23rd Oct 2008 07:00
23 October 2008
HENDERSON MORLEY PLC
(AIM: HML)
FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2008
The Board of Henderson Morley plc ("Henderson Morley" or "the Company"), the AIM quoted drug discovery company, announces its final results for the year to 30 April 2008.
HIGHLIGHTS
Collaborative research agreement and option to licence for KHV vaccine, with Schering Plough Animal Health;
Schering to pay undisclosed payments towards the development of the vaccine over a 15 month period;
Field studies progressing well in KHV vaccine;
Collaborative research agreement signed with Australian Centre for Vaccine Development for Cytomegalovirus and Epstein Barr virus vaccines;
Feline herpes treatment study ongoing;
Studies completed by Systems Biology Ltd (at no cost to HML) indicate potent stimulation of immune cells by PREPS and L-particles;
Molecular virology studies on schedule; and
Licensing efforts progressing well.
Commenting on today's results, Executive Chairman, Andrew Knight said: "We are continuing to develop new and innovative advances for our technologies, and we are encouraged by the level of response from potential partners and licensees, especially in the animal health sector. We expect to bring further news in this regard in the near future. "
---ENDS---
ENQUIRIES:
HENDERSON MORLEY PLC 0121 442 4600
Andrew Knight, Chairman
BISHOPSGATE COMMUNICATIONS LTD 0207 562 3350
Maxine Barnes
Nick Rome
BREWIN DOLPHIN INVESTMENT BANKING 0113 241 0126
Neil Baldwin
HYBRIDAN LLP 0203 159 5085
Claire Noyce/Stephen Austin
Further information on Henderson Morley plc can be accessed through the Company's website at www.henderson-morley.com
Notes to Editors:
Henderson Morley was founded in 1996 with the objective of developing its anti viral application (Ionic Contra Viral Therapy (ICVT). ICVT is the Lead Platform and has been developed in-house and HML wholly owns the patent IPR.
HENDERSON MORLEY PLC AND SUBSIDIARY UNDERTAKINGS
Chairman's Statement for the Year Ended 30 April 2008
Financial Summary
Turnover for the period under review was £16,468 (2007:£19,251) which, after expenses and R&D costs, showed a pre tax loss of £1,304,528 (2007: £928,064). Cash at Bank as at 30 April 2008 was £701,269 (2007: £1,478,460). The total number of shares in issue is now 575,261,963.
Overview
The Company has been very active in the period under review and, amongst other events; we have signed a research and option agreement with one of the world's major pharmaceutical companies, Schering Plough, with whom we are continuing to develop a strong relationship.
As I reported in my letter to shareholders in May 2008, the Company has a very significant pipeline of both clinical and pre-clinical products, a factor which is not, I believe, reflected in our current stockmarket valuation.
Henderson Morley continues discussions with partners and potential partners for its proprietary technologies. Below I set out the current status of these projects as far as I am able:.
In order to define more accurately the company's areas of operation, we have formed two distinct divisions - Animal Health and Human Health.
Animal Health Division
Aqua Health
Koi Herpes Virus ("KHV")
Just before the end of the financial year, we signed an agreement with Schering Plough. This is a development agreement with an option to enter into an exclusive worldwide commercial licence for our Koi Carp herpes vaccine. We have been developing a vaccine against this virus which decimates Koi, a fish species kept by breeders and enthusiasts around the world.
Tests are ongoing in international centres, and initial results are very encouraging. We will bring shareholders further news on this trial by the end of the calendar year. Sophisticated blood tests, which have also been developed by Henderson Morley, are being used as part of the studies.
Feline Herpes Virus ("FHV")
Clinical studies being run by Triveritas, a prestigious specialist animal health contract research organisation, continue to examine the use of ICVT topical drops in the treatment of FHV. We will use the trial data to help procure a licence with a sales and distribution partner. Whilst these clinical studies have been slower than we had originally anticipated, we are confident of a satisfactory outcome.
Cancer Immunotherapy - Canine
We are continuing with our collaboration with the largest animal cancer research and treatment centre in North America and will report further on this as the programme continues.
Human Health Division
The Australian Centre for Vaccine Development (ACVD)
The collaborative research agreement signed with ACVD is to participate in the continuing development of a vaccine targeted at preventing Cytomegalovirus (CMV) and Epstein Barr disease. The molecular virology laboratory at Henderson Morley, under the leadership of Dr John Burden, has been very productive. PREPS and L-particles have been engineered to express a variety of antigens targeted at both infection and malignant disease; Dr Burden's work has been pivotal in the collaborative research project with ACVD and is progressing well. It is anticipated that the candidate vaccine will be ready for more detailed pre-clinical studies in Australia, funded by ACVD, by the end of the year.
Systems Biology Laboratory UK Ltd ("SBL")
The Company announced a collaborative research agreement with SBL which has now concluded. The studies, which were completed at no cost to Henderson Morley, examined the role of PREPS and L-particles in the stimulation of specific immune cells. We are pleased to report that these detailed and comprehensive studies have demonstrated that PREPS and L-particles have potent immunostimulatory properties and are delivered in high concentration to dendritic cells. This bodes well for the future use of the platform as a cancer immunotherapy, as it is essential for an immunotherapy to deliver antigen to dendritic cells. We are pleased with the positive outcome of these studies and will use the data to aid ongoing licensing discussions with pharmaceutical partners.
Patent Update
We continue to extend and protect our patent portfolio and I am pleased to advise shareholders that we now have 45 granted patents with 41 pending and four allowed. The four allowed are likely to be granted within the next month.
Outlook
We are very encouraged by the progress we have made this year. To have secured the agreement with Schering Plough has been an exciting development for us and one which we expect to convert to a licence before the end of the option period at the end of July 2009. We have a good working relationship with Schering and are exploring the potential of working together with them on other disease areas.
Our redevelopment of the laboratory in Birmingham is now complete and we are able to undertake more research from this facility. We will continue to invest in this area as necessary to ensure that we continue to exploit our current pipeline.
We continue to have discussions with a number of different pharmaceutical companies both in the animal and human health arena with a view to the granting of an early licence.
ANDREW KNIGHT
Executive Chairman
22 October 2008
HENDERSON MORLEY PLC AND SUBSIDIARY UNDERTAKINGS
Consolidated Income Statement for the Year Ended 30 April 2008
|
|
|
|
30.4.08 |
|
30.4.07 |
|
|
|
£ |
£ |
£ |
£ |
|
|
|
|
|
|
|
|
CONTINUING OPERATIONS |
|
|
|
|
|
|
Revenue |
|
|
16,468 |
|
19,251 |
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
(503) |
|
(1,905) |
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
15,965 |
|
17,346 |
|
|
|
|
|
|
|
|
Administrative expenses |
|
839,163 |
|
653,185 |
|
|
Research and development |
|
528,118 |
|
327,674 |
|
|
Total administrative expenses |
|
|
(1,367,281) |
|
(980,859) |
|
|
|
|
|
|
|
|
OPERATING LOSS |
|
|
(1,351,316) |
|
(963,513) |
|
|
|
|
|
|
|
|
Finance costs |
|
|
(617) |
|
(604) |
|
|
|
|
|
|
|
|
Finance income |
|
|
47,405 |
|
36,053 |
|
|
|
|
|
|
|
|
LOSS BEFORE TAX being the retained loss for the year attributed to the members of Henderson Morley Plc. |
|
|
(1,304,528) |
|
(928,064) |
|
|
|
|
|
|
|
|
Tax |
|
|
98,857 |
|
45,364 |
|
|
|
|
|
|
|
|
LOSS FOR THE YEAR |
|
|
(1,205,671) |
|
(882,700) |
|
|
|
|
|
|
|
|
Earnings per share expressed in pence per share: Basic & Diluted |
|
|
(0.24p) |
|
(0.20p) |
|
|
|
|
|
|
|
All amounts relate to continuing activities.
HENDERSON MORLEY PLC AND SUBSIDIARY UNDERTAKINGS
Consolidated Balance Sheet as at 30 April 2008
|
|
|
30.4.08 £ |
30.4.07 £ |
|
ASSETS NON-CURRENT ASSETS |
|
|
|
|
Goodwill |
|
58,964 |
58,964 |
|
Intangible assets |
|
31,872 |
37,184 |
|
Property, plant and equipment |
|
166,133 |
74,500 |
|
|
|
256,969 |
170,648 |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Inventories |
|
200 |
400 |
|
Trade and other receivables |
|
99,293 |
60,661 |
|
Tax receivable |
|
98,857 |
77,679 |
|
Cash and cash equivalents |
|
701,269 |
1,478,460 |
|
|
|
899,619 |
1,617,200 |
|
|
|
|
|
|
LIABILITIES CURRENT LIABILITIES |
|
|
|
|
Trade and other payables |
|
199,614 |
89,412 |
|
Financial liabilities - borrowings Bank overdrafts |
|
1,483 |
8,311 |
|
|
|
201,097 |
97,723 |
|
NET CURRENT ASSETS |
|
698,522 |
1,519,477 |
|
|
|
|
|
|
NET ASSETS |
|
955,491 |
1,690,125 |
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
Called up share capital |
|
719,078 |
614,911 |
|
Share premium |
|
6,307,511 |
5,940,641 |
|
Retained earnings |
|
(6,071,098) |
(4,865,427) |
|
TOTAL EQUITY |
|
955,491 |
1,690,125 |
HENDERSON MORLEY PLC AND SUBSIDIARY UNDERTAKINGS
Consolidated Statement of Changes in Equity for the Year Ended 30 April 2008
|
|
Called up share capital
|
Share premium account £
|
Retained Earnings £
|
Total Equity £ |
|
Balance 1 May 2006 |
479,911 |
3,913,641 |
(3,982,727) |
410,825 |
|
Issue of shares (net of issue costs) |
135,000 |
2,027,000 |
- |
2,162,000 |
|
Loss for the year |
- |
- |
(882,700) |
(882,700) |
|
Balance 30 April 2007 |
614,911 |
5,940,641 |
(4,865,427) |
1,690,125 |
|
Issue of shares (net of issue costs) |
104,167 |
366,870 |
- |
471,037 |
|
Loss for the year |
- |
- |
(1,205,671) |
(1,205,671) |
|
Balance 30 April 2008 |
719,078 |
6,307,511 |
(6,071,098) |
955,491 |
HENDERSON MORLEY PLC AND SUBSIDIARY UNDERTAKINGS
Consolidated Cash Flow Statement for the Year Ended 30 April 2008
|
|
|
30.4.08 |
30.4.07 |
|
|
|
£ |
£ |
|
Cash flow from operating activities |
|
|
|
|
Cash generated from operations |
|
(1,227,185) |
(929,750) |
|
Interest paid |
|
(617) |
(604) |
|
Tax credits received |
|
77,679 |
32,317 |
|
|
|
|
|
|
Net cash from operating activities |
|
(1,150,123) |
(898,037) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Purchase of tangible fixed assets |
|
(161,508) |
(62,261) |
|
Sale of tangible fixed assets |
|
1,400 |
- |
|
Interest received |
|
47,405 |
36,053 |
|
|
|
|
|
|
Net cash from investing activities |
|
(112,703) |
(26,208) |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Amount introduced by directors |
|
21,426 |
- |
|
Amount withdrawn by directors |
|
- |
(14,521) |
|
Issue of new shares net of expenses |
|
471,037 |
2,162,000 |
|
|
|
|
|
|
Net cash from financing activities |
|
492,463 |
2,147,479 |
|
|
|
|
|
|
(Decrease)/Increase in cash and cash equivalents |
|
(770,363) |
1,223,234 |
|
Cash and cash equivalents at beginning of year |
|
1,470,149 |
246,915 |
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
699,786 |
1,470,149 |
|
|
|
|
|
|
|
|
|
|
The financial statements were approved by the Board of Directors on 22 October 2008 and were signed on its behalf by:
A N Knight - Director
HENDERSON MORLEY PLC AND SUBSIDIARY UNDERTAKINGS
Notes to the Financial Statements for the Year Ended 30 April 2008
LOSS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares.
Reconciliations are set out below.
|
|
Earnings £ |
30.4.08 Weighted average number of shares |
Per- share amount pence |
|
Basic and Diluted EPS |
|
|
|
|
Earnings attributable to ordinary shareholders |
(1,205,671) |
495,809,909 |
(0.24p) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings £ |
30.4.07 Weighted average number of shares |
Per- share amount pence |
|
Basic and Diluted EPS |
|
|
|
|
Earnings attributable to ordinary shareholders |
(882,700) |
443,451,919 |
(0.20p) |
|
|
|
|
|
Financial information
The financial information set out in this preliminary statement does not comprise Henderson Morley statutory accounts within the meaning of Section 240(5) of the Companies Act 1985. The statutory accounts of Henderson Morley for the year ended 30 April 2008 have been finalised on the basis of the financial information presented by the Directors in this preliminary statement and will be delivered to the Registrar of Companies for England and Wales and will be published and sent to shareholders in due course.
Henderson Morley has produced its statutory accounts for the year ended 30th April 2008 in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"). Whilst the financial information included in this preliminary statement has been computed in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS.
The Company confirms that its report and accounts will be posted to shareholders shortly and will also be available for download from the Company's website at www.henderson-morley.com
The AGM will be held on the 19 November 2008 at 12 noon.
Related Shares:
HML.L