TIDMPEBI
RNS Number : 4131A
Port Erin Biopharma Investments Ltd
30 March 2012
Port Erin Biopharma Investments Limited
("Port Erin or the "Company")
Interim Results for the period from 3 May 2011 (date of
incorporation) to
31 December 2011
The Board of Port Erin, the AIM quoted company focused on
investing in the biotechnology and biopharmaceutical sectors, is
pleased to announce its interim results for the period from 3 May
2011 (date of incorporation) to 31 December 2011.
Financial Highlights
As at 31 December 2011
---------------------------- ------------------------
Shareholders' funds GBP2,836,156
---------------------------- ------------------------
Ordinary Shares in Issue 33,000,000
---------------------------- ------------------------
Net Asset Value per share 8.594 pence
---------------------------- ------------------------
Share Price* 8.500 pence
---------------------------- ------------------------
Share Price Discount (1.1%)
---------------------------- ------------------------
* Mid market closing share price as at 29 March 2012
For further information, please contact
Libertas Capital Corporate Finance Limited
Sandy Jamieson 0207 569 9650
Rivington Street Corporate Finance Limited
Jon Levinson 0207 562 3389
Chairman's Statement
Introduction
I have great pleasure in presenting the first set of Interim
Results for the Company.
The loss for the six months is GBP164,844. This figure needs to
be considered in conjunction with the costs borne by the Company in
completing our successful listing on AIM in mid-September 2011.
Despite every effort to keep costs to the minimum, the total
listing expenses were approximately GBP265,000. Thus in the first
six months of trading, we have been able to generate a consolidated
net gain of GBP157,241 - both realised and unrealised - on initial
available investment cash of approximately GBP2.74 million. In
considering the volatility of the current markets, this is a
respectable outturn and represents a Net Asset Value of 8.594 pence
per share.
The Biopharma Sector
The biopharma sector first emerged in the late 1970s, and is now
overtaking the traditional pharma sector in terms of drug discovery
and profitability. In a nutshell, biopharma products are derived
from living organisms, whereas traditional pharma products are
constructed using synthetic chemistry. The gap between traditional
big pharma companies and biopharma companies has narrowed, as large
pharma companies have acquired smaller entrepreneurial companies or
forged alliances and provided finance to the latter. By 2015, we
expect at least half of US drug sales to come from biopharma
products and of special note will be those dealing with
inflammatory diseases and in oncology.
Ageing of populations in many parts of the world, new therapies
to both cure and reduce the effects of previously untreatable
diseases, and excitement around areas of significant areas of unmet
needs - for example Alzheimer's - is providing the engine for
growth for many investable companies.
Notwithstanding the huge opportunities involved in the industry,
total market capitalisation of the sector remains relatively small,
and valuations appear to be much more attractive to us than in
other technology industries.
Without a doubt, new drugs, new emerging markets and
demographics will provide huge impetus to this nascent industry in
future years and we expect the Company to prosper as a result.
Investment Objective
Our investment objective is to achieve long-term capital growth
by investing primarily in biopharma and other life sciences
companies that are either quoted or unquoted and possess the
potential for high growth. We will invest in companies whose shares
we consider to have good prospects, with experienced management and
strong potential upside through the development and
commercialisation of a product or enabling technology.
Investment Policy and Strategy
A portion, approximately 40%, of our assets will be invested in
smaller and mid-capitalisation quoted companies, with a majority in
larger capitalisation quoted companies, mostly in the US and in the
UK. We are likely to invest up to 10% of our assets in unquoted
companies, while allowing an exposure of up to 20% in unquoted
companies after allowing for valuation write-ups and further
follow-on investments.
Investments made in quoted public companies will be made in
anticipation of signi cant re-rating in valuations when clinical
trials are successful. For unquoted investments, our criterion is
to seek to generate gains through the sale of these unquoted
companies to strategic buyers including major pharmaceutical
companies or, in some cases, through a otation.
The majority of our investments will be made in the US and in
the UK, which are the most mature and established markets for
pharmaceutical drugs, and as a consequence have the most
established commercial biotechnology industry with the broadest and
deepest community of biotechnology companies. However, we will not
limit ourselves to one particular region so the Company will
usually have some investments in Western Europe and occasionally
elsewhere such as Australia or Asia.
In the first period, we have had a major single investment
success with Medivation, a US listed company, whose compound for
late stage prostate cancer - MDV 3100 - appears likely to be
effective. Other portfolio companies of note are Arrowhead
Research, a leader in RNA technology, also with a promising obesity
drug, and Plethora Solutions, a leader in sexual health.
Prospects
I remain very positive about the investment prospects for the
biotechnological sector. I have mentioned the continuing population
growth, and there is clearly no decrease in the demand for
innovative new drugs and diagnostics. This innovation is fuelling
an ever increasing requirement to treat the diseases and conditions
associated with old age in the most cost effective manner
possible.
The smaller companies lead this innovation and provide an
effective mechanism for the traditional majors to acquire this
expertise as the major's own internal resources are unable to keep
up with new developments.
In the long term, the whole sector is trading at the lowest
price earnings multiple as measured against the wider equity market
as a whole in both relative and absolute terms. This, in my view,
represents one of the most significant long-term opportunities
currently available to investors.
Jim Mellon
Chairman
Port Erin Biopharma Investments Limited
30 March 2012
Principal activity
The Company was formed for the purpose of investing in the
biotechnology and biopharmaceutical sector. The Company was
incorporated on 3 May 2011 under the Isle of Man Companies Act 2006
and has no employees other than Directors. On 15 September 2011 the
Company's shares were admitted to AIM.
Dividend
The Directors do not propose the payment of a dividend.
Directors
The Directors who served during the period and to date were:
Appointed
James Mellon 6 May 2011
Thomas Winnifrith 6 May 2011
Nicholas James Woolard 6 May 2011
Directors' Interests
As at 31 December 2011, the interests (all of which are
beneficial unless otherwise stated) of the Directors and their
families (as such term is defined in the AIM Rules for Companies)
in the share capital of the Company are as follows:
Number of Ordinary Shares Percentage
of Issued
Capital
Direct Interests Other Interests
James Mellon(1) 310,000 3,100,000 10.33%
Thomas Winnifrith(2) 100,000 1,000,000 3.33%
Nicholas James Woolard 100,000 - 0.30%
Notes:
(1) Shellbay Investments Limited, wholly owned by a trust of
which James Mellon is a life tenant, holds 3,100,000 Ordinary
Shares.
(2) Thomas Winnifrith has a 28.7 per cent. interest in the
capital of Rivington Street Holdings plc ("RSH") and is a director
of that Company. RSH wholly owns Rivington Street Ventures Limited
("RSV") which holds 1,000,000 Ordinary Shares. In addition, RSH
wholly owns both Rivington Street Stockbrokers Limited ("RSS"),
which holds 4,258,225 Ordinary Shares in its nominee account on
behalf of its clients, and T1ps Investment Management (IOM) Limited
("TIM"). TIM is the investment manager for both Elite t1ps Smaller
Companies Income and Growth Fund ("SCIGF") and SF t1ps Smaller
Companies Growth Fund ("SCGF"). SCIGF holds 3,250,000 Ordinary
Shares and SCGF holds 3,260,000 Ordinary Shares. Thomas Winnifrith
is also a director of TIM and RSS.
As at 31 December 2011 the Directors and their families (as such
term is defined in the AIM Rules for Companies) held the following
Warrants:
Number of Warrants
James Mellon 2,100,000
Thomas Winnifrith 100,000
Nicholas James Woolard 100,000
The Company issued Warrants to subscribe for one new ordinary
share for every placing share. The Warrants may be exercised for
12.5 pence at any time within two years of the 15 September 2011,
being the date of admission to trading on AIM, at the option of the
holder or at the option of the Company in the event that the
closing price of the ordinary shares is more than GBP0.20p for five
(5) consecutive trading days. The Warrants were issued on the
placing date of the 15 September 2011 and will not be admitted to
trading on AIM.
Statement of comprehensive income (Unaudited)
for the period from 3 May 2011 (date of incorporation) to 31
December 2011
Notes 2011
GBP
Income 1(d) 157,241
Operating expenses
Directors fees (5,000)
Other costs 2 (327,363)
Exchange gains 1(g) 8,749
------------
Net loss before interest (166,373)
Interest received 1(d) 1,529
------------
Loss before taxation (164,844)
Taxation 1(h) -
------------
Net loss for the period (164,844)
Other comprehensive -
income
------------
Total comprehensive income for the
period (164,844)
Earnings per share 5 (0.0101)
Diluted earnings per
share 5 (0.0101)
In the period, there were no recognised gains or losses other
than those dealt with in the statement of comprehensive income.
The Directors consider that the Company's activities are
continuing.
Statement of financial position (Unaudited)
as at 31 December 2011
Notes 2011
GBP
Assets
Non-current assets
Investments 1(c) 1,809,046
Current assets
Trade and other receivables 1(e) 19,144
Cash and cash equivalents 1(e) 1,016,218
----------------
Total assets 2,844,408
Equity and liabilities
Capital and reserves
Share capital 3 33
Share premium 3 3,000,967
Accumulated loss (164,844)
----------------
2,836,156
Current liabilities
Trade and other payables 8,252
----------------
Total equity and liabilities 2,844,408
Statement of changes in equity (Unaudited)
for the period from 3 May 2011 (date of incorporation) to 31
December 2011
Share Share Accumulated
Premium Capital Loss Total
GBP GBP GBP GBP
Balance at 3 May 2011 - - - -
Net loss for the period - - (164,844) (164,844)
Shares issued 3,000,967 33 - 3,001,000
---------------- ---------------- ---------------- ----------------
Balance at 31 December
2011 3,000,967 33 (164,844) 2,836,156
Cash flow statement (Unaudited)
for the period from 3 May 2011 (date of incorporation) to 31
December 2011
Notes 2011
GBP
Cash flows from operating activities
Operating loss (164,844)
Adjustment for:
Interest received (1,529)
--------------
Operating loss before changes in working
capital (166,373)
(Increase) in receivables (19,144)
Increase in payables 8,252
--------------
Net cash outflow from operating activities (177,265)
Cash flows from investing activities
Investments acquired (1,809,046)
Interest income 1,529
--------------
(1,807,517)
Cash flows from financing activities
Share issues 3 3,001,000
Increase in cash and cash equivalents 1,016,218
Cash and cash equivalents at beginning -
of period
--------------
Cash and cash equivalents at the end
of period 1,016,218
Notes (Unaudited)
(forming part of the financial statements for the period the
period from 3 May 2011 (date of incorporation) to 31 December
2011)
1 Accounting policies
Port Erin Biopharma Investments Limited is a Company domiciled
in the Isle of Man.
The interim financial statements incorporate the principal
accounting policies set out below.
a) Statement of compliance
The interim financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) and the
interpretations adopted by the International Accounting Standards
Board (IASB).
b) Basis of preparation
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision only
affects that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
c) Investments
Investments are acquired to realise gains from fluctuations in
prices. These assets are valued at fair value based on quoted bid
prices.
All investments held at the period end were quoted on publicly
traded exchanges.
d) Income
Any realised and unrealised gains and losses on investments are
presented within 'Income'.
Interest income has been earned during the period, which is
accrued on a time apportion basis, by reference to the principal
outstanding and the effective rate applicable.
Dividend income is recognised when a security held goes
ex-dividend.
e) Financial instruments
Measurement
Financial instruments are initially measured at cost, which
includes transaction costs. Subsequent to initial recognition these
instruments are measured as set out below.
Trade and other receivables
Trade and other receivables originated by the Company are stated
at amortised cost less impairment losses.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value and due on
demand.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised
cost, comprising original debt less principal payments and
amortisations.
f) Provisions
Provisions are recognised when the Company has a present legal
or constructive obligation as a result of past events, for which it
is probable that an outflow of economic benefits will occur, and
where a reliable estimate can be made of the amount of the
obligation.
Where the effect of discounting is material, provisions are
discounted. The discount rate used is a pre-tax rate that reflects
current market assessments of the time value of money and, where
appropriate, the risks specific to the liability.
g) Foreign currencies
Transactions in foreign currencies are recorded at the rate
ruling at the date of the transaction. Monetary assets and
liabilitiesdenominated in foreign currencies are retranslated at
the rate of exchange ruling at the balance sheet date. All
differences are taken to the income statement.
Non-monetary assets and liabilities that are measured in terms
of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.
h) Taxation
The Company is subject to tax at a rate of 0% in the Isle of
Man, and accordingly, no tax has been provided for in the interim
financial statements.
2 Other costs
2011
GBP
Bank charges 550
Insurance 2,815
Printing and stationery 680
Professional fees 323,278
Sundry expenses 40
--------------
327,363
The Company has no employees other than the Directors.
3 Share capital
2011
GBP
Authorised
2,000,000,000 Ordinary shares
of GBP0.000001 2,000
Issued
33,000,000 Ordinary shares
of GBP0.000001 each 33
----------------
33
Share premium
3 shares issued at incorporation 997
30,000,000 shares issued
on 15 September 2011 2,999,970
----------------
Total 3,000,967
On incorporation the share capital of the Company was GBP2,000
divided into 2,000 ordinary shares of GBP1 each.
On 3 May 2011, 3 ordinary shares were issued at par as
follows:-
Galloway Limited - 1 ordinary share of GBP1 each
Rivington Street Ventures Limited - 1 ordinary share of GBP1 each
SF t1ps Smaller Companies Growth Fund - 1 ordinary share of GBP1 each
On 8 May 2011, Galloway Limited transferred 1 ordinary share of
GBP1 to Shellbay Investments Limited.
On 9 May 2011, pursuant to a Director's resolution, the share
capital was divided into 2,000,000,000 ordinary shares of
GBP0.000001p each.
On 15 September 2011 the Company issued 30,000,000 ordinary
shares at a price of GBP0.10 pence each, each with a Warrant
attached. The Warrants are to subscribe for one new ordinary share
for every placing share. The Warrants may be exercised for 12.5
pence at any time within two years of the 15 September 2011, being
the date of admission to trading on AIM, at the option of the
holder or at the option of the Company in the event that the
closing price of the ordinary shares is more than GBP0.20p for five
(5) consecutive trading days.
In the opinion of the directors any value that the Warrants may
have is fully reflected in the share price and thus has no
separately identifiable worth.
4 Financial instruments
The Company's financial instruments are exposed to a number of
risks as detailed below:
Credit risk
The carrying amount of financial assets represents the maximum
credit exposure. The maximum exposure to credit risk at the
reporting date was:
Exposure to credit risk
Carrying amount
Notes 2011
GBP
Investments 1(c) 1,809,046
Cash and cash equivalents 1(e) 1,016,218
The Company invests available cash and cash equivalents with UK
and Isle of Man licensed banks.
The risk is managed by the Company by means of cash flow
planning to ensure that future cash requirements are anticipated
and, where financial instruments have to be sold to meet these
requirements, the process is carried out in a controlled manner
intended to minimise the liquidity risk involved.
Market price risk
Market price risk is the risk that the market price will
fluctuate due to macro-economic issues such as changes in market
factors specific to that security, market interest rates and
foreign exchange rates.
Cash flow and funding risk
The Company is exposed to liquidity risk to the extent that it
holds investments that it may not be able to sell quickly at close
to fair value.
Interest rate risk
A significant share of the Company's assets is comprised of cash
held at banks. As a result, the Company is subject to risk due to
fluctuations in the prevailing level of market interest rates.
However, income earned from bank interest is not considered
material to the Company's performance or financial position.
Fair values of financial instruments
At 31 December 2011 the carrying amounts of cash resources,
trade and other receivables, and trade and other payables
approximate their fair values due to their short-term
maturities.
Foreign currency risk
The following significant exchange rate applied during the
year:
Average rate for active Period end rate (31
period December 2011)
US Dollar 1.6012 1.5428
Sensitivity analysis
A 5% per cent. strengthening of sterling against the US Dollar
at 31 December 2011 would have decreased equity and increased the
loss by the amounts shown below. The analysis assumes that all
other variables, in particular interest rates, remain constant.
Equity Loss
US Dollar (GBP86,103) (GBP86,103)
A 5% percent weakening of sterling against the above currencies
at 31 December 2011 would have had the equal but opposite effect on
the above currencies to the basis that all other variables remain
constant.
Fair Value measurement at 31 December 2011
Investments in securities at fair value
Total Quoted prices Significant Significant
in active markets other observable unobservable
for identical inputs (level inputs (level
assets (level 2) 3)
1)
Investments 1,809,046 1,809,046 - -
5 Basic and diluted earnings per share
The calculation of basic earnings per share of the Company is
based on the net loss of GBP164,844 and the weighted average number
of shares of 16,259,259 in issue during the period.
Diluted earnings per share are calculated adjusting the weighted
average number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares. As at 31 December 2011
there is no dilutive effect, because the Company incurred net
losses. Therefore, basic and diluted earnings per share are
equal.
6 Events after the reporting date
There have been no material events since the reporting date that
require disclosure in the interim financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMGZFLLLGZZM
Agronomics (LSE:ANIC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Agronomics (LSE:ANIC)
Historical Stock Chart
From Jul 2023 to Jul 2024