Corporate News

Concepta plc (AIM:CPT), the pioneering UK healthcare company and developer of a proprietary platform and suite of products targeted at the personalised mobile health market with a primary focus on women's fertility and specifically unexplained infertility, announces its unaudited results for the six months ended 30 June 2016.

Operational highlights

• Disposal or dissolution of all oil and gas related subsidiaries
• Undertook strategic review and completed the acquisition of Concepta plc for £3.026 million comprising 30,343,950 New Ordinary Shares and £0.75 million in cash in July 2016
• Concepta is an innovative player in the Mobile Health and Connected Health Sector that has developed proprietary products for home self-testing as well as in a point-of-care environment
• Concepta's products will initially address the specific needs of women with fertility issues, in particular unexplained infertility
• MyLotus brand - unique offering allowing quantitative and qualitative measurement of a woman's personal hCG and LH hormone levels in urine samples
• Defined route to market:
  • Regulatory approvals for launch in China in place - first order from distributor with payment in advance expected following hospital testing in Q3 2016
  • CE-Marking for UK and Europe to follow in 2017
• Attractive market opportunity to capitalise on the Chinese and EU infertility market with annual revenue potential worth c.£600m
• New Product Development growth opportunities - Concepta's proprietary platform lends itself to wider family home-health monitoring to improve individual health parameters including chronic stress, inflammation, urinary tract, healthy pregnancy progression etc.

Financial Position

• February 2016, placing raised $1.787m net after costs
• Cash balance at the period end was $1.335m (H1 2015: $0.02m)
• Loss of $0.336m from continuing operations (H1 2015: $.0504m)
• Discontinued operations resulted in a profit of $0.109m (H1 2015: loss $0.318m)
• Cash outlay of $72k towards RTO costs

CHAIRMAN'S STATEMENT

Following a period of substantial change in 2015 I am pleased to present the interim results for the first half of 2016, following the transformational acquisition of leading women's health diagnostics company Concepta Diagnostics for £3.026 million in July 2016.

Following the Board decision to pursue investment in non-oil exploration projects, I joined the Board of Concepta plc, (previously Frontier Resources International plc) in February 2016.  Following the placing of £1.425m, which completed on 16 February, the process for either disposal or dissolution of all the subsidiaries at the time commenced to convert the Company into a cash shell.  The process for divesting the Company of its operating subsidiaries was completed on 23 March leaving the Company with cash of £1.4m before expenses.

As laid out in the Final Results for 2015 of Frontier Resources International plc, the former AIM cash shell (see press release 3 May 2016), the Board's strategy during H1 2016 was to identify suitable acquisition opportunities in a new sector, which would satisfy the requirements of AIM Rule 15 and indeed offer significant growth potential for the Company.

With this in mind, we found a compelling acquisition target in Concepta, which we believed would be in the best interests for the Company, wider stakeholders and offers a value accretive opportunity to reward the patience of our supportive shareholders. Since its foundation in 2013, Concepta has established itself as a leading and innovative developer of personalised mobile health diagnostics with a primary focus on women's fertility, where a significant market opportunity exists to develop a 'best in class' product to help women with unexplained infertility to conceive. 

To this end, the Company has developed a proprietary product branded 'MyLotus', which has a unique product offering that allows both quantitative and qualitative measurement of a woman's personal hCG and LH hormone levels to help increase conception probability. 

In March 2016 negotiations for the acquisition of Concepta Diagnostics proceeded, which culminated in the announcement on 7 July 2016 of the acquisition of the entire issued share capital of Concepta Diagnostics and a fund raising of £3.5m.

At a General Meeting on 25 July 2016 all resolutions were passed and Erik Henau and Mark Wyatt were appointed to the Board.  The acquisition is a fundamental change of direction for the business.

Financial review

• The Group's total comprehensive loss for the six months to 30 June 2016 was USD 326,000 (30 June 2015: loss USD 707,000). 
• The basic and diluted loss per share was USD 0.01 (six months to 30 June 2015: USD 1.55).
• Concepta raised USD 1,787,000 (£1.425,000 excluding costs) in the six months ended 30 June 2016 (USD NIL in the six months ended 30 June 2015).

As foreseen at the time of Admission to AIM, given that the Company is at an early stage of development, it is not anticipated that there will be any earnings arising from the Company's activities in the short to medium term. Accordingly, the Board does not expect to recommend or pay any dividends in the foreseeable future.

Outlook

We are delighted to have successfully completed the reverse takeover at the end of this reporting period and are looking forward to an exciting future as Concepta. 

The immediate focus following Concepta's RTO in July 2016, is the launch of MyLotus in China later this year (2016) and, subsequent to CE marking, targeting launch in the UK and Europe in 2017. In addition we are looking to set up new manufacturing facilities in Yorkshire, which will be another key milestone in our Company's development. Excitingly, Concepta has the opportunity to translate its proprietary platform into commercial success in these initial markets where annual revenues in the infertility segment are estimated to be worth c.£600m.

Furthermore, Concepta's products have myriad applications beyond fertility diagnostics, and we are in a unique position to come in at the ground floor of the fast growing global connected healthcare sector, which is set to be worth $61bn by 2020.

We look forward to updating the market on these exciting developments during the course of 2016 and beyond as we implement our defined growth strategy, focused on delivering commercial success and becoming the global market leader for over-the counter products for women with fertility issues and, ultimately, tackling the wider mobile health market.

Adam Reynolds

Chairman

Enquiries:

A copy of this announcement is available from the Company's website www.conceptaplc.com

Concepta Plc

Interim consolidated statement of comprehensive income

Concepta Plc

Interim consolidated statement of financial position

Concepta Plc

Interim consolidated statement of changes in equity

The following describes the nature and purpose of each reserve within owners' equity.                                      

Concepta Plc

Interim consolidated statement of cash flows