TIDMIDA
RNS Number : 8958Z
IdaTech PLC
30 September 2009
+------------------------------------+-------------------------------------------+
| For immediate release | 30 September 2009 |
+------------------------------------+-------------------------------------------+
IdaTech plc
("IdaTech" or "the Company")
Interim Results for the six months ended 30 June 2009
IdaTech plc (AIM: IDA), a global leader in the development and manufacture of
clean and reliable extended run backup power fuel cell products, operationally
headquartered in Bend, Oregon, USA, today announces its Interim Results for the
six months ended 30 June 2009.
Operational Key points:
* Successfully completed product acceptance of the first new fuel cell product for
ACME Telepower Group ("ACME"), the ElectraGen(TM) H2, and initial
shipments commenced
* Total system sales of 56 (2008: 21)
* Continued development of a natural gas fuelled fuel cell system - significant
milestones achieved
* Considerable progress made on reducing component and product costs
* Commenced development of IdaTech's next generation methanol-water fuelled fuel
cell system
* Participation, through the Company's European OEM partner, in Germany's National
Innovation Program ("NIP")
* Office established in the strategically important Asia-Pacific region
* Backlog at the end of the period of 358 fuel cell systems for delivery in the
second half of 2009
Financial Key points:
· Revenue from product sales increased by 55% to US$1.0 million (2008 US$0.6
million)
· Operating loss of US$13.0 million (2008: US$10.2 million), in line with
management expectations
Post Period Key points:
* Two additional distribution channel partners were added in Asia and Latin
America
* An order for 14 systems from the Latin American region for delivery by end of
2009
* Successfully completed first high rate production run at IdaTech's Mexican
facility, validating its capability
* Likely delay in the development of the natural gas fuel cell system to be
supplied under its Supply Agreement with ACME
Commenting on the Interim Results, Hal Koyama, Chief Executive Officer of
IdaTech, said:
"IdaTech continues to focus on developing and deploying systems for critical
power applications as the entry point for mass commercialisation and profitable
growth. Working with our new global supply chain and with our partner, Ballard
Power Systems, the Company has made significant strides improving product
performance, reducing product costs and preparing the market for our products.
These advances will enable IdaTech to compete directly with diesel generators in
large scale deployments with cleaner, more efficient and more durable fuel cell
products.
Our work with ACME Tele Power and others has validated our belief that the
telecommunications markets have significant potential for growth and volume. We
have already seen interest growing in all of our key geographies for larger
scale deployments of fuel cell systems."
For further information please contact:
+----------------------------------------+---------------------------------------+
| IdaTech plc | |
+----------------------------------------+---------------------------------------+
| Harol Koyama, Chief Executive Officer | +1 541 322 1000 |
+----------------------------------------+---------------------------------------+
| James Cooke, Chief Financial Officer | |
+----------------------------------------+---------------------------------------+
| | |
+----------------------------------------+---------------------------------------+
| Numis Securities Limited | +44 (0) 20 7260 1000 |
+----------------------------------------+---------------------------------------+
| Michael Meade / Hugh Jonathon | |
+----------------------------------------+---------------------------------------+
| | |
+----------------------------------------+---------------------------------------+
| Buchanan Communications | +44 (0) 20 7466 5000 |
+----------------------------------------+---------------------------------------+
| Charles Ryland / Catherine Breen | |
+----------------------------------------+---------------------------------------+
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT
The financial information included in this statement covers the six months ended
30 June 2009.
Strategy
IdaTech's core focus is critical power backup markets and as such the Company's
activities during the period have been to prepare the foundation for commercial
mass adoption of IdaTech's products within this target market.
As previously announced on 23 September 2009, IdaTech anticipates a delay in the
development of the natural gas fuel cell system to be supplied under its Supply
Agreement with ACME Telepower Group ("ACME"), resulting in uncertainty
surrounding the continuation of the Agreement. This delay means that a milestone
in the product acceptance process is likely to be missed in October of this
year. Under the terms of the Supply Agreement, missing this particular milestone
may result in the termination of the Supply Agreement without penalties to any
party.
At a high level, IdaTech has two competitive advantages, its system integration
and its proprietary multi-fuel reforming capabilities. IdaTech's proprietary
ability to reform a variety of commonly available fuels to produce hydrogen on
site and as needed, enables our products to overcome the so called 'hydrogen
barrier' (the difficulties in supplying and managing pure hydrogen) which has
previously deterred the mass adoption of fuel cells.
The focus of the business has been in the countries and regions in which the
value proposition of the fuel cell system is highest to the customer. These are
areas in which the electrical grid is unreliable or where there are incentives
for customers to invest in fuel cells, such as tax credits in the USA. The
Company believes that the commercial development work undertaken on the natural
gas system validates the value proposition for this product in India.
IdaTech has made a number of technological advances during the development of
the ElectraGenTMH2 and natural gas fuelled systems which will significantly
reduce the cost of these and its next generation products. This will allow the
Company to compete directly with traditional diesel generators that currently
command a mass market around the world.
Commercial Progress
IdaTech's commercial focus continues to be on those telecommunication companies
that are the early adopters of fuel cell systems and which can support mass
adoption and volume sales in the near term. A key activity in the period under
review has been the establishment of a regional office and the appointment of
strategic regional distributors in the key high growth Asia-Pacific region.
IdaTech, through its partners, has already sold five systems for customer
acceptance testing in the period to customers which it believes could lead to
further volume sales in the near term.
Over the last few months there has been an increase in interest for IdaTech's
products despite the severe worldwide economic downturn. During the six months
to 30 June 2009, a larger proportion of the Company's sales have been of direct
hydrogen fuelled systems than in the previous period. This has mainly been
driven by Government awards and programs, such as the German National Innovation
Program, which have been typically applicable to such systems only. Customer
feedback suggests that this increased interest will continue because the
telecommunications companies using fuel cells continue to see value in the
product.
In most cases, these same customers, when exposed to the value proposition and
compelling operational case for IdaTech's reformer based fuel cell systems,
immediately see the value in overcoming traditional concerns regarding hydrogen.
With the ElectraGenTM product group, IdaTech has the capability to support such
customer demand led changes by offering the direct hydrogen fuelled ElectraGenTM
systems with an upgrade path to full reformed systems such as the ElectraGenTM
XTR and XTi in order for the customer to gain the operational cost savings
reformed systems offer. No other fuel cell Company can match this product range.
During the six months ended 30 June 2009, IdaTech sold 56 fuel cell systems
(2008: 21). Of these, 10 were delivered to India, for deployment within the fast
growing Indian telecommunications market. 25 systems were sold to IdaTech's
European OEM distributor, principally for deployment in Germany for high
reliability radio networks, as well as in uninterrupted power supply
applications, supporting the development of mass deployment of IdaTech's systems
in the German market. A further 11 were sold to customers in Latin America,
following the deployment of approximately 40 systems there in 2008. These
systems are providing backup power in remote and difficult locations, some of
which had never had backup capability before.
Operational Progress
During the period under review, the facility in Tijuana was upgraded in
readiness for the production of the ElectraGenTM H2 systems. Following the
period end, this manufacturing line, recently designed and installed, has been
run at full production rate and demonstrated its capability for high volume.
Additionally, IdaTech has constructed an extensive low cost supply chain
spanning India, China, Germany and North America. It is believed that this
capability positions the Company very well for high volume, low cost production
and adds another key competitive advantage.
Technical Progress
During the period, development activity was focused on the completion of the
ElectraGenTM H2 product, the continued development of the natural gas fuelled
system and, towards the end of the period, the commencement of the development
of the next generation methanol-water fuelled products.
The development work on both the ElectraGenTM H2 and the natural gas fuelled
systems has brought significant benefits to IdaTech in terms of its technical
know-how, system design and system integration skills. These advancements are
being incorporated into the next generation methanol-water fuelled system, which
should result in a lower cost, more robust and reliable product range. The
development and deployment of IdaTech's next generation methanol-water fuel cell
products is a crucial step in the evolution of the Company in preparation for
profitable growth.
Financial Review
Revenue
Total revenue was US$1,526,600 for the six months ended 30 June 2009 (2008:
US$2,646,000). The decrease is attributable to a reduction in revenue derived
from development and government projects. In the period, IdaTech sold 56 systems
(2008: 21) generating product revenue of US$961,400 (2008: US$619,800). As
discussed under Commercial Progress above, the mix of systems sold in the period
was more heavily weighted towards lower priced hydrogen systems than in the
prior period which has resulted in lower revenue per unit.
Revenue from development contracts accounted for US$533,600 compared with
US$1,965,400 for the same period in 2008 due to the deferral of certain third
party projects in order that the development resources could be focused on
delivering the natural gas and the ElectraGenTM H2 systems.
Gross Loss
The business recorded a gross loss of US$2,389,300 in the period (2008: gross
loss of US$947,800) which was in line with expectations. This was a result of
two factors; lower higher-margin third party project revenue and a product sales
mix more heavily weighted towards product sales with lower margins than in the
prior period.
Operating expenses
Research and development costs (after deducting costs relating to development
projects which are classified as cost of sales and capitalisation of product
development costs) increased by US$1,220,000 to US$5,047,900 for the period
ended 30 June 2009, from US$3,827,900 in the prior period. The increase was
primarily due to the ramp up of product development for the natural gas product.
Sales, general and administrative expenses increased by US$104,900 to
US$5,529,100 for the period ended 30 June 2009 from US$5,424,200 for the same
period in 2008. The increase was due to an increase in the number of direct
sales employees offset by a fall in spending in marketing as a result of more
targeted advertising and trade show attendance. In addition,
administration costs fell.
Interest receivable and payable
The decrease in the interest received during the period of US$110,600 to
US$2,300 as compared with the prior period of US$112,900 was a result of lower
cash balances held by IdaTech and lower market interest rates. Interest payable
increased significantly during the period US$547,400 (2008: US$18,100) due to
credit line drawdown.
Loss for the period before tax
As a result of the factors above the Group's loss before tax for the six months
to 30 June 2009 increased by US$3,406,300 to US$13,511,400 compared with
US$10,105,100 for the six months ended 30 June 2008.
Cash flow
The net cash used in the six months to 30 June 2009 (excluding the receipt of
funds from the credit line drawdown) was US$11,759,400 (2008: US$11,737,600).
The cash outflow from operations was US$10,674,300 (2008: US$11,439,300) as a
result of the increased operating expenses in the period, offset by lower
inventory and accounts receivable working capital requirements than in the prior
period.
Future funding
Investec, IdaTech's majority shareholder has indicated its current intention to
provide financial support for the Company. IdaTech may seek to raise additional
funds in due course.
Trading Outlook
For the full year, IdaTech expects to sell the 310 ElectraGenTMH2 systems to
ACME in addition to approximately 150 systems from other sales. These sales are
directed at customers which the Company believes will support higher volume
sales in 2010 and beyond.
The Company will give further guidance regarding of the ACME contract once a
definitive point in the contract has been reached. As previously announced, the
Directors believe, that if the Supply Agreement is terminated, it would mean
significantly lower sales for 2010. However, such termination should have no
material impact on the timing of cash breakeven for the Company.
Sir John Jennings Hal Koyama
Chairman Chief Executive Officer
Consolidated income statement for the period 1 January 2009 to 30 June 2009
+---------------------------------------------+-----+------+--------------+------------+
| | | Unaudited |
+---------------------------------------------------+------+---------------------------+
| | Six months ended 30 June |
+---------------------------------------------------+----------------------------------+
| | | 2009 | 2008 |
+---------------------------------------------+-----+---------------------+------------+
| | | US$'000 | US$'000 |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Revenue | | 1,526.6 | 2,646.0 |
+---------------------------------------------+-----+---------------------+------------+
| Cost of sales | | (3,915.9) | (3,593.8) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Gross (loss) / profit | | (2,389.3) | (947.8) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Research and development costs | | (5,047.9) | (3,827.9) |
+---------------------------------------------+-----+---------------------+------------+
| Sales, general and administrative expenses | | (5,529.1) | |
| | | | (5,424.2) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Adjusted EBITDA * | | (10,124.6) | (7,683.1) |
+---------------------------------------------+-----+---------------------+------------+
| Depreciation | | (137.9) | (112.5) |
+---------------------------------------------+-----+---------------------+------------+
| Amortisation of intangible assets | | (1,203.8) | (984.1) |
+---------------------------------------------+-----+---------------------+------------+
| Share based payments | | (1,500.0) | (1,420.2) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Operating loss | | (12,966.3) | (10,199.9) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Finance income | | 2.3 | |
| | | | 112.9 |
+---------------------------------------------+-----+---------------------+------------+
| Finance costs | | (547.4) | |
| | | | (18.1) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Loss for the period before tax | | (13,511.4) | (10,105.1) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Taxation | | 384.4 | 365.6 |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Loss for the period | | (13,127.0) | (9,739.5) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+---------------------+------------+
| Basic and diluted loss per share (US$) | 4 | (0.26) | (0.20) |
+---------------------------------------------+-----+---------------------+------------+
| | | | |
+---------------------------------------------+-----+------+--------------+------------+
*earnings before interest, tax, depreciation, amortisation and share based
payments
All amounts relate to continuing activities.
Consolidated balance sheet as at 30 June 2009
+-----------------------------------+----------+------------+------------+------------+
| | | | | |
+-----------------------------------+----------+------------+------------+------------+
| | | | | |
+-----------------------------------+----------+------------+------------+------------+
| | | | | |
+-----------------------------------+----------+------------+------------+------------+
| | | Unaudited | 31 | Unaudited |
| | | 30 June | December | 30 June |
+-----------------------------------+----------+------------+------------+------------+
| | | 2009 | 2008 | 2008 |
+-----------------------------------+----------+------------+------------+------------+
| | | US$'000 | US$'000 | US$'000 |
+-----------------------------------+----------+------------+------------+------------+
| ASSETS | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Non-current assets | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Property, plant and equipment | | 1,165.3 | 1,005.6 | 977.8 |
+-----------------------------------+----------+------------+------------+------------+
| Goodwill | | 18,001.2 | 18,001.2 | 18,001.2 |
+-----------------------------------+----------+------------+------------+------------+
| Intangible assets | | 23,112.0 | 23,792.9 | 23,466.3 |
+-----------------------------------+----------+------------+------------+------------+
| Long term deposits | | 100.0 | 100.0 | 100.0 |
+-----------------------------------+----------+------------+------------+------------+
| | | | | |
+-----------------------------------+----------+------------+------------+------------+
| | | 42,378.5 | 42,899.7 | 42,545.3 |
+-----------------------------------+----------+------------+------------+------------+
| Current assets | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Inventories | | 3,805.3 | 3,233.3 | 4,106.4 |
+-----------------------------------+----------+------------+------------+------------+
| Trade and other receivables | | 3,024.0 | 3,814.5 | 4,679.1 |
+-----------------------------------+----------+------------+------------+------------+
| Cash and cash equivalents | | 860.6 | 620.0 | 2,059.6 |
+-----------------------------------+----------+------------+------------+------------+
| | | 7,689.9 | 7,667.8 | 10,845.1 |
+-----------------------------------+----------+------------+------------+------------+
| Total assets | | 50,068.4 | 50,567.5 | 53,390.4 |
+-----------------------------------+----------+------------+------------+------------+
| LIABILITIES | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Current liabilities | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Trade and other payables | | (2,114.9) | (4,022.3) | (3,460.8) |
+-----------------------------------+----------+------------+------------+------------+
| Borrowings | | - | (53.0) | (3.9) |
+-----------------------------------+----------+------------+------------+------------+
| Provisions for other liabilities | | (1,271.4) | (456.3) | (525.8) |
| and charges | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Deferred income tax liabilities | | (768.8) | (768.8) | (768.8) |
+-----------------------------------+----------+------------+------------+------------+
| | | (4,155.1) | (5,300.4) | (4,759.3) |
+-----------------------------------+----------+------------+------------+------------+
| Net current assets / | | 3,534.8 | 2,367.4 | 6,085.8 |
| (liabilities) | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Non-current liabilities | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Borrowings | | (19,677.5) | (7,002.3) | (53.8) |
+-----------------------------------+----------+------------+------------+------------+
| Deferred income tax liabilities | | (6,253.9) | (6,483.9) | (6,868.4) |
+-----------------------------------+----------+------------+------------+------------+
| | | (25,931.4) | (13,486.2) | (6,922.2) |
+-----------------------------------+----------+------------+------------+------------+
| Total liabilities | | (30,086.5) | (18,786.6) | (11,681.5) |
+-----------------------------------+----------+------------+------------+------------+
| Total net assets | | 19,981.9 | 31,780.9 | 41,708.9 |
+-----------------------------------+----------+------------+------------+------------+
| | | | | |
+-----------------------------------+----------+------------+------------+------------+
| EQUITY | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Capital and reserves | | | | |
+-----------------------------------+----------+------------+------------+------------+
| Share capital | | 1,019.6 | 991.2 | 991.2 |
+-----------------------------------+----------+------------+------------+------------+
| Share premium | | 57,754.8 | 57,754.8 | 57,754.8 |
+-----------------------------------+----------+------------+------------+------------+
| Retained earnings - deficit | | (48,270.2) | (36,442.8) | (26,514.8) |
+-----------------------------------+----------+------------+------------+------------+
| Reverse Acquisition reserve | | 9,477.7 | 9,477.7 | 9,477.7 |
+-----------------------------------+----------+------------+------------+------------+
| Total shareholders' equity | | 19,981.9 | 31,780.9 | 41,708.9 |
+-----------------------------------+----------+------------+------------+------------+
| | | | | |
+-----------------------------------+----------+------------+------------+------------+
Unaudited consolidated statement of changes in shareholders' equity for the
period 1 January to 30 June 2009
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| | Share | Share | Employee | Retained | Reverse | Total Share- |
| | | | Benefit | | | |
| | | | Trust | | | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| | Capital | Premium | Reserve | Earnings | Acquisition | holders' |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| | | | | | Reserve | Equity |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| As of January 2008 | 991.2 | 57,754.8 | (2,371.8) | (15,902.9) | 9,477.7 | 49,949.0 |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Shared based payment | - | - | - | 2,995.3 | - | 2,995.3 |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Loss for the period | - | - | - | (21,092.4) | - | (21,092.4) |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Equity awards settled in | - | - | - | (66.0) | - | (66.0) |
| Cash | | | | | | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Currency translation | - | - | - | (5.0) | - | (5.0) |
| differences | | | | | | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| As at 31 December 2008 | 991.2 | 57,754.8 | (2,371.8) | (34,071.0) | 9,477,7 | 31,780.9 |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Shares issued to employee | 28.4 | - | (154.8) | - | - | (126.4) |
| benefit trust | | | | | | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Share based payments | | | | 1,500.0 | | 1,500.0 |
| | - | - | - | | - | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| | - | - | - | (13,127.0) | - | (13,127.0) |
| Loss for the period | | | | | | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Equity awards settled in | - | - | - | (46.4) | - | (46.4) |
| Cash | | | | | | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| Currency Translation | | | | 0.8 | | 0.8 |
| differences | - | - | - | | - | |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
| As at 30 June 2009 | 1,019.6 | 57,754.8 | (2,525.6) | (45,743.6) | 9,477.7 | 19,981.9 |
+----------------------------+-----------+-------------+-------------+------------+-------------------+--------------+
Reverse acquisition reserve: The reverse acquisition reserve arose as a result
of the share for share exchange undertaken when IdaTech plc acquired IdaTech UK
Limited. This reserve comprises the excess of the market value of the IdaTech
plc shares issued to the IdaTech UK Limited shareholders over and above the
nominal value of these shares.
Consolidated cash flow statement for the six months to 30 June 2009
+------------------------------------------+------+------------+------------+
| |Note | Unaudited |
| | | Six months |
| | | ended 30 June |
+------------------------------------------+------+-------------------------+
| | | 2009 | 2008 |
+------------------------------------------+------+------------+------------+
| | | US$'000 | US$'000 |
+------------------------------------------+------+------------+------------+
| Cash flows from operating activities | | | |
+------------------------------------------+------+------------+------------+
| Cash outflows from operations | | (10,674.3) | (11,439.3) |
+------------------------------------------+------+------------+------------+
| Tax paid | | - | (18.8) |
+------------------------------------------+------+------------+------------+
| Interest paid | | (546.1) | (18.1) |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Net cash outflow from operating | | (11,220.4) | (11,476.2) |
| activities | | | |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Cash flows from investing activities | | | |
+------------------------------------------+------+------------+------------+
| Purchase of property, plant and | | (318.0) | (252.3) |
| equipment | | | |
+------------------------------------------+------+------------+------------+
| Purchase of intangible assets | | (168.0) | (121.6) |
+------------------------------------------+------+------------+------------+
| Interest received | | 2.3 | 112.9 |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Net cash outflow from investing | | (483.7) | (261.0) |
| activities | | | |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Cash flows from financing activities | | | |
+------------------------------------------+------+------------+------------+
| Proceeds of issue of shares (net of | | - | - |
| expenses) | | | |
+------------------------------------------+------+------------+------------+
| Proceeds from borrowings | | 12,000.0 | 1.4 |
+------------------------------------------+------+------------+------------+
| Repayments of borrowings | | (55.3) | (1.8) |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Net cash inflow from financing | | 11,944.7 | (0.4) |
| activities | | | |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Net decrease in cash and cash | | 240.8 | (11,737.6) |
| equivalents | | | |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Cash and cash equivalents at beginning | | 620.0 | 13,797.2 |
| of the period | | | |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
| Cash and cash equivalents at end of the | | 860.8 | 2,059.6 |
| period | | | |
+------------------------------------------+------+------------+------------+
| Cash flows from operating activities | | | |
+------------------------------------------+------+------------+------------+
| Loss before tax and interest | | (12,966.3) | (10,199.9) |
+------------------------------------------+------+------------+------------+
| Adjustments for | | | |
+------------------------------------------+------+------------+------------+
| Depreciation | | 137.9 | 112.5 |
+------------------------------------------+------+------------+------------+
| Amortisation | | 1,203.8 | 984.1 |
+------------------------------------------+------+------------+------------+
| Share based payments | | 1,500.0 | 1,420.2 |
+------------------------------------------+------+------------+------------+
| Inventories | | (579.6) | (2,437.3) |
+------------------------------------------+------+------------+------------+
| Trade and other receivables | | (673.5) | (1,461.2) |
+------------------------------------------+------+------------+------------+
| Trade and other payables | | (431.0) | (0.3) |
+------------------------------------------+------+------------+------------+
| Other payables | | 1,134.4 | 63.4 |
+------------------------------------------+------+------------+------------+
| Foreign exchange movements | | - | 79.2 |
+------------------------------------------+------+------------+------------+
| Net cash generated utilised by operating | | (10,674.3) | (11,439.3) |
| activities | | | |
+------------------------------------------+------+------------+------------+
| | | | |
+------------------------------------------+------+------------+------------+
NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE
2009
1. General information
The Company is a public limited company incorporated and domiciled in the UK.
The address of its registered office is 2 Gresham Street, London, EC2V 7QP.The
Company has a listing on the AIM Market of the London Stock Exchange.The
unaudited financial information for the six months ended 30 June 2009 was
approved for issue on 30 September 2009.
These interims financial results do not comprise statutory accounts within the
meaning of section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 December 2008 were approved by the Board of Directors on 30 March
2009 and delivered to the Registrar of Companies. The report of the auditors on
those accounts was unqualified and did not contain any statement under Section
237 of the Companies Act 1985 but it did contained an emphasis of matter
regarding the future funding requirement of the business.
2. Basis of preparation
These financial statements for the six months to 30 June 2009 have been prepared
in accordance with the Disclosure and Transparency Rules of the Financial
Services Authority and with International Accounting Standard ("IAS") 34,"
Interim financial reporting" as adopted by the European Union. The six-monthly
financial information should be read in conjunction with the annual financial
statements for the year ended 31 December 2008, which have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as adopted
by the European Union.
These financial statements have been prepared on a going concern basis. The
Directors, after making appropriate enquiries, have a reasonable expectation,
that the Group has adequate resources to continue in operational existence for
the foreseeable future. For this reason the Directors have adopted the going
concern basis in preparing these financial statements.
Although the Directors expect that the net funds available together with its
other existing sources of finance will be sufficient to fund the Group for a
period of at least twelve months from the date of approval of these financial
statements, the Group is expected to require further financing beyond this time
period.
The income statement and balance sheet show no intention or necessity to
liquidate or curtail significantly the operations of the Group. Specifically,
the assets of the Group have been valued and reported on the basis that they
will be used for the purpose for which they were purchased in the ongoing
operation of the business and no liabilities have been included that may arise
on a significant curtailment of Group activities.
3. Accounting policies
The accounting policies adopted by the Group are consistent with those of the
annual financial statements for the year ended 31 December 2008, as described in
those financial statements.
NOTES TO THE UNAUDITED FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE
2009
4. Loss per share
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the company by the weighted average number of ordinary shares
in issue during the period.
+------------+--------------------+-------------------------+-----------------------+
| | Unaudited | Unaudited |
| | Six months | Six months |
| | ended 30 June | ended 30 June |
| | 2009 | 2008 |
+---------------------------------+-------------------------+-----------------------+
| | | |
+---------------------------------+-------------------------+-----------------------+
| Loss attributable to the equity | US$(13,127.0) | US$(9,739.5) |
| holders of the company | | |
+---------------------------------+-------------------------+-----------------------+
| Weighted average number of | 50,452,747 | 49,499,969 |
| ordinary shares in issue | | |
+---------------------------------+-------------------------+-----------------------+
| | | |
+---------------------------------+-------------------------+-----------------------+
| Basic loss per share (US$ per | (0.26) | (0.20) |
| share) | | |
+---------------------------------+-------------------------+-----------------------+
| |
+------------+--------------------+-------------------------+-----------------------+
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. For the share options, a calculation is done to
determine the number of shares that could have been acquired at fair value
(determined as the average annual market share price of the company's shares)
based on the monetary value of the subscription rights attached to outstanding
share options. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise of the share
options.
The impact of the share options is anti-dilutive. Therefore the diluted loss per
share is the same as the basic loss per share.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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