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Medicinal cannabis investor Sativa Investments turns maiden gross profit

In its first year as a listed company, Sativa generated revenue of £260,000, which translated into a gross profit of £110,000
cannabis
All of the revenue came from Sativa’s two UK businesses, George Botanicals and Phytovista

Medicinal cannabis investor Sativa Investments PLC (NEX:SATI) turned a gross profit of £110,000 in 2018 – its first year as a listed company.

The company, which has investments in five cannabis companies around the world, joined the NEX Growth Market at the end of March last year.

In the 12 months to the end of December, Sativa reported turnover of £260,000, all of which came from its two UK ventures, George Botanicals and Phytovista.

READ: Sativa proposes name change

Gross profit for the period totalled £110,000, representing a gross margin of 42%.

The adjusted underlying loss (LBITDA) came in at £1.08mln, with the bulk of that relating to wages as Sativa builds a strong management team to drive future growth.

Among those to join is Alasdair Breckenridge, the former chairman of Medicines and Healthcare Products Regulatory Agency (MHRA), who now chairs Sativa’s medical advisory board.

A few fundraises during the course of the year has topped up the company’s coffers, with cash at hand ending the year at £3.74mln, which bosses said put them in a “strong position” to invest further into its businesses.

First wellness centre to open shortly

Looking ahead, Sativa is planning to open its first Goodbody & Blunt wellness centre in Bath in early summer.

The centre will sell a range of white label CBD products made by George Botanicals and other suppliers, all of which will be tested by Phytovista.

“Sativa has delivered expeditiously on its investment promise to the market and is now recognised as a trading business, with two fully owned UK subsidiaries already performing well,” said founder and chief executive Geremy Thomas.

“This early stage traction within the marketplace proves the Group's ability to deliver revenue-generating operations that benefit from first-mover advantage.”

He added: “The medicinal cannabis and CBD industries are highly complex and the twelve months of global research that I undertook before Sativa joined the NEX Exchange is paying off. Focussing on the high-margin value-add components of the seed to consumer chain is key, as is proximity to the end user.”

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