TIDMEDEN
RNS Number : 0778O
Eden Research plc
29 September 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
29 September 2023
Eden Research plc
("Eden" or "the Company")
Half Yearly Report
Eden Research plc (AIM: EDEN), the AIM-quoted company focused on
sustainable biopesticides and plastic-free formulation technology
for use in the global crop protection, animal health and consumer
products industries, announces its interim results for the six
months ended 30 June 2023.
Financial highlights
-- Revenue for the period of GBP1.14m (H1 2022: GBP1.04m)
-- Product sales of GBP1.09m (H1 2021: GBP1.01m)
-- Operating loss for the period of GBP1.2m (H1 2022: GBP1.3m)
-- Adjusted loss (excluding a non-cash intangible assets
impairment of GBP5.0m*) for the period of GBP0.9m, loss of GBP5.9m
including impairment (H1 2022: GBP1.0m, impairment of GBPnil)
-- Cash and cash equivalents of GBP0.5m (H1 2022: GBP0.9m)
-- Cash and cash equivalents at 31 August 2023 of GBP1.73m
following a tax refund and proceeds from the unconditional
placing
-- On track to meet 2023 market expectations for product sales revenue and EBITDA
*See note 9 for further details.
Business highlights
Expanding regulatory approvals in key territories, including the
US, new commercial agreement, and new product areas
-- First commercial order received for Ecovelex(R) , Eden's new
seed treatment product (August 2023)
-- Materially increased Eden's global addressable market with
label extensions and new regulatory approvals, most notably the
addition of the US following various state approvals
-- Authorisation for Cedroz(TM) received in the key state of
California with Mevalone(R) authorisation anticipated in due
course
-- Eden's first 'non-professional' (home garden) uses for 3logy(R) granted in Italy
-- Mevalone(R) received regulatory authorisation in Poland,
which is acting on behalf of the EU Central Zone, thereby paving
the way to central EU approvals
-- Authorisation for Mevalone(R) (Novellus) received in New Zealand
-- Submission made to the EU and UK authorities for Eden's seed
treatment product, Ecovelex(R) , which was developed with Corteva
Agriscience
-- Steps to expand the use of Mevalone(R) in France to include
powdery and downy mildew are well underway
-- Return to commercial production of Cedroz Ô following
previous manufacturing issues. Continue to actively monitor
customer feedback
-- Use of Cedroz Ô expanded to include the control of wire worm
in potatoes through the granting of an emergency use approval in
Italy
-- New distribution agreement signed with Anasac for Mevalone(R) in Colombia
-- 140 field trials run by potential distribution partners in
2023, following significant interest in the evaluation of Eden's
developmental insecticide
Corporate highlights
Strengthening of the Company's financial position and team to
allow the business to grow apace
-- Successful firm Capital Raising of GBP1.1 million, Minimum
Conditional Capital Raising of GBP7.9 million and Retail Offer of
GBP0.4 million, all before expenses (Announced in July 2023)
-- Strengthening of the Commercial Team underway
Lykele van der Broek, Chairman of Eden Research, commented:
"It was with great pleasure that in May this year we were
finally able to announce, in conjunction with our partner Corteva
Agriscience ("Corteva"), the development of our new bird repellent,
seed treatment product Ecovelex(R) .
Ecovelex(R) is the result of a three-year collaboration with
Corteva with significant effort, work and determination from
everyone involved in the project and is a direct result of the
fundraise that took place in March 2020, without which this would
not have been possible.
Ecovelex(R) represents Eden's first commercial activity in
broad-acre crops and seed treatments and highlights the versatility
that the Company's technologies and products can bring to the
market. The initial commercial opportunity on maize in Europe is
significant by itself, but there are numerous additional others
that we can now look to exploit using the same, proven
platform.
The first half of the year also saw several important regulatory
approvals come through, such as Mevalone(R) in New Zealand, where
botrytis is prevalent and Poland, off the back of which we expect
to receive approvals in the other central EU zone countries in
fairly short order, and state approvals in the US for both
Mevalone(R) and Cedroz Ô .
Each of these approvals unlocks our route to product sales and
increases our addressable market.
At the end of July, the Company announced that it had completed
a firm placing of GBP1.1m and conditional placing of at least
GBP7.9m (up to a maximum of GBP9.4m), both before expenses.
The Board of Eden considered very carefully the right approach
to ensure the future viability and growth prospects of the business
and it was concluded that, with the much-appreciated support from
institutional and retail shareholders, strengthening the Company's
financial position through a fundraise was the right course of
action.
From this new position of strength, we can now expeditiously
develop and commercialise our products which, the Board believes,
will, on balance, substantially benefit the Company and its
shareholders."
For further information contact:
Eden Research plc www.edenresearch.com
Sean Smith
Alex Abrey 01285 359 555
Cavendish Securities plc (Nominated
advisor and broker)
Giles Balleny / George Lawson (corporate
finance)
Michael Johnson (sales) 020 7397 1961
Hawthorn Advisors (Financial PR)
Simon Woods eden@hawthornadvisors.com
Felix Meston
Chief Executive Officer's Statement
At Eden Research, we aim to create innovative and sustainable
crop protection solutions to empower farmers worldwide to tackle
destructive pest infestations and plant diseases effectively and
without causing harm to the environment. The first half of 2023 has
seen further progress towards these aims. With our three
plant-derived active ingredients and proprietary microencapsulation
technology, Sustaine (R) , we are making good progress with our
efforts to develop a portfolio of products to address a multitude
of challenges that go beyond our initial focus on treating
grapevine fungal diseases.
Demonstrating development excellence in seed treatments
One such example is our recently unveiled, new seed treatment,
Ecovelex (R) . Without doubt, this has been the highlight of the
first half of the year and is the result of more than three years
of intensive development alongside our partner Corteva Agriscience.
In its initial use case, Ecovelex (R) will be deployed as a seed
coating for maize seeds, acting as a repellent against bird
infestation and protecting farmers' crop yield at the earliest
point in the growth cycle.
Ecovelex (R) represents an alternative to currently available
bird repellent seed treatments widely used across the arable
farming community. One of the most popular seed treatments,
containing conventional synthetic active ingredients, is likely to
be removed from the market in the EU without there being any other
bird repellent available in the shorter term. We see not only a
significant opportunity for Ecovelex (R) to act as a replacement in
this regard, but are also proud that we can offer the maize-growing
community a method to protect their seeds using naturally occurring
compounds that help protect soil and bird health. Furthermore,
extensive field trials have demonstrated that our product is
equally effective when compared with the incumbent product
currently used by farmers.
Alongside announcing Ecovelex (R) in May, we also indicated to
the market that we have submitted a dossier and application to the
Austrian regulator, who will act as the interzonal rapporteur
member state ("RMS") on behalf of the EU. Approval by the RMS will
provide the key to entry into the rest of the European Union single
market, subject to each state requesting further information before
local authorisations are granted. In July, we also announced that
we had submitted the equivalent application to the Chemicals
Regulation Division in the UK for authorised use in our home
country. In both these instances, it is expected that review and
authorisation of Ecovelex (R) will take between 18 and 24 months,
although it should be noted that the pace of regulatory actions
lies solely in the control of the relevant authorities.
During this time, the Eden management and regulatory teams will
work closely with each regulator to ensure they have all the
necessary tools and information required to grant authority as soon
as possible. We are also exploring other means to bring Ecovelex
(R) to the market sooner, such as via emergency authorisations
which could see the product being used as early as the 2024 growing
season. However, such authorisations are not guaranteed, and we are
working to ensure that we obtain full authorisation in a timely
manner.
Widening geographic presence, growing the label
A large part of our commercial progress this period has been
linked to our two existing products, Mevalone (R) and Cedroz(TM).
Here, our strategy has been to introduce these biopesticides to new
markets and expand the list of allowed uses, known as 'the label',
beyond existing uses.
Following receipt of our landmark Environmental Protection
Agency (EPA) approval in the US at a national level for both
Mevalone (R) and Cedroz Ô in September of last year, we are
delighted to have been able to secure individual state approvals in
17 US states, as announced in March and May of this year. These
include the lucrative markets of Florida and California (Cedroz
only), where high-value fruit and vegetables are grown. Not only
are these attractive markets in terms of production, but also with
respect to their favoured use of natural pesticides and other
agricultural inputs over conventional alternatives. We now look
forward to receiving approval for Mevalone in California where we
will be predominantly focused on the wine market in high profile
regions such as Napa Valley, Sonoma, Monterey, and Santa
Barbara.
In April, we were pleased to have been granted approval for
Mevalone (R) in Poland for use on wine and table grapes, as well as
on apples. Poland is the EU's largest producer of apples,
accounting for a total annual production of approximately 2.5
million tons. As with the case in a number of other countries, the
Mevalone approval extends to pre-harvest application for
post-harvest effect given its exemption from maximum residue
levels, thereby helping to prevent food waste in the very early
stages of the supply chain. More importantly, this one approval
represents a significant landmark in that it provides the
opportunity for entry into Central Europe where we can ultimately
access the nearby markets of Austria, Hungary, and Germany, where a
high concentration of wine production is found. Efforts are being
made by our regulatory team to actively pursue these opportunities
through eventual regulatory approval in each member state.
Elsewhere, we continue to build our geographic presence in the
Southern Hemisphere with regulatory approval for Mevalone in New
Zealand, where the product is marketed as a Novellus(R). This
builds on our existing presence in Australia where we are once
again targeting another significant wine region. New Zealand's damp
conditions and fluctuating temperatures across its wine growing
areas provides an ideal environment for Botrytis cinerea to thrive
and we forecast this will create strong demand for our product,
particularly for use on its most famous grape varietal, Sauvignon
Blanc, which is highly susceptible to bunch rot given how close the
berries grow to one another.
Eden has also made its first move in South America having
appointed Anasac as its exclusive distribution partner for Mevalone
(R) in Colombia. Here, Eden is pursuing the registration of
Mevalone (R) on ornamental crops such as cut flowers to prevent and
cure outbreaks of Botrytis cinerea. Colombia is one of the world's
largest cut flower exporters with the United States acting as the
primary export market. The US imports over $1.35 billion of cut
flowers annually. Building on our presence in Mexico, where we
already have regulatory approval and are selling product, and in
Colombia, where we expect regulatory approval to be granted in due
course, we are intent on widening our influence in Latin America,
working alongside our regional partners.
Closer to home, we have secured our first domestic
(non-professional use) approval with the authorisation of Mevalone
(R) for home-use in Italy. This will afford Italian gardeners the
same access to sustainable biopesticides as farmers and provide
them with a biocontrol tool to prevent and treat several
destructive plant pathogens such as Botrytis cinerea and powdery
mildew.
Building robust cashflow
While much of our effort is directed at ensuring that we are
well-placed geographically and targeting the right pests and
diseases, our partnerships form an important part of our commercial
success. We are proud to have formed close ties with some of the
industry's largest and high-profile leaders such as Corteva,
Sipcam, SumiAgro and others, who play a key role in distributing
our pesticides across the globe.
We have also benefitted from sales made in the United States
following EPA approval obtained last year, and the various
approvals across individual states obtained subsequently.
As has been the case in recent years, the 2023 growing season
has not been without its challenges. In our primary market of
Southern Europe, we have seen severe drought and high temperatures
which can adversely affect demand for certain fungicides,
particularly those that target botrytis. We remain cautiously
optimistic that more favourable growing conditions will return
toward the end of the season thereby helping to ensure appropriate
inventory levels and a reasonable post-season restocking
period.
Across the interim period, Eden reported revenues of GBP1.14
million, a marginal increase on the previous H1 2022 period of
GBP1.04 million. Product sales have also marginally increased to
GBP1.09 million from GBP1.01 million in H1 of last year.
Earnings remained consistent with H1 2022 with an overall loss
before tax of GBP0.9 million compared with GBP1.0 million,
(excluding a non-cash intangible assets impairment during the
period of GBP5.0 million). Including impairment, the total H1 2023
loss after tax was GBP5.9 million. See note 9 for details of the
impairment.
As at 30 June 2023, Eden's cash and cash equivalents balance
stood at GBP0.5 million. Post period end, we have seen cash and
cash equivalents increase to GBP1.73m as at 31 August 2023
following a tax refund and proceeds from the unconditional
placing.
As the 2023 harvest season approaches and we near a key
pesticide application period for botryticides, we remain on track
to meet market expectations for product sales.
Strengthening the financial position
In Q3 2023, Eden announced a fundraising round by means of firm
and conditional placings, as well as a retail offer to existing
shareholders. In total, once the fundraising is complete, which is
expected in the coming weeks, we expect to have raised a total of
GBP10.0 million before expenses. This fundraise not only provides
us with additional capital to commercialise further existing
products and fund new areas of the business, but it also serves to
strengthen our balance sheet and provide greater flexibility during
this high-growth period.
Firm placing and rights issue
The use of proceeds raised from the firm placing and retail
offer will primarily be allocated towards the funding of materials
to build up stocks for our new seed treatment. We will also be
looking to grow the Ecovelex (R) label through further lab
screening and field trials, and formulation development, as well as
expand our territorial presence in new regions such as Latin
America and South-East Asia. Lastly, we intend to bolster our
commercial team with the appointment of a new commercial director
and a market development and product manager.
Conditional placing
The net proceeds from the conditional capital raise will be used
towards new product development, further development of our
insecticides as partnering discussions progress, and as additional
working capital towards Ecovelex's (R) label expansion. These
proceeds will also be used to establish a US-based team to help
support the Company's growth across the US and North America. In
the announcement made by the Company on 28 July 2023 regarding its
Capital Raising, it noted that the Conditional Placing was subject,
inter alia, to (i) the approval of the Resolutions at the General
Meeting, (ii) the Advanced Assurance being obtained from HMRC,
(iii) the Capital Reduction becoming effective and (iv) Second
Admission.
The first three conditions have now been met and, as such, the
Company expects to complete the Second Admission and Conditional
Placing shortly.
As at 31 August 2023, Eden's post-period cash and cash
equivalents balance stood at GBP1.73 million, following a tax
refund and receipt of capital raised at the recent unconditional
placing and rights issue.
There are currently no near-term plans to pay a dividend.
However, the Board continues to review the Company's dividend
policy.
Following an independent impairment review, the Board agreed to
write down the value of its intangible assets by GBP5.0m. For
further details, please see note 9.
Extending our product line
We have made great advancements with our product development
pipeline with the limited working capital available to us before
the post-period fundraise. The second notable product that we are
working to bring to market next is our insecticide, the development
of which was funded by the capital we raised three years ago. Our
lead product candidate targets key pests that attack plants such as
spider mites, whitefly, aphids, and thrips. Extensive greenhouse
and field trials by Eden and its partners have been conducted
throughout the past two years, and the results have so far proven
to be promising with good efficacy and consistency against our
targeted pests. We intend to launch this product as soon as
practicable, with regulatory applications planned for submission in
late 2023 or early 2024, subject to the outcome of ongoing trials
and data analysis. Pending a positive and prompt regulatory
decision, we estimate product launch and first sales as early as
2024/25 in the US and 2025/26 in the EU.
We are continually assessing applicable use of our biopesticide
products across crops and pests outside our existing remits such as
cannabis, black sigatoka, potato blight and wireworm. In each case,
initial evaluations have been conducted and have produced
encouraging results. Eden is also exploring the use of its
proprietary technologies in the consumer products and animal health
industries. While we have long indicated the possibility of
expanding our scope in this regard, the consumer and animal health
segments are still considered non-core to our business for the time
being, although we still maintain good relationships and active
discussions with potential partners.
Reflecting on the half-year period, I am very proud of what we
have been able to achieve in such a short space of time. These
milestones serve as a reminder of the company's potential and, with
the additional resources expected to come at our disposal, we are
committed to ensuring we can continue to deliver on our growth
objectives. I'd like to take this opportunity to thank our
shareholders, our team and the Board for their support and
efforts.
Sean Smith
Chief Executive Officer
28 September 2023
Eden Research plc - Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2023
Six
Six months Year ended
months ended 31 December
ended 30 30 June 2022
June 2023 2022 GBP GBP
GBP unaudited unaudited audited
Revenue (note 18) 1,142,371 1,040,036 1,827,171
--------------- ------------ -------------
Cost of sales (710,337) (626,342) (997,011)
--------------- ------------ -------------
Gross profit 432,034 413,694 830,160
--------------- ------------ -------------
Administrative expenses (1,250,541) (1,295,770) (2,749,240)
Amortisation of intangible assets (264,557) (246,325) (495,818)
Share based payments (note 17) (119,083) (152,135) (152,135)
--------------- ------------ -------------
Operating loss (1,202,147) (1,280,536) (2,567,033)
181 28 192
Investment revenues (9,539) (9,868) (22,046)
Finance costs 11,857 (33,351) (52,736)
Foreign exchange gains/(losses) (4,968,529) - -
Impairment of intangible assets
(note 9)
Share of loss of equity accounted
investee, net of tax (note 10) (25,111) (9,849) (31,444)
--------------- ------------ -------------
Loss before taxation (6,193,288) (1,333,576) (2,567,595)
Income tax income 317,230 345,424 323,716
--------------- ------------ -------------
Loss for the financial period (5,876,058) (988,152) (2,243,879)
Attributable to:
Equity holder of the company (5,887,194) (997,630) (2,237,262)
Non-controlling interest 11,136 9,478 (6,617)
--------------- ------------ -------------
Total Comprehensive Income (5,876,058) (988,152) (2,243,879)
Earnings per share (note 7)
Basic (pence per share) (1.54) (0.26) (0.59)
Eden Research plc - Consolidated Statement of Financial Position
as at 30 June 2023
30 June
2023 30 June 2022 31 Dec 2022
GBP GBP GBP
unaudited unaudited audited
NON-CURRENT ASSETS
Intangible assets (note 9) 3,641,058 8,330,644 8,447,226
Property, plant & equipment
(note 12) 167,175 222,712 198,786
Right of Use assets (note 13) 265,141 339,179 332,814
Investments in associate (note
10) 305,133 351,839 330,244
4,378,507 9,244,374 9,309,070
CURRENT ASSETS
Inventories (note 14) 651,394 459,424 625,458
Trade and other receivables
(note 15) 930,000 1,564,652 658,866
Taxation 640,946 918,009 323,716
Cash and cash equivalents 492,766 1,852,019 1,994,472
2,715,106 4,794,104 3,602,512
CURRENT LIABILITIES
Trade and other payables (note
16) 1,818,582 1,638,945 1,813,341
Lease liabilities 138,808 114,478 139,547
1,957,390 1,753,423 1,952,888
NET CURRENT ASSETS 757,716 3,040,681 1,649,624
NON-CURRENT LIABILITIES
Lease liabilities 147,780 247,742 215,776
147,780 247,742 215,776
NET ASSETS 4,988,443 12,037,313 10,742,918
EQUITY
Called up share capital 3,811,089 3,803,402 3,808,589
Share premium account 39,308,529 39,308,529 39,308,529
Warrant reserve 640,741 769,773 701,065
Merger reserve (note 19) - 10,209,673 10,209,673
Retained earnings (38,807,554) (42,094,661) (43,309,440)
Non-controlling interest 35,638 40,597 24,502
TOTAL EQUITY 4,988,443 12,037,313 10,742,918
Eden Research plc - Consolidated Statement of Changes in Equity
as at 30 June 2023
Non-control-ling
interest
Share Share Merger Warrant Retained
capital premium reserve reserve earnings Total
GBP GBP GBP GBP GBP GBP GBP
Six months
ended 30 June
2023
Balance at
1 January 2023
(audited) 3,808,589 39,308,529 10,209,673 701,065 (43,309,440) 24,502 10,742,918
(Loss)
/profit and
total
comprehensive
income - - - - (5,887,194) 11,136 (5,876,058)
Transactions
with owners
- Transfer
of merger reserve - - (10,209,673) - 10,209,673 - -
- Options granted - - - 119,083 - - 119,083
- Options
exercised/
lapsed 2,500 - - (179,407) 179,407 - 2,500
------------ ----------- --------------- ---------- ------------- ----------------- ------------
Transactions
with owners - - (10,209,673) (60,324) 10,389,080 - 2,500
------------ ----------- --------------- ---------- ------------- ----------------- ------------
Balance at
30 June 2023
(unaudited) 3,811,089 39,308,529 - 640,741 (38,807,554) 35,638 4,988,443
------------ ----------- --------------- ---------- ------------- ----------------- ------------
Six months
ended 30 June
2022
Balance at 1
January 2022 3,803,402 39,308,529 10,209,673 937,505 (41,460,753) 31,119 12,829,475
(audited)
(Loss)/profit
and total
comprehensive
income - - - - (997,630) 9,478 (988,152)
Transactions
with owners
- Xinova write
off (note 17) - - - - 43,855 - 43,855
- Options granted - - - 152,135 - - 152,135
- Options
exercised/lapsed - - - (319,867) 319,867 - -
------------ ----------- --------------- ---------- ------------- ----------------- ------------
Transactions
with owners - - - (167,732) 363,722 - 195,990
------------ ----------- --------------- ---------- ------------- ----------------- ------------
Balance at 30
June 2022
(unaudited) 3,803,402 39,308,529 10,209,673 769,773 (42,094,661) 40,597 12,037,313
------------ ----------- --------------- ---------- ------------- ----------------- ------------
Eden Research plc - Consolidated Statement of cash flows for the
six months ended 30 June 2023
Six months Six months
Year ended
ended ended 31
30 June December
30 June 2023 2022 2022
GBP GBP GBP
unaudited unaudited audited
Cash flows from operating
activities
Cash outflow from operations
(note 8) (1,018,716) (1,528,470) (1,586,531)
Interest on lease liabilities - (9,868) -
R&D tax credit received - 330,660 903,244
Net cash used in operating
activities ( 1,018,716) (1,207,678) (683,287)
Cash flows from investing
activities
Development of intangible
assets (426,918) (657,189) (1,023,262)
Purchase of property, plant
and equipment (1,875) (21,790) (30,929)
Interest received 181 28 192
------------- ------------ ------------
Net cash used in investing
activities (428,612) (678,951) (1,053,999)
------------- ------------ ------------
Cash flows from financing
activities
Issue of shares 2,500 - -
Payment of lease liabilities (59,196) (57,370) (128,301)
Interest on lease liabilities (9,539) - (22,046)
Net cash used in financing
activities (66,235) (57,370) (150,347)
------------- ------------ ------------
Decrease in cash and cash
equivalents (1,513,563) (1,943,999) (1,887,633)
Cash and cash equivalents
at
beginning of period 1,994,472 3,829,369 3,829,369
Effect of exchange rate
fluctuations on cash held 11,857 (33,351) 52,736
------------- ------------ ------------
Cash and cash equivalents
at
end of period 492,766 1,852,019 1,994,472
============= ============ ============
Cash and cash equivalents comprise bank account balances.
Notes to the Interim Results
1. Reporting Entity
Eden Research plc is a public limited company incorporated in
the United Kingdom under the Companies Act 2006. The Company is
domiciled in the United Kingdom and is quoted on the Alternative
Investment Market (AIM).
These condensed consolidated interim financial statements
('Interims') as at and for the six months ended 30 June 2023
comprise the Company and its Subsidiaries (together referred to as
'the Group'). The principal activities of the Group are the
development and commercialisation of encapsulation, terpenes and
environmentally friendly technologies to provide naturally
occurring solutions for the global agrochemicals, animal health,
and consumer product industries.
2. Basis of Preparation
These Interims have been prepared in accordance with IAS 34
'Interim Financial Reporting' and should be read in conjunction
with the Group's last annual consolidated financial statements as
at and for the year ended 31 December 2022 which were approved by
the Board of Directors on 4 May 2023 and have been delivered to the
Registrar of Companies. The report of the auditors on those
financial statements was unqualified, did not contain an emphasis
of matter paragraph and did not contain any statement under section
498 of the Companies Act 2006.
The Interims do not include all of the information required for
a complete set of financial statements prepared under UK-adopted
International Accounting Standards and do not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006. However, selected explanatory notes are included to explain
events and transactions that are significant to an understanding of
the changes in the Group's financial position and performance since
the last annual financial statements.
Comparative information in the Interims as at and for the year
ended 31 December 2022 has been taken from the published audited
financial statements as at and for the year ended 31 December 2022.
All other periods presented are unaudited.
The Board of Directors and the Audit Committee approved the
interims on 28 September 2023.
3. Going Concern
The directors have, at the time of approving the Interims, a
reasonable expectation that the Group has adequate resources to
continue in operational existence for at least 12 months from the
approval of the financial statements. Thus, the Interim financial
statements have been prepared on a going concern basis which
contemplates the realisation of assets and the settlement of
liabilities in the ordinary course of business.
The Group has reported a loss for the first half of the year
after taxation of GBP5,876,058 (H1 2022: GBP988,152). Net current
assets at that date amounted to GBP 757,716 (H1 2022:
GBP3,040,681). Cash at that date amounted to GBP 492,766 (H1 2021:
GBP1,852,019). The Group is reliant on its current cash balance to
fund its working capital.
The Directors have prepared budgets and projected cash flow
forecasts, based on forecast sales provided by Eden's distributors
where available, for a period of at least 12 months from the date
of approval of the Interims and they consider that the Company will
be able to operate with the cash resources that are available to it
for this period.
The forecasts adopted include only revenue derived from existing
contracts. They do not include potential upside from on-going
discussions and negotiations with other parties not yet contracted,
as well as other 'blue sky' opportunities.
In addition, the Group has relatively low fixed running costs
and, while mitigating actions are not forecast to be required to
support the going concern basis, the Directors have previously
demonstrated its ability to postpone certain other costs, such as
Research and Development expenditure, in the event of unforeseen
cash constraints and are willing and able to delay costs in the
forecast period should the need arise.
Furthermore, in July 2023, Eden completed a firm Capital Raising
of GBP1.1 million and Retail Offer of GBP0.4 million (July 2023)
together with a Conditional Capital Raising of a minimum of GBP7.9
million, all before expenses.
Consequently, the directors are confident that the Company will
have sufficient funds to continue to meet its liabilities as they
fall due for at least 12 months from the date of approval of the
half year report and therefore have prepared the half year report
on a going concern basis.
4. Adoption of new and revised standards and changes in accounting policies
These condensed consolidated Interims have been prepared in
accordance with the accounting policies adopted in the last annual
financial statements for the year to 31 December 2022, except for
the application of the following standard at 1 January 2023:
-- Amendments to IFRS 3, IAS 16, IAS 37 and the 2018-2020 IFRS Annual Improvements cycle
The adoption of these new standards would not result in any
material changes to the Interims.
The accounting policies have been applied consistently for the
purposes of preparation of these condensed Interims.
5. Principal risks and uncertainties
The Company's prime risk is the on-going commercialisation of
its intellectual property, which involves testing of the Company's
products, obtaining regulatory approvals and reaching a
commercially beneficial arrangement for each product to be taken to
market. This is measured by comparing actual results with forecasts
that have been agreed by the Company's Board of Directors.
The Company's credit risk is primarily attributable to its trade
receivables. Credit risk is managed by running credit checks on
customers and by monitoring payments against contractual
agreements.
The Company monitors cash flow as part of its day-to-day control
procedures. The Board considers cash flow projections at its
meetings and ensures that the Company has sufficient cash resources
to meet its on-going cash flow requirements.
Due to the nature of the business, there is inherent risk of
infringement of Eden's intellectual property rights by third
parties. The risk of infringement is managed by taking (and acting
on) the relevant legal advice as and when required.
There is also inherent uncertainty surrounding the regulatory
approval of products in terms of both timing and outcome. This risk
is managed by retaining appropriately experienced staff and
contracting with expert consultants as needed.
6. Ukraine
Eden does not currently have any business activities in Russia
or Ukraine and, as such, has not experienced, nor does it expect,
any direct impact on its business.
The knock-on effect of the conflict on other countries is still
being understood, though we do not envisage significant disruption
to the current business in the short term.
7. Earnings per share
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2022 2022
2023 Pence unaudited Pence
Pence unaudited audited
(Loss)/profit per ordinary share
(pence) - basic (1.54) (0.26) (0.59)
================= ================= =============
Loss per share - basic has been calculated on the net basis on
the loss after tax of GBP5,876,058 (30 June 2022: GBP 988,152 , 31
December 2022: GBP2,243,879) using the weighted average number of
ordinary shares in issue of 380,912,474 (30 June 2022: 380,340,229,
31 December 2022: 380,549,518).
Diluted earnings per share has not been presented as the Group
is currently loss making and as a result, any additional equity
instruments have the effect of being anti-dilutive.
8. Reconciliation of loss before income tax to cash used by operations
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP GBP GBP
unaudited unaudited audited
(Loss)/profit after tax (5,876,058) (988,152) (2,243,879)
Adjustments for:
Share of associate's losses 25,111 9,849 31,444
Amortisation charges 264,557 246,325 495,818
Impairment of intangible assets 4,968,529 - -
Share based payment charge 119,083 152,135 152,135
Xinova loan balance written
off - 43,855 43,855
Depreciation of property,
plant and equipment and right
of use assets 101,159 88,159 191,622
Finance costs - 9,868 22,046
Foreign exchange currency
losses/(gains) (11,857) 33,351 (74,782)
Finance income (181) (28) (192)
Tax credit (317,230) (345,424) (323,716)
Inventory provision - - 76,250
Doubtful debt provision - - 107,188
Movements in working capital:
(Increase)/decrease in trade
and other receivables (271,134) (678,066) 125,720
(Decrease)/ Increase in trade
and other payables 5,241 (162,269) (9,683)
Decrease/(increase) in inventory (25,936) 61,927 (180,357)
------------ ------------ --------------
Cash used by operations (1,018,716) (1,528,470) (1,586,531)
============ ============ ==============
9. Intangible assets
Intellectual Licences Development Total
property and trademarks Costs
GBP GBP GBP GBP
COST
At 1 January 2022 9,407,686 456,684 8,150,140 18,014,510
Additions - - 657,189 657,189
------------- ---------------- ------------ -----------
At 30 June 2022 9,407,686 456,684 8,807,329 18,671,699
Additions 99,371 - 266,702 366,073
------------- ---------------- ------------ -----------
At 31 December
2022 9,507,057 456,684 9,074,031 19,037,772
Additions - - 426,918 426,918
------------- ---------------- ------------ -----------
At 30 June 2023 9,507,057 456,684 9,500,949 19,464,690
============= ================ ============ ===========
AMORTISATION
At 1 January 2022 6,936,629 448,896 2,709,205 10,094,730
Charge for the
period 105,174 648 140,503 246,325
------------- ---------------- ------------ -----------
At 30 June 2022 7,041,803 449,544 2,849,708 10,341,055
Charge for the
period 105,172 648 143,671 249,491
------------- ---------------- ------------ -----------
At 31 December
2022 7,146,975 450,192 2,993,379 10,590,546
Charge for the
period 132,588 780 131,189 264,557
Impairment 1,705,122 2,545 3,260,862 4,968,529
------------- ---------------- ------------ -----------
At 30 June 2023 8,984,685 453,517 6,385,430 15,825,242
============= ================ ============ ===========
CARRYING AMOUNT
At 30 June 2023 522,372 3,167 3,115,519 3,641,058
============= ================ ============ ===========
At 31 December
2022 2,360,082 6,492 6,080,652 8,447,226
============= ================ ============ ===========
At 30 June 2022 2,365,883 7,140 5,957,621 8,330,644
============= ================ ============ ===========
Background
The impairment review that was undertaken as part of the
Company's 2022 accounts preparation resulted in headroom over the
carrying value of only GBP0.9m (down from GBP8.3m in 2021), a
rather small margin given intangible assets amounted to GBP8.4m at
that time.
Given the marginal headroom and general downward trend, the
management team and Audit Committee agreed it was appropriate to
undertake a further impairment review of the Company's intangible
assets, as part of the preparation of the Company's 2023
Interims.
The need for an impairment review was also driven by external
factors such as continuing high interest rates and inflation which
it was felt might impact the discount rate used in the Company's
CGU calculations.
The Board agreed to appoint an independent advisor to undertake
an impairment review, based on the current position of the Company
and the current financial environment.
Based on the advisor's review, it was reported that there was an
indication of impairment of GBP5.0m which had arisen primarily due
to an increase in the discount rate used and increased forecast
development costs.
Accordingly, the Board agreed to impair intellectual property by
GBP1.7m and development costs by GBP3.3m.
The Board will continue to assess the carrying value of its
intangible assets on a regular basis to check for any indications
of impairment.
Details
In 2003, the Group acquired Eden Research Inc., primarily
obtaining intellectual property assets worth GBP9,181,967.
Recently, the Group has taken steps to establish its own research
and development facility, comprising a skilled team proficient in
formulation, chemistry, and biology. Over the past three years, the
Group has significantly expanded its internal knowledge base,
historically reliant on external parties. The Directors have
concluded that none of the old formulations, or formulation
techniques acquired from Eden Research Inc. are now relevant to the
Group's current, or future product portfolio. As a result, it is
highly probably that the intellectual property acquired in the past
has substantially decreased in value.
On review of the estimated timeline for product development and
given the slow pace of development to commercialisation of products
in the crop protection industry, the Directors have forecasted that
most of the future revenues for product development projects will
start at the end of the current forecasting timeline of 2030. Given
the general uncertainty as to what the products and their
addressable markets would be, it is not reasonable to include them
within any produce sales revenue forecasts. Therefore, the
Directors felt it was prudent to complete an impairment assessment
based on the projected revenues that have already been sold or have
licences for.
Further to the above, in the period to 30 June 2023, the
Directors have observed a decrease in the expected gross profit and
budgeted operating loss within the Agrochemicals CGU. The Group is
currently evaluating whether this decline is a short-term trend
linked to the current uncertainty of wider the economic environment
or whether this is part of a boarder, long-term trend.
Based on the above, an impairment review has been undertaken by
the Directors. Of the total carrying value of the intangible
assets, GBP8,523,296 have been allocated to the Agrochemicals Cash
Generating Unit (CGU).
The recoverable amounts of the intangible assets has been
determined based on value in use calculations based on the
Agrochemicals CGU.
Assumptions
The Directors have prepared a discounted cash-flow forecast,
based on product sales forecasts including those provided by the
Group's commercial partners, and have taken into account the market
potential for the Group's products and technologies using third
party market data that the Group has acquired licences to. The
discounted cash-flow forecast is limited to those products which
are already being sold, or are expected to be sold in 2023, or
early 2024.
The forecast covers a period of 7.5 years, with no terminal
value, reflecting the useful economic life of the patent in respect
of the underlying technology. Financial forecasts are based on the
approved budget. Financial forecasts for 2024-2025 are used on the
approved long-term plan. Financial forecasts for 2026-2030 are
extrapolated based on a long-term growth rate.
The discount rate is derived from the Group's weighted average
cost of capital, taking into account the cost of equity and debt,
which specific market-related premium and company-related premium
adjustments are made. The discount rate used was 16.36%.
Tax rate is assumed at 25% which is in line with the rate in the
years the Group have earnings, however the current losses brought
forward as at 30 June 2023 exceed GBP30m so not tax charge has been
included in the forecasted years where the Group is profitable.
Based on the above assumptions, the value in use of the
intangible assets was GBP4,970,139 lower than the carrying value of
the intangible assets indicating that an impairment of intangible
assets is required at 30 June 2023.
The cash flows used within the impairment model are based on
assumptions which are sources of estimation uncertainty and small
movements in these assumptions could lead to further impairment.
Management have performed a sensitivity analysis on the key
assumptions in the impairment model using reasonably possible
changes in these key assumptions.
Increase Effect on value
in assumption in use calculation
(GBP)
Discount rate 1% (270,020)
Working capital investment as a % of
revenue growth 1% (137,499)
Average exchange rate 0.30 (682,654)
The impairment charge of GBP4,968,529 has been charged
immediately to the statement of comprehensive income.
10. Investment in associate
Six months Six months Year ended
ended ended
30 June 2023 30 June 2022 31 December
2022
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Percentage ownership interest
and proportion of voting rights 29.90% 29.90% 29.90%
GBP GBP GBP
Non-current assets 347,094 409,425 378,271
Current assets 340,873 310,173 382,753
Non-current liabilities (57,155) (98,806) (92,341)
Current liabilities (386,531) (269,026) (365,430)
Net assets (100%) 244,281 351,766 303,903
Company's share of net assets 73,040 105,178 90,867
Separable intangible assets 118,965 133,533 126,249
Goodwill 412,649 412,649 412,649
Impairment of investment in
associate (299,521) (299,521) (299,521)
Carrying amount of interest
in associate 305,133 351,839 330,244
Revenue 297,304 255,912 497,292
Profit/(loss) from continuing
operations (59,620) (8,579) (56,440)
Post tax profit from discontinued - - -
operations
100% of total post-tax profits (59,620) (8,579) (56,440)
29.9% of total post-tax profits (17,827) (2,565) (16,876)
Amortisation of separable intangible
assets (7,284) (7,284) (14,568)
Company's share of loss including
amortisation of separable intangible
asset (25,111) (9,849) (31,444)
11. Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking Country of Ownership Voting power Nature of business
incorporation interest (%) held (%)
TerpeneTech Republic of 50.00 50.00 Sale of biocide
Limited Ireland products
Eden Research Republic of 100.00 100.00 Dormant
Europe Limited Ireland
TerpeneTech Limited ("TerpeneTech (Ireland))", whose registered office is
108 Q House, Furze Road, Sandyford, Dublin, Ireland, was incorporated on
15 January 2019 and is jointly owned by both Eden Research Plc and TerpeneTech
(UK), the company's associate.
Eden has the right to appoint a director as chairperson who will have a
casting vote, enabling the Group to exercise control over the Board of Directors
in the absence of an equivalent right for TerpeneTech (UK). Eden owns 500
ordinary shares in TerpeneTech (Ireland).
Eden Research Europe Limited, whose registered office is 108 Q House, Furze
Road, Sandyford, Dublin, Ireland, was incorporated on 18 November 2020 and
is wholly owned by both Eden Research plc.
Non-controlling interests
The following table summarises the information relating to the
Group's subsidiary with material non-controlling interest, before
intra-group eliminations:
30 June 30 June 31 Dec
2023 2022 2022
GBP GBP GBP
unaudited unaudited audited
NCI percentage 50% 50% 50%
Non-current assets 86,291 99,563 92,927
Current assets 34,983 - 6,076
Non-current liabilities - - -
Current liabilities - (18,371) -
Net assets 121,274 81,192 99,003
---------- ---------- ---------
Carrying amount of NCI -
Revenue 28,907 25,591 50,038
Profit/(loss) 22,271 18,955 (13,234)
OCI - - -
---------- ---------- ---------
Total comprehensive income 22,271 18,955 (13,234)
Share of NCI (50% of net Total
comprehensive income) 11,136 9,478 (6,617)
Cash flows from operating activities - - -
Cash flows from investment activities - - -
Cash flows from financing activities - - -
Net increase/(decrease) in cash
and cash equivalents - - -
---------- ---------- ---------
Dividends paid to non-controlling
interests - - -
---------- ---------- ---------
12. Property, plant and equipment
Land
and buildings Total
GBP GBP
COST
At 1 January 2022 302,027 302,027
Additions 21,790 21,790
--------------- ---------
At 30 June 2022 323,817 323,817
Additions - owned 9,139 9,139
--------------- ---------
At 31 December 2022 332,956 332,956
Additions 1,875 1,875
--------------- ---------
At 30 June 2023 334,831 334,831
=============== =========
AMORTISATION
At 1 January 2022 69,749 69,749
Charge for the period 31,356 31,356
--------------- ---------
At 30 June 2022 101,105 101,105
Charge for the period 33,065 33,065
--------------- ---------
At 31 December 2022 134,170 134,170
Charge for the period 33,486 33,486
--------------- ---------
At 30 June 2023 167,656 167,656
=============== =========
CARRYING AMOUNT
At 30 June 2023 167,175 167,175
=============== =========
At 31 December 2022 198,786 198,786
=============== =========
At 30 June 2022 222,712 222,712
=============== =========
13. Right of use assets
Land and
buildings Vehicles Total
GBP GBP GBP
COST
At 1 January 2022 443,777 86,073 529,850
Additions - 23,194 23,194
Disposals - (35,865) (35,865)
----------- ----------- ---------
At 30 June 2022 443,777 73,402 517,179
Additions - 64,034 64,034
----------- ----------- ---------
At 31 December 2022 443,777 137,436 581,213
At 30 June 2023 443,777 137,436 581,213
=========== =========== =========
AMORTISATION
At 1 January 2022 119,865 37,198 157,063
Charge for the period 45,438 11,364 56,802
Eliminated on disposal - (35,865) (35,865)
----------- ----------- ---------
At 30 June 2022 165,303 12,697 178,000
Charge for the period 45,438 24,961 70,399
At 31 December 2022 210,741 37,658 248,399
Charge for the period 45,438 22,235 67,673
At 30 June 2023 256,179 59,893 316,072
=========== =========== =========
CARRYING AMOUNT
At 30 June 2023 187,598 77,543 265,141
=========== =========== =========
At 31 December 2022 233,036 99,778 332,814
=========== =========== =========
At 30 June 2022 278,474 60,705 339,179
=========== =========== =========
14. Inventories
30 June 31 December
30 June 2023 2022 2022
GBP GBP GBP
Raw materials 533,227 114,562 115,929
Goods in transit - 251,985 411,181
Finished goods 118,167 92,877 98,348
651,394 459,424 625,458
Inventory above is shown
net of a provision off
Provision for obsolete inventory 76,250 - 76,250
76,250 - 76,250
15. Trade and other receivables
30 June 31 December
30 June 2023 2022 2022
GBP GBP GBP
Trade receivables 479,311 1,166,042 322,489
VAT recoverable 252,336 231,407 179,214
Other receivables 99,140 66,410 67,410
Prepayments and accrued
income 99,213 100,793 89,753
930,000 1,564,652 658,866
Trade receivables are shown
net of a provision for doubtful
debt of:
Provision for doubtful debt 107,188 - 107,188
107,188 - 107,188
Trade receivables disclosed above are measured at amortised cost.
The Directors consider that the carrying amount of trade and
other receivables approximates their fair value.
16. Trade and other payables
30 June 31 December
30 June 2023 2022 2022
GBP GBP GBP
Trade payables 1,171,433 1,306,597 1,150,873
Accruals and deferred income 420,310 212,193 515,860
Social security and other
taxation 55,434 47,541 52,849
Other payables 171,405 72,614 93,759
1,818,582 1,638,945 1,813,341
17. Share based payments
Long-Term Incentive Plan ("LTIP")
Since September 2017 Eden has operated an option scheme for
executive directors, senior management and certain employees under
an LTIP which allows for certain qualifying grants to be HMRC
approved. Details on options issued in prior periods can be found
in the annual report for the year ended 31 December 2022.
Options
Number of share Weighted average
options exercise price (pence)
30 Jun 30 Jun 30 Jun 30 Jun
2023 2022 2023 2022
Outstanding at 1 January 16,312,649 18,680,044 7 7
Granted during the period - 2,006,939 - 5
Exercised during the period (250,000) - 1 -
Lapsed during the period (3,500,000) (3,500,000) 6 6
----------- ----------- -------------------- ------
Exercisable at 30 June 12,562,649 17,186,943 8 8
=========== =========== ==================== ======
The following information is relevant in the determination of
the fair value of options granted during 2022 under the LTIP
Replacement Award.
Grant date 30/06/2022
Number of awards 2,006,939
------------------
Share price GBP0.04 - GBP0.05
------------------
Exercise price GBP0.01 - GBP0.06
------------------
Expected dividend yield -%
------------------
Expected volatility 63%
------------------
Risk free rate 0.95%
------------------
Vesting period One year
------------------
Expected Life (from date of grant) 3 years
------------------
The exercise price of options outstanding at the end of the period
ranged between 6p and 10.4p (H1 2022: 1p and 10.4p) and their
weighted average contractual life was 1.4 years (H1 2022: 2.1
years).
The share-based payment charge for the period, in respect of options,
was GBP119,083 (H1 2022: GBP152,135). The charge in H1 2023 is
in respect of the options granted in 2022 under the LTIP Replacement
Award.
During the period, 3,500,000 of options lapsed and GBP171,251
(H1 2022: GBP171,251) was transferred from the warrant reserve
to retained earnings.
Also, during the period, 250,000 of options were exercised and
GBP8,156 (H1 2022: GBPnil) was transferred from the warrant reserve
to retained earnings.
Warrants
Number of share Weighted average
options exercise price (pence)
30 Jun 30 Jun 30 Jun 30 Jun
2023 2022 2023 2022
Outstanding at 1 January - 2,989,865 - 19
Granted during the period - - - -
Exercised during the period - - - -
Lapsed during the period - - - 25
-------- --------------- ---------- -------------
Exercisable at 30 June - 2,989,865 - 15
======== =============== ========== =============
There were no warrants outstanding at 30 June 2023.
The exercise price of warrants outstanding at 30 June 2022 ranged
between 12p and 30p and their weighted average contractual life
was 1.0 year. None of the warrants had vesting conditions.
The share-based payment charge for the period, in respect of warrants,
was GBPnil (H1 2022: GBPnil).
Xinova liability
In September 2015, the Company entered into a Collaboration and
Licence agreement with Invention Development Management Company LLC
(part of Intellectual Ventures, now called Xinova LLC). As part of
this agreement, upon successful completion of a number of different
tasks, Xinova became entitled to a payment which is calculated
using a percentage (initially 3.17%, reduced to 1.6% following the
fundraise in March 2020) of the fully diluted equity value, reduced
by cash and cash equivalents, of the Company on the date on which
payment becomes due which is expected to be 30 September 2025. This
has been accounted for as a cash-settled share-based payment under
IFRS 2.
An amount of GBP67,462, being the estimated fair value of the
liability due to Xinova, was recognised during 2016 and included as
a non-current liability. It is not believed that the value of the
services provided by Xinova can be reliably measured, and so this
amount was calculated based on the Company's market capitalisation
at 31 December 2016, adjusted to reflect the percentage of work
completed by Xinova at that date based on a pre-determined schedule
of tasks.
During H1 2022, Eden was informed that Xinova had begun to wind
down its operations.
As a consequence, Eden began communications with an agent acting
on behalf of Xinova to effect the wind down in respect of the
liability owed to Xinova by Eden.
On 22 April 2022, Eden signed a 'full and final' settlement
agreement with Xinova which resulted in Eden paying an amount of
GBP43,855, which represented a c. 50% discount to the liability of
GBP87,740 as at 31 December 2021, in line with the then existing
contract.
At 30 June 2023, an amount of GBPnil (30 June 2022: GBPnil) was
owed to Xinova.
18. Segmental Reporting
IFRS 8 requires operating segments to be reported in a manner
consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who
is responsible for the resource allocati on and assessing
performance of the operating segments has been identified as the
Executive Directors as they are primarily responsible for the
allocation of the resources to segments and the assessment of
performance of the segments.
The Executive Directors monitor and then assess the performance
of segments based on product type and geographical area using a
measure of adjusted EBITDA. This is the result of the segment after
excluding the share-based payment charges, other operating income
and the amortisation of intangibles. These items, together with
interest income and expense are not allocated to a specific
segment.
The segmental information for the six months ended 30 June 2023
is as follows:
Agrochemicals Consumer Animal Total
products health
-------------- ---------- -------- ------------
Revenue GBP GBP GBP GBP
-------------- ---------- -------- ------------
Milestone payments - - - -
-------------- ---------- -------- ------------
R & D charges - 4,943 - 4,943
-------------- ---------- -------- ------------
Royalties - 28,907 - 28,907
-------------- ---------- -------- ------------
Product sales 1,108,521 - - 1,108,521
-------------- ---------- -------- ------------
Total revenue 1,108,521 33,850 - 1,142,371
-------------- ---------- -------- ------------
EBITDA (751,178) 33,850 - (717,328)
-------------- ---------- -------- ------------
Share Based Payments (119,083) - - (119,083)
-------------- ---------- -------- ------------
Adjusted EBITDA (870,261) 33,850 - (836,411)
-------------- ---------- -------- ------------
Amortisation (257,941) (6,636) - (264,577)
-------------- ---------- -------- ------------
Impairment (4,968,529) - - (4,968,529)
-------------- ---------- -------- ------------
Depreciation (101,159) - - (101,159)
-------------- ---------- -------- ------------
Finance costs, foreign exchange
and investment revenues 2,499 - - 2,499
-------------- ---------- -------- ------------
Income Tax 317,230 - - 317,230
-------------- ---------- -------- ------------
Share of Associate's loss - (25,111) - (25,111)
-------------- ---------- -------- ------------
(Loss)/Profit for the Year (5,878,161) 2,103 - (5,876,058)
-------------- ---------- -------- ------------
Total Assets 6,971,889 121,274 - 7,093,613
-------------- ---------- -------- ------------
Total assets includes:
-------------- ---------- -------- ------------
Additions to Non-Current
Assets 428,793 - - 428,793
-------------- ---------- -------- ------------
Total Liabilities 2,085,170 20,000 - 2,105,170
-------------- ---------- -------- ------------
The segmental information for the six months ended 30 June 2022
is as follows:
Agrochemicals Consumer Animal Total
products health
-------------- ---------- -------- -----------
Revenue GBP GBP GBP GBP
-------------- ---------- -------- -----------
Milestone payments - - - -
-------------- ---------- -------- -----------
R & D charges - 3,232 - 3,232
-------------- ---------- -------- -----------
Royalties - 25,591 - 25,591
-------------- ---------- -------- -----------
Product sales 1,011,213 - - 1,011,213
-------------- ---------- -------- -----------
Total revenue 1,011,213 28,823 - 1,040,036
-------------- ---------- -------- -----------
EBITDA (822,740) 28,823 - (793,917)
-------------- ---------- -------- -----------
Share Based Payments (152,135) - - (152,135)
-------------- ---------- -------- -----------
Adjusted EBITDA (974,875) 28,823 - (946,052)
-------------- ---------- -------- -----------
Amortisation (239,689) (6,636) - (246,325)
-------------- ---------- -------- -----------
Depreciation (88,159) - - (88,159)
-------------- ---------- -------- -----------
Finance costs, foreign exchange
and investment revenues (43,191) - - (43,191)
-------------- ---------- -------- -----------
Income Tax 345,424 - - 345,424
-------------- ---------- -------- -----------
Share of Associate's loss - (9,849) - (9,849)
-------------- ---------- -------- -----------
(Loss)/Profit for the Year (1,000,490) 12,338 - (988,152)
-------------- ---------- -------- -----------
Total Assets 13,931,631 99,563 - 14,038,478
-------------- ---------- -------- -----------
Total assets includes:
-------------- ---------- -------- -----------
Additions to Non-Current
Assets 702,173 - - 702,173
-------------- ---------- -------- -----------
Total Liabilities 1,982,793 18,371 - 2,001,164
-------------- ---------- -------- -----------
The segmental information for the year ended 31 December 2022 is
as follows:
Agrochemicals Consumer Animal Total
products health
-------------- ---------- -------- ------------
Revenue GBP GBP GBP GBP
-------------- ---------- -------- ------------
Milestone payments - - - -
-------------- ---------- -------- ------------
R & D charges 75,334 14,309 - 89,643
-------------- ---------- -------- ------------
Royalties 17,694 100,038 - 117,732
-------------- ---------- -------- ------------
Product sales 1,619,796 - - 1,619,796
-------------- ---------- -------- ------------
Total revenue 1,712,824 114,347 - 1,827,171
-------------- ---------- -------- ------------
Adjusted EBITDA (1,841,805) 114,347 - (1,727,458)
-------------- ---------- -------- ------------
Share Based Payments (152,135) - - (152,135)
-------------- ---------- -------- ------------
EBITDA (1,993,940) 114,347 - (1,879,593)
-------------- ---------- -------- ------------
Amortisation (482,546) (13,272) - (495,818)
-------------- ---------- -------- ------------
Depreciation (191,622) - - (191,622)
-------------- ---------- -------- ------------
Finance costs, foreign exchange
and investment revenues 30,882 - - 30,882
-------------- ---------- -------- ------------
Impairment of investment - - - -
in associate
-------------- ---------- -------- ------------
Income Tax 323,716 - - 323,716
-------------- ---------- -------- ------------
Share of Associate's loss - (31,444) - (31,444)
-------------- ---------- -------- ------------
(Loss)/Profit for the Year (2,313,510) 69,631 - (2,243,879)
-------------- ---------- -------- ------------
Total Assets 12,812,579 99,003 - 12,911,582
-------------- ---------- -------- ------------
Total assets includes:
-------------- ---------- -------- ------------
Additions to Non-Current
Assets 1,141,418 - - 1,141,418
-------------- ---------- -------- ------------
Total Liabilities 2,168,664 - - 2,168,664
-------------- ---------- -------- ------------
Geographical Reporting
Six months Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
GBP GBP GBP
UK 33,850 28,823 114,347
Europe 1,108,521 1,011,213 1,712,824
----------- ----------- -------------
1,142,371 1,040,036 1,827,171
=========== =========== =============
The revenue derived from Milestone Payments relates to
agreements which cover a number of countries both in the EU and the
rest of the world.
All of the non-current assets are in the UK.
19. Merger Reserve
Six months Six months Year ended
ended 30 ended 30 31 December
June 2023 June 2022 2022
GBP GBP GBP
Merger reserve - 10,209,673 10,209,673
============= =========== =============
During the period, the carrying value of the intellectual
property which had arisen from an acquisition in 2003 had been
reduced to zero. As such, under the Companies Act 2006, the full
balance of the merger reserve of GBP10,209,673 was transferred to
retained earnings.
20. Subsequent Events
Capital Raising
On 28 July 2023, the Company announced that it had raised GBP1.1
million through a firm placing and subscription of new Ordinary
Shares ("Firm Capital Raising") and a further GBP0.4 million
through a Retail Offer and had conditionally raised a minimum of
GBP7.9 million by way of a Placing of new Ordinary Shares
("Conditional Capital Raising"), all before expenses.
The Conditional Capital Raising is expected to complete
shortly.
LTIP grant
On 31 August 2023, the The Company made a LTIP grant to the
Executives, in respect of 2022 in order to ensure continuity of
long term incentive, of options over 8,698,909 new Ordinary Shares
in Eden ("the Options"), at a strike price of 5.05p each, being the
2022 Volume Weighted Average Price, in the amounts of 4,968,000
awarded to Sean Smith and 3,730,909 awarded to Alex Abrey.
The Options expire on 31 August 2027 and vest as follows:
1/3 upon grant
1/3 12 months from the date of grant
1/3 24 months from the date of grant
Separately, the Board agreed that it would extend the exercise
date to 31 December 2023 for the 3,500,000 options (2,000,000
awarded to Sean Smith and 1,500,000 awarded to Alex Abrey) with a
strike price of 6p which were granted to the Executives in April
2021 under the Company's LTIP and which were due to expire on 30
June 2023.
The extension was agreed to due to the unusually long closed
period that the Executives were placed in prior to the options'
expiration date.
Notes to Editors:
Eden Research is the only UK-listed company focused on
biopesticides for sustainable agriculture. It develops and supplies
innovative biopesticide products and natural microencapsulation
technologies to the global crop protection, animal health and
consumer products industries.
Eden's products are formulated with terpene active ingredients,
based on natural plant defence metabolites. To date, they have been
primarily used on high-value fruits and vegetables, improving crop
yields and marketability, with equal or better performance when
compared with conventional pesticides. Eden has two products
currently on the market:
Based on plant-derived active ingredients, Mevalone(R) is a
foliar biofungicide which initially targets a key disease affecting
grapes and other high-value fruit and vegetable crops. It is a
useful tool in crop defence programmes and is aligned with the
requirements of integrated pest management programmes. It is
approved for sale in a number of key countries whilst Eden and its
partners pursue regulatory clearance in new territories thereby
growing Eden's addressable market globally.
Cedroz (TM) is a bionematicide that targets free living
nematodes which are parasitic worms that affect a wide range of
high-value fruit and vegetable crops globally. Cedroz is registered
for sale on two continents and Eden's commercial collaborator,
Eastman Chemical, is pursuing registration and commercialisation of
this important new product in numerous countries globally.
Eden's Sustaine(R) encapsulation technology is used to harness
the biocidal efficacy of naturally occurring chemicals produced by
plants (terpenes) and can also be used with both natural and
synthetic compounds to enhance their performance and ease-of-use.
Sustaine microcapsules are naturally-derived, plastic-free,
biodegradable micro-spheres derived from yeast. It is one of the
only viable, proven and immediately registerable solutions to the
microplastics problem in formulations requiring encapsulation.
Eden was admitted to trading on AIM on 11 May 2012 and trades
under the symbol EDEN. It was awarded the London Stock Exchange
Green Economy Mark in January 2021, which recognises London-listed
companies that derive over 50% of their total annual revenue from
products and services that contribute to the global green economy.
Eden derives 100% of its total annual revenues from sustainable
products and services.
For more information about Eden, please visit: www.edenresearch.com .
Follow Eden on LinkedIn , Twitter and YouTube .
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END
IR VVLFLXKLFBBV
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September 29, 2023 02:01 ET (06:01 GMT)
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