Goodbody Health Inc (AQSE:GBDY, CSE:GBDY, OTC:SCNNF) broke into the black in 2021 as it diversified into testing clinics, with revenue and gross profit 755% and 695% higher respectively.
The wellness products and services group announced an underlying profit (adjusted EBITDA) of £0.48mln for the past calendar year, compared to a £3.27mln loss the year before, as revenue surged to £17.06mln from £1.99mln.
A comprehensive net loss of £2.14mln was reported, down from £4.51mln, mainly due to impairment to the StillCanna reverse takeover in 2020, with impairments to Polish goodwill, intangibles and farming equipment no longer in regular use.
Management said the strong top line growth and operational developments led to a cautious approach being taken to goodwill and intangibles impairments, which were due to lower-than-expected revenues in Poland and potential risks associated with the potential impact of war in Ukraine, while there were also £0.3mln of net unrealised currency losses on intercompany loans and translation adjustments.
The company said it had 140 clinics and 32 product tests by December’s year end, having achieved its diversification ambitions through rolling out of additional testing clinics and the range of tests offered, from Covid traveller and antibody tests, to diabetes, cholesterol and genome tests.
It said it 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”.
CBD-related revenue underperformed during 2021, which the board said supported its decision to diversify revenues, though since the year-end Goodbody CBD products were listed on the FSA novel food list.
Elsewhere the Polish subsidiary achieved ISO22000 accreditation as well as HACCP, GO and GHP for safe food manufacturing, while UK CBD and hemp testing specialist Phytovista Laboratories was granted its ISO accreditation during the year and since year end has been granted a Home Office licence to handle controlled substances.
Executive chairman Geremy Thomas said: “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.”