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Beskrivning
| Land | Finland |
|---|---|
| Lista | Small Cap Helsinki |
| Sektor | Hälsovård |
| Industri | Medicinteknik |
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.
- 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, Q3/202 Q3/202 Change, Q1 Q1 Change, 2022
thousand 3 2 % -Q3/202 -Q3/202 %
3 2
Revenue 4,218 3,700 14.0% 11,440 10,648 7.4% 14,660
Gross 2,841 2,967 -4.2% 7,803 7,305 6.8% 10,069
profit *
Gross 67.4% 80.2% 68.2% 68.6% 68.7%
margin % *
EBITDA -48 145 -133.2% -1,024 -1,604 36.2% -1,952
EBITDA -1.1% 3.9% -8.9% -15.1% -13.3%
margin *, %
Adjusted 263 145 80.9% -713 -1,604 55.6% -1,952
EBITDA *
Adjusted 6.2% 3.9% -6.2% -15.1% -13.3%
EBITDA
margin
*, %
Operating -603 -1,411 57.3% -2,655 -4,227 37.2% -5,097
result
(EBIT)
Operating -14.3% -38.1% -23.2% -39.7% -34.8%
margin
(EBIT) *, %
Adjusted -291 -1,411 79.3% -2,343 -4,227 44.6% -5,097
operating
result
(EBIT) *
Adjusted -6.9% -38.1% -20.5% -39.7% -34.8%
operating
margin
(EBIT
margin)
*, %
Net profit/ -439 -1,377 68.1% -2,911 -4,075 28.6% -5,472
loss
Earnings -0.03 -0.10 71.9% -0.18 -0.29 37.1% -0.37
per share
Cash flow 767 -504 252.2% -120 -2,093 94.3% -2,370
from
operating
activities
Net Debt -4,890 -271 1,707.5% -4,890 -271 1,707.5 -3,251
%
Net debt/ 3.6 0.1 3.6 0.1 1.7
EBITDA
(LTM)
*
Net debt/ 4.6 0.1 4.6 0.1 1.7
Adjusted
EBITDA
(LTM) *
Equity 68.9% 63.3% 68.9% 63.3% 65.0%
ratio *
R&D 297 251 18.0% 942 850 10.9% 1,198
expenses
personnel
R&D 192 124 55.2% 505 480 5.4% 661
expenses
other
costs
Total R&D 489 375 30.3% 1,447 1,329 8.9% 1,859
expenses
*) 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 Q3/202 Q3/202 Change, Q1 Q1-Q3/2022 Change, % 2022
3 2 % -Q3/20
23
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 -413 -844 51.1% -1,769 -2,550 30.6% -3,159
result (EBIT)
Operating -22.6% -49.7% -44.4% -61.9% -58.5%
margin (EBIT)
*, %
*) 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 Q3/202 Q3/202 Change, Q1 Q1-Q3/2022 Change, % 2022
3 2 % -Q3/20
23
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 448 310 44.5% 1,456 890 63.7% 1,431
result (EBIT)
Operating 18.7% 15.5% 19.5% 13.6% 15.4%
margin (EBIT)
*, %
*) 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
- 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 Definition
Performance
Measures
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 Operating result excluding items affecting comparability
result
Adjusted operating Adjusted operating result / Revenue
margin, %
Adjusted EBITDA EBITDA excluding items affecting comparability
Adjusted EBITDA Adjusted EBITDA / Revenue
margin, %
Items affecting Material items outside ordinary course of business
comparability 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 Net Debt / EBITDA (for the last twelve months, LTM)
(LTM), times
Net Debt / Adjusted Net Debt / Adjusted EBITDA (for the last twelve months,
EBITDA (LTM), times 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 311 0 311 0 0
percent change from 30 to
50 %
Adjusted EBIT -291 -1,411 -2,343 -4,227 -5,097
Depreciation, 554 -1,557 1,631 2,622 3,145
amortization and
impairment losses
Adjusted EBITDA 263 145 -713 -1,604 -1,952
Consolidated income statement
In thousands Q3/2023 Q3/2022 Q1 Q1-Q3/2022 2022
of euro -Q3/202
3
Revenue 4,218 3,700 11,440 10,648 14,660
Other -6 842 28 879 857
operating
income
Materials and -1,371 -1,576 -3,665 -4,221 -5,449
services
Employee -1,876 -2,083 -6,258 -6,449 -8,827
benefit
expenses
Depreciation, -554 -1,557 -1,631 -2,622 -3,145
amortization
and
Impairment
losses
Other -1,013 -739 -2,569 -2,460 -3,193
operating
expenses
Operating -603 -1,411 -2,655 -4,227 -5,097
result
Finance 317 145 423 563 569
income
Finance -173 -130 -738 -471 -1,024
expenses
Net finance 144 15 -315 92 -454
expenses
Profit (loss) -459 -1,397 -2,970 -4,135 -5,551
before
income taxes
Income tax 20 20 59 59 79
expense
Loss for the -439 -1,377 -2,911 -4,075 -5,472
period
Loss for the
period
attributable
to
Owners of the -439 -1,377 -2,911 -4,075 -5,472
parent
company
Loss per
share
attributable
to owners
of
the parent
company
Weighted 16,114,040 14,180,928 16,114,040 14,180,928 14,640,697
average
number
of shares
Basic loss -0.03 -0.10 -0.18 -0.29 -0.37
per share
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro Q3/20 Q3/202 Q1 Q1-Q3/2022 2022
23 2 -Q3/20
23
Loss for the period -439 -1,377 -2,911 -4,075 -5,472
Other comprehensive income
Foreign currency translation -133 -21 111 -141 139
difference
Other comprehensive income, net of -133 -21 111 -141 139
tax
Total comprehensive loss -573 -1,398 -2,800 -4,216 -5,333
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands September 30, 2023 September 30, 2022 Dec 31, 2022
of euro
ASSETS
Non-current
assets
Goodwill 4,256 4,256 4,256
Development 7,493 6,287 6,562
costs
Customer 998 1,220 1,164
relationships
Technology 458 560 534
Other 387 360 379
intangible
assets
Total 13,592 12,683 12,895
intangible
assets
Tangible 747 932 852
assets
Right-of-use 1,069 920 1,448
assets
Deferred tax 17 15 15
assets
Total non 15,425 14,549 15,210
-current
assets
Current
assets
Inventories 2,793 2,833 2,998
Trade and 3,697 4,782 4,568
other
receivables
Cash and cash 9,565 5,668 8,524
equivalents
Total current 16,054 13,283 16,090
assets
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 50,936 43,137 46,896
non-restricted equity
Translation 162 -228 51
differences
Retained earnings -27,085 -21,803 -21,717
Profit (loss) for the -2,911 -4,075 -5,472
financial year
Total equity 21,686 17,613 20,342
LIABILITIES
Non-current
liabilities
Borrowings from 1,851 3,579 3,380
financial
institutions
Government loans 837 1,030 906
Lease liabilities 595 538 1,058
Deferred tax 329 406 387
liabilities
Total Non-current 3,613 5,553 5,731
liabilities
Current liabilities
Borrowings from 1,794 596 794
financial
institutions
Government loans 193 193 193
Lease liabilities 505 400 412
Trade and other 3,687 3,477 3,828
payables
Total current 6,180 4,666 5,227
liabilities
Total liabilities 9,793 10,218 10,957
Total equity and 31,479 27,832 31,300
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 |46,896 |51 |-27,189 |20,342 |
|January 1, | | | | | | |
|2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Loss for the | | | | |-2,911 |-2,911 |
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation | | | |111 | |111 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | | |111 |-2,911 |-2,800 |
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue | | | 4,023 | | |4,023 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options| | |16 | |105 |121 |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total | | |4,039 | |105 |4,144 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at |80 |504 |50,936 |162 |-29,995 | 21,686|
|September | | | | | | |
|30, 2023 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+-------+
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 |38,526 |-88 |-21,970 |17,052|
|January 1, | | | | | | |
|2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Loss for the | | | | |-4,075 |-4,075|
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Translation | | | |-141 | |-141 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | | |-141 |-4,075 |-4,216|
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share issue | | |4,611 | | |4,611 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share options| | | | |167 |167 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | |4,611 | |167 |4,778 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | |0 |
|adjustments | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |43,137 |-228 |-25,878 |17,613|
|September | | | | | | |
|30, 2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
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 |38,526 |-88 |-21,970 |17,052|
|January 1, | | | | | | |
|2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Loss for the | | | | |-5,472 |-5,472|
|period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Other | | | | | | |
|comprehensive| | | | | | |
|income | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Translation | | | |139 | |139 |
|differences | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | | |139 |-5,472 |-5,333|
|comprehensive| | | | | | |
|income for | | | | | | |
|the period | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share issue | | | 8,371 | | |8,371 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Share options| | | | |253 |253 |
+-------------+-------+-------+-----------+-----------+--------+------+
|Total | | |8,371 | |253 |8,624 |
|transactions | | | | | | |
|with owners | | | | | | |
|of the | | | | | | |
|company | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
| | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
|Balance at |80 |504 |46,896 |51 |-27,189 |20,342|
|December | | | | | | |
|31, 2022 | | | | | | |
+-------------+-------+-------+-----------+-----------+--------+------+
Consolidated cash flow statement
In thousands of euro Q3/202 Q3/202 Q1 Q1 2022
3 2 -Q3/20 -Q3/20
23 22
Cash flows from operating activities
Loss for the financial year -439 -1,377 -2,911 -4,075 -5,472
Adjustments:
Depreciation, amortization and 554 1,557 1,631 2,622 3,145
impairment
losses
Finance income and finance expenses -79 37 423 0 618
Other adjustments 366 -782 311 -752 -770
Cash flows before change in net 402 -565 -546 -2,204 -2,479
working capital
Change in net working capital:
Change in trade and other receivables 611 496 597 64 204
(increase (-) / decrease (+))
Change in inventories 187 345 173 159 -68
(increase (-) / decrease (+))
Change in trade and other payables -334 -725 -175 20 172
(increase (+) / decrease (-))
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 -615 -797 -1,828 -2,471 -3,029
(B)
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, 3,872 -1,473 1,077 -1,184 1,605
investing and financing activities
(A+B+C)
Cash and cash equivalents at beginning 5,691 7,079 8,524 6,804 6,804
of period
Effect of movements in exchange rate 2 63 -36 48 115
on cash held
Cash and cash equivalents at end of 9,565 5,668 9,565 5,668 8,524
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 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 Total
Admin
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 Total
Admin
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 Total
Admin
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 Total
Admin
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 Total
Admin
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 Gross carrying amount Weighted av. Loss
of euro
loss rate% allowance
At September
30, 2023
Current (not 0.5% 8
past due) 1,647
Past due
1-30 days 1.5% 1
38
31-60 days 4% 3
83
61-90 days 9% 11
125
More than 90 12% 37
days past due 306
Specific loss 50% 778
allowance 1,556
Total 838
3,756
In thousands of euro Gross carrying amount Weighted av. Loss
loss rate% 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 Gross carrying amount Weighted av. Loss
of euro
loss rate% allowance
At December
31, 2022
Current (not 0.5% 8
past due) 1,664
Past due
1-30 days 1.5% 2
161
31-60 days 4% 0
7
61-90 days 9% 3
29
More than 90 12% 1
days past due 12
Specific loss 30% 589
allowance 1,962
Total 604
3,836
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.