ENGI.L Regulatory News (ENGI)

18 Aug 2005 11:24

Billam PLC18 August 2005 Billam Plc Interim Report For the six months ended 30 June 2005 The Board of Billam Plc ("Billam" or "The Company"), the investment companyspecialising in businesses operating in fast growing markets announces itsunaudited interim results for the six months to 30 June 2005. The past six months have been a period of consolidation as well as a change ofemphasis for Billam as its investee companies continued to build theirbusinesses. In particular, I would like to identify notable achievements in thefollowing portfolio companies: o Arakis announced the largest ever licensing deal achieved by a British biotech company when its AD237 drug was licensed to Novartis. The total value of the deal could be $175 million. o Cybit won several major new contracts with a sales value in excess of £1m. It announced its final results showing 10% growth in sales with 50% increase in customers. o Intellego's first results since floating on AIM showed sales increasing by 86% and gross margins advancing to 66% from 58%. o EiRx Therapeutics announced its first contract with a top 10 pharmaceutical company, Merck. However, Billam's asset value is increasingly dependent upon the shareperformance of its investee companies, and the Company's asset value hasunderperformed the indices. For example, in the case of Cybit we believe itreflects sentiment to the telematics sector rather than the company'sperformance, which has been strong. In others, in common with many smallerquoted businesses, the market takes time to reflect true value and majorfluctuations in share prices can belie underlying progress. Whilst this type of market fluctuation has affected Billam's quoted shares andcaused a reduction in Net Asset Value (NAV), your Board believes that theinvestee companies will strengthen and develop into significant businesses witha wider shareholder base, thereby reducing their vulnerability to such marketvolatility. Share consolidation The share consolidation and subdivision was approved by shareholders and the new20 pence shares were issued in April. The shares generated by these actions wereall placed at the prevailing price immediately following the transaction and itis disappointing that the share price has not performed better. However, therehas been some recovery since mid-June. I would like to thank shareholders fortheir support over this period. Changes to the Company Your Company has evolved over the past five years and much of its unquotedportfolio has been converted to quoted. A total of 17 investments have beenmade, four have been sold and three written off. The remaining portfolioconsists of five quoted and five unquoted businesses. The next stage is to growthe intrinsic value of each of the companies over the medium term and thus thevalue of the portfolio. We will also selectively make new investments to becomea significant shareholder in a small number of high growth businesses. It is nowappropriate to make changes to the Company as follows: BoardSimon Bennett has been appointed as a Director. Mr Bennett has extensiveexperience in the mid and small cap company sector. He has over 20 years ofinvestment banking experience having worked at Citigroup and Credit LyonnaisSecurities, where he was formerly the Head of the Mid and Small cap companiesteam. He is a Chartered Accountant.Juliet Hoskins who joined the Board in 2000 when the Company was launched as aninvestment business, resigned today,18 August 2005 as a director. We thank herfor her contribution and wish her well for the future. BrokerThe Company now retains a sole broker - KBC Peel Hunt Limited. Outlook Despite the market fluctuations mentioned above, Billam's portfolio hascontinued to develop, and since 30 June Arakis Limited has received an offerfrom Sosei Limited, a quoted Japanese biopharmaceutical company valuing Arakisat £106 million. This compares with a valuation of £30 million when Billamacquired its Arakis shares in March 2004. This is a further validation ofBillam's business model. Victor BeamishChairman Consolidated statement of total return (unaudited) Six months to 30 June Six months to 30 June Year to 31 December 2005 2004 2004 Capital Revenue Total Capital Revenue Total Capital Revenue Total £000 £000 £000 £000 £000 £000 £000 £000 £000 Realised(losses)/gainson investments (347) - (347) (326) - (326) (192) - (192)Net change inunrealisedinvestments (2,884) - (2,884) (1,681) - (1,681) (3,879) - (3,879)Income - 20 20 - 21 21 - 60 60 Gross Return (3,231) 20 (3,211) (2,007) 21 (1,986) (4,071) 60 (4,011) Administrativeexpenses (270) (270) - (304) (304) - (622) (622)Interestpayable - (1) (1) - (2) (2) - (3) (3) Return beforetaxation (3,231) (251) (3,482) (2,007) (285) (2,292) (4,071) (565) (4,636) Provision fortaxation - - 336 - 336 764 (428) 336 Return aftertaxation (3,231) (251) (3,482) (1,671) (285) (1,956) (3,307) (993) (4,300) Transfer toreserves (3,231) (251) (3,482) (1,671) (285) (1,956) (3,307) (993) (4,300) Return perordinary share(p) (note 4) (32.1) (2.5) (34.6) (20.6) (3.6) (24.2) (36.8) (11.1) (47.9) Consolidated balance sheet as at 30 June 2005 (unaudited) 30 June 30 June 31 December 2005 2004 2004 £'000 £'000 £'000Fixed assetsInvestments 4,916 9,694 7,864 --------- --------- --------- 4,916 9,694 7,864 --------- --------- --------- Current assetsDebtors 155 196 201Cash at bank and in hand 39 165 47 --------- --------- --------- 194 361 248 Creditors: amounts falling due within oneyear (150) (513) (57) --------- --------- --------- Net current assets / (liabilities) 44 (152) 191 --------- --------- --------- Total assets less current liabilities 4,960 9,542 8,055Creditors: amounts falling due after morethan one year (953) (783) (912) Total net assets 4,007 8,759 7,143 ========= ========= ========= Financed by:Called up share capital 2,170 1,775 2,170Share premium account 5,389 5,056 5,389Capital reserve realised (1,304) (1,198) (957)Capital reserve unrealised (924) 3,491 1,614Merger reserve 1,736 1,736 1,736Revenue account (3,060) (2,101) (2,809) --------- --------- --------- Shareholders' funds 4,007 8,759 7,143 --------- --------- --------- Total shareholders' funds are attributable to: Equity interests - ordinary shareholders'funds 3,849 8,601 6,985Non equity interests 158 158 158 --------- --------- --------- 4,007 8,759 7,143 ========= ========= ========= Net asset value pence per share (note 7)Ordinary shares 38.3 106.4 69.4Deferred shares 0.1 0.1 0.1 Six months to Six months to Year ended 30 June 2005 30 June 2004 31 December £000 £000 2004 £000 Net cash outflow from operatingactivities (70) (88) (699)Net cash outflow from returns onservicing finance (1) (2) (3)Net cash outflow from investment (16) (356) (929)Net cash inflow from sale ofinvestments 79 453 792New cash inflow from financing - - 728 --------- --------- ---------Decrease/increase in cash for theperiod (8) 7 (111) ========= ========= ========= Consolidated cash flow statement (unaudited) Notes: 1. Basis of preparationThe unaudited interim results have been prepared on the basis of the accountingpolicies set out in the statutory accounts of the Company for the year ended 31December 2004. 2. ComparativesComparatives are shown for the six months to 30 June 2004 and year to 31December 2004. Following the share consolidation and subdivision carried out on 8 April 2005,par value of the Ordinary shares became 20p. In notes 4 and 7 the comparativeshave been restated to 20 pence share equivalents. 3. Results for the year ended 31 December 2004The results for the year ended 31 December 2004 are a non-statutory version ofthe full report and accounts for that year, which have been filed with theRegistrar of Companies on which the auditors reported under Section 235 of theCompanies Act 1985. The report contained no qualifications, in respect of theyear ended 31 December 2004, or any statement under Section 237(2) or (3) of thesaid Act. 4. ReturnsReturns per Ordinary Share are based on the weighted average number of ordinaryshares in issue during the period 10,060,000 Ordinary and 157,950,000 deferredshares in issue (year to 31 December 2004 restated 8,972,962 Ordinary and157,950,000 deferred shares/period to 30 June 2004 restated 8,086,156 Ordinaryand 157,950,000 deferred shares). 5. TaxationNo tax provision was considered necessary on the unrealised loss. 6. DividendsThe Directors do not recommend the payment of an interim dividend. 7. Net asset value per shareNet asset value per Ordinary Share is based on the net assets attributable toOrdinary shareholders at the period end and 10,060,000 Ordinary and 157,950,000deferred shares in issue at the period end (at 31 December 2004: 10,059,840Ordinary and 157,950,000 deferred shares/at 30 June 2004: restated 8,086,156Ordinary and 157,950,000 deferred shares). Copies of this announcement will be available for collection, free of charge,from Billam's offices, 32 Clerkenwell Green, London EC1R 0DU for a period of onemonth from the date of this announcement This information is provided by RNS The company news service from the London Stock Exchange