PPG.L Regulatory News (PPG)

10 Jan 2008 07:01

Ipso Ventures PLC10 January 2008 INTERIM RESULTS ISPO Ventures plc (AIM: IPS) ("IPSO" or the "Company"), the intellectualproperty commercialisation company, is pleased to announce its interim resultsfor the six months ended 31 October 2007. Highlights: * First spin-out from Loughborough University * Further investment in all existing spin-outs * Cash of £3.15 million at 31 October 2007 Chairman of IPSO, Simon Hunt, said: "We are pleased with our progress to datewhich is on track with respect to our objectives set out at IPO." Further information, please contact: IPSO Ventures plc Tel: 020 7812 6042Simon Hunt, Chairman simon@ipsoventures.comNick Rodgers, Chief Executive nick@ipsoventures.com www.ipsoventures.com Ambrian Partners Limited Tel: 020 7776 6400Tim Goodman Rawlings Financial PR Limited Tel: 01756 770376Catriona Valentine catriona@rawlingsfinancial.co.uk IPSO Ventures was established to create sustainable businesses from intellectualproperty generated by universities and other research institutions. Throughlong-term framework agreements with such organisations, IPSO Ventures providesfunding, team building, business development, corporate finance advice and exitsfor spin-out companies. CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT Highlights In the six months since we last reported to you, a major step forward was takenin our relationship with Loughborough University. Axilica Limited, asemiconductor software development business, was created as the first spin-outunder our framework agreement. Our other portfolio companies, Therakind Limited and Intelligent Wound CareLimited, made important progress and we made further planned investments in bothof them to support their development. Overall we are on track with respect to our objectives set out at IPO. Financial and operational review Overview Net loss for the six months was £493,939 after interest on bank deposits of£107,180. The net loss included £135,000 of costs relating to researchundertaken by our wholly-owned subsidiary, Intelligent Wound Care Limited. Investment activities During the period, the Group made investments of £756,809, comprisinginvestments in associates of £486,809 and £270,000 invested in the group'ssubsidiary company, Intelligent Wound Care Limited. Operating costs Operating costs increased on an annualised basis, following the budgetedrecruitment of a group financial controller and costs of being an AIM listedcompany. The Group continues to maintain close control of its costs. Cash At 31 October 2007, cash and short-term investments totalled £3.15 million. Loughborough University Since the framework agreement with Loughborough University became unconditional,we have worked closely and successfully with the University's technologytransfer team: * conducting a full review of all opportunities - this is an ongoing process as new opportunities are being brought forward all the time;* selecting those opportunities which are currently at a stage where a spin-out company can be considered;* meeting with a significant number of the key academics who produce valuable intellectual property for the University;* implementing a number of initiatives to raise IPSO's profile across the University and establish links with further academics and departments. Axilica Limited was a direct result of this activity. This business, which wasestablished in September 2007, is creating software to automate and speed up theprocess of semiconductor chip development. IPSO made an initial investment of£150,000 and expects to make a further investment of up to £250,000, followingsuccessful beta testing of the product. It was particularly pleasing for us thatLachesis, the University Challenge Fund associated with Loughborough, chose toco-invest with IPSO in this spin-out. A number of interesting and exciting spin-out opportunities are currently beingconsidered and may be established in the first half of 2008. Investments Intelligent Wound Care Limited, which is developing devices to monitor woundhealing, has developed its first prototypes and plans to test these in researchsettings shortly. During the period, we invested a further £270,000 in thiscompany. Therakind Limited, which is developing paediatric drugs, made its firstregulatory submission in July and intends to commence its first clinical trialsat the end of the first quarter of 2008. We invested a further £300,000 inTherakind. WildKey Limited, which has developed software tools for the educational andleisure markets, increased sales significantly and launched a number of newproducts. We invested an additional £15,787 in WildKey. Outlook The second half of the current financial year has started well. We aim to createfurther spin-outs from Loughborough University in the near future anddiscussions are progressing with other universities with a view to securingfurther framework agreements. We have looked at a number of opportunities which would enable the Group toexpand into Europe and the USA. Whilst most of these are too under developed tomerit detailed consideration at this stage, we are exploring one opportunityfurther. During any expansion of IPSO, whether in the UK or further afield, theBoard will ensure that the Group has the necessary resources to manage theopportunity and extract value for shareholders. Finally, we would like to thank all our colleagues at IPSO Ventures, in theportfolio companies and at Loughborough for their efforts during the period. Simon Hunt, Executive ChairmanNick Rodgers, Chief Executive Consolidated interim income statementFor the six months ended 31 October 2007 Unaudited Unaudited Audited Six months Six months Year ended ended ended 31 October 31 October 30 April 2007 2007 2007 Note £ £ £ -------- -------- --------Revenue - - -Cost of sales - - - -------- -------- --------Gross profit - - -Administrative expenses (466,350) (341,979) (647,242)Research and development expenses (135,000) (135,000) (270,000) -------- -------- --------Operating loss (601,350) (476,979) (917,242)Finance income - interest receivable 107,180 17,850 49,080 -------- -------- --------Loss before tax (494,170) (459,129) (868,162)Tax 231 - (490) -------- -------- --------Loss for the period attributable toequity holders of the parent (493,939) (459,129) (868,652) -------- -------- --------Loss per shareBasic and diluted 2 (4)p (39)p (18)p -------- -------- --------All results derive from continuing operations. Consolidated interim statement of changes in equityFor the six months ended 31 October 2007 Attributable to equity holders of the Group Share Share Share option Other Retained capital premium reserve reserve earnings Total £ £ £ £ £ £ -------- -------- -------- -------- -------- --------At 1 May 2006 1,177 - - - (62,283) (61,106)Consolidated loss for the period - - - - (459,129) (459,129) -------- -------- -------- -------- -------- --------At 31 October 2006 1,177 - - - (521,412) (520,235)Issue of share capital 625,647 4,941,281 - (176,469) - 5,390,459Transfer of shares on reverseacquisition (1,177) - - 1,177 - -Consolidated loss for the period - - - - (409,523) (409,523)Employee share option charge - - 13,676 - - 13,676 -------- -------- -------- -------- -------- --------At 30 April 2007 (audited) 625,647 4,941,281 13,676 (175,292) (930,935) 4,474,377Consolidated loss for the period - - - - (493,939) (493,939)Employee share option charge - - 6,128 - - 6,128 -------- -------- -------- -------- -------- --------At 31 October 2007 (unaudited) 625,647 4,941,281 19,804 (175,292) (1,424,874) 3,986,566 -------- -------- -------- -------- -------- -------- Consolidated interim balance sheet31 October 2007 Unaudited Unaudited Audited 31 October 31 October 30 April 2007 2006 2007 Note £ £ £ --------- --------- ---------Non-current assetsProperty, plant and equipment 3 11,159 12,897 12,146Investments 4 662,391 164,982 175,582 --------- --------- --------- 673,550 177,879 187,728 --------- --------- ---------Current assetsTrade and other receivables 5 249,545 225,326 158,256Cash and cash equivalents 6 3,145,121 624,720 4,247,641 --------- --------- --------- 3,394,666 850,046 4,405,897 --------- --------- ---------Total assets 4,068,216 1,027,925 4,593,625 --------- --------- ---------Current liabilitiesTrade and other payables 7 (81,391) (48,160) (118,758)Convertible loans - (1,500,000) - --------- --------- ---------Net current assets/(liabilities) 3,313,275 (698,114) 4,287,139 --------- --------- ---------Non-current liabilitiesDeferred tax liabilities (259) - (490) --------- --------- ---------Total liabilities (81,650) (1,548,160) (119,248) --------- --------- ---------Net assets/(liabilities) 3,986,566 (520,235) 4,474,377 --------- --------- ---------EquityShare capital 625,647 1,177 625,647Share premium 4,941,281 - 4,941,281Share option reserves 19,804 - 13,676Other reserve (175,292) - (175,292)Retained earnings (1,424,874) (521,412) (930,935) --------- --------- ---------Equity attributable to equityholdersof the parent 3,986,566 (520,235) 4,474,377 --------- --------- ---------The financial statements were approved by the Board of Directors and authorisedfor issue on 10 January 2008. They were signed on its behalf by: Simon HuntDirector10 January 2008 Consolidated interim cash flow statementFor the six months ended 31 October 2007 Unaudited Unaudited Audited Six months Six months Year ended ended ended 31 October 31 October 30 April 2007 2006 2007 Note £ £ £ --------- --------- ---------Net cash from operating activities 8 (721,113) (697,768) (1,001,446) --------- --------- ---------Investing activitiesInterest received 107,180 17,850 49,080Purchases of property, plant andequipment (1,778) (14,300) (15,942)Payments to acquire investments (486,809) (181,062) (175,582) --------- --------- ---------Net cash used in investing activites (381,407) (177,512) (142,444) --------- --------- ---------Financing activitiesProceeds on issue of shares - - 6,135,995Cost of share issue - - (745,538)Proceeds on issue of convertibleloan notes - 1,500,000 - --------- --------- ---------Net cash from financing activities - 1,500,000 5,390,457 --------- --------- ---------Net increase in cash and cashequivalents (1,102,520) 624,720 4,246,567Cash and cash equivalents atbeginning of period 4,247,641 - 1,074 --------- --------- ---------Cash and cash equivalents at endof period 3,145,121 624,720 4,247,641 --------- --------- --------- Notes to the interim results 1. Accounting policies Basis of preparationThe financial information for the six months ended 31 October 2007 is unauditedand has been prepared in accordance with the accounting policies set out in theGroup's Annual Report for the year ended 30 April 2007. The financialinformation for the six months ended 31 October 2006 is also unaudited and theresults have not been reviewed by the Group's auditors. The financialinformation relating to the year ended 30 April 2007 has been extracted from thefull report for that year. The report of the Auditors on the 2007 accounts wasunqualified. The statutory accounts for the year ended 30 April 2007 wereapproved at the Group's Annual General Meeting on 10 September 2007 and havebeen delivered to the Registrar of Companies. Basis of consolidationThe Group's consolidated interim financial statements consist of IPSO Venturesplc and all of its subsidiaries, excluding intra-group transactions. AssociatesAn associate is an entity over which the Group has significant influence, butnot control or joint control, through participation in the financial andoperating decisions of the investee.The Group's equity investments are held with a view to realisation of capitalgains and for this reason the Directors have designated such investments inassociates to be measured at fair value through profit or loss in accordancewith IAS 39 'Financial Investments: Recognition and Measurement'. Deferred taxDeferred tax arises from temporary timing differences as a result of differenttreatment for accounts and taxation purposes of transactions and eventsrecognised in the financial statements of the current and previous periods.Deferred tax is not currently recognized because of the uncertainty of futuretaxable profits against which they may be recovered. Share-based paymentsThe Group has applied the requirements of IFRS 2 'Share-based Payments'.The Group issues equity-settled share-based payments to certain employees.Equity-settled share-based payments are measured at fair value at the date ofgrant. The fair value determined at the grant date of the equity-settledshare-based payments is expensed on a straight-line basis over the vestingperiod, based on the Group's estimate of shares that will eventually vest andadjusted for the effect of non market-based vesting conditions.Fair value is measured by use of the Black Scholes model. 2. Loss per share The basic loss per share is calculated by dividing the loss attributable toordinary shareholders by the weighted average number of ordinary shares of12,538,819 outstanding during the period ended 31 October 2007 (4,906,679 for 30April 2007 and 1,176,470 for 31 October 2006).There were no dividends for the period ended 31 October 2007.There were no potentially dilutive share options over ordinary shares in theGroup outstanding at the period end and therefore the dilutive earnings pershare are equal to the basic earnings per share. 3. Property, plant and equipment Fixtures Computer And fittings equipment Total £ £ £ --------- --------- ---------CostAt 1 May 2007 652 15,290 15,942Additions - 1,778 1,778 --------- --------- ---------At 31 October 2007 652 17,068 17,720 --------- --------- ---------Accumulated depreciation and impairmentAt 1 May 2007 (98) (3,698) (3,796)Charge for the period (65) (2,700) (2,765) --------- --------- ---------At 31 October 2007 (163) (6,398) (6,561) --------- --------- ---------Net book valueAt 31 October 2007 489 10,670 11,159 --------- --------- ---------At 31 October 2006 - 12,897 12,897 --------- --------- ---------At 30 April 2007 554 11,592 12,146 --------- --------- --------- 4. Investments The Group held the following investments: Unaudited Unaudited Audited 31 October 31 October 30 April 2007 2006 2007 £ £ £ --------- --------- ---------Available-for-sale investments (fair value)Axilica Limited 154,090 - -Therakind Limited 429,962 120,000 129,962WildKey Limited 61,407 44,982 45,620 --------- --------- --------- 645,459 164,982 175,582Other investments 16,932 - - --------- --------- --------- 662,391 164,982 175,582 --------- --------- --------- 5. Trade and other receivables Unaudited Unaudited Audited 31 October 31 October 30 April 2007 2006 2007 £ £ £ --------- --------- ---------VAT recoverable 11,756 48,431 -Prepayments and deposits 237,789 143,630 -Other debtors - 33,265 158,256 --------- --------- --------- 249,545 225,326 158,256 --------- --------- ---------The Directors consider that the carrying amount of trade and other receivablesapproximates their fair value. 6. Cash and cash equivalents Unaudited Unaudited Audited 31 October 31 October 30 April 2007 2006 2007 £ £ £ --------- --------- --------Cash and cash equivalents 67,121 24,720 1,247,641Short-term deposits 3,078,000 600,000 3,000,000 --------- --------- --------- 3,145,121 624,720 4,247,641 --------- --------- --------- 7. Trade and other payables Unaudited Unaudited Audited 31 October 31 October 30 April 2007 2006 2007 £ £ £ --------- --------- ---------Trade creditors 21,653 1,846 15,285Other creditors - - 14,460Accruals 59,738 46,314 89,013 --------- --------- --------- 81,391 48,160 118,758 --------- --------- ---------Trade creditors and accruals principally comprise amounts outstanding for tradepurchases and ongoing costs. The Directors consider that the carrying amount oftrade payables approximates to their fair value. 8. Notes to the cash flow statement Unaudited Unaudited Audited 31 October 31 October 30 April 2007 2006 2007 £ £ £ --------- --------- ---------Operating loss (601,350) (476,979) (917,242)Adjustments for:Depreciation of property, plant andequipment 2,765 1,403 3,796Share-based payment expense 6,128 - 13,676 --------- --------- ---------Operating cash flows before movementsin working capital (592,457) (475,576) (899,770)Increase in receivables (91,289) (211,633) (149,167)(Decrease)/increase in payables (37,367) (10,559) 47,491 --------- --------- ---------Net cash from operating activities (721,113) (697,768)(1,001,446) --------- --------- ---------Cash and cash equivalents (which are presented as a single class of assets onthe face of the balance sheet) comprise cash at bank and other short-term highlyliquid investments with a maturity of three months. Directors, secretary and advisers Company registration number: 5859612 Registered office: 62-65 Chandos PlaceCovent GardenLondon WC2N 4LP Directors:Simon Hunt (Chairman)Nick Rodgers (Chief Executive)Dr Simon Haworth (Director)Michael Baines (Non-executive Director)Dr Peter Knox (Non-executive Director) Company secretary:Cargil Management Services Limited22 Melton StreetLondon NW1 2BW Nominated adviser and broker:Ambrian Partners Limited8 Angel CourtLondon EC2R 7HP Registrars: Share Registrars LimitedCraven HouseWest StreetFarnham GU9 7EN Bankers:HSBC Bank plc16 King StreetLondon WC2E 8JF Solicitors: Memery Crystal44 Southampton BuildingsLondon WC2A 1AP Public relations:Rawlings Financial PR LimitedCroft HouseLittonSkipton BD23 5QJ Independent auditors:Deloitte & Touche LLPStation RoadCambridgeCB2 1RN This information is provided by RNS The company news service from the London Stock Exchange