DMTR.L Regulatory News (DMTR)

15 September 2016

Cronin Group Plc

("Cronin" or the "Company")

Interim results for the six months ended 30 June 2016

Cronin Group Plc ("the Company") the AIM listed company with a business activity of the digitization of chemical space coupled with innovative chemical drug discovery, announces its unaudited half year results for the period ended 30 June 2016.

Highlights:

· Substantive progress in further developing the Company's strategic roadmap to digitize chemistry

· Steve Coles joined the Company from main list Mears Group plc as Chief Technology Officer

· Loss of £0.31 million after tax (2015 first half: loss £0.43 million including £0.38 million attributable to discontinued operations)

· Cash and short term deposits at 30 June 2016 of £ 5.10 million (31 December 2015: £5.42 million)

· Net assets at 30 June 2016 of £ 9.32 million (31 December 2015: £9.63 million)

James Ede-Golightly, Chairman, said: "We continue to build on the principles of the Chemputer ™prototypes developed by the Research Group and are progressing first opportunities to commercialise products facilitated by the digitization of chemistry, confident that this will present a multiple range of opportunities to commercialise and add value for shareholders in the medium term".

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

CHAIRMAN'S STATEMENT

During the six months to 30 June 2016 (the Reporting Period") and in the current half year to date, the Cronin Group Plc and its subsidiary Cronin3D Limited ("the Group") has made substantive progress in further developing the Company's strategic roadmap to digitize chemistry. During the past six months the Company has strengthened its fundamental research and technical proof of concept work with evaluation of complementary commercial and partnering opportunities addressable within the medium term.

The Group's ultimate vision is to commercialise the Chemputer™, an autonomous universal digital synthesis engine, which intends to open up chemistry to a wider user-base via digitization. This will allow chemical synthesis to be flexible and widely accessible irrespective of access to physical infrastructure and chemical knowledge. By way of its Research Agreement with the Glasgow University research team ("the Research Group") led by Professor Lee Cronin, the Group has continued to progress development of a number of Chemputer™ prototype systems and exemplify the applicability of digitizing chemistry, for example by successfully manufacturing small molecules using a digital code that could allow reproducible processes not achievable easily by other means.

In consultation with Professor Cronin and the Group's Advisory Board, which as reported previously was constituted in March 2016 to review, evaluate and advise on the commercial and technical activities of the Group, the Company is currently progressing product specifications that will build on the principles of chemistry, automation and intelligence engendered in the Chemputer™ prototype systems produced by the Research Group. Underpinned by the premise of the digitization of chemistry, the Company is implementing a software and hardware framework that will ensure we secure a leadership position in chemistry big data which we believe will have significant value.

Over and above near term applications envisaged by the Group, further, longer term commercial applications enabled by the Chemputer™ have been covered in the media during the Reporting Period. For example, ahead of this year's Farnborough International Airshow, Professor Cronin, as Regius Professor of Chemistry at the University of Glasgow and Founding Scientific Director at Cronin Group PLC, was reported to be exploring with engineers and scientists at BAE Systems how development of the Chemputer™ will eventually lead to the digital programming of complex chemical and material systems. On the basis of engagement like this initiated by Professor Cronin, the Group is involved in a number of discussions with other blue chip companies which would envisage access to the Group's products and IP.

During the Reporting Period Steve Coles joined the Company from main list Mears Group plc as Chief Technology Officer. Steve is leading development of the Group's commercial grade products, including integrated precursors to the Chemputer™ system. He has over 20 years of technical development experience, where he has been central to the development and commercialisation of integrated software and hardware in the chemistry and biology arenas. Steve is an expert in developing high performance, integrated, multi-tier, data environments.

Financial Review

The Group incurred a loss after tax of £0.31 million for the half year ended 30 June 2016 (2015 first half: loss of £0.43 million including loss from discontinued operations of £0.38 million), which mainly reflects our continued research and development expenditure in this period.

Net cash outflows of £0.33 million during this first six months reduced cash balances to £5.10 million at 30 June 2016 compared with cash balances at 31 December 2015 of £5.42 million.

Outlook

The concept of the Chemputer™ exemplifies a new approach to chemistry that combines software, hardware that will drive the digitization of chemistry allowing the digitally-driven manufacturing of chemicals and algorithm-driven discovery of new targets, leading to a step change in reproducibility and digital collaboration.

We continue to build on the principles of the Chemputer ™prototypes developed by the Research Group and are progressing first opportunities to commercialise products facilitated by the digitization of chemistry, confident that this will present a multiple range of opportunities to commercialise and add value for shareholders in the medium term.

James Ede-Golightly

Non-executive Chairman

15 September 2016

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS TO 30 JUNE 2016

The six months ended 30 June 2015 figures have been re-presented to reflect the income and expenses of discontinued operations as a separate single line item.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2016

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

Note: Copies of the Half Year Interim Report

The half year interim report for the six months ended 30 June 2016 is available on the Company's website: www.croningroupplc