MyHealthChecked PLC on Monday proposed a share consolidation and announced a fall in its annual profit.
The Cardiff-based healthcare company said the share consolidation, to be voted on at its annual general meeting on May 11, will improve the marketability of the shares by way of a higher share price. It also said it hopes to reduce volatility in its price by narrowing the spread of its bid and offer price.
As of Monday, MyHealthChecked has about 780 million shares in issue.
Under the terms of the consolidation, every 15 shares are to be consolidated into 1 ordinary share.
‘Assuming a share capital of [780.1 million] existing ordinary shares immediately prior to the record date, following completion of the share consolidation, the company will have [52.0 million] new ordinary shares in issue,’ the company added.
Additionally, MyHealthChecked posted revenue of £22.3 million for 2022, up 36% from £16.4 million in 2021. It said the increase was due to the significant demand from top high street pharmacy retailers for Covid lateral flow tests.
Pretax profit, however, fell 25% to £1.5 million from £2.0 million, as sales & marketing costs rose to £798,000 from £699,000 a year earlier.
The company said the rise in costs was due to the ‘increased investment in marketing activities associated with the new and planned product launches’. It incurred an additional consideration of £987,000 payable on the acquisition of The Genome Store Ltd, compared to none in 2021.
Looking ahead, the company said it sees steady sales in 2023, and is ready to respond to spikes in demand as the year progresses.
The company predicted that it will see a ‘reduction in the demand for Covid tests’. It expects testing to remain an essential part of our business into 2023 and beyond‘ it said, however.
Chief Executive Officer Penny McCormick said: ’MHC has not only established itself as a player in the wellness industry but has also achieved excellent financial results in the last two years. Our commitment to innovation, customer satisfaction, and financial stability and management has set us on a path to delivering our goal of sustained liquidity.‘
Shares were down 2.0% at 1.03 pence each on Monday around midday in London. Shares are down 51% over the past 12 months.
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