Source - LSE Regulatory
RNS Number : 7402S
Enteq Technologies PLC
18 November 2021
 

Enteq Technologies plc

 

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

 

 

 

Interim results for the six months ended 30 September 2021

and

IMC Investor Presentation

 

 

Enteq Technologies plc (AIM: NTQ.L) the energy services technology and equipment supplier, today announces its interim results for the six months ended 30 September 2021.

Key Highlights

·   SABER rotary steerable system progressed into the field trial phase in a live drilling environment. Field trial results in October demonstrated the ability of the SABER control system to function downhole in-line with the test criteria. The SABER system has proven successful in reaching the development programme milestones and validating all expectations to date.

 

·   North American market has strengthened, with rental and sales revenues coming from new and existing customers. Post period end an order valued at US$1.4m was received.

 

·   Despite China stagnation (6 months to 30 September 2021: US$0.1m; 6 months to 30 September 2020 US$1.8m) and a lag in international market recovery due to ongoing COVID related restrictions, equipment was delivered to new customers in two new geographies.

 

·   Reduction in current underlying overheads of 25% compared to the same time last year, continued focus on cost and cash management.

 

·   Investment made in SABER of US$1.0m leaving a cash balance of US$5.3m at 30 September 2021 (March 2021: US$8.1m). The cash balance as at 17 November 2021 being US$6.3m.

 

 

Financial metrics       

 

Six months ended 30 September:

 

2021

2020

 

 

US$m

US$m

 

·   Revenue

2.3

2.6

 

·   Adjusted EBITDA*    

(0.6)

0.1

 

·   Post tax loss for the period  

1.2

0.7

 

·   Loss per share (cents)

1.8

1.1

 

·   Cash balance           

5.3

8.8

 

 

 

 

 

 

Outlook

·   SABER progressing to North American field-trials in early 2022, where there is strong customer and partner interest and good market potential. Expected successful development of SABER will greatly expand Enteq's addressable market.  Opening of UK technology and manufacturing centre to support SABER's growth and expansion. 

 

·   Further recovery of the North American market anticipated based on current oil price and ongoing increase in rig count.

 

·   International activity, which typically lags North America, expected to start increasing. 

 

·   Two exclusive distribution agreements with third-party technology providers have been recently signed. These will enhance and complement Enteq's current product range. 

 

·   Revenues for financial year to date (1 April to 31 October) of US$3.2m, and current order book of US$2.0m, provides confidence in the Board's expectations for the full year.

 

 

Andrew Law, CEO of Enteq Technologies plc, commented:

 

"Enteq's game-changing SABER has the potential to significantly increase Enteq's addressable market. The system has performed beyond expectations during the initial field trial phase and system testing.  Enteq is well-placed to take SABER through to commercialisation.

 

It has been encouraging to see the North American market recover during this first half of the financial year, with Enteq's customers already starting to increase capacity. The international market has seen a slower response to the oil price relating to COVID, which is to be expected. Despite this challenging international market, sales were made to new customers in two new markets.

 

Key team members have been added to the core MWD business and to the SABER team to provide renewed focus on each business unit.

 

The combination of improving market conditions, a strengthened team and progress of SABER continues to give the Board grounds for optimism regarding the short, medium and long-term outlook for Enteq."

 

 

 

 

Investor Presentation

Please note that Andrew Law and David Steel, Chief Financial Officer, will be providing a live presentation relating to these results via the Investor Meet Company platform on 26 November 2021 at 10:30am GMT.

 

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9.00am the day before the meeting or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and attend this presentation via https://www.investormeetcompany.com/enteq-upstream-plc/register-investor. Investors who already follow Enteq on the Investor Meet Company platform will automatically be invited.

 

 

 

 

 

For further information, please contact:

 

Enteq Technologies plc                                             +44 (0)1494 618739

www.enteq.com

Andrew Law, Chief Executive Officer

David Steel, Chief Financial Officer

 

 

finnCap Ltd (NOMAD and Broker)                              +44 (0)20 7220 0500

Ed Frisby, Emily Watts, Tim Harper (Corporate Finance)

Andrew Burdis, Barney Hayward (ECM)

 

 

 

 

*Adjusted EBITDA is reported profit before tax adjusted for interest, depreciation, amortisation, foreign exchange movements, performance share plan charges and exceptional items - see note 5
 

Interim Report

CHAIRMAN & CHIEF EXECUTIVE OFFICER'S REPORT

Overview

Enteq supplies and develops drilling and measurement technology for the worldwide oil, gas and geothermal directional drilling markets. Enteq provides equipment through rental or purchase, enabling independent and regional directional drilling companies to operate as an alternative to major integrated service companies.  Directional drilling encompasses Measurement While Drilling ("MWD") and Rotary Steerable Systems (RSS).  

 

Enteq continues to focus the existing MWD business on the development, manufacture and supply of equipment.  MWD equipment is required on every rig which drills directional wells and over many years Enteq has established market share based on reputation for reliability both in North America, where operations using Enteq equipment are regularly being carried out on a significant number of rigs, and in addition in key international areas.

 

As a step change to the MWD business, Enteq is commercialising the SABER (Steer At-Bit Enteq Rotary) RSS Tool, a disruptive alternative to traditional directional drilling, which gives Enteq access to a significantly larger addressable market.  The SABER Tool, launched in March this year, is an evolution of the intellectual property developed, proven in concept and tested by Shell.  Enteq has the exclusive worldwide licence to the intellectual property and is now progressing through the field trial programme.

 

Technology Update

Development of the SABER system has progressed well, having completed initial system testing before proceeding into the field trial phase in a live operating location. The SABER system, based on Shell's initial working prototype, has been completely re-engineered to increase the operating range, performance and reliability. Testing has successfully demonstrated the ability of the SABER control system to correctly function in downhole conditions. The ongoing field trial phase consists of a systematic testing programme, with the SABER system being operated downhole in a live well environment. 

 

The next phase, expected to be in early 2022, is to advance into field testing in North America, where there continues to be strong interest in SABER from Enteq's customer base.

 

Financial performance

The half year revenue of US$2.3m has been driven primarily by the steady increase in North American drilling activity. The North American market recovery has been a function of the steady increase in the price of a barrel of WTI; rising from approximately US$61 on 1 April to the current level of around US$80.  The North American active drilling rig count has risen by almost 25%; from 430 on 1 April to 528 at the end of September whereas the international markets have been slower to respond. North American drilling activity typically responds quicker than international markets however this response is more pronounced than usual, with the international markets being much slower to respond, most likely relating to the impact from COVID. 

 

Even though the international market has been challenging, there have been significant sales for two new customers in two new countries. The proportion of international revenue was 28% in this reporting period compared to 50% in the six months to 31 March 2021.   

 

The reported gross margin is 37% in the first half of this year compared with the 60% reported in the equivalent period to 30 September 2020 and the 46% seen in the six months to 31 March 2021.  This is due to a lower proportion of sales coming from the high margin rental revenue stream (from 33% to 23%) combined with a higher proportion coming from the lower margin mechanical component product line (up from 6% to 16%).

 

In the six months ended 30 September 2021, administrative expenses before amortisation, depreciation and long-term incentive scheme charges were US$1.4m, down from the US$1.5m in the six months to September 2020, and up from the US$1.2m in the six months to 31 March 2021. The current run rate of underlying group overheads represents a 25% reduction on the US$1.5m seen in this reporting period last year (a 22% reduction on the overheads in this reporting period).

 

The adjusted EBITDA loss in the period was US$0.6m down from a profit of US$0.1m in the equivalent period last year and a breakeven position in the 6 months to 31 March 2021. The primary reason for the negative movement was the reduced gross margin on similar levels of revenue. A reconciliation between the reported loss and the adjusted EBITDA loss is shown in note 5 to the Financial Statements below.

 

Cash balance and cashflow

As at 30 September 2021 the Group had a cash balance of US$5.3m, down US$2.8m over the figure as at 31 March 2021. 

The half year cash movement can be analysed as follows:

 

US$m

Adjusted EBITDA loss

(0.6)

Change in trade and other receivables

(0.1)

Change in trade and other payables

-

Change in inventory

-

Operational cashflow

 (0.7)

Increase in the rental fleet

 (1.1)

R&D expenditure

 (1.0)

Net cash movement

(2.8)

Cash balances as at 1 April 2021

8.1

Cash balances as at 30 September 2021

5.3

 

Management expects that the future cash balances are sufficient to complete SABER's field testing phase and to bring it to a successful commercial launch.

 

The increase in the rental fleet relates to six new kits being out on rental in North America, including two kits with a new customer.

 

The R&D expenditure was primarily relating to the SABER Rotary Steerable System development program. 

 

 

Operations

As SABER has reached the development milestones set to date, Enteq is in the process of opening a technology and manufacturing centre.  SABER systems will be built at this facility, as well as supporting the sustaining engineering function.   The facility will be located close to Cheltenham, UK, one of the global centres of expertise for Rotary Steerable Systems with access to specialised engineering and machining firms. 

The core engineering, manufacturing and distribution functions continue to operate from the Enteq owned facility in Houston, Texas. 

 

Organisation

The sales function was reinforced with the addition of a VP Business Development in May 2021.  This addition has strengthened customer engagement in North America and internationally, already resulting in revenues from new and existing customers.

The two recently announced distribution agreements with Erdos Miller and Mezintel add complementary product functionality to both SABER (Steer At-Bit Enteq Rotary) and MWD (Measurement While Drilling) product lines.  

Effective 1 November 2021 a Reliability Engineer has been hired to underpin the SABER project.  Reliability is a critical factor for the successful introduction of technologies such as SABER to customers. 

 

 

Board

From 1 April 2021 Andrew Law became the Chief Executive Officer (CEO) with Martin Perry, the previous CEO, becoming the Non-executive Chairman.  From the same date Neil Hartley assumed the role of Senior Independent Director and Iain Paterson, the previous Chairman, became a Non-executive Director.  David Steel continues to serve on the Board with the new title of Chief Financial Officer.

 

Outlook

With SABER progressing well through field trials and the MWD product range enhanced by the exclusive distribution agreements, Enteq is well positioned to benefit from the ongoing market recovery.  This provides confidence in the Board's expectations for the full year.

 

 

Andrew Law                                                    Martin Perry

Chief Executive                                              Chairman

Enteq Technologies plc

17 November 2021

 

 

Enteq Technologies plc

 

 

 

 

Condensed Consolidated Income Statement

 

 

 

 

 

 

 

 

 

 

 

Six months to 30 September 2021

Six months to 30 September 2020

Year to

31 March 2021

 

 

Unaudited

Unaudited

Audited

 

Notes

US$ 000's

US$ 000's

US$ 000's

 

 

 

 

 

Revenue

 

2,318

2,596

5,078

 

 

 

 

 

Cost of Sales

 

(1,457)

(1,029)

(2,367)

 

 

 

 

 

Gross Profit

 

861

1,567

2,711

 

 

 

 

 

Administrative expenses before amortisation

 

(1,877)

(1,998)

(3,851)

Bad debt provision charge to income statement

 

-

-

(56)

Amortisation of acquired intangibles

10

(170)

-

(19)

Other exceptional items

6

(16)

(420)

(85)

Foreign exchange (loss)/gain on operating activities

 

(10)

46

78

 

 

 

 

 

Total Administrative expenses

 

(2,073)

(2,372)

(3,933)

 

 

 

 

 

Operating loss

 

(1,212)

(805)

(1,222)

 

 

 

 

 

Finance income

 

7

46

67

 

 

 

 

 

Loss before tax

 

(1,205)

(759)

(1,155)

 

 

 

 

 

Tax expense

9

-

29

46

 

 

 

 

 

Loss for the period

5

(1,205)

(730)

(1,109)

 

 

 

 

 

Loss attributable to:

 

 

 

 

Owners of the parent

 

(1,205)

(730)

(1,109)

 

 

 

 

 

Earnings/loss per share (in US cents):

8

 

 

 

Basic

 

(1.8)

(1.1)

(1.7)

Diluted

 

(1.8)

(1.1)

(1.7)

 

 

 

 

 

           

 

Condensed Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

Six months to 30 September 2021

Six months to 30 September 2020

Year to 31 March 2021

 

 

Unaudited

Unaudited

Audited

 

 

US$ 000's

US$ 000's

US$ 000's

 

 

 

 

 

Loss for the period

 

(1,205)

(730)

(1,109)

Other comprehensive income for the period:

 

 

 

 

Items that will not be reclassified subsequently to profit or loss

 

-

-

-

Items that will be reclassified subsequently to profit or loss

 

-

-

-

Total comprehensive income for the period

 

(1,205)

(730)

(1,109)

Total comprehensive income attributable to:

 

 

 

 

Owners of the parent

 

(1,205)

(730)

(1,109)

               
 

 

 

Enteq Technologies plc

 

 

 

 

Condensed Statement of Financial Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 September 2021

30 September 2020

31 March 2021

 

 

Unaudited

Unaudited

Audited

 

Notes

US$ 000's

US$ 000's

US$ 000's

Non-current assets

 

 

 

 

Intangible assets

10

2,517

665

1,728

Property, plant and equipment

 

2,201

2,394

2,264

Rental fleet

 

851

854

8

Trade and other receivables greater than one year

 

66

-

168

Non-current assets

 

5,635

3,913

4,168

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

2,649

1,617

2,405

Inventories

 

2,856

2,790

2,888

Cash and cash equivalents

 

5,335

8,827

8,059

Current assets

 

10,840

13,234

13,352

Total assets

 

16,475

17,147

17,520

 

 

 

 

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

Share capital

11

1,070

1,051

1,056

Share premium

 

91,884

91,724

91,789

Share based payment reserve

 

315

751

455

Retained earnings

 

(78,312)

(77,673)

(77,324)

Total equity

 

14,957

15,853

15,976

 

 

 

 

 

Current Liabilities

 

 

 

 

Trade and other payables

 

1,518

1,294

1,544

Total equity and liabilities

 

16,475

17,147

17,520

 

 

 

 

Enteq Technologies plc

 

 

 

 

 

Condensed Consolidated Statement of Changes in Equity

 

 

 

 

Six months to 30 September 2021

 

 

 

 

 

 

Share

 

 

Called up

Profit

 

based

 

 

share

and loss

Share

payment

Total

 

capital

account

premium

reserve

Equity

 

US$ 000's

US$ 000's

US$ 000's

US$ 000's

US$ 000's

 

 

 

 

 

 

Issue of share capital

14

-

95

-

109

Transfer between reserves

-

217

-

(217)

-

Share based payment charge

-

-

-

77

77

Transactions with owners

14

217

95

(140)

186

 

 

 

 

 

 

Loss for the period

-

(1,205)

-

-

(1,205)

 

 

 

 

 

Total comprehensive income

-

(1,205)

-

-

(1,205)

 

 

 

 

 

 

Movement in period:

14

(988)

95

(140)

(1,019)

1,056

(77,324)

91,789

455

15,976

As at 30 September 2021 (unaudited)

1,070

(78,312)

91,884

315

14,957

 

 

 

 

Six months to 30 September 2020

 

 

 

 

 

 

Share

 

 

Called up

Profit

 

based

 

 

share

and loss

Share

payment

Total

 

capital

account

premium

reserve

equity

 

US$ 000's

US$ 000's

US$ 000's

US$ 000's

US$ 000's

 

 

 

 

 

 

Issue of share capital

22

-

181

-

203

Share based payment charge

-

-

-

117

117

Transactions with owners

22

-

181

117

320

 

 

 

 

 

 

Loss for the period

-

(457)

-

-

(457)

 

 

 

 

 

Total comprehensive income

-

(457)

-

-

(457)

 

 

 

 

 

 

Movement in period:

22

(457)

181

117

(137)

1,005

(69,105)

91,398

750

24,048

As at 30 September 2020 (unaudited)

1,027

(69,562)

91,579

867

23,911

 

 

 

 

Enteq Technologies plc

 

 

Condensed Consolidated Statement of Cash flows

 

 

 

 

 

 

 

 

 

Six months to

30 September 2021

Six months to

30 September 2020

Year to

31 March 2021

 

Unaudited

Unaudited

Audited

 

US$ 000's

US$ 000's

US$ 000's

Cash flows from operating activities:

 

 

 

Loss for the period

(1,205)

(730)

(1,109)

Tax credit

-

(29)

-

Gain on disposal of fixed assets

(20)

-

(455)

Net finance income

(7)

(46)

(67)

Share-based payment non-cash charges

75

(297)

135

Impact of foreign exchange movement

(10)

(46)

78

Depreciation, amortisation and exceptional charges

525

820

1,130

 

(642)

(328)

(288)

 

 

 

 

Tax received

 

 

46

(Increase)/decrease in inventory

34

321

222

Decrease/(increase) in trade and other receivables

(143)

409

(554)

(Decrease)/increase in trade and other payables

(26)

(851)

(820)

Increase in rental fleet assets

(1,128)

(618)

(17)

Net cash from operating activities

(1,905)

(1,067)

(1,411)

 

 

 

 

 

 

 

 

Investing activities

 

 

 

Purchase of tangible fixed assets

(6)

(18)

(29)

Disposal proceeds of tangible fixed assets

20

-

511

Purchase of intangible fixed assets

(959)

(531)

(1,423)

Interest received

7

46

67

Net cash from investing activities

(938)

(503)

(874)

 

 

 

 

 

 

 

 

Financing activities

 

 

 

Share issue

109

168

239

Net cash from financing activities

109

168

239

 

 

 

 

 

 

 

 

 

 

 

 

Increase/(decrease) in cash and cash equivalents

(2,734)

(1,402)

(2,046)

 

 

 

 

Non-cash movements - foreign exchange

10

46

(78)

Cash and cash equivalents at beginning of period

8,059

10,183

10,183

 

 

 

 

Cash and cash equivalents at end of period

5,336

8,827

8,059

 

 

 

 

           
 

 

ENTEQ TECHNOLOGIES PLC

 

NOTES TO THE FINANCIAL STATEMENTS

For the six months to 30 September 2021

 

 

1.    Reporting entity

 

On 18 October 2021, Enteq Upstream plc ("the Company") changed its name to Enteq Technologies plc. The Company is a public limited company incorporated and domiciled in England and Wales (registration number 07590845).  The Company's registered address is The Courtyard, High Street, Ascot, Berkshire, SL5 7HP.

 

The Company's ordinary shares are traded on the AIM market of The London Stock Exchange. 

 

Both the Company and its subsidiaries (together referred to as the "Group") provides equipment to energy service companies for use in the hydrocarbon and geothermal extraction sectors.

 

2.    General information and basis of preparation

 

The information for the period ended 30 September 2021 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the period ended 31 March 2021 has been delivered to the Registrar of Companies. The auditors have reported on these accounts; their reports were unqualified, but did draw attention to the uncertainty regarding the carrying value of the inventory by way of emphasis without qualifying their report and did not contain statements under s498(2) or (3) Companies Act 2006.

 

The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting', as adopted by the European Union.

 

The Group's consolidated interim financial statements are presented in US Dollars (US$), which is also the functional currency of the parent company. These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of directors on 17 November 2021.

 

This half-yearly financial report has not been audited and has not been formally reviewed by auditors under the Auditing Practices Board guidance in ISRE 2410.

 

 

3.    Accounting policies

 

The interim financial statements have been prepared on the basis of the accounting policies and methods of computation applicable for the period ended 31 March 2021. These accounting policies are consistent with those applied in the preparation of the accounts for the period ended 31 March 2021.

 

 

4.      Estimates

 

When preparing the interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results. The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last annual financial statements for the year ended 31 March 2021.

 

 

 

 

 

5.    Adjusted earnings and adjusted EBITDA

The following analysis illustrates the performance of the Group's activities, and reconciles the Group's loss, as shown in the condensed consolidated interim income statement, to adjusted earnings. Adjusted earnings are presented to provide a better indication of overall financial performance and to reflect how the business is managed and measured on a day-today basis. Adjusted earnings before interest, taxation, depreciation and amortisation ("adjusted EBITDA") is also presented as it is a key performance indicator used by management.

 

 

Six months to 30 September 2021

Six months to 30 September 2020

Year to 31 March 2021

 

US$ 000's

US$ 000's

US$ 000's

 

Unaudited

Unaudited

Audited

 

 

 

 

Loss attributable to ordinary shareholders

(1,205)

(730)

(1,109)

Exceptional items

16

420

85

Amortisation of acquired intangible assets

170

-

18

Foreign exchange movements

10

(46)

(78)

Adjusted earnings

(1,009)

(356)

(1,084)

 

 

 

 

Depreciation charge

355

820

1,111

Finance income

(7)

(46)

(67)

PSP credit/(charge)

100

(302)

165

Tax credit

-

(29)

(46)

Adjusted EBITDA

(561)

87

79

 

 

 

 

 

6.   Exceptional items

The exceptional items can be analysed as follows:

 

Six months to 30 September 2021

Six months to 30 September 2020

Year to 31 March 2021

 

US$ 000's

US$ 000's

US$ 000's

 

Unaudited

Unaudited

Audited

 

 

 

 

Severance payments

38

363

397

Aborted project costs incurred

-

57

147

Gain on sale of fixed assets

(20)

-

(455)

Other

(2)

-

(4)

Exceptional items

16

420

85

 

 

7.    Segmental Reporting

 

For management purposes, the Group is currently organised into a single business unit, the Drilling Division, which is based, operationally, solely in the USA.

 

The principal activities of the Drilling Division are the design, manufacture and selling of specialised products and technologies for Directional Drilling and Measurement While Drilling operations used in the energy exploration and services sector of the oil and gas industry.

 

 

 

At present, there is only one operating segment and the information presented to the Board is consistent with the consolidated income statement and the consolidated statement of financial position.

 

The net assets of the Group by geographic location (post-consolidation adjustments) are as follows:

 

 

 

Net Assets

30 September 2021

30 September 2020

31 March 2021

US$ 000's

US$ 000's

US$ 000's

Unaudited

Unaudited

Audited

 

 

 

4,512

7,768

6,674

10,443

8,085

9,302

14,955

15,853

15,976

 

 

The net assets in Europe (UK) are represented, primarily, by cash balances denominated in US$.

 

 

8.    Earnings Per Share

 

Basic earnings per share

Basic earnings per share is calculated by dividing the loss attributable to ordinary shareholders for the six months of US$1,205,000 (September 2020: loss of US$730,400) by the weighted average number of ordinary shares in issue during the period of 68,415,563 (September 2020: 66,452,000).

 

 

 

 

9.    Income Tax

 

No tax liability arose on ordinary activities for the six months under review.  The 2020 tax credit of US$29,000 relates to the receipt of UK R&D tax reclaimed.

 

 

10.  Intangible Fixed Assets

Other Intangible Fixed Assets

 

Developed technology

IPR&D technology

Brand names

Customer relationships

 

Total

 

US$ 000's

US$ 000's

US$ 000's

US$ 000's

US$ 000's

Cost:

 

 

 

 

 

As at 1 April 2021

12,842

13,048

1,240

20,586

47,716

Capitalised in period

-

959

-

-

959

As at 30 September 2021

12,842

14,007

1,240

20,586

48,675

 

 

 

 

 

 

Amortisation:

 

 

 

 

 

As at 1 April 2021

12,842

11,320

1,240

20,586

45,988

Charge for the period

-

170

-

-

170

As at 30 September 2021

12,842

11,490

1,240

20,586

46,158

 

 

 

 

 

 

Net Book Value:

 

 

 

 

 

As at 1 April 2021

-

1,728

-

-

1,728

As at 30 September 2021

-

2,517

-

-

2,517

 

The main categories of Intangible Fixed Assets are as follows:

Developed technology:

This is technology which is currently commercialised and embedded within the current product offering.

IPR&D technology:

This is technology, which is in the final stages of field testing, has demonstrable commercial value and is expected to be launched in the foreseeable future.

Brand names:

The value associated with various trading names used within the Group.

Customer relationships:

The value associated with the on-going trading relationships with the key customers acquired.

 

 

 

 

11.  Share capital

 

Share capital as at 30 September 2021 amounted to US$1,070,000 (31 March 2021: US$1,056,000 and 30 September 2020: US$1,051,000).

 

 

12.  Going concern

 

The Directors have carried out a review of the Group's financial position and cash flow forecasts for the next 12 months by way of a review of whether the Group satisfies the going concern tests. These have been based on a comprehensive review of revenue, expenditure and cash flows, taking into account specific business risks and the current economic environment. With regards to the Group's financial position, it had cash and cash equivalents at 30 September 2021 of US$5.3 million.

 

Having taken the above into consideration the Directors have reached a conclusion that the Group is well placed to manage its business risks in the current economic environment. Accordingly, they continue to adopt the going concern basis in preparing the Interim Condensed Financial Statements.

 

13.  Principal risks and uncertainties

 

Further detail concerning the principal risks affecting the business activities of the Group is detailed on pages 12 o 14 of the Annual Report and Accounts for the period ended 31 March 2021.  Consideration has been given to whether there have been any changes to the risks and uncertainties previously reported.  None have been identified.

 

 

 

14.  Events after the balance sheet date

 

There have been no material events subsequent to the end of the interim reporting period ended 30 September 2021.

 

 

 

15.  Copies of the interim results

 

Copies of the interim results are available from the Group's website at www.enteq.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 rns@lseg.com or visit www.rns.com.

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