Provexis Regulatory News (PXS)

19 Dec 2006 09:54

Provexis PLC19 December 2006 PROVEXIS plc ("Provexis" or the "Company") UNAUDITED INTERIM RESULTS for the SIX MONTHS ended 30 SEPTEMBER 2006 Provexis plc, the nutraceutical company that develops scientifically-provenfunctional and medical foods, announces its unaudited interim results for thesix months ended 30 September 2006. Key Financial Results •Revenues of £428,000, in-line with expectations (2005: £128,000) •Adjusted loss before interest, goodwill amortisation, share compensation expense and tax of £1,374,000 (2005: loss of £959,000) •Cash balance £1,007,000 (2005: £3,798,000) Key Highlights •Sirco(R) heart-health juice brand now distributed in four major UK supermarket chains, 1,100 outlets in total •Single-serve 250ml Sirco(R) pack launched on schedule, now in 150 Holland & Barrett and 250 Julian Graves stores, plus a further 300 independent health food stores •Exclusivity Agreement signed with major global branded food business for joint development of an advanced format of the Fruitflow(R) heart-health technology •Fruitflow(R) projects underway with two major international brand owners, for juice drinks and Deep Vein Thrombosis applications •Global scientific endorsement for clinical efficacy of Fruitflow(R) from the highest-ranked peer-review journal in the nutrition field, The American Journal of Clinical Nutrition •Management restructuring - Stephen Moon, formerly Commercial Director of Provexis, appointed Chief Executive •Working capital - the Company has the support of key existing investors and is working with these parties and potential new investors to raise further working capital Stephen Moon, Chief Executive Officer of Provexis plc, commented: "We are pleased with the progress of the Sirco(R) brand in all channels with1,800 total outlets, including four leading multiple grocers, exceeding ourexpectations. Sales were in-line with expectations for the first half of theyear, and during the second half of the year we will continue to seek furtherlistings while moving the brand towards a contribution positive state during2007. This will provide us with strategic flexibility in our future options. The science underpinning the Fruitflow(R) technology was further endorsed bypublication of two peer-review papers in The American Journal of ClinicalNutrition, the leading scientific journal in the nutrition field. We arecontinuing to extend the scope of the technology, having filed patents for thetechnology to be extended into products for the reduction of risk of Deep VeinThrombosis ("DVT" also known as "economy-class syndrome") and have commenced thedevelopment of clinical support in this claim area. We continue to co-develop an advanced format of our patented,scientifically-proven Fruitflow(R) heart-health technology for our global foodpartner and during 2007 we will collaborate on efficacy trials specific to thebrand owner's product formats. We expect to enter into a full Licence Agreementonce we have achieved mutually-agreed project objectives. This advanced formatwill provide a platform for our longer-term strategy of entering broaderhealthcare sectors including dietary supplements, over-the-counter medicines("OTC") and medical products. We are jointly assessing the potential for a product launch with a majorinternational brand owner, where Fruitflow(R) will be incorporated into theirestablished juice brand. We are working with a global food brand owner to assess the feasibility of theco-development and launch of a product for DVT. It is planned that the productwould be distributed through airline catering channels. However, the planned investment in our brand and technologies in addition to theextended timeline for the development of the advanced format of Fruitflow(R), asannounced on 1 November 2006, has depleted the Company's working capital. Whilstthe Directors believe it is realistic to expect significant licensing revenuesby the end of the summer of 2007, the Company requires further funds to bridgethe intervening period. The Company has the support of key existing investorsand is working with these parties and potential new investors to raise furtherworking capital." For further information please contact: Stephen Moon, Chief ExecutiveProvexis plc Tel: 020 8392 6631 Emma Kent/Victoria GeogheganBell Pottinger Corporate & Financial Tel: 020 7861 3232 Chairman's statement I am pleased that the Company continues to make strong progress in itsdevelopment, achieving milestones which we anticipate will unlock major globalcommercial opportunities. We expect both significant Fruitflow(R) licencerevenues and Sirco(R) moving into profitability during 2007 and we are currentlyin discussions to secure the working capital required to bridge the interveningperiod. The distribution of our Sirco(R) heart-health brand has steadily increased sinceits launch in January 2006 and is now on sale in 1,800 retail outlets in the UK.I am pleased with the continued progress that we are making in thestrongly-growing chilled juice category, and am delighted that our rate of saleis competitive with several established brands owned by major juice companies. Sirco(R) is strategically important to Provexis as a demonstrable example of theFruitflow(R) technology in action and has enabled us to enter into licensingprojects with major international brand owners. The progress we are makingtowards moving the brand into a contribution-positive position will allowmanagement to assess longer-term options for this asset. We received a major endorsement of the clinical efficacy of Fruitflow(R) fromthe highest ranked peer-reviewed journal in the nutrition field, the AmericanJournal of Clinical Nutrition. This is another important milestone and has had apositive impact on our marketing campaign for Sirco(R) by establishing strongcredibility in the medical and scientific communities, with resultant nationaland specialist press coverage. The Company's key business driver is the development of the Fruitflow(R)technology and in addition to underpinning the Sirco(R) brand, the managementteam believes that this patented and scientifically proven technology can beapplied over a broad range of functional food formats, and in the longer-termcan facilitate entry into the dietary supplement and medical sectors. We havetherefore been concentrating our efforts and investment in this area. I ampleased that we have signed an Exclusivity Agreement with a major internationalbrand owner and expect to move to a full Licence Agreement as we deliver keymilestones in the project. We are also in dialogue with other majorinternational brand owners regarding products in the areas of juice drinks andDVT. During the period we undertook a management restructure. I was delighted toappoint Stephen Moon, formerly our Commercial Director, to the role of ChiefExecutive. Stephen Moon has been central to the strategic development of theCompany, identifying and implementing revenue generating opportunities and Ibelieve his skills are ideally suited to this phase of the Company'sdevelopment. Stephen Franklin stepped down as CEO and he continues to supportthe development of the Company as Head of Research & Development. The functional food sector continues to grow strongly in all major marketsworldwide and I believe that Provexis is well-positioned to capitalise on theseglobal opportunities. Subject to securing the necessary funding, we look forwardto making yet further progress during the next year. Dawson BuckChairman Management review The Provexis business model is to develop functional and medical food productsfrom natural extracts and compounds, to develop health claims for the productswith clinical support, and to secure the Intellectual Property ("IP") rights forthose technologies. The products are commercialised via a combination of newbrand development and licensing to major food brand owners and healthcarecompanies. During the six months to 30 September 2006 we have continued to make progresswith our commercial strategy. We have extended distribution of our Sirco(R)heart-health juice into four of the five largest multiple grocers, with 1,100outlets in total. We have also launched a single-serve pack in 700 high streetand independent health outlets. Management is on track to move the brand into acontribution-positive state during 2007, and this will provide the maximumstrategic flexibility for the future including the options of further,profitable growth or the potential divestment of this asset. Significant progress has been made in partnering with global brand owners withour Fruitflow(R) technology, and we are engaged with a significant internationalbrand owner in a major co-development project, as well as being in discussionwith two major global brand owners regarding potential international launches inthe juice and DVT categories. In addition to this core activity we havecontinued to extend Fruitflow(R) claim areas and have made progress in thedevelopment of our patented technology for the treatment of Crohn's Disease. As a result of the planned investment in our brand and technologies, togetherwith the extended timelines for the co-development of the new Fruitflow(R)format, we have depleted our working capital reserves. The Company believes itis reasonable to expect significant licence-related revenues in the late summerof 2007, however further working capital is required to bridge the interveningperiod. The Company has the support of key existing shareholders and at presentthe Directors are in discussion with these parties and potential new investorsto secure funds to meet this requirement. Financial Review Total turnover for the period ended 30 September 2006 was £428,000 (2005:£128,000). Administration expenses for the period ended 30 September 2006 were £1,879,000. This comprised of £754,000 of marketing and selling expenses in connection with the Sirco brand, £206,000 of research and development costs in relation to Fruitflow(R) development, £615,000 of central overheads and £304,000 of non cash expense comprising goodwill amortisation of £242,000 and share option compensation expense of £62,000. (2005: £1,567,000 comprising sales and marketing £251,000, research and development £147,000, central overheads, £576,000 and non cash expense of £593,000 comprising goodwill amortisation £120,000 and share compensation expense of £473,000). Operating loss before interest, taxation, share option expense and amortisationof goodwill for the period ended 30 September 2006 totalled £1,374,000 (2005:£959,000). Cash at bank as at 30 September 2006 was £1,007,000 (2005: £3,798,000 as at 30September 2005). While the Company secured a £3 million Standby Equity Distribution Agreementwith a capital provider during the period, this facility has not been utiliseddue to low trading volumes, and management will review the ongoing need for thisfacility after new working capital facilities have been secured. Sirco(R) heart health juice The Company's Sirco(R) heart-health juice brand, the first to address plateletaggregation (the cause of blood clots which can cause heart attack, stroke andDVT) was launched in January 2006. During the six months ended 30 September 2006 we extended major multiple grocerdistribution of Sirco(R), securing a listing in 235 Morrisons outlets, inaddition to the existing 600 Tesco and Waitrose supermarkets. We also launchedthe 250 ml single-serve pack during the summer with distribution secured in 150Holland & Barrett high street outlets, together with 300 independent health-foodstores. Following the period end we secured a distribution agreement with Asda,bringing the total major multiple distribution base to 1,100 outlets. InNovember 2006 we also secured 250 Julian Graves high street stores, bringingtotal distribution to 1,800 outlets. We have made substantial investment in advertising and marketing throughout theperiod, with our press advertising having been seen at least 8 times by anestimated 10 million target consumers. In addition, we have continued to marketto medical professionals both directly and through medical conferences. We havealso invested substantially at store-level, with price promotions taking placein all major retailers, together with sampling and other educational campaigns.Sirco(R) has performed well in rate of sale terms against other heart-healthjuice and dairy products, as well as broader health-focused juice brands. Sales were in line with expectations in the period. During 2007 we intend tomove the brand into a contribution-positive state and are making good progresstowards this. This will provide the Company with the broadest range of strategicoptions for the future, including profitable growth of the brand, or adivestment. Fruitflow(R) - licensing and development of the technology The Company is implementing a global licensing strategy for the Fruitflow(R)technology, initially targeting food and beverage and DVT sectors, with alonger-term strategy of targeting broader market opportunities including thedietary supplement, OTC and medical sectors. A significant milestone during the period was securing a major internationalscientific endorsement of Fruitflow(R) and the supporting science, via thepublication of two peer-review publications in the world's highest rankedjournal in the field of nutrition, the American Journal of Clinical Nutrition. During the period, the European Union introduced new legislation to governhealth claims. We have made significant progress in meeting this newlegislation, and furnishing the supporting data and as such believe thatFruitflow(R) is in a strong position. Equally, our Generally Regarded As Safesubmission to the Federal Drug Authority for the US market is now well into theapproval process and we hope to have clearance early in 2007. During the six month period to 30 September 2006 we signed a twelve monthExclusivity Agreement with a major global branded food business for the jointdevelopment of a new concentrated format of Fruitflow(R) for use in a broaderrange of food and beverage applications, in addition to exclusive rights to ourpatented Fruitflow(R) technology world-wide in a range of food and beverageformats. In 2007 we will collaborate on efficacy trials specific to ourpartner's product formats and when we have achieved these important milestones,we expect to move to a full Licence Agreement. Success in this project, inaddition to leading to significant licence revenues in its own right, willprovide the platform for Fruitflow(R) to enter into broader healthcare sectorsincluding dietary supplements, OTC and medical products. We are working with a major international beverage brand owner to assess thefeasibility of the launch of a Fruitflow(R)-containing juice product, and workis accelerating on this project. We have identified a Fruitflow(R) mode of action for the reduction of risk ofDVT and have subsequently filed international patents in this application area.Our scientists are developing the scientific substantiation for this applicationand this programme will accelerate in 2007. We have commenced a co-developmentproject with a major global food brand owner for a product to be distributed viaairline catering channels and during 2007 we will focus on developing theproduct, in addition to commencing a substantial clinical trial programme. New product development While the emphasis is firmly on the development of Fruitflow(R), given theadvanced nature of the technology and its potential for revenue generation, wehave continued to progress the development of the patented plantain extract forthe treatment of Crohn's Disease and potential broader application in thetreatment of Inflammatory Bowel Disease. We have developed in conjunction withour partner (a leading medical food company) a product format for use inforthcoming clinical trials. It is expected that these trials will commence inJanuary 2007 in two medical centres in the North West of England. This patentedtechnology is an important element in underpinning our pipeline. Our relationship with a leading UK technology transfer company, Plant BioscienceLimited, continues and we are exploring routes to more fully realise the valuein their relationship with the Institute of Food Research, the developers of ahigh-glucosinolate broccoli strain with scientifically-proven cancer riskreduction properties. Outlook In summary, the Company continues to make good progress. Sales and distributionof Sirco(R) are on track and we hope to further extend distribution early in2007. We have a number of licensing and co-development activities in place withmajor international corporations, and we expect to begin to generate revenuesfrom this area in 2007. The functional food market is worth $73bn globally andis growing at twice the rate of the conventional food and beverage market, andwe believe that technologies with strong claims and in-depth scientific proof,such as our Fruitflow(R) brand, will be successful in the sector. Stephen MoonChief Executive Officer Consolidated profit and loss accountfor the six months ended 30 September 2006 Note Six months ended 30-Sep-06 (unaudited) Continuing Discontinued Total £ £ £ Turnover 428,277 0 428,277 Cost of Sales (194,746) 0 (194,746) -------------------------------------Gross Profit 233,531 0 233,531 Distribution Costs (33,513) 0 (33,513) Administrative Expenses Share option costs (62,099) 0 (62,099) Re-organisation costs 0 0 0 Other administrative expenses (1,816,450) 0 (1,816,450) -------------------------------------- (1,878,549) 0 (1,878,549) --------------------------------------Operating Loss (1,678,531) 0 (1,678,531) Provision for loss on disposalof discontinued operations --------------------------------------Loss on ordinary activities before interest (1,678,531) 0 (1,678,531) Interest receivable 23,223Interest payable and similar charges (90,000) -------------- Loss on ordinary activities beforeand after taxation 4 (1,745,308) Loss for the period (1,745,308) ============== Loss per ordinary shareBasic and diluted, p 5 (1.0) Discontinued activities relate to the Altu food-bar businessAll recognised gains and losses in the current and prior periods are included inthe profit and loss account. Consolidated profit and loss accountfor the six months ended 30 September 2006 Note Six months ended 30-Sep-05 (unaudited) Continuing Discontinued Total £ £ £ Turnover 0 127,688 127,688 Cost of Sales 0 (100,091) (100,091) ------------------------------------ Gross Profit 0 27,956 27,956 Distribution Costs 0 (14,299) (14,299) ------------------------------------Administrative Expenses Share option costs (473,311) 0 (473,311) Re-organisation costs (119,850) 0 (119,850) Other administrative expenses (821,085) (152,545) (973,630) ------------------------------------ (1,414,246) (152,545) (1,566,791) ------------------------------------ Operating Loss (1,414,246) (139,248) (1,553,494) Provision for loss on disposalof discontinued operations (33,676) (33,676) ------------------------------------ Loss on ordinary activities before interest (1,414,246) (172,924) (1,587,170) Interest receivable 52,020Interest payable and similar charges (6,500) ----------- Loss on ordinary activities before andafter taxation 4 (1,541,650) Loss for the period (1,541,650) =========== Loss per ordinary shareBasic and diluted, p 5 (1.0) Discontinued activities relate to the Altu food-bar businessAll recognised gains and losses in the current and prior periods are included in the profit and loss account. Consolidated profit and loss accountfor the six months ended 30 September 2006 Note Year ended 31-Mar-06 (unaudited) Continuing Discontinued Total £ £ £ Turnover 139,972 127,688 267,660 Cost of Sales (75,707) (100,091) (175,798) --------------------------------------- Gross Profit 64,265 27,597 91,862 Distribution Costs (10,968) (14,299) (25,267) Administrative ExpensesShare option costs (522,593) 0 (522,593)Re-organisation costs (119,850) 0 (119,850)Other administrative expenses (2,824,386) (152,545) (2,976,931) --------------------------------------- (3,466,829) (152,545) (3,619,374) Operating Loss (3,413,532) (139,247) (3,552,779) --------------------------------------- Provision for loss on disposalof discontinued operations (32,756) (32,756) --------------------------------------- Loss on ordinary activities before interest (3,413,532) (172,003) (3,585,535) Interest receivable 113,918Interest payable and similar charges (6,500) ---------- Loss on ordinary activities beforeand after taxation 4 (3,478,117) Loss for the period (3,478,117) =========== Loss per ordinary shareBasic and diluted, p 5 (2.0) Discontinued activities relate to the Altu food-bar businessAll recognised gains and losses in the current and prior periods are included in the profit and loss account. Consolidated balance sheetas at 30 September 2005 Note As at As at As at 30-Sep-06 30-Sep-05 31-Mar-06 (unaudited) (unaudited)(unaudited) £ £ £ Fixed Assets Intangible assets 6,659,837 7,144,189 6,902,013 Tangible assets 15,846 9,399 16,517 ---------------------------------- 6,675,683 7,153,588 6,918,530 Current Assets Stocks 50,870 55,634 17,963 Debtors 347,758 300,958 554,102 Cash at bank and in hand 10 1,007,483 3,797,636 2,166,243 ---------------------------------- 1,406,111 4,154,228 2,738,308 Creditors: amounts falling due within one year Other (825,405) (578,939) (807,240) ----------------------------------- (825,405) (578,939) (807,240) Net current assets 580,706 3,575,289 1,931,068 ----------------------------------- -----------------------------------Total assets less current liabilities 7,256,389 10,728,877 8,849,598 ----------------------------------- Capital and reserves Called up share capital 2,510,386 2,496,284 2,500,010 Share premium account 5,391,867 5,308,062 5,312,243 Merger reserve 6,273,909 6,273,909 6,273,909 Share option reserve 934,043 908,345 871,944 Profit and loss account (7,853,816) (4,257,723) (6,108,508) ------------------------------------Shareholders' funds 7,256,389 10,728,877 8,849,598 ------------------------------------ Consolidated cash flow statementfor the six months ended 30 September 2005 Note Six months Six months Year ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 (unaudited) (unaudited) (unaudited) £ £ £ Net cash outflow from operating 8 (1,182,092) (1,010,298) (2,741,662)activities Returns on investments and servicing offinance Interest received 23,332 58,083 119,981 Interest paid on convertible loan notes 0 (6,500) (6,500) -------------------------------------Net cash inflow from returns on investmentand servicing of finance 23,332 51,583 113,481 Capital expenditure Purchase of tangible fixed assets 0 (2,977) (16,264) Acquisitions and disposals Purchase of subsidiary undertakings 0 (39,745) (39,745) Cash acquired with subsidiary undertakings 0 763,956 763,956 Cash received on disposal of business 0 0 43,455 ------------------------------------Cash outflow before financing (1,158,760) (724,211) (1,876,779) Financing Issue of ordinary share capital 0 3,775,744 3,775,744 Exercise of share options 0 0 3,725 Costs of share issues 0 (845,694) (841,514) Capital element of finance lease rental payments 0 (622) (622) ------------------------------------ 0 2,929,428 2,937,333 ------------------------------------Decrease increase in cash in the period 9 (1,158,760) 2,691,947 1,060,554 ------------------------------------ Notes to the consolidated accountsFor the six months ended 30 September 2006 1. Financial information The interim financial information for the six months ended 30 September 2006and the six months ended 30 September 2005 are unaudited and do notconstitute statutory accounts within the meaning of section 240 of theCompanies Act 1985. All of the accounting policies applied for this interim information are asfor the prior year with the exception of FRS 20 'Share based payment'. Inpreparing these financial statements the group has adopted for the firsttime FRS 20. FRS 20 requires the recognition of share based payments at fairvalue at the time of grant. Prior to the adoption of FRS 20, the grouprecognised the financial effect of the share based payment in the followingway: when shares and share options were awarded to employees a charge wasmade to the profit and loss account based on the difference between themarket value of the Company's shares at the date of grant and the optionexercise price in accordance with UITF Absract 17 (revised 2003) 'EmployeeShare Schemes'. The credit entry for this charge was taken to the share option reserve andreprted in the reconciliation of movements of shareholders' funds. Inaccordance with transitional provisions of FRS 20, the standard was appliedretrospectively to all grants of equity instruments after 7 November 2002that were unvested at 1 April 2006 and to liabilities for share basedtransactions at 1 April 2006. The adoption of FRS 20 has resulted in theretained profit reserve carried forward for the year ended 31 March 2006 andthe six months ended September 30 2006 being decreased by £67,147 and£129,246 respectively. The figures for the year ended 30 September 2005 have been extracted fromthe statutory accounts which have been reported on the company's auditorsand were delivered to the Registrar of Companies. The auditors' report didnot contain any statements under Section 237(2), (3) or (4) of the CompaniesAct 1985. The directors approved the financial information on 18 December 2006. A copyof this report will be sent to shareholders and copies of this statement areavailable on the company's website and from the Company at 20 Mortlake HighStreet, London SW14 8JN. 2. Accounting Policies The interim accounts have been prepared using the accounting policies setout in the 2006 published statutory accounts. The results of the Company andits subsidiaries have been consolidated using the acquisition method. Whereshare options are awarded to employees, the fair value of the options at thedate of grant is charged to the income statement over the vesting period.Non -market vesting conditions are taken into account by adjusting thenumber of equity instruments expected to vest at each balance sheet date sothat, ultimately, the cumulative amount over the vesting period is based onthe number of options that eventually vest. Market vesting conditions arefactored into the fair value of the options granted. As long as all othervesting conditions are satisfied , a charge is made irrespective of whetherthe market conditions are satisfied. The cumilative expense is not adjustedfor the failure to achieve a market vesting condition. Where the terms andconditions of options are modified before they vest, the increase in thefair value of the options, measured immediately before and after themodification, is also charged to the income statement over the remainingvesting period. 3. Dividend The directors do not recommend the payment of a dividend 4. TaxationBased on the results of the group, there is no tax charge/(credit) for theperiod 5. Loss per ordinary share The calculation of basic loss per ordinary share is based upon the lossafter taxation for the period of £1,745,308 (2005 : loss £1,541,650 ; yearended 31 March 2006 : loss £3,478,117) and the weighted average number ofordinary shares, as adjusted for the 2 for 1 share split effected 23 June2005, in issue during the period of 250,561,393 (2005 : 151,475,184 ; yearended 31 March 2006 : 200,292,337). As at As at As at 6. Share Capital 30 30 31 September September March 2006 2005 2006 Unaudited Unaudited Unaudited Number £ Number £ Number £ In issue at the start of the period 250,000,864 2,500,010 16,609,194 332,184 16,609,194 332,184Share split 2 for 1 to adjust nominalvalue to 1p - - 16,609,194 - 16,609,194 -Issue of shares for loan conversions - - 37,327,381 373,274 37,327,381 373,274Issue of shares for acquisition ofProvexis Limited - - 111,658,555 1,116,586 111,658,555 1,116,587Issue of shares via placing - - 67,424,000 674,240 67,424,000 674,240Exercise of share options - - - - 372,540 3,725Issue of shares for SEDA implementationfee 1,037,608 10,376 - - - - ---------------------------------------------------------------------------In issue at end of period 251,038,472 2,510,386 249,628,324 2,496,284 250,000,864 2,500,010 =========================================================================== 7. Reserves Share Share Profit Premium Merger Option and loss Account Reserve Reserve Account £ £ £ £As at 1 April 2006 5,312,243 6,273,909 871,944 (6,108,508) Premium on shares issued in relation to SEDA fee 79,624 - - -Loss for the period - - - (1,745,308)Fair value of unvested share options - - 62,099 - ---------------------------------------------As at 30 September 2006 5,391,867 6,273,909 934,043 (7,853,816) ============================================= 8. Reconciliation of operating loss to net cash outflow from operating activities Six months Six months Year ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 (unaudited) (unaudited) (unaudited) £ £ £ Operating loss (1,678,531) (1,553,494) (3,552,779)Depreciation and amortisation 248,857 131,530 379,876UITF 17 charge - 469,577 469,576FRS 20 share option comensation charge 62,099 17,865 67,147(Increase)/ decrease in stocks (32,907) (8,391) (46,931)Decrease/ (increase) in debtors 206,344 48,847 (204,296)(Decrease)/ increase in creditors 12,046 (116,233) 145,745 ----------------------------------------Net cash outflow from operating activities (1,182,092) (1,010,298) (2,741,662) ======================================== 9. Reconciliation of net cash flow to movement in net funds Six months Six months Year ended ended ended 30-Sep-06 30-Sep-05 31-Mar-06 (unaudited) (unaudited) (unaudited) £ £ £ (Decrease) increase in cash in the period (1,158,760) 2,691,947 1,060,554 (Decrease) increase in debt - 622 622 --------------------------------------- Change in net funds resulting from cash flows (1,158,760) 2,692,569 1,061,176 Decrease in debt - non cash - 400,000 400,000 Opening net funds 2,166,243 705,067 705,067 -------------------------------------- Closing net funds 1,007,483 3,797,636 2,166,243 ====================================== 10. Analysis of net funds At Cash Other At 01-Apr-06 flow non-cash 30-Sep-06 changes £ £ £ £ Cash at bank and in hand 2,166,243 (1,158,760) - 1,007,483 -------------------------------------------------- Total 2,166,243 (1,158,760) - 1,007,483 ================================================== This information is provided by RNS The company news service from the London Stock Exchange