TIDMOXE
RNS Number : 8007Q
Oxeco PLC
20 April 2009
?
Embargo 7.00am on 20 April 2009
Oxeco plc
Audited Annual Results for the year ended 31 January 2009
Chairman's Statement
Oxeco plc ("Oxeco" or the "Company") was established in October 2006 and
subsequently admitted to trading on the AIM market in December 2006. Oxeco
raised net proceeds of GBP2.84 million in cash with a stated strategy of seeking
investments in or acquiring assets, businesses or companies in the technology
and science sectors.
Oxeco currently has one subsidiary, Oxray Limited ("Oxray"), which was acquired
in June 2007 as a start up business and which aimed to become a leading provider
of molecular structure determination services to both industry and academic
institutions.
At the time of the Company's acquisition of Oxray, the Directors advised that
the ongoing investment strategy would be to continue to identify opportunities
in the technology and science sectors and especially those which are
complementary to the X-ray crystallography molecular structure determination
business. The Board has reviewed a number of investment opportunities that are
in areas complementary to the Oxray business although none were considered to
offer sufficiently attractive prospects for shareholders.
Oxray has now substantially completed the development of its novel X-ray
crystallography structure determination software but the results of marketing
efforts to establish a solid customer base have been disappointing. In addition,
Oxray has not been able to strengthen and develop its product service offering
through licensing-in Intellectual Property and making bolt-on acquisitions in
this field as originally envisaged. The Directors have therefore undertaken a
review of the Oxray business and have concluded that this is not a market to
which the Company intends to commit significant further resource.
Accordingly, the Directors now intend to revert to seeking further opportunities
within the general technology and science sectors and the Board is reviewing its
options in relation to the current Oxray business.
Following the recent strategic review, Jussi Westergren, who joined the Company
at the time of the Oxray acquisition, has resigned as Chairman of Oxeco and I
have been appointed to the role of replacement Chairman. I will also continue to
be responsible for the finance function.
The consolidated trading loss for the year after taxation and before impairment
of goodwill was GBP228,000 compared to a loss of GBP63,000 for the comparable
period from incorporation on 17 October 2006 to 31 January 2008. Goodwill in
relation to the Oxray business has been impaired to a nil value with the
write-off generating an exceptional expense of GBP2,120,000 to give a reported
loss for the year after taxation and impairment of GBP2,348,000. Consolidated
net assets at 31 January 2009 amounted to GBP2.52 million including cash
balances of GBP2.53 million compared with net assets of GBP4.87 million and cash
balances of GBP2.76 million a year earlier at 31 January 2008. The cash outflow
for the Group during the year to 31 January 2009 amounted to GBP227,000 and cash
balances continue to be managed prudently, with tight cost control.
Oxeco Plc is well capitalised and I am confident that the renewed focus on
science and technology investment strategy will enable your Company to exploit
acquisition opportunities afforded by difficult financial markets.
Michael Bretherton
Executive Chairman
The audited accounts for the year ended 31 January 2009 are available on
www.oxecoplc.com and have been posted to all shareholders.
CONTACT
+------------------------------------------------+----------------------------------------+
| Michael Bretherton | +44 (0) 207099 7266 |
| Oxeco plc | |
| www.oxecoplc.com | |
+------------------------------------------------+----------------------------------------+
| Ray Zimmerman/Jonathan Evans | +44 (0) 207 060 1760 |
| Zimmerman Adams International Limited | |
| www.zimmint.com | |
+------------------------------------------------+----------------------------------------+
Income statement for the year ended 31 January 2009
+------------------------------------+--------+--------------+--------------+
| | Notes | Year to | Period to |
| | | 31 January | 31 January |
| | | 2009 | 2008 |
+------------------------------------+--------+--------------+--------------+
| | | GBP000 | GBP000 |
+------------------------------------+--------+--------------+--------------+
| Revenue | | 18 | 7 |
+------------------------------------+--------+--------------+--------------+
| Administrative expenses | | (376) | (243) |
+------------------------------------+--------+--------------+--------------+
| Impairment of goodwill | | (2,120) | - |
+------------------------------------+--------+--------------+--------------+
| Operating loss | 2 | (2,478) | (236) |
+------------------------------------+--------+--------------+--------------+
| Finance income | 3 | 127 | 178 |
+------------------------------------+--------+--------------+--------------+
| Loss before taxation | | (2,351) | (58) |
+------------------------------------+--------+--------------+--------------+
| Taxation | 5 | 3 | (5) |
+------------------------------------+--------+--------------+--------------+
| Loss for the year/period | | (2,348) | (63) |
+------------------------------------+--------+--------------+--------------+
| Attributable to: | | | |
+------------------------------------+--------+--------------+--------------+
| Equity holders of the parent | | (2,348) | (63) |
+------------------------------------+--------+--------------+--------------+
| | | | |
+------------------------------------+--------+--------------+--------------+
| Loss per share: | | | |
+------------------------------------+--------+--------------+--------------+
| Basic and diluted - post | 6 | (0.39)p | (0.01)p |
| impairment of goodwill | | | |
+------------------------------------+--------+--------------+--------------+
| Basic and diluted - pre impairment | 6 | (0.04)p | (0.01)p |
| of goodwill | | | |
+------------------------------------+--------+--------------+--------------+
Comparative figures relate to the period from incorporation on 17 October 2006
to 31 January 2008.
The loss for the year arises from the Group's continuing operations.
Statements of Changes in Equity for the year ended 31 January 2009
+---------------------------------+----------+----------+----------+----------+
| | Attributable to the equity holders of the |
| | parent |
+---------------------------------+-------------------------------------------+
| | Share | Share | Retained | Total |
| | Capital | Premium | Deficit | Equity |
+---------------------------------+----------+----------+----------+----------+
| The Group | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+----------+----------+----------+
| At 17 October 2006 | - | - | - | - |
+---------------------------------+----------+----------+----------+----------+
| Loss for the period | - | - | (63) | (63) |
+---------------------------------+----------+----------+----------+----------+
| Total recognised income and | - | - | (63) | (63) |
| expense | | | | |
+---------------------------------+----------+----------+----------+----------+
| Issue of shares | 600 | 4,500 | - | 5,100 |
+---------------------------------+----------+----------+----------+----------+
| Expenses of issue of shares | - | (167) | - | (167) |
+---------------------------------+----------+----------+----------+----------+
| At 31 January 2008 | 600 | 4,333 | (63) | 4,870 |
+---------------------------------+----------+----------+----------+----------+
| Loss for the year | - | - | (2,348) | (2,348) |
+---------------------------------+----------+----------+----------+----------+
| At 31 January 2009 | 600 | 4,333 | (2,411) | 2,522 |
+---------------------------------+----------+----------+----------+----------+
+---------------------------------+----------+----------+-----------+----------+
| | Attributable to the equity holders of the |
| | parent |
+---------------------------------+--------------------------------------------+
| | Share | Share | Retained | Total |
| | Capital | Premium | Earnings/ | Equity |
| | | | (Deficit) | |
+---------------------------------+----------+----------+-----------+----------+
| The Company | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+----------+-----------+----------+
| At 17 October 2006 | - | - | - | - |
+---------------------------------+----------+----------+-----------+----------+
| Profit for the period | - | - | 21 | 21 |
+---------------------------------+----------+----------+-----------+----------+
| Total recognised income and | - | - | 21 | 21 |
| expense | | | | |
+---------------------------------+----------+----------+-----------+----------+
| Issue of shares | 600 | 4,500 | - | 5,100 |
+---------------------------------+----------+----------+-----------+----------+
| Expenses of issue of shares | - | (167) | - | (167) |
+---------------------------------+----------+----------+-----------+----------+
| At 31 January 2008 | 600 | 4,333 | 21 | 4,954 |
+---------------------------------+----------+----------+-----------+----------+
| Loss for the year | - | - | (2,432) | (2,432) |
+---------------------------------+----------+----------+-----------+----------+
| At 31 January 2009 | 600 | 4,333 | (2,411) | 2,522 |
+---------------------------------+----------+----------+-----------+----------+
Balance Sheet as at 31 January 2009
+-----------------------------------+-------+---------+--------+----------+---------+
| | | Group | Group | Company | Company |
+-----------------------------------+-------+---------+--------+----------+---------+
| | | 2009 | 2008 | 2009 | 2008 |
+-----------------------------------+-------+---------+--------+----------+---------+
| | Notes | GBP000 | GBP000 | GBP000 | GBP000 |
+-----------------------------------+-------+---------+--------+----------+---------+
| ASSETS | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Non-current assets | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Property, plant and equipment | 7 | 2 | 2 | - | - |
+-----------------------------------+-------+---------+--------+----------+---------+
| Intangible assets - goodwill | 8 | - | 2,120 | - | - |
+-----------------------------------+-------+---------+--------+----------+---------+
| Investment in subsidiary | 9 | - | - | - | 2,100 |
| undertaking | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| | | 2 | 2,122 | - | 2,100 |
+-----------------------------------+-------+---------+--------+----------+---------+
| Current assets | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Trade and other receivables | 10 | 28 | 29 | 21 | 223 |
+-----------------------------------+-------+---------+--------+----------+---------+
| Cash and cash equivalents | 11 | 2,534 | 2,761 | 2,524 | 2,646 |
+-----------------------------------+-------+---------+--------+----------+---------+
| | | 2,562 | 2,790 | 2,545 | 2,869 |
+-----------------------------------+-------+---------+--------+----------+---------+
| TOTAL ASSETS | | 2,564 | 4,912 | 2,545 | 4,969 |
+-----------------------------------+-------+---------+--------+----------+---------+
| | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| LIABILITIES | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Current liabilities | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Trade and other payables | 12 | (42) | (37) | (23) | (10) |
+-----------------------------------+-------+---------+--------+----------+---------+
| Current taxation | 5 | - | (5) | - | (5) |
+-----------------------------------+-------+---------+--------+----------+---------+
| TOTAL LIABILITIES | | (42) | (42) | (23) | (15) |
+-----------------------------------+-------+---------+--------+----------+---------+
| | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| NET ASSETS | | 2,522 | 4,870 | 2,522 | 4,954 |
+-----------------------------------+-------+---------+--------+----------+---------+
| | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| EQUITY | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Attributable to equity holders of | | | | | |
| the parent | | | | | |
+-----------------------------------+-------+---------+--------+----------+---------+
| Share capital | 13 | 600 | 600 | 600 | 600 |
+-----------------------------------+-------+---------+--------+----------+---------+
| Share premium | 14 | 4,333 | 4,333 | 4,333 | 4,333 |
+-----------------------------------+-------+---------+--------+----------+---------+
| Retained (deficit)/earnings | | (2,411) | (63) | (2,411) | 21 |
+-----------------------------------+-------+---------+--------+----------+---------+
| TOTAL EQUITY | | 2,522 | 4,870 | 2,522 | 4,954 |
+-----------------------------------+-------+---------+--------+----------+---------+
Cash Flow Statements for the year ended 31 January 2009
+--------------------------------+-------+---------+----------+----------+---------+
| | | Group | Group | Company | Company |
+--------------------------------+-------+---------+----------+----------+---------+
| | | 2009 | 2008 | 2009 | 2008 |
+--------------------------------+-------+---------+----------+----------+---------+
| | Notes | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------------+-------+---------+----------+----------+---------+
| OPERATING ACTIVITIES | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Operating loss | | (2,478) | (236) | (2,562) | (152) |
+--------------------------------+-------+---------+----------+----------+---------+
| Depreciation on plant and | | 1 | 1 | - | - |
| equipment | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Impairment of goodwill | | 2,120 | - | - | - |
+--------------------------------+-------+---------+----------+----------+---------+
| Impairment of investment | | - | - | 2,100 | - |
+--------------------------------+-------+---------+----------+----------+---------+
| Impairment of loan to | | - | - | 300 | - |
| subsidiary undertaking | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Decrease/(increase) in trade | | 1 | (29) | (98) | (223) |
| and other receivables | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| (Decrease)/increase in trade | | 4 | (16) | 14 | 10 |
| and other payables | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Tax paid | | (2) | - | (2) | - |
+--------------------------------+-------+---------+----------+----------+---------+
| Net cash outflow from | | (354) | (280) | (248) | (365) |
| operations | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| INVESTING ACTIVITIES | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Purchase of property, plant | | - | (2) | - | - |
| and equipment | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Acquisition of subsidiary | | - | (100) | - | (100) |
+--------------------------------+-------+---------+----------+----------+---------+
| Cash in subsidiary at | | - | 32 | - | - |
| acquisition | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Interest received | | 127 | 178 | 126 | 178 |
+--------------------------------+-------+---------+----------+----------+---------+
| Net cash inflow from investing | | 127 | 108 | 126 | 78 |
| activities | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| FINANCING ACTIVITIES | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Proceeds from issue of share | | - | 3,100 | - | 3,100 |
| capital | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Expenses of issue of share | | - | (167) | - | (167) |
| capital | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Net cash inflow from financing | | - | 2,933 | - | 2,933 |
| activities | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| (DECREASE)/INCREASE IN CASH | | (227) | 2,761 | (122) | 2,646 |
| AND CASH EQUIVALENTS | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| Cash and cash equivalents at | | 2,761 | - | 2,646 | - |
| start of year | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
| CASH AND CASH EQUIVALENTS AT | 11 | 2,534 | 2,761 | 2,524 | 2,646 |
| 31 JANUARY 2009 | | | | | |
+--------------------------------+-------+---------+----------+----------+---------+
Comparative figures comprise the period from incorporation on 17 October 2006 to
31 January 2008.
NOTES TO THE ACCOUNTS
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements have been prepared under the historical cost convention
in accordance with International Financial Reporting Standards, as adopted by
the European Union ("IFRS").
CONSOLIDATION
The consolidated financial statements incorporate those of Oxeco Plc and its
subsidiary undertaking, Oxray Ltd.
Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding of more
than half of the voting rights. The existence and effects of potential voting
rights are considered when assessing whether the Group controls the entity.
Subsidiaries are fully consolidated from the date control passes.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The costs of an acquisition are measured as the fair
value of the assets given, equity instruments issued and liabilities incurred or
assumed at the date of exchange, plus costs directly attributable to the
acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are initially measured at fair
value at acquisition date irrespective of the extent of any minority interest.
The difference between the cost of acquisition of shares in subsidiaries and the
fair value of the identifiable net assets acquired is capitalised as goodwill
and reviewed annually for impairment. Any deficiency of the cost of acquisition
below the fair value of identifiable net assets acquired (i.e. discount on
acquisition) is recognised directly in the income statement.
All intra-group transactions, balances, and unrealised gains on transactions
between Group companies are eliminated on consolidation. Subsidiaries'
accounting policies are amended where necessary to ensure consistency with the
policies adopted by the Group. All financial statements are made up to 31
January 2009.
As provided by section 230 of the Companies Act 1985, no income statement is
presented for Oxeco Plc. The loss after tax, but before impairment of investment
and receivable from subsidiary, dealt with in the income statement of the
Company for the year ended 31 January 2009 was GBP32,000 (period ended 31
January 2008: profit of GBP21,000), and a loss of GBP2,432,000 after impairment
of investment and receivable from subsidiary (period ended 31 January 2008:
profit of GBP21,000).
SEGMENTAL REPORTING
The Group's activities are considered to comprise one business and one
geographical segment which consists of the provision of molecular structure
determination software services to both industry and academic institutions in
the UK.
REVENUE
Revenue is measured at the fair value of the consideration received or
receivable in the normal course of business, net of discounts, VAT and other
sales related taxes and is recognised to the extent that it is probable that the
economic benefits associated with the transaction will flow in to the Group.
SOFTWARE DEVELOPMENT
All costs associated with the development of software are expensed to the income
statement as incurred until such time that the following criteria are met:
* it is technically feasible to complete the product;
* management intends to complete the product and use or sell it;
* there is an ability to use or sell the product;
* it can be demonstrated how the product will generate probable future economic
benefits;
* adequate technical, financial and other resources are available to complete the
development, use and sale of the product; and
* expenditure attributable to the product can be reliably measured.
Once the criteria are met, development costs directly attributable to the
product are recognised as intangible assets and amortised, once available for
use or sale, over their useful economic life.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at historical cost.
Depreciation is provided on all property, plant and equipment assets at rates
calculated to write each asset down to its estimated residual value evenly over
its expected useful life, as follows:-
Office furniture and equipment: over 3 years
INVESTMENTS
Investments in subsidiaries are stated in the balance sheet of the parent
company at cost less provision for any impairment.
INTANGIBLE ASSETS - GOODWILL
Goodwill arising on consolidation of subsidiaries represents the excess of fair
value of the cost of acquisition over the Group's interest in the fair value of
the identifiable assets and liabilities at the date of acquisition.
Goodwill on acquisition of subsidiaries is included in intangible assets and
allocated from acquisition date to each of the Group's cash-generating units
("CGU") that are expected to benefit from the business combination in which the
goodwill arose. The Group allocates goodwill to each business segment in each
country in which it operates
Goodwill is tested for impairment annually and whenever there is an indication
that the asset may be impaired.
IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
At each balance sheet date, the Group reviews the carrying amounts of its
property, plant and equipment and intangible assets to determine whether there
is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset, being the higher of
its fair value less costs to sell and its value in use, is estimated in order to
determine the extent of the impairment loss (if any).
Discounted cash flow valuation techniques are generally applied for assessing
value in use using 3-5 year forward looking cash flow projections and terminal
value estimates, together with discount rates appropriate to the risk of the
related asset or cash generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying
amount, the carrying amount of the asset is reduced to its recoverable amount.
An impairment loss is recognised as an expense immediately.
FINANCIAL ASSETS AND LIABILITIES
Trade and other receivables
Trade and other receivables do not carry any interest and are initially
recognised at fair value. They are subsequently measured at amortised cost using
the effective interest rate method, less any provision for impairment.
Impairment provisions are recognised when there is objective evidence that the
Group will be unable to collect all of the amounts due under the terms of the
receivable, the amount of such a provision being the difference between the net
carrying amount and the present value of the future expected cash flows
associated with the impaired receivable.
Trade and other payables
Trade and other payables are not interest bearing and are initially recognised
at fair value. They are subsequently measured at amortised cost using the
effective interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash at hand and deposits on a term of not
greater than 3 months.
Share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares are shown in equity as a deduction, net
of tax from proceeds.
PENSION COSTS
Contributions by the Group to personal pension schemes are charged to the income
statement on a straight-line basis as they become due.
TAXATION
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax payable is based on taxable profit for the year. The Group's liability
for current tax is calculated by using tax rates that have been enacted or
substantively enacted by the balance sheet date. Deferred tax is the tax
expected to be payable or recoverable on differences between the carrying amount
of assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable loss, and is accounted for using the
balance sheet liability method.
Deferred tax liabilities are recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Deferred tax is calculated at the tax rates that are expected
to apply to the year when the asset is realised or the liability is settled
based upon rates enacted and substantively enacted at the balance sheet date.
Deferred tax is charged or credited in the income statement, except when it
relates to items credited or charged directly to equity, in which case the
deferred tax is also dealt with in equity.
CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Actual results may differ
from these estimates.
The estimates and assumptions in relation to goodwill impairment reviews are
considered to have the most significant effect on the carrying amount of the
assets in the financial statements as discussed in note 8. The Group is required
to test at least annually whether goodwill has suffered any impairment. The
recoverable amount is determined using value in use calculations. The use of
this method requires the estimation of future cash flows and the selection of a
suitable discount rate in order to calculate the present value of these cash
flows.
ACCOUNTING STANDARDS AND INTERPRETATIONS NOT APPLIED
At the date of authorisation of these financial statements, the following
Standards and Interpretations relevant to the operations of the Group, which
have not yet been applied in these financial statements, were in issue but not
yet effective:
+---------+------------------------------------------------+--------------+
| | | Effective |
| | | for periods |
| | | commencing |
| | | on or after |
+---------+------------------------------------------------+--------------+
| IFRS 3 | Business Combinations (revision) | 1 July 2009 |
+---------+------------------------------------------------+--------------+
| IFRS 5 | Non-current Assets Held for Sale and | 1 July 2009 |
| | Discontinued Operations (amendments) | |
+---------+------------------------------------------------+--------------+
| IFRS 7 | Financial Instruments: Disclosures | 1 January |
| | (amendments) | 2009 |
+---------+------------------------------------------------+--------------+
| IFRS 8 | Operating Segments | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 1 | Presentation of Financial Statements | 1 January |
| | (revision) | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 1 | Presentation of Financial Statements | 1 January |
| | (amendments) | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 7 | Statement of Cash Flows (amendments) | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 8 | Accounting Policies, Changes in Accounting | 1 January |
| | Estimates and Errors (amendments) | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 10 | Events after the Reporting period (amendments) | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 18 | Revenue (amendments) | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 19 | Employee Benefits (amendments) | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 27 | Consolidated and Separate Financial Statements | 1 July 2009 |
| | (revision) | |
+---------+------------------------------------------------+--------------+
| IAS 27 | Consolidated and Separate Financial Statements | 1 January |
| | (amendments) | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 32 | Financial Instruments: Presentation | 1 January |
| | (amendments) | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 36 | Impairment of Assets (amendments) | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 38 | Intangible Assets (amendments) | 1 January |
| | | 2009 |
+---------+------------------------------------------------+--------------+
| IAS 39 | Financial Instruments: Recognition and | 1 January |
| | Measurement (amendments) | 2009 |
+---------+------------------------------------------------+--------------+
The Directors do not anticipate that the adoption of these Standards and
Interpretations will have a material impact on the financial statements of the
Group.
2) OPERATING LOSS
+---------------------------------------------+--------------+--------------+
| | Year ended | Period to |
| | 31 January | 31 January |
| | 2009 | 2008 |
+---------------------------------------------+--------------+--------------+
| | GBP000 | GBP000 |
+---------------------------------------------+--------------+--------------+
| Operating loss is stated after charging: | | |
+---------------------------------------------+--------------+--------------+
| Depreciation of property, plant and | 1 | 1 |
| equipment | | |
+---------------------------------------------+--------------+--------------+
| Operating lease rentals on land and | 12 | 4 |
| buildings | | |
+---------------------------------------------+--------------+--------------+
| Other operating lease rentals | 5 | 3 |
+---------------------------------------------+--------------+--------------+
| Software development consultancy costs | 41 | 76 |
+---------------------------------------------+--------------+--------------+
| Research costs | 33 | - |
+---------------------------------------------+--------------+--------------+
| Staff costs (see note 4) | 150 | 73 |
+---------------------------------------------+--------------+--------------+
| Auditor's remuneration: | | |
+---------------------------------------------+--------------+--------------+
| Fees payable to the Company's auditor for | 16 | 10 |
| the audit of the parent company and | | |
| consolidated financial statements | | |
+---------------------------------------------+--------------+--------------+
| Fees payable to the Company's auditor for | 12 | 7 |
| the audit of the financial statements of | | |
| the subsidiary | | |
+---------------------------------------------+--------------+--------------+
| Other services pursuant to legislation | - | 38 |
+---------------------------------------------+--------------+--------------+
| Total auditor's remuneration | 28 | 55 |
+---------------------------------------------+--------------+--------------+
3) FINANCE INCOME
+---------------------------------------------+--------------+--------------+
| | Year ended | Period to |
| | 31 January | 31 January |
| | 2009 | 2008 |
+---------------------------------------------+--------------+--------------+
| | GBP000 | GBP000 |
+---------------------------------------------+--------------+--------------+
| Bank interest receivable | 127 | 178 |
+---------------------------------------------+--------------+--------------+
4) STAFF COSTS
+---------------------------------------------+--------------+--------------+
| | Year ended | Period to |
| | 31 January | 31 January |
| | 2009 | 2008 |
+---------------------------------------------+--------------+--------------+
| | Number | Number |
+---------------------------------------------+--------------+--------------+
| The average monthly number of persons | | |
| (including Directors) employed by the Group | | |
| during the year was: | | |
+---------------------------------------------+--------------+--------------+
| Administration and management | 7 | 6 |
+---------------------------------------------+--------------+--------------+
| | Year ended | Period to |
| | 31 January | 31 January |
| | 2009 | 2008 |
+---------------------------------------------+--------------+--------------+
| | GBP000 | GBP000 |
+---------------------------------------------+--------------+--------------+
| The aggregate remuneration comprised: | | |
+---------------------------------------------+--------------+--------------+
| Wages and salaries | 130 | 70 |
+---------------------------------------------+--------------+--------------+
| Contributions to personal pension scheme | 6 | - |
+---------------------------------------------+--------------+--------------+
| Social security costs | 14 | 3 |
+---------------------------------------------+--------------+--------------+
| | 150 | 73 |
+---------------------------------------------+--------------+--------------+
| Director's remuneration included in the | | |
| aggregate remuneration above comprised: | | |
+---------------------------------------------+--------------+--------------+
| Emoluments for qualifying services | 49 | 44 |
+---------------------------------------------+--------------+--------------+
5) TAXATION
+---------------------------------------------+--------------+--------------+
| | Year ended | Period to |
| | 31 January | 31 January |
| | 2009 | 2008 |
+---------------------------------------------+--------------+--------------+
| The Group | GBP000 | GBP000 |
+---------------------------------------------+--------------+--------------+
| Current tax: | | |
+---------------------------------------------+--------------+--------------+
| UK corporation tax on losses for the | - | 5 |
| year/period | | |
+---------------------------------------------+--------------+--------------+
| Prior period adjustment | (3) | - |
+---------------------------------------------+--------------+--------------+
| | (3) | 5 |
+---------------------------------------------+--------------+--------------+
| Deferred tax: | | |
+---------------------------------------------+--------------+--------------+
| Origination and reversal of timing | - | - |
| differences | | |
+---------------------------------------------+--------------+--------------+
| Tax on loss on ordinary activities | (3) | 5 |
+---------------------------------------------+--------------+--------------+
| | | |
+---------------------------------------------+--------------+--------------+
| Factors affecting tax charge for the year | | |
+---------------------------------------------+--------------+--------------+
| The tax assessed for the year varies from | | |
| the standard rate of corporation tax as | | |
| explained below: | | |
+---------------------------------------------+--------------+--------------+
| Loss on ordinary activities before tax | (2,351) | (58) |
+---------------------------------------------+--------------+--------------+
| Loss on ordinary activities multiplied by | (659) | (17) |
| the standard rate of corporation tax 28% | | |
| (2008: 30%) | | |
+---------------------------------------------+--------------+--------------+
| Effects of: | | |
+---------------------------------------------+--------------+--------------+
| Expenses not deductable for tax purposes | 594 | 8 |
+---------------------------------------------+--------------+--------------+
| Prior period adjustment | 3 | - |
+---------------------------------------------+--------------+--------------+
| Unutilised tax losses | 65 | 14 |
+---------------------------------------------+--------------+--------------+
| Tax (credit)/charge for the year | (3) | 5 |
+---------------------------------------------+--------------+--------------+
The Group has estimated losses of GBP398,000 available for carry forward against
future trading profit (period to 31 January 2008: GBP163,000). The Group has not
recognised deferred tax assets of GBP111,000 relating to these losses as their
recoverability is uncertain (period to 31 January 2008: GBP45,000).
6) LOSS PER SHARE
Basic loss per share of 0.39p is based on the net loss for the year of
GBP2,348,000 divided by the weighted average number of ordinary shares in issue
during the year of 600,000,000, (period to 31 January 2008: loss of GBP63,000
divided by 456,050,955 ordinary shares). Fully diluted loss per share is the
same as basic loss per share.
Basic loss per share before impairment of goodwill of 0.04p (2008: 0.01p) is
based on the net loss for the year before impairment of goodwill of GBP228,000
divided by the weighted average number of ordinary shares in issue during the
year of 600,000,000 (period to 31 January 2008: loss of GBP63,000 divided by
456,050,955 ordinary shares).
7) PROPERTY, PLANT AND EQUIPMENT
+-------------------------------------------------+-------------+-----------+
| | Fixtures |
| | and |
| | equipment |
+---------------------------------------------------------------+-----------+
| The Group | | GBP000 |
+-------------------------------------------------+-------------+-----------+
| Cost | | |
+-------------------------------------------------+-------------+-----------+
| At 17 October 2006 | | - |
+-------------------------------------------------+-------------+-----------+
| Acquisition of subsidiary | | 1 |
+-------------------------------------------------+-------------+-----------+
| Additions | | 2 |
+-------------------------------------------------+-------------+-----------+
| At 31 January 2008 | | 3 |
+-------------------------------------------------+-------------+-----------+
| Additions | | 1 |
+-------------------------------------------------+-------------+-----------+
| At 31 January 2009 | | 4 |
+-------------------------------------------------+-------------+-----------+
| | | |
+-------------------------------------------------+-------------+-----------+
| Depreciation | | |
+-------------------------------------------------+-------------+-----------+
| At 17 October 2006 | | - |
+-------------------------------------------------+-------------+-----------+
| Charge for the period | | 1 |
+-------------------------------------------------+-------------+-----------+
| At 31 January 2008 | | 1 |
+-------------------------------------------------+-------------+-----------+
| Charge for the year | | 1 |
+-------------------------------------------------+-------------+-----------+
| At 31 January 2009 | | 2 |
+-------------------------------------------------+-------------+-----------+
| | | |
+-------------------------------------------------+-------------+-----------+
| Net book value | | |
+-------------------------------------------------+-------------+-----------+
| At 31 January 2009 | | 2 |
+-------------------------------------------------+-------------+-----------+
| At 31 January 2008 | | 2 |
+-------------------------------------------------+-------------+-----------+
| At 17 October 2006 | | - |
+-------------------------------------------------+-------------+-----------+
8) INTANGIBLE ASSETS - GOODWILL
+-------------------------------------------------+-------------+----------+
| The Group | | GBP000 |
+-------------------------------------------------+-------------+----------+
| Cost and net book value | | |
+-------------------------------------------------+-------------+----------+
| At 17 October 2006 | | - |
+-------------------------------------------------+-------------+----------+
| Arising on acquisition of subsidiary | | 2,120 |
+-------------------------------------------------+-------------+----------+
| At 31 January 2008 | | 2,120 |
+-------------------------------------------------+-------------+----------+
| Impairment | | (2,120) |
+-------------------------------------------------+-------------+----------+
| At 31 January 2009 | | - |
+-------------------------------------------------+-------------+----------+
Goodwill of GBP2,120,000 arose on the acquisition of Oxray Limited in June 2007.
Since that time Oxray has substantially completed the development of its novel
X-ray crystallography structure determination software but the results of
marketing efforts to establish a solid customer base have been disappointing. In
addition, Oxray has not been able to strengthen and develop its product service
offering through licensing- in IP and making bolt-on acquisitions in this field
as originally envisaged.
The Directors have undertaken an impairment review taking into account the above
factors and consider that this intangible goodwill asset has been impaired to a
nil value. Consequentially the goodwill associated with this company has been
written off in full generating an exceptional expense of GBP2,120,000 in the
year.
9)INVESTMENT IN SUBSIDIARY
+-------------------------------------------------+-------------+----------+
| The Company | | GBP000 |
+-------------------------------------------------+-------------+----------+
| Cost and book value | | |
+-------------------------------------------------+-------------+----------+
| At 17 October 2006 | | - |
+-------------------------------------------------+-------------+----------+
| Additions | | 2,100 |
+-------------------------------------------------+-------------+----------+
| At 31 January 2008 | | 2,100 |
+-------------------------------------------------+-------------+----------+
| Impairment (see note 8) | | (2,100) |
+-------------------------------------------------+-------------+----------+
| At 31 January 2009 | | - |
+-------------------------------------------------+-------------+----------+
At 31 January 2009 the Company had an investment in the following subsidiary
where it holds 50% or more of the issued share capital. Oxray Limited is
incorporated in England and Wales and operates wholly or mainly in the country
of incorporation.
+-------------------+------------+----------------------+-----------+-----------+
| | | | Share of issued |
| | | | ordinary |
| | | | share capital and |
| | | | voting rights |
+-------------------+------------+----------------------+-----------------------+
| Undertaking | Sector | Website | 31 | 31 |
| | | | January | January |
| | | | 2009 | 2008 |
+-------------------+------------+----------------------+-----------+-----------+
| | | | % | % |
+-------------------+------------+----------------------+-----------+-----------+
| Oxray Ltd | Technology | www.oxray.com | 100 | 100 |
+-------------------+------------+----------------------+-----------+-----------+
All subsidiaries have been included in the consolidated financial statements.
10) TRADE AND OTHER RECEIVABLES
+---------------------------------+----------+-----------+----------+-----------+
| | Group | Group | Company | Company |
+---------------------------------+----------+-----------+----------+-----------+
| | 2009 | 2008 | 2009 | 2008 |
+---------------------------------+----------+-----------+----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+-----------+----------+-----------+
| Trade and other receivables | 6 | 6 | 4 | - |
+---------------------------------+----------+-----------+----------+-----------+
| Prepayments and accrued income | 22 | 23 | 17 | 23 |
+---------------------------------+----------+-----------+----------+-----------+
| Amounts owed by subsidiary | - | - | - | 200 |
| undertaking | | | | |
+---------------------------------+----------+-----------+----------+-----------+
| | 28 | 29 | 21 | 223 |
+---------------------------------+----------+-----------+----------+-----------+
The Directors consider that the carrying amount of trade and other receivables
approximates to their fair value.
11) RISK MANAGEMENT OF FINANCIAL ASSETS AND LIABILITIES
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able
to continue as a going concern while maximising the return to stakeholders. The
Group's overall strategy remains unchanged from 2008 to minimise costs and
liquidity risk.
The capital structure of the Group consists of equity attributable to equity
holders of the parent, comprising issued share capital, reserves and retained
earnings as disclosed in notes 13 and 14 and in the Group Statement of Changes
in Equity.
The Group is exposed to a number of risks through its normal operations, the
most significant of which are market, credit and liquidity risks. The management
of these risks is vested in the Board of Directors.
Categorisation of financial instruments
+-------------------------------------+-------------+-------------+-----------+
| Financial assets/(liabilities) | | | |
+-------------------------------------+-------------+-------------+-----------+
| | Loans and | Financial | Total |
| | receivables | liabilities | |
| | | at | |
| | | amortised | |
| | | cost | |
+-------------------------------------+-------------+-------------+-----------+
| | GBP000 | GBP000 | GBP000 |
+-------------------------------------+-------------+-------------+-----------+
| At 31 January 2009 | | | |
+-------------------------------------+-------------+-------------+-----------+
| Trade and other receivables | 6 | - | 6 |
+-------------------------------------+-------------+-------------+-----------+
| Cash and cash equivalents | 2,534 | - | 2,534 |
+-------------------------------------+-------------+-------------+-----------+
| Trade and other payables | - | (38) | (38) |
+-------------------------------------+-------------+-------------+-----------+
| TOTAL | 2,540 | (38) | 2,502 |
+-------------------------------------+-------------+-------------+-----------+
| At 31 January 2008 | | | |
+-------------------------------------+-------------+-------------+-----------+
| Trade and other receivables | 6 | - | 6 |
+-------------------------------------+-------------+-------------+-----------+
| Cash and cash equivalents | 2,761 | - | 2,761 |
+-------------------------------------+-------------+-------------+-----------+
| Trade and other payables | - | (35) | (35) |
+-------------------------------------+-------------+-------------+-----------+
| TOTAL | 2,767 | (35) | 2,732 |
+-------------------------------------+-------------+-------------+-----------+
Disclosures relating to financial instruments are only provided on a Group
consolidated basis as the only Company balance that is materially different is
the 2008 amount owed by the subsidiary undertaking, which is categorised as
loans and receivables. Therefore the Directors do not believe there is any
material benefit in providing this additional information for the Company.
Management of market risk
The most significant area of market risk to which the Group and Company are
exposed is interest risk.
As the Group has no significant borrowings its risk is limited to the reduction
of interest received on cash surpluses held. This risk is mitigated by using
fixed-rate deposit accounts. The principal impact to the Group is the result of
interest-bearing cash and cash equivalent balances held as set out below:
+-------------------------+--------+----------+--------+--+--------+----------+--------+
| | 31 January 2009 | | 31 January 2008 |
+-------------------------+----------------------------+--+----------------------------+
| | Fixed | Floating | Total | | Fixed | Floating | Total |
| | rate | rate | | | rate | rate | |
+-------------------------+--------+----------+--------+--+--------+----------+--------+
| | GBP000 | GBP000 | GBP000 | | GBP000 | GBP000 | GBP000 |
+-------------------------+--------+----------+--------+--+--------+----------+--------+
| Cash and cash | 1,524 | 1,010 | 2,534 | | 2,111 | 650 | 2,761 |
| equivalents | | | | | | | |
+-------------------------+--------+----------+--------+--+--------+----------+--------+
The impact of a 10 per cent. increase/decrease in the average base rates on the
total cash and cash equivalents balances equates to GBP19,000 (period ended 31
January 2008: GBP51,000).
Management of credit risk
The Group and Company's principal financial assets are bank balances and cash.
The Group deposits surplus liquid funds with counterparty banks that have high
credit ratings.
The maximum exposure to credit risk on the Group's financial assets is
represented by their carrying amounts as outlined in the categorisation of
financial instruments table above.
The Group does not consider that any changes in fair value of financial assets
or liabilities in the year are attributable to credit risk.
No aged analysis of financial assets is presented as no significant financial
assets are past due at the reporting date with the exception of trade
receivables and other receivables, which the Directors do not consider to be
material.
Management of liquidity risk
The Group seeks to manage liquidity risk by regularly reviewing cash flow
budgets and forecasts to ensure that sufficient liquidity is available to meet
foreseeable needs and to invest cash assets safely and profitably. The Group
deems there is sufficient liquidity for the foreseeable future.
The Group and the Company had cash and cash equivalents at 31 January 2009 of
GBP2,534,000 (2008: GBP2,761,000) and GBP2,524,000 (2008: GBP2,646,000)
respectively.
As at 31 January 2009 all financial assets and liabilities mature for payment
within one year.
12) TRADE AND OTHER PAYABLES
+---------------------------------+----------+-----------+----------+-----------+
| | Group | Group | Company | Company |
+---------------------------------+----------+-----------+----------+-----------+
| | 2009 | 2008 | 2009 | 2008 |
+---------------------------------+----------+-----------+----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+-----------+----------+-----------+
| Trade payables | 12 | 17 | 8 | - |
+---------------------------------+----------+-----------+----------+-----------+
| Other taxes and social security | 4 | 2 | 1 | - |
+---------------------------------+----------+-----------+----------+-----------+
| Accruals | 26 | 18 | 14 | 10 |
+---------------------------------+----------+-----------+----------+-----------+
| | 42 | 37 | 23 | 10 |
+---------------------------------+----------+-----------+----------+-----------+
The Directors consider that the carrying amount of trade and other payables
approximates to their fair value.
13) SHARE CAPITAL
The Group and the Company
+-------------------------------------------------+---------------+------------+
| | Number | GBP000 |
+-------------------------------------------------+---------------+------------+
| Authorised ordinary shares of 0.1p | | |
+-------------------------------------------------+---------------+------------+
| At 31 January 2008 and 31 January 2009 | 1,000,000,000 | 1,000 |
+-------------------------------------------------+---------------+------------+
| Allotted, issued and fully paid ordinary shares | | |
| of 0.1p | | |
+-------------------------------------------------+---------------+------------+
| At 17 October 2006 | - | - |
+-------------------------------------------------+---------------+------------+
| Proceeds from issue of shares | 600,000,000 | 600 |
+-------------------------------------------------+---------------+------------+
| At 31 January 2008 and 31 January 2009 | 600,000,000 | 600 |
+-------------------------------------------------+---------------+------------+
14) SHARE PREMIUM ACCOUNT
The Group and the Company
+-------------------------------------------------+-------------+------------+
| | | GBP000 |
+-------------------------------------------------+-------------+------------+
| At 17 October 2006 | | - |
+-------------------------------------------------+-------------+------------+
| Premium on issue of shares in the period | | 4,500 |
+-------------------------------------------------+-------------+------------+
| Expenses of issue of shares | | (167) |
+-------------------------------------------------+-------------+------------+
| At 31 January 2008 and 31 January 2009 | | 4,333 |
+-------------------------------------------------+-------------+------------+
15) COMMITMENTS UNDER OPERATING LEASES
At 31 January 2009, the Company had no commitments under non-cancellable leases
and the Group had commitments falling due as follows:
+-------------------------------------------------+--------------+-----------+
| | 2009 | 2008 |
+-------------------------------------------------+--------------+-----------+
| Motor Vehicles | GBP000 | GBP000 |
+-------------------------------------------------+--------------+-----------+
| Not later than one year | - | 5 |
+-------------------------------------------------+--------------+-----------+
| Later than one year and not later than five | - | 5 |
| years | | |
+-------------------------------------------------+--------------+-----------+
| Total commitments | - | 10 |
+-------------------------------------------------+--------------+-----------+
16) RELATED PARTY TRANSACTIONS
Trading transactions
During the year the Company entered into the following transactions with Ora
Capital Limited which as at 31 January 2009 holds 45.25per cent. of the
Company's issued share capital:
+---------------------------------+----------+-----------+----------+-----------+
| | Group | Group | Company | Company |
+---------------------------------+----------+-----------+----------+-----------+
| | 2009 | 2008 | 2009 | 2008 |
+---------------------------------+----------+-----------+----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+-----------+----------+-----------+
| Consultancy fees charged by Ora | 12 | 18 | 12 | 18 |
| Capital Limited in the year | | | | |
+---------------------------------+----------+-----------+----------+-----------+
The outstanding balance owed to Ora Capital Limited at the balance sheet date
was GBP1,150 (2008: GBP1,175).
During the year, Oxray Limited borrowed GBP100,000 from the Company for working
capital purposes (period to 31 January 2008: GBP200,000). The loan is unsecured
and non-interest bearing and it is repayable on demand. The outstanding balance
at 31 January 2009 was GBP300,000 (2008: GBP200,000), which was fully provided
against in the year, resulting in a charge to the Company's income statement of
GBP300,000.
Transactions with Key Management Personnel
The Group's key management personnel comprised only the Directors of the
Company.
During the year Group companies entered into the following transactions in which
the Directors had an interest:
i. Directors' remuneration.
The remuneration of the individual Directors are shown below
+---------------------------------+----------+------------+---------+-------------------+
| | 2009 | 2008 |
+---------------------------------+---------------------------------+-------------------+
| Short-term employment benefits | Salaries | Employer's | Total | Total |
| | & fees | national | | |
| | | insurance | | |
+---------------------------------+----------+------------+---------+-------------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------+----------+------------+---------+-------------------+
| Jussi Westergren* | - | - | - | 6 |
+---------------------------------+----------+------------+---------+-------------------+
| Michael Bretherton | 10 | 1 | 11 | 11 |
+---------------------------------+----------+------------+---------+-------------------+
| David Norwood** | 9 | 1 | 10 | 11 |
+---------------------------------+----------+------------+---------+-------------------+
| Professor Stephen Davies | 10 | 1 | 11 | 6 |
+---------------------------------+----------+------------+---------+-------------------+
| Professor William Graham | 10 | 1 | 11 | 11 |
| Richards | | | | |
+---------------------------------+----------+------------+---------+-------------------+
*resigned on 18 March 2009, fees of GBP10,000 were paid to Pembroke House
Technologies Ltd. in the year on behalf of Jussi Westergren (2008: GBPnil)
**resigned on 31 December 2008
ii. Directors' had investments in Ora Capital Limited, which holds 45.25 per
cent. of the Company's share
capital, as follows as at 31 January 2009:
+------------------------------------------------------+------------------+
| Director | % of issued |
| |share capital of |
| | Ora held |
+------------------------------------------------------+------------------+
| Michael Bretherton | 0.06 % |
+------------------------------------------------------+------------------+
Michael Bretherton is a Director of Ora Capital Limited.
17) ULTIMATE CONTROLLING PARTY
The Directors do not believe that there is an ultimate controlling party.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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