TIDMNSCI
RNS Number : 6281C
NetScientific PLC
19 March 2014
NetScientific plc
('NetScientific' or the 'Group')
Preliminary results for the 12 months ended 31 December 2013
19 March 2014
NetScientific (AIM:NSCI), the biomedical and healthcare
technology investment group, has published its results for the year
ended 31 December 2013.
Highlights
-- GBP30.0 million (net of costs GBP28.6) raised via IPO on AIM
market of the London Stock Exchange in September 2013
-- Post money valuation of GBP57.4 million
-- Use of proceeds to fund commercialisation of two key
subsidiaries, further spin outs and an exciting pipeline of further
opportunities
-- Strengthened operational management team in key
subsidiaries
-- Investment in novel respiratory diagnostics company, ProAxsis
Ltd, a newly formed spin-out from Queen's University Belfast
-- Post-tax loss for the period of GBP4.3 million (2012: GBP1.5
million) which includes reorganization, AIM listing costs and share
based payments totalling GBP1.8 million
-- Available cash resources of GBP25.5 million (2012: GBP0.4
million)
Farad Azima, Chief Executive Officer, commented:
"Since September, NetScientific has strengthened its operational
management, adding six new senior executives across the Group -
bringing additional expertise in business development and product
engineering
The Group has accelerated the development of its existing
subsidiaries, added an advanced diagnostics company and made
significant progress with FDA - with major new initiatives underway
for 2014."
For further information, please contact
NetScientific plc Tel: +44 (0) 20 3590
Farad Azima, Chief Executive Officer 8877
Peter Thoms, Chief Financial Officer
Liberum (Nomad & Broker) Tel: +44 (0) 20 3100
Chris Bowman / Christopher Britton / Thomas Bective 2000
Bell Pottinger Tel: +44 (0) 20 7861
Daniel de Belder 3232
CHAIRMAN'S REPORT
Introduction
In the twelve months ended 31 December 2013, NetScientific Plc
('the Group') successfully completed an IPO on the AIM market of
the London Stock Exchange and continued to develop its strong
portfolio of innovative technology companies.
During the period, the Group deployed a significant amount of
its internal resource to preparing for its IPO, which culminated in
the Admission of NetScientific plc to AIM in September 2013. The
Group raised GBP30.0 million (GBP28.6 million net of expenses)
through the issue of 18,750,000 new shares at a placing price of
160p. The market capitalisation of the Group at the placing price
post fundraising was GBP57.4 million.
The Group's current portfolio contains six standalone
subsidiaries at a more advanced stage, two of which are close to
key value inflection points and are currently the primary focus of
the Group. It is planned the net proceeds of the Placing will be
used to fund working capital to accelerate to the market these two
leading portfolio companies, WANDA, Inc. and Vortex BioSciences,
Inc., whilst developing its other core subsidiary companies and
pipeline projects. Within the Group's portfolio there are now
eleven pipeline opportunities currently undergoing evaluation and
development.
Financial Results
The loss after tax for the year ended 31 December 2013 was
GBP4.3 million (31 December 2012: GBP1.5 million)
Net funds held by the Group at 31 December 2013 amounted to
GBP25.0 million and comprised cash and cash equivalents and
short-term deposits of GBP25.5 million less long term loans of
GBP0.5 million.
NetScientific Overview
NetScientific is a healthcare medical technology group that
identifies, develops and commercialises research and technologies
originating from leading universities, teaching hospitals and
research institutes globally, particularly in the United Kingdom
and the United States. The Group is primarily focused on
identifying and developing research and technologies for use in
five chronic disease areas within the healthcare diagnostics
sector: (i) cardiovascular; (ii) liver; (iii) cancer; (iv)
metabolic; and (v) digital health.
The Group's core strategy is to fund and develop translational
technologies that offer transformative benefits to peoples' lives
and society through improved diagnosis, monitoring and treatment of
chronic disease. Chronic diseases account for more than 70 per
cent. of healthcare expenses in each of the United States and the
United Kingdom, according to the Centers for Disease Control and
Prevention and the UK Department of Health. Accordingly, reducing
the cost of diagnosing, monitoring and treating chronic disease has
become one of the key challenges to the global healthcare sector.
Consequently, the Directors believe the Group's five areas of focus
represent highly attractive growth markets with significant unmet
medical need for technological development, and in which the
Group's management has a significant amount of experience,
expertise and strong existing networks. The Directors also believe
that focusing on these areas will provide the Group with a
competitive advantage over private equity funds and generalised IP
commercialisation companies, enabling it to create value for
shareholders.
Outlook
After a successful 2013 and the progress in the first few months
of 2014, the Board looks ahead with confidence and expects to
achieve significant progress with its portfolio companies in
2014.
On behalf of the Board I would like to thank our staff. They
have worked tirelessly to organise the Group for the AIM listing
and continue the commercialisation of the Group's portfolio. With
this on-going commitment I am convinced we will achieve continued
success in the coming year.
Sir Richard Sykes
Chairman
18 March 2014
CHIEF EXECUTIVE'S REPORT
Introduction
Since our IPO in September 2013, the Group has made good
progress in line with its operational and financial objectives,
with cash balances in excess of budget. The Group's key
subsidiaries have been the subject of intense development, with
particular focus on Wanda and Vortex.
Wanda, Inc.
NetScientific's telemedicine device company is developing a
major platform in Big Data Healthcare Analytics, to improve the
effectiveness of remote monitoring systems deployed in chronic
disease management. Wanda's achievements in the first six months
since our IPO include:
-- Appointed both a President and a CTO with strong backgrounds
and experience in Fortune 500 companies.
-- Established operational headquarters in Silicon Valley and
initiated the recruitment of a world-class team of engineers.
-- Ongoing clinical trials sponsored by the National Institute
of Health (NIH) in seven California tier-1 hospitals, to complete
later in 2014. Results continue to confirm statistically
significant improvements in patient outcome and in reductions in
re-hospitalisations, compared to conventional RMS without
Wanda.
-- Completed pre-submission filing with FDA, with the
expectation that FDA Class 1 & 2 will be achieved approximately
one year from final submission.
-- Commenced active discussions for corporate partnership
opportunities with a number of entities in Europe and the United
States.
Vortex BioSciences, Inc.
NetScientific's cancer diagnostics company is developing blood
test cancer diagnostics by detecting, quantifying and harvesting
Circulating Tumor Cells. These live CTCs offer important
possibilities in advanced therapeutics and personalised medicine.
The same post-IPO period has seen the following developments at
Vortex:
-- Clinical research and validation of Vortex systems have been
expanded to breast, lung, pancreas and colon cancers - enabled by
accelerated development of new techniques and instrumentation.
-- Important clinical collaboration has started with the
Stanford Cancer Centre to exploit the technology's ability to
capture live cancer cells from blood samples for improved diagnosis
and prognosis. This will potentially transform the selection of
treatments for patients and the development of new classes of
anticancer therapeutics.
-- Expanded clinical collaborations with physicians at UCLA
through our dedicated new research facility. Particular focus will
be on the analysis and identification of lung and pancreatic tumor
cells.
-- IP portfolio strengthened, with brand new Patent filings and Disclosures.
Other Key Subsidiaries
-- Glycotest, Inc. has initiated collaboration with the Baruch
Blumberg Institute (formerly the Institute of Hepatitis & Virus
Research), a leading liver cancer research centre. This
collaboration will focus on development of liver cancer diagnostic
panels and clinical analytics for liver disease.
-- QLIDA Diagnostics, Inc. has accelerated work on its
commercial prototype for smartphone-enabled cardiovascular disease
diagnostics and has expanded the team, with the appointment of VP
Engineering.
-- Glucosense Diagnostics Limited completed an initial twelve
patient clinical study of its non-invasive blood glucose sensor,
with encouraging results. A different clinical model will now be
implemented to extend and validate these.
Other Progress and Outlook
Since September, NetScientific has strengthened its operational
management, adding six new senior executives across the Group -
bringing additional expertise in business development and product
engineering.
Last month the Group announced an investment in the
award-winning ProAxsis Ltd in partnership with Queen's University
Belfast. ProAxsis will bring to the market novel point-of-care
medical diagnostics devices to monitor patients with Cystic
Fibrosis and other chronic respiratory conditions, such as Chronic
Obstructive Pulmonary Disease (COPD).
In summary, the Group has accelerated the development of its
existing subsidiaries, added an advanced diagnostics company and
made significant progress with FDA - with major new initiatives
underway for 2014.
Farad Azima
Chief Executive Officer
18 March 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
2013 2012
GBP GBP
Other operating income 177,667 16,000
Research and development expenditure 762,624 622,134
Share based payment 717,234 -
Reorganisation and AIM listing costs 1,123,508 -
Other administrative expenses 1,900,242 801,025
---------------------------------------- ---------------------------- --------------
Total administrative expenses (4,503,608) (1,423,159)
---------------------------- --------------
Loss from operations (4,325,941) (1,407,159)
Share of loss of joint ventures (27,832) (13,623)
---------------------------- --------------
(4,353,773) (1,420,782)
Finance income 37,566 -
Finance expense (35,210) (111,344)
---------------------------- --------------
Loss before taxation (4,351,417) (1,532,126)
Taxation 14,153 -
---------------------------- --------------
Loss for the year (4,337,264) (1,532,126)
============================ ==============
Other comprehensive income
Exchange difference on translation
of foreign operations 87,377 87,429
---------------------------- --------------
Total comprehensive expense for the
year (4,249,887) (1,444,697)
============================ ==============
Loss attributable to:
Owners of the parent (4,112,565) (1,423,145)
Non-controlling interests (224,699) (108,981)
-------------- --------------
(4,337,264) (1,532,126)
============== ==============
Total comprehensive expenses attributable
to:
Owners of the parent (4,025,188) (1,335,716)
Non-controlling interests (224,699) (108,981)
------------------------ --------------
(4,249,887) (1,444,697)
======================== ==============
Loss per Ordinary Share attributable
to the
ordinary equity holders of the parent: (0.21) (704.53)
======================== ==============
All other comprehensive income will be reclassified to retained
earnings on the ultimate sale of any relevant subsidiary
company.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2013
2013 2012
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 638,492 13,474
Property, plant and equipment 67,101 11,748
Investment in joint ventures 69,872 37,350
Available for sale investments 2 2
-------------- --------------
775,467 62,574
-------------- --------------
CURRENT ASSETS
Trade and other receivables 325,651 221,626
Cash and cash equivalents 25,546,951 410,788
-------------- --------------
25,872,602 632,414
-------------- --------------
TOTAL ASSETS 26,648,069 694,988
============== ==============
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (1,113,490) (799,864)
Loans and borrowings (3,250) (4,138,800)
-------------- --------------
(1,116,740) (4,938,664)
-------------- --------------
NON CURRENT LIABILITIES
Trade and other payables (49,723) -
Loans and borrowings (475,109) -
Provision for deferred tax (106,965) -
-------------- --------------
TOTAL LIABILITIES (1,748,537) (4,938,664)
============== ==============
TOTAL NET ASSETS/(LIABILITIES) 24,899,532 (4,243,676)
============== ==============
ISSUED CAPITAL AND RESERVES
ATTRIBUTABLE TO THE PARENT
Called up share capital 1,795,101 1
Share premium account 30,844,552 -
Capital reserve account 236,745 -
Foreign exchange reserve 150,131 62,754
Retained earnings (7,459,726) (4,064,395)
-------------- --------------
Equity attributable to the parent 25,566,803 (4,001,640)
Non-controlling interests (667,271) (242,036)
-------------- --------------
TOTAL EQUITY 24,899,532 (4,243,676)
============== ==============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Retained Foreign Capital Share Share Total Non- Total
Earnings Exchange Reserve Capital Premium Attributable Controlling Equity
Reserve Reserve to Interest
Equity holders
GBP GBP GBP GBP GBP of parent GBP GBP
GBP
Balance at
1 January
2012 (2,641,250) (24,675) - 1 - (2,665,925) (133,054) (2,798,978)
Comprehensive
Income
Loss for
the period (1,423,145) - - - - (1,423,145) (108,982) (1,532,127)
Other
comprehensive
income - 87,429 - - - 87,429 - 87,429
-------------- --------- -------- -------- -------- --------------------- ------------ --------------
Total
comprehensive
income (1,423,145) 87,429 - - - (1,335,716) (108,982) (1,444,698)
-------------- --------- -------- -------- -------- --------------------- ------------ --------------
Balance at
31 December
2012 (4,064,395) 62,754 - 1 - (4,001,640) (242,036) (4,243,676)
============== ========= ======== ======== ======== ===================== ============ ==============
Balance at
1 January
2013 (4,064,395) 62,754 - 1 - (4,001,640) (242,036) (4,243,676)
Comprehensive
Income
Loss for
the year (4,112,565) - - - - (4,112,565) (224,699) (4,337,264)
Other
comprehensive
income - 87,377 - - - 87,377 - 87,377
Acquisition
of subsidiary - - - - - - (203,357) (203,357)
Increase
in subsidiary
shareholding - - - - - - (6,772) (6,772)
Dilution
in subsidiary
shareholdings - - - - - - 9,593 9,593
Issue of
share capital
Transaction
costs in - - - 1,795,100 32,279,998 34,075,098 - 34,075,098
respect of
share issues - - - - (1,435,446) (1,435,446) - (1,435,446)
Waiver of
loan interest
on share
issue - - 236,745 - - 236,745 - 236,745
Share based
payments 717,234 - - - - 717,234 - 717,234
-------------- ---------- ---------- ------------ ------------- ------------- ------------ -------------
Total
comprehensive
income (3,395,331) 87,377 236,745 1,795,100 30,844,552 29,568,443 (425,235) 29,143,208
-------------- ---------- ---------- ------------ ------------- ------------- ------------ -------------
Balance at
31 December
2013 (7,459,726) 150,131 236,745 1,795,101 30,844,552 25,566,803 (667,271) 24,899,532
============== ========== ========== ============ ============= ============= ============ =============
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2013
2013 2012
GBP GBP
Cash flows from operating activities
Loss before tax (4,351,417) (1,532,126)
Adjustments for:
Depreciation 5,508 2,888
Amortisation 1,616 1,256
Share of loss of joint ventures 27,832 13,623
Impairment of unlisted investments - 2
Share based payment expense 717,234 -
Finance Income (37,566) -
Finance costs 35,210 111,344
---------------------- --------------
(3,601,583) (1,403,013)
Change in trade and other receivables (245,100) (105,509)
Change in trade and other payables 167,977 278,866
---------------------- --------------
Cash used in operations (3,678,706) (1,229,656)
---------------------- --------------
Cash flows from investing activities
Investment in joint venture (60,354) (18,269)
Purchase of intangible assets - (3,718)
Purchase of property, plant and equipment (60,861) (3,162)
Interest received 37,566 -
Increase shareholding in subsidiary undertaking (6,772) -
Net cash used in investing activities (90,421) (25,149)
---------------------- --------------
Cash flows from financing activities
Proceeds from loan 428,457 861,475
Proceeds from share issue 29,912,750 -
Share issue cost (1,435,446) -
Cash acquired on acquisition of subsidiary 1,973 -
Net cash from financing activities 28,907,734 861,475
---------------------- --------------
Increase/(decrease) in cash and cash equivalents 25,138,607 (393,330)
Cash and cash equivalents at beginning
of year 410,788 830,211
Exchange losses on cash and cash equivalents (2,444) (26,093)
---------------------- --------------
Cash and cash equivalents at end of year 25,546,951 410,788
====================== ==============
Notes
NetScientific plc was incorporated on 12 April 2012. On 8 March
2013 NetScientific plc acquired the entire issued share capital of
NetScientific UK Limited and NetScientific America Inc. via a share
for share exchange with Cyrus Holdings Limited. The acquisitions of
the subsidiaries are deemed to be 'combinations under common
control' as ultimate control before and after the acquisition was
the same. As a result, these transactions are outside the scope of
IFRS 3 "Business combinations" and have been included under the
principles of merger accounting as set out under UK GAAP.
Accordingly, although the companies which comprise the Group did
not form a legal group for the entire period, the current period
and comparative results comprise the results of the subsidiary
companies and NetScientific plc, as if the Group has been in
existence throughout the entire period.
The financial information of the Group set out above does not
constitute "statutory accounts" for the purposes of Section 435 of
the Companies Act 2006. The Group's first audited financial
statements for the year ended 31 December 2013 were approved by the
Board of directors on 18 March 2014 and will be delivered to the
Registrar of Companies for England and Wales in due course.
The report of the auditor on those financial statements was
unqualified, did not include any references to any matters to which
the auditors drew attention by way of emphasis without qualifying
their report and did not contain a statement under Section 498(2)
or Section 498(3) of the Companies Act 2006.
Whilst the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting
Standards ('IFRSs') as adopted by the European Union, this
announcement does not itself contain sufficient information to
comply with those IFRSs.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DBGDXBBBBGSI
Netscientific (LSE:NSCI)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Netscientific (LSE:NSCI)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
