SulNOx Group PLC - Trading Update & Patent Grant

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310

31 July 2024

SulNOx Group Plc (the "Company" or "SulNOx")

Trading Update: Record sales volumes, up 32% on record Q4.

New Patent Granted for Singapore

(Aquis Stock Exchange: SNOX)

SulNOx, the Greentech innovation company helping industry reduce emissions, lower fuel costs and meet sustainability targets, is pleased to announce its first quarter trading update and that it has secured a further significant patent in Singapore.

Q1 2024 Trading Update (1 April to 30 June)

·    Unaudited Q1 2024 revenues of £192k up 134% on Q1 2023 (£82k), second highest quarterly revenue following record Q4 2023.

·    Record quarter for product sales with total volume of product sold in the first quarter having increased 32% over Q4 2023 and trebled vs. the same period last year.  Revenues down on last quarter due to product promotion activity in relation to High Sulphur Fuel Oil (HSFO) and biofuels.

·    Product promotions secured first SulNOx product sales for use in HSFO and vessels using biofuels. HSFO represents c.25% of world bunker demand and biofuels are becoming increasingly important as shipping regulations become more stringent and emissions focussed.

·    Shipping Update: Maritime sector interest in Q1 continued to grow rapidly. New vessels using our products include container and cruise ships, both consuming significant quantities of fuel. Today, 35 shipping companies are evaluating the product or expanding its use across their combined fleet size of c.4,500 vessels. The pipeline remains very strong with 51 (Q4 c.45) additional shipping companies in discussion to begin evaluations, which we expect to convert to revenue in the coming quarters.

·    New stock locations: Houston and Singapore established in response to client demand.

·    Patent update: Application for "Fuel Oil Reclamation" has entered the National Phase in >70 countries. This opens up the c. $2bn market for SulNOx.  Further patent applications for the SulNOx emulsifier are in process.

·    Recruitment efforts continue with new hires planned to continue sales growth in Marine and Inland sectors.

·    Investor Relations: specialist investor relations advisory business Capital Access Group engaged to connect SulNOx with new investors, including private client fund managers, smaller institutions and regional pension funds.

·    Unaudited Q1 2024 cash balance of £1.598 million vs. £0.839k prior year.

Radu Florescu, Chairman of SulNOx Group commented, "Whilst Q1 has delivered encouraging revenues and record sales volumes, most significant is SulNOx demonstrating that it can provide a fuel and emissions reduction solution for users of HSFO and biofuels - opening up significant new marine opportunities. Q2 already shows considerable further potential in Africa, and further revenues expected from some very promising R&D results and strategic partnerships. SulNOx is also making several new hires to grow sales in line with ambitions"

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