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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 : 9177E
InnovaDerma PLC
15 February 2018
Hot Features
Premium
InnovaDerma PLC
("InnovaDerma", the "Company" or the "Group")
Unaudited Half Year Results for the six months ended
31 December 2017
InnovaDerma (LSE: IDP), a UK developer of life sciences,
beauty and personal care products, is pleased to
announce its unaudited half year results for the
period ended 31 December 2017.
The Company has made considerable progress, both
in terms of revenue growth and new product development
across multiple categories which it believes will
create additional revenue channels and substantial
profitability in the second half of this financial
year, and therefore the Board remains confident
in meeting market expectations for this financial
year.
Financial Highlights
* Group revenue grew strongly by 31% to GBP4.2m
(HY2016: GBP3.2m) driven by the continued growth of
both the Direct to Consumer ("DTC") and retail
channels
* Gross profit increased by 20.6% to GBP2.22m (HY2016:
GBP1.84m)
* Loss before tax of GBP0.03m (HY2016: GBP0.15m) due to
planned investment in people required to support
international growth, and pre-launch product
development expenses
* Successful fundraising of GBP4.4m before expenses, to
support growth in the UK, Australian and US markets
* At 31 December 2017, the Group carried a cash balance
of GBP2.05m (31 Dec 2016: GBP0.21m)
Operational Highlights
* Very successful launch of the new hair loss treatment
and hair care brand, Roots Double Effect ("Roots") in
the UK, both within DTC and Retail channels during Q1
* Successful launch of the men's skincare brand Charles
+ Lee into Australia's largest department store, Myer,
with further product development underway, expanding
on the existing product lines
* Significant expansion in the makeup brand StevieK
Cosmetics with an additional 50 Stock Keeping Units
("SKUs"), taking the total range to 70 SKUs with the
brand expected to be launched into multiple regions
prior to the year end
* Skinny Tan brand's transition from self-tanning into
a beauty brand progressed further with the launch of
multiple new brand and product extensions
* Successfully launched Skinny Tan in Ireland through
Boots, McCabe and other retailers and secured the
launch in France through Sephora Online
* Growing DTC platform across multiple brands driving
financial performance, attracting new customers and
removing over-reliance on retail chains for growth
* Appointed Senior Vice President for North America to
drive distribution throughout North America for
multiple brands
Post Period End and Outlook
* Strong start to the second half of the year,
especially for Roots which is experiencing on-average
15% week-on-week growth in revenue since mid-December
* While Skinny Tan continues to perform well, on the
current growth trends both in retail and DTC, the
Company believes that Roots will contribute a
material level of revenue in the current financial
year
* Successfully developed EnBright, its skin brightening
& anti-ageing range portfolio, to launch into
multiple Asian markets in the next financial year
* High degree of focus on product and inventory
planning to cater for significant demand expected in
both UK & USA in H2
* Campaign for Prolong(TM)'s simultaneous launch in the
US and Australia planned for Q4 of this financial
year. This product is an integral part of the Group's
Life Sciences division and is expected to create an
incremental revenue channel
* Launch of Hair MD(TM)' into the US planned for H2
* Revenue and profits are expected to grow considerably
in the second half of the year driven by the
aforementioned strategic initiatives, the
fast-growing DTC platform, peak tanning season,
impressive growth of Roots and further expansion in
the UK, Europe and US
Haris Chaudhry, Executive Chairman said
"The Board has undertaken a number of strategic
initiatives to ensure the business has a strong
platform for significant growth in 2018 and beyond,
and these are already beginning to bear fruit. Our
fast-growing product portfolio, improved supply
chain and the recent addition of a highly talented
and experienced senior management team for key markets
are expected to deliver marked improvements across
the business. With good momentum behind the key
brands and significant orders expected, the Board
remains confident in meeting market expectations
for this financial year.
"I am pleased with the initiatives that we have
taken to progress further our core brand Skinny
Tan from self-tanning into a beauty brand and in
the very successful launch of Roots, both of which
are expected to deliver marked improvement in revenues
during this half year. 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, life sciences and personal care space."
This announcement contains inside information for
the purposes of Article 7 of EU Regulation 596/2014
Further enquiries
InnovaDerma
Haris Chaudhry/Joe Bayer +61 (0)3 9863 8030
------------------------------ ----------------------
finnCap Ltd
Geoff Nash/Giles Rolls/Kate +44 (0)207 220 0500
Bannatyne www.finncap.com
Alice Lane - Corporate
Broking
------------------------------ ----------------------
TB Cardew
Shan Shan Willenbrock
David Roach
Joe McGregor + 44 (0)20 7930 0777
------------------------------ ----------------------
About InnovaDerma:
InnovaDerma PLC (LSE: IDP) specializes in the research,
manufacture and marketing of clinically proven products
in life sciences, beauty and personal care products.
InnovaDerma has presence in Europe, US, Australasia,
Asia and Africa.
www.innovaderma.com
Executive Chairman's Review
Introduction
I am pleased to present our half-year results for
the period ended 31 December 2017. This has been
a period of considerable progress for the Company
and we have taken a number of strategic actions
to ensure we have strong foundations for growing
our core brand Skinny Tan, diversifying our product
portfolio and expanding our international presence.
Group revenues grew strongly to GBP4.2m, representing
an increase of 31% on the previous year, driven
by the continued growth of Skinny Tan in the UK
and DTC sales. The Group reported a loss before
tax of GBP0.03m (HY2016: GBP0.15m) as a result of
planned investments made in strengthening our personnel,
developing and launching multiple new brands and
brand extensions which are critical to the future
growth of the business. In addition, we are phasing
out old packaged Skinny Tan inventory making way
for a single form global packaging design.
Skinny Tan
Skinny Tan has continued its upward trend in growth,
both in DTC where the average number of orders have
increased from 10,000 per month for same period
last year to more than 13,000 per month for the
period as well as marked growth in retail sales-out
from our largest retail chain partner, Superdrug.
Additionally, owing to our very creative content
generation and digital strategy, Skinny Tan has
become the world's most followed self-tanning brand
on Facebook with the number of its followers now
exceeding 300,000, more than any other self-tanning
brand globally.
Creating significant footfall into our largest retail
partner, our highly-differentiated strategy propelled
the brand to become No.1 in its category during
2017 in Superdrug and has enabled the Company to
embark on turning it into a beauty brand with the
launch of multiple brand extensions during the period
with more to follow in H2. This has all been achieved
in a record space of 32 months since the brand was
acquired by the Company.
The IRI data (world's largest independent data provider
for Fast-Moving Consumer Goods (FMCG)) highlights
that in Superdrug, our revenues grew by 40% for
the 12-week period ending 3 February 2018 versus
the same period last year. Product revenues were
up more than 100% for the 4-week period ending 3
February 2018 and 65% up week on week versus the
same period last year. For the 52 weeks until the
end of January 2018, revenues were up more than
105% compared to the same period in the previous
year.
This impressive level of growth suggests that the
brand is experiencing significant demand and that
this should translate into substantial upside as
we enter the tanning season beginning in March.
The Company expects to build on this very positive
momentum as it embarks on acquiring new retail sales
channels across UK, Europe, and Ireland during H2
and into the new financial year.
The Company has added new digital marketing personnel
to drive DTC in the US with the roll out of new
packaging for Skinny Tan which will be consistent
with all other regions globally from March this
year along with finalising the process of negotiations
with multiple distribution and retail chains.
Roots
The Company launched Roots through its online DTC
channel and via Superdrug in August 2017. The brand
was developed in-house through intensive fast-tracked
work between the product development teams in the
UK and Australia and is manufactured in the UK.
The launch consisted of five product lines that
were initially targeted to the market of 40-60-year-old
females experiencing hair loss and dry, damaged
hair. The paraben- free, sulphate-free, vegan friendly
and cruelty-free line of products in attractive
packaging has seen very strong growth in preceding
months, backed by hundreds of customer testimonials
on the efficacy of the products in reducing hair
loss, strengthening, and nourishing thinning hair,
and in making the hair appear thicker and fuller.
Over the past two months, we have witnessed a significant
rise in online engagement and revenue through a
smartly executed DTC strategy, resulting in expansion
of both the shelf space and availability of Roots
in the number of Superdrug stores and a significant
rise in DTC orders. The brand is in the process
of being strengthened further with a host of new
line extensions which is expected to increase the
number of SKU's to more than 10 by the end of the
current financial year. The last IRI data report
for the week ending 3 February 2018 shows Roots'
sales from Superdrug being half of the total of
Skinny Tan's for the same week. This demonstrates
the rapid growth in Roots' revenue over the past
five months.
The Company expects the demand for Roots to follow
Skinny Tan's growth trajectory, and in a market
segment (hair loss) which is more than 10 times
the size of self-tanning. On current trends, the
Company believes Roots will make a material contribution
to this financial year's revenues and earnings.
UK & European 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 stocked throughout all of Superdrug's outlets
nationwide and as a result of its positive performance,
shelf space in their stores has increased following
the launch of multiple brand extensions including
Body Glow and Salon Effects Spray. In DTC, customers'
orders fulfilled through Skinny Tan's website have
increased by 32% per month on a year-on-year basis
to average more than 13,000 orders per month within
the UK alone. To support the growth of the UK, and
European markets, we have appointed multiple senior
team members. Sephora Online in France has been
secured for the launch of Skinny Tan during the
current quarter and discussions are underway with
multiple new retail chains across Europe.
US expansion
InnovaDerma entered the US market in second half
of the last financial year through the launch of
Skinny Tan through various retailers and e-tailers.
The Company is in the process of phasing out old-packaged
Skinny Tan which was being distributed at the launch
last year and we are aiming to re-launch the new
packaged Skinny Tan portfolio during the current
quarter with consistent global packaging for all
regions from 1 Apr 2018. In order to support our
growth in the US, the Company appointed Jesse Porto,
who has significant experience in the beauty industry.
He is leading the transition of Skinny Tan into
a beauty brand and launching multiple new brands
into the territory during H2. The Company is in
negotiations with a number of high profile distributors
in Canada and the US and implementing a plan to
re-launch Skinny Tan in its new packaging together
with launching other brands into this large market.
The Company is additionally executing a highly creative
marketing campaign for Prolong(TM) with a simultaneous
launch planned for the US and Australia during H2.
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. The Company made significant inroads
in Korea with new orders during the period for Skinny
Tan and the product expected to be marketed into
new territories throughout North East Asia during
H2. Additionally, the Company has been working with
the distributor in planning a launch and marketing
campaign for Roots into South Korea and the distributor
has started the process for the Ministry of Food
and Drug Safety' (formerly known as the Korean Food
& Drug Agency) approval which is required for hair
loss products. The distributor is also in discussions
with multiple retail chains within and outside Korea
for the impending launch of Charles + Lee during
H2 and EnBright (the new brightening range) in the
new financial year.
Product innovation
Product innovation is a key driver of our business
and important to growth. InnovaDerma has been focussed
in ensuring that it keeps bringing high quality
and effective products to its growing global geographic
and client base. To that end, its large and ever-growing
DTC client base allows it to research and create
brand extensions, new brands and to successfully
launch acquired brands. Additionally, the move of
production to the UK at the end of 2016 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 Skinny Tan's
sub brands for beauty, completing the development
and launch of Roots, developing and extending the
product lines for Charles + Lee and StevieK Cosmetics
and in preparation and subsequent launch of our
FDA-cleared Prolong(TM) and Hair MD(TM) in multiple
markets. The Company aims to be at the forefront
of the latest trends in self-tanning, beauty, hair
loss and hair care with product innovation, effective
formulations and attractive packaging which responds
to consumer demand.
The Market
The market for digital-native brands remains very
attractive, especially within the beauty, hair loss
and personal care segments. New brands have the
capacity to successfully identify a niche and capitalise
through the effective, disciplined and highly creative
use of social media and e-commerce channels backed
by relevant and smart-content to create rapid in-roads
and attain a level of success, traditionally only
available to global corporates via significant infrastructure
and spend.
Our 30 months' journey towards understanding and
building successful launch strategies digitally
for our various brands has positioned us for a very
exciting phase of our growth where the increasing
pool of knowledge and experience, fast-expanding
client and community base, new brands and geographies
have delivered the template for our success. Creating
incremental footfall in retail and turning newly-launched
brands into one of the best-performing brands within
the category in multiple markets has further cemented
our relationships with our key retail partners.
The Company is now 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 in which it operates
and plans to operate throughout 2018.
Strategy
Our objective is to become a fast-growing and leading
business behind strong and innovative brands, so
we are able to deliver significant and profitable
growth. The Company has two lead brands in Skinny
Tan and Roots to spearhead its top line and profit
growth for the second half in multiple markets.
The rapid success of these two brands provides the
Company with the time in which to carefully analyse
future growth markets and deliver profitable revenue.
This successful template of our future growth is
underpinned by the four key pillars of the Company's
future strategy:
* Complete transition of Skinny Tan into a
fully-fledged beauty brand - The Company has been
continuously researching the markets on both the
supply and demand sides and collaborating with its
retail partners to build further on its core product
portfolio in order to move into new markets by
leveraging its popular core brand. Throughout 2018,
we will be strengthening our core brand through
expansion into new territories and in expanding into
new beauty segments.
* Build Roots into the revenue leader for the group -
Hair loss and the hair care market globally is more
than 10 times the size of the self-tan market and our
initial momentum both in online and retail space puts
the Company in the very strong position of
successfully replicating the fantastic growth of
Skinny Tan (post acquisition by the Company) in
another brand. Owing to the non-cyclical nature of
demand in this space when compared to Skinny Tan and
with no geographical limitations for the
demand-origination, the Company is dedicating
considerable internal resources to build on the
substantial market opportunity for Roots.
* Strengthen the DTC platform through new brand
launches - 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. The Company has approximately
400,000 members in its online community base on
social media platforms and over 250,000 in its client
database which continues to grow on a daily basis.
This successful digital direct strategy de-risks and
delineates the business model, reduces the reliance
on the bricks and mortar retail channel for growth,
improves ownership of the client base and negates the
need to spend significant marketing dollars to
on-sell and cross-sell. In addition to enhancing cash
flow with all revenues realised within a couple of
days of ordering, we can access real-time market
intelligence to optimise the development of
promotional activities and new product portfolios. In
addition, this strategy has been proven to increase
footfall significantly into retailers through
creating immediate consumer demand.
* Successful launch of Life Sciences portfolio - The
Company is aware of the costs and length of time it
has taken to successfully acquire and build its
portfolio of two FDA-cleared life sciences products.
The importance of our diversified strategy is that we
have ownership of global intellectual property and we
are confident in having the required know-how along
with the necessary resources to gradually build
incremental revenue channels for both devices in
multiple markets.
Outlook
The Company is in a strong position of having two
fast-growing, diverse and differentiated brands
in Skinny Tan and Roots to increase its revenues
and profitability. The Company expects that this
will underpin an exciting period of financial performance
throughout H2 of this financial year and beyond.
Coupled with its other brands including Charles
+ Lee, StevieK Cosmetics and the planned launch
of its life sciences portfolio the Board remains
confident of delivering a robust second half and
in meeting market expectations for this financial
year.
Our long-term strategic objective is to establish
ourselves as a digitally-native low-cost business
with a very strong, innovative and diverse brand
portfolio across beauty, personal care and life
sciences. We look forward to further progress and
remain excited by the significant number of opportunities
we have to scale this business across a wide range
of brands and products.
Haris Chaudhry
Executive Chairman
Financial Performance
Group revenue increased by 31% to GBP4.2m (HY2015:
GBP3.2m) driven predominantly by Superdrug retail
UK DTC revenues.
Gross margins were slightly lower at 53.2% (HY2016:
57.6%) as the sell down of old packaged Skinny Tan
inventory in Australia and the US was undertaken
to make way for the introduction of new global packaging
across the product range.
Overall expenses were higher, increasing from GBP1.99m
to GBP2.28m. Marketing expenses of GBP0.72m were
lower than in the previous comparable period due
to a reduction UK DTC marketing costs and lower
US marketing costs. Salary and wage costs increased
from GBP0.49m to GBP0.84m, a reflection of increased
people resources required to manage product development
and the introduction of new products in H2 of this
financial year.
Administrative Expenses of GBP0.68m show an increase
of GBP0.28m over the previous comparable period,
a result of increased support costs required for
the Company's significant growth plans.
The loss before tax was reported at GBP0.03m, (HY2016:
GBP0.15), which was in line with the earnings weighting
for the first half as against the second half of
the year. As reported in our trading update on 18
January 2018, we advised that there were significant
costs relating to product development and pre-launch
costs for products which will occur in H2 of the
financial year.
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 GBP2.05m at
the end of the reported period as against an opening
balance of GBP0.21m. Capital raising activities
undertaken in October raised GBP4.4m before expenses
and these funds were used for inventory purchases
of new product lines in Roots and Skinny Tan and
product development costs in the Prolong and HairMD.
The Group carries no external debt whilst related
party loans were reduced by GBP0.09m. The subsequent
impact reducing related party and intercompany borrowings
from GBP0.41m at 30 June 2017 to GBP0.34m as at
31 December 2017.
Dividends
The Board has elected not to declare a dividend
at this time.
Haris Chaudhry
Executive Chairman 15 February 2018
Responsibility statement
The names and functions of the Directors of the
Company are as follows:
Haris Chaudhry Executive Chairman
Joseph Bayer Executive Director
Kieran Callan Non-executive Director
Rodney Turner Non-executive Director
Ross Andrews Non-executive Director (Appointed 1
August 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 15 February 2018
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 2017, the ordinary share capital
of InnovaDerma PLC consisted of 14,376,633 shares,
with a nominal value of EUR0.10 each. During the
reported period the Group acquired a holding of
2% of the shares of its subsidiary Skinny Tan Pty
Ltd from a founding shareholder. This takes the
holding in that entity from 91% to 93%.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE 6 MONTHS YEARED
31(st) DECEMBER 2017 - Unaudited
Half Year ended Half Year
31 December ended 31 December
2017 2016
Note GBP GBP
Revenue 4,167,845 3,187,459
Cost of sales (1,949,102) (1,350,547)
---------------- -------------------
Gross profit 2,218,743 1,836,912
Other Income 26,308 0
Marketing expenses (722,220) (1,095,175)
Listing expenses (33,136)
Wages & salaries expenses (837,582) (496,305)
Administrative expenses (684,482) (399,113)
---------------- -------------------
Profit before tax (32,369) (153,681)
Income Tax expense 0 (531)
---------------- -------------------
Net profit for the
period (32,369) (154,212)
Other comprehensive
income 7,883 (3,917)
Total comprehensive
income for the period (24,486) (158,129)
---------------- -------------------
Attributable to:
Owners of the parent (62,336) (160,136)
Non-controlling interests 37,851 2,007
Basic & diluted profit/(loss) 2 GBP0.00 GBP0.00
per share
Earnings per share
Note 31 Dec 31 Dec 30 Jun17
17 16
-------- ----- -------- -------- ---------
Basic 2 GBP0.00 GBP0.00 GBP0.06
-------- ----- -------- -------- ---------
Diluted 2 GBP0.00 GBP0.00 GBP0.06
-------- ----- -------- -------- ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2017 - Unaudited
As at 31 As at 30
December June 2017
2017
GBP GBP
Current assets
Cash and cash equivalents 2,049,079 207,301
Trade and other receivables 905,205 1,781,773
Inventory 3,606,352 2,258,989
Prepayment and other assets 164,390 114,705
----------- -----------
Total current assets 6,725,026 4,362,768
Non-current assets
Property, Plant and Equipment 88,938 127,199
Intangible assets 4,259,200 3,645,198
Other assets 65,845 14,031
Deferred tax asset 112,390 115,905
----------- -----------
Total non-current assets 4,526,373 3,902,333
----------- -----------
Total assets 11,251,399 8,265,101
----------- -----------
Current liabilities
Trade and other payables 1,055,348 2,419,332
Current tax payable 421,517 501,408
----------- -----------
Total current liabilities 1,476,865 2,920,740
Non-current liabilities
Borrowings 343,667 404,845
Deferred tax liability (40) 0
-----------
Total non-current liabilities 343,627 404,845
----------- -----------
Total liabilities 1,820,492 3,325,585
----------- -----------
Net assets 9,430,907 4,939,516
=========== ===========
Equity
Share Capital 1,725,344 1,565,905
Share premium 8,185,631 3,890,210
Merger reserve (721,132) (721,132)
Warrant Reserve 110,000 0
Foreign Exchange reserve (45,300) (53,686)
Non-controlling interest 165,781 164,481
Retained Profit/ (Accumulated
Losses) 10,583 93,738
----------- -----------
Total equity and reserves 9,430,907 4,939,516
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 JULY 2017 TO 31 DECEMBER 2017 - Unaudited
Ordinary Share Merger Warrant Foreign Accumulated Non-controlling Total
Share Premium Reserve Reserve Exchange Earnings/ interests Equity
Capital Reserve (Losses)
GBP GBP GBP GBP GBP GBP GBP
Balance
as at 30
June 2017 1,565,905 3,890,210 (721,132) - (52,926) 92,978 164,481 4,939,516
Comprehensive
income
Profit
for the
period - - - - (70,220) 37,851 (32,369)
Other
comprehensive
income - - - - 7,883 - - 7,883
---------- ---------- ---------- --------- ---------- ------------ ---------------- ----------
Total
comprehensive
income
for the
year - - - - 7,883 (70,220) 37,851 (24,486)
---------- ---------- ---------- --------- ---------- ------------ ---------------- ----------
Transactions
with owners,
in their
capacity
as owners
Shares
issued 161,865 4,813,675 - - - - - 4,975,540
Foreign
exchange
differences
on
translation
of foreign
denominated
subsidiaries (2,426) - - - 503 (1,042) - (2,965)
Increase
holding
in Skinny
Tan AU - - - - (11,893) (36,551) (48,444)
Cost of
shares
issued (518,254) - 110,000 - - - (408,254)
---------- ---------- ---------- --------- ---------- ------------ ---------------- ----------
Total
transactions
with owners,
in their
capacity
as owners 159,439 4,295,421 0 110,000 503 (12,935) (36,551) 4,515,877
---------- ---------- ---------- --------- ---------- ------------ ---------------- ----------
Balance
at 31
December
2017 1,725,344 8,185,631 (721,132) 110,000 (44,540) 9,823 165,781 9,430,907
---------- ---------- ---------- --------- ---------- ------------ ---------------- ----------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD 1 JULY 2017 TO 31 DECEMBER 2017 - Unaudited
Half Year Half Year
ended ended
30 December 30 December
2017 2016
GBP GBP
Cash flows from operating
activities
Receipts from customers 5,044,414 4,008,672
Payments to suppliers and
employees (7,000,887) (4,310,757)
Taxes Paid (76,415) 0
Net cash used by operating
activities (2,032,888) (302,085)
------------- -------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (11,509) (48,592)
Payments for product development (51,814) (27,949)
Net cash paid on acquisition
of subsidiaries (105,878) (181,899)
Net cash used by investment
activities (169,201) (258,440)
------------- -------------
Cash flows from financing
activities
Proceeds from issue of shares 4,454,860 1,256,479
Repayments of borrowings (61,178) (59,764)
Payments for convertible
notes 0 (31,015)
Transaction costs for shares
issued (518,254) 0
Net cash from financing activities 3,875,428 1,165,700
------------- -------------
Increase in cash and cash
equivalents 1,673,339 605,175
Cash and cash equivalents
at the beginning of the period 207,301 115,243
Effect of movement in foreign
exchange rates 168,439 (19,517)
Cash and cash equivalents
at the end of the period 2,049,079 700,901
------------- -------------
Half Year Half Year
ended ended
30 December 30 December
2017 2016
GBP GBP
Cash flows from operating
activities
Receipts from customers 5,044,414 4,008,672
Payments to suppliers and
employees (7,000,887) (4,310,757)
Taxes Paid (76,415) 0
Net cash used by operating
activities (2,032,888) (302,085)
------------- -------------
Cash flows from investing
activities
Purchase of property, plant
and equipment (11,509) (48,592)
Payments for product development (51,814) (27,949)
Net cash paid on acquisition
of subsidiaries (105,878) (181,899)
Net cash used by investment
activities (169,201) (258,440)
------------- -------------
Cash flows from financing
activities
Proceeds from issue of shares 4,454,860 1,256,479
Repayments of borrowings (61,178) (59,764)
Payments for convertible
notes 0 (31,015)
Transaction costs for shares
issued (518,254) 0
Net cash from financing
activities 3,875,428 1,165,700
------------- -------------
Increase in cash and cash
equivalents 1,673,339 605,175
Cash and cash equivalents
at the beginning of the
period 207,301 115,243
Effect of movement in foreign
exchange rates 168,439 (19,517)
Cash and cash equivalents
at the end of the period 2,049,079 700,901
------------- -------------
Notes to the unaudited interim financial report
1. Basis of preparation
The interim financial statements for the six months ended 31 December 2016 and 31 December 2017 and for the twelve months ended 30 June, 2017 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 2017 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 2017 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 2017 statements were approved by the Board of Directors on 14(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 2017, 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 2017 and the comparative figures for the six months ended 31 December 2016 are unaudited. The figures for the year ended 30 June 2017 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. 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
----------------------------- ------------------------------------ ---------------
2017 (Unaudited) 2016 (Unaudited) 2017 (Audited)
----------------------------- ----------------- ----------------- ---------------
GBP000 GBP000 GBP000
----------------------------- ----------------- ----------------- ---------------
Earnings
----------------------------- ----------------- ----------------- ---------------
Net profit from continuing
operations before tax
attributable to the equity
holders of the parent
company (32) (158) 689
------------------------------ ----------------- ----------------- ---------------
Six months ended Year ended
31 December 30 June
-------------------------- ---- -------------------------------- ---------------
2017 (Unaudited) 2016 2016 (Audited)
(Unaudited)
-------------------------- ---- ----------------- ------------- ---------------
Number Number Number
-------------------------- ---- ----------------- ------------- ---------------
Number of shares
-------------------------- ---- ----------------- ------------- ---------------
Weighted average number
of ordinary shares for
the purposes of basic
earnings per share 12,744,852 11,204,158 11,395,485
-------------------------------- ----------------- ------------- ---------------
Weighted average number
of ordinary shares for
the purposes of diluted
earnings per share 12,744,852 11,204,158 11,395,485
-------------------------------- ----------------- ------------- ---------------
3. Related party transactions
Name Transaction Amount received Amount due from/(to)
from/
(paid to) for as at 31 as at
the Half Year 30
ended December December June
2017 2016 2017 2017
GBP GBP GBP GBP
-------------------- ----------------- ----------- ---------- ------------- ---------------
Farris Marketing
Concepts Pty
Ltd Loan payable(1) (87,521) (89,502)
Zaymar Investments
Pty Ltd Loan payable(1) (90,511) (89,610) (226,486) (320,231)
Mr Haris Chaudhry Loan payable(1) 403 1,600
-------------------- ----------------- ----------- ---------- ------------- -------------
(1) These loans are interest free
and unsecured.
Variation in Amount due to Farris Marketing Concepts Pty Ltd and Zaymar Investments Pty Ltd between 30(th) June 2017 and 31 December 2017 is due to valuation of AUD loan in GBP as at 31 December 2017
Nature of related parties
Farris Marketing Concepts Pty Ltd and Zaymar Investments are related parties of Mr Haris Chaudhry, the Executive Chairman.
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 USRNRWKAUAAR
(END) Dow Jones Newswires
February 15, 2018 02:00 ET (07:00 GMT)
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