YGEN.L Regulatory News (YGEN)

21 Dec 2005 07:00

Original Investments PLC21 December 2005 ORIGINAL INVESTMENTS PLC ("Original Investments") Interim results for the six months ended 30 September 2005 Highlights o Shareholders approve broader investment strategyo Company name changed to Original Investments PLCo Both investments held by Original Investments are moving towards commercial successo Participation in ViaLogy's successful $1.6 million financing round Chairman's Statement Since I last wrote to investors the company held its annual general meeting onSeptember 28th 2005 at which the board proposed two important and interconnectedchanges. The first recommendation, which was approved, gave the companyauthority to consider a much wider range of investments rather than berestricted to providing finance for early-stage biotechnology companies. Thesecond resolution, which also met with the approval of shareholders, changed thename of the company from BioProjects International PLC to Original InvestmentsPLC to reflect better the new investment policy. The sale of our holding in Acolyte Biomedica earlier this year has resulted inOriginal Investments having strong cash balance and we are now activelyinvestigating a number of financial opportunities. One of these is toconsolidate our position in our two current investments because, during the sixmonths covered by this interim statement, it is very pleasing to note that theyhave both made considerable progress. ViaLogy in particular has moved from being an exciting but speculativetechnology research and development company to a business that is in detailedcommercial negotiations with a number of international organisations. Havingvalidated its ability to produce valuable additional information frommicroarrays, enabling users to obtain data hitherto hidden by background'noise', the strengthened management and technical team has now turned itsattention to more established and therefore more commercially attractiveindustries. Detailed discussions are on-going with leading companies in thefields of mass spectrometry, sensor communication, geo-seismology, and nationalsecurity. We hope and expect that these will lead to the ViaLogy technologybeing incorporated in products that will have commercial significance. InSeptember we had no hesitation in taking the decision to join our fellowinvestor Aeris Holdings of Switzerland, in a $1.6 million additional financingfor ViaLogy. In common with Aeris we also agreed to convert all our loans toViaLogy into equity in the company in November this year. We are hopeful that,in the coming year, ViaLogy will sign a number of valuable commercial contracts. Acrobot, which was our very first investment back in 2000, has also taken itsfirst truly commercial steps by announcing Acrobot Navigation, its innovativemedical device, enabling orthopaedic surgeons to plan and perform hipresurfacing surgery with accuracy. The system has been granted a CE-mark byBSI's Certification Panel. The device has been developed in collaboration with Corin Group PLC, and theCE-mark is the manufacturer's guarantee that the device meets all the requiredEuropean manufacturing and safety standards. In addition, Acrobot is marketingits own visualisation software, The Acrobot Planner, which enables orthopaedicsurgeons to produce three-dimensional bone surface models from ComputedTomography scans for pre-operative surgical planning. In summary, I believe Original Investments can look forward to 2006 withconsiderable confidence. Our two existing investments are in good shape and setto realise their commercial promise. You can be assured that improvingshareholder value will remain our top priority. Jim SlaterChairman 16 December 2005 Current Portfolio Vialogy Corp (ViaLogy) ViaLogy has perfected a technology which has its origins in NASA's spaceprogramme. In Caltech/NASA's jet propulsion laboratories scientists developed arevolutionary process, based on quantum mathematics, for identifying andunderstanding weak signals transmitted from spacecraft. Hitherto they had beensmothered by background 'noise'. The principal Caltech scientist involved in the discovery of this breakthroughtechnology is now technical director of ViaLogy and the company has the rightsto adapt the process commercially. Initially, ViaLogy concentrated on the youngand volatile microarray industry to demonstrate the far-reaching potential ofthe process. Success in this area has been validated by major companies. Now the companyplans to adapt the technology for use in more profitable fields such as massspectrometry, geo-seismology and national security. Technical development andcommercial discussions with leading organisations in these internationalindustries are well advanced. ViaLogy has considerably strengthened its management and technical team. MichaelKelly, who has extensive experience of company development, has taken over asCEO and Terry Bond, managing director of Original Investments, has beenappointed as non-executive chairman of ViaLogy. During the period under review Original Investments made additional convertibleloans to ViaLogy of $345,000 (£195,711). At 30 September 2005 OriginalInvestments had invested a total of £3,335,056 and in addition had made loans toVialogy totalling $1,595,000 (£904,810). In September, 2005, Original Investments participated in the $1.6 million SeriesB funding round with a further investment of $405,000 (£230,835). The privateplacement funding was completed in November 2005. As part of the Series Bfinancing all loans to ViaLogy from all sources were converted to equity.Original Investments now owns 41.43% of ViaLogy. The Acrobot Company Limited (Acrobot) Acrobot is a spinout company from Imperial College, London. At its laboratoriesin London's Leathermarket the company develops precision surgical systems forminimally-invasive, bone conserving orthopaedic surgery. Its founders andprincipal directors are Professor Justin Cobb, one of Britain's leadingorthopaedic surgeons, and Professor Brian Davies, Professor of Medical Roboticsat Imperial College. They lead a small and dedicated team of scientists andtheir work over the last five years, since Original Investments demonstrated itsfaith by becoming Acrobot's first 'outside' investor, is beginning to make areal impact in the orthopaedic world. By the end of 2006 three Acrobot products will be in use in operating theatres:- • The Acrobot(R) Navigation is a medical device which gives the surgeon theability to implant hip resurfacing prostheses in an accurate and minimallyinvasive procedure. It differs from competitive products by using mechanicaltracking rather than optical or electromagnetic technologies, giving it a higheraccuracy at a lower cost. • The Acrobot(R) Planner gives the surgeon the ability to visualise a patient'sthree dimensional bone surface models built from CT scans. The visualisation isinteractive and the user can select and position implant models onto the bones,evaluate the resulting range of motion, and produce reports. • The Acrobot(R) Hands-On Robotic System, which has already been successfullyproven in clinic for unicompartmental knee arthroplasty is planned forcommercial launch next year. As at 30 September 2005 the 25.3% holding Original Investments has in Acrobotwas carried at £200,000 in the company's financial statements. Independent Review Report to Original Investments PLC(previously Bioprojects International PLC)Introduction We have been instructed by the company to review the financial information forthe six months ended 30 September 2005 set out on pages 8 to 12 of the interimreport. We have read the other information contained in the interim report andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. Our report has been prepared in accordance with the terms of our engagement toassist the company in meeting the requirements of the rules of the London StockExchange for companies trading securities on the Alternative Investments Marketand for no other purpose. No person is entitled to rely on this report unlesssuch a person is a person entitled to rely upon this report by virtue of and forthe purpose of our terms of engagement or has been expressly authorised to do soby our prior written consent. Save as above, we do not accept responsibility forthis report to any other person or for any other purpose and we hereby expresslydisclaim any and all such liability. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AlternativeInvestment Market which require that the accounting policies and presentationapplied to the interim figures should be consistent with those applied inpreparing the preceding annual accounts except where any changes, and thereasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and basedthereon, assessing whether the accounting policies and presentation have beenconsistently applied unless otherwise disclosed. A review excludes auditprocedures such as tests of controls and verification of assets, liabilities andtransactions. It is substantially less in scope than an audit performed inaccordance with United Kingdom Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly we do not express an audit opinionon the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 September 2005. BDO Stoy Hayward LLPChartered AccountantsLondon16 December 2005 ORIGINAL INVESTMENTS PLC Unaudited Profit and Loss Account for the six months ended 30 September 2005 Unaudited Unaudited 6 months to 6 months to Note 30-Sep-05 30-Sep-04 Turnover 3,404 9,852Administration expenses (118,095) (125,077) --------- --------- Operating loss (114,691) (115,225) Provision for diminution invalue of investments - (1,804,628) --------- ---------Profit/(Loss) on ordinaryactivities before interestand other income (114,691) (1,919,853) Other interest receivableand similar income 127,457 28,623 --------- --------- Profit/(Loss) on ordinaryactivities before taxation 12,766 (1,891,230) Taxation on profit/(loss) on ordinary - -activities --------- ---------Retained profit/(loss) onordinary activities aftertaxation for theperiod/year 12,766 (1,891,230) ========= ========= Profit/(Loss) per ordinary share Basic 2 0.004p (0.69p) Diluted 2 0.004p (0.69p) ORIGINAL INVESTMENTS PLCUnaudited Balance Sheet as at 30 September 2005 Note Unaudited Unaudited Unaudited Unaudited 30-Sep 30-Sep 30-Sep 30-Sep 2005 2005 2004 2004 £ £ £ £Fixed assets Tangible assets 3,428 3,916Fixed assetinvestments 3 3,535,056 3,480,056 --------- --------- 3,538,484 3,483,972 Current assetsDebtors andprepayments 1,051,772 497,155Cash at bankand in hand 3,115,232 1,003,686 --------- --------- 4,167,004 1,500,841 Creditors :amountsfalling duewithin one year 36,492 43,119 --------- --------- Net currentassets 4,130,512 1,457,722 --------- ---------Total assetsless currentliabilities 7,668,996 4,941,694 ========= ========= Capital and reservesCalled upshare capital 3,112,222 2,882,222Share premiumaccount 7,639,013 7,601,513Share schemereserve - 87,500Warrantsreserve - 66,240Profit andloss account (3,082,239) (5,695,781) --------- ---------Equityshareholders'funds 4 7,668,996 4,941,694 ========= ========= ORIGINAL INVESTMENTS PLCUnaudited Cash Flow Statement for the six months ended 30September 2005 Unaudited Unaudited Unaudited Unaudited Note 30-Sep 30-Sep 30-Sep 30-Sep 2005 2005 2004 2004 £ £ £ £ --------- --------- --------- --------- Net cashoutflow fromoperatingactivities 5 (179,572) (462,174) Returns on investments andservicing of finance Interest 127,457 28,623 received Capital expenditure and financial investment Increase in Loans to investee (239,563) company Payments to acquire tangible (54) (2,171) fixed assets --------- --------- (239,617) (2,171) Management of liquid resources Cash (outflow)/inflow from (increase)/decrease in liquid resources 480 (3,829) --------- --------- Cash outflowbeforefinancing (291,252) (439,551) Financing Cash inflow from issue 230,000 1,010,000 of shares Issue costs - (18,695) 230,000 991,305 --------- --------- Increase/(decrease) in cash (61,252) 551,754 ========= ========= ORIGINAL INVESTMENTS PLC NOTES TO THE INTERIM REPORT 1 Basis of preparation These unaudited interim accounts, which were approved by the Board on the 16 December 2005, do not constitute the company's statutory accounts. A copy of the statutory accounts for the year ended 31 March 2005 has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under section 237(2)-(3) of the Companies Act 1985. 2 Profit/(Loss) per ordinary share Profit/(Loss) per share is calculated as follows: Six months to 30 Sep 05 Six months to 30 Sep 04 Basic Diluted Basic Diluted £ £ £ £ Profit/(Loss) 12,766 12,766 (1,891,230) (1,891,230) attributable to --------- --------- --------- --------- shareholders Number Number Number Number Weighted average of 307,378,387 310,628,387 274,478,446 274,478,446 ordinary shares in issue --------- --------- --------- --------- Profit/(Loss) per 0.004p 0.004p (0.69p) (0.69p) ordinary share ========== ========== ========== ========== 3 Fixed asset investment Total - Unlisted Investments £ Cost At 1 April 2005 4,581,404 Disposals (641,848) ---------- At 30 September 2005 3,939,556 ---------- Provisions At 1 April 2005 1,046,348 Disposals (641,848) ---------- At 30 September 2005 404,500 ---------- Net book value ---------- At 30 September 2005 3,535,056 ========== At 31 March 2005 3,535,056 ========== 4 Reconciliation of movement in shareholders funds Unaudited Unaudited 30-Sep 30-Sep 2005 2004 £ £ Profit/(Loss) for the 12,766 (1,891,230) period New share capital 230,000 232,222 subscribed Net proceeds of issue of shares and - 759,083 exercise of warrants ---------- ---------- Net additions to 242,766 (899,925) shareholders' funds Opening shareholders' 7,426,230 5,841,619 funds ---------- ---------- Closing shareholders' 7,668,996 4,941,694 funds ========== ========== 5 Reconciliation of operating loss to net cash outflow from operating activities 30-Sep-05 30-Sep-04 £ £ Operating loss (114,691) (115,225) Depreciation of tangible 435 435 fixed assets Increase in (63,144) (326,591) debtors Decrease in (1,692) (11,395) creditors Foreign exchange (480) (9,398) movements ---------- ---------- Net cash outflow from (179,572) (462,174) operating activities ========== ========== 6 Analysis of net funds At 1/4/05 Foreign Cash Flow At 30/9/05 Exchange Movements Cash at bank and in hand 3,169,914 0 (60,827) 3,109,087 Liquid resources 6,570 55 (480) 6,145 --------- --------- -------- -------- 3,176,484 55 (61,307) 3,115,232 ========= ========= ======== ======== Notes to the Interim Accounts 1. Copies of the published interim accounts of the Company will be sent to allshareholders and are available during normal business hours from the offices ofSeymour Pierce Limited at Bucklersbury House, 3 Queen Victoria Street, LondonEC4N 8EL This information is provided by RNS The company news service from the London Stock Exchange