TIDMREDX
RNS Number : 6020B
Redx Pharma plc
10 June 2019
REDX PHARMA PLC
("Redx" or "the Group")
Interim results for the six months ended 31 March 2019
Delivering on strategic objectives
Alderley Park, June 10 2019 Redx (AIM: REDX), the drug discovery
and development Group focused on cancer and fibrosis, today
announces unaudited results for the six months ended 31 March
2019.
Lisa Anson, Chief Executive Officer commented: "In our 2018
annual report the Board and Management set out our strategy,
focused on moving RXC004, our porcupine inhibitor programme for Wnt
driven cancer, back into the clinic. We also set out our plan to
move RXC006, a porcupine inhibitor targeted at idiopathic pulmonary
fibrosis, into preclinical development as well as selecting a
development candidate for our ROCK2 programme for fibrosis.
Throughout the first six months of the year we have made progress
against these aims, most notably reinitiating our phase 1 clinical
trial of RXC004. We aim to make further progress over the next six
months, with our RXC004 study ongoing and our ongoing fibrosis
programmes.
Today, we announced that we have signed a short-term loan
agreement of up to GBP2.5 million from Moulton Goodies Ltd (MGL),
the Company's largest shareholder, which extends our cash runway
into the fourth quarter of 2019. We continue to be in active
discussions with shareholders and third-party healthcare specialist
investors regarding longer-term funding of the Group and are also
looking at the potential value realisation of the pan-RAF research
programme.
The Board and I are confident in the potential of our assets and
look forward to updating the market on our financing plans as well
as our operational progress."
Operational Highlights
-- Phase 1 clinical trial of lead oncology asset, RXC004
(Porcupine inhibitor) reinitiated with approval from the UK's
Medicines and Healthcare products Regulatory Agency (MHRA)
-- RXC004 posters presented at American Association for Cancer
Research (AACR) meeting and the National Cancer Research Institute
(NCRI) 2018 Cancer Conference
-- RXC006 (Porcupine inhibitor) nominated as a development
candidate; first-in-class treatment for idiopathic pulmonary
fibrosis
-- First public disclosure of RXC006 preclinical data at the
Advances in Fibrosis Drug Discovery Conference in Cambridge,
USA
-- ROCK2 programme in vivo data reported from three independent
preclinical animal models of lung, kidney and liver fibrosis
-- Dr James Mead appointed as full time Chief Financial Officer
and an Executive Director of the Board, effective 1 February
2019
-- Poster presentations at high profile medical conferences
o Two posters, demonstrating the direct tumour targeting and
immuno-oncology effects of RXC004, presented at American
Association for Cancer Research (AACR) meeting
o Poster presentation of positive RXC004 data from preclinical
studies at the National Cancer Research Institute (NCRI) 2018
Cancer Conference
o ROCK2 inhibitor programme poster presented at American Society
of Nephrology (ASN) Kidney Week 2018
Financial Highlights
-- Cash balance at 31 March 2019 of GBP3.3m (31 March 2018:
GBP10.3m, 30 September 2018: GBP6.5m), highlighting strong cash
management
-- Continued control of operating expenses in period GBP5m (H1 2018: GBP5.2m)
-- Recovery of derecognised loan, generating GBP0.9m cash receipt
-- Loss for the period GBP2.3m (H1 2018: GBP4.6m loss)
-Ends-
For further information, please contact:
Redx Pharma Plc T: +44 1625 469
918
Lisa Anson, Chief Executive Officer
James Mead, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated Advisor & T: +44 20 7894
Broker) 7000
Phil Davies
WG Partners LLP (Joint Broker) T: +44 20 3705
9330
Claes Spång/ Chris Lee/ David Wilson
FTI Consulting T: +44 20 3727
1000
Simon Conway/Ciara Martin
About Redx Pharma Plc
Redx is a UK biotechnology Group whose shares are traded on AIM
(AIM:REDX). Redx is focused on creating and developing first, or
potentially best in class drugs, in specific areas of cancer and
fibrosis that address significant unmet medical need. Redx has an
in-house discovery team with proven world-class chemistry
capabilities.
CHIEF EXECUTIVE'S STATEMENT
In December 2018, when I announced the financial results for the
year ended 30(th) September 2018, I stated that Redx had emerged as
a stronger and more professional organisation that could look
forward to an exciting future. We now present our progress and
financial results for Redx Pharma Plc for the six-month period
ended 31(st) March 2019, which demonstrate the beginning of this
journey.
We have made significant progress with our R&D programmes
and most importantly we have met our commitment to re-initiate
clinical evaluation of our lead programme RXC004. In fibrosis, we
have nominated RXC006 as our first development candidate which is
progressing through preparations for the clinic.
Finally, during the period we appointed Dr. James Mead as CFO,
which completes our new Executive team.
Research & Development
Redx's lead asset RXC004 is an oral porcupine inhibitor aimed at
treating cancer driven by the Wnt pathway, either as monotherapy or
in combination. Following successful reformulation of the drug
product and receipt of regulatory and ethical clearance, the Phase
1 clinical trial to study the safety and tolerability of RXC004 in
cancer patients (NCT03447470) was reinitiated with a new starting
dose of 0.5mg. One patient is close to completion of cycle 1 of
daily RXC004 treatment and two more patients are planned for
enrolment in this first cohort in the coming weeks. Redx and its
clinical investigators believe that the required RXC004 exposures
can be achieved at doses in the range of 0.5-3.0mg and anticipate
initial safety and tolerability results from the study during H2
2019 with full results in 2020.
During the period, we also made substantial progress in our
fibrosis initiatives. Our lead anti-fibrotic compound, RXC006, is
an oral porcupine inhibitor designed for use in the treatment of
the life threatening disease, idiopathic pulmonary fibrosis (IPF).
Following its nomination as a development candidate late last year,
RXC006 has successfully progressed into manufacturing and toxicity
studies aimed at taking RXC006 into the clinic during the first
half of 2020. In our ROCK2 fibrosis project, we have demonstrated
robust anti-fibrotic effects in a range of industry standard
models. The lead agent showed inhibition of fibrosis end points in
disease models of kidney, liver and lung (IPF) fibrosis and we now
aim to progress this to a development candidate nomination during
the second half of this year.
In line with our previously announced strategy to partner our
pan-RAF assets, we can confirm that we are in an exclusive
negotiating period.
With respect to Intellectual Property, we now have been granted
US composition of matter patents covering RXC004, RXC006 and our
GI-targeted ROCK compounds.
Finance
The interim results to 31 March 2019 reflect a period of
significant activity. Through a continued tight control of
operating expenses and the benefit of reduced accommodation costs,
we have been able to push ahead with re-initiating clinical trials
on our RXC004 programme, and commenced pre-clinical studies on our
RXC006 programme whilst limiting overall expenditure to levels
comparable to the prior year. Regardless of this we continue to
strive to further reduce the cost base and have specific
initiatives in place.
During the period, continued efforts by the Group resulted in
two significant cash inflows. Firstly, in February, we recovered a
loan made to Redag Crop Protection Ltd. which had previously been
derecognised in the 2017 accounts. Including the accrued interest,
this represented a cash inflow of GBP869,000.
In addition, the Group was able to agree its 2016 and 2017
claims for tax refunds with HMRC on the enhanced basis of Research
and Development tax credits, rather than Research and Development
Expenditure credits, which generated repayments of GBP1.7m. Future
claims will also be submitted on this basis.
Cash expended in reducing trade and other payables has decreased
significantly from the comparable period last year, which included
a significant number of items relating to the period of
Administration and were, as such, legacy in nature.
The cash position at the end of March 2019 was GBP3.3m compared
to GBP10.3m at the end of March 2018.
The Board estimate that the cash held by the Group, together
with known receivables and the loan from MGL, will be sufficient to
support the current level of activities into the fourth quarter of
2019. The Board are continuing to explore sources of finance
available to the Group. Based upon advanced discussions with a
number of existing and potential investors, together with the
likelihood of value realisation from the pan-RAF research programme
and specific measures initiated to reduce the company's operational
cost base, the Board has a reasonable expectation that it will be
able to secure sufficient cash inflows for the Group to continue
its activities for not less than 12 months from the date of
approval of these interim statements. The Board is greatly
encouraged by the advanced state and positive nature of these
various initiatives, although more time is required to conclude
them and there is no guarantee that any of them will be
satisfactorily concluded.
Outlook
As previously highlighted, the Board continues to explore a
number of opportunities to strengthen the balance sheet and is
working to deliver this as soon as possible. Our management team,
strategy and pipeline are in a good position, which has enabled us
to progress good interactions on strengthening our balance sheet.
It is imperative that we now conclude some of these discussions to
secure the cash flow to move the business forward.
Finally, I would like to thank the shareholders for their
support and especially pay tribute to the staff who have
steadfastly remained committed whilst we work to secure the
Company's long-term viability by attracting additional third party
funding and partnership agreements.
Lisa Anson
Chief Executive Officer
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Half Year Half Year Year to
to 31 March to 31 30 September
2019 March 2018 2018
Note GBP000 GBP000 GBP000
Revenue 2 - 129 129
Operating expenses (4,964) (5,172) (10,606)
Onerous lease charge 11 4 - (752)
Recovery of derecognised asset 3 869 - -
Administration costs 4 - (177) (177)
Reorganisation costs 5 - (215) (215)
Release of accrued accommodation
expenses 6 - - 548
Share based compensation 7 19 (162) (282)
Other operating income 20 637 1,186
------------- ------------ --------------
Loss from operations (4,052) (4,960) (10,169)
Finance costs 8 (36) - (1)
Finance income 8 5 16 24
------------- ------------ --------------
Loss before taxation (4,083) (4,944) (10,146)
Income tax 9 1,762 341 1,301
------------- ------------ --------------
Total comprehensive loss for
period attributable to owners
of Redx Pharma plc (2,321) (4,603) (8,845)
============= ============ ==============
Pence Pence Pence
Loss per share
- basic & diluted 10 (1.8) (3.6) (7.0)
Consolidated Statement of Financial Position
Unaudited Unaudited Audited
31 March 31 March 30 September
2019 2018 2018
Note GBP000 GBP000 GBP000
Assets
Property, plant and equipment 175 238 191
Intangible assets 421 427 423
Total non-current assets 596 665 614
---------- ---------- -------------
Trade and other receivables 717 2,207 2,023
Cash and cash equivalents 3,314 10,318 6,471
Current tax 1,530 653 1,211
Total current assets 5,561 13,178 9,705
---------- ---------- -------------
Total assets 6,157 13,843 10,319
---------- ---------- -------------
Liabilities
Current liabilities
Trade and other payables 2,144 3,957 3,803
Provisions 11 405 - 147
---------- ---------- -------------
Total current liabilities 2,549 3,957 3,950
Non-current liabilities
Provisions 11 184 - 605
Total liabilities 2,733 3,957 4,555
---------- ---------- -------------
Net assets 3,424 9,886 5,764
========== ========== =============
Equity
Share capital 1,265 1,265 1,265
Share premium 33,263 33,263 33,263
Share-based compensation 1,066 1,042 1,162
Capital redemption reserve 1 1 1
Retained deficit (32,171) (25,685) (29,927)
Equity attributable to
shareholders 3,424 9,886 5,764
========== ========== =============
Consolidated Statement of Changes in Equity
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Share Share Share-based Capital Retained Total
capital premium payment redemp'n deficit equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Movements by half
year
As at 30 September
2017 1,265 33,263 880 1 (21,082) 14,327
---------- ---------- ------------ ---------- ---------- ----------
Transactions with - - - - - -
owners in their capacity
as owners
Loss and total comprehensive
income for the period - - - - (4,603) (4,603)
Share-based compensation - - 162 - - 162
---------- ---------- ------------ ---------- ---------- ----------
As at 31 March 2018 1,265 33,263 1,042 1 (25,685) 9,886
---------- ---------- ------------ ---------- ---------- ----------
Transactions with - - - - - -
owners in their capacity
as owners
Loss and total comprehensive
income for the period - - - - (4,242) (4,242)
Share-based compensation - - 120 - - 120
As at 30 September
2018 1,265 33,263 1,162 1 (29,927) 5,764
---------- ---------- ------------ ---------- ---------- ----------
Transactions with - - - - - -
owners in their capacity
as owners
Loss and total comprehensive
income for the period - - - - (2,321) (2,321)
Share-based compensation - - (19) - - (19)
Release of share options
lapsed in period - - (77) - 77 -
As at 31 March 2019 1,265 33,263 1,066 1 (32,171) 3,424
========== ========== ============ ========== ========== ==========
Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
Half Year Half Year Year to
to 31 March to 31 30 September
2019 March 2018 2018
GBP000 GBP000 GBP000
Net cash flow from operating activities
Loss for the period (2,321) (4,603) (8,845)
Adjustments for:
Income tax (1,762) (341) (1,301)
Finance costs (net) 31 (16) (23)
Depreciation and amortisation 44 88 164
Share based compensation (19) 162 282
Onerous lease provision (4) - 752
Release of accrued accommodation
expenses - - (548)
Recovery of derecognised asset (869) - -
Profit on disposal of assets (11) (3) (17)
Movements in working capital
Decrease in trade and other receivables 1,059 266 572
Decrease in trade and other payables (1,854) (9,269) (8,963)
Cash used in operations (5,706) (13,716) (17,927)
Tax credit received 1,689 358 727
Interest received 6 16 23
------------- ------------ --------------
Net cash used in operations (4,011) (13,342) (17,177)
------------- ------------ --------------
Cash flows from investing activities
Sale of property plant and equipment 11 8 23
Purchase of property, plant and
equipment (26) (106) (132)
Net cash used in investing activities (15) (98) (109)
------------- ------------ --------------
Cash flows from financing activities
Interest paid - (48) (49)
Loan recovered 869 - -
Net cash from financing activities 869 (48) (49)
------------- ------------ --------------
Net decrease in cash and equivalents (3,157) (13,488) (17,335)
Cash and cash equivalents brought
forward 6,471 23,806 23,806
Cash and cash equivalents carried
forward 3,314 10,318 6,471
============= ============ ==============
Notes to the Financial Statements
1. Basis of preparation and accounting policies
1.01 Description of Group and approval of the consolidated interim financial statements
Redx Pharma plc ("Redx" or "the Company") is a limited liability
company incorporated and domiciled in the UK. Its shares are quoted
on AIM, a market operated by The London Stock Exchange. The
principal activity of the Group is drug discovery, pre-clinical
development and licensing.
The Group's consolidated interim financial statements are
presented in pounds sterling, which is the Group's presentational
currency, and all values are rounded to the nearest thousand
(GBP000) except where indicated otherwise.
The consolidated interim financial statements were approved by
the Board of Directors on 7 June 2019.
1.02 Basis of preparation
The Group's consolidated interim financial statements, which are
unaudited, consolidate the results of Redx Pharma plc and its
subsidiary undertakings made up to 31 March 2019. The Group's
accounting reference date is 30 September.
The financial information contained in these interim financial
statements does not constitute statutory accounts as defined in
section 434 of the Companies Act 2006. It does not therefore
include all of the information and disclosures required in the
annual financial statements. The financial information for the six
months ended 31 March 2019 and 31 March 2018 is unaudited.
The information for the period ended 30 September 2018 has been
extracted from the statutory accounts for the year ended 30
September 2018, prepared in accordance with International Financial
Reporting Standards as adopted by the European Union (IFRS). The
statutory accounts were approved by the Board on 18 November 2018
and delivered to the Registrar of Companies. The audited financial
statements of the Group in respect of the year ended 30 September
2018 received an unqualified audit opinion and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
The audit report included a reference to a material uncertainty
over the Groups ability to continue as a going concern, to which
the auditor drew attention by way of emphasis.
1.03 Significant accounting policies
The accounting policies used in the preparation of the financial
information for the six months ended 31 March 2019 are in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards ('IFRS') as adopted by
the European Union and are consistent with those adopted in the
annual statutory financial statements for the year ended 30
September 2018 and those which will be adopted in the annual
statutory financial statements for the year ending 30 September
2019. The Group has applied IFRS 15 and IFRS 9. There has been no
impact to the consolidated Group results in the current or prior
periods on adoption of these standards.
While the interim financial information included has been
prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards (IFRS) as
adopted by the European Union (EU), the interim financial
statements do not include sufficient information to comply with
IFRS.
The Group has not applied IAS 34, Interim Financial Reporting,
which is not mandatory for UK AIM listed Groups, in the preparation
of this interim financial report.
1.04 Segmental information
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The Board of Directors and the Chief Financial Officer are together
considered the chief operating decision-maker and as such are
responsible for allocating resources and assessing performance of
operating segments.
The Directors consider that there are no identifiable business
segments that are subject to risks and returns different to the
core business. The information reported to the Directors, for the
purposes of resource allocation and assessment of performance is
based wholly on the overall activities of the Group.
The Group has therefore determined that it has only one
reportable segment.
1.05 Going concern
As part of their going concern review the Directors have
followed the guidelines published by the Financial Reporting
Council entitled "Guidance on the Going Concern Basis of Accounting
and Reporting on Solvency Risks - Guidance for directors of
companies that do not apply the UK Corporate Governance Code".
The Group and Parent Company are subject to a number of risks
similar to those of other development stage pharmaceutical
companies. These risks include, amongst others, generation of
revenues in due course from the development portfolio and risks
associated with research, development, testing and obtaining
related regulatory approvals of its pipeline products. Ultimately,
the attainment of profitable operations is dependent on future
uncertain events which include obtaining adequate financing to
fulfil the Group's commercial and development activities and
generating a level of revenue adequate to support the Group's cost
structure.
The Group made a net loss of GBP2.3m during the period, and at
31 March 2019 had total equity of GBP3.4m including an accumulated
deficit of GBP32.2m. As at that date, the Group had cash and cash
equivalents of GBP3.3m.
The Directors have prepared detailed financial forecasts and
cash flows looking beyond 12 months from the date of the approval
of these interim financial statements. In developing these
forecasts, the Directors have made assumptions based upon their
view of the current and future economic conditions that are
expected to prevail over the forecast period. The Directors
estimate that the cash held by the Group together with known
receivables and the loan form MGL will be sufficient to support the
current level of activities into the fourth quarter of the calendar
year 2019. The Directors are continuing to explore sources of
finance available to the Group. Based upon advanced discussions
with a number of existing and potential investors, together with
the likelihood of value realisation from the pan-RAF research
programme and specific measures initiated to reduce the company's
operational cost base, they have a reasonable expectation that they
will be able to secure sufficient cash inflows for the Group to
continue its activities for not less than 12 months from the date
of approval of these interim financial statements; they have
therefore prepared the interim financial statements on a going
concern basis.
Because the additional finance is not committed at the date of
approval of these interim financial statements, these circumstances
represent a material uncertainty as to the Group's ability to
continue as a going concern. Should the Group be unable to obtain
further finance such that the going concern basis of preparation
were no longer appropriate, adjustments would be required including
to reduce balance sheet values of assets to their recoverable
amounts, to provide for further liabilities that might arise.
2. Revenue
In March 2018, the Group granted an option for a license
agreement on its NBTI programme to Deinove, a French drug discovery
company.
Unaudited Unaudited Audited
Half year Half year Year to 30
to 31 March to 31 March September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Revenue - 129 129
============== ============= ============
3. Recovery of derecognised asset
At 30 September 2017, the Group derecognised as an asset a loan
due from Redag Crop Protection Ltd "Redag", on the grounds of the
conditionality attached to repayment. The loan was in the sum of
GBP715k and accrued interest at 5% per annum. In February 2019, a
sale of assets by Redag triggered the conditions necessary for the
repayment of the loan, and an amount of GBP869k was recovered,
representing the full amount of the original loan and all interest
due up to the date of repayment.
4. Administration
On 24 May 2017, two companies within the Group, Redx Pharma plc
and Redx Oncology Limited were placed into Administration as a
result of the default on repaying a loan from Liverpool City
Council. FRP Advisory LLP were appointed as Administrators. The
companies exited Administration on 2 November 2017, when control
was returned to the Directors. The costs directly associated with
the Administration, principally Administrators' costs, legal costs
and taxation costs, have been separately disclosed on the face of
the Consolidated Statement of Comprehensive income.
Unaudited Unaudited Audited
Half year Half year Year to 30
to 31 March to 31 March September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Costs of Administration - 177 177
============== ============= ============
5. Reorganisation costs
The non-recurring costs relating to directors, incurred in the
restructuring of the Board post Administration were GBP215k.
Unaudited Unaudited Audited
Half year Half year Year to 30
to 31 March to 31 March September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Reorganisation costs - 215 215
============== ============= ============
6. Release of accrued accommodation expenses
Unaudited Unaudited Audited
Half year Half year Year to 30
to 31 March to 31 March September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Release of accrual - - 548
============== ============== ============
As a result of a positive outcome from negotiations regarding
legacy accommodation costs, an accrual for potential expenses of
GBP548k was no longer required, and was released at 30 September
2018.
7. Share-based compensation
Share options have been issued to James Mead (CFO) during
the period, as well as to Alderley Park Ltd in relation
to lease surrenders, and the charge arising is shown below.
The fair value of the options granted has been calculated
using a Black--Scholes model.
Unaudited Unaudited Audited
Half Year Half Year Year to
to 31 March to 31 March 30 September
2019 2018 2018
Number Number Number
Outstanding at the beginning
of the period 10,149,563 2,963,417 2,963,417
Options granted and vested in
period 650,000 3,760,000 7,360,000
Options exercised in period - - -
Options Forfeited in period (1,630,600) (113,854) (173,854)
Options granted and vesting
in future periods 1,300,000 - -
------------- ------------- --------------
10,468,963 6,609,563 10,149,563
============= ============= ==============
GBP000 GBP000 GBP000
(Credit)/charge to Statement
of Comprehensive Income in period (19) 162 282
============= ============= ==============
Assumptions used were an option life of 5 years, a risk
free rate of 2% and no dividend yield. Other inputs were:
* Volatility 40%
* Share price at date of grant in a range between 7.25p
and 85p
* Exercise price in a range between 13.75p and 85p
* Weighted average fair value of each option in a range
between 0.1p and 47.2p
8. Finance expense and finance income
Unaudited Unaudited Audited
Half Year Half Year Year to 30
to 31 March to 31 March September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Finance expense
Other interest and similar
charges - - 1
Unwind of discount on onerous 36 - -
lease provision
36 - 1
============= ============= ===========
Finance income
Bank and other short-term deposits 5 16 24
5 16 24
============= ============= ===========
9. Income tax
Unaudited Unaudited Audited
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Current income tax
Corporation tax (560) 27 50
Amounts in respect of prior
periods (1,202) (368) (1,351)
---------- ---------- --------------
Income tax (credit) / charge
per the income statement (1,762) (341) (1,301)
========== ========== ==============
10. Loss per Share
Basic loss per share is calculated by dividing the net income
for the period attributable to ordinary equity holders by
the weighted average number of ordinary shares outstanding
during the period.
In the case of diluted amounts, the denominator also includes
ordinary shares that would be issued if any dilutive potential
ordinary shares were issued following exercise of share options.
The basic and diluted calculations are based on the following:
Unaudited Unaudited Audited
Half Year Half Year Year to
to 31 March to 31 March 30 September
2019 2018 2018
GBP000 GBP000 GBP000
Loss for the period attributable
to the owners of the Company (2,321) (4,603) (8,845)
Number Number Number
Weighted average number of
shares
- basic & diluted 126,447,914 126,447,914 126,447,914
============= ============= ==============
Pence Pence Pence
Loss per share - basic & diluted (1.8) (3.6) (7.0)
============= ============= ==============
The loss and the weighted average number of shares used for
calculating the diluted loss per share are identical to those
for the basic loss per share. This is because the outstanding
share options would have the effect of reducing the loss
per share and would therefore not be dilutive under IAS 33
Earnings per Share.
11. Onerous lease provision
Unaudited Unaudited Audited
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
Brought Forward 752 - -
(Released)/recognised in the
year (4) - 752
Unwinding of discount 36 - -
Amount utilised (195) - -
---------- ---------- --------------
Carried forward 589 - 752
========== ========== ==============
Current 405 - 147
Non-current 184 - 605
As at 30 September 2018, the Group no longer occupied the
premises at Block 3 Alderley Park, Macclesfield, having relocated
all its activities to Block 33. On this basis the Director's
believe the lease for Block 3 fulfils the criteria to be regarded
as onerous under International Accounting Standard 37. A provision
of GBP752k was therefore recognised at 20 September 2018.
The directors have reviewed the current level of the provision
and believe it to be sufficient.
INDEPENDENT REVIEW REPORT TO REDX PHARMA PLC
Introduction
We have been engaged by the Company to review the consolidated
interim financial statements in the interim financial report for
the six months ended 31 March 2019 which comprises the Consolidated
Statement of Comprehensive Income, the Consolidated Statement of
Financial Position, the Consolidated Statement of Changes in
Equity, the Consolidated Statement of Cash Flows and the related
explanatory Notes. We have read the other information contained in
the interim financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the consolidated interim set of financial
statements.
Directors' Responsibilities
The interim financial report is the responsibility of, and has
been approved by, the directors. The directors are responsible for
preparing and presenting the interim financial report in accordance
with the AIM Rules of the London Stock Exchange.
As disclosed in note 1.02, the annual financial statements of
the Group are prepared in accordance with International Financial
Reporting Standards and International Financial Reporting
Interpretations Committee pronouncements as adopted by the European
Union. The consolidated interim financial statements included in
this interim financial report have been prepared in accordance with
the presentation, recognition and measurement criteria of
International Financial Reporting Standards and International
Financial Reporting Interpretations Committee pronouncements, as
adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the consolidated interim financial statements in the interim
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the consolidated interim financial
statements in the interim financial report for the six months ended
31 March 2019 are not prepared, in all material respects, in
accordance with the presentation, recognition and measurement
criteria of International Financial Reporting Standards and
International Financial Reporting Interpretations Committee
pronouncements as adopted by the European Union, and the AIM Rules
of the London Stock Exchange.
Material uncertainty in relation to going concern
We draw attention to note 1.05 in the financial statements,
which indicates that additional funding is required in order to
continue to support the current level of activities beyond the
fourth quarter of 2019. As stated in note 1.05, these events or
conditions, along with the other matters as set forth in note 1.05,
indicate that a material uncertainty exists that may cast
significant doubt on the Company's ability to continue as a going
concern. Our conclusion is not modified in respect of this
matter.
Use of our report
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"'Review of Interim Financial Information performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our review work has been undertaken so that we might state
to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
RSM UK Audit LLP
Chartered Accountants
9th Floor,
3 Hardman Street,
Manchester,
M3 3HF
8 June 2019
FURTHER INFORMATION FOR SHAREHOLDERS
AIM: REDX
Company number: 07368089
Investor website: http://redxpharma.com/investors
Registered office: Block 33, Mereside, Alderley Park, Macclesfield,
SK10 4TG
Directors: Iain Ross (Chairman)
Lisa Anson (CEO)
James Mead (CFO)
Peter Presland (Non-Executive Director)
Bernhard Kirschbaum (Non-Executive Director)
Company Secretary: Andrew Booth
END
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END
IR FKLLBKQFZBBD
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