27 August
2024
Incanthera
plc
("Incanthera" or "the
Company")
FINAL RESULTS FOR THE YEAR ENDED 31
MARCH 2024
Incanthera plc (AQSE: INC), the
specialist company focused on innovative technologies in
dermatology and oncology is pleased to announce its audited final
results for the year ended 31 March 2024.
Incanthera is dedicated to
identifying and commercialising inspirational therapeutics,
combined with uniquely targeted delivery technologies that show the
potential to transform the future of healthcare.
Highlights
· Commercial deal with world's
largest health and beauty retailer, AS Watson.
· Incanthera's Skin + CELL
skincare range of 5 products to be launched in Europe in September
2024, through AS Watson Group partner, Marionnaud, with further
anticipated launch through AS Watson Asian store network soon
after
· AS Watson group retail store
capacity, 16,500 stores across Europe and Asia
· Manufacturing partnership
with Frike, Switzerland's premier luxury skincare
manufacturer
· Incanthera retains the right
to discussions with all global commercial partners outside of
Watson's group exclusivity
· Institutional led fundraising
in December 2023 for investment in Inventory
build
· Protection of valuable IP
across global territories
Financial
Highlights:
·
Cash position at 31 March 2024 increased to £61k
(31 March 2023: £3k).
·
Investment round of £1.1m, generating total gross
proceeds of £825k.
· Tight cost
controls remain across a lean business model
Post year end events:
Further institutional led fundraise
in June 2024 and exercise of shareholder warrants in April 2024 and
broker warrants in August 2024, raised a total of £3.3
million gross proceeds, for further inventory build towards product launch.
Simon Ward, Chief Executive
Officer, commented:
"This is the year in which we have delivered our promise
of a successful commercial deal, that will launch
our world-class
products onto an international stage at the very highest
level.
We
have completed a deal that pays homage to our excellent in-house
formulation team, to the strength of skills shown in our small but
impassioned management team, and the drive and huge momentum gained
through our City and corporate facing communications to
consistently engage with our many long standing loyal shareholders,
and attract new retail and institutional City
investors."
Caution regarding forward looking statements
Certain statements in this
announcement, are, or may be deemed to be, forward looking
statements. Forward looking statements are identified by their use
of terms and phrases such as ''believe'', ''could'', "should"
''envisage'', ''estimate'', ''intend'', ''may'', ''plan'',
''potentially'', "expect", ''will'' or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
For further
enquiries:
Incanthera plc:
|
www.incanthera.com
Tim McCarthy,
Chairman
tim.mccarthy@incanthera.com
Simon Ward, Chief Executive
Officer simon.ward@incanthera.com
Suzanne Brocks, Head of
Communications suzanne.brocks@incanthera.com
|
+44 (0) 7831 675747
+44 (0) 7747 625506
+44 (0) 7776 234600
|
|
|
|
|
Aquis Exchange Corporate
Adviser:
Cairn Financial Advisers
LLP
Jo Turner /
Liam Murray
|
+44 (0) 20 7213 0880
|
|
|
|
|
Broker:
Stanford Capital Partners
Ltd
Patrick
Claridge/Bob Pountney
|
+44 (0) 20 3650 3650/51
|
Notes to
Editors
Incanthera is a specialist company
focused on innovative technologies in dermatology and
oncology. It seeks to identify and develop innovative solutions to
current clinical, commercially relevant unmet
needs, utilising new technology from
leading specialists and academic institutions as well as its
in-house development team.
The Company originated from
the Institute of Cancer Therapeutics ("ICT") at
the University of Bradford. Incanthera's strategy
is to develop each candidate in its portfolio from initial
acquisition or discovery to securing its future through
commercially valuable partnerships at the earliest opportunity in
its development pathway.
For more information on the Company
please visit: www.incanthera.com
@incantheraplc
About Skin + CELL
Skin + CELL is Incanthera's luxury
skincare brand utilising our ground-breaking formulation and
delivery expertise, to bring scientifically proven formulations to
cosmetics. Skin + CELL's unique formulations, enriched with
targeted bioactive B3 (an activated form of niacinamide) are
delivered directly into the skin's cells to optimise and protect
cellular health, energy and protective capabilities.
Incanthera's skincare technology
harnesses unique delivery pathways through recently patented
formulations designed by our in-house experts who have previously
formulated skincare for some of the world's leading skincare and
pharmaceutical companies. These formulations fortify otherwise
depleted physiological pathways to improve the skin's performance,
ability to self-repair and to address previously unmet cosmetic
conditions in skin health.
• Skin + CELL's unique
formulations, currently enriched with targeted bioactive B3 (an
activated form of niacinamide) but anticipating further bioactive
ingredient formulations are delivered directly into the skin's
cells to optimise cellular health, energy and protective
capabilities.
• Independent studies have shown
Incanthera's technology is uniquely effective in delivering
Bioactive B3 into the skin, energising the living cells of the skin
to maintain natural health and protection against adverse
environmental challenges and maintaining even skin
tones.
• Skin + CELL's complementary
range of products are based on advanced, clinically designed,
formulation concentrates which combine leading edge pharmaceutical
enhancement technology with selected prestige cosmetic ingredients
to give an effective product which gives a silky emollience in use
and leaves the skin visibly radiant, energised and
protected.
Skin + CELL's luxury skincare
current range extends across face, body, hand, face serum and eye
cream, and will also include SPF concentrations and further
bioactive derivatives of vitamins in the future.
About Marionnaud
Marionnaud is the largest luxury
perfumery and cosmetics chain in Europe with over 1,220 stores and
a 27% market share in France. Marionnaud is managed by the AS
Watson Group based in Hong Kong, the world's largest international
health and beauty retailer.
https://www.marionnaud.com
About AS Watson
The AS Watson Group is the
world's largest international health and beauty retailer, with
16,500 stores in 28 markets, primarily in Asia and Europe. A
member of CK Hutchison Holdings, AS Watson operates the world's
largest portfolio of retail formats, retail brands and has the
largest geographical presence including a significant online retail
presence.
http://www.aswatson.com/
https://youtu.be/IZ6TolZi4Go
Chairman's Statement
I write this report, as Chairman of
a business significantly evolved from that we reported on last year
with the conclusion of a groundbreaking deal that we entered into
only months before this reporting period end.
Incanthera has finally had the
opportunity to deliver on its promise to shareholders to
commercialise its valuable IP into a deal that has transformed both
the current corporate picture and the ongoing outlook for our
company.
We reported last year that the
management team had been working with focused determination towards
the refinement and conclusion of a potential deal that would bring
our expertise to the commercial forefront.
In December 2023, we were delighted
to conclude and announce a commercial deal with Marionnaud, part of
the AS Watson Group, the largest health, beauty and lifestyle
retailer in the world.
Bringing immediate recognition of
Incanthera's IP, formulation and delivery technologies expertise to
a global stage, this deal is truly transformational for Incanthera
as it is poised to deliver revenues and profitability in the near
term to Shareholders, and to produce a global trajectory for
increasing retail opportunity and global expansion
beyond.
Commercial Deal
On 18 December 2023, Incanthera
announced a commercial skincare deal with Marionnaud for the launch
and distribution of Skin + CELL, the Company's luxury skin care
range.
Marionnaud is the largest luxury
perfumery and cosmetics chain in Europe with over 1,220 stores and
a 27% market share in France, managed by the AS Watson Group based
in Hong Kong, the world's largest international health and beauty
retailer, with 16,500 stores in 28 markets, primarily in Asia and
Europe.
Under the terms of the deal,
Marionnaud will launch Skin + CELL into Europe, with the launch
into Asian markets by the AS Watson Group who will be responsible
for marketing and brand awareness of Skin + CELL, through their
extensive global marketing presence, as operator of the world's
largest portfolio of retail formats, retail brands and the largest
geographical presence including significant online retail presence,
influencer and social media expertise.
Incanthera wholly owns the IP and
the brand of Skin + CELL, which has full patent protection and
retains the right to enter into commercial deals with other
organisations in all other global territories outside those in
which Marionnaud and AS Watson will have geographical exclusivity
to Skin + CELL.
To deliver this deal, Incanthera has
entered into a manufacturing partnership with skincare
manufacturing experts Frike, based in Switzerland. Under the terms
of this deal, Frike is responsible for manufacturing and delivery
of our product to Marionnaud.
Incanthera also announced that it
had established a wholly owned subsidiary, Skin + CELL AG, based in
Zurich, to oversee the manufacture and distribution of our product,
and manage the relationships within the commercial deal and
potential new deals beyond.
Shareholder Support
The commercial deal announcement to
the market and to shareholders in December 2023 came alongside
institutional investment to raise £1million for inventory build and
product launch.
This was supported by a strong share
price reaction from the market, and trading in our stock. This has
been further supported and enhanced through an intensive media and
investor relations campaign, providing depth and wider information
to the market and to shareholders, increased corporate awareness
and highly increased share trading.
Exercise of existing shareholder
warrants in April and broker warrants in August, raised £0.7
million, adding more financial resources to the inventory build,
whilst demonstrating wide shareholder support.
A further institutional led
investment in June 2024 added a further £2.6 million. This funding
has been deployed into further inventory scale-up in anticipation
of the initial launch in September 2024.
I have attended many investor
presentation and City events over the last year and I recognise
that support for smaller companies has not been easy. I believe we
have seen quite the opposite in our communications and
interactions, for which we are grateful, but believe that there is
support for companies with a strong story and with near term growth
potential.
In this regard I would also like to
acknowledge the support of the team at Aquis Stock Exchange for
their championing of small stocks and support for the growth
companies on their Exchange.
Outlook
I believe that Incanthera has
delivered an exceptional deal with AS Watson Group.
The international brand opportunity,
marketing and global expansion potential is vast, and we have a
uniquely exciting path ahead to take Skin + CELL onto the shelves
of the world's largest health, beauty and lifestyle retailer in the
world, catapulted by a global marketing machine, as part of the AS
Watson group.
The conclusion of the deal is
exclusively due to the passion, total belief and dedication of our
team, who it is true to say have demonstrated their commitment to
our company and you, our shareholders, with their skillset and
management strength at the very highest level.
They have endured periods of
self-sacrifice, uncertainty and yet have continued to reach for the
highest goals, maintaining costs at an absolute minimum to ensure
Incanthera's survival and stoically and ambitiously steered through
to conclude the deal we have presented and the future we have
delivered.
I thank them all and I could not be
prouder of the team. They remain passionate and fiercely proud of
our business and all we have achieved whilst remaining grounded for
the task ahead.
As we look forward to the launch of
our products into the international arena, I reflect on what we
have achieved in the period under review and the months
since.
I believe that we have delivered on
our promise to shareholders and that it provides an exceptional
opportunity for growth, product development and international
recognition, alongside shareholder returns.
It truly is a transformational
period in the company's history and one that we are delighted to
share with you, and to thank you our loyal shareholders and our
fantastic advisory teams (Cairn Financial Advisors and
Stanford Capital Partners) for your support, investment and
belief.
Tim
McCarthy
Chairman
23
August 2024
Chief Executive's Review
This is the year in which we have
delivered our promise of a successful commercial deal, that will
launch our world-class products onto an international stage at the
very highest level.
It was a great feeling to deliver
the news in December 2023, that we had finessed and concluded a
deal that is a triumph for Incanthera, in the structure, global
potential, showcase of our expertise and perfect stage from which
we can launch and further grow our business.
The opportunity for Incanthera to
take our first products to the market with the world's largest
health and beauty retailer, with a store capacity of 16,500 outlets
across 28 markets, could not have been more rewarding to close and
to announce.
This deal perfectly demonstrates the
extraordinary capability we have in our new and unique formulation,
now the heart of an extensive luxury skincare range, Skin + CELL,
to meet both the commercial demand of the world leader in this
market and the enormous potential we have to extend, grow and adapt
that core technology from here across the globe.
Overview of Progression
What was essential in the
negotiations to conclude the deal, was the quality and proof of
what we have in our inherent IP, i.e. the unique formulations with
delivery technology that is safe, efficacious and is luxurious in
use and appearance.
The appeal of something with such
unique capability and potential, entirely captured the attention of
the teams we were engaging with at Marionnaud, and their immediate
recognition and enthusiasm for developing a skin care range for
their launch and distribution across their network became the focus
of the commercial deal negotiations.
Our teams rose to that challenge and
our excellent in-house formulation experts refined and finessed
various formulations to provide a range of applications, harnessing
the unique actions and delivery expertise with superb aesthetic
appeal, which we have patented and branded, Skin + CELL.
Skin + CELL is Incanthera's luxury
skincare brand bringing scientifically proven formulations to
cosmetics. Skin + CELL's unique formulations, enriched with
targeted bioactive B3, are delivered directly into the skin's cells
to fortify otherwise depleted physiological pathways to improve the
skin's performance, ability to self-repair and to address
previously unmet cosmetic conditions in skin health.
Our cosmetic skincare technology is
wholly owned and fully patented. The brand, Skin + CELL, belongs to
Incanthera, and we have established a 100% owned subsidiary, Skin +
CELL AG, in Zurich to manage the logistics of manufacture,
commercial launch and further roll out as well as the essential
relationship management between companies.
Skin + CELL will be manufactured
through a partnership with Frike, the world's premier luxury
skincare brand manufacturer, also based in Zurich. One of the
essential points for Marionnaud, in their expression of the feel
and purity of the brand, was to have the product manufactured in
Switzerland for the messaging and imagery for European and wider
Asian markets. Our teams worked very quickly and efficiently to
achieve this essential infrastructure of manufacturing capabilities
and subsidiary formation to manage what will be a potentially vast
European and further global roll out of Skin + CELL.
Partnership
Our working relationship with
Marionnaud is a very supportive one and we are delighted by their
ongoing enthusiasm for our product launch in Europe. Our
teams work excellently together in partnership towards our shared
goals of launch and geographical roll-out.
I would like to thank the teams of
Marionnaud and AS Watson in Zurich and beyond for their exemplary,
friendly and approachable work ethic which mirrors the personality
of Incanthera.
We have a clearly agreed path for
progression to launch our initial orders and beyond. We have our
operational and infrastructure teams in place and working towards
those targets. I would like to thank our subsidiary, manufacturing
and support teams for their continued effort.
Our
business
Our expert in-house formulators have
clearly delivered a world class, uniquely exceptional product, now
presented across a range of luxury applications and they continue
to work on new and exciting potential products for the
future. There is scope across many arenas for our delivery
expertise to address indications through our unique
formulations. We are very proud of this world-class
expertise.
Our management team have striven to
negotiate and refine a deal to propel Incanthera onto a global
stage with immediate transformational effects of revenue
generation, profitability and growth. Our team has pushed through
some difficult points in this journey and I acknowledge their
conviction and passion for our business, with pride.
We are surrounded by the very best,
in terms of our long-standing advisory teams who share and champion
our ambitions, successes and ensure we present those in optimum
order.
Without them this journey would have
been far more difficult and far less enjoyable. We include them in
all our successes.
We also continue to liaise and
discuss with the Institute of Cancer Therapeutics (ICT), at The
University of Bradford, and the inspiring work undertaken there and
continue to progress our pharmaceutical formulation for the
treatment of actinic keratosis.
The
Year in Reflection
We have completed a deal that pays
homage to our excellent in-house formulation team, to the strength
of skills shown in our small but impassioned management team, and
the drive and huge momentum gained through our City and corporate
facing communications to consistently engage with our many long
standing loyal shareholders, and attract new retail and
institutional City investors.
We have built a supporting
infrastructure, we have an excellent relationship with the very
best customer we could have pitched to, and their enthusiasm and
communications with us is second to none.
We have gained much in this year, we
have built much in the last months, and we have proved our
abilities in commercialisation, management and commitment to reach
for the very best for our shareholders.
As we prepare for the launch of Skin
+ CELL onto a global stage, we remain a humble, grounded and
accomplished team as we look towards the great opportunity ahead.
We are very aware of the enormous task ahead, and we are focussed
upon delivering a successful launch and the subsequent further roll
out.
We do not forget the loyalty and
patience of our shareholders, and we welcome your input and
communications with us, as we look forward to reaching our goals
and rewarding our shareholders, supporters, and the market with
further news.
Dr.
Simon Ward
Chief Executive Officer
23
August 2024
Financial Review
The financial performance for the
year ended 31 March 2024 was in line with expectations.
Losses
The total group loss for the year
before exceptional items was £1,380k (31 March 2023: £960k)
including a charge for share-based compensation of £115k (2023:
£149k). Operating expenses excluding share-based compensation
Increased to £1,265k (2023: £811k).
Share-based
compensation
Accounting standards require a
charge to be made against the grant of share options and recognised
in the Consolidated Statement of Comprehensive Income. This
amounted to £115k (2023: £149k) and has no impact on cash
flows.
Headcount
Average headcount of the Group for
the year was Seven (2023: Eight).
Taxation
The Group has not elected to claim
research and development tax credits under the small or medium
enterprise research and development scheme. (2023:
£73k).
Cash flows and financial
position
The cash position at 31 March 2024
increased to £61k (31 March 2023: £3k). During the year the Group
completed an investment round of £1.1m, generating total gross
proceeds of £825k. For the whole of the year the group remained in
a pre-revenue phase.
In December 2023, Incanthera plc
completed the establishment of Skin+Cell AG, securing our base of
operations in Switzerland.
Dividends
No dividend is recommended (2023:
nil) due to the early stage of the development of the
Group.
Loss Per Share
The basic and diluted loss per share
was 1.79p (before exceptional costs) (2023: 1.18p).
Key performance
indicators
Key Performance Indicators include a
range of financial and non-financial measures (such as development
progress). Details about the progress of our development programmes
(non- financial measures) are included elsewhere in this Strategic
Report, and below are the other indicators (financial measures)
considered pertinent to the business.
Laura Brogden
Chief Financial Officer
23
August 2024