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Bactiguard Holding

Quarterly Report Aug 13, 2015

3004_ir_2015-08-13_5f20f7e2-c6a8-4b25-a69f-2a7a284db1c3.pdf

Quarterly Report

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Interim report for Bactiguard Holding AB (publ)

Corporate registration number 556822-1187

Second Quarter (April-June 2015)

  • During the second quarter, a total of approx. 58,000 (44,000) BIP products were delivered.
  • Revenues amounted to SEK 27.7 (31.2) million.
  • EBITDA amounted to SEK -10.0 (2.2) million. Provisions for severance pay to the former CEO as well as for doubtful accounts receivable have negatively affected EBITDA during the quarter by SEK -6.6 million. Adjusted for these items, EBITDA amounted to SEK -3.4 million. The provisions for doubtful accounts receivable have no effect on cash flow.
  • Reported net profit for the quarter amounted to SEK -11.8 (-44.1) million, corresponding to SEK -0.35 (-2.04) per share. Net profit for the quarter has been positively affected by market valuation of the bond with SEK 11.0 million (-15.2 million). This effect is of an accounting nature, and has no effect on cash flow.
  • Operating cash flow for the quarter amounted to SEK -7.8 (-8.3) million, corresponding to SEK -0.23 (-0.39) per share

First half year (January-June 2015)

  • During the period, a total of approx. 63,000 (60,000) BIP products were delivered.
  • Revenues for the period amounted to SEK 56.6 (65.7) million.
  • EBITDA for the period amounted to SEK -36.8 (12.0) million. Provisions and non-recurring costs have negatively affected EBITDA during the period by SEK -35.4 million. Adjusted for these items, EBITDA amounted to SEK -1.4 million. The provisions for doubtful accounts receivable of net SEK -25.5 million have no effect on cash flow.
  • Reported net profit for the period amounted to SEK -42.4 (-63.7) million, corresponding to SEK -1.27 (-3.06) per share. Net profit for the period has been positively affected by market valuation of the bond with SEK 17.9 million (-24.2 million).
  • Operating cash flow amounted to SEK -16.4 (9.4) million, corresponding to SEK -0.49 (0.45) per share

Key events during the second quarter

  • Deliveries to Southern Africa and Saudi Arabia
  • Distribution agreement for Israel
  • Christian Kinch appointed new CEO
  • Stanley Brodén new Chairman

Key events after the end of the second quarter

Additional order from C.R. Bard

Key figures Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full year
2015 2014 2015 2014 2014
Revenues, SEKm 27,7 31,2 56,6 65,7 118,9
EBITDA, SEKm -10,0 2,2 -36,8 12,0 10,3
EBITDA margin, % -36% 7% -65% 18% 9%
EBITDA*, SEKm -10,0 5,2 -36,8 15,0 13,3
EBITDA margin*, % -36% 17% -65% 23% 11%
Operating profit, SEKm -18,2 -5,2 -53,1 -2,8 -19,8
Net profit for the period, SEKm -11,8 -44,1 -42,4 -63,7 -95,0
Operating cash flow**, SEKm -7,8 -8,3 -16,4 9,4 -54,0
Earnings per share***, SEK -0,35 -2,04 -1,27 -3,06 -3,80
Op. cash flow per share****, SEK -0,23 -0,39 -0,49 0,45 -2,16
Equity ratio, % 64% 58% 64% 58% 64%
Net debt, SEKm 88,5 22,5 88,5 22,5 90,4
Number of shares at the end of period* 33 302 373 33 302 373 33 302 373 33 302 373 33 302 373
Weighted average number of shares* 33 302 373 21 573 174 33 302 373 20 790 933 25 007 242

*EBITDA 2014 adjusted for IPO costs

**Cash flow from operating activities after investments and changes in working capital

***Net profit for the period / Weighted average number of shares during the period, issue-adjusted

****Operating cash flow / Weighted average number of shares during the period, issue-adjusted

*****Adjusted for split

Comments by the CEO

At the beginning of June, I once again assumed the role as CEO of Bactiguard after almost one and a half years as Chairman of the Board. At the same time, Stanley Brodén was appointed new Chairman of the Board. The main focus for me and the other members of management is to secure stability and continuity in the company and open up new growth possibilities for Bactiguard, both internationally and in our home market.

Our strategy remains the same. We focus our resources on growth markets where we see the greatest potential and work to secure access to these markets. At the same time, we initiate well defined, complementary studies to strengthen our clinical evidence. We continue to invest in our sales and marketing organization to generate more sales and increase revenues. In addition to this, we will allocate more resources to developing future license businesses, to complement the stable base we have in the long term and successful license agreement we have with C.R. Bard.

During the second quarter, we had a positive volume development in our own BIP portfolio and reported the highest deliveries since the fourth quarter 2013, which is encouraging. The reasons behind this positive development were primarily major deliveries to southern Africa and Saudi Arabia, but Switzerland, Sweden and Iran have also contributed.

That deliveries to Saudi Arabia are increasing is encouraging for several reasons. These are repeat orders from one of our most well established markets and this major delivery means that the previously agreed market contribution has now been consumed. This means that Saudi Arabia can be added to the handful markets that currently generate sales revenues in connection with product deliveries.

Another positive development is that we have made a breakthrough in the Swedish market, as a number of hospitals are initiating trials with our products for infection control. At the same time, a couple of regions have introduced a special category for infection control in their tenders. This bodes well for the future.

In terms of revenues and results, the second quarter was not as strong as the corresponding quarter 2014. This was primarily due to the lack of income from territorial fees this quarter. This is related to the fact that we focus on initiating marketing activities and product deliveries as soon as possible when signing new distribution contracts, which means that we report revenues when product deliveries are made. We have continued the review of our distribution network and concluded that we need to change distributor in a handful markets. In connection with this review, we have made reservations for doubtful accounts receivable. Results were also affected by severance pay to the former CEO.

After the end of the quarter, we received a major one off order from C.R. Bard, intended to increase their safety stock of Bactiguard-coated Foleys for infection control. The order will generate additional sales of approximately SEK 28 million in the third quarter and make a positive contribution to cash flow, which is very encouraging. This has a positive effect on total sales to Bard this year but it is worth mentioning that we do not expect the underlying volume to be affected.

Looking ahead, the intensified negotiations which have been ongoing in Iraq for some time are still in their final stages, but the process has been delayed by the political turmoil in the country in the past few weeks. In India we are initiating clinical studies and continue the work of establishing sales channels. The import license for Mexico has been secured and market activities will be initiated shortly. We are still waiting for the final product approval in China, a process which is slowly moving forward.

At the annual general meeting in May, the healthcare related competence of the Board was strengthened by the election of Stanley Brodén, former CEO of Aleris and previously employed by Capio, two of the most prominent private healthcare providers in Sweden and Peter Hentschel, who has extensive international experience from the medical device industry, primarily from Mölnlycke. I am convinced that they will contribute to Bactiguard's development in a very concrete way and look forward to advancing our position in the global market for infection control, together with the other members of the management team and all Bactiguard employees.

Christian Kinch VD

Key events during the second quarter

Delivery to Southern Africa

In April 2015, Bactiguard delivered an order of some 20 000 products for infection control to Southern Africa, comprising both Foley and central venous catheters for the healthcare system in Angola.The delivery was made against market contribution, and will therefore not generate any new revenue.

Delivery to Saudi Arabia

At the end of June 2015, Bactiguard delivered an order of more than 20 000 Foley catheters to Gulf Medical in Saudi Arabia. Part of the delivery to Saudi Arabia has generated direct sales revenues in the second quarter. From the third quarter, all deliveries to Saudi Arabia will generate direct sales revenues.

Gulf Medical distributes Bactiguard's portfolio of products for infection control to the healthcare system in both Saudia Arabia and the United Arab Emirates (UAE).

Bactiguard enters distribution agreement for Israel

Bactiguard has entered an exclusive distribution agreement for Israel with Dover Medical & Scientific Equipment Ltd. The agreement covers sales of all products in the Bactiguard Infection Protection portfolio for the healthcare system. The market strategy for Israel will now change from direct sales to sales via a distributor.

CEO Niels Christiansen leaves Bactiguard

In June, Niels Christiansen left his position as CEO of Bactiguard Holding AB (publ). The Board appointed Christian Kinch as new CEO. Stanley Brodén was appointed Chairman of the Board until the Annual General Meeting (AGM) in 2016.

Key events after the end of the second quarter

Additional order from C.R. Bard

Bactiguard has received a major one off order from C.R. Bard (Bard) intended to increase their safety stock of infection prevention catheters. The order will generate additional sales of approximately SEK 28 million in the third quarter and make a positive contribution to cash flow.

The additional order will lead to higher total sales to Bard for 2015 compared to last year. Excluding this order, the underlying volume of coating concentrate delivered to Bard in 2015 is not expected to be affected.

Consolidated revenues and earnings

Revenues

Bactiguard has three revenue streams:

Sales of BIP products

The BIP portfolio currently includes sales of the BIP Foley, BIP ETT and BIP CVC products.

License revenues

License revenues are attributable to sales of products under license, which currently includes the group's licensing agreement with C.R. Bard, Inc. (Bard) regarding Foley catheters for the USA, Japan, the UK, Ireland, Canada and Australia.

Territorial fees

Territorial fees are attributable to the compensation received when entering into a contract with a distributor that obtains exclusive rights to sell Bactiguard's products on a distinct geographical market.

Other revenue

Comprises mainly foreign exchange differences and any other operating income.

Bactiguard's BIP (Bactiguard Infection Protection) product portfolio includes medical devices in three areas: urinary tract, respiratory tract and blood streams.

Revenue distribution

Second quarter (April-June)

Consolidated revenues for the second quarter amounted to SEK 27.7 (31.2) million, which is a decrease of approx. 11 % compared to the same quarter last year. The decrease is related to lower revenues from Territorial fees, which were non-existent during the second quarter 2015. During the quarter a new distribution agreement for Israel was signed. The agreement does not include any Territorial fees and thus generates direct sales revenues (Sales of BIP Products) upon product deliveries.

The bulk of revenues during the first quarter (93 %) came from License revenues. The total volumes to Bard was 3 % lower compared to the same quarter last year, which was due to acceleration of orders during June 2014. A positive currency effect of approx. SEK 5.7 (0.1) million however meant that License revenues in the second quarter 2015 increased by approx. 13 % to SEK 25.8 (22.8) million.

Sales of BIP products amounted to 3.7 % of revenues (approx. SEK 1 million) in the second quarter, with sales to Saudi Arabia, Iran, Switzerland, Aland Islands and Sweden. Sales revenue from Saudi Arabia reflect a breakthrough, since these are the first recorded sales revenues from a distributor (Gulf Medical) where the previously agreed market contribution has been fully consumed. Part of the delivery to Saudi Arabia has thereby generated direct sales revenues ("Sales of BIP products") in the second quarter. From the third quarter, all deliveries to Saudi Arabia will generate direct sales revenues.

Other product shipments have resulted from product deliveries to distributors against market contribution, and therefore have not generated revenue during the quarter.

Other revenues during the quarter (3.2 %) are attributable to exchange rate differences and EU grants for development projects.

First half year (January-June)

Consolidated revenues for the first half year amounted to SEK 56.6 (65.7) million, a decrease of approx. 14 % compared to the first half year 2014. The bulk of the revenue 93 % (69 %), was attributable to license revenues. A positive currency effect on License revenues amounted to approx. SEK 11.0 (0.3) million.

Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full year
2015 2014 2015 2014 2014
License revenues 93,1% 73,1% 93,0% 69,0% 75,5%
Territorial fees 0,0% 15,4% 0,0% 24,9% 14,4%
Sales of BIP products 3,7% 4,7% 2,0% 2,3% 1,8%
Other revenue 3,2% 6,8% 5,0% 3,7% 8,3%

Product deliveries

During the second quarter 2015, a total of approx. 58,000 BIP products were delivered, compared to approx. 44,000 in the corresponding period of 2014, an increase of approx. 32 %. This includes major deliveries to South Africa and Saudi Arabia, but also Switzerland, Sweden and Iran have contributed.

During the first half year 2015, a total of approx. 63,000 products were delivered, compared to approx. 60.000 in the corresponding period of 2014, an increase of approx. 5 %.

Financial results

Second quarter (April-June)

EBITDA for the second quarter amounted to SEK -10.0 (2.2) million. Provisions have negatively affected EBITDA during the quarter by SEK -6.6 million. Adjusted for these items, EBITDA amounted to SEK -3.4 million.The change compared with the corresponding period last year is mainly a result of the implemented provisions and lower revenues from Territorial fees.

Consolidated operating profit for the second quarter of 2015 amounted to SEK -18.2 (-5.2) million. In Other external expenses a provision for doubtful accounts receivable for Ukraine, Malaysia, Qatar and South Africa, is included with net SEK 2 million. The provision regarding Ukraine is a consequence of the current market situation in the country, while the other provisions are a result of malfunctioning distributors where Bactiguard will change to new distributors. Personnel expenses include a provision for severance pay to the former CEO of SEK 4.6 million.

Financial items for the quarter amounted to SEK 5.0 (-40.1) million. The effects of market valuation of the bond loan, which have no effect on cash flow, are recognised as financial items in the income statement. During the second quarter of 2015, the market valuation of the bond affected financial items positively by SEK 11.0 (-15.2) million. Interest expense related to the bond amounted to SEK -5.0 (-11.3) million in the second quarter. The lower interest expense reflects the fact that the outstanding bond loan decreased from an initial nominal value of SEK 450 million to a nominal value of SEK 183.5 million through the set-off issue completed in connection with the listing of the company's shares on Nasdaq Stockholm and through repurchase of bonds in the market, see Financial Position below.

Consolidated net profit for the second quarter amounted to SEK -11.8 (-44.1) million where the effect from market valuation of the bond loan and costs related to the IPO during the second quarter of 2014, are the main reasons behind the positive change in net profit.

First half year (January-June)

EBITDA for the first half year amounted to SEK -36.8 (12.0) million. Provisions and non-recurring costs have negatively affected EBITDA during the period by SEK -35.4 million. Adjusted for these items, EBITDA amounted to SEK -1.4 million. The provisions for doubtful account receivables of net SEK -25.5 million have no effect on the cash flow.

Consolidated net profit for the first half year amounted to SEK -42.4 (-63.7) million. Net profit is next to the above provisions and non-recurring costs also affected by the market valuation of the bond of SEK 17.9 (-24.2) million.

Cash flow

Second quarter (April-June)

Operating cash flow (cash flow from operating activities after investments and changes in working capital) for the second quarter amounted to SEK -7.8 (-8.3) million. Cash flow from changes in working capital made a positive contribution with SEK 3.3 (3.6) million but was burdened by a negative contribution from Cash flow from operating activities with SEK -8.1 (-10.2) million. The implemented provisions for doubtful accounts receivables had no cash effect. The severance pay to the former CEO will be paid continuously for one year as of June 12 2015.

Since no activities were conducted in Cash flow from financing activities during the quarter, the total cash flow for the second quarter is the same amount as the Operating cash flow.

First half year (January-June)

Operating cash flow for the first half year 2015 amounted to SEK -16.4 (9.4) Mkr.

Total cash flow for the first half year was SEK -21.6 (230.1) million. Of this, repurchase of bonds amounted to SEK 5.2 million (corresponding to a nominal value of SEK 5 million).

Investments

Investments in property, plant and equipment during the second quarter amounted to SEK 2.2 (1.1) million, mainly related to the new integrated headquarters and production facility. Investment in intangible assets, mainly related to capitalized development costs, amounted to SEK 0.8 (0.7) million for the period. No investments were made in financial non-current assets during the period (-).

Financial position

The consolidated equity ratio was 64 % at 30 June 2015 (64 % at 31 December 2014) and equity amounted to SEK 476.3 (518.7 at 31 December 2014) million.

Bactiguard has a bond loan that matures on 12 December 2016, with an annual coupon of 11 %, payable in December each year. After completion of the set-off issue in connection with the listing of the company's shares on Nasdaq Stockholm in 2014, when holders of bonds with a total nominal value of SEK 222.5 million chose to offset bonds against shares, the nominal value of the outstanding bond loan was SEK 227.5 million. Subsequently, bonds have been repurchased in the market, which further has reduced the outstanding nominal value.

The bond is listed on Nasdaq Stockholm. During the first quarter, Bactiguard repurchased bonds with a total nominal value of SEK 5 million. During the second quarter, no repurchases have been completed. Along with the repurchases conducted during the third and fourth quarter of 2014, the total nominal value of the repurchased bonds amounted to SEK 44.0 million. The nominal value of the outstanding bond loan after completed repurchases is thereby SEK 183.5 million.

The bond is valued at market value and on 30 June 2015, net outstanding bond (nominal value SEK 183.5 million) was valued at SEK 172.5 million (price 94.0, which is a decrease from 100.0 at the end of the first quarter 2015).

Consolidated cash position at 30 June 2015 amounted to SEK 84.0 million. Net debt amounted to SEK 88.5 million (SEK 90.4 million at 31 December 2014).

The total assets of the group at 30 June 2015 amounted to SEK 745.0 million (811.1 million at 31 December 2014). The largest asset item in the balance sheet is technology related to Bactiguard's product portfolio, which at 30 June amounted to SEK 272.3 million (284.2 million at 31 December 2014).

Accounts receivable (short- and long term) amounted to SEK 56.1 million at 30 June 2015, which is a decrease of SEK 35.1 million since 31 December 2014. The decrease can be explained by payments on existing accounts receivables as well as provisions for doubtful account receivables during the first half year.

Other disclosures

The share and share capital

Trade in the Bactiguard share takes place on Nasdaq Stockholm under the ticker symbol "BACTI". The last price paid for the listed B share at 30 June 2015 was SEK 10.00, and the market capitalization amounted to SEK 333 million.

The share capital of Bactiguard at 30 June 2015 amounted to SEK 0.8 million divided into 29,302,373 B shares, each with one vote (29,302,373 votes) and 4,000,000 A shares, each with ten votes (40,000,000 votes). The total number of shares and votes in Bactiguard at 30 June 2015 amounted to 33,302,373 shares and 69,302,373 votes.

Ownership

At 30 June 2015, Bactiguard had 2,749 shareholders.
Shareholders No. of A shares No. of B shares Total number %
of capital
%
of votes
CHRISTIAN KINCH WITH FAMILY AND COMPANY 2 000 000 8 160 484 10 160 484 30,5% 40,6%
THOMAS VON KOCH WITH COMPANY 2 000 000 8 160 384 10 160 384 30,5% 40,6%
HANDELSBANKEN FONDER AB 1 012 828 1 012 828 3,0% 1,5%
ROBUR FÖRSÄKRING 889 571 889 571 2,7% 1,3%
STÅHLBERG, JAN 582 544 582 544 1,8% 0,8%
FRÖAFALL INVEST AB 516 000 516 000 1,6% 0,7%
LÄNSFÖRSÄKRINGAR JÖNKÖPING 474 377 474 377 1,4% 0,7%
NORDNET PENSIONSFÖRSÄKRING AB 466 071 466 071 1,4% 0,7%
SARGAS EQUITY AB 364 090 364 090 1,1% 0,5%
NORTAL CAPITAL AB 246 200 246 200 0,7% 0,4%
Total, major shareholders 4 000 000 20 872 549 24 872 549 74,7% 87,8%
Total, others 0 8 429 824 8 429 824 25,3% 12,2%
Total number of shares 4 000 000 29 302 373 33 302 373 100% 100%

Human resources

The average number of employees in the group in the period January to June 2015 amounted to 66 (56), of which 37 (30) women.

Accounting and valuation principles

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The interim report has been prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. The parent company financial statements have been prepared in accordance with the Annual Accounts Act and the Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

The accounting and valuation principles are unchanged from those applied in the Annual Report 2014. New standards effective from 1 January 2015 have had no material impact on the group. The new and amended standards and interpretations that have been issued but is effective for fiscal years beginning after 1 January, 2016 have not yet been applied by the Group.

Financial assets and financial liabilities measured at fair value in the balance sheet are classified into one of three levels based on the information used to determine fair value. Bactiguard bond loan is valued using level 1, is listed on Nasdaq Stockholm and is valued at quoted price.

Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may derive revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker and for which there is discrete financial information. The company's reporting of operating segments is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is the function that assesses the operating segment performance and decides how to allocate resources. The company has determined that the group executive management constitutes the chief operating decision maker.

The company is considered in its entirety to operate within one business segment.

Related-party transactions

Transactions between the company and its subsidiaries, which are related parties to the company, have been eliminated on consolidation.

Services and other transactions between companies within the group are charged according to commercial principles. Main shareholders Christian Kinch and Thomas von Koch have entered into guarantee commitments for Bactiguard AB's commitments to Samhall AB.

Other than as described above, neither Bactiguard nor its subsidiaries have granted loans, guarantees or sureties to, or for the benefit of, any directors or senior managers of the group. None of these persons has any direct or indirect participation in any other business transaction with any entity of the group which is, or was, unusual in its nature or with regard to its terms.

Parent company

Revenues consist of invoiced intercompany expenses (management fees). During the period the parent company received interest on its receivables from group companies. Company costs primarily relate to financial expenses of which the interest due on the bond loan is the single largest item. No investments were made during the period.

Risk factors

Companies within the group are exposed to various types of risk through their activities. The company continually engages in a process of identifying all risks that may arise and assessing how each of these risks shall be managed. The group's goal is to create an overall risk management programme that focuses on minimising potential adverse effects on the company's financial results. The company is primarily exposed to market related risks, operational risks and financial risks. A description of these risks can be found on page 21 and 38-40 of the Annual Report for 2014.

Financial targets

Bactiguard aims to create value and provide a good return for shareholders. One financial target is to grow by at least 30 % on average per year over the next five years. Further, to achieve an EBITDA margin of at least 30 % on an annual basis, with the aim of reaching 40 %. Bactiguard will continue to grow the business by strengthening its sales and marketing organization, developing products that complement the existing BIP portfolio and by entering into more licensing agreements. Bactiguard also aims to sign two to three new licensing agreements over the next five years.

Another financial target is to have an equity ratio of 30-50 %, and a long-term objective is for a dividend of 30-50 % of profit after tax. The company is in an expansion phase and will therefore prioritise growth over dividends in the coming years.

Condensed consolidated income statement

Amounts in TSEK Apr-Jun
2015
Apr-Jun
2014
Jan-Jun
2015
Jan-Jun
2014
Full year
2014
Revenues
License revenues 25 820 22 828 52 610 45 352 89 779
Territorial fees - 4 814 - 16 401 17 108
Sales of BIP products 1 023 1 455 1 121 1 525 2 160
Other revenue 890 2 139 2 836 2 460 9 811
27 733 31 236 56 567 65 738 118 857
Raw
materials and consumables
-1 886 -1 590 -3 384 -3 196 -6 102
Other external expenses -14 806 -15 183 -55 005 -27 283 -54 187
Personnel costs -18 469 -11 542 -30 672 -22 315 -44 996
Depreciation and amortisation -8 155 -7 422 -16 264 -14 851 -30 131
Other operating expenses -2 583 -733 -4 329 -922 -3 229
-45 899 -36 470 -109 654 -68 567 -138 646
Operating profit -18 166 -5 234 -53 087 -2 829 -19 788
Financial items
Financial income 11 100 910 18 527 940 3 641
Financial expenses -6 139 -41 020 -10 431 -64 215 -83 999
4 961 -40 110 8 096 -63 275 -80 358
Profit before tax -13 205 -45 344 -44 991 -66 104 -100 146
Tax for the period 1 388 1 262 2 561 2 431 5 104
Net profit/loss for the period -11 817 -44 082 -42 430 -63 673 -95 042
Attributable to:
Shareholders of the parent -11 817 -44 082 -42 430 -63 673 -95 042
Earnings per share, SEK* -0,35 -2,04 -1,27 -3,06 -3,80

Condensed consolidated statement of comprehensive income

Amounts in TSEK
Apr-Jun
Apr-Jun
Jan-Jun
Jan-Jun
2015
2014
2015
2014
Net profit/loss for the period
-11 817
-44 082
-42 430
-63 673
Other comprehensive income:
Full year
2014
-95 042
-
Items that w
ill not be reclassified to profit or loss for
-
-
-
-
the year
Items that w
ill be reclassified to profit or loss for the
year
Translation differences
609
-363
66
-159
-655
Other comprehensive income, after tax
609
-363
66
-159
-655
Total comprehensive income for the period
-11 208
-44 445
-42 364
-63 832
-95 697
Attributable to:
Shareholders of the parent
-11 208
-44 445
-42 364
-63 832
-95 697
Total earnings per share, SEK*
-0,34
-2,06
-1,27
-3,07
-3,83
Number of shares at the end of period ('000)
33 302
33 302
33 302
33 302
33 302
Weighted average number of shares ('000)
33 302
21 573
33 302
20 791
* no dilution effect
25 007

Condensed consolidated statement of financial position

Amounts in TSEK 2015-06-30 2014-06-30 2014-12-31
ASSETS
Non-current assets
Goodw
ill
226 292 226 292 226 292
Technology 272 321 296 128 284 225
Brands 25 572 25 572 25 572
Customer relationships 13 498 14 678 14 088
Capitalised development expenditure 8 464 7 784 7 772
Patents 1 226 1 469 1 454
Intangible assets 547 373 571 923 559 402
Improvements, leasehold 17 410 12 207 15 812
Machinery and other technical plant 9 154 6 293 9 763
Equipment, tools and installations 6 182 1 934 6 204
Property, plant and equipment 32 746 20 434 31 779
Accounts receivable 7 962 - 9 531
Investments in associates 1 368 1 293 1 368
Financial assets 9 330 1 293 10 899
Total non-current assets 589 449 593 650 602 080
Current assets
Inventory 10 422 6 524 8 974
Accounts receivable 48 098 94 276 81 625
Other current receivables 12 982 15 093 13 303
Cash and cash equivalents 84 034 235 062 105 147
Total current assets 155 536 350 955 209 049
TOTAL ASSETS 744 985 944 605 811 128
Equity attributable to shareholders of the parent
Share capital 833 833 833
Other equity 475 512 548 633 517 877
Total equity 476 345 549 466 518 710
Non-current liabilities
Bonds 172 490 229 206 195 569
Deferred tax liability 36 677 41 947 39 237
209 167 271 153 234 806
Current liabilities
Bank overdrafts 0 28 337 0
Accounts payable 6 367 16 774 10 995
Other current liabilities 2 869 3 450 3 938
Accrued expenses and deferred income 50 237 75 425 42 679
59 473 123 986 57 613
Total liabilities 268 640 395 139 292 418
TOTAL EQUITY AND LIABILITIES 744 985 944 605 811 128

Condensed consolidated statement of changes in equity

Amounts in TSEK
----------------- --

Equity attributable to shareholders of the parent

Share capital Other capital
contributions
Translation
reserve
Retained earnings
including net profit
for the period
Total equity
Opening balance, 1 January 2014 500 202 673 -139 -62 082 140 953
Profit/loss for the period - - - -63 672 -63 672
Other comprehensive income:
Translation differences - - -159 - -159
Total comprehensive income after tax 0 0 -159 -63 672 -63 831
Transactions with shareholders
Share issue 333 471 908 - 472 240
Repurchase of options - - - 104 104
Total transactions with shareholders 333 471 908 0 104 472 344
Closing balance, 30 June 2015 833 674 581 -298 -125 650 549 466
Opening balance, 1 January 2015 833 675 690 -794 -157 020 518 709
Profit/loss for the period - - - -42 430 -42 430
Other comprehensive income:
Translation differences - - 66 - 66
Total comprehensive income after tax 0 0 66 -42 430 -42 364
Transactions with shareholders
Share issue - - - - -
Repurchase of options - - - - -
Total transactions with shareholders 0 0 0 0 0
Closing balance, 30 June 2015 833 675 690 -728 -199 450 476 345

Condensed consolidated statement of cash flows

Amounts in TSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full year
2015 2014 2015 2014 2014
Cash flow from operating activities
Net profit/loss for the period -11 817 -44 082 -42 430 -63 672 -95 042
Accrued interest expense 5 047 6 256 10 203 12 513 -1 725
Adjustments for depreciation and amortisation and
other non-cash items -1 349 27 676 20 900 48 855 53 904
-8 119 -10 150 -11 327 -2 305 -42 863
Cash flow from changes in working capital
Increase/decrease inventory 1 391 -1 875 -1 403 -2 836 -5 936
Increase/decrease accounts receivable 250
2 206
-9 026
-5 623
226
2 347
-158
-5 198
2 982
-2 270
Increase/decrease other current receivables
Increase/decrease accounts payable
-5 294 9 100 -6 751 9 369 3 561
Increase/decrease other current liabilities 4 763 11 013 5 748 14 582 8 782
3 316 3 589 166 15 759 7 119
Cash flow from investing activities
Investments in intangible assets -784
-2 171
-688
-1 062
-1 256
-4 008
-1 692
-2 344
-2 397
-15 692
Investments in property, plant and equipment
Investments in associates
- - - - -144
-2 955 -1 750 -5 264 -4 036 -18 233
Operating cash flow -7 758 -8 311 -16 425 9 418 -53 976
Cash flow from financing activities
Share issue - 472 240 - 472 240 473 350
Amortisation of debt - -222 500 -5 150 -222 500 -321 495
Borrow
ings/loans granted/overdrafts
- -28 937 - -29 124 -
Repurchase of options - - - 104 104
0 220 803 -5 150 220 720 151 959
Cash flow for the period -7 758 212 492 -21 575 230 138 97 983
Cash and cash equivalents at start of period 91 851 23 205 105 147 5 417 5 417
Exchange difference in cash and cash equivalents -59 -635 462 -493 1 747
Cash and cash equivalents at end of period 84 034 235 062 84 034 235 062 105 147
Amounts in TSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full year
2015 2014 2015 2014 2014
Revenues 2 753 3 115 4 981 5 920 12 287
2 753 3 115 4 981 5 920 12 287
Operating expenses -8 629 -6 885 -11 556 -10 144 -18 604
-8 629 -6 885 -11 556 -10 144 -18 604
Operating profit/loss -5 876 -3 770 -6 575 -4 224 -6 317
Net financial items -5 519 -24 566 -10 879 -36 298 -46 713
Profit/loss after financial items -11 395 -28 336 -17 454 -40 522 -53 030
Tax for the period - - - - -
Net profit/loss for the period -11 395 -28 336 -17 454 -40 522 -53 030

Condensed parent company income statement

Condensed parent company statement of comprehensive income

The parent company has no items in 2015 or 2014 recognised in other comprehensive income. The period's statements for the parent company therefore present no separate statement of comprehensive income.

Condensed parent company balance sheet

2015-06-30 2014-06-30 2014-12-31
666 574 571 574 656 574
656 574
22 437 2 314 13 407
479 1 441 360
63 1 231 139
68 991 228 240 87 319
91 970 233 226 101 225
758 544 804 800 757 799
511 604 540 456 529 058
224 090 221 751 222 920
- - -
22 850 42 593 5 820
22 850 42 593 5 820
246 940 264 344 228 740
758 544 804 800 757 799
666 574 571 574

Forthcoming disclosures of information

12 November 2015 Interim report, 1 Jul – 30 Sep 2015 February 2016 Year-end report 2015

Contacts

For additional information, please contact:

Christian Kinch, CEO: +46 8 440 58 80

Fredrik Järrsten, CFO: +46 725 500 089

Cecilia Edström, Director of Sales, Marketing & Communications: +46 722 262 328

For additional information about Bactiguard's business, please visit the company's website:

www.bactiguard.se

Signatories to the report

The board of directors and the CEO certify that the interim report, to the best of their knowledge, provides a fair overview of the parent company's and the group's operations, financial position and results and describes the material risks and uncertainties faced by the parent company and the companies included in the group.

Stockholm, 13 August 2015

Stanley Brodén Mia Arnhult Chairman Board member

Peter Hentschel Christian Kinch
Board member CEO

This interim report is unaudited.

Bactiguard is required to disclose the information in this report under the provisions of the Securities Market Act (SFS 2007:528). The information was submitted for publication on 13 August 2015 at 08.00 CET.

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