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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Innovaderma Plc | LSE:IDP | London | Ordinary Share | GB00BT9PTW34 | ORD EUR0.10 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 29.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMIDP
RNS Number : 3936W
InnovaDerma PLC
09 February 2017
Hot Features
Premium
InnovaDerma PLC
("InnovaDerma", the "Company" or the "Group")
Unaudited Half Year Results for the six months ended
31 December 2016
InnovaDerma (LSE: IDP), a UK developer of 'at-home'
and clinically proven treatments for hair loss,
hair care, self-tanning and skin rejuvenation, is
pleased to announce its unaudited half year results
for the period ended 31 December 2016.
The Company undertook a number of strategic actions
in the first half of the year to ensure the business
has a solid foundation for long-term growth and
infrastructure in place to enable it to scale up
effectively. These actions have begun to have a
positive financial impact, with January 2017 delivering
the highest monthly revenue ever recorded. This,
together with the seasonality of the business being
second-half weighted, means the Board is confident
of delivering a robust second half of the year.
Financial and Operational Highlights:
* Group revenue grew strongly by 125.5% to GBP3.187m
(HY2015: GBP1.414m) driven by the successful
penetration of the UK market through Superdrug and
Direct To Consumer ('DTC') sales (1)
* Gross profit increased significantly by 131% to
GBP1.837m (HY2015: GBP0.795m)
* Loss before tax of GBP0.154m (HY2015: GBP0.004m) as a
result of one-off exceptional listing costs and
strategic initiatives to expand and scale the
business
* Strategic decision to move production to the UK from
Australia to improve supply chain and operating
margins now fully implemented
* Strengthened team to drive and support international
growth in the UK, US and Australia
* Superdrug has increased shelf space for Skinny Tan on
average by a factor of four since January 2016 which
has increased its visibility in their stores and
enhanced the performance of the UK business
* Entered the US market and secured retail and e-tailer
distribution deals
* Two successful fundraising and placings raising a
total of GBP1.340m to support growth in the UK,
European and US markets and ensure adequate levels of
stock to meet growing demand
* At 31 December 2016, the Group carried a cash balance
of GBP0.701m against an opening balance of GBP0.115m
* Skinny Tan brand extended to 33 products (FY2016: 25)
to take advantage of the brand's growing popularity
* As at 31 December 2016, the Company had circa 3,360
retail points (FY2016: 2,500) and distribution in 9
countries including Skinny Tan and Leimo products
* Growing DTC platform driving financial performance,
attracting new customers and removing over-reliance
on retail chains for growth
(1 The Company recorded higher sales than indicated
in the trading statement announced on 16 January
2017 as a result of the change from reporting in
Australian Dollars to Pound Sterling, currency translations,
in addition to higher sales.)
Post Period End and Outlook
* Very strong start to the second half of the year with
January 2017 delivering the highest ever monthly
sales in what is considered to be the slowest month
in the self-tanning industry
* Manufacturing move to UK resulted in significant
availability of inventory to service orders from both
retail and DTC channels
* US performing in line with expectations after
launching in November 2016 with the Group securing
opening orders for Skinny Tan from Harmon Retail
Chain (a subsidiary of Bed Bath and Beyond).
* Opening order for the Professional Salon Range of
Skinny Tan in the US through Artisan Tan was achieved
in January
* A high degree of focus on product and inventory
planning to cater for significant & consistent demand
in the Skinny Tan Professional Salon Range in all
regions
* New products developed in the haircare category to
complement and expand our current product depth
* Development of a new self-tanning brand consisting of
a range of products with a unique sales proposition
for the multi-national grocery and mass market
retailer channels. The product range is aimed at the
more price conscious consumer and is expected to be
launched in 2017 throughout multiple markets globally
* Leimo Headmaster project continues on track with FDA
approval expected in the middle of the year and
product launch towards the end of 2017
* Revenue and profit expected to grow in the second
half driven by the above-mentioned strategic
initiatives undertaken in 2016, the fast-growing DTC
platform and expansion in the UK, Europe and US
Haris Chaudhry, Executive Chairman said
"The Board undertook a number of strategic actions
to ensure the business has a strong platform for
significant growth in 2017 and beyond and these
initiatives have already begun to bear fruit. Our
fast growing product portfolio, vastly improved
supply chain, improving margins with the relocation
of manufacturing to the UK, and recent addition
of highly talented and experienced senior management
team for key markets, are expected to deliver measurable,
sustainable and marked improvements across the business.
"I am pleased with the sound structural changes
made in the first half which has contributed to
a strong start to the second half. We are confident
in our immediate and long term prospects and of
emerging as a fast-growing international business
with a diverse portfolio in the beauty, cosmetics
and personal care space."
This announcement contains inside information for
the purposes of Article 7 of EU Regulation 596/2014
Enquiries:
InnovaDerma
Haris Chaudhry/Joe Bayer +61 (0)3 9111 0071
--------------------------- ----------------------
Sole broker
Hybridan LLP
Claire Noyce +44 (0)203 764 2341
--------------------------- ----------------------
Cardew Group
Shan Shan Willenbrock
David Roach
Emma Ruttle + 44 (0)20 7930 0777
--------------------------- ----------------------
About InnovaDerma:
InnovaDerma PLC (LSE: IDP) specializes in the research,
manufacture and marketing of clinically proven products
in hair loss, anti-ageing and beauty sectors. InnovaDerma
has presence in the UK, US, Australia, New Zealand,
Philippines, South Africa, Hong Kong and South Korea.
www.innovaderma.com
Executive Chairman's Review
Introduction
I am pleased to present our half year results for
the period ended 31 December 2016. This has been
a period of considerable progress for the Company
and we have taken the necessary strategic actions
to ensure we have strong foundations for long-term
growth and the capability of expanding our product
portfolio, scaling the business and improving our
supply chain and gross margins. Group revenues grew
strongly to GBP3.187m representing an increase of
125.5% driven by the growth of Skinny Tan in the
UK and Direct to Consumer ('DTC') sales. The Group
reported a loss before tax of GBP0.154m (HY2015:
GBP0.0367m) as a result of one-off exceptional listing
costs and strategic initiatives which were critical
to the future growth of the business.
Improved supply chain and cost savings
We relocated a significant part of the Company's
manufacturing to the UK and production began in
December 2016 with the first major order under the
new arrangement delivered on budget and ahead of
schedule. The production move has improved the Company's
supply chain to its most important growth markets
and key customers and, as previously indicated in
our announcement on 24 October 2016, the cost savings
associated with this move have begun to have a positive
impact since the commencement of the second half
of our financial year. Furthermore, the Company
has undertaken a careful assessment of its cost
base across all operations and successfully transitioned
its logistics to more efficient models in the UK
and the US in November and December 2016. This is
expected to deliver significant additional savings
in our shipments to end users. Further reduction
of costs and improvement in service levels with
multiple service providers implemented in December
will have a positive impact on our gross margins.
UK market
The UK market delivered an excellent performance
through both Superdrug and DTC, the latter becoming
an important and growing sales channel. Skinny Tan
is ranged throughout all of Superdrug's outlets
nationwide and as a result of its positive performance,
shelf space in their stores has increased on average
by a factor of four, compared with the average shelf
space for our products in 2016. This has enhanced
Skinny Tan's visibility and revenue growth. In DTC,
customers' orders averaging 10,000+ per month are
fulfilled through Skinny Tan's website. To support
the growth of our UK and European business we appointed
Michael Hume, formerly Senior Buyer for Skincare
at Superdrug, as the Company's General Manager for
the UK and Europe.
US expansion
InnovaDerma entered the US market in October 2016,
began generating revenues in November 2016, and
I am pleased to report is making good progress with
Skinny Tan and performing in line with the Board's
expectations. The Company has a retail distribution
agreement with GNC Holdings, Inc. ("GNC"), a leading
global speciality retailer of health and wellness
products listed on the New York Stock Exchange.
Skinny Tan is also distributed through Quidsi, Inc.
a subsidiary of Amazon.com, Inc. Skinny Tan can
be purchased on Soap.com, a retail site owned by
Quidsi, its parent company, and Jet.com, a subsidiary
of Wal-Mart Stores, Inc. Post period end, we secured
opening orders for Skinny Tan from Harmon Retail
Chain (a subsidiary of Bed Bath and Beyond). The
Company also secured an opening order for our Skinny
Tan Professional Range with Artisan Tan located
on the West Coast of the US. To support our growth
plans in the US, the Company has established Innova
Science, Inc., a wholly-owned subsidiary of the
Group, and appointed Joseph Panetta as Executive
Vice President and President of Skincare to lead
the American business.
Asia
Skinny Tan is currently sold in Olive Young's stores
nationwide and is distributed through PROS Korea,
a distributor for InnovaDerma products for North
East Asia. Olive Young is planning an in-store marketing
campaign for Skinny Tan to coincide with its peak
season in 2017. As announced on 27 January 2017,
the Company is in discussions with PROS Korea to
address distribution of the Company's products in
China, Russia and Japan.
Product innovation
The production move to the UK has enabled InnovaDerma
to work efficiently with the product development
and formulations teams at Prestige Personal Care
Ltd (HMC Health & Beauty), our manufacturing partner
in expanding the product portfolio including products
outside of our self-tanning category. In the period
under review we have made significant progress with
creating a portfolio of potential new brands and
product extensions of existing brands, some of which
will make their debut in the second half of the
financial year. In the first half, we launched eight
new Skinny Tan extensions. The Company aims to be
at the forefront of the latest trends in self-tanning,
product innovation and effective formulations with
attractive packaging and being responsive to retail
and consumer demands to satisfy the increasing shelf
space at Superdrug and growing its DTC client base.
Product innovation is a key driver of our business
and important to growth. Our new key products are:
* Skinny Tan Professional: The professional spray
tanning market is a lucrative, captive and highly
brand-loyal market with thousands of beauty and
tanning salons within the UK alone. The Company has
developed a training manual, marketing strategy, and
product portfolio. The training manual will enable
therapists and tanners to become licensed
professional spray tanners. The Company has secured
some opening orders and is working towards capturing
and capitalising on this potentially highly
attractive opportunity in the UK and the US
* Lower priced tanning brand: The Company has developed
a lower price, high volume self-tanning range of
products with a unique appeal to the multinational
grocery and mass market retailer channel. These new
tanning products were developed for the more price
conscious consumer and will be for retail channels.
The range of new self-tanning products is expected to
be launched in 2017
* Leimo: The development of the Headmaster product
remains on track for a late 2017 launch. The FDA
approvals are expected in the middle of the year and
product prototypes have already been developed and
undergone preliminary testing in readiness for FDA
submission
The Market
There is a growing global trend of clients gradually
moving away from traditional bricks and mortar retail
with the rising popularity of digital marketing
strategies through social media, direct fulfilment
through Amazon, and scalability of revenue without
necessarily relying on a retail footprint. The Company
is well prepared through a two-way integrated growth
model in first creating significant demand for its
product through a differentiated digital direct
strategy followed by extension into retail space.
As it develops new product lines and enters new
markets, it aims to replicate this strategy successfully
across the markets it is operating in and planning
to enter throughout 2017.
Strategy
Our objective is to become a leading business behind
strong innovative brands so we are able to deliver
revenue and profitable growth. The Company will
focus on growing the business in a strong yet sustainable
manner now that it is on a solid footing having
implemented structural changes. The key pillars
of the Company's strategy are:
* Expand its product portfolio outside of self-tanning
- The Company has been continuously researching the
markets on both the supply and demand side to build
further on its product portfolio which is
complementary to its DTC and retail distribution. New
products containing highly effective formulations,
attractive packaging and value proposition for hair
care and skin brightening range are expected to be
launched in 2017 and the Company has already received
strong interest from high street retailers in ranging
those products once ready
* Build on DTC platform - In order to attract new
clients, increase revenues and improve optimization
of its DTC marketing spend in the UK, USA, and
Australia. The Board believes that the DTC platform
remains the most leveraged channel to the Company's
direct social media campaigns. In a short period of
19 months, the Company has acquired in excess of
280,000 online community base/ fans on Facebook,
22,000 on Instagram and its direct client base of
over 120,000 across the UK, Australia, New Zealand,
Spain, South Africa, USA and Korea, and this
continues to grow on a daily basis. This successful
digital direct strategy de-risks and delineates the
business model, reduces the reliance on retail chains
for growth, gives it improved ownership of the client
base and negates the need to spend marketing dollars
to on-sell and cross-sell. It also enhances cash flow
with all revenues realised within hours of ordering
and before the products are shipped (versus 60-120
days for retail payments) as well as creating
real-time market intelligence to optimise the
development of promotional activities and new product
portfolios. Furthermore, this strategy has resulted
in the Company creating significant footfall into
retailers through creating immediate consumer demand
* Extend the Skinny Tan brand to leverage customer and
brand loyalty - Skinny Tan Professional Range and
lower priced tanning products
* Seek value added acquisition targets to integrate
into the business - the Company remains on the
lookout for acquisition targets with a ready to
market and complementary products portfolio in the
beauty and life science space that it believes will
offer significant upside to its revenue and earnings
Outlook
The Company has delivered a strong start to the
second half of the year, with January 2017 achieving
the highest monthly revenue ever recorded. As a
business which is weighted towards the second half,
together with the critical steps undertaken in the
first half, this means the Board is confident of
delivering a robust second half.
Our long-term strategic objective is to establish
ourselves as a business offering strong innovative
and diverse brands across personal care for men
and women. The successful manufacturing move to
the UK and disciplined expansion plans focussed
on keeping its cost base at a minimum whilst scaling
revenues and entering new markets with existing
and new product portfolios. This is being achieved
through its successful digital direct consumer acquisition
strategy and expanding retail and professional channels
which are expected to deliver strong yet sustainable
growth in years to come.
The Company places great emphasis on product development
but is mindful of large investment costs which would
be unsuitable to a business of its size and scale.
New product development projects over the last 12
months have been through a disciplined and careful
plan, and in close consultation with its key distributors,
retail, and industry experts to ensure that products
are well-positioned to generate revenues immediately
through our DTC strategy and retail channels.
The trading terms with Prestige Personal Care Ltd
(HMC Health & Beauty) additionally allow significant
flexibility in both the quantum of the Company's
orders and timing of payments. It therefore places
the Company in excellent shape to maintain its healthy
cash flow as it continues its growth throughout
2017.
The Board is pleased with the current direction
of the business and confident of delivering further
growth during the remainder of the year.
Financial Performance
Group revenue increased by 125.4% to GBP3.187m (HY2015:
GBP1.414m). The results were driven by the consolidation
of the Superdrug account from the commencement of
business in February 2016 and strong Direct to Consumer
('DTC') sales in the UK. The US business began to
deliver a steady revenue stream from November 2016.
The Australian retail orders were unexpectedly slow
with major retailers still carrying stock from the
last financial year.
Gross margins remained steady at 57.6% with a small
increase on the previous comparable period of 56.2%
and slightly up on the previous full financial year
of 57.4%. The reported gross margin incorporates
the additional freight costs for product shipped
ex our Australian manufacturers into the UK warehouse
to provide for the UK manufacturing transition strategy.
After allowing for these "one off" costs, gross
margins would improve to 60.5%.
Overall expenses were significantly higher, increasing
from GBP0.791m to GBP1.991m. Marketing expenses
were GBP0.751m higher than the previous comparable
period due to a significant increase in activity
with Superdrug higher DTC marketing costs and US
market establishment costs. The US establishment
costs of GBP0.123m, while expensed in the reported
period, are shown below as a "one-off" cost as the
business moved to revenue generation in November.
Administrative Expenses of GBP0.399m was an increase
of GBP0.161m over the previous comparable period.
However, one off listing costs represented GBP0.074m
of this cost with recurring listing costs of GBP0.035
expensed during the reported period. Administration
and Employee costs, including listing costs, decreased
as a percentage of revenue to 28.0% in the reported
period as against 31.6% for the prior comparable
period.
The loss before tax was reported at GBP0.154m with
loss after tax and other income reported as GBP0.158m
against a profit after tax for the comparable period
of GBP0.009m. As reported in our trading update
on 16 January 2017, we advised that there was significant
corporate activity and strategic initiatives undertaken.
These costs have been absorbed in our results. However,
the table below highlights an underlying trading
profit of GBP0.129m against a comparable period
of GBP0.009m.
GBP GBP
------------------------ -------- -----------
Reported Comprehensive
Loss (158,129)
------------------------ -------- -----------
Add Back "one
off period costs"
------------------------ -------- -----------
Listing and associated
costs 73,886
------------------------ -------- -----------
International
freight costs
associated with
UK manufacturing
transition 90,481
------------------------ -------- -----------
US establishment
costs 122,978 287,345
------------------------ -------- -----------
"Normalised"
Profit 129,216
------------------------ -------- -----------
Taxation
The Group has used the reported results to estimate
the tax expense which has been reflected in the
Consolidated Statement of Profit and Loss. The Group
carries a Deferred Tax asset which has been calculated
to reflect movements in the income tax expense.
Cash and net debt
The Group carried a cash balance of GBP0.701m at
the end of the reported period as against an opening
balance of GBP0.115m. Capital raising activities
undertaken in November and December realised a net
cash inflow of GBP1.256m and a large part of which
was used to undertake a major inventory build program
during the last three months of the reported and
to facilitate the transition to UK manufacturing.
The Group carries no external debt whilst the balance
of convertible notes issued to original Skinny Tan
shareholders and related party loans reduced from
GBP0.599m to GBP0.507m.
Dividends
The board has elected not to declare a dividend
at this time.
Haris Chaudhry
Executive Chairman 8th February 2017
Responsibility statement
The names and functions of the Directors of the
Company are as follows:
Haris Chaudhry Executive Chairman
Joseph Bayer Executive Director
Rodney Turner Non-executive Director
Clifford Giles Non-executive Director
Kieran Callan Non-executive Director (Appointed
8 February 2017)
Garry Lemair Non-executive Director (Resigned 10
January 2017)
The Board confirms that to the best of its knowledge
the condensed set of financial statements gives
a true and fair view of the assets and liabilities,
financial position and profit of the Group and has
been prepared in accordance with IAS 34 'Interim
Financial Reporting', as adopted by the European
Union and that the interim management report includes
a fair review of the information required by the
Disclosure and Transparency Rules as issued by the
Financial Conduct Authority, namely:
-- DTR 4.2.7: An indication of important events
that have occurred during the first six months of
the financial year, and their impact on the condensed
set of financial statements, and a description of
the principal risks and uncertainties for the remaining
six months of the financial year.
-- DTR 4.2.8: Details of related party transactions
that have taken place in the first six months of
the current financial year and that have materially
affected the financial position or performance of
the enterprise during that period. Together with
any changes in the related parties transactions
described in the last annual report that could have
a material effect on the enterprise in the first
six months of the current financial year.
By order of the Board
Joe Bayer
Executive/Finance Director 9(th) February 2017
Principal risks and uncertainties
Risks
The Board regularly monitors exposure to key risks,
such as those related to manufacturing of the product,
cash position and competitive position relating
to sales. It has also taken account of the economic
situation over the past 12 months, and the impact
that has had on costs and consumer purchases.
The principal risks the Company faces relate to
a) the regulatory requirements in each country to
which it exports and b) cash flow. If those regulations
change, the company will need to quickly adapt its
strategy to ensure compliance and facilitate continuing
sales. At this stage, because Australia operates
very stringent policies on all products, the company
does not view this as very likely to occur but have
nonetheless recognized the potential risk.
Cashflow is another principal risk as, while the
Company is in its growth phase, working capital
is under demand to fund the purchase and manufacture
of stock in concert with trading terms to retail
buyers. The Group has alleviated this risk with
recent capital raisings and stands well prepared
to meet the requirements of it growth plans.
Capital structure
As at the 31 December, the ordinary share capital
of InnovaDerma PLC consisted of 11,844,236 shares,
valued at EUR0.10 each. During the reported period
the Group acquire a holding of 9% of the shares
of it's subsidiary Skinny Tan Pty Ltd from a founding
shareholder. This takes the holding in that entity
from 80% to 89%.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE 6 MONTHS YEARED
31(st) DECEMBER 2016 - Unaudited
Half year Half year
ended ended
31 December 31 December
2016 2015
Revenue GBP3,187,459 GBP1,413,779
Cost of sales GBP1,350,547 GBP619,177
------------- -------------
Gross profit GBP1,836,912 GBP794,602
Other income - -
Marketing expenses GBP1,095,175 GBP343,528
Administrative expenses GBP399,113 GBP237,641
Wages and salaries GBP496,305 GBP209,761
Operating profit/(loss) -GBP153,681 GBP3,672
Profit/(loss) before tax -GBP153,681 GBP3,672
Tax expense -GBP531
Net profit/(loss) for the -GBP154,212 GBP3,672
period
Other comprehensive income/(loss) -GBP3,917 GBP5,255
------------- -------------
Total comprehensive income/ -GBP158,129 GBP8,927
(loss) for the period
Attributable to:
Owners of the parent -GBP160,136
Non-controlling interests GBP2,007
------------- -------------
-GBP158,129 GBP0
Basic & diluted profit/(loss) 2 GBP0 GBP0
per share
------------- -------------
Earnings per share
Note 31 Dec 31 Dec 30 Jun16
16 15
-------- ----- -------- -------- ---------
Basic 2 GBP0.00 GBP0.00 GBP0.02
-------- ----- -------- -------- ---------
Diluted 2 GBP0.00 GBP0.00 GBP0.02
-------- ----- -------- -------- ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016 - Unaudited
Half year Financial year
ended ended
31 December 30 June 2016
2016
------------- ------------------
Current assets
Cash and cash equivalents GBP700,901 GBP115,243
Trade and other
receivables GBP271,455 GBP1,093,496
Inventory GBP1,427,770 GBP614,627
Prepayments and
other assets GBP126,822 GBP41,621
------------- ----------------
Total current assets GBP2,526,948 GBP1,864,987
Non-current assets
Property, Plant
and Equipment GBP56,562 GBP7,970
Intangible assets GBP2,065,022 GBP1,931,498
Other assets GBP13,994 -
Deferred tax asset GBP104,160 GBP98,096
------------- ----------------
Total non-current
assets GBP2,239,738 GBP2,037,564
Total assets GBP4,766,686 GBP3,902,551
------------- ----------------
Current liabilities
Trade and other
payables GBP1,611,283 GBP1,553,551
------------- ----------------
Total current liabilities
Non-current liabilities
Borrowings GBP507,909 GBP598,688
Deferred tax liability GBP4,280 GBP4,031
------------- ----------------
Total non-current
liabilities GBP512,189 GBP602,719
------------- ----------------
Total liabilities GBP2,123,472 GBP2,156,270
------------- ----------------
Net assets GBP2,643,214 GBP1,746,281
============= ================
Equity
Shares GBP2,444,265 GBP1,369,685
Share premium GBP1,301,083 GBP1,301,083
Merger reserve -GBP725,854 -GBP725,854
Foreign exchange
reserve GBP20,397 GBP39,914
Accumulated losses -GBP460,448 -GBP300,311
Non-controlling
interests GBP63,771 GBP61,764
------------- ----------------
Total equity and
reserves GBP2,643,214 GBP1,746,281
============= ================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 31(st) DECEMBER 2016 - Unaudited
Ordinary Share Merger Foreign Accumulated Non-controlling Total
Share Premium Reserve Exchange Losses interests Equity
Capital Reserve
GBP GBP GBP GBP GBP GBP GBP
Balance as
at 1 July
2016 1,369,685 1,301,083 -725,854 39,914 -300,311 61,764 1,746,281
Comprehensive
income
Profit/(loss)
for the
period -156,219 2,007 -154,212
Other
comprehensive
income -3,917 -3,917
Total
comprehensive
income for
the period 0 0 0 0 -160,136 2,007 -158,129
---------- ---------- --------- --------- ------------ ---------------- ----------
0
Transactions
with owners,
in their
capacity
as owners 0
Shares issued 1,181,577 1,181,577
Cost of shares
issued -106,997 -19,517 -126,514
Total
transactions
with owners,
in their
capacity
as owners 1,074,580 0 0 -19,517 0 0 1,055,063
---------- ---------- --------- --------- ------------ ---------------- ----------
0
Balance as
at 31
December
2016 2,444,265 1,301,083 -725,854 20,397 -460,448 63,771 2,643,214
---------- ---------- --------- --------- ------------ ---------------- ----------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JULY 2016 TO 31 DECEMBER 2016 -
Unaudited
Half year Half year
ended 31 ended 31
December December
2016 2015
Cash flows from operating activities
Receipts from customers GBP4,008,672 GBP954,774
Payments to suppliers and employees -GBP4,310,757 -GBP1,138,000
Interest received GBP0 GBP17,140
Net cash used by operating activities -GBP302,085 -GBP166,086
------------------- -------------------
Cash flows from investing activities
Purchase of property, plant
and equipment -GBP48,592 GBP0
Net cash paid on acquisition
of subsidiaries -GBP181,899 GBP0
Payments for product development -GBP27,949 GBP0
Net cash used by investment
activities -GBP258,440 GBP0
------------------- -------------------
Cash flows from financing activities
Proceeds from related parties GBP0 GBP144,897
Proceeds from issue of shares GBP1,256,479 GBP0
Repayments of borrowings -GBP59,764 GBP0
Proceeds from convertible notes GBP70,196
Payments for convertible notes -GBP31,015 GBP0
Transaction costs for shares
issued GBP0
Net cash from financing activities GBP1,165,700 GBP215,093
------------------- -------------------
Increase in cash and cash equivalents GBP605,175 GBP49,007
Cash and cash equivalents at
the beginning of the period GBP115,243 GBP107,045
Effect of movement in foreign
exchange rates -GBP19,517
Cash and cash equivalents at
the end of the period GBP700,901 GBP156,053
------------------- -------------------
Notes to the unaudited interim financial report
1. Basis of preparation
The interim financial statements for the six months
ended 31 December 2015 and 31 December 2016 and
for the twelve months ended 30 June, 2016 do not
constitute statutory accounts for the purposes of
Section 434 of the Companies Act 2006. The Annual
Report and Financial Statements for the year ended
30 June 2016 have been filed with the Registrar
of Companies. The Independent Auditors' Report on
the Annual Report and Financial Statements for the
year ended 30 June 2016 was unqualified, did not
draw attention to any matters by way of emphasis,
and did not contain a statement under sections 498(2)
or 498(3) of the Companies Act 2006. The 31 December
2016 statements were approved by the Board of Directors
on 8(th) February 2016. This unaudited interim report
has not been audited or reviewed by auditors pursuant
to the Financial Reporting Council guidance on Review
of Interim Financial Information.
The condensed financial statements in this Interim
Report have been prepared in accordance with the
requirements of IAS 34 'Interim Financial Reporting'
as adopted by the European Union.
As required by the Disclosure and Transparency Rules
of the UK's Financial Conduct Authority, the condensed
set of financial statements has been prepared by
applying the accounting policies and presentation
that were applied in the preparation of the Company's
published consolidated financial statements for
the year ended 30(th) June 2016, which were prepared
in accordance with International Financial Reporting
Standards as adopted by the European Union.
The condensed interim financial statements for the
six months ended 31 December 2016 and the comparative
figures for the six months ended 31 December 2015
are unaudited. The figures for the year ended 30
June 2016 have been extracted from the Annual Report
on which the Auditors issued an unqualified audit
report and which have been filed with the Registrar
of Companies.
2. Change of Functional and Presentational Currency
The Company has reviewed the existing structure
of reporting currencies and has decided that with
the recent listing on the London Stock Exchange
that the Company will be funded in Pounds Sterling
("GBP"), alongside incurring costs in GBP, Euro
("EUR"), US$ and the AU$. Having considered the
aggregate effect of all relevant factors, the Directors
have concluded that GBP will be the appropriate
functional currency of the Company with the change
becoming effective from 1 December 2016. This reflects
the fact that the GBP is the predominant currency
in the economic environment in which the Company
operates and expects to operate in going forward.
In line with IAS 21 when there is a change in an
entity's functional currency the change should take
place with effect from the date the Company determined
that the characteristics required to identify the
functional currency had changed. The Company determined
that this change occurred during half year ended
December 2016 and is effective for accounting purposes
from 1 December 2016. The Group and Company will
also adopt the GBP as the presentational currency
going forward.
3. Earnings per share
The calculation of the basic and diluted earnings
per share is based on the following data:
Six months ended Year ended
31 December 30 June
----------------------------- ------------------------------------ ---------------
2016 (Unaudited) 2015 (Unaudited) 2016 (Audited)
----------------------------- ----------------- ----------------- ---------------
GBP000 GBP000 GBP000
----------------------------- ----------------- ----------------- ---------------
Earnings
----------------------------- ----------------- ----------------- ---------------
Net profit from continuing
operations before tax
attributable to the equity
holders of the parent
company (158) 9 204
------------------------------ ----------------- ----------------- ---------------
Six months ended Year ended
31 December 30 June
-------------------------- ------------------------------------ ---------------
2016 (Unaudited) 2015 (Unaudited) 2016 (Audited)
-------------------------- ----------------- ----------------- ---------------
Number Number Number
-------------------------- ----------------- ----------------- ---------------
Number of shares
-------------------------- ----------------- ----------------- ---------------
Weighted average number
of ordinary shares for
the purposes of basic
earnings per share 11,204,158 7,449,281 10,301,983
--------------------------- ----------------- ----------------- ---------------
Weighted average number
of ordinary shares for
the purposes of diluted
earnings per share 11,204,158 7,449,281 10,301,983
--------------------------- ----------------- ----------------- ---------------
4. Related party transactions
The related party transactions that occurred in
the six months ended 31 December 2016 are not materially
different in size or nature to those reported in
the Company's Annual Report for the year ended 31
March 2016.
This document may contain forward-looking statements
that may or may not prove accurate. For example,
statements regarding expected revenue growth and
operating margins, market trends and our product
pipeline are forward-looking statements. Phrases
such as "aim", "plan", "intend", "anticipate", "well-placed",
"believe", "estimate", "expect", "target", "consider"
and similar expressions are generally intended to
identify forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties
and other important factors that could cause actual
results to differ materially from what is expressed
or implied by the statements. Any forward-looking
statement is based on information available to InnovaDerma
as of the date of the statement. All written or
oral forward-looking statements attributable to
InnovaDerma are qualified by this caution. InnovaDerma
does not undertake any obligation to update or revise
any forward-looking statement to reflect any change
in circumstances.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWAARBVAURUR
(END) Dow Jones Newswires
February 09, 2017 02:00 ET (07:00 GMT)
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