Share Name Share Symbol Market Type Share ISIN Share Description
Venn Life Sciences Holdings Plc LSE:VENN London Ordinary Share GB00B9275X97 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 6.85p 6.70p 7.00p - - - 0 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Pharmaceuticals & Biotechnology 12.5 -4.5 -6.6 - 5

Venn Life Sciences Holdings PLC Preliminary Final Results

10/05/2019 7:00am

UK Regulatory (RNS & others)


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RNS Number : 5910Y

Venn Life Sciences Holdings PLC

10 May 2019

10 May 2019

Venn Life Sciences Holdings Plc

("Venn", "Venn Life Sciences" or the "Company")

Preliminary Final Results for the year ended 31 December 2018

Venn Life Sciences (AIM: VENN), an Integrated Drug Development Partner offering a combination of drug development expertise and clinical trial design and management to pharmaceutical, biotechnology and medical device organisations, announces its unaudited results for the year ended 31 December 2018.

Financial Highlights

   --     Total revenue was EUR14.6m (2017: EUR17.8m) 
   --      EBITDA Loss (before exceptional items) of EUR1.06m  (2017: profit EUR0.96m) 
   --      Write down of EUR2.2m on the impairment of Intangible Assets 

-- Loss for the year after tax of EUR4.5m (2017: EUR1.5m) after a charge of EUR2.6m (2017: EUR1.7m) being investment write-down on Integumen PLC (EUR0.4m) and impairment of intangible assets (EUR2.2m)

-- Arrangement of EUR1.0 milion loan note in December to support working capital and collaboration with Open Orphan

   --     Cash and cash equivalents of EUR1.1m as at 31 December 2018 (2017: EUR1.2m) 

Operational Highlights

   --     Improved revenue mix with lower key client dependency 

-- Maintanence of billable resource base despite project deferrals, enabling quicker business recovery

   --     Strategic collaboration with Open Orphan and focus on Rare and Orphan indications 

-- Successful management of ground breaking, life saving technology development program providing invaluable reference point for future business generation

Outlook

Post the year end the Company has experienced a continuation of prior year trends with low utilisation resulting in revenue and EBITDA being behind management forecasts for the year to date. Based on the current proposals book the Directors expect there should be an increase in revenues and profitability in the coming months. However, the Company continues to require careful management of available cash resources and the Directors expect additional financial resource to be required in order for the Company to successfully execute its growth strategy.

Commenting on the Group's results, Tony Richardson, CEO of Venn, said:

"While the confidential nature of our business prevents us from fully disclosing client and technology details, I am pleased to communicate that we have played a pivotal role in the development of a successful drug for the treatment of a rare medical condition. This is the culmination of three years work and provides a critical proof point regarding Venn's drug development capabilities. We have significantly advanced our credentials as a drug development partner and begin this year with greater credibility in the eyes of current and prospective clients. We are committed to further service and geographical expansion of our business in 2019 and further to our collaboration announcement in December 2018 have made significant strides in developing our platform offering for Rare and Orphan drug developers"

Enquiries:

Venn Life Sciences Holdings Plc Tel: +353 (0)1 5499 341

Cathal Friel / Tony Richardson

Arden Partners (Nominated Adviser and Joint Broker) Tel: +44 (0)20 7614 5900

John Llewellyn-Lloyd / Ruari McGirr / Benjamin Cryer

Davy (Euronext Growth Adviser and Joint Broker) Tel: +353 (0)1 679 6363

Anthony Farrell (Corporate Finance) / Ivan Murphy

Camarco (Financial PR) Tel: +44 (0)20 3757 4980

Tom Huddart / Billy Clegg / Daniel Sherwen

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2018

 
                                                        2018       2017       2016 
                                                     EUR'000    EUR'000    EUR'000 
 ------------------------------------------------  ---------  ---------  --------- 
 Continuing operations 
 Revenue                                              14,185     17,405     17,909 
 Direct Project and Administrative Costs            (16,552)   (17,763)   (18,805) 
 Other operating income                                  371        410        335 
 Operating (loss)/Profit                             (1,996)         52      (561) 
                                                   ---------  ---------  --------- 
  Depreciation                                          (95)       (99)      (133) 
  Amortisation                                         (840)      (792)      (689) 
  Exceptional items                                      (-)       (25)      (125) 
 EBITDA before exceptional items                     (1,061)        968        386 
                                                   --------- 
 Finance income                                           10          -         12 
 Finance costs                                             -          -          - 
 Share of loss of investments accounted 
  for using the equity method                            (-)      (874) 
 Impairment of fixed asset investments                 (421)      (843)      (364) 
 Impairment of Intangible Assets                     (2,232)          - 
------------------------------------------------   ---------  ---------  --------- 
 (Loss) before income tax                            (4,639)    (1,665)      (913) 
 Income tax credit                                       129        127        169 
-------------------------------------------------  ---------  ---------  --------- 
 (Loss) for the year from continuing operations      (4,510)    (1,538)      (744) 
-------------------------------------------------  ---------  ---------  --------- 
 Discontinued operations 
 Profit for the year from discontinued 
  operations                                               -          -      1,295 
-------------------------------------------------  ---------  ---------  --------- 
 (Loss) for the year                                 (4,510)    (1,538)        551 
-------------------------------------------------  ---------  ---------  --------- 
 Loss for the year is attributable to: 
 Owners of the parent                                (4,510)    (1,538)        532 
 Non-controlling interests                                 -          -         19 
-------------------------------------------------  ---------  ---------  --------- 
                                                     (4,510)    (1,538)        551 
 ------------------------------------------------  ---------  ---------  --------- 
 Other comprehensive income 
------------------------------------------------   ---------  ---------  --------- 
 Currency translation differences                         85      (139)       (36) 
-------------------------------------------------  ---------  ---------  --------- 
 Total comprehensive (loss) for the year             (4,425)    (1,677)        515 
-------------------------------------------------  ---------  ---------  --------- 
 Total comprehensive (loss) for the year 
  is attributable to: 
 Owners of the parent                                (4,425)    (1,677)        496 
 Non-controlling interests                                 -          -         19 
-------------------------------------------------  ---------  ---------  --------- 
                                                     (4,425)    (1,677)        515 
 ------------------------------------------------  ---------  ---------  --------- 
 Total comprehensive (loss) for the year 
  attributable to owners of the parent arises 
  from: 
 Continuing operations                               (4,425)    (1,677)      (799) 
 Discontinued operations                                   -          -      1,295 
-------------------------------------------------  ---------  ---------  --------- 
                                                     (4,425)    (1,677)        496 
 ------------------------------------------------  ---------  ---------  --------- 
 
 Earnings per share from continuing and 
  discontinued operations attributable to 
  owners of the parent during the year 
 Basic (loss) per ordinary share 
 From continuing operations                          (6.77c)    (2.78c)    (1.26c) 
 From discontinued operations                              -          -      2.14c 
-------------------------------------------------  ---------  ---------  --------- 
 From (loss) for the year                            (6.77c)    (2.78c)      0.88c 
-------------------------------------------------  ---------  ---------  --------- 
 
 Diluted (loss) per ordinary share 
 From continuing operations                          (6.12c)    (2.56c)     (1.14) 
 From discontinued operations                              -          -      1.93c 
-------------------------------------------------  ---------  ---------  --------- 
 From (loss) for the year                            (6.12c)    (2.56c)      0.79c 
-------------------------------------------------  ---------  ---------  --------- 
 

Consolidated and Company's Statement of Financial Position

As at 31 December 2018

 
                                       Group           Group 
                                        2018   2017 Restated 
                                     EUR'000         EUR'000 
   -------------------------------  --------  -------------- 
 Assets 
 Non-current assets 
 Property, plant and equipment           263             312 
 Intangible assets                       996           4,034 
 Investments in subsidiaries               -               - 
 Assets held for sale                    259             680 
 Investments                              31              31 
 Total non-current assets              1,549           5,057 
----------------------------------  --------  -------------- 
 
 Current assets 
 Trade and other receivables           6,517           5,514 
 Income tax recoverable                   57             107 
 Cash and cash equivalents             1,098           1,175 
----------------------------------  --------  -------------- 
 Total current assets                  7,672           6,796 
----------------------------------  --------  -------------- 
 Total assets                          9,221          11,853 
----------------------------------  --------  -------------- 
 
 Equity attributable to owners 
 Share capital                           168             155 
 Share premium account                14,701          14,026 
 Group re-organisation reserve         (541)           (541) 
 Merger relief reserve                     -               - 
 Reverse acquisition reserve              45              45 
 Other Reserve                          (34)               - 
 Foreign currency reserves              (41)           (126) 
 Share option reserve                      -               - 
 Retained earnings                   (9,674)         (5,164) 
----------------------------------  --------  -------------- 
                                       4,624           8,395 
 Non-controlling interest                  -               - 
-------------------------------     --------  -------------- 
 Total equity                          4,624           8,395 
----------------------------------  --------  -------------- 
 
 Liabilities 
 Non-current liabilities 
 Borrowings                                -               - 
 Total non-current liabilities             -               - 
-------------------------------     --------  -------------- 
 
 Current liabilities 
 Trade and other payables              3,786           2,999 
 Deferred taxation                       342             434 
 Borrowings                              469              25 
 Total current liabilities             4,597           3,458 
----------------------------------  --------  -------------- 
 Total liabilities                     4,597           3,458 
----------------------------------  --------  -------------- 
 Total equity and liabilities          9,221          11,853 
----------------------------------  --------  -------------- 
 

Consolidated and Company's Statement of Cash Flows

For the year ended 31 December 2018

 
                                                                       Group     Group 
                                                                        2018      2017 
     Notes                                                           EUR'000   EUR'000 
 Cash Flow from operating activities 
 Continuing operations 
 Cash used in operations                                             (1,105)   (1,285) 
 Income tax received/(paid)                                              (-)      (64) 
------------------------------------------------------------------  --------  -------- 
 Net cash used in operating activities                               (1,105)   (1,346) 
------------------------------------------------------------------  --------  -------- 
 
 Cash flow from investing activities 
 Investment in associate                                                (35)     (465) 
 Purchase of intellectual property                                      (33)     (327) 
 Purchase of property, plant and equipment                              (46)     (193) 
 Refund of Escrow                                                          -         - 
 Interest received                                                        10         - 
-------------------------------------------------------  -------    --------  -------- 
 Net cash used in investing activities                                 (104)     (985) 
------------------------------------------------------------------  --------  -------- 
 
 Cash flow from financing activities 
 Proceeds from issuance of ordinary shares                               687         - 
 Proceeds from invoice discounting                                       469 
 Repayments on borrowings                                               (25)      (35) 
 Net cash generated by financing activities                            1,132      (35) 
------------------------------------------------------------------  --------  -------- 
 
 Net increase/ (decrease) in cash and cash equivalents                  (77)   (2,366) 
 Cash and cash equivalents at beginning of year                        1,175     3,541 
 Exchange losses on cash and cash equivalents                              -         - 
-------------------------------------------------------  -------    --------  -------- 
 Cash and cash equivalents at end of year                              1,098     1,175 
------------------------------------------------------------------  --------  -------- 
 

Consolidated Statement of Changes in Shareholders' Equity

 
 
                                        Re-organisation 
                                              & Reverse     Share     Foreign 
                     Share     Share      acquisition &    Option    currency    Retained                  Non-controlling 
                   capital    premium     other reserve   reserve     reserve    earnings         Total          interests     Total 
                   EUR'000   EUR'000            EUR'000   EUR'000     EUR'000     EUR'000       EUR'000            EUR'000   EUR'000 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 At 1 January 
  2017                 155     14,026             (496)        28          13     (3,294)        10,432                  -    10,432 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 Changes in 
 equity for the 
 year 
 ended 31 
 December 2017 
 (Loss) for the 
  year                   -          -                 -         -           -     (1,538)       (1,538)                  -   (1,538) 
 Currency 
  translation 
  differences            -          -                 -         -       (139)           -         (139)                  -     (139) 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 Total 
  comprehensive 
  (loss) for 
  the year               -          -                 -         -       (139)     (1,538)       (1,677)                (-)   (1,677) 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 Transactions 
 with the 
 owners 
 Shares issued           -          -                 -         -           -           -             -                  -         - 
  Share option 
   provision 
   reversed              -          -                 -      (28)           -          28             -                  -         - 
 Total 
  contributions 
  by and 
  distributions 
  to owners              -          -                 -      (28)           -          28             -                  -         - 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 At 31 December 
  2017 
  as previously 
  stated               155     14,026             (496)         -       (126)     (4,804)         8,755                (-)     8,755 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 Prior year 
  adjustment             -          -                 -         -           -       (360)         (360)                (-)     (360) 
 At 31 December 
  2017 
  after prior 
  year 
  adjustment           155     14,026             (496)         -       (126)     (5,164)         8,395                (-)     8,395 
 Changes in 
 equity for the 
 year 
 ended 31 
 December 2018 
 (Loss) for the 
  year                   -          -                 -         -           -     (4,510)       (4,510)                  -   (4,510) 
 Currency 
  translation 
  differences            -          -                 -         -          85           -            85                  -        85 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 Total 
  comprehensive 
  profit 
  /(loss) for 
  the year               -          -                 -         -          85     (4,510)       (4,425)                  -   (4,425) 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 Transactions 
 with the 
 owners 
 Shares issued          13        675                 -         -           -           -           688                  -       688 
 Purchase of 
  minority 
  Interest               -          -              (34)         -           -           -          (34)                  -      (34) 
 Total 
  contributions 
  by and 
  distributions 
  to owners             13        675              (34)         -           -           -           654                  -       654 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 At 31 December 
  2018                 168     14,701             (530)         -        (41)     (9,674)         4,624                  -     4,624 
---------------  ---------  ---------  ----------------  --------  ----------  ----------  ------------  -----------------  -------- 
 
 

1. General information

Venn Life Sciences Holdings Plc is a company incorporated in England and Wales. The Company is a public limited company listed on the AIM market of the London Stock Exchange. On 18 January 2016, the company also listed on the ESM market of the Irish Stock Exchange. The address of the registered office is 1 Berkeley Street, London, W1J 8DJ.

The principal activity of the Group is that of a Clinical Research Organisation providing a suite of consulting and clinical trial services to pharmaceutical, biotechnology and medical device organisations. The Group has a presence in the UK, Ireland, France, Netherlands, Germany and Singapore.

The financial statements are presented in Euros, the currency of the primary economic environment in which the Group's trading companies operate. The Group comprises Venn Life Sciences Holdings Plc and its subsidiary companies.

The registered number of the Company is 07514939.

2. Earnings per share

(a) Basic

Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

 
                                                          Draft       Audited 
                                                     Year ended    Year ended 
                                                    31 December   31 December 
                                                           2018          2017 
                                                        EUR'000       EUR'000 
 
   Loss from continuing operations 
   attributable to equity holders 
   of the Company (EUR'000)                             (4,425)       (1,677) 
 Total                                                  (4,425)       (1,677) 
------------------------------------------   ----  ------------  ------------ 
 
 Weighted average number of Ordinary 
 Shares in issue                                     65,293,943    60,284,263 
 
 
 

b) Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

Weighted average number of shares used as the denominator :

 
                                                  Draft       Audited 
                                             Year ended    Year ended 
                                            31 December   31 December 
                                                   2018          2017 
 
 Weighted average number of Ordinary 
  Shares in issue                            65,293,943    60,284,263 
 
 Adjustments for calculation of diluted 
  earnings per share: 
 Options                                      6,544,167     4,985,288 
 Warrants                                       418,749       166,666 
-----------------------------------------  ------------  ------------ 
 Total                                       72,256,859    65,436,217 
-----------------------------------------  ------------  ------------ 
 

3. Prior Year adjustment

The adjustment of EUR360,000 to opening retained earnings relates to year end 2016 and earlier periods and is made up of the following two items:

1. As a result of the adoption of IFRS15 a full review of accrued income on all active and completed contracts was undertaken in 2018 and the result was a EUR226,000 correction was required to the year end 2016 retained earnings balance carried forward.

2. A consolidation adjustment was made in 2016 relating to amount of EUR134,000 held in an Escrow account. This consolidation adjustment should have been reversed in 2017 when the escrow account was settled but was over-looked. Consequently, the 2016 retained earnings carried forward are now being corrected.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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