ALB.L Regulatory News (ALB)

14 Dec 2005 07:00

Bionex Investments PLC14 December 2005 Bionex Investments Plc Preliminary Announcement of Results for the Year ended 30 September 2005 14 December 2005 Chairman's Statement In the year to 30 September 2005 the Company made a loss after taxation of£134,058 primarily due to further write downs in the life science portfolio.At the same date net assets per share were 2.29 pence. At 30 September 2005 cash and short term deposits at bank was £2.56m and moniesdue shortly after the year end, and since received, on redeeming our managedinvestment was £516,000. In addition quoted investments total a further£400,000. As reported in the Interim Statement for the six months to 31 March 2005, theBoard remains of the view that new investment in the unquoted life sciencesector was unlikely to generate the required returns and accordinglyshareholders were consulted and subsequently approved, on 24 August 2005, tochange the investment strategy. The focus for the remainder of the financialyear under review and since, has been to identify and invest in smaller quotedand unquoted businesses without reference to sector specifics. Events sincethen have confirmed the weakness and lack of attractive opportunities in thebiotechnology market. Investee companies currently in the portfolio range fromrenewable energy to telecoms services to FSA regulated corporate finance. Profits on disposal of investments in the year relate to the shorter termportfolio which, for the amount of capital deployed, has, in the Board'sopinion, produced a satisfactory performance, and has contributed to covering asignificant part of the overheads of the Company. Investment provisions fallinto two categories, the first being the substantial further erosion in value onthe original life science portfolio and the second being the mark to market ofour current quoted portfolio where we are required to account for unrealised(and in the Board's view temporary) losses but are not allowed to reflect oroffset unrealised profits. In terms of the original life science portfolio therehave been two further investments, one of which was previously contracted, theother less than £10,000, which was undertaken prior to the strategic review. Ofthe remaining three investments in the portfolio at the year end furtherprovisions have been made against two, due to them both requiring refinancingwhich has in each case been done, or is about to be done, at very significantdiscounts to earlier fundings. This again reinforces the view that investing inearly stage life science is not attractive. We continue to see many potential opportunities for investment in smallercompanies generally, both quoted and unquoted, and expect to utilise a greaterpart of cash resources over the coming year where we believe there areattractive returns. Christopher RobertsChairman Profit and Loss Accountfor the year ended 30 September 2005 Note 2005 2004 £ £ Profit on disposal of investments 114,888 1,041,440 Management expenses (133,214) (199,884) Other income - 2,231 ___________ ____________Investment provision (216,980) (501,286) (Loss)/profit on ordinary activities before interest (235,306) 342,501Interest receivable and similar income 128,719 64,084 ___________ ____________ (Loss)/ profit on ordinary activities before taxation (106,587) 406,585Taxation (27,471) (15,000) ___________ ____________Retained (loss)/ profit for the year (134,058) 391,585 ___________ ____________ (Loss)/earnings per ordinary shareBasic 1 (0.08p) 0.25p ___________ ____________ There were no recognised gains and losses other than the results shown above. None of the Company's activities was acquired or discontinued during the abovetwo financial years. Balance Sheetas at 30 September 2005 2005 2004 £ £Fixed assetsInvestments 150,000 201,900 ___________ ____________ Current assetsInvestments 560,507 500,000Debtors 536,608 176,085Cash and short term deposits at bank 2,561,787 3,057,868 ___________ ____________ 3,658,902 3,733,953 Creditors: amounts falling due within one year (189,691) (182,584) ___________ ____________Net current assets 3,469,211 3,551,369 ___________ ____________Net assets 3,619,211 3,753,269 ___________ ____________ Capital and reservesCalled up share capital 1,579,256 1,579,256Share premium account 2,614,889 2,614,889Profit and loss account (574,934) (440,876) ___________ ____________Equity shareholders' funds 3,619,211 3,753,269 ___________ ____________ Cash Flow Statementfor the year ended 30 September 2005 2005 2004 £ £ Operating (loss)/profit (235,306) 342,501Investment provision 216,980 501,286Decrease/(increase) in debtors 82,391 (71,115)(Decrease)/increase in creditors (84,424) 11,458Profit from the sale of Investments (114,888) (1,041,440) ___________ ____________Net cash outflow from operating activities (135,247) (257,310) ___________ ____________ Returns on investments and servicing of financeInterest received 128,719 64,084 ___________ ____________ Taxation Paid (23,471) - Capital expenditure and financial investmentPurchase of fixed asset investments (109,889) (90,964)Sale of fixed asset investments - 2,779,475Purchase of current asset investments (1,164,988) (474,424)Sale of current asset investments 808,795 - ___________ ____________ (466,082) 2,214,087 ___________ ____________ Management of liquid resourcesDecrease/(increase) in short term deposits 3,000,000 (2,100,000) ___________ ____________Increase/(decrease) in cash for the year 2,503,919 (79,139) ___________ ____________ 30 September 30 September 2004 Cash flow 2005 £ £ £Analysis of changes in net fundsCash at bank and in hand 57,868 2,503,919 2,561,787Short term deposits 3,000,000 (3,000,000) - ___________ ____________ ____________ 3,057,868 (496,081) 2,561,787 ___________ ____________ ____________ 2005 2004 £ £ Reconciliation of net cash flow to movement in net fundsIncrease/(decrease) in cash for the year 2,503,919 (79,139)Cash (outflow)/inflow from change in liquid resources (3,000,000) 2,100,000 ___________ ____________ Movement in net funds in the year (496,081) 2,020,861Net funds at 30 September 2004 3,057,868 1,037,007 ___________ ____________Net funds at 30 September 2005 2,561,787 3,057,868 ___________ ____________ 1. (LOSS) / EARNINGS PER SHARE The calculation of basic (loss) / earnings per ordinary share is based on the(loss) / profit on ordinary activities after tax and on the weighted averagenumber of ordinary shares in issue during the year. The calculation of diluted(loss) / earnings per ordinary share is based on the basic (loss) / profit perordinary share adjusted to allow for the issue of shares on the assumedconversion of all dilutive instruments. The (loss) / profit and weighted average number of shares used in thecalculation are set out in the table below: 2005 2004 Weighted Weighted average Loss average Earnings Loss number per share Profit number per share £ of shares pence £ of shares pence Basic (loss) / earnings per ordinary share (134,058) 157,925,634 (0.08)p 391,585 157,925,634 0.25p __________ ___________ __________ __________ ___________ __________ There are no dilutive instruments in existence. 2. STATUS OF FINANCIAL INFORMATION The financial information set out in this announcement does not constitute thecompany's statutory accounts for the year ended 30 September 2005 or 2004. Thefinancial information for the year ended 30 September 2004 is derived from thestatutory accounts for that year which have been delivered to the Registrar ofcompanies. The auditors reported on those accounts; their report wasunqualified and did not contain a statement under s237 (2) or (3) Companies Act1985. The statutory accounts for the year ended 30 September 2005 will befinalised on the basis of the financial information presented by the directorsin this preliminary announcement and will be delivered to the Registrar ofCompanies following the company's annual general meeting. Enquiries: Christopher Roberts - Executive Chairman 020 7448 4400 This information is provided by RNS The company news service from the London Stock Exchange