Included in cash and cash equivalents in the statements of financial position is £0.8 million (2022: £0.8 million) of encumbered deposits.

Notes to the Consolidated Interim Financial Statements

The unaudited condensed consolidated statement of financial position of SIMEC Atlantis Energy Limited (the "Company") and its subsidiaries (the "Group") as at 30 June 2023, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the Group for the six-month period then ended and certain explanatory notes (the "Consolidated Interim Financial Statements"), were approved by the Board of Directors for issue on the 26^th September 2023.

These notes form an integral part of the Consolidated Interim Financial Statements.

The Consolidated Interim Financial Statements do not comprise statutory accounts of the Group within the meaning in the provisions of the Singapore Companies Act, Chapter 50. The Group's statutory accounts for the year ended 31 December 2022 were prepared in accordance with Singapore Financial Reporting Standards (International) (SFRS(I)) and International Financial Reporting Standards (IFRS). SFRS(I)s are issued by the Accounting Standards Council Singapore, which comprise standards and interpretations that are equivalent to IFRS issued by the International Accounting Standards Board. All references to SFRS(I)s and IFRSs are subsequently referred to as IFRS in these financial statements unless otherwise specified.

The Group's statutory accounts for the year ended 31 December 2022 were approved by the Board of Directors on 25 July 2022.

1    Domicile and activities

The Company is a company incorporated in Singapore. The Company's registered office address is c/o Level 4, 21 Merchant Road, #04-01, Singapore 058267. The principal place of business is 26 Dublin Street, Edinburgh, EH3 6NN, United Kingdom.

The principal activity of the Group is to develop and operate as a global sustainable energy provider. The Group holds equity positions in the world's flagship tidal stream project, MeyGen, and the Uskmouth power station site, that is being repurposed into a Sustainable Energy Park initially housing battery energy storage projects.

2    Significant accounting policies

Basis of preparation

The Consolidated Interim Financial Statements have been prepared in accordance with the AIM Rules for Companies and are therefore not required to comply with International Accounting Standard 34 Interim Financial Reporting to maintain compliance with IFRS.  In all other respects, the financial statements are drawn up in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 31 December 2022.

The Consolidated Interim Financial Statements, which do not include the full disclosures of the type normally included in a complete set of financial statements, are to be read in conjunction with the last issued consolidated financial statements of the Group as at and for the year ended 31 December 2022.

Accounting policies

The accounting policies and method of computation used in the Consolidated Interim Financial Statements are consistent with those applied in the last issued consolidated financial statements of the Group for the year ended 31 December 2022.

3    Critical accounting judgements and key sources of estimation uncertainty

In preparing this set of Consolidated Interim Financial Statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2022.

4    Going concern basis

In adopting the going concern basis for preparing the Interim Financial Statements, the Board has considered the Group's business activities, together with factors likely to affect its future development, its performance and principal risks and uncertainties. The Board has undertaken the assessment of the going concern assumptions using financial forecasts for the period to 31 December 2024.

Management has prepared a forecast through to 31 December 2024 based on contractually committed revenues and costs, an estimate of additional costs required and the income arising from development projects that are expected to be delivered within the forecast period.

The Directors' assessment of the appropriate use of the going concern basis included the following factors:

·   Repayment of the Abundance bond principals falling due in March 2024, June 2024 and September 2024. The Company may either seek to repay the bonds, extend the repayment date of the bonds or refinance the bonds with new debt.

·   Timing of the potential repayment of historical grant funding of an amount of £3.4 million as reported in the consolidated financial statements for the year ended 31 December 2022. The Board are of the view that there are grounds for disputing any clawback of this grant and

the Company has evidence to support this position.

The Board has identified significant factors that are of a material amount as outlined above, and the Board has identified sufficient evidence of success that includes achievable new sources of revenue that mitigate against the existence of material uncertainties about the Group's ability to continue as a going concern. The evidence is summarised as follows:

·   Monetising the rental income from the first battery energy storage system lease at Uskmouth

·   Sale of a ready to build site for a 120MW battery energy storage system at Uskmouth, with a targeted completion date in 2024.

Accordingly, the Board of Directors concluded that it is appropriate to adopt the going concern basis of accounting in preparing the Interim Financial Statements.

5    Other notes

In respect of the six months to 30 June 2023, the diluted earnings per share is calculated on a profit attributable to owners of the Company of £5.3 million on the weighted average of 722,812,335 ordinary shares (30 June 2022: loss of £7.9 million and basic weighted average shares of 722,812,335). Share options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive. No dividend has been declared (2022: nil).

6    Events after the reporting date

As announced on 8 September 2023, the Group secured a Contract for Difference (CfD) allocation from the UK Government guaranteeing £198/MWh for 15 years for 22MW of clean, predictable power from the MeyGen site.

For further information, please contact:

 Notes to Editors

SAE is a global developer, owner and operator of sustainable energy projects. SAE owns the world's flagship tidal stream project, MeyGen. SAE is also the owner of the Uskmouth Power Station site that is being repurposed into a sustainable energy park, initially housing one of the UK's largest battery energy storage projects.

https://www.saerenewables.com/