TIDMRVG
RNS Number : 9296O
Retroscreen Virology Group PLC
26 September 2013
For immediate release 07.00: 26 September 2013
RETROSCREEN VIROLOGY GROUP PLC
("Retroscreen" or the "Company" or the "Group")
HALF-YEAR FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2013
Retroscreen Virology Group plc (AIM: RVG), the viral challenge
and "virometrics" specialist, is pleased to announce its half-year
financial report for the six months ended 30 June 2013.
Financial Highlights
-- Continued growth in revenue to GBP12.01 million (H1'12 -
GBP5.07 million; 2012 - GBP14.40 million);
-- Gross profit was GBP3.40 million and gross margin 28.3%
(H1'12 - GBP1.19 million and 23.5%; 2012 - GBP3.70 million and
25.7%);
-- Administrative expenses as a percentage of revenue was 24.4%
(H1'12 - 26.7%; 2012 - 26.9%);
-- Profit before taxation was GBP0.03 million (H1'12 - loss of
GBP0.26 million; 2012 - loss of GBP0.43 million);
-- Profit for the year was GBP0.57 million (H1'12 - loss of
GBP0.26 million; 2012 - profit of GBP0.53 million);
-- Strong balance sheet with cash and cash equivalents at 30
June 2013 of GBP13.19 million (H1'12 - GBP16.93 million; 2012 -
GBP16.34 million) and net assets of GBP16.92 million (H1'12 -
GBP15.53 million; 2012 - 16.34 million);
-- GBP25.5 million fundraising completed just after the
half-year end on 3 July 2013.
Operational Highlights
-- Completed the largest RSV challenge study ever performed with
an investigational drug, which was also Retroscreen's largest VCM
study to-date;
-- Conducted the largest ever investigation into influenza
transmission, in collaboration with the University of Nottingham
and funded by the United States Centers for Disease Control and
Prevention (CDC);
-- Continued focus on building solid foundations for significant
revenue growth and improvement in margins:
- opened a new FluCamp screening centre in Manchester
- in March 2013 moved our support functions to our newly
developed open-plan office facilities on the 3rd floor of the QMB
Innovation Centre in Whitechapel, London
- ongoing investment in infrastructure, IT and equipment
-- Investment in challenge virus inventory:
- Characterised our new HRV-16, which we developed for use in
our upcoming AD-VCM, and we are using in our core VCM for a global
pharmaceutical client in H2'13
- On track with our new flu challenge virus, which we are soon
to characterise and anticipate to be available for commercial use
in Q2 '14
-- Solidifying our plans for an AD-VCM and on track to begin the
AD-VCM validation studies in Q1'14;
-- Made significant strides forward in defining Retroscreen's
plans to leverage the VCM as human models of disease and initiated
the all-important IT infrastructure development;
-- Momentum established in 2013 is set to continue and
Retroscreen remains well placed to meet its growth plans over the
next year.
Kym Denny, Chief Executive Officer, said:
"I am pleased to report Retroscreen's half-year financial
results for the six months ended 30 June 2013, which reflect our
commitment to growing client engagements and VCM adoption, while
realising the operational efficiencies and utilisation, reflected
in our improved margins. In this period we have solidified our
plans to add new Airways Disease challenge models (AD-VCM) and have
defined the VCM as human models of disease, which together with the
pioneering of our virometrics database will create powerful tools
in mapping human response to infection. To support our expansion
plans we successfully raised GBP25.5m (gross) just after the
half-year end on 3 July 2013.
I am delighted that we are on track to meet the objectives we
set out for 2013, including starting our first AD-VCM validation
studies, implementing the IT infrastructure pivotal in building the
virometrics database, and continuing to build solid foundations for
expansion and revenue growth."
For further information please contact:
Retroscreen Virology Group plc +44 207 756 1300
Kym Denny (CEO)
Graham Yeatman (FD)
Numis Securities Limited +44 207 260 1000
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black / Michael Burke (Corporate Broking)
Retroscreen Virology Group plc
Statement from the Chief Executive Officer
Introduction
I am very pleased to present Retroscreen's half-year financial
report for the six months ended 30 June 2013, which highlight our
continuing revenue growth and improving margin as the organisation
begins to reap the benefits of investment in staff and
infrastructure from the past 18 months. We successfully raised an
additional GBP25.5m (gross) on 3 July 2013 from existing and new
shareholders, in order that we continue our trajectory towards
further core business expansion alongside the development of a new
challenge model in Airways Disease, and the pioneering of our
virometrics database; which turns our VCM into a very powerful,
species-specific research and development tool.
Background
Retroscreen is a virology healthcare business that provides
clinical research services, focused on the Viral Challenge Model
("VCM"), and pre-clinical analytical services to global
pharmaceutical companies, biotechnology organisations, academic and
government institutions. Retroscreen has grown and developed the
VCM for evidencing the efficacy of antiviral and viral therapeutics
in Influenza, RSV and HRV (common cold). In addition to our
established viral clinical research service platform, Retroscreen
aims to develop human challenge models for research into Asthma and
Chronic Obstructive Pulmonary Disease (COPD), leading ultimately to
a translational medicine platform that isolates patterns in the
human response to major disease causing viruses and translates
these patterns into revolutionary new treatments and
diagnostics.
Overview
The first half of 2013 saw Retroscreen running VCM engagements
at two different quarantine facilities: at our flagship London unit
and at our new Cambridgeshire facility. During this time, we
initiated trial design and study start-up for a multitude of new
customers, in addition to completing the largest RSV challenge
study ever performed with an investigational drug. Not only was
this the largest RSV challenge study, but it was also Retroscreen's
largest VCM full-stop - eclipsing last year's record holder, and
yet another example of how far Retroscreen is pushing the
boundaries of early phase research. In the first half of 2013 we
also had the honour of conducting the largest and most definitive
investigation into how flu is transmitted, in collaboration with
Nottingham University and via funding from the United States
Centers for Disease Control and Prevention ("CDC"). We also ran our
VCM validation study for our newly manufactured HRV-16 cold virus,
which we developed for use in our upcoming new Airways Disease
Viral Exacerbation challenge model (AD-VCM), and which we are using
in our standard VCM with a global pharmaceutical client in the
second half of this year. We will shortly begin our VCM validation
study for a new flu virus, anticipated to be available for
commercial use in Q2 2014, and over the summer we opened our newest
screening centre in Manchester, joining our existing centres in
London and Cambridgeshire in screening volunteers for our VCM
studies.
Our VCM sales pipeline continues to expand in line with our
expectations surrounding revenue growth, with 31% more leads in our
longer term sales pipeline than this time last year. Currently we
are working on five fully qualified VCM study opportunities with an
estimated value of GBP30 million, while leads under conversion
include two opportunities under Start-up Agreement and three in
final contract negotiation.
In addition to the expansion activities associated with our core
VCM business, the first half of 2013 saw Retroscreen solidifying
our plans to add a new challenge model to its VCM repertoire, and
to unlock the additional value inherent in these VCMs. In order to
validate our thinking in both of these areas, we undertook a
scientific road show in late Q2 2013, presenting our plans to world
leading experts in flu, RSV, common cold and airways diseases, as
well as the global thought leaders in immunology, genomics, and
bioinformatics. The overwhelmingly positive response we received
from these sources - and the healthy progress we had made on our
AD-VCM development plan - gave us the assurance that the timing was
right to raise the additional funds we would need to fully validate
the AD-VCM, and to build our viro-database and initially populate
it with the outputs from our biological samples. As a result, we
commenced a fund raising road show in June 2013, raising GBP25.5m
(gross) via a cash placing from new and existing shareholders and
which completed on 3 July 2013. The support we have received
financially and strategically from our investor base has been
invaluable, and I am immensely grateful to each and every one of
them for enabling us to proceed with our next phase of growth
without losing momentum.
The immediate beneficiary of the fundraise is our first new
challenge model in many, many years: the AD-VCM, which is an
airways disease viral exacerbation challenge model. We are on track
to begin the AD-VCM validation studies in Q1 2014. The key disease
areas for the AD-VCM are Asthma and COPD, two prevalent conditions
with significant unmet medical needs which are very specific to us
as a species. Asthmatics at risk of having asthma attacks when they
have a viral infection will be the first patient population to
enter the AD-VCM, with concept design for infection-induced COPD
attacks commencing by Q3 2014. In consultation with many of our
clients, we see the addition of the AD-VCM to Retroscreen's
capabilities as being pivotal to accessing sizable adjacent markets
and encouraging additional significant growth potential for us as a
company.
We also presented to investors Retroscreen's plans to unlock
additional value from all our VCMs by using them in a novel way, as
human models of disease ("HMD"). By conducting VCMs without
investigational drug, Retroscreen aims to study the mechanics of
viral disease in both healthy subjects and in patients suffering
from respiratory disease in a way that will pioneer a better
understanding of the disease pathways and biomarkers that could
eventually lead to novel treatments and diagnostics. To facilitate
this goal, we will create a multidimensional map within our
viro-database of the human response to infection, allowing us to
identify common correlates of protection across viruses and healthy
and vulnerable patient populations alike. We are currently in the
throes of setting up the IT infrastructure needed for this
proprietary database, and plans are in development for the conduct
of HMDs in RSV, flu, cold and virally exacerbated asthma over the
next 12 to 18 months.
Financial Review
Statement of Comprehensive Income
Revenue for the six months ended 30 June 2013 was GBP12.01
million (H1'12 - GBP5.07 million; 2012 - GBP14.40 million). Revenue
was principally from Retroscreen operating concurrent VCM
engagements in two quarantine units for the first time, together
with the study set-up for new VCM engagements with quarantines
commencing in the next twelve months.
Gross profit was GBP3.40 million and gross margin 28.3% (H1'12 -
GBP1.19 million and 23.5%; 2012 - GBP3.70 million and 25.7%).
Profit before taxation was GBP32,000 (H1'12 - Loss before
taxation of GBP0.26 million; 2012 - Loss before taxation of GBP0.43
million).
Balance Sheet and Cash Flow
As at 30 June 2013 net assets amounted to GBP16.92m (H1'12
GBP15.53 million; 2012 GBP16.34 million), including cash and cash
equivalents of GBP13.19 million (H1'12 - GBP16.93 million; 2012 -
GBP16.34 million). Retroscreen raised GBP25.50 million (before
expenses) by way of a placing on 3 July 2013, immediately after the
period end.
Net cash used in operating activities over the six months was
GBP1.07 million (H1'12 - Net cash generated of GBP1.98 million;
2012 Net cash generated of GBP2.10 million).
Outlook
As Retroscreen settles into its second year as an AIM-listed
organisation, we remain focused on developing our operational
infrastructure to meet market demand and to accommodate exciting
new challenge models for asthma and COPD. At the same time, we have
initiated the all-important IT infrastructure development that will
allow us to leverage the VCM as a human model of disease.
I am confident that the momentum we established in the first
half of 2013 is set to continue, and that Retroscreen remains well
placed to meet its growth plans over the next year.
Kym Denny
Chief Executive Officer
25 September 2013
Retroscreen Virology Group plc
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2013
Note 6 Months 6 Months Year
ended ended ended
30 Jun 30 Jun 31 Dec
13 12 Unaudited 12
Unaudited GBP'000 Audited
GBP'000 GBP'000
Revenue 12,009 5,066 14,395
Cost of sales (8,611) (3,875) (10,694)
--------------- ------------------ -------------
Gross profit 3,398 1,191 3,701
Research and development (496) (87) (307)
Administration expenses (2,928) (1,354) (3,873)
Share-based payment charge (11) (24) (48)
--------------- ------------------ -------------
Loss from operations (37) (274) (527)
Finance income 74 27 111
Finance costs (5) (9) (12)
--------------- ------------------ -------------
Profit/ (loss) before taxation 32 (256) (428)
Taxation 4 540 - 957
--------------- ------------------ -------------
Profit/ (loss) for the period 572 (256) 529
Other comprehensive income, - - -
net of tax
--------------- ------------------ -------------
Total comprehensive loss
for the period/ year attributable
to shareholders 572 (256) 529
=============== ================== =============
Profit/ (loss) per share
- basic (pence) 5 1.4p (0.9)p 1.5p
Profit/ (loss per share -
diluted (pence) 5 1.3p (0.9)p 1.4p
All results derive from continuing operations.
Retroscreen Virology Group plc
Consolidated Statement of Financial Position
As at 30 June 2013
30 Jun 30 Jun 31 Dec
13 12 Unaudited 12
Unaudited GBP'000 Audited
GBP'000 GBP'000
Assets
Property, plant and equipment 3,226 726 1,377
--------------- ------------------ -------------
Non-current assets 3,226 726 1,377
Inventories 3,036 1,808 1,613
Trade and other receivables 4,211 1,244 2,695
R&D tax credit receivable 1,615 500 1,075
Cash and cash equivalents 13,194 16,934 16,338
--------------- ------------------ -------------
Current assets 22,056 20,486 21,721
--------------- ------------------ -------------
Total assets 25,282 21,212 23,098
--------------- ------------------ -------------
Liabilities
Trade and other payables (7,625) (5,685) (6,762)
Current liabilities (7,625) (5,685) (6,762)
--------------- ------------------ -------------
Net current assets 14,431 14,801 14,959
--------------- ------------------ -------------
Financial liabilities (738) - -
--------------- ------------------ -------------
Non-current liabilities (738) - -
--------------- ------------------ -------------
Net assets 16,919 15,527 16,336
=============== ================== =============
Equity
Share capital 2,049 2,049 2,049
Share premium account 13,013 13,013 13,013
Share-based payment reserve 228 193 217
Merger reserve 4,199 4,199 4,199
Retained earnings (2,570) (3,927) (3,142)
--------------- ------------------ -------------
Equity attributable to shareholders 16,919 15,527 16,336
=============== ================== =============
The interim consolidated financial statements of Retroscreen
Virology Group plc (registered company number 08008725) were
approved by the Board of Directors and authorised for issue on 26
September 2013 and signed on its behalf by:
Graham E Yeatman
Finance Director
Retroscreen Virology Group plc
Consolidated Statement of Changes in Equity
As at 30 June 2013
Ordinary Share Share-Based Merger Retained Total
Share Premium Payment Reserve Earnings
Capital Account Reserve
GBP
GBP GBP GBP GBP GBP GBP
At 1 January 2012 1,096 - 5 4,196 (3,671) 1,626
Issued equity share
capital:
Issued in subsidiary
undertakings 6 - - 3 - 9
Placing on admission
to AIM 947 13,177 - - - 14,124
------------- ------------- ---------------- ------------- -------------- -----------
Total transactions
with owners in their
capacity as owners 953 13,177 - 3 - 14,133
Total comprehensive
loss for the period - - - - (256) (256)
Share-based payment
expense - - 24 - - 24
Warrants issued - (164) 164 - - -
------------- ------------- ---------------- ------------- -------------- -----------
Balance at 30 June
2012 2,049 13,013 193 4,199 (3,927) 15,527
Total comprehensive
profit for the period - - - - 785 785
Share-based payment
expense - - 24 - - 24
---------- ------ -------- ---------- ------- -----------
Balance at 31 December
2012 2,049 13,013 217 4,199 (3,142) 16,336
Total comprehensive
profit for the period - - - - 572 572
Share-based payment
expense - - 11 - - 11
---------- ------ -------- ---------- ------- -----------
Balance at 30 June
2013 2,049 13,013 228 4,199 (2,570) 16,919
========== ====== ======== ========== ======= ===========
Retroscreen Virology Group plc
Consolidated Statement of Cash Flows
For the six months ended 30 June 2013
6 Months 6 Months Year
ended ended ended
30 Jun 30 Jun 31 Dec
13 12 Unaudited 12
Unaudited GBP'000 Audited
GBP'000 GBP'000
Cash flow from continuing operating
activities
Profit/ (loss) before taxation 32 (256) (428)
Adjustments for:
Depreciation of plant, property
and equipment 292 80 230
Loss on disposal of plant, property
and - - 2
Share-based compensation 11 24 48
Increase in inventories (1,423) (363) (168)
(Increase)/ decrease in trade
and other receivables (1,516) 1,643 192
Increase in trade and other
payables 1,601 865 1,941
Finance costs 5 9 12
Finance income (74) (27) (111)
--------------- ------------------ -------------
Cash (used in)/ from operations (1,072) 1,975 1,718
Corporation tax refund - - 383
--------------- ------------------ -------------
Net cash (used in)/ generated
by operating activities (1,072) 1,975 2,101
Investing activities
Acquisition of plant, property
and equipment (2,141) (411) (1,214)
Finance income 74 27 111
--------------- ------------------ -------------
Net cash used in investing activities (2,067) (384) (1,103)
Financing activities
Net proceeds from issue of shares - 14,133 14,133
Loans repaid - (374) (374)
Finance costs (5) (9) (12)
--------------- ------------------ -------------
Cash (used in)/ generated from
financing activities (5) 13,750 13,747
Net (decrease)/ increase in cash
and cash equivalents (3,144) 15,341 14,745
Cash and cash equivalents at
beginning of financial period 16,338 1,593 1,593
Cash and cash equivalents at
end of financial period 13,194 16,934 16,338
=============== ================== =============
Retroscreen Virology Group plc
Notes to the accounts
1. Basis of preparation and accounting policies
The interim financial statements have been prepared in
accordance with the AIM rules and the basis of accounting policies
set out in the accounts of the Group for the year ended 31 December
2012 and on the basis of all International Financial Reporting
Standards as endorsed by the EU ("IFRS") that are expected to be
applicable to the Group's statutory accounts for the year ended 31
December 2013. The interim financial statements are unaudited and
were approved by the Board of Directors for issue on 26 September
2013. The information set out herein is abbreviated and does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006. The results for the year ended 31 December
2012 are in abbreviated form and have been extracted from the
published financial statements of the Group. These were audited and
reported upon without qualification by Baker Tilly UK Audit LLP and
did not contain a statement under Section 498(2) or (3) of the
Companies Act 2006.
The Group has not applied IAS 34 "Interim Financial Reporting"
(which is not mandatory for UK Groups) in the preparation of these
interim financial statements.
The Company is a limited liability company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by The London Stock Exchange. The Group
financial statements are presented in pounds Sterling, which is the
Group's presentational currency, and all values are rounded to the
nearest thousand (GBP'000) except where indicated otherwise.
2. Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its subsidiary undertakings. The
results of subsidiaries acquired or disposed of during the year are
included in the consolidated statement of comprehensive income from
the date of their acquisition.
The purchase method of accounting is used for the acquisition of
subsidiaries. The cost of acquisition is measured at the aggregate
fair values of assets given, equity instruments issued and
liabilities incurred or assumed by the Group to obtain control and
any directly attributable acquisition costs.
Intra-group balances, and any unrealised income and expenses
arising from intra-group transactions, are eliminated in preparing
the consolidated financial statements.
Retroscreen Virology Group plc acquired Retroscreen Virology
Limited on 20 April 2012 through a share for share exchange that
does not meet the definition of a business combination. It is noted
that such transactions are outside the scope of IFRS 3 and there is
no other guidance elsewhere in IFRS covering such transactions.
IAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors, requires that where IFRS does not include guidance for a
particular issue, the Directors may also consider the most recent
pronouncements of other standard setting bodies that use a similar
conceptual framework to develop accounting standards when
developing an appropriate accounting policy.
In this regard, it is noted that the UK Accounting Standards
Board has, in issue, an accounting standard covering business
combinations (FRS 6) that permits the use of the merger accounting
principles for such transactions. The Directors have therefore
chosen to adopt these principles and the accounts have been
prepared as if Retroscreen Virology Limited had been owned and
controlled by the Company throughout the 6 months ended 30 June
2012 and the year ended 31 December 2012. Accordingly, the assets
and liabilities of Retroscreen Virology Limited have been
recognised at their historical carrying amounts, the results for
the periods prior to the date the Company legally obtained control
have been recognised and the financial information and cash flows
reflect those of Retroscreen Virology Limited.
3. Segmental information
The Directors consider that there are no identifiable business
segments that are engaged in providing individual products or
services or a group of related products and services that are
subject to risks and returns that are different to the core
business. The information reported to the Group's Chief Executive
Officer, who is considered the chief operating decision maker, for
the purposes of resource allocation and assessment of performance
is based wholly on the overall activities of the Group. The Group
has therefore determined that it has only one reportable segment
under IFRS8, which is 'medical and scientific research services'.
The Group's revenue and results and assets for this one reportable
segment can be determined by reference to the Group's consolidated
statement of comprehensive income and consolidated statement of
financial position.
The Group carries out all its activities from the UK and as such
only has a single geographic segment.
4. Taxation on ordinary activities
6 Months 6 Months Year
ended ended ended
30 Jun 30 Jun 31 Dec
13 12 Unaudited 12
Unaudited GBP'000 Audited
GBP'000 GBP'000
Current tax:
R&D tax credit (250) - (947)
Adjustments in respect
of prior periods (290) - (10)
--------------- ------------------ -------------
(540) - (957)
=============== ================== =============
5. Earnings/ (loss) per share
The calculation of the basic and dilutes EPS/ (LPS) is based on
the following data:
6 Months 6 Months Year
ended ended ended
30 Jun 30 Jun 31 Dec
13 12 Unaudited 12
Unaudited GBP'000 Audited
GBP'000 GBP'000
Earnings:
Earnings/ (loss) for the
purposes of basic and diluted
EPS/ (LPS) being net profit/
(loss) attributable to
owners of the Company 572 (256) 529
=============== ================== ===============
Number of shares:
Weighted average number
of ordinary shares for
the purpose of basic EPS/
(LPS) 40,976,920 28,077,963 34,580,451
Effect of dilutive potential
ordinary shares:
* share options 3,851,268 - 3,582,103
* warrants - - 56,596
--------------- ------------------ ---------------
44,828,188 28,077,963 38,219,150
=============== ================== ===============
In the 6 months ended 30 June 2012, the potential ordinary
shares were not treated as dilutive as the Group was loss making,
therefore the weighted average number of ordinary shares for the
purposes of the basic and dilutive loss per share were the
same.
6. Post balance sheet events
On 3 July 2013, the Company raised GBP25.5 million (before
expenses) by way of a placing of 12,750,000 new ordinary shares
with both new and existing institutional shareholders at a price of
200 pence per ordinary share. Following admission of the new
ordinary shares to trading on AIM, the total number of ordinary
shares in issue became 53,726,920.
7. Interim announcement
The interim report was approved by the Board of Directors for
issue on 26 September 2013. A copy will be posted on the Company's
website at www.Retroscreen.com.
Retroscreen Virology Group plc
Independent review report to Retroscreen Virology Group plc
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-year financial report for the
six months ended 30 June 2013 which comprises Consolidated
Statement of Comprehensive Income, Consolidated Statement of
Financial Position, Consolidated Statement of Changes in Equity,
Consolidated Statement of Cash Flows and the related explanatory
notes. We have read the other information contained in the
half-year financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"'Review of Interim Financial Information performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our review work has been undertaken so that we might state
to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
Directors' Responsibilities
The half-year financial report, is the responsibility of, and
has been approved by the Directors. The Directors are responsible
for preparing and presenting the half-year financial report in
accordance with the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards and International Financial Reporting
Interpretations Committee pronouncements as adopted by the European
Union. The condensed set of financial statements included in this
half-year financial report has been prepared in accordance with the
presentation, recognition and measurement criteria of International
Financial Reporting Standards and International Financial Reporting
Interpretations Committee pronouncements, as adopted by the
European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Basis for Qualified Conclusion
The Group has made an accrual in Administrative Expenses for
2013 employee performance-based bonus, amounting to GBP0.56m in
respect of the six months ended 30 June 2013. We consider that in
accordance with IAS 37 Provisions, Contingent Liabilities and
Contingent Assets there is no constructive obligation arising as at
30 June 2013.
Qualified Conclusion
Based on our review, with the exception of the matter described
in the preceding paragraph, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-year financial report for the six months ended 30 June
2013 is not prepared, in all material respects, in accordance with
the presentation, recognition and measurement criteria of
International Financial Reporting Standards and International
Financial Reporting Interpretations Committee pronouncements as
adopted by the European Union, and the AIM Rules of the London
Stock Exchange.
Baker Tilly UK Audit LLP
Chartered Accountants
3 Hardman Street
Manchester
M3 3HF
25 September 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUQABUPWGMA
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