OptiBiotix reports 21pc decline in first-half revenue

27th Sep 2024 12:43

(Sharecast News) - OptiBiotix Health reported a 21.3% decline in revenue to £0.28m for the six months ended 30 June on Friday, compared to £0.35m in the same period last year.

The AIM-traded firm said that despite the decrease in reported revenue, it had a significantly increased order book and a strong sales performance, with sales orders received during the period substantially higher than in the first half of 2023.

E-commerce sales also saw a three-fold increase, contributing to OptiBiotix's strategic and commercial progress.

The company maintained a healthy balance sheet, with gross assets of £8m and no debt, while cash reserves rose to £1.26m from £0.89m a year earlier.

In March, OptiBiotix raised £1.35m through a share placing, issuing 6,752,500 new shares.

The capital raise supported the company's ongoing initiatives, including the launch of LeanBiome in partnership with sports nutrition brand Muscletech, and a new agreement with Morepen for SlimBiome products.

A manufacturing agreement with KAG Industries was also secured.

Additionally, a third human study on SlimBiome, conducted by Roehampton University, demonstrated significant benefits for appetite and hunger regulation without safety or tolerance issues.

The study's findings highlighted the product's potential for non-invasive weight management, aligning with growing interest from consumers, media, and the pharmaceutical industry.

"The fundamentals of our marketplace remain very exciting, with a range of recent market reports highlighting that products across the entire OptiBiotix portfolio have the potential to meet growing demand as solutions to a wide and increasing range of lifestyle-related health challenges," said chief executive officer Stephen O'Hara.

"Given the excellent customer reviews, high customer return rates, multiple industry awards, and new customers launching products in key markets we believe there is a substantive opportunity to leverage market interest by increasing customer awareness of our products either directly through social media channels or indirectly through investing with our partners, and so build a successful and profitable business.

"The commercial traction we are now enjoying in our first-generation products with large partners in key markets, and the interest shown by other partners in our potentially industry-changing second-generation products, allows us to look to the future with a high degree of confidence."

O'Hara said that in the shorter term, based on orders already placed, the company was also confident that full-year revenue would be "well ahead" of those reported in 2023.

"With appetite suppression, gut health, sugar alternatives and modulation of the human microbiome all attracting ever-increasing interest, we believe that the company is strongly placed to achieve profitability through growing sales of its now proven first-generation products, while progressing towards the commercialisation of our even more exciting second-generation products, SweetBiotix and human microbiome modulators.

"We are confident that our strategy will deliver an improved sales performance for the rest of this year, and will continue in 2025, and look forward to demonstrating the long-term growth potential of the group."

At 1157 BST, shares in OptiBiotix Health were down 9.21% at 15.21p.

Reporting by Josh White for Sharecast.com.