Zenova Group PLC (AIM: ZED), a provider of innovative fire safety and heat management technology and products, today announces its interim results for the six months ended 31 May 2022.
Significant progress has been made in the period:
- Financial highlights for the period
- Revenue generation has commenced from previously announced international sales contracts.
- Sales for the six months to 31 May 2022 of £75k (2021 – £6k).
- Operating loss for the period of £1,038k (2021 – £271k) driven by spending on product development, testing, and marketing.
- Cash balance at 31 May 2022 of £1.7 million.
- Key contracts signed
- United States of America – distribution agreement signed with Omnis Panels LLC to distribute Zenova products throughout the construction sector.
- UK – Beyond Surface Solutions appointed as a stockist and reseller of Zenova products.
- Key new clients
- NHS Epsom and St Helier University Hospitals Trust to use Zenova products throughout the Trust`s estate.
- UK TV and film industry: Bells and Two Tones Fire and Rescue Limited, the leading fire safety provider for the film industry, has assessed, approved, and placed its first order of Zenova fire safety products.
- Scalable manufacturing is in place in three separate jurisdictions (Europe, UK and Canada) to help ensure the supply of all Zenova products to satisfy the expected growth in demand across multiple geographies while minimizing shipping costs.
Post period end highlights
- Significant contracts signed, orders placed, and/or products specified
- £1.2m contract signed in June for a minimum delivery of Zenova products within 12 months with Ethmaar Investment Company, Saudi Arabia.
- Zenova IR specified with KC Cabins Solutions Ltd to provide enhanced insulation for 250 of their new modular eco-home range of buildings for an initial quantity of 50,000 litres.
- SIG Plc has now placed orders for Zenova FP, IP, IR and Primer products. SIG Plc is an experienced specialist within the construction sector and one of the largest in the UK and with a significant presence in Europe.
- Pinewood studios has now been supplied with FP and WB products, thus providing solutions to greatly improve their fire safety.
- Investor updates
- Lock-In agreements entered into by Directors and founders confirming non-disposal of their shares have been extended until July 2023.
- Extension to 21st October 2022 of Amati Global Investors Limited`s right to subscribe to 6,578,947 additional ordinary shares in the Company at 19 pence per share with total value of £1,250,000.
Tony Crawley, Chief Executive of Zenova Group PLC commented: “Zenova has made strategic progress over the last six months which lays the foundations for significant growth going forward. The Group is well funded with rigorous cost controls in place to manage the expansion of the business. We look forward to announcing further positive news in the near future.”
Zenova has made encouraging progress in this interim period in what has been a challenging trading environment for business generally. Strategic developments over the last six months have laid the foundation for a positive future. The company remains in good financial health, implementing a program of rigorous control of costs, as we grow the business in a managed and sustained manner.
Since our last report, the focus has been on product development, testing and certification to meet the most recent fire safety regulations implemented in the UK, which are amongst most stringent in the world today. Significant investment is being made in accessing global markets.
We believe our products are best in class. As such a key focus at this time is one of communication as we pursue market penetration. We have engaged in a number of activities to develop brand recognition which we believe will help boost future growth potential.
Despite a global pandemic and the war in the Ukraine, resulting in global supply chain disruption, energy cost inflation and shipping delay issues affecting Zenova in common with many sectors, the company is gaining strength. Progress is positive across its product range, including those still in development. Our outsourced manufacturing capabilities are primed and ready to ramp up levels of production to support future growth of the business.
A number of sub distribution partners have now been appointed with further partners identified both in the UK and overseas and we have chosen several new specialised partners in key sectors. Zenova has secured new contracts in a number of targeted markets, domestically and internationally, with products being specified. This is encouraging progress. Successful trials and pilots have allowed the company to penetrate many key sectors.
With the recent global energy crisis Zenova IP and IR products are now even more relevant in supporting businesses and homes in conserving energy and reducing their carbon footprint. As revenue streams grow, we will continue to implement strict cost management policies to ensure that the Company remains in a healthy working capital position.
I would like to thank all our employees and partners for their hard work over the last six months. They have embraced our vision to establish Zenova as a trusted supplier of effective and commercially viable products that provide innovative fire safety and heat management solutions. We are most grateful for their support and dedication and look forward to announcing further progress in the near future.
The key sectors currently being targeted by the Company’s sales and marketing team are as follows:
- Social Housing Government – grant led
- Local Authorities
- Film & TV
- Fire services
- Modular Homes
KEY CONTRACTS & CLIENTS
The company has secured a number of cornerstone agreements within key sectors which are expected to develop into longer term sales from these partnerships
- Beyond Surface Solutions Ltd is a specialist within the Marine and Automobile sectors with stock now purchased of FP,IP,IR and Primer and in place. A number of key trials are now underway with the motor industry for both FP and IP products to assist with fire protection and insulation respectively. Beyond Surface Solutions has now placed their first order and the company anticipates increasing continuous sales into the future.
- Saudi Arabia sub distributor Ethmaar Investment Company has been appointed as a subdistributor of products FP, IP, IR and Primer. Once the company has completed final Government
checks an expected first order will be placed in Q4 2022
- Omnis is now a Sub distributor within the construction sector in the USA for products FP, IP, IR and Primer. Omnis has begun the task of building brand awareness in the USA with a number of trade show events completed with some significant interest.
- SIG Plc has purchased and stocked Zenova FP, Zenova IP, Zenova IR and Primer products, which are now available to their large customer base.
- It is expected that the Zenova IR specification for KC Cabins will contribute to a significant near term cash inflow for the Group.
- Zenova products used successfully on Pinewood Studios special effects live burn sets for big budget productions, saving time and money for the production with added environmental benefits and additional safety on the film sets and barrier protection between studio buildings.
- NHS Epsom and St Helier University Hospitals Trust is testing Zenova IP and Zenova IR products on hospital sites with ‘side-by-side’ comparison analysis to be independently verified.
- During the interim period Dorset & Wiltshire Fire & Rescue Service has successfully concluded tests of Zenova FP in ‘real-world’ kitchen fire demonstrations.
- Intertek has recently conducted testing that confirms sizeable heat build-up reduction on steel surfaces using Zenova IP and Zenova IR.
- Zenova products have recently undergone fire investigation demonstrations for experts from the insurance sector, fire & rescue services and police services by Gardiner Associates Training and Research.
Scalable manufacturing partners put in place to help ensure the supply of all Zenova products an satisfy the expected growth in demand for products across multiple geographies.
During the period the Company completed the testing on Zenova WB, a wildfire barrier fluid (applied via spray wands or aerial drops), which provides a virtual barrier where fire simply will not burn. Repeated tests on a variety of dry wildfire fuels (grasses, hays, brush) demonstrates the substantial fire resistance Zenova WB provides, while remaining viable after application for 30+ days in dry conditions.
By creating an effective fire stop, ZENOVA WB provides essential property and personal protection for dwellings, buildings, people or wildlife that find themselves in harm’s way when these devastating fires occur.
Zenova fire extinguishers which utilise its unique fluid which is capable of extinguishing all types of fires and is much more effective than existing fire extinguishing methods, such as water, powder or foam have been subject to extensive tests. This product, once fully certificated to the latest standard of EN3 certification, will come to market before the end of 2022.
Further testing is ongoing for products to ensure we continue to satisfy various sector regulations and legislation.
Amati Global Investors Limited has extended its right to subscribe to 6,578,947 additional ordinary shares in the Company at 19 pence per share with total value of £1,250,000 substantially adding to its stake.
Lock-In agreements entered into by Directors and founders confirming non-disposal of their shares have been extended until July 2023.
The company has made good progress launching to market a number of products within a very difficult global year for many. With many new building regulations and Brexit changes to products legislation which Zenova has kept abreast of and moved quickly to adopt the necessary legislation requirements, allowing us now to expand into a specification market. We believe with current fire regulation changes and the energy crisis Zenova products are now positioned to capitalize on the market’s needs for the future.
For further information:
|Zenova Group PLC|
|Tony Crawley, Chief Executive Officer
Don Nicolson, Non-Executive Chairman
|Via Orana Corporate LLP:
Tel: +44 20 3475 6834
|SPARK Advisory Partners Limited (Nominated Adviser)|
|Matt Davis / Adam Dawes||Tel: +44 20 3368 3550|
|SI Capital Limited (Broker)|
|Nick Emerson||Tel: +44 1483 413 500|
Notes to editors:
The Group, through Zenova Ltd, is the holder of intellectual property that underpins a suite of fire safety and temperature management products and technology. The product range is applicable to industrial, commercial, and residential markets. The Group’s products include fire retardant paints, insulating paints and render, fire extinguishing fluid and applications. Through innovative development, and a refined formulation and development process, Zenova provides industry leading solutions across a range of fire protection and temperature management problems, comprising:
Thermal insulating paint that creates a thermal barrier, provides thermal reflection of sunrays & infrared radiation, anti-condensation and anti-mould properties. It can be applied to virtually any exterior or interior material, regardless of the surface.
Thermal insulating render to enhance the effectiveness of insulation by creating a thermo shield. It fills all cavities and gaps regardless of geometric shape and creates a vacuum – the most effective insulator.
The Group has achieved this without compromising the sustainability of natural and economical resources, including personal health and safety, with ecologically sound products.