TIDMCNSL
RNS Number : 3824U
Cambridge Nutritional Sciences PLC
23 November 2023
CAMBRIDGE NUTRITIONAL SCIENCES PLC
("CNS" or the "Company" or the "Group")
Half-Year Report
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Strong revenue increase, 2022 sales backlog cleared and
FoodPrint(R) yields significantly improved; Company firmly on track
to meet market expectations for the full year
CNS (AIM: CNSL), the specialist medical diagnostics company
focused on promoting a personalised and functional approach to
health and nutrition, announces its unaudited interim results for
the six months ended 30 September 2023.
H1 Financial Highlights:
-- Revenue increased 44% to GBP4.9m (H1 2022: GBP3.4m).
-- Gross margin increased to 62.7% (H1 2022: 54.0%), largely due
to production efficiencies & product mix
-- Adjusted EBITDA(1) GBP0.0m (H1 2022: restated loss GBP0.4m).
-- Loss before tax GBP0.7m (H1 2022: restated loss GBP0.8m).
-- Loss on discontinued operations GBP Nil (H1 2022: restated loss of GBP1.2m).
-- Cash balance GBP4.4m (H1 2022: GBP2.7m).
Operational Highlights:
-- Strong performance in operations with FoodPrint(R) yields significantly improved.
-- First USA laboratory commercialising FoodPrint(R).
-- MyHealth Tracker roll out expanding to all UK customers and
installed in one European country.
-- Microbiome menu expansion moving into trial phase in UK.
-- Creation of a continuous improvement function to build on the
work done by Chartwell Consulting.
-- Appointment of new independent Non-Executive Director, Carolyn Rand.
-- Successful name change to Cambridge Nutritional Sciences Plc
(AIM: CNSL), better reflecting the standalone business.
Outlook:
-- Company is on track to meet market expectations for the full year.
-- Healthy pipeline of sales, adding sales from three new
countries with demand expanding via our scientific educational
programmes.
-- MyHealth Tracker UK customer roll out expected in H2;
international roll out to commence in FY25.
-- Well-funded to deliver on our strategic objectives.
-- Further USA Laboratories expected to commercialise FoodPrint(R) in FY25.
-- The Board remains confident that the Company has a compelling
case regarding the dispute with DHSC but there have been no
material developments. The Board continues to vigorously pursue its
substantial counterclaim for losses incurred.
(1) Adjusted for exceptional items, amortisation of intangible
assets and share based payment charges.
Commenting on the results, Jag Grewal, Chief Executive officer,
said:
"The first half of this year delivered encouraging performance
in both financial and operational terms. It is particularly
reassuring to see improvements in the operational side of the
business yielding tangible results. We continue to build a new
foundation as a standalone business and believe we have the right
strategy and vision to build on a leadership position in the
exciting market of personalised health and nutrition."
Investor presentation
Simon Douglas, Chair, and Jag Grewal, CEO, will provide a live
presentation relating to the Interim Results via the Investor Meet
Company platform today at 4:30pm GMT. The presentation is open to
all existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and add
to meet Cambridge Nutritional Sciences PLC via:
https://www.investormeetcompany.com/cambridge-nutritional-sciences-plc/register-investor
The investor presentation will be available later this morning
on the Company website:
https://www.cnsplc.com/financials/presentations
The information communicated in this announcement is inside
information for the purposes of Article 7 of EU Regulation
596/2014
Contacts:
Cambridge Nutritional Sciences www.cnsplc.com
PLC
Jag Grewal, Chief Executive via Walbrook PR
Cavendish Capital Markets Tel: 020 7220 0500
Limited
Geoff Nash / Edward Whiley / George Dollemore
(Corporate Finance)
Nigel Birks / Harriet Ward
(ECM)
Walbrook PR Limited Tel: 020 7933 8780 or omega@walbrookpr.com
Paul McManus / Charlotte Edgar Mob: 07980 541 893 / Mob: 07884 664 686/
Sam Allen Mob: 07502 558 258
About Cambridge Nutritional Sciences plc
Cambridge Nutritional Sciences plc (AIM: CNSL) is a specialist
medical diagnostics company focused on industry-leading Health and
Nutrition products.
Chair's Statement
Overview
I am pleased to report that we have made a positive start over
the first half of this fiscal year. The production challenges
previously reported have been overcome and we have now cleared the
sales backlog. We are delivering on our strategic objectives and
have now established ourselves as a standalone business focused on
Health and Nutrition under our new name of Cambridge Nutritional
Sciences Plc ('CNS'). The market we serve remains exciting with a
significant opportunity for global growth as more people are aware
of their personalised health and its link to nutrition.
Financial Performance
Revenue increased 44.0% to GBP4.9m (H1: GBP3.4m) helped by both
production and yield improvements of FoodPrint(R) enabling the
clearing of the sales backlog arising from the FY23 production
issues. FY24 revenue is expected to be in line with
expectations.
Revenue by product group:
-- Sales of FoodPrint(R) increased 47.0% to GBP3.3m (H1 2022:
GBP2.2m)
-- Sales of Food Detective(R) were GBP0.7m in line with the
prior year
-- CNS Lab and other sales were up 97.0% to GBP0.9m (H1 2022:
GBP0.4m)
Gross profit from operations increased to GBP3.1m (H1 2022:
GBP1.9m) with an improved gross margin percentage of 62.7% (H1
2022: 54.0%). The increase in margin principally reflects the
improvements in production yields as well as a higher proportion of
high margin FoodPrint(R) tests in the product mix. The Board is
confident that Food Print(R) margins will continue at this improved
level in H2 FY24 as the Company benefits from the enhanced
operational efficiencies.
Overheads increased by 31% to GBP3.5m (H1 2022: restated
GBP2.7m). GBP0.3m from underlying period growth with the balance
related to one-time investment of the operational improvement
project and business realignment, and a GBP0.1m FX headwind.
The Group continues to consider EBITDA and adjusted EBITDA
(adjusted for exceptional items and share-based payments) as being
the appropriate measures of profitability being aligned with the
cash generating activities of the business. The adjusted EBITDA was
GBP0.0m (H1 2022: loss of GBP0.2m). The GBP0.3m adjustment for
exceptional items is related to realigning the group for the
future.
The cash balance on 30 September 2023 was GBP4.4m (H1 2022:
GBP2.7m, 31 March 2023: GBP5.1m).
Operational Update
Earlier in the year we were pleased to report that the
production challenges announced have been resolved, after working
with industry specialists, Chartwell Consulting ('Chartwell') over
the six-month period to embed new working processes. The result is
that FoodPrint(R) production yields have increased and are
significantly higher than the preceding six months, demonstrating
the effectiveness of the improved measures. These newly implemented
measures, alongside management changes, have allowed us to address
the order backlog and the market's demand for food sensitivity
tests remains strong. As part of this process, and in our drive to
constantly seek operational improvements, we now have a permanent
continuous improvement function in our operations department to
promote further efficiency and productivity across the business.
Historically the business support systems were delivered from the
group in Scotland, and we are now in the final steps post
separating the business. Operationally we continue to evaluate
alternative technologies for our flagship product, FoodPrint(R), to
ensure the long-term future of the product.
Strategic Priorities
The MyHealthTracker App ('the App'), announced in March 2023, is
designed for use on both iOS and Android platforms and will give us
a direct connection to customers. It has been rolled out across the
UK with selected health care professionals and their customers and
initial feedback shows that the product has been well received by
both groups. We are looking to release the product more broadly in
the UK in early 2024. During the period we also supported initial
installation of the digital platform in one European country, and
we look forward to introducing the App into more geographies during
2024 and beyond.
As we announced at the beginning of 2023, FoodPrint(R) was
installed in our first laboratory in the USA and following
approvals is now live and actively commercialising FoodPrint(R).
Further expansion into the USA is planned, with validation and
approvals currently taking place with two other laboratories in the
region.
We saw robust growth in our UK market, which is serviced by our
own testing laboratory, CNSLab. Sales grew by 97%, driven by both
practitioner-based business as well as direct consumer demand
serviced by our white-label partners.
Our menu expansion into Microbiome testing is progressing with a
UK based trial in conjunction with a test report provider which
will allow us to assess the market feedback and requirements to
further define the product offering in what is a fast-evolving
area.
Dispute with the DHSC
There is no further progress to report in our dispute with the
Department of Health and Social Care ('DHSC'). The Board continues
to vigorously pursue its substantial counterclaim for losses
incurred towards the DHSC, as a direct result of its failure to
licence the necessary intellectual property to permit the contract
to move forward and their failure to notify the Group of their
inability to do so in a timely manner. The Board remains confident
that the Company has a compelling case.
Current Trading and Outlook
We are pleased with progress over the first half of the fiscal
year as the Company builds a solid foundation from which it can
continue to grow. H2 is expected to remain strong, although in the
absence of any further backlog to fulfill, is expected to be
slightly lower than H1 FY24 with the full year's revenue expected
to be in line with market expectations. The investment for the
final steps in the separation of the business from the historical
group will be completed during FY25. We will continue with our
plans of expanding into the USA market and adding value to the
customer base with two other laboratories in the region working on
the validation and approval of the FoodPrint test in readiness for
launch in early FY25. The MyHealth Tracker roll out in the UK will
be finalised in Q4 FY24 and a further phased roll out is planned
for FY25.
The Board's expectations are that the market conditions remain
good and that we are well capitalised and in a strong position to
grow as a standalone business.
Simon Douglas
Non-Executive Chair
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2023
As restated*
6 months 6 months 12 months
ended. ended. ended.
30 September 30 September 31 March
2023 2022 2023
Note GBP'000 GBP'000 GBP'000
------------------------------------------------ ---- ------------- ------------- ---------
Continuing operations
Revenue 3 4,934 3,434 7,546
Cost of sales (1,841) (1,581) (4,001)
------------------------------------------------ ---- ------------- ------------- ---------
Gross profit 3,093 1,853 3,545
Administration costs (2,746) (1,959) (4,755)
Selling and marketing costs (790) (730) (1,530)
Other income 51 - 25
------------------------------------------------ ---- ------------- ------------- ---------
Operating loss before exceptional items (392) (836) (2,715)
Exceptional items (294) - (524)
------------------------------------------------ ---- ------------- ------------- ---------
Operating loss after exceptional items (686) (836) (3,239)
Finance costs 4 (12) (6) (13)
------------------------------------------------ ---- ------------- ------------- ---------
Loss before taxation (698) (842) (3,252)
Tax credit 5 - - 80
------------------------------------------------ ---- ------------- ------------- ---------
Loss for the period from continuing operations (698) (842) (3,172)
------------------------------------------------ ---- ------------- ------------- ---------
Discontinued operations
Loss after tax for the period from discontinued
operations 6 - (1,245) (688)
------------------------------------------------ ---- ------------- ------------- ---------
Loss for the period (698) (2,087) (3,860)
------------------------------------------------ ---- ------------- ------------- ---------
Other comprehensive (losses)/income to be
reclassified to profit and loss in subsequent
periods
Exchange differences on translation of foreign
operations (3) 22 (15)
------------------------------------------------ ---- ------------- ------------- ---------
Other comprehensive income for the period (3) 22 (15)
------------------------------------------------ ---- ------------- ------------- ---------
Total comprehensive losses
for the period (701) (2,065) (3,875)
------------------------------------------------ ---- ------------- ------------- ---------
Earnings per share (EPS)
Basic and diluted EPS on loss for the period 7 (0.3)p (0.9)p (1.7)p
Earnings per share for continuing operations
Basic and diluted EPS on loss for the period
from continuing operations 7 (0.3)p (0.4)p (1.4)p
------------------------------------------------ ---- ------------- ------------- ---------
* See note 2 for details regarding the restatement.
Consolidated Balance Sheet
as at 30 September 2023
30 September 30 September 31 March
2023 2022 2023
Note GBP'000 GBP'000 GBP'000
-------------------------------------------- ---- ------------ ------------- --------
ASSETS
Non-current assets
Intangibles 8 4,313 4,556 4,525
Property, plant, and equipment 9 515 1,062 567
Right of use assets 9 177 62 21
Deferred taxation 994 1,120 997
-------------------------------------------- ---- ------------ ------------- --------
Total non-current assets 5,999 6,800 6,110
-------------------------------------------- ---- ------------ ------------- --------
Current assets
Inventories 1,073 1,074 777
Trade and other receivables 2,290 6,544 2,403
Cash and cash equivalents 4,396 2,712 5,115
-------------------------------------------- ---- ------------ ------------- --------
Total current assets 7,759 10,330 8,295
-------------------------------------------- ---- ------------ ------------- --------
Assets held for sale - - -
-------------------------------------------- ---- ------------ ------------- --------
Total assets 13,758 17,130 14,405
-------------------------------------------- ---- ------------ ------------- --------
EQUITY AND LIABILITIES
Equity
Share capital 10,244 10,244 10,244
Share premium 25,072 25,100 25,072
Retained deficit (25,974) (23,534) (25,319)
Translation reserve (49) (8) (46)
Total equity 9,293 11,802 9,951
-------------------------------------------- ---- ------------ ------------- --------
Liabilities
Non-current liabilities
Long-term borrowings 3 35 19
Lease liabilities 77 - -
Deferred income 2,500 2,500 2,500
-------------------------------------------- ---- ------------ ------------- --------
Total non-current liabilities 2,580 2,535 2,519
-------------------------------------------- ---- ------------ ------------- --------
Current liabilities
Short-term borrowings 33 31 32
Lease liabilities 101 69 23
Trade and other payables 1,452 2,282 1,525
-------------------------------------------- ---- ------------ ------------- --------
Total current liabilities 1,586 2,382 1,580
-------------------------------------------- ---- ------------ ------------- --------
Liabilities directly associated with assets
held for sale 299 411 355
-------------------------------------------- ---- ------------ ------------- --------
Total liabilities 4,465 5,328 4,454
-------------------------------------------- ---- ------------ ------------- --------
Total equity and liabilities 13,758 17,130 14,405
-------------------------------------------- ---- ------------ ------------- --------
* See note 2 for details regarding the restatement.
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2023
Share Share Retained Translation
capital premium deficit reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------ ------- ------- -------- ----------- -------
Balance at 31 March 2022 8,044 25,340 (21,537) (31) 11,816
------------------------------------------------------- ------- ------- -------- ----------- -------
Loss for the period to 30 September 2022 - - (2,087) - (2,087)
Other comprehensive losses - net exchange adjustments - - - 23 23
------------------------------------------------------- ------- ------- -------- ----------- -------
Total comprehensive (losses)/income for the period - - (2,087) 23 (2,064)
Issue of share capital for cash consideration 2,200 - - - 2,200
Expenses in connection with share issue - (240) - - (240)
Share-based payments - - 90 - 90
------------------------------------------------------- ------- ------- -------- ----------- -------
Balance at 30 September 2022 10,244 25,100 (23,534) (8) 11,802
------------------------------------------------------- ------- ------- -------- ----------- -------
Loss for the period to 31 March 2023 - - (1,773) - (1,773)
Other comprehensive income - net exchange adjustments - - - (38) (38)
Total comprehensive losses for the period - - (1,773) (38) (1,811)
Expenses in connection with share issue - (28) - - (28)
Share-based payments - - (12) - (12)
Balance at 31 March 2023 10,244 25,072 (25,319) (46) 9,951
------------------------------------------------------- ------- ------- -------- ----------- -------
Loss for the period to 30 September 2023 - - (698) - (698)
Other comprehensive income - net exchange adjustments - - - (3) (3)
Total comprehensive (losses)/income for the period - - (698) (3) (701)
Share-based payments - - 43 - 43
------------------------------------------------------- ------- ------- -------- ----------- -------
Balance at 30 September 2023 10,244 25,072 (25,974) (49) 9,293
------------------------------------------------------- ------- ------- -------- ----------- -------
* See note 2 for details regarding the restatement.
Consolidated Cash Flow Statement
for the six months ended 30 September 2023
As restated*
6 months 6 months 12 months
ended ended ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'000
-------------------------------------------------- ------------- ------------- ---------
Cash flows generated from operations
Loss for the year from continuing operations (698) (842) (3,172)
Loss for the year from discontinued operations - (1,245) (688)
Adjustments for:
Depreciation 108 120 219
Amortisation of intangible assets 219 225 372
Impairment and derecognition of intangible
assets - 15 15
Impairment of assets related to aborted
Ely relocation - - 399
Impairment loss recognised on the remeasurement
to fair value - 176 176
Share-based payments 43 90 78
Taxation - - (380)
Finance costs 12 21 16
--------------------------------------------------- ------------- ------------- ---------
Cash outflow from operating activities before
working capital movement (316) (1,440) (2,965)
Decrease in trade and other receivables 113 672 812
(Increase)/decrease in inventories (296) (168) 128
Decrease in trade and other payables (73) (843) (1,466)
Movement in grants - (4) (139)
Taxation received - - 478
--------------------------------------------------- ------------- ------------- ---------
Cash outflow from operating activities (572) (1,783) (3,152)
--------------------------------------------------- ------------- ------------- ---------
Investing activities
Finance income - - 19
Income from sale of CD4 business - 1,315 5,315
Purchase of property, plant, and equipment (10) (25) (25)
Purchase of intangible assets (7) (51) (128)
--------------------------------------------------- ------------- ------------- ---------
Net cash (outflow)/inflow in investing activities (17) 1,239 5,181
--------------------------------------------------- ------------- ------------- ---------
Financing activities
Finance costs (1) - (1)
Proceeds from issue of share capital - 2,200 2,200
Expenses in connection with share issue - (240) (268)
Principal portion of asset finance payments (71) (243) (314)
Interest portion of asset finance payments (7) (16) (25)
Principal portion of lease liability payments (47) (46) (97)
Interest portion of lease liability payments (4) (5) (9)
--------------------------------------------------- ------------- ------------- ---------
Net cash (outflow)/inflow from financing
activities (130) 1,650 1,486
--------------------------------------------------- ------------- ------------- ---------
Net (decrease)/increase in cash and cash
equivalents (719) 1,106 3,515
Effects of exchange rate movements - 1 (5)
Cash and cash equivalents at beginning of
period 5,115 1,605 1,605
--------------------------------------------------- ------------- ------------- ---------
Cash and cash equivalents at end of the period 4,396 2,712 5,115
--------------------------------------------------- ------------- ------------- ---------
* See note 2 for details regarding the restatement.
Notes to the Interim Report
for the six months ended 30 September 2023
1. BASIS OF PREPARATION
For the purpose of preparing the 31 March 2023 annual financial
statements the Directors used IFRS as adopted by the EU and in
accordance with the AIM Rules issued by the London Stock Exchange.
In preparing these interim financial statements, the accounting
policies used in the Group's Annual Report for the year ended 31
March 2023 have been applied consistently. The Group has not
applied IAS 34 Interim Financial Reporting, which is not mandatory
for AIM companies, in the preparation of these interim financial
statements.
The interim financial statements are unaudited. The information
shown in the consolidated balance sheet as at 30 September 2023
does not constitute statutory accounts as defined in Section 435 of
the Companies Act 2006 and the information in respect of the year
ended 31 March 2023 has been extracted from the Group's 2023 Annual
Report which has been filed with the Registrar of Companies. The
report of the auditors on the financial statements contained within
the Group's 2023 Annual Report was unqualified and did not contain
a statement under sections 498 (2) and 498 (3) of Chapter 3, Part
16 of the Companies Act 2006. These interim financial statements
were approved by the Board of Directors on 22 November 2023.
2. RESTATEMENT OF COMPARATIVES
Group
Discontinued operations
Following a review of administration costs, GBP186,000 of
credits applicable to discontinued operations have been identified
as being incorrectly applied to continuing operations as reported
in the interim results reported for the six months ended 31
September 2022. This does not affect the results reported in the
annual report for the year to 31 March 2023.
The effect of the restatements noted above on the consolidated
statement of comprehensive income as at 30 September 2022 is as
follows:
As reported Restatement As restated
30 September 30 September 30 September
2022 2022 2022
GBP'000 GBP'000 GBP'000
------------------------------------------------ ------------ ------------ ------------
Continuing operations
Revenue 3,434 - 3,434
Cost of sales (1,581) - (1,581)
------------------------------------------------ ------------ ------------ ------------
Gross profit 1,853 - 1,853
Administration costs (1,773) (186) (1,959)
Selling and marketing costs (730) - (730)
Other income - - -
------------------------------------------------ ------------ ------------ ------------
Operating loss before exceptional items (650) (186) (836)
Exceptional items - - -
------------------------------------------------ ------------ ------------ ------------
Operating loss after exceptional items (650) (186) (836)
Finance costs (6) - (6)
------------------------------------------------ ------------ ------------ ------------
Loss before taxation (656) (186) (842)
Tax credit/(expense) - - -
------------------------------------------------ ------------ ------------ ------------
Loss for the period from continuing
operations (656) (186) (842)
------------------------------------------------ ------------ ------------ ------------
Discontinued operations
Loss after tax for the period from discontinued
operations (1,431) 186 (1,245)
------------------------------------------------ ------------ ------------ ------------
Loss for the period (2,087) - (2,087)
------------------------------------------------ ------------ ------------ ------------
Other comprehensive income to be reclassified
to profit and loss in subsequent periods
Exchange differences on translation
of foreign operations 22 - 22
------------------------------------------------ ------------ ------------ ------------
Other comprehensive income for the period 22 - 22
------------------------------------------------ ------------ ------------ ------------
Total comprehensive losses for the period (2,065) - (2,065)
------------------------------------------------ ------------ ------------ ------------
Earnings per share (EPS)
Basic and diluted EPS on loss for the
period (0.3)p - (0.3)p
Earnings per share for continuing operations
Basic and diluted EPS on loss for the
period from continuing operations (0.3)p (0.1)p (0.4)p
------------------------------------------------ ------------ ------------ ------------
3. SEGMENT INFORMATION
Following the withdrawal from COVID-19 products and the decision
taken in March 2022 to dispose of the CD4 business, the sale of
which was completed on 31 July 2022, the only remaining division is
Health and Nutrition. The Global Health division specialised in the
research, development, production, and marketing of kits to aid the
diagnosis of infectious diseases, including COVID-19.
The Health and Nutrition division specialises in the research,
development, and production of kits to aid the detection of immune
reactions to food. It also provides clinical analysis to the
general public, clinics, and health professionals.
The Corporate segment consists of centralised corporate costs
which are not allocated to the trading activities of the Group.
Inter segment transfers or transactions are entered into under
the normal commercial conditions that would be available to
unrelated third parties.
Business segment information
Health
and
Nutrition Corporate Total
6 months to 30 September 2023 GBP'000 GBP'000 GBP'000
------------------------------------------- --------- --------- -------
Revenue 5,062 - 5,062
Inter-segment revenue (128) - (128)
------------------------------------------- --------- --------- -------
Total revenue 4,934 - 4,934
Cost of sales (1,841) - (1,841)
------------------------------------------- --------- --------- -------
Gross profit 3,093 - 3,093
Operating costs (2,739) (746) (3,485)
------------------------------------------- --------- --------- -------
Operating profit/(loss) before exceptional
items 354 (746) (392)
Exceptional items (151) (143) (294)
------------------------------------------- --------- --------- -------
Operating profit/(loss) after exceptional
items 203 (889) (686)
Depreciation 108 - 108
Amortisation 219 - 219
------------------------------------------- --------- --------- -------
EBITDA 530 (889) (359)
------------------------------------------- --------- --------- -------
Exceptional items 151 143 294
Share-based payment charges - 17 17
------------------------------------------- --------- --------- -------
Adjusted EBITDA 681 (729) (48)
Share-based payment charges - (17) (17)
Depreciation (108) - (108)
Amortisation (219) - (219)
Net finance costs (12) - (12)
Exceptional costs (151) (143) (294)
------------------------------------------- --------- --------- -------
Profit/(loss) before tax 191 (889) (698)
Exceptional items 151 143 294
Share-based payment charges - 17 17
Amortisation 61 - 61
------------------------------------------- --------- --------- -------
Adjusted profit/(loss) before tax 403 (729) (326)
------------------------------------------- --------- --------- -------
3. SEGMENT INFORMATION (CONTINUED)
As restated*
Health
and As restated*
Nutrition Corporate Total
6 months to 30 September 2022 GBP'000 GBP'000 GBP'000
---------------------------------- ------------ --------- ------------
Revenue 3,533 - 3,533
Inter-segment revenue (99) - (99)
---------------------------------- ------------ --------- ------------
Total revenue 3,434 - 3,434
Cost of sales (1,581) - (1,581)
---------------------------------- ------------ --------- ------------
Gross profit 1,853 - 1,853
Operating costs (2,133) (556) (2,689)
---------------------------------- ------------ --------- ------------
Operating loss before exceptional
items (280) (556) (836)
Exceptional items - - -
---------------------------------- ------------ --------- ------------
Operating loss after exceptional
items (280) (556) (836)
Depreciation 106 - 106
Amortisation 225 - 225
---------------------------------- ------------ --------- ------------
EBITDA 51 (556) (505)
---------------------------------- ------------ --------- ------------
Share-based payment charges - 90 90
Adjusted EBITDA 51 (466) (415)
---------------------------------- ------------ --------- ------------
Share-based payment charges - (90) (90)
Depreciation (106) - (106)
Amortisation (225) - (225)
Net finance costs (6) - (6)
---------------------------------- ------------ --------- ------------
Loss before tax (286) (556) (842)
Share-based payment charges - 90 90
Amortisation 49 - 49
---------------------------------- ------------ --------- ------------
Adjusted loss before tax (237) (466) (703)
---------------------------------- ------------ --------- ------------
* See note 2 for details regarding the restatement.
The adjusted profit/(loss) before taxation is a key measure of
the Group's trading performance used by the Directors. The reported
numbers are non-GAAP measures
3 . SEGMENT INFORMATION (CONTINUED)
6 months 6 months
to to
30 September 30 September
2023 2022
GBP'000 GBP'000
--------------------------- ------------- -------------
Revenues
UK 830 423
Rest of Europe 1,167 1,125
North America 1,031 606
South/Central America 243 141
India 282 286
Asia 874 651
Africa and the Middle East 507 202
--------------------------- ------------- -------------
4,934 3,434
--------------------------- ------------- -------------
6 months 6 months inc/(dec)
to to
30 September 30 September
2023 2022
GBP'000 GBP'000 %
------------------------ -------------- -------------- ----------
FoodPrint (R) 3,284 2,239 47%
Food Detective (R) 732 706 4%
CNS laboratory service 829 420 97%
Food ELISA/other 89 69 28%
------------------------ -------------- -------------- ----------
4,934 3,434 44%
------------------------ -------------- -------------- ----------
4. FINANCE COSTS
6 months 6 months
to to
30 September 30 September
2023 2022
Continuing operations GBP'000 GBP'000
--------------------------------------------------------- ------------- -------------
Interest payable on bank overdraft 1 -
Interest payable on lease liabilities 4 4
Interest on hire purchase and asset finance arrangements 7 2
--------------------------------------------------------- ------------- -------------
12 6
--------------------------------------------------------- ------------- -------------
5. TAXATION
6 months 6 months
to to
30 September 30 September
2023 2022
Continuing operations GBP'000 GBP'000
------------------------------------ ------------- -------------
Tax credited in the income statement
Current tax - current year - -
Current tax - prior year adjustment - -
Deferred tax - current year - -
Deferred tax - prior year adjustment - -
------------------------------------ ------------- -------------
- -
------------------------------------ ------------- -------------
Reconciliation of total tax credit
Factors affecting the tax credit for the period: GBP'000 GBP'000
------------------------------------------------- ------- -------
Loss taxable (672) (656)
------------------------------------------------- ------- -------
Effective rate of taxation 19% 19%
Loss before tax multiplied by the effective rate
of tax (128) (125)
Effects of:
Deferred tax asset not recognised 128 125
Tax credit for the period - -
------------------------------------------------- ------- -------
6. DISCONTINUED OPERATIONS
As restated*
6 months
to
30 September
2022
GBP'000
------------------------------------------------- -------------
Revenue 657
Cost of sales (567)
------------------------------------------------- -------------
Gross profit/(loss) 90
Administration costs (1,175)
Selling and marketing costs -
Other income 4
------------------------------------------------- -------------
Operating loss before exceptional items (1,081)
Exceptional items -
------------------------------------------------- -------------
Operating loss after exceptional items (1,081)
Finance costs (15)
Impairment loss recognised on the remeasurement
to fair value less costs to sell (149)
------------------------------------------------- -------------
Loss before taxation (1,245)
Tax -
------------------------------------------------- -------------
Loss for the period from discontinued activities (1,245)
------------------------------------------------- -------------
* See note 2 for details regarding the restatement.
Adjusted loss before taxation
6 months
to
30 September
2022
GBP'000
------------------------------------------------- -------------
Loss for the period from discontinued activities (1,245)
Exceptional items -
Amortisation of intangible assets 7
------------------------------------------------- -------------
Adjusted loss for the period from discontinued
activities (1,238)
------------------------------------------------- -------------
Earnings per share
6 months
to
30 September
2022
GBP'000
---------------------------------------------------------- -------------
Basic, loss for the period from discontinued operations (0.5)p
Diluted, loss for the period from discontinued operations (0.5)p
Adjusted, loss for the period from discontinued
operations (0.5)p
---------------------------------------------------------- -------------
6. DISCONTINUED OPERATIONS (CONTINUED)
The major classes of assets and liabilities of the Global Health
business as at 30 September 2023 are, as follows:
30 September 30 September
2023 2022
GBP'000 GBP'000
------------------------------------------------------ ------------ ------------
Assets
Property, plant, and equipment - -
------------------------------------------------------ ------------ ------------
Total assets held for sale - -
------------------------------------------------------ ------------ ------------
Liabilities
Borrowings (299) (411)
------------------------------------------------------ ------------ ------------
Total liabilities directly associated with the
assets held for sale (299) (411)
------------------------------------------------------ ------------ ------------
Net liabilities directly associated with the disposal
group (299) (411)
------------------------------------------------------ ------------ ------------
The property, plant and equipment relate primarily to COVID-19
plant and equipment no longer used in the business which have all
been written down to zero value, the liabilities relate to the hire
purchase on these assets.
7. EARNINGS PER SHARE
As restated*
6 months 6 months
to to
30 September 30 September
2023 2022
GBP'000 GBP'000
------------------------------------------------- ------------- -------------
Loss attributable to equity holders of the Group
Continuing operations (698) (842)
Discontinued operations - (1,245)
------------------------------------------------- ------------- -------------
Loss attributable to equity holders of the Group
for basic earnings (698) (2,087)
------------------------------------------------- ------------- -------------
2023 2022
Continuing operations Number Number
------------------------------------------ ----------- -----------
Weighted average number of shares 237,685,180 225,443,711
Share options - -
------------------------------------------ ----------- -----------
Diluted weighted average number of shares 237,685,180 225,443,711
------------------------------------------ ----------- -----------
* See note 2 for details regarding the restatement.
The number of shares in issue at the period end was 237,685,180.
Basic earnings per share are calculated by dividing profit for the
year attributable to ordinary equity holders of the Group by the
weighted average number of ordinary shares outstanding during the
year.
Diluted earnings per share are calculated by dividing the loss
attributable to ordinary equity holders of the Group by the
weighted average number of ordinary shares outstanding during the
year plus the weighted average number of ordinary shares that would
be issued on the conversion of all the dilutive potential ordinary
shares into ordinary shares. Diluting events are excluded from the
calculation when the average market price of ordinary shares is
lower than the exercise price.
Adjusted earnings per share on loss for the period
The Group presents adjusted earnings per share which is
calculated by taking adjusted loss before taxation and adding the
tax credit in order to allow shareholders to understand better the
elements of financial performance in the year, so as to facilitate
comparison with prior periods and to assess better trends in
financial performance.
6 months 6 months
to to
30 September 30 September
2023 2022
GBP'000 GBP'000
------------------------------------------------- ------------- -------------
Loss attributable to equity holders of the Group (698) (2,087)
Exceptional items 294 -
Amortisation of intangible assets 61 56
Share-based payment charges 17 90
------------------------------------------------- ------------- -------------
Adjusted loss attributable to equity holders of
the Group (326) (1,941)
------------------------------------------------- ------------- -------------
Adjusted loss for the year - continuing operations
The reported numbers are non-GAAP measure
6 months 6 months
to to
30 September 30 September
2023 202 2
GBP'000 GBP'000
-------------------------------------------------------- ------------- --------------
(Loss)/profit for the period from continuing operations (698) (842)
Exceptional items 294 -
Amortisation of intangible assets 61 49
Share-based payment charges 17 90
-------------------------------------------------------- ------------- --------------
Adjusted (loss)/profit for the period from continuing
operations (326) (703)
-------------------------------------------------------- ------------- --------------
* See note 2 for details regarding the restatement.
7. EARNINGS PER SHARE (CONTINUED)
Adjusted EPS on loss for the period (0.1)p (0.8)p
Adjusted EPS on loss for the period from continuing
operations (0.1)p (0.3)p
Adjusted loss before taxation, which is a key measure of the
Group's trading performance used by the Directors, is derived by
taking statutory loss before taxation and adding back exceptional
items, amortisation of intangible assets (excluding development
costs) and share-based payment charges.
8. INTANGIBLES
Licences/ Technology Customer Development
Goodwill software assets relationships costs Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- --------- ---------- ------------- ----------- -------
Cost
At 31 March 2022 3,017 1,634 1,975 100 9,181 15,907
Additions - - - - 16 16
Additions - internally generated - - - - 35 35
--------------------------------- -------- --------- ---------- ------------- ----------- -------
At 30 September 2022 3,017 1,634 1,975 100 9,232 15,958
Additions - 50 - - 50 100
Additions - internally generated - - - - (23) (23)
Reallocated from property,
plant, and equipment - 42 - - - 42
At 31 March 2023 3,017 1,726 1,975 100 9,259 16,077
Additions - 7 - - - 7
At 30 September 2023 3,017 1,733 1,975 100 9,259 16,084
--------------------------------- -------- --------- ---------- ------------- ----------- -------
Accumulated amortisation
At 31 March 2022 - 1,619 1,440 100 8,003 11,162
Amortisation charge in the
period - - 49 - 176 225
Impairment charge - 15 - - - 15
--------------------------------- -------- --------- ---------- ------------- ----------- -------
At 30 September 2022 - 1,634 1,489 100 8,179 11,402
Amortisation charge in the
period - 10 50 - 87 147
Reallocated from property,
plant, and equipment - 4 - - - 4
Currency translation - (1) - - - (1)
--------------------------------- -------- --------- ---------- ------------- ----------- -------
At 31 March 2023 - 1,647 1,539 100 8,266 11,552
Amortisation charge in the
period - 12 49 - 158 219
At 30 September 2023 - 1,659 1,588 100 8,424 11,771
--------------------------------- -------- --------- ---------- ------------- ----------- -------
Net book value
At 30 September 2023 3,017 74 387 - 835 4,313
--------------------------------- -------- --------- ---------- ------------- ----------- -------
At 31 March 2023 3,017 79 436 - 993 4,525
--------------------------------- -------- --------- ---------- ------------- ----------- -------
At 30 September 2022 3,017 - 486 - 1,053 4,556
--------------------------------- -------- --------- ---------- ------------- ----------- -------
9. FIXED ASSETS
Right Plant
of use Leasehold and
assets improvements machinery Total
Consolidated GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- ------- ------------ --------- -------
Cost
At 31 March 2022 412 696 2,461 3,569
Additions - 1 24 25
Currency translation - - 1 1
--------------------------------- ------- ------------ --------- -------
At 30 September 2022 412 697 2,486 3,595
Additions - (1) 1 -
Reallocated to intangible assets - - (42) (42)
At 31 March 2023 412 696 2,445 3,553
Additions 202 - 10 212
Disposals (412) - - (412)
--------------------------------- ------- ------------ --------- -------
At 30 September 2023 202 696 2,455 3,353
--------------------------------- ------- ------------ --------- -------
Accumulated depreciation
At 31 March 2022 306 484 1,535 2,325
Charge in the period 44 - 76 120
Impairment to fair value - - 27 27
Currency translation - (1) - (1)
At 30 September 2022 350 483 1,638 2,471
Charge in the period 41 - 58 99
Impairment to fair value - 210 189 399
Reallocated to intangible assets - - (4) (4)
Currency translation - 1 (1) -
--------------------------------- ------- ------------ --------- -------
At 31 March 2023 391 694 1,880 2,965
Charge in the period 46 - 62 108
Disposals (412) - - (412)
At 30 September 2023 26 694 1,942 2,662
--------------------------------- ------- ------------ --------- -------
Net book value
At 30 September 2023 177 2 513 692
--------------------------------- ------- ------------ --------- -------
At 31 March 2023 21 2 565 588
--------------------------------- ------- ------------ --------- -------
At 30 September 2022 62 214 848 1,124
--------------------------------- ------- ------------ --------- -------
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END
IR BRBDBIXDDGXD
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November 23, 2023 02:00 ET (07:00 GMT)
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