RNS Number:8390I
GeneMedix PLC
30 November 2007
FOR IMMEDIATE RELEASE 30 November 2007
GeneMedix plc
Interim Results for the 6 month period ended 30 September 2007
GeneMedix plc ("GMX" or "the Company"), the AIM listed biopharmaceutical
company, announces its unaudited interim results for the 6 month period ended 30
September 2007. The period has been one of integration and expansion following
the acquisition of the Company by Reliance Life Sciences ("RLS") in February
2007.
Highlights
* Integration with RLS proceeding well
* EPO clinical programme in EU advancing and Indian regulatory submission
imminent
* Expansion of facilities and resources in Ireland
* G-CSF development in progress
* The Company's headquarters will move to Ireland
Julian Attfield, Chief Executive Officer, GeneMedix plc commented:
"The integration of GMX with RLS has progressed well in the period and GMX is
benefitting from RLS's infrastructure and financial input. Process and clinical
development programmes for EPO and G-CSF have accelerated during the period and
we are currently working on expansion projects to increase capacity in Ireland."
ENQUIRIES:
GeneMedix plc Tel: 01638 663320
Julian Attfield, Chief Executive Officer
Deloitte Corporate Finance Tel: 020 7936 3000
Jonathan Hinton/John Ball
Bankside Consultants Tel: 020 7367 8888
Michael Padley/Susan Scott
CHIEF EXECUTIVE OFFICER'S STATEMENT
We are pleased to present the results for the 6 month period to 30 September
2007, which has been a period of integration between GMX and RLS and expansion
of the enlarged Company's infrastructure subsequent to the acquisition of the
Company by RLS in February 2007.
Business overview
The 6 month period to 30 September 2007 has been one of rapid progress for the
Company. The focus has been on investing in the facilities and personnel to
accelerate the development of both EPO and G-CSF. Clinical studies for our most
advanced project erythropoietin (EPO) progressed in both the EU and India, and
we are running development programmes to enhance the yields of our manufacturing
process to allow us to compete strongly with biosimilar EPOs which will be on
the market in advance of our Epostim product. We have also made recent advances
in our Granulocyte Colony Stimulating Factor (G-CSF) programme, with a view to
manufacturing clinical lots during next year. Process development has been
running during the period of the Company's early stage novel monomeric insulin,
for which the Company has patents filed in the US and Australia.
On the corporate front, the period has been dominated by an integration
programme, following the acquisition of 75% of the Company via the subscription
of new shares in February 2007. After a period of under-investment during a
restructuring, the Company has robust financial backing and access to
considerable management and scientific expertise within Reliance Life Sciences.
The contribution to the Company of the new Board of Directors has also given a
new impetus to the Company, and we are currently looking at a number of further
expansion projects in the EU but specifically in Ireland. We currently have
almost twice the number of employees in our Irish facility than this time last
year.
During the period we disposed of our Chinese subsidiary, Shanghai GeneMedix
Biotechnology (SGB), to a Chinese purchaser and only one final instalment, which
is due a year after the closing date of the transaction, is receivable.
Financial review
Operating losses of #1.24 million for the period are in line with our budgets
and reflect planned expenditure and cash burn. In addition we incurred #2.7
million of development costs which we started amortising at the start of the
period in line with the provisions of IAS38. A full explanation of this change
in accounting policy is given in note 1(f) of the condensed consolidated interim
financial statements below. There were no revenues in the period. We have
prepared these financial statements for the first time under International
Financial Reporting Standards (IFRS).
Cash balances were #6.3 million at the end of the period but there is a follow
on funding anticipated from RLS, through the exercise of a warrant or a
subscription of new shares, when additional funds are required later in the New
Year.
Company Head Office move to Ireland
The Company is closing its Newmarket headquarters on 15 January 2008 to
consolidate its operations in Tullamore, Ireland, now that there are no other
businesses outside Ireland to support. All enquiries should be addressed to our
Tullamore office from 2 January 2008. Details are available on our website at
www.genemedix.com. A further announcement on the consequences of the move to
Ireland on the Company's operations and its staff and executives based in
Newmarket will be made in the next few days
Julian Attfield 30 November 2007
Chief Executive Officer
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
for the six months ended 30 September 2007
Notes 6 months 6 months 16 months
to 30 Sept to 31 May to 31 Mar
2007 2006 2007
Unaudited Unaudited Unaudited*
#'000 #'000 #'000
Research and development 1e - (1,352) (3,419)
Administrative expenses (1,241) (1,186) (4,079)
______ ______ ______
Total operating expenses (1,241) (2,538) (7,498)
______ ______ ______
Operating loss 2 (1,241) (2,538) (7,498)
Interest receivable 198 13 87
Interest payable (29) (132) (384)
Other financial income - - 2,283
______ ______ ______
Loss before taxation (1,072) (2,657) (5,512)
Taxation 3 - 141 345
______ ______ ______
Loss after taxation from continuing (1,072) (2,516) (5,167)
operations
Discontinued operations
Loss from discontinued operations 8 - (147) (399)
______ ______ ______
Loss for the period (1,072) (2,663) (5,566)
______ ______ ______
Attributable to:
- equity holders of the Company (1,072) (2,627) (5,488)
- minority interest - (36) (78)
______ ______ ______
(1,072) (2,663) (5,566)
______ ______ ______
Loss per share for loss attributable
to the equity holders of the Company
- basic and diluted 6 (0.7p) (7.1p) (11.5p)
______ ______ ______
- from continuing operations - basic 6 (0.7p) (6.8p) (10.8p)
and diluted
______ ______ ______
- from discontinued operations - basic 6 - (0.3p) (0.7p)
and diluted ______ ______ ______
*Restated following the adoption of International Financial Reporting Standards.
Refer to note 9 for the reconciliation between the loss for the period ended 31
March 2007 as audited and presented under UK GAAP to the IFRS result above.
The notes form an integrated part of this condensed interim financial information.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2007 (unaudited)
- Attributable to equity holders of Company -
Group Share Share Other Retained Minority Total
capital premium reserves loss Total interest equity
#'000 #'000 #'000 #'000 #'000 #'000 #'000
Balance at 1 December 2005 3,716 27,119 1,035 (29,810) 2,060 70 2,130
Loss for the period - - - (2,627) (2,627) (36) (2,663)
Currency translation - - - (20) (20) (7) (27)
difference
Share-based payment - - - 22 22 - 22
Equity element of CULS* - - 20 - 20 - 20
______ ______ ______ ______ ______ ______ ______
Balance at 31 May 2006 3,716 27,119 1,055 (32,435) (545) 27 (518)
______ ______ ______ ______ ______ ______ ______
Loss for the period - - - (2,861) (2,861) (42) (2,903)
Currency translation - - - 37 37 12 49
difference
Share-based payment - - - 95 95 - 95
Equity element of CULS - - 8 - 8 - 8
Cumulated currency
translation difference on
disposal of subsidiary
recycled to the income
statement - - - (17) (17) - (17)
Transfer minority interest
on disposal of subsidiary - - - - - 3 3
Shares issued for cash 11,682 2,921 - - 14,603 - 14,603
consideration
Transfer to warrant - (2,921) 2,921 - - - -
reserve
Shares issued on 174 341 - - 515 - 515
conversion of CULS
Equity element of CULS
transferred to Share
Premium on conversion of - 142 (142) - - - -
CULS
Equity portion of CULS - - (191) - (191) - (191)
paid
Gain on early
extinguishment of equity
element of CULS - - (425) 425 - - -
______ ______ ______ ______ ______ ______ ______
Balance at 31 March 2007 15,572 27,602 3,226 (34,756) 11,644 - 11,644
______ ______ ______ ______ ______ ______ ______
Loss for the period - - - (1,072) (1,072) - (1,072)
Share-based payment - - - 9 9 - 9
______ ______ ______ ________ ______ ______ ______
Balance at 30 Sept 2007 15,572 27,602 3,226 (35,819) 10,581 - 10,581
______ ______ ______ ________ ______ ______ ______
* Convertible Unsecured Loan Stock
The notes form an integrated part of this condensed interim financial information.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
as at 30 September 2007
Notes 30 Sept 31 May 31 Mar
2007 2006 2007
Unaudited Unaudited Unaudited*
#'000 #'000 #'000
ASSETS
Non-current assets
Intangible assets 4 2,701 76 72
Property, plant and equipment 3,137 3,799 3,229
______ ______ ______
5,838 3,875 3,301
______ ______ ______
Current assets
Inventories 227 - 130
Other receivables 898 374 1,669
Assets classified as held for sale 8 - 2,275 -
Short-term deposits 7 125 124 125
Cash and cash equivalents 7 6,310 658 9,156
______ ______ ______
7,560 3,431 11,080
______ ______ ______
LIABILITIES
Current liabilities
Trade and other payables (1,694) (2,280) (1,637)
Borrowing 5 (150) (300) (150)
Liabilities classified as held for 8 - (530) -
sale
______ ______ ______
(1,844) (3,110) (1,787)
______ ______ _____
Net current assets 5,716 321 9,293
______ ______ ______
Total assets less current liabilities 11,554 4,196 12,594
______ ______ ______
Non-current liabilities
Other non-current liabilities - (61) -
Borrowing 5 (973) (4,653) (950)
______ ______ ______
(973) (4,714) (950)
______ ______ ______
Net assets/(liabilities) 10,581 (518) 11,644
______ ______ ______
Shareholders' equity
Share capital 15,572 3,716 15,572
Share premium 27,602 27,119 27,602
Other reserves 3,226 1,055 3,226
Retained losses (35,819) (32,435) (34,756)
______ ______ ______
Shareholders' funds 10,581 (545) 11,644
Minority interests in equity - 27 -
______ ______ ______
Total equity 10,581 (518) 11,644
______ ______ ______
*Restated following the adoption of International Financial Reporting Standards.
Refer to the notes to this condensed interim financial information, for an
explanation of the differences between the balance sheet as at 31 March 2007 as
audited and presented under UK GAAP and the IFRS result above.
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
for the six months ended 30 September 2007
Notes 30 Sept 31 May 31 Mar
2007 2006 2007
Unaudited Unaudited Audited*
#'000 #'000 #'000
Cash flows from operating
activities
Continuing operations (782) (408) (5,278)
Discontinued operations 8 - (60) 34
______ ______ ______
Net cash flows used in operating (782) (468) (5,244)
activities
______ ______ ______
Cash flows from investing
activities:
Purchase of plant and equipment (166) (36) (83)
Purchase of intangible assets 4 (2,679) - -
Purchase of short-term deposits - (2) (2)
Discontinued operations 8 778 14 696
______ ______ ______
Net cash flows (used in)/generated
from investing activities
(2,067) (24) 611
______ ______ ______
Cash flows from financing
activities:
Proceeds from issue of ordinary - - 14,760
share capital
Issue of convertible unsecured loan 5 - 107 -
stock
Repayment of convertible loan notes - - (1,221)
Repayments of borrowings - - (150)
Repayment of finance leases - (258) (782)
Discontinued operations 8 - - (104)
______ ______ ______
Cash flows generated from financing - (151) 12,503
activities
______ ______ ______
Net (decrease)/increase in cash and (2,849) (643) 7,870
cash equivalents
Cash and cash equivalents at start 9,156 1,298 1,298
of period
Exchange gain/(loss) 3 3 (12)
______ ______ ______
Cash and cash equivalents 6,310 658 9,156
______ ______ ______
*Restated following the adoption of International Financial Reporting Standards.
Refer to the notes for an explanation of the differences between the condensed
consolidated cash flow statement for the period ended 31 March 2007 as audited
and presented under UK GAAP and the IFRS result above.
The notes form an integrated part of this condensed interim financial information.
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Basis of preparation and accounting policies
a) Basis of preparation
These financial statements are the unaudited consolidated interim financial
information of GeneMedix plc, a public limited company incorporated and
domiciled in the United Kingdom, with its registered office at Rosalind Franklin
House, Fordham Road, Newmarket, Suffolk, CB8 7XN, and its subsidiaries
(together, "the Group") for the six months ended 30 September 2007.
Due to the change of financial period end from 30 November 2006 to 31 March
2007, it is not practicable to restate 2006 to the new interim period basis. As
the Group's business is not seasonal and no material change in its operations
for both periods, the Directors have decided to present the financial
information for the six months ended 31 May 2006 as the comparative.
The financial information for the six months ended 30 September 2007 was
approved by the Board of Directors on 29 November 2007 and is unaudited. The
interim financial information for the six months ended 30 September 2007 was
prepared under International Financial Reporting Standards ("IFRS") on the basis
of accounting polices as set out in the statutory accounts for the sixteen
months ended 31 March 2007 but the Group has chosen not to adopt in full IAS 34,
"Interim financial statements", in preparing its interim statements. The Group
intends to prepare the financial statements for the financial year ended 31st
March 2008 in full compliance with IFRS.
The financial information prepared in accordance with the Group's IFRS
accounting policies comprises the consolidated interim balance sheets as of 31
May 2006 and 30 September 2007 and related consolidated interim statements of
incomes, changes in equity and cash flows for the six months then ended,
together with related notes. The financial information has also been prepared in
accordance with the Listing Rules of the Alternative Investment Market. In
preparing this financial information, management has used the principal
accounting policies as set out in the Group's annual financial statements for
the sixteen months ended 31 March 2007, with the exception of the policy on the
capitalisation of development costs, as set out in 1(f) below.
The interim report does not constitute statutory financial statements within the
meaning of S240 of the Companies Act 1985. Statutory accounts for the sixteen
months ended 31 March 2007, have been filed with the Registrar of Companies.
They received an unqualified audit report which did not contain a statement
under S237(2) or S237(3) of the Companies Act 1985. The interim financial
information should be read in conjunction with the statutory accounts for the
sixteen months ended 31 March 2007.
b) Transitional arrangements
The adoption of the provisions set out in IFRS1 are outlined below:
* Business combinations: a first-time adopter may elect not to apply
IFRS 3 "Business combinations" retrospectively to business combinations that
occurred before the date of transition. The Group has chosen to make this
election and not apply IFRS 3 to the business combinations that occurred before
1 December 2005, the Group's date of transition.
* Share-based payments: the Group has applied the requirements of IFRS 2
"Share-based payments" in accordance with the transition provisions. IFRS 2 has
been applied to all grants of equity instruments after 7 November 2002 that has
not vested at 1 January 2005.
* Financial instruments: a first-time adopter may elect not to restate
the comparative information in compliance with IAS 32 "Financial instruments:
disclosure and presentation" and IAS 39 "Financial instruments: recognition and
measurement". The Group has made the election to apply this exemption.
* Foreign currency: a first-time adopter may elect not to restate the
comparative information in compliance with IAS 21 "The effect of changes in
foreign exchange rates". The Group made the election to apply this exemption and
set the cumulative translation difference to zero at the date of transition for
all subsidiaries.
* Non-current assets held for sale and discontinued operations: a
first-time adopter need not restate the comparative information in compliance
with IFRS 5 "Non-current assets held for sale and discontinued operations". The
Group elected to take advantage of this exemption, not applying full
retrospection that occurred before 1 December 2005, the Group's date of
transition.
c) Use of assumptions and estimates
The preparation of the condensed consolidated financial statements in accordance
with generally accepted accounting principles requires management to make
judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised.
Material estimates and assumptions are made in particular with regard to
impairment testing, revenue recognition criteria and the likelihood that tax
assets can be realised.
d) Finance and operating leases
Costs in respect of operating leases are charged on a straight-line basis over
the lease term. Leasing arrangements that transfer to the group substantially
all the benefits and risks of ownership of an asset are treated as if the asset
had been purchased outright. The assets are included in fixed assets and the
capital elements of the leasing commitments are shown as obligations under
finance leases. The lease rentals are treated as consisting of capital and
interest elements. The capital element is applied to reduce the outstanding
obligations and the interest element is charged against profit in proportion to
the reducing capital element outstanding. The Group ensures that such leases
include an option to purchase the asset at the end of the lease term and so
assets held under finance leases are depreciated over the useful lives of
equivalent owned assets.
When classifying a lease of land and buildings, IAS 17 "Leases" requires the
land and buildings elements to be considered separately. The lease of the land
will generally be an operating lease unless title passes to the lessee at the
end of the lease. Previously, we treated both leased land and buildings as
"Property, plant and equipment" to comply with Statement of Standard Accounting
Practice (SSAP) 21 "Accounting for leases and hire purchase contracts" under UK
GAAP.
e) Research & development costs
Expenditure on pure and applied research is charged to the income statement in
the period/year in which it is incurred. Internally generated expenditure
arising from development (or from the development phase of an internal project)
may be capitalised if it satisfies all of the criteria as specified in IAS 38
"Intangible assets" summarised as follows:
* The technical feasibility of completing the asset so that it will be
available for use or sale
* The intention to complete the asset and use or sell it
* The ability to use the asset
* The asset will generate probable future economic benefits and
demonstrate the existence of a market or the usefulness of the asset if it is to
be used internally
* The availability of adequate technical, financial and other resources
to complete the development and to use or sell it
* The ability to measure reliably the expenditure attributable to the
intangible asset.
Further to meeting these criteria, only such costs that relate solely to the
development phase of a self-initiated project are capitalised. Any costs that
are classified as part of the research phase of a self-initiated project are
expensed as incurred. If the research phase cannot be clearly distinguished from
the development phase, the respective project related costs are treated as if
they were incurred in the research phase only. The Directors believe that the
group has met the recognition criteria stated in IAS 38 from 1 April 2007 (see 1
(f) below).
f) Intangible assets
Self-initiated or in process research and development assets acquired either
through in-licensing arrangements, business combinations or separate purchases
are capitalised as intangible assets. Once available for use, such intangible
assets are amortised on a straight-line basis over the period of the expected
benefit, and are reviewed for impairment at each balance sheet date.
Expenditure on product development is capitalised as an intangible asset and
amortised over the expected useful life of the product concerned. Capitalisation
commences from the point at which technical feasibility, commercial viability
and resource availability of the product can be demonstrated and the group is
satisfied that it is probable that future economic benefit will result from the
product once completed. Capitalisation ceases when the product is ready for
launch.
IAS 38 requires that all development costs meeting specified criteria be
capitalised as intangible assets. As part of its IFRS transition project, the
Group reviewed all development projects to determine whether the criteria in IAS
38 were met.
The Directors believe that the Group met the recognition criteria stated in IAS
38 "Intangible assets" from 1 April 2007, therefore, #2.7 million of development
costs incurred during the six months ended 30 September 2007 has been
capitalised as an intangible asset.
It was the opinion of the GeneMedix Board, prior to the acquisition by Reliance
Life Sciences Private Limited in February 2007, that due to the lack of the
availability of adequate financial resources and the early stage of development
of the Group's programmes, the criteria to capitalise development costs were not
met. In February 2007 RLS acquired a majority interest in GeneMedix and has made
available sufficient funding for the Company to complete development of its main
products, and so from 1 April 2007 all development costs are capitalised. All
development costs prior to 1 April 2007 were expensed as incurred.
g) Holiday pay
Annual holiday entitlement must be taken in the same financial year. Any unused
holiday entitlement will not be carried forward to the next financial year. As
the amounts for the holiday pay accrual for the six months to 30 September 2007
and to 31 May 2006 are immaterial, the Group decided not to make adjustments for
either period.
h) Financial instruments
The Group's financial instruments comprise cash and cash equivalents, together
with debtors and creditors arising directly from operations. Cash and cash
equivalents comprise cash in hand and short term deposits which have an original
maturity of three months or less and are readily convertible into cash. Bank
deposits with maturity of more than three months are classified as short term
investments, and are carried at their historic price unless there is objective
evidence of impairment. Financial instruments are valued at fair value, subject
to review for impairment at the balance sheet date.
The Group does not enter into derivative transactions, and it is the Group's
policy not to undertake any trading in financial instruments. Cash balances are
mainly held on short and medium term deposit with quality financial
institutions, in line with the Group's policy to minimise the risk of loss. The
main risks associated with the group's financial instruments relate to interest
rate risk and foreign currency risk. The Group's policy in relation to interest
rate risk is to monitor short and medium-term interest rates and to place cash
on deposit for periods that optimise the amount of interest earned while
maintaining access to sufficient funds to meet day-to-day cash requirements. In
relation to foreign currency risk, the Group's policy is to hold the majority of
its funds in sterling, and no hedging of foreign currency cash outflows is
undertaken. These policies have been applied consistently throughout the periods
reported.
i) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and deposits with banks that
have a maturity of three months or less from the date of inception.
Deposits that have a maturity greater than three months but less than a year
from the date of inception have been disclosed separately as short-term
deposits.
j) Goodwill
Goodwill arising on consolidation represents the excess of the fair value of
consideration over the fair value of the identifiable net assets acquired.
Goodwill is recognised as an asset and reviewed for impairment at least annually
and whenever there is an indication of such impairment occurring. Impairment
losses in respect of goodwill are not reversed. As permitted by IFRS 1, goodwill
written off prior to transition to IFRS has not been reinstated as an asset and
will not be included in determining any subsequent profit or loss on disposal.
2. Segment information
The Group only has one class of business and there was no turnover in any of the
six months to 30 September 2007, six months to 31 May 2006 or the sixteen months
to 31 March 2007.
Segmental geographic information is set out below:
UK and Ireland China Group
_________________________ ________________________ ________________________
6 6 16 6 6 16 6 6 16
months months months months months months months months months
ended ended ended ended ended ended ended ended ended
30 Sept 31 May 31 Mar 30 Sept 31 May 31 Mar 30 Sept 31 May 31 Mar
2007 2006 2007 2007 2006 2007 2007 2007 2007
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Segment
operating
loss (1,241) (2,538) (7,498) - (144) (412) (1,241) (2,682) (7,910)
______ ______ ______ ______ ______ ________ ______ ______ ______
Segment net
assets/
(liabilities) 10,581 342 11,644 - (887) - 10,581 (545) 11,644
Minority - - - - 27 - - 27 -
interest
______ ______ ______ ______ ______ ________ ______ ______ ______
10,581 342 11,644 - (860) - 10,581 (518) 11,644
______ ______ ______ ______ ______ ________ ______ ______ ______
Segmental operating expenses information is set out below:
6 months ended 30 Sept 2007 6 months ended 31 May 2006 16 months ended 31 Mar 2007
_________________________________ _____________________________ ______________________________
Continuing Discontinued Total Continuing Discontinued Total Continuing Discontinued Total
operations operations operations operations operations operations
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Research &
development
costs - - - (1,352) - (1,352) (3,419) - (3,419)
Administrative
expenses
(1,241) - (1,241) (1,186) (144) (1,330) (4,079) (393)(4,472)
______ ______ ______ ______ ______ ________ ______ ______ ______
(1,241) - (1,241) (2,538) (144) (2,682) (7,498) (393)(7,891)
______ ______ ______ ______ ______ ________ ______ ______ ______
3. Research and development tax credit
The Group makes claims each year for Research and Development Tax Credits and,
as it is loss making, elects to take the cash equivalent amount. In February
2007, the Group became part of an enlarged Group that did not fit the small and
medium company criteria, which means that the Group can only make a tax relief
claim using the Research and Development credit scheme for a 'large' company to
enhance losses for the six months ended 30 September 2007.
4. Intangible assets
Group
_____________________________________________
Know-how Licence fee Development* Total
#'000 #'000 #'000 #'000
Cost
At 1 December 2005 33 3,307 - 3,340
Additions - - - -
_________ ________ ________ ________
At 31 May 2006 33 3,307 - 3,340
_________ ________ ________ ________
Additions - - - -
_________ ________ ________ ________
At 31 March 2007 33 3,307 - 3,340
_________ ________ ________ ________
Additions - - 2,679 2,679
_________ ________ ________ ________
At 30 September 2007 33 3,307 2,679 6,019
_________ ________ ________ ________
Amortisation
At 1 December 2005 7 3,254 - 3,261
Charge for the period 1 2 - 3
_________ ________ ________ ________
At 31 May 2006** 8 3,256 - 3,264
_________ ________ ________ ________
Charge for the period 1 3 - 4
_________ ________ ________ ________
At 31 March 2007 9 3,259 - 3,268
_________ ________ ________ ________
Charge for the period 2 - - 2
Impairment - 48 - 48
_________ ________ ________ ________
At 30 September 2007 11 3,307 - 3,318
_________ ________ ________ ________
Net book value
At 30 September 2007 22 - 2,679 2,701
_________ ________ ________ ________
At 31 March 2007 24 48 - 72
_________ ________ ________ ________
At 31 May 2006 25 51 - 76
_________ ________ ________ ________
At 30 November 2005 26 53 - 79
_________ ________ ________ ________
* The Group capitalised development costs in the amount of #2.7 million as of 30
September 2007 (#nil: 2006) as an internally generated intangible asset mainly
for EPO programme.
**The licence fee charge as at 31 March 2006 relates to the transfer of the
goodwill on the sale of the Group's Chinese subsidiary, SGB to 'assets for
resale' in accordance with IFRS 5.
5. Borrowings
6 months to 6 months to 16 months to
30 Sept 31 May 31 Mar
2007 2006 2007
#'000 #'000 #'000
Non-current 973 4,653 950
Current 150 300 150
______ ______ ______
1,123 4,953 1,100
______ ______ ______
Movements in borrowings is analysed as follows:
#'000 #'000
Opening balance as at 1 December 2005 4,751
Issue of convertible loan stock 107
Less convertible unsecured loan stock - equity (20)
element ______
Convertible loan stock - liability element 87
Interest expenses 115
______
Closing balance as at 31 May 2006 4,953
Issue of convertible loan stock 50
Less convertible unsecured loan stock - equity
element (8)
______
Convertible loan stock - liability 42
element
Repayment of convertible loan note - (1,030)
liability element
Gain on early extinguishment of (2,283)
liability element of convertible
loan note
Repayment of bridging loans (150)
Share issued on conversion of convertible loan notes (515)
- liability element
Interest expenses transferred to Other Payables (13)
Interest expenses 96
______
Closing balance as at 31 March 2007 1,100
Interest expenses 13
______
Closing balance as at 30 September 2007 1,113
______
There was no convertible loan note issued or repaid during the six months to 30
September 2007.
6. Loss per share
6 months to 6 months to 16 months to
30 Sept 31 May 31 Mar
2007 2006 2007
#'000 #'000 #'000
Loss attributable to the equity
holders of the Company:
Loss from continuing operations for 1,072 2,516 5,167
the period
Loss from discontinued operations for - 111 321
the period
_______ _______ _______
Loss for the period 1,072 2,627 5,488
_______ _______ _______
Number Number Number
thousands thousands thousands
Weighted average number of shares 155,718 37,157 47,891
_______ _______ _______
Loss per share from continuing operations - 0.7p 6.8p 10.8p
basic and diluted
Loss per share from discontinued operations - - 0.3p 0.7p
basic and diluted
_______ _______ ________
Loss per share - basic and diluted 0.7p 7.1p 11.5p
_______ _______ ________
The Company has a number of warrants and options outstanding which would
increase the weighted average number of shares but the effects of these have not
been shown as they would reduce the loss per share.
7. Cash and cash equivalents
In the period to 31 March 2006 #516,301 of bank deposits included in "Cash and
cash equivalents" were secured against finance leases and previously shown on
the balance sheet separately as restricted cash. These deposits could only be
drawn down in line with the repayments of the finance leases. Other bank
deposits with maturity dates of less than three months are treated as cash and
cash equivalents in accordance with IAS 7 "Cash flow statements".
"Short-term deposits" represent a single deposit with a maturity date of more
than three months. This deposit is a rent deposit for the lease of the Group's
Head Office building in Newmarket.
8. Discontinued operations and disposal group
Discontinued operations
In August 2005, the Group announced its intention to sell its Chinese
subsidiary, SGB. The Group initiated an active programme to locate a buyer in
early 2006 and completed the sale in December 2006; its results are presented in
this condensed interim financial information as a discontinued operation.
Financial information relating to SGB, for the six months to 31 May 2006 and for
the sixteen months to 31 March 2007 is set out below. The income statement and
cash flow statement distinguish discontinued operations from continuing
operations.
6 months to 6 months to 16 months to
30 Sept 31 May 31 Mar
2007 2006 2007
#'000 #'000 #'000
Administrative expenses/operating loss - 144 395
Interest receivable - - -
Interest payable or similar charge - 3 4
Loss before taxation - 147 399
Taxation - - -
__________ __________ __________
Loss from discontinued operations - 147 399
__________ __________ __________
Loss attributable to:
- equity holders of the Company - 111 321
- minority interest - 36 78
__________ __________ __________
- 147 399
__________ __________ __________
Loss per share - basic and diluted - 0.3p 0.7p
__________ __________ __________
Operating cash flows for discontinued - (60) 34
operations
Investing cash flows for discontinued - 14 25
operations
Financing cash flows for discontinued - - (104)
operations
__________ __________ __________
- (46) (45)
__________ __________ __________
Consideration received or receivable:
Cash received 778 - 671
Cash disposed of - - -
__________ __________ __________
Total net disposal consideration 778 - 671
__________ __________ __________
8. Discontinued operations and disposal group (continued)
Disposal group
The assets and liabilities related to SGB had been presented as held for sale
following shareholder approval of the decision to dispose of this operation. The
completion date for the transaction was in December 2006. SGB assets and
liabilities are a disposal group as at 31 May 2006.
SGB assets and liabilities were remeasured according to IFRS principles at the
date of held-for-sale classification. An analysis of the SGB disposal group is
as follows:
31 May
2006
#'000
Non-current assets classified as held
for sale:
Property, plant and equipment 1,358
Intangible assets 763
Other non-current assets 111
Inventory 14
Other receivables 19
Cash and cash equivalents 10
__________
Total assets of the disposal group 2,275
__________
Liabilities directly associated with non-current assets classified as
held for sales:
Trade and other payables (530)
__________
Total liabilities of the disposal group (530)
__________
Total net assets of the disposal group 1,745
__________
9. Reconciliation of net assets and loss under UK GAAP and IFRS
GeneMedix plc reported under UK GAAP in its previously published financial
statements for the sixteen months ended 31 March 2007. The analysis below shows
the reconciliation of net assets and loss as reported under UK GAAP as at 31
March 2007 and the revised net assets and loss under IFRS as reported in these
financial statements. In addition, there is a reconciliation of equity under UK
GAAP to IFRS at the transition date for the group, being 1 December 2005.
6 months to 6 months to 16 months to
30 Sept 31 May 31 Mar
2007 2006 2007
#'000 #'000 #'000
Group
Reconciliation of loss for the period
Loss for the period reported under UK (1,072) (2,658) (5,505)
GAAP
Adjustments:
Share-based payment - (22) -
Goodwill amortisation - 53 106
Impairment of goodwill - - (106)
Cumulative currency translation
difference on disposal of subsidiary - - 17
__________ __________ __________
Loss for the period reported under IFRS (1,072) (2,627) (5,488)
__________ __________ __________
6 months to 6 months to 16 months to
30 Sept 31 May 31 Mar
2007 2006 2007
#'000 #'000 #'000
Group
Reconciliation of shareholders' equity
Shareholders' equity as reported under 10,581 (1,653) 11,644
UK GAAP
Adjustments:
Reversal of goodwill amortisation - 53 106
Cumulative currency translation
difference on disposal of subsidiary
recycled to the income statement - - 17
Impairment on goodwill - - (106)
Cumulative currency translation
difference on foreign subsidiary
transferred from the reserves - - (17)
Share-based payment from the loss for - (22) -
the period
Share-based payment recognised in - 22 -
reserves
Equity element of CULS - 1,055 -
__________ __________ __________
10,581 (545) 11,644
Minority interest in equity - 27 -
__________ __________ __________
Total equity reported under IFRS 10,581 (518) 11,644
__________ __________ __________
Other than in the presentation of the condensed consolidated cash flow statement
there were no changes to the financial information as a result of the transition
to IFRS.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PUGPPGUPMGBB
Reliance Genemedix (LSE:GMX)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Reliance Genemedix (LSE:GMX)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
