AI assistant
ViroGates A/S — Interim / Quarterly Report 2019
Aug 21, 2019
8620_rns_2019-08-21_7b629d1d-ed37-4d92-b421-14ae75172808.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
ViroGates
Company announcement no. 10-2019
Birkerød, 21 August 2019
ViroGates Releases Second Quarter 2019 Results
ViroGates A/S (Nasdaq First North Denmark: VIRO), who delivers blood test systems for emergency departments in hospitals, today reported financial results for the second quarter 2019 (1 April – 30 June).
Highlights in the second quarter of 2019
Financial highlights
- Revenue grew by 34% to TDKK 1,465 (TDKK 1,092 in Q2 2018)
- Net operating expenses of TDKK 5,948 (TDKK 10,333 in Q2 2018)
- Net result of TDKK -4,349 (TDKK -8,724 in Q2 2018)
- Cash position of TDKK 50,165 per 30 June 2019 (TDKK 70,533 end Q2 2018)
Operational highlights
- Amager Hospital, Denmark was announced as a new clinical routine customer.
- After the end of the reporting period, ViroGates announced that Mark Christian Hvidberg da Silva will join ViroGates as CFO. May Britt Dyvelkov will remain in the company as VP Accounting (announced 14 August).
CEO Jakob Knudsen, says in a comment: "In the second quarter of 2019, the first tangible effects of our increased sales force activities in key markets materialised, as we increased the number of pilot users from 29 to 33 hospitals. We are confident that we will continue to engage more users and that a number of existing pilot users will be converted to clinical routine customers."
The report, which is approved by the Board of Directors, is unaudited.
For further information contact:
CEO Jakob Knudsen: Tel. (+45) 2113 1336, Email: [email protected]
Certified Advisor
Västra Hamnen Corporate Finance, Per Lönne: 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 550 clinical trials and studies which included more than 350,000 blood samples.
Blokken 45, 3460 Birkerød, Denmark
CVR 25734033 – www.virogates.com
suPARnostic® – The Risk status marker
ViroGates
OPERATIONAL REVIEW
During the second quarter of 2019, the initial effects of increased sales force activities materialised in key markets, the Nordics, Germany, Spain and France, where ViroGates has now deployed its own sales organisation. ViroGates engaged new hospital pilot users, which net increased from 29 to 33 hospitals during the second quarter alone. Pilot use is now operating in Spain (15), Denmark (5), Greece (3), Romania (3), Serbia (3), Sweden (2), France (1) and Egypt (1). ViroGates is seeking to shorten the pilot use period before hospitals are converted to clinical routine customers by optimizing the process for identification of potential customers and the agreements that are put in place before pilot use is initiated.
Validation work for another turbidimetric commercially available platform was initiated during the second quarter. The completion of the validation is expected during the second half of 2019. Following this validation, the suPARnostic® TurbiLatex will be commercially available on both Roche Diagnostics platforms and the new platform from another diagnostic company.
The co-development with GENSPEED Biotech GmbH announced earlier this year is progressing as planned and initial development work has been conducted. ViroGates still expects to finalize the development work in time for product launch in H1 2021.
FINANCIAL REVIEW
(Unless otherwise stated, financials are Q2 2019 numbers. Comparative figures for the corresponding period of 2018 are shown in brackets)
Revenue
Revenue increased to TDKK 1,465 (TDKK 1,092). Revenue in both periods derived primarily from large orders from one major customer in Denmark.
Total revenue in the first half of 2019 amounted to TDKK 2,571 (TDKK 1,665).
Expenses
Total operating expenses amounted to TDKK 5,948 (TDKK 10,333). There was an increase in R&D activities amounting to TDKK 271 and an increase in staff cost of TDKK 1,539 from hiring of new employees within sales and marketing. 2018 figures included IPO cost of TDKK 5,160.
Total operating expenses amounted to TDKK 10,796 in the first half of 2019 (TDKK 13,564).
Profit & loss
Operating loss came to TDKK -4,594 (TDKK -9,360). In 2018, IPO related costs amounted to TDKK -5,160. Net financial items amounted to TDKK 78 (TDKK 370). In 2018, net financial items were primarily interest on a convertible loan that was converted in connection with the IPO. Loss before tax was TDKK -4,672 (TDKK -9,730). Net loss amounted to TDKK -4,350 (TDKK -8,724). Earnings per share (EPS) were DKK -1.43 against an EPS of DKK -3.87 in the second quarter of 2018.
In the first half of 2019, operating loss came to TDKK 8,457 (TDKK 12,112), net financial items were TDKK -159 (TDKK -582), loss before tax was TDKK 9,548 (TDKK 12,694) and net loss amounted to TDKK 8,024 (TDKK 11,037).
Blokken 45, 3460 Birkerød, Denmark
CVR 25734033 – www.virogates.com
suPARnostic® - The Risk status marker
ViroGates
Cash flow and investments
Total cash flow amounted to TDKK -5,827 (TDKK +60,269). The positive cash flow in the second quarter of 2018 was due to the proceeds from the IPO in June 2018. Cash flow from operating activities amounted to TDKK -5,660 (TDKK -3,506). The outflow in the quarter was mainly due to the change in net working capital, which included increase in sales activities, hereunder new sales personnel. Investments in equipment amounted to TDKK -167 (TDKK 0). Cash flow from financing activities amounted to TDKK -0 (TDKK 63,775).
The total cash flow for the first half year 2019 was TDKK -9,919 (TDKK 69,067), cash flow from operating activities amounted to TDKK -9,749 (TDKK -5,602), investments in assets amounted to TDKK -170 (TDKK 0), and cash flow from financing activities amounted to TDKK 0 (TDKK 74,669).
Equity and net cash
As of 30 June 2019, equity was TDKK 52,987 (TDKK 66,961). On 30 June 2019 net cash amounted to TDKK 50,165 (TDKK 70,533).
Number of shares
At 30 June 2019 the total number of outstanding shares in ViroGates A/S was 3,034,347 (3,034,347).
Largest shareholders as of 30 June 2019
| 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% |
| Avanza Bank | 157,343 | 5.19% |
| JEO Holding ApS | 155,424 | 5.12% |
| THE WAY FORWARD APS | 152,745 | 5.03% |
| Others | 1,180,986 | 38.93% |
| Total no. shares outstanding | 3,034,347 | 100.00% |
Financial calendar
Q3 report
28 October 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.
Blokken 45, 3460 Birkerød, Denmark
CVR 25734033 – www.virogates.com
SUPAR notis - The Risk status marker
| INCOME STATEMENT | ||||||
|---|---|---|---|---|---|---|
| Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | 2018 | ||
| Note | ||||||
| NET REVENUE | 1,465,484 | 1,091,663 | 2,570,523 | 1,665,301 | 3,315,563 | |
| Cost of sales | -79,588 | -87,145 | -169,391 | -150,992 | -312,488 | |
| Other external expenses | 7 | -2,505,917 | -8,430,281 | -5,048,360 | -10,518,221 | -15,122,836 |
| GROSS PROFIT/LOSS | -1,120,021 | -7,425,763 | -2,647,228 | -9,003,912 | -12,119,761 | |
| Staff costs | 1 | -3,442,373 | -1,902,567 | -5,747,735 | -3,045,592 | -5,857,612 |
| Depreciation, amortisation, impairment | -31,250 | -31,250 | -62,500 | -62,500 | -124,999 | |
| OPERATING PROFIT/LOSS | -4,593,644 | -9,359,580 | -8,457,463 | -12,112,004 | -18,102,372 | |
| Other financial income | 1,306 | 600 | 1,494 | 2,416 | 9,236 | |
| Other financial expenses | -79,245 | -370,909 | -160,400 | -584,437 | -823,327 | |
| PROFIT/LOSS BEFORE TAX | -4,671,583 | -9,729,889 | -8,616,369 | -12,694,025 | -18,916,462 | |
| Tax on profit/loss for the year | 2 | 322,000 | 1,005,431 | 592,000 | 1,657,541 | 1,930,250 |
| PROFIT/LOSS FOR THE YEAR | -4,349,583 | -8,724,458 | -8,024,369 | -11,036,484 | -16,986,212 | |
| PROPOSED DISTRIBUTION OF PROFIT/LOSS | ||||||
| Retained profit | -4,349,583 | -8,724,458 | -8,024,369 | -11,036,484 | -16,986,212 | |
| TOTAL | -4,349,583 | -8,724,458 | -8,024,369 | -11,036,484 | -16,986,212 |
| BALANCE SHEET | ||||
|---|---|---|---|---|
| H1 2019 | H1 2018 | 2018 | ||
| ASSETS | Note | |||
| Other plant, machinery, tools and equipment | 55,000 | 180,000 | 117,500 | |
| Tangible fixed assets | 3 | 55,000 | 180,000 | 117,500 |
| Rent deposit and other receivables | 279,401 | 109,857 | 109,857 | |
| Fixed asset investments | 4 | 279,401 | 109,857 | 109,857 |
| FIXED ASSETS | 334,401 | 289,857 | 227,357 | |
| Finished goods and goods for resale | 829,191 | 566,003 | 693,868 | |
| Inventories | 829,191 | 566,003 | 693,868 | |
| Trade receivables | 808,725 | 735,150 | 430,546 | |
| Other receivables | 24,606 | 0 | 23,886 | |
| Receivables, corporation tax | 2,522,250 | 3,367,747 | 1,930,250 | |
| Prepayments and accrued income | 1,725,906 | 262,687 | 33,765 | |
| Receivables | 5,081,487 | 4,365,584 | 2,418,447 | |
| Cash and cash equivalents | 50,164,813 | 70,532,984 | 60,083,501 | |
| CURRENT ASSETS | 56,075,491 | 75,464,571 | 63,195,816 | |
| ASSETS | 56,409,892 | 75,754,427 | 63,423,173 | |
| BALANCE SHEET | ||||
| --- | --- | --- | --- | --- |
| H1 2019 | H1 2018 | 2018 | ||
| EQUITY AND LIABILITIES | Note | |||
| Share capital | 3,034,347 | 3,034,347 | 3,034,347 | |
| Retained profit | 49,952,301 | 63,926,404 | 57,976,670 | |
| EQUITY | 5 | 52,986,648 | 66,960,751 | 61,011,017 |
| Trade payables | 1,342,696 | 4,366,957 | 338,791 | |
| Other liabilities | 2,080,548 | 4,215,590 | 2,073,365 | |
| Convertible loan | 0 | 211,129 | 0 | |
| Current liabilities | 3,423,244 | 8,793,676 | 2,412,156 | |
| LIABILITIES | 3,423,244 | 8,793,676 | 2,412,156 | |
| EQUITY AND LIABILITIES | 56,409,892 | 75,754,427 | 63,423,172 | |
| Contingencies | 6 |
| CASH FLOW STATEMENT | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | 2018 |
|---|---|---|---|---|---|
| Profit/loss for the year | -4,349,583 | -8,724,458 | -8,024,369 | -11,036,484 | -16,986,215 |
| Reversed depreciation for the year | 31,250 | 31,250 | 62,500 | 62,500 | 125,000 |
| Reversed tax on profit/loss for the year | -322,000 | -1,005,431 | -592,000 | -1,657,541 | -1,930,250 |
| Corporation tax received | 0 | 0 | 0 | 0 | 1,710,206 |
| Change in inventory | -251,027 | 35,069 | -135,323 | 128,499 | 600 |
| Change in receivables | -1,393,342 | -362,419 | -2,071,039 | -243,386 | 268,270 |
| Change in current liabilities | 624,866 | 6,519,526 | 1,011,090 | 7,144,713 | 431,892 |
| CASH FLOWS FROM OPERATING ACTIVITY | -5,659,836 | -3,506,463 | -9,749,141 | -5,601,699 | -16,380,497 |
| Purchase of tangible fixed assets | 0 | 0 | 0 | 0 | 0 |
| Purchase of financial assets | -167,248 | 0 | -169,544 | 0 | -2,019 |
| CASH FLOWS FROM INVESTING ACTIVITY | -167,248 | 0 | -169,544 | 0 | -2,019 |
| Loans | 0 | -11,224,781 | 0 | -331,332 | 0 |
| Subscription of Share Capital | 0 | 74,999,925 | 0 | 74,999,925 | 74,999,925 |
| CASH FLOWS FROM FINANCING ACTIVITY | 0 | 63,775,144 | 0 | 74,668,593 | 74,999,925 |
| CHANGE IN CASH AND CASH EQUIVALENTS | -5,827,083 | 60,268,681 | -9,918,686 | 69,066,894 | 58,617,409 |
| Cash and cash equivalents at beginning of period | 55,991,911 | 10,264,314 | 60,083,513 | 1,466,101 | 1,466,090 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 50,164,827 | 70,532,995 | 50,164,827 | 70,532,996 | 60,083,499 |
| Specification of cash and cash equivalents at end of period | 50,164,827 | 70,532,996 | 50,164,827 | 70,532,996 | 60,083,499 |
| Cash and cash equivalents | 50,164,827 | 70,532,996 | 50,164,827 | 70,532,996 | 60,083,499 |
7
NOTES
| Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | 2018 | Note | |
|---|---|---|---|---|---|---|
| Staff costs | 1 | |||||
| Average number of employees | 10 | 5 | 10 | 5 | 6 | |
| Wages and salaries | 2,339,860 | 1,669,968 | 4,035,503 | 2,603,335 | 5,080,549 | |
| Pensions | 189,946 | 71,675 | 363,654 | 135,854 | 280,135 | |
| Social security costs | 13,114 | 8,309 | 24,467 | 15,171 | 33,906 | |
| Other staff costs | 899,452 | 152,614 | 1,324,111 | 291,231 | 463,025 | |
| 3,442,373 | 1,902,566 | 5,747,735 | 3,045,591 | 5,857,615 |
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
-322,000 -1,005,431 -592,000 -1,657,541 -1,930,250
-322,000 -1,005,431 -592,000 -1,657,541 -1,930,250
Tangible fixed assets
Other plants, machinery, tools and equipment
Cost at 1 January 2019 / 1 January 2018
Additions
Disposals
Cost at Q2 2019, Q2 2018, 2018
Depreciation and impairment losses at
1 January 2019 / 1 January 2018
Reversal of depreciation of assets disposed of
Depreciation for the year
Depreciation and impairment losses at
Q2 2019, Q2 2018, 2018
Carrying amount of
Q2 2019, Q2 2018, 2018
Fixed asset investments
Rent deposit and other receivables
Cost at 1 January 2019/1 January 2018
Additions
Cost at Q2 2019, Q2 2018, 2018
Carrying amount of
Q2 2019, Q2 2018, 2018
| 727,671 | 727,671 | 727,671 |
|---|---|---|
| 0 | 0 | 0 |
| 727,671 | 727,671 | 727,671 |
| 610,172 | 485,172 | 485,172 |
| 0 | 0 | 0 |
| 62,500 | 62,500 | 125,000 |
| 672,671 | 547,672 | 610,171 |
| 55,000 | 180,000 | 117,500 |
| 109,857 | 107,838 | 107,838 |
| --- | --- | --- |
| 169,544 | 2,019 | 2,019 |
| 279,401 | 109,857 | 109,857 |
5
NOTES
| Equity | 1 April 2019 - 30 June 2019 | |||
|---|---|---|---|---|
| Retained | ||||
| Share capital | profit | Total | ||
| Equity at 1 January 2019 | 3,034,347 | 57,976,672 | 61,011,019 | |
| Capital increase | 0 | 0 | 0 | |
| Proposed distribution of profit | -8,024,369 | -8,024,369 | ||
| Equity at 30 June 2019 | 3,034,347 | 49,952,303 | 52,986,650 | |
| 1 April 2018 - 30 June 2018 | ||||
| Share capital | Retained profit | Total | ||
| Equity at 1 January 2018 | 2,210,172 | 787,137 | 2,997,309 | |
| Capital increase | 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 2018 - 31 December 2018 | ||||
| Share capital | Retained | Total | ||
| Equity at 1 January 2018 | 2,210,172 | 787,137 | 2,997,309 | |
| Capital increase | 824,175 | 74,175,750 | 74,999,925 | |
| Proposed distribution of profit | -16,986,215 | -16,986,215 | ||
| Equity at 31 December 2018 | 3,034,347 | 57,976,672 | 61,011,019 |
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 42 months. There is a liability of DKK ('000) 1.171.
Other external expenses
| Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | 2018 | |
|---|---|---|---|---|---|
| R&D expenses in % of total expenses | 21.01% | 23.15% | 22.76% | 31.87% | 27.89% |
| Turb Assey | Intervention study+Turb | Turb Assey | Intervention study+Turb | Intervention study+Turb |
KPI
| DKK'000 | 1 April - 30 June | 1 January - 30 June | Full year 2018 | ||
|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | ||
| Net sales | 1,465,484 | 1,091,663 | 2,570,523 | 1,665,301 | 3,315,563 |
| Operating earnings | -4,593,644 | -9,359,580 | -8,457,463 | -12,112,004 | -18,102,372 |
| Earnings before tax | -4,671,583 | -9,729,889 | -8,616,369 | -12,694,025 | -18,916,462 |
| Net earnings | -4,349,583 | -8,724,458 | -8,024,369 | -11,036,484 | -16,986,212 |
| Earnings per share before dilution (DKK/share) | -1.43 | -3.87 | -2.64 | -4.94 | -6.44 |
| Earnings per share after dilution (DKK/share) | -1.26 | -3.53 | -2.32 | -4.51 | -5.73 |
| Average number of shares before dilution | 3,034,347 | 2,255,456 | 3,034,347 | 2,232,939 | 2,636,937 |
| Average number of shares after dilution | 3,463,321 | 2,471,871 | 3,463,321 | 2,449,354 | 2,963,495 |
| Number of shares before dilution | 3,034,347 | 3,034,347 | 3,034,347 | 3,034,347 | 3,034,347 |
| Number of shares after dilution | 3,463,321 | 3,467,721 | 3,463,321 | 3,467,721 | 3,465,521 |
| Equity ratio, % | 94% | 88% | 96% | ||
| Number of warrants outstanding, average | 428,974 | 433,374 | 429,524 | 212,015 | 326,558 |
| Number of warrants outstanding, end-period | 428,974 | 433,374 | 428,974 | 212,015 | 431,174 |
| Shareholders equity per share | 17.46 | 22.07 | 17.46 | 22.07 | 20.11 |
| Period-end share market price | 40.20 | 88.00 | 40.20 | 88.00 | 60.00 |
| Number of employees end of period | 10 | 6 | 10 | 6 | 8 |