REG - Trellus Health PLC - Half-year Report
30/09/2022 07:00
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RNS Number : 2592B Trellus Health PLC 30 September 2022
Trellus Health plc
("Trellus Health", the "Company" or the "Group")
Half-year Report
Trellus Health Plc (AIM: TRLS), the AIM listed digital health business,
announces its unaudited half-year report for the six months ended 30 June
2022.
About Trellus Health
Trellus Health is pioneering a scientifically validated, resilience-driven
personalized connected health solution which addresses the intersection of
chronic disease with mental health, estimated to cost the US economy $3.7
trillion annually(1). Trellus' approach transforms chronic disease management
and changes the lives of patients living with debilitating, incurable
conditions, initially focused on Inflammatory Bowel Disease ("IBD"), including
Crohn's Disease and ulcerative colitis, and shortly Irritable Bowel Syndrome
("IBS") but with potential utility and demand across many chronic conditions.
Trellus is pursuing this approach via a B2B2C strategy which is focussed on
regional and national health plans, employers, health systems, GI
(gastrointestinal) provider networks and pharmaceutical companies as well as
through a D2C model partnering with patient advocacy groups to drive awareness
and demand.
Through its TrellusElevate™ connected health platform and companion App,
Trellus Health is the first and only digital health company to offer a
scientifically validated, personalized resilience-based self-management
training program for people living with chronic conditions which has been
proven to reduce unplanned hospitalizations by 94%(2).
Financial Highlights
· AIM IPO proceeds used for technology platform development and
advancement of commercial strategy
- c. $5.9m capital investment in the TrellusElevate™ connected
health platform and companion software
· Net cash of $23.97m at 30 June 2022 (31 December 2021: $31.98m)
- cash runway extends into 2025
· Adjusted EBITDA* loss of $4.61m, in line with expectations (FY 2021:
$5.73m loss)
* Earnings before interest, tax, depreciation and amortisation adjusted for
share-based payments
Operational Highlights (H1 and Post-period end)
· New DTC coaching model and adapted platform rolled-out in July, with
early adopter program with over 50 patients on-board already
· Access to Trellus IBD Self-Management Program extended to patients
across the whole of North America (USA & Canada)
· Agreements signed to facilitate access to additional DTC growth
channels to expand consumer reach
- Licensing agreement with largest patient advocacy group in the US
and partnership agreement with large US provider partner
· Significant B2B2C progress with Health plans and employers to deliver
The Trellus Resilience Training and Self-Management Solution, including:
- late-stage discussions with two US health plans and final
contracting phases of a New York ("NY") Medicaid plan
- final contracting phase with a large NY State employer, and large NY
state provider
· Opportunity to be part of a patient support hub to the pharmaceutical
industry further demonstrating B2B2C progress
- Late-stage discussions with two large pharmaceutical companies
- Ongoing discussions with two patient services partners
· Expansion into IBS expected to launch earlier than expected at start
of Q1 2023, which impacts a much larger healthcare population in the US (c. 30
m people)
· Tighter control of costs and revised delivery model provides cash
runway extension into 2025 assuming current level of revenue only
· Appointment of Trellus co-founder Dr. Marla Dubinsky as Chief
Executive Officer and strengthened senior management team including
appointment of COO and CFO
Commenting on the outlook for the business, Julian Baines, Non-executive
Chairman of Trellus, said:
"We are significantly encouraged by the progress made over the last
six-months, and the recently accelerated commercial progress made across both
B2B2C and D2C models since the summer. In particular, Trellus Health now has
an advanced pipeline of potential B2B2C partners keen to make the The Trellus
Resilience Training and Self-Management Solution available to members of their
health plans or to their employees. The increasing interest from
pharmaceutical companies and the progression to late-stage discussions is also
very encouraging.
"Following the adoption of a new delivery model, we have accelerated the
launch of our product to also cover IBS, we are excited to be in a position to
offer a comprehensive GI solution ahead of original expectations, with launch
for IBS expected start of Q1 2023. We remain well funded and have sensibly
reduced our cash-burn through our new delivery model and cost savings in the
business, extending our cash runway into 2025 on conservative assumptions
only. We have reduced customer acquisition costs and increased automation to
support profitable scale up.
"While progress has been slower than we previously anticipated, recent
developments are supportive of an improvement in the pace of
commercialisation. Accordingly, we look forward to updating our shareholders
as we make further commercial progress, in particular with contracts relating
to both D2C and B2B2C models expected to be signed soon and expected to
contribute positively in 2023."
A copy of the investor presentation is available here:
https://trellushealth.com/investors/annual-interim-reports/
(https://trellushealth.com/investors/annual-interim-reports/)
Trellus Health will be hosting a live online presentation open to all
investors on 3 October at 15.30 BST, via the Investor Meet Company
platform. Investors can sign up to Investor Meet Company for free and add to
meet Trellus Health via:
https://www.investormeetcompany.com/trellus-health-plc/register-investor
(https://www.investormeetcompany.com/trellus-health-plc/register-investor)
Trellus Health plc https://trellushealth.com/ (https://trellushealth.com/)
Julian Baines, Non-executive Chairman Via Walbrook PR
Dr. Marla Dubinsky, Chief Executive Officer
Steve Young, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Broker) Tel: +44 (0)20 7496 3000
Aubrey Powell / Jen Boorer
Walbrook PR Tel: +44 (0)20 7933 8780 or trellus@walbrookpr.com
(mailto:trellus@walbrookpr.com)
Paul McManus / Sam Allen / Phillip Marriage Mob: +44 (0)7980 541 893 / 7748 651 727 / 7867 984 082
About Trellus Health plc (www.trellushealth.com (http://www.trellushealth.com)
)
Trellus Health (LSE: TRLS) is the first digital health company focused on the
intersection of chronic physical conditions and mental health. Trellus
Health integrates its proprietary resilience-based methodology with the
technology, tools and team to deliver a whole-person technology-enhanced
experience that results in relieving disease burden, building self-management
skills and promoting individual health behaviors that enable thriving in the
face of a chronic condition. Through its TrellusElevate™ connected health
platform and companion App, the company addresses both clinical and behavioral
health together, in context, to improve outcomes and reduce healthcare costs
for patients, employers, and the healthcare system.
The Company is initially focused on Inflammatory bowel disease ("IBD"), which
includes the chronic incurable conditions of Crohn's Disease and ulcerative
colitis, and shortly Irritable Bowel Syndrome ("IBS"), but considers its
approach to have potential utility and demand across many chronic conditions.
The TrellusElevate™ platform is the Company's proprietary connected health
platform that incorporates the GRITT™ methodology and learnings on
resilience from clinical research and practice conducted at the Mount Sinai
IBD Center for more than five years. This proprietary, resilience-driven
methodology has been scientifically validated to demonstrate meaningful
improvements in patient outcomes, 71% reduction in Emergency Department
(A&E) visits, and 94% reduction in unplanned hospitalisations, which the
directors of the Company believe indicates the potential for significant cost
savings for healthcare payers. IBD patients treated using the methodology also
experienced a 49% reduction in required opioid use and a 73% reduction in
corticosteroid use 12 months following program completion(2).
The Company was founded by Mount Sinai faculty members Dr. Marla C. Dubinsky,
MD and Dr. Laurie Keefer, PhD, both with decades of combined experience in IBD
and psychogastroenterology, respectively. Trellus Health's patent-pending
GRITT™ resilience assessment and personalized treatment methodology was
developed and validated at the Mount Sinai Health System to build resilience
and wellness for improved outcomes at lower cost.
Shares in Trellus Health were admitted to trading on AIM in May 2021, under
the ticker TRLS. For more information on Trellus Health, visit:
www.trellushealth.com (http://www.trellushealth.com)
(1)(source: https://www.cdc.gov/chronicdisease/about/costs/index.htm
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.cdc.gov_chronicdisease_about_costs_index.htm&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=fSst1AtlXyuqcs3cHJXcCRilbI1Qm1WfjNYkVgQfiLE&m=IjQVBqsF0mJCc4cCch3kNewShI3X349VlYSUrh3C5-c&s=lilxcTv-hIGGEbeSix8wsDKl8TOyuP3Vw__GebvZFro&e=)
)
(2)(source:
https://www.sciencedirect.com/science/article/pii/S1542356521012258
(https://www.sciencedirect.com/science/article/pii/S1542356521012258) ).
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.
CHAIRMAN'S STATEMENT
I am very pleased to announce another period of solid progress for the
business, but also one of constructive change which, I believe, positions us
well to execute on our expanded commercialisation strategy. This now
incorporates our original Business-to-Business-to-Consumer (B2B2C) model
(previously described as our B2B model) as well as our newly launched
Direct-to-Consumer (D2C) capability, both designed to drive consumer adoption
of The Trellus Resilience Training and Self-Management Solution.
Having shifted to a more automated delivery method, which supports both
aspects of our combined business model, there is now much greater scope to
scale the business profitably over the longer term, and allow us to reach more
patients quickly, in all US states and in Canada. Most importantly, this means
that people living with chronic conditions will have access to a whole-person
support system that addresses both their physical and mental health needs,
helping them to build resilience, take control of their own health and improve
their outcome, all with a much lower cost burden for health systems.
Board and Senior Management Team structure
Both in the period and post-period end we announced a number of changes to the
Board and senior management team.
Given the evolution of our new commercialisation strategy, we changed our
Board and Senior Management structure, which is now led by Trellus Health
Co-Founder Dr. Marla Dubinsky. Marla is a Professor of Pediatrics and Medicine
at the Icahn School of Medicine at Mount Sinai, New York and her unrivalled
expertise and reputation in this market is well-known. We were delighted that
Marla's position as a world-leader in IBD was recently recognised by the award
of the 2022 Sherman Prize, a prestigious US national award that recognises
individuals with an extraordinary track record of achievement, who make
exceptional and pioneering contributions to transform IBD care.
At the same time as Marla's appointment as CEO in July 2022, we announced that
Aled Stevenson, previously US Executive VP of Sales and Development, would
become Chief Operating Officer. Earlier, in June, we announced the appointment
of Traci Entel, an experienced management consultant and global HR executive,
as Non-executive Director, and at the beginning of last month we announced the
appointment of Steve Young, an experienced Chief Financial Officer of
AIM-listed companies, as our new CFO.
We believe we have a structure in place which strengthens our ability to
deliver against our commercial goals. In particular we are very pleased to
have the full extent of Marla's expertise, passion and knowledge of the market
deployed in her new role as Chief Executive Officer. Already Marla and the
team have delivered considerable commercial progress for the business as set
out below.
Strong progress with our expanded commercialisation strategy
1) D2C early adopters engaged and further consumer channels and
strategic partnerships expected
During the first-half of the financial year, we evolved to a more scalable
service delivery model utilizing an integrated resilience team. We also
initiated the implementation of a D2C business model partnering with patient
advocacy groups to drive awareness and demand, alongside our original B2B2C
strategy which focussed on regional and national health plans, employers,
health systems, GI provider networks and pharmaceutical companies.
We commenced the roll out of our D2C model in July 2022, with a targeted
approach focussed on an early adopter programme to kick-start early patient
engagement. We have ongoing pilot programs, sponsored by patient advocacy
groups Connecting to Cure and Athletes vs Crohn's and Colitis, and in
partnership with select IBD centers in the US. We have over 50 patients
on-board already who are already providing important user data. This is being
used to support B2B2C engagement by providing valuable real-world evidence of
the health and economic outcomes of the Trellus Method.
We have also recently signed two agreements that will provide access to
additional D2C growth channels to expand nationwide consumer reach. The first
is a licensing agreement with the Crohn's and Colitis Foundation, the largest
patient advocacy group for IBD in the US, which will add the Trellus app to
their website and open access for providers and patients nationwide. We have
also signed a collaboration agreement with a national GI Society Provider
platform, to offer exclusive access to the Trellus Resilience Program to over
16,000 GI professionals across the US for the benefit of the millions of
patients they collectively serve. These two channels alone provide the
broadest possible reach into the US gastroenterological community, and provide
the most direct channels to market via both patients and GI providers
nationwide. There is no doubt that the unrivalled reputation of our
co-founders in this field of care, has uniquely positioned Trellus to deliver
such key partnership agreements and we hope to see tangible benefits from
these collaborations in due course.
2) Significant progress with advancing B2B2C model
I am very pleased to report that, despite the longer lead times in the B2B2C
contracting process as previously reported in December 2021, we have made
significant progress in advancing a number of conversations with payers, such
as regional and national health plans, employers, health systems, GI provider
networks, and pharmaceutical companies. Whilst we have launched our D2C model,
we remain focused on our B2B2C offering which provides better quality patient
outcomes at lower costs to health plans and employers.
We are in productive conversations with two health plans, having entered
late-stage discussions with one and starting the due diligence process with
another; we are in the final contracting phase for a New York Medicaid plan
and we have two further contracts, one with a large NY State employer and the
other with a NY State Provider to support members of a large NY labor union,
which we expect to be signed soon.
We are in late-stage discussions with two large pharmaceutical companies in
the US, one for patient support services and another for clinical trials
screening, and we are in ongoing discussions with two patient services
partners who deliver programs to pharmaceutical companies as part of a
centralized patient support hub. We believe that our methodology will help
pharmaceutical companies to improve patient adherence behaviors, encourage
customer loyalty and engagement, and support clinical trial screening. Success
under our B2B2C model will see those organisations driving their own members
to the Trellus platform.
Expansion into Irritable Bowel Syndrome (IBS) for comprehensive GI solution
As a business we are targeting large, multi-billion addressable markets for
chronic conditions, where there is a significant unmet need to provide
whole-person, clinical, mental and behavioural, support to empower patients to
take control of their health. With c $3.4 trillion spent annually in the US on
chronic and mental health conditions there is an urgent need for new solutions
to help patients manage their conditions and reduce associated healthcare
costs.
Our initial focus was on IBD, a lifelong chronic disease plagued by
mismanagement, improper treatment, high costs and rates of anxiety, depression
and emergency healthcare utilization. However last year, we initiated research
into versioning Trellus Resilience Training into IBS, another chronic GI
condition that has significant similarities with IBD from a symptom burden and
emotional perspective. IBS however has a much higher population prevalence
than IBD, impacting c. 10% of the US population (c. 30m patients for IBS
compared to c. 3m for IBD). Whilst the annual healthcare spend on IBS is
higher at c. $61 bn (IBD c $25 bn), this is significantly lower than IBD on a
"per patient" basis.
Originally, we had expected to launch the Trellus Method for IBS in H1 2023,
however using existing resources we have accelerated the launch of our IBS
application which is now expected at the start of Q1 2023, when we will be
offering patients a comprehensive GI solution covering both IBD and IBS. We
also believe our solution can be used across many other chronic conditions to
deliver meaningfully improved healthcare outcomes as well as reducing
expensive, unplanned care, such as emergency department visits and
hospitalisations.
Geographic expansion
Since the launch of our new service delivery method and D2C model we have also
made our IBD Program available to patients in Canada as well as all 50 states
in the US.
Careful cash management extends cash runway into 2025
Since IPO we have been careful to manage cash within the business and maintain
a healthy net cash position at the end of the first half, to support our
commercial strategy as we accelerate revenue generation. Following the period
end we have undertaken a further review of our cash burn rate which has
allowed us to significantly reduce costs across staffing and consultancy fees,
development costs and other software and technology related expenses, without
any detriment to our growth strategy. As a result, we have extended our cash
runway out into 2025, providing us with confidence that we are well funded to
deliver commercial success and cash generation.
Financial review:
Income Statement and Balance sheet
The Company has been continuing in its development phase since 2021. The only
revenue generated is from implementation services and the Company has not yet
generated revenues from its operating activities. The main components of the
Administrative expenses totalling US $4.9m (H1 2021: US $1.6m, FY2021: US
$5.9m) were employee related costs of US $3.1m (H1 2021: US $1m, FY 2021: US
$3.6m), professional costs of US $0.7m (H1 2021: US $0.4m, FY2021: US $1.1m)
and other operating expenses of US $0.8m (H1 2021: US $0.2m, FY 2021: US $1m).
Total depreciation and amortisation was $0.2m (H1 2021: US $Nil, FY 2021: US
$0.03m) and Share-based payment charge was US $0.01m (Half year 2021 - US
$0.04m, Full year 2021 - US $0.14m).
The Company has incurred costs of US $1.85m (H1 2021: US $1.5m, FY2021: US
$3.6m) in developing the Trellus Health platform. At the period end, funds
held in Sterling incurred a foreign exchange loss of US $1.4m (Hi1 2021: US
$0m, FY2021: US $1.7m) reducing the cash balances.
The cash balance at the end of 30 June 2022 totalled US $24m (30 June 2021 -
US $40m and 31 December 2021 - US $32m).
Dividend
The Company continues with its policy of retaining the cash to fund the
development of the business rather than paying a dividend.
Outlook
We are significantly encouraged by the progress made over the last six-months,
and the recently accelerated commercial progress made across both B2B2C and
D2C models since the summer. In particular, Trellus Health now has an advanced
pipeline of potential B2B2C partners keen to make the The Trellus Resilience
Training and Self-Management Solution available to members of their health
plans or to their employees. The increasing interest from pharmaceutical
companies and the progression to late-stage discussions is also very
encouraging.
Following the adoption of a new delivery model, we have accelerated the launch
of our product to also cover IBS, we are excited to be in a position to offer
a comprehensive GI solution ahead of original expectations, with launch
expected start of Q1 2023. We remain well funded and have sensibly reduced our
cash-burn through our new delivery model and cost savings in the business,
extending our cash runway into 2025 on conservative assumptions only. We have
reduced customer acquisition costs and increased automation to support
profitable scale up.
While progress has been slower than we previously anticipated, recent
developments are supportive of an improvement in the pace of
commercialisation. Accordingly, we look forward to updating our shareholders
as we make further commercial progress, in particular with contracts relating
to both D2C and B2B2C models expected to be signed soon and expected to
contribute positively in 2023.
I would like to thank our shareholders for their continued support.
Julian Baines, MBE
Non-Executive Chairman
30 September 2022
CONSOLIDATED CONDENSED STATEMENT OF COMPRENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2022
6 months ended 30 June 2022 6 months ended 30 June 2021 Year ended 31 December 2021
Unaudited Unaudited Audited
Notes US$'000 US$'000 US$'000
Continuing operations
Revenue 10 - 25
Cost of sale - - -
Gross profit 10 - 25
Administrative expenses (4,850) (1,567) (5,927)
Operating loss (4,840) (1,567) (5,902)
Share based payments 9 39 139
Depreciation and amortisation 222 - 32
EBITDA before share-based payment (4,609) (1,528) (5,731)
Income tax charge 3 - -
Loss for the period (4,840) (1,567) (5,902)
Loss per ordinary share attributable to the owners of the parent during the $ $ $
period
Basic and diluted 4 (0.03) (0.01) (0.04)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2022
6 months ended 30 June 2022 6 months ended 31 30 June 2021 Year ended 31 December 2021
Unaudited Unaudited Audited
US$'000 US$'000 US$'000
Loss for the period (4,840) (1,567) (5,902)
Other comprehensive expense:
Currency translation differences (1,433) (3) (1,725)
Total comprehensive loss for the period (6,273) (1,570) (7,627)
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
As at 30 June 2022 As at 30 June 2021 As at 31 December 2021
Unaudited Unaudited Audited
Notes US$'000 US$'000 US$'000
Assets
Non-current assets
Property, plant and equipment 70 32 82
Intangible assets 5 5,920 2,214 4,280
Total non-current assets 5,990 2,246 4,362
Current Assets
Trade and other receivables 481 319 451
Cash and cash equivalents 23,968 39,691 31,982
Total current assets 24,449 40,010 32,433
Total assets 30,439 42,256 36,795
Equity attributable to owners of the parent
Share capital 137 137 137
Share premium 43,387 43,380 43,387
Other reserve 148 39 139
Foreign currency reserves (3,158) (3) (1,725)
Retained earnings (11,504) (2,329) (6,664)
Total equity 29,010 41,224 35,274
Current liabilities
Trade and other payables 1,429 1,032 1,521
Total liabilities 1,429 1,032 1,521
Total equity and liabilities 30,439 42,256 36,795
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 JUNE 2022
Share Capital Share Premium Foreign Currency Reserve Other reserves Retained earnings
Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2021 12 4,996 - - (762) 4,246
Comprehensive income
Loss for the period - - - (1,567) (1,567)
Other comprehensive income
Currency translation differences - - (3) - - (3)
Total comprehensive expense - - (3) - (1,567) (1,570)
Transactions with owners
Capital reconstruction 64 (64) - - - -
Share based payments - - - 39 - 39
Issue of ordinary shares 61 38,448 - - - 38,509
Total contributions by and distributions to owners 125 38,384 - 39 - 38,548
At 30 June 2021 137 43,380 (3) 39 (2,329) 41,224
Comprehensive income
Loss for the period - - - - (4,335) (4,335)
Other comprehensive expenses
Currency translation differences - - (1,722) - - (1,722)
Total comprehensive expense - - (1,722) - (4,335) (6,057)
Transactions with owners
Share based payments - - - 100 - 100
Issue of ordinary shares - 7 - - - 7
Total contributions by and distributions to owners - 7 - 100 - 107
At 31 December 2021 137 43,387 (1,725) 139 (6,664) 35,274
Comprehensive income
Loss for the period - - - - (4,840) (4,840)
Other comprehensive expenses
Currency translation differences - - (1,433) - - (1,433)
Total comprehensive expense - - (1,433) - (4,840) (6,273)
Transactions with owners
Share based payments - - - 9 - 9
Total contributions by and distributions to owners - - - 9 - 9
At 30 June 2022 137 43,387 (3,158) 148 (11,504) 29,010
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE 2022
6 months ended 30 June 2022 6 months ended 30 June 2021 Year ended to 31 December 2021
Unaudited Unaudited Audited
US$'000 US$'000 US$'000
Cash flow from operating activities
Loss before income tax (4,840) (1,567) (5,902)
Adjustments for
- Depreciation and amortisation 222 3 32
- Share-based payments 9 39 139
Changes in working capital
- Trade and other receivables (30) (308) (440)
- Trade and other payables (92) 910 1,401
Net cash used in operating activities (4,731) (923) (4,772)
Cash flow from investing activities
Purchase of property, plant and equipment (PPE) - (24) (81)
Internally generated intangible assets (1,850) (1,552) (3,640)
Net cash used in investing activities (1,850) (1,576) (3,721)
Cash flow from financing activities
Net proceeds from issue of ordinary shares - 38,509 38,516
Net cash generated from financing activities - 38,509 38,516
Net (decrease)/increase in cash and cash equivalents (6,581) 36,010 30,023
Cash and cash equivalents at beginning of period 31,982 3,684 3,684
Exchange loss on cash and cash equivalents (1,433) (3) (1,725)
Cash and cash equivalents at end of period 23,968 39,691 31,982
NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
1. General information and basis of presentation
Trellus Health plc is a public limited company incorporated in the United
Kingdom (Registration Number 12743489). The address of the registered office
is Avon House, 19 Stanwell Road, Penarth, CF64 2EZ.
The principal activity of Trellus Health PLC (the "Company") is the delivery
of resilience-driven care for complex chronic conditions.
The Group's principal activity is that of digital health.
Basis of preparation
The financial information in these interim results is that of the holding
company and all of its subsidiaries and are unaudited. It has been prepared in
accordance with the recognition and measurement requirements of International
Financial Reporting Standards as adopted for use in the United Kingdom, IFRS
IC interpretations, and the Companies Act 2006 applicable to companies
reporting under IFRS.
The presentation currency of the Group is United States Dollars ("USD" or
"US$") and this is the currency of the primary economic environment that the
main business operates in.
Certain statements in this announcement constitute forward-looking statements.
Any statement in this announcement that is not a statement of historical fact
including, without limitation, those regarding the Company's future
expectations, operations, financial performance, financial condition and
business is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. These risks and uncertainties include, amongst other factors,
changing economic, financial, business or other market conditions. These and
other factors could adversely affect the outcome and financial effects of the
plans and events described in this announcement and the Company undertakes no
obligation to update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this announcement
should be construed as a profit forecast.
The financial information presented herein does not constitute full statutory
accounts under Section 434 of the Companies Act 2006 and was not subject to a
formal review by the auditors. Comparative figures in the Interim Report for
the year ended 31 December 2021 have been taken from the Group's audited
statutory financial statements on which the Group's auditors, Crowe U.K. LLP,
expressed an unqualified opinion. The comparative figures to 30 June 2021 are
unaudited.
These interim accounts have not been prepared in accordance with IAS 34,
'Interim financial reporting'. They have been prepared under AIM Rules of UK
companies and have been authorised for issue by the Company's Board of
directors on 30 September 2022.
2. Summary of significant accounting policies
The accounting policies applied by the Group in this financial information are
the same as those applied by the Group in its financial statements for the
year ended 31 December 2021 and which will form the basis of the 2022
financial statements except for a number of new and amended standards which
have become effective since the beginning of the previous financial year.
These new and amended standards are not expected to materially affect the
Group.
The principal accounting policies adopted in the preparation of the historical
financial information of the Company, have been applied consistently to the
period presented.
Going concern
The Group is in the development phase of its business and has only generated
revenues related to implementation services totalling $10,000. At 30 June 2022
the Group has available cash resources are over $23.9m. The company has been
continuing developing its platform and methodology for delivery of
resilience-driven management for complex chronic conditions. The Directors
have prepared cash flow forecasts for the Group for a review period of over 12
months from the date of approval of this historical financial information.
These forecasts reflect an assessment of current and future market conditions
and their impact on the Group's future cash flow performance. The forecasts
have been sensitised for additional costs which may be incurred in the review
period. In the sensitised scenario, the forecasts indicate the Group would
still have sufficient cash to continue as a going concern.
Having considered the points above, the Directors remain confident in the
long-term future prospects for the Group, and their ability to continue as a
going concern for the foreseeable future. They therefore adopt the going
concern basis in preparing the historical financial information of the Group.
3. Income tax
The Group has no provision for corporation tax due to tax losses incurred
since incorporation. The Group has incurred indefinitely available tax losses
of approximately US$17.5m (December 2021 - US$10m) to carry forward against
future taxable income at the end of 30 June 2022. No deferred tax asset has
been recognised in respect of such losses and temporary differences due to the
unpredictability of future profit streams. Such losses may be carried forward
indefinitely.
4. Loss per share
Basic loss per share is calculated by dividing the loss attributable to equity
holders of the parent by the weighted average number of ordinary shares in
issue during the period.
Diluted loss per share is calculated by adjusting the weighted average number
of ordinary shares outstanding assuming conversion of all dilutive potential
ordinary shares. The Company has one category of dilutive potential ordinary
share, being share options. Currently the share options are anti- dilutive.
6 months ended 30 June 2022 6 months ended 30 June 2021 Year ended 31 December 2021
Unaudited Unaudited Audited
US$'000 US$'000 US$'000
Loss attributable to owners of the parent (4,840) (1,567) (5,902)
Number Number Number
Weighted average number of ordinary shares in issue 161,508,333 105,115,884 131,734,028
US$ US$ US$
Basic loss per share (0.03) (0.01) (0.04)
5. Intangible Fixed Assets
Software Development costs
US$'000 Licence costs Total
US$'000 US$'000
Cost
On 1 January 2021 662 - 662
Additions 1,052 500 1,552
At 30 June 2021 1,714 500 2,214
Additions 2,088 - 2,088
At 31 December 2021 3,802 500 4,302
Additions 1,850 - 1,850
At 30 June 2022 5,652 500 6,152
Amortisation
On 1 January 2021 - - -
Charge for the period - - -
At 30 June 2021 - - -
Charge for the period (22) - (22)
At 31 December 2021 (22) - (22)
Charge for the period (210) - (210)
At 31 June 2022 (232) - (232)
Net book value
30 June 2021 1,714 500 2,214
31 December 2021 3,780 500 4,280
30 June 2022 5,420 500 5,920
6. Dividends
No dividends to shareholders of the holding company were provided or paid
during the six months to 30 June 2022 (31 December 2021: £nil).
7. Availability of this announcement
This announcement is available from the Company's website,
https://trellushealth.com/. If you would like to receive a hard copy of the
interim report, please contact the Trellus Health plc's investor relation team
(Walbrook PR) on +44 (0)20 7933 8780 or trellus@walbrookpr.com
(mailto:trellus@walbrookpr.com) to request a copy.
8. Events after the reporting date
There have been no events subsequent to the period end that require disclosure
in these financial statements.
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