TIDMPBX
RNS Number : 7259N
Probiotix Health PLC
27 September 2023
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 p lc (AQSE: PBX), a life sciences busi ness d
eveloping probiotics to tackle cardiovascular disease and other
lifestyle conditions, a nnounces 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 Germany for CholBiome(R) CH launch
-- Successful completion and publication of the second clinical
study on the benefits of LP(LDL) (R) intake on cardiovascular
disease biomarkers
-- E xclusive distribution agreement with Trans Chem to cover
the Australian and New Zealand probiotics market
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 GBP10m plus
turnover company, marketing our products both under our own brands
and partner private labels. We are excited about the future of the
Company and remain committed to providing long term value to our
shareholders."
This announcement contains information which, prior to its
disclosure, was considered inside information for the purposes of
the UK Market Abuse Regulation and the Directors of the Company are
responsible for the release of this announcement.
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 Tel: 020 7220 0500
Adviser and Broker)
Mark Anwyl Tel: 020 7469 0930
Duncan Vasey
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 $94.5 billion by 2027, at a CAGR of 7.9% (Fortune Business
insights, 2022). The Group's strategy is to develop next-generation
science-based microbiome solutions for a broad range of
lifestyle-related health conditions and to deliver commercially
successful products supported by a strong scientific and clinical
evidence base. We aim to partner with leading nutritional and
pharmaceutical companies with a strategic vision to use probiotics
in their offering of products within the area of prevention.
Clinical studies have shown the Group's principal bacteria
strain, LP(LDL) (R), 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 LP(LDL) (R)'s mechanisms of action and three
peer-reviewed publications have shown LP(LDL) (R) 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 LP(LDL)
(R).
The Group commercialises LP(LDL) (R) in a unique range of
patented and proprietary turn-key food supplements as private label
or under the CholBiome(R) 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 Europe as well as expanding the business into the
North American continent specifically focusing on penetrating the
second largest global probiotic market in USA. As part of the
longer-term strategy, commercial activities will include the APAC
region as well as South America. Our focus is to offer full turnkey
business-to-business product solutions and work with leading global
or regional brand owners within the supplement and OTC pharma area
with a vested strategy in probiotics. The customer base will be
expanded through a direct-to-market approach via own direct sales
activities, with the exception of the APAC region, where we have
assessed that a distributor approach for the time being is the most
feasible path forward due to the complexity of the individual
markets in the region.
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 Europe and USA, strengthening of the
value chain and our relationship to the CMOs (contract
manufacturing organisations) used as well as an intensified focus
on expanding the product portfolio into new indication areas.
-- 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 Australia and New Zealand.
-- Closing of long-term commercial agreement with third largest
supplement brand in Germany. The agreement is aiming at launching
CholBiome(R) CH - our newest product line extension - in Germany
during Q4 this year. The launch will eventually be broadened to
include Austria and Switzerland.
-- Successful completion and publication of the second clinical
study on the benefits of LP(LDL) (R) intake on cardiovascular
disease biomarkers, and initiation of further clinical studies on
CholBiome(R) 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 Leeds
and Southampton.
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 GBP1.5m which is 16% greater than
turnover for the period to 31 December 2022 of GBP1.31m. Of the
orders received, GBP552k (2021: GBP302k) had been completed and
invoiced as at 30 June 2023. The increase in sales for the first
half of the year reflects strong development in new customer
acquisition as well as growth from existing customers. Gross profit
for the period amounted to GBP264k (2022: GBP154k).
Other administration costs have risen to GBP668k from GBP274k
for the previous period. Remembering that the previous period
contains only 3 months of administration costs, the remaining
increase in costs of approximately GBP140k, reflects the costs
associated with building the organisation to support the growth of
the Company.
The net loss for the half year stood at GBP512K (2021: Loss
GBP251k) . If the increase in non-cash expenses (share based
payments charge and depreciation) are removed, the net loss for the
half year is GBP449k, which is for a full six months whereas the
loss of GBP251k for the 2022 comparative contains only three months
results.
As of 30 June 2023, the Group presented a strong balance sheet
with cash balances totalling GBP1.94m (2022: GBP2.49m).
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, LP(LDL) (R). 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 Period to Period to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Continuing operations GBP'000 GBP'000 GBP'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 As at As at
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Unaudited
ASSETS GBP'000 GBP'000 GBP'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 Share Group Share-based Retained Total
up premium Reorganisation Payment Earnings Equity
Share reserve reserve
Capital
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 Period Period
to to to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'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 1,740 - -
beginning of period
------------ ------------ ------------
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 com pany incorp orated and d omiciled
in England and Wales. The Com pan y 's offices are in Wakefield.
The Com pany is listed on the Aquis Growth Market (ticker:
PBX).
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 UK - adopted
International Financial Reporting Standards ("IFRS").
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 UK -
adopted International Financial Reporting Standards ("IFRS").
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 UK location.
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 Period to Year to
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
UK 28 22 43
US 350 190 934
International 174 90 332
------------ ------------ ------------
552 302 1,309
During the reporting period one customer represented GBP342,530,
62.2% (2022: GBP190,356, 62.2%) of Group revenues.
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 Period
to to Year to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP GBP GBP
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 Period
to to Year to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP GBP GBP
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.
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END
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