REG - Aurrigo Int PLC - Full Year Results and Notice of AGM
30/05/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240530:nRSd3623Qa&default-theme=true
RNS Number : 3623Q Aurrigo International PLC 30 May 2024
30 May 2024
Aurrigo International plc
Full year results for year ended 31 December 2023
and
Notice of Annual General Meeting
Continued good progress since IPO - foundations laid for future growth
Aurrigo International plc (AIM: AURR, the "Company" or "Aurrigo"), a leading
international provider of smart airside solutions and automotive products,
reports its full year results for the year ended 31 December 2023.
Highlights
• The Group signed an agreement with International Airlines Group (IAG)
to deploy Auto-Sim®and Auto-DollyTug®for automated baggage handling in the
USA at Cincinnati / Northern Kentucky International Airport (CVG).
• The Group signed an additional agreement with IAG to deploy
Auto-Sim®and Auto-DollyTug®for automated baggage handling at a large UK
Airport.
• The Group announced a multi-year partnership agreement with Changi
Airport Group (CAG) for the continued development of Aurrigo's automated smart
airport solutions and the joint demonstration of these to other airports and
stakeholders.
• The Group announced a collaboration with UPS to develop and deploy a
larger capacity cargo vehicle, Auto-Cargo®, at their East Midlands Airport
hub, the UK's second largest cargo terminal.
• The Group announced a contract with Stuttgart Airport and the Digital
Testbed Cargo Project (DTAC) Consortium to trial Auto-DollyTug®to transport
cargo from the terminal to the deck of the aircraft.
• The Automotive division acquired GB Wiring Systems Limited. The
acquisition delivered an established network of new customers which further
diversified the division's customers base.
• Headcount increased at all levels, expanding the team from 48 at IPO
to 95 at year end.
• The Group won 'Best Newcomer' award at the AIM awards 2023,
highlighting our commitment to investing in reducing our carbon footprint and
engaging in DEI initiatives, including internships and in-house mentoring.
• The Group was awarded an 'A' rating for ESG following an independent
assessment from Integrum ESG.
Outlook
• Partnerships with some of the largest organisations in the aviation
industry continue to drive the development of the Group's smart aviation
solutions.
• The Group is now transitioning from proving out concepts to deploying
and demonstrating the solutions.
• The Group is focused on developing scale in the manufacturing facility
in Coventry (UK) and also investigating locations for additional capacity in
the USA, Europe and Asia.
• 2024 will see our automated smart aviation solutions being used in key
airport hubs around the world which the Board anticipates will translate into
increasing revenue in 2025.
• The Automotive division continues to grow organically in line with
management expectations.
David Keene, CEO of Aurrigo, commented:
"I am very pleased with the significant progress the Group has made throughout
2023. We have accelerated our partnership with Singapore Changi Airport
Group and additionally won new customers internationally."
"Since joining AIM, only 15 months ago, we have scaled our teams, developed an
advanced autonomous baggage handling vehicle from the ground up, deployed our
airport simulation software package, and are now rapidly building a leadership
position in Smart Aviation Solutions."
"A successful secondary fund raise in October has allowed us to lay the
foundations for our future growth in 2024 and beyond."
For further enquires
Aurrigo International plc +44 (0)2476 635818
David Keene, Chief Executive Officer
Ian Grubb, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Sole Broker) +44 (0)20 7496 3000
Phil Davies, Rick Thompson, Alaina Wong, Jalini Kalaravy
Cucumber PR +44 (0)78 1260 0271
Russ Cockburn
About Aurrigo International plc
Aurrigo International plc is a leading international provider of smart airside
solutions and automotive products.
Headquartered in Coventry in the UK, it designs, engineers, manufactures and
supplies automated vehicles to the aviation industry for use in airside
operations.
It is highly regarded as a specialist in automated technology for the
aviation, ground handling and cargo industries.
Aurrigo has developed technology and vehicles which can be utilised to reduce
costs, resolve operational issues, increase safety, tackle labour shortages,
whilst also improving sustainability.
For more information, see www.aurrigo.com (http://www.aurrigo.com/)
CHAIR'S STATEMENT
I am delighted and privileged to present Aurrigo International plc's 2023 full
year results. Let me share some key messages on our progress in what has been
an exciting year of development and technological breakthrough.
The Group's investment in product development and expanding our team to pursue
new market opportunities has resulted in a number of strategic relationships
in key passenger and cargo hubs around the world. We continue to demonstrate a
position of financial growth - delivering revenues in line with expectations
of £6.6m, with a robust balance sheet and a solid cash position. As a quoted
company, we operate with a high level of integrity, transparency, and strong
governance that we know our investors, customers, partners and colleagues
value.
KEY ACHIEVEMENTS
One of several notable achievements of the year was the development and
deployment of the Auto- DollyTug® MK3 overcoming operational and technical
hurdles with innovative engineering and design solutions. We now have a tested
and proven vehicle with advanced functionality, capable of operating in
extreme weather, aligning to airport equipment, and transferring baggage
containers to aircraft on stand. We also completed a fundraise in what were
very challenging market conditions - a real testament to the disruptive
technology, sound business and talented team we have at Aurrigo, combined with
a passion to succeed from the senior leadership team. We continued to build on
a solid platform for growth and the whole team are proud to now be delivering
on the expectations of when we joined AIM in 2022.
With the funding in place, Aurrigo is in a strong position to deliver on our
planned projects and opportunities, particularly in the aviation space,
introducing automated solutions which can improve efficiencies, staffing
shortages and sustainability for airport operations globally.
Building on this, in October 2023, we announced a partnership agreement with
International Airlines Group (IAG) to deploy and demonstrate Aurrigo's smart
aviation solutions within the UK and in the USA at the Cincinnati/Northern
Kentucky International Airport (CVG). We followed this by announcing further
projects with Schiphol Nederland B.V. ("SNBV"), for the deployment and
demonstration at Amsterdam Airport Schiphol, The Netherlands.
FINANCIAL
Following our successful £4.1m fundraise in November 2023, Aurrigo is well
capitalised for its current needs, with a cash balance of £3.5m at period end
and delivering £6.6m of revenues, with an Adjusted EBITDA loss of £3.2m. We
continue to efficiently manage costs whilst also exploring non-dilutive
funding for some projects, particularly grant funding.
OUTLOOK
Aurrigo began 2024 with excellent foundations and a clear strategy for growth,
building on the revenue growth and key partnerships developed in the period.
We are on-track to deliver the key phases of growth outlined at our recent
fundraise and the announcement of the phase 2b contract at Changi Airport
(CAG). The design upgrades in Phase 2a resulted in the Phase 2b period
extending beyond the end of the current financial year and into FY25. The
Board is confident that the Aviation Division should deliver at least £3m of
revenues in FY24, together with a further minimum of £6m from the Automotive
Division. The partnership with CAG has allowed us to showcase our capabilities
to other airport groups and airlines and this has resulted in agreements and
projects underway with some of the industry's largest companies and airports.
The continued recovery of the aviation sector during 2023 has reinforced
industry demand for efficiencies, decarbonisation, and solutions to staff
shortages. This continues to underpin Aurrigo's growth drivers in aviation and
our pipeline of opportunities. The Board therefore believes that we are well
positioned to deliver on future growth ambitions.
Andrew Cornish
Non-Executive Chair
29 May 2024
CEO'S REPORT
2023 was another significant year for Aurrigo. We developed and proved out our
smart aviation technology in airports internationally, established our leading
market position and grew our network of strategic partners. We delivered a
strong operational and financial performance for the year, in line with market
expectations and are proud to be achieving what we set out at the time of the
IPO increasing our headcount, developing our technology, building our Group
profile within the aviation sector and realising the growth potential of our
automated aviation baggage and cargo handling vehicles. Aurrigo has a strong
heritage of automotive expertise, alongside valuable design capabilities. It
has supplied leading vehicle manufacturers and Tier 1 suppliers for 30 years,
including Aston Martin, Bentley, Jaguar, Land Rover, McLaren, and Rolls Royce.
Our consistent delivery of high- quality products has built long-term customer
relationships.
We have created award-winning, industry leading autonomous vehicles by
investing in our proprietary products and software. Aurrigo has developed and
owns all IP relating to our autonomous vehicle technology and we continue to
invest in the research and development of products and software to maintain a
market leading position.
Aviation is a key growth area for Aurrigo's automated vehicle technology. The
global airline industry is seeking to improve its processes, tackle workforce
shortages and reduce the environmental impact of operations, and these trends
will increase demand for smart and sustainable solutions, offering significant
future growth opportunities.
This, coupled with the Group's proprietary airport planning software tool and
autonomous vehicle fleet management system, gives Aurrigo a significant
competitive advantage.
The Group has created award-winning, industry leading automated vehicles by
investing in our smart technology and software. Aurrigo has developed and owns
all IP relating to this smart technology and continues to invest in the
R&D of products and software to maintain a market leading position.
CUSTOMERS AND PARTNERS
Aurrigo's relationship with Changi Airport Group in Singapore has strengthened
with each successful test of the Group's automated vehicles in airside
demonstrations. Post year-end in May 2024, there was a milestone agreement
signed with CAG. The contract paves the way for the future adoption of our
Auto-DollyTug® for the servicing of live flights in the near term. Changi
Airport Group has been exploring this technology with us since 2020 and the
results of significant testing through extreme weather conditions has given
them the confidence to place this contract with us. The multi-year partnership
agreement provides greater opportunities to demonstrate automated smart
solutions at the airport and showcase the technology to other visiting global
airport groups and stakeholders. This has resulted in new relationships with
the UPS, IAG, Stuttgart, Munich, Cincinnati, and Schiphol airports.
AUTOMOTIVE OVERVIEW
The Group continues to build on its excellent 31-year reputation for
designing, developing, and manufacturing high quality and reliable products to
Automotive Vehicle OEM's.
The refresh of the Aurrigo brand to the automotive sector and the acquisition
of GB Wiring Systems Limited into the Group in 2023 has enabled the Group to
position its latest electric vehicle (EV), advanced electronics and software
capabilities more prominently and expand its customer base more widely.
The Automotive division will develop organic growth through maximising
existing relationships and acquiring new customers. The division will continue
to focus predominantly on technology in wiring systems, electronic control
modules, embedded software and advanced designs with the ability to
manufacture and supply those products to OEM quality requirements and to
IATF16949 standards.
INNOVATION
The Group's strong focus on innovation and R&D continues at pace, with the
next generation of Auto-Dolly® and Auto-DollyTug® now completed. This
automated and class leading baggage and cargo operations vehicle has been
completely developed in-house during 2023. The next phase of development and
innovation will see a 'fleet' of automated baggage handling vehicles piloted
for underwing operations during 2024 and 2025. The Group's Automotive
experience was vital in developing a vehicle which could be manufactured cost
effectively at scale and could be assembled not just in the UK but also in our
key markets of North America and Asia.
SUMMARY
The exciting progress made by the Group during 2022 has continued strongly in
2023 and into 2024, with important aviation industry projects signed and major
advancements completed in the Group's technology portfolio and automated
vehicle capabilities.
Aurrigo's investment in sales and marketing, and the growth of our aviation
industry profile, alongside our signed partnerships with international
clients, is resulting in increased levels of new enquiries and engagements.
I am pleased to report that the Group is in a strong position to deliver on
its objectives set out at IPO.
David Keene
Chief Executive Officer
29 May 2024
FINANCIAL REVIEW
Revenue for the year was £6.6m, an increase of 25% compared to 2022.
The Group has continued its development, post IPO, delivering strong results for the year ended 31 December 2023.
Excellent engagement with the lead aviation customer in Singapore has led to the development of a new automated vehicle for baggage and cargo operations, called Auto-DollyTug®, which boasts increased functionality and capability over any competitor in the market. The advanced features of this vehicle have attracted attention from airports and airlines around the world and the Group was pleased to announce additional contracts signed in the year. Revenue in the Aviation Technology division increased by 355%.
Included in other operating income is grant funding secured in the year for the demonstration of automated passenger vehicles year to the value of £0.6m.
£0.2m of deferred revenue has been released to the P&L Account from grants received in prior years.
Automated passenger vehicle sales and commercial demonstrations revenue fell by £0.2m but was offset by a £0.4m increase in grant funded projects.
Revenue from the Automotive division has increased by £1.3m (26.6%) through market recovery post Covid, organic growth and the acquisition of GB Wiring Systems Limited at the end of May 2023. The acquisition contributed £0.4m to revenue at a margin of 19% and has reduced customer concentration on average by approximately 10%.
Gross profit margin for the year was 22.3% compared to 34.3% in 2022. This reduction has arisen through product mix changes across divisions. Aviation Technology margins have increased to 80.3% in 2023 from 64.5% in 2022 whereas Automotive margins have fallen to 17.1% in 2023 from 31.2% in 2022. The fall in Automotive margins was due to product mix and it is expected that margin will improve through 2024.
Overheads for the year have increased by £1.8m (38.4%) compared to 2022 as a
result of the full year impact of the increased staffing levels within the
Aviation Technology Division and additional regulatory costs.
Adjusted EBITDA was a loss in the year of £3.2m compared to a loss of £0.9m
in 2022. This is favourable to management expectations due to the
implementation of improved cost controls for staffing and overheads.
STATEMENT OF FINANCIAL POSITION
The Group has continued to invest in R&D, capitalizing £0.8m in the year
and carrying net book value of £5.8m as at the year end compared to £5.3m in
2022. Deferred grant income generated through R&D activities resulted in
capitalisation of £3.5m as at the year end and will be released to the
P&L Account in future years.
In November 2023, the Group secured additional funds raising £4.1m with
associated costs of £0.3m.
Through the year funds will be utilised on the continued development of the
Group's Aviation products and build of additional Auto-DollyTug® vehicles,
which have been included within work in progress as at the year end. These
vehicles will be used to generate Aviation revenues in 2024.
As at 31 December 2023, the Group's cash balance was £3.4m, a decrease of
35.7% compared to the period end 2022. The decrease in cash was primarily due
to increased stocks of Aviation vehicles, WIP and continued R&D
activities.
Strong cash management continues to be delivered with a focus on improved
payment terms within contracts.
The acquisition in the year of GB Wiring Systems Limited generated goodwill of
£0.2m at a cost of £0.3m.
OUTLOOK
Aviation revenue has increased in the first quarter of 2024 from the continued
delivery of projects in Singapore and the signing of a number of new customer
contracts. As expected, Automotive product mix has also improved in the first
quarter with an increase of higher margin products. Improved customer payment
terms, continued grant funding successes and tight cost control are having a
beneficial effect on the Group's cash position.
Ian Grubb
Chief Financial Officer
29 May 2024
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
£'000 £'000
Revenue 6,628 5,302
Cost of sales (5,152) (3,483)
Gross profit 1,476 1,819
Other operating 812 278
income
Administrative expenses including non-recurring expenses, share based payment
charges, depreciation, and amortisation (6,325) (4,569)
Operating (4,037) (2,472)
loss
Costs of admission to -(246) (1,010)
AIM
(274) (143)
Share based payments
(294) (208)
Depreciation
(172)
Amortisation
Adjusted EBITDA*
(3,223) (939)
Finance 76 2
income
(46) (26)
Finance
costs
Loss before taxation (4,007) (2,496)
Income tax 90 301
credit
Loss for the year attributable to equity shareholders of the parent
(3,917) (2,195)
Other comprehensive income:
Items that will not be reclassified to comprehensive income
Currency translation differences 7 (2)
Total items that will not be reclassified to comprehensive income
7 (2)
Total other comprehensive income for the year 7 (2)
Total comprehensive income for the year (3,910) (2,197)
Loss and total comprehensive income for the year is all attributable to owners
of the Parent Company. All losses after taxation arise from continuing
operations.
* Adjusted EBITDA refers to earnings before interest, tax, depreciation,
amortisation, impairment, share-based payment charges, and exceptional items.
2023 2022
£'000 £'000
Earnings per
share
15
Basic (£ per share) (0.09) (0.12)
Diluted (£ per share) (0.09) (0.12)
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
2023 2022
£'000 £'000
Non-current assets
Goodwill Intangible assets 202 -
Property, plant, and equipment 5,974 5,403
742 306
Total non-current assets 6,918 5,709
Current assets
Inventories 1,709 931
Trade and other 2,306 1,532
receivables
Current tax recoverable 330 174
Cash and cash equivalents 3,462 5,386
Total current assets 7,807 8,023
Total assets 14,725 13,732
Current liabilities
Trade and other payables 1,818 1,143
Borrowings 30 30
Lease liabilities 216 79
Deferred grant income 217 217
Total current liabilities 2,281 1,469
Net current assets 5,526 6,554
Total assets less current liabilities 12,444 12,263
Non-current liabilities
Borrowings 25 55
Lease liabilities 284 132
Deferred grant income 3,271 3,442
Total non-current liabilities 3,580 3,629
Total liabilities 5,861 5,098
Net assets 8,864 8,634
Equity
Called up share capital 91 83
Share premium account 10,927 7,103
Share option reserve 383 143
Foreign exchange reserve 5 (2)
Retained (losses) / earnings (2,542) 1,307
Total equity 8,864 8,634
The financial statements were approved by the board of directors and
authorised for issue on 30 May 2024
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share premium Share Foreign Retained
Share capital account option reserve exchange reserve (losses)/ earnings
Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 - - - - 3,524 3,524
Year ended 31 December 2022:
Loss for the year - - - - (2,195) (2,195)
Other comprehensive income:
Currency translation differences - - - (2) - (2)
Total comprehensive income for the year
- - - (2) (2,195) (2,197)
Transactions with owners in their capacity as owners:
Issue of share capital
33 8,133 - - - 8,166
Costs of issue set against
premium - (1,030) - - - (1,030)
Share option expense - - 143 - - 143
Deferred tax on share based payment transactions
- - - - 28 28
Issue of share capital from
reserves 50 - - - (50) -
Balance at 31 December 2022 83 7,103 143 (2) 1,307 8,634
Year ended 31 December 2023: - 7
Loss for the year - - - (3,917) (3,917)
Other comprehensive income: Currency translation differences
- - - - 7
Total comprehensive income for
the year - - - 7 (3,917) (3,910)
Transactions with owners in their
capacity as owners:
Issue of share capital 8 4,109 - - - 4,117
Costs of issue set against
premium - (293) - - - (293)
Share option expense - - 246 - - 246
Deferred tax on share based
payment transactions - - - - 62 62
Share options exercised - 8 (6) - 6 8
Balance at 31 December 2023 91 10,927 383 5 (2,542) 8,864
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
£'000 £'000 £'000 £'000
Operating activities
Profit for the year (3,917) (2,195)
Adjustments for:
Tax charge (90) (301)
Finance 46 26
costs
Finance income (76) (2)
RDEC grant income (16) (107)
Amortisation and impairment of
intangible 294 172
assets
Depreciation and impairment of
property, plant, and equipment 274 208
Non cash grant income (796) -
Equity settled share based payment
expense 246 143
(4,035) (2,056)
Movements in working capital:
Increase in inventories (767) (153)
Increase in trade and other
receivables (619) (367)
Increase in trade and other payables 523 58
Cash absorbed by operations (4,898) (2,518)
Interest paid - (2)
Income taxes refunded - 238
Net cash outflow from operating
activities (4,898) (2,282)
Investing activities
Acquisition of subsidiary (net of cash
acquired (refer to note 32)) (199) -
Capitalised development costs (813) (1,155)
Grant income 625 715
Purchase of intangible assets (52) (24)
Purchase of property, plant and
equipment (223) (62)
Interest received 76 2
Net cash used in investing activities (586) (524)
2023 2022
£'000 £'000 £'000 £'000
Financing activities
Interest paid (46) (21)
Proceeds from issue of shares 3,832 7,136
Repayment of bank loans and
borrowings (30) (30)
Payment of lease liabilities (198) (182)
Net cash generated from financing
activities 3,558 6,903
Net (decrease)/increase in cash and
cash equivalents (1,926) 4,097
Cash and cash equivalents at
beginning of year 5,386 1,290
Effect of foreign exchange rates 2 (1)
Cash and cash equivalents at end of
Year 3,462 5,386
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1. Basis of preparation
The Group financial statements have been prepared in accordance with UK
Adopted International Accounting Standards in conformity with the requirements
of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional
currency of the group. Monetary amounts in these financial statements are
rounded to the nearest £1,000.
The financial statements have been prepared under the historical cost
convention. The principal accounting policies adopted are set out below and
consistently applied.
While the financial information in these results has been prepared using the
recognition and measurement principles of UK adopted International Accounting
Standards, this announcement does not contain sufficient information to comply
with this. The principal accounting policies used in preparing the results
have been applied in the comparatives for the year-ended 31 December 2022.
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 December 2023 or 2022, but is
derived from those accounts noting that the Group transitioned to UK Adopted
International Accounting Standards as disclosed in the Admission Document upon
the Group's admission to the AIM Market. Statutory accounts for the year ended
31 December 2022 have been delivered to the Registrar of Companies and those
for the year ended 31 December 2023 will be delivered following the Company's
annual general meeting.
Parent Company
The Group meets the definition of a qualifying entity under FRS 101 Reduced
Disclosure Framework. As permitted by FRS 101, the Group has taken advantage
of the following disclosure exemptions from the requirements of IFRS:
(a) the requirements of IFRS 7 'Financial Instruments: Disclosure';
(b) the requirements within IAS 1 relating to the presentation of certain
comparative information;
(c) the requirements of IAS 7 'Statement of Cash Flows' to present a statement
of cash flows;
(d) paragraphs 30 and 31 of IAS 8 'Accounting policies, changes in accounting
estimates and errors' (requirement for the disclosure of information when an
entity has not applied a new IFRS that has been issued but it not yet
effective); and
(e) the requirements of IAS 24 'Related Party Disclosures' to disclose related
party transactions and balances between two or more members of a Group.
As permitted by S408 Companies Act 2006, the Company had not presented its own
Statement of Comprehensive Income. The Group's profit for the year was
£83,994 (2022 - loss £282,829).
2. Accounting Policies
Company Information
Aurrigo International Plc is a public company limited by shares incorporated
in England and Wales. The registered office is Unit 33 Bilton Industrial
Estate, Humber Avenue, Coventry, CV3 1JL. The company's principal activities
and nature of its operations are disclosed in the directors' report.
The group consists of Aurrigo International Plc and all of its subsidiaries.
Going concern
The Parent Company is an investment holding company and it secured an
additional fund raise of £4.1m during the year with associated costs of
£0.3m. As such the Directors have assessed going concern based on the cash
balance at the year end and the forecasts for the going concern period to
determine whether the Parent Company can continue in operational existence for
the foreseeable future. The Group has consolidated its trading position in the
year, with sales of £6.6m and gross profit of £1.5m. Cash and cash
equivalents amount to £3.5m at the year end.
The Directors have prepared detailed financial cashflow forecasts for the
period to December 2025. These projections are based on the Group's detailed
annual business plan. Sensitivity analysis has been performed to model the
impact of more adverse trends compared to those included in the financial
projections in order to estimate the impact of severe but plausible downside
risks.
The key sensitivity assumptions applied include:
Delay in revenues derived from R&D testing of Autonomous vehicles and
related simulation.
Increased wage rate inflation.
Increased general inflation on input costs, including goods sold.
Mitigating actions available to the Group and the Parent Company were applied
and the Board challenged the assumptions used. After reviewing the forecasts
of the Group and the Parent Company, the Board has formed the judgement at the
time of approving the financial statements that there is a reasonable
expectation that the Group and the Parent Company have adequate resources to
continue in operational existence for at least twelve months from the date of
approval of these financial statements and so will continue to adopt the going
concern basis of accounting when preparing the financial statements.
3. Revenue and Segmental Analysis
IFRS 8 'Operating Segments' requires operating segments to be identified on
the basis of internal reports of the Group that are regularly reviewed by the
Group's chief operating decision maker. The chief operating decision maker
of the Group is considered to be the Board of Directors. The Group has
considered the overriding core principles of IFRS 8 'Operating segments' as
well as its internal reporting framework, management, and operating structure.
The conclusion is that the Group has two operating segments as follows:
• Automotive components - the supply of electrical components for use in
the automotive sector and across other industrial applications, as well as
trim and design components.
• Autonomous - the design, including simulation contracts, development
and manufacture of autonomous vehicles and associated autonomous design and
consultancy services.
Where costs cannot be meaningfully allocated to either primary operating
segment, these are allocated as central costs and overheads.
The Group does not track its assets and liabilities by operating segment, and
as such no information is provided to the chief operating decision maker in
this respect. As such, no disclosure is provided of the segmental analysis of
assets and liabilities.
The revenues are allocated to the following operating segments:
2023 2022
£'000 £'000
Revenue analysed by class of business
Automotive components Autonomous 6,081 4,803
547 499
6,628 5,302
All revenue is recognised at a point in time when the single performance
obligation is satisfied and the product is sold to the customer. This is
usually at the point that the customer has signed for the delivery of the
goods and
the significant risks and rewards of ownership of the goods has transferred to
the customer. There were no volume discounts in the current or prior year.
The Group presents the majority of its direct costs split on a reasonable
basis for the operating segments identified, with any non-allocated income and
costs presented within the central segment. The results are allocated to the
following operating segments:
Automotive components
£'000 Autonomous Central Total
Year ended 31 December 2023: £'000 £'000 £'000
Revenue 6,081 547 - 6,628
Cost of sales (5,044) (108) - (5,152)
Gross profit 1,037 439 - 1,476
Other operating income - 812 - 812
Expenditure - - (5,755) (5,755)
EBITDA 1,037 1,251 (5,755) (3,468)
Depreciation and amortisation - (294) (275) (569)
Operating profit/(loss) 1,037 957 (6,030) (4,037)
Interest receivable - - 76 76
Finance costs - - (46) (46)
Profit/(loss) before tax 1,037 957 (6,000) (4,007)
Automotive Autonomous Central Total
components
Year ended 31 December 2022: £'000 £'000 £'000 £'000
Revenue 4,803 499 - 5,302
Cost of sales (3,306) (177) - (3,483)
Gross profit 1,497 322 - 1,819
Other operating income - 278 - 278
Costs of admission to AIM - - (1,010) (1,010)
Expenditure - - (3,178) (3,178)
EBITDA 1,497 600 (4,188) (2,091)
Depreciation and amortisation - (172) (208) (380)
Operating profit/(loss) 1,497 428 (4,396) (2,471)
Interest receivable - - 2 2
Finance costs - - (26) (26)
Profit/(loss) before tax 1,497 428 (4,420) (2,495)
Revenue from customers who individually accounted for more than 10% of total
Group revenue amounted to £5,022,459 (2022 - £4,051,430) from two customers,
as follows:
2023 2022
£'000 £'000
Customer 1 1,494 1,454
Customer 2 3.528 2,597
5,022 4,051
Revenue from each of the above customers is recognised in the supply of
automotive components segment.
Rest of the World
2023 2022
£'000 £'000
Revenue analysed by geographical market
United 6,208 5,081
Kingdom
Europe 7 162
341 59
6,628 5,302
Assets and liabilities related to contracts with customers:
The Group had no contract assets or contract liabilities at the year-end (2022
- £nil).
4. Other Operating Income
2023 2022
£'000 £'000
Government grants 796 171
Research and development expenditure credit Proceeds from sale of scrap metal 12 107
4 -
812 278
Government grants comprise grant income of £796,089 (2022 - £171,173) in
relation to Innovate UK, Australian and Canadian equivalents, and UK local
government bodies.
The Group has recognised the following liabilities in relation to other grant
income:
2023 2022
£'000 £'000
At 1 January 3,659 2,944
Value of grant income to which entitlement was established in the year 625 886
Amounts recognised in other operating income during the year (796) (171)
At 31 December 3,488 3,659
Included in the above is deferred grant income due within one year of
£217,248 (2022 - £217,248.
The release of deferred grant income is dependent on when amortisation of
development costs begins but there are no other external contingencies in
relation to recognising the grant income, except for the requirement to match
the associated amortisation expense.
5. Earnings Per Share
2023 2022
Number Number
Number of shares
Weighted average number of ordinary shares for basic earnings per share Effect 42,177,356 18,721,737
of dilutive potential ordinary shares:
- Weighted average number outstanding share options
- -
Weighted average number of ordinary shares for diluted earnings per share 42,177,356 18,721,737
2023 2022
£'000 £'000
Earnings
Continuing operations
Loss for the period from continued operations (3,917) (2,195)
2023 2022
£ per share £ per share
Earnings per share for continuing operations
Basic earnings per share (0.09) (0.12)
Diluted earnings per share (0.09) (0.12)
In the current year the Group incurred losses and as such has not presented
any dilutive shares in accordance with IAS 33 'Earnings per share'. The
diluted earnings per share is therefore the same as the basic earnings per
share.
The Group does have a number of share options, which have been issued during
the current year, that would dilute the earnings per share should the Group
become profitable.
There were no share options outstanding at the end of the prior year.
Adjusted earnings per share
The Directors use adjusted earnings before exceptional costs share based
payment expenses, depreciation and amortisation. This creates an alternative
performance measure which the Directors believe reflects a fair estimate of
ongoing profitability and performance. The calculated Adjusted Earnings for
the current period of accounts is as follows:
2023 2022
Number Number
Number of shares
Weighted average number of ordinary shares for basic earnings per share 42,177,356 18,721,737
Effect of dilutive potential ordinary shares:
· Weighted average number outstanding share options - -
Weighted average number of ordinary shares for diluted earnings per share 42,177,356 18,721,737
2023 2022
£'000 £'000
Adjusted earnings
Loss/profit for the period from continued operations (3,917) (2,195)
Adjusted for:
Non-recurring costs - 1,010
Share based payment expense 246 143
Depreciation 274 208
Amortisation 294 172
Net finance costs (30) 24
Taxation (90) (301)
Adjusted earnings for basic and diluted earnings per share (3,223) (939)
2023 20223
£ per share £ per share
Earnings per share for continuing operations
Basic earnings per share (0.08) (0.05)
Diluted earnings per share (0.08) (0.05)
As the adjusted earnings per share still shows the Group incurring losses
during the current year, the dilutive shares have not been presented for the
adjusted earnings per share calculation also. The diluted earnings per share
is therefore the same as the basic earnings per share.
6. Annual Report and Notice of Annual General Meeting
The Annual Report and Accounts for the year ended 31 December 2023, together
with the notice of the Annual General Meeting will be available to download
from the Company's website at
https://aurrigo.com/documents-and-financial-calendar/
(https://aurrigo.com/documents-and-financial-calendar/) and will be posted
today to those shareholders who have elected to receive hard copy.
The Company also announces that its Annual General Meeting (AGM) will be held
on 25th June 2024 at Aurrigo's offices at Unit 33, Bilton Industrial Estate,
Humber Avenue, Coventry, CV3 1JL at 10:00am.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR ALMBTMTJTTIIRecent news on Aurrigo International
See all newsRCS - Aurrigo Int PLC - Auto-DollyTug demonstration at Stuttgart Airport
AnnouncementREG - Aurrigo Int PLC - Result of 2024 Annual General Meeting
AnnouncementREG - Aurrigo Int PLC - AGM Statement
AnnouncementREG - Aurrigo Int PLC - Change of Nominated Adviser and Broker
AnnouncementREG - Aurrigo Int PLC - Full Year Results and Notice of AGM
Announcement