Interim Results
Cambridge Antibody Tech Group PLC
22 May 2006
06/CAT/06
FOR IMMEDIATE RELEASE
07.00 BST, 02.00 EST Monday 22 May 2006
For further information contact:
Cambridge Antibody Technology Hogarth Partnership (Europe)
Tel: +44 (0) 1223 471 471 Tel: +44 (0) 20 7357 9477
Peter Chambre, Chief Executive Officer Chris Matthews
John Aston, Chief Financial Officer Melanie Toyne-Sewell
Rowena Gardner, Director of Corporate Andrew Jaques
Communications
BMC Communications/The Trout Group (USA)
Tel: 001 212 477 9007
Brad Miles, ext 17 (media)
Brandon Lewis, ext 15 (investors)
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC ANNOUNCES INTERIM RESULTS FOR THE SIX
MONTHS ENDED 31 MARCH 2006
Cambridge, UK - Cambridge Antibody Technology Group plc (LSE: CAT; NASDAQ: CATG)
today announces financial results for the six months ended 31 March 2006 and a
business update. This follows AstraZeneca UK Limited's announcement on 15 May
2006 of its firm intention to make a recommended £702 million cash offer for
CAT.
Product Development Pipeline
HUMIRA(R) (adalimumab) is a fully human anti-TNF alpha monoclonal antibody,
isolated and optimised by CAT in collaboration with Abbott and now approved for
marketing as a treatment for rheumatoid arthritis (RA), early RA and psoriatic
arthritis. In January 2006, Abbott announced full year 2005 sales of HUMIRA of
US$1.4 billion, making it the first product originating from the UK
biotechnology industry to achieve blockbuster status (sales of over US$1
billion). In April 2006, Abbott announced first quarter sales of HUMIRA of
US$392 million and repeated its full year forecast of worldwide sales in 2006 of
more than US$1.9 billion. CAT receives royalty payments based on HUMIRA sales at
the rate of 2.688%.
In October 2005, Abbott submitted a regulatory application for HUMIRA as a
potential treatment for ankylosing spondylitis (AS) and, in January 2006, stated
that it anticipates approval in the second half of 2006. In April 2006, Abbott
reported that European regulators had granted a positive opinion recommending
approval and that the European Commission is expected to issue a decision
granting the marketing authorisation for HUMIRA as a treatment for AS within 60
days.
In December 2005, Abbott submitted a new drug application for HUMIRA to treat RA
in Japan. In April 2006, Abbott commented that it expects approval in the first
half of 2007.
Abbott continues to develop HUMIRA as a potential treatment for a number of
additional indications: Crohns disease, psoriasis, ulcerative colitis and
juvenile RA. In April 2006, Abbott commented that it would be presenting the
results from the Phase III clinical maintenance trial for HUMIRA in Crohns
disease at Digestive Disease Week (20-25 May 2006), and that it expects to file
a supplementary BLA submission (SBLA) during 2006. Abbott also commented that
Phase III trials for psoriasis are progressing well and that it expects to
submit in 2007 for this indication. In colitis, Abbott expects to commence Phase
II/III clinical trials during 2006.
CAT Products
CAT-354 is a fully human anti-IL-13 monoclonal antibody being developed by CAT,
initially as a treatment for severe asthma. Following the completion in 2005 of
a Phase I clinical trial, CAT has received approval from the Medicines and
Healthcare products Regulatory Agency (MHRA) to commence a repeat-dose safety
study of CAT-354 in patients with mild/moderate asthma. The trial, which will
take place in the UK, is now expected to start in the third quarter of calendar
year 2006 and will study safety, tolerability and pharmacokinetics. The delay
has been caused by amendments to the protocol, required as a result of evolving
interpretation of the new Clinical Trial Directive. Following the announcement
by AstraZeneca UK Limited of its firm intention to make a recommended offer for
CAT, partnering discussions regarding CAT-354 have been suspended.
The development of CAT-3888 and CAT-8015, immunotoxins that are potential
treatments for a number of B-cell malignancies, continues as planned. CAT-3888
is currently in a Phase II trial for the treatment of hairy cell leukaemia and
two Phase I trials - one in patients with paediatric refractory
CD22-positive leukaemias and lymphomas and one in patients with chronic
lymphocytic leukaemia and non-Hodgkins lymphoma. Data are expected to be
available from all three trials of CAT-3888 by the end of 2006.
GC-1008 is a pan-specific fully human anti-TGF beta monoclonal antibody being
developed by CAT and Genzyme. In the Phase I clinical trial of GC-1008 in
idiopathic pulmonary fibrosis (IPF), patient recruitment is ongoing. The
objectives of the trial are to evaluate the safety, tolerability and
pharmacokinetics of single intravenous infusions of GC-1008 in patients with
IPF. Preliminary results of this trial are expected to be available in 2007.
An IND has been granted for GC-1008 in oncology. The Phase I trial is expected
to commence in patients with renal cell carcinoma or malignant melanoma at the
end of the second quarter of calendar year 2006. The study, which will be a dose
escalation study, will take place at four centres in the US. Data are expected
to be available in 2008.
CAM-3001 is a fully human anti-GMCSF receptor antibody, being developed by CAT
and Zenyth as a potential treatment for RA. It is currently in pre-clinical
development and the companies expect to file a Clinical Trial Application (CTA)
for a Phase I clinical trial in the first half of calendar year 2007.
The strategic alliance with AstraZeneca has continued its excellent progress.
Licensed Products
ABT-874 is a fully human anti-IL-12 monoclonal antibody, isolated and optimised
by CAT in collaboration with Abbott and licensed to Abbott. Abbott continues to
develop ABT-874 as a potential treatment for autoimmune diseases and, in January
2006, Abbott stated that it was encouraged by the early data for the class of
molecule in both psoriasis and Crohns disease. Also in January 2006, Abbott
stated that it anticipates publishing data from a Phase II study in multiple
sclerosis later in the year.
LymphoStat-B(TM) (belimumab) is a fully human anti-BLyS monoclonal antibody,
licensed by CAT to Human Genome Sciences, Inc (HGSI). HGSI is developing
LymphoStat-B as a potential treatment for systemic lupus erythematosus (SLE),
for which HGSI has a Fast Track designation from the US Food and Drug
Administration (FDA), and RA. In January 2006, HGSI stated that, with its
collaborator GlaxoSmithKline, it expects to initiate Phase III development of
LymphoStat-B in SLE in 2006.
HGS-ETR1 (mapatumumab) is a fully human anti-TRAIL Receptor-1 monoclonal
antibody licensed by CAT to HGSI. HGSI is developing HGS-ETR1 as a potential
treatment for multiple cancer indications. In January 2006, HGSI reported that
it plans to initiate Phase II development of HGS-ETR1 in combination with
chemotherapy in hematopoietic cancers.
HGS-ETR2 is a fully human anti-TRAIL Receptor-2 monoclonal antibody licensed by
CAT to HGSI. In January 2006, HGSI stated that the results of recently completed
Phase I clinical trials warrant additional Phase II trials. It also stated that
it plans to reach go/no go decisions in 2006 regarding Phase II development of
HGS-ETR2 as a single agent and/or in combination with chemotherapy.
ABthrax(TM) is a fully human monoclonal antibody licensed by CAT to HGSI.
ABthrax was isolated and developed by HGSI from antibody libraries licensed from
CAT and HGSI is developing it as a potential treatment for anthrax disease. In
January 2006, HGSI stated that it is working to achieve an order from the US
Government to supply ABthrax for the US Strategic National Stockpile.
Financial Reporting
A review of the financial results for the six months ended 31 March 2006 is set
out below. For financial periods commencing on or after 1 October 2005, CAT is
producing its financial results in accordance with the recognition and
measurement principles of International Financial Reporting Standards (IFRS) as
endorsed by the European Union and, accordingly, has restated the comparative
figures for the six months ended 31 March 2005, previously produced in
accordance with UK GAAP. The comparative figures in brackets are the restated
figures for the corresponding period in the prior financial year (see note 2 to
the financial information). Results for the year ended 30 September 2005 have
also been prepared in accordance with IFRS, and are included within this
statement. These are as previously presented in the 2005 Annual Report, except
for a subsequent amendment to revenue and direct costs (no impact on cash or
operating loss) as detailed in note 3.
Financial Results
CAT made a profit after taxation for the six months ended 31 March 2006 of £4.6
million (2005: loss of £16.5 million). Net cash used by operations was £13.0
million in the six months ended 31 March 2006 (2005: net cash provided £9.6
million) including the one off outflow arising from the settlement with Abbott
of £15.3 million (2005: nil). Net cash and liquid resources at 31 March 2006
amounted to £161.7 million (30 September 2005: £175.6 million).
Revenue in the period was £27.7 million (2005: £9.8 million) plus the US$255
million (£144.7 million) received from Abbott in October 2005 and paid out
immediately to CATs licensors as part of the litigation settlement with Abbott
in respect of HUMIRA (see note 3). The remaining royalty income consists of
royalties received on sales of HUMIRA for the three months to 31 December 2005
(£6.9 million) and accrued royalties for the three months to 31 March 2006 (£6.0
million), plus the first two of five annual payments of US$9.375 million (£10.9
million), (the first received from Abbott in January 2006, the second due in
January 2007, conditional only on there having been sales of HUMIRA in the 2006
calendar year, under the terms of the settlement agreement). Licence fees of
£2.6 million (2005: £2.5 million) were recognised as revenue in the period
having been released from deferred income brought forward at 30 September 2005.
Clinical milestone payments of £0.3 million (2005: £0.5 million) were received
during the quarter. Other revenues of £1.1 million (2005: £0.3 million) were
received during the quarter, primarily consisting of a payment received from
MorphoSys under the terms of the December 2002 Framework Agreement. In April
2006, Chugai extended its licence of CATs libraries for a further year; CAT
received $1.0 million in licence fees in May 2006. No revenue was recognised in
the period regarding this extension payment.
Direct costs comprise primarily the US$255 million payment referred to above and
US$4 million (£2.3 million) for the payments made or due to CATs licensors out
of the two amounts of US$9.375 million recognised as revenue in the period (see
note 4).
Operating costs for the period amounted to £24.2 million (2005: £27.3 million).
Research and development expenses were £17.6 million for the six months ended 31
March 2006 (2005: £17.3 million). External development costs for the six month
period were £5.3 million (2005: £6.0 million).
General and administration expenses decreased to £6.5 million for the six months
ended 31 March 2006 (2005: £10.0 million). Litigation expenses decreased from
£3.1 million from the six months ended 31 March 2005 to £0.1 million in the six
months ended 31 March 2006, with the settlement of the litigation with Abbott in
October 2005. Included in general and administration expenses for the six months
ended 31 March 2006 is a foreign exchange credit of £0.4 million arising from
the retranslation of US dollar deposits held, a charge of £0.7 million arose in
the comparative period.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
Results for the SIX MONTHS ended 31 MARCH 2006
This financial information has been prepared in accordance with International
Financial Reporting Standards (IFRS) as endorsed by the European Union.
Preliminary results for the year ended 30 September 2005 were prepared and
presented in accordance with IFRS in the 2005 Annual Report. Results for the six
months ended 31 March 2005 have been restated for the first time in accordance
with IFRS, having previously been presented under UK GAAP. See notes 1, 2 and 3
for further details.
CONSOLIDATED INCOME STATEMENT
(unaudited) Six Three Three Six Year
months months months months Ended
ended 31 ended ended 31 ended 31 30
March 31 March December March 2005 September
2006 2006 2005 2005
£000 £000 £000 £000 £000
Revenue (note 7) 27,729 13,723 14,006 9,845 49,242
Royalty buy out, settlement with 144,722 - 144,722 - -
Abbott (note 3)
Total revenue 172,451 13,723 158,728 9,845 49,242
Direct costs (2,529) (1,367) (1,162) (2,035) (10,503)
Royalty buy out, settlement (144,722) - (144,722) - -
with Abbott (note 3)
Total direct costs (147,251) (1,367) (145,884) (2,035) (10,503)
Gross profit 25,200 12,356 12,844 7,810 38,739
Research and development expenses (17,631) (8,695) (8,936) (17,349) (37,017)
General and administration (6,527) (3,830) (2,697) (10,000) (12,375)
expenses
Operating profit/(loss) 1,042 (169) 1,211 (19,539) (10,653)
Profit on sale of available for - - - - 1,461
sale investments
Investment income 3,563 1,687 1,876 3,034 7,507
Finance costs (10) (3) (7) (27) (233)
Profit/(loss) before tax 4,595 1,515 3,080 (16,532) (1,918)
Taxation - - - - (1,047)
Profit/(loss) for the period 4,595 1,515 3,080 (16,532) (2,965)
attributable to equity holders of
the parent
Profit/(loss) per share - basic 8.7p 2.9p 5.9p (35.1)p (6.0)p
(pence) (note 6)
Profit per share - 8.6p 2.8p 5.8p n/a n/a
diluted (pence) (note 6)
The profit/losses for all periods arise from continuing operations.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2006
CONSOLIDATED BALANCE SHEET
(unaudited) As at 31 As at 31 As at 30
March 2006 March 2005 September
2005
£000 £000 £000
Fixed assets
Intangible assets 10,340 5,307 2,581
Property, plant and equipment 12,403 12,166 11,706
Available for sale investments 12,322 11,301 9,729
35,065 28,774 24,016
Current assets
Trade and other receivables 18,708 7,715 14,566
Short term investments 78,952 98,953 100,037
Cash and cash equivalents 83,259 79,811 76,378
180,919 186,479 190,981
Total assets 215,984 215,253 214,997
Liabilities
Current liabilities
Obligations under finance leases (246) (390) (405)
Overdraft (551) (579) (803)
Trade and other payables (7,080) (34,749) (22,335)
Current taxation (1,047) - (1,047)
Deferred income (5,385) (5,451) (4,977)
(14,309) (41,169) (29,567)
Non-current liabilities
Obligations under finance leases - (246) (40)
Deferred income (17,754) (19,956) (18,575)
Deferred taxation (2,956) (2,457) (2,178)
(20,710) (22,659) (20,793)
Total liabilities (35,019) (63,828) (50,360)
Net assets 180,965 151,425 164,637
Equity
Called-up share capital 5,310 5,161 5,164
Share premium account 310,883 301,716 301,804
Other reserves 24,250 22,188 21,742
Retained losses (159,478) (177,640) (164,073)
Total equity shareholders funds 180,965 151,425 164,637
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2006
STATEMENT OF CHANGES IN EQUITY
(unaudited) Share Share Other Profit and
capital premium reserves loss reserve
£000 £000 £000 £000
Balance at 1 October 2005 5,164 301,804 21,742 (164,073)
New shares issued 146 9,079 - -
Available for sale investments (unrealised - - 1,814 -
gain)
Share option charge - - 1,029 -
Foreign exchange - - (335) -
Retained profit for the period - - - 4,595
Balance at 31 March 2006 5,310 310,883 24,250 (159,478)
CONSOLIDATED CASH FLOW STATEMENT
(unaudited) Six months Six months Year
ended 31 ended 31 ended 30
March 2006 March 2005 September 2005
£000 £000 £000
Net cash (used)/provided by operating (13,003) 9,617 6,062
activities
Net cash from/(used in) investing 11,101 (31,869) (31,892)
activities
(1,902) (22,252) (25,830)
Net cash from financing activities 9,026 75,753 75,653
Increase in cash and cash equivalents 7,124 53,501 49,823
(net of overdraft)
Cash and cash equivalents at beginning
of year (net of overdraft) 75,575 25,737 25,737
Effect of foreign exchange rate 6 (21) 10
changes
Effects of fair value movements 3 15 5
Cash and cash equivalents at end of
period (net of overdraft) 82,708 79,232 75,575
Notes to the financial information
1. Accounting policies
For financial periods commencing on or after 1 October 2005, CAT is producing
its financial results in accordance with IFRS as endorsed by the European Union
and, accordingly, has restated the comparative figures for the six months ended
31 March 2005, previously produced in accordance with UK GAAP. Preliminary
results were prepared in accordance with IFRS for the year ended 30 September
2005 and presented in the 2005 Annual Report. Except for the subsequent
adjustment, detailed in note 3 below, the results for the 2005 financial year
have been presented in this financial statement on the same basis. See note 2
below for further details of the impact of the restatement of the comparative
figures.
This financial information has been prepared in accordance with the IFRS
policies expected to be in place in 2006 as set out in the Annual Report for the
year ended 30 September 2005. During the year ending 30 September 2006, CAT
adopted IAS 32 (International Accounting Standard) and IAS 39 and there were no
material adjustments as a result of that adoption. The Annual Report for the
year ended 30 September 2005 sets out the UK GAAP accounting policies together
with the relevant IFRS differences.
2. Restatement of the comparative figures
Preliminary results prepared in accordance with IFRS for the year ended 30
September 2005 were presented in the 2005 Annual Report with details of the key
reconciling items. The results contained in this statement for the year ended 30
September 2005 are the same as those previously presented except for the
adjustment detailed below in note 3.
The net effect of presenting the comparative figures for the six months ended 31
March 2005 under IFRS rather than previously reported UK GAAP is to increase the
loss after tax reported from £16.3 million to £16.5 million principally due to
the IFRS 2 share option charge for the period (£0.8 million) partially offset by
a foreign exchange credit regarding the translation of overseas operations (£0.5
million). Net assets increased from £145.6 million to £151.4 million principally
due to the recognition of an unrealised holding gain arising from recording
available for sale investments at fair value as opposed to cost, as previously
recorded under UK GAAP. The net effect of the restatement on the cashflow is
nil, all changes are reclassifications for disclosure purposes.
Further details of the revised accounting policies adopted in accordance with
IFRS and of the key reconciling items for the year ended 30 September 2005 are
contained within the 2005 Annual Report.
3. Results for year ended 30 September 2005
The results for the six months ended 31 March 2006 have been prepared under IFRS
as endorsed by the European Union. These results include as revenue and as a
direct cost the US$255m received from Abbott in October 2005 and paid out
immediately to CATs licensors as a part of the litigation settlement with Abbott
in respect of HUMIRA. Previously this receipt and subsequent payment were
accounted for in the same manner as the remainder of the litigation settlement
with Abbott, as an adjusting post balance sheet event, and therefore included in
revenue and direct costs in both the 2005 UK GAAP financial statements and the
preliminary IFRS reconciliations. The 2005 Annual Report was finalised on 28
November 2005 and reported on by CATs auditors, Deloitte & Touche LLP
(Deloitte). The 2005 Annual Report also contains the preliminary reconciliations
to IFRS, which were also reported on by Deloitte.
Since that time, there has been continuing debate within the accounting
profession as to the interpretation of IFRS and in particular its relationship
with US GAAP and, to a lesser extent, UK GAAP. As a consequence of this debate
and after reporting on the preliminary IFRS reconciliation contained in the 2005
Annual Report, Deloitte have subsequently altered their view on the
interpretation and application of IFRS to the payments of US$255 million
received and made by CAT in October 2005 as a part of the litigation settlement
with Abbott. Deloittes revised interpretation and application of IFRS to these
payments, contrary to the treatment endorsed in the preliminary IFRS
reconciliation contained in the 2005 Annual Report, is that they should be
treated as a non-adjusting post balance sheet event.
Under this revised interpretation and application of IFRS the payments received
from Abbott and made by CAT to its licensors should not be included as 2005
revenues and direct costs but should be treated as revenue and direct costs in
the 2006 financial year. Accordingly, these amounts will be included and treated
as revenue and as a direct cost in CATs 2006 financial statements prepared under
IFRS.
It should be emphasised that this is a technical accounting adjustment,
reflecting one element of the Abbott settlement as a non-adjusting rather than
an adjusting post balance sheet event, and there are no implications for cash
flow or operating loss.
4. Settlement with Abbott
In November 2003, CAT announced that it had commenced legal proceedings against
Abbott in the High Court in London regarding the royalty rate payable on sales
of HUMIRA under a licence agreement between the parties. In October 2005, CAT
announced it had reached an agreement with Abbott regarding royalties payable to
CAT under this licence agreement:
Abbott would pay CAT royalties at 2.688% on sales of HUMIRA from 1 January 2005.
CAT would retain all of these royalties.
CAT would retain all royalties received from Abbott in respect of sales of
HUMIRA up to 31 December 2004, net of approximately £7.6 million which was paid
to its licensors, Medical Research Council, Scripps Institute and Stratagene.
Abbott paid CAT the sum of US$255 million, which CAT paid to its licensors in
lieu of their entitlement to royalties arising on sales of HUMIRA from 1 January
2005 onwards. This was both received from Abbott and paid to CATs licensors in
October 2005.
CAT refunded to Abbott approximately £9.2 million for royalties paid in respect
of sales of HUMIRA from 1 January 2005 through to 30 June 2005.
Abbott would pay CAT five annual payments of US$9.375 million commencing January
2006, contingent on the continued sale of HUMIRA. From each of these payments,
CAT would pay US$2 million to its licensors.
5. Convenience translation
The consolidated financial statements are presented in Sterling. The following
table provides a US Dollar convenience translation of certain elements of the
consolidated financial statements as of and for the period ended 31 March 2006.
The Dollar amounts are presented solely for the convenience of the reader and
have been calculated using an exchange rate of £1:US$1.73978, the closing rate
as of 31 March 2006. No representation is made that the amounts could have been
or could be converted into US Dollars at this or any other rates.
Six months Six months
ended 31 ended 31
March March
2006 2006
Convenience
translation
$000 £000
Revenue (excluding Royalty buy out) 48,242 27,729
Gross profit 43,842 25,200
Research and development expenses (30,674) (17,631)
General and administration expenses (11,356) (6,527)
Operating profit 1,812 1,042
Profit after tax 7,994 4,595
Fixed assets 61,005 35,065
Current assets 314,759 180,919
Total assets 375,764 215,984
Current liabilities (24,895) (14,309)
Non-current liabilities (36,030) (20,710)
Total liabilities (60,925) (35,019)
Net assets 314,839 180,965
Net cash used by operating (22,622) (13,003)
activities
Net cash from investing activities 19,313 11,101
(3,309) (1,902)
Net cash from financing activities 15,703 9,026
Increase in cash and cash 12,394 7,124
equivalents (net
of overdraft)
Cash and cash equivalents at 131,484 75,575
beginning of
year (net of overdraft)
Effect of foreign exchange rate 10 6
changes
Effect of fair value movements 5 3
Cash and cash equivalents at end of 143,893 82,708
period (net of overdraft)
6. Profit/(loss) per share
Basic net profit/loss per share is calculated by dividing net profit/loss for
the period by the weighted average number of ordinary shares outstanding during
the period. The computation of diluted net profit/loss per share reflects the
potential dilution that could occur if dilutive securities and other contracts
to issue ordinary shares were exercised or converted into ordinary shares or
resulted in the issue of ordinary shares that then shared in the net profit/loss
of the Group.
The loss per ordinary share and diluted loss per share are equal because share
options are only included in the calculation of diluted earnings per share if
their issue would decrease the net profit per share or increase the net loss per
share.
The calculation is based on information in the table shown below.
Six months Six months Year
ended 31 ended 31 ended 30
March March September
2006 2005 2005
Profit/(loss) for the period 4,595 (16,532) (2,965)
attributable to
equity holders of the parent (£000)
Weighted average number of shares 52,732,901 47,128,201 49,381,476
Weighted average number of dilutive 626,586 n/a n/a
options
The Company had ordinary shares in issue of 53,100,128 and a total of 2,296,218
ordinary shares under option as of 31 March 2006.
7. Revenue
Six months Six months Six months Year
ended 31 ended 31 ended 31 ended 30
March March March September
2006 2006 2005 2005
Convenience
translation
US$000 £000 £000 £000
Royalties (excluding buy out) 41,362 23,774 5,166 40,521
Licence fees 4,522 2,599 2,505 5,168
Technical milestones - - 1,099 1,099
Clinical milestones 492 283 518 1,118
Contract research fees 33 19 223 356
Other 1,834 1,054 334 980
48,243 27,729 9,845 49,242
Royalty buy out 251,783 144,722 - -
Total 300,026 172,451 9,845 49,242
8. Reconciliation of profit/(loss) from operations to net cash from operating
activities
Six months Six months Six months Year
ended ended 31 ended 31 ended 30
31 March March March September
2006 2006 2005 2005
Convenience
translation
US$000 £000 £000 £000
Operating profit/(loss) 1,813 1,042 (19,539) (10,653)
Depreciation charge 2,300 1,322 1,347 2,693
Amortisation of intangible fixed assets 325 187 525 3,251
Profit/(loss) on disposal of fixed assets 21 12 - (2)
Fair value movements on cash and cash
equivalents and short term investments 150 86 5 (75)
Foreign exchange movements (54) (31) (535) 24
Share-based payments 1,790 1,029 847 1,742
Operating cashflow before movements in 6,345 3,647 (17,350) (3,020)
working capital
Increase in debtors (8,017) (4,608) (2,720) (8,871)
Decrease in deferred income (718) (413) (403) (2,258)
(Decrease)/increase in creditors (26,898) (15,460) 27,620 13,988
(excluding deferred income)
Cash used in operations (29,288) (16,834) 7,147 (161)
Interest paid (344) (198) (29) (49)
Interest received 7,010 4,029 2,499 6,272
Net cash (used in)/provided by operating (22,622) (13,003) 9,617 6,062
activities
9. Analysis of cash flows
Six months Six months Six months Year
ended 31 ended 31 ended 31 ended 30
March March March September
2006 2006 2005 2005
Convenience
translation
US$000 £000 £000 £000
Net investment in short term investments 36,528 20,996 (31,006) (32,000)
Purchases of property, plant and equipment (3,445) (1,980) (863) (1,998)
Purchases of intangible assets (13,824) (7,946) - -
Proceeds on disposal of property, plant
and equipment 54 31 - 2
Proceeds from the sale of fixed asset - - - 2,104
investments
Net cash from/(used in) investing 19,313 11,101 (31,869) (31,892)
activities
Issue of ordinary share capital 16,049 9,225 75,937 76,028
Capital elements of finance lease rental (346) (199) (184) (375)
payments
Net cash from financing activities 15,703 9,026 75,753 75,653
10. Analysis and reconciliation of net funds
1 October Fair value Exchange 31 March
movements movement 2006
2005 Cash flow
£000 £000 £000 £000 £000
Cash and cash equivalents 76,378 6,872 3 6 83,259
Overdrafts (803) 252 - - (551)
75,575 7,124 3 6 82,708
Short term investments 100,037 (20,996) (89) - 78,952
Net cash and liquid resources 175,612 (13,872) (86) 6 161,660
Finance leases (445) 199 - - (246)
Net funds 175,167 (13,673) (86) 6 161,414
11. Financial Statements
The preceding information, comprising the Consolidated Income Statement,
Consolidated Balance Sheet, Consolidated Cash Flow Statement and associated
notes, does not constitute the Companys statutory financial statements for the
year ended 30 September 2005 within the meaning of section 240 of the Companies
Act 1985. Results for the periods ending 31 March 2006 and 31 March 2005 have
not been audited. The results for the year ended 30 September 2005 as set out
above have been prepared in accordance with IFRS. They are based on the
statutory financial statements for the year ended 30 September 2005 prepared
under UK GAAP amended by adjustments arising from the implementation of IFRS.
The statutory financial statements, upon which the auditors reported without
qualification, have been filed with the Registrar of Companies.
The Annual Report, containing financial statements, for the year ended 30
September 2005 is available from CATs registered office:
Cambridge Antibody Technology Group plc
Milstein Building
Granta Park
Cambridge
CB1 6GH, UK
Tel: +44 (0) 1223 471471
INDEPENDENT REVIEW REPORT TO CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 31 March 2006 which comprises the income statement, the
balance sheet, the statement of changes in equity, the cash flow statement and
related notes 1 to 11. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
International Financial Reporting Standards
As disclosed in note 1, the next annual financial statements of the group will
be prepared in accordance with International Financial Reporting Standards as
adopted for use in the EU. Accordingly, the interim report has been prepared in
accordance with the recognition and measurement criteria of IFRS and the
disclosure requirements of the Listing Rules.
Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2006.
Deloitte & Touche LLP
Chartered Accountants
Cambridge
22 May 2006
Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc (CAT) that are forward looking statements. All statements
other than statements of historical facts included in this press release may be
forward looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. These forward looking statements are based on numerous
assumptions regarding the companys present and future business strategies and
the environment in which the company will operate in the future. Certain factors
that could cause the companys actual results, performance or achievements to
differ materially from those in the forward looking statements include: market
conditions, CATs ability to enter into and maintain collaborative arrangements,
success of product candidates in clinical trials, regulatory developments and
competition. We caution investors not to place undue reliance on the forward
looking statements contained in this press release. These
statements speak only as of the date of this press release, and we undertake no
obligation to update or revise the statements.
This information is provided by RNS
The company news service from the London Stock Exchange II
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