Half-year Report

RNS Number : 0321T

Provexis PLC

30 December 2016

 

30 December 2016                                                   Provexis plc

UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2016

Provexis plc ("Provexis" or the "Company"), the business that develops, licenses and sells the proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient, announces its unaudited interim results for the six months ended 30 September 2016.

Key highlights

·      Total revenue for the period £123k (2015: £41k), a threefold increase from the prior year. Revenue for the half year to September 2016 exceeds revenue for the full year to March 2016.

·      Revenue from profit sharing Alliance for the period £88k, a 115% year on year increase (2015: £41k).

·      Over 50 regional consumer healthcare brands containing Fruitflow® now launched by DSM's customers, with further regional brands launched through DSM's distributor channels. 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.

·      Strategic collaboration agreement announced in November 2016 for Fruitflow® between DSM and BY-HEALTH, a £2bn listed Chinese dietary supplement business. Collaboration will focus on the development of new products that contribute to cardiovascular health, to include evaluation and testing procedures to accord with Chinese technical and regulatory standards.

·      Second stage of the Company's blood pressure pilot study for Fruitflow® announced, indicating that Fruitflow® significantly lowered blood pressure in waking subjects; encouraging blood pressure results are expected to have a positive effect on current and future commercial negotiations for Fruitflow®.

·      Fruitflow® comparison study with aspirin published in the European Journal of Clinical Nutrition, providing strong support for the use of Fruitflow® in the primary prevention of cardiovascular disease.

·      Key Opinion Leaders' roundtable event for Fruitflow® took place in London in September 2016, promoting Fruitflow® across key digital and other mainstream media channels; event is being supported by a broader consumer PR campaign for the Fruitflow® + Omega-3 capsules product.

·      Further detailed scientific study for Fruitflow® published in the European Journal of Nutrition in July 2016, further study publications are envisaged.

·      Company launched its Fruitflow® + Omega-3 dietary supplement product in June 2016, a two-in-one supplement in an easy to take capsule supporting healthy blood flow and normal heart function. Product achieved sales of £7k in the period through the new e-commerce website www.fruitflowplus.com, further sales channel opportunities are currently being explored.

·      Company raised £249k through two placings in August and September 2016 with no commissions or expenses payable.

·      Underlying operating loss* reduced to £128k (2015: £196k), a record low for the Group.

·      Cash £243k at 30 September 2016 (2015: £350k). Based on its current level of cash it is expected that the Group will need to raise further equity finance in the coming four months, which will help fund some further sales channel opportunities which are currently being explored for the Group's Fruitflow® + Omega-3 dietary supplement product.

*before share based payments of £13k (2015: £34k), as set out on the face of the Consolidated Statement of Comprehensive Income

Provexis Executive Chairman Dawson Buck commented:

"We are pleased to be able to report on a period of significant progress for the Company, to include:

·      A threefold increase in reported revenue to £123k;

·      The announcement of a strategic collaboration agreement for Fruitflow between DSM and Chinese listed BY-HEALTH, focussing on the development of new products that contribute to cardiovascular health in China;

·      The second stage of the Company's blood pressure pilot study for Fruitflow which indicated that Fruitflow significantly lowered blood pressure in waking subjects;

·      A Fruitflow comparison study with aspirin published in the European Journal of Clinical Nutrition, providing strong support for the use of Fruitflow in the primary prevention of cardiovascular disease;

·      A key Opinion Leaders' roundtable event for Fruitflow which took place in London in September 2016;

·      A further detailed scientific study for Fruitflow which was published in the European Journal of Nutrition in July 2016.

·      The launch of the Company's Fruitflow + Omega-3 dietary supplement product in late June 2016, which is expected to provide the Company with an additional long term income and profit stream.

The Company expects that these strongly positive announcements and initiatives will have a beneficial effect on the current and future commercial prospects for Fruitflow. The Company is well placed to maximise the commercial opportunities arising from these developments for Fruitflow and the Provexis business.

We remain positive about the outlook for the business for the second half of the year and beyond."

This announcement contains inside information.

For further information please contact:

Provexis plc                                                                    Tel:         [phone]

Dawson Buck, Chairman                                                  [e-mail]

Ian Ford, Finance Director

Cenkos Securities plc                                                      Tel:         [phone]

Bobbie Hilliam

 

Chairman's statement

The Company has had a strong and very active first six months of the year, and it is pleasing to report a more than threefold increase in revenue for the period.

The Company's Alliance partner DSM Nutritional Products has continued to develop the market actively for Fruitflow® in all global markets. More than 50 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.

Total revenues for the period were £123k (2015: £41k), a 200% increase from the prior year. Revenue for the half year to September 2016 exceeds revenue for the full year to March 2016.

Revenues accruing to the Company for the period from its profit sharing Alliance for Fruitflow® were £88k, a 115% year on year increase (2015: £41k).

The Company launched its Fruitflow® + Omega-3 dietary supplement product in late June 2016 and the product achieved sales of £7k in the period through the new e-commerce website www.fruitflowplus.com. The rate of sales for the product has increased since the period end.

The balance of revenue recognised in the period reflects amounts in excess of £28k (2015: £Nil) received for marketing support; the related marketing expenditure is included as part of administrative costs.

The underlying operating loss for the period was £128k (2015: loss of £196k), a 35% year on year reduction and a record low for the Group, reflecting significantly higher revenues set against the Group's low overhead licensing business model.

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, with good prospects for these projects to be launched as consumer products. Interest in the technology exists in all major global markets.

The Company announced in November 2016 that DSM had entered into a strategic collaboration agreement for Fruitflow® with BY-HEALTH Co., Ltd, a substantial listed Chinese dietary supplement business.

The strategic collaboration agreement between DSM and BY-HEALTH will focus on the development of new products that contribute to cardiovascular health, to include the establishment of relevant evaluation and testing procedures to accord with Chinese technical and regulatory standards.

There are already more than 230m people in China who are thought to have cardiovascular disease and a significant increase in cardiovascular events is expected in China over the course of the next decade based on population aging and growth alone. The Company believes that Fruitflow® has the potential to play an important role in primary prevention in the Chinese market.

Fruitflow® and Blood Pressure - Collaboration with University of Oslo

In November 2014 the Company signed a two stage collaboration agreement with the University of Oslo seeking to undertake further research into the relationship between Fruitflow® and blood pressure regulation. Recent work undertaken by the University has shown that Fruitflow® has a potential new bioactivity, leading to blood pressure lowering effects which would be of relevance to a large number of consumers and patients with a wide range of cardiovascular conditions.

The first stage of the collaboration work, completed in 2015, was focussed on developing the science and the key results from this stage were very encouraging, with strong evidence from the laboratory based work that a standard 150mg dose of Fruitflow® in powder format has the potential to give a clinically relevant reduction in systolic blood pressure.

The Company and the University completed the second stage of the collaboration work in December 2016, which had seen the parties conduct a small clinical trial in Oslo by way of a proof of principle study. The study examined the acute effects of different amounts of Fruitflow® in powder format on parameters relating to blood pressure, such as systolic and diastolic blood pressure, mean arterial pressure, pulse pressure and heart rate. These blood pressure related parameters were monitored over a 24-hour period using ambulatory blood pressure monitoring. Platelet function was also measured. The trial subjects, who were healthy with no underlying cardiovascular disease or other conditions likely to affect blood pressure, received both placebo and Fruitflow® supplements in a blinded crossover design.

Results from the pilot study indicated that a 150mg dose of Fruitflow® in powder format significantly lowered the average 24-hour systolic blood pressure compared to placebo. When the monitoring time was split into waking and sleeping periods, both systolic and diastolic blood pressure were significantly lower after 150mg Fruitflow® treatment than after placebo treatment during the waking period; systolic pressure was also significantly lower during the sleeping period.

Raised blood pressure is estimated to cause more than 7 million premature deaths throughout the world each year, and 4.5% of the disease burden. Treating raised blood pressure by way of achieving systolic blood pressure < 140 and diastolic blood pressure < 80 has been associated with a 35-40% reduction in the risk of stroke and at least a 16% reduction in the risk of heart attack (WHO 2007). The pilot study results therefore show that Fruitflow® may have clinically relevant effects in blood pressure control.

The University of Oslo's research team was led by Professor Asim Duttaroy, Group Leader of Chronic Disease at the Faculty of Medicine, who was the original inventor of Fruitflow®. Provexis' work under the collaboration was led by Dr Niamh O'Kennedy, a research chemist specialising in the field of natural products chemistry who played a key role in the development of Fruitflow®, and the health claim for Fruitflow® which was adopted by the European Food Safety Authority ('EFSA').

Fruitflow® and Fruitflow® + Omega-3 marketing initiatives

The Company and DSM are committed to a number of ongoing scientific and marketing initiatives for Fruitflow® and the Company's Fruitflow® + Omega-3 capsules, seeking to extend the reach of the existing science for Fruitflow® and give the products further global exposure. Scientific and marketing initiatives include:

Scientific studies

On 23 November 2016 the Company announced the publication of an important study for Fruitflow® in the European Journal of Clinical Nutrition.

The study, titled 'A randomised controlled trial comparing a dietary antiplatelet, the water-soluble tomato extract Fruitflow®, with 75mg aspirin in healthy subjects' was undertaken by Provexis with independent statistical analysis by BIOSS, and it compared the effects of Fruitflow® and 75mg aspirin. Interactions between Fruitflow® and aspirin when consumed together were also studied. A total of 47 healthy subjects completed the trial over a 7-month period.

The study, which is available to view on the Company's website at www.provexis.org/wp-content/uploads/2016/12/EJCN-Aspirin-Fruitflow-study-23-Nov-16.pdf demonstrates that Fruitflow® showed up to 30% reduction from baseline platelet aggregation in each of three different biological pathways, while a single dose of aspirin caused up to 60% reduction in a single pathway, with lesser effects on the other two. The study showed no negative interactions between Fruitflow® and aspirin when consumed together.

The study findings are statistically significant and serve to demonstrate the potential effectiveness of Fruitflow® as a dietary supplement with a significant effect on blood flow, suitable for daily use in primary prevention of CVD, and with no adverse side effects.

The World Health Organization reports that more people die annually from CVDs than from any other cause, and the US FDA states that after carefully examining scientific data from major studies, it has concluded 'the data do not support the use of aspirin as a preventive medication by people who have not had a heart attack, stroke or cardiovascular problems, a use that is called 'primary prevention.' In such people, the benefit has not been established but risks - such as dangerous bleeding into the brain or stomach - are still present.'

On 12 July 2016 the Company announced the publication of another important study for Fruitflow® in the European Journal of Nutrition.

The study, titled 'Fruitflow®: the first European Food Safety Authority-approved natural cardio-protective functional ingredient' includes a scientific summary of the entire Fruitflow® project from its inception and it is expected to be a significant opportunity to promote Fruitflow® further across scientific, trade customer and consumer channels. The study is available to view on the Company's website at www.provexis.org/wp-content/uploads/2016/07/Fruitflow%C2%AE-the-first-European-Food-Safety-Authority-approved-natural-cardio-protective-functional-ingredient-07-Jul-16.pdf

It is envisaged that further study publications for Fruitflow® will be submitted to appropriate scientific journals in due course.

Key Opinion Leaders' roundtable

The Company conducted a Key Opinion Leaders' roundtable event for Fruitflow® in London on 29 September 2016, with considerable support from DSM.

The roundtable was focussed on raising awareness of the importance of blood flow in cardiovascular health, and the effectiveness of dietary antiplatelets, and it was attended by key scientists from Provexis and DSM, along with a number of interested health care professionals with close links to the national media. The event was recorded with a view to producing two further promotional videos: a video for Fruitflow® targeting prospective trade customers, and a video for Fruitflow® + Omega-3 capsules targeting prospective consumers which can be seen here www.youtube.com/watch?v=P3HCSdyupEY&t=71s

The Company and DSM are keen to secure greater medical advocacy for Fruitflow® and the roundtable event forms part of this strategy. The roundtable event is also being supported by a broader consumer PR campaign.

Digital marketing strategy

A digital marketing strategy, strongly supported by DSM, is also in the process of being implemented, seeking to drive and optimise online leads and sales for the Company's Fruitflow® + Omega-3 capsules. The capsules have been promoted across key social media and other search platforms, to include DSM's key digital communities and channels.

Other marketing initiatives

Other marketing initiatives for Fruitflow® have seen the product being promoted at several major food ingredient and dietary supplement trade shows. The product has been featured in numerous publications and it has been the subject of several trade seminars and presentations, some of which are available to view in the news section of the Company's website www.provexis.com.

Fruitflow® + Omega-3 dietary supplement product

On 29 June 2016 the Company announced the launch of its new Fruitflow® + Omega-3 dietary supplement product, which is exclusively available through the Company's new e-commerce website www.fruitflowplus.com, the product also has a Facebook page at www.facebook.com/FruitflowPlus

Fruitflow® + Omega-3 is a two-in-one supplement in an easy to take capsule, supporting healthy blood flow and normal heart function, and it achieved sales of £7k in the period. The rate of sales for the product has increased since the period end, and further sales channel opportunities for the product are currently being explored.

The new dietary supplement product is expected to provide the Company with an additional long term income and profit stream, and the fruitflowplus.com website will be able to accommodate further potential Fruitflow® combination product derivatives.

Intellectual property

The Company is responsible for filing and maintaining patents and trade marks for Fruitflow® as part of the Alliance Agreement with DSM. We are pursuing a strategy to strengthen the breadth and duration of our patent coverage to maximise the commercial returns that can be achieved from the technology. Trade marks were originally registered in the larger global territories, and new registrations are typically now sought in additional territories in response to requests from current or prospective DSM customers for Fruitflow®.

In December 2013 British and international patent applications were filed for the use of Fruitflow® in mitigating exercise-induced inflammation and for promoting recovery from intense exercise, seeking to enhance further the potential of the technology in the sports nutrition sector. Patents are being sought in Europe, the US, China and ten other territories, and this patent application has now entered the national phase, with potential patent protection out to December 2033.

The Company's patent application for Fruit Extracts, relating to part of the production process for Fruitflow®, is now expected to proceed to grant in Europe in the coming weeks, giving patent protection out to November 2029.

Crohn's disease intellectual property

The Group continues to maintain the Crohn's disease intellectual property registered in Provexis (IBD) Limited, a company which is 75% owned by Provexis plc and 25% owned by The University of Liverpool. The Group continues to investigate further options for the Crohn's disease project, seeking to maximise its value.

Capital structure and funding

The Company is seeking to maximise the commercial returns that can be achieved from its Fruitflow® technology, and the Company's cost base and its resources continue to be very tightly managed. The Company remains keen to minimise dilution to shareholders and it is focussed on moving into profitability as Fruitflow® revenues increase, but while the Company remains in a loss making position it will need to raise working capital on occasions.

In June 2015 the Company joined PrimaryBid.com (www.primarybid.com), the online platform dedicated to equity crowdfunding for AIM-listed companies, and in July 2015 the Company announced that it had raised net proceeds of £267k through the new platform.

The Company raised a further £249k through two placings in August and September 2016 outside the PrimaryBid platform, with no commissions or expenses payable.

The Group has access to future equity financings as potential additional sources of funding, primarily through an equity fundraising with the Company's shareholders, or the existing PrimaryBid.com platform. Based on its current level of cash it is expected that the Group will need to raise further equity finance in the coming four months. The funding proceeds which the Company expects to receive will help the Company fund ongoing promotional activities for its Fruitflow® + Omega-3 dietary supplement product, to include the further sales channel opportunities which are currently being explored.

Outlook

We are pleased to be able to report on a period of significant progress for the Company, to include:

·      A threefold increase in reported revenue to £123k;

·    The announcement of a strategic collaboration agreement for Fruitflow® between DSM and Chinese listed BY-HEALTH, focussing on the development of new products that contribute to cardiovascular health in China;

·   The second stage of the Company's blood pressure pilot study for Fruitflow® which indicated that Fruitflow® significantly lowered blood pressure in waking subjects;

·     A Fruitflow® comparison study with aspirin published in the European Journal of Clinical Nutrition, providing strong support for the use of Fruitflow® in the primary prevention of cardiovascular disease;

·      A key Opinion Leaders' roundtable event for Fruitflow® which took place in London in September 2016;

·      A further detailed scientific study for Fruitflow® which was published in the European Journal of Nutrition in July 2016;

·      The launch of the Company's Fruitflow® + Omega-3 dietary supplement product in late June 2016, which is expected to provide the Company with an additional long term income and profit stream.

The Company expects that these strongly positive announcements and initiatives will have a beneficial effect on the current and future commercial prospects for Fruitflow®. The Company is well placed to maximise the commercial opportunities arising from these developments for Fruitflow® and the Provexis business.

We remain positive about the outlook for the business for the second half of the year and beyond.

Dawson Buck

Chairman

 

Consolidated statement of comprehensive income		Unaudited	Unaudited	Audited
Six months ended 30 September 2016		six months	six months	year
		ended	ended	ended
		30 September	30 September	31 March
		2016	2015	2016
		£	£	£
	Notes
Revenue		123,456	40,908	91,649
Cost of goods		(2,278)	-	-
Gross profit		121,178	40,908	91,649
Selling and distribution costs		(2,929)	-	-
Research and development costs		(53,092)	(93,938)	(192,236)
Administrative costs		(205,441)	(177,172)	(354,892)
Underlying operating loss		(127,685)	(196,045)	(385,210)
Share based payment charges		(12,599)	(34,157)	(70,269)
Loss from operations		(140,284)	(230,202)	(455,479)
Finance income		667	1,755	2,768
Loss before taxation		(139,617)	(228,447)	(452,711)
Taxation		6,120	6,040	11,980
Loss and total comprehensive expense for the period		(133,497)	(222,407)	(440,731)
Attributable to:
Owners of the parent		(119,161)	(207,557)	(409,569)
Non-controlling interests		(14,336)	(14,850)	(31,162)
Loss and total comprehensive expense for the period		(133,497)	(222,407)	(440,731)
Loss per share to owners of the parent
Basic and diluted - pence	3	(0.01)	(0.01)	(0.03)

 

Consolidated statement of financial position	Unaudited	Unaudited	Audited
30 September 2016	30 September	30 September	31 March
	2016	2015	2016
	£	£	£
Assets
Current assets
Inventories	39,705	-	-
Trade and other receivables	102,836	78,654	49,561
Corporation tax asset	18,100	11,448	17,388
Cash and cash equivalents	243,178	350,178	189,636
Total current assets	403,819	440,280	256,585
Total assets	403,819	440,280	256,585
Liabilities
Current liabilities
Trade and other payables	(132,879)	(115,230)	(113,747)
Total current liabilities	(132,879)	(115,230)	(113,747)
Net current assets	270,940	325,050	142,838
Total liabilities	(132,879)	(115,230)	(113,747)
Total net assets	270,940	325,050	142,838
Capital and reserves attributable to
owners of the parent company
Share capital	1,750,818	1,647,068	1,647,068
Share premium reserve	16,648,471	16,503,221	16,503,221
Warrant reserve	26,200	26,200	26,200
Merger reserve	6,599,174	6,599,174	6,599,174
Retained earnings	(24,332,598)	(24,060,136)	(24,226,036)
	692,065	715,527	549,627
Non-controlling interest	(421,125)	(390,477)	(406,789)
Total equity	270,940	325,050	142,838

 

Consolidated statement of cash flows	Unaudited	Unaudited	Audited
30 September 2016	six months	six months	Year
	ended	ended	Ended
	30 September	30 September	31 March
	2016	2015	2016
	£	£	£
Cash flows from operating activities
Loss after tax	(133,497)	(222,407)	(440,731)
Net finance income	(667)	(1,755)	(2,768)
Taxation	(6,120)	(6,040)	(11,980)
Share-based payment charge	12,599	34,157	70,269
Changes in inventories	(39,705)	-	-
Changes in trade and other receivables	(53,232)	(25,336)	3,623
Changes in trade and other payables	19,132	1,149	(334)
Total cash outflow from operations	(201,490)	(220,232)	(381,921)
Tax credits received	5,408	15,822	15,822
Total cash outflow from operating activities	(196,082)	(204,410)	(366,099)
Cash flow from investing activities
Interest received	624	1,785	2,932
Total cash inflow from investing activities	624	1,785	2,932
Cash flow from financing activities
Proceeds from issue of share capital	249,000	267,400	267,400
Total cash inflow from financing activities	249,000	267,400	267,400
Net increase / (decrease) in cash and cash equivalents	53,542	64,775	(95,767)
Opening cash and cash equivalents	189,636	285,403	285,403
Closing cash and cash equivalents	243,178	350,178	189,636

 

Consolidated statement of changes in equity	Share	Share	Warrant	Merger	Retained	Total equity	Non-	Total
30 September 2016	capital	premium	reserve	reserve	earnings	attributable to owners of	controlling interests	equity
						the parent
	£	£	£	£	£	£	£	£
At 31 March 2015	1,584,846	16,298,043	26,200	6,599,174	(23,886,736)	621,527	(375,627)	245,900
Share-based charges	-	-	-	-	34,157	34,157	-	34,157
Issue of shares - PrimaryBid placing 9 July 2015	62,222	205,178	-	-	-	267,400	-	267,400
Total comprehensive expense for the period	-	-	-	-	(207,557)	(207,557)	(14,850)	(222,407)
At 30 September 2015	1,647,068	16,503,221	26,200	6,599,174	(24,060,136)	715,527	(390,477)	325,050
Share-based charges	-	-	-	-	36,112	36,112	-	36,112
Total comprehensive expense for the period	-	-	-	-	(202,012)	(202,012)	(16,312)	(218,324)
At 31 March 2016	1,647,068	16,503,221	26,200	6,599,174	(24,226,036)	549,627	(406,789)	142,838
Share-based charges	-	-	-	-	12,599	12,599	-	12,599
Issue of shares - placing 8 August 2016	93,333	130,667	-	-	-	224,000	-	224,000
Issue of shares - placing 22 September 2016	10,417	14,583	-	-	-	25,000	-	25,000
Total comprehensive expense for the period	-	-	-	-	(119,161)	(119,161)	(14,336)	(133,497)
At 30 September 2016	1,750,818	16,648,471	26,200	6,599,174	(24,332,598)	692,065	(421,125)	270,940

 

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 Prospect House, 58 Queens Road, Reading, Berkshire RG1 4RP, UK.

The main activities of the Group are those of developing and licensing the proprietary, scientifically-proven Fruitflow® 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 Moore Stephens LLP pursuant to guidance issued by the Auditing Practices Board.

The results for the year ended 31 March 2016 are not statutory accounts. The statutory accounts for the last year ended 31 March 2016 were approved by the Board on 7 September 2016 and are filed at Companies House. The report of the auditors on those accounts was unqualified, contained an emphasis of matter with respect to going concern, and did not contain a statement under section 498 of the Companies Act 2006.

The interim report for the six months ended 30 September 2016 can be downloaded from the Company's website www.provexis.com. Further copies of the interim report and copies of the 2016 annual report and accounts can be obtained by writing to the Company Secretary, Provexis plc, Prospect House, 58 Queens Road, Reading, Berkshire RG1 4RP, UK.

This announcement was approved by the Board of Provexis plc for release on 30 December 2016.

Going concern

The Group made a loss for the period from operations of £133,497 (2015: £222,407) and expects to make a further loss during the remainder of the year ending 31 March 2017. The total cash outflow from operations in the period was £201,490 (2015: £220,232).

For the year ended 31 March 2016 the Group made a loss from operations of £440,731 (2015: £487,753). The total cash outflow from operations in the year ended 31 March 2016 was £381,921 (2015: £404,776).

At 30 September 2016 the Group had cash balances of £243,178 (2015: £350,178).

On 4 June 2015 the Group announced that it had joined PrimaryBid.com (www.primarybid.com), an online platform dedicated to equity crowdfunding for AIM-listed companies.

On 29 June 2016 the Group announced the launch of a high quality dietary supplement product containing Fruitflow® and Omega-3 which is being sold initially from a separate, dedicated website www.fruitflowplus.com on a mail order basis. The new dietary supplement product is expected to provide the Group with an additional income and profit stream.

On 2 August 2016 the Group announced that it had raised proceeds of £224,000 via the placing of 93,333,340 new ordinary shares of 0.1p each at a gross 0.24p per share with investors. The placing shares were admitted to AIM on 8 August 2016.

On 15 September 2016, further to the Company's announcements of 9 June 2016, 29 June 2016, 2 August 2016 and 7 September 2016 the Group announced that it had raised proceeds of a further £25,000 via the placing of 10,416,667 new ordinary shares of 0.1p each at a gross 0.24p per share with the Company's Chairman Dawson Buck. The placing shares were admitted to AIM on 22 September 2016.

The directors have prepared projected cash flow information for a period of more than twelve months from the date of approval of these financial statements and have reviewed this information as at the date of these financial statements.

The Group is seeking to maximise the commercial returns that can be achieved from its Fruitflow® technology, and the Group's cost base and its resources continue to be very tightly managed.

The Group remains keen to minimise dilution to shareholders and it is focussed on moving into profitability as Fruitflow® revenues increase, but while the Group remains in a loss making position it will need to raise working capital on occasions.

The Group has access to future equity financings as potential additional sources of funding, primarily through the Group's existing PrimaryBid.com platform or by way of a separate equity fundraising with the Company's shareholders. Based on its current level of cash it is expected that the Group will need to raise further equity finance in the coming four months.

The Directors have concluded that the necessity to raise additional equity finance represents a material uncertainty that casts significant doubt upon the Group's ability to continue as a going concern and that should it be unable to raise further funds, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. However, considering the success of previous fundraisings and the current performance of the business, the Directors have a reasonable expectation of raising sufficient additional capital to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Group's financial statements.

Accounting policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2016, as described in those annual financial statements.

2. Segmental reporting

The Directors have determined that only one operating segment exists under the terms of International Financial Reporting Standard 8 'Operating Segments', as the Group is organised and operates as a single business unit.

 

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 118,617,620 share options in issue at 30 September 2016 (2015: 118,617,620) and 10,000,000 warrants (2015: 10,000,000) in issue 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
	2016	2015	2016
Loss for the period attributable to owners of the parent - £	(119,161)	(207,557)	(409,569)
Weighted average number of shares	1,674,554,508	1,613,066,952	1,630,067,560
Basic and diluted loss per share - pence	(0.01)	(0.01)	(0.03)

There have been no transactions involving ordinary shares between the reporting date and the date of approval of these financial statements which would significantly change the earnings per share calculations shown above.

4. Share capital

On 2 August 2016 the Group announced that it had raised proceeds of £224,000 via the placing of 93,333,340 new ordinary shares of 0.1p each at a gross 0.24p per share with investors. The placing shares were admitted to AIM on 8 August 2016.

On 15 September 2016 the Group announced that it had raised proceeds of a further £25,000 via the placing of 10,416,667 new ordinary shares of 0.1p each at a gross 0.24p per share with the Company's Chairman Dawson Buck. The placing shares were admitted to AIM on 22 September 2016.

At 30 December 2016, the date of this announcement, the Company's issued share capital comprises 1,750,818,174 ordinary shares with voting rights. The Company does not hold any shares in treasury.

5. Share options

On 30 December 2016 the Company granted a total of 20,000,000 new options over Ordinary Shares ('Options') under the Provexis 2005 share option scheme to certain scientific, sales and marketing consultants to the Company. The options have an exercise price of 0.92 pence, being the closing mid-market price on 29 December 2016. The Options are exercisable between 3 and 10 years from date of grant and are subject to performance criteria, including share price appreciation.

The Company believes the grant of these new Options will closely align the interests of the scientific, sales and marketing consultants to the Company with those of shareholders.

Following the issue of the new Options the total number of Ordinary Shares under option which could be issued if all of the performance criteria are met is 138,617,620 Ordinary Shares.

6. 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.

 

END

 

 

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