RNS Number:5264H
Cytomyx Holdings PLC
19 January 2005
For immediate release 19 January 2005
CYTOMYX HOLDINGS PLC
("Cytomyx" or "the Company")
Preliminary results for the year ended 30 September 2004
Cytomyx Holdings plc (AIM: CYX), the leading provider of drug discovery products
and services, is pleased to announce its full year results for the year ended 30
September 2004.
Highlights:
* Turnover up 11 per cent at #5.66 million (2003: #5.10 million)
* Gross profit up 32 per cent at #3.38 million (2003: #2.56 million)
* Gross profit margin 60 per cent (2003: 50 per cent)
* Net loss #915,661 (2003: net loss #414,051), reflecting investment in new
US operations
* Successful institutional Placing to raise #1.9 million completed January
2004
* Acquisition of Clinomics Biosciences Inc., a US company with a major
collection of highly characterised human tissue samples, in January 2004
* Clinomics' new Oncology Cell Signalling Database licensed to AstraZeneca
in March 2004
* Significant expansion in the number of ion channel cell lines from 2 to 17
* Collaboration with Moffit Cancer Center, Florida, in July 2004
Highlights post the year end:
* Molecular Probes distribution contract reinstated
* Clinomics' integration with Cytomyx Ltd and equity fund raising facility
approved in December 2004
* $2.5 million convertible loan facility arranged through Laurus Master Fund
in December 2004
Commenting on the results, Mike Kerins, Cytomyx' Chief Executive, said: "We are
delighted with the progress made during the year, reflected in the fact that we
now work regularly for eight out of the top ten pharmaceutical companies
worldwide. The developments post the year end, including additional flexibility
in financing the company, together with current trading give us confidence in
the year ahead."
For further information, please contact:
Cytomyx Holdings plc 01223 508191
Mike Kerins, Chief Executive
Buchanan Communications 020 7466 5000
Mark Court/Mary-Jane Johnson
The Wall Street Group +1 212 888 4848
Ron Stabiner
CYTOMYX HOLDINGS PLC
Preliminary Statement for the year ended 30 September 2004
CHAIRMAN'S STATEMENT
Cytomyx has had an exciting year of growth and consolidation. This has included
not only a strengthening of gross profit margins through new high value
contracts in the second half of the financial year, but also the acquisition in
January 2004 of US-based Clinomics Biosciences Inc ("Clinomics"), a company
whose unique capabilities give us the potential for substantial growth in future
years.
As a result of this acquisition, we have been pleased to welcome Stephen Turner,
the Founder and CEO of Clinomics, to our Board. Mr Turner has a distinguished
track record in the life science industry and will be a major contributor to the
future direction of the group.
The acquisition of Clinomics will facilitate a number of plans that we have to
strengthen our offering of drug discovery technology solutions on a global
basis.
During the year, Cytomyx Ltd has greatly accelerated its progress in the
development of high value products used in drug discovery. A major effort to
develop recombinant cell lines that express ion channel proteins has been highly
successful and we are now recognised as the world's leading developer of these
systems. These high value products are used to develop new treatments in areas
such as pain, epilepsy and heart disease, as well as being widely used to test
new drugs for their potential to cause serious cardiac toxicity side effects.
These products have shown considerable promise for future revenues.
Clinomics has established a very large collection of human tissue samples,
spanning most of the major diseases currently being investigated by the
pharmaceutical industry. All of the samples in the collection are linked to
detailed clinical information from the donor patient and these are used by our
clients to discover new genes involved in disease progression.
Since January, we have relocated Clinomics to a new facility in Albany, New
York, and made rapid strides in expanding its offering of products to the
pharmaceutical industry. During the year we were successful in securing a number
of major contracts with leading pharmaceutical companies, including AstraZeneca.
In addition, we entered into a major new initiative to develop new Cancer Tissue
MicroArrays (our core technology) with the prestigious Moffitt Cancer Centre in
Florida.
We believe that there are many significant synergies between the Clinomics and
Cytomyx Ltd businesses and, in order to best exploit these, it is our intention
to merge the two companies into a single global business unit early in 2005.
While the integration of Clinomics is not yet complete, early indications are
that this will be a powerful and accretive acquisition of the Cytomyx group.
Cambridge BioScience Ltd continued to perform well, and, after extensive
negotiation, we were delighted to announce re-attaining the distribution
contract for Molecular Probes following its sale to Invitrogen Corporation.
Cambridge BioScience Ltd during the year has also initiated a number of exciting
new distribution contracts with innovative US suppliers.
Fund raising
Interest in the group's key strategic products and services has been strong
during the year. We also recognise the need to strengthen our position in the
critical US marketplace, which accounts for around 50% of global pharmaceutical
R&D expenditure. The acquisition of Clinomics was our first major step towards
strengthening our activities in the US.
As a result of this acquisition, we have received interest from several US-based
investors and in December we agreed to an offer of a $2.5m convertible loan
facility from Laurus Funds that will expand available working capital necessary
for our increased level of activity in the US. We anticipate continued growth
through the group in light of our new US activities.
Financial
The group grew its revenues by more than 11% to #5,664,252 in 2004 from
#5,101,315 in 2003. This growth came from new and acquired activities, some of
the growth being temporarily masked by the temporary loss of the Molecular
Probes contract and the decision to wind down some low margin activities such as
DNA sequencing services. Gross profit has grown to #3,383,859 from #2,560,138 in
2003. Notwithstanding the net loss in the first half which, to a large extent,
reflected costs related to the investment in and relocation of Clinomics, our
second half provided firm evidence of increasing gross profit margins including
the positive impact of the Clinomics' acquisition.
Dividend
In light of the loss for the year, the early stage nature of the company and the
ongoing need for investment to grow the Cytomyx Group, the Board does not
recommend the payment of a dividend for the year.
Summary
The group has continued to focus on developing world class technologies for use
in pharmaceutical R&D and we are now seeing strong demand for these key
products. The strategically important acquisition of Clinomics puts us in a
leading position in a major growth market and provides access to the critical US
market. We have also seen strong interest from the US investment community who
have taken notice of our increasing focus on business opportunities in North
America.
We believe 2005 will be a year of significant consolidation, growth and
development of our increasingly successful pharmaceutical solutions business.
Dr. Bill Mason
Chairman
19 January 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 30 September 2004
Note 2004 2003
# #
TURNOVER
Existing operations 4,993,523 5,101,315
Acquisitions 670,729 -
Turnover - continuing operations 5,664,252 5,101,315
Cost of sales (2,280,393) (2,541,177)
Gross profit 3,383,859 2,560,138
Distribution costs (137,300) (152,937)
Administrative expenses (4,218,815) (2,757,265)
Other operating income - 15,969
OPERATING LOSS
Existing operations (814,880) (334,095)
Acquisitions (157,376) -
Operating loss - continuing operations (972,256) (334,095)
Restructuring costs - (118,086)
LOSS ON ORDINARY ACTIVITIES BEFORE INTEREST (972,256) (452,181)
Interest receivable and similar income 22,124 7,592
Interest payable and similar charges (46,960) (32,328)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (997,092) (476,917)
Tax on loss on ordinary activities 81,431 62,866
LOSS FOR THE FINANCIAL YEAR (915,661) (414,051)
Loss per ordinary share (pence) 2 (2.42) (1.59)
Diluted loss per ordinary share (pence) 2 (2.42) (1.59)
CONSOLIDATED BALANCE SHEET
30 September 2004
Note 2004 2003
# #
FIXED ASSETS
Intangible assets 4,479,363 1,233,895
Tangible assets 1,615,138 1,069,576
6,094,501 2,303,471
CURRENT ASSETS
Stocks 477,815 375,799
Debtors
Due after more than one year 60,600 60,600
Due within one year 964,402 1,184,044
Short term investments 450,000 -
Cash at bank and in hand 387,553 414,529
2,340,370 2,034,972
CREDITORS: amounts falling due
within one year (1,330,278) (869,695)
NET CURRENT ASSETS 1,010,092 1,165,277
TOTAL ASSETS LESS CURRENT LIABILITIES 7,104,593 3,468,748
CREDITORS: amounts falling due
after more than one year (880,194) (1,158,327)
6,224,399 2,310,421
CAPITAL AND RESERVES 3
Called up share capital 1,044,809 701,230
Share premium account 5,107,518 3,478,203
Share capital to be issued 675,817 -
Merger reserve 2,089,460 (99,900)
Foreign exchange reserve (8,432) -
Profit and loss account (2,684,773) (1,769,112)
EQUITY SHAREHOLDERS' FUNDS 6,224,399 2,310,421
COMPANY BALANCE SHEET
30 September 2004
Note 2004 2003
# #
FIXED ASSETS
Tangible assets 2,495 -
Investments 3,394,016 102,000
3,396,511 102,000
CURRENT ASSETS
Debtors
Due after more than one year 4,654,580 3,856,571
Due within one year 22,364 27,287
Short term investments 450,000 -
Cash at bank and in hand 74,967 6,180
5,201,911 3,890,038
CREDITORS: amounts falling due within one year (221,309) (42,500)
NET CURRENT ASSETS 4,980,602 3,847,538
TOTAL ASSETS LESS CURRENT LIABILITIES 8,377,113 3,949,538
CAPITAL AND RESERVES 3
Called up share capital 1,044,809 701,230
Share premium account 5,107,518 3,478,203
Share capital to be issued 675,817 -
Merger reserve 2,189,360 -
Profit and loss account (640,391) (229,895)
EQUITY SHAREHOLDERS' FUNDS 8,377,113 3,949,538
CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 September 2004
Note 2004 2003
# #
Net cash outflow from operating activities 4 (122,629) (920,219)
Returns on investments and servicing of finance 5 (24,836) (24,736)
Taxation 5 58,338 10,880
Capital expenditure and financial investment 5 (617,755) (74,002)
Acquisitions 5 (243,003) (369,982)
Net cash outflow before management of liquid resources and
financing (949,885) (1,378,059)
Management of liquid resources 5 (450,000) -
Financing 5 1,372,909 1,868,502
(Decrease) increase in cash in the year 6 (26,976) 490,443
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2004 2003
# #
(Decrease) increase in cash in the year (26,976) 490,443
Cash outflow from decrease in lease financing 44,142 24,320
Cash outflow from decrease in loan notes 365,464 25,000
Cash inflow from new bank loan - (100,000)
Cash outflow from increase in liquid resources 450,000 -
Change in net debt resulting from cash flows 832,630 439,763
Loans and finance leases acquired with subsidiary (48,789) -
New finance leases (34,129) (46,243)
New loan notes - (1,180,000)
Change in net debt 749,712 (786,480)
Net debt at beginning of year (911,827) (125,347)
Net debt at end of year (162,115) (911,827)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 30 September 2004
2004 2003
# #
Loss for the financial year (915,661) (414,051)
Currency translation difference on foreign currency net
investments (8,432) -
Total gains and losses since last annual report (924,093) (414,051)
NOTES
The information set out above does not constitute the Company's statutory
accounts for the years ended 30 September 2004 or 2003, but is derived from
those accounts, and is prepared on the basis of the accounting policies as
set out in the most recently published set of annual financial statements.
Statutory accounts for 2003 have been delivered to the Registrar of Companies,
and those for 2004 will be delivered following the Company's Annual General
Meeting. The auditors have reported on those accounts; their report was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985.
LOSS PER ORDINARY SHARE
The diluted loss per share takes into account the dilutive effect of share
options. Ordinary shares which are potentially issuable are only included in the
calculation of diluted earnings per share if their issue would decrease net
profit per share or increase net loss per share. The exercise of share options
does not increase the basic loss per share and therefore the basic and diluted
loss per share remain the same.
The calculation of basic loss per ordinary share is based on a loss of #915,661
(2003 - #414,051) and on 37,878,653 (2003 - 26,103,565) ordinary shares being
the weighted average number of ordinary shares in issue during the year.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS AND STATEMENT OF MOVEMENTS ON RESERVES
Called up Share Share Foreign Profit and
share premium capital to Merger exchange loss
capital account be issued reserve reserve account Total
# # # # # # #
Group
Balance at 1 October 2003 701,230 3,478,203 - (99,900) - (1,769,112) 2,310,421
Loss for the year - - - - - (915,661) (915,661)
Shares issued 343,579 1,761,800 - 2,189,360 - - 4,294,739
Shares to be issued - - 675,817 - - - 675,817
Currency translation
differences on foreign
currency net investments - - - - (8,432) - (8,432)
Costs set against share
premium - (132,485) - - - - (132,485)
Balance at 30 September
2002 1,044,809 5,107,518 675,817 2,089,460 (8,432) (2,684,773) 6,224,399
Company
Balance at 1 October 2003 701,230 3,478,203 - - - (229,895) 3,949,538
Loss for the year - - - - - (410,496) (410,496)
Shares issued 343,579 1,761,800 - 2,189,360 - - 4,294,739
Shares to be issued - - 675,817 - - - 675,817
Costs set against share
premium - (132,485) - - - - (132,485)
Balance at 30 September
2002 1,044,809 5,107,518 675,817 2,189,360 - (640,391) 8,377,113
Share capital to be issued represents Deferred Contingent Consideration in
relation to the acquisition of Clinomics Biosciences Inc.
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
2004 2003
# #
Operating loss (972,256) (334,095)
Depreciation charge 260,389 196,350
Loss on disposal of fixed assets 1,150 -
Amortisation of goodwill and intangibles 204,953 63,016
Exceptional restructuring costs - (118,086)
Decrease (increase) in debtors 333,737 (658,770)
Increase in stocks (102,016) (160,803)
Increase in creditors 151,414 92,169
Net cash outflow from operating activities (122,629) (920,219)
ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT
2004 2003
# #
Returns on investments and servicing of finance
Interest received 22,124 7,592
Interest paid (7,227) (32,328)
Interest element of finance lease rental payments (39,733) -
Net cash outflow from returns on investments and servicing of finance (24,836) (24,736)
Taxation
Research and development tax credit 58,338 10,880
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (512,972) (57,073)
Receipts from the sale of fixed assets 6,611 -
Payments to acquire intangible fixed assets (111,394) (16,929)
Net cash outflow from capital expenditure and financial investment (617,755) (74,002)
Acquisitions
Purchase of trade and assets of Cambridge BioScience Limited - (319,982)
Purchase of trade and assets of Cytocell Limited - (50,000)
Purchase of Clinomics Biosciences Inc (236,460) -
Overdraft acquired with subsidiary (6,543) -
(243,003) (369,982)
Management of liquid resources
Increase in short-term investments (450,000) -
Financing
Proceeds from issue of ordinary share capital 1,915,000 2,269,000
Cost of issuing ordinary share capital (132,485) (451,178)
Capital element of finance lease rental repayments (44,142) (24,320)
Repayment of loan notes (365,464) (25,000)
New bank loan - 100,000
Net cash inflow from financing 1,372,909 1,868,502
ANALYSIS OF CHANGES IN NET DEBT
Acquisition
At 1 excluding Other At 30
October Cash cash and non-cash September
2003 flows overdraft changes 2004
# # # # #
Cash at bank and in hand 414,529 (26,976) - - 387,553
Debt due after one year (1,145,000) 224,103 (17,428) 83,025 (855,300)
Debt due within one year (110,000) 141,361 (31,361) (83,025) (83,025)
Finance leases (71,356) 44,142 - (34,129) (61,343)
(1,326,356) 409,606 (48,789) (34,129) (999,668)
Short term investment - 450,000 - - 450,000
Net debt (911,827) 832,630 (48,789) (34,129) (162,115)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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