TIDMPXS
RNS Number : 7739L
Provexis PLC
31 December 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
31 December 2018
Provexis plc
UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER
2018
Provexis plc ("Provexis" or the "Company"), the business that
develops, licenses and sells the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, announces its
unaudited interim results for the six months ended 30 September
2018.
Highlights
-- Total revenue for the period of GBP194k, 56% ahead of the prior year (2017: GBP124k).
-- Planned launch by BY-HEALTH of a number of Fruitflow(R) based
products in the Chinese market progressing well, with two studies
successfully completed, one study currently ongoing at a clinical
site and three further planned human studies confirmed by
BY-HEALTH. The two completed studies (a human study and an animal
study) showed excellent results in use for Fruitflow(R).
-- The six studies outlined are being conducted at BY-HEALTH's
sole expense, a substantial investment in the Fruitflow(R) based
products which BY-HEALTH plans to launch in China. Studies
conducted in China are needed to obtain 'blue cap' health claim
status for dietary supplements, as required by the Chinese State
Administration for Market Regulation (SAMR), with BY-HEALTH
intending to make its first submission to the SAMR for Fruitflow(R)
in February 2019.
-- The MOU for a research and collaboration agreement for
Fruitflow(R) between the Company and BY-HEALTH, a GBP3bn listed
Chinese dietary supplement business, remains on track with the
research project scheduled to take place in the first half of 2019,
effectively being a seventh BY-HEALTH study.
-- The Company and its commercial partner DSM have seen an
encouraging increase in brand awareness and customer interest in
Fruitflow(R) over the last three years, with the total projected
annual sales value of the prospective sales pipeline for Fruitflow
now standing at a substantial multiple of existing annual
sales.
-- Fruitflow(R)+ Omega-3 launched in Holland & Barrett in
August 2018, with a listing in more than 660 Holland & Barrett
stores across the UK and Ireland giving Fruitflow(R)+ Omega-3
widespread consumer exposure. Holland & Barrett's loyalty
programme, Rewards for Life, has over 10 million members in the UK
and it is intended that Fruitflow(R)+ Omega-3 will be promoted by
email to Holland & Barrett's online customers.
-- Further encouraging progress from the Company's Fruitflow(R)+
Omega-3 dietary supplement direct sales business, which sells from
the Company's website www.fruitflowplus.com and Amazon UK. Further
UK and international sales channel opportunities are currently
being progressed.
-- Planned formulation and launch of a Fruitflow(R)+ nitrates
dietary supplement product is progressing well, with the
involvement of third-party manufacturers, and interest from brand
owners. Strong patent position for this formulation, with further
interest in the role of Fruitflow(R) in exercise generated by Team
Sunweb Pro Cycling's use of Fruitflow(R) in the 2018 Tour de
France.
-- The Company raised a gross GBP395k through a placing of new
ordinary shares at 0.40p per share, completed in October 2018.
-- Underlying operating loss* GBP154k (2017: GBP146k),
reflecting increased patent costs in the period.
-- Cash GBP556k at 30 September 2018 (2017: GBP483k), which
includes GBP395k of funds received in advance of the share placing
referred to above.
*before share based payments of GBP75k (2017: GBP43k), as set
out on the face of the Consolidated Statement of Comprehensive
Income
Provexis Executive Chairman Dawson Buck commented:
'The Company has seen a strong start to the 2018/19 financial
year, with total revenues 56% ahead of the prior year.
The Company was pleased to confirm a retail listing in August
2018 for Fruitflow(R)+ Omega-3 in more than 660 Holland &
Barrett stores, with further UK and international direct sales
channel opportunities for the product being progressed.
The Company has developed a strong, long lasting and wide
ranging patent portfolio for Fruitflow(R), a wholly natural
cardiovascular health product, backed by numerous published human
studies for Fruitflow(R).
The Company is well placed to maximise the numerous commercial
opportunities which the Company and DSM have been pursuing for
Fruitflow(R), to include the Company's planned collaboration with
BY-HEALTH in the vast Chinese market.
The Company would like to thank its customers and shareholders
for their continued support, and it remains positive about the
outlook for Fruitflow(R) and the Provexis business for the second
half of the year and beyond.'
For further information please contact:
Provexis plc Tel: 07490 391888
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Allenby Capital Limited (Nominated Tel: 020 3328 5656
Adviser and Broker)
Nick Naylor / Liz Kirchner
Chairman's statement
The Company has had an active first six months of the year,
seeking to enhance further the commercial prospects of its
innovative, patented Fruitflow(R) heart-health ingredient.
The Company's Alliance partner DSM Nutritional Products ('DSM')
has continued to develop the market actively for Fruitflow(R) in
all global markets. More than 90 regional consumer healthcare
brands have now been launched by direct customers of DSM, and a
number of further regional brands have been launched through DSM's
distributor channels.
The Company and DSM have seen an encouraging increase in brand
awareness and customer interest in Fruitflow(R) over the last three
years, with an increasing number of further commercial projects
being initiated with prospective customers, including some
prospective customers which are part of global businesses.
The total projected annual sales value of the prospective sales
pipeline for Fruitflow now stands at a substantial multiple of
existing annual sales.
Revenues for the period were GBP194k (2017: GBP124k), an
increase of 56% relative to the prior year.
The increase in revenue accruing to the Company for the period
reflects:
-- An increase in the net income received from the Company's
Alliance Agreement with DSM, which grew by 34% to GBP120k in the
six months ended 30 September 2018 (2017: GBP90k);
-- An increase in revenue net of sales rebates from the
Company's Fruitflow(R)+ Omega-3 business, including Holland &
Barrett, the Company's website www.fruitflowplus.com and Amazon UK,
which grew by 36% year on year to GBP47k in the six months ended 30
September 2018, compared to GBP34k in the six months ended 30
September 2017.
-- Amounts in excess of GBP26k which were received in the period
for marketing support, compared to amounts of GBPNil which were
received in the prior year.
Underlying operating loss for the period was GBP154k (2017:
GBP146k), reflecting a GBP38k year on year increase in research and
development costs in the period.
The increase in research and development costs in the period was
primarily due to Fruitflow(R) antihypertensive (blood pressure
lowering) patents entering the national phase of the patent
application process, a one-off event in this process. Patent
applications typically enter the national phase approximately three
years after the filing date of the initial application, with this
phase representing the most significant pre-patent grant costs.
Antihypertensive (blood pressure lowering) patents have now been
granted for Fruitflow(R) in Europe, Australia, Hong Kong and New
Zealand, and patent applications are being progressed in a further
five major territories to include the US and China.
BY-HEALTH Co., Ltd
The Company has previously announced that it was working with
DSM and BY-HEALTH Co., Ltd ('BY-HEALTH'), a GBP3bn listed Chinese
dietary supplement business, to support the planned launch of some
Fruitflow(R) based products in the Chinese market.
The planned launch of a number of Fruitflow(R) based products in
the Chinese market, with potentially substantial volumes, is
progressing well, with activities driven at present by the need to
obtain 'blue cap' health claim status for Fruitflow(R) as a dietary
supplement with the State Administration for Market Regulation
(SAMR), a new Chinese market regulator which has taken over the
responsibilities of the former China Food and Drug Administration
(CFDA).
Clinical studies conducted in China are typically required to
obtain blue cap health claim status, and a significant investment
in six separate studies, in support of the Fruitflow(R) based
products which BY-HEALTH plans to launch in China, is being
undertaken at BY-HEALTH's expense.
Two studies have been successfully completed in China, one study
is currently ongoing at a Chinese clinical site and three further
planned human studies in 2019 have been confirmed by BY-HEALTH.
The two completed studies (a human study and an animal study)
showed excellent results in use for Fruitflow(R), and BY-HEALTH
intends to make its first blue cap submission to the SAMR for
Fruitflow(R) in February 2019, with a further blue cap submission
envisaged later in 2019, both to include references to the
Company's existing European Food Safety Authority ('EFSA') health
claim for Fruitflow.
It was originally envisaged that a first consumer product would
be launched by BY-HEALTH in the second half of 2017, but in part
due to the limitations of non blue cap status it was decided to
focus instead on obtaining a blue cap health claim for
Fruitflow(R), hence the substantial investment in the studies
outlined above.
BY-HEALTH has launched a Fruitflow(R) sports nutrition product
in China under its GymMax brand, for the exclusive use of Chinese
national athletes.
In April 2017 the Company announced it had entered into a
memorandum of understanding with BY-HEALTH, intended to result in a
research and collaboration agreement with BY-HEALTH for
Fruitflow(R) focussing on BY-HEALTH's research programme into the
development of new products that contribute to cardiovascular
health, particularly in the field of blood pressure regulation.
The proposed research and collaboration agreement is intended to
include a clinical trial which will be conducted in China, and it
is now intended that the Company, BY-HEALTH and a third-party
Chinese research organisation will sign the research and
collaboration agreement in the first half of 2019, with the bulk of
the research programme to be completed in 2019. This will
effectively be BY-HEALTH's seventh clinical study for
Fruitflow(R).
It is envisaged that the Company and BY-HEALTH will jointly
provide primary funding for the research and collaboration work
which will include the assessment of a number of different
potential product formulations. Product formulations which are
covered under the Company's existing patents would continue to be
owned outright by the Company, and the Company would retain
proportional joint ownership of any new product formulations
developed as part of the project.
It is envisaged that the Company will provide scientific and
technical support for Fruitflow(R) to BY-HEALTH throughout the
collaboration, with further potential research projects for
Fruitflow(R) between the Company and BY-HEALTH now under active
discussion.
There are more than 230m people in China who are currently
thought to have cardiovascular disease, and a significant increase
in cardiovascular events is expected in China over the course of
the next decade based on population aging and growth alone (source:
World Health Organisation - Cardiovascular diseases, China). China
is now the world's second-largest pharmaceuticals market, measured
by how much patients and the state spend on drugs (source:
health-care information company IQVIA). The Company believes that
Fruitflow(R) has the potential to play an important role in the
Chinese cardiovascular health market.
Fruitflow(R)+ Omega-3 dietary supplement product - launch in
Holland & Barrett
In June 2018 the Company announced it had secured a retail
listing with Holland & Barrett for the Company's Fruitflow(R)+
Omega-3 dietary supplement product.
Holland & Barrett is Europe's largest health and wellbeing
retailer (source: www.hollandandbarrett.com/info/who-we-are),
supplying its customers with a wide range of vitamins, minerals,
health supplements, specialist foods and natural beauty
products.
The product was launched in Holland & Barrett in August
2018, with a listing in more than 660 Holland & Barrett stores
across the UK and Ireland giving Fruitflow(R)+ Omega-3 widespread
consumer exposure.
Holland & Barrett's loyalty programme, Rewards for Life, has
over 10 million members in the UK and is free for customers to
join. Holland & Barrett has also recently introduced a
personalised Healthbox service, providing nutritionist recommended
vitamins and supplements to their customers along with health tips.
Holland & Barrett's Rewards for Life programme and their new
Healthbox service will facilitate more direct communications with
their customers, and both are expected to provide opportunities to
highlight the unique benefits of Fruitflow(R)+ Omega-3.
The product listing is being supported by a number of ongoing
staff training, consumer marketing and promotional initiatives, to
include Holland & Barrett's in-house Healthy magazine and its
website www.hollandandbarrett.com.
The Company's Fruitflow(R)+ Omega-3 dietary supplement business
is complementary to its long-term Alliance Agreement with DSM and
it is supported by DSM, reflecting the continued strength of the
relationship between Provexis and DSM and the shared interest of
both companies in seeking to maximise the commercial returns that
can be achieved from Fruitflow(R). The Company's Fruitflow(R)+
Omega-3 dietary supplement business is expected to provide the
Company with an additional long-term income and profit stream, and
all of the revenue and costs attributable to the listing with
Holland & Barrett will accrue to Provexis.
The Company had a substantial batch of Fruitflow(R)+ Omega-3
capsules manufactured in July 2018, and it developed some enhanced
product packaging which is better suited to a retail
environment.
Fruitflow(R)+ Omega-3 dietary supplement product - direct
sales
In June 2016 the Company launched its Fruitflow(R)+ Omega-3
dietary supplement product, which is available through the
Company's e-commerce website www.fruitflowplus.com, and from June
2017 it became available through Amazon.co.uk. The product also has
a Facebook page at www.facebook.com/FruitflowPlus.
Total revenues net of sales rebates for the Company's
Fruitflow(R)+ Omega-3 business, to include Holland & Barrett,
the Company's website www.fruitflowplus.com and Amazon UK, grew by
36% year on year to GBP47k in the six months ended 30 September
2018, compared to GBP34k in the six months ended 30 September 2017.
Further UK and international sales channel opportunities for
Fruitflow(R)+ Omega-3 are currently being progressed, and the
Company is actively seeking to launch the product online into wider
international markets to include North America.
A dedicated product video for Fruitflow(R)+ Omega-3 is currently
being developed and it is expected to be launched in the first
quarter of 2019. A Fruitflow(R) App is also being developed,
primarily for use on mobile device platforms.
Fruitflow(R)+ nitrates dietary supplement product
In December 2013 British and international patent applications
were filed for the use of Fruitflow(R) in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise, seeking to enhance further the potential of the
technology in the sports nutrition sector. The patent was first
granted by the UK IPO (Intellectual Property Office) in May 2017,
and a further patent was granted in Australia in December 2018.
Patents are being sought in Europe, the US, China and ten other
territories, with potential patent protection out to December
2033.
The Company is progressing the formulation and launch of a
Fruitflow(R)+ nitrates dietary supplement product, which will be
supported by the Company's strong patent position in this area,
with the involvement now of third-party manufacturers and with some
interest already generated from brand owners. The product is
expected to have anti-inflammatory and circulation benefits for
athletes seeking to recover after exercise, properties which would
also be potentially beneficial to a wide range of other consumers
to include people who are less active and people who are suffering
from the symptoms of basic ageing.
Further interest in the role of Fruitflow(R) in exercise was
generated by Team Sunweb Pro Cycling's use of Fruitflow(R) in the
2018 Tour de France, with further details available on the
Company's fruitflowplus.com website at
www.fruitflowplus.com/sportrecovery and
www.fruitflowplus.com/wp-content/uploads/2018/07/FF-athletes_summary-of-background-science-for-webpage_v2.pdf
Fruitflow(R) and Blood Pressure - Collaboration with University
of Oslo
In December 2016 the Company announced that the pilot study
conducted as part of the Company's collaboration agreement with the
University of Oslo for blood pressure regulation indicated that a
150mg dose of Fruitflow(R) in powder format significantly lowered
the average 24-hour systolic blood pressure compared to placebo.
When the monitoring time was split into waking and sleeping
periods, both systolic and diastolic blood pressure were
significantly lower after 150mg Fruitflow(R) treatment than after
placebo treatment during the waking period; systolic pressure was
also significantly lower during the sleeping period.
In September 2017 the results from the blood pressure
collaboration were published in the International Journal of Food
Sciences and Nutrition, and the study is available to view on the
Company's website at:
www.provexis.org/wp-content/uploads/2017/09/IJFSN-Fruitflow-blood-pressure-study-Sep-17.pdf
Antihypertensive (blood pressure lowering) patents have now been
granted for Fruitflow(R) in Europe, Australia, Hong Kong and New
Zealand, and patent applications are being progressed in a further
five major territories to include the US and China, with potential
patent protection out to April 2033.
Patent application - Fruitflow(R) protects against adverse
effects of air pollution
In December 2017 the Company announced the filing of a patent
application relating to the use of Fruitflow(R) in protecting
against the adverse effects of air pollution on the body's
cardiovascular system.
Recent laboratory work has shown that Fruitflow(R) can reduce
the platelet activation caused by airborne particulate matter, such
as that from diesel emissions, by approximately one third. The
beneficial effects of this reduction can be observed in laboratory
models representing healthy subjects as well as in models
representing subjects with an underlying cardiovascular
problem.
The patent application describes 'a composition comprising a
water soluble tomato extract (Fruitflow(R)) for use in maintaining
cardiovascular health, lessening the risk of developing a
cardiovascular health problem, or reducing the likelihood of
worsening an existing cardiovascular health problem in a subject
who is exposed, or is at risk of exposure, to particulate air
pollution', and uses of Fruitflow(R) described in the patent
application include:
-- maintaining healthy platelet function in the presence of air pollution;
-- maintaining a healthy blood circulation and blood flow in the presence of air pollution;
-- reducing the risk of an adverse cardiovascular condition,
such as atherosclerosis or thrombosis, in the presence of
particulate matter air pollution;
-- reducing the severity of cardiovascular diseases when exposed to particulate matter; and
-- reducing the risk of cardiovascular and respiratory illness in an air polluted environment.
The World Health Organization ('WHO') estimates that in 2012
around 1 in 9 deaths were attributed to exposure to air pollution,
making it the largest environmental risk factor for ill health, and
with 72% of outdoor air pollution-related premature deaths being
due to ischaemic heart disease and strokes.
In 2016, 91% of the world's population lived in places where air
quality levels exceed WHO limits (source: World Health
Organization, Ambient (outdoor) air quality and health).
The patent filing means that DSM and the Company can use this
research to assist with discussions with current and potential
customers. The Company expects that this patent application will
have a significantly beneficial effect on the current and future
commercial prospects for Fruitflow worldwide, and it extends
potential patent protection for Fruitflow(R) out to November
2037.
Intellectual property
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow(R) as part of the Alliance Agreement
with DSM, and it is pursuing a strategy to strengthen the breadth
and duration of its patent coverage to maximise the commercial
returns that can be achieved from Fruitflow(R). Trade marks were
originally registered in the larger global territories, and new
registrations are typically now sought in additional territories in
response to requests from current or prospective customers for
Fruitflow(R).
Patent coverage for Fruitflow(R) includes the following patent
families:
-- Improved Fruitflow(R) / Fruit Extracts, which was granted by
the European Patent Office in January 2017. The patent has been
granted in six other major territories to include China, and patent
applications are at a late stage of progression in a further eight
global territories, with potential patent protection out to
November 2029.
-- Antihypertensive (blood pressure lowering) effects, as
detailed above, with potential patent protection out to April
2033.
-- The use of Fruitflow(R) with nitrates in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise, as detailed above, with potential patent
protection out to December 2033.
-- The use of Fruitflow(R) in protecting against the adverse
effects of air pollution on the body's cardiovascular system, as
detailed above, which extends potential patent protection for
Fruitflow(R) out to November 2037.
Crohn's disease intellectual property
The Group continues to maintain the Crohn's disease intellectual
property registered in Provexis (IBD) Limited, a company which is
75% owned by Provexis plc and 25% owned by The University of
Liverpool. The Group continues to investigate further options for
the Crohn's disease project, seeking to maximise its value.
People
The Company announced in July 2018 that Frédéric Boned, who was
then EMEA Vice President of DSM's Human Nutrition & Health
business, a part of DSM Nutritional Products, had been appointed as
a Non-executive Director.
Frédéric brings a wealth of sales and marketing knowledge and
expertise to the Company having held a variety of senior roles in
DSM's Personal Care & Aroma Ingredients business, prior to
which he worked in sales and marketing positions for over ten years
at Givaudan.
Frédéric has recently been appointed North American Vice
President of DSM's Human Nutrition & Health business, a welcome
development for Provexis in this important market for
Fruitflow(R).
The Board would like to thank the Company's small team of sales,
marketing, e-commerce, PR and scientific consultants for their
professionalism, enthusiasm and dedication in driving the business
forward over the last six months. The Company would also like to
thank its key professional advisers for their valuable help and
support.
Capital structure and funding
The Company is seeking to maximise the commercial returns that
can be achieved from its Fruitflow(R) technology, and the Company's
cost base and its resources continue to be very tightly managed.
The Company remains keen to minimise dilution to shareholders and
it is focussed on moving into profitability as Fruitflow(R)
revenues increase, but while the Company remains in a loss making
position it will need to raise funds to support working capital on
occasions.
On 27 September 2018 the Company announced it had raised
proceeds of GBP395,000 via the placing of 98,750,000 new ordinary
shares of 0.1p each at a gross 0.40p per share with investors, with
no commissions payable. The placing shares were admitted to trading
on AIM on 5 October 2018.
The Group had received all of the GBP395,000 funds due for the
placing by 30 September 2018, hence on the 30 September 2018
consolidated statement of financial position included as part of
this interim report, GBP395,000 has been included in cash and cash
equivalents, and shown as a current liability. On 5 October 2018,
when the 98,750,000 placing shares were admitted to trading on AIM,
the GBP395,000 current liability became part of capital and
reserves attributable to owners of the parent company.
Outlook
The Company has seen a strong start to the 2018/19 financial
year, with total revenues 56% ahead of the prior year.
The Company was pleased to confirm a retail listing in August
2018 for Fruitflow(R)+ Omega-3 in more than 660 Holland &
Barrett stores, with further UK and international direct sales
channel opportunities for the product being progressed.
The Company has developed a strong, long lasting and wide
ranging patent portfolio for Fruitflow(R), a wholly natural
cardiovascular health product, backed by numerous published human
studies for Fruitflow(R).
The Company is well placed to maximise the numerous commercial
opportunities which the Company and DSM have been pursuing for
Fruitflow(R), to include the Company's planned collaboration with
BY-HEALTH in the vast Chinese market.
The Company would like to thank its customers and shareholders
for their continued support, and it remains positive about the
outlook for Fruitflow(R) and the Provexis business for the second
half of the year and beyond.
Dawson Buck
Chairman
Consolidated statement of comprehensive
income Unaudited Unaudited Audited
Six months ended 30 September 2018 six months six months year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP GBP GBP
Notes
----------------------------------------- ------ ------------- ------------- ----------
Revenue 193,753 124,259 235,804
Cost of goods (26,798) (10,374) (23,167)
----------------------------------------- ------ ------------- ------------- ----------
Gross profit 166,955 113,885 212,637
Selling and distribution costs (19,227) (11,349) (23,878)
Research and development costs (114,367) (76,285) (181,922)
Administrative costs (including share
based payment charges) (269,690) (221,687) (489,777)
R&D tax relief: payable tax credit 7,730 6,660 15,015
Underlying operating loss (153,894) (146,040) (361,618)
Share based payment charges (74,705) (42,736) (106,307)
----------------------------------------- ------ ------------- ------------- ----------
Loss from operations (228,599) (188,776) (467,925)
Finance income 124 209 497
Loss before taxation (228,475) (188,567) (467,428)
Taxation - - -
Loss and total comprehensive expense for
the period (228,475) (188,567) (467,428)
------------------------------------------------- ------------- ------------- ----------
Attributable to:
Owners of the parent (213,761) (173,926) (448,108)
Non-controlling interests (14,714) (14,641) (19,320)
Loss and total comprehensive expense for
the period (228,475) (188,567) (467,428)
------------------------------------------------- ------------- ------------- ----------
Loss per share to owners of the parent
Basic and diluted - pence 3 (0.01) (0.01) (0.02)
----------------------------------------- ------ ------------- ------------- ----------
Consolidated statement of financial
position Unaudited Unaudited Audited
30 September 2018 30 September 30 September 31 March
2018 2017 2018
Notes GBP GBP GBP
------------------------------------- ------ ------------- ------------- -------------
Assets
Current assets
Inventories 68,501 22,070 10,521
Trade and other receivables 108,166 92,256 64,621
Corporation tax asset 22,440 19,980 28,335
Cash and cash equivalents 161,192 482,942 315,166
Cash and cash equivalents - placing
funds received prior to placing
on 5 October 2018 4 395,000 - -
Total current assets 755,299 617,248 418,643
------------------------------------- ------ ------------- ------------- -------------
Total assets 755,299 617,248 418,643
------------------------------------- ------ ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (184,809) (72,698) (89,383)
Placing funds received, prior
to
placing on 5 October 2018 4 (395,000) - -
------------------------------------- ------ ------------- ------------- -------------
Total current liabilities (579,809) (72,698) (89,383)
------------------------------------- ------ ------------- ------------- -------------
Net current assets 175,490 544,550 329,260
------------------------------------- ------ ------------- ------------- -------------
Total liabilities (579,809) (72,698) (89,383)
------------------------------------- ------ ------------- ------------- -------------
Total net assets 175,490 544,550 329,260
------------------------------------- ------ ------------- ------------- -------------
Capital and reserves attributable
to
owners of the parent company
Share capital 1,885,238 1,885,238 1,885,238
Share premium reserve 17,179,546 17,179,546 17,179,546
Warrant reserve - 26,200 26,200
Merger reserve 6,599,174 6,599,174 6,599,174
Retained earnings (25,016,646) (24,693,179) (24,903,790)
------------------------------------- ------ ------------- ------------- -------------
647,312 996,979 786,368
Non-controlling interest (471,822) (452,429) (457,108)
Total equity 175,490 544,550 329,260
------------------------------------- ------ ------------- ------------- -------------
Consolidated statement of cash flows Unaudited Unaudited Audited
30 September 2018 six months six months year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
GBP GBP GBP
Cash flows from operating activities
Loss after tax (228,475) (188,567) (467,428)
Adjustments for:
Finance income (124) (209) (497)
Tax credit receivable (7,730) (6,660) (15,015)
Share-based payment charge 74,705 42,736 106,307
Changes in inventories (57,980) 10,380 21,929
Changes in trade and other receivables (43,423) (5,075) 22,478
Changes in trade and other payables 95,426 (60,616) (43,931)
Net cash flow from operations (167,601) (208,011) (376,157)
------------------------------------------- ------------- ------------- ----------
Tax credits received 13,625 13,105 13,105
Total cash flow from operating activities (153,976) (194,906) (363,052)
------------------------------------------- ------------- ------------- ----------
Cash flow from investing activities
Interest received 2 4 374
Total cash flow from investing activities 2 4 374
------------------------------------------- ------------- ------------- ----------
Cash flow from financing activities
Proceeds from issue of share capital - 665,495 665,495
Placing funds received, prior to placing
on 5 October 2018 395,000 - -
------------------------------------------- ------------- ------------- ----------
Total cash flow from financing activities 395,000 665,495 665,495
------------------------------------------- ------------- ------------- ----------
Net change in cash and cash equivalents 241,026 470,593 302,817
Opening cash and cash equivalents 315,166 12,349 12,349
Closing cash and cash equivalents 556,192 482,942 315,166
------------------------------------------- ------------- ------------- ----------
Consolidated
statement
of changes in Total
equity Share Share Warrant Merger Retained equity Non- Total
30 September attributable
2018 to owners controlling
capital premium reserve reserve earnings of interests equity
the parent
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
At 31 March
2017 1,750,818 16,648,471 26,200 6,599,174 (24,561,989) 462,674 (437,788) 24,886
Share-based
charges - - - - 42,736 42,736 - 42,736
Issue of
shares
- placing
16 May 2017 70,000 280,000 - - - 350,000 - 350,000
Issue of
shares
- placing
4 August 2017 64,420 251,075 - - - 315,495 - 315,495
Total
comprehensive
expense for
the
period - - - - (173,926) (173,926) (14,641) (188,567)
At 30
September
2017 1,885,238 17,179,546 26,200 6,599,174 (24,693,179) 996,979 (452,429) 544,550
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 63,571 63,571 - 63,571
Total
comprehensive
expense for
the
period - - - - (274,182) (274,182) (4,679) (278,861)
At 31 March
2018 1,885,238 17,179,546 26,200 6,599,174 (24,903,790) 786,368 (457,108) 329,260
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 74,705 74,705 - 74,705
Warrants -
lapsed
10 September
2018 - - (26,200) - 26,200 - - -
Total
comprehensive
expense for
the
period - - - - (213,761) (213,761) (14,714) (228,475)
At 30
September
2018 1,885,238 17,179,546 - 6,599,174 (25,016,646) 647,312 (471,822) 175,490
--------------- ---------- ----------- --------- ---------- ------------- ------------- ------------- ----------
1. General information, basis of preparation and accounting
policies
General information
Provexis plc is a public limited company incorporated and
domiciled in the United Kingdom (registration number 05102907). The
address of the registered office is 2 Blagrave Street, Reading,
Berkshire RG1 1AZ, UK.
The main activities of the Group are those of developing,
licensing and selling the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient.
Basis of preparation
This condensed financial information has been prepared using
accounting policies consistent with International Financial
Reporting Standards in the European Union (IFRS).
The same accounting policies, presentation and methods of
computation are followed in this condensed financial information as
are applied in the Group's latest annual audited financial
statements, except as set out below. While the financial figures
included in this half-yearly report have been computed in
accordance with IFRS applicable to interim periods, this
half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in
IAS 34.
Use of non-GAAP profit measure - underlying operating profit
The directors believe that the operating loss before share based
payments measure provides additional useful information for
shareholders on underlying trends and performance. This measure is
used for internal performance analysis. Underlying operating loss
is not defined by IFRS and therefore may not be directly comparable
with other companies' adjusted profit measures. It is not intended
to be a substitute for, or superior to IFRS measurements of
profit.
The interim financial information does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006 and
has been neither audited nor reviewed by the Company's auditors
Moore Stephens LLP pursuant to guidance issued by the Auditing
Practices Board.
The results for the year ended 31 March 2018 are not statutory
accounts. The statutory accounts for the last year ended 31 March
2018 were approved by the Board on 27 September 2018 and are filed
at Companies House. The report of the auditors on those accounts
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498 of the
Companies Act 2006.
The interim report for the six months ended 30 September 2018
can be downloaded from the Company's website www.provexis.com.
Further copies of the interim report and copies of the 2018 annual
report and accounts can be obtained by writing to the Company
Secretary, Provexis plc, 2 Blagrave Street, Reading, Berkshire RG1
1AZ, UK.
This announcement was approved by the Board of Provexis plc for
release on 31 December 2018.
Going concern
The Directors are of the opinion that at 31 December 2018, the
Group and Company's liquidity and capital resources are adequate to
deliver the current strategic objectives and 2018 business plan and
that the Group and Company remain a going concern.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2018, as
described in those annual financial statements.
2. Segmental reporting
The Group's operating segments are determined based on the
Group's internal reporting to the Chief Operating Decision Maker
(CODM). The CODM has been determined to be the Chairman of the
Board of Directors as he is primarily responsible for the
allocation of resources to segments and the assessment of
performance of the segments. The performance of operating segments
is assessed on operating profit before share based payment expenses
('underlying operating loss').
The CODM uses underlying operating profit/(loss) as the key
measure of the segments' results as it reflects the segments'
underlying trading performance for the financial period under
evaluation.
Underlying operating profit/(loss) is a consistent measure
within the Group which measures the performance of the segment
before share based payment charges and exceptional items.
Revenue is reported separately to the CODM and all other reports
are prepared as a single business unit.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
DSM Alliance Agreement 120,381 89,761 162,486
Fruitflow+ Omega 3 46,889 34,498 73,318
Other income 26,483 - -
193,753 124,259 235,804
------------------------ ------------- ------------- ---------
3. Earnings per share
Basic earnings per share amounts are calculated by dividing the
profit attributable to owners of the parent by the weighted average
number of ordinary shares in issue during the period.
The loss attributable to equity holders of the Company for the
purpose of calculating the fully diluted loss per share is
identical to that used for calculating the basic loss per share.
The exercise of share options would have the effect of reducing the
loss per share and is therefore anti-dilutive under the terms of
IAS 33 'Earnings per Share'.
Basic and diluted loss per share amounts are in respect of all
activities.
There were 138,000,000 share options in issue at 30 September
2018 (2017: 151,617,620) and NIL warrants (2017: 10,000,000) in
issue that are currently anti-dilutive and have therefore been
excluded from the calculations of the diluted loss per share.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
Loss for the period attributable
to owners of the parent - GBP 213,761 173,926 448,108
Weighted average number of shares 1,885,238,174 1,823,287,791 1,854,178,119
Basic and diluted loss per share
- pence 0.01 0.01 0.02
----------------------------------- -------------- -------------- --------------
On 27 September 2018 the Group announced it had raised proceeds
of GBP395,000 via the placing of 98,750,000 new ordinary shares of
0.1p each at a gross 0.40p per share with investors, with no
commissions payable. The placing shares were admitted to trading on
AIM on 5 October 2018. The new shares issued would change the
weighted average number of shares in issue as shown above for the
period ended 30 September 2018, but they would not significantly
change the resulting loss per share calculations.
4. Share capital
On 27 September 2018 the Company announced it had raised
proceeds of GBP395,000 via the placing of 98,750,000 new ordinary
shares of 0.1p each at a gross 0.40p per share with investors, with
no commissions payable. The placing shares were admitted to trading
on AIM on 5 October 2018.
The Group had received all of the GBP395,000 funds due for the
placing by 30 September 2018, hence on the 30 September 2018
consolidated statement of financial position included as part of
this interim report, GBP395,000 has been included in cash and cash
equivalents, and shown as a current liability. On 5 October 2018,
when the 98,750,000 placing shares were admitted to trading on AIM,
the GBP395,000 current liability became part of capital and
reserves attributable to owners of the parent company.
At 31 December 2018, the date of this announcement, the
Company's issued share capital comprises 1,983,988,174 ordinary
shares with voting rights. The Company does not hold any shares in
treasury.
5. Cautionary statement
This document contains certain forward-looking statements with
respect to the financial condition, results and operations of the
business. These statements involve risk and uncertainty as they
relate to events and depend on circumstances that will incur in the
future. Nothing in this interim report should be construed as a
profit forecast.
This information is provided by RNS, the 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.
END
IR WGGWUPUPRGWU
(END) Dow Jones Newswires
December 31, 2018 02:00 ET (07:00 GMT)
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