TIDMSNOX
RNS Number : 2480X
SulNOx Group PLC
25 August 2022
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. The directors take
responsibility for this announcement.
25 August 2022
SulNOx Group Plc (the "Company" or "SulNOx")
Final Results and Audited Annual Report and Accounts for the
Year to 31 March 2022
Notice of Annual General Meeting
(Aquis Stock Exchange: SNOX)
Final Results
The Board of Directors of SulNOx is pleased to announce the
publication of the audited annual report and accounts for the year
to 31 March 2022 (the "Annual Report").
The Annual Report will be published on the Company's website in
compliance with its articles of association and the electronic
communications provisions of the Companies Act 2006. A copy of the
Annual Report can also be accessed through the link below.
Annual Report
http://www.rns-pdf.londonstockexchange.com/rns/2480X_1-2022-8-25.pdf
Key extracts from the Annual Report can also be viewed
below.
Ben Richardson, CEO, commented, "You will see from the below
statements that SulNOx is at an inflexion point - revenues are
developing rapidly as sales cycles complete or shorten dramatically
and new sales organisations make their first orders following
impressive evaluation results. Whereas we supplied product free of
charge for evaluations at the start of the financial year, most are
now paid for and expanding across multiple industries and
geographies.
Having talked to prospective clients and reviewed the
marketplace over the last 12 months, it is clear that there is no
other viable energy transition stock which can make such immediate
impacts on fuel consumption and emissions reductions. There are no
other products with the full gambit of mechanisms, no others which
have the green credentials to satiate the demand for ESG and Green
solutions by the world's largest consumers of fossil fuels.
Every day we now have incoming enquires, sales are made on
Amazon or directly on our website and we fully expect SulNOx sales
to continue to build rapidly and be monthly cash-flow positive by
the end of next year, knowing that in reality only 1 meaningful
order from the >1,000 prospective clients in the pipeline could
achieve this and more at any time before then. "
Notice of Annual General Meeting
The Company's Annual General Meeting for the year ending 31
March 2022 will be held at 12 noon on 20 September 2022 at the
Groucho Club, 45 Dean Street, Soho, London W1D 4QB (the "AGM"). The
notice of the AGM will be posted to shareholders today and a copy
will be added to the Company's website,
https://sulnoxgroup.com/investors/ .
Any shareholders who wish to attend should RSVP to
accounts@sulnoxgroup.com at least 48 hours in advance as the venue
requires details of attendees.
In keeping with the Company's green ethos, and in accordance
with the provisions of the Company's articles of association, this
year we are sending only the required "NOTICE OF ANNUAL GENERAL
MEETING" by post, whilst the annual report and audited financial
statements will posted on the SulNOx website (
https://sulnoxgroup.com/investors/ ).
Modified Audit Report and Quarterly Management Statement
Extract from the Independent Auditor's Report - Conclusions
relating to going concern
" We draw your attention to page 6 of the financial statements
which indicates that the Group's ability to continue as a going
concern is reliant on meeting its forecast sales and if these are
not met, are dependent on raising additional finance. As stated in
page 6, these conditions, along with other matters set out in note
page 6 indicate a material uncertainty exists that may cast
significant doubt on the group and the parent company's ability to
continue as a going concern. Our opinion is not modified in respect
of this matter.
We identified going concern as a key audit matter based on our
assessment of the significance of the risk and effect on our audit
strategy ."
In accordance with AQSE Apex Rule 4.3, the Company provides the
following Quarterly Management Statement:
-- A Trading Update covering the quarter to 30 June 2022, was
announced on 30 June 2022 and can be viewed on the Company's
website;
-- As stated in Note 29 of the Annual Report, there were no
significant balance sheet events in the quarter to 30 June 2022;
and
-- Group cash balances as at 30 June 2022 were GBP603,904.
- Ends -
For further information please contact:
SulNOx Group plc steven.cowin@sulnoxgroup.com
Steven Cowin, Director
Allenby Capital Limited Tel: 020 3328 5656
(AQSE Corporate Adviser)
Nick Harriss / John Depasquale
Chairman's Statement
2022 has been in many ways an extraordinary year. The war in
Ukraine, the slowdown of the pandemic (not the end) and
sky-rocketing energy prices which have led to inflationary pressure
not seen in over 40 years. While these combined events have added
challenges to SulNOx's business plans, they have not deterred us
from achieving our 2022 full year plan.
As non-executive Chair of your board, I am acutely aware of the
surrounding business challenges and together with the board, remain
confident that the plans that we set out to accomplish have for the
most part been achieved. Our priorities were and remain, weathering
the issues we inherited from the former management team and placing
the Company into a position where it can convert contacts into
sales. Specifically, putting together a tightly knit management
team, the implementation of proper corporate governance, initiation
of product trials with qualified clients and redefining the
company's positioning and product targeting industry and the
general public was from the outset our main goal. The entire board
was unanimous in its support of this action plan which I believe
has now clearly established a solid footing for us to capitalize
and convert sales from the multiple evaluations now underway.
The energy squeeze in Europe and the recent, extraordinary
passage of carbon tax legislation in the United States also provide
a tremendous opportunity for SulNOx as companies, government and
institutions reconsider all options to reduce their carbon
footprint, improve fuel efficiency and blunt the impact of rising
energy costs for households on all seven continents across the
globe. We have the right product, an expanding network of potential
customers and with the current management team to execute our plan,
SulNOx is gaining momentum.
Having now sold product in 17 countries worldwide and to around
90 clients in the first 4 months of 2023, I believe we are at the
"knee of the revenue curve". New evaluations are now paid for by
clients and several are ongoing with major global companies,
reassured by certification from Bureau Veritas, Lloyds Register and
Hochschule Wismar University, to name a few. Rising sales from an
expanding worldwide ISO (Independent Sales Organisation) and
introducer base of c. 60 demonstrate our commitment to becoming a
significant and successful part of the energy transition from
fossil fuel to a reduced carbon emission world and we are proud of
our current positioning within this fast paced and critical
sector.
That being said, it will likely take time and potential
additional investment to bridge the gap between the final stages of
client product evaluations and ultimate sales, but we remain
focused and committed to converting our current and growing
pipeline into revenue and ultimately shareholder value. To
underscore our commitment, we have recently made significant budget
cuts to reflect the delayed projected sales target, however, we
have not compromised the effectiveness of the team nor its ability
to execute our plan.
There remains still much hard work ahead as we enter the next
phases of our project development, but we move forward encouraged
and emboldened by the feedback from our clients, the market and
industry experts and by our progress and shareholder support to
date. This journey will still require patience and we are confident
that over time, SulNOx will be a more valuable company for its
shareholders and bring a wider benefit to the society that we live
in.
I would like to thank the executive team Ben Richardson, Steven
Cowin, the entire SulNOx board for their leadership and the hard
work throughout this difficult year and I am grateful for the
continued support from the shareholders who are acutely aware of
the steps that we have taken to ensure SulNOx's success moving
forward.
I look forward to working together in 2023.
Radu Florescu - Chairman
Extract from Strategic Report
Business review
The Statement of Comprehensive Income and Statement of Financial
Position for the year are set out on pages 21 and 22 respectively.
A review of developments affecting the Company during the year and
of its prospects for the future appear in the Chairman's Statement
on page 2.
Whilst the Group is now selling regularly to retail and
corporate customers, at the time of this report sales were largely
limited to small volumes for client evaluations, therefore has low
revenues to report for the current year. During the year ended 31
March 2022, the net increase in cash in the period was GBP1,023,117
(2021 decrease: GBP45,463) resulting in cash and cash equivalents
as at 31 March 2022 of GBP1,065,388 (2021: GBP42,271).
Key performance indicators
The Key Performance Indicators ("KPIs") for the Company are
listed as follows:
2022 2021
GBP
Earnings/(loss) per share (2.16) pence (0.96) pence
During 2022, the Company matured significantly. Whilst sales
nearly doubled from GBP17.9k in 2021 to GBP33.5K, 2021 was
predominantly about putting the pieces in place for significant
growth in 2023. Some of the key highlights included:
-- The Board was shuffled with the move of Radu Florescu from
CEO to Non-Executive Chairman and Ben Richardson from COO to CEO
and strengthened with key hires of Steven Cowin (CFO) and Lord
Nicholas Fairfax as Non-Executive Director and head of marine
business;
-- SulNOx met the criteria and was appointed to the Apex, Top Tier of the Aquis Growth Market;
-- Patent approvals were sought in c.80 countries;
-- A PR firm was hired and we have now achieved reader reach of
>50million over the last 12 months;
-- The number of ISOs and introducers has gone from being
negligible to >50, including a number in the USA;
-- The number of prospective clients is now >1,000 with
significant household names recently announced and regular sales
now being experienced;
-- Certification of the SulNOx EcoTM products have included fuel
standards for both petrol and diesel in the USA and for Very Low
Sulphur Fuel Oil (VLSFO) and Marine Gas and Diesel oil by Lloyds
Register.
Future developments
Whilst The Chairman's Statement provides high level information
on the outlook for the Company, more specifically SulNOx will focus
on the following in the next 12 months:
1. Industry Sectors:
a. Shipping: With the price of fuel at unprecedented levels and
looking set to continue due to the prolonged Russian/Ukranian
conflict and the advent of new shipping regulation, shipping
remains a top industry focus for SulNOx. Our declared 25 shipping
trials expected to commence in the next 6-9 months points to
significant revenues in the evaluation alone, before full scale
fleet adoption. Our German ISO has already purchased >2,000
litres of SulNOx but the expectation is for at least 9,000 more by
year end, and an estimate of c. GBP3million of revenue per annum
should a fleet of 30 typical tankers adopt SulNOx. The advent of
the Carbon Intensity Indicator (CII) regulation from January 2023
will also play an increasing role in shipping adoption of the
SulNOx product. CII is a measure of how efficiently a ship
transports goods or passengers and is given in grams of CO(2)
emitted per cargo-carrying capacity and nautical mile - SulNOx
improves both fuel consumption and reductions of Green Houses
Gases,
b. Construction and Mining: Clients and their procurement
departments are increasingly demanding greener construction. With
demonstrable improvements in the air quality from generator trials
and reduced consumption of c.10% in loaders, 8% in trucks and 6.5%
in Vans, the construction industry enables quick and cumulatively
significant revenue opportunities. Direct sales now materialising
from SulNOx.com
c. Power Generation: There is a focus on particulate matter
reduction in large burners in powerplants that consume vast
quantities of residual fuels, representing significant revenue
potential.
d. Transportation and logistics: New evaluations emerging within
rail and significant orders expected in public transportation
following successful and expanding trials across the globe
2. Geographical Expansions:
a. Further expansion in North America following on from the
historic $369 billion climate, clean energy legislation, where
SulNOx can have an immediate impact on environmental justice for
disadvantaged communities and by promoting clean vehicles and power
sources electricity generation. Multiple evaluations with
significant fuel consumers in train.
b. Further buildout in Europe: Expected significant revenues
from Germany and Switzerland and growth in UK, Spain, France and
various Eastern European countries with evaluations now
underway.
c. Significant enlargement of African footprint: SulNOx is going
viral amongst everyday drivers in Ghana due to immediate fuel
consumption improvements and improved engine performance. Successes
also continue in South Africa and new distributor discussions are
ongoing in DRC, Namibia, Mozambique, Botswana, Cote d'Ivoire,
Uganda, Tanzania, Senegal, Ethiopia, Kenya, Zambia, Zimbabwe, and
Nigeria.
d. Continued growth in Asia and Oceania: Revenues materialising
from initial orders, expected to grow quickly following from
impressive evaluation results including with biofuels. New
introducers emerging in India, Australia, Indonesia, The
Philippines, Malaysia, and South Korea,
3. R&D: Continued product and patent development
a. Oil Reclamation: First orders emerging with quotations sent.
A seemingly inexhaustible demand with limitations of scale to store
and process waste oil from engines and cargo in ports globally.
b. Pyrolysis: Increasing demand from emerging technologies with
both process and product being enhanced by SulNOx.
c. Paraffinic fuels: Liquid fuels synthetically created from
feedstocks such as natural gas (GTL), biomass (BTL) or coal (CTL);
or through hydro-treatment of vegetable oils or animal fats
(HVO).
d. New University partnerships following on from shipping success with Hochschule Wismar.
e. Carbon Credits: An 8% fuel saving from using SulNOx achieves
an estimated 160x carbon reduction and scope 3 reporting benefits,
Discussions ongoing to create carbon credits and an End-to-End
carbon lifecycle analysis underway - an increasing requirement for
large businesses to adopt SulNOx.
4. Further partnerships:
SulNOx can deliver on the common goals of cost and emissions
reductions whilst providing favourable ESG PR to users, itself
enabling increased and improved new business generation from our
green credentials. SulNOx is looking to partner with various
AI/Machine Learning and blockchain technologies to demonstrate and
report the effectiveness of our products. We are also in discussion
with emission monitoring technologies which will assist in the
aforementioned carbon credit and shipping industry ambitions.
Consolidated Statement of Comprehensive Income
Year ended 31 March 2022
2022 2021
Note GBP GBP
Turnover 4 33,522 17,896
Cost of sales (55,671) (12,380)
---------------- ----------------
Gross (loss)/profit (22,149) 5,516
Administrative expenses (1,953,742) (861,218)
------------------------ ------------------
Operating loss 5 (1,975,891) (855,702)
Interest payable and similar expenses 8 (2,085) -
------------------------ ------------------
Loss before taxation (1,977,976) (855,702)
Tax on loss 9 2,237 32,462
------------------------ ------------------
Loss for the financial year and total comprehensive
income (1,975,739) (823,240)
All the activities of the group are from continuing
operations.
Loss in pence per share 10
Basic (2.16 pence) (0.96 pence)
Diluted (2.16 pence) (0.96 pence)
Consolidated Statement of Financial Position
31 March 2022
2022 2021
Note GBP GBP
Fixed assets
Intangible assets 11 7,879,788 8,280,334
Tangible assets 12 24,061 3,528
------------------------ ------------------------
7,903,849 8,283,862
Current assets
Stocks 14 164,467 119,501
Debtors 15 78,051 36,332
Cash at bank and in hand 1,065,388 42,271
------------------------ ------------------
1,307,906 198,104
Creditors: amounts falling due
within one year 16 259,197 271,154
------------------------ ------------------
Net current assets/(liabilities) 1,048,709 (73,050)
------------------------ ------------------------
Total assets less current liabilities 8,952,558 8,210,812
------------------------ ------------------------
Net assets 8,952,558 8,210,812
Capital and reserves
Called up share capital 18 1,882,657 1,710,057
Share premium account 19 13,322,915 11,049,435
Other reserves, including the fair
value reserve 19 578,844 307,439
Profit and loss account 19 (6,831,858) (4,856,119)
-------------------------- --------------------------
Shareholders funds 8,952,558 8,210,812
Consolidated Statement of Cash Flows
Year ended 31 March 2022
2022 2021
GBP GBP
Cash flows from operating activities
Loss for the financial year (1,975,739) (823,240)
Adjustments for:
Depreciation of tangible assets 3,194 1,176
Amortisation of intangible assets 400,546 400,547
Interest payable and similar expenses 2,085 -
Equity-settled share-based payments 271,405 -
Tax on loss (2,237) (32,462)
Changes in:
Stocks (44,966) (8,063)
Trade and other debtors (41,719) 15,270
Trade and other creditors (9,720) 122,072
------------------------ ------------------
Cash generated from operations (1,397,151) (324,700)
Interest paid (2,085) -
Tax received - 42,217
------------------------ ------------------
Net cash used in operating activities (1,399,236) (282,483)
Cash flows from investing activities
Purchase of tangible assets (23,727) -
------------------------ ------------------
Net cash used in investing activities (23,727) -
Cash flows from financing activities
Proceeds from issue of ordinary shares 2,446,080 282,020
Proceeds from borrowings - (45,000)
------------------------ ------------------
Net cash from financing activities 2,446,080 237,020
Net increase/(decrease) in cash and cash equivalents 1,023,117 (45,463)
Cash and cash equivalents at beginning of
year 42,271 87,734
------------------ ----------------
Cash and cash equivalents at end of year 1,065,388 42,271
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NEXEAEPSAAXAEFA
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