Interim Results
June 15 2004 - 8:45AM
UK Regulatory
RNS Number:7782Z
Bionex Investments PLC
15 June 2004
Bionex Investments plc
15 June 2004
Bionex Investments plc
Interim report for the six months to 31 March 2004
Chairman's Statement
In the six months to 31 March 2004 the company made a profit after taxation of
#307,000 and net assets per share were 2.32 pence.
The key feature in this result was one of our investments, Ark Therapeutics Plc,
successfully gaining a listing on the London Stock Exchange in March 2004 and
our subsequent disposal of a significant proportion of our holding. The disposal
realised in excess of #2,000,000 in cash and a pre tax profit of a little over
#1,000,000.
At 31 March we still held approximately one third of our original stake in Ark;
as at the date of this report we retain a holding of 720,000 shares.
In addition to the successes achieved with our investment in Ark, our quoted
short term trading portfolio produced a small profit.
Against this and in keeping with our prudent valuation policies, we have made a
further provision of #384,000 against the carrying value of our unquoted
portfolio. The market for fundraising by unquoted biotechnology businesses in
the UK and mainland Europe has been and remains very difficult, with may
companies being forced to accept lower valuations than were achieved in earlier
funding rounds; our portfolio has not been immune to this and indeed some of our
investee companies are currently seeking additional funding.
In our announcement dated 3 February 2004 the Board stated that it would not be
investing in new unquoted opportunities for the time being, but concentrating
resources on supporting those portfolio companies that are considered to be
capable of realising value in the medium term. In the light of current market
conditions in the unquoted biotechnology sector referred to above and the lack
of appropriate investment opportunities, this remains the view of the Board.
At 31 March cash in hand and on deposit totalled #2,165,000, with a further
#600,000 of settlement funds received in early April. However, following the
announcement dated 30 April 2004 when the Board stated its intention to broaden
the scope of its investment remit to incorporate quoted securities in sectors
other than life sciences, #500,000 has been placed with an external hedge fund
manager to be invested in large UK and European quoted securities on a short
term absolute return mandate.
The Board will continue to review investment opportunities and the company's
strategy on an ongoing basis to seek to maximise returns to shareholders in the
medium term.
Christopher Roberts
15 June 2004
Profit and Loss Account
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 March 31 March 30 September
2004 2003 2003
#'000 #'000 #'000
Note
Profit on sale of investments 1,087 - 74
Administrative expenses
Exceptional - (167) -
Other (115) (78) (194)
Other operating income 2 - -
(113) (245) (194)
Investment provision (384) - (293)
Profit / (loss) on ordinary activities 590 (245) (413)
before interest
Interest receivable and similar income 13 18 29
Profit / (loss) on ordinary activities 603 (227) (384)
before taxation
Taxation (296) - -
Profit / (loss) on ordinary activities after
taxation 307 (227) (384)
Basic earnings / (loss) per ordinary share - pence 2 0.19 (0.17) (0.26)
Balance Sheet
Unaudited Unaudited Audited
31 March 31 March 30 September
2004 2003 2003
#'000 #'000 #'000
Note
Fixed assets
Investments 3 965 2,607 2,350
Current assets
Current asset investments 239 80 26
Debtors 769 2 105
Cash at bank and in hand 2,165 1,007 1,037
3,173 1,089 1,168
Creditors: Amounts falling due (469) (28) (156)
within one year
Net current assets 2,704 1,061 1,012
Net assets 3,669 3,668 3,362
Capital and reserves
Called up share capital 1,579 1,579 1,579
Share premium 2,615 2,765 2,615
Profit and loss account (525) (676) (832)
Equity shareholders' funds 3,669 3,668 3,362
Cash Flow Statement
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 March 31 March 30 September
2004 2003 2003
#'000 #'000 #'000
Net cash outflow from operating activities (93) (207) (270)
Returns on investment and servicing of finance
Interest received 13 18 29
Capital expenditure and financial investments
Purchase of investments (595) (181) (446)
Sale of investments 1,803 - 477
1,208 (181) 31
Cash inflow / (outflow) before management of liquid 1,128 (370) (210)
resources and financing
Management of liquid resources and financing
(Increase) / decrease in short term deposits (1,250) 858 (42)
Financing
Issue of shares - 500 520
Expenses of share issue - - (150)
- 500 370
(Decrease) / increase in cash in the period (122) 988 118
Notes to the Accounts
1 Basis of preparation
The unaudited accounts for the six months ended 31 March 2004 do not constitute
statutory accounts.
The profit and loss account, balance sheet and cash flow statement have been
prepared on a basis consistent with the statutory accounts for the year ended 30
September 2003.
Results for the year ended 30 September 2003 have been extracted from the
statutory accounts which were reported on by the auditors, without qualification
or statement under Section 237(2) or (3) of the Companies Act 1985, and have
been delivered to the Registrar of Companies.
2 Earnings / (loss) per share
The calculation of the basic earnings / (loss) per ordinary share is based on
profit / (loss) on ordinary activities after tax and on the weighted average
number of ordinary shares in issue during the period. The calculation of
diluted earnings per ordinary share is not disclosed as the warrants and further
subscription rights are non dilutive when calculated in accordance with FRS 14.
Reconciliations of the earnings / (loss) and weighted average number of shares
used in the calculations are set out in the table below.
6 months ended 31 March 2004 6 months ended 31 March 2003
Weighted Weighted
Average Earnings Average Loss
Earnings Number of per share Loss Number of per share
# shares (pence) # Shares (pence)
Basic earnings / (loss) per
ordinary share
306,844 157,925,634 0.19 (227,278) 132,659,644 (0.17)
12 months ended 30 September 2003
Weighted
Average Loss per
Loss Number of share
shares (pence)
#
Basic loss per ordinary share
(383,943) 145,435,153 (0.26)
Notes to the accounts continued
3 Investments
Unlisted Listed Total
#000 #000 #000
Cost
At 1 October 2003 3,001 - 3,001
Additions 67 - 67
Reclassifications (1,550) 1,550 -
Disposals - (1,069) (1,069)
At 31 March 2004 1,518 481 1,999
======= ======= =======
Provisions
At 1 October 2003 651 - 651
Provisions in period 383 - 383
At 31 March 2004
1,034 - 1,034
_______ _______ _______
Net book value
At 31 March 2004 484 481 965
======= ======= =======
At 30 September 2003 2,350 - 2,350
======= ======= =======
Aggregate market value
At 31 March 2004 488 925 1,413
======= ======= =======
Unlisted investments includes holdings in AIM quoted companies.
4 Other information
The interim statement was approved by the Directors on 15 June 2004.
A copy of the interim statement will not be posted to shareholders but will be
made available to the public at the company's registered office, 223a Kensington
High Street, London W8 6SG.
ENQUIRIES:
Bionex Investments plc
Christopher Roberts Tel: 020 7937 4445
W.H. Ireland Limited
Peter Jackson Tel: 020 7397 3000
This information is provided by RNS
The company news service from the London Stock Exchange
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