DG Innovate plc (LON:DGI), the advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, has announced the Company’s unaudited interim results for the six months ended 30 June 2022.
DG Innovate was previously Path Investments plc and the results cover both the period prior to the Company’s acquisition of Deregallera Holdings Ltd (formerly DG Innovate Limited) (“DGI”) on 8 April 2022, when the Company was an investment company, and post the consolidation of DGI from 8 April 2022.
Highlights
| • | Successful completion of the acquisition of DGI and accompanying funding, raising £4.6 million in gross proceeds in April 2022 |
| • | Commencement of an acceleration programme to advance commercial progress with the Company’s suite of electric mobility and storage technologies |
| • | Funding secured from the Ford Low Carbon Vehicle Transformation Fund to support the Company’s ongoing electric motor development programme being carried out in conjunction with global heavy vehicle components supplier, Meritor |
Post Period Highlights
| • | Appointment of Peter Tierney as the Company’s new Chief Executive Officer from 1 July 2022 |
| • | Testing of 250kW Pareta© high-performance electric vehicle drive underway with further cycle testing ongoing |
| • | Collaborative commercial dialogue continues to gather momentum with key partners and launch customers |
| • | UK Government Advanced Propulsion Centre funding secured for the Company’s SUPAR pilot production project, designed to optimise the Pareta® high performance electric vehicle drives to enable substantial upscaling to commercial scale production |
| • | Hard carbon anode material testing underway with positive initial results |
Commenting Nick Tulloch, Non-Executive Chairman of DG Innovate said: “The first half of 2022 was transformational for the Company, as we completed the reverse takeover of DGI to become DG Innovate plc. Since the completion of the reverse takeover significant progress has been made and post-period end, Peter Tierney was appointed as our new CEO. We believe Peter’s significant experience in operating and developing growth-orientated service and manufacturing businesses makes him the ideal candidate to lead the Company as we seek to commercialise our exciting suite of electric mobility and storage technologies, evolving into a differentiated supplier to a number of industry sectors. We look forward to providing further updates in due course.”
Chairman’s Report
The period under review was transformational for the Company, as we published our prospectus and completed the reverse takeover of DGI, becoming DG Innovate plc in the process. We continue to believe that DGI’s IP and the quality of the team offers exciting growth opportunities in the electric mobility and energy storage sectors and remain committed to DGI’s ethos of developing sustainable and environmentally considerate technologies.
We were also delighted with the support of new and existing shareholders in raising £4.6 million and to strengthen our Board through the appointments of a number of new non-executive directors. Their varied but very relevant experience across sectors and disciplines will be put to excellent use as DGI seeks to commercialise its technologies and widen its opportunity set.
Post-period, we announced the appointment of Peter Tierney as our new CEO. We believe Peter’s significant experience in operating and developing growth-orientated service and manufacturing businesses makes him the ideal candidate to lead the Company as we seek to commercialise our exciting suite of electric mobility and storage technologies, evolving into a differentiated supplier to a number of industry sectors.
As subsequently announced, the testing of our 250kw Pareta© high-performance electric vehicle drive is underway, we have been fortunate to attract financial support from the UK Government’s Advanced Propulsion Centre for our Scale up Readiness Validation of Parallel Motor for Automotive Applications’ (“SUPAR”) project and work continues on our sustainable hard carbon anode material.
We look forward to providing further updates in due course.
Nick Tulloch
Non-Executive Chairman
30 September 2022
Financial Review
For the six months to 30 June 2022, the Group recorded a loss before tax of £6,227,231, of which 5,094,074 was an exceptional charge relating to the reverse takeover of DGI. There was negligible revenue in the period other than £344,831 of grant income.
Cash flow
As at 30 June 2022 the Group held cash of £1,650,352.
Chief Executive Remuneration
The Company’s announcement on 16 May 2022 detailing the appointment of Peter Tierney as the Company’s new Chief Executive Officer stated, inter alia, that It had been agreed by the Company and Mr Tierney, at his election and request, that for the months of July, August and September 2022 his monthly salary value, would be paid to him in the equivalent value of shares in the Company, based on the closing offer price of the Company’s shares, on the last business day of each relevant month. Given the relatively depressed price of the Company’s shares on the London Stock Exchange over this period Mr Tierney has agreed with the Company to instead take his remuneration in cash to avoid unnecessary dilutive share issuance at this time.
