Interim Results
Oxford Catalysts Group PLC
11 September 2006
11th September 2006
OXFORD CATALYSTS GROUP PLC
('Oxford Catalysts' or 'the Company')
Interim Results for Period Ended 30th June 2006
Oxford Catalysts Group PLC, the leading catalyst innovator for clean fuels,
announces today its maiden set of interim results since its successful flotation
on the AIM market in April of this year.
Highlights
• Listed on AIM on 26th April 2006
• Raised ca. £14 million net of expenses
• Nine-month prototype development program with Proventec Plc, a provider
of specialist steam cleaning equipment
• Award of a £150,000 joint-grant from the Carbon Trust in partnership
with leading UK-based Solid Oxide Fuel Cell company (ca. £118,000 will
accrue to Oxford Catalysts)
• Over 25 non-disclosure / material transfer agreements in place enabling
active discussions with potential partners, including oil majors, oil
refiners, oil services companies, coal mining and processing, catalyst,
consumer electronics and fuel cell companies
• Achieved key technical milestone relating to continuous stop-start
cycling in hydrogen-on-demand technology
• First patent granted in Europe, second patent granted in South Africa;
all filings proceeding as expected
• On track to achieve recruitment target; new offices and laboratory being
fitted out
• Expenditure remains in line with budget: cash reserves managed prudently
Roy Lipski, Chief Executive of Oxford Catalysts, said:
'We have some very special technology, we have a first class team and a clear
and focussed strategy. During the period, Oxford Catalysts has made significant
progress in all areas of its strategy. We remain committed to continuing to
deliver on the milestones set out during our IPO, and we look forward to the
future with confidence.'
For further information, please contact:
Roy Lipski, CEO, Oxford Catalysts 07958 970 855
Megan MacIntyre, KBC Peel Hunt 020 7418 8900
Jonathon Brill, Billy Clegg, Financial Dynamics 020 7831 3113
Oxford Catalysts designs and develops specialty catalysts for the generation of
clean fuels from both conventional fossil fuels and certain renewable sources.
The Company has two key platform technologies resulting from some 19 years of
research at the University of Oxford's prestigious Wolfson Catalysis Centre. The
first platform is for a novel class of catalysts made from metal carbides, which
can match or exceed the benefits of traditional precious metal catalysts, at a
lower cost, for several key processes used in the petroleum and petrochemical
industries. The second, relates to a series of unique chemical reactions which
can be used to generate either hydrogen gas or high-temperature steam,
instantaneously, starting from room temperature, using a cheap and safe liquid
fuel alongside the Company's patented catalysts. Such unprecedented hydrogen or
steam on-demand has exciting potential applications in a broad range of markets,
from portable fuel cells, to motive power and stationary electricity generation.
Copies of this interim report will be sent to shareholders and will be available
at the Business Office of the Company, Wolfson College, Linton Road, Oxford, OX2
6UD and on the Company's website, www.oxfordcatalysts.com for one month free of
charge from 11th September 2006.
CHAIRMAN'S STATEMENT
Dr Pierre Jungels
It is with great pleasure that I make my first interim report as Chairman of
Oxford Catalysts Group PLC. The Company has made good progress in the first half
of 2006 and since its admission to AIM on 26th April of this year, when we
raised £15 million before expenses through a placing of 8,620,690 new shares.
Oxford Catalysts' business model is to license its technology for commercial
exploitation. The Company aims to enter into a relatively small number of key
co-development partnerships with leading manufacturers, producers or suppliers
in three main application areas: petroleum and petrochemical catalysts; hydrogen
production for fuel cells, and; high-temperature steam for a varierty of
markets.
I am pleased to report that we have experienced impressive growth in interest
from, and engagement with, potential partners. To date, we have entered into
over 25 non-disclosure or material transfer agreements, and we are in active
discussions with numerous companies over testing, and the potential
co-development and licensing of our technology. These include oil majors, oil
refiners, oil services companies, coal mining and processing, catalyst, consumer
electronics and fuel cell companies, as well as others.
I would also like to congratulate Dr Will Barton, our COO, for his recent
admission as a Fellow of The Royal Society of Chemistry, and separately, for his
appointment to the Council of The Chemical Industries Association. As well as
recognising Will's long and distinguished service to the chemical industry,
these appointments will help raise the profile of Oxford Catalysts within the
wider chemicals community.
Outlook
The Board looks to the future with confidence. Since the beginning of the year,
and significantly since the IPO in April, we have progressed on or are ahead of
plan in all three key areas of our strategy: commercialisation; technology
development, and; the protection and enhancement of our intellectual property.
These areas will continue to be the main focus of the Company's activities over
the next 6 months. I look forward to reporting further success in our year-end
results.
CHIEF EXECUTIVE'S STATEMENT
Roy Lipski
Oxford Catalysts has made excellent progress over the period since 31st December
2005, and since its flotation. We remain committed to continuing to deliver on
the milestones set out during our listing on the London Stock Exchange.
Commercialisation
Since the IPO, we have provided several catalyst samples for testing, including
samples to, amongst others, a leading global consumer electronics manufacturer
and an oil major (for hydrogen-on-demand and Fischer-Tropsch respectively).
Furthermore, we recently agreed a client-funded testing program with a large Far
Eastern company to explore a novel application of hydro-treatment (this
technology is still at an early stage of development).
In July 2006, we announced that we have progressed to a nine-month prototype
development program with Proventec Plc, a provider of specialist steam cleaning
equipment. This followed the successful completion of an evaluation phase of our
technology, pursuant to a contract signed in February 2006 which is worth up to
£100,000 to the Company and, more importantly, provides for the future licensing
of our technology to Proventec.
More recently, we announced the award of a £150,000 joint-grant from the Carbon
Trust, of which ca. £118,000 will accrue to the Company. The grant will support
the development of reforming catalysts and associated technologies for fuel
cells, based on the Company's metal carbide platform. Our partner in the
project, a leading UK-based Solid Oxide Fuel Cell ('SOFC') company, will
contribute its considerable expertise in fuel cell systems to define the
specification for the catalysts, as well as testing the technology as it is
developed.
I am confident that the high level of interest from, and engagement with,
potential partners will lead to further developments that we shall be able to
announce in due course.
Technical Development
I am pleased to report that we are making strong progress in the development of
our technology platforms, and are on, or ahead of, our schedule. We have
successfully achieved a key technical milestone relating to continuous
stop-start cycling in our hydrogen-on-demand technology. This was completed some
nine months ahead of plan and was achieved through catalyst improvement.
Separately, we have improved our method for the deposition of our catalyst
pre-curser, particularly for shaped supports. This approach, which we are
currently applying to our Fischer-Tropsch catalyst, will facilitate larger scale
testing of our catalysts.
Intellectual Property
We continue to make good progress protecting and enhancing our intellectual
property. During the period, the first of the patents licensed exclusively to us
from Isis Innovation Ltd (WO 03/002252 A1 - A Process for the Activation of a
Catalyst Comprising a Cobalt Compound and a Support) was granted in Europe, and
is progressing through final examination in the US. The second patent (WO 04/
000456 A2 - Catalyst) was granted in South Africa and has progressed to
examination in Japan and China; whilst the third patent (WO 05/075342 A1 -
Catalytic Reaction Between Methanol and a Peroxide) has recently entered
national phases.
The 4th and 5th patent filings, which relate to the extension of our
hydrogen-on-demand and high-temperature steam technologies, have been
consolidated under a single filing to be published later this year. We look
forward to sharing more information, in due course, concerning the significant
developments that this new patent represents.
People & Premises
Oxford Catalysts is making good progress in the identification and recruitment
of key personnel. Since the IPO, the Company has hired 5 research scientists and
a chemical engineer, to work on existing development and commercialisation
projects. We have been delighted by the high-calibre of candidates found and are
confident of having put in place the foundations of a world-class catalysis
team. We remain on track to achieve our recruitment target of 25 people by 4Q07,
which will include bolstering our business development team.
Finally, I am pleased to report that the Company has agreed on the location of
its new offices and laboratory. These will be at a business park in the Oxford
area, and will contain custom-fitted high specification facilities for the
development and testing of catalysts and small-scale devices. We anticipate
being fully installed in the new premises during the fourth quarter of the
current year.
Financials
In accordance with accounting standards, the Group is required to recognise a
fair value charge for executive share options. This charge, however, has no
effect on the Group's net assets or cash as at 30 June 2006. The total executive
share options charge to the profit and loss account for the period is £277,000.
Cash resources continue to be managed prudently. Cash reserves at period-end
were £14,313,000. Our current spend is in line with expectations and will rise
as the company enters the next stage of its development, with expenditure on
staff, premises, technical and business development increasing over the next six
months.
GROUP PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2006
Notes 6 months ended
30 June 2006
Unaudited
£000
Turnover 12
Administrative expenses - operational (231)
Administrative expenses - share based payments (FRS20) (277)
Other operating income 1
Operating loss (495)
Interest receivable and similar income 113
Loss on ordinary activities before taxation (382)
Taxation -
Loss on ordinary activities after taxation (382)
(Deficit) for the period £(382)
Loss per share
Basic 2 (0.99)p
Diluted 2 (0.99)p
The group has no recognised gains or losses other than as shown above.
GROUP BALANCE SHEET
AS AT 30 JUNE 2006
Notes Oxford Catalysts
Limited
As at As at
30 June 2006 31 December 2005
(Unaudited) (Audited)
£000 £000
FIXED ASSETS
Intangible assets 60 51
Tangible 36 -
96 51
CURRENT ASSETS
Debtors 83 51
Cash at bank and in hand 14,313 486
14,396 537
CREDITORS
Amounts falling due within one year (41) (110)
NET CURRENT ASSETS 14,355 427
NET ASSETS £14,451 £478
CAPITAL AND RESERVES
Called up share capital 5 385 -
Share premium account 5 13,662 625
Merger reserve 5 656 -
Profit and loss account 5 (252) (147)
EQUITY SHAREHOLDERS' FUNDS £14,451 £478
GROUP CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2006
Notes 6 months ended
30 June 2006
(Unaudited)
£000
3 Net cash outflow from operating activities (316)
Returns on investment and servicing of finance
Interest received 113
Capital expenditure and financial investment
Purchase of intangible fixed assets 10
Purchase of tangible fixed assets 38
(48)
Cash outflow before financing (251)
Financing
Issue of ordinary share capital 385
Share premium received on share issues 14,737
Preliminary set up costs (1,044)
4 Cash inflow from financing 14,078
Increase in cash £13,827
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2006
1. BASIS OF PREPARATION
Basis of preparation
These interim statements have been prepared on a consistent basis with the AIM
admission document dated 20 April 2006, subject to the changes in accounting
guidelines since that date.
These interim statements do not constitute statutory financial statements within
the meaning of Section 240 of the Companies Act 1985. Results for the six month
periods ended 30 June 2006 have not been audited. The Balance Sheet for the
period ended 31 December 2005 has been extracted from the statutory financial
statements of Oxford Catalysts Limited for the period to 31 December 2005 that
have been filed with the Registrar of Companies and upon which the auditors
reported without qualification.
Basis of consolidation
The consolidated accounts incorporate the financial statements of the Company
and all of its subsidiaries. In order to enable the successful flotation of the
Group, it was necessary to undertake a restructuring of the Group. As part of
the Group reconstruction, on 12 April 2006 Oxford Catalysts Group plc acquired,
in return for the issue of new ordinary share capital, the entire share capital
of Oxford Catalysts Limited. This acquisition has been accounted for as a merger
in line with the reporting requirements of Financial Reporting Standard No.6 '
Acquisitions and Mergers'. Therefore the Group financial statements have been
prepared as if the Group was in existence for the whole of the current and prior
years.
2. LOSS PER SHARE
6 months ended
30 June 2006
(Unaudited)
£'000
Basic and Diluted loss per share has been calculated on the loss of £(382)
The number of shares used was: 38,490,608
3. RECONCILIATION OF OPERATING LOSS TO NET CASH
OUTFLOW FROM OPERATING ACTIVITIES
£'000
Operating loss (495)
Depreciation charges 2
Amortisation charges 1
Increase in debtors (32)
Decrease in creditors (69)
Non-cash share-based payments (FRS20) 277
Net cash outflow from operating activities £(316)
4. RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET FUNDS
£'000
Increase in cash 13,827
Change in net funds resulting from cash flows 13,827
Net funds at 1 January 2006 486
Net funds at 30 June 2006 £14,313
5. CHANGES IN SHARE CAPITAL AND RESERVES
Called Up Profit &
Share Share Merger Loss
Capital Premium Reserve Account
£'000 £'000 £'000 £'000
Issued during the period to 30 June 2006 97 13,662
Arising on acquisition of Oxford Catalysts Limited 288 656 (147)
Loss for the period (382)
Employee share based payments (FRS20) 277
Balance carried forward £385 £13,662 £656 £(252)
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 10th January 2025
COMPANIES COVERED:
Latest directors dealings
- 2 days ago FRP Advisory Group
- 2 days ago Marks Electrical Group
- 2 days ago CLS Holdings
- 2 days ago QinetiQ Group
- 2 days ago Spectris