Annual Results for the Period Ended 30 November 2021

Zenova Group PLC (AIM: ZED), a provider of innovative fire safety and heat management technology and products, today announces its results for the year ended 30 November 2021.

Highlights for the period

• Loss for the year of £1.1 million mainly arising from costs of research and development, testing and certification, staff costs, and professional fees as Zenova Group Plc establishes its position in the market.
• Zenova Group Plc was incorporated on 14 May 2021 and acquired the entire share capital of Zenova Limited on 20 May 2021.
• On 22 July 2021 Zenova Group Plc was admitted to AIM, in conjunction with raising £4.5 million before costs.
• In September 2021 Keswick Enterprises Group Ltd was appointed to distribute, warehouse, and provide logistics support for our innovative insulation products globally, and to provide a complete supply chain where required.
• Announcement of newly developed Zenova WB wildfire barrier fluid (WB) in October 2021.
• Major contract secured with Spark Global Australia Pty Ltd in Victoria, Australia, a newly formed affiliate of a major Australian construction company for the supply of Zenova products in Australia with a minimum commitment of £2 million each year. Products being supplied include Zenova IR thermal insulation render (IR), Zenova IP thermal insulation paint (IP) and Zenova FP fire protection paint (FP).
• Major contract secured with a Spanish company that has become an Authorised Distributor of Zenova products and will promote and sell them to its clients in Spain, Germany, Austria, and Switzerland. The Authorised Distributor is contracted to purchase a minimum value of €9.8 million of Zenova’s products over the next three years, with €1.8 million due in 2022.

Post period-end highlights

• Successful launch of 3 key products (all independently certified and validated) into the market: FP, IP and IR.
• Implementation of trials of IP and IR for Southdown Housing Association in East Sussex, with successful results which are independently verified by a third-party using infrared imagery testing.
• An agreement entered with Omnis Panels LLC to distribute Zenova products throughout the construction sector in the United States of America.
• Sales of IP, IR and FP made in the UK and Germany, with products shipped via Sub-Distributors appointed in these territories.
• Additional validation of WB and FP by Professor Claire Belcher and her team from the University of Exeter wildFIRE Lab, with further successful tests of FP conducted by the Dorset and Wiltshire Fire Service under the supervision of Professor Belcher and her team.
• Scalable manufacturing partners put in place to ensure the supply of all Zenova products can satisfy the expected growth in demand for products across multiple geographies.
• Trial agreed with the NHS Epsom and St Helier University Hospitals Trust for FP, IP and IR with ‘side-by-side’ comparison analysis to be independently verified.
• Further testing underway, including specific legislation tests for the use of FP on structural steel.

Outlook‍

During Zenova’s inaugural year as an AIM listed company it has made good progress. It has developed, manufactured, and is marketing and selling its first three products - Zenova FP fire protection paint, Zenova IP thermal insulation paint, and Zenova IR thermal insulation render, with three further products currently in the testing phase and expected to be brought to market later in 2022.

2022 will be a critical year for the Company but its client base is developing well and in line with current expectations. It is the Company’s objective to build on its positive momentum to date, including through the addition of its new products, with the aim of becoming cash flow positive, financially self-sustaining, and to be operating profitably by 2023.

The year is unlikely to be without operational and other challenges, but the Company believes that it is well placed to manage these and is confident of its potential to deliver significant returns to shareholders whilst also delivering safer and more carbon friendly environments to those customers utilising its unique range of products.

‍Tony Crawley, Chief Executive of Zenova Group PLC commented: “Since listing on AIM in July 2021, Zenova has made significant progress in the development of its products, in testing that meets the highest standards and latest building regulations, and in sales and marketing. We are experiencing significant global interest in our products, and we expect our order books to grow at an increasing rate over the next 12 months as we focus on delivering sales in our target markets. Later in 2022 we expect to launch three further products into our portfolio. They provide innovative solutions which are underpinned by extensive testing, and they will help address the ongoing global challenges surrounding heat management and fire safety. Our success to date is due in no small measure to the hard work and dedication of our employees and partners, who have embraced our vision to establish Zenova as a trusted supplier of effective and commercially viable heat management and fire safety products. I would like to thank them for their support and dedication, and I look forward to working with them as we help Zenova fulfil its potential over the coming year and beyond.”

‍For the full RNS news release, please click here