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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Skinbiotherapeutics Plc | LSE:SBTX | London | Ordinary Share | GB00BF33H870 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.75 | 8.50 | 9.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Biological Pds,ex Diagnstics | 132k | -2.84M | -0.0163 | -5.37 | 15.23M |
TIDMSBTX
RNS Number : 2898V
SkinBioTherapeutics PLC
30 November 2023
SkinBioTherapeutics plc
("SkinBioTherapeutics" or "the Company")
Full year results
30 November 2023 - SkinBioTherapeutics plc (AIM: SBTX, or the "Company"), the life science business focused on skin health, announces the fully consolidated audited results for the 12 months to 30 June 2023.
Operational highlights
-- The Skinbiotix(TM) partnership with Croda plc product development phase continues well:
o Successful scale-up of manufacturing
o Post financial year end, contract to extend for a further 12 months to enable exploration of potential additional claims
-- AxisBiotix-Ps(TM)
o Solid sales growth in the UK; expansion of sales distribution into Europe during the year in Spain and post period end in Italy and France
o Monthly retention rates of subscribers remain at 80%+
o Post year end
-- Start of recruitment of participants for the consumer study with acne food supplement; results expected in Q1 2024
-- Launch on Amazon UK
-- Oral research and inflammation programmes continue at the University of Manchester
-- Management continuing to investigate potential accretive inorganic opportunities that provide synergies and accelerated routes to market; update on progress expected in the near term
Financial highlights
-- Revenues up to GBP132k (2022: GBP75k) boosted by solid increase in UK revenues.
-- Operating at loss GBP2,999k (2022: loss GBP2,982k) with increase in sales balancing the increase in headcount costs
-- Cash and cash equivalents as at 30 June was GBP1.3m (2022: GBP1.8m), following successful Placing and Open Offer in January 2023
o Post year end, the Company raised an additional GBP3.3m (gross) in a Placing and Retail Offer in November 2023
-- Change to Company's auditors due to auditors' corporate reorganisation
Stuart Ashman, CEO of SkinBioTherapeutics said:
"In 2023, we introduced AxisBiotix-PS(TM) into new European territories, beginning with Spain then moving onto France and Italy. Launching a disruptive product into any market always takes time to establish, and given our limited resources, we are pleased with the loyalty and the very positive testimonials we are receiving.
"We continue to enjoy a positive relationship with the Croda/Sederma teams and they have provided very supportive commentary on their views of the SkinBiotix(TM) technology. We see their wish to extend the collaboration for a further 12 months as very positive; it may slightly delay near-term revenue generation, but the potential enhanced commercial opportunities could be quite considerable. All costs for the extension and the resulting clinical grade study are met directly by Croda."
"Next year should also see the early results from other studies, including the consumer study around an acne product, as well as results from our oral and inflammation programmes with Manchester University. The acne programme is especially exciting. We saw initial positive responses to AxisBiotix-Ps in participants of the psoriasis study who had other skin conditions, and this has resulted in this new development programme which could have a significant impact on a much wider population.
"Talks with potential strategic partners continue around our other pillars. We are also pushing ahead with our inorganic acquisition programme, looking for opportunities that are synergistic and complement our current programmes. We have strict criteria for these opportunities; we will not overpay and they must be accretive from day one."
-Ends-
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For more information please contact:
SkinBioTherapeutics plc Tel: +44 (0) 191 495 7325 Stuart J . Ashman, CEO Manprit Randhawa, CFO Cavendish Capital Markets Limited Tel: +44 (0) 20 7397 8900 (Nominated Adviser & Broker) Giles Balleny, Dan Hodkinson (Corporate Finance) Charlie Combe (Broking) Dale Bellis, Tamar Cranford-Smith (Sales) Instinctif Partners (financial press) Tel: +44 (0) 20 7457 2020 Melanie Toyne-Sewell / Jack Kincade SkinBioT herapeutics@instinctif.com
Notes to Editors
About SkinBioTherapeutics plc
SkinBioTherapeutics is a life science company focused on skin health. The Company's proprietary platform technology, SkinBiotix(R), is based upon discoveries made by Professor Catherine O'Neill and Professor Andrew McBain.
The Company is targeting a number of skin healthcare sectors, the most advanced of which are cosmetic skincare and food supplements to modulate the immune system by harnessing the gut-skin axis. In each area SkinBioTherapeutics plans to exemplify its technology through human studies. The Company's first product, AxisBiotix-Ps(TM), a food supplement to address the symptoms of mild to moderate psoriasis.
The Company listed on AIM in April 2017 and is based in Newcastle, UK. For more information, visit: www.skinbiotherapeutics.com and www.axisbiotix.com .
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi ed by their use of terms and phrases such as "believe", "could", "should" "envisage", "estimate", "intend", "may", "plan", "potentially", "expect", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Group's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements re ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
Chairman and Chief Executive's Statement
Overview
The year for SkinBioTherapeutics has been dominated by growing the sales of AxisBiotix-Ps(TM) in the UK and expanding sales and distribution channels into Europe, starting with Spain. Beyond the commercial operations, the Company has continued its research programmes alongside the University of Manchester, and engaging with partners and potential strategic partners across the other business pillars, including SkinBiotix, and MediBiotix. Management is also pushing its inorganic acquisition strategy forward with the aim to generate further shareholder value in the near to medium term.
Financial review
Reported sales for the full year were GBP132k (2022: GBP75k), in line with management expectations, as UK sales continued to increase slowly but steadily, and the introduction of new European regions.
Cost of sales were GBP46k (2022: GBP29k) and gross profits were GBP85k (2022: GBP45k). As shipping volumes have increased, the Company is seeing a gradual improvement in the operating margin.
Total administrative expenses were GBP3,085k (2022: GBP3,027k), comprising research and development expenditure of GBP931k (2022: GBP861k), which includes the ongoing cost of the inflammation programme, and in oral health and wellbeing research programme. Selling and distribution costs were GBP81k (FY22 GBP44k) due to an increase in volumes of product being sold. Ongoing operating expenses were GBP2,073k (2022: GBP2,122k).
The operating loss was GBP2,999k (2022: GBP2,982k).
The cash and cash equivalents balance as at 30 June 2023 was GBP1.3m (2022: GBP1.8m) reflecting tight control on costs and was boosted by the Placing and Open Offer which raised 2.6m of gross proceeds to fund future operations. Post year end, the Company raised an additional GBP3.3m (gross) in a Placing and Retail Offer in November 2023.
Update on the Company's auditors
Jeffreys Henry LLP has indicated that it will resign as the Company's Auditor as the firm will provide audit services to clients from another company in the group, Gravita Audit Limited. This is following a business reorganisation at the auditors. As announced in the FY22 Annual Report, Gravita Audit Limited has been appointed as the Company's auditor for the financial year ending 30 June 2023.
Jeffreys Henry LLP has confirmed to the Company that, in accordance with Section 519 of the Companies Act 2006, there are no circumstances in connection with its resignation which it considers need to be brought to the attention of the Company's members or creditors.
Current trading and outlook
Revenues of AxisBiotix-Ps(TM) have continued to increase following the year end, with an increase in the monthly run rate hitting GBP20k+, with revenues on course to double to cGBP250k for the year ending 30 June 2024.
Retention rates for subscribers continue to be at least 80% with retention rates being measured as the number of subscribers who are remaining as a subscriber at the end of each month, compared to the same cohort that were in existence at the start of the previous month.
The Group also successfully completed a fundraise in November 2023, raising gross proceeds of GBP3.3m which will allow it to continue its R&D programmes, continue marketing of AxisBiotix-PS in the UK and Europe, and fund operating expenditure.
Acquisition strategy
The Group is in advanced discussions to acquire two private companies that either manufacture or sell a variety of branded topical products for common dermatological conditions to NHS hospitals, dispensing practices and national pharmacy chains. The proposed targets are profitable and the Group sees a number of synergies to improve this. However, there is no certainty of timing or execution as the Company would need to agree additional funding using debt and/or equity and any acquisition would be conditional on satisfactory diligence.
In addition, the Group has a pipeline of further acquisitions where active discussions are taking place. Any targets which the Group is interested in purchasing will be accretive from a revenue and earnings perspective, and thus reduce the operating cash burn, with the goal of the Group in the next 12-18 months to becoming a cash generating entity.
Operational review
SkinBiotix(TM) Pillar (skincare/cosmetics)
In November 2019, SkinBioTherapeutics signed a commercial and manufacturing agreement with Croda's Consumer Care division, Sederma, which is a specialist in bioactive ingredients for the cosmetic industry. Croda has a global portfolio of personal care customers which comprise many of the major international cosmetics and FMCG brands.
During this financial year, Sederma has been focused on developing quality formulations with their customers, which has seen scaling-up manufacture of SkinBiotix(TM) from 600 litres to 2,000 litres which is expected to ultimately lead to the 20,000 litres vessel required to service the global market. 4 pilot batches have been manufactured which identified significant, unexpected technical benefits which Sederma believes may lead to a justifiable increase in price based on clinical evidence. To this end, the company extended its development agreement with Croda plc to allow a clinical trial to be carried out to evidence the additional activity. This study is fully funded by Sederma /Croda and is expected to be completed early 2024.
Post year end, in November, Sederma extended its contract with SkinBioTherapeutics for a further 12 months to conduct these studies which are due to run from late 2023 into early 2024.
AxisBiotix(TM) Pillar (gut/skin axis)
The AxisBiotix pillar has challenged management time in the year, as efforts to grow the UK market and expanding sales and distribution channels into Europe, as well as driving the Acne programme forward.
- AxisBiotix(TM) (Psoriasis)
Management has continued to grow the sales of the AxisBiotix-Ps(TM) food supplement designed to alleviate the symptoms associated with irritable skin conditions like psoriasis in the UK and Europe.
The primary focus has been growing the UK market, whilst keeping a strong control on costs, which has led to a reduction in marketing expenditure with the completion of the influencer programme. The response from customers continues to be extremely positive with the retention rates of AxisBioTix-Ps(TM) in the UK staying at 80% or above, which is encouraging. The retention rate is measured as the number of subscribers who remain a subscriber at the end of each monthly period, compared to the same cohort that were in existence at the start of a month period. This is an important statistic for the product, along with the increasing number of positive testimonials from customers describing the impact that this product has had on their lives.
This year was marked by the expansion into Europe, initially in Spain in February 2023. Spain was management's first country target since the market for psoriasis is similar to the UK with incidence rates of psoriasis of between 1%-3% of the population. Post period end, the Company opened new markets in Italy and France. The Company also announced today that AxisBiotix-Ps(TM) will be sold on Amazon's UK platform; the aim will be to expand this into other countries, starting with European countries where the product already has regulatory approval - Spain, Italy and France.
Work continues with Winclove, our formulation partner, to investigate other delivery vehicles for SkinBiotix, for example capsules, tablets etc which we hope to announce in 2024. These will bring with them economic benefits to the Group.
Discussions with potential multinational partners are on-going and are supported by our current activities. Partnering discussions can take time and difficult to predict. Management will provide further information as and when they are able to.
- AxisBiotix for Acne
The original consumer study with AxisBiotix-Ps(TM) involved participants who had a mix of symptoms from psoriasis, rosacea, and acne. The theory behind the use of a probiotic supplement was to calm and therefore reduce the inflammatory pathways associated with irritable skin conditions. The data showed that as well as alleviating symptoms of psoriasis, the product had an impact on other skin conditions; customer testimonials made reference to its positive effect on eczema, dandruff and acne. As a result of this, management has chosen acne as the next market to address with an adapted form of AxisBiotix(TM).
During the year, the team has been working on a stabilised bacterial blend from which to choose final formulations for a consumer study in acne. The benefit of undertaking another consumer study is the relatively short time and cost compared to a clinical study and the classification as a food supplement rather than a heavily regulated medical device.
Post year end, in October 2023, SkinBioTherapeutics announced that two separate blends, formulated by Winclove Probiotics BV, had been finalised to be studied side-by-side. A consumer volunteer study is commencing to determine which has better efficacy. The aim is to supply participants with the blends in powder form, just like AxisBiotix-PS(TM).
The study involves 300 UK-based participants with acne-prone skin, 150 randomly selected participants will receive product 1, the other half of the group will receive product 2. Online recruitment of participants will start via a pre-qualification questionnaire form.
The products will be mailed to participants who are expected to record their experience of using the product in a weekly questionnaire over eight weeks, over which they are expected to take the product daily. A follow-up questionnaire will be provided one month after the participants stop taking their allocated product. The study is expected to be completed and results reported by the end of Q1 2024.
MediBiotix(TM) Pillar (MedTech applications e.g. woundcare)
Management is looking at using Skinbiotix(TM) technology in medical device applications, such as woundcare since early data showed that it encourages wound healing. In a similar way to the AxisBiotix-Ps(TM) supplement, management is exploring how SkinBiotix could be developed to alleviate the symptoms of eczema via the gut-skin axis.
The advanced woundcare sector is significant but extremely complex and heavily regulated, therefore, management believes the optimal strategy is to seek a partner with an extensive product portfolio and significant experience in the space to develop this pillar further. Management continues to have advanced conversations with global players in this sector.
CleanBiotix(TM) Pillar (anti-infection)
In early studies of SkinBiotix(TM), data also suggested that the lysate prevented the most common skin pathogen, Staphylococcus aureus, from sticking to and growing on skin surfaces. Increased use of antibiotics has led to resistance to this infection (MRSA) and incidences are growing more common in hospital settings. Development of SkinBiotix as an anti-infection agent is an exciting opportunity, but, again, management believes it would require taking forward only as part of a wider outlicensed programme with a bigger organisation.
Other Research Programmes
The Group has continued with its two research programmes with the University of Manchester; an oral programme and an inflammation study.
In August 2022, the first phase of the oral programme was completed and results strongly supported the use of probiotic strains or lysates in the prevention of gum (periodontal) disease. By mixing bacteria and lysates together with oral cells, data suggested that the cells were protected from the pathogens connected with gum disease and reduced inflammation. By changing the type and mix of bacteria to lysate created different levels and elements of protection, therefore, further study is required to optimise the mix. The research and development programme with the University of Manchester continues to uncover novel mechanism by which bacterially derived actives are protective in oral care applications.
Three different actives, and a number of components have been investigated with differentiated activities that offer a route to oral care products with different protective actions on the hard and soft tissues of the oral cavity. This current phase of the programme ends in January 2024 and the company will work with the University to publish relevant findings in H1 2024, and the remainder of the details of the next phase programme through to commercialisation. This lysate is different to that of SkinBiotix.
The inflammation study is still underway. It is looking at how the microbiome can influence and balance the body's response to inflammation specifically related to harmful UVR (sunlight) light. Several first-in-class findings have been made on the effects of bacterially derived components and their ability to regulate the cytokine mediated inflammatory response associated with exposure to UVR. These results strongly support the use of bacterial actives in protecting the skin from sun exposure and a breakout patent filing has been made by the company on a lead active.
The company continues to work with the University of Manchester in further validating these and other findings and in advancing the technology toward human trials. The programme has delivered very encouraging results and has been expanded and extended to allow for the actives identified to be validated in propriety human skin models. The programme will run until June 2025.
Conclusion
In 2023, the majority of the Company's focus has been on growing sales of AxisBiotix-PS(TM) in the UK and starting to push into new European territories, beginning with Spain. Launching a disruptive product into any market always takes time to establish, and given our limited resources, we are pleased with the loyalty and the very positive testimonials we are receiving. The launch into new European markets is very exciting and marks a new chapter.
We continue to enjoy a positive relationship with the Croda/Sederma teams and they have provided very supportive commentary on their views of the SkinBiotix(TM) technology. We see their wish to extend the collaboration for a further 12 months as positive overall; it may delay near-term revenue generation, but the potential enhanced commercial opportunities could be considerable.
Next year should also see the early results from other studies, including the consumer study around an acne product, as well as results from our oral and inflammation programmes with Manchester University. The acne programme is especially exciting. We saw initial positive responses to AxisBiotix-Ps in participants of the psoriasis study who had other skin conditions, and this has resulted in this new development programme which could have a significant impact on a much wider population.
We were very pleased to complete and announce our recent fundraise of GBP3.3m of gross proceeds in November 2023, which allow the Group to continue to progress its R&D programmes, namely the oral and inflammation programmes.
Talks with potential strategic partners continue around our other pillars. We are also pushing ahead with our inorganic acquisition programme, looking for opportunities that are synergistic and complement our current programmes. We have strict criteria for these opportunities; we will not overpay and they must be accretive from day one.
Martin Hunt (Non-executive Chairman)
Stuart J. Ashman (Chief Executive Officer)
30 November 2023
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2023
Notes 2023 2022 Continuing Operations GBP GBP Revenue 3 132,057 74,761 Cost of Sales (46,867) (29,424) Gross Profit 85,190 45,337 ------------ ------------ Selling and distribution costs (81,294) (43,804) Research and development (930,636) (861,383) Operating expenses (2,072,612) (2,122,238) ------------ ------------ Total administrative expenses (3,084,542) (3,027,425) ------------ ------------ Loss from operations 4 (2,999,352) (2,982,088) Finance costs 5 (8,886) (10,135) ------------ ------------ Loss before taxation (3,008,238) (2,992,223) Taxation 173,089 199,622 ------------ ------------ Loss for the year 7 (2,835,149) (2,792,601) Other comprehensive income - - Total comprehensive loss for the year (2,835,149) (2,792,601) ============ ============ Basis and diluted loss per share (pence) 8 (1.72) (1.78)
Consolidated Statement of Financial Position
As at 30 June 2023
Notes 2023 2022 Assets GBP GBP Non-current assets Property, plant and equipment 10 78,658 - Right-of-use assets 11 94,502 126,903 Intangible assets 12 700,331 625,504 ------------- ------------ Total non-current assets 873,491 752,407 ------------- ------------ Current assets Inventories 14 33,497 122,571 Trade and other receivables 15 192,885 138,150 Corporation tax receivable 15 182,545 266,916 Cash and cash equivalents 1,311,834 1,804,923 ------------- ------------ Total current assets 1,720,761 2,332,560 ------------- ------------ Total assets 2,594,252 3,084,967 ============= ============ Equity and liabilities Equity Capital and reserves Called up share capital 19 1,731,390 1,567,802 Share premium 19 10,947,874 8,758,037 Other reserves 438,589 437,316 Accumulated deficit (11,122,943) (8,287,794) ------------- ------------ Total equity 1,994,910 2,475,361 ------------- ------------ Liabilities Non-current liabilities Lease liabilities 17 69,601 100,647 ------------- ------------ Total non-current liabilities 69,601 100,647 ------------- ------------ Current liabilities Trade and other payables 16 498,696 481,742 Lease liabilities 17 31,045 27,217 ------------- ------------ Total current liabilities 529,741 508,959 ------------- ------------ Total liabilities 599,342 609,606 ------------- ------------ Total equity and liabilities 2,594,252 3,084,967 ============= ============
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2023
2023 2022 GBP GBP Cash flows from operating activities Loss before tax for the period (3,008,238) (2,992,223) Depreciation of property, plant and equipment 11,136 - Right-of-use assets depreciation and interest 41,287 39,557 Amortisation of IP 656 250 Share-based payments charge 1,273 52,704 ------------ ------------ (2,953,886) (2,889,712) ------------ ------------ Changes in working capital Decrease/(increase) in inventories 89,074 (122,571) (lncrease)/decrease in trade and other receivables (54,735) 130,796 Increase in trade and other payables 16,954 101,922 ------------ ------------ Cash generated by operations 51,293 110,147 ------------ ------------ Taxation received 257,458 116,534 ------------ ------------ Net cash used in operating activities (2,645,135) (2,673,031) ------------ ------------ Investing activities Purchase of property, plant and equipment (89,794) - Purchase of IP (75,483) (96,813) ------------ ------------ Net cash used in investing activities (165,277) (96,813) ------------ ------------ Cash flows from financing activities Net proceeds from issue of shares 2,353,425 - Lease payments made (36,102) (35,122) ------------ ------------ Net cash generated by/(used in) financing activities 2,317,323 (35,122) ------------ ------------ Net decrease in cash and cash equivalents (493,089) (2,804,966) Cash and cash equivalents at the beginning of the period 1,804,923 4,609,889 ------------ ------------ Cash and cash equivalents at the end of the
period 1,311,834 1,804,923 ============ ============
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2023
Share Share Other Retained Capital Premium reserves earnings Total GBP GBP GBP GBP GBP As at 1 July 2021 1,567,802 8,758,037 384,612 (5,495,193) 5,215,258 Loss for the period - - - (2,792,601) (2,792,601) Share-based payments - - 52,704 - 52,704 As at 30 June 2022 1,567,802 8,758,037 437,316 (8,287,794) 2,475,361 ---------- ----------- ---------- ------------- ------------ Loss for the period - - - (2,835,149) (2,835,149) Issue of shares 163,588 2,453,793 - - 2,617,381 Cost of share issue - (263,956) - - (263,956) Share-based payments - - 1,273 - 1,273 As at 30 June 2023 1,731,390 10,947,874 438,589 (11,122,943) 1,994,910 ========== =========== ========== ============= ============
Company Statement of Financial Position
As at 30 June 2023
Notes 2023 2022 Assets GBP GBP Non-current assets Property, plant and equipment 10 78,658 - Right-of-use assets 11 94,502 126,903 Intangible assets 12 694,402 624,255 Investments 13 482,434 423,072 Other receivables 15 1,445,801 1,142,891 ------------ ------------ Total non-current assets 2,795,797 2,317,121 ------------ ------------ Current assets Trade and other receivables 15 149,157 91,427 Corporation tax receivable 15 182,545 230,391 Cash and cash equivalents 1,124,961 1,561,402 ------------ ------------ Total current assets 1,456,663 1,883,220 ------------ ------------ Total assets 4,252,460 4,200,341 ============ ============ Equity and liabilities Equity Capital and reserves Called up share capital 19 1,731,390 1,567,802 Share premium 19 10,947,874 8,758,037 Other reserves 438,589 437,316 Accumulated deficit (9,441,596) (7,151,781) ------------ ------------ Total equity 3,676,257 3,611,374 ------------ ------------ Liabilities Non-current liabilities Lease liabilities 17 69,601 100,647 ------------ ------------ Total non-current liabilities 69,601 100,647 ------------ ------------ Current liabilities Trade and other payables 16 475,557 461,103 Lease liabilities 17 31,045 27,217 ------------ ------------ Total current liabilities 506,602 488,320 ------------ ------------ Total liabilities 576,203 588,967 ------------ ------------ Total equity and liabilities 4,252,460 4,200,341 ============ ============
Company Statement of Cash Flows
For the Year Ended 30 June 2023
2023 2022 GBP GBP Cash flows from operating activities Loss before tax for the period (2,471,551) (2,029,989) Depreciation of property, plant and equipment 11,136 - Right-of-use assets depreciation and interest 41,287 39,557 Impairment of financial assets 16,573 28,407 Share-based payments charge 1,273 52,704 ------------ ------------ (2,401,282) (1,909,321) ------------ ------------ Changes in working capital (lncrease)/decrease in trade and other receivables (57,731) (31,539) Increase in trade and other payables 14,454 108,423 ------------ ------------ Cash (used)/generated by operations (43,277) 76,884 ------------ ------------ Taxation received 229,583 116,534 ------------ ------------ Net cash used in operating activities (2,214,976) (1,715,903) ------------ ------------ Investing activities Purchase of property, plant and equipment (89,794) - Purchase of IP (70,147) (95,314) Investment in subsidiaries (378,847) (856,949) ------------ ------------ Net cash used in investing activities (538,788) (952,263) ------------ ------------ Cash flows from financing activities Net proceeds from issue of shares 2,353,425 - Lease payments made (36,102) (35,122) ------------ ------------ Net cash generated by/(used in) financing activities 2,317,323 (35,122) ------------ ------------ Net decrease in cash and cash equivalents (436,441) (2,703,288) Cash and cash equivalents at the beginning of the period 1,561,402 4,264,690 ------------ ------------ Cash and cash equivalents at the end of the period 1,124,961 1,561,402 ============ ============
Company Statement of Changes in Equity
For the Year Ended 30 June 2023
Share Share Other Retained Capital Premium reserves earnings Total GBP GBP GBP GBP GBP As at 1 July 2021 1,567,802 8,758,037 384,612 (5,284,889) 5,425,562 Loss for the period - - - (1,866,892) (1,866,892) Share-based payments - - 52,704 - 52,704 As at 30 June 2022 1,567,802 8,758,037 437,316 (7,151,781) 3,611,374 Loss for the period - - - (2,289,815) (2,289,815) Issue of shares 163,588 2,453,793 - - 2,617,381 Cost of share issue - (263,956) - - (263,956) Share-based payments - - 1,273 - 1,273 As at 30 June 2023 1,731,390 10,947,874 438,589 (9,441,596) 3,676,257 ========== =========== ========== ============ ============
Notes to the Financial Statements
For the Year Ended 30 June 2023
1. General information
SkinBioTherapeutics plc ('the Company') is a public limited company incorporated in England under the Companies Act and quoted on the AIM market of the London Stock Exchange (AIM: SBTX).
The principal activity of the Group is the identification and development of technology that harnesses the human microbiome to improve health.
2. Significant accounting policies and basis of preparation
a) Statement of compliance
The consolidated and company financial statements of SkinBioTherapeutics plc have been prepared in accordance with UK-adopted International Accounting Standards ('IFRS') and the Companies Act 2006 applicable to companies reporting under IFRS.
b) Basis of preparation
The consolidated and company financial statements have been prepared under the historical cost convention modified by the revaluation of certain financial instruments. The accounting policies have been applied consistently in all material respects.
The consolidated and company financial statements are presented in Sterling (GBP) as this is the predominant functional currency of the Group and Company, and is the currency of the primary economic environment in which it operates. Foreign transactions are accounted in accordance with the policies set out below.
c) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 30 June each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
d) Going concern
These financial statements have been prepared on a going concern basis. In considering the appropriateness of this assumption, the Board has considered the Group's projections for the twelve months from the date of approval of this financial information, including cash flow forecasts. The directors are confident that based on the Group's forecasts and the recently completed capital raise of approximately GBP3.3 million (before costs) the Group will have enough funds to continue in operation for at least 12 months from the date of signing these financial statements. The Directors believe that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore adopt the going concern basis of accounting in preparing these financial statements.
e) Estimates and judgements
The preparation of financial statements requires the Board to make judgements, estimates and assumptions that may affect the application of accounting policies and reported amounts of assets and liabilities as at each balance sheet date and the reported amounts of revenues and expenses during each reporting period. Any estimates and assumptions are based on experience and any other factors that are believed to be relevant under the circumstances and which the Board considers to be reasonable. Actual outcomes may differ from these estimates. Any revisions to accounting estimates will be recognised in the period in which the estimate is revised if the revision affects only that period. If the revision affects both current and future periods, the change will be recognised over those periods.
The following are the critical judgements that the Directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements.
Estimation of the lifetime of intangible assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortization and accumulated impairment losses.
Intangible assets recognised are reviewed against the criteria for capitalisation with useful life determined by reference to the underlying product being developed. Management believes that the assigned values and useful lives, as well as the underlying assumptions, are reasonable, though different assumptions and assigned lives could have a significant impact on the reported amounts.
Useful lives are also examined on an annual basis and adjustments, where applicable are made on a prospective basis. The Group does not have any intangible assets with indefinite lives.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Intellectual property - 20% straight line
Capitalisation of development costs
During the year GBP75,483 (2022: GBP96,813) of development costs were capitalised, bringing the total amount of development costs capitalised, as intangible assets, as at 30 June 2023, to GBP700,331 (2022: GBP625,504), net of amortisation. Management has reviewed the balances by project, compared the carrying amount to expected future revenues and is satisfied that no impairment exists and that the costs capitalised will be fully recovered as the products are launched to market. New product projects are monitored regularly and should the technical or market feasibility of a new product be in question, the project would be cancelled and capitalised costs to date will be removed from the balance sheet and charged to the statement of comprehensive income.
Inventory valuation
Inventory is carried at the lower of cost and net realisable value, using the first in first out method. Appropriate provisions for estimated irrecoverable amounts due to slow-moving or obsolete inventory are recognised in the income statement where there is objective evidence that the assets are impaired.
The provision is GBP35,386 at 30 June 2023 (2022: GBP265,966).
Refund accruals
Accruals for sales returns are estimated on the basis of historical returns and are recorded so as to allocate them to the same period in which the original revenue is recorded. These accruals are reviewed regularly and updated to reflect The Boards's latest best estimates. The Board do not believe that the difference between the accrual estimate and actual returns will be material.
The accrual for net refunds totalled GBP82 at 30 June 2023 (2022: GBP267). The expected returns rate would need to differ to actual returns by 10% to have an impact of +/- GBP1,014 on reported revenue and on operating profit. The choice of a 10% change for the determination of sensitivity represents an extreme variation in the return rate.
Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. The judgments made and the model used are further specified in note 20.
Estimation of incremental borrowing rate in accounting for leases under IFRS16
In recognising a lease liability and right-of-use asset under IFRS 16 the Group has used an estimated incremental borrowing rate of 8%. The Group does not have any borrowings, so in order to apply IFRS 16 it was necessary to estimate the incremental borrowing rate that would be faced by the Group. The rate of 8% was determined by looking at a range of loans available on the market. If the interest rate used in the calculation were higher, this would have the effect of reducing the size of both the lease liability and right-of-use asset, reducing the depreciation charge and increasing the interest charge in the consolidated income statement. The overall change to the Company Income Statement and the Company Statement of Financial Position would be immaterial. There would be no change to operating cash flows or lease payments as a result of a change in the estimate of the incremental interest rate.
f) Application of new and re vised International Financial Reporting Standards (IFRSs)
The Group has adopted all of the new or amended Accounting Standards and interpretations issued by the International Accounting Standards Board ('IASB') or the IFRS Interpretations Committee ('IFRIC') that are mandatory and relevant to The Group's activities for the current reporting period.
No new standards or interpretations issued by the IASB or the IFRIC have led to any material changes in the Group's accounting policies or disclosures during each reporting period.
New and revised IFRSs in issue but not yet effective
There are a number of new and revised IFRSs that have been issued but are not yet effective that the Group has decided not to adopt early. The most significant of these are as follows:
Reference Title Summary Application date of standard (Periods commencing on or after) IFRS17 Insurance Contracts Principles for the recognition, 1 January 2023 measurement, presentation and disclosure of insurance contracts 1 January 2023 Amendments to address concerns and implementation challenges that were identified after IFRS 17 was published ---------- -------------------- --------------------------------- --------------------- IAS1 Presentation Amendments regarding the 1 January 2023 of Financial classification of liabilities Statements as current or non-current ---------- -------------------- --------------------------------- --------------------- IAS8 Accounting Amendments regarding the 1 January 2023 Policies, Changes definition of accounting in Accounting estimates Estimates ---------- -------------------- --------------------------------- --------------------- IAS12 Income taxes Deferred Tax related to 1 January 2023 Assets and Liabilities arising from a Single Transaction ---------- -------------------- --------------------------------- ---------------------
IAS37 Amendments Amendments regarding disclosure 1 January 2023 to IAS1 and of material accounting policies IFRS Practice Statement 2 ---------- -------------------- --------------------------------- ---------------------
The adoption of these Standards and Interpretations is not expected to have a material impact on the financial information of the Group in the period of initial application when they come into effect.
3. Segmental information
IFRS 8 'Operating Segments' requires operating segments to be determined based on The Group's internal reporting to the Chief Operating Decision Maker. The Chief Operating Decision Maker has been determined to be The Board of Directors which receives information on the basis of the Group's operations in key geographical territories, based on the Group's management and internal reporting structure. Based on this assessment the Group consider there to be 3 operating segments. Despite there being 3 operating segments, it is not currently feasible to allocate assets and liabilities to the operating segments. As these operating segments grow, we expect that allocation of assets and liabilities will be possible. Administrative expenses are not segmented for accounting purposes as the Board do not review these by segment currently.
Year ended 30 June 2023 UK US EU Total GBP GBP GBP GBP Retail sales 118,921 9,275 3,861 132,057 Cost of sales (42,205) (3,292) (1,370) (46,867) --------- -------- -------- --------- Gross profit 76,716 5,983 2,491 85,190 Year ended 30 June 2022 UK US EU Total GBP GBP GBP GBP Retail sales 57,687 17,074 - 74,761 Cost of sales (23,264) (6,160) - (29,424) --------- -------- ---- --------- Gross profit 34,423 10,914 - 45,337
Due to the nature of its activities, the Group is not reliant on any individual major customers.
4. Expenses - analysis by nature
Group Group 2023 2022 GBP GBP Other income (3,292) (1,032) Selling and distribution costs 81,294 43,804 Depreciation of right-of-use asset 32,401 29,422 Depreciation of plant and equipment 11,136 - Research and development 930,636 861,383 Directors remuneration (including share-based compensation) 778,639 624,564 Staff costs 214,606 142,342 Foreign exchange differences (51) 1,127 Auditors remuneration * audit fees 34,450 26,250 * other services 3,000 2,260 Inventory write down 35,386 265,966 Other operating costs 966,337 1,031,339 --------------------- --------------------- Total operating expenses 3,084,542 3,027,425 ===================== =====================
5. Finance costs
Group Group 2023 2022 GBP GBP Interest payable 8,886 10,135 ----------------- ------------------ 8,886 10,135 ================= ==================
Interest payable represents amounts arising on leases accounted for under IFRS 16.
6. Employees and Directors
Group and company 2023 2022 The average monthly number of employees Number Number and senior management was: Executive directors 2 2 Non-executive directors 3 2 Employees 7 4 -------------------- ------------------ Average total persons employed 12 8 ==================== ==================
As at 30 June 2023 the Company had 11 employees (2022: 7).
Group and company 2023 2022 Staff costs in respect of these GBP GBP employees were: Wages and salaries 1,012,909 631,789 Social security costs 137,531 68,816 Defined contribution pensions 19,733 16,883 Share-based payments (see note 20) 1,273 52,704 ----------------------- ------------------- Total remuneration 1,171,446 770,192 ======================= ===================
All staff were directly employed by SkinBioTherapeutics Plc.
Some of these staff costs are included within research and development and some in share issue costs.
All the directors above can be considered to be key management and have the responsibility for planning, directing and controlling, directly or indirectly, the activities of the Company.
The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.
The Company operates a defined contribution pension scheme for employees and directors. The assets of the scheme are held separately from those of the Company in independently administered funds. The amounts outstanding at 30 June 2023 are GBP3,326 (2022: GBP2,633).
Group and company 2023 2022 Directors remuneration: GBP GBP Stuart J. Ashman 382,478 368,449 Manprit Randhawa 261,480 14,951 Doug Quinn - 140,414 Martin Hunt 68,670 63,000 Dr Cathy Prescott 41,011 31,500 Danielle Bekker 25,000 6,250 ------------------- ------------------- Total remuneration 778,639 624,564 =================== =================== Which is made up of: Remuneration 755,258 572,151 Amounts receivable under long term incentive schemes 11,375 42,603 Company contributions to pension schemes 12,006 9,810 ------------------- ------------------- Total remuneration 778,639 624,564 =================== ===================
The number of directors to whom retirement benefits are accruing in respect of qualifying services under defined contribution pension schemes is 2 (2022: 2). The highest paid director received total emoluments of GBP382,478 (2022: GBP368,449) during the year.
7. Taxation
Income taxes recognised in profit or loss 2023 2022 GBP GBP Current tax Current period - UK corporation - - tax R&D tax credit 182,547 173,729 R&D tax credit - prior year (8,458) 25,893 ------------------- ------------------- Tax credit for the year 173,089 199,622 =================== ===================
The tax charge for each period can be reconciled to the loss per the statement of comprehensive income as follows:
Taxable losses (3,008,238) (2,992,223) Normal applicable rate of tax 19.00% 19.00% Loss on ordinary activities multiplied by normal rate of tax (571,565) (568,522) Effects of: Depreciation 2,116 - Disallowables 3,752 12,525 Capital allowances (17,061) - R&D enhanced deductions (137,215) (128,668) R&D tax credit (173,089) (199,622) Losses surrendered 248,189 227,644 Unused tax losses carried forward 471,784 457,021 ----------------------- ----------------------- UK tax charge/(credit) (173,089) (199,622) ======================= =======================
The Group has an unrecognised deferred tax asset of GBP1,637,470 (2022: GBP1,132,844) at the period end, which has not been recognised in the financial statements due to uncertainty of future profits. The Group has an estimated tax loss of GBP8,618,261 (2022: GBP5,962,339) available to be carried forward against future profits.
8. Loss per share
2023 2022 GBP GBP Basic and diluted loss per share Total comprehensive loss for the year (2,835,149) (2,792,601) Weighted average number of shares 164,713,045 156,780,236 Basic and diluted loss per share (pence) (1.72) (1.78) ======================= =======================
As the Group and Company are reporting a loss from continuing operations for the year then, in accordance with IAS 33, the share options are not considered dilutive because the exercise of the share options would have an anti-dilutive effect. The basic and diluted earnings per share as presented on the face of the income statement are therefore identical.
9. Company's result for the period
The Group has elected to take the exemption under section 408 of the Companies Act 2006 not to present the Parent Company income statement account.
The loss for the Parent Company for the period was GBP2,289,815 (2022: GBP1,866,892).
10. Property, plant and equipment
Group and Company
Plant & Machinery GBP Cost At 1 July 2021 10,200 Additions - ------------- At 30 June 2022 10,200 Additions 89,794 At 30 June 2023 99,994 ============= Accumulated depreciation At 1 July 2021 10,200 Charge for the - year ------------- At 30 June 2022 10,200 Charge for the year 11,136 At 30 June 2023 21,336 ============= Net book value At 1 July 2021 - ------------- At 30 June 2022 - ------------- At 30 June 2023 78,658 ============= 11. Right-of-use assets Group and Company Total GBP Cost At 1 July 2021 145,757 Additions 12,997 -------- At 30 June 2022 158,754 -------- At 30 June 2023 158,754 ======== Accumulated amortisation At 1 July 2021 2,429 Charge for the year 29,422 -------- At 30 June 2022 31,851 Charge for the year 32,401 At 30 June 2023 64,252 ======== Net book value At 1 July 2021 143,328 -------- At 30 June 2022 126,903 -------- At 30 June 2023 94,502 ======== 12. Intangible assets Patents Patents & trademarks & trademarks Group Company GBP GBP Cost At 1 July 2021 528,941 528,941 Additions 96,813 95,314 -------------- -------------- At 30 June 2022 625,754 624,255 Additions 75,483 70,147 At 30 June 2023 701,237 694,402 ============== ============== Accumulated amortisation At 1 July 2021 - - Charge for the year 250 - -------------- -------------- At 30 June 2022 250 - Charge for the year 656 - At 30 June 2023 906 - ============== ============== Net book value At 1 July 2021 528,941 528,941 -------------- -------------- At 30 June 2022 625,504 624,255 -------------- -------------- At 30 June 2023 700,331 694,402 ============== ==============
Intellectual property is to be amortised over the expected period that the asset generates income. A small part of the IP belonging to the active subsidiary, AxisBiotix Limited, commenced amortisation in the year ending 30 June 2022. Other IP amortisation is expected to commence in the year ending 30 June 2024.
13. Investments Company: Investments in subsidiary undertakings GBP Cost At 1 July 2021 113,733 Additions 309,339 ------------------- At 30 June 2022 423,072 Additions 59,362 ------------------- At 30 June 2023 482,434 ===================
As at 30 June 2023, the Company directly owned the following subsidiaries:
Name of company Country of incorporation Proportion of equity interest SkinBiotix Limited United Kingdom 100% of ordinary shares AxisBiotix Limited United Kingdom 100% of ordinary shares MediBiotix Limited United Kingdom 100% of ordinary shares CleanBiotix Limited United Kingdom 100% of ordinary shares PharmaBiotix Limited United Kingdom 100% of ordinary shares 14. Inventories 2023 2022
GBP GBP Inventories 33,497 122,571 ------------------ ------------------- 33,497 122,571 ================== ===================
The cost of inventories recognised as an expense during the year was GBP82,252 (2022: GBP295,390).
The cost of inventories recognised as an expense includes GBP35,386 (2022: GBP265,966) in respect of write-downs of inventory to net realisable value.
15. Trade and other receivables 2023 2022 2023 2022 GBP GBP GBP GBP Current Trade debtors 816 1,800 - - Corporation tax 182,545 266,916 182,545 230,391 Sales taxes recoverable 108,720 48,669 96,240 13,560 Other receivables 12,693 11,101 12,891 11,101 Prepayments 70,656 76,580 40,026 66,766 -------- -------- ---------- ---------- 375,430 405,066 331,702 321,818 ======== ======== ========== ========== Non-current Amounts due from group undertakings - - 1,445,801 1,142,891 -------- -------- ---------- ---------- - - 1,445,801 1,142,891 ======== ======== ========== ==========
The fair values of the Company's current trade and other receivables are considered to equate to their carrying amounts. The maximum exposure to credit risk for trade receivables is represented by their carrying amount. There are no financial assets which are past due but not impaired. No current financial assets are impaired.
The amounts owed by subsidiary undertakings include a loan to AxisBiotix Limited for GBP1,788,549 (2022:GBP1,531,177) which was discounted to GBP1,524,909 and then impaired by GBP16,573, in addition to earlier years impairment of GBP62,531 to give a current value of GBP1,445,801 (2022: GBP1,142,891) under IFRS 9, as set out in note 2. Although the loan has no repayment terms, it is anticipated to be repaid in 3 years from the date of these financial statements.
16. Trade and other payables 2023 2022 2023 2022 GBP GBP GBP GBP Current Trade creditors 194,274 72,610 176,176 66,277 Accruals 236,837 366,784 233,839 353,534 Sales taxes payable 505 85 - - Other taxes 62,815 31,812 61,636 31,059 Other payables 4,265 10,451 3,906 10,233 -------- -------- -------- -------- 498,696 481,742 475,557 461,103 ======== ======== ======== ========
Trade and other payables principally consist of amounts outstanding for trade purchases and ongoing costs. They are non-interest bearing and are normally settled on 30-day terms. The directors consider that the carrying value of trade and other payables approximates to their fair value. All trade and other payables are denominated in Sterling. The Company has financial risk management policies in place to ensure that all payables are paid within the credit timeframe and no interest has been charged by any suppliers as a result of late payment of invoices during the period.
The fair value of trade and other payables approximates their current book values.
17. Lease liabilities
Group and Company
2023 2022 GBP GBP Maturity analysis Year 1 37,770 36,102 Year 2 39,029 37,770 Year 3 35,777 39,029 Year 4 - 35,778 Year 5 - - --------- --------- 112,576 148,679 Less future interest charges (11,930) (20,815) --------- --------- 100,646 127,864 ========= ========= Analysed as Current 31,045 27,217 Non-current 69,601 100,647 --------- --------- 100,646 127,864 ========= ========= 18. Financial instruments
Maturity analysis
A summary table with maturity of financial assets and liabilities presented below is used by management to manage liquidity risks. The amounts disclosed in the following tables are the contractual undiscounted cash flows. Undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the statement of financial position, as the impact of discounting is not material.
The maturity analysis of financial instruments at 30 June 2023 is as follows:
Group Carrying On demand 3 to 1 to 2 to amount and less 12 months 2 years 5 years than 3 months Assets Cash and cash equivalents 1,311,834 1,311,834 - - - Trade and other receivables 13,509 13,509 - - - ---------- ---------- ----------- --------- --------- 1,325,343 1,325,343 - - - ========== ========== =========== ========= ========= Liabilities Trade and other payables 435,881 435,881 - - - Lease liabilities 112,576 8,498 29,272 39,029 35,777 ---------- ---------- ----------- --------- --------- 548,457 444,379 29,272 39,029 35,777 ========== ========== =========== ========= ========= Company Carrying On demand 3 to 1 to 2 to amount and less 12 months 2 years 5 years than 3 months Assets Cash and cash equivalents 1,124,961 1,124,961 - - - Trade and other receivables 12,892 12,892 - - - ---------- ---------- ----------- --------- --------- 1,137,853 1,137,853 - - - ========== ========== =========== ========= ========= Liabilities Trade and other payables 413,923 413,923 - - - Lease liabilities 112,576 8,498 29,272 39,029 35,777 ---------- ---------- ----------- --------- --------- 526,499 422,421 29,272 39,029 35,777 ========== ========== =========== ========= =========
The maturity analysis of financial instruments at 30 June 2022 is as follows:
Group Carrying On demand 3 to 1 to 2 to amount and less 12 months 2 years 5 years than 3 months Assets Cash and cash equivalents 1,804,923 1,804,923 - - - Trade and other receivables 12,901 12,901 - - - ---------- ---------- ----------- --------- --------- 1,817,824 1,817,824 - - - ========== ========== =========== ========= ========= Liabilities Trade and other payables 449,930 449,930 - - - Lease liabilities 133,501 5,854 26,341 33,989 67,317 ---------- ---------- ----------- --------- --------- 583,431 455,784 26,341 33,989 67,317 ========== ========== =========== ========= ========= Company Carrying On demand 3 to 1 to 2 to amount and less 12 months 2 years 5 years than 3 months Assets Cash and cash equivalents 1,561,402 1561,402 - - - Trade and other receivables 1,542,278 11,101 - - 1,531,177 ---------- ---------- ----------- --------- ---------- 3,103,680 1,572,503 - - 1,531,177 ========== ========== =========== ========= ========== Liabilities Trade and other
payables 430,044 430,044 - - - Lease liabilities 133,501 5,584 26,341 33,989 67,317 ---------- ---------- ----------- --------- ---------- 563,545 435,898 26,341 33,989 67,317 ========== ========== =========== ========= ========== 18. Share capital Number of Share Share shares capital premium As at 1 July 2021 156,780,236 1,567,802 8,758,037 ------------ ---------- ----------- As at 30 June 2022 156,780,236 1,567,802 8,758,037 Ordinary share issued at 1p per share 16,358,618 163,588 2,453,793 Costs related to shares issued - - (263,956) ------------ ---------- ----------- As at 30 June 2023 173,138,854 1,731,390 10,947,874 ============ ========== ===========
On 5 January 2023 16,358,618 ordinary shares were issued by way of a placing at a price of 16p per share to raise funding for the Group.
Share capital is the amount subscribed for shares at nominal value, issued and fully paid.
Share premium is the amount subscribed for share capital in excess of nominal value.
19. Share-based payments
Share options
The Group operates share-based payment arrangements to remunerate directors and others providing similar services in the form of a share option scheme. The exercise price of the option is normally equal to the market price of an ordinary share in the Group at the date of grant. Each share option converts into one ordinary share of the Group on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights.
Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:
Group and company 2023 2022 Number Weighted Number Weighted of options average of options average exercise exercise price price GBP GBP Outstanding at 1 July 17,379,343 0.12 16,729,343 0.11 Granted during the year - - 650,000 0.38 Forfeited/cancelled during the year (650,000) 0.38 - - ------------ ---------- ------------ ---------- Outstanding at 30 June 16,729,343 0.11 17,379,343 0.12 ============ ========== ============ ==========
On 9 May 2023, 650,000 options were forfeited, which were previously granted at an exercise price of GBP0.376 per share.
The total credit recognised for the year ended 30 June 2023 for these share options is -GBP10,102, whereas in 2022 this was a charge of GBP10,102.
The fair values of the share options issued in the year were derived using the Black Scholes model. The charge recognised for the year ended 30 June 2023 for share options is GBP11,375 (2022: GBP52,704) amounting to a total net charge of GBP1,273 being recognised in the profit and loss account. The following assumptions were used in the calculations:
Deed pool 1 2 3a 3b 3c Grant date 05/04/17 05/04/17 05/04/17 05/04/17 05/04/17 Exercise price 9p 9p 9p 9p 9p Share price at grant date 9p 9p 9p 9p 9p Risk-free rate 0.24% 0.24% 0.16% 0.16% 0.16% Volatility 60% 60% 60% 60% 60% Expected life 3.5 years 3.5 years 2.75 years 2.75 years 2.75 years Fair value 2.58p 1.85p 2.30p 2.30p 2.30p Deed pool 4 5 6 7 8 Grant date 18/04/19 18/04/19 18/04/19 03/03/20 08/04/20 Exercise price 18p 18p 18p 9.5p 9p Share price at grant date 18p 18p 18p 9.5p 7p Risk-free rate 0.75% 0.75% 0.75% 0.29% 0.12% Volatility 60% 60% 60% 80% 80% Expected life 3.5 years 3.5 years 3.5 years 0 years 2 years Fair value 2.85p 3.99p 3.48p 9.50p 0.87p
The closing share price per share at 30 June 2023 was 12.5p (30 June 2022: 20.25p).
Expected volatility is based on a conservative estimate for an AIM listed entity. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
20. Related party transactions Group and company Key management personnel compensation 2023 2022 GBP GBP Short-term employee benefits including social security costs 934,467 694,844 Post-employment benefits 13,218 11,239 Share-based payments 11,375 42,603 -------- -------- 959,060 748,686 ======== ========
Compensation figures above include directors and key management personnel.
Transactions with other related parties
During the period ended 30 June 2023, the Company was charged fees of GBP55,440 (2022: GBP50,400) by Invictus Management Ltd, a company in which Martin Hunt, a director of the Company, is also a director. These fees relate to Martin Hunt's consultancy services to the Company. As at 30 June 2023 GBP5,292 (2022: GBP5,040) was outstanding.
During the period ended 30 June 2023, the Company was charged fees of GBP28,096 (2022: GBP25,200) by Biolatris Ltd, a company in which Dr Cathy Prescott, a director of the Company, is also a director. These fees relate to Dr Cathy Prescott's consultancy services to the Company. As at 30 June 2023 GBPnil (2022: GBPnil) was outstanding.
21. Ultimate controlling party
No one shareholder has control of the Company.
22. Events after the reporting date
The Company has evaluated all events and transactions that occurred after 30 June 2023 up to the date of signing of the financial statements.
On 22 November 2023 the Company completed a fundraise through a Placing and Retail Offer, raising GBP3.3m of gross proceeds.
No other material subsequent events have occurred that would require adjustment to or disclosure in the financial statements.
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November 30, 2023 12:25 ET (17:25 GMT)
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