AMTE Power plc (LON:AMTE), a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, has announced its final results for the year ended 30 June 2022.
Full year results reflect continued investment in commercialisation plans:
· Turnover up 12% to £2.2m (2021: £2.0m)
· Adjusted EBITDA loss of £6.2m (2021: loss £3.1m)
· Cash of £0.9m (2021: £9.3m) and a term deposit of £2m that expired and was released to cash on 7 July 2022
· Loss after taxation of £5.8m (2021: loss £3.7m)
· Growing pipeline of potential business with opportunities of circa £240 million across the AMTE Power product range
· Pathway to commercialisation supported by post year-end £5 million convertible bond facility
Alan Hollis, CEO of AMTE Power, commented:
“I am delighted to have joined AMTE Power at such an exciting stage of its growth trajectory. In our financial year ended June 2022, the company recorded a loss after tax of £5.8m, reflecting the investment needed to commercialise our battery cell technology. I am pleased to say that with demand expected to accelerate as the UK goes electric, we expect this investment to deliver significant returns going forward.
“In the short time I have been with the business I have met teams from across the Group and have been impressed by the depth of knowledge and experience of our highly skilled team.
“AMTE Power has achieved several important milestones during the year including a production contract with the UK Battery Industrialisation Centre, a consistent six-minute full charge time with our Ultra High Power automotive cell and entering into binding heads of terms for Dundee as the preferred site for our first MegaFactory. Together, this puts us in a highly competitive position.
“The business is well placed with high performance products and manufacturing expertise. I look forward to building on the achievements made to date to take the business forward on the next stage of its growth.”
Key achievements
AMTE Power has been making batteries for almost 30 years and is one of the only companies manufacturing them in the UK today. The Company has continued to make good progress across its highly differentiated core products during the period: Ultra High Power, Ultra Safe and Ultra Prime.
· Automotive sector Ultra High Power cells:
o Cells are performing well against the Company’s target specification on commercial scale equipment at the UK Battery Industrialisation Centre (“UKBIC”), demonstrating AMTE Power’s ability to manufacture these cells at high volume scale
o Cells demonstrated a consistent six-minute full charge time in trials
o Significant early interest from major automotive partners
o Expected to commence commercial production in early 2023
· Energy storage sector Ultra Safe cells:
o Cell development is nearing completion having reached its energy density specification of 140 Wh/kg
o Planned to commence production at Thurso for delivery to customers for initial evaluation and project and supply validation
o Initial order signed for 1000 Ultra Safe cells with AceOn – the first supply contract for this product – in a growing pipeline of opportunities which includes large household brands in the energy generation industry as well as smaller entities focussed on energy storage at the household level
· Specialist sector Ultra Prime cells:
o Contracted supply agreement in place
o Progressing to initial supply and trials in 2023, with scale up thereafter
o Initial sales expected to commence in FY24, with production centred on Thurso
· Product development underpinned by commercial agreements
o AMTE Power has non-binding memoranda of understanding in place with key automotive partners Cosworth, Viritech and MAHLE Powertrain, in addition to development agreements with Sprint Power, Eltrium and BMW
· Production contract signed with UKBIC
o Key milestone to upscale production ahead of mass commercialisation, enabling the business to bring products to market quicker
o To produce up to 60,000 Ultra High Power cells per year, over an initial term of 24 months, for the high power automotive and fuel cell electric vehicle markets
o Contract starts in January 2023 for anticipated sales to customers in sufficient scale to allow them to progress to in-vehicle trials
· Binding heads of terms for Dundee, Scotland, as preferred site for first MegaFactory
o Will enable AMTE Power to deliver high value cells to market more quickly and meet high levels of demand for battery technology
o The facility will be capable of producing more than 8 million cells with a revenue stream in excess of £200m
o AMTE Power plans to have its new, state of the art 0.5GWh MegaFactory in Dundee ready within three years
· Strengthened senior management team for next phase of growth
o Alan Hollis and Anita Breslin appointed to the Board as Chief Executive Officer and Chief Financial Officer (Designate) respectively, bringing extensive combined experience to the business. Anita Breslin has today commenced her role as Chief Financial Officer
· £5 million convertible bond facility with Arena Investors announced post year end
o Facility will enable the Company to secure and execute on production contracts for AMTE Power’s core cells: Ultra High Power, Ultra Safe and Ultra Prime
Outlook
· Ultra High Power cell expected to commence commercial production at the UKBIC in early 2023
· Ultra Safe cell expected to commence commercial production at Thurso in 2023
· Ultra Prime cell expected to be produced for initial supply in 2023, with commercial production anticipated at Thurso in 2024
· Business is at an exciting stage of its growth trajectory and strategic plans for the next phase of growth to be outlined in early 2023
Posting of Annual Report and Notice of AGM
AMTE Power’s Annual Report and Accounts for the year ended 30 June 2022 and Notice of Annual General Meeting will be posted to shareholders by Friday 2 December and will also be made available on the Company’s website. The AGM will be held at Bee House, 140 Eastern Avenue, Milton Park, Oxfordshire, OX14 4SB on Thursday 29 December 2022 at 10.00 am.
