("Agronomics" or the "Company")
Unaudited Interim Results for the six-month period ending
Financial highlights
● The Company's Net Asset Value per Share at
● Investment income, including loan interest and net unrealised gains, was
● Operating expenses for the period were
● A net loss of
● The carrying amount of invested assets at the half year was
● Net assets decreased to
Investment highlights
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"The Board anticipates a number of positive developments within the portfolio during 2024. With the first regulatory approvals for the field now having been granted in major jurisdictions such as the US, we are confident that in 2024 we will witness additional regulatory approvals and commercial partnerships from companies within the Agronomics portfolio. In addition, notwithstanding that broader financial conditions remain challenging, it is anticipated that several portfolio companies will achieve material funding rounds providing them with the capital they need to continue to improve their processes and push their production towards cost parity with conventional production methods."
For further information please contact:
Agronomics Limited |
Beaumont |
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Limited |
SEC Newgate |
The Company |
Nomad |
Joint Broker |
Joint Broker |
Joint Broker |
Public Relations |
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF
Chairman's statement
Introduction
I am pleased to present the Unaudited Interim Results for
This half-year, Agronomics focused on supporting its existing portfolio through follow-on investments and witnessed the closing of a number of substantial funding rounds and strategic partnerships. In August, Agronomics co-led the
During the period, Agronomics' portfolio benefited from the increasing interest of governments and companies alike in harnessing biomanufacturing for the development of more sustainable and secure food production systems. In October, portfolio company
In the past few months, we have also witnessed further pivotal moments that represent accelerating momentum in the sector as companies move from research and development validation towards commercialisation. Precision fermentation company
Agronomics has a healthy balance sheet entering into 2024 and intends to preserve the majority of its capital for follow-on investments into its existing portfolio companies to assist with the achievement of major milestones such as regulatory approvals, product launches, or building out their commercial facilities. The Company continues to monitor and review new and emerging technologies within the field of cellular agriculture and will also look to expand the portfolio for further diversification should the opportunity arise.
Investment Review
During the period, the Company made two follow-on investments, had four positive revaluations and saw the portfolio companies receive government support and form new strategic partnerships:
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The portfolio weightings by total investments held at
Company |
Product Focus |
NAV Weighting |
|
Contract Manufacturer for Precision Fermentation |
12.08% |
SuperMeat |
Cultivated Poultry |
10.27% |
BlueNalu |
Cultivated Bluefin Tuna |
8.76% |
Meatable |
Cultivated Pork and Beef |
8.30% |
|
Novel Air Protein |
7.90% |
Formo |
Precision Fermentation - Dairy Proteins |
6.53% |
All |
Precision Fermentation - Dairy Proteins |
5.51% |
VitroLabs |
Cultivated Leather |
5.16% |
Geltor |
Precision Fermentation - Collagen |
5.12% |
|
Fermentation - Palm Oil |
4.79% |
|
Precision Fermentation - Egg Proteins |
4.31% |
Onego Bio |
Precision Fermentation - Egg Proteins |
4.10% |
Meatly |
Cultivated Pet Food |
3.40% |
The LIVEKINDLY Collective |
Plant-based Meat |
2.99% |
|
Cultivated Beef |
2.08% |
CellX |
Cultivated Chicken |
1.95% |
GALY |
Cultivated Cotton |
1.88% |
Tropic |
Gene-Edited Crops |
1.62% |
California Cultured |
Cultivated Coffee and Cocoa |
1.19% |
Hydgene Renewables |
Developer of synthetic biology technology for hydrogen production |
0.92% |
|
Precision Fermentation - Pet Food |
0.50% |
Other |
N/A |
0.64% |
Under our valuation policy, it is not possible to reflect significant uplifts between valuation events, and therefore the Board believes that the stated NAV per share may not fully represent the current intrinsic value of the portfolio companies given their continuing progress in this rapidly growing sector. Investments will be written down in cases where we are not satisfied that sufficient progress is occurring.
Financial Review
The Company recorded a net loss for the period of
The carrying amount of invested assets is
Financing activity
During the period, 2,210 new ordinary shares were issued following the exercise of warrants. Gross proceeds of
The Board approved a share buyback programme for an aggregate amount of up to
Strategy and Outlook
The Board anticipates a number of positive developments within the portfolio during 2024. With the first approvals for the field now having been granted to the sector, 2024 should see multiple product approvals and commercial partnerships formed within Agronomics' own portfolio. In addition, notwithstanding that broader financial conditions remain challenging, it is anticipated that several portfolio companies will achieve material funding rounds providing them with the capital they need to continue to improve their processes and push their production towards cost parity with conventional production methods.
In general, the interest in innovation and the adoption of technologies to improve food systems remains high. The sector has seen increasing positive rhetoric from forward thinking governments, including the
The Board will continue to review new opportunities in line with its Investing Policy but with an increased focus on the existing portfolio. Further details of our Investing Policy can be found on the Company's website at www.agronomics.im.
Chairman
Condensed statement of comprehensive income
For the period ended
|
Notes |
Period ended (unaudited) |
Period ended (unaudited) |
|
|
£ |
£ |
Income |
|
|
|
Net income from financial instruments at fair value through profit and loss |
2 |
608,573 |
19,374,741 |
|
|
──────── |
──────── |
|
|
608,573 |
19,374,741 |
Operating expenses |
|
|
|
Directors' fees |
|
(75,000) |
(50,000) |
Other operating costs |
4 |
(756,570) |
(800,227) |
Unrealised foreign exchange losses |
|
(792,957) |
(437,700) |
|
|
──────── |
──────── |
Loss/(profit) from operating activities |
|
(1,015,954) |
18,086,814 |
|
|
|
|
Interest received |
2 |
578,030 |
495,788 |
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|
──────── |
──────── |
Loss/(profit) before taxation |
|
(437,924) |
18,582,602 |
|
|
|
|
Taxation |
|
- |
- |
|
|
──────── |
──────── |
Loss/(profit) for the period |
|
(437,924) |
18,582,602 |
|
|
|
|
Other comprehensive income |
|
- |
- |
|
|
──────── |
──────── |
Total comprehensive Loss/(profit) for the period |
|
(437,924) |
18,582,602 |
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════════ |
════════ |
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|
|
|
Basic profit per share (pence) |
5 |
(0.044) |
1.91 |
Diluted profit per share (pence) |
5 |
(0.044) |
1.32 |
The Directors consider that the Company's activities are continuing.
The notes on pages 8 to 10 form part of these interim financial statements.
Condensed statement of financial position
As at
|
Notes |
31/12/202 (unaudited) |
(audited) |
|
|
£ |
£ |
Current assets |
|
|
|
Financial assets at fair value through profit or loss |
6 |
145,879,692 |
141,773,297 |
Bank deposits |
|
16,972,256 |
10,000,000 |
Trade and other receivables |
|
142,258 |
335,810 |
Cash and cash equivalents |
|
5,035,088 |
18,100,498 |
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──────── |
──────── |
Total assets |
|
168,029,294 |
170,209,605 |
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════════ |
════════ |
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Equity |
|
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|
Share capital |
|
993 |
992 |
Share premium |
|
134,482,024 |
134,481,365 |
Share reserve |
|
1,686,336 |
1,686,336 |
Accumulated earnings |
|
31,656,895 |
32,094,819 |
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──────── |
──────── |
Total equity |
|
167,826,248 |
168,263,512 |
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Current liabilities |
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Trade and other payables |
7 |
203,046 |
1,946,093 |
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──────── |
──────── |
Total liabilities |
|
203,046 |
1,946,093 |
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──────── |
──────── |
Total equity and liabilities |
|
168,029,294 |
170,209,605 |
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════════ |
════════ |
The notes on pages 8 to 10 form part of these interim financial statements.
These interim financial statements were approved by the Board of Directors on
Director
Condensed statement of changes in equity
For the period ended
|
|
Share capital £ |
Share premium £ |
Share reserve £ |
Retained earnings £ |
Total £ |
|
|
|
|
|
|
|
Balance at (audited) |
|
968 |
129,855,667 |
4,341,639 |
9,714,629 |
143,912,903 |
|
|
|
|
|
|
|
Total comprehensive profit for the period |
|
- |
- |
- |
18,582,602 |
18,582,602 |
Issue of shares |
|
23 |
4,353,179 |
(4,341,639) |
- |
11,563 |
|
|
────── |
──────── |
─────── |
──────── |
──────── |
Balance at |
|
991 |
134,208,846 |
- |
28,297,231 |
162,507,068 |
|
|
══════ |
════════ |
═══════ |
════════ |
════════ |
|
|
Share capital £ |
Share premium £ |
Share reserve £ |
Retained earnings £ |
Total £ |
|
|
|
|
|
|
|
Balance at (audited) |
|
992 |
134,481,365 |
1,686,336 |
32,094,819 |
168,263,512 |
|
|
|
|
|
|
|
Total comprehensive profit for the period |
|
- |
- |
- |
(437,924) |
(437,924) |
Issue of shares |
|
1 |
659 |
- |
- |
660 |
|
|
────── |
──────── |
─────── |
──────── |
──────── |
Balance at |
|
993 |
134,482,024 |
1,686,336 |
31,656,895 |
167,826,248 |
|
|
══════ |
════════ |
═══════ |
════════ |
════════ |
The notes on pages 8 to 10 form part of these interim financial statements.
Condensed statement of cash flows
For the period ended
|
Notes |
Period ended |
Period ended |
|
|
(unaudited) |
(unaudited) |
|
|
£ |
£ |
|
|
|
|
Cash flows from operating activities |
|
|
|
Loss/(profit) for the period |
|
(437,924) |
18,582,602 |
|
|
|
|
Purchase of investments |
|
(4,175,055) |
(18,213,217) |
Interest received - non-cash |
|
(578,030) |
(495,788) |
Unrealised gains on investments |
2 |
(608,573) |
(19,374,741) |
Unrealised foreign exchange losses on investments |
|
764,781 |
(71,775) |
|
|
─────── |
─────── |
Operating loss before changes in working capital |
|
(5,034,801) |
(19,572,919) |
|
|
|
|
Change in trade and other receivables |
|
193,552 |
(4,076) |
Change in trade and other payables |
|
(1,743,047) |
(2,369,092) |
|
|
─────── |
─────── |
Net cash flows from operating activities |
|
(6,584,296) |
(21,946,087) |
|
|
═══════ |
═══════ |
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds from issue of shares |
|
660 |
11,563 |
Cash interest received |
|
490,483 |
277,273 |
|
|
─────── |
─────── |
Net cash flows from financing activities |
|
491,143 |
288,836 |
|
|
═══════ |
═══════ |
|
|
|
|
Cash flows from investing activities |
|
|
|
Bank deposits not considered cash and cash equivalents (net movement) |
|
(6,972,257) |
11,914,390 |
|
|
─────── |
─────── |
Net cash from investing activities |
|
(6,972,257) |
11,914,390 |
|
|
═══════ |
═══════ |
|
|
|
|
Decrease in cash and cash equivalents |
|
(13,065,410) |
(9,742,861) |
|
|
|
|
Cash and cash equivalents at beginning of period |
|
18,100,498 |
31,458,326 |
|
|
─────── |
─────── |
Cash and cash equivalents at the end of period |
|
5,035,088 |
21,715,465 |
|
|
═══════ |
═══════ |
The notes on pages 8 to 10 form part of these interim financial statements.
1 Significant accounting policies
The unaudited condensed financial statements of the Company (the "Financial Information") are prepared in accordance with
The accounting policies and methods of computation and presentation adopted in the preparation of the Financial Information are consistent with those described and applied in the financial statements for the year ended
The unaudited condensed financial statements do not constitute statutory financial statements. The statutory financial statements for the year ended
The preparation of the Financial Information requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results could differ materially from these estimates. In preparing the Financial Information, the critical judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended
The Financial Information is presented in Great British Pounds, rounded to the nearest pound, which is the functional currency and also the presentation currency of the Company.
2 Net income from financial instruments at fair value through profit and loss
|
(unaudited) £ |
(unaudited) £ |
Net unrealised gains on investments |
608,573 |
19,374,741 |
|
═══════ |
═══════ |
3 Performance fee
|
(unaudited) £ |
(unaudited) £ |
Performance fee |
- |
- |
|
═══════ |
═══════ |
At the election of the Company, the Shellbay fee shall be payable either in whole or in part by the issue of new shares at a price equal to the mid-price on the last day of the relevant Qualifying Period (being the Company's accounting year from 1 July to 30 June) or grant of nil price warrants over shares; or in cash; or (with the agreement of Shellbay), in cash-equivalents (such as shares), and other assets held by the Company. No fees were payable or accrued for the current period (
4 Other operating costs
|
(unaudited) £ |
(unaudited) £ |
|
|
|
Auditors' remuneration |
31,000 |
30,000 |
Insurance |
28,242 |
19,741 |
Professional fees |
175,250 |
292,586 |
Sundry expenses |
522,078 |
457,900 |
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─────── |
─────── |
Total other costs |
756,570 |
800,227 |
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═══════ |
═══════ |
The Company has no employee's other than the Directors.
5 Basic and diluted profit per share
The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares, on the assumed conversion of all dilutive share options.
|
£ |
£ |
(Loss)/profit for the period |
(437,924) |
18,582,602 |
|
No. |
No. |
Weighted average number of ordinary shares in issue |
993,152,986 |
973,278,666 |
Dilutive effect of shares to be issued |
434,342,919 |
435,440,939 |
Diluted number of ordinary shares |
1,427,495,905 |
1,408,719,605 |
Basic (loss)/earnings per share (pence) |
(0.044) |
1.91 |
Diluted (loss)/earnings per share (pence) |
(0.044) |
1.32 |
6 Financial assets at fair value through profit or loss
A wholly owned subsidiary entity of the Company,
|
|
|
|
(unaudited) £ |
(audited) £ |
Quoted |
85,192 |
177,330 |
Unquoted |
59,704 |
7,417,071 |
Investment in subsidiary |
145,734,796 |
134,178,896 |
|
─────── |
─────── |
|
145,879,692 |
141,773,297 |
|
═══════ |
═══════ |
The composition of the investments held, both directly and indirectly through the Subsidiary in the underlying portfolio, is as follows:
|
|
|
|
(unaudited) £ |
(audited) £ |
Equities |
143,641,062 |
132,664,299 |
Convertible loan notes and SAFEs* |
2,238,630 |
9,108,998 |
|
─────── |
─────── |
|
145,879,692 |
141,773,297 |
|
═══════ |
═══════ |
* A SAFE is a Simple Agreement for Future Equity. SAFE Agreements have similar characteristics to Convertible Loans and are designed to provide an early investor with an "edge" ahead of a larger planned funding. The edge is typically conversion of funds advanced for new equity at a discount to the subsequent raise.
7 Trade and other payables
|
|
|
|
(unaudited) £ |
(audited) £ |
Provision for audit fee |
24,320 |
57,488 |
Trade creditors |
178,726 |
202,269 |
Provision for Shellbay fee |
- |
1,686,336 |
|
────── |
────── |
|
203,046 |
1,946,093 |
|
══════ |
══════ |
During the period, the cash portion of the fee due to Shellbay was settled in full. See note 8.
8 Related party transactions
Under an agreement dated
Under an updated agreement dated
No fees were payable or accrued for the current period (
During the period, the Shellbay fee due at
In accordance with the Company's published investment strategy,
9 Commitments and contingent liabilities
There are no known commitments or contingent liabilities as at the period end.
10 Events after the reporting date
Post period end, the balance of the Shellbay fee of
END