TIDMHVO
RNS Number : 7115V
hVIVO plc
20 April 2016
For immediate release 07:00: 20 April 2016
HVIVO PLC
("hVIVO" or the "Company")
AUDITED PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2015
hVIVO plc (AIM: HVO), the pioneer of human disease models, is
pleased to announce its audited preliminary results for the year
ended 31 December 2015.
Financial Highlights
-- Revenue of GBP7.7 million (2014: GBP18.5 million) is
consistent with expectations communicated in November 2015, due to
the slower re-build of client engagements and PrEP Biopharm licence
arrangements deferring revenue recognition to completion in
2016
-- Gross profit of GBP2.5 million and gross profit margin of
31.8% (2014: gross profit GBP5.5 million and gross profit margin
29.6%)
-- Research and development expense was GBP10.2 million (2014:
GBP10.7 million) reflecting ongoing commitment to discovery
research and product validation capabilities and programmes
-- Administrative expenses were GBP13.7 million (2014: GBP17.7
million) with the reduction primarily due to efficiently managing
our resources
-- Completed successful fundraising during the year raising
GBP20.5 million before expenses (2014: GBP33.6 million before
expenses)
-- Strong financial position with short-term deposits, cash and
cash equivalents of GBP51.2 million at 31 December 2015 (2014:
GBP50.8 million)
Operational Highlights
-- Made a significant equity investment in PrEP Biopharm Limited
with its flagship prophylactic compound PrEP-001, a compound in
which the hVIVO platform played a fundamental role in its
progression to-date
-- Progressed PrEP-001 Phase II clinical studies in flu, asthma
and durability with first readouts expected by end of H1 2016
-- Produced first Pathomics map of host response in flu
-- Completed severe flu drug target qualification, enabling
hVIVO's progression from pre-discovery to productisation in less
than a year
-- Launched asthma model using our calibration process,
establishing a new gold standard and beginning our first product
validation study for asthma in 2016, less than a year after
initiation
-- Obtained ethics approval for landmark study to collect human
samples, stratify asthma, and begin work to identify patterns from
human sample data, connecting digital and biological data to define
disease "algorithms" for asthma disease management
-- Expanded our services and licensing options to explore
collaborations and equity investments as we partner with
pharmaceutical and biotechnology companies to accelerate drug
development
Commenting on today's results, Kym Denny, Chief Executive
Officer, said:
"2015 saw hVIVO complete its first major transaction following
its significant investment in the equity of PrEP Biopharm Limited,
positioning hVIVO to share in the substantial upside of a product,
PrEP-001, that our platform is helping to develop. I am delighted
to report that the PrEP-001 programme is progressing at a hVIVO
accelerated pace, with first study results anticipated less than
eight months from deal signature. In making this transition to
vested owner, the accounting technicalities impacted our revenue
recognition of the PrEP Biopharm licence arrangements until
completion in 2016, resulting in lower than expected revenues for
2015. Cash was up as of 31 December 2015, as a result of our
successful GBP20.5 million fundraise in November 2015. We are very
pleased to inform our investors that as an outcome of their
continued support and encouragement, we recently achieved a pivotal
milestone in April 2016 with the qualification of our severe flu
pathway components, paving the way for productisation to begin in
2016. This, in conjunction with our landmark work in asthma
stratification, underlines the value of the hVIVO platform in
taking the guesswork out of biology to streamline drug
development."
For further information please contact:
hVIVO plc +44 207 756 1300
Kym Denny (CEO)
Graham Yeatman (Chief Financial & Business Officer)
Media Enquiries +44 203 021 3933 / +44 7854 979 420
Colin Paterson (Director of Marketing, Communication and PR)
Numis Securities Limited +44 207 260 1000
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black / Michael Burke (Corporate Broking)
Notes to Editors:
hVIVO plc ("hVIVO") is a life sciences company pioneering a
technology platform of human disease models to accelerate drug
discovery and development in respiratory and infectious diseases,
including flu, RSV, asthma and common cold. hVIVO has
commercialised four disease models, successfully enrolled over
2,000 subjects and conducted over 40 product validation studies for
a wide range of industry, government and academic clients and
collaborators.
CHIEF EXECUTIVE OFFICER'S STATEMENT
2015 was a year of achievement and evolution for hVIVO. hVIVO
acquired a significant equity stake in PrEP Biopharm Limited ("PrEP
Biopharm") a new UK biotech company with its prophylactic compound
PrEP-001, a compound where hVIVO's platform has been a fundamental
contributor to its success to date. This allows hVIVO, for the
first time, to participate in the upside value generated by the
product insights our platform provides. We are leveraging the
platform's speed of conduct for early phase research and
application of its biological insights to simplify later phase
studies - further enhancing PrEP-001's potential going forward.
2015 also saw another significant first for the company, with
hVIVO delivering the first map describing the human response to
flu. Even more noteworthy than gaining this proprietary biological
insight was the speed at which we were able to turn our insight
into action: we progressed to drug target qualification in less
than one year, which represents a staggering 90% reduction on
traditional pre-discovery timelines. Such timeline compression was
made possible due to the very heart of our organisation: the
profound 'disease in motion' samples that our platform
generates.
Buoyed by the results of our flagship 'pathomics' map in flu, in
2015 we expanded our capabilities into respiratory diseases,
starting with asthma. We have since commenced work on a
groundbreaking sample collection initiative that will enable asthma
patient stratification and benchmarking of targeted therapies for
the first time. In 2015 we began building hVIVO's commercial
infrastructure to fuel our innovative product efforts and support
new, more collaborative client relationships. The year finished
with a successful capital raise in November 2015 to support our
building momentum in asthma, flu and PrEP-001 product development.
Thus, 2015 was a corner-turning year for hVIVO, one in which we
begin to take the guesswork out of biology by illuminating the
right targets and biomarkers for more streamlined and
cost-effective drug development, positioning us to participate in
the upside our insight creates as an equity stakeholder.
This human-based approach has not only fuelled our research, it
has enabled our platform as a benchmarking tool. During the past
five years, data from the hVIVO platform has underpinned the
progress of a number of our clients' drugs. Several of these
products were the foundation for nearly $2 billion in M&A
transactions in the infectious disease sector. The success of three
of these drugs resulted in the sale of entire companies, the
largest of which was Janssen's acquisition of Alios. Indeed,
Johnson & Johnson said publicly that two of hVIVO's client
drugs, AL 8176 for respiratory syncytial virus (RSV) and JNJ-872
(VX-787) for influenza A, were "expected to drive growth in the
next several years."
hVIVO platform in motion: PrEP-001
Two years ago, hVIVO conducted a proof of concept study for
Janssen using the hVIVO platform. This study demonstrated that
Janssen's compound (now renamed PrEP-001) achieved a threefold
reduction in clinical illness and an eightfold reduction in common
cold symptoms compared with a placebo. With these promising
results, we saw tremendous commercial potential for PrEP-001.
Working with the other main PrEP Biopharm investors, which include
Johnson & Johnson Innovation-JJDC Inc and the founders of PrEP
Biopharm, we executed the PrEP Biopharm transaction in short order,
completing it on 1 November 2015. From summer 2015, hVIVO commenced
the complex clinical trial start up activities in order to target
positioning of PrEP-001 for field Phase IIb by the end of 2016; and
just over a year from completion of the PrEP Biopharm
transaction.
Our investment in PrEP Biopharm with its compound PrEP-001 gives
hVIVO the powerful opportunity to showcase the value of the hVIVO
platform in predicting a drug's future success in field studies. In
the laboratory-like setting of our platform during 2015 and 2016,
we are answering as many human-specific questions as we can to best
position PrEP-001 to succeed in its field-based trials. These
questions form the raison d'être behind the three PrEP-001 clinical
studies we are currently conducting:
-- Does PrEP-001 also work in flu?
-- How long does the drug's effect last?
-- Does it prevent colds in asthmatics, thereby reducing their
chances of asthma exacerbation?
It seems obvious that one would want to answer these questions
early in product development, but the nature of the patient
populations and the lack of understanding of our body's response to
viruses makes the development pathway complex and costly, and such
questions historically could only be answered in large field based
studies. By answering these questions in the hVIVO platform, the
eventual field work can be fine-tuned, reducing the risk of aiming
at the wrong patient population or indication in expensive field
studies.
Defining severe flu levers and dials
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April 20, 2016 02:00 ET (06:00 GMT)
One of the key hurdles in today's drug development paradigm is
the difficulty of mapping the underlying mechanics of disease: to
identify root causes and define the levers that affect development.
This critical step typically takes more than ten years. But with
our innovative human-based approach, we will have completed the
pre-discovery phase in flu in under one year's time - reducing the
duration by 90%.
In analysing the samples acquired during our studies, we have
the unique opportunity not only to observe disease in motion but
also to monitor and check the wiring in the body's circuitry, or
"pathomics" - a term we coined to describe this approach. Pathomics
is a combination of "pathways," or signalling networks, and
"omics," the collective technologies used to explore the various
types of molecules that make up the cells of an organism. Pathomics
involves data mining and analysis, "disease-in-motion" sample
acquisition, product validation and disease research. We use these
techniques to elucidate and define the most influential signalling
human pathways that underpin the host response. We are in essence,
providing a biological global positioning system (GPS) to define
the key components that are directly involved in human disease,
including drug targets and biomarkers.
In early 2015 we completed the first ever pathomics map of the
human response to flu infection and then built out the critical
pathways for severe flu. Initially, we charted biomarkers in those
patients who contracted flu and returned to health after a few
days. From there, we studied samples from patients with severe flu
to complete the seminal task of identifying the biological "tipping
point" when flu becomes severe. Knowing the tipping point is
crucial, as it enables us to rationally select drug targets and
essential predictive biomarkers. I am immensely pleased and proud
to say that we have very recently completed our qualification
process to determine drug targets, pathway biomarkers and disease
activity biomarkers. This is a pivotal moment for us, as we are now
positioned to advance our discoveries into candidate status in
2016, with products that could include drugs to treat flu,
biomarker tests to guide clinical product development, and
predictive tests to identify flu susceptibility and patients at
risk of severe flu.
Delivering the next gold standard: Asthma
When hVIVO began working with respiratory syncytial virus (RSV),
it was not a well-understood disease. We defined and calibrated a
disease model that has now become the gold standard. Two different
landmark studies conducted by hVIVO with Alios and Gilead for RSV
therapies were both published in the highly respected New England
Journal of Medicine. Given this success, we are using the same
approach to develop new models for respiratory diseases, starting
with asthma.
Asthma is a complex disease that affects more than 300 million
people worldwide and, like flu and colds, asthma has no effective
cure. It is comprised of subgroups with differing characteristics
and potentially different therapeutic demands. This year, hVIVO
achieved a significant milestone with the official release of our
human model of viral-induced asthma exacerbation.
As we did with RSV, we first ran initial "calibration" studies
to develop the model's product specifications (i.e. endpoints,
recruitment rates, trial design) to ready the model for release.
This coming year, we will be conducting ground-breaking research in
moderate to severe asthma patients, collecting and analysing
samples to define asthma patient subtypes and identify disease
mechanisms. These results will provide hVIVO, for the first time,
the ability to stratify patients and benchmark targeted therapies -
eliminating the mass numbers and uncertainties inherent in today's
asthma trials. In addition, our ability to collect and analyse
samples to identify patterns of association offers a compelling
opportunity to connect biology and digital data to design powerful
disease algorithms, and work is ongoing in 2016 in this area.
November 2015 Fundraise
Our aspirations to advance our key programmes for PrEP-001,
asthma and severe flu were highlighted during our November 2015
fundraise. Throughout the process we experienced tremendous support
and excitement and were delighted to raise GBP20.5 million from
existing shareholders. These funds will be principally used by
hVIVO to progress PrEP-001 to Phase IIb field studies, commence the
stratification of asthma and advance the flu pathomics outputs into
product candidates.
The PrEP Biopharm transaction signals that the hVIVO platform
has successfully evolved to a comprehensive drug discovery and
development platform with both services and product development
engine capabilities, enabling hVIVO to exploit the power and value
generation of its human disease models. hVIVO strives to 'get the
biology right from the start'. We leverage our insight to produce
the right drugs and to reduce the time, cost and complexity of
clinical development itself. This approach enables hVIVO to turn
biological verification on its head and position our platform early
on in a product's lifecycle, rather than waiting until the final
human testing phase (Phase III) to confirm the right targets and
biomarkers have been selected.
We have reached the next chapter in the evolution of the hVIVO
platform, where we now seek to achieve a balance of client
engagements (generating revenue, gross profit and contribution to
cash flow) with investments such as PrEP Biopharm and our own
internal R&D engagements, to maximise the utilisation of our
resources, together with cost efficiency driving value creation for
shareholders.
Commercial evolution
The commonality in our accomplishments in 2015 was the
strengthening of the hVIVO platform and its state-of-the-art market
position for revolutionising R&D. None of our foundation
setting for the future would have been possible without the
tremendous progress we have made in advancing our research methods
and fine-tuning our results. hVIVO has shown - and continues to
demonstrate - the incredible value that is inherent in using
human-derived data in both the pre-discovery phase and in
early-stage clinical trials.
Given our unique status as the only commercial provider of
multiple human disease models, hVIVO is poised to explore potential
collaborations and equity investments. We have made a strategic
decision to partner with pharmaceutical and biotech companies and
help them accelerate the drug discovery and commercialisation
process. We can help clients with their drugs in flight with our
service business, and then with our proprietary pathomics
biological insights and knowledge. We are able to do this both with
drugs that are currently in development and those that were
previously shelved, in order to reposition them for new commercial
opportunities. We can also help clients identify the drugs of the
future. As such, we are continuing to expand our services and
licensing options through collaborations and equity investments
with select customers and products. Ultimately, we believe these
collaborations will drive increased shareholder value.
Corporate leadership
As hVIVO continues to grow and evolve, so does our corporate
leadership at the Board level. I am pleased to announce that Mark
Warne has joined the hVIVO Board as a Non-Executive Director on 19
April 2016. Mark brings a wealth of technology commercialisation
experience to guide hVIVO into its next chapter of product
development and value creation. He is Head of IP Group's Healthcare
division which at the end of December 2015 had shareholdings in 31
companies valued at over GBP275 million. He also represents IP
Group plc on the boards of a number of its portfolio companies,
both quoted and private. Mark Warne has been at IP Group since 2008
and has extensive experience in building world-changing healthcare
businesses as well as in managing transactions including portfolio
company IPOs, financings and M&A.
As we welcome Mark onto the Board, two of our valued board
members will be retiring by rotation at our Annual General Meeting
and not seeking reappointment. While Dave Norwood, who was
appointed Chairman of the Board in 2011 and served in that capacity
until 2014, will be retiring at our May 2016 AGM as a Non-Executive
Director, he will continue to support hVIVO as a strategic
consultant. Dave has played a pivotal role in crafting the hVIVO
vision and business strategy since 2011, along with providing
stewardship as a Director. In his new role as a consultant to
hVIVO, he will continue to support me and the Board in the
development of our strategy and our investor relations, and I am
delighted to continue to work with him in this capacity. Also
retiring at our May AGM is Ali Fielding, who has served as
Non-Executive Director of hVIVO since July 2014. Ali has been an
inspiration to me for many years, with a wealth of experience
building high performance companies, and I am deeply grateful for
all her guidance and support in helping hVIVO navigate the
complexities of evolving into a products-based organisation. I
would like to thank both Dave and Ali for serving on the Board and
for helping to steer hVIVO's evolution on our journey to
revolutionise drug development by putting humans at the heart of
discovery.
Outlook
(MORE TO FOLLOW) Dow Jones Newswires
April 20, 2016 02:00 ET (06:00 GMT)
During the past two years we have made rapid progress in
advancing the hVIVO platform to start realising its massive
potential and value, culminating in our investment in 2015 in PrEP
Biopharm with its flagship product PrEP-001. This landmark
achievement speaks to the strategic goals and capabilities of
hVIVO: leveraging biological insights to create better treatments
faster. As evidence of the value of this approach, we have already
made enormous strides since we last visited our investors in
November 2015: we have completed the qualification phase of our flu
drug targets and biomarkers, completed the patient phase of the
PrEP-001 flu study and started it for the other two PrEP-001
studies, and we have received ethics approval for our asthma sample
collection protocol, which allows us to start collecting those
tremendously valuable and insightful samples in 2016.
We achieved qualification of our severe flu pathway components
more than nine years faster than the traditional pre-discovery
process. We have defined, for the first time, severe flu disease
process and pathways at a molecular level by comparing healthy and
severe samples to benchmark significant pathophysiological changes
in severe flu. We assembled an impressive data package informing
what biomarkers and drugs we should develop for identifying and
treating those at risk for severe flu, as well as indicating those
patients who are recovering after receiving therapy. Given the
symbiotic relationship of our biomarkers being used to support
target qualification, we anticipate being able to develop multiple
products from this programme. We also anticipate this extensive
knowledge will help promote a smoother and faster regulatory
approval process. We are excited to officially commence our
commercialisation journey for these revolutionary discoveries,
thanks to the strong and widespread support from our investors.
The PrEP-001 studies are quickly progressing, with our initial
results expected in first half of 2016. We have successfully
enrolled and completed the flu study and are in the data analysis
process as I write. In addition we have kicked off the PrEP-001
'durability' (dose duration) and asthma studies and remain on track
to position PrEP-001 for field Phase IIb studies by the end of
2016, with the durability study also being hVIVO's first ever
outpatient study. Meeting this objective will condense the
traditional drug development timeline of over two years to just
over a single year.
In 2015, hVIVO sought shareholder endorsement to push forward
with our efforts to transform asthma management by better
understanding the biology, which culminated in our GBP20.5 million
fundraise in November 2015. Since then, we have developed,
submitted and received ethics approval on the landmark study that
will allow us to collect samples to stratify asthma. Work will be
ongoing in 2016 and 2017. In 2016 we commenced our first
investigational drug product validation study using our asthma
model, paramount to beginning the exciting journey and market
adoption similar to RSV.
Our rapid evolution and game-changing accomplishments in the
past year set the stage for a dynamic 2016 and beyond. Our pivotal
achievements of 2015 build a solid foundation for the future and
could not have been attained without the hard work of our entire
team, our volunteers, and your continuing invaluable support as
shareholders. Thank you.
Kym Denny
Chief Executive Officer
19 April 2016
FINANCIAL REVIEW
This year saw a rapid evolution of hVIVO as we leveraged the
hVIVO platform's novel biological insights in flu to reach target
qualification in under a year, and launched our first human disease
model in respiratory diseases for asthma. The Company's investment
in PrEP Biopharm allowed hVIVO to obtain a significant stake in a
new company developing a product that is well placed to transition
into later phase trials in at-risk patient groups. During the past
five years, hVIVO's platform has helped the forward progression of
multiple drugs. Our human-centered approach enables clients to
benchmark their therapies and remove biology guesswork, helping
them reduce drug development time and costs.
The November 2015 fundraise provided shareholder support and
allowed hVIVO to further utilise the skills, resources and
expertise that it has developed over the last two years, to build
out bioinformatics analysis and disease stratification capabilities
as hVIVO works to identify novel biomarkers and drug targets in
areas of high unmet medical need.
Financial KPIs 2015 2014
------------------------------------------------ ----------- -----------
Revenue GBP7.7m GBP18.5m
Gross profit GBP2.5m GBP5.5m
Gross profit margin 31.8% 29.6%
Research and development expense GBP10.2m GBP10.7m
Administrative expense GBP13.7m GBP17.7m
Loss for the year GBP(17.9)m GBP(18.4)m
Short-term deposits, cash and cash equivalents GBP51.2m GBP50.8m
------------------------------------------------ ----------- -----------
Revenue
Revenue for the year ended 31 December 2015 was GBP7.7 million
(2014: GBP18.5 million) and is consistent with expectations
communicated in November 2015, due to the slower re-build of client
engagements and PrEP Biopharm licence arrangements deferring
revenue recognition to completion in 2016.
Under the terms of the PrEP Biopharm transaction, PrEP Biopharm
contracted with hVIVO Services Limited for the delivery of hVIVO
owned intellectual property in flu and asthma under licencing
arrangements and also to conduct a Phase II durability study for a
total consideration of GBP10.0 million. hVIVO commenced its
programme of work in September 2015 and the programme was well
progressed by the 2015 year end. As a consequence of flu and asthma
being under licence arrangements, the revenue and costs
attributable to this work will be accounted for on a "completed"
basis in 2016 rather than on a "work done" basis, as is currently
the case for the revenue recognition of hVIVO's standard clinical
trials agreements with clients. The programme of work is forecasted
to complete during 2016 and revenue of GBP10.0 million recognised
in full by the 2016 year end.
Research and development expense
The Group's research and development expenses totalled GBP10.2
million (2014: GBP10.7 million). This reflects hVIVO's continued
investment in discovery research and product validation
capabilities and in particular disease research (pathomics), data
mining and analysis, sample acquisition and product validation
processes.
Administrative expense
Administrative expenses were GBP13.7 million (2014: GBP17.7
million). The reduction is primarily due to managing the efficiency
of our resources, restructuring our operations and implementing
cost saving initiatives during the period. Administrative expense
in 2015 included GBP1.0 million of leasehold provisions (2014:
GBP3.7 million of leasehold provisions and impairments).
Taxation
The Group makes claims each year for research and development
tax credits and, since it is loss-making, elects to surrender these
tax credits for a cash rebate. The amount credited to the
consolidated statement of comprehensive income with respect to
amounts received and receivable for the surrender of research and
development expenditure was GBP3.7 million for the year ended 31
December 2015 (2014: GBP3.9 million).
Consolidated statement of financial position
As of 31 December 2015, total assets less liabilities amounted
to GBP63.6 million (2014: GBP61.2 million) including short-term
deposits of GBP37.0 million (2014: GBP28.0 million) and cash and
cash equivalents of GBP14.2 million (2014: GBP22.8 million).
The principal movements in the consolidated statement of
financial position during the year are summarised below:
-- acquisition of equity in PrEP Biopharm of GBP14.4 million
which includes GBP0.4 million of transaction costs;
-- recognition of a current intangible asset of GBP2.9 million
relating to flu and asthma licence arrangements;
-- increase in short-term deposits of GBP9.0 million;
-- decrease in cash and cash equivalents of GBP8.6 million; and
-- increase in current trade and other payables of GBP12.9
million, which includes GBP5.0 million relating to deferred
consideration for the acquisition of PrEP Biopharm equity paid in
January 2016.
Cash flow
The principal cash flows in the year were as follows:
Inflows
-- net proceeds on issue of shares of GBP20.2 million (2014: GBP32.8 million); and
-- finance income of GBP0.4 million (2014: GBP0.4 million).
Outflows
-- cash outflow from operating activities of GBP9.8 million (2014: GBP16.6 million);
-- purchase of property, plant and equipment of GBP0.9 million (2014: GBP1.4 million); and
-- payment for equity investment in PrEP Biopharm of GBP9.4
million, inclusive of GBP0.4 million of transaction costs (deferred
consideration of GBP5.0 million paid in January 2016).
Key performance indicators
The Directors consider the principal financial performance
indicators of the Group to be:
-- revenue;
-- gross profit;
-- gross profit margin;
-- research and development expense;
-- administrative expense;
-- net profit or loss; and
-- short-term deposits, cash and cash equivalents.
The Directors consider the principal non-financial performance
indicators of the Group to be:
-- the expansion of the hVIVO platform and its increasing
acceptance by global pharmaceutical companies and regulatory
agencies;
-- development of new human disease models;
-- research and development in other disease areas including asthma;
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-- development of intellectual property from our discovery
research and product validation capabilities and, in particular,
disease research (pathomics), data mining and analysis, sample
acquisition and product validation processes; and
-- collaboration opportunities with global pharmaceutical companies.
These elements are discussed within the Chief Executive
Officer's statement.
Graham Yeatman
Chief Financial & Business Officer
19 April 2016
hVIVO plc
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2015
2015 2014
Note GBP'000 GBP'000
---------------------------------------------------------------------------- ----- ----------- ---------
Revenue 7,717 18,472
Cost of sales (5,266) (12,999)
---------------------------------------------------------------------------- ----- ----------- ---------
Gross profit 2,451 5,473
Other income 1,187 -
Research and development expense (10,199) (10,733)
Provision against virus inventory 9 (1,617) (58)
Administrative expense (13,671) (17,730)
Share of loss of associate 8 (146) -
---------------------------------------------------------------------------- ----- ----------- ---------
Loss from operations (21,995) (23,048)
Finance income 387 358
Finance costs (17) (15)
---------------------------------------------------------------------------- ----- ----------- ---------
Loss before taxation (21,625) (22,705)
Taxation 3 3,716 4,269
---------------------------------------------------------------------------- ----- ----------- ---------
Loss for the year (17,909) (18,436)
---------------------------------------------------------------------------- ----- ----------- ---------
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Share of other comprehensive income of associate (5) -
Exchange differences arising on translating foreign operations 1 -
Total comprehensive loss for the year attributable to owners of the parent (17,913) (18,436)
---------------------------------------------------------------------------- ----- ----------- ---------
Loss per share - basic (pence) 4 (26.0p) (31.3p)
Loss per share - diluted (pence) 4 (26.0p) (31.3p)
---------------------------------------------------------------------------- ----- ----------- ---------
All activities relate to continuing operations.
hVIVO plc
Consolidated Statement of Financial Position
As at 31 December 2015
2015 2014
Note GBP'000 GBP'000
Assets
Non-current assets
Goodwill 5 1,722 1,722
Intangible assets 6 3,030 3,333
Property, plant and equipment 7 2,679 3,153
Investment in associate 8 14,254 -
------------------------------------- ----- --------- ---------
21,685 8,208
------------------------------------- ----- --------- ---------
Current assets
Inventories 9 2,141 3,731
Current intangible asset 10 2,935 -
Trade and other receivables 11 2,642 2,904
Research and development tax credit
receivable 4,101 3,806
Short-term deposits 12 37,031 28,007
Cash and cash equivalents 13 14,205 22,826
------------------------------------- ----- --------- ---------
63,055 61,274
------------------------------------- ----- --------- ---------
Total assets 84,740 69,482
------------------------------------- ----- --------- ---------
Equity and liabilities
Equity
Share capital 3,903 3,383
Share premium account 93,145 72,498
Share-based payment reserve 144 249
Merger reserve 4,199 4,199
Other reserve 211 921
Retained deficit (37,979) (20,066)
------------------------------------- ----- --------- ---------
Total equity 63,623 61,184
------------------------------------- ----- --------- ---------
Non-current liabilities
Other payables 15 475 550
Provisions 16 3,140 3,130
------------------------------------- ----- --------- ---------
3,615 3,680
------------------------------------- ----- --------- ---------
Current liabilities
------------------------------------- ----- --------- ---------
Trade and other payables 14 17,502 4,618
------------------------------------- ----- --------- ---------
17,502 4,618
------------------------------------- ----- --------- ---------
Total liabilities 21,117 8,298
------------------------------------- ----- --------- ---------
Total liabilities and equity 84,740 69,482
------------------------------------- ----- --------- ---------
hVIVO plc
Consolidated Statement of Changes in Equity
For the year ended 31 December 2015
Share Share Merger Other Retained Total
capital premium reserve reserve deficit equity
account
GBP'000 GBP'000 Share-based GBP'000 GBP'000 GBP'000 GBP'000
payment
reserve
GBP'000
----------------------------------------- -------- --------- ------------ -------- -------- --------- ---------
As at 31 December 2013 2,686 37,363 239 4,199 - (1,630) 42,857
Proceeds from shares issued:
Acquisition of subsidiary 50 2,987 - - 921 - 3,958
Issue of new shares - 15 - - - - 15
Placing net of related expenses 647 32,133 - - - - 32,780
----------------------------------------- -------- --------- ------------ -------- -------- --------- ---------
Total transactions with owners in their
capacity as owners 697 35,135 - - 921 - 36,753
Loss for the year - - - - - (18,436) (18,436)
Share-based payment expense - - 10 - - - 10
----------------------------------------- -------- --------- ------------ -------- -------- --------- ---------
As at 31 December 2014 3,383 72,498 249 4,199 921 (20,066) 61,184
Proceeds from shares issued:
Acquisition of subsidiary - settlement
of deferred consideration 11 699 - - (710) - -
Exercise of warrants and share options 52 360 (183) - - - 229
Issue of new shares 1 67 - - - - 68
Placing net of related expenses 456 19,521 - - - - 19,977
----------------------------------------- -------- --------- ------------ -------- -------- --------- ---------
Total transactions with owners in their
capacity as owners 520 20,647 (183) - (710) - 20,274
Loss for the year - - - - - (17,909) (17,909)
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Exchange differences on translation of
foreign assets - - - - - (4) (4)
Share-based payment expense - - 78 - - - 78
----------------------------------------- -------- --------- ------------ -------- -------- --------- ---------
As at 31 December 2015 3,903 93,145 144 4,199 211 (37,979) 63,623
----------------------------------------- -------- --------- ------------ -------- -------- --------- ---------
hVIVO plc
Consolidated Statement of Cash Flows
For the year ended 31 December 2015
2015 2014
Note GBP'000 GBP'000
---------------------------------------------------- --------- ---------
Net cash used in operating activities 17 (9,846) (16,599)
Cash flows from investing activities
Acquisition of intangible assets (15) (148)
Acquisition of property, plant and
equipment (869) (1,355)
Increase in balances on short-term
deposit (9,024) (5,507)
Investment in associate (9,405) 67
Interest received 398 361
------------------------------------------------ --- --------- ---------
Net cash used in investing activities (18,915) (6,582)
Cash flows from financing activities
Net proceeds from issue of shares 20,205 32,780
Other payables repaid (75) (75)
------------------------------------------------ --- --------- ---------
Net cash generated from financing activities 20,130 32,705
------------------------------------------------ --- --------- ---------
Net (decrease)/increase in cash and
cash equivalents (8,631) 9,524
Exchange gain/(loss) on cash and cash
equivalents 10 (8)
Cash and cash equivalents at the start
of year 22,826 13,310
------------------------------------------------ --- --------- ---------
Cash and cash equivalents at the
end of year 14,205 22,826
----------------------------------------------- ---- --------- ---------
The accompanying notes are an integral part of the consolidated
statement of cash flows.
hVIVO plc
Notes to the Consolidated Financial Statements
1. Basis of the announcement
The audited preliminary results for the year ended 31 December
2015 were approved by the Board of Directors on 19 April 2016. The
preliminary results do not constitute full accounts within the
meaning of section 434 of the Companies Act 2006 but are derived
from accounts for the year ended 31 December 2015 and year ended 31
December 2014.
The preliminary announcement is prepared on the same basis as
set out in the statutory accounts for the year ended 31 December
2015. Those accounts upon which the auditors issued an unqualified
opinion, also had no statement under section 498(2) or (3) of the
Companies Act 2006.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting
Standards, as adopted by the European Union (EU) (IFRS), this
announcement does not in itself contain sufficient information to
comply with IFRS.
The Company is a limited liability company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by The London Stock Exchange. The
consolidated financial information of hVIVO plc is presented in
pounds Sterling (GBP). The individual financial statements of hVIVO
plc is presented in pounds Sterling (GBP) which is the Company's
functional currency. For the purpose of the consolidated financial
statements, the results and financial position of each Group
company are expressed in pounds Sterling.
The statutory accounts for the financial year ended 31 December
2015 will be delivered to the
Registrar of Companies following the Company's Annual General
Meeting.
Going concern
In determining the basis for preparing the financial statements,
the Directors are required to consider whether the Company can
continue in operational existence for the foreseeable future, being
a period of not less than twelve months from the date of the
approval of the financial statements. As at 31 December 2015 the
Group had short-term deposits, cash and cash equivalents of GBP51.2
million (2014: GBP50.8 million) and net current assets of GBP45.6
million (2013: GBP56.7 million).
Management prepares detailed working capital forecasts which are
reviewed by the Board on a regular basis. The forecasts include
assumptions regarding the status of client engagements and sales
pipeline, future revenues and costs together with various scenarios
which reflect growth plans, opportunities, risks and mitigating
actions. The forecasts also include assumptions regarding the
timing and quantum of investment in the Group's research and
development programme. Whilst there are inherent uncertainties
regarding the cash flows associated with the development of the
hVIVO platform, together with the timing of signature and delivery
of client engagements, the Directors are satisfied that there is
sufficient discretion and control as to the timing and quantum of
cash outflows to ensure that the Company and Group are able to meet
their liabilities as they fall due for the foreseeable future.
As part of its going concern review the Board has followed the
guidelines published by the Financial Reporting Council entitled
"Going Concern and Liquidity Risk Guidance for UK Companies 2009".
Having made relevant and appropriate enquiries, including
consideration of the Company's and Group's current cash resources
and the working capital forecasts, the Directors have a reasonable
expectation that the Company and Group will have adequate cash
resources to continue to meet the requirements of the business for
at least the next twelve months. Accordingly, the Board continues
to adopt the going concern basis in preparing the financial
statements.
2. Segmental information
The Group's Chief Operating Decision Maker, the Chief Executive
Officer, is responsible for resource allocation and the assessment
of performance. In the performance of this role, the Chief
Executive Officer reviews the Group's activities, in the aggregate.
The Group has therefore determined that it has only one reportable
segment under IFRS 8 Operating Segments, which is "medical and
scientific research services".
The Group carries out its main activities from the United
Kingdom. The Group conducts sales activity in the US and in Europe
which is carried out through hVIVO Inc and hVIVO Services Limited
respectively. All revenue is derived from activities undertaken in
the UK.
During the year ended 31 December 2015 the Group had two
customers who generated revenues greater than 10% of total revenue.
These customers generated 59% and 28% of revenue.
During the year ended 31 December 2014 the Group had five
customers who generated revenues greater than 10% of total revenue.
These customers generated 28%, 22%, 16%, 15% and 11% of
revenue.
3. Taxation
Year ended Year ended
31 December 31 December
2015 2014
GBP'000 GBP'000
--------------------------------------------------- ------------ ------------
Current tax:
Current year research and development
tax credit (3,749) (3,806)
Adjustments in respect of previous periods 31 (143)
Foreign current tax 2 -
Deferred tax:
Origination and reversal of temporary
timing differences - (320)
--------------------------------------------------- ------------ ------------
(3,716) (4,269)
--------------------------------------------------- ------------ ------------
Factors affecting the tax charge for
the period:
The income assessed for the year differs from the theoretical
amount that would arise by applying the UK corporation tax
rate of 20.25% (2014: 21.49%), as explained below:
Loss before taxation (21,625) (22,705)
--------------------------------------------------- ------------ ------------
Tax at the UK corporation tax rate of
20.25% (2014: 21.49%) (4,379) (4,880)
Expenses not deductible in determining
taxable profit 129 160
Income not taxable for tax purposes (595) -
Fixed asset timing differences not recognised 8 57
Current year research and development
tax credit (1,542) (1,707)
Movement in unrecognised deferred tax
asset 2,137 1,700
Temporary timing differences not recognised 495 544
Adjustments in respect of prior periods 31 (143)
--------------------------------------------------- ------------ ------------
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Tax for the year (3,716) (4,269)
--------------------------------------------------- ------------ ------------
Factors affecting current and future taxation
The rate of UK corporation tax for the period to 31 March 2015
was 21% and 20% with effect from 1 April 2015. It will then fall to
19% from 1 April 2017, and 17% from 2020.
As at 31 December 2015, the Group had tax losses available for
carry forward of approximately GBP22.76 million (2014: GBP13.91
million). The Group has not recognised deferred tax assets of
GBP4.1 million (2014: GBP3.45 million) relating to carried forward
losses and GBP0.28 million in respect of other temporary
differences (2014: GBPnil). These deferred tax assets have not been
recognised as the Group's management considers that there is
insufficient future taxable income, taxable temporary differences
and feasible tax-planning strategies to utilise all of the
cumulative losses and therefore it is probable that the deferred
tax assets will not be realised in full. If future income differs
from current projections, this could significantly impact the tax
charge or benefit in future periods.
4. Earnings per share (EPS)
Basic earnings per share is calculated by dividing profit or
loss for the year by the weighted average number of ordinary shares
in issue during the year. Diluted EPS is computed based on the
weighted average number of ordinary shares plus the effect of
dilutive potential ordinary shares outstanding during the period
based on the number of shares that could have been acquired at fair
value (determined as the average annual market share price of the
Company's shares) based on the monetary value of the subscription
rights attached to outstanding share options and warrants.
The calculation of the basic and diluted EPS as included in the
consolidated statement of comprehensive income is based on the
following data:
Year ended Year ended
31 December 31 December
2015 2014
GBP'000 GBP'000
--------------------------------------- ------------ ------------
Earnings
Loss for the year (17,909) (18,436)
--------------------------------------- ------------ ------------
Number of shares
Weighted average number of ordinary
shares for the purposes of basic EPS 68,943,581 58,839,405
Effect of dilutive potential ordinary
shares:
- share options - -
Weighted average number of ordinary
shares for the purposes of diluted
EPS 68,943,581 58,839,405
--------------------------------------- ------------ ------------
In the current year, the potential ordinary shares were not
treated as dilutive as the Group is loss making, therefore the
weighted average number of ordinary shares for the purposes of the
basic and diluted loss per share were the same.
5. Goodwill
2015 2014
GBP'000 GBP'000
----------------------------------------- -------- --------
At 1 January 1,722 -
Recognised on acquisition of subsidiary - 1,722
----------------------------------------- -------- --------
At 31 December 1,722 1,722
----------------------------------------- -------- --------
The Group tests annually for impairment, or more frequently if
there are indications that goodwill might be impaired.
Consistent with our segmental reporting, the business has one
cash generating unit to which all goodwill arising on acquisitions
has been allocated. The recoverable amount of the cash generating
unit is determined by reference to fair value of the cash
generating unit less estimated costs of disposal. As at 31 December
2015, the recoverable amount of the cash generating unit was
considered to be significantly in excess of its book value.
6. Intangible assets
2015 2014
GBP'000 GBP'000
----------------------------------------- -------- --------
At 1 January 3,333 1,079
Additions at cost 15 148
Recognised on acquisition of subsidiary - 2,541
Amortisation charge for the year (318) (435)
----------------------------------------- -------- --------
At 31 December 3,030 3,333
----------------------------------------- -------- --------
Intangible assets comprise software and acquired intellectual
property.
7. Property, plant and equipment
Leasehold Plant and Computer
improvements machinery equipment Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ------------- ---------- ---------- --------
Cost:
At 31 December 2013 1,692 2,513 870 5,075
Additions 727 455 173 1,355
Acquisition of subsidiary - 22 2 24
--------------------------- ------------- ---------- ---------- --------
At 31 December 2014 2,419 2,990 1,045 6,454
Additions 72 655 142 869
Disposals - (2) - (2)
--------------------------- ------------- ---------- ---------- --------
At 31 December 2015 2,491 3,643 1,187 7,321
--------------------------- ------------- ---------- ---------- --------
Accumulated depreciation:
At 31 December 2013 382 711 315 1,408
Charge for the year 293 650 278 1,221
Impairment charge 672 - - 672
--------------------------- ------------- ---------- ---------- --------
At 31 December 2014 1,347 1,361 593 3,301
Charge for the year 320 729 293 1,342
Disposals - (1) - (1)
--------------------------- ------------- ---------- ---------- --------
At 31 December 2015 1,667 2,089 886 4,642
--------------------------- ------------- ---------- ---------- --------
Carrying amount:
At 31 December 2013 1,310 1,802 555 3,667
--------------------------- ------------- ---------- ---------- --------
At 31 December 2014 1,072 1,629 452 3,153
--------------------------- ------------- ---------- ---------- --------
At 31 December 2015 824 1,554 301 2,679
--------------------------- ------------- ---------- ---------- --------
8. Investment in associate
2015
GBP'000
------------------------------------------------ --------
As at 1 January -
Additions 14,405
Loss after tax recognised in the consolidated
statement of comprehensive income (146)
Share of other comprehensive loss of associate (5)
------------------------------------------------ --------
As at 31 December 14,254
------------------------------------------------ --------
On 1 November 2015 the Company acquired 62.62% of the share
capital of PrEP Biopharm Limited ("PrEP Biopharm") for cash
consideration of GBP14.0 million, of which GBP5.0 million was
deferred at 31 December 2015 and paid in January 2016. Acquisition
costs of GBP0.4 million have been capitalised as part of the cost
of the investment. PrEP Biopharm is a UK based development stage
biopharmaceutical company which is developing infectious disease
products. At the same time as the investment, PrEP Biopharm entered
into contractual arrangements with hVIVO Services Limited to the
value of GBP10.0 million.
In assessing the level of control hVIVO holds in respect of
equity investments, management consider a number of factors
including control of voting rights at board level and the power to
direct the "relevant activities" of that investee through decision
making and the management of assets.
Although hVIVO holds more than 50% of the equity of PrEP
Biopharm, hVIVO's voting rights are limited to 49.98% under the
Investment and Shareholders' Agreement ("ISHA"). The effect is that
the voting rights hVIVO is entitled to exercise are less than half
of the total voting rights that are able to be exercised.
Under the terms of the ISHA, hVIVO has appointed two of the
current four Directors of PrEP, including the Chair, with equal
votes and no casting vote. Accordingly, hVIVO does not control the
Board. In addition, it is anticipated that PrEP Biopharm will
appoint an additional one or two Non-Executive Directors in the
short term.
The terms of the ISHA exclude the hVIVO Directors from any Board
consideration and decision making on the hVIVO contracts. Under the
terms of the PrEP Biopharm transaction, PrEP Biopharm contracted
with hVIVO Services Limited for the delivery of hVIVO owned
intellectual property in flu and asthma under licencing
arrangements and also to conduct a Phase II durability study for a
total consideration of GBP10.0 million. The hVIVO contracts with
PrEP Biopharm are priced on an arms-length basis and with normal
terms.
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hVIVO has concluded that despite having significant influence,
the terms of the ISHA mean that it does not have the power to
direct the relevant activities of PrEP Biopharm. Accordingly,
hVIVO's investment in PrEP Biopharm has been accounted for as an
investment in an associate.
Summarised consolidated financial information in respect of PrEP
Biopharm Limited and its 100% owned US based subsidiary, PrEP
Biopharm Inc, is set out below and has been prepared in accordance
with IFRS.
2015
GBP'000
----------------------------------------- --------
Current assets 15,298
Non-current assets 5,076
Current liabilities (123)
------------------------------------------ --------
Net assets 20,251
------------------------------------------ --------
Interest in the associate 12,681
Goodwill 1,573
------------------------------------------ --------
Carrying amount of the Group's interest
in the associate 14,254
------------------------------------------ --------
PrEP Biopharm Limited and its subsidiary generated no revenues
during the period as the activity was that of product
development.
9. Inventories
31 December 31 December
2015 2014
GBP'000 GBP'000
-------------------------------------- ------------ ------------
Laboratory and clinical consumables 33 67
Virus - finished goods 2,108 2,212
Virus - work in progress - 1,452
-------------------------------------- ------------ ------------
2,141 3,731
-------------------------------------- ------------ ------------
Inventories expensed in the consolidated statement of
comprehensive income are shown within cost of sales or research and
development expense. All inventories are carried at the lower of
cost or net realisable value in the consolidated statement of
financial position.
During 2015 a provision of GBP1,614,000 (2014: GBPnil) was
recognised against the carrying value of "Virus - finished goods".
During 2013-14 management developed two separate strains of H3N2
flu virus for use in both client and internal studies. Two strains
were developed in order to mitigate the scientific and
manufacturing risk of one strain failing development and to ensure
that at least one strain was successful in the timeframe. As it is
likely that only one of these strains will be used in client
studies going forward, the second strain has been fully provided
against.
As at 31 December 2014, a provision in full of GBP1.3 million
against the carrying value of "Virus - work in progress" was
recognised relating to a virus to be used commercially, where the
new human disease models have not yet demonstrated technical
feasibility. As at 31 December 2015, the provision has increased by
GBP3,000 as further costs were incurred developing the virus strain
during the year.
10. Current intangible asset
2015 2014
GBP'000 GBP'000
------------------ -------- --------
At 1 January - -
Additions at cost 2,935 -
At 31 December 2,935 -
------------------ -------- --------
During 2015 hVIVO commenced a clinical trial programme with a
view to the study data generating future economic benefit through
licencing arrangements. Accordingly, the costs of performing these
studies have been capitalised. On 1 November 2015, PrEP Biopharm
Limited contracted to licence the study data for the flu and asthma
studies. The study data is forecast to complete and be provided to
PrEP Biopharm Limited during 2016, at which point these costs will
be amortised through cost of sales.
11. Trade and other receivables
31 December 31 December
2015 2014
GBP'000 GBP'000
------------------- ------------ ------------
Trade receivables 551 446
VAT recoverable - 295
Other receivables 405 667
Prepayments 1,274 1,334
Accrued income 412 162
------------------- ------------ ------------
2,642 2,904
------------------- ------------ ------------
12. Short-term deposits
31 December 31 December
2015 2014
GBP'000 GBP'000
--------------------- ------------ ------------
Short-term deposits 37,031 28,007
--------------------- ------------ ------------
Balances held on short-term deposits have maturity dates between
three and twelve months at the time of investment.
13. Cash and cash equivalents
31 December 31 December
2015 2014
GBP'000 GBP'000
-------------------------- ------------ ------------
Cash at bank and in hand 14,205 22,826
-------------------------- ------------ ------------
14. Trade and other payables
31 December 31 December
2015 2014
GBP'000 GBP'000
--------------------------------- ------------ ------------
Trade payables 2,265 2,754
Other taxes and social security 382 414
VAT Payable 984 -
Other payables 5,134 177
Accruals 1,303 903
Deferred income 7,434 370
--------------------------------- ------------ ------------
17,502 4,618
--------------------------------- ------------ ------------
15. Other payables
31 December 31 December
2015 2014
GBP'000 GBP'000
--------------------------------------- ------------ ------------
Amounts to be settled beyond one year 475 550
--------------------------------------- ------------ ------------
On 11 March 2013, the Group signed an Agreement for Lease with
Queen Mary BioEnterprises Limited to develop the 3rd floor of the
QMB Innovation Centre with a five-year term and an option to extend
for another five years. As part of the agreement, QMB advanced the
Group a repayable interest-free lease incentive of GBP750,000 to
develop the 3rd floor, with GBP75,000 per annum repayable over a
ten-year period. The lease incentive is recognised as a liability.
In the event the Group does not exercise its option to extend the
lease agreement for another five years, the remaining unpaid
principal of the advance (GBP375,000) must be repaid at the end of
the five-year contractual lease term.
16. Provisions
Onerous lease Dilapidations
provision provision Total
GBP'000 GBP'000 GBP'000
---------------------------------- --------------- -------------- --------
At 1 January 2015 3,000 130 3,130
Additional provision in the year 993 10 1,003
Used during the year (993) - (993)
---------------------------------- --------------- -------------- --------
At 31 December 2015 3,000 140 3,140
---------------------------------- --------------- -------------- --------
Onerous lease provision of GBP3.0 million (31 December 2014:
GBP3.0 million) represents management's best estimate of the costs
to be incurred for the exit of premises leased by the Group after
considering the likely outcomes. There is reasonable uncertainty
around the likelihood and timing of the exit of the lease as
negotiations will involve third parties. The provision is expected
to be used between 2016 and 2018. Total expected costs to be
incurred are GBP3.0 million.
Buildings dilapidations of GBP140,000 (31 December 2014:
GBP130,000) represent the present value of costs to be incurred for
the restoration of premises occupied by the Group. The provision is
expected to be used during 2018. Total expected costs to be
incurred are GBP140,000.
17. Note to the consolidated statement of cash flows
2015 2014
GBP'000 GBP'000
----------------------------------------------------------- --------- ---------
Cash flow from operating activities
Loss before income tax (21,625) (22,705)
Adjustments for:
Share of loss of associate 146 -
Depreciation of property, plant and equipment 1,342 1,221
Impairment of property, plant and equipment - 672
Amortisation of intangible assets 318 435
Payment of Non-Executive Director fees by issue of shares 68 15
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Share-based payment expense 78 10
Finance costs 17 15
Finance income (387) (358)
(Gain)/loss on foreign exchange (8) 8
Increase in provisions 10 3,020
Changes in working capital:
Decrease/(increase) in inventories 1,590 (615)
Increase in current intangible asset (2,935) -
Increase in R&D Expenditure Credit asset (352) -
Decrease in trade and other receivables 249 2,965
Increase/(decrease) in trade and other payables 7,885 (3,835)
----------------------------------------------------------- --------- ---------
Cash used in operations (13,604) (19,152)
Finance costs (17) (15)
Income tax refund 3,775 2,568
----------------------------------------------------------- --------- ---------
Net cash used in operating activities (9,846) (16,599)
----------------------------------------------------------- --------- ---------
Trade and other payables include deferred consideration of
GBP5.0 million in respect of the equity investment in PrEP Biopharm
Limited which was paid in January 2016. This amount has not been
included as a change in working capital as it relates to investing
activities.
As at 31 December 2015, a GBP352,000 asset has been recognised
in respect of an R&D Expenditure Credit (RDEC). This amount is
presented within Research and development tax credit receivable in
the consolidated statement of financial position. The remaining tax
credit is presented below loss from operations in the consolidated
statement of comprehensive income.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKSKRNNASAAR
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