Half Yearly Report

RNS Number : 6254T

ValiRx PLC

30 September 2010

 



ValiRx plc

Unaudited interim results for the six months ended 30 June 2010

30 September 2010, London. ValiRx plc (AIM: VAL) ('ValiRx' or 'the Company") the cancer therapeutics and diagnostics company, announces its unaudited interim results for the six months ended 30 June 2010.

Highlights

• Successfully continued GeneICE preclinical development with Eurostars grant

• Secured funding and partnership agreement for personalised medicine companion diagnostic development

• Raised additional £500k before expenses through an equity placing

• Concluded sales and distribution licence agreements for the SELFCheck range of products

• Finalised the analytical validation of HPV prototype kit and started the clinical sample validation

Dr Satu Vainikka, Chief Executive, commented that:

"We have continued to make progress with our development programmes: GeneICE, Val201 hormonal related cancer therapeutics and our HPV diagnostics. During the period we raised additional funds and continued being funded by the Eurostars grant.  The Company is focusing on its core development programmes and on revenue generation. Our trading platform, Valimedix, has concluded several distribution agreements and has expanded from Europe to North America."

"Overall, the healthcare sector continues moving forward. The personalised medicine approach is increasingly required within the marketplace and we believe that ValiRx is well placed to deliver better and targeted therapeutics and diagnostics to more safely and effectively meet the needs of clinicians and cancer patients."  

Enquiries:

ValiRx plc
Dr. Satu Vainikka	Tel: [phone]
	www.ValiRx.com
WH Ireland Limited - Nominated Adviser
Robin Gwyn	Tel: [phone]
Hybridan LLP - Broker
Claire Noyce	Tel: [phone]
Peckwater PR
Tarquin Edwards	Tel: [phone]
	[e-mail]

Chairman's statement

Strategic overview

I am pleased to report that during the period under review we continued to make solid progress on our therapeutic compounds to bring these closer to first in-human clinical trials. In particular it should be noted that all milestones associated with the GeneICE Eurostars programme have been reached on time, which is resulting in the Company being able to accelerate GeneICE development. Also the progress and recent licensing of the compound (Val201) from Cancer Research Technology is of significant importance to the Company's development.  

The Company' external spend on research & development in the six months to 30 June 2010 was £44k (2009 £51k). Administrative expenses for the six months were £336k (2009: £717k). This reduction in administrative costs resulted from a significant and sustained effort to reduce overhead and salary costs while maintaining R&D activity. The group reported a loss after tax of £293k (2009: £681k), in line with the Board's expectation and, as at 30 June 2010, had cash reserves of £149k (2009: £336k) and generated revenues of £64k (2009: nil). 

The Group completed an equity financing in April 2010, raising £500k before expenses. Since the period-end we have entered into an agreement for the sale of our wholly-owned Belgium subsidiary ValiBio SA ("ValiBio") to Singapore Volition Pte. Limited for US $ 1,000,000, of which $400k will be received in staged cash payments, with the balance in shares.  The agreement is conditional upon the receipt of the first instalment of the cash consideration and is expected to be completed in the near future.

 While we have substantially reduced our exposure to diagnostic development costs, the Company continues to retain its interest in this area through companion diagnostics for applications alongside our anti-cancer therapies.

 As a result of the disposal of ValiBio, the group's operating costs have been substantially reduced and ValiRx is now a leaner business with the main focus on moving forward our anti-cancer therapeutics, which continue to show potential in pre-clinical studies to drive value.

The Directors believe that the divestment of ValiBio together with grants from Eurostars and other incomes provide adequate working capital to take our therapeutics to the next stage of development.

N Thorniley (Chairman)

30 September 2010

Consolidated statement of comprehensive income

For the six months ended 30 June 2010

			Six months ended		Six months ended		Year ended
		Notes	30 June		30 June		31 December
			2010		2009		2009
			(unaudited)		(unaudited)		(audited)
			£		£		£
Revenue			64,474		-		29,326
Cost of sales			(20,569)		-		(2,968)
Gross profit			43,905		-		26,358
Administrative expenses			(335,560)		(716,533)		(1,389,010)
Operating loss			(291,655)		(716,533)		(1,362,652)
Amounts written off investments			-		-		(240,737)
Loss before interest			(291,655)		(716,533)		(1,603,389)
Finance income			1		18		55
Finance costs			(1,264)		(863)		(3,180)
Loss before taxation			(292,918)		(717,378)		(1,606,514)
Taxation		3	-		36,118		163,423
Loss after taxation and total comprehensive loss for the period			(292,918)		(681,260)		(1,443,091)
Loss per share - basic and diluted		4	(0.13)p		(0.67)p		(1.14)p

Consolidated statement of changes in equity

For the six months ended 30 June 2010

		Share capital		Share premium		Retained earnings		Merger reserve		Share option reserve		Reverse acquisition reserve		Total
		£		£		£		£		£		£		£
Unaudited
Balance at 1 January 2010		4,450,368		71,118		(4,864,499)		637,500		10,447		602,413		907,347
Loss for the period		-		-		(292,918)		-		-		-		(292,918)
Issue of shares		226,571		446,721		-		-		-		-		673,292
Expenses on issue of shares		-		(42,965)		-		-		-		-		(42,965)
Share based payment		-		-		-		-		6,594		-		6,594
Balance at 30 June 2010		4,676,939		474,874		(5,157,417)		637,500		17,041		602,413		1,251,350
Unaudited
Balance at 1 January 2009		3,479,986		71,120		(3,421,408)		637,500		2,801		602,413		1,372,412
Loss for the period		-		-		(681,260)		-		-		-		(681,260)
Issue of shares		970,382		34,235		-		-		-		-		1,004,617
Expenses on issue of shares		-		(62,095)		-		-		-		-		(62,095)
Balance at 30 June 2009		4,450,368		43,260		(4,102,668)		637,500		2,801		602,413		1,633,674
Audited
Balance at 1 January 2009		3,479,986		71,120		(3,421,408)		637,500		2,801		602,413		1,372,412
Loss for the period		-		-		(1,443,091)		-		-		-		(1,443,091)
Issue of shares		970,382		(2)		-		-		-		-		970,380
Share based payment		-		-		-		-		7,646		-		7,646
Balance at 31 December 2009		4,450,368		71,118		(4,864,499)		637,500		10,447		602,413		907,347

Consolidated statement of financial position

As at 30 June 2010

			30 June				31 December
			2010		2009		2009
			(unaudited)		(unaudited)		(audited)
			£		£		£
ASSETS
Non current assets
Intangible assets			1,476,950		1,433,782		1,466,297
Property, plant and equipment			8,535		8,503		8,039
Investments			-		240,737		-
			1,485,485		1,683,022		1,474,336
Current assets
Stock			9,684		-		15,659
Trade and other receivables			106,674		50,516		159,879
Cash and cash equivalents			148,997		336,189		15,911
			265,355		386,705		191,449
TOTAL ASSETS			1,750,840		2,069,727		1,665,785
LIABILITIES
Current liabilities
Borrowings			-		(704)		(46,184)
Trade and other payables			(338,490)		(433,946)		(712,254)
			(338,490)		(434,650)		(758,438)
Non-current liabilities
Borrowings			-		(1,403)		-
Other payables			(161,000)		-		-
			(499,490)		(436,053)		(758,438)
NET ASSETS			1,251,350		1,633,674		907,347
SHAREHOLDERS' EQUITY
Share capital			4,676,939		4,450,368		4,450,368
Share premium account			474,874		43,260		71,118
Merger reserve			637,500		637,500		637,500
Reverse acquisition reserve			602,413		602,413		602,413
Share option reserve			17,041		2,801		10,447
Retained earnings			(5,157,417)		(4,102,668)		(4,864,499)
Total shareholders' equity			1,251,350		1,633,674		907,347

Consolidated cash flow statement

For the six months ended 30 June 2010

			Six months ended		Six months ended		Year ended
			30 June		30 June		31 December
			2010		2009		2009
			(unaudited)		(unaudited)		(audited)
			£		£		£
Operating activities
Operating loss			(291,655)		(716,533)		(1,362,652)
Depreciation of tangible assets			2,612		2,622		5,148
Amortisation of intangible assets			11,298		8,400		20,422
Decrease/(increase) in stock			5,975		-		(15,659)
Decrease in debtors			53,205		43,643		3,885
(Decrease)/increase in creditors within one year			(212,764)		67,783		323,404
Other non-cash movement			168		649		411
Share option charge			6,594		-		7,646
Cash outflows from operating activities			(424,567)		(593,436)		(1,017,395)
Taxation			-		36,118		93,818
Investing activities
Interest received			1		18		55
Interest paid			(1,264)		(863)		(3,180)
Payments to acquire intangible assets			(21,951)		(2,165)		(65,512)
Payments to acquire tangible assets			(3,276)		(20,975)		(3,990)
Net cash used in investing activities			(26,490)		(23,985)		(72,627)
Financing activities
Issue of ordinary share capital			673,292		980,999		970,382
Expenses on issue of shares			(42,965)		(62,095)		(2)
Capital element of hire purchase contracts			(1,615)		(225)		(1,647)
Net cash generated from financing activities			628,712		918,679		968,733
Net increase/(decrease) in cash and cash equivalents			177,655		337,376		(27,471)
Cash and cash equivalents at start of period			(28,658)		(1,187)		(1,187)
Cash and cash equivalents at end of period			148,997		336,189		(28,658)

Notes to the interim financial statements

1. General information

ValiRx Plc is a company incorporated in the United Kingdom, which is listed on the AIM. The address of its registered office is 24 Greville Street, London EC1N 8SS.

2. Financial information

The interim consolidated financial information for the six months ended 30 June 2010 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The Group's statutory accounts for the year ended 31 December 2009 have been delivered to the Registrar of Companies. The report of the independent auditors on those financial statements was unqualified and did not contain a statement under Sections 498 (2) or (3) of the Companies Act 2006.

The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS and under the historical cost convention. The accounting policies applied in preparing the interim financial information are consistent with those set out in the statutory accounts of the Company for the year ended 31 December 2009.

The interim consolidated financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the group operates.

3. Taxation

		Six months ended		Six months ended		Year ended
		30 June		30 June		31 December
		2010		2009		2009
		(unaudited)		(unaudited)		(audited)
		£		£		£
United Kingdom corporation tax at 28%		-		-		-
Current period - R & D Tax credit		-		36,118		69,605
Prior period - R & D Tax credit		-		-		93,818
Tax credit		-		36,118		163,423

4. Loss per ordinary shares

The loss and number of shares used in the calculation of loss per share are as follows:

		Six months ended		Six months ended		Year ended
		30 June		30 June		31 December
		2010		2009		2009
		(unaudited)		(unaudited)		(audited)
Basic:
Loss for the financial period		292,918		681,260		1,443,091
Weighted average number of shares		226,497,358		102,299,837		127,071,384
Loss per share		0.13p		0.67p		1.14p

There was no dilutive effect from the share options outstanding during the period.

5. Dividends

The directors do not propose to declare a dividend in respect of the period.

6. Share capital

		30 June 2010					30 June 2009
		Number			£		Number		£
Authorised		(unaudited)			(unaudited)		(unaudited)		(unaudited)
Ordinary shares of 0.1p each		428,108,751			428,109		-		-
Ordinary shares of 1p each		-			-		428,108,175		4,281,082
Deferred shares of 0.9p each		157,945,030			1,421,505		-		-
Deferred shares of 5p each		58,378,370			2,918,919		28,378,365		1,418,918
					4,768,533				5,700,000
Allotted, called up and fully paid
Ordinary shares of 0.1p each		336,516,457			336,516		-		-
Ordinary shares of 1p each		-			-		153,145,035		1,531,450
Deferred shares of 0.9p each		157,945,030			1,421,505		-		-
Deferred shares of 5p each		58,378,370			2,918,918		58,378,370		2,918,918
					4,676,939				4,450,368
		31 December 2009
		Number		£
Authorised		(unaudited)		(unaudited)
Ordinary shares of 1p each		218,108,175		2,181,082
Ordinary shares of 6p each		-		-
Deferred shares of 5p each		58,378,365		2,918,918
				5,100,000
Allotted, called up and fully paid
Ordinary shares of 1p each		153,145,030		1,531,450
Ordinary shares of 6p each		-		-
Deferred shares of 5p each		58,378,365		2,918,918
				4,450,368

On 2 January 2010, the Company issued 100,000 ordinary shares of 1p at 1p per share to satisfy a liability of £1,000.

On 13 January 2010, the Company issued 200,000 ordinary shares of 1p each at 1.13p per share to satisfy a liability of £2,260.

On 16 February 2010, the Company issued 900,000 ordinary shares of 1p each at 1p per share to satisfy a liability of £9,000.

On 5 March 2010, the Company issued 3,600,000 ordinary shares of 1p each at 1p per share to satisfy a liability of £36,000.

On 21 April 2010 each issued ordinary share of 1p each was sub-divided and reclassified as one ordinary share of 0.1p each and one deferred share of 0.9p each.

On the same day, the authorised share capital was replaced with the authorised share capital as shown above.

On 21 April 2010, the Company raised £500,000, before expenses, by placing 142,857,143 new ordinary shares of 0.1p each at 0.35p per share.

On 21 April 2010, the Company issued 35,714,284 new ordinary shares of 0.1p per share to satisfy a liability of £125,000 due to the directors.

The deferred shares effectively have no rights or value.

7. Copies of interim results

Copies of the interim results can be obtained from the website www.valirx.com. From this site you may access our financial reports and presentations, recent press releases and details about the Company and its operations.

 

END

 

 

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