REG - OptiBiotix Health - Half-year Report
28/09/2022 07:00
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RNS Number : 9102A OptiBiotix Health PLC 28 September 2022
28 September 2022
OptiBiotix Health plc
("OptiBiotix" or the "Company" or the "Group")
Half Year Report
OptiBiotix Health plc (AIM: OPTI), a life sciences business developing
compounds to tackle obesity, cardiovascular disease, diabetes and skincare,
announces its results for the six months ended 30 June 2022.
Highlights
· Successful admission of ProBiotix Health plc on the AQSE Growth
Market on 31 March 2022, providing OptiBiotix shareholders with a dividend in
specie of over £10.2m
· Substantial strengthening of the senior commercial management team to
drive future business growth
· Lower than expected first half revenues caused by delays in
restocking by certain large partners and in securing regulatory approval for
some planned product launches
· Improved sales performance post period with product launches by
Apollo Pharmacies in India and restocking by some partners with sales
normalising but insufficient to make up the H1 deficit
· A substantial increase in the value of the Group's holding resulting
in a Group net profit for the period of £13.9m (2021: £14.2m)
· A healthy balance sheet with gross assets of £22.4m
· Entry into sports nutrition market with The Hut Group with the launch
of LeanBiome®
· Launch of reformulated WellBiome® functional fibre and mineral blend
to support healthy ageing
· Publication of a peer-reviewed scientific study of one of our
second-generation SweetBiotix® products, confirming its suitability as a
healthy replacement for sugar
· Conclusion of a joint development agreement with Firmenich, the
world's largest privately owned taste and fragrance company, to develop new
products containing SweetBiotix®
· Significant scientific and commercial progress in the development of
second-generation microbiome modulators
· Good progress in the development of OptiBiotix Health India
Post Period
· The launch of the GoFigure® product range in India with Apollo
Pharmacies
· An agreement with Nutraconnect to help accelerate the
commercialisation of products in the Asia Pacific ("APAC") Region.
· An exclusive distribution agreement with Longlive to distribute
xylooligosaccharide ("XOS") prebiotic into the human nutrition markets (foods
& beverages and supplements) in Europe and Africa as OptiXOS
Stephen O'Hara, CEO of OptiBiotix, commented: "Since the beginning of 2022 we
have invested in the strengthening of our senior management team and focused
on expanding our portfolio of larger business partners and increasing sales of
our finished products direct to consumers, so building a more robust business
for the future. We expect to see a return on this investment in the second
half and beyond.
"As part of this process we are expanding our first-generation family of
functional ingredients into new channels with the launch of LeanBiome® and
WellBiome® and are making good progress commercialising our second-generation
SweetBiotix® products. We are also making significant scientific and
commercial progress in the development of our prebiotic microbiome modulators,
which give us access to one of the most exciting areas of opportunity in the
microbiome space.
"In line with our strategy of delivering multiple opportunities to investors,
we retain significant exposure to the considerable growth potential in
probiotics and skincare through the Group's shareholdings in ProBiotix Health
plc and SkinBiotherapeutics plc.
"We are confident that our strategy will deliver an improved sales performance
in the second half of the year, and even more strongly in 2023, and look
forward to demonstrating the long-term growth potential of the Group."
This announcement contains information which, prior to its disclosure, was
considered inside information for the purposes of the UK Market Abuse
Regulation and the Directors of the Company are responsible for the release of
this announcement.
For further information, please contact:
OptiBiotix Health plc www.optibiotix.com (http://www.optibiotix.com/)
Neil Davidson, Chairman Contact via Walbrook below
Stephen O'Hara, Chief Executive
Cairn Financial Advisers LLP (NOMAD) Tel: 020 7213 0880
Liam Murray / Jo Turner / Ludovico Lazzaretti
Cenkos Securities plc (Broker) Tel: 020 7397 8900
Callum Davidson
Michael Johnson / Russell Kerr (Sales)
Walbrook PR Ltd Mob: 07876 741 001
Anna Dunphy
Chairman's and Chief Executive's Statement
We are reporting on a period of very substantial change for the Group,
reflecting the admission of our formerly wholly owned probiotic subsidiary
ProBiotix Health plc ("ProBiotix Health") to trading on the AQSE Growth Market
on 31 March 2022. This rewarded Group shareholders with a dividend in specie
of approximately £10.24m, while raising £2.5m to accelerate the development
of ProBiotix Health. The Group retains a 44% shareholding in ProBiotix Health,
with a market value of circa £25m as at 30 June 2022, while OptiBiotix
shareholders continuing to own approximately 44% of the ProBiotix business
(£11m). The Company's combined holdings in SkinBiotherapeutics and ProBiotix
Health were valued at £18m as of June 30(th) 2022.
These results are for the Group's new structure following the listing of
ProBiotix Health plc ("PBX") on the AQSE Growth Market in March 2022. The
listing of PBX on AQSE means that PBX is now considered an associate for
accounting purposes with its revenues and costs removed post listing and only
OptiBiotix's (44%) proportion of its profit and loss included in the Company's
accounts. This makes year on year comparisons challenging.
As noted in the annual report, the Group's strategic move to focus on fewer
and larger business partners has resulted in a change in the pattern of
customer demand, as a result of which we always expected to receive fewer but
much larger orders for our products than in the past, with timing differences
in the placement of orders temporarily affecting future financial results.
This change has been reflected in a substantial reduction in the turnover of
our continuing prebiotic business, OptiBiotix Ltd, compared with the first
half last year, as uncertain global market conditions led some major partners
to delay restocking, while planned product launches with our new major
partners Apollo Hospitals and Nahdi Medical were delayed until the second half
owing to slower than expected progress in them securing regulatory
approvals. Post period Apollo have launched in pharmacy stores in major
cities across India.
We are working hard to broaden our customer base by building new partnerships
with larger companies, particularly in the USA, which is expected to
progressively mitigate the revenue risks associated with timing differences
and launch delays in future financial periods. The growth in direct to
consumer online sales will also help to smooth fluctuations in the timings of
when customers reorder stock.
Strategic overview
OptiBiotix Health is a life sciences business founded on the development of
probiotic and prebiotic compounds to tackle obesity, cardiovascular disease,
diabetes and skincare: all markets offering strong growth potential in every
part of the world. The Company has built a broad portfolio of microbiome
assets in this field including skincare through SkinBiotherapeutics and
probiotics, through ProBiotix Health plc. These create a diverse portfolio of
opportunities in an emerging area of healthcare.
The first phase of our two-stage growth strategy, designed to lower the
Group's risk profile, was to establish the credibility of our science and
brands through an initial focus on building sales of our first-generation
products (principally LP(LDL)® in probiotics and SlimBiome® in prebiotics)
though business-to-business deals with partners in multiple territories around
the world, with an initial focus on Europe, while at the same time pursuing
the development of our more innovative second-generation products that offer
potentially larger future returns. This has allowed us to report profitable
trading positions in in each of our prebiotic and probiotic businesses for the
last two years.
In spring 2021 we appointed René Kamminga as CEO of the prebiotics business
and subsequently to the plc Company board in July 2022. We added to our
senior team in spring 2022 to deliver an increasing emphasis on the key
objectives in the second phase of our strategic development. These include:
-
· Focusing on a smaller number of large partners in key strategic
markets, particularly the USA and Asia;
· Improving our sales mix and margins by moving increasingly from
ingredient sales to the sale of finished products, both through larger
partners and direct-to-consumer through our own online store and other outlets
such as TMall.com in Asia;
· Expanding our first-generation product portfolio of functional
ingredients by extending our technology into new channels such as sports
nutrition with LeanBiome® and new product areas such as WellBiome®;
· Progressing the commercialisation of our second-generation products,
SweetBiotix® and Microbiome Modulators;
· Working progressively to broaden our range of larger business
partners, to secure increased volume sales, extend geographical reach, and
reduce revenue dependency of a limited range of partners.
As we have previously stated, this strategy gives our shareholders exposure to
multiple opportunities within the emerging human microbiome space and affords
the potential to deliver additional value through separate public listing of
our divisions, as we have accomplished since the beginning of the new
financial year with the admission of ProBiotix Health to trading on the AQSE
Growth Market.
All these actions increase the scale of the opportunity within OptiBiotix and
our ability to deliver sustained growth for shareholders in the years ahead.
Commercial and scientific overview
Since the beginning of the current financial year we have announced:
· The achievement of British Retail Consortium accreditation,
confirming our compliance with the Global Food Safety Initiative ('GFSI')
benchmark. This certification by one of the leading international food safety
standards, accepted by most large retailers and their suppliers worldwide, is
an important support to our commercial strategy of increasing our sales of
final product solutions to partners in the retail channel.
· Our entry into the sports nutrition market with the launch of
LeanBiome®, a scientifically supported blend of dietary and prebiotic fibres
and a trace mineral, developed to support athletes increase lean muscle mass
and to improve metabolism, gut health and satiety. Our distribution agreement
with leading e-commerce retailer The Hut Group, signed in December 2021, saw
LeanBiome® launched in January 2022 with its Impact Diet Lean product as part
of its My Protein range in the UK and at the end of H1 with a breakfast
smoothie.
· Publication of a third human volunteer study on the clinical efficacy
of LP(LDL)®, demonstrating through a placebo-controlled trial that LP(LDL)®
delivered large and statistically significant reductions in total cholesterol,
LDL-C (bad) cholesterol and Apolipoprotein B (widely accepted as the most
important causal agent of atherosclerotic cardiovascular disease), with no
compliance, tolerance or safety issues. The results of this and other studies
suggest efficacy similar to low level statins and other treatments more
typically associated with pharmaceuticals, suggesting potential in high value
pharmaceutical markets for the use of LP(LDL)® in individuals who are
unwilling or unable to tolerate other treatments.
· Publication of a consumer study undertaken among purchasers from our
own e-commerce website of CholBiome(x3), our proprietary food supplement
containing LP(LDL)®, which confirmed its effectiveness in reducing
cholesterol with no reports of side-effects or any tolerance issues.
· Admission of ProBiotix Health plc to the AQSE Growth Market on 31
March 2022, raising £2.5m for the further development of our former Probiotic
subsidiary through a placing and subscription of new shares, while giving our
own shareholders a dividend in specie of 0.554673 ProBiotix share for every
OptiBiotix Health share held.
· The subsequent appointment of Steen Andersen as Chief Executive
Officer of ProBiotix Health plc, as part of our long-planned strategy to
appoint experienced commercial leaders to run each part of the business. This
allows the Group CEO to focus on identifying and developing the new
technologies that will provide the Group with a continuing pipeline of
products to deliver future growth and market value.
· Good progress in the development of OptiBiotix Health India, the new
subsidiary whose formation we announced in November 2021. This gives us much
improved access to a very large, rapidly growing and increasingly prosperous
market of 1.3bn people. India is expected to account for the majority of the
world's middle-class consumers by 2035. With high levels of cardiovascular
disease and obesity already prevalent in the country, we see excellent
opportunities to improve engagement with our local manufacturing partners and
to develop sales of both ingredients and higher-margin final products in the
years ahead.
· The soft launch at the IFT Expo in Chicago of our reformulated
WellBiome® functional fibre and mineral blend, which contains new ingredients
that allow us to make US and European on-pack health claims for its benefits
to heart, bone, cognitive and metabolic health in support of healthy ageing.
· Certification of LeanBiome® as an Informed Ingredient for Sports
Nutrition: an important industry certification demonstrating through rigorous
independent testing by an authorised body that it is free from substances that
are banned in sport. This is a significant step in attracting major sports
nutrition companies to incorporate LeanBiome® in their products.
· Development of new low calorie, high prebiotic extruded fibre puffs,
designed to make users feel full for longer and to reduce food cravings as an
extension of our SlimBiome® and LeanBiome® ranges. Following successful
taste testing of four flavours of these puffs, they will be launched online
direct to consumers and with partners later in the year.
· Publication of a peer-reviewed study of one of our SweetBiotix®
products confirming its sweetness, bulking and prebiotic fibre properties and
concluding it could be an innovative, healthy substitute for sugar in a range
of everyday products. This is one of a family of second-generation
SweetBiotix® products developed for different applications in food, beverages
and dairy products, based on the concept of creating a sweet fibre that has a
low glycaemic index which enhances the microbiome, and represents a step-
change from existing products on the market or, to the best of our knowledge
and partner discussions, known to be under development. Independent scientific
confirmation of SweetBiotix® by leading scientists in the field is key to
creating interest and industry credibility and provides important marketing
materials for commercial launches.
· Conclusion of a new joint development agreement with Firmenich, the
world's largest privately owned taste and fragrance company, and the world's
largest supplier of Stevia, to develop new products containing our second
generation SweetBiotix® compound, in return for sales-based milestone and
royalty payments. We see this area progressing at pace and believe that the
recent scientific publication and the deal with Firmenich, which is merging
with DSM, the world's largest ingredients supplier, to create a NewCo with a
US $11.4bn turnover, are major steps forward in bringing SweetBiotix® to
market.
· Continued work with large corporate partners to develop further
SweetBiotix® applications for foods and beverages. Our aim is to build a
broad range of products suitable for a wide range of application areas which
can meet the needs of multiple partners, on applications as diverse as dairy,
cereals, and hot and cold beverages, that will broaden the scale of the
opportunity for our investors.
· Significant scientific and commercial progress in the development of
our microbiome modulators: a range of second-generation products which
selectively enhance the growth rate of specific types of bacteria and create
the potential for targeted treatment of a range of human diseases. We have
developed an innovative approach to allow us to precision engineer the
microbiome to selectively increase the growth and biological activity of a
range of bacteria using precision prebiotics, creating the potential to
revolutionise the use of the microbiome therapies in healthcare. This is one
of the most exciting areas of opportunity in the microbiome space. During the
period we made a presentation at an international conference of a new approach
which allows us to manufacture at scale through the identification, sequencing
and production of an enzyme which generates the prebiotic in large amounts.
This is a major step forward in the commercialisation process which has
enhanced the commercial appeal of these products to corporate partners and has
already led to early discussions with a large US corporate partner on
commercialising a range of these products as high value special ingredients.
Results
OptiBiotix results for six months ended 30 June 2022 are set out below. These
results are for the Group's new structure following the listing of ProBiotix
Health plc ("PBX") on the AQSE Growth Market in March 2022. The listing of
PBX on AQSE means that PBX is now considered an associate for accounting
purposes with its revenues and costs removed post listing and only
OptiBiotix's (44%) proportion of its profit and loss included in the Company's
accounts. This makes year on year comparisons challenging.
The results show revenue from continuing operations for the six months of
£118,898 (2021: Combined sales of £1,076,044), reflecting the separate
admission of ProBiotix Health and delays in the placement of orders by our new
larger partners, as the uncertain economic environment caused some hesitancy
in restocking, and slowness in securing regulatory approvals led to some
planned new product launches being deferred until the second half of 2022.
Post period Apollo Hospitals launched a range of GoFigure products in
September 2022.
As in previous years, there was no contribution in this period from licence or
royalty payments which tend to be received in the second half of the year.
Administrative expenses were £1,109,311 (2021: £1,071,015) which includes
ProBiotix costs to the end of March 2022 and a number of one off prelisting
and recruitment expenses. Staffing costs increased reflecting the additions to
the team in H1 but should moderate under a shared service agreement which
allocates costs between ProBiotix and OptiBiotix companies equally or
according to usage if materially different.
The listing of ProBiotix on AQSE has created a previously unrecognised asset
allowing the Company to report a circa £13.9m profit largely from the gain on
this investment offset by a loss on revaluation of the SkinBioTherapeutics plc
shares. The Company has a healthy balance sheet with gross assets of £22.4m
(H1 2021: £28m) with circa £1.5m (H1 2021: £993K) cash at the end of June
2022. Once R&D tax credits are claimed and recoverable VAT repayments are
added, the balance will be £1.98m (2021: £1.21m).
Board and management
René Kamminga was appointed a Director of the Group on 1 July 2022 following
his appointment as Chief Executive Officer of our prebiotic business,
OptiBiotix Ltd, in March 2021. René is now focusing on the key objectives of
expanding our product range, increasing the number of larger partners, growing
sales and building a profitable business.
As noted in the annual report, we made a number of senior appointments in the
early part of the financial year, almost doubling the size of the team to
support business growth. These will contribute to the development of both
OptiBiotix and ProBiotix, under a shared service agreement which allocates
costs between the companies according to usage.
Paul Cannings joined us in January 2022 as Head of Operations & Quality.
His focus is on managing every step of the supply chain, from negotiating and
ordering raw ingredients through warehouse and inventory management to order
fulfilment and invoicing. As part of this process, we are changing our current
warehousing supplier to reduce fulfilment costs and increase our international
coverage.
Zac Sniderman joined us in March 2022 as Business Development & Sales
Director for North America, as part of a strategic focus for 2022 to increase
the number of large partners in the important US market. Zac's role is to
identify and reach agreement with large US partners for the commercialisation
of our products in North America.
Shiraz Butt also joined us in March 2022 as E-Commerce Director. His role is
to grow the online sales business by selling OptiBiotix own label products
direct to customers both in the UK and in Asia. This involves improving the
online sales experience, working with influencers and social media channels to
increase product awareness, and most importantly growing online sales into a
profitable business. Shiraz comes with a strong record of online sales
growth achieving the all-time highest online sales consistently for large
sports nutrition brands PhD Nutrition, TheProteinWorks and Iovate. He has
grown ecommerce divisions for brands internationally from launch to
£10million+ covering D2C and marketplaces.
These appointments are all part of a strategy to bring in industry leaders and
specialist expertise to support the Group's growth plans and capitalise on the
opportunities created by our growing pipeline of products. We would expect the
value from these appointments to be realised in the second half of 2022 and
beyond.
We will continue to evolve the Board in line with the Company's focus on the
prebiotic business and its strategic aims.
Outlook
Despite the challenging trading environment, the Group is in a strong position
with a healthy balance sheet and cash position, and improving sales prospects
in the second half of 2022. We continue to develop online sales direct to
consumers through our own website and build new revenue streams through new
partners launching products in the second half of 2022 such as Apollo
Hospitals in India and Nahdi Medical in Saudi Arabia. The commercial
agreements we signed at the end of 2021 with these new large partners, and
with The Hut Group in the UK, represent the future strategic direction of the
Company and are complemented by the joint development agreement signed with
Firmenich in the current year, which will help us to bring our
second-generation SweetBiotix® products to larger markets.
At the start of 2022 we invested in expanded sales and marketing capabilities
that will help us increase the number of larger partners, increase our sales
of final products direct to consumers through retail channels, and create a
more robust business for the future. Broadening our partner and product base
will reduce the risk of revenues in future accounting periods being impacted
by individual partners delaying launches, or by timing differences in
restocking.
The Company is exploring opportunities to in-license or acquire additional
technologies that will ensure a continuous pipeline of solutions to deliver
diversified growth for the Group and strengthen our position as one of the
leading companies in the rapidly growing microbiome space.
We are confident that our strategy will deliver an improved sales performance
in the second half of the year, and even more strongly in 2023. Our
second-generation SweetBiotix® family of products and microbiome modulators
offer exciting potential for future growth in prebiotics, while we retain
exposure to the considerable growth potential in probiotics and skincare
through the Group's shareholdings in ProBiotix Health plc and
SkinBiotherapeutics plc.
The continued expansion of our markets, the proven credibility of our science,
the growing recognition of our brands and the strength and depth of our
management team all give us a high degree of continued confidence in the
exciting long-term growth potential of the Group.
N Davidson and S O'Hara
28 September 2022
Consolidated Statement of Comprehensive Income
For the six months to 30 June 2022
6 months to 6 months to Year to
30 June 30 June 31 December 2021
2022 2021 Audited
Unaudited Unaudited
Continuing operations £ £ £
Revenue 118,898 1,076,044 2,212,932
Cost of sales (56,692) (601,813) (1,089,589)
─────── ─────── ───────
Gross Profit 62,206 474,231 1,123,343
Share based payments 5,810 30,144 60,288
Depreciation and amortisation 117,425 144,636 288,455
Other administrative costs 986,076 896,235 2,139,914
Administrative expenses (1,109,311) (1,071,015) (2,488,657)
─────── ─────── ───────
Operating loss (1,047,105) (596,784) (1,365,314)
Finance income / (costs) 81 (23,186) (47,478)
Share of loss from associate 91,386 - -
Gain on investments 14,859,096 14,165,501 7,500,681
Profit on disposal of investments - 720,863 88,618
─────── ─────── ───────
Profit/(Loss) before Income tax 13,903,458 14,266,394 6,176,507
Income tax 12,288 2,638 84,523
─────── ─────── ───────
Profit/(Loss) for the period 13,915,746 14,269,032 6,261,030
Other Comprehensive Income - - -
─────── ─────── ───────
Total comprehensive income for the period 6,261,030
13,915,746 14,269,032
═══════ ═══════ ═══════
Total comprehensive income attributable to the owners of the group 6,261,030
13,915,746 14,269,032
Dividends (10,258,000) - -
Non-controlling interest - - -
═══════ ═══════ ═══════
3,657,746 14,269,032 6,261,030
Earnings/(loss) per share
Basic & Diluted - pence 4 4.15p 16.23p 7.15p
═══════ ═══════ ═══════
Basic & Diluted before 3.84p 14.88p 6.55p
Profit on investment revaluation - pence ═══════ ═══════ ═══════
Consolidated Statement of Financial Position
As at 30 June 2022
Notes As at As at As at
30 June 2022 30 June 2021 31 December
Unaudited Unaudited 2021
Audited
ASSETS £ £ £
Non-current assets
Intangibles 2,232,984 2,726,349 2,640,672
Property, plant & equipment 2,000 - -
Investments 5 18,093,846 22,947,992 13,650,927
─────── ─────── ───────
20,328,830 25,674,341 16,291,599
─────── ─────── ───────
CURRENT ASSETS
Inventories 127,679 86,323 101,877
Trade and other receivables 434,040 1,285,689 1,552,490
Current tax asset 68,343 115,772 191,249
Cash and cash equivalents 1,509,347 993,014 2,007,448
─────── ─────── ───────
2,139,409 2,480,798 3,853,064
─────── ─────── ───────
TOTAL ASSETS 22,468,239 28,155,139 20,144,663
═══════ ═══════ ═══════
EQUITY
Shareholders' Equity
Called up share capital 6 1,760,312 1,758,812 1,758,812
Share premium 2,545,001 2,537,501 2,537,501
Share based payment reserve 933,405 897,451 927,595
Merger relief reserve 1,500,000 1,500,000 1,500,000
Convertible Loan Note Reserve - 92,712 92,712
Retained Earnings 14,977,744 19,328,000 11,319,998
─────── ─────── ───────
21,716,462 26,114,476 18,136,618
Non-Controlling Interest 35,782 35,782 35,782
─────── ─────── ───────
Total Equity 21,752,244 26,150,258 18,172,400
─────── ─────── ───────
LIABILITIES
Current liabilities
Trade and other payables 255,014 643,489 600,904
─────── ─────── ───────
255,014 643,489 600,904
─────── ─────── ───────
Non - current liabilities
Deferred tax liability 460,981 558,885 552,000
Borrowings - 802,507 819,359
─────── ─────── ───────
460,981 1,361,392 1,371,359
─────── ─────── ───────
TOTAL LIABILITIES 715,995 2,004,881 1,972,263
─────── ─────── ───────
TOTAL EQUITY AND LIABILITIES 22,468,239 28,155,139 20,144,663
═══════ ═══════ ═══════
Consolidated Statement of Changes in Equity
For six months to 30 June 2022
Called up Share Share-based Non controlling Interest Merger Retained Earnings Convertible Total
Share premium Payment Relief Loan note Equity
Capital reserve Reserve
£ £ £ £ £ £ £ £
────── ─────── ─────── ────── ────── ────── ──── ───────
Balance at 31 December 2020 1,758,812 2,537,501 867,307 35,782 1,500,000 5,058,968 92,712 11,851,082
Profit for the period - - - - - 14,269,032 - 14,269,032
Share based payment - - 30,144 - - - - 30,144
────── ─────── ─────── ────── ────── ────── ────── ───────
Balance at 30 June 2021 1,758,812 2,537,501 897,451 35,782 1,500,000 19,328,000 92,712 26,150,258
────── ─────── ─────── ────── ────── ────── ────── ───────
Loss for the period - - - - - (8,008,002) - (8,008,002)
share based payment - - 30,144 - - - - 30,144
────── ────── ────── ────── ────── ────── ────── ──────
Balance at 31 December 2021 1,758,812 2,537,501 927,595 35,782 1,500,000 11,319,998 92,712 18,172,400
────── ────── ────── ────── ────── ────── ────── ──────
Profit for the period - - - - - 3,657,746 - 3,657,746
share based payment - - 5,810 - - - - 5,810
Loan note conversion - - - - - - (92,712) (92,712)
Issue of shares 1,500 7,500 - - - - - 9,000
────── ────── ────── ────── ────── ────── ────── ──────
Balance at 30 June 2022 1,760,312 2,545,001 933,405 35,782 1,500,000 14,977,744 - 21,752,244
────── ────── ────── ────── ────── ────── ────── ──────
Consolidated Statement of Cash Flows
For the six months to 30 June 2022
Notes 6 months to 6 months to Year
30 June 30 June to
2022 2021 31 December 2021
Unaudited Unaudited Audited
£ £
Reconciliation of loss before income tax to cash outflow from operations
Operating loss (1,047,106) (596,784) (1,365,314)
Decrease/ (Increase) in inventories (35,744) 97,913 82,359
(Increase)/decrease in trade and other 658,223 (639,866) (906,666)
receivables
(Decrease)/increase in trade and other (211,233) 124,494 81,909
payables
Share Option expense 5,810 30,144 60,288
Amortisation of patents 117,425 144,636 288,455
Net foreign exchange differences - 6,511 (478)
────── ────── ──────
Net cash outflow from operations (512,625) (832,952) (1,759,447)
Interest received 121 63 121
Tax received 98,331 194,663 194,664
────── ────── ──────
Net cash outflow from operating activities (414,173) (638,226) (1,564,662)
Cash flows from investing activities
Purchase of intangible assets (57,726) (134,376) (193,506)
Net cashflow re disposal of subsidiary (35,202) - -
────── ────── ──────
Net cash (outflow)/inflow from investing activities (92,928) (134,376) (193,506)
────── ────── ──────
Cash flows from financing activities
Share issues 9,000 - -
Disposal of Investments - 900,936 2,900,936
────── ────── ──────
Net cash inflow from financing activities 9,000 900,936 2,900,936
────── ────── ──────
Increase/(decrease) in cash and equivalents (498,101) 128,334 1,142,768
Cash and cash equivalents at beginning of period 2,007,448 864,680 864,680
────── ────── ──────
Cash and cash equivalents at end of period 1,509,347 993,014 2,007,448
══════ ══════ ══════
Notes to the Half Yearly Report
For the six months to 30 June 2022
1. General Information
Optibiotix Health Plc is a company incorporated and domiciled in England and
Wales. The company's offices are in York. The company is listed on the AIM
market of the London Stock Exchange (ticker: OPTI).
The financial information set out in this Half Yearly report does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006. The group's statutory financial statements for the period ended 31
December 2021, prepared under International Financial Reporting Standards
("IFRS"), have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified and did not contain
statements under Sections 498(2) and 498 (3) of the Companies Act 2006.
Copies of the annual statutory accounts and the Half Yearly report can be
found on the Company's website at http://www.optibiotix.com/
(http://www.optibiotix.com/) .
2. Basis of preparation and significant accounting policies
This Half Yearly report has been prepared using the historical cost
convention, on a going concern basis and in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the United Kingdom.
The interim financial statements have been prepared in accordance with the
accounting policies set out in the Annual Report and Accounts for the year
ended 31 December 2021.
3. Segmental Reporting
In the opinion of the directors, the Group has one class of business, in three
geographical areas being that of identifying and developing microbial strains,
compounds and formulations for use in the nutraceutical industry. The Group
sells into three highly interconnected markets, all costs assets and
liabilities are derived from the UK location.
Following the listing of Probiotix Health plc on the AQSE Growth Market on 31
March 2022 the figures below include turnover from 1 January 2022 to 30 March
2022 are included for ProBiotix Ltd.
Revenue analysed by market
Period ended Period ended Year ended
30 June 30 June 31 December 2021
2022 2021
£ £ £
Probiotics 19,508 536,225 1,100,132
Functional Fibres 99,390 539,819 112,800
────── ────── ──────
118,898 1,076,044 2,212,932
══════ ══════ ══════
Revenue analysed by geographical market
Period ended Period ended Year ended
30 June 30 June 31 December 2021
2022 2021
£ £ £
UK 47,796 309,493 647,649
US 15,366 408,366 827,135
International 55,736 358,185 734,148
────── ────── ──────
118,898 1,076,044 2,212,932
══════ ══════ ══════
During the reporting period one customer represented £49,668 (41.8%) of Group
revenues. (June 2021: one customer generated £408,366 representing 37.9% of
Group revenues)
4. Earnings per Share
Basic earnings per share is calculated by dividing the earnings
attributable shareholders by the weighted average number of ordinary shares
outstanding during the period.
Reconciliations are set out below:
6 Months to 6 Months to Year to
30 June 2022 30 June 2021 31 December
Unaudited Unaudited 2021
Audited
Basic
Earnings attributable to ordinary shareholders 3,657,746 14,269,032 6,261,029
Weighted average number of shares 88,047,596 87,940,601 87,574,152
Earnings (Loss) per-share - pence 4.15p 16.23p 7.15p
═════ ═════ ═════
Diluted
Earnings attributable to ordinary shareholders 3,657,746 14,269,032 6,261,029
Weighted average number of shares 95,230,503 95,902,844 87,574,152
Earnings/(Loss) per-share - pence 3.84p 14.88p 6.55p
═════ ═════ ═════
As at 30 June 2022 there were 7,182,907 outstanding share options.
5. Investments
Available for sale investments
Carrying value £
At 31 December 2020 8,962,564
Revaluations 7,500,681
Disposal of shares during the period (2,812,318)
──────
Carrying amount
At 31 December 2021 13,650,927
Revaluations (6,980,467)
──────
Carrying amount
At 30 June 2022 6,760,460
══════
Investment in associates
Carrying value £
At 31 December 2021 -
Additions 11,242.000
Share of profit 91,386
──────
Carrying amount
At 30 June 2022 11,333,386
══════
Total value of investments at 30 June 18,093,846
2022
══════
6. Share Capital
Issued share capital comprises:
6 months 6 months Year to 31
to 30 June to 30 June December
2022 2021 2021
Unaudited Unaudited Audited
£ £ £
Ordinary shares of 2p each - 1,758,812 1,758,812
87,940,601
Ordinary shares of 2p each 1,761,314 - -
88,065,601
─────── ─────── ───────
1,761,314 1,758,812 1,758,812
═══════ ═══════ ═══════
7. Post balance sheet events
No post balance sheet events.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward looking statements are
not based on historical facts but rather on the Directors' current
expectations and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive advantages,
business prospects and opportunities. Such forward looking statements reflect
the Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
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