TIDMCTN
RNS Number : 1421U
ClearStream Technologies Group PLC
11 October 2010
For Immediate Release
11 October 2010
ClearStream Technologies Group plc
Final Results for the Year Ended 31 July 2010
A Challenging Year with a Successful Outcome
ClearStream Technologies Group plc ("ClearStream") the specialist global
supplier of medical devices used in coronary and peripheral interventional
procedures, announces audited final results for the year ended 31 July 2010.
Key Points
· Revenues of EUR15.1m (2009:EUR13.9m)
· Profit before tax of EUR0.5m (2009: EUR1.9m)
· Net cash balances of EUR2.6m at year end (2009: EUR2.9m)
· ClearStream branded sales show further progress in difficult market
conditions; healthy growth in sales to BRIC territories, continued advance in
OEM sales with significant H2 growth
· Further growth in co-labelling sales
· Substantial investment in re-organising manufacturing facilities to meet
growth in demand and quality of production
· Significant extension to co-labelling agreement with Cordis
· First payment milestones achieved with CR Bard
· International distributor network further strengthened and expanded
· Positive outlook for FY 2011
Commenting on the results, Andy Jones, Group CEO of ClearStream said:
"The strategies that ClearStream has consistently pursued over the past three
years now place the Company in a strong, resilient commercial position. We are
experiencing strong demand for our expanded and differentiated product range
across the two broad but distinct interventional markets that we are focussed on
and have achieved a good revenue balance between these.
On current trading and prospects, Mr Jones added:
"Looking forward we anticipate another year of sales and profits growth. We have
an open order book of circa EUR3m, which is at a record level.
"The recent extensions to our co-labelling contract with Cordis and approval of
their products for sale in Japan combined with additional FDA approvals together
with the strength of demand from OEM customers will, we believe, underpin
ClearStream's continued positive progress in the new financial year."
Enquiries:
Andy Jones, Group CEO
ClearStream Technologies Group plc Tel: +353 (0)53 923
7111
Stephen Norcross - Corporate Broking
Marc Young - Corporate Finance
Charlotte Stranner - Corporate Finance
FinnCap Tel: +44
(0)20 7600 1658
Paul Vann/Tom Cooper
Winningtons Financial Tel: +44 (0)117
9858989 or +44 (0)7768 807631
ClearStream Technologies Group plc
Final results for the year ended 31 July 2010
Overview
Despite the continued turbulence in the international markets that we serve,
ClearStream's overall performance in the financial year ending July 31 2010 has
been in line with the Board's plans and expectations.
The year was our second successive year of profitable trading and the underlying
trends in trading are very encouraging when adjusting our prior year result for
the one off exceptional gain made last year, when we reported net profits of
EUR1.9m after recognising a one off gain of EUR1.4m derived from a significant new
contract with CR Bard.
For the first half of FY2010 the Company traded at a loss with throughput of
manufactured product at substantially reduced levels: this was due to the
planned re-engineering of our manufacturing and production facilities and the
recruitment and training of additional production staff to meet the growth in
demand for product. The second half saw this picture reverse with throughput and
yields rising rapidly and the Company generating a steady growth in profits.
Throughout the year we have been supply, as opposed to demand, constrained but,
with the re-organisation now largely completed, we are rapidly rebuilding
inventories. We are now operating 4 production lines on a single piece flow
principle for two shifts a day, 5 days a week. There are further efficiency
gains to make and plans in place to open a fifth production line.
Our long term strategy is to build a differentiated high margin range of product
offerings in two broad but distinct interventional markets, striving to achieve
a good revenue balance between these markets: one is the sale of Intrepide,
ClearStream's drug eluting coronary stent, into a specific high risk category of
patients, which includes diabetic patients; the second is the sale of specialist
peripheral angioplasty catheters for limb salvage, which includes the treatment
of the diabetic foot condition.
At the end of FY2009 we raised EUR3.7m net by way of a placing of new shares of
which circa EUR2.8m has been utilised in the acquisition from Icon of the
world-wide rights to Intrepide, our drug eluting stent, and the subsequent
transfer of the Intrepide manufacturing facilities to Ireland. A final further
payment of $1.5m is expected to fall due to Icon early in FY2011 when the
transferred process is successfully validated. This transaction secured the line
of supply and world-wide exclusivity for one of our flagship coronary products.
The money raised has also been used to support continued clinical studies to
build the marketing platform for Intrepide.
Further detail is given below on the progress made in building a market position
for Intrepide and on the technical manufacturing challenges we face. However it
is fair to say that more progress has been made during the year in building
sales of our specialist peripheral angioplasty devices. ClearStream now has one
of the most advanced and comprehensive portfolios of angioplasty catheters for
lower limb procedures and occupies a strong position in this market space, which
is set for continued rapid growth as health care systems respond to the
increasing incidences of these conditions caused in part by lifestyle choices
and diabetes. Our track record of bringing new product to market and in
establishing successful partnerships with leading multi-national players has
given us unrivalled access to the US market, the largest market for peripheral
devices. Further product announcements can be anticipated in FY2011 as we
continue our portfolio expansion targeted at this higher margin segment of our
business.
Two particularly noteworthy trends across the year have been the growth in
demand for our peripheral products which now account for close to 63% of sales.
We are particularly encouraged by the level of sales achieved in the USA and the
growth in demand from the BRIC territories (Brazil, India, Russia, China) for
both coronary and peripheral devices. We have been focusing on the BRIC
territories in order to offset the weaker trend in demand reported last year
from our traditional markets in Europe. Only 4 years ago peripheral sales
accounted for less than 3% of sales.
The total expenditure on IP, property, plant and equipment during the year was
EUR0.4m (2009: EUR2.5m). This spend was on the re-engineering of the production
facility. At year end our total number of employees was 230 (2009: 162).
Looking forward our overall strategy remains one of targeting for growth in
niche markets. We have invested significantly in developing the business and
will be investing further in new product and new facilities.
We have also been investing in developing the management team. We announced in
January 2010 the appointment of Professor Patrick John Prendergast as a
non-executive director of the Company and the resignation of Patrick McGrath
from the Board.
Professor Prendergast (44) is Professor of Bio-engineering, Vice-Provost and
Chief Academic Officer of Trinity College Dublin and an award winning researcher
with many papers published in peer reviewed journals. As an internationally
recognised researcher he brings to ClearStream a wealth of experience in the
field of biomedical engineering and specific knowledge of arterial and
peripheral stent technology.
Patrick McGrath had been a non executive member of the Board for nine years, a
period in which ClearStream evolved from a private manufacturing company with a
single product line to a public company with an established line of world-class
products and a growing international reputation. His contribution over this
period is much appreciated.
The progress made to date and the strategies being pursued by the Board give
solid ground for optimism
Outlook
Looking forward we anticipate another year of sales and profits growth and
anticipate making further substantial progress towards our objective of becoming
the leading European manufacturer of angioplasty products.
Traditionally the early part of each financial year is our weakest trading
period. However with an open order book of circa EUR3m, which is at a record
level, we anticipate making a strong start to the new financial year. The early
indications are that these positive trends in demand for product are continuing
across the first quarter of the new financial year.
The recent extensions to our co-labelling contract with Cordis and approval of
their products for sale in Japan combined with additional FDA approvals together
with the strength of demand from OEM customers will we believe underpin
ClearStream's continued positive progress in the new financial year.The co-label
and OEM channels to market give the Company best forward visibility of income
streams and the anticipated level of sales in these channels for the first
quarter of FY2011 are a positive indicator of the continuing momentum in our
markets.
Overall we are targeting further growth across all channels with a continued
strong focus on the North American and BRIC markets for our ClearStream branded
products, seeking to exploit our leadership position in the sale of peripheral
angioplasty product. New product releases are already scheduled that will
further differentiate ClearStream as a market leader in these markets.
We will continue to implement our proven strategy of expanding and developing
ClearStream's core activities, exploiting and further developing our world-class
product range with what is now an internationally recognised brand.
CEO's Review
The strategies that ClearStream has consistently pursued over the past three
years have now placed it in a strong, resilient commercial position. We are
experiencing strong demand for our expanded and differentiated product range
across the two broad but distinct interventional markets.
With respect to the peripheral devices market, over the past 3 years,
ClearStream has built a strong market position and brand recognition through its
emphasis on the treatment of critical limb ischemia and diabetic foot. This
emerging market is showing rapid growth as health care systems respond to the
increasing incidences of these conditions caused for example by poor lifestyle
and diabetes. ClearStream has built what the Directors believe to be one of the
most advanced and comprehensive portfolios of angioplasty catheters for lower
limb procedures. It has moreover further new advanced products in the pipeline.
The Company also has a track record of establishing successful partnerships with
leading multi-national players in this arena. We have broadened and strengthened
our channels to market through distribution agreements and partnerships using
well established companies, including CR Bard and Cordis (J&J), to develop sales
of peripheral products world-wide and particularly in the US market.
We announced during the year, signature of a 5-year contract with Advanced
Vision Medical Technologies GmbH, based in Switzerland for the purchase of a
range of new self-expanding stents for use in the peripheral vascular arteries
above and below the knee. The stents will be distributed globally by
ClearStream, subject to obtaining regulatory approval in specific markets,
through the ClearStream network of distributors under the brand name
"SilkenFlex". It is estimated that stents are used in 35 per cent of all
peripheral vascular procedures. With annual growth rates across Europe for these
procedures running at between 14 and 17 percent this is an attractive market for
ClearStream and a key part of the Company's future strategy. The SilkenFlex will
be supplied in a range of sizes compatible with and complementary to
ClearStream's portfolio of peripheral balloon products.
With respect to the coronary market our CoCr stent (the Satinflex) was our
single most rapidly growing product in FY 10. Further variants of this product
are scheduled for release in the new financial year. We have also made good
progress in building the clinical case for Intrepide, ClearStream's drug eluting
coronary stent, as the product of choice for a niche category of high risk
patients, which includes diabetic patients. We continue to anticipate that the
studies currently being undertaken will help ClearStream build a strategic,
global marketing platform for future sales.
ClearStream's DES Intrepide uniquely uses the drug Trapidil in its coating. It
is believed that Intrepide may offer benefits over the first generation of DES
by having a lower risk of a potentially fatal problem known as Late Stent
Thrombosis (LST). Because of concerns over LST with certain classes of patients,
there is a requirement for an alternative device, particularly for diabetic
patients and other classes of patients where prolonged anti-platelet therapy is
not an option. Intrepide received CE Mark approval for an indication for use in
diabetics in April 2009.
Evidence of the benefits offered by the Intrepide is steadily building from the
registries and trials that ClearStream is running. The first registry, PATIENT
APT, run in Pakistan, indicated the safety and efficacy of Intrepide and that it
could potentially be used with a shortened (3-month) anti-platelet regime.
The current registry is ICLARITY, which is for post-market surveillance is
designed to monitor efficacy in a large patient population. The ICLARITY
Steering Committee was convened in the second half of FY2010 to review data to
date. It concluded that data to date demonstrated both clinical and procedural
success and that the stent had been shown to be safe and effective as a drug
eluting stent. Data collection is ongoing.
The OISTER Trial is a randomised clinical trial, which will compare
re-endothelialisation at 45 days between Intrepide and the Boston Taxus DES.
Patient recruitment has been slower than originally expected due to the very low
incidence of the patient condition required for inclusion in the uniquely
designed study. However this design has enabled the primary end point to be
achieved with a lower patient number than originally envisaged. Data was
presented at TCT in Washington during September 2010 showing complete
re-endothelialisation in Intrepide at 45 days. This may enable patients
implanted with Intrepide to be removed from DAPT at 45 days compared to
recommendations of 12 months or more for other DES. This will require regulatory
approval and Further trials may be required to confirm this potential.
ClearStream experienced solid growth during the year in the co-label sales
channel driven initially by the contract manufacturing arrangement made with CR
Bard ("Bard"). This agreement was initially announced in May 2009 and is for the
supply of peripheral catheters to Bard's specifications. At the end of the
first half, the distribution contract with Cordis was extended to 2014 and a new
peripheral catheter was added to the product range. ClearStream expects to
commence supply of this device to Cordis in the first half of FY2011. The second
half of FY2010 saw rapid growth in demand from both customers in this channel
and this led the requirement for further additional manufacturing capacity over
this period. Looking into the next financial year ClearStream believes that
further growth has the potential to be achieved through the co-label channel,
driven by new product releases.
We were also pleased to announce a number of regulatory approvals through the
year, such as that from the US Food and Drug Administration ("FDA") for
ClearStream's ground breaking Bantam Alpha family of catheters. The Bantam
Alpha catheter has been on the market in Europe and other territories for almost
a year and has proven to be one of very few catheters that can be used
successfully in the "Plantar Loop Technique", an interventional procedure to
restore blood flow to promote healing of ulcers in diabetic foot. It is also
used in other peripheral angioplasty procedures. By gaining FDA approval for
the Bantam Alpha, ClearStream has now cleared the regulatory pathway to supply
this market leading product to many more markets across the world.
There was little growth in own brand product revenue in the first half of the
year. However, it would appear that during this period distributors ceased
running inventory levels down and began the process of restocking. Our strategy
of focusing on the BRIC territories delivered the anticipated growth in demand
for both coronary and peripheral devices in the second half and looks set to
continue well into the new financial year. In this period we saw stocking orders
from a number of new distributors appointed in the emerging markets of South
America, India, Russia and the Far East and more generally from across the
board. ClearStream's success during the year with SatinFlex followed the
announcement that regulatory approval had been granted for the sale of the
device in Brazil. We now have nine products that have been licensed by ANVISA,
the regulatory authority of Brazil. The SatinFlex stent is a low profile
flexible coronary CoCr stent with a low nickel surface layer. Brazil has a
population of 196 million and it is estimated that there are over 72,000
coronary stents implanted annually with as many as 70% of these believed to be
CoCr stents. The SatinFlex is being sold through Line Life, ClearStream's
distributor in Brazil, which also successfully distributes a number of
ClearStream's peripheral catheters.
Arrangements are now in place for ClearStream branded products to be sold
throughout the whole of India under a new distribution agreement with Vascular
Solutions PV Ltd ("Vascular Solutions") of Mumbai. Vascular Solutions has many
years' experience in the supply of coronary and peripheral devices and an
extensive sales network which supplies a large and growing customer base across
the Indian sub-continent. India is a potentially very large and exciting growth
market for ClearStream and the Company anticipates that it will become one of
its top performing territories over the next few years.
ClearStream also expects China to become a significant market for its products
and received notification during the year of approval by the SFDA (State Food
and Drug Administration, China) for a range of its angioplasty peripheral
balloon catheters to be sold in China. The products will be distributed by
Shanghai Micro Medical under the brand names ReeKross, ReeKross 14, ReeKross 18,
Bantam and LitePAC PTA Balloon Dilation Catheters.
Financial Results
ClearStream recorded a gross profit for the year to 31 July 2010 of EUR4.4m (2009:
EUR5.7m). Net profit for the year was EUR0.5m (2009: EUR1.9m); this figure is stated
after charging R&D and regulatory costs of EUR1.70m (2009: EUR1.10m), which were
fully expensed across the period.
As anticipated FY2010 was a year of two halves: trading during the first half of
the year was affected by a number of factors. An initial down drift in OEM and
distributor driven demand for own brand product was offset by growth in demand
for co-labelled products. However as the first quarter of the year is seasonally
the least busy for the Company, we elected to reorganise manufacturing lines and
production procedures very substantially during the early months of the year to
allow ClearStream to cope with the anticipated growth in demand in the second
half. This resulted in the Company not being able to manufacture sufficient
product to meet demand in the first half of the year and we entered the second
half of the year with an open order book in excess of EUR2.5m.
The changes that were implemented during the first quarter took time to bed down
and we saw a strong progressive improvement in both throughput and gross margins
building at the end of the first half and continuing into the second half of the
year. As expected, demand from distributors, co-label and in particular OEM
customers picked up sharply and the losses of the first half were turned into a
net profit before tax of EUR0.5m for the full year. These results include a
one-off payment of EUR0.4M under the Bard contract recognised in the third
quarter.
Despite the challenging economic conditions prevailing for most of the year, the
underlying growth in sales was close to 18% and stronger than the headline
figures suggest. Headline sales for FY2010 were EUR15.1m up 8% from the previous
year (2009: EUR13.9m). However in FY2009 we recognised a one off gain of EUR1.4m
derived from a significant contract with Bard: in FY 10 there was a further one
off payment from Bard amounting to EUR0.4m. Stripped of these one off payments
the underlying sales figures were EUR12.5m in FY2009 and EUR14.7m in FY2010 an 18%
increase.
Comparing sales on a like for like basis ClearStream brand product revenues were
flat at EUR5.3m (2009: EUR5.3m), OEM revenues were marginally down at EUR3.0m (2009:
EUR3.2m) and co-labelling sales at EUR6.7m showed further healthy growth (2009:
EUR5.4m).
These annual sales volumes however mask some underlying patterns that are
important when planning for FY2011: OEM sales more than doubled in the second
half of the year compared to the first half, with sales in the final quarter 25%
up on sales in the third quarter. We anticipate this trend continuing into
FY2011 as we build on newly established relationships with business partners in
key sectors.
Similarly we saw a strong growth in ClearStream brand sales in the second half
of the year, with the Company posting half on half growth figures of close to
30% driven almost entirely from demand for our peripheral products.
In our co-labelling channel we saw a growth in sales of more than 65% between
the first and second half. Recent negotiations with both Cordis and CR Bard
would indicate that this trend will continue with further growth to be expected
during FY 11 for the sale of co-label peripheral product into the North American
markets.
The growth recorded in peripheral sales during FY2010 and the further
anticipated growth in FY2011 is significant since these revenues represent the
new niche devices with higher margin potential which are targeted at markets
where there are fewer competitive pressures. The proportion of peripheral
revenues as compared to coronary revenues has risen to circa 60% (2008: 30%).
Despite the growth in revenues from North America we are not directly exposed to
currency fluctuations as sales are denominated in Euros.
At the end of the year the Group had a net cash balance of EUR2.6m (2008: EUR2.9m).
Term loan and long term debt stood at EUR1.7m (EUR1.3m repayable over 10 years and a
further EUR0.4m repayable over 5 years) (2009: EUR2.0m) secured against a fixed
charge on the Group's property, which was valued in 2005 at EUR2.5m (the net book
value of the property is EUR1.5m). At year-end, the short-term loan, bank
overdraft and invoice discount debt stood at EUR0.24m (2009: EUR0.41m).
The total expenditure on property, plant and equipment during the year was EUR0.4m
(2009: EUR0.5m). This spend was almost entirely to standardise and upgrade our
manufacturing lines.
The negative cash flow seen in first half of the year reversed in the second
half reflecting the trend of improved margins and the economies of scale which
resulted from the higher level of sales revenue. This trend is expected to
continue into the new financial year.
Despite a strengthening balance sheet and improving cash flows, we continue to
focus on efficiently managing our working capital . Our working capital
requirement increased during the year due to increased sales. We continue to
keep tight control on credit with our customers and keep inventory as low as
possible without impacting on our service levels to our customers. We have
remained within credit terms with all suppliers throughout the year. The
continued positive working relationship of our suppliers will also assist in the
management of our forward working capital requirements.
+------------------------------------+-------+-----------------------+-----------------------+
| Consolidated Income Statement | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| For the year ended 31 July 2010 | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| |Notes | 2010 | 2009 |
+------------------------------------+-------+-----------------------+-----------------------+
| | | EUR | EUR |
+------------------------------------+-------+-----------------------+-----------------------+
| Revenue | 2 | 15,087,069 | 13,872,119 |
+------------------------------------+-------+-----------------------+-----------------------+
| Cost of Sales | | (10,657,513) | (8,191,184) |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Gross Profit | | 4,429,556 | 5,680,935 |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Selling & distribution costs | | (1,135,389) | (1,280,129) |
+------------------------------------+-------+-----------------------+-----------------------+
| Administration expenses | | (991,763) | (1,137,094) |
+------------------------------------+-------+-----------------------+-----------------------+
| Research & development expenses | | (1,677,038) | (1,132,625) |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Operating Profit | 3 | 625,366 | 2,131,086 |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Exceptional Item | | | |
| | | - | - |
+------------------------------------+-------+-----------------------+-----------------------+
| Finance Income | | 11,184 | 4,072 |
+------------------------------------+-------+-----------------------+-----------------------+
| Finance Costs | | (106,202) | (200,256) |
+------------------------------------+-------+-----------------------+-----------------------+
| Finance Costs net | | (95,018) | (196,184) |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Profit attributable to equity | | 530,349 | 1,934,903 |
| holders of the company before tax | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Income tax | | | |
| | | - | - |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Profit attributable to equity | | 530,349 | 1,934,903 |
| holders of the company for the | | | |
| year | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
| Diluted earnings per share (cent) | 4 | 1.12c | 6.51c |
+------------------------------------+-------+-----------------------+-----------------------+
| | | | |
+------------------------------------+-------+-----------------------+-----------------------+
+------------------------------------+----+-------------------------+------------------------+
| Consolidated Balance Sheet | | | |
+------------------------------------+----+-------------------------+------------------------+
| Year ending 31 July 2010 | | | |
+------------------------------------+----+-------------------------+------------------------+
| | | 2010 | 2009 |
+------------------------------------+----+-------------------------+------------------------+
| ASSETS | | EUR | EUR |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Non-current assets | | | |
+------------------------------------+----+-------------------------+------------------------+
| Property, plant | | 2,805,187 | 2,883,700 |
| and equipment | | | |
+------------------------------------+----+-------------------------+------------------------+
| Intangible assets | | 1,971,783 | 1,992,821 |
+------------------------------------+----+-------------------------+------------------------+
| | | 4,776,970 | 4,876,521 |
+------------------------------------+----+-------------------------+------------------------+
| Current assets | | | |
+------------------------------------+----+-------------------------+------------------------+
| Inventories | | 1,619,193 | 1,896,341 |
+------------------------------------+----+-------------------------+------------------------+
| Trade and other receivables | | 2,900,755 | 1,518,707 |
+------------------------------------+----+-------------------------+------------------------+
| Cash and cash equivalents | | 2,631,977 | 2,893,438 |
+------------------------------------+----+-------------------------+------------------------+
| | | 7,151,925 | 6,308,486 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Total assets | | 11,928,895 | 11,185,007 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| EQUITY | | | |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
| Capital and reserves attributable | | | |
| to equity holders of the company | | | |
+------------------------------------+----+-------------------------+------------------------+
| | |
+-------------------------------------------------------------------+------------------------+
| Ordinary shares | | 5,788,502 | 5,760,671 |
+------------------------------------+----+-------------------------+------------------------+
| Share premium | | 16,914,297 | 16,874,628 |
+------------------------------------+----+-------------------------+------------------------+
| Other reserves | | 367,301 | 338,355 |
+------------------------------------+----+-------------------------+------------------------+
| Retained losses | | (15,716,133) | (16,246,482) |
+------------------------------------+----+-------------------------+------------------------+
| Capital and reserves attributable | | | |
| to equity of the | | | |
+------------------------------------+----+-------------------------+------------------------+
| company | | 7,353,967 | 6,727,172 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Minority interest in equity | | 120 | 120 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Total equity | | 7,354,087 | 6,727,292 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| LIABILITIES | | | |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Non-current liabilities | | | |
+------------------------------------+----+-------------------------+------------------------+
| Borrowings | | 1,527,347 | 1,798,194 |
+------------------------------------+----+-------------------------+------------------------+
| Government grants | | 229,279 | 202,087 |
+------------------------------------+----+-------------------------+------------------------+
| | | 1,756,626 | 2,000,281 |
+------------------------------------+----+-------------------------+------------------------+
| Current liabilities | | | |
+------------------------------------+----+-------------------------+------------------------+
| Borrowings | | 237,848 | 406,140 |
+------------------------------------+----+-------------------------+------------------------+
| Trade and other payables | | 2,032,323 | 1,450,696 |
+------------------------------------+----+-------------------------+------------------------+
| Deferred income | | 548,011 | 600,598 |
+------------------------------------+----+-------------------------+------------------------+
| | | 2,818,182 | 2,457,434 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Total liabilities | | 4,574,808 | 4,457,715 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| Total equity and liabilities | | 11,928,895 | 11,185,007 |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
| | | | |
+------------------------------------+----+-------------------------+------------------------+
+--------------------------------------+--+-----+---------------------------+------------------------+
| | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| Consolidated Cash Flow Statement | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| for the year ending 31 July 2010 | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| | | 2010 | 2009 |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash flows from operations | | EUR | EUR |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash inflow from operations | | 598,064 | 1,133,619 |
+--------------------------------------+--------+---------------------------+------------------------+
| Interest received | | 11,184 | 4,072 |
+--------------------------------------+--------+---------------------------+------------------------+
| interest paid | | (118,201) | (200,256) |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash flows from operations | | 491,047 | 937,435 |
+--------------------------------------+--------+---------------------------+------------------------+
| | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash flows from investing activities | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| Purchases of plant and equipment | | (352,788) | (475,604) |
+--------------------------------------+--------+---------------------------+------------------------+
| Additions to intangible assets | | (215) | (1,988,434) |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash outflows from investing | | (353,003) | (2,464,038) |
| activities | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash flows from financing activities | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| Proceeds from issuance of ordinary | | | 4,558,949 |
| share | | - | |
+--------------------------------------+--------+---------------------------+------------------------+
| Cost of issuance of ordinary shares | | | (277,188) |
| | | - | |
+--------------------------------------+--------+---------------------------+------------------------+
| Proceeds from debt factoring | | (181,341) | (23,038) |
+--------------------------------------+--------+---------------------------+------------------------+
| Proceeds from borrowing | | | 164,000 |
| | | - | |
+--------------------------------------+--------+---------------------------+------------------------+
| Proceeds from leasing obligations | | | 35,450 |
| | | - | |
+--------------------------------------+--------+---------------------------+------------------------+
| Proceeds from capital grant | | 39,634 | - |
+--------------------------------------+--------+---------------------------+------------------------+
| Repayments of borrowings | | (249,373) | (124,948) |
+--------------------------------------+--------+---------------------------+------------------------+
| Repayments of leasing obligations | | (8,425) | (7,220) |
+--------------------------------------+--------+---------------------------+------------------------+
| Cash flows from financing activities | | (399,505) | 4,326,005 |
+--------------------------------------+--------+---------------------------+------------------------+
| | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| Net (decrease)/ increase in cash, | | | |
| cash equivalents and | | | |
+--------------------------------------+--------+---------------------------+------------------------+
| bank overdrafts | (261,461) | 2,799,402 |
+-----------------------------------------------+---------------------------+------------------------+
| Cash, cash equivalents and bank | | 2,893,438 | 94,036 |
| overdrafts at beginning of year | | | |
+-----------------------------------------+-----+---------------------------+------------------------+
| | | 2,631,977 | 2,893,438 |
+--------------------------------------+--------+---------------------------+------------------------+
| | | | | |
+--------------------------------------+--+-----+---------------------------+------------------------+
Notes to the Consolidated Financial Statements
(1) Basis of preparation
The financial statements are presented in EUR, which represents the functional
currency of the Group as it is the currency of the primary economic environment
in which the Group operates.
They are prepared on the historical cost basis except that financial instruments
held for trading are recorded at their fair value.
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period of
the revision and future periods if the revision affects both current and future
periods.
Judgements made by management in the application of IFRS that have significant
effect on the financial statements and estimates with a significant risk of
material adjustment in the next year are discussed in note 4.
The accounting policies set out below have been applied consistently to all
periods presented in these consolidated financial statements and in preparing an
opening IFRS balance sheet at 1 January 2004 for the purposes of the transition
to IFRS.
The accounting policies have been applied consistently by Group entities.
+----------------------+----------+--------+----------------------------------+----------------------+
| 2. Turnover | | | | |
| | | | | |
+----------------------+----------+--------+----------------------------------+----------------------+
| Based on the risks and returns, the Directors consider the primary |
| reporting format is by business segment. The Directors consider there |
| is one centrally managed business segment being the design and |
| manufacture of medical devices. Therefore the disclosure for the |
| primary reporting segment has already been given in these financial |
| statements. The secondary reporting format is by geographical |
| analysis. All of the group's production facilities are in Ireland, the |
| secondary reporting format is based on the geographical location of |
| customers as follows: |
+----------------------------------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+----------------------+----------+--------+----------------------------------+----------------------+
| | | | EUR | EUR |
+----------------------+----------+--------+----------------------------------+----------------------+
| Turnover by | | | | |
| destination: | | | | |
+----------------------+----------+--------+----------------------------------+----------------------+
| EU Countries | | | 4,451,843 | 3,632,077 |
+----------------------+----------+--------+----------------------------------+----------------------+
| Rest of Europe | | | 464,551 | 1,558,288 |
+----------------------+----------+--------+----------------------------------+----------------------+
| Far East | | | 1,526,819 | 1,594,029 |
+----------------------+----------+--------+----------------------------------+----------------------+
| Middle East | | | 134,548 | 219,819 |
+----------------------+----------+--------+----------------------------------+----------------------+
| Americas | | | 8,254,112 | 6,758,213 |
+----------------------+----------+--------+----------------------------------+----------------------+
| Rest of World | | | 255,196 | 109,694 |
+----------------------+----------+--------+----------------------------------+----------------------+
| | | | 15,087,069 | 13,872,119 |
+----------------------+----------+--------+----------------------------------+----------------------+
| | | | | |
+----------------------+----------+--------+----------------------------------+----------------------+
| The amount of turnover by class of | | |
| business activity is as follows: | | |
+------------------------------------------+----------------------------------+----------------------+
| | | | 2009 | 2008 |
+----------------------+----------+--------+----------------------------------+----------------------+
| | | | EUR | EUR |
+----------------------+----------+--------+----------------------------------+----------------------+
| Sales of medical | | | 15,087,069 | 13,872,119 |
| devices | | | | |
+----------------------+----------+--------+----------------------------------+----------------------+
| | | | 15,087,069 | 13,872,119 |
+----------------------+----------+--------+----------------------------------+----------------------+
| | | | | |
+----------------------+----------+--------+----------------------------------+----------------------+
+----+------------------------+------+----+-------+----+------------------+--+------------+--+-+
| 3. Expenses | | | | | |
+-----------------------------+-----------+-------+--------------------------+------------+----+
| | | | 2010 | 2009 | |
+-----------------------------+-----------+-------+--------------------------+---------------+-+
| | | | EUR | EUR | |
+-----------------------------+-----------+-------+--------------------------+---------------+-+
| | The following items have been included in | | |
| | arriving at the operating profit | | |
+----+-------------------------------------------------+------------------+--------------------+
| | | | | | |
+----+-------------------------------+------------+----+------------------+--------------------+
| | Depreciation | | | 431,301 | 440,282 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Amortisation | | | 21,253 | 24,114 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Materials and consumables | | | 5,048,334 | 3,658,431 |
| | used | | | | |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Other manufacturing costs | | | 994,646 | 706,865 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Employee benefits expenses | | | 5,936,596 | 4,876,094 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Auditors remuneration | | | | |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | - for audit services | | | 51,347 | 62,450 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | - for other services | | | 8,850 | 17,800 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Government grants - capital | | | (12,442) | (7,488) |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Non labour related research and | | 762,210 | 384,999 |
| | development expenses | | | |
+----+--------------------------------------------+----+---------------------+-----------------+
| | Directors remunerations: | | | | |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | - Salaries | | | 469,494 | 425,946 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | - Fees | | | 67,669 | 73,947 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | - Share option scheme | | | 22,167 | 26,627 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | - Pensions | | | 38,336 | 33,520 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | Other administration, selling and | | 621,940 | 1,017,445 |
| | distribution expenses | | | |
+----+--------------------------------------------+----+---------------------+-----------------+
| | | | | 14,461,701 | 11,741,032 |
+----+-------------------------------+------------+----+---------------------+-----------------+
| | | | | | |
+-----------------------------+-----------+-------+--------------------------+------------+----+
| | | | | | | | | | | |
+----+------------------------+------+----+-------+----+------------------+--+------------+--+-+
+------------------------+--------+----------+-------+---+--------+----------+-------------+--------------+----------+
| 4. Earnings per share | | | | |
+--------------------------------------------+-----------+---------------------------------+--------------+----------+
| | |
+---------------------------------------------------------------------------------------------------------+----------+
| Basic earnings per share are calculated by dividing the profit/(loss) attributable to equity holders of the |
| company by the weighted average number of ordinary shares in issue during the period. |
+--------------------------------------------------------------------------------------------------------------------+
| | | | | | |
+------------------------+-------------------+-----------+---------------------------------+--------------+----------+
| | | | 2009 | 2008 | |
+------------------------+-------------------+-------------------------------+-------------+--------------+----------+
| | | | EUR | EUR | |
+------------------------+-------------------+-------------------------------+-------------+--------------+----------+
| Profit/(loss) attributable to the equity holders of the company | 530,349 | 1,934,903 | |
+----------------------------------------------------------------------------+-------------+--------------+----------+
| | | | |
+----------------------------------------------------------------------------+-------------+--------------+----------+
| Weighted average number of ordinary shares for basic EPS | 46,184,088 | 28,846,571 | |
+----------------------------------------------------------------------------+-------------+--------------+----------+
| Effect of potential dilutive ordinary shares - | | 1,091,111 | 749,964 | |
| share options | | | | |
+----------------------------------------------------+-----------------------+-------------+--------------+----------+
| | | | | |
+--------------------------------------------+-------------------------------+-------------+--------------+----------+
| Weighted average number of ordinary shares for diluted | | 47,275,199 | 27,018,633 | |
| EPS | | | | |
+--------------------------------------------------------+-------------------+-------------+--------------+----------+
| | | | | |
+-----------------------------------------------------------------+----------+-------------+--------------+----------+
| Diluted earnings per share have been calculated after adjusting the weighted average number of share used in |
| the basic calculation to assume the conversion of all potentially dilutive shares. |
+--------------------------------------------------------------------------------------------------------------------+
| | | | | | |
+------------------------+-------------------+-------------------------------+-------------+--------------+----------+
| Basic earnings per share (cent | | | 1.15cent | 6.70cent | |
| per share) | | | | | |
+---------------------------------+----------+-------------------------------+-------------+--------------+----------+
| | | | | | |
+------------------------+-------------------+-------------------------------+-------------+--------------+----------+
| Diluted earnings per share | | | 1.12cent | 6.51cent | |
| (cent per share) | | | | | |
+---------------------------------+----------+-------------------------------+-------------+--------------+----------+
| | | | | | |
+---------------------------------+----------+-------------------------------+-------------+--------------+----------+
| | | | | | | | | | |
+------------------------+--------+----------+-------+---+--------+----------+-------------+--------------+----------+
5. Other
The financial information set out in this document does not constitute full
statutory financial statements for the year ended 31 July 2010 or 31 July 2009
but is derived from same. It has been prepared under historical cost convention
using the same accounting policies as detailed in the 2009 financial statements.
A copy of the audited Annual Report for 2010 will be mailed to shareholders in
November and will also be available for collection from the ClearStream's
Offices at Moyne Upper Enniscorthy Co. Wexford. The Annual Report may also be
viewed on the company's website at www.clearstream.ie.
The Company's Annual General Meeting will be held at the Company's premises in
Enniscorthy on 9th December 2010 at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGGUAUUPUGRU
Clearstream (LSE:CTN)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Clearstream (LSE:CTN)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024