Optomed Plc: Interim report, January – September 2023

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Optomed Plc Stock Exchange Release 3 November 2023 at 9:00, Helsinki

Optomed Plc: Interim report, January – September 2023

July – September 2023

 

  • Revenue increased by 14.0 percent to EUR 4.2 (3.7) million.
  • Devices segment revenue increased by 7.5 percent to EUR 1.8 (1.7) million due to increased distributor sales.
  • Software segment revenue increased by 19.4 percent to EUR 2.4 (2.0) million driven by strong healthcare solution sales.
  • Adjusted EBITDA amounted to EUR 0.3 (0.1) million corresponding to 6.2 (3.9) percent of revenue. EBITDA amounted to EUR -0.0 (0.1) million. The comparison period both EBITDA and Adjusted EBITDA were positively affected by a EUR 0.8 million loan waiver.
  • Record-breaking cash flow from operating activities amounted to EUR 767 (-504) thousand.
  • Juho Himberg started as the CEO on 1 October 2023.
  • Optomed successfully completed directed share issue raising gross proceeds of EUR 4.3 million.
  • Outlook unchanged: Optomed expects its full year 2023 revenue to grow compared to 2022.

 

January – September 2023

 

  • Revenue increased by 7.4 percent to EUR 11.4 (10.6) million.
  • Devices segment revenue decreased by 3.3 percent to EUR 4.0 (4.1) million.
  • Software segment revenue increased by 14.2 percent to EUR 7.5 (6.5) million.
  • Adjusted EBITDA amounted to EUR -0,7 (-1,6) million corresponding to -6.2 (-15.1) percent of revenue.


Key figures

 

EUR, thousand

Q3/2023

Q3/2022

Change, %

Q1-Q3/2023

Q1-Q3/2022

Change, %

2022

Revenue

4,218

3,700

14.0%

11,440

10,648

7.4%

14,660

Gross profit *

2,841

2,967

-4.2%

7,803

7,305

6.8%

10,069

Gross margin % *

67.4%

80.2%

 

68.2%

68.6%

 

68.7%

EBITDA

-48

145

-133.2%

-1,024

-1,604

36.2%

-1,952

EBITDA margin *, %

-1.1%

3.9%

 

-8.9%

-15.1%

 

-13.3%

Adjusted EBITDA *

263

145

80.9%

-713

-1,604

55.6%

-1,952

Adjusted EBITDA margin *, %

6.2%

3.9%

 

-6.2%

-15.1%

 

-13.3%

Operating result (EBIT)

-603

-1,411

57.3%

-2,655

-4,227

37.2%

-5,097

Operating margin (EBIT) *, %

-14.3%

-38.1%

 

-23.2%

-39.7%

 

-34.8%

Adjusted operating result (EBIT) *

-291

-1,411

79.3%

-2,343

-4,227

44.6%

-5,097

Adjusted operating margin (EBIT margin) *, %

-6.9%

-38.1%

 

-20.5%

-39.7%

 

-34.8%

Net profit/ loss

-439

-1,377

68.1%

-2,911

-4,075

28.6%

-5,472

Earnings per share

-0.03

-0.10

71.9%

-0.18

-0.29

37.1%

-0.37

Cash flow from operating activities

767

-504

252.2%

-120

-2,093

94.3%

-2,370

Net Debt

-4,890

-271

1,707.5%

-4,890

-271

1,707.5 %

-3,251

Net debt/ EBITDA (LTM) *

3.6

0.1

 

3.6

0.1

 

1.7

Net debt/ Adjusted EBITDA (LTM) *

4.6

0.1

 

4.6

0.1

 

1.7

Equity ratio  *

68.9%

63.3%

 

68.9%

63.3%

 

65.0%

R&D expenses personnel

297

251

18.0%

942

850

10.9%

1,198

R&D expenses other costs

192

124

55.2%

505

480

5.4%

661

Total R&D expenses

489

375

30.3%

1,447

1,329

8.9%

1,859

 

*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.

Optomed presents Adjusted EBITDA and Adjusted operating result as alternative performance measures to enhance comparability of business performance between reporting periods. In July-September 2023, items affecting comparability amounted to EUR 311 thousand and related to increased credit risk with respect to an overdue trade receivable from a customer in China.

CEO Review

 

Optomed had a great third quarter and I’m very delighted about our performance. Our results were beyond satisfactory. During the quarter, we received among others large customer orders from Spain and China that provide future growth potential in both regions.

 

In the face of challenges, our team's dedication and strategic execution have propelled us beyond merely satisfactory outcomes. Key financial metrics, including cash flow from operating activities and adjusted EBITDA reflect the effectiveness of our initiatives. When comparing results to the previous year it is important to highlight that during the quarter Optomed received a loan waiver in the amount of EUR 841 thousand that was treated as other operating income and, therefore, affecting third quarter results positively.

 

While our success in Q3 is gratifying, I must also address the situation of the FDA clearance for our AI fundus camera Optomed Aurora AEYE. At this point, there are no further updates. We are actively collaborating with our partners and regulatory authorities to expedite the clearance process.

 

Looking forward, we are energized by the momentum gained and remain steadfast in our pursuit of excellence. Our shareholders continued trust and investment are pivotal to our success, and we are dedicated to delivering sustained value. We remain optimistic but cautious.

 

Thank you for your confidence in our company.

 

 

Juho Himberg

CEO

Outlook 2023


Optomed expects its full year 2023 revenue to grow compared to 2022.

 

Telephone conference


A telephone conference for analysts, investors and media will be arranged on 3 November 2023 at 11.00 EET, (10.00 CET). The event will be held in English. The presentation material will be available at www.optomed.com/investors 10.00 EET 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 197 712 168#.

 

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

 

July – September 2023

 

In July-September 2023, Group revenue increased by 14.0 percent to EUR 4,218 (3,700) thousand. Devices segment revenue increased by 7.5 percent to EUR 1,825 (1,697) thousand. The Software segment revenue increased by 19.4 percent to EUR 2,393 (2,003) thousand. All sales channels in both Software and Devices segments performed well, except for OEM sales channel.

 

In July-September 2023, the gross margin decreased to 67.4 from 80.2 percent of last year. During the comparison period, the gross margin was negatively affected by an inventory provision of EUR 200 thousand, and Optomed was granted a loan waiver in the amount of EUR 841 thousand treated as other operating income and, therefore, affecting the gross margin positively. The gross margin for the third quarter of 2023 adjusted for grants and other operating income is 68.2 percent compared to comparison period 57.4 percent.

 

EBITDA decreased and it was EUR -48 (145) thousand and adjusted EBITDA was EUR 263 (145) thousand. The comparison period EBITDA was positively affected by the previously mentioned loan waiver.

 

EBIT improved and it was EUR -603 (-1,411) thousand and adjusted EBIT was EUR -291 (-1,411) thousand.

 

In July-September 2023, net financial items amounted to EUR 144 (15) thousand and consisted mainly of interest payments to financial institutions and the translation effect of CNY and USD to EUR.

 

January – September 2023

 

In January-September 2023, Group revenue increased by 7.4 percent to EUR 11,440 (10,648) thousand. The growth was driven by the Software segment as the Devices segment’s revenue decreased by 3.3 percent while the Software segment’s revenue increased by 14.2 percent.

 

The gross margin decreased to 68.2 percent from 68.6 percent last year.

 

EBITDA amounted to EUR -1,024 (-1,604) thousand and adjusted EBITDA was EUR -713 (-1,604) thousand.

 

EBIT was EUR -2,655 (-4,227) thousand and adjusted EBIT was EUR -2,343 (-1,604) thousand. The improvement is due to the combination of improved gross profit and decreased OPEX.

 

Net financial items amounted to EUR -315 (92) thousand and consisted mainly of interest payments to financial institutions and the translation effect of CNY and USD to EUR.

 

Cash flow and financial position

 

July – September 2023

 

In July-September 2023, the cash flow from operating activities amounted to EUR 767 (-504) thousand. Net cash used in investing activities was EUR -615 (-797) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR 3,721 (-172) thousand. Optomed completed a directed share issue consisting of 1,589,042 shares and collected gross proceeds of approximately EUR 4.3 million in September 2023.

 

Consolidated cash and cash equivalents at the end of the period amounted to EUR 9,565 (5,668) thousand. Interest-bearing net debt was EUR -4,890 (-271) thousand at the end of the period.

 

Net working capital was EUR 2,802 (4,138) thousand at the end of the period.

 

 Optomed has large trade receivables from a Chinese customer. The customer missed a payment during the quarter and, consequently, the specific loss allowance weighted average loss rate was increased from 30% to 50%, which reflects an increase of EUR 311 thousand. The total amount of the receivable in the balance sheet is now EUR 778 thousand.

 

January – September 2023

 

In January-September 2023, the cash flow from operating activities amounted to EUR -120 (-2,093) thousand.

 

Net cash used in investing activities was EUR -1,828 (-2,471) thousand and relates to capitalized development expenses.

 

Net cash from financing activities amounted to EUR 3,024 (3,380) thousand.

 

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

Q3/2023

Q3/2022

Change, %

Q1-Q3/2023

Q1-Q3/2022

Change, %

2022

Revenue

1,825

1,697

7.5%

3,986

4,122

-3.3%

5,398

Gross profit *

1,124

1,592

-29.4%

2,356

2,875

-18.0%

3,738

Gross margin % *

61.6%

93.8%

 

59.1%

69.7%

 

69.3%

EBITDA

-50

546

-109.2%

-693

-417

-66.2%

-670

EBITDA margin *, %

-2.7%

32.2%

 

-17.4%

-10.1%

 

-12.4%

Operating result (EBIT)

-413

-844

51.1%

-1,769

-2,550

30.6%

-3,159

Operating margin (EBIT) *, %

-22.6%

-49.7%

 

-44.4%

-61.9%

 

-58.5%

 

*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.

 

July-September 2023

 

In July-September 2023, the Devices segment revenue increased by 7.5 percent to EUR 1,825 (1,697) thousand. The revenue growth was driven especially by the global distributor and China sales channels but also the revenue in the US market continued on its growth trajectory. During the quarter, Optomed provided a large device delivery to a Chinese customer and a significant diabetic retinopathy screening solution consisting of Optomed Aurora IQ fundus cameras and related software solutions to a public sector end customer in Valencia, Spain.

 

The gross margin was 61.6 (93.8) percent. EBITDA was EUR -50 (546) thousand or -2.7 (32.2) percent of revenue. During the comparison period Optomed was granted a loan waiver in the amount of EUR 841 thousand treated as other operating income that had a corresponding positive effect on both gross margin and EBITDA. Gross margin adjusted for grants and other operating income was 61.9 (44.2) percent.

 

 

 

 

 

 

 

January-September 2023

 

In January-September 2023, the Devices segment revenue decreased by 3.3 percent to EUR 3,986 (4,122) thousand.

 

The gross margin decreased to 59.1 percent from 69.7 percent and gross margin adjusted for grants and other operating income was 59.1 (48.4) percent. The improved gross margin was driven especially by the improved margins of the global distributor sales.

 

EBITDA was EUR -693 (-417) thousand or -17.4 (-10.1) percent of revenue. The lower profitability was due to the previously mentioned extraordinary item of the Q3-2022 boosting the gross margin and, therefore, EBITDA of the comparison period.

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

Q3/2023

Q3/2022

Change, %

Q1-Q3/2023

Q1-Q3/2022

Change, %

2022

Revenue

2,393

2,003

19.4%

7,454

6,525

14.2%

9,263

Gross profit *

1,718

1,374

25.0%

5,447

4,430

22.9%

6,330

Gross margin % *

71.8%

68.6%

 

73.1%

67.9%

 

68.3%

EBITDA

636

475

34.1%

2,004

1,373

46.0%

2,079

EBITDA margin *, %

26.6%

23.7%

 

26.9%

21.0%

 

22.4%

Operating result (EBIT)

448

310

44.5%

1,456

890

63.7%

1,431

Operating margin (EBIT) *, %

18.7%

15.5%

 

19.5%

13.6%

 

15.4%

 

*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
 

 

July – September 2023

 

In July-September 2023, the Software segment revenue increased by 19.4 percent to EUR 2,393 (2,003) thousand as the healthcare solutions business continued to grow.

 

The profitability increased driven by the healthcare solution sales Gross margin increased and was 71.8 (68.6) percent. EBITDA was EUR 636 (475) thousand or 26.6 (23.7) percent of revenue.

 

 

 

January – September 2023

 

In January-September 2023, the Software segment revenue increased by 14.2 percent to EUR 7,454 (6,525) thousand.

 

Gross margin increased and it was 73.1 (67.9) percent. EBITDA was EUR 2,004 (1,373) thousand or 26.9 (21.0) percent of revenue. The increased profitability was driven by improved performance of the healthcare solution sales.

 

Group-wide expenses

 

Group-wide expenses relate to functions supporting the entire group such as treasury, group accounting, marketing, legal, HR, and IT.

 

July – September 2023

 

Group-wide operating expenses amounted to EUR 635 (875) thousand.

 

January – September 2023

 

Group-wide operating expenses amounted to EUR 2,335 (2,560) thousand.

 

Personnel

 

Number of personnel at the end of the reporting period.

 

 

9/2023

9/2022

Devices

47

54

Software

48

42

Group common

21

24

Total

116

120

 

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 2022 is available on the company website www.optomed.com/investors/.

 

Annual General Meeting

 

The Annual General Meeting held on 10 May 2023 adopted the financial statements for the financial period ended on 31 December 2022 and discharged the members of the Board of Directors and the CEO from liability for the financial period ended on 31 December 2022. The Annual General Meeting decided to reject the remuneration report for governing bodies. The decision made is advisory.

 

The Annual General Meeting resolved in accordance with the proposal of the Board of Directors that no dividend will be paid for the year 2022.

 

The number of members of the Board of Directors was confirmed as six. Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam were re-elected as members of the Board and Catherine Calarco and Ty Lee were elected as new members 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 300 is paid to the Chairpersons and EUR 200 to members of the Committees for each 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 Annual General Meeting decided to re-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 Heidi Hyry acts as the auditor with principal responsibility. Auditor’s remuneration will be paid in accordance with an invoice approved by the Company.

 

The Annual General Meeting approved the authorization for the Board of Directors to repurchase Optomed’s own shares and to accept them as pledge. Altogether no more than 1,654,135 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 Annual General Meeting authorized the Board of Directors to decide on the issuance of shares 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 1,654,135. 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.

 

The Annual General Meeting decided to amend the Articles of Association so that the minimum number of the members of the Board of Directors was reduced from five members to four.

 

 

 

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)
  • Catherine Calarco
  • Anna Tenstam

Remuneration Committee:

  • Seppo Mäkinen (Chairman)
  • Catherine Calarco
  • Ty Lee

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 18,130,397 shares and the Company held 353,973 shares in the treasury which approximately corresponds to 2.1 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/.

Directed share issue

 

Optomed completed a directed share issue consisting of 1,589,042 shares and collected gross proceeds of approximately EUR 4.3 million in September 2023. The main purposes of the Share Issue are to strengthen the Company’s balance sheet and to ensure sufficient financing for the implementation of the Company’s growth strategy especially in the US diabetic retinopathy screening market. The investors include qualified and institutional investors. The subscription price was EUR 2.70 per Share, a discount of approximately 9.09 per cent compared to the representing the last 5-day volume-weighted average trading price (“VWAP”) (EUR 2.97) of the Share up to and including 20 September 2023. The subscription price represents a discount of approximately 8.78 per cent to the closing price of the Company’s share on 20 September 2023. The subscription price will be credited in full to the Company’s reserve for invested unrestricted equity. The new shares were registered in the Finnish Trade Register and trading in the new shares together with the existing shares commenced on Nasdaq Helsinki Ltd on 25 September 2023.

 

Risks and uncertainties

 

The key risks and uncertainties are described in the company’s Annual Report 2022 which was published on 2 March 2023. The complete report is available at https://www.optomed.com/investors/. Following risk has been added to the risk position:

 

Public Procurement

Optomed’s Software segment provides development services also to a Finnish governmental agency under a contract the term of which is ending in the beginning of July 2024. The new contract with the agency is subject to a public procurement process. There is a risk that the Company fails to win the procurement process and the new contract. In case the Company fails to win the new contract, the impact on 2024 revenue is expected to be approximately EUR 1 million.

 

Audit review

 

This financial report has not been audited by the company's auditors.

 

Financial reporting in 2024

 

  • 15 February 2024      Financial Statement Bulletin for 1 January – 31 December 2023
  • 7 May 2024                Interim Report for 1 January – 31 March 2024
  • 8 August 2024            Half-Year Financial Report for 1 January – 30 June 2024
  • 7 November 2024      Interim Report for 1 January – 30 September 2024

For more information, contact

 

Sakari Knuutti, CFO

Tel: +358 (0)50 562 4077

E-mail: sakari.knuutti@optomed.com 

 

Juho Himberg, CEO

Tel: +358 (0)40 555 1050

E-mail:  juho.himberg@optomed.com 

 

About Optomed

 

Optomed is a Finnish medical technology company and one of the leading providers of handheld fundus cameras. Optomed combines handheld fundus cameras with software and artificial intelligence with the aim to transform the diagnostic process of various 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.

www.optomed.com

 

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 Performance Measures

Definition

Gross profit

Revenue + Other operating income – Materials and services expenses

Gross margin, %

Gross profit / Revenue

EBITDA

Operating result before depreciation, amortization and impairment losses

EBITDA margin, %

EBITDA / Revenue

Operating result

Profit/loss after depreciation, amortization and impairment losses

Operating margin, %

Operating result / Revenue

Adjusted operating result

Operating result excluding items affecting comparability

Adjusted operating margin, %

Adjusted operating result / Revenue

Adjusted EBITDA

EBITDA excluding items affecting comparability

Adjusted EBITDA margin, %

Adjusted EBITDA / Revenue

Items affecting comparability

Material items 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 / EBITDA (LTM), times

Net Debt /  EBITDA (for the last twelve months, LTM)

Net Debt / Adjusted EBITDA (LTM), times

Net Debt / Adjusted EBITDA (for the last twelve months, LTM)

Earnings per share

Net result / Weighted average 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 thousand  of Euro

Q3/2023

Q3/2022

Q1-Q3/2023

Q1-Q3/2022

2022

Revenue

4,218

3,700

11,440

10,648

14,660

Other operating income

-6

842

28

879

857

Material and services

-1,371

-1,576

-3,665

-4,221

-5,449

Gross profit

2,841

2,967

7,803

7,305

10,069

Operating result (EBIT)

-603

-1,411

-2,655

-4,227

-5,097

Items affecting comparability

 

 

 

 

 

Specific credit loss percent change from 30 to 50 %

311

0

311

0

0

Adjusted EBIT

-291

-1,411

-2,343

-4,227

-5,097

Depreciation, amortization and impairment losses

554

-1,557

1,631

2,622

3,145

Adjusted EBITDA

263

145

-713

-1,604

-1,952

 

Consolidated income statement

 

In thousands of euro

Q3/2023

Q3/2022

Q1-Q3/2023

Q1-Q3/2022

 2022

Revenue

4,218

3,700

11,440

10,648

14,660

Other operating income

-6

842

28

879

857

Materials and services

-1,371

-1,576

-3,665

-4,221

-5,449

Employee benefit expenses

-1,876

-2,083

-6,258

-6,449

-8,827

Depreciation, amortization and Impairment losses

-554

-1,557

-1,631

-2,622

-3,145

Other operating expenses

-1,013

-739

-2,569

-2,460

-3,193

Operating result

-603

-1,411

-2,655

-4,227

-5,097

 

 

 

 

 

 

Finance income

317

145

423

563

569

Finance expenses

-173

-130

-738

-471

-1,024

Net finance expenses

144

15

-315

92

-454

 

 

 

 

 

 

Profit (loss) before income taxes

-459

-1,397

-2,970

-4,135

-5,551

 

 

 

 

 

 

Income tax expense

20

20

59

59

79

 

 

 

 

 

 

Loss for the period

-439

-1,377

-2,911

-4,075

-5,472

 

 

 

 

 

 

Loss for the period attributable to

 

 

 

 

 

Owners of the parent company

-439

-1,377

-2,911

-4,075

-5,472

Loss per share attributable to owners of
the parent company

Weighted average number of shares

16,114,040

14,180,928

16,114,040

14,180,928

14,640,697

Basic loss per share (euro)

-0.03

-0.10

-0.18

-0.29

-0.37

 

 

 


Consolidated condensed comprehensive income statement

 

In thousands of euro

Q3/2023

Q3/2022

Q1-Q3/2023

Q1-Q3/2022

2022

Loss for the period

-439

-1,377

-2,911

-4,075

-5,472

Other comprehensive income

 

 

 

 

 

Foreign currency translation difference

-133

-21

111

-141

139

Other comprehensive income, net of tax

-133

-21

111

-141

139

Total comprehensive loss attributable to Owners of the parent company

-573

-1,398

-2,800

-4,216

-5,333

 

Consolidated balance sheet

 

In thousands of euro

September 30, 2023

September 30, 2022

Dec 31, 2022

ASSETS

 

 

 

Non-current assets

 

 

 

Goodwill

 4,256

 4,256

 4,256

Development costs

 7,493

 6,287

 6,562

Customer relationships

 998

 1,220

 1,164

Technology

 458

 560

 534

Other intangible assets

 387

 360

 379

Total intangible assets

 13,592

 12,683

 12,895

Tangible assets

 747

 932

 852

Right-of-use assets

 1,069

 920

 1,448

Deferred tax assets

 17

 15

 15

Total non-current assets

 15,425

 14,549

 15,210

Current assets

 

 

 

Inventories

 2,793

2,833

 2,998

Trade and other receivables

3,697

4,782

4,568

Cash and cash equivalents

 9,565

 5,668

 8,524

Total current assets

 16,054

 13,283

 16,090

 

 

 

 

Total assets

 31,479

 27,832

 31,300

 

 

 

 

In thousands of euro

September 30, 2023

September 30, 2022

Dec 31, 2022

EQUITY

 

 

 

Share capital

 80

 80

 80

Share premium

 504

 504

 504

Reserve for invested non-restricted equity

 50,936

 43,137

 46,896

Translation differences

162

-228

51

Retained earnings

-27,085

-21,803

-21,717

Profit (loss) for the financial year

-2,911

-4,075

-5,472

Total equity

 21,686

 17,613

 20,342

LIABILITIES

 

 

 

Non-current liabilities

 

 

 

Borrowings from financial institutions

 1,851

 3,579

 3,380

Government loans

 837

 1,030

 906

Lease liabilities

 595

 538

 1,058

Deferred tax liabilities

 329

 406

 387

Total Non-current liabilities

 3,613

 5,553

 5,731

 

 

 

 

Current liabilities

 

 

 

Borrowings from financial institutions

 1,794

 596

 794

Government loans

 193

 193

 193

Lease liabilities

 505

 400

 412

Trade and other payables

3,687

3,477

3,828

Total current liabilities

 6,180

 4,666

 5,227

 

 

 

 

Total liabilities

 9,793

 10,218

 10,957

 

 

 

 

Total equity and liabilities

 31,479

 27,832

 31,300

 

Consolidated statement of changes in shareholders’ equity

 

Equity attributable to owners of the parent company

 

In thousands of euro

Share capital

Share premium

Reserve for invested non-restricted equity

Translation differences

Retained earnings

Total

 

 

 

 

 

 

 

Balance at January 1, 2023

80

504

46,896

51

-27,189

20,342

Comprehensive income

 

 

 

 

 

 

Loss for the period

 

 

 

 

-2,911

-2,911

Other comprehensive income

 

 

 

 

 

 

Translation differences

 

 

 

111

 

111

Total comprehensive income for the period

 

 

 

111

-2,911

-2,800

Share issue

 

 

 4,023

 

 

4,023

Share options

 

 

16

 

105

121

Total transactions with owners of the company

 

 

4,039

 

105

4,144

 

 

 

 

 

 

 

Balance at September 30, 2023

80

504

50,936

162

-29,995

 21,686

 

Equity attributable to owners of the parent company

 

In thousands of euro

Share capital

Share premium

Reserve for invested non-restricted equity

Translation differences

Retained earnings

Total

 

 

 

 

 

 

 

Balance at January 1, 2022

80

504

38,526

-88

-21,970

17,052

Comprehensive income

 

 

 

 

 

 

Loss for the period

 

 

 

 

-4,075

-4,075

Other comprehensive income

 

 

 

 

 

 

Translation differences

 

 

 

-141

 

-141

Total comprehensive income for the period

 

 

 

-141

-4,075

-4,216

Share issue

 

 

4,611

 

 

4,611

Share options

 

 

 

 

167

167

Total transactions with owners of the company

 

 

4,611

 

167

4,778

Other adjustments

 

 

 

 

 

0

Balance at September 30, 2022

80

504

43,137

-228

-25,878

17,613

 

Equity attributable to owners of the parent company

 

In thousands of euro

Share capital

Share premium

Reserve for invested non-restricted equity

Translation differences

Retained earnings

Total

 

 

 

 

 

 

 

Balance at January 1, 2022

80

504

38,526

-88

-21,970

17,052

Comprehensive income

 

 

 

 

 

 

Loss for the period

 

 

 

 

-5,472

-5,472

Other comprehensive income

 

 

 

 

 

 

Translation differences

 

 

 

139

 

139

Total comprehensive income for the period

 

 

 

139

-5,472

-5,333

Share issue

 

 

 8,371

 

 

8,371

Share options

 

 

 

 

253

253

Total transactions with owners of the company

 

 

8,371

 

253

8,624

 

 

 

 

 

 

 

Balance at December 31, 2022

80

504

46,896

51

-27,189

20,342

 

 

 

 

 

Consolidated cash flow statement

 

In thousands of euro

Q3/2023

Q3/2022

Q1-Q3/2023

Q1-Q3/2022

2022

Cash flows from operating activities

 

 

 

 

 

Loss for the financial year

-439

-1,377

-2,911

-4,075

-5,472

Adjustments:

 

 

 

 

 

Depreciation, amortization and impairment

losses

554

1,557

1,631

2,622

3,145

Finance income and finance expenses

-79

37

423

0

618

Other adjustments

366

-782

311

-752

-770

Cash flows before change in net working capital

402

-565

-546

-2,204

-2,479

Change in net working capital:

 

 

 

 

 

Change in trade and other receivables

(increase (-) / decrease (+))

611

496

597

64

204

Change in inventories

(increase (-) / decrease (+))

187

345

173

159

-68

Change in trade and other payables

(increase (+) / decrease (-))

 

-334

-725

-175

20

172

Cash flows before finance items

866

-449

50

-1,962

-2,171

Interest paid

-76

-38

-128

-60

-76

Other finance expenses paid

-23

-17

-42

-72

-123

Net cash from operating activities (A)

767

-504

-120

-2,093

-2,370

Cash flows from investing activities

 

 

 

 

 

Capitalization of development expenses

-549

-449

-1,672

-1,729

-2,249

Acquisition of tangible assets

-67

-349

-156

-742

-780

Net cash used in investing activities (B)

-615

-797

-1,828

-2,471

-3,029

Cash flows from financing activities

 

 

 

 

 

Proceeds from share subscriptions

4,294

7

4,310

4,952

9,012

Share issue transaction costs

-318

0

-318

-382

-682

Repayment of loans and borrowings

-132

-73

-598

-880

-912

Repayment of lease liabilities

-123

-106

-370

-310

-415

Net cash from financing activities (C)

3,721

-172

3,024

3,380

7,003

Net cash from (used in) operating, investing and financing activities (A+B+C)

3,872

-1,473

1,077

-1,184

1,605

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

5,691

7,079

8,524

6,804

6,804

Effect of movements in exchange rate on cash held

2

63

-36

48

115

Cash and cash equivalents at end of period

9,565

5,668

9,565

5,668

8,524

 

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 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, 2023.

 

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 2022. These Interim financial statements do not include all of the information required by IAS 34: 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.

 

All presented figures have been rounded so the sum of the individual figures may differ from the presented total figure.

Financial ratios have been calculated using exact figures.

 

This report has been authorized for issue by the company`s board of directors.

 

Reportable segments

 

Q3/2023

 

In thousands of euro

Devices

Software

Group

Admin

Total

External revenue

 1,825

 2,393

0

 4,218

Net operating expenses

-701

-675

0

-1,376

Margin

1,124

1,718

0

 2,841

Depreciation and amortization

-363

-189

-3

-554

Other expenses

-1,174

-1,081

-635

-2,890

Operating result

-413

448

-637

-603

Finance items

0

0

144

144

Loss before tax expense

-413

448

-494

-459

 

Q3/2022

 

In thousands of euro

Devices

Software

Group

Admin

Total

External revenue

 1,697

 2,003

0

 3,700

Net operating expenses

-105

-629

0

-734

Margin

1,592

1,374

0

 2,967

Depreciation and amortization

-1,390

-165

-2

-1,557

Other expenses

-1,046

-900

-875

-2,821

Operating result

-844

310

-877

-1,411

Finance items

0

0

15

15

Loss before tax expense

-844

310

-863

-1,397

 

Q1-Q3/2023

 

In thousands of euro

Devices

Software

Group

Admin

Total

External revenue

 3,986

 7,454

0

 11,440

Net operating expenses

-1,630

-2,007

0

-3,637

Margin

2,356

5,447

0

 7,803

Depreciation and amortization

-1,076

-548

-7

-1,631

Other expenses

-3,050

-3,443

-2,335

-8,827

Operating result

-1,769

1,456

-2,342

-2,655

Finance items

0

0

-315

-315

Loss before tax expense

-1,769

1,456

-2,657

-2,970

Q1-Q3/2022

 

In thousands of euro

Devices

Software

Group

Admin

Total

 

 

 

 

 

External revenue

 4,122

 6,525

0

 10,648

Net operating expenses

-1,248

-2,095

0

-3,342

Margin

2,875

4,430

0

 7,305

Depreciation and amortization

-2,133

-483

-6

-2,622

Other expenses

-3,292

-3,057

-2,560

-8,909

Operating result

-2,550

890

-2,566

-4,227

Finance items

0

0

92

92

Loss before tax expense

-2,550

890

-2,474

-4,135

 

 

2022

 

In thousands of euro

Devices

Software

Group

Admin

Total

 

 

 

 

 

External revenue

 5,398

 9,263

0

 14,660

Net operating expenses

-1,659

-2,933

0

-4,592

Margin

3,738

6,330

0

 10,069

Depreciation and amortization

-2,489

-649

-8

-3,145

Other expenses

-4,408

-4,251

-3,361

-12,020

Operating result

-3,159

1,431

-3,368

-5,097

Finance items

0

0

-454

-454

Loss before tax expense

-3,159

1,431

-3,823

-5,551

 

 

Other operating income

 

In thousands of euro

Q3/2023

Q3/2022

Q1-Q3/2023

Q1-Q3/2022

2022

Other operating income

-6

842

28

879

857

Total

 

-6

842

28

879

857

 

 

 

 

 

 

 

Other operating expenses

 

Other operating expenses

Q3/2023

Q3/2022

Q1-Q3/2023

Q1-Q3/2022

2022

Sales and marketing

-111

-200

-450

-578

-784

Research and development

-54

-36

-186

-298

-361

General and administration

-849

-503

-1,933

-1,584

-2,049

Total operating expenses

-1,013

-739

-2,569

-2,460

-3,193


Other operating expenses also comprise changes in expected credit losses and realized credit losses.

 

 

Exposure to credit risk and loss allowance

 

Optomed considers it has heightened risk regarding Chinese customer's trade receivables. The credit risk concentration has been formed and is associated with an increased credit loss risk due to overdue trade receivables. Specific loss allowance weighted average loss rate% increased from 30% to 50%.

 

In thousands of euro

Gross carrying amount

 

Weighted av.

loss rate%

Loss

allowance

At September 30, 2023

 

 

 

Current (not past due)

                   1,647  

0.5%

                   8  

Past due

 

 

 

1-30 days

                        38  

1.5%

                   1  

31-60 days

                        83  

4%

                   3  

61-90 days

                      125  

9%

                 11  

More than 90 days past due

                      306  

12%

                 37  

Specific loss allowance

                   1,556  

50%

               778  

Total

                   3,756  

 

               838  

 

 

In thousands of euro

Gross carrying amount

 

Weighted av.

loss rate%

Loss

allowance

At September 30, 2022

 

 

 

Current (not past due)

                1,572  

0.5%

8

Past due

 

 

 

1-30 days

                   144  

1.5%

2

31-60 days

                   135  

4%

5

61-90 days

                     12  

9%

1

More than 90 days past due

                     37  

12%

4

Specific loss allowance

                2,211  

30%

663

Total

                4,112  

 

 684

 

In thousands of euro

Gross carrying amount

 

Weighted av.

loss rate%

Loss

allowance

At December 31, 2022

 

 

 

Current (not past due)

                   1,664  

0.5%

                   8  

Past due

 

 

 

1-30 days

                      161  

1.5%

                   2  

31-60 days

                          7  

4%

                   0  

61-90 days

                        29  

9%

                   3  

More than 90 days past due

                        12  

12%

                   1  

Specific loss allowance

                   1,962  

30%

               589  

Total

                   3,836  

 

               604  

 

Financial liabilities

 

In thousands of euro 

30.9.2023 

30.9.2022 

31.12.2022 

Non-current financial liabilities 

 

 

 

Borrowings from financial institutions

1,851

3,579

3,380

Government loans

837

1,030

906

Lease liabilities

595

538

1,058

Total 

3,284

5,147

5,344

 

 

 

 

 

 

Current financial liabilities 

 

 

 

Borrowings from financial institutions 

1,794

596

794

Government loans 

193

193

193

Lease liabilities 

505

400

412

Trade payables 

990

1,004

869

Total 

3,482

2,193

2,268

  

 

 

 

Total financial liabilities 

6,766

7,340

7,612

 

Fair values - financial liabilities measured at amortized cost.

Optomed considers that the carrying amounts of the financial liabilities measured at amortized cost substantially equal to their fair values.

 

Events after the review period

 

No material events after the reporting period. 

 

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