Abingdon Health
plc
("Abingdon" or "the Company")
Interim Results for the six
months ended 31 December 2023
York, U.K - 14 March 2024: Abingdon Health plc (AIM: ABDX, 'Abingdon' or
'the Company'), a leading international lateral flow contract
development and manufacturing organisation (CDMO), announces
its unaudited interim results for the six months ended 31 December
2023.
Operational Highlights (including
post-period):
· Continued
growth of contract service activities with a number of projects
moving through into technical transfer for manufacture; and the
Company's full-service offering resonating well with customers
across a range of industries.
· Strong
revenue growth across all aspects of Abingdon's fully integrated
CDMO solution, including contract development; technical transfer;
manufacturing; and regulatory and commercial support.
· The
Company's opportunity pipeline remains robust with 3 new CDMO
projects signed up post 31 December 2023 bringing the total to 29
live CDMO projects; and the Board is confident, based on the
customer base and pipeline, that Abingdon's lateral flow CDMO
proposition will continue to yield further contract service
opportunities over the course of 2024 and beyond.
· The
Company's product revenue growth will be supported in H2 2024 with
the launch of a number of retailer own label self-test products
with purchase orders in place and being delivered in H2 2024.
Financial Highlights:
· Revenue
of £2.4m for H1 2024 (H1 2023: £1.1m), representing a more than
doubling of like-for-like revenue with a growth rate of 117%
compared with H1 2023.
§ Lateral Flow CDMO revenues
accounted for £2.2m (H1 2023: £0.9m) which represented a growth
rate of 136% compared with H1 2023.
§ Lateral Flow Products
revenues accounted for the balance of £0.2m (H1 2023: £0.2m).
· Gross
profit of £1.3m for H1 2024 (H1 2023: £0.3m).
§ As a result, gross margins
have increased in the period to 53.0% (H1 2023: 25.9%).
§ This is a result of
improved utilisation of our operational team through increased
manufacturing volumes being delivered in H1 2024 compared with H1
2023.
· Against
this backdrop of revenue growth, operating costs remain stable at
£2.7m for H1 2024; compared with both H1 2023 and H2 2023.
· Reduction
in Adjusted1 EBITDA loss of 47% in H1 2024 to £(1.2)m
(H1 2023: Adjusted2 EBITDA loss of £(2.2)m).
· Reduction
in operating loss of 50% to £(1.2)m (H1 2023: £(2.4)m); with H2
2024 revenue growth and further cost savings anticipated to drive
continued improvement in profit performance and cashflow.
1 adjusted for amortization, depreciation, share based payment
expense and non-recurring redundancy cost and impairment
reversals/(charges).
2 adjusted for amortization, depreciation, share based payment
expense, non-recurring redundancy costs and professional fees as
well as adjustments relating to IFRS16.
Current Trading & Outlook
· Trading
in the first two months of H2 2024 has been robust.
· The Board
therefore expects that H2 2024 revenue will be significantly
improved compared with H1 2024. As a result, FY 2024 revenues are
expected to be materially higher than FY 2023 revenues of
£4.0m.
· The
primary objective of the Board remains to move the Company to a
breakeven and cash flow positive position which it forecasts will
be achieved in 2024 without the need for additional
funding.
Chris Yates, CEO at Abingdon Health plc,
commented:
"We are pleased with H1 2024 revenue growth of 117% and look
forward to building on this in H2 2024. We are encouraged by the
growth Abingdon's dedicated lateral flow CDMO service continues to
generate with our international customer base and we are pleased to
have onboarded a number of new customers since the end of H1 2024.
Our strategy remains on building our capabilities to support our
customers in all the areas required to bring their lateral flow
project from "idea to commercial success." Our full-service
offering is resonating well with customers that want to benefit
from the cost and time efficiencies this integrated service
provides."
"Our focus is to continue to grow our commercial pipeline,
increase revenues, pro-actively manage costs, to achieve
profitability and generate positive cashflow. All of our activities
are now geared towards these near-term objectives. I would like to
thank the Abingdon team for their hard work, expertise, dedication
and their full focus on going that extra mile to deliver for our
customers. They are a credit to the Company and their efforts are
greatly appreciated by me and the rest of the Board. I would
like to thank shareholders for their continued support and I look
forward to updating further on progress as we move through
2024."
For
further information, please contact:
Abingdon Health plc
|
www.abingdonhealth.com/investors/
|
Chris Yates, Chief Executive Officer
|
|
Chris Hand, Non-Executive Chairman
|
|
|
|
Singer Capital Markets (Sole Broker and Nominated
Adviser)
|
Tel: +44
(0)20 7496 3000
|
Peter Steel, Alex Bond, Jalini
Kalaravy (Corporate Finance)
|
|
Tom Salvesen (Corporate
Broking)
|
|
|
|
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement
via the Regulatory Information Service, this inside information is
now considered to be in the public domain.
About Abingdon Health plc
Abingdon Health is a leading
lateral flow contract research and contract development and
manufacturing organisation ("CDMO") offering its services to an
international customer base across industry sectors that include
clinical, self-testing, animal health, plant health, and
environmental testing. Abingdon Health has the internal
capabilities to take projects from initial concept through to
routine and large-scale manufacturing; from "idea to commercial
success."
The Company's CDMO division offers
product development, regulatory support, technology transfer and
manufacturing services for customers looking to develop new assays
or transfer existing laboratory-based assays to a lateral flow
format. Abingdon Health aims to support the increase in
need for rapid results across many industries and locations and
produces lateral flow tests in areas such as infectious disease,
clinical testing including companion diagnostics, animal health and
environmental testing. Faster access to results allows for rapid
decision making, targeted intervention and can support better
outcomes.
Abingdon Health's Abingdon Simply
Test™ range of
self-tests is an ecommerce platform that offers a range of
self-tests to empowers consumers to manage their own health and
wellbeing. The Abingdon Simply
Test™ ecommerce site offers consumers a range of information to
support them in making informed decisions on the tests available.
In addition, the site provides Abingdon's contract services
customers with a potential route to market for self-tests. The
Abingdon Simply Test range is also sold through international
distributors and through other channels in the UK and Ireland such
as pharmacy chains.
Founded in 2008, Abingdon
Health is headquartered in York, England.
For more information
visit: www.abingdonhealth.com
BUSINESS REVIEW
Strategy
Abingdon Health's mission is to
improve life by making rapid testing accessible to all. We seek to
achieve this in two ways. Firstly, by providing our customers with
a comprehensive lateral flow contract development and manufacturing
service ("CDMO") to bring their products to market in the most
efficient and cost-effective way. Secondly, through the
distribution of a range of lateral flow self-test products, branded
Abingdon Simply TestTM, retailer own brand or (select)
private-label products.
Abingdon Health is proud of the fact
that its customers are increasingly viewing the Company's as a one
stop solution for the development, manufacture and distribution of
lateral flow self-test products.
Lateral Flow CDMO
services
Abingdon provides is customers with
an integrated lateral flow Contract Research Organisation ("CRO")
and Contract Development and Manufacturing Organisation ("CDMO")
service (collectively "CDMO"). Abingdon's contract service
programme covers feasibility, optimisation, scale-up, technical
transfer and manufacturing. In addition, we offer a range of other
complementary services such as packaging design and kitting,
regulatory advice including validation and verification,
documentation for regulatory submissions, and commercial support.
The Company provides customers with all the services required to
take their project from idea to large-scale manufacture, regulatory
approval when required, and commercial success.
H1 2024 saw solid commercial
progress in our CDMO division. H1 2024 CDMO revenues more than
doubled to £2.2m which represented a growth rate of 136% compared
with H1 2023. One particularly encouraging aspect is that a number
of Abingdon's customers are engaging with the Company on a broad
range of contract services and we are supporting them not only in
accelerating their projects through the lateral flow development
phase into technical transfer and manufacturing but in other areas
such as packaging design, regulatory support, analytical laboratory
services and kitting. The clear benefit for the customer is that
they have one principal service provider who is proactively
co-ordinating the various work streams in a cohesive and integrated
manner to ensure the overall project is being driven in a cost
effective and time efficient way. Our CDMO pipeline remains robust
and we are pleased to have signed another 3 new CDMO project since
January 2024 (bringing the total number of live CDMO projects to
29); with these projects now being initiated.
We continue to be optimistic on the
prospects for the lateral flow market. Recent estimates suggest the
lateral flow market will reach nearly $23 billion by 2027 (Source:
MarketsandMarkets). Within this large opportunity one important
thing to note is that the product mix within the market is also
changing with large COVID product revenues being replaced by a
range of other lateral flow products across a range of sectors as
the adoption of lateral flow technology becomes more widespread.
COVID-19 certainly played a key role in reducing the barriers to
adoption for lateral flow technology and "doing a lateral flow
test" became part of the vernacular. This changing mix
creates opportunities for Abingdon to support customers bringing
new products to market and this is being reflected in the range of
new product development opportunities emerging across a range of
sectors including clinical, animal health, food, plant pathogen and
the environmental markets. The Board believes these market drivers
will offer further opportunities for the Company to grow its CDMO
business for the foreseeable future.
Lateral Flow Self-Test
Products
The Abingdon Simply Test and branded
range of self-tests has increased to 18 products. H1 2024 revenues
were £0.2m which represented a growth rate of 5% compared to H1
2023. As the product line, and OEM variants of it, become
more established, the Company anticipates more growth from this
product range during H2 2024. A number of significant
purchase orders have been received in H2 2024 which we expect to
fulfil by the end of June 2024. The Company is aiming to
selectively add additional self-tests, including those developed
through its contract service activities, over the rest of FY2024
and beyond. The first CDMO customer's product to be launched
through the Company's sales and distribution platform was the
Salignostics SalistickTM saliva pregnancy test. The
product is currently sold across a range of retail platforms and
online at www.abingdonsimplytest.com
and we expect further product distribution
expansion in 2024.
We are pleased to support a leading
UK retail chain with the launch of a small range of own-label
lateral flow self-tests. As lateral flow experts Abingdon is well
placed to support major retailers, both in the UK and mainland
Europe, in the sourcing and launch of lateral flow products.
Abingdon's ambition is to be the trusted source of lateral flow
tests for the retail industry giving both retailers and consumers
confidence in the lateral flow tests they procure and
use.
During H1 2024 Abingdon, alongside
Morrama Ltd ("Morrama"), invested in a new company, Eco-Flo
Innovations Ltd ("Eco-Flo"), that is focused on developing
sustainable product design solutions for the lateral flow market.
As part of the agreement Morrama assigned the intellectual property
and know-how of their novel Eco-Flo
material into Eco-Flo. Work
is well underway and in H2 2024 Abingdon will be testing the first
plastic-free, compostable cassettes generated by the tooling
Eco-Flo has invested in. The target is to have the first products
available to customers in the second half of 2024. These cassettes
will be manufactured in the UK and will utilise renewable plant
fibre moulding technology that reduces CO2 emissions by 80%
compared to the equivalent single-use plastic. The initial design
will offer a straight swap from traditional plastic cassettes,
breaking down any barrier for companies looking to reduce the
impact of their assays and reduce the plastic use across the full
test kit by 62%.
People
As at 31 December 2023, the
Company's headcount was 84, compared with 82 as at 1 July 2023.
During H1 2024 we increased the size of the R&D development
team to support the strong commercial traction in the Contract
Development segment of the business. This growth in the number of
R&D scientists was largely offset by reductions in headcount in
other areas of the business. Our intention is to keep our headcount
stable and continue to invest in developing the skills and
capabilities of our team to improve productivity and revenue
generation capabilities.
Financial Performance
Revenues in H1 2024 were more than
double those of H1 2023 at £2.4m (H1 2023: £1.1m) which represented
a growth rate of 117%. We expect revenues to be weighted towards
the second half of the financial year, as in the previous financial
year, and our target remains to achieve good like-for-like revenue
growth for each year. We are on track to achieve this in 2024 with
H2 2024 revenues expected to be positively impacted by the number
of technical transfer projects compared to H1 2024, both from
projects transferred into Abingdon at design freeze and from
existing projects moving through the design review process at
Abingdon and into technical transfer ready for
manufacture.
The gross profit margin for the
period increased to 53.0% (H1 2023: 25.9%) as we improved the
utilisation of our operational team through increased manufacturing
volumes being delivered in H1 2024 compared with H1
2023.
Operating costs in H1 2024 were
stable at £2.7m (H1 2023 £2.6m; H2 2023: £2.7m). The Company
was affected by the inflationary environment across H1 2024
resulting in increased costs such as energy costs but this was
offset by a continued focus on cost control throughout the
business. Cost control remains a key focus and a number of cost
cutting measures taken during H1 2024 will positively influence H2
2024.
Adjusted EBITDA loss reduced from
£(2.2)m in H1 2023 to £(1.2)m in H1 2024 as a result of increased
revenues and relatively stable operating costs.
In H1 2024 the operating loss was
£(1.2)m which was a 50% reduction in the loss compared to the first
half of 2023 (H1 2023: £(2.4)m).
Our key focus is to continue to
reduce our operating loss in H2 2024 and this will be driven by
forecast revenue growth and additional cost savings, some of which
have already been made in H1 2024 but will impact mainly in H2
2024.
The Company's cash balance at 31
December 2023 was £2.0m (30 June 2023: £3.2m).
The earnings per share figure below
includes in the denominator deferred shares. Technically this is
correct. However, it should be noted that the deferred shares are
non-voting shares, with no rights to dividends, but holders of
deferred shares are entitled to receive the nominal value of that
share (0.0025 pence sterling) once on a return of capital, a
repurchase of those shares by the Company or in connection with a
sale of those shares. As set out in note 3 below, the total nominal
value of all the deferred shares is £45k.
Current Trading and Outlook
Abingdon's comprehensive lateral
flow CDMO service proposition is resonating well with customers and
we look forward to continue to build our business and grow
shareholder value.
The Board remains confident of
achieving material revenue growth for FY24 compared to FY23, with
revenues in H2 2024 also being materially ahead of H1
2024.
Our key focus remains on continued
revenue growth, proactive cost control and progression towards
profitability and a cashflow positive position.
Consolidated Statement of Total Comprehensive
Income
For the period ended 31 December
2023
|
Notes
|
Unaudited
6 months
ended
31 December
2023
|
Unaudited
6 months
ended
31 December
2022
|
Audited
Year
ended
30 June
2023
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
Revenue
|
1
|
2,410
|
1,111
|
4,045
|
Cost of sales
|
|
(1,132)
|
(823)
|
(1,970)
|
Gross
profit
|
|
1,278
|
288
|
2,075
|
|
|
|
|
|
Administrative expenses
|
|
(2,728)
|
(2,563)
|
(5,220)
|
Other income
|
|
281
|
80
|
252
|
Adjusted
EBITDA (before adjusting items)
|
|
(1,169)
|
(2,195)
|
(2,893)
|
|
|
|
|
|
Amortisation
|
|
(15)
|
(7)
|
(29)
|
Depreciation
|
|
(270)
|
(323)
|
(644)
|
Impairment reversals/ (charges)
|
|
361
|
-
|
(86)
|
Share-based payment expenses
|
|
(10)
|
(7)
|
(28)
|
Non-recurring legal, professional and
fundraising fees
|
|
-
|
(18)
|
(33)
|
Non-recurring redundancy costs
|
|
(109)
|
(162)
|
(162)
|
Lease modification
|
|
-
|
-
|
390
|
Exceptional income/(costs)
|
|
-
|
305
|
(88)
|
|
|
|
|
|
Operating
loss
|
|
(1,212)
|
(2,407)
|
(3,573)
|
|
|
|
|
|
Finance income
|
|
26
|
32
|
89
|
Finance costs
|
|
(34)
|
(31)
|
(72)
|
Loss before
taxation
|
|
(1,220)
|
(2,406)
|
(3,556)
|
|
|
|
|
|
Taxation
|
|
15
|
(15)
|
105
|
|
|
|
|
|
Loss for the
period
|
|
(1,205)
|
(2,421)
|
(3,451)
|
|
|
|
|
|
Other comprehensive loss
|
|
-
|
-
|
-
|
|
|
|
|
|
Total
comprehensive loss for the period
|
|
(1,205)
|
(2,421)
|
(3,451)
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
(1,205)
|
(2,421)
|
(3,451)
|
|
|
|
|
|
Basic earnings per share (pence)
|
2
|
(0.40)
|
(0.80)
|
(1.14)
|
|
|
|
|
|
Diluted earnings per share
(pence)
|
2
|
(0.40)
|
(0.80)
|
(1.14)
|
Consolidated
Statement of Financial Position
For the period ended 31 December 2023
|
Share
Capital
|
|
Share
premium
|
|
Share based payment
reserve
|
|
Retained
earnings
|
|
Total equity attributable to
owners of the parent
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
At 30 June
2022
|
76
|
|
30,309
|
|
153
|
|
(23,446)
|
|
7,092
|
Loss
|
|
|
|
|
|
|
(2,421)
|
|
(2,421)
|
Consolidated
Statement of Changes in Equity (continued)
For the period ended 31 December 2023
|
Share
Capital
|
|
Share
premium
|
|
Share based payment
reserve
|
|
Retained earnings
|
|
Total equity attributable to owners of
the parent
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the
period
|
-
|
|
-
|
|
-
|
|
(2,421)
|
|
(2,421)
|
Share option expense
|
-
|
|
-
|
|
7
|
|
-
|
|
7
|
Share options exercised
|
-
|
|
-
|
|
(4)
|
|
4
|
|
-
|
Share options forfeited
|
-
|
|
-
|
|
(77)
|
|
77
|
|
-
|
At 31 December
2022
|
76
|
|
30,309
|
|
79
|
|
(26,446)
|
|
4,018
|
|
|
|
|
|
|
|
|
|
|
Loss
|
|
|
|
|
|
|
(1,030)
|
|
(1,030)
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the
period
|
-
|
|
-
|
|
-
|
|
(1,030)
|
|
(1,030)
|
Share option expense
|
-
|
|
-
|
|
21
|
|
-
|
|
21
|
Share options forfeited
|
-
|
|
-
|
|
(20)
|
|
20
|
|
-
|
At 30 June
2023
|
76
|
|
30,309
|
|
80
|
|
(27,456)
|
|
3,009
|
|
Share
capital
|
|
Share
premium
|
|
Share based payment
reserve
|
|
Retained
earnings
|
|
Total equity attributable to
owners of the parent
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
Loss
|
|
|
|
|
|
|
(1,205)
|
|
(1,205)
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the
period
|
-
|
|
-
|
|
-
|
|
(1,205)
|
|
(1,205)
|
Share option expense
|
-
|
|
-
|
|
10
|
|
-
|
|
10
|
At 31 December
2023
|
76
|
|
30,309
|
|
90
|
|
(28,661)
|
|
1,814
|
|
|
|
|
|
|
|
|
|
|
Notes to the
Interim Financial Statements
For the period ended 31 December 2023
|
Unaudited
6 months
ended
31 December
2023
|
Unaudited
6 months
ended
31 December 2022
|
Audited Year
ended
30 June
2023
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
Cash flow from
operating activities
|
|
|
|
Loss for the period
|
(1,205)
|
(2,421)
|
(3,451)
|
Adjustment for:
|
|
|
|
Other income
|
(281)
|
(80)
|
(252)
|
Exceptional income
|
-
|
(305)
|
-
|
Net finance income
|
9
|
(1)
|
(17)
|
Tax (credit)/charge
|
(15)
|
15
|
(105)
|
Amortisation and impairment of intangible
assets
|
15
|
7
|
29
|
Share based payments
|
10
|
7
|
28
|
Depreciation and impairment of property, plant
and equipment
|
270
|
323
|
730
|
Profit on disposal of property, plant and
equipment
|
-
|
(14)
|
-
|
Impairment reversal
|
(361)
|
-
|
-
|
|
|
|
|
Changes in working
capital:
|
|
|
|
(Increase)/decrease in inventories
|
(83)
|
351
|
205
|
Decrease in trade and other
receivables
|
149
|
7,020
|
6,647
|
Decrease in trade and other payables
|
327
|
(3,068)
|
(3,180)
|
Cash used in
operations
|
(1,165)
|
1,834
|
634
|
Interest paid
|
(34)
|
(31)
|
(48)
|
Income taxes received
|
-
|
162
|
325
|
Insurance claim proceeds
|
-
|
-
|
2
|
Net cash (used
in)/generated from operating
activities
|
(1,199)
|
1,965
|
913
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
Interest received
|
26
|
32
|
89
|
Purchase of intangible assets
|
(4)
|
(18)
|
(82)
|
Purchase of property, plant and
equipment
|
(18)
|
(40)
|
(75)
|
Proceeds on disposal of property, plant and
equipment
|
-
|
-
|
1
|
Net cash
generated from/ (used in) investing activities
|
4
|
(26)
|
(67)
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
Cash withheld for SAYE scheme
|
-
|
-
|
(1)
|
Proceeds from new bank loans and
borrowings
|
-
|
250
|
250
|
Repayment of loans
|
-
|
(63)
|
(115)
|
Payment of lease obligations
|
(43)
|
(73)
|
(141)
|
Net cash
(absorbed by)/ generated from investing
activities
|
(43)
|
114
|
(7)
|
|
|
|
|
(Decrease) /
increase in cash and cash equivalents
|
(1,238)
|
2,053
|
839
|
|
|
|
|
Net cash and cash equivalents at beginning of
the period
|
3,236
|
2,397
|
2,397
|
Net cash and
cash equivalents at end of period
|
1,998
|
4,450
|
3,236
|
Company
information
Abingdon Health PLC ("the Company") is a public
limited company domiciled and incorporated in England and Wales.
The Company is quoted on the London Stock Exchange's Alternative
Investment Market ("AIM"). The registered office is York Biotech
Campus, Sand Hutton, York, YO41 1LZ. The consolidated financial
information (or "financial statements") incorporate the financial
information of the Company and entities (its subsidiaries)
controlled by the Company (collectively comprising the
"Group").
The principal activity of the Group is to
provide lateral flow contract development and manufacturing ("CDMO
services") and related contract services to an international
customer base.
Significant
accounting policies
The Group has presented below key extracts of
its accounting policies. All policies are consistent with the
previous statutory financial statements for the year ended 30 June
2023 and are expected to be consistently applied for the current
year ended 30 June 2024 inclusive of these changes.
Basis of
preparation
These financial statements have been prepared
in accordance with UK adopted international accounting standards
("IFRS") insofar as these apply to interim financial
statements.
The financial information set out in these
interim consolidated financial statements for the six months ended
31 December 2023 is unaudited. The financial information presented
are not statutory accounts prepared in accordance with the
Companies Act 2006, and are prepared only to comply with AIM
requirements for interim reporting.
The Group's financial statements for the year
ended 30 June 2023 have been filed with the Registrar of Companies.
The auditor's report on those financial statements was unqualified
and did not contain a statement under Section 498 (2) of the
Companies Act 2006.
Basis of
measurement
The financial statements have been prepared on
the historical cost basis, modified to include the revaluation of
certain financial instruments at fair value.
Use of
estimates and judgements
The preparation of the financial statements in
conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income, and
expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form
the basis of making the judgements about carrying values of assets
and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in
any future periods affected.
Going
concern
As at 31 December 2023, the Group has net
current assets. The Group has a number of CDMO service contracts in
place which generate revenues and are expected to continue doing
so. The Group also has significant unused cash reserves available
which are expected to provide an operating headroom for a period of
at least 12 months.
The Group continues to focus on increasing the
number of CDMO customers and supporting those customers in bringing
their products to market, thereby securing additional revenues for
the Group.
Basis of
consolidation
The Group financial information consolidates
those of the Company and the subsidiaries that the Company has
control of. Control is established when the Company is exposed, or
has rights, to variable returns from its involvement with the
subsidiary and has the ability to affect those returns through its
power over the subsidiary.
Electronic
communications
The Company is not proposing to bulk print and
distribute hard copies of this Interim Report for the six months
ended 31 December 2023 unless specifically requested by individual
shareholders. The Board believes that by utilising electronic
communication it delivers savings to the Company in terms of
administration, printing and postage, and environmental benefits
through reduced consumption of paper and inks, as well as speeding
up the provision of information to shareholders.
News updates, Regulatory News and Financial
statements can be viewed and downloaded from the Group's website,
www.abingdonhealth.com/investors. Copies can also be requested
from: Company Secretary, Abingdon Health PLC, York Biotech Campus,
Sand Hutton, York YO41 1LZ.
Share-based
payment
The fair value of equity-settled share-based
payments to employees is determined at the date of grant and is
expensed on a straight-line basis over the vesting period based on
the Group's estimate of shares or options that will eventually
vest.
Investments in
Associates
An associate is an entity, being neither a
subsidiary nor a joint venture, in which the company holds a
long-term interest and where the company has significant influence.
The company considers that it has significant influence where it
has the power to participate in the financial and operating
decisions of the associate.
1. Revenue
The Group applies IFRS 15 'Revenue from
contracts with customers'. Under IFRS 15, the Group applies the
5-step method to identify contracts with its customers, determine
performance obligations arising under those contracts, set an
expected transaction price, allocate that price to the performance
obligations, and then recognises revenues as and when those
obligations are satisfied.
Segmental
analysis of revenue
|
Unaudited
6 months to
31 December 2023
|
Unaudited
6 months to
31 December 2022
|
Audited
12 months to 30 June
2023
|
|
£'000
|
£'000
|
£'000
|
Product sales
|
174
|
165
|
418
|
Contract manufacturing
|
1,131
|
433
|
1,059
|
Contract development
|
818
|
513
|
2,300
|
Regulatory
|
287
|
-
|
268
|
Total revenue from contracts with
customers
|
2,410
|
1,111
|
4,045
|
Revenue
analysed by geographical market
|
Unaudited
6 months to 31 December
2023
|
Unaudited
6 months to 31 December
2022
|
Audited
12 months to 30 June
2023
|
|
£'000
|
£'000
|
£'000
|
United Kingdom
|
1,317
|
333
|
1,307
|
Europe (excluding Belgium)
|
475
|
575
|
1,179
|
Belgium
|
-
|
-
|
479
|
USA & Canada
|
480
|
99
|
861
|
Rest of the World
|
138
|
104
|
219
|
|
2,410
|
1,111
|
4,045
|
2. Earnings per
share
The calculation of the basic and diluted
earnings per share is based on the following data:
|
Unaudited 31 December
2023
|
Unaudited 31 December
2022
|
Audited
30 June 2023
|
|
|
|
|
Earnings used
in calculation (£'000s)
|
(1,205)
|
(2,421)
|
(3,451)
|
Number of shares
|
304,033,634
|
304,033,096
|
304,033,363
|
Basic EPS
(p)
|
(0.40)
|
(0.80)
|
(1.14)
|
Number of dilutable shares
|
306,667,725
|
304,033,096
|
305,820,420
|
Diluted EPS
(p)
|
(0.40)
|
(0.80)
|
(1.14)
|
The directors have presented adjusted earnings
as a measure of ongoing profitability and performance, and before
deduction of share-based payment costs and listing costs. The
diluted EPS is the same as the basic EPS as there is a loss for
each of the periods concerned. The calculated adjusted earnings for
the current period of accounts is as follows:
Adjusted Earnings per Share
|
Unaudited
6 months
ended
31 December
2023
|
Unaudited
6 months
ended
31 December
2022
|
Audited
Year
ended
30 June
2023
|
|
£'000s
|
£'000s
|
£'000s
|
|
|
|
|
Loss before taxation
|
(1,220)
|
(2,406)
|
(3,556)
|
Adjusted for:
|
|
|
|
Share-based payment
|
10
|
7
|
28
|
Impairment
(reversal)/charge
|
(361)
|
-
|
86
|
Non-recurring legal fees
|
-
|
18
|
33
|
Non-recurring employee redundancy
costs
|
109
|
162
|
162
|
Depreciation and
amortisation
|
285
|
330
|
672
|
Net finance cost /
(income)
|
8
|
(1)
|
(17)
|
Lease modification
|
-
|
-
|
(390)
|
Exceptional income
|
-
|
(305)
|
88
|
|
|
|
|
Adjusted Earnings
|
(1,169)
|
(2,195)
|
(2,894)
|
|
Unaudited
6 months
ended
31 December
2023
|
Unaudited
6 months
ended
31 December
2022
|
Audited
Year
ended
30 June
2023
|
|
|
|
|
Adjusted earnings (£000s)
|
(1,169)
|
(2,195)
|
(2,894)
|
Number of shares
|
304,033,634
|
304,033,096
|
304,033,363
|
Adjusted EPS (p)
|
(0.38)
|
(0.72)
|
(0.95)
|
Number of dilutable
shares
|
306,667,725
|
304,033,096
|
305,820,420
|
Adjusted diluted EPS (p)
|
(0.38)
|
(0.72)
|
(0.95)
|
|
|
|
| |
3. Share capital
|
Unaudited 31 December
2023
|
Unaudited
31 December 2022
|
Audited
30 June
2023
|
|
|
|
|
Ordinary share
capital
|
|
|
|
Authorised
|
Number
|
Number
|
Number
|
Ordinary shares of 0.025p each
|
121,716,822
|
121,716,822
|
121,716,822
|
Deferred ordinary shares of 0.025p
each
|
182,316,812
|
182,316,812
|
182,316,812
|
|
304,033,634
|
304,033,634
|
304,033,634
|
|
|
|
|
Allotted and
fully paid
|
Number
|
Number
|
Number
|
Ordinary shares of 0.025p each
|
121,716,822
|
121,716,822
|
121,716,822
|
Deferred ordinary shares of 0.025p
each
|
182,316,812
|
182,316,812
|
182,316,812
|
|
304,033,634
|
304,033,634
|
304,033,634
|
|
|
|
|
|
£'000
|
£'000
|
£'000
|
Ordinary shares of 0.025p each
|
31
|
31
|
31
|
Deferred ordinary shares of 0.025p
each
|
45
|
45
|
45
|
|
76
|
76
|
76
|
Reconciliation
of movements during the periods:
|
Ordinary
Number
|
Deferred Ordinary
Number
|
|
|
|
At 1 July 2022
|
121,711,614
|
182,316,812
|
|
|
|
Exercise of share options
|
5,208
|
-
|
|
|
|
At 31 December 2022
|
121,716,822
|
182,316,812
|
|
|
|
|
|
|
At 31 June 2023
|
121,716,822
|
182,316,812
|
|
|
|
|
|
|
At 31 December 2023
|
121,716,822
|
182,316,812
|
4. Investments in Associates
On 7th August 2023, the
group paid consideration of £15,000 in order to acquire a 25.1%
shareholding in Eco-Flo Innovations Ltd.
5. Share options
The following movements on share options have
been recognised in the period:
|
Number of share
options
|
Weighted average exercise
price
|
|
Unaudited
31 December
2023
|
Unaudited 31 December
2022
|
Audited 30
June
2023
|
Unaudited 31 December
2023
|
Unaudited
31 December
2022
|
Audited
30
June 2023
|
|
Number
|
Number
|
Number
|
£
|
£
|
£
|
|
|
|
|
|
|
|
Outstanding at start of
period
|
4,247,210
|
219,781
|
219,781
|
0.0818
|
0.5057
|
0.3997
|
Exercised
|
-
|
(5,208)
|
(5,208)
|
-
|
0.0003
|
0.0003
|
Issued
|
2,386,238
|
4,119,286
|
4,119,286
|
0.00
|
0.0700
|
0.0700
|
Forfeited
|
(914,286)
|
(27,444)
|
(86,649)
|
0.0698
|
0.3281
|
0.4642
|
Lapsed
|
(2,084)
|
-
|
-
|
-
|
-
|
-
|
Outstanding at end of
period
|
5,717,078
|
4,306,415
|
4,247,210
|
0.0462
|
0.0818
|
0.0773
|
|
|
|
|
|
|
|
Exercisable at end of
period
|
68,752
|
-
|
70,836
|
0.00
|
-
|
0.0025
|
The options outstanding at 31 December 2023 had
an exercise price ranging from £0.00 to £0.70 and a remaining
contractual life of up to 10 years. The options exist at 31
December 2023 across the following share option schemes:
|
Number of shares
|
Exercise price per share
(£)
|
Vesting period
|
Options issued in April 2021
|
68,752
|
0.00025
|
1 year
|
SAYE scheme commenced in March 2021
|
57,089
|
0.70
|
3 years
|
Options issued in December 2022
|
3,204,999
|
0.07
|
3 years
|
Options issued in October 2023
|
2,386,238
|
0.00
|
3 years
|
|
5,717,078
|
|
|
The fair value of the scheme represents the
reduced fair value after adjusting for leavers and is being
expensed over the vesting period.