DG Innovate plc (LSE: DGI), the advanced research and development company developing pioneering solutions in sustainable mobility and energy storage, has announced the Company’s unaudited interim results for the six months ended 30 June 2024.
Chief Executive’s Report
We continued to make excellent progress on the development of our electric mobility and energy storage technologies during the first half of 2024. By the end of January we had highlighted the breadth of commercial opportunities for our Pareta® drive technology with the news that “Approval in Principle” had been received from Lloyd’s Register for its use in marine vessels, as well as signing a Joint Development Agreement with a tier one commercial vehicle components company to jointly develop systems for heavy goods vehicles. Post period end, in July initial prototypes were delivered to the partner in the latter project, with our technical team now supporting testing at the partner’s facility.
In March, we entered into a Memorandum of Understanding with EVage Automotive Pvt. Limited, an Indian electric vehicle maker and automotive technology company. Work continues to conclude the proposed establishment of the associated joint venture in India to manufacture and supply a range of our Pareta® e-drives, and technical specifications for the first motors to be produced there are now being finalised. We continue to target production during 2025.
In May we raised £786,500 through a placing with new and existing investors to continue to fund our commercialisation journey. Post period end, in September, we announced a further fundraising which is expected to ultimately raise in excess of £800,000 on the conclusion of a subscription by certain members of the Company’s management team, post the publication of these interim results and the end of the associated close period. We believe this clearly underpins the team’s belief in DGI’s technology and prospects.
June saw a major shift within DG Innovate’s management team, as our founder and former CTO Martin Boughtwood departed DGI, and we appointed ex-Tesla electric motor design engineer Pierre Pellerey to the same position. Pierre’s motor designs are in more than 3 million electric vehicles worldwide, and the Board believes he is the perfect candidate to get DGI’s products to market.
We also welcomed Sir Michael Fallon and Mark Carleton as Non-Executive Directors in June and (post-period end) July respectively. We believe their impressive credentials lend further credibility to DGI and that their experience will be a major asset to the Board. We also bid farewell to our Non-Executive Chairman Nick Tulloch and Non-Executive Director Peter Tierney, formerly CEO. We remain extremely grateful for their contributions to the Company.
We look forward to updating shareholders further in due course.
Peter Bardenfleth Hansen
Chief Executive Officer
Financial Review
For the six months to 30 June 2024, the Group recorded a loss before tax of £3,044,070 (30 June 2023: £1,908,253; 31 December: 2023: £3,775,945) There was revenue of £116,400 (30 June 2023: £30,240; 31 December 2023: £30,240) together with £250,623 (30 June 2023: £399,641; 31 December 2023: £618,021) of grant income in the period.
Cash flow
As at 30 June 2024, DG Innovate held cash of £818,462 (30 June 2023: £159,958; 31 December 2023: £1,879,70) in the bank account. The Company raised £786,500 in May 2024 through placing of 786,500,000 new shares.
