Interim Results
26 Septembre 2008 - 8:01AM
UK Regulatory
RNS Number : 3790E
Chromogenex PLC
26 September 2008
Chromogenex plc
(*Chromogenex* or *the Company*)
Interim Results
Chromogenex, the developer and manufacturer of cosmetic and medical laser systems, today announces its interim results for the six months
ended 30 June 2008.
Highlights:
Revenues of �1.13m (2007: �2.27m)
Medical device licence from the Canadian Health Authority for the Chromolite-S and Nlite-V
FDA approval to market and sell Chromolite EP (Enhanced Pulse), the newest version of Chromolite, in the United States * post period
end.
New product launches expected
- October launch of iLipo laser product, a non invasive alternative to liposuction
- November launch of SmoothLite, combined RF, laser and vacuum massage device for fat reduction, cellulite treatment and skin
tightening
Restructuring of business and cost reductions completed
Peter McGuinness, Chairman, commented:
*We have now completed a restructuring of the business and have made cost reductions which will save over �0.5m per annum going forward. In
addition we have seen an improvement in sales and gross margins and expect an improved performance in the second half.
*We have developed new sources of lease finance for our customers that have facilitated an improvement in direct sales in the UK. We are
confident about the business going forward and are encouraged by recent trading and distributor forecasts into 2009.
For further information:
Chromogenex plc 01554 755444
Peter McGuinness, Chairman 07775 834 777
HB Corporate 020 7510 8600
Luke Cairns
Threadneedle Communications 020 7653 9850
Graham Herring/Josh Royston
Chairman*s Statement
Chromogenex, the developer and manufacturer of cosmetic and medical laser systems, today announces the results for the six month period
ending June 30 2008.
Sales for the period were �1,134,000 compared with �2,265,000 for the same period last year. This drop in sales resulted in a loss of
�640,000 for the first half (2007 profit of �10,000). The first quarter in particular was a very difficult period, accounting for over
�500,000 of this loss for the Company. Whilst traditionally a slow time of year the market was impacted by a lack of credit available for
financing sales of our products which typically are leased by customers. In addition, we were unable to sell in key markets pending
regulatory approval which had an adverse impact on the business.
During the period, the Company resolved its issue with the Canadian Health Authority and both the Chromolite-S and Nlite-V received medical
device licences. The Board expects to recommence sales in Canada in the fourth quarter.
We have now completed a restructuring of the business and have made cost reductions which will save over �0.5m per annum going forward. In
addition, we have seen an improvement in sales and gross margins and expect an improved performance in the second half. Note 1 to these
interim results provides more details of the actions that the directors have taken to address the financing of the company.
During the fourth quarter we are also launching two new products for which we have a strong order book. Both products target the body
shaping and fat reduction market and according to Medical Insight, Inc, this sector of the market is forecast to expand by 29% per annum
through 2011. In October, we launch our iLipo laser product a non-invasive alternative to liposuction. In November, we expect to launch
SmoothLite a device which uses combined radiofrequency, laser and vacuum massage for fat reduction, cellulite treatment and skin tightening.
We believe this to be the most advanced and highest specification system on the market. We see this as a significant growth area for the
company going forward with initial sales positively impacting the fourth quarter.
We have developed new sources of lease finance for our customers that have facilitated an improvement in direct sales in the UK. We are
confident about the business going forward and are encouraged by recent trading and distributor forecasts into 2009.
Peter McGuinness
Chairman and CEO 26th September 2008
Chromogenex plc
CONSOLIDATED INCOME STATEMENT - unaudited
for the period ended 30 June 2008
Notes 6 months to30 Jun 6 months to30 Jun Year ended31 Dec
2008 �'000 2007 �'000 2007 �'000
Revenue 1,134 2,265 4,122
Cost of sales
(829) (1,519) (2,879)
_______ _______ _______
Gross Profit 305 746
1,243
Administrative expenses
(940) (733) (1,938)
_______ _______ _______
Operating (Loss)/Profit 13
(635) (695)
Finance costs (5) (3) (2)
_______ _______ _______
(Loss)/Profit on ordinary 10
activitiesbefore taxation (640) (697)
Taxation - - -
_______ _______ _______
(Loss)/Profit for the period 10
attributable to equity (640) (697)
shareholders
_______ _______ _______
Earnings per ordinary shares
(pence)
Basic 3
(1.06) p 0.02p (1.15)p
_______ _______ _______
Fully diluted 3
(1.06)p 0.01p (1.15)p
_______ _______ _______
All results relate to continuing activities.
Chromogenex plc
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY - unaudited
for the period ended 30 June 2008
Attributable to equity holders of the parent company
Sharecapital�'000 Sharepremiumaccount� Mergerreserve�'000 TotalEquity�'000
'000 RetainedEarnings�'
000
At 1 January 2007 605 1,539 (302) 505 2,347
Profit for the period - - - 10 10
_______ _______
Total recognised income and 10 10
expense for period
Exercise of warrants 4 14 - - 18
Share option costs - - - 26 26
_______ _______ _______ _______ _______
At 30 June 2007 609 1,553 (302) 541 2,401
Loss for the period - - - (707) (707)
_______ _______
Total recognised income and (707) (707)
expense for period
Share option costs - - - (6) (6)
_______ _______ _______ _______ _______
At 31 December 2007 609 1,553 (302) (172) 1,688
Loss for the period - - - (640) (640)
_______ _______
Total recognised income and (640) (640)
expense for period
Share option costs - - - 17 17
_______ _______ _______ _______ _______
At 30 June 2008 609 1,553 (302) (795) 1,065
_______ _______ _______ _______ _______
Chromogenex plc
CONSOLIDATED BALANCE SHEET - unaudited
as at 30 June 2008
Notes 30 Jun 2008 �'000 30 Jun 2007 �'000 31 Dec 2007 �'000
ASSETS
Non * current assets
Intangible assets 75 376 79
Plant and equipment 45 56 60
_______
_______ _______
120 432 139
Current Assets
Inventory 1,777
1,735 1,627
Trade and other receivables 702 866
1,291
Cash and cash equivalents - 168 130
_______
_______ _______
2,773
2,437 3,086
LIABILITIES
Current liabilities
Trade and other payables 1,358 1,041 1,126
Provisions 134 76 98
_______ _______ _______
1,492 1,117 1,224
_______
_______ _______
Non-current liabilities - - -
_______
_______ _______
NET ASSETS 1,688
1,065 2,401
_______
_______ _______
Shareholders* Equity
Share capital 609 609 609
Share premium 1,553
1,553 1,553
Merger reserve (302)
(302) (302)
Retained earnings 541 (172)
(795)
_______
_______ _______
TOTAL SHAREHOLDERS* EQUITY 1,688
1,065 2,401
_______
_______ _______
Chromogenix plc
CONSOLIDATED CASH FLOW STATEMENT - unaudited
for the period ended 30 June 2008
Notes 6 months to30 Jun 6 months to30 Jun Year ended31 Dec 2007
2008 �'000 2007 �'000 �'000
Cash flows used in operating 4 (135)
activities (367) (157)
Investing activities
Expenditure on development - (33) (81)
Purchase of plant and - (22) (34)
equipment
_______
_______ _______
Net cash outflow used in -
investing activities (55) (115)
_______
_______ _______
Financing activities
Proceeds from issue of shares - 18 18
_______
_______ _______
Net cash from financing - 18 18
activities
_______
_______ _______
Net (decrease) in cash and (232)
cash equivalents (367) (194)
Cash and cash equivalents at 130 362 362
beginning of the period
_______
_______ _______
Cash and cash equivalents at (237) 168 130
end of the period
_______
_______ _______
Chromogenex plc
NOTES TO INTERIM RESULTS - unaudited
for the period ended 30 June 2008
1 These interim results were approved by the board of directors on 24th September 2008.
The financial information contained in this interim statement has not been audited or reviewed by the Company*s auditors and does not
constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the full preceding year is
extracted from the statutory accounts for the financial year ended 31 December 2007. These accounts, upon which the auditors issued an
unqualified opinion but containing an emphasis of matter paragraph in relation to the Company*s ability to continue to operate as a going
concern, have been delivered to the Registrar of Companies.
The interim financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (�*000) except when
otherwise indicated.
Going concern
During the period, the Group incurred a loss of �640,000. As a result of the Group*s financial position, the directors have considered the
basis of preparation of the financial statements on the going concern basis.
In the light of the current market downturn the Board has been reconsidering its strategy and has made a number of decisions to re-focus the
activities of the Group. The Board has streamlined the underlying cost base of the business, started to distribute two new complementary
products into the UK market and has now obtained all regulatory approvals required in order to sell into the Canadian market. Payment plans
are in place with most of the overdue debtors as at the year end.
The directors have prepared detailed forecasts which set out the ongoing cash requirements of the business going forward. The directors
maintain regular communication with the bank and these forecasts incorporate the directors* belief that the Group*s bankers will continue to
make available the necessary level of facility. There are inherent uncertainties in the preparation of such forecasts which are not fully
under the Group*s control. Historically the Group has delivered greater sales in the second half of the year and the directors expect this
trend to continue with the planned introduction of further new products in the autumn. The directors therefore believe the assumptions used
in those forecasts are reasonable and that they have taken into account all factors that may reasonably be expected to be identified in
relation to such forecasts. On the basis of these forecasts the directors conclude that it is appropriate to prepare the interim results on
the going concern basis and the interim results do not include any adjustments that would result from the Group not being able to meet its liabilities as they fall due.
2 Chromogenex plc is a public limited company incorporated in the United Kingdom under the Companies Act 1985. The Company is
domiciled in the United Kingdom and its ordinary shares are traded on the Alternative Investment Market.
As permitted this interim report has been prepared in accordance with UK AIM listing rules and not in accordance with IAS34 *Interim
Financial Reporting* therefore it is not fully in compliance with IFRS.
3 (LOSS)/EARNINGS PER ORDINARY SHARE
The (loss) / earnings per ordinary share has been calculated using the result for the period and the weighted average number of
ordinary shares in issue during the period as follows:
30 Jun 2008 �'000 30 Jun 2007 �'000 31 Dec 2007 �'000
(Loss)/ Profit for the period (640) 10 (697)
attributable to equity
shareholders
_______ _______ _______
No. No. No.
'000 '000 '000
Basic weighted average of
ordinary shares of 1p each) 60,659 60,818 60,659
_______ _______ _______
Basic earnings (pence per
share) (1.06) 0.02 (1.15)
_______ _______ _______
Fully diluted earnings (pence
per share (1.06) 0.01
(1.15)
_______ _______ _______
As losses were incurred in the period ended 30th June 2008 and the year ended 31 December 2007, there is no dilutive effect
on the existence of shares, options and warrants. The basic and diluted earnings per share figure are therefore the same for these periods.
The weighted average number of shares for the calculation of the diluted earnings per share for the period ended 30 June
2007 was 65,470,377 reflecting the unexercised share options and warrants in place at that time.
4 RECONCILIATION OF (LOSS)/PROFIT BEFORE TAX TO NET CASH FLOW USED IN OPERATING ACTIVITIES
30 Jun 2008 �'000 30 Jun 2007 �'000 31 Dec 2007 �'000
(Loss)/profit before tax (640) 10 (697)
Amortisation - - 345
Depreciation 18 30 38
Share based payment charge 17 26 20
_______ _______
_______
Operating cashflow before (605) 66 (294)
movement in working capital
Movement in inventory 42 (532)
(382)
Movement in trade and other 164 (65) 360
receivables
Movement in trade and other 32 224 331
payables
_______ _______
_______
Net Cash used in operating (367) (135)
activities (157)
_______ _______
_______
5 COPIES OF THE INTERIM REPORT
Copies of the interim report have been sent to shareholders and are available from the company secretary at the company's registered
office * Units 1 and 2, Heol Rhosyn, Parc Dafen, Llanelli, Carmarthenshire, SA14 8QG.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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