REG - SkinBioTherapeutics - Half-year Report
22/03/2024 07:00
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RNS Number : 8759H SkinBioTherapeutics PLC 22 March 2024
SkinBioTherapeutics plc
("SkinBioTherapeutics" or "the Company")
Half year results
Steady Organic Growth driven by AxisBiotix™ Sales and
Initiation of Inorganic strategy via Acquisition of Dermatonics
22 March 2024 - SkinBioTherapeutics plc (AIM: SBTX, or the "Company"), the
life science business focused on skin health, announces the consolidated
unaudited results for the six months to 31 December 2023.
Operational highlights
· SkinBiotix™ Croda/Sederma product development successfully
reaches penultimate phase
o Contract extended in October 2023 for a further 12 months to enable
clinical exploration of potential additional claims
o Clinical studies well progressed and set to conclude in early summer which
will be immediately followed by finalisation of the manufacturing process
and commercialisation which will run concurrently
o Post period end, positive site visit to Sederma manufacturing site in
Paris and a short video from the Sederma team will be shown in the Investor
Meet presentation today
· AxisBiotix-Ps™
o Good sales growth in the UK, with 523 subscribers (HY2023:134) monthly
retention rates of subscribers at 89% (HY2023: 83%)
o Commercial expansion - geographically into Europe, adding Italy and France
to Spain, and broadened sales channels via ecommerce (Amazon UK)
o Post period end - Positive interim data for acne consumer study (to week
5); completion of the study expected end March / April. Appointment of World
Products to expand AxisBiotix™ sales via Amazon across Europe and the USA
· Oral research and inflammation programmes progress well at the
University of Manchester
o Post period end, new research programme: the Epiderm study looking into
skin barrier function and woundcare led by SkinBiotix co-creator, Prof Andrew
McBain and Prof Sheena Cruickshank.
· Post period end, accretive acquisition of Dermatonics, a specialist in
innovative topical and dermatological products in the skincare/woundcare space
for an initial cash consideration of £1.68m plus a further earn-out over
three years of up to £1.25m based on the achievement of profitability
targets.
o Launch of One Heel Balm by the Umesh Modi Group across Asia, Middle East,
and Africa, brought forward to 1 March 2024.
· The CEO and CFO have volunteered to take a backdated 20% reduction
in their respective remuneration with effect from 1 January 2024.
· Professor Cath O'Neill has confirmed that she intends to stand down
as Chief Scientific Officer and move to a Scientific Adviser role so that she
can return to full time academia, as Professor of Translational Dermatology at
the University of Manchester.
Financial highlights
· Revenues up 38% to £106.6k (HY2023: £77.0k); majority of sales from
the UK, but sales starting to be recognised from European territories
· Operating loss of £1,386.2k (HY2023: loss £1,351.1k) with cost
base overall stable but impacted by inflationary pressures and
acquisition-related fees
· Cash and cash equivalents as at 31 December 2023 were £2.84m (30
June 2023: £1.31m), aided by Placing and Retail Offer of £3.3m (gross) in
November 2023
Stuart Ashman, CEO of SkinBioTherapeutics said:
"This has been an exciting half year and post period end for
SkinBioTherapeutics.
"The underlying consumer business has continued its steady progress, including
the scaling-up of manufacturing by Croda/Sederma and the commencement in
January of the clinical trials for SkinBiotix before commercialisation starts,
to the extension of sales geographies and channels for AxisBiotix-Ps. The
development pipeline for new programmes has continued to advance as well; of
particular note is the recent interim data at the half-way point from the acne
study which is looking very promising, and we await the final readout with
great anticipation.
"The first transformative event for the Company occurred post year end with
the acquisition of the profitable skin health company, Dermatonics which has
the potential upside from its distribution agreement with the Umesh Modi Group
and the earlier than expected market launch of its Once Heel Balm product into
the AMEA territories. We should have a better view of this impact as the year
progresses and we will update the market accordingly.
"Looking forward to the second half of the year, we continue to pursue our
inorganic growth strategy. Having listened to shareholders, we are seeking an
alternative financing mechanism, and we will keep you informed of our progress
directly."
-Ends-
The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.
Shareholder presentation and Q&A
CEO, Stuart Ashman, and CFO, Manprit Randhawa, will provide a live
presentation about the terms and rationale of the acquisition of Dermatonics
and the financing structure via the Investor Meet platform Friday 22 March at
12.00 (noon) GMT.
The presentation will also include recorded interviews with Greg Andrell,
former CEO of Dermatonics, and with Cecile Jonchier, R&D Biotech Manager
at Sederma and project lead for SkinBiotix.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard at any
time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet
SkinBioTherapeutics at the link HERE
(https://www.investormeetcompany.com/skinbiotherapeutics-plc/register-investor)
.
Investors who already follow SkinBioTherapeutics on the Investor Meet Company
platform will automatically be invited.
A recording of the presentation will be available shortly afterwards on the
SkinBioTherapeutics investor relations section of the website HERE
(https://www.skinbiotherapeutics.com/?s=investor+meet) .
For more information please contact:
SkinBioTherapeutics plc Tel: +44 (0) 191 495 7325
Stuart J. Ashman, CEO
Manprit Randhawa, CFO
Cavendish Capital Markets Limited Tel: +44 (0) 20 7220 0500
(Nominated Adviser & Broker)
Giles Balleny, Dan Hodkinson (Corporate Finance)
Charlie Combe (Broking)
Dale Bellis, Tamar Cranford-Smith (Sales)
Instinctif Partners (Media) Tel: +44 (0) 20 7457 2020
Melanie Toyne-Sewell / Jack Kincade SkinBioT (mailto:SkinBio@instinctif.com) herapeutics @instinctif.com
(mailto:SkinBio@instinctif.com)
Notes to Editors
About SkinBioTherapeutics plc
SkinBioTherapeutics is a life science company focused on skin health. The
Company's proprietary platform technology, SkinBiotix®, is based upon
discoveries made by the translational dermatology team at the University of
Manchester.
The Company is targeting a number of skin healthcare sectors, the most
advanced of which are cosmetic skincare and food supplements to modulate the
immune system by harnessing the gut-skin axis. In each area
SkinBioTherapeutics plans to exemplify its technology through human studies.
The Company's first product, AxisBiotix-Ps™, a food supplement to address
the symptoms of mild to moderate psoriasis.
The Company listed on AIM in April 2017 and is based in Newcastle, UK. For
more information, visit: www.skinbiotherapeutics.com
(http://www.skinbiotherapeutics.com) and www.axisbiotix.com
(http://www.axisbiotix.com) .
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 Group'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.
Chairman and Chief Executive's Statement
Overview
HY2024 has been an immensely busy period for the Company. The focus has been
to grow and drive the organic strategy, comprising the Croda/Sederma
SkinBiotix partnership, increasing and broadening the sales of AxisBiotix-Ps
and driving the research and development programmes, especially the leading
acne programme.
Management has also been engaged in seeking opportunities outside the Group,
looking for inorganic growth from acquisitions that would generate financial
benefits and infrastructure that other parts of the Group could benefit from.
The six months of the period and the first few months of 2024 have already had
an impact and the management believes this strategy is truly transforming this
business to be sustainable for the longer term.
Financial review
Reported sales for the half year were up 38% to £106.6k (HY2023: £77.0k) as
UK sales of AxisBiotix-Ps continued to grow steadily, and sales from new
European territories and the Amazon UK e-commerce platform came online.
Cost of sales rose by 52% to £38.4k (HY2023: £25.2k) reflecting the rise in
sales volumes.
Gross profit increased by 32% to £68.2k (HY2023: £51.7k). Gross profit
margins reduced to 64% (HY2023: 67%) due to rising costs of raw materials for
AxisBiotix-Ps.
Total operational costs were £1,454.4k (HY2023: £1,402.8k) comprising,
selling and distribution costs of £50.9k (HY2023: £40.1k), research and
development costs of £248.0k (HY2023: £444.6k) and operating expenses of
£1,155.6k (HY2023: £918.1k). Overall, there was a marginal rise in costs.
Expenses rose in line with the increase in sales of products and the ongoing
costs of the oral and inflammation research programmes. This was balanced by a
fall in R&D costs reflecting the completion of part of the oral programme
before the next stage began.
The operating loss remained steady, up 3% at £1,386.2k (HY2023: loss
£1,351.1k). The loss after tax for the period was £1,334.8k (HY2023:
£1,285.0k).
The cash and cash equivalents balance as at 31 December 2023 was £2,840.5k
(at 30 June 2023: £1,311.8k). The balance was boosted by the Placing and
Retail Offer of £3.3m (gross) in November 2023.
Current trading and outlook
Revenues of AxisBiotix-Ps™ have continued to grow post-period end in line
with management's expectations. Further expansion into Europe through Amazon
will provide wider coverage of our product into areas where psoriasis rates
are similar to the UK.
Monthly retention rates remain consistently high, highlighting the benefits of
AxisBiotix-Ps experienced by psoriasis sufferers. The selling price of the
product remains the key reason for customers dropping away, and management is
aiming to address this through securing a lower cost of goods in the near
future to allow for potential price reductions.
Dermatonics sales are performing in line with management expectations, and the
team is encouraged by potential growth areas in the business e.g. product
launch by the Umesh Modi Group in the AMEA, which have the potential to
enhance earnings in the current financial year and beyond. On a full year
basis to 30 June 2024 (of which the Group will recognise five months),
Dermatonics revenues are expected to grow to £2.0m (30 June 2023: £1.9m).
Overall, the Group remains in line with management expectations for the full
year to June 2024.
Acquisition strategy and first successful acquisition
At the end of the half year period, the Group was close to finalising
discussions to make its first acquisition, as part of the ongoing inorganic
acquisition strategy to diversify the product base and provide distribution
channels through which its own products could be sold. In January 2024, the
acquisition of Dermatonics was completed.
Dermatonics is a specialist in innovative topical and dermatological products
in the skincare/woundcare space. The financial details of the deal were for an
initial £1.68m upfront payment plus an earn-out over three years of up to
£1.25m based on performance criteria. The deal is accretive, and the
transaction was undertaken on a cash-free and debt-free basis.
The acquisition was financed by a £1.6m drawdown of a £5.0m convertible bond
facility agreed with Macquarie Bank Limited and CLG Capital LLC. To date, a
total of £210,000 of the convertible bonds have been converted into 2,433,008
Ordinary shares at an average conversion price of 9p per Ordinary Share.
The Company is continuing to pursue its inorganic acquisition strategy and is
targeting another private company as part of this, as well as developing a
pipeline of other opportunities where active discussions are taking place. At
the time of the Dermatonics acquisition, the Convertible Bond Facility was the
best option for raising finance; however, now that we have secured an
accretive target and thus generate significantly greater revenue the Board now
has the possibility of securing alternative, more traditional financing
instruments and has come to an amicable agreement with CLG Capital (and by
proxy, Macquarie Bank) not to utilise the Facility any further.
Operational review
SkinBiotix(™) Pillar (skincare/cosmetics)
SkinBioTherapeutics has a commercial and manufacturing agreement with Croda's
Consumer Care division, Sederma, which is the specialist in bioactive
ingredients for the cosmetics industry.
The contract with Sederma was extended in October 2023 to enable Sederma to
complete and assess additional studies on SkinBiotix™ to investigate
previously unseen beneficial properties, which have the potential to
significantly enhance commercial opportunities. Any costs to
SkinBioTherapeutics of supplying SkinBiotix™ for the studies continue to be
covered by Sederma.
Any material additional benefits identified from the studies could strengthen
Sederma's commercial story for SkinBiotix™ further as an active ingredient
and it therefore may command a higher price point with future customers
amongst Croda's global portfolio of personal care customers.
Post period end, Stuart Ashman and Manprit Randhawa visited the Sederma Paris
site and were shown around by the full team. The feedback from the Sederma
team was very positive, especially around the time taken for the testing and
development procedure of the SkinBiotix technology. The process comprises 38
steps and the time it takes is usually c.7 years; with SkinBiotix, the team
have reached the penultimate step before commercialisation in less than 5
years.
A short video by Cecile Jonchier, R&D Biotech Manager and project lead for
SkinBiotix at Sederma, will be presented during the Investor Meets Company
presentation at 1200hrs on Friday 22 March 2024
Cecile Jonchier says in the video: "After four years of research to develop
the project related to a high potential natural ingredient for the cosmetic
market, we have now reached the last stage of this project, meaning the
investigation of clinical trials. There are two trials running concurrently
and the final cohorts will be completed at the end of May / early June. This
key step will validate efficacy and marketing claims. We are excited to reach
the end of this long journey, which will add a high-level efficacy product for
the cosmetic market . We are also very proud to have progressed so quickly by
saving two years comparatively with other similar projects."
AxisBiotix™ Pillar (gut/skin axis)
The focus for the AxisBiotix™ pillar during the period has been a mix of
progressing the sales of the Psoriasis food supplement and commencing the acne
consumer participant study.
- AxisBiotix™ (Psoriasis)
Sales of AxisBiotix™ have continued to grow steadily in the UK with 523
subscribers (HY2023: 134 subscribers). Retention rates, measured as the number
of subscribers who remain a subscriber at the end of each monthly period,
compared to the same cohort that were in existence at the start of a month
period, rose from 83% to 89% in the period. The high retention rate is also
evidenced by the continuing positive testimonials received on a regular basis,
which is very gratifying.
The start of the period was marked by further expansion of the sales network,
both geographically into Europe and via new channels.
The first European launch was in Spain in February 2023, but since June 2023,
the Company also added France and Italy, once regulatory approval was
received. These territories have been chosen deliberately because the market
size for psoriasis is similar to the UK (1-3% of the population).
The Company also launched the product on Amazon's UK platform and during
HY2024, it began working with World Products, a leading full-service Amazon
Accelerator for Healthcare, beauty and OTC pharmaceutical brands. This
healthcare agency is helping to launch AxisBiotix™ via Amazon in France,
followed by Spain and Italy.
The aim for the next half of the financial year is to drive an increase in
sales both in the UK and Europe, and also to expand the Amazon relationship
beyond the UK. Most recently, the Company has appointed World Products to
expand AxisBiotix™ sales via Amazon across Europe and the USA.
- AxisBiotix™ (Acne)
During H1, SkinBioTherapeutics has been working on a new bacterial blend
specifically for acne with its formulation partner, Winclove SA. The Company
also prepared for the start of its consumer volunteer study which involves 220
UK-based participants with acne-prone skin. Online recruitment of participants
started via a pre-qualification questionnaire form before the year end.
The eight week study commenced at the beginning of 2024. Participants received
the blends in powder form and have recorded their experience of using the
product in a weekly questionnaire. The Company has followed the same structure
of participant study as it did with AxisBiotix-Ps, because it provides a
quicker, more cost effective path to commercialisation and supports ongoing
discussions with potential partners.
Positive interim (5 week) study data was released in February 2024 in relation
to the first two cohorts totalling 83 participants. The topline results were:
Criteria and questions Week 1 Week 5
Severity of acne: How do you rate your spots on a scale of 1-10, with 10 being 71% 37%
the most severe
(score 4 or more)
(score 4 or more)
Pain of acne spots: Are your spots painful? On a scale of 1 - 10, with 10 64% 43%
being the most concern
(score 4 or more)
(score 4 or more)
Concern over appearance: How concerned are you about the effect your spots 94% 56%
have on your appearance? On a scale of 1 - 10, with 10 being the most concern
(score 4 or more)
(score 4 or more)
Level of self-confidence: Do you worry about going out in public because of 84% 47%
your spots? On a scale of 1 - 10, with 10 being the most concern
(score 4 or more)
(score 4 or more)
As was stated in the study's interim results announcement, whilst being
cautiously optimistic, there can be no certainty that these results will
either improve or be maintained.
The completion of the full study and analysis of the total data set is
required to understand the outcomes. Of the 3 cohorts participating, cohorts 1
and 2 will complete by end March 2024, with cohort 3 finalising end April and
the final results reported as soon as possible thereafter.
Dermatonics
In late 2023, the Board and management set out a strategy to seek accretive
inorganic opportunities that could provide immediate synergies and accelerated
routes to market. At the financial level, the aim was to bring in inorganic
revenue growth and extend cash runway.
Dermatonics was the first acquisition to be completed, just after the period
end. The company is based in Cambridgeshire and is a specialist in innovative
topical and dermatological products in the skincare/woundcare space, using
natural ingredients wherever possible.
The initial consideration was £1.68 million plus £1.25 million earn-out over
three years in a cash-free and debt-free acquisition.
For the 12 months ended 31 January 2024, Dermatonics reported revenues of
£1.86 million (2023: £1.82m) assisted by the increased sale of products into
the NHS and podiatry clinics, at higher price points negotiated in February
2023, as well as growth in key distributor relationships outside of the UK.
EBITDA for the 12 months to 31 January 2024, increased by 77% to £422k (31
January 2023: adjusted EBITDA £230k). The adjustments were for one-off items:
£150k stock write off and £123k bad debt in FY2023. The cash balance as at
31 January 2024 was £149k (2023: £213k).
In February, Dermatonics announced that its manufacturing and distribution
partner, the Umesh Modi Group, had significantly brought forward the launch of
its Once Heel Balm to
1 March 2024. The product is being sold by Umesh Modi's 1,200 sales people
across six countries in Asia, the Middle East and Africa. The total
addressable market in these regions for dermatology and diabetes management is
in excess of £5bn. This type of opportunity underlines the benefits of
bringing in inorganic acquisitions like Dermatonics to the Group.
The team is currently working with the sales and marketing teams within Umesh
Modi group to ascertain the expectations of sales over the coming months and
years, and guidance will be provided in due course.
MediBiotix™ Pillar (MedTech applications e.g. woundcare)
Management is looking at using Skinbiotix™ technology in medical device
applications, such as woundcare since early data showed that it encourages
wound healing.
The latest development for this pillar has been in the post period end, with
the initiation of a new research and development project with the University
of Manchester, named the Epiderm project (Epiderm). The project is in
alignment with the Company's MediBiotix™ pillar, which targets the use of
the SkinBiotix® technology for medical applications and commercialisation.
The project will be run by Professor Andrew McBain and Professor Sheena
Cruickshank. Professor Andrew McBain co-created the SkinBiotix® technology
and is an expert in the Microbiome. Professor Sheena is a Professor in
Biomedical Sciences and Public Engagement at the University of Manchester and
is a highly regarded figure in the field immunology.
Other Research Programmes
The oral programme and an inflammation research programme have continued to
progress with the University of Manchester.
The first extended phase of developing a new lysate for the oral programme
ended in January 2024 and the Company will work with the University to publish
relevant findings later in 2024.
The inflammation study is also progressing well. It is looking at how the
microbiome can influence and balance the body's response to inflammation
specifically related to harmful UVR (sunlight) light. The aim is to advance
these findings to be tested on human skin. The programme will run until June
2025.
Management update
- Remuneration review
The Board has noted shareholders' views around remuneration and personal
investment in the Company.
The remuneration committee confirm that the CEO and CFO have volunteered to
take a backdated 20% reduction in their respective remuneration with effect
from 1 January 2024. With respect to personal investment from both the
management team and the Board, acquisition of shares has taken place whenever
possible, such as at fund raises. They will continue to look at opportunities
to buy more shares going forward, close periods permitting.
- Prof Cath O'Neill to return to full time academia
In order to return to full time academia as Professor of Translational
Dermatology at the University of Manchester. Chief Scientific Officer, Prof.
Cath O'Neill is reducing her role as CSO to become a Scientific Adviser to the
Board.
Since the Company was founded, Cath has combined her academic and corporate
roles. The Directors have been aware of her eventual desire to return to full
time academia for some time. Cath will retain a close connection with the
Company, not only as one of its original founders, but in the capacity as a
scientific adviser. She will continue to provide support and guidance on areas
such as the intellectual property behind her inventions (AxisBiotix,
SkinBiotix) and strategic developments in the microbiome arena. She also
retains a significant personal shareholding of 2.47%.
The ongoing relationship with the University of Manchester remains strong. All
the current academic programmes are managed by professors at the University of
Manchester. Professor O'Neill oversees the inflammation programme, Professor
McBain leads the oral programme and both Professor McBain and Professor Sheena
Cruikshank lead the Epiderm programme.
Conclusion
Major focus areas for the business in HY2024 has been the pushing forward of
the Sederma relationship, growing AxisBiotix-Ps sales and extending the sales
channels, progressing the acne consumer participant study, and securing the
first acquisition. Management has delivered across all of these.
The recent Sederma visit to Paris has brought a new energy into the team.
Seeing the excitement at Sederma and understanding in more detail the final
steps for SkinBiotix to be ready for commercialisation is a major milestone.
The extension of the contract for another 12 months was also further
validation of the strength of the partnership.
Sales for AxisBiotix-Ps continue to grow slowly but steadily in the UK and the
Company is seeing new territories opening up with regulatory approvals and
sales launches in France, Spain, and Italy. Having access via the Amazon UK
platform also enables customers to buy the product more easily. The focus for
the next half year is to keep pushing on growing sales and expanding the
Amazon relationship into other countries.
The acne consumer participant study is looking really exciting if the interim
data are any indication to go by. The final results will come through once
cohort 3 is completed in April and the results have been analysed.
Finally, the Dermatonics acquisition is already proving its worth. Following
the updated January figures, this new part of the business is generating
sales, profits, and cash from a broad pipeline of products in the
skincare/woundcare sectors which will support the rest of the Group's
activities. In addition, the sales and distribution agreement with Umesh Modi
Group, may provide opportunities for other Dermatonics' products as well as
SkinBioTherapeutics' own in-house products.
In this period, the Management team has been keen to demonstrate to
shareholders that the Company has been delivering on both organic and now new
inorganic growth to build sustainable value. Acquisitions (and financing) can
sometimes be a distraction for management and shareholders, but the team
believes that the benefits will start to be seen in the H2 performance and
numbers, as well as for the longer term.
Martin Hunt (Non-executive Chairman)
Stuart J. Ashman (Chief Executive Officer)
22 March 2024
Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December 2023
Notes 6 months to 6 months to 12 months to
31 Dec 2023
31 Dec 2022
30 Jun 2023
Unaudited Unaudited Audited
£ £ £
Continuing operations
Revenue 3 106,576 76,985 132,057
Cost of sales (38,353) (25,248) (46,867)
Gross profit 68,223 51,737 85,190
Selling and distribution (50,862) (40,136) (81,294)
Research and development (247,969) (444,588) (930,636)
Operating expenses (1,155,610) (918,103) (2,072,612)
Loss from operations (1,386,218) (1,351,090) (2,999,352)
Finance costs (3,836) (4,739) (8,886)
Loss before taxation (1,390,054) (1,355,829) (3,008,238)
Taxation 4 55,243 70,826 173,089
Loss for the period (1,334,811) (1,285,003) (2,835,149)
Total comprehensive loss for the period (1,334,811) (1,285,003) (2,835,149)
Basic and diluted loss per share (pence) 5 (0.75) (0.82) (1.72)
Consolidated Statement of Financial Position
As at 31 December 2023
As at As at As at
31 Dec 2023
31 Dec 2022
30 Jun 2023
Note
Unaudited Unaudited Audited
£ £ £
ASSETS
Non-current assets
Property, plant and equipment 70,545 - 78,658
Right-of-use assets 89,864 110,702 94,502
Intangible assets 761,173 652,548 700,331
Total non-current assets 921,582 763,250 873,491
Current assets
Inventories 46,947 88,257 33,497
Trade and other receivables 164,557 126,274 192,885
Corporation tax receivable 237,790 244,555 182,545
Cash and cash equivalents 2,840,522 765,976 1,311,834
Total current assets 3,289,815 1,225,062 1,720,761
Total assets 4,211,397 1,988,312 2,594,252
EQUITY AND LIABILITIES
Equity
Capital and reserves
Called up share capital 6 1,903,629 1,567,802 1,731,390
Share premium 13,766,596 8,758,037 10,947,874
Other reserves 438,589 459,471 438,589
Accumulated deficit (12,457,754) (9,572,797) (11,122,943)
Total equity 3,651,060 1,212,513 1,994,910
Liabilities
Non-current liabilities
Lease liabilities 59,689 82,823 69,601
Total non-current liabilities 59,689 82,823 69,601
Current liabilities
Trade and other payables 463,287 666,290 498,696
Lease liabilities 37,361 26,686 31,045
Total current liabilities 500,648 692,976 529,741
Total liabilities 560,337 775,799 599,342
Total equity and liabilities 4,211,397 1,988,312 2,594,252
Consolidated Statement of Cash Flows
For the 6 months ended 31 December 2023
6 months to 6 months to 12 months to
31 Dec 2023
31 Dec 2022
30 Jun 2023
Unaudited Unaudited Audited
£ £ £
Cash flows from operating activities
Loss before tax for the period (1,390,054) (1,355,829) (3,008,238)
Depreciation of property, plant and equipment 23,072 - 11,136
Right-of-use assets depreciation and interest 21,361 20,938 41,287
Amortisation of IP 683 150 656
Share based payments charge - 22,155 1,273
(1,344,938) (1,312,586) (2,953,886)
Changes in working capital
Decrease/(Increase) in inventories (13,450) 34,314 89,074
Decrease/(Increase) in trade and other receivables 28,314 7,138 (54,735)
Increase/(decrease) in trade and other payables (35,395) 184,016 16,954
Cash used in operations (20,531) 225,468 51,293
Taxation received - 93,189 257,458
Net cash used in operating activities (1,365,469) (993,929) (2,645,135)
Cash flows from investing activities
Purchase of property, plant and equipment (14,959) - (89,794)
Purchase of IP (61,525) (27,194) (75,483)
Net cash used in investing activities (76,484) (27,194) (165,277)
Cash flows from financing activities
Net proceeds from issue of shares 2,990,962 - 2,353,425
Lease payments made (20,321) (17,824) (36,102)
Net cash gained/(used) by financing activities 2,970,641 (17,824) (2,317,323)
Net increase/(decrease) in cash and cash equivalents 1,528,688 (1,038,947) (493,089)
Cash and cash equivalents at the beginning of the period 1,311,834 1,804,923 1,804,923
Cash and cash equivalents at the end of the period 2,840,522 765,976 1,311,834
Consolidated Statement of Changes in Equity
For the 6 months ended 31 December 2023
Share capital Share premium Other reserves Retained earnings Total
£ £ £ £ £
As at 1 Jul 2022 1,567,802 8,758,037 437,316 (8,287,794) 2,475,361
Loss for the period - - - (1,285,003) (1,285,003)
Share-based payments - - 22,155 - 22,155
As at 31 Dec 2022 1,567,802 8,758,037 459,471 (9,572,797) 1,212,513
As at 1 Jan 2023 1,567,802 8,758,037 459,471 (9,572,797) 1,212,513
Loss for the period - - - (1,550,146) (1,550,146)
Issue of shares 163,588 2,453,793 - - 2,617,381
Cost of share issue - (263,956) - - (263,956)
Share-based payments - - (20,882) - (20,882)
As at 30 Jun 2023 1,731,390 10,947,874 438,589 (11,122,943) 1,994,910
As at 1 Jul 2023 1,731,390 10,947,874 438,589 (11,122,943) 1,994,910
Issue of shares 172,239 3,100,336 - - 3,272,575
Cost of share issue - (281,614) - - (281,614)
Loss for the period - - - (1,334,811) (1,334,811)
Share-based payments - - - - -
As at 31 Dec 2023 1,903,629 13,766,596 438,589 (12,457,754) 3,651,060
Share capital is the amount subscribed for shares at nominal value.
Share premium is the amount subscribed for share capital in excess of nominal
value.
Other reserves arise from share options granted and exercised.
Retained earnings represents accumulated profit or losses to date.
Notes to the Consolidated Financial Statements
For the 6 months ended 31 December 2023
1. General information
SkinBioTherapeutics plc is a public limited company incorporated in England
under the Companies Act and quoted on the AIM market of the London Stock
Exchange (AIM: SBTX). The address of its registered office is The Core Bath
Lane, Newcastle Helix, Newcastle Upon Tyne, England, NE4 5TF.
The principal activity of the Group is the identification and development of
technology that harnesses the human microbiome to improve health.
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 statutory financial statements for the year ended 30 June 2023,
prepared under UK-adopted International Accounting Standards ("IFRS"), have
been filed with the Registrar of Companies.
Copies of the annual statutory accounts and the Interim Report can be found on
the Company's website at www.skinbiotherapeutics.com.
2. Significant accounting policies and basis of preparation
2.1 Statement of compliance
This Interim Report has been prepared using the historical cost convention, on
a going concern basis and in accordance with UK-adopted International
Accounting Standards ("IFRS"), IFRS Interpretations Committee (IFRIC) and the
Companies Act 2006 applicable to companies reporting under IFRS, using
accounting policies which are consistent with those set out in the financial
statements for the year ended 30 June 2023.
2.2 Application of new and revised International Financial
Reporting Standards (IFRSs)
There are no IFRSs or IFRIC interpretations that are effective for the first
time in this financial period that would be expected to have a material impact
on the Group.
3. Segmental reporting
In the opinion of the Directors, the Group has one class of business, in three
geographical areas, namely that of the identification and development of
technology that harnesses the human microbiome to improve health.
Revenue analysed by geographical market 6 months to 6 months to 12 months to
31 Dec 2023
31 Dec 2022
30 Jun 2023
£ £ £
UK 99,719 70,328 118,921
Europe 4,180 560 3,861
US 2,677 6,097 9,275
106,576 76,985 132,057
4. Taxation
Income taxes recognised in profit or loss 6 months to 6 months to 12 months to
31 Dec 2023
31 Dec 2022
30 Jun 2023
£ £ £
Current tax
R&D tax credit 55,243 70,826 182,547
R&D tax credit - prior year - - (9,458)
Tax credit for the period 55,243 70,826 173,089
5. Loss per share
6 months to 6 months to 12 months to
31 Dec 2023
31 Dec 2022
30 Jun 2023
£ £ £
Basic and diluted loss per share
Loss after tax (£) (1,334,811) (1,285,003) (2,835,149)
Weighted average number of shares 176,883,221 156,780,236 164,713,045
Basic and diluted loss per share (pence) (0.75) (0.82) (1.72)
As the Group is reporting a loss from continuing operations for the period
then, in accordance with IAS 33, the share options are not considered dilutive
because the exercise of the share options would have an anti-dilutive
effect. The basic and diluted earnings per share as presented on the face of
the income statement are therefore identical.
6. Share capital
Issued share capital comprises 31 Dec 2023 31 Dec 2022 30 Jun 2023
£ £ £
190,362,941 ordinary shares of £0.01 each 1,903,629 1,567,802 1,731,389
7. Events after the reporting date
The Group has evaluated all events and transactions that occurred after 31
December 2023 up to the date of signing of the financial statements.
On 26 January 2024 the Group acquired 100% of the share capital of Dermatonics
Limited, a leader in the woundcare space, based in Cambridgeshire, UK, for a
total consideration of £2.93m, with £1.25m of this being deferred
consideration.
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