REG - Eden Research plc - Half yearly Report
23/09/2024 07:00
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RNS Number : 1397F Eden Research plc 23 September 2024
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
23 September 2024
Eden Research plc
("Eden" or "the Company")
Half Yearly Report
Eden Research plc (AIM: EDEN), a leader in sustainable biopesticide and
biocontrol technology, announces its interim results for the six months ended
30 June 2024.
Financial highlights
· Revenue for the period of £1.9m (H1 2023: £1.1m)
· Product sales of £1.7m (H1 2023: £1.1m)
· Operating loss for the period of £1.3m (H1 2023: £1.2m)
· Cash and cash equivalents of £4.9m (H1 2023: £0.5m)
· On track to meet 2024 market expectations for revenue and
operating loss
Business highlights
Expanding regulatory approvals in key territories, including the US, new
commercial agreement, and new product areas
· Authorisation for Mevalone(®) received in the key state of
California
· Mevalone(®) authorised for use in new crops and fungal pathogens
in Spain
· 140 insecticide field trials run by potential distribution
partners so far in 2024, following significant interest in the evaluation of
Eden's developmental insecticide
· Authorisation for Mevalone(®) received in Germany and Czechia
(post period-end)
Corporate highlights
Strengthening of the Company's financial position and team to allow the
business to grow apace
· Eden named ESG Company of the Year at the prestigious 2024
Small Cap Network Awards in recognition of its commitment to environmental,
social and governance matters and contribution to the green economy
· Appointment of Derek McAllan as Non-executive Director and
Chairman of the Audit Committee
· Strengthening of the Commercial Team with the appointment of
Humair Tariq as Global Commercial Lead and Daniel Mulas Garcia as Global
Product and Marketing Lead
Lykele van der Broek, Chairman of Eden Research, commented:
"Eden continues to grow, as evidenced by increased sales of 65% compared to
the first half of 2023 and product registrations received across target
geographies. To support this growth and ensure the business can capture its
significant future potential, we have expanded the team in the first half of
the year, welcoming Humair Tariq as Global Commercial Lead, Daniel Mulas
Garcia as Global Product and Marketing Lead and Ilshad Moulan as Head of
Regulatory Affairs. We were also delighted to appoint Derek McAllan as
Non-executive Director and Chairman of the Audit Committee.
In the background, the Company is working flat out developing novel
formulations and commercialising products in order to fully exploit the vast
bank of intellectual property and expertise that Eden has created over the
past four years in particular, since it opened its laboratory facilities in
mid-2020.
Be in no doubt, the potential for Eden is huge.
Aside from having a great team and a strong product portfolio, Eden is very
much in the right place at the right time.
Regulators continue to restrict, or ban, existing chemistry, whilst at the
same time making it increasingly difficult for new active ingredients and
products to come into the market with ever-increasing regulatory requirements.
Farmers continue to demand choice and flexibility in their use of pesticides
with an ever-reducing set of tools available to them, due to the diminution of
old chemistry.
Consumers and supermarkets are increasingly demanding residue-free, organic
produce, which Eden can help growers to deliver.
All of this means that demand for products like Eden's will continue to
increase, something which is backed up by market forecasts that predict a
Compound Annual Growth Rate of the global biopesticides market of 15.9% over
the next seven years.
I remain very confident in the future success of Eden and would like to thank
our shareholders for their continued support and belief in us."
For further information contact:
Eden Research plc www.edenresearch.com (http://www.edenresearch.com/)
Sean Smith 01285 359 555
Alex Abrey
Cavendish Capital Markets Limited (Nominated advisor and broker)
Giles Balleny / George Lawson (corporate finance) 020 7397 1961
Charlie Combe (corporate broking)
Michael Johnson (sales)
Hawthorn Advisors (Financial PR)
Victoria Ainsworth eden@hawthornadvisors.com (mailto:eden@hawthornadvisors.com)
Chief Executive Officer's Statement
The first half of 2024 was characterised by strong regulatory momentum,
including a number of significant approvals in key geographies, and also the
expansion of our team to increase our capacity to capture future
opportunities. These efforts have enabled us to meet our growth objectives,
supported by increased product sales across our existing portfolio and our
commercial partnerships with some of agriculture's largest players.
Financial performance
Revenue for the period increased by 65% to £1.9m from £1.1m in H1 2023, of
which product sales made up £1.7m (H1 2023: £1.1m).
The Operating loss for the period was £1.3m, a slight increase on H1 2023
when it was £1.2m. This was a reflection of a reduction in gross margin (31%
in H1, 2024 vs 37% in H1, 2023), as well as an increase in staff costs as the
Company increased its headcount of both commercial and laboratory staff.
At 30 June 2024, Cash and cash equivalents stood at £4.9m, up from £0.5m at
30 June 2023 following completion of the last fundraise in the second half of
2023.
In the twelve months to 30 June 2024, Eden has invested £2.3m in intangible
assets including development and regulatory costs.
Overall, the Company is pleased to report that it is on track to meet its 2024
market expectations for revenue and operating loss, the key financial metrics
of the business.
Expanding territorial reach, growing the label
With the industry's regulators creating high barriers to entry, our approach
to regulatory affairs and approvals is integral to Eden's growth proposition
and offers a great potential reward to investors willing to back our
innovative technology. Despite the high regulatory hurdles and long lead times
for adoption, we have recently managed to successfully gain important
approvals which expand both the geographies and the range of crop applications
and addressable markets.
2024 began with the welcome news of regulatory authorisation for Mevalone(®)
in California. To put this one approval into context, California is the US's
largest wine region, accounting for approximately 84% of the nation's total
production and, in comparison with the rest of the US, has much stricter
agricultural regulations geared towards sustainable farming practices. Given
the timing of this regulatory approval, we have been able to commence
distributing to grape growers across the state via our commercial partner,
Sipcam. We expect to make meaningful revenues in 2025 as we continue to
develop the commercial and marketing strategy.
In June, Eden received notification from the Spanish regulators that Mevalone,
marketed as Araw® in the region, had received a label expansion to include 22
new crops on 4 new fungal diseases. This newly expanded label makes our
biofungicide one of the most versatile and reliable solutions available to
Spanish farmers to prevent fungal diseases in many crops under both organic
and conventional agriculture. The new approval extends to a large number of
high-value crops that weren't previously on the label, but most notably,
includes almonds which are the third largest tree crop in Spain after olives
and grapes. Furthermore, Spain boasts the largest cultivated area of almond
trees in the world and ranks third in terms of overall production.
Post-period end in August, we were delighted that Mevalone received regulatory
authorisation in Germany, applicable for use on grape vines to control
Botrytis and apples to prevent storage diseases. Germany is widely considered
in the biocontrol markets as one of the strictest regulatory environments
across the EU and more broadly, and our regulatory success here is a great
validation of the strong efficacy of our product, as well as its flexible and
environmentally friendly qualities.
In September, Cedroz was granted, according to Reg. EU/1107/2009, a
temporary approval in Greece for use on potatoes against wireworms for the
2024 growing season.
New products, same technology
Eden's development pipeline remains active across a number of different
projects, all using the same proprietary terpene technology and underlying
microencapsulation technology, SustaineÒ. These products are based on a
desire to replace, or work alongside, conventional pesticide chemistry with
plant-derived alternatives. We have the capacity, capability, and flexibility
with our in-house laboratory facilities and team to be able to adapt our
development to meet the demands of the industry and to also pursue new market
opportunities as they arise.
This in-house expertise has allowed us to accelerate the development of our
new bioinsecticide which would have otherwise been a much longer process had
we needed to contract the work. In June, we announced encouraging results of
our new bioinsecticide which has involved more than 30 laboratory trials and
more than 140 field trials conducted in Europe and the United States. Results
show strong efficacy against all life stages of key pests such as aphids,
spider mites and whiteflies and demonstrate equivalence or superior
performance when compared with registered biological reference products
produced by some of the world's leading biochemical companies.
Eden is now working towards regulatory submissions of our new bioinsecticide
in the US and Europe, which we anticipate will happen in 2024 and 2025,
respectively. Subject to authorisation, first sales of the product could be
achieved as early as 2025 in the US, given our active ingredients have already
been registered at a federal level.
We are also working towards including downy mildew on the Mevalone label for
the first time with an application already submitted in France. With key
competitor products being removed from the market, or in some cases, already
withdrawn, we see a significant opportunity to address an unmet need. We
anticipate a positive verdict in early 2025, subject to regulatory timelines.
Strengthening our team
Driving sustainable innovation through the development of new products using
our unique, patented technologies is a fundamental aspect of creating value
for shareholders. Since our move to Oxfordshire in 2020, we have benefited
tremendously from the ability to bring our biopesticide and biocontrol
development in-house and accelerate timelines that would have otherwise been
significantly slower. To continue to accelerate growth, we have elected to
make key hires across specific mandates.
The first of these key appointments came in June 2024, when we appointed
Humair Tariq as our Global Commercial Lead. Humair joined Eden from Syngenta
where he spent the past 12 years working across a number of remits across the
firm's pesticide division. Humair assumes a new role which is specifically
dedicated to fostering the Company's existing partnerships, developing new
relationships with potential partners, and driving revenue growth through both
the expansion of our existing business and the pursuit of new opportunities.
Since the end of the first half, we are also pleased to welcome Daniel Mulas
García as the Company's new Global Product and Marketing Lead. Daniel holds a
wealth of industry experience from his time working as a product manager of
biostimulants and biocontrol for one of Eden's most important commercial
partners, Sipcam Oxon. Daniel's focus at Eden is on ensuring that our current
and future products are well-aligned with the needs of farmers in an
ever-changing regulatory and commercial environment, as well as maximising
revenue growth through the pursuit of ongoing expansions of the Company's
product portfolio.
Finally, Ilshad Moulan joined Eden as our new Head of Regulatory Affairs last
month. Ilshad worked at a specialist product registration consultancy where he
led a team of nine, focusing on regulatory affairs. Ilshad succeeds Dr Mike
Carroll who will retire at the end of a handover period. Mike has served as
Eden's first-ever regulatory leader and played a key role in not only
establishing Eden's in-house regulatory capabilities but also in successfully
securing the many regulatory authorisations the Company now holds.
At a Board level, we saw the appointment of Derek McAllan as a new
non-executive director and Chairman of the Audit Committee. He takes over from
Robin Cridland who has undertaken this duty for the past nine years. Robin
continues to advise the Board in his capacity as a non-executive director. At
the start of the year, we also saw the departure of Richard Horsman who
stepped down as a non-executive director following an 18-month stint, during
which he made significant contributions to the Company at a pivotal time.
Outlook
We anticipate the remainder of the year will provide plenty of reasons for
excitement. Eden is exploring various options to reintroduce its sustainable
seed treatment, Ecovelex, on an emergency authorisation basis following
success in Italy in 2023. We anticipate full Ecovelex authorisation in the EU
in 2025. We are also looking into the potential for deploying Ecovelex on
other grain and cereal crops such as sweetcorn.
On the regulatory front, Eden is working closely with Sipcam towards
submitting regulatory applications for Mevalone and Cedroz in new frontier
markets such as Argentina, Brazil, and Chile. We expect to update the market
with our progress in due course.
Ahead of the launch of our bioinsecticide, we expect to appoint a commercial
partner to help prepare the product for regulatory submission in the coming
months. This has been a highly competitive process which has so far involved
more than 11 potential partners covering a range of global opportunities.
I'd like to take this opportunity to thank our team for all their effort so
far this year in what has been a very busy period for the Company. I would
also like to extend my gratitude to all our shareholders and the Board for
their continued support.
Sean Smith
Chief Executive Officer
20 September 2024
Eden Research plc - Consolidated Statement of Comprehensive Income for the six
months ended 30 June 2024
Six Six Year ended 31 December 2023
months ended 30 June 2024 £ unaudited months ended 30 June 2023 £ unaudited £
audited
Revenue (note 18) 1,885,929 1,142,371 3,192,027
Cost of sales (1,292,117) (710,337) (1,426,547)
Gross profit 593,812 432,034 1,765,480
Administrative expenses (1,701,968) (1,250,541) (2,997,633)
Other operating income 4,199 - 20,689
Amortisation of intangible assets (150,508) (264,557) (418,651)
Share based payments (note 17) (79,666) (119,083) (236,576)
Operating loss (1,334,131) (1,202,147) (1,866,691)
43,884 181 34,014
Investment revenues (6,068) (9,539) (17,207)
Finance costs (8,994) 11,857 (68,802)
Foreign exchange gains/(losses) - (4,968,529) (4,968,529)
Impairment of intangible assets (note 9)
Share of loss of equity accounted investee, net of tax (note 10) (3,350) (25,111) (33,047)
Loss before taxation (1,308,659) (6,193,288) (6,920,262)
Income tax income 395,778 317,230 428,326
Loss for the financial period (912,881) (5,876,058) (6,491,936)
Attributable to: (916,128) (5,887,194) (6,491,936)
Equity holder of the company
Non-controlling interest 3,247 11,136 2,313
Total Comprehensive Income (912,881) (5,876,058) (6,491,936)
Earnings per share (note 7)
Basic (pence per share) (0.17) (1.54) (1.54)
Eden Research plc - Consolidated Statement of Financial Position as at 30 June
2024
30 June 2024 30 June 2023 31 Dec 2023
£ £ £
unaudited unaudited audited
NON-CURRENT ASSETS
Intangible assets (note 9) 5,620,863 3,641,058 4,710,511
Property, plant & equipment (note 12) 231,997 167,175 230,091
Right of Use assets (note 13) 144,769 265,141 212,437
Investments in associate (note 10) 293,847 305,133 297,197
6,291,476 4,378,507 5,450,236
CURRENT ASSETS
Inventories (note 14) 618,190 651,394 964,552
Trade and other receivables (note 15) 2,463,758 930,000 2,449,623
Taxation 712,978 640,946 317,201
Cash and cash equivalents 4,947,303 492,766 7,413,107
8,742,229 2,715,106 11,144,483
CURRENT LIABILITIES
Trade and other payables (note 16) 2,161,728 1,818,582 2,819,153
Lease liabilities 139,773 138,808 142,849
2,301,501 1,957,390 2,962,002
NET CURRENT ASSETS 6,440,728 757,716 8,182,481
NON-CURRENT LIABILITIES
Lease liabilities 19,622 147,780 86,920
19,622 147,780 86,920
NET ASSETS 12,712,582 4,988,443 13,545,797
EQUITY
Called up share capital 5,333,529 3,811,089 5,333,529
Share premium account 6,413,652 39,308,529 6,413,652
Warrant reserve 664,892 640,741 758,234
Retained earnings 270,447 (38,807,554) 1,013,567
Non-controlling interest 30,062 35,638 26,815
TOTAL EQUITY 12,712,582 4,988,443 13,545,797
Eden Research plc - Consolidated Statement of Changes in Equity as at 30 June
2024
Non-control-ling interest
Share capital Share premium Merger reserve Warrant reserve Retained earnings
Total
£ £ £ £ £ £ £
Six months ended 30 June 2024
Balance at 1 January 2024 (audited) 5,333,529 6,413,652 - 758,234 1,013,567 26,815 13,545,797
(Loss) - - - - (916,128) 3,247 (912,881)
/profit and total comprehensive income
Transactions with owners
- Options granted - - - 79,666 - - 79,666
- Options exercised/ lapsed - - - (173,008) 173,008 - -
Transactions with owners - - - (93,342) 173,008 - -
Balance at 30 June 2024 (unaudited) 5,333,529 6,413,652 - 664,892 270,447 30,062 12,712,582
Six months ended 30 June 2023
Balance at 1 January 2023 3,808,589 39,308,529 10,209,673 701,065 (43,309,440) 24,502 10,742,918
(audited)
(Loss)/profit and total comprehensive income - - - - (5,887,194) 11,136 (5,876,058)
Transactions with owners
- Transfer of merger reserve
- Options granted - - (10,209,673) - 10,209,673 - -
- - - 119,083 - - 119,083
- Options exercised/lapsed 2,500 - - (179,407) 179,407 - 2,500
Transactions with owners - - (10,209,673) (60,324) 10,389,080 - 2,500
Balance at 30 June 2023 (unaudited) 3,811,089 39,308,529 - 640,741 (38,807,554) 35,638 4,988,443
Eden Research plc - Consolidated Statement of cash flows for the six months
ended 30 June 2024
Six months Six months
ended ended Year ended 31
30 June 2024 30 June 2023 December 2023
£ £ £
unaudited unaudited audited
Cash flows from operating activities
Cash outflow from operations (note 8) (1,306,694) (1,018,716) (2,130,252)
R&D tax credit received 1 - 434,841
Net cash used in operating activities (1,306,693) (1,018,716) (1,695,411)
Cash flows from investing activities
Development of intangible assets (1,060,860) (426,918) (1,650,465)
Purchase of property, plant and equipment (48,649) (1,875) (102,391)
Interest received 43,884 181 34,014
Net cash used in investing activities (1,065,625) (428,612) (1,718,842)
Cash flows from financing activities
Issue of shares - 2,500 9,058,239
Payment of lease liabilities (79,108) (59,196) (139,539)
Interest on lease liabilities (5,383) (9,539) (17,009)
Net cash used in financing activities (84,491) (66,235) 8,901,690
Decrease in cash and cash equivalents (2,456,810) (1,513,563) 5,487,437
Cash and cash equivalents at
beginning of period 7,413,107 1,994,472 1,994,472
Effect of exchange rate fluctuations on cash held
(8,994) 11,857 (68,802)
Cash and cash equivalents at
end of period 4,947,303 492,766 7,413,107
Cash and cash equivalents comprise bank account balances.
Notes to the Interim Results
1. Reporting Entity
Eden Research plc is a public limited company incorporated in the United
Kingdom under the Companies Act 1985. The Company is domiciled in the United
Kingdom and is quoted on the Alternative Investment Market (AIM).
These condensed consolidated interim financial statements ('Interims') as at
and for the six months ended 30 June 2024 comprise the Company and its
Subsidiaries (together referred to as 'the Group'). The principal activities
of the Group are the development and commercialisation of encapsulation,
terpenes and environmentally friendly technologies to provide naturally
occurring solutions for the global agrochemicals, animal health, and consumer
product industries.
2. Basis of Preparation
These Interims have been prepared in accordance with IAS 34 'Interim Financial
Reporting' and should be read in conjunction with the Group's last annual
consolidated financial statements as at and for the year ended 31 December
2023 which were approved by the Board of Directors on 2 May 2024 and have been
delivered to the Registrar of Companies. The report of the auditors on those
financial statements was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of the Companies
Act 2006.
The Interims do not include all of the information required for a complete set
of financial statements prepared under UK-adopted International Accounting
Standards and do not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006. However, selected explanatory notes are
included to explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and performance
since the last annual financial statements.
Comparative information in the Interims as at and for the year ended 31
December 2023 has been taken from the published audited financial statements
as at and for the year ended 31 December 2023. All other periods presented are
unaudited.
The Board of Directors and the Audit Committee approved the interims on 20
September 2024.
3. Going Concern
The Directors have, at the time of approving the Interims, a reasonable
expectation that the Group has adequate resources to continue in operational
existence for at least 12 months from the approval of the financial
statements. Thus, the Interim financial statements have been prepared on a
going concern basis which contemplates the realisation of assets and the
settlement of liabilities in the ordinary course of business.
The Group has reported a loss for the first half of the year after taxation of
£912,881 (H1 2023: £5,876,058). Net current assets at that date amounted to
£6,440,728 (H1 2023: £757,716). Cash at that date amounted to £4,947,303
(H1 2023: £492,766). The Group is reliant on its current cash balance to fund
its working capital.
The Directors have prepared budgets and projected cash flow forecasts, based
on forecast sales provided by Eden's distributors where available, for a
period of at least 12 months from the date of approval of the Interims and
they consider that the Company and Group will be able to operate with the cash
resources that are available to it for this period.
The forecasts adopted include only revenue derived from existing contracts.
They do not include potential upside from on-going discussions and
negotiations with other parties not yet contracted, as well as other 'blue
sky' opportunities.
In addition, the Group has relatively low fixed running costs and, while
mitigating actions are not forecast to be required to support the going
concern basis, the Directors have previously demonstrated their ability to
postpone certain other costs, such as Research and Development expenditure, in
the event of unforeseen cash constraints and are willing and able to delay
costs in the forecast period should the need arise.
Furthermore, in July 2023, Eden completed a firm Capital Raising of £1.1
million and Retail Offer of £0.4 million (July 2023) together with a
Conditional Capital Raising of £7.9 million, all before expenses.
Consequently, the Directors are confident that the Company will have
sufficient funds to continue to meet its liabilities as they fall due for at
least 12 months from the date of approval of the half year report and
therefore have prepared the half year report on a going concern basis.
4. Adoption of new and revised standards and changes in
accounting policies
These condensed consolidated Interims have been prepared in accordance with
the accounting policies adopted in the last annual financial statements for
the year to 31 December 2023.
The accounting policies have been applied consistently for the purposes of
preparation of these condensed Interims.
5. Principal risks and uncertainties
The Company's prime risk is the on-going commercialisation of its intellectual
property, which involves testing of the Company's products, obtaining
regulatory approvals and reaching a commercially beneficial arrangement for
each product to be taken to market. This is measured by comparing actual
results with forecasts that have been agreed by the Company's Board of
Directors.
The Company's credit risk is primarily attributable to its trade receivables.
Credit risk is managed by running credit checks on customers and by monitoring
payments against contractual agreements.
The Company monitors cash flow as part of its day-to-day control procedures.
The Board considers cash flow projections at its meetings and ensures that the
Company has sufficient cash resources to meet its on-going cash flow
requirements.
Due to the nature of the business, there is inherent risk of infringement of
Eden's intellectual property rights by third parties. The risk of infringement
is managed by taking (and acting on) the relevant legal advice as and when
required.
There is also inherent uncertainty surrounding the regulatory approval of
products in terms of both timing and outcome. This risk is managed by
retaining appropriately experienced staff and contracting with expert
consultants as needed.
Full details of the principal risks and uncertainties can be found in the
Strategic Report in the Company's 2023 Annual Report.
6. Ukraine
Eden does not currently have any business activities in Russia or Ukraine and,
as such, has not experienced, nor does it expect, any direct impact on its
business.
The knock-on effect of the conflict on other countries is still being
understood, though we do not envisage significant disruption to the current
business in the short term.
7. Earnings per share
Six months ended Six months ended Year ended
30 June 2024 30 June 2023 31 December 2023
Pence unaudited Pence unaudited Pence
audited
(Loss)/profit per ordinary share (pence) - basic (0.17) (1.54) (1.54)
Loss per share - basic has been calculated on the net basis on the loss after
tax of £912,881 (30 June 2023: £5,876,058, 31 December 2023: £6,491,936)
using the weighted average number of ordinary shares in issue of 533,352,523
(30 June 2023: 380,912,474, 31 December 2023: 420,921,123).
Diluted earnings per share has not been presented as the Group is currently
loss making and as a result, any additional equity instruments have the effect
of being anti-dilutive.
8. Reconciliation of loss before income tax to cash used by
operations
Six months ended Six months ended
30 June 2024 30 June 2023 Year ended
£ £ 31 December 2023
unaudited unaudited £
audited
(Loss)/profit after tax (912,881) (5,876,058) (6, 491,936)
Adjustments for:
Share of associate's losses 3,350 25,111 33,047
Amortisation charges 150,508 264,557 5,387,180
Impairment of intangible assets - 4,968,529 -
Share based payment charge 79,666 119,083 236,576
Depreciation of property, plant and equipment and right of use assets
114,411 101,159 206,426
Finance costs 5,383 - 17,009
Foreign exchange currency losses/(gains) 8,994 (11,857) 68,802
Finance income (43,884) (181) (34,014)
Tax credit (395,778) (317,230) (428,326)
Inventory provision - - -
Doubtful debt provision - - -
Movements in working capital:
(Increase)/decrease in trade and other receivables (14,135) (271,134) (1,790,757)
(Decrease)/ Increase in trade and other payables (648,690) 5,241 1,004,833
Decrease/(increase) in inventory 346,362 (25,936) (339,094)
Cash used by operations (1,306,694) (1,018,716) (2,130,252)
9. Intangible assets
Intellectual property Licences and trademarks Development Costs Total
£ £ £ £
COST
At 1 January 2023 9,507,057 456,684 9,074,031 19,037,772
Additions - - 426,918 426,918
At 30 June 2023 9,507,057 456,684 9,500,949 19,464,690
Additions 45,166 - 1,178,381 1,223,547
At 31 December 2023 9,552,223 456,684 10,679,330 20,688,237
Additions - - 1,060,860 1,060,860
At 30 June 2024 9,552,223 456,684 11,740,190 21,749,097
AMORTISATION
At 1 January 2023 7,146,975 450,192 2,993,379 10,590,546
Charge for the period 132,588 780 131,189 264,557
Impairment charge for the period
1,705,122 2,545 3,260,862 4,968,529
At 30 June 2023 8,984,685 453,517 6,385,430 15,825,242
Charge for the period 30,864 608 122,622 152,484
At 31 December 2023 9,015,549 454,125 6,508,052 15,977,726
Charge for the period 33,372 522 116,614 150,508
At 30 June 2024 9,048,921 454,647 6,624,666 16,128,234
CARRYING AMOUNT
At 30 June 2024 503,302 2,037 5,115,524 5,620,863
At 31 December 2023 536,674 2,559 4,171,278 4,710,511
At 30 June 2023 522,372 3,167 3,115,519 3,641,058
Impairment review
Full details of the impairment review and subsequent charge in 2023 can be
found in the Company's 2023 Annual Report and Accounts.
Given that the Company has recently completed an impairment review as part of
its 2023 audit and since there have been no indicators of impairment
subsequent to that, as well as positive events, such as the authorisation of
Mevalone in California, Germany and Czechia, and label extension for Mevalone
in Spain, the Board is satisfied that an impairment review is not required at
this point.
The Board will continue to assess the carrying value of its intangible assets
on a regular basis to check for any indications of impairment.
10. Investment in associate
Six months ended Six months ended Year ended
30 June 2024 30 June 2023 31 December 2023
unaudited unaudited audited
Percentage ownership interest
and proportion of voting rights 29.90% 29.90% 29.90%
£ £ £
Non-current assets 284,742 347,094 315,918
Current assets 360,750 340,873 311,599
Non-current liabilities (468) (57,155) (23,819)
Current liabilities (328,661) (386,531) (309,349)
Net assets (100%) 316,363 244,281 294,349
Company's share of net assets 94,593 73,040 88,010
Separable intangible assets 86,126 118,965 96,059
Goodwill 412,649 412,649 412,649
Impairment of investment in associate (299,521) (299,521) (299,521)
Carrying amount of interest in associate 293,847 305,133 297,197
Revenue 434,230 297,304 515,647
Profit/(loss) from continuing operations 13,158 (59,620) (61,802)
Post tax profit from discontinued operations - - -
100% of total post-tax profits 13,158 (59,620) (61,802)
29.9% of total post-tax profits (3,934) (17,827) (18,479)
Amortisation of separable intangible (7,284) (7,284) (14,568)
assets
Company's share of loss including amortisation of separable intangible asset (3,350) (25,111) (33,047)
11. Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking Country of incorporation Ownership interest (%) Voting power held (%) Nature of business
TerpeneTech Limited Republic of Ireland 50.00 50.00 Sale of biocide products
Eden Research Europe Limited Republic of Ireland Dormant
100.00 100.00
TerpeneTech Limited ("TerpeneTech (Ireland))", whose registered office is 108
Q House, Furze Road, Sandyford, Dublin, Ireland, was incorporated on 15
January 2019 and is jointly owned by both Eden Research Plc and TerpeneTech
(UK), the company's associate.
Eden has the right to appoint a director as chairperson who will have a
casting vote, enabling the Group to exercise control over the Board of
Directors in the absence of an equivalent right for TerpeneTech (UK). Eden
owns 500 ordinary shares in TerpeneTech (Ireland).
Eden Research Europe Limited, whose registered office is 108 Q House, Furze
Road, Sandyford, Dublin, Ireland, was incorporated on 18 November 2020 and is
wholly owned by both Eden Research plc.
Non-controlling interests
The following table summarises the information relating to the Group's
subsidiary with material non-controlling interest, before intra-group
eliminations:
30 June 30 June 2023 31 Dec 2023
2024
£ £ £
unaudited unaudited audited
NCI percentage 50% 50% 50%
Non-current assets 73,019 86,291 79,655
Current assets 100,310 34,983 56,887
Non-current liabilities - - -
Current liabilities (197,208) - (166,914)
Net assets/(liabilities) (23,879) 121,274 (30,372)
Carrying amount of NCI -
Revenue 43,423 28,907 50,811
Profit/(loss) 6,493 22,271 4,625
OCI - - -
Total comprehensive income 6,493 22,271 4,625
Share of NCI (50% of net Total comprehensive income) 3,247 11,136 2,313
Cash flows from operating activities - - -
Cash flows from investment activities - - -
Cash flows from financing activities - - -
Net increase/(decrease) in cash and cash equivalents - - -
Dividends paid to non-controlling interests - - -
12. Property, plant and equipment
Land and buildings
Total
£ £
COST
At 1 January 2023 332,956 332,956
Additions 1,875 1,875
At 30 June 2023 334,831 334,831
Additions - owned 100,516 100,516
At 31 December 2023 435,347 435,347
Additions 48,649 48,649
At 30 June 2024 483,996 483,996
AMORTISATION
At 1 January 2023 134,170 134,170
Charge for the period 33,486 33,486
At 30 June 2023 167,656 167,656
Charge for the period 37,600 37,600
At 31 December 2023 205,256 205,256
Charge for the period 46,743 46,743
At 30 June 2024 251,999 251,999
CARRYING AMOUNT
At 30 June 2024 231,997 231,997
At 31 December 2023 230,091 230,091
At 30 June 2023 167,175 167,175
13. Right of use assets
Land and buildings
Vehicles Total
£ £ £
COST
At 1 January 2023 443,777 137,436 581,213
Additions - - -
At 30 June 2023 443,777 137,436 581,213
Additions - 14,963 14,963
Disposals - (22,282) (22,282)
At 31 December 2023 443,777 130,117 573,894
At 30 June 2024 443,777 130,117 573,894
AMORTISATION
At 1 January 2023 210,741 37,658 248,399
Charge for the period 45,438 22,235 67,673
Eliminated on disposal - - -
At 30 June 2023 256,179 59,893 316,072
Charge for the period 45,438 22,229 67,667
Eliminated on disposal - (22,282) (22,282)
At 31 December 2023 301,617 59,840 361,457
Charge for the period 45,438 22,230 67,668
At 30 June 2024 347,055 82,070 429,125
CARRYING AMOUNT
At 30 June 2024 96,722 48,047 144,769
At 31 December 2023 142,160 70,277 212,437
At 30 June 2023 187,598 77,543 265,141
14. Inventories
30 June 31 December
30 June 2024 2023 2023
£ £ £
Raw materials 355,348 533,227 149,644
Goods in transit - - 27,736
Finished goods 262,842 118,167 787,172
618,190 651,394 964,552
Inventory above is shown net of a provision off
Provision for obsolete inventory - 76,250 -
- 76,250 -
15. Trade and other receivables
30 June 31 December
30 June 2024 2023 2023
£ £ £
Trade receivables 1,609,698 479,311 1,788,151
VAT recoverable 361,566 252,336 386,684
Other receivables 160,328 99,140 112,375
Prepayments and accrued income 332,166 99,213 162,413
2,463,758 930,000 2,449,623
Trade receivables are shown net of a provision for doubtful debt of:
Provision for doubtful debt - 107,188 -
- 107,188 -
Trade receivables disclosed above are measured at amortised cost. The
Directors consider that the carrying amount of trade and other receivables
approximates their fair value.
16. Trade and other payables
30 June 31 December
30 June 2024 2023 2023
£ £ £
Trade payables 1,720,027 1,171,433 1,925,559
Accruals and deferred income 184,157 420,310 640,342
Social security and other taxation 62,911 55,434 56,841
Other payables 194,633 171,405 196,411
2,161,728 1,818,582 2,819,153
17. Share based payments
Long-Term Incentive Plan ("LTIP")
Since September 2017 Eden has operated an option scheme for Executive
Directors, senior management and certain employees under an LTIP which allows
for certain qualifying grants to be HMRC approved. Details on options issued
in prior periods can be found in the annual report for the year ended 31
December 2023.
Options
Number of share options Weighted average exercise price (pence)
30 Jun 2024 30 Jun 2023 30 Jun 2024 30 Jun 2023
Outstanding at 1 January 23,486,534 16,312,649 8 7
Granted during the period - - - -
Exercised during the period - (250,000) - 1
Lapsed during the period (3,596,432) (3,500,000) 6 6
Exercisable at 30 June 19,890,102 12,562,649 6 8
The exercise price of options outstanding at the end of the period ranged
between 6p and 10.4p (H1 2023: 6p and 10.4p) and their weighted average
contractual life was 2.0 years (H1 2023: 1.4 years).
The share-based payment charge for the period, in respect of options, was
£79,666 (H1 2023: £119,083). The charge in H1, 2024 is in respect of the
options granted in 2023 under a LTIP Award.
During the period, 3,596,432 of options lapsed and £173,008 (H1 2023:
£171,251) was transferred from the warrant reserve to retained earnings.
There were no warrants outstanding at 30 June 2024.
18. Segmental Reporting
IFRS 8 requires operating segments to be reported in a manner consistent with
the internal reporting provided to the chief operating decision-maker. The
chief operating decision-makers, who are responsible for the resource
allocation and assessing performance of the operating segments have been
identified as the Executive Directors as they are primarily responsible for
the allocation of the resources to segments and the assessment of performance
of the segments.
The Executive Directors monitor and then assess the performance of segments
based on product type and geographical area using a measure of adjusted
EBITDA. This is the result of the segment after excluding the share-based
payment charges, other operating income and the amortisation of intangibles.
These items, together with interest income and expense are not allocated to a
specific segment.
The segmental information for the six months ended 30 June 2024 is as follows:
Agrochemicals Consumer products Total
Revenue £ £ £
Milestone payments 165,245 - 165,245
R & D charges - 2,309 2,309
Royalties - 43,423 43,423
Product sales 1,674,952 - 1,674,952
Total revenue 1,840,197 45,732 1,885,929
EBITDA (991,394) 45,732 (945,662)
Share Based Payments (79,666) - (79,666)
Adjusted EBITDA (1,071,060) 45,732 (1,025,328)
Amortisation (143,872) (6,636) (150,508)
Impairment - - -
Depreciation (114,411) - (114,411)
Finance costs, foreign exchange and investment revenues (15,062) - (15,062)
Income Tax 395,778 - 395,778
Share of Associate's loss - (3,350) (3,350)
(Loss)/Profit for the Period (916,231) 35,746 (912,881)
Total Assets 14,860,376 173,329 15,033,705
Total assets includes:
Additions to Non-Current Assets 1,109,509 - 1,109,509
Total Liabilities 2,123,915 197,208 2,321,123
The segmental information for the six months ended 30 June 2023 is as follows:
Agrochemicals Consumer products Total
Revenue £ £ £
Milestone payments - - -
R & D charges - 4,943 4,943
Royalties - 28,907 28,907
Product sales 1,108,521 - 1,108,521
Total revenue 1,108,521 33,850 1,142,371
EBITDA (751,178) 33,850 (717,328)
Share Based Payments (119,083) - (119,083)
Adjusted EBITDA (870,261) 33,850 (836,411)
Amortisation (257,941) (6,636) (264,577)
Impairment (4,968,529) - (4,968,529)
Depreciation (101,159) - (101,159)
Finance costs, foreign exchange and investment revenues 2,499 - 2,499
Income Tax 317,230 - 317,230
Share of Associate's loss - (25,111) (25,111)
(Loss)/Profit for the Year (5,878,161) 2,103 (5,876,058)
Total Assets 6,971,889 121,274 7,093,613
Total assets includes:
Additions to Non-Current Assets 428,793 - 428,793
Total Liabilities 2,085,170 20,000 2,105,170
The segmental information for the year ended 31 December 2023 is as follows:
Agrochemicals Consumer products Total
Revenue £ £ £
Milestone payments - - -
R & D charges 501,324 9,133 510,457
Royalties 17,391 50,811 68,202
Product sales 2,613,368 - 2,613,368
Total revenue 3,132,083 59,944 3,192,027
Adjusted EBITDA (1,064,982) 59,944 (1,005,038)
Share Based Payments (236,576) - (236,576)
EBITDA (1,301,558) 59,944 (1,241,614)
Amortisation (405,379) (13,272) (418,651)
Depreciation (206,426) - (206,426)
Finance costs, foreign exchange and investment revenues (51,995) - (51,995)
Impairment of investment in associate (4,968,529) - (4,968,529)
Income Tax 428,326 - 428,326
Share of Associate's loss - (33,047) (33,047)
(Loss)/Profit for the Year (6,505,561) 13,625 (6,491,936)
Total Assets 16,458,177 136,542 16,594,719
Total assets includes:
Additions to Non-Current Assets 1,730,280 37,539 1,767,819
Total Liabilities 3,048,922 - 3,048,922
Geographical Reporting
Six months ended 30 June 2024 Six months ended 30 June 2023 Year ended 31 December 2023
£ £ £
UK 43,423 33,850 59,944
Europe 1,842,506 1,108,521 3,132,083
1,885,929 1,142,371 3,192,027
The above analysis represents sales to the Group's direct customers who
further distribute these products to their end markets.
All of the non-current assets are in the UK.
19. Subsequent Events
LTIP grant
On 4 July 2024, the Company has made a grant to the Executive Directors, in
respect of 2023 in order to ensure continuity of long term incentive, of
options over 11,918,901 new Ordinary Shares in Eden ("the Options"), at a
strike price of 6.5p each, representing a premium of 48% to the current share
price, in the amounts of 6,805,852 awarded to Sean Smith and 5,113,049
awarded to Alex Abrey.
The Options expire on 30 June 2028 and vest as follows:
1/3 12 months from the date of grant
1/3 24 months from the date of grant
1/3 36 months from the date of grant
Notes to Editors:
Eden Research is the only UK-listed company focused on biopesticides for
sustainable agriculture. It develops and supplies innovative biopesticide
products and natural microencapsulation technologies to the global crop
protection, animal health and consumer products industries.
Eden's products are formulated with terpene active ingredients, based on
natural plant defence metabolites. To date, they have been primarily used on
high-value fruits and vegetables, improving crop yields and marketability,
with equal or better performance when compared with conventional pesticides.
Eden has two products currently on the market:
Based on plant-derived active ingredients, Mevalone(®) is a foliar
biofungicide which initially targets a key disease affecting grapes and other
high-value fruit and vegetable crops. It is a useful tool in crop defence
programmes and is aligned with the requirements of integrated pest management
programmes. It is approved for sale in a number of key countries whilst Eden
and its partners pursue regulatory clearance in new territories thereby
growing Eden's addressable market globally.
Cedroz™( )is a bionematicide that targets free living nematodes which are
parasitic worms that affect a wide range of high-value fruit and vegetable
crops globally. Cedroz is registered for sale on two continents and Eden's
commercial collaborator, Eastman Chemical, is pursuing registration and
commercialisation of this important new product in numerous countries
globally.
Eden's seed treatment product, EcovelexÔ was developed to safely tackle
crop destruction caused by birds - a major cause of losses in maize and other
crops. Ecovelex works by creating an unpleasant taste or odour that repels
birds, leaving the seeds safely intact and the birds unaffected and free to
find alternative food sources. The product is based on Eden's plant-derived
chemistry, registered in the EU, U.S. and elsewhere, and formulated using
Eden's Sustaine® microencapsulation system.
Eden's Sustaine(®)( )encapsulation technology is used to harness the
biocidal efficacy of naturally occurring chemicals produced by plants
(terpenes) and can also be used with both natural and synthetic compounds to
enhance their performance and ease-of-use. Sustaine microcapsules are
naturally-derived, plastic-free, biodegradable micro-spheres derived from
yeast. It is one of the only viable, proven and immediately registerable
solutions to the microplastics problem in formulations requiring
encapsulation.
Eden was admitted to trading on AIM on 11 May 2012 and trades under the
symbol EDEN. It was awarded the London Stock Exchange Green Economy
Mark in January 2021, which recognises London-listed companies that derive
over 50% of their total annual revenue from products and services that
contribute to the global green economy. Eden derives 100% of its total annual
revenues from sustainable products and services.
For more information about Eden, please visit: www.edenresearch.com
(http://www.edenresearch.com/) .
Follow Eden on LinkedIn (https://www.linkedin.com/company/eden-research-plc/)
, Twitter (https://twitter.com/edenresearch) and YouTube
(https://www.youtube.com/@edenresearch580) .
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