TIDMCWR
RNS Number : 5327W
Ceres Power Holdings plc
10 November 2014
10 November 2014
Ceres Power Holdings plc
Final Results 2014
and
Notice of Annual General Meeting
Ceres Power Holdings plc ("Ceres", "Ceres Power" or "the Group")
today announces its final results for the year ended 30 June
2014.
Highlights:
During the reporting period:
-- Joint Development Agreement signed with Cummins Power
Generation to explore the development and commercialisation of the
Steel Cell technology for products in Cummins' core markets of
prime and backup power
-- Evaluation of the Ceres Steel Cell with KD Navien, South
Korea's largest boiler manufacturer, as part of Technology
Assessment Agreement
-- Increase of underlying revenue from near zero in 2013 to
GBP0.5 million in 2014 (total revenue increasing from GBP0.5
million to GBP1.2 million) and reduction of loss for the financial
year by approximately 1 3 from GBP11.4 million to GBP7.4
million
After the period end:
-- Successful fundraising of GBP20 million from leading
institutional investors provides the balance sheet strength to
engage with commercial partners for the next stages of joint
development and commercialisation of the technology
-- Deepening relationship with global Japanese power system
company as Joint Development Agreement signed following successful
testing in Japan and the UK over the past year
Financial Highlights:
Year Ended
Year Ended 30 June
30 June 2014 2013
GBP'000 GBP'000
-------------- -----------
Revenue 1,224 523
Recurring operating costs (10,128) (10,187)
Operating costs (10,128) (13,255)
Operating loss (8,588) (12,741)
Loss for the financial year (7,393) (11,375)
Loss per share (1.38)p (3.88)p
Net cash and short-term investments 7,699 15,437
Notice of Annual General Meeting and posting of Annual Report
and Accounts:
Notice of the Company's Annual General Meeting is hereby given
for 11:00 am on Wednesday 3 December 2014 at its offices at Viking
House, Foundry Lane, Horsham, RH13 5PX. The Company also announces
that it has posted to shareholders its Annual Report and Accounts
for the year ended 30 June 2014. The documents are also available
from the Company's website www.cerespower.com.
Alan Aubrey, Chairman, commented:
"I am delighted with the tremendous progress the Company has
made both technically and commercially. With the expected rapid
growth in the fuel cell market over the next few years, I am
particularly pleased that we have set Ceres Power on a strong
financial footing through the recent GBP20 million
fundraising."
Phil Caldwell, CEO added:
"We are now seeing the benefits of our internal developments
coming through into our customer engagements with some of the most
experienced power system companies in the world. We are building
our global profile and we have a healthy commercial pipeline for
the coming year."
For further information contact:
Ceres Power Holdings plc Tel. +44 (0)1403
273463
Phil Caldwell, Chief Executive
Richard Preston, Finance Director
Nplus1 Singer Advisory LLP Tel. +44 (0) 20
7496 3000
Ben Wright
Tavistock Communications Tel. +44 (0) 20 7920 3150
Mike Bartlett / James Collins
www.cerespower.com
Chairman's Statement
This is an exciting time in the fuel cell industry. Following a
prolonged development period we are now seeing the rapid emergence
of an industry with the commercialisation of first generation
products from leading global companies.
Growth of the sector has been particularly significant in Asia
and the US, as favourable energy policies and subsidies, combined
with a renewed interest in natural gas and billions of dollars of
investment by private companies, support this initial
commercialisation.
As with any emerging industry we are also seeing a period of
consolidation. Many of the less well-financed independent fuel cell
providers have exited the business or been acquired by larger
OEM's, and significant partnerships have been made as companies
form strategic alliances. This shows an increasing need for global
engineering companies to access capability in fuel cell
technology.
By focusing on our technology and partnering with these leading
companies we are confident that we have the right strategy to take
our technology through to product.
With the global market for fuel cells forecast to reach US$8.5
billion by 2020, this represents a significant opportunity for
those companies that can emerge as winners over the next few years.
Therefore I am particularly pleased that we have set Ceres Power on
a strong financial footing with the addition of several high
quality institutional investors through the recent GBP20 million
fundraising.
Progress
Since implementing our new strategy in 2013 Ceres has continued
to deliver against its plan.
I am especially pleased with the calibre of commercial interest
that Ceres has generated across different geographies and
applications.
This is particularly so with the signing of a Joint Development
Agreement and deepening of our relationship with one of the leading
global Japanese power systems companies and the significant
commercial progress made in a relatively short space of time with
our ongoing relationship with Cummins Power Systems in the US.
It is a huge endorsement of the technical team's capabilities
that they have been able to progress to the next stages with
customers as technically demanding as the Japanese OEMs.
By satisfying demanding customer test requirements in both the
UK and Asia, the Company has valuable third-party validation of the
Steel Cell technology's disruptive performance, particularly its
robustness.
We have made significant strides with the technology under the
leadership of Mark Selby, our Chief Technology Officer, and I am
pleased that this has been recognised by his promotion to the
board.
People
I am delighted with the tremendous progress the Company has
made, both technically and commercially, under the leadership of
our CEO Phil Caldwell in his first full year with the Company.
We have a strong dedicated team who have embraced the new
strategy and the increasing opportunities that this has generated.
This progress can be clearly seen in the Horsham facility, which
has never failed to impress the leading players from across the
industry that have visited in the past year.
We continue to invest both in adding to the team in key areas
and also the test and manufacturing infrastructure in Horsham. This
will accelerate our development and enable further customer
engagements.
I am confident that the Ceres Steel Cell technology can
transform the way that power is generated and distributed and look
forward to building on the significant progress made in the last
twelve months to further position Ceres as one of the leading
companies in the fuel cell industry in the year ahead.
Alan Aubrey
Chairman
Chief Executive's Statement
Introduction
I am positive that we have the right strategy to compete in the
rapidly growing fuel cell industry and, through the dedication of
the team working not just in the UK but also at customer sites in
Korea, Japan and the US, we have put in place a solid foundation
for our future commercial success.
Strategy
The fuel cell industry today is dominated by the large global
players who have the balance sheet strength to invest in technology
and bring first products to market in environments with favourable
energy policy and subsidies.
A partnering approach is being adopted with alliances of several
companies coming together to cover all aspects of the product
development cycle, from the design and manufacture of the core fuel
cell technology to system-level product development and the channel
to market, often through a utility or energy services company.
Our strategy of being a technology provider rather than a
product company allows us to play to our strengths and focus on our
next generation Steel Cell technology, while leveraging the
expertise of some of the world's largest power companies.
By using the same core Steel Cell technology for different
product applications across different geographies we are able to
access the growing markets of Asia and the US through strategic
partnerships and ultimately the licensing of our technology.
The licensing approach and outsourced manufacturing is often
used in the consumer electronics industry where a commercial
"eco-system" of technology designers, manufacturers and OEM's come
together to provide the products we are all reliant upon today. At
Ceres Power we are working on establishing our own eco-system of
partners.
This approach enables us to scale the business through
leveraging our partners' product development and manufacturing
capabilities in order to bring the Steel Cell technology to market
in the next generation of power products we all need for the home
and business.
The recent fundraise backed by leading institutional investors
endorses the Company strategy and gives Ceres the balance sheet
strength to engage with these leading companies at this key stage
of the Company's development.
Commercial
Over the past year we have made significant commercial progress
in building a pipeline of opportunities from the global power
sector and we have welcomed many of the leading players to our
facilities in Horsham. All of the companies we are dealing with are
leaders in their chosen markets and although not all can be
expected to go through to commercialisation, success with a
relatively small number of companies would give us a significant
market share.
One of the most satisfying aspects of the past year has been
seeing our technology successfully tested on several customer sites
in Korea and Japan. This confirms the confidence that we have in
the performance of the Steel Cell technology with third party
validation by some of the world's most experienced engineering
companies.
In January we shipped our first fuel cell power system to KD
Navien (KDN) under the terms of the Technology Assessment
Agreement, which has undergone extensive testing at an independent
Korean test house and then at KDN's own facility near Seoul. As a
first deployment outside of the UK we have made great progress and
learnt a tremendous amount about how our technology performs in
different environmental conditions.
We have successfully demonstrated superior performance for
cycling and robustness compared to similar solid oxide fuel cell
(SOFC) technologies and have agreed to extend the testing period to
enable modification for localised conditions and ensure we
reproduce the same performance at KDN as in the UK. During this
time we have built a strong working relationship with the KDN team
and in parallel to the testing we are in discussions for the next
phases of the relationship to jointly develop a product for the
Korean and international markets based on the Steel Cell
technology.
I am extremely pleased with our progress in Japan this year,
since opening our office in Kyoto in April and culminating in the
recently signed next stage Joint Development Agreement with one of
the leading Japanese power system companies. This follows extensive
evaluation of the Steel Cell technology over the past year with
testing in the UK and at the customer's facility in Japan. There is
particular interest in the robustness and cycleability of the Steel
Cell for different applications such as conventional generators,
which has often been a problem for other SOFC technologies in the
past. Under this agreement the companies will jointly develop a
fuel cell stack using the Ceres Steel Cell technology combined with
the engineering and design expertise of the Japanese OEM, to be
built in the UK and then tested in Japan for its application for
both residential and generator systems. Japan is a key market for
us and we have developed a strong commercial pipeline and expect
several more companies to enter evaluation stages in the coming
months.
Recent advancements in the efficiency of the technology have
opened up the opportunity for us to explore other applications,
with a particular focus on the North American market. In March we
signed a strategic Joint Development Agreement with Cummins Power
Generation, a global provider of power systems, including those for
the data centre and back-up power markets. The purpose of the
collaboration is to explore the joint development and
commercialization of the Steel Cell technology for products in
Cummins' existing markets. There is significant interest in
distributed generation using fuel cells in the US and we are
exploring several commercial opportunities, which we expect to
progress to the next stages in the coming year.
As part of our business strategy we are also further developing
our relationships with energy companies and utilities in different
regions and are starting to explore strategic partnerships for
manufacturing scale-up in key markets such as Asia.
Technology
The Board has been very pleased with progress made this year
against our technology roadmap. In the last year the technology
team has continued to evaluate the ability of the technology to
compete in the most advanced markets in the world for fuel cell
power generation, namely the rapidly maturing Japanese consumer
scale CHP units and the emerging "power only", or prime power,
market in North America.
We have also supported our customers with their own technology
evaluation programmes, which have allowed them to validate our
technology's unrivalled ability to shutdown repetitively in planned
and unplanned scenarios.
I am most excited by the improvement in electrical efficiency
from 50% published this time last year to over 57%. Operation in an
unoptimised CHP prototype product showed 47% net efficiency, which
puts our technology firmly in the same high-efficiency category as
m-CHP products on sale today in Japan, but at a much lower overall
cost, improving potential savings for domestic micro-CHP customers.
Looking to the future, our roadmap for the next period includes
activities that aim to increase efficiency and power density still
further and will strengthen our cost USP against other
technologies.
With the support of a GBP1 million government grant from the
Department of Energy and Climate Change (DECC) to accelerate the
worldwide commercialisation of this technology, the team has made
great strides in improving the Fuel Cell Module design, including
improving emissions compliance at system level. This is key to
enable adoption in all our target markets and it offers our
partners an easier route to developing products around the
technology.
Across all areas of our technology we continue to generate and
protect our intellectual property. We file numerous patents where
they strengthen our position and protect our competitive advantage,
and since June 2013 we have increased the number of patent and
trade mark families we have filed for from 33 to 39.
Our focus on increasing efficiency of the core Steel Cell
technology combined with system development with our partners gives
us confidence that we can address larger scale prime power
applications where this is the main requirement.
Manufacturing and Operations
In manufacturing, the Company's operational focus has been
continuing the supply of quality fuel cells to the various internal
and customer programmes, as well as investing in improvements to
the manufacturing processes. For example, our recent partnership
with DEK (part of ASM Assembly Solutions), a global provider of
screen printing equipment, coupled with grant funding of GBP0.7
million from the Technology Strategy Board, which we announced in
August 2014, is a key enabler to scale up some of our key processes
more cost-effectively. The collaboration combines DEK's latest high
speed photovoltaic manufacturing processes with Ceres existing
manufacturing capability.
In the coming year we will continue to develop our manufacturing
processes to enable further capacity, initially in the UK, and we
will explore further scale-up with global manufacturing partners in
line with our business strategy.
Financial
Apart from meeting commercial and technical milestones, we
measure success of the business through careful management of the
Company's resources and by measuring progress on our financial
milestones.
The Company's loss for the financial year decreased from GBP8.3
million in 2013 (excluding restructuring costs of GBP3.1 million)
to GBP7.4 million. As the weighted average number of shares in
issue increased from 293 million to 537 million, the loss per
ordinary share decreased from 3.88p to 1.38p.
Total revenue increased from GBP0.5 million in the year ending
30 June 2013 to GBP1.2 million in the current year. Excepting
releases of deferred revenue in both the prior year (Calor Gas
GBP0.5 million) and the current year (Bord Gais Eireann GBP0.7
million), the Group has increased its underlying revenue from
GBP13,000 in the year ending 30 June 2013 to GBP0.5 million in the
current year. This reflects the continued progress the Company has
made in developing new and deepening existing partner
relationships.
Control of the Company's cost base is vital to Ceres. We are in
a growth phase and we do expect our cost base to increase as we
service customers and rebase from our restructuring in 2013. The
Board is comfortable with the recurring operating costs of GBP10.1
million (2013: GBP10.2 million), which is necessary to continue the
development and productionisation of the technology.
At the year end the Company had GBP7.7 million in cash and cash
equivalents, having used GBP7.3 million net cash in operations in
the period (2013: GBP7.3 million), and with the addition of the
GBP20 million gross raised via an oversubscribed private placing in
July 2014, the Group is well financed to deliver the next phase of
its business plan.
During the year the Company began again to invest significantly
in capital equipment (GBP0.5 million based on cashflow during the
year, compared to GBP42,000 in 2013), which will be used to
accelerate the technology development cycle. The single largest
investment in 2014 is GBP1 million of new test facilities, which
was part complete at year end.
Ceres is also making excellent use of the available government
grants and is grateful for their availability, recognising GBP0.6
million in the year (2013: nil). Another important form of funding
to the business is receiving R&D tax credits. We received
GBP1.1 million of tax credit relating to the prior year and we
estimate to recover a similar amount for the current year.
People
I continue to be impressed with the whole team at Ceres. Their
commitment over the year has been excellent, and the Board
recognises the importance of everyone's contribution to achieving
the Company's goals. During the year we have recruited new
colleagues in order to deliver our internal and external
programmes, and we will continue to recruit the right resource to
help us deliver to our objectives.
As the Chairman has stated in his report, since the year end we
have promoted Mark Selby, Chief Technology Officer, to the main
Board of Directors of the Company. This reflects his leadership and
his active contribution to the development of our technology.
Risks
The Group faces a number of risks and uncertainties, which could
affect the execution of its strategic objectives. The key business
risks and the key financial risks are detailed in the Annual
Report.
Outlook, key objectives and KPI's
In the past year we have laid a solid technical foundation and
executed customer programmes to an extremely high standard of
performance. We are now seeing the benefits of our internal
developments coming through into our customer engagements with some
of the most experienced power system companies in the world. We are
building our global profile and we have a healthy commercial
pipeline for the coming year.
Ceres considers its financial key performance indicators to be
revenue from commercial activities, operating costs, and
maintaining a strong cash position.
In the coming year I expect further revenue growth through
advancement of partners to next stage Joint Development Agreements
and bringing on new partners at the evaluation stage.
We will manage operating costs to support commercial activity
and further investment will be made in the technical team and our
test and manufacturing capabilities at Horsham as we pursue our own
roadmap to produce a Steel Cell technology that is fit for real
world applications in all metrics of performance and cost.
The valuable third party validation we have received from our
OEM partners reinforces our confidence that our Steel Cell
technology has the potential to become the standard next generation
fuel cell technology.
This is a very exciting time in this rapidly growing industry
and at Ceres Power we are well positioned to become one of the
leading companies in this sector.
Phil Caldwell
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2014
Year ended Year ended
30 June 30 June
2014 2013
Note GBP'000 GBP'000
Revenue 1,224 523
Cost of Sales (265) (10)
Gross Profit 959 513
Operating costs 2 (10,128) (13,255)
Other operating income 581 1
Operating loss (8,588) (12,741)
Finance income 73 55
Loss before income tax (8,515) (12,686)
Income tax credit 1,122 1,311
Loss for the financial year and total
comprehensive loss (7,393) (11,375)
=========== ===========
Loss per GBP0.01 ordinary share expressed
in pence per share:
Basic and diluted loss per share 3 (1.38)p (3.88)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2014
30 June 30 June
2014 2013
Note GBP'000 GBP'000
------------------------------------------------ ---- -------- --------
Assets
Non-current assets
Property, plant and equipment 1,657 2,181
Other receivables 58 53
------------------------------------------------ ---- -------- --------
Total non-current assets 1,715 2,234
------------------------------------------------ ---- -------- --------
Current assets
Trade and other receivables 1,219 454
Current tax receivable 1,166 1,044
Short-term investments 6 - 6,207
Cash and cash equivalents 6 7,699 9,230
------------------------------------------------ ---- -------- --------
Total current assets 10,084 16,935
Liabilities
Current liabilities
Trade and other payables (1,143) (1,089)
Provisions for other liabilities and charges (242) (261)
Total current liabilities (1,385) (1,350)
------------------------------------------------ ---- -------- --------
Net current assets 8,699 15,585
------------------------------------------------ ---- -------- --------
Non-current liabilities
Accruals and deferred income (1,175) (1,918)
Provisions for other liabilities and charges (1,166) (1,293)
------------------------------------------------ ---- -------- --------
Total non-current liabilities (2,341) (3,211)
------------------------------------------------ ---- -------- --------
Net assets 8,073 14,608
------------------------------------------------ ---- -------- --------
Equity attributable to the owners of the Parent
Share capital 4 5,369 8,817
Share premium account 72,907 72,906
Capital redemption reserve 3,449 -
Other reserve 7,463 7,463
Accumulated losses (81,115) (74,578)
------------------------------------------------ ---- -------- --------
Total equity 8,073 14,608
------------------------------------------------ ---- -------- --------
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2014
Year ended Year ended
30 June 30 June
2014 2013
Note GBP'000 GBP'000
------------------------------------------------------- ---- ---------- ----------
Cash flows from operating activities
Cash used in operations 5 (8,252) (10,016)
Income tax received 1,000 2,667
------------------------------------------------------- ---- ---------- ----------
Net cash used in operating activities (7,252) (7,349)
------------------------------------------------------- ---- ---------- ----------
Cash flows from investing activities
Purchase of property, plant and equipment (520) (42)
Movement in short-term investments 6,207 (6,207)
Finance income received 75 57
------------------------------------------------------- ---- ---------- ----------
Net cash generated from/(used in) investing
activities 5,762 (6,192)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 2 12,591
Net cash generated from financing activities 2 12,591
------------------------------------------------------- ---- ---------- ----------
Net decrease in cash and cash equivalents (1,488) (950)
Exchange (losses)/gains on cash and cash equivalents (43) 2
------------------------------------------------------- ---- ---------- ----------
(1,531) (948)
Cash and cash equivalents at beginning of year 9,230 10,178
------------------------------------------------------- ---- ---------- ----------
Cash and cash equivalents at end of year 6 7,699 9,230
------------------------------------------------------- ---- ---------- ----------
Reconciliation to net funds
Opening net funds 15,437 10,178
Net decrease in cash and cash equivalents (1,531) (948)
(Decrease)/increase in short-term investments (6,207) 6,207
------------------------------------------------------- ---- ---------- ----------
Closing net funds (note 6) 7,699 15,437
------------------------------------------------------- ---- ---------- ----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2014
Share Capital
Share premium redemption Other Accumu-lated
capital account reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
At 1 July 2012 4,311 64,821 - 7,463 (63,617) 12,978
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Comprehensive income
Loss for the financial year - - - - (11,375) (11,375)
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Total comprehensive loss - - - - (11,375) (11,375)
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Transactions with owners
Issue of shares, net of costs 4,506 8,085 - - - 12,591
Share-based payments charge - - - - 414 414
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Total transactions with owners 4,506 8,085 - - 414 13,005
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
At 30 June 2013 8,817 72,906 - 7,463 (74,578) 14,608
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Comprehensive income
Loss for the financial year - - - - (7,393) (7,393)
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Total comprehensive loss - - - - (7,393) (7,393)
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Transactions with owners
Issue of shares, net of costs 1 1 - - - 2
Cancellation of deferred shares,
net of costs (3,449) - 3,449 - - -
Share-based payments charge - - - - 856 856
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Total transactions with owners (3,448) 1 3,449 - 856 858
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
At 30 June 2014 5,369 72,907 3,449 7,463 (81,115) 8,073
--------------------------------- -------- -------- ----------- ---------------- ------------ --------
Notes to the final announcement
1. Basis of preparation
The final announcement for the year ended 30 June 2014 has been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union, the IFRS
Interpretations Committee (IFRS-IC) interpretations and those parts
of the Companies Act 2006 applicable to companies reporting under
IFRS. The financial information contained in this final
announcement does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. The financial information
has been extracted from the financial statements for the year ended
30 June 2014, which have been approved by the Board of Directors
and the comparative figures for the year ended 30 June 2013 are
based on the financial statements for that year. The accounts for
2013 have been delivered to the Registrar of Companies and the 2014
accounts will be delivered after the Annual General Meeting. The
auditors have reported on both sets of accounts without
qualification, did not draw attention to any matters by way of
emphasis without qualifying their report and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act
2006.
2. Operating costs
Operating costs are split as follows:
Year ended Year ended
30 June 2014 30 June 2013
GBP'000 GBP'000
------------------------------------------------------ ------------- -------------
Operating costs are split as follows:
Research and development costs 7,138 7,190
Administrative expenses - recurring 2,990 2,997
------------------------------------------------------ ------------- -------------
10,128 10,187
Administrative expenses - non-recurring restructuring
related - 3,068
------------------------------------------------------ ------------- -------------
10,128 13,255
------------------------------------------------------ ------------- -------------
Non-recurring costs incurred in 2013 relate to the disposal of
property, plant and equipment (GBP759,000) and termination payments
and provisions for onerous leases (GBP2,309,000).
3. Loss per share
Basic and diluted loss per GBP0.01 ordinary share are calculated
by dividing the loss for the financial year attributable to
ordinary shareholders by the weighted average number of ordinary
shares in issue during the year. Given the losses during the year,
there is no dilution of losses per share in the year ended 30 June
2014 or in the previous year.
The loss for the financial year ended 30 June 2014 was
GBP7,393,000 (2013: GBP11,375,000) and the weighted average number
of GBP0.01 ordinary shares in issue during the year ended 30 June
2014 was 536,831,883 (2013: 292,793,498).
4. Share capital
2014 2013
-------------------- --------------------
Number GBP'000 Number GBP'000
--------------------------------------- ----------- ------- ----------- -------
Allotted and fully paid
At 1 July 536,799,123 8,817 86,215,662 4,311
Allotted under share option schemes 32,850 1 2,235,838 22
Allotted on cash placing & open offer - - 448,347,623 4,484
Transfer to capital redemption reserve -(1) (3,449) - -
Ordinary shares of GBP0.01 each at
30 June 536,831,973 5,369 536,799,123 8,817
--------------------------------------- ----------- ------- ----------- -------
(1) 86,215,662 GBP0.04 deferred shares were cancelled in the
year. These deferred shares were not included in the number of
ordinary shares disclosed in this table.
During the period the deferred shares of GBP0.04 each were
cancelled with GBP3,448,626 being transferred to a capital
redemption reserve and 32,850 ordinary shares of GBP0.01 each were
issued on the exercise of employee share options for cash
consideration of GBP1,642. (2013: On 18 December 2012 each existing
ordinary share of GBP0.05 was sub-divided into one new ordinary
share of GBP0.01 and one deferred share of GBP0.04. On that date
the Company issued 330,000,000 ordinary shares of GBP0.01 each in a
placing and open offer for cash consideration of GBP3,300,000. On 2
April 2013 the Company issued 118,347,623 ordinary shares of
GBP0.01 each in a placing and open offer for cash consideration of
GBP9,467,810 (before deducting issue costs of GBP208,050). Also
2,235,838 ordinary shares of GBP0.01 each were issued on the
exercise of employee share options for cash consideration of
GBP31,792).
5. Cash used in operations
Year ended Year ended
30 June 2014 30 June 2013
GBP'000 GBP'000
--------------------------------------------------- ------------- -------------
Loss before income tax (8,515) (12,686)
Adjustments for:
Other finance income (73) (55)
Depreciation of property, plant and equipment
(net of amortised grant contributions) 1,069 1,322
Disposal of property, plant and equipment - 759
Share-based payments charge 856 414
--------------------------------------------------- ------------- -------------
Operating cash flows before movements in working
capital (6,663) (10,246)
(Increase)/decrease in trade and other receivables (773) 163
Decrease in trade and other payables (670) (861)
(Decrease)/increase in provisions (146) 928
--------------------------------------------------- ------------- -------------
(Increase)/decrease in working capital (1,589) 230
--------------------------------------------------- ------------- -------------
Cash used in operations (8,252) (10,016)
--------------------------------------------------- ------------- -------------
6. Net cash, short-term investments and financial assets
30 June
2014 30 June 2013
GBP'000 GBP'000
-------------------------------------------- -------- ------------
Cash at bank and in hand 982 576
Money market funds 6,717 8,654
Cash and cash equivalents 7,699 9,230
Short-term bank deposits greater than three
months - 6,207
-------------------------------------------- -------- ------------
7,699 15,437
-------------------------------------------- -------- ------------
The Group typically places surplus funds into pooled money
market funds and bank deposits with durations of up to twelve
months. The Group's treasury policy restricts investments in
short-term sterling money market funds to those which carry
short-term credit ratings of at least two of AAAm (Standard &
Poor's), Aaa/MR1+ (Moody's) and AAA V1+ (Fitch) and deposits with
banks with minimum long-term rating of A/A-/A3 and short-term
rating of F-1/A-2/P-2 for banks which the UK Government holds less
than 25% ordinary equity.
7. Post balance sheet event
During July 2014 the Company completed a private placing which
raised GBP20 million gross through the issue of 235,705,868
ordinary shares.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKSARSBAARUA
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