RNS Number:7732E
Maelor PLC
03 November 2004
3 November 2004
Maelor PLC - Interim Results
Maelor plc, the specialist healthcare products company, announces its interim
results for the six months ended 30 September 2004.
Financial highlights
* Turnover up 159% to #832k (H1 2003: #322k)
* Loss down 44% to #408k (H1 2003: #727k)
* Operating costs down 17% to #797k (H1 2003: #965k)
* Loss per share of 1.19p (H12003: 2.13p)
* Cash balance of #1.33 million (31 March 2004: #1.91 million)
Operating highlights
* OptiFlo UK community market share 44% (H1 2003: 39%)
* OptiFlo to be launched in Republic of Ireland
* ContiSol approved in Canada
* Maelor Oral Syringes launched
Commenting on the results Chairman, Alastair Macpherson, said:
"We are very pleased to have significantly increased revenues and reduced losses
in the first half of our financial year. We have eliminated seasonal variations
in OptiFlo sales, and expect this to be reflected in our year-end figures to
March 2005.
"The figures we report today reinforce our belief that Maelor is on track for
profitability, without the need to raise any further working capital. We remain
committed to grow sales of the existing products of the Company and to augment
that growth by supplementing Maelor's current portfolio through the acquisition
of compatible businesses or products."
For further information contact:
Maelor plc 0207 831 3113 today
Stephen Appelbee, CEO 01978 810 153
Financial Dynamics
Ben Atwell/Lucy Briggs 020 7831 3113
Chairman and chief executive's statement
"We are very pleased to have significantly increased revenues and reduced losses
in the first half."
We are pleased to report that the Company's interim results for the six months
to 30 September 2004 show significantly increased revenues and reduced losses,
and therefore demonstrate further progress towards profitability.
Sales of our two major products, OptiFloTM and Volplex(R), continue to make good
progress as a result of our continued focus on the commercialisation of our
portfolio. We believe our newer brands, ContiSolTM and Maelor Oral Syringes,
will contribute increasingly to Maelor's profitability in future years.
We are pleased to welcome Ann Hardy as an Executive Director to the Board. She
has been appointed to the new post of Operations Director, and is responsible
for the commercial and technical operations of the Company.
Financial results
Revenue during the six months to 30 September 2004 amounted to #832,362, a 159%
increase over the same period last year. The Company's loss for the six months
was #407,532, a reduction of 44% over the same period last year. Continuing
tight control over our costs has resulted in this substantial reduction in
Maelor's losses. As at 30 September 2004 cash balances amounted to #1.33
million.
Greatly increased income from OptiFlo in the first half of the financial year
was largely responsible for the strong rise in revenue. Whereas in former years
sales had been biased to the winter months, we are now receiving orders from our
UK distributor, Bard Limited (Bard), on a more regular basis throughout the
year. This will result in our total annual revenue from sales of OptiFlo being
more evenly split between the first and second halves of our financial year.
At the same time sales of Volplex have continued to perform strongly.
Approved products
Volplex
Our blood plasma volume replacement product, Volplex, has experienced an
important six months in its development. Sales in the UK remain strong, and we
have appointed distributors for the product in Brazil (Zodiac Productos
Farmaceuticos) and in China and South Korea (Helicon Pty). Regulatory approval
procedures are now under way in these markets. We can also report that a
marketing authorisation application has now been made in Australia. Further
improvements to our manufacturing methods should result in substantial cost
savings and an improved gross profit from Volplex in all territories in which it
is launched.
Worldwide interest in Volplex is increasing and we are in active discussions
with a number of potential partners in North America, Europe, Asia and the
Pacific Rim.
The technical regulatory issue that was preventing us from launching Volplex in
Argentina has been resolved. We now expect that launch to happen in 2005,
although it is unlikely to have any material impact in the Company's current
financial year. We are waiting for confirmation of the marketing approval for
Volplex in Bangladesh.
OptiFlo
Bard distributes our range of urethral catheter maintenance solutions in the UK
under the OptiFlo brand. In August 2004, (the last month for which we have
audited data) OptiFlo's share of the UK community prescription market hit a
record 44% (source: IMS), up from 39% a year ago. We expect our total annual
sales of OptiFlo in the UK to continue to grow at a similar rate for the
foreseeable future. Bard remains enthusiastically committed to this product and
the continuing success of its marketing efforts has resulted not only in
increased sales, but also in the growth of the overall market.
As a result of discussions with Bard regarding the most appropriate strategy for
distributing OptiFlo, a regulatory application has been made in the Republic of
Ireland. At the same time, it was decided to no longer make the product
available in Italy.
ContiSol
Our own brand of urethral catheter maintenance solutions is sold under the trade
name ContiSol, and is currently available in Spain and Greece.
In May 2004 we received regulatory approval for ContiSol in Canada, and we are
currently seeking a partner for that market. We are also pleased to report that
a major independently funded clinical trial in Canada is now recruiting its
first patients, and should provide valuable clinical evidence to promote the
benefits of ContiSol to prescribers and regulatory authorities in both Canada
and the United States.
Maelor Oral Syringes
During the period, we launched Maelor Oral Syringes. As this is a mainly
tender-driven market in the UK, sales, as expected, have been modest to date and
we will need some time to establish our marketing presence. The concept has been
well accepted, and we look forward to further progress with this product.
TendaGelTM
The launch of this innovative product has been delayed due to the unforeseen
collapse in the world market prices of anaesthetic lubricant gels. Together with
our distribution partner, Bard, we are not prepared to accept any compromise on
quality, as TendaGel has always been positioned as a premium product, and we are
currently negotiating supply prices with potential manufacturers. Whatever the
outcome from these negotiations, TendaGel is unlikely to become a major
contributor to Maelor's turnover in the near future.
Development products
Micelle technology
We have recently completed the first stage of the development project agreed
with a US-based pharmaceutical company, which was reported earlier in 2004. We
await their internal review of our study report.
We remain in discussions regarding the future development of micelle propofol
with a number of pharmaceutical companies in both Europe and the United States.
Board appointment
In July 2004, we were pleased to welcome Ann Hardy to our Board as Operations
Director. Ann joined Maelor in 2000 as Technical Manager, having previously held
operational management positions in Glaxo and Medeva. Since joining Maelor, she
has held several senior roles in research and development, and under her
guidance Volplex, ContiSol and Maelor Oral Syringes have been developed and
brought to market.
Outlook
We are very pleased to have significantly increased revenues and reduced losses
in the first half of our financial year. We have eliminated seasonal variations
in OptiFlo sales, and expect this to be reflected in our year-end figures to
March 2005.
The figures we report today reinforce our belief that Maelor is on track for
profitability, without the need to raise any further working capital. We remain
committed to grow sales of the existing products of the Company and to augment
that growth by supplementing Maelor's current portfolio through the acquisition
of compatible businesses or products.
Alastair Macpherson Stephen Appelbee
Chairman Chief Executive Officer
Consolidated profit and loss account
for the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
______ ______ ______
Turnover 832,362 321,954 1,340,005
Cost of sales (523,722) (143,367) (805,080)
______ ______ ______
Gross profit 308,640 178,587 534,925
Research and development (261,809) (400,892) (680,349)
Administration (534,850) (563,885) (1,123,665)
______ ______ ______
Operating loss (488,019) (786,190) (1,269,089)
Interest receivable and similar income 33,904 43,080 75,404
Interest payable (9,113) (1,380) (6,733)
______ ______ ______
Loss on ordinary activities before taxation (463,228) (744,490) (1,200,418)
Taxation recoverable 55,696 17,930 82,402
______ ______ ______
Retained loss attributable to the Group (407,532) (726,560) (1,118,016)
______ ______ ______
Basic loss per ordinary share (1.19)p (2.13)p (3.28)p
Diluted loss per ordinary share (1.19)p (2.13)p (3.28)p
______ ______ ______
The Group's activities are classified as continuing.
There were no recognised gains or losses in the above financial period, other
than the losses noted above.
Consolidated balance sheet
at 30 September 2004
Unaudited Unaudited Audited
30 September 30 September 31 March
2004 2003 2004
# # #
______ ______ ______
Fixed assets
Tangible assets 305,217 344,623 321,955
______ ______ ______
Current assets
Stock 148,134 135,340 173,575
Debtors 1,094,000 583,520 1,202,613
Cash at bank and in hand 1,329,977 2,207,002 1,913,748
______ ______ ______
2,572,111 2,925,862 3,289,936
______ ______ ______
Creditors: amounts falling due within one year (507,527) (286,021) (807,353)
______ ______ ______
Net current assets 2,064,584 2,639,841 2,482,583
______ ______ ______
Total assets less current liabilities 2,369,801 2,984,464 2,804,538
Creditors: amounts falling due after more
than one year (187,593) (3,268) (214,798)
______ ______ ______
Net assets 2,182,208 2,981,196 2,589,740
______ ______ ______
Capital and reserves
Called up share capital 3,410,458 3,410,458 3,410,458
Share premium account 12,154,094 12,154,094 12,154,094
Revaluation reserve 65,949 66,969 66,459
Profit and loss account (13,448,293) (12,650,325) (13,041,271)
______ ______ ______
Shareholders' funds - equity 2,182,208 2,981,196 2,589,740
______ ______ ______
Consolidated cash flow statement
for the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
______ ______ ______
Cashflow from operating activities (669,194) (1,118,313) (1,659,890)
Returns on investments and servicing of finance 24,791 43,512 68,671
Taxation received 71,542 - -
Capital expenditure - (11,362) (11,781)
______ ______ ______
Cash outflow before management of liquid
resources and financing (572,861) (1,086,163) (1,603,000)
Financing (10,910) (1,491) 222,092
______ ______ ______
Decrease in cash in the period/year (583,771) (1,087,654) (1,380,908)
______ ______ ______
Reconciliation of net cash flow to movement in net funds
for the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
______ ______ ______
Decrease in cash in the period/year (583,771) (1,087,654) (1,380,908)
Cash flow from changes in debt and lease financing 10,910 1,491 (222,092)
______ ______ ______
Changes in funds resulting from cash flows (572,861) (1,086,163) (1,603,000)
Net funds at the start of the period/year 1,684,452 3,287,452 3,287,452
______ ______ ______
Net funds at the end of the period/year 1,111,591 2,201,289 1,684,452
______ ______ ______
Reconciliation of operating loss to operating cash flows
for the six months ended 30 September 2004
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2004 2003 2004
# # #
______ ______ ______
Operating loss (488,019) (786,190) (1,269,089)
Depreciation charge 16,738 28,809 51,896
Profit on sale of fixed assets - (1,839) (1,839)
Decrease/(increase) in stocks 25,441 (35,265) (73,500)
Decrease/(increase) in debtors 92,768 29,460 (523,349)
(Decrease)/increase in creditors (316,122) (353,288) 155,991
______ ______ ______
Net cash flow from operating activities (669,194) (1,118,313) (1,659,890)
______ ______ ______
Notes to the financial statements
for the six months ended 30 September 2004
1. The interim results for the six months ended 30 September 2004 are
unaudited. The financial information set out in this statement does not
constitute statutory accounts within the meaning of the Companies Act 1985.
The comparative figures for the financial year ended 31 March 2004 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 1
November 2004, 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
2004.
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.
Copies of this interim statement will be sent to shareholders on 12 November
2004 and will be available from the Group's registered office at:
Riversdale
Cae Gwilym Road
Newbridge
Wrexham LL14 3JG
This information is provided by RNS
The company news service from the London Stock Exchange
END
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