Goodbody Health Inc. Publishes 2021 Audited Financial Statements

VANCOUVER, BC / ACCESSWIRE / May 3, 2022 / Goodbody Health Inc. (CSE:GDBY) (OTCQB:GDBYF) (“Goodbody Health” or the “Company“) is pleased to announce today a positive adjusted EBITDA of £0.48 million (C$0.83m) in its audited Financial Statements for the year to 31 December 2021. The Company has filed the Financial Statements and Management’s Discussion and Analysis for year ending 2021 with strong results, especially in the second half of the year due to its growth in testing services. All amounts unless stated otherwise are presented in British Pounds (GBP).

The Company having met its ambition of diversifying within the Wellness sector through the rollout of additional testing clinics continues to expand both its clinic footprint and the range of tests offered. The Company is rapidly becoming an aggregator of innovative technology and innovative tests, including blood and genome, and is highly active in looking at novel products to enable consumers to take more control of their wellbeing.

The Company’s CBD products have successfully met the requirements of the FSA novel food list while both its Polish subsidiary and Phytovista Laboratories have achieved accreditations and registrations to support the quality agenda on the CBD side of the group. CBD related revenue during 2021 underperformed, and thus supports the Boards decision to diversify revenue opportunities.

Management have therefore taken a cautious approach to goodwill and intangibles from the StillCanna reverse takeover in 2020, posting impairments to strengthen the balance sheet going forward.

2021 Highlights:

• Revenue 755% higher than 2020. £17.06m (C$29.41m) (2020: £1.99m), £15.07m more than the previous year, making it the highest revenue year since inception, driven by the clinic testing business.
• Gross profit 695% higher than 2020. £8.93m (C$15.39m) (2020: £1.12m), £7.81m more than the previous year. The gross profit percentage margin remains strong at 52% although slightly lower than the previous year of 56%
• Adjusted EBITDA (Adjusted for non-cash items). £0.48m¹ (C$0.83m) (2020: -£3.27m), £3.75m better than the previous year.
• ISO22000 accreditation in Poland. The Polish plant achieved ISO22000 as well as HACCP, GO and GHP, all globally recognised standards for safe food manufacturing.
• Phytovista Laboratories Granted ISO Accreditation, the Group UK Laboratory, Phytovista Laboratories was granted accreditation for ISO/IEC 17025:2017, General requirements for the competence of testing and calibration laboratories.
• Two tranches of the Company’s non-brokered private placement were issued at a price of C$0.07875 per Unit of 45,888,730 Units for gross proceeds of C$3,613,737.49 and 12,701,557 Units for gross proceeds of C$1,000,247.61.
• German Distribution. A contract with Lexalife in Germany to distribute Goodbody CBD products signed.
• Online GP Service. The Introduction of an online GP service
• Superdrug. The Clinic network partnered with Superdrug to extend the offering for phlebotomy blood services.
• Clinic network. Over 140 clinics and 32 product tests by year end

The net comprehensive position improved to show a loss of £2.14m (2020: £4.51m). This loss was generated mainly by the prudent impairment of the Polish goodwill (£143k), intangibles (£467k), and farming equipment no longer in regular use (£276k). This impairment was due to lower than expected revenues in Poland and risks associated with the potential impact of war in Ukraine. Additionally, there were £309k of net unrealised currency losses on intercompany loans and translation adjustments.

Highlights Subsequent to end 2021:

• Change of name to Goodbody Health. The Company changed its name to represent a clearer view of the new broader health and wellness strategy.
• Move up to OTCQB. The company moved from OTC pinks listing to OTCQB.
• Novel Food acceptance. Goodbody CBD products were listed by the FSA on the novel food list.
• Phytovista Laboratories Granted Home Office License, the Group UK Laboratory, Phytovista Laboratories was granted a Home Office license to handle controlled substances.
• The clinic network has grown to over 200 with over 100 being supplied with Abbott machines to test for diabetes and cholesterol, giving results in less than ten minutes as well as the broader range of tests offered totalling 45.

Geremy Thomas, Executive Chairman, says; “The decision to incorporate revenue sources outside CBD has proven to be the right strategy. I am absolutely delighted by the fantastic revenues driven by strong growth and a clear strategy in the Health & Wellness Sector. We offer our customers choice and the ability to know more to live better. The NHS plan to place more emphasis on people taking more responsibility of their health will continue to focus the market on prevention rather than symptomatic diagnosis. We are very much consistent with this approach with our strategy.”

¹EBITDA has been adjusted for the following non-cash items: share based payment charges, asset impairment, and unrealised currency losses

The Financial Statements and Management Discussion and Analysis and further information regarding the Company can be found under the Company’s profile on www.sedar.com.

The Directors of the Company accept responsibility for the contents of this announcement.

On behalf of the Board of Directors,

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release. This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Goodbody Health’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” “plan is” or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur”, “will be achieved” or “shortly”. The forward-looking information and forward-looking statements contained herein include, but are not limited to; the Company becoming and aggregator of innovative technology and innovative tests; and that there are risks associated with the potential impact of war in Ukraine.

Although Goodbody Health believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. In particular, the NHS plan to place more emphasis on people taking more responsibility of their health will continue to focus the market on prevention rather than symptomatic diagnosis; and posting impairments will strengthen the balance sheet going forward.

The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and Goodbody Health does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws

SOURCE: Goodbody Health Inc.

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