REG - OptiBiotix Health - Trading Update

OptiBiotix HealthAnnouncement

28/02/2022 07:00

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RNS Number : 9135C  OptiBiotix Health PLC  28 February 2022

OptiBiotix Health plc

("OptiBiotix" or the "Company" or "the Group")

 

Trading Update

 

OptiBiotix Health plc (OptiBiotix), a
life sciences business developing compounds to tackle obesity,
cardiovascular disease and diabetes, provides the following unaudited trading
update ahead of the Group's final results for the year ended 31 December 2021.
 

 

Financial update

This update reports on the 12 months of the financial year ending 31 December
2021. These are preliminary and unaudited figures and are provided to give
investors an insight into the progress of the Company and may differ from
reported full year audited results.

 

Total invoiced sales for the Group were £2.2m (2020: £1.5m) an increase of
46.7% on the previous year and in line with market expectations.
Administrative expenses (excluding non-cash items such as share based payments
and amortisation) were £2.1m (2020: £1.6m), an increase of 31.3% on the
previous year, largely due to one-off recruitment and consultancy costs and
investment in expanding the team as previously announced in the Company's
interim results
(https://www.londonstockexchange.com/news-article/OPTI/half-year-report/15154582)
. Intellectual property, R&D, and travel costs decreased as patents were
granted and the effects of COVID-19 reduced research and development activity
with partners. Gross profit increased to £1.2m up 36.5% on 2020 (£879k).

 

Both the Company's Prebiotic and Probiotic businesses contributed to strong
sales performance and were profitable during the year:-

OptiBiotix's wholly owned subsidiary, ProBiotix Health Ltd (ProBiotix),
delivered an EBITDA profit of £195k, a 122% increase on 2020 (£88k) with
total sales of £1.1m (2020: £821k), up 34%. Income for 2020 included a
£250k milestone payment for the development of LPLDL into a
biopharmaceutical, giving an underlying product sales growth of 92.6% for the
period. ProBiotix signed four commercial agreements during 2021, the most
significant being the expansion of territories with Seed Health from the USA
to include Europe, Oceania (Australia, New Zealand etc), and Asia (excluding
India) for the supply of LP(LDL)® in Seed(TM')s DS-01 product, a multi-strain
synbiotic product which contains OptiBiotix's Lactobacillus plantarum
LP(LDL)®.

 

OptiBiotix's Prebiotic ingredient business delivered an EBITDA profit of
£83k, a 23% increase on 2020 (£67k) with total sales of £1.1m (2020:
£557K), up 97.5%. Underlying sales, excluding licensing fees, increased by
122%. Sales of its prebiotic weight management ingredient SlimBiome to
existing partners developed well. Three new commercial agreements were signed
with market leading partners: MyProtein part of The Hut Group, Apollo
Hospitals (India) and Nahdi Medical (KSA). The new agreements extended the
geographic reach into the main markets of Europe and Asia and the launch of
prebiotic lean muscle mass support ingredient LeanBiome created an entry point
into the lucrative and fast growing sports nutrition market.

 

As at 31 December 2021, the Company held £2.04m cash in the bank (2020:
£865k). Once R&D tax credits, recoverable VAT, and debtors and creditors
are accounted for the balance is £3.2m (2020: £1.4m).

 

The Company holds 20.7% of the issued share capital of SkinBiotherapeutics plc
(AIM: SBTX), which is valued as of 31 December 2021 at £13.7m (2020: £8.9m).

 

Stephen O'Hara, CEO of OptiBiotix, commented: "This has been another year of
progress for OptiBiotix with its probiotic and prebiotic businesses growing
sales and profitability in a challenging and uncertain global economic
environment. The Company has made good progress against its stated aims of
focusing on a smaller number of large partners in key strategic markets and
expects to see the benefits of these in 2022 and beyond.

 

"The Company is in a strong position with profitable trading divisions, an
appreciating asset in SkinBioTherapeutics plc, and a strong balance sheet
allowing it to invest and expand sales and marketing capabilities, bring its
second generation products to markets, and in-license or acquire technology to
ensure a continuous pipeline of technology solutions to ensure diversified
future growth of the group across multiple opportunities in this exciting area
of healthcare."

 

This announcement contains inside information for the purposes of 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

 Cenkos Securities plc (Broker)                    Tel: 020 7397 8900
 Callum Davidson / Neil McDonald
 Michael Johnson / Russell Kerr (Sales)

 Walbrook PR Ltd                                   Mob: 07876 741 001
 Anna Dunphy

 

About OptiBiotix - www.optibiotix.com (http://www.optibiotix.com)

OptiBiotix Health plc (AIM: OPTI), which was formed in March 2012, brings
science to the development of compounds which modify the human microbiome -
the collective genome of the microbes in the body - in order to prevent and
manage human disease and promote wellness.

 

OptiBiotix has an extensive R&D programme working with leading academics
in the development of microbial strains, compounds, and formulations which are
used as active ingredients and supplements. More than twenty international
food and healthcare supplement companies have signed agreements with
OptiBiotix to incorporate their human microbiome modulators into a wide range
of food products and drinks.

 

OptiBiotix is also developing its own range of consumer supplements and health
products. The Company's current areas of focus include obesity, cardiovascular
health, and diabetes.

 

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