for the Period Ended 31 December 2022
Directors report | |
Profit and loss | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 31 December 2022
Principal activities of the company
Additional information
The directors present their annual report and the audited consolidated financial statements for the year ended 31 December 2022. This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with section 414B, the directors have taken the exemption from preparing a Strategic Report.Principal activitiesThe principal activity of the company and Group is the development of a patented method of hydrogen and oxygen production together with the development of a gas separation technique which enables hydrogen to be produced as ‘Green Hydrogen’ and oxygen to medical grade purity.The company was a holding company for the Group and is the main trading company. In February 2022, a newly formed parent company, Clean Power Hydrogen plc, was put in place by a share for share exchange and this was then listed on the Alternative Investment Market (‘AIM’) in order to raise equity to fund the further development of the Group.Business review and future developments2022 was a transformational year for the Group. The IPO in February 2022, raising £30m and introducing new institutional and strategic investors, was a significant achievement, especially in the context of the market conditions that existed at the time. The funding received enabled our activity to accelerate towards our strategic objectives.The Group recorded a loss of £3,062,000 for the financial year (2021: loss of £3,317,000) and at 31 December 2022 the Group had net liabilities of £3,053,000 (2021: £352,000). The nature of a specific medium term incentive scheme for a key executive has also impacted the results with a credit of £1,965,000 (2021: charge of £1,227,000). This arrangement was converted from a cash or equity scheme into an equity settled basis in February 2022 and the liability was derecognised in 2022. Excluding net exceptional items the loss for the year would be £4,653,000 reflecting the greatly increased activity and development since the AIM listing and the raising of additional funds (2021: loss of £2,090,000 excluding the LTIP charge).We are proud to be at the core of the net zero transition and, despite 2022 being a very difficult year for local communities in the UK and global economies, the market opportunity for clean hydrogen has never been stronger and more real. We see this emphasised by the Inflation Reduction Act in the US, the EU’s Green Industrial Plan and more recently in the UK Government’s Powering Up Britain Strategy. The Company’s aim is to become a globally recognised and highly profitable designer, manufacturer and licensor of its Membrane-Free Electrolyser TM (“MFE”), with at least a 4GW production capacity by 2030.We made strong commercial progress over the last twelve months, signing three partnerships to licence manufacture in Germany, New Zealand, Ireland and Oman, and to sell across multiple countries in Europe, Middle East and Australasia. This lays the groundwork for the rapid, controlled ramping up of our differentiated technology. Our commercial strategy, underpinned by our strong IP, is a key differentiator from our competitors.A decade of dedicated research and product development has resulted in the creation of a unique technology which is designed to deliver a modular solution to the hydrogen production market in a cost-effective, scalable, resilient, reliable and sustainable way.During 2022, the Group made good progress in our transition from an R&D technology business towards a commercial manufacturing operation. Whilst the delays incurred and reported have been frustrating, they have also proved to be a very positive learning event for the Group and, as a result, we have significantly improved our internal controls, project and risk management, and engineering discipline, whilst making strong and necessary improvements in the calibre of our senior management and respective teams. The directors are now confident that the Group is on a robust and disciplined engineering pathway to address and resolve the issues, which we expect to be in the near term.Events after the balance sheet dateSubsequent to the year ended 31 December 2022, GHFG Limited one of the Company’s licence partners, undertook certain actions which in accordance with legal advice constituted a repudiatory breach of the licence agreement by GHFG Limited. In response to GHFG's actions, on 5 June 2023 the Company accepted the repudiatory breach by GHFG Limited, thereby terminating the Licence Agreement with immediate effect. The Company also notified GHFG Limited that it intends to claim damages from GHFG and retain all sums paid by it to CPH2 pursuant to the Licence Agreement to date. As at the date of this report, no claim has been put forward to GHFG Limited, and accordingly it is not possible to quantify the financial impact of this event. The December 2022 financial statements have not been adjusted.DividendsDividends of £nil (2021: £nil) were paid during the year.
Directors
The directors shown below have held office during the whole of the period from
1 January 2022 to 31 December 2022
The director shown below has held office during the period of
1 January 2022 to 16 June 2022
The director shown below has held office during the period of
1 January 2022 to 28 February 2022
The director shown below has held office during the period of
6 December 2022 to 31 December 2022
The director shown below has held office during the period of
1 December 2022 to 31 December 2022
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And signed on behalf of the board by:
Name:
Status: Director
for the Period Ended
2022 | 2021 | |
---|---|---|
| £ | £ |
Turnover: | | |
Cost of sales: | | ( |
Gross profit(or loss): | | |
Administrative expenses: | ( | ( |
Other operating income: | | |
Operating profit(or loss): | ( | ( |
Interest receivable and similar income: | | |
Interest payable and similar charges: | ( | ( |
Profit(or loss) before tax: | ( | ( |
Tax: | | |
Profit(or loss) for the financial year: | ( | ( |
As at
Notes | 2022 | 2021 | |
---|---|---|---|
| £ | £ | |
Called up share capital not paid: | | | |
Fixed assets | |||
Intangible assets: | 3 | | |
Tangible assets: | 4 | | |
Total fixed assets: | | | |
Current assets | |||
Stocks: | 5 | | |
Debtors: | 6 | | |
Cash at bank and in hand: | | | |
Total current assets: | | | |
Creditors: amounts falling due within one year: | 7 | ( | ( |
Net current assets (liabilities): | ( | | |
Total assets less current liabilities: | ( | | |
Creditors: amounts falling due after more than one year: | 8 | ( | ( |
Accruals and deferred income: | ( | ( | |
Total net assets (liabilities): | ( | ( | |
Capital and reserves | |||
Called up share capital: | | | |
Share premium account: | | | |
Other reserves: | ( | | |
Profit and loss account: | ( | ( | |
Total Shareholders' funds: | ( | ( |
The notes form part of these financial statements
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 December 2022
Basis of measurement and preparation
Turnover policy
Tangible fixed assets depreciation policy
Intangible fixed assets amortisation policy
Other accounting policies
for the Period Ended 31 December 2022
2022 | 2021 | |
---|---|---|
Average number of employees during the period | | |
for the Period Ended 31 December 2022
Goodwill | Other | Total | |
---|---|---|---|
Cost | £ | £ | £ |
At 1 January 2022 | | | |
Additions | | | |
Disposals | ( | ( | |
Revaluations | |||
Transfers | |||
At 31 December 2022 | | | |
Amortisation | |||
At 1 January 2022 | | | |
Charge for year | | | |
On disposals | ( | ( | |
Other adjustments | |||
At 31 December 2022 | | | |
Net book value | |||
At 31 December 2022 | | | |
At 31 December 2021 | | |
for the Period Ended 31 December 2022
Land & buildings | Plant & machinery | Fixtures & fittings | Office equipment | Motor vehicles | Total | |
---|---|---|---|---|---|---|
Cost | £ | £ | £ | £ | £ | £ |
At 1 January 2022 | | | | | ||
Additions | | | | | ||
Disposals | ( | ( | ( | ( | ||
Revaluations | ||||||
Transfers | ||||||
At 31 December 2022 | | | | | ||
Depreciation | ||||||
At 1 January 2022 | | | | | ||
Charge for year | | | | | ||
On disposals | ( | ( | ( | ( | ||
Other adjustments | ||||||
At 31 December 2022 | | | | | ||
Net book value | ||||||
At 31 December 2022 | | | | | ||
At 31 December 2021 | | | | |
for the Period Ended 31 December 2022
2022 | 2021 | |
---|---|---|
£ | £ | |
Stocks | | |
Total | | |
for the Period Ended 31 December 2022
2022 | 2021 | |
---|---|---|
£ | £ | |
Trade debtors | | |
Prepayments and accrued income | | |
Other debtors | | |
Total | | |
for the Period Ended 31 December 2022
2022 | 2021 | |
---|---|---|
£ | £ | |
Amounts due under finance leases and hire purchase contracts | | |
Trade creditors | | |
Taxation and social security | | |
Accruals and deferred income | | |
Other creditors | | |
Total | | |
for the Period Ended 31 December 2022
2022 | 2021 | |
---|---|---|
£ | £ | |
Amounts due under finance leases and hire purchase contracts | | |
Total | | |
for the Period Ended 31 December 2022