TIDMLPX
RNS Number : 9270S
Lipoxen PLC
20 September 2010
+-----------------------------------+-----------------------------------+
| For Immediate Release | 20 September 2010 |
+-----------------------------------+-----------------------------------+
Lipoxen PLC
("Lipoxen" or "the Company")
Interim Results for the six months ended 30 June 2010
Lipoxen PLC (AIM:LPX), a bio-pharmaceutical company specialising in the
development of high-value differentiated biologicals, vaccines and siRNA
delivery, is pleased to announce its interim results for the six months ended 30
June 2010.
Key Programme Highlights
· Successful progress with Baxter PSA-Factor VIII programme - update
announced 16th September
· Lipoxen Receives US$2m License Fee Payment
· Baxter Issued Warrants to Subscribe for up to US$2m Equity
· Baxter Selects Lead Polymer Polysialic Acid (PSA)-Factor VIII Candidate
· Baxter Granted Right to Appoint NED to Lipoxen's Board
· FDA/EMEA regulated Indian Phase II trial of ErepoXen by Lipoxen's partner
Serum Institute progressing well - final trial report expected by end of 2010
· SuliXen (insulin) programme remains on track - Phase II to commence in Q4
2010
· Influenza vaccine viable candidate preparing to enter pre-clinical
development in early 2011
· Intellectual Property
· Patents granted for Polysialylated G-CSF StimuXen(TM) Technology in six
European territories, including the UK, Germany, France, Spain, Italy and
Switzerland
· New US patent granted for PolyXen technology
Key Financial Highlights
· GBP1.23m Placing completed in April cornerstoned by management
· Management options plan implemented in June vesting substantially above
market thus aligning interests with shareholders
· Turnover of GBP76k (2009: GBP0.4m)
· Pre-tax loss of GBP1.5m (2009: GBP1.4m)
· Net cash at period end of GBP0.9m (2009: GBP2.8m)
· Net asset value at 30 June 2010 GBP2.0m - net of GBP0.4m JSOP shares value
(2009: GBP4.3m)
· Loss per share basic and fully diluted of 0.94p (2009: 1.14p)
· Net asset value per share - basic 1.12p (2009: 2.78p)
· Net asset value per share - fully diluted 1.11p (2009: 2.69p)
Commenting on the results, Sir Brian Richards, Chairman of Lipoxen, said:
"The Board remains excited about the prospects for the Company and has evidenced
this confidence by subscribing material sums in the last two fundraisings. The
prospects for value delivery are such that, of the total executive directors'
new equity incentives, 60% have vesting hurdle prices set in three equal
tranches, of, respectively 20p, 40p and GBP1 . The executives' interests are
therefore truly aligned with those of all of the Company's shareholders.
"I look forward to updating shareholders when the Company reports upon its full
FY2010 results."
- Ends -
For further information, please contact:
Enquiries
+------------------------------------------+--------------------+
| Lipoxen plc | +44 (0)20 7389 |
| | 5015 |
+------------------------------------------+--------------------+
| M. Scott Maguire, Chief Executive | |
| Officer | |
+------------------------------------------+--------------------+
| | |
+------------------------------------------+--------------------+
| Singer Capital Markets (nominated | +44 (0)20 3205 |
| adviser) | 7500 |
+------------------------------------------+--------------------+
| Jeff Keating / Claes Spång | |
+------------------------------------------+--------------------+
| | |
+------------------------------------------+--------------------+
| Buchanan Communications | +44 (0)20 7466 |
| Lisa Baderoon | 5000 |
| | Mobile: +44 |
| | 7721 413496 |
+------------------------------------------+--------------------+
| Jessica Fontaine | |
| | |
+------------------------------------------+--------------------+
| | |
+------------------------------------------+--------------------+
CHAIRMAN'S STATEMENT
I am delighted once more to have the opportunity of updating you on the
Company's progress since my last report accompanying the FY2009 Financial
Statements issued on 31st March 2010.
The intervening six months to date have seen the Company update you on the
positive developments on our US$75m license deal with Baxter and access the
capital markets through an equity Placing at 7.0 pence per share by which means
Lipoxen raised some GBP1.23 million in April this year. The Placing was mainly
supported by existing shareholders and management. This is the second Placing
where management has subscribed for a material proportion of the funding.
These new equity funds, combined with ongoing Fee for Service income and the
incoming US$2m Baxter License fee payment due payable next month have combined
to substantially relieve the seemingly ever-present cash pressures on the
Company. Additionally, and subject only to shareholder approval of the necessary
"headroom" authority, Baxter has been granted a 5 year Warrant (expiring on 30th
June 2015) to subscribe for $2m worth of new shares at 9.02 pence per share.
Financial Review
The financial results for the Group in the period under review were:
+----------------------------------------------+-----------+-----------+----------+
| | 6 months | 6 months | 12 |
| | to | to | months |
| | 30/06/10 | 30/06/09 | to |
| | | | 31/12/09 |
+----------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+----------------------------------------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------------+-----------+-----------+----------+
| Turnover | 76 | 411 | 469 |
+----------------------------------------------+-----------+-----------+----------+
| Total pre-tax losses for period | 1,539 | 1,433 | 3,631 |
+----------------------------------------------+-----------+-----------+----------+
| Non-cash component of total pre-tax loss | 232 | 217 | 619 |
+----------------------------------------------+-----------+-----------+----------+
| Net cash at end of period | 946 | 2,797 | 1,018 |
+----------------------------------------------+-----------+-----------+----------+
| Net asset value at the end of the period | 1,989 | 4,289 | 2,248 |
+----------------------------------------------+-----------+-----------+----------+
+-----------------------------+--+--+--------------+------------+------------+------------+
| | Pence | Pence | Pence |
+--------------------------------------------------+------------+------------+------------+
| Loss per share - basic and fully diluted | 0.94 | 1.14 | 2.47 |
+--------------------------------------------------+------------+------------+------------+
| Net asset value per share - basic | 1.12 | 2.78 | 1.46 |
+--------------------------------------------------+------------+------------+------------+
| Net asset value per share - fully diluted | 1.11 | 2.69 | 1.43 |
+--------------------------------------------------+------------+------------+------------+
| Non-cash component of total pre-tax losses: | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------------------+------------+------------+------------+
| Depreciation of owned assets | 124 | 137 | 297 |
+--------------------------------------------------+------------+------------+------------+
| R&D costs - equity settled | 0 | 75 | 312 |
+--------------------------------------------------+------------+------------+------------+
| Share option expense - equity settled | 108 | 5 | 10 |
+--------------------------------------------------+------------+------------+------------+
| | --------- | -------- | ---------- |
+--------------------------------------------------+------------+------------+------------+
| Total principal non-cash items | 232 | 217 | 619 |
+--------------------------------------------------+------------+------------+------------+
| | ======= | ====== | ======= |
+--------------------------------------------------+------------+------------+------------+
| Research and development - | | Note (1) | 751 | 934 | 2,142 |
| cash settled | | | | | |
+--------------------------------+--+--------------+------------+------------+------------+
| Other expenses - cash settled | Note (2) | 633 | 696 | 1,349 |
+-----------------------------------+--------------+------------+------------+------------+
| | | ---------- | ---------- | ---------- |
+-----------------------------------+--------------+------------+------------+------------+
| Total expenses - cash settled | | 1,384 | 1,630 | 3,491 |
+-----------------------------------+--------------+------------+------------+------------+
| Total non-cash items | | | 232 | 217 | 619 |
+-----------------------------+-----+--------------+------------+------------+------------+
| | | | ---------- | ---------- | ---------- |
+-----------------------------+-----+--------------+------------+------------+------------+
| Total administrative | | 1,616 | 1,847 | 4,110 |
| expenses | | | | |
+-----------------------------+--------------------+------------+------------+------------+
| | ======= | ======= | ======= |
+--------------------------------------------------+------------+------------+------------+
| | | | % | % | % |
+--------------------------------+--+--------------+------------+------------+------------+
| Research and development - | | | 54.3 | 57.3 | 61.4 |
| cash settled | | | | | |
+--------------------------------+--+--------------+------------+------------+------------+
| Other expenses - cash settled | | 45.7 | 42.7 | 38.6 |
+-----------------------------------+--------------+------------+------------+------------+
| | | --------- | ---------- | --------- |
+-----------------------------------+--------------+------------+------------+------------+
| Total expenses - cash settled | | 100.0 | 100.0 | 100.0 |
+-----------------------------------+--------------+------------+------------+------------+
| | ======= | ======= | ======= |
+--------------------------------------------------+------------+------------+------------+
| | | | | | | |
+-----------------------------+--+--+--------------+------------+------------+------------+
NOTES
1. The year-on-year reduction is mainly comprised of a continuing reduced
level of external research costs compared to the previous periods. A recently
completed restructuring programme is expected to keep this expense at the lower
levels now being experienced.
2. These costs have decreased in line with the application of corporate-wide
cost controls, notwithstanding continuing upwards pressures in audit, legal
regulatory and, of course, the imperative to maintain and expand the IP
protection of our technologies.
PRINCIPAL PROGRAMME REVIEW
MAIN LICENSE AGREEMENT
Baxter PSA-Factor VIII
The Company has recently concluded an important transaction with Baxter by
which:
a) Within the next 20 days, Lipoxen will receive US$2m by way of a License
Amendment Fee whereby Baxter is now able to extend the timelines in which it has
to meet certain License Milestones per our core agreement. As a corollary to the
Amendment Fee, the $2m to be paid now will be fully offset against the next due
License Milestone on the Factor VIII programme, this being $2m payable at the
Investigational New Drug (IND) filing stage, being the US FDA approval required
before a candidate drug can enter a Phase I Clinical Trial.
b) Subject to Lipoxen shareholder approval, Baxter has been granted Warrant
Subscription Rights over US$2m worth (at the date of exercise) of ordinary
shares in the Company exercisable at a price of 9.02 pence per share, being the
Volume Weighted Average Share price for the 5 trading days ending on 15th
September 2010. The Warrant is for a period of 5 years, is exercisable up to
and including 30th June 2015 but may not be exercised before the necessary
shareholder authorities have been granted.
c) Baxter has been granted the right to nominate a board representative to
serve on the Lipoxen plc board of directors. While this right has been
time-limited to be exercised no later than 31st December 2010, I look forward
very much to the scientific and commercial contributions that will be made from
their representation.
As announced in June, Baxter continues to move forward on pre-clinical studies
using the Company's PSA technology, including extending the development
programme to include two additional drug candidates for the treatment of
haemophilia A, B and for patients with inhibitors. Baxter has also commissioned
the Company to carry out additional Fee for Service work in support of this
expanding programme.
In short, this collaboration continues to move forward in a very positive manner
and your Board is further encouraged by Baxter's commitment to the use of our
technology on its core franchise product and on its existing and prospective
equity investments in the Company.
DRUG DEVELOPMENT: LEAD CANDIDATES
ErepoXen (long-acting erythropoietin/"EPO")
The currently ongoing Phase II (a) European-compliant clinical trial is
progressing well with dosing of the remaining few patients and delivery of the
final trial report expected to be completed by end of the year. This is in line
with previous guidance from our partner, the Serum Institute of India ("SIIL")
our second largest shareholder and our co-developer of the EPO product
candidate.
SuliXen (long-acting insulin)
This programme remains on track as previously reported. Phase II trials of
SuliXen are now expected to commence in Russia in Q4 this year with results due
H1-2011.
We remain in discussion with the Barbara Davis Centre for Childhood for Diabetes
("BDC") as to the preferred next development steps to be taken. While the
current programme has shown that our SuliXen product is only as effective as
other therapies for the prevention or reversal of diabetes, it has demonstrated
positive therapeutic outcomes for treatment of the disease. This continuation
of the programme has budgetary considerations and we are therefore continuing
our dialogue with the BDC on the costs of conducting further challenge efficacy
studies in diabetic animals. We expect to report further on this programme
before end-2010.
FDS has now also initiated a pre-clinical study in St Petersburg on a novel
application of our long-acting insulin candidate for a neurological disorder.
This is a further example of how the Company's product offerings can have
applications broader than their initial target indication. This project is
ongoing and is expected to report in H1-2011.
Nanoparticle technology (ImuXen)
Influenza vaccine
The challenge study end-stage of this project is nearing completion to such
degree and with such level of positive expectation that the Company has now
initiated a process for full scale clinical development aimed at ensuring the
near seamless continuation of the development of Lipoxen's influenza vaccine
product candidate. The final report on the current programme (being part-funded
by the UK's Technology Strategy Board) is expected to be released early in Q4
this year. The Company has developed a number of viable vaccine candidates and
hopes to move to the next pre-clinical development stage early in 2011 subject
always to the availability of internal capital and/or the securing of external
collaborator funding arrangements which we hope to make in the next 3-6 months.
OTHER PROGRAMMES
International AIDS Vaccine Initiative ("IAVI")
In April this year we reported initial results which demonstrated good antibody
responses to some of the Lipoxen formulations. However neutralisation data
analysis was delayed due to testing backlogs in the USA. This data is now
available but requires further detailed analysis before the Company's Scientific
Sub-Committee will be able to recommend next steps. The Company now expects to
report more conclusively on this initiative before the end of Q4-10.
siRNAblate (gene silencing)
In June 2009 we were pleased to announce that the Company had entered into a new
technology evaluation agreement with an un-named Large Pharma company for the
use of Lipoxen's siRNAblate technology to evaluate the effectiveness of
combining the Pharma company's proprietary siRNA with Lipoxen's platform
technology.
We are now nearing the delivery point of the final study report and we will
provide an update as soon as this is available - currently expected to be in the
next few weeks.
Pharmsynthez Collaboration
The important collaboration with Pharmsynthez ("PSZ") in St Petersburg is
progressing well on both our PolyXen and ImuXen platforms where we have six
projects currently in pre-clinical co-development. The "next stage" development
timelines for each are as follows:
PRODUCTINDICATIONPLATFORMNEXT STAGESTART
Deoxyribonulease Cystic fibrosis PolyXen
Candidate selection Q2-2011
Oxyntomodulin Obesity PolyXen
Select indication H1-2011
Doxorubicin Cancer
PolyXen Optimization work Ongoing
Multiple sclerosis vaccine MS ImuXen
Clinical trial application Q4-2010/Q1-2011
HIV therapeutic vaccine HIV ImuXen
Phase I Q2-2011
H1 therapeutic vaccine Cancer ImuXen
Phase I-II(a) Q4-2011
Encouraging results for the Multiple Sclerosis ("MS") vaccine candidate have
been reported and we hope that this may be the first of the projects to reach
the clinical trial stage early in 2011.
The entire programme with PSZ is aimed at delivering human proof of concept data
in early course and we remain hopeful that a number of the potential candidates
will deliver results that justify them being advanced into the clinic.
INTELLECTUAL PROPERTY
In January this year the Company was pleased to announce that its PSA
Bio-Polymer technology had been granted US patent cover, thereby extending the
cover of the technology in the world's largest market.
This was shortly followed (in early February) by the announcement that Lipoxen's
PSA G-CSF "StimuXen" technology had been granted European patent protection for
six European territories, including the UK, Germany, France, Spain, Italy and
Switzerland.
The Company views the protection of its IP position as crucial to the building
of long-term shareholder value and we will continue to invest heavily in this
area as our proprietary technologies continue through the development process.
MANAGEMENT INCENTIVES
This issue remains at the heart of the continuing commercialisation of the
Company's technologies and so it was pleasing to finally be able to put in place
the incentive programme for the executive management team which was first
approved by shareholders at the 2009 AGM.
The table of awards, vesting criteria and exercise prices is set out below:
+--------------------+--------------------+-----------+------------+-----------+------------+
| Vesting | Scott Maguire | Colin Hill | Share |
| | | | price |
| | | | hurdle |
| | | |(pence) ** |
+ +--------------------------------+------------------------+ +
| | EMI (1) | JSOP | | EMI (1) | JSOP |
| | | (2) | | | (2) |
+--------------------+--------------------+-----------+------------+-----------+------------+
| Immediately | 1,547,096 | 614,575 | *1,323,396 | NIL | n/a |
+--------------------+--------------------+-----------+------------+-----------+------------+
| Performance based | | | | | |
+--------------------+--------------------+-----------+------------+-----------+------------+
| Tranche 1 | 0 | 1,080,836 | 74,566 | 487,131 | 20.00 |
+--------------------+--------------------+-----------+------------+-----------+------------+
| Tranche 2 | 0 | 1,080,836 | 74,566 | 487,131 | 40.00 |
+--------------------+--------------------+-----------+------------+-----------+------------+
| Tranche 3 | 0 | 1,080,837 | 74,568 | 487,132 | 100.00 |
+--------------------+--------------------+-----------+------------+-----------+------------+
| TOTAL | 1,547,096 | 3,857,084 | 1,547,096 | 1,461,394 | |
+--------------------+--------------------+-----------+------------+-----------+------------+
(1) Enterprise Management Incentives (2) Joint Share Ownership Plan
* Includes 200,000 EMI options re-granted following the surrender on
9th June 2010 of 400,000 options granted to Colin Hill on 31st July 2007.
** For the performance- based awards respectively
The awards were comprehensive in scope and were fully described in the relevant
Regulatory News service (RNS) announcement made on 10th June 2010 - a copy of
which can be accessed through the Company's website. My comments at that time I
believe bear repetition:
"I am delighted to be able to announce these awards which have been made to
further align the interests of executive management with those of our
shareholders. They reflect the considerable commitment to the Company and its
successful development by our executive directors who have already demonstrated
their belief in and support for Lipoxen by their substantial personal
contributions to both recent share Placings (2009 and 2010) and also to after-
market purchases. I am confident that with Scott Maguire as CEO and Colin Hill
as CFO, Lipoxen has every reason to be confident that the Company's day-to-day
management affairs will be conducted assiduously and with the sole focus of
maximising shareholder value."
OUTLOOK
In my last report I discussed a number of new initiatives, including:
· The acquisition of new and complementary platform technologies
· The acquisition of new product candidates able to utilize our IP
· gaining access to external infrastructure to reduce our dependence on
third parties
While your Board is not yet ready to announce the conclusive completion of any
of the above, I am able to report that they each remain in close focus of
Management's attention, with a number of opportunities already having been taken
beyond the exploratory stages. These initiatives remain pivotal to securing the
commercial future that your Board believes can be captured.
The Board remains excited about the prospects for the Company and has evidenced
this confidence by subscribing material sums in the last two fundraisings. The
prospects for value delivery are such that, of the total executive directors'
new equity incentives, 60% have vesting hurdle prices set in three equal
tranches, of, respectively 20p, 40p and GBP1 . The executives' interests are
therefore truly aligned with those of all of the Company's shareholders.
I look forward to updating shareholders when the Company reports upon its full
FY2010 results.
Brian Richards
Non-Executive Chairman
London: 20th September 2010
INDEPENDENT REVIEW REPORT TO LIPOXEN PLC
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly report for the six months ended 30th June 2010
which comprises the condensed consolidated income statement, the condensed
consolidated balance sheet, the condensed consolidated cash flow statement, the
condensed consolidated statement of changes in net equity and related notes. We
have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the half-yearly report in
accordance with the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly report has
been prepared using accounting policies consistent with those to be applied in
the next annual financial statements and in accordance with International
Accounting Standard 34, "Interim Financial Reporting", as adopted by the
European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly report for the
six months ended 30th June 2010 is not prepared, in all material respects, in
accordance with the AIM Rules of the London Stock Exchange and International
Accounting Standard 34 as adopted by the European Union.
INDEPENDENT REVIEW REPORT TO LIPOXEN PLC
Emphasis of Matter - Going Concern
In forming our conclusion on the condensed set of financial statements we have
considered the adequacy of the disclosures in Note 2 "Fundamental accounting
concept - going concern". This notes that in order to maintain the level of
scientific effort required to develop the Group's technologies and to
commercialise them to such degree as will be necessary to become a
cash-generative business, the Group will need to access new cash in addition to
that available to it at the period end; such new cash will either be generated
internally from, as yet, non-contractual feasibility and licensing sources
and/or from the raising of new capital. These conditions, along with the other
matters explained in Note 2 to the financial statements, indicate the existence
of a material uncertainty which may cast significant doubt about the Group's
ability to continue as a going concern.
The condensed set of financial statements do not reflect any adjustments that
would be required to be made if they were to be prepared on a basis other than
the going concern basis.
PKF (UK) LLP
London, UK
20th September 2010
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30th JUNE 2010
+----------------------------------------+----+--+-----------------------+-----------------------+------------------------+
| | | Six | Six | Year |
| | | months | months | |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | to | to | to |
| | | 30/06/10 | 30/06/09 | 31/12/09 |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | Note | Unaudited | Unaudited | Audited |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | GBP | GBP | GBP |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | | | |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| REVENUE | 4 | 76,011 | 411,097 | 468,579 |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | --------------------- | --------------------- | ---------------------- |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| ADMINISTRATIVE EXPENSES | | | |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| Research and development expenditure | 750,766 | 1,008,861 | 2,453,526 |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| Administrative expenses | 865,566 | 838,556 | 1,656,649 |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| | | --------------------- | --------------------- | |
| | | | | ---------------------- |
+---------------------------------------------+--+-----------------------+-----------------------+------------------------+
| Total | | 1,616,332 | 1,847,417 | 4,110,175 |
+---------------------------------------------+--+-----------------------+-----------------------+------------------------+
| | | --------------------- | --------------------- | |
| | | | | ---------------------- |
+---------------------------------------------+--+-----------------------+-----------------------+------------------------+
| OPERATING LOSS | | (1,540,321) | (1,436,320) | (3,641,596) |
+---------------------------------------------+--+-----------------------+-----------------------+------------------------+
| | | | |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| Finance income | 1,338 | 3,280 | 10,710 |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| Finance costs | - | - | - |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| | --------------------- | --------------------- | |
| | | | --------------------- |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| LOSS BEFORE TAXATION | (1,538,983) | (1,433,040) | (3,630,886) |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| | | | |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| Income tax credit | | - | - | 173,628 |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | | | |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | --------------------- | --------------------- | |
| | | | | --------------------- |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| LOSS FOR THE YEAR ATTRIBUTABLE TO | | (1,538,983) | (1,433,040) | (3,457,258) |
| EQUITY HOLDERS OF THE PARENT | | | | |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | ================= | ================= | |
| | | | | ================= |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | | |
+------------------------------------------------+-----------------------+-----------------------+------------------------+
| Loss per share (pence) - basic and | 6 | (0.94)p | (1.14)p | (2.47)p |
| fully diluted | | | | |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | ================= | ================= | |
| | | | | ================= |
+----------------------------------------+-------+-----------------------+-----------------------+------------------------+
| | | | | | |
+----------------------------------------+----+--+-----------------------+-----------------------+------------------------+
There are no other items of comprehensive income and therefore no separate
statement has been presented.
CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30th JUNE 2010
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | As at | As at | As at |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | 30/06/10 | 30/06/09 | 31/12/09 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| |Note | Unaudited | Unaudited | Audited |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | GBP | GBP | GBP |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| NON-CURRENT ASSETS | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Property, plant and equipment | | 367,536 | 548,864 | 480,582 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Goodwill | | 1,061,476 | 1,061,476 | 1,061,476 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | 1,429,012 | 1,610,340 | 1,542,058 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| CURRENT ASSETS | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Trade and other receivables | | 205,025 | 468,740 | 235,492 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Cash and cash equivalents | | 946,213 | 2,796,603 | 1,017,890 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | 1,151,238 | 3,265,343 | 1,253,382 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| CURRENT LIABILITIES | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Trade and other payables | | (591,580) | (586,299) | (547,717) |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| NET CURRENT ASSETS | | 559,658 | 2,679,044 | 705,665 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| NET ASSETS | | 1,988,670 | 4,289,384 | 2,247,723 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | ================= | ================= | ================= |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| EQUITY ATTRIBUTABLE TO EQUITY | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| HOLDERS OF THE PARENT | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Share capital | 7 | 2,519,661 | 2,403,790 | 2,405,486 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Share premium account | | 26,521,349 | 25,081,916 | 25,057,700 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| JSOP shares | 8 | (405,694) | - | - |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Reverse acquisition reserve | | (8,252,127) | (8,252,127) | (8,252,127) |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Accumulated losses | | (18,394,519) | (14,944,195) | (16,963,336) |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| TOTAL EQUITY | | 1,988,670 | 4,289,384 | 2,247,723 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | ================= | ================= | ================= |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Net assets per share - basic | 9 | 1.12p | 2.78p | 1.46p |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | ================= | ================= | ================= |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Net assets per share - fully diluted | 9 | 1.11p | 2.69p | 1.43p |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | ================= | ================= | ================= |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS TO 30th JUNE 2010
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | Six | Six | Year |
| | | months | months | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | to | to | to |
| | | 30/06/10 | 30/06/09 | 31/12/09 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| |Note | Unaudited | Unaudited | Audited |
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | GBP | GBP | GBP |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Cash flows from operating activities | 5 | (1,233,629) | (532,961) | (2,378,574) |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Interest received | | 1,338 | 3,280 | 10,710 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Taxation received | | - | - | 173,628 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Net cash outflow from operating | | (1,232,291) | (529,681) | (2,194,236) |
| activities | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Cash flows from investing activities | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Purchase of property, plant and | | (11,516) | (19,904) | (111,542) |
| equipment | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Net cash outflow from investing | | (11,516) | (19,904) | (111,542) |
| activities | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Cash flows from financing activities | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Issue of equity share capital | | 1,172,130 | 2,744,123 | 2,721,603 |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Net (decrease)/increase in cash and | | (71,677) | 2,194,538 | 415,825 |
| cash equivalents | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Cash and cash equivalents at beginning | | 1,017,890 | 602,065 | 602,065 |
| of year | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- | --------------------- |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| Cash and cash equivalents at end of | | 946,213 | 2,796,603 | 1,017,890 |
| year | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | ================= | ================= | ================= |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
| | | | | |
| | | | | |
+----------------------------------------+------+-----------------------+-----------------------+-----------------------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
FOR THE SIX MONTHS TO 30th JUNE 2010
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | | | | Reverse | | |
| | Share | Share | JSOP | acquisition | Accumulated | |
| | capital | premium | shares | reserve | losses | Total |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| At 1st January | 2,232,790 | 22,508,793 | - | (8,252,127) | (13,516,233) | 2,973,223 |
| 2009 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Loss for six | | | | | | |
| months ended | - | - | - | - | (1,433,040) | (1,433,040) |
| 30th June 2009 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Shares issued | 171,000 | 2,736,000 | - | - | - | 2,907,000 |
| for cash | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Share issue | - | (162,877) | - | - | - | (162,877) |
| expenses | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Share-based | - | - | - | - | 5,078 | 5,078 |
| payments | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | ------------------- | ----------------- | ----------------- | ------------------- | ---------------------- | ----------------- |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| At 30th June | 2,403,790 | 25,081,916 | - | (8,252,127) | (14,944,195) | 4,289,384 |
| 2009 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Loss for six | | | | | | |
| months ended | - | - | - | - | (2,024,218) | (2,024,218) |
| 31st December | | | | | | |
| 2009 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Shares issued | 1,696 | 804 | - | - | - | 2,500 |
| for cash | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Share issue | - | (25,020) | - | - | - | (25,020) |
| expenses | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Share-based | - | - | - | - | 5,077 | 5,077 |
| payments | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | ------------------- | ----------------- | ----------------- | ------------------- | ---------------------- | ----------------- |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| At 31st | 2,405,486 | 25,057,700 | - | (8,252,127) | (16,963,336) | 2,247,723 |
| December 2009 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Loss for six | | | | | | |
| months ended | - | - | - | - | (1,538,983) | (1,538,983) |
| 30th June 2010 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | ------------------- | ----------------- | ----------------- | ------------------- | ---------------------- | ----------------- |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Total | | | | | | |
| comprehensive | 2,405,486 | 25,057,700 | - | - | (18,502,319) | 708,740 |
| income/(expenditure) | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Shares issued | 87,583 | 1,138,576 | - | - | - | 1,226,159 |
| for cash | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Shares issued | | | | | | |
| under JSOP | 26,592 | 385,590 | - | - | - | 412,182 |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Own shares | | | | | | |
| held by JSOP | - | - | (405,694) | - | - | (405,694) |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Share issue | - | (60,517) | - | - | - | (60,517) |
| expenses | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| Share-based | - | - | - | - | 107,800 | 107,800 |
| payments | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | ------------------- | ----------------- | ----------------- | ------------------- | ---------------------- | ----------------- |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| At 30th June | 2,519,661 | 26,521,349 | (405,694) | (8,252,127) | (18,394,519) | 1,988,670 |
| 2010 | | | | | | |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
| | ================= | ================= | ================= | ================= | ================= | ================= |
+----------------------+---------------------------+-------------------+-------------------+---------------------+------------------------+-------------------+
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30th JUNE 2010
1. GENERAL INFORMATION
The interim financial statements for the six months ended 30th June 2010 are
unaudited and were approved by the Directors of the Company on 20th September
2010. The condensed financial information set out above does not constitute
statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The comparative figures for the year ended 31st December 2009 were derived from
the statutory accounts for that year which have been delivered to the Registrar
of Companies. Those accounts received an unqualified audit report, which
included a reference by way of emphasis without qualifying the report to the
preparation of the accounts on the going concern basis of accounting. The audit
report contained no statements under sections 498(2) or (3) (accounting records
or returns inadequate, accounts not agreeing with records and returns, or
failure to obtain necessary information and explanations) of the Companies Act
2006.
The financial information has been prepared in accordance with the accounting
policies set out below. The accounts are drawn up in compliance with IAS 34
"Interim Financial Reporting" and the AIM Rules of the London Stock Exchange.
The annual financial statements are prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European Union.
2. ACCOUNTING POLICIES
The principal accounting policies of the Group have remained unchanged from
those set out in the Group's 2009 financial statements.
Fundamental accounting concept - going concern
As an early-stage development life sciences business, the Group has incurred
operating losses in the period under review, notwithstanding that substantial
clinical and technical progress was also made in the continuing successful
development of its proprietary technologies; consequently, the Group was a net
consumer of cash.
In order to maintain the level of scientific effort required to develop the
Group's technologies and to commercialise them to such degree as will be
necessary to become a cash-generative business, the Group will need to access
new cash in addition to that available to it at the period end; such new cash
will either be generated internally from, as yet, non-contractual feasibility
and licensing sources and/or from the raising of new capital.
The Directors have prepared a financial forecast for the period through to 31st
December 2011. The forecast includes assumptions that the Group will generate
cash inflows in this period from:
(a) the ongoing roll-out and licensing of the Group's technologies with its
existing collaborative partners;
(b) the roll-out and licensing of the Group's technologies with new
collaborative partners; and
(c) the raising of new capital.
The Group has successfully completed Phase I trials in both its insulin and EPO
products. These clinical successes have generated an increasing level of
commercial interest in not only protein drug development but also in the Group's
vaccine and gene silencing technologies. Capital markets remain uncertain and
the Company's ability to raise new capital entirely from such sources cannot be
relied upon as it is largely dependent upon market conditions that exist at the
time of raising the funds.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS TO 30th JUNE 2010
2. ACCOUNTING POLICIES (continued)
Fundamental accounting concept - going concern (continued)
While considering that platform technology applications to known and marketed
drugs confer lower commercial risks than in new drug development, the Directors
recognise that there are uncertainties surrounding these core issues.
If the Group was to prove unable to generate these additional cash inflows, the
cash balance of circa GBP950,000 as at 30th June 2010 would be insufficient to
fund the Group's activities at their current level for a period of twelve months
from the date of approval of these interim financial statements.
However, the Directors have a reasonable expectation that these uncertainties
can be managed to successful outcomes, and that, based on such assessment, the
Group will have adequate resources to continue in operational existence for the
foreseeable future. They have therefore prepared the financial information
contained herein on a going concern basis.
The financial information does not reflect any adjustments that would be
required to be made if they were to be prepared on a basis other than the going
concern basis.
Joint Share Ownership Plan (JSOP) shares
Where the Company issues equity share capital under its Joint Share Ownership
Plan, such shares are held in trust by the Group's Guernsey Special Purpose
Trust. The interests of the Trust are consolidated into the Group's financial
statements and the relevant amount treated as a reduction in equity.
3.SEGMENTAL ANALYSIS
The revenue and loss before tax are attributable to the one principal
activity of the Group. The net assets of the Group at 30th June 2010, 31st
December 2009 and 30th June 2009 are wholly attributable to the principal
activity. The Group comprises one operating segment for reporting purposes.
4. REVENUE
An analysis of revenue (by location of customer) is given below:
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | Six | Six | Year |
| | months | months | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | to | to | to |
| | 30/06/10 | 30/06/09 | 31/12/09 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | Unaudited | Unaudited | Audited |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | GBP | GBP | GBP |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| United States | 18,653 | 262,149 | 270,084 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Europe | 57,358 | 59,459 | 109,006 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Rest of World | - | 89,489 | 89,489 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | --------------------- | --------------------- | |
| | | | --------------------- |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | 76,011 | 411,097 | 468,579 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | ================= | ================= | |
| | | | ================= |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
5.RECONCILIATION OF LOSS BEFORE TAXATION TO
CASH OUTFLOWS FROM OPERATING ACTIVITIES
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | Six | Six | Year |
| | months | months | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | to | to | to |
| | 30/06/10 | 30/06/09 | 31/12/09 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | Unaudited | Unaudited | Audited |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | GBP | GBP | GBP |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Loss before taxation | (1,538,983) | (1,433,040) | (3,630,886) |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Adjustments for: | | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Equity-settled share options | 107,800 | 5,078 | 10,155 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Equity-settled research and development | - | 75,000 | 311,725 |
| | | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Depreciation | 124,562 | 137,012 | 296,932 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Investment income | (1,338) | (3,280) | (10,710) |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- |
| | --------------------- | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | (1,307,959) | (1,219,230) | (3,022,784) |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Decrease in receivables | 30,467 | 574,819 | 571,342 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Increase in payables | 43,863 | 111,450 | 72,868 |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | | --------------------- | --------------------- |
| | --------------------- | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| Net cash outflow from operating activities | (1,233,629) | (532,961) | (2,378,574) |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
| | | ================= | ================= |
| | ================= | | |
+--------------------------------------------+-----------------------+-----------------------+-----------------------+
6. LOSS PER SHARE
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | Six | Six | Year |
| | months | months | |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | to | to | to |
| | 30/06/10 | 30/06/09 | 31/12/09 |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | Unaudited | Unaudited | Audited |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | GBP | GBP | GBP |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | | | |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| Weighted average number of ordinary | 163,820,952 | 126,093,444 | 140,230,091 |
| shares in issue | | | |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | -------------------- | --------------------- | --------------------- |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | | | |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| Loss after taxation | 1,538,983 | 1,433,040 | 3,457,258 |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | --------------------- | --------------------- | --------------------- |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | | | |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| Loss per share | 0.94p | 1.14p | 2.47p |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
| | ============ | ============ | ============ |
+-------------------------------------+-----------------------+-----------------------+-----------------------+
There is no dilutive effect of share options on the basic loss per
share.
7. SHARE CAPITAL
The changes in the Company's issued share capital in the period have
been as follows:
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| | Ordinary shares | Deferred shares | Total |
| | of 0.5p | of 0.01p | |
+---------+-----------------------------------------------+-------------------------------------------+----------------+
| | Number | GBP | Number | GBP | GBP |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| | | | | | |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| At 1st | 154,397,230 | 771,986 | 16,335,000,000 | 1,633,500 | 2,405,486 |
| January | | | | | |
| 2010 | | | | | |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| Shares | 17,516,546 | 87,583 | - | - | 87,583 |
| issued | | | | | |
| for | | | | | |
| cash | | | | | |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| Shares | 5,318,478 | 26,592 | - | - | 26,592 |
| issued | | | | | |
| under | | | | | |
| JSOP | | | | | |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| | __________ | ________ | ____________ | _________ | ________ |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| At | 177,232,254 | 886,161 | 16,335,000,000 | 1,633,500 | 2,519,661 |
| 30th | | | | | |
| June | | | | | |
| 2010 | | | | | |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
| | ================== | =============== | ====================== | ================ | ============== |
+---------+-----------------------------+-----------------+------------------------+------------------+----------------+
Equity placing
On 1st April 2010, the Company issued 17,516,546 ordinary shares by way of a
placing. The shares were priced at 7p per share and raised cash of GBP1,226,159
before expenses.
Joint Share Ownership Plan ("JSOP") shares
On 10th June 2010, the Company issued 5,318,478 ordinary shares under the terms
of the Company's newly established JSOP at a price of 7.75p per share. GBP6,488
was subscribed in cash by the beneficiaries and GBP405,694 was advanced by the
Company to the Trustees of the Plan in order that the shares were issued fully
paid. To this extent the transaction was effectively cash neutral to the
Company.
This transaction resulted in an obligation by the Trust to settle the GBP405,694
advanced by the Company at such time as the benefit of the JSOP shares vests to
the beneficiaries and they elect to take full ownership of the shares. In
effect this amount is treated in a manner similar to treasury shares, being that
of a reduction of equity pending settlement of the loan associated with their
issue.
8. JSOP SHARES
This reserve arises when the Company issues equity share capital under its Joint
Share Ownership Plan, which is held in trust by the Group's Guernsey Special
Purpose Trust. The consideration paid in respect of these shares is deducted
from total shareholders' equity and classified as JSOP shares on consolidation.
9. NET ASSET VALUE PER SHARE
The "basic" net asset value per share figures are calculated on the basis of the
net assets attributable to equity shareholders divided by the number of ordinary
shares in issue at the relevant dates.
The "fully diluted" net assets per share figures are calculated by
adjusting the number of ordinary shares on the assumption of the exercise in
full of all options and warrant instruments extant as at the relevant dates
where the exercise price of any such instrument is less than the "basic" net
asset value per share.
10. Copies of the interim report are available to the public free of charge
from the Company at London Bioscience Innovation Centre, 2 Royal College Street,
London, NW1 0NH during normal office hours, Saturdays and Sundays excepted, for
14 days from today.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDCIUBBGGR
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