TIDMPXS
RNS Number : 0321T
Provexis PLC
30 December 2016
30 December 2016 Provexis plc
UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER
2016
Provexis plc ("Provexis" or the "Company"), the business that
develops, licenses and sells the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, announces its
unaudited interim results for the six months ended 30 September
2016.
Key highlights
-- Total revenue for the period GBP123k (2015: GBP41k), a
threefold increase from the prior year. Revenue for the half year
to September 2016 exceeds revenue for the full year to March
2016.
-- Revenue from profit sharing Alliance for the period GBP88k, a
115% year on year increase (2015: GBP41k).
-- Over 50 regional consumer healthcare brands containing
Fruitflow(R) now launched by DSM's customers, with further regional
brands launched through DSM's distributor channels. An increasing
number of further commercial projects have been initiated by DSM
with prospective customers, including some prospective customers
which are part of global businesses.
-- Strategic collaboration agreement announced in November 2016
for Fruitflow(R) between DSM and BY-HEALTH, a GBP2bn listed Chinese
dietary supplement business. Collaboration will focus on the
development of new products that contribute to cardiovascular
health, to include evaluation and testing procedures to accord with
Chinese technical and regulatory standards.
-- Second stage of the Company's blood pressure pilot study for
Fruitflow(R) announced, indicating that Fruitflow(R) significantly
lowered blood pressure in waking subjects; encouraging blood
pressure results are expected to have a positive effect on current
and future commercial negotiations for Fruitflow(R).
-- Fruitflow(R) comparison study with aspirin published in the
European Journal of Clinical Nutrition, providing strong support
for the use of Fruitflow(R) in the primary prevention of
cardiovascular disease.
-- Key Opinion Leaders' roundtable event for Fruitflow(R) took
place in London in September 2016, promoting Fruitflow(R) across
key digital and other mainstream media channels; event is being
supported by a broader consumer PR campaign for the Fruitflow(R) +
Omega-3 capsules product.
-- Further detailed scientific study for Fruitflow(R) published
in the European Journal of Nutrition in July 2016, further study
publications are envisaged.
-- Company launched its Fruitflow(R) + Omega-3 dietary
supplement product in June 2016, a two-in-one supplement in an easy
to take capsule supporting healthy blood flow and normal heart
function. Product achieved sales of GBP7k in the period through the
new e-commerce website www.fruitflowplus.com, further sales channel
opportunities are currently being explored.
-- Company raised GBP249k through two placings in August and
September 2016 with no commissions or expenses payable.
-- Underlying operating loss* reduced to GBP128k (2015: GBP196k), a record low for the Group.
-- Cash GBP243k at 30 September 2016 (2015: GBP350k). Based on
its current level of cash it is expected that the Group will need
to raise further equity finance in the coming four months, which
will help fund some further sales channel opportunities which are
currently being explored for the Group's Fruitflow(R) + Omega-3
dietary supplement product.
*before share based payments of GBP13k (2015: GBP34k), as set
out on the face of the Consolidated Statement of Comprehensive
Income
Provexis Executive Chairman Dawson Buck commented:
"We are pleased to be able to report on a period of significant
progress for the Company, to include:
-- A threefold increase in reported revenue to GBP123k;
-- The announcement of a strategic collaboration agreement for
Fruitflow between DSM and Chinese listed BY-HEALTH, focussing on
the development of new products that contribute to cardiovascular
health in China;
-- The second stage of the Company's blood pressure pilot study
for Fruitflow which indicated that Fruitflow significantly lowered
blood pressure in waking subjects;
-- A Fruitflow comparison study with aspirin published in the
European Journal of Clinical Nutrition, providing strong support
for the use of Fruitflow in the primary prevention of
cardiovascular disease;
-- A key Opinion Leaders' roundtable event for Fruitflow which
took place in London in September 2016;
-- A further detailed scientific study for Fruitflow which was
published in the European Journal of Nutrition in July 2016.
-- The launch of the Company's Fruitflow + Omega-3 dietary
supplement product in late June 2016, which is expected to provide
the Company with an additional long term income and profit
stream.
The Company expects that these strongly positive announcements
and initiatives will have a beneficial effect on the current and
future commercial prospects for Fruitflow. The Company is well
placed to maximise the commercial opportunities arising from these
developments for Fruitflow and the Provexis business.
We remain positive about the outlook for the business for the
second half of the year and beyond."
This announcement contains inside information.
For further information please contact:
Provexis plc Tel: 07490 391888
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam
Chairman's statement
The Company has had a strong and very active first six months of
the year, and it is pleasing to report a more than threefold
increase in revenue for the period.
The Company's Alliance partner DSM Nutritional Products has
continued to develop the market actively for Fruitflow(R) in all
global markets. More than 50 regional consumer healthcare brands
have now been launched by direct customers of DSM, and a number of
further regional brands have been launched through DSM's
distributor channels.
Total revenues for the period were GBP123k (2015: GBP41k), a
200% increase from the prior year. Revenue for the half year to
September 2016 exceeds revenue for the full year to March 2016.
Revenues accruing to the Company for the period from its profit
sharing Alliance for Fruitflow(R) were GBP88k, a 115% year on year
increase (2015: GBP41k).
The Company launched its Fruitflow(R) + Omega-3 dietary
supplement product in late June 2016 and the product achieved sales
of GBP7k in the period through the new e-commerce website
www.fruitflowplus.com. The rate of sales for the product has
increased since the period end.
The balance of revenue recognised in the period reflects amounts
in excess of GBP28k (2015: GBPNil) received for marketing support;
the related marketing expenditure is included as part of
administrative costs.
The underlying operating loss for the period was GBP128k (2015:
loss of GBP196k), a 35% year on year reduction and a record low for
the Group, reflecting significantly higher revenues set against the
Group's low overhead licensing business model.
An increasing number of further commercial projects have been
initiated by DSM with prospective customers, including some
prospective customers which are part of global businesses, with
good prospects for these projects to be launched as consumer
products. Interest in the technology exists in all major global
markets.
The Company announced in November 2016 that DSM had entered into
a strategic collaboration agreement for Fruitflow(R) with BY-HEALTH
Co., Ltd, a substantial listed Chinese dietary supplement
business.
The strategic collaboration agreement between DSM and BY-HEALTH
will focus on the development of new products that contribute to
cardiovascular health, to include the establishment of relevant
evaluation and testing procedures to accord with Chinese technical
and regulatory standards.
There are already more than 230m people in China who are thought
to have cardiovascular disease and a significant increase in
cardiovascular events is expected in China over the course of the
next decade based on population aging and growth alone. The Company
believes that Fruitflow(R) has the potential to play an important
role in primary prevention in the Chinese market.
Fruitflow(R) and Blood Pressure - Collaboration with University
of Oslo
In November 2014 the Company signed a two stage collaboration
agreement with the University of Oslo seeking to undertake further
research into the relationship between Fruitflow(R) and blood
pressure regulation. Recent work undertaken by the University has
shown that Fruitflow(R) has a potential new bioactivity, leading to
blood pressure lowering effects which would be of relevance to a
large number of consumers and patients with a wide range of
cardiovascular conditions.
The first stage of the collaboration work, completed in 2015,
was focussed on developing the science and the key results from
this stage were very encouraging, with strong evidence from the
laboratory based work that a standard 150mg dose of Fruitflow(R) in
powder format has the potential to give a clinically relevant
reduction in systolic blood pressure.
The Company and the University completed the second stage of the
collaboration work in December 2016, which had seen the parties
conduct a small clinical trial in Oslo by way of a proof of
principle study. The study examined the acute effects of different
amounts of Fruitflow(R) in powder format on parameters relating to
blood pressure, such as systolic and diastolic blood pressure, mean
arterial pressure, pulse pressure and heart rate. These blood
pressure related parameters were monitored over a 24-hour period
using ambulatory blood pressure monitoring. Platelet function was
also measured. The trial subjects, who were healthy with no
underlying cardiovascular disease or other conditions likely to
affect blood pressure, received both placebo and Fruitflow(R)
supplements in a blinded crossover design.
Results from the pilot study indicated that a 150mg dose of
Fruitflow(R) in powder format significantly lowered the average
24-hour systolic blood pressure compared to placebo. When the
monitoring time was split into waking and sleeping periods, both
systolic and diastolic blood pressure were significantly lower
after 150mg Fruitflow(R) treatment than after placebo treatment
during the waking period; systolic pressure was also significantly
lower during the sleeping period.
Raised blood pressure is estimated to cause more than 7 million
premature deaths throughout the world each year, and 4.5% of the
disease burden. Treating raised blood pressure by way of achieving
systolic blood pressure < 140 and diastolic blood pressure <
80 has been associated with a 35-40% reduction in the risk of
stroke and at least a 16% reduction in the risk of heart attack
(WHO 2007). The pilot study results therefore show that
Fruitflow(R) may have clinically relevant effects in blood pressure
control.
The University of Oslo's research team was led by Professor Asim
Duttaroy, Group Leader of Chronic Disease at the Faculty of
Medicine, who was the original inventor of Fruitflow(R). Provexis'
work under the collaboration was led by Dr Niamh O'Kennedy, a
research chemist specialising in the field of natural products
chemistry who played a key role in the development of Fruitflow(R),
and the health claim for Fruitflow(R) which was adopted by the
European Food Safety Authority ('EFSA').
Fruitflow(R) and Fruitflow(R) + Omega-3 marketing
initiatives
The Company and DSM are committed to a number of ongoing
scientific and marketing initiatives for Fruitflow(R) and the
Company's Fruitflow(R) + Omega-3 capsules, seeking to extend the
reach of the existing science for Fruitflow(R) and give the
products further global exposure. Scientific and marketing
initiatives include:
Scientific studies
On 23 November 2016 the Company announced the publication of an
important study for Fruitflow(R) in the European Journal of
Clinical Nutrition.
The study, titled 'A randomised controlled trial comparing a
dietary antiplatelet, the water-soluble tomato extract
Fruitflow(R), with 75mg aspirin in healthy subjects' was undertaken
by Provexis with independent statistical analysis by BIOSS, and it
compared the effects of Fruitflow(R) and 75mg aspirin. Interactions
between Fruitflow(R) and aspirin when consumed together were also
studied. A total of 47 healthy subjects completed the trial over a
7-month period.
The study, which is available to view on the Company's website
at
www.provexis.org/wp-content/uploads/2016/12/EJCN-Aspirin-Fruitflow-study-23-Nov-16.pdf
demonstrates that Fruitflow(R) showed up to 30% reduction from
baseline platelet aggregation in each of three different biological
pathways, while a single dose of aspirin caused up to 60% reduction
in a single pathway, with lesser effects on the other two. The
study showed no negative interactions between Fruitflow(R) and
aspirin when consumed together.
The study findings are statistically significant and serve to
demonstrate the potential effectiveness of Fruitflow(R) as a
dietary supplement with a significant effect on blood flow,
suitable for daily use in primary prevention of CVD, and with no
adverse side effects.
The World Health Organization reports that more people die
annually from CVDs than from any other cause, and the US FDA states
that after carefully examining scientific data from major studies,
it has concluded 'the data do not support the use of aspirin as a
preventive medication by people who have not had a heart attack,
stroke or cardiovascular problems, a use that is called 'primary
prevention.' In such people, the benefit has not been established
but risks - such as dangerous bleeding into the brain or stomach -
are still present.'
On 12 July 2016 the Company announced the publication of another
important study for Fruitflow(R) in the European Journal of
Nutrition.
The study, titled 'Fruitflow(R): the first European Food Safety
Authority-approved natural cardio-protective functional ingredient'
includes a scientific summary of the entire Fruitflow(R) project
from its inception and it is expected to be a significant
opportunity to promote Fruitflow(R) further across scientific,
trade customer and consumer channels. The study is available to
view on the Company's website at
www.provexis.org/wp-content/uploads/2016/07/Fruitflow%C2%AE-the-first-European-Food-Safety-Authority-approved-natural-cardio-protective-functional-ingredient-07-Jul-16.pdf
It is envisaged that further study publications for Fruitflow(R)
will be submitted to appropriate scientific journals in due
course.
Key Opinion Leaders' roundtable
The Company conducted a Key Opinion Leaders' roundtable event
for Fruitflow(R) in London on 29 September 2016, with considerable
support from DSM.
The roundtable was focussed on raising awareness of the
importance of blood flow in cardiovascular health, and the
effectiveness of dietary antiplatelets, and it was attended by key
scientists from Provexis and DSM, along with a number of interested
health care professionals with close links to the national media.
The event was recorded with a view to producing two further
promotional videos: a video for Fruitflow(R) targeting prospective
trade customers, and a video for Fruitflow(R) + Omega-3 capsules
targeting prospective consumers which can be seen here
www.youtube.com/watch?v=P3HCSdyupEY&t=71s
The Company and DSM are keen to secure greater medical advocacy
for Fruitflow(R) and the roundtable event forms part of this
strategy. The roundtable event is also being supported by a broader
consumer PR campaign.
Digital marketing strategy
A digital marketing strategy, strongly supported by DSM, is also
in the process of being implemented, seeking to drive and optimise
online leads and sales for the Company's Fruitflow(R) + Omega-3
capsules. The capsules have been promoted across key social media
and other search platforms, to include DSM's key digital
communities and channels.
Other marketing initiatives
Other marketing initiatives for Fruitflow(R) have seen the
product being promoted at several major food ingredient and dietary
supplement trade shows. The product has been featured in numerous
publications and it has been the subject of several trade seminars
and presentations, some of which are available to view in the news
section of the Company's website www.provexis.com.
Fruitflow(R) + Omega-3 dietary supplement product
On 29 June 2016 the Company announced the launch of its new
Fruitflow(R) + Omega-3 dietary supplement product, which is
exclusively available through the Company's new e-commerce website
www.fruitflowplus.com, the product also has a Facebook page at
www.facebook.com/FruitflowPlus
Fruitflow(R) + Omega-3 is a two-in-one supplement in an easy to
take capsule, supporting healthy blood flow and normal heart
function, and it achieved sales of GBP7k in the period. The rate of
sales for the product has increased since the period end, and
further sales channel opportunities for the product are currently
being explored.
The new dietary supplement product is expected to provide the
Company with an additional long term income and profit stream, and
the fruitflowplus.com website will be able to accommodate further
potential Fruitflow(R) combination product derivatives.
Intellectual property
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow(R) as part of the Alliance Agreement
with DSM. We are pursuing a strategy to strengthen the breadth and
duration of our patent coverage to maximise the commercial returns
that can be achieved from the technology. Trade marks were
originally registered in the larger global territories, and new
registrations are typically now sought in additional territories in
response to requests from current or prospective DSM customers for
Fruitflow(R).
In December 2013 British and international patent applications
were filed for the use of Fruitflow(R) in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise, seeking to enhance further the potential of the
technology in the sports nutrition sector. Patents are being sought
in Europe, the US, China and ten other territories, and this patent
application has now entered the national phase, with potential
patent protection out to December 2033.
The Company's patent application for Fruit Extracts, relating to
part of the production process for Fruitflow(R), is now expected to
proceed to grant in Europe in the coming weeks, giving patent
protection out to November 2029.
Crohn's disease intellectual property
The Group continues to maintain the Crohn's disease intellectual
property registered in Provexis (IBD) Limited, a company which is
75% owned by Provexis plc and 25% owned by The University of
Liverpool. The Group continues to investigate further options for
the Crohn's disease project, seeking to maximise its value.
Capital structure and funding
The Company is seeking to maximise the commercial returns that
can be achieved from its Fruitflow(R) technology, and the Company's
cost base and its resources continue to be very tightly managed.
The Company remains keen to minimise dilution to shareholders and
it is focussed on moving into profitability as Fruitflow(R)
revenues increase, but while the Company remains in a loss making
position it will need to raise working capital on occasions.
In June 2015 the Company joined PrimaryBid.com
(www.primarybid.com), the online platform dedicated to equity
crowdfunding for AIM-listed companies, and in July 2015 the Company
announced that it had raised net proceeds of GBP267k through the
new platform.
The Company raised a further GBP249k through two placings in
August and September 2016 outside the PrimaryBid platform, with no
commissions or expenses payable.
The Group has access to future equity financings as potential
additional sources of funding, primarily through an equity
fundraising with the Company's shareholders, or the existing
PrimaryBid.com platform. Based on its current level of cash it is
expected that the Group will need to raise further equity finance
in the coming four months. The funding proceeds which the Company
expects to receive will help the Company fund ongoing promotional
activities for its Fruitflow(R) + Omega-3 dietary supplement
product, to include the further sales channel opportunities which
are currently being explored.
Outlook
We are pleased to be able to report on a period of significant
progress for the Company, to include:
-- A threefold increase in reported revenue to GBP123k;
-- The announcement of a strategic collaboration agreement for
Fruitflow(R) between DSM and Chinese listed BY-HEALTH, focussing on
the development of new products that contribute to cardiovascular
health in China;
-- The second stage of the Company's blood pressure pilot study
for Fruitflow(R) which indicated that Fruitflow(R) significantly
lowered blood pressure in waking subjects;
-- A Fruitflow(R) comparison study with aspirin published in the
European Journal of Clinical Nutrition, providing strong support
for the use of Fruitflow(R) in the primary prevention of
cardiovascular disease;
-- A key Opinion Leaders' roundtable event for Fruitflow(R)
which took place in London in September 2016;
-- A further detailed scientific study for Fruitflow(R) which
was published in the European Journal of Nutrition in July
2016;
-- The launch of the Company's Fruitflow(R) + Omega-3 dietary
supplement product in late June 2016, which is expected to provide
the Company with an additional long term income and profit
stream.
The Company expects that these strongly positive announcements
and initiatives will have a beneficial effect on the current and
future commercial prospects for Fruitflow(R). The Company is well
placed to maximise the commercial opportunities arising from these
developments for Fruitflow(R) and the Provexis business.
We remain positive about the outlook for the business for the
second half of the year and beyond.
Dawson Buck
Chairman
Consolidated statement of
comprehensive income Unaudited Unaudited Audited
Six months ended 30 September
2016 six months six months year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
GBP GBP GBP
Notes
------------------------------- ------ ------------- ------------- ----------
Revenue 123,456 40,908 91,649
Cost of goods (2,278) - -
------------------------------- ------ ------------- ------------- ----------
Gross profit 121,178 40,908 91,649
Selling and distribution
costs (2,929) - -
Research and development
costs (53,092) (93,938) (192,236)
Administrative costs (205,441) (177,172) (354,892)
Underlying operating loss (127,685) (196,045) (385,210)
Share based payment charges (12,599) (34,157) (70,269)
------------------------------- ------ ------------- ------------- ----------
Loss from operations (140,284) (230,202) (455,479)
Finance income 667 1,755 2,768
Loss before taxation (139,617) (228,447) (452,711)
Taxation 6,120 6,040 11,980
Loss and total comprehensive
expense for the period (133,497) (222,407) (440,731)
--------------------------------------- ------------- ------------- ----------
Attributable to:
Owners of the parent (119,161) (207,557) (409,569)
Non-controlling interests (14,336) (14,850) (31,162)
Loss and total comprehensive
expense for the period (133,497) (222,407) (440,731)
--------------------------------------- ------------- ------------- ----------
Loss per share to owners
of the parent
Basic and diluted - pence 3 (0.01) (0.01) (0.03)
------------------------------- ------ ------------- ------------- ----------
Consolidated statement of
financial position Unaudited Unaudited Audited
30 September 2016 30 September 30 September 31 March
2016 2015 2016
GBP GBP GBP
----------------------------------- ------------- ------------- -------------
Assets
Current assets
Inventories 39,705 - -
Trade and other receivables 102,836 78,654 49,561
Corporation tax asset 18,100 11,448 17,388
Cash and cash equivalents 243,178 350,178 189,636
Total current assets 403,819 440,280 256,585
----------------------------------- ------------- ------------- -------------
Total assets 403,819 440,280 256,585
----------------------------------- ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (132,879) (115,230) (113,747)
Total current liabilities (132,879) (115,230) (113,747)
----------------------------------- ------------- ------------- -------------
Net current assets 270,940 325,050 142,838
----------------------------------- ------------- ------------- -------------
Total liabilities (132,879) (115,230) (113,747)
----------------------------------- ------------- ------------- -------------
Total net assets 270,940 325,050 142,838
----------------------------------- ------------- ------------- -------------
Capital and reserves attributable
to
owners of the parent company
Share capital 1,750,818 1,647,068 1,647,068
Share premium reserve 16,648,471 16,503,221 16,503,221
Warrant reserve 26,200 26,200 26,200
Merger reserve 6,599,174 6,599,174 6,599,174
Retained earnings (24,332,598) (24,060,136) (24,226,036)
----------------------------------- ------------- ------------- -------------
692,065 715,527 549,627
Non-controlling interest (421,125) (390,477) (406,789)
Total equity 270,940 325,050 142,838
----------------------------------- ------------- ------------- -------------
Consolidated statement of cash
flows Unaudited Unaudited Audited
30 September 2016 six months six months Year
ended ended Ended
30 September 30 September 31 March
2016 2015 2016
GBP GBP GBP
Cash flows from operating activities
Loss after tax (133,497) (222,407) (440,731)
Net finance income (667) (1,755) (2,768)
Taxation (6,120) (6,040) (11,980)
Share-based payment charge 12,599 34,157 70,269
Changes in inventories (39,705) - -
Changes in trade and other
receivables (53,232) (25,336) 3,623
Changes in trade and other
payables 19,132 1,149 (334)
Total cash outflow from operations (201,490) (220,232) (381,921)
-------------------------------------- ------------- ------------- ----------
Tax credits received 5,408 15,822 15,822
Total cash outflow from operating
activities (196,082) (204,410) (366,099)
-------------------------------------- ------------- ------------- ----------
Cash flow from investing activities
Interest received 624 1,785 2,932
Total cash inflow from investing
activities 624 1,785 2,932
-------------------------------------- ------------- ------------- ----------
Cash flow from financing activities
Proceeds from issue of share
capital 249,000 267,400 267,400
Total cash inflow from financing
activities 249,000 267,400 267,400
-------------------------------------- ------------- ------------- ----------
Net increase / (decrease) in
cash and cash equivalents 53,542 64,775 (95,767)
Opening cash and cash equivalents 189,636 285,403 285,403
Closing cash and cash equivalents 243,178 350,178 189,636
-------------------------------------- ------------- ------------- ----------
Consolidated
statement of
changes in Total
equity Share Share Warrant Merger Retained equity Non- Total
30 September attributable
2016 to owners controlling
capital premium reserve reserve earnings of interests equity
the
parent
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
At 31 March
2015 1,584,846 16,298,043 26,200 6,599,174 (23,886,736) 621,527 (375,627) 245,900
Share-based
charges - - - - 34,157 34,157 - 34,157
Issue of
shares
- PrimaryBid
placing 9
July
2015 62,222 205,178 - - - 267,400 - 267,400
Total
comprehensive
expense for
the period - - - - (207,557) (207,557) (14,850) (222,407)
At 30
September
2015 1,647,068 16,503,221 26,200 6,599,174 (24,060,136) 715,527 (390,477) 325,050
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 36,112 36,112 - 36,112
Total
comprehensive
expense for
the period - - - - (202,012) (202,012) (16,312) (218,324)
At 31 March
2016 1,647,068 16,503,221 26,200 6,599,174 (24,226,036) 549,627 (406,789) 142,838
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 12,599 12,599 - 12,599
Issue of
shares
- placing
8 August 2016 93,333 130,667 - - - 224,000 - 224,000
Issue of
shares
- placing
22 September
2016 10,417 14,583 - - - 25,000 - 25,000
Total
comprehensive
expense for
the period - - - - (119,161) (119,161) (14,336) (133,497)
At 30
September
2016 1,750,818 16,648,471 26,200 6,599,174 (24,332,598) 692,065 (421,125) 270,940
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
1. General information, basis of preparation and accounting
policies
General information
Provexis plc is a public limited company incorporated and
domiciled in the United Kingdom (registration number 05102907). The
address of the registered office is Prospect House, 58 Queens Road,
Reading, Berkshire RG1 4RP, UK.
The main activities of the Group are those of developing and
licensing the proprietary, scientifically-proven Fruitflow(R)
heart-health functional food ingredient.
Basis of preparation
This condensed financial information has been prepared using
accounting policies consistent with International Financial
Reporting Standards in the European Union (IFRS).
The same accounting policies, presentation and methods of
computation are followed in this condensed financial information as
are applied in the Group's latest annual audited financial
statements, except as set out below. While the financial figures
included in this half-yearly report have been computed in
accordance with IFRS applicable to interim periods, this
half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in
IAS 34.
Use of non-GAAP profit measure - underlying operating profit
The directors believe that the operating loss before share based
payments measure provides additional useful information for
shareholders on underlying trends and performance. This measure is
used for internal performance analysis. Underlying operating loss
is not defined by IFRS and therefore may not be directly comparable
with other companies' adjusted profit measures. It is not intended
to be a substitute for, or superior to IFRS measurements of
profit.
The interim financial information does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006 and
has been neither audited nor reviewed by the Company's auditors
Moore Stephens LLP pursuant to guidance issued by the Auditing
Practices Board.
The results for the year ended 31 March 2016 are not statutory
accounts. The statutory accounts for the last year ended 31 March
2016 were approved by the Board on 7 September 2016 and are filed
at Companies House. The report of the auditors on those accounts
was unqualified, contained an emphasis of matter with respect to
going concern, and did not contain a statement under section 498 of
the Companies Act 2006.
The interim report for the six months ended 30 September 2016
can be downloaded from the Company's website www.provexis.com.
Further copies of the interim report and copies of the 2016 annual
report and accounts can be obtained by writing to the Company
Secretary, Provexis plc, Prospect House, 58 Queens Road, Reading,
Berkshire RG1 4RP, UK.
This announcement was approved by the Board of Provexis plc for
release on 30 December 2016.
Going concern
The Group made a loss for the period from operations of
GBP133,497 (2015: GBP222,407) and expects to make a further loss
during the remainder of the year ending 31 March 2017. The total
cash outflow from operations in the period was GBP201,490 (2015:
GBP220,232).
For the year ended 31 March 2016 the Group made a loss from
operations of GBP440,731 (2015: GBP487,753). The total cash outflow
from operations in the year ended 31 March 2016 was GBP381,921
(2015: GBP404,776).
At 30 September 2016 the Group had cash balances of GBP243,178
(2015: GBP350,178).
On 4 June 2015 the Group announced that it had joined
PrimaryBid.com (www.primarybid.com), an online platform dedicated
to equity crowdfunding for AIM-listed companies.
On 29 June 2016 the Group announced the launch of a high quality
dietary supplement product containing Fruitflow(R) and Omega-3
which is being sold initially from a separate, dedicated website
www.fruitflowplus.com on a mail order basis. The new dietary
supplement product is expected to provide the Group with an
additional income and profit stream.
On 2 August 2016 the Group announced that it had raised proceeds
of GBP224,000 via the placing of 93,333,340 new ordinary shares of
0.1p each at a gross 0.24p per share with investors. The placing
shares were admitted to AIM on 8 August 2016.
On 15 September 2016, further to the Company's announcements of
9 June 2016, 29 June 2016, 2 August 2016 and 7 September 2016 the
Group announced that it had raised proceeds of a further GBP25,000
via the placing of 10,416,667 new ordinary shares of 0.1p each at a
gross 0.24p per share with the Company's Chairman Dawson Buck. The
placing shares were admitted to AIM on 22 September 2016.
The directors have prepared projected cash flow information for
a period of more than twelve months from the date of approval of
these financial statements and have reviewed this information as at
the date of these financial statements.
The Group is seeking to maximise the commercial returns that can
be achieved from its Fruitflow(R) technology, and the Group's cost
base and its resources continue to be very tightly managed.
The Group remains keen to minimise dilution to shareholders and
it is focussed on moving into profitability as Fruitflow(R)
revenues increase, but while the Group remains in a loss making
position it will need to raise working capital on occasions.
The Group has access to future equity financings as potential
additional sources of funding, primarily through the Group's
existing PrimaryBid.com platform or by way of a separate equity
fundraising with the Company's shareholders. Based on its current
level of cash it is expected that the Group will need to raise
further equity finance in the coming four months.
The Directors have concluded that the necessity to raise
additional equity finance represents a material uncertainty that
casts significant doubt upon the Group's ability to continue as a
going concern and that should it be unable to raise further funds,
the Group may be unable to realise its assets and discharge its
liabilities in the normal course of business. However, considering
the success of previous fundraisings and the current performance of
the business, the Directors have a reasonable expectation of
raising sufficient additional capital to continue in operational
existence for the foreseeable future. For this reason, they
continue to adopt the going concern basis in preparing the Group's
financial statements.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2016, as
described in those annual financial statements.
2. Segmental reporting
The Directors have determined that only one operating segment
exists under the terms of International Financial Reporting
Standard 8 'Operating Segments', as the Group is organised and
operates as a single business unit.
3. Earnings per share
Basic earnings per share amounts are calculated by dividing the
profit attributable to owners of the parent by the weighted average
number of ordinary shares in issue during the period.
The loss attributable to equity holders of the Company for the
purpose of calculating the fully diluted loss per share is
identical to that used for calculating the basic loss per share.
The exercise of share options would have the effect of reducing the
loss per share and is therefore anti-dilutive under the terms of
IAS 33 'Earnings per Share'.
Basic and diluted loss per share amounts are in respect of all
activities.
There were 118,617,620 share options in issue at 30 September
2016 (2015: 118,617,620) and 10,000,000 warrants (2015: 10,000,000)
in issue that are currently anti-dilutive and have therefore been
excluded from the calculations of the diluted loss per share.
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
Loss for the period attributable
to owners of the parent
- GBP (119,161) (207,557) (409,569)
Weighted average number
of shares 1,674,554,508 1,613,066,952 1,630,067,560
Basic and diluted loss per
share - pence (0.01) (0.01) (0.03)
---------------------------------- -------------- -------------- --------------
There have been no transactions involving ordinary shares
between the reporting date and the date of approval of these
financial statements which would significantly change the earnings
per share calculations shown above.
4. Share capital
On 2 August 2016 the Group announced that it had raised proceeds
of GBP224,000 via the placing of 93,333,340 new ordinary shares of
0.1p each at a gross 0.24p per share with investors. The placing
shares were admitted to AIM on 8 August 2016.
On 15 September 2016 the Group announced that it had raised
proceeds of a further GBP25,000 via the placing of 10,416,667 new
ordinary shares of 0.1p each at a gross 0.24p per share with the
Company's Chairman Dawson Buck. The placing shares were admitted to
AIM on 22 September 2016.
At 30 December 2016, the date of this announcement, the
Company's issued share capital comprises 1,750,818,174 ordinary
shares with voting rights. The Company does not hold any shares in
treasury.
5. Share options
On 30 December 2016 the Company granted a total of 20,000,000
new options over Ordinary Shares ('Options') under the Provexis
2005 share option scheme to certain scientific, sales and marketing
consultants to the Company. The options have an exercise price of
0.92 pence, being the closing mid-market price on 29 December 2016.
The Options are exercisable between 3 and 10 years from date of
grant and are subject to performance criteria, including share
price appreciation.
The Company believes the grant of these new Options will closely
align the interests of the scientific, sales and marketing
consultants to the Company with those of shareholders.
Following the issue of the new Options the total number of
Ordinary Shares under option which could be issued if all of the
performance criteria are met is 138,617,620 Ordinary Shares.
6. Cautionary statement
This document contains certain forward-looking statements with
respect to the financial condition, results and operations of the
business. These statements involve risk and uncertainty as they
relate to events and depend on circumstances that will incur in the
future. Nothing in this interim report should be construed as a
profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR WGGBCPUPQUQU
(END) Dow Jones Newswires
December 30, 2016 02:00 ET (07:00 GMT)
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