Bioquell PLC Pre Close Update (1952C)
January 15 2015 - 2:00AM
UK Regulatory
TIDMBQE
RNS Number : 1952C
Bioquell PLC
15 January 2015
15 January, 2015
Bioquell PLC
Pre-close statement
Bioquell PLC ("Bioquell") (LSE symbol: BQE) - provider of
specialist microbiological control technologies to the
international Healthcare, Life Sciences & Defence markets; and
specialist testing services in the UK via its TRaC division, today
announces an update on its trading performance, and details of
certain exceptional non-cash impairment charges, prior to entering
the closed period ahead of the preliminary results for the year to
31 December 2014.
Trading remained broadly consistent with that disclosed in the
Interim Management Statement on 19 November, 2014.
We estimate that revenues for the year ended 31 December, 2014
will be approximately GBP45.3 million (2013: GBP44.6 million), an
increase in the year of some 1.5%. This estimate comprises GBP27.3m
for the Bio division (2013: GBP27.9m) and GBP18.0m for the TRaC
division (2014: GBP16.8m). Pre-exceptional earnings before interest
and tax are expected to be in line with market expectations.
The Company had net cash of GBP1.1m at the year end.
The Board has carried out a review of BioxyQuell, the Group's
wound-care technology which is currently in early stage trials.
While these trials continue, the speed of adoption of the
technology has been slower than expected to date and accordingly
the Board has determined that the capitalised value of the
BioxyQuell technology of GBP1.9m should be impaired.
At the same time, the Board has reviewed all other capitalised
product development costs in the Bio division in light of the
ongoing updating of the Division's product range, which will see
the discontinuance of certain products and their replacement by new
and improved ones later this year. This review has identified
capitalised development costs of GBP0.8m which relate to products
which are to be discontinued, and therefore this amount will be
recognised as an exceptional impairment charge in the 2014
accounts.
As noted at the time of our interim results, the Board has also
conducted a review of the Bio division's capitalised patent costs.
This review has now concluded and it has been decided to focus on
maintenance of a narrower group of core patents associated with the
Division's core technology, which will result in ongoing cost
savings, and to abandon certain other patents. In consequence, an
impairment charge of GBP1.2m will be taken against the value of
capitalised patents in the 2014 accounts.
The aggregate pre-tax exceptional non-cash impairment charge of
GBP3.9m will be offset by a deferred tax credit of GBP0.8m,
resulting in a net after tax charge of approximately GBP3.1m.
The preliminary results for the year ended 31 December, 2014
will be announced on 18 March, 2015.
- Ends -
Enquiries
Nigel Keen (Chairman) Bioquell PLC 01264 835 900
Nick Adams (Chief Executive)
Michael Roller (Finance Director)
Notes to Editors
-- Bioquell is a UK-headquartered, international technology
company with two divisions:
o Bio (www.bioquell.com) which sells specialist biological
contamination control products and services into the Healthcare,
Life Sciences and Defence sectors, with most of its revenues
generated from overseas customers; and
o TRaC (www.tracglobal.com) which provides specialist Testing,
Regulatory and Compliance services - including EMC (electromagnetic
compatibility), environmental, safety, ATEX (explosive atmospheres)
radio and telecoms testing - principally to UK corporates.
-- Bioquell's bio-contamination control technology is
principally based around hydrogen peroxide vapour (HPV) - which is
highly efficacious at eradicating micro-organisms such as bacteria
and viruses at room temperature - and is subsequently broken down
using specialist catalysts to water vapour and oxygen (hence an
extremely 'green' technology) at the end of the bio-decontamination
process.
-- For the last three years Bioquell has invested substantial
sums in developing new products - comprising rental, service and
consumables - which have been designed to increase the proportion
of the Group's recurring revenues (cf. capital equipment
sales).
-- Bioquell's bio-contamination control technology:
o is used by bio-pharmaceutical, biotechnology and research
institutions to provide sterile equipment and/or sterile
facilities;
o is used to eradicate "superbugs" from hospitals including
Clostridium difficile and carbapenemase producing
Enterobacteriaceae (CPE) - sometimes referred to as
carbapenem-resistant Enterobacteriaceae (CRE). Independent
scientific research from a team at Johns Hopkins, one of America's
top hospitals, has demonstrated that 'bioquelling' hospital
equipment and facilities resulted in a 64% reduction in the rate of
hospital acquired infection;
o is used to provide single rooms to hospitals (via its ICE-pod
rental service) which currently only have open, multi-bed
"Nightingale" ward structures
o has been incorporated in a wound-care product - BioxyQuell -
which has received regulatory approval for use on chronic wounds in
the European Union; and
-- Bioquell currently has overseas operations in the USA,
France, Ireland, Singapore and China.
TRaC sells its specialist services to the product development
departments of a broad range of companies, principally based in the
UK, with a particular focus on organisations operating in the
aerospace, defence and telecoms sectors. TRaC also has a small team
of technical experts located in China.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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