RNS Number:4484T
Medical Marketing Int'l Group PLC
19 December 2003
Immediate Release 19 December 2003
MEDICAL MARKETING INTERNATIONAL GROUP PLC (MMI)
INTERIM RESULTS ANNOUNCEMENT
For the six months ended 30 September 2003
Cambridge, UK, 19 December 2003, Medical Marketing International Group plc "MMI"
(LSE: MMG), the global technology management company today announced its interim
results for the six months ended 30th September 2003.
HIGHLIGHTS
* Significant progress in Oncosense cancer therapy subsidiary
* Significant progress in Viratis HIV/AIDS therapy joint venture
* Investment progress in BioScience VCT
* Strengthening of NHS client relationships
* Bioscience Innovation Centre launches Lab Hotel(R)
* Institutional placing raises #1.86m in November 2003
FINANCIAL HIGHLIGHTS
* Administrative expenses reduced by 8%
* Excluding development costs in subsidiaries - administrative
expenses reduced by 16%
* Operational loss (excluding development costs of Oncosense/ Viratis/
Endozyme/ Blaven) reduced by 10%
* Revenue from BioScience VCT maintained
* Bioscience Innovation Centre income maintained
* Post placing cash balances of #2.2m
David Best, Executive Chairman said:-
"With a strong portfolio and pipeline, with a lean and established business
model and good cash reserves, we look forward to the future with confidence."
For further information, contact:
David Best - Executive Chairman
MMI Group Tel: +44 (0)1223 477677
www.mmigroup.co.uk
Lisa Baderoon lisab@buchanan.uk.com
Buchanan Communications Tel: +44 (0)20 7466 5000
CHAIRMAN'S STATEMENT
I am delighted to be able to report that MMI has made significant progress in
most aspects of its business during the first six months of the current
financial year, and in particular in its "bio baby" portfolio. Similarly our
investment in the BioScience VCT is continuing to add to our income and the Fund
has started to make investments. The difficult operating conditions and the
reduction in bank interest received lead to a reduction in income. Despite this,
excluding the increased development costs in our biobabies, we have been able to
reduce our operating loss by 10% by keeping our underlying costs under control.
Our focus on areas of unmet medical need, such as cancer and AIDS, coupled with
the lowest cost-base in the sector has lead, we believe, to a partial recovery
in the Company's share price where we are currently the peer group leader. In
addition, the MMI business model has attracted institutional investor interest
enabling us to successfully raise, in November 2003, #1.86m from existing and
new institutional shareholders thus adding to our cash balances which are now
sufficient for our current needs.
In Oncosense, our wholly-owned cancer therapy subsidiary, we now have over 20
compounds based on the metal ruthenium. Most of these compounds have now been
shown to be highly active against human tumour models, in most cases as active
or more active than the class-leading therapies based on the metal platinum. We
now know that each compound has its own activity profile and this, coupled with
encouraging toxicity data leads us to believe that we may have the potential for
a whole new class of cancer therapies with activity against most tumour types,
including those that are currently difficult to treat. Our commercial position
with ruthenium was also strengthened by the news that patents in Europe will be
granted. Significant progress was also made with our pineapple extracts which
have now been purified, successfully tested on human cancer cells and which are
currently being tested on in-vivo models. We anticipate further progress towards
clinical trials with both these programmes during the coming year.
Viratis, our joint-venture with Kings and Queen Mary College, London has now
shown that the ribozyme-based anti-viral therapy has a high level of penetration
into human cells resulting in a significant reduction of HIV/AID's viruses in
the cell. Again we anticipate further progress to clinical trials in the next
year. Given the considerable progress in both Oncosense and Viratis we decided
it was in shareholders interests to use MMI funds and resources to secure these
developments rather than dilute our holdings in these subsidiaries by bringing
in third party funding. This use of MMI's human and financial resources is
likely to increase as we get closer to clinical trials.
MMI's fee income from the BioScience VCT was maintained and now that the Fund
has started to invest, we anticipate a significant increase in fees for our due
diligence service, Tek-check(R). Similarly, as investment sentiment improves
within the life sciences sector, we also expect to increase our provision of the
Tek-check(R) service for other investment organisations which require a third
party evaluation of a technology or company prior to investment and as part of
their due diligence strategy.
We have continued to grow our technology management business for NHS clients,
and in particular with the National Blood Service (NBS). We have now completed
our first technology audit for the Bristol laboratories of NBS. The technology
audit has reviewed all the research and development at this, the first of
fifteen NBS laboratory sites, and has identified areas of commercial potential.
This first audit has lead to a number of licensing deals for NBS and may
potentially lead to a number of spin-out companies in the future. The European
Clinical Trials Directive will become UK law on 4th May 2004 and, amongst other
things, will mean that clinical trials must use medicines manufactured to GMP
standards. NBS has one of the only accredited GMP manufacturing facilities in
the public sector and together we intend to grow the income from this and
collaborate further with NBS to facilitate the entry of biopharmaceuticals to
early clinical trials. We will also roll-out the technology audit programme to
other NBS sites starting in Cambridge.
Our Bioscience Innovation Centre (BIC) continued to enjoy 80% occupancy and
rental income was maintained despite the very slow business property market. The
provision of specialist laboratory space and skill in BIC has given us an
advantage over general property offerings and we have now begun to implement our
Lab Hotel(R) plans. Lab Hotel(R) will allow young biotech companies to have access
to state-of-the-art equipment on a short-term rental basis. The equipment will
be supplied to MMI by global leaders in laboratory equipment and operated by
MMI's staff to the highest industrial standards giving young companies the ideal
resources vital to their success. In the short-term, this will mean as planned,
a reduction in rental income as we take back space, previously sub-let to
non-biotech companies. We believe that Lab Hotel(R) will enable us to turn BIC
into the place to start a biotech company, right at the heart of Europe's
largest technology cluster. The continued development of BIC should lead to
increased income and further opportunities to take equity stakes in exciting
biotech businesses. Lab Hotel(R) has already reached agreement with Pall
Biomedical, a world leader in filtration systems and other agreements are
expected to follow.
During the last few years, technology shares have been under considerable
pressure. MMI's focus on areas of unmet medical need such as cancer and AIDS,
coupled with our continued downward pressure on costs, has we believe lead to a
partial recovery in our value. We have lead and continue to lead the share price
recovery in our peer group and we hope that investors will increasingly
recognise the strength and value in MMI's business model. We continue to have no
bank borrowings and following the institutional placing we have sufficient funds
for our current needs.
Although operating conditions are likely to remain difficult in the short term,
we expect there to be significant progress in our existing portfolio of
biobabies and we are currently exploring a number of exciting opportunities that
might add to the strength and value of the portfolio. We are encouraged by the
Chancellor's pre-budget statement which underlines his commitment to the VCT
sector and we therefore expect further progress with the Bioscience VCT should
the Chancellor's actions lead to an increase in funds invested in VCT's. In
addition we continue to explore opportunities to build on the technology advisor
aspects of our business and our due diligence service towards becoming fund
managers. We will continue to develop our Bioscience Innovation Centre as we add
our Lab Hotel(R) facility to our Tek-Assist and MTS programmes with the aim of
creating a global centre of excellence that attracts the very best
bio-therapeutic start-ups to our portfolio.
With a strong portfolio and pipeline, with a lean and established business model
and good cash reserves, we look forward to the future with confidence.
David Best
Executive Chairman
19th December 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 6 months ended 30th September 2003
Note 6 Months to 6 Months to 12 Months to
30/09/03 30/09/02 31/03/03
(unaudited) (unaudited) (audited)
# # #
Turnover 2 174,724 246,011 461,243
Administrative 866,280 938,939 1,890,120
expenses --------- --------- ----------
Operating (loss) (691,556) (692,928) (1,428,877)
Other interest 6,755 24,346 42,517
receivable
Interest payable (1,681) (1,804) (3,362)
--------- --------- ----------
5,074 22,542 39,155
(Loss) on ordinary (686,482) (670,386) (1,389,722)
activities before taxation
Tax on (loss) 3 - - -
--------- --------- ----------
Retained (loss) on
ordinary
activities after (686,482) (670,386) (1,389,722)
taxation ========= ========= ==========
Basic (loss) per 4 (1.61)p (1.60)p (3.30)p
ordinary share ========= ========= ==========
Diluted (loss) per (1.61)p (1.60)p (3.30)p
share ========= ========= ==========
CONSOLIDATED BALANCE SHEET
30th September 2003
30/09/03 30/09/02 31/03/03
(unaudited) (unaudited) (audited)
# # #
FIXED ASSETS
Intangible fixed assets 1,686,002 1,786,668 1,736,335
Tangible assets 105,181 161,270 133,944
---------- ---------- ----------
1,791,183 1,947,938 1,870,279
---------- ---------- ----------
CURRENT ASSETS
Debtors 255,577 270,803 256,848
Investments 589,711 589,711 589,711
Cash at bank and in hand 326,817 1,599,056 1,008,998
---------- ---------- ----------
1,172,105 2,459,570 1,855,557
CREDITORS:
Amounts falling due within one 251,373 240,335 342,698
year ---------- ---------- ----------
NET CURRENT ASSETS 920,732 2,219,235 1,512,859
---------- ---------- ----------
TOTAL ASSETS LESS
CURRENT LIABILITIES 2,711,915 4,167,173 3,383,138
CREDITORS
Amounts falling due after 33,230 84,270 19,571
one year ---------- ---------- ----------
NET ASSETS 2,678,685 4,082,903 3,363,567
========== ========== ==========
CAPITAL AND RESERVES
Called up share capital 85,020 84,970 84,970
Share premium account 4,942,717 4,941,167 4,941,167
Other reserves 1,719,733 1,719,733 1,719,733
Profit and loss account (4,068,785) (2,662,967) (3,382,303)
---------- ---------- ----------
EQUITY SHAREHOLDERS' FUNDS 2,678,685 4,082,903 3,363,567
========== ========== ==========
CONSOLIDATED CASH FLOW STATEMENT
30th September 2003
Note 30/09/03 30/09/02 31/03/03
(unaudited) (unaudited) (audited)
# # #
Cash outflow from
operating
activities 5 (688,855) (580,246) (1,230,383)
Returns on investments
and
servicing of finance 5,074 22,542 39,155
Taxation - - -
Capital expenditure and - (54,084) (3,931)
financial investment ---------- ---------- ----------
Net cash outflow
before use of
liquid resources (683,781) (611,788) (1,195,159)
Management of liquid 500,000 (740,000) (90,000)
resources
Financing 1,600 1,542,414 1,535,727.00
---------- ---------- ----------
Increase (Decrease) in (182,181) 190,626 250,568
cash ========== ========== ==========
Notes to the Interim Statements
For the six months ended 30th September 2003
1. Accounting Policies
The accounting policies used in the preparation of the interim accounts are
consistent with those used in the preparation of the audited annual accounts for
the year ended 31 March 2003. The Group financial information consolidates the
accounts of the company and all its material subsidiary undertakings.
The comparative figures for the year ended 31 March 2003 do not constitute
statutory accounts within the meaning of S240 of the Companies Act 1985, but
they have been derived from the audited financial statements for that year,
which have been filed with the Registrar of Companies, and on which our auditors
gave an unqualified report.
2. Turnover
Segmental analysis
6 Months to 6 Months to 12 Months to
30/09/03 30/09/02 31/03/03
Class of business
Consulting Fees 41,282 90,384 181,755
Rental Income 90,077 119,141 200,697
Investment management 43,365 36,486 78,791
--------- --------- ----------
174,724 246,011 461,243
========= ========= ==========
The segmental analysis of the operating loss and net assets by business class
has not been prepared on the basis that the costs incurred and assets utilised
across the group support all these activities rather than supporting individual
business activities.
3. Taxation
No taxation arises due to trading losses.
4. Earnings per share
The calculation of loss per ordinary share is based on the loss for the first
six months of #686,4823 and the weighted average number of ordinary shares of
0.2p each of 42,506,894634,763. The effect of the share options is determined as
being anti-dilutive.
5. Reconciliation of operating loss to net cash
outflow from operating activities
30/09/03 30/09/02 31/03/03
(unaudited) (unaudited) (audited)
# # #
Operating Loss (691,556) (692,928) (1,428,877)
Depreciation 28,763 27,238 54,911
Loss on sale of tangible Fixed - - 0
Assets
Amortisation of goodwill 50,333 61,820 100,666
(Increase) decrease in 1,271 (13,475) (38,531)
debtors
Increase in creditors (77,666) 37,099 81,448
---------- --------- ----------
Net cash outflow from (688,855) (580,246) (1,230,383)
operating activities ========== ========= ==========
6. Issue of shares
On 26th June 2003 the company issued 25,000 ordinary shares following the
exercise of #0.064 employee stock options. On the 18th September 2003 the
company issued a further 125,000 ordinary shares following the exercise of
#0.064 employee stock options.
On 10th November 2003 2,409,142 ordinary 0.2p shares were issued for a total
cash consideration of #1.012 million before expenses. On 21st November a further
1,841,858 ordinary shares were issued for a total cash consideration of #0.85m
before expenses.
The new funds will enable MMI to accelerate development within the Group and
will be applied, in particular, to progressing technologies in the Oncosense and
Viratis subsidiaries towards clinical trials, enhancing the facilities at the
Bioscience Innovation Centre in Cambridge and recruiting additional pharma
industry experienced staff.
7. This interim report is being sent to all shareholders and is available
to the public from the Company's registered office at The Bioscience Innovation
Centre, Cowley Road, Cambridge CB4 0DS.
This information is provided by RNS
The company news service from the London Stock Exchange
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