TIDMIVO
Embargoed: 0700hrs, 27 April 2009
Imperial Innovations Group plc
("Imperial Innovations" or "the Group" or "the Company")
Interim Results for the Six Months Ended 31 January 2009
HIGHLIGHTS FOR THE SIX MONTHS ENDED 31 JANUARY 2009
Business Highlights
* Sale of portfolio company, Thiakis, to Wyeth for up to GBP99.4 million
comprising an upfront payment of GBP19.6 million followed by additional
potential milestones. The Group owned 23.7% of Thiakis and the potential
net value to the Group from receipts and the additional milestones is GBP
16.1m.
* Post period end led investment of GBP10.0 million in next generation battery
company Nexeon by Invesco, Partnerships UK, Imperial Innovations.
* Continued flow of intellectual property with 161 invention disclosures
(H1 2008: 150, FY 2008: 354) and 23 patents filed (H1 2008: 24, FY 2008:
55).
* Five companies seed funded with launch management teams: Cortexica Vision
Systems, Myotec, Navion Pharma, Novacem and Smart Surgical Appliances.
* In early April 2009 the Group invested a further GBP1.2 million as a first
draw down on a GBP2.5 million committed investment in Veryan Medical.
* Significant commercial and technological milestones achieved by technology
companies.
* First transactions completed by the Group's FSA regulated entity in
February 2009.
* With cash resources and tight overheads, the Group is well capitalised to
invest in quality technology companies at attractive prices behind
experienced management teams.
Financial Highlights
* Reported Profit GBP1.3 million (H1 2008: loss (GBP2.2 million), FY 2008: loss
(GBP5.9 million)).
* Royalty income up 80% to GBP0.9 million (H1 2008: GBP0.5 million, FY 2008: GBP
0.9 million).
* Cash and short term liquidity investments at 31 January 2009 GBP41.9 million
(H1 2008: GBP46.9 million, FY 2008: GBP43.1 million) with zero borrowings.
* Cash realised from the sale of holdings in portfolio companies GBP
3.3 million (H1 2008: GBP3.6 million, FY 2008: GBP3.6 million).
* Cash invested in portfolio companies GBP2.8 million (H1 2008: GBP2.9 million,
FY 2008: GBP6.1 million). Since 31 January 2009 the Group has invested a
further GBP5.5 million in 6 companies.
* Net Assets GBP81.5 million (H1 2008: GBP82.9 million, FY 2008: GBP80.3 million).
* Annualised overheads cut by GBP0.8 million.
For further information please contact:
Imperial Innovations
Martin Knight, Chairman
Susan Searle, Chief Executive Officer
Julian Smith, Chief Financial Officer
Tel. +44 (0)20 7594 6589
M:Communications
Patrick d'Ancona or Ben Simons
Tel. +44 (0)20 7153 1540
J.P. Morgan Cazenove (NOMAD to Imperial Innovations)
Steve Baldwin
Tel. +44(0)20 7588 2828
CHAIRMAN'S STATEMENT
At a time of great economic uncertainty, it seems paradoxical to suggest that
Imperial Innovations is better placed than it has been to deliver shareholder
value from its business model. What lies behind this relative confidence at
such a time?
Firstly, the Government has made it very clear that the "science agenda" sits
at the centre of the debate about the future of the British economy. The
general acceptance of this perspective is important for the quality and
quantity of intellectual property which will become available for exploitation
by the Group. The intellectual property pipeline remains strong and shows every
sign of continuing to be so.
Secondly, Imperial Innovations' business model has very clearly focused not on
financial engineering, but on building businesses. Funding spin out companies
properly and putting in experienced and motivated management teams has been at
the heart of Innovations' work. We are now seeing the benefits of this emphasis
on building businesses in the real progress being exhibited in our portfolio
companies. The sale of Thiakis in December 2008 was a significant moment for
the Company. The progress in the spin out portfolio gives confidence that there
will be further disposals at attractive prices.
Thirdly, the shock to the global financial system, in Autumn 2008, led the
Board to carry out a comprehensive portfolio review and business analysis. The
subsequent refocusing of activities core to the future of the Group and its
investments, with a reduction in headcount and overheads, was clear evidence
that management understand the business drivers behind delivering shareholder
returns. The second outcome of this review was a sharpened focus on the optimum
utilisation of the cash resources of the Group in the investment decision
making process, to reflect a more acute awareness of where the real value lies
in the Group's assets. In a tough business climate, where cash is king,
scrupulously targeted allocation of this scarce resource is critical.
At the beginning of the Group's financial year, David Allen joined the Board.
His background as a Director of BP for 5 years, and his long involvement in
energy and technology, have ensured his immediate and positive engagement in
the business. I am grateful to all the members of the Board for their
commitment to the success of Imperial Innovations and to the staff for their
determination to deliver shareholder returns from the business model.
Dr Martin Knight
Chairman
CHIEF EXECUTIVE'S REPORT
OVERVIEW
Imperial Innovations reported a profit of GBP1.3 million for the half year. The
Group is making good progress, transitioning from a model to an established
business where growing equity realisations and reported profit can be expected,
although the pattern may still be lumpy. Another step in this transition was
the trade sale exit of Thiakis in December 2008 - we believe this is the start
of realisations to come over subsequent years.
Wyeth Pharmaceuticals bought Thiakis for GBP99.4 million, comprising an upfront
payment of GBP19.6 million followed by potential milestones totalling GBP
79.8 million. We owned 23.7% of the company prior to the sale, received GBP
2.9 million net of revenue share in December 2008 and have the potential to
receive a further GBP13.2 million net of revenue share, subject to milestones.
Wyeth will fund the development of the Thiakis product. Whilst our equity
holding in Thiakis has been sold, Innovations will continue to benefit from a
royalty on the sale of the product if it gets to market. The drug has the
potential to treat metabolic disease and the obesity market alone is estimated
to grow to some GBP8.5 billion by 2020. A royalty stream from this product is
feasible from as early as 2014.
Royalty income is up 80% at GBP0.9 million against the comparative half year.
This is welcome because it represents the potential for growing recurring
revenue whilst inevitably trading income from one-off upfront fees and services
is suffering due to the recession. When a licence deal is concluded it means a
partner is then funding the development of the technology. Whilst upfront
payments might be modest, our priority is to conclude deals so that the
potential for further downstream royalties exists.
Our approach to building technology businesses, with experienced management
teams and products that are technically sound, is delivering results. We have a
group of companies with world class management teams, experienced boards and
technologies that addresses large market opportunities, validated by industry
partners. For example, in February 2009, we raised GBP10 million for Nexeon,
which is developing silicon anodes for lithium ion batteries, a growing market
worth over $10 billion (which some analysts expect to increase to $30 billion
by 2018). Imperial Innovations invested GBP4.0 million alongside GBP5.0 million
from Invesco and GBP1.0 million from Partnerships UK resulting in Innovations
having a 38.7% stake. Scott Brown joins Nexeon as CEO (from Cambridge Display
Technology) in June 2009 and joins an experienced board, operational and
technical team.
In October 2008, we conducted an intensive review of our portfolio. We are
focusing on those companies where we believe the ingredients of management,
money, customer market and people are right - ensuring that they are well
funded and have the optimum chance to succeed.
We have taken steps to trim the cost base of the Group by an annualised amount
of around GBP0.8 million. With cash in the bank we are well capitalised to invest
in quality technology companies and have confidence in the ability of our
portfolio and technologies to deliver value. The current climate creates a
great opportunity to match great science with talented management and invest at
attractive prices.
Key Financial Highlights
We reported a profit for the half year of GBP1.3 million. The Nexeon transaction
was concluded ten days after the half year and will result in an additional net
GBP4.1 million fair value uplift on the existing holding which will come through
in the full year results. We reported a profit despite a continued fall in our
quoted company holdings, primarily Ceres Power, which fell by GBP2.0 million to GBP
2.4 million. Quoted holdings, however, only represent 8.0% of our portfolio
value. We remain well capitalised with GBP41.9 million in cash and short term
liquidity investments and are in a strong position to back our companies and to
support them when other sources of funding may not be so readily available.
During the half year we invested GBP2.8 million in our portfolio of companies
with a range of seed and follow-on rounds. Companies that completed fund
raisings and milestone based draw downs included Evo Electric, Inforsense,
Myotec, Medcell, Molecular Vision, Osspray and STS. Since the half year, we
have invested a further GBP5.5 million, taking our total investment for this
financial year to GBP8.3 million with investments of GBP1.25 million in Veryan
Medical, GBP4 million in Nexeon and a seed round in Cortexica. We sold our
holding in Thiakis resulting in an immediate GBP2.9 million cash receipt (after
revenue sharing obligations) leaving a further potential net consideration of GBP
13.2m based on future milestones.
The fair value gain on our unquoted portfolio was GBP4.1 million (12%), since the
start of the financial year. The February 2009 investment in Nexeon, which will
result in a net fair value uplift of GBP4.1 million, would move this gain to 24%
for the financial year - a pleasing performance in the current climate. Our net
asset value rose by GBP1.3 million to GBP81.5 million.
Royalty income at GBP0.9 million was up 80% compared with the same period last
year, but trading income fell to GBP2.4 million (H1 2008: GBP2.8 million, FY 2008:
GBP5.3 million). We reduced our cost base, taking voluntary redundancies
resulting in annual savings of circa GBP0.8 million the financial effect of which
we will start to see towards the end of this financial year.
Our Company Portfolio and Approach to Investment
At the start of the year, facing the impact on co-investors of the global
recession and liquidity restrictions, we reviewed our investment policy. We
segmented our portfolio based on the stage of development of the company, its
financing requirements, the strength of the management team, the technology and
market potential and likely time to break-even or exit. A number of companies
are reaching a more mature stage and we have chosen to invest significant time
ensuring that these businesses have top quality boards and management teams and
are funded to deliver. Our intention is for the strong companies to get
stronger.
Prospective new ventures need to be incubated well and built to thrive in the
current challenging environment. This places even greater emphasis on building
top quality management teams around our world class technologies matching
talent and science. We are capital efficient with these companies, using grants
to get through the proof stage, stretching seed funding by managing costs and
leveraging grant funding sources. However, when businesses are ready for
accelerated growth we will not hold back from fully capitalising them.
I have detailed below the progress made in a selection of some of our more
advanced companies.
Thiakis
Thiakis was sold to Wyeth for GBP99.4 million comprising an upfront payment of GBP
19.6 million followed by potential milestones totalling GBP79.8m. Imperial
Innovations co-founded Thiakis with Professor Stephen Bloom of Imperial College
and CEO, Dr John Burt, four years ago. Imperial Innovations owned 23.7% of the
company prior to the sale. Wyeth will fund the development of Thiakis' product
and we will continue to benefit from a royalty on the sale of the product if it
gets to market. Including contingent consideration, this represented an 11x net
return on the GBP1.5 million invested, excluding future royalties. Under new
ownership, Thiakis continues to develop its analogue of the peptide hormone
oxyntomodulin, for the treatment of obesity, including the potential
amelioration of diseases associated with excess weight such as type 2 diabetes
and cardiovascular disease. These products address a forecast GBP8.5 billion
market.
Nexeon
Nexeon is developing silicon anodes for lithium-ion batteries and was
co-founded by Imperial Innovations and Professor Mino Green of Imperial
College, London. Having started life in the Imperial incubator, Nexeon now
boasts a fully operational pilot plant, producing sufficient material to make
high volumes of battery cells per day. On 10 February 2009 Imperial Innovations
Investment Management, our FSA regulated company, led a GBP10.0 million round
with the Group investing GBP4.0 million. Nexeon will use the proceeds to
construct a development and pilot-scale manufacturing facility. Bill Macklin
joined as Chief Technology Officer and is an expert in lithium-ion batteries,
formerly Technology Director at ABSL Power Solutions. Scott Brown, formerly
Executive Vice President Commercial, IP and Research of Cambridge Display
Technology, was appointed CEO and will join Nexeon in June 2009. Nexeon's
technology addresses a market worth over $10 billion and the Group holds a
38.7% equity stake in Nexeon.
Veryan Medical
Veryan is developing a platform of vascular technologies re-introducing natural
swirling blood flow mimicking the body's natural defence against vascular
disease using a unique 3D helical geometry. Veryan's BioMimic 3D stent has now
demonstrated that it reduces the formation of new disease in the artery and
proves to be structurally stronger than existing stents and significantly less
prone to fracture. During the period, the company appointed Geoffrey Vernon,
formerly a director of Rothschild Asset Management and partner at Advent as
chairman. Geoffrey has 30 years experience in Medical Devices. In early April
2009 Imperial Innovations invested a further GBP1.2 million (and committed a
further GBP1.3 million) to fund pivotal trials of its products. Veryan is working
closely with leading stent manufacturers. The stent market addressable by
Veryan's technology is forecast at $1 billion and we hold a 37.6% equity stake
in Veryan.
Circassia
Circassia is a clinical stage speciality biopharmaceutical company focused on
developing medicines designed to control the immune system responses. In
September 2008, Circassia announced successful phase II clinical results with
its ToleroMune anti-allergy technology. The trial shows that treatment can
substantially reduce allergic reactions to the allergen that causes most cat
allergies and that it was well tolerated by all patients. In January 2009 it
confirmed that it had completed patient recruitment for a further phase II
treatment regime trial. Circassia's approach has potential for treatment of a
range of allergies. The allergy market addressed by the Circassia technology is
worth about GBP9 billion and we hold a 14% equity stake in Circassia.
Polytherics
Polytherics applies its proprietary technologies in targeted precision
chemistry to the optimisation of proteins as Biopharmaceutical products. The
company has expanded its intellectual property base beyond product half-life
optimisation into modular assembly of proteins with novel activity and function
enabling the design of products beyond genetic engineering. Professor Simon
Best, formerly chairman of the Bio Industries Association (BIA) joined the
board as a non executive director in November 2008. Simon is a serial
entrepreneur and has built three substantial ventures. Polytherics' technology
has the ability to address a rapidly growing biopharmaceutical market worth
$63 billion and we hold an 18.9% stake.
Respivert:
Respivert was established to identify a new generation of inhaled treatments
for serious lung disease. The company is progressing three discrete programs,
all of which are expected to enter clinical development in 2010, led by Dr
Garth Rapeport (CEO). Dr Rapeport was Head of the division for respiratory and
inflammatory disease at GSK. Rudi Pauwels is Chairman and is a pharmaceutical
scientist, an entrepreneur who started Tibotec and Galapagos Genomics. The
company remains on track to enter the clinic in 2010. The Global asthma / COPD
market its products address is estimated to be $18.1 billion and the Group's
holding is 15%.
NEW VENTURES (incubating companies)
Our new companies continue to get independent recognition. Novacem is
developing a new generation of green carbon negative cement that will help
combat global warming by locking atmospheric carbon dioxide into construction
materials. Novacem won the Energy Environmental Rushlight Award for its
contribution to addressing environmental issues. Novacem has just moved into
the incubator and is in the process of raising its seed funding. John Hamlin,
one of our Entrepreneurs in Residence, has taken the role of CEO of Plaxica, a
company developing a new low cost process for the production of a new
generation polylactic acid; a polymer that is biodegradable and has potential
widespread use with the properties and cost to compete in a market worth
$85 billion with the established high volume polymers like polypropylene,
polystyrene and PET.
During the half year we seed funded five companies including:
Navion Pharma: a new therapeutics company focusing on discoveries in the area
of cancer and metastatic (secondary) cancer. We have built a strong team
including Chris Woods (formerly chairman and CEO of Bioenvision inc), a proven
entrepreneurial chair; Professor Mustafa Djamgoz, the scientist whose research
the company is based on; Nigel Burns (also chairman of Cellmedica and formerly
Senior Vice President at Cambridge Antibody Technologies), who brings proven
skills in the technology's development; and Prof Charles Coombes, a leading
cancer clinician. The company is operating in a "low-burn" model while it
develops the proof-of-principle data and its lead technology prior to scaling
the business around a proven proposition.
Cortexica Vision systems: a new software company building solutions for
analysing video images. Based on the way the human brain interprets visual
images this system promises for efficient and more accurate analysis of video
enabling new analysis products to be made economically viable. A team of track
record entrepreneurs, Nick Kingsbury (formerly global sector head for
information technology investments at 3i) and Scott White (serial entrepreneur
and formerly CEO of Azea networks), worked with the research team, Dr Anil
Bharath and Dr Jeffrey Ng and have developed a business focusing on providing
solutions for brand management, marketing and advertising. The funding will
enable them to build solutions based on explicit customer needs and to present
a case for growth funding on the basis of that customer engagement.
Smart Surgical Appliances: a medical device company developing sensor-enabled
surgical instrumentation that improves the safety and clinical efficiency of
minimally invasive surgery e.g. keyhole surgery. The company is leveraging the
seed funding with government grant funding to develop its first product to
proof-of-principle and enabling the investment money to focus on commercial
development. It expects further grant funding to enable it to widen its
product portfolio. The company recently recruited executive chair, Paul
Donnelly, formerly general manager at Johnson & Johnson, and more recently CEO
of a private equity backed medical device business.
THE TECHNOLOGY PIPELINE
We received 161 invention disclosures (H1 2008: 150) and filed 23 new patents
(H1 2008: 24) - our pipeline is healthy. We concluded a range of small licence
deals, for example an oil well riser technology (Petronas), a transgenic model
(GlaxoSmithkline), a serum factor (Novartis), a database (Servier) and
pacemaker algorithm (MedImmune). We completed 9 new agreements (options,
licences or assignments). A total of GBP0.5 million of licence revenue was
generated and a further GBP0.9 million generated through royalties from the new
and existing portfolio of commercial agreements.
We supported ten applications from Imperial College during the period for large
scale translational funding from organisations like the Wellcome Trust and
Medical Research Council. This is important because it helps to advance our
earlier pipeline. There are a range of market areas where we believe industry
is seeking solutions which include: advanced materials, super capacitors,
plastic electronics, photovoltaics, optics, catalysts, medtech, fluid dynamics
and nanotechnology. We hope to see new technologies and companies created in
these areas.
We continue to work with a range of partners to source complementary ideas,
incubate propositions, access customers and gain market knowledge. A small
team, Commercialisation Services, manages contracts with the Carbon Trust,
Kuwait Petroleum Co and WRAP for incubation support and with the National
Physical Laboratory and Cranfield University on the commercialisation of ideas.
I2india, co-founded with management, Chairman Chris Mathias, business angels
and TATA group has established operations in Bangalore. It has entered into a
number of agreements with Indian research organisations and has begun to
commercialise various technologies.
Our access to industry partners, the customers for our technologies, continues
to be an important differentiator and is helped greatly by Imperial College's
reputation in engineering, environment, energy and medicine.
Whilst we must operate in a difficult economic climate, we believe that our
consistent approach to the development of technology opportunities and
companies will deliver results.
Susan Searle
Chief Executive Officer
FINANCIAL REVIEW
Summary
The Group generated a profit of GBP1.3 million in the first half of the year
(H1 2008: loss GBP2.2 million, FY 2008: loss GBP5.9 million). Cash and short term
liquidity investments at 31 January 2009 were GBP41.9 million (31 January 2008: GBP
46.9 million, 31 July 2008: GBP43.1 million). The balance sheet had strengthened,
ending the half year with net assets up by GBP1.3 million to GBP81.5 million on the
start of the year, reflecting the trading results for the first 6 months of the
year.
The Group achieved realisations, from the full and partial disposal of two
investments of GBP11.1 million, which generated cash realisations of GBP3.3 million
(sale of Thiakis stake), a further GBP6.0 million in net fair value uplift on the
deferred contingent consideration and a reduction of revenue sharing
liabilities of GBP1.8 million (sale of partial holding in Ceres Power Holdings
plc). These movements are reflected in note 2 of the interim financial
statements. Investments made in portfolio companies were GBP2.8 million
(31 January 2008: GBP3.1 million, 31 July 2008: GBP6.4 million) although since the
end of January further investments have been made bringing the total invested
this financial year to GBP8.3 million (invested in 17 companies).
The cost base of the organisation has been reduced by GBP0.8 million per annum to
further strengthen its position. The cash flow impact of these reductions,
after accounting for the redundancy and other costs, resulted in a charge in
the first six months' figures of GBP0.3 million with the financial benefit from
this being seen at the end of the financial year.
INVESTMENT PORTFOLIO PERFORMANCE
During the half year, the Group made GBP2.8 million investments to fund 12
technology companies in its portfolio and at the end of the half year had
outstanding commitments to make further investments of GBP3 million. The early
stage of many of the technology companies is such that investments are made on
a milestone tranched basis, which matches their need for cash with the delivery
of milestones, whilst providing the certainty of investment to ensure their
security. Some investments are made as convertible loans and at the half year
end these had a carrying value of GBP5 million. Since 31 January 2009, the Group
has invested a further GBP5.5 million which brings the total invested in this
financial year to GBP8.3 million.
The Group reported a net profit arising from the portfolio fair value
adjustments of GBP2.0 million (H1 2008: loss GBP0.5 million, FY 2008: loss GBP
3.0 million). An analysis of the changes in fair value is given below:
Portfolio movements excluding Note1 Six months Six months 12 months to
cash invested and divestments; to to
31 July 2008
31 January 31 January
2009 2008
GBP`000 GBP`000 GBP`000
Gains on revaluation of 2 6,469 3,852 3,970
investments 2
Losses on the revaluation of 2 (7,700) (7,254) (11,084)
investments
Fair value (losses) (1,231) (3,402) (7,114)
Movement in associated revenue 3 3,159 2,880 4,125
sharing obligations
Movement in current liabilities 4 67 - -
Net fair value gains / (losses) 4 1,995 (522) (2,989)
The total value of the portfolio (excluding University Challenge Seed Fund
investments which are subject to a threefold increase before funds can be
returned to the Group) reduced from GBP49.4 million to GBP39.8 million during the
half year as a result of disposals of GBP11.1 million less investment of GBP
2.8 million and fair value losses of GBP7.7 million partially offset by fair
value gains of GBP6.5 million. There was a corresponding reduction in the
provision for liabilities and charges from GBP10.9 million to GBP5.3 million
arising from the disposal of assets of GBP2.4 million and from GBP3.2 million of
fair value reductions.
At 31 January 2009, the Group had equity stakes in 90 companies (H1 2008:
77 companies, FY 2008: 89 companies).
1 Notes to the interim financial statements.
2 The gains on revaluation of investments in the period of GBP6.5 million
includes contingent consideration of GBP6.0 million on the sale of Thiakis and is
held within trade and other receivables.
The table below sets out the top 10 technology companies, by value, in the
portfolio to illustrate the spread of the investments held and their relative
carrying value. All of the carrying values listed below reflect the net fair
value of the investment being the gross value of the holding less the
attributable revenue sharing obligations associated with each investment. The
percentage of issued share capital represents the absolute percentage of the
shares held without reflecting any revenue sharing obligations.
Name of company Note Net Cash Net Net % of
Investment invested Movement Investment
carrying / in Issued
value Carrying carrying share
(Cash Value value capital
at divested) held
6 months at
31 July 6 months to 31
2008 to 31 January January
31 January 2009 2009
31 2009
January
2009
GBP'000 GBP'000 GBP'000 GBP'000
Ceres Power Holdings 4,454 - (2,049) 2,405 3.6%
plc
Circassia Holdings 7,267 - - 7,267 14.0%
Limited
EVO Electric Limited 744 1,000 - 1,744 37.6%
InforSense Limited 1,628 277 (889) 1,016 14.94%
Microsaic Limited 1,247 - - 1,247 13.0%
Nexeon Limited A 3,196 - - 3,196 38.7%
Process Systems 1,280 - - 1,280 25.8%
Enterprise Limited
Respivert Limited 1,120 - - 1,120 15.5%
Thiakis Limited 1 B 2,642 (2,856) 6,211 5,997 -
Veryan Medical C 3,217 - - 3,217 37.6%
Limited
A. On 10 February 2009, the Group invested a further GBP4.0million in Nexeon as
part of a GBP10 million funding round. The impact of this investment is to
generate a GBP4.4 million gross fair value uplift and so increase the value
of the gross investment from GBP3.4 million to GBP11.8 million (GBP11.4 million
net). The associated revenue sharing liabilities associated with the
shareholding in Nexeon will likewise increase by GBP0.2 million from GBP
0.2 million to GBP0.4 million. The net carrying value (and profit recognised
in the Income Statement) of the investment in Nexeon after accounting for
the associate revenue sharing liabilities will increase by GBP4.1 million.
B. On 18 December 2008, the Group realised its holding in Thiakis Limited.
Under the sales agreement, Imperial Innovations could receive cash
payments, net of transaction costs, of GBP22.2 million which, after
accounting for revenue sharing obligations to Imperial College, London and
other research sponsors of GBP6.1 million, would leave a net receipt of GBP16.1
million. As at 31 January 2009, the first payment of GBP3.3 million has been
received which, after revenue sharing obligations, results in a net receipt
of GBP2.9 million. The payment received to date results in a fair value
uplift to the income statement in the 6 months ended 31 January 2009 of GBP
0.2 million and the estimated fair value uplift of the contingent deferred
consideration after risk adjusting using industry standard criteria and
discounting for time at 12% per annum results in a fair value uplift to the
income statement from the contingent deferred consideration of GBP
6.0 million. At each accounting reference date the fair value of the
contingent deferred consideration will be adjusted.
1 The GBP6.0 million represents contingent deferred consideration and is
therefore held within trade and other receivables.
C. In early April 2009 the Group invested a further GBP1.2 million in Veryan
Medical maintaining the current value of the pre-existing stake and so the
resulting net carrying value is GBP4.5 million.
OPERATIONAL PERFORMANCE
The Group made a profit for the financial period of GBP1.3 million (H1 2008: loss
GBP2.2 million, FY 2008: loss GBP5.9 million). Interest receivable was GBP1.2 million
(H1 2008: GBP1.0 million, FY 2008: GBP2.3 million). The Group continues to invest
its surplus cash in a number of Banks with a focus on capital preservation
rather than interest earned.
REVENUE AND EXPENSES
Trading revenue for the six months ended 31 January 2009 of GBP2.4 million
(H1 2008: GBP2.8 million, FY 2008: GBP5.3 million) is GBP0.4m lower than that for the
six months ended 31 January 2008 as a result of the fees from Imperial College
dropping significantly as expected and as per the Technology Pipeline Agreement
signed in 2005, together with the more difficult trading conditions prevailing
in the economy as a whole.
Cost of sales, largely arising from the revenue sharing arrangements with
Imperial College, was broadly flat at GBP0.8 million (H1 2008: GBP0.8 million,
FY 2008: GBP1.5 million). Other administrative expenses of GBP3.6 million (H1 2008:
GBP3.4 million, FY 2008: GBP6.7 million) are GBP0.2million (6%) higher than that for
the six months ended 31 January 2008. This increase is primarily as a result of
the GBP0.3 million cost reduction exercise completed early in 2009.
Administrative expenses include a charge of GBP0.6 million (H1 2008: GBP
0.6 million, FY 2008: GBP1.3 million) reflecting expenditure incurred filing
patents and protecting the, as yet unexploited, intellectual property.
SHARE BASED PAYMENTS
The Group had incurred an IFRS 2 "Share Based Payment" charge in prior periods.
IFRS 2 requires the Group to value the stock options at grant date and to
charge this over the vesting period. However, as these options were fully time
vested in April 2008 there was no charge in this half year (H1 2008: GBP
2.1 million, FY 2008: GBP3.2 million).
CASH
At 31 January 2009, the Group had cash and short term liquidity investments of
GBP41.9 million (31 January 2008: GBP46.9 million, 31 July 2008: GBP43.1 million).
This represents a decrease of GBP1.2 million from the opening balance at 31 July
2008. This movement in cash is summarised below:
Six months Six months 12 months
to to to
31 January 31 January 31 July
2009 2008 2008
GBP'000 GBP'000 GBP'000
Net cash used in operating activities (2,140) (3,068) (4,840)
Net cash generated from/(used in) 933 1,130 (838)
investing activities
Purchase of short term liquidity (4,300) - (36,000)
investments
Financing activities - 29,336 29,286
Movement in period (5,507) 27,398 (12,392)
Of the net cash used in operating activities, GBP0.2 million reflected movements
in working capital arising from increased turnover at the end of the period and
settlement of liabilities brought forward at the start of the period. It is the
Group's current policy to place cash surplus to working capital requirements on
short-term deposits. The Group has no foreign currency deposits. In light of
the current macro economic climate, the Group maintains its cash reserves with
a number of highly credit rated institutions to diversify counterparty risk.
TAXATION
The Group is eligible for Substantial Shareholder Relief as it is a member of a
trading group whilst it is a subsidiary of Imperial College. However, should
the Group cease to be part of the Imperial College group of companies (i.e.
Imperial College's shareholding drops below 50%) transitional rules apply,
which are likely to preserve the exemption for a further two years. Therefore,
unless Imperial College reduces it's holding to less than 50%, it is likely
that the Group will continue to be exempt from taxation on chargeable gains
from disposals of substantial shareholdings.
During the half year there was no charge or credit relating to taxation
(H1 2008: GBP0.9 million, FY 2008: GBP0.9million). In prior periods there have been
movements arising on the adjustment of the deferred taxation provision
previously accrued as a result of the unrecognised gain in the investment in
Ceres Power Holdings plc. The value of the Group's investment in Ceres Power
Holdings plc fell in the half year and as a result the unrealised gain is less
than the brought forward management expenses and so no provision for deferred
tax needs to be held at the end of the period.
CONSOLIDATED INTERIM INCOME STATEMENT
FOR THE SIX MONTH PERIOD TO 31 JANUARY 2009
Unaudited Unaudited Audited
six months six months 12 months to
to to
31 July 2008
31 January 31 January
2009 2008
Note GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 2,396 2,781 5,336
Cost of sales (814) (786) (1,453)
Gross profit 1,582 1,995 3,883
Net change in fair value of 4 1,995 (522) (2,989)
investments held at fair value
through profit and loss
Administrative expenses:
- Other administrative expenses (3,550) (3,366) (6,698)
- Share based payments - (2,167) (3,202)
Operating profit / (loss) 27 (4,060) (9,006)
Interest receivable 1,232 962 2,293
Interest payable - (3) (11)
Profit / (loss) before taxation 1,259 (3,101) (6,724)
Taxation - 863 863
Profit / (loss) for the 1,259 (2,238) (5,861)
financial period
Basic earnings / (loss) per 5 2.18 (4.3) (10.63)
ordinary share (pence)
Diluted earnings / (loss) per 5 2.18 (4.3) (10.63)
ordinary share (pence)
The accompanying notes are an integral part of these interim financial
statements.
CONSOLIDATED INTERIM BALANCE SHEET
AS AT 31 JANUARY 2009
Unaudited Unaudited Audited
As at As at As at
31 January 31 January 31 July 2008
2009 2008
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 39 49 44
Investments 2 39,796 49,852 49,369
University Challenge Seed Fund
(UCSF):
- Investments 936 851 800
- Loans 31 758 758
Low Carbon Seed Fund (LCSF) 232 237 234
Total non-current assets 41,034 51,747 51,205
Current assets
Trade and other receivables 6 9,506 2,159 1,488
Short term liquidity 40,300 - 36,000
investments
Cash and cash equivalents 1,570 46,867 7,077
Total current assets 51,376 49,026 44,565
Total assets 92,410 100,773 95,770
Equity and liabilities
Equity attributable to equity
holders
Issued share capital 1,746 1,746 1,746
Share premium 51,748 51,798 51,748
Retained earnings 1,840 4,204 581
Share based payments 8,097 7,062 8,097
Other reserves 18,096 18,096 18,096
Total equity 81,527 82,906 80,268
Liabilities
Non-current liabilities
University Challenge Seed Fund 967 1,670 1,590
(UCSF)
Provisions for liabilities and 3 5,344 12,104 10,863
charges
Low Carbon Seed Fund (LCSF) 232 237 234
Total non-current liabilities 6,543 14,011 12,687
Current liabilities
Trade and other payables 4,340 3,856 2,815
Total liabilities 10,883 17,867 15,502
Total equity and liabilities 92,410 100,773 95,770
The accompanying notes are an integral part of these interim financial
statements.
The interim financial statements on pages 9 to 16 were approved by the Board of
Directors on 22 April 2009 and were signed on its behalf by J. Smith and S.
Searle.
J. Smith
Chief Financial and Operations Officer
Chief Executive Officer
S. Searle
CONSOLIDATED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTH PERIOD TO 31 JANUARY 2009
Unaudited Unaudited Audited
six months six months 12 months to
to to
31 July 2008
31 January 31 January
2009 2008
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Operating profit / (loss) 27 (4,060) (9,006)
Adjustments to reconcile operating
profit / (loss) to net cash flows from
operating activities
Depreciation of property, plant and 11 11 21
equipment
Fair value movement in investments (1,995) 522 2,989
Share based payments - 2,167 3,202
UCSF management fee (32) (30) (60)
Working capital adjustments:
(Increase) in trade and other (1,226) (802) (139)
receivables
Increase / (decrease) in trade and 1,075 (876) (1,847)
other payables
Net cash used in operating activities (2,140) (3,068) (4,840)
Cash flows from investing activities
Purchase of property, plant and (5) (6) (11)
equipment
Purchase of investments (2,791) (2,929) (6,149)
Proceeds from sale of investments 3,299 3,596 3,600
Revenue share paid on asset - (295) (332)
realisations
Interest paid - - (25)
Interest received 430 764 2,079
Short term liquidity investments (4,300) - (36,000)
Net cash (used in) / generated from (3,367) 1,130 (36,838)
investing activities
Cash flows from financing activities
Proceeds from share issues - 30,000 30,000
Transaction cost of issue of shares - (670) (720)
Income from UCSF fund - 6 6
Net cash generated from financing - 29,336 29,286
activities
Net (decrease) / increase in cash and (5,507) 27,398 (12,392)
cash equivalents
Cash and cash equivalents at beginning 7,077 19,469 19,469
of the period
Cash and cash equivalents at end of the 1,570 46,867 7,077
period 1
1 As at 31 January 2009, in addition to cash and cash equivalents, short term
liquidity investments (treasury deposits) held are GBP40.3m (H1 2008: GBPnil, FY
2008: GBP36m).
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Attributable to equity holders of the Group
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Share Share Retained Share Other Total
Based
Capital Premium Earnings Payments Reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 January 2008 1,746 51,798 4,204 7,062 18,096 82,906
Consolidated loss for the - - (3,623) - - (3,623)
period to 31 July 2008
Expenses of share issue - (50) - - - (50)
Share based payments - - - 1,035 - 1,035
At 31 July 2008 1,746 51,748 581 8,097 18,096 80,268
Consolidated profit for - - 1,259 - - 1,259
the period to 31 January
2009
At 31 January 2009 1,746 51,748 1,840 8,097 18,096 81,527
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
These unaudited consolidated interim financial statements have been prepared in
accordance with the AIM Rules and European Union endorsed International
Financial Reporting Standards and International Financial Reporting
Interpretation Committee Interpretations. These comprise the consolidated
interim income statement, the consolidated interim balance sheet, the
consolidated interim cash flow statement, the consolidated interim statement of
changes in equity and the related notes ("the interim financial statements").
The Group has chosen not to adopt IAS 34, "Interim Financial Reporting", in the
preparation of these interim financial statements.
These interim financial statements have been prepared on a going concern basis
under the historical cost convention, as modified by the revaluation of certain
financial assets at fair value, as required by IAS 39, "Financial instruments:
Recognition and Measurement". The accounting policies adopted are consistent
with those of the annual financial statements for the year ended 31 July 2008,
as described in those financial statements. There are no new Standards likely
to affect the financial statements for the year ending 31 July 2009.
These interim financial statements do not comprise statutory accounts within
the meaning of Section 434 of the Companies Act 2006. Statutory accounts for
the year ended 31 July 2008 were approved by the Board of Directors on 13
October 2008 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under Section 237 of the
Companies Act 1985.
2. Investments - Designated at fair value through profit or loss
Unaudited for the six months to 31 January 2008 Quoted Unquoted Total
Companies1 Companies
GBP000 GBP000 GBP000
At 1 August 2007 20,508 33,218 53,726
Gains on the revaluation of investments - 3,852 3,852
Losses on the revaluation of investments (5,199) (2,055) (7,254)
Fair value (losses) / gains (5,199) 1,797 (3,402)
Investments during the period - 3,129 3,129
Proceeds from the sale on investments (3,566) (35) (3,601)
Net (investment) / proceeds from the sale on (3,566) 3,094 (472)
investments
At 31 January 2008 11,743 38,109 49,852
For the year ended 31 July 2008 Quoted Unquoted Total
Companies1 Companies
GBP000 GBP000 GBP000
At 1 August 2007 20,508 33,218 53,726
Gains on the revaluation of investments - 3,970 3,970
Losses on the revaluation of investments (7,262) (3,822) (11,084)
Fair value (losses) / gains (7,262) 148 (7,114)
Investments during the period - 6,357 6,357
Proceeds from the sale on investments (3,557) (43) (3,600)
Net (investment) / proceeds from the sale on (3,557) 6,314 2,757
investments
At 31 July 2008 9,689 39,680 49,369
Unaudited for the six months to 31 January 2009 Quoted Unquoted Total
Companies1 Companies
GBP000 GBP000 GBP000
At 1 August 2008 9,689 39,680 49,369
Gains on the revaluation of investments - 6,469 6,469
Losses on the revaluation of investments (4,588) (3,112) (7,700)
Fair value (losses) / gains (4,588) 3,357 (1,231)
Investments during the period - 2,798 2,798
Proceeds from the sale on investments (1,846) (9,294) (11,140)
Net (investment) (1,846) (6,496) (8,342)
At 31 January 2009 3,255 36,541 39,796
1 All quoted companies are listed on AIM.
During the half year ended 31 January 2008, the Group disposed of Ceres Power
Holdings plc shares and those shares were not subject to payment of associated
revenue share to Imperial College pursuant to the Technology Pipeline Agreement
("TPA") but were subject to an agreement whereby the Group increased the
revenue sharing percentage in respect of the remaining Ceres Power Holdings plc
shares held by the Group to cover 1,791,771 shares.
As at 31 January 2008 and 31 July 2008 the value of the 1,791,771 shares in
Ceres Power Holdings plc remained as an investment on the balance sheet and
there was a corresponding liability in the `Provision for liabilities and
charges' covering these shares. Consequently, as the value of the Ceres Power
Holdings plc shares fluctuates, although the gross values of the investment and
liability also fluctuated there was no net impact on the Group's net assets or
reserves. In January 2009, Imperial College called for a transfer pursuant to
the TPA of the 1,791,771 Ceres Power Holdings plc shares and subsequently the
Group transferred the shares to Imperial College. The impact of the transfer is
therefore reflected as a disposal of GBP1.8 million in the Group's holding in
Ceres Power Holdings Group plc and a corresponding reduction arising from the
disposal in the `provision for liabilities and charges' as set out more fully
in Note 3. There is therefore no impact to the `change in fair value of
investments' in the income statement and no cash impact.
On 18 December 2008, the Group realised its holding in Thiakis Limited. Under
the sales agreement, Imperial Innovations could receive cash payments, net of
transaction costs, of GBP22.2 million which, after accounting for revenue sharing
obligations to Imperial College, London and other research sponsors of GBP
6.1 million, would leave a net receipt of GBP16.1 million. As at 31 January 2009,
the first payment of GBP3.3 million has been received which, after revenue
sharing obligations, results in a net receipt of GBP2.9 million. The payment
received to date results in a fair value uplift to the income statement in the
6 months ended 31 January 2009 of GBP0.2 million. The estimated fair value uplift
of the contingent deferred consideration after risk adjusting using industry
standard criteria and discounting for time at 12% per annum results in a fair
value uplift to the income statement from the contingent deferred consideration
of GBP6.0 million. At each accounting reference date the fair value of the
contingent deferred consideration will be adjusted to reflect the probability
of completion of the milestones. As the future payments are a contractual
entitlement, rather than an equity investment, they are reflected in the
balance sheet under trade and other receivables.
3. Provisions for liabilities and charges
Unaudited for the six months to 31 January 2008 Quoted Unquoted Total
Companies Companies
GBP000 GBP000 GBP000
At 1 August 2007 8,425 6,757 15,182
Increase of liability arising from gains on the - 40 40
revaluation of investments
Decrease of liability arising from losses on the (2,358) (562) (2,920)
revaluation of investments
Changes in fair value during the period (2,358) (522) (2,880)
Realisations during the period (198) - (198)
At 31 January 2008 5,869 6,235 12,104
For the year ended 31 July 2008 Quoted Unquoted Total
Companies
Companies
GBP000 GBP000 GBP000
At 1 August 2007 8,425 6,757 15,182
Increase of liability arising from gains on the - 55 55
revaluation of investments
Decrease of liability arising from losses on the (3,389) (791) (4,180)
revaluation of investments
Changes in fair value during the period (3,389) (736) (4,125)
Realisations during the period (194) - (194)
At 31 July 2008 4,842 6,021 10,863
Unaudited for the six months to 31 January 2009 Quoted Unquoted Total
Companies
Companies
GBP000 GBP000 GBP000
At 1 August 2008 4,842 6,021 10,863
Decrease of liability arising from gains on the - (185) (185)
revaluation/disposal of investments
Decrease of liability arising from losses on the (2,433) (541) (2,974)
revaluation of investments
Changes in fair value during the period (2,433) (726) (3,159)
Provisions utilised in the period (69) - (69)
Realisations during the period (1,846) (445) (2,291)
At 31 January 2009 494 4,850 5,344
NOTES TO THE INTERIM FINANCIAL STATEMENTS continued
Provisions for liabilities and charges is made up of the revenue sharing
provision which represents a fair value estimate of monies due to Imperial
College and other third parties such as co-funders of research work and the
Appointee Directors' Pool. The provision will be payable upon the eventual
realisation of investments held by the Group under the revenue sharing
arrangements of the Technology Pipeline Agreement (TPA) and in recognition of
Imperial College London's right to call for a transfer of its share of the
Group's holding in investments. The timing and amount of the realisation of the
provision is dependent on the timing of the disposal of investments, which is
uncertain as this is determined by the investment strategy.
4. Net change in fair value of investments held at fair value through profit or
loss
Unaudited for the six months to 31 January 2008 Quoted Unquoted Total
Companies Companies
GBP000 GBP000 GBP000
At 1 August 2007 12,083 26,461 38,544
Gains on the revaluation of investments - 3,812 3,812
Losses on the revaluation of investments (2,841) (1,493) (4,334)
Fair value (losses) / gains (2,841) 2,319 (522)
Investments during the period - 3,129 3,129
Proceeds from the sale on investments (3,368) (35) (3,403)
Net (investment) / proceeds from the sale of (3,368) 3,094 (274)
investments
At 31 January 2008 5,874 31,874 37,748
For the year ended 31 July 2008 Quoted Unquoted Total
Companies Companies
GBP000 GBP000 GBP000
At 1 August 2007 12,083 26,461 38,544
Gains on the revaluation of investments - 3,915 3,915
Losses on the revaluation of investments (3,873) (3,031) (6,904)
Fair value (losses) / gains (3,873) 884 (2,989)
Investments during the period - 6,357 6,357
Proceeds from the sale on investments (3,363) (43) (3,406)
Net (investment) / proceeds from the sale of (3,363) 6,314 2,951
investments
At 31 July 2008 4,847 33,659 38,506
Unaudited for the six months to 31 January 2009 Quoted Unquoted Total
Companies Companies
GBP000 GBP000 GBP000
At 1 August 2008 4,847 33,659 38,506
Gains on the revaluation/disposal of investments - 6,654 6,654
Losses on the revaluation of investments (2,155) (2,571) (4,726)
Fair value (losses) / gains (2,155) 4,083 1,928
Investments during the period - 2,798 2,798
Provisions utilised in the period 69 - 69
Proceeds from the sale on investments - (8,849) (8,849)
Net proceeds from the sale of investment / 69 (6,051) (5,982)
(investment)
At 31 January 2009 2,761 31,691 34,452
The tables set out in Note 4 setting out the net change in fair value of
investments held at fair value through profit or loss represent a combination
of Note 2 and Note 3 to analyse the value of the investments after all
associated revenue sharing liabilities have been accounted for.
Movement in Current Liabilities Total
GBP000
Changes in fair value realised during the period 67
Net change in fair value of investments for the period of GBP1,995,000 as set out
on the face of the Income Statement represents the change in net fair value on
net assets of GBP1,928,000 plus GBP67,000 to reflect final adjustments on current
liabilities on realisations before revenue share with third parties.
5. EARNINGS / (LOSS) PER SHARE
Basic earnings / (loss) per share is calculated by dividing the profit / (loss)
for the period by the weighted average number of Ordinary Shares in issue
during the period.
The profits / (losses) and weighted average number of shares used in the
calculations are set out below:
Unaudited Unaudited Audited
Six months Six months 12 months
to to to
31 January 31 January 31 July
2009 2008 2008
Earnings / (losses) per Ordinary Share
Profit / (loss) for the financial period (GBP 1,259 (2,238) (5,861)
000)
Weighted average number of Ordinary Shares 57,630 52,630 55,130
(basic) (thousands)
Effect of dilutive potential Ordinary 166 - -
Shares1
Weighted average number of Ordinary Shares 57,796 52,630 -
for the purposes of diluted earnings /
(losses) per share (thousands)
Earnings / (loss) per ordinary share basic 2.18 (4.3) (10.63)
(pence)
Earnings / (loss) per ordinary share 2.18 (4.3) (10.63)
diluted (pence)
1 Share options are non-dilutive for the six months to 31 January 2008 and 31
July 2008 because of the loss.
6. TRADE AND OTHER RECEIVABLES
The balance includes the contingent deferred consideration on the sale of
Thiakis of GBP6.0m.
7. POST BALANCE SHEET EVENTS
Since the period end of 31 January 2009, until and as at 20 April 2009, the
last practical date prior to the approval of the interim financial statements,
the value of the Group's largest publicly quoted investment, Ceres Power
Holdings plc, had increased by GBP0.3 million (10.77%). This has had the effect
of increasing investments by GBP0.3 million and of increasing the provision for
liabilities and charges by GBP13,000 since the half year end.
On 10 February 2009, the Group invested a further GBP4.0 million in Nexeon as
part of a GBP10 million funding round. The impact of this investment is to
increase the value of the gross investment from GBP3.4 million to GBP11.8 million.
The associated revenue sharing liabilities associated with the shareholding in
Nexeon will likewise increase by GBP0.2 million from GBP0.2 million to GBP
0.4 million. The net carrying value (and profit recognised in the Income
Statement) of the investment in Nexeon after accounting for the associate
revenue sharing liabilities will increase by GBP4.1 million.
In early April 2009 the Group invested a further GBP1.2 million in Veryan Medical
maintaining the current value of the pre-existing stake and so the resulting
net carrying value is GBP4.5 million.
Independent review report to Imperial Innovations Group plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
January 2009, which comprises the consolidated interim income statement,
consolidated interim balance sheet, consolidated interim cash flow statement,
consolidated interim statement of changes in equity and related notes. We have
read the other information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the AIM Rules for Companies
which require that the financial information must be presented and prepared in
a form consistent with that which will be adopted in the company's annual
financial statements.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with the basis of preparation set out in
note 1.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the AIM Rules for Companies and for no other
purpose. We do not, in producing this report, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent
in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, `Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 January 2009 is not prepared, in
all material respects, in accordance with the basis of preparation set out in
note 1 and the AIM Rules for Companies.
PricewaterhouseCoopers LLP
Chartered Accountants
24 April 2009
Cambridge
Notes:
The maintenance and integrity of the Imperial Innovations Group plc website is
the responsibility of the directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the
financial statements since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
Company Information
Directors
M Knight (Chairman)
S Searle (Chief Executive Officer)
J Smith (Chief Financial & Operations Officer)
R (Chief Investment Officer)
Cummings
D Allen (Non-Executive Director) appointed 1
August 2008
P (Non-Executive Director)
Atherton
M Rowan (Non-Executive Director)
Company Secretary
J Bowen
Registered Office
Level 12, Electrical and Electronic Engineering
Building
Imperial College
London SW7 2AZ
Auditors
PricewaterhouseCoopers LLP
Abacus House
Castle Park
Cambridge CB3 0AN
Principal Bankers
National Westminster Bank plc
P O Box No 592
18 Cromwell Place
London SW7 2LB
Solicitors
Mayer Brown International LLP
201 Bishopsgate
London EC2M 3AF
Financial Advisers and Nomad
JPMorgan Cazenove Limited
20 Moorgate
London EC2R 6DA
Share Registrars
Equiniti Limited
Aspect House
Spencer Road
Lancing
Worthing
West Sussex BN99 6DA
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