TIDMVENN
RNS Number : 5910Y
Venn Life Sciences Holdings PLC
10 May 2019
10 May 2019
Venn Life Sciences Holdings Plc
("Venn", "Venn Life Sciences" or the "Company")
Preliminary 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
unaudited results for the year ended 31 December 2018.
Financial Highlights
-- Total revenue was EUR14.6m (2017: EUR17.8m)
-- EBITDA Loss (before exceptional items) of EUR1.06m (2017: profit EUR0.96m)
-- Write down of EUR2.2m on the impairment of Intangible Assets
-- Loss for the year after tax of EUR4.5m (2017: EUR1.5m) after
a charge of EUR2.6m (2017: EUR1.7m) being investment write-down on
Integumen PLC (EUR0.4m) and impairment of intangible assets
(EUR2.2m)
-- Arrangement of EUR1.0 milion loan note in December to support
working capital and collaboration with Open Orphan
-- Cash and cash equivalents of EUR1.1m as at 31 December 2018 (2017: EUR1.2m)
Operational Highlights
-- Improved revenue mix with lower key client dependency
-- Maintanence 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 and profitability in the coming
months. However, the Company continues to require careful
management of available cash resources and the Directors expect
additional financial resource to be required in order for the
Company to successfully execute its growth strategy.
Commenting on the Group's results, Tony Richardson, CEO of Venn,
said:
"While the confidential nature of our business prevents us from
fully disclosing client and technology details, I am pleased to
communicate that we have played a pivotal role in the development
of a successful drug for the treatment of a rare medical condition.
This is the culmination of three years work and provides a critical
proof point regarding Venn's drug development capabilities. We have
significantly advanced our credentials as a drug development
partner and begin this year with greater credibility in the eyes of
current and prospective clients. We are committed to further
service and geographical expansion of our business in 2019 and
further to our collaboration announcement in December 2018 have
made significant strides in developing our platform offering for
Rare and Orphan drug developers"
Enquiries:
Venn Life Sciences Holdings Plc Tel: +353 (0)1 5499 341
Cathal Friel / Tony Richardson
Arden Partners (Nominated Adviser and Joint Broker) Tel: +44
(0)20 7614 5900
John Llewellyn-Lloyd / Ruari McGirr / Benjamin Cryer
Davy (Euronext Growth Adviser and Joint Broker) Tel: +353 (0)1
679 6363
Anthony Farrell (Corporate Finance) / Ivan Murphy
Camarco (Financial PR) Tel: +44 (0)20 3757 4980
Tom Huddart / Billy Clegg / Daniel Sherwen
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2018
2018 2017 2016
EUR'000 EUR'000 EUR'000
------------------------------------------------ --------- --------- ---------
Continuing operations
Revenue 14,185 17,405 17,909
Direct Project and Administrative Costs (16,552) (17,763) (18,805)
Other operating income 371 410 335
Operating (loss)/Profit (1,996) 52 (561)
--------- --------- ---------
Depreciation (95) (99) (133)
Amortisation (840) (792) (689)
Exceptional items (-) (25) (125)
EBITDA before exceptional items (1,061) 968 386
---------
Finance income 10 - 12
Finance costs - - -
Share of loss of investments accounted
for using the equity method (-) (874)
Impairment of fixed asset investments (421) (843) (364)
Impairment of Intangible Assets (2,232) -
------------------------------------------------ --------- --------- ---------
(Loss) before income tax (4,639) (1,665) (913)
Income tax credit 129 127 169
------------------------------------------------- --------- --------- ---------
(Loss) for the year from continuing operations (4,510) (1,538) (744)
------------------------------------------------- --------- --------- ---------
Discontinued operations
Profit for the year from discontinued
operations - - 1,295
------------------------------------------------- --------- --------- ---------
(Loss) for the year (4,510) (1,538) 551
------------------------------------------------- --------- --------- ---------
Loss for the year is attributable to:
Owners of the parent (4,510) (1,538) 532
Non-controlling interests - - 19
------------------------------------------------- --------- --------- ---------
(4,510) (1,538) 551
------------------------------------------------ --------- --------- ---------
Other comprehensive income
------------------------------------------------ --------- --------- ---------
Currency translation differences 85 (139) (36)
------------------------------------------------- --------- --------- ---------
Total comprehensive (loss) for the year (4,425) (1,677) 515
------------------------------------------------- --------- --------- ---------
Total comprehensive (loss) for the year
is attributable to:
Owners of the parent (4,425) (1,677) 496
Non-controlling interests - - 19
------------------------------------------------- --------- --------- ---------
(4,425) (1,677) 515
------------------------------------------------ --------- --------- ---------
Total comprehensive (loss) for the year
attributable to owners of the parent arises
from:
Continuing operations (4,425) (1,677) (799)
Discontinued operations - - 1,295
------------------------------------------------- --------- --------- ---------
(4,425) (1,677) 496
------------------------------------------------ --------- --------- ---------
Earnings per share from continuing and
discontinued operations attributable to
owners of the parent during the year
Basic (loss) per ordinary share
From continuing operations (6.77c) (2.78c) (1.26c)
From discontinued operations - - 2.14c
------------------------------------------------- --------- --------- ---------
From (loss) for the year (6.77c) (2.78c) 0.88c
------------------------------------------------- --------- --------- ---------
Diluted (loss) per ordinary share
From continuing operations (6.12c) (2.56c) (1.14)
From discontinued operations - - 1.93c
------------------------------------------------- --------- --------- ---------
From (loss) for the year (6.12c) (2.56c) 0.79c
------------------------------------------------- --------- --------- ---------
Consolidated and Company's Statement of Financial Position
As at 31 December 2018
Group Group
2018 2017 Restated
EUR'000 EUR'000
------------------------------- -------- --------------
Assets
Non-current assets
Property, plant and equipment 263 312
Intangible assets 996 4,034
Investments in subsidiaries - -
Assets held for sale 259 680
Investments 31 31
Total non-current assets 1,549 5,057
---------------------------------- -------- --------------
Current assets
Trade and other receivables 6,517 5,514
Income tax recoverable 57 107
Cash and cash equivalents 1,098 1,175
---------------------------------- -------- --------------
Total current assets 7,672 6,796
---------------------------------- -------- --------------
Total assets 9,221 11,853
---------------------------------- -------- --------------
Equity attributable to owners
Share capital 168 155
Share premium account 14,701 14,026
Group re-organisation reserve (541) (541)
Merger relief reserve - -
Reverse acquisition reserve 45 45
Other Reserve (34) -
Foreign currency reserves (41) (126)
Share option reserve - -
Retained earnings (9,674) (5,164)
---------------------------------- -------- --------------
4,624 8,395
Non-controlling interest - -
------------------------------- -------- --------------
Total equity 4,624 8,395
---------------------------------- -------- --------------
Liabilities
Non-current liabilities
Borrowings - -
Total non-current liabilities - -
------------------------------- -------- --------------
Current liabilities
Trade and other payables 3,786 2,999
Deferred taxation 342 434
Borrowings 469 25
Total current liabilities 4,597 3,458
---------------------------------- -------- --------------
Total liabilities 4,597 3,458
---------------------------------- -------- --------------
Total equity and liabilities 9,221 11,853
---------------------------------- -------- --------------
Consolidated and Company's Statement of Cash Flows
For the year ended 31 December 2018
Group Group
2018 2017
Notes EUR'000 EUR'000
Cash Flow from operating activities
Continuing operations
Cash used in operations (1,105) (1,285)
Income tax received/(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)
Refund of Escrow - -
Interest received 10 -
------------------------------------------------------- ------- -------- --------
Net cash used in investing activities (104) (985)
------------------------------------------------------------------ -------- --------
Cash flow from financing activities
Proceeds from issuance of ordinary shares 687 -
Proceeds from invoice discounting 469
Repayments on borrowings (25) (35)
Net cash generated by financing activities 1,132 (35)
------------------------------------------------------------------ -------- --------
Net increase/ (decrease) in cash and cash equivalents (77) (2,366)
Cash and cash equivalents at beginning of year 1,175 3,541
Exchange losses on cash and cash equivalents - -
------------------------------------------------------- ------- -------- --------
Cash and cash equivalents at end of year 1,098 1,175
------------------------------------------------------------------ -------- --------
Consolidated Statement of Changes in Shareholders' Equity
Re-organisation
& Reverse Share Foreign
Share Share acquisition & Option currency Retained Non-controlling
capital premium other reserve reserve reserve earnings Total interests Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
At 1 January
2017 155 14,026 (496) 28 13 (3,294) 10,432 - 10,432
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
Changes in
equity for the
year
ended 31
December 2017
(Loss) for the
year - - - - - (1,538) (1,538) - (1,538)
Currency
translation
differences - - - - (139) - (139) - (139)
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
Total
comprehensive
(loss) for
the year - - - - (139) (1,538) (1,677) (-) (1,677)
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
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
as previously
stated 155 14,026 (496) - (126) (4,804) 8,755 (-) 8,755
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
Prior year
adjustment - - - - - (360) (360) (-) (360)
At 31 December
2017
after prior
year
adjustment 155 14,026 (496) - (126) (5,164) 8,395 (-) 8,395
Changes in
equity for the
year
ended 31
December 2018
(Loss) for the
year - - - - - (4,510) (4,510) - (4,510)
Currency
translation
differences - - - - 85 - 85 - 85
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
Total
comprehensive
profit
/(loss) for
the year - - - - 85 (4,510) (4,425) - (4,425)
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
Transactions
with the
owners
Shares issued 13 675 - - - - 688 - 688
Purchase of
minority
Interest - - (34) - - - (34) - (34)
Total
contributions
by and
distributions
to owners 13 675 (34) - - - 654 - 654
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
At 31 December
2018 168 14,701 (530) - (41) (9,674) 4,624 - 4,624
--------------- --------- --------- ---------------- -------- ---------- ---------- ------------ ----------------- --------
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 1 Berkeley
Street, London, W1J 8DJ.
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.
Draft Audited
Year ended Year ended
31 December 31 December
2018 2017
EUR'000 EUR'000
Loss from continuing operations
attributable to equity holders
of the Company (EUR'000) (4,425) (1,677)
Total (4,425) (1,677)
------------------------------------------ ---- ------------ ------------
Weighted average number of Ordinary
Shares in issue 65,293,943 60,284,263
b) Diluted
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares.
Weighted average number of shares used as the denominator :
Draft Audited
Year ended Year ended
31 December 31 December
2018 2017
Weighted average number of Ordinary
Shares in issue 65,293,943 60,284,263
Adjustments for calculation of diluted
earnings per share:
Options 6,544,167 4,985,288
Warrants 418,749 166,666
----------------------------------------- ------------ ------------
Total 72,256,859 65,436,217
----------------------------------------- ------------ ------------
3. Prior Year adjustment
The adjustment of EUR360,000 to opening retained earnings
relates to year end 2016 and earlier periods and is made up of the
following two items:
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 EUR226,000 correction was required to
the year end 2016 retained earnings balance carried forward.
2. A consolidation adjustment was made in 2016 relating to
amount of EUR134,000 held in an Escrow account. This consolidation
adjustment should have been reversed in 2017 when the escrow
account was settled but was over-looked. Consequently, the 2016
retained earnings carried forward are now being corrected.
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END
FR LFFFVESIAIIA
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