Deepverge PLC (AIM:DVRG) Trading Update

H1 unaudited revenues grew 95% to £6.47m (2021 H1: £3.32m)

Full-year revenues, weighted to H2, expected to exceed £18m

DeepVerge plc (AIM: DVRG), announces that t he Company’s unaudited revenues in H1 2022 grew by 95% to £6.47m (H1 2021: £3.32m). Orders to August of £8.87m are booked for delivery in H2 (H2 2021: £3.91m). The Board conservatively expects revenue to be in excess of £18m for the full year to 31 December 2022 , which is below current market expectations, leading to a smaller projected EBITDA figure, a modest reduction in gross margins and a slight increase in overheads.

Group

· H1 Group revenues up 95% to £6.47m (2021 H1: £3.32m)

· Orders up 128% for delivery in H2 exceed £8.87m (2021: £3.91m)

· Full year sales weighted to H2 are expected to exceed £18m (2021: £9.3m)

Modern Water

· £6.5m of orders secured to end of July, up 116% in one month (June 30 2022 RNS: £3m)

· In addition, multiple £1m+ installation bids remain outstanding for site installations

Labskin and Skin Trust Club

· £1m+ Skin Trust Club sales in H1

· 27,000 club members

· 42.5% with skin conditions

· 24 skin care clients joined the marketplace

· 300+ products added to marketplace

· 200+ products to be added shortly

· 84,000+ visits to site per month and growing

· 6% conversion rate to Skin Trust Club Membership

Recently, the Company has been remarkably successful in converting its significant prospect pipeline into firm orders, for delivery in 2022, as evidenced by £ 6.5m worth of deals in China, South Asia, India and Africa (RNS 30 June[i], 18 July[ii] and 1 August[iii]). However, there remains uncertainty as to whether the conversion rate, over the next few months, of prospects into orders for delivery this calendar year will meet previously expected levels.

Gerard Brandon, CEO DeepVerge plc, commented:

“H1 2022 has been another exceptional fast growth period for DeepVerge. Modern Water is in the right place at the right time, to deal with the global water crisis. Also, Skin Trust Club has hit a rich vein of consumer desire to take control by personalising the skin care industry which can be seen by the rush of skin care products being added to the Skin Trust Club marketplace, that only began in Q1 this year.

Although full year 2022 revenues might be lower than previously guided, sales and orders continue to rapidly expand across all divisions in the current macroeconomic and geopolitical environment. We have taken a prudent stance to guide the market on year-end revenue and will provide further updates as necessary.”

DeepVerge plc

Gerard Brandon, CEO

+44 (0) 7340 055 648


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