RNS Number:9028K
Tepnel Life Sciences PLC
1 October 2001
The issuer has made the following amendment to the Final Results announcement
released today at 08:10 under RNS No 8970K.
The expansion of Tepnel Life Science's scientific services to include SNP
genotyping took place with effect from 28 September 2001 and not 28 October
2001 as previously stated.
All other details remain unchanged.
The full corrected version is shown below.
1 October 2001
TEPNEL LIFE SCIENCES PLC ("the Company")
www.tepnel.com
Tepnel Life Sciences provides nucleic acid purification solutions and
analytical services to the rapidly growing BioMedical research market.
Highlights
* Strong growth in sales; 2001 sales of #1.76 million were 56%
higher than 2000;
* Development of the Company's first automated system for nucleic
acid purification remains on target for global launch in the Autumn
of 2001;
* Board strengthened by the appointment of a new Chief Executive
Officer, Mr Ben Matzilevich, and a new Non-Executive Director, Mr.
Don Marvin.
Post year-end:
* Successful completion of a fully underwritten placing and open
offer that raised #7.45 million (net);
* Move to Alternative Investment Market (AIM), which provides access
to a broader potential institutional investor base.
* Significant increase in scientific service capability through the
acquisition of the Medicines Testing Laboratory from The Royal
Pharmaceutical Society of Great Britain;
* On 28 September 2001 Tepnel further expanded its portfolio of
scientific services to include SNP genotyping, through purchase of an
Orchid SNPstream(R) 25K genotyping system and database access. Orchid
and Tepnel have agreed to collaborate to market pharmacogenetic SNP
genotyping services in the UK and Ireland and Tepnel has granted
Orchid certain rights to license Tepnel technology. As part of the
collaboration, Orchid is also making a substantive equity investment
in Tepnel.
Enquiries:
Tepnel Life Sciences PLC 0161-946-2200
Benjamin Matzilevich, Chief Executive Officer
Mike Billingham, Commercial Director
Carol Smith, Marketing Communications Manager
Hudson Sandler 020-7796-4133
Piers Hooper
CHAIRMAN'S STATEMENT
Tepnel Life Sciences ("the Company")
Preliminary Results - 2001
Introduction
The year under review has been one of sound progress in all aspects of our
business. The Company is now well placed to create shareholder value through
the provision of total nucleic acid purification solutions and BioAnalytical
services to the BioMedical research market. We have a proven management team,
are well capitalised and remain on course to achieve the commercial launch of
our first automated system for DNA purification in the Autumn of 2001.
Financial Results
Turnover during the year ending 30 June 2001 reached #1.76 million, a 56%
increase over last year's sales figure of #1.13 million. Operating losses have
increased to #2.73 million (2000: #2.02 million), due primarily to increased
spending on R&D, specifically on finalising the development of the plasmid
purification system. The basic loss per share was 5.2p (2000: 3.9p).
On 15 June, we were pleased to announce a #7.45m fundraising (net of
expenses). We believe that our ability to raise this money in difficult market
conditions is a strong and encouraging endorsement of Tepnel's strategy,
management and prospects going forward.
The additional capital will enable us to accelerate the development and
commercialisation of the purification systems for automated drug development
and genetic analysis, develop automated systems for the purification of RNA,
broaden the manual kits product offering, expand our sales and marketing
activities, expand our contract services business and provide working capital
for the Group. In tandem with the fund raising in June we announced our
intention to move to AIM. The move to AIM provides us with a broader potential
institutional investor base and membership of a market that is better suited
for a company of Tepnel's size and current stage of development.
Board Appointments
In March of this year we were delighted to be able to announce the appointment
of our new Chief Executive Officer, Ben Matzilevich. The Board has been
further strengthened during the period by the appointment of Don Marvin as
Non-Executive Director. Mr. Marvin is Senior Vice President, Chief Operating
Officer and Chief Financial Officer of Orchid BioSciences Inc. (Nasdaq: ORCH).
In addition to their extensive management experience in the biotech industry,
both of these appointments reinforce Tepnel's experience of, and connections
to, the US market.
Post Year End Events
On 17 July, Tepnel completed the acquisition of the Medicines Testing
Laboratory (MTL) from The Royal Pharmaceutical Society of Great Britain. This
acquisition brings significant turnover to the Group, will enable Tepnel to
expand its range of services for the pharmaceutical industry and position it
to penetrate the rapidly growing outsourcing market.
Future Prospects
Tepnel Life Sciences has moved steadily forwards during 2000/2001. It has
completed a highly successful fundraising and the strategic acquisition of
MTL, has made new Board appointments and has a clear strategy for growth based
on automated systems, scientific services and manual kits. Together with the
anticipated launch of its first automated system by the end of Autumn 2001,
Tepnel continues to believe that in the medium term it is ideally positioned
to deliver value to shareholders.
Peter Raymond, Chairman
1 October, 2001
OPERATIONAL REVIEW
Tepnel's business strategy is a three tiered approach designed to optimise
penetration of any given customer account. We call this our tri-polar sales
strategy which combines the sale of automated systems, manual kits and
contract services. This strategy enables Tepnel to take advantage of
cross-selling opportunities, as companies and research laboratories that buy
one of our products or services are potential customers for others. This
integrated approach provides our customers with the complete solution for
their DNA purification requirements on a cost-effective basis. To support this
strategy, Tepnel is creating global channels to market through which it will
sell all its products and services. This distribution network will use both
local
distributors and direct sales as appropriate.
Automated Systems for Nucleic Acid Purification (T1000)
The expected launch of our first automated DNA purification system, which
purifies plasmid DNA from bacteria, remains on track for Autumn 2001. T1000
pre-production instruments will shortly begin customer site testing and Beta
sites to date have been encouraging. This system has a number of advantages
over other products currently available on the market, including DNA yield,
DNA purity, ability to process up to 96 samples in approximately two hours and
complete "walk away" automation of the sample purification process. We are
currently in discussions with leading industry participants regarding overseas
distribution and will report on developments in due course. Tepnel is also
developing an automated drug development system for the pharma/biotech market
and a genetic analysis system for genetic screening. The drug development
system purifies genomic DNA from large volumes of whole blood while the
genetic analysis system purifies genomic DNA from a range of starting
materials including blood and cultured cells. These systems are designed to
process large numbers of samples in a short period of time, using full
automation. These systems are currently under development and preliminary data
supports the potential of these instrument systems. In terms of distribution,
we believe that in the UK we have both the capability and the customer base to
market the automated systems directly, with associated gross margin benefits.
However, for overseas markets it makes sense to seek a local partner, who can
bring their own contacts and knowledge of the local market to the sales
effort.
Manual Kits for Nucleic Acid Purification
Tepnel Life Sciences currently has 12 Nucleon(R) DNA extraction and
purification kits on the market, which can be used for work with blood,
cultured cells, plant, soft/hard tissue and yeast. Additional kits and
applications are currently under development. Tepnel sells these kits directly
in the UK and through a global distribution agreement with Amersham Pharmacia
Biotech to the life sciences research market. In addition, the Group has
expanded its sales of DNA-based food testing kits for the detection of GMOs
and for meat species identification.
Scientific Services
The Company provides a range of DNA testing and analytical services for the
life sciences research, pharmaceutical and AgBio markets. Services fall into
three categories: nucleic acid purification/ genotyping, drug analysis and
food testing. This part of the business has shown strong growth over the last
12 months. On 17 July, Tepnel completed the acquisition of the Medicines
Testing Laboratory (MTL) from The Royal Pharmaceutical Society of Great
Britain. Established over 20 years ago and employing 44 people, MTL is a
provider of analytical and biological testing services to the pharmaceutical
industry. This acquisition brings significant turnover to the Group and will
enable Tepnel to expand its range of analytical services and position it well
to penetrate the rapidly growing market for these services. Through the
expansion of its service capacity, Tepnel is capitalising on a move, by large
pharmaceutical companies, to outsource their testing needs. In addition, the
acquisition supports Tepnel's business strategy, by providing sales access to
major international pharmaceutical companies who are potential customers for
Tepnel's DNA purification kits and automated systems for DNA purification.
FINANCIAL REVIEW
Results
2001 sales of #1.76 million were 56% higher than2000. Second half sales were
41% higher than the first half continuing the steady growth of the last two
years. Gross profit margins improved from #0.48 million (42.8%) in 2000 to #
0.84 million (47.5%) in 2001. In line with expectations, research and
development expenditure rose in the year by #0.95 million to #2.06 million
reflecting increased activity on the automated plasmid purification instrument
which will be launched as planned in the Autumn of 2001 and on the prototype
drug development and genetic analysis systems. This increased investment in
research and development led to a rise in operating losses from #2.02 million
in 2000 to #2.73 million in 2001.
Acquisitions
On 17 July 2001 the Company completed the acquisition of the Medicines Testing
Laboratory business from The Royal Pharmaceutical Society of Great Britain.
This acquisition brings significant turnover to the Group and increases its
portfolio of scientific services.
Funding
On the 16 July 2001 the Company successfully completed a fully underwritten
placing and open offer and raised #7.45 million net of expenses from the issue
of 40.26 million new ordinary shares at 20p per share. During the year the
Company commenced drawdown of the #2.2 million convertible secured loan
facility. At 30 June 2001 #1 million of the loan had been drawn down and the
Company had #0.35 million in the bank. The loan has subsequently been repaid
in full.
Consolidated Profit and Loss Account
For the year ended 30 June 2001
2001 2000
#'000 #'000 #'000 #'000
Turnover 1,759 1,130
Cost of sales (923) (646)
---------- ----------
Gross profit 836 484
Research and development (2,055) (1,103)
Sales and marketing (908) (570)
Administrative expenses (606) (828)
Total administrative expenses (3,569) (2,501)
---------- ----------
Operating loss (2,733) (2,017)
Interest payable (29) (2)
Interest receivable 69 74
---------- ----------
Loss on ordinary activities before (2,693) (1,945)
taxation
Taxation - -
---------- ----------
Loss for the financial year (2,693) (1,945)
====== ======
Basic loss per share 5.2p 3.9p
Fully diluted loss per share 5.2p 3.9p
The Group's activities for the year relate to continuing operations.
All recognised gains and losses are included above.
Consolidated Balance Sheet
At 30 June 2001
Proforma
2001 2001 2000
#'000 #'000 #'000
Fixed Assets
Intangible assets 1,705 1,574 1,622
Tangible assets 892 548 545
---------- ---------- ----------
2,597 2,122 2,167
Current Assets
Stocks 552 450 356
Debtors - due within one year 720 720 492
Investments 20 20 20
Cash at bank and in hand 6,501 352 2,037
---------- ---------- ----------
7,793 1,542 2,905
Creditors : amounts falling 912 1,938 674
due within one year (including convertible
loan of #1,000,000)
---------- ---------- ----------
Net current (liabilities) / assets 6,881 (396) 2,231
Creditors : amounts falling 21 21 -
due greater than one year
---------- ---------- ----------
Total assets less current liabilities 9,457 1,705 4,398
---------- ---------- ----------
Capital and reserves
Called up share capital 939 520 520
Share premium account 25,905 18,572 18,572
Profit and loss account (17,387) (17,387) (14,694)
---------- ---------- ----------
Equity shareholders' funds 9,457 1,705 4,398
====== ====== ======
The proforma balance sheet is for illustrative purposes only and shows the
effect on the 30 June 2001 consolidated balance sheet of the Placing and Open
Offer completed on 16 July 2001, the Medicines Testing Laboratory acquisition
completed on 17 July 2001 and the BF Finance Limited loan repayment made on 20
July 2001 as if all three transactions took place on 30 June 2001.
Consolidated Cash Flow Statement
For the year ended 30 June 2001
2001 2000
#'000 #'000
Reconciliation of operating loss to net cash flow from
operating activities
Operating loss (2,733) (2,017)
Depreciation 158 196
Amortisation 48 33
Provision against current asset investments - 5
(Increase)/decrease in stocks (94) 138
Increase in debtors (228) (213)
Increase in creditors 261 129
Profit on disposal of fixed assets - (5)
---------- ----------
Net cash outflow from operating activities (2,588) (1,734)
---------- ----------
Consolidated cash flow statement
Net cash outflow from operating activities (2,588) (1,734)
Returns on investments 40 72
Investing activities (131) (292)
Acquisitions - (431)
---------- ----------
Net cash outflow before financing (2,679) (2,385)
Management of liquid resources 1,608 396
Financing 994 2,358
---------- ----------
(Decrease) / increase in cash (77) 369
---------- ----------
Reconciliation of net cash flow to movements in net funds
(Decrease) / increase in cash (77) 369
Cash inflow from short term deposits (1,608) (396)
Cash outflow from decrease in lease financing 6 6
New convertible loan (1,000) -
---------- ----------
Change in net funds resulting from cash flow (2,679) (21)
New finance leases (30) (20)
Net funds at the beginning of year 2,023 2,064
---------- ----------
Net (debt) / funds at the end of year (686) 2,023
====== ======
Notes:
1. Nature of Preliminary Announcement
The financial information supporting the preliminary announcement relating to
Tepnel Life Sciences PLC does not constitute statutory accounts as defined by
Section 240 of the Companies Act 1985. The abridged comparative financial
information for the year to 30 June 2000 has been based on the statutory
accounts of Tepnel Life Sciences PLC for the year to 30 June 2000. These
accounts have been reported on by the Company's auditors and delivered to the
Registrar of Companies. The report of the auditors was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.
The preliminary financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2000 statutory accounts. The
auditors have not yet reported on the accounts for the year ended 30 June
2001. The statutory accounts for the year will be delivered to the Registrar
of Companies following the Company's Annual General Meeting.
2. The Directors do not recommend the payment of a dividend.
3. All business divisions contribute to central administrative expenses
and it is not considered practicable to analyse operating profits or losses by
business segment.
4. The basic loss per share has been calculated on the weighted average
of shares in issue during the year, namely 51,988,999 (2000 - 49,943,395) and
losses of #2,693,000 (2000 - #1,945,000). In both years there is no material
difference between the basic loss per share and the diluted loss per share.
5. Post balance sheet events
On 16 July 2001, Tepnel Life Sciences PLC completed a Placing and Open Offer
of 40,261,249 ordinary shares at 20p per share, raising #8,052,250 gross
(approximately #7,450,000 after expenses). At the same time the Company
transferred from the Official List of the London Stock Exchange to AIM.
On 17 July 2001 the Company completed the acquisition of the trade and assets
of the Medicines Testing Laboratory from the Royal Pharmaceutical Society of
Great Britain at a cost of #550,000 before acquisition costs. The
consideration was satisfied on completion by #275,000 payable in cash and
#275,000 satisfied by the issue of 1,697,531 ordinary shares at 16.2p per
share.
On 20 July 2001 the Company repaid BF Finance Limited all of the convertible
loan facility drawn down during the year under an agreement dated 8 December
1999. The total sum repaid was #1,033,000 including #33,000 of accrued
interest payable. On 20 July 2001 the remaining facility under this agreement
was terminated.
Ted Baker (LSE:TED)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ted Baker (LSE:TED)
Historical Stock Chart
From Jul 2023 to Jul 2024
