HYDROGEN UTOPIA INTERNATIONAL PLC

Earnings Release • Sep 30, 2022

National Storage Mechanism | Additional information

RNS Number : 2477B

Hydrogen Utopia International PLC

30 September 2022

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

30 September 2022

Hydrogen Utopia International PLC

("HUI" or the "Company")

Half Year Report

Hydrogen Utopia International PLC (AQSE:HUI), a company pioneering non-recyclable waste plastics to hydrogen technology, is pleased to announce its unaudited interim results for the six months ended 30 June 2022.

Highlights

Commercial, Technological and Business Development

·    The period covers the first six months post IPO during which time the Company spent most time working on potential business opportunities, progressing its technology and expanding the executive team and the Company's network of consultants. This has culminated in the signing of a number of agreements post period as detailed below.

·    Work continues on building a pipeline of HUI facilities in Europe, with the intention of establishing a first plant as soon as practicable. Planning discussions regarding the proposed site in Ireland are progressing and a further update will be provided as soon as possible. On the European Continent, our consultants, SWECO, are responding to a few further queries raised last month in relation to the environmental impact assessment application for the Konin site in Poland. In addition, there are a number of ongoing discussions elsewhere in Germany, the Netherlands and Poland in particular.

·    Following the period end it was announced that Electron Technologies B.V. ("Electron"), the designer of HUI's unique thermal processing system for the conversion of waste plastic into syngas, had completed the first design phase of the system and a testing programme for the low temperature reactor phase of the process was due to commence. Following that testing, which is expected to take place shortly, the system documentation will undergo a full design review in the light of the results and testing of the high temperature reactor phase of the process will precede moving into the detailed design and manufacture stage.  

·    In July we announced that we had agreed heads of terms with Powerhouse Energy Group plc ("PHE") for the joint development of a site in the Midlands in Ireland on a 50:50 basis. This project is anticipated to lead to HUI's first operational full scale waste plastic to hydrogen facility in Europe. The joint development agreement, which is subject to the joint venture vehicle obtaining an acceptable title to the site and the completion of relevant project documentation, involves PHE making to HUI a £400,000 cash payment and providing it with a £600,000 loan subject to a satisfactory agreement for the land being finalised. In addition, in recognition of the fact that this joint venture supersedes any pre-existing arrangements between us, HUI and PHE have agreed that the existing exclusivity and collaboration agreements between the parties will be mutually terminated with no further obligation on either party.

·    In August we agreed further heads of terms with PHE for the proposed 50:50 joint development of a facility at a site in Konin within the Wielkopolska (Greater Poland) Voivodeship. Under those arrangements, at financial close HUI will receive a fixed sum of €250,000 for the costs HUI has incurred in developing the site together with a premium of €250,000 through an appropriate mechanism to be agreed at the time.

·    Commencement of trading in the Company's shares on the US OTCQB market in July 2022 under OTCQB ticker HUIPF, facilitating access to a broader pool of investors.

Financial Performance

·    No revenue for the half year, in line with expectations, and losses of £583.9k (H1 2021: £335.5k).

·    Net Assets of £4.15m at 30 June 2022 (H1 2021: £229.8k).

·    £3.2m cash at bank at 30 June 2022 (H1 2021: £309.9k).

Guy Peters, Executive Chairman, commented:

"The first half year since our IPO in January has seen progress on a broad number of fronts: project  pipeline, technological development, two proposed joint ventures in Ireland and Poland and the cross trading of our shares in the USA. We continue to build on these foundations with the intention of becoming a leading business in waste plastic to hydrogen in Europe and potentially across the world."

Aleksandra Binkowska, Chief Executive Officer, commented:

"The world has finally come to a realisation that it needs bold ideas, creative solutions and technologies like ours. The issue we are dealing with is not just the exponentially growing problem of waste plastic, but the disastrous, international energy crisis we are currently facing. I strongly believe that with partners like Linde, Electron and Powerhouse we can make a real mark on the global arena."  

The directors of the Company accept responsibility for this announcement.

For more information about the Company, please refer to our website: www.hydrogenutopia.eu

For further information please contact:

Hydrogen Utopia International PLC

Aleksandra Binkowska/Guy Peters                         

+44 20 3811 8770     

Alfred Henry Corporate Finance Limited (AQSE Corporate Adviser)

Jon Isaacs                                                                           

+44 20 3772 0021   

Novum Securities Limited (Broker)                                                                    

Jon Belliss/Colin Rowbury                                           

+44 20 7399 9400

About Hydrogen Utopia International PLC

HUI aims to become one of the leading new European companies specialising in turning non-recyclable mixed waste plastic into carbon-free fuels, new materials or distributed renewable heat.

A HUI facility uses non-recyclable mixed waste plastic as feedstock and turns it into syngas from which new products and energy can be produced. HUI anticipates that its revenues will be derived from a variety of sources, dependent upon location and configuration of the HUI facilities, including the sale of syngas, hydrogen and other gases, electricity and heat sales, and the payment to it of fees for a given quantity of non-recyclable mixed waste plastic received at a HUI facility.

Unaudited Consolidated Statement of Comprehensive Income for the period ending 30 June 2022

			Six months ended June 30	Six months ended June 30	Period ended December 31
			2022	2021	2021
	Notes		£ (Unaudited)	£ (Unaudited)	£ (Audited)
Administrative expenses			(583,878)	(335,533)	(1,036,645)
Operating loss			(583,878)	(335,533)	(1,036,645)
Investment revenues			4	55	184
Loss on ordinary activities before taxation			(583,874)	(335,478)	(1,036,461)
Income tax expense			-	-	-
Loss and total comprehensive income for the period			(583,874)	(335,478)	(1,036,461)
Basic and Diluted Earnings per share from continuing operations (pence)	8		(0.0015)	(3.1364)	(0.0067)

Unaudited Consolidated Statements of Financial Position as at 30 June 2022

	Notes	30 June 2022	30 June 2021	31 December 2021
		£ (Unaudited)	£ (Unaudited)	£ (Audited)
Non-Current assets
Property, plant and equipment		516,450	385,906	386,533
Investment in Financial Assets	6	425,315	-	-
		941,765	385,906	386,533
Current assets
Trade and other receivables		106,604	31,790	1,995,864
Cash and bank balances		3,204,701	309,935	2,697,612
		3,311,305	341,725	4,693,476
Total Assets		4,253,070	727,631	5,080,009
Current liabilities
Trade and other payables		104,822	497,838	505,071
Income tax payable		-	-	-
		104,822	497,838	505,071
Total Liabilities		104,822	497,838	505,071
Equity
Share capital	7	384,320	150	344,320
Share premium		5,174,684	599,970	2,214,684
Other reserves		209,579	-	3,052,395
Retained earnings		(1,620,335)	(370,327)	(1,036,461)
		4,148,248	229,793	4,574,938
Total Equity and Liabilities		4,253,070	727,631	5,080,009

Unaudited Consolidated Statement of Changes in Equity for the period ending 30 June 2022

	Share capital	Share premium	Other reserves	Retained profits		Total equity
	£	£	£	£		£
Balance at 1 Jan 2021 (unaudited)	100	-	-	(34,849)		(34,749)
Loss for the six months ended 30 June 2021	-	-	-	(335,478)		(335,478)
Issue of share capital	50	599,970	-	-		600,020
Balance at 30 June 2021 (unaudited)	150	599,970	-	(370,327)		229,793
Loss for the six months ended 31 December 2021	-	-	-	(666,134)		(666,134)
Issue of share capital	344,170	1,871,830	-	-		2,216,000
Share issue costs	-	(257,116)	-	-		(257,116)
Recognition of shares to be issued	-	-	3,000,000	-		3,000,000
Share based payment expense	-	-	52,395	-		52,395
Balance at 31 December 2021 (audited)	344,320	2,214,684	3,052,395	(1,036,461)		4,574,938
Loss for the six months ended 30 June 2022	-	-	-	(583,874)		(583,874)
Issue of share capital	40,000	2,960,000	(3,000,000)	-		-
Share based payment expense	-	-	157,184	-		157,184
Balance at 30 June 2022 (unaudited)	384,320	5,174,684	209,579	(1,620,335)		4,148,248

Unaudited Consolidated Statement of Cash Flows for the period ended 30 June 2022

		Six Months ended 30th June	Six Months ended 30th June	Period ended 31st December
		2022	2021	2021
		£	£	£
		(Unaudited)	(Unaudited)	(Audited)
Cash flow from operating activities
Profit/(loss) for the period		(583,874)	(335,478)	(1,036,461)
Investment Income		(4)	(55)	(184)
Depreciation, amortisation and impairment		104	-	23
Equity settled share based payment expense		157,184	-	52,395
(Increase)/decrease in trade and other receivables		1,889,258	(31,330)	(1,995,764)
Increase/(decrease) in trade and other payables		(400,249)	287,410	505,071
Recognition of shares to be issued		-	-	1,880,000
Net cash generated for/(absorbed in) operating activities		1,062,419	(79,453)	(594,920)
Cash flows from investing activities
Purchase of property, plant and equipment		(130,019)	(385,906)	(386,556)
Investment in Financial Assets		(425,315)	-	-
Interest received		4	55	184
Net cash generated for/(absorbed in) investing activities		(555,330)	(385,851)	(386,372)
Cash flows from financing activities
Proceeds from issue of shares		-	600,020	2,558,904
Proceeds from shares to be issued		-	-	1,120,000
Net cash generated for/(absorbed in) financing activities		-	600,020	3,678,904
Net increase in cash & cash equivalents		507,089	134,716	2,697,612
Cash and equivalent at beginning of period		2,697,612	175,219	-
Cash and equivalent at end of period		3,204,701	309,935	2,697,612

Notes to the Interim Financial Information

1. General information

Hydrogen Utopia International Plc is a company incorporated and domiciled in England and Wales. The Company's registered offices are Block D Imperial Works, Perren Street, London, England, NW5 3ED. The Company is listed on the AQSE (ticker: HUI).

The unaudited consolidated financial information comprises the financial information of Hydrogen Utopia International Plc, HU2021 International Limited, Hydropolis United, Plastic Gold IKE and Alister Future Technologies (AFT) Limited (the "Group").

The principal activities of the entities in the Group are as follows: -

Name of company	Country of incorporation	Principal activities
Hydrogen Utopia International plc	England and Wales	Holding company
HU2021 International Limited	England and Wales	SVP
Hydropolis United	Poland	Energy producer
Plastic Gold IKE	Greece	Energy producer
Alister Future Technologies (AFT) Ltd	Ireland	SVP

On 9 June 2022 a company called Alister Future Technologies (AFT) Ltd, incorporated in Ireland, was set up which is a wholly owned subsidiary of HUI PLC.

There have been no significant changes in these activities during the relevant financial periods.

The consolidated interim financial information has been prepared in accordance with UK adopted International Accounting Standards (IFRSs). The interim financial information does not constitute full financial statements within the meaning of Section 435 of the Companies Act 2006. The interim results have not been audited or reviewed by the Company's auditors. The unaudited interim results have been prepared under the historical cost convention, in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The unaudited interim results were approved on 29 September 2022.

The comparative figures for the period ended 31st December 2021 for the Company are extracted from the audited financial statements which contained an unqualified audit report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.

The Directors have considered all available information about future events when considering going concern. The Directors have prepared and reviewed cash flow forecasts for 12 months from the date of approval of this financial information. The projections show that the Company will have sufficient funding to be able to continue as a going concern on the basis of its cash balances as at 30 June 2022.

1. Presentational currency

The financial information has been presented in sterling ("£") the Group's presentational currency. The functional currency of the Group is sterling ("£").

1. Summary of significant accounting policies

The same accounting policies and methods are used in the Interims as compared with the most recent financial statements, the period ended 31st December 2021, these Interims should be read in conjunction with them, which can be found here https://www.hydrogenutopia.eu/investors

Investment in Financial Assets are measured at fair value, any adjustments to fair value are put through other comprehensive income, any interest or dividend income are recognised in profit and loss.

The tax charge on profits assessable has been calculated at the rates of tax prevailing, based on existing legislation, interpretation and practices in respect thereof.

1. Segmental reporting

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Operating Group that are regularly reviewed by the chief operating decision maker (which takes the form of the Board of Directors) as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance.

Based on management information there is one operating segment. Revenues are reviewed based on the services provided.

No customer has accounted for more than 10% of total revenue during the periods presented.

1. Related Party Disclosure

As at 30 June 2022 the group was owed £250 by Plastic Power Limited (A Binkowska) and £340 by The Plastic Neutrality Pledge (A Binkowska) and owed £2,000 to Orison-IO Limited (H White).

1. Significant events during the period

On 26 April 2022 HUI PLC invested €500,000 in Trifol Resources Limited (GBP value £425,315) acquiring 100,000 €1 Ordinary shares, a company located in Co. Tipperary, Ireland. This investment gave HUI a minimum equity stake of 3.33% on a fully diluted basis.

1. Called up share capital

Authorised	Nominal value		30 Jun 22 (Unaudited)	30 Jun 21 (Unaudited)	31 Dec 21 (Audited)
			£	£	£
384,320,000 Ordinary	£0.001		384,320	150	344,320

On Admission, 6 Jan 22, the Company placed 40,000,000 Ordinary shares.

1. Basic and diluted earnings per share

The calculation of earnings per share is based on the following earnings and number of shares.

	Six months Ended 30 June 2022	Six months Ended 30 June 2021	Period ended 31 December 2021
	(Unaudited)	(Unaudited)	(Audited)
	£	£	£
Total comprehensive loss	(583,874)	(335,478)	(1,036,461)
Weighted average number of ordinary shares	382,994,033	106,961	153,798,219
Earnings per share
Basic and diluted earnings per share (pence)	(0.0015)	(3.1364)	(0.0067)

The EPS for the Period ended 31 December 2021 has been restated due to the reclassification of a bonus issue of shares.

1. Events after the reporting period

On 26 July 2022 the Company commenced trading on the OTCQB Venture Market in the United States of America.

On 26 July 2022 Howard White, Executive Director of the Company, purchased a total of 55,500 Ordinary Shares at a price of 9 pence per Ordinary Share. Following this transaction, Howard White has a total beneficial holding of 14,960,833 Ordinary Shares.

On 29 July 2022 a company called ERANOVA TIPPERARY Limited, incorporated in Ireland, was set up owned by Alister Future Technologies (AFT) Ltd which is wholly owned by HUI PLC.

On 9 August 2022 HUI agreed to grant Duncan Snelling, appointed as Engineering Consultant to the Company, options over up to 600,000 HUI ordinary shares at an exercise price of 9.725p per share.

On 10 August 2022 HUI PLC granted EMI share options under the Hydrogen Utopia International PLC Share Option Plan over 1,729,730 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") to James Nicholls-May, the Company's CFO, at an exercise price of 9.25p per share.

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