We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Lombard Med.Tec | LSE:LMT | London | Ordinary Share | GB00B7FT8W85 | ORD 20P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 188.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:1703A Lombard Medical Technologies PLC 22 March 2006 Lombard Medical Technologies PLC Company Completes Successful Year Preliminary Results for the Year ended 31 December 2005 London, UK, 22 March 2006 - Lombard Medical Technologies PLC (AIM: LMT), the specialist medical device company, today announces its results for the year ended 31 December 2005. Operating Highlights * Investigational Device Exemption (IDE) approval received from the FDA for a pivotal US clinical trial of the AorfixTM endovascular stent graft in the treatment of abdominal aortic aneurysms * CE Mark received for improved version of AorfixTM to be launched in April 2006 and expected to increase sales * Significant progress made with the development of an endovascular stapler for the fixation of stent grafts. CE Mark approval in Europe expected in the first half of 2006 * Appointment of four new Board members with a wealth of experience in the medical device and related industries Financial Highlights * Successful flotation on the Alternative Investment Market of the London Stock Exchange (AIM) raising #26.2 million before expenses * Over fourfold increase in turnover to #169,000 (2004: #40,000) * Operating loss before exceptional items and goodwill amortisation increased by #2.6 million to #6.7 million (2004: #4.1 million) reflecting increased investment in R&D and a step change in sales and marketing costs Alistair Taylor, Executive Chairman of LMT, commented: "2005 has been a year of change and considerable progress. We operate in rapidly growing markets where we believe our products have real competitive advantage. The successful flotation on AIM has given us the funds to implement our key strategic objectives and we are confident of further strong progress in the coming year." Enquiries: Lombard Medical Technologies PLC Tel: 01235 750 800 Alistair Taylor, Executive Chairman Brian Howlett, Chief Executive Officer Financial Dynamics Tel: 020 7831 3113 David Yates / John Gilbert Notes to editors Lombard Medical Technologies is a medical devices company developing stent grafts and other medical products for use in the treatment of vascular disease. The Company's lead product, AorfixTM, is a stent graft for the treatment of aortic aneurysms, a balloon-like enlargement of the aorta which, if untreated, may rupture and cause death. Abdominal and thoracic aortic aneurysms are the 13th largest cause of death in the US and the market is estimated to be worth approximately US$2 billion by 2010. AorfixTM is currently being commercialised in the EU, with US clinical trials expected to commence during 2006. The Company has a strategic collaboration with one of the world's leading medical devices companies, Boston Scientific. Lombard Medical has recently successfully completed its initial public offering on AIM and was admitted to listing in December 2005, raising #23.9 million, net of expenses. The Company, based in Oxfordshire & Yorkshire, currently employs 56 people. Further background on the Company can be found at www.lombardmedical.com. Chairman's Statement Introduction 2005 has been a year of change and considerable progress. The successful flotation on the Alternative Investment Market of the London Stock Exchange (AIM) that raised #26.2m before expenses has given LMT the funds to implement its key strategic objectives. Meanwhile the new Board appointments have given LMT an experienced management team to execute those objectives. Use of funds The proceeds from the placing at the time of flotation are being used: * to fund the US clinical trials programme for the AorfixTM stent graft; * commence EU and US trials of a thoracic stent graft; * develop clinical support and marketing infrastructure; and * to strengthen the balance sheet and repay loans and overdrafts. Board changes In October, Stephen Terry resigned from his position as CEO due to ill health and in November, John Kerslake resigned from his position as CFO. The Board would like to thank Stephen and John for their contribution to LMT over the last few years. With the appointment of Brian Howlett in November, LMT gained a Chief Executive with an excellent track record of growing sales, and extensive experience in the medical device industry having served as General Manager of Boston Scientific Limited for six years. Tim Hall, a Chartered Accountant with extensive senior financial management experience gained in the pharmaceutical industry, also joined the Board in November as Finance Director. Commercialisation The Company currently markets its AorfixTM stent graft directly through its own sales force in the UK and through distributors in 17 other countries. The launch in April 2006 of an improved version of AorfixTM, with greater flexibility, electropolished wire and more radio opaque markers is expected to help accelerate sales. The unique benefits of AorfixTM were recently publicised in the Vascular journal in an abstract by Jean-Noel Albertini, MD et al. at the Vascular Surgery Department, Hospital Robert Debre, Reims, France which concluded that AorfixTM was the only stent graft which did not develop endoleaks, regardless of the angulation of the neck of the abdominal aorta. The publication of this report has once again endorsed the benefits of our AorfixTM stent graft, and supports the growing body of evidence that suggests that our AorfixTM is the only stent graft that can successfully treat abdominal aortic aneurysms in severely angulated necks. In October, Boston Scientific Limited was granted an extension to its existing option to act as exclusive distributor of the Company's stent grafts for the treatment of abdominal aortic aneurysms and thoracic aortic aneurysms in territories outside the USA. The extension was granted to allow Boston Scientific more time to complete due diligence on the Company's products, processes and intellectual property. Development LMT has received an Investigational Device Exemption (IDE) from the FDA to commence US clinical trials of AorfixTM. The trial begins in Q1 2006 and is due to be completed in Q1 2008, with FDA approval expected either in Q4 2008 or Q1 2009. Significant progress was also made during the year on LMT's unique endovascular stapler. The initial market for this device will be for the endovascular fixation of first generation AAA stent grafts that have begun to migrate. European CE Mark approval for this device is expected in the first half of the year with FDA approval, following a small trial, in early 2007. Good progress has been made over the last year on LMT's thoracic stent graft and European clinical trials are expected to start in Q3 of 2006 with US clinical trials following in the second half of 2007. Summary AAA's are becoming increasingly recognised as a major cause of death, and, with the commencement of the preventative screening programme of AAA's in the US, there is the potential to diagnose many more aneurysms before they rupture, enabling the insertion of a stent graft at a much earlier stage and resulting in many more lives saved. I am confident that in 2006 LMT will make a major breakthrough towards full commercialisation of our innovative technologies. In the words of Ron Fairman, MD of the University of Pennsylvania, "The AorfixTM device really enhances our ability to extend the technology to more patients. It is a real contribution, not just another device......" Dr Fairman is the Principal Investigator of the LMT PYTHAGORAS trial in the USA. The LMT team is proud to have brought to the market less invasive technologies that pose less risk and trauma to patients, improve healthcare productivity and offer more clinical choices to medical practitioners. Alistair Taylor Executive Chairman Chief Executive's Review of Operations Development of the AorfixTM endovascular stent graft progressed on several fronts over the past year with the FDA granting IDE approval for the US clinical trial and the 100 implant milestone being reached in Europe, some of which have now been in place for up to four years. The prevalence of abdominal aortic aneurysms (AAA) is increasing and there is an estimated 1.7 million Americans who are unaware that they have AAA, with only 250,000 to 350,000 being diagnosed each year. The US market for AAA stent grafts is forecast to reach over $0.5 billion by 2008 and we anticipate that the worldwide market will be over $1 billion by 2010. In February this year, we were very pleased to hear that the US Congress passed legislation for one-time ultrasound screening to commence for abdominal aortic aneurysms (AAA) in the US. With this legislation, patients at risk for AAA will receive the ultrasound screening benefit as part of their "Welcome to Medicare" physical, the US government healthcare programme for the 41 million elderly, in the hope that more AAA's will be diagnosed and treated with a stent graft. Coverage will begin in early 2007. LMT is also developing a stent graft for the treatment of Thoracic Aortic Aneurysms (TAA), which is nearing completion. Estimates of the number of annual diagnoses range from 15,000 to 30,000 in the USA, with more than 16,000 diagnosed in Europe annually. Like AAA, TAA are believed to be under diagnosed, since most patients are asymptomatic. An estimated 70% of TAA are currently not treated, but this number is expected to fall in the coming years. Thoracic stent grafts hold great promise not only for the treatment of TAA's but also for other anomalies of the thoracic aorta, including acute and chronic dissections, penetrating ulcers, pseudo-aneurysms and traumatic injuries. It is for these reasons that we believe that the TAA stent graft has the potential to grow substantially in a market worth $1 billion by 2010. In addition LMT is developing a range of open surgery and endovascular staplers. Several of the first generation stent grafts have inadequate fixation, which can result in the migration of the graft. The endovascular stapler has demonstrated in vitro an ability to fix strongly a migrating stent graft, so that it has the potential to be not only a repair device but also used in new implantations. With the potential growth in TAA stent grafts, fixation becomes even more of an issue as the thoracic aorta is a very dynamic anatomical environment. A further application is in the less invasive fixation of percutaneous heart valves which is a new and fast developing market. We have opened discussions with third parties with regard to licensing and/or distribution arrangements for the endovascular line. The Company's Polymer Coatings Division has developed a series of products, including drug delivery coatings for coronary stents that will deliver one or more drugs on a programmable basis. We are in discussions with several companies with a view to licensing out the coatings for the treatment of coronary and peripheral vascular disease as well as applications for urology and dermatology. Commercialisation LMT has made considerable commercial progress during 2005. Turnover increased over fourfold to #169,000 in 2005. Successful achievements include: * the establishment of reference centres for the implantation of Aorfix TM in the UK and Ireland, Greece and Poland; * the roll out of implantation of the AorfixTM AAA stent graft in 12 countries throughout Europe; * the strong performance of AorfixTM in more than 100 clinical and commercial implants. No endoleaks, migration, or kinking of the device have been experienced; * significant progress has been made in developing the TAA device and the endovascular stapler to pre-clinical trials as well as progressing proprietary medical device coating technology for a variety of applications in the cardiovascular, urology and dermatology markets. A CE mark has been granted for wound dressings based on hydrogels that have been outlicensed to Brightwake Limited for launch in the UK in the first half of 2006; * the recent approval of the IDE by the FDA to commence clinical trials of AorfixTM; and * the successful raising of #30.9 million before expenses to fund future commercial and product developments in the Company. Business Goals and Strategies LMT's objective is to become a leading developer of innovative solutions for the treatment of cardiovascular and other diseases of importance to global morbidity and mortality. Successful elements of our business strategy will continue as follows: * to focus on unmet clinical, patient and health economic needs in the Company's core markets - AAA, TAA and surgical joining; * to continue to develop existing products - AAA and TAA stent grafts, as well as an endovascular stapler that can be used to secure migrating AAA stent grafts; * to develop new products and innovate new treatment methods; for example our plans include the development of lower profile stent grafts that will widen application to include women and other patients with smaller vessels as well as reducing in-hospital stay to overnight or day-case; * to work on second-generation drug eluting polymers that can be used to improve further the restenosis rates achieved by current drug eluting stents in coronary artery disease; * to focus on the USA and EU as primary markets for our technologies. The USA has the largest population that could benefit from our existing and planned products and has an advantageous climate for re-imbursement; through 2006 and 2007 LMT will be dedicated to conducting FDA approved clinical trials in the USA to gain the earliest possible entry of our stent graft products to that market; and * to develop strategic partnerships with leading medical device companies for marketing, distribution and licensing - the Company has signed an agreement with Boston Scientific whereby it has an option to distribute our Aorfix stent graft products in markets outside the USA. Operations and Staffing During 2006 a significant step forward for our business will be the establishment of a base for our operations in the USA, the major world market for medical devices. As a measure of our commitment to this market Peter Phillips the present Managing Director for the Cardiovascular Devices Division will assume the title of President of Lombard Medical Technologies Inc., and he will relocate to the Boston area where our US facility will be located. His responsibilities will include: * the establishment of US infrastructure for Lombard Medical Technologies; * implementation of the US FDA clinical programme for the AorfixTM endovascular stent graft; * the formation and management of strategic relationships with major US medical device companies; * the establishment of centres of clinical excellence in the USA for LMT products; and * obtaining FDA approval for the Company's Endovascular Stapling device. The Company is also expecting to recruit a Worldwide Director of Regulatory Affairs who will support Peter in the pivotal US clinical trials and FDA approval of the AAA and TAA applications of the AorfixTM endovascular stent graft, as well as in the FDA approval of the Endovascular Stapling device. The Worldwide Director of Regulatory Affairs will also be responsible for supporting and directing the headquarters regulatory affairs staff in the UK, in their regulatory submissions and activities in markets outside the US, with particular emphasis on Europe and Japan. Outside the USA we have strengthened our direct sales force in the UK and are appointing four clinical/sales specialists in continental Europe who will boost the speed of adoption of AorfixTM through in-hospital training of the AorfixTM technology and support our distributors in the development of AorfixTM market share in key markets such as Italy and Germany. This effort will be led by Andrew Tasker as International Sales and Marketing Director. Andrew joins us with a wealth of experience and success in senior international sales and marketing positions in the pharmaceutical and medical device sectors, most recently with Pfizer. Strong product development capabilities are essential to enhancing the Company's core technologies, developing new product applications for these technologies and maintaining competitiveness. LMT has invested a significant amount of human and financial resources in research and development. We have assembled a team of highly experienced engineers, scientists and technicians which will be expanded in 2006 in order to develop further enhancements to our existing products and innovative new product approaches to the treatment of cardiovascular disease. Examples of future anticipated developments include: * redesign of components to facilitate increased automation of manufacture; * increased product size ranges for both AAA and TAA stent grafts; * improved markers to aid visualisation on x-ray; * continuously woven graft material to produce a smaller implant and delivery system; and * investigation into new materials and processes to reduce the profile of the implant further and, therefore the size of the delivery system. The Company is also boosting its investment in its manufacturing operations as our sales and clinical trial uptake accelerate during 2006 and beyond. We will continue as key objectives: * to reduce unit cost further, and * to maintain high standards of reliability; and * to implement continuous quality improvement. Prospects In 2006 we look forward to using the funds raised in the float to continue to deliver on our strategy that we laid out in our admission document. This year we expect to commence the US clinical trials for our AorfixTM stent graft in AAA's, launch the new flexible delivery system for our AAA stent grafts in the EU and announce a distribution partner for our Endostapler. In addition we shall be announcing the clinical data on the EU post marketing study for our AAA stent grafts and receive the initial feedback from the US clinical trials that we will be beginning in the first half of this year. Brian Howlett Chief Executive Officer Finance Director's Report Turnover Turnover consisted entirely of sales of AorfixTM which rose over fourfold to #169,000 (2004: #40,000). Sales growth reflected the Company's focus on the establishment of reference centres for the implantation of AorfixTM as the first phase of its commercialisation strategy. In 2006 the Company moves into the next phase of its commercialisation strategy, aided by the funds from the IPO to invest in sales and marketing infrastructure. The majority of sales were to European distributors with those to the Greek and Irish distributors, which together represented over 50% of sales, being particularly encouraging. Gross profit Gross profit for the year was #82,000 (2004: #24,000). The gross margin of 48.5% (2004: 60%) reflected the high proportion of sales to distributors, the relatively low volumes and discounts given to new customers. Operating expenses before goodwill amortisation and exceptional items Operating expenses before goodwill amortisation and exceptional items rose by #2.7 million to #6.8 million (2004: #4.1 million). Increased investment in R&D to #3.2 million (2004: #1.8 million) and a step change in sales and marketing costs to #0.9 million (2004: #0.3 million) accounted for the majority of the increase with the remainder coming from an increase in general and administration costs to #2.7 million (2004: 2.0 million). Exceptional items A breakdown of the exceptional charges for the year is detailed below. #m Corporate finance and associated corporate advisory expenses 0.5 Bank facility forbearance and arrangement fees 0.6 Board and other restructuring costs 0.7 _____ 1.8 _____ Whilst costs of #2.0 million directly related to the IPO and associated placing have been set against the share premium account, other costs linked to the IPO and preference share issues but not directly related to these fund raisings, such as those for market research and advice given on running a public company, have been included in the profit and loss account as an exceptional item. Prior to the IPO the Company's financial position was uncertain and the Company was dependent upon the support of its bank for its continued operation. Overdraft and other fees related to this continued support totalled #0.6 million. In November 2005, Stephen Terry and John Kerslake resigned from the Board. Their compensation for loss of office totalling #0.5 million is included as an exceptional item along with the termination costs of several sales force personnel. Goodwill amortisation and impairment charges Goodwill amortisation was #1.3 million (2004: #0.7 million). The Company has shareholdings in two unquoted medical device companies, Endoart SA and Vascular Concepts Holdings Limited. In 2004, the book value of the Company's investment in Endoart SA was written-down by #0.9 million so that the value per share of the Company's holding equalled that of new equity being issued by Endoart SA. No further impairment was considered necessary in 2005. Net interest payable Net interest payable in the year was #2.0 million including preference share dividends and appropriations in accordance with FRS 25. The same costs and appropriations in 2004 totalled #1.7 million. The increase of #0.3 million was primarily due to a higher average number of preference shares in issue in 2005. Taxation The R&D tax credits recoverable are only recorded on receipt of confirmation of our claim. The 2004 accounts include an R&D tax credit recoverable of #0.2 million in respect of 2003. No confirmation has been received in relation to R& D tax credits for 2004 and hence there is no such credit in the 2005 accounts. Loss for the financial year The loss for the financial year was #11.7 million (2004: #8.0 million). The increase of #3.7 million was principally due to higher operating costs, exceptional charges, goodwill and net interest payable partially offset by the reduction in impairment charge. Capital expenditure and financial investment Capital expenditure and financial investments in the year of #0.7 million (2004: #0.2 million) included a #0.2 million investment in Endoart SA and the purchase of various patents and intellectual property relating to AorfixTM from Pearsalls Sutures, a division of Bridport (UK) Limited, for #0.4 million. Operating cash flow Net cash outflow before financing for the year rose by #3.8 million to #8.6 million (2004: #4.8 million) primarily due to: the increased loss for the financial year; higher fixed asset investments; the decrease in non-cash charges (depreciation, amortisation and impairments); partially offset by decreases in working capital and higher tax receipts. As at December 2005 LMT had cash and short-term deposits of #16.3 million. Financing and share restructuring The Company successfully raised a total of #30.9 million before expenses in 2005 of which #3.1 million came from an issue of convertible preference shares in October, #1.6 million from an issue of ordinary shares to Camden Partners at the time of the flotation and #26.2 million on flotation through the placing of 16.5 million ordinary shares at a price of 159 pence per share. Expenses related to these share issues totalled #2.7 million. Following flotation loans and overdrafts totalling #6 million were repaid. Further to resolutions passed at the Extraordinary General Meeting held on 5 December 2005 all Convertible Preference Shares of 1 pence each were subdivided and converted into an Ordinary Share of 0.138 pence and a Deferred Share. Subsequently all Ordinary Shares of 0.138 pence each were consolidated and subdivided into new Ordinary Shares of 2 pence each. The Deferred Shares have no economic value and will be cancelled in due course. Loss per share The net loss per share, based on an average of 7.9 million shares in issue during the year, was 148.4 pence, an increase of 5% over the previous year (2004: 140.8 pence). Post balance sheet event On 28 February 2006 at an Extraordinary General Meeting of LMT's 94.4% owned subsidiary Lombard Medical Plc, a special resolution was passed for the company to be voluntarily wound up. Lombard Medical Plc has not traded since September 2004 when its business and assets were sold to LMT for #25.1 million. The consideration was satisfied by way of an intra-group loan that became repayable on demand following LMT's flotation. A members' voluntary liquidation of Lombard Medical Plc is the most cost-effective method of distributing the minority shareholders' interest in the remaining assets of the company. Tim Hall Finance Director Consolidated Profit and Loss Account for the year ended 31 December 2005 2005 2004 Note #'000 #'000 _____ _____ _____ Turnover 2 169 40 Cost of sales (87) (16) _____ _____ _____ Gross profit 82 24 Development and administrative expenses (inc. exceptional items) (9,866) (5,675) _____ _____ _____ Operating loss before exceptional items & goodwill amortisation (6,749) (4,077) Exceptional items 3 (1,754) (887) Amortisation of goodwill (1,281) (687) _____ _____ _____ Operating loss 4 (9,784) (5,651) Impairment of investments - (868) Net interest payable and similar charges 5 (1,949) (476) _____ _____ _____ Loss on ordinary activities (11,733) (6,995) Taxation on loss on ordinary activities 6 - 209 _____ _____ _____ Loss after taxation (11,733) (6,786) Non equity dividends and appropriations 7 - (1,178) _____ _____ _____ Loss for the financial year (11,733) (7,964) _____ _____ _____ Basic and diluted loss per share (pence) 8 (148.4) (140.8) _____ _____ _____ All activity relates to continuing operations. The Group has no recognised gains and losses other than the loss above and therefore no separate statement of total recognised gains and losses has been presented. There is no difference between the loss on ordinary activities before taxation and the loss for the financial year stated above, and their historical cost equivalents. Following the adoption of FRS25 "Financial instruments: disclosures and presentation" from 1 January 2005 preference share appropriations have been represented as part of interest payable. The comparative figures have not been restated as permitted by FRS 25. Consolidated Balance Sheet as at 31 December 2005 2005 2004 Note #'000 #'000 _____ _____ _____ Fixed assets Intangible assets 2,215 2,659 Tangible assets 301 343 Investments - unquoted 2,825 2,595 _____ _____ _____ 5,341 5,597 _____ _____ _____ Current assets Stocks 318 147 Debtors 475 417 Cash at bank and in hand 10 16,342 20 _____ _____ _____ 17,135 584 Creditors: amounts falling due within one year (2,893) (5,522) _____ _____ _____ Net current assets/(liabilities) 14,242 (4,938) _____ _____ _____ Net assets 19,583 659 _____ _____ _____ Capital and reserves Called up share capital 4,201 3,270 Share premium account 25,420 6,207 Other reserve 11,118 - Profit and loss account (22,976) (10,230) _____ _____ _____ Shareholders' funds/(deficit) 11 17,763 (753) Equity minority interests 1,820 1,412 _____ _____ _____ Capital employed 19,583 659 _____ _____ _____ Analysis of shareholders' funds/(deficit): Equity shareholders' funds/(deficit) 17,763 (11,129) Non-equity shareholders' funds - 10,376 _____ _____ _____ 17,763 (753) _____ _____ _____ Consolidated Cash Flow Statement for the year ended 31 December 2005 2005 2004 Note #'000 #'000 _____ _____ _____ Net cash outflow from operating activities 9 (7,637) (4,317) _____ _____ _____ Returns on investment and servicing of finance Interest received 49 17 Interest paid (452) (265) _____ _____ _____ Net cash outflows from returns on investments and servicing of (403) (248) finance _____ _____ _____ Taxation received 209 - _____ _____ _____ Capital expenditure and financial investment Purchase of investments (231) - Purchase of intangible fixed assets (423) - Purchase of tangible fixed assets (94) (188) _____ _____ _____ Net cash outflow from capital expenditure and financial (748) (188) investment _____ _____ _____ Acquisitions and disposals Disposal of subsidiary undertakings - (60) _____ _____ _____ Net cash outflows from acquisitions and disposals - (60) _____ _____ _____ Net cash outflow before financing (8,579) (4,813) _____ _____ _____ Financing Issue of ordinary shares 26,181 - Issue of preference shares 3,150 4,656 Share issue expenses (2,121) (549) Loans advanced 1,550 - Repayment of loans (3,342) - _____ _____ _____ Net cash inflow from financing 25,418 4,107 _____ _____ _____ Increase/(decrease) in cash in the period 16,839 (706) _____ _____ _____ Notes to the Financial Statements for the year ended 31 December 2005 1. Basis of preparation The financial information for 2004 has been extracted from the statutory accounts for the year ended 31 December 2004, which have been delivered to the registrar of companies. The auditors' report on those accounts was unqualified and did not contain any statement under section 237(2) or (3) of the Companies Act 1985. The financial information for 2005 presented by the directors in this statement is derived from the statutory accounts for 2005. The accounts have been audited and the audit report is unqualified and does not contain a statement under section 237(2) or (3) of the Companies Act. The accounts will be delivered to the registrar of companies following the Company's annual general meeting on 9 May 2006. 2. Segmental Reporting 2005 2004 Business analysis #'000 #'000 _____ _____ Turnover Cardiovascular devices 169 40 Polymer coatings - - _____ _____ 169 40 _____ _____ Loss before tax Cardiovascular devices (5,561) (2,945) Polymer coatings (576) (512) Central costs (3,647) (2,194) _____ _____ Operating loss (9,784) (5,651) Amounts written off investments - (868) Net finance cost (1,949) (476) _____ _____ (11,733) (6,995) _____ _____ Net Assets Cardiovascular devices 1,823 2,193 Polymer coatings 241 314 _____ _____ 2,064 2,507 Central 1,177 1,991 Net cash/(debt) 16,342 (3,839) _____ _____ 19,583 659 _____ _____ Central net assets comprise assets, partially offset by liabilities that cannot practically be divided between the segments. Analyses by business are based on the Group's management structure. Turnover between segments is immaterial. All turnover and activity arises in the United Kingdom. Geographical analysis based on the country in which the customer is located is as follows: 2005 2004 Turnover by destination #'000 #'000 _____ _____ United Kingdom and Europe 160 13 United States of America 9 27 _____ _____ 169 40 _____ _____ 3. Exceptional Items 2005 2004 #'000 #'000 _____ _____ Corporate finance and associated corporate advisory expenses (470) (887) Bank facility forebearance and arrangement fees (555) - Board and other restructuring costs (729) - _____ _____ (1,754) (887) _____ _____ On 13 December 2005 the Company was listed on AIM. There was an associated placing of 16,466,359 new ordinary shares at the time of the listing. Costs directly related to the fund raising such as those of the Company's Nominated Advisor and Broker have been set against the share premium account. However, costs relating to advice given on running a public company, market research and other costs linked to the IPO but not directly related to the fund raising are included in the profit and loss account as an exceptional item along with bank fees related to the bank's continued support during the period up to receipt of the placing proceeds. In November 2005, Stephen Terry and John Kerslake resigned from the Board. Their compensation for loss of office is included as an exceptional item along with the termination costs of several sales force personnel. 4. Operating Loss 2005 2004 #'000 #'000 _____ _____ Operating loss is stated after charging: Depreciation of tangible fixed assets 136 235 Amortisation of licences 35 9 Amortisation of goodwill (note 10) 1,281 687 Research and development expenditure 3,157 1,798 Operating lease rentals - Motor vehicles 22 52 - Land and buildings 207 158 - Other assets 8 5 Auditors' remuneration 35 31 _____ _____ 5. Net Interest Payable and Similar Charges 2005 2004 #'000 #'000 _____ _____ Interest receivable Interest receivable on bank deposits 49 17 _____ _____ Interest payable and related expenses Bank interest payable (188) (346) Camden Partners loan interest (124) - Lion Capital Partners loan interest (141) (124) Other interest payable - (9) Minority share of interest payable intra-group (56) (14) Preference shares: Dividend at 8% on amount paid up (912) - Appropriations (577) - _____ _____ (1,998) (493) _____ _____ Net interest payable and similar charges (1,949) (476) _____ _____ 6. Taxation on Loss on Ordinary Activities The credit of #209,000 in 2004 relates to the utilisation of tax losses from research and development expenditure to reclaim payroll taxes paid. Taxation losses carried forward at the end of the year amounted to approximately #23 million and the unrecognised deferred tax asset at 30% is approximately #6.9 million. No deferred tax asset has been recognised in respect of these losses as the directors consider it is, as yet, uncertain whether the losses will be utilised. Tax losses would be utilised in future periods against trading profits or the reclaiming of payroll taxes (at a lower effective rate). The current tax credit of #nil is lower than the standard UK corporation rate of 30% applied to the loss for the period. The differences are explained below: 2005 2004 #'000 #'000 _____ _____ Loss before tax for the period at 30% (3,520) (2,099) Additional deduction for research and development expenditure (200) (100) Amounts not deductible for tax purposes including amortisation of goodwill 1,030 759 and preference share dividends Losses carried forward 2,690 1,440 _____ _____ - - _____ _____ 7. Non-Equity Dividends and Appropriations 2005 2004 #'000 #'000 _____ _____ Preference shares Dividend at 8% per annum on paid up amount - (612) Appropriations - (566) _____ _____ - (1,178) _____ _____ Under FRS25 these charges are presented as an interest expense for the year ended 31 December 2005 and as non-equity dividends payable for the year ended 31 December 2004. 8. Loss per Share The Company applied FRS22 "Earnings per share" for the year ended 31 December 2005 and has prepared comparatives on a consistent basis. Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares. The diluted earnings per ordinary share are identical to those used for the basic earnings per ordinary share as the exercise of share options and conversion of preference shares would have had the effect of reducing the loss per ordinary share and are therefore not dilutive. The losses and weighted average number of shares used on the calculations are set out below: 2005 2004 #'000 #'000 _____ _____ Loss after taxation (11,733) (6,786) Less preference dividends and appropriations - (1,178) _____ _____ Loss attributable to ordinary shareholders (11,733) (7,964) _____ _____ Weighted average number of shares ('000) 7,906 5,655 _____ _____ Basic and diluted loss per share (pence) (148.4) (140.8) _____ _____ 9. Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities 2005 2004 #'000 #'000 _____ _____ Operating loss (9,784) (5,651) Amortisation of goodwill 1,281 687 Depreciation and amortisation of licences 171 244 Increase in stocks (171) (144) Increase in debtors (267) (67) Increase in creditors 1,133 614 _____ _____ Net cash outflow from operating activities (7,637) (4,317) _____ _____ 10. Analysis of Net Cash/(Debt) Reclassification 31 December under FRS25 & Cash 2004 appropriations movements #'000 #'000 #'000 _____ _____ _____ Cash at bank and in hand 20 - 16,322 Bank overdraft (517) - 517 Bank loan (1,400) - 1,400 Loans (1,942) - 392 Preference share liabilities - (11,707) (2,992) _____ _____ _____ (3,839) (11,707) 15,639 _____ _____ _____ Continued from table above Non cash movements 31 December 2005 _____ _____ #'000 #'000 _____ _____ Cash at bank and in hand - 16,342 Bank overdraft - - Bank loan - - Loans 1,550 - Preference share liabilities 14,699 - _____ _____ 16,249 16,342 _____ _____ 11. Reconciliation of Movements in Group Shareholders' Funds 2005 2004 #'000 #'000 _____ _____ Loss for the financial period (11,733) (7,964) Dividends credited to reserves - 865 Cash dividend retained - 426 Reclassification of preference share interests as liabilities under FRS25 (10,376) - Conversion of preference shares and loan to ordinary shares 16,250 - Warrant reserve created 158 - New share capital issued, including premium 26,181 4,656 Expenses of share issues (1,964) (549) _____ _____ Net change in shareholders' funds 18,516 (2,566) Opening shareholders' (deficit)/funds (753) 1,813 _____ _____ Closing shareholders' funds/(deficit) 17,763 (753) _____ _____ 12. Post Balance Sheet Events The Company's dormant subsidiary Lombard Medical Plc was put into Members' Voluntary Liquidation with effect from 28 February 2006. The reason for this was to allow the minority shareholders to receive their share of the proceeds of #25.1 million from the sale of Lombard Medical Plc's assets and business to Lombard Medical Technologies PLC in September 2004. This information is provided by RNS The company news service from the London Stock Exchange END FR SELFUFSMSEDD_SN_RNS1703A_SU_RNSTEST_XX_070130.0233_RZ__RT_R.xRoute.001 ~
1 Year Lombard Medical Technologies Chart |
1 Month Lombard Medical Technologies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions