Final Results
March 04 2003 - 1:00AM
UK Regulatory
RNS Number:2238I
BioFocus PLC
04 March 2003
For immediate release 4 March 2003
BIOFOCUS PRELIMINARY RESULTS
BioFocus, the collaborative drug discovery company, has today announced its
preliminary results for the year ended 31 December 2002.
Highlights
* Turnover up 32.7% to #14.44m (2001: #10.88m)
* Operating profit before research and development expenditure rose by
27.7% to #3.30m
* Expenditure on research and development more than doubled to #1.58m
(2001: #0.71m)
* Profit before amortisation of goodwill on consolidation and tax rose
3% to #2.08m (2001: #2.02m). Included in profit for 2002 is an
exceptional gain of #0.52m arising on the early redemption of a loan
note.
* Basic earnings per share before amortisation of goodwill was 9.36p
(2001: 12.33p). Fully diluted earnings per share before amortisation
of goodwill was 9.34p (2001: 11.49p)
* Cash position remains strong with balances of #3.49m at 31st
December 2002 (2001: #2.68m)
* Client base expanded significantly:
- 46 clients purchased BioFocus libraries
- 19 clients worked with new biology division; 18 clients worked
with chemistry division
* Expanded global reach with four collaborations in Japan (now
accounts for 13.5% of turnover)
* Increased pipeline of downstream returns through collaborations with
Biovitrum, Amgen, Axxima and Teijin
* Management succession confirmed
Commenting on the results, Norman Burden, Chairman said:
'In spite of challenging market conditions, BioFocus has made substantial
progress, maintaining its reputation as a successful collaborator in drug
discovery. The company continues to attract the world's leading pharmaceutical
and biotech companies for collaborations in fields such as cancer research,
infective diseases and neurology. The Board is confident that the market for
the Company's products and services will continue to grow, albeit at a slower
pace than has been predicted in the past.'
For further information:
BioFocus 020 7638 9571 until 12.30pm
David Stone, Chief Executive
Stephen France, Finance Director
Citigate Dewe Rogerson 020 7638 9571
Sue Pemberton
Fiona Bradshaw
Chairman's Statement
I am pleased to present my report for the year ended 31st December 2002.
In a difficult trading climate, your company has made further substantial
progress. Turnover is up some 33% over the previous year, and operating profit
before research and development costs has increased from #2.58m to #3.30m.
Against this we have set a greatly increased level of expenditure on research
and development, up from #0.71m to #1.57m. This is of major significance to the
future of BioFocus, as it completes the transition from what started as a small
chemistry services operation to an integrated drug discovery company that works
with many of the world's leading pharmaceutical and biotechnology organisations
and has a growing portfolio of proprietary programmes and technologies.
The extent of this change is significant and beyond 2003 the Board expects to
see the benefits that will flow from our involvement in fields as diverse as
cancer research, infective diseases and neurology.
Financial Performance
Consolidated turnover has increased by 32.7% to #14.44m (2001: #10.88m).
Profit before amortisation of goodwill on consolidation and tax rose slightly to
#2.08m
(2001: #2.02m). Included in the profit for 2002 is an exceptional gain of
#0.52m which arose on the early redemption of the loan note due to a former
investor in Cambridge Drug Discovery Holdings Ltd.
However, expenditure on research and development increased significantly from
#0.71m in 2001 to #1.57m in line with the Company's stated objective to reinvest
a proportion of its income into longer term projects. Operating profit before
research and development expenditure rose by 27.7% to #3.30m from #2.58m,
showing a small decrease in operating margins from 23.7% to 22.7%.
Basic earnings per share before amortisation of goodwill was 9.36p (2001:
12.33p). Fully diluted earnings per share before amortisation of goodwill was
9.34p (2001: 11.49p).
Trading in the latter part of the year was more difficult than had been expected
as our clients cut back on their spending. The effect was noticeable in all
areas of our business where delays in negotiating collaborations or sales of
libraries combined with one or two instances of client projects being cancelled
altogether conspired to reduce our turnover below anticipated levels. As this
was mainly high margin business, there was a disproportionate effect on profits.
Nevertheless, the overall operating margin was maintained at a comparable
level to 2001.
Over the past six months, management has carried out a thorough review of
staffing levels and overhead costs and has taken steps to reduce costs across
all areas of the business. The benefits of this will come through in the
current year.
The Company's cash position remained strong, with balances of #3.49m at 31st
December 2002 (2001: #2.68m). Net current assets increased to #11.04m (2001:
#10.87m).
Research and Development
The Company has continued to focus its research and development investment in
the areas of kinases,G-protein coupled receptors and ion channels and is
building a significant intellectual property portfolio in these areas. During
the course of the year we have invested in new compound libraries directed
towards G-protein coupled receptors and kinases, and we have made significant
progress on our in-house projects.
BioFocus maintained its record of being a profitable company while investing
further in its own in-house research programmes and development of new
technologies. The Company has cemented its reputation as a high quality
collaborator with particular expertise in three wide areas of drug discovery;
kinases, G-protein coupled receptors and ion channels, and has entered into
exciting new collaborations, notably with Amgen Inc.
The collaboration with Amgen, which was signed near the end of the year, is the
latest example of the type of business that BioFocus can attract. As well as
receiving fees for service, BioFocus retains downstream benefits in the form of
development and commercial milestones. This is now the norm, meaning that the
Company has an interest in projects covering seventeen biological targets as
opposed to just a few a year ago.
In the year, we saw returns from these in-house programmes with the signing of
collaborations with Axxima and Amgen, among others. The Board sees this effort
as key to the long term success of BioFocus as it builds up a portfolio of
milestone and royalty bearing projects.
Management Succession
Over the last year or so David Stone and I have devoted considerable thought,
with the aid of our Board colleagues, to the question of management succession.
The first part of our plan was put into effect last November when Geoff McMillan
joined as Chief Operating Officer.
The transition will be completed at our forthcoming Annual General Meeting when
I shall retire from the Chairmanship after nearly five years in office. David
Stone will succeed me and Geoff McMillan will take over as Chief Executive
On 31st December 2002, Keith Moscrop retired from the Board. Keith was an
instrumental figure in the formation and growth of the Company and I am sure
that you will join me in thanking him for his tremendous commitment to BioFocus
for over six years.
Corporate Governance
The Company is currently undergoing its audit for accreditation for ISO 9001. I
would like to thank the management and staff for their efforts in establishing
the necessary systems.
Outlook
In spite of short term uncertainties, your Board is confident that the market
for its products and services will continue to grow, albeit at a slower pace
than has been predicted in the past.
I believe that BioFocus will continue to flourish as the downstream income from
its collaborations coupled with increasing fee income fuel further investment in
proprietary programmes.
Norman Burden (Chairman)
BioFocus plc
Audited Results for the year ended 31st December 2002.
Consolidated Profit and Loss Account Year Year
to 31.12.02 to
31.12.01
As restated
#'000's #'000's
Turnover 14,445 10,878
======= =======
Operating profit before research and
development costs and amortisation of
goodwill 3,302 2,585
Research and development costs (1,575) (714)
_______ _______
Operating profit before amortisation of 1,727 1,871
goodwill
Amortisation of goodwill (1,088) (604)
_______ _______
Operating profit 639 1,267
Interest receivable 68 204
Interest payable (239) (55)
Exceptional discount on early redemption of
loan note 525 -
_______ _______
Profit on ordinary activities before taxation 993 1,416
Taxation (560) (424)
_______ _______
Profit on ordinary activities after taxation 433 992
===== =====
Basic earnings per share 2.66p 7.66p
====== ======
Fully diluted earnings per share 2.66p 7.14p
====== ======
Basic earnings per share before amortisation
of goodwill 9.36p 12.33p
======= =======
Fully diluted earnings per share before
amortisation of goodwill 9.34p 11.49p
======= =======
Notes:
1. The results for the year ended 31 December 2001 are
extracted from the Company's statutory accounts, which will be sent to
shareholders in due course. The auditors have indicated that they intend to
give an unqualified report on these statutory accounts.
2. The comparative figures for 2001 have been restated to comply
with FRS 19 "Deferred Taxation". This is the first year that the Company has
been required to include a deferred tax asset reflecting the value of tax losses
available for carry forward as at the year end.
3 The group had no recognised gains or losses other than the
results shown above.
4 The basic earnings per share is calculated on the weighted
average number of shares in issue during each year. The fully diluted earnings
per share takes account of outstanding share options and the issue of bonus
shares to the Company's Founders.
BioFocus plc
Audited Results for the year ended 31st December 2002.
Consolidated Balance Sheet At At
31.12.02 31.12.01
#'000's #'000's
As restated
FIXED ASSETS
Intangible assets 20,083 21,109
Tangible fixed assets 5,059 3,986
Investments 300 -
_____ _____
25,442 25,095
_____ _____
CURRENT ASSETS
Stock and work in progress 2,181 1,009
Deferred tax asset 2,618 3,111
Debtors and prepayments 6,046 6,901
Cash at Bank and in Hand 3,486 2,679
________ ________
14,331 13,700
CREDITORS
Amounts falling due within one year (3,290) (2,831)
________ ________
Net Current Assets 11,041 10,869
________ ________
Total Assets less Current Liabilities 36,483 35,964
________ ________
CREDITORS
Amounts falling due after more than one year (1,371) (1,158)
Provisions for Liabilities and Charges (210) (340)
________ ________
(1,581) (1,498)
________ _______
NET ASSETS 34,902 34,466
======= =======
EQUITY CAPITAL AND RESERVES
Called-up Share Capital 4,065 4,062
Share Premium Account 29,232 29,232
Profit and Loss Account 1,605 1,172
________ ________
EQUITY SHAREHOLDERS' FUNDS 34,902 34,466
======= =======
BioFocus plc
Audited Results for the year ended 31st December 2002.
Consolidated Cash Flow Statement Year to Year to
31.12.02 31.12.01
#'000's #'000's
As restated
Net cash (outflow)/inflow from operating activities 2,094 (1,919)
_______ _______
Returns on investments and servicing of finance:
Interest received 68 204
Interest paid (19) -
Interest element of finance lease rental payments (220) (55)
_______ _______
(171) 149
_______ _______
Taxation:
Corporation tax received 113 -
Corporation tax paid (43) (23)
_______ _______
70 (23)
_______ _______
Capital Expenditure:
Payments to acquire intangible fixed assets (92) (16)
Payments to acquire tangible fixed assets (2,184) (1,120)
Receipts from sales of tangible fixed assets 61 -
Payments to acquire fixed asset investments (300) -
_______ _______
(2,515) (1,136)
_______ _______
Acquisitions:
Purchase of subsidiary undertakings - (774)
Net cash acquired with subsidiary undertakings - 2,893
_______ _______
- 2,119
_______ _______
Financing:
Issue of share capital 3 3
Repayment of loan notes (475) -
Proceeds of sale and lease back of tangible fixed 1,950 -
assets
Loan received 350 -
New hire purchase agreements 327 -
Capital element of finance lease rental payments (746) (447)
Loan repayments (25)
Hire purchase repayments (55)
_______ _______
1,329 (444)
_______ ______
Increase/(Decrease) in cash 807 (1,254)
====== ======
This information is provided by RNS
The company news service from the London Stock Exchange
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