Last checked at 16 Oct 2008 07:00
16 October 2008
Oxeco Plc (the "Company" or the "Group" )
Interim financial report for the six months ended 31 July 2008
Chairman's Statement
I am pleased to report on your Group's performance for the six months ended 31 July 2008.
Oxeco Plc is a holding and management company, specialising in the development and growth of trading businesses within the technology and science sectors. The Company currently has one subsidiary, Oxray Ltd, which was acquired in June 2007 and is a start up business which aims to become a leading provider of molecular structure determination services to both industry and academic institutions.
The unaudited consolidated loss before tax for the Group in six months to 31 July 2008 amounted to £105,000 compared to £3,000 for the comparable period from incorporation on 17 October 2006 to 31 July 2007. Consolidated net assets at 31 July 2008 amounted to £4.77 million including cash balances of £2.64 million versus net assets of £4.93 million and cash balances of £2.81 million a year earlier at 31 July 2007. The cash outflow for the Group during the six months to 31 July 2008 amounted to £120,000 and cash balances continue to be managed prudently, with tight cost control.
Oxray's primary objectives are the development of novel X-ray crystallography structure determination software and the provision of a small-molecule X-ray crystallography structure service. The service uses a web portal behind which the company can work to maximise the extent to which the service can be automated. The Company offers standardised response times to its customers but also offers market premium services such as a fast-response and extended scientific reporting suitable to support customers' patent applications. Oxray expects to complete the initial development of it's X-ray crystallography structure determination software within the next six months and will then focus on the marketing of the service and the establishment of a solid customer base.
Oxeco Plc is well capitalised and I am confident that your Company will continue to make considerable progress in its development during the second half of the year despite turbulent financial markets. Your Directors are continuing to evaluate a range of new commercial and acquisition opportunities which they believe fulfil the Company's original objectives of investing in the technology and science sectors, and especially those which are complimentary to the existing Group activities.
Finally I would like to conclude by thanking our employees and management for their hard work and support in the growth and development of the Group in the period.
Jussi Westergren
Executive Chairman
Contact:
| Michael Bretherton Oxeco plc www.oxecoplc.com | +44 (0) 207352 8989 |
| Ray Zimmerman/Jonathan Evans Zimmerman Adams International Limited | +44 (0) 207 060 1760 |
| Daniel Briggs Religare Hichens, Harrison plc | +44 (0) 207 382 7776 |
OXECO PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 31 JULY 2008
| | Notes | Six months to 31 July 2008 (Unaudited) | Period to 31 July 2007 (Unaudited) | Period to 31 January 2008 (Audited) |
| | | £000 | £000 | £000 |
| | | | | |
| Revenue | | 6 | - | 7 |
| Administrative expenses | | (188) | (95) | (243) |
| | | | | |
| Operating Loss | | (182) | (95) | (236) |
| | | | | |
| Interest receivable | | 77 | 92 | 178 |
| | | | | |
| Loss before tax | | (105) | (3) | (58) |
| | | | | |
| Taxation | 2 | 3 | – | (5) |
| | | | | |
| Loss for the period | | (102) | (3) | (63) |
| Earnings per share Basic and Diluted | 3 | (0.02p) | (0.00)p | (0.01)p |
Comparative figures comprise the period from incorporation on 17 October 2006 to 31 July 2007 and from the period from incorporation on 17 October 2006 to 31 January 2008.
The loss for the period arises from the Group's continuing operations.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 31 JULY 2008
| | Share Capital £000 | Share Premium £000 | Retained Loss £000 | Total Equity £000 |
| At 17 October 2006 | – | – | – | – |
| Issue of shares | 600 | 4,500 | – | 5,100 |
| Expenses of issue of shares | – | (167) | – | (167) |
| Loss for the period | – | – | (3) | (3) |
| At 31 July 2007 | 600 | 4,333 | (3) | 4,930 |
| Loss for the period | - | - | (60) | (60) |
| At 31 January 2008 | 600 | 4,333 | (63) | 4,870 |
| Loss for the period | - | - | (102) | (102) |
| At 31 July 2008 | 600 | 4,333 | (165) | 4,768 |
OXECO PLC
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2008
| | Notes | 31 July 2008 | 31 July 2007 | 31 January 2008 |
| | | (Unaudited) | (Unaudited) | (Audited) |
| | | £000 | £000 | £000 |
| ASSETS Non-current assets | | | | |
| Property, plant and equipment | | 1 | 1 | 2 |
| Intangible assets - goodwill | | 2,120 | 2,120 | 2,120 |
| Total non-current assets | | 2,121 | 2,121 | 2,122 |
| | | | | |
| Current assets | | | | |
| Trade and other receivables | | 38 | 16 | 29 |
| Cash and cash equivalents | | 2,641 | 2,816 | 2,761 |
| Total current assets | | 2,679 | 2,832 | 2,790 |
| | | | | |
| TOTAL ASSETS | | 4,800 | 4,953 | 4,912 |
| | | | | |
| LIABILITIES | | | | |
| Current Liabilities | | | | |
| Trade and other payables | | (30) | (23) | (37) |
| Current taxation | | (2) | - | (5) |
| | | | | |
| TOTAL LIABILITIES | | (32) | (23) | (42) |
| | | | | |
| NET ASSETS | | 4,768 | 4,930 | 4,870 |
| | | | | |
| EQUITY | | | | |
| Issued capital | 3 | 600 | 600 | 600 |
| Share premium | | 4,333 | 4,333 | 4,333 |
| Revenue reserve | | (165) | (3) | (63) |
| TOTAL EQUITY SHAREHOLDERS’ FUNDS | | 4,768 | 4,930 | 4,870 |
Approved by the Board and authorised for issue on 16 October 2008.
J P Westergren M A Bretherton
Chairman Finance Director
OXECO PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 JULY 2008
| | Six months to 31 July 2008 | Period to 31 July 2007 | Period to 31 January 2008 |
| | (Unaudited) | (Unaudited) | (Audited) |
| | £000 | £000 | £000 |
| OPERATING ACTIVITIES | | | |
| Operating loss before taxation | (182) | (95) | (236) |
| Depreciation of property, plant and equipment | 1 | - | - |
| Increase in trade and other receivables | (9) | (16) | (29) |
| Decrease in trade and other payables | (7) | (30) | (15) |
| Net cash outflow from operations | (197) | (141) | (280) |
| | | | |
| INVESTING ACTIVITIES | | | |
| Purchase of property, plant and equipment | - | - | (2) |
| Acquisition of subsidiaries | - | (100) | (100) |
| Cash and bank in subsidiaries at acquisition | - | 32 | 32 |
| Net cash outflow from investing activities | - | (68) | (70) |
| | | | |
| FINANCING ACTIVITIES | | | |
| Proceeds from issue of share capital | - | 3,100 | 3,100 |
| Expenses of issue of share capital | - | (167) | (167) |
| Interest received | 77 | 92 | 178 |
| Net cash inflow from financing activities | 77 | 3,025 | 3,111 |
| | | | |
| (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (120) | 2,816 | 2,761 |
| | | | |
| Cash and cash equivalents at start of period | 2,761 | – | - |
| | | | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 2,641 | 2,816 | 2,761 |
Comparative figures comprise the period from incorporation on 17 October 2006 to 31 July 2007 and from the period from incorporation on 17 October 2006 to 31 January 2008.
OXECO PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 JULY 2008
1) SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The interim financial statements of Oxeco Plc are unaudited condensed consolidated financial statements for the period for the six months period to 31 July 2008. These include unaudited comparatives for the period from incorporation on 17 October 2006 to 31 July 2007 together with audited comparatives for the period from incorporation on 17 October 2006 to 31 July 2007.
The condensed consolidated financial statements have been prepared under the historic cost convention and incorporate the financials of Oxeco Plc for the period and its subsidiary undertaking from the date of acquisition.
The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the period ended 31 January 2008.
The condensed consolidated financial statements do not constitute statutory accounts. The statutory accounts for the period to 31 January 2008 have been reported on by the Company's auditors and have been filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985.
2) TAXATION
The accrued tax charge for the six month period is based on an estimated effective tax rate of nil, after allowance for utilisation of tax losses brought forward in subsidiaries and prior year adjustments, (period to 31 July 2007: effective tax rate nil, period to 31 January 2008: effective tax rate 8.6 per cent.).
3) LOSS PER SHARE
Basic loss per share is based on the net loss for the period of £102,000 attributable to equity holders of the parent divided by the weighted average number of ordinary shares in issue during the period of 600,000,000, (period to 31 July 2007: loss £3,000 divided by the weighted average number of 353,658,537 shares; period to 31 January 2008: loss £63,000 divided by the weighted average of 456,050,955 shares). Fully diluted earnings per share are the same as basic earnings per share.
| 4) SHARE CAPITAL | Number | £’000 |
| Authorised ordinary shares of 1p: | | |
| | | |
| At 31 July 2007, 31 January 2008 and 31 July 2008 | 1,000,000,000 | 1,000 |
| | | |
| Allotted, issued and fully paid ordinary shares of 1p: | | |
| | | |
| At 31 July 2007, 31 January 2008 and 31 July 2008 | 600,000,000 | 600 |
5) RELATED PARTY TRANSACTIONS
During the period the Company entered into the following transactions with Ora Capital Partners Plc (ORA) which as at 31 July 2008 held 45.25% of the Company's issued share capital.
| | Six months to 31 July 2008 | Period to 31 July 2007 | Period to 31 January 2008 |
| | (Unaudited) | (Unaudited) | (Audited) |
| | £000 | £000 | £000 |
| Management consultancy fees charged by ORA | 6 | 7 | 18 |
During the period the Company's wholly owned subsidiary, Oxray Ltd, borrowed £nil (31 July 2007: £100,000) from the Company for working capital purposes. The loan is non-interest bearing, is repayable on demand and the outstanding balance at 31 July 2008 was £200,000 (31 July 2007: £100,000).
6) INTERIM FINANCIAL REPORT
A copy of this interim report will be distributed to shareholders and is also available on the Company's website at www.oxecoplc.com.