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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Healthcare Ent. | LSE:HCEG | London | Ordinary Share | GB00B6030H73 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 20.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMHCEG
RNS Number : 8516I
Healthcare Enterprise Group PLC
19 March 2010
Healthcare Enterprise Group plc
Interim results
Healthcare Enterprise Group plc (AIM: HCEG, the "Group", the "Company") the
international healthcare products group, today reports results for the 6 months
ended 31 December 2009.
Interim highlights
- Pre-exceptional net operating expenses GBP0.4m (2008: GBP0.4m)1
- Loss before tax was GBP0.4m (2008: GBP1.1m loss)1
- Net profit for the period was GBP0.1m following a profit of GBP0.5m on the
disposal of discontinued operations (2008: GBP1.3m loss)
- Profit per share 1.9p (2008: Loss 78.2p)1
- Loss per share from continuing operations 9.8p (2008: Loss 68.2p)1
The Group continued to function as an investment holding company with a minimal
overhead base which has been funded through a small fundraising and further
realisation of the Group's investments. Notwithstanding the current economic
climate, we remain convinced that Healthcare Enterprise Group has valuable
investments in exciting niches of the healthcare market.
Enquiries:
Healthcare Enterprise Group plc 07768 795 973
Lyndon Gaborit, Executive Deputy Chairman
Daniel Stewart 020 7776 6550
Andrew Edwards/Emma Earl
1 As restated, from continuing operations
Chairman's Statement
For the 6 months ended 31 December 2009 (unaudited)
Interim Results
The overall performance of the Group was as expected. The Group's associate
undertakings sustained losses and the Group reported an operating loss before
exceptional items of GBP0.4m (2008: loss GBP0.4m), although net operating
expenses, before exceptional items, were reduced 13% to GBP0.36m (2008:
GBP0.41m).
The loss before tax and after exceptional expenses from continuing operations,
was GBP0.4m (2008: loss GBP1.1m). The Group's loss per share from continuing
operations was 9.8p (2008: loss per share 68.2p1).
Ebiox Limited
The Group's majority shareholding in Ebiox Limited ("Ebiox") was disposed of in
July 2009 as part of the restructuring of its liabilities. Consequently Ebiox
was accounted for as an associate entity during the period and HCEG's share of
associate losses was GBP36,000. The Group held approximately 21% of Ebiox's
ordinary share capital as at 31 December 2009 and GBP500,000 of redeemable
preference shares.
On 4 June 2009, the Company announced that Ebiox had witnessed a surge in demand
following the outbreak of swine flu, and that the Ebiox management team, headed
by John Honey, was keen to take advantage of the flow of new orders.
Accordingly, the Ebiox board determined that the best way for Ebiox to raise new
funds (whilst the Company was still finalising its own restructuring) was to
undertake a fundraising exercise directly. Subscriptions for GBP700,000
representing 36.8% of the enlarged share capital of Ebiox were received
immediately and a further GBP100,000 was received in October 2009. The Ebiox
board believes that the balance of funds available to it should leave Ebiox
adequately funded for the short and medium term.
It is hoped that, with the injection of new funds (as mentioned above), and the
introduction of Mr. Nigel Wray to its board of Directors, Ebiox will be able to
achieve additional sales such as those which have now been contracted to Great
Ormond Street Hospital under the Ebiox brand, and generate further revenue by
distributing additional complimentary non-proprietary products.
1 Restated for changes in ordinary share capital
Reproductive Sciences Limited
The Group's majority shareholding in Reproductive Sciences Limited ("RSL") was
disposed of in July 2009 as part of the restructuring of its liabilities. RSL
was accounted for as an associate entity during the period and HCEG's share of
associate losses was GBP2,000. The Group holds approximately 27% of RSL's
ordinary share capital as at 31 December 2009 and redeemable preference shares
of GBP200,000.
RSL is currently focussed on Fertiligent's "Evie" product, a high quality, low
cost intra-uterine sperm pump to help assist infertile couples conceive. For a
marginal price increase, Fertiligent offers infertile couples an enhanced IUI
success rate and the chance of avoiding invasive and costly artificial
reproductive techniques such as in vitro fertilisation.
RSL owns 45% of the issued capital in the Israeli Fertiligent Limited company,
with options to increase that holding to 78% of the fully diluted capital. RSL
also owns the exclusive, worldwide sales & marketing rights to the Israeli
Fertiligent company's products.
A two-centre clinical study already conducted in Germany and Israel demonstrated
that the Fertiligent "Evie" product increases the IUI success rate by a factor
of 2.7, from 6% to 16%. A further clinical trial (supervised by Professor Martha
Dirnfeld an acknowledged world leader in the field) was conducted at the Carmel
Medical Centre, Israel, and as the trial took longer than expected and had mixed
results, a subsequent trial planned with the London Bridge Clinic (also under
her supervision) was delayed. Data from these trials will be used to support
market entry in Europe, the US and in selected Asian and Latin American
countries.
The Fertiligent "Evie" product is the first and only CE-approved slow release
IUI device. The company received CE Mark clearance in Q2 2008 and has
resubmitted an application for renewal of that CE mark based on the final
product specifications and components. Application was also made to the US FDA
in Q3 2008. Discussions with the FDA have been ongoing and, as there is no
directly comparable product, some delays have occurred while the FDA sought and
received additional information. FDA approval is now expected later this year.
RSL and Fertiligent have initiated a global commercialisation plan, including
contract manufacture in the US and negotiations with a US distributor, with the
aim of commencing sales later in 2010 following FDA approval.
RSL has continued to raise additional funds during the period from parties
associated with Nigel Wray. Those funds were necessary to meet RSL's working
capital requirements and to fund Fertiligent's FDA application.
In order to achieve its commercial objectives, RSL will be required to raise
additional capital and the Company will shortly be involved in discussions with
various potential new investors.
Other
The residual investment in First Aid Holdings Limited ("FAH") is considered
non-core and is to be realised at the first available opportunity. Other
residual investments have been sold or mothballed and the Group plans no further
investment in these products.
Current trading and outlook
The Company's restructuring and refinancing plans continued to be affected by
fallout of the world economic upheaval experienced in 2008. The inability to
raise new funds, either equity or debt, continued to cause difficulties for the
management.
The Board expects to continue to record a loss for the second half of the year
at the operating level, although it is anticipated that this will be lower than
the first half loss as the benefits of further cost reductions are experienced.
In the short term the Group expects to continue functioning as an investment
holding company with a minimal overhead base which will be funded through a
small fundraising or further realisation of the Group's investments. However,
the Company is currently looking at potential transactions which, if completed,
will lift the "Investing Company" status under London Stock Exchange AIM Rules
for Companies. A further announcement will be made at the appropriate time.
Notwithstanding the continuing difficult economic climate, we remain convinced
that Healthcare Enterprise Group has valuable investments in exciting niches of
the healthcare market.
Healthcare Enterprise Group plc
Consolidated income statement (unaudited)
for the 6 months ended 31 December 2009
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+----------+----------+
| | | | | | Group | | Group | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | Group | | Group | before | Exceptional | after | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | before | Exceptional | after | exceptional | items | exceptional | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | Exceptional | items | exceptional | items | (note | items | |
| | | | | | | 3) | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | items | (note | items | restated | restated | restated | |
| | | | 3) | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | 6 | 6 | 6 | 6 | 6 | 6 | |
| | | months | months | months | months | months | months | |
| | | to | to | to | to | to | to | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | 31 | 31 | 31 | 31 | 31 | 31 | |
| | | December | December | December | December | December | December | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| |Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Continuing | | | | | | | | |
| operations | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Administrative | 3 | (355) | (45) | (400) | (411) | (571) | (982) | |
| expenses | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Operating loss | | (355) | (45) | (400) | (411) | (571) | (982) | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Finance costs | | (1) | - | (1) | (147) | - | (147) | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Share of loss of | (38) | - | (38) | - | - | - | |
| associates | | | | | | | |
+------------------------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Loss before | | (394) | (45) | (439) | (558) | (571) | (1,129) | |
| tax | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Income tax | | - | - | - | - | - | - | |
| expense | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Loss for the | | | | | | | | |
| period | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| from continuing | (394) | (45) | (439) | (558) | (571) | (1,129) | |
| operations | | | | | | | |
+------------------------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Discontinued | 3,4 | - | 526 | 526 | (165) | - | (165) | |
| operations | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Profit/(loss) | | (394) | 481 | 87 | (723) | (571) | (1,294) | |
| for the period | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Attributable | | | | | | | | |
| to: | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Equity holders of | (394) | 481 | 87 | (723) | (571) | (1,294) | |
| the parent | | | | | | | |
+------------------------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Minority | | - | - | - | - | - | - | |
| interest | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| | | (394) | 481 | 87 | (723) | (571) | (1,294) | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Profit/(loss) | | | | | | | | |
| per share | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| From continuing | | | | | | | | |
| operations: | | | | | | | | |
+------------------------+-------------+-------------+-------------+-------------+-------------+-------------+----------+----------+
| Basic | 5 | | | (9.8) | P | | (68.2) | p | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+----------+----------+
| Diluted | 5 | | | (9.8) | P | | (68.2) | p | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+----------+----------+
| | | | | | | | | |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| From continuing and discontinued operations: | |
+------------------------------------------------------------------------------------------------------------+---------------------+
| Basic | 5 | | | 1.9 | P | | (78.2) | p |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+---------------------+
| Diluted | 5 | | | 1.9 | P | | (78.2) | p |
+----------------+-------+-------------+-------------+-------------+-------------+-------------+-------------+----------+----------+
Healthcare Enterprise Group plc
Consolidated balance sheet (unaudited)
As at 31 December 2009
+----------------------------+-------+-------------+----------+----------+----------+----------+
| | | | Group | | Group |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | 31 | | 30 | |
| | | | December | | June | |
+----------------------------+-------+-------------+----------+----------+----------+----------+
| | | | 2009 | | 2009 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Assets |Notes | | GBP'000 | | GBP'000 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Non-current assets | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Property, plant & | | | 12 | | 14 |
| equipment | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Goodwill | | | | | 2,084 |
| | | | - | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Other intangible assets | | | | | 440 |
| | | | - | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Investments in | | | - | | - |
| subsidiaries | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Investments in associates | 7 | | 1,327 | | - |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Available for sale | | | 193 | | 1,016 |
| investments | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | 1,532 | | 3,554 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Current assets | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Inventories | | | - | | 19 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Trade and other | | | 285 | | 423 |
| receivables | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Cash and cash equivalents | | | 57 | | 375 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | 342 | | 817 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Total assets | | | 1,874 | | 4,371 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Current liabilities | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Loans and borrowings | | | - | | (751) |
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Trade and other payables | | | (737) | | (1,764) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Current tax payable | | | - | | - |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | (737) | | (2,515) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Non-current liabilities | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Loans and borrowings | | | | | (2,054) |
| | | | - | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Other payables | | | - | | - |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | (2,054) |
| | | | - | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Net liabilities/assets | | | 1,137 | | (198) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Equity attributable to | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| the equity holders of the | | | | | |
| parent | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Ordinary shares | | | 1,451 | | 439 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Share premium | | | 42,642 | | 42,273 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Deferred shares | | | 8,371 | | 8,371 |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Retained earnings | | | (50,575) | | (50,662) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Translation reserve | | | (68) | | (68) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Other reserves | | | (684) | | (684) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | 1,137 | | (331) |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Minority interest | | | | | 133 |
| | | | - | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| | | | | | |
+----------------------------+-------+-------------+----------+----------+---------------------+
| Total equity | | | 1,137 | | (198) |
+----------------------------+-------+-------------+----------+----------+----------+----------+
Healthcare Enterprise Group plc
Consolidated cash flow statement (unaudited)
for the 6 months ended 31 December 2009
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | Group | | Group |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | 6 | | 6 |
| | | | months | | months |
| | | | to | | to |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | 31 | | 31 |
| | | | December | | December |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | 2009 | | 2008 |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Cash flows from operating | | | GBP'000 | | GBP'000 |
| activities | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Operating profit/(loss) | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| - continuing operations | | | (400) | | (982) |
+-----------------------------+---+-------------+------------------+----------+-------------+
| - discontinued operations | | | - | | (165) |
+-----------------------------+---+-------------+------------------+----------+-------------+
| - exceptional operating | | | 45 | | 571 |
| (profit)/costs charged | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Total group operating loss | | | (355) | | (576) |
| before exceptional items | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Cash payments in respect of | | | | - |
| exceptional costs | | - | | |
| and provisions | | | | |
+---------------------------------+-------------+------------------+----------+-------------+
| Depreciation and | | | 2 | | 35 |
| amortisation | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Decrease/(increase) in | | | 108 | | (129) |
| working capital | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Net cash from operations | | | (245) | | (670) |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Interest paid | | | (1) | | - |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Net cash from operating | | | (246) | | (670) |
| activities | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Cash flow from investing | | | | | |
| activities | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Purchase of plant and | | | (1) | | (1) |
| equipment | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Proceeds from sale of |4 | | (295) | | - |
| business (net of cash | | | | | |
| disposed) | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Purchase of other | | | | | (26) |
| investments | | | - | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Proceeds from sale of other | | | 18 | | 306 |
| investments | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Net cash used in investing | | | (278) | | 279 |
| activities | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Net proceeds from issue of | | 206 | | 285 |
| ordinary share capital | | | | |
+---------------------------------+-------------+------------------+----------+-------------+
| Debt due within one year | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| - issue of sterling | | | | | 100 |
| borrowings | | | - | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Net cash from financing | | | 206 | | 385 |
| activities | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Net decrease in cash and | | | (318) | | (6) |
| cash equivalents | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Cash and cash equivalents | | | 375 | | 47 |
| at 1 July | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
| Cash and cash equivalents | | | 57 | | 41 |
| at 31 December | | | | | |
+-----------------------------+---+-------------+------------------+----------+-------------+
Healthcare Enterprise Group plc
Statements of changes in equity
for the 6 months ended 31 December 2009
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | Issued | Share | Deferred | Other | Translation | Retained | | Minority | Total |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | capital | premium | shares | reserves | reserve | earnings | Total | interest | equity |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| At 1 July | 339 | 42,088 | 8,371 | (684) | (68) | (47,736) | 2,310 | - | 2,310 |
| 2008 | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Loss for | - | - | - | - | - | (1,294) | (1,294) | - | (1,294) |
| the period | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Total | - | - | - | - | - | (1,294) | (1,294) | - | (1,294) |
| recognised | | | | | | | | | |
| expense | | | | | | | | | |
| for the | | | | | | | | | |
| year | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Issue of | 100 | 185 | - | - | - | - | 285 | - | 285 |
| shares | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| At 31 | 439 | 42,273 | 8,371 | (684) | (68) | (49,030) | 1,301 | - | 1,301 |
| December | | | | | | | | | |
| 2008 | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | Issued | Share | Deferred | Other | Translation | Retained | | Minority | Total |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | capital | premium | shares | reserves | reserve | earnings | Total | interest | equity |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| At 1 July | 439 | 42,273 | 8,371 | (684) | (68) | (50,662) | (331) | 133 | (198) |
| 2009 | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Loss for | - | - | - | | | (439) | (439) | - | (439) |
| the period | | | | - | - | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Sale of | - | - | - | | | 526 | 526 | (133) | 393 |
| subsidiary | | | | - | - | | | | |
| undertakings | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Total | - | | - | - | | 87 | 87 | (133) | (46) |
| recognised | | - | | | - | | | | |
| expense | | | | | | | | | |
| for the | | | | | | | | | |
| year | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| Issue of | 1,012 | 369 | - | | - | - | 1,381 | - | 1,381 |
| shares | | | | - | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
| At 31 | 1,451 | 42,642 | 8,371 | (684) | (68) | (50,575) | 1,137 | - | 1,137 |
| December | | | | | | | | | |
| 2009 | | | | | | | | | |
+--------------+---------+---------+----------+----------+-------------+----------+---------+----------+---------+
Healthcare Enterprise Group plc
Notes to the Group financial information
for the 6 months ended 31 December 2009
1. Basis of preparation and accounting policies
This condensed consolidated interim financial information for the 6 months ended
31 December 2009 has been prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting" ("IAS 34"), as adopted by the European
Union. This condensed consolidated interim financial information should be read
in conjunction with the financial statements for the year ended 30 June 2009,
which have been prepared in accordance with IFRSs as adopted by the European
Union.
This condensed consolidated interim financial information does not constitute
statutory accounts within the meaning of Section 435 of the Companies Act 2006.
The statutory accounts for the year ended 30 June 2009 were approved by the
Board of directors on 22 December 2009 and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not contain a
statement made under Section 498 of the Companies Act 2006 but did contain an
emphasis of matter paragraph highlighting the significant uncertainty inherent
in the going concern basis of preparation given the Group's ongoing funding
requirements. The emphasis of matter paragraph stated:
"Emphasis of matter - going concern
In forming our opinion on the financial statements, which is not qualified, we
have considered the adequacy of the disclosures made in note 1 to the financial
statements concerning the group's and company's ability to continue as a going
concern.
In July 2009 the group completed a refinancing whereby GBP3,268,110 of
indebtedness was converted into a combination of equity in HCEG plc, Ebiox
Limited, Reproductive Sciences Limited and First Aid Holdings Limited. Given the
Group's continuing losses however, further funding will be required to meet the
Group's continuing operating costs and liabilities.
Going forwards the Group expects to function as an investment holding company
with a minimal overhead base which will be funded through small fund-raising
exercises, the first of which was completed in November 2009, and the further
realisation of the Group's investments. The Group is reliant upon raising these
funds to meet its ongoing liabilities as they fall due. The directors have a
reasonable expectation that shareholders will support the business through
additional funding or further asset realisations. However, the raising of these
additional funds is not certain. Should the Group be unable to raise these
funds, it may not be able to meet its ongoing operating costs and liabilities.
These conditions, along with the matters disclosed in note 1 to the financial
statements indicate the existence of a material uncertainty which may cast
significant doubt about the Group's and Company's ability to continue as a going
concern. The financial statements do not include the adjustments that would
result if the Group and Company were unable to continue as a going concern."
The disclosures made in note 1 referred to above, related to the going concern
basis of preparation of the financial statements and stated:
"The financial statements have been prepared on the going concern basis which
assumes that the Group will be able to meet its liabilities as they fall due.
Notwithstanding the net liabilities at the balance sheet date, in July 2009 the
Group completed a refinancing whereby GBP3,268,110 of indebtedness owed by the
company was deemed to have been satisfied by: the issue of 2,635,728 Healthcare
Enterprise Group new ordinary shares, the transfer of 738,360 Ebiox Limited
ordinary shares, the transfer of 16,240 Reproductive Sciences Limited ordinary
shares and the transfer of 303,688 First Aid Holdings Limited ordinary shares.
Going forwards the Group expects to function as an investment holding company
with a minimal overhead base. However, given the Group's continuing losses,
further funding will be required to meet the Group's continuing operating costs
and liabilities. These will be funded through small fund-raising exercises, the
first of which was completed in November 2009, and the further realisation of
the Group's investments. The directors believe that the Group's plans are
achievable given the continued support of significant shareholders and the
ability to achieve piecemeal investment sales already evidenced. After making
enquiries, and considering the uncertainties surrounding funding and future
operations described above, the directors have a reasonable expectation that the
Group and the Company have adequate resources, or the expectation of access to
adequate resources, to continue trading for the foreseeable future. They
therefore believe it is appropriate to prepare the financial statements on a
going concern basis. However, these conditions constitute a material uncertainty
that may cast doubt about the Group's and Company's ability to continue as a
going concern. The financial statements do not contain the adjustments that
would result if the Group and Company were unable to continue as a going
concern."
The basis of preparation described above for the period ended 30 June 2009 is
the same basis used to prepare these interim financial statements.
This condensed consolidated interim financial information has neither been
reviewed or audited.
Except as described below, the accounting policies applied are consistent with
those of the annual financial statements for the year ended 30 June 2009, as
described in those financial statements.
As required by IAS 34 and consistent with prior years, taxes on income in the
interim periods are accrued using the tax rate that would be applicable to
expected total annual earnings.
The implementation of the standards and interpretations listed in the 2009
financial statements with an effective date for accounting periods beginning on
1 January 2009 and 30 June 2009 have not had a material impact on the interim
financial information for the six months ended 31 December 2009.
2. Segmental reporting
Primary reporting format - business segments
+----------------------------------------------+---------+----------+---------+
| | Other and corporate |
+----------------------------------------------+------------------------------+
| Continuing operations | 2009 | | 2008 |
+----------------------------------------------+---------+----------+---------+
| | GBP'000 | | GBP'000 |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Segment revenue | - | | - |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Operating loss before exceptional items | (355) | | (411) |
+----------------------------------------------+---------+----------+---------+
| Exceptional operating costs | (45) | | (571) |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Segment result | (400) | | (982) |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Interest payable | (1) | | (147) |
+----------------------------------------------+---------+----------+---------+
| Share of loss of associates | (38) | | - |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Loss before taxation | (439) | | (1,129) |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Taxation | - | | - |
+----------------------------------------------+---------+----------+---------+
| | | | |
+----------------------------------------------+---------+----------+---------+
| Loss for the period from continuing | (439) | | (1,129) |
| operations | | | |
+----------------------------------------------+---------+----------+---------+
3. Exceptional items
+--------------------------------------+------+---------+--+---------+
| | | 2009 | | 2008 |
+--------------------------------------+------+---------+--+---------+
| | | GBP'000 | | GBP'000 |
+--------------------------------------+------+---------+--+---------+
| Exceptional items relating to | | | | |
| continuing operations | | | | |
+--------------------------------------+------+---------+--+---------+
| Impairment of other assets | | - | | 571 |
+--------------------------------------+------+---------+--+---------+
| Partial disposal of associate | | 45 | | - |
+--------------------------------------+------+---------+--+---------+
| | | | | |
+--------------------------------------+------+---------+--+---------+
| | | 45 | | 571 |
+--------------------------------------+------+---------+--+---------+
| | | | | |
+--------------------------------------+------+---------+--+---------+
| Exceptional items relating to | | | | |
| discontinued operations | | | | |
+--------------------------------------+------+---------+--+---------+
| Profit on disposal of discontinued | | (526) | | |
| operations | | | | - |
+--------------------------------------+------+---------+--+---------+
| | | | | |
+--------------------------------------+------+---------+--+---------+
| | | (526) | | |
| | | | | - |
+--------------------------------------+------+---------+--+---------+
2009 Exceptional items
In July 2009 the Group completed a refinancing whereby GBP3,268,110 of
indebtedness owed by the company was deemed to have been satisfied by: the issue
of 2,635,728 Healthcare Enterprise Group plc ("HCEG") new ordinary shares, the
transfer of 738,360 Ebiox Limited ordinary shares, the transfer of 16,240
Reproductive Sciences Limited ordinary shares and the transfer of 303,688 First
Aid Holdings Limited ordinary shares.
A consequence of this refinancing was that the Group's holding in the ordinary
share capital of Ebiox Limited and Reproductive Sciences Limited fell to
approximately 24% and 45% respectively. As HCEG had sold a controlling interest
in these subsidiaries, they have been consolidated as associated in these
interim financial statements and the profit on disposal recorded as an
exceptional item in the period.
In October 2009, Ebiox Limited issued 100,000 GBP0.25 ordinary shares for
GBP100,000 and HCEG's interest was diluted to 23% giving rise to a loss on
disposal of GBP45,000.
4. Discontinued operations
Ebiox Limited ("Ebiox") and Reproductive Sciences Limited ("RSL") were
effectively sold in the period and are discontinued operations. As a result,
revenue for these businesses is excluded from the income statement and the
results of the businesses, including any associated exceptional items, are
recorded in a single line on a post-tax basis. Both Ebiox and RSL were sold on
15 July 2009.
+-------------+-------+-+--+------------------------+---------+----------+--------------+----------+---------+
| | | 2009 | | 2009 | | |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| | | Ebiox | | Reproductive | | 2009 |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| | | | | Sciences | | Total |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| | | | | | | |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| Consideration received (cancellation of loans) | 1,468 | | 464 | | 1,932 |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| | | | | | | |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| Minority interest disposed | 133 | | - | | 133 |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| Investment in associates | 1,390 | | 132 | | 1,522 |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| | | | | | | |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| Net assets disposed: | | | | | |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| Goodwill | | 2,084 | | | | 2,084 |
| | | | | - | | |
+--------------------------+------------------------+---------+----------+--------------+----------+---------+
| Intangible assets | | 440 | | - | | 440 |
+--------------------------+------------------------+---------+----------+--------------+----------+---------+
| Property, plant and equipment | 1 | | - | | 1 |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| Available for sale assets | - | | 374 | | 374 |
| | | | | | |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| Inventories | | 19 | | - | | 19 |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| Trade and other receivables | 395 | | - | | 395 |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| Cash at bank | | 295 | | - | | 295 |
+-----------------------+---------------------------+---------+----------+--------------+----------+---------+
| Trade and other payables | (221) | | (326) | | (547) |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| | | | | | | |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| Pre-tax (loss)/profit on disposal | (22) | | 548 | | 526 |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| | | | | | | |
+-------------+-------------------------------------+---------+----------+--------------+----------+---------+
| Net cash outflow comprises: | | | | | |
+---------------------------------------------------+---------+----------+--------------+----------+---------+
| Cash disposed of | | (295) | | - | | (295) |
+---------------------+-----------------------------+---------+----------+--------------+----------+---------+
| | | | | | | | | | |
+-------------+-------+-+--+------------------------+---------+----------+--------------+----------+---------+
There were no other profits or cashflows from discontinued operations in the
period.
5. Loss per share
(a) Basic loss per share
+----------+---------+------+----+---------------------+----------+-----------+----------+-----------+
| | | | | | | | 6 months |
| | | | | | | | to |
+----------+---------+-----------+---------------------+----------+-----------+----------+-----------+
| | | | | | 6 months | | 31 |
| | | | | | to | | December |
+----------+---------+-----------+---------------------+----------+-----------+----------+-----------+
| | | | | | 31 | | restated |
| | | | | | December | | |
+----------+---------+-----------+---------------------+----------+-----------+----------+-----------+
| | | | | | 2009 | | 2008 |
+----------+---------+-----------+---------------------+----------+-----------+----------+-----------+
| | | | | | GBP'000 | | GBP'000 |
+----------+---------+-----------+---------------------+----------+-----------+----------+-----------+
| | | | | | | | |
+----------+---------+-----------+---------------------+----------+-----------+----------+-----------+
| Profit/(loss) attributable to equity holders of the | | 87 | | (1,294) |
| Company | | | | |
+------------------------------------------------------+----------+-----------+----------+-----------+
| Discontinued operations | | | | (526) | | 165 |
+---------------------------+----+---------------------+----------+-----------+----------+-----------+
| | | | | | | | |
+----------+----------------+----+---------------------+----------+-----------+----------+-----------+
| Loss attributable to equity holders of the Company from | (439) | | (1,129) |
| continuing operations | | | |
+-----------------------------------------------------------------+-----------+----------+-----------+
| | | | | | | | | |
+----------+---------+------+----+---------------------+----------+-----------+----------+-----------+
The weighted average number of ordinary shares in issue during the period was
4,497,257 (2008 restated: 1,655,674). In July 2009 the ordinary shares of
Healthcare Enterprise Group plc were consolidated with 1 new 25p ordinary share
being issued for every 250 old 0.1p ordinary shares held, the average weighted
number of ordinary shares in the prior year earnings per share calculation has
been adjusted to be comparable with 2009.
(b) Diluted loss per share
Because the inclusion of potential ordinary shares would decrease the basic loss
per ordinary share from continuing operations, they are not deemed to be
dilutive and accordingly the basic and diluted loss per ordinary share are
identical.
6. Related party transactions
LJ Gaborit is the Executive Chairman of Industrial Management and Equity Limited
('IME') and controls this company. The Group purchased strategic consultancy
services from IME totalling GBP90,000 (2008: GBP90,000) in the period. As at 31
December 2009 the Group owed IME for services invoiced GBPnil (30 June 2009:
GBPnil) and total accruals for services provided but not invoiced under the
terms of the contract of GBPnil (30 June 2009: GBP222,000).
JH Gunn is a Director of Wengen Limited and controls this company. The Group
purchased advisory services, including directors fees, from Wengen Limited
totalling GBP12,500 (2008: GBP12,500). As at 31 December 2009 the Group owed
Wengen Limited GBP7,188 (30 June 2009: GBP30,000). JH Gunn is also an Executive
Deputy Chairman of Ludgate Investments Limited ('Ludgate') an early stage
venture capital provider for high growth companies. Ludgate have performed
occasional corporate finance advisory project related work for the Group,
services purchased from Ludgate totalled GBP20,729 (2008: GBPnil).
7. Investments in associates
Investments in associates comprise:
+----------+--------+---------------------------------------+----------+---------+
| | | | 2009 |
+-------------------+---------------------------------------+----------+---------+
| | | | Total |
+-------------------+---------------------------------------+----------+---------+
| | | | GBP'000 |
+-------------------+---------------------------------------+----------+---------+
| | | | |
+-------------------+---------------------------------------+----------+---------+
| Ebiox Limited | | | 739 |
+-------------------+---------------------------------------+----------+---------+
| Ebiox Limited preference shares | | 500 |
+-----------------------------------------------------------+----------+---------+
| Reproductive Sciences Limited | | (74) |
+-----------------------------------------------------------+----------+---------+
| Reproductive Sciences Limited preference shares | | 200 |
+-----------------------------------------------------------+----------+---------+
| | | | |
+----------+------------------------------------------------+----------+---------+
| | | | 1,365 |
+----------+------------------------------------------------+----------+---------+
| Less: | | | |
+----------+------------------------------------------------+----------+---------+
| Share of associate losses | | (38) |
+-----------------------------------------------------------+----------+---------+
| | | | |
+----------+------------------------------------------------+----------+---------+
| Investment in associates | | 1,327 |
+-----------------------------------------------------------+----------+---------+
| | | | | |
+----------+--------+---------------------------------------+----------+---------+
The Group currently holds 411,640 ordinary shares of 25p in Ebiox Limited
("Ebiox"), this represents approximately 21% of the issued ordinary share
capital. The Group holds 19,260 ordinary shares of GBP1 in Reproductive Sciences
Limited ("RSL"), this represents approximately 27% of the issued ordinary share
capital. The Directors believe that the Group exercises significant influence
over both of these entities and hence Ebiox and RSL have both been treated as
associate undertakings.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KKLBFBXFBBBV
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