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EDEN Eden Research Plc

4.55
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Eden Research Plc LSE:EDEN London Ordinary Share GB0001646941 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 4.55 4.30 4.80 4.55 4.55 4.55 496,424 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Biological Pds,ex Diagnstics 1.83M -2.24M -0.0042 -10.83 24.27M

Eden Research plc Half-year Report - Replacement (2536S)

29/09/2017 11:15am

UK Regulatory


Eden Research (LSE:EDEN)
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TIDMEDEN

RNS Number : 2536S

Eden Research plc

29 September 2017

The following amendment has been made to the 'Half-year Report' announcement released on 29 September 2017 at 7:00 am under RNS No 1717S.

The sterling figure in the first bullet of the Business highlights section of the RNS should have read GBP0.5m instead of GBP0.7m.

All other details remain unchanged.

The full amended text is shown below.

29 September 2017

Eden Research plc

("Eden" or "the Company")

Half Yearly Report

Eden Research plc (AIM: EDEN), the AIM-listed company that provides breakthrough biocontrol products and natural microencapsulation technologies to the global agrochemicals, animal health and consumer products industries, announces its interim results for the six months ended 30 June 2017.

Financial highlights

   --   Revenue for the period increased to GBP1.03m (H1 2016: GBP0.11m) 
   --   Operating Profit for the period increased to GBP0.21m (H1 2016: loss of GBP0.86m) 
   --   Cash and cash equivalents of GBP3.66m (H1 2016: GBP2.01m) 

-- Strategic investment of GBP2.2m by Sipcam and placing of GBP0.2m (gross) to institutional investors

-- Expanding investment in regulatory clearances unlocking commercial potential in new, important territories

Business highlights

Commercial, Regulatory and IP:

-- Multiple commercial agreements signed with Sipcam SpA (Sipcam) including an Evaluation and Option Agreement for which a fee of EUR0.6m (GBP0.5m) was paid to Eden, establishing a long term collaborative partnership

-- EU approval of Eden's first agrochemical, fungicide product, 3AEY, gained in France and first commercial sales achieved

   --     Further EU approvals received in Cyprus, Albania and Portugal (post period end) 
   --     Label extensions received in Kenya now include authorisation for the treatment of roses 

-- Extension of 3AEY patent protection in Spain, Greece and Cyprus and nematicide patent granted in US

-- New terms agreed with University of Massachusetts Medical School ("UMMS") for licence to next-generation technology

Operational highlights:

-- Lykele van der Broek, former COO of Bayer Crop Science and former Head of the Animal Health division of Bayer Health Care, to be appointed as a Non-Executive Director and Chairman Designate of the Company from 1 October 2017 and Chairman with effect from 1 January 2018

   --   Tom Lupton to retire as Chairman and Non-Executive Director on 31 December 2017 

Tom Lupton, Chairman, commented:

"Eden has achieved a successful first half performance. A significant volume of our first plant protection fungicide, 3AEY, has already been sold by our partners in France, Greece and Kenya with on-going sales in Italy and Spain in the second half of the year. While it is too early to predict the impact of climate and overall conditions on sales, we are pleased to say that interest in 3AEY has been steadily growing, and we expect this to translate into increasing market share as time, regulatory approvals and growing conditions permit.

During the period, we successfully concluded a series of commercial agreements with one of our existing partners, Sipcam SpA, who paid us a fee of EUR0.6m for certain rights to Eden's agrochemical products in a number of important territories. Additionally, Sipcam made a strategic investment in Eden subscribing to GBP2.2m in new shares and consequently has become a significant shareholder with a 9.9% stake in the Company.

On 21 December 2016, we announced an exclusive distribution agreement with Eastman Chemical for our nematicide product to be marketed by Eastman as Cedrozä in nearly thirty countries across the world. Progress during the first half of 2017 has been made in registering Cedroz in a number of territories and we look forward to working closely with Eastman to maximise the potential for Cedroz from first commercial launch.

We are now beginning to see the result of our investments in commercial relationships, intellectual property, technology and regulatory approvals. These investments, along with our evolving business model will continue to fuel growth. Whilst we will continue to leverage our assets into new regulatory approvals and territories and growing sales, we are increasingly focused on developing our capabilities to support future growth.

Having been with Eden since 2012, I have watched its evolution from early stage development to commercial stage, with great prospects and the right team in place to fully exploit the technologies and products and that have been developed over the years. I believe that the time is now right for me to retire and am pleased that I am passing the role of Chairman to Lykele van der Broek, who has the necessary experience to support the executive team and lead the Board through this new and exciting stage that the Company has reached.

I would like to thank my colleagues and our shareholders for their support during my time at Eden and wish the team at Eden all the best for the future. I will continue to watch with a keen interest as the business continues to grow and flourish in the coming years."

A presentation for analysts will be held at 9.00am this morning at Powerscourt's offices, 1 Tudor Street, EC4Y 0AH.

Enquiries:

 
Eden Research plc                  www.edenresearch.com 
Sean Smith, Chief Executive          Tel: 01285 359 555 
 Officer 
Alex Abrey, Chief Financial 
 Officer 
 
Shore Capital and Corporate            www.shorecap.com 
 Limited 
Stephane Auton/Patrick               Tel: 020 7408 4090 
 Castle 
 
Powerscourt                  eden@powerscourt-group.com 
Samantha Trillwood                   Tel: 020 7250 1446 
Nick Dibden 
 

Chief Executive statement

Results

The business has performed well during the first half of the year. Sales of our first plant protection product, 3AEY, have been pleasing with repeat orders from multiple partners, and with robust sales in France despite a slightly slower start than hoped due to the authorization of the product coming late in the commercialisation "window" for the current year. Although 2017 has been a challenging year for crop protection products due to unusual growing conditions (i.e. hard frosts in April followed by high heat and drought in the summer, resulting in the smallest harvests in 60 years) in key markets such as France and Italy, 3AEY should achieve a reasonable and growing market share based upon early assessments. Indeed, grower feedback has also been positive with growers placing 3AEY performance on par with conventional fungicides. This is, in fact, the standard we aim to achieve.

Total revenue from operations in the period to 30 June 2017 was GBP1.03m, significantly ahead of last year at GBP0.11m, partly driven by commercial sales of 3AEY in key grape growing countries and partly by the upfront payment from the Evaluation and Option Agreement entered into with Sipcam in June.

Strategic investment by Sipcam

A highlight for the Company during the period was the execution of a series of agreements with Sipcam SpA covering product distribution, product evaluations, and options for exclusivity in a range of economically important countries. Sipcam is a strong partner with a global footprint and a well-established position, especially in many of our high-value fruit and vegetable market targets, such as vines. Sipcam is also well-recognised in the industry for its excellent formulation and production capabilities.

Whilst we clearly recognise the potential for Sipcam to help grow Eden's global presence and accelerate product commercialisation across a range of existing and new products, Sipcam has in turn recognised the real potential in Eden's products, team and technology. Consequently, they have made a strategic investment in Eden taking a 9.9% stake in the Company through the purchase of GBP2.2 million of new shares. At the same time, the Company also successfully raised c.GBP200k through an institutional placing and announced that it had received a non-binding indication from an existing institutional investor for GBP300,000 of new shares (the "Additional VCT Placing"). Further to the Company's announcement on 30 June 2017, the Company is pursuing the relevant clearance from HMRC that the Company's business will qualify for the relevant tax reliefs in connection with the Additional VCT Placing and will make a further announcement as appropriate.

We look forward to working with Sipcam both on the short-term commercialisation of 3AEY in key vine markets globally, but also in our long-term collaboration focussed on leveraging our respective technical and commercial capabilities for the benefit of both companies, our shareholders, and growers around the world.

Commercial progress

Investment in regulatory clearances unlocks commercial potential in new, important crop targets and territories. During the period, Eden's product, 3AEY has received regulatory clearance in France with the recently-announced approval in Portugal coming after the period end. Furthermore, 3AEY has also received approval in Cyprus and Albania, and minor use and emergency authorisations have also been granted on new crop targets such as aubergine, kiwi and pomegranate. We are working hard to continue this expansion into new territories including key markets such as the United States and various South American countries.

On 21 December 2016, we announced a major distribution agreement with Eastman Chemical's subsidiary, Taminco, for Eden's nematicide product which will be marketed as Cedrozä. Since that time, we have been actively collaborating with Eastman which is busy with the management of field trials and the generation of data supporting product registrations in nearly 30 countries around the world. Registration and commercialisation timing is on track, and we continue to anticipate product sales in 2019, as previously announced. To date, product feedback is positive, and both parties continue to look for opportunities to broaden the segment of the global nematicide business that can be addressed by Cedrozä.

We have previously announced a number of licence agreements and a share-based transaction leading to the acquisition of 29.9% of TerpeneTech Limited. Subsequently, TerpeneTech Limited has been focussed upon the further development, registration, and launch of its head-lice treatment product in the United States and Europe. In parallel, they have been in conversation with several potential channel distribution partners, and we expect that the outcome of these discussions will be announced in the coming months. We currently expect TerpeneTech to announce the launch of its head-lice treatment product in early 2018, subject to timely regulatory submissions and the subsequent authorisations, which are on-going.

This year, we have increased our focus on our intellectual property ("IP") portfolio, including both patents and trademarks. In conjunction with this, we have appointed new patent agents and advisors to manage the overall portfolio and to work with us and with our partner, Xinova (formerly Intellectual Ventures), to devise various IP-related strategies. It is also pleasing to note that the prosecution of Eden's patent applications globally continues to proceed with Eden receiving new granted patents in Australia, the United States, and Japan. Furthermore, we have been granted "supplementary protection certificates" (SPCs) in a number of countries further extending our 3AEY patent protection in territories in which we have authorisation to sell by approximately six years. We will continue to use SPC's to provide additional patent protection for our products.

We continue to engage in active portfolio management. This means that we routinely review our portfolio to assess its fit with our longer-term business objectives, and we actively manage our patents in alignment with these objectives. As a part of this process, we have also agreed new terms with UMMS covering our licence to certain University-owned encapsulation technologies resulting in a net reduction in Eden's short-term financial obligations to UMMS. In Eden's 2016 Report and Accounts, it was noted that an amount of GBP570,000, (USD$700,000) had been accrued to UMMS for minimum royalties payable under the licence agreement which Eden signed with UMMS in 2011. The amount accrued has now been written off, and Eden has agreed to pay a fee of USD$250,000. A portion of this fee was due upon signature of the Amendment, and the balance is payable in one year's time from signature.

Dividend

There was no dividend paid or proposed for the six month period. The Board continues to monitor its dividend policy.

Outlook

Based on these interim results, and the significant commercial and regulatory progress made over the last six months, current trading is in line with the Board's expectations for the full year.

We are focussed on execution under our recent agreements with Sipcam and Eastman Chemical, as these partnerships provide us with the resources and capabilities to achieve strong future growth. We are also increasing our focus on the development of our internal capabilities, thereby ensuring appropriate resources and assets for future continued growth. I look forward to working with the Board, our team and our partners to fully realise our ambitions.

 
 Eden Research plc 
  Statement of Comprehensive Income for the six months 
  ended 30 June 2017 
                                            Six          Six 
                                         months       months           Year 
                                          ended        ended          ended 
                                        30 June      30 June    31 December 
                                           2017         2016           2016 
                                        GBP'000      GBP'000        GBP'000 
                                      unaudited    unaudited        audited 
                                                   re-stated 
 Revenue                                  1,026          109            392 
                                    -----------  -----------  ------------- 
 Cost of sales                            (312)         (11)           (29) 
                                    -----------  -----------  ------------- 
 Gross profit                               714           98            363 
                                    -----------  -----------  ------------- 
 Administrative expenses                  (692)        (550)        (1,439) 
 Exceptional royalties 
  refund (note 9)                           570            -              - 
 Amortisation of intangible 
  assets                                  (387)        (337)          (680) 
 Share based payments 
  (note 8)                                    -         (73)          (130) 
                                    -----------  -----------  ------------- 
 Total other operating 
  expenses                                (509)        (960)        (2,249) 
 Operating profit/(loss)                    205        (862)        (1,886) 
 Finance income/(costs) 
  Share of loss of equity                     2            2           (15) 
  accounted investee, net 
  of tax                                    (3)          (2)           (12) 
                                    -----------  -----------  ------------- 
 Profit/(loss) on ordinary 
  activities before taxation                204        (862)        (1,913) 
 Tax on profit/(loss) 
  on ordinary activities                      -           82             82 
                                    -----------  -----------  ------------- 
 Profit/loss for the financial 
  period                                    204        (780)        (1,831) 
 Other Comprehensive Income: 
  Items that will not be 
  reclassified subsequently 
  to profit or loss                           -            -              - 
 Items that will be reclassified 
  subsequently to profit 
  or loss                                     -            -              - 
                                    -----------  -----------  ------------- 
 Other Comprehensive Income 
  net of tax                                  -            -              - 
 Total Comprehensive Income 
  since last Report                         204        (780)        (1,831) 
 
 
 Profit/(loss) per share 
  (pence) - basic and diluted 
  (note 4)                                 0.11       (0.44)         (1.03) 
 

Eden Research plc

Consolidated Statement of Financial Position as at 30 June 2017

 
                                    30 June      30 June     31 Dec 
                                       2017         2016       2016 
                                    GBP'000      GBP'000    GBP'000 
                                               Unaudited 
                                  Unaudited    re-stated    Audited 
 ASSETS 
 NON-CURRENT ASSETS 
 Intangible assets (note 
  6)                                  5,043        5,290      5,212 
 Investments in equity 
  accounted investee 
  (note 7)                              808          822        811 
 
 
                                      5,851        6,112      6,023 
 CURRENT ASSETS 
 Trade and other receivables            998          238        241 
 Cash and cash equivalents            3,663        2,007      1,532 
 
 
                                      4,661        2,245      1,773 
 
 
 TOTAL ASSETS                        10,512        8,357      7,796 
 
 LIABILITIES 
 CURRENT LIABILITIES 
 Trade and other payables             1,114          598        965 
 
 
 TOTAL CURRENT LIABILITIES            1,114          598        965 
 
 
 NON-CURRENT LIABILITIES 
  Trade and other payables               67            -         67 
 
 
 TOTAL NON-CURRENT LIABILITIES           67            -         67 
 
 
 TOTAL LIABILITIES                    1,181          598      1,032 
 
 EQUITY 
 Called up share capital              2,085        1,846      1,846 
 Share premium account               31,264       29,140     29,140 
 Merger reserve                      10,210       10,210     10,210 
 Warrant reserve                        615          808        615 
 Retained earnings                 (34,843)     (34,245)   (35,047) 
 
 TOTAL EQUITY attributable 
 to owners of the parent              9,331        7,759      6,764 
 
 
 TOTAL EQUITY AND LIABILITIES        10,512        8,357      7,796 
 
 

Eden Research plc

Statement of Changes in Equity as at 30 June 2017

 
                                    Share      Share     Merger    Warrant    Retained     Total 
                                  capital    premium    reserve    reserve    earnings 
                                  GBP'000    GBP'000    GBP'000    GBP'000     GBP'000   GBP'000 
 Six months ended 
  30 June 2017 
 
 Balance at 1 January 
  2017 (audited)                    1,846     29,140     10,210        615    (35,047)     6,764 
 
 Profit and total 
  comprehensive income                  -          -          -          -         204       204 
 
   Transactions with 
   owners 
 - Share issue                        239      2,124          -          -           -     2,363 
  - Options granted                     -          -          -          -           -         - 
 - Options exercised/lapsed             -          -          -          -           -         - 
                                ---------  ---------  ---------  ---------  ----------  -------- 
 
 Transactions with 
  owners                              239      2,124          -          -           -     2,363 
                                ---------  ---------  ---------  ---------  ----------  -------- 
 
 Balance at 30 June 
  2017 (unaudited)                  2,085     31,264     10,210        615    (34,843)     9,331 
                                ---------  ---------  ---------  ---------  ----------  -------- 
 
 
 Six months ended 
  30 June 2016 
 
 Balance at 1 January 
  2016 as restated 
  (audited)                         1,587     26,861     10,210        735    (33,465)     5,928 
 
 Loss and total comprehensive 
  income                                -          -          -          -       (780)     (780) 
 
   Transactions with 
   owners 
 - Share issue                        259      2,279          -          -           -     2,538 
 - Options granted                      -          -          -         73           -        73 
 - Options exercised/lapsed             -          -          -          -           -         - 
                                ---------  ---------  ---------  ---------  ----------  -------- 
 
 Transactions with 
  owners                              259      2,279          -         73           -     2,611 
                                ---------  ---------  ---------  ---------  ----------  -------- 
 
 Balance at 30 June 
  2016 (unaudited)                  1,846     29,140     10,210        808    (34,245)     7,759 
                                ---------  ---------  ---------  ---------  ----------  -------- 
 
 
 
 

Eden Research plc

Statement of cash flows for the six months ended 30 June 2017

 
 
                                  Six months   Six months 
                                                            Year ended 
                                       ended        ended           31 
                                     30 June      30 June     December 
                                        2017         2016         2016 
                                    GBP '000     GBP '000     GBP '000 
                                   unaudited    unaudited      audited 
 
 Cash flows from operating 
  activities 
 
 Cash outflow from operations 
  (note 5)                              (16)        (598)        (983) 
 Tax credit received                       -            -           82 
 Net finance charges 
  paid                                     -            -         (16) 
                                 -----------  -----------  ----------- 
 
 Net cash used in operating 
  activities                            (16)        (598)        (917) 
 
 Cash flows from investing 
  activities 
 
 Capitalisation of development 
  expenditure                          (218)         (83)        (238) 
 Finance income                            2            2            1 
                                 -----------  -----------  ----------- 
 
 Net cash used in investing 
  activities                           (216)         (81)        (237) 
                                 -----------  -----------  ----------- 
 
 
 Cash flows from financing 
  activities 
 
 Share issue costs                      (35)        (131)        (131) 
 Issue of equity shares                2,398        2,669        2,669 
                                 -----------  -----------  ----------- 
 
 Net cash from financing 
  activities                           2,363        2,538        2,538 
                                 -----------  -----------  ----------- 
 
 Increase/(decrease) 
  in cash and cash equivalents         2,131        1,859        1,384 
 
 Cash and cash equivalents 
  at 
   beginning of period                 1,532          148          148 
                                 -----------  -----------  ----------- 
 
 Cash and cash equivalents 
  at 
   end of period                       3,663        2,007        1,532 
                                 ===========  ===========  =========== 
 
 

Cash and cash equivalents comprise bank account balances.

Notes to the Interim Results

1. The information in these financial statements does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and is un-audited. These financial statements have been prepared in accordance with the AIM rules, and IAS 34 has not been adopted. A copy of the Company's statutory accounts for the period ended 31 December 2016, prepared under International Financial Reporting Standards as adopted by the European Union, has been delivered to the Registrar of Companies and are available on the Company's website. The auditors' report on those accounts was unqualified and did not contain statements under section 498(2) or section 498(3) of the Companies Act 2006.

   2.            Nature of operations and general information 

Eden Research is a technology development and commercialisation company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions for the global agrochemicals, animal health, and consumer product industries.

Eden's encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic compounds to enhance their performance and ease-of-use. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetics and pharmaceutical industries.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

Eden is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.

   3.            Accounting Policies 

Basis of Preparation

These interim condensed consolidated financial statements are for the six months ended 30 June 2017. They have been prepared following the recognition and measurement principles of IFRS. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the financial statements of the company for the year ended 31 December 2016.

These financial statements have been prepared on the going concern basis and under the historical cost convention.

Going Concern

The financial statements have been prepared on a going concern basis which contemplates the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Company has reported a profit for the period after taxation of GBP204,000 (2016: GBP780,000 loss). Net current assets at that date amounted to GBP3,547,000 (2016: GBP1,647,000).

The directors have prepared budgets and projected cash flow forecasts, based in part on forecasts provided by Eden's commercial partners, for a period of two years from 30 June 2017 and they consider that the Company will be able to operate with the cash resources that are available to it for this period. The ability of the Company to continue as a going concern is ultimately dependent upon the amounts and timing of cash flows from the exploitation of the Company's intellectual property and the availability of additional funding to meet the short term needs of the business until the commercialisation of the Company's portfolio is reached.

The forecasts adopted only include revenue derived from existing contracts and, while there is a risk these payments might be delayed if milestones are not reached, there is also potential upside from on-going discussions and negotiations with other parties, as well as other "blue sky" opportunities.

In addition, the Company has relatively low fixed running costs and has a demonstrable ability to delay certain other costs, such as the forecast Research and Development expenditure, in the event of unforeseen cash constraints.

The directors have also considered a scenario whereby the Company receives no revenue from the date of this Report. On this basis, the directors believe that the Company has sufficient cash to cover a period of at least 12 months from the date of this Report.

The directors have been and will continue to closely monitor performance against cash flow projections that have been prepared for the period to 30 June 2019, and beyond, and are confident that the Company will be able to rely on the necessary cash resources at least at the levels referred to above.

On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a failure by the Company to meet these forecasts.

These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2016, except for the application of the following standards at 1 January 2017:

   --              IFRS 13 "Fair Value Measurements" (IFRS 13) 
   --              Annual Improvements 2009-11 (Annual Improvements) 

The accounting policies have been applied consistently for the purposes of preparation of these condensed interim financial statements.

Copies of the interim statement are available from the Company at its registered office, 6 Priory Court, Priory Court Business Park, Poulton, Cirencester, Gloucestershire, GL7 5JB, as well as on the Company's website.

   4.            Profit/(loss) per share 
 
                               Six months    Six months 
                                    ended         ended     Year ended 
                                  30 June       30 June    31 December 
                                     2017    2016 Pence           2016 
                                    Pence     unaudited          Pence 
                                unaudited                      audited 
 Profit/(loss) per ordinary 
  share (pence) - basic 
  and diluted                        0.11        (0.44)         (1.03) 
                              ===========  ============  ============= 
 

Profit/(loss) per share has been calculated on the net basis on the profit after tax of GBP204,000 (30 June 2016: loss GBP780,000, 31 December 2016: loss GBP1,831,000) using the weighted average number of ordinary shares in issue of 184,654,119 (30 June 2016: 178,432,719, 31 December 2016: 178,441,431).

Due to the average share price during the period being less than the average exercise price of the options which were outstanding at 30 June 2017, there is no dilution arising from options in existence.

   5.              Reconciliation of loss before income tax to cash used by operations 
 
                                Six months        Six months     Year ended 
                                     ended             ended    31 December 
                                   30 June           30 June           2016 
                                      2017          2016 GBP       GBP '000 
                                  GBP '000    '000 unaudited        audited 
                                 unaudited 
 Profit/(loss) before income 
  tax                                  204             (862)        (1,913) 
 Share of associate's losses             3                 2             12 
 Depreciation charges                  387               337            680 
 Share based payment charge              -                73            130 
 Finance costs                           -                 -             15 
 Finance income                        (2)               (2)            (1) 
                               -----------  ----------------  ------------- 
 
                                       592             (452)        (1,077) 
 Increase in trade and 
  other receivables                  (757)              (74)           (76) 
 Increase/(decrease) in 
  trade and other payables             149              (72)            170 
                               -----------  ----------------  ------------- 
 
 Cash used by operations              (16)             (598)          (983) 
                               ===========  ================  ============= 
 
   6.            Intangible assets 
 
                    Intellectual          Licences   Development    Total 
                        property    and trademarks         Costs 
                             GBP               GBP           GBP      GBP 
 COST 
 At 1 January 
  2016                     8,657               447         3,189   12,293 
 Additions                     -                 -            83       83 
                   -------------  ----------------  ------------  ------- 
 
 At 30 June 2016           8,657               447         3,272   12,376 
 Additions                    83                 -           183      266 
                   -------------  ----------------  ------------  ------- 
 
 At 31 December 
  2016                     8,740               447         3,455   12,642 
 Additions                     -               115           103      218 
                   -------------  ----------------  ------------  ------- 
 
 At 30 June 2017           8,740               562         3,558   12,860 
                   =============  ================  ============  ======= 
 
 AMORTISATION 
 
 At 1 January 
  2016                     5,132               368         1,250    6,750 
 Charge for the 
  period                     219                 9           108      336 
                   -------------  ----------------  ------------  ------- 
 
 At 30 June 2016           5,351               377         1,358    7,086 
 Charge for the 
  period                     220                 7           117      344 
                   -------------  ----------------  ------------  ------- 
 
 At 31 December 
  2016                     5,571               384         1,475    7,430 
 Charge for the 
  period                     220                 8           159      387 
                   -------------  ----------------  ------------  ------- 
 
 At 30 June 2017           5,791               392         1,634    7,817 
                   =============  ================  ============  ======= 
 
 CARRYING AMOUNT 
 
 At 30 June 2017           2,949               170         1,924    5,043 
                   =============  ================  ============  ======= 
 
 At 31 December 
  2016                     3,169                63         1,980    5,212 
                   =============  ================  ============  ======= 
 
 At 30 June 2016           3,306                70         1,914    5,290 
                   =============  ================  ============  ======= 
 
   7.       Investment in equity accounted investee 
 
                                      Six months   Six months   Year ended 
                                       ended        ended 
                                      30 June      30 June      31 December 
                                       2017         2016         2016 
                                      GBP '000     GBP '000     GBP '000 
                                      unaudited    unaudited    audited 
 
 Percentage ownership 
  interest 
 and proportion of voting 
  rights                              29.90%       29.90%       29.90% 
 
                                      GBP          GBP          GBP 
 Non-current assets                   608          652          632 
 Current assets                       190          98           92 
 Non-current liabilities              (73)         (100)        (79) 
 Current liabilities                  (93)         (20)         (27) 
                                                  ----------- 
 
 Net assets (100%)                    632          630          618 
 
 Company's share of 
  net assets                          189          188          184 
 Separable intangible 
  assets                              206          221          214 
 Goodwill                             413          413          413 
                                                  ----------- 
 
 Carrying amount of 
  interest in associate               808          822          811 
 
 Revenue                              148          105          145 
 Profit/(loss) from 
  continuing operations               13           14           7 
 Post tax profit from                   -          -             - 
  discontinued operations 
 100% of total post-tax 
  profits                             13           14           7 
 29.9% of total post-tax 
  profits                             4            4            2 
 Amortisation of separable 
  intangible assets                   (7)          (7)          (14) 
                                     -----------  -----------  ------------ 
 
 Company's share of profit/(loss)     (3)          (3)          (12) 
 
 Other comprehensive                  -            -            - 
  income 
 100%                                 -            -            - 
 29.90%                               -            -            - 
 Company's share of other             -            -            - 
  comprehensive income 
 
 Total comprehensive 
  income (100%)                       13           14           7 
 Company's share of total 
  comprehensive income                (3)          (3)          (12) 
 
 Dividends received                   -            -            - 
  by the Company 
 
   8.              Share based payments 

Share Options

Eden Research plc operates an unapproved option scheme for executive directors, senior management and certain employees.

 
                           Six months ended             Six months ended 
                              30 June 2017                 30 June 2016 
 
                            Weighted                    Weighted 
                             average                     average 
                            exercise                    exercise 
                       price (pence)      Number   price (pence)        Number 
 
 Outstanding at 
  the beginning 
 of the period                    11   5,025,000              12     6,255,000 
 Granted during 
  the period                       -           -              13     1,050,000 
 Exercised during 
  the period                       -           -              13     (530,000) 
 Lapsed during 
  the period                       -           -              13   (2,750,000) 
 
 
                                  11   5,025,000              10     4,025,000 
 
 

The exercise price of options outstanding at the end of the period ranged between 8p and 18p (30 June 2016: 8p and 18p) and their weighted average contractual life was 1.4 years (30 June 2016: 1.9 years). None of the options have vesting conditions.

The weighted average share price (at the date of exercise) of options that lapsed during the period was nil p (30 June 2016: 13p).

The share based payment charge for the period was GBPnil (30 June 2016: GBP73,300).

Warrants

 
                         Six months ended          Six months ended 
                            30 June 2017             30 June 2016 
 
                          Weighted               Weighted 
                           average                average 
                          exercise               exercise 
                                                    price 
                     price (pence)      Number    (pence)      Number 
 
 Outstanding at 
  the beginning 
 of the period                  14   5,497,867         14   5,497,867 
 Granted during 
  the period                     -           -          -           - 
 Lapsed during 
  the period                     -           -          -           - 
 
 
                                14   5,497,867         14   5,497,867 
 
 

The exercise price of warrants outstanding at the end of the period ranged between 11p and 30p (30 June 2016: 11p and 30p) and their weighted average contractual life was 1.7 years (30 June 2016: 2.6 years).

   9.            Exceptional royalties refund 

In Eden's 2016 Report and Accounts, an accrual had been made of GBP570,000, being minimum royalties due to University of Massachusetts Medical School ("UMMS") under the licence agreement Eden signed with UMMS in 2011. Eden successfully re-negotiated some of the terms of the licence with UMMS and, as such, the full amount accrued has been credited to the Income Statement.

Other notes:

Eden Research is a technology development and commercialisation company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions for the global agrochemicals, animal health, and consumer product industries.

Eden's encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic compounds to enhance their performance and ease-of-use. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetics and pharmaceutical industries.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

Eden is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.

The Company has a number of patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. To date, the Company has invested in the region of GBP12m in developing and protecting its intellectual property and seeking regulatory approval for products that rely upon the Company's technologies. Revenues earned by the Company have been modest whilst the Company has concentrated on securing patent protection for its intellectual property, gaining regulatory approvals, identifying suitable industrial partners, and entering into commercial agreements.

In May 2013, the three actives that comprise Eden's first commercial product, 3AEY, were approved as new ingredients for use in plant protection products. This represented a major milestone in the commercialisation of Eden's technology and is a significant accomplishment for any company. To illustrate this point, one should note that in all of 2013, Eden's approvals represented 3 of only 10 new active ingredients approved by the EC.

3AEY has been authorised for sale in Kenya, Malta, Greece, Bulgaria, Spain, Italy, France, Cyprus, Albania and Portugal.

Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN.

For more information about Eden, please visit: www.edenresearch.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR GMGZLGLVGNZM

(END) Dow Jones Newswires

September 29, 2017 06:15 ET (10:15 GMT)

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