REG - MyHealthChecked PLC - Preliminary Results
07/06/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220607:nRSG9017Na&default-theme=true
RNS Number : 9017N MyHealthChecked PLC 07 June 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
MyHealthChecked PLC
("MyHealthChecked" or the "Company")
Preliminary Results
Year Ended 31 December 2021
MyHealthChecked PLC (AIM: MHC), the consumer home-testing healthcare company,
announces its preliminary results for the year ended 31 December 2021.
2021 Highlights
Commercial
● Significant revenue growth over the prior year, up from £50,000 to £16.4m
● Secured agreements with the two top retail high street pharmacy chains and
successfully launched and delivered into a new and unknown category
● MyHealthChecked brand successfully launched and established
● Over 30,000 new direct customers
● Over 5,000 Trustpilot reviews to achieve a 4.3 rating at the year end
Portfolio and accreditation
● Fast track onboarding of The Genome Store in preparation for peak COVID
activity
● Achieved listing on Government website/gov.uk for the COVID-19 private testing
providers for general Testing and Test to Release
● Acquisition of Nell Health in July 2021
● UKAS stage 2 passed in January 2021 with full ISO 15189:2012 accreditation
announced in September 2021
Operational
● Migration across to new digital platform following Nell Health acquisition
● Secure supply chain established successfully underpinning category volatility
● Management of lean overheads
Financial
● Adjusted EBITDA of £2.7m compared to a £2.7m loss in the prior year
● Oversubscribed £3.4m (gross) share placing @ 1.75p in February 2021 which
included further reinvestment by Mercia's investment funds
● Cash generative for the first time with year-end cash balances of £6.4m
The full Group Annual Report and Financial Statements will be available
shortly at www.myhealthcheckedplc.com (http://www.myhealthcheckedplc.com) .
MyHealthChecked PLC www.myhealthcheckedplc.com (http://www.myhealthcheckedplc.com)
Penny McCormick, Chief Executive Officer via Walbrook PR
Nicholas Edwards, Chief Financial Officer
SPARK Advisory Partners Limited (NOMAD) Tel: +44 (0)20 3368 3550
Neil Baldwin
Oberon Capital Ltd (Broker) Tel: +44 (0)203 179 5344
Mike Seabrook mikeseabrook@oberoninvestments.com (mailto:mikeseabrook@oberoninvestments.com)
Walbrook PR Ltd (Media & IR) Tel: +44 (0)20 7933 8780 or myhealthcheckedplc@walbrookpr.com
(mailto:myhealthcheckedplc@walbrookpr.com)
Paul McManus / Alice Woodings Mob: +44(0)7980 541 893 / +44(0)7407 804 654
About MyHealthChecked PLC (www.myhealthcheckedplc.com
(http://www.myhealthcheckedplc.com) )
MyHealthChecked PLC, based in Cardiff, is an AIM-quoted pioneering UK
healthcare company focused on a range of at-home healthcare and wellness
tests.
MyHealthChecked (http://www.myhealthchecked.com) is the umbrella brand of a
range of at-home DNA and RNA tests, now in development following the
acquisition of The Genome Store in November 2020. The tests will be made
available online, and would be viable for over the counter purchase.
The MyHealthChecked portfolio has been identified as part of a change in
mindset as customers become more familiar with the concept of accessible
healthcare in the growing at home testing kit market with a focus on
accessibility at the right price, led by UK-based experts.
CHAIRMAN'S STATEMENT
2021 was a year that delivered record revenue of £16.4m and an adjusted
EBITDA of £2.7m, with net cash being £6.4m at the year end.
Our key focus for 2022 will be the introduction and launch of our DNA
wellbeing products in the first half of 2022. This portfolio will grow as we
enter Q3 and Q4 and will be channelled initially through our
Direct-to-Consumer model.
I would like to take this opportunity to thank all our employees who worked
tirelessly during 2021 to deliver an outstanding result, not only financially
but also in the quality and care of service.
We look forward to delivering further growth and value to shareholders in 2022
and beyond.
Adam Reynolds
Non-Executive Chairman
CHIEF EXECUTIVE'S REPORT AND REVIEW
Last year, in my first CEO review in my new role, I talked about how we had
reshaped the business to deliver against an ambitious growth plan with a clear
runway ahead to revenue achievement. I am proud to say that during 2021 we
have delivered against this aim at every stage. MyHealthChecked has again
evolved significantly over the last year, and we are well-positioned to
deliver further shareholder value in 2022 as we continue to grow the business.
I must give due credit to our fantastic team at MyHealthChecked whose
commitment and professionalism has been outstanding during an incredibly
challenging time for everyone. The team adapted our business model to create a
new retail product line in response to the COVID pandemic and delivered a
phenomenal ramp-up of testing volume through challenging supply chain
conditions. We also successfully integrated The Genome Store business during
the year and acquired Nell Health Limited ("Nell Health") in July 2021. The
team has delivered to an incredibly high standard, and this has been reflected
in the thousands of positive customer reviews we have received, and the
continuing relationships that we have established with the UK's top pharmacy
retailers.
We have moved into 2022 in a position of strength financially, operationally
and with a quickly established reputation for responsive, commercial delivery.
We have exciting longer-term prospects based on a pipeline of new product
introductions, whilst we continue to provide COVID testing services to our key
partners, and I am delighted to update shareholders on our strong performance
over the last year.
Successful commercial delivery - executing on our strategy for growth
The financial performance of the business is the strongest indicator of the
significant step-change that we have delivered over the last year. In 2021 we
recorded revenues of £16.4m (2020: £50k) and delivered an adjusted EBITDA
profit of £2.7m, reversing the £2.7m adjusted EBITDA loss seen in 2020. The
business has been cash generative for the first time in its history and cash
balances at the year-end were £6.39m (2020: £0.47m), which reflected both
good working capital management and stronger than expected cash conversion in
the final quarter.
The main driver of commercial success was the roll-out of our new COVID-19 PCR
nasal swab test kit for at-home use which was adopted by the UK's top two high
street pharmacy retailers. The strong Q4 performance was also supported by the
launch of our COVID-19 rapid antigen test and verification service which saw
us become a distributor of FlowFlex lateral flow assays, adapting neatly with
changing market needs and demonstrating our ability to successfully integrate
third party products alongside our own brand.
Our team also supported a number of smaller travel and institutional
Business-to-Business ("B2B") customers, however it is the opening up of our
own Direct-to-Consumer sales channel which, supported by our investment in
digital marketing and excellent customer service provision, grew to contribute
approximately £2.4m to overall revenues. As the Company has grown, we have
focused on the establishment of our reputable brand with a customer-first
approach to both retail partners and directly with consumers. Our Care Team
has worked tirelessly to ensure that our service excellence is captured,
securing over 5,000 reviews on Trustpilot in 2021 and currently standing at
over 7,000 at the time of writing. Our marketing strategy has been focussed on
effective referral channels and pricing strategies, ensuring that we always
deliver customer value.
Careful cost control and operational excellence
Whilst transforming the operational and commercial capacity of the business to
meet market demands we have kept a tight control of our cost base and have
maximised efficiencies by working closely with key suppliers and maintaining a
flexible and lean team that has delivered extraordinary growth over the last
12 months.
We have continued to ensure that our operational footprint matches our
clients' demands as well as providing the flexibility to expand for future
growth as required. The flexible arrangements at our Cardiff Head office
have allowed us to scale up and scale down through the year without any
detriment to the provision of customer care and dispatch. Our Manchester
laboratory operation, combined with third-party supply from Yourgene Health
PLC ("Yourgene"), allowed us to maintain a reputation for quality of service
with reliable turnaround times that consistently met the requirements of our
customers. It is a mark of the quality of the team that we were able to
achieve ISO 15189 standards within six months of opening the laboratory, and
we consistently achieved 100% for the reliability of patient results and
accuracy of reporting in the SARS CoV-2 External Quality Assurance Programme.
Our facilities were subject to ongoing review by our retail partners, and I am
proud that the team have consistently met their exacting requirements. As part
of an internal review however, in response to a significant downturn in COVID
PCR testing and our drive to remain cost efficient, our laboratory operations
will close in the current quarter whilst we continue to utilise Yourgene's
laboratories, in conjunction with our in-house expertise, to continue building
our scientific and digital portfolio.
Preparation for the launch of a portfolio of personalised wellness tests in H1
2022
Whilst we are still benefitting from our pivot into the provision of COVID-19
rapid antigen tests, a key focus of our business as we have moved into the new
financial year has been on re-investing 2021 earnings into our new product
pipeline of at-home wellness tests and building digital healthcare-centric
technology that is scalable.
The effective integration of Nell Health, acquired in July 2021, has enabled
the migration of our Laboratory Information Management System ('LIMS') onto
the digital platform that will underpin the future business as it expands.
Nell Health provided access to innovative technology in-house, that is secure,
adaptable, and robust for future product and service developments.
This new scalable customer facing e-commerce platform enables connection from
customer through to the lab and facilitates Government required reporting for
COVID testing and has been further enhanced in readiness for the launch of
future tests. We continue to focus on cyber security, and work closely with
our Data Protection Officer to ensure that our systems are robust as we launch
our new app technology that will provide actionable health and nutritional
guidance, tailored to the customer. Our realignment of the goals and strategy
of the business has included the mapping-out of a range of accessible family
healthcare tests, with the aim of helping our customers to take control of
their own healthcare, whilst providing a positive customer experience.
We remain on track to launch five new at-home wellness tests this month,
focussing on the areas of weight management, vitamin deficiency, food
intolerances, heart health and blood glucose. We will be announcing further
portfolio developments through the course of the year to support our clear
business development strategy across Direct-to-Consumer, retail, and B2B
channels and I look forward to updating shareholders on this in due course.
We will continue to explore additional third-party technology options that can
enhance the customer journey and the value of our products, and which can be
integrated by our in-house talent. We also maintain our efforts to identify
and assess complementary earnings-enhancing partnerships with organisations
that demonstrate potential value-add and are a complementary and strategic fit
to our core business.
Whilst COVID-19 was the number one priority for 2021, and portfolio growth is
key to our long-term growth strategy, we will continue to reinforce our strong
reputation in the COVID-19 testing space, providing a high-quality product and
service to our key partners. We will do so whilst consistently evaluating the
cost effectiveness of our operations.
Summary and outlook
Last year I commented that we had ended 2020 and commenced 2021 as a very
different organisation to that of the previous January, and that we were
poised to meet the needs of the market in 2021. I am delighted that we
absolutely met the needs of the market this past year, and I am confident
echoing those comments this year: that we have grown to be a very different
organisation to that of January 2021, commencing 2022 in a stronger position.
Having pivoted the original Concepta business plan, our first year of
commercial delivery has demonstrated that this was the right decision, and we
have delivered a successful start in our journey to an exciting future. Whilst
we did deliberately delay the launch of the wider portfolio of wellness
products until the COVID market stabilised, we have in the meantime
demonstrated our ability to effectively identify the right tests for the
market, secure supplier and customer relationships, and manage challenging
supply chains effectively, whilst remaining competitive on price, and
excelling in customer service and delivery.
We have in place a secure digital platform, a customer base opening up to the
new idea of home-testing, and an existing customer base to whom we can share
our new product information.
2022 will be another exciting year for the business as we launch our initial
portfolio of new tests and build upon our sophisticated digital platform,
which presents a fantastic opportunity for us to grow and create value for our
shareholders. This will be supported by positive trading in the COVID space,
as over the counter consumer demand continues into 2022.
Penny McCormick
Chief Executive Officer
FINANCIAL REVIEW
Income statement
Following the acquisition of The Genome Store in November 2020, the Group was
able to launch the COVID-19 PCR nasal swab test kit for at-home use in
December 2020 which enabled revenues to increase from £50,000 in 2020 to
£16,376,000 with a gross profit margin of 31.3% in the year under review.
Further details are set out in the Chief Executive's Report and Strategic
Review.
Administration costs amounted to £3,079,000 compared to £3,118,000 in the
prior year after expensed research and development expenditure of £175,000
(2020: £487,000). An impairment provision of £414,000 has also been taken in
2021 against the know-how and goodwill arising on the acquisition of The
Genome Store as all testing is now sub -contracted to third parties and the
testing laboratory is being closed. In 2020 the charge was £622,000.
Adjusted EBITDA is calculated as follows:
2021 2020
£'000 £'000
Operating profit/(loss 2,046 (3,758)
Depreciation and amortisation 157 157
Impairment provision (net of DT credit) 414 622
Share based payments 112 103
Loss on disposal of intangible assets - 180
Adjusted EBITDA 2,729 (2,696)
The Group's profit before after taxation was £2,004,000 (2020: £3,763,000
loss) giving a basic earnings per share of 0.28p (2020: loss 0.89p) and fully
diluted earnings per share of 0.27p.
Financial position
The Group's net assets at 31 December 2021 amounted to £7,113,000 (2020:
£530,000). This comprised total assets of £11,668,000 (2020: £1,336,000)
and total liabilities of £4,555,000 (2020: £806,000). The total assets
included property, plant and equipment of £163,000 (2020: £56,000) and
intangible assets, being development costs, know-how, goodwill and patent
costs, of £2,289,000 (2020: £616,000). The significant additions during the
year relate to the goodwill and digital platform acquired on the acquisition
of Nell Health. As noted above an impairment provision was made against the
know-how and goodwill arising on the acquisition of The Genome Store which was
acquired last year.
Cashflow
The Group's cash balance at the year-end was £6,387,000 (2020: £466,000).
The net inflow from operating activities amounted to £3,014,000 (2020:
£2,072,000 outflow) with a further £3,206,000 (2020: £1,960,000) net of
expenses raised through financing activities, whilst the cash outflows from
investing activities amounted to £299,000 (2020: £38,000).
Capital management
The Board's objective is to maintain a balance sheet that is both efficient
and delivers long term shareholder value. The Board continues to monitor the
balance sheet to ensure it has an adequate capital structure.
Events after the reporting year
On 25 March 2022 24,000,000 new ordinary shares of 0.1p each were issued to
settle the deferred contingent consideration payable on the acquisition of The
Genome Store Limited of £240,000 after all performance milestones were met.
Nicholas Edwards
Chief Financial Officer
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For The Year Ended 31 December 2021
2021 2020
£'000 £'000
Revenue from contracts with customers 16,376 50
Cost of sales (11,251) (690)
Gross profit/(loss) 5,125 (640)
Other administrative expenses (2,553) (2,213)
Impairment of intangible assets (414) (622)
Share based payments (112) (103)
Loss on disposal of tangible assets - (180)
Administrative expenses (3,079) (3,118)
Operating profit/(loss) 2,046 (3,758)
Finance expenses (2) (5)
Additional consideration payable on the (40) -
acquisition of The Genome Store Limited
Profit/(loss) before income tax 2,004 (3,763)
Tax charge - -
Profit/(loss) for the year 2,004 (3,763)
Other comprehensive income - -
Total comprehensive Profit/(loss) for the year 2,004 (3,763)
Attributable to owners of the parent: 2,004 (3,763)
Earnings/(loss) per ordinary share - basic 0.28p (0.89p)
Fully diluted earnings per ordinary share 0.27p -
All activities relate to continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As At 31 December 2021
2021 2020
£'000 £'000
Non-current assets
Property, plant and equipment 163 56
Intangible assets 2,289 616
Total non-current assets 2,452 672
Current assets
Inventories 497 3
Trade and other receivables 2,332 195
Cash and cash equivalents 6,387 466
Total current assets 9,216 664
Total assets 11,668 1,336
Current liabilities
Trade and other payables 3,315 384
Deferred tax liability - 87
Lease liabilities - 5
Deferred consideration 1,240 200
Other provisions - 26
Total current liabilities 4,555 702
Non-current liabilities
Loans and borrowings - 104
Total non-current liabilities - 104
Total liabilities 4,555 806
Net assets 7,113 530
Share capital 756 518
Deferred shares 6,359 6,359
Share premium account 16,671 12,442
Share-based payment reserve - 916
Capital redemption reserve 1,815 1,815
Reverse acquisition reserve (6,044) (6,044)
Retained earnings (12,444) (15,476)
Total equity 7,113 530
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share Premium Share-based payment reserve Capital redemption reserve Reverse acquisition Retained earnings Total
reserve
Deferred
shares
£'000 £'000 £'000 £'000 £'000 £'000 £'000
£'000
Equity as at 6,624 10,740 813 1,815 (6,044) (11,713) 2,235
1 January 2020 -
Loss for the year - - - - - (3,763) (3,763)
-
Total - - - - - (3,763) (3,763)
comprehensive loss -
Issue of shares net of expenses 253 1,702 - - - - 1,955
-
Share-based payments - - 103 - - - 103
-
Sub-division of ordinary shares to deferred shares (6,359) - - - - - -
6,359
Equity as at 518 12,442 916 1,815 (6,044) (15,476) 530
31 December 2020 6,359
Profit for the year - - - - - 2,004 2,004
-
Total - - - - - - 2,004 2,004
comprehensive profit
Transfer from share based payment reserve - - (916) - - 916 -
-
Issue of shares net of expenses 194 2,979 - - - - 3,173
-
Conversion of loan note and interest 13 92 - - - - 105
Exercise of options 2 - 18 - - - - 20
Other share issue 1 16 - - - - 17
Share-based payments - - - - - 112 112
-
Acquisition of Nell Health Limited 28 1,124 - - - - 1,152
Equity as at 756 16,671 - 1,815 (6,044) (12,444) 7,113
31 December 2021 6,359
CONSOLIDATED STATEMENT OF CASH FLOWS
For The Year Ended 31 December 2021
2021 2020
£'000 £'000
Cash flows from operating activities
Profit/(loss) before taxation 2,004 (3,763)
Adjustments for:
Deferred consideration 40 -
(Decrease)/increase in provisions (26) 26
Depreciation and amortization 157 157
Impairment of intangible assets 414 622
Finance expenses 2 5
Share-based payments 112 103
Loss on sale of asset - 180
Adjusted operating profit/(loss) before changes in working capital 2,703 (2,670)
Changes in working capital
(Increase)/decrease in inventory (494) 381
Increase in trade and other receivables (2,124) (72)
Increase in trade and other payables 2,931 116
Cash generated/(used) in operations 3,016 (2,245)
Tax received - 178
Other interest (2) (5)
Net cash inflow/(outflow) from operating activities 3,014 (2,072)
Investing activities
Acquisition of Nell Health Limited (50) -
Purchase of property, plant and equipment (147) (35)
Purchase of intangible assets (102) (3)
Net cash flows used in investing activities (299) (38)
Financing activities
Issue of ordinary shares (net of issue expenses) 3,211 1,675
Convertible loan note - 101
Sale of assets - 285
Repayment of lease liability (5) (101)
Net cash flows from financing activities 3,206 1,960
Net change in cash and cash equivalents 5,921 (150)
Cash and cash equivalents at the beginning of the year 466 616
Cash and cash equivalents at the end of the year 6,387 466
NOTES TO THE FINANCIAL STATEMENTS
The notes to the Financial Statement are available in full in the Group Annual
Report and Financial Statements which will be available shortly on the Company
website: www.myhealthcheckedplc.com (http://www.myhealthcheckedplc.com)
Basis of preparation
The financial statements have been prepared in accordance with UK adopted
international accounting standards (IFRS), and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS
Earnings/(loss) per share
2021 2020
Basic and diluted
Profit/(loss) for the year and earnings used in basic & diluted EPS £2,004,000 (£3,763,000)
Weighted average number of shares - basic 710,852,000 420,757,000
Weighted average number of shares - fully diluted 744,056,000 -
Earnings/(loss) per share 0.28p (0.89p)
Fully diluted earnings per share 0.27p -
Basic earnings per share is calculated by dividing the loss attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year. Due to the loss in the prior year the
effect of the share options was considered anti-dilutive and hence no diluted
loss per share information has been provided.
Events after the reporting date
On 25 March 2022 24,00,000 new ordinary shares of 0.1p were issued to settle
the deferred consideration payable on the acquisition of The Genome Store
Limited of £240,000 after all performance milestones were met.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR UPUPCQUPPGQQRecent news on Myhealthchecked
See all newsREG - MyHealthChecked PLC - Trading Update
AnnouncementREG - MyHealthChecked PLC - Holding(s) in Company
AnnouncementREG - MyHealthChecked PLC - Grant of Options
AnnouncementREG - MyHealthChecked PLC - Half-Year Report
AnnouncementREG - MyHealthChecked PLC - Notice of Results
Announcement