Synectics Regulatory News (SNX)

13 Jun 2007 07:01

Synexus Clinical Research PLC13 June 2007 SNX.L SYNEXUS CLINICAL RESEARCH PLC Preliminary Results for the year ended 31 March 2007 Synexus Clinical Research PLC ('Synexus' or 'the Company'), which provides clinical trials services for the global pharmaceutical industry, today announcesits preliminary results for the year ended 31 March 2007. HIGHLIGHTS . Total turnover up 8% at £10.3 million (2006: £9.5 million) includes investigator fees up 11% to £9.0 million (2006: £8.1 million) . Profit before tax and goodwill was £0.7 million - ahead of revised market expectations (2006: £1.4 million). . Continued progress made in line with our strategy to replicate our well established UK model. . Clinic opened in Sofia, Bulgaria. . Acquisition of Diagnostic Units Hungary in June 2006 . Acquisition of Clinical Research Centres (SA) Pty Ltd in March 2007 . The total number of patient visits for the year was over 32,500 - an increase of almost 9% over 2006 . Creation of larger "Super Hubs" in the UK has increased capacity by 50% . Strengthening of plc and operational boards . Creation of Scientific Advisory Board chaired by Professor Trevor M Jones Commenting on the results, Executive Chairman, Mike Redmond, said, "Existing signed contracts and bids under negotiation give the Board confidence that its expectations for the current financial year will be met. By the end of the first half, based on the above criteria, activity levels across the operations will be substantially increased with beneficial impact on profits. "This year has seen the Company make major progress in building a multi-countryoperation, reflecting an increasing interest from our clients in how Synexus canaddress their clinical trial needs. With a much strengthened executive team, theCompany is well placed to achieve profitable growth." Press enquiries Synexus Clinical Research PLC Tel: +44 (0)1257 230 723Michael Fort, Chief ExecutivePaul McCluskey, Finance Director Biddicks - Financial Public Relations Tel: +44 (0)20 7448 1000Zoe Biddick Brewin Dolphin Securities Tel: +44 (0)845 270 8600Mark Brady Chairman's Statement The attached financial information reviews the first full financial year sincethe flotation of the Company on AIM in November 2005. Considerable progress hasbeen made in building the foundations of a multi-country operation to meet theclinical trial needs of our clients and in securing acceptance among thoseclients of the new more cost effective approach we offer, compared withtraditional methods of patient recruitment. Financial Results Turnover for the year was £10.3 million against £9.5 million for the previousyear. Profit at the EBITDA level was £0.9 million versus £1.9 million, andprofit before tax was £0.4 million against £1.2 million in the previous year. Inour trading update of 26 January 2007, we drew attention to an unusually largenumber of contracts whose start dates had been delayed by clients and indicatedthat the effect of the delays would be to reduce prospects for the financialyear as a whole. The results we are announcing today are in line with ourexpectations at that time. Net cash at the year-end was £0.4 million. It is important to note that only one of the studies that were the subject ofdelays has been lost; some have now started, although others continue to bedelayed beyond our control by sponsors. Strategy Synexus' strategy since flotation has been to replicate its UK capability torecruit large numbers of patients into later stage clinical trials in a numberof countries increasingly important to our clients' clinical researchprogrammes. This strategy largely involves the acquisition of existing researchsites in those countries to provide the footprints for subsequent expansion asincreasingly we win larger multi-country contracts. Accordingly, in addition to the site acquired in Poland in early 2006 and thepartnership established in India in December 2005 we have further acquiredestablished research sites in Hungary and South Africa. We have also started agreenfield operation in Bulgaria. Taken together with our original UK operations, we can now offer to our clientsthe same high standard clinical research capabilities in six countries. We are making good progress with our pharmaceutical clients in gainingacceptance of our model for clinical trials, substantiated by the increasinglevel of enquiries and bids and by our confirmed order pipeline, described indetail in the Chief Executive's review. However, like many other examples ofinnovative ways of operating, it does take time for concepts to be fully adoptedand acted upon. We are devoting increased resources to our sales and marketingprogrammes to accelerate the uptake of our services. People The senior management team has been greatly strengthened during the year,firstly by the appointment of Paul McCluskey as Chief Financial Officer inSeptember 2006, and more recently of Alan Boyce as Chief Operating Officer. Bothbring extensive operational experience to the Group and, in the case of AlanBoyce, long experience of our industry. Since the end of the financial year, wehave made a further appointment of a senior sales executive, Chris Hannigan,whose previous roles were in the contract clinical research sector. With hisextensive industry expertise, this appointment represents a significant additionto our sales development activities. These appointments clearly impact our overheads, but are strategically importantbuilding blocks in strengthening the management of the business, directed firmlyat growing our profits and hence shareholder value. After six years with the Company as Chairman, I shall be retiring as a directorat the forthcoming Annual General Meeting. I would like to take this opportunityto wish the Company well for the future. Current Trading and Prospects Existing signed contracts and bids under negotiation give the Board confidencethat its expectations for the current financial year will be met, havingprudently factored in delays to the start of contracts based on recentexperience. With the profile of signed studies, factored-in delays and the impact ofnecessary increases in overheads, it will be some months into the currentfinancial year before profitability increases from most recent levels. By theend of the first half, based on the above criteria, activity levels across theoperations will be substantially increased with beneficial impact on profits. Michael RedmondExecutive Chairman 13 June 2007 Chief Executive's Review Overview The previous 12 months represent a pivotal year for your Company. Just over ayear ago Synexus was a domestic UK business offering patient recruitmentsolutions to the UK affiliates of major multinational pharmaceutical companies.With the completion of our most recent acquisition in Pretoria, South Africa,and following the previous openings and acquisitions in India, Poland, Hungaryand Bulgaria, we now have a footprint in six countries. As a trulyinternational, patient focussed contract research organisation (CRO) we are ableto offer worldwide solutions to our customers. This enables us to bid forstudies that were previously inaccessible to us, increase the volumes ofpatients offered to studies and widen our therapeutic capability to include newdisease areas such as Chronic Obstructive Pulmonary Disorder (COPD) andRheumatoid Arthritis (RA). 2006/2007 also saw Synexus complete the recruitment of almost 3,000 patients toa single study for a major pharmaceutical client; we believe this is the largestnumber of patients ever recruited by one organisation to a late stage clinicaltrial. Synexus recruited over 20% of the worldwide patient requirements fromless than 1% of the sites in the study. This demonstrates the Synexus valueoffering to clients. Increasingly we are bidding for more studies in a similarvein. Our international footprint, underpinned by our established UK operation,significantly enhances our capacity to develop this strategic model further. The Market The clinical trials process remains underpinned by a very inefficient model,particularly in regard to patient recruitment and retention. Our clients tell usof increasing difficulties in achieving recruitment targets due to problems withaccess to patients, delays in study starts at sites, increasingly complexprotocols with much higher safety hurdle rates and so on. For instance, onemajor Synexus client spent $17 million in the UK in 2005 on establishinggreenfield trial sites that failed to recruit a single patient, whilst theaverage cost of opening a single General Practitioner (GP) site to globalpharmaceutical companies is between $25,000 and $37,000, yet 40% will onlyrecruit one patient. Also 60% of GP sites will only ever carry out one trial,finding the whole process too onerous, leading to a lack of establishedknowledge base as well as increasing inefficiencies. These are key factors whythe industry average number of patients recruited per site across all trials isfewer than five (source: CenterWatch Trials Listings 2006). Despite such issues, the clinical trials market continues to grow, driven by theindustry's need to innovate, combined with much more stringent safetyregulations in the post Vioxx era. Total pharmaceutical R&D spending is set tomove from $115 billion in 2007 to $148 billion by 2009 (source: ThomsonCenterWatch/Goldman Sachs), whilst the spending on contract research grants isexpected to grow at a compound annual growth rate of 14.8% in the same period.Against this background, the patient recruitment market is increasinglychallenging for pharmaceutical companies and CROs alike. 88% of trialinvestigators in Europe are part time, with over 80% of investigators globallyonly ever carrying out fewer than five trials throughout their careers (Source:Thomson CenterWatch). The Synexus solution addresses all of the above issues andour main goal is to continue to educate our clients into fully embracing ourmodel as the cornerstone to their clinical trial strategy. An increasing numberof clients are accepting this and we are becoming service provider of choice fora number of major pharmaceutical companies. Indeed, we recently signed ourfourth master services agreement with a leading international company. Again,the acquisitions made in overseas operations together with the significantexpansion of our capacity within the UK places the Company in a strong positionto exploit this demand. Operational and Financial Review As previously reported, total turnover at £10.3 million was up by £0.8 millionon the previous year. Investigator fee revenue included in this was £9.0million, up from £8.1million, an increase of almost 11%. Total direct andoperating costs at £10.0 million were up from £8.0 million in financial year2006 reflecting the increased capacity in the business and the cost ofacquisitions. In the UK, payroll costs increased by £0.4m, an additional £0.2mwas spent on marketing & business development and property costs increased by£0.2m. The acquisition of DUH increased costs by £0.7 million and the full yearimpact of the SCM acquisition accounted for a further increase of £0.3 million. The results from CRC (South Africa) could not be consolidated as completion ofthe acquisition was only finalised immediately prior to the year-end, followinga review of the acquisition structure to meet the requirements of the SouthAfrican Reserve Bank. However, the results from the subsidiary for the year werevery encouraging and profits were in line with expectations. In January we reported a delay in studies to start, resulting in a shortfall inresults against prevailing market expectations for the full year. Although studydelays are not unusual in the contract research market, the number of delayedcontracts that affected us was particularly high. Of around 20 studies we wereexpecting to start in the fourth quarter, nine were delayed. All concentrationsince then has been focused on delivery of existing contracts and I am pleasedto report that we have ended the year marginally ahead of the market's revisedexpectations. We have learned from this experience and taken an even moreprudent approach to our project planning and forecasting for the future. In order to address the opportunities most effectively, the core operation inthe UK has undergone major change in order to increase both capacity andefficiencies in our home market, from which we still currently derive thegreater majority of our income. The two smaller sites in Glasgow have beenconsolidated into one much larger new site, renamed as the Scottish ResearchCentre. Our two original sites in Wigan and Chorley have been merged into thepurpose designed Lancashire Research Centre near Preston, which is much betterplaced for all major communication links. Our small satellite centre in Coventryhas been merged into the Midlands Research Centre in Birmingham and theavailable clinical area more than doubled. Similarly, Liverpool has been mergedwith Crosby into the Merseyside Research Centre, again with over a doubling offloor area. Plans have recently been agreed to relocate our outdated Readingsite to another purpose designed Thames Valley Research Centre also in Reading.This Centre will also house a sales office much closer to the sites of our majorclients based in the UK. All of this has had the effect of significantlyimproving the throughput of our UK sites, allowing us to increase capacity byaround 50%. The increase in capacity with the acquisition of new clinical space meant thetotal number of patient visits during the year increased to over 32,500. Thesefigures do not include South Africa for reasons discussed above and only includeSynexus Hungary for the period since its acquisition in June 2006. We lookforward to their full year contributions in 2007/2008. Synexus Poland, acquiredin February 2006, made a positive contribution to the Company and on onecompetitive study in particular was the fastest recruiting site, contributingover 200 randomised patients in record time. Our new greenfield site in Sofia,Bulgaria won and completed its first clinical trial towards the end of the yearand contributed patients to a previously difficult therapeutic area for us inCOPD. Our presence in Central and Eastern Europe (CEE) is becoming a veryimportant hub of operations, not only in gaining access to new patientdemographics, but also in broadening the spread of therapy areas. As our operations in India and South Africa become further established, we see abroadening of the therapy areas that can be offered to our clients. The mainfocus of the studies will continue to concentrate on Phase 3, but we see also anopportunity in accelerated Proof of Concept studies in Phase 2 trials, abusiness area that we are exploring with two major pharmaceutical clients. Wenow work with all of the top 10 international pharmaceutical companies andimportantly are seeing a broader spread of business across those clients,lessening the dependence on one or two key trials. People Paul McCluskey joined the board as Chief Financial Officer in September and hasmade tremendous progress in developing the Company's reporting systems to meetthe needs of our expanding operational base. The board was boosted towards theend of the year with the appointment of Alan Boyce as Chief Operating Officer.Alan joins the Company from Kendle International, one of the world's leadingcontract research organisations where he held the post of Vice President GlobalClinical Development. Alan's knowledge of our market is already proving to be aninvaluable asset to the business as we seek to grow our offering in our existingmarkets as well as in new ones. We have additionally strengthened our sales teamwith the appointment to our Operational Board of Chris Hannigan as VicePresident International Business Development. Chris also brings a wealth ofexperience from the international CRO market. I believe we now have a firstclass executive board, capable of delivering strong future growth inprofitability. I am delighted to report that Professor Trevor M Jones is working with thecompany in chairing our Scientific Advisory Board. Professor Jones was DirectorGeneral of the Association of the British Pharmaceutical Industry from 1994 to2004 and formerly the R&D Director for the Wellcome Foundation. He has a wealthof experience within the international pharmaceutical industry and his knowledgeand contacts in the industry are proving a real asset to our business. I am grateful for the continued dedication and professionalism of our staff andI welcome those new staff members to the Company who have joined in the last 12months in different areas of the world. Our UK team has gone through asignificant period of change with the opening of new sites and the moving ofothers whilst keeping patients and studies on target and the sincere thanks ofthe Board is passed to all. As noted in the Chairman's Report, Mike Redmond retires from the board at theAnnual General Meeting after six years with Synexus. The Board would like totake this opportunity to thank him for his contribution to the Company. MalcolmHughes, our senior independent non-executive director will fill the position ofnon-executive Chairman until a suitable replacement is found. Current Trading and Outlook The level of enquiries reflects the continued buoyancy of the market and theincreasing reliance of our major clients on outsourcing to CROs such as ours andI am pleased to report that the current year has started on plan. As of the date of this report, the value of the bid pipeline has increased from£22.8 million (September 2006) to £27.0 million. The value of contracted ordersstands at £11.8 million, generating a book to bill ratio on firm orders of 1.1. Our sales focus on the United States is beginning to deliver results. Morediscussions are taking place with US budget holders at the leadingpharmaceutical companies regarding the allocation of resources internationallythrough Synexus on the basis of "fourteen centres, six countries, one contract".A number of the potential contracts in our pipeline reflect this offering. We will continue to research the market to identify future acquisitionopportunities that can expand our operational capability and enhance shareholderreturns. However, our primary focus during the current year will be onoptimising operational performance from our expanded network of sites. The Synexus model, as an international, patient focused CRO, continues to gainacceptance and I look forward to reporting further progress to you in the nearfuture. Michael J FortChief Executive Officer 13 June 2007 Consolidated Profit and Loss Accountfor the year ended 31 March 2007 Note 2007 2006 £000 £000 Turnover -------- --------Continuing operations 9,547 9,542Acquisitions 784 - -------- -------- 10,331 9,542Cost of sales (5,390) (4,719) --------- --------Gross profit 4,941 4,823 Operating expenses -------- --------Amortisation of goodwill (295) (213)Other operating expenses (4,318) (3,079) -------- --------Total operating expenses (4,613) (3,292) --------- --------Operating profit -------- --------Continuing operations 230 1,531Acquisitions 98 - -------- --------Total operating profit 328 1,531 --------- --------Interest -------- --------Interest receivable and similar income 70 27Interest payable and similar charges (39) (326) -------- -------- 31 (299) --------- --------Profit on ordinary activities before taxation 359 1,232Taxation 3 122 29 --------- --------Profit for the financial year 481 1,261 ========= ========Basic earnings per share 2 2.1p 6.8p ========= ========Diluted earnings per share 2 2.1p 6.8p ========= ======== Consolidated Statement of Total Recognised Gains and Lossesfor the year ended 31 March 2007 2007 2006 £000 £000 Profit for the financial year 481 1,261Currency translation differences on foreigncurrency net investments 37 - -------- --------Total recognised gains and losses relating to the year 518 1,261 ======== ======== Consolidated Balance Sheetat 31 March 2007 Note 2007 2006 £000 £000Fixed assetsIntangible assets 5 5,709 3,881Tangible assets 1,415 514Investments 22 - ------------- ------------- 7,146 4,395 ============= =============Current assetsDebtors 2,689 2,428Deferred tax 246 103Cash at bank and in hand 1,490 1,982 ------------- ------------- 4,425 4,513Creditors: amounts falling due within one year (3,542) (2,020) ------------- -------------Net current assets 883 2,493 ------------- -------------Total assets less current liabilities 8,029 6,888Creditors: amounts falling due after more than one year (485) (251) ------------- -------------Net assets 7,544 6,637 ------------- -------------Capital and reservesCalled up share capital 2,315 2,279Share premium account 2,491 2,491Merger reserve 1,471 1,253Capital redemption reserve 2,661 2,661Exchange reserve 37 -Share based payment reserve 44 -Profit and loss account (1,475) (2,047) ------------- -------------Equity shareholders' funds 7,544 6,637 ============= ============= Consolidated Cash Flow Statementfor the year ended 31 March 2007 Note 2007 2006 £000 £000 Net cash inflow from operating activities 6 851 899 Return on investments and servicing offinance 31 (28) Taxation (28) - Capital expenditure and financial investment (1,021) (71) Acquisitions and disposals (1,090) (53) ------------- -------------Cash (outflow)/inflow before financing 7 (1,257) 747 Financing 765 807 ------------- -------------(Decrease)/increase in cash in the year 7 (492) 1,554 ============= ============= Notes to the Financial Information 1. Basis of preparation and financial information The financial information in this preliminary announcement has been prepared inaccordance with the accounting policies set out in the financial statements ofSynexus Clinical Research Plc for the year ended 31 March 2006, which haveremained unchanged for the financial year ended 31 March 2007. The financial information in this document does not constitute the Company'sstatutory accounts for the year ended 31 March 2007, but is derived from thoseaccounts. Statutory accounts for 2007 will be delivered to the Registrar ofCompanies following the company's Annual General Meeting. The auditors havereported on these accounts; their reports were unqualified and did not containstatements under sections 237 (2) or (3) of the Companies Act 1985. 2. Earnings Per Share Earnings per share is calculated on the basis of the profit for the year dividedby the weighted average number of shares in issue for 2007 of 22,956,871 (2006:18,656,563). An adjusted earnings per share, which excludes goodwill amortisation, has beencalculated to allow shareholders to gain a greater understanding of the tradingperformance of the Group. The diluted earnings per share takes the weighted average number of shares inissue during the year to 31 March 2007 and adjusts this for dilutive shareoptions existing at the period end. This results in a diluted average number ofshares of 23,276,638. 2007 2006 Earnings Number of Pence Earnings Number of Pence attributable to shares per attributable to shares per ordinary share ordinary share shareholders shareholders £000 Number p £000 Number p Basic earningsper share 481 22,956,871 2.1 1,261 18,656,563 6.8Amortisationof goodwill 304 - - 213 - -Adjusted earningsper share 785 22,956,871 3.4 1,474 18,656,563 7.9 Diluted earningsper share 481 23,276,638 2.1 1,261 18,656,563 6.8Amortisationof goodwill 304 - - 213 - -Adjusted dilutedearnings per share 785 23,276,638 3.4 1,474 18,656,563 7.9 3. Taxation Analysis of (charge)/credit in period 2007 2006 £000 £000UK corporation taxCurrent tax on income for the period - - Foreign taxCurrent tax on income for the period (21) - -------- --------Total current tax (21) - Deferred tax 143 29 -------- --------Tax on profit on ordinary activities 122 29 ======== ======== Taxable losses available for relief against future taxable profits in the UKamount to approximately £533,000 (2006: £962,000). Factors affecting the tax charge for the year The differences are explained below: 2007 2006 £000 £000 Profit on ordinary activities before taxation 359 1,232 -------- --------Profit on ordinary activities multiplied by the rate ofcorporation tax in the UK at 30% (2006: 30%) 108 370 Effects of:Capital allowances in excess of depreciation (16) (22)Expenses not deductible for tax purposes 34 -Goodwill amortisation 86 61Reversal of short term timing differences (66) -Short term timing differences (29) 10Losses(utilised)/carried forward (63) (414)Group relief 11 (5)Differences on overseas rate (19) -Other (25) - -------- --------Current tax charge for year 21 - ======== ======== 4. Acquisitions Diagnostic Units Hungary Kft On 5 June 2006 the Company acquired the entire issued share capital ofDiagnostic Units Hungary Kft. The initial consideration of €1.5m was satisfiedby payment of €1.0m in cash (£689,000) and the allotment of 362,976 shares at aprice of 95p per share. A further €500,000 is payable on the first anniversary of the acquisition basedon successful retention of key personnel within the acquired business. Such keypersonnel were in employment at 13 June 2007, therefore the Directors haveaccrued £345,000 within deferred consideration to account for this expectedliability. The acquisition has been accounted for using the acquisition method ofaccounting and goodwill arising on the acquisition, as shown below, has beencapitalised and will be amortised over a period of 20 years being the expecteduseful economic life. The unaudited accounts of the Company for the 5 month period from the beginningof its financial year to the date of acquisition show a net profit of £182,674.In its previous financial year the reported profit was £103,245. Book Adjustments Fair value value £000 £000 £000 Fixed assetsTangible 106 - 106 Current assetsDebtors 426 426Cash 93 - 93 -------- -------- --------Total assets 625 - 625 ======== ======== ========Creditors (222) - (222) -------- -------- --------Total liabilities (222) - (222) ======== ======== ========Net assets acquired 403 - 403 ======== ======== ========Consideration given:Initial cash consideration 689Initial share consideration 345Deferred consideration 345Professional fees 62 Purchase consideration and costs ofacquisition 1,441 ========Goodwill arising on acquisition 1,038 ======== Clinical Research Centres (South Africa) (Pty) Ltd On 30 March 2007 the Company acquired the entire share capital of ClinicalResearch Centres (South Africa) (Pty) Ltd. The initial consideration of ZAR7,868,638 was satisfied entirely in cash (£564,060). A further payment of ZAR3,433,805 was due shortly after the year end on receipt of outstanding taxcertificates. The relevant documents have since been received therefore theDirectors have accrued £246,000 within deferred consideration for thisliability. A payment of £246,175 is payable based on the results for the year ended 31March 2007. Funds of £246,175 were held in escrow at the year end to met thisliability. These funds are shown within cash at the year end. A further ZAR 10,263,409 could become payable based on the results for the yearended 31 March 2008. Based on current expectations of performance, the Directorsdo not expect to make payment of deferred consideration. The acquisition has been accounted for using the acquisition method ofaccounting and goodwill arising on the acquisition, as shown below, has beencapitalised and will be amortised over a period of 20 years being the expecteduseful economic life. The acquired undertaking made a profit of £112,676 from the beginning of itsfinancial year to the date of acquisition. In its previous financial year theCompany's reported profit was £5,917. Book Adjustments Fair value value £000 £000 £000 Fixed assetsTangible 23 - 23Investments 11 - 11 34 - 34Current assetsDebtors 23 - 23Cash 188 - 188 -------- -------- --------Total assets 245 - 245 ======== ======== ========Creditors (210) - (210) -------- -------- --------Total liabilities (210) - (210) ======== ======== ========Net assets acquired 35 - 35 ======== ======== ========Consideration given:Initial cash consideration 564Deferred consideration 492Professional fees 64 ========Purchase consideration and costs ofacquisition 1,120 ========Goodwill arising on acquisition 1,085 ======== Skandynawskie Centrum Medyczne Sp.Z o.o. (SCM) Deferred consideration of £1,400,000 was payable in cash and/or ordinary sharesdependent on the level of the profit after tax of SCM for the year ending 31March 2007. Based on the results for this period this amount is no longerpayable and hence not recognised in the financial statements. 5. Intangible fixed assets Goodwill £000CostAt 1 April 2006 5,047Acquisitions 2,123 --------At 31 March 2007 7,170 ========AmortisationAt 1 April 2006 1,166Charge for year 295 --------At 31 March 2007 1,461 ========Net book valueAt 31 March 2007 5,709 ========At 31 March 2006 3,881 ======== 6. Reconciliation of operating profit to operating cash flows 2007 2006 £000 £000 Operating profit 328 1,531Share based payment charge 44 -Depreciation and amortisation charges 545 324Decrease/(increase) in debtors 213 (737)Decrease in creditors (279) (219) -------- --------Net cash inflow from operating activities 851 899 ======== ======== 7. Reconciliation of net cash flow to movement in net debt 2007 2006 £000 £000 (Decrease)/increase in cash during the period (492) 1,554Cash (inflow)/outflow from (increase)/decrease in debt (765) 1,927 Change in net debt resulting from cash flows (1,257) 3,481Debt acquired with subsidiary (51) (264)Debt capitalised into share capital - 3,297Exchange movements on debt acquired (2) -Interest accrued - (271)Interest waived - 1,172 -------- --------Movement in net debt in the period (1,310) 7,415Net cash/(debt) at 1 April 1,731 (5,684) -------- --------Net cash at 31 March 421 1,731 ======== ======== 8. Copies of the preliminary announcement are available from the company's Registered Office at Sandringham House, Ackhurst Park, Chorley, Lancashire, PR71NY. The Annual Report and Accounts for the year ended 31 March 2007 will be posted to shareholders on or before 27 June 2007 This information is provided by RNS The company news service from the London Stock Exchange