TIDMPXS
RNS Number : 1127X
Provexis PLC
31 December 2021
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
31 December 2021
Provexis plc
UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER
2021
Provexis plc ("Provexis" or the "Company"), the business that
develops, licenses and sells the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, announces its
unaudited interim results for the six months ended 30 September
2021.
Highlights
-- Long term strategic co-operation framework agreement for
Fruitflow secured with By-Health in November 2021, with exclusive
supply and distribution rights for By-Health to commercialise
Fruitflow in China and Australia.
-- Planned launch by By-Health, a circa GBP5bn listed Chinese
dietary supplement business, of a number of Fruitflow based
products in the Chinese market is progressing well. Potential sales
volumes remain at a significant multiple of existing Fruitflow
sales.
-- By-Health continues to work on an extensive regulatory
submission to the Chinese State Administration for Market
Regulation (SAMR) for Fruitflow, seeking to establish a new
permitted health function claim for foods such as Fruitflow that
can demonstrate an anti-platelet effect, addressing the aberrant
blood clots which can lead to heart attacks and strokes.
-- By-Health has made a significant investment in eight separate
studies in China, at its sole expense, in support of the Fruitflow
based products which it plans to launch in China. The five studies
which have been completed by By-Health showed excellent results in
use for Fruitflow, and provide strong evidence for By-Health in its
regulatory submissions to the SAMR for Fruitflow.
-- The Company and its commercial partner DSM remain in
constructive negotiations, working towards a new agreement for
Fruitflow for the period after 31 December 2022.
-- Fruitflow has been recognised in a further five published
scientific journals over the past eighteen months, two of them in
the context of COVID-19; the Frontiers in Nutrition journal stated
that nutraceuticals such as Fruitflow may serve as a 'safe
antiplatelet prophylactic treatment for those at high risk of
COVID-19'.
-- Total revenue for the period GBP211k, 11% behind the prior
six month period (2020: GBP237k), primarily due to short term
lockdowns and other COVID-19 disruptions in some of the growing
markets for Fruitflow in the Asia Pacific region.
-- The Company's Fruitflow+ Omega-3 direct selling business
accounted for GBP76k of total revenue, a 34% increase in this
business relative to the prior six month period (2020: GBP57k). A
new production run of Fruitflow+ Omega-3 capsules was completed in
July 2021.
-- Loss from operations reduced to GBP145k, 29% lower than the
prior six month period (2020: GBP202k).
-- Cash GBP982k at 30 September 2021 (30 September 2020:
GBP156k). The Company raised GBP1.0m from a placing in December
2020.
Provexis Chairman Dawson Buck and CEO Ian Ford commented:
'We were delighted to announce a supply and distribution
agreement for Fruitflow with By-Health in November 2021, which
follows our extensive work with By-Health over the last five years.
The agreement will take full effect from 1 January 2023.
By-Health currently expects to be in a position to complete the
last of its eight studies in 2022, and it will file its regulatory
submission to the SAMR for Fruitflow at the appropriate time,
seeking to obtain a new permitted health function claim for foods
such as Fruitflow that can demonstrate an anti-platelet effect. If
By-Health is successful in obtaining a new permitted health
function claim, it is currently expected that this would result in
some significant orders for Fruitflow, potentially at a multiple of
current total sales values.
Fruitflow is well placed to play an important role in the
Chinese cardiovascular health market under the permitted health
function claim legislation, and we look forward to working closely
with By-Health seeking to maximise the commercial success of this
agreement for the benefit of both companies.
The Company and DSM have had a strong long-term relationship,
with the shared interest of both companies being to maximise the
commercial returns that can be achieved from Fruitflow. The total
projected annual sales value of the prospective sales pipeline for
Fruitflow continues to stand at a substantial multiple of existing
annual sales.
The Alliance Agreement with DSM dates back to June 2010, with a
contractual term which runs to 31 December 2022. By default from 1
January 2023 the agreement: (i) permits DSM to continue to sell
Fruitflow to its existing customers, on the basis that a royalty on
Fruitflow sales, fixed at favourable market conditions, will remain
payable to the Company; and (ii) permits the Company to sell
Fruitflow as an ingredient directly to third parties, outside the
existing profit sharing arrangements.
The Company and DSM have started and remain currently engaged in
constructive negotiations working towards a new agreement. The
commercial terms of the negotiations remain confidential between
the two parties, and the Company will provide shareholders with a
further update in due course.
The Company has developed a strong, long lasting and
wide-ranging patent portfolio for Fruitflow, and it owns four
outright patent families for Fruitflow which have a truly global
footprint. The Company also holds other valuable intellectual
property and trade secrets for the technology. The intellectual
property for Fruitflow is of fundamental importance to the Company
and its current and future commercial partners, to include DSM and
By-Health, and it underpins the numerous commercial opportunities
which the Company and its partners are pursuing for Fruitflow.
The Company would like to thank its customers and shareholders
for their continued support, and the Board remains positive about
the outlook for Fruitflow and the Provexis business for the second
half of the financial year and beyond.'
For further information please contact:
Provexis plc Tel: 07490 391888
Ian Ford, CEO enquiries@provexis.com
Dawson Buck, Non-executive Chairman
Allenby Capital Limited (Nominated Tel: 020 3328 5656
Adviser and Broker)
Nick Naylor / Liz Kirchner (Corporate
Finance)
Matt Butlin (Sales and Corporate Broking)
Chairman and CEO's statement
The Company has had an active first six months of the year,
seeking to enhance further the commercial prospects of its
innovative, patented Fruitflow(R) heart-health ingredient.
On 4 November 2021 the Company announced that it had entered
into a supply and distribution agreement for Fruitflow with
By-Health, which followed the Company's extensive work with
By-Health over the last five years.
By-Health is seeking to obtain a new permitted health function
claim in China for foods such as Fruitflow that can demonstrate an
anti-platelet effect, addressing the aberrant blood clots which can
lead to heart attacks and strokes. If By-Health is successful in
obtaining a new permitted health function claim, it is currently
expected that this would result in some significant orders for
Fruitflow, potentially at a multiple of current total sales
values.
In the six months ended 30 September 2021 total revenues were
GBP211k, 11% behind the prior six month period (2020: GBP237k),
reflecting:
-- A decrease in the net income received from the Company's
Alliance Agreement with DSM, which fell by 21% to GBP135k in the
period (2020: GBP172k);
-- An increase in revenue, net of sales rebates, from the
Company's Fruitflow+ Omega-3 business, including the Company's
website www.fruitflowplus.com, Amazon UK, Holland & Barrett,
and the Company's distributor for Fruitflow+ Omega-3 in China
through the CBEC channel. This business grew by 34% to GBP76k in
the period (2020: GBP57k); and
-- Amounts of GBPNil received in the period for Fruitflow+
nitrates development products, compared to amounts of GBP8k in the
prior period.
The decrease in net income received from the Company's Alliance
Agreement with DSM was primarily due to short term lockdowns and
other COVID-19 disruptions in some of the growing markets for
Fruitflow in the Asia Pacific region, leading to more erratic
demand in the short term.
An increasing number of further commercial projects have been
initiated by DSM with prospective customers, including some
prospective customers which are part of global businesses, and the
total projected annual sales value of the prospective sales
pipeline for Fruitflow continues to stand at a substantial multiple
of existing annual sales.
Loss from operations for the period was GBP145k, 29% lower than
the prior period (2020: GBP202k).
Underlying operating loss for the period (before share based
payments of GBP28k (2020: GBP107k), as set out on the face of the
Consolidated Statement of Comprehensive Income) was GBP117k, 22%
higher than the prior six month period (2020: GBP95k).
By-Health Co., Ltd.
On 4 November 2021 the Company announced that it had entered
into a supply and distribution agreement (the 'Agreement') for
Fruitflow with By-Health, a listed Chinese dietary supplement
business with a market capitalisation of approximately GBP5
billion.
The Agreement, which followed the Company's extensive work with
By-Health over the last five years, will take full effect from 1
January 2023 and it gives By-Health exclusive supply and
distribution rights to commercialise Fruitflow in Mainland China,
Hong Kong, Macau, Taiwan and Australia (the 'Territories').
Under the Agreement:
-- Provexis will be responsible for the manufacture, supply and
sale of its Fruitflow heart-health functional food ingredient to
By-Health, and it will contribute scientific expertise necessary
for successful commercialisation.
-- By-Health will be responsible for the manufacture, marketing,
and sale of Fruitflow based functional food and dietary supplement
finished products in the Territories, through By-Health's extensive
sales network. Dietary supplement products such as Fruitflow are
required to be authorised by the relevant Government authorities in
each of the Territories in respect of health claims.
-- By-Health will also have exclusive rights to act as the
distributor of Fruitflow as an ingredient in the Territories,
selling Fruitflow as an ingredient to other businesses in the
Territories which wish to use Fruitflow to manufacture and sell
their own Fruitflow based finished products in the Territories.
-- Provexis and By-Health will seek to collaborate on research
and development projects which may result in the development and
approval of Fruitflow as a drug, for potential sale and
distribution in the Territories.
The Agreement, which will take full effect from 1 January 2023,
commenced on 4 November 2021 and it has a term of ten years,
subject to extension and termination clauses.
When the Agreement was signed, Felix Zhang MSc PhD, who is now
Executive Director, By-Health Research; and Global Director
R&D, commented that:
'The strong science behind Fruitflow fits very well with our
'science-based nutrition' strategy, which focusses on strong
science-backed evidence to support health claims which are of
benefit to consumers. We look forward to progressing our work with
Fruitflow, in partnership with Provexis, towards future significant
commercialisation in China and Australia.'
By-Health has since launched a Personalised Customised Vitamin
Concept Product, as further detailed at:
www.by-health.com/news-4429.
Regulatory progress in China - new permitted health function
claim
The Company has previously announced it has been working with
By-Health to support the planned launch of a number of Fruitflow
based products in the Chinese market, with potential volumes at a
significant multiple of current Fruitflow sales.
The planned launch of Fruitflow based products in the Chinese
market has been progressing well. Clinical studies conducted in
China are typically required to obtain the necessary regulatory
clearances in China, and a significant investment in eight separate
Fruitflow studies has been undertaken at By-Health's expense.
Five studies have been successfully completed in China, and two
clinical studies and one animal study are currently ongoing.
The five completed studies showed excellent results in use for
Fruitflow, and they provide strong evidence for its efficacy on
platelet functions. The Chinese regulatory system for functional
health food ingredients such as Fruitflow is governed by the State
Administration for Market Regulation (SAMR), China's top market
regulator, and it is based on a defined list of 27 permitted health
function claims which brand owners are permitted to use on product
labels.
Health function claims are based on test methods and criteria
that have been systematically evaluated and verified, and it is
currently envisaged that the existing list of 27 permitted health
function claims might be reduced to a revised list of 24 permitted
claims. The SAMR provides the possibility of adding new health
function claims to the list, as long as the claim can be evaluated
and verified by the SAMR.
Under SAMR regulations functional health foods need to indicate
a relationship between a food or nutrient and a consequent health
improvement which falls under one of the permitted health function
claims. This relationship must be supported by scientific tests
which are performed by the SAMR.
SAMR certified functional health foods are required to use a
blue cap / blue hat logo on their product packaging, which
identifies products as approved functional health foods.
By-Health's regulatory clearance preparations for Fruitflow were
originally focussed on obtaining blue cap health claim status for
some Fruitflow based products in China, under the existing 27
permitted health function claim structure.
By-Health is now working on an extensive regulatory submission
to the SAMR for Fruitflow, seeking to establish a new permitted
health function claim for foods such as Fruitflow that can
demonstrate an anti-platelet effect, inhibiting platelet function
and conferring beneficial effects for people who are at risk of
platelet hyperactivity-associated thrombosis - the aberrant blood
clots which lead to heart attacks and strokes.
By-Health has recently updated its website
www.by-health.com/en/aboutus stating that it has completed:
'Research comprehensively in the cardiovascular health area. We
have developed a new product made with Fruitflow(R), popularly
known as 'natural Aspirin'. It helps to maintain normal platelet
aggregation.'
By-Health currently expects to be in a position to complete the
last of its eight studies in 2022, and it will file its regulatory
submission to the SAMR for Fruitflow at the appropriate time
seeking to obtain a new permitted health function claim which would
be in addition to the currently defined list of 27 (reducing to 24)
permitted claims. Subject to the timing the new anti-platelet
claim, if approved, would therefore represent the 28th - or the
25th - permitted health function claim in China.
If By-Health is successful in obtaining a new permitted health
function claim for functional health foods such as Fruitflow that
can demonstrate an anti-platelet effect, it is currently expected
that this would result in some significant orders for Fruitflow,
potentially at a multiple of current total sales values.
Market opportunity
A study backed by scientists from the National Center for
Cardiovascular Diseases in China which was updated in 2020
(www.ncbi.nlm.nih.gov/pmc/articles/PMC7008101/#) stated that:
-- the prevalence of Cardiovascular Disease ('CVD') in China has
been increasing continuously since 2006, with approximately 290
million patients in China who now have CVD; and
-- two in five deaths in China are attributed to CVD, with CVD
remaining the leading cause of death in 2016.
In December 2020 the World Health Organisation reported
(www.who.int/news/item/09-12-2020-who-reveals-leading-causes-of-death-and-disability-worldwide-2000-2019):
'Heart disease has remained the leading cause of death at the
global level for the last 20 years. However, it is now killing more
people than ever before. The number of deaths from heart disease
increased by more than 2 million since 2000, to nearly 9 million in
2019. Heart disease now represents 16% of total deaths from all
causes. More than half of the 2 million additional deaths were in
the WHO Western Pacific region.' The WHO Western Pacific region
includes China.
By-Health's long-term goal of science-based nutrition is to
achieve 'comprehensive intervention for human health'
(www.by-health.com/en/aboutus), and Fruitflow is well placed to
provide such intervention in the Chinese cardiovascular health
market.
DSM Nutritional Products
The Company's Alliance partner DSM Nutritional Products ('DSM')
has continued to develop the market for Fruitflow in all global
markets. More than 100 regional consumer healthcare brands have now
been launched by direct customers of DSM, and a number of further
regional brands have been launched through DSM's distributor
channels.
An increasing number of further commercial projects have been
initiated with prospective customers, including some prospective
customers which are part of global businesses, and the total
projected annual sales value of the prospective sales pipeline for
Fruitflow continues to stand at a substantial multiple of existing
annual sales.
The Company's alliance agreement with DSM dates back to June
2010, with a contractual term which runs to 31 December 2022.
By default from 1 January 2023 the alliance agreement: (i)
permits DSM to continue to sell Fruitflow to its existing
customers, on the basis that a royalty on Fruitflow sales, fixed at
favourable market conditions, will remain payable to the Company;
and (ii) permits the Company to sell Fruitflow as an ingredient
directly to third parties, outside the existing profit sharing
arrangements.
The Agreement for Fruitflow announced in November 2021 between
the Company and By-Health falls under (ii) above, with the Company
set to sell Fruitflow as an ingredient directly to By-Health from 1
January 2023; 100% of the Company's sales of Fruitflow to By-Health
will accrue directly to the Company, and the Company will retain
all of the resulting profits.
The Company and DSM have started and remain currently engaged in
constructive negotiations working towards a new agreement. The
commercial terms of the negotiations remain confidential between
the two parties, and the Company will provide shareholders with a
further update in due course.
Supply chain
Fruitflow is currently produced by outsourced third party
manufacturers in Europe, and it is intended that the Company will
have direct access to these manufacturers for its sales of
Fruitflow to third parties. The Company and the third party
manufacturers are actively engaged in some ongoing production
capacity planning, looking at the steps required to scale-up the
production of Fruitflow to meet the anticipated increase in
demand.
Fruitflow+ dietary supplement products
Fruitflow+ Omega-3 is available to purchase from the Company's
subscription focussed e-commerce website www.fruitflowplus.com,
Amazon UK and Holland & Barrett.
The Fruitflow+ Omega-3 business grew by 34% to GBP76k in the
period to 30 September 2021 (2020: GBP57k), reflecting further
growth in subscriber numbers on the www.fruitflowplus.com website
which currently stand at a further new all-time high level.
In November 2020 the Company announced it had entered into a
distribution agreement with a company which is now acting as the
distributor for Fruitflow+ Omega-3 in China, exclusively through
the Chinese Cross-Border e-commerce ('CBEC') channel. A first test
order was placed by the distributor in the year ended 31 March
2021.
The distribution agreement in China is separate but wholly
complementary to the Company's work with By-Health, with the CBEC
regulations enabling the distributor to sell Fruitflow+ Omega-3 in
China now, prior to the health function claim which By-Health is
seeking to secure.
The Company's Fruitflow+ Omega-3 direct selling business has
been operating largely as normal throughout the COVID-19 pandemic,
and a further new production run of Fruitflow+ Omega-3 capsules was
completed in July 2021 thus ensuring continued supply of the
product.
The Company is seeking to expand further its commercial
activities with Fruitflow+ Omega-3 and other Fruitflow+ combination
products, and it is currently in dialogue with some other potential
international direct selling customers.
Scientific journal publications
1. In September 2020 Fruitflow was recognised in a review
article by the Frontiers in Nutrition journal
www.frontiersin.org/articles/10.3389/fnut.2020.583080/full which
stated that nutraceuticals such as Fruitflow may serve as:
'A safe antiplatelet prophylactic treatment for those at high
risk of COVID-19 who may also be at increased risk of thrombotic
complications and an alternative to pharmacological compounds that
may cause greater risk of bleeding.'
2. In January 2021 a review article was published by the
influential journal Medical Hypotheses, a leading peer-reviewed
journal which advances new discussion and innovation in medical
treatments.
The article
www.sciencedirect.com/science/article/pii/S0306987720333715, titled
'Platelet hyperactivity in COVID-19: Can the tomato extract
Fruitflow(R) be used as an antiplatelet regime?' was written by
Professor Asim K Duttaroy, who was the original inventor of
Fruitflow, and Dr Niamh O'Kennedy, Provexis plc's Chief Scientific
Officer.
3. In January 2021 a review article was published in the MDPI journal Nutrients www.mdpi.com/2072-6643/13/1/144/htm.
The article, titled the 'Role of Gut Microbiota and Their
Metabolites on Atherosclerosis, Hypertension and Human Blood
Platelet Function' was written by Professor Asim K Duttaroy and it
noted that emerging data suggest a strong relationship between
microbiota-derived compounds and an increased risk of CVD, with
widely accumulated data also indicating that Fruitflow may be
useful in the primary prevention of CVD. The article concluded that
there is a 'strong possibility of finding new approaches to treat
or prevent CVD' with further scientific work required seeking to
develop novel preventative or therapeutic regimes.
4. In June 2021 a further review article was published in the MDPI journal Nutrients www.mdpi.com/2072-6643/13/7/2184/htm.
The article, titled 'Dietary Antiplatelets: A New Perspective on
the Health Benefits of the Water-Soluble Tomato Concentrate
Fruitflow(R)' concluded that: 'Platelets have multifaceted
functions which generate a complicated set of interactions with
other vascular cells, leading to many roles outside haemostasis. As
our understanding of the role of platelet activation in response to
- and in complicating - inflammatory and infectious illnesses grow,
it becomes more apparent that platelet-targeted treatments are
necessary outside the field of CVD. Dietary antiplatelets such as
Fruitflow(R) can help provide suitably gentle and safe yet
efficacious treatments to improve public health in response to a
wide range of health challenges.'
5. In December 2021 a pilot study was published in the BMC
Nutrition journal
https://bmcnutr.biomedcentral.com/articles/10.1186/s40795-021-00485-5.
The study, titled 'Evaluation of the equivalence of different
intakes of Fruitflow in affecting platelet aggregation and thrombin
generation capacity in a randomized, double-blinded pilot study in
male subjects' concluded that it may be pertinent to personalise
the daily intake of Fruitflow(R) depending on individual platelet
response.
The publication of these five articles is a significant
opportunity for the Company and DSM to promote Fruitflow further
across scientific, trade customer and consumer channels.
Intellectual property
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow as part of the Alliance Agreement
with DSM, and patent coverage for Fruitflow now includes the
following patent families which are all owned outright by
Provexis:
Patent family Developments in the period from
Oct-21 to Dec-21
Improved Fruitflow / Fruit Extracts
Improved Fruitflow / Fruit Extracts, A Patent has proceeded to grant
with patents granted by the European in the Philippines.
Patent Office in January 2017 and
September 2020. Broad national coverage
has been secured.
The patent has been granted in eleven
other major territories to include
China and USA.
Applications are at a late stage
of progression in a further eight
global territories, with potential
patent protection out to November
2029.
------------------------------------
Antihypertensive (blood pressure
lowering) effects A Canadian patent application has
This patent was originally developed proceeded to grant.
in collaboration with the University
of Oslo, and it has now been granted
for Fruitflow in Europe, the US
and three other major territories.
Patent applications are being progressed
in a further three major territories
to include the US and China, with
potential patent protection out
to April 2033.
In August 2020 the Company announced
it had agreed to purchase the background
and joint foreground blood pressure
lowering IP owned by Inven2 AS,
the technology transfer office at
the University of Oslo, and Provexis
now owns these important patents
outright, with the licensing option
originally held by Inven2 having
been cancelled.
------------------------------------
Fruitflow with nitrates in mitigating
exercise-induced inflammation and
for promoting recovery from intense
exercise
Patents have been granted around
Europe and in the US, Australia,
Brazil, China, Hong Kong, Israel,
Japan, South Korea, the Philippines,
New Zealand and Mexico. Further
patent protection is being sought
in six territories, with potential
patent protection out to December
2033.
------------------------------------
Fruitflow for air pollution
The use of Fruitflow in protecting An Indonesian patent application
against the adverse effects of air has been accepted for grant.
pollution on the body's cardiovascular
system.
Laboratory work has shown that Fruitflow
can reduce the platelet activation
caused by airborne particulate matter,
such as that from diesel emissions,
by approximately one third.
A US patent has granted; an Indonesian
patent application is proceeding
to grant; and there are pending
applications in 15 jurisdictions
(including the US where a further
application has been filed) which
extends potential patent protection
for Fruitflow out to November 2037.
------------------------------------
Outlook
We were delighted to announce a supply and distribution
agreement for Fruitflow with By-Health in November 2021, which
follows our extensive work with By-Health over the last five years.
The agreement will take full effect from 1 January 2023.
By-Health currently expects to be in a position to complete the
last of its eight studies in 2022, and it will file its regulatory
submission to the SAMR for Fruitflow at the appropriate time,
seeking to obtain a new permitted health function claim for foods
such as Fruitflow that can demonstrate an anti-platelet effect. If
By-Health is successful in obtaining a new permitted health
function claim, it is currently expected that this would result in
some significant orders for Fruitflow, potentially at a multiple of
current total sales values.
Fruitflow is well placed to play an important role in the
Chinese cardiovascular health market under the permitted health
function claim legislation, and we look forward to working closely
with By-Health seeking to maximise the commercial success of this
agreement for the benefit of both companies.
The Company and DSM have had a strong long-term relationship,
with the shared interest of both companies being to maximise the
commercial returns that can be achieved from Fruitflow. The total
projected annual sales value of the prospective sales pipeline for
Fruitflow continues to stand at a substantial multiple of existing
annual sales.
The Alliance Agreement with DSM dates back to June 2010, with a
contractual term which runs to 31 December 2022. By default from 1
January 2023 the agreement: (i) permits DSM to continue to sell
Fruitflow to its existing customers, on the basis that a royalty on
Fruitflow sales, fixed at favourable market conditions, will remain
payable to the Company; and (ii) permits the Company to sell
Fruitflow as an ingredient directly to third parties, outside the
existing profit sharing arrangements.
The Company and DSM have started and remain currently engaged in
constructive negotiations working towards a new agreement. The
commercial terms of the negotiations remain confidential between
the two parties, and the Company will provide shareholders with a
further update in due course.
The Company has developed a strong, long lasting and
wide-ranging patent portfolio for Fruitflow, and it owns four
outright patent families for Fruitflow which have a truly global
footprint. The Company also holds other valuable intellectual
property and trade secrets for the technology. The intellectual
property for Fruitflow is of fundamental importance to the Company
and its current and future commercial partners, to include DSM and
By-Health, and it underpins the numerous commercial opportunities
which the Company and its partners are pursuing for Fruitflow.
The Company would like to thank its customers and shareholders
for their continued support, and the Board remains positive about
the outlook for Fruitflow and the Provexis business for the second
half of the financial year and beyond.
Dawson Buck Ian Ford
Chairman CEO
Consolidated statement of comprehensive
income Unaudited Unaudited Audited
Six months ended 30 September 2021 six months six months year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
GBP GBP GBP
Notes
----------------------------------------- ------ ------------- ------------- ----------
Revenue 211,195 237,075 505,330
Cost of goods (24,287) (20,728) (49,136)
----------------------------------------- ------ ------------- ------------- ----------
Gross profit 186,908 216,347 456,194
Selling and distribution costs (24,170) (22,956) (48,689)
Research and development costs (140,866) (135,171) (303,898)
Administrative costs (including share
based payment charges) (167,101) (262,104) (465,523)
R&D tax relief: receivable tax credit 650 1,590 2,460
Underlying operating loss (116,540) (95,480) (224,756)
Share based payment charges - share
options (28,039) (28,039) (55,925)
Share based payment charges - blood
pressure IP - (78,775) (78,775)
----------------------------------------- ------ ------------- ------------- ----------
Loss from operations (144,579) (202,294) (359,456)
Finance income 40 87 113
Loss before taxation (144,539) (202,207) (359,343)
Taxation - - -
Loss and total comprehensive expense for
the period (144,539) (202,207) (359,343)
------------------------------------------------- ------------- ------------- ----------
Attributable to:
Owners of the parent (130,164) (187,832) (341,007)
Non-controlling interests (14,375) (14,375) (18,336)
Loss and total comprehensive expense for
the period (144,539) (202,207) (359,343)
------------------------------------------------- ------------- ------------- ----------
Loss per share to owners of the parent
Basic and diluted - pence 3 (0.01) (0.01) (0.02)
----------------------------------------- ------ ------------- ------------- ----------
Consolidated statement of financial
position Unaudited Unaudited Audited
30 September 2021 30 September 30 September 31 March
2021 2020 2021
Notes GBP GBP GBP
------------------------------------- ------- ------------- ------------- -------------
Assets
Current assets
Inventories 107,640 80,997 60,576
Trade and other receivables 94,349 142,177 140,923
Corporation tax asset 14,610 13,090 13,960
Cash and cash equivalents 981,657 156,272 1,077,410
-------------
Total current assets 1,198,256 392,536 1,292,869
---------------------------------------------- ------------- ------------- -------------
Total assets 1,198,256 392,536 1,292,869
---------------------------------------------- ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (172,568) (169,248) (150,681)
Total current liabilities (172,568) (169,248) (150,681)
---------------------------------------------- ------------- ------------- -------------
Net current assets 1,025,688 223,288 1,142,188
---------------------------------------------- ------------- ------------- -------------
Total liabilities (172,568) (169,248) (150,681)
---------------------------------------------- ------------- ------------- -------------
Total net assets 1,025,688 223,288 1,142,188
---------------------------------------------- ------------- ------------- -------------
Capital and reserves attributable
to
owners of the parent company
Share capital 2,210,822 2,070,822 2,210,822
Share premium reserve 18,675,221 17,767,071 18,675,221
Merger reserve 6,599,174 6,599,174 6,599,174
Retained earnings (25,931,132) (25,703,718) (25,829,007)
---------------------------------------------- ------------- ------------- -------------
1,554,085 733,349 1,656,210
Non-controlling interest (528,397) (510,061) (514,022)
Total equity 1,025,688 223,288 1,142,188
---------------------------------------------- ------------- ------------- -------------
Consolidated statement of cash flows Unaudited Unaudited Audited
30 September 2021 six months six months year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
GBP GBP GBP
Cash flows from operating activities
Loss after tax (144,539) (202,207) (359,343)
Adjustments for:
Finance income (40) (87) (113)
Tax credit receivable (650) (1,590) (2,460)
Share-based payment charge - share options 28,039 28,039 55,925
Share-based payment charges - blood
pressure IP - 78,775 78,775
Changes in inventories (47,064) (70,913) (50,492)
Changes in trade and other receivables 46,614 (2,459) (1,374)
Changes in trade and other payables 21,887 19,171 604
----------
Net cash flow from operations (95,753) (151,271) (278,478)
-------------------------------------------- ------------- ------------- ----------
Tax credits received - 16,202 16,202
Total cash flow from operating activities (95,753) (135,069) (262,276)
-------------------------------------------- ------------- ------------- ----------
Cash flow from investing activities
Purchase of blood pressure IP - cash
element - - (250)
Interest received - 6 201
Total cash flow from investing activities - 6 (49)
-------------------------------------------- ------------- ------------- ----------
Cash flow from financing activities
Proceeds from issue of share capital - - 1,048,400
Total cash flow from financing activities - - 1,048,400
-------------------------------------------- ------------- ------------- ----------
Net change in cash and cash equivalents (95,753) (135,063) 786,075
Opening cash and cash equivalents 1,077,410 291,335 291,335
Closing cash and cash equivalents 981,657 156,272 1,077,410
-------------------------------------------- ------------- ------------- ----------
Consolidated statement Total
of changes in equity Share Share Merger Retained equity Non- Total
30 September 2021 attributable
to owners controlling
capital premium reserve earnings of interests equity
the parent
GBP GBP GBP GBP GBP GBP GBP
------------------------ ---------- ----------- ---------- ------------- ------------- ------------- ----------
At 31 March 2020 2,059,322 17,699,796 6,599,174 (25,543,925) 814,367 (495,686) 318,681
Share-based charges -
share options - - - 28,039 28,039 - 28,039
Share-based charges -
blood pressure IP - - - 78,775 78,775 - 78,775
Issue of shares 19
August
2020 - blood pressure
IP 11,500 67,275 - (78,775) - - -
Total comprehensive
expense
for the period - - - (187,832) (187,832) (14,375) (202,207)
At 30 September 2020 2,070,822 17,767,071 6,599,174 (25,703,718) 733,349 (510,061) 223,288
------------------------ ---------- ----------- ---------- ------------- ------------- ------------- ----------
Share-based charges -
share options - - - 27,886 27,886 - 27,886
Issue of shares 19
August
2020 - blood pressure
IP - (250) - - (250) - (250)
Issue of shares -
placing
23 December 2020 133,333 865,417 - - 998,750 - 998,750
Issue of shares -
placing
25 February 2021 6,667 42,983 - - 49,650 - 49,650
Total comprehensive
expense
for the period - - - (153,175) (153,175) (3,961) (157,136)
At 31 March 2021 2,210,822 18,675,221 6,599,174 (25,829,007) 1,656,210 (514,022) 1,142,188
------------------------ ---------- ----------- ---------- ------------- ------------- ------------- ----------
Share-based charges -
share options - - - 28,039 28,039 - 28,039
Total comprehensive
expense
for the period - - - (130,164) (130,164) (14,375) (144,539)
At 30 September 2021 2,210,822 18,675,221 6,599,174 (25,931,132) 1,554,085 (528,397) 1,025,688
------------------------ ---------- ----------- ---------- ------------- ------------- ------------- ----------
1. General information, basis of preparation and accounting
policies
General information
Provexis plc is a public limited company incorporated and
domiciled in the United Kingdom (registration number 05102907). The
address of the registered office is 2 Blagrave Street, Reading,
Berkshire RG1 1AZ, UK.
The main activities of the Group are those of developing,
licensing and selling the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient.
Basis of preparation
This condensed financial information has been prepared using
accounting policies consistent with International Financial
Reporting Standards in the European Union (IFRS).
The same accounting policies, presentation and methods of
computation are followed in this condensed financial information as
are applied in the Group's latest annual audited financial
statements, except as set out below. While the financial figures
included in this half-yearly report have been computed in
accordance with IFRS applicable to interim periods, this
half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in
IAS 34.
Use of non-GAAP profit measure - underlying operating profit
The directors believe that the operating loss before share based
payments measure provides additional useful information for
shareholders on underlying trends and performance. This measure is
used for internal performance analysis. Underlying operating loss
is not defined by IFRS and therefore may not be directly comparable
with other companies' adjusted profit measures. It is not intended
to be a substitute for, or superior to IFRS measurements of
profit.
The interim financial information does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006 and
has been neither audited nor reviewed by the Company's auditors
James Cowper Kreston pursuant to guidance issued by the Auditing
Practices Board.
The results for the year ended 31 March 2021 are not statutory
accounts. The statutory accounts for the last year ended 31 March
2021 were approved by the Board on 29 September 2021 and are filed
at Companies House. The report of the auditors on those accounts
was unqualified, and did not contain a statement under section 498
of the Companies Act 2006.
The interim report for the six months ended 30 September 2021
can be downloaded from the Company's website www.provexis.com.
Further copies of the interim report and copies of the 2021 annual
report and accounts can be obtained by writing to the Company
Secretary, Provexis plc, 2 Blagrave Street, Reading, Berkshire RG1
1AZ, UK.
This announcement was approved by the Board of Provexis plc for
release on 31 December 2021.
Going concern
The Directors are of the opinion that at 31 December 2021, the
Group and Company's liquidity and capital resources are adequate to
deliver the current strategic objectives and 2022 business plan and
that the Group and Company remain a going concern.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2021, as
described in those annual financial statements.
2. Segmental reporting
The Group's operating segments are determined based on the
Group's internal reporting to the Chief Operating Decision Maker
(CODM). The CODM has been determined to be the Board of Directors
as it is primarily responsible for the allocation of resources to
segments and the assessment of performance of the segments. The
performance of operating segments is assessed on revenue.
The CODM uses revenue as the key measure of the segments'
results as it reflects the segments' underlying trading performance
for the financial period under evaluation. Revenue is reported
separately to the CODM and all other reports are prepared as a
single business unit.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
DSM Alliance Agreement 135,188 171,976 357,879
Fruitflow+ Omega-3 76,007 56,753 138,251
Fruitflow+ nitrates development products - 8,346 9,200
211,195 237,075 505,330
------------------------------------------ ------------- ------------- ---------
3. Earnings per share
Basic earnings per share amounts are calculated by dividing the
profit attributable to owners of the parent by the weighted average
number of ordinary shares in issue during the period.
The loss attributable to equity holders of the Company for the
purpose of calculating the fully diluted loss per share is
identical to that used for calculating the basic loss per share.
The exercise of share options would have the effect of reducing the
loss per share and is therefore anti-dilutive under the terms of
IAS 33 'Earnings per Share'.
Basic and diluted loss per share amounts are in respect of all
activities.
There were 168,500,000 share options in issue at 30 September
2021 (2020: 193,500,000) that are currently anti-dilutive and have
therefore been excluded from the calculations of the diluted loss
per share.
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
Loss for the period attributable
to owners of the parent - GBP 130,164 187,832 341,007
Weighted average number of shares 2,210,821,523 2,061,960,851 2,102,799,137
Basic and diluted loss per share
- pence 0.01 0.01 0.02
----------------------------------- -------------- -------------- --------------
4. Share capital and Total Voting Rights
At 31 December 2021, the date of this announcement, the
Company's issued share capital comprises 2,210,821,523 ordinary
shares of 0.1 pence each, each with equal voting rights. The
Company does not hold any shares in treasury and therefore the
total number of ordinary shares and voting rights in the Company is
2,210,821,523.
The above figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or change to
their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
5. Cautionary statement
This document contains certain forward-looking statements with
respect to the financial condition, results and operations of the
business. These statements involve risk and uncertainty as they
relate to events and depend on circumstances that will incur in the
future. Nothing in this interim report should be construed as a
profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR WPGBPPUPGPUU
(END) Dow Jones Newswires
December 31, 2021 01:59 ET (06:59 GMT)
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