18th Jun 2008 07:00
CELSIS INTERNATIONAL PLC
("Celsis", "the Company" or "the Group")
Preliminary Results
for the year ended 31 March 2008
Record revenues and profits at celsis
18 June 2008 - Celsis International plc, the international life sciences products and laboratory services company, today announces its preliminary results for the year ended 31 March 2008.
Jay LeCoque, Chief Executive Officer of Celsis, commented:
"Today we have reported another highly successful year at Celsis, representing our sixth successive year of mid-teens profit growth on the back of strong revenue growth. With the acquisition of In Vitro Technologies now fully integrated, Celsis has broadened its product offering and the more profitable IVT products have significantly improved Group margins.
Celsis is better positioned to accelerate profitable revenue growth, both organically and by acquisition, than at any time in its history. We operate in healthily growing markets and our products provide customers with much needed savings in time and cost. With significant investment in new technologies and in expanding our sales and marketing infrastructure, Celsis is well positioned to maintain its track record of robust growth."
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Enquiries: |
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Celsis International plc |
Tel: +44 (0) 1223 598 428 |
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Jay LeCoque, Chief Executive Officer Christian Madrolle, Finance Director Jenny Woolway, Corporate Communications |
(+44 (0) 20 7831 3113 on 18 June 2008) |
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Financial Dynamics |
Tel: +44 (0) 20 7831 3113 |
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David Yates |
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Jonathan Birt |
A presentation and conference call will be held for analysts at Financial Dynamics at 9.30am today, Wednesday 18 June 2008. Please ensure that if you wish to join the conference call you do so 5 minutes before (9:25am) the start of the briefing. Please call Gemma Cross Brown at Financial Dynamics on 0207 269 7125 for further details. A recording will be available on the Company's website from 19 June.
Notes to editors
Celsis International plc
Celsis International plc is a leading international provider of innovative life science products and laboratory services to the pharmaceutical and consumer products industries. Each Celsis division has the capacity to deliver substantial time and cost savings to its customers, in addition to ensuring product quality and safety for consumers. Celsis' extensive client base includes many of the world's leading pharmaceutical and consumer products companies. The Company is listed on the London Stock Exchange (CEL.L).
Celsis Rapid Detection division utilises proprietary enzyme technology to develop and supply diagnostic testing instruments and consumables for the rapid detection of microbial contamination in pharmaceutical and consumer products. These rapid testing systems provide significant economic value by reducing the time it takes to test and release raw materials, in process and finished goods to market.
Celsis Analytical Services division provides cost effective outsourced laboratory testing services to pharmaceutical companies. Its comprehensive service offerings include a full spectrum of laboratory services from drug development and discovery to analytical chemistry and biological sciences to stability storage and testing.
Celsis In Vitro Technologies (Celsis IVT) employs proprietary expertise in hepatocyte (liver cell) technology to supply in vitro testing products to the pharmaceutical industry. Celsis IVT's consumable testing products screen drug compounds for liver toxicity early in the drug discovery process, thereby reducing the time and cost of further development or trial on those compounds which will not be properly metabolised by the human liver.
Further information can be found on its website at www.celsis.com.
Non-Executive Chairman's and Chief Executive's Review
Overview and Summary of Results
This past year has been a record one for Celsis in both revenues and profits and a significant year in the evolution of the Company. Our strategy to provide customers with time and money-saving new technologies continues to build momentum and our experienced management team and talented employees around the world enable Celsis to sustain and post record results. Following the first full year of ownership, and successful integration of our In Vitro Technologies division, Celsis has consolidated its key functions, including global marketing, at its Chicago facility and we are seeing the benefits of having the business centrally managed from one head office. Celsis continues to build and consolidate its position as a leading provider of life science products and services to the pharmaceutical and consumer product industries.
During the past year, 61% of Celsis' revenues came from the product sales from our Rapid Detection and In Vitro Technologies divisions with the remaining 39% coming from our Analytical and Drug Development services. Considering the accelerating growth rates of our products businesses, we expect the percentage of our product sales to continue to increase in the years to come.
Celsis is better positioned to generate revenue and profit growth both organically and by acquisition than at any time in its history. Each of our divisions has excelled in creating and expanding profitable businesses by offering customers substantial time and cost savings in addition to ensuring product quality and safety for consumers. At the same time, our divisional cross selling capabilities have increased as we provide product and services offerings to a broader section of the pharmaceutical and consumer products industries.
For the year ended 31 March 2008, we are pleased to announce revenues increased 18.2% to $56.1 million (2007: $47.4 million) and from an organic growth perspective, revenues increased 9% to $56.1 million (2007: $51.4 million including $13.3 million pro-rated for a full 12 months of IVT revenues). Profit before taxation and amortisation increased 16.2% to $10.7 million (2007: $9.2 million). EBITDA increased 21.0% to $13.3 million (2007: $11.0 million). Our gross margin increased to 68.6% (2007: 65.7%), accelerating as product sales increase as a proportion of our total revenues.
Celsis Rapid Detection
Celsis' Rapid Detection division provides testing systems to more rapidly detect microbial contamination (the presence of bacteria or other organic contaminants in manufactured products) than older more traditional technologies such as agar plates. Traditional agar plates can take up to 7 days to provide a confirmation of "no growth" whereas Celsis' systems can provide a "no growth" confirmation in just 24 hours. Celsis' rapid detection systems are currently addressing an industrial market estimated to be approximately $200 million and growing at 12% to 15% per year. New applications and technologies will increase this market much faster by expanding the numbers of testing procedures that can be transitioned from traditional agar testing to rapid testing systems.
By reducing its customers' manufacturing cycle times by several days, the Celsis rapid detection system can save valuable working capital in everything from a reduced need for raw materials and safety stock, lower finished product inventory levels and a decrease in warehouse space. These reductions in working capital materially increase the efficiency and productivity of facilities that use Celsis' technology, thereby delivering a measurable financial benefit to our customers. In addition, if there is a product contamination episode, Celsis' technology alerts customers that corrective action is required in 24 hours vs multiple days, using traditional agar methods, which is also of significant financial and potential brand value to Celsis' customers.
Revenues from the Rapid Detection division increased 22.9% to $21.7 million (2007: $17.7 million) and are now 38.7% of Group revenues. Instrument placements were strong across all market segments and consumable reagents showed healthy increases in new and existing customer sites. Recurring consumable reagents now represent 86% of the Rapid Detection division's revenues demonstrating the inherent strength and long term potential of this business.
Our RNA based rapid detection assays are in test market evaluations with key customers and we expect to commercially launch this important new product offering within the year. These new tests provide customers with specific organism information to allow significantly faster actionable intelligence during microbial contamination episodes. Currently this specific identification using traditional methods can take 3 to 5 days following a contamination event. Celsis' new RNA based tests can provide this information in less than two hours, a significant benefit to customers. The new tests run on our existing instrument platform and therefore we expect this division to benefit from the already very large installed instrument customer base that can immediately adopt this new RNA based testing system.
Celsis In Vitro Technologies
The pharmaceutical industry is under unprecedented pressure to improve its research and development productivity. As such, the number of drug compounds under development has expanded significantly over the past years. It is critical that companies progress new compounds into viable drug candidates as quickly as possible. Days and weeks saved early in the drug development process can mean millions of dollars saved in the overall cost of bringing a new drug to market.
Celsis In Vitro Technologies (IVT) division helps accelerate drug development by providing in vitro testing products and drug development services to the pharmaceutical industry. IVT's primary product offering is cryo-preserved human liver cells that allow its customers to determine how well a particular drug compound will be metabolised by the human liver. FDA guidance released in September 2006 has outlined their acceptance of cryo-preserved cells as equivalent to fresh liver cells and Celsis views this as an important development in the continued evolution and expansion of this new business. IVT's in vitro products screen drug compounds early in the drug discovery process, thereby reducing the time and cost of drug development. The market for in vitro products and development services is estimated to be approximately $600 million and is growing at 15% per year.
Revenues from our IVT division increased 15.8% to $15.4 million (2007: $13.3 million pro-rated for the 12 month period) and now represent 27.4% of Group revenues. Sales of our liver cell based products, which represent 80% of IVT's revenues, were up solidly following the expansion of our commercial team in Europe and North America. IVT is also expanding its geographic reach into Asia and Latin America by leveraging Celsis' commercial infrastructure of direct sales and distributor networks in these important and growing regions. The recent launch of our novel microsome product offering, InVitroCYPTM, utilising high, moderate and custom enzyme activity, offers an even greater market potential for our liver cell based product portfolio.
Sales of Development Services, which are 20% of IVT's overall revenues, are expected to increase as we continue to benefit from the cross selling activities and merging of internal sales contacts of our Analytical Services and Rapid Detection divisions. In addition to leveraging our Analytical Services direct sales team, we have also recently employed a dedicated business development resource to focus on Celsis Development Services in response to the increasing demand for these services.
Celsis Analytical Services
Celsis' Analytical Services division provides outsourced laboratory testing services to pharmaceutical companies to ensure the safety, stability and chemical composition of their products. The trend by pharmaceutical companies to outsource their analytical testing, especially in the US, has accelerated in recent years to an estimated market size of over $2 billion.
The outsourcing of analytical services saves our clients' headcount and laboratory space and allows them to focus their resources on research and drug discovery and development. In addition to providing these important benefits of outsourcing, Celsis has also carved out an important niche in this large market by providing faster results to its customers. The Company can provide results in just 10 days, with a very focused customer service offering, compared to an industry standard of 15 days to 20 days, with little to no customer service. Celsis can therefore secure a price premium for this added value.
Revenues from our Analytical Services division decreased 7.1% to $19.0 million (2007: $20.4 million) and now represent 33.9% of Group revenues. This follows an excellent 26% increase in performance for this division in 2007 as well as a modest slow down in our New Jersey based chemistry business unit. Plans are in place to generate new and extend existing customer contracts and we remain confident in the underlying strength of our services offering to the pharmaceutical industry.
The Analytical Services division is focused on remaining at the forefront of compliance and regulatory changes to support its customers. Most recently seen with the changes to the US Pharmacopeia in the area of residual solvent changes, where this division has pro-actively kept its customers up-to-date on changes through WebEx meetings, white paper articles and electronic communication. This division is committed to providing its customers with the best laboratory services to support their businesses.
Financial Review
The financial results presented below are prepared in accordance with the Group's International Financial Reporting Standards (IFRS) accounting policies.
As in the previous year our Group's foreign exchange policy has continued to mitigate currency fluctuations resulting from the relative value of the US Dollar versus the Euro during most of the financial year under review. The US Dollar is the functional currency providing the best visibility on the Group's overall performance, as a large component of the Group's revenues arise in the Americas and Asia.
Results
Turnover, profit before tax and EBITDA reached record levels this year. Total revenues for the year ended 31 March 2008 were up 18.2% at $56.1 million against $47.4 million the previous year. Group profit before taxation was up 16.0% to $10.0 million and operating margins increased to 19.0%, compared with a profit before tax of $8.7 million and operating margins of 18.8% in the previous year. EBITDA was up 21.0% to $13.3 million against $11.0 million last year. Profit before tax and amortisation of intangible assets was up 16.2% to $10.7 million compared to $9.2 million the previous year.
Gross margin
The Group's gross margin for the year under review increased to 68.6% against 65.7% the previous year, reflecting the increased proportion of the high margin IVT division's revenue in total Group revenues.
Operating expenses
Operating costs, excluding research and development, increased 24.9% from $21.8 million last year to $27.2 million this year. The full year impact of the IVT division ownership versus 8.3 months last year contributed $3.4 million to this increase. Underlying costs from continuing operations of the Rapid Detection and Analytical Services divisions were up 9.2%, and the weakening of the US Dollar versus the Sterling and the Euro have continued to have a moderate translational impact.
Sales and marketing expenses represented 38.6% of revenues, against 35.2% the previous year. This was due to increased expenditure on sales, marketing and support staff particularly in the Rapid Detection division in line with the revenue growth of this division. This was also due to the increased sales force presence particularly in North America and Europe in the IVT division. Administrative expenses decreased to 10.0% of revenues versus 10.7% in the previous year.
Research and development efforts have continued to focus on the development of the new nucleic acid technology and a new recombinant luciferase kit to replace the native luciferase kit for the Rapid Detection division. Focus has been given to the development of a new preservation technology to increase the viability of fresh hepatocytes which will open up new markets in Europe and Asia for the IVT division. Overall R&D expenditure, after adding back the development costs capitalised under IAS38 ($1.2 million in 2008 against $0.7 million in 2007), has increased to $1.7 million this year against $1.1 million last year.
Profitability
The Group's operating profit was $10.7 million (2007: $8.9 million) representing an increase of 19.6% on the prior year. Profit before tax increased by 16.0% to $10.0 million against $8.7 million last year. The profit before tax (excluding intangible assets amortisation) increased by 16.2% to $10.7 million against $9.2 million the previous year. EBITDA increased 21.0% to $13.3 million (2007: $11.0 million).
Goodwill and intangible asset amortisation
The Board reviewed the carrying value of goodwill and separately recognised acquired intangible assets at 31 March 2008 and confirmed that no provision for impairment was necessary. The amortisation charged during the year on intangible assets amounted to $0.6 million (2007: $0.5 million).
Financial income and expense
The financial expense for the year amounted to $0.8 million (2007: $0.7 million). This increase reflects the full year impact of the interest relating primarily to the remaining term loan facility, which at the beginning of the year under review was $4.2 million, and a $5.5 million revolving credit facility obtained when the Group acquired IVT.
The financial income for the year amounted to $0.1 million (2007: $0.4 million) due to lower interest received from the cash invested in short term deposits after the acquisition of IVT.
Taxation
The Group tax charge increased to $3.3 million (2007: $2.7 million) representing 32.8% of profit before tax (2007: 31.6%). This amount includes the utilisation of $1.5 million of deferred tax assets previously recognised in 2003 when the Group started to offset past tax losses carried forward with current profits. The basic tax charge for the year when excluding the impact of the deferred tax assets is $1.8 million (17% of profit before tax). As a result of the completion of the deferred tax utilisation we expect the Group's tax charge to be in the range of 23%-25% in the coming years.
At the balance sheet date the net deferred tax liability was $0.5 million, mainly due to the temporary difference between the depreciation of the intangible assets arising on acquisition for US tax purpose and the accounting depreciation.
Earnings per share
Basic earnings per share (EPS) in 2008 increased by 13.9% to 30.5 cents per share (2007: 26.8 cents per share). Basic Pre-tax earnings per share in 2008 increased 15.9% to 45.4 cents (2007: 39.2 cents per share).
Adjusted earnings per share - (Non GAAP measure)
Adjusted earnings per share (excluding amortisation of intangible assets) increased 14.3% to 33.38c (2007: 29.21c).
Both the pre-tax and post-tax EPS growth percentages have accelerated following the IVT acquisition in July 2006, making the acquisition accretive to earnings in its first full year of ownership.
Capital expenditure
Tangible fixed asset additions in the year amounted to $4.6 million (2007: $2.3 million) following the relocation of Celsis' US headquarters, in Chicago, to larger premises. This allowed the US finance teams, previously based in New Jersey and Baltimore, and the Rapid Detection logistics and instrument services department, from New Jersey, to be centralised in Chicago. All R&D activities are now also consolidated in Chicago and two new laboratories, including a manufacturing pilot plant, have been commissioned during the year. The increase in capital expenditure also reflects the closure of the Landgraaf Rapid Detection manufacturing centre in Holland and its transfer to Neuss, near Dusseldorf in Germany, where a smaller but more efficient manufacturing site has been commissioned with state of the art production equipment.
Intangible fixed asset additions in the year amounted to $1.3 million (2007: $0.9 million).
Cash flow
The cash flow from operating activities has substantially increased from $8.4 million to $12.2 million. Available cash resources have increased from $5.9 million to $6.4 million and cash, net of borrowings, was $1.3 million at the balance sheet date. The borrowings were originally a five year term loan of $8.0 million and a five year revolving credit facility of $5.5 million, both from Barclays Bank plc.
The $8.0 million term loan has been completely repaid during the year, ahead of its original end date in 2011 following a total payment of $4.2 million in the year. An additional payment of $0.3 million has also reduced the drawn revolving credit facility to $5.2 million, and it is anticipated that this revolving credit facility will be fully repaid ahead of its 2011 normal maturity date. During the year, the Group has continued to operate an interest rate swap which effectively fixes the interest rate on the term loan and revolving credit facilities for the period that the term loan and credit facilities are utilised. The interest rate on the unhedged portion of the term loan and revolving credit facility is set at 0.9% above LIBOR.
Balance sheet
The inventory value has increased to $7.5 million (2007: $7.4 million). Net trade receivables increased to $11.0 million against $8.1 million. Trade receivables have increased as a result of the shipment of a number of large orders received by the IVT division during February and March, and also from strong activity during the last quarter of the year in Europe, Asia and Latin America from the Rapid Detection division. Other receivables and prepayments were flat at $1.8 million.
The total receivables increased from $10.0 million last year to $12.8 million this year. The total recognised unutilised net deferred tax asset decreased from $1.0 million to a net deferred tax liability of $0.5 million. Current liabilities increased to $8.3 million against $8.1 million last year.
Non-current liabilities have decreased from $10.4 million last year to $9.0 million this year reflecting the term loan and revolving credit facilities earlier redemption.
Total payables have decreased from $18.5 million last year to $17.2 million this year. This decrease in creditors is mostly due to the early redemption of the bank loan facilities previously discussed.
Trade payables and other liabilities have increased from $6.4 million to $8.2 million as a result of an increased activity level and the relative depreciation of the US dollar against the Euro and the Sterling currencies which form a substantial part of our trade payables.
The deferred tax liabilities have increased from $1.4 million to $2.1 million due to the temporary difference between the amortisation of the goodwill arising from the IVT acquisition for US tax purposes and the limited accounting amortisation of some identifiable elements of this goodwill.
Total equity has increased 16.1% (2007: 18.9%) during the year moving from $44.3 million to $51.5 million.
The Group's balance sheet has strengthened during the year under review and presents a moderate amount of leverage taken of $5.1 million (the initial bank loan facilities obtained in 2006 were $13.5 million). Investment of prior years' cash resources in the IVT acquisition and its successful integration have contributed to increase shareholders' funds through the increased profit generated by this acquisition.
The amount of long term debt is decreasing faster than planned, resulting in the strengthening of the balance sheet which leads the Group to expect that it will be able to finance its operating costs, together with normal levels of capital expenditure and other commitments including tax, from its existing resources.
The Directors believe that the Group's strong balance sheet and ongoing cash generation leave it well placed to meet its existing borrowing obligations and enable it to fund future investment plans.
Treasury
The Group maintains treasury control systems and procedures to monitor foreign exchange, interest rates, liquidity, credit and other financial risks. Liquid assets surplus to the immediate operating requirements of the Group are invested and managed centrally by the Group Head Office.
Exchange rates
Euro and Sterling-denominated transaction exposure arising from normal trade flows, both in respect of external and inter-company trade, is not hedged against US Dollar equivalents. The Group's policy is to minimise the exposure of Euro and Sterling-operating subsidiaries to transaction risk by matching local currency income with local currency costs. For this purpose inter-company trading transactions are matched centrally and inter-company payment terms are managed to reduce risk. The Euro-Sterling revenue exposure to currency fluctuations are balanced by the Euro-Sterling denominated costs of the Group.
Financial position
The Group continues to benefit from strong positive cash flow from operating activities with net debt decreasing significantly in the year. The Group has suffered no loss of principal, or any significant interest payable fluctuation as a result of the recent credit crisis.
Celsis aims to maintain a robust financial position through focused revenue growth and the rigorous control of costs and strong financial management of all aspects of its business. This approach enables Celsis to generate sufficient cash to make the appropriate investments in its business and also to take advantage of external opportunities as and when these arise.
Outlook
We are pleased with the overall performance of the Group in delivering robust revenue and profit growth for another year. We have the capabilities in place to expand our growing business with new products and services that address unmet needs of our customer base. New technologies such as our RNA-based detection assays and InVitroCYPTM microsomes are taking us into new and highly promising business areas. Our RNA based rapid detection assays are in test market evaluations with key customers and we expect to commercially launch this important new product offering within the year.
We operate in healthily growing markets and the business opportunities for our products and services continue to expand as our clients become increasingly focused on accelerating the development process and reducing costs. We are confident that we can grow our top line revenues as well as provide consistent profit growth as we benefit from targeted investment in sales and marketing and product innovation. We continue to utilise a disciplined approach to identify potential acquisition opportunities and will focus only on projects that deliver long-term shareholder value.
We would like to take this opportunity to thank all of our employees for their many individual and combined contributions towards making this past year a success. We also would like to thank our new and existing shareholders for their support and continued confidence in Celsis.
Jay LeCoque, Chief Executive Officer
Jack Rowell, Non-Executive Chairman
18 June 2008
Consolidated Income Statement
for the year ended 31 March 2008
|
Total |
Total |
||
|
Year to 31 |
Year to 31 |
||
|
Notes |
March 2008 (audited) $'000 |
March 2007 (audited) $'000 |
|
|
Continuing operations |
|||
|
Revenue |
56,070 |
47,441 |
|
|
Cost of Sales |
(17,598) |
(16,285) |
|
|
|
|
||
|
Gross profit |
38,472 |
31,156 |
|
|
|
|
||
|
Overheads |
|
|
|
|
Sales & marketing expenses |
(21,661) |
(16,719) |
|
|
Administrative expenses |
(5,582) |
(5,089) |
|
|
Research & development expenditure |
(553) |
(419) |
|
|
Total operating expenses |
(27,796) |
(22,227) |
|
|
|
|
||
|
Operating profit |
10,676 |
8,929 |
|
|
Analysed as |
|||
|
EBITDA |
13,313 |
11,002 |
|
|
Depreciation of property, plant and equipment |
(2,008) |
(1,544) |
|
|
Amortisation of intangible assets |
(629) |
(529) |
|
|
Operating profit |
10,676 |
8,929 |
|
|
Interest receivable & similar income |
117 |
412 |
|
|
Interest payable & similar charges |
(755) |
(687) |
|
|
|
|
||
|
Profit before taxation |
10,038 |
8,654 |
|
|
|
|
||
|
Profit before amortisation of intangible assets |
10,667 |
9,183 |
|
|
Taxation |
3 |
(3,294) |
(2,733) |
|
Profit for the year |
4 |
6,744 |
5,921 |
|
Earnings per Ordinary Share |
|||
|
Basic earnings per Ordinary Share |
2 |
30.53c |
26.81c |
|
Diluted earnings per Ordinary Share |
2 |
29.59c |
26.29c |
|
Non GAAP measure |
|||
|
Adjusted earnings per Ordinary Share |
|||
|
Basic earnings per Ordinary Share |
2 |
33.38c |
29.21c |
Consolidated Statement of Recognised Income and Expense
|
Year to 31 March 2008 (audited) $'000 |
Year to 31 March 2007 (audited) $'000 |
|
|
Profit for the financial year |
6,744 |
5,921 |
|
Currency exchange adjustment |
(368) |
635 |
|
Deferred tax on share options |
5 |
44 |
|
Total recognised income for the year |
6,381 |
6,600 |
Consolidated Balance Sheet
at 31 March 2008
|
At 31 March |
At 31 March |
|
|
2008 (audited) $'000 |
2007 (audited) $'000 |
|
|
Assets |
|
|
|
Non-current assets |
||
|
Intangible assets |
31,496 |
30,795 |
|
Property, plant and equipment |
8,942 |
6,268 |
|
Other receivables and prepayments |
62 |
69 |
|
Deferred tax asset |
1,577 |
2,387 |
|
42,077 |
39,519 |
|
|
Current assets |
|
|
|
Inventory |
7,518 |
7,394 |
|
Trade and other receivables |
12,768 |
9,952 |
|
Cash and cash equivalents |
6,356 |
5,946 |
|
26,642 |
23,292 |
|
|
Liabilities |
|
|
|
Current liabilities |
||
|
Borrowings |
(104) |
(1,604) |
|
Trade and other payables |
(7,465) |
(6,262) |
|
Current tax liability |
(681) |
(186) |
|
(8,250) |
(8,052) |
|
|
Net current assets |
18,392 |
15,240 |
|
Non-current liabilities |
|
|
|
Borrowings |
(4,960) |
(7,964) |
|
Other non-current liabilities |
(1,962) |
(1,108) |
|
Deferred tax liability |
(2,072) |
(1,355) |
|
(8,994) |
(10,427) |
|
|
|
|
|
|
Net assets |
51,475 |
44,332 |
|
|
|
|
|
Shareholders' equity |
|
|
|
Called up share capital |
1,611 |
1,611 |
|
Share premium account |
13,120 |
13,120 |
|
Treasury shares |
(1,201) |
(1,201) |
|
Currency translation reserve |
70 |
438 |
|
Retained earnings |
36,393 |
28,882 |
|
Reserve arising on consolidation |
1,482 |
1,482 |
|
|
|
|
|
Total equity |
51,475 |
44,332 |
Cashflow Statement
for the year ended 31 March 2008
|
Year |
Year |
|
|
to 31 March |
to 31 March |
|
|
2008 (audited) $'000 |
2007 (audited) $'000 |
|
|
|
|
|
|
Cash flows from operating activities |
12,223 |
8,384 |
|
Tax paid |
(1,257) |
(420) |
|
Interest paid |
(751) |
(515) |
|
Interest received |
117 |
480 |
|
Net cash from operating activities |
10,332 |
7,929 |
|
Cash flows from investing activities |
|
|
|
Acquisition of subsidiary, net of cash acquired |
- |
(30,408) |
|
Purchase of property, plant and equipment |
(3,356) |
(1,603) |
|
Expenditure on intangible fixed assets |
(1,326) |
(862) |
|
Net cash used in investing activities |
(4,682) |
(32,873) |
|
Cash flows from financing activities |
|
|
|
Sale of treasury shares |
- |
23 |
|
Receipt of new bank loan |
- |
13,188 |
|
Repayment of principal under finance leases |
(213) |
(60) |
|
Repayment of loan principal |
(4,508) |
(3,964) |
|
Net cash (used in)/generated by financing activities |
(4,721) |
9,187 |
|
|
||
|
Effects of exchange rate changes |
(519) |
529 |
|
Net increase/(decrease) in cash and cash equivalents in the year |
410 |
(15,228) |
|
Cash and cash equivalents at the beginning of the year |
5,946 |
21,174 |
|
Cash and cash equivalents at the end of the year |
6,356 |
5,946 |
Reconciliation of profit before tax to cash generated from operations
|
Profit before taxation |
10,038 |
8,654 |
|
Depreciation of property, plant and equipment |
2,008 |
1,544 |
|
Amortisation of intangible assets |
629 |
529 |
|
Loss on disposal of property, plant and equipment |
66 |
14 |
|
Share option compensation charge |
762 |
419 |
|
Net finance expense |
638 |
275 |
|
Operating cash flow before changes in working capital and provisions |
14,141 |
11,435 |
|
(Increase) in receivables |
(2,809) |
(712) |
|
(Increase) in inventory |
(124) |
(1,173) |
|
Increase/(decrease) in payables |
1,015 |
(1,166) |
|
Cash flows from operating activities |
12,223 |
8,384 |
Notes to the Financial Statements
for the year ended 31 March 2008
1. Basis of preparation
The financial information contained in this statement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The information has been extracted from financial statements approved by the Directors on 16 June 2008 which have received an unqualified auditors' report from PricewaterhouseCoopers LLP, Chartered Accountants and Registered Auditors of Abacus House, Castle Park, Cambridge CB3 0AN. The financial statements will be delivered to the Registrar of Companies after the Annual General Meeting. The 2007 financial statements were given an unqualified opinion by the Company's auditors.
The consolidated financial information of the Group has been prepared in accordance with International Financial Reporting Standards ("IFRS") as endorsed by the European Union, International Financial Reporting Interpretation Committee ("IFRIC") interpretations and those parts of the Companies Act 1985 applicable to companies reporting under IFRS.
The consolidated financial information has been prepared on a historical cost basis except for certain items that have been measured at fair value.
2. Basic and Diluted Profit per Ordinary Share
|
Year |
Year |
|
|
to 31 March |
to 31 March |
|
|
2008 (audited) $'000 |
2007 (audited) $'000 |
|
|
Profit on ordinary activities after taxation |
6,744 |
5,921 |
|
Basic weighted average number of ordinary shares in issue |
22,088,673 |
22,083,054 |
|
Diluted weighted average number of ordinary shares in issue |
22,788,644 |
22,525,556 |
|
Earnings per ordinary share |
||
|
Basic earnings per Ordinary Share |
30.53c |
26.81c |
|
Diluted earnings per Ordinary Share |
29.59c |
26.29c |
|
Adjusted earning per ordinary share |
||
|
Basic earnings per Ordinary Share |
33.38c |
29.21c |
Adjusted earnings per share are calculated by dividing the adjusted profit after tax of $7,373,000 obtained by adding back the amortisation of intangible assets charge of $629,000 to the profit after tax for the year of $6,744,000 by the weighted average number of shares in issue during the year.
3. Taxation
|
Year |
Year |
|
|
to 31 March |
to 31 March |
|
|
2008 (audited) $'000 |
2007 (audited) $'000 |
|
|
United Kingdom taxation at 30% |
1,497 |
763 |
|
Foreign taxation (US-Europe) charge |
1,797 _____ |
1,970 _____ |
|
3,294 |
2,733 |
4. Consolidated Statement of Changes in Shareholders' Equity at 31 March 2008
|
Share capital |
Share premium account |
Treasury shares |
Currency translation reserve |
|
|
(audited) |
(audited) |
(audited) |
(audited) |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
Balance at 1 April 2006 |
1,611 |
13,120 |
(1,224) |
(197) |
|
|
|
|
|
|
|
Movement in own shares |
- |
- |
23 |
- |
|
Currency translation differences group |
- |
- |
- |
635 |
|
Share option compensation charge |
- |
- |
- |
- |
|
Excess deferred tax on share options recognized direct in equity |
- |
- |
- |
- |
|
Net income/(expenses) recognised directly in equity |
1,611 |
13,120 |
(1,201) |
438 |
|
Profit for the year |
- |
- |
- |
- |
|
Balance at 1 April 2007 |
1,611 |
13,120 |
(1,201) |
438 |
|
|
|
|
|
|
|
Currency translation differences group |
- |
- |
- |
(368) |
|
Share option compensation charge |
- |
- |
- |
- |
|
Excess deferred tax on share options recognized direct in equity |
- |
- |
- |
- |
|
Net income/(expenses) recognised directly in equity |
1,611 |
13,120 |
(1,201) |
70 |
|
Profit for the year |
- |
- |
- |
- |
|
|
|
|
|
|
|
Balance at 31 March 2008 |
1,611 |
13,120 |
(1,201) |
70 |
(continued from table above)
|
Retained earnings |
Reserve arising on consolidation |
Total |
|
|
(audited) |
(audited) |
(audited) |
|
|
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
Balance at 1 April 2006 |
22,498 |
1,482 |
37,290 |
|
|
|
|
|
|
Movement in own shares |
- |
- |
23 |
|
Currency translation differences group |
- |
- |
635 |
|
Share option compensation charge |
419 |
- |
419 |
|
Excess deferred tax on share options recognized direct in equity |
44 |
- |
44 |
|
Net income/(expenses) recognised directly in equity |
22,961 |
1,482 |
38,411 |
|
Profit for the year |
5,921 |
- |
5,921 |
|
Balance at 1 April 2007 |
28,882 |
1,482 |
44,332 |
|
|
|
|
|
|
Currency translation differences group |
- |
- |
(368) |
|
Share option compensation charge |
762 |
- |
762 |
|
Excess deferred tax on share options recognized direct in equity |
5 |
- |
5 |
|
Net income/(expenses) recognised directly in equity |
29,649 |
1,482 |
44,731 |
|
Profit for the year |
6,744 |
- |
6,744 |
|
|
|
|
|
|
Balance at 31 March 2008 |
36,393 |
1,482 |
51,475 |
Related Shares:
Celadon Pharmaceuticals