RNS Number:2283T
Maelor PLC
27 October 2005
Maelor PLC - Interim Statement 2005/06
Continued Increase in Revenues and Reduction in Losses
27th October 2005
Maelor plc, the specialist healthcare products company, announces its interim
results for the six months ended 30 September 2005.
Financial Highlights
* Turnover up 11% to #923,272 (2004: #832,362)
* Pre-tax loss down 12% to #407,266 (2004: #463,228)
* Cash balance of #1.2 million (2004: #1.3 million)
* Loss per share of 1.17 pence (2004:1.19 pence)
Operational Highlights
* Appointments of Tim Wright as CEO and Geoff McMillan as a Non Executive
Director
* OptiFlo(TM) sales growth of 30% and market share up to 49%
* Re-acquisition of distribution rights for Volplex(R)
* ContiSol(TM) launched in Canada
Commenting on the results Chairman, Alastair Macpherson, said:
"These results, with the continued increase in revenues and reduction in losses,
show that Maelor is still on track for profitability. The record level of sales
for our lead product Optiflo(TM) and the re-acquisition of the marketing and
distribution rights for Volplex(R) demonstrate that Maelor is wholly committed
to fulfilling its plans to become an integrated healthcare company.
We are delighted with the appointments of Tim Wright as CEO and Geoff McMillan
as a Non Executive Director, and we are confident that they will be of great
benefit to Maelor through the next phase of the Company's growth".
For further information contact:
Maelor plc
Tim Wright, Chief Executive Officer
01978 810 153
Financial Dynamics
Ben Atwell/John Gilbert
020 7831 3113
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT
We are pleased to report that the Company's interim results for the six months
to 30 September 2005 show increased revenues and reduced losses. Maelor has
maintained steady progress towards profitability through its continued focus on
the commercialisation of our product portfolio and attention to cost
containment.
OptiFloTM, our range of catheter maintenance solutions distributed in the UK by
Bard Ltd, continues to perform well with sales growth of 30% and market share up
to 49%, while ContiSolTM, our international brand for those solutions, has been
launched in Canada.
Maelor is taking a further significant step towards becoming an integrated
healthcare company by re-acquiring the marketing and distribution rights for
Volplex(R) in the UK.
We were pleased to welcome Tim Wright as Chief Executive Officer and Geoff
McMillan as a Non Executive Director to the Board. These appointments will
bring great benefit and experience to Maelor in the development and
commercialisation of healthcare brands.
FINANCIAL RESULTS
Revenue during the six months to 30 September 2005 amounted to #923,272, an 11%
increase over the same period last year. The Company's pre-tax loss for the six
months was #407,266, a reduction of 12% over the same period last year. As at
30 September 2005 cash balances were #1.2 million (September 2004: #1.3
million).
In the course of the preparation of the interim accounts for the six months
ended 30th September 2005, the Directors became aware that the value of the
Company's net assets was less than half that of the Company's called up share
capital. In such circumstances, Section 142 of the Companies Act 1985 obliges
the Directors to convene an extraordinary general meeting (EGM) of the Company
to consider what specific steps, if any, should be taken to address the
situation. The EGM will be held on 30th November 2005 to comply with statutory
requirements and the Directors will continue to monitor the net asset position
closely. The Directors consider that the financial base of the Company is sound
and, accordingly, are of the opinion that no further steps are required to
address the situation.
APPROVED PRODUCTS
Volplex(R) - for the treatment of hypovolaemia (low blood volume)
During this period significant steps have been taken to improve the
profitability of Volplex for Maelor. These improvements include a change of
manufacturer and the re-acquisition of marketing and distribution rights. This
re-acquisition has enabled Maelor to be more actively involved in the hospital
tendering process. As a result, two further regional tenders have been
successfully awarded.
OptiFlo(TM) & ContiSol(TM) - for cleansing urethral catheters
The UK prescription market share of OptiFlo continues to grow and now represents
49% (Source: IMS September 2005) of its sector. Bard remains committed to this
product and the continuing success of its marketing efforts has resulted in
sales growth of 30%.
Following the announcement of a North American distribution agreement for
ContiSol, our international brand of catheter maintenance solutions, with
American Australian Inc, we have recently seen the launch in Canada.
DEVLOPMENT PRODUCTS
Micelle technology - solubilising insoluble active pharmaceuticals and drug
delivery
Maelor owns the patents for Micelle technology, a process whereby usually
insoluble active pharmaceuticals can be solubilised. Micelle propofol has been
developed using this technology to offer an aqueous solution of the most widely
used intravenous general anaesthetic. This formulation offers particular
advantages in that it can be mixed with other water-soluble products, is stable
over a range of temperatures, and critically has intrinsic bactericidal
properties. The future of this product in human applications will be explored
within the forthcoming strategic review. However, we are increasingly aware of
the potential application in the veterinary sector, which we currently believe
offers an attractive commercial opportunity.
BOARD APPOINTMENTS
In April 2005, we were pleased to announce the appointment of Geoff McMillan as
a Non Executive Director, with effect from 1st May. Geoff has previously held
Board positions at Roche, Xenova and Elan. He was, until recently, the Chief
Executive Officer of BioFocus plc and following the recent successful sale of
BioFocus to Galapagos NV, has joined their Board as a Non Executive Director.
In September 2005, we announced the appointment of Tim Wright as Chief
Executive. With over fifteen years experience in the pharmaceutical industry,
Tim has held senior commercial positions at Pfizer and Smithkline Beecham, both
domestically and internationally. His most recent roles were with Elan
Pharmaceuticals where he was General Manager for Ireland and Vice President,
International Marketing. During his time at Elan, Tim was instrumental in the
establishment, development and subsequent successful divestment of Elan's
European business.
OUTLOOK
Maelor has taken further significant steps towards becoming a profitable
specialist healthcare business. The appointments of Tim Wright and Geoff
McMillan further underline the Board's commitment to build a strong management
team that will further develop the business and deliver enhanced shareholder
value.
The Company will continue to drive for profitability through the ongoing
leverage of the existing product portfolio, establishment of further
partnerships and efficient control of costs.
In order to formulate a strategy for additional future growth, a rigorous
strategic review is planned that will critically examine the capabilities of the
existing business and opportunities for enhancement.
Alastair Macpherson
Chairman
Tim Wright
Chief ExecutiveOfficer
MAELOR PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2005
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
30 September 30 September 31 March
2005 2004 2005
# # #
_____ _____ _____
Turnover 923,272 832,362 1,639,294
Cost of Sales (559,172) (523,722) (1,035,302)
_____ _____ _____
Gross Profit 364,100 308,640 603,992
Research and Development (79,606) (261,809) (344,339)
Administration (713,177) (534,850) (1,122,332)
_____ _____ _____
Operating Loss (428,683) (488,019) (862,679)
Interest receivable and similar income 28,324 33,904 65,366
Interest payable (6,907) (9,113) (16,931)
_____ _____ _____
Loss on ordinary activities before tax (407,266) (463,228) (814,244)
Taxation recoverable 9,581 55,696 150,484
_____ _____ _____
Retained loss attributable to the Group (397,685) (407,532) (663,760)
Basic loss per ordinary share (1.17)p (1.19)p (1.95)p
Diluted loss per ordinary share (1.17)p (1.19)p (1.95)p
_____ _____ _____
The Group's activities are classified as continuing.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 September 2005
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
30 September 30 September 31 March
2005 2004 2005
# # #
_____ _____ _____
Loss for the period/year (397,685) (407,532) (663,760)
Unrealised surplus on revaluation of properties - - 88,250
_____ _____ _____
Total gains and losses recognised since last (397,685) (407,532) (575,510)
report
_____ _____ _____
CONSOLIDATED BALANCE SHEET
At 30 September 2005
Unaudited Unaudited Audited
30 September 30 September 31 March
2005 2004 2005
# # #
_____ _____ _____
Fixed Assets
Tangible assets 392,004 305,217 384,593
_____ _____ _____
Current assets
Stock 125,305 148,134 132,138
Debtors - due within one year 808,915 1,094,000 660,782
- due after more than one year 80,000 - 80,000
Cash at bank and in hand 1,235,727 1,329,977 1,467,692
_____ _____ _____
2,249,947 2,572,111 2,340,612
_____ _____ _____
Creditors: amounts falling due within one year (801,674) (507,527) (517,847)
_____ _____ _____
Net current assets 1,448,273 2,064,584 1,822,765
_____ _____ _____
Total assets less current liabilities 1,840,277 2,369,801 2,207,358
_____ _____ _____
Creditors: amounts falling due after more than (183,090) (187,593) (193,128)
one year
_____ _____ _____
Net assets 1,657,187 2,182,208 2,014,230
_____ _____ _____
Capital and reserves
Called up share capital 3,428,083 3,410,458 3,410,458
Shares to be issued 23,017 - -
Share premium account 12,154,094 12,154,094 12,154,094
Revaluation reserve 153,689 65,949 153,689
Profit and loss account (14,101,696) (13,448,293) (13,704,011)
_____ _____ _____
Shareholders' funds - equity 1,657,187 2,182,208 2,014,230
_____ _____ _____
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2005
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
30 September 30 September 31 March
2005 2004 2005
# # #
_____ _____ _____
Cashflow from operating activities (244,260) (669,194) (854,757)
Returns on investments and servicing of finance 19,326 24,791 48,435
Taxation received - 71,542 379,378
Capital expenditure (15,272) - (1,787)
_____ _____ _____
Cash outflow before management of liquid (240,206) (572,861) (428,731)
resources and financing
Financing 8,241 (10,910) (17,325)
_____ _____ _____
Decrease in cash in the period/year (231,965) (583,771) (446,056)
_____ _____ _____
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
For the six months ended 30 September 2005
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
30 September 30 September 31 March
2005 2004 2005
# # #
_____ _____ _____
Decrease in cash in the period/year (231,965) (583,771) (446,056)
Cash outflow/(inflow) from decrease in debt and 9,384 10,910 17,325
lease financing
_____ _____ _____
Changes in funds resulting from cash flows (222,581) (572,861) (428,731)
_____ _____ _____
Movement in net funds in the period/year (222,581) (572,861) (428,731)
Net funds at the start of the period/year 1,255,721 1,684,452 1,684,452
_____ _____ _____
Net funds at the end of the period/year 1,033,140 1,111,591 1,255,721
_____ _____ _____
RECONCILIATION OF OPERATING LOSS TO OPERATING CASH FLOWS
For the six months ended 30 September 2005
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
30 September 30 September 31 March
2005 2004 2005
# # #
_____ _____ _____
Operating loss (428,683) (488,019) (862,679)
Depreciation charge 7,861 16,738 27,399
Charge for share options 23,017 - -
Decrease/(increase) in stocks 6,833 25,441 41,437
Decrease/(increase) in debtors (136,461) 92,768 232,937
(Decrease)/increase in creditors 283,173 (316,122) (293,851)
_____ _____ _____
Net cash flow from operating activities (244,260) (669,194) (854,757)
_____ _____ _____
NOTES TO THE FINANCIAL STATEMENTS
1. The interim results for the six months ended 30 September 2005 are
unaudited. The financial information set out in this statement does not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985. The comparative figures for the financial year ended 31 March 2005 are
not the statutory accounts for the financial year but are abridged from those
accounts which have been reported on by the Group's auditors and delivered to
the Registrar of Companies. The report of the auditors was unqualified and did
not contain a statement under section 237 (2) or (3) of the Companies Act 1985.
2. The tax credit in the profit and loss account relates to the surrender by
the Group of Research and Development losses.
3. The interim results, which were approved by the Board of directors on 26
October 2005, are prepared on the basis of the accounting policies set out in
the annual financial statements of the Group for the year ended 31 March 2005.
4. Included within administration expenses is a provision for exceptional costs
relating to compensation for loss of office for Stephen Appelbee.
5. Whilst further progress has continued to be made by the Group during the
period, profitable trading is yet to be established. Cash will continue to be
absorbed until at least this point in time, and until further products become
income generating. The Board will continue to monitor the progress of the
acquisition, development and launch of new products and the financial position
in order to ensure that the group continues to have sufficient funding to
continue in business. For this reason, they continue to adopt the going concern
basis in preparing the financial statements.
6. Copies of this interim statement will be sent to shareholders on 8 November
2005 and will be available from the Group's registered office. The EGM will be
held in Wrexham on Wednesday 30 November 2005.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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