Summit Therapeutics
plc(‘Summit’, the ‘Company’ or the ‘Group’)
Summit Therapeutics Reports Financial
Results and Operational Progress for the Second Quarter and Six
Months Ended 31 July 2019
- Reported Additional Positive Phase 2 Data Showing
Ridinilazole Improved Quality of Life and Microbiome Preservation
Compared to Standard of Care
- Appointed Key Marketing Hires Focused on Potential US
Commercialisation for Ridinilazole
- Conference Call Today at 1:00pm BST / 8:00am
EDT
Oxford, UK, and Cambridge, MA, US, 11
October 2019 - Summit Therapeutics plc (NASDAQ: SMMT, AIM:
SUMM) today reports its financial results and provides an update on
its operational progress for the second quarter and six months
ended 31 July 2019.
“It has been a quarter of strong progress across
the clinical, scientific and commercial functions as we focus on
our key mission of bringing to market our precision antibiotic,
ridinilazole, as a potential new front-line treatment for patients
with CDI," said Glyn Edwards, Chief Executive Officer of
Summit. “With our landmark designed Phase 3 clinical
trials for ridinilazole continuing on schedule, we have taken steps
to secure a bright future for Summit as a leader in antibiotic
innovation through the appointment of key hires to support the
potential commercialisation of this new class antibiotic. Their
experience in leading successful antibiotic launches, combined with
the compelling clinical and microbiome data generated to date gives
us confidence that, if approved, ridinilazole will be well
positioned to become the treatment of choice for patients with C.
difficile infection."
Ridinilazole for C. difficile Infection
(‘CDI’) Programme
- Ri-CoDIFy Phase 3 landmark clinical trials aim to support
adoption of the precision antibiotic ridinilazole as the new
standard of care treatment for CDI by:
- showing superiority over the current standard of care,
vancomycin, using a composite endpoint measuring sustained clinical
response;
- generating health economic data to help support ridinilazole's
commercial launch, if approved; and
- undertaking deep microbiome analysis that aims to show
ridinilazole’s preservation of the gut microbiome.
- The Phase 3 clinical programme remains on track for expected
reporting of top-line data in the second half of 2021. The trial
initiation phase is progressing well with 17 countries open for
enrolment (including 9 new countries in August and September), more
than half of the 300 planned clinical trial sites opened, and
patient enrolment at 73 and accelerating at the end of September
2019.
- Reported new Phase 2 clinical trial data that showed
ridinilazole improved patients' quality of life compared to
vancomycin, including demonstrating statistically significant early
and longer-term improvements in measurements of physical and mental
health. Additional data highlighted mechanistic insights into how
ridinilazole preserves the healthy function of the gut microbiome
in patients with CDI. These new results were reported at the ID
Week Conference held in Washington DC in early October 2019.
- BARDA increased the total value of its award supporting the
clinical and regulatory development of ridinilazole to up to $63.7
million in June 2019. Under this award, BARDA exercised a $9.6
million option related to patient enrolment and dosing in the Phase
3 clinical trials, bringing the total committed funding to $53.6
million.
- Expanded commercial team to undertake preparatory activities to
support Summit's strategy of commercialising ridinilazole in the
United States, if approved.
- Appointed Ms Anna Diaz Triola as Vice President, Marketing. Ms
Triola has over 20 years industry experience, including working on
the marketing strategy of the blockbuster antibiotic Cubicin® at
Cubist.
- Appointed Mr Kevin McDermott as Vice President, Market Access.
Mr McDermott joins Summit from Insmed, where he led Global Market
Access to Arikayce®, the first antibiotic to receive US FDA
approval through the limited population pathway for antibacterial
and antifungal drugs (‘LPAD’).
Discuva Platform
SMT-571 for Gonorrhoea
- Presented data at ASM Microbe and STI & HIV World Congress
that showed our new class antibiotic SMT-571 had consistently high
potency across over 200 clinically relevant strains of Neisseria
gonorrhoeae, including numerous multi-drug resistant and
extensively-drug resistant strains.
- IND-enabling studies are ongoing, with the
development of SMT-571 being supported by an award of up to $4.5
million from CARB-X.
DDS-04 for Enterobacteriaceae
- DDS-04 compound series is a new class of antibiotics in lead
optimisation that acts via the novel bacterial target LolCDE with
the potential to treat infections caused by the Gram-negative
bacteria, Enterobacteriaceae.
- In vivo proof of concept has been demonstrated with a DDS-04
series compound in pneumonia, sepsis and urinary tract infection
('UTI'). UTI data were presented at ECCMID in April, and data from
all three disease models were presented at the ASM/ESCMID
Conference held in September.
Financial Highlights
- Cash and cash equivalents at 31 July 2019 of £20.9
million compared to £26.9 million at
31 January 2019.
- Loss for the three months ended 31 July 2019 of £5.2
million compared to a profit of £26.6 million for the three months
ended 31 July 2018. The profit recorded in the three
months ended 31 July 2018 was driven by an accelerated release of
deferred revenues related to a former licence agreement.
This announcement contains inside information
for the purposes of Article 7 of EU Regulation 596/2014 (MAR).
Conference Call and Webcast
InformationSummit will host a conference call and webcast
to review the financial results for the second quarter and six
months ended 31 July 2019 today at 1:00pm BST / 8:00am EDT. To
participate in the conference call, please dial +44 (0)844 5718 892
(UK and international participants) or +1 631 510 7495 (US local
number) and use the confirmation code 4281539. Investors may also
access a live audio webcast of the call via the investors section
of the Company's website, www.summitplc.com. A replay of the
webcast will be available shortly after the presentation
finishes.
About Summit TherapeuticsSummit
Therapeutics is a leader in antibiotic innovation. Our new
mechanism antibiotics are designed to become the new standards of
care for the benefit of patients and create value for payors and
healthcare providers. We are currently developing new mechanism
antibiotics to treat infections caused by C. difficile, N.
gonorrhoeae and Enterobacteriaceae and are using our proprietary
Discuva Platform to expand our pipeline. For more information,
visit www.summitplc.com and follow us on Twitter @summitplc.
For more information:
SummitGlyn
Edwards / Richard Pye (UK office)Michelle Avery (US office) |
Tel: +44 (0)1235
443 951 +1 617 225 4455 |
|
|
Cairn Financial Advisers
LLP (Nominated Adviser)Liam Murray / Tony Rawlinson /
Ludovico Lazzaretti |
Tel: +44 (0)20 7213 0880 |
|
|
N+1 Singer
(Joint Broker)Aubrey Powell / Jen Boorer, Corporate FinanceTom
Salvesen, Corporate Broking |
Tel: +44 (0)20 7496 3000 |
|
|
Bryan Garnier & Co
Limited (Joint Broker)Phil Walker / Dominic Wilson |
Tel: +44 (0)20 7332 2500 |
|
|
MSL Group
(US)Erin Anthoine |
Tel: +1 781 684
6652 summit@mslgroup.com |
|
|
Consilium Strategic
Communications (UK) Mary-Jane Elliott / Sue Stuart /
Sukaina Virji / Lindsey Neville |
Tel: +44 (0)20
3709 5700 summit@consilium-comms.com |
Forward Looking StatementsAny
statements in this press release about the Company’s future
expectations, plans and prospects, including but not limited to,
statements about the potential benefits and future operation of the
BARDA or CARB-X contract, including any potential future payments
thereunder, the clinical and preclinical development of the
Company’s product candidates, the therapeutic potential of the
Company’s product candidates, the potential of the Discuva
Platform, the potential commercialisation of the Company’s product
candidates, the sufficiency of the Company’s cash resources, the
timing of initiation, completion and availability of data from
clinical trials, the potential submission of applications for
marketing approvals and other statements containing the words
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project,"
"should," "target," "would," and similar expressions, constitute
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements
as a result of various important factors, including: the ability of
BARDA or CARB-X to terminate our contract for convenience at any
time, the uncertainties inherent in the initiation of future
clinical trials, availability and timing of data from ongoing and
future preclinical studies and clinical trials and the results of
such studies and trials, whether preliminary results from a
clinical trial will be predictive of the final results of that
trial or whether results of early clinical trials or preclinical
studies will be indicative of the results of later clinical trials,
expectations for regulatory approvals, laws and regulations
affecting government contracts, availability of funding sufficient
for the Company’s foreseeable and unforeseeable operating expenses
and capital expenditure requirements and other factors discussed in
the "Risk Factors" section of filings that the Company makes with
the Securities and Exchange Commission, including the Company’s
Annual Report on Form 20-F for the fiscal year ended 31 January
2019. Accordingly, readers should not place undue reliance on
forward-looking statements or information. In addition, any
forward-looking statements included in this press release represent
the Company’s views only as of the date of this release and should
not be relied upon as representing the Company’s views as of any
subsequent date. The Company specifically disclaims any obligation
to update any forward-looking statements included in this press
release.
FINANCIAL REVIEW
Other Operating Income
Other operating income was £4.1 million for the
three months ended 31 July 2019, as compared to £2.7
million for the three months ended 31 July 2018. Other
operating income was £9.0 million for the six months ended
31 July 2019, as compared to £6.2 million for the six
months ended 31 July 2018. These increases resulted
primarily from the recognition of operating income from Summit’s
funding contract with BARDA for the development of ridinilazole,
which was £3.5 million for the three months ended
31 July 2019 as compared to £2.0 million for the three
months ended 31 July 2018 and £8.1 million for the six
months ended 31 July 2019 as compared to £5.3 million for
the six months ended 31 July 2018. To date, an aggregate
of £23.0 million ($30.1 million) of the total committed BARDA
funding of $53.6 million has been recognised.
The Group also recognised operating income
related to the Group's CARB-X award supporting the development of
SMT-571 for the treatment of gonorrhoea of £0.1 million during the
three months ended 31 July 2019 as compared to £0.2
million for the three months ended 31 July 2018 and £0.4
million during the six months ended 31 July 2019 as
compared to £0.3 million for the six months ended
31 July 2018.
Revenue
Revenue was £0.1 million for the three months
ended 31 July 2019 compared to £38.0 million for the
three months ended 31 July 2018. Revenue was £0.4 million
for the six months ended 31 July 2019 compared to £41.8
million for the six months ended 31 July 2018.
Revenue of £0.1 million recognised during the
three months ended 31 July 2019 and £0.2 million
recognised during the six months ended 31 July 2019
related to the receipt of a $2.5 million (£1.9 million) upfront
payment in respect of the licence and commercialisation agreement
signed with Eurofarma Laboratórios SA in December 2017 for the
exclusive right to commercialise ridinilazole in specified Latin
American and Caribbean countries.
The decreases in revenue recognised are
principally due to the reduction in revenue related to the Sarepta
licence and collaboration agreement following the Group’s decision
to discontinue development of ezutromid in June 2018. Revenue
relating to the cost-share arrangement under the Sarepta agreement
recognised during the three months ended 31 July 2019
amounted to £nil and during the six months ended
31 July 2019 amounted to £0.1 million, as compared to
total revenues relating to the upfront payment, development
milestone payment and cost-share arrangement recognised during the
three months ended 31 July 2018 of £37.8 million and
during the six months ended 31 July 2018 of £41.3
million. Effective as of August 2019, the agreement with Sarepta
has been terminated with no material ongoing obligations for either
party.
Operating Expenses
Research and Development Expenses
Research and development expenses decreased by
£0.7 million to £9.2 million for the three months ended
31 July 2019 from £9.9 million for the three months ended
31 July 2018. Research and development expenses decreased
by £3.9 million to £17.5 million for the six months ended
31 July 2019 from £21.4 million for the six months ended
31 July 2018. These decreases reflect decreases in both
Duchenne muscular dystrophy ('DMD') clinical programme costs, as a
result of the discontinuation of the development of ezutromid in
June 2018, and research and development related staffing costs,
offset by increased CDI clinical programme costs.
Expenses related to the CDI programme increased
by £4.1 million to £12.5 million for the six months ended
31 July 2019 from £8.4 million for the six months ended
31 July 2018. This increase primarily related to clinical
operations and supply manufacturing activities related to the
ongoing Ri-CoDIFy Phase 3 clinical trials of ridinilazole that
commenced in February 2019.
Investment in the Group's preclinical antibiotic
pipeline was £1.2 million for the six months ended
31 July 2019 compared to £0.4 million for the six months
ended 31 July 2018. This increase primarily related to
preclinical development activities for SMT-571 for the treatment of
gonorrhoea and the DDS-04 series for the treatment of
Enterobacteriaceae infections.
Expenses related to the DMD programme decreased
to £0.2 million for the six months ended 31 July 2019
from £7.8 million for the six months ended 31 July 2018.
The Group does not expect to incur further significant costs for
this programme.
Other research and development expenses
decreased by £1.2 million to £3.6 million during the six months
ended 31 July 2019 as compared to £4.8 million during the
six months ended 31 July 2018, which was driven by a
decrease in staffing and facilities costs reflecting the
implementation of cost-cutting measures following the decision to
discontinue development of ezutromid in June 2018.
General and Administration Expenses
General and administration expenses decreased by
£1.1 million to £1.2 million for the three months ended
31 July 2019 from £2.3 million for the three months
ended 31 July 2018. General and administration expenses
decreased by £1.8 million to £2.9 million for the six
months ended 31 July 2019 from £4.7 million for the
six months ended 31 July 2018. These decreases were
driven by a reduction in staff and facilities related costs and
legal and professional fees, as well as a net positive movement in
exchange rate variances.
Finance Costs
Finance costs recognised during the three and
six months ended 31 July 2019 relate to lease liability
interest payable and the unwinding of the discount associated with
provisions. Finance costs were £0.1 million for the three
months ended 31 July 2019 compared to £0.2 million
for the three months ended 31 July 2018. Finance costs
were £0.1 million for the six months ended
31 July 2019 compared to £0.4 million for the six
months ended 31 July 2018. This decrease relates to the
cessation of the unwinding of the discount following the
remeasurement of the financial liabilities on funding arrangements
relating to DMD-related US not for profit organisations to £nil in
June 2018.
Taxation
The income tax credit for the three months ended
31 July 2019 was £1.1 million as compared to a net income
tax expense of £0.5 million for the three months ended
31 July 2018. The income tax credit for the six months
ended 31 July 2019 was £1.9 million as compared to
£0.5 million for the six months ended 31 July 2018. These
changes in income tax during the three and six months ended
31 July 2019 as compared to during the three and six
months ended 31 July 2018 were driven by the Group's
de-recognition of its accrued UK research and development tax
credit during the three months ended 31 July 2018, as it
was not certain that the Group would have sufficient losses in the
prior year to remain eligible to receive this research and
development tax credit. The Group's current net tax credit for the
periods reflects the accrued UK research and development tax credit
based on management's estimate of the qualifying expenditure
relating to research and development activities carried out by the
Group, the taxes relating to the US operations and the release of
deferred tax liabilities associated with the amortisation of
intangible assets.
Losses
Loss before income tax was £6.2 million for the
three months ended 31 July 2019 compared to a profit
before income tax of £27.1 million for the three months ended
31 July 2018. Loss before income tax was £11.1 million
for the six months ended 31 July 2019 compared to a
profit before income tax of £20.3 million for the six months ended
31 July 2018.
Net loss for the three months ended
31 July 2019 was £5.2 million with a basic loss per share
of 3 pence compared to a net profit of £26.6 million for the three
months ended 31 July 2018 with a basic earnings per share
of 32 pence. Net loss for the six months ended
31 July 2019 was £9.2 million with a basic loss per share
of 6 pence compared to a net profit of £20.8 million for the six
months ended 31 July 2018 with a basic earnings per share
of 26 pence.
The profits recorded during the three and six
months ended 31 July 2018 were due to the recognition of all
remaining deferred revenue related to the Sarepta agreement
following the Group's decision to discontinue the development of
ezutromid.
Cash Flows
The Group had a net cash outflow of £7.3 million
for the six months ended 31 July 2019 as compared to a
net cash outflow of £3.8 million for the six months ended
31 July 2018.
Operating ActivitiesFor the six months ended
31 July 2019, net cash used in operating activities was
£6.9 million compared to £17.8 million for the six months ended
31 July 2018. This positive movement of £10.9 million was
driven by an increase in cash received from licensing agreements
and funding arrangements of £0.8 million, an increase in taxation
cash inflows of £5.0 million due to the timing of receipt of the
Group's research and development tax credits receivable on
qualifying expenditure in respect of financial years ended 31
January 2017 and 2018, and a decrease in operating costs of £5.1
million as a result of the Group’s decision to discontinue
development of ezutromid.
Investing ActivitiesNet cash used in investing
activities was £0.2 million for the six months ended
31 July 2019 as compared to £0.1 million for the six
months ended 31 July 2018. Net cash used in investing
activities for the six months ended 31 July 2019 includes
amounts paid to acquire property, plant and equipment and
intangible assets, offset by bank interest received on cash
deposits.
Financing ActivitiesNet cash used in financing
activities for the six months ended 31 July 2019 of £0.2
million primarily relates to lease liability repayments. Net cash
generated from financing activities for the six months ended
31 July 2018 of £14.1 million was primarily driven by
£14.1 million of proceeds, net of transaction costs, received
following the Group’s equity placing in March 2018.
Financial Position and Cash Runway
Guidance
As at 31 July 2019, total cash and cash
equivalents held were £20.9 million (31 January 2019: £26.9
million).
The Group believes that its existing cash and
cash equivalents, anticipated payments from BARDA under its
contract for the development of ridinilazole and anticipated
payments from CARB-X under its contract for the development of its
gonorrhoea antibiotic candidate, will be sufficient to enable the
Group to fund its operating expenses and capital expenditure
requirements through to at least 31 January 2020.
Glyn EdwardsChief Executive Officer11 October
2019
FINANCIAL STATEMENTS
Condensed Consolidated Statement of Comprehensive
Income (unaudited) For the three months ended 31 July
2019
|
|
|
Three months ended 31 July 2019 |
|
Three months ended 31 July 2019 |
|
Three months ended 31 July 2018 |
|
|
|
|
|
|
|
(Adjusted*) |
|
Note |
|
$000s |
|
£000s |
|
£000s |
|
|
|
|
|
|
|
|
Revenue |
|
|
154 |
|
|
126 |
|
|
37,958 |
|
|
|
|
|
|
|
|
|
Other operating
income |
|
|
5,053 |
|
|
4,135 |
|
|
2,699 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Research and development |
|
|
(11,262 |
) |
|
(9,216 |
) |
|
(9,854 |
) |
General and administration |
|
|
(1,471 |
) |
|
(1,204 |
) |
|
(2,327 |
) |
Impairment of goodwill and intangible assets |
|
|
— |
|
|
— |
|
|
(3,986 |
) |
Total operating expenses |
|
|
(12,733 |
) |
|
(10,420 |
) |
|
(16,167 |
) |
Operating (loss) /
profit |
|
|
(7,526 |
) |
|
(6,159 |
) |
|
24,490 |
|
|
|
|
|
|
|
|
|
Finance income |
|
|
— |
|
|
— |
|
|
2,785 |
|
Finance costs |
|
|
(76 |
) |
|
(62 |
) |
|
(150 |
) |
(Loss) / profit before income tax |
|
|
(7,602 |
) |
|
(6,221 |
) |
|
27,125 |
|
|
|
|
|
|
|
|
|
Income
tax |
|
|
1,298 |
|
|
1,062 |
|
|
(491 |
) |
(Loss) / profit for the period |
|
|
(6,304 |
) |
|
(5,159 |
) |
|
26,634 |
|
|
|
|
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
|
|
|
Items that may be reclassified
subsequently to profit or loss |
|
|
|
|
|
|
|
Exchange differences on
translating foreign operations |
|
|
22 |
|
|
18 |
|
|
12 |
|
Total comprehensive (loss) / profit for the
period |
|
|
(6,282 |
) |
|
(5,141 |
) |
|
26,646 |
|
|
|
|
|
|
|
|
|
Basic and diluted (loss) / earnings per ordinary share from
operations |
2 |
|
(4) cents |
|
(3) pence |
|
32 pence |
* See Note 1 - ‘Basis of Accounting - Adoption
of IFRS 16 ‘Leases’’
Condensed Consolidated Statement of Comprehensive
Income (unaudited) For the six months ended 31 July
2019
|
|
|
Six months ended 31 July 2019 |
|
Six months ended 31 July 2019 |
|
Six months ended 31 July 2018 |
|
|
|
|
|
|
|
(Adjusted*) |
|
Note |
|
$000s |
|
£000s |
|
£000s |
|
|
|
|
|
|
|
|
Revenue |
|
|
458 |
|
|
375 |
|
|
41,832 |
|
|
|
|
|
|
|
|
|
Other operating
income |
|
|
11,005 |
|
|
9,006 |
|
|
6,154 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Research and development |
|
|
(21,372 |
) |
|
(17,489 |
) |
|
(21,444 |
) |
General and administration |
|
|
(3,494 |
) |
|
(2,859 |
) |
|
(4,655 |
) |
Impairment of goodwill and intangible assets |
|
|
— |
|
|
— |
|
|
(3,986 |
) |
Total operating expenses |
|
|
(24,866 |
) |
|
(20,348 |
) |
|
(30,085 |
) |
Operating (loss) /
profit |
|
|
(13,403 |
) |
|
(10,967 |
) |
|
17,901 |
|
|
|
|
|
|
|
|
|
Finance income |
|
|
2 |
|
|
2 |
|
|
2,786 |
|
Finance costs |
|
|
(150 |
) |
|
(123 |
) |
|
(350 |
) |
(Loss) / profit before income tax |
|
|
(13,551 |
) |
|
(11,088 |
) |
|
20,337 |
|
|
|
|
|
|
|
|
|
Income
tax |
|
|
2,327 |
|
|
1,904 |
|
|
455 |
|
(Loss) / profit for the period |
|
|
(11,224 |
) |
|
(9,184 |
) |
|
20,792 |
|
|
|
|
|
|
|
|
|
Other comprehensive
income |
|
|
|
|
|
|
|
Items that may be reclassified
subsequently to profit or loss |
|
|
|
|
|
|
|
Exchange differences on
translating foreign operations |
|
|
26 |
|
|
21 |
|
|
19 |
|
Total comprehensive (loss) / profit for the
period |
|
|
(11,198 |
) |
|
(9,163 |
) |
|
20,811 |
|
|
|
|
|
|
|
|
|
Basic and diluted (loss) / earnings per ordinary share from
operations |
2 |
|
(7) cents |
|
(6) pence |
|
26 pence |
* See Note 1 - ‘Basis of Accounting - Adoption
of IFRS 16 ‘Leases’’
Condensed Consolidated Statement of Financial
Position (unaudited) As at 31 July 2019
|
|
|
31 July
2019 |
|
31 July
2019 |
|
31 January 2019 |
|
|
|
|
|
|
|
(Adjusted*) |
|
|
|
$000s |
|
£000s |
|
£000s |
ASSETS |
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
Goodwill |
|
|
2,217 |
|
|
1,814 |
|
|
1,814 |
|
Intangible assets |
|
|
12,574 |
|
|
10,290 |
|
|
10,604 |
|
Property, plant and
equipment |
|
|
1,668 |
|
|
1,365 |
|
|
1,540 |
|
|
|
|
16,459 |
|
|
13,469 |
|
|
13,958 |
|
Current
assets |
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
13,049 |
|
|
10,679 |
|
|
13,491 |
|
Current tax receivable |
|
|
4,166 |
|
|
3,409 |
|
|
6,328 |
|
Cash and cash equivalents |
|
|
25,498 |
|
|
20,866 |
|
|
26,858 |
|
|
|
|
42,713 |
|
|
34,954 |
|
|
46,677 |
|
Total assets |
|
|
59,172 |
|
|
48,423 |
|
|
60,635 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
Lease liabilities |
|
|
(594 |
) |
|
(486 |
) |
|
(647 |
) |
Deferred revenue |
|
|
(711 |
) |
|
(582 |
) |
|
(831 |
) |
Provisions for other
liabilities and charges |
|
|
(2,391 |
) |
|
(1,957 |
) |
|
(1,851 |
) |
Deferred tax liability |
|
|
(1,970 |
) |
|
(1,612 |
) |
|
(1,675 |
) |
|
|
|
(5,666 |
) |
|
(4,637 |
) |
|
(5,004 |
) |
Current
liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
|
(7,938 |
) |
|
(6,496 |
) |
|
(8,733 |
) |
Lease liabilities |
|
|
(437 |
) |
|
(358 |
) |
|
(358 |
) |
Deferred revenue |
|
|
(3,846 |
) |
|
(3,147 |
) |
|
(3,374 |
) |
Contingent consideration |
|
|
(98 |
) |
|
(80 |
) |
|
(629 |
) |
|
|
|
(12,319 |
) |
|
(10,081 |
) |
|
(13,094 |
) |
Total liabilities |
|
|
(17,985 |
) |
|
(14,718 |
) |
|
(18,098 |
) |
Net assets |
|
|
41,187 |
|
|
33,705 |
|
|
42,537 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
Share capital |
|
|
1,961 |
|
|
1,605 |
|
|
1,604 |
|
Share premium account |
|
|
113,409 |
|
|
92,806 |
|
|
92,806 |
|
Share-based payment
reserve |
|
|
1,333 |
|
|
1,091 |
|
|
1,148 |
|
Merger reserve |
|
|
3,699 |
|
|
3,027 |
|
|
3,027 |
|
Special reserve |
|
|
24,431 |
|
|
19,993 |
|
|
19,993 |
|
Currency translation
reserve |
|
|
94 |
|
|
77 |
|
|
56 |
|
Accumulated losses
reserve |
|
|
(103,740 |
) |
|
(84,894 |
) |
|
(76,097 |
) |
Total equity |
|
|
41,187 |
|
|
33,705 |
|
|
42,537 |
|
* See Note 1 - ‘Basis of Accounting - Adoption
of IFRS 16 ‘Leases’’
Condensed Consolidated Statement of Cash Flows
(unaudited)
For the six months ended
31 July 2019
|
|
Six months ended 31 July 2019 |
|
Six months ended 31 July 2019 |
|
Six months ended 31 July 2018 |
|
|
|
|
|
|
(Adjusted*) |
|
|
$000s |
|
£000s |
|
£000s |
Cash flows from operating activities |
|
|
|
|
|
|
(Loss) / profit before income
tax |
|
(13,551 |
) |
|
(11,088 |
) |
|
20,337 |
|
|
|
(13,551 |
) |
|
(11,088 |
) |
|
20,337 |
|
Adjusted for: |
|
|
|
|
|
|
Gain on re-measurement of
financial liabilities on funding arrangements |
|
— |
|
|
— |
|
|
(539 |
) |
Finance income |
|
(2 |
) |
|
(2 |
) |
|
(2,786 |
) |
Finance costs |
|
150 |
|
|
123 |
|
|
350 |
|
Foreign exchange gain |
|
(1,612 |
) |
|
(1,319 |
) |
|
(839 |
) |
Depreciation |
|
347 |
|
|
284 |
|
|
324 |
|
Amortisation of intangible
fixed assets |
|
506 |
|
|
414 |
|
|
415 |
|
Loss on disposal of
assets |
|
12 |
|
|
10 |
|
|
24 |
|
Impairment of goodwill and
intangible assets |
|
— |
|
|
— |
|
|
3,986 |
|
Share-based payment |
|
403 |
|
|
330 |
|
|
1,163 |
|
Adjusted (loss) / profit from operations before changes in
working capital |
|
(13,747 |
) |
|
(11,248 |
) |
|
22,435 |
|
|
|
|
|
|
|
|
Decrease / (increase) in
prepayments and other receivables |
|
3,581 |
|
|
2,930 |
|
|
(327 |
) |
Decrease in deferred
revenue |
|
(582 |
) |
|
(477 |
) |
|
(37,519 |
) |
Decrease in trade and other
payables |
|
(3,032 |
) |
|
(2,482 |
) |
|
(2,378 |
) |
Cash used in operations |
|
(13,780 |
) |
|
(11,277 |
) |
|
(17,789 |
) |
|
|
|
|
|
|
|
Contingent consideration
paid |
|
(671 |
) |
|
(549 |
) |
|
— |
|
Taxation received /
(paid) |
|
5,984 |
|
|
4,897 |
|
|
(53 |
) |
Net cash used in operating activities |
|
(8,467 |
) |
|
(6,929 |
) |
|
(17,842 |
) |
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
(144 |
) |
|
(118 |
) |
|
(50 |
) |
Purchase of intangible assets |
|
(122 |
) |
|
(100 |
) |
|
(5 |
) |
Interest received |
|
2 |
|
|
2 |
|
|
2 |
|
Net cash used in investing activities |
|
(264 |
) |
|
(216 |
) |
|
(53 |
) |
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
Proceeds from issue of share
capital |
|
— |
|
|
— |
|
|
15,000 |
|
Transaction costs on share
capital issued |
|
— |
|
|
— |
|
|
(858 |
) |
Proceeds from exercise of
share options |
|
1 |
|
|
1 |
|
|
100 |
|
Repayment of lease liabilities |
|
(218 |
) |
|
(179 |
) |
|
(159 |
) |
Net cash (used in) / generated from financing
activities |
|
(217 |
) |
|
(178 |
) |
|
14,083 |
|
|
|
|
|
|
|
|
Decrease in cash and
cash equivalents |
|
(8,948 |
) |
|
(7,323 |
) |
|
(3,812 |
) |
Effect of exchange
rates in cash and cash equivalents |
|
1,626 |
|
|
1,331 |
|
|
839 |
|
Cash and cash
equivalents at beginning of the period |
|
32,820 |
|
|
26,858 |
|
|
20,102 |
|
Cash and cash equivalents at end of the
period |
|
25,498 |
|
|
20,866 |
|
|
17,129 |
|
* See Note 1 - ‘Basis of Accounting - Adoption
of IFRS 16 ‘Leases’’
Condensed Consolidated Statement of
Changes in Equity (unaudited)
Six months ended 31 July 2019
Group |
|
Share capital£000s |
|
Share premium account£000s |
|
Share-based payment reserve£000s |
|
Merger reserve£000s |
|
Special reserve£000s |
|
Currencytranslationreserve£000s |
|
Accumulated losses reserve£000s |
|
Total £000s |
At 31 January 2019 (as previously reported) |
|
1,604 |
|
|
92,806 |
|
|
1,148 |
|
|
3,027 |
|
|
19,993 |
|
|
56 |
|
|
(76,092 |
) |
|
42,542 |
|
Change in accounting policy (full retrospective application
IFRS 16) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
(5 |
) |
At
31 January 2019 (Adjusted*) |
|
1,604 |
|
|
92,806 |
|
|
1,148 |
|
|
3,027 |
|
|
19,993 |
|
|
56 |
|
|
(76,097 |
) |
|
42,537 |
|
Loss for the period |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,184 |
) |
|
(9,184 |
) |
Currency translation
adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
21 |
|
|
— |
|
|
21 |
|
Total comprehensive loss for the period |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
21 |
|
|
(9,184 |
) |
|
(9,163 |
) |
Share options exercised |
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Share-based payment |
|
— |
|
|
— |
|
|
330 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
330 |
|
Share-based payment
reserve transfer |
|
— |
|
|
— |
|
|
(387 |
) |
|
— |
|
|
— |
|
|
— |
|
|
387 |
|
|
— |
|
At 31 July
2019 |
|
1,605 |
|
|
92,806 |
|
|
1,091 |
|
|
3,027 |
|
|
19,993 |
|
|
77 |
|
|
(84,894 |
) |
|
33,705 |
|
Year ended 31 January 2019
Group |
|
Share capital£000s |
|
Share premium account£000s |
|
Share-based payment reserve£000s |
|
Merger reserve£000s |
|
Special reserve£000s |
|
Currencytranslationreserve£000s |
|
Accumulated losses reserve£000s |
|
Total £000s |
At 31 January 2018 (as previously reported) |
|
736 |
|
|
60,237 |
|
|
6,743 |
|
|
3,027 |
|
|
19,993 |
|
|
37 |
|
|
(93,957 |
) |
|
(3,184 |
) |
Change in accounting
policy (full retrospective application IFRS 16) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
32 |
|
|
32 |
|
At 31 January 2018
(Adjusted*) |
|
736 |
|
|
60,237 |
|
|
6,743 |
|
|
3,027 |
|
|
19,993 |
|
|
37 |
|
|
(93,925 |
) |
|
(3,152 |
) |
Profit for the year (Adjusted*) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
7,490 |
|
|
7,490 |
|
Currency translation
adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
|
— |
|
|
19 |
|
Total comprehensive profit for the period (Adjusted*) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
|
7,490 |
|
|
7,509 |
|
New share capital issued |
|
864 |
|
|
33,784 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
34,648 |
|
Transaction costs on share capital issued |
|
— |
|
|
(1,313 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,313 |
) |
Share options exercised |
|
4 |
|
|
98 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
102 |
|
Share-based payment |
|
— |
|
|
— |
|
|
4,743 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,743 |
|
Share-based payment
reserve transfer |
|
— |
|
|
— |
|
|
(10,338 |
) |
|
— |
|
|
— |
|
|
— |
|
|
10,338 |
|
|
— |
|
At 31 January
2019 (Adjusted*) |
|
1,604 |
|
|
92,806 |
|
|
1,148 |
|
|
3,027 |
|
|
19,993 |
|
|
56 |
|
|
(76,097 |
) |
|
42,537 |
|
Six months ended 31 July 2018
Group |
|
Share capital£000s |
|
Share premium account£000s |
|
Share-based payment reserve£000s |
|
Merger reserve£000s |
|
Special reserve£000s |
|
Currencytranslationreserve£000s |
|
Accumulated losses reserve£000s |
|
Total £000s |
At 31 January 2018 (as previously reported) |
|
736 |
|
|
60,237 |
|
|
6,743 |
|
|
3,027 |
|
|
19,993 |
|
|
37 |
|
|
(93,957 |
) |
|
(3,184 |
) |
Change in accounting policy (full retrospective application
IFRS 16) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
32 |
|
|
32 |
|
At
31 January 2018 (Adjusted*) |
|
736 |
|
|
60,237 |
|
|
6,743 |
|
|
3,027 |
|
|
19,993 |
|
|
37 |
|
|
(93,925 |
) |
|
(3,152 |
) |
Profit for the period (Adjusted*) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20,792 |
|
|
20,792 |
|
Currency translation
adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
|
— |
|
|
19 |
|
Total comprehensive profit for the period (Adjusted*) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
|
20,792 |
|
|
20,811 |
|
New share capital issued |
|
83 |
|
|
14,917 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
15,000 |
|
Transaction costs on share capital issued |
|
— |
|
|
(858 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(858 |
) |
Share options exercised |
|
2 |
|
|
98 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100 |
|
Share-based
payment |
|
— |
|
|
— |
|
|
1,163 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,163 |
|
At 31 July
2018 (Adjusted*) |
|
821 |
|
|
74,394 |
|
|
7,906 |
|
|
3,027 |
|
|
19,993 |
|
|
56 |
|
|
(73,133 |
) |
|
33,064 |
|
* See Note 1 - ‘Basis of Accounting - Adoption of IFRS 16
‘Leases’’
The accompanying notes form an integral part of
these condensed consolidated interim financial statements.
NOTES TO THE FINANCIAL INFORMATION
For the three and six months ended
31 July 2019
1. Basis of AccountingThe
unaudited condensed consolidated interim financial statements of
Summit Therapeutics plc ('Summit') and its subsidiaries (together,
the ‘Group’) for the three and six months ended
31 July 2019 have been prepared in accordance with
International Financial Reporting Standards ('IFRS') and
International Financial Reporting Interpretations Committee
(‘IFRIC’) interpretations as issued by the International Accounting
Standards Board and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS including those
applicable to accounting periods ending 31 January 2020 and the
accounting policies set out in Summit’s consolidated financial
statements. There have been no changes to the accounting policies
as contained in the annual consolidated financial statements as of
and for the year ended 31 January 2019 other than as described
below. During the year ended 31 January 2019, the Group re-assessed
the allocation of certain staff related expenses, totalling £0.4
million during the three months ended 31 July 2018 and £0.7 million
during the six months ended 31 July 2018. These costs were
previously reported as general and administration expenses but are
now presented as research and development expenses. These condensed
consolidated interim financial statements do not include all
information required for full statutory accounts within the meaning
of section 434 of Companies Act 2006 and should be read in
conjunction with the consolidated financial statements of the Group
as at 31 January 2019 (the ‘2019 Accounts’). The 2019 Accounts, on
which the Company’s auditors delivered an unqualified audit report,
are available on the Group's website at www.summitplc.com and were
delivered to the Registrar of Companies following the 2019 Annual
General Meeting. The auditor’s report did not contain any statement
under section 498 of the Companies Act 2006 but did contain a
statement from the auditors drawing the shareholders’ attention to
the Group’s need to raise additional capital as noted below.
Whilst the financial information included in
this announcement has been prepared in accordance with IFRS and
IFRIC interpretations as issued by the International Accounting
Standards Board and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS, this announcement
does not itself contain sufficient information to comply with
IFRS.
The interim financial statements have been
prepared assuming the Group will continue on a going concern basis.
Based on management's forecasts, the Group's existing cash and cash
equivalents, anticipated payments from BARDA under its contract for
the development of ridinilazole and anticipated payments from
CARB-X under its contract for the development of its gonorrhoea
antibiotic candidate are expected to be sufficient to enable the
Group to fund its operating expenses and capital expenditure
requirements through to at least 31 January 2020. The Group will
need to raise additional funding in order to support, beyond this
date, its planned research and development efforts, its preparatory
commercialisation related activities should ridinilazole receive
marketing approval, as well as to support activities associated
with operating as a public company in the United States and the
United Kingdom.
The Group is evaluating various options to
finance its cash needs through a combination of some, or all, of
the following: equity offerings, collaborations, strategic
alliances, grants and clinical trial support from government
entities, philanthropic, non-government and not-for-profit
organisations and patient advocacy groups, debt financings, and
marketing, distribution or licensing arrangements. Whilst the Group
believes that funds would be available in this manner before the
end of January 2020, there can be no assurance that the Group will
be able to generate funds, on terms acceptable to the Group, on a
timely basis or at all, which would impact the Group’s ability to
continue as a going concern.
Management has identified specific mitigating
actions which it would be required to take in the near future
should the Group be unable to raise additional funding, including,
amongst others, a slow-down of its ongoing Phase 3 clinical trials
and suspending its Discuva Platform activities and associated
research programmes. Should the Group be required to take these
steps, it is currently expected that its current and anticipated
cash and cash equivalents would be sufficient through to at least
31 October 2020. The failure of the Group to obtain
sufficient funds on acceptable terms when needed would therefore
have a material adverse effect on the Group’s business, results of
operations and financial condition.
These circumstances represent a material uncertainty which may
cast and raise significant doubt on the Group’s ability to continue
as a going concern. The interim financial statements do not contain
any adjustments that might result if the Group was unable to
continue as a going concern.
The financial information for the three and six
month periods ended 31 July 2019 and 2018 are
unaudited.
Solely for the convenience of the reader, unless
otherwise indicated, all pound sterling amounts stated in the
Consolidated Statement of Financial Position as at
31 July 2019, the Consolidated Statement of Comprehensive
Income for the three and six months ended 31 July 2019
and Consolidated Statement of Cash Flows for the six months ended
31 July 2019 have been translated into US dollars at the
rate on 31 July 2019 of $1.2220 to £1.00. These
translations should not be considered representations that any such
amounts have been, could have been or could be converted into US
dollars at that or any other exchange rate as at that or any other
date.
The Board of Directors of the Company approved
this statement on 11 October 2019.
Adoption of IFRS 16
'Leases'IFRS 16 specifies how to recognise, measure,
present and disclose leases. The standard provides a single lessee
accounting model, requiring lessees to recognise assets and
liabilities for all leases unless the lease term is 12 months or
less or the underlying asset has a low value. The standard is
effective for reporting periods beginning on or after 1 January
2019 and replaces the accounting standard IAS 17 'Leases'. Two
adoption methods are permitted for transition: retrospectively to
all prior reporting periods presented in accordance with IAS 8
'Accounting Policies, Changes in Accounting Estimates and Errors',
with certain practical expedients permitted; or retrospectively
with the cumulative effect of initially applying the standard
recognised at the date of initial application.
Accounting policyAt inception of a contract, the Group assesses
whether a contract is, or contains, a lease based on whether the
contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. The Group
recognises a right-of-use asset within property, plant and
equipment and a lease liability at the lease commencement date. The
right-of-use asset is initially measured based on the initial
amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received. The assets
are depreciated to the earlier of the end of the useful life of the
right-of-use asset or the lease term using the straight-line
method. The lease term includes periods covered by an option to
extend if the Group is reasonably certain to exercise that option
and periods covered by an option to terminate if it is reasonably
certain not to exercise that option. The lease liability is
initially measured at the present value of the lease payments that
are not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be
readily determined, the Group's incremental borrowing rate. The
lease liability is subsequently measured at amortised cost using
the effective interest method and is remeasured when there is a
change in future contractual lease payments or if the Group changes
its assessment of whether it will exercise a purchase, extension or
termination option.
The Group adopted this new standard effective 1 February 2019,
as required, using the full retrospective transition method in
accordance with IAS 8 'Accounting Policies, Changes in Accounting
Estimates and Errors'. Under this method, the Group will
adjust its results for the years ended 31 January 2018, and 2019,
and applicable interim periods, as if IFRS 16 had been effective
for those periods. The Group has assessed the effect of
adoption of this standard as it relates to its UK leased properties
in Oxford and Cambridge and has concluded that any other contracts
are not within the scope of IFRS 16 or are of low value, for which
the Group has elected not to apply the requirement of IFRS 16.
Due to the adoption of IFRS 16, the Group has
recognised both right-of-use assets and lease liabilities related
to its UK leased properties. The Group no longer recognises a lease
incentive accrual and has reclassified some costs from research and
development expenses and general and administration expenses to
finance costs, being the interest expense on lease liabilities. In
addition, some amounts previously presented as cash outflows from
operating activities in the Group's Consolidated Statement of Cash
Flows are now presented as cash flows from investing or financing
activities.
This change in accounting policy has been reflected
retrospectively in the comparative Statement of Financial Position
for the year ended 31 January 2019, the comparative Statement of
Comprehensive Income, Statement of Cash Flows and Statement of
Changes in Equity for the six months ended 31 July 2018,
including the opening accumulated losses reserve at 1 February 2018
and 1 February 2019.
The impact of the change in accounting policy to
IFRS 16 discussed above on the comparatives to the unaudited
condensed consolidated interim financial statements is disclosed in
the following tables.
Impact on Unaudited
Condensed Consolidated |
OriginalYear ended 31 January
2019 |
|
AdjustedYear ended 31 January
2019 |
|
Impact |
Statement of Financial Position |
£000s |
|
£000s |
|
£000s |
Non-current assets |
|
|
|
|
|
Property,
plant and equipment |
616 |
|
|
1,540 |
|
|
924 |
|
Current assets |
|
|
|
|
|
Trade and
other receivables |
13,547 |
|
|
13,491 |
|
|
(56 |
) |
Non-current liabilities |
|
|
|
|
|
Lease
liabilities |
— |
|
|
(647 |
) |
|
(647 |
) |
Current liabilities |
|
|
|
|
|
Trade and
other payables |
(8,865 |
) |
|
(8,733 |
) |
|
132 |
|
Lease
liabilities |
— |
|
|
(358 |
) |
|
(358 |
) |
Equity |
|
|
|
|
|
Accumulated losses reserve |
(76,092 |
) |
|
(76,097 |
) |
|
(5 |
) |
Impact on Unaudited
Condensed Consolidated |
OriginalThree
monthsended31 July
2018 |
|
Adjusted Three months ended31 July
2018 |
|
Impact |
Statement of Comprehensive Income |
£000s |
|
£000s |
|
£000s |
Operating expenses |
|
|
|
|
|
Research
and development |
(9,846 |
) |
|
(9,854 |
) |
|
(8 |
) |
General
and administration |
(2,330 |
) |
|
(2,327 |
) |
|
3 |
|
Operating profit |
24,495 |
|
|
24,490 |
|
|
(5 |
) |
Finance
costs |
(140 |
) |
|
(150 |
) |
|
(10 |
) |
Profit for the period |
26,649 |
|
|
26,634 |
|
|
(15 |
) |
Impact on Unaudited
Condensed Consolidated |
OriginalSix
monthsended31 July
2018 |
|
Adjusted Six months ended31 July
2018 |
|
Impact |
Statement of Comprehensive Income |
£000s |
|
£000s |
|
£000s |
Operating expenses |
|
|
|
|
|
Research
and development |
(21,438 |
) |
|
(21,444 |
) |
|
(6 |
) |
General
and administration |
(4,661 |
) |
|
(4,655 |
) |
|
6 |
|
Operating profit |
17,901 |
|
|
17,901 |
|
|
— |
|
Finance
costs |
(328 |
) |
|
(350 |
) |
|
(22 |
) |
Profit for the period |
20,814 |
|
|
20,792 |
|
|
(22 |
) |
Impact on Unaudited
Condensed Consolidated |
OriginalSix months
ended31 July 2018 |
|
AdjustedSix months
ended31 July 2018 |
|
Impact |
Statement of Cash Flows |
£000s |
|
£000s |
|
£000s |
Profit before income tax |
20,359 |
|
|
20,337 |
|
|
(22 |
) |
Adjusted for: |
|
|
|
|
|
Finance costs |
328 |
|
|
350 |
|
|
22 |
|
Depreciation |
157 |
|
|
324 |
|
|
167 |
|
Increase
in trade and other receivables |
(336 |
) |
|
(327 |
) |
|
9 |
|
Increase
in trade and other payables |
(2,361 |
) |
|
(2,378 |
) |
|
(17 |
) |
Financing activities |
|
|
|
|
|
Repayment of lease liabilities |
— |
|
|
(159 |
) |
|
(159 |
) |
Impact on net cash flows |
|
|
|
|
— |
|
The Group will continue to monitor
interpretations released by the IFRS Interpretations Committee and
amendments to IFRS 16 and, as appropriate, will adopt these from
the effective dates.
2. (Loss) / earnings per Share Calculation
The calculation of (loss) / earnings per share
is based on the following data:
|
Three months ended31 July
2019 |
|
Three months ended31 July 2018 |
|
Six months ended31 July 2019 |
|
Six months ended31 July 2018 |
|
|
|
(Adjusted*) |
|
|
|
(Adjusted*) |
|
000s |
|
000s |
|
000s |
|
000s |
(Loss) / profit for the
period |
(5,159 |
) |
|
26,634 |
|
|
(9,184 |
) |
|
20,792 |
|
|
|
|
|
|
|
|
|
Weighted average number of
ordinary shares for basic (loss) / earnings per share |
160,495 |
|
|
82,008 |
|
|
160,398 |
|
|
79,335 |
|
Effect of dilutive potential
ordinary shares (share options and warrants) |
— |
|
|
649 |
|
|
— |
|
|
628 |
|
Weighted average number of
ordinary shares for diluted (loss) / earnings per share |
160,495 |
|
|
82,657 |
|
|
160,398 |
|
|
79,963 |
|
|
|
|
|
|
|
|
|
Basic (loss) / earnings per ordinary share from operations
£ |
(0.03 |
) |
|
0.32 |
|
|
(0.06 |
) |
|
0.26 |
|
Diluted (loss) / earnings per ordinary share from
operations £ |
(0.03 |
) |
|
0.32 |
|
|
(0.06 |
) |
|
0.26 |
|
* See Note 1 - ‘Basis of Accounting - Adoption
of IFRS 16 ‘Leases’’
Basic (loss) / earnings per ordinary share has
been calculated by dividing the (loss) / profit for the three and
six months ended 31 July 2019 by the weighted average number of
shares in issue during the three and six months ended 31 July 2019.
Diluted earnings per ordinary share has been calculated by
adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all potentially dilutive
ordinary shares. Potentially dilutive ordinary shares represent the
number of shares that could have been acquired at fair value based
on the monetary value of the subscription rights attached to share
options in-the-money compared with the number of shares that would
have been issued assuming the exercise of share options
in-the-money.
IAS 33 ‘Earnings per Share’ requires the
presentation of diluted earnings per share where a company could be
called upon to issue shares that would decrease net profit or loss
per share. As the Group reported net losses for the three and six
months ended 31 July 2019, the weighted average number of ordinary
shares outstanding used to calculate the diluted (loss) / earnings
per ordinary share is the same as that used to calculate the basic
(loss) / earnings per ordinary share, as the exercise of share
options would have the effect of reducing loss per ordinary share
which is not dilutive.
3. Issue of Share Capital
On 23 April 2019, 104,877 ordinary shares were issued following
the exercise of restricted stock units ('RSUs'). This exercise of
RSUs raised net proceeds of £1,049.
The new ordinary shares issued in connection
with the RSUs exercised rank pari passu with existing ordinary
shares.
As of 31 July 2019, the number of ordinary
shares in issue was 160,494,758.
-END-
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