MICROSAIC SYSTEMS PLC

Interim / Quarterly Report • Nov 12, 2024

National Storage Mechanism | Additional information

RNS Number : 7973L

Microsaic Systems plc

12 November 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

12 November 2024

Microsaic Systems plc

("Microsaic", "Microsaic Systems" or the "Company")

Interim Results for the six months ended 30 June 2024

Change of Registered Office

Proposed change of name

Microsaic Systems plc (AIM: MSYS), an international developer and provider of testing solutions for unique and underserved public health and environmental markets, is pleased to announce its unaudited interim results for the six months ended 30 June 2024 ("H1 24").

Bob Moore, Acting Executive Chairman of Microsaic Systems plc, commented:

"2023 was an extremely challenging year for the Company resulting in a complete restructure of the organisation in 2024.The first six months of 2024 has seen a transformational re-focus of the Microsaic Group following the equity fund raise and acquisition of the assets of Modern Water. A total reset of the business has been achieved as a result. After initial restructuring, new setup costs and investment to integrate the acquisition of the assets of Modern Water with Microsaic Systems, the Company is now well positioned to move forward with its comprehensive portfolio of testing and analytical technologies particularly in the water quality, safety, public health and environment protection sectors. As a purpose driven newly integrated business, we plan to be a market leader in these critically important fields for human wellbeing and our natural world."

H1 24 Financial Highlights

·    Unaudited Group revenues of £255k: an increase of 83% on (H1 23:  £139k)

•     Modern Water subsidiary revenues of £185k

•     Microsaic subsidiary revenues of £70k (H1 23: £139k)

·    Group gross profit was £122k (H1 23: loss £6k)

·    Group Adj.* EBITDA loss of £477k, a reduction of 53% compared to H1 23 Adj. EBITDA loss (£1,022k)

·    Group total comprehensive loss of £536k, a reduction of 50% compared to H1 23 loss (£1,078k)

·    Cash at 30 June 2024 was £982k (H1 23: £587k) and Company is debt free

*Loss of earnings before interest, tax, depreciation, amortisation and other items such as share-based payments and exceptional one-off expenditure.

Operational highlights

·     Completion of a net £1.8m equity funding round in January 2024

·     Completion and integration of the business assets of Modern Water, purchased for £100,000

·     The Company received £262k in a research and development tax reclaim from HMRC

·     Fit-out and validation of new 1,800 sq ft facility in York, new production, sales and support teams hired

·     Secured UK based supply chain for production of equipment, consumables and reagents

·     Passed ISO9001 audit and implemented comprehensive Quality Management System (QMS) including electronic document management systems to integrate Modern Water processes

·     Re-established distribution and sales network for Modern Water with revenues commencing in May 2024

·     An agreement was signed to provide water monitoring analysis systems for Doha, Qatar. During the first six months period revenues of over £143k have been booked to Modern Water from this ongoing project

·     The Company's technologies were showcased at the Singapore International Water week in June 2024 sponsored by the UK Department of Business and Trade

Post Period Events

·    Appointment of Graham Mullis as Strategic Advisor to the Board of Directors

·    Completion of installation of 27 Continuous Toxic Monitoring (CTM) devices in Doha, Qatar with potential to install additional CTM's in early 2025

·    The Company's technologies were showcased at WEFTEC in October, the largest water quality event in the US

·    Change of name of Microsaic Systems plc to Metir plc with retention of product names in trading subsidiaries (subject to shareholder approval)

·    Production at our York laboratory of bio-reagents for all our MicroTox® devices (CTM, LX and FX) fully operational with increasing sales pipeline to exisiting and new Modern Water customers

·    Redesign of laboratory based MicroTox® LX devices completed with manufacturing starting and shipping in December 2024 to meet overseas customer confirmed sales and enquiries

·    Starting trial partnership with Siemens and CAD-IT to incorporate machine learning data analysis software (AI) on our CTM's and other devices

·    Multi Pathogen Detector for in-line real time data (including viruses) detection based on Company's exisiting prototype developed to detect Covid-19 in water to be introduced in 2025

Current Trading & Outlook

The first six months of 2024 saw management direct its time with investment in infrastructure and re-establishing customer relationships with a focus on the Modern Water subsidiary. The Board is pleased with the response from customers and suppliers and the early revenues generated from this operating subsidiary. This revenue progress and financial performance improvement is expected to continue during the second half of this year with a growing order book from existing and new customers. The Company is also focused on supply-chain management and as revenues, the Board is also targeting an improvement in gross margins through product mix and economies of scale. The Company has many developments currently underway, as listed under 'Post Period Events' above and plans to provide a more detailed operational update shortly.   

A copy of these interim results is being made available on the Company's website at https://www.microsaic.com/investors/, and hard copies will be sent to shareholders who have requested communications in that format. Furthermore, the Company confirms that the annual report and audited financial results for the year ended 31 December 2023 was posted to shareholders who have requested communications in that format following publication on 11 October 2024.

Enquiries:

Microsaic Systems plc Bob Moore, Acting Executive Chairman	+44 (0) 20 3657 0050 via TPI
Singer Capital Markets (Nominated Adviser & Joint Broker) Alex Bond / Oliver Platts	+44 (0)20 7496 3000
Turner Pope Investments (TPI) Limited (Joint Broker) Andy Thacker / James Pope	+44 (0) 20 3657 0050

About Microsaic Systems

Microsaic is highly experienced in the development, manufacture and supply of microelectronics instrumentation for markets requiring analytical testing in public and environmental health markets. The Company has recently acquired and integrated the assets of Modern Water with Microsaic Systems' technologies resulting in comprehensive water testing and other toxic testing capabilities.

Microsaic's products and solutions are commercially available through global markets via a network of regional and country specific distributors and partners.

Chairman's Statement

First, I would like to apologise for the late filing of the 2023 accounts and consequent late filing of our 2024 interim accounts. 2023 was an extremely challenging year for the Company caused primarily by the collapse of DeepVerge plc, the main debtor to the Company resulting in major directorate and management changes and the suspension of trading of the Company's shares on AIM.

The decision in Q4 2023 to raise new equity on AIM for the Company to remain as a going concern and to acquire the Modern Water business, which completed in January 2024, has enabled the Company to totally reset and reinvent its business model. The Company has become a leading water security, monitoring and analysis business combining the early warning technologies supplied by Modern Water technologies with the gold standard mass spectrometer detailed analysis capabilities of Microsaic. 

The Company has deployed the necessary financing to upgrade the acquired Modern Water assets and provide capital to invest in and develop the enlarged business. The acquired assets are complementary to the existing Microsaic business model. Following acquisition of the Modern Water business the Company set out to engage with previous customers to re-establish relationships and to instigate a new sales pipeline. Using the acquired assets, we restarted the manufacture of the MicroTox® bio-reagents (the consumables for our Modern Water testing devices) late in Q2 2024 at our new laboratory near York, England.

Microsaic's overall cost base has been substantially reduced and we now operate a leaner, more efficient business model for our acquired water testing technologies and manufacturing of our mini-mass spectrometer devices. We have reset and redesigned the Company around a new and much more efficient model based on the integration of the enlarged business to optimise growth of sales, solutions and services income to be generated by the combined entities.

Business Strategy

Following the total business reset and acquisition of the Modern Water business in January 2024, the Company's objective is to become a leading international business offering testing solutions for unique and under-served markets. The Company has an initial strategic focus to provide and develop proprietary technologies for testing and monitoring toxins in water and industrial effluents. By owning the assets of Modern Water, the Company has gained the right to manufacture and supply a wide range of proprietary technology devices for detecting toxins in water and liquids using MicroTox® bio-reagent consumables. The Company will operate in a water testing market which is worth USD 4.45 billion in 2022 and growing at 6.1% compound rate per annum from 2023-2030 (ref Grand View Research report GVR-68040-069-5) and has unique products that are immediately able to generate revenues and therefore generate cash-flow.  In the near term, most of the company's income is expected to come from the Modern Water part of the business.

The unique and proprietary mini mass spectrometers developed and supplied by the Microsaic Systems subsidiary complements the Modern Water devices. The Company is becoming a leading water security, monitoring and analysis business combining the early warning technologies supplied by Modern Water technologies with its gold standard mass spectrometer detailed analysis capabilities. 

By integrating the businesses and combining the detailed analysis only available through mass spectrometry techniques, the company now offers a unique and comprehensive suite of devices and capabilities for detecting and identifying toxins in water and effluents. We have collectively named this the 'Tethys Purity® solution'.

As the financial performance of the Company grows and subject to resources, the Company will evaluate new markets that its current technologies can provide unique testing solutions for and either pursue this organically, inorganically or through other means such as partnerships and licensing.

Proposed change of name

Microsaic plans to rebrand to reflect the broader number of market opportunities its suite of technologies can now serve by changing its name to Metir plc (subject to shareholder approval) as part of the reset strategy. The branding in its operating subsidiary companies of Modern Water and Microsaic Systems are, however, well established and recognised trading brand names and will be maintained. It is expected that shareholder approval will be sought at the Company's upcoming AGM.

Appointment of adviser

We are pleased to announce that Graham Mullis has agreed to become an adviser to the Board to assist the company with its business strategy, development and growth plans. Graham is a seasoned healthcare entrepreneur with a track record of leading and growing multiple companies, creating close to £1 Billion in shareholder value during his 25-year executive career. As the former CEO of Biocompatibles Eyecare, ClearLab International, Optivue, Lab21 and Novacyt, he brings extensive strategic, commercial, and corporate experience whilst operating across London AIM, Paris Euronext and NASDAQ financial markets. With the last fifteen years dedicated to the diagnostics testing markets, including human, research, animal, water and environmental sectors, Graham is well positioned to offer invaluable guidance and experience to support the planning of Microsaic's strategic growth and performance.

Cash Position

Within its FY23 Final Results Announcement released on 11 October 2024, the Company provided a detailed update on its cash flow projections together with a sensitivity analysis exploring a severe but plausible downside scenario. The Directors confirm that this assessment remains as accurate as at today's date and remind readers that, under the reverse stress test performed, a minimum sales level of approximately £84k per month, in addition to the Qatar contract, is required to enable the Company to remain liquid and with positive cash headroom over the next twelve months. While the directors consider this to be an achievable target, it is acknowledged that this exceeds the level of turnover experienced in the year ending 31 December 2023 or in 2024 to date.

The Company had net cash as at 11 November 2024 of £257k. It is expecting to receive VAT repayments totalling approximately £75k across November 2024 and December 2024 and approximately £194k from a customer based in the Middle East in November 2024. These payments will materially improve the Company's cash position.

STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2024

		6 months	6 months	Year to 31
		to 30 June	to 30 June	December
		2024	2023	2023
	Notes	Unaudited	Unaudited	Audited
		£000s	£000s	£000s
Revenue	4	255	139	492
Cost of sales	5	(133)	(145)	(193)
Gross profit		122	(6)	299
Other operating income		-	-	-
Research and development expenses		-	(312)
Impairment of related party debt		-	-	(6)
Other operating expenses		(674)	(853)	(2,876)
Total operating expenses		(674)	(1,165)	(2,882
Loss from operations before share-based payments		(552)	(1,171)	(2,583)
Share-based payments	11	-	-	(21)
Loss from operations after share-based payments		(552)	(1,171)	(2,604)
Financial cost			(1)	(5)
Finance income		16	13	13
Loss before tax		(536)	(1,159)	(2,597)
Tax on loss on ordinary activities			81	-
Total comprehensive loss for the period		(536)	(1,078)	(2,597)
Loss per share attributable to the equity holders of
the Company
Basic and diluted loss per ordinary shares	6	(0.008)p	(0.017)p	(0.041)p

Note that the above revenues in the 6 months to 20 June 2024 include £144,000 in respect of an ongoing contract with Avanceon for installation of Continuous Toxic Monitoring (CTM) equipment in Doha, Qatar.

STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT 30 JUNE 2024

		30 June	30 June	31 December
		2024	2023	2023
	Notes	Unaudited	Unaudited	Audited
		£000s	£000s	£000s
ASSETS
Non-current assets
Intangible assets		75	60	53
Property, plant and equipment		133	287	113
Right of use assets		-	38	-
Total non-current assets		208	385	166
Current assets
Inventories		265	284	103
Trade and other receivables		426	448	10
Corporation tax receivable		-	343	261
Cash and cash equivalents		982	587	173
Total current assets		1,673	1,662	547
TOTAL ASSETS		1,881	2,047	713
EQUITY AND LIABILITIES
Equity
Share capital		1,748	1,731	1,731
Share premium		30,095	28,262	28,263
Share-based payment reserve		-	2,316	-
Retained losses		(30,386)	(30,669)	(29,850)
Total Equity		1,457	1,640	144
Current liabilities
Trade and other payables		387	219	519
Lease liability		18	18	8
Total current liabilities		405	237	527
Non-current liabilities
Provision	9	19	149	30
Lease liability		-	21	13
Total non-current liabilities		19	170	43
Total liabilities		424	407	570
TOTAL EQUITY AND LIABILITIES		1,881	2,047	713

STATEMENT OF CHANGES IN EQUITY (UNAUDITED) AS AT 30 JUNE 2024
				Share based
		Share	Share	payment	Retained	Total
		capital	premium	reserve	Losses	equity
		£000s	£000s	£000s	£000s	£000s
At 1 January 2023		1,731	28,262	2,401	(29,675)	2,719
Total comprehensive loss for the period		-	-	-	(1,079)	(1,079)
Transactions with owners
Shares issued				-	-
Transfer in respect of lapsed share options		-	-	(85)	85	-
Share based payments share options		-	-		-
At 30 June 2023		1,731	28,262	2,316	(30,669)	1,640
At 1 July 2023		1,731	28,262	2,316	(30,669)	1,640
Total comprehensive loss for the period		-	-	-	(1,518)	(1,518)
Transactions with owners
Transfer in respect of directors' warrants exercised		-	-	(1,503)	1,503	-
Transfer in respect of lapsed share options		-	-	(834)	834	-
Share based payments-share options		-	-	21	-	21
At 31 December 2023		1,731	28,262	-	(29,850)	143
At 1 January 2024		1,731	28,262	-	(29,850)	143
Total comprehensive loss for the period		-	-	-	(536)	(536)
Transactions with owners
Transfer in respect of lapsed share options						-
Shares issued		17	1,833			1,850
Share based payments share options			-	-	-	-
At 30 June 2024		1,748	30,095	-	(30,386)	1,457

STATEMENT OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2024
		6 months	6 months	Year to 31
		to 30 June	to 30 June	December
		2024	2023	2023
	Notes	Unaudited	Unaudited	Audited
		£	£	£000s
Cash flows from operating activities
Cash absorbed by operations	12	(1,191)	(871)	(1,311)
Corporation tax received		262	253	253
Net cash used in operating activities		(929)	(618)	(1,058)
Cash flows from investing activities
Purchases of intangible assets		(38)	(5)	(11)
Purchases of property, plant and equipment		(90)	(23)	(2)
Proceeds from sale of Non-current assets Interest received		- 16	13	48  13
Net cash used in investing activities		(112)	(15)	48
Cash flows from financing activities
Proceeds from share issues		1,850	-	-
Share issue costs			-	-
Repayment of lease liabilities			(20)	(59)
Net cash from/(used in) financing activities		1,850	(20)	(59)
Net increase/(decrease) in cash and cash equivalents		809	(653)	(1,069)
Cash and cash equivalents at beginning of the year		173	1,241	1,241
Cash and cash equivalents at the end of the period		982	588	173

NOTES TO THE INTERIM FINANCIAL INFORMATION (UNAUDITED)

1. Nature of Operations

Microsaic Systems plc (the "Company") is registered in England and Wales. The Company's registered office is at York Eco Business Centre, Amy Johnson Way, York, England YO30 4AG, with effect from 22 March 2024. The Company has two wholly (100%) owned subsidiaries, Modern Water (U.K.) Ltd and Microsaic Systems Trading Ltd, so the financial information relates to these consolidated accounts together with the parent company. Microsaic is a high technology company supplying Modern Water analytical instruments utilising the MicroTox® bio-reagent brand manufactured at our new dedicated laboratory near York, England. The Company also manufactures miniaturised mass spectrometers that are designed to be utilised at point-of-need testing which can be used complimentary to Modern Water technologies including PFAS detection.

2. Basis of preparation

The interim financial statements of the Company for the six months ended 30 June 2024, which are unaudited, have been prepared in accordance with the accounting policies set out in the annual report and accounts for the year ended 31 December 2023, which were prepared under International Financial Reporting Standards ("IFRS").

This report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006 and has not been audited. The financial information for the full preceding year is based on the statutory accounts for the year ended 31 December 2023. Those statutory accounts have been published and will shortly be filed with the Registrar of Companies. The auditor's report on those statutory accounts was unqualified.

As permitted, this interim report has been prepared in accordance with the AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" and therefore it is not fully compliant with IFRS.

The interim financial statements are presented in pounds sterling.

3. Critical accounting estimates and judgements

Accounting estimates and judgements are continually evaluated and are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates could, by definition, differ from the actual outcome.

Estimates and adjustments that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities are set out in the annual report and accounts for the year ended 31 December 2023, and no additional items have been identified.

4. Revenues

IFRS 15 provides a single, principles based, five-step model to be applied to all contracts with customers. The five-step framework includes:

·    Identify the contract(s) with a customer;

·    Identify the performance obligations in the contract;

·    Determine the transaction price;

·    Allocate the transaction price to the performance obligations in the contract; and

·    Recognise revenue when the entity satisfies a performance obligation.

The Company recognises revenue from the following four sources:

·    Sale of products;

·    Sale of consumables and spare parts;

·    Product service and product support; and

·    Consultancy services.

All revenues and trade receivables arise from contracts with customers. Revenue is measured based on the consideration which the Company expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The sale of products, consumables and spare

parts are recognised when the sole performance obligation is met which is usually on delivery to the customer. For product service, product support and consultancy services revenue, the performance obligation is satisfied over the duration of the service period and revenue is recognised in line with the satisfaction of the performance obligation.

Sale of products

The Company sells a wide range of Modern Water analytical and toxic water and effluent testing equipment utilising our MicroTox® consumable bio-reagents. The Company also sells mini mass spectrometers (Microsaic 4500 MiD®) mainly through OEMs and distributors. A small proportion of its sales are direct to the customer. Discounts are offered and agreed as part of the contractual terms. Terms are generally Ex Works so control passes when the customer collects the goods. Payment terms are generally 30 days from the date of invoice.

Sales of consumables and spare parts

The Company sells consumables and spare parts mainly through OEMs and distributors. Terms are generally Ex Works so control passes when the customer collects the goods. Discounts are offered and agreed as part of the contractual terms. Payment terms are generally 30 days from the date of invoice.

Product service and product support revenue

Service and support to our OEMs, distributors and systems integrators includes training their sales and service teams and servicing the products from time to time. Discounts are offered and agreed as part of the contractual terms. Terms are Ex Works so control passes when the customer receives the service. Payment  terms are generally 30 days from the date of invoice.

Usually, there is no obligation on the Company for returns, refunds or similar arrangements. Also, the Company does not manufacture specific items to a customer's specification and no financing component is included in the terms with customers.

The Company provides assurance warranties which are 15 months from the date of shipment for OEMs and distributors. These warranties confirm that the product complies with agreed-upon specifications. The Company is looking to provide service warranties in the future to direct customers in Europe, where the revenue from such warranties will be recognised over the period of the service agreement.

Consultancy services revenue

Consultancy services comprise science and engineering consultancy, laboratory services and monitoring services. These services are delivered over a period of time usually in accordance with a master services agreement and/or statement of works with an agreed outcome at the end of the project or project phase.

Consultancy services revenue is recognised by reference to the stage of completion of the project or project phase at the balance sheet date as follows:

·    Where there are defined project or project phase milestones, the revenue is recognised in full on completion of the project or project phase and on a time basis for the stage of completion where the project or project phase is not completed at the balance sheet date. The stage of completion is recognised as the proportion of time spent on the project or project phase compared with the total time anticipated to complete the project or project phase; and/or

·    Where the project is defined with the client in terms of time spent, the revenue is recognised on the basis of consulting time spent on the project by the Company at the time-based rates agreed with the client.

The geographical analysis of revenues (by location of shipment) was as follows:

	6 months	6 months	Year to 31
	to 30 June	to 30 June	December
	2024	2023	2023
	Unaudited	Unaudited	Audited
	£000s	£000s	£000s
UK	3	11	109
USA	70	2	10
EU	23	72	137
China		54	215
ROW	159	-	21
	255	139	492
The product group analysis of revenues was as follows:
	6 months	6 months	Year to 31
	to 30 June	to 30 June	December
	2024	2023	2023
	Unaudited	Unaudited	Audited
	£000s	£000s	£000s
Product/Unit	197	47	286
Consumables and spares	43	13	98
Service and support income	15	79	108
Less: Sales to DeepVerge plc	255	139 (65)	492 (65)

Total Sales to customers (excluding DeepVerge plc)      255                          74                      427

5. Cost of sales

Cost of sales of products

The cost of sales of Modern Water, mass spectrometers and related equipment is the bought in purchase cost of the product or the transfer value from stock value if an item has been previously written down. Usually, the sale is made on an Ex-Works basis but if it were not the cost of delivery to the customer is also included in cost of sales.

Cost of sales of consumables and spare parts

The cost of sales of consumable and spare parts is the bought in purchase cost of the consumable or spare part or the transfer value from stock value if an item has been previously written down. Usually, the sale is made on an Ex-Works basis but if it were not the cost of delivery to the customer is also included in cost of sales.

Cost of sales of product service and product support income

The cost of sales of service and support income is the time-based apportionment of the employment costs of the relevant staff spent on the delivery of the service and support income plus any related costs of fulfilment such as travel expenses and any externally incurred direct costs. For the purposes of cost of sales, the employment costs are considered to be salaries, pensions and employers national insurance but does not include share-based payments nor any apportionment of training or overheads.

Cost of sales of consultancy services revenue

The cost of sales of consultancy services (comprising science and engineering consultancy, laboratory services and monitoring services) is the time-based apportionment of the employment costs of the relevant staff spent on the delivery of this revenue plus any related costs of fulfilment such as travel expenses and any externally incurred direct costs. For the purposes of cost of sales, the employment costs are considered to be salaries, pensions and employers national insurance but does not include share-based payments nor any apportionment of training or overheads.

6. Loss per share

	6 months	6 months	Year to 31
	to 30 June	to 30 June	December
	2024	2023	2023
	Unaudited	Unaudited	Audited
Comprehensive loss attributable to equity	(536)	(1,078)	(2,597)
shareholders (£000s)
Weighted average number of ordinary
shares for the purpose of basic	164,321,042	6,324,666,516	6,361,365,146
and diluted loss per share
Basic and diluted loss per ordinary share (p)	(0.34)p	(0.017)p	(0.041)p

7. EBITDA Adjusted Loss

A key indicator of performance for the Company is Adjusted EBITDA Loss (Loss of earnings before interest, tax, depreciation, amortisation and other items such as share-based payments and exceptional one-off expenditure). Detailed below is the Adjusted EBITDA Loss for the period:

	6 months	6 months	Year to
	to 30 June	to 30 June	31-Dec
	2024	2023	2023
	Unaudited	Unaudited	Unaudited
	£000s	£000s	£000s
Comprehensive loss for period	(536)	(1,078)	(2,597)
Adjust for:
Tax on loss on ordinary activities	-	(81)	-
Depreciation of property, plant and equipment	60	95	183
Depreciation of right of use assets		38	76
Amortisation of Intangibles	15	14	27
Net finance cost/(income)	(16)	(10)	(8)
Share-based payments (excluding fee shares)		-	(21)
EBITDA Adjusted Loss	(477)	(1,022)	(2,340)

8. Employees and employment related costs

	6 months to 30 June	6 months to 30 June	Year to 31 December
2024 Unaudited	2023 Unaudited	2023 Audited
Staff Numbers
Directors	2	2	3
Other staff		21	15
Average Headcount	2	23	18
	£000s	£000s	£000s
Employment costs (including Directors)
Wages and salaries	110	526	986
Social security costs	8	57	110
Termination payments		5	69
Pension costs	10	71	132
Employment related share-based payments		21	21
	128	680	1,318

9.    Provisions

	Dilapidations	Warranties	TOTAL
	£000s	£000s	£000s
Balance at 1 January 2024	10	20	30
Provided for/(reduced) during the period	-	-	-
Balance at 30 June 2024	10	20	30

10.  Commitments

As at 30 June 2024, purchase commitments relating to purchase orders placed on, and related contractual arrangements and obligations, with our third-party manufacturers amounted to £559,800 (31 December 2023: £651,944).

11.  Share-based payments.

The share-based payments charge comprises	6 months	6 months	Year to
	to 30 June	to 30 June	31 December
	2024	2023	2023
	Unaudited	Unaudited	Audited
	£	£	£000s
Directors' fees settled in shares	-	-	-
Vesting of share options	-	-	21
Employment related share-based payments	-	-	21
Brokers' fees settled in shares	-	-	-
	-	-	21

There were no Directors' fees settled in shares in the 6 month period to 30 June 2024.

12.  Cash absorbed by operations.

	6 months	6 months	Year to 31
	to 30 June	to 30 June	December
	2024	2023	2023
	Unaudited	Unaudited	Audited
	£000s	£000s	£000s
Total comprehensive loss for the year	(536)	(1078)	(2,597)
Adjustments for:
Amortisation of intangible assets	15	14	27
Depreciation of right of use assets	-	38	76
Depreciation of property, plant and equipment	60	95	183
Transfer of property, plant and equipment to	-	-	-
cost of goods
Loss/(Profit) on disposal of right of use assets	-	-	38
Decrease/(Increase) in provision for dilapidation & warranty	-	33	(85)
Increase/(Decrease) in provision for expected	-	-	6
credit losses
Share-based payments (inclusive of fees settled in shares)	-	-	21
Increase/(Decrease) in inventory provision		16
Tax on loss on ordinary activities	-	(81)	-
Interest on lease liability	-	2	2
Interest received	(16)	(13)	(13)
Movements in working capital:
(Increase)/Decrease in inventories	(162)	(25)	170
(Increase)/Decrease in trade and other receivables	(416)	146	577
Increase/(Decrease) in trade and other payables	(136)	(17)	284
Cash absorbed by operations	(1,191)	(871)	(1,311)

13.  Related party transactions

There were no related transactions in the six months ended 30 June 2024, other than the participation of Bob Moore in the Placing announced on 15 January 2024 in which he subscribed for 9,040,000 shares at 0.06p on the same terms as other investors.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR FFUEEFELSEIF