TIDM3DD
RNS Number : 7418Z
3D Diagnostic Imaging PLC
21 March 2012
For immediate release 21 March 2012
3D DIAGNOSTIC IMAGING PLC
("3D" or the "Company")
(AIM ticker 3DD)
Unaudited interim results
for the six months ended 31 December 2011
3D, which owns the protected rights to a technology platform
with a number of significant potential commercial applications,
today announces its interim results for the six month period ended
31 December 2011.
Highlights
-- GBP1.41 million (before costs) of additional equity capital
successfully raised in October 2011
-- Cost base tightly managed
-- Significant enhancement in product functionality with all
units in the field being successfully upgraded
-- CarieScan PRO gaining industry recognition
-- GBP1.07 million of cash at period end
-- Early signs of an improvement in sales in 2012
David Snow, Interim Non-Executive Chairman of 3D Diagnostic
Imaging said:
"This has been a period of mixed fortunes for the Company with a
number of major achievements. Whilst we were disappointed with the
level of sales traction we achieved in the six months to 31
December 2011, we now see some early signs of an improvement in
trading as a result of the initiatives we have subsequently put in
place. The Board continues to review the Company's strategy and
also consider potential ways to further strengthen the balance
sheet."
For further information please contact
3D Diagnostic Imaging Plc.
Graham Lay, CEO
Oliver Cooke, CFO +44 (0) 1382 560 910
Allenby Capital Limited
(Nominated Adviser and Broker)
Nick Naylor
Nick Athanas +44 (0) 203 328 5656
Buchanan Scotland
Diane Stewart
Carrie Clement +44 (0) 131 226 6150 / (0) 207
Karyn McShane 466 5000
Chairman's Half Year Statement
This is my first report to shareholders of the Company. I joined
the Board as a non-executive director in December 2011. In February
2012 James Noble stepped down from the role of non-executive
chairman as a direct consequence of a significant expansion in the
level of activity within both of the companies where he serves as
executive chairman, and which comprise his principal business
interests. I then agreed to step into the role of non-executive
chairman on a temporary basis until such time as a suitable
replacement can be recruited. In this capacity I am pleased to
report on the six month period to 31 December 2011.
This has been a period of mixed fortunes for the Company with a
number of major achievements and some significant operational
frustrations.
Amongst the achievements were: (i) the successful raising of
GBP1.41 million (before costs) of additional equity; (ii) further
cost reduction through, inter alia, the transfer of control of the
Company from the Isle of Man to Dundee; (iii) the release of a
favourable product report by a highly influential dental industry
product reviewer; (iv) a significant enhancement in product
functionality with all units in the field being successfully
upgraded and; (v) the receipt of a number of complimentary plaudits
from Key Opinion Leaders in the dental industry.
The CR Foundation ("CR") is considered to be one of the most
influential product reviewers in the USA dental industry. In
September 2011 CR released a report summarising the findings from
its extensive testing and review of new diagnostic equipment
available in the USA. The CR report accorded the CarieScan PRO
('PRO') a number of 'Excellents' in its assessment of the product.
Of all the products reviewed in the report the PRO was the only
product to receive an 'Excellent' in any category and concluded it
'Performed better than all previous products in rigorous
trials'.
Recent plaudits received from Key Opinion Leaders have included
the following.
"If dentists want the best for their patients, then they should
all buy a CarieScan PRO (TM). I do believe that this is the best
product out there."
PROFESSOR EDWARD LYNCH PhD, Lond, MA, BDentSc, TCD, FDSRCSEd,
FADFE, FDSRCSLond Head of Dentistry, University of Warwick, United
Kingdom
"What sets the CarieScan PRO (TM) apart from other units is its
improved sensitivity and specificity with an unmatched accuracy.
This high degree of accuracy means fewer false positives, giving me
more confidence in my diagnosis."
DR MICHAEL MIYASAKI DDS Lecturer, Founder of Principle-Based
Dentistry, Consultant , USA
"I can confidently tell you that among the 11 devices we have in
our caries detection clinic, CarieScan PRO(TM) is the most reliable
and accurate device for detection and monitoring of initial caries
lesion on all surfaces."
PROFESSOR BENNETT T AMAECHI BDS, MS (SATX, USA), PhD, FADI
Associate Professor and Director or Cariology, University of Texas
Health Science Centre at San Antonio, USA
In October 2011 the Company successfully raised GBP1.41 million
of additional equity finance (before costs) through the issue of
70,500,000 new ordinary shares in 3D at a price of 2 pence per
share with new and existing institutional investors (including
certain of the directors of 3D).
In December 2011 a significant enhancement of the CarieScan
PRO's functionality was completed, with a measurement now taking
less than one second to complete (previously five seconds), with
the potential for the most common type of user error now engineered
out of the product and with a much easier to understand read out
incorporated. By the end of February 2011 virtually all of the
products in the field had been fully upgraded.
What has proved frustrating has been the Company's difficulties
in achieving any meaningful level of sales traction in the period
under review. This in part can be attributed to the high levels of
stock held by certain distributors at the beginning of the period,
and the negative impact of the manufacturing defect that was
experienced and fully resolved in the earlier part of the calendar
year. The general economic uncertainty and the Company's reliance
on third party distribution partners, a number of whom have not
performed as we had hoped, have also had an impact and contributed
to the disappointing sales performance in the period. In response
to various initiatives implemented by the Company in the fourth
quarter of 2011 some early signs of improvement have been seen in
the first quarter of 2012. The Company's trading performance has
inevitably had an adverse impact on the Company's cash resources
and as a result the Board is currently considering potential ways
in which to strengthen the Company's balance sheet.
The Board is taking active steps to explore the possibility of
there being a suitable entity, with adequate resources and an
existing international distribution infrastructure, with whom to
partner in the dental sector. Similarly, active steps are being
taken to identify a suitable entity with whom to partner in the
development of the opportunity which the Company's technology
platform provides in the osteoporosis sector. I look forward to
reporting on further developments with these initiatives in due
course.
The financial performance of the business during the period
under review and its position at the end of the period can be
summarised as follows. Turnover for the six months ended 31
December 2011 was GBP68k (six months ended 31 December 2010:
GBP566k). The loss before tax amounted to GBP987k (six months ended
31 December 2010: GBP981k). Whilst the level of revenues in the
period under review is lower than in the comparative period in the
previous year (during which the initial stocking sale was made to
Patterson Dental), the pre-tax loss has been contained at around
the same level. This is a reflection of the cost cutting measures
that have been successfully implemented by management. The reported
level of gross profit in the period under review has dropped to 40%
(six months to 31 December 2010: 72%). However, this has been
adversely impacted by certain one off costs associated with product
upgrades and stock reconciliations and is thus not a true
reflection of the profitability of the product range. Net cash as
at 31 December 2011 was GBP1.07 million (31 December 2010 cash of
GBP2.01 million).
In response to the various obstacles encountered during 2011,
the business revised its marketing and sales approach in the fourth
quarter, effectively resetting the business' commercial activity.
This approach, including the training of the majority of the US
sales force in January 2012, is now beginning to bear fruit. Whilst
still at low volumes the level of initial enquiries, qualified
sales leads and in-market sales by distributors to dentists are all
growing, which is encouraging. I look forward to reporting on
further progress in due course.
David Snow
Interim Non-Executive Chairman
21 March 2012
Group Income Statement (unaudited)
for the six months ended 31 December 2011
6 months
to 6 months to Year ended
31 December 31 December 30 June
2011 2010 2011
Unaudited Unaudited Audited
Note GBP GBP GBP
Revenue 67,739 565,668 714,925
Cost of sales (40,363) (155,996) (257,739)
---------------------------------- ----- ------------ ------------ ------------
Gross profit 27,376 409,672 457,186
---------------------------------- ----- ------------ ------------ ------------
Operating expenses (1,014,699) (1,380,869) (2,891,566)
---------------------------------- ----- ------------ ------------ ------------
Operating loss (987,323) (971,197) (2,434,380)
Finance income - Interest
receivable - 7 96
Finance costs - Loan note
interest - (9,410) (9,410)
---------------------------------- ----- ------------ ------------ ------------
Loss before tax (987,323) (980,600) (2,443,694)
Tax 3 - 25,124 25,124
---------------------------------- ----- ------------ ------------ ------------
Loss and total comprehensive
income (987,323) (955,476) (2,418,570)
---------------------------------- ----- ------------ ------------ ------------
Loss for the period attributable
to equity holders of the
parent (987,323) (955,476) (2,418,570)
Loss per share (p) 4
- Basic and diluted (0.50p) (0.71p) (1.59p)
All of the revenues and loss above is derived from continuing
operations.
There is no other income for this period, and therefore no
separate statement of comprehensive income has been presented.
Group Statement of Changes in Equity (unaudited)
for the six months ended 31 December 2011
Share-based
Share Share Payments Retained
Capital Premium Reserve Earnings Total
GBP GBP GBP GBP GBP
Balance at 30 June 2010 108,004 2,372,420 16,650 (2,352,059) 145,015
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
New share capital subscribed 45,915 2,708,984 - - 2,754,899
Conversion of loan notes to share capital 16,556 728,444 - - 745,000
Expenses of share issue - (451,558) - - (451,558)
Loss and total comprehensive income for the period - - - (955,476) (955,476)
Provision for share-based payments - - 36,260 - 36,260
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
Balance at 31 December 2010 170,475 5,358,290 52,910 (3,307,535) 2,274,140
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
Expenses of share issue - 8,676 - - 8,676
Loss and total comprehensive income for the period - - - (1,463,094) (1,463,094)
Provision for share-based payments - - 15,310 - 15,310
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
Balance at 30 June 2011 170,475 5,366,966 68,220 (4,770,629) 835,032
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
New share capital subscribed 70,500 1,339,500 - - 1,410,000
Expenses of share issue - (106,193) - - (106,193)
Loss and total comprehensive income for the period - - - (987,323) (987,323)
Provision for share-based payments - - 35,051 - 35,051
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
Balance at 31 December 2011 240,975 6,600,273 103,271 (5,757,952) 1,186,567
---------------------------------------------------- -------- ---------- ------------ ------------ ------------
Group Statement of Financial Position (unaudited)
At 31 December 2011
31 December 31 December
2011 2010 30 June 2011
Unaudited Unaudited Audited
Note GBP GBP GBP
Non-current assets
Other intangible assets - - -
Property, plant and equipment 149,103 189,065 173,336
149,103 189,065 173,336
Current assets
Inventories 205,431 62,707 182,310
Trade and other receivables 54,087 291,784 200,889
Cash and cash equivalents 1,071,827 2,016,752 520,145
------------------------------- ----- ------------ ------------ -------------
1,331,345 2,371,243 903,344
Total assets 1,480,448 2,560,308 1,076,680
------------------------------- ----- ------------ ------------ -------------
Current liabilities
Trade and other payables (293,881) (286,168) (241,648)
(293,881) (286,168) (241,648)
Net current assets 1,037,464 2,085,075 661,696
------------------------------- ----- ------------ ------------ -------------
Net assets 1,186,567 2,274,140 835,032
------------------------------- ----- ------------ ------------ -------------
Equity
Share capital 5 240,975 170,475 170,475
Share premium account 6,600,273 5,358,290 5,366,966
Share-based payments reserve 103,271 52,910 68,220
Retained earnings (5,757,952) (3,307,535) (4,770,629)
------------------------------- ----- ------------ ------------ -------------
Total equity 1,186,567 2,274,140 835,032
------------------------------- ----- ------------ ------------ -------------
Group Statement of Cash Flows (unaudited)
For the six months ended 31 December 2011
6 months 6 months
to to Year ended
31 December 31 December 30 June
2011 2010 2011
Unaudited Unaudited Audited
Note GBP GBP GBP
Cash flows from operations
Cash used in operations 6 (752,047) (1,069,964) (2,516,278)
Taxation received - 25,124 25,124
--------------------------------------- ----- ------------ ------------ ------------
Net cash used in operating activities (752,047) (1,044,840) (2,491,154)
--------------------------------------- ----- ------------ ------------ ------------
Investing activities
Interest received - 7 96
Expenditure on intangible assets - - (68,164)
Grants received - - 26,664
Proceeds on disposal of property,
plant and equipment 750 - -
Purchases of property, plant and
equipment (828) (54,202) (62,350)
--------------------------------------- ----- ------------ ------------ ------------
Net cash used in investing activities (78) (54,195) (103,754)
--------------------------------------- ----- ------------ ------------ ------------
Financing activities
Issue of share capital 70,500 62,471 62,471
Cash element of share premium 1,339,500 3,437,428 3,437,428
Issue costs (106,193) (451,558) (442,882)
Interest paid - - (9,410)
Net cash from financing activities 1,303,807 3,048,341 3,047,607
--------------------------------------- ----- ------------ ------------ ------------
Net increase in cash and cash
equivalents 551,682 1,949,306 452,699
Cash and cash equivalents at the
beginning of period 520,145 67,446 67,446
--------------------------------------- ----- ------------ ------------ ------------
Cash and cash equivalents at the
end of period 1,071,827 2,016,752 520,145
Notes to the Interim Financial Information (unaudited)
1. General Information
The condensed financial information for the six months to 31
December 2011 and 31 December 2010 does not constitute statutory
accounts for the purposes of Section 434 of the Companies Act 2006
and has not been audited or reviewed. No statutory accounts for the
period have been delivered to the Registrar of Companies. This
half-yearly financial report constitutes a dissemination
announcement in accordance with Section 6.3 of the Disclosure and
Transparency Rules.
The condensed financial information in respect of the year ended
30 June 2011 has been produced using extracts from the statutory
accounts for this period. Consequently, this does not constitute
the statutory information (as defined in section 434 of the
Companies Act 2006) for the year ended 30 June 2011, which was
audited. The statutory accounts for this period have been filed
with the Registrar of Companies. The auditors' report was
unqualified and did not contain a statement under Sections 498 (2)
or 498 (3) of the Companies Act 2006.
The Interim Report was approved by the Directors on 20th March
2012 and will be available shortly on the Company's website at
www.3ddiagnosticimaging.com.
2. Accounting Policies
Basis of preparation
The interim financial information has been prepared on the
historical cost basis.
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Chairman's Statement. This statement also
includes a summary of the Group's financial position and its cash
flows.
Basis of accounting
The Group's consolidated financial statements for the year ended
30 June 2011 were prepared in accordance with International
Financial Reporting Standards (IFRSs). The half-yearly report for
the period ended 31 December 2011 has been prepared in accordance
with International Accounting Standards ("IAS") 34 "Interim
Financial Reporting".
3. Tax
No deferred tax asset has been recognised in respect of tax
losses due to the uncertainty of future profit streams in the
UK.
4. Loss Per Share and Dividends
No dividends have been paid during the 6 month periods ended 31
December 2011 or 31 December 2010.
IAS 33 "Earnings per share" requires presentation of diluted
earnings / (loss) per share when a company could be called upon to
issue shares that would decrease profit or increase loss per share.
For a loss making company with outstanding share options, loss per
share would only be increased by the exercise of out of money
options. Since it seems appropriate to assume that option holders
would not exercise out of money options, no adjustment has been
made to calculate the diluted loss per share on out of money share
options.
Basic and diluted loss per share are calculated on the loss of
the Group attributable to equity holders of the parent.
6 months to 6 months to Year ended
31 December 31 December 30 June
2011 2010 2011
Unaudited Unaudited Audited
GBP GBP GBP
Loss attributable to equity
holders of the Group (987,323) (955,476) (2,418,570)
Number of shares 000's 000's 000's
Weighted average number of
ordinary shares 198,444,933 134,291,820 152,310,655
Loss per share - basic and
diluted (0.50p) (0.71p) (1.59p)
----------------------------- ------------ ------------ ------------
5. Share Capital
31 December 31 December 30 June
2011 2010 2011
GBP GBP GBP
Authorised
3D Diagnostic Imaging plc.
Ordinary shares of 0.1p each 1,000,000 1,000,000 1,000,000
Allotted, issued and fully paid
3D Diagnostic Imaging plc.
Ordinary shares of 0.1p each 240,975 170,475 170,475
--------------------------------- ------------ ------------ ----------
31 December 31 December 30 June
2011 2010 2011
No. No. No.
Authorised
3D Diagnostic Imaging plc.
Ordinary shares of 0.1p each 1,000,000,000 1,000,000,000 1,000,000,000
Allotted, issued and fully paid
3D Diagnostic Imaging plc.
Ordinary shares of 0.1p each 240,974,824 170,474,824 170,474,824
--------------------------------- -------------- -------------- --------------
The Company has one class of ordinary shares with a par value of
0.1p and which carry no right to fixed income.
6. Notes to the cash Flow Statement
6 months 6 months
to to Year ended
31 December 31 December 30 June
2011 2010 2011
Unaudited Unaudited Audited
GBP GBP GBP
Cash used in operating activities
Operating loss (987,323) (971,197) (2,434,380)
Amortisation of intangible costs - - 68,164
Depreciation of property, plant
and equipment 19,904 18,606 42,483
Loss on sale of property, plant -
and equipment 1,469 -
Share based payment expense 35,051 36,260 51,570
Non cash flow movement in share -
based payment - -
Release of grant - - (26,664)
(Increase)/decrease in inventories (23,121) 93,821 (25,781)
Decrease/(increase) in trade and
other receivables 137,411 (196,025) (95,739)
Increase/(decrease) in trade and
other payables 64,562 (51,429) (95,931)
Cash used in operating activities (752,047) (1,069,964) (2,516,278)
------------------------------------ ------------ ------------ --------------
7. Share Based Payments
The Group issues share-based benefits to employees. These
share-based payments have been measured at their fair value at the
date of grant and the fair value of expected shares is being
expensed to the Income Statement on a straight-line basis over the
vesting period. Fair value has been measured using the Black
Scholes model and adjusted to reflect the most likely share vesting
and exercise pattern. The impact on the accounting periods has
been:
6 months 6 months Year
to to ended
31 December 31 December 30 June
2011 2010 2011
Unaudited Unaudited Audited
GBP GBP GBP
Included in operating expenses 35,051 36,260 51,570
-------------------------------- ------------ ------------ --------
The cumulative provision for share-based payments of GBP103,271
(31 December 2010: GBP52,910) is shown as a reserve in the Group
Statement of Financial Position.
8. Subsequent events
There were no significant events after the balance sheet
date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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