TIDMBTG
RNS Number : 3815W
BTG PLC
14 November 2017
BTG plc: Interim Results
17% product sales growth, reiterating full year guidance
Continued delivery of Interventional Medicine growth
strategy
London, UK, 14 November 2017: BTG plc (LSE: BTG), a global
specialist healthcare company, today announces its interim results
for the half year ended 30 September 2017.
"We have delivered strong product sales growth in H1 and have
also made significant progress with activities that support
sustainable high growth in our Interventional Medicine business,"
commented Louise Makin, BTG's CEO. "We have built a scalable
platform, with a portfolio of differentiated products, strong
customer relationships and internal capabilities, with multiple
drivers of growth in our existing business. The use of minimally
invasive therapies continues to grow. We have the financial
resources and capabilities to continue to make targeted new
investments, so that we can expand our Interventional Medicine
business and deliver sustained growth in shareholder value."
Financial highlights
H1 2017/18 H1 2016/17 Growth Growth at CER(2) (%)
(GBPm) (GBPm) (%)
======================================== === =========== =========== ======= =====================
Revenue 341.3 285.4 20% 13%
Product sales 239.7 193.2 24% 17%
Adjusted operating profit(1) 99.1 78.8 26% 15%
IFRS operating profit 18.6 29.1 (36%)
Adjusted basic EPS(1) 21.0p 13.9p 51%
IFRS basic EPS 13.8p 3.4p >100%
Free cash flow(1) 75.2 55.7 35%
Net cash flow from operating activities 78.8 60.8 30%
============================================= =========== =========== ======= =====================
1. Certain financial measures in this press release, including
adjusted operating profit, adjusted basic EPS and free cash flow
are not prepared in accordance with IFRS. All adjusted financial
measures are explained on page 23 and are reconciled to the most
directly comparable measure prepared in accordance with IFRS on
pages 24 to 26.
2. Constant Exchange Rate ("CER") growth is computed by
restating H1 2017/18 results using H1 2016/17 foreign exchange
rates for the relevant period.
-- Product sales 17% higher at CER, driven by Interventional
Oncology, Interventional Vascular and Pharmaceuticals; reiterating
full year guidance
-- Strong growth in adjusted operating profit, up 15% at CER;
IFRS operating profit declined by 36% and was impacted by provision
of GBP53.5m following final court ruling in previously announced
Wellstat litigation
-- Adjusted basic EPS up 51%, benefitting from gains on foreign
exchange forward contracts compared with losses in H1 2016/17; IFRS
basic EPS benefits from credit of GBP26.5m from release of
contingent consideration liability for PneumRx(R) Coil regulatory
milestone
-- Continued strong cash generation, with free cash flow up 35%
Operational highlights
Interventional Medicine
Oncology
-- Patient enrolment completed in TheraSphere(R) STOP-HCC trial; data expected in 2019
-- MOTION and SOLSTICE studies exploring cryoablation for
treating bone and lung metastases fully enrolled and on track to
report data in 2018
-- Expanded collaboration with the Society of Interventional
Oncology, exploring the combination of locoregional therapies and
immuno-oncology agents
Vascular
-- Positive data reported in EKOS(R) OPTALYSE PE and ACCESS PTS studies
-- Acquisition of Roxwood Medical, a provider of advanced
specialty cardiovascular catheters, leveraging Interventional
Vascular US national hospital sales force
Early-stage products
-- PneumRx(R) Coil US regulatory review ongoing, approval anticipated in H2 2018 calendar year
-- Category I CPT codes finalised for Varithena(R) procedures in
the US, effective from January 2018
Pharmaceuticals
-- Education and awareness activities continue to support
optimum use and stocking of CroFab(R) and DigiFab(R) , and
continued growth of Voraxaze(R)
-- Vistogard(R) distribution agreement terminated; BTG to return
all rights to Wellstat Therapeutics Corporation
Licensing
-- Back-royalties of GBP11.0m received on Lemtrada(TM) ; good performance from Zytiga(R)
For further information contact:
BTG FTI Consulting
Andy Burrows, VP Corporate Ben Atwell / Simon Conway
& Investor Relations
+44 (0)20 7575 1741; Mobile:
+44 (0)7990 530 605 +44 (0)20 3727 1000
Stuart Hunt, Investor Relations
Manager
+44 (0)20 7575 1582; Mobile:
+44 (0)7815 778 536
Chris Sampson, Corporate
Communications Director
+44 (0)20 7575 1595; Mobile:
+44 (0)7773 251 178
About BTG
BTG is a global specialist healthcare company bringing to market
innovative products in specialist areas of medicine to better serve
doctors and their patients. We have a portfolio of Interventional
Medicine products to advance the treatment of cancer, severe
emphysema, severe blood clots and varicose veins, and
Pharmaceuticals that help patients overexposed to certain
medications or toxins. Inspired by patient and physician needs, BTG
is investing to expand its portfolio to address some of today's
most complex healthcare challenges. To learn more about BTG, please
visit: btgplc.com.
OPERATING REVIEW
The Group has delivered a very good financial performance in the
six months to 30 September 2017, reflecting strong growth in
product sales and higher than expected royalties. The Group has
also made significant progress in delivering on its Interventional
Medicine growth strategy.
Strategy
The Group's strategy is to establish leadership positions in
selected therapy areas where there are large patient populations
with unmet needs. BTG provides differentiated products and invests
both organically and through acquisitions in innovative technology,
clinical data and geographic expansion to deliver sustained growth
and to enable its specialist physician customers to treat more
patients.
There has been significant operational progress across BTG's
business in the first half of the year.
Interventional Medicine - high growth
Interventional Oncology
With several treatment modalities, continued strong positions in
growing markets and excellent customer relationships, BTG is a
leader in Interventional Oncology. Significant progress has been
made with the multiple activities that support the sustained high
growth of this business.
The TheraSphere(R) Phase III trials are progressing well, with
data expected in 2019. Enrolment of 526 patients with unresectable
hepatocellular carcinoma (HCC) was completed in the STOP-HCC trial,
and approximately two-thirds of patients with metastatic colorectal
cancer (mCRC) who have failed first-line chemotherapy have now been
enrolled in the EPOCH trial. Both trials are intended to support
Premarket Approvals (PMAs) of TheraSphere(R) in the US.
Personalised treatment of patients is a key theme in medicine.
BTG has partnered with Mirada, the medical imaging software
company, to develop advanced dosimetry software that enables
physicians to personalise TheraSphere(R) Y(90) treatment for every
patient.
Since acquiring Galil Medical in June 2016, integration of the
business has proceeded as planned. The MOTION and SOLSTICE studies,
using cryoablation for the palliation of bone metastases and for
treating pulmonary metastatic disease, are both fully enrolled and
on track to report data in 2018. BTG has invested in the Galil team
and created a centre of excellence in BTG for ablation. A range of
development programmes have been initiated, which have the
potential to deliver several new products over the next 12-24
months.
BTG expanded its collaboration with the Society of
Interventional Oncology to evaluate the combination of BTG's
locoregional therapies with immuno-oncology agents. The aim is to
improve scientific understanding of how locoregional treatment may
enhance the effects of immuno-oncology agents by de-bulking tumours
and releasing antigens that can stimulate a tumour-specific immune
response. BTG will award eight research grants in total.
Geographic expansion has continued, with regulatory approvals
and commencement of commercial activities in a number of
territories in Asia, EMEA and Latin America.
Interventional Vascular
The Interventional Vascular business now has a full US national
sales force of 60 people, and US hospital penetration has increased
to 80%. Expansion in other territories continues. In the EU, the
sales and medical presence in major markets has been strengthened
to support revenue growth and expand reimbursement, including in
Germany where a new small direct sales force is being
established.
The acquisition of Roxwood Medical in October 2017 leverages the
US EKOS(R) hospital sales force with a product that enables
physicians to conduct more procedures and help more patients, while
increasing BTG's per-visit revenue. Roxwood produces anchoring
catheters that help physicians to cross complex lesions and
arterial blockages, enabling further treatments. BTG will
transition Roxwood's products to direct sales during H2.
Use of the EKOS(R) catheter to treat pulmonary embolism (PE)
continues to increase, with future growth supported by recent data
from the OPTALYSE PE study. This showed that PE can be treated
effectively with EKOS(R) using lower doses of thrombolytic drug and
shorter treatment times than the standard protocol, which allows
for scheduling flexibility and efficiencies in clinician time and
drug costs. EKOS(R) is the only device cleared by the US Food and
Drug Administration (FDA) for use in treating PE.
Positive data were also reported from the ACCESS PTS study,
which found that patients with chronic deep vein thrombosis (DVT)
and post-thrombotic syndrome (PTS) can be treated safely and
effectively with a combination of EKOS(R) therapy and balloon
dilatation. As the only treatment regimen proven to significantly
reduce the signs and symptoms of PTS and show a significant
improvement in quality of life, over time this could provide
another new procedure for treating physicians.
Interventional Medicine - early stage
BTG's early-stage Interventional Medicine products are the
PneumRx(R) Coil, a treatment for severe emphysema, and Varithena(R)
, a treatment for varicose veins. Varithena(R) is considered as
separate to BTG's Interventional Vascular business because it is
sold through a separate sales force to physicians in private
clinics.
PneumRx(R) Coil
The PneumRx(R) Coil system has been shown in clinical studies to
improve lung function, exercise capacity and quality of life in
patients with severe emphysema. It is one of the first devices
available in the emerging medical field of Interventional
Pulmonology, and BTG is progressing a range of activities that
support the development of an Interventional Pulmonology
business.
The product has received a CE Mark in the EU and currently most
sales are in Germany. Activities to expand therapy adoption are
ongoing. These include providing physicians with practical tools to
select patients who are likely to respond well to treatment with
the coils, and education and market development activities to
ensure patient referrals from pulmonologists to interventional
pulmonologists. BTG also plans to generate additional clinical data
in a new study of patients with similar profiles to those who have
responded well to coil treatment in previous studies.
Work continues in the EU to extend reimbursement. The German
government review of reimbursement of treatments for severe
emphysema is expected to conclude in H2 2018. In France, the Coil
has been excluded from the add-on payment list but BTG intends to
appeal this decision and in parallel continues to explore
alternative reimbursement pathways.
In the US, where no devices are currently approved for treating
severe emphysema, a PMA has been submitted and is being reviewed by
the FDA. Current expectations are for potential approval and launch
in H2 of the 2018 calendar year.
Varithena(R)
Varithena(R) is BTG's comprehensive treatment for varicose
veins, which is approved in the US and is being sold by a dedicated
small sales force to private vein clinics. A broad range of
insurers have added Varithena(R) to their coverage policies since
launch, but the product has been reimbursed through interim codes
and adoption has been hampered by slow processing of claims and
variability in amounts paid to treating physicians.
Finalised category I CPT reimbursement codes have now been
assigned to Varithena(R) and will be effective from January 2018.
The new CPT codes define Medicare payment rates and enable
automatic and electronic processing of claims, providing physicians
in the US with further predictability of payment and streamlining
the reimbursement process. BTG believes that the new codes are
appropriate and have the potential to underpin the Company's
expectations for the product. However, it is likely to take until
the end of 2018 for the impact of the new codes on physician
adoption and insurer practices to be better understood.
Pharmaceuticals
BTG has renamed this business, as the former name, Specialty
Pharmaceuticals, has come to be associated with a different
business model to BTG's and a price-based approach to growth.
Physician education and awareness initiatives continue to drive
optimum use of BTG's antidotes. Severe weather in the US led to
strong demand for CroFab(R) in anticipation of increased
snakebites, and orders for the digoxin overdose antidote DigiFab(R)
benefitted in H1 from replacement of a number of expired batches in
US hospitals. Growth of the high-dose methotrexate antidote
Voraxaze(R) continues, as awareness of methotrexate toxicity and
treatment options increases.
The distribution agreement with Wellstat Therapeutics
Corporation relating to Vistogard(R) has been terminated following
receipt of the final court ruling in the previously disclosed
litigation with Wellstat. BTG will return all rights to
Vistogard(R) to Wellstat as soon as practicable, while continuing
to consider appeal options.
Licensing
Licensing is no longer an active strategy for BTG, but the Group
expects to continue to receive royalties from certain of its
previously licensed technologies for some years to come.
During the period BTG received its final revenue relating to
Lemtrada(TM) , Sanofi/Genzyme's treatment for multiple sclerosis.
There was good growth in royalties received from sales of Johnson
& Johnson's prostate cancer treatment, Zytiga(R) , following
positive data from two clinical studies that showed benefits in men
who were initiated on Zytiga(R) treatment alongside hormone therapy
rather than after hormone therapy stops being effective.
FINANCIAL REVIEW
This review includes financial metrics on both an IFRS and
adjusted basis. Information on the Group's adjusted financial
information is set out on pages 23 to 26.
Revenue
Product Sales were GBP239.7m (H1 2016/17: GBP193.2m), up 17% at
CER, with growth driven by Interventional Oncology, Interventional
Vascular and Pharmaceuticals. Interventional Medicine grew 15% at
CER, and Pharmaceuticals delivered a strong performance in the
period, up 20% at CER. At actual exchange rates product sales were
up 24%.
Revenues were GBP341.3m (H1 2016/17: GBP285.4m), up 13% at CER
and up 20% at actual exchange rates. Revenues in the period
benefited by GBP11.0m of Lemtrada(TM) back-royalties and a good
contribution from Zytiga(R) royalties.
H1 H1 Growth Growth
2017/18 2016/17 at CER
GBPm GBPm % %
===================================== ========= ========== ======= =========
Interventional Oncology 76.6 63.2 21 15
Interventional Vascular 35.4 28.4 25 18
Early-stage Interventional Medicine
PneumRx(R) 4.0 4.8 (17) (23)
Varithena(R) 2.8 1.7 65 57
Total Interventional Medicine 118.8 98.1 21 15
CroFab(R) 79.6 62.1 28 21
DigiFab(R) 27.0 21.8 24 18
Voraxaze(R) 12.2 9.5 28 23
Vistogard(R) /other 2.1 1.7 24 14
Total Pharmaceuticals 120.9 95.1 27 20
Total Product Sales 239.7 193.2 24 17
Zytiga(R) 71.0 65.8 8 3
Lemtrada(TM) 21.6 17.0 27 17
Other 9.0 9.4 (4) (10)
Total Licensing 101.6 92.2 10 4
Total Revenues 341.3 285.4 20 13
Interventional Medicine
Interventional Medicine revenues increased to GBP118.8m (H1
2016/17: GBP98.1m), up 15% at CER.
Interventional Oncology revenues were up 15% at CER to GBP76.6m
(H1 2016/17: GBP63.2m) driven by the continued expansion of
TheraSphere(R) and continued growth in the number of cryoablation
procedures.
Interventional Vascular revenues were GBP35.4m (H1 2016/17:
GBP28.4m), up 18% at CER. Growth from the EKOS(R) blood clot
treatment device was driven by increased penetration into US
hospitals and continued growth in treating PE.
Revenues of the PneumRx(R) Coil treatment for severe emphysema
were GBP4.0m (H1 2016/17: GBP4.8m), down 23% at CER due to a lower
number of procedures in Germany, the largest market. Resumption of
growth is anticipated when appropriate patient selection criteria
are established and as reimbursement coverage expands.
Sales of the varicose veins treatment Varithena(R) were GBP2.8m
(H1 2016/17: GBP1.7m), reflecting continued steady progress from
targeted marketing and market access initiatives ahead of new
reimbursement codes in the US from January 2018.
Pharmaceuticals
Pharmaceuticals revenues were GBP120.9m (H1 2016/17: GBP95.1m),
up 20% at CER.
Sales of CroFab(R) , the snakebite antivenin, were up 21% at CER
driven by volume growth and the benefit of single digit price
increases. The digoxin toxicity treatment DigiFab(R) delivered
strong first half growth, up 18% at CER. This growth is not
expected to be repeated in the second half with lower batch expiry
sales expected compared to the high number of batch expiries in H2
2016/17.
Sales of Voraxaze(R) , used for treating high-dose methotrexate
toxicity, were 23% higher at CER, and sales from Vistogard(R) were
GBP2.1m (H1 2016/17: GBP1.7m); BTG expects to report its final
revenue from Vistogard(R) in H2 as all rights will be transferred
back to Wellstat as soon as practicable.
Licensing
Licensing revenues were GBP101.6m (H1 2016/17: GBP92.2m), up 4%
at CER.
Royalties from Zytiga(R) (abiraterone acetate) were GBP71.0m (H1
2016/17: GBP65.8m), up 3% at CER, aided by a very strong
performance from Zytiga(R) in the last reported quarter.
Royalties from Lemtrada(TM) increased to GBP21.6m (H1 2016/17:
GBP17.0m) and include GBP11.0m of back-royalties received during
the period. Lemtrada(TM) royalties have now ceased.
Gross profit
Adjusted gross profit was GBP237.2m (H1 2016/17: GBP197.4m),
with an adjusted gross margin of 69%
(H1 2016/17: 69%).
Interventional Medicine adjusted gross margin remained constant
at 71% (H1 2016/17: 71%), reflecting the fixed manufacturing cost
base for the early-stage Varithena(R) and PneumRx(R) Coil products,
with improvement expected over time as revenues from these products
grow. Pharmaceuticals gross margin was 88% (H1 2016/17: 89%), and
Licensing gross margin remained constant at 46% (H1 2016/17:
46%).
On an IFRS basis, gross profit was GBP237.1m (H1 2016/17:
GBP196.7m), representing a gross margin of 69%
(H1 2016/17: 69%).
SG&A
Adjusted SG&A was up 8% at CER, with the increase reflecting
targeted commercial investment in Interventional Medicine, coupled
with continued effective cost management. Adjusted SG&A was
GBP93.2m (H1 2016/17: GBP82.4m), up 13% at actual exchange
rates.
On an IFRS basis SG&A was GBP152.2m (H1 2016/17: GBP110.4m)
and includes a charge of GBP53.5m in relation to the previously
disclosed litigation with Wellstat and intangible asset impairment
charges of GBP5.5m relating to the Vistogard(R) intangible asset.
SG&A in H1 2016/17 included a charge of GBP28.0m relating to
the settlement with the US government in relation to the Department
of Justice investigation into the historical marketing of LC
Bead(R) .
Research and development
R&D expenditure increased by 16% at CER, reflecting
increased investment primarily in Interventional Oncology
programmes, including the STOP-HCC and EPOCH TheraSphere(R) trials
as well as support for a number of ablation projects. Research and
development was up 22% to GBP46.1m (H1 2016/17: GBP37.8m) at actual
exchange rates.
Operating profit
On a CER basis, adjusted operating profit was up 15% reflecting
higher revenues and targeted investment in Interventional Medicine,
coupled with continued effective cost management. Adjusted
operating profit was GBP99.1m (H1 2016/17: GBP78.8m), up 26% at
actual exchange rates.
Adjusted operating margin increased to 29% (H1 2016/17: 28%).
IFRS operating margin was 5% (H1 2016/17: 10%).
On an IFRS basis, operating profit was GBP18.6m (H1 2016/17:
GBP29.1m), down 36% at actual exchange rates, and includes a
provision of GBP53.5m in respect of the litigation with Wellstat.
In H1 2016/17 IFRS operating profit included a charge of GBP28.0m
in respect of the settlement with the US government relating to the
historic marketing of LC Bead(R) .
Financial expense/income
Adjusted net financial income was GBP5.8m (H1 2016/17: net
financial expense of GBP17.7m).
Financial income in H1 2017/18 principally related to gains of
GBP6.6m on foreign exchange forward contracts, following the
strengthening of sterling in the period. Financial expense in H1
2016/17 related to foreign exchange forward contract losses of
GBP17.0m following the weakening of sterling in the first half of
last year.
IFRS net financial income was GBP28.6m (H1 2016/17: net
financial expense of GBP18.0m). In addition to foreign exchange
forward contract gains, IFRS net financial income in H1 2017/18
includes a net credit of GBP22.8m relating to the change in fair
value of contingent consideration liabilities (H1 2016/17: net
expense of GBP0.3m), principally due to a fair value credit of
GBP26.5m relating to the PneumRx(R) Coil regulatory approval
milestone.
The Group now considers that FDA approval of the PneumRx(R) Coil
will not be received before 31 December 2017. As a consequence, a
credit of GBP26.5m has been recognised relating to the contingent
consideration liability for the $60m milestone payment that would
be payable if FDA approval occurs before 31 December 2017.
Taxation
Adjusted effective tax rate was 23% (H1 2016/17: 13%). The
adjusted effective rate is above the standard rate of UK corporate
tax due to a significant portion of the Group's profit arising in
the US. The effect of the high US corporate tax rate is partly
offset by the patent box deduction on royalty income, the benefit
of US R&D tax credits and the recognition of deferred tax
assets for historical losses and timing differences.
On an IFRS basis, there is a tax credit of GBP5.7m (H1 2016/17:
GBP1.8m). The tax credit arises from expected tax relief for
litigation provisions and deferred tax credits relating to
amortisation on acquired intangible assets.
Earnings per share
Adjusted basic EPS was 21.0p (H1 2016/17: 13.9p), up 51% due to
higher adjusted profit after tax, before non-controlling interests,
of GBP81.2m (H1 2016/17: GBP53.4m). Adjusted profit after tax was
higher in H1 2017/18 due to growth in adjusted operating profit and
foreign exchange forward contract gains in H1 2017/18 compared to
losses in H1 2016/17.
IFRS basic EPS was 13.8p (H1 2016/17: 3.4p), due to higher IFRS
profit after tax and before non-controlling interests of GBP53.3m
(H1 2016/17: GBP12.9m). Lower IFRS operating profit was more than
offset by the favourable impact of gains of GBP6.6m on foreign
exchange forward contracts in H1 2017/18 compared to losses of
GBP17.0m in H1 2016/17, and a net credit of GBP22.8m from changes
in the fair value of contingent consideration liabilities.
Balance sheet
Non-current assets
Non-current assets decreased to GBP892.7m (31 March 2017:
GBP968.8m). Intangible assets decreased to GBP613.9m (31 March
2017: GBP678.9m) due to amortisation, the impairment of
Vistogard(R) and the impact of foreign exchange. Goodwill decreased
to GBP216.0m (31 March 2017: GBP225.6m) due to the impact of
foreign exchange.
Current assets
Current assets increased to GBP412.0m (31 March 2017:
GBP342.3m). Cash and cash equivalents were higher at GBP226.5m (31
March 2017: GBP155.5m) reflecting continued strong cash
generation.
Non-current liabilities
Non-current liabilities decreased to GBP137.6m (31 March 2017:
GBP165.7m) principally due to foreign exchange retranslation of
deferred tax liabilities.
Current liabilities
Current liabilities increased to GBP177.9m (31 March 2017:
GBP165.5m). Trade and other payables decreased to GBP117.5m (31
March 2017: GBP152.0m) principally due to a reduction in the fair
values of contingent consideration liabilities in relation to the
PneumRx acquisition. Derivative financial instrument liabilities
decreased to GBP1.1m (31 March 2017: GBP7.9m) due to changes in the
fair values of foreign exchange forward contracts in the
period.
These decreases were more than offset by an increase in
provisions, principally due to the recognition of a litigation
provision of GBP53.5m to cover the damages and estimated interest
plus costs at 30 September 2017 following the final court ruling in
respect of the previously announced litigation with Wellstat. BTG
is currently assessing appeal options.
Cash flow
The business continues to be highly cash generative. Free cash
flow was GBP75.2m (H1 2016/17: GBP55.7m), up 35%, as the business
converted strong growth in adjusted operating profit into cash.
On an IFRS basis, cash flow from operating activities was up 30%
to GBP78.8m (H1 2016/17: GBP60.8m).
Cash and cash equivalents were GBP226.5m at 30 September 2017
(31 March 2017: GBP155.5m). In October 2017, the Group acquired
Roxwood Medical for a cash payment of US$65m (subject to customary
closing adjustments).
On 7 November 2017, the Group re-financed its multi-currency
revolving credit facility ("RCF") which was otherwise due to expire
in November 2018. Following the re-financing, BTG has a GBP150m
multi-currency RCF, with an option to increase the RCF by a further
GBP150m. The RCF has a three-year term which expires in November
2020, although the Group has the option to extend the term of the
RCF for up to an additional two years. The RCF currently remains
undrawn.
SUMMARY AND OUTLOOK
BTG has delivered a very good financial performance in H1, with
strong growth in Interventional Medicine and Pharmaceuticals sales
and higher Licensing revenues than expected. Further growth is
expected in H2 in Interventional Medicine product sales driven by
continued growth in the Interventional Oncology and Interventional
Vascular portfolios. Pharmaceuticals revenues in H2 will reflect
the H1-weighted seasonality of CroFab(R) and fewer anticipated
expiry orders for DigiFab(R) compared with H2 2016/17.
BTG has built a scalable platform, with a broad portfolio of
differentiated products, strong commercial teams and customer
relationships, and innovation and development capabilities. Past
investments mean there are multiple drivers of growth in BTG's
existing business. As the use of minimally invasive therapies
increases, BTG has the financial resources and capabilities to
continue to make targeted new investments to expand its
Interventional Medicine business and deliver sustained growth in
shareholder value.
The Group's overall outlook for the full year to 31 March 2018
remains unchanged:
2017/18 CER guidance(1) Comment
-------------------- ------------------------- -----------------------------
Interventional mid-to-high teens H2 weighted
Medicine (%) growth
-------------------- ------------------------- -----------------------------
Pharmaceuticals low-to-mid single H1 weighted
digit (%) growth
-------------------- ------------------------- -----------------------------
Royalties single digit (%) Increased Zytiga(R)
decline royalties and Lemtrada(TM)
back-royalties
-------------------- ------------------------- -----------------------------
Gross margin within range 69% Higher Licensing
- 71% revenues / mix
-------------------- ------------------------- -----------------------------
Adjusted SG&A(2) mid-to-high single No change
and R&D digit (%) increase
-------------------- ------------------------- -----------------------------
Adjusted effective increasing to 22% No change
tax rate(2) - 26%
-------------------- ------------------------- -----------------------------
(1) The average USD/GBP rate for the year ended 31 March 2017
was $1.31
(2) Adjusted SG&A and Adjusted effective tax rate is not
prepared in accordance with IFRS. Further detail on the Group's
adjusted financial measures is included on pages 23 to 26.
Currency sensitivity
A further 5 cent change in USD/GBP rates (from the 30 September
2017 rate of $1.34) would result in an incremental hedging
gain/loss of GBP3m on current forward contracts in the second half
of 2017/18.
Change of reporting currency to USD
Starting with the 2018/19 financial year, BTG will change its
reporting currency to USD. This change is reflective of the
majority of the Group's revenues and a significant proportion of
its operating costs now being denominated in USD.
This change to report financial information in USD will take
effect from 1 April 2018. BTG will continue to report its current
financial year ending 31 March 2018 in GBP.
BTG will publish historical financial information, restated to
USD, in advance of the transition to assist investors and analysts
to prepare for the future change to a USD reporting currency.
CONDENSED CONSOLIDATED INCOME STATEMENT
for the six months ended 30 September
2017
Six months Six months
ended ended
30 September 30 September
2017 2016
Total Total
Note GBPm GBPm
--------------------------------------- ----- -------------- --------------
Revenue 2 341.3 285.4
Cost of sales (104.2) (88.7)
--------------------------------------- ----- -------------- --------------
Gross profit 2 237.1 196.7
Selling, general and administrative
expenses (152.2) (110.4)
Research and development (46.1) (37.8)
Other operating income 1.2 1.6
Amortisation of acquired intangible
assets (21.4) (19.9)
Acquisition and reorganisation
costs - (1.1)
--------------------------------------- ----- -------------- --------------
Operating profit 18.6 29.1
Financial income 3 38.0 0.1
Financial expense 3 (9.4) (18.1)
--------------------------------------- ----- -------------- --------------
Profit before tax 47.2 11.1
Tax credit 4 5.7 1.8
--------------------------------------- ----- -------------- --------------
Profit after tax 52.9 12.9
--------------------------------------- ----- -------------- --------------
Attributable to non-controlling (0.4) -
interests
Attributable to owners of the
parent 53.3 12.9
---------------------------------------------- -------------- --------------
Profit after tax 52.9 12.9
--------------------------------------- ----- -------------- --------------
Basic earnings per share 5 13.8p 3.4p
Diluted earnings per share 5 13.7p 3.3p
--------------------------------------- ----- -------------- --------------
All activities arose from continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 September
2017
Six months Six months
ended ended
30 September 30 September
2017 2016
Note GBPm GBPm
================================== ===== ============== ==============
Profit after tax 52.9 12.9
Other comprehensive
(loss) / income
Items that may be reclassified
subsequently to profit or loss
Foreign exchange translation
differences (48.3) 61.5
Items that will not be reclassified
subsequently to profit or loss
Actuarial loss on defined
benefit pension scheme 7 (0.1) (2.6)
Deferred tax on defined benefit
pension scheme asset - 0.9
Other comprehensive (loss)
/ income for the period (48.4) 59.8
=================================== ===== ============== ==============
Total comprehensive
income for the period 4.5 72.7
=================================== ===== ============== ==============
Attributable to non-controlling
interests (0.4) -
Attributable to owners
of the parent 4.9 72.7
----------------------------------- ----- -------------- --------------
Total comprehensive
income for the period 4.5 72.7
=================================== ===== ============== ==============
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 September 2017
30 September 31 March 30 September
2017 2017 2016
Note GBPm GBPm GBPm
============================== ===== ============= ========= =============
ASSETS
Non-current assets
Goodwill 6 216.0 225.6 220.1
Intangible assets 6 613.9 678.9 679.9
Property, plant and
equipment 38.1 40.1 40.8
Deferred tax assets 4.5 5.3 8.6
Employee benefits 7 18.6 17.2 18.2
Other non-current assets 1.6 1.7 1.6
892.7 968.8 969.2
============================== ===== ============= ========= =============
Current assets
Inventories 53.2 58.4 52.1
Trade and other receivables 128.2 125.7 121.4
Other current assets 4.1 2.7 1.6
Cash and cash equivalents 226.5 155.5 144.0
412.0 342.3 319.1
============================== ===== ============= ========= =============
Total assets 1,304.7 1,311.1 1,288.3
============================== ===== ============= ========= =============
EQUITY
Share capital 38.6 38.5 38.5
Share premium 437.2 435.4 435.2
Merger reserve 317.8 317.8 317.8
Other reserves 71.5 119.8 89.6
Retained earnings 124.1 68.4 44.9
------------------------------ ----- ------------- --------- -------------
Total equity 989.2 979.9 926.0
LIABILITIES
Non-current liabilities
Trade and other payables 4.8 8.5 33.7
Deferred tax liabilities 132.8 157.2 168.5
Derivative financial
instruments - - 1.8
137.6 165.7 204.0
============================== ===== ============= ========= =============
Current liabilities
Trade and other payables 117.5 152.0 144.5
Provisions 11 56.7 0.5 1.9
Derivative financial
instruments 1.1 7.9 8.5
Corporation tax payable 2.6 5.1 3.4
177.9 165.5 158.3
============================== ===== ============= ========= =============
Total liabilities 315.5 331.2 362.3
============================== ===== ============= ========= =============
Total equity and liabilities 1,304.7 1,311.1 1,288.3
============================== ===== ============= ========= =============
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 September 2017
Six months ended 30 September Six months ended 30 September
2017 2016
Note GBPm GBPm
============================================= ===== ============================== ==============================
Profit after tax for the period 52.9 12.9
Tax credit 4 (5.7) (1.8)
Financial income 3 (38.0) (0.1)
Financial expense 3 9.4 18.1
Operating profit 18.6 29.1
Adjustments for:
Profit on disposal of property, plant and
equipment and
intangible assets - (0.9)
Amortisation and impairments of
intangible assets 28.9 22.0
Depreciation on property, plant and
equipment 4.4 3.7
Share-based payments 3.2 5.0
Pension scheme funding 7 (1.4) (1.4)
Fair value adjustments 0.1 0.7
Cash flows from operations before movements
in working capital 53.8 58.2
Decrease/(increase) in inventories 3.4 (2.2)
Increase in trade and other receivables (8.3) (11.1)
(Decrease)/increase in trade and other
payables (15.9) 29.3
Increase in provisions 55.5 0.4
Cash generated from operations 88.5 74.6
Settlement of foreign exchange forward
contracts (2.2) (6.5)
Taxation paid (7.5) (7.3)
============================================= ===== ============================== ==============================
Net cash inflow from operating activities 78.8 60.8
============================================= ===== ============================== ==============================
Cash flows from investing activities
Purchases of intangible assets (0.5) (0.2)
Purchases of property, plant and equipment (3.1) (4.9)
Acquisition of businesses, net of cash
acquired 8 (1.7) (36.4)
Net cash outflow from investing activities (5.3) (41.5)
============================================= ===== ============================== ==============================
Cash flows from financing activities
Repayment of debt acquired with Galil
Medical - (18.9)
Proceeds from issue of shares 1.9 0.6
Other financing activities (0.7) (1.1)
============================================= ===== ============================== ==============================
Net cash inflow/(outflow) from financing
activities 1.2 (19.4)
============================================= ===== ============================== ==============================
Increase / (decrease) in cash and cash equivalents 74.7 (0.1)
Cash and cash equivalents at start of period 155.5 140.4
Effect of exchange rate fluctuations on cash held (3.7) 3.7
==================================================== ============================== ==============================
Cash and cash equivalents at end of period 226.5 144.0
==================================================== ============================== ==============================
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2017
Share Share Merger Other Retained Total Attributable to Total
capital premium reserve reserves earnings attributable non-controlling equity
to owners of interests
the parent
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ========= ========= ======== ========= ========= ============= ================ =========
At 1 April 2017 38.5 435.4 317.8 119.8 68.4 979.9 - 979.9
Profit for the
period - - - - 53.3 53.3 (0.4) 52.9
Other
comprehensive
loss - - - (48.3) (0.1) (48.4) - (48.4)
================ ========= ========= ======== ========= ========= ============= ================ =========
Total
comprehensive
(loss)/income
for the period - - - (48.3) 53.2 4.9 (0.4) 4.5
Transactions
with owners:
Issue of
ordinary
shares 0.1 1.8 - - - 1.9 - 1.9
Arising on
business
combinations - - - - - - 0.4 0.4
Movement in
shares held by
the Employee
Share
Ownership
Trust - - - - (0.7) (0.7) - (0.7)
Share-based
payments - - - - 3.2 3.2 - 3.2
================ ========= ========= ======== ========= ========= ============= ================ =========
At 30 September
2017 38.6 437.2 317.8 71.5 124.1 989.2 - 989.2
================ ========= ========= ======== ========= ========= ============= ================ =========
Share capital Share premium Merger reserve Other reserves Retained Total equity
earnings
GBPm GBPm GBPm GBPm GBPm GBPm
================ ============== ============== =============== =============== ================ =============
At 1 April 2016 38.3 434.8 317.8 28.1 28.7 847.7
Profit for the
period - - - - 12.9 12.9
Other
comprehensive
income/(loss) - - - 61.5 (1.7) 59.8
================= ============== ============== =============== =============== ================ =============
Total
comprehensive
income for the
period - - - 61.5 11.2 72.7
Transactions
with owners:
Issue of
ordinary shares 0.2 0.4 - - - 0.6
Share-based
payments - - - - 5.0 5.0
================= ============== ============== =============== =============== ================ =============
At 30 September
2016 38.5 435.2 317.8 89.6 44.9 926.0
================= ============== ============== =============== =============== ================ =============
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. Basis of preparation
Statement of compliance
These condensed consolidated interim financial statements have
been prepared in accordance with IAS 34 Interim Financial
Reporting. They do not contain all of the information which
International Financial Reporting Standards ("IFRS") would require
for a complete set of annual financial statements, and should be
read in conjunction with the consolidated financial statements of
the Group for the year ended 31 March 2017.
These condensed unaudited consolidated interim financial
statements were approved by the Board of Directors on
13 November 2017.
Comparative financial information
The comparative figures for the financial year ended 31 March
2017 do not constitute the Group's statutory accounts for that
financial year. Statutory accounts for the year ended 31 March
2017, prepared in accordance with International Financial Reporting
Standards as adopted by the EU ("Adopted IFRSs") and as issued by
the International Accounting Standards Board, have been reported on
by the Group's auditor and delivered to the Registrar of Companies.
The report of the auditor was (i) unqualified, (ii) did not include
a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
Accounting policies
The accounting policies applied by the Group in these condensed
consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements for
the year ended 31 March 2017.
No standard and interpretations recently adopted by the EU have
a significant impact on the Group.
IFRS 15 'Revenue from contracts with customers', was issued by
the IASB in May 2014 and will be implemented by the Group from 1
April 2018. The Standard contains a new set of principles on when
and how to recognise and measure revenue as well as new
requirements related to disclosures. The new standard replaces IAS
18 Revenues and related interpretations. The Group does not
anticipate that the new standard will have a material effect on the
Group's consolidated financial statements.
IFRS 9 'Financial instruments' was issued by the IASB in July
2014, and will be implemented by the Group from 1 April 2018. The
Group is currently assessing the impact of IFRS 9 on the Group's
consolidated financial statements.
IFRS 16 'Leases' was issued by the IASB in January 2016, and
will be implemented by the Group from 1 April 2019. The Group is
currently assessing the impact of IFRS 16 on the Group's
consolidated financial statements.
IFRIC 23 'Uncertainty over income tax treatments' was issued by
the IASB in July 2017 and will be implemented by the Group from 1
April 2019. The Group is currently assessing the impact of IFRIC 23
on the Group's consolidated financial statements.
Going concern and liquidity
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the next 12 months. Accordingly, they
continue to adopt the going concern basis in preparing these
Interim Financial Statements.
This conclusion has been reached having considered the effect of
liquidity risk on the Group's ability to operate effectively.
Currently, liquidity risk is not considered a significant business
risk to the Group given its level of net cash and cash equivalents
and cash flow projections. The Group does not currently require
significant levels of debt financing to operate its business. The
key liquidity risks faced by the Group are considered to be the
failure of banks where funds are deposited and the failure of key
licensees, distribution partners, wholesalers or insurers.
In addition to the liquidity risk considered above, the
Directors have also considered the following factors when reaching
the conclusion to continue to adopt the going concern basis:
-- A significant proportion of the Group's sales are from
products which are life-saving in nature, providing some protection
against an uncertain economic outlook;
-- The Group's principal licensees are global industry leaders in their respective fields; and
-- On 7 November 2017, the Group re-financed its multi-currency
revolving credit facility ("RCF") which was otherwise due to expire
in November 2018. Following the re-financing, BTG has a GBP150m
multi-currency RCF, with an option to increase the RCF by a further
GBP150m. The RCF has a three-year term which expires in November
2020, although the Group has the option to extend the term of the
RCF for up to an additional two years. The RCF currently remains
undrawn.
Seasonality of the business
Revenues from the Group's marketed products are dependent on
both the timing of shipments of product to the Group's distributors
and the underlying demand for the products. CroFab(R) , in
particular, demonstrates seasonality since the main snakebite
season in the US, when the product is in highest demand, runs from
March to October.
2. Operating segments
Operating segments are reported based on the financial
information provided to the Group's chief operating decision-making
body, being the Leadership Team. The Group is aligned behind three
reportable segments, being Interventional Medicine, Pharmaceuticals
and Licensing.
In assessing performance and making resource allocation
decisions, the Leadership Team reviews contribution by segment.
Contribution is defined as being gross profit less directly
attributable selling, general and administrative costs (SG&A).
The Licensing operating segment includes SG&A relating to the
Group's centrally managed support functions and corporate
overheads. These reportable segments reflect the management
structure and stewardship of the business. No allocation of central
overheads is made across the Pharmaceuticals or Interventional
Medicine reportable segments. Research and development continues to
be managed on a global basis, with investment decisions being made
by the Leadership Team as a whole. Research & Development is
not managed by reference to the Group's reportable segments, though
each programme within the pipeline would ultimately provide
revenues for one of the reportable segments if successful.
Six months ended 30 September
2017
Interventional Pharmaceuticals
Medicine Licensing Total
GBPm GBPm GBPm GBPm
=========================================================================== ================ ============ ========
Revenue 118.8 120.9 101.6 341.3
Cost of Sales(1) (35.0) (14.5) (54.7) (104.2)
================= ========================================================= ================ ============ ========
Gross Profit 83.8 106.4 46.9 237.1
Selling, general
and
administrative
expenses(2) (63.2) (75.9) (13.1) (152.2)
================= ========================================================= ================ ============ ========
Contribution 20.6 30.5 33.8 84.9
================= ========================================================= ================ ============ ========
Research and
development (46.1)
Other operating
income 1.2
Amortisation of
acquired
intangible
assets (21.4)
Operating profit 18.6
Financial income 38.0
Financial
expense (9.4)
================= ========================================================= ================ ============ ========
Profit before
tax 47.2
Tax credit 5.7
================= ========================================================= ================ ============ ========
Profit after tax 52.9
Unallocated
assets(3) 1,088.7
================= ========================================================= ================ ============ ========
(1) 2017 cost of sales within the Interventional Medicine
segment includes a GBP0.1m release of a fair value adjustment to
PP&E acquired with Galil Medical in June 2016. The release
represents incremental depreciation related to acquired
PP&E.
(2) 2017 selling, general and administrative expenses within
Pharmaceuticals includes a charge of GBP53.5m reflecting amounts
provided in respect of the litigation with Wellstat and an
impairment charge of GBP5.5m relating to the Vistogard(R)
intangible asset.
(3) The Group does not allocate assets to operating segments,
with the exception of goodwill (see note 6).
Six months ended 30 September
2016
Interventional Pharmaceuticals
Medicine Licensing Total
GBPm GBPm GBPm GBPm
================================ =============== ================ ============ ========
Revenue 98.1 95.1 92.2 285.4
Cost of Sales(1) (28.4) (10.7) (49.6) (88.7)
================================ =============== ================ ============ ========
Gross Profit 69.7 84.4 42.6 196.7
Selling, general and
administrative expenses(2) (53.4) (13.6) (43.4) (110.4)
================================ =============== ================ ============ ========
Contribution 16.3 70.8 (0.8) 86.3
================================ =============== ================ ============ ========
Research and development (37.8)
Other operating income 1.6
Amortisation of acquired
intangible assets (19.9)
Acquisition and reorganisation
costs (1.1)
================================ =============== ================ ============ ========
Operating profit 29.1
Financial income 0.1
Financial expense (18.1)
================================ =============== ================ ============ ========
Profit before tax 11.1
Tax credit 1.8
================================ =============== ================ ============ ========
Profit for the period 12.9
Unallocated assets(3) 1,068.2
================================ =============== ================ ============ ========
(1) 2016 cost of sales within the Interventional Medicine
segment includes a GBP0.7m release of a fair value adjustment to
inventory and PP&E acquired with Galil Medical in June 2016.
The release represents the reversal of a fair value uplift applied
to inventory purchased on acquisition which is recognised through
the income statement when inventory is sold, and incremental
depreciation related to acquired PP&E.
(2) 2016 selling, general and administrative expenses within
Licensing includes a charge of GBP28.0m relating to the Group's
settlement with the US government in relation to the Department of
Justice investigation into the historic marketing of LC Bead(R)
.
(3) The Group does not allocate assets to operating segments,
with the exception of goodwill (see note 6).
Revenue analysis
An analysis of revenue, based on the geographical location of
customers and the source of revenue is provided below:
Geographical analysis Six months Six months
ended ended
30 September 30 September
2017 2016
GBPm GBPm
======================= ============== ==============
USA 312.4 258.8
Europe 21.9 19.2
Other regions 7.0 7.4
======================= ============== ==============
341.3 285.4
======================= ============== ==============
Revenue from major products and Six months Six months
services ended ended
30 September 30 September
2017 2016
GBPm GBPm
================================= ============== ==============
Product sales 239.7 193.2
Royalties 101.6 92.2
341.3 285.4
================================= ============== ==============
Major customers
The Group's marketed products are sold both directly and through
distribution agreements in the USA, Europe, Asia Pacific and other
regions. No individual customer generated income in excess of 10%
of Group revenue in either period.
Products that utilise the Group's Intellectual Property Rights
are sold by licensees. Royalty income is derived from over 40
licences. One licence individually generated royalty income in
excess of 10% of Group revenue of GBP71.0m (H1 16/17: one licence
individually generated GBP65.8m).
3. Financial income and expense
Six months Six months
ended ended
30 September 30 September
2017 2016
Note GBPm GBPm
==================================== ===== ============== ==============
Fair value movements and realised
gains on foreign exchange
forward contracts 11.4 -
Interest receivable on money
market and bank deposits 0.1 0.1
Fair value movements on contingent
consideration liabilities 9 26.5 -
Financial income 38.0 0.1
==================================== ===== ============== ==============
Fair value movements and realised
losses on foreign exchange
forward contracts 4.8 17.0
Fair value movements on contingent
consideration liabilities 9 3.7 0.3
Other financial expense 0.9 0.8
Financial expense 9.4 18.1
==================================== ===== ============== ==============
The contingent consideration liabilities payable in relation to
the Galil and PneumRx acquisitions have been re-measured at fair
value at 30 September 2017, with gains on re-measurement recorded
within Financial income and losses recorded within Financial
expense. See Note 9 for further details.
4. Tax
Six months Six months
ended ended
30 September 30 September
2017 2016
GBPm GBPm
================================= ============== ==============
Current tax
Current tax charge 5.0 5.0
Deferred tax
Decrease in net deferred tax
liability (11.5) (4.9)
Decrease / (increase) in net
deferred tax asset 0.8 (1.9)
================================= ============== ==============
Total tax credit for the period (5.7) (1.8)
================================= ============== ==============
Tax for each six-month period has been provided on the basis of
the anticipated tax charge for the full year. The current tax
charge of GBP5.0m (H1 2016/17: GBP5.0m) principally relates to UK
and US taxes.
The deferred tax credit of GBP10.7m (H1 16/17: GBP6.8m credit)
principally reflects the release of deferred tax liabilities
recognised on acquired intangible assets as these assets are
amortised or impaired (GBP6.9m), the initial recognition of
deferred tax assets (GBP2.9m) and other timing differences partly
offset by use of recognised tax losses (GBP0.9m). Previously
unrecognised tax losses of GBP7.0m (gross) are expected to be
recognised in the year, due to the expectation that there will be
sufficient taxable profits in the future against which these losses
can be utilised.
5. Earnings per share
The calculation of basic and diluted earnings per share is
determined as follows:
Six months Six months
ended ended
30 September 30 September
2017 2016
==================================== ============== ==============
Profit for the period attributable
to the parent (GBPm) 53.3 12.9
Earnings per share (p)
Basic 13.8 3.4
Diluted 13.7 3.3
==================================== ============== ==============
Number of shares (m)
Weighted average number of shares
- basic 385.8 383.8
Effect of share options in issue 2.9 5.7
==================================== ============== ==============
Weighted average number of shares
- diluted 388.7 389.5
==================================== ============== ==============
For the calculation of adjusted basic and diluted earnings per
share see page 25 and 26.
6. Goodwill and other intangible assets
a) Goodwill
Goodwill at 30 September 2017 is GBP216.0m (31 March 2017:
GBP225.6m; 30 September 2016: GBP220.1m). The movement in the
current period principally relates to foreign exchange
movements.
The carrying value of goodwill has been allocated to
Interventional Medicine GBP179.5m (31 March 2017: GBP189.1m; 30
September 2016: GBP183.6m), to Pharmaceuticals GBP16.4m (31 March
2017: GBP16.4m; 30 September 2016: GBP16.4m) and to Licensing
GBP20.1m (31 March 2017: GBP20.1m; 30 September 2016:
GBP20.1m).
b) Other intangible assets
The net book value of other intangible assets at 30 September
2017 is GBP613.9m (31 March 2017: GBP678.9m; 30 September 2016:
GBP679.9m). The decrease in the carrying value of intangible assets
between 31 March 2017 and 30 September 2017 relates to foreign
exchange retranslation of those assets denominated in foreign
currencies, amortisation of finite-lived intangible assets and
impairment charges.
An impairment charge of GBP5.5m was recorded within SG&A in
the period to 30 September 2017 (H1 16/17: GBPnil). As a result of
the court ruling in the litigation with Wellstat, the Group is
required to return the US distribution rights for Vistogard(R) to
Wellstat after a transition period. Accordingly the Vistogard(R)
intangible asset was determined to be fully impaired.
7. Defined benefit pension fund
The Group has recognised a net defined benefit asset of GBP18.6m
on the Group's balance sheet in accordance with IAS19 - Employee
benefits in relation to the BTG Pension Fund (31 March 2017: asset
of GBP17.2m; 30 September 2016: asset of GBP18.2m). The GBP1.4m
increase since 31 March 2017 relates principally to an increase in
the discount rate used to value the obligation and the impact of
deficit repair payments, partially offset by lower than expected
investment returns. Actuarial gains/losses are recognised in the
condensed consolidated statement of comprehensive income.
In November 2016, the Group finalised the triennial actuarial
valuation of the BTG Pension Fund as at 31 March 2016. The
valuation showed a deficit of GBP4.6m and the Group committed to
deficit repair payments of GBP5.2m in aggregate over the period to
31 October 2018. In the period to 30 September 2017, deficit repair
payments of GBP1.2m (H1 16/17: GBP1.2m) have been made.
8. Business Combinations
Galil Medical acquisition
On 15 June 2016 BTG completed the acquisition of 100% of Galil
Medical. The fair value of the consideration paid totalled
GBP39.1m, representing up-front cash consideration of GBP37.5m and
the fair value of contingent consideration of GBP1.6m.
The fair value of acquired assets and assumed liabilities was
finalised in the period to 30 September 2017. No adjustments have
been made to the preliminary fair values presented in the Annual
Report and Accounts for the year ended 31 March 2017.
OncoVerse LLC ('OncoVerse') acquisition
On 20 April 2017, BTG acquired a 55% equity stake in OncoVerse,
a US company, for cash consideration of GBP1.9m ($2.5m). OncoVerse
is developing a digital health platform designed to allow cancer
patients' care teams to collaborate and allow clinicians across all
disciplines to work together to determine the most effective
treatment plan for their patients.
OncoVerse's results of operations have been consolidated from 20
April 2017, with that portion attributable to the 45% of OncoVerse
equity not owned by BTG recorded within "Non-controlling
interests". The impact of OncoVerse on the Group's income statement
is immaterial. The fair values of assets acquired and liabilities
assumed have also been determined as of 20 April 2017. The final
determination of these fair values will be completed as soon as
possible but no later than one year from the date of
acquisition.
Consolidation of Vetex Medical Limited ('Vetex')
On 17 July 2017 BTG provided Vetex, a development-stage medical
device company based in Ireland, with GBP2.0m ($2.7m) cash in
exchange for a convertible loan note and a call option over 100% of
Vetex's share capital.
As a result of these transactions, it is deemed that BTG has the
current ability (irrespective of intent) to exercise power over
Vetex's primary value generating activities. Accordingly, the
results of Vetex have been consolidated from 17 July 2017, with
that portion attributable to the 100% of Vetex equity not owned by
BTG recorded within "Non-controlling interests". The impact of
Vetex on the Group's income statement is immaterial. The fair
values of assets acquired and liabilities assumed have also been
determined as of 17 July 2017. The final determination of these
fair values will be completed as soon as possible but no later than
one year from the date of acquisition.
9. Financial instruments and fair value measurements
Recurring fair value measurements
Financial instruments are classified into Level 1, Level 2 and
Level 3 financial instruments. The different levels are defined as
follows:
Level 1 - quoted prices in active markets for identical assets
and liabilities
Level 2 - observable inputs other than quoted prices in active
markets for identical assets and liabilities
Level 3 - unobservable inputs
The Group's Level 1 and Level 2 financial instruments comprise
cash and deposits, foreign exchange forward contracts, and various
items such as trade receivables and payables which arise directly
from operations.
The carrying amount of the Group's Level 1 and Level 2 financial
instruments is a reasonable approximation of their fair value.
There have been no transfers between the levels of financial
instruments in the period.
The Group's Level 3 financial instruments predominantly
represent:
-- the contingent consideration payable on achievement of
revenue targets and product approval relating to PneumRx following
the acquisition of PneumRx, Inc. in January 2015; and
-- the contingent consideration payable on achievement of
revenue targets and product approval relating to Galil Medical
following the acquisition of Galil Medical in June 2016.
The movement in the Level 3 financial liabilities is shown
below:
2017 2016
GBPm GBPm
================================ ======= =======
At 1 April (32.1) (27.2)
Acquisitions - (1.6)
Change in fair value 22.8 (0.3)
Foreign exchange retranslation 1.8 (2.7)
At 30 September (7.5) (31.8)
================================ ======= =======
In the period to 30 September 2017, the Group recognised a fair
value credit of GBP26.5m relating to the PneumRx(R) US regulatory
approval milestone. This $60m regulatory milestone would be payable
if the PneumRx(R) Coils product is approved by the FDA no later
than 31 December 2017. The Group has recognised a credit of
GBP26.5m, fully releasing the related contingent consideration
liability, as the Group now considers that any FDA approval will
not be received before 31 December 2017.
In addition the Group recognised a fair value charge of GBP3.7m
within 'Financial expense' related to contingent consideration
payable pursuant to the Galil acquisition, reflecting increased
confidence in achieving certain regulatory milestones within the
relevant milestone earn-out periods.
10. Related parties
Giles Kerr, a non-executive director of BTG plc, is also the
Director of Finance for Oxford University and a director of Oxford
University Innovation Limited, a wholly-owned subsidiary of Oxford
University. Wholly-owned subsidiaries of BTG plc entered into
revenue sharing agreements with these organisations prior to Giles
Kerr joining the BTG Board. The BTG Group has licensed the
intellectual property covered by these agreements to third party
companies that are developing and/or selling the licensed products.
Under these licence agreements, BTG is entitled to receive
milestone payments and/or a royalty on sales of the products made
by the third party licensees. Payments made by BTG to Oxford
University and Oxford University Innovation Limited under the
relevant licence agreements were GBP10,000 in the period ended 30
September 2017 (H1 16/17: GBP9,000) and there were no amounts
outstanding and payable at 30 September 2017 (H1 16/17:
GBPnil).
11. Provisions
On 19 September 2017 a Memorandum Opinion was issued by the
Court of Chancery of Delaware ruling against BTG in its previously
announced litigation with Wellstat Therapeutics Corporation
concerning the commercialisation of Vistogard(R) . The Court found
that BTG has breached the distribution agreement and that Wellstat
is entitled to damages plus interest and costs. On 2 November 2017
the Court issued a Final Order and Judgment consistent with the
initial September ruling, and requiring that BTG return the US
distribution rights for Vistogard(R) to Wellstat after a transition
period. In the period to 30 September 2017, BTG has recorded a
provision for GBP53.5m expensed within SG&A, with the amount of
this provision based on the damages awarded and pre- and
post-judgment interest calculated pursuant to the Final Order.
BTG is currently considering its options in relation to this
Final Order and Judgement, which include an appeal.
12. Subsequent events
On 5 October 2017 BTG announced the acquisition of 100% of the
share capital of Roxwood Medical, Inc., an innovative provider of
advanced cardiovascular specialty catheters used in the treatment
of patients with severe coronary and peripheral artery disease. The
acquisition continues to build BTG's strength in the interventional
vascular space, further expanding BTG's portfolio of differentiated
minimally invasive vascular technologies.
BTG will pay up to US$80m in cash consideration to acquire
Roxwood, comprising US$65m paid on closing (subject to customary
closing adjustments) and up to an additional US$15m contingent upon
achievement of future commercial milestones.
The initial accounting for this acquisition, including the fair
valuation of contingent consideration payable and assets acquired,
is in progress. Further disclosures will be provided in BTG's 2018
Annual Report and Accounts.
13. Principal risks and uncertainties
We have considered the principal risks and uncertainties faced
by the Group for the remaining six months of the year and do not
consider them to have changed from those set out on pages 68 to 70
of the BTG plc 2017 Annual Report and Accounts, available from the
Group's website at www.btgplc.com. These include but are not
limited to: market access; securing adequate reimbursement for
BTG's products; obtaining/ maintaining product regulatory
approvals; IP/Legal challenges; competition; healthcare law
compliance; and supply chain/continuity of supply.
Responsibility statement of the directors in respect of the
interim financial report
The directors confirm that this set of interim condensed
financial statements has been prepared in accordance with IAS 34
'Interim Financial Reporting' as adopted by the European Union and
that the interim management report includes a fair review of the
information required by DRT 4.2.7R and DRT 4.2.8R, namely:
-- An indication of important events that have occurred during
the period and their impact on the condensed statements; and a
description of the principal risks and uncertainties for the
remaining six months of the year; and
-- Related party transactions that have taken place in the first
six months of the current fiscal year and that have materially
affected the financial position or performance of the entity during
the period; and any changes in related party transactions described
in the last annual report that could do so.
The directors of BTG plc were listed in the BTG plc Annual
Report for the year ended 31 March 2017. There have been no changes
in the period.
The Board
The Board of Directors that served during the six-month period
to 30 September 2017 and their respective responsibilities can be
found on the company website, www.btgplc.com.
By order of the Board
Dr Louise Makin Chief Executive Officer
Rolf Soderstrom Chief Financial Officer
13 November 2017
Independent Review Report to BTG plc
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2017 which comprises the Group's
condensed consolidated income statement, condensed consolidated
statement of comprehensive income, condensed consolidated statement
of financial position, condensed consolidated statement of cash
flows and the condensed consolidated statement of changes in equity
and the related explanatory notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2017 is not prepared, in all material respects, in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU and the Disclosure Guidance and Transparency Rules ("the
DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the
half-yearly financial report and consider whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards as adopted by the EU. The directors are
responsible for preparing the condensed set of financial statements
included in the half-yearly financial report in accordance with IAS
34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Richard Broadbelt
For and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London E14 5GL
13 November 2017
Shareholder information
Financial calendar
Announcement of annual results May 2018
for year ending 31 March 2018
Link share dealing services
A quick and easy share dealing service is available from Link
Asset Services, to either buy or sell more shares. An online and
telephone dealing facility is available providing shareholders with
an easy-to-access and simple-to-use service. For further
information on this service, or to buy and sell shares, please
contact: www.linksharedeal.com (online dealing) or +44 (0) 371 664
0445 (telephone dealing) - calls are charged at the standard
geographic rate and will vary by provider, lines are open 8am -
4.30pm Monday - Friday. Full terms, conditions and risks apply and
are available on request or by visiting www.linksharedeal.com.
This is not a recommendation to buy or sell shares. The price of
shares can go down as well as up, and you are not guaranteed to get
back the amount that you originally invested.
Shareholder change of address
The Company offers the facility, in conjunction with Link Asset
Services, our Registrars, to conduct a number of routine matters
via the web including the ability to notify any change of address.
If you are a shareholder and are either unable or would prefer not
to use this facility, please do not send the notification to the
Company's registered office. Please write direct to Link Asset
Services, at their address shown below, where the register is
held.
Relating to beneficial owners of shares with 'information
rights'
Please note that beneficial owners of shares who have been
nominated by the registered holder of those shares to receive
information rights under section 146 of the Companies Act 2006 are
required to direct all communications to the registered holder of
their shares rather than to the Company's registrar, Link Asset
Services, or to the Company directly.
Addresses for correspondence
Registered office Registrars
and head office
BTG plc Link Asset Services
5 Fleet Place The Registry
London 34 Beckenham Road
EC4M 7RD Beckenham
Tel: +44 (0)20 7575 Kent
0000 BR2 4TU
Fax: +44 (0)20 7575
0010 Tel (callers from the UK)
Email: info@btgplc.com 0871 664 0300
(please note that calls cost
Website: www.btgplc.com 10p per minute, plus network
extras, lines are open 9.00am
Registered number - 5.30pm Monday - Friday)
2670500 Tel (callers outside UK) +44
208 639 3399
Cautionary statement regarding forward-looking statements
This document contains certain projections and other
forward-looking statements with respect to the financial condition,
results of operations, businesses and prospects of BTG plc ("BTG").
These statements are based on current expectations and involve risk
and uncertainty because they relate to events and depend upon
circumstances that may or may not occur in the future. There are a
number of factors which could cause actual results or developments
to differ materially from those expressed or implied by these
forward-looking statements. Any of the assumptions underlying these
forward-looking statements could prove inaccurate or incorrect and
therefore any results contemplated in the forward-looking
statements may not actually be achieved. Nothing contained in this
document should be construed as a profit forecast or profit
estimate. Investors or other recipients are cautioned not to place
undue reliance on any forward-looking statements contained herein.
BTG undertakes no obligation to update or revise (publicly or
otherwise) any forward-looking statement, whether as a result of
new information, future events or other circumstances.
BTG and the BTG roundel logo are registered trademarks of BTG
International Ltd. CroFab and DigiFab are registered trademarks of
BTG International Inc. LC Bead is a registered trademark of
Biocompatibles UK Ltd. EKOS is a registered trademark of EKOS
Corporation. GALIL is a trademark of Galil Medical Ltd. Lemtrada is
a trademark of Genzyme Corporation. PneumRx is a registered
trademark of PneumRx, Inc. TheraSphere is a registered trademark of
Theragenics Corporation used under license by Biocompatibles UK
Ltd. Varithena is a registered trademark of Provensis Ltd.
Vistogard is a registered trademark of Wellstat Therapeutics
Corporation. Voraxaze is a registered trademark of Protherics
Medicines Development Ltd. Zytiga is a trademark of Johnson &
Johnson. Biocompatibles UK Ltd, EKOS Corporation, Galil Medical
Ltd, PneumRx, Inc., Protherics Medicines Development Ltd, and
Provensis Ltd are all BTG International group companies.
Appendices -reconciliation of IFRS to adjusted financial
information
Information on adjusted financial information
This press release includes financial information prepared in
accordance with International Financial Reporting Standards and the
Group's accounting policies, as well as financial information
presented on an adjusted basis.
Financial information on an adjusted basis excludes certain cash
and non-cash items which management believe are not reflective of
the underlying financial performance of the business and is
consistent with how management reviews the business for the purpose
of making operating decisions.
Metrics presented on an adjusted basis includes Constant
Exchange Rate (CER) growth, Adjusted Gross Profit, Adjusted
SG&A, Contribution, Adjusted Operating Profit, Adjusted Net
Financial Income / Expense, Adjusted Effective Tax Rate, Adjusted
Basic EPS and Free cash flow. A reconciliation between IFRS and
adjusted financial information is included on pages 24 to 26 of
this release.
These metrics are further discussed below;
-- CER growth: CER growth is calculated by restating H1 2017/18
performance using H1 2016/17 exchange rates for the relevant
period. CER growth allows management to focus on underlying
performance without the impact of foreign exchange, which it cannot
control.
-- Adjusted Operating Profit: Adjusted operating profit reflects
the IFRS operating profit of the Group excluding the impact of
certain adjustments, which have been separately outlined below.
Adjusted operating profit allows management to assess operational
performance without the impact of certain items which are not
reflective of underlying financial performance.
-- Adjusted Basic EPS: Adjusted Basic EPS reflects Basic EPS
excluding the after tax impact of certain adjustments, which have
been outlined below. Adjusted Basic EPS allows management to assess
EPS without the impact of certain items which are not reflective of
underlying financial performance.
-- Free Cash Flow: Reflects the cash generated from operating
activities after recurring capital expenditure, being a measure of
cash flow available for discretionary investing or financing
activities. The reconciliation of free cash flow to net cash flows
from operating activities is show on page 26.
-- Contribution: Contribution is defined as gross profit less
SG&A, which broadly reflects the cash generated by the Group's
reportable segments before investment in R&D or other investing
or financing activities. Management use this metric to assess
performance for each of its reportable segments and reviews the
metric both including and excluding the impact of certain
adjustments outlined below.
Adjusted gross profit, Adjusted SG&A, Adjusted Finance
Income / Expense and Adjusted effective tax rate are stated after
excluding the effect of those items outlined below.
Management apply a consistent policy in determining its adjusted
financial measures. In determining this policy, outlined below,
management assess the nature and materiality of individual or
groups of items, and have deemed it appropriate to adjust for those
items including their tax effect, which (i) occur outside the
normal course of business and (ii) relate to corporate acquisitions
or product in-licensing. These adjustments allow better
comparability with historical performance and identify year on year
trends in the underlying performance of the business.
Items excluded from adjusted financial measures in H1 2016/17,
H1 2017/18 and from our guidance for the full year 2017/18 are:
(a) Acquisition related adjustments
-- The release of the fair value uplift of acquired inventory or PP&E
-- Amortisation of acquired intangible assets and impairment
charges relating to acquired or in-licensed intangible assets or
goodwill
-- Fair value adjustments to contingent consideration liabilities
-- Transaction costs incurred in relation to corporate acquisitions
-- Reorganisation costs, including acquisition related
redundancy programmes, property costs, and asset impairments.
(b) Net costs relating to the settlement of litigation, disputes
and government investigations.
Reconciliation between IFRS and Adjusted financial information -
Consolidated Income Statement
For the period ended 30 September 2017
IFRS Release of Amortisation Fair Litigation Adjusted
Total the fair of acquired value and other(4) Total
value uplift intangible adjustments
on acquired assets to contingent
PPE(1) and consideration
impairments liabilities(3)
of acquired
or
in-licensed
intangible
assets(2)
GBPm GBPm GBPm GBPm GBPm GBPm
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Revenue 341.3 - - - - 341.3
Cost of sales (104.2) 0.1 - - - (104.1)
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Gross profit 237.1 0.1 - - - 237.2
Selling, general
and
administrative
expenses (152.2) - 5.5 - 53.5 (93.2)
Research and
development (46.1) - - - - (46.1)
Other operating
income 1.2 - - - - 1.2
Amortisation
of acquired
intangible
assets (21.4) - 21.4 - - -
Operating
profit 18.6 0.1 26.9 - 53.5 99.1
Financial
income 38.0 - - (26.5) - 11.5
Financial
expense (9.4) - - 3.7 - (5.7)
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Profit before
tax 47.2 0.1 26.9 (22.8) 53.5 104.9
Tax
credit/(charge) 5.7 - (9.0) - (20.8) (24.1)
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Profit after
tax 52.9 0.1 17.9 (22.8) 32.7 80.8
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Attributable
to
non-controlling
interests (0.4) - - - - (0.4)
Attributable
to owners
of the parent 53.3 0.1 17.9 (22.8) 32.7 81.2
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Profit after
tax 52.9 0.1 17.9 (22.8) 32.7 80.8
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Weighted average
number of
shares - basic 385.8 385.8
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Weighted average
number of
shares - diluted 388.7 388.7
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Basic earnings
per share 13.8p - 4.6p (5.9p) 8.5p 21.0p
------------------ ---------- -------------- -------------- --------------- -------------- ---------
Diluted earnings
per share 13.7p - 4.6p (5.9p) 8.5p 20.9p
------------------ ---------- -------------- -------------- --------------- -------------- ---------
1. The release of the fair value uplift relating to PP&E
acquired with Galil Medical in June 2016 of GBP0.1m.
2. Amortisation charges relating to intangible assets acquired
through corporate acquisitions of GBP21.4m and impairment charges
relating the Vistogard(R) intangible asset of GBP5.5m.
3. Fair value adjustments to contingent consideration
liabilities comprise a credit of GBP26.5m relating to the PneumRx
acquisition and a charge of GBP3.7m relating to the Galil Medical
acquisition.
4. Litigation costs reflect amounts provided based on the Final
Order issued by the Court of Chancery of Delaware ruling against
BTG in respect of the previously announced litigation with Wellstat
Therapeutics Corporation concerning the commercialisation of
Vistogard(R) . The Court has found that BTG has breached the
distribution agreement and that Wellstat is entitled to damages of
$55.8m plus interest and costs. BTG is currently assessing its
options, which include an appeal.
For the period ended 30 September 2016
IFRS Release Amortisation Acquisition Fair value Litigation Adjusted
Total of of acquired costs(3) adjustments and Total
the fair intangible to contingent other(5)
value assets(2) consideration
uplift liabilities(4)
on
acquired
inventory
and
PPE(1)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- ---------- ---------- ------------- ------------ --------------- ----------- ---------
Revenue 285.4 - - - - - 285.4
Cost of sales (88.7) 0.7 - - - - (88.0)
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Gross profit 196.7 0.7 - - - - 197.4
Selling, general
and
administrative
expenses (110.4) - - - - 28.0 (82.4)
Research and
development (37.8) - - - - - (37.8)
Other operating
income 1.6 - - - - - 1.6
Amortisation
of acquired
intangible
assets (19.9) - 19.9 - - - -
Acquisition
and
reorganisation
costs (1.1) - - 1.1 - - -
------------------ ---------- ---------- ------------- ------------ --------------- ----------- -----------
Operating
profit 29.1 0.7 19.9 1.1 - 28.0 78.8
Financial
income 0.1 - - - - - 0.1
Financial
expense (18.1) - - - 0.3 - (17.8)
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Profit before
tax 11.1 0.7 19.9 1.1 0.3 28.0 61.1
Tax
credit/(charge) 1.8 (0.3) (6.4) - - (2.8) (7.7)
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Profit after
tax 12.9 0.4 13.5 1.1 0.3 25.2 53.4
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Weighted average
number of
shares - basic 383.8 383.8
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Weighted average
number of
shares - diluted 389.5 389.5
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Basic earnings
per share 3.4p 0.1p 3.5p 0.2p 0.1p 6.6p 13.9p
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
Diluted earnings
per share 3.3p 0.1p 3.5p 0.2p 0.1p 6.5p 13.7p
------------------ ---------- ---------- ------------- ------------ --------------- ----------- ---------
1. The release of the fair value uplift relating to inventory
and PP&E acquired with Galil Medical in June 2016 of
GBP0.7m.
2. Amortisation charges relating to intangible assets acquired
through corporate acquisitions of GBP19.9m.
3. Acquisition costs are directly attributable costs related to
the acquisition of Galil Medical in June 2016, including costs
incurred with professional advisers in relation to the corporate
acquisition of GBP1.1m.
4. Fair value adjustments to contingent consideration includes
the change in fair value of contingent consideration liabilities
relating to the PneumRx acquisition of GBP0.3m.
5. Settlement with the US government in relation to the
Department of Justice's investigation of the historic marketing of
LC Bead(R) of GBP28.0m.
Reconciliation between IFRS and Adjusted financial information -
Free Cash Flow
For the period ended 30 September 2017
Net cash inflow Purchase of Purchase of Free cash
from operating intangible property, plant Flow
activities assets and equipment
GBPm GBPm GBPm GBPm
---------------- ------------ ----------------- ----------
78.8 (0.5) (3.1) 75.2
For the period ended 30 September 2016
Net cash inflow Purchase of Purchase of Free cash
from operating intangible property, plant Flow
activities assets and equipment
GBPm GBPm GBPm GBPm
---------------- ------------ ----------------- ----------
60.8 (0.2) (4.9) 55.7
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FFMESDFWSELF
(END) Dow Jones Newswires
November 14, 2017 02:01 ET (07:01 GMT)
Btg (LSE:BTG)
Historical Stock Chart
From Apr 2024 to May 2024
Btg (LSE:BTG)
Historical Stock Chart
From May 2023 to May 2024