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Beskrivning
| Land | Finland |
|---|---|
| Lista | Small Cap Helsinki |
| Sektor | Hälsovård |
| Industri | Medicinteknik |
Optomed Plc Stock Exchange Release 4 August 2023 at 9.00, Helsinki
Optomed Plc: Half-year Report, January - June 2023
April - June 2023
- Revenue increased by 0.3 percent to EUR 3.7 (3.7) million.
- Devices segment revenue decreased by 6.5 percent to EUR 1.3 (1.4) million due to a slow quarter of the OEM and Chinese sales channels.
- Software segment revenue increased by 4.2 percent to EUR 2.5 (2.4) million driven by strong healthcare solution sales.
- EBITDA amounted to EUR -0.5 (-0.8) million corresponding to -12.4 (-21.8) percent of revenue, continuing the positive trend from previous quarters.
- After the review period on 3 August 2023 Optomed announced that Juho Himberg will start as Optomed's CEO 1 October 2023. Previously Juho Himberg has served as the CEO of Aidian (former Orion Diagnostica), a leading point-of-care diagnostics company with innovative products and services for improving the well-being and quality of life for people around the world. Prior to Aidian, Juho has held several leadership positions globally in healthcare and medical technology companies such as Orton, Stryker, C.R. Bard Inc. and Gambro. The CEO transition plan was announced 14 June 2023. Optomed's current CEO Seppo Kopsala and the Board of Directors have agreed that Kopsala will leave the CEO position once the new CEO is ready to start.
- Outlook unchanged: Optomed expects its full year 2023 revenue to grow compared to 2022.
- Aurora AEYE FDA clearance process: data collection continues.
- Revenue increased by 4.0 percent to EUR 7.2 (6.9) million.
- Devices segment revenue decreased by 10.9 percent to EUR 2.2 (2.4) million.
- Software segment revenue increased by 11.9 percent to EUR 5.1 (4.5) million.
- Adjusted EBITDA amounted to EUR -976 (-1,750) thousand corresponding to -13.5 (-25.2) percent of revenue.
Key figures
EUR, Q2/202 Q2/202 Change, H1/202 H1/202 Change, % 2022
thousand 3 2 % 3 2
Revenue 3,744 3,733 0.3% 7,222 6,947 4.0% 14,660
Gross 2,486 2,149 15.7% 4,962 4,339 14.4% 10,069
profit *
Gross 66.4% 57.6% 68.7% 62.4% 68.7%
margin % *
EBITDA -462 -813 43.1% -976 -1,750 44.2% -1,952
EBITDA -12.4% -21.8% -13.5% -25.2% -13.3%
margin *, %
Adjusted -462 -813 43.1% -976 -1,750 44.2% -1,952
EBITDA *
Adjusted -12.4% -21.8% -13.5% -25.2% -13.3%
EBITDA
margin
*, %
Operating -1,009 -1,355 25.5% -2,052 -2,815 27.1% -5,097
result
(EBIT)
Operating -27.0% -36.3% -28.4% -40.5% -34.8%
margin
(EBIT) *, %
Adjusted -1,009 -1,355 25.5% -2,052 -2,815 27.1% -5,097
operating
result
(EBIT) *
Adjusted -27.0% -36.3% -28.4% -40.5% -34.8%
operating
margin
(EBIT
margin)
*, %
Net profit/ -1,314 -1,328 1.1% -2,471 -2,698 8.4% -5,472
loss
Earnings -0.08 -0.10 13.0% -0.16 -0.20 19.5% -0.37
per share
Cash flow -468 -965 51.5% -913 -1,665 45.2% -2,370
from
operating
activities
Net Debt -883 -825 7.1% -883 -825 7.1 % -3,251
Net debt/ 0.7 0.2 0.7 0.2 1.7
Adjusted
EBITDA
(LTM)
Equity 63.6% 61.5% 63.6% 61.5% 65.0%
ratio *
R&D 362 222 63.3% 645 598 7.9% 1,198
expenses
personnel
R&D 150 147 2.5% 313 356 -12.0% 661
expenses
other
costs
Total R&D 512 368 39.1% 958 954 0.5% 1,859
expenses
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
CEO Review
Software segment and profitability continues to grow.
The sales growth of Optomed's Software business unit continued, driven by new healthcare software solution deliveries and increased recurring business. In addition to revenue growth, the Software Segment's profitability was very good during the review period. Similar to previous quarters, we are highly satisfied with this development, as it enables significant investments in launching new products into the market and expanding into the US market.
The Devices Segment that is currently in a transitional phase, had a relatively quiet quarter, although the gap from the comparison period of the previous year was not as significant as in the previous quarter. Sales of devices under our own brand, particularly through our international distribution channels, showed strong growth once again. However, OEM sales declined significantly compared to the previous year. As a result, the Devices Segment's sales slightly decreased compared to the comparison period. The trend where the number of devices sold under our own brand grows more than OEM sales in the Devices Segment, continued strongly during the quarter. This shift in trend has recently had a negative impact on revenue development but a positive effect on sales margins.
We are confident that our products are highly competitive and well-positioned in the global market. Our pipeline has expanded, including significant organizational tenders in multiple markets. With these initiatives, we anticipate a return to a growth trajectory for the Device's segment, driving revenue growth. Currently, our primary focus is on advancing the FDA approval process for the AI fundus camera Aurora AEYE, which is our most significant ongoing project. We are making progress during the review period and are approaching our target. However, until we have official updates to share, we will refrain from providing further comments on this matter. We have a good understanding of the FDA's expectations and are confident that we can meet them with the ongoing measures we have in place. Additionally, another important project for the company is the completion of the new device development project, which is currently in the CE approval phase.
The company's profitability and cash flow development continue positively. This is influenced by growing and profitable software sales, Devices segments improving sales margins, significant investment projects in their final stages, and declining fixed costs. Our products are technically excellent and competitive, and the development pipeline for new products is strong. The anticipated FDA clearance for AI fundus camera Aurora AEYE that we are targeting will be an extremely significant breakthrough for the company when it materializes.
I am satisfied with the current situation of the company and optimistic about its future prospects. The company and organization are ready to start the next phase.
Seppo Kopsala
CEO
Outlook 2023
Optomed expects its full year 2023 revenue to grow compared to 2022.
Telephone conference
A telephone conference for analysts, investors and media will be arranged on 4 August 2023 at 11.00 EET, (10.00 CET). The event will be held in English. The presentation material will be available at www.optomed.com/investors 10.00 EET at the latest.
The participants are requested to register for the call-in advance by email to sakari.knuutti@optomed.com.
Please see the call-in numbers below:
FI +358 9 856 263 00
SE +46 8 505 218 52
UK +44 20 3321 5273
US +1 646 838 1719
FR +33 1 70 99 53 92
The conference id is 179 385 659#
Please note that by dialing into the conference call, the participant agrees that personal information such as name and company name will be collected.
Group performance
April - June 2023
In April-June 2023, Group revenue increased by 0.3 percent to EUR 3,744 (3,733) thousand. Devices segment revenue decreased by 6.5 percent to EUR 1,273 (1,361) thousand in spite of strong performance of the global distributor sales as the OEM channel had a slow quarter. The Software segment revenue increased by 4.2 percent to EUR 2,471 (2,372) thousand as the healthcare solution sales continued to perform well.
In April-June 2023, the gross margin increased to 66.4 from 57.6 percent of last year as both segments improved their margins. The increase was mainly driven by the improved profitability of the healthcare solution sales.
EBITDA improved and it was EUR -462 (-813) thousand. The key driver for the improved EBITDA was improved gross profit, however, the OPEX decreased as well.
In April-June 2023, net financial items amounted to EUR -325 (6) thousand and consisted mainly of interest payments to financial institutions and the translation effect of Chinese RMB and USD to EUR.
January - June 2023
In January-June 2023, Group revenue increased by 4.0 percent to EUR 7,222 (6,947) thousand. The growth was driven by the Software segment as the Devices segment's revenue decreased by 10.9 percent while the Software segment's revenue increased by 11.9 percent.
The gross margin increased to 68.7 percent from 62.4 percent last year.
EBITDA amounted to EUR -976 (-1,750) thousand and EBIT was EUR -2,052 (-2,815) thousand. The improvement is due to the combination of improved gross profit and decreased OPEX.
Net financial items amounted to EUR -459 (77) thousand and consisted mainly of interest payments to financial institutions and the translation effect of Chinese RMB to EUR.
Cash flow and financial position
April - June 2023
In April-June 2023, the cash flow from operating activities amounted to EUR -468 (-965) thousand. Net cash used in investing activities was EUR -668 (-825) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR -348 (4,208) thousand.
Consolidated cash and cash equivalents at the end of the period amounted to EUR 5,691 (7,097) thousand. Interest-bearing net debt totalled EUR -883 (-825) thousand at the end of the period.
Net working capital was EUR 3,537 (4,239) thousand at the end of the period.
The Chinese customer that Optomed has large due trade receivables from continued to pay as scheduled.
January - June 2023
In January-June 2023, the cash flow from operating activities amounted to EUR -913 (-1,665) thousand.
Net cash used in investing activities was EUR -1,213 (-1,672) thousand and relates to capitalized development expenses.
Net cash from financing activities amounted to EUR -696 (3,595) thousand.
Devices segment
Optomed has two synergistic business segments: Devices and Software.
The Devices segment develops, commercializes, and manufactures easy-to-use, and affordable handheld fundus cameras, that are suitable for any clinic for screening of various eye diseases, such as diabetic retinopathy, glaucoma and AMD (Age Related Macular Degeneration).
EUR, thousand Q2/202 Q2/2022 Change, % H1/2023 H1/2022 Change, % 2022
3
Revenue 1,273 1,361 -6.5% 2,161 2,425 -10.9% 5,398
Gross profit * 674 642 5.0% 1,233 1,283 -3.9% 3,738
Gross margin % 53.0% 47.2% 57.0% 52.9 % 69.3%
*
EBITDA -217 -464 53.2% -643 -963 33.2% -670
EBITDA margin -17.1% -34.1% -29.8% -39.7 % -12.4%
*, %
Operating -578 -843 31.5% -1,356 -1,707 20.5% -3,159
result (EBIT)
Operating -45.4% -61.9% -62.8% -70.4 % -58.5%
margin (EBIT)
*, %
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
April-June 2023
In April-June 2023, the Devices segment revenue decreased by 6.5 percent to EUR 1,273 (1,361) thousand due to softness of the OEM channel. The global distributor sales continued to perform well.
The gross margin was 53.0 (47.2) percent. EBITDA was EUR -217 (-464) thousand or -17.1 (-34.1) percent of revenue. During the quarter, Optomed took actions to reduce operating costs especially in the support functions affecting both the Devices segment and the group functions.
January-June 2023
In January-June 2023, the Devices segment revenue decreased by 10.9 percent to EUR 2,161 (2,425) thousand.
The gross margin increased to 57.0 percent from 52.9 percent as the share of higher gross margin global distributor sales has increased compared to lower margin OEM sales.
EBITDA was EUR -643 (-963) thousand or -29.8 (-39.7) percent of revenue.
Software segment
Optomed has two synergistic business segments: Devices and Software.
The Software segment develops and commercializes screening software for diabetic retinopathy and cancer screening for healthcare organizations. The segment also distributes off-the-shelf products from selected partners to supplement its own solutions and expertise and provides software consultation to support the Devices segment screening solution projects.
EUR, thousand Q2/202 Q2/2022 Change, % H1/2023 H1/2022 Change, % 2022
3
Revenue 2,471 2,372 4.2% 5,061 4,522 11.9% 9,263
Gross profit * 1,812 1,507 20.2% 3,729 3,056 22.0% 6,330
Gross margin % 73.3% 63.5% 73.7% 67.6% 68.3%
*
EBITDA 578 478 20.7% 1,368 898 52.2% 2,079
EBITDA margin 23.4% 20.2% 27.0% 19.9% 22.4%
*, %
Operating 393 317 24.2% 1,009 580 74.0% 1,431
result (EBIT)
Operating 15.9% 13.3% 19.9% 12.8% 15.4%
margin (EBIT)
*, %
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
April - June 2023
In April-June 2023, the Software segment revenue increased by 4.2 percent to EUR 2,471 (2,372) thousand as the healthcare solutions business continued on its growth track.
The profitability improved due to good performance of the healthcare solution sales. Gross margin increased and was 73.3 (63.5) percent. EBITDA was EUR 578 (478) thousand or 23.4 (20.2) percent of revenue.
January - June 2023
In January-June 2023, the Software segment revenue increased by 11.9 percent to EUR 5,061 (4,522) thousand.
Gross margin increased and it was 73.3 (63.5) percent. EBITDA was EUR 1,368 (898) thousand or 27.0 (19.9) percent of revenue. The increased profitability was driven by improved performance of the healthcare solution sales.
Group-wide expenses
Group-wide expenses relate to functions supporting the entire group such as treasury, group accounting, marketing, legal, HR, and IT.
April - June 2023
Group-wide operating expenses amounted to EUR 823 (827) thousand.
January - June 2023
Group-wide operating expenses amounted to EUR 1,700 (1,685) thousand.
Personnel
Number of personnel at the end of the reporting period.
6/2023 6/2022
Devices 47 55
Software 46 43
Group common 22 22
Total 115 120
Corporate Governance
Optomed complies with Finnish laws and regulations, Optomed's Articles of Association, the rules of Nasdaq Helsinki and the Finnish Corporate Governance Code 2020 issued by the Securities Market Association of Finland. The code is publicly available at http://cgfinland.fi/en/. Optomed's corporate governance statement 2022 is available on the company website www.optomed.com/investors/.
Annual General Meeting
The Annual General Meeting held on 10 May 2023 adopted the financial statements for the financial period ended on 31 December 2022 and discharged the members of the Board of Directors and the CEO from liability for the financial period ended on 31 December 2022. The Annual General Meeting decided to reject the remuneration report for governing bodies. The decision made is advisory.
The Annual General Meeting resolved in accordance with the proposal of the Board of Directors that no dividend will be paid for the year 2022.
The number of members of the Board of Directors was confirmed as six. Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam were re-elected as members of the Board and Catherine Calarco and Ty Lee were elected as new members of the Board.
The Annual General Meeting confirmed the annual Board remuneration as follows:- Chairman of the Board EUR 36,000
- members of the Board EUR 18,000.
In addition, a meeting fee in the amount of EUR 300 is paid to the Chairpersons and EUR 200 to members of the Committees for each Committee meeting. 40 percent of the Board remuneration is paid in Optomed shares and 60 percent in cash. The remuneration will be paid once a year in August, after Optomed's H1 report has been announced.
The Annual General Meeting decided to re-elect KPMG Oy Ab, a firm of authorized public accountants, as the Company's auditor. KPMG Oy Ab has informed the Company that Authorized Public Accountant Heidi Hyry acts as the auditor with principal responsibility. Auditor's remuneration will be paid in accordance with an invoice approved by the Company.
The Annual General Meeting approved the authorization for the Board of Directors to repurchase Optomed's own shares and to accept them as pledge. Altogether no more than 1,654,135 shares may be repurchased or accepted as pledge. The authorization will be valid until the earlier of the end of the next Annual General Meeting or 18 months from the resolution of the Annual General Meeting.
The Annual General Meeting authorized the Board of Directors to decide on the issuance of shares and other special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Companies Act. The number of shares to be issued based on this authorization may not exceed 1,654,135. The Board of Directors is authorized to resolve on all terms and conditions of the issuance of shares and special rights entitling to shares, including the right to derogate from the pre-emptive right of the shareholders. The authorization will be valid until the earlier of the end of the next Annual General Meeting or 18 months from the resolution of the Annual General Meeting.
The Annual General Meeting decided to amend the Articles of Association so that the minimum number of the members of the Board of Directors was reduced from five members to four.
Decisions of the Board of Directors:
At its meeting held after the Annual General Meeting, the Board of Directors elected from among its members Petri Salonen as its Chairman. The committee members were elected as follows:
Audit Committee:- Reijo Tauriainen (Chairman)
- Catherine Calarco
- Anna Tenstam
- Seppo Mäkinen (Chairman)
- Catherine Calarco
- Ty Lee
Shares and shareholders
The Company has one share series with all shares having the same rights. At the end of the review period Optomed Plc's share capital consisted of 16,541,355 shares and the Company held 370,066 shares in the treasury which approximately corresponds to 2.3 percent of the total amount of the shares and votes. Additional information with respect to the shares, shareholding and trading can be found on the Company's website www.optomed.com/investors/.
Risks and uncertainties
The key risks and uncertainties are described in the company's Annual Report 2022 which was published on 2 March 2023. The complete report is available at https://www.optomed.com/investors/. The risk position of Optomed has not changed since then.
Flagging notifications
5 June 2023 Cenova Capital notified that its total holdings in Optomed shares and votes has decreased to 9.96% of all of the registered shares in Optomed.
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2023- 3 November 2023 Interim Report for 1 January - 30 September 2023
For more information, contact
Sakari Knuutti, CFO
Tel: +358 (0)50 562 4077
E-mail: sakari.knuutti@optomed.com
Seppo Kopsala, CEO
Tel: +358 (0)40 555 1050
E-mail: seppo.kopsala@optomed.com
About Optomed
Optomed is a Finnish medical technology company and one of the leading providers of handheld fundus cameras and screening software. Optomed combines handheld screening devices with software and artificial intelligence with the aim to transform the diagnostic process of blinding eye-diseases such as rapidly increasing diabetic retinopathy. In its business Optomed focuses on eye-screening devices and software solutions related R&D in Finland and sales through different channels in over 60 countries.
www.optomed.com
Alternative Performance Measures
Optomed uses certain alternative performance measures (APMs) with the purpose to provide a better understanding of how the business develops. These APMs, as defined, cannot be fully compared with other companies' APMs.
Alternative Definition
Performance
Measures
Gross profit Revenue + Other operating income - Materials and services
expenses
Gross margin, % Gross profit / Revenue
EBITDA Operating result before depreciation, amortization and
impairment losses
EBITDA margin, % EBITDA / Revenue
Operating result Profit/loss after depreciation, amortization and
impairment losses
Operating margin, % Operating result / Revenue
Adjusted operating Operating result excluding items affecting comparability
result
Adjusted operating Adjusted operating result / Revenue
margin, %
Adjusted EBITDA EBITDA excluding items affecting comparability
Adjusted EBITDA Adjusted EBITDA / Revenue
margin, %
Items affecting Material items outside ordinary course of business
comparability including restructuring costs, net gains or losses from
sale of business operations or other non-current assets,
strategic development projects, external advisory costs
related to capital reorganisation, impairment charges on
non-current assets incurred in connection with
restructurings, compensation for damages and transaction
costs related to business acquisitions.
Net Debt Interest-bearing liabilities (borrowings from financial
institutions, government loans and subordinated loans) -
cash and cash equivalents (excl. lease liabilities
according to IFRS 16)
Net Debt / Adjusted Net Debt / Adjusted EBITDA (for the last twelve months,
EBITDA (LTM), times LTM)
Earnings per share Net result / Weighted average number of outstanding
shares
Equity ratio, % Total equity / Total assets
R&D expenses Employee benefit expenses for R&D personnel and other
operational expenses related to R&D activities
Consolidated income statement
In thousands of euro Q2/2023 Q2/202 H1/202 H1/202 2022
2 3 2
Revenue 3,744 3,733 7,222 6,947 14,660
Other operating income 34 0 34 37 857
Materials and services -1,292 -1,584 -2,294 -2,645 -5,449
Employee benefit -2,190 -2,124 -4,382 -4,367 -8,827
expenses
Depreciation, -547 -542 -1,076 -1,066 -3,145
amortization and
Impairment losses
Other operating expenses -758 -838 -1,556 -1,722 -3,193
Operating result -1,009 -1,355 -2,052 -2,815 -5,097
Finance income 38 302 106 418 569
Finance expenses -363 -296 -565 -340 -1,024
Net finance expenses -325 6 -459 77 -454
Profit (loss) before -1,334 -1,348 -2,511 -2,738 -5,551
income taxes
Income tax expense 20 20 40 39 79
Loss for the period -1,314 -1,328 -2,471 -2,698 -5,472
Loss for the period
attributable to
Owners of the parent -1,314 -1,328 -2,471 -2,698 -5,472
company
Loss per share
attributable to owners
of
the parent company
Weighted average number 15,691,727 13,797,968 15,691,727 13,797,968 14,640,697
of shares
Basic loss per share -0.08 -0.10 -0.16 -0.20 -0.37
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro Q2/2023 Q2/2022 H1/2023 H1/2022 2022
Loss for the period -1,314 -1,328 -2,471 -2,698 -5,472
Other comprehensive income
Foreign currency translation 166 -43 244 -120 139
difference
Other comprehensive income, net of 166 -43 244 -120 139
tax
Total comprehensive loss -1,148 -1,372 -2,227 -2,818 -5,333
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands of euro June 30, 2023 June 30, 2022 Dec 31, 2022
ASSETS
Non-current assets
Goodwill 4,256 4,256 4,256
Development costs 7,200 7,115 6,562
Customer relationships 1,053 1,275 1,164
Technology 483 585 534
Other intangible assets 381 355 379
Total intangible assets 13,374 13,586 12,895
Tangible assets 769 664 852
Right-of-use assets 1,231 1,029 1,448
Deferred tax assets 17 14 15
Total non-current assets 15,391 15,293 15,210
Current assets
Inventories 2,954 3,161 2,998
Trade and other receivables 4,590 5,190 4,568
Cash and cash equivalents 5,691 7,079 8,524
Total current assets 13,235 15,429 16,090
Total assets 28,627 30,722 31,300
In thousands of euro June 30, 2023 June 30, 2022 Dec 31, 2022
EQUITY
Share capital 80 80 80
Share premium 504 504 504
Reserve for invested 46,912 43,089 46,896
non-restricted equity
Translation 296 -207 51
differences
Retained earnings -27,117 -21,879 -21,717
Profit (loss) for the -2,471 -2,698 -5,472
financial year
Total equity 18,203 18,888 20,342
LIABILITIES
Non-current
liabilities
Borrowings from 2,983 3,822 3,380
financial
institutions
Government loans 837 1,871 906
Lease liabilities 744 640 1,058
Deferred tax 349 425 387
liabilities
Total Non-current 4,913 6,758 5,731
liabilities
Current liabilities
Borrowings from 794 368 794
financial
institutions
Government loans 193 193 193
Lease liabilities 515 405 412
Trade and other 4,008 4,112 3,828
payables
Total current 5,510 5,077 5,227
liabilities
Total liabilities 10,423 11,835 10,957
Total equity and 28,627 30,722 31,300
liabilities
Consolidated statement of changes in shareholders' equity
Equity attributable to owners of the parent company
+-------------+-------+-------+-----------+-----------+--------+------+
|In thousands |Share |Share |Reserve |Translation|Retained|Total |
|of euro |capital|premium|for |differences|earnings| |
| | | |invested | | | |
| | | |non | | | |
| | | |-restricted| | | |
| | | |equity | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |46,896 |51 |-27,189 |20,342|
|January 1, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Loss for the | | | | |-2,471 |-2,471|
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Translation | | | |244 | |244 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | | |244 |-2,471 |-2,227|
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share options| | | 16 | |72 |88 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | |16 | |72 |88 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |46,912 |296 |-29,588 |18,203|
|June 30, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
Equity attributable to owners of the parent company
+-------------+-------+-------+-----------+-----------+--------+------+
|In thousands |Share |Share |Reserve |Translation|Retained|Total |
|of euro |capital|premium|for |differences|earnings| |
| | | |invested | | | |
| | | |non | | | |
| | | |-restricted| | | |
| | | |equity | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |38,526 |-88 |-21,970 |17,052|
|January 1, | | | | | | |
|2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Loss for the | | | | |-2,698 |-2,698|
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Translation | | | |-120 | |-120 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | | |-120 |-2,698 |-2,818|
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share options| | | 4,563 | |91 |4,654 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | |4,563 | |91 |4,654 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | |0 |
|adjustments | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |43,089 |-207 |-24,577 |18,888|
|June 30, | | | | | | |
|2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
Equity attributable to owners of the parent company
+-------------+-------+-------+-----------+-----------+--------+------+
|In thousands |Share |Share |Reserve |Translation|Retained|Total |
|of euro |capital|premium|for |differences|earnings| |
| | | |invested | | | |
| | | |non | | | |
| | | |-restricted| | | |
| | | |equity | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |38,526 |-88 |-21,970 |17,052|
|January 1, | | | | | | |
|2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Loss for the | | | | |-5,472 |-5,472|
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Translation | | | |139 | |139 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | | |139 |-5,472 |-5,333|
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share issue | | | 8,371 | | |8,371 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share options| | | | |253 |253 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | |8,371 | |253 |8,624 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |46,896 |51 |-27,189 |20,342|
|December | | | | | | |
|31, 2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
Consolidated cash flow statement
In thousands of euro Q2/202 Q2/202 H1/2023 H1/2022 2022
3 2
Cash flows from operating activities
Loss for the financial year -1,314 -1,328 -2,471 -2,698 -5,472
Adjustments:
Depreciation, amortization and 547 542 1,076 1,066 3,145
impairment
losses
Finance income and finance expenses 333 403 470 330 618
Other adjustments -44 15 -55 30 -770
Cash flows before change in net -479 -369 -980 -1,273 -2,479
working capital
Change in net working capital:
Change in trade and other receivables -252 -872 -21 -438 204
(increase (-) / decrease (+))
Change in inventories 82 115 -14 -184 -68
(increase (-) / decrease (+))
Change in trade and other payables 223 568 139 671 172
(increase (+) / decrease (-))
Cash flows before finance items -426 -557 -875 -1,223 -2,171
Interest paid -34 -10 -52 -22 -76
Other finance expenses paid -7 -398 13 -420 -123
Interest received 0 0 0 0 0
Net cash from operating activities (A) -468 -965 -913 -1,665 -2,370
Cash flows from investing activities
Capitalization of development expenses -606 -750 -1,124 -1,281 -2,249
Acquisition of tangible assets -62 -75 -89 -391 -780
Net cash used in investing activities -668 -825 -1,213 -1,672 -3,029
(B)
Cash flows from financing activities
Proceeds from share subscriptions 12 4,892 16 4,945 9,012
Share issue transaction costs 0 -382 0 -382 -682
Proceeds from loans and borrowings 0 14 0 14 0
Repayment of loans and borrowings -235 -213 -465 -778 -912
Repayment of lease liabilities -125 -103 -247 -205 -415
Net cash from financing activities (C) -348 4,208 -696 3,595 7,003
Net cash from (used in) operating, -1,483 2,418 -2,822 257 1,605
investing and financing activities
(A+B+C)
Cash and cash equivalents at beginning 7,179 4,630 8,524 6,804 6,804
of period
Effect of movements in exchange rate -5 31 -11 17 115
on cash held
Cash and cash equivalents at end of 5,691 7,079 5,691 7,079 8,524
period
Selected notes
Corporate information and basis of accounting
Corporate information
Optomed is a Finnish medical technology group (hereafter `Optomed' or `Group') that specialises in handheld fundus cameras and solutions for screening of blinding eye diseases, established in 2004.
The Group's parent company, Optomed Plc (hereafter the `Company'), is a Finnish public limited liability company established under the laws of Finland, and its business ID is 1936446-1. It is domiciled in Oulu, Finland and the Company's registered address is Yrttipellontie 1, 90230 Oulu, Finland.
Basis of accounting
Optomed's consolidated financial statements has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The preparation of this interim report also takes into account the amendments to IFRS standards that have become effective by January 1, 2023.
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Group`s last annual consolidated financial statements as at and for the year ended 31 December 2022. This Interim financial statements do not include all of the information required by IAS 34: selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group`s financial position and performance since the last annual financial statements.
All presented figures have been rounded so the sum of the individual figures may differ from the presented total figure.
Financial ratios have been calculated using exact figures.
This report has been authorized for issue by the company`s board of directors.
Critical management judgments and related estimates and assumptions
The preparation of financial statements under IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the end of the reporting period as well as the reported amounts of income and expenses during the reporting period. These estimates and assumptions are based on historical experience and other justified assumptions, such as future expectations, that Optomed management believes are reasonable under the circumstances at the end of the reporting period and the time when they were made.
Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an on-going basis and when preparing financial statements. Changes in accounting estimates may be necessary if there are changes in the circumstances on which the estimate was based, or as a result of new information or more experience. Such changes are recognized in the period in which the estimate or the assumption is revised.
Use of judgment and estimates
Judgements that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognised in the financial statements, relate to the following areas:
- Determining trade receivables credit risk
- capitalisation of development costs: determination of development expenditure eligible for capitalisation
- impairment testing of development expenditures
Reportable segments
Q2/2023
In thousands of euro Devices Software Group Total
Admin
External revenue 1,273 2,471 0 3,744
Net operating expenses -599 -659 0 -1,258
Margin 674 1,812 0 2,486
Depreciation and amortization -360 -184 -2 -547
Other expenses -891 -1,234 -823 -2,948
Operating result -578 393 -825 -1,009
Finance items 0 0 -325 -325
Loss before tax expense -578 393 -1,149 -1,334
Q2/2022
In thousands of euro Devices Software Group Total
Admin
External revenue 1,361 2,372 0 3,733
Net operating expenses -719 -865 0 -1,584
Margin 642 1,507 0 2,149
Depreciation and amortization -378 -162 -2 -542
Other expenses -1,106 -1,029 -827 -2,961
Operating result -843 317 -829 -1,355
Finance items 0 0 6 6
Loss before tax expense -843 317 -822 -1,348
H1/2023
In thousands of euro Devices Software Group Total
Admin
External revenue 2,161 5,061 0 7,222
Net operating expenses -928 -1,332 0 -2,260
Margin 1,233 3,729 0 4,962
Depreciation and amortization -713 -359 -4 -1,076
Other expenses -1,876 -2,362 -1,700 -5,938
Operating result -1,356 1,009 -1,704 -2,052
Finance items 0 0 -459 -459
Loss before tax expense -1,356 1,009 -2,163 -2,511
H1/2022
In thousands of euro Devices Software Group Total
Admin
External revenue 2,425 4,522 0 6,947
Net operating expenses -1,143 -1,466 0 -2,609
Margin 1,283 3,056 0 4,339
Depreciation and amortization -743 -319 -4 -1,066
Other expenses -2,246 -2,158 -1,685 -6,088
Operating result -1,707 580 -1,689 -2,815
Finance items 0 0 77 77
Loss before tax expense -1,707 580 -1,611 -2,738
2022
In thousands of euro Devices Software Group Total
Admin
External revenue 5,398 9,263 0 14,660
Net operating expenses -1,659 -2,933 0 -4,592
Margin 3,738 6,330 0 10,069
Depreciation and amortization -2,489 -649 -8 -3,145
Other expenses -4,408 -4,251 -3,361 -12,020
Operating result -3,159 1,431 -3,368 -5,097
Finance items 0 0 -454 -454
Loss before tax expense -3,159 1,431 -3,823 -5,551
Revenue
In thousands of euro Q2/2023 Q2/2022 H1/2023 H1/2022 2022
Finland 2,391 2,066 4,911 4,172 8,606
Rest of the Europe 234 682 470 997 1,715
Rest of the World 1,119 985 1,841 1,778 4,340
Total 3,744 3,733 7,222 6,947 14,660
Other operating income
In thousands of euro Q2/2023 Q2/2022 H1/2023 H1/2022 2022
Other operating income 34 0 34 37 857
Total 34 0 34 37 857
Other operating expenses
Other operating expenses Q2/2023 Q2/2022 H1/2023 H1/2022 2022
Sales and marketing -192 -204 -339 -378 -784
Research and development -43 -82 -132 -263 -361
General and administration -523 -551 -1,085 -1,081 -2,049
Total operating expenses -758 -838 -1,556 -1,722 -3,193
Other operating expenses also comprise changes in expected credit losses and realized credit losses.
Tangible assets
In thousands of euro Machinery and Machinery and Machinery
equipment equipment and
30.6.2023 30.6.2022
equipment
31.12.2022
Cost
Balance at January 1 3,512 2,721 2,721
Additions 88 405 791
Balance at End of 3,600 3,126 3,512
Period
Accumulated
depreciation and
impairment losses
Balance at January 1 -2,660 -2,288 -2,288
Depreciation -170 -174 -372
Balance at end of -2,830 -2,462 -2,660
period
Carrying amount at 852 433 433
January 1
Carrying amount at June 769 664 852
30/ December 31
Leases
Leased tangible assets
In thousands of euro 30.6.2023 30.6.2022 2022
Additions to right-of-use 280 35 671
assets
Depreciation change for -253 -211 -428
right-of-use assets
Carrying amount at the 1,231 1,029 1,448
end of the reporting
period
Leased tangible assets
comprise business
premises and are
presented as a separate
line item Right-of-use
assets in the
consolidated balance
sheet.
Lease liabilities
In thousands of euro 30.6.2023 30.6.2022 2022
Current 515 405 412
Non-current 744 640 1,058
Total 1,260 1,044 1,470
The above liabilities are presented on the line item Lease liabilities (non-current / current) in the consolidated balance sheet, based on their maturity.
Intangible assets and goodwill
30.06.2023
In thousands Goodwill Development Customer Technology Other Total
of euro costs relationships intangible
assets
Cost
Balance at 4,256 13,978 2,222 1,023 1,054 22,533
January 1
Additions 0 1,099 0 0 33 1,132
Balance at 4,256 15,077 2,222 1,023 1,087 23,665
June 30
Accumulated
amortization
and
impairment
losses
Balance at 0 -7,416 -1,057 -489 -676 -9,638
January 1
Amortization 0 -461 -112 -51 -30 -653
Balance at 0 -7,877 -1,169 -540 -706 -10,291
June 30
Carrying 4,256 6,562 1,164 534 379 12,895
amount at
January 1
Carrying 4,256 7,200 1,053 483 381 13,374
amount at
June
30
30.06.2022
In thousands Goodwill Development Customer Technology Other Total
of euro costs relationships intangible
assets
Cost
Balance at 4,256 11,815 2,222 1,023 951 20,267
January 1
Additions 0 1,245 0 0 48 1,293
Balance at 4,256 13,060 2,222 1,023 999 21,560
June 30
Accumulated
amortization
and
impairment
losses
Balance at 0 -5,477 -836 -387 -593 -7,292
January 1
Amortization 0 -468 -111 -51 -51 -681
Balance at 0 -5,945 -947 -438 -644 -7,973
June 30
-
Carrying 4,256 6,338 1,386 636 358 12,975
amount at
January 1
Carrying 4,256 7,115 1,275 585 355 13,586
amount at
June
30
31.12.2022
In thousands Goodwill Development Customer Technology Other Total
of euro costs relationships intangible
assets
Cost
Balance at 4,256 11,815 2,222 1,023 951 20,267
January 1
Additions 0 2,163 0 0 103 2,266
Balance at 4,256 13,978 2,222 1,023 1,054 22,533
December 31
Accumulated -
amortization
and
impairment
losses
Balance at 0 -5,477 -836 -387 -593 -7,292
January 1
Amortization 0 -899 -222 -102 -83 -1,306
Impairment 0 -1,040 0 0 0 -1,040
losses
Balance at 0 -7,416 -1,057 -489 -676 -9,638
December 31
-
Carrying 4,256 6,338 1,386 636 358 12,975
amount at
January 1
Carrying 4,256 6,562 1,164 534 379 12,895
amount at
December 31
Financial assets
Carrying amounts - at amortized cost
In thousands of euro 30.6.2023 30.6.2022 31.12.2022
Trade receivables
Recourse factoring 0 358 324
Other trade receivables 3,442 3,673 3,232
Total trade receivables 3,442 4,031 3,556
Cash and cash equivalents 5,691 7,079 8,524
Total 9,133 11,109 12,080
Due to overdue trade receivables, financial assets are subject to an increased risk of credit loss.
Exposure to credit risk and loss allowance
Optomed considers it has heightened risk regarding Chinese customer's trade receivables. The credit risk concentration has been formed and is associated with an increased credit loss risk due to overdue trade receivables. Chinese customer has paid its overdue receivables according to planned schedule.
In thousands Gross carrying amount Weighted av. Loss
of euro
loss rate% allowance
At June 30,
2023
Current (not 0.5% 9
past due) 1,877
Past due
1-30 days 1.5% 3
170
31-60 days 4% 1
35
61-90 days 9% 1
8
More than 90 12% 33
days past due 279
Specific loss 30% 480
allowance 1,600
Total 528
3,970
In thousands Gross carrying amount Weighted av. Loss
of euro
loss rate% allowance
At June 30,
2022
Current (not 1,800 0.5% 9
past due)
Past due
1-30 days 172 1.5% 3
31-60 days 45 4% 2
61-90 days 11 9% 1
More than 90 30 12% 4
days past due
Specific loss 2,332 30% 700
allowance
Total 4,391 718
In thousands Gross carrying amount Weighted av. Loss
of euro
loss rate% allowance
At December
31, 2022
Current (not 0.5% 8
past due) 1,664
Past due
1-30 days 1.5% 2
161
31-60 days 4% 0
7
61-90 days 9% 3
29
More than 90 12% 1
days past due 12
Specific loss 30% 589
allowance 1,962
Total 604
3,836
Financial liabilities
In thousands of euro 30.6.2023 30.6.2022 31.12.2022
Non-current financial liabilities
Borrowings from financial institutions 2,983 3,822 3,380
Government loans 837 1,871 906
Lease liabilities 744 640 1,058
Total 4,565 6,333 5,344
Current financial liabilities
Borrowings from financial institutions 794 368 794
Government loans 193 193 193
Lease liabilities 515 405 412
Trade payables 785 1,159 869
Total 2,287 2,123 2,268
Total financial liabilities 6,852 8,456 7,612
Fair values - financial liabilities measured at amortized cost
Optomed considers that the carrying amounts of the financial liabilities measured at amortized cost substantially equal to their fair values.
Financial covenants
Optomed's borrowings from financial institutions contain a financial covenant (equity ratio) and Optomed also has to meet certain key operative targets.
Optomed has to comply with the financial covenant terms specified in the loan agreement terms at the financial year-end. Equity ratio is calculated using the agreed formula. The table below summarizes the Group's financial covenant term and compliance during the reporting period.
Covenant term Actual ratio Applicable level
Nordea loan
At June 30. 2023
Equity ratio 50% 60.9% Optomed Group
Cash amount 2 million 5.7 million Optomed Group
At June 30. 2022
Equity ratio 50% 61.5% Optomed Group
Cash amount 2 million 7.1 million Optomed Group
At December 31. 2022
Equity ratio 50% 62.1% Optomed Group
Cash amount 2 million 8.5 million Optomed Group
OP loan equity ratio
At June 30, 2023 35% 65.3% Optomed Group
At June 30, 2022 35% 62.7% Optomed Group
At December 31, 2022 35% 66.1% Optomed Group
Company's Equity ratio is calculated as follows depending on the lender:
Nordea loan equity ratio calculation formula: Adjusted equity/(Balance sheet total+ Leasing liabilities)
OP loan equity ratio calculation formula: Adjusted equity/(Balance sheet total- received advances)
Optomed was in compliance with the covenant as at June 30, 2023.
Related party transactions
In thousands of euro Revenues Trade receivables Other expenses
Jan 1 - Jun 30 2023 0 0 -40
Jan 1 - Jun 30 2022 0 0 -40
Jan 1 - Dec 31 2022 0 0 -80
*Comparison figures for Jan1-Jun 30 2022 numbers have been corrected in revenues and trade receivables category.
Revenue and trade receivables and some of the other expenses relate to the major shareholders of Optomed Ltd considered to be related parties to the parent company. Related parties: due to changes in the board of directors, the owners will no longer be related parties in 2022.
Other expenses consist of consulting fees paid to the Chairman of the Board of Directors.
Events after the review period
After the review period on 3 August 2023 Optomed announced that Juho Himberg will start as Optomed's CEO 1 October 2023. Previously Juho Himberg has served as the CEO of Aidian (former Orion Diagnostica), a leading point-of-care diagnostics company with innovative products and services for improving the well-being and quality of life for people around the world. Prior to Aidian, Juho has held several leadership positions globally in healthcare and medical technology companies such as Orton, Stryker, C.R. Bard Inc. and Gambro. The CEO transition plan was announced 14 June 2023. Optomed's current CEO Seppo Kopsala and the Board of Directors have agreed that Kopsala will leave the CEO position once the new CEO is ready to start.