A revaluation of its stake in SkinBiotherapeutics following the skincare subsidiary's flotation in April catapulted OptiBiotix Health plc (LON:OPTI) into the black last year.
The income statement included an adjustment of £4.1mln for the change in value of the investment in SkinBioTherapeutics PLC (LON:SBTX) following the listing – the value of the stake has since increased further – resulting in a profit before tax in the year to November 30, 2018, of £1.69mln, compared to a loss the previous year of £1.52mln.
READ: OptiBiotix Health inks US deal for cholesterol breakthrough
OptiBiotix noted that the adjustment in the value of the stake in SkinBiotherapeutics was paper-based, not cash-based, and as such is not taxable.
“We have been pleased with the progress of SkinBioTherapeutics PLC, which is making strong commercial progress and preparing for human studies, which if successful, should provide a substantive uplift in valuation,” said Stephen O'Hara, the chief executive officer of OptiBiotix.
The life sciences business, focused on tackling obesity, high cholesterol and diabetes, saw revenue ease to £191,073 from £288,119 but stressed that as the company makes the transition from the research stage to the commercial phase, it is developing a deal pipeline that it believes will develop into significant revenues over time.
Administrative expenses rose to £2.24mln from £1.77mln the previous year, resulting in an operating loss of £2.13mln, versus a loss the previous year of £1.52mln.
Theresa May to unveil a new anti-obesity strategy within weeks https://t.co/nQVRWICQQ6
— Jack Shakespeare (@JShakespearePA) May 20, 2018
"OptiBiotix has made significant progress in the last 12 months, which has seen a growing number of awards for our science and products and an increased deal flow. We anticipate both the rate and value of deal flow increasing as we develop new applications, take existing products into new territories, and leverage our technology platforms to develop new product opportunities,” O'Hara said.
“We are particularly excited by the interest from partners in developing our products into biopharmaceuticals and see this as an area of significant future development and potential value uplift,” he added.