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RNS Number : 2898V
SkinBioTherapeutics PLC
30 November 2023
SkinBioTherapeutics plc
("SkinBioTherapeutics" or "the Company")
Full year results
30 November 2023 - SkinBioTherapeutics plc (AIM: SBTX, or the
"Company"), the life science business focused on skin health,
announces the fully consolidated audited results for the 12 months
to 30 June 2023.
Operational highlights
-- The Skinbiotix(TM) partnership with Croda plc product development phase continues well:
o Successful scale-up of manufacturing
o Post financial year end, contract to extend for a further 12
months to enable exploration of potential additional claims
-- AxisBiotix-Ps(TM)
o Solid sales growth in the UK; expansion of sales distribution
into Europe during the year in Spain and post period end in Italy
and France
o Monthly retention rates of subscribers remain at 80%+
o Post year end
-- Start of recruitment of participants for the consumer study
with acne food supplement; results expected in Q1 2024
-- Launch on Amazon UK
-- Oral research and inflammation programmes continue at the University of Manchester
-- Management continuing to investigate potential accretive
inorganic opportunities that provide synergies and accelerated
routes to market; update on progress expected in the near term
Financial highlights
-- Revenues up to GBP132k (2022: GBP75k) boosted by solid increase in UK revenues.
-- Operating at loss GBP2,999k (2022: loss GBP2,982k) with
increase in sales balancing the increase in headcount costs
-- Cash and cash equivalents as at 30 June was GBP1.3m (2022:
GBP1.8m), following successful Placing and Open Offer in January
2023
o Post year end, the Company raised an additional GBP3.3m
(gross) in a Placing and Retail Offer in November 2023
-- Change to Company's auditors due to auditors' corporate reorganisation
Stuart Ashman, CEO of SkinBioTherapeutics said:
"In 2023, we introduced AxisBiotix-PS(TM) into new European
territories, beginning with Spain then moving onto France and
Italy. Launching a disruptive product into any market always takes
time to establish, and given our limited resources, we are pleased
with the loyalty and the very positive testimonials we are
receiving.
"We continue to enjoy a positive relationship with the
Croda/Sederma teams and they have provided very supportive
commentary on their views of the SkinBiotix(TM) technology. We see
their wish to extend the collaboration for a further 12 months as
very positive; it may slightly delay near-term revenue generation,
but the potential enhanced commercial opportunities could be quite
considerable. All costs for the extension and the resulting
clinical grade study are met directly by Croda."
"Next year should also see the early results from other studies,
including the consumer study around an acne product, as well as
results from our oral and inflammation programmes with Manchester
University. The acne programme is especially exciting. We saw
initial positive responses to AxisBiotix-Ps in participants of the
psoriasis study who had other skin conditions, and this has
resulted in this new development programme which could have a
significant impact on a much wider population.
"Talks with potential strategic partners continue around our
other pillars. We are also pushing ahead with our inorganic
acquisition programme, looking for opportunities that are
synergistic and complement our current programmes. We have strict
criteria for these opportunities; we will not overpay and they must
be accretive from day one."
-Ends-
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
For more information please contact:
SkinBioTherapeutics plc Tel: +44 (0) 191 495 7325
Stuart J . Ashman, CEO
Manprit Randhawa, CFO
Cavendish Capital Markets Limited Tel: +44 (0) 20 7397 8900
(Nominated Adviser & Broker)
Giles Balleny, Dan Hodkinson (Corporate Finance)
Charlie Combe (Broking)
Dale Bellis, Tamar Cranford-Smith (Sales)
Instinctif Partners (financial press) Tel: +44 (0) 20 7457 2020
Melanie Toyne-Sewell / Jack Kincade SkinBioT herapeutics@instinctif.com
Notes to Editors
About SkinBioTherapeutics plc
SkinBioTherapeutics is a life science company focused on skin
health. The Company's proprietary platform technology,
SkinBiotix(R), is based upon discoveries made by Professor
Catherine O'Neill and Professor Andrew McBain.
The Company is targeting a number of skin healthcare sectors,
the most advanced of which are cosmetic skincare and food
supplements to modulate the immune system by harnessing the
gut-skin axis. In each area SkinBioTherapeutics plans to exemplify
its technology through human studies. The Company's first product,
AxisBiotix-Ps(TM), a food supplement to address the symptoms of
mild to moderate psoriasis.
The Company listed on AIM in April 2017 and is based in
Newcastle, UK. For more information, visit:
www.skinbiotherapeutics.com and www.axisbiotix.com .
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Group's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
Chairman and Chief Executive's Statement
Overview
The year for SkinBioTherapeutics has been dominated by growing
the sales of AxisBiotix-Ps(TM) in the UK and expanding sales and
distribution channels into Europe, starting with Spain. Beyond the
commercial operations, the Company has continued its research
programmes alongside the University of Manchester, and engaging
with partners and potential strategic partners across the other
business pillars, including SkinBiotix, and MediBiotix. Management
is also pushing its inorganic acquisition strategy forward with the
aim to generate further shareholder value in the near to medium
term.
Financial review
Reported sales for the full year were GBP132k (2022: GBP75k), in
line with management expectations, as UK sales continued to
increase slowly but steadily, and the introduction of new European
regions.
Cost of sales were GBP46k (2022: GBP29k) and gross profits were
GBP85k (2022: GBP45k). As shipping volumes have increased, the
Company is seeing a gradual improvement in the operating
margin.
Total administrative expenses were GBP3,085k (2022: GBP3,027k),
comprising research and development expenditure of GBP931k (2022:
GBP861k), which includes the ongoing cost of the inflammation
programme, and in oral health and wellbeing research programme.
Selling and distribution costs were GBP81k (FY22 GBP44k) due to an
increase in volumes of product being sold. Ongoing operating
expenses were GBP2,073k (2022: GBP2,122k).
The operating loss was GBP2,999k (2022: GBP2,982k).
The cash and cash equivalents balance as at 30 June 2023 was
GBP1.3m (2022: GBP1.8m) reflecting tight control on costs and was
boosted by the Placing and Open Offer which raised 2.6m of gross
proceeds to fund future operations. Post year end, the Company
raised an additional GBP3.3m (gross) in a Placing and Retail Offer
in November 2023.
Update on the Company's auditors
Jeffreys Henry LLP has indicated that it will resign as the
Company's Auditor as the firm will provide audit services to
clients from another company in the group, Gravita Audit Limited.
This is following a business reorganisation at the auditors. As
announced in the FY22 Annual Report, Gravita Audit Limited has been
appointed as the Company's auditor for the financial year ending 30
June 2023.
Jeffreys Henry LLP has confirmed to the Company that, in
accordance with Section 519 of the Companies Act 2006, there are no
circumstances in connection with its resignation which it considers
need to be brought to the attention of the Company's members or
creditors.
Current trading and outlook
Revenues of AxisBiotix-Ps(TM) have continued to increase
following the year end, with an increase in the monthly run rate
hitting GBP20k+, with revenues on course to double to cGBP250k for
the year ending 30 June 2024.
Retention rates for subscribers continue to be at least 80% with
retention rates being measured as the number of subscribers who are
remaining as a subscriber at the end of each month, compared to the
same cohort that were in existence at the start of the previous
month.
The Group also successfully completed a fundraise in November
2023, raising gross proceeds of GBP3.3m which will allow it to
continue its R&D programmes, continue marketing of
AxisBiotix-PS in the UK and Europe, and fund operating
expenditure.
Acquisition strategy
The Group is in advanced discussions to acquire two private
companies that either manufacture or sell a variety of branded
topical products for common dermatological conditions to NHS
hospitals, dispensing practices and national pharmacy chains. The
proposed targets are profitable and the Group sees a number of
synergies to improve this. However, there is no certainty of timing
or execution as the Company would need to agree additional funding
using debt and/or equity and any acquisition would be conditional
on satisfactory diligence.
In addition, the Group has a pipeline of further acquisitions
where active discussions are taking place. Any targets which the
Group is interested in purchasing will be accretive from a revenue
and earnings perspective, and thus reduce the operating cash burn,
with the goal of the Group in the next 12-18 months to becoming a
cash generating entity.
Operational review
SkinBiotix(TM) Pillar (skincare/cosmetics)
In November 2019, SkinBioTherapeutics signed a commercial and
manufacturing agreement with Croda's Consumer Care division,
Sederma, which is a specialist in bioactive ingredients for the
cosmetic industry. Croda has a global portfolio of personal care
customers which comprise many of the major international cosmetics
and FMCG brands.
During this financial year, Sederma has been focused on
developing quality formulations with their customers, which has
seen scaling-up manufacture of SkinBiotix(TM) from 600 litres to
2,000 litres which is expected to ultimately lead to the 20,000
litres vessel required to service the global market. 4 pilot
batches have been manufactured which identified significant,
unexpected technical benefits which Sederma believes may lead to a
justifiable increase in price based on clinical evidence. To this
end, the company extended its development agreement with Croda plc
to allow a clinical trial to be carried out to evidence the
additional activity. This study is fully funded by Sederma /Croda
and is expected to be completed early 2024.
Post year end, in November, Sederma extended its contract with
SkinBioTherapeutics for a further 12 months to conduct these
studies which are due to run from late 2023 into early 2024.
AxisBiotix(TM) Pillar (gut/skin axis)
The AxisBiotix pillar has challenged management time in the
year, as efforts to grow the UK market and expanding sales and
distribution channels into Europe, as well as driving the Acne
programme forward.
- AxisBiotix(TM) (Psoriasis)
Management has continued to grow the sales of the
AxisBiotix-Ps(TM) food supplement designed to alleviate the
symptoms associated with irritable skin conditions like psoriasis
in the UK and Europe.
The primary focus has been growing the UK market, whilst keeping
a strong control on costs, which has led to a reduction in
marketing expenditure with the completion of the influencer
programme. The response from customers continues to be extremely
positive with the retention rates of AxisBioTix-Ps(TM) in the UK
staying at 80% or above, which is encouraging. The retention rate
is measured as the number of subscribers who remain a subscriber at
the end of each monthly period, compared to the same cohort that
were in existence at the start of a month period. This is an
important statistic for the product, along with the increasing
number of positive testimonials from customers describing the
impact that this product has had on their lives.
This year was marked by the expansion into Europe, initially in
Spain in February 2023. Spain was management's first country target
since the market for psoriasis is similar to the UK with incidence
rates of psoriasis of between 1%-3% of the population. Post period
end, the Company opened new markets in Italy and France. The
Company also announced today that AxisBiotix-Ps(TM) will be sold on
Amazon's UK platform; the aim will be to expand this into other
countries, starting with European countries where the product
already has regulatory approval - Spain, Italy and France.
Work continues with Winclove, our formulation partner, to
investigate other delivery vehicles for SkinBiotix, for example
capsules, tablets etc which we hope to announce in 2024. These will
bring with them economic benefits to the Group.
Discussions with potential multinational partners are on-going
and are supported by our current activities. Partnering discussions
can take time and difficult to predict. Management will provide
further information as and when they are able to.
- AxisBiotix for Acne
The original consumer study with AxisBiotix-Ps(TM) involved
participants who had a mix of symptoms from psoriasis, rosacea, and
acne. The theory behind the use of a probiotic supplement was to
calm and therefore reduce the inflammatory pathways associated with
irritable skin conditions. The data showed that as well as
alleviating symptoms of psoriasis, the product had an impact on
other skin conditions; customer testimonials made reference to its
positive effect on eczema, dandruff and acne. As a result of this,
management has chosen acne as the next market to address with an
adapted form of AxisBiotix(TM).
During the year, the team has been working on a stabilised
bacterial blend from which to choose final formulations for a
consumer study in acne. The benefit of undertaking another consumer
study is the relatively short time and cost compared to a clinical
study and the classification as a food supplement rather than a
heavily regulated medical device.
Post year end, in October 2023, SkinBioTherapeutics announced
that two separate blends, formulated by Winclove Probiotics BV, had
been finalised to be studied side-by-side. A consumer volunteer
study is commencing to determine which has better efficacy. The aim
is to supply participants with the blends in powder form, just like
AxisBiotix-PS(TM).
The study involves 300 UK-based participants with acne-prone
skin, 150 randomly selected participants will receive product 1,
the other half of the group will receive product 2. Online
recruitment of participants will start via a pre-qualification
questionnaire form.
The products will be mailed to participants who are expected to
record their experience of using the product in a weekly
questionnaire over eight weeks, over which they are expected to
take the product daily. A follow-up questionnaire will be provided
one month after the participants stop taking their allocated
product. The study is expected to be completed and results reported
by the end of Q1 2024.
MediBiotix(TM) Pillar (MedTech applications e.g. woundcare)
Management is looking at using Skinbiotix(TM) technology in
medical device applications, such as woundcare since early data
showed that it encourages wound healing. In a similar way to the
AxisBiotix-Ps(TM) supplement, management is exploring how
SkinBiotix could be developed to alleviate the symptoms of eczema
via the gut-skin axis.
The advanced woundcare sector is significant but extremely
complex and heavily regulated, therefore, management believes the
optimal strategy is to seek a partner with an extensive product
portfolio and significant experience in the space to develop this
pillar further. Management continues to have advanced conversations
with global players in this sector.
CleanBiotix(TM) Pillar (anti-infection)
In early studies of SkinBiotix(TM), data also suggested that the
lysate prevented the most common skin pathogen, Staphylococcus
aureus, from sticking to and growing on skin surfaces. Increased
use of antibiotics has led to resistance to this infection (MRSA)
and incidences are growing more common in hospital settings.
Development of SkinBiotix as an anti-infection agent is an exciting
opportunity, but, again, management believes it would require
taking forward only as part of a wider outlicensed programme with a
bigger organisation.
Other Research Programmes
The Group has continued with its two research programmes with
the University of Manchester; an oral programme and an inflammation
study.
In August 2022, the first phase of the oral programme was
completed and results strongly supported the use of probiotic
strains or lysates in the prevention of gum (periodontal) disease.
By mixing bacteria and lysates together with oral cells, data
suggested that the cells were protected from the pathogens
connected with gum disease and reduced inflammation. By changing
the type and mix of bacteria to lysate created different levels and
elements of protection, therefore, further study is required to
optimise the mix. The research and development programme with the
University of Manchester continues to uncover novel mechanism by
which bacterially derived actives are protective in oral care
applications.
Three different actives, and a number of components have been
investigated with differentiated activities that offer a route to
oral care products with different protective actions on the hard
and soft tissues of the oral cavity. This current phase of the
programme ends in January 2024 and the company will work with the
University to publish relevant findings in H1 2024, and the
remainder of the details of the next phase programme through to
commercialisation. This lysate is different to that of
SkinBiotix.
The inflammation study is still underway. It is looking at how
the microbiome can influence and balance the body's response to
inflammation specifically related to harmful UVR (sunlight) light.
Several first-in-class findings have been made on the effects of
bacterially derived components and their ability to regulate the
cytokine mediated inflammatory response associated with exposure to
UVR. These results strongly support the use of bacterial actives in
protecting the skin from sun exposure and a breakout patent filing
has been made by the company on a lead active.
The company continues to work with the University of Manchester
in further validating these and other findings and in advancing the
technology toward human trials. The programme has delivered very
encouraging results and has been expanded and extended to allow for
the actives identified to be validated in propriety human skin
models. The programme will run until June 2025.
Conclusion
In 2023, the majority of the Company's focus has been on growing
sales of AxisBiotix-PS(TM) in the UK and starting to push into new
European territories, beginning with Spain. Launching a disruptive
product into any market always takes time to establish, and given
our limited resources, we are pleased with the loyalty and the very
positive testimonials we are receiving. The launch into new
European markets is very exciting and marks a new chapter.
We continue to enjoy a positive relationship with the
Croda/Sederma teams and they have provided very supportive
commentary on their views of the SkinBiotix(TM) technology. We see
their wish to extend the collaboration for a further 12 months as
positive overall; it may delay near-term revenue generation, but
the potential enhanced commercial opportunities could be
considerable.
Next year should also see the early results from other studies,
including the consumer study around an acne product, as well as
results from our oral and inflammation programmes with Manchester
University. The acne programme is especially exciting. We saw
initial positive responses to AxisBiotix-Ps in participants of the
psoriasis study who had other skin conditions, and this has
resulted in this new development programme which could have a
significant impact on a much wider population.
We were very pleased to complete and announce our recent
fundraise of GBP3.3m of gross proceeds in November 2023, which
allow the Group to continue to progress its R&D programmes,
namely the oral and inflammation programmes.
Talks with potential strategic partners continue around our
other pillars. We are also pushing ahead with our inorganic
acquisition programme, looking for opportunities that are
synergistic and complement our current programmes. We have strict
criteria for these opportunities; we will not overpay and they must
be accretive from day one.
Martin Hunt (Non-executive Chairman)
Stuart J. Ashman (Chief Executive Officer)
30 November 2023
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2023
Notes 2023 2022
Continuing Operations GBP GBP
Revenue 3 132,057 74,761
Cost of Sales (46,867) (29,424)
Gross Profit 85,190 45,337
------------ ------------
Selling and distribution costs (81,294) (43,804)
Research and development (930,636) (861,383)
Operating expenses (2,072,612) (2,122,238)
------------ ------------
Total administrative expenses (3,084,542) (3,027,425)
------------ ------------
Loss from operations 4 (2,999,352) (2,982,088)
Finance costs 5 (8,886) (10,135)
------------ ------------
Loss before taxation (3,008,238) (2,992,223)
Taxation 173,089 199,622
------------ ------------
Loss for the year 7 (2,835,149) (2,792,601)
Other comprehensive income - -
Total comprehensive loss for the
year (2,835,149) (2,792,601)
============ ============
Basis and diluted loss per share
(pence) 8 (1.72) (1.78)
Consolidated Statement of Financial Position
As at 30 June 2023
Notes 2023 2022
Assets GBP GBP
Non-current assets
Property, plant and equipment 10 78,658 -
Right-of-use assets 11 94,502 126,903
Intangible assets 12 700,331 625,504
------------- ------------
Total non-current assets 873,491 752,407
------------- ------------
Current assets
Inventories 14 33,497 122,571
Trade and other receivables 15 192,885 138,150
Corporation tax receivable 15 182,545 266,916
Cash and cash equivalents 1,311,834 1,804,923
------------- ------------
Total current assets 1,720,761 2,332,560
------------- ------------
Total assets 2,594,252 3,084,967
============= ============
Equity and liabilities
Equity
Capital and reserves
Called up share capital 19 1,731,390 1,567,802
Share premium 19 10,947,874 8,758,037
Other reserves 438,589 437,316
Accumulated deficit (11,122,943) (8,287,794)
------------- ------------
Total equity 1,994,910 2,475,361
------------- ------------
Liabilities
Non-current liabilities
Lease liabilities 17 69,601 100,647
------------- ------------
Total non-current liabilities 69,601 100,647
------------- ------------
Current liabilities
Trade and other payables 16 498,696 481,742
Lease liabilities 17 31,045 27,217
------------- ------------
Total current liabilities 529,741 508,959
------------- ------------
Total liabilities 599,342 609,606
------------- ------------
Total equity and liabilities 2,594,252 3,084,967
============= ============
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
2023 2022
GBP GBP
Cash flows from operating activities
Loss before tax for the period (3,008,238) (2,992,223)
Depreciation of property, plant and equipment 11,136 -
Right-of-use assets depreciation and interest 41,287 39,557
Amortisation of IP 656 250
Share-based payments charge 1,273 52,704
------------ ------------
(2,953,886) (2,889,712)
------------ ------------
Changes in working capital
Decrease/(increase) in inventories 89,074 (122,571)
(lncrease)/decrease in trade and other receivables (54,735) 130,796
Increase in trade and other payables 16,954 101,922
------------ ------------
Cash generated by operations 51,293 110,147
------------ ------------
Taxation received 257,458 116,534
------------ ------------
Net cash used in operating activities (2,645,135) (2,673,031)
------------ ------------
Investing activities
Purchase of property, plant and equipment (89,794) -
Purchase of IP (75,483) (96,813)
------------ ------------
Net cash used in investing activities (165,277) (96,813)
------------ ------------
Cash flows from financing activities
Net proceeds from issue of shares 2,353,425 -
Lease payments made (36,102) (35,122)
------------ ------------
Net cash generated by/(used in) financing
activities 2,317,323 (35,122)
------------ ------------
Net decrease in cash and cash equivalents (493,089) (2,804,966)
Cash and cash equivalents at the beginning
of the period 1,804,923 4,609,889
------------ ------------
Cash and cash equivalents at the end of the
period 1,311,834 1,804,923
============ ============
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023
Share Share Other Retained
Capital Premium reserves earnings Total
GBP GBP GBP GBP GBP
As at 1 July
2021 1,567,802 8,758,037 384,612 (5,495,193) 5,215,258
Loss for the period - - - (2,792,601) (2,792,601)
Share-based payments - - 52,704 - 52,704
As at 30 June
2022 1,567,802 8,758,037 437,316 (8,287,794) 2,475,361
---------- ----------- ---------- ------------- ------------
Loss for the period - - - (2,835,149) (2,835,149)
Issue of shares 163,588 2,453,793 - - 2,617,381
Cost of share
issue - (263,956) - - (263,956)
Share-based payments - - 1,273 - 1,273
As at 30 June
2023 1,731,390 10,947,874 438,589 (11,122,943) 1,994,910
========== =========== ========== ============= ============
Company Statement of Financial Position
As at 30 June 2023
Notes 2023 2022
Assets GBP GBP
Non-current assets
Property, plant and equipment 10 78,658 -
Right-of-use assets 11 94,502 126,903
Intangible assets 12 694,402 624,255
Investments 13 482,434 423,072
Other receivables 15 1,445,801 1,142,891
------------ ------------
Total non-current assets 2,795,797 2,317,121
------------ ------------
Current assets
Trade and other receivables 15 149,157 91,427
Corporation tax receivable 15 182,545 230,391
Cash and cash equivalents 1,124,961 1,561,402
------------ ------------
Total current assets 1,456,663 1,883,220
------------ ------------
Total assets 4,252,460 4,200,341
============ ============
Equity and liabilities
Equity
Capital and reserves
Called up share capital 19 1,731,390 1,567,802
Share premium 19 10,947,874 8,758,037
Other reserves 438,589 437,316
Accumulated deficit (9,441,596) (7,151,781)
------------ ------------
Total equity 3,676,257 3,611,374
------------ ------------
Liabilities
Non-current liabilities
Lease liabilities 17 69,601 100,647
------------ ------------
Total non-current liabilities 69,601 100,647
------------ ------------
Current liabilities
Trade and other payables 16 475,557 461,103
Lease liabilities 17 31,045 27,217
------------ ------------
Total current liabilities 506,602 488,320
------------ ------------
Total liabilities 576,203 588,967
------------ ------------
Total equity and liabilities 4,252,460 4,200,341
============ ============
Company Statement of Cash Flows
For the Year Ended 30 June 2023
2023 2022
GBP GBP
Cash flows from operating activities
Loss before tax for the period (2,471,551) (2,029,989)
Depreciation of property, plant and equipment 11,136 -
Right-of-use assets depreciation and interest 41,287 39,557
Impairment of financial assets 16,573 28,407
Share-based payments charge 1,273 52,704
------------ ------------
(2,401,282) (1,909,321)
------------ ------------
Changes in working capital
(lncrease)/decrease in trade and other receivables (57,731) (31,539)
Increase in trade and other payables 14,454 108,423
------------ ------------
Cash (used)/generated by operations (43,277) 76,884
------------ ------------
Taxation received 229,583 116,534
------------ ------------
Net cash used in operating activities (2,214,976) (1,715,903)
------------ ------------
Investing activities
Purchase of property, plant and equipment (89,794) -
Purchase of IP (70,147) (95,314)
Investment in subsidiaries (378,847) (856,949)
------------ ------------
Net cash used in investing activities (538,788) (952,263)
------------ ------------
Cash flows from financing activities
Net proceeds from issue of shares 2,353,425 -
Lease payments made (36,102) (35,122)
------------ ------------
Net cash generated by/(used in) financing
activities 2,317,323 (35,122)
------------ ------------
Net decrease in cash and cash equivalents (436,441) (2,703,288)
Cash and cash equivalents at the beginning
of the period 1,561,402 4,264,690
------------ ------------
Cash and cash equivalents at the end of the
period 1,124,961 1,561,402
============ ============
Company Statement of Changes in Equity
For the Year Ended 30 June 2023
Share Share Other Retained
Capital Premium reserves earnings Total
GBP GBP GBP GBP GBP
As at 1 July
2021 1,567,802 8,758,037 384,612 (5,284,889) 5,425,562
Loss for the period - - - (1,866,892) (1,866,892)
Share-based payments - - 52,704 - 52,704
As at 30 June
2022 1,567,802 8,758,037 437,316 (7,151,781) 3,611,374
Loss for the period - - - (2,289,815) (2,289,815)
Issue of shares 163,588 2,453,793 - - 2,617,381
Cost of share
issue - (263,956) - - (263,956)
Share-based payments - - 1,273 - 1,273
As at 30 June
2023 1,731,390 10,947,874 438,589 (9,441,596) 3,676,257
========== =========== ========== ============ ============
Notes to the Financial Statements
For the Year Ended 30 June 2023
1. General information
SkinBioTherapeutics plc ('the Company') is a public limited
company incorporated in England under the Companies Act and quoted
on the AIM market of the London Stock Exchange (AIM: SBTX).
The principal activity of the Group is the identification and
development of technology that harnesses the human microbiome to
improve health.
2. Significant accounting policies and basis of preparation
a) Statement of compliance
The consolidated and company financial statements of
SkinBioTherapeutics plc have been prepared in accordance with
UK-adopted International Accounting Standards ('IFRS') and the
Companies Act 2006 applicable to companies reporting under
IFRS.
b) Basis of preparation
The consolidated and company financial statements have been
prepared under the historical cost convention modified by the
revaluation of certain financial instruments. The accounting
policies have been applied consistently in all material
respects.
The consolidated and company financial statements are presented
in Sterling (GBP) as this is the predominant functional currency of
the Group and Company, and is the currency of the primary economic
environment in which it operates. Foreign transactions are
accounted in accordance with the policies set out below.
c) Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 30 June each year. Control is
achieved where the Company has the power to govern the financial
and operating policies of an investee entity so as to obtain
benefits from its activities. All intra-group transactions,
balances, income and expenses are eliminated on consolidation.
d) Going concern
These financial statements have been prepared on a going concern
basis. In considering the appropriateness of this assumption, the
Board has considered the Group's projections for the twelve months
from the date of approval of this financial information, including
cash flow forecasts. The directors are confident that based on the
Group's forecasts and the recently completed capital raise of
approximately GBP3.3 million (before costs) the Group will have
enough funds to continue in operation for at least 12 months from
the date of signing these financial statements. The Directors
believe that the Group has adequate resources to continue in
operational existence for the foreseeable future and therefore
adopt the going concern basis of accounting in preparing these
financial statements.
e) Estimates and judgements
The preparation of financial statements requires the Board to
make judgements, estimates and assumptions that may affect the
application of accounting policies and reported amounts of assets
and liabilities as at each balance sheet date and the reported
amounts of revenues and expenses during each reporting period. Any
estimates and assumptions are based on experience and any other
factors that are believed to be relevant under the circumstances
and which the Board considers to be reasonable. Actual outcomes may
differ from these estimates. Any revisions to accounting estimates
will be recognised in the period in which the estimate is revised
if the revision affects only that period. If the revision affects
both current and future periods, the change will be recognised over
those periods.
The following are the critical judgements that the Directors
have made in the process of applying the Group's accounting
policies and that have the most significant effect on the amounts
recognised in the consolidated financial statements.
Estimation of the lifetime of intangible assets
Intangible assets acquired separately from a business are
recognised at cost and are subsequently measured at cost less
accumulated amortization and accumulated impairment losses.
Intangible assets recognised are reviewed against the criteria
for capitalisation with useful life determined by reference to the
underlying product being developed. Management believes that the
assigned values and useful lives, as well as the underlying
assumptions, are reasonable, though different assumptions and
assigned lives could have a significant impact on the reported
amounts.
Useful lives are also examined on an annual basis and
adjustments, where applicable are made on a prospective basis. The
Group does not have any intangible assets with indefinite
lives.
Amortisation is calculated so as to write off the cost of an
asset, less its estimated residual value, over the useful life of
that asset as follows:
Intellectual property - 20% straight line
Capitalisation of development costs
During the year GBP75,483 (2022: GBP96,813) of development costs
were capitalised, bringing the total amount of development costs
capitalised, as intangible assets, as at 30 June 2023, to
GBP700,331 (2022: GBP625,504), net of amortisation. Management has
reviewed the balances by project, compared the carrying amount to
expected future revenues and is satisfied that no impairment exists
and that the costs capitalised will be fully recovered as the
products are launched to market. New product projects are monitored
regularly and should the technical or market feasibility of a new
product be in question, the project would be cancelled and
capitalised costs to date will be removed from the balance sheet
and charged to the statement of comprehensive income.
Inventory valuation
Inventory is carried at the lower of cost and net realisable
value, using the first in first out method. Appropriate provisions
for estimated irrecoverable amounts due to slow-moving or obsolete
inventory are recognised in the income statement where there is
objective evidence that the assets are impaired.
The provision is GBP35,386 at 30 June 2023 (2022:
GBP265,966).
Refund accruals
Accruals for sales returns are estimated on the basis of
historical returns and are recorded so as to allocate them to the
same period in which the original revenue is recorded. These
accruals are reviewed regularly and updated to reflect The Boards's
latest best estimates. The Board do not believe that the difference
between the accrual estimate and actual returns will be
material.
The accrual for net refunds totalled GBP82 at 30 June 2023
(2022: GBP267). The expected returns rate would need to differ to
actual returns by 10% to have an impact of +/- GBP1,014 on reported
revenue and on operating profit. The choice of a 10% change for the
determination of sensitivity represents an extreme variation in the
return rate.
Share-based payments
The Group measures the cost of equity-settled transactions with
employees by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value is determined
by using the Black-Scholes model taking into account the terms and
conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based
payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact
profit or loss and equity. The judgments made and the model used
are further specified in note 20.
Estimation of incremental borrowing rate in accounting for
leases under IFRS16
In recognising a lease liability and right-of-use asset under
IFRS 16 the Group has used an estimated incremental borrowing rate
of 8%. The Group does not have any borrowings, so in order to apply
IFRS 16 it was necessary to estimate the incremental borrowing rate
that would be faced by the Group. The rate of 8% was determined by
looking at a range of loans available on the market. If the
interest rate used in the calculation were higher, this would have
the effect of reducing the size of both the lease liability and
right-of-use asset, reducing the depreciation charge and increasing
the interest charge in the consolidated income statement. The
overall change to the Company Income Statement and the Company
Statement of Financial Position would be immaterial. There would be
no change to operating cash flows or lease payments as a result of
a change in the estimate of the incremental interest rate.
f) Application of new and re vised International Financial Reporting Standards (IFRSs)
The Group has adopted all of the new or amended Accounting
Standards and interpretations issued by the International
Accounting Standards Board ('IASB') or the IFRS Interpretations
Committee ('IFRIC') that are mandatory and relevant to The Group's
activities for the current reporting period.
No new standards or interpretations issued by the IASB or the
IFRIC have led to any material changes in the Group's accounting
policies or disclosures during each reporting period.
New and revised IFRSs in issue but not yet effective
There are a number of new and revised IFRSs that have been
issued but are not yet effective that the Group has decided not to
adopt early. The most significant of these are as follows:
Reference Title Summary Application
date of standard
(Periods commencing
on or after)
IFRS17 Insurance Contracts Principles for the recognition, 1 January 2023
measurement, presentation
and disclosure of insurance
contracts
1 January 2023
Amendments to address concerns
and implementation challenges
that were identified after
IFRS 17 was published
---------- -------------------- --------------------------------- ---------------------
IAS1 Presentation Amendments regarding the 1 January 2023
of Financial classification of liabilities
Statements as current or non-current
---------- -------------------- --------------------------------- ---------------------
IAS8 Accounting Amendments regarding the 1 January 2023
Policies, Changes definition of accounting
in Accounting estimates
Estimates
---------- -------------------- --------------------------------- ---------------------
IAS12 Income taxes Deferred Tax related to 1 January 2023
Assets and Liabilities arising
from a Single Transaction
---------- -------------------- --------------------------------- ---------------------
IAS37 Amendments Amendments regarding disclosure 1 January 2023
to IAS1 and of material accounting policies
IFRS Practice
Statement 2
---------- -------------------- --------------------------------- ---------------------
The adoption of these Standards and Interpretations is not
expected to have a material impact on the financial information of
the Group in the period of initial application when they come into
effect.
3. Segmental information
IFRS 8 'Operating Segments' requires operating segments to be
determined based on The Group's internal reporting to the Chief
Operating Decision Maker. The Chief Operating Decision Maker has
been determined to be The Board of Directors which receives
information on the basis of the Group's operations in key
geographical territories, based on the Group's management and
internal reporting structure. Based on this assessment the Group
consider there to be 3 operating segments. Despite there being 3
operating segments, it is not currently feasible to allocate assets
and liabilities to the operating segments. As these operating
segments grow, we expect that allocation of assets and liabilities
will be possible. Administrative expenses are not segmented for
accounting purposes as the Board do not review these by segment
currently.
Year ended 30 June 2023
UK US EU Total
GBP GBP GBP GBP
Retail sales 118,921 9,275 3,861 132,057
Cost of sales (42,205) (3,292) (1,370) (46,867)
--------- -------- -------- ---------
Gross profit 76,716 5,983 2,491 85,190
Year ended 30 June 2022
UK US EU Total
GBP GBP GBP GBP
Retail sales 57,687 17,074 - 74,761
Cost of sales (23,264) (6,160) - (29,424)
--------- -------- ---- ---------
Gross profit 34,423 10,914 - 45,337
Due to the nature of its activities, the Group is not reliant on
any individual major customers.
4. Expenses - analysis by nature
Group Group
2023 2022
GBP GBP
Other income (3,292) (1,032)
Selling and distribution costs 81,294 43,804
Depreciation of right-of-use
asset 32,401 29,422
Depreciation of plant and equipment 11,136 -
Research and development 930,636 861,383
Directors remuneration (including
share-based compensation) 778,639 624,564
Staff costs 214,606 142,342
Foreign exchange differences (51) 1,127
Auditors remuneration
* audit fees 34,450 26,250
* other services 3,000 2,260
Inventory write down 35,386 265,966
Other operating costs 966,337 1,031,339
--------------------- ---------------------
Total operating expenses 3,084,542 3,027,425
===================== =====================
5. Finance costs
Group Group
2023 2022
GBP GBP
Interest payable 8,886 10,135
----------------- ------------------
8,886 10,135
================= ==================
Interest payable represents amounts arising on leases accounted
for under IFRS 16.
6. Employees and Directors
Group and company 2023 2022
The average monthly number of employees Number Number
and senior management was:
Executive directors 2 2
Non-executive directors 3 2
Employees 7 4
-------------------- ------------------
Average total persons employed 12 8
==================== ==================
As at 30 June 2023 the Company had 11 employees (2022: 7).
Group and company 2023 2022
Staff costs in respect of these GBP GBP
employees were:
Wages and salaries 1,012,909 631,789
Social security costs 137,531 68,816
Defined contribution pensions 19,733 16,883
Share-based payments (see note
20) 1,273 52,704
----------------------- -------------------
Total remuneration 1,171,446 770,192
======================= ===================
All staff were directly employed by SkinBioTherapeutics Plc.
Some of these staff costs are included within research and
development and some in share issue costs.
All the directors above can be considered to be key management
and have the responsibility for planning, directing and
controlling, directly or indirectly, the activities of the
Company.
The remuneration of directors and key executives is determined
by the remuneration committee having regard to the performance of
individuals and market trends.
The Company operates a defined contribution pension scheme for
employees and directors. The assets of the scheme are held
separately from those of the Company in independently administered
funds. The amounts outstanding at 30 June 2023 are GBP3,326 (2022:
GBP2,633).
Group and company 2023 2022
Directors remuneration: GBP GBP
Stuart J. Ashman 382,478 368,449
Manprit Randhawa 261,480 14,951
Doug Quinn - 140,414
Martin Hunt 68,670 63,000
Dr Cathy Prescott 41,011 31,500
Danielle Bekker 25,000 6,250
------------------- -------------------
Total remuneration 778,639 624,564
=================== ===================
Which is made up of:
Remuneration 755,258 572,151
Amounts receivable under long term
incentive schemes 11,375 42,603
Company contributions to pension
schemes 12,006 9,810
------------------- -------------------
Total remuneration 778,639 624,564
=================== ===================
The number of directors to whom retirement benefits are accruing
in respect of qualifying services under defined contribution
pension schemes is 2 (2022: 2). The highest paid director received
total emoluments of GBP382,478 (2022: GBP368,449) during the
year.
7. Taxation
Income taxes recognised in profit
or loss 2023 2022
GBP GBP
Current tax
Current period - UK corporation - -
tax
R&D tax credit 182,547 173,729
R&D tax credit - prior year (8,458) 25,893
------------------- -------------------
Tax credit for the year 173,089 199,622
=================== ===================
The tax charge for each period can be reconciled to the loss per
the statement of comprehensive income as follows:
Taxable losses (3,008,238) (2,992,223)
Normal applicable rate of tax 19.00% 19.00%
Loss on ordinary activities
multiplied by normal rate of
tax (571,565) (568,522)
Effects of:
Depreciation 2,116 -
Disallowables 3,752 12,525
Capital allowances (17,061) -
R&D enhanced deductions (137,215) (128,668)
R&D tax credit (173,089) (199,622)
Losses surrendered 248,189 227,644
Unused tax losses carried forward 471,784 457,021
----------------------- -----------------------
UK tax charge/(credit) (173,089) (199,622)
======================= =======================
The Group has an unrecognised deferred tax asset of GBP1,637,470
(2022: GBP1,132,844) at the period end, which has not been
recognised in the financial statements due to uncertainty of future
profits. The Group has an estimated tax loss of GBP8,618,261 (2022:
GBP5,962,339) available to be carried forward against future
profits.
8. Loss per share
2023 2022
GBP GBP
Basic and diluted loss per
share
Total comprehensive loss for
the year (2,835,149) (2,792,601)
Weighted average number of
shares 164,713,045 156,780,236
Basic and diluted loss per
share (pence) (1.72) (1.78)
======================= =======================
As the Group and Company are reporting a loss from continuing
operations for the year then, in accordance with IAS 33, the share
options are not considered dilutive because the exercise of the
share options would have an anti-dilutive effect. The basic and
diluted earnings per share as presented on the face of the income
statement are therefore identical.
9. Company's result for the period
The Group has elected to take the exemption under section 408 of
the Companies Act 2006 not to present the Parent Company income
statement account.
The loss for the Parent Company for the period was GBP2,289,815
(2022: GBP1,866,892).
10. Property, plant and equipment
Group and Company
Plant
& Machinery
GBP
Cost
At 1 July 2021 10,200
Additions -
-------------
At 30 June 2022 10,200
Additions 89,794
At 30 June 2023 99,994
=============
Accumulated depreciation
At 1 July 2021 10,200
Charge for the -
year
-------------
At 30 June 2022 10,200
Charge for the
year 11,136
At 30 June 2023 21,336
=============
Net book value
At 1 July 2021 -
-------------
At 30 June 2022 -
-------------
At 30 June 2023 78,658
=============
11. Right-of-use assets
Group and Company
Total
GBP
Cost
At 1 July 2021 145,757
Additions 12,997
--------
At 30 June 2022 158,754
--------
At 30 June 2023 158,754
========
Accumulated amortisation
At 1 July 2021 2,429
Charge for the year 29,422
--------
At 30 June 2022 31,851
Charge for the year 32,401
At 30 June 2023 64,252
========
Net book value
At 1 July 2021 143,328
--------
At 30 June 2022 126,903
--------
At 30 June 2023 94,502
========
12. Intangible assets
Patents Patents
& trademarks & trademarks
Group Company
GBP GBP
Cost
At 1 July 2021 528,941 528,941
Additions 96,813 95,314
-------------- --------------
At 30 June 2022 625,754 624,255
Additions 75,483 70,147
At 30 June 2023 701,237 694,402
============== ==============
Accumulated amortisation
At 1 July 2021 - -
Charge for the year 250 -
-------------- --------------
At 30 June 2022 250 -
Charge for the year 656 -
At 30 June 2023 906 -
============== ==============
Net book value
At 1 July 2021 528,941 528,941
-------------- --------------
At 30 June 2022 625,504 624,255
-------------- --------------
At 30 June 2023 700,331 694,402
============== ==============
Intellectual property is to be amortised over the expected
period that the asset generates income. A small part of the IP
belonging to the active subsidiary, AxisBiotix Limited, commenced
amortisation in the year ending 30 June 2022. Other IP amortisation
is expected to commence in the year ending 30 June 2024.
13. Investments
Company: Investments in subsidiary undertakings GBP
Cost
At 1 July 2021 113,733
Additions 309,339
-------------------
At 30 June 2022 423,072
Additions 59,362
-------------------
At 30 June 2023 482,434
===================
As at 30 June 2023, the Company directly owned the following
subsidiaries:
Name of company Country of incorporation Proportion of equity
interest
SkinBiotix Limited United Kingdom 100% of ordinary
shares
AxisBiotix Limited United Kingdom 100% of ordinary
shares
MediBiotix Limited United Kingdom 100% of ordinary
shares
CleanBiotix Limited United Kingdom 100% of ordinary
shares
PharmaBiotix Limited United Kingdom 100% of ordinary
shares
14. Inventories
2023 2022
GBP GBP
Inventories 33,497 122,571
------------------ -------------------
33,497 122,571
================== ===================
The cost of inventories recognised as an expense during the year
was GBP82,252 (2022: GBP295,390).
The cost of inventories recognised as an expense includes
GBP35,386 (2022: GBP265,966) in respect of write-downs of inventory
to net realisable value.
15. Trade and other receivables
2023 2022 2023 2022
GBP GBP GBP GBP
Current
Trade debtors 816 1,800 - -
Corporation tax 182,545 266,916 182,545 230,391
Sales taxes recoverable 108,720 48,669 96,240 13,560
Other receivables 12,693 11,101 12,891 11,101
Prepayments 70,656 76,580 40,026 66,766
-------- -------- ---------- ----------
375,430 405,066 331,702 321,818
======== ======== ========== ==========
Non-current
Amounts due from group undertakings - - 1,445,801 1,142,891
-------- -------- ---------- ----------
- - 1,445,801 1,142,891
======== ======== ========== ==========
The fair values of the Company's current trade and other
receivables are considered to equate to their carrying amounts. The
maximum exposure to credit risk for trade receivables is
represented by their carrying amount. There are no financial assets
which are past due but not impaired. No current financial assets
are impaired.
The amounts owed by subsidiary undertakings include a loan to
AxisBiotix Limited for GBP1,788,549 (2022:GBP1,531,177) which was
discounted to GBP1,524,909 and then impaired by GBP16,573, in
addition to earlier years impairment of GBP62,531 to give a current
value of GBP1,445,801 (2022: GBP1,142,891) under IFRS 9, as set out
in note 2. Although the loan has no repayment terms, it is
anticipated to be repaid in 3 years from the date of these
financial statements.
16. Trade and other payables
2023 2022 2023 2022
GBP GBP GBP GBP
Current
Trade creditors 194,274 72,610 176,176 66,277
Accruals 236,837 366,784 233,839 353,534
Sales taxes payable 505 85 - -
Other taxes 62,815 31,812 61,636 31,059
Other payables 4,265 10,451 3,906 10,233
-------- -------- -------- --------
498,696 481,742 475,557 461,103
======== ======== ======== ========
Trade and other payables principally consist of amounts
outstanding for trade purchases and ongoing costs. They are
non-interest bearing and are normally settled on 30-day terms. The
directors consider that the carrying value of trade and other
payables approximates to their fair value. All trade and other
payables are denominated in Sterling. The Company has financial
risk management policies in place to ensure that all payables are
paid within the credit timeframe and no interest has been charged
by any suppliers as a result of late payment of invoices during the
period.
The fair value of trade and other payables approximates their
current book values.
17. Lease liabilities
Group and Company
2023 2022
GBP GBP
Maturity analysis
Year 1 37,770 36,102
Year 2 39,029 37,770
Year 3 35,777 39,029
Year 4 - 35,778
Year 5 - -
--------- ---------
112,576 148,679
Less future interest charges (11,930) (20,815)
--------- ---------
100,646 127,864
========= =========
Analysed as
Current 31,045 27,217
Non-current 69,601 100,647
--------- ---------
100,646 127,864
========= =========
18. Financial instruments
Maturity analysis
A summary table with maturity of financial assets and
liabilities presented below is used by management to manage
liquidity risks. The amounts disclosed in the following tables are
the contractual undiscounted cash flows. Undiscounted cash flows in
respect of balances due within 12 months generally equal their
carrying amounts in the statement of financial position, as the
impact of discounting is not material.
The maturity analysis of financial instruments at 30 June 2023
is as follows:
Group
Carrying On demand 3 to 1 to 2 to
amount and less 12 months 2 years 5 years
than 3
months
Assets
Cash and cash equivalents 1,311,834 1,311,834 - - -
Trade and other
receivables 13,509 13,509 - - -
---------- ---------- ----------- --------- ---------
1,325,343 1,325,343 - - -
========== ========== =========== ========= =========
Liabilities
Trade and other
payables 435,881 435,881 - - -
Lease liabilities 112,576 8,498 29,272 39,029 35,777
---------- ---------- ----------- --------- ---------
548,457 444,379 29,272 39,029 35,777
========== ========== =========== ========= =========
Company
Carrying On demand 3 to 1 to 2 to
amount and less 12 months 2 years 5 years
than 3
months
Assets
Cash and cash equivalents 1,124,961 1,124,961 - - -
Trade and other
receivables 12,892 12,892 - - -
---------- ---------- ----------- --------- ---------
1,137,853 1,137,853 - - -
========== ========== =========== ========= =========
Liabilities
Trade and other
payables 413,923 413,923 - - -
Lease liabilities 112,576 8,498 29,272 39,029 35,777
---------- ---------- ----------- --------- ---------
526,499 422,421 29,272 39,029 35,777
========== ========== =========== ========= =========
The maturity analysis of financial instruments at 30 June 2022
is as follows:
Group
Carrying On demand 3 to 1 to 2 to
amount and less 12 months 2 years 5 years
than 3
months
Assets
Cash and cash equivalents 1,804,923 1,804,923 - - -
Trade and other
receivables 12,901 12,901 - - -
---------- ---------- ----------- --------- ---------
1,817,824 1,817,824 - - -
========== ========== =========== ========= =========
Liabilities
Trade and other
payables 449,930 449,930 - - -
Lease liabilities 133,501 5,854 26,341 33,989 67,317
---------- ---------- ----------- --------- ---------
583,431 455,784 26,341 33,989 67,317
========== ========== =========== ========= =========
Company
Carrying On demand 3 to 1 to 2 to
amount and less 12 months 2 years 5 years
than 3
months
Assets
Cash and cash
equivalents 1,561,402 1561,402 - - -
Trade and other
receivables 1,542,278 11,101 - - 1,531,177
---------- ---------- ----------- --------- ----------
3,103,680 1,572,503 - - 1,531,177
========== ========== =========== ========= ==========
Liabilities
Trade and other
payables 430,044 430,044 - - -
Lease liabilities 133,501 5,584 26,341 33,989 67,317
---------- ---------- ----------- --------- ----------
563,545 435,898 26,341 33,989 67,317
========== ========== =========== ========= ==========
18. Share capital
Number of Share Share
shares capital premium
As at 1 July 2021 156,780,236 1,567,802 8,758,037
------------ ---------- -----------
As at 30 June 2022 156,780,236 1,567,802 8,758,037
Ordinary share issued
at 1p per share 16,358,618 163,588 2,453,793
Costs related to shares
issued - - (263,956)
------------ ---------- -----------
As at 30 June 2023 173,138,854 1,731,390 10,947,874
============ ========== ===========
On 5 January 2023 16,358,618 ordinary shares were issued by way
of a placing at a price of 16p per share to raise funding for the
Group.
Share capital is the amount subscribed for shares at nominal
value, issued and fully paid.
Share premium is the amount subscribed for share capital in
excess of nominal value.
19. Share-based payments
Share options
The Group operates share-based payment arrangements to
remunerate directors and others providing similar services in the
form of a share option scheme. The exercise price of the option is
normally equal to the market price of an ordinary share in the
Group at the date of grant. Each share option converts into one
ordinary share of the Group on exercise. No amounts are paid or
payable by the recipient on receipt of the option. The options
carry neither rights to dividends nor voting rights.
Movements in the number of share options outstanding and their
related weighted average exercise prices are as follows:
Group and company
2023 2022
Number Weighted Number Weighted
of options average of options average
exercise exercise
price price
GBP GBP
Outstanding at 1 July 17,379,343 0.12 16,729,343 0.11
Granted during the
year - - 650,000 0.38
Forfeited/cancelled
during the year (650,000) 0.38 - -
------------ ---------- ------------ ----------
Outstanding at 30 June 16,729,343 0.11 17,379,343 0.12
============ ========== ============ ==========
On 9 May 2023, 650,000 options were forfeited, which were
previously granted at an exercise price of GBP0.376 per share.
The total credit recognised for the year ended 30 June 2023 for
these share options is -GBP10,102, whereas in 2022 this was a
charge of GBP10,102.
The fair values of the share options issued in the year were
derived using the Black Scholes model. The charge recognised for
the year ended 30 June 2023 for share options is GBP11,375 (2022:
GBP52,704) amounting to a total net charge of GBP1,273 being
recognised in the profit and loss account. The following
assumptions were used in the calculations:
Deed pool 1 2 3a 3b 3c
Grant date 05/04/17 05/04/17 05/04/17 05/04/17 05/04/17
Exercise price 9p 9p 9p 9p 9p
Share price at
grant date 9p 9p 9p 9p 9p
Risk-free rate 0.24% 0.24% 0.16% 0.16% 0.16%
Volatility 60% 60% 60% 60% 60%
Expected life 3.5 years 3.5 years 2.75 years 2.75 years 2.75 years
Fair value 2.58p 1.85p 2.30p 2.30p 2.30p
Deed pool 4 5 6 7 8
Grant date 18/04/19 18/04/19 18/04/19 03/03/20 08/04/20
Exercise price 18p 18p 18p 9.5p 9p
Share price at
grant date 18p 18p 18p 9.5p 7p
Risk-free rate 0.75% 0.75% 0.75% 0.29% 0.12%
Volatility 60% 60% 60% 80% 80%
Expected life 3.5 years 3.5 years 3.5 years 0 years 2 years
Fair value 2.85p 3.99p 3.48p 9.50p 0.87p
The closing share price per share at 30 June 2023 was 12.5p (30
June 2022: 20.25p).
Expected volatility is based on a conservative estimate for an
AIM listed entity. The expected life used in the model has been
adjusted, based on management's best estimate, for the effects of
non-transferability, exercise restrictions and behavioural
considerations.
20. Related party transactions
Group and company
Key management personnel compensation 2023 2022
GBP GBP
Short-term employee benefits including
social security costs 934,467 694,844
Post-employment benefits 13,218 11,239
Share-based payments 11,375 42,603
-------- --------
959,060 748,686
======== ========
Compensation figures above include directors and key management
personnel.
Transactions with other related parties
During the period ended 30 June 2023, the Company was charged
fees of GBP55,440 (2022: GBP50,400) by Invictus Management Ltd, a
company in which Martin Hunt, a director of the Company, is also a
director. These fees relate to Martin Hunt's consultancy services
to the Company. As at 30 June 2023 GBP5,292 (2022: GBP5,040) was
outstanding.
During the period ended 30 June 2023, the Company was charged
fees of GBP28,096 (2022: GBP25,200) by Biolatris Ltd, a company in
which Dr Cathy Prescott, a director of the Company, is also a
director. These fees relate to Dr Cathy Prescott's consultancy
services to the Company. As at 30 June 2023 GBPnil (2022: GBPnil)
was outstanding.
21. Ultimate controlling party
No one shareholder has control of the Company.
22. Events after the reporting date
The Company has evaluated all events and transactions that
occurred after 30 June 2023 up to the date of signing of the
financial statements.
On 22 November 2023 the Company completed a fundraise through a
Placing and Retail Offer, raising GBP3.3m of gross proceeds.
No other material subsequent events have occurred that would
require adjustment to or disclosure in the financial
statements.
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END
FR NKKBBOBDDNDN
(END) Dow Jones Newswires
November 30, 2023 12:25 ET (17:25 GMT)
Skinbiotherapeutics (LSE:SBTX)
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