TIDMRXB
RNS Number : 2332O
Rex Bionics PLC
05 August 2014
Rex Bionics Plc
("Rex Bionics" or the "Company")
Maiden Interim Results for the six months ended 31 May 2014
5 August 2014, Rex Bionics Plc (RXB) (formerly Union MedTech
Plc) the AIM-listed developer and manufacturer of hands-free
robotic exoskeletons for use by wheelchair users, today announces
its maiden unaudited results for the six months ended 31 May
2014.
Highlights:
Financial:
-- Transfer of listing from ISDX Growth Market to AIM in May
2014, with the successful completion of an IPO raising GBP10
million (gross)
-- Completion of the acquisition of Rex Bionics Ltd, for an
all-share consideration, and simultaneous change of parent company
name from Union MedTech Plc to Rex Bionics Plc
-- Total comprehensive loss for the period GBP1.246 million (31 May 2013: GBP0.075 million)
-- Period-end cash reserves GBP8.777 million (31 May 2013: GBP0.302 million)
Operational:
-- International commercialisation activities accelerating - UK
sales and marketing team now in place
-- Rex Bionics New Zealand operations transferred to new, larger
facility in Auckland as Company scales up manufacturing
-- Patents covering REX technology granted in China and Japan
-- Richard Little, co-inventor of REX technology, joined the
Board as Chief Technology Officer immediately following the IPO.
Board further strengthened at same time by appointment of John
Plimmer and Victoria Provis as Non-Executive Directors
-- Appointment of VP International Sales and Marketing
Post period-end highlights:
-- Appointment of Crispin Simon, formerly CEO of Biocompatibles
International Plc ("Biocompatibles"), as Chief Executive Officer.
Jeremy Curnock Cook to become Deputy Chairman - see separate
announcement issued today
-- Appointment of Tracey White, previously General Manager of
Siemens Healthcare, as General Manager of Rex Bionics Ltd
-- Appointment of Michael Heath, most recently at Bombardier
manufacturing aircraft fuselages, as Director of Manufacturing in
Auckland
-- Control System patent accepted for grant in New Zealand
Commenting on the announcement, David Macfarlane, Chairman of
the Board, said: "The successful completion of Rex Bionics'
transfer to AIM in early May and the simultaneous completion of our
acquisition of Rex Bionics Ltd was a transformational event for the
Company. The funds raised have enabled us to advance our
commercialisation strategy and commence the scale-up of
manufacturing plans. We have already seen an exceptional level of
interest internationally in the REX technology and I am delighted
to see this being translated into the advanced discussions we are
having regarding the first sales of REX Rehab since the time of the
IPO. Based on the progress achieved to date, I believe we have good
reasons to be very optimistic about the future.
"At this time I would again like to welcome Crispin to the
Company as CEO in October and I would also like to take this
opportunity to thank Jeremy Curnock Cook once again for his
leadership and the commitment he has made to the Company to date. I
am delighted to be working with both of them as we embark upon the
next phase of our growth and continue our efforts to bring the
unique benefits of REX to an increasing number of wheelchair users
around the world."
For more information, please contact:
Rex Bionics Plc
Jeremy Curnock Cook, Chief Executive Officer
+44 (0)7802 268634
Peter Worrall, Chief Financial Officer
+44 (0)1428 645416
Oriel Securities Limited (NOMAD)
Juliet Thompson/ Jonathan Senior/ Giles Balleny
+44 (0) 20 7710 7600
Consilium Strategic Communications
Mary-Jane Elliott / Emma Thompson / Jessica Hodgson / Lindsey
Neville
+44 (0) 20 3709 5708
Notes for Editors:
About Rex Bionics
Rex Bionics (AIM: RXB) is an AIM-listed developer and
manufacturer of hands-free robotic exoskeletons for use by people
with mobility impairments. Founded in Auckland, New Zealand by two
robotics engineers with first-hand experience of wheelchair users
and their needs, Rex Bionics focuses on producing products designed
to enable wheelchair users to stand and walk autonomously without
the need for crutches or supports and is the only company to mass
produce hands-free walking devices for wheelchair users. Rex
Bionics' marketed products: REX Rehab and REX Personal, can be used
by people with complete spinal cord injury, but also by a much
broader potential customer base, including people with multiple
sclerosis and muscular dystrophy. In May 2014, Rex Bionics joined
AIM with a fundraising of GBP10 million (gross) to scale up
production, distribution and marketing internationally, in order to
support growing demand for both REX products as well as developing
the next generation of REX devices, REX 3.
For more information please visit, www.rexbionics.com
Chairman's statement
Overview
Fundraising and transfer to AIM Market
Rex Bionics completed an IPO on AIM on 8 May 2014, at the same
time completing the acquisition of Rex Bionics Ltd and changing its
name from Union MedTech Plc to Rex Bionics Plc. The Company's
objective of raising GBP10 million before expenses at a price of
GBP1.80 per share and welcoming a number of new investors to the
share register was successfully achieved. As a consequence of the
move to AIM, the Company's previous listing on the ISDX Growth
Market was withdrawn.
The new funding has provided the Company with the resources to
properly support the international commercialisation of the REX
technology and scale-up of manufacturing in order to allow for the
further development of the Rex Bionics business.
The market opportunity
Rex Bionics' Board and management view the commercialisation of
the Company's hands-free robotic exoskeleton, which they believe
offers unique advantages to wheelchair users, as a key value
inflection point for the Company. With some 2.8 million wheelchair
users in the US alone, and numbers in Europe reported to be
similar, the Company believes there is a significant untapped
market opportunity for the REX technology.
Operational Review
Following the IPO, a number of important steps required to
commercialise the REX internationally are now underway.
Manufacturing and R&D
The Company's manufacturing and R&D operations moved earlier
than planned to larger premises near Auckland in July. The move to
the new facilities, whilst creating a temporary disruption to
current manufacturing output, will enable the Company to expand
operations to meet its volume production requirements over the next
three years without further disruption to manufacture. As part of
the move, the Company is implementing sophisticated new enterprise
resource planning, production, quality systems and procedures to
optimise manufacturing efficiency and ensure regulatory compliance.
In addition, the Company is implementing a cost reduction programme
to reduce REX cost of goods progressively over time.
A number of manufacturing positions in Auckland have been filled
since the IPO as production begins to gear up, and recruitment of
senior management and key staff across a number of different
functions continues. A key hire has been the appointment of Michael
Heath as Director of Manufacturing. Michael has extensive
experience of working in high technology engineering industries,
including robotics, and his most recent role was at Bombardier in
Belfast where he was responsible for the manufacture of aircraft
fuselages.
New hires have also been made in the research and development
team as the development programme for the next generation REX 3
advances.
Sales and Marketing
In February 2014, Rex Bionics appointed Debra Leeves, an
experienced sales & marketing executive with a background in
pharmaceuticals and medical technology, as VP, International Sales
& Marketing. Debra is based in the Company's European
Headquarters in Thame, Oxfordshire. Tracey White joined the Company
in July 2014 as General Manager of Rex Bionics Ltd, the Southern
Hemisphere operating company, and will be based in Auckland. Tracey
was most recently General Manager of Siemens Healthcare in New
Zealand and has a background in sales & marketing, as well as
finance and general management.
A small sales and training team based in the UK was recruited
immediately following the IPO and is actively promoting REX to
rehabilitation centres and other potential customers, with highly
encouraging feedback from early outreach. The Company also expects
to establish a sales and marketing presence in Australia/New
Zealand, and eventually Asia, and intends to build a regional sales
and marketing operation in the US, with an initial focus on
South-Eastern US. The Company expects to make further announcements
on progress in those markets in the near future.
Since joining the AIM market, the Company has been focused on
raising the profile and awareness of REX, building increasing
momentum through demonstrations both in rehabilitation settings and
to potential private customers. An active programme has been
initiated to build market awareness using social media and Key
Opinion Leaders to complement the high levels of media interest in
the REX technology with extensive coverage across TV, print and
social media. Of particular note was the choice of REX to feature
in the BBC2 Horizon programme that launched the GBP10 million
Longitude 2014 prize, as an example of an approach within the
paralysis category to address some of the challenges faced by
people with long-term disabilities.
REX has also been demonstrated to users, clinicians and payers
at a number of prestigious conferences and trade shows around the
world, including the OTWorld Exhibition in Leipzig, the
Neurological Rehabilitation Conference in London, and most recently
at the Hamlyn Symposium on Medical Robots at Imperial College
chaired by Lord Darzi of Denham.
Advanced discussions are ongoing with several parties for the
purchase of a REX device and the first firm orders are anticipated
in the near future.
Board Appointments
Richard Little, co-founder of Rex Bionics Ltd and co-inventor of
REX, joined the Board as Chief Technology Officer following the IPO
and completion of the acquisition.
Two new Non-Executive Directors, John Plimmer and Victoria
Provis, joined the Board at the same time, both of whom bring
highly relevant skills and experience to Rex Bionics. John, who
leads the Audit Committee, is a private investor in, and board
member of, a number of companies across different industry sectors
following a long and successful career in investment banking and
private equity fund management, initially with Hambros Bank and
more recently with JZ International. Victoria, who chairs the
Remuneration Committee, brings over 30 years' experience in
corporate communications, strategic consultancy and, most recently
human resources, having been a partner at Odgers for over 16 years
until 2011. She now holds a number of Non-Executive positions,
primarily in the public sector.
The Company announced via a separate press release issued today
that Crispin Simon will join the Board as Chief Executive Officer
in early October this year. On the same date, Jeremy Curnock Cook,
currently Chief Executive Officer, will assume the role of Deputy
Chairman.
Crispin has a 25-year track record in industry with significant
success across a range of sub-sectors of healthcare including
medical technology and medical devices. Following a career which
included working at NM Rothschild, McKinsey, Rexam and Smith &
Nephew, where he was latterly President of the Endoscopy Division,
Crispin Simon was Chief Executive of Biocompatibles until its sale
to BTG Plc in early 2011. At Biocompatibles, he led a team that
developed three medical products businesses: the Cardiovascular
Stent business, sold to Abbott Laboratories for GBP145 million; the
Contact Lens business, sold to Cooper Industries for GBP80 million,
and the drug-eluting bead business, which was sold as part of the
disposal of the whole company to BTG Plc for GBP165 million. In
addition, GBP123 million in cash was returned to shareholders.
Intellectual Property
The importance of establishing and maintaining strong
intellectual property protection for products, particularly in
high-tech sectors such as the international medical technology
industry, is well understood. The Company maintains a strong patent
estate and during the period achieved patent grants for its key REX
patent families in two important potential markets for REX
products, China and Japan, in addition to having a Control System
patent accepted for grant in New Zealand.
Accounting Period
The Company's intention is to change its accounting reference
date from 30 November to 31 March during the current accounting
period in order to coincide with the Rex Bionics Ltd accounting
reference date. This will be accomplished by extending the
Company's current accounting period from 12 to 16 months and
announcing a second set of interim results, covering the 12 month
period to 30 November 2014, in February 2015. Final results
covering the 16-month period from 1 December 2013 to 31 March 2015
are expected to be announced around the end of May 2015.
Summary and Outlook
Following the successful fundraising in May this year, the
Company now has the financial resources to support the
international commercialisation of the REX technology and the
further development of the Rex Bionics business upon firm
foundations. The funds raised from a number of new and existing
major institutional investors have enabled the Company to put in
place the personnel and infrastructure necessary to achieve the
short term strategic objectives for the business.
REX is a remarkable piece of technology which in our view offers
the potential to completely transform the lives of wheelchair users
across the world. Support for that view has been demonstrated by
the exceptional level of media interest the product has generated
recently.
I would like to welcome Crispin Simon to the Rex Bionics team
where his expertise will be invaluable in helping to take the
Company to the next phase of its growth, and to thank Jeremy
Curnock Cook for his leadership over the past year.
The next stage of development will see the Company focusing on
bringing the benefits of REX to those people who can most benefit
from it, both through our focus on the rehabilitation market and in
outreach to private individuals. We will also seek to apply the
intelligence we gain from this into developing the best possible
next generation REX. We would like to thank our committed staff and
shareholders for making this possible and look forward to the next
part of this journey.
David Macfarlane
Chairman
5 August 2014
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
for the six months ended 31 May 2014
6 Months 6 Months Year ended
to to 30 November
Notes 31 May 31 May 2013
2014 2013
GBP'000 GBP'000 GBP'000
Revenue
Other income 176 - -
Operating expenses
Administrative expenses (387) (61) (75)
Legal and professional (1,006) (14) (407)
Operating loss (1,217) (75) (482)
Other gains and losses (29) - 2
Loss on ordinary activities
before taxation (1,246) (75) (480)
Taxation - -
Loss for the period and
total comprehensive income (1,246) (75) (480)
Basic and diluted loss
per share (pence):
From continuing and total
operations 4 (46.8) (22.1) (141.4)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
As at As at As at
31 May 31 May 30 November
Notes 2014 2013 2013
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 6 10,024 - -
Property, plant and equipment 98 - -
Intangible assets 235 - -
10,357 - -
Current Assets
Inventory 150 - -
Trade and other receivables 146 14 10
Cash and cash equivalents 8,777 302 174
9,073 316 184
Total assets 19,430 316 184
Equity and liabilities
Equity
Share capital 5 14,289 340 340
Share premium 5 5,555 1,247 1,247
Merger relief reserve 1,780 - -
Equity reserve 92 92 92
Retained losses (3,131) (1,480) (1,885)
18,585 199 (206)
Current Liabilities
Trade and other payables 845 117 390
845 117 390
Total equity and liabilities 19,430 316 184
As at 31 May 2014
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
for the six months ended 31 May 2014
Share Share Merger Equity Retained Total
capital premium relief reserve losses
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 December
2012 340 1,247 - 92 (1.405) 274
Loss for the period - - - - (75) (75)
Balance at 31 May 2013 340 1,247 - 92 (1,480) 199
----------------- --------- ---------- --------- --------- --------
Share based payment - - - - - -
Loss for the year - - - - (405) (405)
Balance at 30 November
2013 340 1,247 - 92 (1,885) (206)
----------------- --------- ---------- --------- --------- --------
Issuance of shares 13,949 6,088 - - - 20,037
Shares on acquisition - (1,780) 1,780 - - -
Loss for the period - - - - (1,246) (1,246)
Balance at 31 May 2014 14,289 5,555 1,780 92 (3,131) 18,585
================= ========= ========== ========= ========= ========
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 31 May 2014
6 Months 6 Months Year ended
to 31 May to 31 May 30 November
2014 2013 2013
GBP'000 GBP'000 GBP'000
Loss before taxation (1,246) (75) (480)
Unrealised loss on foreign exchange 21
Depreciation 2 - -
(Increase) in receivables (135) (10) (6)
Increase in payables 452 5 278
Cash outflow from operations (906) (80) (208)
Interest paid - - -
----------- ----------- -------------
Net cash outflow from operating
activities (906) (80) (208)
----------- ----------- -------------
Cash flow from investing activities:
Property, plant equipment at cost (100) - -
----------- ----------- -------------
Net cash outflow from investing (100) - -
activities
----------- ----------- -------------
Cash flow from financing activities:
Proceeds of share issues 10,000 - -
Share issuance costs (391) - -
Net cash from financing activities 9,609 - -
----------- ----------- -------------
Net increase / (decrease) in cash
and cash equivalents 8,603 (80) (208)
Cash and cash equivalents at beginning
of period 174 382 382
Cash and cash equivalents at end
of period 8,777 302 174
----------- ----------- -------------
Accounting Policies
Interim financial statements for the six months ended 31 May
2014
1. Basis of preparation and accounting policies
The financial information for the six months ended 31 May 2014
included in this condensed interim report comprises the condensed
consolidated statement of comprehensive income, the condensed
consolidated statement of financial position, the condensed
consolidated statement of cash flows, the condensed consolidated
statement of changes in equity and the related notes 4-8.
These interim financial statements have not been audited nor
have they been reviewed by the auditors under ISRE 2410 of the
Auditing Practices Board. The financial information set out in this
report does not constitute statutory accounts as defined by the
Companies Act 2006. The comparative figures for the year ended 30
November 2013 were derived from the statutory accounts for that
year which have been delivered to the Registrar of Companies. Those
accounts received an unqualified audit report which did not contain
statements under sections 498(2) or (3) (accounting records or
returns inadequate, accounts not agreeing with records and returns
or failure to obtain necessary information and explanations) of the
Companies Act 2006.
The interim financial statements have been prepared on the basis
of the accounting policies set out in the 30 November 2013
financial statements of Rex Bionics Plc, formerly Union MedTech
plc, and on a going concern basis. They are presented in sterling
which is also the functional currency of the parent company. They
do not include all of the information required in annual financial
statements in accordance with IFRS and should be read in
conjunction with the consolidated financial statements of the Group
for the year ended 30 November 2013.
Rex Bionics Plc is the Group's ultimate parent company. It is a
public listed company and is domiciled in the United Kingdom. The
Company changed its name from Union MedTech plc to Rex Bionics plc
On 8 May 2014.
The Company's registered office address is 7 Swallow Place,
London W1B 2AG, and its principal place of business is Thame Park,
Thame Park Road, Oxfordshire, United Kingdom OX9 3PU. Rex Bionics
Plc's shares are listed on the Alternative Investment Market
(AIM).
2. Basis of consolidation
The Group's condensed consolidated financial statements
incorporate the financial statements of Rex Bionics Plc (the
"Company") and entities controlled by the Company (its
subsidiaries). Subsidiaries are entities over which the Group has
the power to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting
rights. The existence and effect of potential voting rights that
are currently exercisable or convertible are considered when
assessing whether the Group controls another entity.
The consolidation of the Group in the 6 month period up to the
31 May 2014 includes one month of trading from the Company's
wholly-owned New Zealand subsidiary Rex Bionics Limited, which was
acquired by the Company on 8 May 2014.
Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from
the date that control ceases.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Profits and
losses resulting from inter-company transactions that are
recognised in assets are also eliminated. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the Group.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
3. Business combinations
The acquisition of subsidiaries is accounted for using the
acquisition method under IFRS 3. The cost of the acquisition is
measured at the aggregate of the fair values, at the date of
exchange, of assets given, liabilities incurred or assumed, and
equity instruments issued by the Group in exchange for control of
the acquiree, plus any costs directly attributable to the business
combination. The acquiree's identifiable assets, liabilities and
contingent liabilities that meet the conditions for recognition
under IFRS 3 are recognised at their fair value at the acquisition
date, except for non-current assets (or disposal groups) that are
classified as held for resale in accordance with IFRS 5 Non-current
Assets Held for Sale and Discontinued Operations, which are
recognised and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset and
initially measured at cost, being the excess of the cost of the
business combination over the Group's interest in the net fair
value of the identifiable assets, liabilities and contingent
liabilities recognised. If, after reassessment, the Group's
interest in the net fair value of the acquirer's identifiable
assets, liabilities and contingent liabilities exceed the cost of
the business combination, the excess is recognised immediately in
the income statement.
4. Loss per share
Six months Six months Year ended
ended 31 ended 31 30 November
May 2014 May 2013 2013
GBP'000 GBP'000 GBP'000
----------- ----------- -------------
Loss attributable to equity
holders of the parent:
Loss for the purpose of basic
and diluted loss per share (1,246) (75) (496)
----------- ----------- -------------
Number of shares:
Weighted average number of
shares in issue during the
year 2,664,518 339,550 339,550
Effect of outstanding options - - -
----------- ----------- -------------
Adjusted weighted average number 2,664,518 **339,550 **339,550
of shares
----------- ----------- -------------
Basic and diluted earnings
per share (pence) :
Basic and fully diluted loss
per share (46.8) (22.1) (141.4)
----------- ----------- -------------
**The weighted average number of shares for the six months to 31
May 2013 and the year ended 30 November 2013 have been adjusted to
reflect a consolidation of the Company's ordinary share capital in
May 2014, under which shareholders received 1 new GBP1 ordinary
share for every 100 GBP0.1p ordinary share held.
5. Issued share capital
Number of
shares Nominal value Share premium
GBP GBP
Issued and fully paid:
At 1 December 2012:
Ordinary shares of GBP1 each 339,550 339,550 1,246,711
Shares issued for cash - - -
At 31 May 2013 339,550 339,550 1,246,711
Shares issued for cash - - -
At 30 November 2013 339,550 339,550 1,246,711
Shares issued for consideration 13,949,810 13,949,810 6,801,348
Transferred to merger relief
reserve - - (1,780,424)
At 31 May 2014 14,289,360 14,289,360 5,554,637
On 8 May 2014 the Company completed an initial public offering
on AIM in which it issued 5,555,556 ordinary GBP1 shares at a price
of GBP1-80p per share, raising GBP10 million before expenses.
On the same day, the Company completed the acquisition of the
entire issued share capital of Rex Bionics Limited in exchange for
7,121,698 new GBP1 ordinary shares in the Company, and issued a
further 1,272,556 new GBP1 ordinary shares as a result of the
conversion of convertible loan notes issued by the Company and by
Rex Bionics Ltd during the period.
6. Goodwill
Fair Value
Net assets acquired Book Value Adjustments Adjustments Fair Value
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ---------- ----------- ------------ ----------
Current assets 736 - - 736
Other Non-current assets 333 - - 333
Current liabilities (679) - - (679)
Non-current liabilities (965) - - (965)
---------------------------- ---------- ----------- ------------ ----------
(575) - - (575)
---------------------------- ---------- ----------- ------------ ----------
Goodwill 10,024
---------------------------- ---------- ----------- ------------ ----------
Consideration 9,449
---------------------------- ---------- ----------- ------------ ----------
No assessment has been performed by management to separately
identify and value any intangible assets within the goodwill
balance of GBP10,024,000. This is due to there being insufficient
time since the acquisition date of 8 May 2014.
7. Ultimate controlling party
The Directors do not consider there to be a single ultimate
controlling party.
8. Directors' responsibility statement
The interim report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the interim financial statements in accordance with the
AIM Rules for Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SSSEELFLSELA
Rex Bionics (LSE:RXB)
Historical Stock Chart
From Sep 2024 to Oct 2024
Rex Bionics (LSE:RXB)
Historical Stock Chart
From Oct 2023 to Oct 2024