Rns...30 Oct 2013 10:23
30 October 2013
Draganfly Investments Limited ("Draganfly" or the "Company")
Directors' report and audited financial statements
for the year ended 30 April 2013
Chairman's Statement
For the year ended 30 April 2013
During the 12 months under review net assets have decreased from 0.67 pence per share to 0.65 pence per share.
Whilst this outcome represents a negligible change in Net Asset Value, the composition of the portfolio has altered materially. We have sold a substantial proportion of our quoted positions during the period, and have also sold our entire position in Immedia Group Plc since the period end. This leaves the portfolio with only two quoted shareholdings, ASX listed Royal Resources Limited and AIM listed Strategic Minerals PLC.
Turning to our remaining private shareholding, Atlantic Healthcare plc ("Atlantic Healthcare"), we are happy to report that the company continues to progress very well. In March 2013 we announced that the company had completed a fundraising which increased the holding value of our investment in the company. Subsequent to that fundraising Atlantic Healthcare also announced that it had been awarded GBP1.9 million by the Technology Strategy Board (on behalf of the UK Government). Awards are granted to applicants demonstrating significant commercial and scientific potential, which reinforces our confidence in the progress made by Atlantic Healthcare to date. The award will contribute to the development cost of the company's core product, alicaforsen, in its forthcoming US/EU Phase 3 clinical study in pouchitis. In addition alicaforsen has been granted orphan designation in Europe and the United States for treatment of this disease, reflecting the fact that alicaforsen addresses an area of high unmet medical need. We shall continue to update shareholders on progress.
Finally, we note the reduced proportion of listed shareholdings and hence liquidity within the portfolio. This reflects disappointing results from a number of AIM investments alongside the cost of maintaining Draganfly's AIM quoted status.
The Board believes that the company is able to meet its financial obligations for the next 12 months, and subject to the performance of the unquoted holdings, an even longer period. However there is uncertainty and this has been raised in the notes to the accounts and the Audit Report. We are reviewing strategies which we hope can provide improved scale and investment performance, and your Board will be updating investors in due course.
May I take this opportunity to thank investors for their support.
Edward Bayman
Chairman