DG Innovate plc (LON:DGI), the advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and energy storage, has announced the Company’s unaudited interim results for the six months ended 30 June 2023.
Chairman’s Report
The first half of 2023 saw progress on all fronts, as we continued with the development of our electric mobility and energy storage technologies and progressed our commercial opportunities, both with existing and new partners. Our shareholders again demonstrated their support despite challenging market conditions via a £418,000 subscription in January, which allowed us to continue work on our various projects and efforts to commercialise our ground-breaking IP.
Post-period end, we completed a further £517,000 placing on 19 July, which has allowed the team to continue development of our technologies. Testing of our Pareta® high-performance electric vehicle drive is ongoing, and work continues on our Scale up Readiness Validation of Parallel Motor for Automotive Applications’ (“SUPAR”) project with the UK Government’s Advanced Propulsion Centre. As outlined in the technology roadmap in the Company’s Strategic Update announced on 11 October 2022 we plan to move into pilot manufacturing and volume supply in due course.
Most recently, the team exhibited our integrated Pareta® drives at CENEX-LCV 2023, the UK’s premier exhibition and conference devoted to low-carbon vehicle and fuel cell technologies. This marked the unveiling of our innovative e-axle for buses and other heavy vehicles, borne out of our ongoing collaboration with BRIST Axle Systems S.r.l. We also demonstrated our Pareta® fleet monitoring and tracking system for the first time alongside our driving simulation software, and have been extremely enthused by the response of existing and potential new partners.
At the beginning of the period, and alongside our fundraising, Sir Stephen Dalton and Andrew Boughtwood stepped down as Non-Executive Directors to reduce the Company’s ongoing costs and ensure that the Company’s board is of an appropriate size and composition for its current stage of development. We remain extremely grateful for their contributions to the Company.
We look forward to updating shareholders further in due course.
Nick Tulloch
Non-Executive Chairman
28 September 2023
Financial Review
For the six months to 30 June 2023, the Group recorded a loss before tax of £1,908,253 (30 June 2022: £6,516,795; 31 December 2022: £7,868,376). There was revenue of £30,240 (30 June 2022: £Nil; 31 December 2022: £4,280) together with £399,641 (30 June 2022: £344,831; 31 December 2022: £433,989) of grant income in the period.
Cash flow
As at 30 June 2023 the Group held cash of £159,958 (30 June 2022: £1,650,352; 31 December 2022: £234,990) in the bank account. The Company raised £418,000 in January, also as stated above, after the period end the Company raised £517,000 through placing of new shares.
R&D repayment of £92,578 was received during the period for the tax credit claim for the year ended 31 March 2023, while an R&D tax credit of £92,697 for the period ended 31 December 2023 was in trade receivables at the period end and was received in August.
DG Innovate is an advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. DG Innovate is currently developing its products alongside a number of major manufacturers across the transportation and energy sectors, research institutions and the UK Government, and has filed 18 patents worldwide. DG Innovate’s current research and development activities are broadly split into two areas, focusing on novel electric motor technologies and energy storage solutions. Its two main products are:
· Enhanced Drive Technology (EDT) – High efficiency, cost-effective electric motors + power electronics;
· Enhanced Battery Technology (EBT) – Sodium-ion batteries offering a sustainable energy storage solution at similar/greater energy density to incumbent technologies at a lower cost, increased safety with lower environmental footprint.
