Interim Results

RNS Number:9393M
Lombard Medical PLC
30 June 2003


30 June 2003


Lombard Medical plc
Unaudited interim results for the period
from 1 October 2002 to 31 March 2003

Lombard Medical plc
Unaudited Profit & Loss
for the period from 1 October 2002 to 31 March 2003

                                     six months     six months
                                          ended          ended        year to
                                    31 Mar 2003    31 Mar 2002    30 Sep 2002
                           notes          #'000          #'000          #'000

Turnover                                    143            241            359
Cost of sales                               (41)           (39)          (131)
Gross profit                                102            202            228
Development and                          (2,151)        (1,979)        (4,240)
administrative expenses
Operating loss before                    (2,049)        (1,777)        (4,012)
amortisation of
goodwill
Amortisation and                              -         (6,116)       (25,092)
impairment of goodwill
Operating loss                           (2,049)        (7,893)       (29,104)

Interest net                               (224)           (72)           (87)

Amounts written off                           -              -           (250)
investments

Loss on ordinary                         (2,273)        (7,965)       (29,441)
activities before
taxation
Taxation on loss on                           -              -            238
ordinary activities
Loss for the financial                   (2,273)        (7,965)       (29,203)
period

Basic loss per ordinary        3           (4.2)         (14.7)         (54.0)
share



Lombard Medical plc
Unaudited Balance Sheet
as at 31 March 2003

                                    31 Mar 2003    31 Mar 2002    30 Sep 2002
                           notes          #'000          #'000          #'000

Fixed assets
Intangible assets                            63         19,047             67
Tangible assets                             553            591            611
Investments                               4,263          6,408          4,263
                                          4,879         26,046          4,941

Current assets
Stocks                                       95            124            102
Debtors                                     120            174            250
Cash at bank and in                         190          1,002          1,420
hand
Restricted deposits            4          1,400          1,400          1,419
relating to bank loan
                                          1,805          2,700          3,191

Creditors: amounts                       (5,371)        (1,109)        (1,244)
falling due within one
year

Net current (liabilities)                (3,566)         1,591          1,947
/assets

Creditors: amounts
falling due after more
than one year
Loans                                         -         (3,342)        (3,342)
8% unsecured convertible       5         (2,421)             -         (2,385)
redeemable loan notes
2007

Net (liabilities)/                       (1,108)        24,295          1,161
assets

Called up share                           5,410          5,406          5,406
capital
Share premium                            31,145         31,146         31,145
Other reserve                             1,469          1,469          1,469
Contingent shares to be                     900          2,795            900
issued
Profit and loss                         (40,032)       (16,521)       (37,759)
account
Equity shareholders'                     (1,108)        24,295          1,161
funds



Lombard Medical plc
Cash Flow Statement
for the period from 1 October 2002 to 31 March 2003

                                     six months     six months
                                          ended          ended        year to
                                    31 Mar 2003    31 Mar 2002    30 Sep 2002
                           notes          #'000          #'000          #'000
Net cash outflow from          6         (1,737)        (2,097)        (4,054)
operating activities

Return on investments and
servicing of finance
Interest received                             -              -             66
Interest paid                              (143)           (72)          (150)
Issue costs paid                              -              -           (118)
Net cash                                   (143)           (72)          (202)
outflows from
returns on
investments and
servicing of
finance

Taxation received                             -              -            238

Capital expenditure and
financial investment
Purchase of tangible                        (54)          (148)          (218)
fixed assets
Increase in restricted                        -         (1,400)        (1,400)
cash deposits
Net cash outflow from                       (54)        (1,548)        (1,618)
capital expenditure and
financial investments

Acquisitions and
disposals
Purchase of subsidiary                        -            (84)           (84)
undertakings
Net cash outflows from                        -            (84)           (84)
acquisitions and
disposals

Net cash outflow before                  (1,934)        (3,801)        (5,720)
financing
Financing:
Issue of ordinary                             4              -              -
shares
Issue of loan notes                           -              -          2,500
2007
Bank loan                                   750              -              -
advanced
Repayment of                                  -              -           (158)
loans
Repayment of loan notes                     (50)           (72)           (75)
2006
Repayment of lease                            -              -             (2)
finance
Net cash inflow/(outflow)                   704            (72)         2,265
from financing

Decrease in cash in the                  (1,230)        (3,873)        (3,455)
period



Notes to the unaudited interim financial information

1.   General
     
     The interim results are for the period from 1 October 2002 to 31 March 
     2003, areunaudited and do not constitute accounts within the meaning of 
     section 240 of the Companies Act 1985.  The interim results will be made 
     available, upon request, from the Company's head office at 67 Milton Park, 
     Abingdon, Oxfordshire OX14 4RX or from the Company's website at 
     www.lombardmedical.co.uk.

     The results for the period are all attributable to continuing operations.

2.   Basis of preparing the financial statements - going concern assumption
     
     The financial statements have been prepared on the going concern basis, 
     which assumes that the Group will continue in operational existence for the
     foreseeable future.

     Forecasts have been prepared taking into account the requirements to 
     complete product development and achieve commercial sales. Bank and loan 
     facilities held at 31 March 2003 were fully utilised and insufficient to 
     continue funding the forecast trading activities of the Group for a further 
     twelve months.

     Further new funds amounting to approximately #2.5m, arrangement for the
     continuance of the existing bank facility of #1m until 30 January 2004, the
     exchange of the Loan Notes 2007 into equity and the option to defer 
     repayment of a loan of #1.94m to 28 February 2004 have been provided as a 
     result of the acquisition of the Company by Advanced Medical Technologies 
     plc ('AMT'). The forecasts indicate that these arrangements will provide 
     the Group with sufficient funds and facilities to meet its requirements 
     until January 2004

     The directors believe that the Group will be able to obtain additional 
     funds before January 2004 and therefore it is appropriate that these 
     financial statements are prepared on the going concern basis.

3.   Loss per share
     
     Basic loss per share has been calculated on the loss for the period 
     divided by the weighted average number of ordinary shares in issue 
     54,073,037 (2002: 54,055,100).

     The warrants and share options outstanding at 31 March are considered to be
     anti-dilutive in that their conversion into ordinary shares would not 
     increase the net loss per share. Consequently, there is no diluted earnings 
     per share to report for the period.

4.   #1,400,000 of the cash balances are deposited as security for #1,400,000 of 
     bank borrowings and cannot be utilised unless this is repaid or the 
     security released.

5.   The loan notes 2007 are being exchanged for equity in AMT.
     
6.   Reconciliation of operating loss to net cash outflow from operating
     activities


                      31 Mar 2003           31 Mar 2002           30 Sep 2002
                            #'000                 #'000                 #'000

Operating loss            (2,049)               (7,893)              (29,104)
for the period
Amortisation                    -                 6,116                25,092
and impairment
of goodwill
Depreciation                  116                    56                   111
and
amortisation of
licences
Decrease in                     8                    92                   114
stocks
Decrease in                   130                    94                    18
debtors
(Decrease) /                   58                  (562)                 (285)
increase in
creditors
Net cash                   (1,737)               (2,097)               (4,054)
outflow from
operating
activities

Opening cash                2,820                 4,875                 4,875
balances
Net cash                   (1,230)               (3,873)               (3,455)
outflow
Increase in                     -                 1,400                 1,400
restricted cash
balances
Closing cash                1,590                 2,402                 2,820
balances
(including
restricted
deposit)


7.   Post balance sheet events

     A recommended offer for the whole of the issued share capital of the 
     Company was received from AMT on 2 May. The offer was declared 
     unconditional in all respects on 27 May.

     On Friday 27 June 2003, the board of Lombard applied to the London Stock
     Exchange for cancellation of admission to AIM of its ordinary shares with 
     effect from 7:00am on Monday 28th July 2003.

8.   2002 Annual Report - Independent auditors' report

     The independent auditors' report on the 2002 Annual Report contained a 
     reference to the fundamental uncertainty in respect of the use of the going 
     concern basis in the preparation of the accounts.


Contacts:

Tony Canning (Chairman)  0207 710 4500

Rhod Jones (Company Secretary) 01235 841765


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