Interim Results

 

TIDMMLH 
 
RNS Number : 2660Z 
Medical House PLC 
18 September 2009 
 
? 
+----------------------------------------+----------------------------------------+ 
| For Immediate Release                  |                    18th September 2009 | 
+----------------------------------------+----------------------------------------+ 
 
 
 
 
The Medical House PLC ("Medical House" or the "Company") 
 
 
Interim results for the six months ended 30th June 2009 
 
 
 
The Medical House PLC (AIM: MLH), the drug delivery specialist, announces its 
interim results for the six months ended 30th June 2009. 
 
 
 
 
Period Highlights: 
 
 
  *  Operating profit up 76% at GBP604,000 (2008:GBP342,000) 
 
  *  Sales up 32% at GBP1.884m (2008:GBP1.422m) 
 
  *  Launch of cool.clickTM 2 needle-free injector system by Merck Serono drives 
  sales and profit growth 
 
  *  Next ASITM autoinjector product being developed for Dr Reddy's Laboratories 
  anticipated to be market ready within the coming 6 months 
 
  *  More product launches to follow 
 
  *  Second half trading in line with expectations 
 
 
 
Ian Townsend, Chairman, The Medical House, said: 
 
 
"Interest in our technologies which cover delivery of a wide range of injectable 
drugs, continues to be strong, including for those drugs in dry formulations 
which require reconstitution prior to injection. We are confident that we will 
continue to sign further agreements." 
 
 
 
 
For further information: 
 
 
+----------------------------------------------+---------------------------+ 
| The Medical House PLC                        |                           | 
+----------------------------------------------+---------------------------+ 
| Ian Townsend, Chairman                       |        Tel: [phone] | 
| Bryan Bodek, Deputy Chairman                 |                           | 
| David Urquhart, Managing Director            |                           | 
+----------------------------------------------+---------------------------+ 
|                                              |   www.themedicalhouse.com | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Buchanan Communications                      |                           | 
+----------------------------------------------+---------------------------+ 
| Tim Anderson/ Stasa Filiplic                 |        Tel: [phone] | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| Nomura Code Securities Limited               |                           | 
+----------------------------------------------+---------------------------+ 
| Wolf Dornbusch                               |        Tel: [phone] | 
+----------------------------------------------+---------------------------+ 
|                                              |                           | 
+----------------------------------------------+---------------------------+ 
| FinnCap                                      |                           | 
+----------------------------------------------+---------------------------+ 
| Stephen Norcross                             |        Tel: [phone] | 
+----------------------------------------------+---------------------------+ 
 
 
 
Chairman's Statement 
 
 
For the six months ended 30th June 2009 
 
 
I am pleased to report an operating profit of GBP604,000 (GBP342,000: 2008) for 
the six months ended 30th June 2009. Sales in the period were up by GBP462,000 
to GBP1,884,000 (GBP1,422,000: 2008). 
 
 
The increase in both sales (32%) and operating profit (76%) are largely due to 
the impact of the US commercial launch on 1st July 2009 of the cool.click(TM)2 
needle-free injector system by our licensees, Merck Serono. The supply of 
cool.click(TM)2 launch stocks to Merck Serono will also have an impact in the 
second half as cool.click(TM)2 is rolled out in other territories. 
cool.click(TM)2 is an advanced needle-free injector system which incorporates 
novel features, such as electronic dose measurement and display. The launch of 
cool.click(TM)2 means that our live development projects all relate to our ASITM 
disposable autoinjector technology. 
 
 
The first of these projects scheduled for commercial launch is the ASITM 
autoinjector device being developed for Dr Reddy's Laboratories. This project is 
progressing satisfactorily however, like all new project development, the 
project has had its fair share of challenges. As with any drug product timing of 
the launch will depend on regulatory approvals which are difficult to predict 
with any certainty. Currently, we are led to believe that the product should be 
ready for market within the coming 6 months. 
 
 
The next ASITM autoinjector launch is expected to be that of our unnamed 
pharmaceutical company partner, which announced earlier this year that it has 
received regulatory approval for the drug which will be used with our technology 
in one of their principal marketing territories. Use of the drug in combination 
with our device still remains subject to approval as a combination product. 
 
 
Following behind this will be the project we are working on with Catalent and 
Stallergenes to develop an emergency epinephrine autoinjector for the European 
market. This project is currently proceeding to plan. 
 
 
Interest in our technologies, which cover delivery of a wide range of injectable 
drugs, continues to be strong, including for those drugs in dry formulations 
that require reconstitution prior to injection. We are confident that we will 
continue to sign further agreements. 
 
 
I wish to place on record my thanks to all my colleagues at The Medical House, 
without whose dedication and commitment these results would not have been 
achieved. 
 
 
Prospects 
 
 
The second half of the year is trading in line with our expectations 
 
 
 
 
 
 
 
 
Ian Townsend 
 
 
Executive Chairman 
 
 
17 September 2009 
 
Responsibility statement of the directors in respect of the consolidated 
financial statements 
 
 
On 12 August 2009 the Group announced it was in early discussions that may or 
may not lead to an offer being made for the Group. Having regard to these 
discussions and the requirements of the Panel on Takeovers and Mergers, the 
Group has voluntarily chosen to comply with the reporting requirements as set 
out in IAS 34 Interim Financial Reporting and the appropriate sections of the 
Disclosure and Transparency Rules. 
 
 
We confirm that to the best of our knowledge: 
 
 
  *  The set of financial statements has been prepared in accordance with IAS 34 
  Interim Financial Reporting as adopted by the EU. 
 
  *  The interim review report includes a fair review of the information required by 
  DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of 
  important events that have occurred during the first six months of the financial 
  year and their impact on the set of financial statements. 
 
 
 
 
 
By order of the Board 
 
 
 
 
 
 
 
 
 
 
 
 
Ian Townsend   Margaret Scott 
 
 
Executive Chairman 
          Company Secretary 
 
 
17 September 2009 
          17 September 2009 
 
 
  Independent review report to The Medical House PLC 
 
 
Introduction 
 
 
We have been engaged by the Company to review the set of financial statements in 
the Interim Review Report for the six months ended 30 June 2009 which comprises 
the consolidated interim income statement, the consolidated interim statement of 
comprehensive income, the consolidated interim statement of changes in equity, 
the consolidated interim balance sheet, the consolidated interim statement of 
cash flows, and the related explanatory notes. We have read the other 
information contained in the Interim Review Report and considered whether it 
contains any apparent misstatements or material inconsistencies with the 
information in the set of financial statements. 
 
 
This report is made solely to the Company in accordance with the terms of our 
engagement. Our review has been undertaken so that we might state to the Company 
those matters we are required to state to it in this report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company for our review work, for this 
report, or for the conclusions we have reached. 
 
 
Directors' responsibilities 
 
 
The Interim Review Report is the responsibility of, and has been approved by, 
the directors. The directors are responsible for preparing the Interim Review 
Report in accordance with the AIM Rules. 
 
 
As disclosed in note 2, the annual financial statements of the group are 
prepared in accordance with IFRSs as adopted by the EU. The set of financial 
statements included in this Interim Review Report has been prepared in 
accordance with IAS 34 Interim Financial Reporting as adopted by the EU. 
 
 
Our responsibility 
 
 
Our responsibility is to express to the Company a conclusion on the set of 
financial statements in the Interim Review Report based on our review. 
 
 
Scope of review 
 
 
We conducted our review in accordance with International Standard on Review 
Engagements (UK and Ireland) 2410 Review of Interim Financial Information 
Performed by the Independent Auditor of the Entity issued by the Auditing 
Practices Board for use in the UK. A review of interim financial information 
consists of making enquiries, primarily of persons responsible for financial and 
accounting matters, and applying analytical and other review procedures. A 
review is substantially less in scope than an audit conducted in accordance with 
International Standards on Auditing (UK and Ireland) and consequently does not 
enable us to obtain assurance that we would become aware of all significant 
matters that might be identified in an audit. Accordingly, we do not express an 
audit opinion. 
 
 
Whilst the company has previously produced an interim review report, that report 
has not previously been subject to an interim review. As a consequence, the 
review procedures set out above have not been performed in respect of the 
comparative period for the six months ended 30 June 2008. 
 
 
Conclusion 
 
 
Based on our review, nothing has come to our attention that causes us to believe 
that the set of financial statements in the Interim Review Report for the six 
months ended 30 June 2009 is not prepared, in all material respects, in 
accordance with IAS 34 as adopted by the EU and the AIM Rules. 
 
 
AJ Stone (Senior statutory auditor) 
 
 
For and on behalf of KPMG Audit Plc (Statutory auditor) 
Chartered Accountants, Leeds 
17 September 2009 
 
 
 
 
 
 
+---------------------------------------------------+------------+-----------+------------+ 
| Unaudited Consolidated Interim Income Statement   |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| For the six months ended 30th June 2009           |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |  Unaudited | Unaudited |    Audited | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   | Six months |       Six |     Twelve | 
|                                                   |            |    months |     months | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |     ended  |   ended   |    ended   | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   | 30th June  |      30th |       31st | 
|                                                   |            |      June |   December | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |       2009 |      2008 |       2008 | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |     GBP000 |    GBP000 |     GBP000 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Revenue                                           |      1,884 |     1,422 |      2,933 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Cost of sales                                     |      (294) |      (42) |       (73) | 
+---------------------------------------------------+------------+-----------+------------+ 
| Gross profit                                      |      1,590 |     1,380 |      2,860 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Other income                                      |         14 |         - |         31 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Net income from operations                        |      1,604 |     1,380 |      2,891 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Administrative expenses                           |    (1,000) |   (1,038) |    (2,171) | 
+---------------------------------------------------+------------+-----------+------------+ 
| Operating profit                                  |        604 |       342 |        720 | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Analysis of operating profit                      |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Operating profit before exceptional items         |        604 |       375 |        768 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Other exceptional costs                           |          - |      (33) |       (48) | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |        604 |       342 |        720 | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Financing expense                                 |       (19) |      (23) |       (39) | 
+---------------------------------------------------+------------+-----------+------------+ 
| Profit before income taxation                     |        585 |       319 |        681 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Income tax                                        |       (89) |     (103) |      (228) | 
+---------------------------------------------------+------------+-----------+------------+ 
| Profit from continuing operations                 |        496 |       216 |        453 | 
+---------------------------------------------------+------------+-----------+------------+ 
| Discontinued operation                            |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Loss from discontinued operation (net of income   |          - |     (317) |      (389) | 
| tax)                                              |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Profit / (loss) for the period attributable to    |        496 |     (101) |         64 | 
| the equity shareholders of the parent             |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
|                                                   |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Earnings per share                                |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Basic profit / (loss) per ordinary share on total |      0.83p |   (0.17p) |      0.11p | 
| operations                                        |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Diluted profit/ (loss) per ordinary share on      |      0.79p |   (0.17p) |      0.11p | 
| total operations                                  |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Basic profit per ordinary share - continuing      |      0.83p |     0.36p |      0.75p | 
| operations                                        |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
| Diluted profit per ordinary share - continuing    |      0.79p |     0.36p |      0.75p | 
| operations                                        |            |           |            | 
+---------------------------------------------------+------------+-----------+------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
               Unaudited Consolidated Interim Statement of Comprehensive Income 
+---------------+-----------+-----------+------------+ 
| For the       |           |           |            | 
| 6 months      |           |           |            | 
| ended         |           |           |            | 
| 30th          |           |           |            | 
| June          |           |           |            | 
| 2009          |           |           |            | 
+---------------+-----------+-----------+------------+ 
|               | Unaudited | Unaudited |    Audited | 
+---------------+-----------+-----------+------------+ 
|               |      30th |      30th |       31st | 
|               |      June |      June |   December | 
+---------------+-----------+-----------+------------+ 
|               |      2009 |      2008 |       2008 | 
+---------------+-----------+-----------+------------+ 
|               |    GBP000 |    GBP000 |     GBP000 | 
+---------------+-----------+-----------+------------+ 
|               |           |           |            | 
+---------------+-----------+-----------+------------+ 
| Profit /      |       496 |     (101) |         64 | 
| (loss)        |           |           |            | 
| for the       |           |           |            | 
| year          |           |           |            | 
+---------------+-----------+-----------+------------+ 
|               |           |           |            | 
+---------------+-----------+-----------+------------+ 
| Share-based   |      (10) |       (8) |        (8) | 
| payments      |           |           |            | 
+---------------+-----------+-----------+------------+ 
|               |           |           |            | 
+---------------+-----------+-----------+------------+ 
| Other         |      (10) |       (8) |        (8) | 
| comprehensive |           |           |            | 
| income for    |           |           |            | 
| the year, net |           |           |            | 
| of income tax |           |           |            | 
+---------------+-----------+-----------+------------+ 
|               |           |           |            | 
+---------------+-----------+-----------+------------+ 
| Total         |       486 |     (109) |         56 | 
| Comprehensive |           |           |            | 
| Income for    |           |           |            | 
| the Year      |           |           |            | 
+---------------+-----------+-----------+------------+ 
 
 
 
 
 
 
Unaudited Consolidated Interim Statement of Changes in Equity 
 
 
 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |   Issued |   Share |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |    share | premium | Retained |      Other |    Total | 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |  capital | account | earnings |   reserves |   equity | 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |   GBP000 |  GBP000 |   GBP000 |     GBP000 |   GBP000 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Balance at 1 January 2008      |      601 |   7,353 |  (6,528) |        487 |    1,913 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Total comprehensive income for |          |         |          |            |          | 
| the period                     |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| (Loss) for the period          |        - |       - |    (101) |          - |    (101) | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Other comprehensive income     |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Share-based payments           |        - |       - |      (8) |          - |      (8) | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Balance at 30 June 2008        |      601 |   7,353 |  (6,637) |        487 |    1,804 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Balance at 1 January 2008      |      601 |   7,353 |  (6,528) |        487 |    1,913 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Total comprehensive income for |          |         |          |            |          | 
| the period                     |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Profit for the period          |        - |       - |       64 |          - |       64 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Other comprehensive income     |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Share-based payments           |        - |       - |      (8) |          - |      (8) | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Balance at 31 December 2008    |      601 |   7,353 |  (6,472) |        487 |    1,969 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
|                                |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Balance at 1 January 2009      |      601 |   7,353 |  (6,472) |        487 |    1,969 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Total comprehensive income for |          |         |          |            |          | 
| the period                     |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Profit for the period          |        - |       - |      496 |          - |      496 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Other comprehensive income     |          |         |          |            |          | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Share-based payments           |        - |       - |     (10) |          - |     (10) | 
+--------------------------------+----------+---------+----------+------------+----------+ 
| Balance at 30 June 2009        |      601 |   7,353 |  (5,986) |        487 |    2,455 | 
+--------------------------------+----------+---------+----------+------------+----------+ 
 
 
     Other reserves relate to negative goodwill previously written-off on 
consolidation (GBP486,000) and differences on 
 

    consolidation under 
merger accounting (GBP1,000). 
 
+---------------------------------------------------+------------+------------+------------+ 
| Unaudited Consolidated Interim Balance Sheet      |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
| As at 30th June 2009                              |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
|                                                   |  Unaudited |  Unaudited |    Audited | 
+---------------------------------------------------+------------+------------+------------+ 
|                                                   |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
|                                                   |  30th June | 30th June  |       31st | 
|                                                   |       2009 |       2008 |   December | 
|                                                   |            |            |       2008 | 
+---------------------------------------------------+------------+------------+------------+ 
|                                                   |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
|                                                   |     GBP000 |     GBP000 |     GBP000 | 
+---------------------------------------------------+------------+------------+------------+ 
| Assets                                            |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
| Property, plant and equipment                     |        716 |        319 |        749 | 
+---------------------------------------------------+------------+------------+------------+ 
| Intangible assets                                 |      2,352 |      2,066 |      2,195 | 
+---------------------------------------------------+------------+------------+------------+ 
| Deferred tax assets                               |        471 |        668 |        560 | 
+---------------------------------------------------+------------+------------+------------+ 
| Total non-current assets                          |      3,539 |      3,053 |      3,504 | 
+---------------------------------------------------+------------+------------+------------+ 
| Inventories                                       |        216 |         80 |         91 | 
+---------------------------------------------------+------------+------------+------------+ 
| Trade and other receivables                       |        895 |      1,273 |        704 | 
+---------------------------------------------------+------------+------------+------------+ 
| Prepayments                                       |        138 |        108 |        178 | 
+---------------------------------------------------+------------+------------+------------+ 
| Corporation tax receivable                        |          4 |         48 |          7 | 
+---------------------------------------------------+------------+------------+------------+ 
| Asset held for resale                             |          - |        380 |          - | 
+---------------------------------------------------+------------+------------+------------+ 
| Total current assets                              |      1,253 |      1,889 |        980 | 
+---------------------------------------------------+------------+------------+------------+ 
| Total assets                                      |      4,792 |      4,942 |      4,484 | 
+---------------------------------------------------+------------+------------+------------+ 
| Liabilities                                       |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
| Finance leases                                    |         28 |         77 |         55 | 
+---------------------------------------------------+------------+------------+------------+ 
| Deferred income                                   |         68 |        500 |        158 | 
+---------------------------------------------------+------------+------------+------------+ 
| Total non-current liabilities                     |         96 |        577 |        213 | 
+---------------------------------------------------+------------+------------+------------+ 
| Bank overdraft                                    |        539 |        284 |        170 | 
+---------------------------------------------------+------------+------------+------------+ 
| Finance leases                                    |         33 |         49 |         41 | 
+---------------------------------------------------+------------+------------+------------+ 
| Trade and other payables                          |        495 |        387 |        530 | 
+---------------------------------------------------+------------+------------+------------+ 
| Deferred income                                   |        680 |      1,500 |      1,430 | 
+---------------------------------------------------+------------+------------+------------+ 
| Accruals                                          |        494 |        341 |        131 | 
+---------------------------------------------------+------------+------------+------------+ 
| Total current liabilities                         |      2,241 |      2,561 |      2,302 | 
+---------------------------------------------------+------------+------------+------------+ 
| Total liabilities                                 |      2,337 |      3,138 |      2,515 | 
+---------------------------------------------------+------------+------------+------------+ 
| Equity                                            |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
| Issued share capital                              |        601 |        601 |        601 | 
+---------------------------------------------------+------------+------------+------------+ 
| Share premium account                             |      7,353 |      7,353 |      7,353 | 
+---------------------------------------------------+------------+------------+------------+ 
| Other reserves                                    |        487 |        487 |        487 | 
+---------------------------------------------------+------------+------------+------------+ 
| Retained earnings                                 |    (5,986) |    (6,637) |    (6,472) | 
+---------------------------------------------------+------------+------------+------------+ 
| Equity shareholders funds                         |      2,455 |      1,804 |      1,969 | 
+---------------------------------------------------+------------+------------+------------+ 
|                                                   |            |            |            | 
+---------------------------------------------------+------------+------------+------------+ 
| Total equity and liabilities                      |      4,792 |      4,942 |      4,484 | 
+---------------------------------------------------+------------+------------+------------+ 
 
 
 
 
 
 
+------------------------------------------------------+-----------+-----------+------------+ 
| Unaudited Consolidated Interim Cash Flow Statement   | Unaudited | Unaudited |    Audited | 
+------------------------------------------------------+-----------+-----------+------------+ 
| For the six months ended 30 June 2009                |       Six |       Six |     Twelve | 
|                                                      |    months |    months |     months | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |    ended  |     ended |     ended  | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |      30th |      30th |       31st | 
|                                                      |      June |      June |   December | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |     2009  |      2008 |       2008 | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |    GBP000 |    GBP000 |     GBP000 | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Cash flow from operating activities                  |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Profit / (loss) for the period                       |       496 |     (101) |         64 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Adjustments for:                                     |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Depreciation                                         |        50 |        35 |         95 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Impairment of intangible assets                      |        95 |         - |        135 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Finance costs                                        |        19 |        23 |         39 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| (Gain) / loss on sale of property, plant and         |       (5) |         6 |          1 | 
| equipment                                            |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Loss on disposal of discontinued operations          |         - |       317 |        236 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Deferred tax provision                               |        89 |        92 |        200 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Share based payments                                 |        10 |       (8) |       (11) | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |       754 |       364 |        759 | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Change in inventories                                |     (125) |         7 |        (4) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Change in trade and other receivables                |     (188) |       444 |      1,042 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Change in prepayments                                |        40 |        61 |        (9) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Change in trade and other payables                   |       278 |     (499) |        177 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Change in deferred income                            |     (840) |     (750) |    (1,162) | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |     (835) |     (737) |         44 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Interest paid                                        |      (19) |      (23) |       (39) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Net cash movement from operating activities          |     (100) |     (396) |        764 | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Cash flows from investing activities                 |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Proceeds from sale of property, plant and equipment  |        17 |        51 |         36 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Purchase of property, plant and equipment            |      (15) |      (74) |      (198) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Overdraft and debt disposed of with subsidiary       |         - |       680 |          - | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Capitalised development expenditure                  |     (252) |     (159) |      (423) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Cash movement in investing activities                |     (250) |       498 |      (585) | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Cash flows from financing activities                 |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| New finance leases                                   |        -  |         - |         99 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Repayment of principal on hire purchase loans        |      (19) |      (21) |       (83) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Cash movement in financing activities                |      (19) |      (21) |         16 | 
+------------------------------------------------------+-----------+-----------+------------+ 
| (Decrease) / increase in cash in the period          |     (369) |        81 |        195 | 
+------------------------------------------------------+-----------+-----------+------------+ 
|                                                      |           |           |            | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Opening cash and cash equivalents                    |     (170) |     (365) |      (365) | 
+------------------------------------------------------+-----------+-----------+------------+ 
| Closing cash and cash equivalents                    |     (539) |     (284) |      (170) | 
+------------------------------------------------------+-----------+-----------+------------+ 
 
 
  Notes 
 
 
1. Reporting entity 
 
 
The Medical House PLC ("the Company") is a company domiciled in the United 
Kingdom. The Financial Statements for the half-year ended 30 June 2009 comprise 
the Company and its subsidiaries (together referred to as the "Group"). 
 
 
2. Basis of preparation 
 
 
The consolidated financial statements for the six months ended 30 June 2009 are 
unaudited but have been reviewed by the auditors. The consolidated financial 
statements for the six months ended 30 June 2009 were approved by the directors 
on 17 September 2009. The comparative figures for the financial year ended 31 
December 2008 are not the Group's statutory accounts for that financial year. 
Those accounts have been reported on by the Group's auditors and delivered to 
the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) 
did not include a reference to any matters to which the auditors drew attention 
by way of emphasis without qualifying their report, and (iii) did not contain a 
statement under section 237(2) or (3) of the Companies Act 1985. 
 
 
These consolidated financial statements have been prepared in accordance with 
the accounting policies set out in the Annual Report for the year ended 31 
December 2008. The Annual Report and Financial Statements of the Group are 
prepared in accordance with the IFRSs as adopted by the EU. The prior year 
comparatives are derived from audited financial information set out in the 
Annual Report and Financial Statements for the year ended 31 December 2008 and 
the unaudited financial information in the consolidated interim financial 
statements for the six months ended 30 June 2008. These consolidated financial 
statements have been prepared under the historical cost convention. 
 
 
On 12 August 2009 the Group announced it was in early discussions that may or 
may not lead to an offer being made for Group. Having regard to these 
discussions and the requirements of the Panel on Takeovers and Mergers, the 
Group has voluntarily chosen to prepare the set of financial statements in 
accordance with the reporting requirements as set out in IAS 34 Interim 
Financial Reporting as adopted by the EU and the appropriate sections of the 
Disclosure and Transparency Rules. The set of financial statements has been 
prepared applying the accounting policies and presentation that were applied in 
the preparation of the Group's published consolidated Annual Report and 
Financial Statements for the year ended 31 December 2008. They do not include 
all of the information required for full annual financial statements and should 
be read in conjunction with the consolidated Annual Report and Financial 
Statements of the Group as at and for the year ended 31 December 2008. 
 
 
The preparation of financial statements in conformity with IFRSs requires 
management to make judgments, estimates and assumptions that affect the 
application of policies and reported amounts of assets and liabilities, income 
and expenses. Actual results may differ from these estimates. 
 
 
3.  Going concern 
 
 
The Directors have reviewed the banking facilities available to the Group, the 
profit and cash forecasts of the Group with appropriate sensitivities around 
operational performance. The ability of the Group to continue trading in the 
foreseeable future is contingent upon the availability of its overdraft 
facility, which is due for renewal on 31 March 2010. The Medical House PLC will 
open renewal negotiations with its bank in due course and has not at this stage 
sought any written commitment that the facility will be renewed. However, the 
Medical House PLC is aware of no indications that the overdraft facility will 
not be renewed at that time. Accordingly the directors consider that these 
statements should be prepared on a going concern basis. 
 
4. Significant accounting policies 
 
 
The following published accounting standards have become effective from 1 
January 2009: 
 
 
- IFRS 8 "Operating Segments" - Financial information is required to be reported 
on the same basis as is used internally for evaluating operating segment 
performance and deciding how to allocate resources. Further information relating 
to the Group's operating segments is included in Note 5. 
 
 
- Revised IAS 23 "Borrowing Costs" - The Group does not expect this to impact 
the Financial Statements. 
 
 
- Revised IAS 1 "Presentation of Financial Statements" - This has resulted in 
the presentation of a Consolidated Statement of Comprehensive Income. 
 
 
- Amendments to IFRS 2 "Share Based Payment - Vesting Conditions and 
Cancellations" -The Group does not expect this to impact the Financial 
Statements. 
 
 
5. Segmental analysis 
 
 
The directors consider that the Group only has one business segment being the 
design, development, assembly and sale of medical instruments capable of 
injecting a drug or vaccine, as well as research and development activities in 
this area. Other income is ancillary and does not constitute a segment in its 
own right. The turnover, operating profit and net assets of the Group are 
attributable to the drug delivery devices. 
 
 Turnover originated in the 
United Kingdom (60%), EU (33%) and Rest of the World (7%). All assets are held 
within the United Kingdom. 
 
 
6. Taxation 
 
 
Taxation has been provided at the estimated effective rate for the period, based 
on the mainstream rate of 28%. The profit in the period is covered by unused tax 
losses brought forward and therefore a deferred tax charge arises as a reduction 
in the deferred tax asset on these losses, after adjustments in respect of the 
tax charge in prior periods. 
 
 
7. Earnings per share 
 
 
The calculation of earnings per share is based on the profit after taxation and 
the number of ordinary shares in issue during the period (60,118,869 shares as 
at 31 December 2008 and as at 30 June 2009). The diluted earnings per share are 
based upon the number of ordinary shares in issue during the period, plus the 
maximum number of shares which could be issued under share option schemes. The 
total number of shares used to calculate the diluted earnings per share is 
62,501,369. 
 
8. Issued share capital 
 
 
+------------------------+---------------+-------------+------------+------------+ 
|                        |      6 months |   12 months |   6 months |  12 months | 
+------------------------+---------------+-------------+------------+------------+ 
|                        |         ended |       ended |      ended |      ended | 
+------------------------+---------------+-------------+------------+------------+ 
|                        |          30th |        31st |   30 June  |         31 | 
|                        |          June |    December |            |   December | 
+------------------------+---------------+-------------+------------+------------+ 
|                        |          2009 |        2008 |       2009 |       2008 | 
+------------------------+---------------+-------------+------------+------------+ 
|                        |               |             |  Allotted, |  Allotted, | 
+------------------------+---------------+-------------+------------+------------+ 
|                        |               |             |     called |  called up | 
|                        |               |             |         up |            | 
+------------------------+---------------+-------------+------------+------------+ 
|                        |    Authorised |  Authorised |        and |  and fully | 
|                        |               |             |      fully |            | 
+------------------------+---------------+-------------+------------+------------+ 
| Company                |        number |      number |       paid |       paid | 
+------------------------+---------------+-------------+------------+------------+ 
| Ordinary shares of 1p  |   500,000,000 | 500,000,000 | 60,118,869 | 60,118,869 | 
+------------------------+---------------+-------------+------------+------------+ 
 
 
 
 
9. Intangible assets 
 
 
+--------------------------------------------------+---------+---------+---------+---+ 
|                                                  | Product           | 
+--------------------------------------------------+-------------------+ 
|                                                            |       Development | 
+------------------------------------------------------------+-------------------+ 
|                                                            |             costs | 
+------------------------------------------------------------+-------------------+ 
| Group                                                      |           GBP'000 | 
+------------------------------------------------------------+-------------------+ 
|                                                            |                   | 
+------------------------------------------------------------+-------------------+ 
| Cost                                                       |                   | 
+------------------------------------------------------------+-------------------+ 
| Balance at 1 January 2008                                  |             2,147 | 
+------------------------------------------------------------+-------------------+ 
| Additions                                                  |               423 | 
+------------------------------------------------------------+-------------------+ 
| Balance at 31 December 2008                                |             2,570 | 
+------------------------------------------------------------+-------------------+ 
|                                                            |                   |   | 
+------------------------------------------------------------+-------------------+---+ 
| Balance at 1 January 2009                                  |             2,570 | 
+------------------------------------------------------------+-------------------+ 
| Additions                                                  |               252 | 
+------------------------------------------------------------+-------------------+ 
| Balance at 30 June 2009                                    |             2,822 | 
+------------------------------------------------------------+-------------------+ 
|                                                            |                   | 
+------------------------------------------------------------+-------------------+ 
| Amortisation and Impairment                                |                   | 
+------------------------------------------------------------+-------------------+ 
| Balance at 1 January 2008                                  |               240 | 
+------------------------------------------------------------+-------------------+ 
| Charge per income statement                                |                 - | 
+------------------------------------------------------------+-------------------+ 
| Impairment                                                 |               135 | 
+------------------------------------------------------------+-------------------+ 
| Balance at 31 December 2008                                |               375 | 
+------------------------------------------------------------+-------------------+ 
|                                                            |                   | 
+------------------------------------------------------------+-------------------+ 
| Balance at 1 January 2009                                  |               375 | 
+------------------------------------------------------------+-------------------+ 
| Charge per income statement                                |                 - | 
+------------------------------------------------------------+-------------------+ 
| Impairment                                                 |                95 | 
+------------------------------------------------------------+-------------------+ 
| Balance at 30 June 2009                                    |               470 | 
+------------------------------------------------------------+-------------------+ 
|                                                            |                   | 
+------------------------------------------------------------+-------------------+ 
| Carrying Amounts                                           |                   | 
+------------------------------------------------------------+-------------------+ 
| At 31 December 2007                                        |             1,907 | 
+------------------------------------------------------------+-------------------+ 
| At 31 December 2008                                        |             2,195 | 
+------------------------------------------------------------+-------------------+ 
|                                                            |                   | 
+------------------------------------------------------------+-------------------+ 
| At 30 June 2009                                            |             2,352 | 
+--------------------------------------------------+---------+---------+---------+---+ 
 
Product development costs relate to the capitalised costs of developing drug 
delivery systems. As at 30 June 2009 these amounted to GBP2,352,000 (31 December 
2008 GBP2,195,000). Where a contract exists these costs are amortised on a cost 
per unit basis over the life of the related contract, taking account of the 
minimum contracted volumes. Where no contract exists they are written-off over 
the expected useful life of the product. The costs are charged through 
administrative expenses section of the income statement. 
During the period ended 30 June 2009 the directors identified an indicator of 
impairment in respect of a certain drug delivery system and therefore carried 
out an impairment test on this drug delivery system. This resulted in the 
recognition of an impairment expense of GBP95,000. No further indicators of 
impairment have been indentified in the period. 
 
 
 
 
10. Financial instruments 
 
 
Pursuant to the requirements of the Disclosure and Transparency Rules, the Group 
provides the following information on its principal risks and uncertainties. 
 
 
The principal risks and uncertainties to which the Group is exposed were 
detailed in our Annual Report and Financial Statements for the year ended 31 
December 2008. The items listed below remain unchanged : 
 
 
  *  Credit risk 
  *  Market price risk 
  *  Liquidity risk? 
  *  Capital Management 
 
11. Subsequent Events 
 
 
As referred to in the Responsibility Statement on page 3, subsequent to 30 June, 
an approach has been made that may or may not lead to an offer being made for 
Group. 
 
12. Related Party Transactions 
 
 
During the period the Group disposed of a motorcar to David Urquhart (a 
director), in an arm's length transaction. The motorcar had a book value of 
GBP36,229 and proceeds of GBP38,765 were agreed upon. The proceeds are being 
paid over a period of 24 months at an interest rate of 3.5% pa. The balance due 
to the Group at 30 June 2009 was GBP33,567. 
 
 
13. Board approval of announcement 
 
 
The Interim announcement was approved by the Board of Directors on 17 September 
2009. 
 
 
Copies of this report are available to the public at the Company's registered 
office: 
199 Newhall Road, Sheffield, S9 2QJ, and on the website www.themedicalhouse.com. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR CKOKKABKDBCD