ESPERITE N.V. (ESP) publishes its half-year report. Revenues, results and consolidated equity were impacted by adverse market conditions on the stem cell business.
ESPERITE N.V. (ESP) publishes its half-year report. Revenues, results and consolidated equity were impacted by adverse market conditions on the stem cell business.
CEO, Frédéric Amar, has converted part of his loan notes into 2.5 million shares to support the business and L1 Capital has continued financing the Company.
Amsterdam, The Netherlands – 30 June 2019
Esperite NV (Euronext: ESP, “Esperite” or “the Group”) has published its financial results (unaudited) for the period of six months ended June 30, 2018 showing a decrease in total revenue to EUR 5,3 million, and cost of sales maintained at 58 %.
The negative EBITDA of EUR -4,8 million was balanced by the external financing which is expected to support the on-going development.
CryoSave is continuing to consolidate its distribution network and reduce its cost base.
Even though, the restructuring and consolidation of the different activities have lead to a reduction of the current OPEX, provisions for VAT claims have been made in Bulgaria leading to a stable OPEX figure of EUR 7,9 million.
Despite that, the predictive medicine and R&D activities remain promising.
Genoma Swiss Biotechnology’s unique proprietary technology allowed the Group to launch successfully a new development of its new Diagnostic System for Genetic Clinical Laboratories, AGAATA Dx, which now offers CE-IVD diagnostic tests in oncology especially for breast cancer and colorectal cancer and has machine learning capabilities.
The Cell Factory has launched its second generation of EV drugs for future treatment of stroke and Crohn disease.
Frédéric Amar, CEO of Esperite Group, declares: “Esperite has continued to experience turbulent headwind. Our goal is to focus on our unique and advanced technology in predictive medicine.”
Amsterdam, The Netherlands – 30 June 2019
About ESPERITE
ESPERITE Group, listed at Euronext Amsterdam and Paris, is a leading international company in regenerative and predictive medicine established in 2000.
To learn more about the ESPERITE Group, or to book an interview with CEO Frederic Amar: +31 575 548 998 - ir@esperite.com or visit the websites at www.esperite.com, www.genoma.com and www.cryo-save.com.
Financial Review
(all amounts in millions of Euro)
Revenue
Consolidated revenue decreased by 36 % to EUR 5,3 million due to adverse market conditions on the stem cell business and lack of financial resources to develop at a higher pace the predictive medicine entities of the Group.
Result
Gross profit margin is now 58 % compared to 59% over the same period last year.
Operating expenses stand at EUR 7,9 million like last year because Cryo Save Bulgaria has booked a provision of EUR 1.4 million for a VAT claim challenged in Court by the local fiscal authorities.
Research and development cost are mostly capitalized.
EBITDA for the first half year decreased from EUR -3,0 million negative over the first half year of 2017 to EUR -4.8 million negative over the same period in 2018.
Thanks to the new financing, the Group was still able to finance this result.
The sale of the loss making subsidiary Cryo Save Labs as well as the write off of the negative net equity of several subsidiaries has generated extra depreciations and finance costs of EUR 3,3 million over the period.
External financing
On 8 March 2017, Esperite secured external financing of up to EUR 9 million with L1 Capital to support its commercial activity and development of innovative technologies. The total financing can reach up to EUR 13 million upon exercise of share subscription warrants by the investor.
On the first half of 2018, L1 Capital has provided Esperite with 8 tranches of financing amounting to Euro 3.75 million. No warrant has been exercised.
Financial Position
Total assets amount to EUR 28,2 million. Properties, plants and equipment decreased by EUR 3,7 million. Trade and other receivables decrease from EUR 7,1 million to EUR 5,7 million due to decreased revenue levels.
Total liabilities amount to EUR 31,2 million. They include EUR 11,3 million of long term differed revenue from the regenerative medicine activity and EUR 12,8 million of trade payables.
Equity decreased by EUR 4 million, to EURO -3 million. The net loss amounting to EUR – 9 million was partially offset by equity investment from L1 Capital and several loan conversions.
Cash Flow
The operational cash flow decreased mainly due to the operational losses incurred in the period under review.
The cash flow from financing activities relates to the investments made by L1 Capital.
Principal risks and uncertainties
Pages 28 - 39 of Esperite’ s Financial Annual report 2017 include an extensive overview of the Group’s principal risks and uncertainties, which are also applicable for the first six months of 2018.
Declaration of Management
The Chief Executive Officer declares that, as far as he is are aware and to the best of his knowledge, the financial statements in this half year report, made up according to the applicable standards for financial statements, give a true and fair view of the equity, financial position and the results of the Group and its consolidated companies. The CEO further declares that this report to the shareholders gives a true and fair view on the information that has to be contained therein.
Amsterdam, The Netherlands, 30 June 2019
Frederic Amar, Chief Executive Officer
Condensed consolidated interim financial statements
These condensed consolidated interim financial statements are unaudited.
Condensed consolidated statement of income in thousands of euro For the six months ended 30 June | ||
2018 | 2017 | |
Revenue | 5.302 | 8.289 |
Cost of sales | (2.228) | (3.384) |
Gross profit | 3.074 | 4.905 |
Marketing and sales expenses | 2.325 | 2.957 |
Research and development expenses | 73 | - |
General and administrative expenses | 5.504 | 4.927 |
Total operating expenses | 7.902 | 7.884 |
EBITDA | (4.828) | (2.979) |
Depreciation and amortization | (842) | (2.579) |
Operating result | (5.670) | (5.558) |
Finance income | (2.491) | 4.004 |
Finance costs | (826) | 2.337 |
Net finance (costs)/income | (3.317) | 1.667 |
Results relating to equity-accounted investees | (89) | |
Results from deconsolidation | 3.445 | |
Result before taxation | (8.987) | (535) |
Income tax expense/(gain) | (41) | 2.450 |
Result for the period | (8.946) | (2.985) |
Attributable to: - Equity holders of the Company | (8.947) | (2.951) |
- Non-controlling interest | 1 | (34) |
Result for the period | (8.946) | (2.985) |
Earnings per share (in euro cents) | ||
- Basic | (33,1) | (21,3) |
- Diluted | (33,1) | (21,3) |
Condensed consolidated statement of comprehensive income
in thousands of euro
For the six months ended 30 June
2018 | 2017 | |
Result for the period | (8.947) | (2.985) |
Other comprehensive income Foreign currency translation differences | (21) | 31 |
Other comprehensive income for the period | (21) | 31 |
Total comprehensive income for the period | (8.968) | (2.954) |
Attributable to: - Equity holders of the Company | (8.968) | (2.920) |
- Non-controlling interest | (34) | |
Total comprehensive income for the period | (8.968) | (2.954) |
Condensed consolidated statement of financial position in thousands of euro, before allocation of net result | ||
30 June 2018 | 31 Dec 2017 | |
Intangible assets | 14.403 | 14.871 |
Property, plant and equipment | 3.094 | 6.752 |
Investments in equity accounted investees | - | 165 |
Derivatives - Trance warrants | - | |
Deferred tax assets | 1.780 | 1.943 |
Trade and other receivables | 1.465 | 1.962 |
Total non-current assets | 20.908 | 25.683 |
Inventories | 248 | 256 |
Trade and other receivables | 5.685 | 7.130 |
Current tax assets | 15 | 120 |
Cash and cash equivalents | 1.336 | 694 |
Total current assets | 7.284 | 8.200 |
Total assets | 28.192 | 33.883 |
Equity Issued share capital | 3.316 | 1.922 |
Share premium reserve | 50.321 | 46.130 |
Legal reserve | 272 | 272 |
Revaluation reserve | (4.593) | - |
Translation reserve | (1.949) | (1.907) |
Retained earnings | (49.954) | (45.015) |
Equity attributable to equity holders of the Company | (2.587) | 1.400 |
Non-controlling interest | (430) | (430) |
Total equity | (3.017) | 970 |
Liabilities Borrowings | 4.551 | 5.661 |
Provision for negative equity investees | - | |
Deferred revenue | 11.347 | 11.347 |
Net employee defined benefit liabilities | 689 | 689 |
Deferred tax liabilities | 522 | 568 |
Other liabilities | 74 | 92 |
Total non-current liabilities | 17.183 | 18.357 |
Borrowings | 3 | 459 |
Derivative Tranche warrant | - | - |
Trade and other payables | 12.841 | 13.041 |
Deferred revenue | 1.000 | 1.000 |
Current tax liabilities | 182 | 54 |
Total current liabilities | 14.026 | 14.554 |
Total liabilities | 31.209 | 32.911 |
Total equity and liabilities | 28.192 | 33.883 |
Condensed consolidated statement of changes in equity | |||||
in thousands of euro | |||||
For the six months ended 30 June 2018 | |||||
Issued share capital | Other reserves | Shareholders' equity | Non-controlling interest | Total Equity | |
At 1 January 2018 | 1 922 | -522 | 1 400 | -430 | 970 |
Exchange differences on translating foreign operations | - | 21 | 21 | - | 21 |
Other comprehensive income | - | 21 | 21 | - | 21 |
Result for the period | - | -8 947 | -8 947 | -8 947 | |
Total comprehensive income | 1 922 | -9 448 | -7 526 | -430 | -7 956 |
Transactions with owners: | |||||
* Issue of shares | 1 394 | 3 545 | 4 939 | - | 4 939 |
* Share-based payments | - | - | - | - | |
* Convertible loan bond | - | - | - | - | - |
* Other | - | - | - | - | |
Total transactions with equity holders of the Company | 1 394 | 3 545 | 4 939 | - | 4 939 |
At 30 June 2018 | 3 316 | -5 903 | -2 587 | -430 | -3 017 |
For the six months ended 30 June 2017 | |||||
Issued share capital | Other reserves | Shareholders' equity | Non-controlling interest | Total Equity | |
At 1 January 2017 | 1 038 | 5 901 | 6 939 | -268 | 6 671 |
Exchange differences on translating foreign operations | - | 31 | 31 | - | 31 |
Other comprehensive income | - | 31 | 31 | - | 31 |
Result for the period | - | -2 951 | -2 951 | -34 | -2 985 |
Total comprehensive income | - | -2 920 | -2 920 | -34 | -2 954 |
Transactions with owners: | |||||
* Issue of shares | 349 | 2 963 | 3 312 | - | 3 312 |
* Share-based payments | - | 57 | 57 | - | 57 |
* Convertible loan bond | - | - | - | - | - |
* Other | - | 82 | 82 | - | 82 |
Total transactions with equity holders of the Company | 349 | 3 102 | 3 451 | - | 3 451 |
At 30 June 2017 | 1 387 | 6 083 | 7 470 | -302 | 7 168 |
Condensed consolidated statement of cash flows For the six months ended 30 June | 2018 | 2017 |
(in thousands of euro) | ||
Cash flows from operating activities | ||
Result for the period | (8.946) | (2.985) |
Adjustments for: | - | |
- Income tax expense | (41) | 2.449 |
- Finance costs | 826 | 2.337 |
- Finance income | 2.491 | (4.004) |
- (Gain)/loss on sale of disposals of PP&E | - | - |
- Depreciation and amortization | 842 | 1.475 |
- Impairment loss on assets | - | 1.104 |
- Share based payment transactions | - | 57 |
- Results relating to equity-accounted investees | - | 89 |
- Results from deconsolidating | - | (3.445) |
(4.828) | (2.923) | |
Movements in working capital | ||
(Increase)/decrease in (non) current trade and other receivables | 1.942 | 1.300 |
(Increase)/decrease in inventories | 8 | 218 |
(Increase)/decrease in current tax assets | (105) | 109 |
Increase/(decrease) in (non) current liabilities | (218) | 99 |
Increase/(decrease) in current tax liabilities | 128 | (116) |
Net cash from operations | (3.073) | (1.313) |
Interest paid | (9) | - |
Interest received | 46- | 74 |
Income taxes received | (97) | (38) |
Net cash from operating activities | (3.133) | (1.277) |
Cash flows from investing activities | ||
Acquisition spending | - | (180) |
Purchase of property, plant and equipment | - | (169) |
Capitalized internally developed intangibles and purchase of other intangibles | -) | (307) |
Disposals of non-current assets | - | - |
Net cash (used in)/generated by investing activities | - | (656) |
Cash flows from financing activities | ||
Repurchase of own shares | - | - |
Issue of shares | 3.750 | 1.933 |
Proceeds form borrowings | - | - |
Repayment of borrowings | (32) | |
Net cash generated by/(used in) financing activities | 3.750 | 1.901 |
Net increase/(decrease) in cash and cash equivalents | 617 | (32) |
Cash and cash equivalents
By: Nasdaq / GlobeNewswire
- 30 Jun 2019
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