TIDMTED
RNS Number : 9286N
Tepnel Life Sciences PLC
27 February 2009
?
TEPNEL LIFE SCIENCES PLC
Preliminary results for the year ended 31 December 2008
Substantial increase in revenues and profits
Manchester, UK, 27 February 2009: Tepnel Life Sciences plc (AIM: TED), the
international Molecular Diagnostics and Research Products and Services Group,
announces preliminary results for the year ended 31 December 2008.
2008 Highlights
* Revenue from continuing operations increased to GBP24.4m from GBP17.8m, an
increase of 37% compared to the prior period and 28% on a constant currency
basis
* Gross profit increased 43% to GBP14.5m compared to GBP10.1m in 2007
* An increase of 103% in operating profit to GBP2.8m from GBP1.4m in 2007
* EBITDA increased 87% to GBP3.8m from GBP2.0m in 2007
* Operating cash inflow increased to GBP4.2m from GBP1.7m in 2007
* Tepnel continued to deliver significant and sustained growth in both revenue and
operating profit across both divisions in line with its strategic and
operational plans:
- Research Products and Services revenue increased by 35% (on a constant
currency basis) driven
by the strong demand for its pharmaceutical
outsourcing services from its new state-of-the-art
facility in
Livingston and newly introduced Biopharmaceutical and Genotyping service lines
- Molecular Diagnostics revenue increased by 23% (on a constant currency
basis) driven by sales of
the LifeMatch product line and the Elucigene
kits for genetic predisposition testing
* Recommended cash offer for Tepnel Life Sciences plc from Gen-Probe. The offer
values each Tepnel share at 27.1p and the fully diluted share capital of Tepnel
at approximately GBP92.8m.
"This has been an outstanding year for Tepnel with significant growth in
revenues and profits. Our pharmaceutical services business has exceeded
expectations with strong demand for our newly launched biopharmaceutical and
genotyping services. Our immunological products and food safety ranges have also
demonstrated steady growth in Europe and the USA through direct sales and
strengthening of our global distribution network.The Molecular Diagnostics
division has gone from strength to strength attributed to the growth in sales of
the LifeMatch range of products and Elucigene genetic predisposition tests"
comments Ben Matzilevich, Tepnel's Chief Executive Officer.
Commenting on the recent recommended offer from Gen-Probe to acquire Tepnel, Ben
Matzilevich said, "We believe Gen-Probe's offer represents significant value for
Tepnel's shareholders and recognises our past achievements and our future
potential in molecular diagnostics and pharmaceutical services."
+----------------------------+---------------+----------------+--------------+
| Continuing operations | Year ended | Year ended | Change |
| | 31 December | 31 December | |
| | 2008 | 2007 | |
| | GBP'000 | GBP'000 | |
+----------------------------+---------------+----------------+--------------+
| Group revenue | GBP24.4m | GBP17.8m | +37% |
+----------------------------+---------------+----------------+--------------+
| EBITDA | GBP3.76m | GBP2.01m | +87% |
+----------------------------+---------------+----------------+--------------+
| Operating profit | GBP2.82m | GBP1.39m | +103% |
+----------------------------+---------------+----------------+--------------+
| Profit after tax | GBP2.76m | GBP1.37m | +102% |
+----------------------------+---------------+----------------+--------------+
| Operating cash inflow | GBP4.20m | GBP1.72m | +144% |
+----------------------------+---------------+----------------+--------------+
| Basic EPS | 1.19p | 0.59p | +102% |
+----------------------------+---------------+----------------+--------------+
For further information, please contact:
Tepnel Life Sciences plc
Ben Matzilevich, Chief Executive Officer
Michael Slater, Group Finance Director
Tel: +44 161 946 2200
Capital MS&L
Mary Clark / Joey Whineray
Tel: +44 20 7307 5330
Seymour Pierce
Mark Percy / Tom Sheldon / Christopher Wren
Tel: +44 20 7107 8000
About Tepnel Life Sciences plc
Tepnel Life Sciences (AIM:TED) is an international life sciences products and
services group with two divisions, Molecular Diagnostics and Research Products
and Services. The Company has laboratories, manufacturing and operations in the
USA, UK and France with over 200 employees.
Tepnel provides test kits, reagents and services to two highly synergistic
markets, these being Molecular Diagnostics and Biomedical Research.
The Company's strategy has been to identify high growth niche opportunities
within these multi-billion pound markets. Tepnel focuses on these opportunities
with internally developed products, patents, expertise and know-how as well as
strategic acquisitions, to develop a leadership position within these defined
market segments.
The Tepnel Directors accept responsibility for the information contained in this
announcement. To the best of knowledge and belief of the Tepnel Directors, who
have taken all reasonable care to ensure such is the case, the information
contained in this announcement is in accordance with the facts and does not omit
anything likely to affect the import of such information.
This announcement is for information purposes only and does not constitute an
offer to sell or invitation to purchase any securities or the solicitation of
any vote for approval in any jurisdiction, nor shall there be any sale, issue or
transfer of the securities referred to in this announcement in any jurisdiction
in contravention of applicable law. Any response in relation to the Offer should
be made only on the basis of the information contained in the Scheme Document or
any document by which the Offer is made. This announcement does not constitute a
prospectus or prospectus equivalent document.
Seymour Pierce, which is authorised and regulated by the Financial Services
Authority, is acting exclusively for Tepnel and no one else in connection with
the Offer and will not be responsible to anyone other than Tepnel for providing
the protections afforded to clients of Seymour Pierce or for providing advice in
connection with the Offer or any matter referred to herein.
This announcement has been prepared for the purpose of complying with English
law and the City Code and the information disclosed may not be the same as that
which would have been disclosed if this announcement had been prepared in
accordance with the laws of jurisdictions outside the United Kingdom. The
release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law. Persons who are not resident in the
United Kingdom or who are subject to other jurisdictions should inform
themselves of, and observe, any applicable requirements.
Shareholders in the United States should note that the Scheme relates to the
shares of a UK company and will be governed by English law. Neither the proxy
solicitation nor the tender offer rules under the US Securities Exchange Act of
1934, as amended, will apply to the Scheme. Moreover, the Scheme will be subject
to the disclosure requirements and practices applicable in the UK to schemes of
arrangement, which differ from the disclosure requirements of the US proxy
solicitation rules and tender offer rules. Financial information included in the
Scheme documentation with respect to Tepnel has been or will have been prepared
in accordance with IFRS and may not be comparable to financial information of US
companies or companies whose financial statements are prepared in accordance
with US GAAP.No listing authority or equivalent has reviewed, approved or
disapproved of this announcement or any of the proposals described herein.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Code, if any person is, or becomes,
"interested" (directly or indirectly) in 1 per cent. or more of any class of
"relevant securities" of Tepnel, all "dealings" in any "relevant securities" of
Tepnel (including by means of an option in respect of, or a derivative
referenced to, any such "relevant securities") must be publicly disclosed by no
later than 3.30 p.m. (London time) on the Business Day following the date of the
relevant transaction. This requirement will continue until the date on which the
Scheme becomes effective or lapses or on which the "offer period" otherwise
ends. If two or more persons act together pursuant to an agreement or
understanding, whether formal or informal, to acquire an "interest" in "relevant
securities" of Tepnel, they will be deemed to be a single person for the purpose
of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of Tepnel by Gen-Probe or Tepnel, or by any of their respective
"associates", must be disclosed by no later than 12.00 noon (London time) on the
Business Day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities in
issue, can be found on the Panel's website at http://www.thetakeoverpanel.org.uk
"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a "dealing" under Rule 8, please contact an independent financial
adviser authorised under the Financial Services and Markets Act 2000, consult
the Panel's website at www.thetakeoverpanel.org.uk or contact the Panel on
telephone number +44 (0) 20 7638 0129; fax +44 (0) 20 7236 7013.
Chairman's Statement
2008 has been a truly outstanding year for Tepnel. The Group has delivered an
exceptional set of results and continued to make excellent progress against its
strategic plans. Revenue has grown by 37% to GBP24.4m and operating profits have
more than doubled to GBP2.8m.
Significant growth has been achieved across Tepnel's Molecular Diagnostics and
Research Products and Services divisions and is testament to the successful
implementation of the Group's strategic plans to build leadership positions in
niche markets within both of these sectors.
Revenue for the year ended 31 December 2008 increased to GBP24.4m from GBP17.8m,
an increase of 37% on the prior period and 28% on a constant currency basis.
Operating profit increased by over 100% to GBP2.8m from GBP1.4m in 2007 and
operating cash flow increased to GBP4.2m compared to GBP1.7m for the prior year.
Tepnel has made significant progress on a number of fronts across the Group.
Research Products and Services
The Research Products and Services division provides outsourcing services for
the pharmaceutical, biotechnology and healthcare industries, immunological
reagents and food safety products.
This division boasts an excellent year with rapid growth in revenue of 39% (35%
on a constant currency basis) to GBP10.5m. This growth was driven by the demand
for its new genotyping and biopharmaceutical services which were launched in
March 2008 on completion of Phase II of the construction of its state-of-the-art
laboratory facilities in Livingston, Scotland.
As anticipated, the launch of these new services has enabled Tepnel to offer a
wider portfolio of services to existing clients and gain access to new
customers, particularly within the biopharmaceutical arena. In addition the
knowledge and expertise behind these new services enhance the product
development opportunities for the Molecular Diagnostics division.
In October 2008 Tepnel announced that it had further expanded its genotyping
capabilities with the addition of a high-throughput Illumina iScan System,
positioning Tepnel as the first commercial provider of iScan services within the
UK. Accelerating and expanding its genetic analysis services at such a rapid
pace reflects Tepnel's commitment to its long term strategy of building its
market presence within the fast-growing sectors of pharmacogenomics and genetic
disease disposition testing.
Over the year Tepnel has continued to build relationships with some of the
largest pharmaceutical companies in the world. In May 2008, for example, Tepnel
announced it had extended its preferred supplier agreement with AstraZeneca for
DNA extraction services providing the opportunity to compete for further
business from AstraZeneca.
Tepnel has continued to grow the immunological reagent line. Growth has been
driven by demand for bulk antibodies from some of the world's leading diagnostic
companies and by demand for custom development work. Tepnel further strengthened
its global reach in May 2008 by signing a two year extension to its licensing
agreement with Abcam, the world's largest online supplier of antibody products,
ensuring that Tepnel's immunological products reach the broadest possible
audience.
Tepnel's food safety business has continued to make good progress with growth in
direct sales in the UK, Europe and particularly the USA as well as through its
distributor network and direct sales team. In October 2008 Tepnel expanded its
range of allergen test kits with the launch of the Walnut Assay Kit, the first
commercially available ELISA test kit for Walnut control and it is anticipated
that this will help to bolster sales into 2009.
Molecular Diagnostics
Tepnel's Molecular Diagnostics division focuses on the organ transplant
monitoring, foetal diagnostic testing and genetic predisposition testing
markets. Its innovative product line includes the LifeMatch transplant
monitoring assays and the Elucigene kits and reagents for the analysis of human
genetic disorders.
The Molecular Diagnostics division has demonstrated strong growth with a 35%
increase in revenues compared to the prior year and by 23% on a constant
currency basis. The LifeMatch range of products continues to gain market share
and increased sales through new customers and a broadening product range. It
continues to develop new products using the Luminex xMAP technology providing a
strong base for future growth.
Sales of the Elucigene product line have also continued to grow which can be
partly attributed to the recently launched QST*R kit for the rapid detection
during pregnancy of common genetic abnormalities which has been gaining momentum
across Europe.
In August 2008, Tepnel launched a new DNA test for the early detection of
Familial Hypercholesterolaemia (FH), a genetic condition that predisposes 1 in
500 individuals to high blood cholesterol levels and increased risk of
cardiovascular disease. Tepnel introduced its innovative test kit just ahead of
the release of clinical practice guidelines on FH by the influential National
Institute for Clinical Excellence (NICE).
Tepnel was pleased to announce in November that its Elucigene cystic fibrosis
assay had been chosen by the Illinois Department of Public Health as part of a
new mandate to screen all newborns for the disease. The successful
implementation of the assay in the screening programme demonstrates the ease and
utility of the Elucigene product and it is hoped will encourage more states to
implement statewide screening programs in the future.
Tepnel is continuously expanding its pipeline of new technologies for molecular
diagnostics and in June 2008 announced it had been awarded a BBSRC
(Biotechnology and Biological Sciences Research Council) grant to develop a
technology enabling the rapid detection and identification of pathogenic
micro-organisms which can cause potentially fatal infections in humans and
animals. This research enables Tepnel to explore this innovative technology and
to assess its potential for animal and human applications. It also demonstrates
Tepnel's commitment to expanding its product pipeline and entering new markets.
Future Prospects
Following the strategic reorganisation of the business in 2004, the Tepnel Group
has been transformed through building leadership positions in defined markets in
the Molecular Diagnostics and Research Products and Services sectors.
The Molecular Diagnostics division is focused on key growth markets, principally
organ transplant monitoring and foetal distress diagnostics and developing
products which utilise technologies for new markets such as the blood bank
market. Through significant investment in its new pharmaceutical services
facility in Livingston and recently launched services, the Research Products and
Services division is well placed to access the growing biopharmaceutical and
genotyping markets.
Whilst the strategy has proven successful, the Board is cognisant that in future
years Tepnel will require additional capital investment, access to certain
technologies and an expansion of its capabilities. With this in mind, Tepnel
announced on the 30 January 2009 that it had reached agreement on the terms of a
recommended cash acquisition by Gen-Probe Incorporated. The acquisition is to be
implemented by means of a Scheme of Arrangement (the 'Scheme').
The Tepnel Directors believe that the offer price of 27.1 pence per Tepnel share
reflects Tepnel's strong future prospects and growth opportunities and is in the
best interests of Tepnel Shareholders as a whole.
The Scheme requires approval of the Scheme Shareholders at the Court Meeting and
of the Tepnel Shareholders at the General Meeting, both of which have been
convened for 16 March 2009. If approved, it is expected that the Scheme will
become effective on or around 8 April 2009.
I would like to thank all of our employees for their effort and commitment in
driving Tepnel's success over the past year, as well as our investors whose
valued support has provided a stable platform for continued strong growth.
Alec Craig
Chairman
26 February 2009
Group Income Statement
for the Year Ended 31 December 2008
+-----------------+--------+--------+---------+--------+---------+
| | Note | Year ended | Year ended |
| | | 31 December | 31 December |
| | | 2008 | 2007 |
| | | | |
+-----------------+--------+------------------+------------------+
| | | | GBP'000 | | GBP'000 |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Revenue | 1 | | 24,355 | | 17,819 |
+-----------------+--------+--------+---------+--------+---------+
| Cost | | | (9,890) | | (7,676) |
| of | | | | | |
| sales | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Gross | | | 14,465 | | 10,143 |
| profit | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Selling | | | (3,563) | | (2,813) |
| and | | | | | |
| distribution | | | | | |
| costs | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Research | | | (2,738) | | (2,069) |
| and | | | | | |
| development | | | | | |
| costs | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Administrative | | | (5,342) | | (3,871) |
| expenses | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Operating | | 2,822 | | 1,390 |
| profit - | | | | |
| continuing | | | | |
| operations 1 | | | | |
+--------------------------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Finance | | | 173 | | 115 |
| income | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Finance | | | (208) | | (232) |
| expense | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Profit before | | 2,787 | | 1,273 |
| taxation - | | | | |
| continuing | | | | |
| operations | | | | |
+--------------------------+--------+---------+--------+---------+
| Tax | | | (23) | | 95 |
| (charge)/credit | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Profit for the | | 2,764 | | 1,368 |
| year - | | | | |
| continuing | | | | |
| operations | | | | |
+--------------------------+--------+---------+--------+---------+
| Loss for the | | - | | (124) |
| year - | | | | |
| discontinued | | | | |
| operations | | | | |
+--------------------------+--------+---------+--------+---------+
| Profit | | | 2,764 | | 1,244 |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Basic | 2 | | 1.19p | | 0.59p |
| EPS - | | | | | |
| continuing | | | | | |
| operations | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Diluted | 2 | | 1.07p | | 0.55p |
| EPS - | | | | | |
| continuing | | | | | |
| operations | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Basic | 2 | | 1.19p | | 0.54p |
| EPS - | | | | | |
| profit | | | | | |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Diluted | 2 | | 1.07p | | 0.50p |
| EPS - | | | | | |
| profit | | | | | |
| for the | | | | | |
| year | | | | | |
+-----------------+--------+--------+---------+--------+---------+
Group Statement of Recognised Income and Expense
for the Year Ended 31 December 2008
+---------------+----------+----------+
| | Year | Year |
| | ended | ended |
| | 31 | 31 |
| | December | December |
| | 2008 | 2007 |
+---------------+----------+----------+
| | GBP'000 | GBP'000 |
+---------------+----------+----------+
| Income | | |
| and | | |
| expense | | |
| recognised | | |
| directly | | |
| in equity | | |
+---------------+----------+----------+
| Exchange | 961 | 77 |
| differences | | |
| on | | |
| retranslation | | |
| of foreign | | |
| operations | | |
+---------------+----------+----------+
| Profit | 2,764 | 1,244 |
| for | | |
| the | | |
| year | | |
+---------------+----------+----------+
| Total | 3,725 | 1,321 |
| recognised | | |
| income and | | |
| expense | | |
| for the | | |
| year | | |
+---------------+----------+----------+
Group Balance Sheet
at 31 December 2008
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | Note | 31 December 2008 | 31 December |
| | | GBP'000 | 2007 |
| | | | GBP'000 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Non-current assets | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Property, plant and equipment | | 6,817 | 5,567 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Intangible assets | | 1,625 | 2,047 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Deferred tax asset | | 400 | 140 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | | 8,842 | 7,754 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Current assets | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Inventories | | 4,270 | 2,586 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Trade and other receivables | | 5,828 | 4,514 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Income tax receivable | | 229 | 168 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Cash and short-term deposits | | 6,546 | 3,499 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | | 16,873 | 10,767 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Total assets | 1 | 25,715 | 18,521 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Current liabilities | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Trade and other payables | | (9,585) | (8,075) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Financial liabilities | | (580) | (216) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Income tax payable | | (535) | (242) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | | (10,700) | (8,533) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Non-current liabilities | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Financial liabilities | | (1,764) | (1,274) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Provisions | | ( 90) | (120) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Total liabilities | 1 | (12,554) | (9,927) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Net assets | 1 | 13,161 | 8,594 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Capital and reserves | | | |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Equity share capital | 3 | 37,500 | 36,878 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Foreign exchange reserve | 3 | 980 | 19 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Retained losses | 3 | (25,319) | (28,303) |
+-----------------------------------------------------------+--------+--------------------+--------------------+
| Total equity | | 13,161 | 8,594 |
+-----------------------------------------------------------+--------+--------------------+--------------------+
Group Cash Flow Statement
for the Year Ended 31 December 2008
+------------------------------------------------------------+----+------------------------+-------------------+
| Investing activities | | | |
+------------------------------------------------------------+----+------------------------+-------------------+
| Interest received | | 162 | 102 |
+------------------------------------------------------------+----+------------------------+-------------------+
| Government grants received | | - | 100 |
+------------------------------------------------------------+----+------------------------+-------------------+
| Purchase of subsidiary undertakings | | - | (75) |
+------------------------------------------------------------+----+------------------------+-------------------+
| Cash held by subsidiary undertakings on acquisition | | - | 48 |
+------------------------------------------------------------+----+------------------------+-------------------+
| Investment in fixed deposit | | - | 200 |
+------------------------------------------------------------+----+------------------------+-------------------+
| Payments to acquire property, plant and equipment | | (2,148) | (2,092) |
+------------------------------------------------------------+----+------------------------+-------------------+
| Payments to acquire intangible assets | | (4) | (6) |
+------------------------------------------------------------+----+------------------------+-------------------+
| Net cash outflow from investing activities | | (1,990) | (1,723) |
+------------------------------------------------------------+----+------------------------+-------------------+
+------------------------------------------------------------+----+-----------------------+-------------------+
| Financing activities | | | |
+------------------------------------------------------------+----+-----------------------+-------------------+
| Interest paid | | (190) | (41) |
+------------------------------------------------------------+----+-----------------------+-------------------+
| Proceeds from issue of share capital | | 828 | - |
+------------------------------------------------------------+----+-----------------------+-------------------+
| Repayment of capital element of finance leases | | (342) | (85) |
+------------------------------------------------------------+----+-----------------------+-------------------+
| New borrowings | | 433 | - |
+------------------------------------------------------------+----+-----------------------+-------------------+
| Repayment of borrowings | | (126) | (43) |
+------------------------------------------------------------+----+-----------------------+-------------------+
| Net cash inflow/(outflow) from financing activities | | 603 | (169) |
+------------------------------------------------------------+----+-----------------------+-------------------+
+------------------------------------------------------------+----+-----------
=-----------+-------------------+
| Increase/(decrease) in cash and cash
equivalents | | 2,815 | (175)
|
+------------------------------------------------------------+----+--------
=--------------+-------------------+
| Cash and cash equivalents at the
beginning of the period | | 3,499 | 3,657
|
+------------------------------------------------------------+----+--------
=--------------+-------------------+
| Effect of exchange rates on cash and
cash equivalents | | 232 | 17
|
+------------------------------------------------------------+----+--------
=--------------+-------------------+
| Cash and cash equivalents at the end of
the period | | 6,546 | 3,499
|
+------------------------------------------------------------+----+--------
=--------------+-------------------+
Notes:
1 Business Segments (Primary Reporting Format)
The primary segment reporting format is determined to be business segments, as
the Group's risks and rates of return are affected predominantly by differences
in the products and services provided. Secondary segment information is provided
geographically. The Research Products and Services (RPS) segment provides
products and services for the Biomedical research industry. The Molecular
Diagnostics (MD) segment provides diagnostic testing products and services.
The following tables present revenue, profit and certain assets and liability
information regarding the Group's business segments for the years ended 31
December 2008 and 31 December 2007:
+--------------------------+----------------+------------+---------------+------------+--------------+----------------+----------------+
| | Continuing operations | | Discontinued |
+--------------------------+----------------------------------------------------------+--------------+---------------------------------+
| | RPS | MD | Total | operations | Total |
| | 31 December | 31 December | 31 December | 31 December | 31 December |
| | 2008 | 2008 | 2008 | 2008 | 2008 |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Segment revenue | 10,460 | 13,895 | 24,355 | - | 24,355 |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| | | | | | |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Results | | | | | |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Segment result | 1,519 | 2,744 | 4,263 | - | 4,263 |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Central costs | | | (1,441) | - | (1,441) |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Operating profit | | | 2,822 | - | 2,822 |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Net finance costs | | | (35) | - | (35) |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Profit before taxation | | 2,787 | - | 2,787 |
+-------------------------------------------+-----------------------------------------+--------------+----------------+----------------+
| Tax charge | | | (23) | - | (23) |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| Profit for the year | | | 2,764 | - | 2,764 |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| | | | | | |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| | | | | | |
+--------------------------+----------------+-----------------------------------------+--------------+----------------+----------------+
| | Continuing operations | | Discontinued |
+--------------------------+---------------------------------------------+---------------------------+---------------------------------+
| | RPS | MD | Total | operations | Total |
| | 31 December | 31 December | 31 December | 31 December | 31 December |
| | 2007 | 2007 | 2007 | 2007 | 2007 |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Segment revenue | 7,538 | 10,281 | 17,819 | 518 | 18,337 |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| | | | | | |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Results | | | | | |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Segment result | 733 | 1,967 | 2,700 | (124) | 2,576 |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Central costs | | | (1,310) | - | (1,310) |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Operating profit/(loss) | | | 1,390 | (124) | 1,266 |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Net finance costs | | | (117) | - | (117) |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Profit/(loss) before taxation | | 1,273 | (124) | 1,149 |
+--------------------------------------------------------+---------------+---------------------------+----------------+----------------+
| Tax credit | | | 95 | - | 95 |
+--------------------------+-----------------------------+---------------+---------------------------+----------------+----------------+
| Profit/(loss) for the | | | 1,368 | (124) | 1,244 |
| year | | | | | |
+--------------------------+----------------+------------+---------------+------------+--------------+----------------+----------------+
All segment revenue is from external customers
+---------------------------+++++----+----------------+----------------+-------------------+
| | | | | |
| | | RPS | MD | Total |
| | | 31 December | 31 December | 31 December |
| | | 2008 | 2008 | 2008 |
+---------------------------+--------+----------------+----------------+-------------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+--------+----------------+----------------+-------------------+
| Assets and liabilities | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Segment assets | | 11,414 | 7,126 | 18,540 |
+---------------------------+--------+----------------+----------------+-------------------+
| Central assets | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| - cash | | | | 6,546 |
+---------------------------+--------+----------------+----------------+-------------------+
| - income and | | | | 629 |
| deferred tax assets | | | | |
+-------------------------------+----+----------------+----------------+-------------------+
| Total assets | | | | 25,715 |
+---------------------------+--------+----------------+----------------+-------------------+
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Segment liabilities | | (5,231) | (4,444) | (9,675) |
+---------------------------+--------+----------------+----------------+-------------------+
| Central liabilities | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| - financial | | | | (2,344) |
| liabilities | | | | |
+----------------------------+-------+----------------+----------------+-------------------+
| - income tax | | | | (535) |
| liabilities | | | | |
+------------------------------+-----+----------------+----------------+-------------------+
| Total liabilities | | | | (12,554) |
+---------------------------+--------+----------------+----------------+-------------------+
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Net assets | | | | 13,161 |
+---------------------------+--------+----------------+----------------+-------------------+
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| | | RPS | MD | Total |
| | | 31 December | 31 December | 31 December |
| | | 2007 | 2007 | 2007 |
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+--------+ + + +
| | | | | |
+---------------------------+--------+ + + +
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Assets and liabilities | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Segment assets | | 9,477 | 5,237 | 14,714 |
+---------------------------+--------+----------------+----------------+-------------------+
| Central assets | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| - cash | | | | 3,499 |
+---------------------------+--------+----------------+----------------+-------------------+
| - income and | | | | 308 |
| deferred tax assets | | | | |
+-------------------------------+----+----------------+----------------+-------------------+
| Total assets | | | | 18,521 |
+---------------------------+--------+----------------+----------------+-------------------+
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Segment liabilities | | (4,945) | (3,250) | (8,195) |
+---------------------------+--------+----------------+----------------+-------------------+
| Central liabilities | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| - financial | | | | (1,490) |
| liabilities | | | | |
+----------------------------+-------+----------------+----------------+-------------------+
| - income tax | | | | (242) |
| liabilities | | | | |
+-----------------------------+------+----------------+----------------+-------------------+
| Total liabilities | | | | (9,927) |
+---------------------------+--------+----------------+----------------+-------------------+
| | | | | |
+---------------------------+--------+----------------+----------------+-------------------+
| Net assets | | | | 8,594 |
+---------------------------+++++----+----------------+----------------+-------------------+
Geographical Segments (Secondary Reporting Format)
The following table presents revenue, expenditure and certain asset
information regarding the Group's
geographical segments for the years
ended 31 December 2008 and 31 December 2007.
+---------------------------------------------------------+------------+--------------+
| Revenue by destination | Year ended | Year |
| Continuing operations | 31 | ended |
| | December | 31 |
| | 2008 | December |
| | GBP'000 | 2007 |
| | | GBP'000 |
+---------------------------------------------------------+------------+--------------+
| | | |
+---------------------------------------------------------+------------+--------------+
| UK | 8,191 | 5,759 |
+---------------------------------------------------------+------------+--------------+
| Rest of Europe | 7,799 | 4,959 |
+---------------------------------------------------------+------------+--------------+
| US | 5,582 | 4,252 |
+---------------------------------------------------------+------------+--------------+
| Asia | 1,477 | 1,715 |
+---------------------------------------------------------+------------+--------------+
| Rest of World | 1,306 | 1,134 |
+---------------------------------------------------------+------------+--------------+
| | | |
+---------------------------------------------------------+------------+--------------+
| Total segment revenue | 24,355 | 17,819 |
+---------------------------------------------------------+------------+--------------+
Revenue from discontinued operations is GBP nil (2007: GBP518,000 relating to
sales made in the United States).
2 Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing net profits
attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the period adjusted for the effects
of dilutive options and warrants.
+---------------------------------------------+----------------+---------------+
| | Year ended | Year ended |
| | 31 December | 31 December |
| | 2008 | 2007 |
| | GBP'000 | GBP'000 |
+---------------------------------------------+----------------+---------------+
| Earnings attributable to ordinary | | |
| shareholders: | | |
+---------------------------------------------+----------------+---------------+
| - continuing operations | 2,764 | 1,368 |
+---------------------------------------------+----------------+---------------+
| - discontinued operations | - | (124) |
+---------------------------------------------+----------------+---------------+
| Total | 2,764 | 1,244 |
+---------------------------------------------+----------------+---------------+
| | | |
+---------------------------------------------+----------------+---------------+
| | 000's | 000's |
+---------------------------------------------+----------------+---------------+
| Weighted average number of shares | 231,450 | 230,211 |
+---------------------------------------------+----------------+---------------+
| Dilutive effect of - options | 2,805 | 2,284 |
+---------------------------------------------+----------------+---------------+
| - warrants | 24,587 | 16,864 |
+---------------------------------------------+----------------+---------------+
| Diluted weighted average number of shares | 258,842 | 249,359 |
+---------------------------------------------+----------------+---------------+
| | | |
+---------------------------------------------+----------------+---------------+
| | | |
+---------------------------------------------+----------------+---------------+
| Basic earnings per share - continuing | 1.19p | 0.59p |
| operations | | |
+---------------------------------------------+----------------+---------------+
| Diluted earnings per share - continuing | 1.07p | 0.55p |
| operations | | |
+---------------------------------------------+----------------+---------------+
| Basic earnings per share - profit for the | 1.19p | 0.54p |
| year | | |
+---------------------------------------------+----------------+---------------+
| Diluted earnings per share - profit for | 1.07p | 0.50p |
| the year | | |
+---------------------------------------------+----------------+---------------+
The Group has granted additional share options to employees that were not
classified as being dilutive during the period but which may become dilutive in
the future.
3 Statement of changes in equity
+---------------------+-----------+----------------+----------------+-------------------------------+
| | | Equity Share | Foreign | Retained |
| | | Capital | Exchange | Losses |
| | | | Reserve | |
+---------------------+-----------+----------------+----------------+-------------------------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------+-----------+----------------+----------------+-------------------------------+
| At 1 January 2008 | | 36,878 | 19 | (28,303) |
+---------------------+-----------+----------------+----------------+-------------------------------+
| Total recognised income and | 622 | 961 | 2,764 |
| expense | | | |
+---------------------------------+----------------+----------------+-------------------------------+
| Share-based | | - | - | 220 |
| payments | | | | |
+---------------------+-----------+----------------+----------------+-------------------------------+
| At 31 December 2008 | | 37,500 | 980 | (25,319) |
+---------------------+-----------+----------------+----------------+-------------------------------+
Equity share capital
The balance classified as equity share capital includes the total net proceeds
(both nominal value and share premium) on issue of the Company's equity share
capital, comprising 1p ordinary shares.
Foreign exchange reserve
The foreign exchange reserve is used to record exchange differences arising from
the translation of the financial statements of foreign subsidiaries.
4 Additional financial information
+---------------------------------------------+----------------+---------------+
| Continuing operations | Year ended | Year ended |
| | 31 December | 31 December |
| | 2008 | 2007 |
| | GBP'000 | GBP'000 |
+---------------------------------------------+----------------+---------------+
| Operating profit | 2,822 | 1,390 |
+---------------------------------------------+----------------+---------------+
| Depreciation | 915 | 603 |
+---------------------------------------------+----------------+---------------+
| Amortisation | 22 | 12 |
+---------------------------------------------+----------------+---------------+
| EBITDA | 3,759 | 2,005 |
+---------------------------------------------+----------------+---------------+
5 Constant currency sales growth
2008 results compared with 2007 at constant 2007 exchange rates
+----------------------------+----------------+----------------+----------------+
| | Year ended | Year ended | % change |
| | 31 December | 31 December | |
| | 2008 | 2007 | |
+----------------------------+----------------+----------------+----------------+
| Continuing operations | GBP'000 | GBP'000 | |
+----------------------------+----------------+----------------+----------------+
| Research Products and | 10,147 | 7,538 | 35% |
| Services | | | |
+----------------------------+----------------+----------------+----------------+
| Molecular Diagnostics | 12,661 | 10,281 | 23% |
+----------------------------+----------------+----------------+----------------+
| Revenue | 22,808 | 17,819 | 28% |
+----------------------------+----------------+----------------+----------------+
Foreign currency
The principal exchange rates used in the preparation of the Group accounts were
as follows:
+----------------------------+----------------+----------------+----------------+
| Continuing operations | | Year ended | Year ended |
| | | 31 December | 31 December |
| | | 2008 | 2007 |
+----------------------------+----------------+----------------+----------------+
| US dollar - average | | 1.86 | 2.00 |
+----------------------------+----------------+----------------+----------------+
| - closing | | 1.45 | 1.99 |
+----------------------------+----------------+----------------+----------------+
| Euro - average | | 1.26 | 1.46 |
+----------------------------+----------------+----------------+----------------+
| - closing | | 1.03 | 1.36 |
+----------------------------+----------------+----------------+----------------+
6 Dividends
The Directors do not recommend the payment of a dividend.
7 Accounting policies
The preliminary results for the year ended 31 December 2008 have been prepared
on the basis of accounting policies consistent with those applied in the 2007
financial statements.
The preliminary results for the year ended 31 December 2008 have been approved
by the Directors. Our auditors have issued an unqualified audit report on the
results for the year ended 31 December 2008 under section 235 of the Companies
Act 1985. The accounts for the year ended 31 December 2008 will be delivered to
the Registrar of Companies in due course. The financial information set out
above does not constitute statutory accounts within the meaning of section 240
of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAEAKADSNEFE
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