SUMM.L Regulatory News (SUMM)

25 Apr 2005 07:00

VASTox plc25 April 2005 For immediate release 25 April 2005 VASTox plc ("VASTox" or "the Company") Preliminary results for the year ended 31 January 2005 Oxford, UK, 25 April 2005 - VASTox plc (AIM: VOX), the drug discovery andchemical genomics company, today announces its audited preliminary results forthe year ended 31 January 2005. Highlights: • Significant progress with proprietary programmes in Duchenne Muscular Dystrophy and Tuberculosis • A number of new technology service deals signed during the year • Successful placing on AIM in October 2004, raising £14.1m after expenses • Net cash as at 31 January 2005 of £14.2m Post year end highlights: • Strengthening of the Scientific Advisory Board in key areas of technology and drug development • Relocation to state-of-the-art facilities in Milton Park, Oxfordshire underway. Commenting on the Group's preliminary results, Dr Steven Lee, Chief ExecutiveOfficer of VASTox plc, said: "Since our flotation on AIM in October 2004, wehave continued to sign service deals and progress our development programmes.This summer we are consolidating our research laboratories in London and Oxfordinto a single facility in Milton Park, Oxfordshire. The synergies created byhaving our chemists and biologists in the same laboratories will be reflected inaccelerated technology development, higher value service deals and proprietaryprogramme successes. "With a strong balance sheet, excellent technology, high calibre staff andstate-of-the art facilities, we look forward to building further value in 2005." For more information please contact: VASTox plc (www.vastox.com)Dr Steven Lee, Chief Executive Officer On the day: 07766 913 898 Afterwards: 01865 316917 Buchanan Communications 020 7466 5000Tim Anderson, Mark Court, Mary-Jane Johnson VASTox plc CHAIRMAN'S STATEMENT This year has been one in which VASTox has taken tremendous strides towards itsobjective of becoming the world's leading chemical genomics technology company. As Chairman, I set out at the beginning of the year with the core objective ofaccelerating the growth of the business, having spent the past four yearsbuilding the science and technology. I wanted to recruit the appropriate ChiefExecutive who would build the business, validate the technology with profitablecommercial deals, and strengthen the balance sheet with both revenues and afundraising. I am pleased that we have achieved and indeed surpassed all theobjectives that I had set. OUR APPROACH VASTox uses innovative technology to address the problems associated with thecurrent drug discovery process. For practical reasons, drugs are only trialledon significant numbers of animals at the late stages of development and withthis paradigm, over the past few years, the pharmaceutical industry has sufferedproductivity issues. Over the past twelve months even for marketed drugs, therehas been a number of high profile recalls due to dangerous side effects. VASTox's chemical genomics technology tests potential drugs on statisticallysignificant numbers of fruitfly and zebrafish embryos at an early stage ofresearch, thereby deriving far more information on the effect of the drug inwhole animals. Fruitflies and zebrafish are extensively studied by scientistsbecause they show a striking genetic similarity to humans. By using theseorganisms at an early stage of drug discovery we can improve the chances ofdrugs making it through the human stages of trials and being successful in themarket. This process also has the potential to reduce the number of higheranimals used in testing. The company's business model is to use this technology to both provide servicesto other pharmaceutical companies and for proprietary drug programmes. Theservices business gained profitable new contracts with both a top-tierpharmaceutical company and a number of biotech companies, giving industry thirdparty validation of the company's approach. Our current focus on proprietary programmes is on areas where we haveleveraged-off the leading positions of our academic scientific founders.Professor Kay Davies FRS, CBE, is an expert on Duchenne Muscular Dystrophy (DMD)with more than 20 years' experience in the field. DMD is VASTox's leadprogramme and we have secured patents from both the University of Oxford and theMedical Research Council this year. Professor Edith Sim has discovered apotentially new therapeutic target for tuberculosis called N-acetyl transferase(NAT). During the year, there have been considerable scientific and technicalachievements on these programmes. Additionally, the company has engaged withsome the biggest charitable research organisations globally and progresseddiscussions around collaborations and alliances to tackle these diseases. FINANCING In October, VASTox completed the placing of shares and admission to the LondonStock Exchange's AiM Market raising £14.1m of new money net of costs. Theflotation finances a step-change in the company's operations, and strategicallyfacilitates VASTox to secure better deals by providing balance sheet strength,and improved status. PERSONNEL During the year we welcomed the appointment of Dr Steven Lee as the full-timeChief Executive, who left the main board of IP2IPO Group plc where he wasexecutive director of Life Sciences. Steven brings a wealth of industryexperience having worked in Business Development for Celltech and Vernalis, andas an industry management consultant with PA Consulting Group's Pharmaceuticaland Bioindustries Team. The board recognises that a key strength of VASTox is its people. Throughoutthe year all the employees have worked through the change that has occurredthrough the corporate progression of the business and shown skill, expertise,enthusiasm and a desire to succeed. The scientific founders are firmly engagedin the business as both shareholders and consultants. On behalf of the board wethank them all. LOOKING FORWARD In our first full year as a public company, we will strengthen our business andbuild value for our shareholders. In March we announced a deal to providecarbohydrate chemistry expertise to a UK biotech company. In April we addedthree prestigious scientists to our Scientific Advisory Board, giving yourcompany access to an enviable range of skills. Later in April we signed a leaseon state-of-art new facilities at Milton Science Park, Oxford. We look forwardto continuing this progress throughout the year. Professor Stephen DaviesChairman25 April 2005 VASTox plc Consolidated profit and loss account For the year ended 31 January 2005 Year ended Period ended 31 January 31 January 2005 2004* Note £ £ Turnover 112,718 1,440Cost of sales (279,221) (740) _____________________________Gross loss (166,503) 700Administrative expenses (572,221) (24,099) _____________________________Operating loss (738,724) (23,399)Interest receivable 215,368 1,008 _____________________________Loss on ordinary activities before taxation (523,356) (22,391) Tax on loss on ordinary activities 24,321 - _____________________________ Retained loss for the year (499,035) (22,391) _____________________________ Loss per shareBasic 3 2.69p 0.12p _____________________________Fully diluted 3 2.49p 0.12p _____________________________ * Comparative figures are for the 11 and a half month period ending 31 January 2004. VASTox plc Consolidated balance sheet As at 31 January 2005 31 January 31 January 2005 2004 £ £ £ £ NoteFixed assetsIntangible fixed assets 20,000 -Tangible fixed assets 1,353 -Investments 2,020,198 - ____________ ____________ 2,041,551 -Current assets Debtors 93,140 202Cash at bank 361,252 79,591Cash on short term deposits 13,800,000 ____________ ____________ 14,254,392 79,793Creditors: amounts falling due within one year (185,849) (2,184) ____________ ____________ Net current assets 14,068,543 77,609 ____________ ____________Total assets less current 16,110,094 77,609 ____________ ____________ Capital and reservesCalled up share capital 3,131,311 1,000Share premium account 12,946,848 99,000Other reserves 4 530,970 -Profit and loss account 4 (499,035) (22,391) ____________ ____________Equity shareholders' funds 16,110,094 26,234 ____________ ____________ VASTox plc Consolidated cash flow statement For the year ended 31 January 2005 31 January 31 January 2005 2004* £ £Net cash flow from operating activities (184,863) (21,215) ____________ ____________Returns on investments and servicing of finance Interest 215,368 1,008 ____________ ____________Net cash inflow from returns on investments andservicing of finance 215,368 1,008 ____________ ____________ Taxation received - (202)UK Corporation TaxCapital expenditure and financial investment Purchase of fixed assets (1,803) - Purchase of intangible assets (5,000) - ____________ ____________Net cash outflow for capital expenditure (6,803) - ____________ ____________Cash inflow before use of liquid resources andfinancing 23,702 (20,409) ____________ ____________Management of liquid resources Increase in cash held on short term deposit (13,800,000) - ____________ ____________FinancingProceeds from the issue of shares 15,000,000 100,000Expenses of issue of share capital (942,041) - ____________ ____________Net inflow from financing 14,057,959 100,000 ____________ ____________Increase in cash in the year 281,661 79,591 ____________ ____________ VASTox plc Notes 1. The financial information set out in this preliminary announcement does not constitute the company's statutory accounts, but has been extracted from the company's statutory accounts for the years ended 31 January 2004 and 2005. The auditors' reports on the statutory accounts for the years ended 31 January 2004 and 2005 were unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for the year ended 31 January 2004 have been delivered to the registrar, while the statutory accounts for the year ended 31 January 2005 will be delivered to the registrar following the company's annual general meeting. This financial information has been prepared on the basis of the accounting policies set out in the annual financial statements for the year ended 31 January 2004. 2. Availability of statutory accounts Copies of this announcement and the full statutory accounts will be available from the registered office at 91 Milton Park, Abingdon, Oxfordshire, OX14 4RY and from the offices of the Group's nominated advisor, KBC Peel Hunt, 111 Old Broad Street, London, EC2N 1PH. 3. Basic and diluted loss per ordinary share The basic and diluted loss per ordinary share is based on losses attributable to ordinary shareholders for the year of £499,035 (2004: loss of £22,391). The basic loss per share is based on the weighted average number of ordinary shares of 19,023,556 in issue during the year (2004: 19,023,556). The diluted loss per ordinary share in 2005 is based on the weighted average number of ordinary shares plus the potentially dilutive options over ordinary shares of 1,010,189. 4. Reconciliation of shareholders' funds 2005 2004 Group £ £ Loss for the year (499,035) (22,391) Shares issued during the year 3,131,311 1,000 Share premium on shares issued (net of expenses) 12,946,848 99,000 Shares to be issued 453,361 - Merger reserve 77,609 - _________________________ Closing shareholders' funds 16,110,094 77,609 _________________________ 2005 Company £ Loss for the year (275,604) Shares issued during the year 3,131,311 Share premium on shares issued (net of expenses) 12,946,848 Shares to be issued 453,361 _____________ Closing shareholders' funds 16,255,916 _____________ 5. Notice of AGM The Annual General Meeting will be held at 10am on 3 June 2005 at VASTox plc, 91 Milton Park, Abingdon, Oxfordshire, OX14 4RY. This information is provided by RNS The company news service from the London Stock Exchange