Allergy Therapeutics

Annual report and accounts delayed, shares suspended

Lighthouse | 29 December 2022

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  • Allergy Therapeutics has announced that it will not be able to publish its annual report and accounts for FY June 2022 by 31 December 2022. This follows delays in completing the audit for the period, although no reason for the delay has been given. Unaudited FY22 results had been presented on 29 September and management states it is not aware of any reasons for there to be material changes to those results.
  • At the beginning of October management announced a short term voluntary pause in manufacturing at a facility within its Worthing (UK) plant. At the end of October it was announced manufacturing would recommence mid-November, and the impact of this would decrease revenues for FY June 2023 by 13% to 18% vs consensus at that time, implying revenues of c £66-70m. The reduced revenues are somewhat offset by anticipated cost savings of c £3m, mostly related to S&M and non-core activities. Based on our last published forecasts, we did not expect Allergy Therapeutics to deliver an operating profit pre-R&D in either FY23 or FY24.
  • Cash resources at end June-2022 of £20.5m were subsequently bolstered by c £17m (gross) through £7m in equity and £10m in debt, with the purchase date for the loan notes not expected until 28 February 2023. However, the temporary pause in production has led to the need for significant additional near-term funding. Management has reiterated that it is actively reviewing all options and is in active discussions on funding. An update will be made in due course.
  • Allergy Therapeutics will be suspended from trading from 7.30am on 3 January 2023. In view of this, we suspend our forecasts and valuation.

Trinity Delta view: The announcement of the suspension of share trading prompts us to suspend our Allergy Therapeutics forecasts and valuation with immediate effect. We intend to reinstate these as soon as practicable pending future regulatory updates on listing status and greater insight from management.

Lighthouse

29 December 2022

Price5.70p
Market Cap£38.7m
Primary exchangeAIM
SectorHealthcare
Company CodeAGY
Corporate clientYes

Company description

Allergy Therapeutics specialises in the diagnosis and treatment of allergy. The existing European business generates c £80m annual sales. Near-term R&D efforts are focused on the Pollinex Quattro platform, whilst in the medium-term the VLP platform is highly promising.

Analysts

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Philippa Gardner
pgardner@trinitydelta.org
+44 (0) 20 3637 5042

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