Cleantech Building Materials: Unaudited Interim Results to 30 June 2023
29 September 2023
CLEANTECH BUILDING MATERIALS PLC, NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
TICKER: CBM
Cleantech Building Materials plc
Unaudited Interim Results to 30 June 2023
Cleantech Building Materials plc (“CBM” or the “Company” or the “Group”), presents its unaudited results for the six months ended 30 June 2023. The financial statements are appended to this announcement and may also be found at the Company’s website www.cbm-plc.com
Strategy and Objectives
The Group’s primary strategic objectives for 2023 are:
1. To advance the engineering, procurement and construction of an Accoya® Wood manufacturing facility in China;
2. To build relationships with large-volume wood product manufacturers through testing and trials in anticipation of Accoya® Wood being produced in the Group’s own factory;
3. To develop the Group’s international marketing and sales initiatives to further expand market channels and offtake agreements; and
4. To develop the Group’s relationships with key suppliers of Radiata Pine and Acetic Anhydride.
The Group has made progress towards achieving these objectives during the six months ended 30 June 2023.
Financial Review of the Business
The Group’s revenues for the six months ended 30 June 2023 amounted to € Nil (six months ended 30 June 2022: €Nil). This is due to the transfer of the commercial activities to the joint venture in Nantong, China from August 2021.
The Group realised a net loss of €2,279,000 for the six months ended 30 June 2023 (six months ended 30 June 2022: €2,412,000). The net loss for the current period was mainly due to salaries, share option costs and third party legal, financial and engineering professional costs. Strict cost control has limited the extent of the loss.
As of 30 June 2023, the Group had cash and cash equivalents of €59,000 (30 June 2022: €464,000) as well as an available facility of approximately €3.34m, and an equity commitment to finance the Chinese joint venture. The Company has net current liabilities of €1,249,000 (30 June 2022: €177,000).
The Group’s current business plan is the importing and marketing of Accoya® Wood, through its joint venture in Nantong. The Group has sufficient financing available to operate this existing import business on a going concern basis. The Group’s Directors are of a view that an opportunity exists for the Group to build and operate its own Accoya® factory in China.
In order to fund its operations and the construction of the new factory, the Group has a loan facility available from a third party, the financing commitments by Nantong Acetic Acid Chemical Company Limited and a leading Chinese bank, and the 30 December 2022 subscription agreement for €25.5m. However, the provision of the funds is inherently uncertain, as they are conditional on the achievement of project milestones related to the construction of the Accoya® Wood factory in China. These milestones include certain government approvals and project execution deliverables. Several key milestones have already been achieved, and the Company has received equity funds in relation to these milestones. In summary, the validity and success of our business plan is dependent on many factors, some outside of the direct control of the Group’s management.
Despite these uncertainties, the Directors are confident that the Group has sufficient financing in place to build an Accoya® Wood factory and to execute the Group’s business plan and to fully realise the carrying amount of the non-current assets.
Once the Group is producing its own Accoya® Wood, the CBM Board believes the financial performance of the Group will be radically transformed.
Business Update
Following the application made by the Company on 8 September 2023 to terminate the listing of the Company's shares on Nasdaq First North Growth Market Denmark, the application has been approved by Nasdaq Copenhagen A/S, and the 10-week trading period started on 13 September 2023 and the last day of trading will be 22 November 2023.
The interim financial information for the six months ended 30 June 2023, was approved by the Board for release on 29 September 2023.
THE DIRECTORS OF CLEANTECH BUILDING MATERIALS PLC ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
Further information may be found at the Company's website at www.cbm-plc.com
Further Enquiries:
| Cleantech Building Materials plc Adrian Wyn-Griffiths | info@cbm-plc.com +44 20 3934 6630 |
| Keswick Global AG (Certified Adviser) | info@keswickglobal.com +43 1 740 408045 |
| IFC Advisory Limited (Financial PR) Tim Metcalfe Zach Cohen | +44 20 3934 6630 |
The information communicated in this announcement is disclosed in compliance with the Nasdaq First North Growth Market Rulebook.
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