Gunsynd Regulatory News (GUN)

Evocutis plc

("Evocutis" or the "Company")

Final results for the year ended 31 July 2014

Chairman's Report

Overview

This has been an eventful year for the Company which has seen the transition from a trading company to an investing company.

During the first eight months of the financial year, the Company was focussed on disposing of its intellectual property assets and in closing down its trading operations in Wetherby. These activities were concluded in March 2014 with the sale of LabSkinTM, SYN1113 and other related intellectual property to Venn Life Science Holdings plc. The sale provided for an element of contingent consideration relating to a stake in any future commercialisation of the intellectual property by Venn in the form or royalties paid on revenues generated from those assets.

Following the cessation of trading operations, the Company has been an investing company. The Company's principal assets are a cash balance and available-for-sale investments in the form of shares in Venn Life Science Holdings plc.

The Board

Following our shareholder meeting on 12 September 2014, the directors who previously managed the trading operation of the Group stepped down from the board and myself, along with Donald Strang and Hamish Harris were appointed to take responsibility for the future direction of the Company.

Events Subsequent to year end

On 12 September 2014, shareholders approved a capital reorganisation, resulting in each of the Company's existing ordinary shares being subdivided into one new Ordinary Share of 0.01p and one Deferred Share of 0.99p.

Additionally, on 15 September 2014, the Company issued 175,000,000 new Ordinary Shares of 0.01p each for cash consideration of £210,000 (before expenses). The new shares will rank equally in all respects with the existing shares.

On the same date, the Company adopted a new investing policy under AIM Rule 15 and there were a number of board changes as disclosed in the Report of the Directors.

On 8 December 2014, the Company issued 375,000,000 new Ordinary Shares of 0.01p each for cash consideration of £1,500,000 (before expenses). The new shares will rank equally in all respects with the existing shares. Each new Ordinary Share carries a warrant which entitles the holder to subscribe for a further one new ordinary share in the Company at 0.4 pence per share up to 31 December 2015.

On 18 December 2014, the Company announced that it has signed a Binding Term Sheet ("BTS") to acquire an initial 10% interest in Brazil Tungsten Holdings Limited ("BTHL") which owns a 25 year lease over (with the option to extend) the producing Bodó Tungsten Mine in Rio Grande do Norte, Brazil, by investing US$1 million in new capital in BTHL for the specific purposes of mine expansion. The Company will acquire the 10% interest by subscribing for new shares that represent a 10% shareholding in BTHL. The Company also has an exclusive option to increase its holding in BTHL to 20% within 60 days by investing a further US$1 million towards mine expansion, subject to certain conditions to be advised.

Financial review

Continuing operations

The continuing operations of the Company relate to its investing activities and to its status as an AIM-listed public company. The Company incurred administrative expenses associated with operating as a public company and these totalled £127,000 for the year (2013: £190,000).

On 19 March 2014, the Company acquired shares in another AIM listed public company, by way of the consideration for the disposal of our LabSkinTM and SYN1113 assets. These shares are accounted for as "Available-for-sale investments". At 31 July 2014, the Directors have assessed the valuation of those shares by reference to the quoted bid price and as a result have recorded an impairment loss on that investment of £72,000 (2013: not applicable) within the statement of profit or loss to reflect the fall in the published share price.

Overall, the Company made a loss of £197,000 (2013: £182,000) from continuing operations. No income tax has arisen due to the losses sustained (2013: £nil).

Discontinued operations

During the year the Company ceased its scientific trading operations and shut down its trading site in Wetherby. All operational and administrative staff employed at that site were made redundant. The Company's LabSkinTM and SYN1113 intangible intellectual property assets, along with certain property, plant and equipment assets were sold to Venn Life Science Holdings plc on 19 March 2014.

The financial results from that trade are presented within discontinued operations. The comparative figures for the year ended 31 July 2013 have been restated to enable comparison between the two years.

In the year ended 31 July 2014, the trading operation generated revenues of £48,000 and sustained an overall loss for the year of £507,000 (2013: £825,000).

Loss per ordinary share

Basic and diluted loss per share arising from continuing operations has reduced from 0.10 pence for the year ended 31 July 2013, to 0.07 pence for the year ended 31 July 2014.

Basic and diluted loss per share arising from discontinued operations has also reduced from 0.47 pence for the year ended 31 July 2013 to 0.29 pence for the year ended 31 July 2014.

Outlook

The Board considers that the current Investing Policy is in the best interests of the Company and its Shareholders as a whole.

The Directors regularly assess investment opportunities for the Company in accordance with the investing policy which was adopted on 12 September 2014. Further capital has been raised by the Company which puts the Company in a good position to pursue new investment opportunities.

The Board acknowledges this exciting period for the Company as it continues to evaluate and seek additional investments as opportunities arise. The Board is confident that we will be able to proceed with suitable investments for the Company over the course of the next year.

The Board would like to take this opportunity to thank our shareholders for their continued support and I look forward to reporting further progress over the next period and beyond.

David Lenigas - Executive Chairman

20 January 2014

For further information, please contact:

Consolidated statement of profit or loss

for the year ended 31 July 2014

Consolidated statement of financial position 

as at 31 July 2014

The financial statements were approved and authorised for issue by the Board of Directors on 20 January 2014 and were signed on its behalf by:

David Lenigas Donald Strang

Chairman Director

Company number: 05656604

Consolidated statement of changes in equity 

for the year ended 31 July 2014

Details of the nature of each component of equity are set out in Notes 20 and 21.

Consolidated statement of cash flows 

for the year ended 31 July 2014

Company statement of financial position 

as at 31 July 2014

The financial statements were approved and authorised for issue by the Board of Directors on 20 January 2014 and were signed on its behalf by:

David Lenigas Donald Strang

Chairman Director

Company number: 05656604

Company statement of changes in equity 

for the year ended 31 July 2014

Details of the nature of each component of equity are set out in Notes 20 and 21.

Company statement of cash flows 

for the year ended 31 July 2014

Notes to the financial statements

1 Presentation of the financial statements

Description of business

Evocutis plc is public limited company domiciled in the United Kingdom. From 1 August 2013 until 18 March 2014, the group was a specialist research group focused on topical antimicrobial innovations for products in the medicinal and consumer healthcare markets. The group provided independent research and testing facilities specialising in skin microbiology, living skin tissue culture and clinical dermatology.

On 19 March 2014, following closure of the group's trading operations, the company became an investing company. The financial results from the previous trade are presented within discontinued operations. The comparative figures for the year ended 31 July 2013 have been restated to enable comparison between the two years.

The Group's registered office is Evocutis plc, Suite 3B, 38 Jermyn Street, London, SW1Y 6DN.

Compliance with applicable law and IFRS

The financial statements have been prepared in accordance with the Companies Act 2006 and International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) and related interpretations, as adopted by the European Union.

Composition of the financial statements

The consolidated and Parent Company financial statements are drawn up in Sterling, the functional currency of Evocutis plc and in accordance with IFRS accounting presentation. The level of rounding for financial information is the nearest thousand pounds.

Accounting convention

The financial statements have been prepared using the historical cost convention, as modified by the revaluation of certain items, as stated in the accounting policies.

Basis of preparation - Going concern

The financial statements have been prepared on a going concern basis, notwithstanding the loss for the year ended 31 July 2014. This basis assumes that the company will have sufficient funding to enable it to continue to operate for the foreseeable future and the Directors have taken steps to ensure that they believe that the going concern basis of preparation remains appropriate.

The Group made a loss for the year of £704,000 after taxation. The Group had net assets of £256,000 and cash balances of £124,000 at 31 July 2014. The Directors have prepared financial forecasts which cover a period of at least 12 months from date that these financial statements are approved. These forecasts show that the Company expects to have sufficient financial resources to continue to operate as a going concern.

Following the disposal of the Company's intellectual property assets, along with associated property, plant and equipment, in March 2014, the company is now classified as an investing company and holds cash balances and available-for-sale investments. As part of the disposal of assets agreement, the Company retains a right to receive contingent consideration in the form of royalties arising on any revenues generated by those assets during the 3 year period ending 18 March 2017 or from the sale or licence of the SYN1113 asset at any time.

Subsequent to the year end, the Company has raised further funding of £1,710,000 from the issue of new ordinary shares. The Directors anticipate that the Company will have a very low level of operating costs for the next 12 months, principally the costs of maintaining the cash shell and of pursuing investment opportunities for the Company. Therefore they are confident that existing cash balances, along with the new funding, are adequate to ensure that costs can be covered.

Consequently, the Directors have a reasonable expectation that the Group has adequate resources to continue to operate for the foreseeable future and that it remains appropriate for the financial statements to be prepared on a going concern basis.

Financial period

These financial statements cover the financial year from 1 August 2013 to 31 July 2014, with comparative figures for the financial years from 1 August 2012 to 31 July 2013 and, where appropriate, from 1 August 2011 to 31 July 2012.

Composition of the Group

A list of the subsidiary undertakings which, in the opinion of the Directors, principally affected the amount of profit or the net assets of the Group is given in Note 15.

Accounting principles and policies

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The financial statements have been prepared in accordance with the Group's accounting policies approved by the Board and described in Note 2, 'Accounting principles and policies'. Information on the application of these accounting policies, including areas of estimation and judgement is given in Note 3, 'Key accounting judgements and estimates'. Where appropriate, comparative figures are reclassified to ensure a consistent presentation with current year information.

2 Accounting principles and policies

Consolidation

The consolidated financial statements for the year ended 31 July 2014 comprise the Company and its subsidiaries (together referred to as the 'Group').

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date control ceases.

Transactions and balances between Group companies are eliminated and no profit before tax is taken on sales between Group companies until the products or services are sold to customers outside the Group. Goodwill is capitalised as a separate item for subsidiaries acquired. Where the cost of acquisition is below the fair value of the net assets acquired, the difference is recognised directly in the consolidated statement of profit or loss and other comprehensive income.

Discontinued operations

The results of the research services operation have been classified as a discontinued operation and the comparative consolidated statement of profit or loss and other comprehensive income has been re-presented in the current and prior year to show the discontinued operation separately from continuing operations. Further details are set out in note 9.

Revenue

Revenue is recognised when persuasive evidence of an arrangement exists, delivery of products has occurred or services have been rendered, prices are fixed or determinable and there is a probability that economic benefits will flow to the Group. Certain revenues are generated from licensing and exclusivity agreements under which the Group grants third parties rights to certain products or technologies.

Upfront payments and other similar non-refundable payments received under these agreements are recorded as deferred revenue and are recognised in the consolidated statement of profit or loss and other comprehensive income over the performance period stipulated in the agreement.

Non-refundable milestone payments which represent the achievement of a significant technical/regulatory hurdle in the research and development process, pursuant to collaborative agreements, are recognised as revenue upon the achievement of the specified milestone.

Royalty income is recognised on an accruals basis in accordance with the economic substance of the agreement and is reported as part of revenue. Other revenues are recorded as earned or as the services are performed. 

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors. Further details are set out in Note 5.

Research and development expenditure

Except as set out below, research and development expenditure is charged to the consolidated statement of profit or loss and other comprehensive income as incurred.

Development expenditure is capitalised if it can be demonstrated that:

· it is technically feasible to develop the product for it to be sold;

· adequate resources are available to complete the development;

· there is an intention to complete and sell the product;

· the group is able to sell the product;

· sale of the product will generate future economic benefits; and

· expenditure on the project can be measured reliably.

Capitalised development costs are amortised over the periods that the Group expects to benefit from selling the products developed. The amortisation expense is included within general and administration costs in the consolidated statement of profit or loss and other comprehensive income.

Property, plant and equipment

Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs. Items of property, plant and equipment are carried at depreciated cost.

Depreciation is provided on all items of property, plant and equipment so as to write off the carrying value of items over their expected useful economic lives. It is applied at the following rates:

Leasehold improvements - Lease term

Plant & machinery - 3 to 5 years

Fixtures & fittings - 5 years

On disposal of property, plant and equipment, the cost and related accumulated depreciation and impairments are removed from the financial statements and the net amount, less any proceeds, is accounted for in the consolidated statement of profit or loss and other comprehensive income.

Goodwill

Goodwill represents the excess of the cost of a business combination over the total acquisition date fair values of the identifiable assets, liabilities and contingent liabilities acquired. Goodwill is deemed to have an indefinite useful life and is tested for impairment annually. Where the fair value of the interest acquired in an entity's assets, liabilities and contingent liabilities exceeds the purchase consideration paid, this excess is recognised immediately as a gain in the consolidated statement of profit or loss and other comprehensive income.

Other intangible assets

Intangible assets are stated at cost or deemed cost less provisions for amortisation and impairments.

Customer-related intangibles separately acquired or acquired as part of a business combination are amortised over their estimated useful lives, generally not exceeding 20 years, using the straight line basis. The estimated useful lives for determining the amortisation charge take into account the nature of the relationships and are reviewed and, where appropriate, adjusted annually.

Technology-based intangibles comprise unpatented technology, in-process research and development, know-how and trade secrets. Where these are separately acquired or acquired as part of a business combination, they are amortised over their estimated useful lives, generally not exceeding 20 years, using the straight-line basis. The estimated useful lives for determining the amortisation charge take into account the nature of the relationships and are reviewed and, where appropriate, adjusted annually. Research costs which do not meet the criteria for recognition of an internally generated intangible asset are written off to the consolidated statement of profit or loss and other comprehensive income when incurred.

Leases

Lease agreements which transfer substantially all the benefits and risks of ownership of an asset to the Group are accounted for as finance leases, as if the asset had been purchased outright. The assets are included within property, plant and equipment. The capital element of the lease commitment is included within obligations under finance leases. Assets held under finance leases are depreciated on a basis consistent with similar owned assets. The interest element of the lease is included in the consolidated statement of profit or loss and other comprehensive income.

All other leases are operating leases and the rental costs are charged to the consolidated statement of profit or loss and other comprehensive income on a straight line basis over the term of the lease.

Share capital

Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group's ordinary shares are classified as equity instruments.

Retirement benefits: Defined Contribution Schemes

Contributions to defined contribution pension schemes are charged to the consolidated statement of profit or loss and other comprehensive income in the year to which they relate.

Share-based payments

Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the consolidated statement of profit or loss and other comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest.

Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Financial instruments

Available-for-sale investments

Non-derivative financial assets comprising the Company's strategic investments in entities not qualifying as subsidiaries, associates or jointly controlled entities. They are carried at fair value with changes in fair value recognised directly in a separate component of equity (available-for-sale reserve). Where there is a significant or prolonged decline in the fair value of an available-for-sale financial asset (which constitutes objective evidence of impairment), the full amount of the impairment, including any amount previously charged to equity, is recognised in the consolidated statement of comprehensive income. On sale, the amount held in the available-for-sale reserve associated with that asset is removed from equity and recognised in the consolidated statement of comprehensive income.

Trade and other receivables

Trade and other receivables are accounted for at original invoice amount less any provisions for doubtful debts. Provisions are made where there is evidence of a risk of non-payment, taking into account the age of the debt, historical experience and general economic conditions. If a trade debt is determined to be uncollectable, it is written off, firstly against any provisions already held and then to the consolidated statement of profit or loss and other comprehensive income. Subsequent recoveries of amounts previously provided for are credited to the consolidated statement of profit or loss and other comprehensive income.

Trade and other payables

Trade and other payables are held at amortised cost which equates to nominal value.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, current balances with banks and similar institutions and liquid investments generally with maturities of 3 months or less. They are readily convertible into known amounts of cash and have an insignificant risk of changes in values.

Financial investments

Listed investments are valued at closing bid price on 31 July. For measurement purposes, financial investments are designated at fair value through profit and loss. Gains and losses on the realisation of financial investments are recognised in the profit and loss for the period and taken to retained earnings. The difference between the market value of financial instruments and book value to the Group is shown as a gain or loss in the profit for the period and taken to the revenue reserve.

Investments in subsidiaries are reflected in the Company's accounts at cost less any provisions for diminution in value.

Taxation

Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet differs from its tax base, except for differences arising from:

· the initial recognition of goodwill;

· the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profits; and

· investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered).

Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:

· the same taxable group company; or

· different group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered.

Impairment of non-current assets

The carrying values of all non-currents assets are reviewed for impairment when there is an indication that the assets might be impaired. Additionally, goodwill, intangible assets with indefinite useful lives and intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the consolidated statement of profit or loss and other comprehensive income in the year concerned.

Impairments of goodwill are not reversed. Impairment losses on other non-current assets are only reversed if there has been a change in estimates used to determine recoverable amounts and only to the extent that the revised recoverable amounts do not exceed the carrying values that would have existed, net of depreciation or amortisation, had no impairments been recognised.

3 Key accounting judgements and estimates

The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Significant estimates and assumptions that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities at 31 July 2014 are set out below:

Fair value of contingent consideration

The consideration for the sale of intellectual property assets to Venn Life Science Holdings plc in March 2014 included an element of contingent consideration that is based on a future royalty stream from commercialisation of those assets by Venn. An estimate of the fair value of the contingent consideration has been made in these financial statements. However the actual amounts of royalties receivable in future years is dependent upon a number of factors, all of which are outside the Company's control. These include Venn's ability to be able to generate commercial revenues from the intellectual property assets, the demand for those products and other economic factors.

4 New accounting requirements

At the date of authorisation of these financial statements, the following IFRSs, IASs and Interpretations were in issue but not yet effective. Their adoption is not expected to have a material effect on the financial statements unless otherwise indicated:

· IFRS 9 Financial Instruments (effective date not yet confirmed and standard not yet endorsed by the EU);

· IFRS 15 Revenue from Contracts with Customers (effective date 1 January 2017, not yet endorsed by the EU);

· Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38) (effective date 1 January 2016);

· Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11) (effective date 1 January 2016); and

· IFRS 14 Regulatory Deferral Accounts (effective date 1 January 2016).

5 Segmental analysis

Segmental analysis is not applicable as there is only one operating segment of the continuing business - investment activities. The performance measure of investment activities is considered by the Board to be profitability and is disclosed on the face of the consolidated statement of profit or loss and other comprehensive Income. An analysis of the Group's previous trading activities, which were discontinued during the year, is set out in note 9.

6 Information regarding Directors and employees

During the year, the Group provided benefits to employees including healthcare insurance and personal life assurance.

The compensation of the Directors, in aggregate, was as follows:

Full details of the remuneration of individual directors, including the highest paid director, are set out in the Directors' Report. There were no directors (2013: 1 director) in the Group's stakeholder money purchase pension schemes in the year.

7 Loss for the year - continuing operations

The following items have been included in operating loss:

At 31 July 2014, the amount due to BDO LLP for fees yet to be invoiced was £15,000, comprising statutory audit of £15,000.

8 Taxation

Movement in deferred tax liabilities

As set out in Note 2, the Group has not recognised a deferred tax asset in the financial statements as there is no certainty that taxable profits will be available against which these assets could be utilised.

Factors affecting the tax charge in future years

Changes to tax legislation could impact on the Group's effective tax rate. The UK Government has proposed some significant changes to the UK taxation system. The UK Government announced a phased reduction in the main rate of corporation tax to 20% and the deferred tax balances reflect that reduction in the UK tax rate.

9 Discontinued operations

In December 2013, the Group ceased its research services operation and all intellectual property assets and residual property, plant and equipment were disposed to Venn Life Science Holding plc on 19 March 2014. The results of the research services operation have been classified as a discontinued operation and the comparative consolidated statement of profit or loss and other comprehensive income has been re-presented in the current and prior year to show the discontinued operation separately from continuing operations. The results of operations discontinued during the year ended 31 July 2014 is as follows:

The loss from discontinued operation of £507,000 (2013: loss of £825,000) is attributable entirely to the owners of the Company.

Cash flows used in discontinued operations

Effect of the disposal on the financial position of the Group

10 Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume the conversion of all potentially dilutive ordinary shares.

The Group has one class of potentially dilutive ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. However, due to losses incurred in the year there is no dilutive effect from the potential exercise of these share options.

Loss attributable to ordinary shareholders

Weighted average number of ordinary shares

11 Property, plant and equipment

Following cessation of the Group's research services operation during the year, all property, plant and equipment assets were disposed of during this period.

Following cessation of the Company's research services operation during the year, all property, plant and equipment were disposed of during this period.

12 Goodwill

The goodwill arose on the acquisition of Leeds Skin Centre for Applied Research Limited in May 2011. Following the sale of the Group's intellectual property assets in March 2014, the goodwill balances have been eliminated during the year ended 31 July 2014.

13 Other intangible assets

Following the cessation of the group's research services operation and the sale of its intellectual property assets in March 2014, all remaining balances on intangible assets have been eliminated in the year.

14 Available-for-sale investments

The investment in Venn Life Science Holdings plc has been valued at bid price, as quoted on the London Stock Exchange, at 31 July 2014.

15 Investments in subsidiary undertakings

Principal Group companies

The following are the subsidiary undertakings of Evocutis plc at 31 July 2014.

During the year, two dormant subsidiary companies, Syntopix Limited and Syntopix Research Services Limited were voluntarily struck off the Register of Companies. Consequently the investments in these companies, which were fully provided against, have been eliminated during the year ended 31 July 2014. Subsequent to the period end, the Directors have applied for Leeds Skin Centre for Applied Research Limited to also be voluntarily struck off.

16 Trade and other receivables

At 1 August 2013, the Company's financial statements contained inter-group receivables with a gross amount of £3,522,000 against which full provision of £3,522,000 had been made. These balances were due from the Company's dormant subsidiaries, Syntopix Limited and Syntopix Research Services Limited. As explained in note 15, these companies were struck off during the year ended 31 July 2014. Consequently, the Company no longer has outstanding balances due from these entities.

At 31 July 2014, the Company's financial statements contained an inter-group receivable with a gross amount of £1,167 against which full provision of £1,167 has been made. This balance is due from the Company's dormant subsidiary, Leeds Skin Centre for Applied Research Limited. The Directors are in the process of applying for this subsidiary to be struck off the Register of Companies; therefore this balance is considered irrecoverable.

17 Cash and cash equivalent

18 Trade and other payables