Preliminary Results

RNS Number : 2650P

Avacta Group PLC

23 October 2012

 



Press Release

23 October 2012

Avacta Group plc

("Avacta" or the "Group")

Preliminary Results

Avacta Group plc (AIM:AVCT), a leading provider of proprietary analytical and diagnostic technology, consumables and reagents, to the drug development and healthcare sectors, today announces its audited preliminary results for the year ended 31 July 2012.

Highlights

·	Group revenue growth of 28% to £3.13 million (2011: £2.45 million)
·	Revenues from 21 Optim analytical unit despatches and its consumable cartridge (2011: 14 units) increased by 59% to £1.29 million (2011: £0.81 million)
·	Revenues from the Animal Health business grew strongly by 23% to £1.49 million (2011: £1.21 million)
·	Manufacturing scale up issues with AX.1 have been resolved and first units have been placed with selected veterinary practices post period end
·	AX.1 test menu expansion well underway
·	Affimer affinity reagent platform progressing well towards commercialisation
·	Reported loss before tax increased only marginally to £1.60 million (2011: loss £1.12 million)
·	Year-end cash at bank of £4.19 million (2011: £1.77 million)
·	Loss per share maintained at 0.04 pence (2011: 0.04 pence)

 
Commenting on the results, Alastair Smith, Chief Executive Officer, said: 

"Despite a challenging economic backdrop we have seen solid commercial progress in the year. I am also pleased to report that the major development programmes have also delivered: the re-engineering of Optim to reduce build cost and improve robustness has been completed, we have made excellent progress towards first products with the recently acquired Affimer affinity reagent platform, and AX.1 is now in the hands of vets and is being used in the clinical setting.

"It is clearly a major milestone for Avacta to have AX.1 units in vets' clinics as part of a planned field test prior to full commercialisation and I am delighted that we have reached this important point. This field test will last a few months and allow us to respond to any feedback that might be crucial to the take-up of the product. We have expanded the test development team as planned and we are working on several tests in parallel, so we anticipate being able to expand the menu over the coming year.

"Since the acquisition of the Affimer affinity reagent platform we have put an excellent team in place, set up world class facilities and become fully operational for both production and screening of Affimers. We are now manufacturing Affimer microarrays and working on internal validation which should lead on to external validation with some significant partners. I am also pleased to say that we have had positive feedback on the technology from customers and commercial partners alike and I am very excited about the potential value that this acquisition has added to the Group.

"Avacta is in a strong position and funded to deliver product development over the next couple of years that will support the Group's longer term value growth. In the short term the general economic situation remains challenging but I look forward to being able to report substantial progress over the coming financial year."

Enquiries:

Avacta Group plc
Alastair Smith, Chief Executive Officer	Tel:  [phone]
Tim Sykes, Chief Financial Officer	www.avacta.com
Broker and Nominated Adviser Panmure Gordon (UK) Limited	Tel: [phone]
Fred Walsh / Andrew Burnett / Grishma Patel Charles Leigh-Pemberton (Corporate broking)

Media Enquiries - Abchurch Communications
Sarah Hollins / Adam Michael / Harriet Rae	Tel: [phone]
[e-mail]	www.abchurch-group.com

The Group's Preliminary Results are available on its website www.avacta.com

Notes to Editors:

Avacta Group plc is a UK based healthcare technology, reagents and consumables company, providing innovative tools to help reduce the costs of drug development and to improve diagnostics.

Avacta's products address one of the most significant global challenges facing mankind today - the rapidly rising cost of healthcare for a growing and ageing population.

The cost of healthcare is driven by many factors. New drugs are expensive to develop, most don't reach the patient and those that do are often very costly to prescribe. Inadequate, incorrect or slow diagnosis causes delays that lead to longer or less effective courses of treatment resulting in lengthy or repeated hospitalisation.

Avacta is dedicated to developing and providing innovative and practical tools to help drug developers get their products to market quicker and more reliably, and to providing clinicians with rapid and powerful diagnostics to improve patient treatment, helping to reduce the cost of healthcare worldwide.

Avacta joined AIM in August 2006 and is based in Wetherby, England.

Chairman's and Chief Executive Officer's Report

Business Overview

The Group made solid progress during the year, reporting increased revenue of £3.13 million, up 28% against £2.45 million in the prior year.

The Avacta Analytical division, which is aimed at reducing the costs and risks associated with biopharmaceutical drug development, shipped and installed 21 Optim units which contributed to a 59% increase in revenue for Optim and its associated consumable cartridge to £1.29 million (2011: £0.81 million).

Within the Avacta Animal Health division, revenue from the Group's veterinary diagnostics service based business grew strongly by 23% to £1.49 million (2011: £1.21 million), principally through increased export business.  The Group has previously reported issues encountered in the manufacturing scale up of the plastic consumable cartridge for AX.1, the diagnostic device aimed at delivering rapid test results at the point-of-care in both the veterinary and human health sectors.  These issues had delayed the commercial launch of the product into the vet market and, accordingly, that device did not contribute to the Group's revenue during the reporting period.  After the period end, these issues have been resolved and AX.1 is now in the hands of vets on a final product testing process before full commercialisation.

Avacta Analytical

Avacta Analytical provides high-end analytical instrumentation, consumables and services to the biopharmaceutical sector.  During the period, 21 units of its flagship product, Optim, were shipped and the Group now has installed units across all major geographies.  Revenue from Optim and its consumable cartridge advanced substantially to £1.29 million (2011: £0.81 million).

Growth in the recurring consumables revenue from Optim is a key performance indicator.  This will be achieved through an increase in the installed base of units and an expansion of the range of applications of the technology in addition to high throughput formulation and stability.  Whilst still small in absolute terms, revenue from consumables increased by 127% against the prior year.

The Group sells Optim directly in the UK and through distributors in export markets.  During the year, it extended its already strong partnership with Pall Life Sciences into South East Asia and now has coverage in all key global territories.  The sales pipeline remains strong which supports the Directors confident view for the longer term prospects for Optim in its markets. Recently Pall Corporation acquired ForteBio, a California based supplier of high throughput automated biological assay instrumentation and associated consumables. ForteBio is going to be responsible for all analytical instrumentation sales for Pall Life Sciences, including Optim.  ForteBio has experienced sales and support teams in the USA and other geographies and an excellent track record in capital equipment sales. Avacta Analytical is already working with the ForteBio sales, applications and support teams to expedite this handover quickly and smoothly.

The programme to take production cost out of the Optim unit and the associated consumable is complete and should deliver margin improvement during the current financial year.

Revenue from non-core analytical contract services declined to £0.31 million (2011: £0.43 million).

Avacta Animal Health

Avacta Animal Health provides diagnostic products, reagents and services for the US$1.5 billion global veterinary diagnostics market. Its aim is to equip veterinary professionals with high quality animal health and well-being information, through point-of-care diagnostics, reagents and testing kits and through laboratory based testing services.  Its lead product, the AX.1 point-of-care immunoassay system, is aimed at providing the veterinarian with rapid serological blood test results in the clinic.  The Group has previously reported issues in the scale-up to manufacture that had delayed the commercial launch of the product but these issues have now been resolved and, since the end of the reporting period, the first units of AX.1 have been placed into a number of veterinary practices as part of the final product testing process before full commercialisation. This testing process, which is being carried out by the vets themselves in the clinical setting, is intended to capture any feedback that could be important in ensuring rapid adoption and the early success of the product. The testing process is planned to last for 3 months.

The initial range of tests that will be provided to run on AX.1 for canine, feline and equine healthcare relates to Avacta's world-leading allergy testing brand Sensitest® and its acute phase protein tests acquired in 2010 with Reactivlab, the Glasgow University Veterinary School spin-out.  Expansion of the AX.1 test menu is key to supporting the growth of recurring revenue and extensive clinical and commercial work over the past year has delivered a candidate panel of more than 20 further diagnostic tests across companion animal and equine healthcare applications.  Funds raised during January 2012 were allocated to expanding the assay development team and increasing the rate of development of the AX.1 test menu and this is well underway.

The Group has signed an exclusive agreement with IDEXX Laboratories ("IDEXX"), to supply reagents for high throughput laboratory testing for C-reactive protein in dogs for the early detection of acute inflammation or infection. This is one of the most common and clinically informative uses of acute phase proteins for dogs. Under the terms of the agreement, Avacta will exclusively supply its proprietary diagnostic reagents for use with high-throughput bioanalysers in IDEXX's reference laboratories. IDEXX receives global rights to use the diagnostic reagents to provide testing through its own companion animal diagnostic services.

The global market for these tests is expected to be substantial and to grow as they become more widely available to vets through IDEXX's testing services. The Group anticipates that the agreement will contribute to revenue growth in the current financial year, and that a second acute phase protein test kit for mammalian haptoglobin will be completed in the same time period.

Revenue from diagnostic testing services has grown strongly to £1.49 million (2011: £1.21 million), principally through increased export business.

Acquired technology

A significant element of the Group's future product development programme is focussed on the recently acquired Affimer affinity reagent¹ platform technology.

During January 2012 the Group acquired an affinity reagent platform through its strategic acquisition of Aptuscan Limited.  The Directors are pleased that the development of the technology toward the Group's first products is progressing well.  Avacta is focused on two principal commercial opportunities for the Affimer platform; those of protein microarrays for drug and biomarker discovery, and affinity reagents for life sciences research.

Drug and biomarker discovery tools is a very large market incorporating a wide range of biological assays and tools such as mass spectrometry and DNA and protein microarrays. A key factor that is driving this market is guidance from regulatory authorities that all drugs delivered to market from 2015 should have an associated "companion" diagnostic to indicate which patients will respond well to that particular drug.  Additionally, the tools used to discover and develop the drugs should ideally be the same ones that eventually provide the diagnostics so that there is consistency throughout the process. Providing a single protein analysis platform - "from discovery to diagnostics" - has benefits in cost and risk reduction for drug developers. Protein microarrays provide one such technology platform that could be used to discover new drugs and biomarkers, to provide assays to be used during drug development and clinical trials and then to practically deliver a test in a hospital or GP clinic.

A protein microarray is a matrix array of affinity reagent dots, each of a few microns in size, usually printed onto a glass slide. Each dot in the array is capable of binding a protein from a sample that is placed on the array and, when the sample is washed off, the array can be easily viewed to see which proteins have been captured from the sample. These proteins could then form the basis of a diagnostic or a drug development programme.  The vast majority of affinity reagents used currently in microarrays are antibodies which are limited in their availability (commercially available arrays are typically a few tens to a few hundreds of antibodies to different targets) and their functionality is often affected when they are attached to solid surfaces, such as glass slides, to make arrays. Affimer arrays do not appear to suffer from these problems and Avacta has libraries of millions of Affimers with which to produce much larger arrays.

Avacta has now set up the facilities and the team capable of delivering high throughput production and purification from the Affimer libraries that were acquired and also the facilities to print very large arrays. Over the coming months the first arrays that are now being produced will be validated internally as a precursor to external collaborations that will aim to independently validate the technology to support full commercialisation.

Avacta has received significant interest in its Affimers as reagents for research to replace antibodies in circumstances in which they are too expensive or unreliable and also to provide affinity reagents where antibodies simply do not exist. Avacta has now set up three separate methods of screening its huge Affimer libraries for binders to targets of interest for potential commercial partners and the first screens (which take only a few weeks) are underway.

Financial Overview

Revenue grew by 28% to £3.13 million (2011: £2.45 million).  This included £1.64 million from Avacta Analytical (2011: £1.24 million) assisted by the contribution of the 21 Optim installations and associated consumables and £1.49 million (2011: £1.21 million) from Avacta Animal Health.  The incremental revenue contributed positively toward the necessary expansion of the operating capability of the Group as it prepares for higher rates of growth and, along with the impact of certain legal and professional costs, the adjusted operating loss increased to £1.55 million (2011: £0.92 million).  The reported operating loss increased to £1.64 million (2011: £1.13 million) with the net charge from the release of a provision for contingent consideration, amortisation of intangible assets and share based payment charges reducing to £0.09 million (2011: £0.20 million).

The Group recognised £0.49 million of R&D tax credits during the year which reduced the loss retained to £1.11 million (2011: £0.59 million) leaving loss per share maintained at 0.04 pence (2011: 0.04 pence).

Goodwill of £1.54 million arose from the strategic acquisition of Aptuscan Limited.  Development expenditure capitalised during the year increased to £1.36 million (2011: £0.88 million) through the accelerated development of the AX.1 test menu and the Affimer affinity reagent platform.  These two factors resulted in net intangible assets increasing to £12.10 million (2011: £9.30 million) after amortisation of £0.10 million (2011: £0.13 million).

The Group reported cash balances of £4.19 million (2011: £1.77 million) following its fund raise during January 2012 when it raised £5.13 million at a price of 0.5 pence per share.

Outlook

The Board is pleased with most aspects of the Group's performance during the last financial year, which shows overall solid progress but recognises that in some areas performance could have been better, particularly the continued delay to the launch of AX.1.

Avacta Analytical has now established a global network of distributors, has re-engineered Optim to be smaller and more robust from a shipping and servicing point of view, has taken considerable cost out of the product and is now working on developing new applications for the product to broaden its market appeal. In the current financial year, sales and support in the US will be transferred to ForteBio, which is now part of Pall Life Sciences. The Board believes that this transition may cause some slowing of Optim sales but the benefits in the longer term are very clear and the pipeline remains strong. 

Avacta Animal Health has delivered strong growth in its core services business and the previously reported issues in scale up to manufacture that have delayed the launch of AX.1 are resolved.  The Board is delighted that AX.1 is now being used by vets in the clinical setting as part of planned field test prior to full commercialisation.

The development of the Group's Affimer affinity reagent platform is very encouraging.  Early stage market validation and operational capability have been established and the Group looks forward to further progress in the short term.

The Group has clear visibility on its short and long term commercial, technical and financial objectives and has a solid platform from which to achieve them.  The Board anticipates substantial progress across its operations in the current financial year.

Gwyn Humphreys Chairman 23 October 2012

Alastair Smith Chief Executive Officer 23 October 2012

¹ Affinity reagents are molecules (usually proteins) that have an affinity for, or are able to bind to, other molecules or "targets" of interest.  Such affinity reagents are very widely used to bind molecules for applications in diagnostics (e.g. binding a protein present in the blood that may be indicative of disease), as general life sciences reagents in tests and assays, as a way of purifying a target out of a complex mixture or as therapeutic agents.

Antibodies currently dominate the biotechnology, molecular diagnostics and therapeutic markets for affinity reagents but antibodies have several disadvantages relating to their availability, cost of manufacture, stability and cross reactivity.  Affimers have none of these disadvantages and, therefore, have the potential to replace antibodies in a wide range of applications in markets worth over $300bn in total.

Consolidated Income Statement

for the year ended 31 July 2012

		2012	2011
	Note	£000	£000
Revenue		3,130	2,445
Cost of goods sold		(1,619)	(1,254)
Gross profit		1,511	1,191
Administrative costs		(3,153)	(2,316)
Operating loss before non-recurring items, amortisation and share-based payment charges		(1,550)	(923)
Release of provision for contingent consideration		150	-
Amortisation of customer related intangibles and development costs		(97)	(132)
Share-based payment charges		(145)	(70)
Operating loss		(1,642)	(1,125)
Finance income		39	4
Finance expense		-	(1)
Loss before taxation		(1,603)	(1,122)
Taxation		497	531
Amount attributable to equity holders of the Company		(1,106)	(591)
Loss per ordinary share :
-  Basic and diluted	4	(0.04p)	(0.04p)

Consolidated Balance Sheet

as at 31 July 2012

		2012	2011
		£000	£000
Non-current assets
Intangible assets		12,095	9,298
Property, plant & equipment		636	319
		12,731	9,617
Current assets
Inventories		462	337
Trade and other receivables		619	607
Income taxes		485	-
Cash and cash equivalents		4,191	1,774
		5,757	2,718
Total assets		18,488	12,335
Current liabilities
Trade and other payables		(1,432)	(633)
Finance leases		-	(4)
Deferred consideration		(100)	(50)
		(1,532)	(687)
Non-current liabilities
Deferred consideration		-	(200)
Deferred tax liabilities		-	(12)
		-	(212)
Total liabilities		(1,532)	(899)
Net assets		16,956	11,436
Equity attributable to equity holders of the Company
Called up share capital		3,234	1,744
Share premium account		22,989	16,408
Capital reserve		2,669	2,669
Other reserve		(1,729)	(1,729)
Reserve for own shares		(1,590)	-
Retained earnings		(8,617)	(7,656)
Total equity		16,956	11,436

Consolidated Statement of Changes in Equity

for the year ended 31 July 2012

		Share capital			Share premium	Other reserve		Capital reserve		Reserve for own shares			Retained earnings
		£000			£000	£000		£000			£000		£000
At 1 August 2010		1,512			14,653	(1,729)		2,669			-		(7,135)
Transactions with owners of the company recognised directly in equity
Shares issued for cash	230			1,737			-		-	-		-
Shares issued during the year as consideration for business combinations	2			18			-		-	-		-
Share based payment charges	-			-			-		-	-		70
Total comprehensive income for the period
Result for the period	-			-			-		-	-		(591)
At 31 July 2011	1,744			16,408			(1,729)		2,669	-		(7,656)
Transactions with owners of the company recognised directly in equity
Shares issued for cash	1,260			5,221			-		-	-		-
Purchase of own shares	-			-			-		-	(1,590)		-
Shares issued during the year as consideration for business combinations	230			1,360			-		-	-		-
Share based payment charges	-			-			-		-	-		145
Total comprehensive income for the period
Result for the period	-			-			-		-	-		(1,106)
At 31 July 2012	3,234			22,989			(1,729)		2,669	(1,590)		(8,617)

Consolidated Statement of Cash Flows for the year ended 31 July 2012

		2012	2011
		£000	£000
Operating activities
Loss for the year		(1,106)	(591)
Amortisation and impairment losses		97	132
Depreciation		141	114
Profit on sale of plant and equipment		-	(40)
Share based payment charges to employees		145	70
Net finance (income)/expense		(39)	(3)
Income tax credit		(497)	(531)
Operating cash outflow before changes in working capital		(1,259)	(849)
Movement in inventories		(125)	(163)
Movement in trade and other receivables		-	207
Movement in trade and other payables		634	(307)
Operating cash outflow from operations		(750)	(1,112)
Finance income received		39	4
Finance expense paid		-	(1)
Income tax received		-	517
Net cash flow from operating activities		(711)	(592)
Investing activities
Purchase of plant and equipment		(432)	(193)
Proceeds from sale of plant and equipment		-	50
Development expenditure capitalised		(1,355)	(879)
Acquisition of subsidiaries		28	-
Net cash flow from investing activities		(1,759)	(1,022)
Financing activities
Proceeds from issue of shares		4,891	1,967
Capital repayment on finance leases		(4)	(12)
Net cash flow from financing activities		4,887	1,955
Net increase in cash and cash equivalents		2,417	341
Cash and cash equivalents at the beginning of the year		1,774	1,433
Cash and cash equivalents at the end of the year		4,191	1,774

Notes

1.   These preliminary results have been prepared on the basis of the accounting policies which are to be set out in Avacta Group plc's annual report and financial statements for the year ended 31 July 2012.

The consolidated financial statements of the Group for the year ended 31 July 2012 were prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted for use in the EU ("adopted IFRSs") and applicable law.

The financial information set out above does not constitute the company's statutory financial statements for the years ended 31 July 2012 or 2011 but is derived from those financial statements.  Statutory financial statements for 2011 have been delivered to the Registrar of Companies and distributed to shareholders, and those for 2012 will be respectively delivered and distributed on or before 31 December 2012.  The auditors have reported on those financial statements and their reports were:

(i) unqualified;

(ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and

(iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006 in respect of the financial statements for 2011 or 2012.

2.   Basis of preparation

The Group financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS).

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.  The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The Group's activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's and Chief Executive Officer's Report.  The financial position of the Group, its financial performance and its cash flows and liquidity position are described there also and within the financial statements presented.

The financial statements have been prepared on a going concern basis. The current economic conditions create uncertainty particularly over the level of demand for the Group's products and over the availability of finance which the directors are mindful of.  In addition, the Group has incurred significant losses over the last few years of which a substantial element is in cash.

The Financial Reporting Council issued "Going Concern and Liquidity Risk: Guidance for Directors of UK Companies" in 2009, and the Directors have considered this when preparing these financial statements.  This has been prepared on a going concern basis, notwithstanding the loss for the period ended 31 July 2012.  The Directors have taken steps to ensure that they believe the going concern basis of preparation remains appropriate, and that the carrying value of intangibles remains supported by future cash flows.  The key conclusions are summarised below:

-       The Group is at a critical point in its development as it seeks to ramp up sales of its Optim product and launch the AX.1 product.  These are expected to generate significant revenue for the Group over the coming years, aiding both profitability and cash flows.

-       The Group has taken a significant amount of annualised costs out of the business and will continue to take all appropriate steps to manage its cost base in light of any deviations from the forecast sales levels.

-       The Directors have prepared sensitised cash flow forecasts extending to the end of the financial year ended 31 July 2014.  These show that the Group has sufficient funds available to meet its obligations as they fall due over that period.  

-       The Group's year-to-date financial performance is materially in line with this budget cumulatively.

-       The Directors are not aware of any evidence to suggest that the budgeted improvement in the level of performance over the short term future will not be realised although the Directors recognise that it is possible that a worsening of performance could become evident, at which point they would act accordingly to mitigate the impact of such a worsening.  The action may include further cost reduction strategies, curtailed capital expenditure programs or equity issues.

-       The Group does not have external borrowings or any covenants based on financial performance.

-       The Directors have considered the position of the individual trading companies in the group to ensure that these companies are also in a position to continue to meet their obligations as they fall due. 

-       The markets in which the business operates are not considered to be at significant risk due to the ongoing global economic recession.  

-       There are not believed to be any contingent liabilities which could result in a significant impact on the business if they were to crystallise.

Following this assessment, the Directors have reasonable expectation that the Group has adequate resources to continue for the foreseeable future and that carrying values of intangible assets are supported.  Thus, they continue to adopt the going concern basis of accounting in preparing these financial statements.

 3.   Segmental reporting

Operating segment analysis 2012

								Analytical			Animal  Health					Total
								£000			£000					£000
Revenue								1,642			1,488					3,130
Cost of goods sold								(1,201)			(418)					(1,619)
Gross profit								441			1,070					1,511
Depreciation								(92)			(21)					(113)
Other operating expenses								(1,456)			(1,649)					(3,105)
Operating loss before non-recurring expenses, amortisation and share-based payment charges								(1,107)			(600)					(1,707)
Share-based payment charges								(19)			(15)					(34)
Segment operating loss								(1,126)			(615)					(1,741)
Corporate and other unallocated items																(1,159)
IFRS translation related items
-     Capitalisation of development costs																1,355
-     Amortisation of customer related intangible assets																(97)
Operating loss																(1,642)
Finance income																39
Loss before taxation																(1,603)
Taxation																497
Amount attributable to equity holders of the Company															(1,106)
Segment intangible assets								6,500			2,424					8,924
Segment tangible assets								1,297			482					1,779
Segment assets								7,797			2,906					10,703
Corporate and other unallocated items																4,644
IFRS translation related items
-     Development costs																3,292
-     Customer related intangible assets																(151)
																18,488
Segment liabilities								(823)			(420)					(1,243)
Corporate and other unallocated items																(289)
																(1,532)

Operating segment analysis 2011

			Analytical		Animal  Health		Human  Health				Total
			£000		£000		£000				£000
Revenue			1,236		1,209		-				2,445
Cost of goods sold			(736)		(518)		-				(1,254)
Gross profit			500		691		-				1,191
Depreciation			(99)		(8)		-				(107)
Other operating expenses			(977)		(1,135)		31				(2,081)
Operating loss before non-recurring expenses, amortisation and share-based payment charges			(576)		(452)		31				(997)
Share-based payment charges			(21)		(1)		-				(22)
Segment operating loss			(597)		(453)		31				(1,019)
Corporate and other unallocated items											(855)
IFRS translation related items
-      Capitalisation of development costs											879
-      Amortisation of development costs and customer related intangible assets											(130)
Operating loss											(1,125)
Finance income											4
Finance expenses											(1)
Loss before taxation											(1,122)
Taxation											531
Amount attributable to equity holders of the Company										(591)
Segment intangible assets			4,962		2,424		-				7,386
Segment tangible assets			1,080		356		5				1,441
Segment assets			6,042		2,780		5				8,827
Corporate and other unallocated items											1,629
IFRS translation related items
-     Development costs											1,989
-     Customer related intangible assets											(110)
											12,335
Segment liabilities			(319)		(174)		(4)				(497)
Corporate and other unallocated items											(390)
IFRS translation related items
-     Deferred tax on customer related intangible assets											(12)
											(899)

4.   Basic and diluted loss per ordinary share

The calculation of earnings per ordinary share is based on the profit or loss for the period and the weighted average number of equity voting shares in issue.  The earnings per ordinary share is the same as the diluted earnings per ordinary share because the earnings per share is negative.

	2012	2011
Loss (£000)	(1,106)	(591)
Weighted average number of shares (number '000)	2,499,616	1,548,303
Basic and diluted loss per ordinary share (pence)	(0.04)p	(0.04)p

- Ends -

 

END

 

 

FR DLLFLLBFXFBB