ENTEQ TECHNOLOGIES PLC

ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2022

REGISTERED NUMBER: 07590845 (England and Wales)

Contents

Page

Key features, Financial Metrics and Outlook

2

Company Information

4

Strategic Report:

Combined Chief Executive and Chairman's report

5

Financial Review

8

Review of Principal Risks and Uncertainties

11

Corporate Governance:

Environmental, Social, and Governance report

14

Report of the Directors

16

Remuneration Committee Report

19

Corporate Governance Report

22

Financial Statements - Group:

Independent Auditor's Report

27

Consolidated Income Statement

34

Consolidated Statement of Financial Position

35

Consolidated Statement of Changes in Equity

36

Consolidated Statement of Cash Flows

37

Notes to the Consolidated Financial Statements

38

Financial Statements - Company:

Company Statement of Financial Position

63

Company Statement of Changes in Equity

64

Notes to the Company Financial Statements

65

- 69

1

Key features, Financial Metrics and Outlook

Key features

  • Total revenue up from $5.1m to $7.3m due to strengthening North American market, offsetting reduced activity in China:
    o North America revenue up from $1.9m to $6.2m
    1. International revenue down from $3.2m to $1.1m
  • Adjusted EBITDA2 up from $0.1m to $0.3m
  • Gross profit margin down from 53% to 36% due to change in product mix from new strategic distribution partnerships
  • Administrative expenses before amortisation reduced from $3.9m to $3.2m:
    1. Underlying overheads1 reduced from $2.6m to $2.3m
  1. Depreciation on rental fleet down from $0.9m to $0.5m
    1. Depreciation on other fixed assets steady at $0.2m
  • Loss attributable to shareholders reduced from $1.1m to $0.8m
  • The SABER project has progressed well:
    1. Key test objectives achieved
  1. Extensive industry and customer engagement has demonstrated market potential

Financial metrics

Years ended 31 March ($m):

2022

2021

•

Revenue

7.3

5.1

•

Gross profit margin

36%

53%

•

Underlying overheads1

2.3

2.6

•

Adjusted EBITDA2

0.3

0.1

•

Exceptional items

-

0.1

• Total post tax loss

0.8

1.1

• Post tax loss per share (cents)

1.1

1.7

•

Cash balance3

4.8

8.1

• Investment in engineering projects

2.7

1.6

Outlook

  • Continued US rig count growth gives optimism regarding US market
  • Focus on international opportunities as markets recover
  • Ongoing investment in the development and deployment of new market-led technologies
  • Emphasis on maintaining a strong balance sheet

2

1 The reconciliation between Underlying overheads and Administrative expenses before amortisation is follows:

Year to 31 March 2022

Year to 31 March 2021

$m

$m

Total underlying overheads

2.3

2.6

Depreciation - fixed assets

0.2

0.2

Depreciation - rental fleet

0.5

0.9

PSP Share charge

0.2

0.2

Administrative expenses before amortisation (including bad debt charge)

3.2

3.9

2 The reconciliation between Loss attributable to shareholders and Adjusted EBITDA is follows:

Year to 31 March 2022

Year to 31 March 2021

$m

$m

Loss attributable to shareholders

(0.8)

(1.1)

Exceptional items

-

0.1

Amortisation

0.2

-

Depreciation - fixed assets

0.2

0.2

Depreciation - rental fleet

0.5

0.9

PSP Share charge

0.2

0.2

Interest

-

(0.1)

Adjusted EBITDA

0.3

0.1

Both the above alternative performance measures are shown as the Board consider these to be key to the management as the business as a whole.

3 The cash balance includes::

Year to 31 March 2022

$m

Cash and cash equivalents

3.3

Bank deposits

1.5

Cash balance

4.8

Year to 31 March 2021 $m

8.1

-

8.1

3

Company Information

For the year to 31 March 2022

DIRECTORS:

Chairman

Martin Perry

Executive Directors

Andrew Law

Chief Executive Officer

David Steel

Chief Finance Officer

Non-Executive Director

Neil Hartley

Chairman of the Remuneration and Audit Committees

Iain Paterson

Chairman of Nomination Committee

SECRETARY

David Steel

REGISTERED OFFICE

The Courtyard

High Street

Ascot

Berkshire

SL5 7HP

REGISTERED NUMBER

07590845 (England and Wales)

AUDITORS

BDO LLP

Registered Auditors

55 Baker St,

Marylebone, London W1U 7EU

NOMINATED ADVISER & BROKER finnCap

1 Bartholomew Close

London

EC1A 7BL

LEGAL ADVISORS

CMS Cameron McKenna Nabarro Olswang LLP

Cannon Place

78 Cannon Street

London

EC4N 6AF

REGISTRARS

Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol BS99 6ZZ

4

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Enteq Upstream plc published this content on 06 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 July 2022 08:33:02 UTC.