YGEN.L Regulatory News (YGEN)

ViaLogy PLC ("ViaLogy" or "the Company")

Interim results for the six months ended 30 September 2013

Chairman's statement for the six months ended 30 September 2013

The Interim Report covers the six-month period to 30 September 2013. The figures show a loss for the period of £1,130,356 which includes a non-cash loss of £239,627 for amortisation and depreciation. The amortisation charges relate to the value of ViaLogy's Intellectual Property and associated research and development which is amortised over a period of six years. The cash outflow from operations during the period was £983,156.

This six month period in the company's history has been focussed on consolidating ViaLogy's commercial arrangements with existing clients, exploring new business opportunities for QuantumRD and establishing a significant working relationship with one of the biggest and most important companies in the global oil and gas sector, CGG. Among our achievements have been:

· The signing of a Business and Technical Collaboration Agreement with CGG (NYSE: CGG, Euronext: CGG: PA, www.cgg.com) of France, one of the world's largest geosciences companies. It provides ViaLogy with global sales and services locations, access to CGG customers, assistance in scaling ViaLogy's QuantumRD technology to large geographical areas, and specialised high tech data processing to prepare seismic datasets for QuantumRD.

· A new contract with our flagship client Chevron (www.chevron.com) expanding ViaLogy's work in the US Delaware Basin. Our task was to precisely map subsurface reservoirs for horizontal drilling that were well below the resolution of 3D seismic. This contract has been successfully completed.

· Signing an important contract with a new client, a subsidiary of Singapore-based Gente Oil Global, Pte. Ltd., to apply QuantumRD seismic interpretation technology on Ecuadorian properties in the Oriente Basin. ViaLogy focussed on reservoir discovery, delineation, and development in Napo sandstone formations that have proven too complicated to understand through conventional interpretation. The contract was completed and results were delivered to Gente in September.

During the summer and autumn the Board has also spent a considerable time honing plans for the proposed radical restructuring of ViaLogy. The aim is to position the company so that it can achieve carefully planned technical and commercial expansion whilst maintaining long-term shareholder value.

Full details of the proposed restructuring can be found in the circular to shareholders dated 18 November 2013. A link to the circular can be found on the company website. A General Meeting has been convened for Wednesday, December 4 2013 to seek shareholder support for the plans. Following the General Meeting it is the intention of the ViaLogy Board to recapitalise ViaLogy which is likely to entail the issue of new equity.

This is an ambitious and exciting juncture in the company's history and I believe the time has come for the business to benefit from a younger pair of hands on the helm. I have therefore decided to step down as chairman and director of the company at the close of the meeting on the 4th of December. My fellow director, Peter Reynolds, has also decided to resign from the Board at this time to pursue his other business interests. We both take this opportunity to wish ViaLogy every success in the future. 

Terry Bond

Chairman

ViaLogy PLC

2 December 2013

Consolidated income statement for the six months ended 30 September 2013

Consolidated statement of comprehensive income for the six months ended 30 September 2013

Consolidated statement of changes in equity for the six months ended 30 September 2013

Consolidated statement of financial position at 30 September 2013

Consolidated statement of cash flows for six months ended 30 September 2013

Notes forming part of the unaudited consolidated accounts for the six months ended 30 September 2013

1 Accounting policies

Basis of preparation

The interim financial information has been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial information for the year ended 31 March 2014.

The interim financial information for the period 1 April 2013 to 30 September 2013 is unaudited. In the opinion of the Directors the interim financial information for the period presents fairly the financial position, results from operations and cash flows for the period in conformity with the generally accepted accounting principles consistently applied. The interim financial information incorporates comparative figures for the interim period 1 April 2012 to 30 September 2012 and the audited financial year to 31 March 2013.The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. The comparatives for the full year ended 31 March 2013 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified, but did include references to any matters to which the auditor drew attention by way of emphasis in respect of going concern, without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

Going concern

As noted in the circular send to shareholders on 18 November 2013 for the General Meeting on 4th December 2013, the Board are proposing to restructure the company. The net result of the restructuring will be that working capital requirements will be greatly reduced from 1 January 2014. Following the General Meeting, it is the intention of the newly constituted ViaLogy Board to recapitalise ViaLogy which is likely to entail the issue of new equity. Whilst the Directors are confident that additional funding can be raised to meet the Group's development and working capital needs, and the Group has been successful in the past in this regard, a significant uncertainty exists given the absence of committed funding at the date of approval of these financial statements.

The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.

2 Segmental analysis

The Group has two reportable segments:

· Head office - this segment is the head office of the Group.

· Operations - this segment is involved in sales and technology development in the USA.

The operating results of these segments are regularly reviewed by the Group's chief operating decision maker in order to make decisions about the allocation of resources and assess their performance.

All material non-current assets are owned by the USA subsidiary and are located in the USA.

3 Deferred Tax

Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 35%.

4 Loss per share

Basic

The calculation of loss per share is based on the loss for the period of £1,130,356 (2012 - loss £2,839,110, full year loss £4,664,186) and on 1,039,523,650, (2012 - 899,549,947, 2012 full year - 921,224,058) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

Diluted

Diluted loss per share dilutes the basic loss per share to take into account share options and warrants. The calculation includes the weighted average number of ordinary shares that would have been issued on the conversion of all the dilutive share options and warrants into ordinary shares. 33,890,242 options (2012 - 106,020,272 options, 2012 full year 125,535,913 options) have been excluded from this calculation as this would reduce the loss per share.

5 Share capital -unaudited

6 Post Reporting date events

There are no post reporting date events.

For further information:

ViaLogy PLC

Terry Bond, Chairman - UK & Europe +44 (0) 1235 834 734

Nominated Advisor to ViaLogy PLC (Cantor Fitzgerald Europe)

Mark Percy / Catherine Leftley - Corporate Finance +44 (0) 207 894 7000