TIDMPXS
RNS Number : 5466A
Provexis PLC
29 December 2017
29 December 2017 Provexis plc
UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER
2017
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
2017.
Key highlights
-- Total revenue for the period GBP124k (2016: GBP123k).
-- The Company and its commercial partner DSM have seen an
encouraging increase in brand awareness and customer interest in
Fruitflow(R) in recent months; the total projected annual sales
value of the prospective sales pipeline for Fruitflow(R) now stands
at a further new all-time high level.
-- Over 50 regional consumer healthcare brands containing
Fruitflow(R) now launched by DSM's customers, with further regional
brands launched through DSM's distributor channels. An increasing
number of further commercial projects have been initiated by DSM
with prospective customers, including some prospective customers
which are part of global businesses.
-- MOU for a research and collaboration agreement announced in
April 2017 for Fruitflow(R) between the Company and BY-HEALTH, a
GBP2bn listed Chinese dietary supplement business. Collaboration
will focus on BY-HEALTH's research programme into the development
of new products that contribute to cardiovascular health, with
BY-HEALTH planning to launch a number of Fruitflow(R) based
products in the Chinese market.
-- Patent application announced in December 2017 relating to the
use of Fruitflow(R) in protecting against the adverse effects of
air pollution on the body's cardiovascular system, with laboratory
work showing that Fruitflow(R) can reduce the platelet activation
caused by airborne particulate matter by approximately one
third.
-- Further encouraging progress from the Company's Fruitflow(R)
+ Omega-3 dietary supplement product which was launched in 2016.
Listing with Amazon secured in June 2017, further UK sales channel
opportunities are currently being progressed to include listings
with some major UK retailers; the Company is actively seeking to
launch the product online into wider international markets to
include North America.
-- Planned formulation and launch of a Fruitflow(R) + nitrates
dietary supplement product which will be supported by the Company's
strong patent position in this area.
-- Fruitflow(R) blood pressure study published in the
International Journal of Food Sciences and Nutrition, indicating
that Fruitflow(R) significantly lowered blood pressure in the study
subjects; encouraging blood pressure results are expected to have a
positive effect on current and future commercial negotiations for
Fruitflow(R).
-- Company raised GBP672k through a two stage placing in May and August 2017.
-- Underlying operating loss* GBP153k (2016: GBP128k),
reflecting increased patent costs during the period.
-- Cash GBP483k at 30 September 2017 (2016: GBP243k).
*before share based payments of GBP43k (2016: GBP13k), as set
out on the face of the Consolidated Statement of Comprehensive
Income
Provexis Executive Chairman Dawson Buck commented:
'We are pleased to be able to report on a period of significant
progress for the Company, to include:
-- The encouraging increase in brand awareness and customer
interest in Fruitflow which the Company and DSM have seen in recent
months, with the total projected annual sales value of the
prospective sales pipeline for Fruitflow now standing at a further
new all-time high level;
-- The strategic collaboration agreement for Fruitflow between
DSM and Chinese listed BY-HEALTH, and the related announcement by
the Company confirming that it had entered into an MOU with
BY-HEALTH for a research and collaboration agreement for
Fruitflow;
-- The planned launch by BY-HEALTH of some Fruitflow based products in the Chinese market;
-- The patent application announced in December 2017 relating to
the use of Fruitflow in protecting against the adverse effects of
air pollution on the body's cardiovascular system, with laboratory
work showing that Fruitflow can reduce the platelet activation
caused by airborne particulate matter by approximately one
third.
-- Encouraging progress with the Company's Fruitflow + Omega-3
dietary supplement product, which is expected to provide the
Company with an additional long term income and profit stream;
-- The planned formulation and launch of a Fruitflow + nitrates
dietary supplement product which will be supported by the Company's
strong patent position in this area;
-- The publication of a Fruitflow blood pressure study in the
International Journal of Food Sciences and Nutrition, indicating
that Fruitflow significantly lowered blood pressure in the study
subjects;
-- The strong support which the company has received from
investors in relation to subscriptions to raise further working
capital for the Company, to include a PrimaryBid.com element.
The Company expects that these strongly positive announcements
and initiatives will have a beneficial effect on the current and
future commercial prospects for Fruitflow. The Company is well
placed to maximise the commercial opportunities arising from these
developments for Fruitflow and the Provexis business, and remains
positive about the outlook for the business for the second half of
the year and beyond.'
This announcement contains inside information.
For further information please contact:
Provexis plc Tel: 07490 391888
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam / Camilla Hume
Chairman's statement
The Company has had a strong and 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 has
continued to develop the market actively for Fruitflow(R) in all
global markets. More than 50 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(R) in recent months,
with an increasing number of further commercial projects being
initiated with prospective customers, including some prospective
customers which are part of global businesses.
The total projected annual sales value of the prospective sales
pipeline for Fruitflow(R) has continued to increase, now standing
at a further new all-time high level.
Revenues for the period were GBP124k (2016: GBP123k), with the
prior period's revenue including amounts of GBP28k received for
marketing support (2017: GBPNil).
Revenues accruing to the Company for the period from its profit
sharing Alliance for Fruitflow(R) were GBP90k (2016: GBP88k).
The Company launched its Fruitflow(R) + Omega-3 dietary
supplement product in late June 2016 and in June 2017 the Company
secured a listing for the product with Amazon.co.uk. The product
achieved sales of GBP34k in the period (2016: GBP7k) and it has
seen further sales growth since the period end.
The underlying operating loss for the period was GBP153k (2016:
loss of GBP128k), reflecting increased patent costs arising during
the period.
MOU for a research and development collaboration with By-Health
Co., Ltd for Fruitflow(R)
In April 2017 the Company announced it had entered into a
memorandum of understanding with BY-HEALTH Co., Ltd, a GBP2bn
listed Chinese dietary supplement business, which is intended to
result in a research and collaboration agreement with BY-HEALTH for
Fruitflow(R).
The Company also confirmed separately that Provexis and DSM were
working with BY-HEALTH to support the planned launch of some
Fruitflow(R) based products in the Chinese market.
The proposed research and collaboration agreement between the
Company and BY-HEALTH is intended to focus on BY-HEALTH's research
programme into the development of new products that contribute to
cardiovascular health, particularly in the field of blood pressure
regulation, and it is intended to include a clinical trial which
will be conducted in China. It is envisaged that the Company,
BY-HEALTH and a third party Chinese research organisation will sign
the research and collaboration agreement in the first quarter of
2018, with the bulk of the research programme to be completed in
2018.
It is envisaged under the MOU that the Company and BY-HEALTH
will jointly provide primary funding for the research and
collaboration work which will include the assessment of a number of
different potential product formulations. Product formulations
which are covered under the Company's existing patents would
continue to be owned outright by the Company, and the Company would
retain proportional joint ownership of any new product formulations
developed as part of the project. It is envisaged that the Company
will provide scientific and technical support for Fruitflow(R) to
BY-HEALTH throughout the collaboration.
In November 2016 the Company announced that DSM had entered into
a strategic collaboration agreement for Fruitflow(R) with BY-HEALTH
focussing on the development of new products that contribute to
cardiovascular health, to include evaluation and testing procedures
to accord with Chinese technical and regulatory standards. The MOU
announced by the Company in April 2017 is in support of this
existing collaboration, whilst ensuring that the Company retains
and strengthens its intellectual property holdings.
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). China
is now the world's second-largest pharmaceuticals market, measured
by how much patients and the state spend on drugs. The Company
believes that Fruitflow(R) has the potential to play an important
role in the Chinese cardiovascular health market.
Patent application - Fruitflow(R) protects against adverse
effects of air pollution
In December 2017 the Company announced the filing of a patent
application relating to the use of Fruitflow(R) in protecting
against the adverse effects of air pollution on the body's
cardiovascular system.
Recent laboratory work has shown that Fruitflow(R) can reduce
the platelet activation caused by airborne particulate matter, such
as that from diesel emissions, by approximately one third. The
beneficial effects of this reduction can be observed in laboratory
models representing healthy subjects as well as in models
representing subjects with an underlying cardiovascular
problem.
The patent application describes 'a composition comprising a
water soluble tomato extract (Fruitflow(R)) for use in maintaining
cardiovascular health, lessening the risk of developing a
cardiovascular health problem, or reducing the likelihood of
worsening an existing cardiovascular health problem in a subject
who is exposed, or is at risk of exposure, to particulate air
pollution', and uses of Fruitflow(R) described in the patent
application include:
-- Maintaining healthy platelet function in the presence of air pollution;
-- Maintaining a healthy blood circulation and blood flow in the presence of air pollution;
-- Reducing the risk of an adverse cardiovascular condition,
such as atherosclerosis or thrombosis, in the presence of
particulate matter air pollution;
-- Reducing the severity of cardiovascular diseases when exposed to particulate matter; and
-- Reducing the risk of cardiovascular and respiratory illness in an air polluted environment.
The World Health Organization ('WHO') estimates that in 2012
around 1 in 9 deaths were attributed to exposure to air pollution,
making it the largest environmental risk factor for ill health,
with 92% of the world's population living in places where air
quality levels exceed WHO limits.
The patent filing means that DSM and the Company can use this
research now to assist with discussions with current and potential
customers. The Company expects that this patent application will
have a strongly beneficial effect on the current and future
commercial prospects for Fruitflow worldwide.
Fruitflow(R) + Omega-3 dietary supplement product
In June 2016 the Company announced the launch of its new
Fruitflow(R) + Omega-3 dietary supplement product, which is
available through the Company's new e-commerce website
www.fruitflowplus.com, the product also has a Facebook page at
www.facebook.com/FruitflowPlus.
In June 2017 the Company secured a listing for the product with
Amazon.co.uk. Further UK sales channel opportunities are currently
being progressed to include listings with some major UK retailers,
and the Company is actively seeking to launch the product online
into wider international markets to include North America.
Fruitflow(R) + Omega-3 is a two-in-one supplement in an easy to
take capsule, supporting healthy blood flow and normal heart
function, and it achieved sales of GBP34k in the period (2016:
GBP7k), with further sales growth seen since the period end. The
product achieved sales of GBP29k in the nine month period from its
launch to the end of the Company's financial year on 31 March
2017.
In May 2014 the US Food and Drug Administration issued some
guidance concerning the use of low dose Aspirin, stating that after
carefully examining scientific data from major studies it has
concluded 'the data do not support the use of aspirin as a
preventive medication by people who have not had a heart attack,
stroke or cardiovascular problems, a use that is called 'primary
prevention.' In such people, the benefit has not been established
but risks - such as dangerous bleeding into the brain or stomach -
are still present.' The Company believes that this guidance remains
a particularly strong opportunity for Fruitflow(R) in North
America.
The Company and DSM are committed to a number of ongoing
scientific and marketing initiatives for Fruitflow(R) and the
Company's Fruitflow(R) + Omega-3 capsules, seeking to extend the
reach of the existing science for Fruitflow(R) and give the
products further global exposure. A promotional broadcast event is
being planned to take place in January 2018.
Fruitflow(R) + nitrates dietary supplement product
In December 2013 British and international patent applications
were filed for the use of Fruitflow(R) in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise, seeking to enhance further the potential of the
technology in the sports nutrition sector. The patent was granted
by the UK IPO on 3 May 2017, and patents are being sought in
Europe, the US, China and ten other territories. The patent
application has now entered the national phase, with potential
patent protection out to December 2033.
The Company is keen to progress the formulation and launch of a
Fruitflow(R) + nitrates dietary supplement product which would be
supported by the Company's strong patent position in this area. The
product would have anti-inflammatory and circulation benefits for
athletes seeking to recover after exercise, properties which would
also be potentially beneficial to a wide range of other consumers
to include people suffering from the symptoms of basic ageing.
Fruitflow(R) and Blood Pressure - Collaboration with University
of Oslo
In November 2014 the Company signed a two stage collaboration
agreement with the University of Oslo seeking to undertake further
research into the relationship between Fruitflow(R) and blood
pressure regulation.
In December 2016 it was announced that the Company and the
University had completed the second stage of the collaboration
work, which had seen the parties conduct a small clinical trial in
Oslo by way of a proof of principle study. The study examined the
acute effects of different amounts of Fruitflow(R) in powder format
on parameters relating to blood pressure, such as systolic and
diastolic blood pressure, mean arterial pressure, pulse pressure
and heart rate. The trial subjects, who were healthy with no
underlying cardiovascular disease or other conditions likely to
affect blood pressure, received both placebo and Fruitflow(R)
supplements in a blinded crossover design.
Results from the pilot study indicated that a 150mg dose of
Fruitflow(R) in powder format significantly lowered the average
24-hour systolic blood pressure compared to placebo. When the
monitoring time was split into waking and sleeping periods, both
systolic and diastolic blood pressure were significantly lower
after 150mg Fruitflow(R) treatment than after placebo treatment
during the waking period; systolic pressure was also significantly
lower during the sleeping period.
In September 2017 the encouraging results from the blood
pressure collaboration were published in the International Journal
of Food Sciences and Nutrition.
The published study, titled 'Consumption of Fruitflow(R) lowers
blood pressure in pre-hypertensive males: a randomised, placebo
controlled, double blind, cross-over study' is expected to be a
strong opportunity to promote Fruitflow(R) further across
scientific, trade customer and consumer channels with a positive
effect on current and future commercial negotiations for
Fruitflow(R).
Intellectual property
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow(R) as part of the Alliance Agreement
with DSM. The Company is pursuing a strategy to strengthen the
breadth and duration of its patent coverage to maximise the
commercial returns that can be achieved from the technology. Trade
marks were originally registered in the larger global territories,
and new registrations are typically now sought in additional
territories in response to requests from current or prospective DSM
customers for Fruitflow(R).
In December 2013 British and international patent applications
were filed for the use of Fruitflow(R) in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise, and as indicated above the patent was granted by
the UK IPO on 3 May 2017. Patents are being sought in Europe, the
US, China and ten other territories, with the patent application
now having entered the national phase, with potential patent
protection out to December 2033.
The Company's patent application for Fruit Extracts, relating to
part of the production process for Fruitflow(R), was granted by the
European Patent Office on 11 January 2017, with the patent
application also now having entered the national phase across
larger global territories, with potential patent protection out to
November 2029.
The Company's patent application which was announced in December
2017, relating to the use of Fruitflow(R) in protecting against the
adverse effects of air pollution on the body's cardiovascular
system, brings potential patent protection out to 2036.
Crohn's disease intellectual property
The Group continues to maintain the Crohn's disease intellectual
property registered in Provexis (IBD) Limited, a company which is
75% owned by Provexis plc and 25% owned by The University of
Liverpool. The Group continues to investigate further options for
the Crohn's disease project, seeking to maximise its value.
Capital structure and funding
The Company is seeking to maximise the commercial returns that
can be achieved from its Fruitflow(R) 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(R)
revenues increase, but while the Company remains in a loss making
position it will need to raise working capital on occasions, and
the Company raised a gross GBP672k through a two stage placing in
May and August 2017.
The Company highly values its private investor base and it was
pleased to be able to provide private investors with an opportunity
to participate in the August 2017 placing at 0.50 pence per share
through the PrimaryBid.com platform; the placing received a strong
response from investors via the platform.
The funds raised from these placings will be used to provide the
Company with additional working capital to support its revenue
growth plans over the coming years, they have also considerably
strengthened the Group's balance sheet.
Outlook
We are pleased to be able to report on a period of significant
progress for the Company, to include:
-- The encouraging increase in brand awareness and customer
interest in Fruitflow(R) which the Company and DSM have seen in
recent months, with the total projected annual sales value of the
prospective sales pipeline for Fruitflow(R) now standing at a
further new all-time high level;
-- The strategic collaboration agreement for Fruitflow(R)
between DSM and Chinese listed BY-HEALTH, and the related
announcement by the Company confirming that it had entered into an
MOU with BY-HEALTH for a research and collaboration agreement for
Fruitflow(R);
-- The planned launch by BY-HEALTH of some Fruitflow(R) based products in the Chinese market;
-- The patent application announced in December 2017 relating to
the use of Fruitflow(R) in protecting against the adverse effects
of air pollution on the body's cardiovascular system, with
laboratory work showing that Fruitflow(R) can reduce the platelet
activation caused by airborne particulate matter by approximately
one third.
-- Encouraging progress with the Company's Fruitflow(R) +
Omega-3 dietary supplement product, which is expected to provide
the Company with an additional long term income and profit
stream;
-- The planned formulation and launch of a Fruitflow(R) +
nitrates dietary supplement product which will be supported by the
Company's strong patent position in this area;
-- The publication of a Fruitflow(R) blood pressure study in the
International Journal of Food Sciences and Nutrition, indicating
that Fruitflow(R) significantly lowered blood pressure in the study
subjects;
-- The strong support which the company has received from
investors in relation to subscriptions to raise further working
capital for the Company, to include a PrimaryBid.com element.
The Company expects that these strongly positive announcements
and initiatives will have a beneficial effect on the current and
future commercial prospects for Fruitflow(R). The Company is well
placed to maximise the commercial opportunities arising from these
developments for Fruitflow(R) and the Provexis business, and
remains positive about the outlook for the business for the second
half of the year and beyond.
Dawson Buck
Chairman
Consolidated statement of
comprehensive income Unaudited Unaudited Audited
Six months ended 30 September
2017 six months six months year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP GBP GBP
Notes
------------------------------- ------ ------------- ------------- ----------
Revenue 124,259 123,456 227,618
Cost of goods (10,374) (2,278) (9,533)
------------------------------- ------ ------------- ------------- ----------
Gross profit 113,885 121,178 218,085
Selling and distribution
costs (11,349) (2,929) (11,333)
Research and development
costs (76,285) (53,092) (187,163)
Administrative costs (221,687) (205,441) (446,010)
Underlying operating loss (152,700) (127,685) (382,287)
Share based payment charges (42,736) (12,599) (44,134)
------------------------------- ------ ------------- ------------- ----------
Loss from operations (195,436) (140,284) (426,421)
Finance income 209 667 890
Loss before taxation (195,227) (139,617) (425,531)
Taxation 6,660 6,120 14,445
Loss and total comprehensive
expense for the period (188,567) (133,497) (411,086)
--------------------------------------- ------------- ------------- ----------
Attributable to:
Owners of the parent (173,926) (119,161) (380,087)
Non-controlling interests (14,641) (14,336) (30,999)
Loss and total comprehensive
expense for the period (188,567) (133,497) (411,086)
--------------------------------------- ------------- ------------- ----------
Loss per share to owners
of the parent
Basic and diluted - pence 3 (0.01) (0.01) (0.02)
------------------------------- ------ ------------- ------------- ----------
Consolidated statement of
financial position Unaudited Unaudited Audited
30 September 2017 30 September 30 September 31 March
2017 2016 2017
GBP GBP GBP
----------------------------------- ------------- ------------- -------------
Assets
Current assets
Inventories 22,070 39,705 32,450
Trade and other receivables 92,256 102,836 86,976
Corporation tax asset 19,980 18,100 26,425
Cash and cash equivalents 482,942 243,178 12,349
Total current assets 617,248 403,819 158,200
----------------------------------- ------------- ------------- -------------
Total assets 617,248 403,819 158,200
----------------------------------- ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (72,698) (132,879) (133,314)
Total current liabilities (72,698) (132,879) (133,314)
----------------------------------- ------------- ------------- -------------
Net current assets 544,550 270,940 24,886
----------------------------------- ------------- ------------- -------------
Total liabilities (72,698) (132,879) (133,314)
----------------------------------- ------------- ------------- -------------
Total net assets 544,550 270,940 24,886
----------------------------------- ------------- ------------- -------------
Capital and reserves attributable
to
owners of the parent company
Share capital 1,885,238 1,750,818 1,750,818
Share premium reserve 17,179,546 16,648,471 16,648,471
Warrant reserve 26,200 26,200 26,200
Merger reserve 6,599,174 6,599,174 6,599,174
Retained earnings (24,693,179) (24,332,598) (24,561,989)
----------------------------------- ------------- ------------- -------------
996,979 692,065 462,674
Non-controlling interest (452,429) (421,125) (437,788)
Total equity 544,550 270,940 24,886
----------------------------------- ------------- ------------- -------------
Consolidated statement of cash
flows Unaudited Unaudited Audited
30 September 2017 six months six months year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP GBP GBP
Cash flows from operating activities
Loss after tax (188,567) (133,497) (411,086)
Adjustments for:
Profit on sale of fixed assets - - (3,000)
Finance income (209) (667) (890)
Taxation (6,660) (6,120) (14,445)
Share-based payment charge 42,736 12,599 44,134
Changes in inventories 10,380 (39,705) (32,450)
Changes in trade and other
receivables (5,075) (53,232) (37,540)
Changes in trade and other
payables (60,616) 19,132 19,567
Total cash outflow from operations (208,011) (201,490) (435,710)
-------------------------------------- ------------- ------------- ----------
Tax credits received 13,105 5,408 5,408
Total cash outflow from operating
activities (194,906) (196,082) (430,302)
-------------------------------------- ------------- ------------- ----------
Cash flow from investing activities
Proceeds from sale of fixed
assets - - 3,000
Interest received 4 624 1,015
Total cash inflow from investing
activities 4 624 4,015
-------------------------------------- ------------- ------------- ----------
Cash flow from financing activities
Proceeds from issue of share
capital 665,495 249,000 249,000
Total cash inflow from financing
activities 665,495 249,000 249,000
-------------------------------------- ------------- ------------- ----------
Net increase / (decrease) in
cash and cash equivalents 470,593 53,542 (177,287)
Opening cash and cash equivalents 12,349 189,636 189,636
Closing cash and cash equivalents 482,942 243,178 12,349
-------------------------------------- ------------- ------------- ----------
Consolidated
statement of
changes in Total
equity Share Share Warrant Merger Retained equity Non- Total
30 September attributable
2017 to owners controlling
capital premium reserve reserve earnings of interests equity
the
parent
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
At 31 March
2016 1,647,068 16,503,221 26,200 6,599,174 (24,226,036) 549,627 (406,789) 142,838
Share-based
charges - - - - 12,599 12,599 - 12,599
Issue of
shares
- placing
8 August 2016 93,333 130,667 - - - 224,000 - 224,000
Issue of
shares
- placing
22 September
2016 10,417 14,583 - - - 25,000 - 25,000
Total
comprehensive
expense for
the period - - - - (119,161) (119,161) (14,336) (133,497)
At 30
September
2016 1,750,818 16,648,471 26,200 6,599,174 (24,332,598) 692,065 (421,125) 270,940
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 31,535 31,535 - 31,535
Total
comprehensive
expense for
the period - - - - (260,926) (260,926) (16,663) (277,589)
At 31 March
2017 1,750,818 16,648,471 26,200 6,599,174 (24,561,989) 462,674 (437,788) 24,886
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 42,736 42,736 - 42,736
Issue of
shares
- placing
16 May 2017 70,000 280,000 - - - 350,000 - 350,000
Issue of
shares
- placing
4 August 2017 64,420 251,075 - - - 315,495 - 315,495
Total
comprehensive
expense for
the period - - - - (173,926) (173,926) (14,641) (188,567)
At 30
September
2017 1,885,238 17,179,546 26,200 6,599,174 (24,693,179) 996,979 (452,429) 544,550
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
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 Prospect House, 58 Queens Road,
Reading, Berkshire RG1 4RP, UK.
The main activities of the Group are those of developing and
licensing 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
Moore Stephens LLP pursuant to guidance issued by the Auditing
Practices Board.
The results for the year ended 31 March 2017 are not statutory
accounts. The statutory accounts for the last year ended 31 March
2017 were approved by the Board on 7 September 2017 and are filed
at Companies House. The report of the auditors on those accounts
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498 of the
Companies Act 2006.
The interim report for the six months ended 30 September 2017
can be downloaded from the Company's website www.provexis.com.
Further copies of the interim report and copies of the 2017 annual
report and accounts can be obtained by writing to the Company
Secretary, Provexis plc, Prospect House, 58 Queens Road, Reading,
Berkshire RG1 4RP, UK.
This announcement was approved by the Board of Provexis plc for
release on 29 December 2017.
Going concern
The Directors are of the opinion that at 29 December 2017, the
Group and Company's liquidity and capital resources are adequate to
deliver the current strategic objectives and 2018 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 2017, as
described in those annual financial statements.
2. Segmental reporting
The Directors have determined that only one operating segment
exists under the terms of International Financial Reporting
Standard 8 'Operating Segments', as the Group is organised and
operates as a single business unit.
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 151,617,620 share options in issue at 30 September
2017 (2016: 118,617,620) and 10,000,000 warrants (2016: 10,000,000)
in issue 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
2017 2016 2017
Loss for the period attributable
to owners of the parent
- GBP 173,926 119,161 380,087
Weighted average number
of shares 1,823,287,791 1,674,554,508 1,712,581,870
Basic and diluted loss per
share - pence 0.01 0.01 0.02
---------------------------------- -------------- -------------- --------------
There have been no transactions involving ordinary shares
between the reporting date and the date of approval of these
financial statements which would significantly change the earnings
per share calculations shown above.
4. Share capital
On 10 May 2017 the Group announced it had raised gross proceeds
of GBP350,000 via the placing of 70,000,000 new ordinary shares of
0.1p each at a gross 0.50p per share with investors. The placing
shares were admitted to AIM on 16 May 2017.
On 31 July 2017 the Group announced it had raised gross proceeds
of GBP322,100 via the placing of 64,420,000 new ordinary shares of
0.1p each at a gross 0.50p per share with investors. The placing
shares were admitted to AIM on 4 August 2017.
At 29 December 2017, the date of this announcement, the
Company's issued share capital comprises 1,885,238,174 ordinary
shares with voting rights. The Company does not hold any shares in
treasury.
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 company news service from the London Stock Exchange
END
IR PGGCUPUPMUMB
(END) Dow Jones Newswires
December 29, 2017 02:09 ET (07:09 GMT)
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