CLEAN INDUSTRY SOLUTIONS HOLDING EUROPE AB Interim Report Q1/2024
Prepared by
Clean Industry Solutions Holding Europe AB
www.cleanindustrysolutions.com
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Adobe Stock ©Jon Anders Wiken
Table of Contents | ||
Q1 Financial Review (Income/Balance/Change in Equity/Cash-Flow) | ||
6 | News after the Reporting Period | 12 |
7 | Updated List of Largest Shareholders | 12 |
8 | Updated Reporting Dates 2024 | 12 |
9 | Statement from the Board and Management | 13 |
10 | Other Information | 14 |
11 | Contact | 14 |
Statement by the Board of Directors
The Board of Directors provides their assurance, that the interim report provides a fair and true overview of the company's operation, financial position, and results.
Stockholm on May 17, 2024, Board of Directors
Finn Johnsson | Chairman of the Board |
Christian Zahler | Board member and CEO |
Markus Augustsson | Board member |
Rebecca Schwantes | Board member |
Marie-Louise Olsson Dawwas | Board member |
Korbinian Kramer | Board member |
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1 Summary of the Q1 Report
Q1 from 01.01.2024 to 31.03.2024 (01.01.2023 to 31.03.2023)
CISH AB Group | 2024 | 2023 | Diff. in | 2023 | ||||
RESULTS IN BRIEF | in TSEK | Q1 | Q1 | % | FY | ||||
Sales | 138 | 3,094 | -95.6 | 12,924 | ||||
Increase in finished goods, inventories and wi | 0 | 0 | - | 5,652 | ||||
Other own work capitalized | 0 | 0 | - | 0 | ||||
Income | 138 | 3,094 | -95.6 | 18,575 | ||||
Other operating income | 79 | 546 | -85.5 | 9,515 | ||||
Income from shares in group companies | 0 | 0 | - | 808 | ||||
Operating Income | 217 | 3,641 | -94.0 | 28,899 | ||||
Cost of Sales | -220 | -2,052 | -89.3 | -10,908 | ||||
Personnel Costs | -1,137 | -6,438 | -82.3 | -22,311 | ||||
Other external expenses | -827 | 0 | - | -7,774 | ||||
Other operating expenses | -3 | -4 | -15.3 | -55 | ||||
Depreciation | -202 | -236 | -14.2 | -967 | ||||
Operating Expenses (w/o CoS) | -2,169 | -6,678 | -67.5 | -31,107 | ||||
Operating result (EBIT) | -2,173 | 0 | - | -13,116 | ||||
Financial result | 0 | 0 | - | 0 | ||||
Profit (+) / loss (-) after financial items | -2,173 | 0 | - | -13,116 | ||||
Taxes | 0 | 0 | - | -2 | ||||
Profit (+) / loss (-) after taxes | -2,173 | 0 | - | -13,118 | ||||
Number of Shares | 60,597,762 | 25,497,762 | +137.7 | 25,497,762 | ||||
Result per share amounted (in SEK) | -0.0359 | 0.0000 | - | -0,5145 | ||||
Number of Shares after dilution | 60,597,762 | 25,497,762 | +137.7 | 25,497,762 | ||||
Result per share amounted (in SEK) | -0.0359 | 0.0000 | - | -0,5145 | ||||
Average Number of outstanding Shares | 60,597,762 | 25,497,762 | +137.7 | 25,497,762 | ||||
Result per share amounted (in SEK) | -0.0359 | 0.0000 | - | -0,5145 | ||||
Cash available end of period | 6,155 | 11,640 | -47.1 | 11,640 | ||||
CISH AB Group | 2024 | 2023 | Diff. in | 2023 | ||||
RESULTS IN BRIEF | in TSEK | % | FY | ||||||
Operating Income | 217 | 3,641 | -94.0 | 28,899 | ||||
Operating Expenses (w/o CoS) | -2,169 | -6,678 | -67.5 | -31,107 | ||||
Operating result (EBIT) | -2,173 | 0 | - | -13,116 | ||||
Profit (+) / loss (-) after taxes | -2,173 | 0 | - | -13,118 |
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2 Note from the CEO
As already communicated in the Annual Report 2023, Industrial Solar GmbH ceased its operations end of February this year due to insolvency.
SolarSpring GmbH continued the development of specialized components for industrial applications, more specifically chemically resistant membrane materials, within the SuperClean project. This project has already brought forth some very promising new modified materials which are expected to decrease operating costs in membrane distillation applications with acids or saline effluents.
Activities on site in Erbach continued with the official start-up of the ROKKA pilot system, resulting in a first testing campaign for the removal of ammonia from the municipal wastewater for conversion to fertilizer. Further testing is planned in Q2, followed by the final analysis and report to be issued in Q3 of this year. The results will be presented in several public events, involving relevant stakeholders and interested parties.
The insolvency of Industrial Solar was a bitter setback, but we are glad that SolarSpring carries on and is able to contribute to prestigious research projects with their knowledge and expertise and is able to make an important contribution to a sustainable circular economy with their technology.
Christian Zahler
CEO Clean Industry Solutions Holding Europe AB
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3 Main Activities in Q1
Clean Industry Solutions announces the termination of the liquidity provider agreement
Clean Industry Solutions Holding Europe AB (publ.) has terminated the agreement entered into on 2 February 2022 with Lago Kapital Ltd. on the assignment as a liquidity provider. The last day of the provision of liquidity support by Lago was 31 December 2023.
Clean Industry Solutions Holding Europe AB's subsidiary Industrial Solar GmbH will cease operations by the end of February
As announced in the press release dated 3 December 2023 and further explained in the press release dated 6 December 2023, CISH Holding's wholly owned German subsidiary Industrial Solar GmbH had to file for insolvency due to balance sheet over-indebtedness and the prognosis for the continuation of the company.
On 8 December 2023, the local court of Freiburg appointed a provisional insolvency trustee for Industrial Solar GmbH. In the first meeting with the insolvency trustee, the management and the employees of Industrial Solar GmbH on 13 December 2023, it was explained that operations should continue as usual until the end of the preliminary insolvency proceedings at the end of January.
Furthermore, the trustee agreed to continue operations in February - after the opening of the insolvency proceedings - mainly in order to finish the installation of the PV system at Losan Pharma - Industrial Solar's largest PV installation to date - as quickly as possible with the aim of invoicing a larger amount upon completion of the construction site and thus causing an inflow of more than 250 k€ to Industrial Solar GmbH.
The management reached out to potential investors to finance a transferring restructuring of Industrial Solar GmbH. Unfortunately, no investor has been found to date.
On the recommendation of the provisional insolvency trustee, dismissal letters will be sent to all employees in Industrial Solar GmbH before the end of January, and operations in Industrial Solar GmbH will cease at the end of February.
As stated in the press release from 6 December 2023, SolarSpring continues to operate business as usual and is currently facing increasing interest in membrane distillation pilot systems from a variety of industries. Driven by increasing costs for many key resources and materials due to ongoing global power shifts benefiting eastern countries, an awareness of the importance of resources recovery and reuse is gradually establishing itself as a mainstream consensus.
Besides high-purity water production for hydrogen electrolysers, the removal of ammonia from wastewater for further use and the volume reduction of highly saline effluents are the most commonly requested applications.
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SolarSpring receives EU LIFE programme grant award for R&D project
SALTEAU
A grant of 351.800 € was awarded to SolarSpring GmbH by the European Commission for the upcoming participation in the project SALTEAU, which consists of six European partners. The general aim of SALTEAU is to create new and updated multipurpose infrastructures with revolutionary capabilities to gain value from alternative water resources. The project is expected to start in Q2 of 2024 and will last four years.
Clean Industry Solutions announces the dismissal of the management of Industrial Solar by the insolvency trustee
The insolvency trustee of Industrial Solar GmbH, a subsidiary of Clean Industry Solutions Holding Europe AB (CISH AB) (publ.), has dismissed the two managing directors of Industrial Solar GmbH, Jochen Lachnit (Commercial Managing Director) and Christian Zahler (Technical Managing Director) with notice to the end of May.
Due to the insolvency of Industrial Solar GmbH, Jochen Lachnit and Christian Zahler will be dismissed from their positions as Managing Directors at the subsidiary with effect from 31 May 2024. However, both of them are committed to holding their management positions as CFO and CEO at CISH AB.
4 Outlook, Risk and Uncertainties
Projects
SolarSpring has currently four ongoing nationally funded R&D projects, namely HaSiMem, SERPIC, RoKKa, and BEFuel and the three EU-funded projects MELoDIZER, SuperClean, and SaltEau with a total funding value of about 1.8 m€.
Due to the increasing pressure on water intensive industries to find new technical solutions suitable for improving the environmental sustainability and cost efficiency of their processes, the outlook for wastewater treatment systems remains positive. Short-term delays in decision-making must be expected but might be compensated by a V-shaped dynamic once governmental support programmes are activated.
Risk and Uncertainties
The risks are mainly related to the global economic situation. While rising fossil fuel costs have encouraged companies to invest in sustainable solutions, they also contribute to higher commodity prices. Dealing with the Covid crisis in Southeast Asia and the war in Ukraine has put pressure on traditional supply channels, not only for semiconductors, but also for all low-value-added components manufactured in China, Russia, and Ukraine. The slowdown in economic growth also affects industry, the main customer of the Clean Industrial Solutions subsidiary.
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Generally speaking, inflation is a source of anxiety for investors. This climate of anxiety is reinforced by the uncertainty as to the response of the central banks and the markets to this inflation. However, an increase in key interest rates is inevitable, and even if this increase has begun, it will become more pronounced in the coming months, if only in the context of a global recovery when the aforementioned crises have subsided. The period of easy financing seems to be over and the increase in key rates will negatively impact the investment needs of industries. It would make sense for these industries to invest now but hopes for improved investment timing are prompting companies to take a wait-and-see approach, impacting the overall economic situation.
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5 Q1 Financial Review (Income/Balance/Change in Equity/Cash-Flow)
Comments to the Financials:
The numbers are consolidated from Clean Industry Solutions Holding Europe AB/Sweden and SolarSpring GmbH (a 100% subsidiary), for 2023 also from Industrial Solar GmbH (due to its insolvency in December 2023 no longer part of the consolidation).
Excluding Industrial Solar GmbH, income falls by -94% compared to last year: Working capital was 5.6 mSEK as of March 31, 2024, and will last for at least six more months.
Consolidated Income Statement
CISH AB Group | 2024 | 2023 | Diff. | 2023 | |||
INCOME STATEMENT | in TSEK | Q1 | Q1 | in % | FY | |||
Sales | 138 | 3,094 | -95.6 | 12,924 | |||
Increase in finished goods, inventories and | 0 | 0 | - | 5,652 | |||
Income from shares in group companies | 0 | 0 | - | 808 | |||
Income | 138 | 3,094 | -95.6 | 18,575 | |||
Other operating income | 79 | 546 | -85.5 | 9,515 | |||
Operating Income | 217 | 3,641 | -94.0 | 28,899 | |||
Cost of Sales | -220 | -2,052 | -89.3 | -10,908 | |||
Gross Margin | -4 | 1,588 | - | 17,991 | |||
Personnel Costs | -1,137 | -6,438 | -82.3 | -22,311 | |||
Other external expenses | -827 | -2,158 | -61.7 | -7,774 | |||
Other operating expenses | -3 | -4 | -15.3 | -55 | |||
Depreciation | -202 | -236 | -14.2 | -967 | |||
Operating Expenses (w/o CoS) | -2,169-8,836 | -75.4 | -31,107 | ||||
Operating result (EBIT) | -2,173-7,248 +70.0 | -13,116 | |||||
Financial result | 0 | -6 | - | 0 | |||
Profit (+) / loss (-) after financial items | -2,173 | -7,253 | +70.0 | -13,116 | |||
Taxes | 0 | -1 +100.0 | -2 | ||||
Profit (+) / loss (-) after taxes | -2,173 | -7,255 | +70.0 | -13,118 |
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Consolidated Balance Sheet
CISH AB Group | in TSEK | 31.03. | 31.03. | 31.12. | 31.03. | 31.03. | 31.12. | ||
ASSETS | 2024 | 2023 | 2023 | EQUITY AND LIABILITIES | 2024 | 2023 | 2023 | |
Other intangible assets | 5 | 135 | 172 | 142 | Share capital | 5,963 | 2,509 | 5,963 |
Goodwill | 6 | 315 | 631 | 394 | Unregistered share capital | 0 | 0 | 0 |
Intangible fixed assets | 450 | 803 | 536 | Total restricted equity | 5,963 | 2,509 | 5,963 | |
Tangible fixed assets | 7 | 2,206 | 2,825 | 2,283 | Share premium account | 71,203 | 64,413 | 71,203 |
Total fixed assets | 2,657 | 3,628 | 2,819 | Loss carried forward | -70,629 | -55,847 | -57,545 | |
Inventories | 704 | 5,135 | 693 | Profit(+)/loss(-) for the period | -2,173 | -7,255 | -13,118 | |
Trade receivables | -2 | 886 | 882 | Translation Difference | 242 | 2,273 | -385 | |
Accrued non-invoiced revenue | 0 | 0 | 0 | Total non-restricted equity | -1,357 | 3,585 | 154 | |
Other short-term receivables | 480 | 4,052 | 580 | Total equity | 4,606 | 6,094 | 6,117 | |
Deferred income | 289 | 1,401 | 533 | Liabilities to banks | 0 | 14 | 0 | |
Current receivables | 767 | 6,339 | 1,995 | Trade liabilities | 615 | 654 | 605 | |
Cash & Bank | 6,155 | 7,372 | 7,037 | Payments received | 62 | 5,012 | 61 | |
Total current assets | 7,625 | 18,846 | 9,725 | Other current liabilities | 1,059 | 1,972 | 1,062 | |
TOTAL ASSETS | 10,282 | 22,474 | 12,544 | Accrued expenses & def. income | 3,940 | 8,728 | 4,699 | |
Total liabilities | 5,676 | 16,380 | 6,426 | |||||
TOTAL EQUITY AND LIABILITIES | 10,282 | 22,474 | 12,544 |
Consolidated Change in Equity
CISH AB Group | 2024 | 2023 | ||||||
CHANGE IN EQUITY | Share | Premiu | Balanced | Total | Share | Premiu | Balanced | Total |
(in TSEK) | capital | m fund | result incl. | capital | m fund | result incl. | ||
result for | result for | |||||||
the year | the year | |||||||
Opening balance | 2,509 | 74,657 | -69,349 | 7,817 | 2,509 | 64,413 | -55,847 | 11,076 |
Unregistered share capital | ||||||||
Issue expenses | -3,796 | -3,796 | ||||||
Translation difference | 242 | 242 | -385 | -385 | ||||
Loss for the year | -2,173 | -2,173 | -13,118 | -13,118 | ||||
At the period end | 2,509 | 74,657 | -71,280 | 5,886 | 2,509 | 74,657 | -69,349 | 7,817 |
Consolidated Cash-Flow-Statement
CISH AB Group | in TSEK | 2024 | 2023 | 2023 | ||
CASH FLOW | 01-03 | 01-03 | FY | ||
Operating activities | |||||
Profit/loss after financial items | -2,173 | -7,255 | -13,118 | ||
Adjustments for items not included in cash flow | 861 | 2,507 | -450 | ||
Cash flow from operating activities before changes | -1,312 | -4,748 | -13,568 | ||
in working capital | |||||
Cash flow from changes in working capital | |||||
Change in inventories | -11 | -616 | 1,483 | ||
Change in operating receivables | 1,228 | 1,373 | -1,614 | ||
Change in operating liabilities | -750 | 85 | 793 | ||
Cash flow from changes in working capital | 468 | 0 | 0 | ||
Chash flow from operating activities | -844 | -3,906 | -12,906 | ||
Investing activities | |||||
Investments in tangible fixed assets | -38 | -361 | -530 | ||
Disposal of intangible assets | 0 | 0 | -1,411 | ||
Cash flow from investing activities | -38 | -361 | -1,941 | ||
Financing activities | |||||
New share issue | 0 | 0 | 14,040 | ||
Issue expenses | 0 | 0 | -3,796 | ||
Cash flow from financing activities | 0 | 0 | 10,244 | ||
Cash flow for the year | -882 | -4,267 | -4,603 | ||
Cash and cash equivalents begin of period | 7,037 | 11,640 | 11,640 | ||
Cash and equvalents end of period | 6,155 | 7,372 | 7,037 |
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Parent Company Income Statement
CISHE AB | in TSEK | 2024 | 2023 | 2023 | |||||
INCOME STATEMENT | Q1 | Q1 | FY | |||||
Other operating income | 369 | 299 | 1,621 | |||||
Operating Income | 369 | 299 | 1,621 | |||||
Personnel Costs | -241 | -205 | -1,360 | |||||
Other external expenses | -446 | -1,076 | -3,941 | |||||
Other operating expenses | -3 | -4 | -55 | |||||
Operating Costs | -691-1,285 | -5,356 | ||||||
Operating result (EBIT) | -322 | -986 | -3,735 | |||||
Write-downs of participations in subsidiaries | 0 | 0 | -19,249 | |||||
Other financial result | 0 | 0 | 13 | |||||
Financial result | 0 | 0 | -19,236 | |||||
Profit (+) / loss (-) after financial items | -322 | -986 | -22,971 | |||||
Taxes | 0 | 0 | 0 | |||||
Profit (+) / loss (-) after taxes | -322 | -986 | -22,971 | |||||
Parent Company Balance Sheet
CISHE AB | in TSEK | 31.03. | 31.03. | 31.12. | 31.03. | 31.03. | 31.12. | ||||||||||
ASSETS | 2024 | 2023 | 2023 | EQUITY AND LIABILITIES | 2024 | 2023 | 2023 | |||||||||
Financial assets | 5,436 | 20,888 | 5,436 | Share capital | 5,963 | 2,509 | 5,963 | |||||||||
Total fixed assets | 5,436 | 20,888 | 5,436 | Unregistered share capital | 0 | 0 | 0 | |||||||||
Loan to affiliated companies | 0 | 0 | 0 | Total restricted equity | 5,963 | 2,509 | 0 | |||||||||
Receivables from aff. comp. | 632 | 0 | 0 | Share premium account | 71,203 | 64,413 | 71,203 | |||||||||
Other short-term receivables | 35 | 106 | 323 | Loss carried forward | -66,681-43,710 | -43,710 | ||||||||||
Deferred income | 281 | 1,260 | 521 | Profit(+)/loss(-) for the period | -322 | -986 | -22,971 | |||||||||
Total current receivables | 949 | 1,366 | 844 | Total non-restricted equity | 4,200 | 19,716 | 4,522 | |||||||||
Cash & Bank | 5,945 | 2,882 | 6,757 | |||||||||||||
Total equity | 10,163 | 22,225 | 10,485 | |||||||||||||
Total current assets | 6,893 | 4,248 | 7,601 | Trade liabilities | 478 | 186 | 574 | |||||||||
Other current liabilities | 1,034 | 1,943 | 1,034 | |||||||||||||
TOTAL ASSETS | 12,330 | 25,136 | 13,037 | |||||||||||||
Accrued expenses & def. income | 656 | 782 | 945 | |||||||||||||
Total liabilities | 2,167 | 2,910 | 2,552 | |||||||||||||
TOTAL EQUITY AND LIABILITIES | 12,330 | 25,136 | 13,037 |
Parent Company Change in Equity
CISHE AB | 2024 | 2023 | ||||||
CHANGE IN EQUITY | Share | Premiu | Balanced | Total | Share | Premiu | Balanced | Total |
(in TSEK) | capital | m fund | result incl. | capital | m fund | result incl. | ||
result for | result for | |||||||
the year | the year | |||||||
Opening balance | 2,509 | 74,657 | -66,681 10,485 | 2,509 | 64,413 | -43,710 | 23,212 | |
New share issue | 14,040 | 14,040 | ||||||
Issue expenses | -3,796 | -3,796 | ||||||
Loss for the year | -322 | -322 | -22,971 | -22,971 | ||||
At the period end | 2,509 | 74,657 | -67,003 10,163 | 2,509 | 74,657 | -66,681 | 10,485 |
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Clean Industry Solutions Holding Europe AB published this content on 17 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2024 06:56:03 UTC.
