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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Vivomedica | LSE:VVM | London | Ordinary Share | GB0030475106 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.10 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 6548X
Vivomedica PLC
27 June 2008
For immediate release 27 June 2008
VivoMedica plc
("VivoMedica" or the "Company")
Preliminary Results for the year ended 31 December 2007
VivoMedica (AIM:VVM), the pharmaware company announces its preliminary results for the year ended 31 December 2007.
Highlights include:
* DrugPrint® system being validated on a range of cardiomyocytes cell cultures to meet collaborators requirements
* Disposal of the Company's Infusion Business, Zimed Limited for maximum consideration of £5.0 million, of which £1.2 million was
received in cash, including sales related milestone payments
* Name change to VivoMedica plc following the disposal
* Successful poster presentation on DrugPrint®, pre-clinical tool to identify drug-induced cardio-toxicity, at the Safety
Pharmacology Society (SPS) meeting in Edinburgh in September 2007
* Positive scientific feedback on PathScoreTM, computerised image analysis system, following an oral poster presentation given at
the Ninth Nottingham International Breast Cancer Conference in September 2007
Commenting on the preliminary results, Peter Leyland, Chief Executive Officer of VivoMedica said: "Following the successful disposal of
the infusion business and subsequent renaming of the business to VivoMedica in 2007, the team has been able to focus its energy on our two
core products, DrugPrint® and PathScoreTM. We are pleased with the progress that has been made both technically and through partnering and
collaboration discussions and look forward to reporting on further developments as appropriate."
For further information, please contact:
VivoMedica 01795 414460
Peter Leyland, Chief Executive Officer
Susan Veness, Finance Director
Brewin Dolphin Investment Banking (NOMAD) 0845 270 8600
Mark Brady / Alison Barrow
Buchanan Communications 020 7466 5000
Diane Stewart / Catherine Breen / Tim
Anderson
Chief Executive Officer's Review
I am pleased to report on the performance of VivoMedica for the year ended 31 December 2007, and on major events since the year-end.
Following the strategic review conducted by the Board during the early part of 2007, VivoMedica has undergone a significant
transformation with the sale of Zimed Limited and our subsequent name change, as well as the increased focus and tangible output from the
internal development of our DrugPrint® program. Throughout the process we have maintained the support of our two largest stakeholders Merlin
Biosciences and QinetiQ.
2008 looks to be a very exciting year for the Company. We are in discussions with potential partners for both DrugPrint® and PathScoreTM
along the commercial pathways identified by the Board.
During 2007 we strengthened our operational and commercial team, which has allowed us to accelerate the speed of our development
programs and to deal with the large number of enquiries we have had, especially after the very successful poster presentation at the Safety
Pharmacology Society (SPS) meeting in Edinburgh. The SPS Poster is available on our web site.
Business Development
Building on the full review of the sale of Zimed Limited and updates on the commercial pathways for DrugPrint® and PathScoreTM
development in my report on the Company's progress for the half year ended 30 June 2007 and the trading update for VivoMedica plc on 8
October 2007, I am pleased to report on the progress the Company has achieved in the latter part of the year and the beginning of 2008.
Following the strengthening of the team and the progress that this has afforded VivoMedica, we have entered discussions covering all of
the identified commercial pathways for both DrugPrint® and PathScoreTM.
We continue to validate the DrugPrint® system on a range of cardiomyocyte cell cultures to meet our collaborators needs.
Our prime focus has been to extend our DrugPrint® platform for use with cardiomyocytes derived from human embryonic stem cells (hESC).
The combination of DrugPrint®'s sophisticated proprietary waveform analysis with a novel human heart cell model for measuring drug induced
effects is expected to provide unprecedented discriminatory power in safety screening for the pharmaceutical industry.
We have also expanded our discussions with collaborators, including academic institutions, for other cell types including neuronal
cells. The use of neuronal cells would further broaden the appeal of DrugPrint® as a unique toxicological test for the pharmaceutical sector
by broadening its applications to the evaluation of the safety and efficacy profile of CNS drug treatments. These collaborations will also
allow us, in conjunction with our partners, to offer a contract research capability and thereby establish a commercial presence. In
addition, strategic partnership discussions with the leading pharmaceutical companies for DrugPrint® continue to progress.
Discussions are also progressing with a range of global strategic collaboration partners to develop our PathScoreTM platform as a cancer
diagnostic and an immuno histochemistry system. To complete the work required to tailor the PathScoreTM platform to our collaboration
partners' needs we have signed an enabling contract with QinetiQ.
Financials
The Group operating loss for the year from the continuing operations was £1.46 million compared to £1.53 million for the prior year. The
exceptional item relating to the loss on disposal of the business and operations in Wales was £2.1 million.
The net cash outflow from operating activities was £1.67 million compared to £2.68 million in the prior year, a reduction of 38%. This
outflow was partly funded by the net proceeds received following the disposal of the Infusion Business and operations in Wales of £0.8
million.
At 31 December 2007, the Group had £0.67 million net short term debt. Following the balance sheet date the Group renegotiated a revised
bank facility of £1 million expiring on 30 April 2009.
People
2007 was an outstanding year in moving the dial on all of our internal programs and the excitement this has generated among our
strengthened team has been great to see. The challenge for 2008 is to take the output of this excellent work and enthusiasm externally which
we are all fully engaged in doing.
Outlook
As the Company's technologies have become better known and well respected we can anticipate collaborating with a number of focused
strategic partners to apply for development grant funding.
In order to continue the progress made to date further funds will be required. The directors are confident that the Group has
demonstrated progress in achieving its milestones for the development of DrugPrint® and PathScoreTM and will be able to attract further
investment through some combination of debt and equity fundraising.
The Company has an exciting future having captured the attention of a range of major players in each of the sectors we have chosen to
operate. I look forward to reporting on further progress during the year as our plans come to fruition and would like to thank our
shareholders for their continued support.
AGM
The AGM for VivoMedica will be held on 8 September 2008
Peter Leyland
Chief Executive Officer
VivoMedica
Group income statement
for the year ended 31 December 2007
Note 2007 2007 2007 2006
£000 £000 £000 £000
Continuing Discontinued Total Total
Revenue - 63 63 201
Cost of sales - (25) (25) (103)
Gross profit - 38 38 98
Administrative expenses (1,463) (388) (1,851) (2,757)
Operating loss (1,463) (350) (1,813) (2,659)
Financial income 4 - 4 18
Financial expense (274) - (274) (104)
Loss before taxation (1,733) (350) (2,083) (2,745)
Taxation 1 237 - 237 196
Loss after tax but before loss (1,496) (350) (1,846) (2,549)
on discontinued operation -
total
Loss on sale of discontinued - (2,095) (2,095) -
operation, net of tax
Loss after tax for the (1,496) (2,445) (3,941) (2,549)
financial period attributable
to equity holders of the
parent
Loss after tax but before loss
on discontinued operation
Loss after tax but before loss (1,496) (1,420)
on discontinued operation -
continuing
Loss after tax but before loss (350) (1,129)
on discontinued operation -
discontinued
(1,846) (2,549)
Loss per ordinary share
Basic and diluted loss per 2 (0.75)p (0.71)p
share from continuing
operations
Basic and diluted loss per 2 (1.22)p (0.56)p
share from discontinued
operations
Basic and diluted loss per 2 (1.97)p (1.27)p
share attributable to the
equity shareholders of the
parent
Consolidated balance sheet
at 31 December 2007
2007 2006
£000 £000
Non current assets
Intangible assets 3,651 4,907
Goodwill 3,117 4,665
Plant and equipment 63 141
6,831 9,713
Current assets
Inventories - 169
Current tax receivable 320 218
Trade and other receivables 36 83
Cash and cash equivalents 66 260
Total current assets 422 730
Total assets 7,253 10,443
Current liabilities
Interest bearing loans and borrowings 735 11
Trade and other payables 1,670 1,789
Total current liabilities 2,405 1,800
Net current liabilities (1,983) (1,070)
Non current liabilities
Convertible loan 2,305 2,211
Total non current liabilities 2,305 2,211
Total liabilities 4,710 4,011
Total assets less total liabilities 2,543 6,432
Capital and reserves
Issued ordinary share capital 4,011 4,011
Share premium 4,572 4,572
Equity element of convertible loan note 224 224
Other reserves 4,604 4,604
Retained earnings (10,868) (6,979)
Total equity attributable to the equity holders of 2,543 6,432
the parent
Statement of changes in equity attributable to the equity holders of the parent
for the year ended 31 December 2007
Group
31 December 2007 Share capital Share Other reserve Equity element of Retained earnings Total
premi convertible loan
um note
accou
nt
£000 £000 £000 £000 £000 £000
Loss for the financial period - - - - (3,941) (3,941)
Total recognised income and - - - - (3,941) (3,941)
expense
Option expense - - - - 52 52
Opening shareholders' funds 4,011 4,572 4,604 224 (6,979) 6,432
Closing shareholders' funds 4,011 4,572 4,604 224 (10,868) 2,543
Consolidated cash flow statement
for the year ended 31 December 2007
Note 2007 2006
£000 £000
Cash flows from operating activities
Loss before taxation for the period (4,178) (2,745)
Depreciation and amortisation 58 140
Share based payment charge 52 29
Issue costs of convertible loan note after 35 (90)
amortisation
Net finance costs 270 86
Loss on sale of discontinued operation 2,095 -
Taxation received 113 80
(Increase)/decrease in inventories (163) 50
Decrease in receivables 19 491
Increase/(decrease) in payables 28 (722)
Net cash outflow from operating activities (1,671) (2,681)
Cash flows from investing activities
Financial income (41) 10
Payment to acquire plant and equipment (2) (17)
Payment to acquire intangible asset - (566)
Disposal of discontinued operation (net of cash 796 -
disposed)
Net cash outflows from investing activities 753 (573)
Cash flows from financing activities
Issue of share capital - (11)
Repayment of loans (11) (6)
New loans in year - 2,500
Net cash inflow from financing activities (11) 2,483
Net decrease in cash and cash equivalents 3 (929) (771)
Opening cash and cash equivalents 260 1,031
Closing cash and cash equivalents (669) 260
Taxation
No taxation is payable in respect of the year ended 31 December 2007 (2006: £nil).
Factors affecting the tax credit for the current year:
2007 2006
£000 £000
Loss before taxation (4,178) (2,745)
Loss multiplied by the small companies rate of corporation
tax of 19% (2006: 19%) (793) (522)
Losses not utilised or recognised as deferred tax assets 793 522
Research and development tax credits receivable 237 196
Current year tax credit 237 196
Deferred tax assets have not been recognised in respect of unutilised losses of £6,193,000 (2006: £5,642,000) on the grounds that the
Directors are uncertain of the future taxable profits of the Group.
Brought forward losses are likely to reduce the current tax charge in future periods.
Loss per share
The calculation of basic and diluted loss per share attributable to equity holders of the parent is based on losses of £3,941,000 (2006:
£2,549,000) and ordinary shares of 200,555,662 (2006: 200,555,662) being the weighted average number of shares in issue during the year.
The calculation of basic and diluted loss per share attributable to equity holders of the parent from continuing operations is based on
losses of £1,496,000 (2006: £1,420,000) and ordinary shares of 200,555,662 (2006: 200,555,662) being the weighted average number of shares
in issue during the year.
The calculation of basic and diluted loss per share attributable to equity holders of the parent from discontinued operations is based
on losses of £2,445,000 (2006: £1,129,000) and ordinary shares of 200,555,662 (2006: 200,555,662) being the weighted average number of
shares in issue during the year.
The calculation of diluted loss per share has not been adjusted for 87,571,753 shares in respect of the convertible loan note and
employee share options as they are anti-dilutive
Reconciliation of net cash flow to movement in net funds
£000
Decrease in cash during the year (929)
Cash flow from movement in debt 11
Change in net funds (918)
Non cash movements (94)
Net financial liabilities at beginning of year (1,962)
Net financial liabilities at end of year (2,974)
Basis of Preparation
The financial statements are prepared on a going concern basis which the directors believe to be appropriate for the following reasons.
The Group incurred a net loss of £3,941,000 during the year ended 31 December 2007 and, at that date, the Group's current liabilities
exceeded its current assets by £1,983,000. The Group's operations are focused on the development of PathScoreTM and DrugPrint® which provide
pharma-ware solutions for customers. Given the research and development and sales and marketing phase of the Group's life cycle and the
continual work to develop further applications of the PathScoreTM and DrugPrint® products, significant research, development, sales and
marketing costs have been incurred to date in excess of revenue.
As at 31 December 2007 cash of £66,000 was held and a draw down of £735,000 had been made against overdraft facilities. The Group has
received tax refunds of £331,000 since the balance sheet date and is now meeting its day to day working capital requirements through secured
overdraft facilities. The existing overdraft facilities of £1,000,000 were negotiated with the Group's bank by the directors after the
balance sheet date and are repayable on demand and are subject to expiry on 29 April 2009.
The bank has indicated that on expiry they would consider extending these facilities for a further period of not less than six months.
The Board are currently not in possession of any information that would lead the Directors to believe that an extension would not be
granted.
The Directors have prepared projected cash flow information for the period ending 31 December 2009. Those cash flow forecasts include
certain assumptions regarding the trading performance of the business and the management of working capital. The most significant of these
are discussed below:
The nature of the Group's operations means that future income is dependent on securing collaboration agreements and/or
sales/sub-licensing contracts within the markets it currently operates in and on developing new applications for the PathScoreTM and
DrugPrint® products. The Group is currently in advanced discussions with potential sub-licencees for the PathScoreTM patents. The Group
anticipates receiving, in advance of the sub-license agreement, sums for an exclusive negotiating period of 60 days (refundable on
successful conclusion of a negotiated agreement).
The projections include assumed net placement proceeds of £0.9m. The nature of the Group's business is such that there can be
considerable unpredictable variation in the timing and amount of cash inflows generated from planned product launches. The directors are
confident that the Group will be able to raise additional funds through further debt or equity raisings when required to secure further
development funds and believe that the Group has demonstrated progress in achieving its milestones for the development of DrugPrint® and
PathScoreTM and is able to attract investors.
Included within the Group's net current liabilities are trade creditors of £1,221,000. The Group is currently in discussion with the
trade creditor representing the majority of this balance. Unless the balance is repaid out of cash flows generated by the sub-license
agreement or placement described above, the creditor has agreed in principle to convert a large proportion of the outstanding amount into
ordinary share capital of the Company.
On the basis of the cash flow forecasts the Directors consider that the Group and Company will continue to operate within the facility
currently agreed and within that which they expect to be agreed prior to expiry of the existing facilities, when the Group's bankers will
consider renewing the facility for a further period of not less than six months.
However, the margin of facilities over requirements is not large and there can be no certainty in relation to the adequacy and continued
availability of the overdraft facility, the potential proceeds from the planned placement, the validity of the trading assumptions used in
the cash flow forecasts or the conversion of the trade creditor into new ordinary shares should this be necessary, which may cast
significant doubt on the Group's and Company's ability to continue as a going concern. The Group and Company may therefore, be unable to
continue realising their assets and discharging their liabilities in the normal course of business. The financial statements do not include
any adjustments that would result from the basis of preparation being inappropriate.
Copies of the Group's Report and financial statements will be posted to shareholders on 30 June 2008 and available from the Company's
head office at Building 130, Abbott Drive, Kent Science Park, Sittingbourne, Kent ME9 8AZ and the Group's website, www. Vivomedica.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SELFIMSASELM
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