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REG - MyHealthChecked PLC - Preliminary Results

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RNS Number : 0385V  MyHealthChecked PLC  03 April 2023

 

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 2022

 

MyHealthChecked PLC (AIM: MHC), the consumer home-testing healthcare company,
announces its preliminary results for the year ended 31 December 2022, a
successful year with strong revenue growth and profitability achieved for the
second consecutive year, driven by significant demand from the top high street
pharmacy retailers for COVID Lateral Flow Tests ("LFTs").

 

MyHealthChecked remains focused on delivering high-quality wellness testing
solutions and guidance to meet the evolving needs of our customers and help
them navigate this new and exciting space.

 

 

Financial highlights

 ●    Revenue up 36% to £22.3m (2021: £16.4m)
 ●    Gross Profit of £4.6m (2021: £5.1m)
 ●    Adjusted EBITDA of £2.3m (2021: £2.7m) - reflecting the change in product
      mix away from higher margin PCR testing to the distribution of LFTs
 ●    Net cash generated from operating activities of £1.6m (2021: £3.0m)
 ●    Cash balance at year end of £7.6m (2021: £6.4m) - whilst continuing to
      invest across the business for future growth
 ●    Strong cash position to ensure next growth phases remain self-funded

Commercial and operational highlights

 ●    Actively developing B2B2C customer relationships in preparation to launch an
      expanded portfolio of at-home wellness tests nationwide in 2023
 ●    Soft launch of initial DNA at-home wellness portfolio in July 2022
 ●    Reinvestment of earnings into developing new products for pipeline of at-home
      wellness tests and building scalable, digital healthcare-centric technology
 ●    Capabilities strengthened by establishing key relationships with high-quality
      laboratory and kit-build partners
 ●    Working towards ISO 27001 and migration of digital Quality Management System
      ('QMS') to support key compliance activity including transition to the
      requirements of the In Vitro Diagnostics Regulation ("IVDR").

 

The full Group Annual Report and Financial Statements will be posted to
shareholders today, together wth the notice of the AGM, and will also be
available shortly at www.investors.myhealthcheckedplc.com
(http://www.investors.myhealthcheckedplc.com) .

 

 

Penny McCormick, Chief Executive Officer of MyHealthChecked PLC, said: "MHC
has not only established itself as a player in the wellness industry but has
also achieved excellent financial results in the last two years. Our
commitment to innovation, customer satisfaction, and financial stability and
management has set us on a path to delivering our goal of sustained liquidity.
As we enter an investment phase, we are confident in our ability to execute
our plans and scale our operations to meet the demand of our growing customer
base. With a robust balance sheet and a team of highly skilled professionals,
we are well-positioned to deliver a solid business in 2023 and beyond. The
upcoming launch of new tests and further development of our digital platform
presents a strong opportunity to create value for our shareholders and
solidify our position as a leading wellness company."

 

Investor Presentation

Penny McCormick, Chief Executive Officer and Nicholas Edwards, Chief
Financial Officer, will provide a live presentation relating to the
preliminary results via the Investor Meet Company platform today (Monday 3
April 2023) at 4:30pm BST. The presentation is open to all existing and
potential shareholders.

 

Investors can sign up to Investor Meet Company for free and register for the
presentation via the link below:

https://www.investormeetcompany.com/myhealthchecked-plc/register-investor
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_myhealthchecked-2Dplc_register-2Dinvestor&d=DwMF-g&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=RXEgD2sy17iU21u6z4qOYU9uK8WGQ51N8K4QC3EH2Vk&m=DCSKgk93brPCPByveWXCbtSpix8rPXHizTENaAlj1N4&s=oRdbQWH1sa_h0HLjZZujH45KVSwoXKDWzZfdGEHM4V0&e=)

 

 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

 Dowgate Capital Limited (Broker)                                   Tel: +44 (0)20 3903 7715
 David Poutney / Nicholas Chambers

 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 is the umbrella brand of a range of at-home rapid tests, as
well as DNA, RNA and blood sample collection kits which have been created to
support customers on their journeys to wellness. The tests are lateral-flow
self-tests, and the sample collection kits enable the collection of blood,
urine, nasal or mouth swab samples that are analysed in partner laboratories
for a range of biomarkers. The tests will also be made available online and
will 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.

JOINT CHAIRMAN AND CHIEF EXECUTIVE'S REPORT

MyHealthChecked has had a successful year in 2022, with strong revenue growth
and profitability achieved for the second consecutive year. We surpassed
management expectations with our financial performance, maintaining a reliable
track record of delivery for our valued retail customers and partners.

Despite the unpredictable demand for our services throughout the challenging
COVID period, we were able to deliver and meet the high demands of our
customers in terms of volume. Our revenue increased by £5.9m (36%) to
£22.3m, and this growth has enabled us to achieve our ultimate goal of a
second year of positive cash flow. We ended the year with a cash balance of
£7.6m (2021: £6.4m), providing us with substantial working capital to drive
the business forward in 2023 and beyond.

It's a very exciting time for consumer healthcare and specifically testing,
and in our many years in the consumer healthcare and testing space, we have
never felt so energised around the potential for consumer self-testing. We are
excited about how this can positively impact the lives of millions as we
embrace preventative methods of care, can make a major difference to
individuals' lives, and ultimately release the pressure on much strained
healthcare services. Never before has there been so much information and
guidance available for us to make informed decisions on how we reduce our
future risks.

As we navigate this dynamic period of behavioural change, MHC remains focused
on delivering high-quality wellness testing solutions and guidance to meet the
evolving needs of our customers and help them navigate this new and exciting
space.

COVID-19 testing

COVID has been a major catalyst for this change in customer behaviour, and in
the past two years we have seen the market dominated by COVID testing. This
familiarisation of both self-testing and laboratory testing has given
customers confidence and normalised testing outside of a medical setting.

Throughout 2021 and 2022, COVID testing has been a major part of our business,
with over 17 million tests delivered to the market this past year.

However, as a result in the shift in product mix from higher margin Polymerase
Chain Reaction ("PCR") testing to lateral flow tests ("LFTs") during the
current year, we have seen gross margins in our COVID portfolio reducing.
However, post period we are launching a new testing portfolio to counter this
trend, whilst we continue to deliver value to our customers.

Retail launches

We are actively developing B2B2C customer relationships and are preparing to
launch an expanded portfolio of at-home wellness tests nationwide. Since the
soft-launch of our initial DNA portfolio in July of last year we have remained
focused on developing our wellness portfolio and supporting our retail
customers in expanding their own commercial strategies to meet their
customers' needs for at-home testing.

Market reports indicate significant growth potential for the home testing
market, with projections indicating the market will reach $45.58 billion by
2031 (source : Allied Market Research Nov 2022, At-Home Testing Market
Research 2031, Author(s) : Vikita T, Shubham S , Onkar S).

In order to play a major role in this market, we have prioritised building
strong relationships with our retail partners, with the goal of reaching as
many end users as possible. Beyond our retail partner launches we plan to
expand our core target base, while keeping a close eye on market trends to
ensure an optimal user journey, and positioning ourselves as cost-effective
and understanding of the current economic climate.

Product portfolio

Amid the challenges of the COVID era, we positioned ourselves as a leading
provider of products and services to meet the demand for testing - and we
succeeded. Our unique multi-platform portfolio of tests offers users access to
a variety of test types, sample collection options, and levels of analysis,
enabling us to meet diverse customer needs. Whether a customer requires an
initial screener, a lab analysis, or a DNA assessment, our tests provide
reliable results and guidance that empower our customers to make positive
changes to their nutrition and lifestyle.

But we don't stop there in our mission to improve our customers' health in the
longer term. Our tests are not just end-products, but tools that open up a
dialogue with the customer and facilitate the building of a long-term
relationship based on guidance, support, and monitoring. We don't simply
provide test results; through our evolving digital platform we are providing a
supportive relationship and guidance to ensure our customers achieve their
wellness goals.

As a result of our careful cash control, we have entered another new financial
year in a position of strength. We are reinvesting our earnings into
developing new products for our pipeline of at-home wellness tests and
building scalable, digital healthcare-centric technology. We remain committed
to delivering innovative solutions that meet the evolving needs of our
customers and the broader healthcare industry.

Developing talent within our team

Our new and dynamic management team has been the driving force in our past and
future success. The team's determined "can-do" mindset, coupled with a
customer-first approach and an agile streamlined delivery methodology is our
greatest asset.

In 2022, we restructured our product development process and grew our team to
ensure efficient delivery of milestone sprints. We also implemented a constant
feedback loop, where our customers and triallists provided input into each
iteration of our products before launch.

As we move forward, we are further strengthening the MHC team with new
resources in product and digital development operations, and commercial. We
have recently appointed a talented individual in the newly created role of
Operations Director and our primary focus in 2023 is to grow our commercial
team to further expand our B2B2C customer base and drive greater success.

Operations

Despite making the decision to close down our own laboratory operations due to
the downturn in COVID PCR testing in H1 of 2022, our lean distribution channel
has continued to underpin our success this past year. Our rapid responses to
changing customer and market needs has seen us bring our distribution centre
in-house near to our Cardiff headquarters, and we continue to strengthen our
highly effective operational set-up.

In 2022, we further strengthened our position as a gold-standard partner by
establishing key relationships with high-quality laboratory and kit-build
partners, as well as digital partners. These proactive and compliant suppliers
have further strengthened our capabilities and added to our credentials.

Compliance

Our regulatory team is fully committed to meet the new requirements of the In
Vitro Diagnostic Regulation ("IVDR") which affects our products in the UK. We
have a robust network of experienced regulatory partners to support us through
the transitional provisions of the IVDR and we have commenced a transition to
a digital Quality Management System to support us during this transition.

We have also submitted an application to the Healthcare Inspectorate Wales
("HIW") which will enable us to offer doctor-verified testing, and to provide
remote phlebotomy services in the future, whilst safeguarding our customers in
line with our commitments to best practice under HIW.

Investment in future technology

The cash generated from COVID testing has not only allowed us to define an
investment plan around future growth opportunities, it has also put us in a
position of strength where we can achieve our current plans for the business
without the need for additional working capital. This is a crucial advantage
that will allow us to move forward with confidence. As we worked to expand our
testing portfolio in 2023, we also committed to investing in our digital
platform, the plan for which is to unlock further growth potential.

Current Trading

While we anticipate a reduction in the demand for COVID tests as the general
public learns how to respond to living with the virus, we expect that testing
will remain an essential part of our business into 2023 and beyond. We have
seen steady sales in 2023, and as the year progresses, we will establish a new
trendline and will be ready to respond to spikes in demand.

Regarding our new multi-platform range of tests, 2023 will see us moving
beyond our initial soft launch to deliver a national rollout. We are confident
that the investments that we make in our portfolio and service will deliver
growing revenues in the future and a digital infrastructure upon which we can
build and grow, and we are energised by the many opportunities ahead.

Summary

MHC has not only established itself as a player in the wellness industry but
has also achieved excellent financial results in the last two years. Our
commitment to innovation, customer satisfaction, and financial stability and
management has set us on a path to delivering our goal of sustained liquidity.
As we enter an investment phase, we are confident in our ability to execute
our plans and scale our operations to meet the demand of our growing customer
base. With a robust balance sheet and a team of highly skilled professionals,
we are well-positioned to deliver a solid business in 2023 and beyond. The
upcoming launch of new tests and further development of our digital platform
presents a strong opportunity to create value for our shareholders and
solidify our position as a leading wellness company.

 

Adam
Reynolds
Penny McCormick

Chairman
Chief Executive Officer

 

 

FINANCIAL REVIEW

Income statement

Revenue for the year increased by 36% to £22.3m (2021: 16.4m) due to the
significant demand from the top high street pharmacy retailers for COVID
Lateral Flow Tests ("LTFs").  Gross margins reduced from 31% to 21%
reflecting the change in product mix from the processing of higher margin
COVID PCR testing ("PCR") to the distribution of LFTs in a highly competitive
market.  In addition, capitalised costs amounting to £328,000 associated
with the development of COVID user interface on the digital platform, were
fully impaired during the current year through cost of sales.

Sales and marketing costs have increased from £699,000 to £798,000 due to
the increased investment in marketing activities associated with the new and
planned product launches.

Total administrative expenses were broadly comparable to the prior year at
£2,343,000 (2021: £2,386,000).  Excluding the impairment of intangible
assets, share based payments and the laboratory closure costs other
administrative expenses increased to £2,087,000 (2021: £1,860,000) largely
due to the significant investment in the development of the digital platform
in readiness for the launch of the new product offerings in 2023.  Research
and development costs expensed to administrative expenses in 2022 amounted to
£546,000 (2021: £175,000).  As part of our focus on tight cost control the
decision was also taken to close the Manchester laboratory at a total cost of
approximately £226,000 as the facility was no longer operating cost
effectively following the drop in demand for PCR "Fit to Fly" tests.  The
impairment charge of £50,000 in administration expenses relates to patents
and other costs associated with the MYLO/myLotus products previously
capitalised.

The Group's operating profit amounted to £1,506,000 (2021: £2,046,000) and,
after the release of the provision for contingent consideration of £1m, the
impairment of the associated goodwill of £987,000 and net interest payable of
£2,000 (2021: £2,000) the Group's profit before and after taxation was
£1,517,000 (2021: £2,004,000) giving a basic earnings per share of 0.20p
(2021: 0.28p) and fully diluted earnings per share of 0.19p (2021: 0.27p).

Adjusted EBITDA is calculated as follows:

                                                                         2022    2021
                                                                         £'000   £'000
 Operating profit                                                        1,506   2,046
 Depreciation and amortisation                                           222     157
 Impairment of intangible assets                                         378     414
 Share based payments                                                    (20)    112
 Laboratory closure costs (excluding the loss on disposal of equipment)  171     -
 Adjusted EBITDA                                                         2,257   2,729

 

Financial position

The Group's net assets at 31 December 2022 amounted to £8,850,000 (2021:
£7,113,000). This comprised total assets of £11,428,000 (2021: £11,668,000)
and total liabilities of £2,578,000 (2021: £4,555,000). The total assets
included property, plant and equipment (including right-of-use assets) of
£150,000 (2021: £163,000) and intangible assets, being development costs in
respect of the digital platform and website, know-how, goodwill and patent
costs, of £1,098,000 (2021: £2,289,000). As noted above an impairment
provision was made against the goodwill arising on the acquisition of Nell
Health Limited which was acquired last year.

 

Cashflow

The Group's cash balance at the year-end was £7,608,000 (2021: £6,387,000).
The net inflow from operating activities amounted to £1,606,000 (2021:
£3,014,000), whilst the cash outflows from investing activities amounted to
£338,000 (2021: £299,000) and £47,000 (2021: £3,206,000 inflow) was spent
on financing activities.

 

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.

 

Key Performance Indicators ("KPIs")

The Board recognises the importance of both financial and non-financial KPIs
in driving appropriate behaviours and enabling the monitoring of Group
performance.

 

The key financial KPIs monitored by the Board are revenue, gross margin and
EBITDA which are discussed under the review of the Income Statement above.
In addition, the Board also reviews cash and working capital balances on a
monthly basis.

 

With regard to non-financial KPIs, the Board monitors its relationship with
key customers and suppliers, the motivation and retention of employees and
progress against the planned development of the digital platform and new
product offerings.

 

Events after the reporting year

On 17 January 2023 the Court approved the reduction of the share capital of
the Company which involved the cancellation of all the Deferred Shares, the
Share Premium Account and the Capital Redemption Reserve.  The purpose of the
Capital Reduction was to create distributable reserves.

 

 

Nicholas Edwards

Chief Financial Officer

 

FINANCIAL STATEMENTS

 

The notes to the Financial Statement are an integral part of these financial
statements and will be available in full in the Group Annual Report and
Financial Statements which will be available on the Company website later
today.

 

www.investors.myhealthcheckedplc.com
(http://www.investors.myhealthcheckedplc.com)

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For The Year Ended 31 December 2022

 

 

                                                                                   2022      2021
                                                                                   £'000     £'000

 Revenue                                                                           22,314    16,376
 Cost of sales                                                                     (17,667)  (11,245)
 Gross profit                                                                      4,647     5,131
 Sales and marketing costs                                                         (798)     (699)

 Other administrative expenses                                                     (2,087)   (1,860)
 Closure of laboratory                                                             (226)     -
 Impairment of intangible assets                                                   (50)      (414)
 Share based payments                                                              20        (112)
 Administration expenses                                                           (2,343)   (2,386)

 Operating profit                                                                  1,506     2,046
 Finance costs                                                                     (5)       (2)
 Finance income                                                                    3         -
 Contingent consideration no longer payable on the acquisition of Nell Health      1,000     -
 Limited
 Impairment of goodwill arising on acquisition of Nell Health Limited              (987)     -
 Additional consideration payable on the                                           -         (40)

 acquisition of The Genome Store Limited
 Profit before income tax                                                          1,517     2,004
 Tax charge                                                                        -         -
 Profit for the year                                                               1,517     2,004
 Other comprehensive income                                                        -         -
 Total comprehensive profit for the year                                           1,517     2,004

 Attributable to owners of the parent:                                             1,517     2,004

 Earnings per ordinary share - basic                                               0.20p     0.28p
 Fully diluted earnings per ordinary share                                         0.19p     0.27p

 

All activities relate to continuing operations.

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As At 31 December 2022

 

                                                                    2022      2021
                                                                    £'000     `£'000
 Non-current assets
 Property, plant and equipment                                      75        163
 Right of use assets                                                75        -
 Intangible assets                                                  1,098     2,289
 Total non-current assets                                           1,248     2,452

 Current assets
 Inventories                                                        1,284     497
 Trade and other receivables                                        1,288     2,332
 Cash and cash equivalents                                          7,608     6,387
 Total current assets                                               10,180    9,216

 Total assets                                                       11,428    11,668

 Current liabilities
 Trade and other payables                                           2,525     3,315
 Lease liabilities                                                  29        -
 Deferred consideration                                             -         1,240
 Total current liabilities                                          2,554     4,555
 Non-current liabilities
 Lease liabilities                                                  24        -
 Total non-current liabilities                                      24        -

 Total liabilities                                                  2,578     4,555
 Net assets                                                         8,850     7,113

 Share capital                                                      780       756
 Deferred shares                                                    6,359     6,359
 Share premium account                                              16,887    16,671
 Capital redemption reserve                                         1,815     1,815
 Reverse acquisition reserve                                        (6,044)   (6,044)
 Retained earnings                                                  (10,947)  (12,444)
 Total equity                                                       8,850     7,113

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                  Share capital   Deferred shares    Share Premium   Share-based payment reserve   Capital redemption reserve   Reverse acquisition   Retained earnings   Total

                                                                                                                                                                reserve
                                                  £ '000         £'000              £'000            £'000                         £'000                         £'000               £'000                £'000
 Equity as at                                     518                               12,442           916                          1,815                         (6,044)              (15,476)             530

 1 January 2021                                                  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
 Profit for the year                              -                                 -                -                            -                             -                    1,517                1,517

                                                                 -
 Total                                            -              -                  -                -                            -                             -                    1,517                1,517

 comprehensive profit
 Share-based payments                             -                                 -                -                            -                             -                    (20)                 (20)

                                                                 -
 The Genome Store Limited deferred consideration  24                                216              -                            -                             -                    -                    240

                                                                 -
 Equity as at                                     780                               16,887           -                            1,815                         (6,044)              (10,947)             8,850

 31 December 2022                                                6,359

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For The Year Ended 31 December 2022

                                                              2022     2021
                                                              £'000    £'000
 Cash flows from operating activities
 Profit before taxation                                       1,517    2,004
 Adjustments for:
 Deferred consideration                                       (1,000)  40
 Decrease in provisions                                       -        (26)
 Depreciation and amortization                                222      157
 Impairment of intangible assets                              1,365    414
 Loss on sale of laboratory assets                            55       -
 Finance expenses                                             5        2
 Finance income                                               (3)      -
 Share-based payments                                         (20)     112
 Adjusted operating profit before changes in working capital  2,141    2,703
 Changes in working capital
 Increase in inventory                                        (787)    (494)
 Decrease/(Increase) in trade and other receivables           1,044    (2,124)
 (Decrease)/Increase in trade and other payables              (790)    2,931
 Cash generated in operations                                 1,608    3,016
 Net interest payable                                         (2)      (2)
 Net cash inflow from operating activities                    1,606    3,014
 Investing activities
 Acquisition of Nell Health Limited                           -        (50)
 Purchase of property, plant and equipment                    (22)     (147)
 Purchase of intangible assets                                (316)    (102)
 Net cash flows used in investing activities                  (338)    (299)
 Financing activities
 Issue of ordinary shares (net of issue expenses)             -        3,211
 Repayment of lease liability                                 (47)     (5)
 Net cash flows from financing activities                     (47)     3,206
 Net change in cash and cash equivalents                      1,221    5,921
 Cash and cash equivalents at the beginning of the year       6,387    466
 Cash and cash equivalents at the end of the year             7,608    6,387

 

 

 

 

 

 

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 per share

                                                                                                                              2022         2021
 Basic and diluted
 Profit for the year and earnings used in basic & diluted EPS                                                                 £1,517,000   £2,004,000
 Weighted average number of shares - basic                                                                                    774,303,000  710,852,000
 Weighted average number of shares - fully diluted                                                                            778,223,000  744,056,000
 Earnings per share                                                                                                           0.20p        0.28p

 Fully diluted earnings per share                                                                                             0.19p        0.27p

 

Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year.

 

 

Events after the reporting date

On 17 January 2023 the Court approved the reduction of the share capital of
the Company, involving the cancellation of all the Deferred Shares, the Share
Premium Account and the Capital Redemption Reserve.  The purpose of the
Capital Reduction was to create distributable reserves.

 

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