Interim Results
September 27 2007 - 2:02AM
UK Regulatory
RNS Number:5745E
Chromogenex PLC
27 September 2007
Chromogenex plc
("Chromogenex" or "the Company")
Interim results
Chromogenex, the developer and manufacturer of cosmetic and medical laser
systems, today announces its unaudited interim results for the six months to
30 June 2007
Highlights
* Revenue up 9% to #2.26 million (2006 (restated): #2.07million)
* Nlite laser revenue up 106%
* Consumables and Service revenue up 24% and 56% respectively
* Profit attributable to equity shareholders reduced from #81k (restated)
to #10k
* Net assets increase by 21% to #2.40 million (2006 (restated):#1.99million)
* Successful launch of Nicolite product - an advanced system designed to
help people stop smoking
Peter McGuinness, Chairman and CEO of Chromogenex, commented: "With the
continued resurgent interest in Nlite laser and strong demand for Chromolite S
along with Nicolite sales, the company anticipates, in line with last years
seasonality, a record fourth quarter sales and profitability.
"In addition, the company has entered into discussions with an overseas company
with a view to a strategic relationship that will broaden our product portfolio
and increase international distribution. We look forward to updating the market
in the near future on what we believe is a significant milestone for the
business."
- ends -
For further information:
Chromogenex plc 020 8434 0540
Peter McGuinness, Chairman 07775 834 777
Blue Oar Securities 020 7448 4400
Jerry Keen
Threadneedle Communications 020 7936 9605
Graham Herring/Josh Royston 07793 839 024
Chromogenex plc
Chairman's Statement
for the period ended 30 June 2007
We are pleased with the resurgence in Nlite sales around the world following the
launch of our rebranded Regenlite and Regenstation versions which offer
increased applications for practitioners. Nlite is proven to be effective for
the treatment of acne, skin rejuvenation and vascular lesions and we have now
developed protocols for psoriasis, warts and verrucas.
Overall results reflect lower sales of original versions of Chromolite, the
Intense Pulsed Light system for hair removal and pigmented lesions. As
previously reported, the anticipated introduction of a more advanced version of
Chromolite, the Sapphire or S model, in July this year, has resulted in lower
sales of the original version as distributors wait for the new model. The S
model offers 40% higher energy and greater skin cooling performance and has been
well received in the market. We expect increased sales in the second half.
Gross margins are lower than the same period last year due to reduced Chromolite
sales and increased sales of Nlite and Smoothshapes, the cellulite treatment
device, which have lower gross margins. We do not see this as a trend going
forward as Chromolite S sales increase. In addition, we have expanded our direct
sales force in the UK which brings significantly better margins on all products.
We anticipate year end gross margins broadly in line with management forecast.
We are particularly encouraged by the response to our new Nicolite laser for
smoking cessation. Proven to be over six times more effective than nicotine
patches, we introduced this product this month and orders are well ahead of
expectation. To date, we have received orders in excess of #1million most of
which will be shipped by year end.
With the continued resurgent interest in Nlite laser and strong demand for
Chromolite S along with Nicolite sales, the Company anticipates, in line with
last year's seasonality, a record fourth quarter sales and profitability.
The Company has entered discussions with an overseas company with a view to a
strategic relationship that will broaden our product portfolio and increase
international distribution. We look forward to updating the market in the near
future on what we believe is a significant milestone for the business.
Peter McGuinness
Chairman and CEO
27th September 2007
Chromogenex plc
Consolidated Income Statement - unaudited
for the period ended 30 June 2007
6 months to 6 months to Year ended
30 Jun 2007 30 Jun 2006 31 Dec 2006
(restated) (restated)
#'000 #'000 #'000
Notes
Revenue 2 2,265 2,074 4,462
Cost of sales (1,519) (1,052) (2,375)
_______ _______ _______
Gross Profit 746 1,022 2,087
Administrative expenses (733) (940) (1,748)
_______ _______ _______
Operating Profit 13 82 339
Interest payable and similar (3) (1) (4)
charges
_______ _______ _______
Profit on ordinary activities
before taxation 10 81 335
Taxation 3 - - -
_______ _______ _______
Profit for the period
attributable to equity 10 81 335
shareholders
_______ _______ _______
Earnings per ordinary shares
(pence)
Basic 4 0.02p 0.14p 0.56p
_______ _______ _______
Fully diluted 4 0.01p 0.12p 0.51p
_______ _______ _______
All results relate to continuing activities.
Chromogenex plc
Consolidated Statement of Changes in Equity - unaudited
for the period eneded 30 June 2007
Attributable to equity holders of the parent company
Share
Share premium Merger Retained Total
capital account reserve Earnings Equity
#'000 #'000 #'000 #'000 #'000
(restated)
At 1 January 2006 592 1,500 (302) 75 1,865
Profit for the - - - 81 81
period
Share option costs - - - 40 40
_______ _______ _______ _______ _______
At 30 June 2006 592 1,500 (302) 196 1,986
Profit for the - - - 254 254
period
Exercise of 13 39 - - 52
warrants
Share option costs - - - 55 55
_______ _______ _______ _______ _______
At 31 December 2006 605 1,539 (302) 505 2,347
Profit for the - - - 10 10
period
Exercise of 4 14 - - 18
warrants
Share option costs - - - 26 26
_______ _______ _______ _______ _______
At 30 June 2007 609 1,553 (302) 541 2,401
_______ _______ _______ _______ _______
Chromogenex plc
Consolidated Balance Sheet - unaudited
as at 30 June 2007
30 Jun 2007 30 Jun 2006 31 Dec 2006
(restated) (restated)
#'000 #'000 #'000
Notes
ASSETS
Non - current assets
Intangible assets 376 314 343
Plant and equipment 56 71 64
_______ _______ _______
432 385 407
Current Assets
Inventory 1,627 1,406 1,245
Trade and other receivables 1,291 1,000 1,226
Cash and cash equivalents 7 168 192 362
_______ _______ _______
3,086 2,598 2,833
LIABILITIES
Current liabilities
Trade and other payables 1,041 943 843
Provisions 76 54 50
_______ _______ _______
1,117 997 893
Net current assets 1,969 1,601 1,940
_______ _______ _______
Total assets less current 2,401 1,986 2,347
liabilities
Non-current liabilities - - -
_______ _______ _______
NET ASSETS 2,401 1,986 2,347
_______ _______ _______
Shareholders' Equity
Share capital 609 592 605
Share premium 1,553 1,500 1,539
Merger reserve (302) (302) (302)
Retained earnings 541 196 505
_______ _______ _______
TOTAL SHAREHOLDERS' EQUITY 2,401 1,986 2,347
_______ _______ _______
Chromogenex plc
Consolidated Cash Flow Statement - unaudited
for the period ended 30 June 2007
Notes 6 months to 6 months to Year ended
30 Jun 2007 30 Jun 2006 31 Dec 2006
(restated) (restated)
#'000 #'000 #'000
Cash flows from operating
activities
Cash used in operations 6 (154) 113 288
Interest paid (3) (1) (4)
_______ _______ _______
Net cash used in operating (157) 112 284
activities
_______ _______ _______
Cash flows from investing
activities
Expenditure on development (33) (161) (190)
Purchase of plant and (22) (36) (61)
equipment
_______ _______ _______
Net cash from investing (55) (197) (251)
activities
_______ _______ _______
Cash flows from financing
activities
Proceeds from issue of shares 18 - 52
_______ _______ _______
Net cash from financing 18 - 52
activities
_______ _______ _______
Net cash (decrease)/increase
in cash and cash equivalents (194) (85) 85
Cash and cash equivalents at
beginning of the period 362 277 277
_______ _______ _______
Cash and cash equivalents at
end of the period 168 192 362
_______ _______ _______
1 BASIS OF PREPARATION AND GOING CONCERN
These financial statements were approved by the board of directors on 26th
September 2007.
These financial statements have been prepared in accordance with International
Financial Reporting Standards ('IFRS'), as adopted by the European Union, and
with those parts of the Companies Act 1985 applicable to companies reporting
under IFRS. In preparing the underlying financial information the Directors have
applied certain first time adoption provisions allowed by IFRS 1. These
standards remain subject to ongoing amendment and / or interpretation and are
therefore still subject to change. Accordingly information contained in these
financial statements may need updating for subsequent amendments to IFRS
required for first time adoption or for new standards issued post balance sheet
date.
The Group has chosen not to adopt IAS 34, 'Interim financial statements' in
preparing its interim statements and therefore the interim financial information
is not in compliance with IFRS.
The Group has established IFRS accounting policies for the period ended 30th
June 2007 and applied these policies and the opening balance sheet at its date
of transition being 1st January 2007. The impact of transition from UK GAAP to
IFRS on Group shareholders' equity as at 31st December 2006 and on the date of
transition of 1st January 2006, and on the Group's income statement for the year
ended 31st December 2006 is outlined in note 7. The impact of transition from UK
GAAP to IFRS on Company shareholders' equity as at 31st December 2006 and on the
date of transition of 1st January 2006 is outlined in note 7. The transition to
IFRS has not affected the company's cash flows.
The preparation of financial statements in accordance with IFRS requires the use
of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the accounting policies. The notes
to the financial statements set out areas involving a higher degree of judgement
or complexity, or areas where assumptions are significant to the financial
statements such as intangible assets. Although these estimates are based upon
management's best knowledge of the amount event or actions, actual results may
ultimately differ from those estimates.
Transitional arrangements
The adoption of the provisions set out in IFRS 1 is set out below.
* Business combinations: a first time adopter may elect not to apply IFRS
3 - 'Business combinations' retrospectively to business combinations that
occurred before the date of transition to IFRS. The Group elected to take
advantage of this exemption, not applying IFRS 3 to the business
combinations that occurred before 31st December 2005 the Group's date of
transition.
* Share-based payments: the Group has applied the requirements of IFRS 2-
'Share-based payments' in accordance with the transitional provisions. IFRS
2 has been applied to all grants of equity instruments after 1st July 2005
that had not vested at 31st December 2005.
The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards.
The interim results are neither audited nor reviewed and do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The figures for the year ended 31 December 2006 were prepared under UK GAAP and
have been reported on by the Company's auditors and have been delivered to the
Registrar of Companies. The auditor's report did not contain any statement under
Section 237(2) or (3) of the Companies Act 1985.
BASIS OF CONSOLIDATION
The consolidated financial information comprise the financial information of
Chromogenex plc and its subsidiary undertakings
INVESTMENTS
Fixed asset investments are stated at cost less provisions against the cost of
investments.
DEPRECIATION
Depreciation is calculated so as to write off the cost of fixed assets, less
their estimated residual values, on a straight line basis over the expected
useful economic lives of the assets concerned. The principal economic lives used
for this purpose are:
Leasehold improvements - over 5 years
Plant and machinery - over 3 to 5 years
INVENTORY
Inventory is valued at the lower of cost and net realisable value. In general
cost is determined on a first in first out basis and includes all direct
expenditure and production overheads based on a normal level of activity. Net
realisable value is the price at which the stocks can be sold in the normal
course of business after allowing for the costs of realisation and where
appropriate for the costs of conversion from its existing state to a finished
condition. Provision is made for obsolete, slow moving and defective stocks.
OPERATING LEASES
Rentals paid under operating leases are charged to the profit and loss account
as incurred.
DEVELOPMENT EXPENDITURE
Development expenditure relating to specific projects intended for commercial
exploitation is capitalised where the ultimate commercial viability has been
assessed with reasonable certainty. Expenditure on pure and applied research,
and development for projects where the long-term commercial viability has not
been established with reasonable certainty is written off as incurred.
PENSION ARRANGEMENTS
The group operates a Group Personal Pension Scheme for its employees. The charge
against profits represents the contributions payable to the pension scheme in
respect of the accounting period. The assets of the pension scheme are held
separately from those of the group.
FOREIGN CURRENCIES
Foreign currency assets and liabilities are converted to sterling at the rates
of exchange ruling at the end of the financial year. Transactions in foreign
currencies are converted to sterling at the rates of exchange ruling at the
transaction date. All of the resulting exchange differences are recognised in
the profit and loss account as they arise.
HIRE PURCHASE AGREEMENTS
Assets held under hire purchase agreements are capitalised and disclosed under
tangible fixed assets at their fair value. The capital element of the future
payments is treated as a liability and the interest is charged to the profit and
loss account at a constant rate of charge on the balance of capital repayments
outstanding.
SHARE BASED PAYMENTS
In accordance with FRS 20 - 'Share based payments', a charge is made for all
share -based payments including share options based upon the fair value of the
instrument issued.
Under FRS 20 the charge in the Profit and Loss Account for granted share options
is based upon the fair value of the options at grant date and is charges over
the expected vesting period. Estimates of leaver rates are taken into account
over the vesting period. A charge has been recognised for all awards granted and
is charged to the same expense category as the remuneration costs for the
employee to whom the share award has been made. An equivalent amount is credited
to the retained profit and loss reserve in the balance sheet, with no resulting
impact on net assets.
2 SEGMENTAL ANALYSIS
All revenue, losses and net assets are derived from the group's principal
activity being the design, manufacture and distribution of aesthetic therapeutic
laser and aesthetic light based technology devices and related products, which
for management purposes is currently organised into one operating division.
The geographical analysis of revenue (being the primary segment) by destination
is as set out below:
6 months to 6 months to Year ended
30 June 30 June 31 December
2007 2006 2006
(restated) (restated)
REVENUE #'000 #'000 #'000
United Kingdom 353 586 1,162
Rest of the World 1,912 1,488 3,300
----- ----- -----
2,265 2,074 4,462
===== ===== =====
3 TAXATION
There was no taxation charge or credit in the year ended 31 December 2006 or the
periods ended 30 June 2006 or 2007.
4 EARNINGS PER ORDINARY SHARE
The earnings per ordinary share has been calculated using the profit for the
year and the weighted average number of ordinary shares in issue during the year
as follows:
30 Jun 2007 30 Jun 2006 31 Dec 2006
(restated) (restated)
#'000 #'000 #'000
Profit for the period 10 81 335
attributable to equity
shareholders
_______ _______ _______
No. No. No.
'000 '000 '000
Basic weighted average of
ordinary shares of 1p each) 60,818 59,188 59,519
_______ _______ _______
Basic earnings (pence per 0.02 0.14 0.56
share)
_______ _______ _______
Fully diluted earnings
(pence per share 0.01 0.12 0.51
_______ _______ _______
The weighted average number of shares for the calculation of diluted earnings
per share at 30 June 2007 was 65,470,377 (31 December 2006: 65,349,352, 30 June
2006: 66,715,900) reflecting the unexercised share options and warrants in
place.
5 SHARE BASED PAYMENTS
The following share warrants were exercised at 4p per share during the period to
30th June 2007.
5th February 2007 375,000
1st May 2007 62,500
6 RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM OPERATING ACTIVITIES
30 Jun 2007 30 Jun 2006 31 Dec 2006
(restated) (restated)
#'000 #'000 #'000
Operating profit 13 82 339
Depreciation 30 42 74
Increase in inventory (382) (187) (26)
Increase in trade and other (65) (122) (348)
receivables
Increase/(decrease) in
trade and other payables 224 258 154
Share option costs 26 40 95
_______ _______ _______
Net cash flow from
operating activities (154) 113 288
_______ _______ _______
7 RECONCILIATION OF NET ASSETS AND LOSS UNDER UK GAAP TO IFRS
Chromogenex plc reported under UK GAAP in its previously published financial
statements for the year ended 31st December 2006. The analysis below shows the
reconciliation of profit and net assets as reported under UK GAAP as at 31st
December 2006 and the revised net assets and profit under IFRS as reported in
these financial statements. In addition there is a reconciliation of equity
under UK GAAP to IFRS at the transition date for the Group being 1st January
2006.
Group Reconciliation of loss for the year
30 Jun 2006 31 Dec 2006
#'000 #'000
Profit for the year reported under 236 493
GAAP
Adjustments
- Amortisation of negative (155) (158)
goodwill
_______ _______
Profit for the year reported 81 335
under IFRS
_______ _______
Group Reconciliation of shareholder's equity
31 Dec2005 30 Jun 2006 31 Dec 2006
#'000 #'000 #'000
Shareholder's equity
reported under 1,707 1,983 2,347
GAAP
Adjustments
- Amortisation of negative 158 3 -
goodwill
_______ _______ _______
Shareholders' equity for the
year reported under IFRS 1,865 1,986 2,347
_______ _______ _______
RECONCILIATION OF NET ASSETS AND LOSS UNDER UK GAAP TO IFRS
(continued)
In accordance with IFRS 3 negative goodwill as at 1st January 2006 amounting to
#158,000 has been written back to Retained Earnings as at that date. The
amortised goodwill credited to the Profit and Loss account in the periods ending
30th June 2006 and 31st December 2006 has also been written back.
8 Chromogenex plc is a public limited company incorporated in the United Kingdom
under Companies Act 1985. This company is domiciled in Wales and its ordinary
shares are traded on AIM.
9 COPIES OF THE INTERIM REPORT
Copies of the interim report have been sent to shareholders and are available
from the company secretary at the company's registered office - Units 1 and 2,
Heol Rhosyn, Parc Dafen, Llanelli, Carmarthenshire, SA14 8QG.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LFMRTMMJTBTR
Chromogenex (LSE:CGX)
Historical Stock Chart
From May 2024 to Jun 2024
Chromogenex (LSE:CGX)
Historical Stock Chart
From Jun 2023 to Jun 2024
