TIDMIXI
RNS Number : 7225F
IXICO plc
22 May 2017
IXICO plc
("IXICO", the "Company" or the "Group")
Half Yearly Report to 31 March 2017
Strong revenue growth
Delivering on contracts and commercial collaborations
22 May 2017, IXICO plc (AIM: IXI), the digital technologies
company serving neuroscience, announces its unaudited interim
results for the six months ended 31 March 2017.
Financial Highlights
-- Revenue increased by 31% to GBP2.0m (2016: GBP1.5m)
-- Improved gross profit margin performance of 56% (2016: 49%)
-- EBITDA loss reduced to GBP0.4m (2016: GBP1.0m)
-- Operating loss reduced to GBP0.8m (2016: GBP1.1m)
-- Loss per share reduced to 2.6p (2016: 4.6p)
-- Cash balance of GBP2.8m (2016: GBP3.2m)
Commercial and Operational Highlights
Board restructuring
-- Giulio Cerroni appointed as Chief Executive Officer, brings
extensive experience in scaling operations to build businesses and
supplying sophisticated products and services to pharmaceutical and
research life science markets
-- Derek Hill remains on the Board as President of Regulatory
Science and External Relations with specific responsibility for
deepening the Company's relationships with major pharmaceutical
companies
Further strengthening of IXICO's specialist digital services to
pharmaceutical customers
-- Assessa(R)PML collaboration with Biogen expanded from pilot
stage to planning production roll-out
-- New sales wins demonstrate continued expansion and success in neurological disease areas
-- New contract with existing top 10 pharmaceutical company
reflects increasing adoption of technology platform
Innovation remains a key pillar of our long term strategy
-- Participation in a leading research collaboration to assess
<BETA>-amyloid for the prevention of Alzheimer's Disease as
part of the EPAD consortium
-- Participation in a new collaborative pan-European research
effort focused on addressing the challenges of successfully
delivering therapies to people with Alzheimer's Disease as part of
the ROADMAP consortium
Giulio Cerroni, Chief Executive Officer of IXICO, said: "Our
operational performance in the first half of this financial year
has delivered a strong increase in revenue, improved gross profit
margin performance and reduced losses. As we proceed into the
second half I am excited to be executing plans that focus on
accelerating our growth through optimising operational delivery and
our integrated digital technologies to drive scale and commercial
success."
Enquiries:
IXICO plc +44 20 3763 7499
Giulio Cerroni, Chief
Executive Officer
Susan Lowther, Chief Financial
Officer
Shore Capital (Nominated
Adviser and Broker) +44 20 7408 4090
Bidhi Bhoma / Edward Mansfield
/ James Wolfe
FTI Consulting Limited
(Investor Relations) +44 20 3727 1000
Simon Conway/Mo Noonan
Notes to Editors
About IXICO
IXICO is the digital technologies company serving neuroscience.
Our mission is to transform the pursuit of improving brain health
through the application of digital technologies to neuroscience.
IXICO's specialist data analytics services are used by the global
pharmaceutical industry to select participants for clinical trials,
assess the safety and efficacy of new drugs in development and in
post marketing surveillance. Our neurological disease focus
includes Alzheimer's disease, Huntington's disease, Multiple
Sclerosis, Parkinson's disease and our integrated digital platform
encompasses the entire drug development lifecycle. It is a scalable
and secure infrastructure for the capture and analysis of
regulatory compliant clinical data to enable sponsors to make
rapid, better informed decisions. IXICO is also collaborating with
partners to develop new companion digital health products targeted
at improving patient outcomes.
More information is available on www.IXICO.com
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
We have continued to make good progress in the first six months
of the year. We have delivered a significant operational and
financial improvement over the prior period with both strong
revenue growth and improved gross margin, driving reduced losses.
This has been achieved by a customer-led focus and improvements in
delivery whilst strengthening our operational base to drive scale
to support consistent revenue growth.
On 6 February 2017, we strengthened the management team with
Giulio Cerroni joining as Chief Executive Officer and Derek Hill
taking on the new role of President of Regulatory Science and
External Relations, reflecting the next phase of growth in the
business. To support our mission of improving brain health and to
realise our ambition of building a leading digital technologies
company serving neuroscience, we have defined a commercially-led
accelerated growth plan as a specialist services provider to the
life sciences and pharma sector underpinned by our scientific
expertise in brain diseases coupled with proprietary technology.
This is focused on building on our trusted partnerships with our
pharmaceutical customers who are seeking to develop and market
effective therapies for neurological diseases. Here we have an
established track record and a proprietary, scalable, digital
platform that combines with our neurological disease expertise and
knowhow in providing regulatory compliant data handling. In
particular, our commercial partnership with Biogen demonstrates how
IXICO's digital technology and specialist service capabilities are
equally relevant in post-marketing applications, opening up wider
market opportunities beyond clinical drug development.
In the period we progressed commercial collaborations and
entered new contracts, both with existing and new customers:
-- Our Assessa(R)PML collaboration with Biogen continues to make
excellent progress as we work together through an expanded pilot
stage as part of planning the commercial platform roll out, with
IXICO providing specialist associated services. This is an
important validation of our ability to leverage our data collection
and analytics platform across all stages of drug development. In
doing so we are introducing a unique, scalable integrated digital
platform that provides mission critical services to the
pharmaceutical industry.
-- In October 2016, we entered into a new contract worth US$1.2m
with a top 15 global pharmaceutical company for advanced imaging
clinical trial services in a rare neurodegenerative disease,
progressive supranuclear palsy ("PSP"), a Parkinson's-like
neurodegenerative condition caused by the premature loss of nerve
cells in certain parts of the brain. The project is for a Phase IIa
clinical study of patients in the early stages of PSP and will
utilise IXICO's TrialTracker(TM) and Assessa(R) digital platforms
to collect and analyse MRI data from specialist imaging centres
across Europe and North America. The study is expected to complete
in 2019 with the potential to be extended further.
-- In March 2017, we entered into a new contract worth US$1.5m
with an existing top 10 pharmaceutical customer for the supply of
services to a Phase IIb clinical trial of patients in PSP. IXICO
will collect, manage and analyse MRI scans acquired at over 90
international specialist imaging centres utilising its proprietary
TrialTracker(TM) platform. This data analytics technology has been
specifically modified for quantifying drug effects in PSP patients.
This current study is expected to complete in 2020 and there is
potential for the scope to be extended further.
Innovation remains a key pillar of our long term strategy and
future revenue growth plans. To support our recognised position as
a leader in the broader digital health field, we actively
participate in R&D collaborations funded by grants and
partners. This environment also offers opportunities to engage with
established pharmaceutical partners in a more strategic and
collaborative way, as they look to integrate digital technologies
in clinical trials and also consider how they might be deployed
alongside marketed drugs as companion products.
-- In October 2016, we joined an expert panel at The Coalition
Against Major Diseases regulatory workshop, alongside
representatives of the pharmaceutical industry and regulators from
the FDA, EMA and PMDA. We presented how, through ongoing biosensor
programmes, IXICO is addressing challenges such as ethics, privacy
and security, data validation and clinical meaningfulness of data
associated with the inclusion of wearable biosensors in
pharmaceutical company sponsored clinical trials.
-- In the period, we announced our participation in the
Innovative Medicines Initiative focused on Amyloid Imaging to
better understand <BETA>-amyloid for the prevention of
Alzheimer's Disease (the AMYPAD consortium). Working in
collaboration with leading academic, healthcare and pharmaceutical
partners, including GE Healthcare, Piramal Imaging and Janssen
Pharmaceutica JPNV, this research project aims to improve the
diagnosis and management of the disease, understand the natural
history in pre-symptomatic stage and select people for treatment or
trials aimed at preventing Alzheimer's Disease. IXICO's
TrialTracker(R) and Assessa(R) technology platforms will evaluate
and enhance the way that amyloid PET scans can be used to support
the development of new therapies for the treatment of patients with
Alzheimer's Disease.
-- In addition, we also entered into a new collaborative
pan-European research effort under the Innovative Medicines
Initiative's umbrella focused on addressing the challenges of
successfully delivering therapies to people with Alzheimer's
Disease (the ROADMAP consortium). In this collaboration with
leading pharmaceutical companies and academics, IXICO's platforms
will be used to devise clinically meaningful measurements from
biosensors worn by patients, and to develop enhanced models of
disease progression to help select the most appropriate treatment
for an individual patient.
Current trading and outlook
In summary, our financial year has started very well and, with
strong growth and improved margins, we are making progress on our
path to profitability with the Company well positioned to deliver
double digit growth for the financial year, in line with market
expectations. Profitability is an important target that we believe
is within our reach without sacrificing appropriate investments in
innovation, enhancing infrastructure and commercial
capabilities.
We would like to thank our shareholders, customers, partners and
staff for their continued support and enthusiasm and look forward
to providing further updates as the Company enters its next phase
as a public business.
FINANCIAL REVIEW
The financial performance for the six-month period to 31 March
2017 was in line with expectations.
Revenue
Revenue of GBP2.0million (H1 2016: GBP1.5million) represented a
growth of over 30% compared to the prior period. This reflected the
progression of clinical trials contracts (through the start-up and
enrolment stages) and the Assessa(R)PML commercial collaboration
with Biogen.
Other income
Other income of GBP0.4million (H1 2016: GBP0.4million) was in
line with the prior period. Further committed grant funding is
expected to be received in the second half of the financial
year.
Operating expenditure and loss after tax
Operating expenditure of GBP2.4million (H1 2016: GBP2.3million)
includes GBP0.4million intangible asset impairment charge.
EBITDA loss of GBP0.4million (H1 2016: GBP1.0million) reflected
higher revenues, improved gross margin and lower operating
expenditure as a result of strong operational delivery focus.
Accordingly, the Group's loss after tax for the six months was
significantly improved. The loss reduced by over 30% to
GBP0.7million (H1 2015: GBP1.1million).
Current assets
Trade and other receivables of GBP1.6million (H1 2016:
GBP1.8million) were in line with expectations, reflect agreed
payment terms and are not impaired.
The tax asset of GBP0.7million (H1 2016: GBP0.4million) includes
full year 2016 R&D tax credit claim of GBP0.6million. This is
expected to be a cash receipt in the second half of the year of
which GBP0.1million was received in early May.
Closing cash of GBP2.8million at 31 March 2017 (H1 2016:
GBP3.2million) reflected a net cash outflow of GBP0.3million in the
six month period. Net cash used in operations reduced to
GBP0.3million (H1 2016: GBP1.6million).
Current liabilities
Trade and other payables of GBP1.6million were in line with the
prior period (H1 2016: GBP1.3million). The deferred consideration
of GBP0.2million in respect of the acquisition of Optimal Medicine
Limited was satisfied by an issue of shares in January 2017.
Consolidated Statement of Comprehensive Income
for the six months ended 31 March 2017 - unaudited
Six months Six months Year ended
ended ended 30 September
31 March 31 March 2016
2017 2016
GBP'000 GBP'000 GBP'000
Note unaudited unaudited audited
------------------------------ ----- ----------- ----------- --------------
Revenue 2,015 1,536 3,111
Cost of sales (880) (789) (1,680)
------------------------------ ----- ----------- ----------- --------------
Gross profit 1,135 747 1,431
Other income 441 446 752
Operating expenses
Research and development
expenses (697) (776) (1,583)
Sales and marketing
expenses (335) (400) (759)
General and administrative
expenses (909) (1,086) (2,005)
Non-recurring administrative
expenses 3 (428) (40) (706)
------------------------------ ----- ----------- ----------- --------------
Total operating expenses (2,369) (2,302) (5,053)
Operating loss (793) (1,109) (2,870)
Finance income - - 1
Loss on ordinary activities
before taxation (793) (1,109) (2,869)
Taxation 110 82 750
------------------------------ ----- ----------- ----------- --------------
Loss attributable to
equity holders for
the period (683) (1,027) (2,119)
------------------------------ ----- ----------- ----------- --------------
Other comprehensive
expense:
Foreign exchange translation
differences (26) (16) (66)
------------------------------ ----- ----------- ----------- --------------
Total other comprehensive
expense (26) (16) (66)
Total comprehensive
expense attributable
to equity holders for
the period (709) (1,043) (2,185)
------------------------------ ----- ----------- ----------- --------------
Loss earnings per share
(pence) 4
------------------------------ ----- ----------- ----------- --------------
Basic loss per share (2.6) (4.6) (8.7)
Diluted loss per share (2.6) (4.6) (8.7)
------------------------------ ----- ----------- ----------- --------------
Consolidated Statement of Financial Position
as at 31 March 2017 - unaudited
As at As at As at
31 March 31 March 30 September
2017 2016 2016
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
----------------------------- ---------- ---------- --------------
ASSETS
Non-current assets
Property, plant and
equipment 77 113 88
Intangible assets 150 1,346 559
------------------------------ ---------- ---------- --------------
Total non-current
assets 227 1,459 647
Current assets
Trade and other receivables 1,606 1,808 1,353
Current tax receivable 664 409 562
Cash and cash equivalents 2,800 3,181 3,120
------------------------------ ---------- ---------- --------------
Total current assets 5,070 5,398 5,035
Total assets 5,297 6,857 5,682
------------------------------ ---------- ---------- --------------
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 1,615 1,285 1,311
Deferred consideration 5 - 174 174
------------------------------ ---------- ---------- --------------
Total current liabilities 1,615 1,459 1,485
Non-current liabilities
Deferred tax liabilities 29 269 112
------------------------------ ---------- ---------- --------------
Total non-current
liabilities 29 269 112
Equity
Ordinary shares 7,727 7,720 7,720
Share premium 79,421 79,421 79,421
Merger relief reserve 1,480 1,312 1,312
Reverse acquisition
reserve (75,308) (75,307) (75,307)
Translation reserve (92) (16) (66)
Accumulated losses (9,575) (8,001) (8,995)
------------------------------ ---------- ---------- --------------
Total equity 3,653 5,129 4,085
Total liabilities
and equity 5,297 6,857 5,682
------------------------------ ---------- ---------- --------------
Consolidated Statement of Changes in Equity
for the six months ended 31 March 2017 - unaudited
6 months Foreign
ended Merger Reverse exchange
31 March Ordinary Share relief acquisition translation Accumulated
2017 shares premium reserve reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
unaudited unaudited unaudited unaudited unaudited unaudited unaudited
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Balance
at 1 October
2016 7,720 79,421 1,312 (75,307) (66) (8,995) 4,085
Total
comprehensive
expense
Loss for
the period - - - - - (683) (683)
Other
comprehensive
expense:
Foreign
exchange
translation
differences - - - - (26) - (26)
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Total
comprehensive
expense - - - - (26) (683) (709)
Transactions
with owners
Charge
in respect
of share
options - - - - - 103 103
Exercise
of share
options 1 - - (1) - - -
Issue
of deferred
consideration
shares 6 - 168 - - - 174
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Total
transactions
with owners 7 - 168 (1) - 103 277
Balance
at 31
March
2017 7,727 79,421 1,480 (75,308) (92) (9,575) 3,653
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Consolidated Statement of Changes in Equity
for the six months ended 31 March 2017 - unaudited
(continued)
6 months Foreign
ended Merger Reverse exchange
31 March Ordinary Share relief acquisition translation Accumulated
2016 shares premium reserve reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
unaudited unaudited unaudited unaudited unaudited unaudited unaudited
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Balance
at 1 October
2015 7,529 76,804 641 (75,229) - (7,036) 2,709
Total
comprehensive
expense
Loss for
the period - - - - - (1,027) (1,027)
Other
comprehensive
expense:
Foreign
exchange
translation
differences - - - - (16) - (16)
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Total
comprehensive
expense - - - - (16) (1,027) (1,043)
Transactions
with owners
Charge
in respect
of share
options - - - - - 28 28
Exercise
of share
options 78 - - (78) - - -
Proceeds
from shares
issued 89 2,617 - - - - 2,706
Cost of
acquisition 24 - 671 - - 34 729
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Total
transactions
with owners 191 2,617 671 (78) - 62 3,463
Balance
at 31
March
2016 7,720 79,421 1,312 (75,307) (16) (8,001) 5,129
---------------- ---------- ---------- ---------- ------------- ------------- ------------ ----------
Consolidated Statement of Changes in Equity
for the six months ended 31 March 2017 - unaudited
(continued)
Year ended Foreign
30 September Merger Reverse exchange
2016 Ordinary Share relief acquisition translation Accumulated
shares premium reserve reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
audited audited audited audited audited audited audited
--------------------- --------- --------- --------- ------------- ------------- ------------ --------
Balance
at 1 October
2015 7,529 76,804 641 (75,229) - (7,036) 2,709
Total comprehensive
expense
Loss for
the period - - - - - (2,119) (2,119)
Other comprehensive
expense:
Foreign
exchange
translation
differences - - - - (66) - (66)
--------------------- --------- --------- --------- ------------- ------------- ------------ --------
Total comprehensive
expense - - - - (66) (2,119) (2,185)
Transactions
with owners
Charge
in respect
of share
options - - - - - 126 126
Exercise
of share
options 78 - - (78) - - -
Proceeds
from shares
issued 89 2,617 - - - - 2,706
Cost of
acquisition 24 - 671 - - 34 729
--------------------- --------- --------- --------- ------------- ------------- ------------ --------
Total transactions
with owners 191 2,617 671 (78) - 160 3,561
Balance
at 30 September
2016 7,720 79,421 1,312 (75,307) (66) (8,995) 4,085
--------------------- --------- --------- --------- ------------- ------------- ------------ --------
Consolidated Statement of Cash Flows
for the six months ended 31 March 2017 - unaudited
Six months Six months Year ended
ended ended 30 September
31 March 31 March 2016
2017 2016
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
--------------------------------- ----------- ----------- --------------
Cash flows from operating
activities
Loss for the period (683) (1,027) (2,119)
Finance income - - (1)
Taxation (110) (82) (750)
Depreciation 25 28 55
Amortisation of acquired
intangibles 93 108 292
Impairment of acquired
intangibles 316 - 603
Research and development
expenditure credit (71) (66) (135)
Share option charge 103 28 126
---------------------------------- ----------- ----------- --------------
(327) (1,011) (1,929)
Changes in working capital
(Increase) / decrease
in trade and other receivables (250) (178) 287
Increase / (decrease)
in trade and other payables 296 (338) (323)
---------------------------------- ----------- ----------- --------------
Cash used in from operations (281) (1,527) (1,965)
Taxation received - - 430
---------------------------------- ----------- ----------- --------------
Net cash used in operating
activities (281) (1,527) (1,535)
---------------------------------- ----------- ----------- --------------
Cash flows from investing
activities
Cash and cash equivalents
acquired - 98 98
Purchase of property,
plant and equipment (14) (18) (24)
Finance income - - 1
---------------------------------- ----------- ----------- --------------
Net cash (used in) / generated
from investing activities (14) 80 75
---------------------------------- ----------- ----------- --------------
Cash flows from financing
activities
Issue of shares - 2,706 2,706
Net cash generated from
financing activities - 2,706 2,706
Movements in cash and
cash equivalents in the
period (295) 1,259 1,246
---------------------------------- ----------- ----------- --------------
Cash and cash equivalents
at start of period 3,120 1,934 1,934
Effect of exchange rate
fluctuations on cash held (25) (12) (60)
---------------------------------- ----------- ----------- --------------
Cash and cash equivalents
at end of period 2,800 3,181 3,120
---------------------------------- ----------- ----------- --------------
1. GENERAL INFORMATION
IXICO plc ('the Company') is a public limited company
incorporated in England & Wales and is admitted to trading on
the AIM market of the London Stock Exchange under the symbol IXI.
The address of its registered office is 4th Floor, Griffin Court,
15 Long Lane, London EC1A 9PN.
The Company's integrated product offering covers every stage of
clinical drug development and its proprietary technology includes
clinical trials services, data analytics and companion
products.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The condensed consolidated interim financial statements were
approved by the Board of Directors for issue on 22 May 2017. The
condensed consolidated interim financial statements do not comprise
statutory accounts within the meaning of section 434 of the
Companies Act 2006. The condensed consolidated interim financial
statements together with the comparative information for the six
months ended 31 March 2016 are unaudited.
The statutory accounts of the Company for the period ended 30
September 2016 were approved by the Board of Directors on 19
December 2016 and delivered to the Registrar of Companies. The
report of the auditors on those accounts was unqualified, did not
contain an emphasis of matter paragraph and did not contain any
statement under section 498 of the Companies Act 2006.
Going concern
At the time of approving the condensed consolidated interim
financial statements, and based on a review of the group's
forecasts and business plan, the directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus they have
adopted the going concern basis of accounting in preparing the
condensed consolidated interim financial statements.
Accounting policies
The accounting policies used in the condensed consolidated
interim financial statements are consistent with those used in the
consolidated financial statements for the period ended 30 September
2016 and are in accordance with International Financial Reporting
Standards as adopted by the European Union.
Significant management judgement in applying accounting policies
and estimation uncertainty
When preparing the condensed consolidated interim financial
statements, the Directors make a number of judgements, estimates
and assumptions about the recognition and measurement of assets,
liabilities, income and expenses.
Significant management judgements
The following are significant management judgements in applying
the accounting policies of the Group that have the most significant
effect on the condensed consolidated interim financial
statements.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
(continued)
Revenue recognition
The Group recognises revenue with regard to amounts chargeable
to customers under service contracts. The policy is to recognise
testing services upon achievement of milestones set out in the
related agreements. This is expected to approximate to the timing
of the physical performance of the service activity on such
contracts. Recognising revenue also requires significant judgement
in determining actual work performed and the estimated costs to
complete the work. Assessing whether the Group is acting as agent
in respect of an agency relationship, depends on facts and
circumstances and requires judgement.
Capitalisation of internally developed software
Distinguishing the research and development phases of a new
customised software project and determining whether the recognition
requirements for the capitalisation of development costs are met
requires judgement. Expenditure on research is recognised as an
expense as incurred. No development costs have been capitalised in
the period.
Recovery of deferred tax assets
Deferred tax assets have not been recognised for deductible
temporary differences and tax losses as the directors consider that
there is not sufficient certainty that future taxable profits will
be available to utilise those temporary differences and tax
losses.
Estimation uncertainty
Information about estimates and assumptions that have the most
significant effect on recognition and measurement of assets,
liabilities, income and expenses is provided below. Actual results
may be substantially different.
Impairment of intangible assets
Amortised intangibles are tested for impairment where there are
indications of impairment. These impairment tests require the Group
to make an estimate of the expected cash flows and to select
suitable discount rates. These require an estimation of the value
in use of these assets. During the 6 months ended 31 March 2017,
the behavioural health technology and marketing know-how intangible
asset was fully written off resulting in an impairment charge of
GBP316,000 (year ended 30 September 2016: GBP603,000).
Share-based payments
The Group measures the cost of equity-settled transactions with
employees by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value of the
options granted is measured using an option valuation model, taking
into account the terms and conditions upon which the options were
granted.
3. EXCEPTIONAL EXPENSES
Non-recurring administrative expenses of GBP316,000 are in
respect of the behavioural health technology and marketing know-how
intangible asset impairment charge and restructuring costs. In the
year ended 30 September 2016, non-recurring administrative expenses
included a GBP603,000 impairment charge.
4. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss for the
period attributable to equity holders by the weighted average
number of ordinary shares outstanding during the period after the
deduction of the weighted average number of the ordinary shares
held by the employee benefit trust during the period.
For diluted loss per share, the loss for the period attributable
to equity holders and the weighted average number of ordinary
shares outstanding during the period is adjusted to assume
conversion of all dilutive potential ordinary shares. As the effect
of the share options would be to reduce the loss per share, the
diluted loss per share is the same as the basic loss per share.
The calculation of the Group's basic and diluted loss per share
is based on the following data:
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2017 2016 2016
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
------------------------------ ----------- ----------- --------------
Loss attributable to equity
holders for the period (683) (1,027) (2,119)
------------------------------ ----------- ----------- --------------
As at As at As at
31 March 31 March 30 September
2017 2016 2016
Number Number Number
unaudited unaudited audited
------------------------------ ----------- ----------- --------------
Weighted average number
of ordinary shares 26,737,883 22,248,537 24,350,856
Shares held by Trustees
in respect to the Company's
Share Incentive Plan 2007 (1,740) (1,740) (1,740)
------------------------------ ----------- ----------- --------------
Weighted average number
of ordinary shares used
in basic loss per share 26,736,143 22,246,797 24,349,116
------------------------------ ----------- ----------- --------------
5. ISSUED CAPITAL AND RESERVES
On the 4 January 2017, the Company issued 590,093 new ordinary
shares in respect of the deferred consideration for the acquisition
of Optimal Medicine Limited. No claims were made against the
warranties given by the sellers.
On 29 March 2017, 55,846 new ordinary shares were issued and
allotted in the Company pursuant to the put and call arrangement in
respect of the Optimal Medicine Limited unapproved share option
instruments.
As at 31 March 2017, following the admission to trading of the
new ordinary shares, the Company had 27,119,130 ordinary shares of
1 pence each in issue.
6. SHARE-BASED PAYMENTS
The Group operates the IXICO EMI Share Option Plan 2014 (the
'Plan'). Options granted under the Plan are exercisable at the
market value of a share determined to the satisfaction of the Board
in accordance with the applicable provisions of Part VIII of the
Taxation of Chargeable Gains Act 1992.
During the period ended 31 March 2017 a share based payment of
GBP103,000 was charged to the consolidated statement of
comprehensive income.
As at the period end, the reconciliation of share option scheme
movements is as follows:
As at 31 March
2017
Number WAEP
------------------------------ ---------- --------
Outstanding at 1 October 2016 2,293,753 GBP0.33
Granted 1,044,698 GBP0.37
Exercised on 29 March 2017 (55,846) GBP0.00
Lapsed (723,659) GBP0.36
------------------------------ ---------- --------
Outstanding at 31 March 2017 2,558,946 GBP0.34
------------------------------ ---------- --------
Exercisable at 31 March 2017 441,895 GBP0.27
------------------------------ ---------- --------
As at the period end, the share options outstanding have the
following expiry dates and exercise price:
As at 31 March 2017
Expiry
date Number WAEP
---------------------------- ------- ---------- --------
IXICO EMI Share Option 2014 7 May 2,513,600 GBP0.35
2024
Optimal Medicine Limited 7 June 45,346 GBP0.00
share option instruments 2017
---------------------------- ------- ---------- --------
Total share options outstanding have a range of exercise prices
from GBP0.00 to GBP0.49 per option and the weighted average
contractual life is 7.6 years.
IXICO EMI Share Option Plan 2014 (the 'Plan')
On 7 February 2017, the Group granted 1,044,698 share options to
employees of the Group under the Plan. The share options contain
standard and enhanced vesting conditions which are subject to the
achievement of individual employee and Group performance criteria
as determined by the Remuneration Committee. Of the share options
granted:
-- 158,116 share options will vest and are exercisable in two
equal tranches at the end of years one and two, and
-- 886,582 share options granted have enhanced vesting
conditions which have been assumed to vest at the end of year
three.
If the options remain unexercised after a period of seven years
from the date of grant, the options expire. The options lapse if an
employee leaves the company before the options vest.
6. SHARE-BASED PAYMENTS (continued)
The estimated fair value of the options granted is GBP151,000.
The inputs used in the measurement of fair value at grant date of
the share options issued are as follows:
As at 31 March 2017
--------------------------- ------------------------------
Weighted average share GBP0.365
price
Weighted average exercise GBP0.365
price
Expected volatility 58.0%
Expected life 7 years
Expected dividends 0.0%
Risk free interest rate 0.86%
Model used Monte Carlo followed by 'Hull
White' trinomial lattice
--------------------------- ------------------------------
Note to assumptions:
Expected volatility
-- Expected volatility is based on historical performance of the
share price using exponentially weighted moving average model
function.
Expected life
-- The expected life used in the model has been adjusted, based
on management's best estimate, for the effects of
non-transferability, exercise restrictions, and behavioural
considerations.
Expected dividends
-- The historical dividend yield is 0.0%.
Risk free interest rate
-- Risk free rate has been taken from the United Kingdom gilts
over the expected life of the share options.
During the six month period ended 31 March 2017, 235,921 and
477,529 share options granted in October 2014 and March 2016
respectively did not meet the vesting conditions, therefore were
not exercisable and subsequently lapsed.
Optimal Medicine Limited share option instruments
IXICO plc established a put and call arrangement to satisfy the
exercise of outstanding Optimal Medicine Limited unapproved share
option instruments, granting 111,401 restated ordinary shares
(2,948 shares). The exercise of these options is at the option of
the holder with a fixed conversion rate of 37.79 for the effective
issue of new IXICO plc shares. IXICO plc issued a letter to each
option holder committing to exchange all the shares in Optimal
Medicine Limited arising from the exercise of such options for
ordinary shares in IXICO plc at the acquisition price.
As at 7 December 2016, 10,209 restated share options instruments
(273 share option instruments) were not exercised by their expiry
date and subsequently lapsed.
On 29 March 2017, 55,846 restated new ordinary shares (1,475
shares) were issued and allotted in the Company pursuant to the put
and call arrangement in respect of the Optimal Medicine Limited
unapproved share option instruments. The options were exercised at
a weighted average share price of GBP0.26.
The remaining 45,346 restated share option instruments (1,200
share option instruments) are exercisable and must be exercised by
7 June 2017 or they will lapse.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIEEEIALID
(END) Dow Jones Newswires
May 22, 2017 02:00 ET (06:00 GMT)
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