SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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PROTHERICS PLC
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Date: 20 November 2007
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By:
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/s/ Rolf Soderstrom
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Rolf Soderstrom
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Finance Director
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PROTHERICS ANNOUNCES INTERIM
RESULTS
FOR SIX MONTHS ENDED 30 SEPTEMBER
2007
Strong progress in broad
late-stage pipeline
Sharp rise in revenues, gross
profits and cash position
London, UK, Brentwood, TN, 20
November 2007
- Protherics
PLC (“Protherics” or the “Company”), the biopharmaceutical company
focused on critical care and cancer, today announces its unaudited interim results for the
six months ended 30 September 2007.
Operational Highlights
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·
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CroFab™ and
DigiFab™: stronger than expected market sales helped drive 31% revenue
growth over the corresponding six month period in 2006
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-
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AstraZeneca expected to
start its expanded CytoFab™ phase 2 programme in Q4 2007
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excellent potency data from
large-scale CytoFab™ manufacturing process allows deferral of major
manufacturing investment until start of phase 3 study
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-
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milestone payments schedule
supports Protherics’ manufacturing programme
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·
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Digoxin Immune Fab:
recruitment in phase 2b “DEEP” study in severe pre-eclampsia
completed ahead of schedule and on track to report in Q2 2008 (see separate
release)
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revenues significantly
ahead of expectations due to cost recovery programme in the US
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work on track to support
resubmission of marketing application in the US and meeting requested with
EMEA
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phase 2b study initiated in
oesophageal cancer following encouraging phase 2a results
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independent safety review
ongoing following treatment of the first cohort of three patients in phase 1/2
primary brain cancer (glioblastoma multiforme) study
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·
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Prolarix™: maximum
tolerated dose determined and phase 2 to start in the first half of
2008
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·
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Acadra™
(acadesine)
: proof of concept phase
1/2 study initiated in the EU
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CoVaccine HT was
out-licensed to Nobilon B.V.
(
Organon BioSciences /
Schering
Plough) for use in flu vaccines and ReGel™ was out-licensed to Myungmoon
Pharm. Co. Ltd., a South Korean pharmaceutical company, for use in arthritis
indications
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Financial Highlights
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·
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Revenues increased by 31%
to £14.8m (2006: £11.3m) with significant growth in CroFab™
and Voraxaze™
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Gross profit up 32% to
£8.2m (2006: £6.2m) delivering gross margins of 55.4% (2006: 55.2%)
on improved volumes
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·
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R&D increased to
£8.6m (2006: £7.1m) with investment in CytoFab™,
Voraxaze™ as well as the new products acquired during the previous
financial year
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G&A expenses increased
to £6.7m (2006: £4.1m) and includes additional costs from the
MacroMed acquisition
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Loss before tax of
£6.1m (2006: £4.7m) reflects improved trading performance offset by
higher R&D and G&A
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Net cash increase of
£6.9m (2006: £7.5m decrease) due to receipt of £10m milestone
payment from AstraZeneca in April 2007
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Strong cash position of
£46.9m (2006: £17.9m) following fund raising of £38.4m in
January 2007 and the £10m milestone payment from AstraZeneca.
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Commenting on the results, Stuart
Wallis, Chairman, said:
“Protherics delivered good
progress in the first half with its broad clinical pipeline and has today announced that
the phase 2 DEEP study in pre-eclampsia has completed recruitment. We have also generated a
significant increase in revenues and gross profits due to the strong market performance of
CroFab and DigiFab. With CytoFab, the scaled up manufacturing process has produced a highly
potent product, allowing us to defer much of our investment in manufacturing until the
start of phase 3 with no anticipated impact on product launch. AstraZeneca is expected to
start its CytoFab phase 2 programme imminently.
“The rest of our development
pipeline continues to advance as planned, with six phase 2 programmes expected to be
on-going in 2008, including the phase 2b severe pre-eclampsia study which is on track to
deliver results in the second quarter of 2008. With a diverse and developing portfolio,
strong trading and a robust cash position, we are confident in Protherics’
prospects.”
| Ends |
There will be an analyst meeting at
9.30am UK time on Tuesday 20 November 2007 in London at the offices of Financial Dynamics
at Holborn Gate, 26 Southampton Buildings, WC2A 1PB. There will be a simultaneous
conference call and webcast. For further details, please contact Mo Noonan on +44 (0)20
7269 7116. To access the webcast please visit www.protherics.com
For further information
contact:
Protherics
PLC
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+44 (0)
20 7246 9950
+44 (0)
7919 480510
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Andrew
Heath, CEO
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Rolf Soderstrom, Finance
Director
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Nick
Staples, Corporate Affairs
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Protherics
Inc
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+1 615
327 1027
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Saul
Komisar, President
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Financial
Dynamics
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London:
Ben Atwell
/ Lara Mott
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+44 (0)
20 7831 3113
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New
York:
Jonathan
Birt / John Capodanno
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+1 212
850 5600
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Notes for Editors:
About Protherics
Protherics (LSE: PTI, NASDAQ: PTIL) is
a leading biopharmaceutical company focused on the development, manufacture and marketing
of specialised products for critical care and cancer.
Protherics has developed and
manufactures two biologics for critical care which are FDA approved and currently sold in
the US: CroFab™, a pit viper antivenom and DigiFab™, a digoxin antidote. The
Company’s strategy is to use the revenues generated from its marketed and
out-licensed products to help fund the advancement of its broad, late stage
pipeline.
Protherics has two major development
opportunities in its critical care portfolio. CytoFab™ is being developed by
AstraZeneca, for the treatment of severe sepsis, after a major £195 million licensing
deal with AstraZeneca in December 2005. An additional, expanded phase 2 programme is due to
start shortly. In addition, Protherics is currently undertaking a phase 2b study with
Digoxin Immune Fab for the treatment of pre-eclampsia. This study is expected to report in
the first half of 2008.
Protherics has a pipeline of four novel cancer products in
clinical development, and intends to undertake the sales and marketing of these products in
the US and or the EU. Protherics is preparing to resubmit a BLA for Voraxaze™, an
adjunct to high dose methotrexate therapy, under a rolling submission in the US starting in
H1 2008.
Protherics has a strong cash position,
with cash balances at 30 September 2007 of £46.9 million, having completed a
£38 million equity fundraising in January 2007 and received a £10 million
milestone payment from AstraZeneca in April 2007.
With headquarters in London, the
Company has approximately 290 employees across its operations in the UK, US and
Australia.
For further information visit:
www.protherics.com
Disclaimer
This document contains forward-looking
statements that involve risks and uncertainties including with respect to future growth,
technology acquisitions, product sales and manufacturing, and regulatory approval of
Protherics’ products for marketing and distribution. Although we believe that the
expectations reflected in such forward-looking statements are reasonable at this time, we
can give no assurance that such expectations will prove to be correct. Given these
uncertainties, readers are cautioned not to place undue reliance on such forward-looking
statements. Actual results could differ materially from those anticipated in these
forward-looking statements due to many important factors, including the market for the
Company’s products, the timing and receipt of regulatory approvals, the successful
integration of acquired businesses and intellectual property, and other factors discussed
in Protherics’ Annual Report on Form 20-F and other reports filed from time to time
with the U.S. Securities and Exchange Commission. We do not undertake to update any oral or
written forward-looking statements that may be made by, or on behalf of,
Protherics.
INTERIM STATEMENT
Corporate Overview
Protherics’ strategy is to build a leading
biopharmaceutical company, focused on the development, manufacture and marketing of
specialist products in critical care and cancer. The performance of our marketed critical
care products, CroFab™ and DigiFab™, over the six month period has been strong,
with excellent underlying and reported growth. With increased investment in R&D,
substantial progress has been made in our development pipeline over the period: we
continued to focus on the work required to support our regulatory submissions for
Voraxaze™, provided CytoFab™ clinical trial material to our partner AstraZeneca
and moved several of our development programmes into phase 2 development.
Progress has also been made in realising value from our
non-core assets gained through our acquisitions of MacroMed Inc. and CoVaccine B.V. A
licensing agreement was signed with Nobilon B.V., the human vaccine development unit
of
Organon BioSciences which was recently acquired
by
Schering Plough. Nobilon will use our CoVaccine HT
adjuvant in the development of a seasonal elderly flu vaccine and a pandemic flu vaccine.
An agreement was also signed with MyungMoon Pharm. Co. Ltd. for the use of our ReGel™
injectable, thermosensitive sustained release polymer delivery system for the development
of anti-inflammatory products for the treatment of arthritis. We also have interest from a
number of other parties in our non-core assets.
R & D pipeline update
CytoFab™
- for sepsis resulting from
uncontrolled infection
CytoFab™ is an anti-TNF-alpha
polyclonal antibody fragment (Fab) product for the treatment of sepsis, which was
out-licensed to our partner, AstraZeneca, in December 2005. Protherics has completed the
manufacturing process scale up at its approved facility in Wales, and large scale batches
of CytoFab™ have been produced using the new commercial process. The results of this
work have been extremely pleasing on several fronts. Firstly, preclinical models have
revealed good comparability of the scaled up, revised process with the clinical trial
material used in our previous phase 2b study. Secondly, the product yields and batch
consistency of the manufactured material are in line with expectations.
Thirdly, and importantly, the potency
of the new material is considerably ahead of our expectations, reducing our requirement for
serum and consequently the number of batches that need to be processed to meet demand on
launch. This means that Protherics can use its existing manufacturing facility in Wales to
supply product for market launch without the need for a larger standalone production
facility. As a result, the majority of the manufacturing investment to build a second
facility will be deferred until the end of the phase 2 study, with no anticipated impact on
the timing of product launch. With the next milestone payments largely allocated to
manufacturing investment, it has been agreed with AstraZeneca that the schedule of the
milestone payments to Protherics will remain as per the original licensing agreement in
2005. As a result, Protherics expects to receive its next milestone payment in
2010.
AstraZeneca is poised to start its expanded 480 patient phase
2 programme having recently held a clinical investigators meeting and initiated several of
the trial sites. We all look forward to CytoFab™ again being administered to patients
with this life-threatening condition.
CytoFab™ revenues of £1.1
million were recognised in the six months ended 30 September 2007 compared to £1.1
million in the corresponding six months period to 30 September 2006.
Digoxin Immune Fab – treatment
of pre-eclampsia
Protherics has the rights to use
Digoxin Immune Fabs (DigiFab™ and GlaxoSmithKline’s Digibind®) as potential
treatments for pre-eclampsia, a potentially life-threatening condition of pregnancy
occurring in approximately 7-9% of pregnancies. With no products currently available to
treat this condition, and very few in development, Digoxin Immune Fabs have the opportunity
to meet a considerable unmet need in the treatment of pre-eclampsia.
Recruitment in the phase 2b DEEP study
to investigate the use of Digibind® in 50 patients with severe pre-eclampsia has been
completed and the last patient dosed. The study is on track to report in the second quarter
of 2008.
Voraxaze
- for the
control of high dose methotrexate therapy in cancer
Voraxaze™ (glucarpidase) contains
an enzyme that rapidly breaks down the cancer drug methotrexate (MTX). Voraxaze™ has
been developed to prevent or reduce the serious and potentially life threatening toxicity
that can result when patients
receiving high doses of MTX (HDMTX) for
the treatment of cancer have difficulty eliminating MTX from the body.
Protherics has commenced the additional
manufacturing work requested by the FDA to support a Voraxaze™ marketing application
in the US. We have agreed the design of a small study to address the interaction of
Voraxaze™ with leucovorin with FDA and the protocol has been filed to our IND. The
study is expected to commence at the start of 2008. Protherics has requested a meeting with
the EMEA to discuss the suitability of this study to support a potential re-submission of a
Marketing Authorisation Application in the EU.
Voraxaze™ continues to be
available in Europe and elsewhere outside the US on a named patient basis. In the US it is
being supplied under a Treatment Protocol with recovery of development costs. In Europe,
revenues for the six months ended 30 September 2007 amounted to £0.8 million
(£0.6 million in 2006), while revenues from Treatment Protocol in the US were
£0.4 million, ahead of our expectations.
OncoGel™
–
locoregional control of solid
tumours
OncoGel™ is a novel
locally-administered sustained-release formulation of paclitaxel, an established
chemotherapeutic for the treatment of solid tumours.
Following the successful phase 2a
oesophogeal cancer study which was reported in May 2007, we recently initiated a randomized
multinational phase 2b study to evaluate OncoGel™ administered in combination with
pre-operative chemoradiotherapy versus pre-operative chemoradiotherapy alone in 124
patients. The primary endpoint of the study is a blinded assessment of tumour response with
overall survival a secondary endpoint. Protherics expects to have preliminary data
available from the phase 2b study in 2010.
In March, we initiated a phase 1/2
study of OncoGel™ in primary brain cancer and we have completed recruitment of
patients into the first dose cohort. The
Data Safety Monitoring Board has
considered data from the first cohort of three patients, which includes serious adverse
events that may be related to treatment with OncoGel, and has recommended continuing the
study with a modified protocol; further recruitment into the study is pending agreement
with FDA.
Prolarix
TM
– targeted
therapy for liver cancer and certain other solid tumours
Prolarix™ is comprised of a small
molecule prodrug, tretazicar, which is converted to a highly cytotoxic agent when
administered with its cosubstrate, caricotamide, by an endogenous enzyme, NQ02. This enzyme
has elevated activity in certain tumours, in particular hepatocellular carcinoma (HCC)
offering a potentially selective therapeutic effect.
A phase 1 study of Prolarix™ is
being run under the auspices of Cancer Research UK (CRUK). The maximum tolerated dose
(“MTD”) for Prolarix™ has been determined, and an additional cohort of
six patients is being recruited to evaluate the effects of repeated cycles of
Prolarix™ on various tumour types. The study is expected to complete in the first
half of 2008. Having reached the MTD, Protherics plans to start a phase 2 programme in the
first half of 2008 to investigate tumour responses in primary liver cancer (HCC) patients
treated with up to six cycles of Prolarix™. This phase 2 programme will comprise an
open-label run-in to a larger controlled study in which Prolarix™ will be added to
sorafenib and compared with sorafenib alone. The open-label run-in should provide an early
indication of potential efficacy in HCC patients.
Acadra™ (acadesine) –
selective therapy for B-cell Chronic Lymphocytic Leukemia (B-CLL)
Most drugs used to treat B-CLL by
killing B-cells also kill T-cells, increasing the risk of serious infection, a common cause
of death in patients with B-CLL. Acadra™ is a potentially selective treatment for
B-CLL: it has been shown to cause the death of B-cells whilst sparing T-cells when
administered to blood samples taken from patients with B-CLL. It has also been shown to
cause the death of B-cells when administered to the blood of patients who are refractory to
fludarabine, one of the most commonly used treatments for B-CLL.
Protherics and its co-development
partner, Advancell, have initiated a phase 1/2 study with Acadra™ in patients with
recurrent or refractory B-CLL. The study is being undertaken in Belgium, France and Spain
and will enroll up to 30 B-CLL patients. Part I of the study is an open-label assessment of
the safety and tolerability of escalating single doses of Acadra™ followed, in Part
II, by an assessment of repeated doses for up to 5 cycles of treatment. In addition to
safety and tolerability, the pharmacokinetics of acadesine and its active metabolite, ZMP,
will be determined and its effects on B-cell and T-cell counts will be assessed. Part I of
the study is expected to be completed around mid-2008, with the intention of providing
initial evidence of a potential selective effect, with the final study results expected in
H1 2009.
Angiotensin Therapeutic Vaccine
– management of high blood pressure
Protherics’ Angiotensin
Therapeutic Vaccine is designed to induce endogenous antibodies to angiotensin, one of the
key hormones involved in the regulation of blood pressure. Encouraging clinical and
preclinical results suggest that effective neutralisation of angiotensin may cause a
clinically significant reduction in blood pressure in hypertensive patients.
Protherics intends to start a phase 2a
study with the new formulation which incorporates our novel adjuvant, CoVaccine HT, in the
first half of 2008. The goal of this study will be to confirm that the new formulation
increases levels of anti-angiotensin antibodies in hypertensive patients and to establish
whether this results in a reduction in blood pressure. On successful completion of this
study we intend to out-license the vaccine.
Marketed Products, Business
Environment and Financial Update
CroFab™ [Crotalidae Polyvalent
Immune Fab (Ovine)] – pit viper antivenom
CroFab™ is a polyclonal antibody
fragment for the management of minimal or moderate North American crotalid (pit viper)
envenomation. It is currently the only product marketed for these bites in the US, where
there are around 8,000 pit viper bites reported each year. We believe that CroFab™
continues to increase its market penetration and has now captured over half of a potential
$70-80 million per annum market opportunity.
CroFab™ sales were £10.3
million in the half year compared to £7.2 million in the corresponding six months to
30 September 2006. The improvement in sales was driven by higher shipments of product to
Fougera during the biting season and an increase in product sales.
DigiFab™ [Digoxin Immune Fab
(Ovine)] – treatment for life-threatening digoxin toxicity
It is estimated that 16 million digoxin
prescriptions were written in the US in 2006 (IMS data). Digoxin has a narrow therapeutic
range, and toxicity is estimated to occur in 26% to 29% of all patients. Moreover, reported
digoxin toxicities in the US were 10.5% higher in 2005 than in 1995 (AAPCC
data).
DigiFab™ is now the market leader
in the US digoxin toxicity market, estimated to be worth approximately $25 million per
annum. Sales by our distributor, Fougera, to the wholesale market increased by 24% over the
prior period.
The Company’s focus on delivering
CroFab™ during the snake bite season has necessarily led to timing the manufacture of
DigiFab™ into the second half of the year, thereby leading to a reduction in
shipments of DigiFab™ in the first half of 2007. As a result, total DigiFab™
revenues remained steady at £1.9 million but with a strong order backlog, the Company
anticipates that shipments in the second half and over the full year will exceed that of
the prior year.
The regulatory review process to gain
marketing approval in Europe via an initial approval in the UK has been very slow and we
have now been requested to supply more data to support the application made by Beacon
Pharmaceuticals, our licensee in most mainland European countries. Named patient sales of
DigiFab™ outside of the US continue to increase.
ViperaTAb
™ – European viper antivenom
ViperaTAb
™
sales at £0.2
million were marginally down on the prior year (2006: £0.3 million).
Impact of US $ exchange
rate
US derived revenues show the underlying
sales performance in US dollars increased by 41% year on year. The weakening of the US $ to
the £ resulted in an average exchange rate of $2.01 (2006: $1.85)
Half year to 30 September
(IFRS)
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2007
$m
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2007
£m
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2006
$m
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2006
£m
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CroFab
™
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20.7
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10.3
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13.3
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7.2
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DigiFab
™
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3.5
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1.7
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3.5
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1.9
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ViperaTAb
™
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0.3
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0.2
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0.6
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0.3
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Total
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24.5
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12.2
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17.4
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9.4
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Average exchange rate ($/£)
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2.01
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1.85
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Voraxaze
™
,
CytoFab
™
and Other Revenues
Half year to 30 September
(IFRS)
|
2007
£m
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2006
£m
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Voraxaze
™
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1.2
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0.6
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CytoFab
™
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1.1
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1.1
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BSE
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0.1
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0.1
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Other
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0.2
_____
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0.1
_____
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2.6
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1.9
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US Derived
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12.2
_____
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9.4
_____
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Total
Revenues
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14.8
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11.3
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Named patient sales of
Voraxaze
™
outside of the US increased by 33% to
£0.8 million in the half year ended 30 September 2007 from £0.6 million in the
corresponding six month period, as awareness of the product in the medical community
continues to build. In addition, the FDA allowed Protherics to supply Voraxaze in the US
under a Treatment IND with cost recovery resulting in an additional £0.4 million of
revenues in the period.
CytoFab
™
revenues of
£1.1 million for the six months represent a portion of the initial upfront payment of
£16.3 million received under the licensing agreement with AstraZeneca, which is being
recognised under IFRS over the estimated period to product approval. Revenues from BSE
testing remain constant at £0.1 million.
Cost of Sales and Gross
Profit
Cost of sales for the six month period
was £6.6 million compared to £5.0 million in the corresponding period. Gross
margins on manufactured products (excluding milestone and royalty revenues with no
associated manufacturing cost) showed continued improvement as shown in the table
below:
Half year to 30 September
(IFRS)
|
2007
£m
|
2006
£m
|
Revenues*
|
13.6
|
10.0
|
Cost of Sales
|
(6.6)
_____
|
(5.0)
_____
|
Gross Profit
|
7.0
_____
|
5.0
_____
|
|
|
|
Gross Margin (on
manufactured products)
|
51.5%
|
50.0%
|
*Revenues include sales of
CroFab
™
,
DigiFab
™
,
ViperaTAb
™
and
Voraxaze
™
Gross profits have improved over the
corresponding six month period due to significantly improved CroFab™ volumes and the
inclusion of Voraxaze™ sales under the cost recovery programme in the US.
Research and
Development
As planned,
R&D expenditure has increased
significantly to £8.6 million in the half year from £7.1 million as we have
invested in our expanded development pipeline. Significant effort has continued on scaling
up the
CytoFab
™
manufacturing process and on
Voraxaze
™
to support planned regulatory filings.
In addition, work has commenced on the manufacture of Prolarix™, CoVaccine HT™
and Angiotensin Therapeutic Vaccine to support the forthcoming phase 2 studies.
General and
Administrative
Expenses
General and administrative expenses
have increased to £6.7 million from £4.1 million after adjustments under IFRS
for currency effects and charges on employee options. Movements in the fair value of
currency contracts and gains on inter-group balances have produced a loss of £0.4m
compared to a gain of £0.7 million in 2006. The acquisition of MacroMed in December
2006 has resulted in an increase in overhead expenses of £0.5 million in comparison
to the prior period. Underlying general and administrative expenses are therefore
increasing in line with expectations as additional resources have been added to support the
increasing pipeline activity.
Finance Income and
Costs
Finance income has increased to
£1.3 million from £0.5 million in line with the increased cash balances and
improved interest rates. Finance costs have remained stable at £0.2
million.
Results Before and After
Tax
The Company has an overall tax charge
of £0.2 million on a loss of £6.1 million. This charge consists of a £0.2
million UK R&D tax credit offset by a provision of £0.4 million against US tax
prepayments relating to CytoFab™, the recovery of which are not expected within the
forthcoming year.
Balance Sheet
Non current assets of £40.8
million increased from £40.6 million at 31 March 2007 reflecting an increase in
property plant and equipment offset by amortization of other intangible assets. The
increase from £20.7 million at 30 September 2006 relates principally to the
intangible assets acquired through the acquisitions in December 2006.
Current assets at 30 September 2007
were £62.0 million, which shows a decrease from £66.6 million at 31 March 2007,
but up from £34.1 million at 30 September 2006. The increase compared to the prior
period is primarily due to the fundraising in December 2006 and the £10m milestone
received from AstraZeneca in April 2007. Inventory decreased from £10.7 million at 31
March 2007 to £9.7 million reflecting reduced serum levels. Debtors decreased from
£15.1 million at 31 March 2007 to £5.1 million at 30 September 2007 following
receipt of the £10 million milestone from AstraZeneca.
Total liabilities increased from
£30.8 million at 31 March 2007 to £31.6 million at 30 September 2007 and
compare to £31.7 million in the prior year period. Non current liabilities fell to
£13.6 million at 30 September 2007 as deferred income relating to CytoFab™ was
released to profit. Current liabilities increased to £18.0 million at 30 September
2007, from £15.4 million at 31 March 2007, as trade creditors increased reflecting
increased down payments from our US distributor Fougera for product due for delivery in the
next 12 months.
Cash Flow
Net cash inflows from operations were
£8.0 million in the six month period, compared to an outflow of £6.0 million in
the corresponding half year. This is a result of increased trading losses offset by
positive movements in working capital, notably the receipt of the AstraZeneca milestone in
April 2007. Cash and cash equivalents at the end of the period were £46.9 million, up
from £40.0 million at 31 March 2007 and £17.9 million 30 September 2006. The
increase follows the equity placement in December 2006 which raised £38 million and
the £10 million milestone payment received from AstraZeneca in April 2007.
Outlook
Protherics continues to experience a
period of growth and expansion, with increasing revenues for marketed products, an enhanced
portfolio of products in development and significant progress in the manufacturing scale up
for CytoFab™. Protherics intends to defer the bulk of its CytoFab manufacturing
investment until after the completion of AstraZeneca’s phase 2 programme, which is
expected to start shortly. We are also focusing on the work plan required to support
potential marketing approval for Voraxaze™, and in advancing our other clinical
programmes into phase 2 development.
Protherics
PLC
CONDENSED CONSOLIDATED INCOME
STATEMENT (UNAUDITED)
for the six months ended 30
September 2007
|
|
Six
months
ended 30
September
2007
|
Six months
ended 30
September
2006
|
Year
ended 31
March
2007
|
|
Notes
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
Revenue
|
3
|
14,818
|
11,251
|
31,119
|
Cost of sales
|
|
(6,589)
_____
|
(5,046)
_____
|
(11,334)
_____
|
Gross
profit
|
|
8,229
|
6,205
|
19,785
|
|
|
|
|
|
Administrative
expenses
|
|
|
|
|
Research and
development
|
|
(8,638)
|
(7,054)
|
(13,978)
|
General &
administrative
|
|
(6,695)
_____
|
(4,110)
_____
|
(10,161)
_____
|
Total administrative
expenses
|
|
(15,333)
_____
|
(11,164)
_____
|
(24,139)
_____
|
|
|
|
|
|
Operating
loss
|
3
|
(7,104)
|
(4,959)
|
(4,354)
|
|
|
|
|
|
Finance income
|
|
1,253
|
472
|
1,155
|
Finance costs
|
|
(213)
_____
|
(199)
_____
|
(417)
_____
|
Loss before
tax
|
|
(6,064)
|
(4,686)
|
(3,616)
|
Tax
|
6
|
(159)
_____
|
165
_____
|
259
_____
|
Loss for the period,
attributable to equity shareholders
|
|
(6,223)
_____
|
(4,521)
_____
|
(3,357)
_____
|
|
|
|
|
|
|
|
|
|
|
|
|
Pence
|
Pence
|
Pence
|
Loss per share
|
|
|
|
|
Basic and
diluted
|
7
|
(1.8)
|
(1.7)
|
(1.2)
|
|
|
|
|
|
All revenue and results arose from
continuing operations.
Protherics
PLC
CONDENSED CONSOLIDATED STATEMENT OF
RECOGNISED INCOME AND EXPENSE (UNAUDITED)
for the six months ended 30
September 2007
|
Six months ended 30 September 2007
|
|
Six months ended 30 September
2006
|
Year
ended 31
March
2007
|
|
£’000
|
|
£’000
|
£’000
|
|
|
|
|
|
Exchange differences on translation of
foreign operations
|
268
_____
|
|
351
_____
|
749
_____
|
Net income recognised directly in equity
|
268
|
|
351
|
749
|
|
|
|
|
|
Loss for the
period
|
(6,223)
_____
|
|
(4,521)
_____
|
(3,357)
_____
|
Total recognised expense
for the period
|
(5,955)
_____
|
|
(4,170)
_____
|
(2,608)
_____
|
All recognised income and expense is
attributable to equity shareholders.
Protherics
PLC
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
at 30 September 2007
|
Notes
|
30 September
2007
|
30 September
2006
|
31 March
2007
|
|
|
£’000
|
£’000
|
£’000
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
10,838
|
9,199
|
10,878
|
Intangible
assets
|
8
|
19,063
|
1,265
|
19,652
|
Property, plant and
equipment
|
9
|
10,756
|
10,009
|
9,987
|
Deferred tax
assets
|
|
104
_____
|
179
_____
|
99
_____
|
|
|
40,761
_____
|
20,652
_____
|
40,616
_____
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
9,697
|
11,404
|
10,707
|
Financial assets
|
|
31
|
172
|
114
|
Tax receivables
|
|
338
|
604
|
773
|
Trade and other
receivables
|
|
5,088
|
4,024
|
15,066
|
Cash and cash
equivalents
|
|
46,889
_____
|
17,921
_____
|
39,989
_____
|
|
|
62,043
_____
|
34,125
_____
|
66,649
_____
|
|
|
|
|
|
Total
assets
|
|
102,804
|
54,777
|
107,265
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade and other
payables
|
|
16,640
|
13,803
|
14,037
|
Current tax
liabilities
Financial
liabilities
|
|
317
|
272
|
273
|
Obligations under finance
leases
|
|
1,016
|
859
|
1,048
|
Bank overdrafts, loans and
other borrowings
|
|
16
_____
|
34
_____
|
46
_____
|
|
|
17,989
_____
|
14,968
_____
|
15,404
_____
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Trade and other
payables
|
|
9,541
|
12,170
|
10,844
|
Financial
liabilities
|
|
|
|
|
Borrowings
|
|
139
|
198
|
157
|
Convertible loan
notes
|
|
2,091
|
2,233
|
2,100
|
Obligations under finance
leases
|
|
1,853
_____
|
2,153
_____
|
2,289
_____
|
|
|
13,624
_____
|
16,754
_____
|
15,390
_____
|
|
|
|
|
|
Total
liabilities
|
|
31,613
_____
|
31,722
_____
|
30,794
_____
|
|
|
|
|
|
Net
assets
|
|
71,191
_____
|
23,055
_____
|
76,471
_____
|
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
10
|
6,787
|
5,216
|
6,783
|
Share premium
account
|
|
136,026
|
87,315
|
135,951
|
Shares to be
issued
|
|
1,417
|
-
|
1,289
|
Merger reserve
|
|
51,163
|
51,163
|
51,163
|
Equity reserve
|
|
217
|
266
|
220
|
Cumulative translation
reserve
|
|
826
|
160
|
558
|
Retained
earnings
|
|
(125,245)
_____
|
(121,065)
_____
|
(119,493)
_____
|
Total
equity
|
|
71,191
_____
|
23,055
_____
|
76,471
_____
|
Protherics
PLC
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (UNAUDITED)
|
Share
capital
|
Share premium
|
|
Shares to be issued
|
Merger
reserve
|
Equity reserve
|
Cumulative translation reserve
|
Retained earnings
|
Total
|
|
£’000
|
£’000
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2006
|
5,186
|
86,770
|
|
-
|
51,163
|
263
|
(191)
|
(116,839)
|
26,352
|
|
|
|
|
|
|
|
|
|
|
Currency translation
adjustments
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
351
___
|
-
___
|
351
___
|
Net income recognised
directly in equity
|
-
|
-
|
|
-
|
-
|
-
|
351
|
-
|
351
|
Loss for the
period
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
-
___
|
(4,521)
___
|
(4,521)
___
|
Total recognised gain for the period
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
351
___
|
(4,521)
___
|
(4,170)
___
|
|
|
|
|
|
|
|
|
|
|
New share capital
subscribed
|
2
|
46
|
|
-
|
-
|
|
-
|
-
|
48
|
Issue of convertible loan
notes
|
-
|
-
|
|
-
|
-
|
30
|
-
|
-
|
30
|
Conversion of convertible loan
notes
|
28
|
499
|
|
-
|
-
|
(27)
|
-
|
-
|
500
|
Employee share option
scheme:
|
|
|
|
|
|
|
|
|
|
- value of services
provided
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
-
___
|
295
___
|
295
___
|
Balance at 30 September 2006
|
5,216
___
|
87,315
___
|
|
-
___
|
51,163
___
|
266
___
|
160
___
|
(121,065)
___
|
23,055
___
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 October 2006
|
5,216
|
87,315
|
|
-
|
51,163
|
266
|
160
|
(121,065)
|
23,055
|
|
|
|
|
|
|
|
|
|
|
Currency translation
adjustments
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
398
___
|
-
___
|
398
___
|
Net income recognised
directly in equity
|
-
|
-
|
|
-
|
-
|
-
|
398
|
-
|
398
|
Profit for the
period
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
-
___
|
1,164
___
|
1,164
___
|
Total recognised gain for the period
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
398
___
|
1,164
___
|
1,562
___
|
|
|
|
|
|
|
|
|
|
|
New share capital
subscribed
|
1,558
|
48,453
|
|
-
|
-
|
|
-
|
-
|
50,011
|
Shares to be issued
|
-
|
-
|
|
1,289
|
-
|
-
|
-
|
-
|
1,289
|
Issue of convertible loan
notes
|
-
|
-
|
|
-
|
-
|
156
|
-
|
-
|
156
|
Conversion of convertible loan
notes
|
9
|
183
|
|
-
|
-
|
(202)
|
-
|
-
|
(10)
|
Employee share option
scheme:
|
|
|
|
|
|
|
|
|
|
- value of services
provided
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
-
___
|
408
___
|
408
___
|
Balance at 31 March 2007
|
6,783
___
|
135,951
___
|
|
1,289
___
|
51,163
___
|
220
___
|
558
___
|
(119,493)
___
|
76,471
___
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2007
|
6,783
|
135,951
|
|
1,289
|
51,163
|
220
|
558
|
(119,493)
|
76,471
|
|
|
|
|
|
|
|
|
|
|
Currency translation
adjustments
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
268
___
|
-
___
|
268
___
|
Net income recognised
directly in equity
|
-
|
-
|
|
-
|
-
|
-
|
268
|
-
|
268
|
Loss for the
period
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
-
___
|
(6,223)
___
|
(6,223)
___
|
Total recognised gain / (loss) for the period
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
268
___
|
(6,223)
___
|
(5,955)
___
|
|
|
|
|
|
|
|
|
|
|
New share capital
subscribed
|
2
|
46
|
|
-
|
-
|
-
|
-
|
-
|
48
|
Shares to be issued
|
-
|
-
|
|
128
|
-
|
-
|
-
|
-
|
128
|
Conversion of convertible loan
notes
|
2
|
29
|
|
-
|
-
|
(3)
|
-
|
-
|
28
|
Employee share option
scheme:
|
|
|
|
|
|
|
|
|
|
- value of services
provided
|
-
___
|
-
___
|
|
-
___
|
-
___
|
-
___
|
-
___
|
471
___
|
471
___
|
Balance at 30 September 2007
|
6,787
___
|
136,026
___
|
|
1,417
___
|
51,163
___
|
217
___
|
826
___
|
(125,245)
___
|
71,191
___
|
Protherics
PLC
CONDENSED CONSOLIDATED CASH FLOW
STATEMENT (UNAUDITED)
for the six months ended 30
September 2007
|
Six months
to
30 September
2007
|
Six months to
30 September
2006
|
Year ended 31
31 March 2007
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Cash generated from
operations
|
|
7,712
|
|
(6,302)
|
|
(16,051)
|
Income tax paid
|
|
(258)
|
|
-
|
|
-
|
Income tax
received
|
|
530
_____
|
|
290
_____
|
|
293
_____
|
Net cash inflow /
(outflow) from operating activities
|
|
7,984
_____
|
|
(6,012)
_____
|
|
(15,758)
_____
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
Interest
received
|
1,253
|
|
472
|
|
1,155
|
|
Proceeds on disposal of
property, plant and equipment
|
-
|
|
-
|
|
2
|
|
Purchases of property,
plant and equipment
|
(1,601)
|
|
(1,201)
|
|
(1,242)
|
|
Purchases of other
intangible non- current assets
|
-
|
|
(293)
|
|
(4,092)
|
|
Acquisition of subsidiary,
net of cash acquired
|
-
_____
|
|
-
_____
|
|
(374)
_____
|
|
Net cash (used in)
investing activities
|
|
(348)
_____
|
|
(1,022)
_____
|
|
(4,551)
_____
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
Interest paid
|
(76)
|
|
(94)
|
|
(170)
|
|
Interest paid on finance
leases
|
(118)
|
|
(88)
|
|
(213)
|
|
Repayment of
borrowings
|
(44)
|
|
(12)
|
|
(36)
|
|
Repayment of finance
leases
|
(521)
|
|
(317)
|
|
(837)
|
|
Proceeds from issue of loan
note
|
-
|
|
-
|
|
30
|
|
Proceeds from issue of
shares
|
48
_____
|
|
78
_____
|
|
36,162
_____
|
|
Net cash (used in) /
from financing activities
|
|
(711)
_____
|
|
(433)
_____
|
|
34,936
_____
|
|
|
|
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents
|
|
6,925
|
|
(7,467)
|
|
14,627
|
|
|
|
|
|
|
|
Cash and cash equivalents
at the beginning of period
|
|
39,989
|
|
25,438
|
|
25,438
|
|
|
|
|
|
|
|
Effect of foreign exchange
rate changes
|
|
(25)
_____
|
|
(50)
_____
|
|
(76)
_____
|
Cash and cash
equivalents at the end of period
|
|
46,889
_____
|
|
17,921
_____
|
|
39,989
_____
|
Protherics
PLC
NOTES TO THE CONDENSED CONSOLIDATED
CASH FLOW STATEMENT (UNAUDITED)
for the six months ended 30
September 2007
Reconciliation of operating loss to
net cash outflow from operating activities
|
Six
months
ended 30
September
2007
|
Six months
ended 30
September
2006
|
Year
ended 31 March
2007
|
|
£’000
|
£’000
|
£’000
|
|
|
|
|
Loss for the
period
|
(6,223)
|
(4,521)
|
(3,357)
|
Tax
|
159
|
(165)
|
(259)
|
Finance costs
|
213
|
199
|
417
|
Finance income
|
(1,253)
_____
|
(472)
_____
|
(1,155)
_____
|
Operating loss
|
(7,104)
|
(4,959)
|
(4,354)
|
|
|
|
|
Adjustments for:
|
|
|
|
Change in fair value of
derivatives
|
83
|
(308)
|
(250)
|
Deferred grant
income
|
(52)
|
(55)
|
(111)
|
Share-based payment
costs
|
471
|
295
|
703
|
Depreciation of property,
plant and equipment
|
896
|
576
|
1,373
|
Amortisation of intangible
fixed assets
|
246
|
66
|
135
|
Loss on disposal of
property, plant and equipment
|
58
_____
|
50
_____
|
634
_____
|
Operating cash flows before
movements in working capital
|
(5,402)
|
(4,335)
|
(1,870)
|
|
|
|
|
Decrease / (increase) in
inventories
|
1,023
|
(628)
|
131
|
Decrease / (increase) in
receivables
|
9,854
|
282
|
(10,575)
|
Increase / (decrease) in
payables
|
2,237
_____
|
(1,621)
_____
|
(3,737)
_____
|
Net cash flows from
operating activities
|
7,712
_____
|
(6,302)
_____
|
(16,051)
_____
|
|
|
|
|
Analysis of net debt
|
1 April 2007
|
Cash flow
|
Exchange
movement
|
Other non-cash
changes
|
30 September
2007
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
|
Cash and cash
equivalents
|
39,989
|
6,925
|
(25)
|
-
|
46,889
|
Loans – amounts
falling due in less than one year
|
(46)
|
44
|
(1)
|
(13)
|
(16)
|
Loans – amounts
falling due in more than one year
|
(2,257)
|
-
|
5
|
22
|
(2,230)
|
Obligations under finance
lease and hire purchase obligations
|
(3,337)
_____
|
521
_____
|
(6)
_____
|
(47)
_____
|
(2,869)
_____
|
|
34,349
_____
|
7,490
_____
|
(27)
_____
|
(38)
_____
|
41,774
_____
|
Protherics
PLC
NOTES TO THE CONDENSED
FINANCIAL STATEMENTS
The condensed financial statements have
been prepared using accounting policies consistent with International Financial Reporting
Standards (IFRS) and in accordance with International Accounting Standard (IAS) 34, Interim
Financial Reporting. They do not include all of the information required for full annual
financial statements, and should be read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 31 March 2007 which have been prepared
in accordance with IFRS as adopted by the European Union. These condensed financial
statements were approved by the Board of Directors on 19 November 2007.
The comparative figures for the year
ended 31 March 2007 are not the Company’s financial statements for that financial
year. Those accounts have been reported on by the Company’s auditors and delivered to
the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a statement under section 237(2)
or (3) of the Companies Act 1985.
The condensed financial statements have
not been audited or reviewed pursuant to Auditing Practices Board guidance on review of
Interim Financial Information.
|
2.
|
Significant accounting
policies
|
The condensed financial statements have
been prepared under the historical cost convention, except for the revaluation of certain
financial instruments.
The same accounting policies,
presentation and methods of computation are followed in these condensed financial
statements as were applied in the preparation of the Company’s financial statements
for the year ended 31 March 2007.
As at 30 September 2007, the Group is
organised into two operating segments, the sale, manufacture and development of
pharmaceutical products and out-licensed product royalties.
Six months ended 30
September 2007
|
Sale, manufacture and
development of pharmaceutical products
|
Out-licensed product royalties
|
Consolidated
|
|
£’000
|
£’000
|
£’000
|
Revenue
|
|
|
|
External sales
|
14,739
|
79
|
14,818
|
Inter-segment
sales
|
-
_____
|
-
_____
|
-
_____
|
Total
revenue
|
14,739
_____
|
79
_____
|
14,818
_____
|
|
|
|
|
Operating (loss) /
profit
|
(7,182)
|
78
|
(7,104)
|
|
|
|
|
Finance income
|
|
|
1,253
|
Finance costs
|
|
|
(213)
_____
|
Loss before tax
|
|
|
(6,064)
|
Tax
|
|
|
(159)
_____
|
Loss for the period,
attributable to equity shareholders
|
|
|
(6,223)
_____
|
|
|
|
|
Six months ended 30
September 2006
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
External
sales
|
11,124
|
127
|
11,251
|
Inter-segment
sales
|
-
_____
|
-
_____
|
-
_____
|
Total
revenue
|
11,124
_____
|
127
_____
|
11,251
_____
|
|
|
|
|
Operating (loss) /
profit
|
(5,086)
|
127
|
(4,959)
|
|
|
|
|
Finance
income
|
|
|
472
|
Finance
costs
|
|
|
(199)
_____
|
Loss
before tax
|
|
|
(4,686)
|
Tax
|
|
|
165
_____
|
Loss for the period,
attributable to equity shareholders
|
|
|
(4,521)
_____
|
|
|
|
|
Year ended 31 March
2007
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
External
sales
|
30,842
|
277
|
31,119
|
Inter-segment
sales
|
-
_____
|
-
_____
|
-
_____
|
Total
revenue
|
30,842
_____
|
277
_____
|
31,119
_____
|
|
|
|
|
Operating (loss) /
profit
|
(4,621)
|
267
|
(4,354)
|
|
|
|
|
Finance
income
|
|
|
1,155
|
Finance
costs
|
|
|
(417)
_____
|
Loss
before tax
|
|
|
(3,616)
|
Tax
|
|
|
259
_____
|
Loss for the period,
attributable to equity shareholders
|
|
|
(3,357)
_____
|
|
4.
|
Operations in the
interim period
|
A significant proportion of the
Group’s expected revenues arise from its
CroFab
TM
rattlesnake antivenom treatment and is
subject to seasonal fluctuations, with peak demand in the first six months of the
Group’s financial year caused by the hibernation patterns of such snakes. In the year
to 31 March 2008, the Group anticipates that its revenues from
CroFab
TM
will reflect this seasonality to a
greater extent than in the previous year. In the six months to 30 September 2007, the group
recognised £10,297,000 of
CroFab
TM
revenues (six months ended 30 September
2006 £7,162,000) and £14,130,000 for the six months ended 31 March
2007.
In the second half of year ended 31
March 2007, the Group recognised a £10,000,000 manufacturing milestone relating to
the development of
CytoFab
TM
which became receivable from
AstraZeneca. The Group does not anticipate recognition of similar amounts in the current
year.
|
5.
|
Changes in
inventories
|
During the six months ended 30
September 2007, the Group recognised a provision of raw materials, work in progress and
finished goods inventory relating to items which relate to research and development
programmes where the Group does not consider it probable that it is able to realise
economic value from their sale or use. This provision amounted to £1,856,000. If the
circumstances that previously caused these inventories to be written down below cost
subsequently change and there is clear evidence of an increase in economic value, this
provision will be reversed.
|
Six months ended 30 September 2007
|
|
Six months ended 30 September
2006
|
Year
ended 31
March
2007
|
|
£’000
|
|
£’000
|
£’000
|
Current tax:
|
|
|
|
|
UK current tax
|
199
|
|
185
|
360
|
Foreign tax
|
(358)
|
|
-
|
3
|
Deferred tax
|
-
_____
|
|
(20)
_____
|
(104)
_____
|
|
(159)
_____
|
|
165
_____
|
259
_____
|
The UK current tax credits principally
arise as a result of research and development expenditure claimed under the Finance Act
2000.
7. Loss
per share
The calculation of the basic and
diluted loss per share is based on the following data:
|
Six months ended 30 September 2007
|
|
Six months ended 30 September
2006
|
Year
ended 31
March
2007
|
|
£’000
|
|
£’000
|
£’000
|
Loss
|
|
|
|
|
Loss for the purposes of basic loss per
share being net profit attributable to equity shareholders of the
parent
|
(6,223)
|
|
(4,521)
|
(3,357)
|
Effect of dilutive potential ordinary
shares
|
-
____
|
|
-
____
|
-
____
|
Loss for the purposes of diluted loss per
share
|
(6,223)
____
|
|
(4,521)
____
|
(3,357)
____
|
|
|
|
|
|
Number of shares
|
|
|
|
|
Weighted average number of shares for the
purposes of basic loss per share
|
339,234,927
|
|
260,425,531
|
285,365,704
|
Effect of dilutive potential ordinary
shares:
|
|
|
|
|
Share options
|
-
____
|
|
-
____
|
-
____
|
Weighted average number of
ordinary shares for the purposes of diluted loss per share
|
339,234,927
____
|
|
260,425,531
____
|
285,365,704
____
|
8. Intangible
assets
In the period to 30 September 2007,
there were additions to intangible assets of £127,000 arising from a milestone
payment falling due on the outlicense of CoVaccine HT to Nobilon International BV. This
liability is to be settled by issue of a convertible loan note. The addition in the prior
interim period of £347,000 arose from the initial inlicense of the CoVaccine HT
adjuvant.
9. Property,
plant and equipment
In the period to 30 September 2007,
there were additions to property, plant and equipment of £1,648,000
(2006: £2,593,000).
10. Share
capital
The following shares were issued in the
current and prior interim periods:
|
Six months
to
30 September
2007
|
Six months to
30 September 2006
|
|
Shares
issued
|
Nominal
value
|
Consideration
|
Shares
Issued
|
Nominal value
|
Consideration
|
|
No.
|
£’000
|
£’000
|
No.
|
£’000
|
£’000
|
|
|
|
|
|
|
|
Allotted under share option
schemes
|
100,867
|
2
|
49
|
119,696
|
2
|
48
|
Conversion of convertible
loan notes
|
117,200
_____
|
2
_____
|
31
_____
|
1,136,393
_____
|
28
_____
|
527
_____
|
|
218,067
_____
|
4
_____
|
80
_____
|
1,256,089
_____
|
30
_____
|
575
_____
|
11. Acquisitions
and disposals
There were no acquisitions in the
current or prior interim periods.
|
12.
|
Commitments and
contingencies
|
The Group leases various buildings
under non-cancellable operating agreements with varying terms and renewal rights. The Group
also has various other non-cancellable operating lease arrangements.
|
13.
|
Related party
disclosures
|
Transactions between the Company and
its subsidiaries, which are related parties, have been eliminated on consolidation and are
therefore not disclosed in this note.
There were no material related party
transactions requiring disclosure in the period or the comparable prior period.
Copies of this statement are being sent
to all shareholders and will be available to the public at the Company's registered office
at The Heath Business and Technical Park, Runcorn, Cheshire, WA7 4QX.
Responsibility
Statement
We confirm that to the best of our
knowledge:
a) The
condensed set of financial statements has been prepared in accordance with IAS 34, Interim
Financial Reporting, as adopted by the European Union;
b) The
interim management report includes a fair review of the information required by the
Financial Statements Disclosure and Transparency Rules (DTR) 4.2.7R being an indication of
important events that have arisen during the first six months of the financial year and
their impact on the condensed financial statements and description of principal risks and
uncertainties for the remaining six months of the year; and
c) The
interim management report includes a fair review of the information required by DTR 4.2.8R
being disclosure of related party transactions and changes therein since the last financial
statements.
By order of the Board
Andrew Heath
|
Rolf Soderstrom
|
Chief Executive
Officer
|
Group Finance
Director
|
END