Source - LSE Regulatory
RNS Number : 2718Q
CAP-XX Limited
25 February 2021
 

 

Dissemination of a Regulatory Announcement that contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.

 

 

 

25 February 2021

 

 

CAP-XX Limited

("CAP-XX" or the "Company")

 

Interim Results for the half-year ended 31 December 2020

 

 

CAP-XX Limited, a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems, is pleased to announce its interim results for the half-year ended 31 December 2020.

 

Key highlights

 

·    Adjusted EBITDA profit was A$0.32 million compared to the corresponding half-year loss of A$(0.44 million)*.

·     EBITDA loss of A$0.9 million* (2019: loss of A$0.8 million*) is in line with the corresponding half-year period to 31 December 2019, but does include the Murata Project expenditure of A$2.0 million (2019: Nil).

·      Total Sales Revenue of A$2.1 million (2019: A$1.9 million) up 10%

·      Product Revenue of A$1.7 million (2019: A$1.4 million) is up 26%

·      Royalty and license fees were A$0.4 million (2019: A$0.6 million)

·     Project to transfer the former Murata manufacturing assets has made excellent progress with key project deliverables and milestones on track

·    Order book double the level as at the same time last year driven by IoT markets. Customer demand building. Potential demand already exceeds annual capacity

·    Increasing interest from global multinational companies. Design win achieved with Tier 1 Auto supplier. Approved as supplier to global smart phone manufacturer

·     Vigorously pursuing several companies for patent infringement

·    Operating expenses of A$2.5 million (2019: A$ 2.8 million), excluding share-based payments expense and Murata project expenses, reduced due to lower patent infringement expenses and overseas travel

·    Cash reserves at the end of December 2020 were A$0.5 million (2019: A$1.8 million) which does not include the proceeds of the R&D Tax Rebate of A$3.1 million received in January 2021

 

* EBITDA excludes amortisation of employee share options. Adjusted EBITDA excludes amortisation of employee share options, Murata project costs and any related R&D tax rebate, patent infringement expenses and AASB16 lease costs

Anthony Kongats, CEO of CAP-XX said:

"We are delighted with both the progress of the Murata project and the strength of the underlying business, against the unprecedented background resulting from Covid-19. We enter the second half of the year with a strong order book and rising enquiry levels as we raise production levels at our newly installed manufacturing facility."

Electronic copies of CAP-XX's interim results for the half-year ended 31 December 2020 will shortly be available from the Company's website: www.cap-xx.com.

 

 

For further information contact:

 

CAP-XX Limited

Anthony Kongats (Chief Executive Officer)                                 +61 (0) 2 9428 0139

 

Kreab (Financial PR)

Robert Speed                                                                              +44 (0) 20 7074 1800

 

Allenby Capital (Nominated Adviser and Broker)

David Hart / Alex Brearley (Corporate Finance                           +44 (0) 20 3328 5656

Tony Quirke (Sales and Corporate Broking)

 

 

More information is available at www.cap-xx.com

 

Notes to Editors:

 

CAP-XX (LSE: CPX) is a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a space-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com

 

Chairman's statement

The first half of the current financial year has been characterised by strong sales demand. Product sales at A$1.7m are up 26% on the corresponding period last year (A$1.4m) and the order book at the end of December 2020 was 75% higher than at the same time last year. Furthermore, since the period end the order book has continued to grow and as at the end of January stood at over 100% higher than at the end of January 2020. Pleasingly, the growth in the order book is well spread, coming from all geographic regions and from different Internet of things (IoT) related market segments. Conversely, Royalty payments from AVX and Murata have stagnated. Total revenue was up 10% at A$2.1m compared to A$1.9m. The reported Net Loss for the period was A$(1.2m) including Murata project expenses of A$2.0m. This compared to a Net Loss of A$(1.0m) for the corresponding period last year. If project costs and their related R&D tax rebate, patent infringement expenses, amortisation of employee share options and AASB16 lease expenses are excluded, then the adjusted EBITDA profit was A$0.32m compared to a loss of A$(0.44m) for the corresponding period last year. Cash at the end of December 2020 was A$0.5m before the receipt of the A$3.1m R&D tax rebate in early January 2021.

 

Our sales and marketing focus on IoT market segments has delivered good results. The Board believes that demand for both non-cellular and cellular IoT devices is growing rapidly.  Sales for automotive accessories, electronic locks and battery-less energy harvesting products have been particularly strong. At the same time, the Company achieved several new design wins in wearables, consumer, medical and automotive products. Pleasingly, the Company is seeing increasing interest in its products from global multinational companies. The Company has notably achieved a design win with a global Tier-1 automotive component supplier for passenger vehicle door locking and climate control applications and is working on a second project related to data logging with the same Tier-1 supplier as it completes the formal supplier accreditation process.  This Tier-1 supplier was previously a customer of Murata.  In addition, CAP-XX has been approved as a supplier by a leading global smart phone manufacturer. In the area of energy harvesting, the Company is working with Epishine of Sweden and ePeas of Belgium to introduce battery-less solutions for a range of IoT products. The three companies will be jointly hosting a training webinar for prospective customers next month. Announcements of other collaborations are expected over the coming months.

 

As previously reported, the global pandemic has continued to impact the Company most noticeably in our various manufacturing activities. The Company had planned and agreed to bring in a number of Japanese engineers and experts to assist it with the commissioning of the new production lines at Seven Hills. However, global travel restrictions, limited international flights and mandatory hotel quarantine requirements, made this impossible. Subsequently, the Company's engineers, with the assistance of Murata and other Japanese equipment suppliers, revised the plans for the commissioning of the production lines to continue under remote assistance and guidance from Japan. It is a credit to everyone involved that the Company was still able to complete the commissioning of the production lines and construction of the new 3,300 sq. metre facility within the original budget proposed, which was set well before the start of the pandemic.

 

The electrode, DMF and DMT production lines are now commissioned and operational, with product shipping to customers. The current output and key performance metrics are currently tracking in line with our expectations. As expected at this stage of production, the Company is continuing to address small incremental improvements and is hiring additional staff for the Seven Hills facility. We expect to see steady improvement over the remainder of 2021. The Board is confident that target outputs and other key performance metrics will be reached by the end of 2021 as initially planned. The commissioning of the fourth production line, the DMH line, is still planned for the latter half of 2021, with production expected to start in early 2022 as time and resources allow and subject to customer demand.

 

CAP-XX's Malaysian operations have also been impacted by the pandemic. Various Malaysian government mandated lockdowns have restricted the Company's ability to increase output as fast as management would have liked in response to the growing sales order book. Most noticeably, we have faced delays in recruiting additional staff and have been unable to travel from Seven Hills to Malaysia to oversee pre-production manufacturing of new products and processes. Nevertheless, CAP-XX has successfully increased output and expects output to increase further over the coming months.

 

R&D activities continue to progress and promising developments in new intellectual property were made to reduce supercapacitor production costs, increase cell voltage and improve product performance, using new materials.

 

Licensing remains an important revenue stream for CAP-XX and the Company continues to defend its intellectual property. CAP-XX continues to vigorously pursue its patent infringement action against Maxwell Technologies, now a wholly owned subsidiary of Tesla Inc. and other companies. The same Delaware court which ruled in favour of CAP-XX against Ioxus is also hearing the case against Maxwell Technologies and has issued a timetable for resolution of this matter. Court mediation is scheduled for September 2021 and if the matter is not resolved trial is scheduled for October 2022. The Board remains optimistic of the Company's prospects in this matter. CAP-XX is continuing to pursue Ioxus for the payment of the awarded damages. However, it remains unclear whether Ioxus will be capable of paying. The Company is also in discussions with other companies about licencing opportunities.

 

The Board is confident that the commissioning of the Murata production lines will transform the Company's revenue position with a consequential benefit to cash flow and the cash position of the Company. 

 

 

Patrick Elliott

Chairman

 

 

 

 

 

 

CAP-XX Limited

Consolidated statement of profit or loss

For the half-year ended 31 December 2020

 

 

Consolidated

 

 

 

Half-year 2020

Half-year 2019

 

 

 

 

Currency: Australian Dollars

 

$

$

 

 

 

 

Revenue from sale of goods and services

 

2,126,564

1,932,591

Cost of sale of goods and services

 

(1,158,340)

(862,558)

Gross margin (loss) on sale of goods and services

 

968,224

1,070,033

 

 

 

 

Other revenue

 

501

9,964

Other income

 

2,292,781

941,678

 

 

 

 

General and administrative expenses

 

(944,949)

(1,205,098)

Process and engineering expenses

 

(229,994)

(478,521)

Selling and marketing expenses

 

(437,791)

(404,326)

Research and Development expenses

 

(740,021)

(746,771)

Project expenses

 

(2,017,614)

-

Share based payments

 

(68,192)

(173,774)

Other expenses

 

(67,250)

(42,127)

(Loss) before income tax

 

(1,244,305)

(1,028,942)

 

 

 

 

Income tax benefit/(expense)

 

-

-

Net loss after income tax for the half year

 

(1,244,305)

(1,028,942)

 

 

 

 

(Loss) attributable to members of CAP-XX Limited

 

(1,244,305)

(1,028,942)

 

 

 

 

Loss per share attributable to the ordinary equity holders of the company

 

Cents

Cents

Basic loss per share

 

(0.28)

(0.32)

Diluted loss per share

 

(0.28)

(0.32)

 

 

 

 

         

 

 

 

CAP-XX Limited

Consolidated statement of comprehensive income

For the half year ended 31 December 2020

 

 

 

Consolidated

 

 

 

 

 

 

 

 

2020

2019

 

Currency: Australian Dollars

 

$

$

 

Loss for the half year

 

(1,244,305)

(1,028,942)

 

Other comprehensive income

 

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

102,943

(13,919)

 

Other comprehensive loss for the half year, net of tax

 

            102,943

            (13,919)

 

Total comprehensive loss for the half year attributable to owners of CAP-XX Limited

 

      (1,141,362)

      (1,042,861)

 

 

 

 

  

 

 

CAP-XX Limited

Consolidated statement of financial position

As at 31 December 2020

 

 

 

                          Consolidated

 

 

31 December 2020

31 December 2019

 

 

 

 

 

 

 

Currency: Australian Dollars

 

$

$

 

 

 

 

 

 

 

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

469,472

1,751,424

 

Receivables

 

455,454

466,152

 

Inventories

 

1,041,169

1,503,159

 

Other

 

5,698,264

1,629,358

 

Total current assets

 

7,664,359

5,350,093

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

2,624,744

1,110,317

 

Right of Use Assets

 

3,059,608

-

 

Other

 

204,808

236,507

 

Total non-current assets

 

5,889,160

1,346,824

 

 

 

 

 

 

 

TOTAL ASSETS

 

13,553,519

6,696,917

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Payables

 

1,489,078

546,399

 

Lease Liabilities

 

268,051

-

 

Advance payments - Current

 

1,442,900

 

 

Provisions

 

1,401,354

833,431

 

Total current liabilities

 

4,601,383

1,379,830

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

Lease Liabilities

 

2,241,620

 

 

Provisions

 

53,332

41,738

 

Total non-current liabilities

 

2,294,952

41,738

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

6,896,335

1,421,568

 

 

 

 

 

 

 

NET ASSETS

 

6,657,184

5,275,349

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

Contributed equity

 

108,153,306

101,915,665

 

Reserves

 

6,461,120

6,192,848

 

Accumulated losses

 

(107,957,242)

(102,833,164)

 

TOTAL EQUITY

 

6,657,184

5,275,349

 

 

 

 

 

CAP-XX Limited

Consolidated statements of changes in equity

For the half-year ended 31 December 2020

 

Consolidated

 

 

 

 

Contributed

Equity

$

Reserve

$

Accumulated losses

$

Total

$

 

 

 

 

 

 

Balance at 1 July 2019

 

101,915,665

6,032,993

(101,804,222)

6,144,436

Loss for the period as reported in the 2019 financial statements

 

              

(4,908,715)

(4,908,715)

 

Other comprehensive loss 

 

- 

               (22,894)

-

 

(22,894)

Transactions with owners in their capacity as owners:

 

 

 

 

 

Contributions of equity, net of transaction costs and  tax

 

6,094,441

 

 

6,094,441

Employee share options ‑ value of employee services

 

 

-

279,886

-

279,886

 

 

 

 

 

 

Balance at 30 June 2020

 

108,010,106

6,289,985

(106,712,937)

 7,587,154

 

Profit for the period as reported in the 2020 interim financial statements

 

- 

-

(1,244,305)

(1,244,305)

Other comprehensive income 

 

- 

               102,943

   -

 

102,943

Transactions with owners in their capacity as owners:

 

 

 

 

 

Contributions of equity, net of transaction costs and tax

 

143,200          

 - 

 - 

143,200

Employee share options ‑ value of employee services

 

-

68,192

-

68,192

 

 

 

 

 

 

Balance at 31 December 2020

 

108,153,306

6,461,120

 (107,957,242)

6,657,184

 

 

 

 

 

 

 

 

 

 

 

 

           

CAP-XX Limited

Consolidated Statement of Cash Flows

For the half-year ended 31 December 2020

 

 

Consolidated

 

 

Half-year        2020

Half-year        2019

 

 

 

 

Currency: Australian Dollars

 

$

$

 

 

 

 

Cash flows from operating activities

 

 

 

Receipts from customers (inclusive of goods and services tax)

 

2,460,431

1,913,899

Payments to suppliers and employees (inclusive of goods and services tax)

 

(5,397,193)

(3,642,199)

 

 

(2,936,762)

(1,728,300)

Tax credit received

 

-

1,592,042

Interest received

 

501

9,964

Net cash (outflow) from operating activities

 

(2,936,261)

(126,294)

 

 

 

 

Cash flows from investing activities

 

 

 

Payments for property, plant and equipment

 

(1,178,792)

(537,519)

Net cash (outflow) from investing activities

 

(1,178,792)

(537,519)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from issue of shares

 

143,200

-

Advance payments

 

1,442,900

-

Net cash inflow from financing activities

 

1,586,100

-

 

 

 

 

Net (decrease) in cash and cash equivalents

 

(2,528,953)

(663,813)

Cash and cash equivalents at the beginning of the half-year

 

2,895,482

2,429,156

Effects of exchange rate changes on cash and cash equivalents

 

102,943

(13,919)

Cash and cash equivalents at the end of the half-year

 

 

469,472

1,751,424

 

 

 

 

 

 

 

 

This general purpose interim financial report, for the half-year reporting period ended 31 December 2020, has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This general purpose interim financial report, for the half-year reporting period ended 31 December 2020, is unaudited.

 

 

-ENDS-

 

 

 

 

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