Half-year Report

RNS Number : 4030N

Provexis PLC

29 January 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.

29 January 2021

Provexis plc

UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2020

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 2020.

Highlights

·Total revenue for the period of £237k, 7% ahead of the prior year (2019: £222k) and an all-time high in the first half of the year for the Fruitflow business.

·Planned launch by By-Health, a circa £4bn 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 has made a significant investment in nine separate studies in China, at its sole expense, in support of the Fruitflow based products which it plans to launch in China. Studies conducted in China are needed to obtain 'blue cap' health claim status for dietary supplements, as required by the Chinese State Administration for Market Regulation (SAMR).

·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 for Fruitflow. If a successful blue cap health claim is achieved it would be expected to result in some significant orders for Fruitflow, potentially at a multiple of Fruitflow's existing annual sales.

·Exclusive Distribution Agreement for Fruitflow+ Omega-3 in China through the Chinese Cross-Border e-commerce channel ('CBEC') secured in November 2020, first test order has been placed.

·Company and its commercial partner DSM have experienced increased consumer interest for Fruitflow in recent months in light of the COVID-19 pandemic, as consumers look to nutritional interventions to help them fortify the circulatory system against the effects of COVID-19.

·  Fruitflow recognised in a further three published scientific journals, 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.'

·£1.0 million placing completed in December 2019, significantly strengthening the Company's capital base and de-risking the business. The funds raised will provide the Company with additional working capital to support its international growth plans; a new production run for Fruitflow+ Omega-3 is now in the process of being commissioned.

·  Purchase of background and joint foreground Oslo blood pressure lowering IP in August 2020, for a total consideration of 11.5m new ordinary shares in Provexis, giving the Company full ownership of its four key patent families for Fruitflow.

·Underlying operating loss* reduced to £95k, 24% lower than the prior year (2019: £126k) and a record low for the Group in the first half of the year.

·Cash balance of £156k at 30 September 2020 (2019: £173k). The Company raised £1.0m from a placing in December 2020 with new and existing investors at 0.75p per new ordinary share.

*before share based payments of £107k (2019: £39k), as set out on the face of the Consolidated Statement of Comprehensive Income.

 

Provexis Chairman Dawson Buck and CEO Ian Ford commented:

'The Company is pleased to report on another strong period of progress.

The publication of two review articles for Fruitflow in recent months focussing on COVID-19, and the publication of a third article referencing Fruitflow, gut microbiota and their effects on hypertension and human blood platelet function, represent significant opportunities for the Company and DSM to promote Fruitflow further across scientific, trade customer and consumer channels.

The COVID-19 virus is having a significant adverse effect on circulation in many patients, and it is causing wider issues with inflammation. Fruitflow is a natural, breakthrough ingredient that helps with platelet aggregation, supporting normal blood flow and circulation. The Company and its commercial partner DSM have experienced increased consumer interest for Fruitflow in light of the pandemic, and are seeking to maximise the resulting commercial opportunities to the benefit of consumers worldwide.

The Company has developed a strong, long lasting and wide-ranging patent portfolio for Fruitflow, and it 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, and the Company was delighted to have secured outright ownership of the important blood pressure lowering patent family in August last year. A number of important patents have been secured for Fruitflow in recent months, as more fully detailed in this interim report.

The Fruitflow DSM Alliance has made a strong start to the second half of the 2020/21 financial year, with third  quarter revenues to 31 December 2020 expected to be well ahead of the comparative quarter in 2019/20.

The Company's Fruitflow+ Omega-3 dietary supplement business has seen continued growth in its subscriber base, with subscriber numbers on the www.fruitflowplus.com website now standing at a new all-time high level. The Company is seeking to expand its commercial activities with Fruitflow+ Omega-3, and a further new production run for Fruitflow+ Omega-3 capsules is in the process of being commissioned.

The Company's distribution agreement with a company which will act as the distributor for Fruitflow+ Omega-3 in China through the Chinese CBEC channel has made a good start, with a first test order now having been placed by the distributor and shipped to China.

The planned launch by By-Health, a circa £4bn listed Chinese dietary supplement business, of a number of Fruitflow based products in the Chinese market is progressing well with potential sales volumes remaining at a significant multiple of existing Fruitflow sales. The collaboration agreement which the Company has with By-Health, in support of By-Health's planned launch of Fruitflow based products in the Chinese market, further strengthens the close relationship between By-Health and Provexis.

The Board was delighted to announce a £1.0 million placing in December 2020, with the funds raised helping to provide the Company with additional working capital to support its international growth plans. The placing has significantly strengthened the Company's capital base and de-risked the business to the benefit of all shareholders.

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 Ian Ford, CEO Dawson Buck, Non-executive Chairman	Tel:  [phone]   [e-mail]
Allenby Capital Limited (Nominated Adviser and Broker) Nick Naylor / Liz Kirchner (Corporate Finance) Matt Butlin (Sales and Corporate Broking)	Tel:  [phone]

 

Chairman and CEO's statement

The Company has had a very active first six months of the year, seeking to enhance further the commercial prospects of its innovative, patented Fruitflow® heart-health ingredient.

The Company's Alliance partner DSM Nutritional Products ('DSM') has continued to develop the market for Fruitflow in all global markets. More than 90 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.

The Company and DSM have experienced increased consumer interest for Fruitflow in recent months in light of the COVID-19 pandemic, as consumers have looked to nutritional interventions to help them fortify the circulatory system against the effects of COVID-19. An increasing number of further commercial projects have been initiated with prospective customers, including some prospective customers which are part of global businesses.

The Company continues to work closely with DSM, seeking to support various prospective customers globally with their commercialisation plans for Fruitflow, 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.

Revenues for the half year were £237k (2019: £222k), an increase of 7% relative to the prior year.

Underlying operating loss for the half year was reduced to £95k, 24% lower than the prior year (2019: £126k) and a record low for the Group in the first half of the year.

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® 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 further 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.

The publication of these three review articles is a significant opportunity for the Company and DSM to promote Fruitflow further across scientific, trade customer and consumer channels.

By-Health Co., Ltd.

The Company has previously announced it was working with DSM and By-Health Co., Ltd. ('By-Health'), a listed Chinese dietary supplement business valued at approximately £4bn, to support the planned launch of a number of Fruitflow based products in the Chinese market.

The planned launch of a number of Fruitflow based products in the Chinese market, with potential volumes at a significant multiple of existing Fruitflow sales, is progressing well, with activities driven at present by the need to obtain 'blue cap' health claim status for Fruitflow as a dietary supplement with the State Administration for Market Regulation (SAMR), a new Chinese market regulator which has taken over the responsibilities of the former China Food and Drug Administration (CFDA).

Clinical studies conducted in China are typically required to obtain blue cap health claim status, and a significant investment in nine separate studies, in support of the Fruitflow based products which By-Health plans to launch in China, is being undertaken at By-Health's expense.

Five studies have been successfully completed in China, one clinical study and one animal study are currently ongoing and a further planned two human studies have recently been confirmed by By-Health. The COVID-19 pandemic has caused some delays to the ongoing and planned studies, with By-Health seeking to keep these delays to a minimum.

The five completed studies showed excellent results in use for Fruitflow, and they provide strong evidence for By-Health in its blue cap and other regulatory submissions to the SAMR for Fruitflow, supported by the Company's existing European Food Safety Authority ('EFSA') health claim for Fruitflow.

If a successful blue cap health claim is achieved for Fruitflow it would currently be expected to result in some significant orders for the product, potentially at a multiple of current total sales values. The Company will provide shareholders with as much information as it can on the timing of this highly commercially sensitive and potentially transformative process, subject to the multi-party confidentiality arrangements which surround the process.

There are more than 230m people in China who are currently 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 (source: World Health Organisation - Cardiovascular diseases, China). China is now the world's second-largest pharmaceuticals market, measured by how much patients and the state spend on drugs (source: health-care information company IQVIA). The Company believes that Fruitflow has the potential to play an important role in the Chinese cardiovascular health market.

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.

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 has been placed by the distributor and shipped to China.

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 blue cap health claim which By-Health is seeking to secure.

Fruitflow+ Omega-3 has a social media presence on Facebook www.facebook.com/FruitflowPlus, Instagram www.instagram.com/fruitflowplus and Twitter https://twitter.com/FruitflowPlus, and the Company was pleased to support Brentford FC in January 2021 as their Emirates FA Cup Fourth Round tie sleeve sponsor.

The Company believes that Fruitflow has an important role to play in women's cardiovascular health, and there is a dedicated section of its consumer website addressing this topic at www.fruitflowplus.com/womens-health.

A Fruitflow App is also being developed, primarily for use on mobile device platforms.

Further interest in the role of Fruitflow in exercise has been generated by pro cycling Team DSM (formerly Team Sunweb)'s use of Fruitflow in the Tour de France. The benefits that Fruitflow can provide for athletes in terms of improved recovery are set out in more detail on the website at www.fruitflowplus.com/sportrecovery.

The Company continues to work on a potential Fruitflow+ nitrates product which would be supported by the Company's strong patent position in this area, with the involvement now of third party manufacturers and with some interest already generated from brand owners. The product will have anti-inflammatory and circulation benefits for athletes seeking to recover after exercise, properties which would also be potentially beneficial to a wide range of other consumers to include people who are less active and people who suffering from the symptoms of basic ageing.

The Company's Fruitflow+ Omega-3 direct selling business has been operating largely as normal throughout the COVID-19 pandemic, and despite some initial delays in the supply chain a new production run of Fruitflow+ Omega-3 capsules was completed in July 2020 thus ensuring continued supply of the product. A further new production run for Fruitflow+ Omega-3 capsules is in the process of being commissioned.

Subscriber numbers on the www.fruitflowplus.com website have been growing steadily, and currently stand at a further new all-time high level.

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.

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:

Patent family	Developments in the period from Sep-20 to Jan-21
Improved Fruitflow / Fruit Extracts Improved Fruitflow / Fruit Extracts, with patents granted by the European Patent Office in January 2017 and September 2020. The patent has been granted in eight other major territories to include China; patent applications are proceeding to grant in the US and two further territories; and applications are at a late stage of progression in a further six global territories, with potential patent protection out to November 2029.	A second European patent has been secured (previously referred to as proceeding to grant) and national protection has been secured in major European states. Patent applications are proceeding to grant in the US, South Korea and Hong Kong.
Antihypertensive (blood pressure lowering) effects This patent was originally developed in collaboration with the University of Oslo, and it has now been granted for Fruitflow in Europe, the US and two other major territories. Patent applications are being progressed in a further five 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.	US patent protection has been secured for Fruitflow as an antihypertensive (blood pressure lowering) agent.
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, the Philippines, New Zealand and Japan. Applications have been accepted for grant in Japan (a further patent), South Korea, Israel and Hong Kong, and further patent protection is being sought in seven territories, with potential patent protection out to December 2033.	Patents have been secured (previously referred to as proceeding to grant) in the US and also Europe, with national protection also secured in major European states. Patent protection has also been secured in Brazil and patent applications are now also proceeding to grant in Japan, South Korea, Israel and Hong Kong.
Fruitflow for air pollution The use of Fruitflow in protecting against the adverse effects of air pollution on the body's cardiovascular system. Recent 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 application has proceeded to grant and there are pending applications in 16 jurisdictions (including the US where a further application has been filed) which extends potential patent protection for Fruitflow out to November 2037.	US patent protection has been secured covering the use of Fruitflow in protecting subjects who have certain medical conditions and who have been exposed to air pollution.

Research and development costs for the half year were £135k (2019: £134k), reflecting continued investment in the Company's extensive intellectual property portfolio for Fruitflow, which is of fundamental importance to the Company and its current and future commercial partners.

Capital structure and funding

On 17 December 2020 the Group announced it had raised proceeds of £1.0 million via the placing of 133,333,349 ordinary shares of 0.1p each at a gross 0.75p per share with investors, with no commissions payable. The placing shares were admitted to trading on AIM on 23 December 2020.

Outlook

The Company is pleased to report on another strong period of progress.

The publication of two review articles for Fruitflow in recent months focussing on COVID-19, and the publication of a third article referencing Fruitflow, gut microbiota and their effects on hypertension and human blood platelet function, represent significant opportunities for the Company and DSM to promote Fruitflow further across scientific, trade customer and consumer channels.

The COVID-19 virus is having a significant adverse effect on circulation in many patients, and it is causing wider issues with inflammation. Fruitflow is a natural, breakthrough ingredient that helps with platelet aggregation, supporting normal blood flow and circulation. The Company and its commercial partner DSM have experienced increased consumer interest for Fruitflow in light of the pandemic, and are seeking to maximise the resulting commercial opportunities to the benefit of consumers worldwide.

The Company has developed a strong, long lasting and wide-ranging patent portfolio for Fruitflow, and it 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, and the Company was delighted to have secured outright ownership of the important blood pressure lowering patent family in August last year. A number of important patents have been secured for Fruitflow in recent months, as more fully detailed in this interim report.

The Fruitflow DSM Alliance has made a strong start to the second half of the 2020/21 financial year, with third  quarter revenues to 31 December 2020 expected to be well ahead of the comparative quarter in 2019/20.

The Company's Fruitflow+ Omega-3 dietary supplement business has seen continued growth in its subscriber base, with subscriber numbers on the www.fruitflowplus.com website now standing at a new all-time high level. The Company is seeking to expand its commercial activities with Fruitflow+ Omega-3, and a further new production run for Fruitflow+ Omega-3 capsules is in the process of being commissioned.

The Company's distribution agreement with a company which will act as the distributor for Fruitflow+ Omega-3 in China through the Chinese CBEC channel has made a good start, with a first test order now having been placed by the distributor and shipped to China.

The planned launch by By-Health, a circa £4bn listed Chinese dietary supplement business, of a number of Fruitflow based products in the Chinese market is progressing well with potential sales volumes remaining at a significant multiple of existing Fruitflow sales. The collaboration agreement which the Company has with By-Health, in support of By-Health's planned launch of Fruitflow based products in the Chinese market, further strengthens the close relationship between By-Health and Provexis.

The Board was delighted to announce a £1.0 million placing in December 2020, with the funds raised helping to provide the Company with additional working capital to support its international growth plans. The placing has significantly strengthened the Company's capital base and de-risked the business to the benefit of all shareholders.

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 2020		six months	six months	year
		ended	ended	ended
		30 September	30 September	31 March
		2020	2019	2020
		£	£	£
	Notes
Revenue		237,075	222,262	347,937
Cost of goods		(20,728)	(19,733)	(35,782)
Gross profit		216,347	202,529	312,155
Selling and distribution costs		(22,956)	(19,527)	(40,656)
Research and development costs		(135,171)	(134,078)	(251,865)
Administrative costs (including share based payment charges)		(262,104)	(223,377)	(455,948)
R&D tax relief: receivable tax credit		1,590	8,900	11,502
Underlying operating loss		(95,480)	(126,155)	(320,888)
Share based payment charges - share options		(28,039)	(39,398)	(103,924)
Share based payment charges - blood pressure IP		(78,775)	-	-
Loss from operations		(202,294)	(165,553)	(424,812)
Finance income		87	155	347
Loss before taxation		(202,207)	(165,398)	(424,465)
Taxation		-	-	-
Loss and total comprehensive expense for the period		(202,207)	(165,398)	(424,465)
Attributable to:
Owners of the parent		(187,832)	(150,884)	(406,229)
Non-controlling interests		(14,375)	(14,514)	(18,236)
Loss and total comprehensive expense for the period		(202,207)	(165,398)	(424,465)
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 2020		30 September	30 September	31 March
		2020	2019	2020
	Notes	£	£	£
Assets
Current assets
Inventories		80,997	26,132	10,084
Trade and other receivables		142,177	147,327	139,637
Corporation tax asset		13,090	25,100	27,702
Cash and cash equivalents		156,272	173,263	291,335
Total current assets		392,536	371,822	468,758
Total assets		392,536	371,822	468,758
Liabilities
Current liabilities
Trade and other payables		(169,248)	(158,934)	(150,077)
Total current liabilities		(169,248)	(158,934)	(150,077)
Net current assets		223,288	212,888	318,681
Total liabilities		(169,248)	(158,934)	(150,077)
Total net assets		223,288	212,888	318,681
Capital and reserves attributable to
owners of the parent company
Share capital		2,070,822	1,983,988	2,059,322
Share premium reserve		17,767,071	17,474,796	17,699,796
Merger reserve		6,599,174	6,599,174	6,599,174
Retained earnings		(25,703,718)	(25,353,106)	(25,543,925)
		733,349	704,852	814,367
Non-controlling interest		(510,061)	(491,964)	(495,686)
Total equity		223,288	212,888	318,681

 

Consolidated statement of cash flows	Unaudited	Unaudited	Audited
30 September 2020	six months	six months	year
	ended	ended	Ended
	30 September	30 September	31 March
	2020	2019	2020
	£	£	£
Cash flows from operating activities
Loss after tax	(202,207)	(165,398)	(424,465)
Adjustments for:
Finance income	(87)	(155)	(347)
Tax credit receivable	(1,590)	(8,900)	(11,502)
Share-based payment charge	106,814	39,398	103,924
Changes in inventories	(70,913)	19,734	35,782
Changes in trade and other receivables	(2,459)	(87,585)	(80,086)
Changes in trade and other payables	19,171	35,791	26,934
Net cash flow from operations	(151,271)	(167,115)	(349,760)
Tax credits received	16,202	14,720	14,720
Total cash flow from operating activities	(135,069)	(152,395)	(335,040)
Cash flow from investing activities
Interest received	6	16	399
Total cash flow from investing activities	6	16	399
Cash flow from financing activities
Proceeds from issue of share capital	-	-	300,334
Total cash flow from financing activities	-	-	300,334
Net change in cash and cash equivalents	(135,063)	(152,379)	(34,307)
Opening cash and cash equivalents	291,335	325,642	325,642
Closing cash and cash equivalents	156,272	173,263	291,335

 

Consolidated statement of changes in equity	Share	Share	Merger	Retained	Total equity	Non-	Total
30 September 2020	capital	premium	reserve	earnings	attributable to owners of	controlling interests	equity
					the parent
	£	£	£	£	£	£	£
At 31 March 2019	1,983,988	17,474,796	6,599,174	(25,241,620)	816,338	(477,450)	338,888
Share-based charges	-	-	-	39,398	39,398	-	39,398
Total comprehensive expense for the period	-	-	-	(150,884)	(150,884)	(14,514)	(165,398)
At 30 September 2019	1,983,988	17,474,796	6,599,174	(25,353,106)	704,852	(491,964)	212,888
Share-based charges	-	-	-	64,526	64,526	-	64,526
Issue of shares - placing 17 December 2019	75,334	225,000	-	-	300,334	-	300,334
Total comprehensive expense for the period	-	-	-	(255,345)	(255,345)	(3,722)	(259,067)
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

 

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® 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 2020 are not statutory accounts. The statutory accounts for the last year ended 31 March 2020 were approved by the Board on 29 September 2020 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 2020 can be downloaded from the Company's website www.provexis.com. Further copies of the interim report and copies of the 2020 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 29 January 2021.

Going concern

The Directors are of the opinion that at 29 January 2021, the Group and Company's liquidity and capital resources are adequate to deliver the current strategic objectives and 2021 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 2020, 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
	2020	2019	2020
DSM Alliance Agreement	171,976	162,448	232,667
Fruitflow+ Omega-3	56,753	59,814	115,270
Fruitflow+ nitrates - in development	8,346	-	-
	237,075	222,262	347,937

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 193,500,000 share options in issue at 30 September 2020 (2019: 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
	2020	2019	2020
Loss for the period attributable to owners of the parent - £	187,832	150,884	406,229
Weighted average number of shares	2,061,960,851	1,983,988,174	2,005,600,196
Basic and diluted loss per share - pence	0.01	0.01	0.02

On 17 December 2020 the Group announced it had raised proceeds of £1.0 million via the placing of 133,333,349 ordinary shares of 0.1p each at a gross 0.75p per share with investors, with no commissions payable. The placing shares were admitted to trading on AIM on 23 December 2020. The new shares issued would change the weighted average number of shares in issue as shown above for the period ended 30 September 2020, but they would not significantly change the resulting loss per share calculations.

 

4. Share capital and Total Voting Rights

At 29 January 2021, the date of this announcement, the Company's issued share capital comprises 2,204,154,856 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 2,204,154,856.

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.

 

END

 

 

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