26th Jul 2005 07:00
Henderson Morley PLC26 July 2005 FOR IMMEDIATE RELEASE 26 JULY 2005 HENDERSON MORLEY PLC (AIM) FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2005 The Board of Henderson Morley plc ("Henderson Morley" or "the Company")announces its audited final results for the year to 30 April 2005. Key Points: • The Company continues to work in growing markets • ICVT continues to progress in several disease areas • Fully committed to the negotiation of further licences Commenting, Andrew Knight, Executive Chairman said: "We are fully committed to our ongoing programme of attracting furthercommercial partners to out-license the ICVT platform. These licenses will bringmilestone payments and ultimately, royalties. "Also, we are aware of the need to keep the market and shareholders informed andin May 2005, we commissioned independent research from Growth Equities andCompany Research and this research will be updated on a monthly basis. "I would like to thank shareholders for their continued support." CHAIRMAN'S STATEMENT Financial Summary Turnover for the period under review was £5,735 (2004: £7,623) which related tothe sale of nutraceuticals from the company's websites. Research, developmentand administrative expenses for the year amounted to £844,428 (2004: £772,259),which resulted in a loss of £848,845 (2004: £773,903). Cash at bank at 30 April2005 was £688,725. Review of Operations Overview Henderson Morley continues to work in the exciting field of anti-viral drugdiscovery - a growing market currently at $10 billion per year, and forecast tobe worth $14 billion per year by 2007. The platform technology, ICVT, which was developed by the Company's scientists,continues to progress in several disease areas. The broad anti-viral effects ofICVT mean that it has the potential to treat numerous diseases such as skinwarts, verrucae, pre-cancerous lesions of the genital tract, infections of theskin, eyes and mucous membranes, and various childhood infections. Over the last 12 months, many successful scientific milestones have been met.These include granted patents in the US and Europe; completion of variousformulation studies; the development of a lead formulation and subsequent leadoptimization; proof of concept in human studies against one of the targetdisease areas, as well as the preparation for filing of 4 new patentapplications for new and enhanced formulations. Whilst the scientific program progresses, the Board remains fully committed tothe negotiation of further licenses for the ICVT platform. The engagement ofStrasbourg based licensing consultant Dr Daniel Kirchherr has facilitateddiscussions with several important potential licensees. His previous experienceas Director of Business Development at Johnson and Johnson has brought manyyears of industry experience, giving depth and breadth to the businessdevelopment program. Research The trial being conducted by Croma Pharma is still ongoing but we are unable togive shareholders any further news at the present time. We are in regulardialogue with Croma and they remain totally committed. Issue of Equity During the year, the Board issued and allotted a total of 124,728,283 newOrdinary shares through Placings to institutional investors.The purpose of these Placings is to provide the Company with working capital tocontinue to invest in its research and development and intellectual property. Directors' Share Purchases Andrew Knight purchased a further 2 million shares and chief executive Dr IanPardoe purchased 6,458,240 shares. 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 1600Maxine Barnes Mobile 07860 489571Dominic Barretto Henderson Morley plc and Subsidiary UndertakingsProfit and Loss Account for the Year Ended 30 April 2005 30.4.05 30.4.04 £ £ TURNOVER 5,735 7,623 Cost of sales 17,385 5,607 ___________ ___________GROSS (LOSS)/PROFIT (11,650) 2,016 Administrative expenses 563,233 503,599Research and development 281,195 268,661 ___________ ___________Total administrative expenses 844,428 772,259 ___________ ___________ OPERATING LOSS (856,078) (770,243) Interest receivable andsimilar income 9,820 930 ___________ ___________ (846,258) (769,313) Interest payable andsimilar charges 2,587 4,590 ___________ ___________ LOSS ON ORDINARY ACTIVITIESBEFORE TAXATION (848,845) (773,903) Tax on loss on ordinary activities 67,487 60,280 ___________ ___________ LOSS FOR THE FINANCIAL YEARAFTER TAXATION (781,358) (713,623) Deficit brought forward (2,489,990) (1,776,367) ___________ ___________DEFICIT CARRIED FORWARD £(3,271,348) £(2,489,990) =========== ===========Basic and Diluted Loss perOrdinary Share (0.27p) (0.36p) CONTINUING OPERATIONS None of the company's activities were acquired or discontinued during thecurrent and previous years. TOTAL RECOGNISED GAINS AND LOSSES The company has no recognised gains or losses other than the losses for thecurrent and previous years. Henderson Morley plc and Subsidiary UndertakingsConsolidated Balance Sheet as at 30 April 2005 30.4.05 30.4.04 £ £ £ £ FIXED ASSETS:Intangible assets 121,512 141,565Tangible assets 42,510 82,476 164,022 224,041 __________ __________CURRENT ASSETS:Stocks 2,831 15,013Debtors 128,173 97,396Cash at bank 688,725 87,690 __________ __________ 819,729 200,099 CREDITORS: Amounts fallingdue within one year 104,047 100,643 __________ __________ NET CURRENT ASSETS: 715,682 99,456 __________ __________ TOTAL ASSETS LESS CURRENTLIABILITIES: 879,704 323,497 CREDITORS: Amounts fallingdue after more than one year - 10,044 __________ __________ £879,704 £313,453 CAPITAL AND RESERVES:Called up share capital 417,411 261,500Share premium 3,733,641 2,541,943Profit and loss account (3,271,348) (2,489,990) __________ __________EQUITY SHAREHOLDERS' FUNDS: £879,704 £313,453 ========== ========== Henderson Morley plc and Subsidiary UndertakingsCash Flow Statement for the Year Ended 30 April 2005 30.4.05 30.4.04 £ £ £ £ Net cash outflowfrom operating activities (797,420) (720,140) Returns on investments andservicing of finance 7,233 (3,660) Taxation 60,280 46,883 Capital expenditure 15,394 (16,766) (714,513) (693,683) Financing 1,334,676 764,800 __________ __________Increase in cash in the period £620,163 £71,117 ========== ========== Reconciliation of net cash flowto movement in net funds Increase in cash in the period 620,163 71,117Cash outflow from decrease indebt and lease financing 19,638 15,660 Change in net funds resultingfrom cash flows 639,801 86,777 __________ __________ Movement in net funds in the period 639,801 86,777Net funds/(debt) at 1 May 45,414 (41,363) __________ __________Net funds at 30 April £685,215 £45,414 ========== ========== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HML.L