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ViaLogy PLC (VIY)

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Monday 02 December, 2013

ViaLogy PLC

Half Yearly Report

RNS Number : 3941U
ViaLogy PLC
02 December 2013
 



 

ViaLogy PLC ("ViaLogy" or "the Company")

 

Interim results for the six months ended 30 September 2013

 

 

 

Chairman's statement for the six months ended 30 September 2013

 

The Interim Report covers the six-month period to 30 September 2013. The figures show a loss for the period of £1,130,356 which includes a non-cash loss of £239,627 for amortisation and depreciation. The amortisation charges relate to the value of ViaLogy's Intellectual Property and associated research and development which is amortised over a period of six years. The cash outflow from operations during the period was £983,156.

 

This six month period in the company's history has been focussed on consolidating ViaLogy's commercial arrangements with existing clients, exploring new business opportunities for QuantumRD and establishing a significant working relationship with one of the biggest and most important companies in the global oil and gas sector, CGG. Among our achievements have been:

 

·        The signing of a Business and Technical Collaboration Agreement with CGG (NYSE: CGG, Euronext: CGG: PA, www.cgg.com) of France, one of the world's largest geosciences companies. It provides ViaLogy with global sales and services locations, access to CGG customers, assistance in scaling ViaLogy's QuantumRD technology to large geographical areas, and specialised high tech data processing to prepare seismic datasets for QuantumRD.

·        A new contract with our flagship client Chevron (www.chevron.com) expanding ViaLogy's work in the US Delaware Basin. Our task was to precisely map subsurface reservoirs for horizontal drilling that were well below the resolution of 3D seismic. This contract has been successfully completed.

·        Signing an important contract with a new client, a subsidiary of Singapore-based Gente Oil Global, Pte. Ltd., to apply QuantumRD seismic interpretation technology on Ecuadorian properties in the Oriente Basin. ViaLogy focussed on reservoir discovery, delineation, and development in Napo sandstone formations that have proven too complicated to understand through conventional interpretation. The contract was completed and results were delivered to Gente in September.

During the summer and autumn the Board has also spent a considerable time honing plans for the proposed radical restructuring of ViaLogy. The aim is to position the company so that it can achieve carefully planned technical and commercial expansion whilst maintaining long-term shareholder value.

 

Full details of the proposed restructuring can be found in the circular to shareholders dated 18 November 2013. A link to the circular can be found on the company website.  A General Meeting has been convened for Wednesday, December 4 2013 to seek shareholder support for the plans. Following the General Meeting it is the intention of the ViaLogy Board to recapitalise ViaLogy which is likely to entail the issue of new equity.

 

This is an ambitious and exciting   juncture in the company's history and I believe the time has come for the business to benefit from a younger pair of hands on the helm. I have therefore decided to step down as chairman and director of the company at the close of the meeting on the 4th of December. My fellow director, Peter Reynolds, has also decided to resign from the Board at this time to pursue his other business interests. We both take this opportunity to wish ViaLogy every success in the future. 

 

 

Terry Bond

Chairman

ViaLogy PLC

2 December 2013

 

 

Consolidated income statement for the six months ended 30 September 2013

 

 

 

Unaudited

Unaudited

Audited

 

 

6 months

6 months

Year to

 

 

to 30 Sep

to 30 Sep

to 31 Mar

 

Notes

2013

2012

2013

 

 

 

£

£

£

Revenue

2

61,569

84,691

257,681

Cost of  sales

 

126,030

273,115

555,156

 

 

--------

--------

--------

Gross loss

2

(64,461)

(188,424)

(297,475)

 

 

 

 

 

Share based payments

 

22,748

271,399

528,182

Depreciation and amortisation

 

239,627

1,611,829

2,203,657

Other administrative expenses

 

803,538

911,814

1,931,708

 

 

 

 

 

 

 

 

 

 

Total administrative expenses

 

1,065,913

2,795,042

4,663,547

 

 

--------

--------

--------

Loss from Operations

 

(1,130,374)

(2,983,466)

(4,961,022)

 

 

 

 

 

Finance income

 

18

180

2,014

 

 

--------

--------

--------

Loss for the period / year before  taxation

 

(1,130,356)

(2,983,286)

(4,959,008)

 

 

--------

--------

--------

 

 

 

 

 

Taxation

3

-

144,176

294,822

 

 

 

 

 

 

 

--------

--------

--------

Loss for the period / year attributable to equity holders of the parent

 

 

 

 

 

2

(1,130,356)

(2,839,110)

(4,664,186)

 

 

--------

--------

--------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

Basic  and diluted

4

(0.109)p

(0.316)p

(0.506)p

 

 

Consolidated statement of comprehensive income for the six months ended
 30 September 2013

 

 

 

Unaudited

Unaudited

Audited

 

 

6 months

6 months

year to

 

 

to 30 Sep

to 30 Sep

31 Mar

 

 

2013

2012

2013

 

 

£

£

£

Loss after taxation

 

(1,130,356)

(2,839,110)

(4,664,186)

 

Other comprehensive income

  Exchange differences on translating foreign operations

 

 

 

(31,035)

 

 

(10,759)

 

 

22,677

 

 

--------

--------

--------

Total other comprehensive (loss) / income for the period / year

 

(31,035)

(10,759)

22,677

 

 

--------

--------

--------

Total comprehensive loss for the period / year attributable to the equity holders of the parent company

 

(1,161,391)

(2,849,869)

(4,641,509)

 

 

--------

--------

--------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of changes in equity for the six months ended 30 September 2013

 

Unaudited

Share

Share

Warrant

Foreign

Retained

Total

 

capital

premium

reserve

exchange

deficit

 

 

 

 

 

reserve

 

 

 

 

 

 

 

 

 

 

At 1 April 2013

10,391,069

22,733,906

225,000

1,637,611

(32,354,126)

2,633,460

 

 

 

 

 

 

 

Total loss for the year

-

-

-

-

(1,130,356)

(1,130,356)

Other comprehensive income

-

-

-

(31,035)

-

(31,035)

Issue of shares

5,333

1,333

-

-

-

6,666

Warrant exercise

-

3,200

(3,200)

-

-

-

Share options expense

-

-

-

-

22,748

22,748

 

 

 

-

 

 

 

 

--------

--------

--------

--------

--------

--------

Balance at 30 September 2013

10,396,402

22,738,439

221,800

1,606,576

(33,461,734)

1,501,483

 

--------

--------

--------

--------

--------

--------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

Share

Warrant

Foreign

Retained

Total

 

capital

premium

reserve

exchange

deficit

 

 

 

 

 

 

 

 

 

 

 

 

reserve

 

 

 

 

 

 

 

 

 

 

At 1 April 2012

8,519,551

21,475,505

-

1,614,934

(28,218,122)

3,391,868

 

 

 

 

 

 

 

Total loss for the year

-

-

-

-

(4,664,186)

(4,664,186)

Other comprehensive income

-

-

-

22,677

-

22,677

 

 

 

 

 

 

 

Issue of shares

1,871,518

1,363,151

-

-

-

3,234,669

Share issue expenses

-

(104,750)

-

-

-

(104,750)

Share options expense

-

-

-

-

528,182

528,182

Issue of warrants

-

-

225,000

-

-

225,000

 

 

 

 

 

 

 

 

--------

--------

--------

--------

--------

--------

Balance at 31 March 2013

10,391,069

22,733,906

225,000

1,637,611

(32,354,126)

2,633,460

 

--------

--------

--------

--------

--------

--------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of financial position at 30 September 2013

 

 

 

 

 

 

 

 

Unaudited

Unaudited

Audited

 

 

30 Sep

30 Sep

31 Mar

 

 

2013

2012

2013

 

Notes

£

£

£

Assets

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

   Property, plant and equipment

 

328,496

374,268

359,165

   Intangible assets

 

882,087

1,390,785

1,022,054

 

 

 

 

 

 

 

--------

--------

--------

 

 

1,210,583

1,765,053

1,381,219

 

 

--------

--------

--------

Current assets

 

 

 

 

   Trade and other receivables

 

107,799

180,288

153,876

   Cash and cash equivalents

 

307,047

1,150,073

1,304,729

 

 

--------

--------

--------

 

 

414,846

1,330,361

1,458,605

 

 

--------

--------

--------

Total Assets

2

1,625,429

3,095,414

2,839,824

 

 

--------

--------

--------

Liabilities

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

   Trade and other payables

 

123,946

138,010

206,364

 

 

 

 

 

Non-current liabilities

 

 

 

 

   Deferred tax liability

3

-

141,037

-

 

 

--------

--------

--------

Total liabilities

2

123,946

279,047

206,364

 

 

 

 

 

Capital and reserves attributable to equity

 

 

 

 

holders of the Company

 

 

 

 

   Share capital

 

10,396,402

9,266,069

10,391,069

   Share premium

 

22,738,439

22,731,956

22,733,906

   Warrant reserve

 

221,800

-

225,000

   Foreign exchange  reserve

 

1,606,576

1,604,175

1,637,611

   Retained deficit

 

(33,461,734)

(30,785,833)

(32,354,126)

 

 

--------

--------

--------

Shareholders' funds

 

1,501,483

2,816,367

2,633,460

 

 

--------

--------

--------

Total equity and liabilities

 

1,625,429

3,095,414

2,839,824

 

 

--------

--------

--------

Consolidated statement of cash flows for six months ended 30 September 2013

 

 

 

Unaudited

Unaudited

Audited

 

 

30 Sep

30 Sep

31 Mar

 

 

2013

2012

2013

 

 

£

£

£

Cash flows from operating activities

 

 

 

 

  Loss  from operations before tax

 

(1,130,356)

(2,983,286)

(4,959,008)

 

 

 

 

 

  Adjustments for :-

 

 

 

 

          Finance income

 

(18)

(180)

(2,014)

          Depreciation

 

26,989

36,640

77,273

          Amortisation

 

212,638

1,575,189

2,216,384

          Share option expense

 

22,748

271,399

528,183

          Foreign exchange movements

 

4,201

12,729

22,677

          Director's fees prepaid

 

-

82,968

27,656

 

 

--------

--------

--------

Cashflows used in operating activities before changes in working capital

 

(863,798)

(1,004,541)

(2,178,849)

 

 

 

 

 

  Decrease / (increase)  in trade and other  receivables

 

46,077

(106,125)

3,255

 (Decrease) / increase in trade and other payables

 

(82,418)

(66,498)

1,856

 

 

 

 

 

 

 

--------

--------

--------

Net cash flows used in operating activities

 

(900,139)

(1,177,164)

(2,173,738)

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

   Internally generated  intangible asset

 

(84,985)

(191,671)

(341,222)

   Purchase of property, plant and equipment

 

(4,680)

(21,284)

(25,361)

  Interest received

 

18

180

2,014

 

 

--------

--------

--------

 

 

(89,683)

(212,775)

(364,569)

Cash flows from financing activities

 

 

 

 

  

 

 

 

 

    Cash inflow from issue of new shares

 

-

2,045,000

3,459,669

    Share issue costs

 

-

(50,450)

(104,750)

    Cash inflow from exercise of options and warrants   

 

6,666

8,419

-

 

 

--------

--------

--------

 

 

6,666

2,002,969

3,354,919

 

 

 

 

 

(Decrease) / increase in cash and cash equivalents

 

(983,156)

613,030

816,612

 

 

 

 

 

  Foreign exchange differences on translation of cash and cash equivalents.

 

(14,526)

(18,324)

(67,250)

  Cash and cash equivalents at beginning of  period /year

 

1,304,729

555,367

555,367

 

 

--------

--------

--------

 

 

 

 

 

Cash and cash equivalents at end of period / year

 

307,047

1,150,073

1,304,729

 

 

--------

--------

--------

 

 

 

Notes forming part of the unaudited consolidated accounts for the six months ended 30 September 2013

 

1     Accounting policies

Basis of preparation

The interim financial information has been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial information for the year ended 31 March 2014.

 

The interim financial information for the period 1 April 2013 to 30 September 2013 is unaudited.  In the opinion of the Directors the interim financial information for the period presents fairly the financial position, results from operations and cash flows for the period in conformity with the generally accepted accounting principles consistently applied.  The interim financial information incorporates comparative figures for the interim period 1 April 2012 to 30 September 2012 and the audited financial year to 31 March 2013.The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. The comparatives for the full year ended 31 March 2013 are not the Company's full statutory accounts for that year.  A copy of the statutory accounts for that year has been delivered to the Registrar of Companies.  The auditor's report on those accounts was unqualified, but did include references to any matters to which the auditor drew attention by way of emphasis in respect of going concern, without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

 

Going concern

 

As noted in the circular send to shareholders on 18 November 2013 for the General Meeting on 4th December 2013, the Board are proposing to restructure the company. The net result of the restructuring will be that working capital requirements will be greatly reduced from 1 January 2014.  Following the General Meeting, it is the intention of the newly constituted ViaLogy Board to recapitalise ViaLogy which is likely to entail the issue of new equity.  Whilst the Directors are confident that additional funding can be raised to meet the Group's development and working capital needs, and the Group has been successful in the past in this regard, a significant uncertainty exists given the absence of committed funding at the date of approval of these financial statements.

 

The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.

 

2     Segmental analysis

The Group has two reportable segments:

·    Head office - this segment is the head office of the Group.

·    Operations - this segment is involved in sales and  technology development in the USA.

The operating results of these segments are regularly reviewed by the Group's chief operating decision maker in order to make decisions about the allocation of resources and assess their performance.

30 September 2013  Reportable segment analysis - unaudited

 

 

 

 

 

 

 

Operations

Head Office

Consolidated

 

 

£

£

£

Revenue from external customers

 

61,569

-

61,569

 

 

--------

--------

--------

Gross loss

 

(64,461)

-

(64,461)

Finance income

 

-

18

18

 

 

--------

--------

--------

Loss for the period after taxation

 

(944,221)

(186,135)

(1,130,356)

Segment assets

 

1,304,037

321,392

1,625,429

Segment liabilities

 

44,332

79,614

123,946

 

 

--------

--------

--------

Costs to acquire plant, property and equipment

 

4,680

-

4,680

Costs to acquire intangible assets

 

84,985

-

84,985

Depreciation and amortisation

 

239,477

150

239,627

Share based payments

 

18,364

4,384

22,748

 

 

--------

--------

--------

 

 

 

 

 

Year ended 31 March 2013 Reportable segment analysis - audited

 

 

Operations

Head Office

Consolidated

 

 

£

£

£

Revenue from external customers

 

257,681

-

257,681

 

 

--------

--------

--------

Gross loss

 

(297,475)

-

(297,475)

Finance income

 

-

2,014

2,014

Tax credit

 

294,822

-

294,822

 

 

--------

--------

--------

Loss for the year after taxation

 

(4,028,262)

(635,924)

(4,664,186)

 

 

 

 

 

Segment assets

 

1,559,043

1,280,781

2,839,824

Segment liabilities

 

128,012

78,352

206,364

 

 

--------

--------

--------

Costs to acquire plant, property and equipment

 

42,309

(16,948)

25,361

Costs to acquire intangible assets

 

341,222

-

341,222

Depreciation and amortisation

 

2,196,101

7,556

2,203,657

Share based payments charged

 

451,056

77,126

528,182

 

 

--------

--------

--------

 

 

 

 

 

All material non-current assets are owned by the USA subsidiary and are located in the USA.

3     Deferred Tax

 

 

 

Unaudited

Unaudited

 

 

 

Period to

Period to

 

 

 

30 September

30 September

 

 

 

2013

2012

 

 

 

£

£

 

 

 

 

 

At 1 April

 

 

-

285,242

 

 

 

 

 

Credit to the income statement for the six months to 30 September

 

 

-

(144,176)

Foreign exchange translation

 

 

-

(29)

 

 

 

--------

--------

At 30 September

 

 

-

141,037

 

 

 

--------

--------

 

 

 

 

 

Audited

 

 

 

 

Year ended

 

 

 

 

31 March 2013

 

 

 

 

£

 

 

 

 

 

 

At 1 April

 

 

285,242

 

 

 

 

 

 

Credit to the income statement for the year

 

 

(294,822)

 

Foreign exchange translation

 

 

9,580

 

 

 

 

--------

 

At 31 March

 

 

-

 

 

 

 

--------

 

 

Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 35%.

 

4     Loss per share

Basic

 

The calculation of loss per share is based on the loss for the period of £1,130,356 (2012 - loss £2,839,110, full year loss £4,664,186) and on 1,039,523,650, (2012 - 899,549,947, 2012 full year - 921,224,058) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

 

Diluted

 

Diluted loss per share dilutes the basic loss per share to take into account share options and warrants.  The calculation includes the weighted average number of ordinary shares that would have been issued on the conversion of all the dilutive share options and warrants into ordinary shares.  33,890,242 options (2012 - 106,020,272 options, 2012 full year 125,535,913 options) have been excluded from this calculation as this would reduce the loss per share.

 

5     Share capital -unaudited

    

 

Allotted, called up and fully paid

 

2013

2012

2013

2012

 

Number

Number

£

£

Ordinary Shares of 1p each

 

 

 

 

 

 

 

 

 

At 1 April 

1,039,106,911

851,955,130

10,391,069

8,519,551

Shares issued

-

74,363,637

-

743,637

Employee share options exercised

-

288,144

-

2,881

Warrants exercised

533,333

-

5,333

-

 

 

--------

--------

--------

--------

At 30 September

1,039,640,244

929,606,911

10,396,402

9,266,069

 

 

 

 

__________

__________

__________

__________

 

Year Ended 31 March 2013 Share capital - audited

 

 

 

 

 

 

 

 

Allotted, called up and fully paid

 

 

2013

2012

2013

2012

 

 

Number

Number

£

£

 

Ordinary shares of 1p each

 

 

 

 

 

 

 

 

 

 

 

At 1 April

851,955,130

734,102,725

8,519,551

7,341,027

 

Shares issued

187,151,781

117,852,405

1,871,518

1,178,524

 

 

 

 

 

 

 

 

--------

--------

--------

--------

 

At 31 March

1,039,106,911

851,955,130

10,391,069

8,519,551

 

 

__________

__________

__________

__________

6   Post Reporting date events

There are no post reporting date events.

 

For further information:

 

ViaLogy PLC

Terry Bond, Chairman - UK & Europe +44 (0) 1235 834 734

 

Nominated Advisor to ViaLogy PLC (Cantor Fitzgerald Europe)

Mark Percy / Catherine Leftley - Corporate Finance +44 (0) 207 894 7000


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