TIDMMDY
RNS Number : 4775C
MDY Healthcare PLC
08 March 2011
MDY Healthcare plc
Preliminary results
8 March 2011: MDY Healthcare plc ("MDY Healthcare" or the
"Company"), the strategic investor in healthcare companies, today
announces its preliminary results for the reporting period ended 30
September 2010.
Financial Highlights
-- Total investments valued at GBP7.31 million (30 September
2009: GBP9.43 million) with cash and cash equivalents of GBP0.28
million (30 September 2009: GBP1.13 million).
-- Consolidated net asset value per share as at 30 September
2010 of 35p (30 September 2009: 58p).
-- Net loss after tax for reporting period GBP3.63million (2009:
GBP1.73 million).
-- Valuation of strategic private investments, Medivance and
Stanmore, maintained at cost, representing the fair value of the
relevant investment, although both have performed well.
-- After end of reporting period, cash position strengthened by
issuing new shares in placing to a major shareholder and by selling
part of the Company's shareholding in Stanmore, raising GBP150,000
and GBP600,000 respectively.
Portfolio Highlights
-- Following strategic review, primary focus to be on
investments in Medivance and Stanmore.
-- Medivance continues to make excellent progress, achieving
quarter on quarter revenue growth and is well placed to deliver
value for shareholders.
-- Medivance had worldwide consolidated revenues of US$29
million (unaudited) in the year ended 31 December 2010.
-- Stanmore achieved revenues of approximately GBP6.1 million
(unaudited) for 12 months ended 31 December 2010 (2009: GBP5.6
million (audited)). Key Transfemoral ITAP trial continues at the
Royal National Orthopaedic Hospital in Stanmore.
-- Review of investments in AOI and Trust William leading to
prudent write-down of valuations and commencement of strategic
review for Trust William.
Grahame Cook, Chairman, said:
"During the year we restructured the business and made progress
in reducing our overheads and extending our cash runway. We
divested our portfolio of quoted stocks and tightened our focus on
our main strategic private investments, Medivance and Stanmore,
both of which have continued to make excellent progress in their
respective markets."
For further information, please contact:
MDY Healthcare plc
Grahame Cook, Chairman +44 (0) 207 647 1800
grahame.cook@MDYhealthcare.com
Financial Dynamics
Ben Atwell, Susan Quigley +44 (0) 207 831 3113
ben.atwell@fd.com, susan.quigley@fd.com
Brewin Dolphin Limited (Nomad)
Matt Davis +44 (0) 845 270 8600
Notes for editors:
About MDY Healthcare
MDY Healthcare plc is a sector specialised strategic investing
company quoted on AIM (ticker symbol: MDY). The Company seeks to
achieve superior returns for shareholders by investing globally in
companies across the healthcare sector. The directors and executive
have significant operational and investment experience in the
sector and therefore the ability to identify and review a wide
range of potential investments.
Further information can be found on the website
www.mdyhealthcare.com.
MDY Healthcare plc
Chairman's review
Overview
During the last year the Company has faced a number of
challenges, including a poorly performing portfolio of quoted
stocks. To address these challenges we restructured the Company's
Board and carried out a strategic review of the Company's
investments and operations. In May 2010, we announced the
appointment of two high-calibre non-executive directors, Grahame
Cook and Martin Hunt. David Wong, Executive Director, stepped down
from the Board in March 2010, Derek Ablett, Non-executive Director,
retired from the Board in June 2010 and Alan MacKay, former
Non-executive Chairman, stepped down from the Board in September
2010. In August 2010, David Wong also resigned as an executive of
the Company.
The directors have continued to execute the Company's planned
cost reduction program with a view to ensuring the level of fixed
costs is appropriate in the context of the value of the Company's
investments and liquid resources. Total administration expenses
were GBP2.20 million compared to GBP2.09 million for the
corresponding period in 2009; however the total administration
costs of GBP2.20 million for the reporting period included
exceptional costs of GBP0.175 million relating to the termination
of David Wong's employment and consulting arrangements and
approximately GBP0.203 million provision for a VAT liability.
The directors have made a significant reduction in management
costs going forward by reducing the size of the Board and
materially decreasing executive management costs, which will be
reflected in the results for the current reporting period. The
directors remain committed to reducing overheads further and are
actively exploring further ways to offset head office costs in the
year ahead, including seeking to vacate, on satisfactory financial
terms, the current head office of the Company.
During the reporting period, losses increased to GBP3.63 million
from GBP1.73 million in the prior reporting period, due to the
mark-to-market revaluation of our listed and quoted investments and
the gains and losses on disposals of investments throughout the
reporting period, including the write off of the Company's
investment in AOI Medical, further details of which are provided
below.
The Company's portfolio of investments in publicly traded
healthcare companies was valued at approximately GBP0.23 million as
at 30 September 2010. Following the conclusion of the strategic
review of the Company's investment portfolio and operations in Q4
2010, the Board determined that the Company should divest its
listed healthcare stocks to fund the Company's ongoing operations
and is now focused on developing and supporting its two strategic
private assets, Medivance and Stanmore. The Company divested
virtually all of the publicly traded stocks by the calendar year
end.
Over the last year, Stanmore and Medivance have continued to
make good commercial progress and promising developments in their
respective innovative devices, details of which we include below.
Medivance has in particular demonstrated excellent revenue growth
since our first investment in December 2006.
After the reporting period, the Company raised funds by issuing
new shares in a placing to one of the Company's existing major
shareholders and by divesting part of the Company's shareholding in
Stanmore, raising GBP150,000 and GBP600,000 respectively. In
November 2010, the Company sold 600,000 A Preferred shares in SIW
Holdings Limited ("Stanmore") to Alan MacKay, a former director,
for a total cash consideration of GBP600,000. The Board considered
it necessary to divest part of the Stanmore investment to increase
the Company's liquid resources and the Company was able to divest
these shares at the cost of the original investment.
In December 2010, the Company raised GBP150,000 through a
subscription of 810,810 new ordinary shares by Bronsstadet AB, a
company wholly owned by Mr Peter Gyllenhammar, one of MDY
Healthcare's existing major shareholders. The shares issued in the
placing represented 4.75% of the Company's enlarged issued ordinary
share capital and were allotted to Bronsstadet for cash at a price
of 18.5 pence per share, being the mid price of an ordinary share
of the Company at the close of business at the time of the
placing.
Investment strategy and policies
During the reporting period, the Company did not make any new
investments. The Board also took the decision to divest the
portfolio of publicly quoted shares as referred to above. The
Company will now only invest in public UK healthcare stocks in
exceptional circumstances or where publicly traded stocks are
acquired as part of a strategic transaction for the Company. The
Company continues to manage its key private investments with a view
to delivering value to MDY Healthcare shareholders as the
investment portfolio matures. Over the last 12 months we have
progressed our investment strategy by divesting the public
portfolio, rationalizing the strategic portfolio with an enhanced
focus of resources on those assets demonstrating value creating
potential.
Strategic portfolio review
On completion of the strategic review conducted by Grahame Cook
and Martin Hunt, following their appointment to the board of the
Company in May 2010, the board considered it appropriate to write
off the value of AOI Medical (held at GBP582,000 in the accounts
for the reporting period ended 30 September 2009) in the Company's
accounts because of the uncertainty over the future of AOI. As
regards, Trust William Limited, the Company's online retailer of
natural healthcare products, the Company considered that it was
unlikely that the loan to Trust William would be recovered by the
Company, therefore, a provision has been made against the loan,
resulting in a charge on consolidation of GBP0.37 million. The
Company has commenced a review of Trust William and will consider
all strategic options for that business.
Therefore, the Company now has two key strategic investments,
Stanmore and Medivance, both of which are private and are valued at
the cost of the relevant investment, representing the respective
fair values. Despite there being good evidence of positive
progress, we are taking a cautious approach towards any upwards
revaluations of these two investments at this stage due to general
economic conditions.
Medivance, Inc
Medivance, the Colorado-based leader in the emerging field of
therapeutic temperature management, continues to make excellent
progress.
Medivance's patented, FDA-approved Arctic Sun(R) device is now
used in approximately seventeen of the top twenty US hospital heart
programs and fourteen of the top twenty US neurology programs (as
defined by the US News and World 2010 American Best Hospital
Report). In addition, it is also being increasingly adopted by
smaller teaching and community hospitals. International adoption of
Arctic Sun(R) continues in Europe, Asia and Australia. Medivance
has now achieved twenty six quarters of revenue growth in the past
twenty eight quarters and is targeting continued growth in 2011.
Since we first invested in December 2006, Medivance's worldwide
annual revenues have increased approximately sevenfold. Medivance
had worldwide consolidated revenues of US$29 million (unaudited)
for the year ended 31 December 2010.
We have invested approximately $6 million in Medivance through a
series of investments. Our last investment (led by affiliates of
Black Rock, the US investment management company) was in June 2009
when we invested a further $1 million in an $8.9 million Series E
fundraising in newly issued equity in Medivance. We hold around
9.4% of the fully-diluted equity and have decided to maintain the
value in US dollar terms. Given the movement of the US dollar to
sterling exchange rate over the period, this values our holding at
GBP4.1 million as at 30 September 2010.
Stanmore Implants Worldwide Limited ("Stanmore")
Stanmore has performed very well since our investment in March
2008. The directors of Stanmore anticipate revenues of GBP6.1
million (unaudited) for the 12 months to December 2010 and consider
the outlook for sales performance in 2011 to be positive.
MDY Healthcare acquired 3,000,000 A Preferred shares
(approximately 18% of the issued share capital of Stanmore on a
fully diluted basis as at 30 September 2010) in March 2008. As at
30 September 2010, the investment was valued at cost representing
the fair value. Following the disposal of 600,000 A Preferred
Shares in Stanmore referred to above after the reporting period
end, MDY Healthcare holds approximately 14.5% of the issued share
capital of Stanmore.
Growth continues to be driven by an increased take up of the
METS (modular endoprosthetic tumour system) product range and a
growing increase in sales of the non-invasive Juvenile Tumour
Systems. Stanmore has seen an increase in demand from the UK along
with continued good growth in exports, particularly to France,
Greece, Hong Kong, India and Australia, with sales now in 15
countries. Stanmore is currently awaiting the FDA marketing
approval of the Juvenile Tumour system and this is predicted to be
a significant sales channel with a growing level of interest from
surgeons in the USA.
Stanmore made a significant acquisition in the year by
purchasing the assets of the Acrobot Company Ltd and this has
provided the expertise and ability to blend traditional skills of
Stanmore in patient specific solutions with computer aided
navigation. This development project is targeted to be completed
over the next 18 months and will see both knee and hip solutions
developed.
Stanmore continues to expand its skilled workforce, re-branding
its marketing activities and developing a new global electronic
communication system to support the work of surgeons. This
innovative "online design" system allows UK based implant designers
and overseas surgeons to communicate both verbally and visually and
it continues to be a major source of competitive advantage that
will help to drive further export sales.
Stanmore continues to make encouraging progress with ITAP, its
innovative device for directly attaching prosthetic devices to the
skeleton of amputees. The ITAP implant is being developed for a
wide-range of applications including upper and lower limb, digits
and craniofacial prostheses. The Transfemoral ITAP trial continues
at the Royal National Orthopaedic Hospital in Stanmore. ITAP has
attracted significant interest from several institutions both in
the UK and overseas in relation to exploiting the commercial
possibilities for this technology.
Financial review
At 30 September 2010 per the audited financial results for the
reporting period, MDY Healthcare's total investments (current and
non-current) were valued at GBP7.31 million (30 September 2009:
GBP9.43 million). Cash and cash equivalents reduced to GBP0.28
million (30 September 2009: GBP1.13 million) due to ongoing
operating expenses. Net asset value per share as at 30 September
2010 was GBP0.35 (30 September 2009: GBP0.58).
Revenue for the period was GBP136,000 (2009: GBP136,000). In the
twelve months ended 30 September 2010, our loss from operations was
GBP3.53 million (2009: GBP1.83 million). Total reported
administration expenses were GBP2.20 million (2009: GBP2.09
million), which included exceptional costs of GBP0.175 million
relating to the payment for loss of office and GBP0.203 million
provision for a VAT liability.
The net loss on financial assets is GBP1.37 million (2009:
GBP0.23 million gain) which reflects the mark-to-market revaluation
of our listed and quoted investments, the gains and losses on
disposals of investments throughout the reporting period and a
provision against AOI.
Overall the net loss for the reporting period increased to
GBP3.63 million (2009: GBP1.73 million). Losses per share for the
reporting period were 22.31p against 11.15p for the corresponding
period in 2009.
As referred to above, after the reporting period, the Company
has sold further listed and unlisted investments and raised
additional equity, resulting in cash receipts to the Company of
GBP750,000. The Company will consider further strategic options
during the current year to increase the Company's liquid resources
to support the Company's operations until the optimum time to
realize the Company's key strategic investments. The Company will
consider a number of options in the next twelve months to ensure
that the Company has sufficient liquid resources, including
continuing to reduce costs where possible and seeking to make
partial divestments of assets, if necessary.
To reflect Mr Cook's and Mr Hunt's increased responsibilities,
including completion of the strategic review of the Company, on 30
September 2010, the board awarded up to 600,000 options to each of
Mr Cook and Mr Hunt. The options over ordinary shares of 1 pence
each are exercisable on achieving targeted realisations of the
Company's underlying investments and at a price of 20.5 pence per
share (the average mid-market price of a share of the Company for
the 30 trading days preceding the date of grant).
As part of the consideration for the acquisition of healthcare
investments in 2009, MDY Healthcare issued to 3i Group plc, a
related party, GBP1,587,842 fixed rate unsecured loan notes (the
"Loan Notes"). The Loan Notes were originally redeemable as to 50%
on 31 December 2011 however, 3i have agreed to defer repayment of
this amount to 31 March 2012. The remaining 50% of the loan notes
is to be redeemed on 31 December 2012. The Company may, at its
election, redeem the Loan Notes (in whole or in part) at any time
on notice. Until the Loan Notes are redeemed or cancelled in
accordance with their terms and conditions, interest will accrue on
the principal amount of Loan Notes at the rate of 8% per annum and
will be payable quarterly in arrears.
Conclusion and outlook
The last twelve months have been very challenging for MDY
Healthcare. However, the Company has strengthened cash resources
after the end of the reporting period and the Directors were
pleased that a placing of new shares was supported by one of the
Company's existing major shareholders. The financial statements
have been prepared on the going concern basis which the Directors
believe to be appropriate for the reasons set out below in the
Statement of Accounting Policies 1 (a) - Basis of Preparation.
The Company has completed a strategic review of its investments
and operations and reduced operational costs. We have advanced our
investment strategy by divesting the public portfolio and
rationalizing the strategic portfolio with an enhanced focus of
resources on the strategic private investments, Medivance and
Stanmore.
MDY Healthcare plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the reporting period ended 30 September 2010
Restated
Audited Audited
2010 2009
Notes GBP'000 GBP'000
Group revenue 1 136 136
Cost of sales (100) (104)
-------------------------------------------- ------ --------- ---------
Gross profit 36 32
Administrative expenses (2,196) (2,091)
Other operating income 70 1,578
Other operating expenses (1,439) (1,345)
Results from operating activities (3,529) (1,826)
Finance expense (206) (105)
Finance income 105 202
Net finance (expense)/income (101) 97
Loss before tax (3,630) (1,729)
Income tax - -
-------------------------------------------- ------ --------- ---------
Loss for the reporting period (3,630) (1,729)
-------------------------------------------- ------ --------- ---------
Other comprehensive income for the period,
net of income tax - -
-------------------------------------------- ------ --------- ---------
Total comprehensive income for the period (3,630) (1,729)
-------------------------------------------- ------ --------- ---------
Loss and total comprehensive income
attributable to
- Equity holders of the parent (3,630) (1,729)
-------------------------------------------- ------ --------- ---------
Loss for the reporting period (3,630) (1,729)
Basic and diluted loss per share 3 (22.31)p (11.15)p
STATEMENT OF CHANGES IN EQUITY
For the reporting period ended 30 September 2010
Issued Share Profit
share premium and loss Other
capital account account reserves Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- --------- --------- ---------- ---------- ---------
Balance at 1 October
2008 6,999 101,419 (120,137) 22,993 11,274
--------------------- --------- --------- ---------- ---------- ---------
Total comprehensive
income for the
period
--------------------- --------- --------- ---------- ---------- ---------
Loss for the year - - (1,729) - (1,729)
--------------------- --------- --------- ---------- ---------- ---------
Other comprehensive
income
--------------------- --------- --------- ---------- ---------- ---------
Net change in fair
value of available
for sale financial
assets - - (560) - (560)
--------------------- --------- --------- ---------- ---------- ---------
Transactions with
owners recorded
directly in equity
--------------------- --------- --------- ---------- ---------- ---------
Issue of ordinary
shares 16 396 - - 412
--------------------- --------- --------- ---------- ---------- ---------
Balance at 30
September 2009 7,015 101,815 (122,426) 22,993 9,397
--------------------- --------- --------- ---------- ---------- ---------
Total comprehensive
income for period
--------------------- --------- --------- ---------- ---------- ---------
Loss for the year - - (3,630) - (3,630)
--------------------- --------- --------- ---------- ---------- ---------
Balance at 30
September 2010 7,015 101,815 (126,056) 22,993 5,767
--------------------- --------- --------- ---------- ---------- ---------
MDY Healthcare plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the reporting period ended 30 September 2010
Audited Audited
2010 2009
Notes GBP'000 GBP'000
------------------------------- ------ ---------- ----------
Assets
Non-current assets
Intangible assets 58 89
Property, plant and equipment 50 71
Investments 4 7,078 7,831
------------------------------- ------ ---------- ----------
Total non-current assets 7,186 7,991
------------------------------- ------ ---------- ----------
Current assets
Investments 4 231 1,602
Inventory - goods for resale 15 12
Trade and other receivables 190 466
Cash and cash equivalents 284 1,131
------------------------------- ------ ---------- ----------
Total current assets 720 3,211
------------------------------- ------ ---------- ----------
Total assets 7,906 11,202
------------------------------- ------ ---------- ----------
Liabilities
Non-current liabilities
Loan notes 7 1,588 1,588
------------------------------- ------ ---------- ----------
Total non-current liabilities 1,588 1,588
------------------------------- ------ ---------- ----------
Current liabilities
Trade and other payables 551 217
Total current liabilities 551 217
Total liabilities 2,139 1,805
Net assets 5,767 9,397
Equity
Issued capital 7,015 7,015
Share premium 101,815 101,815
Other reserves 22,993 22,993
Retained earnings (126,056) (122,426)
------------------------------- ------ ---------- ----------
Total equity 5,767 9,397
------------------------------- ------ ---------- ----------
MDY Healthcare plc
CONSOLIDATED STATEMENT OF CASHFLOWS
For the reporting period ended 30 September 2010
Audited Audited
----------------------------------------------- ------ --------- ---------
2010 2009
Notes GBP'000 GBP'000
----------------------------------------------- ------ --------- ---------
Cash flows from operating activities
Loss for the reporting period (3,630) (1,729)
Adjustments for:
Depreciation and amortisation 68 66
Net change in fair value of financial
assets at fair value through the statement
of comprehensive income 1,369 (232)
Foreign exchange gain on cash held - (131)
Interest receivable (105) (71)
Operating loss before changes in working
capital and provisions (2,298) (1,756)
Increase in inventory (3) (5)
Decrease/(increase) in trade and other
receivables 276 (130)
Increase/(decrease) in trade and other
payables 334 (202)
----------------------------------------------- ------ --------- ---------
Cash generated (used) by operations 607 (337)
Net cash outflow from operating activities (1,691) (2,434)
Cash flow from investing activities
Interest received 105 71
Acquisition of other investments - (3,807)
Acquisition of intangible assets (15) (41)
Acquisition of property, plant and equipment (1) (2)
Proceeds from sale of investments 755 3,205
Net cash inflow (outflow) from investing
activities 844 (574)
----------------------------------------------- ------ --------- ---------
Cash flow from financing activities
Proceeds from issue of share capital - 412
Proceeds from issue of loan note - 1,588
Net cash inflow from financing activities - 2,000
----------------------------------------------- ------ --------- ---------
Net decrease in cash and cash equivalents 5 (847) (1,008)
Cash and cash equivalents at 1 October 1,131 2,008
Effect of exchange rate fluctuations
on cash held - 131
----------------------------------------------- ------ --------- ---------
Cash and cash equivalents at end of reporting
period 284 1,131
----------------------------------------------- ------ --------- ---------
MDY Healthcare plc
Notes to the preliminary results for the reporting period ended
30 September 2010
1. Accounting policies
Reporting Entity
MDY Healthcare plc (the 'Company') is a Public Limited Company
(traded on AIM) incorporated in and domiciled in the United
Kingdom. The address of the Company's registered office is 23
Bridge Street, Ellon, Aberdeenshire, Scotland. The consolidated
financial statements of the Company as at and for the reporting
period ended 30 September 2010 comprise the Company and its
subsidiaries (together referred to as the "Group and the Group's
interest in jointly controlled entities"). The Group is a
healthcare sector specialised investment company.
Basis of preparation
a) Statement of compliance
In the Consolidated Statement of Comprehensive Income, the 2009
comparative has been restated to comply with the proportionate
consolidation requirements of IAS 31.
The preliminary announcement has been prepared using accounting
policies consistent with those set out in the MDY Healthcare plc
Annual Report for the reporting period ended 30 September 2010.
The financial statements have been prepared on a going concern
basis which the directors believe to be appropriate for the reasons
below.
After the end of the reporting period the Company sold further
listed and unlisted investments and has also raised additional
equity. This has resulted in cash receipts of GBP750,000. The
Company has also agreed a deferment in connection with the
repayment of 50 per cent of the loan notes from 31 December 2011 to
31 March 2012.
The reporting period ended 30 September 2010 has benefitted from
cost saving measures that have been implemented by the Company and
the effect of these will continue in future periods. The Company is
also managing the Trust William investment so as to minimise the
amount of funding required to be provided by the Company under the
joint venture agreement.
The directors have prepared a forecast for the period ending 28
February 2012 which reflects the above matters and shows that the
Group and the Company will be able to meet their liabilities as
they fall due. The forecast assumes that further sales of
investments will be made during the coming year or finance obtained
secured thereon.
Whilst there can be no certainty, the directors are confident
that the actions detailed above are achievable and that the
forecast can be met. In the event of unexpected cash requirements
arising and as regards the repayment of loan notes in March 2012
the directors intend to divest further parts of (or arrange finance
secured on) one of the Company's strategic investments.
In preparing these financial statements, the Directors have
given consideration to the above matters and on this basis they
believe that it remains appropriate to prepare the financial
statements on a going concern basis. They believe that there are
nevertheless uncertainties over these matters that may cast doubt
over the ability of the Company to continue as a going concern and,
therefore to continue realising its assets and discharging its
liabilities in the normal course of business. The financial
statements do not include any adjustments that would result from
this going concern basis of preparation being inappropriate.
The financial statements were approved by the Board of Directors
on 7 March 2011.
b) Basis of Measurement
The financial statements have been prepared on the historical
cost basis except for the following:
-- Financial investments at fair value through the statement of
comprehensive income are measured at fair value
-- Available for sale financial assets are measured at fair
value
c) Functional and presentation currency
The financial statements are presented in pounds sterling,
rounded to the nearest thousand, which is the Company's functional
currency. Functional currencies within the Group consist primarily
of pounds sterling.
d) Use of estimates and judgements
The preparation of financial statements in conformity with IFRSs
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
2. Segmental reporting
Segmental reporting is presented in respect of the Group's
business segments. The business segments are based on the Group's
management and internal reporting structure. Segment results,
assets and liabilities include items directly attributable to a
segment as well as those that can be allocated to a segment on a
reasonable basis.
Business segments
The Group comprises the following main business segments:
Investing - representing the Group's activities investing in
healthcare related companies.
Retail - representing the Group's interests in Trust William
Limited, the multi-channel retail jointly controlled entity, which
sells natural healthcare products direct to consumers via the
internet, mail order and telesales.
Investing Retail Total
---------------- ------------------- ------------------ -------------------
2010 2009 2010 2009 2010 2009
---------------- -------- --------- ------- --------- -------- ---------
Restated Restated Restated
---------------- -------- --------- ------- --------- -------- ---------
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------- -------- --------- ------- --------- -------- ---------
Group revenue 20 6 116 130 136 136
---------------- -------- --------- ------- --------- -------- ---------
Gross profit 20 6 16 26 36 32
---------------- -------- --------- ------- --------- -------- ---------
Result from
operating
activities (3,172) (1,236) (357) (590) (3,529) (1826)
---------------- -------- --------- ------- --------- -------- ---------
Finance
(expense)
income, net (23) 134 (78) (37) (101) 97
---------------- -------- --------- ------- --------- -------- ---------
Loss before and
after tax (3,195) (1,102) (435) (627) (3,630) (1,729)
---------------- -------- --------- ------- --------- -------- ---------
Segment assets 7,773 10,995 133 207 7,906 11,202
---------------- -------- --------- ------- --------- -------- ---------
Segment
liabilities (2,129) (1,771) (10) (34) (2,139) (1,805)
---------------- -------- --------- ------- --------- -------- ---------
Capital
expenditure - 2 16 41 16 43
---------------- -------- --------- ------- --------- -------- ---------
Depreciation
and
amortisation 19 19 49 47 68 66
---------------- -------- --------- ------- --------- -------- ---------
3 Loss per share
2010 2009
---------------------------------------------------- ----------- -----------
Basic and diluted
Net loss for the financial period (GBP'000) (3,630) (1,729)
Weighted average number of ordinary shares
outstanding 16,271,676 15,503,851
Basic and diluted loss per ordinary share (22.31)p (11.15)p
The basic net loss per ordinary share is calculated using a
numerator of the net loss for the reporting period and a
denominator of the weighted average number of ordinary shares in
issue for the reporting period. The diluted net loss per ordinary
share is calculated using a numerator of the net loss for the
reporting period and a denominator of the weighted average number
of ordinary shares and adjusting for the effect of all potentially
dilutive shares, including share options and warrants, assuming
they are converted. There is no difference for 2010 and 2009
between the basic net loss per share and the diluted net loss per
share as ordinary share equivalents from share options have been
excluded from the computation as their effects are
anti-dilutive.
4 Investments - Group
Group
2010 2009
GBP'000 GBP'000
Non - current
Subsidiary undertakings (i) - -
Jointly controlled entities - -
Available for sale financial assets (ii) - 348
Financial assets held for trading at fair value
through the statement of comprehensive income
(iii) 7,078 7,483
7,078 7,831
--------- ---------
Current
Financial assets designated at fair value through
the statement of comprehensive income (iv) 231 1,602
--------- ---------
7,309 9,433
--------- ---------
(i) Subsidiary undertakings
Group
Cost 2010 2009
GBP'000 GBP'000
At 1 October - -
Assets written down - -
At 30 September - -
--------- ---------
Details of jointly controlled entities are as follows:
Country of
Jointly registration
controlled or Principal Class of
entity incorporation activity shares Held % holding
--------------- --------------- --------------- --------------- ----------
Trust William England & Website ordinary
Ltd Wales distribution shares 80.1%
--------------- --------------- --------------- --------------- ----------
Trust William Limited is considered a Jointly Controlled Entity
because there is a contractual arrangement between the venturers
which establishes joint control over the economic activity of the
entity.
(ii) Available for sale financial assets
Group
2010 2009
Fair Value GBP'000 GBP'000
At 1 October 348 908
Revaluation - decrease - (560)
--------- ---------
Impairment provision (348) -
--------- ---------
At 30 September - 348
--------- ---------
In line with the Group's accounting policy, any revaluation of
available for sale financial assets is recognised in the
consolidated statement of income.
GBP'000
Fair Value as at 7 March 2011 Nil
(iii) Financial assets held for trading at fair value through
the statement of comprehensive income
Group
2010 2009
Fair value GBP'000 GBP'000
At 1 October 2009 7,483 7,112
Additions at cost - 608
Revaluation - increase 55 391
Revaluation - decrease (235) (568)
Disposals (225) (60)
--------- ---------
At 30 September 2010 7,078 7,483
--------- ---------
GBP'000
Fair Value as at 7 March 2011 7,078
(iv) Financial assets designated at fair value through the
statement of comprehensive income
Group
2010 2009
Fair value GBP'000 GBP'000
At 1 October 2009 1,602 1,139
Additions at cost: - 3,199
Revaluation - increase - 332
Revaluation - decrease (168) (600)
Disposals (1,203) (2,468)
--------- ---------
At 30 September 2010 231 1,602
--------- ---------
GBP'000
Fair value as at 7 March 2011 21
5 Analysis of changes in net funds
Group
Cash Exchange
2009 flow rate movements 2010
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- --------- --------- ---------------- ---------
Cash and cash equivalents 1,131 (847) - 284
Total 1,131 (847) - 284
--------------------------- --------- --------- ---------------- ---------
6. Related party transactions
Transactions with key management personnel
During the reporting period ended 30 September 2010, GBP300,000
(reporting period ended 30 September 2009: GBP300,000) was paid to
MCM Limited of which D Wong, (a director who served for part of the
reporting period), is a retained consultant. The contract between
the Company, MCM and its associated companies was terminated during
the reporting period. At 30 September 2010, an accrual of
GBP175,000 has been made for costs relating to this
termination.
After the reporting period (November 2010), the Company sold
600,000 A Preferred shares in SIW Holdings Limited ("Stanmore") to
Alan MacKay, a former director of the Company, for a total cash
consideration of GBP600,000. The sale of shares to Alan MacKay
constituted a transaction with a related party for the purposes of
rule 13 of the AIM Rules for Companies by virtue of the fact that
Alan MacKay is a former director of the Company. Alan MacKay did
not hold shares in Stanmore prior to this transaction.
During the reporting period ended 30 September 2010, the Company
terminated its nominal investment in CERT Limited. The Company had
made an investment for a nominal amount in CERT Limited in 2009.
Medical Consultants and Management Limited (MCM), (a company in
which David Wong, former director, has an interest) is a
shareholder in CERT Limited.
Transactions with Substantial Shareholders
After the reporting period, on 21 December 2010, a total of
810,810 new ordinary shares of 1 pence each, representing 4.75% of
the Company's enlarged issued ordinary share capital, were allotted
to Bronsstadet AB for cash at a price of 18.5 pence per share,
being the mid price of an ordinary share of the Company at the
close of business on 14 December 2010. Bronsstadet AB is a company
wholly owned by Mr Peter Gyllenhammar, one of MDY Healthcare's
existing major shareholders.
7 Loan notes
As part of the consideration for the acquisition of healthcare
investments in 2009, MDY Healthcare issued to 3i Group plc, a
related party, GBP1,587,842 fixed rate unsecured loan notes (the
"Loan Notes"). The Loan Notes were originally redeemable as to 50%
on 31 December 2011 however post reporting period end, 3i have
agreed to defer repayment of this amount to 31 March 2012. The
remaining 50% of the loan notes is to be redeemed on 31 December
2012. The Company may, at its election, redeem the Loan Notes (in
whole or in part) at any time on notice. Until the Loan Notes are
redeemed or cancelled in accordance with their terms and
conditions, interest will accrue on the principal amount of Loan
Notes at the rate of 8% per annum and will be payable quarterly in
arrears.
8 The preliminary financial statements for the reporting period
ended 30 September 2010 have been prepared by the Company and were
approved by the Directors on 7 March 2011. These financial
statements do not constitute the full accounts.
9 Copies of this announcement are available to members of the
public from the Company's head office, 11 Stanhope Gate, London W1K
1AN. A copy will also be posted on the Company's website:
www.mdyhealthcare.com.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FMGGFVNLGMZM
MDY Healthcare (LSE:MDY)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
MDY Healthcare (LSE:MDY)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
