24th Aug 2022 10:43
(Alliance News) - OptiBiotix Health PLC on Wednesday lamented a strenuous half-year but eyed growing sales and business, seeing itself in a strong position.
OptiBiotix shares fell 26% to 20.28 pence each in London on Wednesday morning.
The York-based firm is a probiotics developer tackling cardiovascular diseases and lifestyle conditions.
In the six months to June 30, the OptiBiotix expects to report a pre-dividend profit of around GBP13.8 million thanks to the listing of its microbiome-focused subsidiary ProBiotix Health PLC on the Aquis Stock Exchange in London in March. A year ago, ProBiotix reported an interim pretax profit of GBP14.3 million.
In March, ProBiotix raised GBP2.5 million in its initial public offering on AQSE.
OptiBiotix said the gain on ProBiotix was partially offset by a loss on its investment in AIM-listed SkinBioTherapeutics PLC, whose shares are down 69% over the past 12 months.
SkinBioTherapeutics was down 7.9% to 20.50 pence on Wednesday, while ProBiotix was untraded, last trading at 21.50p, flat with its IPO price of 21p.
Outside the one-off net gain, OptiBiotix warned on continuing operations.
"Based on initial figures, we expect current sales in the group's new structure to be materially lower than expected, at around GBP120,000, with sales normalising in the second half but insufficient to make up the first half deficit and returning to healthy growth in 2023."
The firm explained that year-on-year comparisons are challenging due to the spin-off of ProBiotix, as OptiBiotix's proportions of profit and loss is only 44% of the firm's accounts.
"This is undoubtedly a very difficult trading environment for all companies, and this has impacted on first half-year revenues," the company said.
OptiBiotix nevertheless struck a forward-looking tone.
"Despite the challenging trading environment, the company believes it is in a strong position with a healthy balance sheet, a stronger cash position compared to the first half of 2021, growing sales in its online direct to consumer business, and the forthcoming launch of GoFigure products in India with Apollo Hospitals and in the Kingdom of Saudi Arabia with Nahdi Medical," it said.
Chief Executive Officer Stephen O'Hara commented: "The aim for the second half of the year is to focus on growing sales with existing partners".
The firm had GBP1.5 million cash at the end of June, up from GBP993,000 a year prior.
By Tom Budszus; [email protected]
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