Interim Results for the six months to 31 July 2011

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Drug discovery activity renewed
•	New wave of work begins using network pharmacology platform
•	Focus on cancer and neurodegenerative diseases
•	Platform gains further intellectual property protection (announced September)
Clinical development programmes advanced
•	Four drugs prioritised, targeting cancer, infections and psychiatry
•	Preparations on course for four trial starts in early 2012
•	Extensive clinical data expected in 2012 and 2013
Business evolving to meet new challenges
• •	Development programmes reviewed and revised by new Development Director Steve Self Daniel Elger joins as CFO, bringing added biotech, oncology and commercial experience
•	First scientists hired for new network pharmacology discovery unit at Oxford
Balance sheet strengthened
• •	Equity placing raises net £16.7 million to invest in discovery and development Loan debt of £1.0 million repaid
•	Cash and liquid resources of £15.3 million at 31 July 2011 (31 July 2010: £1.8 million; 31 Jan 2011: £0.9 million)
•	Half-year net loss of £1.5 million (2010: loss of £1.0 million) reflects investment in business

	6 months ended 31 July	6 months ended 31 July	12 months ended 31 January
	2011	2010	2011
	(un-audited)	(un-audited)	(audited)
	£000	£000	£000
Revenue	-	-	-
Cost of sales	-	(18)	-
Gross profit	-	(18)	-
Other operating income	-	-	-
Operating expenses	(1,834)	(1,201)	(2,475)
Operating loss	(1,834)	(1,219)	(2,475)
Finance expense	(26)	-	(194)

Finance revenue	63	9	14
Loss before taxation	(1,797)	(1,210)	(2,655)
Taxation	254	190	342
Loss for the period	(1,543)	(1,020)	(2,313)
Loss per share - basic and diluted	(1.25)p	(1.55)p	(3.51)p

	6 months ended 31 July	6 months ended 31 July	12 months ended 31 January
	2011	2010	2011
	(un-audited)	(un-audited)	(audited)
	£000	£000	£000
Loss for the period Other comprehensive income	(1,543) -	(1,020) -	(2,313) -
Total comprehensive income for the period	(1,543)	(1,020)	(2,313)

		31 July	31 July	31 January
		2011	2010	2011
	Notes	(un-audited)	(un-audited)	(audited)

		£000	£000	£000
ASSETS

Non-current assets
Property, plant and equipment		33	23	16
Goodwill		-	-	-
Intangible assets	2	331	355	272
		364	378	288

Current assets
Cash and cash equivalents		15,296	1,801	927
Trade and other receivables		878	587	444
		16,174	2,388	1,371
Total assets		16,538	2,766	1,659

LIABILITIES
Current liabilities
Trade and other payables		126	203	351
Long-term liabilities
Loan	3	-	1,032	1,035
Total liabilities		126	1,235	1,386
Net assets		16,412	1,531	273
EQUITY
Share capital	4	138	66	66
Share premium account	4	25,552	7,637	7,654
Warrant reserve	4	132	420	420
Retained earnings	4	(9,410)	(6,592)	(7,867)
Capital and reserves attributable to equity holders	4	16,412	1,531	273

	Six months ended 31 July	Six months ended 31 July	Twelve months ended 31 January
	2011	2010	2011
	(un-audited)	(un-audited)	(audited)
	£000	£000	£000
Cash flows from operating activities
Loss for the period	(1,543)	(1,020)	(2,313)
Adjustments for:
Depreciation, amortisation and impairment	22	11	135
Financial income	(63)	(9)	(14)
Financial expenses	26	-	194
Equity-settled share-based payment expenses	-		18
Taxation	(254)	-	(342)
	(1,812)	(1,018)	(2,322)

(Increase)/ decrease in trade and other receivables	(46)	(38)	(26)
(Decrease)/increase in trade and other payables	11	3	(40)
Tax received	-	-	473
Net cash from operating activities	(1,847)	(1,053)	(1,915)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment	-	-	-
Interest received	59	9	14
Acquisition of property, plant and equipment	(24)	(4)	(4)
Acquisition of other intangible assets	(74)	(96)	(130)
Net cash from investing activities	(39)	(91)	(120)

Cash flows from financing activities
Issue of share capital	17,553	65	82
Issue of loan notes	(1,049)	-	-
Interest paid	(249)	-	-
Net cash from financing activities	16,255	65	82

Net increase/(decrease) in cash and cash equivalents	14,369	(1,079)	(1,953)
Cash and cash equivalents at the beginning of the period	927	2,880	2,880
Cash and cash equivalents at the end of the period	15,296	1,801	927

Companies

UK 100

Latest directors dealings

	Patents and trademarks £000	Total £000
Cost
Balance as at 1 February 2010	259	259
Other acquisitions - internally developed	96	96
Balance as at 31 July 2010	355	355
Other acquisitions - internally developed	34	34
Balance as at 31 January 2011	389	389
Other acquisitions - internally developed	74	74
Balance as at 31 July 2011	463	463

Amortisation and impairment
Balance as at 1 February 2010	-	-
Amortisation and impairment charge	-	-
Balance as at 31 July 2010	-	-
Amortisation and impairment charge	117	117
Balance as at 31 January 2011	117	117
Amortisation	1	1
Impairment	14	14
Balance at 31 July 2011	132	132

Net book value
As at 31 July 2010	355	355
As at 31 January 2011	272	272
As at 31 July 2011	331	331

	31 July 2011 (un-audited)	31 July 2010 (un-audited)	31 January 2011 (audited)
	£000	£000	£000
Loan Notes	-	1,032	1,035
	-	1,032	1,035

	Share Capital £000	Share premium £000	Warrant reserve £000	Retained earnings £000	Total parent equity £000
Balance at 1 February 2010	65	7,573	420	(5,572)	2,486
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	420	(6,592)	1,531
Balance at 1 August 2010	66	7,637	420	(6,592)	1,531
Issue of ordinary share capital	-	17	-	-	17
Share based payments	-	-	-	18	18
Total recognised income and expense	-	-	-	(1,293)	(1,293)
Balance at 31 January 2011	66	7,654	420	(7,867)	273
Balance at 1 February 2011	66	7,654	420	(7,867)	273
Issue of ordinary share capital	72	17,610	-	-	17,682
Warrants exercised and issued	-	288	(288)	-	-
Total recognised income and expense	-	-	-	(1,543)	(1,543)
Balance at 31 July 2011	138	25,552	132	(9,410)	16,412

Share capital	31 July 2011 (un-audited)	31 July 2010 (un-audited)
In issue - fully paid (in thousands of shares)	138,126	65,887

	31 July 2011	31 July 2010
	£000 (unaudited)	£000 (unaudited)
Allotted, called up and fully paid
Ordinary shares of £0.001 each	138	66
	138	66

Shares classified as liabilities	-	-
Shares classified in shareholders' funds	138	66
	138	66