Source - LSE Regulatory
RNS Number : 9190Z
OptiBiotix Health PLC
24 September 2020
 

 

 

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces its results for the six months ended 30 June 2020.

 

·    First half revenue growth of £744,821, a five times increase in revenues from H1 2019

·    A 15.5% reduction in other administration costs and a 50% reduction in loss compared to the same period last year

·    A scalable business model delivering a growing number of deals with larger partners, pharmaceutical specialists, and established retailers building brand presence

·    Valuable global intellectual property portfolio of over 70 overlapping patents and 68 trademarks providing strong commercial protection to the group's science and brands

·    Launch of a branded SlimBiome® product range with Holland & Barrett, the first agreement with a major retailer to market our proprietary weight management technology

·    Completion of a successful human study in partnership with Nutrilinea Srl, demonstrating that a new food supplement formulation containing LPLDL® can reduce high blood pressure (hypertension)

·   

·    Extension of the existing terms and territories for our partners CTC Group and Cambridge Commodities for the distribution of SlimBiome®, SlimBiome® Medical and GoFigure

·   

·   

·   

·   

·   

·   

·   

Post-period end highlights

 

·   

·    VSL#

·   

·   

·   

"This has been another period of exciting progress for OptiBiotix with a 400% increase in sales and a large reduction in costs compared to the same period last year. Our divisions are now making strong progress towards profitability with more agreements generating revenues, existing partners increasing sales, and more retail partners launching successful new products. Our products are now being commercialised with large retail and pharmaceutical partners boosting consumer awareness and confidence in our brands with OptiBiotix now being identified as a key player in the microbiome space within industry.

 

 

For further information, please contact:

 

OptiBiotix Health plc

www.optibiotix.com

Stephen O'Hara, Chief Executive

Contact via Walbrook below

 

 

Cairn Financial Advisers LLP (NOMAD)

 

Liam Murray / Jo Turner / Ludovico Lazzaretti

Tel: 020 7213 0880

 

 

finnCap (Broker)

 

Tel: 020 7220 0500

 

 

Walbrook PR Ltd

 

Anna Dunphy

Mob: 07876 741 001

       

 

 

We are pleased to present OptiBiotix Health plc's interim results for the six month period ended 30 June 2020.

The first six months of this year has seen strong revenue growth with a 400% increase in group income and individual divisions reporting a 1,309% (SlimBiome®) and 477% (LPLDL®) increase in revenues. This was achieved against a 15.5% reduction in other administration costs and a 50% reduction in the loss compared to the same period last year. The strong sales growth is especially pleasing given the uncertain global economic environment and impact on potential sales as a result of COVID-19, particularly in countries like India and the USA, in the first six months of the year. Whilst these percentage increases are compared to a low base, there is an acceleration in year-on-year revenue growth as more agreements generate revenues, existing partners grow sales, and more retail partners launch products. The Company is now at a commercial turning point with a proven business model, growing sales from proven products, partners in multiple international territories, and reduced administration and R&D costs. This places the Company in a strong position to exploit the opportunity in the global human microbiome market expected to show a CAGR of 22.60% between 2020 and 2025 (Mordor Intelligence 2019).

s 

·    and;

·    sing next generation products including microbiome modulators, biotherapeutics, and our growing family of SweetBiotix® products.

As we grow sales and profitability in our first generation products, extend our reach into new application areas and territories, and commercialise next generation products the scale of our opportunity enlarges. 

,

Administrative expenses were £896,268 (2019: £1,025,050) with £162,840 non-cash expenses representing depreciation, amortisation and share based payment charges (2019: £157,112). With increasing revenues and decreasing costs, the loss for the first six months of the year was £605,663, a significant decrease (51%) for the same period last year (2019: £1,217,705).

As at 30 June 2020, the Company had £1.47m Group cash balance. Once R&D tax credits are claimed and recoverable VAT repayments are added, the balance would be £1.68m.

The Company received £746,751 of investment income in this period from the disposal of shares in SkinBioTherapeutics plc.

 

LP®

Sales of LPLDL® as an ingredient or final product grew by 477% compared to the same period last year.   Post period, the signing of an agreement with Actial Farmaceutica Srl for the distribution of CholBiome® products was a significant achievement and brings further credibility to the LPLDL® brand. Actial is the developer of one of the world's best-known probiotic brands - VSL#3® - and their products have a reputation for their strong science and clinical studies amongst hospital clinicians, GPs and pharmacists.

 

We now have partners commercialising LPLDL® in over 60 countries including the world's largest probiotic market (USA: Seed Health) and second largest (Italy: AlfaSigma). The next stage of our strategy is to grow sales with existing partners, extend territories and applications, and continue to sign up new partners. In addition to growing sales, the Company is renegotiating contracts as volumes increase to reduce the cost of goods. The renegotiation of our contract with Sacco S.r.l., announced in March 2020, from a profit sharing to a manufacture supply agreement where we buy from Sacco and then sell product to partners ourselves, significantly improved margins. The results of this should be seen in H2 2020.

 

a scientific and clinical evidence base, GRAS, and pharmaceutical GMP manufacture validation increases the potential for LPLDL® to be commercialised as a pharmaceutical drug product and are major points of differentiation from other probiotics. 

 

SlimBiome®

Sales of SlimBiome® as an ingredient or final product grew by 1,309% compared to the same period last year. This was largely driven by partners in the UK, Australia and the USA either launching retail products or building stock levels for the launch of products. Of particular note is the extension of SlimBiome® into everyday foods like muesli and porridge and the development of healthy snacks like fruit and fibre gummies under the SnackSmart® brand. The launch of WellBiome® at the end of the period reflects the growing interest from partners in a science backed Health and Wellbeing microbiome product which taps into a global trend for Health & Wellness, a market estimated to be worth US$4.2 trillion in 2019 with the digestive health segment accounting for US$60 billion.

 

SweetBiotix®

SweetBiotix® is a family of products based on the concept of creating a sweet fibre that has a low glycaemic index, which enhances the microbiome. The concept uses new science, new manufacturing processes, and is a step change from existing products on the market or known to be under development. There are currently around half a dozen types of SweetBiotix® and a couple under development. The aim is to have a broad range of products suitable for a wide range of application areas which meet the needs of multiple partners on applications as diverse as dairy, cereals and hot & cold beverages. The agreement signed post period with a US partner is a significant milestone in the commercialisation of SweetBiotix® products. The agreement, for one part of the SweetBiotix® portfolio, provides an exclusive license in return for the partner bearing all the manufacturing, marketing and commercialisation costs. This is a significant investment for our partner. In return,11 application/ innovation partners.

 

There has been a rapid increase in the number of patents filed in the microbiome space in the last 10 years, and OptiBiotix and Probiotix Health have together filed over 100 patents to protect their commercial interests and create first mover advantage in this evolving field.  This is being supported by a large investment - typically of over £250,000 year - in patents and trademarks to broaden protection in international markets

 

Our Intellectual Property ('IP') strategy has been based on building a portfolio of overlapping patents to protect our commercial interests and reduce the risk of any particular patents failing to grant or being opposed by a competitor. This means that we have multiple composition, application, and process patents to protect each area of our business. Whilst this approach is more costly, it reduces our future commercial risk. As patents are granted in key territories (typically the US, Europe, Canada, Japan, Australia, India) the Group is able to reduce its patent portfolio (from 100 to 70 patents) in some territories to lower IP costs whilst continuing to protect its commercial interests.

 

Our strategy and investment have enabled the Group to build an extensive and valuable intellectual property portfolio of some 70 patents worldwide. In addition to these patents, we have registered over 68 trademarks to provide what is called 'double IP' - a combination of patents and supporting trademarks which allows OptiBiotix to build its trademarked brands supported by its patents.  This approach further reduces risk and in combination creates a valuable IP portfolio in the microbiome field. 

 

During the period to date we have signed new agreements, had product launches, extended our product range or territories with existing partners, and completed a human study. These achievements continue to build shareholder value, example of which are set out below:-

·    Concluding an agreement with Optipharm for the exclusive use of our OptiBiome® weight management ingredient in over 20 countries in its flagship Optislim brand, Australia's leading weight management brand

·    Signing a three-year distribution agreement with a subsidiary of Pierce Group Asia to import and commercialise OptiBiotix's SlimBiome® and LPLDL® in China and Hong Kong

·    Granting MAXCARE Inc exclusive rights to commercialise OptiBiotix's SlimBiome® proprietary weight management technology in Taiwan

·    The signature of a licensing agreement with Granja Pocha S.A. for the inclusion of ProBiotix's patented probiotic strain LPLDL® into a functional yogurt product in Uruguay, South America

·    Conclusion of a new licensing agreement with Velinoff Pharma Ltd for the distribution of ProBiotix's products CholBiome® and CholBiome®X3, which contain OptiBiotix's patented LPLDL® probiotic strain in Bulgaria

·    Reaching a one-year exclusive distribution agreement with Prosperous Pharma, based in Lebanon, to distribute and commercialise OptiBiotix's SlimBiome® Medical to the Gulf Cooperation Council States and the Levant region

·    The launch of a branded SlimBiome® product range with Holland & Barrett, the first agreement with a major retailer to market our proprietary weight management technology

·    The launch in Italy by ALFASIGMA S.p.A. of a food supplement containing our proprietary cholesterol reducing LPLDL® probiotic strain providing an entry into the largest and fastest growing probiotic market in Europe

·    The launch of SlimBiome® in the North American market by Agropur

·    The introduction of SlimBiome® containing products in Walmart and Costco in the USA and Canada through USA partners Smart For Life and Evolution 18

·    The launch of WellBiome®, a patented supplement to improve gut health; this is a proprietary blend of prebiotic functional fibres, functional dietary fibres and minerals optimised to promote the diversity of the gut microbiome

·    Signing a new global manufacturing and supply agreement for LPLDL® with Sacco S.r.l. that changes our original profit-sharing agreement to a manufacture and supply agreement

·    Extension of the existing terms and territories for both CTC Group and Cambridge Commodities for the distribution of SlimBiome®, SlimBiome® Medical and GoFigure

·    Extension of territories with Extensor to distribute GoFigure® consumer weight management products in Ukraine, Estonia, Lithuania, Latvia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Turkmenistan, Armenia, Azerbaijan, Georgia, Belarus, Moldova and Russia 

New Human Studies

·    Completion of a successful human study by ProBiotix Health, in partnership with Nutrilinea Srl, demonstrating that a new food supplement formulation containing LPLDL® can reduce high blood pressure (hypertension) 

 

There has been no change to the OptiBiotix Board during the period. As noted in the annual report, Steve Prescott left his position as CEO of our wholly owned subsidiary ProBiotix Health Ltd by mutual agreement at the end of May 2020. Stephen O'Hara is acting as CEO of ProBiotix Health with the support of Mikkel Hvid-Hansen in the expanded role of Commercial Director.

 

We anticipate that there will be further additions and changes to the B

 

OUTLOOK

 

To support sales growth, we anticipate adding new products across our portfolio. For LPLDL® these include more dairy products, and expanding development of our cardiovascular health portfolio with a blood pressure (CholBiomeBP), and vascular health product (CholBiomeVH). This will complete a suite of cardiovascular applications of different formulations which should meet the regulatory and market needs of most countries around the world. We are also exploring further the potential of  LPLDL®  for its immune health properties after a number of customers have reported reduction in allergies, particularly hay fever, and its use in combination with existing treatments, such as statins, to help lower dose and reduce side effects, whilst maintaining efficacy. We have sequenced LPLDL®'s genome and are exploring the genetic predisposition of the strain to impact on a range of health areas outside of cardiovascular health.  In addition, we have also been awarded (subject to contract) a grant to explore the effect of LPLDL® on stress, anxiety, and sleep disorders with universities in the UK and Europe. 

 

For SlimBiome®, given increased consumer awareness of the human microbiome, and the growing trend in health and wellbeing, we have launched WellBiome®. This uses existing human study data which showed positive effects on the microbiome, mood, and blood pressure. This has allowed us to extend the opportunity outside weight management without adding any development costs by utilising existing studies and changing the dosage in the final product. We have been pleased with the high level of partner interest in WellBiome® as witnessed by the number of agreements signed post period. Investors should also note the number of partners who have gained early success with our products and who are now extending their territories or product range. This has led to the Company continuing to sign new deals and extend existing partner deals as shown by a number of agreements signed post period including:-

 

·    Extension of our existing terms to include WellBiome® with Draco Ingredients GmbH in Germany; Agropur MSI LLC in the USA Canada and Mexico; Maxum Foods in Australia and New Zealand; and CTC Holdings BV in the Philippines, Vietnam, Indonesia, Colombia, the Dominican Republic and Guatemala

·    A non-exclusive distribution agreement with Actial Farmaceutica Srl for the distribution of CholBiome® and CholBiome®X3 in Australia, New Zealand, Indonesia and Thailand, under the VSL#3® range

·    Extension of the terms, territories, and products with CTC Holding BV for the sale of CholBiomeX3 to include LPLDL® as a bulk ingredient and three additional products: CholBiome, CholBiomeBP  and CholBiomeVH,, from the Philippines to include non-exclusive distribution rights for Vietnam, Indonesia, Colombia, the Dominican Republic and Guatemala

·    Extending the terms of our original exclusive licence agreement for OptiBiome® with OptiPharm Pty Ltd. ("OptiPharm") to include Europe in addition to Australia, parts of Asia, New Zealand, Middle East, Gulf States and North America

·    An exclusive agreement with a US company for the large-

 

We continue to explore the potential for a dual international listing in the USA or other international markets. Preparatory work carried out to date includes aligning our financial end of year with similar companies on other international exchanges, reducing our holding in SkinBiotherapeutics plc to reduce the risk of having to include segmental reporting and enhancing our quality and reporting systems. We anticipate further change to the management team and Board and more commercial agreements in the US as we to continue to evolve the Company and build market presence to increase the success of any potential dual listing. 

Investor and consumer interest in the human microbiome is growing,

 

We look forward to the future with a stronger team, more deals, more products, and, most importantly, greater revenues and profitability.

On behalf of everyone at OptiBiotix Health we would like to thank our investors for their continued support and look forward to an exciting future.

 

Consolidated Statement of Comprehensive Income

 

For the six months to 30 June 2020   

 

 

6 months to

30 June

2020

Unaudited

6 months to

31 May

2019

Unaudited

Period to

31 December 2019

Audited

Continuing operations

 

£

£

£

 

 

 

 

 

Revenue

 

744,821

148,818

744,883

 

 

 

 

 

Cost of sales

 

(447,747)

(86,755)

(352,080)

 

 

───────

───────

───────

Gross Profit

 

297,074

62,063

392,803

 

 

 

 

 

Share based payments

 

42,762

73,771

137,320

Depreciation and amortisation

 

120,078

83,341

217,904

Other administrative costs

 

733,428

867,938

2,204,216

 

 

 

 

 

Administrative expenses

 

(896,268)

(1,025,050)

(2,559,440)

 

 

───────

───────

───────

Operating loss

 

(599,194)

(962,987)

(2,166,637)

 

 

 

 

 

Finance income / (costs)

 

(64,682)

(49,907)

(44,356)

Profit on disposal of investments

 

48,967

-

123,468

Share of loss from associate

 

-

(248,117)

(296,344)

 

 

───────

───────

───────

Profit/(Loss) before Income tax

 

(614,909)

(1,261,011)

(2,241,856)

 

 

 

 

 

Income tax

 

9,246

43,306

123,468

 

 

───────

───────

───────

Profit/(Loss) for the period

 

(605,663)

(1,217,705)

(2,118,388)

 

 

 

 

 

Other Comprehensive Income

 

-

-

-

 

 

───────

───────

───────

Total comprehensive income for the period

 

 

(605,663)

 

(1,217,705)

(2,118,388)

 

 

═══════

═══════

═══════

 

 

 

 

 

Total comprehensive income attributable to the owners of the company

 

 

(605,456)

 

(1,216,894)

(2,117,273)

Non-controlling interest

 

(207)

(811)

(1,115)

 

 

═══════

═══════

═══════

 

 

(605,663)

(1,217,705)

(2,118,388)

Profit/(Loss) per share

 

 

 

 

Basic & Diluted - pence

4

(0.70)p

(1.43)p

(2.49)p

 

 

═══════

═══════

═══════

 

 

 

 

 

Basic & Diluted  before

 

(0.70)p

(1.43)p

(2.49)p

Profit on investment revaluation - pence

 

═══════

═══════

═══════

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Financial Position

As at 30 June 2020

 

 

Notes

As at

30 June 2020

Unaudited

As at

31 May

2019

Unaudited

As at

31 December

2019

Audited

ASSETS

 

£

    £

£

Non-current assets

 

 

 

 

Intangibles

 

2,728,393

2,526,369

2,632,778

Property, plant & equipment

 

393

3,143

393

Investments

5

2,395,022

3,492,682

3,092,807

 

 

───────

───────

───────

 

 

5,123,808

6,022,194

5,725,978

 

 

───────

───────

───────

CURRENT ASSETS

 

 

 

 

Inventories

 

112,726

109,241

62,761

Trade and other receivables

 

394,857

77,196

607,308

Current tax asset

 

226,194

265,079

190,435

Cash and cash equivalents

 

1,469,147

984,170

455,608

 

 

───────

───────

───────

 

 

2,202,924

1,435,686

1,316,112

 

 

───────

───────

───────

TOTAL ASSETS

 

7,326,732

7,457,880

7,042,090

 

 

═══════

═══════

═══════

EQUITY

 

 

 

 

Shareholders' Equity

 

 

 

 

Called up share capital

6

1,758,812

1,708,811

1,708,811

Share premium

 

2,537,501

1,646,873

1,646,873

Share based payment reserve

 

782,821

676,510

740,059

Merger relief reserve

 

1,500,000

1,500,000

1,500,000

Convertible Debt Reserve

 

92,712

92,712

92,712

Accumulated profit/(loss)

 

(1,098,381)

407,454

(492,925)

 

 

───────

───────

───────

 

 

5,573,465

6,032,360

5,195,530

Non Controlling Interest

 

35,576

36,086

35,782

 

 

───────

───────

───────

Total Equity

 

5,609,041

6,068,446

5,231,312

 

 

───────

───────

───────

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

419,916

188,608

561,623

 

 

───────

───────

───────

 

 

419,916

188,608

561,623

 

 

───────

───────

───────

Non - current liabilities

 

 

 

 

Deferred tax liability

 

548,863

518,488

522,350

Borrowings

 

748,912

682,338

726,805

 

 

───────

───────

───────

 

 

1,297,775

1,200,826

1,249,155

 

 

───────

───────

───────

TOTAL LIABILITIES

 

1,717,691

1,389,434

1,810,778

 

 

───────

───────

───────

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

7,326,732

7,457,880

7,042,090

 

 

═══════

═══════

═══════

 

 

Consolidated Statement of Changes in Equity

For six months to 30 June 2020

 

 

Called up

Share

Capital

Share

premium

Share-based

Payment

reserve

Non controlling  Interest

Merger

Relief

Reserve

Retained Earnings

Convertible

Loan note

Total

Equity

 

£

£

£

£

£

£

£

£

 

──────

───────

───────

──────

──────

──────

────

───────

Balance at 30 November 2018

1,694,488

1,603,904

602,739

36,897

1,500,000

1,624,348

-

7,062,376

Loss for the period

-

-

-

-

-

(1,216,894)

-

(1,216,894)

Issued share during the period

14,323

42,969

-

-

-

-

-

57,292

Share based payment

-

-

73,771

-

-

-

-

73,771

Conversion rights of convertible loans

-

-

-

-

-

-

92,712

92,712

Non Controlling interest

-

-

-

(811)

-

-

 

(811)

 

──────

───────

───────

──────

──────

──────

──────

───────

Balance at 31 May 2019

1,708,811

1,646,873

676,510

36,086

1,500,000

407,454

92,712

6,068,446

 

──────

───────

───────

──────

──────

──────

──────

───────

Loss for the period

-

-

-

-

-

(900,379)

 

(900,379)

Non-Controlling Interest

-

-

-

(304)

-

-

-

(304)

share based payment

-

-

63,549

-

-

-

-

63,549

 

──────

──────

──────

──────

──────

──────

──────

──────

Balance at 31 December 2019

1,708,811

1,646,873

740,059

35,782

1,500,000

(492,925)

92,712

5,231,312

 

──────

──────

──────

──────

──────

──────

──────

──────

Loss for the period

-

-

-

-

-

(605,456)

-

(605,456)

Non-Controlling Interest

 

 

 

(206)

-

-

-

(206)

Issue of shares during the period

50,001

890,628

-

-

-

-

-

940,629

share based payment

-

-

42,762

-

-

-

 

42,762

 

──────

──────

──────

──────

──────

──────

──────

──────

Balance at 30 June 2020

1,758,812

2,537,501

782,821

35,576

1,500,000

(1,098,381)

92,712

5,609,041

 

──────

──────

──────

──────

──────

──────

──────

──────

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

For the six months to 30 June 2020

 

 

 

Notes

6 months to

30 June

2020

Unaudited

6 months to

31 May

2019

Unaudited

Period to

31 December 2019

Audited

 

 

£

£

£

Reconciliation of loss before income tax to cash outflow from operations

 

 

 

 

                       

Operating loss

 

(599,194)

(962,987)

(2,166,637)

Decrease/ (Increase) in inventories

 

(49,965)

(78,808)

(32,328)

(Increase)/decrease in trade and other

receivables

 

212,451

296,607

(233,505)

(Decrease)/increase in trade and other

payables

 

(141,707)

(332,380)

40,634

Share Option expense

 

42,762

73,771

137,320

Depreciation

 

-

-

2,750

Amortisation of patents

 

120,078

83,341

215,234

 

 

──────

──────

──────

Net cash outflow from operations

 

(415,575)

(920,456)

(2,036,532)

 

 

 

 

 

Interest received

 

52

-

168

Interest paid

 

-

(49,907)

(57)

Tax received

 

-

154,505

313,173

 

 

──────

──────

──────

Net cash outflow from operating activities

 

(415,523)

(815,858)

(1,723,248)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

(215,693)

(356,621)

(594,923)

 

 

──────

──────

──────

Net cash (outflow)/inflow from investing activities

 

(215,693)

(356,621)

(594,923)

 

 

──────

──────

──────

Cash flows from financing activities

 

 

 

 

Share issues

 

898,004

57,292

157,292

Proceeds from borrowings

 

-

775,050

775,050

Disposal of Investments

 

746,751

-

617,130

 

 

──────

──────

──────

Net cash inflow from financing activities

 

1,644,755

832,342

1,449,472

 

 

──────

──────

──────

 

 

 

 

 

Increase/(decrease) in cash and equivalents

 

1,013,539

(340,137)

(868,699)

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

455,608

 

1,324,307

1,324,307

 

 

──────

──────

──────

Cash and cash equivalents at end of year

 

1,469,147

984,170

455,608

 

 

══════

══════

══════

 

 

 

 

Notes to the Half Yearly Report

 

 

1.   General Information

     

 Optibiotix Health Plc is a company incorporated and domiciled in England and Wales. The company's offices are in York. The company is listed on the AIM market of the London Stock Exchange (ticker: OPTI).

 

The financial information set out in this Half Yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The group's statutory financial statements for the period ended 31 December 2019, prepared under International Financial Reporting Standards ("IFRS"), have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain statements under Sections 498(2) and 498 (3) of the Companies Act 2006.

 

Copies of the annual statutory accounts and the Half Yearly report can be found on the Company's website at http://www.optibiotix.com/.

 

2.   Basis of preparation and significant accounting policies

 

This Half Yearly report has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

The interim financial statements have been prepared in accordance with the accounting policies set out in the Annual Report and Accounts for the period ended 31 December 2019.

3.   Segmental Reporting

 

In the opinion of the directors, the Group has one class of business, being that of identifying and developing microbial strains, compounds and formulations for use in the nutraceutical industry. The Group's primary reporting format is determined by the geographical segment according to the location of its establishments. There is currently only one geographic reporting segment, which is the UK. The Directors believe that income, costs, assets and liabilities are interconnected and as there is only one location all income and costs are derived from the single segment. The directors will assess the need for segmental reporting for the year ended 31 December 2020.

 

4.    Earnings per Share

 

      Basic earnings per share is calculated by dividing the earnings attributable shareholders by the weighted average number of ordinary shares outstanding during the period.

 

      Reconciliations are set out below:

 

 

6 Months to

30 June 2020

Unaudited

6 Months to

31 May 2019

Unaudited

 Period to

31 December

 2019

Audited

 

 

 

 

Basic

 

 

 

 

 

 

 

Earnings attributable to ordinary shareholders

(605,663)

(1,216,894)

(2,118,388)

 

 

 

 

Weighted average number of shares

86,379,784

85,178,415

85,262,488

 

 

 

 

Earnings (Loss) per-share - pence

(0.70)p

(1.43)p

(2.49)p

 

═════

═════

═════

 

 

 

 

Diluted

 

 

 

 

 

 

 

Earnings attributable to ordinary shareholders

(605,663)

(1,216,894)

(2,118,388)

 

 

 

 

Weighted average number of shares

86,379,784

85,178,415

85,262,488

 

 

 

 

Earnings (Loss) per-share - pence

(0.70)p

(1.43)p

(2.49)p

 

═════

═════

═════

 

 

 

 

 

 

 

 

Basic and diluted earnings per share are the same for the 6 months to 30 June  2020, since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. As at 30 June 2020 there were 7,765,907 outstanding share options and 329,336 outstanding share warrants.

 

5.   Investments

 

 

 

 

 

Cost

 

£

 

 

 

At 30 November 2018

 

3,740,799

 

 

 

Share of associate loss for the year

 

(296,344)

 

 

 

Disposal of shares during the period

 

(351,648)

 

 

──────

Carrying amount

 

 

At 31 December 2019

 

3,092,807

 

 

  

Disposal of shares during the period

 

(697,785)

 

 

──────

Carrying amount

 

 

At 30 June 2020

 

2,395,022

 

 

══════

 

6.   Share Capital

        Issued share capital comprises:

 

 

 

 

 

6 months

 to 30 June

2020

Unaudited

6 months

 to 31 May

2018

Unaudited

Period to 31

December

2019

Audited

 

 

£

£

£

 

 

 

 

 

Ordinary shares of 2p each

87,940,601

 

1,758,812

1,708,811

1,708,811

 

 

───────

───────

───────

 

 

1,758,812

1,708,811

1,708,811

 

 

═══════

═══════

═══════

 

During the six months to 30 June 2020 the company issued ordinary shares of £0.02 each listed, as follows:

 

 

Date issued

 

Price

 

Type

Number

 

 

 

 

23/04/2020

            £0.40

              Placing

2,500,000

08/06/2020

            £0.08

Warrant exercise

50

 

 

 

───────

 

 

 

      2.500,050

 

 

 

═══════

 

7.   Post balance sheet events

 

No post balance sheet events.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR SEFFIDESSEEU
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account.