TIDMPXS
RNS Number : 8091J
Provexis PLC
22 December 2015
22 December 2015 Provexis plc
UNAUDITED INTERIM RESULTS FOR SIX MONTHS TO 30 SEPTEMBER
2015
Provexis plc ("Provexis" or the "Company"), the business that
develops and licenses the proprietary, scientifically-proven
Fruitflow(R) heart-health functional food ingredient, announces its
unaudited interim results for the six months ended 30 September
2015.
Key highlights
-- Revenue from profit sharing Alliance for the period GBP41k
(2014: GBP8k), a near fivefold increase from the prior year.
Revenue for the half year to September 2015 exceeds revenue for the
full year to March 2015.
-- Over 45 regional consumer healthcare brands containing
Fruitflow(R) now launched by DSM's customers; DSM's total revenues
for Fruitflow(R) for the year ended 30 September 2015 grew by more
than 33% year on year, reflecting strong interest in the product
and the success of the powder format, further sales growth expected
in the quarter to December 2015.
-- An increasing number of further commercial projects have been
initiated by DSM with prospective customers, including some
prospective customers which are part of global businesses.
-- Significantly enhanced financial terms agreed in June 2015
for the Company's long-term Alliance Agreement with DSM for
Fruitflow(R), backdated to 1 January 2015, increasing the ongoing
profit share payable to the Company.
-- Marketing initiatives for Fruitflow(R) continue:
The new product video for Fruitflow(R) has been viewed by a wide
variety of current and prospective customers, and a further video
is now envisaged;
Fruitflow(R) has been promoted at several major food ingredient
and dietary supplement trade shows;
Fruitflow(R) has also been promoted at some cardiovascular
health events, targeting greater medical advocacy for the
product;
Company is in the process of submitting some of the underlying
scientific studies for Fruitflow(R) for publication in scientific
journals.
-- Encouraging key results released in June 2015 from the
Company's collaboration agreement with the University of Oslo to
undertake further research into the relationship between
Fruitflow(R) and blood pressure regulation. Stage one of the two
stage agreement provided strong evidence that a standard dose of
Fruitflow(R) has the potential to give a clinically relevant
reduction in systolic blood pressure. Ethics approval granted for
the stage two small clinical trial which will commence shortly.
-- Company is in the process of launching a high quality dietary
supplement product containing Fruitflow(R) and Omega-3 which will
be sold initially from the Company's website; expected to provide
an additional income and profit stream.
-- Underlying operating loss* GBP196k (2014: GBP180k) reflecting
planned increase in R&D expenditure for new patents.
-- Cash GBP350k at 30 September (2014: GBP366k) following
fundraising of GBP267k through the online equity crowdfunding
platform PrimaryBid.com in July 2015. The Company remains keen to
minimise dilution to shareholders and it is focussed on moving into
profitability as Fruitflow(R) revenues increase, but while the
Company remains in a loss making position it will need to raise
working capital on occasions, and based on its current level of
cash it will be seeking to raise funds over the next three to nine
months.
*before share based payments of GBP34k (2014: GBP31k), as set
out on the face of the Consolidated Statement of Comprehensive
Income
Provexis Executive Chairman Dawson Buck commented:
"The Company's Alliance partner DSM Nutritional Products has
continued to develop the market actively for Fruitflow(R) in all
global markets, with over 45 regional consumer healthcare brands
now having been launched by DSM customers and with strong growth in
DSM's underlying sales of the product.
The significantly enhanced financial terms agreed in June 2015
with DSM for the Company's long-term Alliance Agreement for
Fruitflow(R) will have a significant positive effect on the
Company's ongoing profit share from the Alliance, an effect which
is evident from the near fivefold increase in revenue for the first
half of the year, relative to the prior year.
The Company and DSM are committed to a number of ongoing
marketing initiatives for Fruitflow(R), seeking to give the product
further global exposure. The Company is very pleased with the
encouraging results from the first stage of the Company's blood
pressure collaboration with the University of Oslo, with strong
evidence that a standard dose of Fruitflow(R) has the potential to
give a clinically relevant reduction in systolic blood pressure.
The Company is in the process of launching a Fruitflow(R) + Omega-3
dietary supplement product which will be sold initially from the
Company's website, and is expected to provide the Company with an
additional income and profit stream.
The first six months of the year have seen a number of very
positive developments for the business, and with the Company's low
operational costs we are well positioned to drive value for
shareholders. We remain positive about the outlook for the business
for the second half of the year and beyond."
-ends-
For further information please contact:
Provexis plc Tel: 07490 391888
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, Finance Director
Cenkos Securities plc Tel: 020 7397 8900
Bobbie Hilliam
Chairman's statement
The Company has had a strong first six months of the year, to
include a significant increase in revenue.
The Company's Alliance partner DSM Nutritional Products has
continued to develop the market actively for the Company's novel,
patented Fruitflow(R) heart-health ingredient in all global
markets, with over 45 regional consumer healthcare brands now
having been launched by DSM customers. DSM's total revenues for
Fruitflow(R) for the year ended 30 September 2015, which are
denominated in Euros, grew strongly by more than 33% year on year,
reflecting strong interest in Fruitflow(R) and the success of the
powder format which is being used in an increasing number of new
product launches.
In June 2015 the Company announced that it had agreed
significantly enhanced financial terms for its long-term Alliance
Agreement with DSM for Fruitflow(R), backdated to 1 January 2015,
which will have a significant positive effect on the Company's
ongoing profit share from the Alliance.
Revenues from the profit sharing Alliance for the period were
GBP41k (2014: GBP8k), a near fivefold increase relative to the
prior year. Revenue for the half year to September 2015 exceeds
revenue for the full year to March 2015.
Underlying operating loss was GBP196k (2014: GBP180k),
reflecting a planned increase in R&D expenditure for new
patents.
Fruitflow(R)
The Company's Alliance partner DSM Nutritional Products has
continued to make good progress marketing Fruitflow(R), with more
than 15 new consumer brands having been launched by DSM customers
over the past year.
An increasing number of further commercial projects have been
initiated by DSM with prospective customers, including some
prospective customers which are part of global businesses, with
good prospects for these projects to be launched as consumer
products. Interest in the technology exists in all major global
markets, and the total value of the prospective sales pipeline is
increasing.
The powder format of Fruitflow(R) which was launched in 2013 has
broad potential applications in tablet, gel capsule and dietary
supplement products, and interest from potential customers for this
format remains strong.
The Company's Alliance Agreement with DSM Nutritional Products
for Fruitflow(R) includes a financial model which is based upon the
division of profits between the two partners on an agreed basis,
linked to certain revenue targets, following the deduction of the
cost of goods and a fixed level of overhead from sales. In June
2015 the Company announced that it had agreed significantly
enhanced financial terms for the Alliance Agreement with DSM, under
which the fixed level of overhead deduction from sales permanently
decreased with effect from 1 January 2015, backdated, thus
increasing the ongoing profit share payable to the Company.
Revenues accruing to the Company from the profit sharing
Alliance for the period were GBP41k (2014: GBP8k), a near fivefold
increase relative to the prior year, with the increase due to (i)
the revised fixed level of overhead deduction from sales, (ii) an
improvement in underlying trading margins and (iii) an increase in
DSM's total revenues for Fruitflow(R). Revenue for the half year to
September 2015 exceeds revenue for the full year to March 2015, and
further sales growth is expected in the quarter to December
2015.
DSM has invested substantial resource into establishing a
commercial scale supply chain for powder manufacturing. DSM's
manufacturing and technical teams remain highly focused on reducing
Fruitflow(R) production costs and as manufacturing volume increases
unit costs will further decrease, enabling more positive margins to
the expected commercial benefit of Fruitflow(R) and the Provexis
business. Further cost reductions will continue to be sought across
all aspects of the supply chain and manufacturing process.
Marketing efforts for Fruitflow(R) have seen the product being
promoted at several major food ingredient and dietary supplement
trade shows. The product has been featured in numerous publications
and it has been the subject of several trade seminars and
presentations, some of which are available to view in the news
section of the Company's website www.provexis.com.
(MORE TO FOLLOW) Dow Jones Newswires
December 22, 2015 02:00 ET (07:00 GMT)
The Company and DSM are keen to secure greater medical advocacy
for the product, particularly with reference to the US Food and
Drug Administration's guidance in May 2014 concerning the use of
low dose Aspirin which remains a strong opportunity for
Fruitflow(R). Fruitflow(R) has accordingly been promoted at some
major cardiovascular health events, including the European Society
of Cardiology's annual congress in London which was attended by
more than 30,000 healthcare professionals.
Marketing initiatives have also included DSM's new product video
for Fruitflow(R) which is primarily targeted at potential business
customers for Fruitflow(R) in the consumer healthcare sector. The
video has been a good opportunity to promote Fruitflow(R) more
widely, and it has been viewed by a wide variety of current and
prospective customers for Fruitflow(R). Further bespoke versions of
the video are likely to be released in due course, and a further
promotional video is now envisaged. The video is available to view
via the Company's website www.provexis.com.
The Company remains in the process of submitting some of the
underlying scientific studies for Fruitflow(R) for publication in
appropriate scientific journals, to include the Company's Aspirin
Comparison Human Trial for Fruitflow(R). Publication of the studies
is expected to be a significant opportunity to promote Fruitflow(R)
further.
Fruitflow(R) and Blood Pressure - Collaboration with University
of Oslo
In November 2014 the Company signed a two stage collaboration
agreement with the University of Oslo to undertake further research
into the relationship between Fruitflow(R) and blood pressure
regulation. Recent work undertaken by the University has shown that
the Company's Fruitflow(R) technology has a potential new
bioactivity, leading to blood pressure lowering effects which would
be of relevance to a large number of consumers and patients with a
wide range of cardiovascular conditions.
The first stage of the collaboration work has now been
completed. First stage work focussed on developing the science,
with major areas including fractionation, testing, bioactivity,
dosage and further IP development.
The key results from this first stage have been very
encouraging, with strong evidence from the laboratory based work
that a standard 150mg dose of Fruitflow(R) in powder format has the
potential to give a clinically relevant reduction in systolic blood
pressure.
The Company and the University are now proceeding with the
second stage of the collaboration work, which is seeing the parties
conduct a small clinical trial by way of a proof of principle
study. Study designs were submitted for ethics approval before
finalisation, with a potential dosage for the study of 150mg
Fruitflow(R) in powder format twice per day. The independent
research ethics committee for the project has approved the clinical
trial, which means that the proof of principle study can
commence.
The University of Oslo's research team is led by Professor Asim
Duttaroy, Group Leader of Chronic Disease at the Faculty of
Medicine and a member of the Company's Scientific Advisory Board.
Professor Duttaroy was the original inventor of Fruitflow(R).
Fruitflow(R) + Omega-3 dietary supplement product
The Company is in the process of launching a high quality
dietary supplement product containing Fruitflow(R) and Omega-3
which will be sold initially from the Company's website on a mail
order basis. The new dietary supplement product is expected to
provide the Company with an additional income and profit
stream.
Fruitflow(R) and Omega-3 have separate, positive EFSA health
claims and the packaging for the product reflects these
strongly.
The first batch of the product has been ordered, with a longer
than first anticipated lead time for this initial batch. The
Company has been working on the marketing, sales and fulfilment
aspects of this new e-commerce channel with the judicious use of
expert outsourced partners, and it has continued to seek to
minimise setup costs.
The Company plans to launch the product as soon as possible on a
separate, dedicated website www.fruitflowplus.com which will be
able to accommodate further potential Fruitflow(R) combination
product derivatives.
The Company is keen to increase the brand awareness and
potential sales of its new dietary supplement product, along with
the brand awareness of Fruitflow(R) more widely, and further sales
channel opportunities are under review.
Intellectual property
The Company is responsible for filing and maintaining patents
and trade marks for Fruitflow(R) as part of the Alliance Agreement
with DSM. We are pursuing a strategy to strengthen the breadth and
duration of our patent coverage to maximise the commercial returns
that can be achieved from the technology. Trade marks were
originally registered in the larger global territories, and new
registrations are typically now sought in additional territories in
response to requests from current or prospective DSM customers for
Fruitflow(R).
In December 2013 British and international patent applications
were filed for the use of Fruitflow(R) in mitigating
exercise-induced inflammation and for promoting recovery from
intense exercise, seeking to enhance further the potential of the
technology in the sports nutrition sector. Patents are being sought
in Europe, the US, China and ten other territories, and this patent
application has now entered the national phase, with potential
patent protection out to December 2033.
The Company's patent application for Fruit Extracts, relating to
part of the production process for Fruitflow(R), is now expected to
proceed to grant in Europe in the coming months, giving patent
protection out to November 2029.
Trade marks for Fruitflow(R) have been registered in the EU, US,
China, Japan and a further eleven international territories, and
trade marks have been applied for in a further nine territories to
support existing and forthcoming consumer brands across all major
global markets.
Crohn's disease intellectual property
The Group continues to maintain the Crohn's disease intellectual
property registered in Provexis (IBD) Limited, a company which is
75% owned by Provexis plc and 25% owned by The University of
Liverpool. The Group continues to investigate further options for
the Crohn's disease project seeking to maximise its value, and in
September 2015 Provexis (IBD) Limited was party to a significant
academic grant application, acting at minimal cost as the
commercial partner. The result of the grant application is expected
in mid 2016, with a successful application likely to lead to an
increase in the value of the Crohn's disease intellectual
property.
Capital structure and funding
In June 2015 the Company joined PrimaryBid.com
(www.primarybid.com), the online platform dedicated to equity
crowdfunding for AIM-listed companies, as a result of which the
Company's existing 10 September 2013 equity financing agreement
with Darwin Strategic Limited was cancelled. In July 2015 the
Company announced that it had raised net proceeds of GBP267k
through the new PrimaryBid.com platform.
The Company is seeking to maximise the commercial returns that
can be achieved from its Fruitflow(R) technology, and the Company's
cost base and its resources continue to be very tightly managed.
The Company remains keen to minimise dilution to shareholders and
it is focussed on moving into profitability as Fruitflow(R)
revenues increase, but while the Company remains in a loss making
position it will need to raise working capital on occasions, and
based on its current level of cash it will be seeking to raise
funds over the next three to nine months.
Outlook
The Company's Alliance partner DSM Nutritional Products has
continued to develop the market actively for Fruitflow(R) in all
global markets, with over 45 regional consumer healthcare brands
now having been launched by DSM customers and with strong growth in
DSM's underlying sales of the product.
The significantly enhanced financial terms agreed in June 2015
with DSM for the Company's long-term Alliance Agreement for
Fruitflow(R) will have a significant positive effect on the
Company's ongoing profit share from the Alliance, an effect which
is evident from the near fivefold increase in revenue for the first
half of the year, relative to the prior year.
The Company and DSM are committed to a number of ongoing
marketing initiatives for Fruitflow(R), seeking to give the product
further global exposure. The Company is very pleased with the
encouraging results from the first stage of the Company's blood
pressure collaboration with the University of Oslo, with strong
evidence that a standard dose of Fruitflow(R) has the potential to
give a clinically relevant reduction in systolic blood pressure.
The Company is in the process of launching a Fruitflow(R) + Omega-3
dietary supplement product which will be sold initially from the
Company's website, and is expected to provide the Company with an
additional income and profit stream.
The first six months of the year have seen a number of very
positive developments for the business, and with the Company's low
operational costs we are well positioned to drive value for
shareholders. We remain positive about the outlook for the business
for the second half of the year and beyond.
Dawson Buck
(MORE TO FOLLOW) Dow Jones Newswires
December 22, 2015 02:00 ET (07:00 GMT)
Chairman
Consolidated statement of
comprehensive income Unaudited Unaudited Audited
Six months ended 30 September
2015 six months six months year
ended ended ended
30 September 30 September 31 March
2015 2014 2015
GBP GBP GBP
Notes
------------------------------- ------ ------------- ------------- ----------
Revenue 40,908 8,261 38,224
Research and development
costs (93,938) (44,952) (180,497)
Administrative costs (177,172) (173,890) (355,964)
Underlying operating loss (196,045) (179,920) (408,862)
Share based payment charges (34,157) (30,661) (89,375)
------------------------------- ------ ------------- ------------- ----------
Loss from operations (230,202) (210,581) (498,237)
Finance income 1,755 3,039 5,077
Loss before taxation (228,447) (207,542) (493,160)
Taxation 6,040 1,500 5,407
Loss and total comprehensive
expense for the period (222,407) (206,042) (487,753)
--------------------------------------- ------------- ------------- ----------
Attributable to:
Owners of the parent (207,557) (181,096) (435,598)
Non-controlling interests (14,850) (24,946) (52,155)
Loss and total comprehensive
expense for the period (222,407) (206,042) (487,753)
--------------------------------------- ------------- ------------- ----------
Loss per share to owners
of the parent
Basic and diluted - pence 3 (0.01) (0.01) (0.03)
------------------------------- ------ ------------- ------------- ----------
All amounts relate to continuing operations.
Consolidated statement of
financial position Unaudited Unaudited Audited
30 September 2015 30 September 30 September 31 March
2015 2014 2015
GBP GBP GBP
----------------------------------- ------------- ------------- -------------
Assets
Current assets
Trade and other receivables 78,654 99,970 53,348
Corporation tax asset 11,448 17,323 21,230
Cash and cash equivalents 350,178 365,572 285,403
Total current assets 440,280 482,865 359,981
----------------------------------- ------------- ------------- -------------
Total assets 440,280 482,865 359,981
----------------------------------- ------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables (115,230) (85,295) (114,081)
Total current liabilities (115,230) (85,295) (114,081)
----------------------------------- ------------- ------------- -------------
Net current assets 325,050 397,570 245,900
----------------------------------- ------------- ------------- -------------
Total liabilities (115,230) (85,295) (114,081)
----------------------------------- ------------- ------------- -------------
Total net assets 325,050 397,570 245,900
----------------------------------- ------------- ------------- -------------
Capital and reserves attributable
to
owners of the parent company
Share capital 1,647,068 1,561,816 1,584,846
Share premium reserve 16,503,221 16,222,145 16,298,043
Warrant reserve 26,200 26,200 26,200
Merger reserve 6,599,174 6,599,174 6,599,174
Retained earnings (24,060,136) (23,663,347) (23,886,736)
----------------------------------- ------------- ------------- -------------
715,527 745,988 621,527
Non-controlling interest (390,477) (348,418) (375,627)
Total equity 325,050 397,570 245,900
----------------------------------- ------------- ------------- -------------
Consolidated statement of cash
flows Unaudited Unaudited Audited
30 September 2015 six months six months Year
ended ended ended
30 September 30 September 31 March
2015 2014 2015
GBP GBP GBP
Cash flows from operating activities
Loss after tax (222,407) (206,042) (487,753)
Net finance income (1,755) (3,039) (5,077)
Taxation (6,040) (1,500) (5,407)
Share-based payment charge 34,157 30,661 89,375
Changes in trade and other
receivables (25,336) 5,161 (1,783)
Changes in trade and other
payables 1,149 (22,917) 5,869
Total cash outflow from operations (220,232) (197,676) (404,776)
-------------------------------------- ------------- ------------- ----------
Tax credits received 15,822 - -
Total cash outflow from operating
activities (204,410) (197,676) (404,776)
-------------------------------------- ------------- ------------- ----------
Cash flow from investing activities
Interest received 1,785 3,018 4,949
Total cash inflow from investing
activities 1,785 3,018 4,949
-------------------------------------- ------------- ------------- ----------
Cash flow from financing activities
Proceeds from issue of share
capital 267,400 45,403 170,403
Total cash inflow from financing
activities 267,400 45,403 170,403
-------------------------------------- ------------- ------------- ----------
Net increase / (decrease) in
cash and cash equivalents 64,775 (149,255) (229,424)
Opening cash and cash equivalents 285,403 514,827 514,827
Closing cash and cash equivalents 350,178 365,572 285,403
-------------------------------------- ------------- ------------- ----------
Consolidated
statement of
changes in Total
equity Share Share Warrant Merger Retained equity Non- Total
30 September attributable
2015 to owners controlling
capital premium reserve reserve earnings of interests equity
the
parent
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
At 31 March
2014 1,554,816 16,183,870 26,200 6,599,174 (23,505,513) 858,547 (323,472) 535,075
Share-based
charges - - - - 30,661 30,661 - 30,661
Equity
financing
facility
fee - charge
for period - - - - (7,399) (7,399) - (7,399)
Issue of
shares
- equity
financing
facility
29 April 2014 7,000 38,403 - - - 45,403 - 45,403
Equity
financing
facility -
warrants
charged to
share
premium
account - (128) - - - (128) - (128)
Total
comprehensive
expense for
the period - - - - (181,096) (181,096) (24,946) (206,042)
At 30
September
2014 1,561,816 16,222,145 26,200 6,599,174 (23,663,347) 745,988 (348,418) 397,570
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 58,714 58,714 - 58,714
Equity
financing
facility
(MORE TO FOLLOW) Dow Jones Newswires
December 22, 2015 02:00 ET (07:00 GMT)
fee - charge
for period - - - - (27,601) (27,601) - (27,601)
Issue of
shares
- equity
financing
facility
15 December
2014 23,030 101,970 - - - 125,000 - 125,000
Equity
financing
facility -
warrants
charged to
share
premium
account - (26,072) - - - (26,072) - (26,072)
Total
comprehensive
expense for
the period - - - - (254,502) (254,502) (27,209) (281,711)
At 31 March
2015 1,584,846 16,298,043 26,200 6,599,174 (23,886,736) 621,527 (375,627) 245,900
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
Share-based
charges - - - - 34,157 34,157 - 34,157
Issue of
shares
- PrimaryBid
placing 9
July
2015 62,222 205,178 - - - 267,400 - 267,400
Total
comprehensive
expense for
the period - - - - (207,557) (207,557) (14,850) (222,407)
At 30
September
2015 1,647,068 16,503,221 26,200 6,599,174 (24,060,136) 715,527 (390,477) 325,050
--------------- ---------- ----------- -------- ---------- ------------- ------------- ------------- ----------
1. General information, basis of preparation and accounting
policies
General information
Provexis plc is a public limited company incorporated and
domiciled in the United Kingdom (registration number 05102907). The
address of the registered office is Prospect House, 58 Queens Road,
Reading, Berkshire RG1 4RP, UK.
The main activities of the Group are those of developing and
licensing the proprietary, scientifically-proven Fruitflow(R)
heart-health functional food ingredient.
Basis of preparation
This condensed financial information has been prepared using
accounting policies consistent with International Financial
Reporting Standards in the European Union (IFRS).
The same accounting policies, presentation and methods of
computation are followed in this condensed financial information as
are applied in the Group's latest annual audited financial
statements, except as set out below. While the financial figures
included in this half-yearly report have been computed in
accordance with IFRS applicable to interim periods, this
half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in
IAS 34.
Use of non-GAAP profit measure - underlying operating profit
The directors believe that the operating loss before share based
payments measure provides additional useful information for
shareholders on underlying trends and performance. This measure is
used for internal performance analysis. Underlying operating loss
is not defined by IFRS and therefore may not be directly comparable
with other companies' adjusted profit measures. It is not intended
to be a substitute for, or superior to IFRS measurements of
profit.
The interim financial information does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006 and
has been neither audited nor reviewed by the Company's auditors
Moore Stephens LLP pursuant to guidance issued by the Auditing
Practices Board.
The results for the year ended 31 March 2015 are not statutory
accounts. The statutory accounts for the last year ended 31 March
2015 were approved by the Board on 3 September 2015 and are filed
at Companies House. The report of the auditors on those accounts
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498 of the
Companies Act 2006.
The interim report for the six months ended 30 September 2015
can be downloaded from the Company's website www.provexis.com.
Further copies of the interim report and copies of the 2015 annual
report and accounts can be obtained by writing to the Company
Secretary, Provexis plc, Prospect House, 58 Queens Road, Reading,
Berkshire RG1 4RP, UK.
This announcement was approved by the Board of Provexis plc for
release on 22 December 2015.
Going concern
The Group made a loss for the period from operations of
GBP222,407 (2014: GBP206,042) and expects to make a further loss
during the remainder of the year ending 31 March 2016. The total
cash outflow from operations in the period was GBP220,232 (2014:
GBP197,676).
For the year ended 31 March 2015 the Group made a loss from
operations of GBP487,753 (2014: GBP998,264). The total cash outflow
from operations in the year ended 31 March 2015 was GBP404,776
(2014: GBP780,928).
At 30 September 2015 the Group had cash balances of GBP350,178
(2014: GBP365,572).
On 4 June 2015 the Group announced that it had agreed
significantly enhanced financial terms for its long-term Alliance
Agreement with DSM, involving a reduction in the fixed level of
overhead deduction from sales which permanently decreased with
effect from 1 January 2015, backdated, thus increasing the profit
share payable to the Company.
On 4 June 2015 the Group also announced that it had joined
PrimaryBid.com (www.primarybid.com), an online platform dedicated
to equity crowdfunding for AIM-listed companies. On 3 July 2015 the
Group announced that it had raised net proceeds of GBP267,400 via a
placing with investors using the Primarybid.com platform.
The directors have prepared projected cash flow information for
a period of more than twelve months from the date of approval of
these financial statements and have reviewed this information as at
the date of these financial statements.
The Group has access to future equity financings, either through
the Group's existing PrimaryBid.com platform or through a separate
equity fundraising with the Company's shareholders, as potential
additional sources of funding.
The Company remains keen to minimise dilution to shareholders
and it is focussed on moving into profitability as Fruitflow(R)
revenues increase, but while the Company remains in a loss making
position it will need to raise working capital on occasions, and
based on its current level of cash it will be seeking to raise
funds over the next three to nine months.
Based on the level of existing cash, projected income and
expenditure, and including the potential additional sources of
equity funding, the directors are of the opinion that at 22
December 2015 the Company and the Group have adequate resources to
continue in business for the foreseeable future, and accordingly
the going concern basis has been used in preparing the financial
statements.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 March 2015, as
described in those annual financial statements.
2. Segmental reporting
The Directors have determined that only one operating segment
exists under the terms of International Financial Reporting
Standard 8 'Operating Segments', as the Group is organised and
operates as a single business unit.
3. Earnings per share
Basic earnings per share amounts are calculated by dividing the
profit attributable to owners of the parent by the weighted average
number of ordinary shares in issue during the period.
Diluted earnings per share amounts are calculated by dividing
the profit attributable to owners of the parent by the weighted
average number of ordinary shares in issue during the period,
adjusted for the effects of potentially dilutive options. The
dilutive effect is calculated on the full exercise of all
potentially dilutive ordinary share options granted by the
Group.
There were 118,617,620 share options in issue at 30 September
2015 (2014: 110,640,510) and 10,000,000 warrants (2014: 10,000,000)
in issue that are currently anti-dilutive and have therefore been
excluded from the calculations of the diluted loss per share.
Unaudited Unaudited Audited
six months six months Year
ended ended ended
30 September 30 September 31 March
2015 2014 2015
Loss for the period attributable
to owners of the parent
- GBP (207,557) (181,096) (435,598)
Weighted average number
of shares 1,613,066,952 1,560,706,324 1,567,947,710
Basic and diluted loss
per share - pence (0.01) (0.01) (0.03)
---------------------------------- -------------- -------------- --------------
4. Share capital
On 3 July 2015 the Group announced that it had raised net
proceeds of GBP267,400 via the placing of 62,222,223 new ordinary
shares of 0.1p each at a gross 0.45p per share ('the placing
shares') with investors using the Primarybid.com platform. The
placing shares were admitted to AIM on 9 July 2015.
Further details of the PrimaryBid.com agreement is available to
download from the announcements section of the Company's website
www.provexis.com.
At 22 December 2015, the date of this announcement, the
Company's issued share capital comprises 1,647,068,167 ordinary
shares with voting rights. The Company does not hold any shares in
treasury.
5. Cautionary statement
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