TIDMEDEN
RNS Number : 8661K
Eden Research plc
27 September 2016
Eden Research plc
("Eden" or "the Company")
Half-year Report
Eden Research plc (AIM: EDEN), the AIM listed company that
provides breakthrough natural microencapsulation technologies to
the global agrochemicals, animal health and consumer products
industries, announces its interim results for the six months ended
30 June 2016.
Business highlights
Commercial:
-- First commercial sales of lead agrochemical product, 3AEY, in Kenya, Greece, Spain and Italy
-- Sales development progressing in-line with expectations with
market demand being realised by Eden's partners through the
botrytis application season (late August and September)
-- Appointment of Strategic Commercial Advisor (plant protection)
-- Appointment of Regulatory Strategy Advisor (plant protection)
Regulatory:
-- EU approval received for Eden's first agrochemical, fungicide
product, 3AEY, in Southern Europe in Spain, Italy and Bulgaria
-- Further national-level authorisations expected to follow in
France and Portugal in time for 2017 growing season
-- Label extensions in Greece and Spain for new crops and disease targets
-- Label extensions received in Kenya now include authorisation for the treatment of roses
Financial highlights
-- Placing of GBP2.6m (gross) in March 2016
-- Revenue for the period of GBP0.11m (H1 2015: GBP0.16m)
-- Operating Loss for the period was GBP0.86m (H1 2015: loss of
GBP0.70m), GBP0.45m excluding the non-cash items, amortisation and
share based payments (H1 2015: loss of GBP0.31m). Administrative
expenses of GBP0.55m (H1 2015: GBP0.47m)
-- Cash and cash equivalents at 30 June 2016 of GBP2.01m (at 30 June 2015: GBP0.1m)
-- Expanding investment in regulatory clearances unlocking
commercial potential in new, important territories
-- Cash outflow increase (H1, 2016: GBP0.60m, H1, 2015:
GBP0.33m) due to rise in creditor payments
Sean Smith, Chief Executive Officer of Eden, said:
"So far this year, we have seen the first significant commercial
sales of 3AEY into the agrochemicals market in Kenya, Greece, Italy
and Spain. Whilst the botrytis season is not quite over and, as
such, we don't have final sales quantities from our commercial
partners for this season, Eden and its partners are very pleased
with the sales that have been generated so far. Particularly in
Italy where our partner, Sipcam Italia SpA, has invested a
significant amount of resource into the commercial launch of
"3logy", the brand name they have chosen for 3AEY in that
region.
"For our nematicide product, negotiations are continuing with a
multi-national industry leader, and progress has been made towards
a satisfactory conclusion. A final agreement is expected this year
covering multiple territories around the world, subject to further
negotiations. A number of evaluation projects for both Eden's
technologies and products are on-going and I am pleased with the
progress that is generally being made, as well as with regulatory
progress where territories such as the USA are now being actively
pursued.
"I am also pleased to welcome two new people to the team at
Eden. Michel Villeneuve has joined as Senior Strategic Commercial
Advisor. Michel has over thirty years' experience in a variety of
senior commercial, regulatory and management roles with major
multinational companies involved in plant protection. Peter Watson
has been appointed as Regulatory Strategy Advisor. Peter has worked
for the UK's Chemicals Regulation Directorate and Dow Chemical in a
number of senior regulatory roles. Both gentlemen bring tremendous
experience, insight and drive to our efforts to accelerate
commercialisation of our first products.
"I look forward to providing shareholders with a more
comprehensive update on 3AEY sales and other commercial progress in
due course."
Enquiries:
Eden Research plc www.edenresearch.com
Sean Smith, Chief Executive Officer Tel: 01285 359 555
Alex Abrey, Chief Financial Officer
Shore Capital and Corporate Limited www.shorecap.com
Stephane Auton/Patrick Castle Tel: 020 7408 4090
Walbrook PR Ltd Tel: 020 7933 8780 or eden@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
Eden Research plc
Consolidated Statement of Comprehensive Income for the six months
ended 30 June 2016
Six
Six months
months ended Year ended
ended 30 30 June 31 December
June 2016 2015 2015
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Group Revenue 109 160 883
----------- ----------- -------------
Cost of sales (11) - (99)
----------- ----------- -------------
Gross profit 98 160 784
----------- ----------- -------------
Administrative expenses (550) (472) (1,020)
Amortisation of intangible assets (337) (335) (655)
Share based payments (note 8) (73) (52) (248)
----------- ----------- -------------
Total other operating expenses (960) (859) (1,923)
Operating loss (862) (699) (1,139)
Finance income/(costs) 2 (20) (20)
----------- ----------- -------------
Loss on ordinary activities before
taxation (860) (719) (1,159)
Tax on loss on ordinary activities 82 101 101
----------- ----------- -------------
Loss for the financial period (778) (618) (1,058)
Other Comprehensive Income net
of tax - - -
Total Comprehensive Income since
last Report (778) (618) (1,058)
Loss per share (pence) - basic
and diluted (note 5) (0.44) (0.40) (0.68)
Eden Research plc
Consolidated Statement of Financial Position as at 30 June
2016
30 June 2016 30 June 2015 31 Dec 2015
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
ASSETS
NON-CURRENT ASSETS
Intangible assets (note
6) 5,290 5,621 5,543
Investments in associates
(note7) 923 - 923
6,213 5,621 6,466
CURRENT ASSETS
Trade and other receivables 238 48 164
Cash and cash equivalents 2,007 136 148
2,245 184 312
TOTAL ASSETS 8,458 5,805 6,778
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 598 428 752
TOTAL CURRENT LIABILITIES 598 428 752
TOTAL LIABILITIES 598 428 752
EQUITY
Called up share capital 1,847 1,541 1,588
Share premium account 29,140 26,014 26,861
Merger reserve 10,210 10,210 10,210
Warrant reserve 808 539 735
Retained earnings (34,145) (32,927) (33,367)
TOTAL EQUITY attributable
to owners of the parent 7,860 5,377 6,027
TOTAL EQUITY AND LIABILITIES 8,458 5,805 6,779
Eden Research plc
Statement of Changes in Equity as at 30 June 2016
Share Share Merger Warrant Retained Total
capital premium reserve reserve earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Six months ended 30 June
2016
Balance at 1 January 2016 1,588 26,861 10,210 735 (33,367) 6,027
Loss and total comprehensive
income - - - - (778) (778)
Transactions with owners
- Share issue 259 2,279 - - - 2,538
- Options granted - - - 73 - 73
- Options exercised/lapsed - - - - - -
--------- --------- --------- --------- ---------- --------
Transactions with owners - - - - - -
--------- --------- --------- --------- ---------- --------
Balance at 30 June 2016 1,847 29,140 10,210 808 (34,145) 7,860
--------- --------- --------- --------- ---------- --------
Six months ended 30 June
2015
Balance at 1 January 2015 1,541 26,014 10,210 524 (32,346) 5,943
Loss and total comprehensive
income - - - - (618) (618)
Transactions with owners
- Options granted - - - 52 - 52
- Options exercised/lapsed - - - (37) 37 -
--------- --------- --------- --------- ---------- --------
Transactions with owners - - - 15 (15) -
--------- --------- --------- --------- ---------- --------
Balance at 30 June 2015 1,541 26,014 10,210 539 (32,927) 5,377
--------- --------- --------- --------- ---------- --------
Eden Research plc
Statement of cash flows for the six months ended 30 June
2016
Six months Six months
Year ended
ended ended 31
30 June 30 June December
2016 2015 2015
GBP '000 GBP '000 GBP '000
unaudited unaudited audited
Cash flows from operating activities
Cash outflow from operations (598) (327) (186)
Tax credit received - 101 101
Net finance charges paid - (20) (20)
----------- ----------- -----------
Net cash used in operating
activities (598) (246) (105)
Cash flows from investing activities
Capitalisation of development
expenditure (83) (33) (132)
Finance income 2 - -
----------- ----------- -----------
Net cash used in investing
activities (81) (33) (132)
----------- ----------- -----------
Cash flows from financing activities
Share issue costs (131) - (30)
Issue of equity shares 2,669 - -
----------- ----------- -----------
Net cash from financing activities 2,538 - (30)
----------- ----------- -----------
Increase/(decrease) in cash
and cash equivalents 1,859 (279) (267)
Cash and cash equivalents at
beginning of period 148 415 415
----------- ----------- -----------
Cash and cash equivalents at
end of period 2,007 136 148
=========== =========== ===========
Cash and cash equivalents comprise bank account balances.
Notes to the Interim Results
1. The above numbers have not been reviewed by the Company's auditors.
2. Nature of operations and general information
Eden is an early stage revenue company with intellectual
property and expertise in encapsulation, terpenes and
environmentally friendly technologies to provide naturally
occurring solutions to the global agrochemicals industry, the
animal health industry, and consumer products. Revenues are earned
by the Company through identifying suitable industrial partners and
entering into licence or distribution agreements.
The financial information set out in this interim report does
not constitute statutory accounts. The Company's statutory
financial statements for the year ended 31 December 2015 are
available from the Company's website. The auditor's report on those
financial statements was unqualified.
3. Accounting Policies
Basis of Preparation
These interim condensed consolidated financial statements are
for the six months ended 30 June 2016. They have been prepared
following the recognition and measurement principles of IFRS. They
do not include all of the information required for full annual
financial statements, and should be read in conjunction with the
financial statements of the Company for the year ended 31 December
2015.
These financial statements have been prepared on the going
concern basis and under the historical cost convention.
These condensed consolidated interim financial statements have
been prepared in accordance with the accounting policies adopted in
the last annual financial statements for the year to 31 December
2015.
The accounting policies have been applied consistently for the
purposes of preparation of these condensed interim financial
statements.
4. Copies of the interim statement are available from the
Company at its registered office, as well as on the Company's
website.
5. Loss per share
Six months Six months
ended ended Year ended
30 June 30 June 2015 31 December
2016 GBP '000 2015
GBP '000 unaudited GBP '000
unaudited audited
Loss per ordinary share (pence)
- basic and diluted (0.44) (0.40) (0.68)
=========== ============== =============
Loss per share has been calculated on the net basis on the loss
after tax of GBP0.78m (30 June 2015: loss GBP0.62m, 31 December
2015: GBP1.06m) using the weighted average number of ordinary
shares in issue of 178,432,719 (30 June 2015: 154,142,880, 31
December 2015: 155,685,557).
Due to the loss for the period there is no dilution of the loss
per share arising from options in existence.
6. Intangible assets
Intellectual Licences Development Total
property and trademarks Costs
GBP GBP GBP GBP
COST
At 1 January 2015 8,592 447 2,980 12,019
Additions - - 32 32
------------- ---------------- ------------ -------
At 30 June 2015 8,592 447 3,012 12,051
Additions 65 - 177 242
------------- ---------------- ------------ -------
At 31 December 2015 8,657 447 3,189 12,293
Additions - - 83 83
------------- ---------------- ------------ -------
At 30 June 2016 8,657 447 3,272 12,376
============= ================ ============ =======
AMORTISATION
At 1 January 2015 4,692 353 1,050 6,095
Charge for the period 220 18 97 335
------------- ---------------- ------------ -------
At 30 June 2015 4,912 371 1,147 6,430
Charge for the period 220 (3) 103 321
------------- ---------------- ------------ -------
At 31 December 2015 5,132 369 1,250 6,750
Charge for the period 219 9 108 336
------------- ---------------- ------------ -------
At 30 June 2016 5,351 377 1,358 7,086
============= ================ ============ =======
CARRYING AMOUNT
At 30 June 2016 3,306 70 1,914 5,290
============= ================ ============ =======
At 31 December 2015 3,525 79 1,939 5,543
============= ================ ============ =======
At 30 June 2015 3,680 76 1,865 5,621
============= ================ ============ =======
7. Investments in associates
Details of the Company's associates are as follows:
Name Principal activity Country of Proportion
incorporation of ownership
interest and
voting power
held
%
Development and
sale of biocide England and
TerpeneTech Limited products Wales 29.9
The investment in associates is stated at cost.
8. Share based payments
Share Options
Eden Research plc operates an unapproved option scheme for
executive directors, senior management and certain employees.
Six months ended 30 June Six months ended 30
2016 June 2015
Weighted Weighted
average average
exercise exercise
price (pence) Number price (pence) Number
Outstanding at the
beginning
of the period 12 6,255,000 12 4,650,000
Granted during the
period 13 1,050,000 8 625,000
Exercised during the
period 13 (530,000) - -
Lapsed during the period 13 (2,750,000) 18 (200,000)
10 4,025,000 12 5,075,000
The exercise price of options outstanding at the end of the
period ranged between 8p and 13p (30 June 2015: 8p and 18p) and
their weighted average contractual life was 1.9 years (30 June
2015: 1.8 years). None of the options have vesting conditions.
The weighted average share price (at the date of exercise) of
options that lapsed during the period was 13p (30 June 2015:
18p).
The share based payment charge for the period was GBP73,300 (30
June 2015: GBP51,524).
Warrants
Six months ended 30 June Six months ended 30
2016 June 2015
Weighted Weighted
average average
exercise exercise
price (pence) Number price (pence) Number
Outstanding at the
beginning
of the period 14 5,497,867 13 3,340,000
Granted during the
period - - 15 1,387,867
14 5,497,867 14 4,727,867
The exercise price of warrants outstanding at the end of the
period ranged between 11p and 30p (30 June 2015: 11p and 30p) and
their weighted average contractual life was 2.6 years (30 June
2015: 3.6 years).
The weighted average share price (at the date of exercise) of
warrants that lapsed during the period was nil (30 June 2015:
nil).
Other notes:
Eden is an early stage revenue company with intellectual
property and expertise in encapsulation, terpenes and
environmentally friendly technologies to provide naturally
occurring solutions to the global agrochemicals industry, the
animal health industry, and consumer products.
Eden's encapsulation technology harnesses the biocidal efficacy
of naturally occurring chemicals produced by plants (terpenes) and
can also be used with both natural and synthetic hydrophobic
compounds. The technology uses yeast cells that are a by-product of
numerous commercial production processes to deliver a slow release
of natural compounds for agricultural and non-agricultural uses.
Terpenes are already widely used in the food flavouring, cosmetic
and pharmaceutical industries.
Historically, terpenes have had limited commercial use in the
agrochemical sector due to their volatility, phytotoxicity and poor
solubility. Eden's platform encapsulation technology provides a
unique, environmentally friendly solution to these problems and
enables terpenes to be used as effective, low-risk
agrochemicals.
With leading consultants in their respective fields, the Company
is developing these technologies through innovative research and a
series of commercial production, marketing and distribution
partnerships.
The Company has a number of patents and a pipeline of products
at differing stages of development targeting specific areas of the
global agrochemicals industry. To date, the Company has invested in
the region of GBP12m in developing and protecting its intellectual
property and seeking regulatory approval for products that rely
upon the Company's technologies. Revenues earned by the Company
have been modest whilst the Company has concentrated on securing
patent protection for its intellectual property, gaining regulatory
approvals, identifying suitable industrial partners, and entering
into licence agreements.
In May 2013, the three actives that comprise Eden's first
commercial product, 3AEY, were approved as new ingredients for use
in plant protection products. This represents a major milestone in
the commercialisation of Eden's technology and is a significant
accomplishment for any company. To illustrate this point, one
should note that in all of 2013, Eden's approvals represented three
of only ten new active ingredients approved by the EC.
3AEY has been authorised for sale in Kenya, Malta, Greece,
Bulgaria, Spain and Italy.
Eden was admitted to trading on AIM on 11 May 2012 and trades
under the symbol EDEN.
For more information about Eden, please visit:
www.edenresearch.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SELFMMFMSEEU
(END) Dow Jones Newswires
September 27, 2016 02:00 ET (06:00 GMT)
Eden Research (LSE:EDEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Eden Research (LSE:EDEN)
Historical Stock Chart
From Apr 2023 to Apr 2024