TIDMMHC
RNS Number : 9017N
MyHealthChecked PLC
07 June 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
MyHealthChecked PLC
("MyHealthChecked" or the "Company")
Preliminary Results
Year Ended 31 December 2021
MyHealthChecked PLC (AIM: MHC), the consumer home-testing
healthcare company, announces its preliminary results for the year
ended 31 December 2021.
2021 Highlights
Commercial
-- Significant revenue growth over the prior year, up from GBP50,000
to GBP16.4m
-- Secured agreements with the two top retail high street pharmacy
chains and successfully launched and delivered into a new and unknown
category
-- MyHealthChecked brand successfully launched and established
-- Over 30,000 new direct customers
-- Over 5,000 Trustpilot reviews to achieve a 4.3 rating at the year
end
Portfolio and accreditation
-- Fast track onboarding of The Genome Store in preparation for peak
COVID activity
-- Achieved listing on Government website/gov.uk for the COVID-19
private testing providers for general Testing and Test to Release
-- Acquisition of Nell Health in July 2021
-- UKAS stage 2 passed in January 2021 with full ISO 15189:2012 accreditation
announced in September 2021
Operational
-- Migration across to new digital platform following Nell Health
acquisition
-- Secure supply chain established successfully underpinning category
volatility
-- Management of lean overheads
Financial
-- Adjusted EBITDA of GBP2.7m compared to a GBP2.7m loss in the prior
year
-- Oversubscribed GBP3.4m (gross) share placing @ 1.75p in February
2021 which included further reinvestment by Mercia's investment
funds
-- Cash generative for the first time with year-end cash balances
of GBP6.4m
The full Group Annual Report and Financial Statements will be
available shortly at www.myhealthcheckedplc.com .
MyHealthChecked PLC www.myhealthcheckedplc.com
P enny McCormick, Chief Executive via Walbrook PR
Officer
Nicholas Edwards, Chief Financial
Officer
SPARK Advisory Partners Limited Tel: +44 (0)20 3368 3550
(NOMAD)
Neil Baldwin
Oberon Capital Ltd (Broker) Tel: +44 (0)203 179 5344
Mike Seabrook mikeseabrook@oberoninvestments.com
Walbrook PR Ltd (Media & Tel: +44 (0)20 7933 8780 or myhealthcheckedplc@walbrookpr.com
IR)
Paul McManus / Alice Woodings Mob: +44(0)7980 541 893 / +44(0)7407 804
654
About MyHealthChecked PLC ( www.myhealthcheckedplc.com )
MyHealthChecked PLC, based in Cardiff, is an AIM-quoted
pioneering UK healthcare company focused on a range of at-home
healthcare and wellness tests.
MyHealthChecked is the umbrella brand of a range of at-home DNA
and RNA tests, now in development following the acquisition of The
Genome Store in November 2020. The tests will be made available
online, and would be viable for over the counter purchase.
The MyHealthChecked portfolio has been identified as part of a
change in mindset as customers become more familiar with the
concept of accessible healthcare in the growing at home testing kit
market with a focus on accessibility at the right price, led by
UK-based experts.
CHAIRMAN'S STATEMENT
2021 was a year that delivered record revenue of GBP16.4m and an
adjusted EBITDA of GBP2.7m, with net cash being GBP6.4m at the year
end.
Our key focus for 2022 will be the introduction and launch of
our DNA wellbeing products in the first half of 2022. This
portfolio will grow as we enter Q3 and Q4 and will be channelled
initially through our Direct-to-Consumer model.
I would like to take this opportunity to thank all our employees
who worked tirelessly during 2021 to deliver an outstanding result,
not only financially but also in the quality and care of
service.
We look forward to delivering further growth and value to
shareholders in 2022 and beyond.
Adam Reynolds
Non-Executive Chairman
CHIEF EXECUTIVE'S REPORT AND REVIEW
Last year, in my first CEO review in my new role, I talked about
how we had reshaped the business to deliver against an ambitious
growth plan with a clear runway ahead to revenue achievement. I am
proud to say that during 2021 we have delivered against this aim at
every stage. MyHealthChecked has again evolved significantly over
the last year, and we are well-positioned to deliver further
shareholder value in 2022 as we continue to grow the business.
I must give due credit to our fantastic team at MyHealthChecked
whose commitment and professionalism has been outstanding during an
incredibly challenging time for everyone. The team adapted our
business model to create a new retail product line in response to
the COVID pandemic and delivered a phenomenal ramp-up of testing
volume through challenging supply chain conditions. We also
successfully integrated The Genome Store business during the year
and acquired Nell Health Limited ("Nell Health") in July 2021. The
team has delivered to an incredibly high standard, and this has
been reflected in the thousands of positive customer reviews we
have received, and the continuing relationships that we have
established with the UK's top pharmacy retailers.
We have moved into 2022 in a position of strength financially,
operationally and with a quickly established reputation for
responsive, commercial delivery. We have exciting longer-term
prospects based on a pipeline of new product introductions, whilst
we continue to provide COVID testing services to our key partners,
and I am delighted to update shareholders on our strong performance
over the last year.
Successful commercial delivery - executing on our strategy for
growth
The financial performance of the business is the strongest
indicator of the significant step-change that we have delivered
over the last year. In 2021 we recorded revenues of GBP16.4m (2020:
GBP50k) and delivered an adjusted EBITDA profit of GBP2.7m,
reversing the GBP2.7m adjusted EBITDA loss seen in 2020. The
business has been cash generative for the first time in its history
and cash balances at the year-end were GBP6.39m (2020: GBP0.47m),
which reflected both good working capital management and stronger
than expected cash conversion in the final quarter.
The main driver of commercial success was the roll-out of our
new COVID-19 PCR nasal swab test kit for at-home use which was
adopted by the UK's top two high street pharmacy retailers. The
strong Q4 performance was also supported by the launch of our
COVID-19 rapid antigen test and verification service which saw us
become a distributor of FlowFlex lateral flow assays, adapting
neatly with changing market needs and demonstrating our ability to
successfully integrate third party products alongside our own
brand.
Our team also supported a number of smaller travel and
institutional Business-to-Business ("B2B") customers, however it is
the opening up of our own Direct-to-Consumer sales channel which,
supported by our investment in digital marketing and excellent
customer service provision, grew to contribute approximately
GBP2.4m to overall revenues. As the Company has grown, we have
focused on the establishment of our reputable brand with a
customer-first approach to both retail partners and directly with
consumers. Our Care Team has worked tirelessly to ensure that our
service excellence is captured, securing over 5,000 reviews on
Trustpilot in 2021 and currently standing at over 7,000 at the time
of writing. Our marketing strategy has been focussed on effective
referral channels and pricing strategies, ensuring that we always
deliver customer value.
Careful cost control and operational excellence
Whilst transforming the operational and commercial capacity of
the business to meet market demands we have kept a tight control of
our cost base and have maximised efficiencies by working closely
with key suppliers and maintaining a flexible and lean team that
has delivered extraordinary growth over the last 12 months.
We have continued to ensure that our operational footprint
matches our clients' demands as well as providing the flexibility
to expand for future growth as required. The flexible arrangements
at our Cardiff Head office have allowed us to scale up and scale
down through the year without any detriment to the provision of
customer care and dispatch. Our Manchester laboratory operation,
combined with third-party supply from Yourgene Health PLC
("Yourgene"), allowed us to maintain a reputation for quality of
service with reliable turnaround times that consistently met the
requirements of our customers. It is a mark of the quality of the
team that we were able to achieve ISO 15189 standards within six
months of opening the laboratory, and we consistently achieved 100%
for the reliability of patient results and accuracy of reporting in
the SARS CoV-2 External Quality Assurance Programme. Our facilities
were subject to ongoing review by our retail partners, and I am
proud that the team have consistently met their exacting
requirements. As part of an internal review however, in response to
a significant downturn in COVID PCR testing and our drive to remain
cost efficient, our laboratory operations will close in the current
quarter whilst we continue to utilise Yourgene's laboratories, in
conjunction with our in-house expertise, to continue building our
scientific and digital portfolio.
Preparation for the launch of a portfolio of personalised
wellness tests in H1 2022
Whilst we are still benefitting from our pivot into the
provision of COVID-19 rapid antigen tests, a key focus of our
business as we have moved into the new financial year has been on
re-investing 2021 earnings into our new product pipeline of at-home
wellness tests and building digital healthcare-centric technology
that is scalable.
The effective integration of Nell Health, acquired in July 2021,
has enabled the migration of our Laboratory Information Management
System ('LIMS') onto the digital platform that will underpin the
future business as it expands. Nell Health provided access to
innovative technology in-house, that is secure, adaptable, and
robust for future product and service developments.
This new scalable customer facing e-commerce platform enables
connection from customer through to the lab and facilitates
Government required reporting for COVID testing and has been
further enhanced in readiness for the launch of future tests. We
continue to focus on cyber security, and work closely with our Data
Protection Officer to ensure that our systems are robust as we
launch our new app technology that will provide actionable health
and nutritional guidance, tailored to the customer. Our realignment
of the goals and strategy of the business has included the
mapping-out of a range of accessible family healthcare tests, with
the aim of helping our customers to take control of their own
healthcare, whilst providing a positive customer experience.
We remain on track to launch five new at-home wellness tests
this month, focussing on the areas of weight management, vitamin
deficiency, food intolerances, heart health and blood glucose. We
will be announcing further portfolio developments through the
course of the year to support our clear business development
strategy across Direct-to-Consumer, retail, and B2B channels and I
look forward to updating shareholders on this in due course.
We will continue to explore additional third-party technology
options that can enhance the customer journey and the value of our
products, and which can be integrated by our in-house talent. We
also maintain our efforts to identify and assess complementary
earnings-enhancing partnerships with organisations that demonstrate
potential value-add and are a complementary and strategic fit to
our core business.
Whilst COVID-19 was the number one priority for 2021, and
portfolio growth is key to our long-term growth strategy, we will
continue to reinforce our strong reputation in the COVID-19 testing
space, providing a high-quality product and service to our key
partners. We will do so whilst consistently evaluating the cost
effectiveness of our operations.
Summary and outlook
Last year I commented that we had ended 2020 and commenced 2021
as a very different organisation to that of the previous January,
and that we were poised to meet the needs of the market in 2021. I
am delighted that we absolutely met the needs of the market this
past year, and I am confident echoing those comments this year:
that we have grown to be a very different organisation to that of
January 2021, commencing 2022 in a stronger position.
Having pivoted the original Concepta business plan, our first
year of commercial delivery has demonstrated that this was the
right decision, and we have delivered a successful start in our
journey to an exciting future. Whilst we did deliberately delay the
launch of the wider portfolio of wellness products until the COVID
market stabilised, we have in the meantime demonstrated our ability
to effectively identify the right tests for the market, secure
supplier and customer relationships, and manage challenging supply
chains effectively, whilst remaining competitive on price, and
excelling in customer service and delivery.
We have in place a secure digital platform, a customer base
opening up to the new idea of home-testing, and an existing
customer base to whom we can share our new product information.
2022 will be another exciting year for the business as we launch
our initial portfolio of new tests and build upon our sophisticated
digital platform, which presents a fantastic opportunity for us to
grow and create value for our shareholders. This will be supported
by positive trading in the COVID space, as over the counter
consumer demand continues into 2022.
Penny McCormick
Chief Executive Officer
FINANCIAL REVIEW
In come statement
Following the acquisition of The Genome Store in November 2020,
the Group was able to launch the COVID-19 PCR nasal swab test kit
for at-home use in December 2020 which enabled revenues to increase
from GBP50,000 in 2020 to GBP16,376,000 with a gross profit margin
of 31.3% in the year under review. Further details are set out in
the Chief Executive's Report and Strategic Review.
Administration costs amounted to GBP3,079,000 compared to
GBP3,118,000 in the prior year after expensed research and
development expenditure of GBP175,000 (2020: GBP487,000). An
impairment provision of GBP414,000 has also been taken in 2021
against the know-how and goodwill arising on the acquisition of The
Genome Store as all testing is now sub -contracted to third parties
and the testing laboratory is being closed. In 2020 the charge was
GBP622,000.
Adjusted EBITDA is calculated as follows:
2021 2020
GBP'000 GBP'000
----------------------------------------- -------- --------
Operating profit/(loss 2,046 (3,758)
Depreciation and amortisation 157 157
Impairment provision (net of DT credit) 414 622
Share based payments 112 103
Loss on disposal of intangible assets - 180
----------------------------------------- -------- --------
Adjusted EBITDA 2,729 (2,696)
----------------------------------------- -------- --------
The Group's profit before after taxation was GBP2,004,000 (2020:
GBP3,763,000 loss) giving a basic earnings per share of 0.28p
(2020: loss 0.89p) and fully diluted earnings per share of
0.27p.
Financial position
The Group's net assets at 31 December 2021 amounted to
GBP7,113,000 (2020: GBP530,000). This comprised total assets of
GBP11,668,000 (2020: GBP1,336,000) and total liabilities of
GBP4,555,000 (2020: GBP806,000). The total assets included
property, plant and equipment of GBP163,000 (2020: GBP56,000) and
intangible assets, being development costs, know-how, goodwill and
patent costs, of GBP2,289,000 (2020: GBP616,000). The significant
additions during the year relate to the goodwill and digital
platform acquired on the acquisition of Nell Health. As noted above
an impairment provision was made against the know-how and goodwill
arising on the acquisition of The Genome Store which was acquired
last year.
Cashflow
The Group's cash balance at the year-end was GBP6,387,000 (2020:
GBP466,000). The net inflow from operating activities amounted to
GBP3,014,000 (2020: GBP2,072,000 outflow) with a further
GBP3,206,000 (2020: GBP1,960,000) net of expenses raised through
financing activities, whilst the cash outflows from investing
activities amounted to GBP299,000 (2020: GBP38,000).
Capital management
The Board's objective is to maintain a balance sheet that is
both efficient and delivers long term shareholder value. The Board
continues to monitor the balance sheet to ensure it has an adequate
capital structure.
Events after the reporting year
On 25 March 2022 24,000,000 new ordinary shares of 0.1p each
were issued to settle the deferred contingent consideration payable
on the acquisition of The Genome Store Limited of GBP240,000 after
all performance milestones were met.
Nicholas Edwards
Chief Financial Officer
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For The Year Ended 31 December 2021
2021 2020
GBP'000 GBP'000
----------------------------------- --------- --------
Revenue from contracts with
customers 16,376 50
Cost of sales (11,251) (690)
------------------------------------
Gross profit/(loss) 5,125 (640)
Other administrative expenses (2,553) (2,213)
Impairment of intangible assets (414) (622)
Share based payments (112) (103)
Loss on disposal of tangible
assets - (180)
Administrative expenses (3,079) (3,118)
------------------------------------ --------- --------
Operating profit/(loss) 2,046 (3,758)
Finance expenses (2) (5)
Additional consideration payable
on the
acquisition of The Genome Store
Limited (40) -
------------------------------------ --------- --------
Profit/(loss) before income
tax 2,004 (3,763)
Tax charge - -
------------------------------------ --------- --------
Profit/(loss) for the year 2,004 (3,763)
Other comprehensive income - -
------------------------------------ --------- --------
Total comprehensive Profit/(loss)
for the year 2,004 (3,763)
------------------------------------ --------- --------
Attributable to owners of
the parent: 2,004 (3,763)
Earnings/(loss) per ordinary
share - basic 0.28p (0.89p)
Fully diluted earnings per
ordinary share 0.27p -
All activities relate to continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As At 31 December 2021
2021 2020
GBP'000 GBP'000
------------------------------- --------- ---------
Non-current assets
Property, plant and equipment 163 56
Intangible assets 2,289 616
Total non-current assets 2,452 672
-------------------------------- --------- ---------
Current assets
Inventories 497 3
Trade and other receivables 2,332 195
Cash and cash equivalents 6,387 466
-------------------------------- --------- ---------
Total current assets 9,216 664
-------------------------------- --------- ---------
Total assets 11,668 1,336
-------------------------------- --------- ---------
Current liabilities
Trade and other payables 3,315 384
Deferred tax liability - 87
Lease liabilities - 5
Deferred consideration 1,240 200
Other provisions - 26
-------------------------------- --------- ---------
Total current liabilities 4,555 702
-------------------------------- --------- ---------
Non-current liabilities
Loans and borrowings - 104
-------------------------------- --------- ---------
Total non-current liabilities - 104
-------------------------------- --------- ---------
Total liabilities 4,555 806
-------------------------------- --------- ---------
Net assets 7,113 530
-------------------------------- --------- ---------
Share capital 756 518
Deferred shares 6,359 6,359
Share premium account 16,671 12,442
Share-based payment reserve - 916
Capital redemption reserve 1,815 1,815
Reverse acquisition reserve (6,044) (6,044)
Retained earnings (12,444) (15,476)
-------------------------------- --------- ---------
Total equity 7,113 530
-------------------------------- --------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share-based Capital Reverse
Share Deferred Share payment redemption acquisition Retained
capital shares Premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------- ----------- ---------- ------------ ------------- ------------- ----------- --------
Equity as at
1 January
2020 6,624 - 10,740 813 1,815 (6,044) (11,713) 2,235
Loss for the
year - - - - - - (3,763) (3,763)
--------------- --------- ----------- ---------- ------------ ------------- ------------- ----------- --------
Total
comprehensive
loss - - - - - - (3,763) (3,763)
Issue of
shares
net of
expenses 253 - 1,702 - - - - 1,955
Share-based
payments - - - 103 - - - 103
Sub-division
of ordinary
shares
to deferred
shares (6,359) 6,359 - - - - - -
Equity as at
31 December
2020 518 6,359 12,442 916 1,815 (6,044) (15,476) 530
Profit for the
year - - - - - - 2,004 2,004
--------------- --------- ----------- ---------- ------------ ------------- ------------- ----------- --------
Total
comprehensive
profit - - - - - - 2,004 2,004
Transfer from
share based
payment
reserve - - - (916) - - 916 -
Issue of
shares
net of
expenses 194 - 2,979 - - - - 3,173
Conversion of
loan note and
interest 13 92 - - - - 105
Exercise of
options 2 - 18 - - - - 20
Other share
issue 1 16 - - - - 17
Share-based
payments - - - - - - 112 112
Acquisition of
Nell Health
Limited 28 1,124 - - - - 1,152
Equity as at
31 December
2021 756 6,359 16,671 - 1,815 (6,044) (12,444) 7,113
--------------- --------- ----------- ---------- ------------ ------------- ------------- ----------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
For The Year Ended 31 December 2021
2021 2020
GBP'000 GBP'000
------------------------------------------ -------- --------
Cash flows from operating activities
Profit/(loss) before taxation 2,004 (3,763)
Adjustments for:
Deferred consideration 40 -
(Decrease)/increase in provisions (26) 26
Depreciation and amortization 157 157
Impairment of intangible assets 414 622
Finance expenses 2 5
Share-based payments 112 103
Loss on sale of asset - 180
------------------------------------------ -------- --------
Adjusted operating profit/(loss)
before changes in working capital 2,703 (2,670)
Changes in working capital
(Increase)/decrease in inventory (494) 381
Increase in trade and other receivables (2,124) (72)
Increase in trade and other payables 2,931 116
Cash generated/(used) in operations 3,016 (2,245)
Tax received - 178
Other interest (2) (5)
------------------------------------------ -------- --------
Net cash inflow/(outflow) from
operating activities 3,014 (2,072)
------------------------------------------ -------- --------
Investing activities
Acquisition of Nell Health Limited (50) -
Purchase of property, plant and
equipment (147) (35)
Purchase of intangible assets (102) (3)
Net cash flows used in investing
activities (299) (38)
------------------------------------------ -------- --------
Financing activities
Issue of ordinary shares (net of
issue expenses) 3,211 1,675
Convertible loan note - 101
Sale of assets - 285
Repayment of lease liability (5) (101)
Net cash flows from financing activities 3,206 1,960
------------------------------------------ -------- --------
Net change in cash and cash equivalents 5,921 (150)
Cash and cash equivalents at the
beginning of the year 466 616
------------------------------------------ -------- --------
Cash and cash equivalents at the
end of the year 6,387 466
------------------------------------------ -------- --------
NOTES TO THE FINANCIAL STATEMENTS
The notes to the Financial Statement are available in full in
the Group Annual Report and Financial Statements which will be
available shortly on the Company website:
www.myhealthcheckedplc.com
Basis of preparation
The financial statements have been prepared in accordance with
UK adopted international accounting standards (IFRS), and with
those parts of the Companies Act 2006 applicable to companies
reporting under IFRS
Earnings/(loss) per share
2021 2020
Basic and diluted
Profit/(loss) for the year and earnings used in basic & diluted EPS GBP2,004,000 (GBP3,763,000)
Weighted average number of shares - basic 710,852,000 420,757,000
Weighted average number of shares - fully diluted 744,056,000 -
Earnings/(loss) per share 0.28p (0.89p)
Fully diluted earnings per share 0.27p -
--------------------------------------------------------------------- ------------- ---------------
Basic earnings per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year. Due to
the loss in the prior year the effect of the share options was
considered anti-dilutive and hence no diluted loss per share
information has been provided.
Events after the reporting date
On 25 March 2022 24,00,000 new ordinary shares of 0.1p were
issued to settle the deferred consideration payable on the
acquisition of The Genome Store Limited of GBP240,000 after all
performance milestones were met.
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