Interim Results

RNS Number : 2465M
Zenergy Power PLC
12 August 2011
 



12 August 2011

Zenergy Power plc

("Zenergy" or "the Company" or "the Group")

 

 

Interim Results

for the Six Month Period ended 30 June 2011

           

Zenergy Power (AIM:ZEN.L), the superconductor energy technology company, announces its interim results for the six month period ended 30 June 2011 ('the Period').

 

Simon Cleaver, Chairman, commented:

 

"Following the board reorganisation, Zenergy is concentrating on discussions with a number of major industrial technology companies with a view to concluding value-enhancing licensing and strategic deals.

 

"Last month, the Company announced significant progress with the development of its 2G HTS wire plus the award of a €3.5m German Government grant to assist in scaling up the 2G wire manufacturing process.

 

"The Company remains confident that considerable value exists within its portfolio of technologies and work is continuing apace to secure the right licensing and strategic deals across our product range and shareholders will be updated as appropriate."

 

Financial Overview

 


H1 11

€000

H1 10

€000

H1 09

€000

Revenue

498

646

214

Gross margin

(400)

34

29

Operating loss

(4,587)

(5,304)

(4,527)

Cash burn*

(6,189)

(6,665)

(6,029)

Order backlog

1,272

3,606

799

Closing cash balance

8,954

23,204

11,710

 

*Cash and cash equivalents excluding net cash from financing activities

 

 

 

Further information

 

Simon Cleaver

Zenergy Power plc

+44 1344 667 347

Adam Pollock/Katherine Roe

Panmure Gordon

+ 44 207 459 3600

David Bick/Mark Longston

Square1 Consulting

+44 207 929 5599

 

 



 

Chairman's Statement

 

The consolidated pre-tax loss for the period was reduced to €4,364,000 (6 months to June 2010: €6,145,000). These result benefited from a reversal of past share option expenses of €777,000 (6 months to June 2010: €30,000 expense).  Adjusting for this, the loss was €5,141,000 (6 months to June 2010: €6,115,000). The loss in H1 2011 also benefitted from a financial income of €211,000 compared to H1 2010 which experienced a financial expense of €854,000 in respect of foreign exchange movements on cash held. 

 

 

As a result of the loss, working capital movements and capital and development spend of €1,067,000 (6 months to 30 June 2010: €1,424,000), there was a consequential reduction in cash and cash equivalents of €6,189,000 in the period (6 months to June 2010: €6,665,000 before proceeds from the issue of share capital of €22,375,000) leaving the Group with cash and cash equivalents of €8,954,000 at June 2011.

 

Net assets were €25,235,000 at 30 June 2011 (30 June 2010: €36,908,000) reflecting both the loss for the period and a loss on foreign exchange translation in respect of the subsidiaries balance sheets charged to the statement of comprehensive income of €1,127,000 (30 June 2010: €2,442,000 gain) as the US$ and sterling lost ground against the Euro. 

 

Basic and fully diluted loss per share reduced to €0.06 per share (6 months to 30 June 2010: €0.10) as set out in Note 5. 

 

 

 

 

Simon Cleaver

Chairman

 

 



 

Interim Results

For the six months ended 30 June 2011

 

Consolidated income statement

For the six months ended 30 June 2011

 


 Notes

 Unaudited

 Unaudited

 Audited



Six months to 30 June 2011

Six months to 30 June 2010

 Year ended 31 December 2010





€000

€000

€000






 Revenue

        2

                 498

              646

             2,567

 Cost of sales


                (898)

             (612)

            (2,991)



             

             

             

 Gross (loss)/profit


                (400)

                34

               (424)

 Other operating income

        3

                 266

              115

                685

 Sales and marketing expenses


             (1,014)

          (1,212)

            (2,589)

 Administrative expenses


                (1,341)

          (1,530)

            (2,942)

 Research & development expenses


             (2,098)

          (2,711)

            (4,674)



             

             

             

 Operating loss


             (4,587)

          (5,304)

            (9,944)

 Financial income

        4

                 211

                71

                325

 Financial expenses

        4

                   

             (925)

               (513)



             

             

             

 Net financing (expense)/income


                 211

             (854)

               (188)



             

             

             

 Loss before tax


             (4,376)

          (6,158)

           (10,132)

 Taxation


                   12

                13

                  26



             

             

             

 Loss for the period attributable to equity holders of the Parent


             (4,364)

          (6,145)

           (10,106)



               

               

             

 Earnings/(loss) per share (Euros)





 Basic and fully diluted loss per share

        5

               (0.06)

            (0.10)

              (0.15)

 

 

 



 

Consolidated statement of Comprehensive Income

For the six months ended 30 June 2011

 


 Unaudited

 Unaudited

 Audited


Six months to 30 June 2011

Six
months to 30 June 2010

Year ended 31 December 2010



€000

€000

€000





Loss for the period

        (4,364)

             (6,145)

         (10,106)

Other comprehensive income




Foreign exchange translation differences

        (1,127)

              2,442

              885


             

             


Other comprehensive income for the year net of tax

        (1,127)

              2,442

              885





Total comprehensive income for the year

        (5,491)

             (3,703)

          (9,221)

 

 

  

 

 



 

Consolidated balance sheet



 Unaudited

 Unaudited

 Audited


 Notes

30 June
 2011

30 June 2010

31 December 2010



€000

€000

€000

 Non-current assets





 Property, plant and equipment

       6

              4,027

           3,601

             2,639

 Goodwill

       7

              1,334

           1,516

             1,423

 Other intangible assets

       7

              8,950

           8,157

             8,860



             14,311

          13,274

            12,922



               

               

               

 Current assets





 Inventories


              1,524

              836

             1,107

 Trade and other receivables


             3,104

           3,587

             3,466

 Cash and cash equivalents


              8,954

          23,204

            15,845

 Assets classified as held for sale


-

-

             1,781



             13,582

          27,627

            22,199

 Total assets


             27,893

          40,901

            35,121











 Current liabilities





 Trade and other payables


             (2,081)

          (3,285)

            (2,908)

  Liabilities held for sale


                   
-  

                
-  

                 (73)








(2,081)

(3,285)

(2,981)

 Non current liabilities





    Deferred tax liabilities


                (577)

             (708)

               (637)






 Total liabilities


             (2,658)

          (3,993)

            (3,618)

 Net assets


             25,235

          36,908

            31,503






 Total equity attributable to shareholders





 Share capital

       8

                 934

              934

                934

 Share premium


             64,392

          64,387

            64,392

 Translation reserve


             (2,811)

             (122)

            (1,684)

 Warrant reserve


                 200

200

200

 Retained loss


            (37,480)

         (28,491)

           (32,339)






 Total equity attributable to shareholders  


25,235

36,908

31,503



 

Consolidated statement of changes in equity

For the six months ended 30 June 2011


 Share capital

 Share premium

 Translation reserve

 Capital and other reserves

 Retained earnings

 Total equity


 €000

 €000

 €000

 €000

 €000

 €000








 Balance at 1 January 2010

       738

   42,213

        (2,569)

          200

   (22,371)

     18,211

 Loss for the period

         
-

          -

              -  

            

     (6,145)

     (6,145)

 Other comprehensive income






           
 

 Foreign exchange differences on translation of foreign operations

         
-

          -

         2,442

           

          

      2,442

 Total comprehensive income for the period

         
-

          -

         2,442

            

     (6,145)

     (3,703)

 Equity settled share based payments transactions

         
-

          -

              - 

            

          30

           30

 Paid in share capital - cash

       196

   22,174

              - 

           

           

     22,370







             

 Balance at 30 June 2010

       934

   64,387

          (127)

          200

   (28,486)

     36,908















 Balance at 1 January 2011

       934

   64,392

        (1,684)

          200

   (32,339)

     31,503

 Loss for the period

         

          -

              -  

            

     (4,364)

     (4,364)

 Other comprehensive income






             

 Foreign exchange differences on translation of  foreign operations

         

          -

        (1,127)

            

          

     (1,127)

 Total comprehensive income for the period

         

          -

        (1,127)

          - 

     (4,364)

     (5,491)

 Equity settled share based payments transactions

         - 

          -

              -  

           

       (777)

        (777)








 Balance at 30 June 2011

       934

   64,392

        (2,811)

          200

   (37,480)

     25,235

 

The aggregated current and deferred tax relating to items that are charged or credited to equity is €Nil.



 

 

Consolidated cash flow statement

For the six months ended 30 June 2011



 Unaudited

 Audited


 Notes

Six months to 30 June 2011

Six months to 30 June 2010

Year ended 31 December 2010



€000

€000

 Cash flows from operating activities





 Loss for the period


       (4,364)

        (6,145)

   (10,106)

 Adjustments for:





 Depreciation and amortisation 

6,7

           441

            466

         939

 Foreign exchange losses/(gains)


           210

           (220)

        (366)

 Loss/(gain) on sale of fixed assets


             - 

               (8)

            3

 Financial income

4

          (211)

             (71)

        (325)

 Financial expenses

4

             - 

            925

         513

 Equity settled share-based payment expenses


          (777)

              30

         189

 Taxation


            (12)

             (13)

         (26)






 Operating loss before changes in working capital and provisions


       (4,713)

        (5,036)

     (9,179)

Decrease/(increase) in trade and other receivables


          661

        (1,238)

     (1,423)

 (Increase)/decrease in stock


          (388)

            362

          62

 (Decrease)/increase in trade and other payables


          (892)

            583

         279






 Cash absorbed by operations


       (5,332)

        (5,329)

   (10,261)






 Tax received


             - 

                1

           - 






 Net cash absorbed by operating activities


       (5,332)

        (5,328)

   (10,261)






 Cash flows from investing activities





 Interest received


           211

              70

         124

 Proceeds from the sale of fixed assets


             - 

              17

          17

 Acquisition of property, plant and equipment

6

          (314)

           (500)

     (1,381)

 Development expenditure capitalised and other intangible assets acquired

7

          (753)

           (924)

     (2,175)






 Net cash absorbed by investing activities


          (856)

        (1,337)

     (3,415)






 Cash flows from financing activities





 Interest paid





 Proceeds from the issue of share capital

8

             -

        22,375

    22,375

 Net cash from financing activities


             -

        22,375

    22,375






 Net (decrease)/increase in cash and cash equivalents


(6,188)

        15,710

      8,699

 Cash and cash equivalents at start of period


       15,845

         6,900

      6,900

 Effect of exchange rate fluctuations on cash held


          (703)

            594

         246






 Cash and cash equivalents at end of period


        8,954

        23,204

    15,845

 

 

 

Notes

1. Basis of preparation

The condensed consolidated interim financial statements for the six months ended 30 June 2011 have been prepared under applicable International Financial Reporting Standards adopted by the European Union ('IFRS') and in accordance with IAS 34 Interim Financial Reporting. They do not include all the of the information required for full annual financial statements and should be read in conjunction with the financial statements of the group for the year ended 31 December 2010.

The interim financial statements have been prepared under the same accounting policies as those used for the financial statements for the year ended 31 December 2010. Numerous IFRS's and Interpretations have been endorsed by the EU in the period to 30 June 2011 and although they have been adopted by the Group, none of them has had a material impact on the Group's financial statement.

The Group's 2010 annual report provides full details of significant judgements and estimates used in the application of the Group's accounting policies.  There have been no significant changes to these judgements and estimates during the period.

The financial information included in this document is unaudited and does not comprise statutory accounts within the meaning of section 498 of the Companies Act 2006.  The comparative figures for the financial year ended 31 December 2010 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditor and delivered to the registrar of companies. The report of the auditor was (i) unqualified, (ii) did include a reference to matters to which the auditor drew attention by way of emphasis without qualifying their report (see below), and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

Going Concern

The financial statements for the year ended 31 December 2010 drew attention to the significant uncertainties surrounding whether the company would be able to continue as a going concern.  Since those financial statements were published the Board has been replaced and the new Board is considering all options for the Company to maximise value for shareholders.  The new Board is focused on developing joint ventures and strategic alliances to help commercialise Zenergy's products.  As no agreement has been entered at the date of signing these interim statements this does indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.

The directors consider that the Group is well placed in its current discussions with interested parties in respect of some form of transaction and, having implemented various cost reduction measures, has adequate cash resources to enable it to meet its obligations in the short term. Therefore, the interim statements are prepared on a going concern basis. The interims do not include the adjustments that would result if the Group were unable to continue as a going concern.

2. Operating Segments

The Group has four operating segments which are described below, which are the Group's subsidiary entities. The subsidiaries are managed separately and have separate functions within the Group.  For each of the subsidiaries the Group CEO, who is considered to be the Group's Chief Operating Decision Maker, reviews the management accounts on a monthly basis as well as the annual budgets.

 

The operating segments are as follows:

·      Zenergy Power GmbH - is responsible for the manufacture of superconducting coils and magnets which are used in all of the Group's products, as well as being responsible for sales of the MBH and renewable coils worldwide.  Zenergy Power GmbH is also responsible for the development of 2G wire as well as the Group's intellectual property strategy.

·      Zenergy Power, Inc. - is responsible, for the FCL product for the entire group including sales, engineering, integration and final assembly of the product, which incorporates components from both Zenergy Power GmbH and third party suppliers. 

·      Zenergy Power Pty Ltd is partly responsible for the development and design efforts for the Fault Current Limiter including modelling and simulation experiments.  Zenergy Power, Inc. is responsible for the activities of Zenergy Power Pty Ltd.

·      Zenergy Power plc - is the Group holding company and is responsible for Group finances and Treasury, investor relations and marketing. The company also acts as an agent for sales of the Group's products in the UK.

The accounting policies of all segments are consistent with Note 1.



 

Information regarding each operating segment, which are also our reporting segments, is included below.  Segments are assessed based on revenues and loss before tax, as included in the internal management accounts that are reviewed by the Group CEO.  Inter-segment pricing is determined on an arm's length basis.

 

Information about reportable segments

Six months to 30 June 2011

 GmbH

 Inc

 Pty

 Plc

 Eliminations

 Consolidated


 €000

 €000

 €000

 €000

 €000

 €000

 Revenue







 Sales external

       498

        
-

         
-

        
-

                - 

               498

 Sales inter-company

       800

        
-

       410

        
-

          (1,210)

                 - 

 Total revenue

    1,298

        
-

       410

        
-

          (1,210)

               498








 Result







 Segment result being loss from operations

   (2,391)

  (1,121)

        (32)

     (742)

             (301)

           (4,587)

 Financial income

           2

         1

          4

      204

                -  

               211

 Loss before tax

   (2,389)

  (1,120)

        (28)

     (538)

             (301)

           (4,376)

 Tax

         
-  

        

         

        

                12

                12








 Loss for the period

   (2,389)

  (1,120)

        (28)

     (538)

             (289)

           (4,364)








 Balance sheet







 Segment assets

   11,050

   7,158

    1,962

 48,414

        (40,691)

          27,893

 Segment liabilities

   (5,065)

  (2,053)

      (774)

     (232)

           5,466

           (2,658)

 Net assets/(liabilities)

    5,985

   5,105

    1,188

 48,182

        (35,225)

          25,235








 Other information







 Capital additions

      (438)

     (830)

      (196)

 -

              397

           (1,067)

 Depreciation and amortisation

      (321)

      (59)

        (28)

        (1)

               (32)

              (441)

 Other non cash (share option charge)

       672

       40

         19

       46

                - 

               777

 Research & Development

   (1,757)

     (210)

      (131)

        
-

                - 

           (2,098)














 



 

Six months to 30 June 2010

GmbH

Inc

Pty

Plc

Eliminations

Consolidated


€000

€000

€000

€000

€000

€000

Revenue







Sales to external customers

336

-

-

310

-

646

Sales to other segments

1,307

323

616

-

(2,246)

-








Total segment revenue

1,643

323

616

310

(2,246)

646

 

Result







Segment result being loss from operations

(3,177)

(932)

(175)

(648)

(372)

(5,304)

Finance income

30

4

2

63

(28)

71

Finance expense

-

-

-

(925)

-

(925)








Loss before tax

(3,147)

(928)

(173)

(1,510)

(400)

(6,158)

Tax

-

-

-

-

13

13








Loss for the period

(3,147)

(928)

(173)

(1,510)

(387)

(6,145)








Balance sheet







Segment assets

10,008

8,016

1,115

61,688

(39,926)

40,901

Segment liabilities

(2,517)

(187)

(316)

(288)

(685)

(3,993)








Net assets/(liabilities)

7,491

7,829

799

61,400

(40,611)

36,908

 

 

Other information







Capital additions

667

1,169

13

-

(425)

1,424

Depreciation and amortisation

(303)

(99)

(29)

(1)

(34)

(466)

Other non cash expenses (share option charge)

(74)

(43)

(9)

96

-

(30)

Research & development

(2,132)

(283)

(296)

-

-

(2,711)

 

Information about geographical areas

The operating segments identified above, being the Group's subsidiary entities are organised according to geographical locations, Zenergy Power GmbH is located in Germany, Zenergy Power, Inc. is located in USA, Zenergy Power Pty Ltd is located in Australia and Zenergy Power plc is located in the United Kingdom. The disclosures presented above therefore are also geographical disclosures. Additional geographical disclosures are noted below:

Revenue by location of customer






Period ended 30 June 2011

Period ended 30 June 2010

Year ended 31 December 2010 


€000

€000

€000





Germany

492

193

1,360

Rest of Europe

6

453

1,207

Other

-

-

-



Total revenues

498

646

2,567



The Group does not hold assets in any countries other than those countries where the operating segments of the Group are domiciled. The assets of each operating segment are located solely in the country in which the subsidiary is domiciled, with the exception of inventory of €287,000 (2010: €322,000) held at Zenergy Power GmbH on behalf of Zenergy Power Inc.

 

How operating and reporting segments are determined

All reporting to the CODM is prepared at the subsidiary level which is our operating segments and our reportable segments. This is the lowest level of information reviewed by the CODM for the purposes of resource allocation.  The Group has three end product areas, namely Magnetic Billet Heater, Fault Current Limiters and coils for Renewable generators however for all products Zenergy's component is Superconducting Coils and Magnets which are all produced by Zenergy Power GmbH.  Revenues and gross margins are reviewed by product but this is not used for resource allocation purposes all other information is reviewed at a subsidiary level due to the current size of the Group. 

 

3. Other operating income



Six months
to 30 June
2011


Six months
to 30 June 2010

Year to
31 December

 2010


€000

€000

€000





Government grants

262

92

669

Other

4

23

16






266

115

685

 

 

4. Finance income and expense

 



Six months to
30 June

2011


Six months to 30 June 2010

Year  to
31 December

 2010


€000

€000

€000

Financial income




Interest income - bank

38

68

124

Exchange gain forward contracts

39

-

196

Exchange gain on cash held

134

-

-

Other exchange gains


3

5





Financial income

211

71

325





Financial expense




Foreign exchange loss on forward contracts

-

(9)

-

Foreign exchange loss on cash held

-

(916)

(513)

Other interest expense

-

-

-





Financial expense

-

(925)

(513)





Net financial (expense)/income

211

(854)

(188)





 



 

5. Earnings per share

Basic earnings per share

The calculation of basic earnings per share for the six months ended 30 June 2011 is calculated as follows:

 

 

Thousand of shares

Six months to 30 June

 2011

Six months to
30 June

 2010

Year  to

 31 December 2010 





Issued ordinary shares at start of period

69,059

52,242

52,242

Placing

-

7,275

15,694

Share options exercised

-

20

60

Shares issued in settlement of fees

-

10

29





Weighted average number of ordinary shares

69,059

59,547

68,025





Loss attributable to ordinary shareholders (€000)

(4,364)

(6,145)

(10,106)





Earnings/(loss) per share (Euros)




Basic and fully diluted loss per share

(0.06)

(0.10)

(0.15)

 

Diluted earnings per share

Share options and warrants have not been included in the calculation of fully diluted earnings per share since these are anti-dilutive.  The instruments that could potentially dilute the basic earnings per share in the future, but were not included because they were anti-dilutive for the periods presented are:

 

 

Thousand of shares

30 June

2011 

30 June 2010 

31 December 2010 





Warrants issued in respect of the working capital facility from Cloverleaf Holdings Limited (issued 16 August 2006)

160

160

 160

Share options

3,961

2,026

2,534





Total potential dilutive instruments

4,121

2,186

2,694





 

In the period 1 January to 30 June 2011 the following changes to the share options have occurred: 4,651,000 (2010: 22,000) new options have been granted, 3,016,000 options have been surrendered (2010: 390,000); nil options have been exercised (2010: 79,000), and 208,000 share options have lapsed (2010: 4,000).



6. Property, plant and equipment

 


Technical plant and equipment

 

Motor vehicles

Tenant improvements

Office and business equipment

Assets under construction

Total


€000

€000

€000

€000

€000

€000

Cost







Balance at 1 January 2010

3,097

19

1,267

616

130

5,129

Additions

73

-

65

71

291

500

Disposals

-

(11)

-

(14)

(25)

Effect of movements in foreign exchange

115

-

-

54

169








Balance at 30 June 2010

3,285

8

1,332

727

421

5,773








Balance at 1 January 2011

1,761

32

1,607

827

100

4,327

Reclassification as held for use assets

1,662

-

-

-

610

2,272

Additions

26

-

24

37

227

314

Effect of movements in foreign exchange

(56)

(1)

-

(30)

(87)








Balance at 30 June 2011

3,393

31

1,631

834

937

6,826


               



               

               

               








Depreciation







Balance at 1 January 2010

(1,185)

(3)

(56)

 (433)

 - 

 (1,677)

Depreciation charge for the period

(241)

(2)

(52)

(85)

(380)

Disposals

-

3

-

2

5

Effect of movements in foreign exchange

(78)

-

-

(42)

(120)








Balance at 30 June 2010

(1,504)

(2)

(108)

(558)

(2,172)








Balance at 1 January 2011

(889)

(6)

(161)

 (632)

 - 

 (1,688)

Reclassification as held for use assets

(825)

-

-

-

(825)

Depreciation charge for the period

(239)

(3)

(61)

(48)

(351)

Effect of movements in foreign exchange

41

-

-

24

65








Balance at 30 June 2011

(1,912)

(9)

(222)

(656)

(2,799)


               



               

               

               

Net book value







At 30 June 2010

1,781

6

1,224

169

421

3,601








At 30 June 2011

1,481

22

1,409

178

937

4,027

 







No assets are held under finance leases.

 

There are no restrictions on title associated with the group's fixed assets.  No assets are pledged as security and there are no contractual commitments to purchase. 

 

 



 

7. Intangible assets

 


Goodwill

Patents and

Trademarks

Development rights and capitalised development expenditure

Total


€000

€000

€000

€000

Cost





Balance at 1 January 2010

1,321

935

5,956

8,212

Additions

-

4

920

924

Effect of movements in foreign exchange

195

127

924

1,246






Balance at 30 June 2010

1,516

1,066

7,800

10,382






Balance at 1 January 2011

1,423

1,009

8,625

11,057

Additions

-

2

745

747

Effect of movements in foreign exchange

(89)

(59)

(532)

(680)






Balance at 30 June 2011

1,334

952

8,838

11,124











Amortisation





Balance at 1 January 2010

 -

(333)

(250)

(583)

Amortisation charge for the period

 -

(45)

(41)

(86)

Effect of movements in foreign exchange

 -

(40)

-

(40)






Balance at 30 June 2010

-

(418)

(291)

(709)






Balance at 1 January 2011

 -

(440)

(334)

(774)

Amortisation charge for the period

 -

(46)

(44)

(90)

Effect of movements in foreign exchange

 -

24

24






Balance at 30 June 2011

-

(462)

(378)

(840)






Net book value





At 30 June 2010

1,516

648

7,509

9,673






At 30 June 2011

1,334

490

8,460

10,284











 

Amortisation charge

The Group amortisation charge is recognised in Research & development expenses in the income statement to the extent it does not relate to sales made in the period. An allocation of amortisation is included in the overhead rates included in cost of sales.

Goodwill

Goodwill arose on the following acquisitions: Zenergy Power GmbH €170,000, Zenergy Power, Inc. €1,063,000 (US$1,535,000) and Zenergy Power Pty Ltd €101,000 (Australian Dollars 136,000). Goodwill is denominated in the currency of the acquired entity.

 

 

Development rights and capitalised development expenditure

The Group's intangible assets relate to development rights acquired through business combinations and subsequent development expenditure meeting the criteria for capitalisation as required by IAS 38.

Significant expenditure has been incurred during the period in respect of research and development activities. In respect of costs relating to the Magnetic Billet Heater, Fault Current Limiter and superconducting coils the directors have concluded that the expenditure meets the IAS38 criteria for capitalisation and as such these costs have been capitalised, €745,000 has been capitalised in 2011 (€1,669,000 of internal costs net of €924,000 of grants receivable).

 

8. Capital and reserves

Share capital

 


30 June 2011

30 June 2010

31 December 2010

Ordinary shares in thousands of shares




On issue at start of period

69,059

52,242

52,242

Issued for cash




Placing

-

16,700

16,700

Share options exercised

-

79

79

Issued in settlement of services

-

38

38









On issue - fully paid

69,059

69,059

69,059





 

 


30 June

2010

30 June

2010

30 June

2010

30 June

2010

31 December

2010

31 December

2010


£000

€000

£000

€000

£000

€000








Allotted, called up and fully paid







Ordinary shares of £0.01 each

691

934

691

934

691

934








Shares classified in equity


934


934


934








The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Group.

On 22 January 2010 16,700,000 new ordinary 1p shares were issued, at a price per share of £1.20, raising £20.04 million (net £19.2 million after fees of £0.8 million), which at the exchange rate prevailing on the date the shares were admitted to trading was equivalent to €23.3 million (net €22.3 million after  fees of €1.0 million).

On 18 March 2010 52,035 shares were issued in respect of an exercise of options resulting in proceeds of £15,611 (€17,461).

On 30 March 2010 38,568 shares, with a value of £44,000 (€49,000), were issued to the non executive directors in lieu of their surrendered options.

On 15 April 2010 26,795 shares were issued in respect of an exercise of options resulting in proceeds of £8,039 (€9,129).

 

Translation reserve

The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations.

Warrant reserve

The warrant reserve comprises the fair value of the equity component of warrants issued by the Group.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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