Zenova Group Plc - Annual Report and Financial Statements 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 ("MAR") WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN
Annual Results for the period ended 30 November 2023
Zenova Group PLC (AIM: ZED), the innovative fire suppression and interdiction company, today announces its results for the year ended 30 November 2023. In addition, the Company gives notices of its annual general meeting ("AGM") and the publication of its annual report and accounts.
Highlights For The Year Ended 2023
· Sales of £278k for the year ended 30 November 2023 (2022 - £175k), an increase of 59% over the prior year of £175k. Sales were impacted by delays in gaining key product certifications required to enter strategic market segments. These issues have now all been resolved and the Company anticipates significant revenue growth in the near term.
· Loss after taxation for the year of £1,687k, a decrease of 17% from the prior year (2022 - 2,032k) mainly arising from R&D tax credits, costs of research and development, testing and certification, staff costs, and professional fees.
· Multiple, significant testing and certification commendations including BRE steel testing confirming the effectiveness of Zenova FP fire retardant paint, Liverpool John Moores University validation for the Zenova IP thermal insulation paint, certification (Classes A, B, F and Electrical) for the FX500 aerosol fire extinguishers to BS6165 fire standard, and European EN3-7 testing and certification for the Company's larger FX 6L and 9L extinguishers confirming Classes A, B, and F, as well as Electrical classification.
· Successful launch of all major Zenova products from the FP fire retardant coatings, IP insulation coating and IR insulation render comprising its paint-related offering, to its extinguisher suite of products which include the smaller FX500 aerosol, and the larger 6 and 9 Litre all-in-one extinguishers, all of which are effective on all types of fire, as well as the FX fluid, a certified extinguishing agent for any type of fire and finally, the WB, eco-friendly, nontoxic wildfire barrier.
· Sales prospects enhanced significantly through concentrating on direct B2B accounts across multiple sectors and through appointing sub-distributors and sales agents both in the UK and internationally. Several of the latter agreements include annual minimum purchase quantities by value guarantees in order to maintain Zenova product exclusivity.
· New customers and leading distributors engaged in fiscal year 2023 included Dulux, Rawlins Paints, Kensington and Chelsea local authority, Melin Homes, Pinewood Studios, the NHS, Enfield City Council, Together Housing, Southdown Housing Association, Ukraine Military, Omnis (USA), Zensafe Ltd and Clastrom (Germany).
· Sales prospects were further enhanced through a successful demonstration of the leading-edge capabilities of Zenova's entire FX range of extinguishers to leading UK Government officials and Fire Industry Experts at the Fire Service College, Moreton-in-Marsh, in November 2023.
· Zenova strengthened its supply chain by signing manufacturing partners across the UK, Europe, and North America for all Zenova products, improving our preparedness to meet the demands of growing order book projections.
· Board realigned and strengthened through the elevation of Fiona Rodford to Executive Vice-Chairperson, with Don Nicolson reverting back to the role of Non-Executive Chairman. Thomas Melchior was appointed Interim Chief Executive Officer, with Tony Crawley assuming the non-board role of Sales Project Director, while Farakh Farid was appointed to the non-board role of Chief Financial Officer.
· In May 2023, the Company successfully raised gross proceeds of £500,000 through a placing at 4 pence per share. In addition, participating investors were granted a warrant carrying an exercise price of 10 pence per share and expiring three years from the date of issue.
Post Year End Highlights
· Zenova expanded and deepened its partnership with Gracewood/Drips and Sparks/Zensafe with a £2.4 million order over two years for FP paint. (April 2024). Early returns from this order are beginning to be realised as the construction season gets underway.
· The Zenova FX extinguisher range earned further major accreditations, notably the UK Kitemark, and MED (Marine Equipment Directive) certifications, both in 2024, establishing the Zenova extinguishers as the premier certified choice for comprehensive fire protection across any fire type.
· Zenova expanded its efforts to bring its products closer to international customers through successful client demonstrations in Mallorca, Spain (March 2024) and Albania (May 2024).
· Zenova global sales footprint expanded to Latin America (2024), India (2024) and Romania (2024).
· Fiona Rodford assumed the role of Non-Executive Chair of the Company, replacing Don Nicolson. (March 2024).
· To fund its growth efforts, Zenova successfully raised gross proceeds of £677,500 through a subscription, earmarked to strengthening working capital. (March 2024).
· Zenova appointed a new broker, Peterhouse Capital, and a new auditor, Gravita. (April 2024).
· Zenova discontinued director working capital loan facility of £350,000 (May 2024).
Outlook
We foresee the promising convergence of positive macro tailwinds in the fire interdiction markets, continued, recognised certification separation between the Zenova product range and the competition, and further exploitation of the Group's growing distributor relationships, which will drive accelerating sales growth for Zenova through the rest of 2024 and beyond.
Thomas Melchior, Chief Executive of Zenova Group PLC commented: "It has been another challenging year for Zenova as delays to product certifications slowed somewhat the rollout of our B2B strategy internationally. These issues are now largely behind us as the recent Drips and Sparks/Gracewood/Zensafe multi-year, multi-million-pound order demonstrates. We are entering 2024 focused on execution: delivering on existing business, opening new markets and client relationships, and serving our growing customer base as they upgrade their fire protection and thermal insulation needs."
Notice of AGM and Publication of Annual Report
The Company gives notice that its AGM will be held at 10.00am BST on 2nd July 2024 at the offices of Zenova Group Plc, 172 Arlington Road, London NW1 7HL.
The Notice of AGM, along with the Company's annual report and accounts for the year ended 30 November 2023 (together, the "Documents"), have been published on the Company's website at: https://zenovagroup.com/reports-documents/. The Documents, along with a form of proxy, will be posted to those shareholders who have elected to receive physical copies today.
For further information please contact:
Zenova Group PLC
Thomas Melchior, Chief Executive Officer
Fiona Rodford, Chair
Via Orana Corporate LLP:
Anthony Eastman
Tel: +44 20 3475 6834
SPARK Advisory Partners Limited (Nominated Adviser)
Matt Davis / Adam Dawes
Tel: +44 20 3368 3550
Peterhouse Capital Limited (Broker)
Charles Goodfellow / Rose Greensmith
Tel: +44 207 469 0930