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28 Sep 2012 11:55
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Advanced Oncotherapy Plc
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("Advanced Oncotherapy" or the "Company")
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Interim Results for the Six Months Ended 30 June 2012
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Chief Executive's Statement
The six months to 30 June 2012 has been a period of significant strategic change for the Company. We announced at the end of March, following the sale of our German property interests in November 2011, the intention to move the Company into the development and delivery of cancer services through our shareholdings in Advanced Proton Solutions (Holdings) Limited and Oncotherapy Resources Limited. On 16 July we announced that the name of the Company was to be changed to Advanced Oncotherapy Plc and that our wholly owned property development subsidiary, The Healthcare Property Company Limited, was to be demerged.
On 31 August, at a General Meeting of the Company, the Shareholders approved the change of name together with a significant increase in Directors' authorities to issue new shares.
The name change was registered and announced on 7th September.
As reported below the demerger of the property development business is being progressed.
During the six month period ended 30 June 2012 the Group had revenues of ยฃ1.41 million (2011: ยฃ3 million; year to 31.12.2011: ยฃ6.2 million.). The loss on ordinary activities before taxation was ยฃ1.02 million (2011: ยฃ0.6 million; year to 31.12.11: ยฃ1.67 million). The comprehensive loss for the period was ยฃ1.02 million (2011: ยฃ0.16; year to 31.12.12: ยฃ6.7 million.) Total assets at 30.6.12 were ยฃ8.8 million (2011: ยฃ42.95 million; at 31.12.11: ยฃ7.07 million). Net Assets at 30.6.12 were ยฃ0.54 million (2011: ยฃ7 million; at 31.12.11: ยฃ0.48 million).
In the six month period to 30 June 2012, The Healthcare Property Company had revenues of ยฃ 1.4 million and a profit before tax of ยฃ0.04 million. The company had net assets at that date of ยฃ1.8 million.
The second phase of the project at Allesley in Coventry progressed during the period and was completed on 31 August. Development work continues on the project in Bishops Stortford and those in Wales at Buckley, Swansea, Glynneath and Crosshands in partnership with Guafron Healthcare. A number of further potential projects are being pursued.
Since the announcement regarding the demerger of the property company the Board has received considerable interest from a number of potential purchasers. Discussions are now at an advanced stage with one purchaser on terms which if realised, would value the disposal at a price in excess of the current market capitalisation of the Group. Whilst there can be no certainty that these discussions will be completed, nor as to the terms on which any offer may be made, a further announcement will be made as soon as possible. Once achieved, this will allow the Company to focus on the delivery of cancer treatments which is already increasing investor interest.
The Company has a 75% shareholding in Oncotherapy Resources Limited ("ORL"). ORL has an exclusive contract to import a new, electronic brachytherapy device that can deliver single fraction breast radiotherapy, intra-operatively at the time of lumpectomy (IORT) and can be delivered to any location to more easily meet the needs ofย selected cancer patients.
ย It is a truly portable and mobile device that can be delivered, set up and used in the operating theatre and then moved on to the next theatre, centre or hospital to treat those patients with far less safety implications than a machine with a radioactive sourceย thus enablingย patients to have a one off course of radiotherapy closer to their homes.
ย The Xoft Axxent eBx system is now availableย from ORL in the UK and Ireland as a fully managed and delivered service on a cost per patient treated basis enabling the NHS or private sector to more easily adopt the technique now without the need for a capital equipment purchase. The system can also treat skin and gynaecological cancers.
ORL has purchased the first machine which is now in the UK and technicians are being trained to deliver this innovative service. The first patients will be treated at the end of October and both NHS and Private Hospitals have agreements in place.
The Company has also a 28.75% shareholding in Advanced Proton Solutions (Holdings) Limited. Planning consent has been granted for the first development of a proton beam facility in the City of London and there are four other developments being progressed in the United States. Significant progress has been made in procuring funding for these projects and, in the UK, important collaborative agreements are in place with a number of NHS Bodies.
We believe the sale of the Property Development business will enable the Company to invest in its existing specialist cancer treatment services businesses as briefly described above and to realize the operational efficiencies and enhanced shareholder value.
On behalf of the board
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Michael Sinclair
Chief Executive
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Michael Sinclair, Chief Executive | Sandy Jamieson | Jon Levinson Lucy Williams | Simon Hudson Kelsey Traynor |
| Advanced Oncotherapy Plc | Libertas Capital Corporate Finance Ltd | PeterhouseCorporate Finance Ltd | Tavistock Communications |
| 0203 617 8739 | (NOMAD & Joint Broker) | (Joint Broker) | (Financial PR & IR) |
ย | 020 7569 9650 | 020 7469 0935 | 020 7920 3150 |
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Financials
Consolidated statement of comprehensive income | |||||||||
For the period ended 30 June 2012 | |||||||||
Interim | Group | Interim | Group | ||||||
Jun-12 | 2011 | Jun-11 | 2010 | ||||||
ยฃ | ยฃ | ยฃ | ยฃ | ||||||
ย | ย | ย | ย | ย | ย | ย | ย | ย | ย |
Revenue | 1,409,737 | 6,160,695 | 3,002,695 | 1,379,814 | |||||
Cost of sales | (1,229,459) | (5,208,039) | (2,174,939) | (1,179,806) | |||||
Gross Profit | 180,278 | 952,656 | 827,756 | 200,008 | |||||
Administrative expenses | (1,044,824) | (1,624,818) | (919,281) | (1,385,236) | |||||
Fair value adjustment to amounts recoverable on contacts | - | 290,987 | |||||||
Share based payment | 0 | - | |||||||
Development costs written off | - | (300,000) | (504,172) | ||||||
Operating loss | (864,547) | (972,162) | 199,462 | (2,794,455) | |||||
Finance income | - | - | 70 | 149 | |||||
Finance costs | (160,280) | (696,495) | (800,610) | (742,331) | |||||
Loss on ordinary activities before taxation | (1,024,826) | (1,668,657) | (601,078) | (3,536,637) | |||||
Taxation | - | 288,066 | 118,888 | ||||||
Loss after taxation from continuing operations | (1,024,826) | (1,380,591) | (601,078) | (3,417,749) | |||||
Discontinued operations | |||||||||
Loss for the year from discontinued operations | - | (5,349,168) | (757,739) | ||||||
Loss after discontinued operations | (1,024,826) | (6,729,759) | (601,078) | (4,175,488) | |||||
Loss for the period | |||||||||
Attributable to equity shareholders | (1,024,826) | (6,493,894) | (628,786) | (4,094,292) | |||||
Non-controlling interests | - | (235,864) | 27,709 | (81,196) | |||||
(1,024,826) | (6,729,759) | (601,077) | (4,175,488) | ||||||
Other comprehensive income | |||||||||
Exchange differences on translation of foreign operations | - | 56,537 | 444,611 | (332,071) | |||||
Total comprehensive loss for the year net of tax | (1,024,826) | (6,673,222) | (156,466) | (4,507,559) | |||||
Total comprehensive loss attributable to: | |||||||||
Equity shareholders | (1,024,826) | (6,443,011) | (228,636) | (4,393,156) | |||||
Non-controlling interests | - | (230,211) | 72,170 | (114,403) | |||||
(1,024,826) | (6,673,222) | (156,466) | (4,507,559) | ||||||
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Consolidated statement of financial position | |||||||||||||
as at June 2012 | |||||||||||||
Interim | Full Group | Interim | Group | ||||||||||
Jun-12 | 2011 | Jun-11 | 2010 | ||||||||||
ยฃ | ยฃ | ยฃ | |||||||||||
Non-current assets | |||||||||||||
Investment properties | 3,049,357 | 3,049,357 | 32,498,710 | 31,009,083 | |||||||||
Development properties | 1,961,192 | 2,384,258 | 3,459,948 | 3,072,761 | |||||||||
Leasehold improvements | - | 59,176 | 64,087 | ||||||||||
Plant and equipment | 13,431 | 10,160 | 30,638 | 37,951 | |||||||||
5,023,980 | 5,443,775 | 36,048,472 | 34,183,882 | ||||||||||
Current Assets | |||||||||||||
Amounts receivable on contracts | 2,547,887 | 1,123,066 | 5,961,424 | 1,789,648 | |||||||||
Trade and other receivables | 1,245,407 | 483,722 | 903,680 | 759,658 | |||||||||
Cash and cash equivalents | 3,366 | 24,158 | 36,990 | 148,442 | |||||||||
3,796,660 | 1,630,946 | 6,902,094 | 2,697,748 | ||||||||||
Total assets | 8,820,640 | 7,074,721 | 42,950,566 | 36,881,630 | |||||||||
Current liabilities | |||||||||||||
Trade and other payables | (3,974,682) | (2,793,800) | (3,583,542) | (2,617,938) | |||||||||
Borrowings | (4,310,001) | (3,801,871) | (12,995,178) | (7,383,476) | |||||||||
(8,284,683) | (6,595,671) | (16,578,720) | (10,001,414) | ||||||||||
Non-current liabilities | |||||||||||||
Borrowings | - | (19,087,974) | (19,439,878) | ||||||||||
Deferred tax | - | (288,066) | (288,066) | ||||||||||
0 | 0 | (19,376,040) | (19,727,944) | ||||||||||
Total liabilities | (8,284,683) | (6,595,671) | (55,330,800) | (49,457,302) | |||||||||
Net assets | 535,957 | 479,050 | (12,380,234) | (12,575,672) | |||||||||
Equity | |||||||||||||
Share capital | 1,634,104 | 767,541 | 767,541 | 767,541 | |||||||||
Share premium reserve | 1,612,670 | 1,397,500 | 1,397,500 | 1,397,500 | |||||||||
Share option reserve | 557,996 | 557,996 | 557,996 | 557,996 | |||||||||
Reverse acquisition reserve | 11,038,204 | 11,038,204 | 11,038,204 | 11,038,204 | |||||||||
Exchange movements reserve | (388,330) | (388,330) | (39,063) | (439,213) | |||||||||
Accumulated losses | (13,918,687) | (12,893,861) | (6,929,596) | (6,300,810) | |||||||||
Equity attributable to shareholders of the Parent Company | 535,957 | 479,050 | 6,792,582 | 7,021,218 | |||||||||
Non-controlling interests | 0 | 0 | 203,224 | 131,054 | |||||||||
Total equity | 535,957 | 479,050 | 6,995,806 | 7,152,272 | |||||||||
Consolidated statement of cash flows | ย | ||||||||||||
For the period ended 30 June 2012 | ย | ||||||||||||
Interim | Group | Interim | Group | ย | |||||||||
30-Jun-12 | 2011 | 30-Jun-11 | 2010 | ย | |||||||||
ยฃ | ยฃ | ยฃ | ยฃ | ย | |||||||||
Cash flow from operating activities | ย | ||||||||||||
Loss after taxation | (1,024,826) | (6,491,247) | (601,077) | (4,175,488) | ย | ||||||||
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Adjustments: | ย | ||||||||||||
Taxation | 0 | (288,066) | (118,888) | ย | |||||||||
Finance costs | 160,280 | 1,422,876 | 800,609 | 1,607,323 | ย | ||||||||
Finance income | 0 | (403) | (70) | (648) | ย | ||||||||
Net portfolio losses / (gains) | 0 | 5,411,250 | 2,115,068 | ย | |||||||||
Revaluation of developments in progress | (290,987) | ย | |||||||||||
Depreciation | 1,364 | 98,977 | 13,528 | 27,318 | ย | ||||||||
Write-off of development costs incurred | 0 | 300,000 | 504,172 | ย | |||||||||
Share based payments | 0 | 0 | 145,742 | ย | |||||||||
Cash flows from operations before changes in working capital | (863,182) | 453,387 | (77,997) | 104,599 | ย | ||||||||
Changes in amounts recoverable on contracts | (1,103,093) | 666,582 | (4,171,776) | (1,789,648) | ย | ||||||||
Change in trade and other receivables | (761,686) | 37,423 | (144,023) | (247,086) | ย | ||||||||
Change in trade and other payables | 1,104,374 | 89,650 | 839,991 | 362,276 | ย | ||||||||
Cash (used) / generated from operations | (1,623,587) | 1,247,043 | (3,553,805) | (1,569,859) | ย | ||||||||
Interest paid | (83,772) | (1,190,196) | (622,731) | (1,678,472) | ย | ||||||||
Costs associated with disposal of companies | 0 | (257,957) | (1,050,205) | ย | |||||||||
Cash flows from operating activities | (1,707,359) | (201,110) | (4,176,536) | (4,298,536) | ย | ||||||||
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Cash flows from investing activities: | ย | ||||||||||||
Disposal of investment properties | 0 | 28,204,416 | 23,249,001 | ย | |||||||||
Disposal of development property | 0 | 711,124 | 296,497 | ย | |||||||||
Loss on disposal of investment and development property | 0 | (5,029,677) | - | ย | |||||||||
Capital expenditure on investment properties | (0) | - | (115,844) | ย | |||||||||
Capital expenditure on development properties | 101,338 | (322,621) | (349,300) | (82,697) | ย | ||||||||
Purchase of plant and equipment | (1,907) | (11,530) | (3,148) | (8,532) | ย | ||||||||
Interest received | 0 | 403 | 70 | 648 | ย | ||||||||
Cash flows from investment activities | 99,431 | 23,552,115 | (352,378) | 23,339,073 | ย | ||||||||
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Cash flows from operating and investment activities | (1,607,928) | 23,351,005 | (4,528,914) | 19,040,537 | ย | ||||||||
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Cash flows from financing activities: | ย | ||||||||||||
Amounts raised through new equity | 496,889 | - | 742,950 | ย | |||||||||
Development loans | 0 | (1,524,120) | 3,647,932 | 1,524,120 | ย | ||||||||
Repayment of loans | 579,033 | (22,721,550) | (260,517) | (22,084,771) | ย | ||||||||
Directors' loans (net of costs) | 0 | - | 26,816 | ย | |||||||||
Other short term loans | 165,851 | 804,250 | 879,500 | 243,000 | ย | ||||||||
Cash flows from financing activities | 1,241,773 | (23,441,420) | 4,266,915 | (19,547,885) | ย | ||||||||
Decrease in cash and cash equivalents | (366,155) | (90,415) | (261,999) | (507,348) | ย | ||||||||
Cash and cash equivalents at 1 January 2011 | (329,190) | (238,775) | (238,775) | 268,573 | ย | ||||||||
Cash and cash equivalents at 31 December 2011 | (695,345) | (329,190) | (500,774) | (238,775) | ย | ||||||||
Comprising: | ย | ||||||||||||
Cash in accounts | 3,366 | 24,158 | 36,990 | 148,442 | ย | ||||||||
Overdraft in borrowings | (354,294) | (353,348) | (537,764) | (387,217) | ย | ||||||||
Total | (350,928) | (329,190) | (500,774) | (238,775) | ย | ||||||||
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