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Unaudited Interim Results

OTAQ Plc (OTAQ)
Unaudited Interim Results

30-Sep-2024 / 07:00 GMT/BST


30 September 2024

OTAQ plc

("OTAQ", the "Company" or the “Group”)

 

Unaudited Interim Results

 

OTAQ, the innovative technology company targeting the aquaculture and offshore markets, is pleased to announce unaudited interim results for the six months ended 30 June 2024.

 

Financial Highlights:

 

 

H1 2024

(unaudited)

£’000

H1 2023

(unaudited)

£’000

FY 2023

(audited)

£’000

Revenue

1,510

1,801

4,407

Gross profit*

890

883

2,197

Adjusted EBITDA**

(422)

(347)

(311)

 

*Depreciation on rental units moved to overhead in 2024

**Adjusted EBITDA means earnings before income, tax, depreciation, exceptional costs, impairment, share option charges and amortisation

 

Highlights:

  • Live Plankton Analysis now commercially launched, and first customer contract signed.
  • Sale of 19 Sealfence units to a new customer.
  • Development of new overseas markets for Offshore products beginning to provide results.
  • Increased shareholding in Minnowtech in exchange for £0.2m of BRS-1 product development services.

 

Post-Period Highlights:

  • Successful fundraise of £1.79m of Convertible Loan Notes, with an additional £1m broker option available until 31/12/24.
  • Repayment in full of the £0.8m outstanding Cbils loan.
  • Shipping of £350k connector order in July to a key client.
  • Minnowtech BRS-1 won the ‘Product most likely to change shrimp production’ at the Global Shrimp Forum in Utrecht in September 2024.
  • Cost reduction exercise implemented to provide annualised cost savings greater than £500k, with over £150k expected to impact in 2024.

 

Commenting on the results and prospects, Phil Newby, Chief Executive at OTAQ, said:

 

“We continue to push into new markets both for our existing product range and for the newly developed products such as LPAS and Minnowtech, in both our connectors and aquaculture businesses.

 

"The identified cost savings will allow the Group to focus on delivering against our key strategic goals, providing the funds to concentrate sales and marketing efforts to maximise the commercial impact of our newly completed developments”

 

 

Enquiries

 

OTAQ PLC

+44 (0) 1524 748028

Adam Reynolds, Non-Executive Chairman

 

Phil Newby, Chief Executive Officer

Justine Dowds, Chief Financial Officer

 

 

 

Dowgate Capital Limited - AQSE Corporate Advisor & Broker

+44 (0)20 3903 7715

David Poutney / James Serjeant

Nicholas Chambers / Russell Cook

 

 

 

Walbrook PR Limited – PR

+44 (0)20 7933 8780

07971221972 or 07748325236

Tom Cooper / Nick Rome

OTAQ@walbrookpr.com

    

 

About OTAQ

 

OTAQ is a highly innovative technology company targeting the aquaculture and offshore markets. It already has a number of established products in its portfolio and is focused on further developing its presence, customer base and cross selling opportunities within core markets both organically and via acquisition.

 

OTAQ’s aquaculture products, which include a sonar device (developed for Minnowtech LLC) to scan shrimp in ponds and water quality monitoring, are focused on maximising welfare and production yields. Additionally, the Company is developing a potentially game changing live plankton analysis product for finfish and shellfish farmers. It also continues to target opportunities in the acoustic deterrent devices market via its Sealfence product, which is used by salmon farmers, with global opportunities in Chile, Australia, Canada and Norway.

 

OTAQ’s offshore product range includes OceanSense subsea leak detection, Eagle IP camera systems, Lander seabed survey devices and Subsea electrical connectors and penetrators. It is targeting a number of growth opportunities in new territories and has a strong client base including Expro, Amphenol and National Oilwell Varco. The Company is also focused on the development of new products through this division, with the aim of increased cross-deployment of skills and technologies into the aquaculture arena.

 

The Company is also developing high accuracy location trackers for specialist applications. Having already added clients within safety and multiple participant sport/racing applications, the Company is investigating wider market potential - including opportunities in the seafood industry.

 

 

 

 

 

Summary

 

The Group presents its unaudited interim results for the six-month period ended 30 June 2024.

 

Trading

Revenue has been adversely impacted in the period by the delayed delivery of a key Offshore product from a supplier pushing a significant sale into July, which has resulted in revenue in the first half of £1.5m (H1 2023: £1.8m).

 

The Offshore division achieved revenues of £1.1m (H1 2023 £1.45m) and the Aquaculture division achieved £0.4m (H1 2023: £0.3m).

 

The Company has reported an Adjusted EBITDA loss of £422k (H1 2023 loss £347k).

 

Offshore

The Offshore division, as expected, has continued to build on the strong performance reported in 2023. The underwater connectors have performed well, only missing the H1 forecast due to the delayed delivery of a key product from a supplier pushing a significant sale into July.

 

Opportunities for Oceansense rentals have been reduced in H1 due to lower offshore maintenance activity, however we are encouraged by the progress shown in the newly developing overseas markets.

 

Aquaculture

The Company’s sonar shrimp system developed for Minnowtech LLC, is now gaining traction in its target markets, and has recently won the ‘Product most likely to change shrimp production’ at the Global Shrimp Forum in Utrecht. Disappointingly however, orders have yet to be placed this year by Minnowtech.

 

The Company has identified further new customer interest in the Company’s established Sealfence solution from salmon farmers in several major salmon production regions, having sold 19 Sealfence units into these core target markets in H124.

 

The Company also confirms that, following more than three years in development, OTAQ has now completed successful trials of its Live Plankton Analysis System (LPAS), and recently launched LPAS at the Aquaculture UK conference. The first customer contract has been signed, and progress with potential users in the southern hemisphere is encouraging.

 

 
 

Financial Highlights for the six months ended 30 June 2024

 

H1 2024)

£’000

H1 2023

£’000

FY 2023

£’000

Revenue

1,510

1,801

4,407

Gross profit*

890

883

2,197

Adjusted EBITDA**

(422)

(347)

(311)

 

*Depreciation on rental units moved to overhead in 2024

**Adjusted EBITDA means earnings before income, tax, depreciation, exceptional costs, impairment, share option charges and amortisation

 

 

H1 2024

 

£’000

H1 2023

 

£’000

Operating loss

(805)

(709)

Amortisation of intangible assets

143

134

Depreciation of right-of-use assets

70

84

Depreciation on property, plant and equipment

170

144

Adjusted EBITDA

(422)

(347)


 

Adjusted EBITDA was a loss of £0.42m from a loss of £0.35m in 2023, the reduction being due to the slippage of a key sale into July 24.  

 

Net debt as at 30 June was £0.77m (2023: £0.51m) with cash balances of £0.18m, which was prior to the receipt of the proceeds from the successful CULS placing in July 2024.

 

Outlook

 

The Offshore Division continues to benefit from strengthening market demand for underwater connectors and penetrators.

 

Whilst the timing of new client orders can be difficult to predict, we anticipate significant further orders for shrimp sonar devices, together with further sales of the Sealfence, in the current financial year. 

 

Phil Newby

Chief Executive Officer

 

The Board confirms that to the best of its knowledge the unaudited consolidated half year financial statements for the six months to 30 June 2024 have been prepared in accordance with IAS 34 Interim Financial Reporting amended in accordance with changes in IAS 1 Presentation of Financial Statements, as adopted by the UK 

 

 

 

Unaudited Condensed Consolidated Statement of Comprehensive Income

 

 

Half-year ended

 

Notes

 

30 June 2024

30 June 2023

 

 

£000

£000

Revenue

1

1,510

1,801

Cost of sales

 

(621)

(918)

Gross profit

1

889

883

Administrative expenses

 

(1,695)

(1,592)

Operating loss

 

(806)

(709)

Finance expense

 

(64)

(64)

Exceptional items

2

(14)

-

Loss on ordinary activities before taxation

 

(884)

(773)

Taxation

 

 

14

Loss for the period

 

(884)

(759)

Other comprehensive loss

 

-

-

Total Comprehensive Loss

 

(884)

(759)

 

Attributable to:

 

 

 

The Group

 

(884)

(759)

 

 

 

 

As per note 3, Basic and Diluted Losses Per Share were 0.7p (2023: 0.6p).

The loss for the period arises from the Group’s continuing operations and is attributable to the equity holders of the parent.

There were no other items of comprehensive income for the period (2023: £nil) and therefore the loss for the period is also the total comprehensive loss for the period.

The notes form an integral part of these condensed financial statements.

 
 

Unaudited Condensed Consolidated Balance Sheet

 

Notes

As at
30 June

2024

As at
31 December 2023

As at
30 June

 2023

 

 

£000

£000

£000

Assets

 

 

 

 

Non–current assets

 

 

 

 

Plant and equipment

 

522

633

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