Latest Results

Half-year Report

MyHealthChecked Plc, the consumer home-testing healthcare company, announces its unaudited half year report for the six months ended 30 June 2021, a period of considerable growth driven by a dramatic ramp-up in COVID-19 PCR testing service revenues.

The Company also provides an update on further strong trading in Q3 (revenues of at least £8.5m, adjusted EBITDA* of no less than £1.4m, and cash generative for the first time) as well as a statement on trading outlook for the full year.


Commercial Highlights

  • Signed two commercial agreements with Boots UK Limited for supply of COVID-19 PCR test kits and associated laboratory services
  • Signed a commercial agreement with AAH Pharmaceuticals Limited (Lloyds Pharmacy) for supply of COVID-19 PCR test kits and associated laboratory services
  • Acquisition and integration of Nell Health Limited, a provider of genetic testing and personalized nutrition consultancy
  • Accreditation by UKAS of ISO 15189 stage 3

Financial Position

  • Revenue of £3,274,145 during the period (H1 2020: £12,707)
  • Adjusted EBITDA* loss of -£199,670 (H1 2020 : loss of -£1,171,359)
  • Completion of share placing of £3.4m (before expenses) at 1.75p per share in Feb 2021   
  • Cash balance at the period end was £2,214,496 (H1 2020 : £1,351,745)

*adjusted EBITDA is Operating profit adjusted for depreciation, amortisation and share based payments

Penny McCormick, Chief Executive Officer of MyHealthChecked Plc, said:I’m incredibly proud of the progress the Company has made during the last six months. We have secured commercial contracts with both of the UK’s top pharmacy retailers, ending H1 2021 with a strong cash position and significantly increased revenues compared to H1 2020.

 “We continue to grow as an organisation and with our talented team, which has been enhanced through the acquisition of Nell Health, I look forward to seeing the Company go from strength to strength in H2. While COVID-19 has been the predominant focus for us during the last 12 months, I am excited to continue development of our extended product pipline to market and continue to build MyHealthChecked’s reputation for high-quality products and services.”

 

 

Chairman & CEO Joint Statement

Overview

The Company reports a strong performance this year, having made significant progress since the launch of its COVID-19 PCR testing service in December 2020.

Trading for the year began to ramp up in Q2 following the signing of a contract with Boots UK Limited, the UK’s largest pharmacy retailer, and launch on 17 April, followed by a second contract and the launch of the Day 2 and 8 COVID-19 testing service on 7 May. Subsequently a contract has been signed with Lloyds Pharmacy, the UK’s second largest pharmacy retailer for supply of COVID-19 PCR test kits and associated laboratory services.

The Board is confident that trading for the full year will deliver performance in H2 considerably higher than H1, due to the continued high demand through the peak holiday period during the summer months in Q3. Beyond the period, MHC is well placed with its established customer base to continue to supply a good proportion of the COVID-19 testing market, whilst factoring recent Government changes to COVID-19 testing requirements for travellers to the UK announced in mid-September 2021.

The Board expects that revenue generated in Q3 to be at least £8.5m and deliver an adjusted EBITDA profit for the quarter of no less than £1.4m. The business will be cash generative in the quarter and expects cash balances to be at least £3.4m at the end of Q3.

However it is too early to fully assess the effect of the recent changes to the Government COVID-19 testing requirements as we move into the quieter fourth quarter of this financial year, therefore given this uncertainty the Company is not making a forecast for either revenue or profitability for Q4 at this time.

We have made progress in the following key areas in 2021:

Commercial Relationships

During the past 6 months we have secured contracts with both of the UK’s top pharmacy retailers, Boots and Lloyds. Following robust due diligence processes and collaboration for successful on-time launches, we have worked to build supportive relationships with both of our primary customers. Whilst the relationships are still in their early stages, we are building upon our reputation within these key organisations daily and are well positioned to collaborate further both inside and out of the COVID-19 testing arena.

Outside of retail, we have worked with several smaller accounts to deliver a first class COVID-19 testing service. This has included partners within the independent pharmacy, travel and media production industries and academia.

Personalised Wellness Tests

We completed a second acquisition in July 2021 – Nell Health Limited - which brought to us a broader range of validated saliva-based DNA tests. Our pipeline is defined and is currently in development. We will accelerate our developments at every opportunity, ensuring our talent and operation is sourced to deliver to the most efficient timeline.

Technology

Following the acquisition of Nell Health Limited, MHC has the ability to create innovative technology in-house, that is secure, adaptable, and robust for future product and service developments. In 2021 we have developed a new scalable platform customer facing e-commerce platform and Laboratory Information Management System that will house our future portfolio, and we transitioned our core business across to this.

Capital Expenditure on facilities

We have invested in building a UKAS approved ISO-15189 facility in Manchester, offering COVID-19 testing services to customers including same day turnaround.

Cash position

Following the completion of an equity raise in February 2021, we are pleased to report a £2.21m cash position at 30 June 2021 and report no material borrowings. These funds will be reinvested in 2021 into the talent and pipeline of the organisation, priming us for new market launches in 2022.

Strategy in 2022

There is a likelihood that due to the nature of the COVID-19 virus, private testing could continue into 2022, and whilst the Company will continue to deliver to its retail and consumer market, it is firmly focused on re-investing earnings generated in 2021 into its new product pipeline of at-home wellness tests, and long-term growth drivers including a Smartphone App, and wellness-enhancing customer education. Building upon the foundations laid this year and the reputation that has been built in the consumer and retail testing spaces, investment in the MyHealthChecked brand and marketing will aim to further maximise reach through the creation of an ownable, identifiable and desirable consumer brand.

Whilst delivering our new product pipeline development and building digital healthcare-centric technology that is scalable, we will continue to operate efficiently due to the unpredictability of the COVID-19 space, whilst maximising future value through our investment in 2021 earnings into long-term growth drivers including technology, talent, and commercialisation.

Our aims in 2022 are to:

  • Launch an initial portfolio of at home wellness tests, providing indications around weight management, vitamin deficiency, food intolerances, heart health and blood glucose
  • Develop app technology that provides actionable health and nutritional guidance that is tailored to the customer
  • Execute a business development strategy across direct to consumer, retail, and B2B channels
  • Continue to build a reputation in the COVID-19 testing space, providing a high-quality product and service
  • Bring additional talent into the organisation to deliver on our ambitious plans
  • Continue to explore third party technology that may enhance the customer journey and value of our products, and that can be integrated by our in-house talent
  • Identify and assess complementary earnings-enhancing partnerships with organizations that demonstrate the addition of key strategic value to our core business

We would like to thank our team, Board members and investors for their ongoing support of MyHealthChecked through this period of 2021. Whilst we have transitioned the organisation, we are delighted to be able to share a very positive set of results, and demonstrate our commitment to building a successful and secure business to the loyal team and investor base through this new and exciting growth phase of the organisation.

 

Adam Reynolds Penny McCormick
Chairman Chief Executive Officer

29 September 2021

 


Consolidated statement of comprehensive income
For the 6 months ended 30 June 2021

  Unaudited
6 months to
 
Unaudited
6 months to
Audited
12 months to
  30 June 2021 30 June 2020 31 December 2020
 Notes £ £ £
     
Revenue 3 3,274,145 12,707 49,480
Cost of sales  (2,174,271) (174,067) (689,782)
     
Gross profit / (loss)  1,099,874 (161,360) (640,302)
     
Other administrative expenses
Depreciation and amortisation
 (1,299,544)
(60,677)
(1,009,999)
(100,989)
(2,857,308)
(157,169)
Share-based payments  (6,593) (74,553) (103,290)
Administrative expenses  (1,366,814) (1,185,541) (3,117,767)
Operating loss  (266,940) (1,346,901) (3,758,069)
     
Finance expenses  (1,782) (1,981) (4,558)
Loss before income tax (268,722) (1,348,882) (3,762,627)
     
Tax credit 5 - - -
     
Loss for the period  (268,722) (1,348,882) (3,762,627)
 
Attributable to owners of the parent:  (268,722) (1,348,882) (3,762,627)
     
Loss per ordinary share - basic and diluted (pence) 4 (0.04) (0.39) (0.89)

 

 

Consolidated statement of financial position
As at 30 June 2021

 Unaudited
30 June 2021
Unaudited
30 June 2020
Audited
31 December 2020
 £ £ £
Non-current assets   
Property, plant and equipment 151,774 70,185 55,517
Intangible assets 503,389 742,071 616,560
Total non-current assets655,163 812,256 672,077
    
Current assets   
Inventories 782,584 476,802 2,808
Trade and other receivables 3,113,770 221,981 194,897
Corporation tax receivable - 178,302 -
Cash and cash equivalents 2,214,496 1,351,746 465,671
Total current assets6,110,850 2,228,831 663,376
    
Total assets6,766,013 3,041,087 1,335,453
    
Current liabilities   
Trade and other payables 2,994,003 312,516 383,186
Deferred tax liability - - 87,379
Lease Liabilities - - 4,895
Provisions 226,250 - 226,250
Total current liabilities3,220,253 312,516 701,710
Non-Current liabilities
Lease Liabilites - - -
Loans and borrowings. 102,697 104,367
Total non-current liabilities - 102,697 104,367
 
Total liabilities3,220,253 415,213 806,077
    
Net assets3,545,760 2,625,874 529,376
    
Share capital 725,246 489,822 517,822
Share premium account 15,512,921 12,179,653 12,441,832
Capital redemption reserve 1,814,674 1,814,674 1,814,674
Retained earnings (15,744,391) (13,060,255) (15,475,669)
Reverse acquisition reserve (6,044,192) (6,044,192) (6,044,192)
Deferred shares 6,358,720 6,358,720 6,358,720
Share-based payment reserve 922,782 887,452 916,189
Total equity 3,545,760 2,625,874 529,376

The accompanying notes are an integral part of these financial statements.

 

 

Consolidated statement of changes in equity
For the 6 months ended 30 June 2021

  Share capital  Share Premium  Capital redemption reserve  Retained earnings Reverse acquisition reserve Share-based payment reserve Deferred Shares Total
 £ £  £ £  £ £ £ £
         
Equity as at 01-Jan-206,623,667 10,739,816 1,814,674 (11,713,042) (6,044,192) 812,899 - 2,233,822
Loss for the year - - - (3,762,627) - - - (3,762,627)
Total comprehensive loss- - - (3,762,627) - - - (3,762,627)
Issue of shares net of expenses 252,875 1,702,016 - - - - - 1,954,891
Deferred shares (6,358,720) - - - - - 6,358,720 -
Share-based payments - - - - - 103,290 - 103,290
Equity as at 31-Dec-20517,822 12,441,832 1,814,674 (15,475,669) (6,044,192) 916,189 6,358,720 529,376
Loss for the period - - - - - - - -
Total comprehensive loss - - - (268,722) - - - (268,722)
Issue of shares net of expenses 207,424 3,071,089 - - - - - 3,278,513
Deferred Shares - - - - - - - -
Share-based payments - - - - - 6,593 - 6,593
Equity as at 30-Jun-21725,246 15,512,921 1,814,674 (15,744,391) (6,044,192) 922,782 6,358,720 3,545,760

The accompanying notes are an integral part of these financial statements

 

 

Consolidated statement of cash flows

 Unaudited
6 months to
30 June

2021
Unaudited
6 months to
30 June

2020
Audited
12 months to
31 December 2020
 £ £ £
Cash flows from operating activities
   Loss before taxation (268,722) (1,348,882) (3,762,627)
Adjustments for:    
   Depreciation and amortization 60,677 100,989 157,169
   Impairment losses on intangible assets - - 621,673
   Finance expenses 1,782 1,981 4,558
   Share-based payments 6,593 74,553 103,291
   Loss on sale of asset - - 179,718
Operating loss before working capital changes (199,670) (1,171,359) (2,696,218)
Changes in working capital    
   (Increase)/decrease in inventory (779,776) (96,597) 380,205
   (Increase) in trade and other receivables (2,918,873) (99,216) (72,132)
   Increase in trade and other payables 2,610,817 42,663 111,663
   Decrease in lease liability (4,895) - (281,888)
   Increase in provisions - - 226,250
Cash used in operations (1,292,397) (1,324,509) (2,332,120)
   Tax received - - 178,303
   Interest paid on sale and leaseback - (718) -
   Other interest paid (1,782) (1,262) (1,193)
Net cash outflow from operating activities (1,294,179) (1,326,489) (2,155,010)
Investing activities
   Purchase of property, plant and equipment (127,944) (147) (34,226)
   Purchase of intangible assets (3,198) (2,709) (2,777)
   Sale of asset - 297,419 284,784
  Acquisition of subsidiary in the year - - 109
Net cash flows used in investing activities (131,142) 294,563 247,890
Financing activities
   Issue of ordinary shares (net of issue expenses) 3,278,513 (4,694,008) 1,655,528
   Deferred Shares - 6,358,720 -
   Convertible Loan (104,367) 102,697 101,000
Net cash flows from financing activities 3,174,146 1,767,409 1,756,528
 
Net change in cash and cash equivalents 1,748,825 735,483 (150,592)
Cash and cash equivalents at the beginning of the period 465,671616,263616,263
Cash and cash equivalents at the end of the period 2,214,496 1,351,746 465,671
 

Notes

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

Page last updated: 29 September 2021