16th Jan 2007 07:00
Henderson Morley PLC16 January 2007 16 JANUARY 2007 HENDERSON MORLEY PLC (AIM:HML) INTERIM RESULTS FOR THE SIX MONTHS TO 31 OCTOBER 2006 The Board of Henderson Morley plc ("Henderson Morley" or "the Company"), the AIMlisted drug discovery company, announces its interim results for the six monthsto 31 October 2006. HIGHLIGHTS • Signed exclusive American, Mexican and Canadian wide licence to bring Ionic Contra Viral Therapy (ICVT) products to the market; • Granted ICVT licence in respect of ICVT with Amistad Pharma to bring products to market through a programme of pre-clinical and clinical development; • Successfully raised £1.65m via two placings for further commercialisation and development purposes; and • Commenced collaboration to start field trials of a vaccine against Koi Carp Herpes virus. Executive Chairman Andrew Knight said: "This has been a busy period for thecompany as we work towards the anticipated commercialisation of our patentportfolio and to develop ICVT. We will continue to seek new opportunities togrow revenues both in the near and long term by focusing on both human andanimal health." ---ENDS--- ENQUIRIES: HENDERSON MORLEY PLC 0121 442 4600Andrew Knight, Chairman BISHOPSGATE COMMUNICATIONS LTD 0207 562 3350Maxine BarnesNick Rome BREWIN DOLPHIN SECURITIES LTD 0113 241 2016Neil Baldwin 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 Platformand has been developed in-house and HML wholly owns the patent IPR. Further information on Henderson Morley plc can be accessed through theCompany's website at www.henderson-morley.com CHAIRMAN'S STATEMENT Financial Summary Turnover for the period under review was £838 (2005:£1,081) which after expensesand R&D costs showed a pre tax loss of £468,572 (2005:£382,976). Cash at Bank asat 31 October 2006 was £1,363,338. During the period the Company successfullyraised £1.65m via two placings. The total number of shares in issue is now461,928,632. Overview During the period the Company granted a licence in respect of ICVT to CutaneaLife Sciences Inc ("Cutanea"), a specialist US based dermatology drugdevelopment company. It also granted a licence in respect of ICVT to Amistad Pharma, a company whose focus is mainly on women's health care. The Cutanea Licence Agreement is for new applications of ICVT for the treatmentof dermatological conditions in humans, including but not limited to skin warts,verrucae and molluscum contagiosum. The Licence is an exclusive American,Mexican and Canadian wide licence to bring products to market through aprogramme of pre-clinical and clinical development of treatments either byCutanea or through a sub-licence. Under the terms of the Agreement, HendersonMorley will receive up to $6.675m in development and commercialisation milestonepayments up to the point at which the application receives regulatory approval,and will receive royalties on net sales thereafter. The Amistad License Agreement is for a new application of ICVT for the topicaltreatment of genital and labial herpes and certain other dysplasias. Thelicence will be an exclusive worldwide licence to bring the products to market through a programme of pre-clinical and clinical development of the treatmenteither by Amistad or through a sub-licence. The Company also announced collaboration with Hagerman Aquaculture ResearchInstitute to work on a vaccine against Koi Carp Herpes virus. The discovery oftreatments for animals has a far shorter lead time than treatments for humans, which brings the prospects of nearer term revenue. Issue of Equity During the period the Company successfully raised £1.65m via two placings. Thepurpose of this placing was to provide the Company with working capital tocontinue with its investment and the anticipated commercialisation of its patentportfolio and the ongoing development of ICVT. Outlook This has been an exciting period in the development of Henderson Morley as wework towards the anticipated commercialisation of our patent portfolio and todevelop ICVT. We will continue to seek new opportunities to grow revenues bothin the near and long term by focusing on both human and animal health. I lookforward to reporting to shareholders as we make further progress. ANDREW KNIGHTExecutive Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT 6 months to 6 months to Year Ended 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £ TURNOVER 838 1,081 2,991 Cost of sales (568) (763) (2,059) --------- --------- --------GROSS PROFIT 270 318 932 Administrative expenses (253,692) (200,903) (513,655)Research and development (214,749) (186,375) (269,301)Amortisation of goodwill (7,370) (7,370) (14,740) --------- --------- --------OPERATING LOSS (475,541) (394,330) (796,764) Net Interest received/(paid) 6,969 11,354 20,753 --------- --------- --------LOSS ON ORDINARY ACTIVITIES BEFORETAXATION (468,572) (382,976) (776,011) Tax on loss on ordinary activities 34,334 30,772 64,632 --------- --------- --------RETAINED LOSS FOR THE PERIOD (434,238) (352,204) (711,379) ========= ========= ======== Loss per Ordinary ShareBasic and Diluted (0.11)p (0.11)p (0.20)p HENDERSON MORLEY PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2006 CONSOLIDATED BALANCE SHEET As at As at As At 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £ FIXED ASSETSIntangible assets 91,434 111,486 101,460Tangible assets 52,393 45,381 38,645 143,827 156,864 140,105 CURRENT ASSETSStocks 1,228 2,532 1,708Debtors 130,573 88,459 118,059Called up Share Capital not paid - 242,500 -Cash at bank 1,363,338 355,271 261,256 1,495,139 688,762 381,023 CREDITORS:Amounts falling due withinone year (76,378) (75,629) (110,303) --------- ---------- ---------TOTAL ASSETS LESS CURRENTLIABILITIES 1,562,588 770,000 410,825 ========= ========== ========= CAPITAL AND RESERVESCalled up Share Capital 577,411 479,911 479,911Share Premium Account 5,402,142 3,913,641 3,913,641Profit and Loss Account (4,416,965) (3,623,552) (3,982,727) --------- ---------- ---------EQUITY SHAREHOLDERS' FUNDS 1,562,588 770,000 410,825 ========= ========== ========= HENDERSON MORLEY PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2006 SUMMARISED CONSOLIDATED CASH FLOWSTATEMENT 6 months 6 months Year to to Ended 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £ Net cash outflow from operatingactivities (456,128) (400,001) (753,358)(Note 1) Returns on investments and servicingof finance 6,696 11,354 20,753 Taxation - 67,487 67,487 Capital expenditure (21,128) (8,784) (11,775) FinancingIssue of ordinary share capital 1,586,000 - 242,500Loans and Hire Purchase 710 - (7,417) --------- --------- --------Increase/(Decrease) in cash 1,116,423 (329,944) (441,810) ========= ========= ======== Reconciliation of net cash flow tomovement in net debt Increase/(Decrease) in cash 1,116,423 (329,944) (441,810)Cash outflow from finance leases - - 3,510 -------- ------- -------Movement in net debt in the period 1,116,423 (329,944) (438,300)Net funds at beginning of period 246,915 685,215 685,215 --------- --------- --------Net funds at end of period 1,363,338 355,271 246,915 ========= ========= ======== Note1 Reconciliation of operatingloss to cash outflow from operatingactivities.Operating Loss (475,541) (394,330) (796,764)Depreciation and amortisation charges 17,406 15,939 31,590Loss on sale of fixed assets - - 4,102Decrease in stocks 480 299 1,123(Increase)/decrease in debtors 21,820 2,999 7,259Increase/(decrease) in creditors (20,293) (24,908) (668) --------- --------- --------Net cash outflow from operatingactivities (456,128) (400,001) (753,358) ========= ========= ======== NOTES TO THE INTERIM RESULTS 1. The interim financial statements have been prepared on the basis of the accounting policies set out in the audited statutory accounts for the year ended 30 April 2006 2. The calculation of loss per share is based on the loss after tax for the period and on 411,515,588 (30 April 2006- 359,281,098 and 31 October 2005- 335,025,589) ordinary shares, being the weighted average number of shares in issue during the period. 3. On 3 May 2006 the company issued 18,000,000 ordinary shares of 0.125p at 2.5p per share for cash. On 2 October 2006 the company issued 60,000,000 ordinary shares of 0.125p at 2p per share for cash. 4. This statement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The statutory accounts for the period to 30 April 2006, upon which the auditors issued an unqualified report, have been filed with the Registrar of Companies. 5. This interim report is being sent to all shareholders and is available to the public from the company's registered office at Metropolitan House, 2 Salisbury Road, Moseley, Birmingham B13 8JS. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HML.L