SulNOx Group PLC Trading Statement (7858J)
15 April 2020 - 5:13PM
UK Regulatory
TIDMSNOX
RNS Number : 7858J
SulNOx Group PLC
15 April 2020
SulNOx Group Plc
Trading Update
(Aquis Stock Exchange: SNOX)
15 April 2020
SulNOx Group Plc ("SulNOx" or the "Company"), the hydrocarbon
fuel emulsification specialist, announces a trading update for the
year ended 31(st) March 2020.
SulNOx successfully debuted on the Aquis Stock Exchange Growth
Market (name changed from the NEX Exchange) on 17(th) December 2019
raising gross proceeds of GBP185,000 at 50p per share. This enabled
the Company to proceed with its plans to advance discussions with a
number of companies across a variety of sectors which had been
identified as being bulk users of Diesel and Heavy Fuel Oil (HFO)
and potentially in search of solutions to reduce toxic exhaust
emissions, save fuel and reduce engine maintenance.
During January 2020, the Company was delighted to present its
proprietary technology for maritime applications at a meeting
organised by the South African Institute of Marine Engineers and
Naval Architects (SAIMENA). The technology was positively received
which reinforced the directors' belief that SulNOx can provide a
preferred solution for ships needing to reduce sulphurous emissions
and particulate matter, other than through the installation of
expensive exhaust scrubbers or converting to the much more
expensive low-sulphur HFO.
A similar system has been developed for deployment in coal-fired
power stations which use substantial quantities of HFO as part of
the fuel ignition process. The SulNOx delivery system is perfectly
suited to power stations with their relatively simple combustion
system and the anticipated benefits could be substantial.
In terms of these bulk users of HFO, the Company had been in
discussions with a shipping company and a company with fossil fuel
power station interests. Unfortunately, progress has been markedly
slower than anticipated to bring these discussions to fruition and,
in February, the Board decided to broaden its marketing efforts to
other potential customers.
The Company's second product, a Diesel conditioner, works
without the need to add additional water and is aimed at large
scale Diesel users.
The board had anticipated selling this product through a major
UK fuel distributor but this is taking longer to conclude than
envisaged. The barrier appears to be a reluctance by transport
operators to become the first-user. The directors have determined
that one solution to unlock this reticence is to commit to engine
trials in cooperation with specific engine manufacturers and
advancements have been made and negotiations continue, with a group
of transport companies. To this end, negotiations to commence
static engine trials have started with two globally recognised
engine manufactures.
In Africa where diesel with heightened levels of sulphur remains
the primary fuel, the SulNOx conditioner may have significant
environmental benefits in addition to expected fuel savings and to
this end the Company, through its regional distributor, is making
good progress introducing the product to a variety of customer
groups.
The COVID-19 outbreak has led to a delay to the engine trial
discussions and certain other marketing initiatives due to the
Company's inability to freely move staff and equipment. This
unprecedented event and resulting lack of visibility has led the
board to take an even more prudent approach to the Company's
operations and cash preservation. A further announcement will be
made in relation to this position once clarity is restored,
Notwithstanding all of the above, the Directors remain confident
about the efficacy of the Company's technology and methodology. The
Company continues to be active in marketing and promoting the
benefits of its products to customers.
In other developments; the Company has submitted its patent
application to include worldwide PCT (Patent Cooperation Treaty)
application and it is recognised that this process will require a
number of years to conclude. In addition during the period the
Company entered into agreements with customer, distribution and
business development companies in the United Kingdom and abroad and
the directors remain confident of the opportunities ahead.
Enquiries:
SulNOx Group Plc : info@sulnoxgroup.com
Nicholas Nelson, Chief Executive
Aquis Stock Exchange Corporate Adviser:
Alexander David Securities Limited +44 (0) 20 7448 9820
-----------------------
David Scott - Corporate Finance, James Dewhurst - Corporate
Broking
The directors take responsibility for this announcement.
About SulNOx Group Plc
SulNOx, www.sulnoxgroup.com , has developed a hydrocarbon fuels
conditioning and emulsifying process which enables more efficient
fuel combustion, potentially leading to reduced fuel consumption
and significantly lowered emissions.
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END
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