28th Sep 2006 11:30
Deltex Medical Group PLC28 September 2006 Deltex Medical Group plc Interim results for the six months ended 30 June 2006 28 September 2006 - Deltex Medical Group plc ("Deltex Medical" or "Company"),the AIM listed haemodynamic monitoring company, today announces its results forthe six-month period ended 30 June 2006. Financial Highlights • Turnover increased by over 20% in direct markets • 25% increase in gross profit • £1,241,000 in new equity raised after expenses (including £585,000 announced in this results statement) Operating Highlights • Growth in sales of disposable probe continues to drive increases in revenue • Faster growth seen in high volume operating theatre market • Strongly positive, surgeon-led trial in colorectal surgery published in the British Journal of Surgery • Meta-analysis of clinical trial data reports three day reduction in length of stay • Acquisition of TECO oesophageal Doppler business • European distribution restructured preparing the Company for the next stage of development in these markets For further information, please contact:- Deltex Medical Group plc 01243 774 837Nigel Keen, ChairmanAndy Hill, Chief ExecutiveEwan Phillips, Finance Director [email protected] Gavin Anderson & Company 0207 554 1400Deborah WalterMarie CairneyJodie Reilly Charles Stanley Securities 0207 149 6457Philip Davies Notes for Editors Deltex Medical manufactures and markets the CardioQ monitor, which usesdisposable ultrasound probes inserted into the oesophagus to determine theamount of blood being pumped around the body - 'circulating blood volume'.Reduced circulating blood volume is known as hypovolaemia, which leads toinsufficient oxygen being delivered to the organs. This causes medicalcomplications including peripheral and major organ failure which can lead todeath. Hypovolaemia, which is akin to severe dehydration, affects virtuallyevery patient having surgery because of the combined effects of pre-operativestarvation, the impact of the anaesthetic agents and trauma from the surgeryitself. Using fluids and drugs, guided by the CardioQ, to optimise the amount ofcirculating blood significantly reduces post-operative complications allowingpatients to make a faster, more complete recovery and return home earlier. The CardioQ incorporates the Company's proprietary software and a smalldiameter, easy-to-use, minimally invasive, disposable oesophageal probe that isused for transmitting and receiving an ultra-sound signal. By using thistechnology, the CardioQ provides clinicians with the ability to haemodynamicallyoptimise critically ill patients and those undergoing routine moderate to majorsurgery through the controlled administration of fluid and drugs. Haemodynamicoptimisation has been scientifically proven to improve the speed and quality ofpatient recovery and reduce hospital stay. There are already over 1,250 CardioQs currently in use in hospitals worldwideand distribution arrangements are in place in over 30 countries. In addition,there are currently more than 90 clinical publications on the use of the CardioQ which have repeatedly:- • validated the results of the Monitor against known standards for measuring cardiac output, demonstrating that the technology works • proved that the CardioQ works in a wide range of surgical procedures • demonstrated that the Company's technology provides significant health and economic benefits by helping to reduce post-operative complications and length of hospital stays by an average of 30 to 40 per cent for a wide range of patients. Chairman's Statement Group Overview All patients undergoing surgery are at risk from serious and potentiallylife-threatening complications caused by a reduction in circulating bloodvolume. This condition, known as hypovolaemia, results from the combined impactof pre-operative fasting, the effects of the anaesthetic and the blood lostduring the surgical procedure. In many respects hypovolaemia is similar tosevere dehydration. The complications this condition causes arise because thereduced circulating blood volume is unable to carry sufficient oxygen to themajor organs and tissues. All of these are at risk from failure as a consequenceof the resultant oxygen deprivation. The CardioQ monitors the flow of blood leaving the heart with every beat as ithappens and consequently can detect any reduction in circulating blood volumeearly and in real-time. This allows the doctor to intervene quickly and safelyto correct the situation, using a combination of specialised fluids and drugs,before the hypovolaemia becomes serious and potentially life threatening. Thetechnique of optimising a patient's haemodynamic status in this way, by givingthe right amount of the right fluid at the right time, is known as haemodynamicoptimisation or Targeted Volume Management (TVM). The CardioQ plays an important part in improving the efficiency and productivityof the healthcare system. Using the CardioQ to monitor and manage the patients'circulating blood volume during surgery helps them to recover more fully andmore quickly. Using the CardioQ means that fewer patients need to go tointensive care and those that do stay there for shorter periods. Patientjourneys through the hospital become more predictable because fewer patientsunexpectedly need intensive care support. Clinical evidence of the highest quality supports our assertion that TVM shouldbe a prerequisite for all patients having major surgery as well as part ofroutine care for post-operative or critically ill patients in critical careunits. Trading Update Sales 2006 2006 2006 2006 2006 2006 2005 2005 2005 2005 2005 2005 Probes Monitors Probes Monitors Other Total Probes Monitors Probes Monitors Other Total units units £'000 £'000 £'000 £'000 units units £'000 £'000 £'000 £'000DirectmarketsUK 11,745 26 886 146 59 1,091 10,145 21 737 115 42 894USA 2,245 2 165 5 2 172 2,160 3 139 13 1 153DistributormarketsEurope 2,020 1 101 4 6 111 4,460 10 193 68 1 262Far East & 3,390 6 120 19 2 141 2,830 2 96 4 1 101LatinAmerica ------------------------------------------------------------------------------------------------------ 19,400 35 1,272 174 69 1,515 19,595 36 1,165 200 45 1,410 ------------------------------------------------------------------------------------------------------ Trading results in the first half of 2006 reflect the Group's continued progressoverall and in each of the UK, USA, Far East and Latin America together with therestructuring of our distribution arrangements in all our more significantEuropean markets. Based upon the growth in the use of the CardioQ we have seen since our change todirect sales in the UK, we undertook an audit of our European distributorbusiness. In certain markets where opportunities have arisen, we have put inplace direct sales support. Elsewhere, we have moved the majority of our keydistributors on to monthly probe orders. Not only has this given us far bettervisibility of the effectiveness of local marketing, it has also allowed us toimprove our production planning and manufacturing flows. The restructuring hasbeen successful in reducing substantially the levels of probe stocks held bydistributors. Going forward, it means that underlying increases in use of theCardioQ will be more quickly evident in the Company's sales. Turnover in the UK and USA, where we sell direct to the end-user, increased byover 20% in the period. Sales for the Group as a whole were ahead by £105,000(7%) compared to the first half in 2005, after the impact of restructuring ourcommercial relationships with our key distribution partners in Europe. Firsthalf sales to distributors in continental Europe were £151,000 lower than in2005 at £111,000. Group sales growth, excluding continental Europe, was 22%, thesame rate as achieved in our largest market, the UK. Operating losses of £1,397,000 were £119,000 higher than in the correspondingperiod in 2005, after a number of one-off items. The main one-off items relatedto the restructuring of our continental European business and costs incurredwith the purchase and integration of the TECO business which we acquired inJanuary of this year. We continue to keep a tight rein on our cost base whilemaking limited additional investments to pursue our core business developmentobjectives. We will continue to invest in new programmes based on their meritand the availability of the funds necessary to pursue them. We have adopted FRS 20: "Share-based payments" for the first time in theseinterim accounts, resulting in a charge in the period of £95,000. We haverestated the 2005 comparatives for the first half of 2005 to include anadditional charge of £164,000 and restated the full year 2005 comparatives toinclude a further charge of £97,000 resulting in a total charge for the year of£261,000. The cumulative effect on reserves is shown in "other reserves". TheBoard believes that share options are an important tool to incentivise andretain the quality of managers and staff necessary for the Company to succeed inits objective of making the CardioQ an international standard of care and ittherefore intends to continue to use them as an important part of itsremuneration strategy. Total net cash outflow from operating activities in the six months ended 30 June2006 was £867,000 and included the costs associated with the TECO acquisitionand its subsequent integration as well as the restructuring of our continentalEuropean distributor business. The underlying cash burn averaged £88,000 permonth, an improvement over the corresponding period last year. The underlyingmonthly cash burn was £25,000 higher than achieved in the second half of 2005due to reduced receipts from our continental European distributors as we wentthrough the restructuring process and to the limited expansion in our cost base.Now that our major distributors are placing regular monthly orders, the Group iswell positioned to continue the trend of reducing the underlying monthly cashburn towards the break-even point. Today we announce the placing of 2,988,750 new ordinary shares of 1p each at 20pper share to raise £585,000 with an institutional investor after expenses in newequity capital. Application will be made for the new shares to be traded on AIMand it is expected that dealings will commence on 4 October 2006. Following theissue of these new shares the Company has a total of 79,687,313 ordinary sharesin issue. This capital will be used to fund a UK and continental Europeancampaign to promote the results of the recently published Freeman hospitalrandomised controlled trial and the meta-analysis, we recently announced. The Company had cash available at 30 June 2006 of £522,000. Taking intoconsideration the cash available, the bank facility in place, the new equityfinance referred to above and on the basis of current cash utilisation andanticipated growth in sales, the Directors remain confident the Company hasadequate cash resources to see it through to profitability. Markets UK UK sales were £197,000 ahead of the corresponding period in 2005, an increase of22%. We recorded increased sales in each of our three revenue streams of probes,monitors and maintenance contracts. The largest contributor to growth continues to be sales of disposable probes,which increased by £149,000 (20%). On average we sold 1,958, probes per month inthe first half and were successful in maintaining a steady growth profile: Junewas the twentieth consecutive month and September will be the twenty-third whereUK probe sales were higher than in the corresponding month the year before.March was our best ever month and June the second best for UK probe sales. Probe growth has also continued in the intensive care environment where theCardioQ, based on a recent independent study, is the UK's most popularhaemodynamic monitor. We have been selling probes designed specifically for use in operating theatressince early 2003 and it is now clear that the growth rate is significantlygreater than that in intensive care. In the UK NHS there are about 750,000patients undergoing surgery where clinical evidence has already established thatTVM should be the new standard of care, although only a small proportion arebeing treated using these new approaches. USA Sales in the USA were £172,000 compared to £153,000 in the first half of 2005,an increase of 12%. Revenue from the sale of disposable probes accounted for£165,000 or 96% of the total first half sales in the USA. The growing interest in haemodyamic management in the USA is suggested by thefact that we have recently seen a step up in the number of quotations tocustomers for CardioQ. Quotation requests are now evenly split between theoperating theatre and intensive care environments, reflecting the increasinginterest in the concept of TVM among US anaesthetists in the operating theatre. Our strategy in the USA continues to be to work with a small number ofinfluential hospitals, allied to key healthcare providers, in order to tailorour sales message and value proposition to suit their specific needs. Theseproviders are either publicly funded through government programmes (such as themilitary and Veterans Administration) or privately through insurance (forexample, the Health Maintenance Organisations). In parallel to these sales activities, we have been engaged in discussion withthe US government agency responsible for assessing the need for and setting thelevel of medical technology reimbursement. Distributed Markets - Continental Europe, Far East and Latin America Continental Europe Our focus in Europe in the first half of 2006 has been to restructure ourapproach to our distributors in the key countries. The goals for this change aretwofold; firstly, to move the leading distributors on to monthly standing ordersto meet their on-going sales need and, secondly, to make it easier for us to seethe impact of local sales initiatives and training programmes. Taken together,this approach gives us much greater flexibility to tailor our distributionstrategy to better match opportunities as and when they arise and at lower cost.It also gives us better visibility of end-customer activity, allowing bettermanufacturing planning. The costs associated with this initiative are includedin the one-off items referred to earlier in this statement. We are currently seeing month-on-month increases in the overall level of probesbeing delivered against standing orders since the inception of this strategy. Far East and Latin America While distributor support in the Far East and Latin American countries continuesmostly to be provided on a remote, telephone support basis, increased sales intoPeru have warranted one field-based support visit by the international sales andclinical training team. Sales in Peru are now second only to those into Francein our distributed markets and our Peruvian distributor has been successful intranslating our core sales message and value proposition into valuable salestools in his territory. A number of territories are pursuing approvals for hospital reimbursement forthe probes and these initiatives represent a significant opportunity to increasesales of both probes and monitors in the Far East and Latin American countries. We will continue to manage these distributors using the 'remote support'strategy, making infrequent in-country support visits only where the chances ofan early return on the associated investment is assured. Research and Development The primary focus of our research and development activity remains those awakepatients who are either having surgery, usually under regional anaesthesiaadministered via the spine, or who are awake elsewhere in the hospital, at riskfrom hypovolaemia and currently unable easily to benefit from the use ofoesophageal Doppler monitoring. Whilst awake patients in the operating theatrerepresent only a relatively small part of our target market, these patientswould benefit from TVM. At present, our awake patient probe is only used in a small number of patientsundergoing surgery under spinal anaesthesia and our aim is to increase uptakethrough making small changes to the handling characteristics of the currentawake patient probe to make it easier to place. The SupraQTM suprasternal monitor is intended for use on those patients where awholly non-invasive Doppler ultrasound-based awake monitoring solution ispreferred; for example, on the hospital's general wards, in the outpatientdepartment or Accident and Emergency Departments or at the site of a roadtraffic accident. Early versions of the SupraQ have been used in a number of clinical trials overthe last four years with good results, as previously reported. The Medwayhospital is currently awaiting internal approval to begin formal research withthe SupraQ which is expected to begin in the coming months. The SupraQ relies upon 'seeing' the main artery leaving the heart (the aorta)through an anatomical 'window' at the base of the patient's throat - thesuprasternal notch. From this point there are no structures that might obstructthe ultrasound signal. The handheld transducer is orientated towards the aortaand the device is able to measure aortic blood flow and provide the sameclinical data as the CardioQ. In the first half of this year our engineers developed a new, prototypeultrasound platform for the SupraQ and this has shown promising results in early(non-clinical) testing. It is hoped that we will be able to use this newapproach to make the device easier to use in a routine clinical environment. Clinical Papers There has been a significant increase in the time devoted in major internationalclinical meetings to haemodynamic management and a corresponding increase in thenumber of clinical trials presented and published in the first half of the year. We announced on 31 August that The British Journal of Surgery had published thefirst surgeon-led, double-blinded, randomised controlled clinical trial incolorectal surgery from the Freeman hospital, Newcastle-Upon-Tyne. Doctors atthe hospital, under the leadership of Mr Alan Horgan, a consultant colorectalsurgeon, demonstrated that use of the CardioQ meant that patients were fit fordischarge earlier, suffered significantly fewer complications, did not requireunplanned intensive care support and were able to tolerate food significantlyearlier than patients treated traditionally. Following publication of this trial, Mr Horgan and Dr Sophie Noblett, the leadauthor of the trial paper, were invited to present their results to an audienceof over 600 international colorectal surgeons at the first European Society ofColoproctology (ESCP) conference in Lisbon. Response to the presentation and asubsequent symposium on fast track surgery that included a talks on the impactof the adoption of CardioQ as a standard of care in colorectal surgery at theFreeman hospital and at Worthing hospital was well received and generated agreat deal of interest on the Deltex Medical exhibition stand. On September 18 we reported on a trial being undertaken at a major children'shospital. This trial will include 200 patients and look at the efficacy of theCardioQ as a cardiac output monitor in babies and small children in thepaediatric intensive care unit. On 26 September we reported on the presentation by Dr Mark Hamilton of anindependently conducted, systematic review (a so-called 'meta-analysis'), of theavailable clinical data on oesophageal Doppler monitoring (this review excludedthe Freeman data above as it was submitted before the results were made public).This analysis concluded that use of the CardioQ significantly reduces length ofstay following major surgery. This reduction is a direct consequence of patientssuffering fewer post-operative complications. A meta-analysis tests the weightof the body of evidence surrounding the use of a technology or technique and, ifits conclusions are positive, it is generally accepted that the technology ortechnique should be adopted for routine use. On 26 September we announced the presentation of a trial conducted in Grenoble,France that demonstrated the utility of the CardioQ in patients undergoing majorspinal surgery. These new publications contribute to the unique and already overwhelming body ofevidence and clearly demonstrate that patients undergoing moderate and majorsurgery are at risk if they are denied TVM using the CardioQ. Prospects We believe that the overwhelming body of clinical evidence and the opportunityfor improved efficiency and cost-effectiveness of care delivery that use of theCardioQ affords means that Deltex Medical is set to provide better care forpatients and continued, sustainable growth and greater value for ourshareholders. Nigel KeenChairman 28 September 2006 Consolidated Profit and Loss Accountfor the six month period ended 30 June 2006 Unaudited Unaudited Unaudited Half year to Half year to Full year to 30 June 30 June 31 December 2006 2005 2005 As restated As restated £'000 £'000 £'000 Turnover 1,515 1,410 3,042Cost of sales (503) (603) (1,076) ---- ---- ----Gross profit 1,012 807 1,966 ---- ---- ----Net operating expenses (2,409) (2,085) (3,740) ---- ---- ----Operating loss (1,397) (1,278) (1,774)Net interest - 6 3 ---- ---- ----Loss on ordinary activities before taxation (1,397) (1,272) (1,771)Tax on loss on ordinary activities 11 13 22 ---- ---- ----Loss for the financial period (1,386) (1,259) (1,749) ========= ========= =========Loss per share - basic and diluted (1.9p) (1.8p) (2.5p) ========= ========= ========= The above results all relate to continuing operations. The loss on ordinaryactivities before taxation and the loss for the period has been computed on thehistorical cost basis. Statement of Group Total Recognised Gains and Lossesfor the six month period ended 30 June 2006 Unaudited Unaudited Unaudited Half year to Half year to Full year to 30 June 30 June 31 December 2006 2005 2005 As restated As restated £'000 £'000 £'000 ---- ---- ----Loss for the financial period (1,386) (1,259) (1,749)Currency translation differences in foreigncurrency net investment (3) 6 9 ---- ---- ---- (1,389) (1,253) (1,740) ========= ========= ========= Consolidated Balance Sheetat 30 June 2006 Unaudited Unaudited Unaudited 30 June 30 June 31 December 2006 2005 2005 As restated A s restated £'000 £'000 £'000Fixed assetsTangible assets 64 103 85 ---- ---- ----Current assetsStocks 427 559 443DebtorsAmounts falling due within one year 937 755 967Amounts falling due after more than one year 73 116 99Cash at bank and in hand 522 468 606 ---- ---- ---- 1,959 1,898 2,115Creditors:Amounts falling due within one year (1,396) (1,032) (1,089) ---- ---- ----Net current assets 563 866 1,026 ---- ---- ----Total assets less current liabilities 627 969 1,111 Creditors: amounts falling due after more thanone year - (5) (1)Provision for liabilities and charges (50) (38) (34) ---- ---- ---- 577 926 1,076 ========= ========= =========Capital and reservesCalled up share capital 767 697 726Share premium account 13,466 12,201 12,712Capital redemption reserve 17,476 17,476 17,476Other reserves 863 671 768Profit and loss account (31,995) (30,119) (30,606) ---- ---- ----Equity shareholders' funds 577 926 1,076 ========= ========= ========= Consolidated Cash Flow Statementfor the six month period ended 30 June 2006 Unaudited Unaudited Unaudited Half year to Half year to Full year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 ---- ---- ----Net cash outflow from operating activities (867) (821) (1,263) ---- ---- ----Returns on investments and servicing of financeInterest received 4 7 9Finance lease interest (1) (1) (3)Finance interest (3) - (3) ---- ---- ----Net cash inflow from returns on investments andservicing of finance - 6 3 ---- ---- ----Taxation - - - ---- ---- ----Capital expenditurePurchase of tangible fixed assets (5) (3) (17) ---- ---- ----Net cash outflow for capital expenditure (5) (3) (17) ---- ---- ----Net cash outflow before financing (872) (818) (1,277) ---- ---- ----FinancingOther borrowings 12 78 114Capital element of finance lease rentals (3) (3) (7)Issue of ordinary share capital 825 1 571Expenses in connection with share issue (30) - (10) ---- ---- ----Net cash inflow from financing 804 76 668 ---- ---- ---- Decrease in net cash during the period (68) (742) (609) ========= ========= ========= Notes to the Interim Statementfor the six month period ended 30 June 2006 1. Basis of preparation The financial information for the six months ended 30 June 2006 is not audited but has been prepared in accordance with generally accepted accounting principles in the UK. The accounting policies adopted are those which will be applied in the financial statements for the year ended 31 December 2006. These are consistent with those set out in the audited financial statements for the year ended 31 December 2005, with the exception of the treatment of share option costs where FRS 20 has now been adopted. The financial information does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The Group awards directors, employees and certain of the Company's distributors equity-settled share-based payments, from time to time, on a discretionary basis. In accordance with FRS 20 "Share-based payments", equity settled share-based payments are measured at fair value at the time of grant. Fair value is measured by use of Black Scholes based model. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of the number of shares that will eventually vest. The options are subject to vesting conditions of up to six years, and their fair value is recognised as an expense with a corresponding increase in "other reserves" equity over the vesting period. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. Further information regard the adoption of FRS 20 is given in note 8 to the interim financial information. 2. Turnover The Group's activities consist solely of the manufacture and marketing of medical devices. By origin, all sales are United Kingdom sales. Unaudited Unaudited Audited Half year to 30 June 2006 Half year to 30 June 2005 Full year to 31 December 2005 Probes Monitors Other Total Probes Monitors Other Total Probes Monitors Other Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Analysis ofturnover bydestinationDirect MarketsUnited Kingdom 886 146 59 1,091 737 115 42 894 1,559 251 88 1,898United Statesof America 165 5 2 172 139 13 1 153 303 50 5 358 DistributorMarketsRest of Europe 101 4 6 111 193 68 1 262 289 328 6 623Far East & 120 19 2 141 96 4 1 101 128 34 1 163Latin America ---- ----- ---- ---- ---- ----- ---- ---- ---- ----- ---- ---- 1,272 174 69 1,515 1,165 200 45 1,410 2,279 663 100 3,042 ====== ======== ====== ====== ======= ======== ======= ======= ======= ======== ======= ======= 3. Loss per share The loss per share calculation for the six months to 30 June 2006 is based on the loss for the period of £1,386,000 and weighted number of shares in issue of 74.2 million. The loss per share calculation for the year to 31 December 2005 is based on the loss for the financial year of £1,749,000 and weighted average number of shares in issue of 70.4 million. The loss per share calculation for the six month period ended 30 June 2005 was based upon the loss for the period of £1,259,000 and weighted average number of shares in issue of 69.5 million. The Group had no dilutive potential ordinary shares in either period, which would serve to increase the loss per ordinary share. Therefore there is no difference between the loss per ordinary share and the diluted loss per ordinary share. 4. Reconciliation of movements in shareholders' funds Unaudited Unaudited Unaudited Half year to Half year to Full year to 30 June 30 June 31 December 2006 2005 2006 As restated As restated As restated £'000 £'000 £'000 Opening shareholders' funds 1,076 1,994 1,994Increase in share capital during the period 41 2 31Premium on shares issued, net of costs 754 19 530Loss for the financial period (1,386) (1,259) (1,749)Credit in respect of service costssettled by award of share options 95 164 261Exchange difference taken to reserves (3) 6 9 --- --- ---Closing shareholders' funds 577 926 1,076 ======== ======== ======== 5. Called-up share capital 1 pence ordinary shares £'000 76,698,563 1p ordinary shares 767 ======= During the period the Company placed 3,505,263 1p ordinary shares with institutional and other investors and a further 232,746 1p ordinary shares to non-executive directors in respect of fees due to them. In addition a total of 362,696 1p ordinary shares were issued to certain of the Company's advisors who elected to take shares in lieu of cash payment for their services to the Company. On 28 September 2006, the Company placed with an institutional investor 2,988,750 1p ordinary shares. 6. Reconciliation of operating loss to net cash outflow from operating activities Unaudited Unaudited Unaudited Half year to Half year to Full year to 30 June 30 June 31 December 2006 2005 2005 £'000 £'000 £'000 Operating loss (1,397) (1,278) (1,774)Depreciation on tangible fixed assets 26 36 66Decrease in stocks 21 199 178Decrease/(increase) in debtors 89 32 (189)Increase in creditors 281 27 193Costs associated with share option scheme 95 164 261Foreign exchange differences 2 (4) (2)Increase in provisions 16 3 4 --- --- ---Net cash outflow from operating activities (867) (821) (1,263) ======= ======= ======= 7. Reconciliation of movement in net cash 1 January Cash flow Exchange 30 June 2006 movement 2006 £'000 £'000 £'000 £'000 Net cashCash at bank and in hand 606 (68) (16) 522Other borrowings (219) (12) - (231)Finance leases (7) 3 - (4) --- --- --- --- 380 (77) (16) (287) ======= ======= ======= ======= 8. Prior year adjustment Following the adoption of FRS 20, "Share-based payments" the Group's reserves have been restated. The fair value of the share-based payments debited to the profit and loss reserve and credited to "other reserves" were £507,000 in respect of periods ending on or before 31 December 2004. The profit and loss account for the year ended 31 December 2005 was debited with a charge of £164,000 in the six months to 30 June 2005 and a further £97,000 for the full year to 31 December 2005 resulting in the total charge for the year of £261,000. The profit and loss account for the six months to 30 June 2006 includes a charge of £95,000 in respect of share based payments. 9. Distribution of announcement Copies of this announcement are being sent to all shareholders and will be available for collection free of charge from the Company's registered office at Terminus Road, Chichester, West Sussex, PO19 8TX. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Deltex Medical