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ViroGates A/S — Interim / Quarterly Report 2018
Jul 24, 2018
8620_rns_2018-07-24_f87980be-3f39-46c8-8ad6-f78dae782ff2.pdf
Interim / Quarterly Report
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ViroGates
Company announcement no. 4-2018
Birkerød, 24 July 2018
ViroGates Releases Second Quarter 2018 Financial Results
ViroGates A/S (Nasdaq First North Denmark: VIRO), who delivers blood test systems for the Emergency Departments in hospitals, today reported financial results for the second quarter 2018 (1 April – 30 June 2018). The report, which is approved by the Board of Directors, is unaudited and has the following main points:
- Revenue increased 185% compared to the same period last year to DKK 1,092 mill.
- ViroGates entered agreements with two new hospitals regarding the testing of suPARnostic® Quick Triage
- At the end of the quarter, 19 hospitals in 5 countries were testing suPARnostic®
- In June, the Company was listed on the Nasdaq First North stock exchange and received DKK 75,000 mill. (gross) which will be used to accelerate the commercial activities and strengthen the product development, clinical documentation and global patents.
- On the back of the IPO, we have initiated the strengthening of our commercial organization and our commercial activities
- The product suPARnostic® Turbilatex is on track for market introduction in Q3 2018
CEO Jakob Knudsen, says in a comment: "Q2 offered great commercial and strategic progress for ViroGates. The 19 hospitals that are testing our products are progressing well, and several of the hospitals are now evaluating results from their initial use of the products. In addition, we see that new sales and marketing activities generate growing interest from other hospitals to test our products in their daily clinical practice."
For further information contact:
CEO Jakob Knudsen
Tel. (+45) 2113 1336, Email: [email protected]
ViroGates A/S
CVR-nr. 25734033
Blokken 45, DK-340 Birkerød
www.virogates.com
Certified Advisor
Västra Hamnen Corporate Finance
Per Lönn
Tel. (+46) 40 200 250, Email: [email protected]
About ViroGates
ViroGates is an international Medtech company headquartered in Denmark. ViroGates develops and sells prognostic products to the healthcare sector. The products are used in hospital emergency services, in particular to make a clinical decision on hospitalization or discharge of emergency patients, which can lead to better clinical decisions, faster discharge and optimization of healthcare resources. The products can also be used for the prognosis of lifestyle-related diseases such as cardiovascular disease, type 2 diabetes, cancer, etc. The ViroGates test suPARnostic® measures the suPAR (Soluble urokinase Plasminogen Activator Receptor) protein in the bloodstream, and with the suPARnostic® Quick Triage test, hospital staff will get answers in just 20 minutes. The prognostic value of suPARnostic® is validated by more than 500 clinical trials and studies which included more than 300,000 blood samples.
Blokken 45, 3460 Birkerød, Denmark
www.virogates.com
suPARnostic® The Risk status marker
ViroGates
OPERATIONAL REVIEW
Second quarter 2018
During the quarter, ViroGates entered into two new agreements with two hospitals regarding the testing of the company's products: A hospital in Cyprus will test the use of suPARnostic® Quick Triage for investigation of acute medical patients and a hospital in Belarus will test the use of suPARnostic® Quick Triage for kidney transplantations. By the end of the quarter, 19 other hospitals in Spain, Romania, Serbia, Belarus and Cyprus are testing the company's products, and several of the hospitals are now evaluating results from the test phase.
ViroGates expects that the first of these hospitals will be converted to paying customers in the second half of 2018.
In the second quarter, the company strengthened its commercial activities, including participation in the annual conference on emergency medicine (SEMES) in Spain, the implementation of a new CRM system, a follow-up program for distributors in Europe, and the strengthening of contact with test customers and potential new customers. With the proceeds from the IPO, ViroGates can further accelerate the commercial rollout, and the initial focus is to strengthen the presence in the Spanish market and to begin the development of the German market.
The development of the product suPARnostic® Turbilatex is proceeding as planned, and ViroGates expects that the first product of this product series will be launched in the third quarter of 2018.
At the IPO, ViroGates offered between 659,341 and 824,175 new shares at DKK 91 per share. The offer was fully subscribed by approx. 1600 investors and resulted in gross proceeds of DKK 75 mill. ViroGates had the first trading day on Nasdaq First North in Denmark on June 26, 2018 under the symbol VIRO (ISIN: DK0061030574).
FINANCIAL REVIEW
Revenue
Revenue for the second quarter of 2018 increased to TDKK 1,092 compared to TDKK 0,383 in the second quarter of 2017. Revenue in the second quarter of 2018 derives primarily from large orders from one major customer in Denmark.
Total revenue for the first half of 2018 amounted to TDKK 1,665 compared with TDKK 1,585 in the first half of 2017.
Expenses
Total expenses amounted to TDKK 10,416 in the second quarter of 2018, which includes TDKK 5,160 in IPO expenses against total expenses of TDKK 3,001 in the same quarter last year. This increase was due to increase in sales and marketing (S&M) by TDKK 1,046, including fees for newly issued patents, and an increase of research & development and administrative expenses by TDKK 1,204.
Total expenses amounted to TDKK 13,706 in the first half of 2018, which includes TDKK 5,160 in IPO expenses, against total expenses of TDKK 5,479 in the first half of 2017. This increase was primarily related to higher costs in the second quarter as described above.
Blokken 45, 3460 Birkerød, Denmark
www.virogates.com
suPARnostic® - The Risk status marker
ViroGates
Profit & loss
Second quarter operating loss ended at TDKK 9,324 against TDKK 2,618 in the second quarter of 2017. Net financial items amounted to TDKK 0,406 in the second quarter of 2018, negatively impacted by interest on the convertible loan, against a cost of TDKK 0,032 in the second quarter of 2017. The convertible loan was converted to shares prior to the IPO. Result before tax was a loss of TDKK 9,730 in the second quarter of 2018, against a loss of TDKK 2,650 in the same quarter last year. A net loss of TDKK 8,724 was recorded in the second quarter of 2018, against a net loss of TDKK 2,067 in the same quarter last year. Earnings per share (EPS) was DKK -2,88 against an EPS of DKK -0,94 in the second quarter of 2017.
In the first half year of 2018, the company showed an operating loss of TDKK 12,041 against a loss of TDKK 3,894 in the first half of 2018. Net financial items amounted to a cost of TDKK 0,653 in the first half 2018, negatively impacted by interest on convertible loans of TDKK 0,568, compared to a loss of TDKK 0,066 in the first half of last year. The result before tax was TDKK 12,694 in the first half of 2018 against a loss of TDKK 3,960 in the first half of last year. A net loss of TDKK 11,036 was recorded in the first half of 2018, against a net loss of TDKK 3,089 in the first half of 2017. Earnings per share (EPS) was DKK -3,64 against an EPS of DKK -1,40 in the second quarter of 2017.
Cash flow and investments
The total cash flow for the second quarter of 2018 showed an inflow of TDKK 60,269, due to the proceeds from the IPO in June 2018, against an outflow of TDKK 1,139 in the second quarter of 2017. In the second quarter of 2018 cash flow from operating activities amounted to an outflow of TDKK 3,506 against an outflow of TDKK 1,009 in the second quarter of 2017. The outflow in the quarter is mainly due to the change in net working capital, which includes payments related to the IPO in June. Investments in equipment in the second quarter of 2018 amounted to TDKK 0,0 compared to TDKK 0,130 in the second quarter of 2017. Cash flow from financing activities in the second quarter of 2018 amounted to an inflow of TDKK 63,775, due to the proceeds from the IPO in June 2018, against an inflow of TDKK 0,0 in the second quarter of 2017.
The total cash flow for the first half of 2018 was an inflow of TDKK 69,067, due to the proceeds from the IPO in June 2018, against an outflow of TDKK 2,908 in the first half of 2017. In the first half of 2018 cash flow from operating activities amounted to an outflow of TDKK 5,602 against an outflow of TDKK 2,778 in the first half of 2017. The outflow in the first half is mainly due to the change in net working capital, which includes payments related to the IPO in June. Investments in equipment in the first half of 2018 amounted to TDKK 0,0 compared to TDKK 0,130 in the first half of 2017. Cash flow from financing activities in the first half of 2018 amounted to an inflow of TDKK 74,669, due to the proceeds from the IPO in June 2018 and convertible loan in the first quarter of 2018, against an inflow of TDKK 0,0 in the first half of 2017.
Equity and net cash
As of June 30, 2018, the company equity amounted to TDKK 66,961 against TDKK 5,896 at June 30, 2017. This mainly relates to the proceeds from the initial public offering of shares in connection with the listing on Nasdaq First North in June 2018. On June 30, 2018 net cash amounted to TDKK 70,533 compared to TDKK 4,915 at June 30, 2017.
Numbers of shares
At June 30, 2018 the total number of outstanding shares in ViroGates A/S was 3,034,347, against 2,210,172 at June 30, 2017.
Blokken 45, 3460 Birkerød, Denmark
www.virogates.com
SUPAR notic - The Risk status marker
ViroGates
Largest shareholders as of 30 june 2018
| Shareholder | Number of shares | Percent of capital |
|---|---|---|
| N. P. LOUIS-HANSEN APS. | 735,919 | 24.25% |
| KIM GINNERUP APS | 325,965 | 10.74% |
| 4AM APS | 325,965 | 10.74% |
| THE WAY FORWARD APS | 188,183 | 6.20% |
| JEO Holding ApS | 159,942 | 5.27% |
| Others | 1,298,373 | 42.80% |
| Total no. shares outstanding | 3,034,347 | 100.00% |
Financial calendar
Interim Report Q3 2018 24 October 2018
Annual Report 2018 27 March 2019
Annual General Meeting 25 April 2019
Forward-looking statements
Prospects about the future reflect ViroGates' current expectations for future events and results. The statements are by nature inherent in risks, uncertainties and other matters that are difficult to predict or out of control. The actual results may therefore differ from the expectations expressed. See also the description of risk factors in the prospectus, June 4, 2018.
Blokken 45, 3460 Birkerød, Denmark
www.virogates.com
suPARnostic™ - The Risk status marker
| INCOME STATEMENT | ||||||
|---|---|---|---|---|---|---|
| Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | 2017 | ||
| Note | ||||||
| NET REVENUE | 1,091,663 | 382,954 | 1,665,301 | 1,585,168 | 2,441,166 | |
| Cost of sales | -87,145 | -82,191 | -150,992 | -166,873 | -271,187 | |
| Other external expenses | 7 | -3,266,266 | -2,097,604 | -5,349,752 | -3,675,003 | -6,434,683 |
| GROSS PROFIT/LOSS | -2,261,748 | -1,796,841 | -3,835,443 | -2,256,708 | -4,264,704 | |
| Staff costs | 1 | -1,902,567 | -821,317 | -3,045,592 | -1,637,013 | -3,308,072 |
| Depreciation, amortisation, impairment | -31,250 | -31,250 | -62,500 | -56,000 | -118,500 | |
| OPERATING PROFIT/LOSS | -4,195,565 | -2,649,408 | -6,943,535 | -3,949,721 | -7,691,276 | |
| Other financial income | 600 | 6,224 | 2,416 | 6,527 | 15,845 | |
| Other financial expenses | -375,173 | -7,278 | -593,155 | -16,677 | -21,937 | |
| PROFIT/LOSS BEFORE EXTRAORDINARY POSTS | -4,570,138 | -2,650,462 | -7,534,274 | -3,959,871 | -7,697,368 | |
| Extraordinary posts | -5,159,750 | 0 | -5,159,750 | 0 | 0 | |
| PROFIT/LOSS BEFORE TAX | -9,729,889 | -2,650,462 | -12,694,025 | -3,959,871 | -7,697,368 | |
| Tax on profit/loss for the year | 2 | 1,005,431 | 583,102 | 1,657,541 | 871,172 | 1,710,206 |
| PROFIT/LOSS FOR THE YEAR | -8,724,458 | -2,067,360 | -11,036,484 | -3,088,700 | -5,987,162 | |
| PROPOSED DISTRIBUTION OF PROFIT/LOSS | ||||||
| Retained profit | -8,724,458 | -2,067,360 | -11,036,484 | -3,088,700 | -5,987,162 | |
| TOTAL | -8,724,458 | -2,067,360 | -11,036,484 | -3,088,700 | -5,987,162 |
| BALANCE SHEET | ||||
|---|---|---|---|---|
| H1 2018 | H1 2017 | 2017 | ||
| ASSETS | Note | |||
| Other plant, machinery, tools and equipment | 180,000 | 305,000 | 242,500 | |
| Tangible fixed assets | 3 | 180,000 | 305,000 | 242,500 |
| Rent deposit and other receivables | 109,857 | 107,838 | 107,838 | |
| Fixed asset investments | 4 | 109,857 | 107,838 | 107,838 |
| FIXED ASSETS | 289,857 | 412,838 | 350,338 | |
| Finished goods and goods for resale | 566,003 | 522,075 | 694,467 | |
| Inventories | 566,003 | 522,075 | 694,467 | |
| Trade receivables | 735,150 | 326,014 | 366,767 | |
| Other receivables | 0 | 0 | 329,407 | |
| Receivables, corporation tax | 3,367,747 | 2,366,461 | 1,710,206 | |
| Prepayments and accrued income | 262,687 | 88,752 | 60,295 | |
| Receivables | 4,365,584 | 2,781,227 | 2,466,675 | |
| Cash and cash equivalents | 70,532,984 | 4,914,585 | 1,466,090 | |
| CURRENT ASSETS | 75,464,571 | 8,217,887 | 4,627,232 | |
| ASSETS | 75,754,427 | 8,630,725 | 4,977,570 | |
| BALANCE SHEET | ||||
| H1 2018 | H1 2017 | 2017 | ||
| EQUITY AND LIABILITIES | Note | |||
| Share capital | 3,034,347 | 2,210,172 | 2,210,172 | |
| Retained profit | 63,926,404 | 3,685,600 | 787,137 | |
| EQUITY | 5 | 66,960,751 | 5,895,772 | 2,997,309 |
| Trade payables | 4,366,957 | 481,392 | 262,485 | |
| Other liabilities | 4,215,590 | 2,253,561 | 1,717,776 | |
| Convertible loan | 211,129 | 0 | 0 | |
| Current liabilities | 8,793,676 | 2,734,953 | 1,980,261 | |
| LIABILITIES | 8,793,676 | 2,734,953 | 1,980,261 | |
| EQUITY AND LIABILITIES | 75,754,427 | 8,630,725 | 4,977,570 | |
| Contingencies | 6 | |||
| Check | 0 | 0 | 0 |
| CASH FLOW STATEMENT | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | 2017 |
|---|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITY | -3,506,461 | -1,008,730 | -5,601,699 | -2,778,196 | -6,226,692 |
| CASH FLOWS FROM INVESTING ACTIVITY | 0 | -130,000 | 0 | -130,000 | -130,000 |
| CASH FLOWS FROM FINANCING ACTIVITY | 63,775,144 | 0 | 74,668,593 | 0 | 0 |
| CHANGE IN CASH AND CASH EQUIVALENTS | 60,268,683 | -1,138,730 | 69,066,894 | -2,908,196 | -6,356,692 |
NOTES
| Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | 2017 | Note | |
|---|---|---|---|---|---|---|
| Staff costs | 1 | |||||
| Average number of employees | 5 | 4 | 5 | 4 | 4 | |
| Wages and salaries | 1,787,900 | 734,710 | 2,826,389 | 1,408,752 | 2,902,258 | |
| Pensions | 71,675 | 60,193 | 135,854 | 118,142 | 234,042 | |
| Social security costs | 8,309 | 6,077 | 15,171 | 12,304 | 22,826 | |
| Other staff costs | 34,682 | 20,337 | 68,177 | 97,815 | 148,944 | |
| 1,902,566 | 821,317 | 3,045,591 | 1,637,013 | 3,308,069 |
The incentive programme for the board of executive, executive staff and the board of directors includes the option of subscribe shares during the priod from 2015 to 2018 for up to 9 pct. of the present share capital at a pre-determined price. The subscription cannot exceed one-third per year. Thus, in the period up to 2918 the subscription of shares cannot exceed a nominal amount of DKK 208,715 at price 32.77 - 68.27, equal to a total value of DKK ('000) 10,400.
Tax on profit/loss for the year
| Calculated tax on taxable income for the year | -1,005,431 | -583,102 | -1,657,541 | -871,172 | -1,710,206 |
|---|---|---|---|---|---|
| -1,005,431 | -583,102 | -1,657,541 | -871,172 | -1,710,206 |
Tangible fixed assets
| Other plants, machinery, tools and equipment | ||||
|---|---|---|---|---|
| Cost at 1 January 2018 / 1 January 2017 | 894,327 | 764,327 | 764,327 | |
| Additions | 0 | 130,000 | 130,000 | |
| Disposals | -166,656 | -166,656 | -166,656 | |
| Cost at H1 2018, H1 2017, 2017 | 727,671 | 727,671 | 727,671 | |
| Depreciation and impairment losses at | ||||
| 1 January 2018 / 1 January 2017 | 651,828 | 533,327 | 533,327 | |
| Reversal of depreciation of assets disposed of | -166,656 | -166,656 | -166,656 | |
| Depreciation for the year | 62,500 | 56,000 | 118,501 | |
| Depreciation and impairment losses at | ||||
| H1 2018, H1 2017, 2017 | 547,671 | 422,671 | 485,171 | |
| Carrying amount of | ||||
| H1 2018, H1 2017, 2017 | 180,000 | 305,000 | 242,500 |
Fixed asset investments
| Rent deposit and other receivables | |||||
|---|---|---|---|---|---|
| Cost at 1 January 2018/1 January 2017 | 107,838 | 105,522 | 107,838 | 105,522 | 105,522 |
| Additions | 2,019 | 2,316 | 2,019 | 2,316 | 2,316 |
| Cost at H1 2018, H1 2017, 2017 | 109,857 | 107,838 | 109,857 | 107,838 | 107,838 |
| Carrying amount of | |||||
| H1 2018, H1 2017, 2017 | 109,857 | 107,838 | 109,857 | 107,838 | 107,838 |
5
| NOTES | ||||
|---|---|---|---|---|
| Equity | 1 January 2018 - 30 June 2018 | |||
| Retained | ||||
| Share capital | profit | Total | ||
| Equity at 1 January 2018 | 2,210,172 | 787,137 | 2,997,309 | |
| Share issue | 824,175 | 74,175,750 | 74,999,925 | |
| Proposed distribution of profit | -11,036,484 | -11,036,484 | ||
| Equity at 30 June 2018 | 3,034,347 | 63,926,403 | 66,960,750 | |
| 1 January 2017 - 30 June 2017 | ||||
| Share capital | Retained profit | Total | ||
| Equity at 1 January 2017 | 2,210,172 | 6,774,299 | 8,984,471 | |
| Proposed distribution of profit | -3,088,700 | -3,088,700 | ||
| Equity at 30 June 2017 | 2,210,172 | 3,685,599 | 5,895,771 | |
| 1 January 2017 - 31 December 2017 | ||||
| Share capital | Retained | Total | ||
| Equity at 1 January 2017 | 2,210,172 | 6,774,299 | 8,984,471 | |
| Proposed distribution of profit | -5,987,162 | -5,987,162 | ||
| Equity at 31 December 2017 | 2,210,172 | 787,137 | 2,997,309 |
The Company's share capital consists of 3.034.347 shares of nom. 1 kr.
The Company has 2.585 treasury shares of nom. 1 kr. which equals 0,1% of the total share capital.
Under a resolution passed by the General Meeting, the Company may acquire treasury shares up to 10% of the share capital. Treasury shares are acquired for purposes of incentive programs for consultants and employees of the company
Contingencies etc
The company has entered into an agreement for office rent with a notice of termination period of 6 months. There is a liability of DKK ('000) 115.
| Other external expenses | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | 2017 |
|---|---|---|---|---|---|
| R&D expenses in % of total expenses | 23,17% | 46,10% | 31,90% | 49,29% | 43,90% |
| Turb Assey | Intervention study+Turb | Turb Assey | Intervention study+Turb | Intervention study+Turb |
KPI'S
| DKK'000 | 1 April - 30 June | 1 January - 30 June | Full year 2017 | ||
|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | ||
| Net sales | 1,091,663 | 382,954 | 1,665,301 | 1,585,168 | 2,441,166 |
| Operating earnings | -4,195,565 | -2,649,408 | -6,943,535 | -3,949,721 | -7,691,276 |
| Earnings before tax | -9,729,889 | -2,650,462 | -12,694,025 | -3,959,871 | -7,697,368 |
| Net earnings | -8,724,458 | -2,067,360 | -11,036,484 | -3,088,700 | -5,987,162 |
| Earnings per share before dilution (DKK/share) | -2,88 | -0,94 | -3,64 | -1,40 | -2,71 |
| Earnings per share after dilution (DKK/share) | -2,68 | -0,85 | -3,39 | -1,27 | -2,47 |
| Average number of shares before dilution | 3,034,347 | 2,210,172 | 3,034,347 | 2,210,172 | 2,210,172 |
| Average number of shares after dilution | 3,251,862 | 2,427,687 | 3,251,862 | 2,427,687 | 2,427,687 |
| Equity ratio, % | 88% | 68% | 60% | ||
| Number of shares outstanding, average | 217,515 | 217,515 | 217,515 | 217,515 | 217,515 |
| Number of shares outstanding, end-period | 217,515 | 217,515 | 217,515 | 217,515 | 217,515 |
| Shareholders equity per share | 21,07 | 1,67 | 21,07 | 1,67 | 0,36 |
| Period-end share market price | 88,00 | n/a | 88,00 | n/a | n/a |
| Number of employees end of period | 5 | 4 | 5 | 4 | 4 |