Goodbody Health Inc. - Audited Results to 31 December 2021
RNS Number : 9835J
Goodbody Health Inc.
03 May 2022
 

 


3 May 2022

Goodbody Health Inc.
("Goodbody Health", or the "Company")

 

Goodbody Health Inc publishes its 2021 audited Financial Statements
 

Goodbody Health Inc. is pleased to announce today a positive adjusted EBITDA of £0.48 million in its audited Financial Statements for the year to 31 December 2021. The Company has filed the Financial Statements and Management's Discussion and Analysis for year ending 2021 with strong results, especially in the second half of the year due to its growth in testing services. All amounts unless stated otherwise are presented in British Pounds (GBP).

The Company having met its ambition of diversifying within the Wellness sector through the rollout of additional testing clinics continues to expand both its clinic footprint and the range of tests offered. The Company is rapidly becoming an aggregator of innovative technology and innovative tests, including blood and genome, and is highly active in looking at novel products to enable consumers to take more control of their wellbeing.

The Company's CBD products have successfully met the requirements of the FSA novel food list while both its Polish subsidiary and Phytovista Laboratories have achieved accreditations and registrations to support the quality agenda on the CBD side of the group.  CBD related revenue during 2021 underperformed, and thus supports the Boards decision to diversify revenue opportunities.

Management have therefore taken a cautious approach to goodwill and intangibles from the StillCanna reverse takeover in 2020, posting impairments to strengthen the balance sheet going forward.

2021 Highlights:

·    Revenue 755% higher than 2020.  £17.06m (2020: £1.99m), £15.07m more than the previous year, making it the highest revenue year since inception, driven by the clinic testing business.

·    Gross profit 695% higher than 2020.  £8.93m (2020: £1.12m), £7.81m more than the previous year. The gross profit percentage margin remains strong at 52% although slightly lower than the previous year of 56%

·    Adjusted EBITDA (Adjusted for non-cash items). £0.48m[1] (2020: -£3.27m), £3.75m better than the previous year. 

·    ISO22000 accreditation in Poland. The Polish plant achieved ISO22000 as well as HACCP, GO and GHP, all globally recognised standards for safe food manufacturing.

·    Phytovista Laboratories Granted ISO Accreditation, the Group UK Laboratory, Phytovista Laboratories was granted accreditation for ISO/IEC 17025:2017, General requirements for the competence of testing and calibration laboratories.

·    Two tranches of the Company's non-brokered private placement were issued at a price of C$0.07875 per Unit of 45,888,730 Units for gross proceeds of C$3,613,737.49 and 12,701,557 Units for gross proceeds of C$1,000,247.61.

·    German Distribution. A contract with Lexalife in Germany to distribute Goodbody CBD products signed.

·    Online GP Service. The Introduction of an online GP service

·    Superdrug. The Clinic network partnered with Superdrug to extend the offering for phlebotomy blood services.

·    Clinic network. Over 140 clinics and 32 product tests by year end

The net comprehensive position improved to show a loss of £2.14m (2020: £4.51m). This loss was generated mainly by the prudent impairment of the Polish goodwill (£143k), intangibles (£467k), and farming equipment no longer in regular use (£276k). This impairment was due to lower than expected revenues in Poland and potential risks associated with the potential impact of war in Ukraine. Additionally, there were £309k of net unrealised currency losses on intercompany loans and translation adjustments. The underlying operational performance remained strong as shown by the adjusted EBITDA.

Highlights Subsequent to end 2021:

·    Change of name to Goodbody Health. The Company changed its name to represent a clearer view of the new broader health and wellness strategy.

·    Move up to OTCQB. The company moved from OTC pinks listing to OTCQB.

·    Novel Food acceptance. Goodbody CBD products were listed by the FSA on the novel food list.

·    Phytovista Laboratories Granted Home Office License, the Group UK Laboratory, Phytovista Laboratories was granted a Home Office license to handle controlled substances.

·    The clinic network has grown to over 200 with over 100 being supplied with Abbott machines to test for diabetes and cholesterol, giving results in less than ten minutes as well as the broader range of tests offered totalling 45.

Geremy Thomas, Executive Chairman, says; "The decision to incorporate revenue sources outside CBD has proven to be the right strategy.  I am absolutely delighted by the fantastic revenues driven by strong growth and a clear strategy in the Health & Wellness Sector. We offer our customers choice and the ability to know more to live better.  The NHS plan to place more emphasis on people taking more responsibility of their health will continue to focus the market on prevention rather than symptomatic diagnosis.  We are very much consistent with this approach with our strategy."

The Financial Statements and Management Discussion and Analysis and further information regarding the Company can be found under the Company's profile on www.sedar.com.

The directors of the Company accept responsibility for the contents of this announcement.
 

GOODBDOY HEALTH INC. (FORMALLY SATIVA WELLNESS GROUP INC.)

Consolidated Statements of Financial Position

(Expressed in GBP)

 

December 31, 2021

December 31, 2020

 

 

£

£

Assets

 

 

Cash and cash equivalents

6,068,172

1,872,597

Trade receivables

277,810

112,157

Refundable sales taxes receivable

144,597

66,012

Inventories

588,717

378,368

Assets held for sale

46,345

243,797

Prepaid expenses and deposits

146,145

109,830

Other current assets

24,372

105,617

Total Current Assets

7,296,158

2,888,378

 

 

 

Plant and equipment

2,602,306

3,332,938

Right of use assets

341,792

508,123

Intangible assets

30,941

765,125

Goodwill

572,072

714,972

Total Assets

10,843,269

       8,209,536

 

Liabilities

 

 

Accounts payable and accrued liabilities

2,319,768

1,066,908

Current portion of lease obligation

152,111

168,919

Corporation tax provision

267,376

-

Other current liabilities

850,715

206,499

 

3,589,970

1,442,326

 

 

 

Long-term portion of lease obligation

184,842

330,721

Deferred Tax

-

152,000

Total Liabilities

3,774,812

1,925,047

Shareholders' Equity

 

 

Share capital

15,124,402

12,915,426

Share based payment reserve

3,584,962  

2,874,218

Accumulated other comprehensive Income

332,321

153,693

Deficit

(11,973,228)

(9,658,848)

Shareholders' Equity

7,068,457

6,284,489

Total Liabilities and Shareholders' Equity

10,843,269

8,209,536

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Consolidated Statements of Loss and Comprehensive Loss

 (Expressed in GBP)

 

For the year ended December 31

 

 

2021

2020

 

 

£

£

 

Revenue

17,058,060

1,994,224

 

Cost of sales

(8,127,278)

(870,531)

 

Gross profit

8,930,782

1,123,693

 

Operating Expenses

 

 

 

General and administrative expenses

(8,693,753)

(4,535,218)

 

Share-based payment charges

(276,618)

(1,105,837)

 

Depreciation and amortization

(1,042,825)

(471,387)

 

Asset Impairment/ (reversal)

(275,952)

 

77,212

 

Intangible asset impairment

(475,478)

-

 

Goodwill impairment

(142,900)

 

-

 

Interest income / (expense)

(13,022)

36,514

 

Fair value (loss) / gain on investments

3,379

(29,572)

 

Grant income

25,852

171,257

 

Joint Venture Settlement

201,024

-

 

Foreign currency translation on

(487,235)

(53,593)

 

intercompany loans

 

 

 

 

 

_________

_________

 

Loss before income taxes

(2,246.746)

(4,786,931)

 

Income tax

(67,634)

128,871

 

Net loss

(2,314,380)

(4,658,760)

 

 

 

 

 

Items that may be reclassified to profit or loss

 

 

 

Currency translation adjustment

178,628

153,693

 

 

_________

_________

 

Comprehensive loss for the year

(2,135,752)

(4,505,067)

 

 

 

 

 

Loss per share

Pence

Pence

 

Basic and diluted

(0.62)

(2.77)

 

 

 

 

 

Weighted number of shares outstanding

346,184,976

162,451,094

 

 

           
 

 

 

On behalf of the Board of Directors,

For further information:

 

 

Marc Howells

Chief Executive Officer

Goodbody Health Inc.

+44 (0) 20 7971 1255

enquiries@goodbodyhealth.com

 www.goodbodyhealth.com

Anne Tew

Chief Financial Officer

Goodbody Health Inc.

+44 (0) 20 7971 1255

enquiries@goodbodyhealth.com

 www.goodbodyhealth.com

 

 

 

AQSE Corporate Adviser

Arden Partners plc

Antonio Bossi / George Morgan

+ 44 (0) 20 7614 5900 

 

 

 

 

 

 

 

 

[1] EBITDA has been adjusted for the following non-cash items: share based payment charges, asset impairment and unrealised currency losses

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