Interim Results

    RNS Number : 7067D
  CapRegen PLC
  18 September 2008
   


    18 September 2008
    CapRegen plc

    Interim Results for the Period Ended 30 June 2008

    CapRegen plc ("CapRegen" or "the Group"), the AIM listed anti-ageing and regenerative medicine investment company, is pleased to
announce its interim results for 2008.

    Highlights

    *     First investment in CapRegen Magnum is progressing ahead of plan
    *     Two new investments announced today
    *     Further strengthening of the Board with two new appointments
    *     Period end net cash of £3.6 million, being 4.0p per share

    Douglas Emslie, Chairman of CapRegen, commented:

    "The first six months of the year has been very positive for the Group. Trading at CapRegen Magnum has been ahead of our expectations
and expansion plans to further grow this investment are well advanced. We have today announced two new investments and a further
strengthening of the Board to support the Group's growth. Your Board is confident that its first full year of operation will be one of very
good progress."


    FOR FURTHER INFORMATION, PLEASE CONTACT: 

    CapRegen plc:
    Douglas Emslie, Chairman            020 8846 2700

    Nominated Adviser: 
    Blue Oar Securities Plc
    William Vandyk                               020 7448 4400


    CHAIRMAN'S STATEMENT

    Introduction

    The first six months of the year has been very positive for the Group. Our first investment, CapRegen Magnum, has performed ahead of
expectations and expansion plans to further grow this investment are well advanced.

    Results

    The Group generated revenues of £141,080 in the period and made a profit before tax of £122,532. The profit before tax, warrant charges
and amortisation charge was £155,212. Net assets as at 30 June 2008 were £3,648,846 of which £3,611,679 was cash which is 4.0p per share. 
Your directors do not intend to recommend the payment of a dividend at this time.

    First Investment - CapRegen Magnum

    CapRegen Magnum has invested in medical device marketing initiatives in the aesthetics and sports medicine industries through a
marketing agreement with a US based company Arasys Perfector Inc. ("Arasys").

    The devices sold by Arasys are used for aesthetic purposes, in particular skin rejuvenation and also to help build muscle and improve
muscle tone as part of an overall health and fitness programme. They are manufactured in the UK and Arasys has the worldwide sales and
marketing rights to them in the anti-ageing, aesthetic, spa, medical spa, medical clinic, hospital and preventative medicine markets.

    In the period the Group received £141,080 of royalties from Arasys. Arasys is continuing to develop new products which are expected to
benefit the Group in the second half of the year. In addition, as a result of marketing initiatives through CapRegen, Arasys has expanded
its sales activities into Asia.

    Board

    George Greenwood was appointed to the Board as a non-executive director on 9 June 2008. George Greenwood has a strong background in the
financial services and investment arena, having originally qualified as a lawyer. He has spent much of his career at Steamship Mutual, a
Bermuda based international marine insurance mutual, where he was Chief Executive from 1986 until 2003. At Steamship Mutual he was
responsible for over $400 million of assets under management and a world-wide client base. Currently he is Vice-President of the Institute
of Chartered Shipbrokers, a non-executive director of Lloyd's broker J.B. Boda & Co. (UK) Ltd. and on the investment committees of several
not-for-profit organisations.

    Today, we are also pleased to announce that David Michael Steel, 48, has joined the Board as Finance Director. David has over 20 years
of financial experience, having qualified as a Chartered Accountant in 1986 with KPMG. He is currently Group Financial Controller of Tarsus
Group plc.

    In the previous five years David Steel has been a director of the following companies and remains a director: 

    CapRegen Natural Biosciences Ltd.
    CapRegen Nutraceuticals Ltd.
    CapRegen Biosciences Ltd.

    There is no further information required to be disclosed under paragraph (g) of Schedule 2 of the AIM Rules.

    Outlook

    Sales of Arasys have started well in the second half with additional products being added to the portfolio and the expansion into Asia.

    Your Board has announced two new investments today. The first is the formation of a new, US based company, CapRegen Nutraceuticals Inc.
("CNI"), which will initially be owned 96% by CapRegen and 4% by CNI staff and licensees. If agreed financial targets are achieved over the
first two years of operation the CNI staff and licensees' shareholding can increase to 12%. CNI will sell and market nutraceutical products
acquired under license from third parties to anti-ageing doctors. CNI has entered into two third party licenses today. CapRegen will provide
CNI with a working capital facility of up to $250,000. 

    The second investment is the acquisition of 50% of Natural Biosciences Inc ("NBI") a U.S. company, for $250,000. NBI will initially
market three medicinal mushroom products that assist the body's immune system in its fight against illness and disease. They also have
anti-oxidant and anti-inflammatory potential. In addition, NBI plans to develop diagnostic products for the early detection of oxidation
stress. NBI is also in the process of negotiating a license for a compound that may be able to carry a potent antioxidant back and forth
across cell barriers.

    NBI is a newly established company and was set up by Dr Marvin Hausman, an accomplished immunologist, surgeon and life sciences
executive. Dr Hausman will be the CEO of NBI and will use the sales and marketing services of CNI, our second investment, to sell and market
the three medicinal mushroom products to anti-ageing doctors and medical professionals.

    Dr Hausman has a long and successful track record of working in the public company arena. He was until recently Chairman and CEO of Oxis
International Inc., a US public company, which specialises in research and development of technologies and therapeutic products in the field
of oxidative stress and inflammatory reaction. He was also chairman of Axonyx, a NASDAQ company involved in the development of drugs
relating to Alzheimer's Disease and other central nervous system indications, until 2006 when it merged with Torry Pines Therapeutics. Prior
to founding Axonyx, Dr. Hausman was a co-founder of Medco Research Inc., a pharmaceutical biotechnology company specializing in adenosine
products which was subsequently acquired by King Pharmaceuticals.

    Your Board is confident that its first full year of operation will be one of very good progress.


    Douglas Emslie
    Chairman
    18 September 2008


    CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

                                 Notes  Six month to 30 June          Period to 31
                                                        2008         December 2007
                                                           £                     £
                                        (unaudited)           (audited)

 Group revenue                   7      141,080               -

 Operating costs                        (114,747)             (81,822)

 Group operating profit                 26,333                (81,822)

 Interest receivable                    96,199                75,418

 Profit before taxation                 122,532               (6,404)

 Taxation expense                8      (27,600)              (46,289)

 Profit for the financial               94,932                (52,693)
 period 

 Profit/(loss) for the                  83,356                            (48,971)
 financial period attributable
 to equity shareholders of the
 parent company
 Profit/(loss) for the                  11,576                (3,722)
 financial period attributable
 to minority interests
                                        94,932                (52,693)


                             Notes  Six month to 30 June  Period to 31 December 2007
                                                    2008
 Earnings per share (pence)      9
 - basic                            0.1                   -
 - diluted                          0.1                   -


    CONDENSED CONSOLIDATED INTERIM STATEMENT OF RECOGNISED INCOME AND EXPENSE

                                 Six month to 30 June 2008  Period to 31 December 2007


                                                         £                           £
                                 (unaudited)                (audited)

 Profit for the financial        94,932                     (52,693)
 period

 Total recognised income and     94,932                     (52,693)
 expense for the period

 Attributable to:
 Equity holders of the parent    83,356                                       (48,971)
 company
 Minority interest               11,576                     (3,722)

 Total recognised income and     94,932                     (52,693)
 expense for the period


    CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

                              Notes  30 June      31 December
                                     2008         2007
                                     £            £
                                     (unaudited)  (audited)
 NON-CURRENT ASSETS
 Intangible assets             10    206,853      150,182
 Deferred tax asset                  17,457       -
                                     224,310      150,182

 CURRENT ASSETS
 Trade and other receivables         24,477       46,985
 Cash and cash equivalents           3,611,679    3,574,588
                                     3,636,156    3,621,573

 TOTAL ASSETS                        3,860,466    3,771,755

 CURRENT LIABILITIES
 Trade and other payables            (211,620)    (217,560)

 NON-CURRENT LIABILITIES
 Deferred tax liability              -            (26,368)

 TOTAL LIABILITIES                   (211,620)    (243,928)

 NET ASSETS                          3,648,846    3,527,827

 EQUITY
 Share capital                 11    890,100      890,100
 Share premium account         11    2,503,879    2,503,879
 Other reserves                11    199,442      173,355
 Retained earnings             11    34,385       (48,971)

 Equity shareholders' funds          3,627,806    3,518,363
 Minority interest             11    21,040       9,464
 TOTAL EQUITY                        3,648,846    3,527,827


    CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT

                                     Six month to 30 June  Period to 31 December 2007
                                                     2008

                                                                                    £
                                                        £
                                 (unaudited)               (audited)
 Cash flows from operating
 activities
 Profit for the period           94,932                    (52,693)
 Adjustments for:
 Warrant charge                  26,087                    29,678
 Amortisation                    6,593                     420
 Tax charge                      27,600                                        46,289
 Net interest                    (96,199)                                    (75,418)
 Operating cashflow before       59,013                                      (51,724)
 changes in working capital 

 Change in trade and other       5,051                     (46,985)
 receivables
 Change in current trade and     (54,974)                  197,246
 other payables

 Cash generated from operations  9,090                     98,537

 Interest received               91,265                    75,418
 Net cash from operating         100,355                   173,955
 activities

 Cash flows from investing
 activities
 Acquisition of subsidiaries     -                         (18,346)
 Acquisition of intangible       (63,264)                  -
 fixed assets
 Net cash from investing         (63,264)                  (18346)
 activities

 Cash flows from financing
 activities
 Issue of shares:    Initial     -                         500,000
 subscription
                                 -                         3,200,500
 Flotation
 Cost of share issue             -                         (281,521)
 Net cash outflow from           -                         3,418,979
 financing activities

 Net increase in cash and cash   37,091                    3,574,588
 equivalents
 Opening cash and cash           3,574,588                 -
 equivalents
 Closing cash and cash           3,611,679                 3,574,588
 equivalents

    NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

    1. REPORTING ENTITY

    CapRegen plc (the "Company") is a company domiciled in the United Kingdom. The condensed consolidated interim financial statements of
the Company as at and for the six months ended 30 June 2008 comprise the Company and its subsidiaries (together referred to as the
"Group").

    The consolidated financial statements of the Group as at and for the period ended 31 December 2007 are available upon request from the
Company's registered office at Metro Building, 1 Butterwick, London W6 8DL.

    2. STATEMENT OF COMPLIANCE

    These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) IAS 34 Interim Financial Reporting.  They do not include all of the information required for full annual financial
statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the period ended 31
December 2007 which were prepared under International Financial Reporting Standards and have been reported on by the Company's auditors and
delivered to the Registrar of Companies. The auditors' report was unqualified and did not contain a statement under section 237 (2) or (3)
of the Companies Act 1985.

    The interim financial information was approved by a duly appointed and authorised committee of the Board of Directors on 18 September
2008. The interim financial information is unaudited. 
    

    3. SIGNIFICANT ACCOUNTING POLICIES

    The accounting policies applied by the Group in these condensed consolidated financial statements are the same as those applied by the
Group in its consolidated financial statements as at and for the period ended 31 December 2007.
    

    4. ESTIMATES
    

    The preparation of consolidated interim financial statements requires management to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may
differ from these estimates.

    In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial
statements as at and for the period ended 31 December 2007.

    5. FINANCIAL RISK MANAGEMENT

    The Group's financial risk management objectives and policies are consistent with that disclosed in the consolidated financial
statements as at and for the period ended 31 December 2007.

    6. PROFIT AND LOSS ANALYSIS

    The following analysis illustrates the performance of the Group's activities, and reconciles the Group's profit, as shown in the interim
income statement, to adjusted profits. Adjusted profit is presented to provide a better indication of overall financial performance and to
reflect how the business is managed and measured on a day-to-day basis. The adjusted profit excludes share warrant charges and amortisation
of intangible assets.

                                                 Six months  Period to
                                                 to 30 June         31
                                                       2008   December
                                                          £       2007
                                                                     £
 Profit for the financial period after taxation      94,932   (52,693)
 Add back:
 Taxation charge                                     27,600     46,289
                                                    122,532    (6,404)
 Add back:
 Warrant charge                                      26,087     29,678
 Amortisation charge                                  6,593        420

 Adjusted profit before tax                         155,212     23,694

    7. SEGMENTAL ANALYSIS

    The Group only operates in the area of investing in early-concept anti-ageing technologies.

    8. INCOME TAX EXPENSE

    The taxation charge for the six months ended 30 June 2008 is based on the estimated effective tax rate of 23%.

    9. EARNINGS PER SHARE

                             Six months  Period to
                             to 30 June         31
                                   2008   December
                                  pence       2007
                                             pence
 Basic earnings per share           0.1          -
 Diluted earnings per share         0.1          -

    Basic earnings per share
    The basic earnings per share has been calculated on the profit after tax attributable to ordinary shareholders for the six months of
£83,356 (December 2007: loss of £48,971) and 89,010,000 (December 2007: 70,287,871) ordinary shares being the weighted average number of
shares in issue during the period. 

    Diluted earnings per share
    The diluted earnings per share has been calculated on the loss after tax attributable to ordinary shareholders for the six months of
£83,356 (December 2007: loss of £48,971) and 89,010,000 (December 2007: 70,287,871) ordinary shares being the diluted weighted average
number of shares in issue during the period.

    Weighted average number of ordinary shares (diluted):
                                                      Six months  Period to 31
                                                      to 30 June      December
                                                            2008          2007
 Weighted average number of ordinary shares           89,010,000    70,287,871
 Effect of share options                                       -             -
 Weighted average number of ordinary shares           89,010,000    70,287,871
 (diluted)

    Actual shares in issue at 4 September 2008: 89,010,000

    10. INTANGIBLE FIXED ASSETS

                       Goodwill  Marketing rights    Total
                                                £

                              £                          £
 Cost:
 At 1 January 2008     18,739    131,863           150,602
 Additions             12,500    50,764            63,264
 At 30 June 2008       31,239    182,627           213,866

 Amortisation:
 At 1 January 2008     -         (420)             (420)
 Amortisation charge   -         (6,593)           (6,593)
 At 30 June 2008       -         (7,013)           (7,013)

 Net book values:
 At 31 December 2007   18,739    131,443           150,182

 At 30 June 2008       31,239    175,614           206,853

                            11. RECONCILIATION OF MOVEMENTS IN EQUITY                

                                   Share      Share            Retained             Minority      Total
                                                        Other                  Sub
                                 capital    premium  reserves  earnings      Total  interest
                                            account
                                       £          £         £         £          £         £          £
 As at 30 June 2008:
 Profit for the period                 -          -         -    83,356     83,356    11,576     94,932
 Movement relating to warrants         -          -    26,087         -     26,087         -     26,087
 Net change in shareholders'           -          -    26,087    83,356    109,443    11,576    121,019
 funds
 Opening equity shareholders'    890,100  2,503,879            (48,971)                9,464  3,527,827
 funds                                                173,355            3,518,363
 Closing equity shareholders'    890,100  2,503,879              34,385               21,040  3,648,846
 funds                                                199,442            3,627,806

    12. RELATED PARTIES

    Directors of the company control 21.8% (31 December 2007: 21.8%) of the voting shares of the company.

    At 30 June 2008, there were balances owing to and from various Tarsus Group companies, relating to funding of various transactions. All
balances were settled by 18 September 2008.

    At 30 June 2008, Tarsus Group plc held 17.4% of the voting shares of the company.

    Montana Street Consultants Inc. has an office sublease with MCII, a Tarsus Group company. No rent was charged for the period to 30 June
2008.
    
13. POST BALANCE SHEET EVENT

    On 18 September 2008, CapRegen formed a new, US based company, CapRegen Nutraceuticals Inc. (CNI), which will initially be 96% owned by
the Group and 4% by CNI staff and licensees. If agreed financial targets are achieved over the first two years of operation the CNI staff
and licensees' shareholding can increase to 12%. CNI will sell and market nutraceutical products acquired under license from third parties
to anti-ageing doctors. CNI has entered into two third party licenses today. CapRegen will provide CNI with a working capital facility of up
to $250,000. 

    Also on 18 September 2008, CapRegen acquired 50% of Natural Biosciences Inc (NBI) a U.S. company, for $250,000. NBI will initially
market three medicinal mushroom products that assist the body's immune system in its fight against illness and disease. They also have
anti-oxidant and anti-inflammatory potential. In addition, NBI plans to develop diagnostic products for the early detection of oxidation
stress. NBI is also in the process of negotiating a license for a compound that may be able to carry a potent antioxidant back and forth
across cell barriers.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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