13th Mar 2006 07:03
Sinclair Pharma PLC13 March 2006 Consolidated Income StatementFor the six months to 31 December 2005 (Unaudited) Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 Notes £000 £000 £000 Revenue 2 3,711 796 6,971 Cost of sales (1,588) (408) (2,616) _____ _____ _____Gross Profit 2,123 388 4,355 Administrative expenses Selling, marketing and distribution (1,493) (576) (2,489) Other administrative expenses (2,647) (1,992) (4,552) _____ _____ _____Total administrative expenses (4,140) (2,568) (7,041) Operating loss (2,017) (2,180) (2,686) Interest receivable 113 149 248Interest payable and similar charges (25) (1) (18) _____ _____ _____Loss before taxation (1,929) (2,032) (2,456) Taxation - (10) (45) _____ _____ _____ Loss for the period attributable to equity shareholders (1,929) (2,042) (2,501) _____ _____ _____ Basic and diluted loss per share 3 (3.58)p (4.29)p (5.09)p Consolidated Balance SheetAt 31 December 2005 (Unaudited) 31 December 31 December 2004 30 June 2005 2005 Notes £000 £000 £000Non-current assetsGoodwill 18,105 14,830 18,105Other intangible assets 1,141 1,224 1,183Property, plant and equipment 361 169 393 _____ _____ _____ 19,607 16,223 19,681 _____ _____ _____Current assetsInventories 722 82 601Trade and other receivables 4 3,472 1,607 4,901Current tax receivables 57 38 -Cash and cash equivalents 10,671 6,680 4,908 _____ _____ _____ 14,922 8,407 10,410 _____ _____ _____ Total Assets 34,529 24,630 30,091 Current liabilitiesTrade and other payables 5 (3,022) (2,031) (4,343)Current tax liabilities - - (17)Financial liabilities - borrowings (727) - (480) _____ _____ _____ (3,749) (2,031) (4,840) _____ _____ _____Non-current liabilitiesFinancial liabilities - borrowings (168) - (175) _____ _____ _____ Total liabilities (3,917) (2,031) (5,015) _____ _____ _____ Net Assets 30,612 22,599 25,076 _____ _____ _____ EquityShare capital 652 552 592Share premium account 23,248 17,303 16,171Shares to be issued - 2,251 -Other reserves 16,361 10,707 16,418Profit & loss account (9,645) (8,210) (8,101) _____ _____ _____ 30,616 22,603 25,080Minority equity interests (4) (4) (4) _____ _____ _____Total equity 30,612 22,599 25,076 _____ _____ _____ Consolidated Statement of changes in shareholders'equity (unaudited) Share Share Shares Merger Cumulative capital premium to be reserve Translation issued reserve £000 £000 £000 £000 £000 Balance at 1 July 2004 539 16,030 4,367 10,062 - Loss for the period - - - - -Exchange differences arising on translation of - - - - (50)foreign operations _____ _____ _____ _____ _____Net (expense) recognised directly in equity - - - - (50) _____ _____ _____ _____ _____Total recognised (expense)/ income for the - - - - (50)periodWarrants and options exercised - 3 - - -Share based payments - value of employee - - - - -servicesBiosurface acquisition 13 1,270 (2,116) - - _____ _____ _____ _____ _____Balance at 1 January 2005 552 17,303 2,251 10,062 (50) _____ _____ _____ _____ _____ Loss for the period - - - - -Exchange differences arising on translation of - - - - 98foreign operations _____ _____ _____ _____ _____Net (expense) recognised directly in equity - - - - 98 _____ _____ _____ _____ _____Total recognised (expense)/ income for the - - - - 98periodWarrants and options exercised 4 138 - - -Share based payments - value of employee - - - - -servicesBiosurface acquisition 13 (1,270) (2,251) 2,824 -Euroderm acquisition 23 - - 2,798 - _____ _____ _____ _____ _____Balance at 1 July 2005 592 16,171 - 15,684 48 _____ _____ _____ _____ _____ Loss for the period - - - - -Exchange differences arising on translation of - - - - (57)foreign operations _____ _____ _____ _____ _____Net (expense) recognised directly in equity - - - - (57) _____ _____ _____ _____ _____Total recognised (expense)/ income for the - - - - (57)periodWarrants and options exercised 1 16 - - -New issue of ordinary share capital 59 7,344 - - -New share issue costs - (283) - - -Share based payments - value of employee - - - - -services _____ _____ _____ _____ _____Balance at 31 December 2005 652 23,248 - 15,684 (9) _____ _____ _____ _____ _____ Other Retained Attributable to MI TOTAL reserves earnings equity holders of the parent £000 £000 £'000 £'000 £000 Balance at 1 July 2004 698 (6,577) 25,119 (4) 25,115 Loss for the period - (2,042) (2,042) - (2,042)Exchange differences arising on translation of - - (50) - (50)foreign operations _____ _____ _____ _____ _____Net (expense) recognised directly in equity - (2,042) (2,092) - (2,092) _____ _____ _____ _____ _____Total recognised (expense)/ income for the - (2,042) (2,092) - (2,092)periodWarrants and options exercised (3) 37 37 - 37Share based payments - value of employee - 372 372 - 372servicesBiosurface acquisition - - (833) (833) _____ _____ _____ _____ _____Balance at 1 January 2005 695 (8,210) 22,603 (4) 22,599 _____ _____ _____ _____ _____ Loss for the period - (459) (459) - (459)Exchange differences arising on translation of - - 98 - 98foreign operations _____ _____ _____ _____ _____Net (expense) recognised directly in equity - (459) (361) - (361) _____ _____ _____ _____ _____Total recognised (expense)/ income for the - (459) (361) - (361)periodWarrants and options exercised (9) 161 294 - 294Share based payments - value of employee - 407 407 - 407servicesBiosurface acquisition - - (684) - (684)Euroderm acquisition - - 2,821 - 2,821 _____ _____ _____ _____ _____Balance at 1 July 2005 686 (8,101) 25,080 (4) 25,076 _____ _____ _____ _____ _____ Loss for the period - (1,929) (1,929) - (1,929)Exchange differences arising on translation of - - (57) - (57)foreign operations _____ _____ _____ _____ _____Net (expense) recognised directly in equity - (1,929) (1,986) - (1,986) _____ _____ _____ _____ _____Total recognised (expense)/ income for the - (1,929) (1,986) - (1,986)periodWarrants and options exercised - - 17 - 17New issue of ordinary share capital - - 7,403 - 7,403New share issue costs - - (283) - (283)Share based payments - value of employee - 385 385 - 385services _____ _____ _____ _____ _____Balance at 31 December 2005 686 (9,645) 30,616 (4) 30,612 _____ _____ _____ _____ _____ Consolidated cash flow statementFor the six months ended 31 December 2005 (unaudited) Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 £000 £000 £000Cash flows from operating activities Operating loss (2,017) (2,180) (2,686)Adjustments for: Share based payment - value of employee services 385 372 779 Depreciation 51 22 99 Amortisation of intangible assets 42 41 83 Exchange gains (43) (6) (57) _____ _____ _____ (1,582) (1,751) (1,782)Changes in working capital(Increase)/decrease in inventories (121) 27 (287)Decrease/(increase) in receivables 1,429 530 (2,267)(Decrease)/increase in payables (1,321) 326 1,928Increase in provisions - - 23 _____ _____ _____Net cash outflow from operations (1,595) (868) (2,385) Taxation paid (74) (238) (238)Taxation received - 23 23Interest paid (25) (1) (18) _____ _____ _____Net cash used in operating activities (1,694) (1,084) (2,618) _____ _____ _____ Investing activitiesInterest received 113 148 248Purchases of property, plant and equipment (37) (73) (280)Acquisition of subsidiary undertaking, net of cash acquired - - (1,201) _____ _____ _____Net cash from/(used in) investing activities 76 75 (1,233) _____ _____ _____ Financing activitiesRepayments of obligations under finance lease (7) - (1)Proceeds from issue of new loan - - 135Proceeds from issue of share capital 7,420 - 195Share issue costs (283) - -Proceeds from issue of share capital - ESOT - - 222 _____ _____ _____Net cash from financing activities 7,130 - 551 _____ _____ _____ Net increase/(decrease) in cash and cash equivalents 5,512 (1,009) (3,300) Cash and cash equivalents at the beginning of the period/year 4,444 7,683 7,683Effect of foreign exchange rate changes 6 6 61 _____ _____ _____Cash and cash equivalents at end of period/year 9,962 6,680 4,444 _____ _____ _____ Notes to the Financial StatementsAt 31 December 2005 1. Basis of preparation The interim financial information for the six months ended 31 December 2005 isunaudited and has been prepared in accordance with the Group's accountingpolicies, based on IFRS as adopted by the European Union, that are expected toapply for the year ending 30 June 2006. IFRS remains subject to amendment andinterpretation by the International Accounting Standards Board (IASB) and thereis an ongoing process of review and endorsement by the European Commission. The interim financial information has not been audited and does not constitutestatutory accounts within the meaning of Section 240 of the Companies Act 1985but has been reviewed by the auditors in accordance with Bulletin 1999/4 issuedby the Auditing Practices Board. The Company's statutory accounts for the yearended 30 June 2005, prepared under UK GAAP, have been delivered to the Registrarof Companies; the report of the auditors on these accounts was unqualified anddid not contain a statement under Section 237 (2) or (3) of the Companies Act1985. 2. Revenue analysis An analysis of revenue type is given below: Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 £000 £000 £000 Product revenue 3,278 554 4,484Licence fees and milestones 217 236 2,257Royalties 216 6 230 _____ _____ _____ 3,711 796 6,971 _____ _____ _____ An analysis of turnover by geographical destination is given below: Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 £000 £000 £000 United Kingdom 348 116 752Rest of Europe 2,131 387 3,811United States of America 1,155 273 2,278Rest of World 77 20 130 _____ _____ _____ 3,711 796 6,971 _____ _____ _____ 3. Earnings per share The basic loss earnings per share has been calculated by dividing the loss forthe period/year, by the weighted average number of shares in existence for theperiod/year. Shares held by the Employee's Share Trust, including shares over which optionshave been granted to Directors and staff, have been excluded from the weightedaverage number of shares for the purposes of calculation of the loss per share. The loss and weighted average number of shares for the purpose of calculatingthe diluted loss per share are identical to those used for the loss per share at31 December 2005, 31 December 2004 and 30 June 2005, as the exercise of shareoptions would have the effect of reducing the loss per share and is thereforenot dilutive. Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005Basic and diluted EPSNet loss (£000) (1,929) (2,042) (2,501)Weighted average number of shares 53,903,261 47,556,689 49,055,798 _____ _____ _____Basic and diluted loss per share (3.58)p (4.29)p (5.09)p _____ _____ _____ 4. Trade and other receivables Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 £000 £000 £000 Trade debtors 2,980 1,035 4,201Other debtors 218 362 387Prepayments and accrued income 274 210 313 _____ _____ _____ 3,472 1,607 4,901 _____ _____ _____ 5. Trade and other payables Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 £000 £000 £000 Trade payables 1,588 599 2,475Other tax and social security 206 84 101Other creditors 167 168 732Accruals and deferred income 1,061 1,180 1,035 _____ _____ _____ 3,022 2,031 4,343 _____ _____ _____ Independent review report to Sinclair Pharma plc Introduction We have been instructed by the company to review the financial information forthe six months ended 31 December 2005 which comprises consolidated interimbalance sheet as at 31 December 2005 and the related consolidated interimstatements of income, cash flows and changes in shareholders' equity (unaudited)for the six months then ended and related notes. We have read the otherinformation contained in the interim report and considered whether it containsany apparent misstatements or material inconsistencies with the financialinformation. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority. As disclosed in note 1, the next annual financial statements of the group willbe prepared in accordance with International Financial Reporting Standards(IFRSs) adopted by the European Union. This interim report has been prepared inaccordance with the basis set out in Note 1. The accounting policies are consistent with those that the directors intend touse in the next annual financial statements. As explained in note 1, there is,however, a possibility that the directors may determine that some changes arenecessary when preparing the full annual financial statements for the first timein accordance with International Financial Reporting Standards (IFRSs) asadopted by the European Union. The IFRS standards and IFRIC interpretations thatwill be applicable and adopted for use in the European Union at 30 June 2006 arenot known with certainty at the time of preparing this interim financialinformation. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the disclosed accounting policies havebeen applied. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit and therefore provides a lower level of assurance.Accordingly we do not express an audit opinion on the financial information.This report, including the conclusion, has been prepared for and only for thecompany for the purpose of the Listing Rules of the Financial Services Authorityand for no other purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 December 2005. PricewaterhouseCoopers LLPChartered AccountantsCambridge10 March 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sinclair Pharma