14th Jul 2006 07:00
Henderson Morley PLC14 July 2006 FOR IMMEDIATE RELEASE 14 JULY 2006 HENDERSON MORLEY PLC (AIM) FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2006 The Board of Henderson Morley plc ("Henderson Morley" or "the Company")announces its audited Final Results for the year to 30 April 2006. Key Points • The Company is in advanced negotiations with two dermatological companies based in North America and Europe for licensing agreements for ICVT; • Henderson Morley wins 'Best Performing AIM Life Science Share'; and • Company is fully committed to negotiation of further licences. CHAIRMAN'S STATEMENT Financial Summary Turnover for the period under review was £2,991 (2005: £5,735) which related tothe sale of nutraceuticals from the Company's websites. Research, developmentand administrative expenses for the year amounted to £797,696 (2005: £844,428),which resulted in a reduced pre-tax loss of £776,011 (2005: £848,845). Cash atbank at 30 April 2006 was £261,256 (2005: £688,725). During the year, theCompany raised £250,000 and since the year end, a further £450,000 was raisedfor additional working capital. The total number of shares in issue is now401,928,632. Review of Operations Overview In March 2006, we announced that the Company had signed a term sheet for apotential ICVT licensing deal with an un-named dermatological pharmaceuticalcompany based in the United States. This potential licence would be for atopical patch formulation for the treatment of all non-genital warts, includingplantar warts or verrucae, and seborrhoeic keratoses in humans; a wart-like skincondition common in the elderly. These contract negotiations are still ongoingas a 30-day extension to 17 August 2006 was announced on 13 July. Following on from this news, we announced that the Company had entered intonegotiations with a second potential licensee. This licence would be for a newapplication of ICVT for the topical treatment of genital and labial herpes andcertain other dysplasias. These negotiations are with a European dermatologicalcompany and relates to a worldwide licence, and we expect to conclude thislicence by the end of July. These negotiations follow months of discussions with numerous potentialpartners, and are testimony to the dedication of the business development teamin pursuing our stated objective of securing licensing agreements with partnerswho can take our technology forwards through all the necessary regulatoryapprovals. We are continuing to develop further applications of ICVT. In addition, we havea strong and varied pipeline of potential products in areas where there isclearly an unmet clinical need. We will continue our strategy of seekingpartners for these applications. In June of this year, the Company was awarded the Best Performing AIM LifeScience Share at the techMARK Mediscience Awards, held in London. Patents The Company now has 25 granted patents in respect of its ICVT technologyplatform with a significant number of other patents filed and under examinationby the patent authorities. Issue of Equity During the year, the Company raised £250,000, followed by a further £450,000after the year end and therefore the Company has issued and allotted a total of68 million new Ordinary shares through placings. The total number of shares inissue now stands at 401,928,632. The purpose of these placings is to provide the Company with working capital tocontinue to invest in its patent portfolio and the ongoing development of ICVT. Outlook This has been an exciting period in the development of Henderson Morley and weare confident of being able to deliver licensing agreements for ICVT which willbring milestone and royalty payments to the Company. We will continue to explore other strategic options for Henderson Morley withinthe drug discovery/biotechnology arena and I look forward to reporting toshareholders as we make further progress. ANDREW KNIGHTExecutive Chairman --ENDS-- Copies of this announcement will be available free of charge to the public atthe Company's registered office at Metropolitan House, 2 Salisbury Road,Moseley, Birmingham, B13 8JS and at the offices of Brewin Dolphin SecuritiesLtd, 34 Lisbon Street, Leeds LS1 4LX for 14 days. Enquiries: HENDERSON MORLEY PLC Tel: 0121 442 4600Andrew Knight, Chairman BREWIN DOLPHIN SECURITIES LTD Tel: 0113 241 0126Neil Baldwin H-B CORPORATE Tel: 020 7538 1166Jon Levinson BISHOPSGATE COMMUNICATIONS LTD Tel: 020 7430 1600Dominic Barretto Mobile 07930 450 156Scott Robertson Henderson Morley plc and Subsidiary Undertakings Consolidated Profit and Loss Account for the Year Ended 30 April 2006 30.4.06 30.4.05 £ £ £ £ TURNOVER 2,991 5,735 Cost of sales 2,059 17,385 ________ ________ GROSS PROFIT/(LOSS) 932 (11,650) Administrative expenses 528,395 563,233Research and development 269,301 281,195 ________ ________ Total administrative expenses 797,696 844,428 ________ ________ OPERATING LOSS (796,764) (856,078) Interest receivable and similar income 21,521 9,820 ________ ________ (775,243) (846,258)Interest payable and similar charges (768) (2,587) ________ ________LOSS ON ORDINARY ACTIVITIESBEFORE TAXATION (776,011) (848,845) Tax on loss on ordinary activities 64,632 67,487 ________ ________ LOSS FOR THE FINANCIAL YEARAFTER TAXATION (711,379) (781,358) ________ ________ DEFICIT FOR THE YEAR (711,379) (781,358) ________ ________ Basic and Diluted Loss perOrdinary Share (0.20p) (0.27p) CONTINUING OPERATIONS None of the Company's activities were acquired or discontinued during thecurrent year or previous year. TOTAL RECOGNISED GAINS AND LOSSES The company has no recognised gains or losses other than the losses for thecurrent year or previous year. Henderson Morley plc and Subsidiary UndertakingsConsolidated Balance Sheet 30 April 2006 30.4.06 30.4.05 £ £ £ £FIXED ASSETSIntangible assets 101,460 121,512Tangible assets 38,645 42,510 ________ ________ 140,105 164,022 CURRENT ASSETSStocks 1,708 2,831Debtors 118,059 128,173Cash at bank 261,256 688,725 ________ ________ 381,023 819,729 CREDITORSAmounts falling due within one year 110,303 104,047 ________ ________ NET CURRENT ASSETS 270,720 715,682 ________ ________TOTAL ASSETS LESS CURRENTLIABILITIES 410,825 879,704 ________ ________CAPITAL AND RESERVESCalled up share capital 479,911 417,411Share premium 3,913,641 3,733,641Profit and loss account (3,982,727) (3,271,348) ________ ________SHAREHOLDERS' FUNDS 410,825 879,704 ________ ________ Henderson Morley plc and Subsidiary UndertakingsConsolidated Cash Flow Statement for the Year Ended 30 April 2006 30.4.06 30.4.05 £ £ £ £Net cash outflowfrom operating activities (753,358) (797,420) Returns on investments andservicing of finance 20,753 7,233 Taxation 67,487 60,280 Capital expenditure (11,775) 15,394 ________ ________ (676,893) (714,513) Financing 235,083 1,334,676 ________ ________(Decrease)/Increase in cash in the period (441,810) 620,163 ________ ________ ________________________________________________________________________________ Reconciliation of net cash flow to movement in net funds (Decrease)/Increasein cash in the period (441,810) 620,163Cash outflowfrom decrease in debt and lease financing 3,510 19,638 ________ ________Change in net funds resultingfrom cash flows (438,300) 639,801 ________ ________Movement in net funds in the period (438,300) 639,801Net funds at 1 May 685,215 45,414 ________ ________Net funds at 30 April 246,915 685,215 ________ ________ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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