Cleantech Building Materials: Unaudited Interim Results to 30 June 2020
28 August 2020
CLEANTECH BUILDING MATERIALS PLC, NASDAQ FIRST NORTH GROWTH MARKET, COPENHAGEN
TICKER: CBM
Cleantech Building Materials plc
Unaudited Interim Results to 30 June 2020
Cleantech Building Materials plc (“CBM” or the “Company” or the “Group”), presents its unaudited results for the six months ended 30 June 2020. The financial statements are appended to this announcement.
Strategy and Objectives
The CBM Group’s primary strategic objectives for 2020 are:
- To secure the land, permitting and financing required to commence the construction of its own Accoya® wood manufacturing facility in China to enable the commercial production of its own Accoya® wood.
- To increase sales of Accoya® wood imported from Europe both to new and existing wholesalers, and directly to wood manufacturers.
- To build commercial relationships with large-volume Chinese wood manufacturers in anticipation of significant Accoya® wood capacity increase in the Chinese and ASEAN markets once the Group has commenced its commercial production of Accoya® wood.
The Group has made progress towards achieving these objectives during the six months ended 30 June 2020.
Financial Review of the Business
The Group’s revenues for the six months ended 30 June 2020 amounted to €447,000 (six months ended 30 June 2019: €545,000). The revenues were limited by the disruption of construction projects in China and the ASEAN regions due to the Covid pandemic. By the end of the second financial quarter, there were signals that demand was returning to its pre-Covid levels from the Group’s distributors.
The Group realised a net loss of €1,639,000 for the six months ended 30 June 2020 (six months ended 30 June 2019: €2,234,000). The net loss for the current period was mainly due to salaries and professional costs but strict cost control has limited the extent of the loss.
As at 30 June 2020, the Group had cash and cash equivalents of €40,000 (30 June 2019: €25,000) as well as an available facility of approximately €2.97m, and net current liabilities of €839,000 (30 June 2019: €2,020,000). The Group’s financing arrangements now provide sufficient working capital to continue the expansion of the Group’s marketing and sales activities in China and the ASEAN markets, and to progress the financing and build plans for its own Accoya® wood factory in China. Drawdowns under such arrangements have been delayed in recent months due to the Covid pandemic, but are now returning to pre-Covid levels as the business and the factory project advance. The Group continues to closely manage its cash position to ensure that any costs of financing are mitigated as fully as possible.
The Group has been investing to increase its marketing and sales activities and has successfully appointed seven wholesalers and distributors of AccoyaÒ wood in the China and ASEAN regions. These agreements include escalating volume purchase commitments over a three-year period in exchange for market segment exclusivity. All of these Offtake Distribution agreements are extendable beyond 2020, conditional on sales performance. The Group foresees a growing order book from 2020 onwards; but in the short term remains reliant on Titan Wood’s supply of Accoya® wood until the Group has completed the construction of its own Accoya® wood factory.
The Group continues to work closely with our Chinese JV partner, NTAAC, to progress the construction of the first Accoya® wood factory in Asia. The Covid-related travel restrictions between China and Europe have caused some delays, but the overall project is advancing. Since the full year accounts issued in April 2020, the Group and NTAAC have concluded detailed debt contract terms with Bank of Jiangsu for the provision of circa €26m euros in fixed asset mortgage and working capital financing for the joint venture.
Once the Group is producing its own Accoya® wood, the CBM Board believes the financial performance of the Group will be radically transformed.
Events after the reporting date
No material matters to report.
The interim financial information for the six months ended 30 June 2020 was approved by the Board for release on 28 August 2020.
THE DIRECTORS OF CLEANTECH BUILDING MATERIALS PLC ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
Further information may be found at the Company's website at
Further Enquiries:
| Cleantech Building Materials plc Adrian Wyn-Griffiths | 0 |
| Keswick Global AG (Certified Adviser) | 5 |
| IFC Advisory Limited (Financial PR) Tim Metcalfe Zach Cohen | 0 |
The information communicated in this announcement is “inside information” for the purposes of article 7 of the Market Abuse Regulation 596/2014.
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