RNS Number : 7476G
Abingdon Health PLC
14 March 2024
 

Abingdon Health plc

("Abingdon" or "the Company")

 

Interim Results for the six months ended 31 December 2023

 

York, U.K - 14 March 2024: Abingdon Health plc (AIM: ABDX, 'Abingdon' or 'the Company'), a leading international lateral flow contract development and manufacturing organisation (CDMO), announces its unaudited interim results for the six months ended 31 December 2023.

 

Operational Highlights (including post-period):

·    Continued growth of contract service activities with a number of projects moving through into technical transfer for manufacture; and the Company's full-service offering resonating well with customers across a range of industries.

·    Strong revenue growth across all aspects of Abingdon's fully integrated CDMO solution, including contract development; technical transfer; manufacturing; and regulatory and commercial support.

·    The Company's opportunity pipeline remains robust with 3 new CDMO projects signed up post 31 December 2023 bringing the total to 29 live CDMO projects; and the Board is confident, based on the customer base and pipeline, that Abingdon's lateral flow CDMO proposition will continue to yield further contract service opportunities over the course of 2024 and beyond.

·    The Company's product revenue growth will be supported in H2 2024 with the launch of a number of retailer own label self-test products with purchase orders in place and being delivered in H2 2024.

 

Financial Highlights:

·    Revenue of £2.4m for H1 2024 (H1 2023: £1.1m), representing a more than doubling of like-for-like revenue with a growth rate of 117% compared with H1 2023.

§ Lateral Flow CDMO revenues accounted for £2.2m (H1 2023: £0.9m) which represented a growth rate of 136% compared with H1 2023.

§ Lateral Flow Products revenues accounted for the balance of £0.2m (H1 2023: £0.2m).

·    Gross profit of £1.3m for H1 2024 (H1 2023: £0.3m).

§ As a result, gross margins have increased in the period to 53.0% (H1 2023: 25.9%).

§ This is a result of improved utilisation of our operational team through increased manufacturing volumes being delivered in H1 2024 compared with H1 2023.

·    Against this backdrop of revenue growth, operating costs remain stable at £2.7m for H1 2024; compared with both H1 2023 and H2 2023.

·    Reduction in Adjusted1 EBITDA loss of 47% in H1 2024 to £(1.2)m (H1 2023: Adjusted2 EBITDA loss of £(2.2)m).

·    Reduction in operating loss of 50% to £(1.2)m (H1 2023: £(2.4)m); with H2 2024 revenue growth and further cost savings anticipated to drive continued improvement in profit performance and cashflow.

 

1 adjusted for amortization, depreciation, share based payment expense and non-recurring redundancy cost and impairment reversals/(charges).

2 adjusted for amortization, depreciation, share based payment expense, non-recurring redundancy costs and professional fees as well as adjustments relating to IFRS16.

 

Current Trading & Outlook

 

·    Trading in the first two months of H2 2024 has been robust.

·    The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024. As a result, FY 2024 revenues are expected to be materially higher than FY 2023 revenues of £4.0m.

·    The primary objective of the Board remains to move the Company to a breakeven and cash flow positive position which it forecasts will be achieved in 2024 without the need for additional funding. 

 

Chris Yates, CEO at Abingdon Health plc, commented:

 

"We are pleased with H1 2024 revenue growth of 117% and look forward to building on this in H2 2024. We are encouraged by the growth Abingdon's dedicated lateral flow CDMO service continues to generate with our international customer base and we are pleased to have onboarded a number of new customers since the end of H1 2024. Our strategy remains on building our capabilities to support our customers in all the areas required to bring their lateral flow project from "idea to commercial success." Our full-service offering is resonating well with customers that want to benefit from the cost and time efficiencies this integrated service provides."

 

"Our focus is to continue to grow our commercial pipeline, increase revenues, pro-actively manage costs, to achieve profitability and generate positive cashflow. All of our activities are now geared towards these near-term objectives. I would like to thank the Abingdon team for their hard work, expertise, dedication and their full focus on going that extra mile to deliver for our customers. They are a credit to the Company and their efforts are greatly appreciated by me and the rest of the Board.  I would like to thank shareholders for their continued support and I look forward to updating further on progress as we move through 2024."

 

For further information, please contact:

 

Abingdon Health plc

www.abingdonhealth.com/investors/

Chris Yates, Chief Executive Officer


Chris Hand, Non-Executive Chairman

 

 

 

Singer Capital Markets (Sole Broker and Nominated Adviser)

Tel: +44 (0)20 7496 3000

Peter Steel, Alex Bond, Jalini Kalaravy (Corporate Finance)

 

Tom Salvesen (Corporate Broking)

 


 

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

About Abingdon Health plc

Abingdon Health is a leading lateral flow contract research and contract development and manufacturing organisation ("CDMO") offering its services to an international customer base across industry sectors that include clinical, self-testing, animal health, plant health, and environmental testing. Abingdon Health has the internal capabilities to take projects from initial concept through to routine and large-scale manufacturing; from "idea to commercial success."

 

The Company's CDMO division offers product development, regulatory support, technology transfer and manufacturing services for customers looking to develop new assays or transfer existing laboratory-based assays to a lateral flow format. Abingdon Health aims to support the increase in need for rapid results across many industries and locations and produces lateral flow tests in areas such as infectious disease, clinical testing including companion diagnostics, animal health and environmental testing. Faster access to results allows for rapid decision making, targeted intervention and can support better outcomes. 

 

Abingdon Health's Abingdon Simply Test? range of self-tests is an ecommerce platform that offers a range of self-tests to empowers consumers to manage their own health and wellbeing. The Abingdon Simply Test? ecommerce site offers consumers a range of information to support them in making informed decisions on the tests available. In addition, the site provides Abingdon's contract services customers with a potential route to market for self-tests. The Abingdon Simply Test range is also sold through international distributors and through other channels in the UK and Ireland such as pharmacy chains.

 

Founded in 2008, Abingdon Health is headquartered in York, England.

For more information visit: www.abingdonhealth.com

 

BUSINESS REVIEW

 

Strategy

 

Abingdon Health's mission is to improve life by making rapid testing accessible to all. We seek to achieve this in two ways. Firstly, by providing our customers with a comprehensive lateral flow contract development and manufacturing service ("CDMO") to bring their products to market in the most efficient and cost-effective way. Secondly, through the distribution of a range of lateral flow self-test products, branded Abingdon Simply TestTM, retailer own brand or (select) private-label products.

 

Abingdon Health is proud of the fact that its customers are increasingly viewing the Company's as a one stop solution for the development, manufacture and distribution of lateral flow self-test products. 

 

Lateral Flow CDMO services

Abingdon provides is customers with an integrated lateral flow Contract Research Organisation ("CRO") and Contract Development and Manufacturing Organisation ("CDMO") service (collectively "CDMO"). Abingdon's contract service programme covers feasibility, optimisation, scale-up, technical transfer and manufacturing. In addition, we offer a range of other complementary services such as packaging design and kitting, regulatory advice including validation and verification, documentation for regulatory submissions, and commercial support. The Company provides customers with all the services required to take their project from idea to large-scale manufacture, regulatory approval when required, and commercial success.

 

H1 2024 saw solid commercial progress in our CDMO division. H1 2024 CDMO revenues more than doubled to £2.2m which represented a growth rate of 136% compared with H1 2023. One particularly encouraging aspect is that a number of Abingdon's customers are engaging with the Company on a broad range of contract services and we are supporting them not only in accelerating their projects through the lateral flow development phase into technical transfer and manufacturing but in other areas such as packaging design, regulatory support, analytical laboratory services and kitting. The clear benefit for the customer is that they have one principal service provider who is proactively co-ordinating the various work streams in a cohesive and integrated manner to ensure the overall project is being driven in a cost effective and time efficient way. Our CDMO pipeline remains robust and we are pleased to have signed another 3 new CDMO project since January 2024 (bringing the total number of live CDMO projects to 29); with these projects now being initiated. 

 

We continue to be optimistic on the prospects for the lateral flow market. Recent estimates suggest the lateral flow market will reach nearly $23 billion by 2027 (Source: MarketsandMarkets). Within this large opportunity one important thing to note is that the product mix within the market is also changing with large COVID product revenues being replaced by a range of other lateral flow products across a range of sectors as the adoption of lateral flow technology becomes more widespread. COVID-19 certainly played a key role in reducing the barriers to adoption for lateral flow technology and "doing a lateral flow test" became part of the vernacular.  This changing mix creates opportunities for Abingdon to support customers bringing new products to market and this is being reflected in the range of new product development opportunities emerging across a range of sectors including clinical, animal health, food, plant pathogen and the environmental markets. The Board believes these market drivers will offer further opportunities for the Company to grow its CDMO business for the foreseeable future.

 

Lateral Flow Self-Test Products

The Abingdon Simply Test and branded range of self-tests has increased to 18 products. H1 2024 revenues were £0.2m which represented a growth rate of 5% compared to H1 2023.  As the product line, and OEM variants of it, become more established, the Company anticipates more growth from this product range during H2 2024.  A number of significant purchase orders have been received in H2 2024 which we expect to fulfil by the end of June 2024. The Company is aiming to selectively add additional self-tests, including those developed through its contract service activities, over the rest of FY2024 and beyond. The first CDMO customer's product to be launched through the Company's sales and distribution platform was the Salignostics SalistickTM saliva pregnancy test. The product is currently sold across a range of retail platforms and online at www.abingdonsimplytest.com and we expect further product distribution expansion in 2024.

 

We are pleased to support a leading UK retail chain with the launch of a small range of own-label lateral flow self-tests. As lateral flow experts Abingdon is well placed to support major retailers, both in the UK and mainland Europe, in the sourcing and launch of lateral flow products. Abingdon's ambition is to be the trusted source of lateral flow tests for the retail industry giving both retailers and consumers confidence in the lateral flow tests they procure and use.

 

During H1 2024 Abingdon, alongside Morrama Ltd ("Morrama"), invested in a new company, Eco-Flo Innovations Ltd ("Eco-Flo"), that is focused on developing sustainable product design solutions for the lateral flow market. As part of the agreement Morrama assigned the intellectual property and know-how of their novel Eco-Flo material into Eco-Flo. Work is well underway and in H2 2024 Abingdon will be testing the first plastic-free, compostable cassettes generated by the tooling Eco-Flo has invested in. The target is to have the first products available to customers in the second half of 2024. These cassettes will be manufactured in the UK and will utilise renewable plant fibre moulding technology that reduces CO2 emissions by 80% compared to the equivalent single-use plastic. The initial design will offer a straight swap from traditional plastic cassettes, breaking down any barrier for companies looking to reduce the impact of their assays and reduce the plastic use across the full test kit by 62%.

 

People

 

As at 31 December 2023, the Company's headcount was 84, compared with 82 as at 1 July 2023. During H1 2024 we increased the size of the R&D development team to support the strong commercial traction in the Contract Development segment of the business. This growth in the number of R&D scientists was largely offset by reductions in headcount in other areas of the business. Our intention is to keep our headcount stable and continue to invest in developing the skills and capabilities of our team to improve productivity and revenue generation capabilities.

 

Financial Performance

 

Revenues in H1 2024 were more than double those of H1 2023 at £2.4m (H1 2023: £1.1m) which represented a growth rate of 117%. We expect revenues to be weighted towards the second half of the financial year, as in the previous financial year, and our target remains to achieve good like-for-like revenue growth for each year. We are on track to achieve this in 2024 with H2 2024 revenues expected to be positively impacted by the number of technical transfer projects compared to H1 2024, both from projects transferred into Abingdon at design freeze and from existing projects moving through the design review process at Abingdon and into technical transfer ready for manufacture.

 

The gross profit margin for the period increased to 53.0% (H1 2023: 25.9%) as we improved the utilisation of our operational team through increased manufacturing volumes being delivered in H1 2024 compared with H1 2023.

 

Operating costs in H1 2024 were stable at £2.7m (H1 2023 £2.6m; H2 2023: £2.7m).  The Company was affected by the inflationary environment across H1 2024 resulting in increased costs such as energy costs but this was offset by a continued focus on cost control throughout the business. Cost control remains a key focus and a number of cost cutting measures taken during H1 2024 will positively influence H2 2024.

 

Adjusted EBITDA loss reduced from £(2.2)m in H1 2023 to £(1.2)m in H1 2024 as a result of increased revenues and relatively stable operating costs.

 

In H1 2024 the operating loss was £(1.2)m which was a 50% reduction in the loss compared to the first half of 2023 (H1 2023: £(2.4)m).

 

Our key focus is to continue to reduce our operating loss in H2 2024 and this will be driven by forecast revenue growth and additional cost savings, some of which have already been made in H1 2024 but will impact mainly in H2 2024.

 

The Company's cash balance at 31 December 2023 was £2.0m (30 June 2023: £3.2m).

 

The earnings per share figure below includes in the denominator deferred shares. Technically this is correct. However, it should be noted that the deferred shares are non-voting shares, with no rights to dividends, but holders of deferred shares are entitled to receive the nominal value of that share (0.0025 pence sterling) once on a return of capital, a repurchase of those shares by the Company or in connection with a sale of those shares. As set out in note 3 below, the total nominal value of all the deferred shares is £45k.

 

Current Trading and Outlook

 

Abingdon's comprehensive lateral flow CDMO service proposition is resonating well with customers and we look forward to continue to build our business and grow shareholder value. 

 

The Board remains confident of achieving material revenue growth for FY24 compared to FY23, with revenues in H2 2024 also being materially ahead of H1 2024.

 

Our key focus remains on continued revenue growth, proactive cost control and progression towards profitability and a cashflow positive position.

 

Consolidated Statement of Total Comprehensive Income

For the period ended 31 December 2023

 

 

 

Notes

Unaudited

6 months ended

31 December 2023

 Unaudited

6 months ended

31 December 2022

Audited

 Year

ended

30 June

2023

 

 

£'000

£'000

£'000

 





Revenue

1

2,410

1,111

4,045

Cost of sales

 

(1,132)

(823)

(1,970)

Gross profit

 

1,278

288

2,075

 

 




Administrative expenses

 

(2,728)

(2,563)

(5,220)

Other income

 

281

80

252

Adjusted EBITDA (before adjusting items)

 

(1,169)

(2,195)

  (2,893)


 




Amortisation

 

(15)

(7)

(29)

Depreciation

 

(270)

(323)

(644)

Impairment reversals/ (charges)

 

361

-

(86)

Share-based payment expenses

 

(10)

(7)

(28)

Non-recurring legal, professional and fundraising fees

 

-

(18)

(33)

Non-recurring redundancy costs

 

(109)

(162)

(162)

Lease modification

 

-

-

390

Exceptional income/(costs)

 

-

305

(88)


 




Operating loss

 

(1,212)

(2,407)

(3,573)


 




Finance income

 

26

32

89

Finance costs

 

(34)

(31)

(72)

Loss before taxation

 

(1,220)

(2,406)

(3,556)


 




Taxation

 

15

(15)

105


 




Loss for the period

 

(1,205)

(2,421)

     (3,451)


 




Other comprehensive loss

 

-

-

-


 




Total comprehensive loss for the period

 

(1,205)

(2,421)

(3,451)


 




Attributable to:

 




Equity holders of the parent

 

(1,205)

(2,421)

(3,451)


 




Basic earnings per share (pence)

2

(0.40)

(0.80)

(1.14)


 




Diluted earnings per share (pence)

2

(0.40)

(0.80)

(1.14)

 



Consolidated Statement of Financial Position

For the period ended 31 December 2023


           

Notes

Unaudited

31 December 2023

Unaudited

31 December 2022

Audited

30 June

2023

 

 

£'000

£'000

£'000

ASSETS

 

 

 

 

Non-current assets





Investments in associates

 

15

-

-

Other intangible assets

 

76

46

90

Property, plant and equipment

 

977

1,494

1,209


 

1,068

1,540

1,299


 




Current assets

 




Inventories

 

411

183

329

Trade and other receivables

 

999

824

1,147

Income tax debtor

 

346

86

50

Cash and cash equivalents

 

1,998

4,450

3,236


 

3,754

5,543

4,762






Total assets


4,822

7,083

6,061






LIABILITIES





Current liabilities





Trade and other payables


2,000

1,972

2,033

Borrowings


-

52

-

Obligations under leases


97

83

87



2,097

2,107

2,120






Non-current liabilities





Borrowings


721

690

708

Obligations under leases


190

268

224



911

958

932

 





Total liabilities


3,008

3,065

3,052






Net assets


1,814

4,018

3,009






EQUITY





Attributable to the owners of the parent:





Share capital

3

76

76

76

Share premium


30,309

30,309

30,309

Share based payment reserve

5

90

79

80

Accumulated losses


(28,661)

(26,446)

(27,456)

 





Total equity


1,814

4,018

3,009


 

 

Consolidated Statement of Changes in Equity

For the period ended 31 December 2023


 

Share

Capital

 

Share

premium

 

Share based payment reserve

 

Retained earnings

 

Total equity attributable to owners of the parent

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

 










At 30 June 2022

76


30,309

 

153


(23,446)


7,092

Loss







(2,421)


(2,421)

 

Consolidated Statement of Changes in Equity (continued)

For the period ended 31 December 2023

 


Share

Capital


Share

premium


Share based payment reserve


Retained earnings


Total equity attributable to owners of the parent


£'000


£'000


£'000


£'000


£'000











Total comprehensive loss for the period

-


-


-


(2,421)


(2,421)

Share option expense

-


-


7


-


7

Share options exercised

-


-


(4)


4


-

Share options forfeited

-


-


(77)


77


-

At 31 December 2022

76


30,309


79


(26,446)


4,018

 










Loss







(1,030)


(1,030)











Total comprehensive loss for the period

-


-


-


(1,030)


(1,030)

Share option expense

-


-


21


-


21

Share options forfeited

-


-


(20)


20


-

At 30 June 2023

76


30,309


80


(27,456)


3,009

 

 

Share

capital

 

Share

premium

 

Share based payment reserve

 

Retained earnings

 

Total equity attributable to owners of the parent

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

Loss







(1,205)


(1,205)











Total comprehensive loss for the period

-


-


-


(1,205)


(1,205)

Share option expense

-


-


10


-


10

At 31 December 2023

76


30,309


90


(28,661)


1,814

 










 

 

Notes to the Interim Financial Statements

For the period ended 31 December 2023

 

     

           

Unaudited

6 months

ended

31 December 2023

Unaudited

6 months

ended

31 December 2022

Audited Year ended

30 June

2023

 

£'000

£'000

£'000

 




Cash flow from operating activities




Loss for the period

(1,205)

(2,421)

(3,451)

Adjustment for:




Other income

(281)

(80)

(252)

Exceptional income

-

(305)

-

Net finance income

9

(1)

(17)

Tax (credit)/charge

(15)

15

(105)

Amortisation and impairment of intangible assets

15

7

29

Share based payments

10

7

28

Depreciation and impairment of property, plant and equipment

270

323

     730  

Profit on disposal of property, plant and equipment

-

(14)

-

Impairment reversal

(361)

-

-





Changes in working capital:




(Increase)/decrease in inventories

(83)

351

205

Decrease in trade and other receivables

149

7,020

6,647

Decrease in trade and other payables

327

(3,068)

(3,180)

Cash used in operations

(1,165)

Interest paid

(34)

(31)

(48)

Income taxes received

-

162

325

Insurance claim proceeds

-

-

2

Net cash (used in)/generated from operating activities

(1,199)

1,965

913

 


Cash flow from investing activities




Interest received

26

32

89

Purchase of intangible assets

(4)

(18)

(82)

Purchase of property, plant and equipment

(18)

(40)

(75)

Proceeds on disposal of property, plant and equipment

-

-

1

Net cash generated from/ (used in) investing activities

4

(26)

(67)

 




Cash flow from financing activities

 

 

 

Cash withheld for SAYE scheme

-

-

(1)

Proceeds from new bank loans and borrowings

-

250

250

Repayment of loans

-

(63)

(115)

Payment of lease obligations

(43)

(73)

(141)

Net cash (absorbed by)/ generated from investing activities

(43)

114

(7)

 


(Decrease) / increase in cash and cash equivalents

(1,238)

2,053

839





Net cash and cash equivalents at beginning of the period

3,236

2,397

2,397

Net cash and cash equivalents at end of period

1,998

4,450

3,236

 

 

Company information

Abingdon Health PLC ("the Company") is a public limited company domiciled and incorporated in England and Wales. The Company is quoted on the London Stock Exchange's Alternative Investment Market ("AIM"). The registered office is York Biotech Campus, Sand Hutton, York, YO41 1LZ. The consolidated financial information (or "financial statements") incorporate the financial information of the Company and entities (its subsidiaries) controlled by the Company (collectively comprising the "Group").

 

The principal activity of the Group is to provide lateral flow contract development and manufacturing ("CDMO services") and related contract services to an international customer base.

 

Significant accounting policies

The Group has presented below key extracts of its accounting policies. All policies are consistent with the previous statutory financial statements for the year ended 30 June 2023 and are expected to be consistently applied for the current year ended 30 June 2024 inclusive of these changes.

 

Basis of preparation

These financial statements have been prepared in accordance with UK adopted international accounting standards ("IFRS") insofar as these apply to interim financial statements.

 

The financial information set out in these interim consolidated financial statements for the six months ended 31 December 2023 is unaudited. The financial information presented are not statutory accounts prepared in accordance with the Companies Act 2006, and are prepared only to comply with AIM requirements for interim reporting.

 

The Group's financial statements for the year ended 30 June 2023 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498 (2) of the Companies Act 2006.

 

Basis of measurement

The financial statements have been prepared on the historical cost basis, modified to include the revaluation of certain financial instruments at fair value.

 

Use of estimates and judgements

The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income, and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

 

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.  

 

Going concern

As at 31 December 2023, the Group has net current assets. The Group has a number of CDMO service contracts in place which generate revenues and are expected to continue doing so. The Group also has significant unused cash reserves available which are expected to provide an operating headroom for a period of at least 12 months.

 

The Group continues to focus on increasing the number of CDMO customers and supporting those customers in bringing their products to market, thereby securing additional revenues for the Group.

 

Basis of consolidation

The Group financial information consolidates those of the Company and the subsidiaries that the Company has control of. Control is established when the Company is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

 

Electronic communications

The Company is not proposing to bulk print and distribute hard copies of this Interim Report for the six months ended 31 December 2023 unless specifically requested by individual shareholders. The Board believes that by utilising electronic communication it delivers savings to the Company in terms of administration, printing and postage, and environmental benefits through reduced consumption of paper and inks, as well as speeding up the provision of information to shareholders.

 

News updates, Regulatory News and Financial statements can be viewed and downloaded from the Group's website, www.abingdonhealth.com/investors. Copies can also be requested from: Company Secretary, Abingdon Health PLC, York Biotech Campus, Sand Hutton, York YO41 1LZ.

 

Share-based payment

The fair value of equity-settled share-based payments to employees is determined at the date of grant and is expensed on a straight-line basis over the vesting period based on the Group's estimate of shares or options that will eventually vest.

 

Investments in Associates

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

 

1.     Revenue

The Group applies IFRS 15 'Revenue from contracts with customers'. Under IFRS 15, the Group applies the 5-step method to identify contracts with its customers, determine performance obligations arising under those contracts, set an expected transaction price, allocate that price to the performance obligations, and then recognises revenues as and when those obligations are satisfied.

 

Segmental analysis of revenue       


Unaudited

6 months to

31 December 2023

Unaudited

6 months to

31 December 2022

Audited

12 months to 30 June

2023


£'000

£'000

£'000

Product sales

174

165

418

Contract manufacturing

1,131

433

1,059

Contract development

818

513

2,300

Regulatory

287

-

268

Total revenue from contracts with customers

2,410

1,111

4,045

 

Revenue analysed by geographical market


Unaudited

6 months to 31 December 2023

Unaudited

6 months to 31 December 2022

Audited

12 months to 30 June

2023


£'000

£'000

£'000

United Kingdom

1,317

333

1,307

Europe (excluding Belgium)

475

575

1,179

Belgium

-

-

479

USA & Canada

480

99

861

Rest of the World

138

104

219

 

2,410

1,111

4,045

 

 

2.     Earnings per share       

 

The calculation of the basic and diluted earnings per share is based on the following data:

 

 

Unaudited 31 December 2023

Unaudited 31 December 2022

Audited

30 June 2023

 

 

 

 

Earnings used in calculation (£'000s)

(1,205)

(2,421)

(3,451)

Number of shares

304,033,634

304,033,096

304,033,363

Basic EPS (p)

(0.40)

(0.80)

(1.14)

Number of dilutable shares

306,667,725

304,033,096

305,820,420

Diluted EPS (p)

(0.40)

(0.80)

(1.14)

 

The directors have presented adjusted earnings as a measure of ongoing profitability and performance, and before deduction of share-based payment costs and listing costs. The diluted EPS is the same as the basic EPS as there is a loss for each of the periods concerned. The calculated adjusted earnings for the current period of accounts is as follows:

 

Adjusted Earnings per Share

Unaudited

6 months ended

31 December 2023

Unaudited

6 months ended

31 December 2022

Audited

Year

ended

30 June 2023

 

£'000s

£'000s

£'000s

 




Loss before taxation

(1,220)

(2,406)

(3,556)

Adjusted for:




Share-based payment

10

7

28

Impairment (reversal)/charge

(361)

-

86

Non-recurring legal fees

-

18

33

Non-recurring employee redundancy costs

109

162

162

Depreciation and amortisation

285

330

672

Net finance cost / (income)

8

(1)

(17)

Lease modification

-

-

(390)

Exceptional income

-

(305)

88





Adjusted Earnings

(1,169)

(2,195)

(2,894)

 

Unaudited

6 months ended

31 December 2023

Unaudited

6 months ended

31 December 2022

Audited

Year

ended

30 June 2023

 

 

 

 

Adjusted earnings (£000s)

(1,169)

(2,195)

(2,894)

Number of shares

304,033,634

304,033,096

304,033,363

Adjusted EPS (p)

(0.38)

(0.72)

(0.95)

Number of dilutable shares

306,667,725

304,033,096

305,820,420

Adjusted diluted EPS (p)

(0.38)

(0.72)

(0.95)

 

3.     Share capital

 


Unaudited 31 December 2023

Unaudited

31 December 2022

Audited

30 June

2023





Ordinary share capital




Authorised

Number

Number

Number

Ordinary shares of 0.025p each

121,716,822

121,716,822

121,716,822

Deferred ordinary shares of 0.025p each

182,316,812

182,316,812

182,316,812


304,033,634

304,033,634

304,033,634





Allotted and fully paid

Number

Number

Number

Ordinary shares of 0.025p each

121,716,822

121,716,822

121,716,822

Deferred ordinary shares of 0.025p each

182,316,812

182,316,812

182,316,812


304,033,634

304,033,634

304,033,634






£'000

£'000

£'000

Ordinary shares of 0.025p each

31

31

31

Deferred ordinary shares of 0.025p each

45

45

45


76

76

76

 

Reconciliation of movements during the periods:

 


Ordinary

Number

Deferred Ordinary

Number




At 1 July 2022

121,711,614

182,316,812




Exercise of share options

5,208

-




At 31 December 2022

121,716,822

182,316,812







At 31 June 2023

121,716,822

182,316,812







At 31 December 2023

121,716,822

182,316,812

 

 

4.   Investments in Associates

On 7th August 2023, the group paid consideration of £15,000 in order to acquire a 25.1% shareholding in Eco-Flo Innovations Ltd.

 

5.   Share options

 

The following movements on share options have been recognised in the period:

 


Number of share options

Weighted average exercise price


Unaudited

31 December  2023

Unaudited 31 December  2022

Audited 30

June

2023

Unaudited 31 December  2023

Unaudited

31 December  2022

Audited

30

June 2023


Number

Number

Number

£

£

£








Outstanding at start of period

4,247,210

219,781

219,781

0.0818

0.5057

0.3997

Exercised

-

(5,208)

(5,208)

-

0.0003

0.0003

Issued

2,386,238

4,119,286

4,119,286

0.00

0.0700

0.0700

Forfeited

(914,286)

(27,444)

(86,649)

0.0698

0.3281

0.4642

Lapsed

(2,084)

-

-

-

-

-

Outstanding at end of period

5,717,078

4,306,415

4,247,210

0.0462

0.0818

0.0773








Exercisable at end of period

68,752

-

70,836

0.00

-

0.0025

 

The options outstanding at 31 December 2023 had an exercise price ranging from £0.00 to £0.70 and a remaining contractual life of up to 10 years. The options exist at 31 December 2023 across the following share option schemes:

 


Number of shares

Exercise price per share (£)

Vesting period

Options issued in April 2021

68,752

0.00025

1 year

SAYE scheme commenced in March 2021

57,089

0.70

3 years

Options issued in December 2022

3,204,999

0.07

3 years

Options issued in October 2023

2,386,238

0.00

3 years


5,717,078



 

The fair value of the scheme represents the reduced fair value after adjusting for leavers and is being expensed over the vesting period.

 

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