Celadon Pharmaceuticals (CEL) H2 2023 earnings summary

Executive summary

• Achieved first commercial supply of pharma-grade cannabis in December 2023, with revenue of £75k for the year ended 31 December 2023, up from £24k in 2022.

• Operating loss increased to £5,931k (2022: £5,381k) due to scaling operations and higher R&D spending.

• Loss before tax reduced significantly to £7,523k (2022: £18,118k), reflecting lower transaction costs and fewer non-cash adjustments.

• Entered three sales contracts in 2023, expected to generate ~£10m annual revenue; multiple LOIs in negotiation.

• Over £30m capital raised to date, including £5.1m since October 2023, and secured a £7m revolving credit facility.

Financial highlights

• Revenue rose to £75k (2022: £24k) with first product supply in December 2023.

• Operating costs increased to £5,472k (2022: £4,849k) due to expansion and R&D.

• Cash at year-end was £1,259k, down from £5,061k in 2022.

• Basic and diluted loss per share improved to (11.5p) from (29.7p) year-over-year.

• Significant non-cash items in 2022 included £11.3m related to Vertigrow acquisition and AIM readmission.

Outlook and guidance

• Anticipates £1m+ annual revenue from initial contracts, with a third contract expected to add ~£10m per year.

• Facility expansion ongoing; Phase 2 construction completed and fit-out underway.

• Planning to roll out CANPAIN trial for up to 5,000 chronic pain patients, seeking partnerships.

• Exploring further opportunities to accelerate revenue growth.