Optomed Plc Stock Exchange Release 5 August 2021 at 9.30, Helsinki
Optomed Plc: Half-year financial report, January – June 2021
April – June 2021
· Revenue increased by 54.5 percent to EUR 4,012 (2,597) thousand.
· Devices segment revenue increased by 123.5 percent to EUR 1,896 (848)
thousand.
· Software segment revenue increased by 21.0 percent to EUR 2,116 (1,749)
thousand
· Adjusted EBITDA amounted to EUR 177 (-325) thousand corresponding to 4.4 (
-12.5) percent of revenue.
· The very strong revenue growth compared to the weak COVID-19 affected
comparison period was driven by solid performance in China and increased demand
for handheld cameras and software solutions also in other key markets
January – June 2021
· Revenue increased by 41.3 percent to EUR 7,956 (5,631) thousand.
· Adjusted EBITDA amounted to EUR -138 (-900) thousand corresponding to -1.7 (
-16.0) percent of revenue
· Collaboration with a new strategic distribution partner, China National
Pharmaceutical Group Co., Ltd (Sinopharm) started during the first quarter
Key figures
EUR, thousand Q2/202 Q2/202 Change, H1/202 H1/202 Change, 2020
1 0 % 1 0 %
Revenue 4,012 2,597 54.5% 7,956 5,631 41.3% 13,011
Gross profit 3,324 1,907 74.3% 5,901 3,884 51.9% 8,955
*
Gross margin 82.9% 73.4% 74.2% 69.0% 68.8%
% *
EBITDA 177 -325 154.5% -138 -900 84.7% -733
EBITDA margin 4.4% -12.5% -1.7% -16.0% -5.6%
*, %
Adjusted 177 -325 154.5% -138 -900 84.7% -733
EBITDA *
Adjusted 4.4% -12.5% -1.7% -16.0% -5.6%
EBITDA margin
*, %
Operating -859 -973 11.7% -1,710 -2,034 15.9% -2,906
result(EBIT)
Operating -21.4% -37.5% -21.5% -36.1% -22.3%
margit
(EBIT) *, %
Adjusted -859 -973 11.7% -1,710 -2,034 15.9% -2,906
operating
result(EBIT)
*
Adjusted -21.4% -37.5% -21.5% -36.1% -22.3%
operating
margin (EBIT
margin)
*, %
Net profit/ -864 -976 11.5% -1,480 -2,226 33.5% -3,177
loss
Earnings per -0.06 -0.08 22.5% -0.11 -0.19 41.7% -0.24
share
Cash flow -1,403 107 -1,408.0% -1,659 -2,814 41.0% -2,801
from
operating
activities
Net Debt -2,042 -5,165 -60.5% -2,042 -5,165 -60.5% -4,090
Net debt/ -68.7 4.1 -68.7 4.1 5.6
Adjusted
EBITDA (LTM)
Equity ratio 64.5% 66.0% 64.5% 66.0% 64.6%
*
R&D expenses 490 338 44.9% 968 763 27.0% 1,406
personnel
R&D expenses 161 31 422.1% 310 121 157.0% 253
other
costs
Total R&D 651 369 76.4% 1,279 884 44.7% 1,659
expenses
*)
Alternative
performance
measures,
see section
Alternative
Performance
Measures
for
definitions
and
calculations.
CEO comments
Very strong growth continued
Optomed's revenue continued to grow very strongly during the second quarter. The
Devices segment revenue increased by 124% especially driven by favourable
performance in China. Also, other key markets of the Devices segment grew well.
The comparison period was weak due to the Covid-19 pandemic.The Software segment
revenue also grew very strongly by 21% during the quarter. Overall, the Group's
revenue increased by 55%. The megatrends favorable for the company, such as the
increase in the total number of eye screenings and their increased prevalence
also in primary health care, as well as the increase in telemedicine services,
have remained unchanged.
Revenue increased during the review period in almost all our sales channels,
although the Covid-19 pandemic continues to negatively impact our traditional
distribution channels in several countries. During the quarter, we saw
significant growth in both Optomed's own-branded products as well as our OEM
orders. Our international eye screening solution projects also progressed
favorably in both Asia and the Middle East.
During the first quarter of the year, we started collaborating with a new
strategic distribution partner in China. This new partner, China National
Pharmaceutical Group Co., Ltd. (Sinopharm), is one of the world’s leading
healthcare companies. In addition to Optomed’s cameras, Sinopharm is also a
reseller for Optomed's long-term strategic customer, Phoebus Medical Technology
Co., Ltd. (Phoebus) for their telemedicine services in China. Optomed sells
cameras to Phoebus to be used as part of a complete solution that includes
Optomed handheld cameras and Phoebus’ telemedicine software and services.
Sinopharm acts as a distribution channel for this complete solution. The
agreement is an exclusive, China-wide distribution agreement. Through this
cooperation, our goal is to significantly increase the coverage of our
distribution in China and thereby grow our business. We delivered a significant
number of new devices to these partners during the quarter, and the current
focus is on training their sales and marketing staff. Initiating such a
collaboration with a large healthcare company is often time consuming, and we
expect this start-up phase to take approximately 12 to 18 months and incur
reasonable non-recurring costs for Optomed throughout this period. The long-term
potential and business growth can realistically be assessed at the end of the
start-up phase. Due to the same reason, it is still hard to estimate what our
second half of 2021 will look like.
In the United States, we have continued to sell our products through our own
direct sales organization and focused on establishing a distribution network as
planned. The demand for our products remained strong and revenue continued to
grow in line with our expectations.
During the quarter we launched a disposable eye cup for our handheld cameras, as
well as two traditional desktop cameras to complement our screening solutions
portfolio. All of these products are expected to increase Optomed’s long-term
growth and improve profitability, but we are not expecting these launches to
have a significant impact yet in 2021.
Optomed has continued the significant investments we started during the first
quarter in expanding our sales channels, focusing on clinical research, and
developing and launching new products. These investments are reflected in higher
expenses in the current and coming quarters. Our most significant strategic
development projects are the ongoing clinical trials to gain FDA clearance for
artificial intelligence solutions for diabetic retinopathy screening in the US
market, the validation and commercialization of other new artificial
intelligence algorithms in Europe and other key markets, and development and
subsequent market launches of new eye diagnostics devices in the coming years.
We are pleased with the progress we have made during the second quarter.
Seppo Kopsala
CEO
Outlook 2021
Optomed expects its full year 2021 revenue to grow strongly compared to 2020.
Telephone conference
A telephone conference for analysts, investors and media will be arranged on 5
August 2021 at 11.00 EEST, (10:00 CEST). The event will be held in English. The
presentation material will be available at www.optomed.com/investors 10.00 EEST
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 is 703 421 921#.
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 2021
In April-June 2021, Group revenue increased by 54.5 percent to EUR 4,012 (2,957)
thousand. The main driver for revenue growth against the weak Covid-19 affected
comparison period of 2020 was the Devices segment’s solid performance in China,
but also other markets of the Devices segment showed good progress. The Devices
segment’s revenue increased by 123.5 percent. The Software segment’s strong
performance continued, and revenue increased by 21.0 percent mainly driven by
stable recurring business from existing customers. Global screening solution
projects continued well in Asia and the Middle-East. The clinical trials with
the aim to the FDA approval for Aurora AEYE, a handheld camera with autonomous
AI for retinal screening, are progressing as planned. During the quarter, we
also launched two third-party desktop fundus cameras as a part of our screening
solutions portfolio. Customers often demand both products, the more traditional
desktop cameras and handheld cameras. As Optomed does not have its own desktop
cameras, the company has complemented its product portfolio by acquiring desktop
cameras with a private label agreement. The cameras are competitive and of high
quality, and they integrate with Optomed's software and artificial intelligence
solutions. Offering also these complementary products is expected to increase
the demand and number of users of Optomed's complete screening solutions, but
they are not expected to have a significant impact on revenue or earnings in the
short term.
The gross margin increased to 82.9 from 73.4 percent of last year. The gross
margin was positively affect by a waived loan of EUR 538 thousand from Business
Finland related to a terminated product development project for the Devices
segment. The waived loan has been booked as grants. The Company received grants
and other operating income EUR 624 (87) thousand, which increased the gross
margin of both periods. The gross margin for the second quarter of 2021 adjusted
for grants and other operating income would have been 67.3 percent compared to
70.0 percent in 2020.
EBITDA amounted to EUR 177 (-325) thousand. The main reason for the improved
EBITDA is the EUR 538 thousand waived loan. The higher gross profit in the
second quarter 2021 compared to 2020 was offset by higher operating expenses as
2020 was strongly affected by the COVID-19 pandemic and the related cost savings
actions taken by the Company. EBIT was EUR -859 (-973) thousand. EBIT was
affected by the amortization of the terminated product development program
amounting to EUR 482 thousand.
Net financial items amounted to EUR -25 (-22) thousand and consisted mainly of
interest payments to financial institutions and the translation effect of
Chinese RMB and USD to EUR.
January – June 2021
In January-June 2021, Group revenue increased by 41.3 percent to EUR 7,956
(5,631) thousand, driven mainly by the same reasons as for the second quarter.
The Devices segment’s revenue increased by 83.4 percent and the Software
segment’s revenue increased by 21.1 percent.
The gross margin increased to 74.2 percent from 69.0 percent last year. The
Company’s other operating income includes governmental grants of EUR 624 (87)
thousand in the first half of 2021 and 2020, which increased the gross margin of
both periods. The gross margin for the first half of 2021 adjusted for the total
amount of the grants and other operating income would have been 65.3 percent
compared to 67.4 percent in 2020.
EBITDA amounted to EUR -138 (-900) thousandand EBIT was EUR -1,710 (-2,034)
thousand.
Net financial items amounted to EUR 191 (-231) thousand and consisted mainly of
interest payments to financial institutions and the translation effect of
Chinese RMB to EUR. The positive variance versus 2020 are related to exchange
rate profit mainly in the first quarter of the year.
Cash flow and financial position
In April-June 2021, the cash flow from operating activities amounted to EUR
-1,403 (107) thousand. Net cash used in investing activities was EUR -489 (-411)
thousand and relates to capitalized development expenses. Net cash from
financing activities amounted to EUR -6 (-92).
Consolidated cash and cash equivalents at the end of the period amounted to EUR
7,818 (11,742) thousand. Interest-bearing net debt totalled EUR -2,042 (-5,165)
thousand at the end of the period.
Net working capital was EUR 4,804 (3,218) thousand at the end of the period.
This increase in working capital is due to higher product delivery volumes and
increased trade receivables, especially in China.
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 Q2/2021 Q2/2020 Change,% H1/2021 H1/2020 Change,% 2020
Revenue 1,896 848 123.5 % 3,343 1,822 83.4 % 5,097
Gross profit 1,811 543 233.2 % 2,653 940 182.4 % 2,862
*
Gross margin% 95.5% 64.1% 79.4% 51.6% 56.1%
*
EBITDA 593 -121 591.1 % 362 -542 166.9 % -251
EBITDA margin 31.3% -14.2% 10.8% -29.7% -4.9%
*,%
Operating -292 -617 52.6 % -907 -1,375 34.0 % -1,820
result (EBIT)
Operating -15.4% -72.7% -27.1% -75.4% -35.7%
margin (EBIT)
*,%
*) Alternative performance measures, see section Alternative Performance
Measures for definitions and calculations.
April-June 2021
In April-June 2021, the Devices segment revenue increased by 123.5 percent to
EUR 1,896 (848) thousand against a weak COVID-19 affected second quarter of
last year. The increase was mainly driven by solid performance in China, but
also other key markets and sales channels showed good progress.
The gross margin increased to 95.5 percent from 64.1 percent in the previous
year due to the waived loan mentioned earlier. The Devices Segment’s other
operating income was EUR 623 (71) thousand in the second quarter, which
increased the gross margin of both periods. In the second quarter of 2021 the
gross margin adjusted for grants and the total amount of other operating income
would have been 62.6 percent compared to 55.7 percent in 2020.
EBITDA was EUR 593 (-121) thousand or 31.3 (-14.2) percent of revenue. The key
driver for the increase in EBITDA was the increase in revenue and gross margin,
and higher operating expenses while the comparison period last year was affected
by the COVID-19 related savings.
January-June 2021
In January-June 2021, the Devices segment revenue increased by 83.4 percent to
EUR 3,343 (1,822) thousand, mainly driven by the same reasons as for the second
quarter.
The gross margin increased to 79.4 percent from 51.6 percent in the previous
year. The Company received governmental grants of EUR 704 (71) thousand in. In
2021, the first half year gross margin adjusted for other operating income would
have been 58.3 percent compared to 47.6 percent in 2020. The first quarter of
2020 was affected by sourcing arrangements and purchases of certain key
components, which were carried out to secure our manufacturing capability in the
current COVID-19 situation.
EBITDA was EUR 362 (-542) thousand or 10.8 (-29.7) percent of revenue. The
reason for the increase in EBITDA was mainly the same as for the second quarter.
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 Q2/2021 Q2/2020 Change,% H1/2021 H1/2020 Change,% 2020
Revenue 2,116 1,749 21.0 % 4,613 3,809 21.1 % 7,913
Gross profit * 1,513 1,363 11.0 % 3,248 2,944 10.3 % 6,093
Gross margin % 71.5 % 78.0 % 70.4 % 77.3 % 77.0 %
*
EBITDA 248 366 -32.3 % 788 847 -6.9 % 1,926
EBITDA margin 11.7 % 20.9 % 17.1 % 22.2 % 24.3 %
*, %
Operating 97 213 -54.4 % 486 546 -11.2 % 1,323
result (EBIT)
Operating 4.6 % 12.2 % 10.5 % 14.3 % 16.7 %
margin (EBIT)
*, %
*) Alternative performance measures, see section Alternative Performance
Measures for definitions and calculations.
April – June 2021
In April-June 2021, The Software segment’s strong performance continued, and
revenue increased by 21.0 percent mainly driven by stable recurring business
from existing customers. Global screening solution projects continued well in
Asia and the Middle-East. The gross margin included other operating income of
EUR 16 thousand in 2020. EBITDA stood at EUR 248 (366) thousand or 11.7 (20.9)
percent of revenue, respectively. The profitability was affected by additional
recruitments and development work made to support the long-term growth.
January – June 2021
In January-June 2021, the Software segment revenue increased by 21.1 percent to
EUR 4,613 (3,809) thousand, mainly driven by the same reasons as for the second
quarter. The gross margin included other operating income of EUR 16 thousand in
2020. EBITDA was EUR 788 (847) thousand or 17.1 (22.2) percent of revenue.
Group-wide expenses
Group-wide expenses relate to functions supporting the entire group such as
treasury, group accounting, legal, HR, and IT.
April – June 2021
Group-wide operating expenses amounted to EUR 664 (570). The increase is mainly
related to last year’s saving program related to the COVID-19 pandemic.
January – June 2021
Group-wide operating expenses amounted to EUR 1,288 (1,205). The increase is
related to the same reasons as for the second quarter, i.e. last year’s saving
program related to the COVID-19 pandemic.
Personnel
Number of personnel at the end of the reporting period.
6/2021 6/2020
Devices 55 47
Software 41 41
Group common 19 15
Total 115 103
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 2020 is available on the company website www.optomed.com/investors/.
Annual General Meeting
On 28 April 2021, Optomed held its Annual General Meeting (AGM) that adopted the
financial statements 2020 and the remuneration report for governing bodies and
discharged the members of the Board of Directors and the CEO from liability for
2020. The AGM resolved that no dividend will be paid for the year 2020.
The number of members of the Board of Directors was confirmed as five:
·
Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam were re-elected
as members of the Board
· Xisi Guo was elected as a new member 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 500 is paid to the Chairman of
the Audit Committee for each Audit 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 AGM decided to 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 Tapio Raappana will continue as the auditor with principal
responsibility.
The AGM approved the authorization for the Board of Directors to repurchase
Optomed’s own shares and to accept them as pledge. Altogether no more than
1,400,314 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 General Meeting authorized the Board of Directors to decide on the issuance
of shares as well as the issuance of option rights 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 1,400,314. 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.
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)
· Seppo Mäkinen
· Anna Tenstam
Remuneration Committee:
·
Seppo Mäkinen (Chairman)
· Reijo Tauriainen
· Anna Tenstam
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 14,003,144
shares and the company held 609,678 shares in the treasury which approximately
corresponds to 4.4 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
2020 which was published on 12 March 2021. The complete report is available at
https://www.optomed.com/investors/. The risk position of Optomed has not changed
since then.
Flagging notifications
On 17 February 2021, the total holdings of treasury shares held by Optomed Plc
decreased to 4.61 per cent of all the registered shares.
On 8 April 2021, the total holdings in Optomed shares and votes held by OP
-Rahastoyhtiö Oy increased to 5.46 per cent of all of the registered shares in
Optomed.
On 28 April 2021, the total holdings in Optomed shares and votes held by BI
Asset Management Fondsmægler-selskab A/S increased to 5.69 per cent of all of
the registered shares in Optomed.
On 25 May 2021, the total holdings in Optomed shares and votes held by Robert
Bosch Venture Capital GmbH decreased to below 5.00 per cent of all of the
registered shares in Optomed.
Other events
On 7 May 2021
Optomed announced that it has received medical devices registration for its
Aurora camera in Brazil.
On 14 May 2021
Optomed announced that it has been selected as a partner to develop
Pihlajalinna’s imaging archive and distribution system.
On 4 June 2021
Optomed announced that it launches disposable eye cup for its handheld cameras.
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2021
4 November
Interim Report for 1 January – 30 September 2021
For more information, contact
Lars Lindqvist, CFO
Tel: +46 702 59 57 89
E-mail: lars.lindqvist@optomed.com
Seppo Kopsala, CEO
Tel.: +358 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. 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.
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,
amortisation
and impairment
losses
EBITDA margin, % EBITDA /
Revenue
Operating result Profit/loss
after
depreciation,
amortisation
and impairment
losses
Operating margin, % Operating
result /
Revenue
Adjusted operating Operating
result result
excluding items
affecting
comparability
Adjusted operating Adjusted
margin, % operating
result /
Revenue
Adjusted EBITDA EBITDA
excluding items
affecting
comparability
Adjusted EBITDA Adjusted EBITDA
margin % / Revenue
Items affecting Material items
comparability outside
ordinary course
of business
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 /
EBITDA (LTM), times Adjusted EBITDA
(for the last
twelve months,
LTM)
Earnings per share Net result /
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 thousands of euro Q2/2021 Q2/2020 H1/2021 H1/2020 2020
Revenue 4,012 2,597 7,956 5,631 13,011
Other operating income 624 87 705 89 157
Material and services -1,311 -777 -2,761 -1,836 -4,213
Gross profit 3,324 1,907 5,901 3,884 8,955
Operating profit/loss -859 -973 -1,710 -2,034 -2,906
(EBIT)
Items affecting
comparability
Adjusted EBIT -859 -973 -1,710 -2,034 -2,906
Depreciation, 1,036 648 1,572 1,134 2,173
amortization and
impairment losses
Adjusted EBITDA 177 -325 -138 -900 -733
Consolidated income statement
In thousands Q2/2021 Q2/2020 H1/2021 H1/2020 2020
of euro
Revenue 4,012 2,597 7,956 5,631 13,011
Other 624 87 705 89 157
operating
income
Materials and -1,311 -777 -2,761 -1,836 -4,213
services
Employee -2,257 -1,758 -4,405 -3,674 -7,319
benefit
expenses
Depreciation, -1,036 -648 -1,572 -1,134 -2,173
amortisation
and
Impairment
losses
Other -890 -474 -1,634 -1,110 -2,369
operating
expenses
Operating -859 -973 -1,710 -2,034 -2,906
result
Finance 103 79 342 154 452
income
Finance -128 -102 -151 -386 -794
expenses
Net finance -25 -22 191 -231 -341
expenses
Profit (loss) -884 -996 -1,519 -2,265 -3,247
before
income taxes
Income tax 20 20 39 39 70
expense
Loss for the -864 -976 -1,480 -2,226 -3,177
period
Loss for the
period
attributable
to
Owners of the -864 -976 -1,480 -2,226 -3,177
parent
company
Loss per
share
attributable
to owners
of
the parent
company
Weighted 13,353,833 11,696,476 13,353,833 11,696,476 13,262,766
average
number
of shares
Basic loss -0.06 -0.08 -0.11 -0.19 -0.24
per share
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro Q2/2021 Q2/2020 H1/2021 H1/2020 2020
Loss for the period -864 -976 -1,480 -2,226 -3,177
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Foreign currency translation -56 31 -134 40 77
difference
Other comprehensive income, net of -56 31 -134 40 77
tax
Total comprehensive income for the -920 -945 -1,614 -2,186 -3,100
period
Total comprehensive loss -920 -945 -1,614 -2,186 -3,100
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands of euro June 30, 2021 June 30, 2020 Dec 31, 2020
ASSETS
Non-current assets
Goodwill 4,256 4,256 4,256
Development costs 5,531 5,273 5,667
Customer relationships 1,497 1,719 1,608
Technology 687 789 738
Other intangible assets 451 491 485
Total intangible assets 12,422 12,528 12,753
Tangible assets 352 377 359
Right-of-use assets 989 873 1,165
Deferred tax assets 11 9 11
Total non-current assets 13,774 13,787 14,289
Current assets
Inventories 2,552 2,850 2,539
Trade and other receivables 5,501 2,970 3,637
Cash and cash equivalents 7,818 11,742 10,608
Total current assets 15,871 17,562 16,784
Total assets 29,646 31,349 31,073
In thousands of euro June 30, 2021 June 30, 2020 Dec 31, 2020
EQUITY
Share capital 80 80 80
Share premium 504 504 504
Reserve for invested 37,832 37,341 37,470
non-restricted equity
Translation 32 128 166
differences
Retained earnings -17,839 -15,151 -14,970
Profit (loss) for the -1,480 -2,226 -3,177
financial year
Total equity 19,129 20,676 20,073
LIABILITIES
Non-current
liabilities
Borrowings from 3,079 3,293 3,520
financial
institutions
Government loans 1,896 3,057 2,670
Lease liabilities 605 547 782
Deferred tax 501 578 540
liabilities
Total Non-current 6,081 7,476 7,512
liabilities
Current liabilities
Borrowings from 441 0 0
financial
institutions
Government loans 361 226 328
Lease liabilities 386 369 425
Trade and other 3,249 2,602 2,736
payables
Total current 4,436 3,197 3,489
liabilities
Total liabilities 10,517 10,673 11,001
Total equity and 29,646 31,349 31,073
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 37,470 166 -18,147 20,073
January 1,
2021
Comprehensive
income
Loss for the -1,480 -1,480
period
Other
comprehensive
income
Translation -134 -134
differences
Total -134 -1,480 -1,614
comprehensive
income for
the period
Share options 362 222 584
Total 362 222 584
transactions
with
owners of the
company
Other 86 86
adjustments
Balance at 80 504 37,832 32 -19,319 19,129
June 30, 2021
Equity
attributable
to
owners of the
parent
company
In thousands Share Share Reserve Translation Retained Total
of capital premium for differences earnings
euro invested
non
-restricted
equity
Balance at 80 504 37,341 89 -15,376 22,637
January 1,
2020
Comprehensive
income
Loss for the -2,226 -2,226
period
Other
comprehensive
income
Translation 40 40
differences
Total 40 -2,226 -2,186
comprehensive
income
for the
period
Share options 225 225
Total 0 225 225
transactions
with owners
of the
company
Other
adjustments
Balance at 80 504 37,341 128 -17,377 20,676
June
30, 2020
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 37,341 89 -15,376 22,637
January 1,
2020
Comprehensive
income
Loss for the -3,177 -3,177
period
Other
comprehensive
income
Translation 77 77
differences
Total 77 -3,177 -3,100
comprehensive
income for
the period
Share options 129 406 535
Total 129 406 535
transactions
with owners
of the
company
Other
adjustments
Balance at 80 504 37,470 166 -18,147 20,073
December
31, 2020
Consolidated cash flow statement
In thousands of Q2/202 Q2/2020 H1/2021 H1/2020 2020
euro 1
Cash flows from
operating
activities
Loss for the -864 -976 -1,480 -2,226 -3,177
financial year
Adjustments:
Depreciation, 1,036 648 1,572 1,134 2,173
amortisation and
impairment losses
Finance income and 20 22 -201 231 343
finance expenses
Other adjustments -445 51 -356 98 284
Cash flows before -253 -254 -465 -763 -377
change in net
working capital
Change in net
working capital:
Change in trade and -1,104 704 -1,702 1,237 496
other receivables
(increase (-) /
decrease (+))
Change in -200 -86 10 -389 -83
inventories
(increase (-) /
decrease (+))
Change in trade and 192 -226 536 -2,668 -2,402
other payables
(increase (+) /
decrease (-))
Cash flows before -1,365 139 -1,622 -2,582 -2,367
finance items
Interest paid -11 -11 -30 -39 -75
Other finance -27 -88 -8 -347 -725
expenses paid
Interest received 0 67 1 154 366
Net cash from -1,403 107 -1,659 -2,814 -2,801
operating
activities (A)
Cash flows from
investing
activities
Acquisition of -445 -346 -881 -654 -1,553
intangible assets
Acquisition of -43 -65 -164 -112 -268
tangible assets
Net cash used in -489 -411 -1,046 -766 -1,820
investing
activities
(B)
Cash flows from
financing
activities
Proceeds from share 125 0 362 0 92
subscriptions
Proceeds from loans 0 6 0 -174 -167
and borrowings
Repayment of loans -33 0 -225 -3,173 -3,233
and borrowings
Repayment of lease -97 -98 -216 -197 -390
liabilities
Net cash from -6 -92 -79 -3,544 -3,698
financing
activities (C)
Net cash from (used -1,897 -397 -2,784 -7,124 -8,319
in) operating,
investing and
financing
activities
(A+B+C)
Net increase -1,897 -397 -2,784 -7,124 -8,319
(decrease) in cash
and
cash equivalents
Cash and cash 9,767 12,145 10,608 18,866 18,866
equivalents at
beginning
of period
Effect of movements -51 -6 -6 -0 61
in exchange rate
on cash held
Cash and cash 7,818 11,742 7,818 11,742 10,608
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 31.12.2020 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, 2021. All presented figures have been rounded. Financial ratios have been
calculated using exact figures.
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 2020. This Interim financial statements do not include all of the
information required for a complete set of IFRS financial statements: 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.
IFRS IC finalized in April 2021 its agenda decision Configuration or
Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible Assets).
In this agenda decision IFRS IC considered, whether, applying IAS 38, the
customer recognises an intangible asset in relation to configuration or
customisation of the application software, and if an intangible asset is not
recognized, how the customer accounts for the configuration or customisation
costs. IFRIC agenda decisions have no effective date, so they are expected to
be applied as soon as possible. As the Group has cloud computing arrangements in
place, it has started to analyse, if this agenda decision has an impact to the
accounting policies applied to implementation costs in cloud computing
arrangements. The Group will undertake this analysis under the fall 2021, and
the possible impacts will be implemented retrospectively in the financial
statements 2021 at the latest.
This report has been authorised 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:
— capitalisation of development costs: determination of development expenditure
eligible for capitalisation
— impairment testing of development expenditures
Reportable segments
Q2/2021
In thousands of euro Devices Software Group Admin Total
External revenue 1,896 2,116 0 4,012
Net operating expenses -85 -603 0 -688
Margin 1,811 1,513 0 3,324
Depreciation and amortisation -885 -151 0 -1,036
Other expenses -1,218 -1,265 -664 -3,147
Operating result -292 97 -664 -859
Finance items 0 0 -25 -25
Loss before tax expense -292 97 -689 -884
Q2/2020
In thousands of euro Devices Software Group Admin Total
External revenue 848 1,749 0 2,597
Net operating expenses -305 -385 0 -690
Margin 543 1,363 0 1,907
Depreciation and amortisation -496 -153 0 -648
Other expenses -664 -997 -570 -2,232
Operating result -617 213 -570 -973
Finance items 0 0 -22 -22
Loss before tax expense -617 213 -593 -996
H1/2021
In thousands of euro Devices Software Group Admin Total
External revenue 3,343 4,613 7,956
Net operating expenses -690 -1,365 -2,055
Margin 2,653 3,248 - 5,901
Depreciation and amortisation -1,269 -303 -1,572
Other expenses -2,291 -2,460 -1,288 -6,038
Operating result -907 486 -1,288 -1,710
Finance items 0 0 191 191
Loss before tax expense -907 486 -1,098 -1,519
H1/2020
In thousands of euro Devices Software Group Admin Total
External revenue 1,822 3,809 0 5,631
Net operating expenses -883 -864 0 -1,747
Margin 940 2,944 0 3,884
Depreciation and amortisation -833 -300 0 -1,134
Other expenses -1,481 -2,097 -1,205 -4,784
Operating result -1,375 546 -1,205 -2,034
Finance items 0 0 -231 -231
Loss before tax expense -1,375 546 -1,437 -2,265
In thousands of euro Devices Software Group Admin Group
External revenue 7,309 7,668 0 14,977
Net operating expenses -3,109 -1,924 0 -5,033
Margin 4,200 5,744 0 9,944
Depreciation and amortisation -1,504 -757 0 -2,261
Other expenses -4,609 -4,077 -1,593 -10,279
Operating result -1,913 909 -1,593 -2,596
Finance items 0 0 -356 -356
Loss before tax expense -1,913 909 -1,949 -2,952
2020
Revenue
Disaggregation of revenue
In thousands of euro Q2/2021 Q2/2020 H1/2021 H1/2020 2020
Finland 2,047 1,727 4,505 3,743 7,777
China 876 355 1,651 440 2443
Other 1,089 515 1,800 1,448 2,791
Total 4,012 2,597 7,956 5,631 13,011
Other operating income
In thousands of euro Q2/2021 Q2/2020 H1/2021 H1/2020 2020
Other operating income 624 87 705 89 157
Total 624 87 705 89 157
Other operating income consist of received grants, profit from sales of fixed
assets and Business Finland loan conversion to grant. During the financial years
2020-2021 Optomed has received government grants from various organisations,
such as Business Finland.
Tangible assets
In thousands of euro Machinery Machinery Machinery and equipment
and and
equipment equipment
30.6.2021 30.6.2020 2020
Cost
Balance at January 1 2,257 1,992 1,992
Business combinations
Additions 165 111 265
Balance at End of 2,422 2,103 2,257
Period
Accumulated
depreciation and
impairment losses
Balance at January 1 -1,898 -1,585 -1,585
Depreciation -173 -141 -313
Balance at end of -2,070 -1,726 -1,898
period
Carrying amount at 359 406 406
January 1
Carrying amount at June 352 377 359
30/ December 31
Leases
Leased tangible assets
In thousands of euro 30.6.2021 30.6.2020 2020
Additions to right-of-use assets 27 0 484
Depreciation change for right-of-use assets -203 -203 -394
Carrying amount at the end of the reporting 989 873 1,165
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 30.6.2021 30.6.2020 2020
Current 386 547 425
Non-current 605 369 782
Total 991 916 1,207
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
At June 30 Goodwill Development Customer Technology Other
Total
2021 costs relationships intangible
assets
In thousands
of euro
Cost
Balance at 4,256 9,709 2,222 1,023 945
18,156
January 1
Additions - 831 - - 34 865
Balance at 4,256 10,541 2,222 1,023 979
19,021
June 30
-
Accumulated -
amortisation
and
impairment
losses
Balance at - -4,043 -614 -286 -461
-5,403
January 1
Amortization - -486 -111 -51 -67 -715
Impairment - -482 - - - -482
losses
Balance at - -5,010 -725 -337 -527
-6,599
June 30
-
Carrying 4,256 5,667 1,608 738 485
12,753
amount at
January 1
Carrying 4,256 5,531 1,497 687 451
12,422
amount at
June
30
At June 30 Goodwill Development Customer Technology Other
Total
2020 costs relationships intangible
assets
In thousands
of euro
Cost
Balance at 4,256 8,246 2,222 1,023 859
16,606
January 1
Additions - 617 - - 32 650
Balance at 4,256 8,864 2,222 1,023 891
17,256
June 30
-
Accumulated -
amortisation
and
impairment
losses
Balance at - -3,029 -392 -184 -340
-3,945
January 1
Amortization - -411 -111 -51 -61 -634
Impairment - -150 - - - -150
losses
Balance at - -3,590 -503 -235 -401
-4,729
June 30
-
Carrying 4,256 5,218 1,829 840 519
12,662
amount at
January 1
Carrying 4,256 5,273 1,719 789 491
12,528
amount at
June
30
At December Goodwill Development Customer Technology Other
Total
31 2020 costs relationships intangible
assets
In thousands
of euro
Cost
Balance at 4,256 8,246 2,222 1,023 859
16,606
January 1
Additions - 1,463 - - 86
1,549
Balance at 4,256 9,709 2,222 1,023 945
18,156
December 31
-
Accumulated -
amortisation
and
impairment
losses
Balance at - -3,029 -392 -184 -340
-3,945
January 1
Amortization - -854 -222 -102 -121
-1,298
Impairment - -160 - - - -160
losses
Balance at - -4,043 -614 -286 -461
-5,403
December 31
-
Carrying 4,256 5,218 1,829 840 519
12,662
amount at
January 1
Carrying 4,256 5,667 1,608 738 485
12,753
amount at
December 31
Financial assets Carrying amounts - at amortised cost
Current financial assets
In thousands of euro 30.6.2021 30.6.2020 2020
Trade receivables
Recourse factoring 351 461 131
Other trade receivables 3,787 1,255 2,508
Total trade receivables 4,138 1,715 2,639
Cash and cash equivalents 7,818 11,742 10,608
Total 11,957 13,457 13,247
Financial liabilities
In thousands of euro 30.6.2021 30.6.2020 31.12.2020
Non-current financial liabilities
Borrowings from financial institutions 3,079 3,293 3,192
Government loans 1,896 2,831 2,998
Lease liabilities 605 547 782
Total 5,580 6,672 6,972
Current financial liabilities
Borrowings from financial institutions 441 0 0
Government loans 361 226 328
Lease liabilities 386 369 425
Trade payables 913 446 595
Total 2,100 1,040 1,348
Total financial liabilities 7,680 7,712 8,320
Business Finland loan amount of 538 thousand was converted to grant during the
Q2 2021.
Fair values - financial liabilities measured at amortised cost
Optomed considers that the carrying amounts of the financial liabilities
measured at amortised cost substantially equal to their fair values. This
estimate corresponds to the fair value hierarchy Level 3, as the measurement of
the said liabilities is based on Optomed management view.
Financial covenant
Optomed's borrowings from financial institutions contain a financial covenant
(equity ratio) and Optomed also has to meet certain key operative targets. The
borrowings will be repaid in accordance with the new repayment schedule.
Optomed has to comply with the financial covenant terms specified in the loan
agreement terms at the financial year-end. Equity ratio is calculated in FAS
figures using the agreed formula. The table below summarises the Group's
financial covenant term and compliance during reporting period.
Equity ratio
Covenant term Actual ratio Applicable level
At June 30,2021 35 % 68.87 % Optomed Group
At June 30, 2020 25 % 70.18 % Optomed Group
At December 31, 2020 25 % 69,03 % Optomed Group
Related party transactions
In thousands of euro Revenues Trade receivables Other expenses
Jan 1 - Jun 30 2021 1,734 2,477 -48
Jan 1 - Jun 30 2020 773 467 -30
Jan 1 - Dec 31 2020 2,685 1,389 -103
Revenues and trade receivables relate to the major shareholders of Optomed Plc
considered to be related parties to the parent company.
Other expenses consist of consulting fees and travel expenses paid to the
Chairman of the Board of Directors.
Events after the review period
There were no significant events after the reporting period.