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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Micap | LSE:MIC | London | Ordinary Share | GB0033274050 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.375 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:6949E MICAP PLC 28 September 2007 For Release 7.00am 28 September 2007 Micap plc (MIC.L) Preliminary results for the twelve months to 31st March 2007 Micap plc, the AIM-quoted developer and producer of value added microencapsulated ingredients to industry, ("Micap" or the "Company") today reports its Preliminary results for the twelve months to 31st March 2007. "Refocussed Sales Infrastructure" "A Year of Significant Progress and Change for Micap" HIGHLIGHTS * Turnover on continuing operations up by 120% to #0.71 million (2006: #0.32 million). * Reduced loss per ordinary share of 1.1p (2006: loss 3.3p); * Operating loss on continuing operations reduced by 34 % to #0.95 million (2006: loss #1.44 million); After tax loss of #0.96 million (2006 - loss #1.52m). * Profile of the benefits of microencapsulation continues to rise * Direct sales of Micap yeast encapsulated ingredients making good progress * Formal launch of Micap Ingredients range into the food industry planned for Autumn 2007 * Good progress in Licensing and Development division with new and existing customers * Following a strategic review, non-executive Chairman Bill Mapstone to take a more active executive role to leverage upon his knowledge and contacts in the food market, so as to optimise the impact of Micap's launch of its food ingredient range. Post Period End * Disposal of business of loss making subsidiary, Applied Analysis Ltd Commenting on the results, Michael Norris, Chief Executive of Micap, said: "This has been a year of significant progress and change for Micap during which, we have moved away from the research and development led business of the past and focussed on generating revenues from our own channels, specifically with our direct sales of Micap Ingredients into the food market". "These changes have given us more control over our own destiny, and it is my challenge to ensure that the correct infrastructure is in place to allow Micap to achieve its potential in selling products to the market, developing new opportunities both for Micap and our partners, and achieving the necessary progress to reach the market with our agrochemical partners". Contact: Micap plc Tel: 01942 625590 Michael Norris, CEO Mob: 07966 341802 Adventis Financial PR Tel: 020 7034 4758 / 020 7034 4759 Tarquin Edwards Mob: 07879 458 364 Chris Steele Mob: 07979 604 687 HB Corporate Tel: 020 7510 8600 Jim McGeever Rory Creedon Chairman's statement When I joined the Board of Micap in January of this year, my stated intention was to help the Company move from its previous business model of providing technical services and support for its business partners to a more commercial, sales driven model, which would enable Micap to capitalise on the latent opportunities within the business much more quickly. Specifically, the licence agreement with Firmenich, which came to an end on 31st March 2007, had precluded Micap from directly marketing its high value yeast encapsulated ingredients to customers in the food industry, and the structure of the business reflected this. We plan to put in place an infrastructure, which enables us to obtain maximum value from our direct sales opportunities, whilst at the same time to continue to attract blue chip clients to work with our licensing and development team, as the latter's reputation for effective solutions grows. Initially, we are launching our range of yeast encapsulated products into the savoury food market, with the aim ultimately of converting more of our development projects into direct sales opportunities. Within the development and licensing division we continue to make progress on many fronts. Our agrochemical partners have extended their evaluation agreements with us, and we continue to win development contracts from major blue chip companies for our services. I am confident that these will lead to repeat business and ultimately licensing or production opportunities. Following a strategic review of the business, it has been decided that I will take a more active role in the Company, and as such, I will become Executive Chairman on a part time basis with effect from the AGM. We have been considering the options available to us to achieve the business model we require and are currently reviewing alternatives. In order to provide working capital to the Company, my fellow director, Neil Crabb, and I have provided loans of #40,000 and #60,000 respectively to the company. We have agreed that we will convert these into equity at the next corporate event. In conclusion, I am very excited about the opportunities which exist within Micap. The Company continues to move satisfactorily towards commercial success and I am hopeful that with further input from myself and a refocused sales infrastructure, we can accelerate this progress and deliver benefit to all stakeholders. Chief Executive's report Overview This has been a year of significant progress and change for Micap during which, we have moved away from the research and development led business of the past and focussed on generating revenues from our own channels, specifically with our direct sales of Micap Ingredients into the food market. These changes have given us more control over our own destiny, and it is my challenge to ensure that the correct infrastructure is in place to allow Micap to achieve its potential in selling products to the market, developing new opportunities both for Micap and our partners, and achieving the necessary progress to reach the market with our agrochemical partners. Financial review The loss after tax was #0.96m (2006: loss #1.52m), which represents a loss per ordinary share of (1.1)p (2006: loss (3.3)p). Turnover on continuing operations was up 120% to #0.71m (2006: #0.32m), and the operating loss on continuing operations fell 34% to #0.95m (2006:1.44m). Year end cash balances totalled # (0.05)m, with short term debtors (including R&D tax credits of #0.10m) of #0.26m. Our Bankers, NatWest, have supported our business through the provision of an overdraft facility to help us manage our short term cash requirements. In Spring of this year we concluded the assignment of our former Head Office premises at Haydock, UK which removed a major drain on our resources. We continue to analyse all our overheads on a regular basis to ensure we are receiving value for money in all cases. During the year we raised #0.80m of equity to support the working capital of the business. In addition, as mentioned in the Chairman's statement above, we have received a loan of #0.10m from two of our non-executive Directors. The Directors have stated their intention to convert these loans to equity at the next opportunity. Direct sales Over the past months, we have invested significant time and effort into creating a quality range of products for the savoury food market. Having evaluated many flavours and oils over the period, we have concentrated on a small number of high volume opportunities where the benefits we bring of heat stability, flavour retention and ease of handling allow us to differentiate our products from our competitors. We have retained a specialist development kitchen to carry out application trials, comparing our products with our peers and evaluating their respective performances, and at the same time a number of target customers have been running live trials using our ingredients in end-products. Feedback from these sources has been very positive. Our production facility in Athlone, Ireland has proven very effective in producing, drying and blending the ingredients, and we are developing technical and marketing documentation to support the product launch, along with a redesigned website. We now feel that we are in a position where we can plan a full launch of our product range, which we intend to coincide with this year's Food Ingredients Exhibition in London on 30th October 2007. In addition to our yeast ingredients, our development team in Bremerhaven, Germany have produced a natural Jojoba bead, which is a premium cosmetic product, used as an exfoliant in creams, gels and washes. We have signed distribution agreements with two major distributors, Rahn AG and CQMasso SA, to launch the jojoba beads across many markets worldwide, and we will be working very closely with them to ensure the product is actively promoted. The next challenge for Micap is to develop the next generation of its own products for direct sales. Licensing and development We continue to work with major companies on the use of our yeast encapsulation system for delivery of agrochemical actives One of our agrochemical partners, part of a worldwide organisation, has agreed an extension to our evaluation agreement recently to enable us to measure the performance of the Micap product against a commercially available standard.. Nufarm, the major Australian pesticide company, are awaiting results of crop trials, and we will be entering negotiations regarding the next steps very soon. It is very heartening that we have reached our initial milestones in these relationships. The technical challenges we face as we move through the process towards regulation are great, and it is a tribute to the technical team at Micap and at our partners that we continue to make progress. As the use of microencapsulation techniques becomes more widely known, the reputation of our development team is attracting a number of major blue-chip companies to Micap. In recent months we have won contracts from a world leading animal health company, an international nutritional ingredients manufacturer and one of Europe's leading sugar businesses amongst many others to assist in the development of new products. It is our intention to cultivate these relationships with a view to continuing our involvement through the development and scale up process to full product creation and launch. Applied Analysis Ltd It has become apparent in recent months that our business model did not lend itself to activity in the highly regulated pharmaceutical market. Our key growth areas have been in food, feed and nutrition and in industrial products. As such our involvement with Applied Analysis Ltd has been outside our core activities. Accordingly, we have sold the business and goodwill of Applied Analysis Ltd to FDAS Ltd, a young analytical business based in Nottingham, UK. We will continue to receive an income based upon the sales from our customer list for a three year period. We have subsequently closed down our operation in Beverley, and I would like to take this opportunity to thank all the members of the team for their efforts whilst part of the Micap Group. Outlook We are focussed on delivery of a successful Direct Sales operation, and I am pleased with the positive feedback we are receiving from customers who are using our ingredients in new product developments. Combining these short and medium term revenue opportunities with the longer term projects in agrochemicals creates a balanced business which is capable of generating good returns for Shareholders, and I look forward to progress in all these areas. MICAP PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2007 ------------------------------------------------------------------------------------- 2007 2006 Note # # TURNOVER Continuing operations 712,039 323,143 Discontinued operations 144,754 237,803 ------------------------------------------------------------------------------------- 856,793 560,946 Cost of sales (144,069) (215,437) ------------------------------------------------------------------------------------- GROSS PROFIT 712,724 345,509 Administrative expenses (1,749,548) (1,818,160) ------------------------------------------------------------------------------------- Other operating income 29,247 - OPERATING LOSS __________________________ Continuing operations (950,619) (1,439,589) Discontinued operations (56,958) (33,062) __________________________ TOTAL OPERATING LOSS (1,007,577) (1,472,651) ------------------------------------------------------------------------------------- EXCEPTIONAL ITEMS Other exceptional items 6 (17,000) (195,000) ------------------------------------------------------------------------------------- LOSS ON ORDINARY ACTIVITIES BEFORE INTEREST (1,024,577) (1,667,651) Amounts written off investments (43,896) - Interest receivable 8 5,258 Interest payable (17,687) (5,644) ------------------------------------------------------------------------------------- LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,086,152) (1,668,037) TAX ON LOSS ON ORDINARY ACTIVITIES 122,401 147,600 ------------------------------------------------------------------------------------- LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (963,751) (1,520,437) ------------------------------------------------------------------------------------- Earnings per share - basic 3 (1.13p) (3.34p) - diluted 3 (1.13p) (3.34p) There were no recognised gains and losses for 2007 or 2006 other than those included in the profit and loss account. MICAP PLC CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2007 ------------------------------------------------------------------------------------- 31 March 31 March 2007 2006 Note # # # # FIXED ASSETS Goodwill 846,301 1,027,597 Negative Goodwill (61,600) - Net Goodwill 784,701 1,027,597 Intangible fixed assets 784,701 1,027,597 Tangible fixed assets 343,394 422,104 ---------- --------- 1,128,095 1,449,701 CURRENT ASSETS Stocks 41,250 218 Debtors 317,360 564,486 Cash at bank and in hand 324 41,131 --------- --------- 358,934 605,835 CREDITORS: amounts falling due (628,740) (899,745) within one year --------- --------- NET CURRENT (LIABILITIES)/ (269,806) (293,910) ASSETS ---------- --------- TOTAL ASSETS LESS CURRENT 858,289 1,155,791 LIABILITIES CREDITORS: amounts falling due (21,467) (109,000) after more than one year ---------- --------- NET ASSETS 836,822 1,046,791 ---------- --------- CAPITAL AND RESERVES Called up share capital 4 11,478,627 10,603,627 Share premium account 4 6,423,468 6,497,040 Employee Benefit Trust reserve 4 (188,333) (188,333) Other reserves 4 - 50,000 Profit and loss account (16,876,940) (15,915,543) ---------- --------- SHAREHOLDERS' FUNDS - ALL 836,822 1,046,791 EQUITY ---------- --------- MICAP PLC CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2007 ------------------------------------------------------------------------------------- 2007 2006 Note # # Net cash flow from operating activities 5 (1,007,205) (1,207,274) Returns on investments and servicing of finance (17,429) (386) Taxation 152,324 223,172 Capital expenditure and financial investment 25,555 (105,163) Acquisitions and disposals - (126,267) ------------------------------------------------------------------------------------- CASH OUTFLOW BEFORE FINANCING (849,755) (1,215,918) Financing 800,495 746,376 ------------------------------------------------------------------------------------- DECREASE IN CASH IN THE YEAR (49,260) (469,542) ------------------------------------------------------------------------------------- RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT FOR THE YEAR ENDED 31 MARCH 2007 ------------------------------------------------------------------------------------- 2007 2006 # # Decrease in cash in the year (49,260) (469,542) Cash outflow from decrease in debt and lease 933 9,000 financing ------------------------------------------------------------------------------------- CHANGE IN NET DEBT RESULTING FROM CASH FLOWS (48,327) (460,542) New finance lease (28,000) - ------------------------------------------------------------------------------------- MOVEMENT IN NET DEBT IN THE YEAR (76,327) (460,542) Net funds at 1 April 2006 29,250 489,792 ------------------------------------------------------------------------------------- NET DEBT AT 31 MARCH 2007 (47,077) 29,250 ------------------------------------------------------------------------------------- NOTES TO THE FINANCIAL STATEMENTS 1. Preparation of the financial statements The preliminary results have been prepared in accordance with the accounting policies set out in the Group's annual accounts to 31st March 2007. 2. The financial information set out above does not comprise the company's statutory financial statements. Statutory financial statements for the previous financial year ended 31 March 2006 have been delivered to the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain any statement under section 237(2) or (3) of the Companies Act 1985. The auditors have not yet reported on financial statements for the year ended 31 March 2007, nor have any such financial statements been delivered to the Registrar of Companies. The financial statements were approved by a duly appointed and authorised committee of the Board of Directors on 19th September 2007. 3. Earnings per share Basic earnings per share are calculated on loss for the financial year of #963,751 (2006: #1,520,347) and on the weighted average number of shares in issue during the year of 85,330,704 (2006: 45,496,355). Diluted earnings per share are calculated on loss for the financial year of #963,751 (2006: #1,520,347) and on the weighted average number of shares in issue during the year of 85,330,704 (2006: 45,496,355). 4. Movements in reserves Share Employee Other Profit and premium benefit trust reserves loss account account reserve GROUP # # # At 1 April 2006 6,497,040 (188,333) 50,000 (15,915,543) Loss retained for the - - - (963,751) year Expenses incurred on (73,572) - - - shares issued during the year Exchange gain on - - - 2,354 consolidation Movement on other - - (50,000) - reserves AT 31 MARCH 2007 6,423,468 (188,333) - (16,876,940) -------------------------------------------------------------------------------- 5. Reconciliation of operating loss to net cash flow from operating activities 2007 2006 # # Operating loss (1,007,577) (1,472,651) Exceptional items (17,000) (195,000) Amortisation of intangibles 75,000 40,000 Depreciation of tangible fixed assets 99,485 126,447 Profit on disposal of tangible fixes assets (15,330) (1,355) (Increase) / decrease in stocks (41,032) 10,497 Decrease in debtors 217,203 82,976 Foreign exchange gain 2,354 - (Decrease) / increase in creditors (320,308) 201,812 NET CASH OUTFLOW FROM OPERATIONS (1,007,205) (1,207,274) -------------------------------------------------------------------------------- 6. Exceptional items 2007 2006 # # Provisions for subsidiary disposal 17,000 - costs Dilapidation costs - 195,000 17,000 195,000 The dilapidation costs arose as a result of the decision to relocate offices and laboratories. The charge relates to the revision of the costs estimate in respect of such works. The subsidiary disposal costs represent redundancy provisions expected to be made following its closure. The activities of the subsidiary have been shown as discontinued in the financial statement. 7. Dividend The Directors have not declared a dividend. Copies of the annual report will be sent to all shareholders shortly and will also be available to the public at the Company's registered office, Enterprise House, Richmond Hill, Pemberton, Wigan, WN5 8AA. This information is provided by RNS The company news service from the London Stock Exchange END FR OKOKNNBKBDCB
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