30 May 2024

Aurrigo International plc

Full year results for year ended 31 December 2023

and

Notice of Annual General Meeting

Continued good progress since IPO - foundations laid for future growth

Aurrigo International plc (AIM: AURR, the "Company" or "Aurrigo"), a leading international provider of smart airside solutions and automotive products, reports its full year results for the year ended 31 December 2023.

Highlights

•   The Group signed an agreement with International Airlines Group (IAG) to deploy Auto-Sim®and Auto-DollyTug®for automated baggage handling in the USA at Cincinnati / Northern Kentucky International Airport (CVG).

•   The Group signed an additional agreement with IAG to deploy Auto-Sim®and Auto-DollyTug®for automated baggage handling at a large UK Airport.

•   The Group announced a multi-year partnership agreement with Changi Airport Group (CAG) for the continued development of Aurrigo's automated smart airport solutions and the joint demonstration of these to other airports and stakeholders.

•   The Group announced a collaboration with UPS to develop and deploy a larger capacity cargo vehicle, Auto-Cargo®, at their East Midlands Airport hub, the UK's second largest cargo terminal.

•   The Group announced a contract with Stuttgart Airport and the Digital Testbed Cargo Project (DTAC) Consortium to trial Auto-DollyTug®to transport cargo from the terminal to the deck of the aircraft.

•   The Automotive division acquired GB Wiring Systems Limited. The acquisition delivered an established network of new customers which further diversified the division's customers base.

•   Headcount increased at all levels, expanding the team from 48 at IPO to 95 at year end.

•   The Group won 'Best Newcomer' award at the AIM awards 2023, highlighting our commitment to investing in reducing our carbon footprint and engaging in DEI initiatives, including internships and in-house mentoring.

•   The Group was awarded an 'A' rating for ESG following an independent assessment from Integrum ESG.

Outlook

•   Partnerships with some of the largest organisations in the aviation industry continue to drive the development of the Group's smart aviation solutions.

•   The Group is now transitioning from proving out concepts to deploying and demonstrating the solutions.

•   The Group is focused on developing scale in the manufacturing facility in Coventry (UK) and also investigating locations for additional capacity in the USA, Europe and Asia.

•   2024 will see our automated smart aviation solutions being used in key airport hubs around the world which the Board anticipates will translate into increasing revenue in 2025.

•   The Automotive division continues to grow organically in line with management expectations.

David Keene, CEO of Aurrigo, commented:

"I am very pleased with the significant progress the Group has made throughout 2023.  We have accelerated our partnership with Singapore Changi Airport Group and additionally won new customers internationally."

"Since joining AIM, only 15 months ago, we have scaled our teams, developed an advanced autonomous baggage handling vehicle from the ground up, deployed our airport simulation software package, and are now rapidly building a leadership position in Smart Aviation Solutions."

"A successful secondary fund raise in October has allowed us to lay the foundations for our future growth in 2024 and beyond."

For further enquires

About Aurrigo International plc

Aurrigo International plc is a leading international provider of smart airside solutions and automotive products.

Headquartered in Coventry in the UK, it designs, engineers, manufactures and supplies automated vehicles to the aviation industry for use in airside operations.

It is highly regarded as a specialist in automated technology for the aviation, ground handling and cargo industries.

Aurrigo has developed technology and vehicles which can be utilised to reduce costs, resolve operational issues, increase safety, tackle labour shortages, whilst also improving sustainability.

For more information, see www.aurrigo.com

CHAIR'S STATEMENT

I am delighted and privileged to present Aurrigo International plc's 2023 full year results. Let me share some key messages on our progress in what has been an exciting year of development and technological breakthrough.

The Group's investment in product development and expanding our team to pursue new market opportunities has resulted in a number of strategic relationships in key passenger and cargo hubs around the world. We continue to demonstrate a position of financial growth - delivering revenues in line with expectations of £6.6m, with a robust balance sheet and a solid cash position. As a quoted company, we operate with a high level of integrity, transparency, and strong governance that we know our investors, customers, partners and colleagues value.

KEY ACHIEVEMENTS

One of several notable achievements of the year was the development and deployment of the Auto- DollyTug® MK3 overcoming operational and technical hurdles with innovative engineering and design solutions. We now have a tested and proven vehicle with advanced functionality, capable of operating in extreme weather, aligning to airport equipment, and transferring baggage containers to aircraft on stand. We also completed a fundraise in what were very challenging market conditions - a real testament to the disruptive technology, sound business and talented team we have at Aurrigo, combined with a passion to succeed from the senior leadership team. We continued to build on a solid platform for growth and the whole team are proud to now be delivering on the expectations of when we joined AIM in 2022.

With the funding in place, Aurrigo is in a strong position to deliver on our planned projects and opportunities, particularly in the aviation space, introducing automated solutions which can improve efficiencies, staffing shortages and sustainability for airport operations globally.

Building on this, in October 2023, we announced a partnership agreement with International Airlines Group (IAG) to deploy and demonstrate Aurrigo's smart aviation solutions within the UK and in the USA at the Cincinnati/Northern Kentucky International Airport (CVG). We followed this by announcing further projects with Schiphol Nederland B.V. ("SNBV"), for the deployment and demonstration at Amsterdam Airport Schiphol, The Netherlands.

FINANCIAL

Following our successful £4.1m fundraise in November 2023, Aurrigo is well capitalised for its current needs, with a cash balance of £3.5m at period end and delivering £6.6m of revenues, with an Adjusted EBITDA loss of £3.2m. We continue to efficiently manage costs whilst also exploring non-dilutive funding for some projects, particularly grant funding.

OUTLOOK

Aurrigo began 2024 with excellent foundations and a clear strategy for growth, building on the revenue growth and key partnerships developed in the period.

We are on-track to deliver the key phases of growth outlined at our recent fundraise and the announcement of the phase 2b contract at Changi Airport (CAG). The design upgrades in Phase 2a resulted in the Phase 2b period extending beyond the end of the current financial year and into FY25. The Board is confident that the Aviation Division should deliver at least £3m of revenues in FY24, together with a further minimum of £6m from the Automotive Division. The partnership with CAG has allowed us to showcase our capabilities to other airport groups and airlines and this has resulted in agreements and projects underway with some of the industry's largest companies and airports.

The continued recovery of the aviation sector during 2023 has reinforced industry demand for efficiencies, decarbonisation, and solutions to staff shortages. This continues to underpin Aurrigo's growth drivers in aviation and our pipeline of opportunities. The Board therefore believes that we are well positioned to deliver on future growth ambitions.

Andrew Cornish

Non-Executive Chair

29 May 2024

CEO'S REPORT

2023 was another significant year for Aurrigo. We developed and proved out our smart aviation technology in airports internationally, established our leading market position and grew our network of strategic partners. We delivered a strong operational and financial performance for the year, in line with market expectations and are proud to be achieving what we set out at the time of the IPO increasing our headcount, developing our technology, building our Group profile within the aviation sector and realising the growth potential of our automated aviation baggage and cargo handling vehicles. Aurrigo has a strong heritage of automotive expertise, alongside valuable design capabilities. It has supplied leading vehicle manufacturers and Tier 1 suppliers for 30 years, including Aston Martin, Bentley, Jaguar, Land Rover, McLaren, and Rolls Royce. Our consistent delivery of high- quality products has built long-term customer relationships.

We have created award-winning, industry leading autonomous vehicles by investing in our proprietary products and software. Aurrigo has developed and owns all IP relating to our autonomous vehicle technology and we continue to invest in the research and development of products and software to maintain a market leading position.

Aviation is a key growth area for Aurrigo's automated vehicle technology. The global airline industry is seeking to improve its processes, tackle workforce shortages and reduce the environmental impact of operations, and these trends will increase demand for smart and sustainable solutions, offering significant future growth opportunities.

This, coupled with the Group's proprietary airport planning software tool and autonomous vehicle fleet management system, gives Aurrigo a significant competitive advantage.

The Group has created award-winning, industry leading automated vehicles by investing in our smart technology and software. Aurrigo has developed and owns all IP relating to this smart technology and continues to invest in the R&D of products and software to maintain a market leading position.

CUSTOMERS AND PARTNERS

Aurrigo's relationship with Changi Airport Group in Singapore has strengthened with each successful test of the Group's automated vehicles in airside demonstrations. Post year-end in May 2024, there was a milestone agreement signed with CAG. The contract paves the way for the future adoption of our Auto-DollyTug® for the servicing of live flights in the near term. Changi Airport Group has been exploring this technology with us since 2020 and the results of significant testing through extreme weather conditions has given them the confidence to place this contract with us. The multi-year partnership agreement provides greater opportunities to demonstrate automated smart solutions at the airport and showcase the technology to other visiting global airport groups and stakeholders. This has resulted in new relationships with the UPS, IAG, Stuttgart, Munich, Cincinnati, and Schiphol airports.

AUTOMOTIVE OVERVIEW

The Group continues to build on its excellent 31-year reputation for designing, developing, and manufacturing high quality and reliable products to Automotive Vehicle OEM's.

The refresh of the Aurrigo brand to the automotive sector and the acquisition of GB Wiring Systems Limited into the Group in 2023 has enabled the Group to position its latest electric vehicle (EV), advanced electronics and software capabilities more prominently and expand its customer base more widely.

The Automotive division will develop organic growth through maximising existing relationships and acquiring new customers. The division will continue to focus predominantly on technology in wiring systems, electronic control modules, embedded software and advanced designs with the ability to manufacture and supply those products to OEM quality requirements and to IATF16949 standards.

INNOVATION

The Group's strong focus on innovation and R&D continues at pace, with the next generation of Auto-Dolly® and Auto-DollyTug® now completed. This automated and class leading baggage and cargo operations vehicle has been completely developed in-house during 2023. The next phase of development and innovation will see a 'fleet' of automated baggage handling vehicles piloted for underwing operations during 2024 and 2025. The Group's Automotive experience was vital in developing a vehicle which could be manufactured cost effectively at scale and could be assembled not just in the UK but also in our key markets of North America and Asia.

SUMMARY

The exciting progress made by the Group during 2022 has continued strongly in 2023 and into 2024, with important aviation industry projects signed and major advancements completed in the Group's technology portfolio and automated vehicle capabilities.

Aurrigo's investment in sales and marketing, and the growth of our aviation industry profile, alongside our signed partnerships with international clients, is resulting in increased levels of new enquiries and engagements.

I am pleased to report that the Group is in a strong position to deliver on its objectives set out at IPO.

David Keene

Chief Executive Officer

29 May 2024

FINANCIAL REVIEW

Revenue for the year was £6.6m, an increase of 25% compared to 2022.

The Group has continued its development, post IPO, delivering strong results for the year ended 31 December 2023.

Excellent engagement with the lead aviation customer in Singapore has led to the development of a new automated vehicle for baggage and cargo operations, called Auto-DollyTug®, which boasts increased functionality and capability over any competitor in the market. The advanced features of this vehicle have attracted attention from airports and airlines around the world and the Group was pleased to announce additional contracts signed in the year. Revenue in the Aviation Technology division increased by 355%.

Included in other operating income is grant funding secured in the year for the demonstration of automated passenger vehicles year to the value of £0.6m.

£0.2m of deferred revenue has been released to the P&L Account from grants received in prior years.

Automated passenger vehicle sales and commercial demonstrations revenue fell by £0.2m but was offset by a £0.4m increase in grant funded projects.

Revenue from the Automotive division has increased by £1.3m (26.6%) through market recovery post Covid, organic growth and the acquisition of GB Wiring Systems Limited at the end of May 2023. The acquisition contributed £0.4m to revenue at a margin of 19% and has reduced customer concentration on average by approximately 10%.

Gross profit margin for the year was 22.3% compared to 34.3% in 2022. This reduction has arisen through product mix changes across divisions. Aviation Technology margins have increased to 80.3% in 2023 from 64.5% in 2022 whereas Automotive margins have fallen to 17.1% in 2023 from 31.2% in 2022. The fall in Automotive margins was due to product mix and it is expected that margin will improve through 2024.

Overheads for the year have increased by £1.8m (38.4%) compared to 2022 as a result of the full year impact of the increased staffing levels within the Aviation Technology Division and additional regulatory costs.

Adjusted EBITDA was a loss in the year of £3.2m compared to a loss of £0.9m in 2022. This is favourable to management expectations due to the implementation of improved cost controls for staffing and overheads.

STATEMENT OF FINANCIAL POSITION

The Group has continued to invest in R&D, capitalizing £0.8m in the year and carrying net book value of £5.8m as at the year end compared to £5.3m in 2022. Deferred grant income generated through R&D activities resulted in capitalisation of £3.5m as at the year end and will be released to the P&L Account in future years.

In November 2023, the Group secured additional funds raising £4.1m with associated costs of £0.3m.

Through the year funds will be utilised on the continued development of the Group's Aviation products and build of additional Auto-DollyTug® vehicles, which have been included within work in progress as at the year end. These vehicles will be used to generate Aviation revenues in 2024.

As at 31 December 2023, the Group's cash balance was £3.4m, a decrease of 35.7% compared to the period end 2022. The decrease in cash was primarily due to increased stocks of Aviation vehicles, WIP and continued R&D activities.

Strong cash management continues to be delivered with a focus on improved payment terms within contracts.

The acquisition in the year of GB Wiring Systems Limited generated goodwill of £0.2m at a cost of £0.3m.

OUTLOOK

Aviation revenue has increased in the first quarter of 2024 from the continued delivery of projects in Singapore and the signing of a number of new customer contracts. As expected, Automotive product mix has also improved in the first quarter with an increase of higher margin products. Improved customer payment terms, continued grant funding successes and tight cost control are having a beneficial effect on the Group's cash position.

Ian Grubb

Chief Financial Officer

29 May 2024

GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2023

Loss and total comprehensive income for the year is all attributable to owners of the Parent Company. All losses after taxation arise from continuing operations.

* Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, impairment, share-based payment charges, and exceptional items.

 GROUP STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

The financial statements were approved by the board of directors and authorised for issue on 30 May 2024

GROUP STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

GROUP STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THE GROUP FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1.      Basis of preparation

The Group financial statements have been prepared in accordance with UK Adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below and consistently applied.

While the financial information in these results has been prepared using the recognition and measurement principles of UK adopted International Accounting Standards, this announcement does not contain sufficient information to comply with this. The principal accounting policies used in preparing the results have been applied in the comparatives for the year-ended 31 December 2022.

The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 December 2023 or 2022, but is derived from those accounts noting that the Group transitioned to UK Adopted International Accounting Standards as disclosed in the Admission Document upon the Group's admission to the AIM Market. Statutory accounts for the year ended 31 December 2022 have been delivered to the Registrar of Companies and those for the year ended 31 December 2023 will be delivered following the Company's annual general meeting.

Parent Company

The Group meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. As permitted by FRS 101, the Group has taken advantage of the following disclosure exemptions from the requirements of IFRS:

(a) the requirements of IFRS 7 'Financial Instruments: Disclosure';

(b) the requirements within IAS 1 relating to the presentation of certain comparative information;

(c) the requirements of IAS 7 'Statement of Cash Flows' to present a statement of cash flows;

(d) paragraphs 30 and 31 of IAS 8 'Accounting policies, changes in accounting estimates and errors' (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but it not yet effective); and

(e) the requirements of IAS 24 'Related Party Disclosures' to disclose related party transactions and balances between two or more members of a Group.

As permitted by S408 Companies Act 2006, the Company had not presented its own Statement of Comprehensive Income. The Group's profit for the year was £83,994 (2022 - loss £282,829).

2.      Accounting Policies

Company Information

Aurrigo International Plc is a public company limited by shares incorporated in England and Wales. The registered office is Unit 33 Bilton Industrial Estate, Humber Avenue, Coventry, CV3 1JL. The company's principal activities and nature of its operations are disclosed in the directors' report.

The group consists of Aurrigo International Plc and all of its subsidiaries.

Going concern

The Parent Company is an investment holding company and it secured an additional fund raise of £4.1m during the year with associated costs of £0.3m. As such the Directors have assessed going concern based on the cash balance at the year end and the forecasts for the going concern period to determine whether the Parent Company can continue in operational existence for the foreseeable future. The Group has consolidated its trading position in the year, with sales of £6.6m and gross profit of £1.5m. Cash and cash equivalents amount to £3.5m at the year end.

The Directors have prepared detailed financial cashflow forecasts for the period to December 2025. These projections are based on the Group's detailed annual business plan. Sensitivity analysis has been performed to model the impact of more adverse trends compared to those included in the financial projections in order to estimate the impact of severe but plausible downside risks.

The key sensitivity assumptions applied include:

Delay in revenues derived from R&D testing of Autonomous vehicles and related simulation.

Increased wage rate inflation.

Increased general inflation on input costs, including goods sold.

Mitigating actions available to the Group and the Parent Company were applied and the Board challenged the assumptions used. After reviewing the forecasts of the Group and the Parent Company, the Board has formed the judgement at the time of approving the financial statements that there is a reasonable expectation that the Group and the Parent Company have adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements and so will continue to adopt the going concern basis of accounting when preparing the financial statements.

3.      Revenue and Segmental Analysis

IFRS 8 'Operating Segments' requires operating segments to be identified on the basis of internal reports of the Group that are regularly reviewed by the Group's chief operating decision maker. The chief operating decision maker

of the Group is considered to be the Board of Directors. The Group has considered the overriding core principles of IFRS 8 'Operating segments' as well as its internal reporting framework, management, and operating structure. The conclusion is that the Group has two operating segments as follows:

•   Automotive components - the supply of electrical components for use in the automotive sector and across other industrial applications, as well as trim and design components.

•   Autonomous - the design, including simulation contracts, development and manufacture of autonomous vehicles and associated autonomous design and consultancy services.

Where costs cannot be meaningfully allocated to either primary operating segment, these are allocated as central costs and overheads.

The Group does not track its assets and liabilities by operating segment, and as such no information is provided to the chief operating decision maker in this respect. As such, no disclosure is provided of the segmental analysis of assets and liabilities.

The revenues are allocated to the following operating segments:

All revenue is recognised at a point in time when the single performance obligation is satisfied and the product is sold to the customer. This is usually at the point that the customer has signed for the delivery of the goods and

the significant risks and rewards of ownership of the goods has transferred to the customer. There were no volume discounts in the current or prior year.

The Group presents the majority of its direct costs split on a reasonable basis for the operating segments identified, with any non-allocated income and costs presented within the central segment. The results are allocated to the following operating segments:

Revenue from customers who individually accounted for more than 10% of total Group revenue amounted to £5,022,459 (2022 - £4,051,430) from two customers, as follows:

Revenue from each of the above customers is recognised in the supply of automotive components segment.

Rest of the World

Assets and liabilities related to contracts with customers:

The Group had no contract assets or contract liabilities at the year-end (2022 - £nil).

4.      Other Operating Income

Government grants comprise grant income of £796,089 (2022 - £171,173) in relation to Innovate UK, Australian and Canadian equivalents, and UK local government bodies.

The Group has recognised the following liabilities in relation to other grant income:

Included in the above is deferred grant income due within one year of £217,248 (2022 - £217,248.

The release of deferred grant income is dependent on when amortisation of development costs begins but there are no other external contingencies in relation to recognising the grant income, except for the requirement to match the associated amortisation expense.

5.      Earnings Per Share

In the current year the Group incurred losses and as such has not presented any dilutive shares in accordance with IAS 33 'Earnings per share'. The diluted earnings per share is therefore the same as the basic earnings per share.

The Group does have a number of share options, which have been issued during the current year, that would dilute the earnings per share should the Group become profitable.

There were no share options outstanding at the end of the prior year.

Adjusted earnings per share

The Directors use adjusted earnings before exceptional costs share based payment expenses, depreciation and amortisation. This creates an alternative performance measure which the Directors believe reflects a fair estimate of ongoing profitability and performance. The calculated Adjusted Earnings for the current period of accounts is as follows:

As the adjusted earnings per share still shows the Group incurring losses during the current year, the dilutive shares have not been presented for the adjusted earnings per share calculation also. The diluted earnings per share is therefore the same as the basic earnings per share.

6.      Annual Report and Notice of Annual General Meeting

The Annual Report and Accounts for the year ended 31 December 2023, together with the notice of the Annual General Meeting will be available to download from the Company's website at https://aurrigo.com/documents-and-financial-calendar/ and will be posted today to those shareholders who have elected to receive hard copy.

The Company also announces that its Annual General Meeting (AGM) will be held on 25th June 2024 at Aurrigo's offices at Unit 33, Bilton Industrial Estate, Humber Avenue, Coventry, CV3 1JL at 10:00am.