Sofix Ucits Etf Regulatory News (BGX)

28 Sep 2007 07:02

Bioganix PLC28 September 2007 BIOGANIX PLC ('Bioganix' or 'the Group') 28th September 2007 INTERIM RESULTS Bioganix plc, the AIM listed waste management services group, today announcesits results for the six months ended 30th June 2007 ("the Period"). Commenting on these results, Andrew Walker, Chairman, said: "We are particularlypleased with the progress that has been made in securing and funding the thirdplant at Sharpness. The success of the placing has shown the support that weenjoy from our shareholders and is a further endorsement of our strategy. Significant progress has been made in refining our processes and marketing ourend product fertiliser. The Group is now in a strong position given theincreasing legislative pressures on the waste management industry." Highlights •The Group's financial results for the Period are in line with expectations. •During the Period the Group raised approximately £2.24 million after expenses from a placing of 1,659,311 new ordinary shares. •The planning and lease arrangements for the new Sharpness plant were agreed during the Period and construction is now underway. •Significant improvements have been made to the Suffolk plant's composting equipment which have enhanced productivity and reliability. •Odour Management systems at the Suffolk plant have been further refined and the number of odour related issues (as previously reported) has declined significantly. The directors are pleased with progress made in this area. •More gate fee material has been sourced from Suffolk County Council. •The DEFRA New Technology Demonstrator Programme ("NTDP") has continued to deliver useful results and has provided a platform for presenting the Bioganix system to local authorities and other potential customers. •The results of recent field trials using Bioganix compost fertiliser have been most encouraging and compost sales prices have risen during the Period. Contacts: Nick Helme 01568 619115Managing Director - Bioganix Plc Julian Morgan 01568 619101Finance and Commercial Director - Bioganix Plc Mike Coe 0117 933 0020Blue Oar Securities Plc Tom Cooper / Paul Vann 020 7256 9445Winningtons Financial 07768 807 631 CHAIRMAN'S STATEMENT Financial Performance The Group's financial results are consistent with expectations. Turnover for thesix months ending 30th June 2007 was £1,014,081 compared with £826,681 for theperiod ending 30th June 2006 and £1,600,626 for the full 2006 year. Pre-taxlosses for the Period were £512,869 compared with profits of £8,038 for thecomparable period in 2006 and pre-tax losses of £65,782 for the full 2006 year.Cash generated from operations during the Period was £103,548 compared with£258,138 for the 6 months to 30 June 2006. The Net assets at 30th June 2007 were£3,964,130 (30th June 2006 net assets were £4,494,429). The attached interim financial statements for the six months ended 30 June 2007have been prepared for the first time in accordance with IFRS and are covered byIFRS1, First-time Adoption of IFRS. Where necessary, comparative figures,previously reported under UK GAAP, have been restated for the transition toIFRS. Funding During the Period the Group raised £2.24 million (net of costs) from a placingof 1,659,311 new ordinary shares primarily to provide the equity content of thefunding required for the Sharpness plant. The funds from this placing were notreceived until after the Period end. As at 30th June 2007, the Group had anoverdraft of £430,989 and had asset related borrowings of £161,369. Funding forthe Sharpness plant will be supplemented by a WRAP capital grant, and thebalance of funding, after the new equity input, will be from agreed new bankingfacilities and asset funding under the WRAP EQUIP scheme. Activities Turnover growth primarily reflects gate fee and tonnage increases at the Suffolkplant. The losses made in the Period are primarily a function of themodifications to composting vessels and odour management systems and operationaldowntime at the Suffolk Plant as well as the large increases in fuel andelectricity prices that were referred to in the Chairman's Statement thataccompanied the Group's results for the year ended 31 December 2006. Newelectricity prices, approximately 40% lower than those being charged up to June30th 2007, were agreed during the Period. These have applied from July 1st 2007. Wharton (Herefordshire) Plant The Wharton plant has continued to be used to conduct research work for DEFRAunder the NTDP programme. As a consequence the Group has had the opportunity topresent the Bioganix composting solution to a number of local authorityvisitors. Crop growing experiments have continued with very satisfactoryresults. In particular, spring fertilising of winter wheat crops with theBioganix product gave rise to yields which were 17% greater than yields fromthose crops treated with normal levels of conventional chemical fertiliser. Parham (Suffolk) Plant The overall volumes of material processed at the Suffolk plant have growncompared with the 6 months to 31 December 2006 although tonnage from onecustomer has been below contracted levels. Under the terms of these contracts,compensation for under delivery is payable to Bioganix by the customerconcerned. Contractual negotiations are underway regarding this issue. SuffolkCounty Council has recently asked Bioganix to process additional green and kitchen waste from another Suffolk borough. As previously reported, a programme of upgrade work on the composting barrels was completed during the Period. As anticipated this work compromised the Suffolk plant's profit during the Period and contributed to the overall loss during the 6 months to 30 June 2007. Work has also been carried out on refining and improving the Plant's odour control systems; whilst this has involved considerable initial cost, the systems have now been modified to deliver enhanced performance and reduced operating costs. The directors are now satisfied that the odour management systems at the Plant are operating much closer to optimal levels and that the plant's environmental performance has greatly improved with a significant reduction in the number of odour issues. The directors view this as a positive achievement that demonstrates the Group's ability to build and run plants that satisfy current and anticipated regulatory requirements. Compost sales and marketing The Group continues to develop the market for Bioganix compost fertiliser withan increasing trend in the average price obtained for compost product. Thesuccessful crop trials at Wharton and the increasing costs of artificialfertiliser, as a result of increasing energy prices, have reinforced theeconomic advantage of the Bioganix compost fertiliser. Bioganix is movingtowards gaining certification under the Compost Association's PAS100 standard.The Suffolk plant is now licensed to produce agricultural fertiliser under theFertiliser Industry Assurance Scheme. The directors are confident of increaseddemand for high quality nutrient rich compost fertiliser, such as produced byBioganix, especially in the light of rapidly rising fertiliser prices andincreasing awareness of climate change and fossil fuel issues. Sharpness (Gloucestershire) plant As previously reported, the planning permission for the Sharpness plant wasgranted in January 2007 and the lease for the premises was signed on June 13th2007. Since then the Group has ordered the necessary plant and equipment and hasbeen undertaking initial construction work at the site. The Group'ssub-contractors have started construction of the composting vessels and thefirst of these is due to be delivered to Sharpness in November. The directorsare in discussion with a number of potential providers of gate fee material. Outlook Both the Wharton and Parham plants are continuing to operate at high levels ofreliability. Volumes at Wharton have remained high despite material beingaffected by the very wet summer weather and flooding in Herefordshire, whichcaused some operational difficulties and additional costs. Volumes at Parhamhave been lower than expected in the second half of the year, though this is duewholly to the shortfall in contracted levels of supply by one customer, referredto above; full-year results will be affected by the outcome of the negotiationswith this customer. The Sharpness plant is expected to start production in early2008 and thus will not make any contribution to turnover or profit during thecurrent year. The £8 per tonne increase in Landfill tax announced in the last'Budget' and its continuing escalation in future years, appears to havestimulated strong further interest from both commercial and Local Authoritycustomers and also provides a very firm base to gate fees in the future. Andrew WalkerChairman 28 September 2007 CONSOLIDATED INCOME STATEMENT OF BIOGANIX PLC FOR THE SIX MONTHS ENDED 30 JUNE 2007 6 months ended Year to 31 6 months ended 30 June 2007 December 2006 30 June 2006 (unaudited) (audited and (unaudited and restated) restated) £ £ £ GROUP REVENUE 1,014,081 1,600,626 826,681 Cost of sales (722,915) (1,013,399) (354,766) ----------- ---------- -----------Gross profit 291,166 587,227 471,915 Distribution costs (141,927) (196,925) (53,823) Administrative expenses (761,186) (876,795) (389,799) Other operating income 109,454 426,200 - Finance income 2,551 21,298 2,481 Finance expenses (12,927) (26,787) (22,736) ----------- ---------- -----------(LOSS)/PROFIT BEFORETAXATION (512,869) (65,782) 8,038 ----------- ---------- ----------- Income tax received - 24,038 - ----------- ---------- -----------(LOSS)/PROFIT FOR THEFINANCIAL PERIOD (512,869) (41,744) 8,038 ----------- ---------- ----------- Basic (loss) / earnings per share (7.94p) (0.97p) 0.35p There were no recognised gains or losses other than the profit or loss for theabove financial periods. None of the Group's activities were acquired ordiscontinued during the six months to 30th June 2007. Consolidated Statement of Changes in Equity for the six months ended 30th June2007 6 months ended Year to 31 6 months ended 30 June 2007 December 2006 30 June 2006 (unaudited) (audited and (unaudited and restated) restated) £ £ £ Balance at start ofperiod as originallystated under UK GAAP 4,467,992 (736,202) (736,202)Change of accountingpolicy to comply with IFRS (2,201) - - ---------- ---------- -----------Restated balances atstart of period 4,465,791 (736,202) (736,202) (Loss) / Profit for theperiod (2006: as restated) (512,869) (41,744) 8,038Share options reserve 11,208 24,291 -Issue of newshares - 645,825 645,825Premium on issue of newshares - 4,573,621 4,576,768 ---------- ---------- -----------Restated balances atend of period 3,964,130 4,465,791 4,494,429 ---------- ---------- ----------- CONSOLIDATED BALANCE SHEET OF BIOGANIX PLC AS AT 30th JUNE 2007 30 June 31 December 30 June 2007 2006 (audited 2006 (unaudited) and restated) (unaudited and restated) £ £ £ASSETSNon-current assetsProperty, plant and equipment 6,412,156 5,427,930 4,661,091Intangible assets 53,636 71,515 - --------- --------- ---------Total non-current assets 6,465,792 5,499,445 4,661,091 --------- --------- --------- CURRENT ASSETSInventories 35,400 32,213 159,981Debtors 403,192 373,759 300,528Cash at bank - 141,886 1,011,134 --------- --------- ---------Total current assets 438,592 547,858 1,471,643 --------- --------- --------- --------- --------- ---------Total Assets 6,904,384 6,047,303 6,132,734 --------- --------- --------- EQUITIES AND LIABILITIESEquity attributable to equityholders of the companyShare capital 645,836 645,836 645,834Other reserves 4,609,120 4,597,912 4,576,771Retained losses (1,290,826) (777,957) (728,176) --------- --------- ---------Total Equity 3,964,130 4,465,791 4,494,429 --------- --------- --------- Non-current liabilitiesLong-term borrowings 133,610 166,559 161,369Long-term property lease 768,000 - -Long-term grant 749,963 799,963 849,963 --------- --------- ---------Total non-current liabilities 1,651,573 966,522 1,011,332 --------- --------- --------- Current liabilitiesTrade and other payables 660,525 396,784 411,295Short-term borrowings 496,156 118,206 115,678Short-term property lease 32,000 - -Short-term grant 100,000 100,000 100,000 --------- --------- ---------Total current liabilities 1,288,681 614,990 626,973 --------- --------- --------- --------- --------- ---------TOTAL EQUITY AND LIABILITIES 6,904,384 6,047,303 6,132,734 --------- --------- --------- CONSOLIDATED CASHFLOW STATEMENT OF BIOGANIX PLC FOR THE SIX MONTHS ENDED 30 JUNE 2007 30 June 31 December 30 June 2007 2006 (audited 2006 (unaudited) and restated) (unaudited and restated) £ £ £ (Loss) / Profit before incometax (502,493) (60,293) 28,293Adjustments for:Depreciation 388,991 523,119 173,049Changes in working capital(excluding the effects ofacquisitions):Inventories (3,187) 57,992 (69,776)Trade and other receivables (29,433) (138,044) (4,968)Trade and other payables 238,462 296,970 131,540Other provisions 11,208 24,291 - ---------- ----------- -----------Cash generated from operations 103,548 704,035 258,138 ---------- ----------- ----------- Income tax received - 83,883 57,818 ---------- ----------- -----------Net cash from operations 103,548 787,918 315,956 ---------- ----------- ----------- Cash flows from investingactivitiesFinance income received 2,551 21,298 2,481Finance expenses (62,927) (126,826) (22,736)Purchase of property, plantand equipment (555,338) (4,181,411) (3,182,977)Investment in intangible fixedassets - (109,989) - ---------- ----------- -----------Net cash used in investingactivities (615,714) (4,396,928) (3,203,232) ---------- ----------- ----------- Cash flows from financingactivitiesRepayment of finance leases (10,138) (7,175) -Repayment of bank loans (50,571) (111,142) (55,571)Issue of equity share capital - 6,263,573 6,263,573Repayment of convertibleunsecured loan notes - (1,760,406) (1,760,406)Expenses incurred in connection with new shares - (532,056) (528,908)Repayment of amounts owed togroup undertakings - (1,081,620) (1,000,000)Interest on loan notes - (512,072) (512,072)New grants received - 1,000,000 1,000,000 ---------- ----------- -----------Net cash used in financingactivities (60,709) 3,259,102 3,406,616 ---------- ----------- ----------- ---------- ----------- -----------Net (decrease) /increase in cashand cash equivalents (572,875) (349,908) 519,340 ---------- ----------- ----------- Cash and cash equivalents atbeginning of period 141,886 491,794 491,794 Cash and cash equivalents atend of period (430,989) 141,886 1,011,134 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS OF BIOGANIX PLC FOR THE SIX MONTHS ENDED 30 JUNE 2007 1. Adoption of International Financial Reporting Standards (IFRS) For all periods up to 31 December 2006 Bioganix plc has prepared its financialstatements in accordance with UK Generally Accepted Accounting Principles (UKGAAP). AIM Rules require that the annual consolidated financial statements ofBioganix plc for the year ended 31 December 2007 be prepared in accordance withInternational Financial Reporting Standards (IFRS). Accordingly, these interim financial statements which are for the six monthsending 30 June 2007, have been prepared for the first time in accordance withIFRS and are covered by IFRS1, First-time Adoption of IFRS. The information presented within these interim financial statements is incompliance with IAS34 'Interim Financial Reporting'. In preparing these interim financial statements the comparative figurespreviously reported under UK GAAP have been restated for the transition to IFRS.The disclosures required by IFRS1 regarding the transition for the relevantperiods are given in Note 3 below. Other than changes to accounting policies asa result of the adoption of IFRS, the same accounting policies have beenfollowed in the interim financial statements as compared with the most recentannual financial statements. 2. Earnings per ordinary share The calculation of the basic earnings per ordinary share is based on the resultfor the Period, for continuing operations as well as total acquisitions, and theweighted average number of shares in issue during the period. 30 June 31 December 30 June 2007 2006 2006 (unaudited) (audited) (unaudited) Weighted average number ofordinary shares in issue 6,458,355 4,309,223 2,283,619 Dilutive potential ordinaryshares: Employee ShareOptions 475,792 315,123 164,420 (Loss) / Profit after tax (512,869) (41,744) 8,038 Basic (loss) / earnings pershare - pence per share (p) (7.94p) (0.97p) 0.35p Diluted (loss) / earnings pershare - pence per share (p) (7.94p) (0.97p) 0.33p There are potentially dilutive employee share options of 475,792 in existence at30 June 2007 (30 June 2006: 164,420) which relate to share options granted toemployees where the exercise price is less than the average market price of theCompany's ordinary shares during the period. These are not dilutive at present. 3. Transition from UK GAAP to IFRS As required under IFRS1, the equity reconciliations at 1 January 2006 (thetransition date for IFRS) and at 31 December 2006 (date of last UK GAAPfinancial statements) are set out below. For comparative purposes, the equityreconciliation at 30 June 2006 is also included to enable comparison with the2007 published interim figures. The net effect of adopting IFRS rather than the UK GAAP for the year ending 31December 2006 is to increase total assets from £5,976,679 to £6,047,303 due tothe capitalisation of leases. This change also has the effect of slightlyincreasing the loss on ordinary activities for the year from £39,543 to £41,744. Reconciliation of UK GAAP equity to IFRS equity: 31 December 30 June 1 January 2006 2006 2006 £ £ £ Capital and reserves accordingto UK GAAP 4,467,992 4,494,429 (736,202) Effect of adopting IAS17 -Leases (2,201) - - ------------ ----------- -----------Equity according to IFRS 4,465,791 4,494,429 (736,202) ------------ ----------- ----------- Reconciliation of UK GAAP balance sheets to IFRS balance sheets: As at 31 December 2006 As at 30 June 2006 As previously Effect of As restated As previously Effect of As restated reported under trans-ition under IFRS reported under trans-ition under IFRS UK GAAP UK GAAP £ £ £ £ £ £ASSETSNon-currentassetsProperty,plant andequipment 5,357,306 70,624 5,427,930 4,661,091 - 4,661,091 Othertangible 71,515 - 71,515 - - -assets --------- ------- -------- --------- ------ --------Totalnon-currentassets 5,428,821 - 5,499,445 4,661,091 - 4,661,091 --------- ------- -------- --------- ------ -------- CurrentAssetsInventories 32,213 - 32,213 159,981 - 159,981 TradeReceivables 373,759 - 373,759 300,528 - 300,528 Cash andcash 141,886 - 141,886 1,011,134 - 1,011,134equivalents --------- ------- -------- --------- ------ --------Totalcurrent 547,858 - 547,858 1,471,643 - 1,471,643assets --------- ------- -------- --------- ------ -------- Total Assets 5,976,679 70,624 6,047,303 6,132,734 - 6,132,734 --------- ------- -------- --------- ------ -------- EQUITY ANDLIABILITIESEquityattributableto equityholders ofthe parentShare 645,836 - 645,836 645,834 - 645,834capital Share 4,573,621 - 4,573,621 4,576,771 - 4,576,771premium Other 24,291 - 24,291 - - -reserves Retainedearnings (775,756) (2,201) (777,957) (728,176) - (728,176) --------- ------- -------- --------- ------ --------Total equity 4,467,992 (2,201) 4,465,791 4,494,429 - 4,494,429 --------- ------- -------- --------- ------ -------- Non-currentliabilitiesLong-termborrowings 115,678 50,881 166,559 161,369 - 161,369 Long-termGovernmentGrants 799,963 - 799,963 849,963 - 849,963 --------- ------- -------- --------- ------ --------TotalNon-currentliabilities 915,641 50,881 966,522 1,011,332 - 1,011,332 --------- ------- -------- --------- ------ -------- CurrentliabilitiesTrade andother 396,784 - 396,784 411,295 - 411,295payables Short-termGovernmentGrants 100,000 - 100,000 100,000 - 100,000 Currentportion oflong-termborrowings 96,262 21,944 118,206 115,678 - 115,678 --------- ------- -------- --------- ------ --------Totalcurrent 593,046 21,944 614,990 626,973 - 626,973liabilities --------- ------- -------- --------- ------ -------- --------- ------- -------- --------- ------ --------Totalliabilities 1,508,687 72,825 1,581,512 1,638,305 - 1,638,305 --------- ------- -------- --------- ------ -------- Total equityandliabilities 5,976,679 70,624 6,047,303 6,132,734 - 6,132,734 --------- ------- -------- --------- ------ -------- Reconciliation of UK GAAP income statements to IFRS income statements: As at 31 December 2006 As at 30 June 2006 As previously Effect of As restated As previously Effect of As restated reported under transition under IFRS reported under transition under IFRS UK GAAP UK GAAP £ £ £ £ £ £ Revenue 1,600,626 - 1,600,626 826,681 - 826,681 Cost of Sales (1,016,293) 2,894 (1,013,399) (354,766) - (354,766) -------- ------- -------- ------- ------- --------Gross Profit 584,333 2,894 587,227 471,915 - 471,915 -------- ------- -------- ------- ------- -------- Other income 426,200 - 426,200 - Distributionexpenses (196,925) - (196,925) (53,823) - (53,823) Administrativeexpenses (876,795) - (876,795) (389,799) - (389,799) Finance income 21,298 - 21,298 2,481 - 2,481 Financeexpenses (21,692) (5,095) (26,787) (22,736) - (22,736) -------- ------- -------- ------- ------- --------(Loss) /profit beforetax (63,581) (2,201) (65,782) 8,038 - 8,038 -------- ------- -------- ------- ------- -------- Taxation 24,038 - 24,038 - - - -------- ------- -------- ------- ------- --------(Loss) /profit for theperiod (39,543) (2,201) (41,744) 8,038 - 8,038 -------- ------- -------- ------- ------- -------- (Loss) /profit pershare (0.92)p (.05p) (0.97p) 0.35p - 0.35p 4. Business Combination On 28th April 2006 Bioganix plc completed the purchase of the entire sharecapital of Bioganix Composting Limited. The Business Combination has beenaccounted for as a reverse acquisition in accordance with IFRS 3. 5. Segmental reporting The group operates in one business segment, that of the provision of wastemanagement services, and in one geographic segment, within the UK. Accordinglyno segmental analysis is required. 6. Taxation Due to the Company's losses, no taxation charge has arisen for the period. 7. Interim Dividend The directors have not declared an interim dividend. 8. Interim Financial Statements The financial statements for the six months ended 30 June 2007 were approved bythe Board of Directors on 26th September 2007. These financial statements do notconstitute statutory accounts within the meaning of the Companies Act 1985 andare neither reviewed nor audited. 9. Copies of Statement Copies of this statement are available to shareholders and members of thepublic, free of charge, from the Company's registered office at Wharton Court,Leominster, Herefordshire, HR6 0NX. Ends This information is provided by RNS The company news service from the London Stock Exchange