MDY Healthcare - Final Results
RNS Number:2142K
MDY Healthcare PLC
19 December 2007
MDY Healthcare plc
Preliminary results
19 December 2007: MDY Healthcare plc ('MDY Healthcare' or the 'Company'), the
strategic investor in healthcare companies, today announces its preliminary
results for the year ended 30 September 2007.
These are MDY Healthcare's first full set of results since becoming a strategic
investor focused on the healthcare sector. During the period, MDY Healthcare
successfully developed and validated its innovative investment business model.
Key highlights are as follows:
Highlights in strategic portfolio
* Sale of Cozart plc to Concateno plc represented highly profitable cash
exit from first investment
* AOI Medical successfully completed IPO and subsequently submitted 510k to
US FDA and initiated clinical study
* Medivance completed $23.0 million financing in the US and the business
continues to exceed expectations
* Minster Pharma initiated 500 patient PIIb trial for migraine prevention
following investment by MDY Healthcare
* Lombard Medical completed successful 21-patient FDA review of its AorfixTM
endovascular stent graft following investment by MDY Healthcare
* Joint venture established with William Ransom to sell natural healthcare
products direct to consumer with commercial launch on track for 2008
Financial highlights
* Cash exit from Cozart investment represented 87% gain and £1.3 million
cash returned to MDY Healthcare
* Total investments valued at approximately £9.4 million, cash deposits of
approximately £5.1 million and a cash receivable of £1.3 million
* Following AOI Medical's successful IPO, initial investment re-valued by
£0.6 million on MDY Healthcare's balance sheet
* Net asset value per share as at 30 September 2007 of £1.06 (2006: £1.20)
* Loss after tax for continuing operations of £1.9 million (2006: £1.4
million), which includes £877,000 of exchange rate loss due to dollar
weakness
Charles Spicer, CEO, said:
'During our first full year as a strategic investor in healthcare companies we
have made solid progress despite very challenging global market conditions. We
remain encouraged by the quality of the assets in our core portfolio and see the
substantial profit realised by Cozart as a validation of our business model.
Although we continue to operate in uncertain and difficult markets, we are well
placed to make further strategic investments and structure innovative deals to
realise future value for shareholders.'
For further information, please contact:
MDY Healthcare plc
Charles Spicer, CEO
+44 (0) 207 647 1800
charles.spicer@mdyhealthcare.com
Financial Dynamics
Ben Atwell, Susan Quigley
+44 (0) 207 831 3113
ben.atwell@fd.com, susan.quigley@fd.com
Brewin Dolphin Limited (Nomad)
Matt Davis
+44 (0) 845 270 8600
Notes for editors:
About MDY Healthcare plc
MDY Healthcare plc is a sector specialised strategic investing company quoted on
AIM (ticker symbol: MDY). The company seeks to achieve superior returns for
shareholders by investing globally in companies, both public and private, across
the healthcare sector. The directors, executives and senior advisors have
significant operational and investment experience in the sector and therefore
the ability to identify and review a wide range of potential investments.
Further information can be found on the website www.mdyhealthcare.com.
MDY Healthcare plc intends to publish its annual report and accounts for the
year ended 30 September 2007 by March 2008. When available, shareholders will
be able to download the report and accounts from the website
www.mdyhealthcare.com.
Chairman and Chief Executive's review
Overview
The year ended 30 September 2007 was MDY Healthcare's first full year as a
strategic investor focused on the healthcare sector, following the sale of its
operating businesses in the previous financial year.
During the year we have built a promising portfolio of investments and achieved
a highly profitable cash exit from our first public investment, as well as the
IPO of our first private investment. During the period we invested
approximately £10.1 million in five new strategic investments as well as follow
on investments in Cozart and AOI (in which we originally invested last financial
year) and in our trading portfolio. In total, we had investments valued, as at
30 September 2007 at £9.4 million (2006: £1.3 million) and cash reserves of £5.1
million (2006: £17.2 million).
We were particularly pleased to achieve our first exit from a strategic
investment when Concateno plc announced its cash offer for Cozart plc in
September 2007. The offer valued Cozart's equity at an 87% premium to our cost
of investment, resulting in a profit of £0.6 million and returned approximately
£1.3 million to our cash reserves in October 2007. This represents a
significant profit over a relatively short period thereby demonstrating the
potential gains available despite the challenging markets.
Investment strategy
During the course of the year, we have increased our focus on those transactions
where we could leverage the team's specialised sector and transactional
expertise to add value to investee companies as a strategic shareholder. For
example, we helped Cozart to implement its buy-and-build growth strategy over
the last year culminating in the sale of the business for a substantial premium.
Similarly, both of our US investments (AOI Medical and Medivance) have
benefited from having a sector-focused strategic investor based in Europe to
help them develop their financing strategies. The joint venture with William
Ransom & Son plc is an example where we developed an innovative deal structure
to support Ransom's strategic business objectives, while preserving significant
investment upside for our shareholders.
We intend to continue to focus increasingly on such transactions in both the
private and public arena, working with other providers of capital where
required.
Strategic portfolio review
Following the successful sale of our first strategic investment (Cozart), six
core strategic investments remain in the portfolio. Four of these are companies
quoted on AIM, one is a private US medtech business and one is an investment in
a joint venture with another AIM-quoted company. Each of these strategic
investments has made good progress since we invested.
As at 30 September 2007, three of our investments (AOI, Medivance and Lombard)
had increased in value, while two (Allergy Therapeutics and Minster Pharma) were
showing losses. AOI Medical successfully floated on AIM in June - one of the
few such transactions achieved in the sector. Medivance successfully raised
significant further equity finance and our investment in Medivance is showing an
increase in book value of approximately 10%, based on the valuation achieved at
the recent financing. Lombard has recently announced the successful completion
of the 21-patient review on its lead product by the US Food and Drug
Administration (the 'FDA'). Allergy Therapeutics' share price has suffered
since the summer following the unexpected clinical hold imposed by the FDA on
its key clinical trial following a single adverse event. Minster's share price
has suffered in line with the depressed share prices across drug development
companies.
Since our financial year end, 30 September 2007, stock market conditions have
continued to be extremely challenging with the share prices for each of our
quoted strategic investments falling further.
AOI Medical Inc.
Based in Florida, USA, AOI Medical is developing, and intends to commercialise,
innovative orthopaedic medical devices for the spine and trauma markets. In
September 2006, we subscribed $1.5 million (£0.8 million) for ordinary shares in
a private placing. In June 2007, AOI Medical completed its IPO on AIM and we
invested a further £1 million, raising our stake in the business to
approximately 8.6% of the issued share capital which was valued at approximately
£2.4 million as at 30 September 2007.
In July 2007, AOI Medical announced the 510k submission for AscendXTM, (Fracture
Reduction System) to the FDA. AOI recently announced that the FDA has asked AOI
to conduct a clinical study of its AscendXTM technology and that the product is
on track for launch in H2 2008.
Medivance, Inc
Based in Colorado, USA, Medivance is a leading company in the emerging field of
therapeutic temperature management. Medivance's non-invasive technology, Arctic
Sun(R) is patented and FDA approved to rapidly cool patients ('therapeutic
hypothermia') and precisely control their temperatures as a therapeutic tool.
In July 2007 we subscribed a further $2.5 million (£1.2 million) in newly issued
ordinary shares in Medivance following our subscription for $2.5 million (£1.3
million) in convertible loan notes announced in December 2006. The July
financing of $23.0 million was led by Quellos Group, LLC, a US investment
management company. As a consequence of the more recent financing, conversion
of our original convertible loan notes into ordinary shares was triggered at a
discount of 15% to the price paid by new equity investors at that financing.
Consequently we now own approximately 9.8% of the fully-diluted equity of
Medivance which was valued at £2.7 million as at 30 September 2007.
Medivance has continued to roll out the Arctic Sun(R) product internationally.
In the year to date, Medivance has continued to exceed its annual plan
expectations on several fronts including revenues, gross margin and expenses.
The Arctic Sun(R) product is now available in Europe and Asia as well as in the
US. In the UK, units have been installed in a number of leading hospitals.
Minster Pharmaceuticals plc
Minster is a drug development company that acquired from GlaxoSmithKline the
worldwide development rights of two compounds, tonabersat and sabcomeline, which
have already benefited from substantial investment by GSK. Minster's lead
product, tonabersat, belongs to an exciting new class of drugs called 'gap
junction blockers', and is being developed as a prophylactic treatment for
migraine.
In March 2007, we invested in Minster's fundraising, which raised a total of
£17.0 million. Minster's share price has performed poorly during the year
reflecting the difficult markets for small cap companies generally and drug
development businesses in particular. Following the original investment we have
acquired further shares at significantly lower prices in the market and now hold
just over 2% of Minster's issued share capital valued at approximately £0.6
million as at 30 September 2007.
In October 2007, Minster announced that it had started enrolment for their
500-patient phase IIb trial of tonaberstat in the US where they see migraine
prevention as one of the fastest growing segments of the pharmaceutical market.
The clinical results of this trial are scheduled to be published in late 2008.
Allergy Therapeutics PLC
Allergy Therapeutics is a speciality pharmaceutical company focused upon the
treatment and prevention of allergy. It has an existing European sales base, an
MHRA-approved manufacturing capability and a number of novel vaccines which have
already undergone initial clinical evaluation and once registered, could
potentially revolutionise the treatment of allergy.
In March 2007, we acquired shares in Allergy Therapeutics and have subsequently
bought further shares in the market. MDY Healthcare now holds just over 0.7% of
Allergy Therapeutics' issued share capital which was valued at approximately
£0.4 million as at 30 September 2007.
Allergy Therapeutics has announced conclusive results of their oral allergy
vaccine study and the commencement of dosing in their Pollinex(R) phase III
ragweed trial. They also announced that they have entered into a Euro40 million
debt facility with RBS. In July 2007, Allergy Therapeutics announced that its
Pollinex Quattro clinical studies had been placed on clinical hold by the FDA
whilst the agency fully assesses the report of a rare adverse event classified
by the physician involved as 'possibly related' to the study drug. Allergy
Therapeutics continues to grow its core business but the future direction of the
company is dependent on the timing of the decision on the clinical hold. They
intend to make further submissions and will continue to work with the FDA to
have the clinical hold removed.
Lombard Medical Technologies PLC
Lombard Medical is a specialist cardiovascular device and polymer coatings
company. Its flagship product, the AorfixTM endovascular stent graft for
Abdominal Aortic Aneurysm (AAA), is CE Mark approved in the EU. With no device
currently approved for the treatment of AAA's with neck angulations greater than
60 degrees, AorfixTM has a potentially unique product profile targeting an unmet
clinical need.
In August 2007 we announced that we had acquired shares in Lombard Medical
following participation in both the June 2007 equity fundraising and
subsequently, acquisition of shares at significantly lower levels in the market.
We now hold just over 3% of Lombard's issued share capital valued at
approximately £0.5 million as at 30 September 2007.
In November 2007, Lombard Medical announced that it had successfully passed an
FDA review of the first 21 patients in the pivotal US clinical trial for Aorfix
TM.
Joint Venture with William Ransom & Son plc
Ransom is the UK's oldest independent pharmaceutical company and one of the UK's
leading natural healthcare companies. It is the market-leading supplier of
glucosamine supplements and one of Europe's leading suppliers of retailed aloe
vera products.
In August 2007 Ransom and MDY Healthcare announced the establishment of a
multi-channel retail joint venture selling natural healthcare products direct to
consumers via the internet, mail order and telesales. The aim of the joint
venture is to capitalise on the rapid growth of e-commerce in the UK. The
products will be primarily sourced and/or manufactured by Ransom, which will
also provide management support and fulfilment from its newly established
distribution centre in Bradford, UK. MDY Healthcare will provide up to £3
million in loan capital to finance the joint venture which is expected to launch
commercial activities in 2008.
The newly created joint venture company will initially be majority-owned by MDY
Healthcare and the board of the joint venture includes representatives of both
Ransom and MDY Healthcare. Ransom has the option to acquire 100% ownership of
the joint venture company in accordance with an agreed timetable and valuation
process. Given the initial stage of the project there is currently no material
value to MDY Healthcare's equity interest included on the balance sheet.
We are now in the detailed planning and setup stage for the joint venture and
have engaged specialised consultants to assist in the development of the retail
offering, design of the customer interface and develop the fulfillment and
logistical capabilities ahead of commercial launch in 2008.
Trading portfolio
Separately from the strategic investments, we have a portfolio of investments in
healthcare companies traded on the Main Market of the London Stock Exchange or
quoted on AIM, which were valued at approximately £2.9 million as at 30
September 2007. The disruption in global equity markets since the summer has
hit smaller capitalisation companies relatively hard and particularly the
healthcare sector. This trend has continued since the financial year end.
Whilst we realised some cash gains in early summer from better performing stocks
(including Optos, Corin and Renovo), the trading portfolio was showing a net
loss at the period end.
Financial review
At 30 September 2007, MDY Healthcare's total investments were valued at £9.4
million (2006: £1.3 million) and we had cash and cash equivalents of £5.1
million (2006: £17.2 million), most of which are held in US dollars following
the receipt of US dollar cash proceeds from the disposal of our operating
business in 2006. In addition, we had a £1.3 million trade receivable relating
to the sale of our Cozart investment which was paid in October 2007. Net asset
value per share as at 30 September 2007 was £1.06 (2006: £1.20).
In the year ended 30 September 2007, our loss after tax for continuing
operations was £1.9 million (2006: £1.4 million). Of this, £877,000 was an
exchange rate loss related mainly to cash balances held in US dollars resulting
from the significant weakening of the dollar over the period. Approximately
£421,000 of our total operating expenses related to costs resulting from matters
relating to the sale and/or closure of our previous operating businesses.
Revenue for the period was £28,000 and interest income was £628,000. During the
year the realised gains on investments were £731,000 which includes our gain on
the sale of Cozart and cash gains within our trading portfolio. A fair value
loss on investments of £907,000 reflects the mark-to-market revaluation of our
listed and quoted investments following the difficult stock market conditions
during the summer discussed above.
Our initial private investment of $1.5 million in AOI Medical was made in August
2006 (i.e. in the previous financial year) when MDY Healthcare had an operating
business which we sold during that year. Consequently the initial AOI Medical
investment was categorised as an 'available for sale financial asset' in
accordance with the accounting policy that applied in the year ended 30
September 2006. Immediately following AOI Medical's successful IPO in June
2007, this initial investment was revalued upwards by £626,000. However under
IFRS this revaluation has to be booked directly in equity and does not appear on
the consolidated income statement.
Following the conclusion of MDY Healthcare's change in strategic direction and
operations, the Company now operates as a strategic investor in financial
investments. Following this change, we now classify equity investments as
financial assets at fair value through profit or loss. Realised and unrealised
gains and losses on financial assets at fair value through profit or loss are
included in the income statement in the period in which they arise. Therefore,
with the exception of the initial investment in AOI Medical, for the year ended
30 September 2007 realised and unrealised gains and losses on all other of our
investments at fair value through profit or loss are included in the income
statement.
Losses per share for the period were 16.02p as against 12.80p for the
corresponding period in 2006.
Share capital reorganisation
On 29 March 2007, we posted a circular to shareholders setting out various
resolutions which were subsequently passed at our Annual General Meeting held on
4 May 2007. The resolutions included, inter alia, a share capital
reorganisation, leading to the consolidation of our shares equating to 1 new
ordinary share for every 50 existing shares held. The 13,984,223 new ordinary
shares of 1p each were admitted to trading on AIM on 8 May 2007 under ISIN code
GB00B1VJNC59. The per share calculations included in the financial review above
are all based on the number of new ordinary shares outstanding (i.e. on a
post-consolidation basis). As at 30 September 2007 the Company's capital
consisted of 14,623,111 ordinary shares. (The Company's share capital also
consists of 13,984,223 deferred shares, which were created as part of the share
capital reorganisation. The rights attaching to the deferred shares, which are
not admitted to trading, are minimal thereby rendering them effectively
valueless).
Conclusion and outlook
During our first full year as a strategic investor in healthcare companies we
have made solid progress despite very challenging market conditions. We remain
encouraged by the quality of the assets in our core portfolio and see the
substantial profit realised by Cozart as a validation of our business model.
Although we continue to operate in uncertain and difficult markets, we are well
placed to make further strategic investments and structure innovative deals to
realise future value for shareholders.
MDY HEALTHCARE PLC
CONSOLIDATED INCOME STATEMENT
for the year ended 30 September 2007
2007 2007 2007
Continuing Discontinued Total
Operations Operations
Notes £'000 £'000 £'000
Revenue 28 - 28
Cost of sales - - -
_____ _____ _____
Gross profit 28 - 28
Selling and distribution costs -
Administrative expenses (1,628) (421) (2,049)
Research and development expenditure in the
year - - -
_____ _____ _____
Results from operating activities (1,600) (421) (2,021)
Net change in fair value of financial assets
at fair value through profit or loss 2 (543) - (543)
Net gains on disposal of available for sale
financial assets transferred from equity 367 - 367
Foreign exchange loss (877) - (877)
Financing income 628 - 628
Financing costs - - -
_____ _____ _____
Net finance income/(expense) (425) - (425)
_____ _____ _____
Loss before tax (2,025) (421) (2,446)
Income tax credit (expense) 175 - 175
_____ _____ _____
Loss after tax but before gain on
discontinued operations (1,850) (421) (2,271)
Gain on sale of discontinued operations, net
of tax - - -
_____ _____ _____
Loss for the period (1,850) (421) (2,271)
_____ _____ _____
Attributable to:
Equity holders of the parent (2,271)
_____
Loss for the period (2,271)
_____
Basic and diluted loss per share (p) (13.05) (2.97) (16.02)
_____
(continued from table above)
2006 2006 2006
Continuing Discontinued Total
Operations Operations
Notes £'000 £'000 £'000
Revenue 41 18,720 18,761
Cost of sales - (13,196) (13,196)
_____ _____ _____
Gross profit 41 5,524 5,565
Selling and distribution costs - (2,092) (2,092)
Administrative expenses (1,521) (4,225) (5,746)
Research and development expenditure in the
year - (870) (870)
_____ _____ _____
Results from operating activities (1,480) (1,663) (3,143)
Net change in fair value of financial assets
at fair value through profit or loss 2 - - -
Net gains on disposal of available for sale - - -
financial assets transferred from equity
Foreign exchange loss - - -
Financing income 268 14 282
Financing costs (175) (395) (570)
_____ _____ _____
Net finance income/(expense) 93 (381) (288)
_____ _____ _____
Loss before tax (1,387) (2,044) (3,431)
Income tax credit (expense) - (92) (92)
_____ _____ _____
Loss after tax but before gain on (1,387) (2,136) (3,523)
discontinued operations
Gain on sale of discontinued operations, net
of tax - 2,121 2,121
_____ _____ _____
Loss for the period (1,387) (15) (1,402)
_____ _____
Attributable to:
Equity holders of the parent (1,402)
_____
Loss for the period (1,402)
_____
Basic and diluted loss per share (p) (12.66) (0.14) (12.80)
_____
MDY HEALTHCARE PLC
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the year ended 30 September 2007
2007 2006
Note Total Total
£'000 £'000
Gain / (loss) on foreign currency translation - 126
Defined benefit plan actuarial gains/(losses) - 156
Net change in fair value of available for sale
financial assets 2 896 97
Deferred tax liability arising on net change in
fair value of available-for sale financial assets (146) (29)
Net change in fair value of available for sale
financial assets transferred to profit and loss (367) -
_____ _____
Income and expenses recognised directly in equity
in the year 383 350
Loss for the financial year (2,271) (1,402)
_____ _____
Total recognised income and expense for the year 4 (1,888) (1,052)
Attributable to
- Equity holders of the Company (1,888) (1,052)
_____ _____
Total recognised income and expenses for the period (1,888) (1,052)
_____ _____
MDY HEALTHCARE PLC
CONSOLIDATED BALANCE SHEET
as at 30 September 2007
2007 2006
Notes £'000 £'000
Assets
Non-current assets
Property, plant and equipment 2 105 68
Investments 2 6,454 1,274
_____ _____
Total non-current assets 6,559 1,342
_____ _____
Current assets
Investments 2,904 -
Trade and other receivables 1,470 545
Cash and cash equivalents 5,090 17,159
_____ _____
Total current assets 9,464 17,704
_____ _____
Total assets 16,023 19,046
_____ _____
Liabilities
Non-current liabilities
Deferred tax liabilities - 29
_____ _____
Total non-current liabilities - 29
Current liabilities
Trade and other payables 493 2,174
_____ _____
Total current liabilities 493 2,174
Total liabilities 493 2,203
_____ _____
Net assets 15,530 16,843
_____ _____
Equity
Issued capital 7,020 7,013
Share premium account 101,419 100,851
Other reserves 22,993 22,993
Shares issuable - 63
Retained earnings (115,902) (114,077)
_____ _____
Total equity 4 15,530 16,843
_____ _____
MDY HEALTHCARE PLC
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 September 2007
2007 2006
Cash flows from operating activities £'000 £'000
Loss for the year (2,446) (3,523)
Adjustments for:
Depreciation and amortisation 17 509
Income tax expense - 92
Net change in fair value of financial assets at fair value through profit
or loss 907 -
Net gains on disposal of financial assets at fair value through profit or loss (364) -
Net gains on disposal of available for sale financial assets transferred
from equity (367) -
Foreign exchange losses on cash held 910 -
Impairment of property, plant and equipment - 1,001
Impairment of intangibles - 219
Share based payments - (9)
Interest receivable (628) (282)
Financing costs - 570
_____ _____
Operating loss before changes in working capital and provisions (1,971) (1,423)
Increase in inventory - (28)
Increase in trade and other receivables (925) (70)
(Decrease)/increase in trade and other payables (1,681) 1,472
Increase in pension - 5
_____ _____
Cash used by operations (4,577) (44)
Current tax paid - -
Interest paid - (567)
_____ _____
Net cash outflow from operating activities (4,577) (611)
_____ _____
Cash flows from investing activities
Interest received 628 282
Purchase of financial asset at fair value through the profit and loss (10,150) (1,177)
Purchase of intangibles - (6)
Purchase of property, plant and equipment (54) (324)
Proceeds from the sale of discontinued activities (net of costs of sale
and cash held by discontinued activities) - 21,808
Proceeds from the sale of financial assets at fair value through the
profit and loss 1,666 -
Proceeds from the sale of available for sale financial assets 753 -
_____ _____
Net cash (outflow)/inflow from investing activities (7,157) 20,583
_____ _____
Cash flows from financing activities
Proceeds from issue of share capital 575 4,825
Bank loan repayment - (6,237)
_____ _____
Net cash inflow/(outflow) from financing activities 575 (1,412)
_____ _____
(Decrease)/increase in cash and cash equivalents (11,159) 18,560
Cash and cash equivalents at 1 October 17,159 (1,401)
Effect of exchange rate fluctuations on cash held (910) -
_____ _____
Cash and cash equivalents at end of year 5,090 17,159
_____ _____
Reporting Entity
MDY Healthcare plc (the 'Company') is a Public Limited Company (traded on AIM)
incorporated in and domiciled in the United Kingdom. The address of the
Company's registered office is 23 Bridge Street, Ellon, Aberdeenshire, Scotland.
The consolidated financial statements of the Company as at and for the year
ended 30 September 2007 comprise the Company and its subsidiaries (together
referred to as the 'Group'). The Group is a healthcare sector specialised
investment company.
1. Basis of preparation
Statement of compliance
The Group and parent company financial statements have been prepared and
approved by the directors in accordance with International Financial Reporting
Standards ('IFRSs') as adopted by the EU. On publishing the parent company
financial statements here together with the Group financial statements, the
Company is taking advantage of the exemption in section 230 of the Companies Act
1985 not to present its individual income statement and related notes that form
a part of these approved financial statements.
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in these consolidated financial
statements.
The financial statements were approved by the Board of Directors on 18 December
2007.
The financial statements have been prepared on the going concern basis.
2. Investments
2007 2006
£'000 £'000
Available for sale financial
assets (i) 1,417 1,274
Financial assets designated at fair
value through profit or loss (ii) 5,037 -
Financial assets held for trading
at fair value through profit or
loss (iii) 2,904
____ ____
9,358 1,274
____ ____
(i) Available for sale financial assets
2007 2006
£'000 £'000
At 1 October 2006 1,274 -
Additions at fair value:
- Cozart plc (1,350,000 shares) - 386
- AOI Medical Inc. (432,865 shares) - 791
Revaluation 896 97
Disposals (753) -
_____ _____
At 30 September 2007 1,417 1,274
_____ _____
In line with the Group's accounting policy, the gain on revaluation of available
for sale financial assets is recognised in the Consolidated Statement of
Recognised Income and Expense until that financial asset is disposed of.
(ii) Financial assets designated at fair value through profit or loss
2007 2006
£'000 £'000
At 1 October 2006 - -
Additions at cost: 5,696 -
Revaluation 75 -
Disposals (734) -
_____ _____
At 30 September 2007 5,037 -
_____ _____
(iii) Financial assets held for trading at fair value through profit or loss
2007 2006
£'000 £'000
At 1 October 2006 - -
Additions at cost: 4,454
Revaluation (618) -
Disposals (932) -
_____ _____
At 30 September 2007 2,904 -
_____ _____
The total net change in fair value of financial assets at fair value through
profit and loss during the year was £543,000, comprising a gain of £75,000
related to financial assets designated at fair value and £618,000 revaluation
loss in relation to financial assets held for trading at fair value.
Since the financial year end, 30 September 2007, stock market conditions have
continued to be extremely challenging with the share prices of the portfolio of
quoted strategic investments falling further. Current fair values of
investments will be disclosed in the Annual Report of the Group due to be
published by March 2008.
3. Loss per Share
2007 2006
_____ _____
Basic
Net loss for the financial period (£'000) (2,271) (1,402)
Weighted average number of shares outstanding ('000) 14,179,049 10,951,260
Basic loss per share (16.02)p (12.80)p
_____ _____
The basic net loss per ordinary share is calculated using a numerator of the net
loss for the financial year and a denominator of the weighted average number of
ordinary shares in issue for the financial year. The diluted net loss per
ordinary share is calculated using a numerator of the net loss for the financial
year and a denominator of the weighted average number of ordinary shares and
adjusting for the effect of all potentially dilutive shares, including share
options and warrants, assuming they are converted. There is no difference for
2007 and 2006 between the basic net loss per share and the diluted net loss per
share as ordinary share equivalents from share options have been excluded from
the computation as their effects are anti-dilutive. Earnings per share for 2006
have been adjusted to reflect the share consolidation referred to in the
Chairman and Chief Executive's Review above.
As at 18 December 2007, the capital of the company consisted of 14,623,111
ordinary shares with a nominal value of 1p each.
Weighted average number of ordinary shares
In thousands of shares
2007 2006
_____ _____
Issued ordinary shares at 1 October 13,984,223 10,735,100
_____ _____
Effect of shares issued in the
financial period 194,826 216,160
_____ _____
Weighted average number of
ordinary shares at 30 September 14,179,049 10,951,260
_____ _____
4. Reconciliation of movements in equity
2007 2006
£'000 £'000
_____ _____
Total recognised income and expense for the period (1,888) (1,121)
Share based payments - (9)
Issued and issuable share capital including premium, less expenses 575 4,978
_____ _____
Net increase/(decrease) in equity (1,313) 3,848
Opening equity 16,843 12,995
_____ _____
Closing equity 15,530 16,843
_____ _____
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGMMZNRFGNZM
