TIDMOBD
RNS Number : 7958O
Oxford BioDynamics PLC
22 May 2018
22 May 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
OXFORD BIODYNAMICS PLC
("OBD" or the "Company" and, together with its subsidiaries, the
"Group")
INTERIM RESULTS FOR THE SIX-MONTH PERIODED 31 MARCH 2018
Multiple new collaborations initiated and IP position
strengthened internationally
Oxford BioDynamics Plc (AIM: OBD), a biotechnology company
focused on the discovery and development of epigenetic biomarkers
based on regulatory genome architecture, for use within the
pharmaceutical and biotechnology industry, today announces its
interim results for the six-month period to 31 March 2018.
CORPORATE AND OPERATIONAL HIGHLIGHTS
-- Immuno-oncology data presented at Foundation for National
Institutes of Health (FNIH) Biomarker Consortium Cancer Steering
Committee Annual Symposium.
-- Rheumatoid arthritis collaboration with Pfizer and the University of Glasgow published.
-- Partnership with Holos Life Sciences to investigate
sports-related concussions with EpiSwitch(TM).
-- Grants of patents in the US and India covering Company's core technology.
-- Planned expansion of UK-based laboratory facilities to support increased demand.
-- Significant improvements in the efficiency and capacity of
internal R&D processes and increased investment in automated
robotic processes.
-- Continued commercial and scientific progress leading to new biomarker projects.
FINANCIAL HIGHLIGHTS
-- Revenue of GBP0.5m (H1 2017: GBP0.4m).
-- Operating loss of GBP1.3m (H1 2017: GBP2.8m) and adjusted
operating loss of GBP1.3m (H1 2017: GBP1.3m before one-off IPO
costs).
-- Cash of GBP9.6m as at 31 March 2018 (31 March 2017: GBP11.5m).
-- Net assets of GBP10.8m as at 31 March 2018 (31 March 2017:
GBP12.6m, 30 September 2017: GBP11.6m).
Commenting on the results, Christian Hoyer Millar, Chief
Executive Officer of Oxford BioDynamics, said:
"We are pleased that our investment in business development
activities and participation on advisory boards has driven an
increase in collaborations in the period. Additionally, we have
taken further steps to increase and expand our robust IP position.
We were delighted to enter into our second collaboration with a
major US biopharmaceutical company, in which we are developing
predictive biomarkers for checkpoint inhibitor therapies. This was
the fourth agreement we have entered into in the fast-moving field
of immunotherapy.
We have presented data on our EpiSwitch(TM) technology in a wide
variety of indications: ALS, rheumatoid arthritis, breast, prostate
and pancreatic cancers, and diabetes; demonstrating the versatility
of the platform. We look forward to reporting progress on our
ongoing and new biomarker projects and to continue to publish and
present our proprietary biomarker research through prestigious
journals and conferences."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further details please contact:
Oxford BioDynamics Plc +44 (0)1865 518910
Christian Hoyer Millar, CEO
Paul Stockdale, CFO
Shore Capital +44 (0)20 7408 4090
Nominated Adviser and Broker
Stephane Auton
Edward Mansfield
FTI Consulting +44 (0)20 3727 1000
Financial Public Relations
Advisor
Brett Pollard
Natalie Garland-Collins
Notes for Editors
About Oxford BioDynamics Plc
Oxford BioDynamics Plc (AIM: OBD) ("Oxford BioDynamics") is a
biotechnology company focused on the discovery and development of
epigenetic biomarkers for use within the pharmaceutical and
biotechnology industry.
The Company's award-winning, proprietary technology platform,
EpiSwitch(TM), aims to accelerate the drug discovery and
development process, improve the success rate of therapeutic
product development and take advantage of the increasing importance
of personalised medicine.
In particular, EpiSwitch(TM) can reduce time to market, failure
rates and the costs at every stage of drug discovery. Additionally,
the technology provides significant insights into disease
mechanisms for drug discovery and product re--positioning
programmes, and enables the personalisation of therapeutics for
patients in the context of challenging pricing environments where
improved clinical outcomes are critical.
Oxford BioDynamics is headquartered in the UK, and listed on the
London Stock Exchange's AIM under the ticker "OBD". For more
information please visit www.oxfordbiodynamics.com.
A copy of this announcement is available on the Company's
website at www.oxfordbiodynamics.com.
This announcement includes "forward-looking statements" which
include all statements other than statements of historical facts,
including, without limitation, those regarding the Group's
financial position, business strategy, plans and objectives of
management for future operations, and any statements preceded by,
followed by or that include forward-looking terminology such as the
words "targets", "believes", "estimates", "expects", "aims",
"intends", "will", "can", "may", "anticipates", "would", "should",
"could" or similar expressions or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Group's
control that could cause the actual results, performance or
achievements of the Group to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding the Group's present and
future business strategies and the environment in which the Group
will operate in the future. These forward-looking statements speak
only as at the date of this announcement. The Group expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Group's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statements are based. As a result of these
factors, readers are cautioned not to rely on any forward-looking
statement.
CHIEF EXECUTIVE OFFICER'S REVIEW
Introduction
The six-month period to 31 March 2018 has been one of continued
progress and development for OBD as we pursue our strategic goal of
making OBD's EpiSwitch(TM) technology the leading industry standard
for epigenetic biomarkers for the pharmaceutical and biotechnology
industry. So far this financial year, we have focused on:
-- Increasing the number of proprietary biomarker projects we have undertaken;
-- Strengthening our team;
-- Continuing to develop the Company's extensive intellectual property (IP) portfolio; and
-- Carefully managing our resources.
At a fundamental level, we are increasingly confident that OBD's
EpiSwitch(TM) platform, based on a biomarker modality associated
with 3D genome architecture and chromosome conformations, is able
to identify and develop strong disseminating biomarkers and
generate robust validated stratification signatures across a wide
range of therapeutic areas. In the current period, we have
presented data in fields as diverse as immuno-oncology (IO),
amyotrophic lateral sclerosis (ALS), rheumatoid arthritis, breast,
prostate and pancreatic cancers, diabetes, and several other
areas.
Our findings in IO and neurodegenerative disease have generated
particularly strong interest. As a result, we are planning a
significant expansion to our Oxford, UK-based laboratory facility,
in part to ready our EpiSwitch(TM) platform facilities for what we
anticipate will be increased demand for the utilisation of our
platform.
Commercial and scientific progress
During the period, OBD has successfully pursued biomarker
discovery projects across a wide range of indications, working with
collaborators including a number of major biopharmaceutical
companies, a significant US healthcare not-for-profit and academic
experts.
In IO, in January 2018 we announced a second collaboration with
a major US biopharmaceutical company to develop predictive
biomarkers for IO therapies. This was the fourth agreement entered
into by the Company for the discovery and development of biomarkers
in this fast-developing field. Our aim is to develop biomarkers
that can help to identify patients who are likely to respond to
particular immune checkpoint therapies, not to respond (disease
progressors), or develop debilitating side effects of the therapy
(hyper progressors). Earlier, in November 2017, Dr Alexandre
Akoulitchev, our Chief Scientific Officer, presented the results
from OBD studies in IO biomarker development at the annual meeting
of the Foundation for the National Institutes of Health (FNIH)
Biomarker Consortium Cancer Steering Committee, held in Washington,
DC. Three independent studies showed a robust and consistent
profile of EpiSwitch(TM) markers for response to immune checkpoint
inhibitor therapies, including anti-PD-L1 therapy Keytruda
(Pembrolizumab) and several other anti-PD-L1 assets in two disease
indications. Blind validation of an independent cohort of base line
patients treated with an anti-PD-L1 therapy showed that OBD's
EpiSwitch(TM) technology could predict response to treatment with
83% positive predictive value.
We presented data on the discovery of EpiSwitch(TM) biomarkers
for the diagnosis and prognosis (as 'fast' or 'slow progressing')
of ALS at a number of scientific conferences during the period,
including the 2017 Annual Northeast ALS Consortium (NEALS) Meeting
in Florida, US in October 2017 and 6th World CNS Summit in Boston,
MA in February 2018. Additional applications and examples of
stratification using EpiSwitch(TM) for an extended range of
neurodegenerative indications, psychiatric disorders and related
autoimmune and inflammatory conditions, including multiple
sclerosis, lupus, treatment-resistant depression, autism and
post-traumatic stress disorder were also presented and discussed at
the Boston conference.
In December 2017, OBD's work in collaboration with Pfizer Inc.
and the Institute of Infection, Immunity and Inflammation at the
University of Glasgow was published in the Journal of Translational
Medicine (Carini et al, 2018). Using EpiSwitch(TM), the team were
able to develop a 5-marker chromosome conformation signature (CCS)
panel that could identify newly diagnosed rheumatoid arthritis
patients as likely responders or non-responders to methotrexate, a
commonly prescribed first-line drug treatment. Identification of
non-responders currently takes around six months and that period of
ultimately ineffective treatment in the early stages of the disease
is thought to lead to substantial damage, which correlates with
future disability and loss of function. Earlier identification of
likely non-responders offers the potential for improved clinical
outcomes for these patients.
In November 2017, we announced a collaboration with a major US
biopharmaceutical company to support the development of novel
therapeutic candidates and next-generation companion diagnostics to
enable stratification of patient populations for clinical trials in
the area of fibrosis.
In October 2017, OBD research successfully stratifying patients
into different stages of type 2 diabetes was presented at the
Diabetes Asia 2017 conference.
In January 2018 we announced a partnership with Holos Life
Sciences to investigate the potential for EpiSwitch(TM)-based
biomarker development to provide new insights into, and help
quantify the risk of prolonged effects of, sports-related
concussions. Following an earlier agreement with EpiFit to
investigate epigenetic changes under the impact of fitness training
regimes using EpiSwitch(TM) (announced in January 2017), this
partnership is further evidence of a growing appreciation that the
EpiSwitch(TM) platform offers valuable access to actionable
stratifications associated with a broad range of pathological and
physiological conditions, within and outside of the clinical and
therapeutic space.
Strengthening our team
The Group has continued to appoint staff members to our team
during and shortly after the period, adding laboratory technicians
in the UK and Malaysia and bioinformaticians in the UK. The US
remains an area of management focus in this respect: we aim to
recruit further suitably qualified individuals to specific roles in
this key market.
IP portfolio development
OBD's IP portfolio comprises extensive patent and trademark
protection as well as considerable technological and scientific
know-how within the team. We have continued our strategy of
obtaining claims which provide the best possible protection for the
EpiSwitch(TM) platform and the biomarkers that are derived from it.
To this end, during the six months ended 31 March 2018, the Company
announced the grants of patents covering its core technology in the
US and India, and filed international patent applications for two
further patent families.
As well as these additions to the patent protection enjoyed by
the Company, during the period our Operations team have made
significant improvements in the efficiency and capacity of internal
R&D processes. We increasingly rely on automated robotic
processes in our lab, leading to improved throughput, accuracy and
reproducibility.
Resource management
During the period to 31 March 2018, we have continued careful
management of the Group's cash resources, ending the period with a
cash balance of GBP9.6m, representing a cash outflow before
exchange rate movements of less than GBP1.1m since 30 September
2017. More details are provided in the following financial
review.
Summary and outlook
After six months of continued commercial and scientific
progress, the Company is well-placed to continue to develop toward
its strategic goal of making OBD's EpiSwitch(TM) technology the
leading industry standard for epigenetic biomarkers for the
pharmaceutical and biotechnology industry. Over the coming months,
we expect to focus on making progress in ongoing and new biomarker
projects, both with commercial partners and in-house, further
growing our team, publishing and presenting the results of our
research through prestigious journals and conferences,
strengthening our IP position and expanding our UK laboratory.
Christian Hoyer Millar
Chief Executive Officer
FINANCIAL REVIEW
Overview
As noted in the Chief Executive Officer's review, during the six
months ended 31 March 2018, OBD continued to focus on multiple
biomarker discovery projects and strengthening its intellectual
property portfolio, as well as making limited focused additions to
our staff team and asset base. Relative to the six-month period to
31 March 2017, revenue and other operating income were both
increased and operating cash outflow was slightly lower.
Financial performance
Revenue for the six-month period to 31 March 2018 was GBP0.5m
(H1 2017: GBP0.4m), reflecting revenue recognised in proportion to
the stage of completion of the Group's biomarker research
projects.
Operating expenses before share option charges and IPO costs
were GBP1.8m (H1 2017: GBP1.6m). Of the GBP0.25m increase in
operating costs, approximately GBP0.15m related to an increase in
R&D costs, GBP0.05m to increased staff costs and GBP0.05m to
increased depreciation. General and other admin costs were broadly
level at GBP0.5m.
Other operating income for the six months to 31 March 2018 was
GBP0.2m (H1 2017: GBP0.1m) and mainly comprised grant income from
Innovate UK to support the Group's ALS biomarker research and
development programme, the results of which are referred to in the
CEO's review above.
The Group's operating loss (before one-off IPO-related costs)
was broadly level at GBP1.3m (H1 2017: GBP1.3m). Operating loss was
GBP1.3m (H1 2017: GBP2.8m, after restated IPO costs of GBP1.5m).
Details of the impact of the restatement of the unaudited interim
financial statements for the period ended 31 March 2017 are given
in Note 3 to the interim financial statements. The restated
comparative figures correctly account for various IPO-related costs
and are consistent with the audited accounts for the year ended 30
September 2017. There was no impact on revenue, cash or net assets
as a result of the restatement.
Finance income for the period of GBP41k related entirely to
interest receivable (H1 2017: GBP65k included foreign exchange
gains). Finance costs related to realised and unrealised exchange
losses, driven primarily by the effect on US dollar-denominated
cash and debtor balances of the appreciation of sterling relative
to the dollar over the period.
The taxation credit of GBP0.2m in the six months to 31 March
2018 (H1 2017: GBP0.1m) represents tax relief on research and
development expenditure during the period, the increase driven by
higher qualifying R&D costs including staff costs for team
members primarily engaged in R&D activity. The Group has not
recognised any deferred tax assets in respect of trading losses
arising in the current or prior financial periods.
Net loss for the half year was GBP1.1m (H1 2017 (restated):
GBP2.6m) and adjusted net loss before one-off IPO costs for the
same period was GBP1.1m (H1 2017: GBP1.2m). Loss per share for the
six months ended 31 March 2018 was 1.3 pence (H1 2017 (restated):
3.1 pence).
Financial position
The Group made additions to intangible and tangible fixed assets
during the period, mainly relating to patents protecting the
Group's technology and new lab equipment in Oxford, UK.
Cash and cash equivalents at 31 March 2018 were GBP9.6m (31
March 2017: GBP11.5m, 30 September 2017: GBP10.8m).
Trade and other payables at 31 March 2018 were GBP1.0m (31 March
2017: GBP0.7m); the noted increase is mainly as a result of the
timing of relatively large supplier payments.
Cash flow
Net cash used in operating activities was slightly reduced at
GBP1.0m (H1 2017: GBP1.1m). Net cash used in investing activities
was GBP0.3m (H1 2017: GBP0.1m) and net cash generated by financing
activities was GBP0.2m, arising from the exercise of share options
and the exchange of warrants during the period (H1 2017: GBP5.4m,
driven by the IPO in December 2016).
Overall net cash outflow for the six-month period ended 31 March
2018 was GBP1.2m (H1 2017: net cash inflow of GBP4.2m) including
outflow due to exchange movements on non-GBP denominated cash and
cash equivalents of GBP0.1m (H1 2017: inflow of GBP0.04m).
Summary
The Group's results for the six-month period to 31 March 2018
reflect our growing commercial success and increased research and
development activity. The Group remains well funded to continue its
near-term plans. The Board will continue to exercise careful cost
control as we expand our UK laboratory and appoint to further key
positions in our team over the second half of the financial
year.
Paul Stockdale
Chief Financial Officer
Consolidated income statement
Six month period Year ended
ended 31 March 30 September
2018 2017 2017
(unaudited) (unaudited, (audited)
restated)
Note GBP000 GBP000 GBP000
Continuing operations
Revenue 4,5 473 384 1,183
Research & development costs (excluding
staff costs) (316) (160) (407)
Staff costs (876) (813) (1,551)
General & other admin costs (485) (497) (1,350)
Share option charges 10 (121) (230) (398)
Depreciation and amortisation 7,8 (157) (113) (242)
Other operating income 197 118 252
--------- ------------ --------------
Operating loss before IPO costs (1,285) (1,311) (2,513)
Initial public offering costs - (1,490) (1,490)
Operating loss (1,285) (2,801) (4,003)
Finance income 41 65 88
Finance costs (112) - (117)
--------- ------------ --------------
Loss before tax (1,356) (2,736) (4,032)
Income tax 225 95 228
--------- ------------ --------------
Loss for the period from continuing
operations (1,131) (2,641) (3,804)
========= ============ ==============
Loss attributable to:
Owners of the Company (1,131) (2,641) (3,804)
Non-controlling interest - - -
--------- ------------ --------------
(1,131) (2,641) (3,804)
========= ============ ==============
Earnings per share
From continuing operations
Basic and diluted (pence per share) 6 (1.3) (3.1) (4.5)
========= ============ ==============
Consolidated statement of comprehensive income
Six month period Year ended
ended 31 March 30 September
2018 2017 2017
(unaudited) (unaudited, (audited)
restated)
GBP000 GBP000 GBP000
Loss for the period (1,131) (2,641) (3,804)
Exchange differences on translation of
foreign operations
that may be reclassified to the income
statement (27) 16 2
------------ ------------ --------------
Total comprehensive income for the
period (1,158) (2,625) (3,802)
============ ============ ==============
Total comprehensive income attributable
to:
Owners of the Company (1,157) (2,625) (3,802)
Non-controlling interest (1) - -
------------ ------------ --------------
(1,158) (2,625) (3,802)
============ ============ ==============
Consolidated statement of financial position
31 March 31 March 30 September
2018 2017 2017
(unaudited) (unaudited, (audited)
restated)
GBP000 GBP000 GBP000
Assets Note
Non-current assets
Intangible fixed assets 7 297 - 11
Property, plant and equipment 8 746 657 754
Deferred tax asset - - -
--------- ------------ -------------
Total non-current assets 1,043 657 765
--------- ------------ -------------
Current assets
Inventories 156 130 90
Trade and other receivables 1,003 1,058 1,029
Cash and cash equivalents 9,636 11,520 10,795
--------- ------------ -------------
Total current assets 10,795 12,708 11,914
--------- ------------ -------------
Total assets 11,838 13,365 12,679
========= ============ =============
Equity and liabilities
Capital and reserves
Share capital 9 875 861 861
Share premium 6,761 6,533 6,533
Translation reserve 166 206 192
Share option reserve 2,847 3,003 2,928
Warrant reserve - 678 678
Retained earnings 133 1,304 384
--------- ------------ -------------
Equity attributable to owners of
the Company 10,782 12,585 11,576
Non-controlling interest 18 19 19
--------- ------------ -------------
Total equity 10,800 12,604 11,595
========= ============ =============
Current liabilities
Trade and other payables 974 710 1,027
Current tax liabilities - - -
--------- ------------ -------------
Total current liabilities 974 710 1,027
--------- ------------ -------------
Non-current liabilities
Provisions 64 51 57
Deferred tax - - -
--------- ------------ -------------
Total non-current liabilities 64 51 57
--------- ------------ -------------
Total liabilities 1,038 761 1,084
--------- ------------ -------------
Total equity and liabilities 11,838 13,365 12,679
========= ============ =============
Consolidated statement of changes in equity
Share Share Translation Share Warrant Retained Attributable Non-controlling Total
capital premium reserve option reserve earnings to share- interest
reserve holders
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October
2016 816 - 190 2,773 - 3,945 7,724 19 7,743
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Loss for the
period
as originally
reported - - - - - (1,681) (1,681) - (1,681)
Restatement: - - - - - (960) (960) - (960)
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Loss for the
period
(restated) - - - - - (2,641) (2,641) - (2,641)
Other
comprehensive
income for
the
period - - 16 - - - 16 - 16
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Total
comprehensive
income for
the
period - - 16 - - (2,641) (2,625) - (2,625)
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Transactions with owners recorded in equity
New issue of
shares
as originally
reported 45 6,251 - - - - 6,296 - 6,296
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Restatement:
IPO costs - 523 - - - - 523 - 523
Issue of
warrants - (241) - - 678 - 437 - 437
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
New issue of
shares
and warrants
(restated) 45 6,533 - - 678 - 7,256 - 7,256
Share option
credit - - - 230 - - 230 - 230
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
At 31 March
2017
as originally
reported 861 6,251 206 3,003 - 2,264 12,585 19 12,604
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
At 31 March
2017
(restated) 861 6,533 206 3,003 678 1,304 12,585 19 12,604
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
At 1 April
2017 861 6,533 206 3,003 678 1,304 12,585 19 12,604
Loss for the
period - - - - - (1,163) (1,163) - (1,163)
Other
comprehensive
income for
the
period - - (14) - - - (14) - (14)
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Total
comprehensive
income for
the
period - - (14) - - (1,163) (1,177) - (1,177)
Transactions with owners recorded in equity
Share option
credit - - - 168 - - 168 - 168
Lapse of
vested
share options - - - (243) - 243 - - -
At 30
September
2017 861 6,533 192 2,928 678 384 11,576 19 11,595
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
At 1 October
2017 861 6,533 192 2,928 678 384 11,576 19 11,595
Loss for the
period - - - - (1,131) (1,131) - (1,131)
Other
comprehensive
income for
the
period - - (26) - - - (26) (1) (27)
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Total
comprehensive
income for
the
period - - (26) - - (1,131) (1,157) (1) (1,158)
-------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Transactions with owners recorded in equity
Exercise of
share
options 7 228 - (198) - 198 235 - 235
Exchange of
warrants 7 - - - (678) 678 7 - 7
Share option
credit - - - 121 - - 121 - 121
Lapse of
vested
share options - - - (4) - 4 - - -
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
At 31 March
2018 875 6,761 166 2,847 - 133 10,782 18 10,800
--------------- -------- -------- ------------ -------- -------- --------- ------------- ---------------- --------
Consolidated statement of cash flows
Six month period Year ended
ended 31 March 30 September
2018 2017 2017
(unaudited) (unaudited, (audited)
restated)
Note GBP000 GBP000 GBP000
Loss for the financial period (1,131) (2,641) (3,804)
Adjustments to reconcile loss for
the period to net cash flows:
R&D tax credit (225) (95) (228)
Net interest (41) (43) (87)
(Profit) on disposal of property, (3) - -
plant and equipment
Amortisation of intangible fixed
assets 7 1 - -
Depreciation of property, plant
and equipment 8 156 113 242
IPO costs - 1,490 1,490
Movement in provisions 7 7 13
Share based payments charge 10 121 230 398
Working capital adjustments:
Decrease/(increase) in trade and
other receivables 4 (16) 147
Decrease in other financial instruments - - -
(Increase)/decrease in inventories (66) (24) 16
(Decrease)/increase in trade and
other payables (111) (56) 243
--------- ------------ --------------
Operating cash flows before interest
and tax paid (1,288) (1,036) (1,570)
R&D tax credits received 261 - -
--------- ------------ --------------
Cash used in operations (1,027) (1,036) (1,570)
Net foreign exchange movements 71 (18) 44
--------- ------------ --------------
Net cash used in operating activities (956) (1,054) (1,526)
--------- ------------ --------------
Investing activities
Interest received 28 61 105
Purchases of fixed assets (382) (204) (425)
Proceeds from disposal of tangible 12 - -
assets
--------- ------------ --------------
Net cash used in investing activities (342) (143) (320)
--------- ------------ --------------
Financing activities
Interest paid - - -
Issue of equity shares 242 7,107 7,107
Share issue costs - (288) (288)
IPO costs - (1,419) (1,419)
Equity dividends paid - - -
--------- ------------ --------------
Net cash generated by financing
activities 242 5,400 5,400
--------- ------------ --------------
Net (decrease)/increase in cash
and cash equivalents (1,056) 4,203 3,554
Foreign exchange movement on cash and cash
equivalents (103) 38 (38)
Cash and cash equivalents at beginning
of year 10,795 7,279 7,279
--------- ------------ --------------
Cash and cash equivalents at end
of period 9,636 11,520 10,795
========= ============ ==============
Notes
1. General information
The interim financial information was authorised for issue by
the Board of Directors on 21 May 2018. The information for the
period ended 31 March 2018 has not been audited and does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006 and should therefore be read in conjunction with
the audited financial statements of the Company and its
subsidiaries as at and for the year ended 30 September 2017, which
were prepared in accordance with EU Adopted International Financial
Reporting Standards and have been delivered to the Registrar of
Companies. The Report of the Auditor on the financial statements
was unqualified, did not contain an emphasis of matter paragraph
and did not contain any statement under section 498 of the
Companies Act 2006. This interim information does not comply with
IAS 34 Interim Financial Reporting, as is permissible under the
rules of AIM.
2. Basis of accounting
Basis of preparation
These interim consolidated financial statements have been
prepared under the historical cost convention and in accordance
with the recognition and measurement principles of European Union
Adopted International Financial Reporting Standards (IFRSs).
The accounting policies adopted in the preparation of the
half-year consolidated financial statements are consistent with
those followed in the preparation of the Group's annual financial
statements for the year ended 30 September 2017.
The restatement of prior period interim information is explained
in Note 3 below.
There have been no significant changes to critical accounting
judgements or accounting estimates of amounts reported in prior
financial periods.
Reporting currency
The consolidated financial statements are presented in pounds
sterling (GBP), which is also the Company's functional
currency.
3. Restatement of comparative figures
Comparative figures relating to the six-month period ended 31
March 2017 have been restated in line with the audited accounts for
the year ended 30 September 2017. Restatements relating to the
treatment of 1) IPO and share issue costs originally charged
directly to equity and 2) warrants originally unrecognised, led to
an increase in the prior interim period loss, when compared to that
originally reported on 13 June 2017, of GBP960,000, with associated
restatements to the consolidated statement of comprehensive income,
the consolidated statement of financial position, the consolidated
statement of changes in equity and the consolidated statement of
cashflows, as shown below, with the exception of the consolidated
statement of changes in equity, for which the impact of restatement
is shown on the statement itself. There was no restatement of
revenue, cash and cash equivalents or other assets and
liabilities.
Impact on consolidated income statement:
6 months ended Restatement 6 months ended
31 March 2017 31 March 2017
(as originally reported) (restated)
GBP'000 GBP'000 GBP'000
IPO costs: (529) (960) (1,490)
Operating loss (1,841) (960) (2,801)
Loss before tax (1,776) (960) (2,736)
Loss for the period (1,681) (960) (2,641)
Earnings per share (pence per share) (2.0) (1.1) (3.1)
Impact on consolidated statement of financial position:
31 March 2017 Restatement 31 March 2017
(as originally reported) (restated)
GBP'000 GBP'000 GBP'000
Share premium 6,251 282 6,533
Warrant reserve - 678 678
Retained earnings 2,264 (960) 1,304
Total Equity 12,604 - 12,604
Impact on consolidated statement of cash flows:
6 months ended Restatement 6 months ended
31 March 2017 31 March 2017
(as originally reported) (restated)
GBP'000 GBP'000 GBP'000
Loss for the period (1,681) (960) (2,641)
IPO costs 529 960 1,490
Net cash used in operating activities (1,054) - (1,054)
Net increase in cash and cash equivalents 4,203 - 4,203
4. Revenue
An analysis of the Group's revenue is as follows:
Six month Year ended
period 30 September
ended 31 March
2018 2017 2017
GBP000 GBP000 GBP000
Continuing operations
USA 162 130 310
Rest of World 311 254 873
---------- ---------- -------------
Consolidated revenue 473 384 1,183
========== ========== =============
All revenue is derived from the Group's principal activity,
biomarker research and development.
5. Business segments
Products and services from which reportable segments derive
their revenues
Information reported to the Group's Chief Executive (who has
been determined to be the Group's Chief Operating Decision Maker)
for the purposes of resource allocation and assessment of segment
performance is focused on the sole service which Oxford BioDynamics
sells. The Group's sole reportable segment under IFRS 8 is
therefore that of biomarker research and development.
The Group's non-current assets, analysed by Geographical
location were as follows:
31 March 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Non-current assets
UK 941 563 662
Malaysia 102 94 103
-------- -------- ------------
Total non-current assets 1,043 657 765
======== ======== ============
Information about major customers
The Group's revenues for the periods covered by this report are
derived from a small number of customers, many of which represent
more than 10% of the revenue for the period. These are summarised
below:
Six month period Year ended
ended 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Revenue from individual customers each representing
more than 10% of revenue for the period: 447 321 893
=========== =========== ==============
6. Earnings per share
From continuing operations
The calculation of the basic and diluted earnings per share is
based on the following data:
Six month period Year ended
ended 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Earnings for the purposes of basic earnings
per share being net loss attributable to owners
of the Company (1,132) (2,641) (3,804)
----------- ---------- -------------
Earnings for the purposes of diluted
earnings per share (1,132) (2,641) (3,804)
=========== ========== =============
No No No
Number of shares
Weighted average number of ordinary shares
for the purposes of basic and diluted earnings
per share* 86,918,039 84,590,580 85,272,526
=========== ========== =============
Pence Pence Pence
Earnings per share
Weighted average number of ordinary shares
for the purposes of basic and diluted earnings
per share* (1.3) (3.1) (4.5)
=========== ========== =============
*Potential ordinary shares are not treated as dilutive as the
Group is loss making.
7. Intangible fixed assets
Group Patents Website Software Total
and trademarks development licences
costs
GBP000 GBP000 GBP000 GBP000
Cost
At 1 October 2017 - 11 - 11
Additions 241 14 32 287
Disposals - - - -
---------------- ------------- ---------- -------
At 31 March 2018 241 25 32 298
---------------- ------------- ---------- -------
Amortisation
At 1 October 2017 - - - -
Charge for the period 1 - - 1
---------------- ------------- ---------- -------
At 31 March 2018 1 - - 1
---------------- ------------- ---------- -------
Carrying amount
At 31 March 2018 240 25 32 297
================ ============= ========== =======
At 30 September 2017 - 11 - 11
================ ============= ========== =======
8. Property, plant and equipment
Group Leasehold Office Fixtures Laboratory Total
improvements equipment and fittings equipment
GBP000 GBP000 GBP000 GBP000 GBP000
Cost
At 1 October 2017 269 38 37 1,331 1,675
Additions 2 1 - 150 153
Disposals - - - (21) (21)
Exchange differences 1 - 1 4 6
-------------- ----------- -------------- ----------- -------
At 31 March 2018 272 39 38 1,464 1,813
-------------- ----------- -------------- ----------- -------
Accumulated depreciation
At 1 October 2017 69 23 21 808 921
Charge for the period 14 5 1 136 156
Eliminated on disposals - - - (12) (12)
Exchange differences (1) 1 (1) 3 2
-------------- ----------- -------------- ----------- -------
At 31 March 2018 82 29 21 935 1,067
-------------- ----------- -------------- ----------- -------
Carrying amount
At 31 March 2018 190 10 17 529 746
============== =========== ============== =========== =======
At 30 September 2017 200 15 16 523 754
============== =========== ============== =========== =======
9. Share capital of the Company
31 March 2018 31 March 2017 30 September 2017
Number GBP Number GBP Number GBP
Authorised shares
Ordinary shares of
GBP0.01 each 87,479,973 874,997 86,098,228 860,982 86,098,228 860,982
========== ======= ========== ======= ============= ========
The Company's shares were admitted to trading on the AIM market
of the London Stock Exchange on 6 December 2016. The Company issued
4.5m new shares at a placing price of 158p, raising gross proceeds
of GBP7.1m (before expenses).
The Company has a number of shares reserved for issue under an
equity-settled share option scheme: further details of this are
disclosed in Note 10.
10. Share-based payments
Equity-settled share option scheme
In November 2016, the Company established an Enterprise
Management Incentive ("EMI") share option scheme, under which
options have been granted to certain employees, and a non-employee
option scheme with similar terms, except that options granted under
it do not have EMI status. EMI and non-EMI share options were also
previously granted under a share option scheme established in
October 2008 ("the 2008 Scheme"). The Company does not intend to
grant any further options under the 2008 Scheme. All of the schemes
are equity-settled share-based payment arrangements, whereby the
individuals are granted share options of the Company's equity
instruments, namely ordinary shares of 1 pence each.
The schemes include non-market-based vesting conditions only,
whereby the share options may be exercised from the date of vesting
until the 10(th) anniversary of the grant date. In most cases
options vest under the following pattern: one-third of options
granted vest on the first anniversary of the grant date; one-third
on the second anniversary and one-third on the third
anniversary.
The options outstanding as at 31 March 2018 have exercise prices
in the range of GBP0.34 to GBP1.70.
Options outstanding Six month period Year ended
ended 31 March 30 September
2018 2017 2017
unaudited unaudited audited
Number Number Number
Outstanding at start of period 7,801,716 7,636,716 7,636,716
Granted during the period 160,000 465,000 575,000
Forfeited during the period (151,667) (280,000) (410,000)
Exercised during the period (692,304) - -
------------- ---------- --------------
Outstanding at end of period 7,117,745 7,821,716 7,801,716
============= ========== ==============
Weighted average remaining contractual life
(in years) of options outstanding at the
period end(1) 4.81 3.60 2.93
============= ========== ==============
Options exercisable Weighted Latest
Number of average exercise
options exercise price
price GBP
GBP
At 31 March 2018 6,321,040 0.49 1.58
============= ========== ==============
At 31 March 2017 6,758,916 0.43 1.58
============= ========== ==============
At 30 September 2017 6,813,516 0.45 1.58
============= ========== ==============
Share option expense Six month period Year ended
ended 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Expense arising from share-based
payment transactions 121 230 398
============= ========== ==============
(1) As announced on 13 December 2017, the exercise period of a
total of 4,058,004 non-EMI options was extended, such that the
expiry date of the options concerned, which were all exercisable at
each of the dates reported above, is now 31 December 2022, rather
than 31 December 2017.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR PGUUUAUPRPUG
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