RNS Number:4083L
Maelor PLC
02 November 2006
2nd November 2006
Maelor plc
Interim Results
Maelor plc, the specialist healthcare products company, is pleased to announce
its interim results for the six months ended 30th September 2006.
Financial Highlights
* Turnover up 44% to #1.33 million (H1 2005: #923,000)
* Operating loss significantly reduced to #93,000 (H1 2005: #429,000)
* Interim loss per share of 0.22p (H1 2005: 1.17p)
* Cash balance maintained at #1.25 million (H1 2005: #1.24 million)
Operational Highlights
Good progress in implementation of new strategy:
* Building a specialist critical care business
* 1st six months of active Volplex(R) promotion - sales increase 43% vs
H1 2005
* Decision taken to develop ISOplexTM, a late stage complementary
critical care product
* MHRA approve licence to supply unlicensed medicines ("specials")
* Leveraging non critical care portfolio through efficient partnerships
* 10% increase in OptiFlo in-market sales vs H1 2005
* Collaboration with Plethora for micelle nanotechnology progressing
well
Commenting on the results CEO, Tim Wright, said:
"Five months ago, the Board outlined its vision of establishing Maelor as an
ambitious new force in specialist critical care medicine, while commercialising
our non-critical care portfolio through efficient partnerships.
"The new management team has worked determinedly over the last period to ensure
delivery against this vision. We have driven significant growth in our recently
launched brand Volplex, taken the decision to develop ISOplex, a late stage
complementary critical care product and been granted a licence by the MHRA to
sell unlicensed medicines ("specials"). In parallel we continue to see the
benefits of selecting and supporting capable partners, with the continued growth
of OptiFlo and exploitation of our micelle nanotechnology through Plethora
Solutions.
"The interim results reinforce the rapid progress our business is now making,
enabling the management team to look forward with confidence to realising our
vision of building a successful, profitable, specialist critical care business."
For further information contact:
Maelor plc
Tim Wright, Chief Executive Officer - 01978 810 153
Financial Dynamics
Billy Clegg / Ed Westropp - 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 30th September 2006 show substantially increased revenues, reduced losses and
a strong cash balance.
In June, together with our year end results, we announced the outcome of the
Board's strategic review, outlining our vision to establish Maelor as an
ambitious new force in specialist critical care medicine, while commercialising
our non-critical care portfolio through efficient partnerships.
In the last period the new management team has worked determinedly to ensure
delivery against this vision.
We have driven significant growth in our recently launched brand Volplex, taken
the decision to develop ISOplex, a late stage, complementary, critical care
product and been granted a licence by the Medicines and Healthcare products
Regulatory Agency ("MHRA") to supply unlicensed medicines ("specials"). In
parallel we continue to see the benefits of selecting and supporting capable
partners, with the continued growth of OptiFlo and exploitation of our micelle
nanotechnology through Plethora Solutions.
The 44% increase in turnover, significant reduction of operating losses to
#93,000, improved gross margin and sustained strong cash balance (#1.25 million)
reinforce the rapid progress our business is now making, enabling Maelor to look
forward with confidence to realising our vision of building a successful,
profitable, specialist critical care business.
Financial summary
Turnover for the six months to 30th September 2006 was #1.33 million (H1 2005:
#923,000) representing an increase of 44% over the period last year. This
significant increase can be attributed to the re-acquisition and growth of
Volplex, the continued sales and market share growth of OptiFlo, as well as the
licensing milestone payment received for our micelle lidocaine nanotechnology.
The Group's operating loss for the period was again significantly reduced to
#93k driven by the continued healthy sales growth, as well as the above
milestone payment. This milestone payment combined with further efficiencies in
manufacturing and supply has contributed to the improvement in gross margin.
Group cash balances at 30th September 2006 were #1.25 million, an improvement on
last year's H1 balance of #1.24 million, demonstrating that measures taken at
the end of calendar year 2005 to ensure efficient management of cash flow
continue to be effective.
Business summary
"Building a specialist critical care business"
During the period the management team has focused on growing sales of Volplex,
currently used in operating theatres and hospital wards to maintain blood
volume. The results of these efforts have seen a number of new hospitals
purchasing Volplex with in-market sales up 43% versus H1 2005. With substantial
room for market share growth the team is confident that we can continue to win
further new accounts and continue to grow our sales of Volplex.
Maelor is also focused on adding new products to the portfolio either through
in-licensing or development of late stage opportunities, which reinforce our
development and commercial expertise and presence. A critical aspect of this
strategy is building strong relationships with the critical care community to
identify potential products that will benefit their patients.
As a result of customer research the decision has been taken to develop ISOplex.
ISOplex in common with Volplex will be used in situations where an increase in
blood volume is required. ISOplex has been designed to very closely mimic
natural blood plasma, particularly in the balance of electrolytes. The use of
these more "isotonic" formulations is an area of significant interest amongst
critical care clinicians. The introduction of ISOplex will support Maelor's
strategy of driving both market share and market size in the gelatin segment of
the UK blood volume replacement market. Given Maelor's experience and existing
data in this sector it is anticipated that development will be relatively rapid
and inexpensive for a pharmaceutical product, with approval possible by the end
of 2008.
During the period Maelor has succeeded in gaining a licence from the MHRA to
sell un-licensed medicines. Generally known as "specials" these products can be
requested by physicians for use in patients where there is a specific
requirement and no medicine licensed in the UK to fulfill it. "Specials" can
either be products which have been licensed elsewhere in Europe and imported or
those that are manufactured in specifically approved UK facilities. This
initiative is intended to be a support service to critical care patients and
physicians; products provided are likely to fulfill niche areas of unmet need.
In addition to establishing closer relationships with the critical care
community this strategy will enable Maelor to gauge demand for products and
where this demand is sufficient, progress these to licence. An agreement has
recently been concluded to offer a portfolio of fluid support products,
currently licensed in Germany.
"Commercialising the non-critical care portfolio through efficient partnerships"
OptiFlo, the UK brand of catheter flushing solutions distributed by Bard,
continues to perform well, with sales up 10% versus H1 2005, and remains the UK
market leader with market share of 54% versus 49% (H1 2005) in a market that has
itself grown by 5%.
H1 2006 turnover incorporates the licensing milestone for our proprietary
micelle nanotechnology, micelle lidocaine. The agreement with Plethora, a
specialist urology company, is progressing well. Under the terms of the
agreement Plethora is responsible for product development and distribution and
Maelor is entitled to milestone and royalty payments. Micelle lidocaine is in
development for the treatment of interstitial cystitis and painful bladder
syndrome. These conditions are estimated to afflict up to two million women in
the United States and Europe.
As we identified in the recent strategic review, a primary activity of recent
months has been to provide clarity and focus to the business. The product
portfolio has been rationalised in line with this plan as has our geographical
focus to prioritise our efforts in the UK. While assessment of the opportunity
for ContiSol in the US and regulatory process for Volplex in China continue,
these activities are considered secondary to our focus of building a specialist
critical care business in the UK.
Outlook
The announcement of our 2005/06 results on 1st June enabled us to set out a
clear vision for Maelor and to clarify a number of outstanding questions from
shareholders. We committed at that time to delivering the milestones that will
enable us to become established as a successful, profitable, specialist critical
care business. The Board is acutely aware of the importance of Maelor delivering
against these promises.
The growth of Volplex, the addition of ISOplex and the in-licensing of a
specials portfolio, coupled with the continued exploitation of the non-critical
care products are the first steps towards delivering against this commitment.
The Board is confident that Maelor is now delivering against clear objectives,
an achievement which is reinforced by continued positive trading since the
period end. We are confident that Maelor will continue to make progress and the
Board wishes to thank all members of the Maelor team for their commitment as we
continue building a leading, specialist critical care business.
Geoff McMillan, Tim Wright
Chairman, Chief Executive Officer
Consolidated Profit and Loss Account
for the six months ended 30 September 2006
Unaudited Unaudited Audited Year ended
Six months ended Six months ended 31 March 2006
30 September 2006 30 September 2005 #
# #
Turnover 1,332,966 923,272 1,858,750
Cost of sales (714,094) (559,172) (1,117,782)
Gross profit 618,872 364,100 740,968
Research and development (44,502) (79,606) (89,888)
Sales and administrative expenses (667,070) (713,177) (1,259,627)
Operating loss (92,700) (428,683) (608,547)
Interest receivable and similar income 23,929 28,324 51,784
Interest payable (6,170) (6,907) (13,351)
Loss on ordinary activities before taxation (74,941) (407,266) (570,114)
Taxation - 9,581 (90,478)
Retained loss attributable to the Group (74,941) (397,685) (660,592)
Basic loss per ordinary share (0.22)p (1.17)p (1.93)p
Diluted loss per ordinary share (0.22)p (1.17)p (1.93)p
The Group's activities are classified as continuing.
No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the Consolidated Profit and
Loss Account.
Consolidated Balance Sheet
at 30 September 2006
Unaudited Unaudited Audited
30 September 2006 30 September 2005 31 March 2006
# # #
Fixed assets
Tangible assets 375,551 392,004 383,305
Current assets
Stock 129,546 125,305 205,590
Debtors - due within one year 457,174 808,915 379,374
- due after more than one year - 80,000 -
Cash at bank and in hand 1,251,980 1,235,727 1,296,463
1,838,700 2,249,947 1,881,427
Creditors: amounts falling due within one year (733,152) (801,674) (696,553)
Net current assets 1,105,548 1,448,273 1,184,874
Total assets less current liabilities 1,481,099 1,840,277 1,568,179
Creditors: amounts falling due after more than
one year (161,760) (183,090) (173,899)
Net assets 1,319,339 1,657,187 1,394,280
Capital and reserves
Called up share capital 3,428,083 3,428,083 3,428,083
Shares to be issued 23,017 23,017 23,017
Share premium account 12,154,094 12,154,094 12,154,094
Revaluation reserve 149,909 153,689 151,169
Profit and loss account (14,435,764) (14,101,696) (14,362,083)
Shareholders' funds - equity 1,319,339 1,657,187 1,394,280
Consolidated Cash Flow Statement
for the six months ended 30 September 2006
Unaudited Six months Unaudited Six Audited Year
ended 30 September months ended 30 ended
2006 September 2005 31 March 2006
# # #
Cash flow from operating activities (50,236) (244,260) (300,746)
Returns on investments and servicing of 17,759 19,326 38,433
finance
Taxation received - - 108,487
Capital expenditure (1,276) (15,272) (15,857)
Cash outflow before management of liquid
resources and financing (33,753) (240,206) (169,683)
Financing (10,730) 8,241 (1,546)
Decrease in cash in the period/year (44,483) (231,965) (171,229)
Reconciliation of Net Cash Flow to Movement in Net Funds
for the six months ended 30 September 2006
Unaudited Six months Unaudited Six Audited Year
ended 30 September months ended 30 ended
2006 September 2005 31 March 2006
# # #
Decrease in cash in the period/year (44,483) (231,965) (171,229)
Cash outflow from decrease in debt and lease 10,730 9,384 19,171
financing
Changes in funds resulting from cash flows (33,753) (222,581) (152,058)
Movement in net funds in the period/year (33,753) (222,581) (152,058)
Net funds at the start of the period/year 1,103,663 1,255,721 1,255,721
Net funds at the end of the period/year 1,069,910 1,033,140 1,103,663
Reconciliation of Operating Loss to Operating Cash Flows
for the six months ended 30 September 2006
Unaudited Six months Unaudited Six Audited Year
ended 30 September months ended 30 ended
2006 September 2005 31 March 2006
# # #
Operating loss (92,700) (428,683) (608,547)
Depreciation charge 9,030 7,861 16,898
Loss on disposal of fixed asset - - 247
Charge for share options - 23,017 23,017
Decrease/(increase) in stocks 76,044 6,833 (73,452)
(Increase)/decrease in debtors (77,800) (136,461) 162,443
Increase in creditors 35,190 283,173 178,648
Net cash flow from operating activities (50,236) (244,260) (300,746)
Notes to the Financial Statements
1. The interim results for the six months ended 30 September 2006 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 2006 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 interim results, which were approved by the Board of Directors on 1
November 2006, are prepared on the basis of the accounting policies that will be
applied in the statutory accounts of the Group for the year ending 31 March
2007, in accordance with UK GAAP.
3. 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 that point in time. The Board will continue to monitor
the financial position in order to ensure that the Group has sufficient funding
to remain in business. For this reason, they continue to adopt the going concern
basis in preparing the financial statements.
4. Copies of this interim report are available from the Group's registered
office at:
Riversdale
Cae Gwilym Road
Newbridge
Wrexham
LL14 3JG
Company Information
Directors
H G McMillan (Non-executive Chairman)
T Wright (Chief Executive Officer)
N J Goldsmith (Finance Director - appointed 12 June 2006)
A Hardy (Operations Director)
J H Gregory (Non-executive Director)
P Murray (Non-executive Director)
Secretary
N J Goldsmith (appointed 12 June 2006)
T Wright (appointed 24 May 2006 - resigned 12 June 2006)
M A Cope (resigned 24 May 2006)
Registered office
Riversdale
Cae Gwilym Road
Newbridge
Wrexham
LL14 3JG
Company registration number
3337415
Brokers Solicitors
Lewis Charles Securities Limited Brabners Chaffe Street
4-7 Chiswell Street 1 Dale Street
London EC1Y 4UP Liverpool
L2 2ET
Nominated advisors Principal bankers
City Financial Associates Limited HSBC
Pountney Hill House 17-19 Regent Street
6 Laurence Pountney Hill Wrexham
London EC4R 0BL LL11 1RY
Auditors Registrars
Baker Tilly Capita Registrars
Number One The Registry
Old Hall Street 34 Beckenham Road
Liverpool Beckenham
L3 9SX Kent
BR3 4TU
This information is provided by RNS
The company news service from the London Stock Exchange
END
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