Interim Management Statement (3316S)
November 18 2011 - 2:00AM
UK Regulatory
TIDMATD
RNS Number : 3316S
Asterand PLC
18 November 2011
For Immediate Release 18 November 2011
---------------------- -----------------
Asterand plc
("Asterand" or the "Group")
INTERIM MANAGEMENT STATEMENT
Asterand plc (LSE: ATD), a leading provider of human tissue and
human tissue-based services to pharmaceutical and biotechnology
companies engaged in drug discovery research, today issues its
Interim Management Statement.
In the Company's Interim Results statement on 31 August 2011,
Asterand announced that volatile trading conditions had led to a
reduced outlook for the year and that further funding would be
required as the Company was in breach of its banking covenants.
After a downturn in the Tissue business during the third
quarter, trading conditions have improved and the Company now
expects Tissue revenues to be in line with 2010. BioSeek has
consolidated its trading in the second half to date after achieving
strong growth in the first half. Overall, the Company continues to
expect that Group revenues for the full year ended 31 December 2011
should exceed 2010.
Whilst the Company is encouraged with the upturn in the
operational performance, the balance sheet remains an issue that
needs to be resolved. The Company previously announced that events
of default had occurred in respect of both the Silicon Valley Bank
debt and the loan notes with former BioSeek shareholders. These
debts amount to approximately US$9m in aggregate. The need to
settle these notes led the Board to look first at a re-financing of
the Group and then to commence, on 24 October 2011, a formal sale
process. The Board's initial estimates of the cash available to the
Company have been reviewed and in light of both the upturn in
trading and improvements in cash collection and working capital
control, the Board now believes that it has sufficient working
capital to continue into the early part of 2012. As a consequence,
the Company has extended the timeframe for the formal sales process
and continues to evaluate the options of either a sale of the
business or a re-financing.
As well as experiencing challenging trading conditions since 30
June 2011, the Company has also experienced management changes with
both the CEO, Martyn Coombs, and the CFO, John Stchur, leaving the
Company. Alan Fishman was appointed as Interim CFO with Jack Davis,
the Company's Chairman, taking on the role of Interim CEO.
Discussions regarding the appointment of a new CEO have been
suspended for the period of the formal sale process.
Jack Davis, Asterand Chairman and Interim CEO, commented:
"The second half of 2011 has been a turbulent one for the
Company. Asterand started the year with high expectations only to
experience volatile trading in the first half which adversely
impacted certain key financing arrangements and a weakening of our
balance sheet. Whilst the expected increase in revenues for the
final quarter has improved the general outlook, our balance sheet
issues continue to dominate the actions of the Company."
Contacts:
Asterand plc
Jack Davis, Chairman and Interim CEO Tel: + 44 (0) 1763 211 600 /
+ 1 (313) 263-0960
Alan Fishman, Interim CFO As above
Daniel Stewart & Company plc
Antony Legge Tel: +44 (0) 20 7776 6550
Buchanan Communications
Lisa Baderoon / Mark Court / Isabel Podda Tel: +44 (0) 20 7466 5000
About Asterand
Asterand plc is a leading supplier of high quality human tissue
and tissue-based services. Our comprehensive approach to human
tissue and research services offers pharmaceutical, biotech and
diagnostic companies the unique opportunity to have one company
meet all of their human biomaterial needs along the continuum of
drug discovery and development. Our mission is to accelerate target
discovery and compound validation and enable pharmaceutical and
biotechnology companies to take safer and more effective drugs into
the market. For more information about Asterand, go to
www.asterand.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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