TIDMPEBI
RNS Number : 5168D
Port Erin Biopharma Investments Ltd
31 March 2014
Port Erin Biopharma Investments Limited
("Port Erin" or the "Company")
Interim Results for the six month period ending 31 December
2013
The Board of Port Erin, the AIM quoted company focussed on
investing in the biotechnology and biopharmaceutical sectors, is
pleased to announce its interim results for the six month period
ending 31 December 2013.
Financial Highlights
As at 31 December 2013
Profit GBP1,787,086
Earnings per share 5.28 pence
Total assets GBP5,798,952
For further information, please contact:-
Port Erin Biopharma Investments
Limited
Denham Eke (+44) 1624 639396
Beaumont Cornish
Roland Cornish / Felicity
Geidt +44 (0) 207 628 3396
Peterhouse Corporate Finance
Limited
John Levinson +44 (0) 20 7469 0930
Chairman's statement
Introduction
I have great pleasure in presenting the Interim Results for the
period ending 31 December 2013.
The Company not only recorded a net profit of GBP1.8 million for
the six months, but also following the General Meeting of
Shareholders on 11 November 2013, we amended our investing policy
to allow for an in specie transfer of cash and assets to acquire
324,174 shares in the Magna Biopharma Investment Fund ("MBIF") at
EUR10 per share which was completed on 6 December 2013. The latter
followed a strategic review to eliminate the significant discount
to Net Asset Value implicit in the Company's share price.
MBIF, as a UCITS fund, is a distinctive new investment
proposition, providing exposure to technological innovation but
with an attractive income. The investment advisors, including
myself, have a proven track record in the Biopharma sector. The
advantages of this acquisition to the Company include daily dealing
of the fund with no discount to Net Asset Value and a performance
fee charged on a relative basis to the MSCI World Health Care Net
EUR Index, rather than the absolute basis charged before.
As set out in the circular, at the end of a 12 month lock-in
period, the Directors intend to put further proposals to return
value to shareholders, either by transferring the Fund's shares as
a dividend distribution, share buy-back or other de-merger of
assets, in order to realise value for shareholders based on the
then proportional Net Asset Value of MBIF shares. By transferring
the majority of the investment portfolio in this way, the Company
will be able to distribute or sell the MBIF shares at the end of
the lock-in period at a price based on the MBIF's Net Asset Value
and thereby procure a better return to all shareholders.
Financial Review
During the period, our investment income including dividends,
net realised gains on sales, and net unrealised gains was
GBP2,340,447 (2012: GBP72,881). Operating expenses, including the
performance fee and the professional fees in connection with the in
specie purchase of the Magna Biopharma Income shares, were
GBP553,384 (2012: GBP68,804), resulting in profit for the period of
GBP1,787,086 (2012: GBP9,866).
Thus the basic and diluted earnings per share were 5.28 pence
(2012: 0.03 pence).
Our invested assets at fair value were GBP4,991,105 (2012:
GBP3,031,135), cash and equivalents were GBP802,741 (2012:
GBP101,241). Adding receivables of GBP5,106 (2012: GBP9,035), our
total assets stood at GBP5,798,952 (2012: GBP3,141,411).
Our share premium increased to GBP2,759,551 (2012: GBP2,699,013)
and our retained earnings increased to GBP2,627,452 (2012:
GBP435,075).
Thus the net asset value per share at 31 December 2013 was 15.9
pence (2012: 9.5 pence), an increase of 10.5%.
Strategy and Outlook
Since our acquisition, MBIF generated a net euro return of 6.1%
in January 2014, the first full month of operation and comfortably
ahead of the 2.8% rise seen in its MSCI World Health Care Index
benchmark. The latest available figures for February 2014 showed a
further positive month with widespread gains led once again by the
biotech sector, which comprises 35% of the portfolio. The Fund
generated a net euro return of 3.6% over the month, slightly below
the 4.5% rise seen in its MSCI World Health Care Index benchmark.
Since launch the Fund is up 12.2%, some 3% ahead of its
benchmark.
The fund advisors believe that, in the coming year, important
positive announcements will be made for the treatment of currently
difficult to treat cancers like melanoma and lung cancer, with
immunotherapy and its combinations at big pharmaceutical companies.
The MBIF portfolio has been positioned to provide investors with
exposure to all of these developments, and also to mitigate the
extreme volatility that is inherent in the smaller to medium sized
companies in the sector.
By acquiring MBIF shares, thus providing a clear exit strategy
for shareholders, the Company has well positioned itself to
consider other acquisitions in the sector. Your board is currently
considering a number of exciting options which show significant
promise.
Jim Mellon
Chairman
Statement of comprehensive income
Notes Period Period Year
ended ended ended
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Investment Income 3 2,340,447 72,881 588,966
Operating expenses
Directors' fees 2,5 (7,233) (5,000) (12,192)
Performance fee (379,057) - (60,539)
Other costs 4 (93,276) (57,231) (112,428)
Foreign exchange (losses)/gains (73,818) (6,573) 2,662
---------------- ---------------- ----------------
Profit from operating
activities 5 1,787,063 4,077 406,469
Interest received 23 5,789 8,689
---------------- ---------------- ----------------
Profit before taxation 1,787,086 9,866 415,158
Taxation - - -
---------------- ---------------- ----------------
Profit for the period/year 1,787,086 9,866 415,158
Other comprehensive - - -
income
---------------- ---------------- ----------------
Total comprehensive income for the
period/year 1,787,086 9,866 415,158
Basic and diluted earnings 12 5.28 pence 0.03 pence 1.25 pence
per share
The Directors consider that the Company's activities are
continuing.
Statement of financial position
Notes 31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Current assets
Financial assets at
fair value through profit
or loss 7 4,991,105 3,031,135 2,916,930
Trade and other receivables 5,106 9,035 7,797
Cash and cash equivalents 802,741 101,241 707,624
---------------- ---------------- ----------------
Total assets 5,798,952 3,141,411 3,632,351
Equity and liabilities
Capital and reserves
Share capital 6 34 33 34
Share premium 6 2,759,551 2,699,013 2,759,551
Retained earnings 2,627,452 435,074 840,366
---------------- ---------------- ----------------
5,387,037 3,134,120 3,599,951
Current liabilities
Trade and other payables 9 411,915 7,291 32,400
---------------- ---------------- ----------------
Total equity and liabilities 5,798,952 3,141,411 3,632,351
These financial statements were approved by the Board of
Directors on 28 March 2014 and were signed on their behalf by:
Denham Eke
Director
Statement of changes in equity
Share Share Retained
Capital Premium Profit Total
Notes GBP GBP GBP GBP
Balance at 01 July
2013 (audited) 34 2,759,551 840,366 3,599,951
Total comprehensive
income for the period - - 1,787,086 1,787,086
Shares issued 6 - - - -
_________ _________ _________ _________
Balance at 31 December
2013 (unaudited) 34 2,759,551 2,627,452 5,387,037
Share Share Retained
Capital Premium Profit Total
Notes GBP GBP GBP GBP
Balance at 01 July
2012 (audited) 33 2,699,013 425,208 3,124,254
Total comprehensive
income for the period - - 9,866 9,866
Shares issued 6 - - - -
_________ _________ _________ _________
Balance at 31 December
2012 (unaudited) 33 2,699,013 435,074 3,134,120
Statement of cash flows
Notes
Period Period Year
ended ended ended
31/12/ 31/12/ 30/06/2013
2013 2012
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cash flows from operating activities
Profit for the period/year 1,787,086 9,866 415,158
Adjusted for:
Interest received (23) (5,789) (8,689)
Realised and unrealised gains 3 (2,338,021) (66,341) (572,667)
Services settled by way of
issue of shares - - 60,539
-------------- -------------- --------------
Operating loss before changes
in working capital (550,958) (62,264) (105,659)
Decrease in receivables 2,691 545 1,783
Increase/(decrease) in payables 379,515 (24,610) 500
-------------- -------------- --------------
Net cash outflow from operating
activities (168,752) (86,329) (103,376)
-------------- -------------- --------------
Cash flows from investing activities
Purchase of investments (3,395,510) (532,831) (1,720,400)
Proceeds from sale of investments 3,659,356 483,004 2,285,320
Interest received 23 6 8,689
-------------- -------------- --------------
263,869 (49,821) 573,609
-------------- -------------- --------------
(Decrease)/increase in cash
and cash equivalents 95,117 (136,150) 470,233
Cash and cash equivalents at
beginning of period/year 707,624 237,391 237,391
-------------- -------------- --------------
Cash and cash equivalents at
the end of period/year 802,741 101,241 707,624
Notes to the financial statements
1 Accounting policies
Port Erin Biopharma Investments Limited is a Company domiciled
in the Isle of Man. The Company's strategy is to create value for
Shareholders through investing in companies that have the potential
to generate substantial revenues through the development of
biopharmaceutical drugs.
The principal accounting policies are set out below.
a) Statement of compliance
These condensed interim financial statements have been prepared
in accordance with IAS34 Interim Financial Reporting and do not
include all of the information required for full annual financial
statements..
The financial statements were approved by the Board of Directors
on 28 March 2014.
b) Basis of preparation
Use of estimates and judgment
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an
on-going basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision only
affects that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
Going concern
The financial statements have been prepared on a going concern
basis, taking into consideration the level of cash and cash
equivalents and short term investments held by the Company. The
Directors have a reasonable expectation that the Company will have
adequate resources for its continuing existence and projected
activities for the foreseeable future, and for these reasons,
continue to adopt the going concern basis in preparing the
financial statements for the period ended 31 December 2013.
Functional and presentation currency
These financial statements are presented in Pound Sterling which
is the Company's functional currency and rounded to the nearest
Pound.
c) Significant accounting policies
The accounting policies adopted by the Company in the
preparation of these condensed interim financial statements are the
same as those applied by the Company in its financial statements as
at and for the year ended 30 June 2013. There were no new
accounting policies adopted during the period.
The audited financial statements of the Company as at and for
the year ended 30 June 2013 are available at the Company's website
below:
http://www.porterinbiopharma.com/financial_reports.php
2 Directors' fees
The fees of Directors who served during the period to 31
December 2013 were as follows:
31/12/13 31/12/12 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
James Mellon - - -
Nicholas James Woolard - 5,000 10,000
Denham Eke - - -
Alexander Anderson Stuart Whamond 7,233 - 2,192
-------------- -------------- --------------
7,233 5,000 12,192
On 6 May 2011, Shellbay Investments Limited entered into a
letter of appointment with the Company to provide the services of
James Mellon as Non-Executive Chairman of the Company. Remuneration
under the letter of appointment shall be payable to Shellbay
Investments Limited and shall be satisfied by the issue of such
number of Ordinary Shares equivalent to 15.0 per cent. of any
increase in the Net Asset Value of the Company over each quarterly
period. There are no provisions providing for any benefit to
Shellbay Investments Limited or James Mellon on the termination of
the engagement. The Director of Shellbay Investments Limited has
agreed to waive any share-based payments until the Net Asset Value
of each share exceeds 10.00 pence.
On the 6 December 2013, the Company agreed that the Management
Fee of GBP353,041 for the period to 30 September 2013 shall be
settled by the transfer of sufficient Fund Shares from the Company
to Shellbay (each with an implied price equal to the Subscription
Price) in full and final settlement of the September 2013
Management Fee. Shellbay agreed that the current Management
Agreement shall be amended so that no further fees relating to the
Magna Biopharma Income Fund (MBIF) Shares under the current
Management Agreement shall be due and the current "high watermark"
rebased to reflect the value of the other assets remaining in the
Company following the Subscription. Any future fees due to Shellbay
will be settled by the transfer of MBIF Shares at the offer price
prevailing on the quarterly valuation date
On 6 May 2011 Nicholas James Woolard entered into a letter of
appointment with the Company to provide services as a Non-Executive
Director of the Company. The letter of appointment was for an
initial period of twelve months, from 16 May 2011, and may be
terminated on not less than three months' notice given by either
party to the other at any time. The letter of appointment contains
provisions for early termination, inter alia, in the event of a
breach by Nicholas James Woolard. Remuneration under the letter of
appointment was for an annual fee of GBP10,000 payable on a
quarterly basis. There are no provisions providing for any benefit
to Nicholas James Woolard on the termination of the engagement.
Nicholas Woolard resigned from his position on 12 April 2013.
Denham Eke, appointed a Director on 30 May 2012, currently
receives no remuneration for providing his services.
As at 6 December 2013, the value of non-MBIF assets held by the
Company was GBP2,052,035. As at the 31 December 2013, the value of
non-MBIF assets had increased to GBP2,225,475. Thus, under the
revised Shellbay Letter of Appointment, the increase in Net Asset
Value of GBP173,440.15 will be settled by a performance fee of 15%,
which is GBP26,016.
At present, there are no other fees due by the Company in
respect of investment management services.
3 Investment income
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Dividend income 2,426 6,541 16,299
Net realised gains on sale of
investments 966,330 50,529 769,484
Net unrealised gains on investments 1,371,691 15,812 (196,817)
-------------- -------------- --------------
2,340,447 72,881 588,966
4 Other costs
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Auditors' remuneration for the
current period/year 8,625 7,200 14,904
Bank charges 209 119 415
Insurance 3,193 3,176 6,283
Marketing 3,575 72 72
Professional fees 77,299 46,664 86,555
Sundry expenses 375 - 4,199
-------------- -------------- --------------
93,276 57,231 112,428
The Company has no employees other than the Directors.
5 Profit from operating activities
Profit from operating activities is stated after charging:
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Auditors' fees 8,625 7,200 14,400
Directors' fees 7,233 5,000 10,000
-------------- -------------- --------------
15,858 12,200 24,400
6 Share capital and share premium
Each share in the Company confers upon the shareholder:
-- the right to one vote at a meeting of the shareholders or on any resolution of shareholders;
-- the right to an equal share in any dividend paid by the Company, and
-- the right to an equal share in the distribution of the
surplus assets of the Company on its liquidation
The Company may by resolution of Directors redeem, purchase or
otherwise acquire all or any of the shares in the Company subject
to regulations set out in the Company's Articles of
Association.
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited
GBP GBP GBP
Authorised
2,000,000,000 Ordinary shares
of GBP0.000001 2,000 2,000 2,000
No. of Share Share
Shares Capital Premium
GBP GBP
Balance at 01 July 2012/
31 December 2013 33,000,000 33 2,699,013
Shares issued in settlement
of services 864,836 1 60,538
-------------- -------------- --------------
Balance at 30 June 2013/
31 December 2013 33,864,836 34 2,759,551
On 9 April 2013 the Company issued 864,836 ordinary shares at a
price of GBP0.07 each resulting in share premium of GBP60,538. The
shares were issued to Shellbay Investments Limited in settlement of
services provided to the Company (see note 2)
Capital management
The Company manages its capital to maximise the return to
shareholders through the optimisation of equity. The capital
structure of the Company as at 31 December 2013 consists of equity
attributable to equity holders of the Company, comprising issued
capital, reserves and retained earnings as disclosed.
The Company manages its capital structure and makes adjustments
to it in the light of economic conditions and the strategy approved
by shareholders. To maintain or adjust the capital structure, the
Company may make dividend payment to shareholders, return capital
to shareholders or issue new shares and release the share premium
account. No changes were made in the objectives, policies or
processes during the period under review.
Dividends
No dividends were declared or proposed by the Directors during
the period (31 December 2012: Nil).
7 Financial assets at fair value through profit or loss
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Quoted 4,671,135 2,709,427 2,667,817
Unquoted 319,970 321,708 249,113
-------------- -------------- --------------
4,991,105 3,031,135 2,916,930
Equities 4,901,454 3,007,987 2,900,677
Warrants 89,651 23,148 16,253
-------------- -------------- --------------
4,991,105 3,031,135 2,916,930
8 Financial instruments
Financial Risk Management
All aspects of the Company's financial risk management
objectives and policies are consistent with those disclosed in the
financial statements as at and for the year ended 30 June 2013.
9 Trade and other payables
31/12/2013 31/12/2012 30/06/2013
(unaudited) (unaudited) (audited)
GBP GBP GBP
Provision for audit fee 7,500 7,200 18,000
Shellbay Investments Limited 379,057 - -
Other 25,358 90 14,400
-------------- -------------- --------------
411,915 7,290 32,400
10 Share warrants
At the date of admission to AIM, the Company issued 30,000,000
non-transferable warrants, entitling the holder to subscribe for
one new ordinary share for every placing share, and which will not
be admitted to trading on AIM. The warrants were exercisable for
12.5 pence at any time within two years of the date of issue. The
warrant exercise was either at the option of the holder or at the
option of the Company, in the event that the closing price of the
ordinary shares was more than 20 pence for five consecutive trading
days. In considering the share subscription price, the lack of
historic share price performance data, and the price and conditions
attaching to exercise, the Directors deemed that the warrants had
no separate value from the shares issued on the Company's admission
to AIM.
All warrants lapsed on 15 September 2013 and there were thus no
warrants in issue at the year-end.
11 Related party transaction
Under an agreement dated 1 December 2011, Burnbrae Limited, a
Company related to both James Mellon and Denham Eke, provide
certain services, principally accounting and administration, to the
Company. This agreement may be terminated by either party on three
months' notice. The Company incurred a total cost of GBP18,000 (31
December 2012: GBP18,000) during the period under this agreement of
which GBP Nil was outstanding as at the period end (31 December
2012: GBP Nil).
12 Basic and diluted earnings per share
The calculation of basic earnings per share of the Company is
based on the profit for the period of GBP1,787,086 (31 December
2012: GBP9,866) and the weighted average number of shares of
33,864,836 (31 December 2012: 33,000,000) in issue during the
period.
Diluted earnings per share are calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares such as
warrants and options. There is no dilutive effect at 31 December
2013 because the warrants have lapsed.
13 Commitments and contingent liabilities
There are no known commitments or contingent liabilities as at
the period end.
14 Events after the reporting date
There have been no material events since the reporting date that
require disclosure in the interim financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUGCWUPCGMR
Agronomics (LSE:ANIC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Agronomics (LSE:ANIC)
Historical Stock Chart
From Sep 2023 to Sep 2024