‘Commercial tipping point’ for listed life sciences company
Life sciences business, OptiBiotix Health, has reported total invoiced Group sales of £1.5m (2019: £744,833), for the 12 months of the financial year ending 31 December 2020, a 103% increase on the previous year.
In its latest update issued today, the York-based company says it is now in a strong position with increasing sales and improving margins complemented by a large fall in costs, demonstrating the scalability of its business model.
The update adds: “The company is now focused on the next stage of its development: growing sales and profitability in its divisions, and commercialising its next generation products (eg microbiome modulators, SweetBiotix, and drug biotherapeutics).
“The Group strategy of investing in scientific and human studies are major points of differentiation from other products and important for attracting partners who sell products into the high value hospital and pharmacy markets and corporate partners.”
OptiBiotix says it has reached “a commercial tipping point”, with its probiotic and functional fibre divisions achieving profitability, increasing margins, an appreciating asset in its investment in SkinBioTherapeutics plc, and a network of partners growing sales and expanding the territories in which they sell products.
The firm’s Functional Fibres division delivered an EBITDA of £66,271, up from an EBITDA loss of £433,249 in 2019, with total sales of £557,539, (2019: £222,235), an increase in sales of 151% over 2019, despite a challenging global trading environment.
OptiBiotix’s wholly owned subsidiary, ProBiotix Health Ltd, delivered an EBITDA of £75,768, up from an EBITDA loss of £474,205 in 2019, with total sales of £818,481 (2019: £397,831), an increase of 106% over 2019.
And the company’s consumer health division contributed £137,024 of sales (2019: £122,220), an increase of 12% on the previous period, but showed a loss of £25,230.
Stephen O’Hara, CEO, said: “This has been another year of progress for OptiBiotix with its probiotic and functional fibre divisions achieving profitability by doubling sales, improving margins, and reducing costs, in a very challenging and uncertain global economic environment.
“The company is also pleased to report a significant appreciation in the value of its investment in SkinBioTherapeutics plc which, if confirmed in the final audited accounts, would mean OptiBiotix reporting a group net profit for the year to the end 31 December 2020 of approximately £5.8m.
“OptiBiotix’s strategy of building multiple product platforms (functional fibres, Probiotics, SkinBiotherapeutics), whilst taking longer than a single technology solution, gives OptiBiotix shareholders multiple shots at a goal, reducing investor risk with the potential of significant upside.”
