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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hydrodec Group Plc | LSE:HYR | London | Ordinary Share | GB00BFD2QZ40 | ORD 50P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMHYR
RNS Number : 6320R
HydroDec Group plc
25 September 2017
25 September 2017
Hydrodec Group plc
("Hydrodec", the "Company" or the "Group")
Unaudited Interim Results
Hydrodec Group plc (AIM: HYR), the clean-tech industrial oil re-refining group, today announces unaudited results for the six months ended 30 June 2017.
Financial highlights
-- Positive Group EBITDA of US$26k, the first positive trading EBITDA generated by the Group since its inception and an improvement of US$1.1 million on the prior year (H1 2016: US$1.1 million loss)
-- Revenues increased by 11% to US$9.0 million (H1 2016: US$8.1 million) driven by improved pricing and sales mix
-- H1 2017 gross unit margins up to 13% (H1 2016: 5%)
-- Significant reduction in corporate costs, falling to US$1.1 million from US$1.5 million (H1 2016)
-- Statutory loss for the period down to US$2.6 million from US$5.3 million (H1 2016, including discontinued operations)
-- Operating cash outflow (before working capital movements) reduced to US$0.2 million (H1 2016: US$2.0 million)
Operational highlights
-- Both US and Australian operations EBITDA positive in H1
-- Lower volumes reflecting a less active feedstock market in the US particularly in Q2 - demand for products remains very strong
-- Improving margins in the US business with increased proportion of transformer oil (compared to base oil) sales (H1 2017: 58%) compared to H1 2016 (42%)
-- Significantly improved feedstock performance in Australia -- First sale of carbon credits in respect of credits generated by production in 2013
Post period-end highlights and outlook
-- August provided best EBITDA month for US operation since recommissioning of the rebuilt plant in 2015
-- Strategic initiatives around procuring additional US feedstock underway -- Expectation of further margin improvements in the US heading into Q4
-- Agreement for "take or pay" arrangement with largest customer in Australia providing a basis for a much-improved performance in that business in H2
-- Confirmation of new patent for a further 20 years in the key US market -- Environmental award from US EPA for Canton operation -- Substantial growth in EBITDA expected in Q3 from Australian and US operations
-- While working capital continues to be closely monitored and controlled, the Board is increasingly confident that the Company will record positive EBITDA and cash generation for the full year for the first time in its history
Chris Ellis, Chief Executive Officer of Hydrodec, commented: "I am pleased to be able to report another positive step towards making Hydrodec profitable and re-establishing its position in the transformer oil market in our key operations in the US and Australia. Whilst market conditions, and particularly the availability of feedstock, remain highly competitive, both operations are generating positive EBITDA and the focus remains to continue to improve margins and profitability. Volumes and margins in Q3 to date have shown further significant improvements on Q2 and both operations are expected to generate substantially stronger positive EBITDA in Q3. The latest commercial arrangements in Australia will provide additional momentum heading into Q4. We continue to seek to take advantage of any opportunities the current market may yet present to grow the business within our existing platforms and will be focused on deploying our technology into new geographies and markets in the coming months."
For further information please contact:
Hot Features
Premium
020 3300
Hydrodec Group plc 1643
Chris Ellis, Chief Executive
Canaccord Genuity (Nominated 020 7523
Adviser and Broker) 8000
Henry Fitzgerald-O'Connor
Richard Andrews
Vigo Communications (PR 020 7830
adviser to Hydrodec) 9700
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. MarketsandMarkets forecasts that the global transformer oil market is expected to grow from US$1.98 billion in 2015 to US$2.79 billion by 2020 at a CAGR of 7.14% from 2015 to 2020. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (near 100%), producing 'as new' high quality oils at competitive cost and without environmentally harmful emissions. The process also completely eliminates PCBs, a toxic additive banned under international regulations. Hydrodec's plants are located at Canton, Ohio, US and Bomen, New South Wales, Australia.
In 2016 Hydrodec received carbon credit approval from the American Carbon Registry ("ACR"), enabling its product to be sold with a carbon offset and creating an incremental revenue stream. The Group is now generating carbon offsets through the re-refining of used transformer oil, which would otherwise ordinarily be incinerated or disposed of in an unsustainable manner. This is a highly distinctive feature for the Group, confirming (as far as the Board is aware) Hydrodec as the only oil re-refining business in the world to receive carbon credits for its output. This is a significant endorsement of the Company's proprietary technology and standing as a leader in its field.
Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Chief Executive's Report
I am pleased to be able to report significant progress during the period under review towards delivering the Company's key objectives of making Hydrodec profitable and re-establishing its position in the transformer oil market in our key operations in the US and Australia.
Strategy
In the first half of 2017, we have taken further significant steps forward to successfully reshape the Company in what continues to be a highly volatile marketplace. Our strategy of refocusing on the Group's market leading transformer oil re-refining technology and business, and to grow that business to access an increasing proportion of the US$2 billion plus global transformer oil market, is being rewarded. The Board remains committed to strengthening Hydrodec's footprint in the US and in the global transformer oil market, where the Board believes Hydrodec has a competitive advantage through its proven and market--leading technology.
However, from a personal perspective I am still to be satisfied with the speed of our progress and remain hugely ambitious for the Company and the opportunity to deliver fully on its technological potential, with the award and sale of carbon credits only reinforcing the unique offering Hydrodec possesses. With the full support of the Board, I will continue to assess all opportunities for internal and organic business growth as well as strategic acquisition opportunities and partnerships if, and only if, they are seen by the Board to add shareholder value. We will update shareholders on the progress of these initiatives. In the meantime, my focus remains on continuing to build upon the positive EBITDA delivered for H1, through the continued improvement in volumes and margins in both of our existing operations.
Summary
6 months 6 months % change
30-Jun-17 30-Jun-16
Volume ('000 litres) 15,063 16,750 -10%
Revenue (US$'000) 9,004 8,117 11%
Group EBITDA (US$'000) 26 (1,123)
Operational review
USA
The focus for the first half of 2017 has been on key customers, and strengthening the value of those relationships, as well as optimising the performance of the Canton facility, through a combination of leveraging the experience gained since fully commissioning the plant at the end of 2015 along with implementing specific targeted operating improvements identified at the beginning of the year.
Total sales volumes in Canton in the period were 13.2 million litres (H1 2016: 15.5 million litres), a reflection of the slower feedstock market in the first half of the year along with the effect of the stored inventory held at the beginning of 2016. Importantly, the primary objective of improving the sales mix between higher margin transformer oil and lower margin base oil produced at the Canton plant has seen significant progress with transformer oil sales representing 58% of sales (H1 2016: 42%). Plant utilisation during the period averaged 61% (H1 2016: 65%) - this indicates the spare capacity and potential for further significant operational and financial improvement when the feedstock position improves. Strategic initiatives in respect of sourcing additional feedstock are underway.
Post period-end, Hydrodec of North America has been recognised under the Ohio Environmental Protection Authority ("EPA")'s Encouraging Environmental Excellence Program (E3) which commends an organisation's exceptional achievements in environmental stewardship. Specifically, Hydrodec's Canton, Ohio location was congratulated by the EPA for its enhanced process recycling, energy efficiency, improving process efficiency to reduce waste and increased recycling, brownfield redevelopment, and upper management commitment for ongoing environmental improvements. This award is a tribute to the creativity and perseverance of our local team, the application of Hydrodec's world class technology and the support offered by our supply chain partner, G&S.
Australia
In respect of the operations in Australia, since the commissioning of the plant at the Southern Oil Refinery in May 2015 we have made further progress in re-establishing our commercial position. This has seen us win some notable feedstock opportunities with additional ones in the pipeline. Total sales volumes in Australia for the period were 1.9 million litres, a 45% increase on the prior year. The focus remains on expanding the customer base and increasing the proportion of transformer oil sales.
Post period-end, we reached agreement with our largest customer to convert to a "take or pay" arrangement. This is a key award for the business and provides us with a robust sales forecast going into Q4.
Market background
In the US, the general rebalancing of inventories has led to some recovery in pricing. Demand for our product remains strong while the general environment for feedstock remains competitive with lower quality producers blending into other grades of oil. From an environmental perspective this is disappointing, but in the long term continuing to pursue wider relationships with utilities will address this issue. Whilst the Group has been successful in improving margins we will continue to be challenged as we seek to gain recognition for the quality of the product we produce.
In Australia, market demand and margin remain relatively stable and the key to margin and volume improvement will be based around leveraging the quality of our product to increase sales of transformer oil into the key utilities.
Financial review
Revenues from continuing operations increased 11% to US$9.0 million (H1 2016: US$8.1 million), driven by improved pricing and sales mix. The Group sold 15.1 million litres during the period, a decrease of 10% on the corresponding period in 2016 reflecting the less active feedstock market in H1, particularly in the US. Of the volumes sold in the period, 52% represented transformer oil (H1 2016: 40%) and 48% was base oil (H1 2016: 60%), with margins steadily improving since the beginning of the year.
There has been a key focus on the reduction of overheads and corporate costs since 2016. Significant reductions have already been realised and the benefits from more recently implemented initiatives have been realised in the period under review. These savings are reflected in the reduction in administrative expenses from US$3.9 million to US$3.4 million as highlighted below.
Six months Six months
ended ended
30 June 30 June
2017 2016
USD'000 USD'000 % change
----------- ----------- ---------
Indirect operating
costs (1,374) (1,530) (10%)
Corporate costs (1,128) (1,451) (22%)
Depreciation and amortisation
- overheads (865) (939) (8%)
Administrative expenses (3,367) (3,920) (14%)
----------- ----------- ---------
Group EBITDA from continuing operations improved from US$1.1 million loss (H1 2016) to US$26k positive. The total loss for the period was US$2.6 million (H1 2016: US$5.3 million, including discontinued operations).
Operating cash outflow (before working capital movements) reduced to US$0.2 million (H1 2016: US$2.0 million). The improved performance resulted in working capital inflows of $0.6 million (H1 2016: outflow US$2.4 million). Total net cash inflow in the first six months of 2017 was US$47k compared to a US$0.2 million outflow in the prior year comparable period. Overall, the Group held US$0.2 million in cash on its balance sheet at the end of the period and retained approximately US$0.4 million headroom under its working capital facilities provided by Andrew Black, a Director and the Company's largest shareholder. As previously announced, these facilities are repayable on 31 December 2017, however Andrew Black has provided the Company with an option to extend the repayment date to 31 December 2018. Any such extension of the loans would be at the sole discretion of the Company and on commercial terms to be agreed between the parties at the time.
The amount of working capital required by the Group's operations continues to be closely monitored and controlled, and forms a key part of management information. While the improving operational and financial performance has led to the recent and forecast positive EBITDA position, the Group remains reliant on the operations continuing to operate positively going forward.
Risk management process
The Group has policies, processes and systems in place to help identify, evaluate and manage risks at all levels throughout the organisation. Risks are regularly reviewed and monitored by business unit or functional management teams. The executive team review the major risks across the Group on a quarterly basis to ensure that the management of these risks has appropriate focus. The Board review these at least twice a year.
The principal risks that could potentially have a significant impact on the Group in the future are set out on pages 11 to 13 of the 2016 Annual Report. The continued successful operation of Canton and Australia is the key performance imperative for the Group. The Annual Report can be downloaded at www.hydrodec.com.
Outlook
Today's results confirm further significant progress in the turnaround of the Company over the first half of the year. Our key objective during the rest of the year is to strengthen margins, grow market share and seek to leverage the recent carbon credit agreement signed in the US, whilst continuing to focus on cost reduction and efficiencies. Volumes and margins in Q3 to date have shown further significant improvements on Q2 and both operations are expected to generate substantially stronger positive EBITDA in Q3. The Board are increasingly confident that the Company will achieve positive Group EBITDA and cash generation for the full year for the first time in its history.
Chris Ellis
CEO
25 September 2017
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2017
Unaudited Unaudited
six months six months Audited
ended ended year ended
30 June 30 June 31 December
2017 2016 2016
Note USD'000 USD'000 USD'000
------------ ------------ -------------
Continuing operations
Revenue 2 8,962 8,117 16,828
Other income 42 404 445
Total income 9,004 8,521 17,273
Cost of sales (7,750) (7,695) (15,952)
Gross profit 1,254 826 1,321
-
Administrative expenses (3,366) (3,920) (6,613)
Impairment of property,
plant and equipment - - (373)
Operating loss (2,112) (3,094) (5,665)
Finance costs (570) (522) (1,086)
Loss on ordinary
activities before
taxation (2,682) (3,616) (6,751)
Taxation 127 78 445
Loss for the period
from continuing
operations (2,555) (3,538) (6,306)
Discontinued operation
Loss from discontinued
operation, net of
tax - (1,768) (1,503)
Loss for the period 3 (2,555) (5,306) (7,809)
------------ ------------ -------------
Loss for the period
attributable to:
Owners of the parent
company (2,368) (5,024) (7,145)
Non-controlling
interest (187) (282) (664)
(2,555) (5,306) (7,809)
------------ ------------ -------------
Loss per Ordinary
Share
From continuing
operations
Basic and diluted,
cents per share 4 (0.34) (0.47) (0.84)
------------ ------------ -------------
From continuing
and discontinued
operations
Basic and diluted,
cents per share 4 - (0.71) (1.05)
------------ ------------ -------------
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2017
Unaudited Unaudited
six months six months Audited
ended ended year ended
30 June 30 June 31 December
2017 2016 2016
USD'000 USD'000 USD'000
------------ ------------ -------------
Total loss for the
period (2,555) (5,306) (7,809)
Other comprehensive
income
Items that may be
subsequently reclassified
to profit and loss:
Foreign currency
translation differences
on foreign operations 51 (589) (1,101)
Foreign currency
translation differences
on discontinued
operations - - (216)
51 (589) (1,317)
------------ ------------ -------------
Total comprehensive
income for the period (2,504) (5,895) (9,126)
------------ ------------ -------------
Total comprehensive
income for the period
attributable to:
Owners of the parent
company (2,317) (5,613) (8,462)
Non-controlling
interest (187) (282) (664)
(2,504) (5,895) (9,126)
------------ ------------ -------------
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2017
Unaudited Unaudited
six months six months Audited
ended ended year ended
30 June 30 June 31 December
2017 2016 2016
Note USD'000 USD'000 USD'000
------------ ------------ -------------
Non-current assets
Property, plant
and equipment 37,630 39,707 38,318
Intangible assets 6,169 7,962 6,586
43,799 47,669 44,904
------------ ------------ -------------
Current assets
Trade and other
receivables 2,033 2,605 1,969
Inventories 497 515 460
Cash and cash equivalents 235 628 114
2,765 3,748 2,543
Current liabilities
Bank overdraft (747) (1,100) (688)
Trade and other
payables (4,449) (4,885) (3,787)
Provisions - (80) -
Other interest-bearing
loans and borrowings 5 (3,048) (2,871) (2,981)
(8,244) (8,936) (7,456)
------------ ------------ -------------
Net current liabilities (5,479) (5,188) (4,913)
Non-current liabilities
Employee obligations (79) (50) (63)
Other interest-bearing
loans and borrowings 5 (16,443) (16,053) (15,612)
Provisions (821) (820) (776)
Deferred taxation (1,028) (1,572) (1,093)
(18,371) (18,495) (17,544)
------------ ------------ -------------
Net assets 19,949 23,986 22,447
------------ ------------ -------------
Equity attributable
to equity holders
of the parent
Called up share
capital 6 6,200 6,200 6,200
Share premium account 130,539 130,539 130,539
Merger reserve 48,940 48,940 48,940
Employee benefit
trust (1,150) (1,150) (1,150)
Foreign exchange
reserve (10,440) (9,763) (10,491)
Capital redemption
reserve 420 420 420
Share option reserve 671 899 665
Profit and loss
account (162,915) (157,686) (160,547)
Equity attributable
to owners of the
parent company 12,265 18,399 14,576
------------ ------------ -------------
Non-controlling
interest 7,684 5,587 7,871
Total equity 19,949 23,986 22,447
------------ ------------ -------------
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)
Total
attributable
to
Profit owners
Employee Foreign Capital Share and of
Share Share Merger benefit exchange redemption option loss the Non-controlling Total
capital premium reserve trust reserve reserve reserve account parent interest equity
At 1 January
2016 6,620 130,539 48,940 (1,150) (9,174) 420 883 (152,662) 23,996 5,619 29,615
Transactions
with owners
in their
capacity
as owners:
Capital
contribution
from NCI - - - - - - - - - 250 250
Share-based
payment - - - - - - 16 - 16 - 16
Total
transactions
with owners
in their
capacity
as owners - - - - - - 16 - 16 250 266
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
Loss for
the period - - - - - - - (5,024) (5,024) (282) (5,306)
Other
comprehensive
income:
Currency
translation
differences - - - - (589) - - - (589) - (589)
Total other
Comprehensive
Income
for the
period - - - - (589) - - - (589) - (589)
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
Total
Comprehensive
Income
for the
period - - - - (589) - - (5,024) (5,613) (282) (5,895)
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
At 30 June
2016 6,200 130,539 48,940 (1,150) (9,763) 420 899 (157,686) 18,399 5,587 23,986
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Audited)
Total
Profit attributable
Employee Foreign Capital Share and to owners
Share Share Merger benefit exchange redemption option loss of the Non-controlling Total
capital premium reserve trust reserve reserve reserve account parent interest equity
At 1 January
2016 6,620 130,539 48,940 (1,150) (9,174) 420 883 (152,662) 23,996 5,619 29,615
Transactions
with owners
in their
capacity
as owners:
Capital
contribution
from NCI - - - - - - - - - 250 250
Sale of
interest
in HoNA - - - - - - - (966) (966) 2,666 1,700
Share-based
payment - - - - - - 9 - 9 - 9
Transfer
to retained
earnings
in respect
of
forfeit/waived
options - - - - - - (226) 226 - - -
Effect
of foreign
exchange
rates - - - - - - (1) - (1) - (1)
Total
transactions
with owners
in their
capacity
as owners - - - - - - (218) 740 (958) 2,916 1,958
-------- -------- -------- --------- ---------- ----------- -------- ---------- ------------- ---------------- ----------
Loss for
the year - - - - - - - (7,145) (7,145) (664) (7,809)
Other
comprehensive
income:
Currency
translation
differences - - - - (1,101) - - - (1,101) - (1,101)
Currency
translation
differences
on
discontinued
operations - - - - (216) - - - (216) - (216)
Total other
Comprehensive
Income
for the
year - - - - (1,317) - - - (1,317) - (1,317)
-------- -------- -------- --------- ---------- ----------- -------- ---------- ------------- ---------------- ----------
Total
Comprehensive
Income
for the
year - - - - (1,317) - - (7,145) (8,462) (664) (9,126)
-------- -------- -------- --------- ---------- ----------- -------- ---------- ------------- ---------------- ----------
At 31 December
2016 6,200 130,539 48,940 (1,150) (10,491) 420 665 (160,547) 14,576 7,871 22,447
-------- -------- -------- --------- ---------- ----------- -------- ---------- ------------- ---------------- ----------
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)
Total
Profit attributable
Employee Foreign Capital Share and to owners
Share Share Merger benefit exchange redemption option loss of the Non-controlling Total
capital premium reserve trust reserve reserve reserve account parent interest equity
At 1 January
2017 6,620 130,539 48,940 (1,150) (10,491) 420 665 (160,547) 14,576 7,871 22,447
Transactions
with owners
in their
capacity
as owners:
Share-based
payment - - - - - - 6 - 6 - 6
Total
transactions
with owners
in their
capacity
as owners - - - - - - 6 - 6 - 6
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
Loss for
the period - - - - - - - (2,368) (2,368) (187) (2,555)
Other
comprehensive
income:
Currency
translation
differences - - - - 51 - - - 51 - 51
Total other
Comprehensive
Income
for the
period - - - - 51 - - - 51 - 51
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
Total
Comprehensive
Income
for the
period - - - - 51 - - (2,368) (2,317) (187) (2,504)
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
At 30 June
2017 6,200 130,539 48,940 (1,150) (10,440) 420 671 (162,915) 12,265 7,684 19,949
-------- -------- -------- --------- --------- ----------- -------- ---------- ------------- ---------------- ----------
HYDRODEC GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended 30 June 2017
Unaudited Unaudited Audited
six months six months Year ended
ended ended
30 June 30 June 31 December
2017 2016 2016
USD'000 USD'000 USD'000
------------ ------------ ------------
Cash flows from operating
activities
Loss before taxation (2,682) (5,384) (8,254)
Finance costs 570 522 1,113
Adjustments for:
Loss/(gain) on disposal
of discontinued operations - 209 (52)
Amortisation, depreciation
and impairment 1,979 2,007 4,726
Loss on disposal of property,
plant and equipment - - 19
Share based payments 6 16 9
Foreign exchange movement (23) 626 (470)
Operating cash flows before
working capital movements (150) (2,004) (2,909)
(Increase)/decrease in
inventories (37) 455 510
Increase in receivables (64) (1,970) (1,312)
Increase/(decrease) in
trade and other payables 677 (859) (611)
Increase/(decrease) in
provisions - 12 (80)
Taxes paid - (5) (9)
Net cash inflow/(outflow)
from operating activities 426 (4,371) (4,411)
------------ ------------ ------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (162) - (540)
Proceeds from disposal
of property, plant and
equipment - - 10
Disposal of discontinued
operation, net of cash
disposed of - 1,716 1,760
Proceeds from sale of interest
in subsidiary - - 322
Net cash (outflow) /inflow
from investing activities (162) 1,716 1,552
------------ ------------ ------------
Cash flows from financing
activities
Proceeds from loans and
borrowings 870 3,546 4,665
Capital contribution from
NCI - 250 250
Interest paid (250) (522) (640)
Repayment of lease liabilities (837) (817) (1,618)
Net cash (outflow)/inflow
from financing activities (217) 2,457 2,657
------------ ------------ ------------
Net increase/(decrease)
in cash and cash equivalents 47 (198) (202)
Cash and cash equivalents
at beginning of period (574) (303) (303)
Effect of movements in
exchange rates on cash
held 15 29 (69)
Cash and cash equivalents
at end of period (512) (472) (574)
------------ ------------ ------------
Cash and cash equivalents 235 628 114
Bank overdraft (747) (1,100) (688)
------------
Net cash balance (512) (472) (574)
------------ ------------ ------------
HYDRODEC GROUP PLC
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 30 June 2017
1. ACCOUNTING POLICIES
Basis of preparation
This report was approved by the Directors on 22 September 2017.
The condensed consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as adopted by the EU ('Adopted IFRSs').
The condensed consolidated interim financial statements are presented in United States dollars ('USD') as the Group's business is influenced by pricing in international commodity markets which are primarily USD based.
The Company is domiciled in the United Kingdom. The Company's shares are admitted to trading on the AIM market.
The current and comparative periods to June have been prepared using the accounting policies and practices constant with those adopted in the annual financial statements for the year ended 31 December 2016, and with those expected to be adopted in the Group's financial statements for the year ended 31 December 2017.
Comparative figures for the year ended 31 December 2016 have been extracted from the statutory financial statements for that period which carried an unqualified audit report, did not contain a statement under sections 498(2) or (3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.
The financial information contained in this report does not constitute statutory financial statements as defined by section 434 of the Companies Act 2006, and should be read in conjunction with the Group's financial statements for the year ended 31 December 2016. This report has not been audited by the Group's auditors.
During the first six months of the current financial year there have been no related party transactions that materially affect the financial position or performance of the Group and there have been no changes in the related party transactions described in the last annual report.
The financial statements have been prepared on the going concern basis, which assumes that the Group will have sufficient funds to continue in operational existence for the foreseeable future.
The principal risks and uncertainties of the Group have not changed since the publication of the last annual financial report where a detailed explanation of such risks and uncertainties can be found.
2. SEGMENTAL INFORMATION
Subsequent to the disposal of Hydrodec (UK) Limited and Hydrodec Re-Refining (UK) Limited ('discontinued operations') in 2016, the Group has one main operating segment, Re-refining, which is classified as the treatment of used transformer oil and the sale of SUPERFINE(TM) oil. The operating segment arises from two geographic locations, USA and Australia.
Unaudited six months ended
30 June 2017
USA Australia Unallocated Total
USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 6,649 2,313 - 8,962
Other income 1 - 41 42
Operating EBITDA 660 116 (750) 26
Depreciation,
loss on disposal
of property,
plant and equipment
and impairment (969) (211) (2) (1,182)
Amortisation - (139) (658) (797)
Loss for the
year on continuing
operations (611) (278) (1,666) (2,555)
------------ ------------- ------------ ---------
Unaudited six months ended
30 June 2017
USA Australia Unallocated Total
USD'000 USD'000 USD'000 USD'000
Balance Sheet
Total assets 33,778 7,019 5,767 46,564
Total liabilities (11,605) (3,848) (11,162) (26,615)
------------ ------------- ------------ ---------
Net assets 22,173 3,171 (5,395) 19,949
------------ ------------- ------------ ---------
Unaudited six months ended
30 June 2016
Discontinued
Re-refining operations Unallocated Total
USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 8,117 4,724 - 12,841
Other income 404 - - 404
Operating EBITDA (86) (1,559) (1,594) (3,239)
Depreciation,
loss on disposal
of property,
plant and equipment
and impairment (1,132) (213) (4) (1,349)
Amortisation (871) - - (871)
Operating loss
before impairment
on continued
and discontinued
operations (1,668) (1,768) (1,426) (4,862)
------------ ------------- ------------ ---------
Audited year ended 31 December
2016
USA Australia Unallocated Total
USD'000 USD'000 USD'000 USD'000
Income Statement
Revenue 13,158 3,670 - 16,828
Other income 400 2 43 442
Operating EBITDA 670 90 (2,038) (1,278)
Depreciation,
loss on disposal
of property,
plant and equipment
and impairment (1,924) (408) (398) (2,730)
Amortisation - (273) (1,394) (1,667)
Loss for the
year on continuing
operations (1,682) (787) (3,837) (6,306)
------------ ------------- ------------ ---------
Audited year ended 31 December
2016
USA Australia Unallocated Total
USD'000 USD'000 USD'000 USD'000
Balance Sheet
Total assets 34,642 6,759 6,046 47,447
Total liabilities (11,951) (3,547) (9,502) (25,000)
------------ ------------- ------------ ---------
Net assets 22,691 3,212 (3,456) 22,447
------------ ------------- ------------ ---------
3. DIVIDS
The Directors do not recommend the payment of a dividend for the period.
4. LOSS PER ORDINARY SHARE
Basic loss per Ordinary Share is calculated by dividing the net loss for the period attributable to ordinary shareholders by the weighted average number of Ordinary Shares in issue during the period. The calculation of the basic and diluted loss per Ordinary Share is based on the following data:
Unaudited
six months
ended Unaudited six Audited year
30 June months ended ended 31 December
2017 30 June 2016 2016
Continuing Continuing
and and discontinued
Continuing Continuing discontinued Continuing operations
operations operations operations operations
USD'000 USD'000 USD'000 USD'000 USD'000
Losses
Losses for
the purpose
of basic loss
per Ordinary
Share (2,555) (3,538) (5,306) (6,306) (7,809)
------------ -------------- ----------------- ----------------- -----------------
Number Number Number Number Number
'000 '000 '000 '000 '000
Number of
shares
Weighted average
number of
shares for
the purpose
of basic loss
per Ordinary
Share 746,683 746,683 746,683 746,683 746,683
------------ -------------- ----------------- ----------------- -----------------
Loss per Ordinary
Share
Basic and
diluted,
cents per
share (0.34) (0.47) (0.71) (0.84) (1.05)
------------ -------------- ----------------- ----------------- -----------------
5. OTHER INTEREST-BEARING LOANS AND BORROWING
Unaudited Unaudited Audited
six months six months year ended
ended ended
30 June 30 June 31 December
2017 2016 2016
USD'000 USD'000 USD'000
----------- ----------- ------------
Current liabilities
Finance lease liabilities 1,729 1,552 1,662
Unsecured bank facility 1,319 1,319 1,319
3,048 2,871 2,981
----------- ----------- ------------
Non-current liabilities
Finance lease liabilities 7,015 8,728 7,774
Shareholder loan 9,428 7,325 7,838
16,443 16,053 15,612
----------- ----------- ------------
6. SHARE CAPITAL
Unaudited Unaudited Audited
six months six months year ended
ended ended
30 June 30 June 31 December
2017 2016 2016
USD'000 USD'000 USD'000
----------- ----------- ------------
Allotted, issued and fully
paid
----------- ----------- ------------
746,682,805 Ordinary Shares
of 0.5 pence each 6,200 6,200 6,200
----------- ----------- ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BIGDCXXDBGRD
(END) Dow Jones Newswires
September 25, 2017 02:00 ET (06:00 GMT)
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