TILS.L Regulatory News (TILS)

15 Sep 2005 07:48

ReGen Therapeutics PLC15 September 2005 ReGen Therapeutics Plc Interim Results for the Six Months' to 30 June 2005 CHAIRMAN'S STATEMENT Our interim results show the impact of the expansion of the group planned at theend of 2004. Our research costs were up 52% reflecting the increased scientificwork during the period. Other costs, which basically encompass the doubling ofour staff size, rose commensurately. However, the story is not about costs but what we have achieved during the halfyear and a number of substantial milestones were reached during that period. • On the pure research side we announced on the 27 April that a synthetic peptide derived from ColostrininTM had shown activity in vitro in Parkinson's disease. In the opinion of the principal investigator it was worth further examination in this area. • On the 20 June we announced that we had successfully defined the production process for ColostrininTM at industrial scale. • Two new patents were issued in the US. On the 14 February a patent was issued for neuronal cell differentiation and on the 4 March one was issued to cover the use of ColostrininTM on dementia including Alzheimer's disease. • Finally at the end of the period on the 27 June we announced a publication in the journal 'Neuropeptides' by researchers working for us at Roswell Park in New York. The publication of this study in a peer reviewed journal is an important scientific milestone as it confirms that ColostrininTM reduces the aggregation and toxicity of Alzheimer's disease peptide (beta-amyloid) and protects nerve cells in vitro. We should stress that the US market accounts for over half the developed worldsales of central nervous system drugs and 35% of the global nutraceuticalmarket. Our previously announced production in South Dakota and our scientificprogress in the US is important in the development of the Company, in particularwe will be able to supply the US market from the US, which is a key element inour strategy. Percy W LomaxExecutive Chairman15 September 2005 Further information:Andrew MarshallMarshall Robinson RoeTel: 020 7960 6007 ReGen Therapeutics Plc Interim Results for the Six Months' to 30 June 2005 Consolidated Profit and Loss AccountFor the six months ended 30 June 2005 Unaudited Unaudited Audited 6 months to 6 months to Year to 30-Jun-05 30-Jun-04 31-Dec-04 (£000) (£000) (£000) Turnover 100 - 99 Cost of sales 43 - 45 Gross profit 57 - 54 Administrative costs Development costs 313 206 457 Other 780 484 1,063 Goodwill amortisation 47 37 78 1,140 727 1,598 Operating loss (1,083) (727) (1,544) Interest Receivable 24 27 46Interest Payable (5) (2) (4) Loss on ordinary activities before taxation (1,064) (702) (1,502) Tax on ordinary activities (30) (30) (114) Loss on ordinary activities after taxation (1,034) (672) (1,388) Loss per share (basic and diluted) (0.30)p (0.24)p (0.49)p ReGen Therapeutics Plc Consolidated Balance Sheet Unaudited Unaudited Audited As at As at As at 30-Jun-05 30-Jun-04 31-Dec-04 (£000) (£000) (£000) Fixed AssetsIntangible assets 2,178 1,801 2,190Tangible assets 24 7 19 2,202 1,808 2,209 Current assetsStocks 2 - 1Debtors 194 74 1,163Cash at bank 572 1,145 771 768 1,219 1,935 Creditors: amounts falling due within one year (461) (191) (601) Net current assets 307 1,028 1,334 Net assets 2,509 2,836 3,543 Capital and reservesShare Capital - Issued and fully paid 342 280 342 - Deferred 5,298 5,298 5,298Share premium 9,173 8,055 9,173Other reserves 242 - 242Profit and loss account (12,546) (10,797) (11,512) Equity shareholders' funds 2,509 2,836 3,543 ReGen Therapeutics Plc Consolidated Cash Flow Statement Unaudited Unaudited Audited 6 months to 6 months to Year to 30-Jun-05 30-Jun-04 31-Dec-04 (£000) (£000) (£000) Operating loss (1,083) (727) (1,544)Amortisation 57 43 93Depreciation 4 2 5Increase in stocks (1) (1)Decrease/(Increase) in debtors 957 430 (571)(Decrease)/increase in creditors (117) (81) 257 Net cash outflow from operating activities (183) (333) (1,761) Returns on investments and servicing of financeInterest received 24 27 46Interest paid (5) (2) (5) Taxation 43 - - Capital expenditure and financial investmentPayments to acquire tangible fixed assets (10) (4) (4)Payments to acquire intangible fixed assets (45) (19) (66) AcquisitionsPurchase of a subsidiary undertaking:Acquisition expenses - - (73)Net overdraft acquired with subsidiary - - (115) Net cash outflow before management (176) (331) (1,978)of liquid resources and financing Management of liquid resourcesDecrease/(Increase) in short term deposits 243 (209) 206 FinancingProceeds of shares issued for cash - 500 1,748Expenses paid on share issue - (20) (95) - 480 1,653 Increase/(Decrease) in cash 67 (60) (119) Notes to the Interim Report: Basis of preparationThe results for the six months ended 30 June 2005 are unaudited and have beenprepared on a basis consistent with the statutory accounts for the year ended 31December 2004. The comparative amounts for the year ended 31 December 2004 donot constitute statutory accounts within the meaning of Section 240 of theCompanies Act 1985 but have been extracted from the audited statutory accountsdelivered to the Register of Companies on which the auditors issued anunqualified report which did not contain a statement under section 237 of thatAct. Loss per shareThe calculation of loss per share is based on the weighted average number ofshares in issue for the period of 341,919,720 and the loss for the period of£1,034,000. Reconciliation of movements in equity shareholders' funds 30-Jun-05 (£000) Loss for the six months (1,034)New share issues -Premium on new share issues net of issue costs - Decrease to equity shareholders' funds (1,034) Opening equity shareholders' funds 3,543 Closing equity shareholders' funds 2,509 Intangible fixed assets Costs amounting to £45,000 relating to patent rights have been capitalised forthe six months to 30 June 2005 in accordance with the company's statedaccounting policy. This information is provided by RNS The company news service from the London Stock Exchange