Audited Final Results

RNS Number : 7490B

Venn Life Sciences Holdings PLC

11 June 2019

 

11 June 2019

Venn Life Sciences Holdings Plc

("Venn", "Venn Life Sciences" or the "Company")

Audited Final Results for the year ended 31 December 2018

Venn Life Sciences (AIM: VENN), an Integrated Drug Development Partner offering a combination of drug development expertise and clinical trial design and management to pharmaceutical, biotechnology and medical device organisations, announces its audited results for the year ended 31 December 2018.

Financial Highlights

·    Total revenue was €14.3m (2017: €17.8m)

·      EBITDA Loss (before exceptional items) of €1.43m (2017: profit €0.83m)

·      Write down of €2.2m on the impairment of Intangible Assets  

·    Loss for the year after tax of €4.8m (2017: €1.7m) after a charge of €2.6m (2017: €1.7m) being investment write-down on Integumen PLC (€0.4m) and impairment of intangible assets (€2.2m)

·    Arrangement of £1.0 million loan note in December to support working capital and collaboration with Open Orphan

·    Cash and cash equivalents of €1.1m as at 31 December 2018 (2017: €1.2m)

Operational Highlights

·    Improved revenue mix with lower key client dependency

·    Maintenance of billable resource base despite project deferrals, enabling quicker business recovery

·    Strategic collaboration with Open Orphan and focus on Rare and Orphan indications

·    Successful management of ground breaking, life-saving technology development program providing invaluable reference point for future business generation

Outlook

Post the year end the Company has experienced a continuation of prior year trends with low utilisation resulting in revenue and EBITDA being behind management forecasts for the year to date. Based on the current proposals book the Directors expect there should be an increase in revenues in the coming months. However, the Company continues to require careful management of available cash resources and the Directors expect additional financial resources to be required in order for the Company to successfully execute its growth strategy.

Commenting on the Group's results, Cathal Friel, CEO of Venn, said:

"The year to 31 December 2018 has been challenging for the Company with a need to closely monitor cash resources; a trend that continued into 2019, notwithstanding the cash realised from the recent disposals of investment assets. The new Board has taken a very prudent approach to all matters associated with the past performance of Venn and is comfortable that the Company now has a solid platform from which to move forward. We are optimistic that with the commencement of deferred projects and a new business focus on Rare and Orphan indications, as demonstrated by the proposed acquisition of Open Orphan DAC, that the business can return to revenue growth in the near term."

Enquiries:

Venn Life Sciences Holdings Plc Tel: [phone]
Cathal Friel / Tony Richardson

Arden Partners (Nominated Advisor and Joint Broker) Tel: [phone]
John Llewellyn-Lloyd / Ruari McGirr / Benjamin Cryer

Davy (Euronext Growth Adviser and Joint Broker) Tel: [phone]
Anthony Farrell (Corporate Finance) / Ivan Murphy

Camarco (Financial PR) Tel: [phone]
Tom Huddart / Billy Clegg / Daniel Sherwen

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2018

		2018		2017 Restated
		€'000		€'000
Continuing operations
Revenue		13,920		17,405
Direct Project and Administrative Costs		(16,658)		(17,897)
Other operating income		371		410
Operating (loss)		(2,367)		(82)
Depreciation		(95)		(99)
Amortisation		(840)		(792)
Exceptional items		(-)		(25)
EBITDA before exceptional items		(1,432)		834
Finance income		10		-
Share of loss of investments accounted for using the equity method		(-)		(874)
Impairment of fixed asset investments		(421)		(843)
Impairment of Intangible Assets		(2,232)		-
(Loss) before income tax		(5,010)		(1,799)
Income tax credit		235		127
(Loss) for the year from continuing operations		(4,775)		(1,672)
Loss for the year is attributable to:
Owners of the parent		(4,775)		(1,672)
		(4,775)		(1,672)
Other comprehensive income
Currency translation differences		85		(139)
Total comprehensive (loss) for the year		(4,690)		(1,811)
Total comprehensive (loss) for the year is attributable to:
Owners of the parent		(4,690)		(1,811)
		(4,690)		(1,811)
Total comprehensive (loss) for the year attributable to owners of the parent arises from:
Continuing operations		(4,690)		(1,811)
		(4,690)		(1,811)
Earnings per share from continuing operations attributable to owners of the parent during the year
Basic and diluted (loss) per ordinary share
From continuing operations		(7.31c)		(2.77c)
From (loss) for the year		(7.31c)		(2.77c)

Consolidated Statement of Financial Position

As at 31 December 2018

				Group	Group
				2018	2017 Restated
				€'000	€'000
Assets
Non-current assets
Property, plant and equipment				263	312
Intangible assets				996	4,034
Investments				31	31
Total non-current assets				1,290	4,377
Current assets
Trade and other receivables				6,004	5,514
Income tax recoverable				7	107
Cash and cash equivalents				1,098	1,175
Assets held for sale				259	680
Total current assets				7,368	7,476
Total assets				8,658	11,853
Equity attributable to owners
Share capital				168	155
Share premium account				14,701	14,026
Group re-organisation reserve				(541)	(541)
Reverse acquisition reserve				45	45
Other Reserve				(34)	-
Foreign currency reserves				(41)	(126)
Retained earnings				(9,939)	(5,164)
Total equity				4,359	8,395
Liabilities
Non-current liabilities
Borrowings				1,093	-
Total non-current liabilities				1,093	-
Current liabilities
Trade and other payables				2,538	2,999
Deferred taxation				199	434
Borrowings				469	25
Total current liabilities				3,206	3,458
Total liabilities				4,299	3,458
Total equity and liabilities				8,658	11,853

Consolidated Statement of Cash Flows

For the year ended 31 December 2018

				Group	Group
				2018	2017
				€'000	€'000
Cash Flow from operating activities
Continuing operations
Cash used in operations				(1,105)	(1,282)
Income tax (paid)				(-)	(64)
Net cash used in operating activities				(1,105)	(1,346)
Cash flow from investing activities
Investment in associate				(35)	(465)
Purchase of intellectual property				(33)	(327)
Purchase of property, plant and equipment				(46)	(193)
Interest received				10	-
Net cash used in investing activities				(104)	(985)
Cash flow from financing activities
Proceeds from issuance of ordinary shares				688	-
Proceeds from invoice discounting				469	-
Repayments on borrowings				(25)	(35)
Net cash generated by financing activities				1,132	(35)
Net (decrease) in cash and cash equivalents				(77)	(2,366)
Cash and cash equivalents at beginning of year				1,175	3,541
Cash and cash equivalents at end of year				1,098	1,175

Consolidated Statement of Changes in Shareholders' Equity

	Share capital	Share premium	Other Reserves	Share Option reserve	Foreign currency reserve	Restated Retained earnings	Total
	€'000	€'000	€'000	€'000	€'000	€'000	€'000
At 1 January 2017 as previously stated	155	14,026	(496)	28	13	(3,294)	10,432
Prior Year Adjustment	-	-	-	-	-	(226)	(226)
At 1 January 2017 after prior year adjustment	155	14,026	(496)	28	13	(3,520)	10,206
Changes in equity for the year ended 31 December 2017
(Loss) for the year as previously  stated	-	-	-	-	-	(1,538)	(1,538)
Prior Year adjustment						(134)	(134)
Currency translation differences	-	-	-	-	(139)	-	(139)
Total comprehensive (loss) for the year	-	-	-	-	(139)	(1,672)	(1,811)
Transactions with the owners
Shares issued	-	-	-	-	-	-	-
Share option provision reversed	-	-	-	(28)	-	28	-
Total contributions by and distributions to owners	-	-	-	(28)	-	28	-
At 31 December 2017 after prior year adjustment	155	14,026	(496)	-	(126)	(5,164)	8,395
Changes in equity for the year ended 31 December 2018
(Loss) for the year	-	-	-	-	-	(4,775)	(4,775)
Currency translation differences	-	-	-	-	85	-	85
Total comprehensive (loss) for the year	-	-	-	-	85	(4,775)	(4,690)
Transactions with the owners
Shares issued	13	675	-	-	-	-	688
Purchase of minority Interest	-	-	(34)	-	-	-	(34)
Total contributions by and distributions to owners	13	675	(34)	-	-	-	654
At 31 December 2018	168	14,701	(530)	-	(41)	(9,939)	4,359

Note: 'Other reserves' above includes Group re-organisation reserve, Reverse acquisition reserve and Other reserve relating to non-controlling interest buy-back.

1. General information

Venn Life Sciences Holdings Plc is a company incorporated in England and Wales. The Company is a public limited company listed on the AIM market of the London Stock Exchange. On 18 January 2016, the company also listed on the ESM market of the Irish Stock Exchange. The address of the registered office is 2nd Floor, Berkeley Square House, Mayfair London, W1J 6BD.

The principal activity of the Group is that of a Clinical Research Organisation providing a suite of consulting and clinical trial services to pharmaceutical, biotechnology and medical device organisations. The Group has a presence in the UK, Ireland, France, Netherlands, Germany and Singapore.

The financial statements are presented in Euros, the currency of the primary economic environment in which the Group's trading companies operate. The Group comprises Venn Life Sciences Holdings Plc and its subsidiary companies.

The registered number of the Company is 07514939.

2.   Earnings per share

(a) Basic                                              

Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

											Restated
									Year ended		Year ended
									31 December		31 December
									2018 €'000		2017 €'000
Loss from continuing operations attributable to equity holders of the Company (€'000)									(4,775)		(1,672)
Total									(4,775)		(1,672)
Weighted average number of Ordinary Shares in issue									65,293,943		60,284,263

b) Diluted

Due to the losses in the periods the effect of the share options and warrants noted below were considered to be anti-dilutive.

					Restated
		Year ended			Year ended
		31 December 2018			31 December 2017
Potential dilutive ordinary shares
Options		6,544,167			4,985,288
Warrants		418,749			166,666
Total		6,962,916			5,151,954

3.             Prior Year adjustments

1.     As a result of the adoption of IFRS15 a full review of accrued income on all active and completed contracts was undertaken in 2018 and the result was a €226,000 correction was required to the year end 2016 retained earnings balance carried forward for accrued income.

2.     There was a release of €134,000 held in an escrow account in 2017 relating to the completion of a purchase of a subsidiary. A 2016 accrual should have been reversed in 2017 when the escrow account was released this has corrected as a prior year adjustment in 2017.

 

END

 

 

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