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Oxeco PLC (OXE)

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Friday 23 October, 2009

Oxeco PLC

Interim financial report

RNS Number : 2541B
Oxeco PLC
23 October 2009
 



23 October 2009


Oxeco Plc (the "Company" or the "Group")


Interim financial report for the six months ended 31 July 2009


Chairman's Statement


Oxeco Plc is a holding and management company which was established with a stated strategy of seeking investments in or acquiring assets, businesses or companies in the technology and science sectors. The Company currently has one subsidiary, Oxray Ltd ("Oxray"), which was acquired in June 2007 as a start up business which aimed to become a leading provider of molecular structure determination services to both industry and academic institutions.  


By early this year Oxray had substantially completed the development of its novel X-ray crystallography structure determination software but the results of marketing efforts to establish a solid customer base had been disappointing. Also, Oxray had not been able to strengthen and develop its product service offering through bolt-on acquisitions in this field as originally envisaged in June 2007. The Directors therefore undertook a review of the Oxray business and concluded that this was not a market to which the Company intended to commit further significant resource. 

Subsequent efforts to secure a commercial exit from this business were not successful and a decision was taken to stop any further investment in Oxray with an emphasis on preserving the Group's cash. Oxray has now become a dormant subsidiary whilst retaining control of the underlying intellectual property and its results for the period from 1 February 2009 have been classified within discontinued operations.
 

The unaudited consolidated loss before tax for the Group in the six months to 31 July 2009 amounted to £143,000, including a loss after tax from the discontinued Oxray activities of £83,000, compared to a consolidated loss of £102,000 for the comparable six months to 31 July 2008. Consolidated net assets at 31 July 2009 amounted to £2.38 million including cash balances of £2.42 million versus net assets of £2.52 million and cash balances of £2.53 million at the 31 January 2009.


Oxeco benefits from a solid balance sheet position whilst running a low cost base. Your Directors are continuing to evaluate a range of new commercial and acquisition opportunities within the general science and technology sector and I am confident that we will be successful in exploiting an investment opportunity during the next twelve months.  





Michael Bretherton

Executive Chairman











Contact:

Michael Bretherton   

Oxeco plc

www.oxecoplc.com

 

+44 (0) 207099 7266

 RayZimmerman/Jonathan Evans   

ZAI Corporate Finance  Ltd


+44 (0) 207 060 1760


 +44 (0) 207099 7266


OXECO PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS TO 31 JULY 2009



Notes

Six months to 
31 July

2009

(Unaudited)

Six months to 
31 July

2008

(Unaudited)

Year to 

31 January

2009

(Audited)



£000

£000

£000

Continuing operations





Revenue


-

6

18






Administrative expenses


(66)

(188)

(376)

Impairment of goodwill


-

-

(2,120)

Operating Loss


(66)

(182)

(2,478)

Interest receivable


6

77

127

Loss before tax


(60)

(105)

(2,351)

Taxation

2

-

3

3

Loss for the period from continuing operations


(60)

(102)

(2,348)

Loss after tax from discontinued operations

5

(83)

-

-

Loss for the period


(143)

(102)

(2,348)

Attributable to:





Equity holders of the parent


(143)

(102)

(2,348)

Earnings per share
Basic and Diluted - post impairment of goodwill

3

(0.02)p

(0.02)p

(0.39)p

Basic and Diluted from continuing operations - post impairment of goodwill

3

(0.01)p

(0.02)p

(0.39)p

Basic and Diluted from continuing operations - pre impairment of goodwill

3

(0.01)p

(0.02)p

(0.04)p




OXECO PLC

CONDENSED CONSOLIDATED CHANGES IN EQUITY

FOR THE SIX MONTHS TO 31 JULY 2009




Attributable to the equity holders of the parent


Share 
Capital 
£000

Share
 Premium
£000

Revenue Reserve

 £000

Total 
Equity 
£000

At 31 January 2008

600

4,333

(63)

4,870

Loss for the period

-

-

(102)

(102)

At 31 July 2008

600

4,333

(165)

4,768

Loss for the period

-

-

(2,246)

(2,246)

At 31 January 2009

600

4,333

(2,411)

2,522

Loss for the period

-

-

(143)

(143)

At 31 July 2009

600

4,333

(2,554)

2,379


OXECO PLC
CONDENSED CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2009

          


Notes

31 July 

2009

31 July 

2008

31 January 2009



(Unaudited)

(Unaudited)

(Audited)



£000

£000

£000

ASSETS

Non-current assets





Property, plant and equipment


-

1

2

Intangible assets - goodwill


-

2,120

-

Total non-current assets


-

2,121

2






Current assets





Trade and other receivables


18

38

28

Cash and cash equivalents


2,416

2,641

2,534

Total current assets


2,434

2,679

2,562






TOTAL ASSETS


2,434

4,800

2,564






LIABILITIES





Current Liabilities





Trade and other payables


(55)

(30)

(42)

Current taxation


-

(2)

-

TOTAL LIABILITIES


(55)

(32)

(42)






NET ASSETS


2,379

4,768

2,522






EQUITY





Attributable to equity holders of the parent





Share capital

4

600

600

600

Share premium


4,333

4,333

4,333

Revenue reserve


(2,554)

(165)

(2,411)

TOTAL EQUITY SHAREHOLDERS' FUNDS


2,379

4,768

2,522


Approved by the Board and authorised for issue on 23 October 2009.



M A Bretherton

Executive Chairman        



OXECO PLC

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 JULY 2009



Six months to 

31 July 

2009

Six months to 

31 July 

2008

Year to

31 January 2008


(Unaudited)

(Unaudited)

(Audited)


£000

£000

£000

OPERATING ACTIVITIES




Operating loss from continuing operations

(66)

(182)

(2,478)

Loss before tax from discontinued operations

(83)

-

-

Depreciation of property, plant and equipment

2

1

1

Impairment of goodwill

-

-

2,120

Decrease/(increase) in trade and other receivables

10

(9)

1

Increase/(decrease) in trade and other payables

13

(7)

4

Tax paid

-

-

(2)

Net cash outflow from operations

(124)

(197)

(354)





INVESTING ACTIVITIES




Interest received

6

77

127

Net cash inflow from investing activities

6

77

127





DECREASE IN CASH AND CASH EQUIVALENTS

(118)

(120)

(227)

Cash and cash equivalents at start of period

2,534

2,761

2,761

CASH AND CASH EQUIVALENTS 
AT END OF PERIOD

2,416

2,641

2,534




OXECO PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENTS 

FOR THE SIX MONTHS ENDED 31 JULY 2009


1) SIGNIFICANT ACCOUNTING POLICIES


Basis of preparation


The interim financial statements of Oxeco Plc are unaudited condensed consolidated financial statements for the six months to 31 July 2009. These include unaudited comparatives for the six months to 31 July 2008 together with audited comparatives for the year to 31 January 2009.


The condensed consolidated financial statements have been prepared under the historic cost convention in accordance with International Financial Reporting Standards as adopted by the European Union and incorporate the financials of Oxeco Plc for the period and its subsidiary undertaking from the date of acquisition.


The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 January 2009.


The condensed consolidated financial statements do not constitute statutory accounts. The statutory accounts for the year to 31 January 2009 have been reported on by the Company's auditors and have been filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985.



2) TAXATION


The accrued tax charge for the six month period is based on an estimated effective tax rate of nil, after allowance for utilisation of tax losses brought forward in subsidiaries, (period to 31 July 2008: effective tax rate nil, period to 31 January 2009: effective tax rate nil).



3) LOSS PER SHARE



Six months to 31 July 2009

Six months to 31 July 2008

Year to 31 January 2009


(Unaudited)

(Unaudited)

(Audited)

Post impairment of goodwill

£'000

£'000

£'000

Profit/(loss) for the period represented by:




Continuing operations

(60)

(102)

(2,348)

Discontinued operations

(83)

-

-

Total

(143)

(102)

(2,348)

Weighted average number of shares

Number

Number

Number

Weighted average number of shares in issue during the period

600,000

600,000

600,000

Earnings per share




Basic and diluted on profit/(loss) for period

(0.02)p

(0.02)p

(0.39)p

Basic and diluted on profit/(loss) for period from continuing operations

(0.01)p

(0.02)p

(0.39)p



Six months to 31 July 2009

Six months to 31 July 2008

Year to 31 January 2009


(Unaudited)

(Unaudited)

(Audited)

Pre impairment of goodwill

£'000

£'000

£'000

Profit/(loss) for the period represented by:




Continuing operations

(60)

(102)

(228)

Discontinued operations

(83)

-

-

Total

(143)

(102)

(228)

Weighted average number of shares

Number

Number

Number

Weighted average number of shares in issue during the period

600,000

600,000

600,000

Earnings per share




Basic and diluted on profit/(loss) for period

(0.02)p

(0.02)p

(0.04)p

Basic and diluted on profit/(loss) for period from continuing operations

(0.01)p

(0.02)p

(0.04)p




4) SHARE CAPITAL

Number

£'000

Authorised ordinary shares of 1p:






At 31 July 2009, 31 January 2009 and 31 July 2008

1,000,000,000

1,000




Allotted, issued and fully paid ordinary shares of 1p:






At 31 July 2009, 31 January 2009 and 31 July 2008

600,000,000

600



  5) CLOSURE OF SUBSIDIARY BUSINESS

In June 2007 the Company acquired 100 per cent. of the issued share capital in Oxray Limited, a start up business that aimed to became a leading provider of molecular structure determination services. By early this year Oxray had substantially completed the development of its novel X-ray crystallography structure determination software but the results of marketing efforts to establish a solid customer base had been disappointing. Also, Oxray had not been able to strengthen and develop its product service offering through bolt-on acquisitions in this field as originally envisaged in June 2007.

The Company's investment in Oxray was written down to nil in its Financial Statements for the year ended 31 January 2009 as released on 17 April 2009. Subsequent efforts to secure a commercial exit from the Oxray business were not successful and the Directors therefore concluded in July 2009 that the most prudent course of action in the current economic climate was to stop any further investment in Oxray with an emphasis on preserving the Group's cash. Oxray has now become a dormant subsidiary whilst retaining control of the underlying intellectual property ("IP"). In addition, the Company has transferred an equity stake of 15 per cent. in this subsidiary to Oxray's former Commercial Manager, Richard Cooper, as an incentive to help potentially realise some future value from the IP.

The results of Oxray for the period from 1 February 2009 have been classified within discontinued operations in the consolidated financial statements and comprise revenue of £12,000 with related loss after tax of £83,000.


6) RELATED PARTY TRANSACTIONS


During the period the Company entered into the following transactions with Ora Capital Limited (formerly Ora Capital Partners Plc) which as at 31 July 2009 held 45.25% of the Company's issued share capital.



Six months to 

31 July

 2009

Six months to 

31 July 

2008

Year to

31 January 2009


(Unaudited)

(Unaudited)

(Audited)


£000

£000

£000

Management consultancy fees charged by ORA 

8

6

12


During the period the Company's wholly owned subsidiary, Oxray Ltd, borrowed £73,000 (31 July 2008: £nil) from the Company for working capital purposes. The loan is non-interest bearing, is repayable on demand and the outstanding balance at 31 July 2009 was £373,000 (31 July 2008: £200,000), however a provision of £300,000 was made against this loan in the year to 31 January 2009 and a further £73,000 provision made in the half year to 31 July 2009.

    

7) INTERIM FINANCIAL REPORT


A copy of this interim report will be distributed to shareholders and is also available on the Company's website at www.oxecoplc.com.



This information is provided by RNS
The company news service from the London Stock Exchange
 
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