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GPL Graft Polymer (uk) Plc

0.135
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Graft Polymer (uk) Plc LSE:GPL London Ordinary Share GB00BMD1Z199 ORD GBP0.001
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.135 0.12 0.15 0.135 0.135 0.135 124,764 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Business Services, Nec 542k -2.71M -0.0260 -0.05 135.33k

Graft Polymer (UK) PLC Interim Results (2471B)

30/09/2022 7:00am

UK Regulatory


Graft Polymer (uk) (LSE:GPL)
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TIDMGPL

RNS Number : 2471B

Graft Polymer (UK) PLC

30 September 2022

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

30 September 2022

Graft Polymer (UK) Plc

("Graft Polymer", the "Company", and together with its subsidiaries, the "Group")

Interim Financial Results

Graft Polymer (UK) Plc (LSE: GPL), a business focused on the development and commercial production of polymer modification products, biological supplements, and nano-drug delivery systems, is pleased to announce its interim results for the period ended 30 June 2022.

Highlights

-- Successful admission to trading on the London Stock Exchange following the Company raising GBP5,000,000 before costs;

-- Cashflow positive operational status achieved through organic growth at the Company's production facility in Slovenia;

-- Granted a HACCP certificate for production at the Slovenian facility enabling the Company to enter the B2C market;

-- First large commercial purchase order received since IPO for 50,000 units of ArtemiC(TM) Rescue from MGC Pharmaceuticals;

-- Pre-payments made on tailor-made equipment at lower than original forecast costs which are expected to be installed in the coming weeks and will double the Company's production capacity; and

   --    Strong cash reserves and nil debt, net GBP2m net cash in the bank post totalCAPEX spend. 

For further information on the Company please visit www.graftpolymer.com or contact :

 
 Roby Zomer (Chairman)        Graft Polymer                        V ia St Brides Partners 
  / Yifat Steuer (FD)          (UK) plc 
 J ames Pope / Andy Thacker   Turner Pope Investments            Tel: +44 (0)20 3 657 0050 
                               (Broker) 
                             ------------------------  ----------------------------------- 
 Catherine Leftley /          St Brides Partners       graftpolymer@stbridespartners.co.uk 
  Ana Ribeiro / Max Bennett    Ltd, 
                               Financial PR 
                             ------------------------  ----------------------------------- 
 

Chairman's Statement

I am pleased to present a review of our activities for the six months to 30 June 2022 for Graft Polymer (UK) Plc ('Graft Polymer' or the 'Company' or the 'Group'), in possibly the most significant period in the Company's history to date, following our IPO on the London Stock Exchange in January this year. The team at Graft Polymer have been working tirelessly to carry forward the strong progress made following its successful raise of GBP4.15 million, achieving a number of key objectives that we set out to do at the time of the listing.

By way of a reminder of Graft Polymer's business, having developed a proprietary set of polymer modification technologies, which uses recycled raw materials and a closed loop system to reduce plastic waste by up to 50 per cent, our technology can improve existing products and processing methodologies by enhancing performance, simplifying manufacturing, reducing material consumption, widening the choice of feedstocks, and reducing costs. Our motto, "combine the incompatible", reveals the essence of Graft Polymer's business; the use of a diverse range of modification technologies to combine immiscible and incompatible components into polymer composites.

The progress of the Company's GraftBio division in the period under review has been particularly successful, having been granted a Hazard Analysis and Critical Control Point ('HACCP') certificate at the Slovenian R&D facility which will enable the Group to enter the B2C market, commercialising its IP for bio/pharma applications, developing drug carriers for use in the pharma and the food supplement markets, thereby introducing a further revenue stream to its business.

Following on from this, post period end, the GraftBio division received its first large commercial purchase order since IPO for 50,000 units of ArtemiC(TM) Rescue from MGC Pharmaceuticals, to be sold in the US, a significant milestone for the GraftBio division and the rest of the Group. Production commenced immediately with funds expected to be remitted upon delivery of the product in the coming weeks. The Group anticipates follow on orders in the coming quarters and the ability for the GraftBio proprietary drug delivery system division to licence and produce a wide range of products for pharmaceutical clients, like MGC Pharma, and many other customers and industries going forward, demonstrates the diverse nature of our technology.

It is the nature of our industry to be constantly researching and developing to find the most efficient way to design and develop products. Whether this is through innovations of the product itself or through the production facility, where the Group switched to a two-shift operation to ensure order fulfilment, and with further investment in production line and laboratory equipment upgrades planned to maximise output to 6,000 tonnes per annum, doubling the existing capacity. These upgrades also provide a boon to Graft Polymer as they have come at a lower than budgeted price. These planned upgrades will greatly increase the profitability of the facility and will enable further R&D.

Very importantly with respect to the Company's commercial operations, the Slovenian manufacturing facility has also recently achieved cash flow positive status through organic growth alone, showcasing Graft Polymer's unique position within the industry. Boasting a very experienced board of directors, Graft Polymer is in an ideal situation to utilise the board's skills and knowledge to further augment the Company's growth and achieve the rest of the goals set out in the prospectus and beyond.

One of the Group's core strategies is the development of its intellectual property ('IP'). The development of our innovative IP pipeline is a significant growth driver and recently we have had seven patents granted in the period, five of which were in the EU, which boasts some of the strongest IP laws in the world, ensuring GP's proprietary products are well protected meaning the Group can continue to innovate and develop new products.

As a reminder of the Company's operations, Graft Polymer has two main divisions that aim to create maximum value for the company, boost revenue through diversification, and enhance Graft Polymer's strong IP strategy.

Polymer Modification

The Company's first division has been very successful since the Company IPO'd. The polymer division offers a diverse range of products that combine immiscible and incompatible components creating unique solutions for the Group's clients. As the Group is a newly listed company, it offers certain benefits over some of the more established players in the polymer field such as agility and flexibility. The Group can create bespoke and niche products for nearly any market/industry and has a long pipeline of potential clients with customer trials currently underway that if successful will offer a good source of revenue as well as repeat custom.

Only six months into trading, the development and manufacturing facility in Slovenia became cash flow positive representing a key financial and strategic milestone for the Company, and will, in turn, allow more extensive R&D into new products further enhancing profitability and the Group's reputation as a company that offers a wider and more unique range of products than other competitors in the market.

GraftBio

The GraftBio division is the second spinout from Graft Polymer which is targeting pharmaceutical companies with its proprietary Drug Delivery System ('DDS') that aims to reduce dosage frequency and mitigate unwanted side effects. The DDS has already been put to good effect with a successful pre-clinical trial from MGC Pharmaceuticals Ltd ('MGC Pharma') to treat Glioblastoma multiforme cells which is a fast-growing and aggressive form of brain cancer.

Separately Graft Polymer received its first US market commercial order for 50,000 units of ArtemiC(TM) Rescue, a nutraceutical which has been used to treat patients suffering from moderate Covid-19 showcasing the wide range of applications GPL's DDS can be used for.

The GraftBio division is particularly exciting for the Company as it is expected to be more profitable than the polymer division, with the belief that it can generate gross margins of around 60 per cent, furthermore, it is predicted to be less seasonal than the polymer division which is generally quieter during the summer period which will create a counterbalance to the workloads and maximise productivity throughout the year.

The GraftBio division also has a spinoff Bio-Supplement division which has been made possible through the granting of the HACCP certificate, which has enabled the Company to enter the lucrative business-to-Consumer ('B2C') market. The Bio-Supplement division further diversifies GPL's business and adds another revenue stream in the particularly lucrative supplement market that has been valued at US$ 71.81B in 2021 and is projected to grow to US$ 128.64B by 2028.

Outlook

Despite the onset of the tragic war in Ukraine and the supply shortages and supply chain issues that have occurred, the outlook for Graft Polymer remains largely positive, having reached cashflow positive at the Slovenian facility through organic growth alone represents a major milestone and a good anchor point which will allow GPL to continue its cutting-edge innovation whilst also having a strong basis of revenue to rely on. In the short-term production capacity at the Slovenian facility will be expanded which will nearly double the output and allow more orders to be fulfilled, further increasing revenue and company awareness.

It is an exciting period for the Group as it has many opportunities ahead of it in terms of its new division, cash flow positive status and large client pipeline. I am very much looking forward to updating the market with our progress. I would like to use this opportunity to thank all the team for their hard work and the considerable progress that has been made since listing.

Roby Zomer

Chairman

29 September 2022

Interim Financial Statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHSED 30 JUNE 2022

 
                                         Unaudited     Unaudited 
                                        Six months    Six months 
                                Note     to 30 Jun     to 30 Jun 
                                              2022          2021 
                                           GBP'000       GBP'000 
---------------------------  -------  ------------  ------------ 
  Continuing operations 
   Revenue                      3              331           226 
  Cost of sales                              (177)          (82) 
---------------------------  -------  ------------  ------------ 
 Gross profit                                  154           144 
  Other income                                  15             1 
  Operational costs                          (155)         (137) 
  Administrative 
   expenses                                  (783)         (365) 
---------------------------  -------  ------------  ------------ 
 Operating loss                 4            (769)         (357) 
  Depreciation                                (41)          (45) 
  Finance costs                                (5)           (5) 
---------------------------  -------  ------------  ------------ 
 Loss before taxation                        (815)         (407) 
  Income tax                                     -             - 
---------------------------  -------  ------------  ------------ 
  Loss for the period 
   from continuing 
   operations                                (815)         (407) 
  Total loss for 
   the period attributable 
   to equity holders 
   of the parent 
  Other comprehensive 
   (loss)/income                                 -           (8) 
---------------------------  -------  ------------  ------------ 
  Total comprehensive 
   loss for the period 
   attributable to 
   equity holders 
   of the parent                             (815)         (415) 
===========================  =======  ============  ============ 
 
  Loss per share 
   (p)                          5           (0.79)        (0.58) 
===========================  =======  ============  ============ 
 
 
  Interim Financial Statements 
   CONSOLIDATED STATEMENT OF FINANCIAL              Unaudited         Audited 
   POSITION AS AT 30 June 2022                    30 Jun 2022     31 Dec 2021 
                                          Note        GBP'000         GBP'000 
---------------------------------------  ----- 
 Non-current assets 
  Property, plant and equipment            6              324             310 
  Intangible assets                        7            2,068           2,068 
  Other non-current assets                                 13              12 
 Total non-current assets                               2,405           2,390 
---------------------------------------  ----- 
 Current assets 
  Cash and cash equivalents                             3,043             598 
  Trade and other receivables              9              347             142 
---------------------------------------  ----- 
  Total current assets                                  3,390             740 
---------------------------------------  -----  -------------  -------------- 
 TOTAL ASSETS                                           5,795           3,130 
=======================================  =====  =============  ============== 
 Equity attributable to owners of 
  the parent 
  Issued share capital                     12              41               7 
  Share premium                                         7,001             942 
  Shares to be issued                                       -             500 
  Capital reduction reserve                             2,500           2,500 
  Foreign exchange reserve                                  3               3 
  Accumulated losses                                  (3,955)         (3,140) 
---------------------------------------  -----  -------------  -------------- 
 Total equity                                           5,590             812 
---------------------------------------  -----  -------------  -------------- 
 Non-current liabilities 
  Other non-current liabilities                            27               - 
 Total non-current liabilities                             27               - 
 Current liabilities 
  Trade and other payables                 10             178             958 
  Borrowings                               11               -           1,360 
 Total current liabilities                                178           2,318 
---------------------------------------  -----  ------------- 
 Total liabilities                                        205           2,318 
---------------------------------------  -----  -------------  -------------- 
 TOTAL EQUITY AND LIABILITIES                           5,795           3,130 
=======================================  =====  =============  ============== 
 

Interim Financial Statements

CONSOLIDATED STATEMENT OF CASHFLOWS

For the six months ended 30 June 2022

 
                                        Unaudited     Unaudited 
                                       Six months    Six months 
                                        to 30 Jun     to 30 Jun 
                                             2022          2021 
                                          GBP'000       GBP'000 
                                     ------------  ------------ 
 Cash flow from operating 
  activities 
  Operating loss - continuing 
   operations                               (815)         (407) 
 Adjustments for: 
   Depreciation - property, 
    plant & equipment                          41            40 
   Depreciation - right of 
    use asset                                   -             5 
   Finance charge                               1             5 
   Gain on settlement of CLN's 
    / accrued fees through issue 
    of shares                                (15)             - 
   Foreign exchange loss                        3             - 
 Changes in working capital: 
   (Increase) / decrease in 
    trade and other receivables             (205)            10 
   (Decrease) / increase in 
    trade and other payables              (1,182)           168 
  Net cash (outflow)/inflow 
   from operating activities              (2,172)         (179) 
-----------------------------------  ------------  ------------ 
 Cash flow from investing 
  activities 
   Purchase of property, plant 
    and equipment                            (47)             - 
  Net cash outflow from investing 
   activities                                (47)             - 
----------------------------------   ------------  ------------ 
 Cash flows from financing 
  activities 
   Payment of lease liability                   -          (16) 
   Proceeds from borrowings                     -           150 
   Net proceeds from issue 
    of shares                               4,660             - 
  Net cash inflow from financing 
   activities                               4,660           134 
-----------------------------------  ------------  ------------ 
  Net (decrease)/increase 
   in cash and cash equivalents             2,441          (45) 
   Cash and cash equivalents 
    at beginning of period                    598           209 
   Foreign exchange impact 
    on cash                                     4          (10) 
  Cash and cash equivalents 
   at the end of the period                 3,043           154 
-----------------------------------  ------------  ------------ 
 

Interim Financial Statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
 For the six months                      Shares                 Capital     Foreign 
  ended 30 June                 Share     to be      Share    Reduction    Exchange   Accum-ulated     Total 
  2022                        Capital    Issued    Premium      Reserve     Reserve         Losses    Equity 
                              GBP'000   GBP'000    GBP'000      GBP'000     GBP'000        GBP'000   GBP'000 
 
 At 1 January 
  2021                              7         -        942        2,500        (12)        (1,895)     1,542 
   Loss for the period              -         -          -            -           -          (407)     (407) 
   Other comprehensive 
    income                          -         -          -            -         (8)              -       (8) 
--------------------------  ---------  --------  ---------  -----------  ----------  -------------  -------- 
 Total comprehensive 
  loss for the period               -         -          -            -         (8)          (407)     (415) 
 Balance at 30 
  Jun 2021 - (unaudited)            7         -        942        2,500        (20)        (2,302)     1,127 
--------------------------  ---------  --------  ---------  -----------  ----------  -------------  -------- 
 
 At 1 January 
  2022                              7       500        942        2,500           3        (3,140)       812 
   Loss for the period              -         -          -            -           -          (815)     (815) 
   Other comprehensive 
    loss                            -         -          -            -           -              -         - 
--------------------------  ---------  --------  ---------  -----------  ----------  -------------  -------- 
 Total comprehensive 
  loss for the period               -         -          -            -           -              -     (815) 
--------------------------  ---------  --------  ---------  -----------  ----------  -------------  -------- 
   Shares issued 
    during the period              34     (500)      6,399            -           -              -     5,933 
   Share issue costs                -         -      (340)            -           -              -     (340) 
--------------------------  ---------  --------  ---------  -----------  ----------  -------------  -------- 
 Total                             34     (500)      6,059            -           -              -     5,593 
 Balance at 30 
  June 2022 - (unaudited)          41         -      7,001        2,500           3        (3,955)     5,590 
==========================  =========  ========  =========  ===========  ==========  =============  ======== 
 

Interim Financial Statements

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2022

   1.         BASIS OF PREPARATION 

The condensed consolidated interim financial statements of Graft Polymer (UK) plc (the "Company") and its subsidiaries (together the "Group") for the six-month period ended 30 June 2022 have been prepared in accordance with Accounting Standard IAS 34 Interim Financial Reporting.

The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the period ended 31 December 2021, which was prepared in accordance with UK adopted International Accounting Standards (IFRS) and the Companies Act 2006, and any public announcements made by Graft Polymer (UK) plc during the interim reporting period and since.

These condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2021 prepared under IFRS have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These condensed interim financial statements are prepared in GBP to the nearest GBP'000.

The condensed consolidated interim financial statements have not been audited.

   1.1       GOING CONCERN 

The interim financial statement have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future.

Taking into account the cash reserves at period end and having reviewed the forecasts for the coming 12 months, the Directors believe the Group has sufficient resources to meet its obligations for a period of at least 12 months from the date of approval of these financial statements.

Taking these matters into consideration, the Directors consider that the continued adoption of the going concern basis is appropriate and the Interim Financial Information does not reflect any adjustments that would be required if they were to be prepared other than on a going concern basis.

   1.2       CRITICAL ACCOUNTING ESTIMATES 

The preparation of condensed Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and disclosure of contingent assets and liabilities at the end of the reporting period.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the period ended 31 December 2021, with the nature and amounts of such estimates have not changed significantly during the interim period.

   2.         SEGEMENT REPORTING 

The following information is given about the Group's reportable segments:

The Chief Operating Decision Maker is the Board of Directors. The Board reviews the Group's internal reporting in order to assess performance of the Group. Management has determined the operating segment based on the reports reviewed by the Board.

The Board considers that during the six month period ended 30 June 2022 the Group operated in the single business segment of polymer development and production.

   3.         REVENUE 
 
                       6 Mths      6 Mths 
                        to 30       to 30 
                     Jun 2022    Jun 2021 
                      GBP'000     GBP'000 
----------------   ----------  ---------- 
  Sales revenue           331         226 
                          331         226 
                   ----------  ---------- 
 
   4.         OPERATING LOSS 

Operating loss from continued operations is stated after (charging) / crediting:

 
                                           6 Mths      6 Mths 
                                            to 30       to 30 
                                         Jun 2022    Jun 2021 
                                          GBP'000     GBP'000 
------------------------------------   ----------  ---------- 
 
 Operating costs                            (155)       (204) 
 Director and employee costs                (324)       (142) 
 Professional and consulting fees           (277)       (194) 
 Travel expenses                              (2)         (2) 
 Corporate and administrative costs         (145)         (7) 
 Other expenses                              (35)        (20) 
                                       ----------  ---------- 
                                            (938)       (569) 
                                       ----------  ---------- 
 
   5.         EARNINGS PER SHARE 

The calculation of the basic and diluted earnings per share is calculated by dividing the profit or loss for the period by the weighted average number of ordinary shares in issue during the period.

 
                                                    Six months          Six months 
                                                     to 30 Jun           to 30 Jun 
                                              2022 (unaudited)    2021 (unaudited) 
-----------------------------------------   ------------------  ------------------ 
   Loss for the period from continuing 
    operations - GBP '000s                               (815)               (407) 
   Weighted number of ordinary shares in 
    issue                                          102,967,002          70,000,000 
------------------------------------------  ------------------  ------------------ 
   Basic and diluted earnings per share 
    from continuing operations - pence                  (0.79)              (0.58) 
------------------------------------------  ------------------  ------------------ 
 

There is no difference between the diluted loss per share and the basic loss per share presented. Share options and warrants could potentially dilute basic earnings per share in the future. These were not included in the calculation and no diluted earnings per share presented as the Group is loss making and additional equity instruments are anti-dilutive for the periods presented.

   6.         PROPERTY, PLANT AND EQUIPMENT 
 
                                                    Plant &            Total 
                                                  Equipment          GBP'000 
                                                    GBP'000 
------------------------------------------      -----------  ----  --------- 
  Cost 
  At 1 June 2021 - (audited)                            550              550 
   Additions                                              1                1 
   Exchange impact                                     (14)             (14) 
                                                -----------        --------- 
  At 31 December 2021 - (audited)                       537              537 
   Additions                                             47               47 
   Exchange impact                                       15               15 
                                                -----------        --------- 
  At 30 June 2022 - (unaudited)                         599              599 
                                                -----------        --------- 
  Depreciation 
  At 1 June 2021                                      (186)            (186) 
   Charge for the year                                 (46)             (46) 
   Exchange impact                                        5                5 
                                                -----------        --------- 
  At 31 December 2021 - (audited)                     (227)            (227) 
   Charge for the period                               (41)             (41) 
   Exchange impact                                      (7)              (7) 
                                                -----------        --------- 
  At 30 June 2022 - (unaudited)                       (275)            (275) 
                                                -----------        --------- 
  Net book value at 31 December 2021 
   (audited)                                            310              310 
                                                -----------        --------- 
  Net book value at 30 June 2022 
   (unaudited)                                          324              324 
                                                -----------        --------- 
 
 
   7.         INTANGIBLE ASSETS 
 
                                  30 June 
                                     2022 
                                                     31 Dec 
                              (unaudited)    2021 (audited) 
                                  GBP'000           GBP'000 
-------------------  ----  --------------  ---------------- 
   Opening balance                  2,068             2,068 
   Additions                            -                 - 
                           --------------  ---------------- 
                                    2,068             2,068 
                           --------------  ---------------- 
 

At each period / year end, the Directors assess the intangible assets for any indicators of impairment and have concluded no presence of such indicators, hence concluded that no impairment charge was necessary during the year (31 Dec 2021: GBPnil).

   8.         INVESTMENT 

Company subsidiary undertakings

The Group owned interests in the following subsidiary undertakings, which are included in the consolidated financial statements:

 
                                     Business              Country             Registered 
 Name                  Holding        Activity              of Incorporation    Address 
                   30 Jun   31 Dec 
                    2022     2021 
----------------  -------  -------  --------------------  ------------------  --------------------- 
                                                                               Emonska Cesta 
  Graft Polymer                      Polymer development                        8, 1000, Ljubljana, 
   d.o.o.           100%     100%     and production           Slovenia         Slovenia 
----------------  -------  -------  --------------------  ------------------  --------------------- 
                                                                               Eccleston 
                                     Holder of                                  Yards, 25 
                                      all Group                                 Eccleston 
  Graft Polymer                       Intellectual             England &        Place, London, 
   IP Limited       100%     100%     Property                   Wales          SW1W 9NF 
----------------  -------  -------  --------------------  ------------------  --------------------- 
 
   9.         TRADE AND OTHER RECEIVABLES 
 
                                                            30 June 
                                                               2022 
                                                                       31 Dec 2021 
                                                        (unaudited)      (audited) 
                                                            GBP'000        GBP'000 
---------------------------------------------  ----  --------------  ------------- 
   Trade receivables                                             25             20 
   Advanced payments for plant and equipment                    152              - 
   Other taxes and social security                               61             99 
   Other receivables                                            107             23 
                                                     --------------  ------------- 
                                                                345            142 
                                                     --------------  ------------- 
 
   10.       TRADE AND OTHER PAYABLES 
 
                                 30 June 
                                    2022 
                                            31 Dec 2021 
                             (unaudited)      (audited) 
                                 GBP'000        GBP'000 
------------------  ----  --------------  ------------- 
   Trade payables                     67            841 
   Accruals                           72            480 
   Other payables                     39             39 
                          --------------  ------------- 
                                     178          1,360 
                          --------------  ------------- 
 
   11.       BORROWINGS 
 
                                               30 June 
                                                  2022 
                                                          31 Dec 2021 
                                           (unaudited)      (audited) 
                                               GBP'000        GBP'000 
-------------------------------  ----  ---------------  ------------- 
   Convertible note borrowings                       -            958 
                                                     -            958 
  ----------------------------------------------------  ------------- 
 
 
                                                  30 June 
                                                     2022 
                                                             31 Dec 2021 
                                              (unaudited)      (audited) 
                                                  GBP'000        GBP'000 
-----------------------------------  ----  --------------  ------------- 
  Opening balance                                     958            653 
   Convertible loans issued                             -            300 
   Exchange impact                                      -            (3) 
   Interest (repaid) / accrued                        (8)              8 
   Settlement of convertible loans                  (950) 
                                           -------------- 
 Closing balance                                        -            958 
                                           --------------  ------------- 
 

During the period, the Company completed the Admission to the London Stock exchange as part of the admission, the entire outstanding convertible loan note balance of GBP950,000 was converted through the issue of 7,947,786 Ordinary shares, with the balance of GBP8,000 in accrued interest settled in cash.

   12.       SHARE CAPITAL 
 
                                                  20 Jun 2022   31 Dec 2021 
                                                  (unaudited)     (audited) 
---------------------------------------------   -------------  ------------ 
 Issued and fully paid ordinary shares 
  with a nominal value of 0.1p (2020: 0.01p) 
   Number of shares                               104,097,299    70,000,000 
   Nominal value (GBP'000)                                 41             7 
                                                -------------  ------------ 
 

Change in issued Share Capital and Share Premium:

 
                                  Number of      Share      Share 
                                     shares    capital    premium     Total 
 Ordinary shares                               GBP'000    GBP'000   GBP'000 
 Balance at 31 May 2021          70,000,000          7        942       949 
                               ------------  ---------  ---------  -------- 
 Balance at 31 December 2021     70,000,000          7        942       949 
                               ------------  ---------  ---------  -------- 
 Shares issued during the        34,097,299 
  period                                (1)         34      6,399     6,433 
 Share issue costs                                   -      (340)     (340) 
 Balance at 30 June 2022        104,097,299         41      7,001     7,042 
                               ------------  ---------  ---------  -------- 
 

(1) On 6 January 2022, the Group was admitted to the London Stock Exchange and upon Admission issued the following ordinary shares:

   -    23,255,813 shares we issued at a price of GBP0.215 raising GBP5,000,000 before costs; 
   -    7,947,785 share were issued in settlement of convertible loan notes; and 

- 2,893,701 shares were issued in settlement of accrued fees to directors and consultants outstanding as at 30 September 2021.

The share premium represents the difference between the nominal value of the shares issued and the actual amount subscribed less; the cost of issue of the shares, the value of the bonus share issue, or any bonus warrant issue.

Capital and reserves

During the previous period, the Company received GBP500,000 in relation to the subscription of shares for the Company's admission onto the London Stock Exchange which occurred during the current period.

During previous periods, the Directors approved a GBP2,500,000 reduction in capital resulting in a transfer being made from share premium to the capital reduction reserve.

The Group statements of changes in equity are set out on page 4 of this report.

   13.       EVENTS SUBSEQUENT TO PERIOD END 

Other than as disclosed in these financial statement, there have been no further events subsequent to period end.

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.

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END

IR SEFFWUEESEEU

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