TIDMHML
RNS Number : 0795F
Henderson Morley PLC
06 January 2010
?
6 January 2010
HENDERSON MORLEY PLC
(AIM: HML)
("HENDERSON MORLEY" or "THE COMPANY")
INTERIM RESULTS FOR THE SIX MONTHS TO 31 OCTOBER 2009
The Board of Henderson Morley plc, the AIM quoted biotechnology company,
announces its interim results for the six months to 31 October 2009.
KEY POINTS
* Continues to work towards becoming a 'Pure Play vaccine company by 2011
* The Company is in negotiation for the divestment of some of its ICVT Human
application portfolio
* Over the last six months the Company has made a number of grant applications
which could secure non-dilutive funds for its research projects
* Koi Herpes Virus ('KHV) vaccine field study produced positive results utilising
two successful candidates
* Successfully produced vaccine candidates for Epstein Barr Virus ('EBV)
* Collaborative agreement with the University of Georgia Research Foundation to
examine L-particles as an adjuvant for naked DNA vaccines against flu virus
infections, including H1N1 (swine flu)
POST PERIOD HIGHLIGHTS
* Grant application submitted to the Queensland Government Research Industry
Partnership Programme ("RIPP") to aid progress of Cytomegalovirus vaccine
development programme
* Appointment of Professor Anant Sharma to the Scientific Advisory Board
* The Company has applied for Orphan Drug Status for the slow release injectable
formulation of ICVT for use in Recurrent Respiratory Papillomatosis (RRP)
* GBP273,751 was received in November 2009 from the placing made on 20 October
2009
Executive Chairman Andrew Knight said: "This has been a busy six months for the
Company as we continue with our strategy of becoming a 'Pure Play' vaccine
company.
"We are working towards the divestment of some of our anti-viral
platform. Negotiations with a potential purchaser for some of our ICVT Human
technologies have been extended for a further 60 days we believe that we remain
on course to achieve the divestment within this period.
"We are excited about the prospects for the Company as a 'Pure Play' vaccine
company and look forward to the future with confidence."
=--ENDS---
ENQUIRIES:
HENDERSON MORLEY PLC0121 442 4600
Andrew Knight, Chairman
BISHOPSGATE COMMUNICATIONS LTD0207 562 3350
(Public Relations)
Maxine Barnes
Nick Rome
BREWIN DOLPHIN INVESTMENT BANKING0845 213 4726
(Nominated Adviser)
Neil Baldwin
RIVINGTON STREET CORPORATE FINANCE0207 562 3380
Dru Edmonstone
Notes to Editors:
Henderson Morley was founded in 1996 with the objective of developing its anti
viral application (Ionic Contra Viral Therapy (ICVT). ICVT is the Lead Platform
and has been developed in-house and HML wholly owns the patent IPR.
This report is available on the Company's website at www.henderson-morley.com.
Copies are available upon request from the Company's registered office at
Metropolitan House, 2 Salisbury Road, Moseley, Birmingham, West Midlands, B13
8JS.
CHAIRMAN'S STATEMENT
Financial Summary
Turnover for the period under review was GBP1,821 (2008: GBP41,128) which, after
expenses and R&D costs, showed a pre tax loss of GBP579,502 (2008: GBP547,984).
Cash at Bank as at 31 October 2009 was GBP94,717 (2008: GBP203,786). The total
number of shares in issue is now 1,154,722,463.
Overview
The six months under review has been another busy period and includes the
important strategic decision to refocus the Company as a 'Pure Play vaccine
company. The vaccine market is growing rapidly and according to Datamonitor (Dec
2008), the global vaccine market grew by 46% between 2006 and 2007, and this
growth continues to outpace other areas of the pharmaceutical market.
Considerable growth is also predicted in cancer vaccines and cancer
immunotherapies.
In addition, post the period end, we appointed Professor Anant Sharma to the
Scientific Advisory Board. Professor Sharma has a wealth of experience,
especially in the field of corneal surgery and disease. He currently acts as a
consultant ophthalmic surgeon at the Moorfields Eye Hospital, and is Visiting
Professor at Carnfield University. It is anticipated that Professor Sharma will
play an active role in the continued development of the ophthalmic indications
of ICVT.
Furthermore, on 25 November (post period end) the Company announced that it has
applied for Orphan Drug status for the slow release injectable formulation of
ICVT for use in Recurrent Respiratory Papillomatosis (RRP).
If Orphan Drug Status is granted the slow release injectable formulation of ICVT
could receive numerous benefits including protocol assistance, fee waivers and
scientific advice during its approval process. The Company expects to receive a
decision on this application in early 2010.
Animal Health Division
Koi Herpes Virus ("KHV")
In August, we announced that the KHV vaccine field study had now been completed
and had produced positive results.
Two of the vaccine groups showed significant responses to the vaccine. In these
two groups 96% and 93% of the vaccinated fish survived and remained healthy. The
two successful vaccine candidates have been fully analysed by the Companys
in-house scientists.
In 2006 the World Organisation of Animal Health gave KHV disease 'Notifiable
Disease' status. As a Notifiable Disease there is a legal obligation to report
any suspicion of a clinical outbreak of KHV disease to the Fish Health
Inspectorate (FHI). KHV is therefore a pathogen of growing economic and
environmental importance.
Human Health Division
Sale of Ionic Contra viral Therapy ("ICVT")
We received a Letter of
Intent ("LOI") in early October from a specialist Pharmaceutical company based
outside the EU, for the purchase of some of Henderson Morley's human
applications of ICVT. It was originally expected that a transaction would be
completed within 3 months however the Company has now agreed with this potential
purchaser to extend the LOI period for a further 60 days from 8 January
2010.
Cytomegalovirus ("CMV") and Grant Applications
National Institute of Health Grant Application
We are continuing to work closely with the Australian Centre for Vaccine
Development ("ACVD"), and we have submitted a joint grant application to the US
Government funded National Institute of Health ("NIH").
The grant has been submitted with the goal of securing non-diluted funding to
further develop the Cytomegalovirus ("CMV") vaccine candidate (part of the PREPS
and L-particles vaccine platform). The NIH has specifically highlighted CMV as a
disease of importance and has announced a "Request for Applications"
specifically in the field of vaccines against disease considered to be of
significant importance.
If successful, this grant could be worth up to $500,000 (US) per annum for five
years.
Queensland Government Research Industry Partnership Programme Grant
Application
Post period end (5 November), we submitted a second grant application to the
Queensland Government Research Industry Partnership Programme ("RIPP") in order
to assist with our CMV vaccine development programme. This application has been
written in conjunction with the Queensland Institute of Medical Research
("QIMR").
The RIPP programme aims to facilitate the development of new or improved
products processes and systems that will achieve a commercial return or deliver
a public good within four years.
If successful, this grant application could be worth approximately GBP1.35m
(GBP) over a three year period and it is expected that the Company will be
notified of the applications outcome by Spring 2010.
This grant is supplementary to the NIH grant application made in August 2009,
and the Company expects that other grants will be applied for during the early
part of 2010.
Collaborative Agreement with the University of Georgia Research Foundation
In September we announced that we signed a collaborative agreement with the
University of Georgia Research Foundation, under the leadership of Professor
Ralph Tripp, (Professor of Infectious Diseases at the University of Georgia).
The agreement is to study PREPS and L-particles as a vaccine adjuvant for naked
DNA vaccine against flu virus infections. This study will include the H1N1
strain of flu which is commonly known as swine flu.
These will be the first studies to examine the use of PREPS and L-particles as a
vaccine adjuvant in influenza and will be carried out at no extra cost to the
Company.
Outlook
This has been a busy six months for the Company as we continue with our strategy
of becoming a 'Pure Play vaccine company.
We are continuing to work towards the divestment of some of our anti-viral
platform.
Although negotiations with a potential purchaser for some of our ICVT Human
technologies have been extended for a further 60 days we believe that we remain
on course to achieve the divestment within this period.
We are excited about the prospects for the future of the Company as a 'Pure
Play vaccine company and look forward to the future with confidence.
ANDREW KNIGHT
Executive Chairman
HENDERSON MORLEY PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
For the six month period to 31 October 2009
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | Note | 6 months | 6 months | 12 months |
| | | Ended | ended | ended |
| | | 31 October | 31 October | 30 April |
| | | 2009 | 2008 | 2009 |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | Unaudited | Unaudited | Audited |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Continuing operations | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Revenue | | 1,821 | 41,128 | 80,019 |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Cost of sales | | (1,087) | (775) | - |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Gross profit | | 734 | 40,353 | 80,019 |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Research and development | | (273,348) | (247,941) | (451,725) |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Other administrative expenses | | (306,655) | (347,435) | (741,125) |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Results from operating activities | | (579,269) | (555,023) | (1,112,831) |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Finance income | | 20 | 8,185 | 9,780 |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Finance costs | | (253) | (1,146) | (55) |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Net finance income | | (233) | 7,039 | 9,725 |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Loss before taxation | | (579,502) | (547,984) | (1,103,106) |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Research and development tax credit | | 50,537 | 57,842 | 92,798 |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Loss from continuing operations | | (528,965) | (490,142) | (1,010,308) |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| Basic and diluted loss per ordinary | 4 | (0.06p) | (0.09p) | (0.17p) |
| share | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
| | | | | |
+-----------------------------------------+--------+----------------------+-----------------+----------------+
All amounts relate to continuing activities.
HENDERSON MORLEY PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
For the six month period to 31 October 2009
+---------------+--------------+-------------+-------------+
| | At | At | At |
| | 31 | 31 | 30 |
| | October | October | April |
| | 2009 | 2008 | 2009 |
| | Unaudited | Unaudited | Audited |
+---------------+--------------+-------------+-------------+
| | | GBP | GBP |
+---------------+--------------+-------------+-------------+
| Non | | | |
| current | | | |
| assets | | | |
+---------------+--------------+-------------+-------------+
| Property, | 105,819 | 140,276 | 117,896 |
| plant and | | | |
| equipment | | | |
+---------------+--------------+-------------+-------------+
| Goodwill | 58,964 | 58,964 | 58,964 |
+---------------+--------------+-------------+-------------+
| Intangible | 23,904 | 29,216 | 26,560 |
| assets | | | |
+---------------+--------------+-------------+-------------+
| Total | 188,687 | 228,456 | 203,420 |
| non | | | |
| current | | | |
| assets | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
| Current | | | |
| assets | | | |
+---------------+--------------+-------------+-------------+
| Inventories | 200 | 200 | 200 |
+---------------+--------------+-------------+-------------+
| Trade | 37,100 | 53,913 | 73,353 |
| and | | | |
| other | | | |
| receivables | | | |
+---------------+--------------+-------------+-------------+
| Called | 300,000 | - | - |
| up | | | |
| share | | | |
| capital | | | |
| not | | | |
| paid | | | |
+---------------+--------------+-------------+-------------+
| Tax | 49,091 | 156,699 | 92,798 |
| receivable | | | |
+---------------+--------------+-------------+-------------+
| Cash | 94,717 | 203,786 | 49,999 |
| and | | | |
| cash | | | |
| equivalents | | | |
+---------------+--------------+-------------+-------------+
| Total | 481,108 | 414,598 | 216,350 |
| current | | | |
| assets | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
| Total | 669,795 | 643,054 | 419,770 |
| assets | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
| Current | | | |
| liabilities | | | |
+---------------+--------------+-------------+-------------+
| Bank | - | - | - |
| loans | | | |
| and | | | |
| overdrafts | | | |
+---------------+--------------+-------------+-------------+
| Trade | (184,237) | (177,705) | (201,251) |
| and | | | |
| other | | | |
| payables | | | |
+---------------+--------------+-------------+-------------+
| Total | (184,237) | (177,705) | (201,251) |
| current | | | |
| liabilities | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
| Net | 485,558 | 465,349 | 218,519 |
| assets | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
| Shareholders' | | | |
| Equity | | | |
+---------------+--------------+-------------+-------------+
| Called | 1,443,404 | 719,078 | 901,578 |
| up | | | |
| share | | | |
| capital | | | |
+---------------+--------------+-------------+-------------+
| Share | 6,652,525 | 6,307,511 | 6,398,347 |
| premium | | | |
+---------------+--------------+-------------+-------------+
| Retained | (7,610,371) | (6,561,240) | (7,081,406) |
| Earnings | | | |
+---------------+--------------+-------------+-------------+
| Total | 485,558 | 465,349 | 218,519 |
| Equity | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
| | | | |
+---------------+--------------+-------------+-------------+
HENDERSON MORLEY PLC
STATEMENT OF CHANGES IN EQUITY
For the six month period to 31 October 2009
+--------------------------------+-----------+---------------+---------------+------------+
| | Called | Share | Profit and | Total |
| | up | premium | loss | equity |
| | share | account | account | |
| | capital | | | |
+--------------------------------+-----------+---------------+---------------+------------+
| | GBP | GBP | GBP | GBP |
+--------------------------------+-----------+---------------+---------------+------------+
| At start of period | 901,578 | 6,398,347 | (7,081,406) | 218,519 |
+--------------------------------+-----------+---------------+---------------+------------+
| Issue of shares (net of issue | 541,826 | 254,178 | - | 796,004 |
| costs) | | | | |
+--------------------------------+-----------+---------------+---------------+------------+
| Loss for the period | - | - | (528,965) | (528,965) |
+--------------------------------+-----------+---------------+---------------+------------+
| | ________ | _____________ | _____________ | __________ |
+--------------------------------+-----------+---------------+---------------+------------+
| At end of period | 1,443,404 | 6,652,525 | (7,610,371) | 485,558 |
+--------------------------------+-----------+---------------+---------------+------------+
For the 12 months ended 30 April 2009
+--------------------------------+---------+------------+-------------+-------------+
| | Called | Share | Profit and | Total |
| | up | premium | loss | equity |
| | share | account | account | |
| | capital | | | |
+--------------------------------+---------+------------+-------------+-------------+
| | GBP | GBP | GBP | GBP |
+--------------------------------+---------+------------+-------------+-------------+
| At start of period | 719,078 | 6,307,511 | (6,071,098) | 955,491 |
+--------------------------------+---------+------------+-------------+-------------+
| Issue of shares (net of issue | 182,500 | 90,836 | - | 273,336 |
| costs) | | | | |
+--------------------------------+---------+------------+-------------+-------------+
| Loss for the year | - | - | (1,010,308) | (1,010,308) |
+--------------------------------+---------+------------+-------------+-------------+
| | | | | |
+--------------------------------+---------+------------+-------------+-------------+
| At end of period | 901,578 | 6,398,347 | (7,081,406) | 218,519 |
+--------------------------------+---------+------------+-------------+-------------+
For the six months ended 31 October 2008
+-------------------------------+----------+------------+-------------+-----------+
| | Called | Share | Profit and | Total |
| | up | premium | loss | equity |
| | share | account | account | |
| | capital | | | |
+-------------------------------+----------+------------+-------------+-----------+
| | GBP | GBP | GBP | GBP |
+-------------------------------+----------+------------+-------------+-----------+
| At start of period | 719,078 | 6,307,511 | (6,071,098) | 955,491 |
+-------------------------------+----------+------------+-------------+-----------+
| Loss for the period | - | - | (490,142) | (490,142) |
+-------------------------------+----------+------------+-------------+-----------+
| | | | | |
+-------------------------------+----------+------------+-------------+-----------+
| At end of period | 719,078 | 6,307,511 | (6,561,240) | 465,349 |
+-------------------------------+----------+------------+-------------+-----------+
On 29th June 2009 the Company issued 283,095,500 shares and on 9th July 2009
350,000 shares following an open offer raised GBP626,737 gross, GBP522,252 after
expenses.
On 20th October 2009 the Company issued 150,025,000 shares in a placing raising
GBP300,000 gross, GBP273,751 after expenses.
HENDERSON MORLEY PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
For the six month period to 31 October 2009
+-------------------------------------+------+-----------+-------------+-------------+
| | Note | 6 months | 6 months | 12 |
| | | Ended 31 | ended | months |
| | | October | 31 | ended 30 |
| | | 2009 | October | April |
| | | Unaudited | 2008 | 2009 |
| | | | Unaudited | Audited |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | GBP |
+-------------------------------------+------+-----------+-------------+-------------+
| Cash flow from operating activities | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Cash generated from operations | 5 | (537,608) | (501,298) | (1,021,999) |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Interest paid | | (253) | (1,146) | (55) |
+-------------------------------------+------+-----------+-------------+-------------+
| Research and development tax credit | | 94,244 | - | 98,857 |
| received | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Net cashflow from operating | | (443,617) | (502,444) | (923,197) |
| activities | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Cashflow from investing activities | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Purchases of property, plant and | | (5,875) | (6,100) | (15,549) |
| equipment | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Sale of tangible fixed assets | | - | 3,328 | 3,328 |
+-------------------------------------+------+-----------+-------------+-------------+
| Interest received | | 20 | 8,185 | 9,780 |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Net cash inflow/outflow from | | (5,855) | 5,413 | (2,441) |
| investing activities | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Cash flow from financing activities | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Proceeds from issue of new shares | | 496,004 | - | 273,336 |
| net of expenses | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Amount introduced by Directors | | (1,814) | 1,031 | 2,515 |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Net cash inflow from financing | | 494,190 | 1,031 | 275,851 |
| activities | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| (Decrease) in cash and cash | | 44,718 | (496,000) | (649,787) |
| equivalents) | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Cash and cash equivalents at | | 49,999 | 699,786 | 699,786 |
| beginning of period | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
| Cash and cash equivalents at end of | | 94,717 | 203,786 | 49,999 |
| period | | | | |
+-------------------------------------+------+-----------+-------------+-------------+
GBP273,751 was received in November 2009 from the placing made on the 20th
October 2009.
1. BASIS OF PREPARATION OF INTERIM REPORT
The information for the period ended 31 October 2009 is not audited and does not
constitute statutory accounts. The statutory accounts for the year ended 30
April 2009 were given an unqualified audit report. A copy of the statutory
accounts for that year has been delivered to the Register of Companies. The
interim accounts for the six month period to 31 October 2008 were also
unaudited.
2. ACCOUNTING POLICIES
The financial report has been prepared using accounting policies consistent with
International Financial Reporting Standards (IFRS).
The report has been prepared on a going concern basis in accordance with
International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB") as well as all interpretations
issued by the International Financial Reporting Interpretations Committee
("IFRIC").The group has not availed itself of early adoption options in such
standards and interpretations.
The validity of the going concern basis will depend on the ability of the
directors to obtain further working capital to support the activities of the
subsidiary undertaking, Henderson Morley Research and Development Limited.
The financial statements have been prepared under the historical cost basis and
are presented in sterling. The principal accounting policies adopted are set out
below:
New standards and Interpretations of existing standards that are not yet
effective and have not been early adopted by the group.
International Accounting Standards (IFRS/IAS)
+-------------+----------------------------------------------------------------------------+
| IFRS 2 | Share Based Payments |
+-------------+----------------------------------------------------------------------------+
| IFRS 3 | Business Combinations |
+-------------+----------------------------------------------------------------------------+
| IFRS 5 | Non current assets held for sale and discontinued operations |
+-------------+----------------------------------------------------------------------------+
| IFRS 8 | Operating Segments, Segment information should be presented on the same |
| | basis as that used for internal reporting purposes. |
+-------------+----------------------------------------------------------------------------+
| IAS1 | Presentation of Financial Statements (revised 2007) |
+-------------+----------------------------------------------------------------------------+
| IAS16 | Property plant and equipment |
+-------------+----------------------------------------------------------------------------+
| IAS 26 | Impairment of assets |
+-------------+----------------------------------------------------------------------------+
| IAS 27 | Group and Separate Financial Statements |
+-------------+----------------------------------------------------------------------------+
| IAS 28 | Investments in associates |
+-------------+----------------------------------------------------------------------------+
| IAS 32 | Financial Instruments: Disclosure and Presentation |
+-------------+----------------------------------------------------------------------------+
IFRIC Interpretations
+-------------+----------------------------------------------------------------------------+
| IFRIC 11 | Group and Treasury Share Transactions |
+-------------+----------------------------------------------------------------------------+
| IFRIC 12 | Service Concessions Arrangements |
+-------------+----------------------------------------------------------------------------+
| IFRIC 13 | Customer Loyalty programmes |
+-------------+----------------------------------------------------------------------------+
The Group does not anticipate that the adoption of these standards and
interpretations will have a material impact on the Group's financial statements
on adoption.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up to
each period end. Control is achieved where the Company has the power to govern
the financial and operating policies so as to obtain benefits from its
activities.
The group does not disclose transactions or balances between Group entities that
are wholly eliminated on consolidation.
Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided in
the normal course of business, net of discounts, VAT and other sales-related
taxes, and amounts received in accordance with licensing agreements.
Research and Development
The group considers that the regulatory, technical and market uncertainties
inherent in the development of new products mean that internal development costs
should not be capitalised as intangible non-current assets until commercial
viability of a project is demonstratable and appropriate resource is in place to
launch the products. Except in those circumstances, research and development
expenditure is expensed as incurred.
Taxation
The tax charge or credit represents the sum of the current and
deferred tax.
Current tax is provided as amounts expected to be paid or recovered using the
tax rates and laws 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 amounts of assets and liabilities in the financial
statements and corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally 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. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition of other assets
and liabilities in a transaction that affects neither the tax profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that is no longer probable that sufficient
taxable profits will be available to allow all, or part, of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Intangible assets
Intangible assets acquired separately are measured on initial recognition at
cost. Following initial recognition, intangible assets are carried at cost less
any accumulated amortisation and any accumulated impairment losses. Internally
generated intangible assets are not capitalised until commercial viability of a
project is demonstrable and appropriate resource is in place to launch the
product. Except in those circumstances expenditure is charged against profit in
the year in which the expenditure is incurred. Intangible assets with a future
useful life are amortised over their useful economic lives. The intangible
assets residual values, useful lives and methods of valuation are reviewed and
adjusted, if appropriate, at each financial period end.
For intangible assets with finite useful lives, amortisation is calculated so as
to write off the cost of an asset less its estimated residual value over its
useful economic life as follows:
Know how, patents and licences - over 10 years.
Goodwill
Goodwill arising on consolidation represents the excess cost of acquisition over
the group's interest in the fair value of the identifiable assets and
liabilities of a subsidiary, associate or jointly controlled entity at the date
of acquisition.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed. Goodwill arising on acquisition before the date of
transition to IFRS has been retained at the previous UK GAAP amounts subject to
being tested for impairment at that date.
Impairment of tangible and intangible assets excluding goodwill
Intangible and tangible assets are reviewed for impairment both annually and
when there is an indication that an asset may be impaired when events of changes
in circumstances indicate that carrying value may not be recoverable. The
recoverable amount of the asset is calculated, this being the higher of the
assets fair value less costs to sell and its value in use. Where the carrying
amount exceeds the recoverable amount, the intangible assets are considered
impaired and written down to their recoverable amounts.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of assets over
their estimated useful lives on the following bases:
+---------------------------------+---------------------------------------+
| Equipment and fixtures | 25% per annum on reducing balance |
| | |
+---------------------------------+---------------------------------------+
| Leasehold property | Straight line over 10 years |
+---------------------------------+---------------------------------------+
The gain or loss arising on the disposal or retirement of an asset
is determined as the
difference between the sales proceeds and
the carrying amount of the asset and is recognised
in income.
Leases
Rentals under operating leases are charged against profit as
incurred.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the
rates of exchange ruling at the balance sheet date. Transactions in foreign
currencies are translated into sterling at the rate of exchange ruling at the
date of transaction. Exchange differences are taken into account in arriving at
the operating result.
Share based payments
The only share based payments of the group are equity settled Share options.
Options have been granted over the ordinary shares of Henderson Morley to
employees and advisors. All options granted had an exercise price of either
market value or above at the date of grant. Taking into account all the terms
and conditions upon which the options are granted the Directors believe that a
fair value for such shares does not exceed the exercise price. As a consequence
the amount recognised as an expense and as a share based payment reserve is
GBPNil.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises direct materials. Cost is calculated using the first in first out
(FIFO) basis. Net realisable value represents the estimated selling price less
all estimated costs to be incurred in marketing and selling.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Trade payables
Trade payables are not interest-bearing and are stated at their
nominal value.
Employee benefit costs
The company operates a defined contribution pension scheme. Contributions
payable to the company's pension scheme are charged to the income statement in
the period to which they relate.
Financial Liabilities
Financial liabilities and equity instruments are classified according to the
substance of the contractual agreements entered in to. An equity instrument is
any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments are recognised at the
amounts of proceeds received net of costs directly attributable to the
transaction. To the extent that those proceeds exceed the par value of the
shares issued they are credited to share premium account.
Key sources of estimation uncertainty and critical accounting judgements
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are discussed below.
Valuation of intangibles and impairment of goodwill and valuation of
intangibles
Determining whether a carrying value of goodwill and the other intangibles is
impaired requires an estimation of their values. Although there are uncertain
cash flows, the directors consider that there is sufficient value in
intellectual property and development to justify the carrying values. Therefore
there was no impairment during the period.
In preparing the financial statements of the individual companies, transactions
in currencies other than the entity's function currency (foreign currencies) are
recorded at the rates of exchange prevailing on the dates of the transactions.
At each balance sheet date, monetary assets and liabilities that are denominated
in foreign currencies are retranslated at the rates prevailing on the balance
sheet date.
Research and development expenditure was recognised in the income statement
during the year. Management made the judgement not to capitalise this
expenditure as it did not meet the criteria of IAS 38 in that it related to
costs incurred on the development of products which have not been approved from
a regulatory point of view at that stage.
Dividend policy
The directors currently intend to devote the Company's cash resources to its
operations and therefore do not anticipate paying dividends in the near future.
They will reconsider the Company's dividend policy as and when the Company is in
a position to pay dividends. The declaration and payment by the Company of any
dividends will depend on the results of the Group's operations, its financial
condition, cash requirements, future prospects, profits available for
distribution and other factors deemed to be relevant at the time.
3. Dividends
The Company will not be declaring an interim dividend.
4.loss per share
The calculation is based on the loss attributable to ordinary shareholders
divided by the weighted average number of ordinary shares in issue during the
period as follows:
+-----------------------------------------+-------------+-------------+-------------+
| | 6 months | 6 months | 12 |
| | Ended 31 | ended 31 | months |
| | October | October | ended 30 |
| | 2009 | 2008 | April |
| | | | 2009 |
| | | | |
+-----------------------------------------+-------------+-------------+-------------+
| | | | |
+-----------------------------------------+-------------+-------------+-------------+
| Numerators; earnings attributable to | (528,905) | (490,142) | (1,010,308) |
| equity | | | |
+-----------------------------------------+-------------+-------------+-------------+
| | | | |
+-----------------------------------------+-------------+-------------+-------------+
| Denominators; weighted average number | | | |
| of equity shares | | | |
+-----------------------------------------+-------------+-------------+-------------+
| Basic and Diluted | 920,405,452 | 575,261,963 | 611,261,963 |
+-----------------------------------------+-------------+-------------+-------------+
| | | | |
+-----------------------------------------+-------------+-------------+-------------+
5. CASH USED IN OPERATIONS
+-----------------------------------------+------------+-----------+--------------+
| | 6 months | 6 months | 12 |
| | ended 31 | ended 31 | months |
| | October | October | ended 30 |
| | 2009 | 2008 | April |
| | | | 2009 |
| | | | |
+-----------------------------------------+------------+-----------+--------------+
| Results from operating activities | (579,269) | (555,023) | (1,112,831) |
+-----------------------------------------+------------+-----------+--------------+
| Depreciation and amortisation | 20,610 | 32,117 | 66,602 |
+-----------------------------------------+------------+-----------+--------------+
| | | | |
+-----------------------------------------+------------+-----------+--------------+
| Profit disposed of fixed assets | - | (832) | (832) |
+-----------------------------------------+------------+-----------+--------------+
| | | - | |
+-----------------------------------------+------------+-----------+--------------+
| Decrease/(increase) in receivables | 36,251 | 45,380 | 25,940 |
+-----------------------------------------+------------+-----------+--------------+
| Increase/(decrease) in payables | (15,200) | (22,940) | (878) |
+-----------------------------------------+------------+-----------+--------------+
| Cash flows generated from operations | (537,608) | (501,298) | (1,021,999) |
+-----------------------------------------+------------+-----------+--------------+
| | | | |
+-----------------------------------------+------------+-----------+--------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QELFBBFFEBBX
Henderson Mrly. (LSE:HML)
過去 株価チャート
から 5 2024 まで 6 2024
Henderson Mrly. (LSE:HML)
過去 株価チャート
から 6 2023 まで 6 2024
