TIDMABC
RNS Number : 6674Y
ABCAM Plc
08 September 2009
?
+--------------------------------------------+--------------------------------------------+
| For immediate release | 8 September 2009 |
+--------------------------------------------+--------------------------------------------+
ABCAM PLC
('Abcam' or 'the Company')
Preliminary results for the year ended 30 June 2009
Cambridge, UK: Abcam plc (AIM: ABC), the rapidly growing bioscience company that
markets antibodies via its own online catalogue, is pleased to announce its
preliminary results for the year ended 30 June 2009.
Highlights
* Revenue increased by 55.2% to GBP56.8m (2008: GBP36.6m) and by 27.8% on a
constant currency basis
* Pre-tax profits increased by 118.5% to GBP17.4m (before a non-recurring fixed
asset impairment related charge of GBP1.1m in 2009)
* Product range grew by 19.1% to approximately 52,400 antibodies and related
products (2008: 44,000)
* Office moves in the UK and Japan to accommodate further growth were completed
* The North American and Japanese offices continued to trade well and deliver
significant growth
* Monoclonal manufacturing resource refocused on the development and production of
a narrower range of high selling monoclonal antibodies
* Net cash and short-term investments at 30 June 2009 of GBP25.5m (2008: GBP14.5m)
* EPS increased by 106.3% to 34.83p per share (2008: 16.88p)
* Recommended final dividend increased by 106.1% to 9.40p per share (2008: 4.56p),
giving total increase in dividend for the year of 116.2% to 12.11p (2008: 5.60p)
David Cleevely, Chairman of Abcam, said:
"We are presenting our results for the 2009 financial year against a backdrop of
one of the most challenging global economic environments for many years. It
therefore gives me particular pleasure to be reporting on an outstanding
performance and the excellent progress made during the year.
"The potential impact of the global recession on our business is difficult to
assess but trading has begun well in the new financial year, reflecting the
robust and defensive nature of our markets."
For further information please contact:
Abcam+44 (0) 1223 696000
Jonathan Milner, Chief Executive Officer
Jeff Iliffe, Chief Financial Officer
www.abcamplc.com
Numis Securities+44 (0) 20 7260 1000
Nominated Adviser Michael Meade / Nick Westlake
Corporate Broking James Black
Buchanan Communications+44 (0) 20 7466 5000
Mark Court / Mary-Jane Johnson / Stasa Filiplic
Notes for editors
About Abcam plc
Abcam is a producer and distributor of research-grade antibodies headquartered
in Cambridge, United Kingdom, with offices in Cambridge, Massachusetts, USA and
Tokyo, Japan. Abcam was admitted to AIM in November 2005 and trades under the
ticker symbol ABC. The Company produces and distributes its own and third-party
produced antibodies to academic and commercial users throughout the world.
Product ordering is available through the Company's website www.abcam.com, where
customers are also able to access up-to-date and detailed technical product data
sheets. All the antibodies are sold under the Abcam brand name and the Company's
vision is to build the world's largest online resource of high-quality and
commercially viable antibodies. Abcam now has an online catalogue of over 52,000
products, most of which are antibodies, from over 250 suppliers and employs 237
staff in its three operating companies.
About antibodies
Antibodies are proteins produced by white blood cells in response to the
introduction of a foreign body known as an antigen. Antibodies, which have a
wide variety of uses in research, diagnostics and therapeutics, are used by
bioscientists in research into disease and into the human genome, where they are
used to mark and identify specific cells and other living matter. The number of
human antibodies of use in research is potentially greater than one million.
Chairman's Review
We are presenting our results for the 2009 financial year against a backdrop of
one of the most challenging global economic environments for many years. It
therefore gives me particular pleasure to be reporting on an outstanding
performance and the excellent progress made during the year.
Abcam was established eleven years ago to meet the needs of the research
scientist for reliable, validated antibodies for protein detection, a central
function of life science research. Since then we have been dedicated to
assisting global research through investment in the extension of our product
catalogue and increased and improved validation of our products across an
expanded range of applications. Throughout that time, the central tenets of our
business have been to build an infrastructure such that our expansion is
controlled and sustainable, and, critically, to stay in close communication with
our customer base so that we can better serve them and anticipate their future
requirements.
We are proud to have built a global business that is characterised by a rapidly
increasing demand for its products, and a strong customer base, located across
the world. We have fulfilled over half a million orders since our foundation and
have a huge and growing volume of information on our antibodies. This
information, much of which is available on our website, is provided from our own
in-house facility, from our customers and suppliers, and via articles (which are
now running at over 2,000 per quarter) in independent scientific publications.
Our strong customer focus extends into the continued development of our
e-commerce platform, which provides easy access to detailed information relating
to our products, and extensive follow-up technical support, all aimed at
improving the experience of, and assisting, the researcher.
Sales in the year increased by 55.2% to GBP56.8m and we benefited significantly
from the weakness of Sterling, which had a positive impact on reported sales.
Within that figure, underlying sales growth at constant currency rates was still
very strong at 27.8% and we made significant progress in each of our main
markets.
Our aim is to deliver sustainable growth through continued investment in the
business. This year we have continued to develop the website, to optimise the
user experience and, as part of our continued focus on being close to the
markets and our customers, we now have our own in-house customer survey
capability, which will play an important role in guiding new developments.
Our North American and Japanese offices have both had excellent years and grown
significantly. Asia represents an opportunity for us which is as yet relatively
untapped. We are therefore in the process of opening a sales and marketing
office in Hong Kong to serve the local market and mainland China. As with the
opening of our Japanese office in 2006, this will initially be on a small scale,
as we look to develop our market penetration and provide improved customer
service levels. Elsewhere, our distributor network has been further enhanced
with the addition of three new distributors and we now have coverage over
several countries in South America.
As indicated in the announcement accompanying our interim results in March, we
have taken steps to refocus our monoclonal manufacturing resource towards more
targeted production of a narrower range of high selling monoclonal antibodies,
which we will supplement with the selective sourcing of monoclonal antibodies
from third parties. Our aim is to leverage our excellent market position and
knowledge to focus on areas of high demand, as we currently do with our
polyclonal production. As a consequence, we are taking an impairment charge of
GBP1.1m in the year, relating to assets which are no longer utilised as a result
of the decision to refocus strategy away from the higher-volume production
processes.
Our customers are the lifeblood of our business and are central to its
operation. I would like to extend thanks to them for their continued support, to
our suppliers who serve us so well, and to our shareholders.
Growth at the levels we are reporting requires dedicated and capable staff and I
am delighted to say that we have continued to attract people of the highest
calibre at all levels across the business. We thank them for their continued
commitment, creativity and attention to detail which makes our success possible.
Dividends
The Board's policy for the past two years has been to distribute 33% of post-tax
earnings. In light of the continued strong cash flow and success of the Group,
the Directors are recommending that the distribution ratio for this year be
increased to 35%. An interim dividend of 2.71p per share was paid in April 2009
and the Directors are therefore recommending a final dividend of 9.40p per
share, making a total of 12.11p for the year, an increase of 116.2% on that paid
last year. Subject to shareholder approval at the Annual General Meeting ('AGM')
in November, the final dividend will be paid on 27 November 2009 to shareholders
on the register on 6 November 2009.
Outlook
The potential impact of the global recession on our business is difficult to
assess but trading has begun well in the new financial year. The robust and
defensive nature of our markets, particularly from centrally funded research,
has been well demonstrated during the past year. Nevertheless, the current
economic circumstances demand a degree of caution.
Since the Company was founded our philosophy has been market led, focusing on
the provision of the best quality products in the most relevant and meaningful
way for the research scientist. This requires an integrated approach, across all
areas of the business, and guides all that we do. Our track record demonstrates
the strength of this philosophy, which I am sure will continue to serve the
Company well in the future.
I was particularly pleased to welcome Mike Redmond to the Board as Deputy
Chairman earlier in the year. As I indicated in the announcement of his
appointment, after eleven years it is my intention to step down from the Board
and I will be doing so at the AGM in early November. I am very proud of our
achievements, the strength of the Company which has been built and the quality
of the staff we have been able to attract. I am sure that under Mike Redmond's
guidance and leadership as Chairman, Abcam will continue to thrive.
Dr David Cleevely FREng
Chairman
7 September 2009
Chief Executive Officer's Review
It gives me a huge amount of pleasure to report on another very successful year
for Abcam. With sales growth of 55.2% to GBP56.8m (27.8% on a constant currency
basis), we continue to validate the strength of our business model and gain
market share. Our high quality, highly specified antibodies and breadth of
catalogue continue to attract new customers and the high levels of service and
support we provide ensure strong levels of customer retention.
It is important that we continue to invest in the business whilst delivering
profitable growth and as described below, we have done so again this year.
Profit before tax increased by 118.5% from GBP8.0m to GBP17.4m (before a GBP1.1m
charge associated with the restructuring at the production facility in the 2009
financial year).
Sales in North America grew by 23.6% to $41.8m (GBP26.2m) as we continued to
gain market share in the biggest, most mature and competitive market in the
world. We are extending our opening times in order to improve service levels on
the West Coast and continue to target regions where we have lower market
penetration.
Our virtual office approach to European markets and targeted marketing
initiatives, based out of our Cambridge UK office, but enabling European
customers to contact us directly in their own languages, has continued to be
successful and sales to Europe grew by 27.7% to EUR18.9m (GBP16.3m).
In Japan, the transition away from using our original distributor to dealing
exclusively with sub-dealers was completed during the year. This has been a
major exercise and means that we are now able to be closer to the customer,
which is a key part of our strategy and enables us to trade at improved margins.
Sales in Japan grew by 52.4% to JPY704m (GBP4.6m).
We enjoyed strong growth in the UK as sales grew by 17.7% to GBP4.9m and, with
the expansion of our distributor network, sales in the rest of the world grew by
51.0%.
Included in the rest of the world figure are sales in the Hong Kong and Chinese
markets, which together accounted for 3.0% of our sales this year. We believe
that we are under-represented in those markets and consequently are in the
process of opening a small sales and marketing office in Hong Kong to help
capitalise on this opportunity.
We have increased the number of products in the catalogue by 19.1% during the
year to approximately 52,400, further extending our product range. New products
added during the year contributed GBP2.7m of sales. As information is gathered
on these products we expect sales to increase over time, as is the case with
other products in the catalogue.
As our market reach grows we continue to attract new suppliers of quality
products in what is still a relatively fragmented market. In addition, we enjoy
the benefit of the product development activities of existing suppliers with
whom we have more established relationships, and who continue to introduce new
products to us. We are also looking to expand the breadth of antibody-related
reagents we offer, further to which we made an investment during the year to
enable us to ship products on dry ice. This now gives us the capability to
extend our range to products which, unlike antibodies, must remain frozen during
delivery.
We have completed the restructuring of our production facility following the
switch to more targeted monoclonal production. The decision to do this was taken
because in the view of the Board the development of the high-volume monoclonal
production process had the potential to absorb significant financial and
management resources for an uncertain outcome. We will now look to supplement
supply on a selective basis from third parties to ensure we have access to
high-quality monoclonal antibodies in order to meet market demand. Following the
reorganisation, our polyclonal production activities have benefited from the
additional development resources made available and are producing at record
volumes.
Having identified that a key driver of our growth is the amount of
characterisation data available to scientists on the products in our catalogue,
I am particularly pleased with the improvement both in throughput and breadth of
applications that the characterisation team in our production facility can
cover. There has been a significant increase in the amount of information added
in the year and we have supplemented this for the first time by bringing a third
party into our characterisation programme to help increase the volume and
breadth of tests undertaken.
A cornerstone of Abcam's development has been building and retaining a close
relationship with our customers. We do this in part by categorising the research
market using our Core Focus Areas, which target researchers at the most exciting
and cutting-edge frontiers of science. As part of this strategy we also continue
to run world-class conferences where ground-breaking discoveries are announced,
often with Abcam products as the enabling technology in those discoveries. We
organised 17 conferences in the year, including our first in Asia. The recent
establishment of our own in-house customer research capability means we are able
to build ever closer relationships with the scientific community.
This year has seen an increase in resources applied to our newly formed
dedicated e-commerce team, a particular focus of which has been improved and
targeted e-mail marketing. We have also improved response times on the website
and are attracting traffic to the site at increasing rates.
We look to build our business in a way which is scalable, to accommodate future
growth. It is important that as we do this we continue to focus on economies of
scale in order to optimise the return from our activities, hence our end-to-end
internal system development, which links the public website to our key operating
systems. This year we completed a major move of our head office to a new site on
the Cambridge Science Park, and also moved offices in Japan following the change
in distribution channels. Both moves were undertaken to accommodate further
growth and were completed on time, with minimal disruption.
As previously announced, David Cleevely will be stepping down from the Board
later this year. David was instrumental in the founding of Abcam in 1998 and I
would like to express my thanks to David for all he has done for the Company
over that time and the support he has provided to me personally. He has made a
huge contribution and without him Abcam would not be the great Company it is
today, and perhaps would not have existed at all. We wish him well and are very
much looking forward to working with Mike Redmond, who will be replacing David
as Chairman.
Abcam has a proven business model, dedicated staff, continuing strong underlying
growth and significant potential. We have created a brand that is trusted by our
customers through our focus on antibodies, on product quality and on customer
service. We intend to continue to grow the number of antibodies in our catalogue
and will consider adding related products to assist researchers in their quest
to uncover the secrets of the cell. These are exciting times for Abcam, which is
at the forefront of enabling life science research.
Jonathan Milner
Chief Executive Officer
7 September 2009
Financial Review
Revenue
Revenue increased in the year by 55.2% to GBP56.8m, or 27.8% on a constant
currency basis (i.e. if foreign currency exchange rates had remained unchanged
from 2008). The weighted average exchange rates applied to sales in the year
were GBP1 : $1.595, EUR1.160, JPY151.880 (2008: GBP1 : $1.993, EUR1.355,
JPY218.246.)
Gross margin
Gross margins reported for the period under review were 65.8%, compared with
60.7% for the previous year. The weakness of Sterling has contributed to this
rise through an increase in Sterling-translated average unit selling prices.
Whilst a relatively high percentage of the cost of sale is US Dollar
denominated, the increase in Sterling-translated cost arising from the impact of
exchange rate movements during the year has been mitigated by the impact of
sales of products acquired when the Sterling exchange rate was stronger.
On a constant currency basis, gross margins increased by 2.1% through increases
in underlying average selling prices, the effective management of costs and
improvement in the margins for products sold under Product Line Acquisition
agreements.
Administration and management expenses
Administration and management expenses rose from GBP12.4m to GBP17.4m in the
year, before a non-recurring impairment charge of GBP1.1m, which is discussed
further below. The main increases relate to:
* a 29% increase in average headcount, in particular to increase staff resources
in the Company's IT and customer support areas and in pursuit of the Company's
Core Focus Area strategies;
* an increase in profit-related pay to employees, following the substantial
increase in profit during the year;
* an increase in costs associated with the remaking of previously developed
products to meet additional and expected demand;
* additional costs arising from the new leases for the larger premises now
occupied in Cambridge, UK and Japan, together with the costs of those office
moves; and
* costs arising from the commencement of an initiative involving the use of a
third party to accelerate the rate of addition of characterisation information
on products in the catalogue.
The bad debt provision decreased in the year from GBP0.59m to GBP0.31m.
Previously provided net debts of GBP0.24m were written off against the
provision, GBP0.04m was charged to reserves to reflect movements in exchange
rates, and GBP0.08m was credited back to profit and loss, since a lower
provision was required following the success in cash collection during the year.
Impairment of tangible assets
An impairment charge of GBP1.1m was taken during the year relating to fixed
assets associated with the high-volume production processes which will not now
be used in the business.
Research and development expenditure
Research and development ('R&D') expenditure relates to the development of new
polyclonal and monoclonal products. R&D expenditure increased by 27.3% to
GBP3.1m, reflecting the increased investment in these areas. Whilst the level of
expenditure will not increase at the rate previously planned, following the move
away from high throughput monoclonal development, it will rise in line with the
introduction of new own manufactured polyclonal antibodies and as the new
strategy for monoclonal antibody development is pursued.
Profit
After adding back the impairment charge of GBP1.1m in the 2009 financial year
referred to above and the ongoing share based payments charge, operating profit
expressed as a percentage of sales was 30.7% (2008: 20.7%), despite the impact
of the additional administrative and R&D costs outlined above.
Investment revenue fell in the year, despite strong cash generation, reflecting
the much reduced returns in the market on cash deposits.
Tax
The consolidated tax charge for the year was GBP4.0m or 24.6% of profit before
tax, reflecting the tax credits arising from the increased amount of R&D
undertaken and the increase in the R&D tax benefit from 50% to 75% of
expenditure since August 2008.
Inventories
The Group has strong inventory management systems which operate at the
individual product level and are aimed at maintaining high stock availability
for customers whilst minimising the levels of stock held to achieve this. As a
result, stock levels have increased slightly less than the growth in sales
during the course of the year. Over time, the Company expects the levels of
stock to increase relative to sales, since Abcam products developed in house may
involve batch sizes larger than are required for immediate sale, and as more
stock is built up overseas to enable higher levels of service in local markets.
Debtors
The strong debtor control processes introduced last year have continued to
operate effectively and debtor days at the year end were 32.0 (2008: 34.4). The
majority of sales continue to be on credit and we would expect some increase in
debtor days over time, in line with practice in local markets, as the geographic
spread of sales widens.
Creditors
Current liabilities rose from GBP4.7m to GBP8.6m. This figure includes deferred
income of GBP1.3m (2008: GBP0.1m), including GBP1.0m of the cash incentive of
GBP1.1m received on entering into a new lease for the head office (2008:
GBPnil), which is to be credited to profit and loss over the life of the lease.
Excluding this deferred income, trade and other payables increased by 33.1%
which is slightly less than the rate of increase in overall costs. Current tax
liabilities increased to GBP1.9m (2008: GBP0.4m), reflecting the increase in
taxable profit during the year.
Cash flow
The Group's cash flow continues to be strong, with cash generated from operating
activities of GBP14.8m (2008: GBP7.1m), including the receipt of GBP1.1m in cash
referred to above, which is included in deferred income (2008: GBPnil).
Consequently, despite spending GBP1.8m on property, plant and equipment and
GBP0.3m on acquiring computer software and distribution rights, the Group's cash
and short-term investment balances increased during the year by GBP11.0m.
Accounting Standards
This year is the first following the adoption of IFRIC 13 Customer Loyalty
Programmes, which applies to the Abpoints scheme operated by the Company. This
has resulted in a reduction in revenue and administration and management
expenses of GBP96,000 in the year ended 30 June 2008. The effect on the
comparative balance sheet was to increase trade and other payables by GBP96,000,
with a corresponding decrease in provisions. There is no overall impact on
results or net assets.
EPS
The number of shares issued during the year for the exercise of share options
and for shares issued into the employee benefit trust, was relatively small at
458,669 (2008: 443,397), meaning that as post-tax profit grew by 108.7% (2008:
45.0%) the growth in basic EPS was 106.3% (2008: 43.8%) and in diluted EPS was
106.3% (2008: 44.9%).
Currency exposure
The Group continues to generate significant amounts of US Dollars, Euros and
Japanese Yen in excess of payments in these currencies, and has arrangements in
place to reduce the exposure to currency fluctuations. During the year to 30
June 2009 the Group had forward exchange contracts which matured to sell $14.1m
and EUR11.4m at average rates of GBP1 to $1.760 and GBP1 to EUR1.246 respectively.
For the year ending 30 June 2010 the Group has forward exchange contracts in
place to sell $15.9m, EUR14.2m and JPY300.0m at average rates of GBP1 to $1.496,
EUR1.138 and JPY157.09, of which $1.5m and EUR1.5m were marked to market rates at 30
June 2009, the balance being treated as hedged contracts. The Group also has
contracts in place maturing in the year ending 30 June 2011 of $4.2m, EUR4.2m and
JPY75.0m at average rates of GBP1 : $1.510, EUR1.138 and JPY156.30 respectively.
Jeff Iliffe
Chief Financial Officer
7 September 2009
Consolidated Income Statement
For the year ended 30 June 2009
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | Year |
| | | | ended |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | Year | 30/06/08 |
| | | ended | |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | 30/06/09 | restated* |
+-------------------------------------------------------------------+----------+----------+-----------+
| | Notes | GBP000 | GBP000 |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Continuing operations | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Revenue | 6 | 56,801 | 36,598 |
+-------------------------------------------------------------------+----------+----------+-----------+
| Cost of sales | | (19,420) | (14,389) |
+-------------------------------------------------------------------+----------+----------+-----------+
| Gross profit | | 37,381 | 22,209 |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Administration and management expenses excluding share based | | | |
| compensation charge | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| and impairment of property, plant and equipment | | (16,985) | (12,248) |
+-------------------------------------------------------------------+----------+----------+-----------+
| Share based compensation charge | 31 | (374) | (173) |
+-------------------------------------------------------------------+----------+----------+-----------+
| Impairment of property, plant and equipment | 18 | (1,074) | - |
+-------------------------------------------------------------------+----------+----------+-----------+
| Total administration and management expenses | | (18,433) | (12,421) |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Research and development expenses excluding share based | | (2,986) | (2,398) |
| compensation charge | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Share based compensation charge | 31 | (90) | (19) |
+-------------------------------------------------------------------+----------+----------+-----------+
| Total research and development expenses | | (3,076) | (2,417) |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Operating profit | | 15,872 | 7,371 |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Investment revenue | 11 | 431 | 581 |
+-------------------------------------------------------------------+----------+----------+-----------+
| Profit before tax | | 16,303 | 7,952 |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Tax | 14 | (4,012) | (2,062) |
+-------------------------------------------------------------------+----------+----------+-----------+
| Profit for the year attributable to shareholders | 8, 29 | 12,291 | 5,890 |
+-------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Earnings per share from continuing operations | | | |
+-------------------------------------------------------------------+----------+----------+-----------+
| Basic | 16 | 34.83p | 16.88p |
+-------------------------------------------------------------------+----------+----------+-----------+
| Diluted | 16 | 34.17p | 16.56p |
+-------------------------------------------------------------------+----------+----------+-----------+
* restated to reflect the adoption of IFRIC 13 as per note 2.
Consolidated Statement of Recognised Income and Expense
For the year ended 30 June 2009
+------------------------------------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
+------------------------------------------------------------------------+----------+----------+
| | 30/06/09 | 30/06/08 |
+------------------------------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+------------------------------------------------------------------------+----------+----------+
| Gains/(losses) on cash flow hedges | 1,296 | (168) |
+------------------------------------------------------------------------+----------+----------+
| Exchange differences on translation of foreign operations | 245 | 3 |
+------------------------------------------------------------------------+----------+----------+
| Tax on items taken directly to equity | 247 | 502 |
+------------------------------------------------------------------------+----------+----------+
| Net income recognised directly in equity | 1,788 | 337 |
+------------------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------------------+----------+----------+
| Profit for the year | 12,291 | 5,890 |
+------------------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------------------+----------+----------+
| Total recognised income and expense for the year | 14,079 | 6,227 |
+------------------------------------------------------------------------+----------+----------+
Consolidated Balance Sheet
At 30 June 2009
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | 30/06/08 |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | 30/06/09 | restated* |
+---------------------------------------------------------------------+-------+----------+-----------+
| |Notes | GBP000 | GBP000 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Non-current assets | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Intangible assets | 17 | 793 | 994 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Property, plant and equipment | 18 | 3,541 | 4,204 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Deferred tax asset | 23 | 335 | - |
+---------------------------------------------------------------------+-------+----------+-----------+
| Derivative financial instruments | 22 | 326 | - |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | 4,995 | 5,198 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Current assets | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Inventories | 20 | 6,796 | 4,506 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Trade and other receivables | 21 | 6,486 | 4,860 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Cash and cash equivalents | 21 | 25,501 | 13,473 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Short term deposits | 21 | - | 1,020 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Derivative financial instruments | 22 | 1,338 | - |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | 40,121 | 23,859 |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Total assets | | 45,116 | 29,057 |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Current liabilities | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Trade and other payables | 24 | (6,694) | (4,169) |
+---------------------------------------------------------------------+-------+----------+-----------+
| Current tax liabilities | | (1,871) | (382) |
+---------------------------------------------------------------------+-------+----------+-----------+
| Derivative financial instruments | 22 | - | (197) |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | (8,565) | (4,748) |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Net current assets | | 31,556 | 19,111 |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Non-current liabilities | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Deferred tax liabilities | 23 | - | (78) |
+---------------------------------------------------------------------+-------+----------+-----------+
| Deferred creditor | 24 | (83) | (109) |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | (83) | (187) |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Total liabilities | | (8,648) | (4,935) |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Net assets | | 36,468 | 24,122 |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Equity | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Share capital | 26 | 355 | 351 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Share premium account | 27 | 11,558 | 10,871 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Own shares | 28 | (301) | - |
+---------------------------------------------------------------------+-------+----------+-----------+
| Translation reserve | 29 | 197 | (33) |
+---------------------------------------------------------------------+-------+----------+-----------+
| Share based compensation reserve | 29 | 962 | 483 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Hedging reserve | 29 | 933 | - |
+---------------------------------------------------------------------+-------+----------+-----------+
| Deferred tax reserve | 29 | 1,368 | 758 |
+---------------------------------------------------------------------+-------+----------+-----------+
| Retained earnings | 29 | 21,396 | 11,692 |
+---------------------------------------------------------------------+-------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+-------+----------+-----------+
| Total equity attributable to shareholders | | 36,468 | 24,122 |
+---------------------------------------------------------------------+-------+----------+-----------+
* restated to reflect the adoption of IFRIC 13 as per note 2.
The financial statements were approved by the Board of Directors and authorised
for issue on 7 September 2009.
They were signed on its behalf by:
Jeff Iliffe
Director
Company Balance Sheet
At 30 June 2009
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | 30/06/08 |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | 30/06/09 | restated* |
+---------------------------------------------------------------------+----------+----------+-----------+
| | Notes | GBP000 | GBP000 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Non-current assets | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Intangible assets | 17 | 792 | 994 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Property, plant and equipment | 18 | 3,054 | 3,976 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Investments | 19 | 105 | 45 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Deferred tax asset | 23 | 159 | - |
+---------------------------------------------------------------------+----------+----------+-----------+
| Derivative financial instruments | 22 | 326 | - |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | 4,436 | 5,015 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Current assets | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Inventories | 20 | 6,783 | 4,501 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Trade and other receivables | 21 | 6,579 | 5,144 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Cash and cash equivalents | 21 | 24,090 | 11,918 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Short term deposits | 21 | - | 1,020 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Derivative financial instruments | 22 | 1,338 | - |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | 38,790 | 22,583 |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Total assets | | 43,226 | 27,598 |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Current liabilities | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Trade and other payables | 24 | (6,193) | (3,719) |
+---------------------------------------------------------------------+----------+----------+-----------+
| Current tax liabilities | | (1,784) | (269) |
+---------------------------------------------------------------------+----------+----------+-----------+
| Derivative financial instruments | 22 | - | (197) |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | (7,977) | (4,185) |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Net current assets | | 30,813 | 18,398 |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Non-current liabilities | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Deferred tax liabilities | 23 | - | (178) |
+---------------------------------------------------------------------+----------+----------+-----------+
| Deferred creditor | 24 | (83) | (109) |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | (83) | (287) |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Total liabilities | | (8,060) | (4,472) |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Net assets | | 35,166 | 23,126 |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Equity | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Share capital | 26 | 355 | 351 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Share premium account | 27 | 11,558 | 10,871 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Own shares | 28 | (301) | - |
+---------------------------------------------------------------------+----------+----------+-----------+
| Share based compensation reserve | 29 | 908 | 444 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Hedging reserve | 29 | 933 | - |
+---------------------------------------------------------------------+----------+----------+-----------+
| Deferred tax reserve | 29 | 1,196 | 758 |
+---------------------------------------------------------------------+----------+----------+-----------+
| Retained earnings | 29 | 20,517 | 10,702 |
+---------------------------------------------------------------------+----------+----------+-----------+
| | | | |
+---------------------------------------------------------------------+----------+----------+-----------+
| Total equity attributable to shareholders | | 35,166 | 23,126 |
+---------------------------------------------------------------------+----------+----------+-----------+
* restated for the adoption of IFRIC 13 as per note 2.
The financial statements were approved by the Board of Directors and authorised
for issue on 7 September 2009.
They were signed on its behalf by:
Jeff Iliffe
Director
Consolidated Cash Flow Statement
For the year ended 30 June 2009
+-------------------------------------------------------------------+----------+----------+----------+
| | | Year | Year |
| | | ended | ended |
+-------------------------------------------------------------------+----------+----------+----------+
| | | 30/06/09 | 30/06/08 |
+-------------------------------------------------------------------+----------+----------+----------+
| | Note | GBP000 | GBP000 |
+-------------------------------------------------------------------+----------+----------+----------+
| Net cash inflow from operating activities | 30 | 14,812 | 7,142 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Investing activities | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Investment income | | 513 | 581 |
+-------------------------------------------------------------------+----------+----------+----------+
| Proceeds on disposal of property, plant and equipment | | - | (1) |
+-------------------------------------------------------------------+----------+----------+----------+
| Purchase of property, plant and equipment | | (1,756) | (2,445) |
+-------------------------------------------------------------------+----------+----------+----------+
| Purchase of intangible assets | | (259) | (274) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Net cash used in investing activities | | (1,502) | (2,139) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Financing activities | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Dividends paid | | (2,572) | (1,481) |
+-------------------------------------------------------------------+----------+----------+----------+
| Proceeds on issue of shares | | 691 | 257 |
+-------------------------------------------------------------------+----------+----------+----------+
| Purchase of own shares | | (316) | - |
+-------------------------------------------------------------------+----------+----------+----------+
| Decrease/(increase) in short term deposits | | 1,020 | (1,020) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Net cash used in financing activities | | (1,177) | (2,244) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Net increase in cash and cash equivalents | | 12,133 | 2,759 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Cash and cash equivalents at beginning of year | | 13,473 | 10,709 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Effect of foreign exchange rates | | (105) | 5 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Cash and cash equivalents at end of year | | 25,501 | 13,473 |
+-------------------------------------------------------------------+----------+----------+----------+
Company Cash Flow Statement
For the year ended 30 June 2009
+-------------------------------------------------------------------+----------+----------+----------+
| | | Year | Year |
| | | ended | ended |
+-------------------------------------------------------------------+----------+----------+----------+
| | | 30/06/09 | 30/06/08 |
+-------------------------------------------------------------------+----------+----------+----------+
| | Note | GBP000 | GBP000 |
+-------------------------------------------------------------------+----------+----------+----------+
| Net cash inflow from operating activities | 30 | 13,535 | 5,858 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Investing activities | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Investment income | | 503 | 561 |
+-------------------------------------------------------------------+----------+----------+----------+
| Proceeds on disposal of property, plant and equipment | | - | 1 |
+-------------------------------------------------------------------+----------+----------+----------+
| Purchases of property, plant and equipment | | (1,349) | (2,434) |
+-------------------------------------------------------------------+----------+----------+----------+
| Purchases of intangible assets | | (258) | (251) |
+-------------------------------------------------------------------+----------+----------+----------+
| Investment in subsidiary | | - | (29) |
+-------------------------------------------------------------------+----------+----------+----------+
| Dividends received | | 918 | 401 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Net cash used in investing activities | | (186) | (1,751) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Financing activities | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Dividends paid | | (2,572) | (1,481) |
+-------------------------------------------------------------------+----------+----------+----------+
| Proceeds on issue of shares | | 691 | 257 |
+-------------------------------------------------------------------+----------+----------+----------+
| Purchase of own shares | | (316) | - |
+-------------------------------------------------------------------+----------+----------+----------+
| Decrease/(increase) in short term deposits | | 1,020 | (1,020) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Net cash used in financing activities | | (1,177) | (2,244) |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Net increase in cash and cash equivalents | | 12,172 | 1,863 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Cash and cash equivalents at beginning of year | | 11,918 | 10,055 |
+-------------------------------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------------------------------+----------+----------+----------+
| Cash and cash equivalents at end of year | | 24,090 | 11,918 |
+-------------------------------------------------------------------+----------+----------+----------+
Company Statement of Recognised Income and Expense
For the year ended 30 June 2009
+-----------------------------------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
+-----------------------------------------------------------------------+----------+----------+
| | 30/06/09 | 30/06/08 |
+-----------------------------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+-----------------------------------------------------------------------+----------+----------+
| Gains/(losses) on cash flow hedges | 1,296 | (168) |
+-----------------------------------------------------------------------+----------+----------+
| Share based compensation charge recognised on behalf of subsidiaries | 60 | 29 |
+-----------------------------------------------------------------------+----------+----------+
| Tax on items taken directly to equity | 75 | 502 |
+-----------------------------------------------------------------------+----------+----------+
| Net income recognised directly in equity | 1,431 | 363 |
+-----------------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------------+----------+----------+
| Profit for the year | 11,484 | 5,126 |
+-----------------------------------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------------------------------+----------+----------+
| Total recognised income and expense for the year | 12,915 | 5,489 |
+-----------------------------------------------------------------------+----------+----------+
Notes to the Consolidated Financial Statements
For the year ended 30 June 2009
1. General information
Abcam plc (the Company) is incorporated in the United Kingdom under the
Companies Act 2006. The address of the registered office is 330 Cambridge
Science Park, Milton Road, Cambridge, CB4 0FL, United Kingdom.
The Group's activities consist of the development, marketing and selling of
antibodies and related products. The Group sells through the internet to
customers in most countries of the world. The Group operates through its parent
Company Abcam plc and through its wholly owned subsidiaries Abcam Inc and Abcam
KK.
These financial statements are presented in Pounds Sterling because that is the
currency of the primary economic environment in which the Group operates.
Foreign operations are included in accordance with the policies set out in note
3.
2. Adoption of new and revised Standards
In the current year, three Interpretations issued by the International Financial
Reporting Interpretations Committee ('IFRIC') are effective for the current
period. These are: IFRIC 11 IFRS 2 - Group and Treasury Share Transactions,
IFRIC 13 - Customer Loyalty Programmes and IFRIC 14 IAS 19 - The Limit on a
Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The
Group was previously accounting for group and treasury share transactions in
accordance with IFRIC 11, so no further changes have been made as a consequence
of the adoption of this Interpretation. The adoption of IFRIC 14 has not led to
any changes in the Group's accounting policies and had no impact on the Group's
financial position and performance. The adoption of IFRIC 13 has resulted in a
reduction in revenue and administration and management expenses by GBP96,000 in
the year ended 30 June 2008. The effect on the comparative balance sheet was to
increase trade and other payables by GBP96,000, with a corresponding decrease in
provisions. There is no overall impact on results or net assets.
The Group has adopted IFRS 8 Operating Segments in advance of its effective
date, with effect from 1 July 2008. IFRS 8 requires operating segments to be
identified on the basis of internal reports about components of the Group that
are regularly reviewed by the Chief Executive Officer to allocate resources to
the segments and to assess their performance. In contrast, the predecessor
Standard (IAS 14 Segment Reporting) required the Group to identify two sets of
segments (business and geographical), using a risks and rewards approach, with
the Group's system of internal financial reporting to key management personnel
serving only as the starting point for the identification of such segments. As a
result, following the adoption of IFRS 8, the identification of the Group's
reportable segments has changed. There is no effect on reported net income or
net assets as a result of applying this Standard.
At the date of authorisation of these financial statements, the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective (and in some cases had not been
adopted by the EU):
+--------------------------+---------------------------------------------------------------+
| IFRS 1 (amended)/IAS 27 | Cost of an Investment in a Subsidiary, Jointly Controlled |
| (amended) | Entity or Associate |
| IFRS 1 (amended) | Additional exemptions for first-time adopters |
| IFRS 2 (amended) | Share-based payment - Vesting Conditions and Cancellations |
| IFRS 2 (amended) | Group Cash-Settled Share Based Payment Transactions |
| IFRS 3 (revised 2008) | Business Combinations |
| IFRS 7 (amended) | Improving Disclosures about Financial Instruments |
| IAS 1 (revised 2007) | Presentation of Financial Statements |
| IAS 23 (revised 2007) | Borrowing Costs |
| IAS 27 (revised 2008) | Consolidated and Separate Financial Statements |
| IAS 32 (amended)/IAS 1 | Puttable Financial Instruments and Obligations Arising on |
| (amended) | Liquidation |
| IAS 39 (amended) | Financial Instruments: Recognition and Measurement: eligible |
| IAS 39 (amended) | hedged items |
| IAS 39 (amended)/IFRIC 9 | Financial Instruments: Reclassification of Financial Assets: |
| (amended) | Effective date and transition |
| IFRIC 12 | Embedded Derivatives |
| IFRIC 15 | Service Concession Arrangements |
| IFRIC 16 | Agreements for the Construction of Real Estate |
| Improvements to IFRSs | Hedges of a Net Investment in a Foreign Operation |
| (May 2008) | |
+--------------------------+---------------------------------------------------------------+
The amendment to IFRS 2 restricts the definition of vesting conditions to
include only service conditions (requiring a specified period of service to be
completed) and performance conditions (requiring the other party to achieve a
personal goal or contribute to achieving a corporate target). All other features
are not vesting conditions, and whereas failure to achieve such a condition was
previously regarded as a forfeiture (giving rise to a reversal of amounts
previously charged to profit) it must be reflected in the grant date fair value
of the award and treated as a cancellation, which results in either an
acceleration of the expected charge, or a continuation over the remaining
vesting period, depending on whether the condition is under the control of the
entity or counterparty. The Group is currently assessing its impact on the
financial statements, although it is not expected to be material.
Whilst the revised IAS 1 will have no impact on the measurement of the Group's
results or net assets, it is likely to result in certain changes in the
presentation of the Group's financial statements for the forthcoming year.
The Directors anticipate that the adoption of the remaining Standards and
Interpretations in future periods will have no material impact on the Group's
reported income or net assets in the period of adoption.
3. Significant accounting policies
Basis of accounting
The financial information set out above does not constitute the company's
statutory accounts for the years ended 30 June 2009 or 2008, but is derived from
those accounts. Statutory accounts for 2008 have been delivered to the Registrar
of Companies and those for 2009 will be delivered following the company's AGM.
The auditors have reported on those accounts; their reports were unqualified,
did not draw attention to any matters by way of emphasis without qualifying
their report and did not contain statements under s498(2) or (3) Companies Act
2006 or equivalent preceding legislation.
After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the
foreseeable future. For this reason, they continue to adopt the going concern
basis in preparing the financial statements.
The financial statements have been prepared on the historical cost basis, except
for the revaluation of certain financial instruments. The Group financial
statements are presented in Sterling and all values are rounded to the nearest
thousand Pounds (GBP000) except when otherwise indicated. The principal
accounting policies adopted are set out below.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company made up to 30 June each year.
Control is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its
activities.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided in
the normal course of business, net of discounts, VAT and other sales-related
taxes.
Sales of goods are recognised when goods are despatched and title has passed.
Sales of goods that result in award credits for customers, under the AbPoints
Scheme, are accounted for as multiple element revenue transactions and the fair
value of the consideration received or receivable is allocated between the goods
supplied and the award credits granted. The consideration allocated to the award
credits is measured by reference to their fair value - the amount for which the
award credits could be sold separately. Such consideration is not recognised as
revenue at the time of the initial sale transaction, but is deferred and
recognised as revenue when the award credits are redeemed and the Group's
obligations have been fulfilled.
Interest income is accrued on a time basis, by reference to the principal
outstanding and the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of
the financial asset to that asset's net carrying amount.
Dividend income from investments is recognised when the shareholders' rights to
receive payment have been established.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other
leases are classified as operating leases.
Rentals payable under operating leases are charged to income on a straight-line
basis over the term of the relevant lease. Benefits received and receivable as
an incentive to enter into an operating lease are also spread on a straight-line
basis over the lease term.
Assets held under finance leases are recognised as assets of the Group at their
fair value or, if lower, at the present value of the minimum lease payments,
each determined at the inception of the lease. The corresponding liability to
the lessor is included in the balance sheet as a finance lease obligation. Lease
payments are apportioned between finance charges and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance
of the liability. Finance charges are charged directly against income.
Foreign currencies
The individual financial statements of each group company are presented in the
currency of the primary economic environment in which it operates (its
functional currency). For the purposes of the consolidated financial statements,
the results and financial position of each group company are expressed in
Sterling, which is the functional currency of the Company, and the presentation
currency for the consolidated financial statements.
In preparing the financial statements of the individual companies, transactions
in currencies other than the entity's functional currency (foreign currencies)
are recorded at the rates of exchange prevailing at the dates of the
transactions. At each balance sheet date, monetary assets and liabilities that
are denominated in foreign currencies are retranslated to the rates prevailing
at the balance sheet date. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at the
date when the fair value was determined. Non-monetary items that are measured in
terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the period in which
they arise except for:
* exchange differences on transactions entered into to hedge certain foreign
currency risks (see below under financial instruments/hedge accounting); and
* exchange differences on monetary items receivable from or payable to a foreign
operation for which settlement is neither planned nor likely to occur, which
form part of the net investment in a foreign operation, and which are recognised
in the foreign currency translation reserve and recognised in profit or loss on
disposal of the net investment.
For the purpose of presenting consolidated financial statements, the results of
the operations of the Company's overseas subsidiaries, Abcam Inc and Abcam KK,
are translated at the monthly average exchange rates during the period and their
balance sheets at the rates prevailing at the balance sheet date. Exchange
differences arising on the translation of the opening net assets and results of
operations are classified as equity and recognised in the Group's foreign
currency translation reserve.
Borrowing costs
Borrowing costs are recognised in profit or loss in the period in which they are
incurred.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due. Payments made to state-managed retirement benefit
schemes are dealt with as payments to defined contribution schemes where the
nature of the Group's obligations under the schemes is equivalent to those
arising in a defined contribution retirement benefit scheme.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes some items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or from the initial
recognition of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except where it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of assets over
their estimated useful lives, using the straight-line method, on the following
bases:
+---------------------------+--------------------------------------------------------------+
| Office equipment, | 20% per annum |
| fixtures and fittings | 20% per annum |
| Laboratory equipment | 33% per annum |
| Computer equipment | 33% per annum |
| Hybridomas | |
+---------------------------+--------------------------------------------------------------+
The gain or loss arising on the disposal or retirement of an asset is determined
as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in income.
Intangible assets
Expenditure on research activities is recognised as an expense in the period in
which it is incurred.
Expenditure on development activities is recognised as an asset if and only if
it meets the recognition criteria set out in IAS 38 - Intangible Assets.
Payments made to acquire software and distribution rights from third parties are
capitalised at cost and amortised on a straight line basis over their estimated
minimum useful lives. The minimum useful life is determined to be three years in
the case of software, and the term of the deal in the case of distribution
rights, which can extend up to 10 years.
Impairment of tangible and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that
those assets have suffered an impairment loss. If such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of
the impairment loss (if any). An intangible asset with an indefinite useful life
is tested for impairment annually and whenever there is an indication that the
asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying
amount, the carrying amount of the asset is reduced to its recoverable
amount. An impairment loss is recognised as an expense immediately.
Investments
Investments in subsidiaries are stated at cost less, where appropriate,
provisions for impairment.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises direct materials and, where applicable, direct labour costs and an
attributable portion of production overheads that have been incurred in bringing
the inventories to their present location and condition. Cost is calculated
using the standard cost method. Net realisable value represents the estimated
selling price less all estimated costs of completion and costs to be incurred in
marketing, selling and distribution. Provision is made for obsolete, slow moving
or defective items where appropriate.
Financial instruments
Financial assets and financial liabilities are recognised on the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.
Trade and other receivables
Trade receivables are measured at initial recognition at fair value. Appropriate
allowances for estimated irrecoverable amounts are recognised in the income
statement when there is objective evidence that the asset is impaired. When a
trade receivable is considered uncollectable, it is written off against the
allowance account. Subsequent recoveries of amounts previously written off are
credited against the allowance account. Changes in the carrying amount of the
allowance account are recognised in the income statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the group after
deducting all of its liabilities. The accounting policies adopted for specific
financial liabilities and equity instruments are set out below.
Trade payables
Trade payables are measured at amortised cost.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
Derivative financial instruments
Forward contracts are used by the Group to manage its exposure to the risk
associated with the variability in cash flows in relation to both recognised
assets or liabilities and forecast transactions.
Derivatives are initially recognised at fair value at the date a derivative
contract is entered into and are subsequently remeasured to their fair value at
each balance sheet date. A derivative with a positive fair value is recognised
as a financial asset whereas a derivative with a negative fair value is
recognised as a financial liability. The resulting gain or loss is recognised in
profit or loss immediately unless the derivative is designated and effective as
a hedging instrument, in which event the timing of the recognition in profit or
loss depends on the nature of the hedge relationship.
A derivative is presented as a non-current asset or non-current liability if the
remaining maturity of the instrument is more than 12 months and it is not
expected to be realised or settled within 12 months. Other derivatives are
presented as current assets or current liabilities.
Hedge accounting
The Group designates certain derivatives as either hedges of the fair value of
recognised assets or liabilities or firm commitments (fair value hedges), or
hedges of highly probable forecast transactions or hedges of foreign currency
risk of firm commitments (cash flow hedges).
At the inception of the hedge relationship, the Group documents the relationship
between the hedging instrument and the hedged item, along with its risk
management objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and on an ongoing
basis, the Group documents whether the hedging instrument that is used in a
hedging relationship is effective in offsetting changes in fair values or cash
flows of the hedged item.
Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair
value hedges are recognised immediately in profit or loss, together with any
changes in the fair value of the hedged item that is attributable to the hedged
risk. The change in the fair value of the hedging instrument and the change in
the hedged item attributable to the hedged risk are recognised in the line of
the income statement relating to the hedged item.
Hedge accounting is discontinued when the Group revokes the hedging
relationship, the hedging instrument expires or is sold, terminated or
exercised, or no longer qualifies for hedge accounting. The adjustment to the
carrying amount of the hedged item arising from the hedged risk is amortised to
the income statement from that date.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are
designated and qualify as cash flow hedges are deferred in equity. The gain or
loss relating to the ineffective portion is recognised immediately in profit or
loss, and is included in the 'administration and management expenses' line of
the income statement.
Amounts deferred in equity are recycled in profit or loss in the periods when
the hedged item is recognised in profit or loss, in the same line of the income
statement as the recognised hedged item.
Hedge accounting is discontinued when the Group revokes the hedging
relationship, the hedging instrument expires or is sold, terminated or
exercised, or no longer qualifies for hedge accounting. Any cumulative gain or
loss deferred in equity at that time remains in equity and is recognised when
the forecast transaction is ultimately recognised in profit or loss. When a
forecast transaction is no longer expected to occur, the cumulative gain or loss
that was deferred in equity is recognised immediately in profit or loss.
Share based payments
The Group has applied the requirements of IFRS 2 Share based payment. In
accordance with IFRS 1, IFRS 2 has been applied to all grants of equity
instruments after 7 November 2002 that were unvested at 1 July 2006.
Incentives in the form of shares are provided to employees under share option,
share purchase ('SIP') and long-term incentive plans ('LTIP's). Equity-settled
share based payments are measured at fair value (excluding the effect of non
market-based vesting conditions) at the date of grant. The fair value determined
at the grant date of the equity-settled share based payments is expensed on a
straight line basis over the vesting period, based on the Group's estimate of
the number of shares that will eventually vest.
Fair value of options issued under the Group's share option schemes is measured
by the use of the Monte Carlo Simulation.
Fair value of the awards under the Group's LTIP is measured by the use of the
Monte Carlo Simulation for the TSR portion and the Binomial Model for the EPS
portion.
Fair value of an equity-settled payment under the SIP is measured as the face
value of the award on the date of grant.
The expected life used in the model has been adjusted, based on management's
best estimate, for the effects of non-transferability, exercise restrictions and
behavioural considerations. Charges made to the income statement in respect of
share-based payments are credited to retained earnings.
The Group operates an employee benefit trust as part of its incentive plans for
employees. All assets and liabilities of the trust are recorded in the balance
sheet as assets and liabilities of the Company until such time as the assets are
awarded to the beneficiaries. All income and expenditure of the trust is
similarly brought into the results of the Company.
Own shares
Own equity instruments which are acquired are recognised at cost and deducted
from equity. No gain or loss is recognised in the income statement on the
purchase, sale, issue or cancellation of the Group's own equity instruments. Any
difference between the carrying amount and the consideration is recognised in
reserves.
4. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group's accounting policies, which are described in
note 3, the Directors are required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities as at the date of reporting
the financial statements, and the reported amounts of revenues and expenditure
during the year. In preparation of the consolidated financial statements,
estimates and assumptions have been made by the Directors concerning the fair
value of share options, the estimated useful lives of fixed assets, accruals and
provisions required, the carrying value of investments, the recoverability of
deferred tax assets, the carrying value of intangible assets and other similar
evaluations. Actual amounts may differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are discussed below.
Impairment of property, plant and equipment
As a result of a restructuring exercise in the Company's manufacturing
activities, certain assets were no longer generating future economic benefits.
The Directors have made an assessment of the recoverable amount of these assets,
being the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted. The recoverable amount of
the assets is estimated to be less than their carrying amount, and so the
carrying amount of the assets has been reduced to the recoverable amount. An
impairment loss of GBP1.1m has been recognised as an expense immediately.
Impairment of intangibles
Management is in the process of renegotiating a product line acquisition deal.
Consequently, it was considered that the carrying value of this intangible was
no longer supportable and an impairment loss of GBP0.2m has been recognised to
take account of the recoverable amount of the contract.
Fair value of derivatives and other financial instruments
As described in note 25, the Directors use their judgement in selecting an
appropriate valuation technique for financial instruments not quoted in an
active market. Valuation techniques commonly used by market practitioners are
applied. For derivative financial instruments, assumptions are made based on
quoted market rates adjusted for specific features of the instrument. Other
financial instruments are valued using a discounted cash flow analysis based on
assumptions supported, where possible, by observable market prices or rates.
Valuation of own manufactured inventory
The standard costs used for the valuation of own manufactured inventory require
a number of assumptions concerning the allocation of overheads. These
assumptions are based primarily on management's estimates of time spent in each
relevant area of activity.
Provision for slow moving or defective inventory
The provision for slow moving or defective inventory is based on management's
estimation of the commercial life and shelf life of inventory lines and is
applied on a prudent basis. In assessing this, management takes in to
consideration the sales history of products and the length of time that they
have been available for resale.
5. Income statement for the Company
As permitted by section 408 of the Companies Act 2006 the Company has elected
not to present its own income statement for the year. Abcam plc reported a
profit for the year ended 30 June 2009 of GBP11,484,000 (2008: GBP5,126,000).
6. Revenue
An analysis of the Group's revenue, all of which derives from continuing
operations, is as follows:
+-------------------------------------------------------------------+----------+------------+-----------+
| | | | Year |
| | | | ended |
+-------------------------------------------------------------------+----------+------------+-----------+
| | | Year ended | 30/06/08 |
+-------------------------------------------------------------------+----------+------------+-----------+
| | | 30/06/09 | restated* |
+-------------------------------------------------------------------+----------+------------+-----------+
| | Note | GBP000 | GBP000 |
+-------------------------------------------------------------------+----------+------------+-----------+
| Sales of goods | | 56,801 | 36,598 |
+-------------------------------------------------------------------+----------+------------+-----------+
| Investment revenue | 11 | 431 | 581 |
+-------------------------------------------------------------------+----------+------------+-----------+
| | | 57,232 | 37,179 |
+-------------------------------------------------------------------+----------+------------+-----------+
* restated to reflect the adoption of IFRIC 13 as per note 2.
7. Operating segments
Adoption of IFRS 8, Operating Segments
The Group has adopted IFRS 8 Operating Segments in advance of its effective
date, with effect from 1 July 2008. IFRS 8 requires operating segments to be
identified on the basis of internal reports about components of the Group that
are regularly reviewed by the chief operating decision maker, being the Chief
Executive Officer, to allocate resources to the segments and to assess their
performance. In contrast, the predecessor Standard (IAS 14 Segment Reporting)
required the Group to identify two sets of segments (business and geographical),
using a risks and rewards approach, with the Group's system of internal
financial reporting to key management personnel serving only as the starting
point for the identification of such segments. As a result, following the
adoption of IFRS 8, the identification of the Group's reportable segments has
changed.
Products and services from which reportable segments derive their revenues
In prior years, segment information reported externally was analysed on the
basis of geographical locations. This is because the Directors consider that
there are no identifiable business segments that are engaged in providing
individual products or services or a group of related products and services that
are subject to risks and returns that are different to the core business. The
information reported to the Group's Chief Executive Officer for the purposes of
resource allocation and assessment of performance is based wholly on the overall
activities of the Group. The Group has therefore determined that it has only one
reportable segment under IFRS 8, which is 'sales of antibodies and related
products'. The Group's revenue and results and assets for this one reportable
segment can be determined by reference to the Group's income statement and
balance sheet.
The Group has no individual product or customer which comprises more than ten
per cent of its revenues.
Geographical information
The Group's revenue from external customers and information about its
non-current segment assets (excluding deferred tax) by geographical location are
detailed below:
+-----------+----------+-----------+--------+----------+----------+
| | Revenue | | Non-current |
| | | | assets |
+-----------+----------------------+--------+---------------------+
| | | Year | | | |
| | | ended | | | |
+-----------+----------+-----------+--------+----------+----------+
| | Year | 30/06/08 | | As at | As at |
| | ended | | | | |
+-----------+----------+-----------+--------+----------+----------+
| | 30/06/09 | restated* | | 30/06/09 | 30/06/08 |
+-----------+----------+-----------+--------+----------+----------+
| | GBP'000 | GBP000 | | GBP000 | GBP000 |
+-----------+----------+-----------+--------+----------+----------+
| United | 24,535 | 15,831 | | 435 | 209 |
| States | | | | | |
+-----------+----------+-----------+--------+----------+----------+
| United | 4,883 | 4,148 | | 4,173 | 4,970 |
| Kingdom | | | | | |
| (country | | | | | |
| of | | | | | |
| domicile) | | | | | |
+-----------+----------+-----------+--------+----------+----------+
| Germany | 4,719 | 2,935 | | - | - |
+-----------+----------+-----------+--------+----------+----------+
| Japan | 4,634 | 2,115 | | 52 | 19 |
+-----------+----------+-----------+--------+----------+----------+
| Other | 18,030 | 11,569 | | - | - |
| countries | | | | | |
+-----------+----------+-----------+--------+----------+----------+
| | 56,801 | 36,598 | | 4,660 | 5,198 |
+-----------+----------+-----------+--------+----------+----------+
* restated to reflect the adoption of IFRIC 13 as per note 2.
Revenues are attributed to countries on the basis of the customer's location. No
country included within 'Other countries' contributes more than 5% of the
Group's total revenue.
8. Profit for the year
Profit for the year has been arrived at after charging/(crediting):
+------------------------------------------------------------------+----------+------------+----------+
| | | Year ended | Year |
| | | | ended |
+------------------------------------------------------------------+----------+------------+----------+
| | | 30/06/09 | 30/06/08 |
+------------------------------------------------------------------+----------+------------+----------+
| | Notes | GBP000 | GBP000 |
+------------------------------------------------------------------+----------+------------+----------+
| Net foreign exchange losses | | 81 | 136 |
+------------------------------------------------------------------+----------+------------+----------+
| Research and development expenditure | | 3,076 | 2,417 |
+------------------------------------------------------------------+----------+------------+----------+
| Operating lease rentals - land and buildings | 12 | 822 | 545 |
+------------------------------------------------------------------+----------+------------+----------+
| Depreciation of property, plant and equipment | 18 | 1,417 | 1,130 |
+------------------------------------------------------------------+----------+------------+----------+
| Impairment loss on property, plant and equipment | 18 | 1,074 | - |
+------------------------------------------------------------------+----------+------------+----------+
| Loss on disposal of property, plant and equipment | | 160 | 56 |
+------------------------------------------------------------------+----------+------------+----------+
| Amortisation of intangible assets included within administration | 17 | 261 | 307 |
| and management expenses | | | |
+------------------------------------------------------------------+----------+------------+----------+
| Impairment loss on intangible assets included within | 17 | 201 | 642 |
| administration and management expenses | | | |
+------------------------------------------------------------------+----------+------------+----------+
| Cost of inventories recognised as an expense | | 18,870 | 13,850 |
+------------------------------------------------------------------+----------+------------+----------+
| Write-down of inventories recognised as an expense | | 550 | 539 |
+------------------------------------------------------------------+----------+------------+----------+
| Staff costs | 10 | 10,148 | 7,308 |
+------------------------------------------------------------------+----------+------------+----------+
| Impairment (gain)/loss recognised on trade receivables | 21 | (84) | 367 |
+------------------------------------------------------------------+----------+------------+----------+
| Legal fees associated with potential offer for Group | | - | 250 |
+------------------------------------------------------------------+----------+------------+----------+
| Auditors' remuneration | 9 | 102 | 91 |
+------------------------------------------------------------------+----------+------------+----------+
9. Auditors' remuneration
A detailed analysis of the auditors' remuneration on a worldwide basis is
provided below:
+-----------------------------------------------------------------------+-------------+----------+
| | Year ended | Year |
| | | ended |
+-----------------------------------------------------------------------+-------------+----------+
| | 30/06/09 | 30/06/08 |
+-----------------------------------------------------------------------+-------------+----------+
| | GBP000 | GBP000 |
+-----------------------------------------------------------------------+-------------+----------+
| Fees payable to the Company's auditors for the audit of the Company's | 62 | 62 |
| annual accounts | | |
+-----------------------------------------------------------------------+-------------+----------+
| | | |
+-----------------------------------------------------------------------+-------------+----------+
| Fees payable to the Company's auditors for other services to the | | |
| Group | | |
+-----------------------------------------------------------------------+-------------+----------+
| - The audit of the Company's subsidiaries pursuant to legislation | 13 | 13 |
+-----------------------------------------------------------------------+-------------+----------+
| Total audit fees | 75 | 75 |
+-----------------------------------------------------------------------+-------------+----------+
| | | |
+-----------------------------------------------------------------------+-------------+----------+
| - Tax services | 24 | 13 |
+-----------------------------------------------------------------------+-------------+----------+
| - Recruitment and remuneration services | - | 3 |
+-----------------------------------------------------------------------+-------------+----------+
| - Other services relating to treasury advice | 3 | - |
+-----------------------------------------------------------------------+-------------+----------+
| Total non-audit fees | 27 | 16 |
+-----------------------------------------------------------------------+-------------+----------+
| | | |
+-----------------------------------------------------------------------+-------------+----------+
| Total auditors' remuneration | 102 | 91 |
+-----------------------------------------------------------------------+-------------+----------+
10. Staff costs
Group
The average monthly number of employees (including executive directors) was:
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | Group | | Company |
+-----------------------------------------------------+---------------------+----------+-----------------------+
| | Year | Year | | Year ended | Year |
| | ended | ended | | | ended |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | 30/06/09 | 30/06/08 | | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | Number | Number | | Number | Number |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Management, administrative, marketing and | 170 | 130 | | 111 | 88 |
| distribution | | | | | |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Laboratory | 44 | 36 | | 44 | 36 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | 214 | 166 | | 155 | 124 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | | | | | |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Their aggregate remuneration comprised: | | | | | |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | Group | | Company |
+-----------------------------------------------------+---------------------+----------+-----------------------+
| | Year | Year | | Year ended | Year |
| | ended | ended | | | ended |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | 30/06/09 | 30/06/08 | | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | GBP000 | GBP000 | | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Wages and salaries | 8,054 | 5,776 | | 5,722 | 4,508 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Social security costs | 683 | 525 | | 418 | 350 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Pension costs | 947 | 815 | | 867 | 776 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| Charge in respect of share options granted | 464 | 192 | | 404 | 162 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
| | 10,148 | 7,308 | | 7,411 | 5,796 |
+-----------------------------------------------------+----------+----------+----------+------------+----------+
11. Investment revenue
+---------------------------------------------------------------------+------------+----------+
| | Year ended | Year |
| | | ended |
+---------------------------------------------------------------------+------------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+------------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+------------+----------+
| Interest revenue on cash and short term deposits | 431 | 581 |
+---------------------------------------------------------------------+------------+----------+
12. Operating lease arrangements
+---------------------------------------------------------------------+------------+----------+
| | Year ended | Year |
| | | ended |
+---------------------------------------------------------------------+------------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+------------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+------------+----------+
| Minimum lease payments under operating leases recognised as an | | |
| expense in the year: | | |
+---------------------------------------------------------------------+------------+----------+
| Land and buildings | 822 | 545 |
+---------------------------------------------------------------------+------------+----------+
At the balance sheet date, the Group and Company had outstanding commitments for
future minimum lease payments under non-cancellable operating leases, all of
which relate to land and buildings, which fall due as follows:
+-----------------------------------------------------------+----------+----------+----------+----------+----------+
| | Group | | Company |
+-----------------------------------------------------------+---------------------+----------+---------------------+
| | 30/06/09 | 30/06/08 | | 30/06/09 | 30/06/08 |
+-----------------------------------------------------------+----------+----------+----------+----------+----------+
| | GBP000 | GBP000 | | GBP000 | GBP000 |
+-----------------------------------------------------------+----------+----------+----------+----------+----------+
| Within one year | 834 | 651 | | 438 | 392 |
+-----------------------------------------------------------+----------+----------+----------+----------+----------+
| In the second to fifth years inclusive | 2,552 | 1,615 | | 2,158 | 996 |
+-----------------------------------------------------------+----------+----------+----------+----------+----------+
| | 3,386 | 2,266 | | 2,596 | 1,388 |
+-----------------------------------------------------------+----------+----------+----------+----------+----------+
The above table reflects the committed cash payments under operating leases,
rather than the expected charge to the income statement in the relevant periods.
The effect on the income statement will differ to the above figures to the
extent of the amortisation of a GBP1.1m lease incentive received on signing of a
new lease in 2008/09, and also the amortisation of the rent-free period included
in the same lease agreement. The expected operating lease charge in 2009/10 is
expected to be GBP778,000 for the Group and GBP382,000 for the Company.
13. Other gains or losses
+---------------------------------------------------------------------+------------+----------+
| | Year ended | Year |
| | | ended |
+---------------------------------------------------------------------+------------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+------------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+------------+----------+
| (Gain)/loss in fair value of forward exchange contracts | | |
+---------------------------------------------------------------------+------------+----------+
| - On contracts used as hedging instruments | (1,296) | - |
+---------------------------------------------------------------------+------------+----------+
| - On other contracts (see accounting policy note for derivative | (368) | 197 |
| financial instruments) | | |
+---------------------------------------------------------------------+------------+----------+
| | (1,664) | 197 |
+---------------------------------------------------------------------+------------+----------+
14. Tax
+---------------------------------------------------------------------+------------+----------+
| | Year ended | Year |
| | | ended |
+---------------------------------------------------------------------+------------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+------------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+------------+----------+
| Current tax | 4,539 | 1,632 |
+---------------------------------------------------------------------+------------+----------+
| Deferred tax (note 23) | (527) | 430 |
+---------------------------------------------------------------------+------------+----------+
| | 4,012 | 2,062 |
+---------------------------------------------------------------------+------------+----------+
Corporation tax is calculated at 28% (2008: 29.5%) of the estimated assessable
profit for the year. Taxation for other jurisdictions is calculated at the rates
prevailing in the respective jurisdictions.
The charge for the year can be reconciled to the profit per the income statement
as follows:
+-----------------------------------------------------+------------+----------+----------+----------+
| | Year ended | Year | Year | Year |
| | | ended | ended | ended |
+-----------------------------------------------------+------------+----------+----------+----------+
| | 30/06/09 | 30/06/09 | 30/06/08 | 30/06/08 |
+-----------------------------------------------------+------------+----------+----------+----------+
| | GBP000 | % | GBP000 | % |
+-----------------------------------------------------+------------+----------+----------+----------+
| Profit before tax | 16,303 | | 7,952 | |
+-----------------------------------------------------+------------+----------+----------+----------+
| Tax at the UK corporation tax rate of 28% (2008: | 4,565 | 28.0% | 2,346 | 29.5% |
| 29.5%) | | | | |
+-----------------------------------------------------+------------+----------+----------+----------+
| Effect of different tax rates of subsidiaries | 175 | 1.0% | 158 | 2.0% |
| operating in different jurisdictions | | | | |
+-----------------------------------------------------+------------+----------+----------+----------+
| Tax effect of expenses that are not deductible in | 48 | 0.3% | 75 | 0.9% |
| determining taxable profit | | | | |
+-----------------------------------------------------+------------+----------+----------+----------+
| R&D tax credit uplift | (771) | (4.7)% | (325) | (4.1)% |
+-----------------------------------------------------+------------+----------+----------+----------+
| Deduction for exercise for share options | - | -% | (122) | (1.5)% |
+-----------------------------------------------------+------------+----------+----------+----------+
| Prior year adjustments | (5) | (0.0)% | (70) | (0.9)% |
+-----------------------------------------------------+------------+----------+----------+----------+
| Tax expense and effective rate for the year | 4,012 | 24.6% | 2,062 | 25.9% |
+-----------------------------------------------------+------------+----------+----------+----------+
15. Dividends
+--------------------------------------------------------------------+------------+----------+
| | Year ended | Year |
| | | ended |
+--------------------------------------------------------------------+------------+----------+
| | 30/06/09 | 30/06/08 |
+--------------------------------------------------------------------+------------+----------+
| | GBP000 | GBP000 |
+--------------------------------------------------------------------+------------+----------+
| Amounts recognised as distributions to equity holders in the year: | | |
+--------------------------------------------------------------------+------------+----------+
| Final dividend for the year ended 30 June 2008 of 4.56p (2007: | 1,612 | 1,116 |
| 3.19p) per share | | |
+--------------------------------------------------------------------+------------+----------+
| Interim dividend for the year ended 30 June 2009 of 2.71p (2008: | 960 | 365 |
| 1.04p) per share | | |
+--------------------------------------------------------------------+------------+----------+
| Total distributions to equity holders in the period | 2,572 | 1,481 |
+--------------------------------------------------------------------+------------+----------+
| Proposed final dividend for the year ended 30 June 2009 of 9.40p | 3,339 | 1,599 |
| (2008: 4.56p) per share | | |
+--------------------------------------------------------------------+------------+----------+
The proposed final dividend is subject to approval of the shareholders at the
AGM and has not been included as a liability in these financial statements.
16. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
+--------------------------------------------------------------------+------------+------------+
| | Year ended | Year |
| | | ended |
+--------------------------------------------------------------------+------------+------------+
| | 30/06/09 | 30/06/08 |
+--------------------------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+--------------------------------------------------------------------+------------+------------+
| Earnings | | |
+--------------------------------------------------------------------+------------+------------+
| Earnings for the purposes of basic and diluted earnings per share | | |
+--------------------------------------------------------------------+------------+------------+
| being net profit attributable to equity holders of the parent | 12,291 | 5,890 |
+--------------------------------------------------------------------+------------+------------+
| | | |
+--------------------------------------------------------------------+------------+------------+
| Number of shares | | |
+--------------------------------------------------------------------+------------+------------+
| Weighted average number of ordinary shares for the purposes of | 35,287,943 | 34,902,538 |
| basic earnings per share | | |
+--------------------------------------------------------------------+------------+------------+
| Effect of dilutive potential ordinary shares: | | |
+--------------------------------------------------------------------+------------+------------+
| Share options | 679,385 | 671,614 |
+--------------------------------------------------------------------+------------+------------+
| Weighted average number of ordinary shares for the purposes of | 35,967,328 | 35,574,152 |
| diluted earnings per share | | |
+--------------------------------------------------------------------+------------+------------+
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of shares outstanding
during the year. Diluted earnings per share is calculated on the same basis as
basic earnings per share but with a further adjustment for the weighted average
shares in issue to reflect the effect of all dilutive potential ordinary shares.
The number of dilutive potential ordinary shares is derived from the number of
share options granted to employees where the exercise price is less than the
average market price of the Company's ordinary shares during the year.
17. Intangible assets
Group
+------------------------------------------------------+---------+--------------+----------+--------+
| | Upfront | Distribution | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| | licence | rights | Software | Total |
| | fees | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Cost | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2007 | 150 | 1,798 | - | 1,948 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Additions | 15 | 237 | - | 252 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| Revaluation for impairment | - | (642) | - | (642) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2008 | 164 | 1,393 | - | 1,557 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Additions | 99 | - | 162 | 261 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2009 | 262 | 1,393 | 162 | 1,817 |
+------------------------------------------------------+---------+--------------+----------+--------+
| | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| Amortisation and impairment | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2007 | 68 | 189 | - | 257 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Charge for the year | 53 | 254 | - | 307 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2008 | 120 | 443 | - | 563 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Charge for the year | 61 | 157 | 43 | 261 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Impairment loss | - | 201 | - | 201 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2009 | 180 | 801 | 43 | 1,024 |
+------------------------------------------------------+---------+--------------+----------+--------+
| | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| Carrying amount | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2008 | 44 | 950 | - | 994 |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2009 | 82 | 592 | 119 | 793 |
+------------------------------------------------------+---------+--------------+----------+--------+
Company
+------------------------------------------------------+---------+--------------+----------+--------+
| | Upfront | Distribution | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| | licence | rights | Software | Total |
| | fees | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Cost | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2007 | 150 | 1,798 | - | 1,948 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Additions | 15 | 237 | - | 252 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| Revaluation for impairment | - | (642) | - | (642) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2008 | 164 | 1,393 | - | 1,557 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Additions | 99 | - | 161 | 260 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2009 | 262 | 1,393 | 161 | 1,816 |
+------------------------------------------------------+---------+--------------+----------+--------+
| | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| Amortisation and impairment | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2007 | 68 | 189 | - | 257 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Charge for the year | 53 | 254 | - | 307 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 1 July 2008 | 120 | 443 | - | 563 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Charge for the year | 61 | 157 | 43 | 261 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Impairment loss | - | 201 | - | 201 |
+------------------------------------------------------+---------+--------------+----------+--------+
| Disposals | (1) | - | - | (1) |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2009 | 180 | 801 | 43 | 1,024 |
+------------------------------------------------------+---------+--------------+----------+--------+
| | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| Carrying amount | | | | |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2008 | 44 | 950 | - | 994 |
+------------------------------------------------------+---------+--------------+----------+--------+
| At 30 June 2009 | 82 | 592 | 118 | 792 |
+------------------------------------------------------+---------+--------------+----------+--------+
The amortisation period for the upfront licence fees and software is three
years. The amortisation period for the distribution rights is the term of the
deal. The impairment loss is in respect of the reduction in the forecast
revenues and profits of one of the distribution rights agreements.
18. Property, plant and equipment
Group
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | | | Office | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | | | equipment, | | |
| | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | Computer | Laboratory | fixtures | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | equipment | equipment | and | Hybridomas | Total |
| | | | fittings | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Cost | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2007 | 454 | 2,531 | 948 | - | 3,933 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Additions | 158 | 2,168 | 166 | 22 | 2,514 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Exchange differences | 4 | 1 | 2 | - | 7 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Disposals | (28) | (21) | (5) | - | (54) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2008 | 588 | 4,679 | 1,111 | 22 | 6,400 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Additions | 193 | 653 | 1,025 | 66 | 1,937 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Exchange differences | 30 | 53 | 48 | - | 131 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Disposals | (68) | (1) | (780) | (35) | (884) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 30 June 2009 | 743 | 5,384 | 1,404 | 53 | 7,584 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Accumulated depreciation and impairment | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2007 | 218 | 346 | 537 | - | 1,101 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Charge for the year | 149 | 709 | 269 | 3 | 1,130 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Exchange differences | (23) | (9) | (5) | - | (37) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Eliminated on disposals | 1 | - | 1 | - | 2 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2008 | 345 | 1,046 | 802 | 3 | 2,196 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Charge for the year | 165 | 1,032 | 200 | 20 | 1,417 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Impairment loss | 63 | 988 | 9 | 14 | 1,074 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Exchange differences | 17 | 23 | 40 | - | 80 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Eliminated on disposals | (63) | (1) | (654) | (6) | (724) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 30 June 2009 | 527 | 3,088 | 397 | 31 | 4,043 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
+---------------------------------------------+--------+--------+--------+--------+--------+
| Carrying amount | | | | | |
+---------------------------------------------+--------+--------+--------+--------+--------+
| At 30 June 2008 | 243 | 3,633 | 309 | 19 | 4,204 |
+---------------------------------------------+--------+--------+--------+--------+--------+
| At 30 June 2009 | 216 | 2,296 | 1,007 | 22 | 3,541 |
+---------------------------------------------+--------+--------+--------+--------+--------+
Company
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | | | Office | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | | | equipment, | | |
| | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | Computer | Laboratory | fixtures | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | equipment | equipment | and | Hybridomas | Total |
| | | | fittings | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Cost | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2007 | 344 | 2,286 | 750 | - | 3,380 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Additions | 143 | 2,161 | 156 | 22 | 2,482 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Disposals | (26) | (20) | (2) | - | (48) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2008 | 461 | 4,427 | 904 | 22 | 5,814 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Additions | 138 | 630 | 693 | 66 | 1,527 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Disposals | (57) | (1) | (780) | (35) | (873) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 30 June 2009 | 542 | 5,056 | 817 | 53 | 6,468 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Accumulated depreciation and impairment | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2007 | 180 | 292 | 449 | - | 921 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Charge for the year | 113 | 660 | 172 | 3 | 948 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Eliminated on disposals | (21) | (9) | (1) | - | (31) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 1 July 2008 | 272 | 943 | 620 | 3 | 1,838 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Charge for the year | 119 | 967 | 118 | 20 | 1,224 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Impairment loss | 62 | 986 | 7 | 14 | 1,069 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Eliminated on disposals | (56) | (1) | (654) | (6) | (717) |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 30 June 2009 | 397 | 2,895 | 91 | 31 | 3,414 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| Carrying amount | | | | | |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 30 June 2008 | 189 | 3,484 | 284 | 19 | 3,976 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
| At 30 June 2009 | 145 | 2,161 | 726 | 22 | 3,054 |
+---------------------------------------------+-----------+------------+------------+------------+--------+
As a result of the decision to refocus the monoclonal manufacturing resource
towards more targeted, lower level production, an impairment loss of GBP1.1m
(2008: GBPnil) has been recognised in the year relating to tangible assets
associated with the higher volume production processes which will not now be
implemented.
19. Investments
The Company's subsidiaries at 30 June 2009 and 2008 are:
+-----------------------------------------------------------+---------------+------------+------------+
| | | Proportion | Proportion |
| | | | |
+-----------------------------------------------------------+---------------+------------+------------+
| | Country | of | of |
| | of | shares | voting |
+-----------------------------------------------------------+---------------+------------+------------+
| | incorporation | held | power |
| | | | held |
+-----------------------------------------------------------+---------------+------------+------------+
| Abcam Inc | USA | 100% | 100% |
+-----------------------------------------------------------+---------------+------------+------------+
| Abcam KK | Japan | 100% | 100% |
+-----------------------------------------------------------+---------------+------------+------------+
| Camgene | UK | 100% | 100% |
+-----------------------------------------------------------+---------------+------------+------------+
Abcam Inc and Abcam KK are involved in the sale and distribution of antibodies
and related products. Camgene is dormant.
Analysis of changes in investments:
+----------------------------------------------------------------------------+----------+
| | GBP000 |
+----------------------------------------------------------------------------+----------+
| At 1 July 2008 | 45 |
+----------------------------------------------------------------------------+----------+
| Additions | 60 |
+----------------------------------------------------------------------------+----------+
| At 30 June 2009 | 105 |
+----------------------------------------------------------------------------+----------+
Investments are held at cost less provision for impairment. All additions
represent share based payment charges for share options issued by the Company to
employees of the subsidiaries.
20. Inventories
+-----------------------------------------------------+----------+----------+----------+----------+
| | Group | Company |
+-----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Goods for resale | 6,796 | 4,506 | 6,783 | 4,501 |
+-----------------------------------------------------+----------+----------+----------+----------+
21. Financial assets
Trade and other receivables
+-----------------------------------------------------+----------+----------+----------+----------+
| | Group | Company |
+-----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Amounts receivable for the sale of goods | 5,685 | 4,288 | 2,614 | 2,470 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Allowance for doubtful debts | (305) | (591) | (115) | (413) |
+-----------------------------------------------------+----------+----------+----------+----------+
| | 5,380 | 3,697 | 2,499 | 2,057 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Amounts owed by subsidiary undertakings | - | - | 3,332 | 2,169 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Other debtors | 516 | 499 | 277 | 292 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Prepayments | 590 | 664 | 471 | 626 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | 6,486 | 4,860 | 6,579 | 5,144 |
+-----------------------------------------------------+----------+----------+----------+----------+
Trade receivables
The average credit period taken for sales is 32.0 days (2008: 34.4 days). No
interest has been charged on the receivables. Trade receivables are provided for
based on estimated irrecoverable amounts determined by reference to past default
experience. The Group and Company have provided fully for all receivables over
120 days because historical experience is such that receivables that are past
due beyond 120 days are generally not recoverable. Trade receivables between 30
days and 120 days are provided for based on estimated irrecoverable amounts from
the sale of goods determined by reference to past default experience.
Credit limits for each customer are reviewed on a monthly basis. No customer
represents more than 5% of the total balance of trade receivables.
The analysis below shows the balances included in debtors which are past due at
the reporting date for which the Group or Company has not provided as there has
not been a significant change in credit quality and the amounts are still
considered recoverable.
Ageing of past due but not impaired receivables:
+-----------------------------------------------------+----------+----------+----------+----------+
| | Group | Company |
+-----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| 0-30 days overdue | 938 | 242 | 434 | 111 |
+-----------------------------------------------------+----------+----------+----------+----------+
| 30-60 days overdue | 90 | 48 | - | 48 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Total | 1,028 | 290 | 434 | 159 |
+-----------------------------------------------------+----------+----------+----------+----------+
During the prior year the Group formalised and improved the credit control
procedures. This has resulted in a noticeable improvement in the ageing of the
debtors of the past two years.
Movement in the allowance for doubtful debts:
+----------------------------------------------------+----------+----------+----------+----------+
| | Group | Company |
+----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------------------+----------+----------+----------+----------+
| Balance at the beginning of the year | (591) | (224) | (413) | (198) |
+----------------------------------------------------+----------+----------+----------+----------+
| Impairment gains/(losses) recognised through | 84 | (367) | 17 | (215) |
| income statement | | | | |
+----------------------------------------------------+----------+----------+----------+----------+
| Exchange differences on translation of foreign | (39) | - | - | - |
| operations | | | | |
+----------------------------------------------------+----------+----------+----------+----------+
| Amounts written off as uncollectable | 241 | - | 281 | - |
+----------------------------------------------------+----------+----------+----------+----------+
| Balance at the end of the year | (305) | (591) | (115) | (413) |
+----------------------------------------------------+----------+----------+----------+----------+
In determining the recoverability of a trade receivable the Group and Company
consider any change in the credit quality of the receivable from the date credit
was initially granted up to the reporting date. The concentration of credit risk
is limited due to the customer base being large and unrelated. Accordingly, the
Directors believe that there is no further credit provision required in excess
of the allowance for doubtful debts.
Included in the allowance for doubtful debts are no individually impaired trade
receivables (2008: GBP289,000) relating to companies in financial difficulties.
The impairment recognised in the prior year represents the difference between
the carrying amount of these trade receivables and the present value of the
expected litigation proceeds. Neither the Group nor the Company holds collateral
over these balances. The balances were written off as uncollectable within the
year ended 30 June 2009.
Ageing of impaired receivables:
+---------------------------------------------------------------------+----------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+----------+----------+
| 0-30 days overdue | 99 | - |
+---------------------------------------------------------------------+----------+----------+
| 30-60 days overdue | 155 | - |
+---------------------------------------------------------------------+----------+----------+
| 60-90 days overdue | 35 | 38 |
+---------------------------------------------------------------------+----------+----------+
| >90 days overdue | 16 | 553 |
+---------------------------------------------------------------------+----------+----------+
| Total | 305 | 591 |
+---------------------------------------------------------------------+----------+----------+
The Directors consider that the carrying amount of trade and other receivables
approximates their fair value.
Cash and cash equivalents, and short term deposits
+-----------------------------------------------------+----------+----------+----------+----------+
| | Group | Company |
+-----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents, and short term deposits | 25,501 | 14,493 | 24,090 | 12,938 |
+-----------------------------------------------------+----------+----------+----------+----------+
Cash and cash equivalents and short term deposits comprise cash held by the
Group or Company and short-term deposits with an original maturity of three
months or less. The carrying amount of these assets approximates their fair
value.
22. Derivative financial instruments
Group and Company
+---------------------------------------------------------------------+----------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+----------+----------+
| Derivatives which mature within one year: | | |
+---------------------------------------------------------------------+----------+----------+
| | | |
+---------------------------------------------------------------------+----------+----------+
| Derivatives that are designated and effective as hedging | | |
| instruments carried at fair value | | |
+---------------------------------------------------------------------+----------+----------+
| Forward exchange contracts | 970 | - |
+---------------------------------------------------------------------+----------+----------+
| | | |
+---------------------------------------------------------------------+----------+----------+
| Derivatives carried at fair value through profit and loss | | |
+---------------------------------------------------------------------+----------+----------+
| Forward exchange contracts that are not designated in hedge | 368 | (197) |
| accounting relationships | | |
+---------------------------------------------------------------------+----------+----------+
| | 1,338 | (197) |
+---------------------------------------------------------------------+----------+----------+
| Derivatives which mature after more than one year: | | |
+---------------------------------------------------------------------+----------+----------+
| | | |
+---------------------------------------------------------------------+----------+----------+
| Derivatives that are designated and effective as hedging | | |
| instruments carried at fair value | | |
+---------------------------------------------------------------------+----------+----------+
| Forward exchange contracts | 326 | - |
+---------------------------------------------------------------------+----------+----------+
| | 1,664 | (197) |
+---------------------------------------------------------------------+----------+----------+
Further details of derivative financial instruments are provided in note 25.
23. Deferred tax
The following are the major deferred tax liabilities and assets recognised by
the Group and Company and movements thereon during the current and prior
reporting period.
Group
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | Accelerated | | Share | Other | |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | tax | Cash | based | timing | |
| | | flow | | | |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | depreciation | hedges | payment | differences | Total |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| At 1 July 2007 | (549) | - | 306 | 55 | (188) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| (Charge)/credit to income | (332) | - | (224) | 126 | (430) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| Credit to equity | - | - | 540 | - | 540 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| At 30 June 2008 | (881) | - | 622 | 181 | (78) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| Credit/(charge) to income | 481 | - | 135 | (89) | 527 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| (Charge)/credit to equity | (1) | (363) | 222 | 28 | (114) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| At 30 June 2009 | (401) | (363) | 979 | 120 | 335 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
Company
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | Accelerated | | Share | Other | |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | tax | Cash | based | timing | |
| | | flow | | | |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | depreciation | hedges | payment | differences | Total |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| At 1 July 2007 | (549) | - | 306 | 55 | (188) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| (Charge)/credit to income | (338) | - | 54 | 54 | (230) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| Credit to equity | - | - | 240 | - | 240 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| At 30 June 2008 | (887) | - | 600 | 109 | (178) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| Credit/(charge) to income | 534 | - | 113 | (119) | 528 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| (Charge)/credit to equity | - | (363) | 172 | - | (191) |
+----------------------------------------+--------------+---------+---------+-------------+---------+
| At 30 June 2009 | (353) | (363) | 885 | (10) | 159 |
+----------------------------------------+--------------+---------+---------+-------------+---------+
At the balance sheet date, the aggregate amount of temporary differences
associated with undistributable earnings of subsidiaries for which a deferred
tax liability has not been recognised is GBP1,210,000 (2008: GBP1,028,000). No
liability has been recognised in respect of these differences because the Group
is in a position to control the timing of the reversal of temporary differences
and it is probable that such differences will not reverse in the foreseeable
future.
24. Other financial liabilities
Trade and other payables
+-----------------------------------------------------+----------+-----------+----------+-----------+
| | Group | Company |
+-----------------------------------------------------+----------------------+----------------------+
| | | 30/06/08 | | 30/06/08 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| | 30/06/09 | restated* | 30/06/09 | restated* |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Amounts falling due within one year | | | | |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Trade payables | 1,703 | 1,992 | 1,502 | 1,783 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Amounts owed to subsidiary undertakings | - | - | 218 | 95 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Accruals and deferred income | 4,603 | 1,742 | 4,128 | 1,439 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Deferred creditor | 57 | 86 | 57 | 86 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Other taxes and social security | 241 | 160 | 226 | 159 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Other creditors | 90 | 189 | 62 | 157 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| | 6,694 | 4,169 | 6,193 | 3,719 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Amounts falling due after more than one year | | | | |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| Deferred creditor | 83 | 109 | 83 | 109 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
| | 6,777 | 4,278 | 6,276 | 3,828 |
+-----------------------------------------------------+----------+-----------+----------+-----------+
* restated for the adoption of IFRIC 13 as per note 2.
Trade creditors and accruals principally comprise amounts outstanding for trade
purchases and ongoing costs. The average credit period taken for trade purchases
is 19 days (2008: 17 days). Most suppliers do not charge interest for the first
60 days of the invoice. The Group has financial risk management policies in
place to ensure that all payables are paid within the credit time frame. The
Directors consider that the carrying amount of trade and other payables
approximates to their fair value.
The deferred creditor represents the earn-out payable on sales of products under
a distribution agreement.
25. Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able
to continue as going concerns whilst maximising the return to stakeholders. The
capital structure of the Group consists of cash and cash equivalents and equity
attributable to the equity holders of the parent, comprising issued capital,
reserves and retained earnings.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including
the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised in respect of each class of financial asset,
financial liability and equity instrument are disclosed in note 3. Foreign
exchange contracts are measured using quoted forward exchange rates and the
yield curves derived from quoted interest rates matching maturities of these
contracts.
Categories of financial instruments
+-----------------------------------------------------+----------+----------+----------+----------+
| | Group carrying | Company |
| | value | carrying value |
+-----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Financial assets | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Loans and receivables | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Amounts owed by subsidiary undertakings | - | - | 3,332 | 2,033 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Trade receivables | 5,380 | 3,697 | 2,499 | 2,057 |
+-----------------------------------------------------+----------+----------+----------+----------+
| VAT recoverable (included in other debtors) | 290 | 234 | 224 | 234 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | 5,670 | 3,931 | 6,055 | 4,324 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents and short-term deposits | 25,501 | 14,493 | 24,090 | 12,938 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Loans and receivables (including cash and cash | 31,171 | 18,424 | 30,145 | 17,262 |
| equivalents) | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Financial liabilities | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Other financial liabilities at amortised cost | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Trade and other payables | (6,694) | (4,169) | (6,193) | (3,719) |
+-----------------------------------------------------+----------+----------+----------+----------+
| Current tax liabilities | (1,871) | (382) | (1,784) | (269) |
+-----------------------------------------------------+----------+----------+----------+----------+
| Non-current deferred creditor | (83) | (109) | (83) | (109) |
+-----------------------------------------------------+----------+----------+----------+----------+
| Amortised cost | (8,648) | (4,660) | (8,060) | (4,097) |
+-----------------------------------------------------+----------+----------+----------+----------+
The Directors consider there to be no material difference between the book value
and the fair value of the Group's financial assets and liabilities at the
balance sheet date. This is because most of the financial assets and liabilities
are short term.
Risk in relation to the use of financial instruments
Credit risk
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group or the Company.
Trade receivables consist of a large number of customers spread across diverse
geographical areas. The Group does not have a significant credit risk exposure
to any single counterparty. Ongoing credit evaluation is performed on the
financial condition of accounts receivable and consideration is given as to
whether there is any impairment in the value of any amounts owing.
The standard payment terms for receivables other than intragroup balances are 30
days. Any variation in these terms requires authorisation by senior management.
Year end debtor days are 32.0 days (2008: 34.4 days). All overdue debts are
provided for where collectability is considered doubtful or the value of the
debt is impaired. Objective evidence of impairment could include the Group's
past experience of collecting payments, an increase in the number of delayed
payments in the portfolio past the average credit period of 32.0 days, as well
as observable changes in international or local economic conditions.
The standard payment terms for intragroup receivables are 45 days. There is not
considered to be any risk of impairment of these receivables unless the
financial assets of the entity holding the corresponding liability are impaired.
The credit risk on liquid funds and derivative financial instruments is limited
because the counterparties are banks with high credit-ratings assigned by
international credit-rating agencies. Funds are split between at least two
institutions.
Market risk
The Group's activities expose it primarily to the financial risks of changes in
foreign currency exchange rates and interest rates. The Group enters into
forward exchange contracts to hedge the exchange rate risk arising on the sales
of goods and services denominated in Dollars and Euros.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies. The
Group's policy is to maintain natural hedges where possible, by matching foreign
currency revenue and expenditure. Exchange rate exposures are managed within
approved policy parameters utilising forward exchange contracts.
The carrying amounts of the Group's foreign currency denominated monetary assets
and liabilities at the reporting date are as follows:
+-----------------------------------------------------+----------+----------+----------+----------+
| | Liabilities | Assets |
+-----------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Euros | (211) | (79) | 1,882 | 1,655 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Dollars | (1,459) | (821) | 3,447 | 3,886 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Yen | (39) | (17) | 490 | 539 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | (1,709) | (917) | 5,819 | 6,080 |
+-----------------------------------------------------+----------+----------+----------+----------+
Foreign currency sensitivity analysis
The Group's principal functional currency is Sterling. The Group is mainly
exposed to Dollars and Euros but has an increasing exposure to Japanese Yen. The
following table demonstrates the Group's sensitivity to an 8% increase and
decrease in the Sterling exchange rate against the relevant foreign currencies
on the Group's profit before tax and equity (due to the fair value of monetary
assets, liabilities and forward exchange contracts outstanding as at 30 June
2009). 8% is considered by management to be a reasonably possible change in
foreign exchange rates after giving consideration to changes in exchange rates
over the last 12 months. A positive number indicates an increase in profit or
equity.
+---------------+--------+--------+---------+--------+---------+--------+
| | Yen currency | Euro currency | Dollar currency |
| | impact | impact | impact |
+---------------+-----------------+------------------+------------------+
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
+---------------+--------+--------+---------+--------+---------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+--------+--------+---------+--------+---------+--------+
| Effect | | | | | | |
| of an 8% | | | | | | |
| strengthening | | | | | | |
| in relevant | | | | | | |
| exchange rate | | | | | | |
| on: | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
| Profit | - | (39) | 94 | 323 | 68 | (73) |
| or loss | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
| Other | 176 | - | 1,163 | - | 907 | - |
| equity | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
| | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
| Effect | | | | | | |
| of an 8% | | | | | | |
| weakening | | | | | | |
| in | | | | | | |
| relevant | | | | | | |
| exchange | | | | | | |
| rate on: | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
| Profit | - | 45 | (111) | 65 | (80) | 70 |
| or loss | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
| Other | (167) | - | (1,365) | - | (1,064) | - |
| equity | | | | | | |
+---------------+--------+--------+---------+--------+---------+--------+
In management's opinion, the sensitivity analysis is representative of the
inherent foreign exchange risk at year end.
Forward exchange contracts
It is the policy of the Group to enter into forward exchange contracts to manage
the risk associated with anticipated sales transactions out to 15 months within
30% to 80% of the exposure generated. Upon maturity of a forward exchange
contract, the Group may enter into a new contract designated as a separate
hedging relationship.
Foreign currency forward contracts are measured using quoted forward exchange
rates and the yield curves derived from quoted interest rates matching
maturities of the contracts.
The following table details the forward exchange contracts outstanding as at the
year end:
+-----------------------------------------------------+----------+------------+----------+----------+
| | | Foreign | Contract | Fair |
| | | | | |
+-----------------------------------------------------+----------+------------+----------+----------+
| | Average | currency | value | value |
+-----------------------------------------------------+----------+------------+----------+----------+
| Outstanding contracts | rate | 30/06/09 | 30/06/09 | 30/06/09 |
+-----------------------------------------------------+----------+------------+----------+----------+
| | 30/06/09 | 000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+------------+----------+----------+
| Sell Dollars | | | | |
+-----------------------------------------------------+----------+------------+----------+----------+
| Less than 3 months | 1.49 | $2,600 | 1,749 | 168 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 3 to 6 months | 1.49 | $5,300 | 3,558 | 333 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 7 to 12 months | 1.50 | $8,000 | 5,324 | 451 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 13 to 15 months | 1.51 | $4,200 | 2,781 | 220 |
+-----------------------------------------------------+----------+------------+----------+----------+
| | 1.50 | $20,100 | 13,412 | 1,172 |
+-----------------------------------------------------+----------+------------+----------+----------+
| Sell Euros | | | | |
+-----------------------------------------------------+----------+------------+----------+----------+
| Less than 3 months | 1.14 | EUR2,200 | 1,932 | 58 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 3 to 6 months | 1.14 | EUR4,200 | 3,687 | 107 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 7 to 12 months | 1.14 | EUR7,800 | 6,862 | 209 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 13 to 15 months | 1.14 | EUR4,200 | 3,692 | 104 |
+-----------------------------------------------------+----------+------------+----------+----------+
| | 1.14 | EUR18,400 | 16,173 | 478 |
+-----------------------------------------------------+----------+------------+----------+----------+
| Sell Yen | | | | |
+-----------------------------------------------------+----------+------------+----------+----------+
| Less than 3 months | 157.47 | JPY50,000 | 318 | 2 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 3 to 6 months | 157.28 | JPY100,000 | 636 | 4 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 7 to 12 months | 156.84 | JPY150,000 | 956 | 6 |
+-----------------------------------------------------+----------+------------+----------+----------+
| 13 to 15 months | 156.30 | JPY75,000 | 480 | 2 |
+-----------------------------------------------------+----------+------------+----------+----------+
| | 156.93 | JPY375,000 | 2,390 | 14 |
+-----------------------------------------------------+----------+------------+----------+----------+
| Total of outstanding forward contracts | | | 31,975 | 1,664 |
+-----------------------------------------------------+----------+------------+----------+----------+
+-----------------------------------------------------+----------+----------+----------+----------+
| | | Foreign | Contract | Fair |
| | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| | Average | currency | value | value |
+-----------------------------------------------------+----------+----------+----------+----------+
| Outstanding contracts | rate | 30/06/08 | 30/06/08 | 30/06/08 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | 30/06/08 | 000 | GBP000 | GBP000 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Sell Dollars | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Less than 3 months | 1.97 | $1,200 | 608 | 3 |
+-----------------------------------------------------+----------+----------+----------+----------+
| 3 to 6 months | 1.96 | $2,400 | 1,222 | 2 |
+-----------------------------------------------------+----------+----------+----------+----------+
| 7 to 12 months | 1.94 | $600 | 309 | 2 |
+-----------------------------------------------------+----------+----------+----------+----------+
| | 1.96 | $4,200 | 2,139 | 7 |
+-----------------------------------------------------+----------+----------+----------+----------+
| Sell Euros | | | | |
+-----------------------------------------------------+----------+----------+----------+----------+
| Less than 3 months | 1.33 | EUR1,700 | 1,278 | (70) |
+-----------------------------------------------------+----------+----------+----------+----------+
| 3 to 6 months | 1.34 | EUR2,800 | 2,088 | (134) |
+-----------------------------------------------------+----------+----------+----------+----------+
| | 1.34 | EUR4,500 | 3,366 | (204) |
+-----------------------------------------------------+----------+----------+----------+----------+
| Total of outstanding forward contracts | | | 5,505 | (197) |
+-----------------------------------------------------+----------+----------+----------+----------+
At 30 June 2009, the fair value of contracts held as cash flow hedges is
GBP1,296,000. The remaining contracts are not held as cash flow hedges. At 30
June 2008, none of the contracts were held as cash flow hedges.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which has built an appropriate liquidity risk management framework
for the management of the Group's short-, medium- and long-term funding and
liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves and banking facilities by continuously monitoring
cash flows and matching the maturity profiles of financial assets and
liabilities.
The Group and Company hold cash deposits at call or with a maturity of up to 12
months. At 30 June 2009, the average maturity of balances was 47 days (2008: 35
days) of fixed rate deposits not sensitive to changes in interest rates. All
funds are readily available to the Company to meet operational requirements.
The amount owing from subsidiaries is payable on demand and is classified as
being payable within 1 month. Trade payables are normally payable within 30 days
of invoice.
Liquidity and interest risk tables - financial liabilities
All balances are capital and do not include accrued interest.
+---------------------------------------------+----------+---------+--------+--------+---------+
| | Weighted | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | average | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | interest | On | 1 to 3 | 3 | |
| | | demand | | months | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | rate | 1 | months | to 1 | Total |
| | | month | | year | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | % | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Group | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| 2009 | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Trade payables | - | (1,604) | (82) | (17) | (1,703) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Accruals and deferred income | - | (3,725) | (196) | (682) | (4,603) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | | (5,329) | (278) | (699) | (6,306) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Company | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| 2009 | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Trade payables | - | (1,403) | (82) | (17) | (1,502) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Accruals and deferred income | - | (3,367) | (133) | (628) | (4,128) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | | (4,770) | (215) | (645) | (5,630) |
+---------------------------------------------+----------+---------+--------+--------+---------+
+---------------------------------------------+----------+---------+--------+--------+---------+
| | Weighted | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | average | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | interest | On | 1 to 3 | 3 | |
| | | demand | | months | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | rate | 1 | months | to 1 | Total |
| | | month | | year | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | % | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Group | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| 2008 | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Trade payables | - | (1,961) | (25) | (6) | (1,992) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Accruals and deferred income | - | (1,268) | - | (474) | (1,742) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | | (3,229) | (25) | (480) | (3,734) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Company | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| 2008 | | | | | |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Trade payables | - | (1,758) | (25) | - | (1,783) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| Accruals and deferred income | - | (1,021) | - | (418) | (1,439) |
+---------------------------------------------+----------+---------+--------+--------+---------+
| | | (2,779) | (25) | (418) | (3,222) |
+---------------------------------------------+----------+---------+--------+--------+---------+
Interest rate risk sensitivity analysis
An increase of 1% in the average interest rate during the year would have
resulted in an increase in interest received by the Group of GBP376,000 (2008:
GBP113,000) and by the Company of GBP369,000 (2008: GBP103,000). A decrease of
1% in the average interest rate during the year would have resulted in a
reduction in interest received by the Group of GBP136,000 (2008: GBP113,000) and
by the Company of GBP113,000 (2008: GBP103,000). There would have been no effect
on equity reserves.
The closing cash balance at the year end has been used as the basis for the
calculations. A 1% increase or decrease in interest rates represents
management's assessment of the reasonably possible change in interest rates.
26. Share Capital
Group and Company
+---------------------------------------------------------------------+----------+----------+
| | 30/06/09 | 30/06/08 |
+---------------------------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+---------------------------------------------------------------------+----------+----------+
| Authorised: | | |
+---------------------------------------------------------------------+----------+----------+
| 100,000,000 ordinary shares of 1p each | 1,000 | 1,000 |
+---------------------------------------------------------------------+----------+----------+
| Issued and fully paid: | | |
+---------------------------------------------------------------------+----------+----------+
| 35,525,450 (2008: 35,066,781) ordinary shares of 1p each | 355 | 351 |
+---------------------------------------------------------------------+----------+----------+
The movement during the year on the Company's issued and fully paid shares was
as follows:
+----------------------------------------------------------+------------+----------+----------+
| | 2009 | 2009 | 2008 |
+----------------------------------------------------------+------------+----------+----------+
| | Number | GBP000 | GBP000 |
+----------------------------------------------------------+------------+----------+----------+
| Balance at beginning of year | 35,066,781 | 351 | 346 |
+----------------------------------------------------------+------------+----------+----------+
| Issue of share capital | 458,669 | 4 | 5 |
+----------------------------------------------------------+------------+----------+----------+
| Balance at end of year | 35,525,450 | 355 | 351 |
+----------------------------------------------------------+------------+----------+----------+
The Company has one class of ordinary shares which carry no right to fixed
income.
During the year the Company issued 1p ordinary shares as follows:
+----------------------------------------------------------+----------+----------+----------+
| | | Exercise | Total |
| | | | |
+----------------------------------------------------------+----------+----------+----------+
| | Number | price | paid |
+----------------------------------------------------------+----------+----------+----------+
| Date issued | of | p | GBP |
| | shares | | |
+----------------------------------------------------------+----------+----------+----------+
| July 2008 | 2,382 | 224.00 | 5,336 |
+----------------------------------------------------------+----------+----------+----------+
| September 2008 | 60,800 | 25.00 | 15,200 |
+----------------------------------------------------------+----------+----------+----------+
| September 2008 | 32,000 | 50.00 | 16,000 |
+----------------------------------------------------------+----------+----------+----------+
| September 2008 | 10,280 | 62.50 | 6,425 |
+----------------------------------------------------------+----------+----------+----------+
| October 2008 | 1,200 | 12.50 | 150 |
+----------------------------------------------------------+----------+----------+----------+
| October 2008 | 80,000 | 25.00 | 20,000 |
+----------------------------------------------------------+----------+----------+----------+
| October 2008 | 28,440 | 62.50 | 17,775 |
+----------------------------------------------------------+----------+----------+----------+
| October 2008 | 545 | 224.00 | 1,121 |
+----------------------------------------------------------+----------+----------+----------+
| October 2008 | 6,525* | 451.00 | 29,428 |
+----------------------------------------------------------+----------+----------+----------+
| November 2008 | 59,410* | 462.00 | 274,474 |
+----------------------------------------------------------+----------+----------+----------+
| November 2008 | 1,344* | 485.00 | 6,518 |
+----------------------------------------------------------+----------+----------+----------+
| November 2008 | 42,500 | 62.50 | 26,563 |
+----------------------------------------------------------+----------+----------+----------+
| November 2008 | 40,000 | 125.00 | 50,000 |
+----------------------------------------------------------+----------+----------+----------+
| January 2009 | 440* | 470.00 | 2,068 |
+----------------------------------------------------------+----------+----------+----------+
| February 2009 | 407* | 492.00 | 2,002 |
+----------------------------------------------------------+----------+----------+----------+
| March 2009 | 348* | 570.00 | 1,984 |
+----------------------------------------------------------+----------+----------+----------+
| April 2009 | 10,000 | 25.00 | 2,500 |
+----------------------------------------------------------+----------+----------+----------+
| April 2009 | 16,320 | 62.50 | 10,200 |
+----------------------------------------------------------+----------+----------+----------+
| April 2009 | 615 | 280.00 | 1,722 |
+----------------------------------------------------------+----------+----------+----------+
| April 2009 | 6,100 | 312.00 | 19,032 |
+----------------------------------------------------------+----------+----------+----------+
| April 2009 | 150 | 462.00 | 693 |
+----------------------------------------------------------+----------+----------+----------+
| May 2009 | 3,020 | 62.50 | 1,888 |
+----------------------------------------------------------+----------+----------+----------+
| May 2008 | 15,996 | 280.00 | 44,789 |
+----------------------------------------------------------+----------+----------+----------+
| May 2008 | 28,180 | 312.00 | 87,922 |
+----------------------------------------------------------+----------+----------+----------+
| May 2008 | 8,550 | 462.00 | 39,501 |
+----------------------------------------------------------+----------+----------+----------+
| June 2008 | 1,465 | 224.00 | 3,282 |
+----------------------------------------------------------+----------+----------+----------+
| June 2008 | 902 | 280.00 | 2,526 |
+----------------------------------------------------------+----------+----------+----------+
| June 2008 | 750 | 312.00 | 2,340 |
+----------------------------------------------------------+----------+----------+----------+
| | 458,669 | | 691,439 |
+----------------------------------------------------------+----------+----------+----------+
*new shares issued and held by the Employee Benefit Trust to satisfy the
Company's obligations under the Free Shares and Matching Shares elements of the
SIP.
Further details of the Company's share option schemes are provided in note 31.
27. Share premium
Group and Company
+----------------------------------------------------------------------------+----------+
| | GBP000 |
+----------------------------------------------------------------------------+----------+
| Balance at 1 July 2007 | 10,619 |
+----------------------------------------------------------------------------+----------+
| Premium arising on issue of equity shares | 252 |
+----------------------------------------------------------------------------+----------+
| Balance at 1 July 2008 | 10,871 |
+----------------------------------------------------------------------------+----------+
| Premium arising on issue of equity shares | 687 |
+----------------------------------------------------------------------------+----------+
| Balance at 30 June 2009 | 11,558 |
+----------------------------------------------------------------------------+----------+
There were no costs of issue incurred during the year or the previous year.
28. Own shares
Group and Company
+----------------------------------------------------------------------------+----------+
| | GBP000 |
+----------------------------------------------------------------------------+----------+
| Balance at 1 July 2007 and 1 July 2008 | - |
+----------------------------------------------------------------------------+----------+
| Acquired in the period | (316) |
+----------------------------------------------------------------------------+----------+
| Disposed of on exercise of options | 15 |
+----------------------------------------------------------------------------+----------+
| Balance at 30 June 2009 | (301) |
+----------------------------------------------------------------------------+----------+
This balance represents the cost of 65,094 shares in Abcam plc (2008: nil) which
were issued by the Company at market value and held by the Abcam Employee Share
Benefit Trust. These shares have been purchased in order to satisfy the Free
Shares and Matching Shares elements of the various share based compensation
plans. See note 31 for further details of these schemes.
29. Retained earnings and other reserves
Group
+-------------------+-------------+--------------+----------+----------+----------+---------+
| | | Share-based | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| | Translation | compensation | Hedging | Deferred | Retained | |
| | | | | tax | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| | reserve1 | reserve2 | reserve3 | reserve4 | earnings | Total |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Balance | (36) | 251 | 168 | 256 | 7,283 | 7,922 |
| as at 1 | | | | | | |
| July | | | | | | |
| 2007 | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Exchange | | | | | | |
| differences | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| on | 3 | - | - | - | - | 3 |
| translation | | | | | | |
| of foreign | | | | | | |
| operations | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Share | - | 232 | - | - | - | 232 |
| based | | | | | | |
| compensation | | | | | | |
| charge | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Deferred | - | - | - | 502 | - | 502 |
| tax | | | | | | |
| asset | | | | | | |
| recognised | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Profit | - | - | - | - | 5,890 | 5,890 |
| for the | | | | | | |
| year | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Utilisation | - | - | (168) | - | - | (168) |
| of | | | | | | |
| derivative | | | | | | |
| instruments | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Payment | - | - | - | - | (1,481) | (1,481) |
| of | | | | | | |
| dividends | | | | | | |
| (note 15) | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Balance | (33) | 483 | - | 758 | 11,692 | 12,900 |
| as at 1 | | | | | | |
| July | | | | | | |
| 2008 | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Exchange | | | | | | |
| differences | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| on | 230 | 15 | - | - | - | 245 |
| translation | | | | | | |
| of foreign | | | | | | |
| operations | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Share | - | 464 | - | - | - | 464 |
| based | | | | | | |
| compensation | | | | | | |
| charge | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Deferred | - | - | (363) | 610 | - | 247 |
| tax | | | | | | |
| (liability)/asset | | | | | | |
| recognised | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Profit | - | - | - | - | 12,291 | 12,291 |
| for the | | | | | | |
| year | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Own | - | - | - | - | (15) | (15) |
| shares | | | | | | |
| disposed | | | | | | |
| of on | | | | | | |
| exercise | | | | | | |
| of | | | | | | |
| options | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Increase | - | - | 1,296 | - | - | 1,296 |
| in fair | | | | | | |
| value of | | | | | | |
| hedging | | | | | | |
| derivatives | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Payment | - | - | - | - | (2,572) | (2,572) |
| of | | | | | | |
| dividends | | | | | | |
| (note 15) | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
| Balance | 197 | 962 | 933 | 1,368 | 21,396 | 24,856 |
| as at 30 | | | | | | |
| June | | | | | | |
| 2009 | | | | | | |
+-------------------+-------------+--------------+----------+----------+----------+---------+
1 Exchange differences on translation of overseas operations.
2 IFRS 2 charge for fair value of share options.
3 Gains and losses recognised on cash flow hedges.
4 Portion of deferred tax asset arising on outstanding share options and share
options exercised and not taken to profit and loss in accordance with IAS12.
Company
+--------------------------------------------+--------------+----------+----------+----------+---------+
| | Share-based | | | | |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| | compensation | Hedging | Deferred | Retained | |
| | | | tax | | |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| | reserve1 | reserve2 | reserve3 | earnings | Total |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Balance as at 1 July 2007 | 251 | 168 | 256 | 6,654 | 7,329 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Share based compensation charge | 164 | - | - | - | 164 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Share based compensation charge recognised | 29 | - | - | - | 29 |
| on behalf of subsidiaries | | | | | |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Deferred tax asset recognised | - | - | 502 | - | 502 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Profit for the year | - | - | - | 5,126 | 5,126 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Utilisation of derivative instruments | - | (168) | - | - | (168) |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Payment of dividends (note 15) | - | - | - | (1,481) | (1,481) |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Receipt of dividends | - | - | - | 403 | 403 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Balance as at 1 July 2008 | 444 | - | 758 | 10,702 | 11,904 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Share based compensation charge | 404 | - | - | - | 404 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Share based compensation charge recognised | 60 | - | - | - | 60 |
| on behalf of subsidiaries | | | | | |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Deferred tax (liability)/asset recognised | - | (363) | 438 | - | 75 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Profit for the year | - | - | - | 11,484 | 11,484 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Own shares disposed of on exercise of | - | - | - | (15) | (15) |
| options | | | | | |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Increase in fair value of hedging | - | 1,296 | - | - | 1,296 |
| derivatives | | | | | |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Payment of dividends (note 15) | - | - | - | (2,572) | (2,572) |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Receipt of dividends | - | - | - | 918 | 918 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
| Balance as at 30 June 2009 | 908 | 933 | 1,196 | 20,517 | 23,554 |
+--------------------------------------------+--------------+----------+----------+----------+---------+
1 IFRS 2 charge for fair value of share options.
2 Gains and losses recognised on cash flow hedges.
3 Portion of deferred tax asset arising on outstanding share options and share
options exercised and not taken to profit and loss in accordance with IAS12.
30. Notes to the cash flow statement
+------------------------------------------------------+----------+----------+----------+----------+
| | Group | Company |
+------------------------------------------------------+---------------------+---------------------+
| | 30/06/09 | 30/06/08 | 30/06/09 | 30/06/08 |
+------------------------------------------------------+----------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------------------------+----------+----------+----------+----------+
| Operating profit for the year | 15,872 | 7,371 | 14,514 | 6,113 |
+------------------------------------------------------+----------+----------+----------+----------+
| Adjustments for: | | | | |
+------------------------------------------------------+----------+----------+----------+----------+
| Depreciation of property, plant and equipment | 1,417 | 1,092 | 1,224 | 917 |
+------------------------------------------------------+----------+----------+----------+----------+
| Impairment losses on property, plant and equipment | 1,074 | - | 1,069 | - |
+------------------------------------------------------+----------+----------+----------+----------+
| Loss on disposal of property, plant and equipment | 160 | - | 156 | - |
+------------------------------------------------------+----------+----------+----------+----------+
| Amortisation of intangible assets | 261 | 309 | 261 | 306 |
+------------------------------------------------------+----------+----------+----------+----------+
| Impairment losses on intangible assets | 201 | 642 | 201 | 642 |
+------------------------------------------------------+----------+----------+----------+----------+
| Change in fair value of derivatives outstanding at | (565) | 197 | (565) | 197 |
| year end | | | | |
+------------------------------------------------------+----------+----------+----------+----------+
| Share based compensation charge | 464 | 232 | 404 | 192 |
+------------------------------------------------------+----------+----------+----------+----------+
| Operating cash flows before movements in working | 18,884 | 9,843 | 17,264 | 8,367 |
| capital | | | | |
+------------------------------------------------------+----------+----------+----------+----------+
| Increase in inventories | (2,289) | (1,405) | (2,282) | (1,412) |
+------------------------------------------------------+----------+----------+----------+----------+
| Increase in receivables | (1,263) | (533) | (1,393) | (572) |
+------------------------------------------------------+----------+----------+----------+----------+
| Increase in payables | 2,1821 | 772 | 2,1441 | 503 |
| | | | | |
+------------------------------------------------------+----------+----------+----------+----------+
| Cash generated by operations | 17,514 | 8,677 | 15,733 | 6,886 |
+------------------------------------------------------+----------+----------+----------+----------+
| Income taxes paid | (2,702) | (1,535) | (2,198) | (1,028) |
+------------------------------------------------------+----------+----------+----------+----------+
| Net cash inflow from operating activities | 14,812 | 7,142 | 13,535 | 5,858 |
+------------------------------------------------------+----------+----------+----------+----------+
1 This increase in payables includes GBP1.0m of the total balance of GBP1.1m
received as an incentive from the landlord of premises leased by Abcam plc with
effect from December 2008.
31. Share based payments
Equity-settled share option scheme
The Company operates a number of share option schemes for certain employees of
the Group. The share based compensation charge is made up from option awards
from the EMI plan, Unapproved share option plan, the US employees share option
plan, the Abcam 2005 Share Option scheme, the SAYE scheme, the Long Term
Incentive Plan ('LTIP') and the Share Incentive Plan ('SIP'). Option grants
under each scheme have been aggregated.
Some grants under the SAYE scheme vest from one to five years. Those options
with performance criteria vest when the criteria are met. The vesting period for
all other options is from one to three years. If the options remain unexercised
after a period of ten years from the date of grant the options expire. Options
are forfeited if the employee leaves the Group before the options vest.
The volatility of the options is based on the long term average volatility in
the share price of five quoted companies that are considered to have a
reasonable comparability with Abcam plc. The dividend yield is based on Abcam's
actual dividend yield in the past.
The risk free rate is the yield on UK Government Gilts at each date of
grant. The employee exercise multiple is based on published statistics for a
portfolio of companies. The employee exit rate is based on management's
expectations and, in accordance with IFRS 2, is applied after vesting.
The Group recorded a total share based expense of GBP464,000 in the year (2008:
GBP192,000), of which GBP374,000 (2008: GBP173,000) was included within
administration and management expenses and GBP90,000 (2008: GBP19,000) was
included within research and development expenses.
Summary of all schemes, excluding SIP and LTIP
Options outstanding as at 30 June 2009 had an exercise price of between 12.50p
and 462.00p (2008: 10.00p and 413.00p). The weighted average remaining
contractual life is 7.46 years (2008: 8.12 years). The weighted average fair
value of the options outstanding at the end of the year was 65.56p (2008:
65.24p). The Group recorded total share based expenses of GBP272,000 (2008:
GBP192,000) relating to all schemes excluding the SIP and LTIP.
+------------------------------------------------+-----------+-----------+-----------+----------+
| | 2009 | Weighted | 2008 | Weighted |
+------------------------------------------------+-----------+-----------+-----------+----------+
| | No. of | average | No. of | average |
+------------------------------------------------+-----------+-----------+-----------+----------+
| | share | exercise | share | exercise |
| | | price | | price |
+------------------------------------------------+-----------+-----------+-----------+----------+
| | options | p | options | p |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Outstanding at beginning of year | 1,389,012 | 219.99 | 1,568,335 | 156.03 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Granted during the year | 181,021 | 462.00 | 544,875 | 316.10 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Forfeited during the year | (46,936) | 340.70 | (280,801) | 233.24 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Exercised during the year | (390,195) | 97.65 | (443,397) | 57.96 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Outstanding at the end of the year | 1,132,902 | 232.31 | 1,389,012 | 219.99 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Exercisable at end of year | 150,080 | 109.16 | 302,640 | 43.07 |
+------------------------------------------------+-----------+-----------+-----------+----------+
Enterprise management incentive ('EMI') scheme
+------------------------------------------------+-----------+-----------+-----------+----------+
| | 2009 | Weighted | 2008 | Weighted |
+------------------------------------------------+-----------+-----------+-----------+----------+
| | No. of | average | No. of | average |
+------------------------------------------------+-----------+-----------+-----------+----------+
| | share | exercise | share | exercise |
| | | price | | price |
+------------------------------------------------+-----------+-----------+-----------+----------+
| | options | p | options | p |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Outstanding at beginning of year | 833,528 | 206.94 | 966,191 | 131.51 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Granted during the year | - | - | 284,851 | 312.00 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Forfeited during the year | (27,274) | 298.69 | (90,177) | 161.41 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Exercised during the year | (290,706) | 81.20 | (327,337) | 53.80 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Outstanding at the end of the year | 515,548 | 272.78 | 833,528 | 206.94 |
+------------------------------------------------+-----------+-----------+-----------+----------+
| Exercisable at end of year | 50,080 | 47.59 | 262,640 | 40.11 |
+------------------------------------------------+-----------+-----------+-----------+----------+
The growth in the net assets of the Group means that the Group has exceeded the
limits set by HMRC for the tax incentives available under the EMI scheme so no
further grants can be made under this scheme.
Unapproved share option scheme
+------------------------------------------------+----------+-----------+-----------+----------+
| | 2009 | Weighted | 2008 | Weighted |
+------------------------------------------------+----------+-----------+-----------+----------+
| | No. of | average | No. of | average |
+------------------------------------------------+----------+-----------+-----------+----------+
| | share | exercise | share | exercise |
| | | price | | price |
+------------------------------------------------+----------+-----------+-----------+----------+
| | options | p | options | p |
+------------------------------------------------+----------+-----------+-----------+----------+
| Outstanding at beginning of year | 354,909 | 223.66 | 427,504 | 194.71 |
+------------------------------------------------+----------+-----------+-----------+----------+
| Granted during the year | - | - | 148,338 | 340.30 |
+------------------------------------------------+----------+-----------+-----------+----------+
| Forfeited during the year | - | - | (137,375) | 288.34 |
+------------------------------------------------+----------+-----------+-----------+----------+
| Exercised during the year | (86,397) | 109.91 | (83,558) | 71.76 |
+------------------------------------------------+----------+-----------+-----------+----------+
| Outstanding at the end of the year | 268,512 | 260.26 | 354,909 | 223.66 |
+------------------------------------------------+----------+-----------+-----------+----------+
| Exercisable at end of year | 100,000 | 140.00 | 40,000 | 62.50 |
+------------------------------------------------+----------+-----------+-----------+----------+
Abcam Inc share scheme
+------------------------------------------------+---------+-----------+-----------+----------+
| | 2009 | Weighted | 2008 | Weighted |
+------------------------------------------------+---------+-----------+-----------+----------+
| | No. of | average | No. of | average |
+------------------------------------------------+---------+-----------+-----------+----------+
| | share | exercise | share | exercise |
| | | price | | price |
+------------------------------------------------+---------+-----------+-----------+----------+
| | options | p | options | p |
+------------------------------------------------+---------+-----------+-----------+----------+
| Outstanding at beginning of year | 121,712 | 291.47 | 104,207 | 185.56 |
+------------------------------------------------+---------+-----------+-----------+----------+
| Granted during the year | - | - | 81,160 | 312.00 |
+------------------------------------------------+---------+-----------+-----------+----------+
| Forfeited during the year | (3,921) | 593.65 | (32,735) | 312.00 |
+------------------------------------------------+---------+-----------+-----------+----------+
| Exercised during the year | - | - | (30,920) | 56.33 |
+------------------------------------------------+---------+-----------+-----------+----------+
| Outstanding at the end of the year | 117,791 | 315.15 | 121,712 | 291.47 |
+------------------------------------------------+---------+-----------+-----------+----------+
| Exercisable at end of year | - | - | - | - |
+------------------------------------------------+---------+-----------+-----------+----------+
SAYE scheme
+------------------------------------------------+---------+-----------+----------+----------+
| | 2009 | Weighted | 2008 | Weighted |
+------------------------------------------------+---------+-----------+----------+----------+
| | No. of | average | No. of | average |
+------------------------------------------------+---------+-----------+----------+----------+
| | share | exercise | share | exercise |
| | | price | | price |
+------------------------------------------------+---------+-----------+----------+----------+
| | options | p | options | p |
+------------------------------------------------+---------+-----------+----------+----------+
| Outstanding at beginning of year | 78,863 | 231.11 | 70,433 | 224.00 |
+------------------------------------------------+---------+-----------+----------+----------+
| Granted during the year | - | - | 30,526 | 249.00 |
+------------------------------------------------+---------+-----------+----------+----------+
| Forfeited during the year | (7,465) | 226.84 | (20,514) | 233.86 |
+------------------------------------------------+---------+-----------+----------+----------+
| Exercised during the year | (4,392) | 224.00 | (1,582) | 224.00 |
+------------------------------------------------+---------+-----------+----------+----------+
| Outstanding at the end of the year | 67,006 | 232.05 | 78,863 | 231.11 |
+------------------------------------------------+---------+-----------+----------+----------+
| Exercisable at end of year | - | - | - | - |
+------------------------------------------------+---------+-----------+----------+----------+
The Abcam 2005 share option scheme
+-------------------------------------------------------------------+----------+----------+
| | 2009 | Weighted |
+-------------------------------------------------------------------+----------+----------+
| | No. of | average |
+-------------------------------------------------------------------+----------+----------+
| | share | exercise |
| | | price |
+-------------------------------------------------------------------+----------+----------+
| | options | p |
+-------------------------------------------------------------------+----------+----------+
| Outstanding at beginning of year | - | - |
+-------------------------------------------------------------------+----------+----------+
| Granted during the year | 181,021 | 462.00 |
+-------------------------------------------------------------------+----------+----------+
| Forfeited during the year | (8,276) | 462.00 |
+-------------------------------------------------------------------+----------+----------+
| Exercised during the year | (8,700) | 462.00 |
+-------------------------------------------------------------------+----------+----------+
| Outstanding at the end of the year | 164,045 | 462.00 |
+-------------------------------------------------------------------+----------+----------+
| Exercisable at end of year | - | - |
+-------------------------------------------------------------------+----------+----------+
Fair value calculation
The fair value of the option schemes, other than those options with market based
performance criteria, has been calculated using the Trinomial method. The inputs
into the Trinomial model are as follows:
EMI scheme
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Grant date | 16/06/03 | 16/06/03 | 05/07/04 | 17/12/04 | 27/05/05 | 05/09/05 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Share price at grant-pence | 10 | 10 | 25 | 30 | 62.5 | 62.5 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Fair value at valuation date-pence | 2.6 | 2.6 | 8.5 | 12.3 | 19.2 | 19.1 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Exercise price-pence | 25 | 37.5 | 25 | 25 | 62.5 | 62.5 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Expected volatility | 40% | 40% | 35% | 35% | 30% | 30% |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Expected life-years | 3 | 3.08 | 2 | 2.88 | 2 | 2 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Expected dividend yield | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Risk free rate | 3.97% | 3.97% | 5.08% | 4.49% | 4.31% | 4.15% |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Employee exercise multiple | 2 | 2 | 2 | 2 | 2 | 2 |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
| Employee exit rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
+--------------------------------------------+----------+----------+----------+----------+----------+----------+
Unapproved scheme
+--------------------------------------------+----------+----------+----------+----------+----------+
| Grant date | 20/12/04 | 20/12/04 | 30/09/05 | 30/09/05 | 27/10/05 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Share price at grant-pence | 30 | 30 | 62.5 | 62.5 | 167 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Fair value at valuation date-pence | 11.2 | 11.6 | 18.9 | 10.2 | 55.77 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Exercise price-pence | 25 | 25 | 62.5 | 125 | 150 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Expected volatility | 35% | 35% | 30% | 30% | 30% |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Expected life-years | 1.54 | 2 | 1.82 | 1.82 | 1.635 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Expected dividend yield | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Risk free rate | 4.46% | 4.46% | 4.29% | 4.29% | 4.40% |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Employee exercise multiple | 2 | 2 | 2 | 2 | 2 |
+--------------------------------------------+----------+----------+----------+----------+----------+
| Employee exit rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
+--------------------------------------------+----------+----------+----------+----------+----------+
SAYE scheme
+----------------------------------------------------+----------+----------+----------+----------+
| Grant date | 02/10/06 | 02/10/06 | 08/11/07 | 08/11/07 |
+----------------------------------------------------+----------+----------+----------+----------+
| Share price at grant-pence | 280 | 280 | 312 | 312 |
+----------------------------------------------------+----------+----------+----------+----------+
| Fair value at valuation date-pence | 104 | 113 | 106 | 122 |
+----------------------------------------------------+----------+----------+----------+----------+
| Exercise price-pence | 224 | 224 | 249 | 249 |
+----------------------------------------------------+----------+----------+----------+----------+
| Expected volatility | 30% | 30% | 30% | 30% |
+----------------------------------------------------+----------+----------+----------+----------+
| Expected life-years | 3 | 5 | 3 | 5 |
+----------------------------------------------------+----------+----------+----------+----------+
| Expected dividend yield | 1.1% | 1.1% | 1.5% | 1.5% |
+----------------------------------------------------+----------+----------+----------+----------+
| Risk free rate | 4.54% | 4.54% | 4.80% | 4.80% |
+----------------------------------------------------+----------+----------+----------+----------+
| Employee exercise multiple | 2 | 2 | 2 | 2 |
+----------------------------------------------------+----------+----------+----------+----------+
| Employee exit rate | 10.00% | 10.00% | 12.00% | 12.00% |
+----------------------------------------------------+----------+----------+----------+----------+
The fair value of options issued after September 2006, with market based
performance criteria, are calculated using the Monte Carlo model. The inputs
into the Monte Carlo model are as follows:
+----------------------------------------------------+----------+----------+----------+----------+
| Grant date | 07/09/06 | 08/11/07 | 07/05/08 | 06/11/08 |
+----------------------------------------------------+----------+----------+----------+----------+
| Share price at grant-pence | 280 | 312 | 413 | 462.5 |
+----------------------------------------------------+----------+----------+----------+----------+
| Fair value at valuation date-pence | 84 | 89 | 123 | 115 |
+----------------------------------------------------+----------+----------+----------+----------+
| Exercise price-pence | 280 | 312 | 413 | 462 |
+----------------------------------------------------+----------+----------+----------+----------+
| Expected volatility | 30% | 30% | 30% | 24% |
+----------------------------------------------------+----------+----------+----------+----------+
| Expected life-years | 3 | 3.01 | 3 | 3 |
+----------------------------------------------------+----------+----------+----------+----------+
| Expected dividend yield | 1.1% | 1.5% | 1.5% | 0.87% |
+----------------------------------------------------+----------+----------+----------+----------+
| Risk free rate | 4.57% | 4.80% | 4.79% | 3.90% |
+----------------------------------------------------+----------+----------+----------+----------+
| Employee exercise multiple | 2 | 2 | 2 | 2 |
+----------------------------------------------------+----------+----------+----------+----------+
| Employee exit rate | 9.53% | 12.00% | 12.00% | 0.00% |
+----------------------------------------------------+----------+----------+----------+----------+
Share Incentive Plan
All UK based employees are eligible to participate in the SIP whereby employees
buy shares in the Company. These shares are called Partnership Shares and are
held in trust on behalf of the employee. For every Partnership Share bought by
the employee the Company will give the employee one share free of charge
(Matching Shares), provided the employee remains employed by the Company for a
period of at least three years. The employees must take their shares out of the
plan on leaving the Company and will not be entitled to the Matching Shares if
they leave within three years of buying the Partnership Shares. In addition, the
Company can also award employees the right to acquire up to a maximum of
GBP3,000 of shares (Free Shares). There are no vesting conditions attached to
the Free Shares, other than being continuously employed by the Company for three
years from the date of grant.
+------------------------------------------------------------------+-----------+--------------+
| | SIP Free | SIP Matching |
+------------------------------------------------------------------+-----------+--------------+
| | Shares | Shares |
+------------------------------------------------------------------+-----------+--------------+
| Outstanding at beginning of year | - | - |
+------------------------------------------------------------------+-----------+--------------+
| Granted during the year | 59,410 | 10,271 |
+------------------------------------------------------------------+-----------+--------------+
| Forfeited during the year | (2,244) | - |
+------------------------------------------------------------------+-----------+--------------+
| Exercised during the year | (2,982) | (398) |
+------------------------------------------------------------------+-----------+--------------+
| Outstanding at the end of the year | 54,184 | 9,873 |
+------------------------------------------------------------------+-----------+--------------+
| Exercisable at end of year | - | - |
+------------------------------------------------------------------+-----------+--------------+
For the purposes of IFRS 2 the fair value of these Matching Shares and Free
Shares is determined as the market value of the shares at the date of grant. No
valuation model is required to calculate the fair value of awards under the SIP.
The fair value of an equity based payment under the SIP is the face value of the
award on the date of grant because the participants are entitled to receive the
full value of the shares and there are no market based performance conditions
attached to the awards.
The Group recognised a total expense of GBP68,000 (2008: GBPnil) related to
Matching and Free Share awards in the year.
Long Term Incentive Plan
In 2008 the Company approved a new LTIP. Vesting of performance share awards
made under this scheme is conditional upon achievement of two separate
performance conditions. Full details of the performance conditions are shown in
the Directors' Remuneration Report. All awards made under this scheme have a
fixed term of three years. Save as permitted in the LTIP rules, awards lapse on
an employee leaving the Company.
Details of performance share awards outstanding during the year are as follows:
+----------------------------------------------------------------------------+----------+
| | LTIP |
| | awards |
+----------------------------------------------------------------------------+----------+
| | 2009 |
+----------------------------------------------------------------------------+----------+
| Granted during the year and outstanding at the end of the year | 154,545 |
+----------------------------------------------------------------------------+----------+
| Exercisable at end of year | - |
+----------------------------------------------------------------------------+----------+
These performance share awards were made on 6 November 2008. The aggregate of
the fair values of the awards made on that date is GBP573,000. The estimated
fair values were calculated using a stochastic (Monte Carlo binomial) model. The
inputs to the model for awards granted in the year were as follows:
+----------------------------------------------------------------------------+----------+
| Grant date | 06/11/08 |
+----------------------------------------------------------------------------+----------+
| Weighted average exercise price (pence) | - |
+----------------------------------------------------------------------------+----------+
| Expected volatility | 24% |
+----------------------------------------------------------------------------+----------+
| Expected life | 3 years |
+----------------------------------------------------------------------------+----------+
| Expected dividend yield | 0.87% |
+----------------------------------------------------------------------------+----------+
| Risk free rate | 3.41% |
+----------------------------------------------------------------------------+----------+
The Group recognised a total expense of GBP124,000 (2008: GBPnil) related to
performance share awards under the LTIP in the year.
32. Retirement benefit schemes
Defined contribution schemes
The UK-based employees of the Company have the option to be members of a defined
contribution pension scheme managed by a third party pension provider. For each
employee who is a member of the scheme the Company will contribute a fixed
percentage of each employee's salary to the scheme. The only obligation of the
Group with respect to this scheme is to make the specified contributions.
The employees of the Group's subsidiaries in the USA and Japan are members of
state-managed retirement benefit schemes operated by the governments of the USA
and Japan respectively. The subsidiaries are required to contribute a specified
percentage of payroll costs to the retirement benefit schemes to fund the
benefits. The only obligation of the Group with respect to the retirement
benefit schemes is to make the specified contributions.
The total cost charged to the income statement in respect of these schemes
during the year ended 30 June 2009 was GBP947,000 (2008: GBP815,000). As at 30
June 2009 contributions of GBP75,000 (2008: GBP65,000) due in respect of the
current reporting period had not been paid over to the schemes.
33. Related party transactions
Under a new product development agreement with a laboratory associated with Tony
Kouzarides (a non-executive director of the Company), Abcam provided products
from its catalogue free of charge, with a resale value of GBP24,018 (2008:
GBP16,714) and paid GBP41,166 in royalties (2008: GBP36,148). GBP5,889 relating
to these royalties was outstanding at the year end (2008: GBP6,632).
Abcam Plc purchased services with a value of GBP51,050 (2008: GBP6,000) from
Cambridge Network Limited and its subsidiaries, which are non-profit making
entities of which David Cleevely (Chairman of the Company) is chairman. GBP7,912
was prepaid at the end of the year (2008: GBPnil). These services were purchased
at the market value.
Remuneration of key personnel
The remuneration of the executive directors, who are the key management
personnel of the Group, is set out below in aggregate for each of the categories
specified in IAS 24 - Related Party Disclosures.
Group and Company
+-------------------------------------------------------------------+----------+----------+
| | 30/06/09 | 30/06/08 |
+-------------------------------------------------------------------+----------+----------+
| | GBP000 | GBP000 |
+-------------------------------------------------------------------+----------+----------+
| Short term employee benefits and fees | 1,078 | 1,033 |
+-------------------------------------------------------------------+----------+----------+
| Share based payment | 153 | 50 |
+-------------------------------------------------------------------+----------+----------+
| | 1,231 | 1,083 |
+-------------------------------------------------------------------+----------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUUPABUPBGRM
|