Nightingale Health Plc Financial Statements Release 1 July 2022 – 30 June 2023
Nightingale Health Group's Financial Statements Release 1 July 2022 – 30 June 2023 (unaudited)
Nightingale Health’s Financial Statements Release: Business growth accelerates
Company release, 28 September 2023 at 9:00 a.m. (EEST)
This release is a summary of Nightingale Health Plc’s Financial Statements Release from financial year 1 July 2022 – 30 June 2023. The full Financial Statements Release is attached to this release.
Numbers presented in brackets refer to corresponding year-on-year period unless otherwise stated.
January – June 2023 (H2) key financials (IFRS)
- Revenue was EUR 1.94 (1.04) million
- EBITDA was EUR -6.37 (-5.26) million
- Operating loss was EUR -9.85 (-7.73) million
- Net loss for the period was EUR -9.53 (-10.33) million
- Unadjusted earnings per share (EPS) was EUR -0.16 (-0.17) (Series A and EMP) and EUR -0.16 (-0.17) (Series B)
- Cash and cash equivalents at the end of the period were EUR 80.64 (95.28) million
July 2022 – June 2023 key financials (IFRS)
- Revenue was EUR 4.18 (2.31) million
- EBITDA was EUR -11.83 (-9.39) million
- Operating loss was EUR -18.52 (-13.63) million
- Net loss for the period was EUR -18.08 (-16.09) million
- Unadjusted earnings per share (EPS) was EUR -0.30 (-0.27) (Series A and EMP) and EUR -0.30 (-0.27) (Series B)
- Cash and cash equivalents at the end of the period were EUR 80.64 (95.28) million
Significant events during the financial period 1 July 2022 – 30 June 2023
- Nightingale Health and Terveystalo signed on 30 June 2023 a letter of intent to expand their strategic partnership. In August 2023, after the end of the financial period, Nightingale Health and Terveystalo announced the agreement of the expansion of the partnership and that Terveystalo adopts Nightingale Health’s blood analysis technology in regular health checks in occupational health. Nightingale Health expects the expansion of the collaboration to significantly increase the sample analysis volumes ordered by Terveystalo.
- Nightingale Health acquired a worldwide license and rights to the VelvetTM blood collection device from Weavr Health Corp. The acquired license gives Nightingale Health the rights to independently manufacture the devices and commercially use them in connection with its services. In consideration of the royalty free license, Nightingale Health gave up its rights based on the convertible loan (original investment of approximately EUR 3.5 million).
- A study of over 100,000 people was published in Nature Medicine, one of the world’s leading medical journals, further demonstrating that Nightingale Health’s blood test can identify early risk signs for many common diseases all at once and capture a unique snapshot of a person’s health state in a cost-effective way. The study was conducted by researchers from universities in Germany, the Netherlands, and the UK and is one more indication that Nightingale Health’s technology can significantly support in building a global preventative health system.
- As part of its international growth strategy Nightingale Health established a new subsidiary in the UK and announced it will establish a laboratory in the UK during 2023. In the UK, Nightingale Health aims to expand its partnerships within the medical research industry, and to eventually make the technology available to the UK healthcare system.
- In Japan, Nightingale Health has during the financial period signed new contracts with dozens of hospitals and clinics to expand the sales of the preventative health service offered by Nightingale Health Japan KK, a fully owned subsidiary of Nightingale Health Plc and Welltus Inc., a subsidiary of Japanese conglomerate Mitsui & Co Ltd.
- Nightingale Health announced that its strategic partnership in Estonia was progressing. Nightingale Health analyzed and delivered the analysis results from more than 200,000 Estonian Biobank samples. The collaboration with Estonian Biobank allows the use of Nightingale Health’s analysis results in medical research.
- Nightingale Health announced that it has finalized the integration of genetic information into its services. The company announced in 2022 that it had acquired a Finnish genetic testing company, Negen Oy, and that it will set up a center of excellence for genomic data analysis. These investments enabled the company to offer the combination of blood analysis data and genetic information in its services. The addition of genetic data to its blood analysis further improves the risk detection capability of the company’s technology. By combining information about how lifestyle affects the dynamic state of one’s health with the static inherited state, Nightingale Health’s services can provide health risk assessments that are superior to any traditional health risk analysis.
- Nightingale Health was granted patents for the company’s technology’s ability to determine whether an individual is at risk of developing renal disease, atrial fibrillation, digestive system disease, and pre-eclampsia. Additionally, patents were granted for the ability to determine whether an individual is at risk of dying from breast cancer and risk of dying from prostate cancer.
- Nightingale Health published a pre-print showcasing that the company’s blood-based risk prediction models outperform genetic risk prediction in chronic diseases. The study shows that genomic data alone is not a solution for accurate disease risk prediction. Risk models based on blood biomarkers provide more accurate and actionable information, and when combined with polygenic risk scores, they provide a superior tool for finding people at high risk and targeting them with preventative actions. The combination of blood biomarkers and genetic data takes into account both inherited static risks and dynamic risks that reflect lifestyle.
Key figures
|
EUR thousand |
Group 1–6/23 |
Group 1–6/22 |
Group 7/22–6/23 |
Group 7/21–6/22 |
|
Revenue |
1,939 |
1,041 |
4,182 |
2,313 |
|
EBITDA |
-6,372 |
-5,261 |
-11,835 |
-9,389 |
|
Operating loss |
-9,852 |
-7,727 |
-18,524 |
-13,634 |
|
Net loss for the financial period |
-9,530 |
-10,332 |
-18,083 |
-16,091 |
|
Equity ratio |
92% |
91% |
92% |
91% |
|
Net debt to equity ratio |
-78% |
-78% |
-78% |
-78% |
|
Balance sheet total |
106,793 |
124,048 |
106,793 |
124,048 |
|
Number of employees on average |
87 |
67 |
82 |
64 |
|
Employee benefits* |
-5,273 |
-3,613 |
-9,381 |
-6,499 |
|
Cash and cash equivalents at the end of the period |
80,639 |
95,279 |
80,639 |
95,279 |
|
Earnings per share (EPS), undiluted and diluted*, EUR |
-0.16 |
-0.17 |
-0.30 |
-0.27 |
* Employee benefits include expenses in accordance with the IFRS 2 Share based payments standard, which totaled EUR 3.95 (3.53) million in the financial year.
** The company’s potential dilutive instruments consist of stock options. As the company’s business has been unprofitable, stock options would have an anti-dilutive effect and therefore they are not taken into account in calculating the dilutive loss per share. Thus, there is no difference between the undiluted and diluted earnings per share.
From the CEO
We founded Nightingale Health to create a solution that enables effective prevention of chronic diseases. One of our main goals was that our proprietary technology would become adopted by healthcare systems, so that it could reach and help as many people as possible.
Large-scale prevention of diseases is only possible if we are better able to target medical interventions to the people who benefit the most from them. Nightingale Health's blood test is the missing link that identifies people at the highest risk of disease and connects them to interventions provided by healthcare professionals, thus enabling the realization of a preventative healthcare system.
The letter of intent we published at the end of the financial year about the expansion of our cooperation with Terveystalo, Finland's largest health service provider, is a concrete step towards this goal. In August 2023, we entered into an agreement on the expansion of our cooperation, and announced that Terveystalo will include our risk prediction models and blood values in regular health checks in occupational health. The agreement indicates that our technology brings added value to healthcare and that it can be successfully integrated into existing clinical operations, where blood samples are taken systematically on a nationally significant scale.
In the research market, the demand for our analysis services continued to be strong during the financial period. We achieved the goal we set for the financial year of signing contracts for the analysis of more than 175,000 blood samples. We have grown into a globally significant player and our customers are publishing scientific research results based on the use of our technology in prestigious scientific journals at an accelerating pace.
The medical research results published by our customers transparently and continuously validate our technology. For example, the results of an independent study based on analysis results from more than 100,000 blood samples published in the science journal Nature Medicine showed that our blood test can cost-effectively identify early risk factors for several common diseases from a single blood sample better than current solutions. The published article also emphasized the applicability of our technology to health screenings that identify disease risks, and as I mentioned, the technology is now being used in cooperation with Terveystalo.
In January 2023, we announced that we had acquired a worldwide license for the Velvet™ blood collection device from Weavr Health Corp. The license gives us the rights to independently manufacture Velvet™ devices and use them commercially in connection with the services we offer. The Velvet™ blood collection device together with our analysis service stands out in the market, as most companies offer either sample collection devices or laboratory analysis services, but not both. By acquiring this license, we are able to offer our customers an end-to-end solution that can include everything from blood sampling to delivery of results. Additionally, we are able to offer services to markets where it is currently not possible for people to visit a traditional laboratory.
After the end of the financial year, we published a strategy update and announced that we will focus on business to business and business to governments markets. For the strategy to be implemented effectively, we have decided not to continue businesses where we have a direct customer relationship with the consumer. However, assets created through investments in consumer services can be allocated to business operations with companies and the public sector.
Over the past few years, we have been operating in several commercial areas simultaneously to explore the business opportunities offered by our technology. This process has been crucial for us to be able to learn from the market and define a more focused strategy which we have now started to implement. I believe that with the successes achieved during the financial year, the company's strong financial position and the change in strategy, we are even stronger in the market to pursue growth.
Teemu Suna
CEO and Co-founder, Nightingale Health Plc
Business targets in financial year 2022 – 2023
During the financial year 2022 – 2023, Nightingale Health achieved the following business targets communicated in the Financial Statements Release published on 29 September 2022:
- Win contract(s) in medical research with more than 175,000 blood samples
- The demand for Nightingale Health’s service in medical research continues to be strong and the company has won significant new commercial agreements in this sector reaching the target of selling analysis for more than 175,000 blood samples.
Nightingale Health did not achieve the following business targets within financial year 2022 – 2023:
- Win a significant commercial contract in the public healthcare sector
- The negotiations for a commercial contract in the public healthcare sector are progressing. Nightingale Health expects to announce an update regarding the public healthcare sector by the end of calendar year 2023.
- Win B2B commercial contract(s) with more than 50,000 blood samples
- Nightingale Health announced on 30 June 2023 that it has signed a letter of intent with Suomen Terveystalo Oy to expand the strategic partnership. Nightingale Health expects that the expansion of the partnership will significantly increase the blood sample analysis volumes ordered by Terveystalo. Nightingale Health and Terveystalo announced the agreement of the expansion of the partnership in August 2023.
Business targets for financial year 2023 – 2024
Nightingale Health’s business targets for financial year 2023 – 2024 are:
- Win an international commercial contract with a healthcare industry partner with significant reference and contract value
- The strategic rationale for the target is to continue to demonstrate the business value of Nightingale Health’s technology in high volume clinical use cases to accelerate business growth
- Win an international commercial contract with a white label partner with significant reference and contract value
- The strategic rationale for the target is to demonstrate Nightingale Health’s unique value creation capability and offering in B2B2C to capture strong market share
- Win contract(s) in medical research with a total contract value of at least EUR 3.2 million
- The strategic rationale for the target is to continuously demonstrate Nightingale Health’s unique value creation capability in medical research and further strengthen the outstanding scientific evidence to accelerate clinical translation.
In addition, Nightingale Health will continue to pursue the FDA premarket authorization (510(k)). In parallel, Nightingale Health examines the option to apply for CLIA and/or state certification, which enables providing certain services as a Laboratory Developed Test and potentially allows the company to take the first step as a local service provider in the United States market faster.
Mid-term and long-term business targets
Nightingale Health updates its mid-term and long-term business targets as follows:
Mid-term business targets are:
- To conclude an agreement to analyze two million samples annually in Europe
- To conclude an agreement to analyze ten million samples annually in the United States or in Asia
- To extend laboratory capacity in respective geographical areas to meet the analysis capacity required by the aforementioned agreements
- To achieve positive EBITDA (New target)
Long-term business targets are:
- To analyze 100 million blood samples from partnerships with the healthcare sector, health initiatives, and white label partners (Updated target)
- To generate EUR 500 million in annual revenue from partnerships with the healthcare sector, health initiatives, and white label partners (Updated target)
The Board of Directors’ proposal on the management of the result of the financial period
The parent company's distributable non-restricted equity on 30 June 2023 was EUR 80,784,991. The parent company's net loss for the financial period totaled EUR -16,816,398.
In the coming years, Nightingale Health will focus on funding its growth and developing its business. The company is committed to a very strict dividend policy that is connected to Nightingale Health's result and financial standing. The company does not expect to distribute a dividend in the short or medium term.
The Board of Directors proposes to the Annual General Meeting that no dividend be distributed for the financial year 1 July 2022-30 June 2023 and that the loss of the financial year is recorded in retained earnings.
Live webcast for investors and media
Nightingale Health will arrange a live webcast for investors and media in English on 28 September 2023 at 2 p.m. EEST. The webcast can be followed online at:
https://nightingalehealth.videosync.fi/2022-2023-results
Presentation will be held by CEO Teemu Suna and CFO Tuukka Paavola. A recording of the event will be available later the same day at www.nightingalehealth.com/investors.
Helsinki, 27 September 2023
Nightingale Health Plc
Board of Directors
For further information, please contact:
Teemu Suna, CEO, +358 20 730 1810
[email protected]
Certified Adviser:
Oaklins Merasco Ltd, tel. +358 9 6129 670
About Nightingale Health
Nightingale Health is The Preventative Health Company. Staying healthy is one of the top priorities in human life. Our health has a profound impact on our quality of life, and it’s also strongly connected to the lives of those close to us. Nightingale Health enables prevention by combining the power of our in-house developed, advanced blood analysis technology with unprecedented access to global health repositories and world-leading medical research. With this combination, we go beyond the traditional healthcare and wellbeing tools: We provide the scientific connection to multiple health and disease outcomes and the ability to predict future healthy years.
Nightingale Health operates globally with a parent company in Finland and seven subsidiaries in countries such as Japan, the United States, Singapore, and the United Kingdom. Nightingale Health has customers in more than 25 countries in the healthcare and medical research sectors. The company’s technology is being used in many of the world’s leading health initiatives, such as the UK Biobank, and over 450 peer-reviewed publications validate the technology. The company’s Series B shares are listed on the First North Growth Market Finland marketplace. Read more: https://nightingalehealth.com
