Love Hemp Group PLC Announces Interim Results
Love Hemp Group PLC (OTCQB:WRHLF) reported interim results for the six months ended 31 December 2020. Gross revenue surged to £2,379,144, a remarkable 557% increase from £426,465 in the prior year. However, the company faced a pre-tax loss of £962,171, down from £9,835,551 in 2019. The firm successfully eliminated £4.5m in debt and signed a major multi-year marketing deal with the UFC, enhancing its brand visibility. New production facilities are set to boost manufacturing capacity significantly. Love Hemp's strategic adjustments signal optimism for future growth.
- Gross revenue increased 557% to £2,379,144.
- Reduced pre-tax losses from £9,835,551 to £962,171.
- Eliminated £4.5m of debt from balance sheet.
- Secured a multi-year marketing deal with UFC.
- New facilities will enable production of up to 500,000 CBD units monthly.
- Pre-tax losses of £962,171 indicate ongoing financial challenges.
- Net cash balance fell to £78,977 compared to £213,538 previous year.
LONDON, ENGLAND / ACCESSWIRE / March 31, 2021 / Love Hemp Group PLC, (LSE:LIFE) (OTCQB:WRHLF) the AQSE listed investment company with a focus on developing business opportunities in the regulated cannabis industry in Europe, is pleased to announce its interim results for the six months ended 31 December 2020.
Chairman's Statement
I am very happy to provide shareholders with this update on the progress which Love Hemp Group PLC has made, and continues to make, this year, especially given the many challenges that we have all experienced through 2020 and into 2021.
Being able to adapt and pivot the business to mitigate the impact of Covid-19 and the pandemic has demonstrated the Company's ability to be agile and resilient with an ability to move forward, even in adversity.
During the six months ending 31 December 2020 the Company undertook a strategic review that culminated in a set of corporate activities in early 2021 which included the appointment of a new Chief Executive and a change of name.
In the first half of 2020, the primary focus of World High Life (as we were then known) was to support the efforts and operations of our wholly owned subsidiary and operational company, Love Hemp Ltd (together the "Group"). This resulted in steady growth of both high street and online sales.
Our plans to roll out a global brand and begin accessing wider markets began to gather momentum as the year progressed. In line with our plans, the Company completed small financings in late 2020 and early 2021 that supported our operations. This was combined with the conversion of Convertible Loan Notes that were originally used to finance the Company from inception. Alongside this, was the issuance of the balance of equity for the completion of the acquisition of Love Hemp Ltd. These actions resulted in approximately £4.5m of debt being removed from the Company's Balance Sheet.
In February 2021, we announced that Tony Calamita, who had been one of the Founders of Love Hemp Ltd, had agreed to become Chief Executive of World High Life and in March we changed the company name to Love Hemp Group PLC. Furthermore, James Mahony was engaged as a non-board chief financial officer in February 2021.
While most of these events occurred in the early part of 2021, they were well underway through the last half of 2020. Our plans achieved a significant landmark on 15 March 2021 when Love Hemp signed a multiyear, category exclusive marketing relationship with Ultimate Fighting Championship (UFC), the world's premier mixed martial arts organisation and the largest Pay-Per-View event provider in the world. The profile that this relationship brings to the Love Hemp Group will provide access to a global marketplace.
Combining the UFC exposure opportunities alongside our existing strategies and an ever-growing retail presence should result in continued growth of the Company's sales.
Love Hemp Ltd also acquired new premises which are presently being fitted out for production, distribution and head office. It anticipated these facilities will be available from mid-2021.
We have continued with relentless focus on our strategy to deliver one of the most recognised and award winning cannabidiol (CBD) brands in the UK. Our increasing brand recognition has already opened doors and will allow the Company to look farther afield for new opportunities for profitable growth.
When we move into our new facilities in South London in mid-2021, we will have the capacity to manufacture up to 500,000 units of CBD products monthly. Building on the sales and opportunities we have before us is key to continued growth through both retail and digital/e-commerce platforms. As part of this planning, the Company has hired key marketing and operational individuals who have the ability to support our expansion plans.
We continue to make additions to our team and build out the infrastructure needed for our expansion aspirations. However, overall, I am incredibly pleased with the effort and dedication from the entire team, who continue to demonstrate their passion and desire to grow this business. Being well positioned for growth is imperative and we continue to review and analyse our needs on an ongoing basis.
I would also like to thank our shareholders for their support and continued investment with Love Hemp Group. Looking ahead, the opportunities to continue our growth are significant, and we are well placed to capitalise on them.
Financials
Gross revenue for the six-month period ended 31 December 2020 was £2,379,144 (six months ended 31 December 2019: £426,465) representing a
Responsibility Statement
We confirm that to the best of our knowledge:
- the interim financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting, as adopted by the EU;
- the interim financial statements give a true and fair view of the assets, liabilities, financial position and loss of the Group;
- the Interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
- the Interim report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.
The interim report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by:
Andrew Male
Chairman and Director
31 March 2021
For further information please contact:
Andrew Male | |
AQSE Corporate Adviser Mark Anwyl/Allie Feuerlein Peterhouse Capital Limited +44 (0) 20 7469 0930 | Financial PR Tim Blythe Alice McLaren Madeleine Gordon-Foxwell +44 (0) 207 138 3205 |
Financial Advisor
Rupert Fane
H&P Advisory Limited
+44 (0) 20 7907 8500
rf@hannam.partners
For more information on Love Hemp Group please visit: www.lovehempgroup.com
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SOURCE: Love Hemp Group PLC
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