OVERVIEW

 

The Group is completing its strategy to transform into a quality and innovation-led pure-play CDMO, and further establishing its global leadership in developing and manufacturing high-quality viral vectors for cell and gene therapy. These efforts have been led by Dr. Frank Mathias, the Group's newly appointed CEO, who joined in March this year. During this period, Dr. Mathias has reviewed the Group's operations and is now executing his plan to finalise the transformation of the Group into a pure-play CDMO, dedicated to serving pharmaceutical and biotech clients across the cell and gene therapy space.

As part of this transformation, the Group is streamlining operations for enhanced efficiency and client-centricity. The Group now operates as a unified global company, headquartered in Oxford, UK, with operations in Oxford, UK, and Bedford, MA, US. This global alignment ensures that Oxford Biomedica is able to service its growing pipeline of potential new business opportunities and win more clients and programmes at different stages and across different vector types.

To accelerate the Group's transformation into a pure-play CDMO, the Group is taking necessary steps to reorganise the business and its workforce. As a result, Oxford Biomedica has decided to discontinue the development of its therapeutic products and focus on building a high-quality, high-service, innovation-led CDMO. Ultimately the Group expects to accelerate towards broadly Operating EBITDA breakeven by the end of 2024, and deliver strong shareholder returns. The reorganisation of the business completes the Group's evolution into a commercially high-performing entity, primed for sustained growth, and providing the highest levels of service and technical capabilities to its target client base.

 

 

OPERATIONAL REVIEW

 

CDMO Services

 

The Group, with its global leadership position in developing and manufacturing high-quality viral vectors for cell and gene therapies, continues to see momentum in the number of client programmes across all key viral vector types. Currently, its CDMO portfolio comprises 41 client programmes at various stages of clinical development, spanning preclinical studies through to commercial stage.  This diversified client portfolio is a testament to Oxford Biomedica's capabilities across all key viral vectors and the breadth of its service offerings.

 

During the first half of 2023, the Group grew its portfolio of clients and programmes, with multiple expanded and new agreements signed for the development and manufacture of lentivirus, AAV and adenoviral vectors. The Group's client portfolio includes 24 clients, with over a third of these clients working with the Group on more than one programme. This successful growth demonstrates Oxford Biomedica's success in executing its new commercial strategy, including lead generation and qualification, and ability to convert pipeline to client onboarding.

 

	H1 2022*	H1 2023*
	14 clients	24 clients
	28 client programmes	41 client programmes
Cell line, process development & pilot scale production** (Preclinical)	15	25
Early-stage clinical supply            (Phase I / 2)	10	14
Late-stage, process characterization & validation (Phase 3)	1	1
Commercial product supply         (Commercial)	2***	1

* H1 2022 as per the H1 2022 results release, including post-period events. H1 2023 as of this results release. 

** Includes undisclosed stage programmes ***Includes the manufacture of the Oxford AstraZeneca COVID-19 vaccine.

 

Novartis

Oxford Biomedica continues its strong and long-term relationship with Novartis and is currently working with Novartis on multiple client programmes. These include vector supply for Novartis' new T-Charge™ platform, a next-generation platform that aims to revolutionise CAR-T cell therapy, which is being studied in a Phase II trial to assess YTB323 treatment in participants with severe refractory systemic lupus erythematosus.

 

The Group remains the sole global supplier of lentiviral vectors for Kymriah® (tisagenlecleucel, formerly CTL019), the first ever FDA-approved CAR-T cell therapy which is available for the treatment of three different indications. Kymriah^® is available in more than 400 qualified treatment centres in 30 countries having coverage for at least one indication. 

 

Arcellx

During the period, Oxford Biomedica continued to progress its relationship with Arcellx around their lead programme, CART-ddBCMA, which is currently being investigated in a pivotal Phase 2 study and has been granted Fast Track, Orphan Drug, and Regenerative Medicine Advanced Therapy Designations by the FDA, for the treatment of relapsed or refractory multiple myeloma.

 

Juno Therapeutics, Inc. (a wholly owned subsidiary of Bristol Myers Squibb Company)

The Group maintains its collaboration with Juno Therapeutics (Juno), focusing on multiple distinct CAR-T/TCR-T programmes. 

 

Juno has adopted Process C, the Group's best-in-class perfusion bioreactor process for one Phase I and one preclinical programme. This cutting-edge technology offers the potential to deliver superior yield and quality, whilst reducing the costs of goods for manufacturing.

 

Cabaletta

In August 2023, Oxford Biomedica announced its expanded relationship with Cabaletta Bio, Inc., adding CD19 as a new target, following the License and Supply Agreement announced in January 2022. Oxford Biomedica initially licensed its LentiVector® platform to Cabaletta Bio for their DSG3-CAART product candidate, and the agreement has now been extended to grant a non-exclusive license to Cabaletta under Oxford Biomedica's LentiVector® platform IP for Cabaletta's CD19-CAR T programme, CABA-201, a 4-1BB-containing fully human CD19-CAR T cell investigational therapy. Cabaletta Bio has received two IND clearances to date for CABA-201 and plans to initiate a Phase 1/2 clinical trial for patients with systemic lupus erythematosus and lupus nephritis and a separate Phase 1/2 clinical trial for patients with myositis.

 

Further client updates

Among the new lentiviral vector programmes initiated during the period, one stands out as the Group's inaugural 'transferred-in' lentiviral vector technology project. In this arrangement, the new client has predefined the methods and processes, with the Group undertaking the development work. This collaboration is with an undisclosed US-based biotech firm dedicated to engineering cells as medicines. The Group is responsible for manufacturing and supplying viral vectors for the company's primary oncology programme.

 

Post-period end, Oxford Biomedica signed an agreement with Kyverna Therapeutics ("Kyverna"), a clinical-stage cell therapy company with the mission of engineering a new class of therapies for serious autoimmune diseases. Kyverna's anti-CD19 chimeric antigen receptor (CAR) T-cell therapies, KYV-101 and KYV-201, have the potential to offer new hope to patients who have exhausted current treatment options. Kyverna's KYV-101 CAR T-cell product is currently being tested in a Phase 1 clinical trial in lupus nephritis in the U.S. and a Phase 1/2 trial in Germany.

 

The Group's AAV business also continued to mature, with agreements signed with three new AAV clients for process development work for programmes in indications including cystic fibrosis, and gene therapies targeting rare diseases and auditory indications.

 

Following the success of the adenoviral vector work with AstraZeneca to manufacture the Oxford AstraZeneca COVID-19 vaccine, the Group has continued to grow its portfolio of adenoviral vector programmes. Two new adenoviral vector agreements with Oxford University have been signed, including a Clinical Supply Agreement for the manufacture and supply of adenoviral vectors for a vaccine against the Lassa virus, and a second agreement for the supply of adenoviral vector for their programme in Middle East Respiratory Syndrome (MERS) signed post-period. The Lassa virus and MERS have both been identified by the World Health Organisation as priority disease areas for research and development in emergency contexts.

 

Client programmes using the Group's platform technologies continue to advance, including next-generation CAR-T developer, Beam Therapeutics Inc., announcing post-period end, the dosing of the first patient into their Phase 1/2 trial of BEAM-201 in relapsed/refractory T-cell acute lymphoblastic leukaemia/T-cell lymphoblastic lymphoma (T-ALL/ T-LL). BEAM-201 is a CD7-targeting allogeneic CAR-T therapy that incorporates four edits to increase the potency and persistence of cells and Phase 1/2 trials are expected to start in Q3 2023.

 

Business development

Work has progressed to ensure that the commercial team is sufficiently resourced and optimally positioned to leverage the expected increase in cell and gene therapy opportunities under the leadership of the Group's newly appointed Chief Commercial Officer, Dr. Sebastien Ribault, who joined the Group from Merck KGaA in November 2022. To support this growth, the commercial team has doubled in size over the last year, and now has a vector-agnostic approach covering lentivirus, AAV, and other vectors including adenoviral vectors. The team operates in three different areas; Commercial Operations, Sales, and Strategy, Marketing and Corporate Development and are located across the East and West Coast of the US as well as Europe, within close proximity to potential and existing clients.

 

As part of this commercial strategy, the Group is planning the introduction of manufacturing of lentiviral vectors at our Bedford, MA site and AAV to our Oxford site, opening up new potential revenue opportunities. It is expected that by adding lentiviral vector and AAV capabilities to both sites, investing in our platform and innovating in a client-focussed way, we will work with a broader range of companies and support them as they grow and progress through clinical trials, further expanding our reach into the cell and gene therapy sector. This global-focused strategy not only aims to drive sustainable and predictable revenue growth but also ensures the Group is strategically positioned to cater to the anticipated surge in demand from the rapidly maturing gene and cell therapy sector - marked by more approvals, more late-stage trials, and an increasing number of therapies in development.

 

The Group's new commercial strategy has already started to show success and momentum as demonstrated by a growth in both orders and pipeline. The orders signed at the end of July 2023 were materially in excess of the number of orders signed for the financial year ended 2022 (excluding COVID-19 vaccine orders). There has also been consistent growth in the business development pipeline, which grew by over 40% from January to July 2023, and includes all segments from early phase clinical programmes through to late-stage programmes close to commercialisation.

 

 

Innovation

 

The Group takes a client-centric approach to innovation, developing solutions in response to challenges experienced in the cell and gene therapy field that deliver value to our clients. The TetraVecta™ system, the Group's latest innovation, launched in May 2023. This 4th generation lentiviral vector delivery system allows for higher quality, potency, safety and packaging capacity of lentiviral vectors, and enables cell and gene therapy companies to overcome previous barriers in therapeutic development, due to the size, complexity, or interference of the payload to be delivered. The TetraVecta™ system is the result of years of development and understanding of industry challenges and can be used to accelerate the adoption of in vivo gene therapies, as well as support the creation of high-titre stable producer cell lines for previously unachievable payloads. The new technology is currently being investigated by a number of existing clients and several CDMOs.

 

Work continues on the project which Oxford Biomedica initiated last year with Orchard Therapeutics utilising the Group's proprietary LentiStable™ technology. As part of the project, Oxford Biomedica's LentiStable™ technology platform is being used to develop a producer cell line capable of producing high titre lentiviral vectors. The project is focusing on developing high-performing candidate clones for Orchard Therapeutics' OTL-203, an investigational hemopoietic stem cell (HSC) gene therapy in development for the potential treatment of mucopolysaccharidosis type I Hurler's syndrome (MPS-IH).

 

Gene therapeutics pipeline

 

The Group has concluded the review of strategic options for its therapeutics portfolio and, in line with its strategy to become a pure play CDMO, has decided to discontinue work on internal product development from the second half of 2023.

 

No material costs associated with the therapeutics portfolio are expected to be carried by the Group post 2023.

 

Corporate and organisational development

 

The Group's Bedford, MA site is based near Boston, US and is led by Mark Caswell who joined the Group in July 2023 and has succeeded Tim Kelly who has stepped down from the business. Mark Caswell joined the Group as Site Head of US Operations and has more than 25 years' experience in the biopharmaceutical industry, including as Head of Operations at the Portsmouth, New Hampshire site of Lonza Biologicals. Before Lonza, Mr. Caswell worked for over 18 years at Sanofi Genzyme (previously Genzyme) in positions of increasing responsibility, most recently as Director, Global Engineering and Technology.

 

In January, Dr. Sam Rasty announced his intention not to stand for re-election at the Group's AGM and stepped down from the Board in June. Sam joined the Board in December 2020 and was a member of the Scientific and Technology Advisory Committee, and also a member of the Audit Committee until December 2021.

 

In April, Leone Patterson was appointed to the Board as an Independent Non-Executive Director. Ms. Patterson has extensive public company biotech experience, including in the cell and gene therapy industry, and has managed significant growth within international commercial companies working across areas including strategy, finance, operations, and governance.

 

Potential transaction to acquire ABL Europe

 

Oxford Biomedica has entered into exclusive negotiations with respect to the proposed acquisition by Oxford Biomedica of ABL Europe SAS ("ABL Europe") from Institut Mérieux SA ("Institut Mérieux"). ABL Europe is a pure play European CDMO with specialised expertise in the development and manufacturing of solutions for biotechs and biopharma including viruses for gene therapy, oncolytic viruses and vaccine candidates. This proposed transaction would form part of Oxford Biomedica's transformation to be a world-leading quality-focused and innovation-led CDMO in the cell and gene therapy field.

 

Under the proposed transaction, Oxford Biomedica would acquire ABL Europe for a consideration of £12.9 million (€15 million), including the value of  £8.6 million (€10 million) of pre-completion cash funding from Institut Mérieux in ABL Europe, in exchange for new Oxford Biomedica shares. In addition, as part of the proposed transaction, Institut Mérieux would also commit to provide Oxford Biomedica with £17.2 million (€20 million) of additional funding, to cover capex and potential future operating losses, in exchange for new Oxford Biomedica shares.

 

Under the proposed transaction, Institut Mérieux would further build its ownership of Oxford Biomedica by acquiring up to £8.6 million (€10 million) of additional Oxford Biomedica existing ordinary shares in the market from the date of this announcement to 31 March 2024. Institut Mérieux intends to build its ownership of Oxford Biomedica shares through purchases in the open market so as to reach, in aggregate, approximately 10 per cent of the Company's enlarged issued share capital.

 

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

 

The Group remains committed to its role as a responsible business and implementing its Environmental, Social and Governance (ESG) strategy, which is focused on five pillars: People; Community; Environment; Innovation and Supply Chain.

 

The Group has continued its commitment to review OXB policies to ensure they are inclusive, progressive and offer equal opportunities to all our employees.

 

On the environmental pillar, the Group has undertaken climate-based risk modelling, with an expert advisor, to assess resilience against physical and transitional risks posed by climate change.

 

The Group is fully committed to responsible supply chain management and the Group's supplier code of conduct has been distributed to its top 250 suppliers for their acceptance or submission of their own equivalent code of conduct.

 

On the community pillar, the Group donated £50,000 to the Disasters and Emergencies Committee for the Turkey and Syria earthquake appeal and further donations of £3,000 have been made to the Group's nominated charities, Oxfordshire Mind (Registered Charity No. 261476) and Homeless Oxfordshire (Registered Charity No. 297806).

 

Full details on our ESG pillars, including the supplier code of conduct, can be found on our ESG webpage at www.oxb.com

 

 

Financial Review

 

The first half of 2023 has been a period of transition with the Group executing on its strategy of transforming into a quality and innovation-led pure-play cell and gene therapy CDMO. Lentiviral vector manufacturing volumes have continued their post pandemic upward trajectory, with revenues from the core business achieving double digit revenue growth compared to the first half of 2022. COVID-19 vaccine bioprocessing volumes reduced to zero, which is reflected in the overall variance from the prior year.

 

As part of its evolution into a quality and innovation-led pure-play viral vector CDMO, the Group has made the difficult decision to streamline roles, affecting approximately 200 positions in both the UK and the US. This move will ensure strategic alignment of resources while optimising cost efficiency.

 

The Group achieved total revenues of £43.1 million and incurred an Operating EBITDA loss of £33.7 million in the first half of 2023 compared to revenues of £64.0 million and an Operating EBITDA loss of £5.8 million in the prior year. The variance in revenues from the prior year reflects the non-recurrence of any COVID-19 vaccine bioprocessing volumes in H1 2023, partly offset by double-digit growth in lentiviral vector revenues and a full six months of revenues from Oxford Biomedica Solutions. At a cost level, there was an increase in operating expenditure in the first half of 2023 due to the impact of the full six months of operational expenditure of Oxford Biomedica Solutions which was acquired during March 2022, and inflationary cost increases.

 

In September, post-period end, Oxford Biomedica announced that it had entered into exclusive negotiations with Institut Mérieux for the proposed acquisition of ABL Europe. This potential transaction would broaden the Company's customer base in Europe and the cell and gene therapy space and offer cross-selling opportunities with ABL Europe's existing customer base. ABL Europe had forecasted revenues of c.€15million for the year ended 31 December 2023 and EBITDA of c.€ (1.7)m at 31 December 2022

 

In July, post-period end, Homology Medicines Inc. ("Homology"), a genetic medicines company and client of Oxford Biomedica's US business announced an update on their business, including a review of strategic alternatives. Any amounts outstanding at period end and expected to be billed during H2 2023 for bioprocessing and commercial development work are expected to be received in the normal course of business, however the Group is assuming that no further revenues will be received from Homology beyond the current financial year.

 

 

At the end of June, the Group completed a sale and leaseback of its Harrow House facility for £4.5 million to Kadans Science Partner. Under the agreement, Kadans have granted the Group an occupational lease of the property for approximately 15 years at a rent of £0.5 million per annum rising to £0.6 million after 5 years, with a further market rent review after 10 years. In the year the Group has recognised a profit on the sale of £0.5 million, a right of use asset of £2.2 million and a lease liability of £3.1 million.

 

The key financial indicators used by the Board are set out in the table below and the highlights are:

 

-     Total revenue (£43.1 million) decreased by 33% over H1 2022 (£64.0 million) with the non-recurrence of COVID-19 vaccine revenues partly offset by double-digit growth in lentiviral vector revenues and a full six months of revenues from Oxford Biomedica Solutions.

-     Operational losses (Operating EBITDA¹ loss and Operating loss) of £33.7 million and £50.7 million respectively, were higher than the prior year due to the full six-monthly impact of operating expenditure from the acquisition of Oxford Biomedica Solutions in March 2022, inflationary cost increases and then also the non-recurrence of vaccine bioprocessing revenues.

-     Operational activities consumed cash of £5.4 million compared to £24.5 million in H1 2022. The lower level of cash consumed was due to the larger operational loss in H1 2023 being offset by a large working capital inflow, as opposed to a working capital outflow in H1 2022.

-     Capital expenditure decreased from £6.0 million in H1 2022 to £4.9 million due mainly to lower levels of purchasing of bioprocessing and laboratory equipment.

-       Cash burn² was £10.2 million in H1 2023 (H1 2022: £32.2 million) mainly due to increased Operating EBITDA losses offset by positive working capital movements driven by a decrease in trade receivables and other debtors.

-     Cash at 30 June 2023 was £129.4 million compared to £118.5 million at 30 June 2022. The net cash position was £90.1 million as at 30 June 2023 (30 June 2022: £78.7 million).

 

1      Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, fair value adjustments of assets at fair value through profit and loss, and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided on page 14.

2      Cash (burn)/inflow is net cash generated from operating activities less net finance costs paid and capital expenditure. A reconciliation to GAAP measures is provided on page 14.

 

 

KEY FINANCIAL INDICATORS (£m)		H1 2023	H1 2022
Revenues
Bioprocessing/commercial development		40.6	57.3
Licence fees, milestones & royalties		2.5	6.7
Total		43.1	64.0
Operating loss		(50.7)	(19.2)
Operating EBITDA1		(33.7)	(5.8)
Cash consumed by operating activities		(5.4)	(24.5)
Capital expenditure		(4.9)	(6.0)
Cash burn2		(10.2)	(32.2)
Period end cash		129.4	118.5
Net cash3		90.1	78.7
Headcount
Period end		891	959
Average		891	920

 

 

1.     Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, fair value adjustments of assets at fair value through profit and loss, and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided on page 14.

2.     Cash (burn)/inflow is net cash generated from operating activities less net finance costs paid and capital expenditure. A reconciliation to GAAP measures is provided on page 14.

3.     Net cash is cash less external loans.

 

 

The Group evaluates its performance inter alia by making use of three alternative performance measures as part of its Key Financial Indicators (see table above). The Group believes that these Non-GAAP measures, together with the relevant GAAP measures, provide an accurate reflection of the Group's performance over time. The Board has taken the decision that the Key Financial Performance Indicators against which the business will be assessed, are Revenue, Operating EBITDA and Operating profit/(loss).

 

Revenue

 

Revenues were £43.1 million in H1 2023, 33% below the £64.0 million achieved in H1 2022. 

 

£m	H1 2023	H1 2022
Bioprocessing/commercial development	40.6	57.3
Licence fees, milestones & royalties	2.5	6.7
Revenue	43.1	64.0

 

Revenues from bioprocessing/commercial development were 29% lower in H1 2023 as compared to H1 2022, largely due to the non-recurrence of revenues from the manufacturing of vaccine batches for AstraZeneca. This was partly offset by a double digit increase in revenues from lentiviral vector as well as AAV commercial development and manufacturing activities performed on behalf of the Group's existing clients.

 

Revenues from licence fees, milestones and royalties have decreased compared to the prior year due to a generally lower level of milestones achieved from existing clients and license fees from new clients, as compared to H1 2022.

 

 

Operating EBITDA

 

£m	H1 2023	H1 2022
Revenue	43.1	64.0
Other operating income	1.4	0.9
Gain on sale of property	0.5	-
Total expenses1	(78.7)	(70.7)
Operating EBITDA	(33.7)	(5.8)
Depreciation, amortisation, share option charge and fair value adjustments of available-for-sale assets	(17.0)	(13.4)
Operating loss	(50.7)	(19.2)

 

¹ Cost of goods plus research, development, bioprocessing and administrative expenses excluding depreciation, amortisation and share option charge. A reconciliation to GAAP measures is provided on page 12.

 

Total expenses in H1 2023 were £78.7 million, compared with £70.7 million in H1 2022, a 11% increase over H1 2022. The increase was driven by the full six month impact in H1 2023 of the consolidation of the results of Oxford Biomedica Solutions, acquired during March 2022, as well as inflationary increases.

 

As a result of the lower revenues and increased operational spend, the Operating EBITDA loss in H1 2023 was £33.7 million, £27.9 million higher than the prior period (H1 2022 Operating EBITDA loss of £5.8 million).

 

 

Total expenses

 

In order to provide the users of the accounts with a more detailed explanation of the reasons for the period-on-period movements of the Group's operational expenses included within Operating EBITDA, the Group has added together cost of goods, research and development, bioprocessing and administrative costs and has removed depreciation, amortisation and the share option charge as these are non-cash items which do not form part of the Operating EBITDA alternative performance measure. As Operating profit/(loss) is assessed separately as a key financial performance measure, the year-on-year movement in these non-cash items is then individually analysed and explained specifically in the Operating and Net profit/(loss) section. Expense items included within Total Expenses are then categorised according to their relevant nature with the year-on-year movement explained in the second table below:

 

£m	H1 2023	H1 2022
Research and development costs1	31.4	27.3
Bioprocessing costs1 2	30.3	12.4
Administrative expenses1	12.9	16.5
Operating expenses	74.6	56.2
Depreciation, amortisation & share option charge	(17.0)	(13.4)
Adjusted operating expenses	57.6	42.8
Cost of Sales	21.1	27.9
Total expenses1	78.7	70.7

 

¹ Includes operational expenditure for Oxford Biomedica Solutions for the full six months as opposed to from March onwards during 2022.

² Bioprocessing costs have increased from the prior period due to the lower recovery of batch manufacturing costs which is also reflected in decreased cost of goods in H1 2023.

 

The table below shows total expenses by nature (excluding depreciation, amortisation and other non-cash items):

 

£m	H1 2023	H1 2022
Raw materials, consumables and other external bioprocessing costs	15.9	15.8
Personnel-related	47.1	40.4
External R&D expenditure	1.5	1.9
Due diligence costs	-	5.1
Other costs	14.2	7.5
Total expenses	78.7	70.7

 

Raw materials, consumables and other external bioprocessing costs have increased slightly as a result of a higher number of lentiviral vector batches manufactured in H1 2023 as compared to H1 2022. Personnel related costs are higher due to the full six month impact of payroll costs of employees acquired as part of the acquisition of Oxford Biomedica Solutions in March 2022. External R&D expenditure was lower as a result of a lower level of research and development project spend incurred in the platform division. Due diligence costs relate to the establishment of Oxford Biomedica Solutions during 2022. Other costs have increased compared to H1 2022 due to the full six month impact of the expenditure of Oxford Biomedica Solutions, foreign exchange losses of £0.5 million (H1 2022: £2.4 million gain), and inflationary increases in the administrative and facility expenditure.

 

 

Operating profit/(loss) and net profit/(loss)

 

£m	H1 2023	H1 2022
Operating EBITDA1	(33.7)	(5.8)
Depreciation, amortisation and share option charge	(17.0)	(13.4)
Operating loss	(50.7)	(19.2)
Financing	(1.7)	(8.2)
Taxation	(0.3)	(0.2)
Net loss	(52.7)	(27.6)

¹ Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, fair value adjustments of assets at fair value through profit and loss, and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided above.

 

In arriving at the Operating loss, the Operating EBITDA loss of £33.7 million was further impacted by depreciation, amortisation and the share option charge.

 

Depreciation and amortisation increased by £3.6 million mainly due to Oxford Biomedica Solutions' fixed assets and intangible asset depreciation and amortisation for the full six month period as opposed to the period from when they were acquired. The share option charge remained relatively stable compared to the prior period.

 

The impact of these charges resulted in an operating loss of £50.7 million in the first half of 2023 compared to a loss of £19.2 million in the prior year's corresponding period.

 

The finance charge decreased by £6.6 million mainly due to foreign exchange gains of £1.7 million as opposed to foreign exchange losses of £4.9 million on the Oaktree loan in H1 2022, an increase in interest received of £2.2 million due to improved interest rates on cash balances held by the Group but offset by a £2.1 million increase in IFRS 16 interest on the lease liabilities related to the Group's Boston and Windrush Court facilities.

 

The corporation tax expense which is based on the notional tax charge on the RDEC tax credit, included within research and development costs, has increased due to the increase in corporation tax rates, as well as an increase in the expected RDEC tax credit.

 

Other Comprehensive Income

The Group recognised a loss on other comprehensive income in H1 2023 of £4.6 million (2022: £10.8 million gain) in relation to movements on the foreign currency translation reserve. 

 

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, including gains arising from monetary items that in substance form part of the net investment in foreign operations. 

 

 

Segmental analysis

 

The Group reports its results within two segments, namely the "Platform" segment which includes the revenue generating bioprocessing and process development activities for third parties, and internal technology projects to develop new potentially saleable technology, improve the Group's current processes and bring development and manufacturing costs down. The other segment, "Product", includes the costs of researching and developing new product candidates.

 

H1 2023

 

£m	Platform	Product	Total
Revenues	43.0	0.1	43.1
Operating EBITDA1	(28.7)	(5.0)	(33.7)
Operating loss	(44.6)	(6.1)	(50.7)

 

H1 2022

 

£m	Platform	Product	Total
Revenues	64.0	0.0	64.0
Operating EBITDA1	(0.8)	(5.0)	(5.8)
Operating loss	(13.2)	(6.0)	(19.2)

 

1  Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, fair value adjustments of assets at fair value through profit and loss, and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided on page 14.

 

Revenues from the platform segment decreased when compared to H1 2022 due to the non-recurrence of vaccine batches manufactured for AstraZeneca, partly offset by higher lentiviral and AAV manufacturing volumes.  Operating results were negatively impacted by the lower revenues as well as Oxford Biomedica Solutions' operational expenditure for the full six months as opposed to, in 2022, the period since they were acquired.

 

Revenues from the product segment were higher due to an increased level of clinical development activities for clients. Product operating expenses were higher due to increased research, development and preclinical product expenditure, but also increased manpower costs. The Group has concluded the review of strategic options for its product portfolio and, in line with its strategy to become a pure-play CDMO, has decided to discontinue work on internal product development from the second half of 2023. No material costs associated with the Product segment are expected to be carried by the Group post 2023.

 

In 2023 the Senior Executive Team re-assessed the reporting segments to reflect the way the business will be managed in future. Management reporting is currently being reworked to align with these new segments and the Group expects to be able to report on these new segments during H2 2023 and thereafter. No changes from the current basis have been reflected in these Interim financial statements.

 

Cash flow

 

£m	H1 2023	H1 2022
Operating loss	(50.7)	(19.2)
Depreciation, amortisation and share option charge	17.0	13.4
Operating EBITDA1	(33.7)	(5.8)
Working capital	24.8	(19.3)
R&D tax credit received	3.5	0.6
Cash consumed in operations	(5.4)	(24.5)
Interest received less paid/(paid less received)	0.1	(1.7)
Capital expenditure	(4.9)	(6.0)
Cash burn	(10.2)	(32.2)

1  Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, fair value adjustments of assets at fair value through profit and loss, and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided on page 14.

 

Operating losses for the first six months of 2023 were £31.5 million higher than the £19.2 million loss incurred in H1 2022. The positive inflow from working capital was mainly as a result of the decrease in trade and other receivables due to amounts received from clients outstanding as at December 2022. The 2021 RDEC tax credit was received in January 2023. Interest was received as opposed to paid (H1 2022) due to improved interest rates on cash balances held by the Group offset by increased IFRS 16 interest due on the lease liability related to the Group's Boston and Windrush Court facilities. Capital expenditure decreased by £1.1 million compared to H1 2022 due mainly to lower levels of purchasing of bioprocessing and laboratory equipment. 

 

Statement of financial position

 

The most notable items on the Statement of financial position, including changes from 31 December 2022, are as follows:

 

Non-current assets - Intangible assets and goodwill decreased from £105.9 million to £97.9 million due to amortisation of £3.6 million and foreign exchange movements of £4.4 million. Property, plant and equipment decreased from £133.8 million to £120.6 million due to disposals of property of £7.1 million, depreciation of £11.2 million, foreign exchange movements of £2.6 million, offset by capital expenditure of £8.2 million on mainly plant and equipment.

 

Current assets - Inventories increased slightly to £13.5 million from £12.6 million at 31 December 2022, mainly as a result of inventory purchased in preparation of the expected increased bioprocessing activities in the second half of 2023. Trade and other receivables have decreased by £26.9 million mainly as a result of the receipt of amounts outstanding from clients as at December 2022, but also lower levels of un-invoiced client work as compared to year end.

 

Current liabilities - Trade and other payables have decreased from £36.6 million at the start of the year to £26.2 million due to lower levels of client and other operational activities leading to lower levels of accruals and trade creditors outstanding. Contract liabilities have increased by £4.1 million due to the invoicing of orders received in advance for the goods and services being provided by the Group. Lease liabilities increased by £0.4 million as the recognition of the lease liability on our Harrow House facility more than offset lease payments during the period. Deferred income decreased due to the recognition of grant income related to production capacity expansion.

 

Non-current liabilities - Provisions increased by £0.5 million as a result of the recognition of a liability for the costs of restoring the newly leased Harrow House manufacturing facility to its original state at the end of the lease term. Contract liabilities have increased by £4.5 million due to the invoicing of orders received in advance for the goods and services being provided by the Group. The put option liability to acquire the remaining 20% of Oxford Biomedica Solutions that the Group doesn't already own has decreased from £38.2 million at 31 December 2022 to £20.3 million at the end of June 2023 due to a decrease in the value at which the option is expected to be exercised.

 

The Group's cash resources at 1 January 2023 were £141.3 million. Cash used in operations was £5.4 million. which includes £3.5 million RDEC tax credit received.  Other significant cash flows were £4.4 million received from the sale of Harrow House facility, £4.9 million of capex expenditure, £5.3 million of lease liability payments and a negative impact from exchange rates on cash balances held of £1.3 million. The cash balance at 30 June 2023 was £129.4 million with a net cash position of £90.1 million.

 

Post balance sheet event

 

Homology Medicines Inc. strategic update

As a result of Homology Medicines Inc. announcing an update on their business, including strategic alternatives in July 2023, the Group will perform an impairment review for the Oxford Biomedica Solutions' CGU as at 31 December 2023 to assess any potential impairment of the intangible assets and fixed assets of the CGU during H2 2023. Any resultant impairment charge will be booked in the December 2023 year-end financial statements.

 

Potential transaction to acquire ABL Europe

Oxford Biomedica has entered into exclusive negotiations for the proposed acquisition of ABL Europe SAS.  Terms of the proposed transaction would include a consideration of €15million, (including the value of £8.6 million (€10 million) of pre-completion cash funding in ABL Europe from Institut Mérieux), in exchange for Oxford Biomedica shares. In addition, Institut Mérieux would also commit to provide Oxford Biomedica with £17.2 million (€20 million) of additional funding, to cover capex and potential future operating losses, in exchange for new Oxford Biomedica shares.

 

In addition, under the proposed transaction, Institut Mérieux would further build its ownership of Oxford Biomedica by acquiring up to £8.6 million (€10 million) of additional Oxford Biomedica existing ordinary shares in the market from the date of this announcement to 31 March 2024. Institut Mérieux intends to build its ownership of Oxford Biomedica shares through purchases in the open market so as to reach, in aggregate, approximately 10 per cent of the Company's enlarged issued share capital.

 

 

Financial outlook

 

 

Oxford Biomedica is reorganising its business as it finalises its transformation towards a pure-play cell and gene therapy CDMO. As part of this transformation the Group is expected to incur a one-off restructuring cost of c.£10 million in the second half of 2023. The Group has concluded the review of strategic options for its therapeutics products portfolio and spend on therapeutic products will be ceased during H2 2023. In addition, there will be a streamlining of the organisational structure and adopting of a more client-focused R&D strategy.

 

Group revenues for 2023 are expected to be approximately £90 million, below current market expectations due to lower milestone and license payments than previously expected, and reduced or delayed bioprocessing orders from clients. Significant revenue growth is expected in 2024 vs. 2023, driven by high levels of business development activity. This includes existing client programmes progressing through development and the acquisition of new clients, notwithstanding a slowdown in the biotech funding environment.

 

The Group has a high level of visibility over revenues for the remainder of 2023 with more than 90% of forecasted revenues for the second half of the year covered by existing binding purchase orders and rolling client forecasts. The Group's revenue backlog at 30 June 2023 stood at £95 million; this is the amount of future revenue available to earn from current orders. The Group expects to grow this backlog significantly going forward based on high levels of business development activity driving new client acquisition, as well as orders from existing clients. The strong execution and delivery of commercial strategy gives strong visibility in and confidence in 2024 revenue growth.

 

Whilst the outcome of Homology's strategic review is not yet known, the Group expects Homology to remain a client of the Group with contracted revenues for the remainder of 2023; and is prudently assuming that no further revenues are expected from 2024 onwards. Homology remains well capitalised with cash and short term investments of £100.8 million ($127.1 million) as of 30 June 2023. In addition, they recently reported encouraging data from their Phase I trial evaluating gene editing candidate HMI-103 in adults with PKU. 

 

The Operating EBITDA loss (after restructuring costs) for the second half of 2023 is expected to be approximately £10 million better than the first half. As a result of business transformation and cost reductions completed in 2023, the ongoing cost base from 2024 is anticipated to be reduced by c.£30m on an annualised basis compared to 2023.

 

Capex levels are expected to be similar in the second half of 2023 to the first half of 2023 with the Group taking a cautious approach to planning significant new projects.

 

With a strong cash position of £121.4 million and a net cash position of £83.0 million as at 31 August 2023, the Group is well financed.

 

Medium term guidance

 

In 2024 and beyond, the Group expects to continue to grow lentiviral vector and AAV manufacturing and development revenues through the successful development of existing client relationships and the continued targeting of new client relationships. Further, the group is already accelerating towards broadly breakeven Operating EBITDA by the end of 2024 with a leaner cost base and positive momentum in business development activities, including growth in both orders and pipeline.

 

Building on its leading position in lentiviral vectors, the Group aims to ultimately have a market leading position in the viral vector outsourced supply market across all key vector types. The Group aims to achieve three-year revenue CAGR in excess of 30%, and at least a doubling of revenues by the end of 2026 from the approximately £90 million being indicated for 2023, with this growth being maintainable into the longer term. This will be supported by the strength of the Group's revenue backlog, growing pipeline of potential new business opportunities, and the progress being made by the newly expanded business development team and the new commercial strategy.

 

With increased operational efficiencies, targeted cost management, and targeted investment the Group aims to achieve Operating EBITDA margins in excess of 20% by the end of 2026.

 

Financial impact from the potential transaction to acquire ABL Europe announced today is excluded from mid-term guidance pending completion of the transaction.

 

Finally, management reporting for the financial year 2023 will reflect the Group's new structure as a pure-play CDMO. Future guidance is anticipated to be split by the new reporting segments.

 

Principal risks and uncertainties

 

Risk assessment and evaluation is an integral and well-established part of the Group's management processes. The Group's management framework incorporates the implementation of a mitigation strategy, each tailored to the specific risk in question.  Details of our principal risks and uncertainties can be found on pages 64 to 68 of the 2022 Annual report & accounts which is available on the Group's website at www.oxb.com. A summary of these risks is provided below. We have seen increased risk with regards to the execution of the business plan for Oxford Biomedica Solutions, and the risks associated with moving into the AAV sector, and a decrease in product liability risk as a result of the Group discontinuing product development. The remaining risks have been assessed not to have changed materially.  

 

Commercialisation risks

·      Failure or delays in the execution of the business plan for Oxford Biomedica Solutions

·      Risks associated with the move into the AAV sector

·      Discontinuation of product development by collaborators and partners

·      Unable to keep up with rapid technological changes

 

Supply chain and business execution risks

·      Failure of key third party suppliers

·      Bioprocessing failures

·      Cyber attacks

·      Failure to attract, develop and retain talented and capable workforce

 

Legal, regulatory and compliance risks

·      Adverse outcomes of litigation; governmental; or regulatory inspections

·      Infringement of IP and patents

 

Economic and financial risks

·      Impacts of climate change

·      Exposure to foreign currency fluctuations

·      Claims from product liability

·      Impacts from the war in Ukraine and COVID-19

 

 

Going concern

 

The financial position of the Group, its cash flows and liquidity position are described in the primary statements and notes to these interim financial statements.

 

The Group made a loss for the period ended 30 June 2023 of £52.7 million, consumed net cash flows from operating activities of £5.4 million, and ended the period with cash and cash equivalents of £129.4 million. The Group sold its Harrow House facility in a sale and leaseback transaction for £4.5 million to Kadans, whilst also agreeing an occupational lease of the property for 15 years. In considering the basis of preparation of the Interim financial statements, the Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements, based in the first instance on the Group's 2023 latest view,, and forecasts for 2023 and 2024. The Directors have undertaken a rigorous assessment of the forecasts in a base case scenario and assessed identified downside risks and mitigating actions.

 

These cash flow forecasts also take into consideration severe but plausible downside scenarios including:

 

·      Commercial challenges leading to a substantial manufacturing and development revenue downside affecting both the LentiVector® platform and AAV businesses;

·      No revenues from new customers;

·      Decreases in forecasted existing customer milestones and removal of any future license revenues, and

·      The potential impacts of a recession on the Group and its customers including expected revenues from existing customers under long term contracts.

 

Under both the base case and mitigated downside scenario, the Group and parent company has sufficient cash resources to continue in operation for a period of at least 12 months from the date of approval of these financial statements.

 

In the event of the downside scenarios crystallising, the Group would continue to meet its existing loan covenants until December 2024 without taking any mitigating actions, but the Board has mitigating actions in place that are entirely within its control that would enable the Group to reduce its spend within a reasonably short time-frame to increase its cash covenant headroom as required by the loan facility with Oaktree Capital Management.

 

The Board has confidence in the Group's ability to continue as a going concern for the following reasons:

·      As noted above, the Group has cash balances of £129.4 million at the end of June 2023, and £121.4 million at the end of August 2023;

·      More than 90% of 2023 forecasted revenues are covered by binding purchase orders and rolling customer forecasts which give confidence in the level of revenues forecast over the next 12 months; and

·      The Group's history of being able to access capital markets including raising £77.0 million of equity during 2022;

·      The Group's history of being able to obtain loan financing when required for purposes of both capital expenditure and operational purposes, as recently evidenced by the US$85 million one-year facility and US$50 million replacement four-year facility obtained with Oaktree;

·      The Group intends to delay the construction element of its OXBOX manufacturing facility expansion to now take place during 2028 and 2029;

·      The completion of the potential transaction to acquire ABL Europe is subject to successful completion of due diligence, regulatory approvals and final Board approval. The Board of Oxford Biomedica do not intend to approve the transaction if it is expected to materially impact our ability to continue as a going concern;

·      The Group's ability to continue to be successful in winning new customers and building its brand as demonstrated by successfully entering into new customer agreements including with Arcellx, Cargo Therapeutics and Oxford University over the last 6 months;

·      The Group has the ability to control capital expenditure costs and lower other operational spend, as necessary.

 

Taking account of the matters described above, the Directors remain confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Consolidated Statement of Comprehensive Expense

for the six months ended 30 June 2023

 

		Six months ended 30 June 2023 Unaudited	Six months ended 30 June 2022 Unaudited
	Notes	£'000	£'000
Revenue		43,061	64,027
Cost of sales		(21,122)	(27,899)
Gross profit		21,939	36,128
Bioprocessing costs		(30,314)	(12,383)
Research and development costs		(31,417)	(27,310)
Administrative expenses		(12,838)	(16,479)
Other operating income		1,402	925
Gain on sale and leaseback		472	-
Change in fair value of available-for-sale asset		8	(38)
Operating loss		(50,748)	(19,157)
Finance income		2,217	50
Finance costs	6	(3,813)	(8,277)
Loss before tax		(52,344)	(27,384)
Taxation		(317)	(250)
Loss for the period		(52,661)	(27,634)
Other comprehensive (expense)/ income
Foreign currency translation differences		(4,640)	10,825
Other comprehensive (expense)/ income for the period		(4,640)	10,825
Total comprehensive expense		(57,301)	(16,809)
Loss attributable to:
Owners of the Company		(47,956)	(25,483)
Non-controlling interests		(4,705)	(2,151)
		(52,661)	(27,634)
Total comprehensive (expense)/income attributable to:
Owners of the Company		(51,349)	(17,419)
Non-controlling interests		(5,952)	610
		(57,301)	(16,809)
Basic and diluted loss per share	5	(49.74p)	(27.29p)

 

 

 

The notes on pages 20 to 41 form part of this financial information.

 

 

 

Consolidated Statement of Financial Position

as at 30 June 2023

 

	Notes	30 June 2023 Unaudited £'000	31 December 2022 Audited £'000
Assets
Non-current assets
Intangible assets & Goodwill	7	97,884	105,886
Property, plant and equipment	8	120,554	133,780
Trade and other receivables	10	4,931	5,010
		223,369	244,676
Current assets
Inventory	9	13,542	12,625
Assets held for sale		31	23
Trade and other receivables	10	34,693	61,571
Cash and cash equivalents	11	129,430	141,285
		177,696	215,504
Current liabilities
Trade and other payables	12	26,208	36,579
Contract liabilities		22,469	18,370
Deferred income		681	894
Lease liabilities	13	3,666	3,295
Deferred tax liabilities		506	525
		53,530	59,663
Net current assets		124,166	155,841
Non-current liabilities
Lease liabilities	13	71,047	71,206
Loans	14	38,436	39,780
Provisions	15	8,954	8,424
Contract liabilities		4,600	76
Deferred income		1,032	1,069
Put option liability	16	20,270	38,182
Deferred tax liabilities		5,040	5,588
		149,379	164,325
Net assets		198,156	236,192
Shareholders' equity
Share capital	17	48,260	48,132
Share premium	17	380,247	379,953
Other reserves		(11,970)	(24,887)
Accumulated losses		(244,428)	(198,545)
Equity attributable to owner of the Company		172,109	204,653
Non-controlling interests	19	26,047	31,539
Total equity		198,156	236,192

 

 

The notes on pages 20 to 41 form part of this financial information.

Consolidated Statement of Cash Flows

for the six months ended 30 June 2023

 

	Notes	Six months ended 30 June 2023 Unaudited £'000	Six months ended 30 June 2022 Unaudited £'000
Cash flows from operating activities
Cash consumed in operations	18	(8,916)	(25,069)
Tax credit received		3,502	558
Net cash used in operating activities		(5,414)	(24,511)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired		-	(99,206)
Purchases of property, plant and equipment	8	(4,854)	(6,009)
Proceeds on disposal of property, plant and equipment		4,420	35
Interest received		2,217	50
Net cash generated from/ (used in) investing activities		1,783	(105,130)
Cash flows from financing activities
Proceeds from issue of ordinary share capital		422	80,082
Costs of share issues		-	(2,952)
Interest paid		(2,094)	(1,732)
Loan arrangement fees		-	(2,205)
Payment of lease liabilities		(2,222)	(1,484)
Payment of lease liabilities interest		(2,999)	-
Loans received		-	64,866
Net cash (used in)/generated from financing activities		(6,893)	136,575
Net (decrease)/ increase in cash and cash equivalents		(10,524)	6,934
Cash and cash equivalents at 1 January 2023		141,285	108,944
Movement in foreign currency balances		(1,331)	2,632
Cash and cash equivalents at 30 June 2023	11	129,430	118,510

 

 

The notes on pages 20 to 41 form part of this financial information.

 

Statement of Changes in Equity Attributable to Owners of the Parent

for the six months ended 30 June 2023 (Unaudited)

 

	Share capital £'000		Share     premium £'000		Merger reserve £'000		Other Equity £'000		Translation reserve £'000	Accumulated Losses £'000	Total £'000	Non- Controlling Interest £'000		Total Equity £'000				NCI
At 1 January 2022	43,088		307,765		2,291		-		-	(165,806)	187,338	-		187,338
Six months ended 30 June 2022:
Loss for the period	-		-		-		-		-	(25,483)	(25,483)	(2,151)		(27,634)
Other comprehensive income	-		-		-		-		8,064	-	8,064	2,761		10,825
Total comprehensive expense for the period	-		-		-		-		8,064	(25,483)	(17,419)	610		(16,809)
Transactions with owners:
Share options
Proceeds from shares issued	12		75		-		-		-	(4)	83	-		83
Value of employee services	-		-		-		-		-	1,959	1,959	233		2,192
Issue of shares excluding options	4,938		75,062		-		-		-	-	80,000	-		80,000
Costs of share issues	-		(2,952)		-		-		-	-	(2,952)	-		(2,952)
Total contributions	4,950		72,185		-		-		-	1,955	79,090	233		79,323
Changes in ownership interests:
Acquisition of subsidiary with NCI (Note 19)	-		-		-		-		-	-	-	48,418		48,418
Acquisition of NCI without change in control	-		-		-		-		-	11,279	11,279	(11,279)	-	-
Recognition of put option	-		-		-		(38,996)		-	-	(38,996)	-		(38,996)
Revaluation of put option	-		-		-		740		-	-	740	-	7	740
At 30 June 2022	48,038		379,950		2,291		(38,256)		8,064	(178,055)	222,032	37,982		260,014
Six months ended 31 December 2022:
Loss for the period	-		-		-		-		-	(13,674)	(13,674)	(3,851)		(17,525)
Other comprehensive expense	-		-		-		-		(239)	-	(239)	(11)		(250)
Total comprehensive expense for the period	-		-		-		-		(239)	(13,674)	(13,913)	(3,862)		(17,775)
Transactions with owners:
Share options
Proceeds from shares issued	94		3		-		-		-	(25)	72	-		72
Value of employee services	-		-		-		-		-	3,963	3,963	316		4,279
Deferred tax on share options	-		-		-		-		-	125	125	-		125
Total contributions	94		3		-		-		-	4,063	4,160	316		4,476
Changes in ownership interests:
Acquisition of subsidiary with NCI (Note 19)	-		-		-		-		-	-	-	(13,776)		(13,776)
Acquisition of NCI without change in control	-		-		-		-		-	(10,879)	(10,879)	10,879	-	-
Put Option recognition	-		-		-		(740)		-	-	(740)	-	7	(740)
Revaluation of put option	-		-		-		3,993		-	-	3,993	-	7	3,993
At 31 December 2022	48,132		379,953		2,291		(35,003)		7,825	(198,545)	204,653	31,539	236192	236,192
At 1 January 2023
Six months ended 30 June 2023:
Loss for the period	-		-		-		-		-	(47,956)	(47,956)	(4,705)		(52,661)
Other comprehensive expense	-		-		-		-		(3,393)	-	(3,393)	(1,247)		(4,640)
Total comprehensive expense for the period	-		-		-		-		(3,393)	(47,956)	(51,349)	(5,952)		(57,301)
Transactions with owners:
Share options
Proceeds from shares issued	128		294		-		-		-	-	422	-		422
Value of employee services	-		-		-		-		-	2,073	2,073	460		2,533
Total contributions	128		294		-		-		-	2,073	2,495	460		2,955
Changes in ownership interests:
Revaluation of put option	-		-		-		16,310		-	-	16,310	-		16,310
At 30 June 2023	48,260		380,247		2,291		(18,693)		4,432	(244,428)	172,109	26,047		198,156

The notes on pages 20 to 41 form part of this financial information.