RNS Number:2834T
Henderson Morley PLC
16 December 2003
FOR IMMEDIATE RELEASE 16 DECEMBER 2003
HENDERSON MORLEY PLC
(AIM)
INTERIM RESULTS FOR THE SIX MONTHS TO 31 OCTOBER 2003
Key Points:
* Patent Licence signed with Croma Pharma GmbH in respect of the ocular
application of Ionic Contra Viral Therapy ("ICVT");
* Phase I clinical trials commenced and completed;
* Start of patient recruitment in an International six centre, randomised,
double-blinded placebo controlled Phase ll clinical trial;
* New Study to examine the use of ICVT in the treatment of genital warts in
men
Chairman's Statement
Financial Summary
The Board of Henderson Morley plc ("Henderson Morley" or "the Company")
announces its Interim results for the six months to 31 October 2003. Turnover
for the period was #4,004 (2002: #6,157), which after expenses, the results
showed a pre-tax loss of #377,365 (2002: #364,719). Cash at Bank at 31 October
2003 was #354,094.
New Phase II Study
In September 2003, we were able to announce the commencement of a Phase ll study
to examine the use of ICVT against genital warts in men following approval from
the Ethics Committee.
The study is under the supervision of Dr Humphrey Birley, a consultant in
genitourinary medicine, practicing at the Department of Genitourinary medicine
at the Cardiff Royal Infirmary in Cardiff. Dr Birley's study will be examining
the safety and efficacy of ICVT in the treatment of genital warts in men. Dr.
Birley is co-author of the National Guidelines for the treatment of genital
warts and has had numerous papers published on the subject.
Preliminary results are expected during the first half of 2004. The data created
by this study will be used to attract further commercial partners for the ICVT
platform. The Company believes success in this study should have important
implications for the treatment of these other conditions.
Funds Raised
In September, we issued a further 19,957,143 Ordinary shares at 1.75p per share
to raise #349,250. The funds will be used to further the research and
development and to provide working capital. A proportion of the shares were
placed with institutional holders.
Croma starts Phase II trial
In November 2003, we were able to announce that, following Croma Pharma's
successful completion of the initial (Phase I) work on the ocular application of
ICVT, patient recruitment had begun for an International, multi-centre,
randomised, double-blinded placebo controlled Phase ll clinical trial. The study
is to examine the safety and efficacy of ICVT, when used to treat Adenovirus
Keratoconjunctivitis.
The study, funded by Croma, will recruit 140 patients and be carried out in six
centres in Austria and Slovakia.
Patients will be monitored by slit lamp microscope at several stages of the
infection, and only patients who have a positive diagnosis of adenovirus
infection (confirmed using molecular biological techniques) will be included in
the study. The treatment will be in the form of aqueous drops applied during the
course of the infection and it is anticipated that patients will not require
treatment for longer than 21 days.
Outlook
ICVT is a unique platform technology which enables us to explore many
opportunities within the DNA virus arena, and as a result, we continue to
position the company to research areas where there are unmet clinical needs
coupled with patient demand.
ANDREW KNIGHT
Executive Chairman
Enquiries:
HENDERSON MORLEY PLC Tel: 0121 442 4600
Andrew Knight, Chairman
BREWIN DOLPHIN SECURITIES LTD Tel: 0113 241 0126
Neil Baldwin
BISHOPSGATE COMMUNICATIONS LTD Tel: 020 7430 1600
Maxine Barnes Mobile 07860 489571
CONSOLIDATED PROFIT AND LOSS ACCOUNT
6 months to 6 months to Year
31 October 31 October Ended
2003 2002 30 April
(Unaudited) (Unaudited) 2003
(Audited)
# # #
TURNOVER 4,004 6,157 10,931
Cost of sales (2,476) (3,285) (6,850)
GROSS PROFIT 1,528 2,872 4,081
Administrative expenses (201,445) (178,896) (455,281)
Research and development (166,104) (178,714) (218,190)
Amortisation of goodwill (7,370) (7,370) (14,740)
OPERATING LOSS (373,391) (362,108) (684,130)
Interest (net) (3,974) (2,611) (663)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (377,365) (364,719) (684,793)
Tax on loss on ordinary activities 27,398 24,523 46,883
RETAINED LOSS FOR THE PERIOD (349,967) (340,196) (637,910)
Loss per Ordinary Share
Basic and Diluted (0.18)p (0.22p) (0.40p)
CONSOLIDATED BALANCE SHEET
As at As at As At
31 October 31 October 30 April
2003 2002 2003
(Unaudited) (Unaudited) (Audited)
# # #
FIXED ASSETS
Intangible assets 148,934 163,675 156,305
Tangible Assets 90,680 108,389 94,813
239,614 272,064 251,118
CURRENT ASSETS
Stocks 17,109 20,165 18,409
Debtors 205,281 100,355 106,984
Cash at bank 354,094 225,222 40,838
576,484 345,742 166,231
CREDITORS: Amounts falling due within one year (122,114) (38,148) (147,256)
TOTAL ASSETS LESS CURRENT LIABILITIES 693,984 579,658 270,093
CREDITORS: Amounts falling due after more than one year (16,872) (35,328) (23,476)
677,112 544,330 246,617
CAPITAL AND RESERVES
Called up share capital 261,500 198,212 198,212
Share Premium Account 2,541,944 1,824,771 1,824,772
Profit and Loss Account (2,126,332) (1,478,653) (1,776,367)
EQUITY SHAREHOLDERS FUNDS 677,112 544,330 246,617
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
6 months to 6 months to Year
31 October 31 October Ended
2003 2002 30 April
(Unaudited) (Unaudited) 2003
(Audited)
# # #
Net cash outflow from operating activities (Note 1) (402,620) (372,581) (638,707)
Returns on investments and servicing of finance (3,974) (2,611) (663)
Taxation - - 44,027
Capital expenditure (9,505) (3,188) 17,038
Financing
Issue of ordinary share capital 780,460 226,415 226,416
Loans and Hire Purchase (7,714) (6,613) (34,465)
Amount introduced by Directors - (14,962) (14,962)
Increase/(Decrease) in cash 356,647 (173,540) (401,316)
Reconciliation of net cash flow to movement in net
debt
Increase/(Decrease) in cash 356,647 (173,540) (401,316)
Cash outflow from finance leases 4,066 3,592 27,883
New finance leases - - (20,500)
Movement in net debt in the period 360,713 (169,948) (393,933)
Net funds/(debt) at beginning of period (22,320) 371,613 371,613
Net funds/(debt) at end of period 338,393 201,665 (22,320)
Note1 Reconciliation of operating loss to cash outflow
from operating activities
Operating Loss (373,391) (362,108) (684,130)
Depreciation and amortisation charges 21,008 19,823 44,270
Profit on sale of fixed assets - (3,227)
Decrease in stocks 1,300 2,151 3,907
(Increase)/decrease in debtors (70,899) 17,508 (10,788)
Increase/(decrease) in creditors 19,362 (49,955) 11,261
Net cash outflow from operating activities (402,620) (372,581) (638,707)
NOTES TO THE INTERIM RESULTS
1. The interim financial statements have been prepared on the basis of
the accounting policies set out in the audited statutory accounts for the year
ended 30th April 2003.
2. The calculation of loss per share is based on the loss after tax for
the period and on 191,705,779 (30 April 2003 -157,514,334 and 31 October 2002-
156,476,002) ordinary shares, being the weighted average number of shares in
issue during the period.
3. By an ordinary resolution passed at the Company's Annual General
Meeting held on 12 August 2003 the authorised share capital of the Company was
increased from #250,000 to #375,000 by the creation of 100,000,000 ordinary
shares of 0.125 pence each.
4. On 8 May 2003 the Company issued 30,673,330 ordinary shares of 0.125p
at 1.50p per share for cash. On 26 September 2003 the Company issued 19,957,143
ordinary shares of 0.125p at 1.75p per share for cash.
5. This statement does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985. The statutory accounts for the period to
30 April 2003, upon which the auditors issued an unqualified report, have been
filed with the Registrar of Companies.
6. This interim report is being sent to all shareholders and is
available to the public from the company's registered office at Metropolitan
House, 2 Salisbury Road, Moseley, Birmingham B13 8JS.
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The company news service from the London Stock Exchange
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