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Beskrivning
| Land | Finland |
|---|---|
| Lista | Small Cap Helsinki |
| Sektor | Hälsovård |
| Industri | Medicinteknik |
Optomed Plc Stock Exchange Release 8 August 2024 at 9.00, Helsinki
Optomed Plc: Half-year Report, January - June 2024
April - June 2024
- Revenue decreased by 6.4 percent to EUR 3.5 (3.7) million.
- Devices segment revenue decreased by 15.7 percent to EUR 1.1 (1.3) million.
- Software segment revenue decreased by 1.6 percent to EUR 2.4 (2.5) million.
- Adjusted EBITDA amounted to EUR -0.8 (-0.5) million corresponding to -22.9 (-12.4) percent of revenue.
- EBITDA was negatively affected by the increase of the credit risk accrual regarding a Chinese client from 50% (EUR 767 thousand) to 75% (EUR 1,161 thousand) for an issue dating back to 2021.
- Optomed Aurora with AEYE-DS AI has successfully received FDA clearance.
- Optomed successfully completed directed share issue at the end of June raising gross proceeds approximately EUR 7.9 million.
- Optomed signed a shareholder's agreement with Zhongbao Fund to establish a joint venture in China.
- Outlook unchanged: Optomed expects its full year 2024 revenue to grow compared to 2023.
- Revenue decreased by 5.4 percent to EUR 6.8 (7.2) million.
- Devices segment revenue decreased by 9.2 percent to EUR 2.0 (2.2) million.
- Software segment revenue decreased by 3.8 percent to EUR 4.9 (5.1) million.
- Adjusted EBITDA amounted to EUR -1,450 (-976) thousand corresponding to -21.2 (-13.5) percent of revenue and EBITDA amounted to -1,833 (-976) EUR thousand.
Key figures
EUR, Q2/202 Q2/202 Change, H1/202 H1/202 Change, % 2023
thousand 4 3 % 4 3
Revenue 3,505 3,744 -6.4% 6,832 7,222 -5.4% 15,100
Gross 2,450 2,486 -1.5% 4,663 4,962 -6.0% 10,292
profit *
Gross 69.9% 66.4% 68.3% 68.7% 68.2%
margin % *
EBITDA -1,185 -462 -156.2% -1,833 -976 -87.9% -1,781
EBITDA -33.8% -12.4% -26.8% -13.5% -11.8%
margin *, %
Adjusted -802 -462 -73.4% -1,450 -976 -48.6% -1,470
EBITDA *
Adjusted -22.9% -12.4% -21.2% -13.5% -9.7%
EBITDA
margin
*, %
Operating -1,869 -1,009 -85.2% -3,061 -2,052 -49.2% -3,974
result
(EBIT)
Operating -53.3% -27.0% -44.8% -28.4% -26.3%
margin
(EBIT) *, %
Adjusted -1,486 -1,009 -47.3% -2,677 -2,052 -30.5% -3,663
operating
result
(EBIT) *
Adjusted -42.4% -27.0% -39.2% -28.4% -24.3%
operating
margin
(EBIT
margin)
*, %
Net profit/ -1,793 -1,314 -36.4% -2,883 -2,471 -16.7% -4,441
loss
Earnings -0.10 -0.08 -22.3% -0.16 -0.16 -4.6% -0.27
per share
Cash flow -560 -468 -19.8% -1,071 -913 -17.3% -615
from
operating
activities
Net Debt -9,221 -883 944.2% -9,221 -883 944.2% -3,768
Net debt/ 3.5 0.7 3.5 0.7 2.1
EBITDA
(LTM)
*
Net debt/ 4.7 0.7 4.7 0.7 2.6
Adjusted
EBITDA
(LTM) *
Equity 74.9% 63.6% 74.9% 63.6% 70.0%
ratio *
R&D 336 362 -7.3% 635 645 -1.6% 1,280
expenses
personnel
R&D 165 150 9.7% 309 313 -1.5% 644
expenses
other
costs
Total R&D 501 512 -2.3% 943 958 -1.6% 1,924
expenses
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
Optomed presents Adjusted EBITDA and Adjusted operating result as alternative performance measures to enhance comparability of business performance between reporting periods. In Q2 2024, items affecting comparability amounted to EUR 383 thousand and related to increased credit risk with respect to an overdue trade receivable from a customer in China.
CEO Review
As we review the second quarter of 2024, it is crucial to reflect on our achievements, challenges, and the strategic decisions we are implementing to drive future growth.
Our revenue for Q2 2024 was EUR 3.5 million, representing a decrease of 6.4% compared to the same period last year. This decline is attributable to reductions in both our Devices and Software segments, In Devices, revenue decreased by 15.7% to EUR 1.1 million from EUR 1.3 million. In Software, revenue decreased by 1.6% to EUR 2.4 million from EUR 2.5 million.
The adjusted EBITDA stood at EUR -0.8 million, corresponding to -22.9% of revenue.
Despite the relatively soft sales in both business segments, we have made substantial progress in the most important strategic areas:
1. FDA Clearance for Optomed Aurora with AEYE-DS AI: U.S. Food and Drug Administration (FDA) clearance was successfully received for Optomed Aurora with AEYE-DS AI, a milestone that validates our innovative approach and opens new market opportunities in the United States.
2. Directed Share Issue: We successfully completed a directed share issue, raising gross proceeds approximately EUR 7.9 million. This capital infusion strengthens our financial position and supports our strategic initiatives.
3. Joint Venture with Zhongbao Fund: We signed a shareholder's agreement with Zhongbao Fund to establish a joint venture in China. This partnership aims to enhance our market presence and leverage local expertise for better penetration in the Chinese market.
4. Cooperation Agreement with Toku Eyes: We signed a cooperation agreement with Toku Eyes, whose algorithms have received FDA breakthrough designation for detecting kidney and cardiovascular risks through eye examinations. This collaboration will enable us to expand the range of diseases that can be assessed using Optomed's cameras.
We remain optimistic about our growth prospects. Our outlook for the full year 2024 remains unchanged, with an expectation of revenue growth compared to 2023. We are committed to executing our strategic plan, improving operational efficiencies, and expanding our market footprint. In accordance with our strategy, we will continue to invest in product development, clinical trials, and finally bringing new products to markets.
In conclusion, while the second quarter presented some financial challenges, we have made significant strides in key strategic areas that position us well for the future. Our focus remains on delivering long-term value to our shareholders through innovation, strategic partnerships, and market expansion.
Thank you for your continued support and confidence in Optomed. We look forward to updating you on our progress in the coming quarters.
Warm regards,
Juho Himberg
CEO
Outlook 2024
Optomed expects its full year 2024 revenue to grow compared to 2023.
Telephone conference
A telephone conference for analysts, investors and media will be arranged on 8 August 2024 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 861 267 118#
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 2024
In April - June 2024, Group revenue decreased by 6.4 percent to EUR 3,505 (3,744) thousand. In spite of strong sales of the US and China channels, Devices segment had a slow quarter due to softness of the global distributor sales and OEM channel. The revenue decreased 15.7 percent to EUR 1 073 (1,273) thousand. The Software segment revenue was fairly stable and decreased by 1.6 percent to EUR 2,432 (2,471) thousand.
In April - June 2024, the gross margin increased to 69.9 from 66.4 percent of last year.
Adjusted EBITDA decreased and it was EUR -802 (-462) thousand.
EBIT decreased and it was EUR -1,869 (-1,009) thousand.
In April - June 2024, net financial items amounted to EUR 53 (-325) thousand and consisted mainly of interest income and the translation effect of CNY and USD to EUR.
In late April, Optomed Aurora with AEYE-DS AI received FDA clearance which was the requirement to start sales and marketing activities of the Optomed Aurora-AEYE AI fundus camera service in the US. The device is the first handheld device + a fully autonomous AI to receive FDA clearance for diagnosis of referable diabetic retinopathy. The clinical results were: 92% - 93% sensitivity, 89% - 94% specificity, and 99+% imageability. Screening for diabetic retinopathy with AI is reimbursable in the United States using the newly approved, first ever AI CPT code 92229 for autonomous screening. Additionally, it serves as a major HEDIS measure for most health plans.
In June, Optomed signed a shareholder's agreement with regards to a joint venture in China with Zhongbao, a Chinese private equity firm based in Shenzhen, China. The firm focuses on growth opportunities, and it invests in a diversified range of industries. Optomed will own 19.9% of the joint venture and Zhongbao 80.1%. The business model for this venture will be a recurring revenue model, ensuring sustainability and long-term success.
January - June 2024
In January-June 2024, Group revenue decreased by 5.4 percent to EUR 6,832 (7,222) thousand. Devices segment's revenue decreased by 9.2 percent while the Software segment's revenue decreased by 3.8 percent.
The gross margin decreased to 68.2 percent from 68.7 percent last year.
Adjusted EBITDA amounted to EUR -1,450 (-976) thousand and EBIT was EUR -3,061 (-2,052) thousand.
Net financial items amounted to EUR 147 (-459) thousand and consisted mainly of interest income and the translation effect of Chinese RMB to EUR.
Cash flow and financial position
April - June 2024
In April - June 2024, the cash flow from operating activities amounted to EUR -560 (-468) thousand. Net cash used in investing activities was EUR -534 (-668) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR 7,506 (-348) thousand. Optomed completed a directed share issue consisting of 1,500,000 shares and collected gross proceeds of approximately EUR 7.9 million in June 26 2024.
Consolidated cash and cash equivalents at the end of the period amounted to EUR 12,106 (5,691) thousand. Net debt was EUR -9,221 (-883) thousand at the end of the period.
Net working capital was EUR 1,306 (3,537) thousand at the end of the period.
Optomed has large trade receivables from a Chinese customer. The customer has missed several payments since H2-2023 and, consequently, the specific loss allowance weighted average loss rate was increased to 75% in Q2-2024. The payment negotiations continue with the said customer. The total amount of the receivable in the balance sheet is now EUR 387 thousand.
January - June 2024
In January-June 2024, the cash flow from operating activities amounted to EUR -1,071 (-913) thousand.
Net cash used in investing activities was EUR -1,068 (-1,213) thousand and relates to capitalized development expenses.
Net cash from financing activities amounted to EUR 7,139 (-696) 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 Q2/2024 Q2/202 Change, % H1/2024 H1/2023 Change, % 2023
3
Revenue 1,073 1,273 -15.7% 1,963 2,161 -9.2% 5,009
Gross profit * 695 674 3.2% 1,211 1,233 -1.7% 2,947
Gross margin % 64.8% 53.0% 61.7% 57.0% 58.8%
*
EBITDA -686 -217 -215.7% -1,047 -643 -62.8% -1,264
EBITDA margin -64.0% -17.1% -53.3% -29.8% -25.2%
*, %
Operating -1,164 -578 -101.5% -1,869 -1,356 -37.8% -2,707
result (EBIT)
Operating -108.5% -45.4% -95.2% -62.8% -54.0%
margin (EBIT)
*, %
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
April - June 2024
In April - June 2024, the Devices segment revenue decreased by 15.7 percent to EUR 1,073 (1,273) thousand. The revenue declined due to slow quarter of the global distributor sales and OEM channel. Revenue of the US and China channels increased.
The gross margin was 64.8 (53.0) percent. The increase was due to a single high margin delivery.
EBITDA was EUR -686 (-217) thousand or -64.0 (-17.1) percent of revenue. The decline was mainly due to the previously mentioned EUR 383 increase of the credit risk accrual with regards to China.
January-June 2024
In January-June 2024, the Devices segment revenue decreased by 9.2 percent to EUR 1,963 (2,161) thousand. The decrease was driven by weaker than expected sales of the global distributor sales and OEM channels.
The gross margin increased to 61.7 percent from 57.0 percent.
EBITDA was EUR -1,047 (-643) thousand or -53.3 (-29.8) 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 Q2/2023 Change, % H1/2024 H1/2023 Change, % 2023
4
Revenue 2,432 2,471 -1.6% 4,869 5,061 -3.8% 10,091
Gross profit * 1,746 1,812 -3.7% 3,442 3,729 -7.7% 7,346
Gross margin % 71.8% 73.3% 70.7% 73.7% 72.8%
*
EBITDA 456 578 -21.1% 982 1,368 -28.2% 2,629
EBITDA margin 18.7% 23.4% 20.2% 27.0% 26.1%
*, %
Operating 252 393 -35.9% 581 1,009 -42.4% 1,889
result (EBIT)
Operating 10.4% 15.9% 11.9% 19.9% 18.7%
margin (EBIT)
*, %
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
April - June 2024
In April - June 2024, the Software segment was stable and decreased by 1.6 percent to EUR 2,432 (2,471) thousand.
The gross margin decreased and was 71.8 (73.3) percent. EBITDA was EUR 456 (578) thousand or 18.7 (23.4) percent of revenue.
During the quarter, Software segment won a contract to provide non-healthcare development services to a Finnish governmental agency. Optomed has been providing the services since 2003 but the contract was subject to a procurement process.
January - June 2024
In January-June 2024, the Software segment revenue decreased by 3.8 percent to EUR 4,869 (5,061) thousand.
Gross margin increased and it was 70.7 (73.7) percent. EBITDA was EUR 982 (1,368) thousand or 20.2 (27.0) percent of revenue.
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 2024
Group-wide operating expenses amounted to EUR 963 (823) thousand.
January - June 2024
Group-wide operating expenses amounted to EUR 1,777 (1,700) thousand.
Personnel
Number of personnel at the end of the reporting period.
6/2024 6/2023 12/2023
Devices 46 47 47
Software 46 46 47
Group common 18 22 20
Total 110 115 114
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 2023 is available on the company website www.optomed.com/investors/.
Annual General Meeting
The Annual General Meeting held on 10 May 2024 adopted the financial statements for the financial period ended on 31 December 2023, discharged the members of the Board of Directors and the CEO from liability for the financial period ended on 31 December 2023 and adopted the Company's Remuneration Report and Remuneration Policy for Governing Bodies.
The Annual General Meeting resolved in accordance with the proposal of the Board of Directors that no dividend will be paid for the year 2023.
The number of members of the Board of Directors was confirmed as six. Catherine Calarco, Ty Lee, Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam were re-elected as 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 part of the Board remuneration paid in Optomed shares will, if possible, be conveyed from the treasury shares of the Company in accordance with the authorization of the Board of Directors to resolve on the issuance of shares and special rights entitling to shares. 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. The auditor's remuneration will be paid in accordance with an invoice approved by the Company.
The Annual General Meeting resolved in accordance with the Board's proposal to amend the terms and conditions of the Stock Option Plans 2017B, 2018C, 2019A and 2019C so that the subscription periods for shares pursuant to all option rights granted under each Stock Option Plan will end on 31 December 2027.
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 1,813,039 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 1,813,039. 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 this Annual General Meeting.
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
Ty Lee
Anna Tenstam
Remuneration Committee:
Seppo Mäkinen (Chairman)
Ty Lee
Catherine Calarco
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 18,130,397 shares and the Company held 353,973 shares in the treasury which approximately corresponds to 1.95 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/.
Directed share issue
Optomed completed a directed share issue consisting of 1,500,000 shares and collected gross proceeds of approximately EUR 7.9 million in June 2024. According to the assessment of the Company, the Share Issue supports the Company's target best compared to other equity financing options.
The Board has considered other financing options, including various capital market financing options. According to the assessment of the Board, the other alternatives involved significant costs, timetable requirements as well as uncertainties related to the implementation which are not in the interest of the Company and its shareholders when taking into account the Company's capital needs and the need for rapidly developing the Company's business to utilise its market position. Therefore, the Board of the Company has considered that there is a weighty financial reason for the Company to deviate from the pre-emptive subscription rights, and according to the Board of the Company, the Share Issue is in the interest of the Company and its shareholders.
The subscription price was EUR 5.25 per Share. The subscription price represented a discount of approximately 13.8 per cent compared to the closing price of the Company's share on 26 June 2024. The subscription price has been determined through negotiations corresponding to a bookbuilding, involving a limited number of institutional and qualified investors. The investors were identified on the basis of their investment potential, expertise in the Company and its industry, and knowledge of the Finnish market. The purpose of the procedure has been to ensure the realisation of the financing arrangement and the subscription price being market based. The subscription price was credited in full to the Company's reserve for invested unrestricted equity.
New shares subscribed for in Optomed Plc's directed share issue have been registered into the Finnish Trade Register, and the shares were admitted to trading on the official list of Nasdaq Helsinki Ltd on 1 July 2024.
Risks and uncertainties
The key risks and uncertainties are described in the company's Annual Report 2023 which was published on 29 February 2024. The complete report is available at https://www.optomed.com/investors/. The risk position of Optomed has not changed since then, except for that the risks titled "AURORA AEYE FDA CLEARANCE PROCESS" and "PUBLIC PROCUREMENT" are no longer applicable.
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2024- 7 November 2024 Interim Report for 1 January - 30 September 2024
For more information, contact
Sakari Knuutti, CFO
E-mail: sakari.knuutti@optomed.com
Juho Himberg, CEO
E-mail: juho.himberg@optomed.com
About Optomed
Optomed is a Finnish medical technology company and one of the leading providers of handheld fundus cameras. Optomed combines handheld fundus cameras with software and artificial intelligence with the aim to transform the diagnostic process of various 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 / EBITDA Net Debt / EBITDA (for the last twelve months, LTM)
(LTM), times
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
Reconciliation of Alternative Performance Measures
In thousand of Euro Q2/2024 Q2/2023 H1/2024 H1/2023 2023
Revenue 3,505 3,744 6,832 7,222 15,100
Other operating income 9 34 10 34 49
Material and services -1,064 -1,292 -2,179 -2,294 -4,857
Gross profit 2,450 2,486 4,663 4,962 10,292
Operating result (EBIT) -1,869 -1,009 -3,061 -2,052 -3,974
Items affecting
comparability
Specific credit risk 383 0 383 0 311
percent change
Adjusted EBIT -1,486 -1,009 -2,677 -2,052 -3,663
Depreciation, 684 547 1,228 1,076 2,193
amortization and
impairment losses
Adjusted EBITDA -802 -462 -1,450 -976 -1,470
Consolidated income statement
In thousands Q2/2024 Q2/2023 H1/2024 H1/2023 2023
of euro
Revenue 3,505 3,744 6,832 7,222 15,100
Other 9 34 10 34 49
operating
income
Materials and -1,064 -1,292 -2,179 -2,294 -4,857
services
Employee -2,190 -2,190 -4,316 -4,382 -8,699
benefit
expenses
Depreciation, -684 -547 -1,228 -1,076 -2,193
amortization
and
Impairment
losses
Other -1,445 -758 -2,179 -1,556 -3,374
operating
expenses
Operating -1,869 -1,009 -3,061 -2,052 -3,974
result
Finance 148 38 359 106 479
income
Finance -95 -363 -213 -565 -1,024
expenses
Net finance 53 -325 147 -459 -545
expenses
Profit (loss) -1,816 -1,334 -2,914 -2,511 -4,519
before
income taxes
Income tax 23 20 31 40 79
expense
Loss for the -1,793 -1,314 -2,883 -2,471 -4,441
period
Loss for the
period
attributable
to
Owners of the -1,793 -1,314 -2,883 -2,471 -4,441
parent
company
Weighted 17,510,243 15,691,727 17,510,243 15,691,727 16,706,508
average
number
of shares
Basic loss -0.10 -0.08 -0.16 -0.16 -0.27
per share
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro Q2/2024 Q2/2023 H1/2024 H1/2023 2023
Loss for the period -1,793 -1,314 -2,883 -2,471 -4,441
Other comprehensive income
Foreign currency translation -61 166 -141 244 283
difference
Other comprehensive income, net of -61 166 -141 244 283
tax
Total comprehensive loss -1,854 -1,148 -3,024 -2,227 -4,157
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands of euro June 30, 2024 June 30, 2023 December 31, 2023
ASSETS
Non-current assets
Goodwill 4,256 4,256 4,256
Development costs 8,126 7,200 7,731
Customer relationships 832 1,053 942
Technology 382 483 433
Other intangible assets 373 381 384
Total intangible assets 13,969 13,374 13,746
Tangible assets 630 769 710
Right-of-use assets 1,187 1,231 1,472
Deferred tax assets 15 17 23
Total non-current assets 15,800 15,391 15,951
Current assets
Inventories 2,654 2,954 2,820
Trade and other receivables 2,594 4,590 3,190
Cash and cash equivalents 12,106 5,691 7,118
Total current assets 17,354 13,235 13,128
Total assets 33,154 28,627 29,079
In thousands of euro June 30, 2024 June 30, 2023 December 31, 2023
EQUITY
Share capital 80 80 80
Share premium 504 504 504
Reserve for invested 58,288 46,912 50,936
non-restricted equity
Translation 194 296 334
differences
Retained earnings -31,365 -27,117 -27,052
Profit (loss) for the -2,883 -2,471 -4,441
financial year
Total equity 24,818 18,203 20,361
LIABILITIES
Non-current
liabilities
Borrowings from 1,187 2,983 1,651
financial
institutions
Government loans 645 837 713
Lease liabilities 737 744 991
Deferred tax 272 349 310
liabilities
Total Non-current 2,841 4,913 3,665
liabilities
Current liabilities
Borrowings from 860 794 794
financial
institutions
Government loans 193 193 193
Lease liabilities 500 515 516
Trade and other 3,943 4,008 3,550
payables
Total current 5,496 5,510 5,052
liabilities
Total liabilities 8,337 10,423 8,718
Total equity and 33,154 28,627 29,079
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 |50,936 |334 |-31,493 | 20,361|
|January 1, | | | | | | |
|2024 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Loss for the | | | | |-2,883 |-2,883 |
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation | | | |-141 | |-141 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | | |-141 |-2,883 |-3,024 |
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue *| | | 7,353 | | |7,353 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share based | | | | | |0 |
|payments | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options| | | | |128 |128 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | |7,353 | |128 |7,480 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |58,288 |194 |-34,248 | 24,818|
|June 30, | | | | | | |
|2024 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
* Shares registered to trade registry 1.7.2024.
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 |46,896 |51 |-27,189 |20,342 |
|January 1, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Loss for the | | | | |-4,441 |-4,441 |
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation | | | |283 | |283 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | | |283 |-4,441 |-4,157 |
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue | | |3,973 | | |3,973 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share based | | |48 | | |48 |
|payments | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options| | |19 | |137 |156 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | |4,039 | |137 |4,176 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |50,936 |334 |-31,493 | 20,361|
|December | | | | | | |
|31, 2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
Consolidated cash flow statement
In thousands of Q2/2024 Q2/202 H1/2024 H1/2023 2023
euro 3
Cash flows from
operating
activities
Loss for the -1,793 -1,314 -2,883 -2,471 -4,441
financial year
Adjustments:
Depreciation, 684 547 1,228 1,076 2,193
amortization and
impairment
losses
Finance income and -30 333 -77 470 468
finance expenses
Other adjustments 451 -44 450 -55 289
Cash flows before -688 -479 -1,283 -980 -1,491
change in net
working capital
Change in net
working capital:
Change in trade and 288 -252 254 -21 1,094
other receivables
(increase (-) /
decrease (+))
Change in 129 82 183 -14 118
inventories
(increase (-) /
decrease (+))
Change in trade and -252 223 -141 139 -75
other payables
(increase (+) /
decrease (-))
Cash flows before -523 -426 -987 -875 -354
finance items
Interest paid -27 -34 -56 -52 -169
Other finance -11 -7 -42 13 -93
expenses paid
Interest received 0 0 14 0 0
Net cash from -560 -468 -1,071 -913 -615
operating
activities (A)
Cash flows from
investing
activities
Capitalization of -475 -606 -984 -1,124 -2,199
development
expenses
Acquisition of -59 -62 -84 -89 -213
tangible assets
Net cash used in -534 -668 -1,068 -1,213 -2,412
investing
activities
(B)
Cash flows from
financing
activities
Proceeds from share 7,875 12 7,875 16 4,310
subscriptions
Share issue 0 0 0 0 -318
transaction costs
Repayment of loans -235 -235 -465 -465 -1,921
and borrowings
Repayment of lease -134 -125 -270 -247 -462
liabilities
Net cash from 7,506 -348 7,139 -696 1,609
financing
activities (C)
Net cash from (used 6,411 -1,483 5,000 -2,822 -1,419
in) operating,
investing and
financing
activities
(A+B+C)
Cash and cash 5,706 7,179 7,118 8,524 8,524
equivalents at
beginning
of period
Effect of movements -10 -5 -12 -11 13
in exchange rate
on cash held
Cash and cash 12,106 5,691 12,106 5,691 7,118
equivalents at end
of
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 Half-year Report also takes into account the amendments to IFRS standards that have become effective by January 1, 2024.
This Half-year financial statement is 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 2023. These Half-year 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 recognized in the financial statements, relate to the following areas:
- Determining trade receivables credit risk
- capitalization of development costs: determination of development expenditure eligible for capitalization
- impairment testing of development expenditures
Reportable segments
Q2/2024
In thousands of euro Devices Software Group Total
Admin
External revenue 1,073 2,432 0 3,505
Net operating expenses -378 -686 9 -1,055
Margin 695 1,746 9 2,450
Depreciation and amortization -478 -204 -3 -684
Other expenses -1,382 -1,290 -963 -3,635
Operating result -1,164 252 -957 -1,869
Finance items 0 0 53 53
Loss before tax expense -1,164 252 -904 -1,816
Q2/2023
In thousands of euro Devices Software Group Admin Total
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
H1/2024
In thousands of euro Devices Software Group Total
Admin
External revenue 1,963 4,869 0 6,832
Net operating expenses -752 -1,427 9 -2,169
Margin 1,211 3,442 9 4,663
Depreciation and amortization -822 -401 -5 -1,228
Other expenses -2,258 -2,461 -1,777 -6,496
Operating result -1,869 581 -1,773 -3,061
Finance items 0 0 147 147
Loss before tax expense -1,869 581 -1,626 -2,914
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
2023
In thousands of euro Devices Software Group Total
Admin
External revenue 5,009 10,091 0 15,100
Net operating expenses -2,062 -2,745 0 -4,807
Margin 2,947 7,346 0 10,292
Depreciation and amortization -1,444 -740 -9 -2,193
Other expenses -4,210 -4,717 -3,146 -12,074
Operating result -2,707 1,889 -3,155 -3,974
Finance items 0 0 -545 -545
Loss before tax expense -2,707 1,889 -3,701 -4,519
Revenue
In thousands of euro Q2/2024 Q2/2023 H1/2024 H1/2023 2023
Finland 2,335 2,391 4,674 4,911 9,643
Rest of the Europe 260 234 612 470 1,870
Rest of the World 910 1,119 1,546 1,841 3,586
Total 3,505 3,744 6,832 7,222 15,100
Other operating expenses
Other operating expenses Q2/2024 Q2/2023 H1/2024 H1/2023 2023
Sales and marketing -213 -192 -308 -339 -635
Research and development -52 -43 -131 -132 -230
General and administration -1180 -523 -1,741 -1,085 -2,509
Total operating expenses -1,445 -758 -2,179 -1,556 -3,374
Other operating expenses also comprise changes in expected credit losses and realized credit losses.
Tangible assets
Machinery Machinery and equipment Machinery and
and
equipment equipment
In thousands of euro 30.6.2024 30.6.2023 31.12.2023
Cost
Balance at January 1 3,724 3,512 3,512
Additions 89 88 212
Balance at End of 3,813 3,600 3,724
Period
Accumulated
depreciation and
impairment losses
Balance at January 1 -3,015 -2,660 -2,660
Depreciation -169 -170 -355
Balance at end of -3,184 -2,830 -3,015
period
Carrying amount at 710 852 852
January 1
Carrying amount at June 630 769 710
30/ December 31
Leases
Leased tangible assets
In thousands of euro 30.6.2024 30.6.2023 2023
Changes to right-of-use -31 280 532
assets
Depreciation change for -255 -253 -508
right-of-use assets
Carrying amount at the 1,187 1,231 1,472
end of the reporting
period
Leased tangible assets
comprise business
premises and cars and are
presented as a separate
line item Right-of-use
assets in the
consolidated balance
sheet.
Lease liabilities
In thousands of euro 30.6.2024 30.6.2023 2023
Current 500 515 516
Non-current 737 744 991
Total 1,237 1,260 1,507
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
June 30, 2024
In thousands Goodwill Development Customer Technology Other Total
of euro costs relationships intangible
assets
Cost
Balance at 4,256 16,067 2,222 1,023 1,147 24,715
January 1
Additions 0 1,002 0 0 25 1,027
Balance at 4,256 17,069 2,222 1,023 1,172 25,742
June 30
Accumulated
amortisation
and
impairment
losses
Balance at 0 -8,336 -1,280 -590 -763 -10,969
January 1
Amortization 0 -494 -110 -51 -35 -692
Impairment 0 -112 0 0 0 -112
losses
Balance at 0 -8,943 -1,390 -641 -798 -11,773
June 30
Carrying 4,256 7,731 942 433 384 13,746
amount at
January 1
Carrying 4,256 8,126 832 382 373 13,969
amount at
June
30
Impairment losses consist of terminated project cost.
June 30, 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
December 31, 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 2,089 0 0 93 2,182
Balance at 4,256 16,067 2,222 1,023 1,147 24,715
December 31
Accumulated -
amortisation
and
impairment
losses
Balance at 0 -7,416 -1,057 -489 -676 -9,638
January 1
Amortization 0 -920 -223 -101 -66 -1,311
Impairment 0 0 0 0 -21 -21
losses
Balance at 0 -8,336 -1,280 -590 -763 -10,969
December 31
-
Carrying 4,256 6,562 1,164 534 379 12,895
amount at
January 1
Carrying 4,256 7,731 942 433 384 13,746
amount at
December 31
Financial assets
In thousands of euro 30.6.2024 30.6.2023 31.12.2023
Trade receivables
Other trade receivables 1,980 3,442 2,583
Total trade receivables 1,980 3,442 2,583
Cash and cash equivalents 12,106 5,691 7,118
Total 14,086 9,133 9,701
Due to overdue trade receivables, financial assets are subject to an increased risk of credit loss. Optomed successfully completed directed share issue at the end of June raising approximately EUR 7.9 million, which increased Cash and cash equivalents significantly.
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. Specific loss allowance weighted average loss rate% increased from comparison period 30% first to 50% and then to 75%.
In thousands Gross carrying amount Weighted Loss
of euro av.
allowance
loss
rate%
At June 30,
2024
Current (not 1,443 0.50% 7
past due)
Past due
1-30 days 113 1.50% 2
31-60 days 4% 1
16
61-90 days 9% 0
1
More than 90 12% 4
days past due 35
Specific loss 1,549 75% 1,161
allowance
Total 3,156 1,175
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 Loss
of euro av.
allowance
loss
rate%
At December
31, 2023
Current (not 1,516 0.50% 8
past due)
Past due
1-30 days 51 1.50% 1
31-60 days 4% 0
6
61-90 days 10 9% 1
More than 90 277 12% 33
days past due
Specific loss 1,534 50% 767
allowance
Total 3,392 809
Financial liabilities
In thousands of June 30, 2024 June 30, 2023 December 31, 2023
euro
Non-current
financial
liabilities
Borrowings from 1,187 2,983 1,651
financial
institutions
Government loans 645 837 713
Lease liabilities 737 744 991
Total 2,569 4,565 3,355
Company has paid one loan in October 2023.
In thousands of June 30, 2024 June 30, 2023 December 31, 2023
euro
Current financial
liabilities
Borrowings from 860 794 794
financial
institutions
Government loans 193 193 193
Lease liabilities 500 515 516
Trade payables 576 785 782
Total 2,129 2,287 2,285
Total financial 4,698 6,852 5,640
liabilities
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).
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
OP loan equity ratio
At June 30, 2024 35% 86.8% Optomed Group
At June 30, 2023 35% 77.1% Optomed Group
At December 31, 2023 35% 83.1% Optomed Group
Comparison period number has been adjusted and is calculated using below mentioned formula.
Company's Equity ratio is calculated as follows.
OP loan equity ratio calculation formula: Adjusted equity/(Balance sheet total- received advances-goodwill)
Optomed was in compliance with the covenant as at June 30, 2024.
Related party transactions
In thousands of euro Revenues Trade receivables Other expenses
Jan 1 - Jun 30 2024 0 0 -39
Jan 1 - Jun 30 2023 0 0 -40
Jan 1 - Dec 31 2023 0 0 -78
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.
Other expenses consist of consulting fees paid to the Chairman of the Board of Directors.
Events after the review period
New shares subscribed for in directed share issue have been registered into the Finnish Trade Register on July 1, 2024.