28 March 2024
Tribe Technology PLC
("Tribe Tech", the "Company", or the "Group")
Unaudited results for the half year ended 31 December 2023
Tribe Technology PLC (AIM: TRYB), a disruptive developer and manufacturer of autonomous mining equipment, announces its unaudited half-year results for the six months ended 31 December 2023 ("H1 2024" or the "period").
H1 2024 Operating Highlights
During the period the Company made significant progress in the product development of the first generation autonomous TTDS GC 700 drill rig for delivery to Major Drilling Group International Inc ("Major Drilling") ("Rig 1"), continued manufacturing its TTDS GC 700 drill rig ("Rig 2") for supply to Anglo American plc ("Anglo American"), and continued field trials of its sample system product line.
Rig 1 Supply for First Customer Major Drilling
1. Progressed Rig 1 to final assembly and testing.
2. Progressed software programming to enable core autonomous functionality for factory testing.
Rig 2 Manufacturing Commenced for Second Customer Anglo American
1. Fabrication of key sub-assemblies and procurement of components for Rig 2 continued at Tribe Tech's production facility in Northern Ireland.
2. Design and manufacturing improvement opportunities identified during the production of Rig 1 have been implemented to improve the manufacturing cycle time as well as optimise the supply chain for Rig 2.
Sample System
The Company has developed a novel reverse circulation ("RC") sampling system for use with the TTDS GC 700 drill rig. This sample system consists of three main modules - a cyclone, a sample splitter and a sample potting and handling system - and has related patent applications. The Company has made these modules available for sale individually or in combination for use with third party drill rigs. The Company plans to conduct additional technology trials with customers during the second quarter of 2024.
The Company secured a trial and customer demonstration site in December 2023, located at the Australian Automation & Robotics Precinct ("AARP") in Perth, Western Australia.
As announced by the Company in the trading update on 28 December 2024, further field trials of the sample potting and handling system, originally anticipated for late 2023, have been postponed to the second quarter of 2024. This is expected to allow for customer feedback to be incorporated into the final product design of the system.
Financial Highlights
· Trade and other receivables at 31 December 2023 were £1.61m (30 June 2023: £0.79m).
· Trade and other payables at 31 December 2023 were £3.59m (30 June 2023: £3.65m) including £2.12m of contract liabilities in relation to revenue received in advance (30 June 2023: £1.85m).
· At the period-end, net assets/(liabilities) were £1.10m (30 June 2023: (£0.59m)).
· The loss for the six-month period was £2.62m (loss in period to 31 December 2022: £0.87m).
· Cash balance at 31 December 2023 was £3.25m (30 June 2023: £0.87m).
In line with the Company's announcement on 28 December 2023, revenues during the period were lower than anticipated primarily due to delays to the TTDS GC 700 drill rig and sample system trials. However, the Company expects to recognise its first revenues in the second half of this financial year.
During the period the Company entered into a £3.0 million secured term loan facility agreement with BPC UK Lending DAC, details of which were announced on 25 October 2023.
Intellectual Property Progress
The Company is progressively building its intellectual property ("IP") portfolio which consists of trademarks, know-how, trade secrets and patent applications. In addition to the five patent applications filed by the Company in June 2023, Tribe Tech has applied for an additional two patents with the UK Patent Office related to drill rig technology with the objective of further expanding and investing in the Company's IP portfolio.
Post Period
· On 27 March 2024 the Company announced the completion of the Company's first TTDS GC 700 autonomous drill rig. The Company has issued a completion of manufacturing invoice to the client, with revenue to be recognised on the drill rig's arrival in Australia.
· Ancillary products (remote command hub, Sample System, and spares & consumables) to support the deployment of Rig 2 are being manufactured and sales have been realised in quarter one 2024.
· In the first quarter of 2024, the commercial team attended several international mining trade shows such as PDAC (Toronto, Canada) and Indaba (Cape Town, South Africa) where the Company has been promoting the TTDS 700GC and Sample Systems.
· A Joint Development Agreement ("JDA") with Veracio Australia Pty Ltd ("Veracio"), a pioneering technology company with a principal focus on orebody (mineral resource) knowledge, was announced on 28 February 2024 which could lead to new diversified opportunities in mining production related drilling which is a larger market than exploration and resource definition drilling.
Outlook
· Levels of commercial interest for our core products remains strong. The Company expects the deployment of Rig 1 in the field to provide extensive proof points for the existing technology and generate further customer interest.
· Revenue is expected to be recognised in mid-2024 when Rig 1 arrives in Australia at customer site.
· The JDA with Veracio will commence investigation of integrating Tribe Tech's sampling system with Veracio assay-at-the-rig technology. If the technologies are successfully integrated this could open up opportunities in the drill & blast market.
· We expect to progress with further sales opportunities for our sample system cyclone and splitter products during Q2 2024.
Chair and Chief Executive Officer's Statement
"We are excited and encouraged with the progress made since the trading update announced on 28 December 2023. Tribe Tech continues to develop and manufacture its world first autonomous RC drill rig. The first TTDS GC 700 completed factory manufacturing, as announced on 27 March 2024, and is now undergoing factory commissioning prior to shipment to Major Drilling in Western Australia.
This is a very exciting time for the Company and the result of almost five years of research and development efforts. The learnings from this commissioning will provide invaluable data for further improvements on drill rigs and beyond.
Our Sample System product line has also been undergoing extensive field trials at the Australian Automation & Robotics Precinct (AARP) in Perth, Western Australia. The AARP is a recent initiative by Development WA, the state government's central development agency and Tribe Tech is pleased and proud to be a partner.
H1 2024 was a major achievement for Tribe Tech with the Company successfully completing its IPO on 5 September 2023. The £4.6m gross proceeds of the IPO and £3m of debt from Beach Point Capital funded the Company's development and production during H1 2024. The primary use of funds has been the continued development and manufacture of our RC Drill Rigs and Sample System product lines.
Furthermore, Tribe Tech has seen commercial interest from a number of potential global customers, both drilling contractors and mine operators.
Given the growing market interest for our products, and our proprietary technical expertise, we see the future of Tribe Tech to be one of growth and innovation.
The Company wishes to thank all of our partners, customers, suppliers and investors for continued support to deliver the world's first autonomous RC drill rig and continue 'Automating the Toughest Tasks'."
Charlie King - Chief Executive Officer
Caroline Bault - Non-Executive Chair
For further information, please visit www.tribetechgroup.com or contact:
Tribe Technology PLC | via Tavistock |
Charlie King, Chief Executive Officer Eric Hampel, Chief Financial Officer |
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Allenby Capital Limited (Nominated Adviser and Broker) | +44 20 3328 5656 |
John Depasquale / Vivek Bhardwaj / Lauren Wright (Corporate Finance) Tony Quirke / Joscelin Pinnington (Sales & Corporate Broking) | info@allenbycapital.com |
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Tavistock (Financial PR) | +44 20 7920 3150 |
Rebecca Hislaire / Saskia Sizen | tribetech@tavistock.co.uk |
About Tribe Tech
Established in 2019, the Group was founded to create a safer, more efficient work environment through the development of fully autonomous reverse circulation drill rigs in the mining industry. The Group's core activities are the development, in-house manufacturing, and sale of its autonomous RC Drill Rigs incorporating its core proprietary intellectual property, the Tribe Technology Drilling System ("TTDS").
Principal Activities
Tribe Tech continues to pursue its mission create a safer, more efficient work environment in the mining industry through the development of fully autonomous reverse circulation drill rigs. The Group's core activities are the development, in-house manufacturing, and sale of autonomous Tribe Tech RC Drill Rigs incorporating its core proprietary IP, the Tribe Tech Drilling System.
Tribe has two core product lines:
· The TTDS GC 700 is a drill rig used for mineral exploration and resource definition. This product has been developed and is being produced in Tribe's 20,000 square foot leased facility in Northern Ireland.
· The second core product line is the Tribe Tech Sample System which can be retrofit on existing RC drill rigs and sold to major miners and drilling contractors.
CONDENSED CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
|
Note |
| Unaudited Six months to £'000 |
| Unaudited Six months to £'000 |
Continuing operations | | | | | |
Revenue | | | - | | 17 |
Cost of sales | | | (179) | | (154) |
Gross loss | | | (179) | | (137) |
| | | | | |
Other operating income | 3 | | 104 | | 152 |
Administrative expenses | 4 | | (2,584) | | (1,114) |
Operating loss | | | (2,659) | | (1,099) |
| | | | | |
Finance income | 5 | | 18 |
| - |
Finance expense | 6 | | (151) | | (85) |
Loss before taxation | | | (2,792) | | (1,184) |
Taxation | 8 | | 212 | | 250 |
Loss for the period | | | (2,580) | | (934) |
| | |
| | |
Other comprehensive (loss)/income | | |
| | |
Foreign currency retranslation | | | (46) | | 65 |
| | |
| | |
Total comprehensive loss for the period attributable to owners of the parent | | | (2,626) | | (869) |
| | |
| | |
Loss per share from continuing operations attributable to owners of the parent: | | |
| | |
Basic and diluted loss per share (£) | 9 | | (0.02) | | (0.01) |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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| Unaudited 31 December 2023 |
| Unaudited 30 June 2023 |
| Note |
| £'000 |
| £'000 |
ASSETS | |
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|
|
|
Non-current assets | |
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|
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Property, plant and equipment | |
| 255 | | 206 |
Intangible assets | |
| 70 | | 28 |
Right-of-use asset | 10 |
| 369 | | 523 |
Lease receivable | 10 |
| 30 | | - |
Total non-current assets | |
| 724 | | 757 |
| |
|
|
|
|
Current assets | | | | | |
Inventories | | | 2,358 | | 1,688 |
Trade and other receivables | | | 1,608 | | 795 |
Lease receivable | 10 | | 26 | | - |
Cash and cash equivalents | | | 3,259 | | 879 |
Total current assets | | | 7,251 | | 3,362 |
| | | |
|
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Total assets | | | 7,975 | | 4,119 |
| | |
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Liabilities | | |
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Current liabilities | | |
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Trade and other payables | 11 | | 1,843 | | 1,921 |
Lease liabilities | 10 | | 177 |
| 209 |
Borrowings | 12 | | 112 |
| 220 |
Total current liabilities | | | 2,132 |
| 2,350 |
| | | | | |
Non-current liabilities | | |
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Borrowings | 12 | | 2,789 | | 359 |
Lease liabilities | 10 | | 197 | | 264 |
Other payables | 11 | | 1,755 | | 1,737 |
Total non-current liabilities | | | 4,741 |
| 2,360 |
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Total liabilities | | | 6,873 | | 4,710 |
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Net assets/(liabilities) | | | 1,102 | | (591) |
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Equity | | | | | |
Share capital | 13 | | 111 | | 61 |
Share premium | 13 | | 6,269 | | - |
Shares to be issued | 14 | | - | | 2,081 |
Merger reserve | 14 | | 3,183 | | 1,690 |
Share-based payment reserve | 14 | | 85 | | 4 |
Foreign exchange reserve | 14 | | (118) | | (72) |
Accumulated losses | 14 | | (8,428) | | (4,355) |
Total equity | | | 1,102 | | (591) |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Share capital |
| Share premium |
| Shares to be issued |
| Merger reserve |
| Share-based payment reserve |
| Foreign exchange reserve |
| Accumulated losses |
| Total equity |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| | | | | | | | | | | | | | | |
Balance at 01 July 2022 (Unaudited) | 61 | | - | | 2,081 | | 3,183 | | - | | (68) | | (2,559) | | 2,698 |
Comprehensive income | | | | | | | | | | | | | | | |
Loss for the year | - | | - | | - | | - | | - | | - | | (3,289) | | (3,289) |
Other comprehensive income | - | | - | | - | | - | | - | | (4) | | - | | (4) |
Transactions with owners | | | | | | | | | | | | | | | |
Share-based payments | - | | - | | - | | - | | 4 | | - | | - | | 4 |
Balance at 30 June 2023 (Unaudited) | 61 | | - | | 2,081 | | 3,183 | | 4 | | (72) | | (5,848) | | (591) |
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Balance at 01 July 2023 | 61 | | - | | 2,081 | | 3,183 | | 4 | | (72) | | (5,848) | | (591) |
Comprehensive income | | | | | | | | | | | | | | | |
Loss for the year | - | | - | | - | | - | | - | | - | | (2,580) | | (2,580) |
Other comprehensive income | - | | - | | - | | - | | - | | (46) | | - | | (46) |
Transactions with owners | | | | | | | | | | | | | | | |
Issue of shares | 50 | | 6,638 | | (2,081) | | - | | - | | - | | - | | 4,607 |
Share issue costs | - | | (369) | | - | | - | | - | | - | | - | | (369) |
Share-based payments | - | | - | | - | | - | | 81 | | - | | - | | 81 |
Balance at 31 December 2023 (Unaudited) | 111 | | 6,269 | | - | | 3,183 | | 85 | | (118) | | (8,428) | | 1,102 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
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| Unaudited Six months to 2023 |
| Unaudited Six months to 2022 |
| Note |
| £ |
| £ |
Cash flow from operating activities | | | | | |
Loss before taxation from continuing activities | | | (2,792) | | (1,184) |
Adjustments for non-cash/non-operating items: | | |
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Depreciation of property, plant and equipment | | | 19 | | 12 |
Amortisation of intangible assets | | | 8 | | 4 |
Amortisation of right-of-use assets | 10 | | 95 | | 60 |
(Gain)/loss on disposal of right-of-use assets | 10 | | (9) | | 1 |
Shares issued in lieu of cash settlement | | | 174 | | - |
Share-based payment expense | 14 | | 81 | | - |
Movement in provisions | | | 18 | | - |
Finance income | 5 | | (18) | | - |
Finance expense | 6 | | 151 | | 85 |
| | | (2,273) | | (1,022) |
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| | |
Increase in inventories | | | (670) | | (606) |
Increase in trade and other receivables |
| | (889) | | (432) |
(Decrease)/increase in trade and other payables | | | (78) | | 712 |
Cash used in operations | | | (3,910) | | (1,348) |
R&D tax credits received | | | 287 | | 250 |
Net cash used in operating activities | | | (3,623) | | (1,098) |
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Cash flow from investing activities | | |
| | |
Purchase of property, plant and equipment | | | (67) | | (17) |
Purchase of intangible assets | | | (50) | | - |
Interest received | | | 18 | | - |
Net cash used in investing activities | | | (99) | | (17) |
| | |
| | |
Cash flow from financing activities | | |
| | |
Principal paid on lease liabilities | 10 | | (94) | | (88) |
Interest paid on lease liabilities | 10 | | (17) | | (28) |
Rental income from sublease | 10 | | 11 | | - |
Issue of shares | | | 4,433 | | - |
Issue of shares in Tribe Technology Group Ltd | | | - | | 1,336 |
Share issue costs | | | (369) | | - |
Repayment of borrowings | | | (558) | | - |
Proceeds from borrowings, net of costs | | | 2,880 | | 506 |
Other interest paid | | | (134) | | (57) |
Net cash generated from financing activities | | | 6,152 | | 1,669 |
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Net increase in cash and cash equivalents | | | 2,430 | | 554 |
Cash and cash equivalents at the beginning of the period | | | 879 | | 232 |
Effect of foreign exchange rates | | | (50) | | 60 |
Cash and cash equivalents at the end of the period | | | 3,259 | | 846 |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Company information
Tribe Technology Plc (the "Company") is a public limited company, limited by shares (not guarantee) and is incorporated and domiciled in Northern Ireland. The address of the registered office is 7b Enterprise Way, Mallusk, Belfast, BT36 4EW. The registered number of the Company is NI695862. The consolidated interim financial statements consolidate those of the Company and its subsidiaries.
2. Summary of significant accounting policies
Basis of preparation
These condensed consolidated interim financial statements include the results of the Company and its subsidiaries ("the Group") for the six months ended 31 December 2023 and have not been audited. The comparative periods presented have also not been audited due to these periods including the consolidated financial statements of the Company and its subsidiaries as a result of the share-for-share exchange, as detailed below. These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.
These condensed consolidated interim financial statements have been prepared in accordance with AIM rules and the recognition and measurement requirements of UK-adopted International Accounting Standards ("IFRS"). The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies that will be applied in the Group's annual financial statements for the period ending 30 June 2024.
The condensed consolidated interim financial statements are presented in thousands of Pounds Sterling ("£'000"), which is the functional and presentational currency of the Group.
On 20 June 2023, the Company entered into a share-for-share agreement pursuant to which the Company acquired 100% of the share capital of Tribe Technology Group Limited in exchange for shares in the Company. This transaction was considered a combination of entities under common control and falls out of the scope of IFRS 3 'Business Combinations'. IFRS does not specifically state how combinations of entities under common control are accounted for. Therefore, in accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors', the Directors have considered merger accounting principles, as set out in FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under this method, the financial statements of the parties to the combination are aggregated and presented as though the combining entities had always been part of the same group, therefore the consolidated interim financial statements include the assets and liabilities of the Group as at 31 December 2023 and in the comparative period to 30 June 2023. The opening consolidated statement of changes in equity as at 1 July 2022 includes the share capital of the Company and the reserves of the combined Group. The investment by the Company in Tribe Technology Group Limited is eliminated and the difference between the fair value and nominal value of the shares was adjusted through the merger reserve in the Group statement of financial position, along with any existing share premium in Tribe Technology Group Limited.
Basis of consolidation
The consolidated interim financial statements consolidate the interim financial statements and the results of the Company and its subsidiary undertakings Tribe Technology Group Limited and Tribe Technology Group Pty Ltd, made up to 31 December 2023.
Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Income, expenditure, unrealised gains and intra-Group balances arising from transactions within the Group are eliminated.
Going concern
The Group and Company do not yet generate significant revenue however, the Group does have signed contracts in place with customers guaranteeing a quantity of drill rig sales over the next five years which will generate trading revenues once the rigs have been delivered to external customers. To secure its working capital position the Group undertook an IPO on 5 September 2023, the proceeds from which will be applied towards the production of its automated drill rigs. Subsequent to the IPO the Group also secured an additional term debt facility of £3.0 million to further extend its working capital. This facility has covenants which periodically test Cash Balance, EBITDA, and Revenue of the Company. The Directors have prepared trading and cash flow forecasts for at least 12 months from the date of approval of these financial statements. After reviewing these forecasts and projections, the Directors continue to adopt the going concern basis of accounting in the preparation of the financial statements. The Directors note that as the Group's products are in the development stage and have not yet completed customer acceptance testing there remains a customer acceptance risk, or should negative market conditions occur or projected sales fail to materialise, or are delayed, there is a risk of the Group breaching the term debt facility covenants which would lead to an event of default or the Group needing to repay its debt facilities in full.
The interim financial statements have been prepared on a going concern basis and do not include the adjustments that would be required should the going concern basis of preparation no longer be appropriate.
3. Other operating income
| Unaudited Period ended 31 December 2023 |
| Unaudited Period ended 31 December 2022 |
| £'000 |
| £'000 |
Grants received | 92 |
| 124 |
Other income | 12 | | 28 |
| 104 | | 152 |
4. Expenses by nature
Operating loss is stated after charging/(crediting):
| Unaudited Period ended 31 December 2023 | | Unaudited Period ended 31 December 2022 |
| £'000 | | £'000 |
Depreciation of property, plant and equipment | 19 | | 12 |
Amortisation of intangible assets | 8 | | 2 |
Amortisation of right-of-use assets | 94 | | 61 |
(Gain)/loss on disposal of right-of-use assets | (9) | | 2 |
Defined contribution pension plan | 84 | | 38 |
5. Finance income
| Unaudited Period ended 31 December 2023 | | Unaudited Period ended 31 December 2022 |
| £'000 | | £'000 |
Interest received on finance leases | 2 | | - |
Bank interest | 16 | | - |
Total finance income | 18 | | - |
6. Finance expense
| Unaudited Period ended 31 December 2023 | | Unaudited Period ended 31 December 2022 |
| £'000 | | £'000 |
Interest on bank loans & overdrafts | 134 | | 57 |
Interest on lease liabilities | 17 | | 28 |
Total finance expense | 151 | | 85 |
7. Segmental reporting
The Chief Operating Decision Maker ("CODM") has been identified as the Directors. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM has determined that there is one single operating segment, the provision of drill rigs. Whilst the Group has two separate revenue streams, in the UK and Australia, management considers its principal activity is one single operating segment, with all revenue streams and divisions of the Group having similar economic characteristics.
8. Taxation
| Unaudited Period ended 31 December 2023 | | Unaudited Period ended 31 December 2022 |
| £'000 | | £'000 |
Analysis of credit in the period | | | |
Current tax loss for the period | - | | - |
R&D tax credits | 212 | | 250 |
Total current tax | 212 | | 250 |
Deferred tax | | | |
Origination and reversal of timing differences | - | | - |
Total deferred tax | - | | - |
Tax credit per statement of comprehensive income | 212 | | 250 |
9. Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based on the loss attributable to equity holders divided by the weighted average number of shares in issue during the period.
The loss incurred by the Group means that the effect of any outstanding warrants and options would be considered anti-dilutive and is ignored for the purposes of the loss per share calculation.
The weighted average number of ordinary shares has been adjusted in both periods presented for the effect of the 600:1 share subdivision that took place in the period to 31 December 2023.
| Unaudited |
| Unaudited |
| Period ended 31 December 2023 £'000 |
| Period ended |
Loss for the period from continuing activities | (2,626) | | (869) |
| | | |
| Period ended 31 December 2023 No. |
| Period ended |
Weighted average number of ordinary shares | 167,618,514 | | 121,589,400 |
| | | |
| Period ended 31 December 2023 |
| Period ended |
Basic and diluted loss per share (£) | (0.02) | | (0.01) |
10. Leases
The Group as a lessee
The Group leases a number of assets in the jurisdictions from which it operates in with all lease payments, in-substance, fixed over the lease term. All expected future cash out flows are reflected within the measurement of the lease liabilities at each period end.
Right-of-use assets
Cost | Leasehold property £'000 |
| Software assets |
| Equipment |
| Motor vehicles £'000 |
| Total £'000 |
At 1 July 2022 | 617 | | 23 | | 174 | | 96 | | 910 |
Additions | 10 | | - | | 18 | | - | | 28 |
Disposals | - | | - | | (36) | | (32) | | (68) |
FX | 29 | | (2) | | (1) | | (1) | | 25 |
At 30 June 2023 | 656 | | 21 | | 155 | | 63 | | 895 |
Amortisation | | | | | | | | | |
At 1 July 2022 | 154 | | 4 | | 24 | | 8 | | 190 |
Charge for the period | 129 | | 5 | | 32 | | 9 | | 175 |
Disposals | - | | - | | (3) | | (3) | | (6) |
FX | 13 | | - | | - | | - | | 13 |
At 30 June 2023 | 296 | | 9 | | 53 | | 14 | | 372 |
Net book amount | | | | | | | | | |
At 30 June 2023 | 360 | | 12 | | 102 | | 49 | | 523 |
Cost | Leasehold property £'000 |
| Software assets |
| Equipment |
| Motor vehicles £'000 |
| Total £'000 |
At 1 July 2023 | 656 | | 21 | | 155 | | 63 | | 895 |
Additions | - | | - | | 11 | | - | | 11 |
Disposals | (125) | | - | | - | | - | | (125) |
FX | (31) | | - | | - | | - | | (31) |
At 31 December 2023 | 500 | | 21 | | 166 | | 63 | | 750 |
Amortisation | | | | | | | | | |
At 1 July 2023 | 296 | | 9 | | 53 | | 14 | | 372 |
Charge for the period | 54 | | 4 | | 29 | | 8 | | 95 |
Disposals | (69) | | - | | - | | - | | (69) |
FX | (17) | | - | | - | | - | | (17) |
At 31 December 2023 | 264 | | 13 | | 82 | | 22 | | 381 |
Net book amount | | | | | | | | | |
At 31 December 2023 | 236 | | 8 | | 84 | | 41 | | 369 |
Lease liabilities
| Leasehold property £'000 |
| Software assets |
| Equipment |
| Motor vehicles £'000 |
| Total £'000 |
| | | | | | | | | |
At 1 July 2022 | 488 | | 19 | | 118 | | 77 | | 702 |
Additions | - | | - | | 15 | | - | | 15 |
Remeasurement | (22) | | - | | - | | - | | (22) |
Interest expense | 33 | | 2 | | 10 | | 7 | | 52 |
FX | 17 | | (2) | | - | | (2) | | 13 |
Lease payments (including interest) | (152) | | (11) | | (55) | | (14) | | (232) |
Disposals | - | | - | | (29) | | (26) | | (55) |
At 30 June 2023 | 364 | | 8 | | 59 | | 42 | | 473 |
| | | | | | | | | |
At 1 July 2023 | 364 | | 8 | | 59 | | 42 | | 473 |
Additions | - | | - | | 11 | | - | | 11 |
Interest expense | 11 | | 1 | | 3 | | 2 | | 17 |
FX | (16) | | - | | - | | - | | (16) |
Lease payments (including interest) | (75) | | (5) | | (26) | | (5) | | (111) |
At 31 December 2023 | 284 | | 4 | | 47 | | 39 | | 374 |
Reconciliation of minimum lease payments and present value
| 31 December 2023 |
| 30 June 2023 |
| £'000 | | £'000 |
Within 1 year | 118 | | 224 |
Later than 1 year and less than 5 years | 291 | | 300 |
After 5 years | - | | - |
Total including interest cash flows | 409 | | 524 |
Less: interest cash flows | (35) | | (51) |
Total principal cash flows | 374 | | 473 |
Classification of current and non-current lease liabilities
| 31 December 2023 |
| 30 June 2023 |
| £'000 | | £'000 |
Current | 177 | | 209 |
Non-current | 197 | | 264 |
Total | 374 | | 473 |
The Group as a lessor
The Group sublets a leased property which is accounted for as a finance lease.
Lease receivable
| Leasehold property £'000 |
At 1 July 2023 | - |
Additions | 65 |
Interest income | 2 |
Lease payments received | (13) |
FX | 2 |
At 31 December 2023 | 56 |
Reconciliation of minimum lease payments receivable and present value
| 31 December 2023 |
| 30 June 2023 |
| £'000 | | £'000 |
Within 1 year | 32 | | - |
Later than 1 year and less than 5 years | 29 | | - |
After 5 years | - | | - |
Total including interest cash flows | 61 | | - |
Less: interest cash flows | (5) | | - |
Total principal cash flows | 56 | | - |
11. Trade and other payables
| 31 December 2023 |
| 30 June 2023 |
| £'000 |
| £'000 |
Amounts falling due within one year: |
| | |
Trade payables | 486 | | 698 |
Social security and other taxes | 74 | | 149 |
Contract liabilities | 1,075 | | 800 |
Other payables | 208 | | 274 |
| 1,843 | | 1,921 |
| | | |
Amounts falling due after one year: | | | |
Contract liabilities | 1,054 | | 1,054 |
Other provisions | 647 | | 629 |
Deferred tax | 54 | | 54 |
| 1,755 | | 1,737 |
A provision has been made for an amount of £647k (30 June 2023: £629k) by the Group resulting from an onerous contract. This amount will be released over the remainder of the contract in line with the accounting policy.
Contract liabilities includes deferred income relating to advance contract payments.
12. Borrowings
| 31 December 2023 |
| 30 June 2023 |
| £'000 |
| £'000 |
Current: |
|
|
|
Bank loans | 112 | | 220 |
|
|
|
|
Non-current: |
| | |
Bank loans | 2,789 | | 359 |
|
| | |
Total borrowings | 2,901 | | 579 |
Bank loans include a facility entered into in the period of which £3m was drawn down prior to the period end, bearing interest of 13% per annum and repayable over 5 years, with payments of interest only for the first twelve months. Transaction costs of £120k have been included. Amounts related to this loan due less than one year total £96k with the remainder being repaid post year end. A bank loan with a total principal amount of £500k, partly drawn down in 2022 (£250k) and in 2023 (£250k), was repaid in full in the period. The bank loans are secured by fixed and floating charges over the Company's assets.
| 31 December 2023 |
| 30 June 2023 |
| £'000 |
| £'000 |
Opening balance | 579 | | 1,180 |
Proceeds from bank loans | 2,880 | | 740 |
Interest expense | 134 | | 106 |
Repayment of bank loans (including interest) | (692) | | (1,447) |
Closing balance | 2,901 | | 579 |
13. Share capital
Allotted, called up and fully paid | 31 December 2023 Number |
| 30 June 2023 Number |
Ordinary shares of £0.0005 each | 221,947,771 | | 116,587,800 |
A Ordinary shares of £0.0005 each | - | | 5,000,400 |
Deferred shares of £0.0001 each | - | | 7,334 |
Total share capital | 221,947,771 | | 121,595,534 |
The number of Ordinary and A Ordinary shares at 30 June 2023 have been adjusted to reflect the 600:1 share subdivision that took place in the period to 31 December 2023.
During the period ended 31 December 2023, the A Ordinary shares were converted into Ordinary shares.
Deferred shares entitle shareholders to £0.01 in aggregate upon winding up the Company but carry no voting rights. During the period ended 31 December 2023, the deferred shares were cancelled.
Movement in ordinary shares | Number of shares |
| Number of shares |
| Share capital |
|
Share premium |
| £0.30 ordinary shares |
| £0.0005 ordinary shares |
| £ |
| £ |
At 01 July 2022 | 2 | | - | | 1 | | - |
Issue of shares | 202,647 | | - | | 60,794 | | - |
Cancellation of shares | (2) | | - | | (1) | | - |
At 30 June 2023 | 202,647 | | - | | 60,794 | | - |
Effect of 600:1 share subdivision | (202,647) | | 121,588,200 | | - | | - |
Bonus issue of shares | - | | 28,411,801 | | 14,206 | | - |
Issue of shares - cash | - | | 71,947,770 | | 35,974 | | 6,638,429 |
| - | | 221,947,771 | | 110,974 | | 6,638,429 |
Cost of share issue | - | | - | | - | | (369,314) |
At 31 December 2023 | - | | 221,947,771 | | 110,974 | | 6,269,115 |
13. Reserves
Share capital
Share capital represents the nominal value of shares that have been issued.
Share premium
Share premium represents any premiums received on issue of share capital. Any transaction costs associated with the issue of shares are deducted from share premium.
Shares to be issued
Shares to be issued represents cash received in advance of 26,018,710 shares being issued in relation to advanced subscription agreements which are considered equity, as the holders have no option to convert these back to cash. They were settled on IPO of the Company at £0.08 per ordinary share.
Merger reserve
On 20 June 2023, Tribe Technology Plc acquired the 202,647 ordinary shares (100% of the share capital) in Tribe Technology Group Limited, in return for the issue of 202,647 ordinary shares with a nominal value of £0.3 each (refer note 2). This transaction falls under section 612 of the Companies Act and merger relief was applied.
On consolidation, the Company's investment in Tribe Technology Group Limited is eliminated and the difference between the fair value of the consideration and the share capital and share premium of Tribe Technology Group Limited is recognised in the merger reserve, resulting in a merger reserve of £3,183,000.
Share-based payments reserve
Cumulative fair value of options charged to the consolidated income statement net of transfers to the profit or loss reserve on exercised and cancelled/lapsed options.
Foreign exchange reserve
Exchange reserve represents the differences arising on translation of foreign assets and liabilities.
Accumulated losses
Accumulated losses relate to cumulative net gains and losses less distributions made.
14. Share-based payments
Share options
Tribe Technology Group Limited operated an equity-settled share-based remuneration scheme for employees. These options were to lapse if the individual leaves within 10 years from the date of grant if all vesting conditions had not been met earlier. These options were superseded, and all options were transferred into new options held by Tribe Technology Plc as part of the share-for-share transaction that took place on 20 June 2023. The exercisable options held were transferred to equivalent options.
The terms and conditions of the grants outstanding as at 31 December 2023 are detailed below:
Date of grant | No. of options | Exercise price £ | Vesting conditions | Contractual life of options |
30 June 2023 | 3,206,560 | 0.0005 | See below* | 10 years |
\* The options vest on the earlier of 2 years from the date of grant, or an exit event, such as a sale or takeover.
The number of options and exercise price above have been adjusted for the effect of a 600:1 share subdivision.
The fair value of options granted and outstanding were measured using the Black-Scholes model, with the following inputs:
| 2023 |
Fair value at grant date | £0.101 |
Share price | £0.101 |
Exercise price | £0.005 |
Expected volatility | 56.5% |
Option life | 2 years |
Risk free interest rate | 4.97% |
Details of the number of share options granted, exercised, lapsed and outstanding at the end of each period as well as the weighted average exercise prices in £ ("WAEP") are as follows:
| 31 December 2023 |
|
WAEP |
| 30 June 2023 |
|
WAEP |
Outstanding at beginning of period | 3,206,560 | | 0.0005 | | - | | - |
Granted during the period | - | | - | | 3,206,560 | | 0.0005 |
Outstanding at year end | 3,206,560 | | 0.0005 | | 3,206,560 | | 0.0005 |
The number of share options and WAEP have been adjusted in all periods presented for the effect of a 600:1 share subdivision which occurred during the period.
As at 31 December 2023, the remaining contractual life for the options outstanding is 9.47 years (30 June 2023: 9.98 years).
During the period, a share-based payment expense of £81k (31 December 2022: £Nil) has been recognised in the statement of comprehensive income.
15. Share-based payments (continued)
Warrants
The Company grants warrants at its discretion to certain investors.
On 20 June 2023, as part of the share-for-share exchange, warrant holders agreed to cancel the warrants in Tribe Technology Group Limited in consideration of the issue by the Company of new warrants to subscribe for shares in the Company.
The warrants granted in the period ended 31 December 2023 have an exercise price of £0.07914 and may be exercised at any time until 1 June 2026.
Details of the number of warrants granted, exercised, lapsed and outstanding at the end of each period as well as the WAEP in £ are as follows:
| 31 December 2023 |
|
WAEP |
| 30 June 2023 |
|
WAEP |
Outstanding at beginning of period | 4,478,229 | | 0.07914 | | - | | - |
Granted during the period | - | | - | | 4,478,229 | | 0.07914 |
Outstanding at year end | 4,478,229 | | 0.07914 | | 4,478,229 | | 0.07914 |
The number of warrants and WAEP have been adjusted in all periods presented for the effect of a 600:1 share subdivision which occurred during the period.
The remaining contractual life for the warrants outstanding is 2.42 years (30 June 2023: 2.92 years).
16. Events after the reporting period
There have been no significant events since the end of the reporting period.
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