TIDMNSCI
RNS Number : 3136S
NetScientific PLC
23 September 2014
NetScientific plc
('NetScientific' or 'the Company' or 'the Group')
Half-Yearly Report
23 September 2014: NetScientific (AIM: NSCI), the global
biomedical and healthcare technology group today announces its half
yearly report for the six months ended 30 June 2014.
Highlights
-- Significant progress made in advancing the technologies in
two core subsidiaries, WandaHealth and Vortex Biosciences.
-- New commercial partnership with Peter Thiel's Breakout Labs
which provides
NetScientific with direct access to cutting-edge technologies in
Silicon Valley.
-- Post period end investments were made in two new later-stage
companies, G-Tech Medical and Longevity Biotech.
-- Strict expenditure controls and rigorous criteria for new
investments resulted in higher than budget closing cash balance of
GBP22.5 million.
Farad Azima, CEO of NetScientific, said:
"The Group has made significant progress so far this year in
bringing our subsidiaries closer to achieving value inflection
points which will allow a series of high performance exits. At
NetScientific our view is that, science knows no borders.
Therefore, we anticipate securing further additional strategic
alliances, which will give us worldwide access to other
transformative technologies."
-Ends-
For more information, please visit the website at
www.netscientific.net.
Contact Details
NetScientific plc Tel: +44 (0) 20 3290
Farad Azima 8877
Peter Thoms
Liberum (NOMAD and Broker) Tel: +44 (0)20 3100 2000
Chris Bowman / Christopher Britton
/ Thomas Bective
Instinctif Partners Tel: +44 (0) 20 7457
Melanie Toyne-Sewell / Tim Watson 2020
Email: netscientific@instinctif.com
Copies of the unaudited interim results for the six months ended
30 June 2014 are available on the Group's website at
www.netscientific.net.
Overview
Over the six-month period under review, the Group made
significant progress, in particular in two of its core
subsidiaries, WandaHealth and Vortex Biosciences. Strict
expenditure controls and rigorous criteria for new investments
resulted in higher than budget closing cash balance of GBP22.5
million.
In the same period, the Group evaluated new enabling
technologies to underpin its pipeline. Validated opportunities are
being secured from both research institutes and new commercial
alliances, as per our March announcement relating to Peter Thiel's
Breakout Labs. This unique relationship provides NetScientific with
direct access to cutting-edge technologies in Silicon Valley.
Post period end, the Group announced an important research
programme in DNA sequencing, and investments in two later-stage
BioMed companies, G-Tech Medical and Longevity Biotech.
Strategy
NetScientific's goal is to build a group of subsidiaries and
portfolio investments based on transformative technologies in i)
digital health, ii) advanced medical diagnostics and iii) novel
therapeutics in regenerative medicine. For the most part, these
technologies have faster development timelines; lower capital
requirements and shorter regulatory pathways.
At NetScientific, 'science knows no borders' and the Group will
seek to secure further valuable technologies through privileged
access to global centres of excellence which have been
painstakingly developed over many years.
The Group has assembled experienced management teams, eminent
scientific advisors and solid infrastructures in the UK and the
United States. In addition, it operates a centralised shared
ecosystem of finance, banking, legal, marketing, patenting and
licensing - saving huge costs to the subsidiaries. NetScientific
also encourages its subsidiaries to leverage potential synergies
among themselves.
NetScientific is an active investor, taking leadership roles and
providing extensive management support to drive its investments to
value inflection points, to allow a series of high performance
exits.
Key Subsidiaries
WandaHealth is cloud-based predictive big-data analytics for the
remote monitoring of patients with chronic disease - the first
application of which is in congestive heart failure, the leading
cause of hospital re-admission. Successful clinical trials were
completed ahead of time and regulatory approvals are expected in
Q1, 2015. Discussions have commenced with a major US hospital group
in preparation for commercial roll-out.
Vortex is developing a simplified, high-speed blood test for a
wide range of metastatic cancers - a 'liquid biopsy' with no
requirements for sample prep. Important applications include
diagnostics, prognosis during treatment, and 'personalised'
therapeutics. Early research collaborators include UCLA, Harvard
University and Stanford Cancer Institute. Commercial product launch
is expected in 2015.
Financial Results
Research and development expenditure, which was largely in the
core subsidiaries, for the period was GBP1.4m (H1 2013:
GBP0.3m).
The pre-tax loss was GBP2.6m (H1 2013: GBP1.0m) reflecting the
expenditure in R&D.
Cash and deposit balances as at 30 June 2014 were GBP22.5m (H1
2013: GBP0.1m) and the cash outflow for the period was GBP2.8m (H1
2013: GBP0.3m).
Outlook
In summary, the Group has made significant progress in the
development of its existing subsidiaries and will continue to drive
its investments to specific value inflection points. In addition,
the Group anticipates adding further strategic alliances to provide
access to investment opportunities in our areas of interest.
NetScientific plc
Unaudited Consolidated Statement of Comprehensive Income
For six months ended 30 June 2014
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 ended 30 31 December
June 2014 June 2013 2013
GBP GBP GBP
Other operating income 175,218 10,000 177,667
------------------------------------------ ------------- ------------- --------------
Research and development expenditure (1,389,622) (259,772) (762,624)
Other administrative expenses (952,866) (757,640) (1,900,242)
Share based payment (425,198) - (717,234)
Reorganisation and AIM listing
costs - - (1,123,508)
------------------------------------------ ------------- ------------- --------------
Total administrative expenses (2,767,686) (1,017,412) (4,503,608)
------------- ------------- --------------
Loss from operations (2,592,468) (1,007,412) (4,325,941)
Share of loss of joint venture (11,889) (22,051) (27,832)
------------- ------------- --------------
(2,604,357) (1,029,463) (4,353,773)
Finance income 36,316 17,603 37,566
Finance expense (19,588) (28,396) (35,210)
------------- ------------- --------------
Loss before taxation (2,587,629) (1,040,256) (4,351,417)
Taxation 3,616 - 14,153
------------- ------------- --------------
Loss for the period (2,584,013) (1,040,256) (4,337,264)
Other comprehensive income:
Items that will or may be reclassified
to profit or loss in subsequent
periods
Exchange differences on translation
of foreign operations (197,807) (29,796) 87,377
------------- ------------- --------------
Total comprehensive expense for
the period (2,781,820) (1,070,052) (4,249,887)
============= ============= ==============
Loss for the period attributable
to:
Owners of the parent (2,260,103) (895,949) (4,112,565)
Non-controlling interest (323,910) (144,307) (224,699)
------------- ------------- --------------
(2,584,013) (1,040,256) (4,337,264)
============= ============= ==============
Total comprehensive expense attributable
to:
Owners of the parent (2,457,910) (925,745) (4,025,188)
Non-controlling interest (323,910) (144,307) (224,699)
------------- ------------- --------------
(2,781,820) (1,070,052) (4,249,887)
============= ============= ==============
Loss per Ordinary Share attributable
to the ordinary equity holders
of the parent: (0.06) (0.08) (0.21)
============= ============= ==============
NetScientific plc
Unaudited Consolidated Interim Statement of Financial Position
As at 30 June 2014
Unaudited Unaudited Audited
30 June 30 June 31 December
2014 2013 2013
GBP GBP GBP
Assets
Non-current assets
Intangible assets 628,211 427,494 638,492
Property, plant and equipment 208,711 9,746 67,101
Investments in equity-accounted
joint ventures 76,834 62,099 69,872
Available for sale investments 149,578 2 2
1,063,334 499,341 775,467
Current assets
Trade and other receivables 452,788 170,147 325,651
Cash and cash equivalents 22,512,191 116,544 25,546,951
------------- ------------- ---------------
22,964,979 286,691 25,872,602
------------- ------------- ---------------
Total assets 24,028,313 786,032 26,648,069
------------- ------------- ---------------
Liabilities
Current liabilities
Trade and other payables (796,107) (1,578,739) (1,113,490)
Loans and borrowings (3,250) (165,646) (3,250)
------------- ------------- ---------------
(799,357) (1,744,385) (1,116,740)
Non-current liabilities
Trade and other payables (47,962) (87,429) (49,723)
Loans and borrowings (484,760) (223,363) (475,109)
Deferred tax liability (103,176) - (106,965)
------------- ------------- ---------------
(635,898) (310,792) (631,797)
------------- ------------- ---------------
Total liabilities (1,435,255) (2,055,177) (1,748,537)
------------- ------------- ---------------
Total net assets/(liabilities) 22,593,058 (1,269,145) 24,899,532
============= ============= ===============
NetScientific plc
Unaudited Consolidated Interim Statement of Financial Position
As at 30 June 2014
Unaudited Unaudited Audited
30 June 30 June 31 December
2014 2013 2013
GBP GBP GBP
Issued capital and reserves
attributable
to the parent
Called up share capital 1,795,101 857,501 1,795,101
Share premium account 30,844,552 3,217,497 30,844,552
Capital reserve account 236,745 236,745 236,745
Foreign exchange reserve (47,676) 32,958 150,131
Retained earnings reserve (9,774,684) (4,960,344) (7,459,726)
----------- ----------- ------------
Equity attributable to the parent 23,054,038 (615,643) 25,566,803
Non-controlling interests (460,980) (653,502) (667,271)
----------- ----------- ------------
Total equity 22,593,058 (1,269,145) 24,899,532
=========== =========== ============
NetScientific plc
Unaudited Consolidated Interim Statement of Changes in Equity
As at 30 June 2014
Share Share Capital Retained Foreign Total Non- Total
Capital Premium Reserve Earnings Exchange Attributable Controlling Equity
Reserved Reserve To equity Interest
Holders
of
Parent
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2013 1 - - (4,064,395) 62,754 (4,001,640) (242,036) (4,243,676)
Comprehensive Income
Loss for the period - - - (895,949) - (895,949) (144,307) (1,040,256)
Other comprehensive
income - - - - (29,796) (29,796) - (29,796)
Acquisition of
subsidiary - - - - - - (267,159) (267,159)
Issue of share
capital 857,500 3,217,497 - - - 4,074,997 - 4,074,997
Capital
contribution - - 236,745 - - 236,745 - 236,745
---------- ------------ -------- -------------- --------- -------------- ------------ ---------------------
Total comprehensive
income 857,500 3,217,497 236,745 (895,949) (29,796) 3,385,997 (411,466) 2,974,531
---------- ------------ -------- -------------- --------- -------------- ------------ ---------------------
Balance at 30 June
2013 857,501 3,217,497 236,745 (4,960,344) 32,958 (615,643) (653,502) (1,269,145)
========== ============ ======== ============== ========= ============== ============ =====================
Balance at 1 July
2013 857,501 3,217,497 236,745 (4,960,344) 32,958 (615,643) (653,502) (1,269,145)
Comprehensive income
Loss for the period - - - (3,216,616) - (3,216,616) (80,392) (3,297,008)
Other comprehensive
income - - - - 117,173 117,173 - 117,173
Increase in
subsidiary
shareholdings - - - - - - (6,772) (6,772)
Dilution in
subsidiary
shareholdings - - - - - - 9,593 9,593
Revision to
acquisition
of subsidiary - - - - - - 63,802 63,802
Issue of share
capital 937,600 29,062,501 - - - 30,000,101 - 30,000,101
Transaction costs
in respect
of share issue - (1,435,446) - - - (1,435,446) - (1,435,446)
Share based
payments - - - 717,234 - 717,234 - 717,234
---------- ------------ -------- -------------- --------- -------------- ------------ ---------------------
Total
comprehensive
income 937,600 27,627,055 - (2,499,382) 117,173 26,182,446 (13,769) 26,168,677
---------- ------------ -------- -------------- --------- -------------- ------------ ---------------------
Balance at 31
December
2013 1,795,101 30,844,552 236,745 (7,459,726) 150,131 25,566,803 (667,271) 24,899,532
========== ============ ======== ============== ========= ============== ============ =====================
NetScientific plc
Unaudited Consolidated Interim Statement of Changes in
Equity
As at 30 June 2014
Share Share Capital Retained Foreign Total Non- Total
Capital Premium Reserve Earnings Exchange Attributable Controlling Equity
Reserved Reserve To equity Interest
Holders
of
Parent
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2014 1,795,101 30,844,552 236,745 (7,459,726) 150,131 25,566,803 (667,271) 24,899,532
Comprehensive
income
Loss for the
period - - - (2,260,103) - (2,260,103) (323,910) (2,584,013)
Other
comprehensive
income - - - - (197,807) (197,807) - (197,807)
Acquisition of
subsidiary - - - - - - 52,000 52,000
Increase in
subsidiary
shareholding - - - (489,893) - (489,893) 489,893 -
Dilution in
subsidiary
shareholding - - - 9,840 - 9,840 (9,840) -
Foreign
exchange
differences - - - - - - (1,852) (1,852)
Share based
payments - - - 425,198 - 425,198 - 425,198
---------- ----------- -------- ------------ ---------- ------------- ------------ ------------
Total
comprehensive
income - - - (2,314,958) (197,807) (2,512,765) 206,291 (2,306,474)
---------- ----------- -------- ------------ ---------- ------------- ------------ ------------
Balance at 30
June 2014 1,795,101 30,844,552 236,745 (9,774,684) (47,676) 23,054,038 (460,980) 22,593,058
========== =========== ======== ============ ========== ============= ============ ============
NetScientific Plc
Unaudited Consolidated Interim Statement of Cash Flows
For the six months ended 30 June 2014
Unaudited Unaudited Audited
six months six months Year ended
ended 30 ended 30 31 December
June June 2013
2014 2013
GBP GBP GBP
Cash flows from operating activities
Loss before tax (2,587,629) (1,040,256) (4,351,417)
Adjustments for:
Depreciation 24,376 2,001 5,508
Amortisation 807 808 1,616
Share of loss in joint venture 11,889 22,051 27,832
Share based payment expense 425,198 - 717,234
Tax credit received 14,153 - -
Finance income (36,316) (17,603) (37,566)
Finance expense 19,588 28,396 35,210
------------- -------------- --------------
Cash flows from operations before
changes
in working capital (2,127,934) (1,004,603) (3,601,583)
Change in trade and other receivables (141,883) (104,147) (245,100)
Change in trade and other payables (293,034) 491,699 167,977
------------- -------------- --------------
Cash used in operations (2,562,851) (617,051) (3,678,706)
------------- -------------- --------------
Cash flows from investing activities
Investment in joint venture (21,413) (46,800) (60,354)
Purchase of available for sale investment (149,576) - -
Purchase of property, plant and
equipment (169,382) - (60,861)
Interest received 36,517 17,603 37,566
Increase in subsidiary shareholding - - (6,772)
------------- -------------- --------------
Net cash used in investing activities (303,854) (29,197) (90,421)
Cash flows from financing activities
Cash acquired from acquisition of
subsidiary 52,000 2,013 1,973
Proceeds from loans - 333,749 428,457
Proceeds from share issue - - 29,912,750
Share issue cost - - (1,435,446)
------------- -------------- --------------
Net cash from financing activities 52,000 335,762 28,907,734
------------- -------------- --------------
Net (decrease)/increase in cash
and cash equivalents (2,814,705) (310,486) 25,138,607
Exchange (losses)/gains on cash
and cash equivalents (220,055) 16,242 (2,444)
Cash and cash equivalents at beginning
of period 25,546,951 410,788 410,788
------------- -------------- --------------
Cash and cash equivalents at end
of period 22,512,191 116,544 25,546,951
============== ==============
1. Accounting Polices
Basis of preparation
The interim financial statements, which are unaudited, have been
prepared on the basis of the accounting policies expected to apply
for the financial year to 31 December 2014 and in accordance with
recognition and measurement principles of International Financial
Reporting Standards (IFRSs) as endorsed by the European Union. The
accounting policies applied in the preparation of these interim
financial statements are consistent with those used in the
financial statements for the year ended 31 December 2013.
The interim financial statements do not include all of the
information required for full annual financial statements and do
not comply with all the disclosures in IAS 34 'Interim Financial
Reporting'. Accordingly, whilst the interim statements have been
prepared in accordance with IFRSs, they cannot be construed as
being in full compliance with IFRSs.
The financial information for the year ended 31 December 2013
does not constitute the full statutory accounts for that period.
The Annual Report and Financial Statements for the year ended 31
December 2013 have been filed with the Registrar of Companies. The
Independent Auditor's Report on the Report and Financial Statements
for the year ended 31 December 2013 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
Going Concern
The directors have prepared and reviewed financial forecasts.
After due consideration of these forecasts and current cash
resources, the directors consider that the Company and Group have
adequate financial resources to continue in operational existence
for the foreseeable future (being at least twelve months from the
date of this report), and for this reason the financial statements
have been prepared on a going concern basis.
2. Acquisitions
During the period the Group acquired a minority holding of 2.18%
in Cytovale, Inc. an early stage life sciences company based in San
Francisco, USA commercialising microfluidic technologies that
enable high through put single cell analysis.
Subsidiaries
During the period the Group acquired a controlling interest of
57% in Proaxsis Limited, a recently formed company involved in the
development of a range of novel medical diagnostic tests to enable
routine monitoring of patients with Cystic Fibrosis and other
chronic respiratory conditions such as Chronic Obstructive
Pulmonary Disease.
3. Tax Credit
The tax credit of GBP3,616 (six months ended 30 June 2013:
GBPNil: year ended 31 December 2013: GBP14,153) is in relation to a
research and development tax credit receivable in respect of a
subsidiary company for a prior period.
4. Loss per Ordinary Share
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2014 2013 2013
GBP GBP GBP
Loss attributable to equity
holders of the
Company (2,260,103) (895,949) (4,112,565)
Weighted average number of
ordinary
shares in issue 35,902,020 10,899,692 19,558,458
The loss attributable to ordinary shareholders and weighted
average number of ordinary shares for the purpose of calculating
the diluted earnings per ordinary share are identical to those used
for basic earnings per share, as whilst the parent company has
share options in existence they are not dilutive as their exercise
would have the effect of reducing the loss per ordinary share. At
30 June 2014 there were 2,782,405 options outstanding (30 June
2013: Nil options outstanding: 31 December 2013: 2,513,140 options
outstanding).
INDEPENDENT REVIEW REPORT TO NETSCIENTIFIC PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2014 which comprises the Consolidated
Interim Statement of Comprehensive Income, the Consolidated Interim
Statement of Financial Position, the Consolidated Interim Statement
of Changes in Equity, the Consolidated Interim Statement of Cash
Flows and the related notes 1 to 4.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the Company's annual
accounts having regard to the accounting standards applicable such
accounts.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2014 is not prepared, in all material respects, in accordance
with the rules of the London Stock Exchange for companies trading
securities on AIM.
BDO LLP
Chartered Accountants and Registered Auditors
Southampton
United Kingdom
22 September 2014
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KLLFLZKFBBBB
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
