REG - OptiBiotix Health - Half-year Report
27/09/2024 07:00
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RNS Number : 8786F OptiBiotix Health PLC 27 September 2024
27 September 2024
Half yearly Report
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 2024.
Highlights
· Significantly increased order book and solid sales performance
· Reported revenues decreased by 21.3% to £276K (H1 2023: £351k),
although sales orders received during the period were substantially higher
than in H1 2023
· Strong strategic and commercial progress achieved in the first half
has continued in the second half to date
· E-commerce sales increased three-fold
· Healthy balance sheet with gross assets of £8.0m (30 June 2023:
£9.9m), no debt and cash of £1,263K (30 June 2023: £893K)
· Successful placing to raise £1,350,500 through the issue of
6,752,500 new ordinary shares of 2 pence each in the Company in March 2024
· Launch of LeanBiome® in Muscletech®, a leading sports nutrition
brand
· Partnership agreement with Morepen for SlimBiome® containing
finished products
· Manufacturing agreement with KAG Industries
· Roehampton University submitting the results of a third human study
on SlimBiome® for publication, which demonstrated statistically significant
benefits to appetite and hunger regulation with no safety, compliance or
tolerance issues reported by the participating volunteers. This study
underlined the effectiveness of a single dose of SlimBiome® in delivering
hunger-free weight loss by non-invasive means, and was timely in view of the
growing consumer, media and pharmaceutical interest in this field
Stephen O'Hara, CEO of OptiBiotix Health plc said: "The fundamentals of our
marketplace remain very exciting, with a range of recent market reports
highlighting that products across the entire OptiBiotix portfolio have the
potential to meet growing demand as solutions to a wide and increasing range
of lifestyle-related health challenges. Given the excellent customer reviews,
high customer return rates, multiple industry awards, and new customers
launching products in key markets we believe there is a substantive
opportunity to leverage market interest by increasing customer awareness of
our products either directly through social media channels or indirectly
through investing with our partners, and so build a successful and profitable
business.
"The commercial traction we are now enjoying in our first-generation products
with large partners in key markets, and the interest shown by other partners
in our potentially industry-changing second-generation products, allows us to
look to the future with a high degree of confidence. In the shorter term,
based on orders already placed, we are also confident that full year revenues
will be well ahead of those reported in 2023.
"With appetite suppression, gut health, sugar alternatives and modulation of
the human microbiome all attracting ever-increasing interest, we believe that
the Company is strongly placed to achieve profitability through growing sales
of its now proven first-generation products, while progressing towards the
commercialisation of our even more exciting second-generation products,
SweetBiotix® and human microbiome modulators.
"We are confident that our strategy will deliver an improved sales performance
for the rest of this year, and will continue in 2025, 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.
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
We are pleased to report good progress towards all our main strategic
objectives for 2024:
· increasing our number of partners and sales in our key target markets
of the USA and Asia;
· investing in e-commerce channels to drive direct-to-consumer sales;
· and growing our sales of final branded or white label products
containing our ingredients so as to deliver a dual income stream.
The strong sales momentum re-established after our senior management change in
2023 has continued, with orders placed by the end of H1 2024 almost matching
our reported revenue for the whole of 2023, and a number of business areas
achieving or moving close to profitability in line with our plans.
Strategic overview
The Company's strategy is to focus on global markets with exceptional growth potential and to target these with a diverse portfolio of highly differentiated, clinically proven and patented products. We have adopted a layered two-generation approach to the development of our product portfolio with the aim of progressively building credibility and awareness of the Company in order to reduce risk and maximise opportunities for our investors.
The unique compounds OptiBiotix has created address what are recognised as
some of the world's fastest-growing public health challenges: obesity,
cardiovascular disease and diabetes. With appetite suppression, gut health,
sugar alternatives and modulation of the human microbiome all attracting
ever-increasing interest, we believe that the Company is well placed to
achieve profitability through growing sales of its now proven first-generation
products, while progressing towards the commercialisation of our even more
exciting second-generation products, SweetBiotix® and human microbiome
modulators.
The years we have spent undertaking clinical studies to establish robust
health claims in multiple international markets for our first-generation
products mean that SlimBiome® has now achieved strong scientific credibility
and acceptance by major partners and consumers as a proven aid to weight
management. We have also successfully extended our technology into new
channels such as sports nutrition with LeanBiome®, already incorporated into
two of the world's leading sports nutrition brands, Myprotein and MuscleTech,
and into new product areas such gut and digestive health with WellBiome®.
More recently, we have been able to capitalise on the huge public and media
interest in injectable weight loss GLP-1 agonists like Semaglutide, marketed
as Ozempic and Wegovy. Whilst SlimBiome® and the GLP-1 agonists both
regulate insulin response and slow down stomach emptying improving appetite
control, SlimBiome® works in a totally natural, non-invasive way and without
any adverse side effects. Recent work with dieticians at a specialist London
obesity clinic indicates that SlimBiome® may also have potential as an
adjunct to treatment with Ozempic/Wegovy. Work is ongoing to explore whether
combining SlimBiome® with these drugs may help to reduce drug dosage, and
thereby the cost of treatment and side effects, and enhance or prolong the
appetite suppressant effect of the drugs.
Whilst initial discussions and assessment are with specialist weight
management clinics largely in London, if these early findings are confirmed we
will go direct to the pharmaceutical companies selling these products to
explore the potential of using SlimBiome, probably by a different name, as an
adjuvant to drug treatment.
We are also progressing towards commercialisation of the second-generation
SweetBiotix® and microbiome modulator family of products which offer
shareholders the potential for significant value enhancement. The Company has
seen a high level of corporate interest in these second-generation products
and is in discussion with a wide range of industry partners over product
application and launch timescales, some already announced and some with new
potential partners. Given we are working with large corporate partners in
both manufacturing scale up and use in final product these are complex
discussion where confidentiality is paramount.
We also see very significant further potential for revenue growth and value
creation through the development of microbiome modulators, which apply our
unique patented technologies to precision engineer the human microbiome to
enhance those microbes that deliver health benefits. This is an emerging field
of research and development for both the food and pharmaceutical industries,
which we believe offers the opportunity to transform healthcare. Whilst the
technology is applicable to a wide range of probiotics the commercial focus
for our first product is Lactobacilli as they make up 65% market share by
revenue (Coherent Market Insights, 2023) of the global probiotic market, which
is valued at $57.8 billion (Mordor Intelligence, 2022). The creation of
synergistic synbiotics which improve the growth rate, gut survival, and
improve efficacy of existing probiotics is a new opportunity in the highly
competitive probiotic industry. Opportunities exist to supply large corporates
with a product which has the ability to improve all their products containing
Lactobacilli, or codevelop, or license the technology for specific species.
The Company asks shareholders to be patient and respect our need for
confidentiality in the development of its second-generation portfolio, and
will make announcements on its progress as research milestones are reached or
agreements with partners are concluded.
We have a high level of confidence in the scale of the opportunity within
OptiBiotix and our ability to deliver sustained growth for shareholders in the
years ahead.
Consumer Health and E-commerce
OptiBiotix has made significant investments in its e-commerce business to
drive direct-to-consumer sales as a strategic move to reduce reliance on
retail partners and to increase profit margins. The Consumer Health division
has the advantage of receiving online sales income immediately and allows more
control over the Company's brands and messaging whilst reducing reliance on
distributors.
The Consumer Health division has continued to grow rapidly during the year
with sales to 30 June 2024 exceeding the £151K achieved for the whole of
2023, and showing a three-fold increase over H1 2023. The biggest contributor
to H1 sales was China, with our own OptiBiotix Online website and Amazon UK
making up the rest with a roughly equal split, together with a small
contribution from Amazon UAE which launched late in H1 2024.
In China, the shift in focus from TikTok to Tmall noted in the annual report
has led, as expected, to fewer but more sustainable sales at a much lower
marketing cost and an improvement in profitability.
The UK has delivered the strongest growth in direct-to-consumer sales this
year. Our own OptiBiotix Online direct sales operation, with much lower
marketing costs, has returned a positive contribution to shared e-commerce
costs every month in 2024 to date. Sales through Amazon UK have shown the
highest growth rate of all our online channels, but the platform has been loss
making, reflecting the investment in marketing to grow our customer base.
However, 25% of all Amazon customers pay by monthly subscription as repeat
customers and, as the Company grows its customer and subscriber base, and
increases sales from repeat purchases, marketing costs typically reduce as a
percentage of sales and this is expected to lead to profitability. SlimBiome®
remains among Amazon's top sellers for appetite suppressants and achieved
record sales during Prime month in July 2024, while our SnackSmart SlimBiome®
Indulgence bars are now among Amazon's Top 10 best sellers in the 'diet bars'
category. WellBiome® has also quickly established itself as a strong seller
on the platform with a 4.7* rating.
After waiting many months for a European VAT certificate, the Company can now
sell through new Amazon channels in Germany and we are starting to see sales
flow in this territory in H2. Amazon India is expected to follow in early
October 2024. As we increase the number of countries into which we sell
directly to consumers via Amazon, and we optimise our product offering in
different markets, we look forward to continued sales growth through the
remainder of 2024 and beyond.
North America
We have made good progress towards our strategic goals of increasing our
number of partners and growing our sales within the USA, the world's largest
economy.
At the beginning of 2024, we were pleased to report the launch of LeanBiome®
in MuscleTech's Nitro Tech Ripped range, a premium protein powder designed to
support athletes who want to lose fat and build lean muscle. MuscleTech
defines itself as the No.1 selling Bodybuilding Supplement Brand in America -
https://www.muscletech.ca/research/ (https://www.muscletech.ca/research/) -
and the inclusion of LeanBiome® in this leading global sports brand is a
significant endorsement of our product. Muscletech has continued to fill its
distribution network in Europe, where sales to date have exceeded
expectations, with further orders for LeanBiome® anticipated in H2 2024, and
a launch in the much larger North American market under consideration.
LeanBiome® is now included in two leading sports nutrition brands, Myprotein
and MuscleTech, a global market worth $45.2bn in 2023 and expected to grow at
a CAGR of 7.5% per annum to 2030 (Grand View Research, 2023).
In line with our strategy of selling more final product and expanding our
interests in the USA, the Company has continued to progress sales
opportunities with a number of large North American corporates. As announced
on 29 July 2024, the Company was pleased to receive its first order from one
of these, a NASDAQ listed USA e-commerce and direct selling company, for a
tomato soup final product containing SlimBiome® which is expected to be
launched in January 2025 in Hong Kong for cross-border sales into China for
Chinese New Year, and subsequently sold in the USA.
Discussions are ongoing with a number of other large US partners to include
our ingredients in partner final products. These include SlimBiome® and
SweetBiotix® (which has been developed in a finished product for a large
global partner) and our microbiome modulators. The Company is hopeful that
further announcements with corporate partners in the USA will be made in due
course.
OptiBiotix Health India
India is already the most populous nation on Earth, anticipated to have the
world's largest cohort of medium to high level income consumers by 2035 and to
become the planet's second largest economy by the 2050s. With obesity
prevalence already measured at 40.3%, it presents a huge area of opportunity
for weight management products in particular, and our strategic investment in
establishing OptiBiotix Health India in 2021 has given us a strong platform
for growth through the local manufacture and sale of both ingredients and
final products.
The business took a material step forward with the announcement on 13 March
2024 of a major new five-year partnership agreement with Morepen to sell
products containing SlimBiome® under the Dr Morepen brand: an established,
well known, and trusted brand in the Indian market. OptiBiotix will receive
revenue for both the ingredient and final product sales. The first order
received in May 2024 for 5 flavoured shots has been increased and a further
order received for a chocolate shake. Further products are under development
for launch in 2025.
This is the first time OptiBiotix has coinvested in marketing with a partner
to try to rapidly achieve a large market share in a major market. Morepen
have confirmed launch dates within H2 and these will be announced in
conjunction with Morepen and associated the marketing activities. As announced
on 13 March 2024, based on Morepen's current forecasts, this agreement could
contribute in the region of £6 - £7 million revenue per annum to OptiBiotix
by the fifth year of the partnership.
We have signed a supply contract with KAG Industries as our alternative
manufacturing partner in India to mitigate the risk of relying on a single
partner in the territory, and they have commissioned machinery specifically to
supply product for Dr Morepen and are advertising SlimBiome® in their forums
and exhibitions.
We continue to sell GoFigure® products through approximately 1,000 Apollo
Pharmacies stores across India, with a new product launch scheduled for next
month, with improved branding and flavours. A launch on Amazon India is also
scheduled for October 2024 in addition to pursuing a strong pipeline of other
opportunities with leading and emerging players in weight management and
sports nutrition in the country.
We believe that our agreement with Morepen and the upcoming launch of more
products under the Dr Morepen brand, plus other partner launches planned for
Autumn 2024 and the reorder of products by Apollo pharmacies could generate
significant revenues and bring profitability to this part of the business
during 2024.
Asia
In 2023, OptiBiotix signed agreements with four new partners in Asia for
SlimBiome® and to date we have received just under £80,000 worth of initial
orders. These partners include Nasol Pharma International (Vietnam), Bonanaza
Neutra (Thailand), Colorinda Chemtra (Indonesia), and NexusWise (Malaysia and
Singapore): all well-known specialist distributors in their field of expertise
who will work with local manufacturers and brands to launch products
containing SlimBiome®. The Board believes this is a strategic investment in
high growth markets that are anticipated to grow relatively slowly but have
the potential to deliver significant revenues in the future.
Results
Our results for the six months ended June 30 2024 are set out below, and show
revenue falling by 21.3% to £276K (H1 2023: £351k), despite a significantly
increased order book. As mentioned above, our e-commerce sales increased
three-fold, but with lower reported sales from our wholesale business. The
nature of the wholesale business can see significant fluctuations in reported
sales between reporting periods, as is apparent in these results, with H1 2023
including a sale of over £100K to North America to support the MuscleTech
consumer launch.
Sales orders received during the period were substantially higher than in H1
2023, but IFRS 15 accounting rules allow us to include revenue only when goods
are accepted by our customer, even when prepayment for them may have been
received. The growing gap between the placement of orders and the recording of
revenue reflects our success in attracting newer and larger overseas partners
who are placing orders for final products rather than ingredients, and the
longer timescales involved between placing an order for a new product launch
and the customer ultimately accepting the goods once manufactured. To the date
of this statement, the total of reported sales and confirmed orders exceeds
our total 2023 sales of £644K.
Administration expenses increased to £1,177K (H1 2023: £918K). H1 2023
benefitted from a £125K bad debt recovery, whilst our significant increase in
on-line sales also comes with a corresponding growth in marketing and
commission costs. There were no other significant cost changes. As a result,
the Company recorded an operating loss of £1,066K (H1 2023: £760K). The
reported loss before taxation was £2,799K (H1 2023: £1,854K). The mark to
market downwards valuation of our investment in SkinBiotherapeutics Plc was
£1,655K (2023 H1: £1,066K), although our share of loss from our associate,
ProBiotix Health Plc, decreased from £226K to £118K. We also made a small
gain on the disposal of a portion of our shareholding in SkinBioTherapeutics
Plc of £40K (2023 H1: £198K).
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 continues to enjoy a healthy balance sheet with gross assets of
£8.0m (30 June 2023: £9.9m), no debt and cash of £1,263K (30 June 2023:
£893K).
Outlook
The strong strategic and commercial progress we have achieved in the first
half has continued in the second half to date. The commercial agreements we
have secured with new and larger partners in key strategic markets, and our
increasing emphasis on the sale of customer own brand finished products rather
than stock ingredients, mean that production and delivery times, particularly
for the first order are longer. This is because we have to work with the
customer on developing the formulation, design and artwork, and packaging
unique to the product. The customer has a proprietary own brand product which
they are more likely to invest in marketing and grow the brand. However, for
the first-year orders received and confirmed in H1 (e.g. Morepen, KAG, Apollo
new products) will not be reportable under IFRS until H2, when the goods are
accepted by the customer, even though prepayment may have been received (RNS:
20 August 2024). We believe that whilst this adds more complexity to the
supply chains and there is often a six-to-eight-month lag between first orders
being placed and delivered this is justified by the increase in sales of both
ingredient and product, larger orders, and higher margin. We have seen the
initial stages of this transition in India and the USA in H1 and hope to
announce further orders with corporate partners in the USA and India as they
are confirmed.
Our Consumer Health division continues to trade strongly, with fresh records
for Amazon sales expected to be set in November 2024 through the stimulus of
Black Friday events. In China, we are examining the placement of our products
in new platforms and categories to circumvent unexpected restrictions on the
weight loss category in the country, which have prevented us from advertising
our products on large platforms such as TikTok. We have recently signed an
agreement with our UAE distributor to trade into Saudi Arabia and are
exploring plans to extend onto additional ecommerce platforms in the UAE.
In the USA, we are currently finalising label claims and a trademark licensing
agreements for SlimBiome® with a leading weight management brand and pursuing
several other projects including a fully developed beverage concept with a
large retail and ecommerce brand focused on the microbiome, which is expected
to launch online and then with existing major retail partners in Q4 2024 or Q1
2025. We are in the early stages of developing a sachet concept with
SlimBiome® for potential launch in mid-2025 with a major US retailer whilst a
Hong Kong-based ecommerce company focused on North America is looking to
reformulate its flagship daily prebiotic with WellBiome®.
We have a number of new products under development in India as part of a range
extension for Morepen and other partners including new six calorie button
gummies, new formula breakfast, dinner and snack shakes, and new high protein,
high fibre, low calorie bar containing SlimBiome®.
As our products launch with new partners in new territories, the Company's
focus will be on supporting our partners with training and marketing assets to
ensure sales growth and repeat orders. In some cases where the market
opportunity justifies it, as with Morepen, we will coinvest to ensure we can
rapidly scale the opportunity.
The fundamentals of our marketplace remain very exciting, with a range of
recent market reports highlighting that products across the entire OptiBiotix
portfolio have the potential to meet growing demand as solutions to a wide and
increasing range of lifestyle-related health challenges. Given the excellent
customer reviews, high customer return rates, multiple industry awards, and
new customers launching products in key markets we believe there is a
substantive opportunity to leverage market interest by increasing customer
awareness of our products either directly through social media channels or
indirectly through investing with our partners, and so build a successful and
profitable business.
The commercial traction we are now enjoying in our first-generation products
with large partners in key markets, and the interest shown by other partners
in our potentially industry-changing second-generation products, allows us to
look to the future with a high degree of confidence. In the shorter term,
based on orders already placed, we are also confident that full year revenues
will be well ahead of those reported in 2023.
N Davidson and S O'Hara
27 September 2024
Consolidated Statement of Comprehensive Income
For the six months to 30 June 2024
6 months to 6 months to Year to
30 June 30 June 31 December 2023
2024 2023 Audited
Unaudited Unaudited
Continuing operations £'000 £'000 £'000
Revenue 276 351 644
Cost of sales (165) (193) (324)
─────── ─────── ───────
Gross Profit 111 158 320
Share based payments - - (6)
Depreciation and amortisation (106) (93) (205)
Other administrative costs (1,071) (825) (1,804)
Administrative expenses (1,177) (918) (2,015)
─────── ─────── ───────
Operating loss (1,066) (760) (1,695)
Finance income / (costs) - - 1
Share of (loss)/profit from associate (118) (226) (323)
Loss on fair value of investments (1,655) (1,066) (513)
Profit on disposal of investments 40 198 487
─────── ─────── ───────
Profit/(Loss) before Income tax (2,799) (1,854) (2,043)
Income tax 8 8 4
─────── ─────── ───────
(Loss)/Profit for the period (2,791) (1,846) (2,039)
Other Comprehensive Income - - -
─────── ─────── ───────
Total comprehensive income for the period (2,039)
(2,791) (1,846)
═══════ ═══════ ═══════
Total comprehensive income attributable to the owners of the group (2,039)
(2,791) (1,846)
Dividends - - -
═══════ ═══════ ═══════
(2,791) (1,846) (2,039)
Earnings/(loss) per share
Basic & Diluted - pence 4 (2.96) p (2.08)p (2.24) p
═══════ ═══════ ═══════
Consolidated Statement of Financial Position
As at 30 June 2024
Notes As at As at As at
30 June 2024 30 June 2023 31 December 2023
Unaudited Unaudited Audited
ASSETS £'000 £'000 £'000
Non-current assets
Intangibles 1,225 1,463 1,331
Investments 5 2,182 3,711 3,887
Investment is associate 5 2,688 2,903 2,806
─────── ─────── ───────
6,095 8,077 8,024
─────── ─────── ───────
CURRENT ASSETS
Inventories 258 179 188
Trade and other receivables 393 666 460
Current tax asset 21 106 97
Cash and cash equivalents 1,263 893 635
─────── ─────── ───────
1,935 1,844 1,380
─────── ─────── ───────
TOTAL ASSETS 8,030 9,921 9,404
═══════ ═══════ ═══════
EQUITY
Shareholders' Equity
Called up share capital 6 1,959 1,824 1,824
Share premium 4,107 2,958 2,958
Share based payment reserve 772 939 772
Merger relief reserve 1,500 1,500 1,500
Retained Earnings (973) 1,838 1,818
─────── ─────── ───────
Total Equity 7,365 9,059 8,872
─────── ─────── ───────
LIABILITIES
Current liabilities
Trade and other payables 313 514 180
─────── ─────── ───────
313 514 180
─────── ─────── ───────
Non - current liabilities
Deferred tax liability 352 348 352
─────── ─────── ───────
352 348 352
─────── ─────── ───────
TOTAL LIABILITIES 665 862 532
─────── ─────── ───────
TOTAL EQUITY AND LIABILITIES 8,030 9,921 9,404
═══════ ═══════ ═══════
Consolidated Statement of Changes in Equity
For six months to 30 June 2024
Called up Share Share-based Merger Retained Earnings Total
Share premium Payment Relief Equity
Capital reserve Reserve
£'000 £'000 £'000 £'000 £'000 £'000
────── ─────── ─────── ────── ────── ───────
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
────── ─────── ─────── ────── ────── ───────
Loss for the period - - - - (193) (193)
Movement on reserves - (173) - 173 -
Share options and warrants - - 6 - - 6
────── ────── ────── ────── ────── ──────
Balance at 31 December 2023 1,824 2,958 772 1,500 1,818 8,872
────── ────── ────── ────── ────── ──────
Loss for the period - - - - (2,791) (2,791)
Issue of shares during the period 135 1,149 - - - 1,284
────── ────── ────── ────── ────── ──────
Balance at 30 June 2024 1,959 4,107 772 1,500 (973) 7,365
────── ────── ────── ────── ────── ──────
Consolidated Statement of Cash Flows
For the six months to 30 June 2024
Notes 6 months to 6 months to Year
30 June 30 June to
2024 2023 31 December 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Reconciliation of loss before income tax to cash outflow from operations
Operating loss (1,066) (760) (1,695)
Decrease/ (Increase) in inventories (70) (1) (10)
Decrease/(Increase) in trade and other 67 (144) 61
receivables
(Decrease)/increase in trade and other 133 236 (98)
payables
Share Option expense - - 6
Amortisation of patents 106 92 205
Impairment of patents - - 5
────── ────── ──────
Net cash outflow from operations (830) (577) (1,527)
Tax Received/(Paid) 85 (9) -
────── ────── ──────
Net cash outflow from operating activities (745) (586) (1,527)
Cash flows from investing activities
Purchase of intangible assets - (15) -
Proceeds on disposal of investments 89 442 1,110
────── ────── ──────
Net cash (outflow)/inflow from investing activities 89 427 1,110
────── ────── ──────
Cash flows from financing activities
Proceeds from issuance of shares 1,284 - -
────── ────── ──────
Net cash inflow from financing activities 1,284 - -
────── ────── ──────
Increase/(decrease) in cash and equivalents 628 (159) (417)
Cash and cash equivalents at beginning of year 635 1,052 1,052
────── ────── ──────
Cash and cash equivalents at end of year 1,263 893 635
══════ ══════ ══════
Notes to the Half Yearly Report
For the six months to 30 June 2024
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 2023, 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 2023.
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
2024 2023 2023
£'000 £'000 £'000
Functional Fibres 276 351 644
────── ────── ──────
276 351 644
══════ ══════ ══════
Revenue analysed by geographical market
Period ended 6 months to Year ended
30 June 30 June 31 December 2023
2024 2023
£'000 £'000 £'000
UK 163 142 221
US - 116 202
China 76 15 75
Rest of world 37 78 146
────── ────── ──────
276 351 644
══════ ══════ ══════
During the reporting period one customer represented £51,070 (18.5%) of Group
revenues. (June 2023: one customer generated £116,256 representing 33.1% 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 2024
Weighted average
Basic and diluted EPS Earnings Number of shares Profit per-share
£'000 No. Pence
Basic and diluted EPS (2,791) 94,455,606 (2.96)
══════ ════════ ══════
6 months to 30 June 2023
Weighted average
Earnings Number of shares Profit per-share
£'000 No. Pence
Basic and dilued EPS (1,847) 88,279,952 2.08
══════ ════════ ══════
Year to 31 December 2023
Weighted average
Earnings Number of shares Profit per-share
£'000 No. Pence
Basic and diluted EPS (2,038) 90,190,661 (2.24)
══════ ════════ ══════
As at 30 June 2024 there were 6,857,907 outstanding share
options.
5. Investments
Available for sale investments
Carrying value £'000
At 31 December 2022 5,022
Disposal of shares (244)
Revaluations (1,067)
──────
Carrying amount
At 30 June 2023 3,711
Revaluations 554
Disposal of shares (378)
──────
Carrying amount
At 31 December 2023 3,887
Disposal of shares (50)
Revaluations (1,655)
──────
As at 30 June 2024 2,182
══════
Investment in associates
Carrying value £'000
At 31 December 2022 3,129
Share of loss (226)
──────
Carrying amount
At 30 June 2023 2,903
Share of loss (97)
──────
Carrying amount
At 31 December 2023 2,806
Share of loss (118)
──────
Carrying amount 2,688
At 30 June 2024 ══════
4,870
Total value of investments at 30 June
2024
══════
6. Share Capital
Issued share capital comprises:
6 months 6 months Year to 31
to 30 June to 30 June December
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Ordinary shares of 2p each - 1,824 1,824
91,190,661
Ordinary shares of 2p each 1,959 - -
97,943,161
─────── ─────── ───────
1,959 1,824 1,824
═══════ ═══════ ═══════
7. Post balance sheet events
There were no post balance sheet events.
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