TIDMORPH
RNS Number : 6890Y
Open Orphan PLC
08 September 2022
Open Orphan plc
("Open Orphan" or the "Group")
Interim results and Trading Update
Continued profitability and double-digit EBITDA margin
achieved
Open Orphan plc (AIM: ORPH), (to be renamed hVIVO plc (AIM: HVO)
effective 26 October 2022), a rapidly growing specialist contract
research organisation (CRO) and the world leader in testing
infectious and respiratory disease vaccines and antivirals using
human challenge clinical trials, announces its unaudited interim
results for the six months ended 30 June 2022.
Financial highlights
-- Revenue of GBP18.9m (H1 2021: GBP23.2m), with a strong order book for delivery in H2 2022
o Management reiterates full year revenue guidance of c. GBP50m,
underpinned by robust trading in July and August and record
contracted order book increased nearly threefold to c. GBP70m as at
30 June 2022 (H1 2021: GBP25m)
-- EBITDA growth of c.10% to GBP2.3m (H1 2021: GBP2.1m) with
significantly increased EBITDA margins of 12.1% (H1 2021: 8.9%)
-- Cash generative with cash equivalents of GBP15.9m (H1 2021: GBP14.9m) as at 30 June 2022
Operational highlights
-- Agreement with Vaxart Inc. to develop an Omicron COVID-19
human challenge model with the intent to conduct a subsequent
Omicron human challenge study in 2023
-- Commenced first full-service influenza challenge model
programme for a top five global pharmaceutical client (GBP14.7m
contract)
-- Other significant contract wins include GBP7.3m influenza
challenge trial signed with a European biotech, GBP7.2m respiratory
syncytial virus ("RSV") human challenge study with top five global
pharma company and GBP5m RSV challenge trial signed with a European
Biotech
-- Modest investment in hVIVO's facilities enabled the Group to
significantly expand screening capacity:
o Doubled volunteer screening capacity to 1,000 per week
o Opened a new primary FluCamp volunteer recruitment facility in
Whitechapel, increasing bed capacity by 44% from 43 beds to 62
beds
o Opened a new Manchester volunteer recruitment and screening
centre
o hVIVO's primary lab at QMB expanded and new satellite lab
facilities were added in the new screening sites in Whitechapel
(East London) and Manchester
-- Broadened the scope of the business to offer Phase II / III field based studies
o First contract awarded by existing Big Pharma client to act as
a vaccination site for a Phase II field study
-- Launched a new Malaria human challenge model to offer anti-parasite challenge models
-- Yamin 'Mo' Khan appointed Chief Executive Officer in February
2022, strengthening Executive Management Team and bringing
significant CRO experience
-- Martin Gouldstone appointed Independent Non-Executive
Director, adding strong corporate development experience in the
CRO, healthcare and pharmaceutical sectors
Post-period end highlights
-- GBP10.4m contract for a new full-service challenge model
development programme with an existing top 5 global pharmaceutical
client
-- GBP6.2m Influenza human challenge study contract with US
biotechnology company Cocrystal Pharma Inc.
-- hVIVO's laboratory received College of American Pathologists
("CAP") accreditation increasing its marketability to provide third
party laboratory services
-- Revenue for July and August of c.GBP9m with cash balance of c. GBP20m as at 1 September 2022
-- As announced this morning, the Group intends to change its
name to hVIVO plc, which it expects to take effect on the AIM
market of the London Stock Exchange and the Euronext Growth
Exchange on 26 October 2022
Current trading and outlook
As at 1 September 2022, Open Orphan's order book of signed
contracts has increased further to c. GBP80m, which is expected to
be recognised across 2022, 2023 and 2024, and remains well
capitalised with a cash balance of c.GBP20m.
Over the period, Open Orphan has further grown its pipeline of
new opportunities, with a number of advanced negotiations ongoing
with new and existing clients across the Group's world leading
portfolio of human challenge models. This growth is being driven by
the Group's competitive position as market leader coupled with the
increasing demand for human challenge services in the rapidly
expanding infectious and respiratory disease clinical trials
market.
Management is committed to the long-term growth of the Group and
is focused on strengthening its position as a partner of choice to
the global biopharma industry, to which it counts four of the top
10 global biopharma companies as regular repeat clients. To further
drive future growth, the Group has expanded and diversified its
offering, and is currently adding new challenge models to its
portfolio such as Omicron and a new influenza strain. In addition,
hVIVO has expanded its screening facilities, adding new lab and
clinical services. Furthermore, Venn has expanded its service
offering into new areas including Advanced Therapy Medicinal
Products services (ATMP) as it continues to deliver its services to
a wider range of clients.
These developments, in addition to an exceptionally strong start
to H2 2022, reaffirm the Board's confidence of meeting current
expectations for FY2022. The Group remains well positioned and well
capitalised to deliver sustainable long-term profitability
targeting double digit EBITDA profit margins of between 13-15%.
Yamin 'Mo' Khan, Chief Executive Officer of Open Orphan, said:
"I am pleased to report that the Group has leveraged the strong
foundations laid in 2021, continuing its profitable momentum into
2022. Importantly, the Group achieved double digit EBITDA profit
margins for the first time, a key goal for the business following
the first full year of EBITDA profitability last year. In the
second half, we expect revenues to grow considerably and profit
margins to increase further as a number of significant contracts
signed earlier in the year enter the clinic.
"Going forward, I am highly encouraged by the Group's
market-leading position, expanding addressable markets, and very
substantial order book. With an order book of signed contracts
worth c. GBP80m as at 1 September 2022, we have excellent forward
visibility into H2 2022 and 2023, which gives us confidence in our
ability to sustain our considerable organic growth over the long
term. The Board expects to deliver full year revenues in line with
guidance, and we look forward to the rest of 2022 and beyond with
confidence."
Investor presentation
Yamin 'Mo' Khan, Chief Executive Officer, and Leo Toole, Chief
Financial Officer, will provide a live presentation relating to the
interim results via the Investor Meet Company platform on 8
September 2022 at 18:00 BST.
The presentation is open to all existing and potential
shareholders. Investors can sign up to Investor Meet Company for
free and add to meet Open Orphan here.
Interested in becoming a volunteer?
hVIVO recruits many of its volunteers for its challenge study
clinical trials through its dedicated volunteer recruitment
website, www.flucamp.com . By volunteering to take part in one of
our studies in a safe, controlled, clinical environment under
expertly supervised conditions you are playing your part to further
medical research and help increase the understanding of respiratory
illnesses.
For further information please contact:
Open Orphan plc 44 (0) 20 7756 1300
Yamin 'Mo' Khan, Chief Executive
Officer
Liberum Capital (Nominated Adviser
and Joint Broker) +44 (0) 20 3100 2000
Ben Cryer/ Edward Mansfield/ Phil
Walker/ Will King
finnCap plc (Joint Broker) +44 (0) 20 7220 0500
Geoff Nash / James Thompson / Richard
Chambers
Davy (Euronext Growth Adviser and
Joint Broker) +353 (0) 1 679 6363
Anthony Farrell
Walbrook PR (Financial PR & IR) +44 (0)20 7933 8780 or openorphan@walbrookpr.com
Stephanie Cuthbert / Phillip Marriage +44 (0)7796 794 663/ +44 (0) 7867
/ 984 082 /
Louis Ashe-Jepson +44 (0)7747 515393
Notes to Editors
Open Orphan plc
Open Orphan plc (London and Euronext: ORPH) is changing its name
to hVIVO plc (AIM and Euronext: HVO), which is expected to take
effect on the AIM market of the London Stock Exchange and the
Euronext Growth Exchange market on 26 October 2022.
hVIVO is a rapidly growing contract research company that is a
world leader in testing infectious and respiratory disease products
using human challenge clinical trials. The Company provides
services to Big Pharma, biotech, and government/public health
organisations.
The Company has a leading portfolio of human challenge study
models for infectious and respiratory diseases, including the
recently established COVID-19 model, and is developing a number of
new models, such as Malaria, to address the dramatic growth of the
global infectious disease market. The Paris and Breda offices have
over 25 years of experience providing drug development services
such as biometry, data management, statistics CMC, PK and medical
writing to third party clients as well as supporting the
London-based challenge studies.
hVIVO runs challenge studies in London from its Whitechapel
quarantine clinic, its state-of-the-art QMB clinic with its highly
specialised on-site virology and immunology laboratory, and its
newly opened clinic in Plumbers Row. To recruit volunteers /
patients for its studies, the Company leverages its unique clinical
trial recruitment capacity via its FluCamp volunteer screening
facilities in London and Manchester. The newly opened facilities
have expanded the scope of the business to enable the offering of
Phase I and Phase II vaccine field trials, PK studies, bridging
studies, and patient trials as part of large international
multi-centre studies.
CEO Statement
Introduction
I am delighted with the progress the Group has made since my
appointment as CEO earlier this year. During the period, we have
made significant strides, building on the strong foundations laid
in 2021, enabling the delivery of long term revenue growth and
sustainable profitability.
Sustainable growth in profitability
The Group has continued its momentum following our first full
year of profitability in 2021. Increased operational productivity
and efficiency has contributed to an improved EBITDA margin of
12.1% (2021: 8.9%) during the first half of 2021. In H2, we expect
to see further utilisation and productivity gains, with the Group
targeting double digit EBITDA margin of between 13-15% for the full
year.
The Group delivered GBP18.9m of revenue in H1 (2021: GBP23.2m).
We remain very confident of achieving our target of c. GBP50m
revenue for FY 2022, supported by our record contracted order book
of c. GBP80m as at 1 September 2022 and our increased operational
capacity.
The Group is very well capitalised with GBP15.9m cash as at 30
June 2022 (2021: GBP14.9m) and net cash post period end of c.
GBP20m as at 1 September 2022. As a result, the Group is well
positioned to deliver future growth.
Customer delivery
The Group is a trusted partner to the global biopharma industry,
with world-class capabilities in challenge agent manufacture, a
unique portfolio of human challenge models, and specialist drug
development and clinical consultancy services. The Group has an
extensive range of Big Pharma and biotech clients, many of which
are repeat, multi-year customers.
hVIVO signed five significant contracts in the period, across
RSV, influenza, and COVID-19, with the revenues from these
contracts set to be recognised across H2 2022 and FY 2023, further
contributing to our robust contracted order book, which stands at
c. GBP80m as at 1 September 2022.
Biopharma companies are increasingly seeing the significant
benefits of the early human efficacy data that can be generated
from human challenge studies. In H1 2022, two of our clients
obtained Breakthrough Therapy designation from the US Food and Drug
Administration ("FDA") because of the successful clinical data
achieved from hVIVO challenge trials.
In March, we expanded our hVIVO facilities, including doubling
our FluCamp volunteer screening capacity and increasing our number
of beds. This allowed us to expand the scope of the business to
offer additional services including clinical field trial services.
The increased volunteer recruitment capacity enables the Group to
recruit larger cohorts more quickly, cementing our position as a
leader in volunteer recruitment. We now also have the potential to
utilise volunteers who are not suitable for challenge trials into
non-challenge trials.
Our primary hVIVO lab at QMB has been expanded and new satellite
lab facilities have been added in our new screening sites in
Plumbers Row (East London) and Manchester. In addition, we received
College of American Pathologists ("CAP") accreditation, increasing
hLAB's marketability to provide third party laboratory services
including virology, immunology biomarker and molecular testing.
This is the first step towards expanding our standalone lab
services business, under the hLAB brand and will be an additional
revenue driver for the Group.
Outlook
We look forward to building on the excellent progress that we
have made during H1, as we deliver on our core business for our
clients whilst also leveraging our newly diversified offering.
Increased revenues and profit margins
Increased recruitment capacity and new revenues streams in
conjunction with our record order book of future contracted revenue
underpin our confidence in achieving our current expectations for
FY2022, with continued growth in FY 2023. This is further
demonstrated by strong trading performance with revenues of c.
GBP9m across July and August 2022.
The investment in our facilities expansion has further enhanced
and diversified our revenue potential. We signed our first contract
under our expanded services in May 2022, acting as a vaccination
site for a Phase II field study for an existing Big Pharma client's
RSV vaccine candidate. The work associated with our expanded
offering can be performed by utilising our existing staff and
infrastructure. For future contracts that may involve the sourcing
of volunteers, we will also be able to leverage our FluCamp
database of volunteers that were previously found to be unsuitable
for challenge studies, generating additional high-margin revenue
streams for the Group.
Challenge models
We expect our influenza and RSV challenge models to continue to
be the key revenue drivers for the core business. However, we are
seeing increased interest across the entire spectrum of infectious
and respiratory disease, driving our pipeline to record levels.
We signed our largest commercial challenge programme contract
with an existing top five global pharmaceutical client earlier this
year, worth GBP14.7m. This includes the manufacture of an influenza
subvariant challenge agent, and a subsequent characterisation study
and challenge trial. Furthermore, we recently signed a GBP10.4m
contract with another repeat top 5 global pharmaceutical client to
manufacture a new influenza challenge virus, leveraging an existing
in-house generated challenge model. The Group will subsequently
conduct a human challenge trial to test the client's antiviral
product. These full-service contracts are significant growth
drivers for the Group.
In June 2022, we announced the development of the world's first
Omicron human challenge model and we remain on track to complete
the challenge agent manufacture. Following manufacture, we intend
to conduct a characterisation study followed by Omicron human
challenge studies in 2023.
We continue to see significant interest in our HRV-asthma model
as we look to increase our penetration in the respiratory market.
Furthermore, the launch of our malaria model is attracting
substantial interest and we are in line to conduct our first
anti-parasitic study in the near future.
Venn Life Sciences
Our Venn Life Sciences teams in Paris and Breda continue to
deliver exceptional drug development consultancy services enabling
its clients to bring their products to the market quickly and
efficiently. Venn is a trusted partner to an extensive range of
clients, and our highly skilled scientific team have helped nurture
several long-term client relationships.
Venn's offering is highly synergistic with hVIVO, with
preclinical work leading to follow-on clinical programmes providing
an end-to-end early clinical development service. This was
illustrated by the GBP5m RSV human challenge study contract signed
in March 2022 with a European biotech, resulting from pre-clinical
work completed by the Venn Breda team.
Order book and pipeline
Our contracted order book has increased to record size, growing
threefold to c. GBP70m at 30 June 2022 (H1 2021: GBP25m), and
growing further to c. GBP80m as at 1 September 2022. This gives us
clear visibility over our revenues until the end of FY 2023 and
beyond. I have been delighted with our ability to secure these
contracts showcasing the value that our Big Pharma and biotech
clients attribute to conducting a challenge trial.
Name Change
The Group has announced its intention to change its name to
hVIVO plc, which is expected to take effect on the AIM market of
the London Stock Exchange and the Euronext market on 26 October
2022. The Board believes that the name change better reflects the
Group's core human challenge and early clinical services business,
where the hVIVO name has strong brand recognition, as well as
aligning the Group more closely with its long and established
heritage.
Summary
We are committed to the long-term growth of the Group and are
focused on strengthening our position as the partner of choice to
the global biopharma industry. I am delighted with the progress
that we have made in H1 2022. The team has made great strides in
winning significant new contracts, realising efficiencies to
improve profitability, and expanding our facilities to address the
increased demand for our services. Our newly diversified offering
and upgraded operational infrastructure, coupled with the surging
interest in human challenge trials and the wider growth of the
infectious disease clinical trial market, means we are well placed
to deliver on and continue to grow our order book and leverage new
opportunities. I am excited by what the future holds for the Group
and our ability to deliver long term sustainable growth.
Yamin 'Mo' Khan
Chief Executive Officer
8 September 2022
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
6 Months ended 6 Months ended Year
30 June 2022 30 June 2021 ended
Unaudited Unaudited 31 Dec
2021
Audited
Note GBP'000 GBP'000 GBP'000
-------------------------------------- --------------- --------------- ---------
Operations
Revenue, from contracts with
customers 18,010 21,946 36,864
Other operating income 861 1,220 2,141
Direct project and
administrative costs (16,581) (21,093) (36,117)
------------------------------ ------- --------------- --------------- ---------
EBITDA before exceptional
items 2,290 2,073 2,888
Depreciation and
amortisation (1,436) (1,409) (2,565)
Exceptional items (186) 965 267
Operating Profit 668 1,629 590
Finance expense (172) (111) (215)
Share based payment charge 7 (18) - (27)
Share of loss of associate
using equity method 5 (25) (64) (71)
Profit before income tax 453 1,454 277
Income tax (charge) (176) (187) (351)
------------------------ ------------- --------------- --------------- ---------
Profit/(Loss) for the
period 277 1,267 (74)
Profit/(Loss) for the year is
attributable to:
Owners of the parent 277 1,267 (74)
---------------------- --------------- --------------- --------------- ---------
Other comprehensive income
Currency translation
differences (173) (336) (111)
Total comprehensive
profit/(loss) for the period 104 931 (185)
-------------------------------- ----- --------------- --------------- ---------
Earnings per share from operations
attributable to the owners of the parent during the
period
Basic and diluted Note
Profit/(loss) per ordinary
share
From operations 3 0.04p 0.19p (0.01p)
-------------------------------- ----- --------------- --------------- ---------
For the period 0.04p 0.19p (0.01p)
-------------------------- ----------- --------------- --------------- ---------
Consolidated Statement of Financial Position
As at 30 June 2022
6 months 6 months ended Year
ended ended
30 June 2022 30 June 2021 31 Dec 2021
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
---------------------------------- ----- ------------- --------------- ------------
Assets
Non-current assets
Intangible assets 6,200 6,194 6,219
Property, plant and equipment 1,496 1,077 927
Investment in associates 6 6,980 7,012 7,005
Right-of-use leased assets 2,178 2,358 2,788
Total non-current assets 16,854 16,641 16,939
---------------------------------- ----- ------------- --------------- ------------
Current assets
Inventories 687 729 659
Trade and other receivables 13,371 8,977 8,944
Current tax recoverable - 28 38
Cash and cash equivalents 15,932 14,910 15,694
---------------------------------- ----- ------------- --------------- ------------
Total current assets 29,990 24,644 25,335
---------------------------------- ----- ------------- --------------- ------------
Total assets 46,844 41,285 42,274
---------------------------------- ----- ------------- --------------- ------------
Equity attributable to owners
Share capital 4 671 671 671
Share premium account 4 1 - 1
Merger reserve (6,856) (6,856) (6,856)
Foreign currency reserves 1,158 1,106 1,331
Share option and warrant reserve 345 493 327
Retained earnings 4 25,483 26,353 25,206
---------------------------------- ----- ------------- --------------- ------------
Total equity 20,802 21,767 20,680
---------------------------------- ----- ------------- --------------- ------------
Liabilities
Non-current liabilities
Trade and other payables - - -
Lease liabilities 752 520 863
Leasehold provision 40 20 40
Total non-current liabilities 792 540 903
---------------------------------- ----- ------------- --------------- ------------
Current liabilities
Trade and other payables 23,729 16,934 18,396
Deferred taxation - 25 -
Lease liabilities 1,425 1,696 1,991
Leasehold provision 10 - 10
Borrowings 86 323 294
Total current liabilities 25,250 18,978 20,691
---------------------------------- ----- ------------- --------------- ------------
Total liabilities 26,042 19,518 21,594
---------------------------------- ----- ------------- --------------- ------------
Total equity and liabilities 46,844 41,285 42,274
---------------------------------- ----- ------------- --------------- ------------
Consolidated Statement of Changes in Shareholders' Equity
Share Option &
Share Share Merger Warrant Foreign Currency Retained
capital premium reserves reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
At 1 January 2021 731 44,480 (6,856) 493 1,442 (17,993) 22,297
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Changes in equity
for 6 months
ended 30 June 2021
Total profit for the
period - - - - - 1,267 1,267
Currency translation
differences - - - - (336) - (336)
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Total comprehensive
profit for
the period - - - - (336) 1,267 931
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Transactions with
the owners
Shares issued 3 36 - - - - 39
Capital reduction (63) (44,516) - - - 44,579 -
Distribution in
specie - - - - - (1,500) (1,500)
At 30 June 2021 671 - (6,856) 493 1,106 26,353 21,767
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Changes in equity
for 6 months
ended 31 December
2021
Total loss for the
period - - - - - (1,341) (1,341)
Currency translation
differences - - - - 225 - 225
Total comprehensive
loss for
the period - - - - 225 (1,341) (1,116)
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Transactions with
the owners
Shares issued - 1 - - - - 1
Share based payment
exercised - - - (193) - 193 -
Share based payment
charge - - - 27 - - 27
At 31 December 2021 671 1 (6,856) 327 1,331 25,206 20,680
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Changes in equity
for 6 months
ended 30 June 2022
Total profit for the
period - - - - - 277 277
Currency translation
differences - - - - (173) - (173)
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Total comprehensive
profit for
the period - - - - (173) 277 104
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Transactions with
the owner
Shares issued - - - - - - -
Share based payment
charge - - - 18 - - 18
At 30 June 2022 671 1 (6,856) 345 1,158 25,483 20,802
-------------------- --------- --------- --------- -------------------- -------------------- ---------- -------
Consolidated Statement of Cash Flows
For the 6 months ended 30 June 2022
6 Months ended 6 Months ended Year
30 Jun 2022 30 Jun 2021 ended
Unaudited Unaudited 31 Dec 2021
GBP'000 GBP'000 Audited
GBP'000
--------------------------------------------------------- --------------- --------------- -------------
Cash used in operations
Profit before income tax 453 1,454 277
Adjustments for:
- Depreciation & amortisation 1,436 1,409 2,565
- Exceptional items 186 (965) (267)
- Net (gain)/loss on disposals of fixed assets & leases (19) - 189
- Finance expense 172 111 215
- Share based payment charge 18 - 27
- R & D Credit Incl. in other income (724) (1,067) (1,842)
- Share of Imutex loss 25 64 71
Changes in working capital:
- Lease payments (1,163) (1,176) (2,329)
- (Increase)/Decrease Trade and other receivables (4,389) 881 904
- (Increase)/Decrease Inventories (28) 224 294
- Increase/(Decrease) Trade and other payables 5,333 (4,464) (2,972)
---------------------------------------------------------- --------------- --------------- -------------
Net cash generated/(used) in operations 1,300 (3,529) (2,868)
Income tax (R & D Credit) received - - 1,304
---------------------------------------------------------- --------------- --------------- -------------
Net cash generated/(used) in operating activities 1,300 (3,529) (1,564)
---------------------------------------------------------- --------------- --------------- -------------
Cash flow from investing activities
Purchase of property, plant and equipment (858) (259) (329)
Purchase of intangible assets (79) (132) (410)
Net cash used in investing activities (937) (391) (739)
---------------------------------------------------------- --------------- --------------- -------------
Cash flow from financing activities
Proceeds from issuance of ordinary shares & options - 21 40
Exceptional items (paid) (85) (472) (1,169)
Net Interest (paid) (6) (5) (21)
Loan Note redemptions (208) (45) (45)
Net cash used in financing activities (299) (501) (1,195)
---------------------------------------------------------- --------------- --------------- -------------
Net increase/(decrease) in cash and cash equivalents 64 (4,421) (3,498)
Cash and cash equivalents at beginning of period 15,694 19,205 19,205
FX translation 174 126 (13)
---------------------------------------------------------- --------------- --------------- -------------
Cash and cash equivalents at end of period 15,932 14,910 15,694
---------------------------------------------------------- --------------- --------------- -------------
NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
1. General information
Open Orphan Plc is a company incorporated in England and Wales.
The Company is a public limited company, limited by shares, listed
on the AIM market of the London Stock Exchange and on Euronext
Growth in Dublin. The address of the registered office is Queen
Mary Bio Enterprises, Innovation Centre, 42 New Road, London, E1
2AX, UK.
The principal activity of the Group is that of a rapidly growing
specialist CRO pharmaceutical services company which is the world
leader in the testing of vaccines and antivirals using human
challenge clinical trials. The Group has a presence in the UK,
Ireland, France and Netherlands.
The financial statements are presented in GBPGBP'000 (except
where indicated otherwise), the currency of the primary economic
environment in which the Group's trading companies operate. The
Group comprises Open Orphan Plc and its subsidiary companies.
The registered number of the Company is 07514939.
2. Basis of preparation and accounting policies
The consolidated financial statements of Open Orphan Plc have
been prepared in accordance with UK adopted international
accounting standards (IFRSs), IFRIC interpretations and the
Companies Act 2006 applicable to companies reporting under
IFRS.
The consolidated financial statements have been prepared under
the historical cost convention.
The accounting policies applied by the Group in this financial
information are the same as those applied by the Group in its
financial statements for the year ended 31 December 2021 and which
will form the basis of the 2022 financial statements.
The financial information presented herein does not constitute
full statutory accounts under Section 434 of the Companies Act 2006
and was not subject to a formal review by the auditors. The
financial information in respect of the year ended 31 December 2021
has been extracted from the statutory accounts which have been
delivered to the Registrar of Companies. The Group's Independent
Auditor's report on those accounts was unqualified, did not include
references to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and did not contain
a statement under section 498(2) or 498(3) of the Companies Act
2006. The financial information for the half years ended 30 June
2022 and 30 June 2021 is unaudited and the twelve months to 31
December 2021 is audited.
There are no material events to report after the end of the
reporting period.
The Interim Financial Statements were approved by the Board of
Directors on 07 September 2022.
3. Earnings per share
(a) Basic
Basic earnings per share is calculated by dividing the profit/
(loss) attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period.
6 Months ended 6 Months Year
30 Jun 2022 ended ended
Unaudited 30 Jun 2021 31 Dec 2021
GBP'000 Unaudited Audited
GBP'000 GBP'000
Profit/(Loss) from continuing operations
attributable to equity holders of the Company 277 1,267 (74)
------------------------------------------------- --------------- ------------- -----------------
Total 277 1,267 (74)
------------------- ------------- ------ -------------
Weighted-average Ordinary Shares in issue 670,929,314 669,501,577 670,187,313
Earnings per Share (GBP pence) 0.04 0.19 (0.01)
(b) Diluted
Due to the profitable result in the period the effect of the
share options and warrants noted below maybe considered to be
dilutive. In prior periods due to losses, they were considered
anti-dilutive.
6 Months 6 Months Year
ended ended ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
Unaudited Unaudited Audited
Potential dilutive ordinary
shares:
Options 8,393,213 8,467,525 8,393,213
Warrants 2,264,427 2,264,427 2,264,427
----------------------------------------- ---------------------- ---------------------- ----------------------
Total 10,657,640 10,731,952 10,657,640
----------------------------------------- ---------------------- ---------------------- ----------------------
4. Prior year Capital Reduction and Distribution-in-Specie
On 19 May 2021, Open Orphan PLC received Court approval for
reduction in its capital. Consequently, the deferred share capital
balance of GBP62,833 was bought back by the Company and the balance
in the Share Premium account of GBP44,516,591 of the Company was
transferred to retained earnings.
On 18 June 2021, Open Orphan Plc made a distribution in specie
to all shareholders on the share register at close of business on
17 June 2021. Shareholders received shares in Poolbeg Pharma Ltd.
These shares were held in trust by Croft Nominees Limited for a
period of 9 months following Poolbeg Pharma Ltd.'s admission to the
AIM market of the London Stock Exchange. Poolbeg Pharma Ltd changed
its name to Poolbeg Pharma Plc on 23 June 2021. Following a
successful period of fund-raising, Poolbeg Pharma Plc was admitted
to the AIM Market on 14 July 2021.
5. Share of loss of associates and joint ventures
hVIVO Limited holds equity investments in development stage
bio-pharmaceutical companies. As the invested companies are
incurring research and development expenditure to develop products,
no revenue will be generated, and losses will be presented, until
the products are successfully commercialised.
At 30 June 2022, the Group held an investment in one associate,
PrEP Biopharm Limited, and one joint venture, Imutex Limited (see
Note 6).
The carrying amount of PrEP Biopharm Limited was fully impaired
to GBPnil as at 31 December 2018 due to consideration of the then
economic performance of this asset. This impairment was not an
indication or an opinion on the utility of PrEP-001 but recognised
that further development would need additional investment, and this
was no longer part of hVIVO's re-focussed business model at that
time.
The carrying amount of the investment in Imutex Limited is
considered to be fully recoverable.
The Group's share of after- tax losses of its joint venture is
set out below:
6 Months ended 6 Months ended Year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Share of loss of joint venture (25) (64) (71)
----------------------------------- --------------- --------------- -------------
Share of total comprehensive loss (25) (64) (71)
----------------------------------- --------------- --------------- -------------
6. Investment in associates and joint ventures
A reconciliation of the carrying value of the Group's
investments in joint ventures and associates is as follows:
6 Months ended 6 Months ended Year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
At start of period 7,005 7,076 7,076
Share of loss of associate using
equity method (25) (64) (71)
---------------------------------- --------------- --------------- -------------
At end of period 6,980 7,012 7,005
---------------------------------- --------------- --------------- -------------
7. Share based payments
There was a share-based payment charge in the period of
GBP18,000 (H1 2021: Nil).
8. Press
A copy of this announcement is available from the Company's
website, being www.openorphan.com. If you would like to receive a
hard copy of the interim report, please contact the Open Orphan Plc
offices on +353 1 644 0007 to request a copy.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR EAENXEAAAEAA
(END) Dow Jones Newswires
September 08, 2022 02:02 ET (06:02 GMT)
Venn Life Sciences (LSE:VENN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Venn Life Sciences (LSE:VENN)
Historical Stock Chart
From Jul 2023 to Jul 2024