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RNS Number : 0734E
InnovaDerma PLC
25 February 2020
 

The following announcement replaces the announcement released at 07.00 today under RNS Number: 9691D. The year on year growth of Charles + Lee in H1 has been corrected to 88%.  All other details remain unchanged.

The full amended text is shown below.

 

InnovaDerma PLC

("InnovaDerma", the "Company" or the "Group")

 

Half Year Results for the six months ended 31 December 2019

 

A period of excellent progress, strongly positioned to deliver in H2

 

InnovaDerma (LSE: IDP), a UK developer of beauty, personal care and life science products, is pleased to announce its unaudited half year results for the period ended 31 December 2019.

 

Financial highlights1

 

HY2019

HY2018

%change

Revenue

£5.1m

£3.9m

+32.8%

Gross profit

£3.1m

£2.2m

+40.1%

Gross margin

60.7%

58.3%

240bp

Profit (Loss) before tax

(£0.3m)

 

(£0.4m)

+18%

Basic EPS (pence

(2p)

(2p)

-

Cash and cash equivalents

£0.4m

£0.7m

-42.9%

1 On a constant currency basis

 

Operational Highlights

·      DTC channel accounted for 57% of total revenue

·      Skinny Tan customer base has increased by 12% to 683k since June 2019 

·      Skinny Tan DTC sales up 22% on the same period last year with the brand successfully relaunched in US and Australia

·      Exceptional success of Wonder Serum and Choc range in Boots and Superdrug respectively

·      Wonder Serum now rolled out to all 2,100 Boots stores

·      Charles & Lee performance robust and benefitted from new product development

·      Life Sciences delivered 71% increase in revenue driven by DTC channels

Outlook

·      Continued organic growth across our portfolio of brands

·      Launch of Nuthing, a new brand and category for hair removal to disrupt a sizeable market

·      Focused on continued product development across brands for rollout in H2

·      Maximise global applicability of brands and seek international retailers/distributors

·      Continue to invest in our DTC platform to drive revenue and profitability

·      A stable of excellent brands and new extensions in place to deliver strong cash generation, revenue and profit growth in H2

·      As in previous years, overall performance remains heavily weighted towards the second half and new product launches will add to this

·      Trading in H2 is in line with management expectations with our first seven weeks of FY2020 trading 17% ahead of the same period last year

 

Joe Bayer, Executive Chairman of InnovaDerma, said:

 

 "I am pleased to report a period of strong progress.  Despite a challenging retail environment, we have delivered an increase in revenue of 32.8% compared to the previous year and made excellent progress against our strategic aims.  Our growth has been driven by our enlarged retail network and the strategic investments and changes we have made to our digital channels which has enabled us to diversify across platforms, attract new customers and improve our ROI. 

 

"Product innovation is critical to our business and Wonder Serum and Choc delivered exceptional performances with the former now rolled out to 2,100 Boots stores from 1,305, a testament to its popularity and success.  We announced the launch of our new brand, Nuthing, an innovative range of hair removal products which will be available on our DTC channel, Superdrug online and in all of its 800 stores nationwide.  We are excited about our new brand and the significant growth it could bring both from the UK and overseas.

 

"Trading since period end has remained positive, and we have in place new product launches across our topical brands and will continue to build on our successes in geographical markets outside the UK.  We believe we are well-positioned but remain mindful of the challenging retail sector. The Board looks forward to further growth in H2 and beyond."

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

 

The Company is presenting at the Shares and AJ Bell Investor Evening event in London this evening. 

A copy of the presentation will be made available on the Company's website: https://www.innovaderma.com/investor-relations/.

 

Enquiries:

 

Further enquiries:

 

InnovaDerma

Joe Bayer

Kieran Callan c/o TB Cardew

www.innovaderma.com

 

 

+61 (0)3 9863 8030

+44 (0)20 7930 0777

 

finnCap Ltd

Geoff Nash/Kate Bannatyne

Alice Lane/Manasa Patil - ECM

 

+44 (0)207 220 0500

www.finncap.com

 

TB Cardew

Shan Shan Willenbrock/Tom Allison

Olivia Rosser

 

 

+ 44 (0)20 7930 0777

innovaDerma@tbcardew.com

 

 

 

Executive Chairman's Statement

 

I am pleased to report that InnovaDerma has continued to make good strategic progress, positioning the Group to benefit from a diversified portfolio of brands and increased scale across our retail network and DTC channels.  Revenue increased strongly by 33% to £5.1m (£3.9m) and loss before tax reduced to £0.3, (loss of £0.4m).  These solid results were achieved despite the backdrop of a challenging retail environment particularly on the High Street.

Our three clear strategic aims are to:

·      leverage commercial opportunities secured with retail partners and distributors;

·      grow our digital channels; and

·      focus on new product development and innovation.

Benefiting from an enlarged retail network

Our retail distribution channels have grown significantly from 800 (HY2018) to more than c.2,900 stores and contributed 43% (41%) of total revenue.  A prominent retail presence is vital in providing customers physical interaction with our brands whilst also giving us consumer market intelligence from a different channel. This is beneficial both in terms of understanding shoppers' buying behaviour and provides us with consumer insight enabling our product innovation pipeline.  Our new Nuthing brand is an excellent example of how we garnered intelligence to launch a product which is innovative and has the potential to disrupt a category which has clearly lacked investment for some years. 

 

DTC Channel - a key driver for growth

Our DTC channel accounted for 57% of total revenue (59%) and our customer base has increased by 48% to c.680K in the 12 months to 31 December 2019.  The internet has changed the way we shop, which presents us with opportunities to accelerate revenue and profit growth by ensuring we have a deep online presence. We have invested in Artificial Intelligence technology, enabling the business to accelerate the diversification of platforms, boost conversations, address new consumer demographics and attract new customers.  It has also improved return on investment (ROI) across the channel and our customer repeat rate is excellent at between 25% to 46% depending on the market with the UK recording the strongest results.  The combination of our retail network and DTC channel is complementary; we benefit from better brand awareness and a wider market reach which in turns drives value and brand loyalty. 

Focused on innovation

The innovation and subsequent launch of new categories and product extensions are important in driving the growth of the business, as evidenced in our positive performance.  Skinny Tan has benefitted from excellent product innovation with the very successful Wonder Serum (exclusive in Boots) and the Choc range (exclusive in Superdrug).  The launch of Nuthing, a new brand which is focused on hair removal, addresses a large market and a category complementary to Skinny Tan; consumer research shows us that self-tan buyers are strong purchasers of hair removal products.  Consumer tastes change continuously, and we need to keep up with that change to ensure we reach a broad demographic.

People

As announced on 7 November, Haris Chaudhry stepped down from the Company to pursue other interests.  We are seeking to broaden our board composition to ensure it has diversity and balance to maintain the continued success of the business.  The strength of our business is the result of the hard work and dedication of the team at InnovaDerma and I want to thank our employees for making our achievements possible and for the great passion and creativity they bring to their work.

 

Chief Executive's Review

The Group has continued to deliver excellent progress underpinned by a larger retail presence, successful product innovation and a best-in-class DTC platform.

Self-tanning

Skinny Tan has performed well in the period under review and revenue was up 40% compared to the same period last year. This has been driven by the rollout into Boots, continued support from Superdrug and exceptional popularity of Wonder Serum and the Choc range.  Sales through our DTC channel increased by 22% year on year and the brand's performance was especially strong during Black Friday and Christmas.  As we stated in our final results on 24 September 2019, the international distribution of Skinny Tan has become an area of focus and we relaunched the brand in Australia and the US via our DTC channels with Wonder Serum and this will be followed on with Choc. This differentiates us from competing brands and has created consumer excitement.  These campaigns have proven very successful and delivered strong revenue growth and attractive ROI on our spend.

 

Skinny Tan is very well-positioned for the tanning season in the second half of the year.  In Boots, the brand has secured ranging for exclusive new product development lines and additional SKU's.  Boots has increased the depth of distribution to all 2,100 stores for selected lines and secured excellent store positioning supported by eye-catching point of sale. The Choc range enjoyed major success in Superdrug over the Christmas period and as a result, Superdrug have incorporated it into their spring fixture relay. Critically Choc has accessed a much younger consumer than the traditional Skinny Tan demographic. This presents an opportunity to tap into a new growth segment for the brand.

Tesco has listed the brand for the first time and Skinny Tan will be available in 718 stores with a core range of five SKU's.  

We are seeking new retail listings in Canada and the US and Skinny Tan will be ranged on the QVC shopping channel e-commerce site in the US which widens our audience for the brand.

Haircare

Roots is our premium haircare range which assists in reducing hair loss.  Disappointingly, revenue fell by 31% versus the same period in 2018. This is due to the lack of any fresh pipeline fill in distribution in 2019 with no new retailers or stores being added and also less new triallists entering the brand. Roots has matured as a brand and we are conducting a review process to identify new avenues for growth to improve its performance. Consumer research has already been conducted and it has identified a number of promising opportunities. This review will include product claims and target demographics, sustainable packaging and formats, revised pricing and promotional strategy.

The brand secured a doubling of its shelf space in Boots and is ranged in 359 stores in addition to Superdrug's 786 stores. 

 

We are seeking distribution in key European markets and are in several negotiations. The brand has also received its first orders from Canada. However, new retail listings for Roots is unlikely to contribute to the Group's performance until well into FY21.

Skincare

Charles + Lee our affordable alternative premium range of men's skin care products continues to go from strength to strength in Australia. It is stocked in 581 retail stores (HY2018: 46).  It delivered year on year growth of 88% in H1 driven by a bigger retail presence and its popular gift packs especially over the Christmas period.  Pleasingly, we are seeing strong repeat purchases from Priceline and the brand will be rolled out into nine of David Jones' stores, an upmarket chain of department stores. There is a strong program of new product development in place to support demand for this brand. 

 

The men's skincare category has global appeal and therefore presents a large target market. We recently launched the brand online in the US and are receiving positive responses. A UK DTC launch will take place shortly and we are also seeking gifting opportunities in both retail and e-tail partners. The brand will also be launched in India once the registration process is complete.

 

Life Sciences

Life Science has made significant progress throughout the period and revenue for Prolong increased by 71% on the previous year as a result of DTC sales driven by online 'influencers', predominantly in the US. This growth comes from a low base, however we are pleased with the progress made through our digital channels. We believe this approach will give us a solid platform to market the product through other channels.

 

As previously announced, we have signed two major distribution agreements in Hong Kong and for the Gulf countries.  The revenue from these agreements will be recognised once regulatory approvals are completed and our distributors are able to sell the products into aforementioned countries. Obtaining regulatory approvals is a long and arduous process but with our new manufacturer in Korea we are only awaiting ISO certification which should be completed within the next month.

 

The existing and forthcoming regulatory approvals will enable us to sell in the US, Australia, Hong Kong, China, Canada and the Gulf countries. We are currently in the process of working towards our CE mark with our agent which will open up the UK and European markets. We are in discussions with an Indian distributor and currently researching the South American market.

 

GrowLase

The GrowLase product is available for sale in the US and Australia, however we are currently working on the website upgrade to include key findings from trials held in Australia. As we have previously mentioned, we are very excited by consumer trials and the before and after results taken at 30, 60, 90 and then 120-day intervals. It is our intention to have a relaunch of the product within the next 6 weeks.

 

In addition, we are developing a range of GrowLase wet products. There will be an initial four SKUs which will be part of the product offering once packaging designs have been finalised. Our intention for the Growlase brand is not to only provide an FDA cleared medical device for treatment but to support hair health with a range of innovative hair products to deliver a recurring income stream.

 

Nuthing

As announced yesterday, our new brand Nuthing is an innovative range of products for hair removal.  Nuthing will initially be exclusively stocked in all of c.800 Superdrug stores from 11th March as well as being sold online and via the Company's own DTC platform. Nuthing will be launched with an initial nine SKUs. The brand represents an opportunity to secure a significant share in a market category valued at c.£80m in the UK. The brand has global applicability and we are looking at retailers and distributors in a number of countries outside the UK.

 

Outlook

The Company has achieved a positive start to the second half of the year. Current trading is in line with expectations with our first seven weeks trading 17% ahead of the same period last year.  The second half of the year is typically our busiest season and we have a strong pipeline of new products for Skinny Tan, Charles +Lee and the Roots brand refresh to be launched in the second half to drive further growth.  Our life sciences business is performing well through our DTC Channels.  Today, we announced our new brand, Nuthing, which we are very excited about and believe it has the potential to disrupt a category which has lacked innovation.

We are also seeking to diversify our geographical footprint and in discussions with retailers/distributors in Europe, the USA, South Africa, Canada and Australia for our topical brands.  We have started off the year well and will benefit from an enlarged retail footprint and a best-in-class DTC platform.  As a result, we look forward to further growth in H2 and beyond.

 

Finance Review

 

Overview

 

The Group has reported an increase in revenues of 33% compared to the same period in the previous year.  The strong performances in UK and US DTC along with UK retail and Charles and Lee were the main drivers in this increase along with the new launches of Wonder Serum and the Choc range. The DTC channel accounted for 57% of total revenues in the period under review. The Company generated a loss before tax of £0.3m (loss of £0.4m).

 

Operating Results

 

Group gross margins were much improved over the period at 60.7% (58.3%), an increase of 240bps. The benefits of a larger retail network and a more favourable product mix have been the main contributors.

 

Overall marketing expenditure totalled £1.7m (£1.1m), an increase to the previous period of £0.6m. The primary driver to this can be attributed to the increased distribution of products to Boots. We continue to invest in developing our on-line customer list and the expenditure relating to the growth of our customer list was recognised as an intangible asset. As commented in previous announcements we continue to take a conservative approach in the capitalisation of this intangible asset.

 

The Company incurred further expenditure on product development initiatives, including the Nuthing hair removal brand, which will support sales in H2.

 

The Group has endeavoured to control wage and salary costs. While the HY2019 shows an increase of £0.14m against HY2018, when aligned to the current budget for HY2019 there is a saving of £0.1m or 8%. Administration expenses are in line with current expectations.

 

Taxation

 

The Group has used the reported results to estimate the tax expense which has been reflected in the Consolidated Statement of Profit and Loss. The Group carries a Deferred Tax asset which has been calculated to reflect movements in the income tax expense.

 

Cash and net debt

 

The Group carried a cash balance of £0.4m (£0.7m) at the end of the reported period as against an opening balance as at the 1 July 2019 of £2.0m. The reduction in cash during the period was the result of investment in developing our new brand, digital channels and the build-up of inventory, ensuring the Group has sufficient stock, including the new brand Nuthing, for the peak tanning season in H2.

 

Further, the Company took the opportunity to purchase a further 1% of the Skinny Tan subsidiary, taking the parent company interest to 95%. The Company continues to carry no debt but has the ability to accelerate discussions with various lenders to ensure a modest debt facility is available if needed.  This is particularly relevant at the annual low point of the Company's cash reserves.

 

Dividends

 

The Board has elected not to declare a dividend at this time.

 

Responsibility statement 

 

The names and functions of the Directors of the Company are as follows: 

Joseph Bayer           Executive Chairman

Kieran Callan           Chief Executive Officer

Rodney Turner         Non-Executive Director

Ross Andrews          Non-Executive Director

  

The Board confirms that to the best of its knowledge the condensed set of financial statements gives a true and fair view of the assets and liabilities, financial position and profit of the Group and has been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the European Union and that the interim management report includes a fair review of the information required by the Disclosure and Transparency Rules as issued by the Financial Conduct Authority, namely:

·      DTR 4.2.7:  An indication of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year.

·    DTR 4.2.8:  Details of related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the enterprise during that period. Together with any changes in the related parties' transactions described in the last annual report that could have a material effect on the enterprise in the first six months of the current financial year.

By order of the Board

   

Joe Bayer

Executive Chairman                                                                          24th February 2019

 

Principal risks and uncertainties

 

Risks

The Board regularly monitors exposure to key risks, such as those related to manufacturing of the product, cash position and competitive position relating to sales. It has also taken account of the economic situation over the past 12 months, and the impact that has had on costs and consumer purchases. In addition, with the uncertainty surrounding Brexit, the company has maintained a close brief on developments. The management believes that any impact on the company of Brexit is limited due to the small revenue base in Europe and manufacturing domiciled in the UK.

 

The principal risks the Company faces relate to a) the regulatory requirements in each country to which it exports and b) cash flow. If those regulations change, the Company will need to quickly adapt its strategy to ensure compliance and facilitate continuing sales. At this stage, because our key markets of Australia, US and the UK operate very stringent policies on all products, the Company does not view this as very likely to occur but have nonetheless recognized the potential risk.

 

Cashflow is another principal risk as, while the Company is in its growth phase, working capital is under demand to fund the purchase and manufacture of stock in concert with trading terms to retail buyers. The Group has alleviated this risk with recent capital raisings and stands well prepared to meet the requirements of its growth plans.

 

Capital structure

 

As at the 31 December 2019, the ordinary share capital of InnovaDerma PLC consisted of 14,496,633 shares, with a nominal value of EUR0.10 each. During the reported period the Group acquired a holding of 1% of the shares of its subsidiary Skinny Tan Pty Ltd from a founding shareholder. This takes the holding in that entity from 94% to 95%.

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

 

FOR THE 6 MONTHS YEAR ENDED 31st DECEMBER 2019 - Unaudited 

 

 

 

 

 

Half Year ended 31 December 2019

Half Year ended 31 December 2018

 

 

£

£

Revenue

 

5,120,231

3,856,047

Cost of sales

 

(2,013,457)

(1,621,423)

Gross profit

 

3,106,775

2,234,624

 

 

 

 

Other Income

 

1,775

13,979

Marketing expenses

 

(1,735,054)

(1,093,309)

Listing expenses

 

(80,482)

(58,927)

Wages & salaries expenses

 

(941,038)

(794,195)

Administrative expenses

 

(699,477)

(724,483)

Profit before tax

 

(347,501)

(422,311)

 

 

 

 

Income Tax expense

 

77,764

112,030

 

 

 

 

Net profit for the period

 

(269,737)

(310,281)

 

 

 

 

Other comprehensive income

 

5,465

(591)

 

 

 

 

Total comprehensive income for the period

 

(264,273)

(310,872)

 

 

 

 

Attributable to:

 

 

 

Owners of the parent

 

(269,492)

(317,508)

Non-controlling interests

 

5,219

6,636

 

 

 

 

Basic & diluted profit/(loss) per share

 

-£0.02

-£0.02

 

Earnings per share

 

 

 

31 Dec 19

31 Dec 18

30 Jun19

Basic

 

(£0.02)

(£0.02)

£0.07

Diluted

 

(£0.02)

(£0.02)

£0.07

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

AS AT 31 DECEMBER 2019 - Unaudited

 

 

As at 31 December 2019

As at 30 June 2019

 

£

£

Current assets

 

 

Cash and cash equivalents

360,330

2,043,048

Trade and other receivables

1,895,697

3,295,255

Inventory

3,894,724

2,364,530

Prepayment and other assets

434,389

314,210

Total current assets

6,585,140

8,017,043

 

 

 

Non-current assets

 

 

Property, Plant and Equipment

76,391

53,455

Intangible assets

6,901,601

6,578,562

Other assets

15,431

17,186

Deferred tax asset

225,204

234,329

Total non-current assets

7,218,627

6,883,532

Total assets

13,803,767

14,900,575

 

 

 

Current liabilities

 

 

Trade and other payables

2,311,588

2,957,136

Current tax payable

1,125,936

1,202,729

Total current liabilities

3,437,523

4,159,865

 

 

 

Non-current liabilities

 

 

Borrowings

-(3,285)

-(552)

Deferred tax liability

(37)

170

Total non-current liabilities

-(3,322)

-(382)

 

 

 

Total liabilities

3,434,201

4,159,483

 

 

 

Net assets

10,369,566

10,741,092

 

 

 

Equity

 

 

Share Capital

1,733,476

1,735,798

Share premium

8,288,479

8,288,479

Merger reserve

(721,132)

(721,132)

Warrant Reserve

0

0

Foreign Exchange reserve

(406,708)

(172,202)

Non-controlling interest

278,622

318,970

Retained Profit/(Accumulated Losses)

1,196,828

1,291,179

Total equity and reserves

10,369,566

10,741,092

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

 

 

As at 31 December 2019 - Unaudited

 

 

 

 

 

 

 

 

 

Ordinary Share Capital

Share Premium

Merger Reserve

Warrant Reserve

Foreign Exchange Reserve

Accumulated Earnings/ (Losses)

Non-controlling interests

Total Equity

 

£

£

£

£

£

£

£

 

Balance as at 30 June 2019

1,735,798

8,288,479

(721,132)

0

(172,202)

1,291,179

318,970

10,741,092

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

 

(274,957)

5,219

(269,737)

Other comprehensive income

-

-

-

-

5,465

-

-

5,465

Total comprehensive income for the year

-

-

-

-

5,465

(274,957)

5,219

(264,273)

 

 

 

 

 

 

 

 

 

Transactions with owners, in their capacity as owners

 

 

 

 

 

 

 

 

Shares issued

0

0

-

-

-

-

-

0

Foreign exchange differences on translation of foreign denominated subsidiaries

(2,322)

-

-

-

(239,971)

181,476

-

(60,816)

Increase holding in Skinny Tan AU

-

 

-

-

-

(870)

(45,567)

(46,437)

Cost of Warrant

 

 

 

0

 

 

 

0

Cost of shares issued

 

0

-

 

-

-

-

0

Total transactions with owners, in their capacity as owners

(2322)

0

0

0

(239,971)

180,606

(45,567)

(107,253)

 

 

 

 

 

 

 

 

 

Balance at 31 December 2019

1,733,476

8,288,479

(721,132)

0

(406,708)

1,196,828

278,622

10,369,566

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

FOR THE PERIOD 1 July 2019 TO 31 December 2019- Unaudited

 

 

 

Half Year ended 30 December 2019

Half Year ended 30 December 2018

 

£

£

Cash flows from operating activities

 

 

Receipts from customers

6,519,790

4,130,514

Payments to suppliers and employees

(7,714,411)

(4,780,667)

Taxes Paid

8,918

(116,302)

Net cash used by operating activities

(1,185,704)

(766,455)

 

 

 

Cash flows from investing activities

 

 

Purchase of property, plant and equipment

(22,936)

(22,811)

Payments for product development

(30,369)

0

Payments for Intangibles

(342,718)

(444,575)

Net cash paid on acquisition of subsidiaries

0

(73,173)

Net cash used by investment activities

 

 

 

Cash flows from financing activities

 

 

Proceeds from issue of shares

0

132,000

Repayments of borrowings

(2,733)

0

Payments for convertible notes

0

0

Transaction costs for shares issued

0

(50,535)

Net cash from financing activities

 

 

 

Increase in cash and cash equivalents

(1,584,459)

(1,225,548)

Cash and cash equivalents at the beginning of the period

2,043,048

1,906,215

Effect of movement in foreign exchange rates

(98,259)

21,367

Cash and cash equivalents at the end of the period

360,330

702,034

 

 

 

Notes to the unaudited interim financial report

1.   Basis of preparation

The interim financial statements for the six months ended 31 December 2018 and 31 December 2019 and for the twelve months ended 30 June 2019 do not constitute statutory accounts for the purposes of Section 434 of the Companies Act 2006. The Annual Report and Financial Statements for the year ended 30 June 2019 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for the year ended 30 June 2019 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006. The 31 December 2019 statements were approved by the Board of Directors on 21st February 2020. This unaudited interim report has not been audited or reviewed by auditors pursuant to the Financial Reporting Council guidance on Review of Interim Financial Information.

The condensed financial statements in this Interim Report have been prepared in accordance with the requirements of IAS 34 'Interim Financial Reporting' as adopted by the European Union.

As required by the Disclosure and Transparency Rules of the UK's Financial Conduct Authority, the condensed set of financial statements has been prepared by applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year ended 30 June 2019, which were prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

The condensed interim financial statements for the six months ended 31 December 2019 and the comparative figures for the six months ended 31 December 2018 are unaudited. The figures for the year ended 30 June 2019 have been extracted from the Annual Report on which the Auditors issued an unqualified audit report and which have been filed with the Registrar of Companies.

2.   Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

 

 

Six months ended

31 December

Year ended

30 June

 

 

2019 (Unaudited)

2018

(Unaudited)

2019 (Audited)

 

 

£000

£000

£000

Earnings

 

 

 

 

Net profit from continuing operations before tax attributable to the equity holders of the parent company

 

(269)

(317)

826

 

3.    Related party transactions 

Name

Transaction     

Amount received from/

Amount due from/(to)

 

(paid to) for the Half Year ended December

 

as at 31               as at 30

December             June

 

 

 

 

2019

2018

2019

2019

 

 

£

£

£

£

Zaymar Investments Pty Ltd

Loan payable1

0

(13,186)

0

0

 

Mr Haris Chaudhry

Loan payable1

 0

0

0

0

 

 

 

 

 

 

 

 

1 These loans are interest free and unsecured.

 

 

 

 

 

Nature of related parties

Zaymar Investments is a related party of Mr Haris Chaudhry.

This document may contain forward-looking statements that may or may not prove accurate.  For example, statements regarding expected revenue growth and operating margins, market trends and our product pipeline are forward-looking statements.  Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements.  Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to InnovaDerma as of the date of the statement. All written or oral forward-looking statements attributable to InnovaDerma are qualified by this caution.  InnovaDerma does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.

 

 


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