Probiotix Health PLC - Half-year Report
Announcement provided by
ProBiotix Health Plc · PBX27/09/2023 07:00
27 September 2023
ProBiotix Health plc
("ProBiotix" or the "Company" or, together with its subsidiary, the "Group")
Unaudited Results to 30 June 2023
ProBiotix Health plc (AQSE: PBX), a life sciences business developing probiotics to tackle cardiovascular disease and other lifestyle conditions, announces its unaudited results for the six months to 30 June 2023.
Highlights (including post period end)
· Industry leader Steen Andersen appointed as CEO, effective as of 2 January 2023
· Financially robust with no debt and a strong balance sheet
· Expansion of leadership team with the appointment of Niels Peter Bak as Head of Product Management
· Closing of long-term commercial agreement with third largest supplement brand in
· Successful completion and publication of the second clinical study on the benefits of LPLDL® intake on cardiovascular disease biomarkers
· Exclusive distribution agreement with Trans Chem to cover the Australian and
Steen Andersen, CEO of ProBiotix, commented: "Since I took over as CEO in January 2023, my focus has been on building and developing a defined strategy whereby we are looking to become a solutions provider of finished probiotic products in consumer formats. My objective is to build ProBiotix into a
This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of the
For further information, please contact:
ProBiotix Health plc |
https://probiotixhealth-ir.com/ |
Steen Andersen, Chief Executive Officer |
Contact via Walbrook below |
|
|
Peterhouse Capital Ltd (Aquis Corporate Adviser and Broker) |
Tel: 020 7220 0500 |
Mark Anwyl Duncan Vasey |
Tel: 020 7469 0930 |
|
|
Walbrook PR Ltd |
probiotix@walbrookpr.com |
Anna Dunphy |
Mob: 07876 741 001 |
Chief Executive Officer's overview
We are pleased to present the Group's interim report, for the six months ended 30 June 2023.
ProBiotix Health plc is a life sciences company with the purpose of improving human health through the development and marketing of probiotic product solutions to tackle metabolic related lifestyle conditions, especially within the cardiovascular area.
The global probiotics food and supplement market is forecast to reach
Clinical studies have shown the Group's principal bacteria strain, LPLDL®, to be able to reduce key cardiovascular risk markers, such as total cholesterol, LDL (bad) cholesterol, and Apolipo protein B (biomarker of atherosclerosis), by up to 34.2 per cent, 28.4 per cent and 28.6 per cent, respectively. Six publications on LPLDL®'s mechanisms of action and three peer-reviewed publications have shown LPLDL® to be safe and well-tolerated, as well as showcasing statistically significant reductions in multiple cardiovascular disease risk biomarkers within six weeks. The fact that 50% of all deaths globally can be related to cardiovascular disease, and 80% are believed to be preventable, underlines the scale of the opportunity for LPLDL®.
The Group commercialises LPLDL® in a unique range of patented and proprietary turn-key food supplements as private label or under the CholBiome® brand. The portfolio currently comprises products in four indication categories
· Cholesterol maintenance
· Cholesterol reduction
· Blood pressure reduction
· Vascular health
STRATEGY
The Group's strategic aim is to continue to mature the position as a leading global player within the use of probiotics for prevention in the cardio-metabolic supplement area. The long-term vision is to manifest the Company as a leading provider of probiotic-based metabolic solutions for a broader range of indication areas in the "Healthy Ageing" space such as weight management, sarcopenia and sleep disorders. We intend to continue to develop the Group's business in an area of science which we believe has the potential to revolutionise the future of preventive healthcare.
Our short and medium-term focus will be on expanding the footprint in
COMMERCIAL MILESTONES
Since the beginning of the financial year the following key milestones have been reached:
· Launch of a new five-year strategic growth plan focusing on developing the organisation, sale and marketing of business-to-business turnkey product solutions, establishing a direct sales structure in
· Onboarding of Steen Andersen as Chief Executive Officer of the Group as part of the strategy to appoint an experienced industry business leader leading the Company to the next level.
· Expanding the leadership team by hiring Niels Peter Bak as Head of Product Management. The position is of strategic importance and key in driving the development of new products, dosage format and expansion into additional indication areas. The function will also act as a cornerstone in the relationship to our contract manufacturers.
· Announcement of distributor partnership with TransChem, a leading distributor of products to the food and dietary supplement industry in
· Closing of long-term commercial agreement with third largest supplement brand in
· Successful completion and publication of the second clinical study on the benefits of LPLDL® intake on cardiovascular disease biomarkers, and initiation of further clinical studies on CholBiome® CH to provide clinical evidence on key finished products as part of our strategy to move towards providing finished product solutions.
· Screening to identify probiotic strains that can benefit mental well-being. Our ongoing programme has demonstrated promising laboratory-based results for one of our proprietary strain deposits, which were presented in Probiota 2023. We will be testing its efficacy on improving sleep, stress and anxiety in a human intervention study in collaboration with the universities of
BOARD & MANAGEMENT
The investment in the organisation and the management structure will continue through the addition of experienced industry profiles who can support successful execution of the growth strategy. The composition of the Board will be evaluated on an ongoing basis and required changes will be implemented as needed to ensure optimal support to management and strategy execution.
RESULTS
The financial results for the half year are shown below. As the Group was listed on the Aquis Growth Market on 30 March 2022, the accounts for the comparative period show the results from 31 March 2022 through to 30 June 2022.
During the first half of the financial year the Group received confirmed orders totalling
Other administration costs have risen to
The net loss for the half year stood at
As of 30 June 2023, the Group presented a strong balance sheet with cash balances totalling
OUTLOOK
The Directors and Executives of the Company believe that the financial performance for the first six months of 2023 is satisfactory and reflects the positive momentum the Company has gained as a result of the strategic focus, increased commercial presence, internal competence-building and continued positive science linked to our proprietary probiotic strain, LPLDL®. We aim to continue capitalising on the benefits of our public listing, expanding our existing product portfolio into new geographical territories, increasing our business-to-business sale of finished turnkey products, and developing new technologies that offer enhanced potential for the future. We will continue to work with Aquis and explore opportunities on other markets, including AIM, to increase liquidity in the Company's share price.
The scale of the market opportunity in probiotics, the increasing consumer awareness towards preventive care, the proven efficacy of our existing products, the substantial scope for expansion of our range and geography, the significant benefits of our public listing and the financial strength of the Company all allow us to look to the future with confidence and positive aspirations.
Consolidated Statement of Comprehensive Income
For the 6 months to 30 June 2023
|
|
|
6 months to 30 June 2023 Unaudited |
Period to 30 June 2022 Unaudited |
Period to 31 December 2022 Audited |
Continuing operations |
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
Revenue |
|
|
552 |
302 |
1,309 |
|
|
|
|
|
|
Cost of sales |
|
|
(288) |
(148) |
(570) |
|
|
|
─────── |
─────── |
─────── |
Gross Profit |
|
|
264 |
154 |
739 |
|
|
|
|
|
|
Listing costs |
|
|
- |
(166) |
(166) |
Share based payments |
|
|
(80) |
- |
(8) |
Depreciation and amortisation |
|
|
(28) |
(24) |
(37) |
Other administrative costs |
|
|
(668) |
(274) |
(790) |
|
|
|
|
|
|
|
|
|
─────── |
─────── |
─────── |
Total administrative expenses |
|
|
(776) |
(464) |
(1,001)) |
|
|
|
─────── |
─────── |
─────── |
Operating (loss)/profit |
|
|
(512) |
(310) |
(262) |
|
|
|
|
|
|
Finance income / (costs) |
|
|
- |
59 |
59 |
|
|
|
─────── |
─────── |
─────── |
Profit/(Loss) before Income tax |
|
|
(512) |
(251) |
(203) |
|
|
|
|
|
|
Income tax |
|
|
- |
- |
(12) |
|
|
|
─────── |
─────── |
─────── |
Profit/(Loss) for the period |
|
|
(512) |
(251) |
(215) |
|
|
|
|
|
|
Other Comprehensive Income |
|
|
- |
- |
- |
|
|
|
─────── |
─────── |
─────── |
Total comprehensive income for the period |
|
|
(512) |
(251) |
(215) |
|
|
|
═══════ |
═══════ |
═══════ |
|
|
|
|
|
|
Total comprehensive income attributable to the owners of the Group |
|
|
(512)
|
(251)
|
(215)
|
|
|
|
═══════ |
═══════ |
═══════ |
|
|
|
(512) |
(251) |
(215) |
Earnings/(loss) per share |
|
|
|
|
|
Basic & Diluted - pence |
4 |
|
(0.42)p |
(0.28)p |
(0.24)p |
|
|
|
═══════ |
═══════ |
═══════ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Financial Position
As at 30 June 2023
|
Notes |
As at 30 June 2023 Unaudited |
As at 30 June 2022 Unaudited |
As at 31 December 2022 Unaudited |
ASSETS |
|
£'000 |
£'000 |
£'000 |
Non-current assets |
|
|
|
|
Intangibles |
|
359 |
344 |
358 |
|
|
|
|
|
|
|
─────── |
─────── |
─────── |
|
|
359 |
344 |
358 |
|
|
─────── |
─────── |
─────── |
CURRENT ASSETS |
|
|
|
|
Inventories |
|
77 |
6 |
49 |
Trade and other receivables |
|
101 |
48 |
496 |
Cash and cash equivalents |
|
1,948 |
2,034 |
1,740 |
|
|
─────── |
─────── |
─────── |
|
|
2,126 |
2,088 |
2,285 |
|
|
─────── |
─────── |
─────── |
TOTAL ASSETS |
|
2,485 |
2,432 |
2,643 |
|
|
═══════ |
═══════ |
═══════ |
EQUITY |
|
|
|
|
Shareholders' Equity |
|
|
|
|
Called up share capital |
5 |
61 |
61 |
61 |
Group reorganisation reserve |
|
(945) |
(945) |
(945) |
Share premium |
|
3,338 |
3,338 |
3,338 |
Share based payment reserve |
|
88 |
8 |
8 |
Retained Earnings |
|
(727) |
(251) |
(215) |
|
|
|
|
|
|
|
─────── |
─────── |
─────── |
Total Equity |
|
1,815 |
2,211 |
2,247 |
|
|
─────── |
─────── |
─────── |
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
581 |
142 |
307 |
|
|
─────── |
─────── |
─────── |
|
|
581 |
142 |
307 |
|
|
─────── |
─────── |
─────── |
Non - current liabilities |
|
|
|
|
Deferred tax liability |
|
89 |
79 |
89 |
|
|
─────── |
─────── |
─────── |
|
|
89 |
79 |
89 |
|
|
─────── |
─────── |
─────── |
TOTAL LIABILITIES |
|
670 |
221 |
396 |
|
|
─────── |
─────── |
─────── |
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
2,485 |
2,432 |
2,643 |
|
|
|
|
|
|
|
═══════ |
═══════ |
═══════ |
Consolidated Statement of Changes in Equity
For six months to 30 June 2023
|
Called up Share Capital |
Share premium |
Group Reorganisation reserve |
Share-based Payment reserve |
Retained Earnings |
Total Equity |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
────── |
─────── |
─────── |
─────── |
────── |
─────── |
Balance at 04 November 2021 |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
Group reorganisation |
- |
- |
(945) |
- |
- |
(945) |
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
(251) |
(251) |
|
|
|
|
|
|
|
Share based payments |
- |
- |
- |
8 |
- |
8 |
|
|
|
|
|
|
|
Share Issues |
61 |
3,464 |
- |
- |
- |
3,525 |
|
|
|
|
|
|
|
Share issue costs |
- |
(126) |
- |
- |
- |
(126) |
|
────── |
─────── |
─────── |
─────── |
────── |
─────── |
Balance at 30 June 2022 |
61 |
3,338 |
(945) |
8 |
(251) |
2,211 |
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
- |
36 |
36 |
|
|
|
|
|
|
|
|
────── |
─────── |
─────── |
─────── |
────── |
─────── |
Balance at 31 December 2022 |
61 |
3,338 |
(945) |
8 |
(215) |
2,247 |
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
80 |
(512) |
(432) |
|
────── |
─────── |
─────── |
─────── |
────── |
─────── |
Balance at 30 June 2023 |
61 |
3,338 |
(945) |
88 |
(727) |
1,815 |
|
────── |
─────── |
─────── |
─────── |
────── |
─────── |
Consolidated Statement of Cash Flows
For the six months to 30 June 2023
|
Notes |
6 months to 30 June 2023 Unaudited |
Period to 30 June 2022 Unaudited |
Period to 31 December 2022 Audited |
|
|
|
£'000 |
£'000 |
£'000 |
|
Reconciliation of loss before income tax to cash outflow from operations |
|
|
|
|
|
Operating (loss)/profit |
|
(512) |
(310) |
(262) |
|
Decrease/ (Increase) in inventories |
|
(28) |
(6) |
(49) |
|
(Increase)/decrease in trade and other receivables |
|
395 |
(48) |
(497) |
|
(Decrease)/increase in trade and other payables |
|
275 |
142 |
307 |
|
Share based payments |
|
80 |
- |
- |
|
Depreciation and amortisation |
|
28 |
24 |
37 |
|
Adjustment for net working capital required on common control transaction |
|
- |
(256) |
(256) |
|
Net Fx Difference |
|
(1) |
(2) |
- |
|
|
|
────── |
────── |
────── |
|
Net cash outflow from operations |
|
237 |
(456) |
(720) |
|
|
|
|
|
|
|
|
|
|
- |
- |
|
Tax received |
|
- |
- |
- |
|
|
|
────── |
────── |
────── |
|
Net cash (outflow)/inflow from operating activities |
|
237 |
(456) |
(720) |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Purchase of intangible assets |
|
(29) |
(22) |
(52) |
|
Cash acquired on acquisition of subsidiary |
|
- |
188 |
188 |
|
|
|
────── |
────── |
────── |
|
Net cash (outflow)/inflow from investing activities |
|
(29) |
166 |
136 |
|
|
|
────── |
────── |
────── |
|
Cash flows from financing activities |
|
|
|
|
|
Share issues |
|
- |
2,324 |
2,324 |
|
|
|
────── |
────── |
────── |
|
Net cash inflow from financing activities |
|
- |
2,324 |
2,324 |
|
|
|
────── |
────── |
────── |
|
|
|
|
|
|
|
Increase/(decrease) in cash and equivalents |
|
208 |
2,034 |
1,740 |
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
1,740 |
- |
- |
|
|
|
────── |
────── |
────── |
|
Cash and cash equivalents at end of period |
|
1,948 |
2,034 |
1,740 |
|
|
|
══════ |
══════ |
══════ |
|
Notes to the results
For the three months to 30 June 2023
1. General Information
ProBiotix Health Plc is a company incorporated and domiciled in
The financial information set out in this 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 2022 were prepared under
The interims for the period to 30 June 2022 have been restated following the Board's determination that the most appropriate accounting policy is to apply merger accounting prospectively from 31 March 2022 being the date of the Group's IPO on the Aquis Growth Market. The Group has consolidated ProBiotix Limited's assets and liabilities at book value at 31 March 2022, with the difference between the nominal value of shares issued and net liabilities acquired recorded in a reserve within equity.
Copies of the annual statutory accounts and the Half Yearly report can be found on the Company's website https://probiotixhealth-ir.com/financials/latest-results
2. Basis of preparation and significant accounting policies
This report has been prepared using the historical cost convention, on a going concern basis and in accordance with
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies and making any estimates. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. The Board of Directors believe that the underlying assumptions are appropriate and that the financial statements are fairly presented. The Board of Directors believes that there are no areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, and therefore, these financial statements have limited disclosures.
3. Segmental Reporting
In the opinion of the directors, the Group has one class of business, in three geographical areas, being that of identifying and developing microbial strains, compounds and formulations for use in the nutraceutical industry. The Group sells into three highly interconnected markets, all costs assets and liabilities are derived from the
Following the listing of Company on the Aquis Growth Market, only the turnover from ProBiotix Health Limited for the period 31 March 2022 to 30 June 2022 is included in the figures below.
Revenue analysed by geographical market
|
6 months 30 June 2023 |
Period to 30 June 2022 |
Year to 31 December 2022 |
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
28 |
22 |
43 |
|
US |
350 |
190 |
934 |
|
International |
174 |
90 |
332 |
|
|
────── |
────── |
────── |
|
|
552 |
302 |
1,309 |
|
|
══════ |
══════ |
══════ |
|
During the reporting period one customer represented
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 2023 Unaudited |
Period to 30 June 2022 Unaudited |
Year to 31 December 2022 Audited |
|
£ |
£ |
£ |
Basic & Diluted |
|
|
|
|
|
|
|
Earnings attributable to ordinary shareholders |
(512,452) |
(250,822) |
(214,580) |
|
|
|
|
Weighted average number of shares |
121,666,666 |
90,398,559 |
90,398,559 |
|
|
|
|
Earnings /(Loss) per-share - pence |
(0.42) p |
(0.28) p |
(0.24)p |
|
═════ |
═════ |
═════ |
|
|
|
|
.
|
|
|
|
As at 30 June 2022 there were 6,500,000 outstanding share options. These are non-dilutive due to the losses incurred in the year.
5. Share Capital
Issued share capital comprises:
|
|
6 Months to 30 June 2023 Unaudited |
Period to 30 June 2022 Unaudited |
Year to 31 December 2022 Audited |
|
|
|
|
£ |
£ |
£ |
|
|
|
|
|
|
|
|
|
Ordinary shares of 0.05p each 121,666,666 |
|
60,833 |
60,833 |
60,833 |
|
|
|
|
|
|
|
|
|
|
|
─────── |
─────── |
─────── |
|
|
|
|
60,833 |
60,833 |
60,833 |
|
|
|
|
═══════ |
═══════ |
═══════ |
|
|
6. Post balance sheet events
No post balance sheet events.
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.