Final Results

RNS Number : 0232R

Epistem Holdings plc

22 October 2013

 



RNS Press Release

For release: 22^nd October 2013: 7.00 AM

Preliminary Results to the 30 June 2013

Epistem Holdings Plc (LSE: EHP), the biotechnology and personalised medicine company, announces today its preliminary results for the year to the 30 June 2013. The 2012/13 financial year saw Epistem continue to accelerate investment in its core development programmes, whilst delivering a solid set of financial results.

Financial and Operating Highlights

·    Total sales of £5.4m (2012: £5.6m) driven by a firm performance from the Preclinical Research Services and Personalised Medicine divisions.

·    Following high levels of investment made in our Personalised Medicine technology (Genedrive^®), the Company reports a loss of £1.2m (2012: £0.2m loss after tax).

·    Genedrive^® development and testing progressed, notwithstanding termination of Becton Dickinson agreement post the period end.

·    Preparation for the final stages of Tuberculosis (TB) clinical testing and Indian regulatory submission with launch of Genedrive^® expected in calendar H2 2014. Initial TB clinical papers submitted for publication.

·    Successfully completed first patient stratification assessments in clinical trials for Genedrive^® pharmacogenomic applications.

·    Announcement of Euro 1.5m 'Hepatitis C' collaboration with INSERM (Institut National de la Santé et de la Recherche Médicale)and Pasteur Institute for development of 'Hepatitis C' (HCV) test.

·    Preclinical Research Services sales of £2.9m (2012: £2.9m) with expanded offering in biodefence, leukemia imaging and rheumatoid arthritis.

·    Ongoing investment in Novel Therapies lead programme.

·    £4.2m cash placing completed in December 2012 resulting in strengthened cash balance of £6.5m at 30 June 2013.  

For further details please contact:

Epistem Plc

Matthew Walls: Chief Executive Officer                                                         [phone]

John Rylands: Finance Director                                                                                                                                                

Peel Hunt LLP

James Steel                                                                                                           [phone]

Vijay Barathan

Walbrook PR

Mike Wort                                                                                                             [phone]

Anna Dunphy

Chairman's Statement

In the results for the year ended 30 June 2013, we report a steady trading position which alongside a strengthened and accelerated investment in the advancement of our molecular diagnostic technology Genedrive^® has resulted in widening reported losses. It had been our intention to finalise the prelaunch stages of our TB assay on the Genedrive^® platform during the 2013 financial year and to recognise milestone payments, but due to technical and manufacturing issues we are disappointed that this was not achieved as part of the collaboration with Becton Dickinson (BD). Whilst we failed to meet the milestones in the timescale agreed with BD, resulting in the termination of our supply and distribution agreement, we remain in dialogue with the group. We are now finalising the technical development and scale up of our Genedrive^® platform for its first application in Tuberculosis (TB) diagnosis. We expect to complete the work necessary to enter into the Indian TB regulatory process over the coming months in preparation for a market launch in the second half of 2014. We are also in discussions with prospective distribution partners in relation to tests from our broader infectious disease and pharmacogenomic portfolio.

Our key priority at the current time is to resolve the outstanding technical and manufacturing issues we have had with Genedrive^® and we are confident that these issues, which are small in number, are resolvable and that we will be in a position to have our TB assay independently field tested around the end of 2013.

We believe that the launch of our first Genedrive^®product in TB coupled with the earlier reported India supply and distribution agreement with Xcelris provides very attractive growth opportunities and we are continuing to progress a range of partner discussions across multiple potential applications.

Financial Results

Further details of the results for the period are covered in the Chief Executive's review, but financially the year to 30 June 2013 saw the Company deliver revenues of £5.4m (2012: £5.6m). Following high levels of investment made in our Personalised Medicine (Genedrive^®) and Novel Therapies programmes, the Company reported a loss of £1.2m (2012: £0.2m loss after tax). After the successful completion of the £4.2m cash placing in December 2012, cash reserves at 30 June 2013 were £6.5m (2012: £4.7m). Reported cash reserves at the end of June 2013 included the BD upfront technology access fee payment of £0.6m, subsequently returned to BD on termination of the agreement post the year end. Unaudited cash reserves at 30 September 2013 were £5.4m.   

The Company continues to make progress across each of its three divisions as outlined below:

·    Preclinical Research Services revenues remained steady over the year at £2.9m (2012: £2.9m). We continue to develop our range of high margin service offerings alongside our cornerstone US government bio-defence contract.  The division is building and extending its core scientific strengths, especially in the US, to maintain a solid platform for future growth.  

·    Following last years significant step up in growth, Personalised Medicine revenues remained broadly flat at £2.5m (2012: £2.7m), supported by our ongoing pharmaceutical collaborations and an increased investment in our Genedrive^® developments. In addition to gearing up Genedrive^® for use in TB and infectious diseases, the division is preparing tests for pharmacogenomic analysis including near patient clinical management in areas such as cancer treatment, Hepatitis C therapeutic intervention and 'patient stratification' for clinical trials. We are also pleased to report on the successful completion of our first two patient stratification clinical studies which we expect to see emerge as an exciting area of growth for the Company. Further details are set out in the Chief Executive's Review. The reported Personalised Medicine revenues for the year included Genedrive^® development income, primarily from our work with the US department of defence, of £0.4m (2012: £0.4m). 

·    Our Personalised Medicine division also recently announced the initiation of a three (3) year, Euro 1.5m 'Hepatitis C' collaboration with INSERM and the Pasteur Institute for development of 'Hepatitis C' (HCV) Point-of Care test. The global need for this test is substantial and we will be developing this test as part of our expanding menu of infectious disease assays.

·    We are in the final stages of completing our Genedrive^® unit testing and TB assay manufacturing scale up. GE Healthcare have commenced scale up of our TB assay product and the final phase of the Genedrive^® unit testing is now underway in preparation for independent field testing and our India clinical trials. We anticipate sales of Genedrive^® in the second half of 2014 which will mark the beginning of Epistem's first product related revenues and disrupt traditional methods of TB diagnosis by offering the ability to undertake 'near patient' Point-of-Care molecular diagnosis. The Board believes that Genedrive^® will bring about a breakthrough in rapid, high sensitivity and low cost molecular (DNA) diagnostic testing across a broad range of disease areas.

·    Novel Therapies's drug development programme continues and we are carefully investing in a limited number of leads with the division reporting nil revenues for the year (2012: £0.0m).  Collaborative discussions with potential partners are ongoing to progress our leads in the areas of Regenerative Medicine and Oncology.

·       Based on the ongoing investment in our Genedrive^®and Novel Therapies programmes, the Company reports a loss for the year of £1.2m (2012: £0.2m loss for the year) and loss per share of 12.5p (2012: 2.9p loss per share).

Outlook

Our key priority in this financial year is to gain approval for the launch of Genedrive^® into a clinically regulated marketplace whilst continuing its broad menu of development in clinical and non-clinical fields.

I remain wholly convinced that through our investors funding and support we have developed a strategically valuable asset of real importance to those operating in the field of molecular diagnostics.

To be able to realise this value we need not only to resolve the current technical issues, which I believe are resolvable, but to invest further in resource and infrastructure to support our future partnerships. We will need to demonstrate our ability to scale up production and have sufficient depth in management to ensure deliverability as we move from the innovation phase to the industrial phase - these processes take time and extreme diligence, issues of which we are fully aware given the recent BD experience. Over the coming months we are targeting the following key objectives in relation to Genedrive^® and within the wider Personalised Medicine group:

·      Entering into the final stages of Indian regulatory approval and completion of the TB clinical trial process

·      Entering Genedrive^® into preliminary clinical studies for TB as a forerunner to a WHO recommendation

·      The strengthening of management in Diagnostics with the appointment of a domain relevant COO for that division with main Board representation

·      Progress with the HCV and other core development programmes

·      Progress our discussions with potential pharmaceutical partners in relation to the use of Genedrive^® for use in clinical trials re patient stratification.

We are dedicated to driving the process with Genedrive^® so that we can crystallize the strategic value of this technology.

Whilst the outlook is naturally dominated by Genedrive^®, I see the continued solid progress in Preclinical Research Services and the pharmacogenomics offering within Personalised Medicine helping to underpin the fundamentals of Epistem and whilst we have scaled back our investment into Novel Therapies we continue to examine ways in which we can realise the value and heritage of this key area.

I would like to thank the CEO for his support and leadership, the Board and our employees for their effort and commitment in driving Epistem's progress over the past year, as well as our investors whose support has provided a stable platform for our continued growth plans.

David Evans

Chairman

22 October 2013

Chief Executive's Review

Whilst we continue to develop and strengthen our service based revenue generating businesses, the delays around the completed development of our first product Genedrive^® have weighed heavily on our anticipated outturn and market expectations for the year. The financial results for the Group presented in this announcement reflect the Group's trading for the year to 30 June 2013 and for the comparative period to 30 June 2012.

Financial review

The Company reports a turnover of £5.4m (2012: £5.6m) for the year ended 30 June 2013. Revenues were underpinned by the Preclinical Research Services division, which delivered sales of £2.9m (2012: £2.9m). The Personalised Medicine division delivered sales of £2.5m (2012: £2.7m), with the Novel Therapies division reporting no sales over the period.

Consolidated territory revenues were split US 59% (2012: 68%), EU/ROW 14% (2012: 19%) and UK 27% (2012: 13%).  Year on year Preclinical Research Services sales remained steady delivering a similar year-on-year operating profit of £0.8m (2012 £0.8m). Personalised Medicine sales were broadly similar to last year, which alongside our increased resource and investment in Genedrive^®saw the division report an operating loss of £0.1m (2012: £0.4m profit) over the year. Novel Therapies, investing in its lead development programme, reported an operating loss of £0.8m (2012: operating loss £0.8m) with central administration costs largely unchanged over the year at £1.4m (2012: £1.3m) giving rise to an overall group operating loss for the year of £1.5m (2012: loss £0.8m). 

The benefit of a £0.3m R&D and other tax credits saw the Group report a loss after tax for the year of £1.2m (2012: loss £0.2m) with year end headcount in the Company at 67 (2012: 63).

Cash balances at the end of June 2013 were £6.5m (2012: £4.7m) following the completion of the £4.2m cash placing in December 2012. Reported cash reserves at the end of June 2013 included the BD upfront technology access fee payment of £0.6m, subsequently returned to BD on termination of the agreement. Unaudited cash reserves at 30 September 2013 were £5.4m.   

Reported loss per share was 12.5p (2012: 2.9p loss per share).

The Company's annual audit will be completed in October 2013 by HW Chartered Accountants and their audit report will be included with the annual accounts which are expected to be distributed to shareholders shortly.

Operating review

Preclinical Research Services

Preclinical Research Services delivered a steady year-on-year revenue performance whilst maintaining a 27% operating margin (£0.8m operating profit). The division provides a high margin, niche, preclinical service offering across our core disease areas of oncology, mucositis, inflammatory bowel disease and dermatology.  The year saw the initiation of our first rheumatoid arthritis (RA) and oncology imaging leukaemia models, strong demand for our inflammatory bowel disease models and attainment of GcLP accreditation for our histology services.

Our collaboration with the US National Institutes of Health's biodefence programme continues to expand and accounts for roughly a third of the divisions revenues.  We have collaborated as part of this programme for over 7 years and provide a role as 'Subject Matter Experts' (SME) in radiation treatment. Alongside a broadening client base, we are currently preparing to extend our service capability to set up small laboratory facility in Baltimore to engage more closely with the US government departments and our local US East Coast clients. The US government remains committed to targeting treatment of radiation sickness following a nuclear incident/event.

Over the coming year, we expect to build on our new oncology (imaging) services, RA and inflammation models from which we expect to see continued ongoing growth.

Personalised Medicine

Pharmacogenomics

Following the previous year's strong uplift in revenues, this years revenues remained steady at to £2.1m (2012: £2.3m) underpinned by our molecular studies for GlaxoSmithKline, Novartis and Sanofi Aventis. These studies utilise Epistem's proprietary RNA amplification technology and oncology (cancer) bioinformatics to provide biomarker discovery (hair and other tissues) and translational support for oncology drug development and fibrosis drug discovery programmes. The Pharmacogenomics division (formerly Biomarker division) works with major pharmaceutical and biotech business groups to provide a suite of preclinical and clinical pharmacodynamic biomarkers to measure the effect of a drug on targeted tissue (gene activated pathways).  Our expertise in defining the consequences of gene target modulation in epithelial tissue continues to advance, with the addition of several key oncology target signatures over the past year as well as being utilised in key target identification programmes with business partners.

We are now beginning to implement our pharmacogenomics Genedrive^® applications with major pharmaceutical strategic partners. We are working closely with Novartis on the clinical expansion of our oncogene identification from whole blood for myeloproliferative disorders and with GlaxoSmithKline for the rapid assessment of genotypes for 'patient stratification' for therapeutic treatment. During the year we successfully completed two Genedrive^® clinical assessments for 'on the spot' stratification of patients based on their genotypic characteristics. The identification of genotypic and/or target mutations will allow patients to be 'stratified' for 'Point of Care' administration of the correct course of 'personalised' therapeutic treatment.  Over the coming year we will continue our work developing Genedrive^® for use as a highly sensitive screening tool for identification and monitoring of the presence of mutation targets in blood.  The broadening adoption of Genedrive^® for use in pharmacogenomics applications is anticipated to present additional revenue generating opportunities over the coming year.   

We have also recently announced a Euro1.5m, three (3) year collaboration with INSERM the French National Institute of Health and Medical Research, starting from September 2013, to develop a Point-of-Care predictive and prognostic test that will enable tangible improvements in the health and quality of life of chronic hepatitis C (HCV) patients. Technical completion of the assay is scheduled for mid way through 2014 with an expected launch in 2015. Alongside retaining full freedom to operate for our HCV test, we will be seeking strategic partnerships with non-governmental organisations, national health and development agencies. Between 150 and 180 million people live with HCV infection globally and together with HBV infection - these infections cause around 1 million deaths each year.

Diagnostics

Genedrive^® is a novel, disruptive and highly sensitive molecular diagnostic tool with the capability of targeting a near patient, low cost and rapid turnaround diagnosis (~30-60mins including sample preparation) across a broad spectrum of bacterial, viral, fungal and somatic mutational disease areas. We expect to see molecular diagnostics begin to dominate the next generation of diagnostic testing and to change the speed, accuracy and workflows in near patient 'Point of Care' diagnostic assessment.  Over the coming year, we intend to accelerate our product developments through increased investment in our manpower resource and expertise, enhance our manufacturing and regulatory control and further develop our channel partner distribution strategy to take advantage of the substantial growth opportunities open to us. 

Despite the recent setback with the Becton Dickinson agreement, we are focused on finalising our core Genedrive^®developments with the objective of promptly gaining Indian regulatory approval and the launch of our first major infectious disease assay in Tuberculosis (TB). During the year we worked closely with the Xcelris and Becton Dickinson teams to prepare our first product for market. We have though experienced assay manufacturing delays and more recently Genedrive^® unit technical problems, which are being resolved and are undergoing final phase validation. The assay manufacturing delays were in relation to scale up of manufactured product, which after a detailed and thorough assessment of the manufacturing process with GE Healthcare has yielded a product which is operating consistently under analytical, clinical and field testing conditions. More recently, we identified unit problems related to firmware and software arising from our internal stress testing of the unit. We are carefully and diligently working through these identified problems to ensure that verification and validation of our unit is assured. This has delayed our final submission for Indian regulatory approval which we anticipate in H1 2014.

We maintain an ongoing dialogue with Becton Dickinson and we will be extending our discussions with other potential partners as appropriate. The Xcelris Indian commercial collaboration alone (supply and distribution arrangement in Tuberculosis) includes escalating annual volume requirements for units and assays is capable of delivering significant revenues to Epistem over the next 3-5 years from H2 2014 which is when we expect to commence commercial sales. TB represents our first significant revenue prospect and the initial opportunity to see the application of our Genedrive^® platform used both inside and outside laboratory settings enabling 'near patient' testing or testing in remote field locations.

Over the past year, we have designed a TB assay capable of establishing a new standard in antibiotic resistance testing. The assay possesses several important technical advantages over competitor products and coupled with an industry leading speed to result, ease of use and pricing, will we believe deliver a highly competitive product to market.  We are also working with the Foundation for Innovative New Diagnostics (FIND, Geneva) to build our case for WHO recommendation of our TB assay. Over the coming months we will be publishing our first clinical data on our TB test and how this compares to the industry leaders in addressing the US$1bn TB diagnostics market.

We are advancing our assay development across a range of other infectious diseases, with tests under development in malaria, dengue and a range of sexually transmitted diseases. We expect to supply and distribute these high volume tests through our channel partner strategy.

Alongside healthcare applications, we continue to see opportunities for the use of Genedrive^® for biosurveillance and forensic targets.  We are working closely with the US government on a number of programmes to identify biothreats and infectious diseases in military settings. We are preparing to continue to the next phase of our US Government contract with the Defence Threat Reduction Agency (DTRA) for pathogen detection. This has been recently delayed due to the US government budgetary issues, but is anticipated to generate up to USD$0.6m in development funding over the next 6 months and if successful, extend into broader US Department of Defence use. We anticipate further growth in the US Department of Defence areas over the coming year.

Novel Therapies

The Novartis collaboration was completed in March 2013 and we now retain intellectual property rights over our collaborative leads and continue to progress discussions with partner groups over the development of our Novel Therapies lead programme. Given the investment requirements of our Genedrive^® programme, we will maintain a controlled approach to our ongoing investment in our Novel Therapies lead programme. The timing of a license opportunity and/or funding support remains difficult to judge although we remain confident in our development programme.

We have continued to define the mechanism of action of our lead candidates - understanding the cell biology and signalling pathways which regulate the cell/stem cells in the areas of regenerative medicine and oncology and we are considering small molecule partnerships to establish a portfolio of agents which regulate signalling pathways and cell biology.

We will evaluate our other drug discovery and development opportunities with major industry players to identify new lead developments and to expand our discovery and early stage development platform.

Integrated business model

The establishment of our independent divisions has created a portfolio of revenue driven business units. Epistem's objective is to provide a financially robust business, whilst offering the potential for significant financial upside from the development of our Personalised Medicine, Novel Therapies and Preclinical Research Services divisions. We continue to enhance and exploit our competence in epithelial cell biology, gene pathways and molecular (personalised) medicine, whilst retaining a high degree of commercial independence across each division.

Outlook

Over the coming months we will be focusing on the resolution of the technical issues with the Genedrive^® unit before entering the process of Indian regulatory assessment for our TB assay. We will also commence initial evaluation studies as a forerunner to targeting a WHO recommendation, as well as completing our Indian trials in preparation for launch of our TB assay in H2 2014.  

Alongside the continued growth of our Preclinical Research Services and Pharmacogenomic divisions, we will be advancing our new HCV programme with INSERM/Pasteur and other ongoing programmes with the US Department of Defence, alongside the development and use of Genedrive^® for use in clinical trials for patient stratification.

Our business model continues to balance a heritage of service based revenue growth with new and disruptive product technologies capable of delivering significant investor returns.

Alongside the growth of the group, we expect to strengthen our Board and management of the Diagnostics division with the appointment of a Chief Operating Officer with relevant sector expertise. We will also bolster our staff and senior management with individuals who fit with the culture and dynamism of the Company.

I would like to thank the Board, management and employees for their help and support over the past year and I look forward to updating our investors on our progress in the coming months.

Matthew H Walls

Chief Executive Officer

22 October 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2013

		2013	2012
		£000	£000
Revenue		5,356	5,560
Contract costs		(3,800)	(4,112)
Discovery and development costs		(1,679)	(996)
General administrative costs		(1,396)	(1,287)
Operating (loss)		(1,519)	(835)
Finance income		60	109
(Loss) on ordinary activities before taxation		(1,459)	(726)
Taxation on ordinary activities		296	482
Total Comprehensive Income for the financial year		(1,163)	(244)
(Loss) per share (pence)
Basic		(12.5)p	(2.9)p
Diluted		(12.5)p	(2.9)p

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2013

	Share Capital	Share Premium Account	Employee Share incentive plan reserve	Share options reserve	Reverse acquisitions reserve	Retained earnings	Total
	£000	£000	£000	£000	£000	£000	£000
At 1 July 2011	119	11,206	(88)	691	(2,484)	(3,262)	6,182
Allotment of ordinary shares	12	2,765	-	-	-	-	2,777
Share issue costs	-	(60)	-	-	-	-	(60)
Exercise of options	2	96	-	(14)	-	-	84
Lapse of options	-	-	-	(1)	-	1	-
Purchase of own shares (SIP)	-	-	(48)	-	-	-	(48)
Recognition of equity-settled share-based payments	-	-	-	171	-	-	171
Total comprehensive income for the year	-	-	-	-	-	(244)	(244)
At 30 June 2012	133	14,007	(136)	847	(2,484)	(3,505)	8,862
Allotment of ordinary shares	12	4,312	-	-	-	-	4,324
Share issue costs	-	(140)	-	-	-	-	(140)
Exercise of options	1	51	-	(13)	-	-	39
Lapse of options	-	-	-	(8)	-		(8)
Purchase of own shares (SIP)			(46)				(46)
Recognition of equity-settled share-based payments	-	-	-	187	-	-	187
Total comprehensive income for the year						(1,163)	(1,163)
At 30 June 2013	146	18,230	(182)	1,013	(2,484)	(4,668)	12,055

CONSOLIDATED BALANCE SHEET

As at 30 June 2013

			2013		2012
			£000		£000
Non-current assets
Intangible assets			3,495		2,189
Plant and equipment			710		573
Deferred taxation			977		1,002
			5,182		3,764
Current assets
Trade and other receivables			2,006		1,978
Tax receivables			362		41
Cash and cash equivalents			6,522		4,684
			8,890		6,703
Liabilities
Current liabilities
Deferred income			210		198
Trade and other payables			1,807		1,407
			2,017		1,605
Net current assets			6,873		5,098
Total assets less current liabilities			12,055		8,862
Net Assets			12,055		8,862
Capital and reserves
Called-up equity share capital			146		133
Share premium account			18,230		14,007
Employee share incentive plan reserve			(182)		(136)
Share options reserve			1,013		847
Reverse acquisition reserve			(2,484)		(2,484)
Retained earnings			(4,668)		(3,505) )
Total shareholders' equity			12,055		8,862

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 30 June 2013

 

			2013	2013	2012	2012
			£000	£000	£000	£000
Cash flows from operating activities
		Operating (loss) for the year		(1,519)		(835)
		Depreciation, amortisation and impairment		284		193
		Share based payment expense		179		171
Operating (loss) before changes in working capital and provisions
				(1,056)		(471)
	(Increase) in trade and other receivables			(28)		(68)
	Increase in deferred income			12		123
	Increase/(decrease) in trade and other payables			400		(40)
Net cash (outflow) from operations				(672)		(456)
	Finance income		60		109
	Tax received		-		76
				60		185
Net cash (outflow) from operating activities
				(612)		(271)
Cash flows from investing activities
	Acquisition of fixed assets		(1,727)		(1,313)
Net cash outflow from investing activities
				(1,727)		(1,313)
Cash flows from financing activities
	Proceeds from issue of share capital		4,363		2,861
	Expenses of share issue		(140)		(60)
	Purchase of own shares		(46)		(48)
	(Decrease) in borrowings		-		(105)
				4,177		2,648
Net cash inflow from financing activities
Net increase in cash equivalents				1,838		1,064
Cash and cash equivalents at beginning of year				4,684		3,620
Cash and cash equivalents at end of year				6,522		4,684
Analysis of net funds
	Cash at bank and in hand			6,522		4,684
Net funds				6,522		4,684

 

 

 

NOTES TO THE PRELIMINARY RESULTS TO 30 JUNE 2013

Business segments

	Preclinical
	Research Research	Personalised	Novel
	Services	Medicine	Therapies	Unallocated	Total
	£000	£000	£000	£000	£000
Twelve months ended 30 June 2013
Revenue	2,851	2,505	-	-	5,356
Segment trading result	878	15	(718)	(1,231)	(1,056)
less depreciation and amortization	(108)	(79)	(62)	(35)	(284)
less equity-settled share-based payments	(13)	(33)	(3)	(130)	(179)
Operating profit/(loss)	757	(97)	(783)	(1,396)	(1,519)
Twelve months ended 30 June 2012
Revenue	2,895	2,665	-	-	5,560
Segment trading result	856	503	(700)	(1,130)	(471)
less depreciation and amortization	(68)	(48)	(52)	(25)	(193)
less equity-settled share-based payments	(6)	(31)	(2)	(132)	(171)
Operating profit/(loss)	782	424	(754)	(1,287)	(835)
Geographical segments
				2013	2012
				£'000	£'000
United Kingdom				1,491	720
Europe				563	977
United States of America				3,144	3,778
Asia				158	85
				5,356	5,560

 

Earnings per share

Basis of Calculation

The basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders for the year by the weighted average number of ordinary shares in issue during the year less the weighted average number of Matching Shares held by the Epistem Share Investment Plan which are not yet vested.

The diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares in relation to share options and share warrants and also the weighted average Matching Shares held by the Epistem SIP which are not yet vested. The number of share options has been adjusted to take into account the issue price and the fair value, consistent with IAS 33, "Earnings per share".

The weighted average number of shares in issue during the year was 9,299,263 (2012: 8,471,693)

The dilutive weighted average number of shares in issue during the year was 10,472,228 (2012: 9,468,074)

 

END

 

 

FR FEMFIFFDSEDS