22 December 2017
Pursuant to the statement made on 6 November and 13 November 2017, Concepta plc, the UK healthcare company and developer of a proprietary platform and suite of products targeted at the mobile health market with a primary focus on women's fertility, provides shareholders today with an update on trading ahead of its 31 December 2017 year end.
Due to a labelling quality issue with the Company's manufacturer in China following its recent ramp up of production, the Company did not receive sufficient monitors to meet the order announced on 13 November. The majority of this order will now be delivered in January 2018. This issue, although now rectified, will have a distortion on the 2017 revenues which are now expected to be around £100,000. The Company will now recognise the majority of the revenue relating to this order in Q1 2018.
Orders have been increasing in the last few months of 2017 and with further new distributors likely to be appointed in the New Year the Board expects the delayed revenue referred to above to be additive to the 2018 budget. Following its recent fundraise, the Company has sufficient cash to meet its working capital requirements through 2018.
Erik Henau, CEO of Concepta plc said: "The team on the ground in China have been working hard over recent months to address issues identified within our supply chain as we continue to scale up production. The China team will have the support of David Darrock as Chief Operating Officer who has experience in the move from assembling products in a laboratory environment to full scale commercial manufacturing. We enforce strict quality control standards on our products and as such we have commenced a full supply chain evaluation with our suppliers and have implemented a number of measures to strengthen processes, for which we are already seeing significant improvements. Despite the impact of these issues I am confident that, following the improvements made, we are entering 2018 in a much stronger position."
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SPARK Advisory Partners Limited (Nomad)
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About Concepta Plc:
Concepta plc is an AIM-quoted pioneering UK healthcare company that has developed a proprietary product, myLotus, targeted at the personalised mobile health market with a primary focus on unexplained infertility* in women.
myLotus is currently the only consumer product which allows both quantitative and qualitative measurements of a woman's personal LH and hCG* hormone levels in a home test, facilitating higher conception rates and early diagnosis of issues with fertility hormones. The proposition of myLotus is to help women conceive naturally.
Concepta has made significant progress recently, establishing agreements with a number of distributors in China where myLotus has been given cFDA approval. Concepta is initially targeting the traditional route to market in China through Chinese hospitals and plans to add the direct-to-consumer route in the near future.
The Company is also well on its way to achieving CE-marking and commencing its direct-to-consumer launch in the UK and Europe in H1 2018. The Company has identified a significant global market opportunity, with revenue potential of the Chinese and EU unexplained infertility market estimated to be worth c.£600m per annum.
*Unexplained infertility refers to women that have been unable to conceive after 6 months of trying. This highly motivated target group of consumers won't typically be offered medical intervention until 12 months of unsuccessfully trying, with IVF not offered until two years. Research indicates couples start to take positive action ahead of this time and there is little medical support to help them do so.