TIDMOPTI
RNS Number : 7262N
OptiBiotix Health PLC
27 September 2023
27 September 2023
OptiBiotix Health plc
("OptiBiotix" or the "Company" or the "Group")
Half Year Report
OptiBiotix Health p lc (AI M: OPTI), a life sciences busi ness d
eveloping compou n ds to tackle obesity, cardiovascular disease,
diabetes and skincare, a nnounces its unaudited results for the six
months ended 30 June 2023.
Highlights
-- Strong first half of trading with sales of GBP351k (2022:
GBP119k), a 195% increase over H1 2022. Given H1 2022 included
GBP19.5k from Probiotic sales up to March 30 2022, the 'like for
like' increase is 251%. 85% of this sales income was received in Q2
2023
-- A 154% increase in gross profit from GBP62k in H1 2022 to GBP158k in H1 2023
-- A 17.3% reduction in administrative expenses from GBP1,108k to GBP918k
-- Sales from existing partners slowly returning to forecast
with new orders from both The Hut Group (THG) and Holland &
Barrett
-- Improved sales performance in H1 2023 by Apollo Pharmacies
(up 500%) in India and Nahdi Medical (up 30%) in Saudi Arabia
following more active account management. These increased sales are
not reflected in H1 but impact on restocking requirements in H2
2023
-- Three new partners in Asia who have all placed initial orders for SlimBiome(R)
-- Strong sales growth of own brand products on e-commerce channel
-- A large first order from a new partner of GBP116k for
SlimBiome (R) from a contract manufacturer of a leading weight
management and sports nutrition brand in the USA
-- The listing of SlimBiome(R) Medical and Gofigure(R) products
on Amazon UK in February 2023, and Slimbiome(R) Medical on Amazon
Germany and Walmart USA in May 2023. We anticipate further
international listings on Amazon throughout 2023 including Amazon
India, the Gulf States, and Amazon USA. This is all part of a
strategy to increase the internationalisation of our own brand
products online in 2023
-- Published the results of a third human study on SlimBiome(R)
demonstrating statistically significant benefits to appetite and
hunger regulation with a single dose of SlimBiome(R)
-- The launch of our gut and digestive health WellBiome(R)
product as part of a strategy to enhance our range of product
offerings and to mitigate the seasonal variations in the sale of
weight management products. The product has received excellent
reviews on Amazon with growing month on month sales (125% increase
July to August) and a high number of repeat orders (63% in August).
We will increase our marketing on WellBiome(R) and extend its
availability to other Amazon international channels in Q4 2023
-- Significant progress in the manufacturing scale up of our microbiome modulators: a range of second-generation products which selectively enhance the growth rate of specific types of bacteria and create the potential for targeted treatment of a range of human diseases
-- Good progress from both partners in the commercial scale up
and testing of our second-generation SweetBiotix(R) family of
products offering exciting potential for future growth
-- No debt with valuable assets in SkinBioTherapeutics plc and
ProBiotix Health plc providing a strong balance sheet
Post Period
-- As announced on 29 August 2023, one of our partners has
secured an international listing for products containing SlimBiome
(R) with Costco, the fifth largest retailer in the world
-- Q3 saw our first new customer in Canada, Prairie Naturals,
who will launch a SlimBiome (R) based powder in Q4 2023
-- We have reached agreement with Boots pharmacies to launch
SlimBiome (R) products online in Q1 2024 (announced on 21 September
2023)
-- A further 9.7 metric tonnes of SlimBiome (R) has been taken
from stock held by distributors for our two largest partners up to
August 2023. Once this stock overhang is cleared this should have a
material impact on reportable revenue
Stephen O'Hara, CEO of OptiBiotix, commented: "The focus for
2023 has been on moving the business to profitability by a
reduction in costs, a focus on existing partners returning to
forecast, bringing in new partners particularly in the USA and
Asia, and expanding e-commerce channels to reduce partner
dependency. Good progress has been made in each of these areas.
This is all part of plans for each business unit (USA, India,
Ecommerce, B2B) to reach profitability, at least on a monthly basis
by the end of the calendar year.
"The aim for the second half of the year is to maintain our
focus on managing costs, growing sales and closing out ongoing
discussions with a number of larger partners across first and
second-generation products to ensure a return on investment from
the expansion of our commercial and business development teams. We
are particularly excited about our second-generation products
approaching commercialisation given their uniqueness in the
marketplace. Our sweet prebiotic fibres, called SweetBiotix(R)
create the opportunity to replace unhealthy calorific and
cariogenic sugars with healthy fibres in a wide range of food and
beverage products. With growing health concerns over traditional
sugars and sweeteners, the commercialisation of SweetBiotix(R)
meets a large global market need. After many years of hard work we
are equally pleased at the s ignificant progress we have made in
2023 in the manufacturing scale up our microbiome modulators which
selectively enhance the growth rate of specific types of bacteria
and create the potential for targeted treatment of a range of human
diseases. We believe these unique products, individually and
collectively, offer shareholders the potential for a significant
enhancement in the value of the Company.
"The Group has no debt, a strong balance sheet, and retains
significant exposure to the considerable growth potential of the
microbiome through its shareholdings in ProBiotix Health plc and
SkinBioTherapeutics plc."
This announcement contains information which, prior to its
disclosure, was considered inside information for the purposes of
the UK Market Abuse Regulation and the Directors of the Company are
responsible for the release of this announcement.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Company's control, are difficult to
predict, and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security
holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the
date of this announcement. The forward-looking statements made in
this announcement relate only to events as of the date on which the
statements are made. The Company will not undertake any obligation
to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement
except as required by law or by any appropriate regulatory
authority.
For further information, please contact:
OptiBiotix Health plc www.optibiotix.com
Neil Davidson, Chairman Contact via Walbrook below
Stephen O'Hara, Chief Executive
Cairn Financial Advisers LLP (NOMAD) Tel: 020 7213 0880
Liam Murray / Jo Turner / Ludovico Lazzaretti
Peterhouse Capital Limited (Broker) Tel: 020 7220 9797
Duncan Vasey / Lucy Williams
Walbrook PR Ltd Mob: 07876 741 001
Anna Dunphy
Chairman's and Chief Executive's Statement
After a challenging 2022 our focus in 2023 has been on moving
the Company towards profitability. We believe we will achieve this
by a reduction in central costs and by the promotion of sales, both
direct to consumers via e-commerce channels and through our
existing partners delivering on forecasts and bringing in new
customers, particularly in the USA and Asian markets. There has
been progress in each of these areas in the first six months of
2023, and in particular since March 2023 when we initiated a number
of changes to the management team.
This focus has resulted in a substantial increase in turnover
(195%) and gross profit (154%) and a reduction in administration
expenses (17.3%). This has led to a fall in our operating loss
(28%) for the first six months of the year. Whilst encouraging,
it's only a first step, and our focus remains on reaching
profitability by broadening our customer base in more territories,
building new partnerships with larger companies particularly in the
USA and Asia, and controlling costs. This will create a more robust
business for the future and will reduce the risk of revenues in
future accounting periods being impacted by individual partners
delaying launches, or by timing differences in restocking.
Strategic overview
Whilst our immediate focus is on reaching profitability this
takes place within a strategic framework of:-
-- Focusing on a number of large partners in key strategic
markets, particularly the USA and Asia;
-- Improving our sales mix and margins by moving increasingly
from ingredient sales to the sale of finished products, both
through larger partners and direct-to-consumer through our own
online store and other outlets such as Tmall.com in Asia and
Amazon;
-- Building first-generation product portfolio in weight
management and extending our technology into new channels such as
sports nutrition with LeanBiome(R), and new product areas such gut
and digestive health with WellBiome(R);
-- Progressing the commercialisation of our second-generation
products, SweetBiotix(R) and Microbiome Modulators
The first phase of strategy was to establish the credibility of
our science and brands and the sustainability of the business
through an initial focus on building sales of our first-generation
products ( SlimBiome(R), LP(LDL) (R)) through business-to-business
deals with multiple partners principally in Europe. The Company
made rapid sales progress with combined sales of prebiotic and
probiotic first-generation products of GBP1.5m (2020) and GBP2.2m
(2021) and both the Probiotic (now ProBiotix Health plc) and
Prebiotic trading businesses being EBITDA profitable in both years.
SlimBiome(R) now has three clinical studies, health claims in
numerous territories around the world, an extensive international
IP portfolio, multiple awards, and accounts with well-known
national (Holland and Barrett), and international brands
(Myprotein). This has allowed us to extend our SlimBiome(R) brand
into new territories (Asia, USA), expand into the sports nutrition
channel, and launch a patented gut and digestive health product,
WellBiome(R).
Our strategic focus is now turning to the approaching
commercialisation of the SweetBiotix(R) and Microbiome modulator
family of products which offers shareholders the potential for
significant value enhancement. 2023 has seen significant progress
by both partners in the commercial scale production of
SweetBiotix(R), with final product taste tested and accepted by our
US partner. Liquid and freeze-dried products are undergoing
independent structural analysis and expert panel taste testing to
determine sweetness, off tastes, aftertastes etc when compared to
sucrose and other products after which we can start partner
application development and launch plans. In the meantime, our
partners are undergoing early consumer testing as they prepare for
launch.
All these actions increase the scale of the opportunity within
OptiBiotix and our ability to deliver sustained growth for
shareholders in the years ahead.
Commercial and scientific overview
Since the beginning of the current financial year we have:-
-- Invested significantly in new e-commerce channels, including
Amazon in the UK, and Walmart in the USA, as well as Tmall.com in
China. This has led to good sales growth which with continued
investment we anticipate will continue throughout 2023 and
beyond.
-- Shifted our commercial focus to selling SlimBiome(R) Medical
sachets in Europe and SlimBiome(R) shots in India and the Gulf
states. These are designed to be consumed before meals and help
users manage their weight by making consumers feel fuller for
longer and reducing cravings for sweet and savoury snacks. This is
a highly differentiated product which leverages growing market
interest in injectable appetite control drugs like semaglutide.
SlimBiome(R) Medical can be used with any weight management plan or
calorie restriction plan and complements rather than competes in a
crowded marketplace. The product enjoys high margins and became a
top-selling line on Amazon UK in 2023 within its market
segment.
-- Re-engaged with major partners that underperformed against
our sales expectations in 2022, leading to:
-- A significant new investment in marketing by Optipharm in
Australia, coupled with the launch online of their Optislim and
Optiman ranges containing our OptiBiome (R) prebiotic fibre.
-- New orders from both The Hut Group and Holland & Barrett in the UK.
-- A substantial increase in the number of Apollo pharmacies in
India and Nahdi pharmacies in Saudi Arabia selling GoFigure(R)
products.
-- Successfully launched new products, including our
reformulated gut and digestive health WellBiome(R) functional fibre
and mineral blend, which has been made available via our own online
store and more recently on Amazon UK.
-- Recruited three new partners in Asia who have all placed
initial orders for SlimBiome and a major US weight management
brand, with which we will be launching during the second half of
2023, initially in Europe and later in the USA.
-- Published the results of a third human study on SlimBiome(R)
which demonstrated statistically significant benefits to appetite
and hunger regulation, with no safety, compliance or tolerance
issues reported by the participating volunteers. This study
underlines the effectiveness of a single dose of SlimBiome(R) in
delivering hunger-free weight loss by non-invasive means. This
study was timely given the growing consumer, media and
pharmaceutical company interest in this field following NICE'S
approval of the injectable drug semaglutide.
North America Sales and Business Development
We have a strong sales pipeline in North America and the USA
made up of small, medium size, and a number of large US corporates
(including a GBP9bn Muliti Level Marketing company -MLM) that offer
opportunities for sales growth in 2023 and beyond. The Company has
received a number of orders from USA and Canadian partners who are
owners of leading weight management or sports nutrition brands in
the USA. We expect further orders in H2 from our pipeline of
interested partners.
We continue to advance projects and expand our pipeline with
North American companies with the US business looking to contribute
$287k of sales in its first full year of commercial operation. The
Company will be exhibiting its SlimBiome(R), LeanBiome(R), and
Wellbiome(R) products at Supply Side West, USA, in November 2023
with a view to progressing further opportunities in this
market.
Consumer Health and Ecommerce sales
The Consumer Health Division is growing rapidly increasing sales
by 65% in Q2 compared to Q1 and in the first 6 months of 2023 has
already achieved higher sales than FY 2022. Amazon UK has been
instrumental in achieving such success due to the increase in the
customer base. The Company has successfully moved to Fulfilment By
Amazon model (FBA). This model has allowed customers to receive
faster delivery through Prime accounts. Slimbiome (R) is
consistently in the top best sellers for anti-appetite-suppressants
and achieved the highest sales in online history during Prime month
in July 2023.
The key to growth is to expand our reach to customers via
various channels globally (Amazon Germany, United Arab Emirates
(UAE) and India) and to widen our product portfolio and increase
brand awareness.
New customers such as Amazon UAE terms have been agreed and
Slimbiome (R) , and Wellbiome (R) , and our gummies are being
listed. Amazon Kingdom of Saudia Arabia (KSA) will follow suit as
they have observed our strong presence in Nahdi Pharmacies in the
territory. Amazon India has been identified as a huge potential and
the Amazon account has been created. Next steps include getting the
products listed ready for a strong sales push in Q4.
Our China business has seen our highest month of sales on Tmall
in August 2023 and we envisage an even higher month in September
2023. This can be attributed to the work done with local KOL
influencers in the region and a strategic move to sell more on the
TikTok platform. Tmall has a large event in November 2023 which
OptiBiotix will be participating in and should encourage further
sales.
To widen our product portfolio, in Q4 2023 will bring new
products including soups and porridges onto our own platform and
subsequently to Amazon. By adding further to the range, this will
allow an increase in average order value online and compensate for
the peaks and troughs in the weight management cycle.
Competitor analysis of our WellBiome(R) product has indicated
the Consumer Health Division needs to increase awareness through
social channels and is currently focusing on recruiting
influencers. With the increased awareness, our division will have
more visits, brand recognition and most importantly sales.
Competitors such as Symprove have sales of up to GBP15 million per
annum with a heavy reliance on Influencers/social media. Based on
our analysis we have competitive advantage on price and product
including on pack health claims.
A competitor analysis for Wellbiome (R) has indicated value in a
change in positioning from healthy ageing to gut and digestive
health which will allow us to attract more customers. We have
already begun targeting competitors with keywords/ads and have
listed successfully with Amazon UK on FBA. We will follow a similar
path with Slimbiome (R) in the months ahead.
The Consumer Health Division has the advantage of receiving
online sales income immediately and allows more control of our
brand/IP/messaging and less reliance on distributors to grow the
brand.
OptiBiotix Health India
OptiBiotix Health India ("OHI") was formed in November 2021 as a
mid to long term strategic investment in the world's most populous
nation forecast to have the highest population of medium to high
level income customers in the world. The formation of OHI has
helped OptiBiotix avoid high import taxes and control the purchase
and sale of ingredients (SlimBiome(R)) and final product
(GoFigure(R)) manufactured and sold in India.
After a slow start following the launch of products with Apollo
in September 2022 we are now seeing momentum increase with 529
stores in major cities now selling GoFigure products with the aim
of 1000 stores by year end. This has helped sales grow by by 500%
in the last 5 months. These increased sales will not be reflected
in H1 but will impact on restocking requirements in H2 when Apollo
have agreed to extend the product range. Apollo carried out a
consumer survey which showed:-
-- There was a 87% customer return rate of customers buying GoFigure(R) products
-- There were 23% new customers to Apollo pharmacies who just bought GoFigure(R) products
This customer feedback is consistent with feedback from THG who
gained 40% new customers with the introduction of LeanBiome (R) to
their Myprotein (R) product range. These launch experiences
transform the proposition in commercial discussions with new
partners as it demonstrates our products customer appeal and its
ability to attract new and returning customers.
The business in India has a strong pipeline with emerging and
leading players in weight management and sports nutrition and if
launches go to plan, we would anticipate sales in the region of
GBP130k this financial year.
Results
OptiBiotix results for the six months ended June 30 2023 are set
out below. These results are for the Group's new structure
following the listing of ProBiotix Health (PBX) plc on the AQSE
Growth Market on 31 March 2022 with PBX costs and revenues no
longer included from that date. When making comparisons with 2022,
it should be noted that H1 2022 accounts included costs and
revenues for the combined group (ProBiotix and OptiBiotix) up to
the end of March 2022.
The results show revenue from continuing operations for the six
months of GBP351k (H1 2022: GBP119k), a 195% increase in sales. 85%
of this income was received in the second quarter (April to June
2023) following changes to the leadership team. Administration
expenses are down 17% (H1 2023: GBP918k, H1 2022: GBP1,108k)
reflecting cost saving measures and recovery of some of the debt
provision reported in 2022 accounts. This includes a proportional
settlement payment to the departing CEO, Rene Kamminga. There is a
GBP286k (28%) reduction in operating loss, from GBP1,046k in 2022
to GBP760k in 2023 which will reduce further with the full year
effect of cost improvement measures including removing Cenkos as
joint broker, the departure of Rene Kamminga in March 2023, and the
reduction of the board from four to two non-executives in July
2023. As in previous years, there was no contribution in this
period from licence or royalty payments which tend to be received
in the second half of the year.
The Company has a healthy balance sheet with gross assets of
GBP9.9m (31 December 2022: GBP11.5m) with circa GBP893k cash (31
December 2022: GBP1.1m) at the end of June 2023. Once R&D tax
credits are claimed and recoverable VAT repayments are added, the
balance would be GBP1.02m (31 December 2022: GBP1.24m).
Post period end, the Group generated gross proceeds of GBP399k
from the sales of SBTX shares.
The Board senior management and advisers
The Board took decisive action in December 2022 and in H1 2023
to reduce Board, management and advisory costs in order to ensure
each part of the business and subsequently the Group achieve
operational profitability as soon as possible. These actions
included the termination of joint brokerage with Cenkos Securities
plc at the end of March 2023, the stepping down of Rene Kamminga,
CEO of OptiBiotix Ltd, who left the business on 28 February 2023,
and a voluntary 20% reduction in all directors' salaries from 1
January 2023. With twice as many non-executive directors as
executive directors Stephen Hammond and Chris Brinsmead agreed to
step down as Non-executive directors at the Company's Annual
General Meeting in July 2023. The overall aim of the measures was
to reduce cost throughout 2023 and beyond.
We anticipate further restructuring of the board and management
team of OptiBiotix as ProBiotix Health plc develops its
independence and we reduce the number of senior employees currently
shared with ProBiotix Health plc under shared service
agreements.
Looking ahead, the focus of the Company will be on investing in
areas that offer the highest return. To support that process and
ensure a focus on profitability the Company is developing profit
and loss metrics for each part of the business with the aim of each
area (USA, India, Ecommerce, B2B) reaching profitability, at least
on a monthly basis by the end of the calendar year.
Outlook
After a challenging 2022 the Company took decisive action to
reduce costs and focus on sales and bringing in new customers,
particularly in the USA and Asian markets. There has been progress
in each of these areas which has been reflected in much improved
results. These changes, further sales growth, full year cost
reductions, and income from licence or royalty payments which tend
to be received in the second half of the year should help the
Company on its path to return to the levels of growth and EBITDA
profitability achieved in 2020 and 2021. However, this is only the
start and the Company must continue to bring in new partners, build
on line sales in more territories, and launch its second generation
products if it is to continue this upward trajectory.
The Board recognises that whilst sales in H1 were strong it is
working in a very volatile external environment and until it
increases its number of partners it is very reliant on sales
performance of a limited number of large partners where timing
differences in restocking large orders can have a material impact
on reporting revenues in that accounting period. To mitigate this
risk the Company has sought to increase the number of partners
buying its products, of which Boots and Costco are good examples,
and build its e-commerce presence in multiple territories to create
a more robust business for the future.
OptiBiotix is operating in an exciting and evolving market place
with gut health and modulation of the human microbiome attracting
ever-increasing interest as the potential solution to a wide and
growing range of life-style related health challenges. Unique,
innovative products take time to gain market acceptance and our
products are no exception. We believe their strong science,
clinical studies, and broad IP portfolio together with the industry
awards and great customer reviews are starting to attract growing
international recognition and with this more sales opportunities.
Successful launches with established national and international
retailers such as Holland and Barett, Europe's largest health and
wellness retailer with over 1,600 stores in 18 countries across the
world, gives our product credibility furthering sales opportunities
in other territories. This has changed discussions from the science
to commercial discussions on which products to launch and timings
of launch. The agreements with Boots, Costco, and a large USA
sports nutrition brand in the last few months are good examples of
this and if successful have the potential to contribute
significantly to revenues in 2024 and beyond.
Our early success in the USA and Asian markets with new
customers support this proposition with initial sales suggesting
high growth potential in these markets. This is supported by the
credibility of our science and success stories with partners like
THG and Apollo which demonstrates our products customer appeal and
its ability to attract new and returning customers.
We are confident that our strategy will continue to deliver
sales growth in 2023 whilst the approaching commercialisation of
our second-generation SweetBiotix (R) family of products and
microbiome modulators offer exciting potential for future growth.
We believe the launch of either of these products will be
transformational for the Company and offer shareholders the
potential for a significant enhancement in the value of the
Company.
This is in addition to the Company having a continued exposure
to the considerable growth potential in probiotics and skincare
through the Group's shareholdings in ProBiotix Health plc and
SkinBioTherapeutics plc.
N Davidson and S O'Hara
27 September 2023
Consolidated Statement of Comprehensive Income
For the six months to 30 June 2023
6 months to 6 months to Year to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Continuing operations GBP'000 GBP'000 GBP'000
Revenue 351 119 457
Cost of sales (193) (57) (213)
-------------- -------------- --------------
Gross Profit 158 62 244
Share based payments - (6) (11)
Depreciation and amortisation (93) (117) (224)
Other administrative costs (825) (985) (2,498)
-------------- -------------- --------------
Total administrative expenses (918) (1,108) (2,733)
-------------- -------------- --------------
Operating loss (760) (1,046) (2,489)
Finance income / (costs) - - -
Share of (loss)/profit
from associate (226) 91 (83)
Loss on fair value of investments (1,066) (6,788) (8,620)
Profit on disposal of investments 198 - 16
Profit on disposal of subsidiary - 21,647 21,647
Provision against associate
valuation - - (8,030)
-------------- -------------- --------------
Profit/(Loss) before Income
tax (1,854) 13,904 2,441
Income tax 8 12 146
-------------- -------------- --------------
(Loss)/Profit for the
period (1,846) 13,916 2,587
Other Comprehensive Income - - -
-------------- -------------- --------------
Total comprehensive income
for the period (1,846) 13,916 2,587
Total comprehensive income
attributable to the owners
of the group (1,846) 13,916 2,587
Dividends - (10,258) -
(1,846) 3,658 2,587
Earnings/(loss) per share
Basic & Diluted - pence 4 (2.09)p 4.15p 2.93p
Consolidated Statement of Financial Position
As at 30 June 2023
Notes As at As at As at
30 June 2023 30 June 2022 31 December
Unaudited Unaudited 2022
Audited
ASSETS GBP'000 GBP'000 GBP'000
Non-current assets
Intangibles 1,463 2,233 1,540
Property, plant & equipment - 2 -
Investments 5 3,711 6,761 5,022
Investment is associate 5 2,903 11,333 3,129
-------------- -------------- --------------
8,077 20,329 9,691
-------------- -------------- --------------
CURRENT ASSETS
Inventories 179 128 178
Trade and other receivables 666 434 521
Current tax asset 106 68 106
Cash and cash equivalents 893 1,509 1,052
-------------- -------------- --------------
1,844 2,139 1,857
-------------- -------------- --------------
TOTAL ASSETS 9,921 22,468 11,548
EQUITY
Shareholders' Equity
Called up share capital 6 1,824 1,760 1,824
Share premium 2,958 2,545 2,958
Share based payment reserve 939 933 939
Merger relief reserve 1,500 1,500 1,500
Retained Earnings 1,838 15,014 3,684
-------------- -------------- --------------
Total Equity 9,059 21,752 10,905
-------------- -------------- --------------
LIABILITIES
Current liabilities
Trade and other payables 514 255 278
-------------- -------------- --------------
514 255 278
-------------- -------------- --------------
Non - current liabilities
Deferred tax liability 348 461 365
-------------- -------------- --------------
348 461 365
-------------- -------------- --------------
TOTAL LIABILITIES 862 716 643
-------------- -------------- --------------
TOTAL EQUITY AND LIABILITIES 9,921 22,468 11,548
Consolidated Statement of Changes in Equity
For six months to 30 June 2023
Called Share Share-based Non Merger Retained Convertible Total
up premium Payment controlling Relief Earnings Loan note Equity
Share reserve Interest Reserve
Capital
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ -------------- -------------- ------------ ------------ ------------ -------- --------------
Balance at
31 December
2021 1,759 2,537 927 35 1,500 11,320 93 18,172
Profit for
the period - - - - - 13,916 - 13,916
Dividends - - - - - (10,258) - (10,258)
Transfer on
loss of
control - - - - - - (93) (93)
Share issues 1 8 - - - - - 9
Transfer
within
reserves - - - (35) - 35 - -
Share based
payment - - 6 - - - - 6
------------ -------------- -------------- ------------ ------------ ------------ ------------ --------------
Balance at
30 June
2022 1,760 2,545 933 - 1,500 15,014 - 21,752
------------ -------------- -------------- ------------ ------------ ------------ ------------ --------------
Loss for the
period - - - - - (11,330) - (11,330)
Fundraising
commission - (24) - - - - - (24)
Share issues 64 437 - - - - - 501
share based
payment - - 6 - - - - 6
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at
31 December
2022 1,824 2,958 939 - 1,500 3,684 - 10,905
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Loss for the
period - - - - - (1,846) - (1,846)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at
30 June
2023 1,824 2,958 939 - 1,500 1,838 - 9,059
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Consolidated Statement of Cash Flows
For the six months to 30 June 2023
Notes 6 months 6 months Year
to to to
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Reconciliation of loss
before income tax to cash
outflow from operations
Operating loss (760) (1,046) (2,489)
Decrease/ (Increase) in
inventories (1) (36) (76)
(Increase)/decrease in trade
and other
receivables (144) 658 1,116
(Decrease)/increase in trade
and other
payables 236 (211) (19)
Share Option expense - 6 11
Amortisation of patents 92 118 224
------------ ------------ ------------
Net cash outflow from operations (577) (512) (1,233)
Tax paid (9) 98 124
------------ ------------ ------------
Net cash outflow from operating
activities (586) (414) (1,109)
Cash flows from investing
activities
Purchase of intangible assets (15) (58) (168)
Net cashflow re disposal
of subsidiary - (35) (188)
Proceeds on disposal of
investments 442 - 25
------------ ------------ ------------
Net cash (outflow)/inflow
from investing activities 427 (507) (331)
------------ ------------ ------------
Cash flows from financing
activities
Share issues - 9 485
------------ ------------ ------------
Net cash inflow from financing
activities - 9 485
------------ ------------ ------------
Increase/(decrease) in
cash and equivalents (159) (498) (955)
Cash and cash equivalents
at beginning of year 1,052 2,007 2,007
------------ ------------ ------------
Cash and cash equivalents
at end of year 893 1,509 1,052
Notes to the Half Yearly Report
For the six months to 30 June 2023
1. General Information
Optibiotix Health Plc is a com pany incorp orated and d omiciled
in England and Wales. The com pan y 's registered office is in
York. The com pany is listed on the AIM market of the Lo nd on
Stock Exchange (ticker: OPTI).
The financial information set out in this Half Yearly report
does not constitute statutory accounts as defined in Section 434 of
the Companies Act 2006. The group's statutory financial statements
for the period ended 31 December 2022, prepared under UK - adopted
International Financial Reporting Standards ("IFRS"), have been
filed with the Registrar of Companies. The auditor's report on
those financial statements was unqualified and did not contain
statements under Sections 498(2) and 498 (3) of the Companies Act
2006.
Copies of the annual statutory accounts and the Half Yearly
report can be found on the Company's website at
http://www.optibiotix.com/ .
2. Basis of preparation and significant accounting policies
This Half Yearly report has been prepared using the historical
cost convention, on a going concern basis and in accordance with UK
- adopted International Financial Reporting Standards ("IFRS") as
adopted by the United Kingdom.
The interim financial statements have been prepared in
accordance with the accounting policies set out in the Annual
Report and Accounts for the year ended 31 December 2022.
3. Segmental Reporting
In the opinion of the directors, the Group has one class of
business, in three geographical areas being that of identifying and
developing microbial strains, compounds and formulations for use in
the nutraceutical industry. The Group sells into four highly
interconnected markets, all costs assets and liabilities are
derived from the UK location.
Revenue analysed by market
6 months to 6 months Year ended
30 June to 31 December
2023 30 June 2022
2022
GBP'000 GBP'000 GBP'000
Probiotics - 24 24
Functional Fibres 351 95 433
------------ ------------ ------------
351 119 457
Following the loss of control of Probiotix Health plc on 31
March 2022, all group revenues since then have been derived from
functional fibres.
Revenue analysed by geographical market
Period ended 6 months Year ended
30 June to 31 December
2022 30 June 2022
2022
GBP'000 GBP'000 GBP'000
UK 142 48 136
US - 15 100
India - - 61
Rest of world 209 56 160
------------ ------------ ------------
351 119 457
During the reporting period one customer represented GBP116,256
(33.1%) of Group revenues. (June 2022: one customer generated
GBP49,668 representing 41.8% of Group revenues)
4. Earnings per Share
Basic earnings per share is calculated by dividing the earnings
attributable shareholders by the weighted average number of
ordinary shares outstanding during the period.
Reconciliations are set out below:
6 months to
30 June 2023
Basic and diluted EPS Earnings Weighted average Profit per-share
Number of shares
GBP'000 No. Pence
Basic and diluted EPS (1,846) 88,279,952 2.09
6 months to
30 June 2022
Earnings Weighted average Profit per-share
Number of shares
GBP'000 No. Pence
Basic and diluted EPS 3,658 88,047,596 4.15
Year to 31
December 2022
Earnings Weighted average Profit per-share
Number of shares
GBP'000 No. Pence
Basic and diluted EPS 2,587 88,279,952 2.93
As at 30 June 2023 there were 7,182,907 outstanding share
options.
5. Investments
Available for sale investments
Carrying value GBP'000
At 31 December 2021 13,651
Revaluations (6,890)
------------
Carrying amount
At 30 June 2022 6,761
Revaluations (1,730)
Disposal of shares (9)
------------
Carrying amount
At 31 December 2022 5,022
Disposal of shares (244)
Revaluations (1,067)
------------
3,711
Investment in associates
Carrying value GBP'000
At 31 December 2021 -
Additions 11,242
Share of profit 91
------------
Carrying amount
At 30 June 2022 11,333
Share of loss (174)
Impairment in the period (8,030)
------------
Carrying amount 3,129
At 31 December 2022
Share of loss (226)
------------
Carrying amount 2,903
At 30 June 2023
Total value of investments at 30
June 2023 6,614
6. Share Capital
Issued share capital comprises:
6 months 6 months Year to
to 30 June to 30 June 31
2023 2022 December
Unaudited Unaudited 2022
Audited
GBP'000 GBP'000 GBP'000
Ordinary shares of 2p
each
87,940,601 1,824 - 1,824
Ordinary shares of 2p - 1,760 -
each
88,065,601
-------------- -------------- --------------
1,824 1,760 1,824
7. Post balance sheet events
On 26 July 2023 Stephen Hammond and Chris Brinsmead stepped down
from the Board.
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END
IR SEMFIMEDSESU
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