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RNS Number : 0530A
MyHealthChecked PLC
21 September 2022
MyHealthChecked PLC
("MyHealthChecked", "MHC", the "Group" or the "Company")
Half-Year Report
MyHealthChecked PLC, the consumer home-testing healthcare
company, announces its unaudited half-year report for the six
months ended 30 June 2022, which were stronger than expected and
ahead of management expectations.
Financial Highlights
-- Revenue up circa threefold to GBP9.8m (H1 2021: GBP3.3m)
* Post-period end: Record breaking July revenues of
GBP6.8m (unaudited)
-- Adjusted EBITDA improved to GBP0.37m (H1 2021: loss of GBP0.20m)
-- Improvement in Gross Profit to GBP1.5m (H1 2021: GBP1.1m)
-- Net cash generated from operating activities of GBP0.96m (H1 2021:
GBP1.29m utilised)
-- Cash balance at period end of GBP7.0m (H1 2021: GBP2.2m)
* Whilst continuing to invest across the business for
future growth
-- Strong cash generation and balances ensure next growth phases are
self-funded
Commercial & Operational Highlights
-- Distribution of FlowFlex(TM) COVID-19 lateral flow test kits into
top 2 pharmacy retailers
-- Over 6.4m COVID lateral flow tests delivered into the market, with
a further 5m delivered post-period end
-- Launch of new self-funded portfolio DNA tests
-- Successful launch of DNA at-home wellness test range on Amazon
-- Development technology builds for new blood testing launch in Q4
2022
-- Retailer engagement around new testing portfolio
Penny McCormick, Chief Executive Officer of MyHealthChecked PLC,
said : "We have exceeded our expectations for revenue performance
in the first half of the year, and have further demonstrated our
position of strength which has been earned through strong delivery
and consistent customer service, despite even greater COVID
unpredictability than experienced in 2021. Cash generation has been
a top KPI for us, to ensure that we can self-fund our next growth
phases and invest in building great technology and services for a
successful and sustainable future. I want to thank each person who
has delivered for MHC this year, doing so alongside the work being
undertaken as we work towards a new portfolio and associated
launches, which we are excited to share with the market in Q4."
Investor presentation
Penny McCormick, Chief Executive Officer and Nicholas Edwards,
Chief Financial Officer, will provide a live presentation relating
to the Half-Year Report via the Investor Meet Company platform
tomorrow (Thursday 22 September 2022) at 4:30pm BST. The
presentation is open to all existing and potential
shareholders.
Investors can sign up to Investor Meet Company for free and
register for the presentation via the link below:
https://www.investormeetcompany.com/myhealthchecked-plc/register-investor
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)20 3179 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, supported by a user-friendly digital
interface.
MyHealthChecked is the umbrella brand of a range of at-home
wellness tests that are available online, and will 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 AND CEO JOINT STATEMENT
We are delighted with the delivery of a robust financial
performance during the first half of 2022, which has been achieved
alongside delivery of our other Company milestones including
product and technical development and product launches.
Significantly, this included the successful development, build and
launch of our new portfolio of DNA wellness test panels, which has
been our first milestone launch following the success of our COVID
testing portfolio. We have sustained our progress in the COVID
space which has become increasingly competitive this year,
demonstrating that once again we have nurtured our customer base
through high levels of uncertainty and surge demand, with strong
execution having added the distribution of lateral flow tests to
our "at-home" product portfolio.
This performance has been underpinned by a strong customer base,
robust partner suppliers, and most importantly, a committed team
who have delivered another superb set of results. Our thanks go to
each person who has worked to deliver as part of this team for MHC
this year, together we are energised and eager to deliver our new
product launches in the coming months.
Financial performance - supply chain management and customer
service
We traded strongly through Spring which far exceeded
expectations with revenue delivery of GBP9.8m (six months ended 30
June 2021: GBP3.3m; year ended 31 December 2021: GBP16.4m) and an
adjusted EBITDA achievement of GBP372,000 (six months ended 30 June
2021: GBP199,000 loss; year ended 31 December 2021: GBP2,729,000).
Revenue growth in the period was driven by high volume distribution
of COVID lateral flow tests ("LFTs") which were supplied into top
pharmacy retailers via both in-store and online channels. Demand
spiked in April as direct-to-consumer purchases were driven by the
Government's cessation of free lateral flow testing for the general
public, and a change in consumer behaviour to 'self-elected'
lateral flow testing. Store distribution increased throughout the
first half of the year, building a reach that spanned impulse
travel outlets through to flagship top-tier city-centre stores.
During the period the business managed a high-volume national
supply chain, shipping over 6.4m COVID tests into the market and
ensuring that we carefully managed purchasing and logistics in an
unpredictable and challenging global situation.
Gross margins have reduced to 15.4% (six months ended 30 June
2021: 33.6%; year ended 31 December 2021: 31.3%) reflecting the
change in product mix from higher margin COVID PCR testing to LFTs
in what is a competitive, high demand environment, and whilst the
margins associated with LFTs are lower than laboratory testing, we
have used our best efforts to balance customer value with the
promise of a first-class, reliable supply chain management.
Overheads were broadly in line with prior years. In April we
took the decision to close our Manchester laboratory operation,
reducing future operational costs by approximately GBP25,000 per
month. Our lab and experienced staff team played a key role in
securing major contracts and servicing customer orders in 2021, and
our team delivered during peak demand phases. The closure has
enabled the business to focus on the commercialisation and
development of our digital platform, and future investment will be
channelled into strengthening the areas that provide the greatest
long term growth potential, namely our digital platform,
complementary services, and commercialisation.
Adjusted EBITDA is calculated as follows:
Unaudited Unaudited Audited
30 June 2022 30 June 2021 31 December 2021
GBP'000 GBP'000 GBP'000
------------------------------- -------------- -------------- ------------------
Operating profit/(loss) 12 (267) 2,046
Depreciation and amortisation 103 61 157
Impairment provision - - 414
Closure of laboratory costs * 153 - -
Share based payments 104 7 112
------------------------------- -------------- -------------- ------------------
Adjusted EBITDA 372 (199) 2,729
------------------------------- -------------- -------------- ------------------
* Includes additional depreciation of GBP66,000
As a performance milestone on the acquisition of Nell Health
Limited has not been met the Directors believe that the contingent
deferred consideration of GBP1m will no longer be payable and have
therefore released the provision for this amount. Consequently the
Group's profit before and after taxation amounted to GBP1,009,000
(six months ended 30 June 2021: GBP269,000 loss; year ended 31
December 2021: GBP2,004,000) giving a basic earnings per share of
0.13p (six months ended 30 June 2021: 0.04p loss; year ended 31
December 2021: 0.28p) and fully diluted earnings per share of 0.13p
(year ended 31 December 2021: 0.27p).
Our careful delivery and focus on expenditure has also enabled
us to retain a robust cash position with cash balances as at 30
June 2022 of GBP6,995,000 (six months ended 30 June 2021:
GBP2,214,000; year ended 31 December 2021: GBP6,387,000). This
marks the achievement of cash KPIs and our commitment to generating
income for investment in our future portfolio and rollout.
New product launches
The delivery of our testing portfolio, and subsequent soft
launch, has been a significant milestone for us in 2022 as we have
begun to build a portfolio of consumer wellness tests to support
market needs outside of the pressurised NHS. Our DNA tests have
been developed in house, using SNPs ("Single Nucleotide
Polymorphisms") that must meet specific criteria before our
Scientific Advisory Board approves them for inclusion within our
tests, and have been developed to meet an anticipated change in
consumer behaviour to self-management and preventative wellness.
Our initial portfolio has been priced competitively within the DNA
space for accessibility, and whilst it is far too early to comment
on market position, our initial launch on Amazon and ongoing
retailer discussions have indicated that the market is receptive to
at-home wellness testing, including those using DNA extraction
methods. We continue to work towards expanding our distribution
network for this new portfolio.
Technology Developments
A key development area for us in the first half of this year has
been our digital platform, which includes a simple reporting format
for our new DNA tests. We are further expanding this to accommodate
our upcoming product launches, whilst ensuring risk, customer
safety, GDPR, data, security, regulations and governance are at the
core of our digital evolution. Our platform has been used directly
by well over 100,000 customers and provides a great customer
experience that meets with the approval of our direct at-home
customers and our retail partners. Our investment and development
team continues to channel into the building of a 'growth stack'
where the emphasis is on technology that allows for growth and auto
scaling as our volume increases, focusing on a modular approach
that will ensure our platform is agile, scalable and adaptable to
the evolving digital landscape.
Post-period achievements
July 2022 was a record-breaking month with revenue of GBP6.8m
(unaudited) after the delivery of over 5.5m COVID LFTs into the
market in that month alone. Alongside this delivery we have made
significant progress on building a Phase 2 portfolio of further
wellness products ready for launch in Q4 2022, which have been
market validated using quantitative customer insights. These tests,
that predominantly use blood sampling methods, will further
strengthen our range, and enable us to provide the most popular
tests, and subsequent results on our proven, simple to use digital
reporting platform.
Market readiness and new launches
Our team has grown in terms of calibre through the period, with
the appointment of digital development expertise, product
management and marketing personnel, along with the appointment of
additional medical advisors and knowledgeable subject matter
experts in key marketing disciplines. We will execute a significant
marketing push in line with our new product launches, and look
forward to providing an update as we build momentum towards our
launches. Much of this strategy is being shaped by further
qualitative market insights through Q3 and Q4, as we invest in
listening to a customer base that has emerged since the pandemic
with new perspectives and behaviours. We will use this information
to further shape our strategy and ensure that our products,
services, and messaging resonates with our customer base and brings
end users into a relationship development funnel.
Outlook
We have delivered strong revenue and operational performance in
the first half of 2022, which, alongside new product launches and
the building of a robust strategic growth plan, we believe will
significantly support our customer base in meeting their health
needs. Through clear decision making and proactive routes to
self-selection, we can add value to the customer journey. We are
filled with optimism and energy for the remainder of the year,
where we will see our commercial, digital and product teams
continue to strengthen, and deliver the builds and rollout plans
that will underpin further growth.
Our half year and post-period performance has further
demonstrated the establishment of a strong, credible, commercially
focused operation that is committed to growth and delivery, and our
excitement for next year is further heightened by the fact that we
are still in the relatively early stages of our growth plan, which
is anchored within at-home testing. Our Management and Board firmly
believe in MyHealthChecked and are committed to building further
upon this position of strength that has been achieved, so far, in
2022.
Adam Reynolds Penny McCormick
Chairman Chief Executive Officer
21 September
2022
Consolidated statement of comprehensive income
For the 6 months ended 30 June 2022
Unaudited
Unaudited 6 months Audited
6 months ended ended Year ended
30 June 30 June 31 December
2022 2021 2021
Notes GBP'000 GBP'000 GBP'000
----------------------------- ------ ---------------- ------------ -------------
Revenue 3 9,832 3,274 16,376
Cost of sales (8,321) (2,174) (11,251)
Gross profit 1,511 1,100 5,125
Other administrative
expenses (1,395) (1,360) (2,553)
Impairment of intangible
assets - - (414)
Share-based payments (104) (7) (112)
----------------------------- ------ ---------------- ------------ -------------
Administrative expenses (1,499) (1,367) (3,079)
----------------------------- ------ ---------------- ------------ -------------
Operating profit/(loss) 12 (267) 2,046
Finance expenses (3) (2) (2)
Additional consideration
payable on the acquisition
of The Genome Store
Limited - - (40)
Contingent consideration
on the acquisition
of Nell Health Limited
no longer payable 1,000 - -
----------------------------- ------ ---------------- ------------ -------------
Profit/(loss) before
income tax 1,009 (269) 2,004
Tax - - -
Profit/(loss) for
the period 3 1,009 (269) 2,004
----------------------------- ------ ---------------- ------------ -------------
Attributable to
owners of the parent: 1,009 (269) 2,004
Earnings/(loss)
per ordinary share
- basic 4 0.13p (0.04p) 0.28p
Fully diluted earnings
per ordinary share 4 0.13p - 0.27p
Consolidated statement of financial position
As at 30 June 2022
Unaudited Unaudited Audited
30 June 30 June 31 December
2022 2021 2021
Notes GBP'000 GBP'000 GBP'000
----------------------------- ------ ---------- ---------- -------------
Non-current assets
Property, plant and
equipment 88 152 163
Right-of-use assets 88 - -
Intangible assets 2,520 590 2,289
Total non-current
assets 2,696 742 2,452
----------------------------- ------ ---------- ---------- -------------
Current assets
Inventories 711 783 497
Trade and other receivables 3,224 3,114 2,332
Cash and cash equivalents 6,995 2,214 6,387
----------------------------- ------ ---------- ---------- -------------
Total current assets 10,930 6,111 9,216
----------------------------- ------ ---------- ---------- -------------
Total assets 13,626 6,853 11,668
----------------------------- ------ ---------- ---------- -------------
Current liabilities
Trade and other payables 5,094 2,994 3,315
Lease liabilities 26 - -
Deferred taxation - 87 -
Deferred consideration
and other provisions - 226 1,240
Total current liabilities 5,120 3,307 4,555
----------------------------- ------ ---------- ---------- -------------
Non-Current liabilities
Lease liabilities 40 - -
Total non-current
liabilities 40 - -
----------------------------- ------ ---------- ---------- -------------
Total liabilities 5,160 3,307 4,555
----------------------------- ------ ---------- ---------- -------------
Net assets 8,466 3,546 7,113
----------------------------- ------ ---------- ---------- -------------
Share capital 5 780 725 756
Deferred shares 6,359 6,359 6,359
Share premium account 16,887 15,513 16,671
Capital redemption
reserve 1,815 1,815 1,815
Reverse acquisition
reserve (6,044) (6,044) (6,044)
Retained earnings (11,331) (15,745) (12,444)
Share-based payment
reserve - 923 -
Total equity 8,466 3,546 7,113
----------------------------- ------ ---------- ---------- -------------
Consolidated statement of changes in equity
For the 6 months ended 30 June 2022
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
2021 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
Profit for
the period - - - - - - 1,009 1,009
--------------- --------- ----------- ---------- ------------ ------------- ------------- ----------- --------
Total
comprehensive
profit - - - - - - 1,009 1,009
Share-based
payments - - - - - - 104 104
The Genome
Store
deferred
consideration 24 - 216 - - - - 240
Equity as
at
30 June 2022 780 6,359 16,887 - 1,815 (6,044) (11,331) 8,466
--------------- --------- ----------- ---------- ------------ ------------- ------------- ----------- --------
Consolidated statement of cash flows
For the 6 months ended 30 June 2022
Unaudited Unaudited
6 months ended 6 months ended Audited
30 June 30 June Year ended
2022 2021 31 December 2021
GBP'000 GBP'000 GBP'000
---------------- ----------------- ------------------
Cash flows from operating activities
Profit/(loss) before taxation 1,009 (269) 2,004
Adjustments for:
Deferred consideration adjustment (1,000) - 40
Decrease in provisions - - (26)
Depreciation and amortization 169 61 157
Impairment of intangible assets - - 414
Finance expenses 3 2 2
Share-based payments 104 7 112
Adjusted operating profit/(loss) before changes in
working capital 285 (199) 2,703
Changes in working capital
Increase in inventory (214) (781) (494)
Increase in trade and other receivables (892) (2,918) (2,124)
Increase in trade and other payables 1,779 2,610 2,931
Cash generated/(used) in operations 958 (1,288) 3,016
Other interest paid (3) (2) (2)
Net cash inflow/(outflow) from operating activities 955 (1,290) 3,014
---------------------------------------------------------- ---------------- ----------------- ------------------
Investing activities
Purchase of property, plant and equipment (117) (128) (147)
Purchase of intangible assets (296) (3) (102)
Acquisition of Nell Health Limited - - (50)
Net cash flows used in investing activities (413) (131) (299)
---------------------------------------------------------- ---------------- ----------------- ------------------
Financing activities
Issue of ordinary shares (net of issue expenses) - 3,174 3,211
New lease finance 100 - -
Repayment of lease liability (34) (5) (5)
---------------------------------------------------------- ---------------- ----------------- ------------------
Net cash inflows from financing activities 66 3,169 3,206
---------------------------------------------------------- ---------------- ----------------- ------------------
Net change in cash and cash equivalents 608 1,748 5,921
Cash and cash equivalents at the beginning of the period 6,387 466 466
---------------------------------------------------------- ---------------- ----------------- ------------------
Cash and cash equivalents at the end of the period 6,995 2,214 6,387
---------------------------------------------------------- ---------------- ----------------- ------------------
Notes to the unaudited interim financial information for the 6
months ended 30 June 2022
1. General information
MyHealthChecked PLC is a public limited company incorporated and
domiciled in England and Wales. The registered office of the
Company is The Maltings, East Tyndall Street, Cardiff, CF24 5EA.
The registered company number is 06573154.
The principal activity of the Group is in the development and
commercialisation of at-home health diagnostics medical tests.
2. Significant accounting policies
Basis of preparation
The interim financial information for the six months ended 30
June 2022, which was approved by the Board of Directors on 20
September 2022, does not constitute statutory accounts as defined
by section 434 of the Companies Act 2006.
These interim consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting.
They do not include all disclosures that would otherwise be
required in a complete set of financial statements.
The financial information presented is unaudited and has been
prepared using the same accounting policies as those adopted in the
financial statements for the year ended 31 December 2021 and
expected to be adopted in the financial year ending 31 December
2022.
The interim financial information includes unaudited comparative
figures for the unaudited 6 months to 30 June 2021 and comparatives
for the year ended 31 December 2021 that have been extracted from
the audited financial statements for that year.
The financial statements for the year ended 31 December 2021
were reported on by the Company's auditors and delivered to the
Registrar of Companies. The report of the auditors was unqualified
and did not contain an adverse statement under section 498 (2) or
(3) of the Companies Act 2006.
In the opinion of the Directors, the interim financial
information for the period presents fairly the financial position
and the results from operations and cash flows for the period.
Going concern
The interim financial statements have been prepared under the
going concern basis as the Directors have undertaken a review of
the future financing requirements of the ongoing operation of the
business and considers the Group is able to meet its working
capital requirements.
3. Segment information
In the opinion of the directors, the Group has one class of
business, being that of the provision of diagnostic healthcare
products. All the segment assets associated with the provision of
diagnostic healthcare products are located in the UK.
Unaudited Unaudited Audited
30 June 2022 30 June 2021 31 December 2021
GBP'000 GBP'000 GBP'000
------------------------------------------------------------------ -------------- -------------- ------------------
Revenue from the provision of diagnostic healthcare products 9,832 3,274 16,376
------------------------------------------------------------------ -------------- -------------- ------------------
Profit for the period from provision of diagnostic healthcare
products 430 131 2,815
Corporate costs (421) (400) (771)
Deferred consideration adjustment 1,000 - (40)
------------------------------------------------------------------ -------------- -------------- ------------------
Group profit/(loss) before and after tax 1,009 (269) 2,004
------------------------------------------------------------------ -------------- -------------- ------------------
Cash 6,995 2,214 6,387
Segment assets 6,579 4,543 5,221
Corporate assets 52 96 60
------------------------------------------------------------------ -------------- -------------- ------------------
Total assets 13,626 6,853 11,668
------------------------------------------------------------------ -------------- -------------- ------------------
Segment liabilities 4,973 3,070 3,057
Corporate liabilities 187 237 1,498
------------------------------------------------------------------ -------------- -------------- ------------------
Total liabilities 5,160 3,307 4,555
------------------------------------------------------------------ -------------- -------------- ------------------
4. Profit/(loss) per share
Unaudited Unaudited Audited
30 June 2022 30 June 2021 31 December 2021
Basic and diluted
Profit/(loss) for the period GBP1,009,000 GBP(269,000) GBP2,004,000
Weighted average number of shares - basic 774,420,000 665,654,000 710,852,000
Weighted average number of shares - fully diluted 797,488,000 - 744,056,000
Profit/(loss) per share 0.13p (0.04)p 0.28p
Fully diluted profit per share 0.13p - 0.27p
--------------------------------------------------- -------------- -------------- ------------------
Basic profit/(loss) per share is calculated by dividing the
profit/(loss) attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period. Due to the loss in the six month period ended 30 June 2021
the effect of the share options was considered anti-dilutive and
hence no diluted loss per share information has been provided.
5. Share capital
On 22 February 2021, 194,285,714 ordinary shares were at issued
at 1.75p per share for a total consideration of GBP3.4 million
before expenses of GBP227,000 and the convertible loan note (plus
accrued interest) was converted into 13,138,647 shares at an issue
price of 0.8p per share. On the acquisition of Nell Heath Limited
on 3 July 2021 a further 27,842,931 new ordinary shares of 0.1p
each were issued at 4.14p per share as part of the initial
consideration payable of GBP1.2m. In addition, 2,500,000 EMI
options were exercised during the year at a price of 0.8p per share
and 500,000 shares were issued to Ms McCormick at a price of 3.5p
in part settlement of her performance related pay.
On 25 March 2022, 24,000,000 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.
This interim financial statement will be released in accordance
with the AIM Rules for Companies, available shortly on the
Company's website at https://investors.myhealthchecked.com/.
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END
IR DBLFLLKLBBBZ
(END) Dow Jones Newswires
September 21, 2022 02:00 ET (06:00 GMT)
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