RNS Number:3734O
NMT Group PLC
06 August 2003
6 August 2003
NMT GROUP PLC
Interim Results for the six months ended 30 June 2003
NMT Group, the provider of drug delivery solutions to prevent needlestick
injury, announces its interim results for the six months ended 30 June 2003.
Key points
- Turnover increased significantly to #5.4 million (2002: #0.9
million), double the turnover for the whole of 2002
- Operating loss reduced to #2.2 million (2002: #6.6 million
before exceptional items)
- Cost reduction efforts continue - cash outflow significantly
decreased to #1.8 million (2002: #6.1 million)
- Acquired additional intellectual property to develop safety,
retractable pre-filled syringe, complementary to in-house
development efforts
- Discussions on-going with potential partners for 2nd Generation
syringes
- RTI hearing has been further delayed until June 2004
- Net cash of #13.4 million (#15.4 million at 31 December 2002)
Commenting on the results, Roy Smith, Chief Executive Officer, said:
"We are encouraged by the Company's performance in the first six months of 2003
and expect this trend to continue in the second half. We have a strong cash
position, but securing greater certainty for 2004 and beyond remains both a
challenge and a priority for the Board."
Enquiries:
NMT Group PLC
Roy Smith, Chief Executive Officer Tel: 01506 445004
Financial Dynamics Tel: 0207 831 3113
David Yates, Sarah MacLeod
CHAIRMAN'S STATEMENT
The Group has demonstrated a significant improvement in financial performance
over the last six months, largely due to the Livingston manufacturing facility
successfully increasing production to service the Supply Agreement with Roche.
Whilst we expect this positive trend to continue in the short term, the medium
term success of this contract will depend both upon Roche's requirements beyond
2003 and our ability to further reduce production costs.
In parallel to our cost reduction efforts we continue to seek additional sales
channels for our first generation syringes. Both of these activities remain a
major priority and have received significant management attention.
Although discussions continue with several multi-national medical device
companies for our 2nd Generation syringes, successful completion of a
partnership agreement with any of these organisations has not been achieved to
date. Reviews of the integrity of our intellectual property by a number of
third parties have not identified any material issues. Ultimately, the success
of this development will depend on the size of capital investment required, the
time necessary to bring the products to market and the ability to secure
acceptable commercial terms from a prospective partner.
The Group has recently acquired additional intellectual property to develop
safety solutions for the pharmaceutical industry in the pre-fill syringe area.
Significant interest has been shown by several companies and discussions are
continuing.
Results
Turnover of #5.4m in the first half of 2003 (2002: #0.9m) was double the entire
turnover for 2002. Operating costs have remained similar to the same period
last year, which has resulted in a reduced operating loss of #2.2m (2002: #6.6m
loss before exceptional items).
The Group's net cash at the end of June 2003 was #13.4m, a decrease of #2.0m
since the end of December 2002. Cash outflow from operating activities was
#1.8m and was a significant reduction on the #6.1m outflow for the corresponding
period of 2002. This has been primarily due to the increased sales under the
Supply Agreement with Roche.
Litigation
The trial of the lawsuit brought by Retractable Technologies Inc, a US
competitor to NMT, alleging that the 1st Generation syringe infringes various
patents held by RTI has now been further delayed and is expected to be in June
2004. No new facts have emerged during the process of discovery to cause us to
change our views that we will successfully defend this action.
Board
George McLellan retired as a Non-Executive Director at the AGM in May; his
contribution to the development of the Company since listing in 1997 is greatly
appreciated.
In July Laurie Rostron joined NMT as a Non-Executive Director, bringing
significant experience of both the healthcare industry and small cap listed
companies to the Board.
Outlook
The financial performance during the first six months of 2003 is most
encouraging and we expect this trend to continue for the remainder of the year.
We have a strong cash position, but securing greater certainty for 2004 and
beyond remains both a challenge and a priority for the Board.
R H Gilmour
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 30 June 2003
Unaudited Unaudited Audited
Interim Interim Full year
2003 2002 2002
#'000 #'000 #'000
______ ______ ______
Turnover 5,433 925 2,758
______ ______ ______
Operating loss - before exceptional items (2,221) (6,601) (12,411)
Exceptional items - (2,524) (2,524)
______ ______ ______
Group operating loss (2,221) (9,125) (14,935)
______ ______ ______
Interest receivable 243 438 789
Interest payable (36) (63) (102)
______ ______ ______
Loss on ordinary activities before taxation (2,014) (8,750) (14,248)
Taxation 37 94 316
______ ______ ______
Loss for the financial period (1,977) (8,656) (13,932)
______ ______ ______
Loss per ordinary share basic and diluted (0.2)p (1.0)p (1.6)p
Loss per share before exceptional items (0.2)p (0.7)p (1.3)p
NOTES
1 Basis of preparation
The financial information in this report does not comprise statutory accounts
for the purposes of Section 240 of the Companies Act 1985.
The interim accounts for the six months ended 30 June 2003 and six months ended
30 June 2002, which are unaudited, have been prepared on the basis of accounting
policies consistent with those set out in the Company's full accounts for the
year ended 31 December 2002. The accounts for the year ended 31 December 2002
presented in this report are an abridged version of the full accounts which
carried an unqualified auditors' report and have been filed with the Registrar
of Companies.
There is no difference between the loss on ordinary activities before taxation
and the retained loss for the period stated above and their historical cost
equivalents.
2 Taxation
As a result of losses brought forward there is anticipated to be no tax charge
in the current year. The tax credit reflects a research and development tax
credit for the period.
3 Loss per share
The calculation of loss per share is based on the loss for the period
attributable to ordinary shareholders and on the average number of ordinary
shares in issue during the period, which totalled 871,131,794 shares (2002
interim - 871,131,294 : full year - 871,131,500). As a loss has been incurred
during the six months ended 30 June 2003 there is no dilutive effect of
unexercised share options.
CONSOLIDATED BALANCE SHEET
As at 30 June 2003
Unaudited Unaudited Audited
Interim Interim Full year
30 June 30 June 31 December
2003 2002 2002
#'000 #'000 #'000
______ ______ ______
Fixed assets
Tangible assets 8,867 9,815 9,385
Current assets
Stocks 824 1,243 701
Debtors 2,627 850 1,446
Cash at bank and in hand 13,351 20,410 15,406
______ ______ ______
16,802 22,503 17,553
______ ______ ______
Creditors: amounts falling due within one
year (2,389) (1,900) (1,747)
______ ______ ______
Net current assets 14,413 20,603 15,806
______ ______ ______
Total assets less current liabilities 23,280 30,418 25,191
______ ______ ______
Creditors: amounts falling due after more
than one year (232) (790) (457)
______ ______ ______
Net assets 23,048 29,628 24,734
______ ______ ______
Capital and reserves
Called up share capital 37,187 37,187 37,187
Share premium account 38,639 38,639 38,639
Profit and loss account (52,778) (46,198) (51,092)
______ ______ ______
Total equity shareholders' funds 23,048 29,628 24,734
______ ______ ______
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2003
Unaudited Unaudited Audited
Interim Interim Full year
2003 2002 2002
#'000 #'000 #'000
______ ______ ______
Reconciliation of operating loss to net cashflow from
operating activities
Operating loss (2,221) (9,125) (14,935)
Impairment of tangible fixed assets - 1,204 1,204
Depreciation of tangible fixed assets 779 885 1,734
Exchange adjustments 257 525 874
Share options - application of UITF 17 34 34 67
Exceptional stock write down - 1,320 1,320
(Increase) / decrease in stock (123) 58 600
(Increase) / decrease in debtors (1,229) (198) (467)
Increase / (decrease) in creditors 723 (844) (1,006)
______ ______ ______
Net cash outflow from operating activities (1,780) (6,141) (10,609)
______ ______ ______
Consolidated cash flow statement
Net cash outflow from operating activities (1,780) (6,141) (10,609)
Returns on investments & servicing of finance
Interest received (net) 292 363 570
Taxation - 94 94
Capital expenditure (261) (372) (791)
______ ______ ______
Net cash outflow before management of liquid
resources and financing (1,749) (6,056) (10,736)
Management of liquid resources 2,743 4,950 9,369
Net cash outflow from financing (306) (274) (598)
______ ______ ______
Increase / (decrease) in cash in the period 688 (1,380) (1,965)
______ ______ ______
Reconciliation of net cashflow to movement in
net funds
Increase / (decrease) in cash 688 (1,380) (1,965)
Cashflow from finance leases-repayments of
principle 306 274 598
Cash inflow from management of liquid
resources (2,743) (4,950) (9,369)
______ ______ ______
Decrease in net funds in period (1,749) (6,056) (10,736)
Net funds at beginning of period 14,341 25,077 25,077
______ ______ ______
Net funds at end of period 12,592 19,021 14,341
______ ______ ______
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 June 2003
Unaudited Unaudited Audited
Interim Interim Full year
2003 2002 2002
#'000 #'000 #'000
______ ______ ______
Loss on ordinary activities after taxation (1,977) (8,656) (13,932)
Exchange adjustment on translation of investment
in subsidiary 257 525 874
______ ______ ______
Total recognised losses for the period (1,720) (8,131) (13,058)
______ ______ ______
RECONCILIATION OF SHAREHOLDERS' FUNDS
For the six months ended 30 June 2003
Unaudited Unaudited Audited
Interim Interim Full year
2003 2002 2002
#'000 #'000 #'000
______ ______ ______
Loss for the period (1,977) (8,656) (13,932)
Other recognised gains for the period 257 525 874
______ ______ ______
Total recognised losses for the period (1,720) (8,131) (13,058)
Share options - notional cost of share options
granted 34 34 67
______ ______ ______
Total movements during the period (1,686) (8,097) (12,991)
Shareholders' funds at start of period 24,734 37,725 37,725
______ ______ ______
Total shareholders' funds at end of period 23,048 29,628 24,734
______ ______ ______
This information is provided by RNS
The company news service from the London Stock Exchange
END
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