Half Yearly Report

RNS Number : 4566N

Advanced Oncotherapy PLC

28 September 2012

 



Advanced Oncotherapy Plc

("Advanced Oncotherapy" or the "Company")

Interim Results for the Six Months Ended 30 June 2012

Chief Executive's Statement

The six months to 30 June 2012 has been a period of significant strategic change for the Company. We announced at the end of March, following the sale of our German property interests in November 2011, the intention to move the Company into the development and delivery of cancer services through our shareholdings in Advanced Proton Solutions (Holdings) Limited and Oncotherapy Resources Limited. On 16 July we announced that the name of the Company was to be changed to Advanced Oncotherapy Plc and that our wholly owned property development subsidiary, The Healthcare Property Company Limited, was to be demerged.

On 31 August, at a General Meeting of the Company, the Shareholders approved the change of name together with a significant increase in Directors' authorities to issue new shares.

The name change was registered and announced on 7^th September.

As reported below the demerger of the property development business is being progressed.

During the six month period ended 30 June 2012 the Group had revenues of £1.41 million (2011: £3 million; year to 31.12.2011: £6.2 million.). The loss on ordinary activities before taxation was £1.02 million (2011: £0.6 million; year to 31.12.11: £1.67 million). The comprehensive loss for the period was £1.02 million (2011: £0.16; year to 31.12.12: £6.7 million.) Total assets at 30.6.12 were £8.8 million (2011: £42.95 million; at 31.12.11: £7.07 million). Net Assets at 30.6.12 were £0.54 million (2011: £7 million; at 31.12.11: £0.48 million).

In the six month period to 30 June 2012, The Healthcare Property Company had revenues of £ 1.4 million and a profit before tax of £0.04 million. The company had net assets at that date of £1.8 million.

The second phase of the project at Allesley in Coventry progressed during the period and was completed on 31 August. Development work continues on the project in Bishops Stortford and those in Wales at Buckley, Swansea, Glynneath and Crosshands in partnership with Guafron Healthcare. A number of further potential projects are being pursued.

Since the announcement regarding the demerger of the property company the Board has received considerable interest from a number of potential purchasers. Discussions are now at an advanced stage with one purchaser on terms which if realised, would value the disposal at a price in excess of the current market capitalisation of the Group. Whilst there can be no certainty that these discussions will be completed, nor as to the terms on which any offer may be made, a further announcement will be made as soon as possible. Once achieved, this will allow the Company to focus on the delivery of cancer treatments which is already increasing investor interest.

The Company has a 75% shareholding in Oncotherapy Resources Limited ("ORL"). ORL has an exclusive contract to import a new, electronic brachytherapy device that can deliver single fraction breast radiotherapy, intra-operatively at the time of lumpectomy (IORT) and can be delivered to any location to more easily meet the needs of selected cancer patients.

 It is a truly portable and mobile device that can be delivered, set up and used in the operating theatre and then moved on to the next theatre, centre or hospital to treat those patients with far less safety implications than a machine with a radioactive source thus enabling patients to have a one off course of radiotherapy closer to their homes.

 The Xoft Axxent eBx system is now available from ORL in the UK and Ireland as a fully managed and delivered service on a cost per patient treated basis enabling the NHS or private sector to more easily adopt the technique now without the need for a capital equipment purchase. The system can also treat skin and gynaecological cancers.

ORL has purchased the first machine which is now in the UK and technicians are being trained to deliver this innovative service. The first patients will be treated at the end of October and both NHS and Private Hospitals have agreements in place.

The Company has also a 28.75% shareholding in Advanced Proton Solutions (Holdings) Limited. Planning consent has been granted for the first development of a proton beam facility in the City of London and there are four other developments being progressed in the United States. Significant progress has been made in procuring funding for these projects and, in the UK, important collaborative agreements are in place with a number of NHS Bodies.

We believe the sale of the Property Development business will enable the Company to invest in its existing specialist cancer treatment services businesses as briefly described above and to realize the operational efficiencies and enhanced shareholder value.    

On behalf of the board

Michael Sinclair

Chief Executive

Michael Sinclair, Chief Executive	Sandy Jamieson	Jon Levinson Lucy Williams	Simon Hudson Kelsey Traynor
Advanced Oncotherapy Plc	Libertas Capital Corporate Finance Ltd	Peterhouse Corporate Finance Ltd	Tavistock Communications
0203 617 8739	(NOMAD & Joint Broker)	(Joint Broker)	(Financial PR & IR)
	020 7569 9650	020 7469 0935	020 7920 3150

Financials

Consolidated statement of comprehensive income
For the period ended 30 June 2012
						Interim	Group	Interim	Group
						Jun-12	2011	Jun-11	2010
						£	£	£	£
Revenue						1,409,737	6,160,695	3,002,695	1,379,814
Cost of sales						(1,229,459)	(5,208,039)	(2,174,939)	(1,179,806)
Gross Profit						180,278	952,656	827,756	200,008
Administrative expenses						(1,044,824)	(1,624,818)	(919,281)	(1,385,236)
Fair value adjustment to amounts recoverable on contacts							-	290,987
Share based payment						0	-
Development costs written off						-	(300,000)		(504,172)
Operating loss						(864,547)	(972,162)	199,462	(2,794,455)
Finance income						-	-	70	149
Finance costs						(160,280)	(696,495)	(800,610)	(742,331)
Loss on ordinary activities before taxation						(1,024,826)	(1,668,657)	(601,078)	(3,536,637)
Taxation						-	288,066		118,888
Loss after taxation from continuing operations						(1,024,826)	(1,380,591)	(601,078)	(3,417,749)
Discontinued operations
Loss for the year from discontinued operations						-	(5,349,168)		(757,739)
Loss after discontinued operations						(1,024,826)	(6,729,759)	(601,078)	(4,175,488)
Loss for the period
Attributable to equity shareholders						(1,024,826)	(6,493,894)	(628,786)	(4,094,292)
Non-controlling interests						-	(235,864)	27,709	(81,196)
						(1,024,826)	(6,729,759)	(601,077)	(4,175,488)
Other comprehensive income
Exchange differences on translation of foreign operations						-	56,537	444,611	(332,071)
Total comprehensive loss for the year net of tax						(1,024,826)	(6,673,222)	(156,466)	(4,507,559)
Total comprehensive loss attributable to:
Equity shareholders						(1,024,826)	(6,443,011)	(228,636)	(4,393,156)
Non-controlling interests						-	(230,211)	72,170	(114,403)
						(1,024,826)	(6,673,222)	(156,466)	(4,507,559)

Consolidated statement of financial position
as at June 2012
				Interim		Full Group		Interim		Group
				Jun-12		2011		Jun-11		2010
				£		£				£
Non-current assets
Investment properties				3,049,357		3,049,357		32,498,710		31,009,083
Development properties				1,961,192		2,384,258		3,459,948		3,072,761
Leasehold improvements						-		59,176		64,087
Plant and equipment				13,431		10,160		30,638		37,951
				5,023,980		5,443,775		36,048,472		34,183,882
Current Assets
Amounts receivable on contracts				2,547,887		1,123,066		5,961,424		1,789,648
Trade and other receivables				1,245,407		483,722		903,680		759,658
Cash and cash equivalents				3,366		24,158		36,990		148,442
				3,796,660		1,630,946		6,902,094		2,697,748
Total assets				8,820,640		7,074,721		42,950,566		36,881,630
Current liabilities
Trade and other payables				(3,974,682)		(2,793,800)		(3,583,542)		(2,617,938)
Borrowings				(4,310,001)		(3,801,871)		(12,995,178)		(7,383,476)
				(8,284,683)		(6,595,671)		(16,578,720)		(10,001,414)
Non-current liabilities
Borrowings						-		(19,087,974)		(19,439,878)
Deferred tax						-		(288,066)		(288,066)
				0		0		(19,376,040)		(19,727,944)
Total liabilities				(8,284,683)		(6,595,671)		(55,330,800)		(49,457,302)
Net assets				535,957		479,050		(12,380,234)		(12,575,672)
Equity
Share capital				1,634,104		767,541		767,541		767,541
Share premium reserve				1,612,670		1,397,500		1,397,500		1,397,500
Share option reserve				557,996		557,996		557,996		557,996
Reverse acquisition reserve				11,038,204		11,038,204		11,038,204		11,038,204
Exchange movements reserve				(388,330)		(388,330)		(39,063)		(439,213)
Accumulated losses				(13,918,687)		(12,893,861)		(6,929,596)		(6,300,810)
Equity attributable to shareholders of the Parent Company				535,957		479,050		6,792,582		7,021,218
Non-controlling interests				0		0		203,224		131,054
Total equity				535,957		479,050		6,995,806		7,152,272
Consolidated statement of cash flows
For the period ended 30 June 2012
					Interim		Group		Interim		Group
					30-Jun-12		2011		30-Jun-11		2010
					£		£		£		£
Cash flow from operating activities
Loss after taxation					(1,024,826)		(6,491,247)		(601,077)		(4,175,488)
Adjustments:
Taxation					0		(288,066)				(118,888)
Finance costs					160,280		1,422,876		800,609		1,607,323
Finance income					0		(403)		(70)		(648)
Net portfolio losses / (gains)					0		5,411,250				2,115,068
Revaluation of developments in progress									(290,987)
Depreciation					1,364		98,977		13,528		27,318
Write-off of development costs incurred					0		300,000				504,172
Share based payments					0		0				145,742
Cash flows from operations before changes in working capital					(863,182)		453,387		(77,997)		104,599
Changes in amounts recoverable on contracts					(1,103,093)		666,582		(4,171,776)		(1,789,648)
Change in trade and other receivables					(761,686)		37,423		(144,023)		(247,086)
Change in trade and other payables					1,104,374		89,650		839,991		362,276
Cash (used) / generated from operations					(1,623,587)		1,247,043		(3,553,805)		(1,569,859)
Interest paid					(83,772)		(1,190,196)		(622,731)		(1,678,472)
Costs associated with disposal of companies					0		(257,957)				(1,050,205)
Cash flows from operating activities					(1,707,359)		(201,110)		(4,176,536)		(4,298,536)
Cash flows from investing activities:
Disposal of investment properties					0		28,204,416				23,249,001
Disposal of development property					0		711,124				296,497
Loss on disposal of investment and development property					0		(5,029,677)				-
Capital expenditure on investment properties					(0)		-				(115,844)
Capital expenditure on development properties					101,338		(322,621)		(349,300)		(82,697)
Purchase of plant and equipment					(1,907)		(11,530)		(3,148)		(8,532)
Interest received					0		403		70		648
Cash flows from investment activities					99,431		23,552,115		(352,378)		23,339,073
Cash flows from operating and investment activities					(1,607,928)		23,351,005		(4,528,914)		19,040,537
Cash flows from financing activities:
Amounts raised through new equity					496,889		-				742,950
Development loans					0		(1,524,120)		3,647,932		1,524,120
Repayment of loans					579,033		(22,721,550)		(260,517)		(22,084,771)
Directors' loans (net of costs)					0		-				26,816
Other short term loans					165,851		804,250		879,500		243,000
Cash flows from financing activities					1,241,773		(23,441,420)		4,266,915		(19,547,885)
Decrease in cash and cash equivalents					(366,155)		(90,415)		(261,999)		(507,348)
Cash and cash equivalents at 1 January 2011					(329,190)		(238,775)		(238,775)		268,573
Cash and cash equivalents at 31 December 2011					(695,345)		(329,190)		(500,774)		(238,775)
Comprising:
Cash in accounts					3,366		24,158		36,990		148,442
Overdraft in borrowings					(354,294)		(353,348)		(537,764)		(387,217)
Total					(350,928)		(329,190)		(500,774)		(238,775)

 

END

 

 

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