Investors

Publication of Annual Report

Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading global technology brands, announces its audited full year-results for the year ended 31 December 2023 (“FY23”) and that it has published its annual report which is available to view on the Company’s website - https://ir.sondrel.com/investors/results-reports-presentations.

 

 

Financial Review

• Revenue of £9.4 million (FY22: £17.3 million)
• Operating loss of £17.3 million (FY22: £5.2 million)
• Adjusted EBITDA of £4.5 million loss (FY22: £1.1 million loss)
• Net debt at year-end of £0.9 million (FY22: net cash of £3.7 million)

Operational Review

• Steady project progress during the first half of FY23. However, delays on the largest ASIC project and the lack of new contract wins in the second half resulted in a significant fall in revenue and tightening of cash position
• £2.7 million of revenue from largest ASIC project deferred from FY23 into FY24
• Two smaller ASIC projects achieved ‘tape out’ status during FY23, one of which led to Sondrel’s first production order in late 2023
• Joe Lopez, Group CFO, stood down in September 2023 and was replaced by Nick Stone as Interim CFO in a non-board capacity

Post Period End

• On 6 March 2024, the Company entered into an £874,600 secured 15% convertible loan note agreement with Rox Equity Partners Limited (“ROX”) to enable the Group to meet immediate working capital requirements
• The Company has since received a further £2 million from ROX on 28 March 2024 via a further convertible loan note under the same terms as the above and also a £5.6 million equity subscription completed on 14 June 2024.
• The Company agreed with ROX to enter into a transformation plan (the “Transformation Plan”) that has resulted in the following management and Board changes:
  • Graham Curren has transitioned from his role as Chief Executive Officer to Non-Executive Director;
  • Nigel Vaughan has retired from his position as Non-Executive Chairman;
  • David Mitchard was appointed as interim Chief Executive Officer on 28 March 2024, and subsequently Non-Executive Chairman on 18 June 2024. David will stand down as interim Chief Executive Officer from today, following the appointment of John Chubb as Chief Executive Officer, and will remain the Company’s Non-Executive Chairman; and
  • Miles Woodhouse has been appointed as Non-Executive Director.
• Under the Transformation Plan, the Company has also resolved to propose to cancel the admission of the Company’s ordinary shares to trading on AIM (the “Cancellation”). A circular will be sent to shareholders in due course together with a notice convening a general meeting of the Company during August 2024 to consider, inter alia, the Cancellation.

For further information:

 

Sondrel (Holdings) plc	Via Buchanan
John Chubb, CEO	Tel: +44 (0) 20 7466 5000
Nick Stone, Interim CFO
Cavendish Capital Markets Limited	Tel: +44 (0) 20 7220 0500
Ben Jeynes / Katy Birkin / George Lawson - Corporate Finance
Michael Johnson / Charlie Combe – Sales and ECM
Burson Buchanan	Tel: +44 (0) 20 7466 5000
Chris Lane Stephanie Whitmore	[email protected]
Jack Devoy
Abby Gilchrist