SIMEC Atlantis Energy Limited Preliminary Results Announcement (7370D)

TIDMSAE

RNS Number : 7370D

SIMEC Atlantis Energy Limited

28 June 2019

28 June 2019

SIMEC ATLANTIS ENERGY LIMITED

("Atlantis", the "Company" or the "Group")

Preliminary Results Announcement

SIMEC Atlantis Energy Limited, the global developer, owner and operator of sustainable energy projects with a diversified portfolio of more than 1,000 megawatts in various stages of development, is pleased to announce its preliminary results for the year ended 31 December 2018.

FINANCIAL HIGHLIGHTS

 
 --   The consolidated Group cash position at 31 December 2018 was 
       GBP9.3 million (2017: GBP5.6 million), including GBP2.4 million 
       held in MeyGen Limited (2017: GBP3.8 million). 
 --   The MeyGen project generated revenues of GBP2.1 million. 
 --   Overall Group losses for the year were GBP24.0 million (2017: 
       GBP10.6 million). The increase in the year on year loss of GBP13.4 
       million reflects the significant changes in the Group in the 
       period. Increased depreciation expense of GBP5 million and finance 
       costs of GBP1.5 million are the result of MeyGen becoming operational 
       in April and the acquisition of SUP in June. SUP acquisition 
       costs and financial results also contributed to the increased 
       loss. 
 --   Group total equity at 31 December 2018 of GBP119.6 million (2017: 
       GBP60.2 million). 
 --   In May 2018, Atlantis raised GBP5.0 million, before expenses, 
       through a five year bond with a coupon of 8 per cent, maturing 
       in 2023. In June 2018, Atlantis raised a further GBP20.0 million 
       before expenses from new and existing shareholders. Funds raised 
       continue to be used for incremental project development activities 
       across the Atlantis portfolio and to secure opportunities for 
       portfolio growth as well as working capital funding for the enlarged 
       Group. 
 --   Atlantis completed the sale of its stake in its Canadian joint 
       venture in December 2018. The cash transaction returned C$0.4 
       million to the Company. 
 

OPERATIONAL HIGHLIGHTS

 
 --   April 2018 saw the flagship MeyGen Phase 1A tidal energy project 
       enter its fully operational phase, with all four turbines successfully 
       installed and delivering power to the grid, resulting in revenue 
       generation. The array has generated over 17 GWh of sustainable 
       energy to date and has exported more electricity to grid than 
       any other tidal project. 
 --   In June 2018, the Company acquired the entire issued share capital 
       of SIMEC Uskmouth Power Limited ("SUP") from SIMEC UK Energy 
       Holdings Limited ("SIMEC"), a member of the GFG Alliance. 
   --   Consideration for the purchase was the issuance by the Company 
         of new shares to SIMEC, such that immediately following the 
         issuance of such shares, SIMEC became a 49.99 per cent shareholder 
         of the Company and Group. 
   --   Post-acquisition, Atlantis have commenced the world's first 
         full conversion of a power station from coal to 100 per cent 
         waste derived fuel, which will export 220MW of reliable baseload 
         power to the grid on completion. 
   --   In November 2018, the Environmental Planning and Permitting 
         ("EPP") contract and the Front-End Engineering and Design 
         ("FEED") contracts were both awarded. The FEED is expected 
         to take approximately 12 months to complete from commencement. 
   --   Heads of Terms were signed in November 2018 to sell a 25 
         per cent shareholding in the SUP conversion project for GBP32.9 
         million in cash to leading UK infrastructure fund manager 
         Equitix. The transaction is anticipated to complete post 
         FEED. 
 --   The Company agreed terms in November 2018 for its collaboration 
       with Development Agency for Normandy (AD Normandie Développement), 
       the regional agency for economic development in Normandy and 
       regional investment fund Normandie Participations, for the purpose 
       of developing a phased large-scale tidal power project in the 
       Raz Blanchard, Normandy, France, as well as fostering the marine 
       industry and local supply chain in the region more generally. 
 --   Atlantis announced in December 2018, that it had signed a EUR1 
       million grant agreement with the European Executive Agency for 
       Small and Medium-sized Enterprises via the European Maritime 
       and Fisheries Fund and its Sustainable Blue Economy call for 
       proposals. The grant will provide Atlantis and its supply chain 
       partner, Asturfeito SAU, EUR1 million in grant funding to support 
       its tidal turbine development programme. 
 
 

POST YEAR HIGHLIGHTS

 
 --   Atlantis announced in October 2018, that it had advanced plans 
       to enhance the existing 6MW MeyGen array with the addition of 
       two of the Company's new tidal turbines. When installed, these 
       new Atlantis turbines, which are capable of generating up to 
       2MW using more powerful generators and larger rotor diameters, 
       will use a new subsea connection hub and share a single export 
       cable. These innovations will significantly reduce project infrastructure 
       costs by removing the requirement for a dedicated export cable 
       for each turbine and should also result in reduced installation 
       costs. 
 --   In January 2019, Ian Wakelin joined the Board as an independent 
       non-Executive Director and Chairman of the Audit Committee. Ian 
       was previously Chief Executive Officer of Biffa plc, one of the 
       UK's largest waste management businesses, and led the IPO of 
       the business in 2016. 
 --   In February 2019 Atlantis announced that it had awarded a contract 
       to subsea engineering specialists ETA for the manufacture and 
       delivery of the world's most advanced subsea tidal turbine connection 
       system which will underpin the MeyGen extension activities known 
       as Project Stroma. 
 --   In March 2019, Atlantis raised over GBP5 million, before expenses, 
       through an equity fundraising to secure funding for the acquisition 
       of GHR. As a result of the revised transaction the net proceeds 
       will be used for the Company's general corporate purposes. 
 --   In May 2019, Atlantis announced that its turbine and engineering 
       services division will enter into a Technology Partnership and 
       Preferred Supplier Agreement ("TPPSA") with GE Energy Power Conversion 
       UK Ltd ("GE"), a global leader in power conversion, to deliver 
       the world's largest single rotor tidal turbine, the AR2000. 
 

Tim Cornelius, Chief Executive of Atlantis, commented:

"In many ways, 2018 was a breakthrough year for SIMEC Atlantis. In April, Phase 1A of our flagship MeyGen tidal energy project entered its fully operational phase helping us to grow revenues and, with all four turbines successfully installed, has now delivered over 17 GWh of predictable and sustainable energy to the grid. In June, we completed the acquisition of the 220MW Uskmouth power station.

Our ambition is to grow quickly to become the leading independent generator of sustainable energy in the UK and we are making significant steps towards achieving that goal: we have commenced work on the world's first conversion of a coal power station to 100 per cent waste derived fuel at Uskmouth; and we are expanding MeyGen with Phase 1B (Project Stroma) through the installation of two additional turbines.

Our sustainable energy projects are not just good business, they are making a meaningful contribution towards tackling some of the biggest issues facing society today: climate change and the war on plastics."

The full Annual Report and Group financial statements will be available to download from the Company's website www.simecatlantis.com later today and the Annual Report will be distributed to shareholders.

This announcement contains inside information

 
 Enquiries: 
 
  SIMEC Atlantis Energy Limited             Via FTI Consulting 
 Tim Cornelius, Chief Executive Officer 
 Andrew Dagley, Chief Financial Officer 
 
 Cantor Fitzgerald Europe 
  (Nominated Adviser and Joint Broker)    [phone] 
 Rick Thompson 
  Richard Salmond 
  David Porter 
 
 J.P. Morgan Cazenove                     [phone] 
 (Adviser and Joint Broker) 
 James Deal 
 Michael Wentworth Stanley 
 
 FTI Consulting                           [phone] 
 Ben Brewerton 
  Alex Beagley 
  James Styles 
 

CHAIRMAN'S STATEMENT

2018 was perhaps the most transformative year for our Group since our 2014 initial public offering, reflected not least in our change of name to SIMEC Atlantis Energy Limited following the reverse takeover of SIMEC Uskmouth Power Limited. This acquisition and the ensuing relationship with the SIMEC Group (part of the GFG Alliance) have added scale and momentum to our transition to a diversified, sustainable energy company. We entered 2019 with the announcement of our intention to acquire the Green Highland Renewables ("GHR") Group of companies from the GFG Alliance. Having assessed the available financing options for the Group to purchase GHR, it was determined that an alternative transaction structure would be in the interests of shareholders and we will provide further information in the near future. We have also continued our quest for geographic diversity, including through the formation of our new joint venture, Normandie Hydrolienne, which will be focused on the development of tidal energy projects to exploit the vast resources of the tides along the northern French coast.

Around the world, scientists are tracking the impacts of climate change, which is in turn forcing governments to act. The UK government has put moving to a cleaner, greener economy at the heart of its Industrial Strategy and is leading the world by introducing a bill in June 2019 to commit the government to a net zero emissions target. This means moving away from using conventional coal and gas-fired power to electricity generated from renewable sources such as tidal power, and achieving the ambitious aim of a carbon neutral economy by 2050. Generation continues from our flagship MeyGen project, which formally completed its construction phase in 2018 and has now produced more than 17 GWh of electricity, representing generation equivalent to the average annual consumption of some 5,500 UK households. This is more than any other tidal stream project in the world and demonstrates the pivotal position we have established in this sector. We are now proceeding with plans for the addition of two new turbines at the site together with a subsea hub, which is designed to permit connection of multiple turbines into a single subsea cable, allowing us to significantly reduce the balance of plant costs in future projects. This phase of the development is known as Project Stroma and, as part of the proposed funding package, we are investigating opportunities for replacement of the existing finance package to reflect the increasing maturity of the project. Project Stroma has already been awarded EUR16.8 million of revenue support funding from the European Commission's NER300 fund, which uses proceeds from the sale of carbon credits to support renewable energy and carbon capture projects.

South Wales is home to the 220MW Uskmouth power station conversion project, which represents one of the most exciting sustainable energy projects currently under development in the UK. Upon completion of the conversion from a coal fired power station, the plant is intended to deliver up to 220MW of baseload power to the grid by drawing solely on a fuel created from waste destined for landfill. In November 2018, the environmental planning and permitting contract and the Front-End Engineering and Design ("FEED") contract were awarded. In the same month, we were pleased to sign a Heads of Terms with leading UK infrastructure fund manager Equitix for the sale, subject to contract, of a 25 per cent stake in the project following completion of the FEED. This agreement implies a valuation for our 100 per cent stake of over GBP130 million.

Across the English Channel, northern France presents further opportunity for growth through the remarkable tidal resources of Normandy. Here we have entered into a collaboration with the regional agency for economic development and the regional investment fund, Normandie Participations, to form a joint venture company called Normandie Hydrolienne. This vehicle is dedicated to the development of tidal energy in the fast flowing Raz Blanchard, whose waters, together with those of neighbouring Alderney, could host up to 2GW of tidal turbines. Whilst these projects will take time to come to operational fruition, early planning is essential to enable us to carry forward the momentum gained recently in Scotland across to France.

Finally, on a global scale, we continue to seek out supply opportunities in Asia, Australia and North America for our marine energy technologies and services, including our new AR2000 tidal turbine and our range of engineering and project delivery skills across the sustainable energy spectrum.

The overall loss for the year reflects the development investment we continue to make in our flagship tidal energy and waste to energy projects, with consistent revenue generation from power sales expected as they come online over the next 24 months.

I would like to take this opportunity to express my thanks to all our colleagues, shareholders and stakeholders for their continuing commitment and support for the Company, which is highly appreciated and valued.

ANNUAL GENERAL MEETING

Our Annual General Meeting will be held on Friday 26 July 2019. Details of the resolutions to be proposed are set out in a separate Notice of Annual General Meeting, which accompanies this report for shareholders receiving hard copy documents, and which is available at www.simecatlantis.com for those who elected to

receive documents electronically.

John Neill

Chairman

27 June 2019

CHIEF EXECUTIVE OFFICER'S STATEMENT

In our 2017 Annual Report, I outlined our ambition to build a diversified portfolio of development and operational assets that could allow SIMEC Atlantis to quickly grow into one of the largest generators of sustainable energy in the UK. Since then, we have made a significant step towards that goal with the addition of the world leading Uskmouth waste-to-energy conversion project. Waste-to-energy complements our marine energy division and its operation of the flagship Meygen project, which has recently surpassed a world record 17GWh of predictable electricity generation exported to the grid in Scotland.

We are passionate about what we do at Atlantis. The ocean is the final frontier and offers a virtually limitless source of abundant energy. However, plastic waste threatens fragile marine ecosystems and energy mixes are changing faster than anyone could have previously anticipated, away from hydrocarbons in favour of renewable energy.

When it was designed and built in the 1950s in the Welsh city of Newport, the Uskmouth power station was intended to be run on the area's abundant local coal supply. Now, under an ambitious scheme for conversion, the plant is being repurposed to run on another abundant resource: waste. A successful conversion at Uskmouth could form the blueprint for other power stations destined to be decommissioned, providing instead an extended

period of valuable service in compliance with up-to-date emissions regulations and with materially lower levels of CO2 emissions. This project is expected to help the transition of the local economy and workforce in Newport from a historic reliance on coal to a new, sustainable future, while at the same time providing an economically viable alternative to landfill of waste and addressing the issue of non-recyclable plastics. The converted Uskmouth plant is intended to enter commercial operations in 2021 and will use pellets made from equal proportions of waste biogenic material, such as paper and cardboard, and other forms of waste, such as plastic. These pellets will be supplied by a joint venture set up between the GFG Alliance and N+P Group BV, a Dutch recycling group.

Unlike traditional waste incinerators, the primary purpose of the Uskmouth power station is the generation and sale of electricity, rather than the disposal of waste and the receipt of the associated fees from the producers of that waste. Rather than charging fees for waste disposal, the Uskmouth power station will buy fuel pellets, which are created from waste streams that are carefully processed to ensure strict adherence to an agreed specification

and high calorific value relative to raw waste. This is economically viable because of the high fuel quality and high efficiency of power station conversion, coupled with a low fuel price.

The project is governed by Best available techniques Reference documents ("BREFs") developed under the Industrial Emissions Directive and will adhere to all the applicable criteria set out within this legislation. As approximately 50 per cent of the energy pellets will be made up of biogenic derived waste, this component is

treated as carbon dioxide neutral because of its net-zero lifecycle emissions. Overall, we consider the conversion to be a sustainable approach, allowing an extension of the useful life of an otherwise redundant power station asset and the recovery of useful and high-quality energy from materials that could otherwise end up either in landfill or being incinerated in less efficient facilities. The conversion is a function of the circular economy, kicking into action to address the twin issues of waste repurposing and the need for dispatchable power, and is a great contribution towards the diversification of the Group's renewable energy portfolio.

These strides towards our goal have been made alongside continued development of our tidal energy business, in particular the record-breaking achievements at MeyGen and the future plans for Project Stroma, which will result in the deployment of two new turbines at the site.

None of this would have been possible without our people. What started over a decade ago as a small team of talented engineers has now grown to nearly 100 innovative, tenacious and dedicated experts with a passion for what we are doing. As we continue to seek new opportunities to be pioneers in the field of sustainable energy, I do not underestimate the importance and value of our people. Their commitment and dedication are unwavering,

creating value for the business on a daily basis. They are a source of inspiration for our executive management team. I would also be unable to deliver this positive outlook for the year ahead without the loyalty, belief and support of our shareholders, investors, government stakeholders and technology and construction partners. Thank you to everyone who has been part of the Atlantis journey so far and welcome to the next exciting chapter!

2018 PERFORMANCE

The Group recorded a loss after tax of GBP24.0 million for the year ended 31 December 2018, compared with a GBP10.6 million loss in the prior year. This year on year movement is attributable to the MeyGen Phase 1A project entering its operational phase at the end of Q1 2018, and the acquisition of SUP in June 2018. These reflect the Group's continued investment in the development of energy projects.

Revenue of GBP2.2 million for the year (2017: GBP0.3 million), includes an increase of GBP1.8 million from power sales from the Meygen Phase 1A project.

Other income of GBP0.9 million (2017: GBP3.0 million) includes liquidated damages of GBP0.9 million awarded in 2018 (2017: GBP1.8 million). The prior year also included GBP1.1 million of grant income.

Total expenses for the year were GBP24.3 million (2017: GBP12.8 million). The increase of GBP11.5 million relates to power generation operating costs at MeyGen, the current running costs at SUP, depreciation of GBP5.4 million on these projects assets and one off acquisition costs of GBP3.6 million for SUP.

The Group's closing net asset balance was GBP119.6 million (2017: GBP60.2 million), the increase is mainly in relation to the acquisition of SUP, consolidating GBP53.4 million of net assets on the date of acquisition.

In May 2018, Atlantis raised GBP5.0 million, before expenses, through a five year bond with a coupon of 8 per cent, maturing in 2023. In June 2018, Atlantis raised a further GBP20.0 million before expenses from new and existing shareholders. Funds raised continue to be used for incremental project development activities across the Atlantis portfolio and to secure opportunities for portfolio growth as well as working capital funding for the

enlarged Group.

Post year-end, the Company raised GBP5 million, before expenses, through an equity fundraising to secure funding for the acquisition of GHR. As a result of the revised transaction the net proceeds will be used for the Company's general corporate purposes.

Timothy Cornelius

Chief Executive Officer

27 June 2019

 
   Consolidated statement of profit or loss and other comprehensive 
    income 
    Year ended 31 December 2018 
                                             Note        2018         2017 
                                                      GBP'000      GBP'000 
 
Revenue                                        4          2,217          301 
Other gains and losses                         5            949        2,984 
 
Employee benefits expense                      6        (5,562)      (4,696) 
Subcontractor costs                                     (4,396)      (1,359) 
Depreciation and amortisation                10,11      (7,299)      (1,878) 
Acquisition costs                                       (4,173)        (600) 
Research and development                                      -         (81) 
Other operating expenses                                (2,902)      (4,193) 
                                                    -----------  ----------- 
Total expenses                                         (24,332)     (12,807) 
                                                    -----------  ----------- 
 
Results from operating activities                      (21,166)      (9,522) 
Finance costs                                  7        (2,998)      (1,617) 
 Loss before tax                                       (24,164)     (11,139) 
 
Tax credit                                     8            120          575 
                                                    -----------  ----------- 
 Loss for the year                             9       (24,044)     (10,564) 
                                                    -----------  ----------- 
 
Other comprehensive income 
Items that are or may be reclassified 
 subsequently to profit or loss 
Exchange differences on translation 
 of foreign operations                                        -          (6) 
Total comprehensive loss for the 
 year                                                  (24,044)     (10,570) 
                                                    ===========  =========== 
 
Loss attributable to: 
Owners of the Group                                    (22,579)     (10,843) 
Non-controlling interests                     12        (1,465)          279 
                                                    ===========  =========== 
 
Total comprehensive income attributable 
 to: 
Owners of the Group                                    (22,579)     (10,849) 
Non-controlling interests                     12        (1,465)          279 
                                                    ===========  =========== 
 
Loss per share 
Basic and diluted loss per share              25         (0.09)       (0.09) 
                                                    ===========  =========== 
 
 

No dividends were proposed or declared in respect of any of the years presented above.

 
Statements of financial position 
 As at 31 December 2018 
                                                  Group                    Company 
                                 Note       2018         2017         2018         2017 
                                          GBP'000      GBP'000      GBP'000      GBP'000 
Assets 
Property, plant and 
 equipment                        10       142,247       66,678            -            5 
Intangible assets                 11        32,753       34,291        1,829        2,091 
Investments                       12             -            -       63,278        5,369 
Loans receivable                  13             -          168       12,164       12,282 
Trade and other receivables       14             -            -       39,432       19,367 
Non-current assets                         175,000      101,137      116,703       39,114 
                                       -----------  -----------  -----------  ----------- 
 
Trade and other receivables       14         4,156        3,415          700        1,094 
Inventory                         15           986            -            -            - 
Cash and cash equivalents         16         9,267        5,579        5,342           96 
Current assets                              14,409        8,994        6,042        1,190 
                                       -----------  -----------  -----------  ----------- 
 
Total assets                               189,409      110,131      122,745       40,304 
                                       ===========  ===========  ===========  =========== 
 
Liabilities 
Trade and other payables          17         8,523        5,212        2,107        1,564 
Provisions                        18         1,619        2,206           41          291 
Loans and borrowings              19         2,765        5,524          130          174 
Current liabilities                         12,907       12,942        2,278        2,029 
                                       -----------  -----------  -----------  ----------- 
 
Provisions                        18        14,282        1,314            -            - 
Loans and borrowings              19        38,855       32,385          377          361 
Deferred tax liabilities          20         3,802        3,255            -            - 
                                       -----------  -----------  -----------  ----------- 
Non-current liabilities                     56,939       36,954          377          361 
                                       -----------  -----------  -----------  ----------- 
 
Total liabilities                           69,846       49,896        2,655        2,390 
                                       -----------  -----------  -----------  ----------- 
Net assets                                 119,563       60,235      120,090       37,914 
                                       ===========  ===========  ===========  =========== 
 
Equity 
Share capital                     21       178,218       95,030      178,218       95,030 
Capital reserve                   22        12,665       12,665            -            - 
Translation reserve               23         7,073        7,161        (227)        (227) 
Share option reserve              24         3,224        3,477        3,224        3,477 
Accumulated losses                        (88,479)     (66,425)     (61,125)     (60,366) 
                                       -----------  -----------  -----------  ----------- 
Total equity attributable 
 to owners of the Company                  112,701       51,908      120,090       37,914 
Non-controlling interests         12         6,862        8,327            -            - 
                                       -----------  -----------  -----------  ----------- 
Total equity                               119,563       60,235      120,090       37,914 
                                       ===========  ===========  ===========  =========== 
 
 
Statements of                            Attributable to owners of the Company 
changes in 
equity 
Year ended 31 
December 2018 
                      ---------------------------------------------------------------------------- 
                                                                     Share                              Non- 
                       Share     Capital     Translation   Option   option   Accumulated             controlling 
                Note  capital     reserve       reserve      fee    reserve     losses     Total      interest     Total 
                      GBP'000    GBP'000       GBP'000     GBP'000  GBP'000    GBP'000    GBP'000     GBP'000     GBP'000 
Group 
At 1 January 
 2017                  91,220        12,665         7,167        6    3,191     (55,666)    58,583         8,048    66,631 
--------------  ----  -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
Total 
comprehensive 
income for 
the year 
Loss for the 
 year                       -             -             -        -        -     (10,843)  (10,843)           279  (10,564) 
Other 
 comprehensive 
 expense                    -             -           (6)        -        -            -       (6)             -       (6) 
--------------  ----  -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
Total 
 comprehensive 
 income for 
 the year                   -             -           (6)        -        -     (10,843)  (10,849)           279  (10,570) 
 
Transactions 
with owners, 
recognised 
directly in 
equity 

--------------  ----  -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
Issue of 
 ordinary 
 shares          21     3,810             -             -        -        -            -     3,810             -     3,810 
Recognition of 
 share-based 
 payments        24         -             -             -        -      364            -       364             -       364 
Transfer 
 between 
 reserves                   -             -             -      (6)     (78)           84         -             -         - 
--------------  ----  -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
Total 
 transactions 
 with owners            3,810             -             -      (6)      286           84     4,174             -     4,174 
                      -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
At 31 December 
 2017                  95,030        12,665         7,161        -    3,477     (66,425)    51,908         8,327    60,235 
                      -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
 
Total 
comprehensive 
income for 
the year 
Loss for the 
 year                       -             -             -        -        -     (22,579)  (22,579)       (1,465)  (24,044) 
Other 
comprehensive 
income                      -             -             -        -        -            -         -             -         - 
--------------  ----  -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
Total 
 comprehensive 
 income for 
 the year                   -             -             -        -        -     (22,579)  (22,579)       (1,465)  (24,044) 
 
Transactions 
with owners, 
recognised 
directly 
in equity 
Issue of 
 ordinary 
 shares          21    83,188             -             -        -        -            -    83,188             -    83,188 
Recognition of 
 share-based 
 payments        24         -             -             -        -      184            -       184             -       184 
Transfer 
 between 
 reserves                   -             -          (88)        -    (437)          525         -             -         - 
--------------  ----  -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
Total 
 transactions 
 with owners           83,188             -          (88)        -    (253)          525    83,372             -    83,372 
                      -------  ------------  ------------  -------  -------  -----------  --------  ------------  -------- 
At 31 December 
 2018                 178,218        12,665         7,073        -    3,224     (88,479)   112,701         6,862   119,563 
                      =======  ============  ============  =======  =======  ===========  ========  ============  ======== 
 
 
 
   Consolidated statement of cash flows 
    Year ended 31 December 2018 
                                               Note       2018         2017 
                                                       GBP'000      GBP'000 
Cash flows from operating activities 
   Loss for the year                                    (24,164)     (11,139) 
Adjustments for: 
Grant income                                    5            (2)      (1,052) 
Interest income                                 5            (8)         (86) 
Depreciation of property, plant and 
 equipment                                      10         5,782          384 
Amortisation of intangible asset                11         1,517        1,494 
Finance costs                                   7          2,998        1,617 
Share-based payments                            6            184          364 
Provisions (written back) / made 
 during the year                                           (607)          610 
Bad debt provision                              13             -        1,040 
Net foreign exchange                                          96           27 
Operating cash flows before movements 
 in working capital                                     (14,204)      (6,741) 
 
Movements in trade and other receivables                   1,044        1,734 
Movements in trade and other payables                      (778)         (69) 
                                                     -----------  ----------- 
Net cash used in operating activities                   (13,938)      (5,076) 
                                                     -----------  ----------- 
 
Cash flows from investing activities 
Purchase of property, plant and equipment                  (802)     (10,306) 
Proceeds from grants received                                  -          748 
Expenditure on project development                             -         (50) 
Cash from disposal of joint venture             12           168            - 
Acquisition of subsidiary, net of 
 cash acquired                                  12            57            - 
Net cash used in investing activities                      (577)      (9,608) 
                                                     -----------  ----------- 
 
Cash flows from financing activities 
Proceeds from grants received                                 16        3,537 
Proceeds from issue of shares                   21        20,000        4,050 
Share issuance cost                             21         (897)        (240) 
Proceeds from borrowings                        19         4,970        4,950 
Repayment of borrowings                         19       (5,192)      (2,100) 
Interest paid                                   19         (696)        (166) 
Deposits released/(pledged)                                  864        (132) 
Net cash from financing activities                        19,065        9,899 
                                                     -----------  ----------- 
 
Net increase/(decrease) in cash and 
 cash equivalents                                          4,550      (4,785) 
Cash and cash equivalents at 1 January                     3,801        8,586 
Cash and cash equivalents at 31 December        16         8,351        3,801 
                                                     ===========  =========== 
 

Further detail may be read and downloaded from the company website at www.simecatlantis.com.

Annual General Meeting

Atlantis also announces that a Notice will be sent to shareholders to convene the Annual General Meeting ("AGM") of the Company.

The AGM will be held at the offices of Ashurst LLP, Broadwalk House, 5 Appold Street, London EC2A 2HA at 11.00a.m. (London time) on Friday 26 July 2019. The AGM Notice will also be made available on the Company's website at www.simecatlantis.com.

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 [e-mail] or visit www.rns.com.

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June 28, 2019 02:00 ET (06:00 GMT)