LONDON: MyHealthChecked PLC (AIM: MHC), the consumer home-testing healthcare company, announced that it has agreed the conditional sale of the Group’s trading subsidiary Concepta Diagnostics Limited to Boots UK Limited for a total consideration of £2.375 million.
Concepta distributes and commercialises a range of at-home healthcare and wellness tests and has developed an accompanying proprietary digital platform. The Company has worked closely with Boots to develop its wellness portfolio and digital offering since its launch in May 2023 and has developed the platform to meet Boots’ requirements since the relationship began in May 2021.
Upon completion the company is expected to become an AIM Rule 15 cash shell with (unaudited) cash balances of approximately £5.7 million, after deducting all expenses and costs associated with the Disposal.
The Board will carefully consider the strategic options available in order to maximise Shareholder value. As the Chairman has experience in utilising cash shells to acquire growing businesses, with a demonstrable record of increasing shareholder value, this will include reviewing acquisition opportunities in a variety of sectors as well as considering a return of cash to Shareholders.
Commenting on Outlook Penny McCormick, Chief Executive Officer of MyHealthChecked PLC, said: “Although positive long-term growth is a realistic expectation for wellness testing, the value potential can only be realised via distribution through a variety of services; testing embedded as part of a wider healthcare ecosystem; and the evolution of healthcare driven by government policy.
“During this past year, operational costs have not been offset by COVID sales, demand for which has declined significantly, and despite growth in the sales of wellness tests and tight cost controls, the loss for H1 of the current year has been broadly comparable to the prior year.
“We have regularly updated Shareholders throughout the development of a longstanding working relationship with Boots, which has potential to be a significant player in the growth of home testing. As we look to the future, we have identified Boots as the right partner to take forward the MHC portfolio and drive home-testing as part of a wider range of healthcare services. As an organisation with deep retail product knowledge and pharmacy expertise, the board identified from the onset that a partnership with a trusted brand, with digital reach and a bricks and mortar footprint would be essential in leading the way in growing the sector. It is also clear that our digital platform supports long-term growth potential by underpinning the end-to-end customer journey, which firmly places testing as part of a wider service and product offering and builds a longer-term relationship with the end customer.
“This is a very exciting time for consumer healthcare in the UK, and we are delighted that our trusted portfolio and digital platform have been identified as an enabler in the drive to offer meaningful health services in the future.”