Source - RNS
RNS Number : 0101L
Venn Life Sciences Holdings PLC
28 September 2016
 

 

 

28 September 2016

Venn Life Sciences Holdings Plc

("Venn" or the "Company")

Interim Results for 6 months ended 30 June 2016

 

Venn Life Sciences (AIM: VENN), a growing Contract Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announces its unaudited interim results for the six months ended 30 June 2016.

 

Financial Highlights

·     Revenue of €9.06m (H1 2015: €4.25m)

·      EBITDA profit of €0.40m (H1 2015: profit of €0.09m)

·     Operating Loss €0.033m (H1 2015: loss of €0.079m)

·     Cash and cash equivalents of €1.75m at 30th June 2016 (€1.10m at 30th June 2015)

·     Cash and cash equivalents of €2.10m at 23rd September 2016

 

Operational Highlights

·     Progress on Kinesis integration and initial cross sales achieved

·     Continued progress on systems infrastructure with resultant improvements in operating margins

·     Successful achievement of key project milestones leading to strong client endorsements and repeat business 

Post period-end

·     Strengthening of the board with the appointment of Allan Wood as non-Executive Chairman and Mary Sheahan as non-Executive Director

·     Continued positive progress on new business with €2.8m contract and preferred vendorship with big Pharma announced in August

·     The Company has entered into a process to sell its innovation division, Innovenn. This sale will represent the culmination of several months of effort to re-position Innovenn in such a way that will bring better clarity to the performance of the core business, and realise value from our investment in Innovenn.

  

Commenting on the Group's outlook, Allan Wood, non-Executive Chairman of Venn, said:

"The future divestment of Innovenn will have a positive impact on the Company's financial performance in the second half of this year. Importantly the disposal of this business, once achieved, will enable management to singularly focus on the growth of our core business. The addition of Kinesis into the Company has been well received by the market and we expect the second half of the year to see the benefits of this acquisition. Overall we continue to see opportunities for further growth, both organically and through M&A." 

 

 

 

 

 

 

 

 

 

 

Enquiries:

 

Venn Life Sciences Holdings Plc


Allan Wood, Non-Executive Chairman

Tel: +44(0)7185 325 898

Tony Richardson, Chief Executive Officer

Tel: +353 87 2535 982



Davy (Nominated Adviser and Broker)


Fergal Meegan / Matthew de Vere White (Corporate Finance)

Tel: +353 1 679 6363

Orla Bolger (Corporate Broking)




Hybridan LLP (Co-Broker)

Tel: +44 (0)20 3764 2341

Claire Louise Noyce




Walbrook PR Ltd

Tel: +44(0)20 7933 8787 or [email protected]

Paul McManus   

Mob: +44(0)7980 541 893

Lianne Cawthorne

Mob: +44(0)7584 391 303



Chairman's Statement

 

Dear Shareholder,

 

The first half of 2016 has seen continued strong growth in sales and improved EBITDA. Management has focussed on two key areas in the six months: initiatives to improve operating margins and integration of the Kinesis business. These initiatives will continue throughout the full year. The future divestment of Innovenn represents a key development for the Company, offering potential future value for investors, whilst simplifying the current business and allowing greater focus on core areas of activity.

 

Financial Results

Fee income for the first six months of 2016 was €9.06m, up 113% on the first six months of 2015 (H1 2015: €4.25m). EBITDA profit for the period was €0.40m compared to EBITDA profit of €0.09m for the first half of 2015. With current cash reserves of €2.1m the business is well resourced to deliver on its growth plans.

 

As a group, we have continued to report strong growth in revenues and improved profitability. Having achieved reasonable business scale there is now a strong focus on operating efficiency and improved margins.

 

Operational Review

In October 2015 we acquired Kinesis Pharma b.v. Our focus in the first half of this year has been on business stability post-acquisition, cross selling initiatives and integration of certain support functions. The acquisition of Kinesis has been well received by the market and with a stable and talented team we can now move into the second phase of business integration and deliver sustainable business growth.

 

In our late phase business we have focussed our energies on operating profitability and the implementation of systems and processes to deliver higher operating margins. We continue to execute projects to a high standard and this has been reflected in the rate of referrals and repeat business.

 

We have extended our operating capabilities into the USA with the establishment of Venn Inc and the appointment of a VP of Operations USA. We currently have 13 people on the ground in the US and we will continue to cautiously build that base in line with client requirements.    

 

Board Changes

I am pleased to join the board of Venn at this exciting point in its development. I would like to thank Tony Richardson for managing both the Chair and CEO roles for the past nine months and look forward to working with Tony and the team. I would also like to welcome Mary Sheahan to the board. Mary's strong financial credentials and deep life science experience will be a valuable addition to the board.  

 

New Developments and Outlook

Overall I am pleased with the strong progress achieved in this half year. There is a strong pipeline of new opportunities going into the second half of the year and we continue to see an increase in the average size of project wins. We continue to look for earnings enhancing acquisition opportunities, particularly in Central and Eastern Europe. Completing the sale of Innovenn will facilitate a singular focus on the further development of the core business.  

 

Allan Wood

Chairman

28 September 2016



 

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2016

 



Unaudited


Unaudited


Audited



6 months ended


6 months ended


Year ended



30 June


30 June


31 December



2016


2015 - restated


2015 - restated



€'000


€'000


€'000

Continuing operations







Revenue


9,064


4,253


11,468

Administrative expenses


(9,097)


(4,174)


(11,229)

Operating profit/(loss)


(33)


(79)


239

  Depreciation and amortisation


(435)


(173)


(386)

  Exceptional items


-


-


(209)

EBITDA before exceptional items


402


94


834

Finance income


-


-


2

Finance costs


(33)


(41)


(41)

Profit/(loss) before income tax


(66)


(120)


200

Income tax credit/(charge)


-


-


118

Loss for the period from continuing operations


(66)


(120)


318

Discontinued Operations







Loss for the period from discontinued operations


(652)


(139)


(520)

Loss for the period


(718)


(259)


(202)

Profit/(loss attributable







Owners of the parent


(411)


(187)


15

Non-controlling interest


(307)


(72)


(217)

Loss for the year


(718)


(259)


(202)

Currency translation differences


(15)


39


49

Total comprehensive loss for the period


(733)


(220)


(153)

 

Earnings/(loss) per share from continuing and discontinued operations attributable to the owners of the parent during the period





Basic and diluted earnings/(loss) per share


€ Cent


€ Cent


€ Cent

From continuing operations


(0.1)


(0.4)


0.8

From discontinued operations


(0.6)


(0.2)


(0.7)










 

Consolidated Statement of Financial Position

As at 30 June 2016

 



Unaudited


Unaudited


Audited



As at


As at


As at



30 June


30 June


31 December



2016


2015


2015



€'000


€'000


€'000

Assets







Non-current assets







Property, plant and equipment


196


196


381

Intangible assets


4,374


3,170


5,437

Available-for-sale Intangible assets


743





Investments


31


31


31

Total non-current assets


5,344

3,397

5,849








Current assets







Trade and other receivables


7,042


2,627


5,560

Income tax recoverable


100


-


23

Available-for-sale current assets


400


-


-

Cash and cash equivalents


1,748


1,096


3,798

Total current assets


9,290


3,723


9,381

Total assets


14,634


7,120


15,230








Equity attributable to owners







Share capital


155


127


155

Share premium account


14,011


8,073


14,011

Group re-organisation reserve


(541)


(541)


(541)

Reverse acquisition reserve


45


45


45

Foreign currency reserves


34


39


49

Share option reserve


45


-


13

Retained earnings


(4,237)


(4,030)


(3,826)



9,512


3,713


9,906

Non-controlling interest


20


472


327

Total equity


9,532


4,185


10,233








Liabilities







Non-current liabilities







Borrowings


34


-


52

Total non-current liabilities


34


-


52








Current liabilities







Trade and other payables


4,130


2,456


4,218

Available-for-sale current liabilities


202


-


-

Deferred taxation


692


271


692

Deferred consideration


-


71


-

Borrowings


44


137


35

Total current liabilities


5,068


2,935


4,945

Total liabilities


5,102


2,935


4,997

Total equity and liabilities


14,634


7,120


15,230

 



 

Consolidated Statement of Cash Flows

For the 6 months ended 30 June 2016



Unaudited

Unaudited

Audited



6 months ended

6 months ended

Year

ended



30 June

30 June

31 December



2016

2015

2015



€'000

€'000

€'000

Cash Flow from operations





Loss before income tax including discontinued operations


(718)

(259)

(327)

Adjustments:





- Depreciation & Amortisation


489

176

464

- Foreign currency movement


89

(13)

(204)

- Exceptional Item


33

-

209

- Net finance costs


37

41

42

Changes in working capital





- Trade and other receivables


(1,859)

(530)

(3,463)

- Trade and other payables


145

(845)

1,004

Cash used in operations


(1,785)

(1,430)

(2,275)

Interest paid


(37)

(41)

-

Income tax received/(paid)


(77)

32

125

Net cash used in operating activities


(1,898)

(1,439)

(2,150)






Cash flow from investing activities





Acquisition of subsidiaries, net of cash acquired


-

-

(1,893)

Exceptional costs



-

(209)

Purchase of property, plant and equipment (PPE)


16

(506)

(713)

Net cash used in investing activities


16

(506)

(2,815)






Cash flow from financing activities





Proceeds from issuance of ordinary shares


-

2,605

8,571

Payment of deferred consideration


-

(142)

(310)

Repayments on borrowings


(9)

(46)

(94)

Net cash generated by financing activities


(9)

2,417

8,167






Net increase /(decrease) in cash and cash equivalents


(1,891)

472

3,202

Cash and cash equivalents at beginning of year


3,798

596

596

Exchange gain on cash and cash equivalents


(104)

28

-

Cash and cash equivalents at end of period


1,803

1,096

3,798

 

 

 

Cash and cash equivalents include the following for the purposes of the statement of cash flows:

 



Unaudited

Unaudited

Audited



6 months ended

6 months ended

Year

ended



30 June

30 June

31 December



2016

2015

2015



€'000

€'000

€'000

Cash and cash equivalents


1,748

1,096

3,798

Discontinued Operations cash and cash equivalents


55

-

-

Cash and cash equivalents


1,803

1,096

3,798








 

Consolidated Statement of Changes in Shareholders' Equity

 

 

 

 

Share

capital

 

Share

premium

Re-organisation  & reverse acquisition

reserve

Share Option reserve

Foreign Currency reserve

 

Retained

earnings

 

 

Total

 

 

Non-controlling Interests

 

 

Total


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

At 1 January 2015

112

5,483

(496)

-

-

(3,841)

1,258

544

1,802

Changes in equity for 6

months ended 30 June 2015










Total loss for the period

-

-

-

-

-

(187)

(187)

(72)

(259)

Currency translation differences

-

-

-

-

39

-

(39)

-

(39)

Total comprehensive loss

For the period

-

-

-

-

39

(187)

(148)

(72)

(220)

Transactions with the owners

Shares issued

15

2,590

 

-

 

-

 

-

 

-

2,605

-

2,605

Total contributions by and

distributions to owners

15

2,590

-

-

-

-

2,605

-

2,605

At 30 June 2015

127

8,073

(496)

-

39

(4,030)

3,713

472

4,185

Changes in equity for 6 months

ended 31 December 2015










Total gain for the period

-

-

-

-

-

204

204

(145)

59

Currency translation differences

-

-

-

-

10

-

10

-

10

Total comprehensive gain for

the period

-

-

-

-

10

204

214

(145)

69

Transactions with the owners

Shares issued

 

28

 

5,938

-

-

-

-

5,966

-

5,966

Options issued

-

-

-

13

-

-

13

-

13

Total contributions by and

distributions to owners

 

28

 

5,938

-

13

-

-

5,979

-

5,979

At 31 December 2015

155

14,011

(496)

13

49

(3,826)

9,906

327

10,233

Changes in equity for 6 months

ended 30 June 2016










Total loss for the period

-

-

-

-

-

(411)

(411)

(307)

(718)

Currency translation differences

-

-

-

-

(15)

-

(15)

-

(15)

Total comprehensive loss for the period

-

-

-

-

(15)

(411)

(426)

(307)

(733)

Transactions with the owners

Options issued

 

-

 

-

-

32

-

-

32

-

32

At 30 June 2016

155

14,011

(496)

45

34

(4,237)

9,512

20

9,532











 


NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS

 

1.              General information and basis of presentation

 

Venn Life Sciences Holdings Plc is a company incorporated in England and Wales. The Company is a public limited company listed on the AIM market of the London Stock Exchange. The address of the registered office is 4 Lombard Street, London, EC3V 9HD.

 

The Group's principal activity continues to be that of a Clinical Research Organisation (CRO) providing a suite of consulting and clinical trial services to pharmaceutical, biotechnology and medical device organisations. 

 

The financial information in these interim results is that of the holding company and all of its subsidiaries. It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). 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 2015 and which will form the basis of the 2016 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 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. The financial information in respect of the year ended 31 December 2015 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies. The Group's Independent Auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information for the half years ended 30 June 2016 and 30 June 2015 is unaudited and the twelve months to 31 December 2015 is audited.

2. Earnings per share

 

(a) Basic                                              

Basic earnings per share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period.

 


Unaudited


Unaudited


Audited


6 months ended


6 months ended


Year ended


30 June


30 June


31 December


2016


2015


2015

 

Profit/(loss) from continuing operations attributable to equity holders of the Company (€'000)

(66)


(120)


318

Loss from discontinued operations attributable to owners of the parent

(380)


(81)


(303)

Total

(446)


(201)


15







Weighted average number of Ordinary Shares in issue

60,246,433


33,733,046


41,261,849







                                                                   

(b) Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. No share options or warrants outstanding at period end were dilutive and all such potential ordinary shares are therefore excluded from the weighted average number of ordinary shares for the purposes of calculating diluted earnings per share.

 

3.            Dividends

 

There were no dividends provided or paid during the six months.

 

 

4.            Press

                              

A copy of this announcement is available from the Company's website, being www.vennlifesciences.com.  If you would like to receive a hard copy of the interim report please contact the Venn Life Sciences Holdings  Plc offices on +31 (0) 524 712 456 to request a copy.

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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