Cambridge Nutritional Sciences plc (CNSL.L) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Omega Diagnostics Financial Results Presentation for the year ending 31st of March, 2020. [Operator Instructions] Given the company has nearly 600 investors following the Investor Meet company platform, who have been invited to today's presentation, the company will not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. These will be available via your Investor Meet company dashboard. Before we begin, we'd like to submit the following poll. And finally, I'd like to remind you that this presentation is being recorded. I'd now like to hand over to Colin King, group CEO; and Kieron Harbinson, group CFO of Omega Diagnostics.

Yes. Thanks, Mark. And, yes, good afternoon, everybody. First of all, I'd just like to thank everyone for taking the time out to join this first Investor Meet webinar. And I'd also like to thank everyone that's taken the time to submit questions. This is very much appreciated, and feedback is well received by the company. What we hope to highlight during this presentation is not only an excellent and perhaps unique opportunity with COVID testing, but that there is a core business at the start of a growth curve that goes well beyond COVID-19. In terms of presenting tonight is myself Colin; and Kieron Harbinson, the group Financial Director. And what we hope to -- sorry, I went too far. What we hope to cover this evening is basically an overview of our core business, year-end results, how we plan to deploy the funds that we receive from the placing, then sum up and answer any questions that we've already received or receive during this presentation. In terms of our core business, we're focused on 2 segments within the medical diagnostic industry and global health, where we currently have 2 specific target disease areas; CD4, which is a lateral flow test that is used in the management of HIV patients; and more recently, we've added in COVID-19 testing that we're focused on to cover lab, primary care and home use for both antigen as do you have COVID, and antibody testing, have you had COVID? In terms of food intolerance business, this is quite misunderstood. This is not an allergy test but is used for long-term chronic illness such as irritable bowel syndrome, and the test is used instead of a food elimination process, the test is designed to identify foods you're intolerant to, that can then be removed and replaced with alternate foods or supplements. Before I provide an overview of the antibody testing, what I thought would be worthwhile just taking a step back and maybe explain the overall strategy that Omega have with regards to COVID testing. When the pandemic hit us, there was a realization that the diagnostics would play a key part in the global recovery. We realized that we have both the skills and expertise to help with this recovery. We have the capabilities to cover all test environments. We've mentioned already lab, primary care and self-test. What we wanted to be involved in both antibody and antigen testing as we could then point our capacity that we build up to whatever the demand was, therefore, be more resilient as the market developed. We have a number of potential opportunities available to us and went through a selection process that was based on both the quality of the products and the market differentiating that these products would bring us. What I hope to highlight over the next few slides is both -- is the market differentiating that these -- the products that we select to bring to the market. In terms of antibody testing, this has a key part to play in the fight against the pandemic. And clearly, there's been some questions regarding antibody testing. And one of the key questions that is still outstanding is the science to prove if COVID-19 reacts in a similar way to previous viruses such as SARS, where if you have antibodies, you had immunity for a period of time. Clearly, if this is proven, the opportunity will be huge. However, even if it doesn't, it still has an important part to play whether it be for the prevalence studies at a national or regional level or the recent paper published by an influential group, Johns Hopkins University, suggested was to use antibody testing on a patient with symptoms test negative with an -- from an antigen test. It's one that's been widely published that antigen test could be missing up to 20% positive cases. That's probably due to the sample technique that's adopted in the current antigen testing method. So clearly, there's an opportunity there where if 20% of positive cases if you then adopted an antibody test to confirm that the patient that was negative that actually have antibodies would indicate that the person is actually positive or has been positive. As I said before, there are 3 settings that an antibody testing -- that the testing is performed: through a lab, primary care or self-testing. And there's 3 ways that the tests are performed. They're either done through a -- in the lab, fully automated or using an ELISA technique or through a point-of-care process. I believe that each segment has a key role to play in this global pandemic. If you take an automated lab test, so that's, for example, your Roche and your Abbott systems, they clearly have a use in the space, especially and predominantly in the hospital setting. However, when you move outside the hospital setting, they are less effective. And the reason for that is these tests require a blood draw. So you can imagine in the hospital it is very easy to get access to patients and phlebotomists to carry out blood draws. You go outside a hospital setting, it then becomes very difficult, especially in this current world where we're all discouraged from going anywhere near GP surgeries. That's really where our ELISA test comes in, and the -- in terms of our ability, one of the key features -- one of the reasons we chose Mologic was because of the ability to take -- have a fingerstick of blood and use that to send out to the home to collect samples and send back to the lab and then, obviously, you can then run the test within the lab. So key selling feature for the test. Where we stand today with that method is we're currently validating that. And our validation process should be complete in early August. It's been validated at Liverpool School of Tropical Medicine. And once that process has been complete, we'll obviously launch that and make that available in the marketplace. As I said, we see this as a key differentiator for the test. In terms of the test itself, the other advantages it has is that it is used in low, middle -- sorry, it's used in small labs, and those small labs are predominantly used in low, middle-income countries. So again, in those settings, the large automates aren't present, and ELISA test will be a test of choice. And so that's where we see our market differentiator with the test. And currently, as you know, the CE -- test has been CE marked, which received the first commercial sales in -- from Senegal. And we're currently evaluating -- the products are currently being evaluated in 18 countries, and we hope to make progress with those countries over the next month or so. The -- in terms of the -- obviously -- we've announced recently in terms of India, where we've received approval, and where we stand with that today is the -- we are free to sell, and we have shipped product to our Indian subsidiary, and we hope to realize sales in -- start first commercial sales in India towards the end of this month and early August. And in terms of just giving you a feel for -- I know some of the shareholders have asked for indication of selling price and margins. We -- at this stage, it's obviously, we're still trying to work out what that pricing will be in the marketplace. But I think it -- in terms of all the COVID testing, what I would suggest is that you use the finnCap research log, which is available on the finnCap website. And -- but to give you an indication or an indicative selling price, finnCap estimate a price per test of about GBP 1.50 at a 50% margin. In terms of the point-of-care lateral flow antibody test, this is a test that we are partnered with Mologic, and we're going to utilize their technology. And again, in terms of why did we choose Mologic? And again, the quality of their test and just like the ELISA, it's exceptional. It's been read as both ELISA and the lateral flow test, have been rigorously validated externally in the Liverpool School of Tropical Medicine and St George's Hospital. And that was one of the things that attracted to us, the way that they approached the study was that they really took some challenging samples that -- which is known to be cross-reactive, for example, previous SARS patients, HIV patients and autoimmune patients. And so the data that you see is exceptional when you look at it in terms of the level of potential cross-reactivity the test has. In terms of the point-of-care test, the other key differentiator that this test has is that it actually -- the antibodies, there's actually 3 antibodies in this, both IgA, IgG and IgM, and therefore, it picks up positive patients that are far earlier stage than most other tests. And so again, another key selling feature for us. In terms of the current status of this test, we have commenced technical transfer, and our aim is to complete the technical transfer, CE marking and commence product evaluations in August with first commercial sales expected late September, early October. So by the end of August, we'll have a product ready, commencing evaluations, and we would then expect that to come through late September, early October. Again, just in terms of feel for selling price based on finnCap's analysis, you're looking at a selling price of roundabout GBP 3.20 at a 50% margin. In terms of the margin, the -- no -- what -- as a company what we decided to be was we wanted to be socially responsible for us obviously returning our profit as well, and we feel a 50% margin is a fair price to set things up. In terms of the U.K. antibody self-testing, we obviously have achieved design freeze, and under the current process is, Abingdon are now going through verification and validation. And once that's complete, they will then look to gain regulatory approval, which would obviously CE mark and the approval from MHRA in terms of self-test. In terms of all other purpose, that mean we have started the early stages of technical transfer. And so we're transferring methods from Abingdon Health to Omega, and we aim to complete that transfer by the end of August and commence supply in September. Initially, we will aim to supply 100,000 tests per week, rising to 200,000 tests per week by the end of October, when we receive some of the equipment that we've just placed orders for. And again, in terms of selling price, finnCap's forecast for that is again somewhere roundabout GBP 1.50 at a 50% margin. Clearly, that pricing will be determined when we conclude the supply agreement with the government, terms of those contract and negotiations. They are ongoing and we hope to conclude these imminently over the next -- end of July, early August would be our expectation. Clearly, we're not in full control of that. We are being driven by the government. The -- I think we'll be -- I think, the other thing I'd just like to point out as part of that -- these discussions that we're having with the government, what we are -- again these questions that we have received, we are hopeful that within the contract, there will be a provision for us to supply other markets outside of the U.K. government and in terms of how that will likely work. So if you could imagine that, say, the government take up 75%, 80%, 90% of our capacity, then we would then be free to sell 25% or 20% or 10% of the remaining capacity to other interested parties. So that's currently something we're negotiating yet. It's not been finalized, but we're certainly appreciative for that as part of this contract negotiation. And the reason we're doing that is because we believe there will be strong interest in this test outside the U.K. due to the product performance, but also that we will also bring an app to record results as well, which is obviously of interest to others as well. So that's antibody testing, and hopefully I've given you a good feel that we've got great opportunities covering all the spots of antibody testing. In terms of antigen testing, the -- currently, the majority of testing is carried out by real-time PCR. And these tests, I've already mentioned about the accuracy, and the test themselves are actually quite accurate. And the challenge that we have is mainly around the sample. And as you probably know, you've got to get a swab. That swab goes down your -- the back of your throat, down your nose. It's pretty uncomfortable for patients. But more importantly, it actually introduces inconsistencies in the results. And so one of the things that interests us with Mologic was what they were developing was a different sampling technique. What they're using is saliva, and -- or they aim to use saliva. And again, we're confident in terms that use of saliva. So if you think of HIV test, which is obviously a virus and is antigen based, saliva as a sample type is commonly used. So again, confidence that there is an ability to bring that test to market. I think the other key features are it will be less expensive. PCR testing is -- it takes time and costly, whilst we'll get quicker results, and it will be less expensive to the payers. Again, if you're looking at finnCap's forecast, you're looking at somewhere roundabout GBP 5 per test and again at 50% margin. So that's what we're -- that's -- so the aim of the test and the key features of the test. The -- and in terms of the point-of-care test, it will be very similar, saliva based, but the key thing here is that, obviously, the ability to run at home or the workplace. So again, you could see where that would be very appropriate, for example, the airports or the same work places to run that test when it becomes available. In terms of where we currently are, so Mologic are making good progress with the development of the test and their target is to complete the development by August, which would then allow us to transfer the technology and CE mark the product by the end of September, which would then allow us to commence sales in the October, November timeframe. And that will be for the ELISA test initially. And then it's going to follow a similar format to the antibody test, where once that's completed, the focus will go on to the lateral flow test and -- which, again, if you look at the antibody test, was roundabout 2 months after the ELISA test. So in terms of timeframes you're looking at December, January. So perfect timing in terms of the new flu season coming into play. So that's really -- hopefully, again, a good overview of what we see in terms of our forward look in terms of antigen testing. And in terms of COVID, again, hopefully, you've got the feel that we've got the bases covered in terms of antibody and antigen testing. We're covering lab testing. We're covering primary care and home testing for, say, both antibody and antigen testing. So that's really -- our strategy here was to be well positioned in those areas. And as I said, in terms of the build, what was clearly built with the fundraise building capacity and then the idea is that we can flex that capacity wherever the demand comes, whether it be for antibody or antigen testing, the only thing within our capacity we've committed to date is to produce 100,000 going up to 200,000 as part of the consortium in terms of antibody testing. Moving on then, in terms of VISITECT CD4. The -- as I mentioned earlier, we offer this test. It's used to help manage HIV patients. I think we strongly believe that VISITECT CD4 advanced disease test is where we see the highest future demand. The reason for this is basically it's WHO, World Health Organization, driven. A number of years ago, they implemented a policy whereby if you test positive for HIV, you'll be -- you will get antiviral drugs. This policy was -- has been really effective in driving down the number of people dying of HIV every year. However, what they found recently is that progress has plateaued. And it's now plateaued. It's somewhere around about 1 million patients every year, unfortunately, still dying of HIV-related diseases. Clearly, that was a concern for WHO. They've done a lot of investigation into why that is. And what they found was that basically, patients with a CD4 count of lower than 200 were at a high risk of basically -- of dying. So what they've done is they've realized this in terms of -- and they've created a new strategy, it's called an advanced disease health initiative. And it's not just for CD4 test because what happens here is that when a patient does have a low CD4 count below 200, the likelihood is that patient will have other infections, for example, TB. And that is what's likely to kill them, and the antiviral drugs are no longer effective. So the strategy that they have is to test patients that are high risk, and if those patients' CD4 counts are below 200, they would then reflex and perform a number of tests, and TB, for example, being one of them. If they were positive for one of those diseases, they would then treat that infection and get the patient -- and make that disease -- remove that disease and then get the patient back on to antiviral drugs. And then obviously, hopefully, there's a positive outcome, and then you'll see a further reduction in those mortality rates that are currently, as I said, sitting at roundabout 1 million patients dying per annum. In terms of our test, the key benefits to our test is we are the only instrument-free point-of-care test available in the market today. It doesn't require any cold chain. And probably, it's -- because it's instrument free, it can actually get to more remote places as well. So again, it allows key -- care workers going into communities and being able to run these tests and be able to get to patients. So it's primarily designed at low, middle-income countries and -- where health care systems are not as well-developed as they are in the Western world. Again, what's encouraging for us in terms of CD4 is the largest donor for HIV care is the U.S. government's an organization called PEPFAR. And recently, they've gone out publicly and stated that in terms of CD4 test going forward, they will only procure instrument-free point-of-care tests. So again, a clear market for us that our test will be heavily adopted as we move forward. In terms of giving you a feel for the market size, we've also been in discussions with a lot of agencies. And basically, what the agencies have been informing us is to ensure that we've got capacity within the next 3 to 5 years to be able to produce somewhere between 4 million to 6 million tests per annum. So that's what we believe the market size in terms of -- in 3 to 5 years to be, somewhere between 4 million to 6 million. And in terms of selling price, it's $4 a test. And the margin is approximately 70%. So again, you can get a feel for -- currently, sales are virtually 0. So as I said, we're at the start of an exceptional growth opportunity here. In terms of our sales strategy, how are these tests going to be deployed? Basically, we have 3 avenues. All these tests will be funded by NGOs and World Health Organization-affiliated organizations. As I said, the World Health Organization had -- have created this new strategy, this advanced disease initiative. What they basically have tasked Unitaid and CHAI to implement this strategy. They have given them a $20 million fund to implement it over 18-month period. And over that 18-month period, the aim is that they get the test adopted in all low, middle-income countries. The -- and then in terms of CHAI and Unitaid's strategy here is what they're looking to do initially is to work in 4 or 5 countries possibly and basically use that as an early adopter, and work out the care plans and strategy and logistics of how this will be implemented. Once they have that solidified in those countries, they would then start to roll that through the remaining low, middle-income countries. And what's encouraging is the part of that fund, they're obviously placing these tests free of charge into countries, and they're working directly with the countries' health authorities to put these systems in place. What will happen at the back of that once that's established is that PEPFAR and the global fund will then come in behind and Unitaid and CHAI will provide long-term funding for the tests. And as I said earlier, in terms of PEPFAR's comment, they will only procure lateral flow tests. So again, you could see where our test will be the only test that will be adopted in the market. In addition to that, MSF, they've been a long-term advocate for CD4 test, and it was them that convinced us to develop the advanced disease test. We published earlier on this year or they published, sorry, earlier on this year, a multicenter study that was completed in DRC, Malawi and Zimbabwe, and that was exceptional. Results that came out were very positive. Basically, the outcome was promising test in decentralized settings, which is exactly what the test has been designed to do. And they will -- they are now planning to deploy our test in their MSF field sites in the countries that they're active in. We expect that to start late summer, early autumn. We had expected to start sooner than this, but because of COVID and the deployment of resources to deal with COVID, that's basically why we have the delay. Then finally, there's the UN agencies like UNICEF, and these are significant potential buyers for the test. They typically put in long-term contracts as well. And what they require, however, is WHO prequalification -- and I should have said, as do PEPFAR as well. In terms of where we are with the process with WHO prequalification, we're pretty much getting towards the end of this process now. We started it in April last year. It's a 3 process -- there's 3 elements to the approval. You got to submit your technical file, that's reviewed. All the data that supports the test is reviewed. There's -- as you would expect, questions comes back, they've got to be answered in a 2-week dialogue. That is coming towards the end of that process. You also have a site audit by the WHO. That was -- that took place in January this year. There were 1 or 2 corrective actions that were required. And we have submitted our documentation to prove that we've closed the corrective actions. And we've had confirmation that they are happy with our responses, and they will now fit into the next audit cycle, which again, is promising. Then finally, there's an evaluation required. In terms of the evaluation, we were working towards getting the test evaluated in Kenya. And the -- and we were just starting to go through FX when COVID struck, and then Kenya locked down. So that basically put that study on hold. And I think this next piece is quite encouraging, is to sort of demonstrate how much WHO really want our product. Because what they -- we went to them and obviously advised them that this would happen, and we suggested that we could utilize the multicenter study that MSF carried out, and MSF was more than happy to share the data with WHO, and that's what happened. We shared that data with WHO. They've reviewed the study, and they have indicated that they are happy to give us an approval subject to us completing the Kenya study at a later date. But I think basically we will get WHO approval once this technical file audit is complete. Our expectation, that will be complete in late, late summer, which is perfect timing in terms of then, for example, PEPFAR and UN agencies getting them included into their budgets for 2021 and obviously then going forward. So I'd say, hopefully, that's given you a good feel as to the exciting opportunity we have with CD4 advanced disease. We do have the initial product we developed, the -- which is a 350 cut-off. That test was initially designed to be used and to help prioritize deployment of ART. And clearly, as I stated WHO did change their approach here. So there is some opportunities for this test, it will be limited. However, we do see an opportunity in Nigeria. And we've taken the product all the way through evaluations, approval by the ministry, and it's been included in the national HIV algorithm. That was concluded in January this year. Again, we're getting to the point where government and regional authorities are working out the demand that they wanted for the test, and we expected orders to commence in March this year. Unfortunately because of the COVID outbreak, that has delayed things, but we're now looking probably at late, late summer, again, early autumn before we realize that. So we do expect to see sales in this financial year for that test through Nigeria. Moving on to food intolerance. I've given you an overview of what the products have us positioned. The -- in terms of our products, we basically have 3 product types or point-of-care tests called Food Detective. We have a lab-based -- we have 2 lab-based test, a foodprint test and also ELISA-based testing, and we also offer a lab service through our U.K. based in -- near Cambridge and Ely. In terms of this business, we export in over 75 countries. We've grown the revenues from GBP 2.3 million in 2009 to last FY of GBP 9.2 million. We've got back to double-digit growth last year as well. It's extremely cash generative. And last year, EBITDA was at GBP 3.9 million. One of our key strategies for food intolerance has been China. We have an excellent partner there that we engaged with a few years back. We identified a specific Chinese panel -- food panel for the Chinese market. We then developed that panel in our facility in Ely, and we -- then there our Chinese partner has now taken up that product and has gone through the Chinese authorities approval process. Where we currently stand is the -- we have approval for sale, which we received in March this year to sell in the labs. The key market driver for them is getting self-test approval. They are expecting that to be the -- towards the end of summer again, so August, September timeframe is our current expectation, which again I think, given what happened with -- in China with COVID to get those approvals through in the time they did is a good testament to our partner in China, the work that they've undertaken. In terms of that work that they've undertaken, they spend in excess of $2 million to date in terms of the studies that they're currently undertake and are undertaking. And also in addition to that, they've developed a Chinese-specific app. And what's interesting about that app is that the -- they're actually using artificial intelligence to replace the need for a nutritionist, which is key for that self-test. So when you get the result or when the user gets the result, the app will give them the nutritional support and guidance that's required. So we're really interested in what we've done there, and they see us a huge opportunity. I think that's already been backed up with -- they purchased 90,000 tests in last FY. That was before they even achieved any approvals. And we've already shipped a further 28,000 tests last month to them. And then in terms of their forward projections, they're projecting sales of -- by calendar 2023, they expect to be at somewhere roundabout 1 million tests per annum. To give you a feel for what that would be in terms of revenues to Omega, we sell the test at $15.5 per test and the margin is at 70%. So again, it's -- in terms of the potential here is obviously to double the size of our food business in China alone. In terms of allergy, clearly, we took the decision with allergy to -- sorry, yes, we took a decision to stop development of our allergy product range, which was developed on the IDS-iSYS system and is sold exclusively by IDS. This was taken after a thorough analysis of the best use of company's resources, both in terms of money, people, et cetera. And what that resulted in is also an exceptional write-off in last year's accounts of GBP 7.7 million. What I would stress is that there was no cash impact to this and in fact what -- we'll actually save GBP 800,000 in this financial year by stopping the development. I would also like to stress that we will continue to manufacture and offer for sale the 69 allergens that we have CE marked for IDS. In terms of -- that said, we wouldn't expect large volumes in the short term coming from this product range, but we will continue to manufacture it. In terms of development opportunities, clearly that was one of the key areas of the fundraise. We see a great opportunity to complement our CD4 advanced disease test by offering these products. As I said earlier, in terms of that strategy with WHO, you test using the CD4 advanced disease test. If it's positive, you would then reflex to running tests such as TB LAM and Cryptococcus the -- to determine if the patient has these diseases. And so we see it as an excellent fit to CD4 and enhances our position in the global health market space. And I think in addition to that, obviously, what we are doing is building up capacity for COVID demand. And at some point, I guess we all hope that this will drop away. I know when that demand does eventually drop down, then we'll have this excess capacity, and this is the way we're utilizing that capacities bringing these products into the market. In terms of Cryptococcus, it's used to diagnose Cryptococcal meningitis. And as said, we believe it's an opportunity to improve the sensitivity of the current products that are in the market. In terms of TB LAM, that's used to diagnose TB in people living with HIV. And again, what we see is an opportunity there, not just in terms of improving the sensitivity of the product in the market, but actually improving the ease of use of the product in the marketplace as well. I think it's fair to say that the TB LAM project is technically more challenging than the Crypto project. However, we felt we have done is recently strengthened our lateral flow development capabilities, and we believe this is more than achievable to realize both these tests into the marketplace. What I'll do now is I'll hand over to Kieron who will talk you through the financial numbers.

Thanks, Colin, and good afternoon, everybody. So what this slide shows is a snapshot of the financial results for the year ended 31 March, 2020. And as you can see on the top left, group sales overall increased by 12%, up to GBP 9.8 million. And on the top right, you can see that the gross profit increased by GBP 700,000, up to GBP 6.3 million. And what I find encouraging actually is that because we've had a flat cost base for the last 2 years, what you can actually see is that increase in gross profit of GBP 700,000 has all dropped down to the bottom line, where you can see that the EBITDA has gone up from GBP 200,000 up to GBP 900,000, bearing in mind that these figures are quoted before the exceptional write-off that Colin mentioned earlier relating to allergy, which was a noncash write-off of a net GBP 7.7 million. The next slide shows the sales from our 2 flagship food intolerance products. So on the top half, we have foodprint. This is our laboratory-based product, which can test a patient's reaction to over 220 foods. And the top 5 markets alone account for 58% of sales. But also what I find encouraging here is that if I go back 3 years ago, the top 5 markets for foodprint accounted for more than 70% of total sales. So I think that what that demonstrates is that we do have good growth going on in the mid-tier countries that we sell into. And those countries that are all geographically spread throughout the world. So we're talking about Latin America, Middle East and Far East. So there is a very good geographic spread for this product. And on the bottom half, we've got Food Detective. This is the point-of-care test that we have, and that tests for a patient's reaction to 59 of the more common foods that people eat. What's noticeable with the Food Detective is that you can see a recent decline in sales, and this is mainly due to market competition that is affecting what was then our largest market 3 years ago in Poland. But the significant uplift that you can see in 2020 that is all down to the launch of this new Chinese version of Food Detective. And as you heard from Colin just moments ago, there are fantastic prospects for this product as we go forward. This next slide -- what I'm trying to do here is just trying to breakdown each of the segments that we've been operating in, in the year just ended. And it's just designed to show things in a slightly different way, to show where we spend our money and where we deploy our people. So you can see from this that our food division on the left-hand side, you can see the figure that Colin mentioned earlier, where we've generated an EBITDA of GBP 3.9 million. But as you sort of scan your eyes to the right, what you can see or what's noticeable, I suppose, is that the food intolerance division has had to do much of the heavy lifting for the other segments, particularly in supporting the development activities that we've been doing elsewhere in the business. You can also see on the right-hand side, about halfway down, there's a total segmental EBITDA of GBP 1.9 million. And if you go slightly further down on the right-hand side, you'll see that I've highlighted group plc cost of GBP 1 million. When you deduct the GBP 1 million from the GBP 1.9 million, that's how you get back to the GBP 0.9 million of group EBITDA, which I spoke about earlier on the first slide that I presented. And you can also see that we spent GBP 1.9 million of development, GBP 1.9 million on development activities across those 3 segments. And along the bottom half, on the right-hand side, what you can see are other cash flow movements and what you find is that the group actually had a total cash outflow of GBP 2 million in the year to March '20, and that was actually balanced off by 2 smaller equity fundraises that we did in 2019, such that the overall position in cash was a slight net increase of GBP 200,000. And what they did, I mean, if you were to check the balance sheet for the -- at 31 March, '20, you would see a reduction in the overdraft as we were using then, which dropped from about GBP 800,000 down to about GBP 600,000. Obviously, if we come slightly more up to date, we've been successful in raising a net GBP 10.5 million through a placing with institutions of GBP 8 million, which was GBP 7.5 million net of expenses. And then the take-up through the open offer was we were able to attain the full target of GBP 3 million that we were looking to raise. So this is really just a snapshot of how we propose to deploy the funds. So as mentioned earlier, the -- what we're looking to do is to fund additional capital expenditure to allow an increase in capacity to produce both ELISA and lateral flow products relating to COVID-19. In terms of ELISA production, we plan to spend around GBP 1.1 million, which is directed towards supporting an increase in capacity from 275,000 tests a week up to 1 million tests a week. And Colin mentioned earlier that this capacity can be utilized to produce either antigen or antibody tests as the process to produce either is actually quite similar. In terms of lateral flow capacity, it's a similar figure to spend GBP 1.1 million to support an increase from 100,000 tests a week, up to 0.5 million tests a week. And of that capacity, we will make up to 200,000 available to the Rapid Test consortium, and the remaining 300,000 will be used to produce either antibody or antigen tests, depending on when the demand materializes. But I'd just also like to point out in fact that if demand from the UK-RTC was to go above 200,000 tests, we would, of course, allocate some additional capacity to fulfill that demand as well. And then in terms of beyond the capacity for COVID tests, we do see opportunities to utilize our current development expertise. And there's one product or one project that we've identified that we would like to do, and that is to improve the margins regarding our VISITECT CD4 test. And really, what this is designed to do is, it is designed to be preemptive and to try to mitigate what could be downward pressure on selling prices from NGOs as we get into higher volumes. So we've identified the possibility, in fact, to reduce the current cost -- the current material cost of goods for CD4 to reduce it from GBP 1.10 a test down to about 56p a test. So we think that would enable us to preserve margins even if our current $4 per test selling price was to come under a little bit of pressure. And then, finally, there's development expenditure for both the Cryptococcal meningitis and the TB LAM test that Colin went into some detail just before I joined you. So that covers briefly what I wanted to talk about this afternoon, and I will hand back to Colin.

Thanks, Kieron. I guess in terms of, I think, we appreciate the shareholders are keen to know more about potential orders and future revenues, but we can't predict these. What we do know at this stage is the manufacturing capacity that we are preparing and whereby we will be in position to produce 1.5 million tests a week and extend that to 2 million tests a week, ultimately. Clearly, we need to ensure that we've the contracts in place to fill the capacity and I'd just again like to highlight the finnCap research from June does provide some helpful insight for investors in terms of revenue and profit potential from lateral flow disease and ELISA test based on the capacity and utilization. What I hope that we've managed to do this evening is present to you that we have excellent opportunities with COVID-19, where we've positioned ourselves to cover both antibody and antigen testing in central and decent life settings, but we also have growth opportunities within our core business for both CD4 and food intolerance, which should provide a strong and consistent news flow over the next 6 months and beyond. And thank you for your time.

[Operator Instructions] Just wanted the company take a few moments to review investor questions submitted already. I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A will be available from the Investor Meet company dashboard. And lastly, before we go into the Q&A, I'd just like to remind you that your feedback is important to the company. Immediately after the presentation has ended, you'll be redirected for the opportunity to provide feedback in order that the company can better understand your views and expectations. Colin, Kieron, obviously, investors -- we invited over 600 investors to the presentation today, all of whom have had the ability to presubmit questions. And of course, we've had a significant number of these. What I probably propose is, I see these have been classified, I guess, into common themes. And having seen some of the questions submitted today, I think there would be an overlap. But just to reassure everybody that submitted a question, they will be reviewed by the company and where appropriate responses will be published, and you'll be notified from the platform when they're available for you to review. So perhaps, Colin, I could start with you. We received a number of questions around communications. For example, Omega Diagnostics clearly has much good news and very bright future going forward. Unfortunately, the communication to the market has not caught the market attention or have, but to a negative effect. What action is being taken to ensure positives are maximized in communication?

Yes. Thanks, Mark. Yes, I think, in terms of communication, I think, what's clearly happened over the past few months as Omega's shareholding make-up has changed quite considerably with a large shift towards retail investors, a lot of whom utilize various media formats to communicate, and I think we were obviously behind the curve there, and I think we accept that. And what we have done is we've listened to feedback from shareholders. And in term of our investor relation activities, what we've tried to do is make some alterations already to that approach, and we're currently planning further improvements with our overall communication. I think one example is actually this meeting as well, where we're obviously trying to reach out to as many retail investors as possible. And I've even got my daughter to explain how to use Twitter on this process as well, which is, I guess, a point. And then I think the last thing, in terms of the PR side of things because I think -- and I did notice some questions around that. I think I'd just like to highlight in terms of -- the ultimate responsibility for R&S statements, and their content lies with Omega and not the PR company. And I think in terms of Omega, we do have a tendency to be cautious in our approach and are very conscious not to overpromise, I think with the aim to try and over-deliver. This approach also comes, I guess, came over in the second Sky interview. Again, that was a point that was raised, where I was very conscious of not repeating what happened after the first interview. Again, this is an area where I think we will layer and look to improve our overall style and how we balance our overall messaging.

Obviously, I'm mindful of time and mindful of the importance of giving feedback. So I will go through a few more of these sections. So another theme of interest for investors, and probably quite rightly so, was the recent fundraise and the open offer. By way of an example, the questions submitted, the open offer was 40p, but the share price was lower than that. Do you feel that the investors are not being treated fairly. Perhaps, Kieron, that's one for you.

Yes. Thanks very much, Mark. I mean, I guess, I think, the first thing to mention is that we announced the open offer on the 19th of June. And the day before, on the 18th of June, the closing share price was actually up at 55p. So I think that's the first observation. And secondly, I do think we felt it was important the company needed to raise money when they had the opportunity to do so. Because I think without doing that, we simply would not have been able to exploit any of the COVID-related opportunities that you've heard about this morning or this afternoon, I should say. There's a number of companies out there that have raised money recently that haven't included an open offer. We made a decision that we would include an open offer so that everybody did have a chance to participate. And obviously, in raising money with institutions, the placing price was set at 40p. And obviously, we aligned the open offer price to that 40p because it aligned with what the institutions came in at, what wealth managers came in at and indeed what the Directors participated as well. And I think we've outlined previously, in fact, we've got strong potential news flow over the next 6 to 12 months. Now clearly, management has a job to now deliver on this news. And it is our hope that if we do deliver successfully, this will be reflected positively in the share price.

I guess, a follow-on question, perhaps to add into the mix. The pricing was extremely poor in its timing felt like shareholders were manipulated by doing that before DF announcement. Are you aware you've lost significant credibility because of that?

I'll take that one as well, then, Mark. And I guess for the benefit of the audience, I assuming DF announcement is referring to design freeze of the UK-RTC case. So firstly, we appreciate the sentiment, given that a number of shareholders who've joined us over quite recently and will have been buying at higher prices, so I guess I would confirm that the decision that we took to raise funds was actually taken on the 8th of May, given the significant amount of background work that is always required when you undertake a placing and an open offer. So that decision was taken nearly 2 months before design freeze actually happened. And of course, when we took the decision in early May, there was no certainty that design freeze would be achieved in any case. So I think it is important that we decided we would raise funds at that point in time. Had we not done so, then we would be at least 2 months further behind in being able to now react to what is a successful outcome in achieving design freeze. And I guess the second observation is, also worth pointing out that had we not raised any funds, then when it came to releasing the financial results for the year-end March '20, which we did yesterday, by raising money, we've actually been able to avoid what could have been an order opinion containing an emphasis of matter on go in certain effect and of course, by the opinion at works. And I actually think that going forward, with the strongest balance sheet that the company has had in its history is actually overall a better position to be for the midterm and long-term growth opportunities.

I guess, in line with the openness of this Q&A, I mean, you received a number of questions about the Omega Diagnostic share price. Just an example, where do you think the share price will be in a year's time. Now of course, no one knows where the price will be in a year's time, and I appreciate that you can't comment directly on your share price given the regulatory environment, of course, within which you operate as a listed company. But of course, investors asked about it. We're not shying away from the fact that these questions were submitted. And I just wondered if there was anything you could add to that?

Yes. I mean, I would say it's always disappointing when the share price falls from having been at a higher level. We are investors too, so we do share the pain of investors. What I think is that investors are happy to hold to the mid-term growth potential that exists and that everyone's heard about this afternoon, we do feel confident that ultimately, their support will be rewarded in the end.

Okay. I think also additionally, obviously, we've received a number of questions around forecasts. For example, when does the company expect to be profitable? And does the company have a projection of profits for year ending 2020 through to 2022? And of course, a number of these questions were all submitted -- also submitted during the live event. So I guess, clearly, you're limited by what you can say regarding forecasts. But what can you tell us?

Yes. I think in terms of forecast, I think a lot of the questions were around sort of market capitalization, et cetera. And I'm afraid that I can't predict that future. And what we do hope is that our strategy that we tried to demonstrate tonight will lead to growth in the share price over the coming months and years. And I think, again, I just told you back to that finnCap research note is a useful source of information on potential future profits.

I am mindful of time. So perhaps we can address the last 3 questions, if I can jump forward just because, obviously, timing is what's coming up to an hour. I guess, all really relating around COVID-19 UK-RTC. A question, for example, some people claim and post e-mails received from Colin. One such reply was steps after the consortium achieved design freeze on the antibody product. It was a 1 -- it was the Step 1 to negotiate with the U.K. government on the supply deal. What are the steps for the antibody product? How are negotiations going? And what is the time line for the product to achieve 100,000 per week in August?

Yes. Thanks for that. I mean, I think I've already covered this in the presentation, but I think it's worthwhile just repeating it given the number of questions that we've received. And on account of the next key milestones and for the commercialization of this product, as I said, Step 1 is securing supply agreement with the U.K. government. And what we're doing in parallel to that is our intent of completing the verification and validation of the product. And once that's complete, they will then lead on to CE marking the product and gaining the regulatory approval. The -- then at the same time, in terms of Omega, and what we're looking to do is then take transfer of the product and from -- to take the manufacturing records from Abingdon Health and then turn them into Omega procedures and produce 3 batches, and then we then need to prove equivalence to the performance that Abingdon Health have achieved. And then once we have that, then we're obviously in a position where we can then start supplying. It is our belief that in terms of our internal processes, our aim is to complete by the end of August. And we're in a position to produce 100,000 tests per week that could then start the supply in September and building up to 200,000 tests per week by the end of October. I think just one thing I would like to add in terms of the overall development time. This product was started to develop in -- 5 months ago. If I know it was less than 5 months ago. By the time we -- in August, it will be in a 5-month time scale. That is exceptional performance for developing a diagnostic test, and especially of the quality that's being delivered. So I think I'd just like to highlight that during this call.

How confident are you that the U.K. -- that the government will even buy the tests? All this noise for potentially nothing given the signs of antibodies proving to be useless is a serious concern.

Yes. I quite understand that question. It was -- And I think I've tried to address earlier one in terms of the use of antibody testing. I think their asking is a little bit hard in terms of, obviously, we're working very closely with the U.K. government. They're involved in all the calls that we have on a weekly basis. So I think there's a high level of confidence that the U.K. government will procure tests, and they will be -- and again, because of our high-quality reliable test, and it is also part of the government's 5-pillar testing strategy. So I think we are confident that the U.K. government...

Sure. And I guess, finally, what are the contracts, both with the U.K. government and with outreach -- with -- out with the U.K. that the company currently has or is actively pursuing with regards to both COVID-19 Rapid Test and the COVID-19 IgG?

Yes. Fine. I think in terms of the UK-RTC, I think I covered that in terms of, obviously, the aim is to finalize a contract with U.K. government pretty soon. I think part of it was already alluded to the fact that the -- any demand that is available after we supply the government will be made available, and that's certainly our hope and our intention that we'd then be able to supply that to markets outside. We're already in -- starting early discussions with other parties, I would say, of the U.K. that may have an interest in this test on the assumption that we will get that included as part of the contract. And in terms of contracts for the -- well, antibody test, I know it will be Mologic lateral flow test. As I said during the presentation, our target there is to use the established distribution network that we have in over 75 countries. And so those distributors are who we'll be working with, and they will all try to be supplying the end users like local government and health departments.

That's perfect. And Colin and Kieron, thank you so much for updating investors today as part of your investor road show. Could I ask investors, please, not to close the session as you will be automatically redirected for feedback. If you accessed this meeting platform from our website, the form will appear. If you accessed it via the link, we would ask you, please, to log-in. As I said before, feedback is incredibly important to the company. We'd be grateful if you could assist and provide that feedback. Once again, on behalf of Omega Diagnostics and Investor Meet Company, thank you for your time today, and please provide your feedback to the company. That ends the presentation.