

5,142

Cash and cash equivalents

6,174

 

5,753

 

5,947

 

 

 

 

 

 

Short-term investments (bank deposits > 3 months)

16,000

 

7,000

 

1,000

Net cash and short term investments

22,174

 

12,753

 

6,947

 

 

 

 

 

 

 

The Group typically places surplus funds into pooled money market funds and bank deposits with durations of up to 12 months. The Group's treasury policy restricts investments in short-term sterling money market funds to those which carry short-term credit ratings of at least two of AAAm (Standard & Poor's), Aaa/MR1+ (Moody's) and AAA V1+ (Fitch) and deposits with banks with minimum long-term rating of A/A-/A3 and short-term rating of F-1/A-2/P-2 for banks which the UK Government holds less than 10% ordinary equity.

 

INDEPENDENT REVIEW REPORT TO CERES POWER HOLDINGS PLC 

 
Introduction 

We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 December 2016 which comprises Consolidated statement of profit and loss and other comprehensive income, Consolidated statement of financial position, Consolidated cash flow statement, Consolidated statements of changes in equity  and the related explanatory notes.  We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. 

This report is made solely to the company in accordance with the terms of our engagement.  Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached. 
 
Directors' responsibilities 

The half-yearly report is the responsibility of, and has been approved by, the directors.  The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules. 

The annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU.  The condensed set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU. 

 

Our responsibility 

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review. 

 
Scope of review 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion. 

 

Conclusion 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 December 2016 is not prepared, in all material respects, in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU and the AIM Rules. 

 

James Ledward

for and on behalf of KPMG LLP 

Chartered Accountants 

1 Forest Gate,

Brighton Road, Crawley

RH11 9PT  

8 March 2017

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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