RNS Number:1777Z
Cobra Bio-Manufacturing PLC
28 June 2007
For Immediate Release 28 June 2007
COBRA BIO-MANUFACTURING PLC
Interim results for the six months ended 31 March 2007
Keele, UK: Cobra Biomanufacturing Plc (AIM: CBF), the international manufacturer
of biopharmaceuticals, today announces its interim results for the six months
ended 31 March 2007.
Financial Highlights
* Revenue up 24% to #5.3m (H1 2006: #4.3m)
* Profit before tax to #0.1m (H1 2006: #0.4m loss)
* Operating cash inflow up 54% to #0.7m (H1 2006: #0.4m inflow)
* Cash and short term investments up to #3.3m at period end (30
September 2006: #3.2m)
* Total contracted forward business currently #4.2m which is below
expectations, #3.4m of which is deliverable in H2 2007
Operational Highlights
* North American revenue 77% of total #4.1m (H1 2006 #3.8m)
* Continental Europe revenue three fold increase to #1.1m (H1 2006: #0.3m)
* Protein based revenue 56% of total #3.0m (H1 2006: #3.0m)
* Virus based revenue more than doubled to #1.6m (H1 2006: #0.7m)
For further information, please contact:
Cobra Biomanufacturing Plc Tel: +44 (0) 1782 714 181
Peter Fothergill, Chairman
David Thatcher, Chief Executive Officer
Buchanan Communications Tel: +44 (0) 20 7466 5000
Tim Anderson
Rebecca Skye Dietrich
Seymour Pierce (NOMAD & Broker) Tel: +44 (0) 20 107 8000
Stuart Lane
Chairman's and Chief Executive's Statement
Financial Summary
Cobra's performance in the six months to 31 March 2007 maintained the momentum
of the previous five half year reporting periods. Revenue increased by 24% to
#5.3m (H1 2006: #4.3m), operating cash inflow increased to #0.7m (H1 2006:
#0.4m) and the closing deferred income balance stood at #1.5m (30 September
2006: #1.2m) reflecting the value of contracts in progress at 31 March 2007.
Profit before tax of #0.1m was a meaningful improvement (H1 2006: #0.4m loss)
and cash and short term investments at the period end showed a small increase to
#3.3m (30 September 2006: #3.2m).
Contracted Order Book
These results were achieved at the same time as a further investment at our
Oxford facility was implemented to deliver the historically high opening
contracted forward order book of #5.6m. The contracted forward order book has
now eased back to #4.2m, #3.4m of which is scheduled for delivery in the second
half of the financial year.
Revenue
North America continued to provide the majority of revenue with 77% or #4.1m of
the total (H1 2006: #3.8m) a 10% increase on the previous comparative period.
Europe (excluding the UK) grew rapidly to #1.1m (H1 2006: #0.3m) a three fold
growth which reflects an increasingly improved funding environment.
In line with our strategy to focus on areas of the business showing greatest
growth potential virus based revenue accounted for 31% of revenue which at #1.6m
is more than double the comparative period's performance (H1 2006: #0.7m).
Protein based revenue has remained steady at #3.0m providing 56% of the total
(H1 2006: #3.0m) and DNA is unchanged at #0.6m or 10% of revenue (H1 2006:
#0.5m).
ORT-VAC
During the period work has continued on the Group's own intellectual property
portfolio and in particular the ORT-VAC oral vaccines technology. A recently
announced #1.1m DTI grant will be used to fund preclinical studies to help
advance this exciting opportunity to develop a system which could be widely
applicable in both humans and animals. Discussions are underway with a number of
third parties who are interested in accessing the technology.
Outlook
As indicated in previous statements the core manufacturing services business
continues to face a challenging and unpredictable pattern of demand, both
geographically and by product type, further exacerbated by the cancellation of
signed business as was the case with the recently announced GSK/IAVI contract,
which has resulted in the lower than expected forward order book.
Accordingly, despite a good performance in the first half of the financial year,
the Directors advise that market expectations for the full financial year will
not be met. However we will continue to pursue outstanding contract signatures
to fill the vacant slots currently available for the remainder of the financial
year and new contracts which are currently being negotiated for the next
financial year. Additionally, opportunities to reduce the volatility of the
business continue to be actively pursued.
Peter Fothergill David Thatcher
Chairman Chief Executive
28 June 2007 28 June 2007
Financial Review
Basis of Preparation
These are the first results of the Group to be stated under International
Financial Reporting Standards (IFRS) and the comparatives have been restated on
this basis. The principal impact of IFRS on the results has been in relation to
the following:
a. There is a provision for holiday pay shown under other operating
expenditure.
b. In accordance with IFRS 2, share based payments are measured at a fair
value at the date of grant and expensed on a straight line basis over the
vesting period of the award.
c. Under IFRS Cobra has chosen to reclassify foreign exchange gains under
finance income, where as previously under UK GAAP they were shown under other
operating costs.
d. Under UK GAAP short term bank deposits were included in cash at bank
including short term deposits, under IFRS, those with original maturities of
less than three months are included in cash and cash equivalents and those with
original maturities of three months and more are shown under short term
investments.
The effect of these adjustments on the results, income statement, balance sheet
and equity of the Group are set out in note 9.
Income Statement
Revenue for the period increased 24% to #5.3m (H1 2006: #4.3m), which provided a
gross margin improvement to 52% (H1 2006: 50%) and a profit before tax of #0.1m
(H1 2006: #0.4m loss). Research and development expenditure increased in the
period by 17% to #140k (H1 2006: #120k), with other operating expenditure
excluding share based payments increasing by 6% to #2.5m (H1 2006: #2.4m).
Balance Sheet
Cobra invested a further #0.5m in plant and equipment in the period (H1 2006:
#0.6m). The deferred income balance increased to #1.5m (30 September 2006:
#1.2m), offset by a corresponding increase in inventories to #0.7m (30 September
2006: #0.6m). Cash and short term investments increased in the period to #3.3m
(30 September 2006: #3.2m) and non current liabilities fell to #2.7m (30
September 2006: #2.8m). The composition of non current liabilities are split
between a bank loan, secured against freehold buildings of #1.8m (30 September
2006: #1.8m) repayable over a 13 year period commencing November 2007 and
finance lease obligations of #0.9m (30 September 2006: #1.0m) repayable between
2 and 5 years.
Cash Flow
Net cash flow from operating activities for the period increased to #0.7m (H1
2006: #0.4m), offset by investing activities to acquire plant and equipment in
the period of #0.5m (H1 2006: #0.6m), with any finance leases acquired in the
period offset by existing finance repayments (H1 2006: #0.2m inflow).
The result of which is an increase in closing cash and short term investments to
#3.3m (30 September 2006: #3.2m)
Peter Coleman
Chief Financial Officer
28 June 2007
Group Income Statement
For the half year ended 31 March 2007
Unaudited Unaudited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
Notes 2007 2006 2006
Restated* Restated*
#000's #000's #000's
Revenue 2 5,349 4,321 10,145
Cost of sales (2,590) (2,160) (4,808)
Gross profit 2,759 2,161 5,337
Research and development (140) (120) (401)
Other operating costs (2,504) (2,359) (4,813)
Share based payments (18) (75) (121)
Group operating profit/(loss) 97 (393) 2
Finance income 3 73 38 192
Finance charges 3 (73) (52) (123)
Profit/(loss) before tax 97 (407) 71
Taxation 4 20 - 55
Profit/(loss) for the period 117 (407) 126
Earnings/(loss) per share
Basic 8 0.6p (2.1)p 0.6p
Diluted 8 0.6p (2.1)p 0.6p
The results for the period are derived from continuing activities.
*Restated to reflect the adoption of IFRS as per note 9.
There was no recognised income or expenditure other than the profit/(loss) for
the period/year.
Accordingly no Statement of Recognised Income and Expenditure has been prepared.
Group Balance Sheet
As at 31 March 2007
Unaudited Unaudited
31 March 31 March 30 September
Notes 2007 2006 2006
Restated* Restated*
#000's #000's #000's
Non current assets
Property, plant and equipment 8,360 7,621 8,355
Intangible assets 151 - 160
8,511 7,621 8,515
Current assets
Inventories 739 570 595
Trade and other receivables 5 2,050 1,958 2,273
Short term investments 275 275 275
Cash and cash equivalents 3,059 2,834 2,940
6,123 5,637 6,083
Total assets 14,634 13,258 14,598
Current liabilities
Bank loans (41) - (37)
Obligations under finance leases (523) (359) (470)
Trade and other payables 6 (3,240) (3,109) (3,302)
(3,804) (3,468) (3,809)
Non current liabilities
Bank loans (1,756) (1,280) (1,773)
Obligations under finance leases (927) (1,078) (1,004)
(2,683) (2,358) (2,777)
Total liabilities (6,487) (5,826) (6,586)
Net assets 8,147 7,432 8,012
Capital and reserves
Called up share capital 1,959 1,951 1,959
Share premium 9,634 9,634 9,634
Merger reserve 29,729 29,729 29,729
Other reserves 439 382 421
Profit and loss account (33,614) (34,264) (33,731)
Total equity 8,147 7,432 8,012
*Restated to reflect the adoption of IFRS as per note 9
Group Cash Flow Statement
For the half year ended 31 March 2007
Unaudited Unaudited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Net cash inflow from operating activities 7 655 425 1,141
Investing activities
Payments to acquire property, plant and equipment (535) (551) (1,484)
Payments to acquire intangible assets (4) - (157)
Net cash outflow from investing activities (539) (551) (1,641)
Financing activities
New borrowings - - 1,650
Repayment of borrowings - - (1,100)
Lease finance acquired via sale and leaseback 217 402 504
Repayment of capital elements of finance leases (241) (177) (372)
Issue of ordinary shares - - 8
Purchase of treasury shares - - (8)
Finance income 100 27 125
Interest on bank loans (22) (9) (33)
Interest element of finance leases (51) (43) (94)
Net cash inflow from financing activities 3 200 680
Increase in cash and cash equivalents 119 74 180
Opening cash and cash equivalents 2,940 2,760 2,760
Closing cash and cash equivalents 3,059 2,834 2,940
Group Statement of Changes in Equity
As at 31 March 2007
Share Share Merger Other Profit and
capital premium reserve reserves loss account Total
#000's #000's #000's #000's #000's #000's
At 1 October 2005 1,951 9,634 29,729 307 (33,857) 7,764
Share based payments - - - 75 - 75
Loss for the period - - - - (407) (407)
At 31 March 2006 1,951 9,634 29,729 382 (34,264) 7,432
Increase in share capital 8 - - - - 8
Shares purchased - - - (8) - (8)
Share based payments - - - 47 - 47
Profit for the period - - - - 533 533
At 30 September 2006 1,959 9,634 29,729 421 (33,731) 8,012
Share based payments - - - 18 - 18
Profit for the period - - - - 117 117
At 31 March 2007 1,959 9,634 29,729 439 (33,614) 8,147
Notes to the Unaudited Results
1 Accounting policies and basis of preparation
The Group's previous financial statements have been prepared under UK Generally
Accepted Accounting Principles (UK GAAP). For the financial year ended 30
September 2007, the Group has decided to prepare its annual consolidated
financial statements in accordance with IFRS as adopted by the European Union
(EU) and implemented in the UK.
The Group's date of transition to IFRS was 1 October 2005 at which date the
Group prepared its opening IFRS balance sheet. The financial information for the
six months ended 31 March 2007 is unaudited and has been prepared in accordance
with the Group's accounting policies, based on IFRS standards that are expected
to apply for the financial year 2007. The financial information for the six
months ended 31 March 2006 is also unaudited and has been restated under IFRS.
The presentation of financial information under IFRS is governed by IFRS 1. In
some cases this will require the presentation of an item in a different
position, or the use of a different description in the IFRS income statement or
balance sheet to that adopted in the UK GAAP profit and loss account or balance
sheet. These reclassifications have been described in the explanatory notes.
An explanation of how the transition from UK GAAP to IFRS has affected the
Group's results and income statements for the period ended 31 March 2006 and the
year ended 30 September 2006 and the equity and balance sheets as at 1 October
2005 (the date of transition), 31 March 2006 and 30 September 2006 is set out in
note 9.
The interim financial information has not been audited and does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985
but has been reviewed by the auditors in accordance with Bulletin 1999 / 4
issued by the Auditing Practices Board. The Company's statutory accounts for
the year ended 30 September 2006, prepared under UK GAAP, have been delivered to
the Registrar of Companies; the report of the auditors on these accounts was
unqualified and did not contain a statement under Section 237 (2) or (3) of the
Companies Act 1985.
Accounting policies: The principal accounting policies adopted in the
preparation of these interim financial statements are set out below. These
policies have been consistently applied to all periods presented, unless
otherwise stated.
Cobra principal activity is that of delivering contract manufacturing services
for the global biopharmaceutical industry. The Directors believe that the Group
has sufficient funds for the foreseeable future and therefore the interim
financial statements have been prepared on the going concern basis.
Basis of consolidation: The consolidated interim financial statements comprise
the accounts of Cobra Biomanufacturing Plc and its subsidiary undertakings,
Cobra Biologics Limited, Cobra Biomanufacturing EBT Limited and Cobra
Biomanufacturing LLC up to 31 March 2007.
Revenue: Excludes value added tax and represents the amounts receivable in
respect of the sale of services during the period. Revenue on contracts is
invoiced in accordance with the terms of the agreement with the customer. Non
refundable capacity reservation fees, which are usually invoiced and paid upon
contractual signature, are recognised as revenue as the contract progresses. The
remainder of the contractual revenue is recognised upon the stage of completion
when the outcome of the contract can be foreseen with reasonable certainty and
after allowing for costs of completion.
Research and development expenditure: Expenditure on manufacturing process
improvements or know how, which includes internal wage costs and external costs
such as patenting, external studies and consultancy, which the Group is
satisfied that it is probable that future economic benefit will result is then
capitalised as an intangible asset and amortised through research and
development expenditure over its expected useful life. Capitalisation commences
from the point at which the technical feasibility and commercial viability can
be demonstrated.
Expenditure on research and development that does not meet the above criteria is
written off in the period in which it is incurred.
Intangible assets: Are stated at cost less provisions for amortisation and
impairments. Patents and know how are amortised over their estimated useful
economic lives from the time they are available for use. The estimated useful
lives for determining the amortisation charge are reviewed annually.
Property, plant and equipment: Depreciation is provided on all property, plant
and equipment, other than freehold land, at rates calculated to write off the
cost less residual value of each asset evenly over its expected useful life as
follows:
Freehold buildings between 15 and 50 years
Plant and laboratory equipment between 6.67 and 10 years
Short leasehold building improvements 6.67 years
Office equipment 4 years
Motor vehicles 3 years
The cost of property, plant and equipment includes directly attributable finance
costs, calculated on a day to day basis, on expenditure incurred during
construction and modification. The carrying values of property, plant and
equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. Assets under construction
include the costs directly attributable to bringing the asset into working
condition for its intended use.
Government grants: In respect of capital expenditure are credited to a deferred
income account and are released to profit over the expected useful lives of the
relevant assets by equal instalments. Grants of a revenue nature are credited to
income so as to match them with the expenditure to which they relate.
Inventories: Are stated in the balance sheet at the lower of cost incurred in
bringing each element of inventory to its present location and condition, and
net realisable value. Cost is calculated on a first in first out basis.
Raw materials: purchase cost on a first in first out basis.
Work in progress: cost of direct materials and labour plus
attributable overheads based on a normal level of
activity.
Net realisable value is based on estimated selling price less any further costs
expected to be incurred on completion and disposal.
Leasing and hire purchase commitments: Assets held under finance leases and hire
purchase contracts, which are those where substantially all the risks and
rewards of ownership of the asset have passed to the Group, are capitalised in
the balance sheet and are depreciated over their useful lives.
The interest element of the rental obligations is charged to the profit and loss
account over the period of the lease and represents a constant proportion of the
balance of capital repayments outstanding.
Rentals paid under operating leases are charged to income on a straight line
basis over the lease term.
Deferred tax: Is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events have occurred at that date that will result in an obligation to pay more,
or a right to pay less or to receive more, tax. Deferred tax assets are
recognised only to the extent that the directors consider that it is more likely
than not that there will be suitable taxable profits from which the future
reversal of the underlying timing differences can be deducted. Deferred tax is
measured on an undiscounted basis at the tax rates that are expected to apply in
the periods in which timing differences reverse, based on tax rates and laws
enacted or substantively enacted at the balance sheet date.
Share based payments: The Group makes equity settled share based payments to its
employees and directors. Equity settled share based payments are measured at
fair value at the date of grant and expensed on a straight line basis over the
vesting period of the award. At each balance sheet date, the Company revises
its estimate of the number of options that are expected to become exercisable.
The value of any shares or options granted is charged to the income statement
over the period the shares vest, with a corresponding credit to reserves. When
share options are exercised, the proceeds received, net of any transaction
costs, are credited to share capital (nominal value) and share premium.
The principal assumptions used to calculate the value of options issued are:
Share price volatility 50.4%
Risk free rate of return Ranging from 4.2% to 5.1%
Date of exercise Normally assumed to be the first possible exercise date
Short term investments: Assets in this category are held at amortised cost and
are short term deposits with original maturities of more than three months.
Cash and cash equivalents: Include cash in hand and at bank and short term
deposits with original maturities of three months or less.
Foreign currencies: Transactions in foreign currencies are recorded at the rate
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the rate of exchange
ruling at the balance sheet date. All differences are taken to the income
statement.
Financial instruments: The Group uses financial instruments to reduce exposure
to foreign exchange risk and interest rate movements. The Group does not hold or
issue derivative financial instruments for speculative purposes. The criteria
for forward foreign currency contracts are:
* The instrument must be related to a firm foreign currency commitment;
* It must involve the same currency as the hedged item; and
* It must reduce the risk of foreign currency exchange rate movements on
the Group's operation.
Employee benefits: The Group operates a defined contribution scheme, covering
all eligible employees. Contributions to the defined contribution pension scheme
and all other employee benefit costs, most notably holiday pay are charged to
the income statement on an accruals basis.
2. Revenue
The Group operates in one principal area of activity, that of contract
manufacturing services. All revenue originates from the UK. The geographical
analysis of revenue by destination is shown as follows:
Unaudited Unaudited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
North America 4,145 3,768 8,656
United Kingdom - 227 589
Europe (excluding United Kingdom) 1,076 276 703
Rest of the World 128 50 197
5,349 4,321 10,145
The analysis of revenue by customers' biopharmaceutical product type is as
follows:
Unaudited Unaudited
6 months 6 months Year
Ended ended ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Contract manufacturing services
Protein 2,964 2,975 6,742
Virus 1,632 713 1,946
DNA 551 498 1,013
Cell line 170 135 444
5,317 4,321 10,145
License income 32 - -
5,349 4,321 10,145
The licensing income generated in the period was received from a North American
customer, whose product was protein based and the receipt is associated with
contract manufacturing services.
3. Finance income and charges
Unaudited Unaudited
6 months 6 months Year
ended ended Ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Finance income
Bank interest receivable 40 27 65
Exchange rate gains 33 11 127
73 38 192
Finance charges
Interest payable bank loans 22 9 33
Interest payable on finance leases 51 43 94
73 52 127
Less: interest capitalised - - (4)
73 52 123
4. Taxation
The Group is entitled to Research and Development tax relief under Schedule 20
of the Finance Act 2000, in respect of the periods ended 31 March 2006 & 2007
and the year ended 30 September 2006.
As at 31 March 2007 the Group had tax losses of #14.0m (30 September 2006
#14.0m), these losses are available for offset against future profits, subject
to agreement from HM Revenue and Customs. These losses have not been recognised
as a deferred tax asset as there is insufficient certainty as to their future
recoverability.
Unaudited Unaudited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Taxation on profit/(loss) on ordinary activities
Tax credit in relation to R&D claim (10) - (55)
Adjustments in respect of previous periods (10) - -
Total tax (20) - (55)
5. Trade and other receivables
Unaudited Unaudited
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Trade receivables 1,422 1,432 1,445
Other receivables 289 162 319
Prepayments 339 364 509
2,050 1,958 2,273
6. Trade and other payables
Unaudited Unaudited
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Trade payables 994 1,276 1,394
Deferred income 1,535 1,258 1,195
Taxation 127 95 121
Accruals and other provisions 584 480 592
3,240 3,109 3,302
7. Net cash inflow from operating activities
Unaudited Unaudited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Operating profit/(loss) 97 (393) 2
Depreciation of property, plant and equipment 408 353 737
Amortisation of intangible assets 9 - 1
Share based payments 18 75 121
Increase in inventories (144) (337) (364)
Decrease/(increase) in receivables 119 26 (203)
Increase in deferred income 340 902 839
Decrease in payables (257) (201) (41)
Net cash inflow from operations 590 425 1,092
R&D tax credit 65 - 49
Net cash inflow from operating activities 655 425 1,141
8. Earnings/(loss) per ordinary share
Unaudited Unaudited
6 months 6 months Year
ended ended Ended
31 March 31 March 30 September
2007 2006 2006
#000's #000's #000's
Profit/(loss) for the period 117 (407) 126
Basic earnings/(loss) per share
Weighted average number of shares (000's) 19,591 19,501 19,504
Earnings/(loss) per share (pence) 0.6 (2.1) 0.6
Diluted earnings/(loss) per share
Weighted average number of shares (000's) 19,980 19,501 19,893
Earnings/(loss) per share (pence) 0.6 (2.1) 0.6
The weighted average number of ordinary shares for calculating the diluted
earnings per share for the year ended 30 September 2006 and the period ended 31
March 2007 include 389,304 share options and warrants that would potentially be
issued and would have the effect of reducing the earnings per ordinary share and
would therefore be dilutive.
9. Explanation of the transition to IFRS
For all periods up to and including the year ended 30 September 2006, the Group
prepared its financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (UK GAAP).
In preparing these interim financial statements, the Group has started from an
opening balance sheet as at 1 October 2005 the Group's date of transition to
IFRS, and made those changes in accounting policies and other restatements
required by IFRS 1, for the first time adoption of IFRS.
IFRS 1 allows first time adopters certain exemptions from the general
requirements to retrospectively apply IFRS as effective for the 30 September
2005 year end. The optional exemptions taken by the Group are as follows:
Business combinations: The Group has elected not to apply IFRS 3 Business
Combinations retrospectively to business that took place prior to the transition
date. Consequently, goodwill arising on business combinations before transition
date remains at its previous UK GAAP carrying value as at the date of
transition.
Share based payments: The Group has adopted the exemption in IFRS 1 such that
the application of IFRS 2 "Share Based Payments" applies only to awards made
after 7 November 2002, which have not vested by 1 January 2005.
The principal impact of IFRS on these interim financial statements has been in
relation to the following:
a. There is a provision for holiday pay shown under other operating
expenditure.
b. In accordance with IFRS 2, share based payments are measured at a fair
value at the date of grant and expensed on a straight line basis over the
vesting period of the award.
c. Under IFRS Cobra has chosen to reclassify foreign exchange gains under
finance income, under UK GAAP they were previously shown under other operating
costs.
d. Under UK GAAP short term bank deposits were included in cash at bank
including short term deposits, under IFRS, those with original maturities of
less than three months are included in cash and cash equivalents and those with
original maturities of three months or more are shown under short term
investments.
The reconciliation between UK GAAP and IFRS for the Group's (loss)/profit and
income statements for the period ended 31 March 2006 and the year ended 30
September 2006 and the total equity and balance sheets as at 1 October 2005 (the
date of transition), 31 March 2006 and 30 September 2006 are presented below:
Reconciliation of (loss)/profit for the period ended 31 March 2006 and the year
ended 30 September 2006
Unaudited
6 months Year
ended ended
31 March 30 September
2006 2006
#000's #000's
(Loss)/profit after tax under UK GAAP (347) 265
Holiday pay accrual a 15 (18)
Share based payments b (75) (121)
(Loss)/profit after tax under IFRS (407) 126
Reconciliation of income statement for the six months ended 31 March 2006
UK IFRS
GAAP effect IFRS
#000's #000's #000's
Revenue 4,321 - 4,321
Cost of sales (2,160) - (2,160)
Gross profit 2,161 - 2,161
Research and development (120) - (120)
Other operating expenses a & c (2,363) 4 (2,359)
Share based payments b - (75) (75)
Group operating loss (322) (71) (393)
Finance income c 27 11 38
Finance charges (52) - (52)
Loss before tax (347) (60) (407)
Taxation - - -
Loss after tax (347) (60) (407)
Reconciliation of income statement for the year ended 30 September 2006
UK IFRS
GAAP Effect IFRS
#000's #000's #000's
Revenue 10,145 - 10,145
Cost of sales (4,808) - (4,808)
Gross profit 5,337 - 5,337
Research and development (401) - (401)
Other operating expenses a & c (4,668) (145) (4,813)
Share based payments b - (121) (121)
Group operating profit 268 (266) 2
Finance income c 65 127 192
Finance charges (123) - (123)
Profit before tax 210 (139) 71
Taxation 55 - 55
Profit after tax 265 (139) 126
Reconciliation of equity as at 1 October 2005 (date of transition), 31 March
2006 and 30 September 2006
Unaudited
1 October 31 March 30 September
2005 2006 2006
#000's #000's #000's
Total equity under UK GAAP 7,813 7,466 8,079
Holiday pay accrual a (49) (34) (67)
Total equity under IFRS 7,764 7,432 8,012
Reconciliation of balance sheet presentation at 1 October 2005
(Date of transition to IFRS)
UK IFRS
GAAP effect IFRS
#000's #000's #000's
Non current assets
Property, plant and equipment 7,495 - 7,495
7,495 - 7,495
Current assets
Inventories 233 - 233
Trade and other receivables 2,013 - 2,013
Short term investments d - 275 275
Cash and cash equivalents d 3,036 (275) 2,761
5,282 - 5,282
Total assets 12,777 - 12,777
Current liabilities
Obligations under finance leases (306) - (306)
Trade and other payables a (2,475) (49) (2,524)
(2,781) (49) (2,830)
Non current liabilities
Bank loans (1,280) - (1,280)
Obligations under finance leases (903) - (903)
(2,183) - (2,183)
Total liabilities (4,964) (49) (5,013)
Net assets 7,813 (49) 7,764
Capital and reserves
Share capital 1,951 - 1,951
Share premium 9,634 - 9,634
Merger adjustment 29,729 - 29,729
Other reserves b - 307 307
Profit and loss account a & b (33,501) (356) (33,857)
Total equity 7,813 (49) 7,764
Reconciliation of balance sheet presentation at 31 March 2006
UK IFRS
GAAP effect IFRS
#000's #000's #000's
Non current assets
Property, plant and equipment 7,621 - 7,621
7,621 - 7,621
Current assets
Inventories 570 - 570
Trade and other receivables 1,958 - 1,958
Short term investments d - 275 275
Cash and cash equivalents d 3,109 (275) 2,834
5,637 - 5,637
Total assets 13,258 - 13,258
Current liabilities
Obligations under finance leases (359) - (359)
Trade and other payables a (3,075) (34) (3,109)
(3,434) (34) (3,468)
Non current liabilities
Bank loans (1,280) - (1,280)
Obligations under finance leases (1,078) - (1,078)
(2,358) - (2,358)
Total liabilities (5,792) (34) (5,826)
Net assets 7,466 (34) 7,432
Capital and reserves
Share capital 1,951 - 1,951
Share premium 9,634 - 9,634
Merger adjustment 29,729 - 29,729
Other reserves b - 382 382
Profit and loss account a & b (33,848) (416) (34,264)
Total equity 7,466 (34) 7,432
Reconciliation of balance sheet presentation at 30 September 2006
UK IFRS
GAAP effect IFRS
#000's #000's #000's
Non current assets
Property, plant and equipment 8,355 - 8,355
Intangible assets 160 - 160
8,515 - 8,515
Current assets
Inventories 595 - 595
Trade and other receivables 2,273 - 2,273
Short term investments d - 275 275
Cash and cash equivalents d 3,215 (275) 2,940
6,083 - 6,083
Total assets 14,598 - 14,598
Current liabilities
Bank loans (37) - (37)
Obligations under finance leases a (470) - (470)
Trade and other payables (3,235) (67) (3,302)
(3,742) (67) (3,809)
Non current liabilities
Bank loans (1,773) - (1,773)
Obligations under finance leases (1,004) - (1,004)
(2,777) - (2,777)
Total liabilities (6,519) (67) (6,586)
Net assets 8,079 (67) 8,012
Capital and reserves
Share capital 1,959 - 1,959
Share premium 9,634 - 9,634
Merger adjustment b 29,729 - 29,729
Other reserves a & b (7) 428 421
Profit and loss account (33,236) (495) (33,731)
Total equity 8,079 (67) 8,012
Independent Review Report to Cobra Biomanufacturing Plc
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 31 March 2007, which comprises the Group Income Statement,
Group Balance Sheet, Group Cash Flow Statement, Group Statement of Changes in
Equity and the related notes 1 to 9. We have read the other information
contained in the Interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the Company in accordance with guidance contained
in Bulletin 1999/4 issued by the Auditing Practices Board. Our work has been
undertaken so that we might state to the Company those matters we are required
to state to them in an independent review 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 formed.
Directors' responsibilities
The Interim Report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for ensuring that the accounting policies and presentation
applied to the Interim Report are consistent with those applied in preparing the
preceding Annual Report except where there are changes and the resulting
differences have been disclosed and also preparing the Interim Report as
required by the AIM Rules issued by the London Stock Exchange.
International Financial Reporting Standards
As disclosed in note 1, the next financial statements of the Group will be
prepared in accordance with International Financial Reporting Standards as
adopted for use in the EU. Accordingly, the Interim Report has been prepared in
accordance with the recognition and measurement criteria of IFRS and by the AIM
Rules. The accounting policies are consistent with those that the Directors
intend to use in the annual financial statements.
Review work performed
We conducted our review having regard to the guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of the Group's management and
applying analytical procedures to the financial information and underlying
financial data, and based thereon, assessing whether the accounting policies and
presentation have been consistently applied, unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2007.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
28 June 2007
Cobra Biomanufacturing Plc
Registered Office
Stephenson Building
Keele Science Park
Keele
Staffordshire
UK
ST5 5SP
Tel: +44(0) 1782 714181
Fax: +44(0) 1782 714168
www.cobrabio.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFLARDIDFID
Cobra Bio-manufacturing (LSE:CBF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cobra Bio-manufacturing (LSE:CBF)
Historical Stock Chart
From Jul 2023 to Jul 2024
