REG - OptiBiotix Health - Half-year Report
27/09/2023 07:00
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RNS Number : 7262N OptiBiotix Health PLC 27 September 2023
27 September 2023
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 unaudited results for the six months ended 30 June 2023.
Highlights
· Strong first half of trading with sales of £351k (2022: £119k), a
195% increase over H1 2022. Given H1 2022 included £19.5k from Probiotic
sales up to March 30 2022, the 'like for like' increase is 251%. 85% of this
sales income was received in Q2 2023
· A 154% increase in gross profit from £62k in H1 2022 to £158k in H1
2023
· A 17.3% reduction in administrative expenses from £1,108k to £918k
· Sales from existing partners slowly returning to forecast with new
orders from both The Hut Group (THG) and Holland & Barrett
· Improved sales performance in H1 2023 by Apollo Pharmacies (up 500%)
in India and Nahdi Medical (up 30%) in Saudi Arabia following more active
account management. These increased sales are not reflected in H1 but impact
on restocking requirements in H2 2023
· Three new partners in Asia who have all placed initial orders for
SlimBiome®
· Strong sales growth of own brand products on e-commerce channel
· A large first order from a new partner of £116k for SlimBiome® from
a contract manufacturer of a leading weight management and sports nutrition
brand in the USA
· The listing of SlimBiome® Medical and Gofigure® products on Amazon
UK in February 2023, and Slimbiome® Medical on Amazon Germany and Walmart USA
in May 2023. We anticipate further international listings on Amazon
throughout 2023 including Amazon India, the Gulf States, and Amazon USA.
This is all part of a strategy to increase the internationalisation of our own
brand products online in 2023
· Published the results of a third human study on SlimBiome®
demonstrating statistically significant benefits to appetite and hunger
regulation with a single dose of SlimBiome®
· The launch of our gut and digestive health WellBiome® product as
part of a strategy to enhance our range of product offerings and to mitigate
the seasonal variations in the sale of weight management products. The product
has received excellent reviews on Amazon with growing month on month sales
(125% increase July to August) and a high number of repeat orders (63% in
August). We will increase our marketing on WellBiome® and extend its
availability to other Amazon international channels in Q4 2023
· Significant progress in the manufacturing scale up 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
· Good progress from both partners in the commercial scale up and
testing of our second-generation SweetBiotix® family of products offering
exciting potential for future growth
· No debt with valuable assets in SkinBioTherapeutics plc and ProBiotix
Health plc providing a strong balance sheet
Post Period
· As announced on 29 August 2023, one of our partners has secured an
international listing for products containing SlimBiome® with Costco, the
fifth largest retailer in the world
· Q3 saw our first new customer in Canada, Prairie Naturals, who will
launch a SlimBiome® based powder in Q4 2023
· We have reached agreement with Boots pharmacies to launch SlimBiome®
products online in Q1 2024 (announced on 21 September 2023)
· A further 9.7 metric tonnes of SlimBiome® has been taken from stock
held by distributors for our two largest partners up to August 2023. Once
this stock overhang is cleared this should have a material impact on
reportable revenue
Stephen O'Hara, CEO of OptiBiotix, commented: "The focus for 2023 has been on
moving the business to profitability by a reduction in costs, a focus on
existing partners returning to forecast, bringing in new partners particularly
in the USA and Asia, and expanding e-commerce channels to reduce partner
dependency. Good progress has been made in each of these areas. This is all
part of plans for each business unit (USA, India, Ecommerce, B2B) to reach
profitability, at least on a monthly basis by the end of the calendar year.
"The aim for the second half of the year is to maintain our focus on managing
costs, growing sales and closing out ongoing discussions with a number of
larger partners across first and second-generation products to ensure a return
on investment from the expansion of our commercial and business development
teams. We are particularly excited about our second-generation products
approaching commercialisation given their uniqueness in the marketplace. Our
sweet prebiotic fibres, called SweetBiotix® create the opportunity to replace
unhealthy calorific and cariogenic sugars with healthy fibres in a wide range
of food and beverage products. With growing health concerns over traditional
sugars and sweeteners, the commercialisation of SweetBiotix® meets a large
global market need. After many years of hard work we are equally pleased at
the significant progress we have made in 2023 in the manufacturing scale up
our microbiome modulators 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 believe these unique products, individually
and collectively, offer shareholders the potential for a significant
enhancement in the value of the Company.
"The Group has no debt, a strong balance sheet, and retains significant
exposure to the considerable growth potential of the microbiome through its
shareholdings in ProBiotix Health plc and SkinBioTherapeutics plc."
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.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.
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
Peterhouse Capital Limited (Broker) Tel: 020 7220 9797
Duncan Vasey / Lucy Williams
Walbrook PR Ltd Mob: 07876 741 001
Anna Dunphy
Chairman's and Chief Executive's Statement
After a challenging 2022 our focus in 2023 has been on moving the Company
towards profitability. We believe we will achieve this by a reduction in
central costs and by the promotion of sales, both direct to consumers via
e-commerce channels and through our existing partners delivering on forecasts
and bringing in new customers, particularly in the USA and Asian markets.
There has been progress in each of these areas in the first six months of
2023, and in particular since March 2023 when we initiated a number of changes
to the management team.
This focus has resulted in a substantial increase in turnover (195%) and gross
profit (154%) and a reduction in administration expenses (17.3%). This has led
to a fall in our operating loss (28%) for the first six months of the year.
Whilst encouraging, it's only a first step, and our focus remains on reaching
profitability by broadening our customer base in more territories, building
new partnerships with larger companies particularly in the USA and Asia, and
controlling costs. This will create a more robust business for the future
and will reduce the risk of revenues in future accounting periods being
impacted by individual partners delaying launches, or by timing differences in
restocking.
Strategic overview
Whilst our immediate focus is on reaching profitability this takes place
within a strategic framework of:-
· Focusing on a 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 and Amazon;
· Building first-generation product portfolio in weight management and
extending our technology into new channels such as sports nutrition with
LeanBiome®, and new product areas such gut and digestive health with
WellBiome®;
· Progressing the commercialisation of our second-generation products,
SweetBiotix® and Microbiome Modulators
The first phase of strategy was to establish the credibility of our science
and brands and the sustainability of the business through an initial focus on
building sales of our first-generation products (SlimBiome®, LP(LDL)®)
through business-to-business deals with multiple partners principally in
Europe. The Company made rapid sales progress with combined sales of
prebiotic and probiotic first-generation products of £1.5m (2020) and £2.2m
(2021) and both the Probiotic (now ProBiotix Health plc) and Prebiotic trading
businesses being EBITDA profitable in both years. SlimBiome® now has three
clinical studies, health claims in numerous territories around the world, an
extensive international IP portfolio, multiple awards, and accounts with
well-known national (Holland and Barrett), and international brands
(Myprotein). This has allowed us to extend our SlimBiome® brand into new
territories (Asia, USA), expand into the sports nutrition channel, and launch
a patented gut and digestive health product, WellBiome®.
Our strategic focus is now turning to the approaching commercialisation of the
SweetBiotix® and Microbiome modulator family of products which offers
shareholders the potential for significant value enhancement. 2023 has seen
significant progress by both partners in the commercial scale production of
SweetBiotix®, with final product taste tested and accepted by our US
partner. Liquid and freeze-dried products are undergoing independent
structural analysis and expert panel taste testing to determine sweetness, off
tastes, aftertastes etc when compared to sucrose and other products after
which we can start partner application development and launch plans. In the
meantime, our partners are undergoing early consumer testing as they prepare
for launch.
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:-
· Invested significantly in new e-commerce channels, including Amazon
in the UK, and Walmart in the USA, as well as Tmall.com in China. This has
led to good sales growth which with continued investment we anticipate will
continue throughout 2023 and beyond.
· Shifted our commercial focus to selling SlimBiome® Medical sachets
in Europe and SlimBiome® shots in India and the Gulf states. These are
designed to be consumed before meals and help users manage their weight by
making consumers feel fuller for longer and reducing cravings for sweet and
savoury snacks. This is a highly differentiated product which leverages
growing market interest in injectable appetite control drugs like
semaglutide. SlimBiome® Medical can be used with any weight management
plan or calorie restriction plan and complements rather than competes in a
crowded marketplace. The product enjoys high margins and became a
top-selling line on Amazon UK in 2023 within its market segment.
· Re-engaged with major partners that underperformed against our sales
expectations in 2022, leading to:
· A significant new investment in marketing by Optipharm in Australia,
coupled with the launch online of their Optislim and Optiman ranges containing
our OptiBiome® prebiotic fibre.
· New orders from both The Hut Group and Holland & Barrett in the
UK.
· A substantial increase in the number of Apollo pharmacies in India
and Nahdi pharmacies in Saudi Arabia selling GoFigure® products.
· Successfully launched new products, including our reformulated gut
and digestive health WellBiome® functional fibre and mineral blend, which has
been made available via our own online store and more recently on Amazon UK.
· Recruited three new partners in Asia who have all placed initial
orders for SlimBiome and a major US weight management brand, with which we
will be launching during the second half of 2023, initially in Europe and
later in the USA.
· Published the results of a third human study on SlimBiome® which
demonstrated statistically significant benefits to appetite and hunger
regulation, with no safety, compliance or tolerance issues reported by the
participating volunteers. This study underlines the effectiveness of a single
dose of SlimBiome® in delivering hunger-free weight loss by non-invasive
means. This study was timely given the growing consumer, media and
pharmaceutical company interest in this field following NICE'S approval of the
injectable drug semaglutide.
North America Sales and Business Development
We have a strong sales pipeline in North America and the USA made up of small,
medium size, and a number of large US corporates (including a £9bn Muliti
Level Marketing company -MLM) that offer opportunities for sales growth in
2023 and beyond. The Company has received a number of orders from USA and
Canadian partners who are owners of leading weight management or sports
nutrition brands in the USA. We expect further orders in H2 from our
pipeline of interested partners.
We continue to advance projects and expand our pipeline with North American
companies with the US business looking to contribute $287k of sales in its
first full year of commercial operation. The Company will be exhibiting its
SlimBiome®, LeanBiome®, and Wellbiome® products at Supply Side West, USA,
in November 2023 with a view to progressing further opportunities in this
market.
Consumer Health and Ecommerce sales
The Consumer Health Division is growing rapidly increasing sales by 65% in Q2
compared to Q1 and in the first 6 months of 2023 has already achieved higher
sales than FY 2022. Amazon UK has been instrumental in achieving such
success due to the increase in the customer base. The Company has successfully
moved to Fulfilment By Amazon model (FBA). This model has allowed customers to
receive faster delivery through Prime accounts. Slimbiome® is consistently in
the top best sellers for anti-appetite-suppressants and achieved the highest
sales in online history during Prime month in July 2023.
The key to growth is to expand our reach to customers via various channels
globally (Amazon Germany, United Arab Emirates (UAE) and India) and to widen
our product portfolio and increase brand awareness.
New customers such as Amazon UAE terms have been agreed and Slimbiome®, and
Wellbiome®, and our gummies are being listed. Amazon Kingdom of Saudia Arabia
(KSA) will follow suit as they have observed our strong presence in Nahdi
Pharmacies in the territory. Amazon India has been identified as a huge
potential and the Amazon account has been created. Next steps include getting
the products listed ready for a strong sales push in Q4.
Our China business has seen our highest month of sales on Tmall in August 2023
and we envisage an even higher month in September 2023. This can be attributed
to the work done with local KOL influencers in the region and a strategic move
to sell more on the TikTok platform. Tmall has a large event in November 2023
which OptiBiotix will be participating in and should encourage further sales.
To widen our product portfolio, in Q4 2023 will bring new products including
soups and porridges onto our own platform and subsequently to Amazon. By
adding further to the range, this will allow an increase in average order
value online and compensate for the peaks and troughs in the weight management
cycle.
Competitor analysis of our WellBiome® product has indicated the Consumer
Health Division needs to increase awareness through social channels and is
currently focusing on recruiting influencers. With the increased awareness,
our division will have more visits, brand recognition and most importantly
sales. Competitors such as Symprove have sales of up to £15 million per annum
with a heavy reliance on Influencers/social media. Based on our analysis we
have competitive advantage on price and product including on pack health
claims.
A competitor analysis for Wellbiome® has indicated value in a change in
positioning from healthy ageing to gut and digestive health which will allow
us to attract more customers. We have already begun targeting competitors with
keywords/ads and have listed successfully with Amazon UK on FBA. We will
follow a similar path with Slimbiome® in the months ahead.
The Consumer Health Division has the advantage of receiving online sales
income immediately and allows more control of our brand/IP/messaging and less
reliance on distributors to grow the brand.
OptiBiotix Health India
OptiBiotix Health India ("OHI") was formed in November 2021 as a mid to long
term strategic investment in the world's most populous nation forecast to have
the highest population of medium to high level income customers in the
world. The formation of OHI has helped OptiBiotix avoid high import taxes
and control the purchase and sale of ingredients (SlimBiome®) and final
product (GoFigure®) manufactured and sold in India.
After a slow start following the launch of products with Apollo in September
2022 we are now seeing momentum increase with 529 stores in major cities now
selling GoFigure products with the aim of 1000 stores by year end. This has
helped sales grow by by 500% in the last 5 months. These increased sales will
not be reflected in H1 but will impact on restocking requirements in H2 when
Apollo have agreed to extend the product range. Apollo carried out a
consumer survey which showed:-
· There was a 87% customer return rate of customers buying GoFigure®
products
· There were 23% new customers to Apollo pharmacies who just bought
GoFigure® products
This customer feedback is consistent with feedback from THG who gained 40% new
customers with the introduction of LeanBiome® to their Myprotein® product
range. These launch experiences transform the proposition in commercial
discussions with new partners as it demonstrates our products customer appeal
and its ability to attract new and returning customers.
The business in India has a strong pipeline with emerging and leading players
in weight management and sports nutrition and if launches go to plan, we would
anticipate sales in the region of £130k this financial year.
Results
OptiBiotix results for the six months ended June 30 2023 are set out below.
These results are for the Group's new structure following the listing of
ProBiotix Health (PBX) plc on the AQSE Growth Market on 31 March 2022 with PBX
costs and revenues no longer included from that date. When making comparisons
with 2022, it should be noted that H1 2022 accounts included costs and
revenues for the combined group (ProBiotix and OptiBiotix) up to the end of
March 2022.
The results show revenue from continuing operations for the six months of
£351k (H1 2022: £119k), a 195% increase in sales. 85% of this income was
received in the second quarter (April to June 2023) following changes to the
leadership team. Administration expenses are down 17% (H1 2023: £918k, H1
2022: £1,108k) reflecting cost saving measures and recovery of some of the
debt provision reported in 2022 accounts. This includes a proportional
settlement payment to the departing CEO, Rene Kamminga. There is a £286k
(28%) reduction in operating loss, from £1,046k in 2022 to £760k in 2023
which will reduce further with the full year effect of cost improvement
measures including removing Cenkos as joint broker, the departure of Rene
Kamminga in March 2023, and the reduction of the board from four to two
non-executives in July 2023. 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.
The Company has a healthy balance sheet with gross assets of £9.9m (31
December 2022: £11.5m) with circa £893k cash (31 December 2022: £1.1m) at
the end of June 2023. Once R&D tax credits are claimed and recoverable VAT
repayments are added, the balance would be £1.02m (31 December 2022:
£1.24m).
Post period end, the Group generated gross proceeds of £399k from the sales
of SBTX shares.
The Board senior management and advisers
The Board took decisive action in December 2022 and in H1 2023 to reduce
Board, management and advisory costs in order to ensure each part of the
business and subsequently the Group achieve operational profitability as soon
as possible. These actions included the termination of joint brokerage with
Cenkos Securities plc at the end of March 2023, the stepping down of Rene
Kamminga, CEO of OptiBiotix Ltd, who left the business on 28 February 2023,
and a voluntary 20% reduction in all directors' salaries from 1 January 2023.
With twice as many non-executive directors as executive directors Stephen
Hammond and Chris Brinsmead agreed to step down as Non-executive directors at
the Company's Annual General Meeting in July 2023. The overall aim of the
measures was to reduce cost throughout 2023 and beyond.
We anticipate further restructuring of the board and management team of
OptiBiotix as ProBiotix Health plc develops its independence and we reduce the
number of senior employees currently shared with ProBiotix Health plc under
shared service agreements.
Looking ahead, the focus of the Company will be on investing in areas that
offer the highest return. To support that process and ensure a focus on
profitability the Company is developing profit and loss metrics for each part
of the business with the aim of each area (USA, India, Ecommerce, B2B)
reaching profitability, at least on a monthly basis by the end of the calendar
year.
Outlook
After a challenging 2022 the Company took decisive action to reduce costs and
focus on sales and bringing in new customers, particularly in the USA and
Asian markets. There has been progress in each of these areas which has been
reflected in much improved results. These changes, further sales growth, full
year cost reductions, and income from licence or royalty payments which tend
to be received in the second half of the year should help the Company on its
path to return to the levels of growth and EBITDA profitability achieved in
2020 and 2021. However, this is only the start and the Company must
continue to bring in new partners, build on line sales in more territories,
and launch its second generation products if it is to continue this upward
trajectory.
The Board recognises that whilst sales in H1 were strong it is working in a
very volatile external environment and until it increases its number of
partners it is very reliant on sales performance of a limited number of large
partners where timing differences in restocking large orders can have a
material impact on reporting revenues in that accounting period. To mitigate
this risk the Company has sought to increase the number of partners buying its
products, of which Boots and Costco are good examples, and build its
e-commerce presence in multiple territories to create a more robust business
for the future.
OptiBiotix is operating in an exciting and evolving market place with gut
health and modulation of the human microbiome attracting ever-increasing
interest as the potential solution to a wide and growing range of life-style
related health challenges. Unique, innovative products take time to gain
market acceptance and our products are no exception. We believe their strong
science, clinical studies, and broad IP portfolio together with the industry
awards and great customer reviews are starting to attract growing
international recognition and with this more sales opportunities. Successful
launches with established national and international retailers such as Holland
and Barett, Europe's largest health and wellness retailer with over
1,600 stores in 18 countries across the world, gives our product credibility
furthering sales opportunities in other territories. This has changed
discussions from the science to commercial discussions on which products to
launch and timings of launch. The agreements with Boots, Costco, and a large
USA sports nutrition brand in the last few months are good examples of this
and if successful have the potential to contribute significantly to revenues
in 2024 and beyond.
Our early success in the USA and Asian markets with new customers support this
proposition with initial sales suggesting high growth potential in these
markets. This is supported by the credibility of our science and success
stories with partners like THG and Apollo which demonstrates our products
customer appeal and its ability to attract new and returning customers.
We are confident that our strategy will continue to deliver sales growth in
2023 whilst the approaching commercialisation of our second-generation
SweetBiotix® family of products and microbiome modulators offer exciting
potential for future growth. We believe the launch of either of these products
will be transformational for the Company and offer shareholders the potential
for a significant enhancement in the value of the Company.
This is in addition to the Company having a continued exposure to the
considerable growth potential in probiotics and skincare through the Group's
shareholdings in ProBiotix Health plc and SkinBioTherapeutics plc.
N Davidson and S O'Hara
27 September 2023
Consolidated Statement of Comprehensive Income
For the six months to 30 June 2023
6 months to 6 months to Year to
30 June 30 June 31 December 2022
2023 2022 Audited
Unaudited Unaudited
Continuing operations £'000 £'000 £'000
Revenue 351 119 457
Cost of sales (193) (57) (213)
─────── ─────── ───────
Gross Profit 158 62 244
Share based payments - (6) (11)
Depreciation and amortisation (93) (117) (224)
Other administrative costs (825) (985) (2,498)
─────── ─────── ───────
Total administrative expenses (918) (1,108) (2,733)
─────── ─────── ───────
Operating loss (760) (1,046) (2,489)
Finance income / (costs) - - -
Share of (loss)/profit from associate (226) 91 (83)
Loss on fair value of investments (1,066) (6,788) (8,620)
Profit on disposal of investments 198 - 16
Profit on disposal of subsidiary - 21,647 21,647
Provision against associate valuation - - (8,030)
─────── ─────── ───────
Profit/(Loss) before Income tax (1,854) 13,904 2,441
Income tax 8 12 146
─────── ─────── ───────
(Loss)/Profit for the period (1,846) 13,916 2,587
Other Comprehensive Income - - -
─────── ─────── ───────
Total comprehensive income for the period 2,587
(1,846) 13,916
═══════ ═══════ ═══════
Total comprehensive income attributable to the owners of the group 2,587
(1,846) 13,916
Dividends - (10,258) -
═══════ ═══════ ═══════
(1,846) 3,658 2,587
Earnings/(loss) per share
Basic & Diluted - pence 4 (2.09)p 4.15p 2.93p
═══════ ═══════ ═══════
Consolidated Statement of Financial Position
As at 30 June 2023
Notes As at As at As at
30 June 2023 30 June 2022 31 December 2022
Unaudited Unaudited Audited
ASSETS £'000 £'000 £'000
Non-current assets
Intangibles 1,463 2,233 1,540
Property, plant & equipment - 2 -
Investments 5 3,711 6,761 5,022
Investment is associate 5 2,903 11,333 3,129
─────── ─────── ───────
8,077 20,329 9,691
─────── ─────── ───────
CURRENT ASSETS
Inventories 179 128 178
Trade and other receivables 666 434 521
Current tax asset 106 68 106
Cash and cash equivalents 893 1,509 1,052
─────── ─────── ───────
1,844 2,139 1,857
─────── ─────── ───────
TOTAL ASSETS 9,921 22,468 11,548
═══════ ═══════ ═══════
EQUITY
Shareholders' Equity
Called up share capital 6 1,824 1,760 1,824
Share premium 2,958 2,545 2,958
Share based payment reserve 939 933 939
Merger relief reserve 1,500 1,500 1,500
Retained Earnings 1,838 15,014 3,684
─────── ─────── ───────
Total Equity 9,059 21,752 10,905
─────── ─────── ───────
LIABILITIES
Current liabilities
Trade and other payables 514 255 278
─────── ─────── ───────
514 255 278
─────── ─────── ───────
Non - current liabilities
Deferred tax liability 348 461 365
─────── ─────── ───────
348 461 365
─────── ─────── ───────
TOTAL LIABILITIES 862 716 643
─────── ─────── ───────
TOTAL EQUITY AND LIABILITIES 9,921 22,468 11,548
═══════ ═══════ ═══════
Consolidated Statement of Changes in Equity
For six months to 30 June 2023
Called up Share Share-based Non controlling Interest Merger Retained Earnings Convertible Total
Share premium Payment Relief Loan note Equity
Capital reserve Reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
────── ─────── ─────── ────── ────── ────── ──── ───────
Balance at 31 December 2021 1,759 2,537 927 35 1,500 11,320 93 18,172
Profit for the period - - - - - 13,916 - 13,916
Dividends - - - - - (10,258) - (10,258)
Transfer on loss of control - - - - - - (93) (93)
Share issues 1 8 - - - - - 9
Transfer within reserves - - - (35) - 35 - -
Share based payment - - 6 - - - - 6
────── ─────── ─────── ────── ────── ────── ────── ───────
Balance at 30 June 2022 1,760 2,545 933 - 1,500 15,014 - 21,752
────── ─────── ─────── ────── ────── ────── ────── ───────
Loss for the period - - - - - (11,330) - (11,330)
Fundraising commission - (24) - - - - - (24)
Share issues 64 437 - - - - - 501
share based payment - - 6 - - - - 6
────── ────── ────── ────── ────── ────── ────── ──────
Balance at 31 December 2022 1,824 2,958 939 - 1,500 3,684 - 10,905
────── ────── ────── ────── ────── ────── ────── ──────
Loss for the period - - - - - (1,846) - (1,846)
────── ────── ────── ────── ────── ────── ────── ──────
Balance at 30 June 2023 1,824 2,958 939 - 1,500 1,838 - 9,059
────── ────── ────── ────── ────── ────── ────── ──────
Consolidated Statement of Cash Flows
For the six months to 30 June 2023
Notes 6 months to 6 months to Year
30 June 30 June to
2023 2022 31 December 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Reconciliation of loss before income tax to cash outflow from operations
Operating loss (760) (1,046) (2,489)
Decrease/ (Increase) in inventories (1) (36) (76)
(Increase)/decrease in trade and other (144) 658 1,116
receivables
(Decrease)/increase in trade and other 236 (211) (19)
payables
Share Option expense - 6 11
Amortisation of patents 92 118 224
────── ────── ──────
Net cash outflow from operations (577) (512) (1,233)
Tax paid (9) 98 124
────── ────── ──────
Net cash outflow from operating activities (586) (414) (1,109)
Cash flows from investing activities
Purchase of intangible assets (15) (58) (168)
Net cashflow re disposal of subsidiary - (35) (188)
Proceeds on disposal of investments 442 - 25
────── ────── ──────
Net cash (outflow)/inflow from investing activities 427 (507) (331)
────── ────── ──────
Cash flows from financing activities
Share issues - 9 485
────── ────── ──────
Net cash inflow from financing activities - 9 485
────── ────── ──────
Increase/(decrease) in cash and equivalents (159) (498) (955)
Cash and cash equivalents at beginning of year 1,052 2,007 2,007
────── ────── ──────
Cash and cash equivalents at end of year 893 1,509 1,052
══════ ══════ ══════
Notes to the Half Yearly Report
For the six months to 30 June 2023
1. General Information
Optibiotix Health Plc is a company incorporated and domiciled in England and
Wales. The company's registered office is 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 2022, prepared under UK - adopted 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 UK - adopted
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 2022.
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 four highly interconnected markets, all costs assets and
liabilities are derived from the UK location.
Revenue analysed by market
6 months to 6 months to Year ended
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
Probiotics - 24 24
Functional Fibres 351 95 433
────── ────── ──────
351 119 457
══════ ══════ ══════
Following the loss of control of Probiotix Health plc on 31 March 2022, all
group revenues since then have been derived from functional fibres.
Revenue analysed by geographical market
Period ended 6 months to Year ended
30 June 30 June 31 December 2022
2022 2022
£'000 £'000 £'000
UK 142 48 136
US - 15 100
India - - 61
Rest of world 209 56 160
────── ────── ──────
351 119 457
══════ ══════ ══════
During the reporting period one customer represented £116,256 (33.1%) of
Group revenues. (June 2022: one customer generated £49,668 representing 41.8%
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 30 June 2023
Weighted average
Basic and diluted EPS Earnings Number of shares Profit per-share
£'000 No. Pence
Basic and diluted EPS (1,846) 88,279,952 2.09
══════ ════════ ══════
6 months to 30 June 2022
Weighted average
Earnings Number of shares Profit per-share
£'000 No. Pence
Basic and diluted EPS 3,658 88,047,596 4.15
══════ ════════ ══════
Year to 31 December 2022
Weighted average
Earnings Number of shares Profit per-share
£'000 No. Pence
Basic and diluted EPS 2,587 88,279,952 2.93
══════ ════════ ══════
As at 30 June 2023 there were 7,182,907 outstanding share options.
5. Investments
Available for sale investments
Carrying value £'000
At 31 December 2021 13,651
Revaluations (6,890)
──────
Carrying amount
At 30 June 2022 6,761
Revaluations (1,730)
Disposal of shares (9)
──────
Carrying amount
At 31 December 2022 5,022
Disposal of shares (244)
Revaluations (1,067)
──────
3,711
══════
Investment in associates
Carrying value £'000
At 31 December 2021 -
Additions 11,242
Share of profit 91
──────
Carrying amount
At 30 June 2022 11,333
Share of loss (174)
Impairment in the period (8,030)
──────
Carrying amount 3,129
At 31 December 2022
Share of loss (226)
──────
Carrying amount 2,903
At 30 June 2023 ══════
Total value of investments at 30 June 6,614
2023
══════
6. Share Capital
Issued share capital comprises:
6 months 6 months Year to 31
to 30 June to 30 June December
2023 2022 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Ordinary shares of 2p each 1,824 - 1,824
87,940,601
Ordinary shares of 2p each - 1,760 -
88,065,601
─────── ─────── ───────
1,824 1,760 1,824
═══════ ═══════ ═══════
7. Post balance sheet events
On 26 July 2023 Stephen Hammond and Chris Brinsmead stepped down from the
Board.
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