e-Therapeutics plc Interim Re
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Press release |
29 October 2010 |
e-Therapeutics plc
("e-Therapeutics" or the "Company")
Interim Results
For the six months ended 31 July 2010
e-Therapeutics plc (AIM: ETX), the drug discovery and development company focussed on network pharmacology, is pleased to announce the unaudited interim results of the Company and its subsidiaries ("the Group") for the six months ended 31 July 2010.
During the period e-Therapeutics has continued to utilise its unique technology platform based on network pharmacology that allows the Company to be able to swiftly and accurately devise drugs that address presently unmet medical need and identify how medicines interact with cells in the body. This approach optimises the probability of identifying drug candidates with desirable efficacy and minimal side effects.
Highlights
Clinical development programmes:
· Selection of three lead candidates to enter specialist Phase II trials that are planned to complete during 2012, namely those for multiple metastatic cancers, depression and C. difficile
· Continued detailed evaluation of the potential of three further drug candidates in MRSA and Asthma to undertake a further one or possibly two Phase II trials, also expected to complete in 2012
Technology platform:
· Increased interest from pharmaceutical companies in using the Company's patented discovery platform to apply network pharmacology techniques to their discovery and development pipelines
· Ongoing discussions with multiple prospective partners in relation to potential collaboration and services.
Financial:
· Cash position of £1.8 million as at 31 July in line with market forecasts
· Exploring funding opportunities to meet the portion of costs of the planned Phase II trials not already paid-for out of existing budgets and to provide additional working capital
Commenting on the Results, e-Therapeutics' Chairman, Oliver James, said: "We are increasingly pleased with the progress of our efforts in drug discovery using our unique network pharmacology platform. Following extensive internal planning on its clinical program, e-Therapeutics is excited at the prospect of reporting Phase II data for four or possibly five drug candidates in 2012. This is a significant programme which we believe is testimony to the productivity of our discovery technology and to the hard work involved in creating a development capability of such scale.
"Worldwide interest in network pharmacology and its application in improved drug discovery we believe is growing fast and as a result of this increasing interest and e-Therapeutics' patented discovery platform, we hope to be able to announce collaborations with pharmaceutical companies, with whom discussions are currently active. Moreover, armed with the Phase II results from our drug candidates, we anticipate a number of licensing agreements during 2012. The Company is exploring opportunities for further funding, principally to meet the costs of gaining specialist high quality data on some of its lead candidates. With development results expected from its drug portfolio and further validation of its platform technology through partnerships, the e-Therapeutics board feels that the Company is well positioned to capitalise on the success of its unique platform over the coming years."
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About e-Therapeutics
e-Therapeutics is a pioneering network pharmacology company focused on drug discovery and development and providing solutions to partners. e-Therapeutics uses its unique network pharmacology platform to swiftly and accurately devise drugs that address presently unmet medical need and identify how medicines interact with cells in the body. This approach optimises the probability of identifying drug candidates with desirable efficacy and minimal side effects, demonstrating far higher productivity than conventional development approaches.
The Company has a broad clinical pipeline that combines mid- and late-stage pharmaceutical products with earlier stage opportunities, all addressing important market sectors and unmet medical needs such as depression, anti-biotic resistance, and cancer.
e-Therapeutics is based in Newcastle-upon-Tyne, UK and is listed on AIM under the ticker symbol ETX. For more information, please visit www.etherapeutics.co.uk.
CHAIRMAN'S STATEMENT
Introduction
In the period since the release of our annual report e-Therapeutics has continued to prepare its forthcoming clinical development programme on the Company's existing drug candidate portfolio. The programme focuses on the development needed for Western markets and I am delighted to provide more detail on our plans.
e-Therapeutics' highly productive network pharmacology platform has produced rather more drug candidates than a company of our current size can realistically develop in parallel. Over the last 18 months, we have significantly expanded our capabilities to allow us to develop multiple candidates simultaneously, allowing more rapid value creation as well as risk mitigation across the portfolio. Full Western regulatory standard Phase II trials are planned for three of our drug candidates: ETS2101 (Cancer), ETX 1153c (C. Difficile) and ETS6103 (Depression). Subject to an evaluation of the funding alternatives, these trials are expected to commence in 2011 and to report out in the first half of 2012.
In addition, the Company is evaluating three further candidates - ETX1153b (MRSA IV), ETX1153a (MRSA Topical) and ETX9101 (Asthma) - to select one or possibly two of these for complete Phase II trials in the same timeframe. As a consequence e-Therapeutics anticipates having four or five Phase II studies completing in 2012.
It is planned to license a number of these candidates to suitable partners in 2012 based on successful Phase II data. The licensing partner will then complete development and undertake market launch. All the candidates have been devised to meet areas of important unmet medical need and are expected to be attractive to prospective licensors. The focus on specific candidates for Phase II delivery follows the Company's strategy of producing important drug candidates for launch in the timeframe pertinent to the expected large number of patent expiries in the industry, which is likely to cause revenue erosion for large pharmaceutical companies and increasing demand for high quality drug candidates.
The candidates licensed in India await local regulatory approval to undertake further clinical development. The focus of this activity remains the potential for early revenue, as well as providing clinical evidence to support licensing activities in the Western markets.
The candidates in the e-Therapeutics portfolio not selected for clinical development will continue to be evaluated and may be developed when resources or opportunities allow in the future.
In addition to the activities relating to the Company's proprietary drug candidate portfolio, we continue to have discussions with a range of pharmaceutical companies regarding the application of e-Therapeutics' network pharmacology technology for mutual benefit. The directors believe there has been a tangible increase in interest in network pharmacology has been observed from a number of major pharmaceutical companies and the wider life science community, especially in the United States. We continue to explore these collaborative partnership opportunities, to supplement the value already being created for shareholders through the Company's drug candidate pipeline.
Financial Position
The cash and cash equivalent position of the company at 31 July 2010 is approximately £1.8 million. This is in line with the expectations of the Board and the cash used by the business has remained modest, owing to the efficiency of its drug discovery platform.
The vigorous assessment of our drug discovery pipeline has resulted in detailed plans and expenditure forecasts. Some of these costs have already been met, with 250 patients in Phase II studies paid for in advance. Certain of the candidates have been evaluated to be best developed in specialist clinical research organisations tailored to provide the highest quality data for the therapeutic area in question. To fund this cost and to provide additional working capital until the anticipated rewards of licensing income are received, the Company is exploring fundraising opportunities in the short term. Although engagement with pharmaceutical companies to harness the capabilities of e-Therapeutics' network pharmacology technology may generate some or all of this cash requirement, the Board believes it is most appropriate to seek certainty of funding to enable its development programme to be progressed in a timely manner.
Summary and Outlook
e-Therapeutics has now focused its development plans on the candidates viewed as most attractive for licensing, technical and commercial purposes. The area of network pharmacology is becoming increasingly popular globally and across the pharmaceutical industry and we are well positioned to take advantage of this. Subject to the evaluation of funding alternatives, the Company is planning to produce four and perhaps five sets of Phase II data in 2012. The streamlining work conducted over the past 18 months allows development of this scale to be achievable.
Coupled with anticipated proceeds from licensing activities during 2012, the Company does not anticipate further financing requirements for the existing Phase II portfolio. The increased appetite and enthusiasm for network pharmacology over the recent period encourages management that the industry is awakening to the potential of e-Therapeutics' approach. We hope to see escalating rewards from this engagement as the technology is validated by data from its Phase II trials and through collaborative partnerships. We look forward to executing our streamlined risk-mitigating strategy which is to develop our lead candidates through phase II from next year and to licensing these programmes in 2012 based upon extensive clinical data. We look forward to updating investors on our progress with the portfolio and to the further validation of our platform technology from these trials and through partnerships."
Oliver James
Chairman
29 October 2010
GROUP INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 JULY 2010
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|
|
6 months ended 31 July |
6 months ended 31 July |
12 months ended 31 January |
|
|
|
2010 |
2009 |
2010 |
|
|
Notes |
(un-audited) |
(un-audited) |
(audited)
|
|
|
|
£000's |
£000's |
£000's |
|
Revenue
|
2 |
0 |
- |
- |
|
Cost of sales
|
|
(18) |
(212) |
(-) |
|
Gross profit
|
|
(18) |
(212) |
- |
|
Development expenditure |
|
|
|
(434) |
|
|
|
|
|
|
|
Other operating income
|
|
- |
130 |
1 |
|
Administration expenses
|
|
(1,201) |
(1,198) |
(1,729) |
|
Operating loss
|
|
(1,219) |
(1,280) |
(2,162) |
|
Finance expense |
|
- |
- |
(105) |
|
|
|
|
|
|
|
Finance revenue
|
|
9 |
5 |
12 |
|
Loss before taxation
|
|
(1,210) |
(1,275) |
(2,255) |
|
Taxation
|
|
190 |
178 |
476 |
|
Loss for the period
|
3 |
(1,020) |
(1,097) |
(1,779) |
|
Loss per share - basic |
1 |
(1.55)p |
(1.89)p |
(2.96)p |
|
Loss per share - diluted |
1 |
(1.55)p |
(1.89)p |
(2.96)p |
The results shown above relate entirely to continuing operations.
There are no recognised gains and losses other than those passing through the income statement.
GROUP BALANCE SHEET
AT 31 JULY 2010
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|
|
31 July |
31 July |
31 January |
|
|
|
2010 |
2009 |
2010 |
|
|
Notes |
(un-audited) |
(un-audited) |
(audited) |
|
|
|
|
|
|
|
|
|
£000's |
£000's |
£000's |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
Property, plant and equipment |
4 |
23 |
37 |
30 |
|
Goodwill |
|
- |
- |
- |
|
Intangible assets |
5 |
355 |
192 |
259 |
|
|
|
378 |
229 |
289 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
6 |
1,801 |
1,359 |
2,880 |
|
Trade and other receivables |
7 |
587 |
476 |
549 |
|
|
|
2,388 |
1,835 |
3,429 |
|
Total assets |
|
2,766 |
2,064 |
3,718 |
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
8 |
203 |
214 |
200 |
|
|
|
203 |
214 |
200 |
|
Long Term Liabilities |
|
|
|
|
|
Loan |
9 |
1,032 |
1,049 |
1,032 |
|
|
|
1,032 |
1,049 |
1,032 |
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Total liabilities |
|
1,235 |
1,263 |
1,232 |
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Net Assets |
|
1,531 |
801 |
2,486 |
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EQUITY
|
|
|
|
|
|
Share capital |
10 |
66 |
59 |
65 |
|
Share premium account |
10 |
7,637 |
5,632 |
7,573 |
|
Warrant reserve |
10 |
420 |
- |
420 |
|
Retained earnings |
10 |
(6,592) |
(4,890) |
(5,572) |
|
Capital and reserves attributable to equity holders |
10 |
1,531 |
801 |
2,486 |
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 JULY 2010
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|
|
Six months ended 31 July |
Six months ended 31 July |
Twelve months ended 31 January |
|
|
Notes |
2010 |
2009 |
2010 |
|
|
|
(un-audited) |
(un-audited)
|
(audited)
|
|
|
|
£000's |
£000's |
£000's
|
|
Cash flows from operating activities |
|
|
|
|
|
Loss for the period |
3 |
(1,020) |
(1,097) |
(1,779) |
|
Adjustments for: |
|
|
|
|
|
Depreciation, amortisation and impairment |
4 |
11 |
10 |
20 |
|
Financial income |
|
(9) |
(5) |
(12) |
|
Financial expenses |
|
- |
- |
105 |
|
Loss on sale of property, plant and equipment |
|
|
|
- |
|
Equity-settled share-based payment expenses |
|
|
|
- |
|
Taxation |
|
- |
|
(476) |
|
|
|
(1,018) |
(1,092) |
(2,142) |
|
|
|
|
|
|
|
(Increase)/ decrease in trade and other receivables |
7 |
(38) |
161 |
362 |
|
(Decrease)/increase in trade and other payables |
8 |
3 |
(81) |
(95) |
|
Tax received |
|
- |
- |
202 |
|
Net cash from operating activities |
|
(1,053) |
(1,012) |
(1,673) |
|
Cash flows from investing activities |
|
|
|
|
|
Proceeds from sale of property, plant and equipment |
|
- |
- |
- |
|
Interest received |
|
9 |
5 |
12 |
|
Financial expense |
|
|
|
(105) |
|
Acquisition of property, plant and equipment |
3 |
(4) |
(5) |
(8) |
|
Acquisition of other intangible assets |
4 |
(96) |
(38) |
(105) |
|
Net cash from investing activities |
|
(91) |
(1,050) |
(206) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Issue of share capital |
10 |
65 |
951 |
3,318 |
|
Issue of loan notes |
10 |
- |
1,049 |
1,032 |
|
Interest paid |
|
|
|
- |
|
Net cash from financing activities |
|
65 |
2,000 |
4,350 |
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
6 |
(1,079) |
950 |
2,471 |
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
6 |
2,880 |
409 |
409 |
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
6 |
1,801 |
1,359 |
2,880 |
GROUP STATEMENT OF CHANGES in EQUITY
FOR THE SIX MONTHS ENDED 31 JUly 2010
|
|
Share |
Share |
Warrant |
Retained |
Total |
|
|
capital |
premium |
Reserve |
Earnings |
|
|
|
|
|
|
|
|
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
|
Balance at 1 February 2010 |
65 |
7,573 |
420 |
(5,572) |
2,486 |
|
Issue of Share Capital |
1 |
64 |
|
|
65 |
|
Net loss for the period |
|
|
|
(1,020) |
(1,020) |
|
Balance at 31 July 2010 |
66 |
7,637 |
420 |
(6,592) |
1,531 |
NOTES TO THE FINANCIAL REPORTS FOR THE SIX MONTH PERIOD ENDED 31 JULY 2010
1. Accounting policies
e-Therapeutics plc (the "Company") is a company incorporated and domiciled in the UK. The nature of the operations and principal activities of the Company and its subsidiary undertakings (the "Group") are set out in note 2.
Transition to adopted IFRS
Both the Group and the Company are preparing their financial statements in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRS") for the first time and consequently both have applied IFRS 1.
IFRS 1 grants certain exemptions from the full requirements of Adopted IFRS in the transition period. The following exemptions have been taken in these interim accounts:
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Business combinations - Business combinations that took place prior to the transition date have not been restated. |
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Share-based payments - IFRS 2 is being applied to equity instruments that were granted after 7 November 2002 and that had not vested by transition date. |
Both the Group and Company financial statements have been prepared and approved by the directors in accordance with Adopted IFRS and therefore comply with Article 4 of the EU IAS regulations.
Standards and Interpretations in use but not applied
The following standards and interpretations, which have not been applied in these financial statements, were in use but not yet effective:
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IFRS 8 "Operating Segments" (mandatory for the year commencing on or after 1 January 2009). |
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Revised IAS 1 "Presentation of Financial Statements" (mandatory for the year commencing on or after 1 January 2009). |
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IFRS 7 "Financial instruments" Disclosure applicable for years commencing on or after 1 January 2007. |
The directors anticipate that the adoption of the above will have no material effect on the Group's interim accounts. No other endorsed standard is expected to have a material impact.
Basis of preparation
The interim accounts are prepared on the historical cost basis except that derivative financial instruments are stated at fair value.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements and in preparing an opening IFRS balance sheet at 1 February 2008 for the purposes of transition to Adopted IFRS.
The interim accounts are prepared on a going concern basis which the directors believe to be appropriate for the following reason. The group has prepared a cash flow forecast demonstrating funds are available for the next 12 months.
The preparation of financial statements requires the directors to make judgements, estimates and assumptions that may affect the application of accounting policies and the reported amounts of assets and liabilities, and income and expenses. The key areas requiring the use of estimates and judgements which may significantly affect the financial statements are considered to be:
(a) estimation of share-based payments costs which requires the selection of an appropriate valuation model together with assumptions as to the key inputs into the model; and
(b) recoverability of receivables require the directors to make judgement on individual amounts based on their knowledge; and
(c) measurement of the recoverable amounts of cash-generating units containing goodwill.
These consolidated interim accounts are presented in Sterling. All financial information presented has been rounded to the nearest thousand.
On publishing its own interim accounts here together with the Group financial statements, the Company is taking advantage of the exemption in section 230 of the Companies Act 1985 not to present its individual income statement and related notes.
Basis of consolidation
The consolidated interim accounts incorporate the interim accounts of the Company, and its subsidiary (together referred to as the "Group").
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists where the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial information from the date control commences until the date that control ceases.
Intra-group balances, and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated interim accounts.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the group's own shares, the amounts presented in these interim accounts for called up share capital and share premium account exclude amounts in relation to those shares.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.
Trade and other receivables
Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.
Trade and other payables
Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.
Derivative financial instruments
Derivative financial instruments are recognised at fair value. The gain or loss on re-measurement to fair value is recognised immediately in profit or loss.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item.
The estimated useful lives are as follows:
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plant and equipment |
33.33% straight line |
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fixtures and fittings |
15% straight line |
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search engine |
15% straight line |
Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.
No depreciation is charged when the asset is under construction.
Investment in subsidiaries
Investments in subsidiaries are shown in the Company balance sheet at cost and are reviewed annually for impairment.
Intangible assets and goodwill
All business combinations are accounted for by applying the purchase method. Goodwill arises from the acquisition of businesses and represents the difference between the cost of the acquisition and the fair value of the identifiable assets, liabilities and contingent liabilities acquired. Identifiable intangibles are those which can be sold separately or which arise from legal rights regardless of whether those rights are separable.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but is tested annually for impairment.
Research and development
Expenditure on pure and applied research activities is recognised in the income statement as an expense as incurred.
Expenditure on drug development activities is capitalised if the product or process is technically and commercially feasible and the Group intends and has the technical ability and sufficient resources to complete development, future economic benefits are probable and if the Group can measure reliably the expenditure attributable to the intangible asset during its development. Development activities involve a plan or design for the production of new or substantially improved drugs. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses.
Other intangible assets
Expenditure on patent and trade marks is capitalised as patent costs are incurred. Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and less accumulated impairment losses.
Amortisation
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite.
Intangible assets with an indefinite useful life and goodwill are systematically tested for impairment at each balance sheet date. Other intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows:
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patents and trade marks 25 years |
Impairment
The carrying amounts of the Group's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment.
If any such indication exists, the asset's recoverable amount is estimated.
For goodwill and intangible assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying amount of the other assets in the unit on a pro rata basis. A cash generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Employee benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement as incurred.
Share-based payment transactions
The Group has an equity-settled share-based payment scheme, whereby options over shares in e-Therapeutics plc can be granted. Options over ordinary shares are granted at par value and are excisable and vest immediately. The fair value of the options granted is measured using the Black Scholes option valuation model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is due only to share prices not achieving the threshold for vesting.
Revenue
Revenue represents the amounts (excluding value added tax) derived from a broad range of services aimed at accelerating the drug discovery process.
Revenue is recognised on these services as a percentage to completion basis. Fixed price contracts are assessed on a contract-by-contract basis and reflected in the profit and loss account by recording turnover and related costs as contract activity progresses.
Other operating income
Other operating income represents grant income, and is recognised when received.
Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives received are recognised in the income statement as an integral part of the total lease expense.
Financing income and expenses
Financing expenses comprise interest payable.
Financing income comprises interest receivable on funds invested.
Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees and non-employees.
Segment reporting
A segment is a distinguishable component of the Group that is engaged in either providing related products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and returns that are different from those of other segments. The Group's primary format for segment reporting is based on business segments.
2. Segmental analysis
The Group has one business segment of drug discovery and development.
3. Loss of the Company
The Company has taken advantage of the exemption available under section 230 of the Companies Act 1985 and has not presented its own income statement.
The loss of the Company for the period in thousands of pounds was £1,020 (July 2009: £1,097).
4. Property, Plant and Equipment
Group
|
|
Plant and equipment £000
|
Fixtures and fittings £000 |
Total £000 |
|
Cost |
|
|
|
|
Balance at 1 February 2010 |
111 |
40 |
151 |
|
Additions |
4 |
- |
4 |
|
Disposal |
- |
- |
- |
|
At 31 July 2010 |
115 |
40 |
155 |
|
Depreciation |
|
|
|
|
As at 1 February 2010 |
96 |
25 |
121 |
|
Depreciation charge for the period |
7 |
4 |
11 |
|
As at 31 July 2010 |
103 |
29 |
132 |
|
|
|
|
|
|
Net book value |
|
|
|
|
At 31 January 2010 |
15 |
15 |
30 |
|
As at 31 July 2010 |
12 |
11 |
23 |
5. Goodwill and Intangible Assets
Group
|
|
|
Patents and trademarks £000 |
Total
£000 |
|
Cost |
|
|
|
|
As at 1 February 2010 |
|
259 |
259 |
|
Other acquisitions - internally developed |
|
96 |
96 |
|
At 31 July 2010 |
|
355 |
355 |
|
Amortisation and impairment |
|
|
|
|
Balance at 31 January 2010 and 31 July 2010 |
|
- |
- |
|
|
|
|
|
|
Net book value |
|
|
|
|
As at 31 January 2010 |
|
259 |
259 |
|
As at 31 July 2010 |
|
355 |
355 |
6. Cash and cash equivalents
|
|
|
31 July |
31 July |
31 January |
|
|
|
2010 |
2009 |
2010 |
|
|
|
(un-audited) |
(un-audited) |
(audited) |
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
Cash at bank and in hand |
|
1,801 |
1,359 |
2,880 |
7. Trade and other receivables
|
|
|
31 July |
31 July |
31 January |
|
|
|
2010 |
2009 |
2010 |
|
|
|
(un-audited) |
(un-audited) |
(audited) |
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
Other trade receivables |
|
518 |
431 |
524 |
|
Prepayments |
|
69 |
45 |
25 |
|
|
|
587 |
476 |
549 |
The Group has a variety of credit terms depending on the customer. The Group makes provision against trade receivables when it considers them to be impaired and takes into account the specific nature of the receivable, the Group's relationship with the customer and historic default rates.
There is no doubtful debt provision in respect of trade receivables in the current or prior period for the Group.
All debts are not past due in the current or prior period, the Group's management has received no indication that any unimpaired will be unrecoverable.
8. Trade and other payables
|
|
|
31 July 2010 (un-audited) |
31 July 2009 (un-audited) |
31 January 2010 (audited) |
|
|
|
£000 |
£000 |
£000 |
|
Other trade payables |
|
142 |
154 |
128 |
|
Non-trade payables and accrued expenses |
|
61 |
60 |
72 |
|
|
|
203 |
214 |
200 |
9. Long Term Liabilities
|
|
|
31 July 2010 (un-audited) |
31 July 2009 (un-audited) |
31 January 2010 (audited) |
|
|
|
£000 |
£000 |
£000 |
|
Loan Notes |
|
1,032 |
1,049 |
1,032 |
|
|
|
1,032 |
1,049 |
1,032 |
The Loan Notes are repayable in full on the date being five years after the date of issue, although they may be repaid in whole or in part earlier at the Company's discretion. The Loan Notes bear interest at the rate of 12 per cent per annum, payable at six monthly intervals and are secured by a floating charge over the intellectual property rights of the Company. The floating charge created by the charge will be capable of being converted into a fixed charge upon the occurrence of certain events including the failure of the Company to pay amounts due in respect of the Loan Notes when due and in the event of insolvency proceedings being instituted.
The subscribers to the Loan Notes will be issued with warrants over 3,497,443 ordinary shares. These warrants can be exercised at any time for a period of 5 years from the date of issue and are exercisable at the Placing Price. It is agreed that if any further new ordinary shares are issued at a price below the Placing Price at any time before the date that the Warrants expire, the exercise price of the Warrants will be reduced accordingly.
10. Capital and Reserves
Reconciliation of movement in capital and reserves
Group
|
|
|
Share Capital £000 |
Share premium £000 |
Retained earnings £000 |
Total parent equity £000 |
|
Balance at 1 February 2010 |
|
65 |
7,573 |
(5,572) |
2,066 |
|
Issue of ordinary share capital |
|
1 |
64 |
- |
65 |
|
Total recognised income and expense |
|
- |
- |
(1,020) |
(1,020) |
|
Balance at 31 July 2010 |
|
66 |
7,637 |
(6,592) |
1,111 |
|
Share capital |
|
|
|
|
|
|
In thousands of shares |
|
|
|
31 July 2010 (un-audited) |
31 July 2009 (un-audited) |
|
Issued for cash |
|
|
|
|
- |
|
As at 31 July 2010 - fully paid |
|
|
|
65,887 |
58,879 |
|
|
|
|
|
|
|
|
Authorised |
|
|
|
|
|
|
Ordinary shares of £0.001 each |
|
|
|
75 |
75 |
|
|
|
|
|
75 |
75 |
|
|
|
|
|
|
|
|
Allotted, called up and fully paid |
|
|
|
|
|
|
Ordinary shares of £0.001 each |
|
|
|
66 |
59 |
|
|
|
|
|
66 |
59 |
|
|
|
|
|
|
|
|
Shares classified as liabilities |
|
|
|
- |
- |
|
Shares classified in shareholders' funds |
|
|
|
66 |
59 |
|
|
|
|
|
66 |
59 |
-ENDS-
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