REG - Oxford Catalysts Grp - Interim Results

Fri Sep 21, 2012 2:00am EDT

* Reuters is not responsible for the content in this press release.

RNS Number : 7943M
Oxford Catalysts Group PLC
21 September 2012
 



21st September 2012

 

OXFORD CATALYSTS GROUP PLC

("Oxford Catalysts" or "the Group" or "the Company")

 

Interim Results for the Period Ended 30th June 2012

 

Oxford Catalysts Group PLC, the leading technology innovator for synthetic fuels production, is pleased to announce its interim results for the six months ended 30th June 2012.

 

Highlights

 

·   Successful start-up of commercial scale Fischer-Tropsch reactor at client facility with performance matching expectations.

·   Group technology selected for multiple projects including:

Calumet 1,000 bpd commercial Gas-to-Liquids plant;

GreenSky London waste-biomass to jet fuel commercial plant, in partnership with British Airways;

Small-scale Gas-to-Liquids facility commissioned by Rosneft;

California Energy Commission funded synthetic fuels demonstration plant.

·   Able to offer modular integrated Gas-to-Liquids plant in collaboration with Group partners.

·   First milestone payment received for achieving goal relating to Brazil demonstration.

·   Revenue of £3.6 million (H1 2011: £2.9 million).

·   Cash* at period end of £12.1 million (FY 2011: £17.1 million).

 

Pierre Jungels, CBE, Chairman of Oxford Catalysts, said:

 

"The first half of 2012 has been a period of accelerated progress for the Group and we've seen positive momentum continue to build post the period end. Our technology was selected for four exciting and different projects, and we are also taking part in numerous engineering studies with some of the world's largest corporations. There is no doubt that 2012 will be an important year for the Group as we continue on our path towards commercial success. There is an exciting pipeline ahead for our technology and the Board looks to the future with confidence."

 

* Defined as cash, cash equivalents, short term investments and other financial assets.

 

 

There will be a conference call for analysts at 9:30 am; details of which can be obtained from FTI Consulting (see below).

 

For further information, please contact:

 

Oxford Catalysts

Roy Lipski, CEO

Susan Robertson, CFO

 

+44 (0)20 7831 3113

+1 614 733 3300

Cenkos Securities (Nomad and Broker)

Ken Fleming / Beth McKiernan

 

+44 (0)20 7397 8900

+44 (0)131 220 9772

FTI Consulting

Billy Clegg / Alex Beagley

+44 (0)20 7831 3113



Notes to Editors

 

Oxford Catalysts enables modular Gas-to-Liquids ("GTL") plants to convert unconventional, remote and problem gas into valuable liquid fuels. Systems based on the Group's technology (marketed under the brand name Velocys) are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems. Together with world-class partners, Oxford Catalysts provides complete modular GTL solutions that address an untapped market of up to 25 million barrels of fuel a day

 

Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 85 employees with facilities near Oxford, UK and Columbus, Ohio, USA.

 

www.oxfordcatalysts.com

www.velocys.com

CHAIRMAN'S STATEMENT

Pierre Jungels, CBE

 

The first half of 2012 has seen further strong progress for the Group as we continue our transformation from a development organisation to a commercial product provider.

 

The environment for synthetic fuels production looks increasingly attractive, driven by factors such as the need for energy security, the push for cleaner fuel and flare reduction and the desire to unlock value from previously unexploited or low priced gas assets. In particular, the arbitrage between oil and gas prices in North America remains at historic highs and this is contributing to the unprecedented levels of interest that we are seeing in our technology.

 

During May 2012, the first of our full-size Fischer-Tropsch ("FT") reactors went on-line and has been successfully operated in the field. It has already been used as a showcase facility for other potential customers.

 

Working alongside our engineering and technology partners, we are now able to provide a fully integrated modular GTL plant offering to customers, and so far in 2012 the Group's technology has been selected for four different projects in the UK (GreenSky), Russia (Rosneft) and the United States (Calumet and Sierra Energy). All of these are progressing well and we are looking forward to receiving our first firm order to begin manufacturing reactors for a commercial scale plant.

 

The Group continues to progress through extensive engineering cost studies with a number of significant prospective customers. The positive feedback being received from these studies and the selection of our technology for four projects to date continues to validate the Group's confidence in the strong competitiveness of its products.

 

Group revenues for the period were £3.6 million (H1 2011: £2.9 million). Cash* at period end stood at £12.1 million (H1 2011: £21.4 million), while cash* outflow was £5.0 million (H1 2011: £4.3 million).

 

Outlook

There have been significant advances in the Group's technologies over recent years and we are now ready for commercial orders. Our FT technology is being selected for major projects across the globe and we are taking part in numerous engineering studies with some of the world's largest energy and engineering companies. There has been a noticeable acceleration in the Group's progress during the first half of the year and this momentum is set to continue for the remainder of 2012 and beyond.

 

 

* Defined as cash, cash equivalents, short term investments and other financial assets.



Chief Executive's RePORT

Roy Lipski

 

Introduction

The Group has continued to deliver successfully during the first half of 2012 on its key objective of achieving readiness for commercial roll out.

 

Market Conditions

Market conditions for distributed scale synthetic fuels continue to be very positive. The shale gas boom occurring across the world and especially in the US is changing the energy landscape, creating many opportunities for small scale Gas-to-Liquids. In addition, there are numerous opportunities arising from associated or low value stranded gas. In partnership with our key engineering and technology partners, Oxford Catalysts is able to provide a complete, integrated modular GTL plant which is particularly well placed to address these opportunities. As such, we continue to see significant and serious interest in our technology and expect this to remain going forward.

 

Commercialisation

 

Technology Selection

The Group now considers its FT reactor as commercially ready, having been successfully demonstrated at full scale. This is evidenced by the selection of its technology for various projects in the first half of 2012.  

 

In May, the Group announced the selection of its technology for a small-scale GTL facility commissioned by Rosneft, Russia's largest oil producer. Rosneft announced a partnership with technology commercialisation firm Gazohim Techno, to design and construct a GTL plant using the Group's FT technology, with a capacity of at least 10 million cubic metres per year of natural gas, equivalent to approximately 100 barrels per day of synthetic crude. The facility will be located at the Angarsk Petrochemical Company site, and is expected to be complete by the end of 2014. Rosneft has a stated objective and budget to reduce flaring and make better use of associated gas. This facility is the first of many envisioned commercial plants that will convert gas associated with oil production into synthetic crude or high quality downstream products, including synthetic diesel, waxes and naphtha (an important petrochemical feedstock).

 

In July, the Group announced that it had been selected by Solena Fuels Corporation ("Solena") to supply their GreenSky London waste-biomass to jet fuel project, whose leading partner is British Airways. GreenSky London has been established to create Europe's first commercial scale sustainable jet fuel facility. After a formal evaluation of available technologies performed by Fluor Corporation on behalf of Solena, the Group was selected by Solena as the sole supplier of FT technology for GreenSky London. Successful implementation of the GreenSky London project and receipt of the notice to proceed (expected in 2013) will generate revenues to the Group in excess of $30 million (during the construction phase to 2015), and additional ongoing revenues of more than $50 million over the first fifteen years of the plant's operation.

 

In addition, Solena has entered into a term sheet with the Group (subject to conclusion of a detailed master license agreement) for the supply of FT units to its future Biomass-to-Liquids ("BTL") projects with many of the world's leading airlines and shipping companies, including GreenSky California, Rome and Stockholm. Solena recently announced that it is working with Lufthansa towards a long-term bankable jet fuel offtake agreement for a commercial BTL plant to be constructed in Berlin, Germany, at a site identified by Solena. According to the Group's agreement with Solena and currently expected capacity of the plant, receipt of the order and successful implementation of the Berlin project would generate revenues to the Group similar in size to those expected from the GreenSky London project. Whilst there is no firm date at this stage, construction is expected to begin in a few years time.

 

Also in July, the Group announced that its technology was selected by Sierra Energy ("Sierra") for a California Energy Commission ("CEC") funded synthetic fuels demonstration plant. With the help of a $5 million grant from the CEC, Sierra, a waste gasification and renewable energy company, is progressing with building a waste-to-fuels facility in Northern California. The plant will produce clean diesel and other products using a combination of Sierra's proprietary gasifier and the Group's FT technology. It will have a capacity of some 25-100 barrels per day, and is expected to be operational in mid to late 2013. Sierra intends to use this demonstration as the basis for the design and roll out of multiple commercial plants that will convert waste biomass into ultra-clean synthetic fuels.

 

Finally, in September NASDAQ-listed specialty petroleum products manufacturer Calumet Specialty Product Partners, L.P. ("Calumet"), announced plans to expand its Karns City, Pennsylvania facility with the addition of a GTL plant of approximately 1,000 bpd capacity incorporating the Group's FT technology. Calumet intends to use the FT products as feedstock for the production of ultra-high quality speciality products.

 

The plant design is expected to be complete by the end of 2012, with site specific engineering and a decision to begin fabrication occurring in the first half of 2013. Production is targeted to start in the second half of 2014. Financing for the plant is assured, with Calumet intending to provide as much of the capital as required.  

 

A final decision by Calumet to proceed with fabrication is expected to generate revenues to the Group of $10 million during 2013 and 2014. Operation of the plant is expected to generate more than $30 million of income from the ongoing supply of FT catalyst over the first twenty years of production.

 

Demonstration

The Group continues to expand the areas where its technology is being demonstrated. Its FT reactor, which was successfully trialled in Güssing, Austria in 2010-2011, and has been further demonstrated at a larger scale during the first half of 2012. This latest operation arises from the sale of a commercial scale FT unit to an integrated energy company, announced in January 2012. The purpose of this demonstration was to provide detailed engineering parameters for medium scale modular synthetic fuels facilities that the client intends to pursue. In May, the Group was able to announce the successful start-up of this reactor, with performance matching design specifications. It is expected to operate for a further three to six months. As part of our agreement with the client, we have already been able to showcase the facility to other potential customers.

 

The Group's other demonstration, which includes both its FT and Steam Methane Reforming ("SMR") reactors, began operations in Fortaleza, Brazil in late 2011. This project is entirely funded and managed by the Group's offshore GTL partners Toyo Engineering ("Toyo") and MODEC in collaboration with the Brazilian national oil company Petrobras. The precise timing of this programme is subject to change, however the Group remains confident of a successful outcome and is encouraged by the level of support and commitment being provided by Petrobras, Toyo and MODEC. Toyo and MODEC have already paid the Group the first of a number of performance-based milestone payments relating to the achievement of goals during the demonstration programme. This amount was included in the revenue figures for the period. The Group is eligible for further milestone payments upon completion of additional goals during the remainder of the programme, which is now expected to continue into next year with full qualification targeted for the second half of 2013.

 

In addition to continuing field operations during 2012, we have augmented our experimental testing capabilities to improve our understanding of long-term performance and enhance support to customers.

 

In April, we announced that a new experimental facility for testing microchannel reactors began operations at the PTT Research and Technology Institute in Wangnoi, Ayutthaya, Thailand. The new facility, which is operated by PTT, the Thai National Energy Company, was set up under the terms of a research collaboration with the Group, and is designed specifically to test microchannel reactors for GTL applications. The facility will enable PTT to gain valuable experience in the use of microchannel GTL technology, and provide them with the data necessary to carry out detailed engineering evaluations. PTT are particularly interested in the Group's modular GTL technology as a means to monetise associated gas from on-shore wells that is currently disposed of by flaring.

 

In addition, as announced at the Preliminary Results in March, the FT Skid that was successfully demonstrated in Güssing, Austria during 2011 has been returned to the Group's US site where it will form part of an integrated GTL pilot plant alongside the Group's SMR and hydro-processing technologies. This plant is expected to begin operations at the year end.

 

Manufacturing

The Group's strategy is to outsource the manufacture of its reactor and catalysts and to work with engineering partners to provide a complete GTL solution to our customers. The Group is comfortable that it has sufficiently developed its supply chain so that reactors meeting commercial quality and reliability requirements can be delivered for plants ordered in 2012 and beyond. Furthermore, through relationships with catalyst manufacturers the Group can meet the supply requirements for the initial and ongoing catalyst needs for operating plants. The Group has made good progress in developing key partnerships with engineering and other related technology partners to provide a complete solution for its customers. We are pleased with the significant progress that has been made in this area and are confident of our ability to supply competitive products to our customers and to fully support them from when they are commercially deployed.

 

Sales and Prospects

The Group is currently participating in numerous engineering studies with some of the world's largest energy and engineering companies. Due to the nature of the studies, we are not permitted to reveal the companies involved, however we continue to receive positive feedback on our technologies and will update the market as and when we are selected to progress further. We are particularly encouraged by the interest received in our modular capability which enables our technology to be deployed economically and in areas more difficult or expensive to access using conventional technology.

 

Intellectual Property

The Group's current intellectual property portfolio includes over 800 active patent cases and an even larger number of invention records. During the period, the Group filed 2 new patent applications, while 37 existing applications were granted in jurisdictions including the US, Australia, Canada, China, Japan, South Africa, South Korea, and various European countries.

 

This patent portfolio is one of the Group's key strengths and we continue to invest and protect this significant asset, including enforcement to safeguard the Group's business interests. Oxford Catalysts owns or exclusively controls more than 25,000 granted or pending patent claims, which cover a variety of embodiments of processes, reactors and catalysts based on more than 15 years of development. It is because of the strength of this portfolio and the commercial opportunity that the Group receives patent validity challenges by others in the industry. Those that have been examined to-date have been defended successfully.

 

As previously reported, the Group took legal action in April 2010 claiming infringement of its IP against a supplier of CompactGTL (Velocys v. Catacel). The current status of this US case is that the US Federal judge has awarded the Group its motion for sanctions in response to conduct exhibited by the defendant and their counsel. Claims construction arguments have been heard and a ruling is pending.

 

In response to the Group filing the US case against its supplier, CompactGTL challenged eight of the Group's patents in the US and seven in the UK. Of the eight in the US, six have been processed by the US Patents office and have successfully passed re-examination, including one of the patents at suit in the US. The remaining two US patents have not yet been examined. CompactGTL has not continued its challenge in the UK after its initial filing in June 2010.

 

Resources

The Group made a number of key appointments to its operations team in the first half of 2012. This brings the total number of Group employees to 85 with approximately three- quarters in the US and the remainder in the UK.

 

Financial Review

Revenues during the period were £3.6 million (H1 2011: £2.9 million), primarily from development funding from the Group's partners as well as certain government grants.  

 

Losses for the period were £4.9 million (H1 2011: £3.8 million). Cash* outflow in the period was £5.0 million (H1 2011: £4.3 million); we anticipate the second half of the year to be a similar figure.

 

At period end, the Group had £12.1 million of cash* (FY 2011: £17.1 million). Management is closely overseeing the Group's drive for early sales and speed to market, to ensure continued responsible stewardship of the Group's financial resources.

 

 

* Defined as cash, cash equivalents, short term investments and other financial assets.

 



 

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2012

 


Note

6 months
ended
30 June 2012
(unaudited)

£'000

Restated*

6 months
ended
30 June 2011
(unaudited)

£'000

Year ended
31 December
2011
(audited)

£'000

Revenue

3

3,640

2,946

4,722

Cost of sales


(2,208)

(1,794)

(3,253)

Gross profit


1,432

1,152

1,469

Unfunded research and development costs


(3,463)

(2,995)

(6,890)

Share-based payments


(380)

(66)

(841)

Other administrative expenses


(2,655)

(2,349

(4,561)

Total administrative expenses


(6,498)

(5,410)

(12,292)

Operating loss


(5,066)

(4,258)

(10,823)

Finance income


84

85

441

Finance costs


(114)

(19)

(55)

Finance income (costs), net


(30)

66

386

Income tax credit


225

350

793

Loss for the period attributable to equity holders of the Company


(4,871)

(3,842)

(9,644)

Loss per share attributable to equity holders of the Company





Basic and diluted (pence)

4

(5.40)

(4.86)

(11.39)

 

The results from the periods shown above are derived entirely from continuing operations.

 

* 2011 figures for unfunded research and development costs and other administrative expenses have been restated following a review of the allocation of costs. There was no impact to loss for the financial year.

 

 

                               

 

 

 

 

 



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2012

 



6 months
ended
30 June 2012
(unaudited)

£'000

6 months
ended
30 June 2011
(unaudited)

£'000

Year ended
31 December
2011
(audited)

£'000

Loss for the period


(4,871)

(3,842)

(9,644)

Other comprehensive income





Foreign currency translation differences

5

(236)

(584)

                263

Total comprehensive expense for the period


(5,107)

(4,426)

(9,381)

 

 



CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2012

 


Note


30 June 2012
(unaudited)

£'000


30 June 2011
(unaudited)

£'000

31 December
2011
(audited)

£'000

Non-current assets





Intangible assets


25,986

25,075

26,066

Property, plant and equipment


2,096

1,987

2,330



28,082

27,062

28,396

Current assets





Trade and other receivables


1,408

1,286

1,501

Current income tax asset


775

711

550

Inventory


358

64

308

Financial assets - restricted access escrow account


393

312

531

Short term investments - funds held on long-term deposit


1,941

1,000

5,941

Cash and cash equivalents


9,774

20,121

10,579



14,649

23,494

19,410

Total assets


42,731

50,556

47,806

Current liabilities





Trade and other payables


(3,282)

(2,438)

(3,571)

Borrowings


(79)

(93)

(93)



(3,361)

(2,531)

(3,664)

Non-current liabilities





Trade and other payables


(195)

(194)

(190)

Borrowings


(1,234)

(985)

(1,284)

Total liabilities


(4,790)

(3,710)

(5,138)

Net assets


37,941

46,846

42,668

Capital and reserves attributable to owners of the Company





Called up share capital

6

902

902

902

Share premium account

6

65,270

65,268

65,270

Merger reserve

6

369

369

369

Share-based payment reserve

6

6,070

4,915

5,690

Accumulated losses

6

(34,670)

(24,608)

(29,563)

Total equity


37,941

46,846

42,668

 

The financial statements were approved by the Board of Directors on 21st September 2012, and were signed on its behalf by:

 

 

 

Susan Robertson

Chief Financial Officer



CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2012

 


Note

6 months
ended
30 June 2012
(unaudited
)

£'000

6 months
ended
30 June 2011
(unaudited)

£'000

Year ended
31 December
2011
(audited)

£'000

 

Cash flows from operating activities





Cash consumed by operations

7

(4,547)

(4,515)

(8,685)

Tax credit received


225

350

590

Net cash used in operating activities


(4,322)

(4,165)

(8,095)

Cash flows from investing activities





Purchases of property, plant and equipment


(330)

(21)

(866)

Purchases of intangible fixed assets


(226)

(234)

(437)

Interest received


84

76

132

Interest paid


(17)

(19)

(55)

(Decrease) increase in cash placed on deposit and restricted access escrow account


4,131

-

(5,141)

Net cash from (used in) investing activities


3,642

(198)

(6,367)






Cash flows from financing activities





Proceeds of issuance of ordinary shares


0

20,063

20,065

Increase in borrowing


(48)

53

304

Net cash from financing activities


(48)

20,116

20,369

Net increase (decrease) in cash and cash equivalents


(728)

15,753

5,907

Cash and cash equivalents at the beginning of the period


10,579

4,406

4,406

Exchange (losses)/gains on cash and cash equivalents


(77)

(38)

266

Cash and cash equivalents at the end of the period


9,774

20,121

10,579



NOTES TO THE ACCOUNTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

 

1.    Basis of Preparation and Accounting Policies

 

The interim financial report is unaudited and has been prepared using accounting policies consistent with International Financial Reporting Standards ('IFRS') as adopted by the EU and in accordance with IAS 34 'Interim Financial Reporting'.

 

2.    Publication of non-statutory accounts

 

The financial information for the six month periods ended 30 June 2012 and 30 June 2011 has not been audited and does not constitute full financial statements within the meaning of Section 240 of the Companies Act 1985.

 

The financial information relating to the year ended 31 December 2011 does not constitute a full financial statement within the meaning of Section 240 of the Companies Act 1985. This information is based on the Group's statutory accounts for that period. The statutory accounts were prepared in accordance with IFRS, received an unqualified audit report, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain statements under section 237(2) or (3) of the Companies Act 1985. These accounts have been filed with the Registrar of Companies.  

 

3.    SEGMENTAL INFORMATION

 

Business Segments

At 30 June 2012 the Group is organised as a world-wide business comprising a single segment.

 

Geographic Segments

The Group's business operates in three main geographical areas. Revenue is allocated based on the country in which the customer is located.

 


6 months ended 30 June 2012
(unaudited)

6 months ended 30 June 2011
(unaudited)


Europe

£'000

Americas

£'000

Asia Pacific

£'000

Europe

£'000

Americas

£'000

Asia Pacific

£'000

Revenue

162

1,424

2,054

926

744

1,276

 

4.    EARNINGS PER SHARE

 

The calculation of earnings per share is based on the following losses and number of shares:

 


6 months ended 30 June 2012
(unaudited)

6 months ended 30 June 2011
(unaudited)

Year ended 31 December 2011
(audited)



Loss

£'000

Number
of shares

'000

Pence
per share

 


Loss

£'000

Number
of shares

'000

Pence
per share

 


Loss

£'000

Number
of shares

'000

Pence
per share

 

Basic & fully diluted

(4,871)

90,210

(5.40)

(3,842)

79,099

(4.86)

(9,644)

84,681

(11.39)



5.    FOREIGN CURRENCY TRANSLATION

 

The foreign currency translation differences included in the Consolidated Statement of

Comprehensive Income primarily relate to differences arising on the translation into pounds Sterling of a) the Group's net investment in Velocys whose assets and liabilities are denominated in US dollars and b) goodwill and fair value adjustments arising from the acquisition of Velocys in 2008 which are also denominated in US dollars.

 

6.    RECONCILIATION OF MOVEMENT IN TOTAL EQUITY

 


Called up
share
capital

£'000

Share
premium
account

£'000


Merger
reserve

£'000

Share-based payments reserve

£'000


Accumulated Losses

£'000



Total

£'000

At 1 January 2012

902

65,270

369

5,690

(29,563)

42,668

Loss for the period

-

-

-

-

(4,871)

(4,871)

Share-based payments - value of employee services

-

-

-

380

-

380

Foreign currency translation differences

-

-

-

-

(236)

(236)

At 30 June 2012

902

65,270

369

6,070

(34,670)

37,941

 

7.    CONSOLIDATED CASH OUTFLOW FROM OPERATING ACTIVITIES

 


6 months
ended
30 June 2012
(unaudited)

£'000

6 months
ended
30 June 2011
(unaudited)

£'000

Year ended
31 December
2011
(audited)

£'000

Operating loss

(5,066)

(4,258)

(10,823)

Depreciation and amortisation

593

621

1,306

Changes in working capital




 - Trade and other receivables

(146)

(491)

(319)

 - Trade and other payables

(253)

(409)

                   614

 - Inventory

(53)

(64)

(308)

Share-based payments

Other

380

(2)

66

20

841

4

Net cash consumed by operations

(4,547)

(4,515)

(8,685)

 

8.    Contingent Liabilities

 

In April 2010, Velocys filed a lawsuit in the US against Catacel Corp. ("Catacel"), a supplier of catalysts to CompactGTL plc ("CompactGTL"), claiming infringement of several of the Group's United States patents. In response, CompactGTL has challenged the validity of a small number of the Group's UK patents, and have requested re-examination in the US of a small number of the Group's US patents.

 

Whilst the outcome of these cases is not certain, the Directors are confident of the Group's infringement case against Catacel, as well as the validity of those of its patents that are being challenged. Furthermore, the Directors consider that even in the unlikely event of a successful challenge to the few patents in question, this would have no material detrimental impact on the Group's business or the overall strength of its patent portfolio.

 

As at the date of these financial statements, of the patents challenged by CompactGTL, none of the UK or US patents has been revoked; 6 of the US patents have already successfully passed re-examination with the remaining 2 US re-examinations still pending. 

 

Costs incurred to date responding to this challenge have been expensed. However, given the nature of defending UK patent challenges, should its defence be unsuccessful, the Group may be liable for some of CompactGTL's UK legal costs (and vice versa). The Directors intend to vigorously defend the UK action should CompactGTL elect to continue this case. On this basis, no provision has been recognised in respect of this action.

 

The Group's policy is to always explore licensing opportunities for its IP where possible. Management will continue to seek business solutions that forward the Group's interests, in preference to resolution through legal means. 

 

 

 


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