Latest Results

Interim Results

MyHealthChecked PLC, the consumer home-testing healthcare company, announces its unaudited half-year report for the six months ended 30 June 2022, which were stronger than expected and ahead of management expectations.

Financial Highlights

  • Revenue up circa threefold to £9.8m (H1 2021: £3.3m)
    -          Post-period end: Record breaking July revenues of £6.8m (unaudited)
  • Adjusted EBITDA improved to £0.37m (H1 2021: loss of £0.20m)
  • Improvement in Gross Profit to £1.5m (H1 2021: £1.1m)
  • Net cash generated from operating activities of £0.96m (H1 2021: £1.29m utilised)
  • Cash balance at period end of £7.0m (H1 2021: £2.2m)
    -          Whilst continuing to invest across the business for future growth
  • Strong cash generation and balances ensure next growth phases are self-funded

Commercial & Operational Highlights

  • Distribution of FlowFlex™ COVID-19 lateral flow test kits into top 2 pharmacy retailers
  • Over 6.4m COVID lateral flow tests delivered into the market, with a further 5m delivered post-period end
  • Launch of new self-funded portfolio DNA tests
  • Successful launch of DNA at-home wellness test range on Amazon
  • Development technology builds for new blood testing launch in Q4 2022
  • Retailer engagement around new testing portfolio

Penny McCormick, Chief Executive Officer of MyHealthChecked PLC, said: “We have exceeded our expectations for revenue performance in the first half of the year, and have further demonstrated our position of strength which has been earned through strong delivery and consistent customer service, despite even greater COVID unpredictability than experienced in 2021. Cash generation has been a top KPI for us, to ensure that we can self-fund our next growth phases and invest in building great technology and services for a successful and sustainable future. I want to thank each person who has delivered for MHC this year, doing so alongside the work being undertaken as we work towards a new portfolio and associated launches, which we are excited to share with the market in Q4.”  

Investor presentation

Penny McCormick, Chief Executive Officer and Nicholas Edwards, Chief Financial Officer, will provide a live presentation relating to the Half-Year Report via the Investor Meet Company platform tomorrow (Thursday 22 September 2022) at 4:30pm BST. The presentation is open to all existing and potential shareholders.

Investors can sign up to Investor Meet Company for free and register for the presentation via the link below:

https://www.investormeetcompany.com/myhealthchecked-plc/register-investor

 

 

CHAIRMAN AND CEO JOINT STATEMENT

We are delighted with the delivery of a robust financial performance during the first half of 2022, which has been achieved alongside delivery of our other Company milestones including product and technical development and product launches. Significantly, this included the successful development, build and launch of our new portfolio of DNA wellness test panels, which has been our first milestone launch following the success of our COVID testing portfolio. We have sustained our progress in the COVID space which has become increasingly competitive this year, demonstrating that once again we have nurtured our customer base through high levels of uncertainty and surge demand, with strong execution having added the distribution of lateral flow tests to our “at-home” product portfolio.  

This performance has been underpinned by a strong customer base, robust partner suppliers, and most importantly, a committed team who have delivered another superb set of results. Our thanks go to each person who has worked to deliver as part of this team for MHC this year, together we are energised and eager to deliver our new product launches in the coming months.

Financial performance – supply chain management and customer service

 We traded strongly through Spring which far exceeded expectations with revenue delivery of £9.8m (six months ended 30 June 2021: £3.3m; year ended 31 December 2021: £16.4m) and an adjusted EBITDA achievement of £372,000 (six months ended 30 June 2021: £199,000 loss; year ended 31 December 2021: £2,729,000). Revenue growth in the period was driven by high volume distribution of COVID lateral flow tests (“LFTs") which were supplied into top pharmacy retailers via both in-store and online channels. Demand spiked in April as direct-to-consumer purchases were driven by the Government’s cessation of free lateral flow testing for the general public, and a change in consumer behaviour to ‘self-elected’ lateral flow testing. Store distribution increased throughout the first half of the year, building a reach that spanned impulse travel outlets through to flagship top-tier city-centre stores.

During the period the business managed a high-volume national supply chain, shipping over 6.4m COVID tests into the market and ensuring that we carefully managed purchasing and logistics in an unpredictable and challenging global situation.   

Gross margins have reduced to 15.4% (six months ended 30 June 2021: 33.6%; year ended 31 December 2021: 31.3%)  reflecting the change in product mix from higher margin COVID PCR testing to LFTs in what is a competitive, high demand environment, and whilst the margins associated with LFTs are lower than laboratory testing, we have used our best efforts to balance customer value with the promise of a first-class, reliable supply chain management.

Overheads were broadly in line with prior years. In April we took the decision to close our Manchester laboratory operation, reducing future operational costs by approximately £25,000 per month. Our lab and experienced staff team played a key role in securing major contracts and servicing customer orders in 2021, and our team delivered during peak demand phases. The closure has enabled the business to focus on the commercialisation and development of our digital platform, and future investment will be channelled into strengthening the areas that provide the greatest long term growth potential, namely our digital platform, complementary services, and commercialisation.

Adjusted EBITDA is calculated as follows:

 Unaudited
30 June 2022
£’000
Unaudited
30 June 2021
£’000
Audited
31 December 2021
£’000
Operating profit/(loss) 12 (267) 2,046
Depreciation and amortisation 103 61 157
Impairment provision - - 414
Closure of laboratory costs * 153 - -
Share based payments 104 7 112
Adjusted EBITDA372 (199) 2,729

* Includes additional depreciation of £66,000

 

As a performance milestone on the acquisition of Nell Health Limited has not been met the Directors believe that the contingent deferred consideration of £1m will no longer be payable and have therefore released the provision for this amount. Consequently the Group’s profit before and after taxation amounted to £1,009,000 (six months ended 30 June 2021: £269,000 loss; year ended 31 December 2021: £2,004,000) giving a basic earnings per share of 0.13p (six months ended 30 June 2021: 0.04p loss; year ended 31 December 2021: 0.28p) and fully diluted earnings per share of 0.13p (year ended 31 December 2021: 0.27p).

Our careful delivery and focus on expenditure has also enabled us to retain a robust cash position with cash balances as at 30 June 2022 of £6,995,000 (six months ended 30 June 2021: £2,214,000; year ended 31 December 2021: £6,387,000). This marks the achievement of cash KPIs and our commitment to generating income for investment in our future portfolio and rollout.

New product launches

The delivery of our testing portfolio, and subsequent soft launch, has been a significant milestone for us in 2022 as we have begun to build a portfolio of consumer wellness tests to support market needs outside of the pressurised NHS. Our DNA tests have been developed in house, using SNPs (“Single Nucleotide Polymorphisms”) that must meet specific criteria before our Scientific Advisory Board approves them for inclusion within our tests, and have been developed to meet an anticipated change in consumer behaviour to self-management and preventative wellness. Our initial portfolio has been priced competitively within the DNA space for accessibility, and whilst it is far too early to comment on market position, our initial launch on Amazon and ongoing retailer discussions have indicated that the market is receptive to at-home wellness testing, including those using DNA extraction methods. We continue to work towards expanding our distribution network for this new portfolio.

Technology Developments

A key development area for us in the first half of this year has been our digital platform, which includes a simple reporting format for our new DNA tests. We are further expanding this to accommodate our upcoming product launches, whilst ensuring risk, customer safety, GDPR, data, security, regulations and governance are at the core of our digital evolution. Our platform has been used directly by well over 100,000 customers and provides a great customer experience that meets with the approval of our direct at-home customers and our retail partners. Our investment and development team continues to channel into the building of a ‘growth stack’ where the emphasis is on technology that allows for growth and auto scaling as our volume increases, focusing on a modular approach that will ensure our platform is agile, scalable and adaptable to the evolving digital landscape.

Post-period achievements

 July 2022 was a record-breaking month with revenue of £6.8m (unaudited) after the delivery of over 5.5m COVID LFTs into the market in that month alone. Alongside this delivery we have made significant progress on building a Phase 2 portfolio of further wellness products ready for launch in Q4 2022, which have been market validated using quantitative customer insights. These tests, that predominantly use blood sampling methods, will further strengthen our range, and enable us to provide the most popular tests, and subsequent results on our proven, simple to use digital reporting platform.

Market readiness and new launches

Our team has grown in terms of calibre through the period, with the appointment of digital development expertise, product management and marketing personnel, along with the appointment of additional medical advisors and knowledgeable subject matter experts in key marketing disciplines. We will execute a significant marketing push in line with our new product launches, and look forward to providing an update as we build momentum towards our launches. Much of this strategy is being shaped by further qualitative market insights through Q3 and Q4, as we invest in listening to a customer base that has emerged since the pandemic with new perspectives and behaviours. We will use this information to further shape our strategy and ensure that our products, services, and messaging resonates with our customer base and brings end users into a relationship development funnel.

Outlook

We have delivered strong revenue and operational performance in the first half of 2022, which, alongside new product launches and the building of a robust strategic growth plan, we believe will significantly support our customer base in meeting their health needs. Through clear decision making and proactive routes to self-selection, we can add value to the customer journey. We are filled with optimism and energy for the remainder of the year, where we will see our commercial, digital and product teams continue to strengthen, and deliver the builds and rollout plans that will underpin further growth.

Our half year and post-period performance has further demonstrated the establishment of a strong, credible, commercially focused operation that is committed to growth and delivery, and our excitement for next year is further heightened by the fact that we are still in the relatively early stages of our growth plan, which is anchored within at-home testing. Our Management and Board firmly believe in MyHealthChecked and are committed to building further upon this position of strength that has been achieved, so far, in 2022.

 

 

Adam Reynolds Penny McCormick
Chairman Chief Executive Officer
21 September 2022  

 

 

Consolidated statement of comprehensive income
For the 6 months ended 30 June 2022

  Unaudited
6 months ended
30 June
2022
 
Unaudited
6 months ended
30 June
2021
Audited
Year ended
31 December 2021
 Notes £’000 £’000 £’000
     
Revenue 3 9,832 3,274 16,376
Cost of sales  (8,321) (2,174) (11,251)
Gross profit 1,511 1,100 5,125
Other administrative expenses  (1,395) (1,360) (2,553)
Impairment of intangible assets  - - (414)
Share-based payments  (104) (7) (112)
Administrative expenses  (1,499) (1,367) (3,079)
Operating profit/(loss)  12 (267) 2,046
Finance expenses  (3) (2) (2)
Additional consideration payable on the acquisition of The Genome Store Limited  - - (40)
Contingent consideration on the acquisition of Nell Health Limited no longer payable  1,000 - -
Profit/(loss) before income tax 1,009 (269) 2,004
Tax  - - -
Profit/(loss) for the period 1,009 (269) 2,004
   
Attributable to owners of the parent: 1,009 (269) 2,004
 
Earnings/(loss) per ordinary share - basic 4  
0.13p
 
(0.04p)
 
0.28p
Fully diluted earnings per ordinary share 4 0.13p - 0.27p

 

 

Consolidated statement of financial position
As at 30 June 2022

  Unaudited
30 June 2022
Unaudited
30 June 2021
Audited
31 December 2021
 Notes £’000 £’000 £’000
Non-current assets     
Property, plant and equipment  88 152 163
Right-of-use assets  88 - -
Intangible assets  2,520 590 2,289
Total non-current assets  2,696 742 2,452
     
Current assets    
Inventories  711 783 497
Trade and other receivables  3,224 3,114 2,332
Cash and cash equivalents  6,995 2,214 6,387
Total current assets 10,930 6,111 9,216
     
Total assets 13,626 6,853 11,668
     
Current liabilities     
Trade and other payables  5,094 2,994 3,315
Lease liabilities  26 - -
Deferred taxation  - 87 -
Deferred consideration and other provisions  - 226 1,240
Total current liabilities 5,120 3,307 4,555
     
Non-Current liabilities
Lease liabilities 40 - -
Total non-current liabilities 40 - -
     
Total liabilities 5,160 3,307 4,555
     
Net assets 8,466 3,546 7,113
Share capital 5 780 725 756
Deferred shares  6,359 6,359 6,359
Share premium account  16,887 15,513 16,671
Capital redemption reserve  1,815 1,815 1,815
Reverse acquisition reserve  (6,044) (6,044) (6,044)
Retained earnings  (11,331) (15,745) (12,444)
Share-based payment reserve  - 923 -
Total equity  8,466 3,546 7,113

 

 

Consolidated statement of changes in equity
For the 6 months ended 30 June 2022

 
Share
capital

Deferred

shares

Share
Premium

Share-based
payment
reserve

Capital
redemption
reserve
Reverse
acquisition

reserve

Retained
earnings


Total
 £ ‘000 £’000 £’000 £’000  £’000  £’000 £’000 £’000
Equity as at
1 January 2021
 
518
 
6,359
 
12,442
 
916
 
1,815
 
(6,044)
 
(15,476)
 
530
Profit for the year- - - -- - 2,004 2,004
Total
comprehensive profit
-  
-
- - - - 2,004 2,004
Transfer from share- based payment reserve -  
 
-
- (916) - - 916 -
Issue of shares net of expenses 194  
-
2,979 - - - - 3,173
Conversion of loan note and interest 13  92 - - - - 105
Exercise of options 2 - 18 - - - - 20
Other share issue 1  16 - - - - 17
Share-based payments -  
-
- - - - 112 112
Acquisition of Nell Health Limited 28  1,124 - - - - 1,152
Equity as at
31 December 2021
 
756
 
6,359
 
16,671
 
-
 
1,815
 
(6,044)
 
(12,444)
 
7,113
Profit for the period- - - -- - 1,009 1,009
Total
comprehensive profit
- - - - - - 1,009 1,009
Share-based payments- - - - - - 104 104
The Genome Store deferred consideration 24 -216 - - - - 240
Equity as at
30 June 2022
780 6,359 16,887 - 1,815 (6,044) (11,331) 8,466

 

 

Consolidated statement of cash flows
For the 6 months ended 30 June 2022

 Unaudited
6 months ended
30 June
2022
Unaudited
6 months ended
30 June
2021

Audited
Year ended
31 December 2021
 £’000£’000£’000
Cash flows from operating activities
   Profit/(loss) before taxation 1,009 (269) 2,004
Adjustments for:    
   Deferred consideration adjustment (1,000) - 40
   Decrease in provisions - - (26)
   Depreciation and amortization 169 61 157
   Impairment of intangible assets - - 414
   Finance expenses 3 2 2
   Share-based payments 104 7 112
Adjusted operating profit/(loss) before changes in
working capital
285 (199) 2,703
Changes in working capital    
   Increase in inventory (214) (781) (494)
   Increase in trade and other receivables (892) (2,918) (2,124)
   Increase in trade and other payables 1,779 2,610 2,931
Cash generated/(used) in operations 958 (1,288) 3,016
   Other interest paid (3) (2) (2)
Net cash inflow/(outflow) from operating activities 955 (1,290) 3,014
Investing activities
   Purchase of property, plant and equipment (117) (128) (147)
   Purchase of intangible assets (296) (3) (102)
  Acquisition of Nell Health Limited - - (50)
Net cash flows used in investing activities (413) (131) (299)
Financing activities
   Issue of ordinary shares (net of issue expenses) - 3,174 3,211
   New lease finance 100 - -
   Repayment of lease liability (34) (5) (5)
Net cash inflows from financing activities 66 3,169 3,206
    
Net change in cash and cash equivalents 608 1,748 5,921
Cash and cash equivalents at the beginning of the period 6,387 466 466
Cash and cash equivalents at the end of the period 6,995 2,214 6,387

 

Notes

Notes to the Financial Statements are available in the printable PDF version

Page last updated: 21 September 2022