REG - Byotrol PLC - Interim results and Investor Presentation
12/12/2022 07:00
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RNS Number : 2922J Byotrol PLC 12 December 2022
Byotrol Plc
("Byotrol" or the "Group")
Interim results and Notice of Investor Presentation
Byotrol Plc (AIM: BYOT), the specialist infection prevention and control
company, is pleased to announce its unaudited interim results for the six
months ended 30 September 2022.
Highlights
Our financial performance for the half year shows the results of an increasing
focus on a smaller number of higher margin market segments, with fewer
technologies and skus than during the pandemic. Key financial indicators
(still compared to an element of covid-inflated prior H1) are as follows:
· Total Sales of £2.2m (H1 FY22: £3.2m) of which product sales
were £2.0m (H1 FY22: £2.4m)
· Gross profit £1.1m (H1 FY22: £1.7m)
· Increase in Gross Margin on product sale to 40.3% (H1 FY22:
37.4%)
· IP sales (new and existing contracts) £0.22m (H1 FY22:
£0.75m)
· Adjusted EBITDA* -£0.3m (H1 FY22: £0.2m)
· Cash of £1.2m at period end
Feedback from our partners in existing IP agreements remains positive, with
further regulatory approvals now being secured, especially in the US. This is
yet to feed through to material royalty and commission income, but those
partners continue to invest heavily in their markets so we remain confident in
future returns.
David Traynor, Executive Chairman of Byotrol commented:
"Byotrol is well positioned to grow in post-pandemic antimicrobial markets, as
we continue to focus on regulatory-approved, high performance biocide
technologies.
We are now increasing market share from product sales in animal and human
health as competitors withdraw for regulatory reasons, and within those
markets we are increasing margins through sharper focus of resources, greater
simplification of operations and enhanced economies of scale. These returns
are set to grow further, boosted by ongoing high margin licensing agreements
and alliances.
We look forward to supporting Vivan Pinto in his new position of Byotrol CEO,
and we sincerely thank John Langlands for his excellent contribution to our
Company."
Investor Presentation
David Traynor, Executive Chairman, Vivan Pinto, CEO, and Chris Sedwell,
CFO will provide a live presentation relating to these results via the
Investor Meet Company platform on 14th Dec 2022 at 3:00pm GMT.
The presentation is open to all existing and potential shareholders. Questions
can be submitted at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to
meet BYOTROL PLC via:
https://www.investormeetcompany.com/byotrol-plc/register-investor
(https://www.investormeetcompany.com/byotrol-plc/register-investor)
Investors who already follow BYOTROL PLC on the Investor Meet Company
platform will automatically be invited.
For further information contact:
Byotrol Plc
David Traynor, Executive Chairman +44 (0)1925 742 000
Vivan Pinto, Chief Executive
Chris Sedwell, Chief Financial Officer
finnCap Limited (Nominated Adviser and Broker) +44 (0)20 7220 0500
Geoff Nash/George Dollemore - Corporate Finance
Nigel Birks/Harriet Ward - ECM
Flagstaff Strategic and Investor Communications +44 (0)20 7129 1474
Tim Thompson/Andrea Seymour/Fergus Mellon byotrol@flagstaffcomms.com (mailto:byotrol@flagstaffcomms.com)
This announcement is released by Byotrol Plc and, prior to publication, the
information contained herein was deemed to constitute inside information under
the Market Abuse Regulations (EU) No. 596/2014. Such information is disclosed
in accordance with the Company's obligations under Article 17 of MAR. The
person who arranged for the release of this announcement on behalf of Byotrol
Plc was Chris Sedwell, CFO.
* Adjusted EBITDA is defined as Earnings before Interest, Tax, Depreciation
and Amortisation and exceptional items, share-based payments, non-trading
items such as profit or loss on disposal of assets, plus revenue recognised as
interest under IFRS 15
Notes to editors
Byotrol plc (BYOT.L), quoted on AIM, is a specialist infection prevention and
control company, operating globally in the Healthcare, Industrial, Food and
Consumer sectors, providing low toxicity products with a broad-based and
targeted efficacy across all microbial classes; bacteria, viruses (including
coronavirus), fungi, moulds, mycobacteria and algae.
Byotrol's products can be used stand-alone or as ingredients within existing
products, where they can significantly improve their performance, especially
in personal hygiene, domestic and industrial disinfection, odour control, food
production and food management.
Byotrol develops and commercialises technologies that create easier, safer and
cleaner lives for everyone.
For more information, go to byotrol.com
Executive Chairman's report and financial review
The headline numbers for this report are ahead in many respects compared to
the half year pre-Covid, but behind the half yearly results during the
pandemic, including versus the first half of FYE March 2022.
The Company remains very well positioned strategically, with a solid balance
sheet and net cash.
The 'boom' of Covid led to a period of over-supply in our industry once demand
started to normalize. The excess stocks have now largely flowed-through but
have generated consolidation as competitors and manufacturers who had
over-extended themselves during the pandemic run out of cash. This
consolidation is further driven by the increasingly demanding regulatory
environment which many players do not have the resources or technical ability
to succeed in.
Byotrol has long maintained a competitive technical and regulatory capability
on a small cost base with high operational gearing and so is now well placed
to benefit from these trends, to grow market share and to benefit from the
consolidation. Our market share is now starting to grow and our financials are
beginning to show the benefits of some fundamental operating changes made
within the Company to maximise returns. These include:
· Sharp increase in focus. We have reduced our technology platforms
from seven to four, our operational segments from seven to three (animal
health, specialist human health and consumer) and our SKUs by 25% so far.
· Concomitant refocus of resources in sales and marketing,
technical support and supply chain.
· A resulting gross margin improvement of 3 percentage points despite the
volatile supply chain and inflationary environment. Gross margin on product
sales in H1 exceeded 40%, versus 37% in the prior year. Including provision
releases year to date, reported gross margin for the period was 43.9%.
These improvements reflect what Byotrol has been positioning for over many
years and that we are now seeing playing out in the market across Europe.
Our lead market for products is now animal health, built on the brand equity
from the acquired business and brands of Medimark Scientific, where we are
substantially growing market share and are capitalizing on our first new
surface sanitising technology platform launch under the 'Anigene' brand (see
'technology' section below).
Our strategy therefore remains in place and we will accelerate on the same
path. Product sales are expected to increase steadily, especially in
Professional, with the increased focus and better economies of scale leading
to further improvement in margins. Those returns should also now be boosted
through commission and license royalties from IP agreements finally bearing
fruit. We now have an impressive portfolio of high-quality platform
technologies, which we believe is yet to be fully recognized in the Company's
valuation.
Your team therefore remains very confident in our positioning and in upcoming
returns. This confidence was confirmed by management and team contributing
over half of the funds for a £1m convertible bond financing completed in July
this year, which solidifies our balance sheet, protects growth-oriented
spending and protects us against further extraneous market shocks.
Results by segment
Professional
H1 revenues decreased to £1.90m from £2.61m, including £0.22m of royalty
and licensing revenue compared to £0.75m in the comparable period. Gross
profit on product sales (excluding license revenue) increased to £0.75m from
£0.70m, reflecting the underlying improvement and simplification of the
business.
Market conditions are largely back to normal in our traditional Professional
market sectors, except in facilities management, where price competition is
very strong and little recognition is being given to improved technology
claims. We did expect this to be the case as the effects of the pandemic
wore off and the UK economic outlook worsened and we have been consequently
focussing sales and marketing efforts this year on animal health markets and
on specialist niches in the higher margin human health markets. In the
period under review Professional product revenue was split 52% animal health,
35% human health, 13% FM and other, versus 52%, 21% and 27% respectively in
the previous half year.
The EU regulatory system is moving now in the direction that we have long been
positioning for, and sales into customers with continental EU HQs have
increased as a result. The UK's now-independent system is also becoming
clearer.
Consumer
H1 revenues decreased to £0.34m from £0.56m and gross profit to £0.14m from
£0.20m, with gross margin increasing to 41% from 36%, a result (as in
Professional) of focussing on higher margin product areas.
We have hired new leadership into our consumer division, tasked with selling
our core technologies into retail and wholesalers under our brand and
third-party brands. The opportunity here remains substantial, but given the
high spend required to grow quickly, we are being very selective in the
business that we pursue.
We therefore expect Consumer to remain niche for us in product sales in the
short term, but with improving profitability, and we will exit channels where
the spend and opportunity cost is not matched by the profit potential. This
has led for instance to a gradual withdrawal from a well-known UK pet
retailer, where we concluded that we would not be able to achieve a
satisfactory return for the resources and risk required.
Technology Portfolio
The team has recognised for many years a need to focus technical effort and
regulatory spend on a smaller number of platforms as the basis for our own
product sales, especially as the regulatory deadlines approach. We are now
taking the necessary decisions and have fixed on 3 core platforms that we will
support through the final regulatory approvals in the EU:
· HLD4 and its upgrade ("Cruise") for animal and human health - a high
performance surface disinfectant, with broad spectrum anti-microbial activity
and excellent value to customers on a per-use basis.
· A new, natural and sustainable technology with excellent
anti-microbial performance, especially against viruses, and we believe
applicable in skin care and all surface care environments including humans,
animals and specialist food environments. This is a new platform that we
have been developing for 3 years and that is showing real promise in all
targeted markets.
· Invirtu hand sanitisers - alcohol free skin sanitization with an
upgraded and more robust formulation, but with the same germ kill and
dermatological benefits.
We continue to invest judiciously in other technical areas where we see
potential from IP agreements and alliances, notably:
· Seaweed antivirals - which is more appropriate for pharma, OTC and
consumer applications than core Byotrol biocide markets, but that we still see
as a valuable asset
· Technologies that support long-lasting anti-microbial claims
(notably Byotrol24 and Actizone)
· Quaternary-free sanitisers for food markets
The IP commercialization effort for these technologies now has a dedicated
sales team.
Intellectual Property Sales and Licensing
As reported in our year-end report in September (FYE March 2022), our
licensing business has been held back by poor market conditions and by
increasing customer focus on price and value in mass markets. This has meant
some of our licensees are currently paying us minimum guaranteed royalties
only. However, given the underlying regulatory position, we continue to see
this as a core activity of Byotrol, offering 100% gross margin and broader
distribution than we could achieve on our own.
The two most active IP-based projects are:
· Solvay has now launched Actizone globally, the long-lasting
antimicrobial surface sanitiser that Byotrol co-developed and that will pay
Byotrol an ongoing commission on all Solvay sales. In October 2022 Solvay
finally achieved US EPA and individual state approvals for Actizone, meaning
that it is now the only globally available product of its type, applicable
across consumer and professional markets worldwide. We await with interest
new product launches (US and globally) and our first sizeable commission
payments. We remain very limited by NDAs in what we can report on Solvay
activity, as is Solvay with its own customers, but from publicly available
sources we understand there are upcoming launches by household names in both
consumer and business markets in the US, Europe and Asia.
· IRI and the Company are facilitating a new EPA registration of the
Byotrol 24 formulation in the US under a globally recognized business hygiene
brand. We expect this to go into a test market in mid-2023, with a full launch
in the US to follow should market testing prove successful.
Balance sheet
Our balance sheet was considerably strengthened in July by issuing £1m in
convertible notes, to existing shareholders and to the Byotrol team. This
was put in place as an insurance policy against further market shocks and to
permit continued investment in sales, marketing and technology.
As with prior periods, we continue to invest in our IP and associated
regulatory costs with £202k of additions into Intangible Assets in the first
half of FY23 (see Note 7). Similarly, to support our growth strategy as
outlined above, including our Anigene formulation re-launch, we have invested
tactically in our inventory during the period resulting in a closing stock
balance of £627k.
The above movements, combined with ongoing investment in strengthening the
Byotrol team, resulted in a cash balance at period end of £1.2m.
Management Changes
On 22 November 2022 October we announced that John Langlands will be retiring
from business life - and hence from the Byotrol board - on January 31, 2023
and that he would step-down with immediate effect from Non Executive Chairman
of Byotrol plc. John has completed six years of service at the Company, one
more year than he originally intended. He retires with the sincere thanks of
the Directors.
We also announced the immediate promotion of our Chief Growth Officer (since
January 2022) Vivan Pinto to CEO. Vivan brings many years of general
management experience from multinationals such as J&J and Reckitt and has
already been making a big impact upon the quality of the Company's operations.
Outlook
The new management team has concentrated much of its efforts in this half year
to improving the team, systems and processes - particularly in supply chain -
and making the necessary decisions to rationalize the portfolio with focus on
higher margin segments. We have made a lot of progress in this and are
encouraged by the fact that gross margins are now on an upward trajectory.
Market demand is now solid in all areas except facilities management, which
now accounts for only 13% of the Professional product portfolio. We will
refocus in this area on niche segments with high margins and high barriers to
entry as per our overall strategy. The favourable long-term demand trends in
antimicrobial markets remain firmly in place.
We are now consistently winning product business in our main areas of focus in
animal and human health. The re-launch of our animal healthcare formulation
Anigene at the London Vet Show in November 2022 was very encouraging and is
already leading to an upturn in orders.
We have had to learn to be patient on IP sales as we only make money when our
licensees do. But the cash from minimum guarantees continues to boost our
resources and the degree of investment by those licensees with regulators -
especially in the US - remains very high.
Byotrol remains well-resourced to deliver further commercial progress; the
long-term outlook for your company remains excellent.
David Traynor
Executive Chairman
Group statement of comprehensive income
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
Note £'000 £'000 £'000
(unaudited) (unaudited) (audited)
Revenue 2 2,232 3,173 6,327
Cost of sales pre-exceptional item (1,129) (1,517) (3,287)
_______ _______ _______
Gross profit pre-exceptional item 1,103 1,656 3,040
Cost of sales - exceptional item - - (214)
_______ _______ _______
Gross profit 1,103 1,656 2,826
Adjusted administrative expenses (1,586) (1,633) (3,315)
_______ _______ _______
Adjusted operating (loss)/profit (483) 23 (489)
Exceptional items - - (372)
Amortisation of acquisition-related intangibles (169) (121) (317)
Share-based payments - (64) (95)
_______ _______ _______
Operating loss (652) (162) (1,273)
Finance income 4 50 26 48
Finance expense 5 (21) (5) (20)
_______ _______ _______
Loss before taxation (623) (141) (1,245)
Income tax credit/(expense) 44 23 (102)
_______ _______ _______
Loss for the period (579) (118) (1,347)
Items that may be reclassified subsequently to profit or loss:
Exchange differences 156 11 59
_______ _______ _______
Other comprehensive income/(expense), net of tax 156 11 59
Total comprehensive loss for the period (423) (107) (1,288)
Earnings per share - from profit for the period
Attributable to the owners of Byotrol plc (basic) 6 (0.13)p (0.03)p (0.30)p
Attributable to the owners of Byotrol plc (diluted) 6 (0.13)p (0.03)p (0.29)p
Group statement of financial position
As at As at As at
30 September 2022 30 September 2021 31 March
2022
Note £'000 £'000 £'000
(unaudited) (unaudited) (audited)
Assets
Non-current assets
Intangible assets 7 3,433 3,617 3,506
Tangible assets 76 80 73
Right-of-use assets 8 17 41 25
Deferred tax assets 134 315 134
Trade receivables 1,804 1,292 1,561
_______ _______ _______
5,464 5,345 5,299
Current assets
Inventories 627 733 399
Trade and other receivables 1,649 1,772 1,941
Cash and cash equivalents 1,158 1,902 1,132
_______ _______ _______
3,434 4,407 3,472
Total assets 8,898 9,752 8,771
Liabilities
Non-current liabilities
Lease liabilities 9 8 16 12
Deferred tax liabilities 360 325 383
Convertible loan stock 962 - -
_______ _______ _______
1,330 341 395
Current liabilities
Trade and other payables 827 1,027 1,246
Lease liabilities 9 8 26 12
_______ _______ _______
835 1,053 1,258
Total liabilities 2,165 1,394 1,653
NET ASSETS 6,733 8,358 7,118
Issued share capital and reserves
Share capital 1,135 1,133 1,135
Share premium 457 434 457
Other reserves 981 739 787
Retained earnings 4,160 6,052 4,739
_______ _______ _______
TOTAL EQUITY 6,733 8,358 7,118
Group statement of cash flows
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
£'000 £'000 £'000
(unaudited) (unaudited) (audited)
Cash flows from operating activities
Loss for the period (579) (118) (1,347)
Adjustments for:
Finance income (50) (26) (48)
Finance costs 21 5 20
Depreciation of tangible non-current assets 26 16 31
Amortisation of intangible non-current assets 275 190 517
Loss on disposal of assets 1 17 17
Income tax recognised in profit or loss (44) (23) 102
Share-based payments - 64 95
_______ _______ _______
Operating cash flows before movements in working capital (350) 125 (613)
(Increase)/decrease in trade and other receivables 49 (185) (555)
(Increase)/decrease in inventories (227) 366 699
Increase/(decrease) in trade and other payables (377) 29 186
_______ _______ _______
Cash (used in)/generated from operating activities (905) 335 (283)
Income tax refund received 21 - -
_______ _______ _______
Net cash (used in)/generated from operating activities (884) 335 (283)
Cash flows from investing activities
Development of intangible assets (202) (272) (488)
Acquisition of property, plant and equipment (20) (12) (20)
_______ _______ _______
Net cash used in investing activities (222) (284) (508)
Cash flows from financing activities
Proceeds from issue of ordinary shares, net of issue costs - 261 286
Proceeds from issue of convertible loan stock 1,000 - -
Repayments of principal on lease liabilities (4) (14) (7)
Finance Income 1 - -
Finance costs (21) (4) (12)
Interest expense on lease liabilities - (1) (1)
_______ _______ _______
Net cash (used in)/ generated by financing activities 976 242 266
Net (decrease)/increase in cash and cash equivalents (130) 293 (525)
Net foreign exchange differences 156 11 59
Cash and equivalent at beginning of period 1,132 1,598 1,598
_______ _______ _______
Cash and cash equivalents at end of period 1,158 1,902 1,132
Group statement of changes in equity
Share capital Share premium Other reserve Retained profits Total
Exchange reserve
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 March 2021 1,116 190 728 - 6,106 8,140
Loss after taxation for the period - - - - (118) (118)
Share-based payments - - - - 64 64
Other comprehensive income:
Exchange differences - - 11 - - 11
Transactions with owners:
Shares issued for cash 17 244 - - - 261
_____ _____ _____ _____ _____ _____
Balance at 30 September 2021 1,133 434 739 - 6,052 8,358
Loss after taxation for the period - - - - (1,229) (1,229)
Other comprehensive income:
Exchange differences - - 48 - - 48
Transactions with owners:
Share-based payments - - - - 31 31
Deferred tax on share-based payment transactions - - - - (115) (115)
Transactions with owners - capital reduction:
Costs of Capital Reduction 2 23 - - - 25
_____ _____ _____ _____ _____ _____
Balance at 31 March 2022 1,135 457 787 - 4,739 7,118
Loss after taxation for the period - - - - (579) (579)
Other comprehensive income:
Exchange differences - - 156 - - 156
Transactions with owners:
Convertible Loan Stock Issue - - - 38 - 38
_____ _____ _____ _____ _____ _____
Balance at 30 September 2022 1,135 457 943 38 4,160 6,733
Notes to the Group financial statements
1 Basis of preparation
The Group has prepared its interim financial statements for the 6 months ended
30 September 2022 (the "interim results") in accordance with the recognition
and measurement principles of International Financial Reporting Standards
("IFRS") as adopted by the European Union and also in accordance with the
recognition and measurement principles of IFRS issued by the International
Accounting Standards Board, but do not include all the disclosures that would
otherwise be required. They have been prepared under the historical cost
convention as modified to include the revaluation of certain non-current
assets. The accounting policies adopted in the interim financial statements
are consistent with those adopted in the Group's Annual Report and Financial
Statements for the year ended 31 March 2022 and those which will be adopted in
the preparation of the Annual Report for the year ending 31 March 2023.
As permitted, the interim results have been prepared in accordance with the
AIM Rules of the London Stock Exchange and not in accordance with IAS34
Interim Financial Reporting. They do not constitute full statutory accounts
within the meaning of section 434 of the Companies Act 2006 and are unaudited.
Going concern
The Directors have considered trading and cash flow forecasts prepared for the
Group and based on these are satisfied that the Group will continue to be able
to meet its liabilities as they fall due for at least one year from the date
of these results. On this basis, they consider it appropriate to have adopted
the going concern basis in the preparation of the interim results, which were
approved by the Board of Directors on 9 December 2022.
Comparative financial information
The comparative financial information presented herein for the year ended 31
March 2022 does not constitute full statutory accounts for that period. The
statutory accounts for the year ended 31 March 2022 carried an unqualified
Auditor's Report, did not draw attention to any matters by way of emphasis and
did not contain a statement under Section 498(2) or 498(3) of the Companies
Act 2006.
2 Segmental analysis
Revenue and gross profit by segment
6 months ended 30 September 2022 Continuing Total
operations
Professional Consumer
£'000 £'000 £'000
Revenue
Product sales 1,678 336 2,014
Royalty and licensing income 218 - 218
_______ _______ _______
Total revenue 1,896 336 2,232
Gross profit
Product sales 746 139 885
Royalty and licensing income 218 - 218
_______ _______ _______
Total gross profit 964 139 1,103
6 months ended 30 September 2021 Continuing Total
operations
Professional Consumer
£'000 £'000 £'000
Revenue
Product sales 1,862 560 2,422
Royalty and licensing income 751 - 751
_______ _______ _______
Total revenue 2,613 560 3,173
Gross profit
Product sales 705 200 905
Royalty and licensing income 751 - 751
_______ _______ _______
Total gross profit 1,456 200 1,656
Revenue by geography
The Group recognises revenue in three geographical regions based on the
location of customers, as follows:
6 months ended 30 September 2022 Professional Consumer Total
£'000 £'000 £'000
United Kingdom 1,575 140 1,715
North America 43 - 43
Rest of World 278 196 474
_______ _______ _______
Total revenue 1,896 336 2,232
6 months ended 30 September 2021 Professional Consumer Total
£'000 £'000 £'000
United Kingdom 1,650 366 2,016
North America 751 - 751
Rest of World 212 194 406
_______ _______ _______
Total revenue 2,613 560 3,173
Management makes no allocation of costs, assets or liabilities between these
segments since all trading activities are operated as a single business unit.
License revenue and finance income
License contracts (and certain other contracts relating to the sale of IP)
typically provide for fixed payments to be made by customers over a given term
(typically between three and five years but which may extend longer). Under
IFRS 15, in order to reflect the time value of money, such contracts are
recognised as the capitalised value of the income stream plus notional
interest accruing for the period on the credit deemed to be extended to the
customer (on a reducing balance basis). For the 6 months to 30 September 2022
this figure amounts to license revenue of £0.175m and notional interest
income of £49,000.
3 Non-GAAP profit measures and exceptional items
Reconciliation of operating profit to adjusted EBITDA (earnings before
interest, taxation, depreciation and amortisation):
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
£'000 £'000 £'000
Operating profit/(loss) (652) (162) (1,273)
Adjusted for:
Amortisation and depreciation 301 221 578
_______ _______ _______
EBITDA (351) 59 (695)
Loss on disposal of assets 1 17 17
Revenue recognised as interest under IFRS 15 49 26 36
Expensed share-based payments - 64 95
Exceptional items:
- Inventory Provision - - 214
- IP receivables provision - - 147
- Restructure costs - - 225
Total exceptional items - - 586
_______ _______ _______
Adjusted EBITDA (301) 166 39
The criterion for adjusting items in the calculation of adjusted EBITDA is
operating income or expenses that are material and either (i) arise from an
irregular and significant event or (ii) are such that the income/cost is
recognised in a pattern that is unrelated to the resulting operational
performance. Materiality is defined as an amount which, to a user, would
influence decision-making based on, and understandability of, the financial
statements. Adjustment for share-based payment expense is made because, once
the cost has been calculated, the Directors cannot influence the share based
payment charge incurred in subsequent years, and the value of the share option
to the employee differs considerably in value and timing from the actual cash
cost to the Group.
Exceptional items are treated as exceptional by reason of their size or nature
and are excluded from the calculation of adjusted EBITDA (and adjusted
earnings per ordinary share) to allow a better understanding of comparable
year-on-year trading and thereby an assessment of the underlying trends in the
Group's financial performance. These measures also provide consistency with
the Group's internal management reporting.
Adjusted EPS
The calculation of adjusted EPS is shown in Note 6.
4 Finance income
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
£'000 £'000 £'000
Interest receivable on interest-bearing deposits 1 - 12
Notional interest accruing on contracts with a significant financing component 49 26 36
_______ _______ _______
Total finance income 50 26 48
5 Finance expense
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
£'000 £'000 £'000
Interest and finance charges 21 4 19
Interest on lease liabilities under IFRS 16 - 1 1
_______ _______ _______
Total finance expense 21 5 20
6 Earnings per share
The following sets out the earnings and share data used in the basic and
diluted earnings per share computations:
Denominator for earnings per share ("EPS") calculations
Year to 31 March 6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
Weighted number of ordinary shares in issue 453,890,405 452,659,277 453,066,186
Effect of dilutive potential ordinary shares - Share Options 522,444 3,342,894 4,106,908
_______ _______ _______
454,412,849 456,002,170 457,173,094
The Group has two categories of potentially dilutive ordinary share. The
first is share options granted to employees where the exercise price (plus the
remaining expected charge to profit under IFRS 2 per option) is less than the
average price of the Company's ordinary shares during the period. The weighted
average number of shares for the calculation of diluted earnings per share is
computed using the treasury share method.
The second relates to the Convertible Bond. The Group issued a Convertible
Bond for £1m in July 2022 to new and existing investors in the Company,
including Board directors. The Loan Notes have a term of five years, are
senior in ranking, unsecured and convertible at investors' option into
ordinary shares in the capital of the Company ("Ordinary Shares") at a price
of 3.25 pence per Ordinary Share, representing a 30% premium to the mid-price
of the Company's share price at close of business on 26 July 2022. The Loan
Notes carry a coupon of 9% per annum, payable quarterly in arrears. Based on
the issue size of £1,000,000, the Loan Notes would, if converted, represent
approximately 30,769,230 Ordinary Shares, amounting to 6.8% of the current
issued share capital of the Company. However, as the average Byotrol share
price since the issue of the Convertible Bond has been below the 3.25p
conversion price, these are currently classed as non-dilutive and do not
feature in the Denominator calculation above.
Numerator for EPS calculations
6 months to 30 September 2022 Total
£'000
Profit/(loss) attributable to ordinary equity holders of the Company (579)
(numerator for basic EPS calculation)
Adjusting items:
- share-based payments -
- amortisation of acquisition-related intangibles 168
- deferred tax credit arising from acquisition-related intangibles (23)
_______
Adjusted earnings attributable to owners of the Parent (434)
(numerator for adjusted EPS calculation)
6 months to 30 September 2021 Total
£'000
Profit/(loss) attributable to ordinary equity holders of the Company (118)
(numerator for basic earnings per share calculation)
Adjusting items:
- share-based payments 64
- amortisation of acquisition-related intangibles 121
- deferred tax credit arising from acquisition-related intangibles (23)
_______
Adjusted earnings attributable to owners of the Parent 44
Year to 31 March 2022 Total
£'000
Profit/(loss) attributable to ordinary equity holders of the Company (1,347)
(numerator for basic earnings per share calculation)
Adjusting items:
- share-based payments 95
- exceptional items 586
- amortisation of acquisition-related intangibles 317
- deferred tax credit arising from acquisition-related intangibles 35
_______
Adjusted earnings attributable to owners of the Parent (314)
The criteria for inclusion of adjusting items in the calculation of adjusted
EPS are the same as those relating to the calculation of adjusted EBITDA as
set out in Note 3. Amortisation of acquisition-related intangibles (and the
associated tax credit) relates to the amortisation of intangible assets in
respect of customer relationships and brands which are recognised on a
business combination and are non-cash in nature.
EPS - reported
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
£'000 £'000 £'000
Reported earnings per share attributable to shareholders
- basic (0.13)p (0.03)p (0.30)p
- diluted (0.13)p (0.03)p (0.29)p
EPS - adjusted
6 months to 6 months to Year to
30 September 2022 30 September 2021 31 March
2022
£'000 £'000 £'000
Adjusted earnings per share attributable to shareholders
- basic (0.10)p 0.01p (0.07)p
- diluted (0.10)p 0.01p (0.07)p
7 Intangible assets
Intangible assets comprise capitalised development costs, acquired software,
customer relationships and goodwill.
Goodwill Other Intangible Assets Total
£'000 £'000 £'000
Cost
At 1 April 2022 502 5,031 5,533
Additions - 202 202
(Disposals) - - -
_____ _______ _______
At 30 September 2022 502 5,233 5,735
Amortisation
At 1 April 2022 - (2,027) (2,027)
Charge for the period - (275) (275)
Eliminated on disposal - - -
_______ _______ _______
At 30 September 2022 - (2,302) (2,302)
Net carrying amount
At 30 September 2022 502 2,931 3,433
At 1 April 2022 502 3,004 3,506
Other Intangible Assets comprise:
Customer Relationships Brands Development Costs Patents and licenses Total
£'000 £'000 £'000 £'000 £'000
Cost
At 1 April 2022 1,861 567 1,902 701 5,031
Additions - - 165 37 202
(Disposals) - - - - -
_______ _______ _______ _______ _______
At 30 September 2022 1,861 567 2,067 738 5,233
Amortisation
At 1 April 2022 (671) (224) (621) (511) (2,027)
Charge for the period (93) (75) (91) (16) (275)
Eliminated on disposal - - - - -
_______ _______ _______ _______ _______
At 30 September 2022 (764) (299) (712) (527) (2,302)
Net carrying amount
At 30 September 2022 1,097 268 1,355 211 2,931
At 1 April 2022 1,190 343 1,281 190 3,004
8 Right-of-use assets
Right-of-use assets comprise leases over office buildings and vehicles.
Office Vehicles Total
buildings
£'000 £'000 £'000
Cost
At 1 April 2022 103 26 129
Additions in the period - - -
(Disposals) in the period - - -
_______ _______ _______
At 30 September 2022 103 26 129
Depreciation
At 1 April 2022 (99) (5) (104)
Charge for the period (4) (4) (8)
Eliminated on disposal - - -
_______ _______ _______
At 30 September 2022 (103) (9) (112)
Net carrying amount
At 30 September 2022 - 17 17
At 1 April 2022 4 21 25
9 Lease liabilities
Lease liabilities comprise liabilities arising from the committed and expected
payments on leases over office buildings and vehicles.
Amounts due in more than one year Office buildings Vehicles Total
£'000 £'000 £'000
At 1 April 2022 - 12 12
Transfers from long to short term liabilities - (4) (4)
At 30 September 2022 _______ _______ _______
- 8 8
Amounts due in less than one year Office buildings Vehicles Total
£'000 £'000 £'000
At 1 April 2022 4 8 12
Repayments of principal (4) (4) (8)
Transfers from long to short term liabilities - 4 4
_______ _______ _______
At 30 September 2022 - 8 8
10 Post balance sheet events
There have been no events subsequent to the reporting date which would have a
material impact on these interim financial results
END
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