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Novacyt S.A. ("Novacyt", the "Company" or the "Group"): Half Year 2020 Results

Transformational performance set to continue

Regulatory News:

Novacyt (ALTERNEXT: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, announces its unaudited results for the six months ended 30 June 2020 and provides an update on its growth strategy.

Summary highlights

  • H1 2020 sales of €72.4 million and EBITDA of €49.4 million, resulting from the sale of the Company’s market leading PCR COVID-19 test, has transformed Novacyt

  • Performance provides period end cash of €19.7m, following repayment of all debt and significant investment in inventory

  • New strategy implemented to continue growth trajectory and consolidate performance through broadening focus on respiratory and transplant clinical diagnostics

  • Visibility of orders for the Company’s COVID-19 product portfolio suggests H2 2020 performance on track to exceed that of H1 2020

Graham Mullis, Group CEO of Novacyt, commented:

"The first half of 2020 has been transformational for Novacyt, delivering sales growth of more than 900%. The significantly strengthened cashflow has enabled us to also settle all outstanding debt. The Company’s market leading position in COVID-19 PCR testing has resulted in an increased customer base and a reputation for innovation and high performance of our products, enabling us to forge a number of strategic partnerships.

"From this solid foundation, Novacyt has reviewed and accelerated its strategy for delivering long-term value to shareholders, which it expects will be supported by the continued strengthening of its financial position from operational cashflows over at least the next 12-18 months. We have identified specific high value opportunities for growth in the diagnostics market where Novacyt can leverage its innovative position for developing new in vitro diagnostic products. In addition, with new opportunities created by an increased demand for diagnostics and investment in the industry, we expect to further boost revenues and profitability through selective and accretive acquisitions. We believe the Company is well placed to deliver on our vision of becoming a market leader in respiratory and transplant clinical diagnostics."

Financial highlights

  • Group consolidated unaudited revenue increased over 900% to €72.4m (H1 2019: €7.2m)

  • Primerdesign revenue increased over 2,000% to €70.6m (H1 2019: €3.3m) due to the success of the COVID-19 product portfolio

  • Group gross margin strengthened to 83%, delivering a gross profit of €60.3m, an increase of 20% from H1 2019 (63%)

  • Primerdesign maintained its strong gross margin, delivering 85% in H1 2020 (H1 2019: 86%), demonstrating strong control of margins as the business is scaled

  • Group EBITDA of €49.4m (H1 2019: €0.2m)

  • Operating profit of €48.3m compared to a loss of €0.7m in H1 2019, driven by the growth in sales in molecular products business

  • Profit after tax of €40.2m compared to a loss of €1.2m in H1 2019

  • Cash at 30 June 2020 of €19.7m after paying down all long-term debt and significant working capital investment made into stock to ensure the continuity of supply to meet the demand for COVID-19 tests

€'000

 

H1 2020

H1 2019

 

 

Consol

Consol

Revenue

 

72,374

7,223

Gross profit

 

60,265

4,580

Gross margin %

 

83%

63%

EBITDA

 

49,365

153

Recurring operating profit / (loss)

 

48,672

(598)

Operating profit / (loss)

 

48,324

(664)

Profit / (loss) after tax

 

40,195

(1,208)

Loss from discontinued operations

 

-

 

(786)

Profit / (loss) after tax atrributable to the owners

 

40,195

(1,994)

Operational highlights

  • Rapid development of new products to support laboratories and clinicians in the fight against the spread of COVID-19

    • Developed one of the first molecular tests for COVID-19, subsequently received CE Mark accreditation and Emergency Use Authorisation from most major regulatory authorities, including the US Food and Drug Adminstration and the World Health Organization

    • Launch of three new innovative products (Exsig™ Direct, Exsig™ Mag and COVID-HT) to support laboratories through improving workflow efficiency and helping to address the reported shortfall in global manufacturing and supply of extraction reagents

    • Launch of a saliva sampling type to support ease of patient sampling, lower levels of discomfort and demonstrate more reproducible data than other sampling types

    • Developing, together with a partner, a serology (antibody) test to detect past infection of COVID-19, with launch expected in Q4 2020

  • Significant scale-up of the organisation, including increasing manufacturing and supply chain capacity and commercial support with the addition of a number of new hires

  • Collaboration with AstraZeneca, GSK and University of Cambridge to support the UK COVID-19 testing effort

  • Secured a supply contract with the UK Department of Health and Social Care for the Company’s COVID-19 test

  • Signed a number of new and significant strategic partnerships, including a distribution agreement in the US

  • Surveillence programme of the Company’s COVID-19 test to assess different SARS-CoV-2 viral sequences continues to demonstrate 100% detection of more than 64,000 sequences

Post-period highlights

  • Initiation of a 2,000-patient clinical trial by Queen Mary University of London using the Group’s innovative near-patient testing system

  • Launch of respiratory test panel (Winterplex™) to diagnose and distinguish between influenza A&B, RSV and COVID-19

  • Launch of a two-gene target test for COVID-19 to address markets employing this testing approach

Strategy update highlights

  • New strategy to focus on organic, R&D and acquisitive growth in the respiratory and transplant bacterial and viral diagnostic markets

  • Investment in R&D and commercial infrastructure to deliver new products and establish a direct sales force in key markets in the US and across Europe

  • Selective product/technology and company acquisitions to generate additional revenues and profits to offset potential future reductions in COVID-19 revenues and enhance the Group’s trajectory towards becoming a market leader in respiratory and transplant clinical diagnostics

  • Acquisition of specific assets to enable Novacyt to expand its core capabilities whilst maintaining attractive margins

  • Investment in developing new IP portfolio to enhance and secure future value

Outlook

Novacyt’s near-term focus is to deliver strong organic revenue growth in the core business, where the Directors believe demand for its products will continue to grow into at least H1 2021 as COVID-19 testing continues. In the medium-term, Novacyt expects to leverage its reputation, market intelligence and relationships developed during the COVID-19 response to commercialise new products, as well as expand its presence in respiratory and transplant clinical diagnostics, to meet significant unmet market needs. The Directors expect to supplement the Company’s product portfolio and expand its core capabilities through executing selective and accretive M&A at the right time.

The Directors reiterate guidance announced on 13 July 2020; given the visibility of orders, extended contracts and the launch of new COVID-19 related products, revenue for the second half of the year is expected to be greater than the first half of the year and margins to be at least at a similar level. Full year revenues are expected to exceed €150 million and EBITDA profitability to exceed €100 million. The Company expects this rate of financial performance to extend into the first half of 2021. The Directors remain confident in and excited by the prospects of the business, not only for the short-term, but also for the longer-term.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

About Novacyt Group

The Novacyt Group is an international diagnostics business generating an increasing portfolio of in vitro and molecular diagnostic tests. Its core strengths lie in diagnostics product development, commercialisation, contract design and manufacturing. The Company's lead business units comprise of Primerdesign and Lab21 Products, supplying an extensive range of high-quality assays and reagents worldwide. The Group directly serves oncology, microbiology, haematology and serology markets as do its global partners, which include major corporates.

For more information please refer to the website: www.novacyt.com

Chief Executive Officer’s Review

Operational review

The COVID-19 pandemic has highlighted Novacyt’s intrinsic ability to design, develop and rapidly scale-up market leading molecular in vitro diagnostic (IVD) tests which enable it to compete successfully at a global level. The Company has significantly increased its customer base, has built a recognised reputation for the performance of its products, formed multiple new and significant strategic partnerships and established an influential position in UK diagnostic testing. This solid foundation, combined with a transformational financial performance during H1 2020 as a direct result of the continuing success of the Company’s COVID-19 product portfolio, has enabled Novacyt to eliminate all long-term debt and greatly enhance and accelerate its strategy for delivering long-term value to shareholders, further detail of which is provided in this report.

Molecular diagnostics

During H1 2020, Novacyt’s molecular diagnostics division, Primerdesign, delivered revenue growth of over 2,000% to €70.6m compared to H1 2019 revenue of €3.3m. This growth reflects the successful launch of a number of diagnostics products for COVID-19, including one of the first polymerase chain reaction (PCR) tests to combat the outbreak.

Market leading PCR test for COVID-19

In response to the emerging COVID-19 emergency, Novacyt made the strategic decision to develop a diagnostic test for SARS-CoV-2 in early January 2020. The Company launched the test in late January 2020 and subsequently received clinical use approval from a number of leading global regulatory authorities, including CE Mark accreditation and Emergency Use Authorisation (EUA) from the US Food and Drug Adminstration (FDA) and the World Health Organization (WHO). This rapid development of a test for COVID-19 positioned Novacyt at the forefront of the global response to the spread of the virus.

Significant demand and capacity expansion

To meet the unprecedented demand for the test following its launch, Novacyt initiated a programme to significantly scale-up the organisation. The Company engaged Chartwell Consulting, a specialist in rapid process improvement, in early April 2020 to manage and support the planning, procurement and logistics for the capacity increase. This included increasing the Company’s own production capacity at the Primerdesign site in Southampton, UK, as well as entering into contract manufacturing partnerships. The Company also needed to manage suppy chain capacity, which included expanding its key raw material supplier base to develop a long-term and sustainable high volume supply of its tests.

Established an influential position in UK diagnostic testing

The COVID-19 pandemic has highlighted the importance of diagnostics as part of the treatment regime across the globe. In the UK, the government has a goal of supporting and creating a national diagnostics industry that can compete on the global stage. During H1 2020, Novacyt has been actively engaged with the UK Department of Health and Social Care (DHSC) in supporting this goal. This was demonstrated in April 2020 through a contract with the DHSC for the supply of its COVID-19 test and separately a collaboration with AstraZeneca, GSK and the University of Cambridge for high-throughput COVID-19 testing. The Company has also partnered with multiple private testing laboratories who support various industries as they try to manage and maintain their businesses.

Having established an influential position in UK diagnostic testing during the pandemic, Novacyt continues to be actively engaged with the DHSC and remains well positioned to support future national testing initiatives.

Product portfolio expansion in COVID-19 and respiratory diseases

Using Primerdesign’s in-house expertise and specialisation in rapid development of molecular solutions, Novacyt continued to evolve its offering during H1 2020 with a range of new products to support the application of the Company’s COVID-19 testing solution in a number of scenarios. This included various formats of the Company’s first generation test to support traditional and high-throughput laboratory settings (exsig™ Mag and COVID-HT), direct-to-PCR products (exsig™ Direct) which significantly reduce the time-to-result by reducing the cumbersome pre-analytical extraction phase of testing, a two-gene test to support testing in markets that mandate a two-gene testing approach, near-patient testing solutions, and a respiratory test panel aimed at supporting testing during the winter season (Winterplex™).

In July 2020, Queen Mary University of London announced the initiation of a 2,000-patient clinical trial using Novacyt’s innovative near-patient testing system, which can deliver a result within an hour. The study is investigating whether daily COVID-19 testing reduces the infection rate, morbidity and mortality in the high-risk care home population. Novacyt believes daily testing has the potential to reduce the transmission of SARS-CoV-2 in the high-risk care home population and in a wider community setting.

The Company has also been investing in its rapid testing instrumentation platforms, q16 and q32, which allow for efficient and high-performance testing in near-patient environments. By the end of the year, Novacyt expects to manufacture and install an increasing number of instruments and will have capacity for significantly more as demand builds. As part of its investment, the Company is further improving the operational workflow of its reagents with these instrument platforms, reducing cycle times significantly below 60 minutes and reducing the level of operator involvement.

Continued high-performance of products

The success of the Company’s COVID-19 test has been built around robust design principles and the selection of a gene target that has so far demonstrated exceedingly low levels of genetic mutation and variation. To date, the gene target has been analysed against over 64,000 individual COVID-19 viral sequences and demonstrated 100% detection. The Company’s recently launched two-gene target test for COVID-19 has also been added to this weekly surveillance monitoring programme to demonstrate continued efficacy of the test to diagnose SARS-CoV-2.

Expansion of product portfolio in respiratory and transplant bacterial and viral diseases

As part of its renewed strategy, Novacyt plans to build its international presence with an increased portfolio of IVD products for clinical use in respiratory and transplantation markets. A new R&D pipeline of products is being developed to enable Novacyt to build upon its reputation established in COVID-19 testing. The Company will continue to seek immediate approval for IVD classification of new products, as well as developing current, specific products from Primerdesign’s extensive research-use-only range to establish a portfolio of high value, clinically approved diagnostics.

Protein diagnostics

During H1 2020, the Company’s protein diagnostics business, comprising of Lab21 Healthcare and Microgen Bioproducts, was significantly influenced by the COVID-19 pandemic and saw a reduction in global demand for its products. As a result, Novacyt engaged Chartwell during the period to focus on operational efficiencies in manufacturing to improve future outputs and lower the cost of goods.

The Company has also developed a plan to expand its Pathflow® brand of products and expects to launch a number of additional tests over the next few months to expand its rapid testing portfolio for infectious diseases.

The Company continues to make good progress in the development and launch of a central lab-based serology test for the detection of the IgG antibody to COVID-19. To date, the product has demonstrated significant levels of sensitivity and specificity for detection of IgG in patients 14 days after testing positive for COVID-19 by a PCR test. Novacyt now expects to launch a CE Mark approved product by the end of September 2020.

Strategy update

Next stage of growth

The Directors have identified specific growth opportunities in the large, fast-growing diagnostics market. Supported by its core clinical diagnostics capabilities of IVD product development, manufacturing, regulatory and commercialisation, the Company remains committed to creating shareholder value through its three-pillar strategy of organic, R&D and acquisitive growth, which will be focused within the respiratory and transplant bacterial and viral diagnostic markets.

Respiratory and transplant are both high-margin, fast-growing IVD markets where the Company already has expertise, including COVID-19 and EBV and BKV products launched last year. Novacyt intends to leverage the new customers and brand position it has established during the COVID-19 pandemic to further penetrate these markets through 2021 and beyond. Importantly, Novacyt will use the skills, infrastructure and experience of both its business divisions (Primerdesign and Lab21) to deliver solutions that utilise the Group’s protein and molecular diagnostic capabilities.

The growth strategy aims to enable Novacyt to continue to grow the size of the core business but also to accelerate this through strategic acquisitions. The Directors believe the strong demand for COVID-19 diagnostic testing will continue through the next few months and well into next year, which will underpin the ongoing financial transformation of the Group and its trajectory towards becoming a market leader in respiratory and transplant clinical diagnostics.

The Company intends to invest both organically and through M&A in establishing a direct sales force in certain markets. Novacyt plans to establish a strong commercial infrastructure in the UK, where a significant investment in the diagnostics market is taking place. In addition, it is in the process of evaluating the best model to operate in the US, the world’s largest IVD market. It is also considering certain key mainland European markets. In the rest of the world, Novacyt will continue to develop its successful distributor and partnership sales model.

Novacyt has demonstrated during the last six months the financial value and profitability it can generate in the right clinical IVD markets with a low-cost base. To achieve additional revenue, the Company will continue to invest in R&D to drive new product development. Novacyt also plans to accelerate revenues and additional profitability through selective and accretive acquisitions. These actions are expected to replace any potential lost revenues from a future decline in COVID-19 testing.

Market dynamics to support strategy

The focus on the importance of diagnostics, as a result of the COVID-19 pandemic, is leading to increased opportunities and anticipated significant new investment in the sector.

IVD market

With an estimated global market size of $69.5 billion1 in 2020, the IVD industry is set to experience steady growth and continued consolidation. Growing at a 5-year CAGR of 5%, some analysts expect IVD to top $110 billion1 by 2030. The industry is expected to see growth in profits as consolidation and technological advancements lead to greater economies of scale. Growth drivers include an aging world population, increased technological innovation leading to increased personalisation of medicine and care, involvement in healthcare by technology companies, rising living standards in developing nations, industry consolidation and an increase in the incidence of chronic and infectious diseases.

Centralised and decentralised testing markets

COVID-19 continues to present Novacyt with a significant opportunity to place rapid mobile instruments where the shortage of testing capacity and limitations of laboratory-based testing is driving healthcare away from large centralised platforms into decentralised more flexible platforms. Beyond COVID-19, Novacyt believes there is the potential for a long-term shift in testing policy towards decentralisation. With the launch of Novacyt’s near-patient testing system in July 2020, the Company is well positioned to address this drive towards rapid, decentralised testing.

The pandemic has also highlighted the limitations of closed testing systems (platforms which are only compatible with tests supplied by the instrument manufacturerer) in centralised laboratories where availability of tests and related consumables has been limited and has, therefore, impacted utilisation of testing capacity. The Company believes healthcare providers will identify a need to have more open systems (platforms which are compatible with tests from a variety of suppliers) along with a decentralised testing policy. Both shifts in policy would play to core strengths of Novacyt.

1 BIS Research; Global In Vitro Diagnostic Market, July 2020

Financial review

Revenue

Unaudited revenues for the first half of 2020 were €72.4m compared to revenues for 2019 of €7.2m, representing a growth rate of over 900% predominantly driven by the strong growth from Primerdesign. This follows the successful development and launch of one of the world’s first molecular tests for COVID-19 in January 2020.

Gross margin

Gross profit has shown continued positive momentum, increasing to €60.3m (83%) compared to €4.6m (63%) in the first half of last year. This margin (83%) is in line with Primerdesign’s historic margin and, therefore, as Primerdesign has increased its overall share of Group revenue, it has driven up the overall Group percentage margin.

Primerdesign maintained its strong gross margin delivering 85% in H1 2020, demonstrating that gross margin can be maintained as the business is scaled.

The Lab21 Products business unit has been significantly impacted by COVID-19 as many of its customers focused their attention on COVID-19 testing resulting in a significant year-on-year revenue and margin decline. However, the business entered H2 with a strong order book and expects to see sales and margin improve towards the end of 2020.

EBITDA

The Group continued its profitability trend delivering an EBITDA of €49.4m in the first half of 2020. The underlying Primerdesign EBITDA margin has increased to over 80% from 40% in H1 2019 when management charges are excluded, demonstrating that the division can be scaled without significant additional overheads. With Primerdesign delivering approximately 98% of Group revenue in H1 2020 at 85% gross margin, its continued success contributes substantially to the Group’s positive EBITDA as the effect of increasing Primerdesign revenues as a percentage of overall Group revenues has been to enhance the overall profitability of the Group.

To support the substantial growth seen by the Group in 2020, investment has been made in overheads including the hiring of new staff and additional facilities spend to maximise manufacturing output. As a percentage of revenue these incremnental costs are negligible, which is reflected in the Group delivering an EBITDA margin of 68% in H1 2020.

Operating Profit

The Group delivered an operating profit of €48.3m compared with a H1 2019 loss of €0.7m. Year-on-year exceptional charges and depreciation/amortisation costs are only €0.2m higher in 2020, driven by the impairment of Omega ID acquisition intangible assets. The key driver for the movement from a loss in 2019 to a profit in 2020 is driven by the EBITDA profitability of €49.4m.

Net Profit After Tax

Net proft after tax increased to €40.2m in H1 2020 from a loss of €2m in H1 2019. Due to the settlement of all outstanding Group debt in June 2020, borrowing costs increased year-on-year by €1.7m to €2.3m. As a result of the profits delivered by the Group in H1 2020, a UK corporation tax provision of €5.9m has been made at 30 June 2020, which was subsequently paid in July 2020.

Balance Sheet

€'000

Jun-20

Dec -19

 

€'000

Jun-20

Dec -19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

15,911

15,918

 

Share capital and premium

66,721

61,711

Other non-current assets

7,225

8,245

 

Retained earnings

(7,959)

(47,117)

Total non-current assets

23,136

24,163

 

Total equity

58,762

14,594

 

 

 

 

 

 

 

Inventories

15,558

2,439

Borrowings (> 1 yr)

-

6,137

Trade and other receivables

28,470

2,168

 

Lease liabilities - long-term

2,043

2,356

Other current assets

1,091

420

 

Other provisions and long-term liabilities

293

289

Cash and cash equivalents

19,720

1,805

 

Total non-current liabilities

2,336

8,782

Total current assets

64,839

6,832

 

 

 

 

 

 

 

Borrowings (< 1 yr)

-

2,189

 

 

 

Lease Liabilities - short-term

225

268

 

 

 

 

Trade and other liabilities

16,296

4,591

 

 

 

 

Other provisions and short-term liabilities

10,356

641

 

 

 

 

Total current liabilities

26,877

7,689

 

 

 

 

 

 

 

Assets classified as held for sale

-

70

 

Liabilities classified as held for sale

-

-

 

 

 

 

 

 

 

TOTAL ASSETS

87,975

31,065

 

TOTAL EQUITY AND LIABILITIES

87,975

31,065

The Group held €19.7m of cash on the balance sheet at 30 June 2020 compared to €1.8m at 31 December 2019. This large increase in cash is predominantly driven by the significant upturn in trading that has delivered substantial profits to the Group, resulting in an operating cash inflow of €24.6m. Cash outflows from financing activities totalled €5.6m, made up of a €2.9m cash inflow from the conversion of warrants and an outflow of €8.5m on settling all Group debts/borrowings. Capital expenditure in H1 2020 was minimal at €0.2m as infrastructure investment had been made in prior periords.

Inventory has increased by €13.2m to €15.6m from €2.4m at 31 December 2019. The majority of the inventory balance relates to building stock to meet the needs of the COVID-19 pandemic and allow Novacyt to fulfil customer demand immediately. The lead time for obtaining some raw materials is significant, so bulk orders have been placed to ensure there are no supply chain issues, which resulted in the higher raw materials balance at 30 June 2020.

Trade receivables have increased since the year end by €26.3m to €28.5m driven by the ramp-up in sales as the Group responded to the COVID-19 pandemic with the launch of its tests. Approximately 90% of the debtor book as at 30 June 2020 was current and related to sales in June 2020. Prepayments have increased since 31 December 2019 by €0.7m driven by upfront payments for stock (consumables and instruments) that were not received in H1 2020.

At 30 June 2020, the Company is debt free after settling all outstanding amounts, such that net debt decreased from €8.3m at 31 December 2019 to nil.

Short-term provisions have increased by €4.1m since 31 December 2019 to €4.2m at 30 June 2020, driven by an increase in the long-term incentive plan liability, as a result of the Company’s share price increasing since the start of the year.

Trade and other liabilities has increased from €4.6m since 31 December 2019 to €16.3m at 30 June 2020 in line with the growth in the business. Trade payables has increased to €3.6m and accrued invoices covering predominantly third-party manufacturing costs has increased to €7.6m, from €2.1m and €0.9m, respectively. In order to meet market demand for the COVID-19 test, the Group took the early decision to outsource elements of manufacturing to allow the business to be scaled up quickly. Tax liabilities in the form of Value Added Tax (VAT) payable in the UK has increased by €4.6m to €4.7m from €0.1m at 31 December 2019.

For the first time, the Group has been able to benefit from the UK Patent Box regime, which provides a special reduced corporation tax rate to incentivise research and development by taxing patent revenues differently from other commercial revenues. Subject to a number of adjustments, the effective rate of tax on profits derived from the sale of products subject to patents is close to 10% rather than the normal UK tax rate of 19%. The Patent Box rate is normally claimed once a patent has been granted, but it is expected that the Group’s products will fall within a specific exemption allowing the reduced rate to be claimed immediately. Due to the uncertainty over the details of the full calculation, for current reporting purposes a reduced corporation tax rate of 12% on profits from patented products has been assumed. As a result of the profit delivered in H1 2020, the Group booked a UK corporation tax provision of €5.9m.

Consolidated income statement as at 30 June 2020

Amounts in '000 €

Notes

(Unaudited)
Six month
30 June
2020

(Unaudited)
Six month
30 June
2019

Continuing Operations

 

 

Revenue

4, 5

72,374

7,223

 

Cost of sales

6

- 12,109

- 2,643

Gross profit

60,265

4,580

 

Sales, marketing and distribution expenses

- 1,966

- 1,317

Research and development expenses

- 593

- 229

General and administrative expenses

- 9,035

- 3,639

Governmental subsidies

-

7

 

Operating profit/loss before exceptional items

48,672

- 598

 

Other operating income

7

5

57

Other operating expenses

7

- 353

- 123

 

Operating profit/loss after exceptional items

48,324

-664

 

Financial income

8

87

36

Financial expense

8

- 2,292

- 579

 

Profit/loss before tax

46,120

- 1,208

 

Tax (expense)/income

9

- 5,924

-

 

Profit/loss after tax from continuing operations

40,195

- 1,208

 

Loss from discontinued operations

-

- 786

 

Profit/loss after tax attributable to owners of the company

40,195

- 1,994

Profit/loss per share (€)

10

0.61

-0.05

Profit/diluted loss per share (€)

10

0.61

-0.05

 

Profit/loss per share from the continuing operations (€)

0.61

-0.03

Profit/diluted loss per share from the continuing operations (€)

0.61

-0.03

 

Loss per share from the discontinued operations (€)

0.00

-0.02

Diluted loss per share from the discontinued operations (€)

0.00

-0.02

The June 2019 consolidated income statement is presented to reflect the impacts of the application of IFRS 5 relative to discontinued operations, by stating the NOVAprep activity on a single line "Loss from discontinued operations".

Consolidated statement of comprehensive income as at 30 June 2020

Amounts in '000 €

Notes

(Unaudited)
Six month
30 June
2020

(Unaudited)
Six month
30 June
2019

 

 

Profit/loss after tax

40,195

- 1,994

 

 

Items that may be reclassified subsequently to profit or loss:

Translation reserves

- 1,959

- 2

 

Total comprehensive profit/loss

38,236

- 1,996

 

Comprehensive profit/loss attributable to:

 

Owners of the company (*)

38,236

- 1,996

(*) There are no non-controlling interests.

Statement of financial position as at 30 June 2020

Amounts in '000 €

Notes

(Unaudited)
Six month
30 June
2020

(Audited)
Year ended
31 December
2019

 

 

 

Goodwill

15,911

15,918

Other intangible assets

3,514

4,313

Property, plant and equipment

3,221

3,478

Non-current financial assets

112

240

Other long-term assets

377

214

Non-current assets

23,136

24,163

 

Inventories and work in progress

11

15,558

2,439

Trade and other receivables

12

28,470

2,168

Tax receivables

-

4

Prepayments

1,081

406

Short-term investments

10

10

Cash & cash equivalents

13

19,720

1,805

Current assets

64,839

6,832

 

Assets classified as held for sale

-

70

 

Total assets

87,975

31,065

 

Bank overdrafts and current portion of long-term borrowings

14

-

2,189

Lease liabilities – short-term

 

 

225

 

268

Provisions – short-term

15

4,237

50

Trade and other liabilities

16

16,296

4,591

Tax liabilities

5,650

-

Other current liabilities

469

591

Total current liabilities

26,877

7,689

 

Net current assets / (liabilities)

37,962

-857

 

Borrowings and convertible bond notes

14

-

6,137

Lease liabilities – long-term

 

 

2,043

 

2,356

Provisions – long-term

15

215

240

Deferred tax liabilities

78

 

49

Total non-current liabilities

2,336

8,782

 

Total liabilities

29,213

16,471

 

Net assets

58,762

14,594

Statement of financial position as at 30 June 2020

Amounts in '000 €

Notes

(Unaudited)
Six month
30 June
2020

(Audited)
Year ended
31 December
2019

 

 

 

Share capital

17

4,708

3,873

Share premium account

62,151

58,012

Own shares

- 138

- 174

Other reserves

- 5,265

- 3,306

Equity reserve

1,323

401

Retained losses

- 4,017

- 44,212

Total equity - owners of the company

58,762

14,594

 

Total equity

58,762

14,594

Statement of changes in equity as at 30 June 2020

Amounts in '000 €

Other group reserves

 

Share capital

Share premium

Own shares

Equity reserves

Acquisition of the shares of Primerdesign

Translation reserve

Other comprehensive income on retirement benefits

Total

Retained loss

Total equity

 

 

Balance at 1 January 2019

2,511

58,249

- 178

422

- 2,948

139

- 11

- 2,820

- 38,046

20,138

Translation differences

-

-

-

-

-

- 486

-

- 486

-

- 486

Loss for the period

-

-

-

-

-

-

-

-

- 6,558

- 6,558

Total comprehensive loss for the period

-

-

-

-

-

- 486

-

- 486

- 6,558

- 7,044

Issue of share capital

-

- 180

-

-

-

-

-

-

-

- 180

Own shares acquired/sold in the period

-

-

4

-

-

-

-

-

-

4

Other changes

1,362

-57

-

-21

-

-

-

-

392

1,676

Balance at 31 December 2019

3,873

58,012

- 174

401

- 2,948

- 347

- 11

- 3,306

- 44,212

14,594

Translation differences

-

-

-

-

-

- 1,959

-

- 1,959

-

- 1,959

Profit for the period

-

-

-

-

-

-

-

-

40,195

40,195

Total comprehensive income / (loss) for the period

-

-

-

-

-

- 1,959

-

- 1,959

40,195

38 236

Issue of share capital

835

4,139

-

-

-

-

-

-

-

4,974

Own shares acquired/sold in the period

-

-

36

-

-

-

-

-

-

36

Other changes

-

-

-

922

-

-

-

-

-

922

Balance at 30 June 2020

4,708

62,151

- 138

1,323

- 2,948

- 2,306

-11

-5,265

-4,017

58,762

Statement of cash flows as at 30 June 2020

Amounts in '000 €

Notes

(Unaudited)
Six month
30 June
2020

(Unaudited)
Six month
30 June
2019

 

 

 

 

 

 

 

Net cash from operating activities

18

 

24,603

 

- 577

 

Investing activities

 

Proceeds on disposal of property, plant and equipment

 

3

-

Purchases of patents and trademarks

 

- 43

- 158

Purchases of property, plant and equipment

 

- 268

- 200

Purchases of trading investments

 

78

6

Acquisition / sale of subsidiaries net of cash

 

7

- 278

Net cash generated from investing activities

 

 

- 223

 

- 630

 

Investing cash flows from discontinued activities

 

-

- 25

Investing cash flows from continuing operations

 

- 223

- 605

 

Repayments of borrowings and other financial liabilities

14

- 5,991

- 993

Proceeds on issue of borrowings and bond notes

 

-

2,036

Proceeds on issue of shares

 

2,908

- 69

Disposal (purchase) of own shares – Net

36

- 2

Variation of other short-term financing facilities

- 775

-

Paid interest expenses

- 1,808

- 290

Net cash generated from financing activities

 

- 5,630

 

682

 

Financing cash flows from discontinued activities

-

-

Financing cash flows from continuing operations

- 5,630

682

 

Net increase/(decrease) in cash and cash equivalents

 

18,750

 

- 525

 

Cash and cash equivalents at beginning of year

1,805

1,132

Effect of foreign exchange rate changes

- 835

- 9

Cash and cash equivalents at end of period

 

19,720

 

598