RE: The Product3 Mar 2022 02:21
The.Italian. FYI
PLE 2012:ANNUAL REPORT AND ACCOUNTS
THE UROLOGY CO
In 2009 the Company formed a new subsidiary, The Urology Co, which was intended to create a
revenue earning, profit and cash flow generative specialty pharmaceutical company. This would
focus on the Company’s core competences of urology and sexual health conditions to leverage that
know-how.
This business became operationally effective in 2010 and earned its first material revenues in 2011.
Over the course of 2012, revenues were £582,000 (2011: £181,000) an increase of 3-fold over the
previous year. However, this business recorded an operating loss of £1,046,000 (2011: £1,191,000); and
while the revenue growth and reduced losses were encouraging, the business has not reached the
expected levels of growth and profitability.
In addition, this business required further capital in order to prosper. In February 2013, in light of the
Company’s capital requirements, the Directors concluded that it would conduct a strategic review
of The Urology Co. During this review the Directors considered (i) a reduction in the cost base of the
Urology Co to establish profitability; and (ii) selling that business to a third party. It was concluded that
cost cutting would not achieve its objective; and, despite attempts to find a potential acquirer of the
business, one could not be secured in an acceptable timeframe. The Directors (including JM) therefore concluded
to place it into administration on 25 February 2013.
The Urology Co earned revenue of £582,000 (2011: £181,000) for the year, an increase of 3-fold over
the prior year. On this, gross profit of £65,000 (2011: £37,000) with gross margins of 11% (2011: 20%) was
achieved. Offset against this were Operating costs of £1,111,000 (2011: £1,229,000), largely comprising
sales and marketing costs of £890,000 (2011: £1,117,000). Overall The Urology Co generated a loss for
2012 of £1,046,000 (2011: £1,191,000).
On 25 February 2013, The Urology Co was placed into administration and as a result, its assets are
reserved for its creditors. It is not anticipated that there will be any recovery for the Company as the
shareholder. Consequently provision has been made in full against the inter-company balances due.
In 2013 there will be a number of adjustments to both the assets and liabilities of that entity and the
results will be shown as a discontinued item.
The immediate effect of ceasing this operation will be to reduce cash outflow of this operation and
ensure that the Company’s resources are focused entirely on PSD502.
From the final PLE 2014 YE results:
The Urology Company Limited, which was placed into administration in February 2013, is shown as a discontinued operation.
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