TIDMPXS
RNS Number : 3714Y
Provexis PLC
31 December 2019
31 December 2019
Provexis plc
UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER
2019
AND TOTAL VOTING RIGHTS
Provexis plc ("Provexis" or the "Company"), the business that
develops, licenses and sells the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, announces its
unaudited interim results for the six months ended 30 September
2019.
Highlights
-- Total revenue for the period of GBP222k, 15% ahead of the
prior year (2018: GBP194k) and an all-time high number in the first
half of the year for the Fruitflow business.
-- Planned launch by By-Health, a GBP3bn listed Chinese dietary
supplement business, of a number of Fruitflow based products in the
Chinese market is progressing well. Potential sales volumes remain
at a significant multiple of existing Fruitflow sales.
-- By-Health has made a significant investment in nine separate
studies in China, at its sole expense, in support of the Fruitflow
based products which it plans to launch in China. Studies conducted
in China are needed to obtain 'blue cap' health claim status for
dietary supplements, as required by the Chinese State
Administration for Market Regulation (SAMR).
-- The five studies which have been completed by By-Health
showed excellent results in use for Fruitflow, and provide strong
evidence for By-Health in its regulatory submissions for Fruitflow.
If a successful blue cap health claim is achieved it would be
expected to result in some significant orders for Fruitflow,
potentially at a multiple of Fruitflow's existing annual sales.
-- Open-ended collaboration agreement secured with By-Health in
August 2019, with project work to be managed and conducted by
Provexis primarily in the UK; initial project agreed which will
concentrate on the use of Fruitflow with nitrates in exercise, an
area of considerable commercial interest to By-Health in China. The
agreement further strengthens the close relationship between
By-Health and Provexis.
-- The Company and its commercial partner DSM have seen an
encouraging and sustained increase in brand awareness and customer
interest in Fruitflow in recent years, with the total projected
annual sales value of the prospective sales pipeline for Fruitflow
standing at a substantial multiple of existing annual sales. Total
revenue from the DSM Alliance for the period was GBP162k, 35% ahead
of the prior year (2018: GBP120k) and an all-time high number in
the first half of the year for the Fruitflow DSM Alliance
business.
-- Total sales of the Company's Fruitflow+ Omega-3 dietary
supplement business grew by 28% in the half year to GBP60k (2018:
GBP47k) across Holland & Barrett, the Company's website
www.fruitflowplus.com and Amazon UK. Subscriber numbers on the
www.fruitflowplus.com website have been growing steadily, and
currently stand at an all-time high level. Further UK and
international sales channel opportunities are currently being
progressed.
-- Underlying operating loss* reduced to GBP126k, 18% lower than
the prior year (2018: GBP154k) and a record low for the Group in
the first half of the year.
-- Cash GBP173k at 30 September 2019 (2018: GBP556k). The
Company raised GBP301k from a placing in December 2019 with new and
existing investors at 0.40p per new ordinary share.
*before share based payments of GBP39k (2018: GBP75k), as set
out on the face of the Consolidated Statement of Comprehensive
Income
Provexis Chairman Dawson Buck commented:
'The Company has seen a strong start to the 2019/20 financial
year, with total revenues 15% ahead of the prior year. Revenues
from the DSM Alliance Agreement for Fruitflow grew by 35% year on
year, and sales from the Company's Fruitflow+ Omega-3 dietary
supplement business grew by 28% in the half year, with subscriber
numbers on the www.fruitflowplus.com website currently standing at
an all-time high level.
The planned launch by By-Health, a GBP3bn listed Chinese dietary
supplement business, of a number of Fruitflow based products in the
Chinese market is progressing well with potential sales volumes
remaining at a significant multiple of existing Fruitflow
sales.
By-Health has made a significant investment in nine separate
clinical studies in China, at its sole expense, in support of the
Fruitflow based products which it plans to launch in China. The
five studies which have been completed by By-Health showed
excellent results in use for Fruitflow, and provide strong evidence
for By-Health in its regulatory submissions for Fruitflow.
If a successful blue cap health claim is achieved for Fruitflow
in China it would currently be expected to result in some
significant recurring orders for Fruitflow, at a multiple of
current total sales values.
In August 2019 the Company was delighted to announce it had
signed an open-ended collaboration agreement with By-Health, in
support of By-Health's planned launch of Fruitflow based products
in the Chinese market. Project work will be managed and conducted
by Provexis primarily in the UK, with the first project agreed
concentrating on the use of Fruitflow with nitrates in exercise, an
area of considerable commercial interest to By-Health. The
agreement further strengthens the close relationship between
By-Health and Provexis.
The Company would like to thank its customers and shareholders
for their continued support, and the Board remains positive about
the outlook for Fruitflow and the Provexis business for the second
half of the financial year and beyond.'
For further information please contact:
Provexis plc Tel: 07490 391888
Ian Ford, CEO and CFO enquiries@provexis.com
Dawson Buck, Non-executive Chairman
Allenby Capital Limited (Nominated Tel: 020 3328 5656
Adviser and Broker)
Nick Naylor / Liz Kirchner
Chairman's statement
The Company has had an active first six months of the year,
seeking to enhance further the commercial prospects of its
innovative, patented Fruitflow(R) heart-health ingredient.
The Company's Alliance partner DSM Nutritional Products ('DSM')
has continued to develop the market actively for Fruitflow in all
global markets. More than 90 regional consumer healthcare brands
have now been launched by direct customers of DSM, and a number of
further regional brands have been launched through DSM's
distributor channels.
The Company and DSM have seen an encouraging increase in brand
awareness and customer interest in Fruitflow in recent years, with
an increasing number of further commercial projects being initiated
with prospective customers, including some prospective customers
which are part of global businesses.
The Company continues to work closely with DSM, seeking to
support various prospective customers globally with their
commercialisation plans for Fruitflow, and the total projected
annual sales value of the prospective sales pipeline for Fruitflow
continues to stand at a substantial multiple of existing annual
sales.
Revenues for the half year were GBP222k (2018: GBP194k), an
increase of 15% relative to the prior year, reflecting:
-- An increase in the net income received from the Company's
Alliance Agreement with DSM, which grew by 35% to GBP162k in the
period (2018: GBP120k), an all-time high number in the first half
of the year for the Fruitflow DSM Alliance business;
-- An increase in revenue from the Company's Fruitflow+ Omega-3
business, including Holland & Barrett, the Company's website
www.fruitflowplus.com and Amazon UK. This business grew by 28% in
the half year to GBP60k (2018: GBP47k).
-- Amounts in excess of GBP26k which were received in the prior
year for marketing support, compared to amounts of GBPNil which
were received in the current year.
Underlying operating loss for the half year was reduced to
GBP126k, 18% lower than the prior year (2018: GBP154k) and a record
low for the Group in the first half of the year.
By-Health Co., Ltd.
The Company has previously announced it was working with DSM and
BY-HEALTH Co., Ltd ('By-Health'), a listed Chinese dietary
supplement business valued at approximately GBP3bn, to support the
planned launch of a number of Fruitflow based products in the
Chinese market.
The planned launch of a number of Fruitflow based products in
the Chinese market, with potential volumes at a significant
multiple of existing Fruitflow sales, is progressing well, with
activities driven at present by the need to obtain 'blue cap'
health claim status for Fruitflow as a dietary supplement with the
State Administration for Market Regulation (SAMR), a new Chinese
market regulator which has taken over the responsibilities of the
former China Food and Drug Administration (CFDA).
Clinical studies conducted in China are typically required to
obtain blue cap health claim status, and a significant investment
in nine separate studies, in support of the Fruitflow based
products which By-Health plans to launch in China, is being
undertaken at By-Health's expense.
Five studies have been successfully completed in China, one
clinical study and one animal study are currently ongoing and a
further planned two human studies in 2020 have recently been
confirmed by By-Health.
The five completed studies showed excellent results in use for
Fruitflow, and they provide strong evidence for By-Health in its
blue cap and other regulatory submissions to the SAMR for
Fruitflow, supported by the Company's existing European Food Safety
Authority ('EFSA') health claim for Fruitflow.
If a successful blue cap health claim is achieved for Fruitflow
it would currently be expected to result in some significant orders
for the product, potentially at a multiple of current total sales
values. The Company will provide shareholders with as much
information as it can on the timing of this highly commercially
sensitive and potentially transformative process, subject to the
multi-party confidentiality arrangements which inevitably surround
the process.
In August 2019 the Company confirmed it had entered into a new
collaboration agreement with By-Health to support the planned
launch by By-Health of a number of Fruitflow based products in the
Chinese market. The new collaboration agreement has been structured
on an open-ended framework basis, enabling the parties to conduct a
number of different projects over an unspecified period of time
under the one overriding agreement, with all projects envisaged to
be at By-Health's sole expense.
Projects conducted under the agreement will be focussed on
specific areas of commercial focus for By-Health, and the first
project which has been agreed will concentrate on the use of
Fruitflow with nitrates in exercise, an area of considerable
commercial interest to By-Health in China. Project work will be
managed and conducted by Provexis primarily in the UK, led by
Provexis' Chief Scientific Officer Dr Niamh O'Kennedy and supported
by outsourced research partners which will be appointed and managed
by Provexis.
The Fruitflow with nitrates in exercise project is expected to
provide gross income to Provexis in excess of GBP55k in the 2020
calendar year, to include an element of overhead recovery. The
project will not affect the ownership of Provexis' existing,
substantial intellectual property for the Fruitflow with nitrates
formulation, which already has patents granted in the UK, Australia
and Japan. Further patents for this formulation are being sought in
Europe, the US, China and ten other territories, with potential
patent protection out to December 2033.
There are more than 230m people in China who are currently
thought to have cardiovascular disease, and a significant increase
in cardiovascular events is expected in China over the course of
the next decade based on population aging and growth alone (source:
World Health Organisation - Cardiovascular diseases, China
www.wpro.who.int/china/mediacentre/factsheets/cvd/en). China is now
the world's second-largest pharmaceuticals market, measured by how
much patients and the state spend on drugs (source: health-care
information company IQVIA). The Company believes that Fruitflow has
the potential to play an important role in the Chinese
cardiovascular health market.
Fruitflow+ dietary supplement products
In August 2018 Fruitflow+ Omega-3 was launched in more than 660
Holland & Barrett stores across the UK and Ireland, giving
Fruitflow+ Omega-3 widespread consumer exposure.
Fruitflow+ Omega-3 is also available to purchase from Amazon UK
and from the Company's e-commerce website www.fruitflowplus.com
which is particularly focussed on subscription orders. The product
has a Facebook page at www.facebook.com/FruitflowPlus and a newly
developed Instagram page at www.instagram.com/fruitflowplus.
Subscriber numbers on the www.fruitflowplus.com website have
been growing steadily, and currently stand at an all-time high
level. The Company is seeking to expand further its commercial
activities with Fruitflow+ Omega-3 and other Fruitflow+ combination
products, with some UK and international sales channel
opportunities currently being progressed.
The Company believes that Fruitflow has an important role to
play in women's cardiovascular health, and it has launched a
dedicated new section of its consumer website at
www.fruitflowplus.com/womens-health. The Company sponsored the
annual MegsMenopause conference in May 2019, and delivered a
high-profile presentation at the conference.
A dedicated product video for Fruitflow+ Omega-3 was launched in
March 2019, and a Fruitflow App is also being developed, primarily
for use on mobile device platforms.
Further interest in the role of Fruitflow in exercise was
generated by Team Sunweb Pro Cycling's use of Fruitflow in the 2018
Tour de France, and the Company is progressing the formulation and
launch of a Fruitflow+ nitrates dietary supplement product which
was used by Team Sunweb in the 2019 Tour de France
www.fruitflowplus.com/sportrecovery.
Intellectual property
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow as part of the Alliance Agreement
with DSM, and patent coverage for Fruitflow now includes the
following patent families:
-- Improved Fruitflow / Fruit Extracts, which was granted by the
European Patent Office in January 2017. The patent has been granted
in eight other major territories to include China, and patent
applications are at a late stage of progression in a further six
global territories, with potential patent protection out to
November 2029.
-- Antihypertensive (blood pressure lowering) effects in
collaboration with the University of Oslo, which have now been
granted for Fruitflow in Europe and three other major territories.
Patent applications are being progressed in a further five major
territories to include the US and China, with potential patent
protection out to April 2033.
-- The use of Fruitflow with nitrates in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise. The patent was first granted by the UK IPO
(Intellectual Property Office) in May 2017, and further patents
have been granted in Australia and Japan. Further patents for this
formulation are being sought in Europe, the US, China and ten other
territories, with potential patent protection out to December
2033.
-- The use of Fruitflow in protecting against the adverse
effects of air pollution on the body's cardiovascular system, which
extends potential patent protection for Fruitflow out to November
2037. Recent laboratory work has shown that Fruitflow can reduce
the platelet activation caused by airborne particulate matter, such
as that from diesel emissions, by approximately one third.
Research and development costs for the half year were GBP134k
(2018: GBP114k), with the GBP20k year on year increase being
primarily due to Fruitflow air pollution patents entering the
national phase of the patent application process, a one-off event
in the process which represents the most significant pre-patent
grant costs.
Capital structure and funding
On 11 December 2019 the Group announced it had raised proceeds
of GBP301,333 via the placing of 75,333,333 new ordinary shares of
0.1p each at a gross 0.40p per share with investors, with no
commissions payable. The placing shares were admitted to trading on
AIM on 17 December 2019.
The Company is seeking to maximise the commercial returns that
can be achieved from its Fruitflow technology, and the Company's
cost base and its resources continue to be very tightly managed.
The Company remains keen to minimise dilution to shareholders and
it is focussed on moving into profitability as Fruitflow revenues
increase, but while the Company remains in a loss-making position
it will need to raise funds to support working capital on
occasions.
People
In April 2019 the Company announced the appointment of Dr Niamh
O'Kennedy as an Executive Director of the Company, and as Chief
Scientific Officer.
In conjunction with Niamh's appointment, Ian Ford's role was
expanded to Chief Financial Officer and Chief Operating Officer and
Dawson Buck's role changed from Executive Chairman to Non-executive
Chairman. In September 2019 Ian Ford's role was further expanded to
CEO (now, CEO and CFO).
Outlook
The Company has seen a strong start to the 2019/20 financial
year, with total revenues 15% ahead of the prior year. Revenues
from the DSM Alliance Agreement for Fruitflow grew by 35% year on
year, and sales from the Company's Fruitflow+ Omega-3 dietary
supplement business grew by 28% in the half year, with subscriber
numbers on the www.fruitflowplus.com website currently standing at
an all-time high level.
The planned launch by By-Health, a GBP3bn listed Chinese dietary
supplement business, of a number of Fruitflow based products in the
Chinese market is progressing well with potential sales volumes
remaining at a significant multiple of existing Fruitflow
sales.
By-Health has made a significant investment in nine separate
clinical studies in China, at its sole expense, in support of the
Fruitflow based products which it plans to launch in China. The
five studies which have been completed by By-Health showed
excellent results in use for Fruitflow, and provide strong evidence
for By-Health in its regulatory submissions for Fruitflow.
If a successful blue cap health claim is achieved for Fruitflow
in China it would currently be expected to result in some
significant recurring orders for Fruitflow, at a multiple of
current total sales values.
In August 2019 the Company was delighted to announce it had
signed an open-ended collaboration agreement with By-Health, in
support of By-Health's planned launch of Fruitflow based products
in the Chinese market. Project work will be managed and conducted
by Provexis primarily in the UK, with the first project agreed
concentrating on the use of Fruitflow with nitrates in exercise, an
area of considerable commercial interest to By-Health. The
agreement further strengthens the close relationship between
By-Health and Provexis.
The Company would like to thank its customers and shareholders
for their continued support, and the Board remains positive about
the outlook for Fruitflow and the Provexis business for the second
half of the financial year and beyond.
Dawson Buck
Chairman
Consolidated statement of comprehensive
income Unaudited Unaudited Audited
Six months ended 30 September 2019 six months six months year
ended ended ended
30 September 30 September 31 March
2019 2018 2019
GBP GBP GBP
Notes
----------------------------------------- ------ ------------- ------------- ----------
Revenue 222,262 193,753 322,189
Cost of goods (19,733) (26,798) (49,433)
----------------------------------------- ------ ------------- ------------- ----------
Gross profit 202,529 166,955 272,756
Selling and distribution costs (19,527) (19,227) (35,033)
Research and development costs (134,078) (114,367) (229,876)
Administrative costs (including share
based payment charges) (223,377) (269,690) (557,960)
R&D tax relief: payable tax credit 8,900 7,730 16,210
Underlying operating loss (126,155) (153,894) (384,900)
Share based payment charges (39,398) (74,705) (149,003)
----------------------------------------- ------ ------------- ------------- ----------
Loss from operations (165,553) (228,599) (533,903)
Finance income 155 124 528
Loss before taxation (165,398) (228,475) (533,375)
Taxation - - -
Loss and total comprehensive expense for
the period (165,398) (228,475) (533,375)
------------------------------------------------- ------------- ------------- ----------
Attributable to:
Owners of the parent (150,884) (213,761) (513,033)
Non-controlling interests (14,514) (14,714) (20,342)
Loss and total comprehensive expense for
the period (165,398) (228,475) (533,375)
------------------------------------------------- ------------- ------------- ----------
Loss per share to owners of the parent
Basic and diluted - pence 3 (0.01) (0.01) (0.03)
----------------------------------------- ------ ------------- ------------- ----------
Consolidated statement of financial
position Unaudited Unaudited Audited
30 September 2019 30 September 30 September 31 March
2019 2018 2019
Notes GBP GBP GBP
------------------------------------- ------ ------------- ------------- -------------
Assets
Current assets
Inventories 26,132 68,501 45,866
Trade and other receivables 147,327 108,166 59,603
Corporation tax asset 25,100 22,440 30,920
Cash and cash equivalents 173,263 161,192 325,642
Cash and cash equivalents - placing
funds received prior to placing
on 5 October 2018 4 - 395,000 -
Total current assets 371,822 755,299 462,031
------------------------------------- ------ ------------- ------------- -------------
Total assets 371,822 755,299 462,031
------------------------------------- ------ ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (158,934) (184,809) (123,143)
Placing funds received, prior
to
placing on 5 October 2018 4 - (395,000) -
------------------------------------- ------ ------------- ------------- -------------
Total current liabilities (158,934) (579,809) (123,143)
------------------------------------- ------ ------------- ------------- -------------
Net current assets 212,888 175,490 338,888
------------------------------------- ------ ------------- ------------- -------------
Total liabilities (158,934) (579,809) (123,143)
------------------------------------- ------ ------------- ------------- -------------
Total net assets 212,888 175,490 338,888
------------------------------------- ------ ------------- ------------- -------------
Capital and reserves attributable
to
owners of the parent company
Share capital 1,983,988 1,885,238 1,983,988
Share premium reserve 17,474,796 17,179,546 17,474,796
Merger reserve 6,599,174 6,599,174 6,599,174
Retained earnings (25,353,106) (25,016,646) (25,241,620)
------------------------------------- ------ ------------- ------------- -------------
704,852 647,312 816,338
Non-controlling interest (491,964) (471,822) (477,450)
Total equity 212,888 175,490 338,888
------------------------------------- ------ ------------- ------------- -------------
Consolidated statement of cash flows Unaudited Unaudited Audited
30 September 2019 six months six months year
ended ended ended
30 September 30 September 31 March
2019 2018 2019
GBP GBP GBP
Cash flows from operating activities
Loss after tax (165,398) (228,475) (533,375)
Adjustments for:
Finance income (155) (124) (528)
Tax credit receivable (8,900) (7,730) (16,210)
Share-based payment charge 39,398 74,705 149,003
Changes in inventories 19,734 (57,980) (35,345)
Changes in trade and other receivables (87,585) (43,423) 5,056
Changes in trade and other payables 35,791 95,426 33,760
Net cash flow from operations (167,115) (167,601) (397,639)
------------------------------------------- ------------- ------------- ----------
Tax credits received 14,720 13,625 13,625
Total cash flow from operating activities (152,395) (153,976) (384,014)
------------------------------------------- ------------- ------------- ----------
Cash flow from investing activities
Interest received 16 2 490
Total cash flow from investing activities 16 2 490
------------------------------------------- ------------- ------------- ----------
Cash flow from financing activities
Proceeds from issue of share capital - - 394,000
Placing funds received, prior to placing
on 5 October 2018 - 395,000 -
------------------------------------------- ------------- ------------- ----------
Total cash flow from financing activities - 395,000 394,000
------------------------------------------- ------------- ------------- ----------
Net change in cash and cash equivalents (152,379) 241,026 10,476
Opening cash and cash equivalents 325,642 315,166 315,166
Closing cash and cash equivalents 173,263 556,192 325,642
------------------------------------------- ------------- ------------- ----------
Consolidated
statement
of changes in Total
equity Share Share Warrant Merger Retained equity Non- Total
30 September attributable
2019 to owners controlling
capital premium reserve reserve earnings of interests equity
the parent
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
At 31 March
2018 1,885,238 17,179,546 26,200 6,599,174 (24,903,790) 786,368 (457,108) 329,260
Share-based
charges - - - - 74,705 74,705 - 74,705
Warrants -
lapsed
10 September
2018 - - (26,200) - 26,200 - - -
Total
comprehensive
expense for
the
period - - - - (213,761) (213,761) (14,714) (228,475)
At 30
September
2018 1,885,238 17,179,546 - 6,599,174 (25,016,646) 647,312 (471,822) 175,490
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 74,298 74,298 - 74,298
Issue of
shares
- placing
5 October
2018 98,750 295,250 - - - 394,000 - 394,000
Total
comprehensive
expense for
the
period - - - - (299,272) (299,272) (5,628) (304,900)
At 31 March
2019 1,983,988 17,474,796 - 6,599,174 (25,241,620) 816,338 (477,450) 338,888
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 39,398 39,398 - 39,398
Total
comprehensive
expense for
the
period - - - - (150,884) (150,884) (14,514) (165,398)
At 30
September
2019 1,983,988 17,474,796 - 6,599,174 (25,353,106) 704,852 (491,964) 212,888
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
1. General information, basis of preparation and accounting
policies
General information
Provexis plc is a public limited company incorporated and
domiciled in the United Kingdom (registration number 05102907). The
address of the registered office is 2 Blagrave Street, Reading,
Berkshire RG1 1AZ, UK.
The main activities of the Group are those of developing,
licensing and selling the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient.
Basis of preparation
This condensed financial information has been prepared using
accounting policies consistent with International Financial
Reporting Standards in the European Union (IFRS).
The same accounting policies, presentation and methods of
computation are followed in this condensed financial information as
are applied in the Group's latest annual audited financial
statements, except as set out below. While the financial figures
included in this half-yearly report have been computed in
accordance with IFRS applicable to interim periods, this
half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in
IAS 34.
Use of non-GAAP profit measure - underlying operating profit
The directors believe that the operating loss before share based
payments measure provides additional useful information for
shareholders on underlying trends and performance. This measure is
used for internal performance analysis. Underlying operating loss
is not defined by IFRS and therefore may not be directly comparable
with other companies' adjusted profit measures. It is not intended
to be a substitute for, or superior to IFRS measurements of
profit.
The interim financial information does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006 and
has been neither audited nor reviewed by the Company's auditors BDO
LLP pursuant to guidance issued by the Auditing Practices
Board.
The results for the year ended 31 March 2019 are not statutory
accounts. The statutory accounts for the last year ended 31 March
2019 were approved by the Board on 9 September 2019 and are filed
at Companies House. The report of the auditors on those accounts
was unqualified, contained an emphasis of matter with respect to
going concern, and did not contain a statement under section 498 of
the Companies Act 2006.
The interim report for the six months ended 30 September 2019
can be downloaded from the Company's website www.provexis.com.
Further copies of the interim report and copies of the 2019 annual
report and accounts can be obtained by writing to the Company
Secretary, Provexis plc, 2 Blagrave Street, Reading, Berkshire RG1
1AZ, UK.
This announcement was approved by the Board of Provexis plc for
release on 31 December 2019.
Going concern
The Directors are of the opinion that at 31 December 2019, the
Group and Company's liquidity and capital resources are adequate to
deliver the current strategic objectives and 2020 business plan and
that the Group and Company remain a going concern.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2019, as
described in those annual financial statements.
2. Segmental reporting
The Group's operating segments are determined based on the
Group's internal reporting to the Chief Operating Decision Maker
(CODM). The CODM has been determined to be the Board of Directors
as it is primarily responsible for the allocation of resources to
segments and the assessment of performance of the segments. The
performance of operating segments is assessed on revenue.
The CODM uses revenue as the key measure of the segments'
results as it reflects the segments' underlying trading performance
for the financial period under evaluation. Revenue is reported
separately to the CODM and all other reports are prepared as a
single business unit.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2019 2018 2019
DSM Alliance Agreement 162,448 120,381 197,530
Fruitflow+ Omega 3 59,814 46,889 98,176
Other income - 26,483 26,483
222,262 193,753 322,189
------------------------ ------------- ------------- ---------
3. Earnings per share
Basic earnings per share amounts are calculated by dividing the
profit attributable to owners of the parent by the weighted average
number of ordinary shares in issue during the period.
The loss attributable to equity holders of the Company for the
purpose of calculating the fully diluted loss per share is
identical to that used for calculating the basic loss per share.
The exercise of share options would have the effect of reducing the
loss per share and is therefore anti-dilutive under the terms of
IAS 33 'Earnings per Share'.
Basic and diluted loss per share amounts are in respect of all
activities.
There were 193,500,000 share options in issue at 30 September
2019 (2018: 138,000,000) that are currently anti-dilutive and have
therefore been excluded from the calculations of the diluted loss
per share.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2019 2018 2019
Loss for the period attributable
to owners of the parent - GBP 150,884 213,761 513,033
Weighted average number of shares 1,983,988,174 1,885,238,174 1,933,125,160
Basic and diluted loss per share
- pence 0.01 0.01 0.03
----------------------------------- -------------- -------------- --------------
On 11 December 2019 the Group announced it had raised proceeds
of GBP301,333 via the placing of 75,333,333 new ordinary shares of
0.1p each at a gross 0.40p per share with investors, with no
commissions payable. The placing shares were admitted to trading on
AIM on 17 December 2019. The new shares issued would change the
weighted average number of shares in issue as shown above for the
period ended 30 September 2019, but they would not significantly
change the resulting loss per share calculations.
4. Share capital and Total Voting Rights
At 31 December 2019, the date of this announcement, the
Company's issued share capital comprises 2,059,321,507 ordinary
shares of 0.1 pence each, each with equal voting rights. The
Company does not hold any shares in treasury and therefore the
total number of ordinary shares and voting rights in the Company is
2,059,321,507.
The above figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or change to
their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
5. Cautionary statement
This document contains certain forward-looking statements with
respect to the financial condition, results and operations of the
business. These statements involve risk and uncertainty as they
relate to events and depend on circumstances that will incur in the
future. Nothing in this interim report should be construed as a
profit forecast.
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.
END
IR UARBRKUAUORA
(END) Dow Jones Newswires
December 31, 2019 02:13 ET (07:13 GMT)
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