TIDMC4XD
RNS Number : 3029Z
C4X Discovery Holdings PLC
14 December 2017
C4X Discovery Holdings plc
("C4XD" or the "Company")
Full year results for the year ended 31 July 2017
14 December 2017 - C4X Discovery Holdings plc (AIM: C4XD), a
pioneering drug discovery company, today announces its full year
results for the year ended 31 July 2017.
Financial highlights
-- Completion of a GBP5.0 million fundraise in September 2016
through the placing of 4,901,961 new ordinary shares in the capital
of the Company ("Ordinary Shares") at a price of 102 pence per
Ordinary Share, as reported in the 2016 annual report.
-- Completion of a GBP7.0 million fundraise in March 2017
through the placing of 8,235,294 new Ordinary Shares with existing
and new investors at a price of 85 pence per Ordinary Share.
-- Year-end cash of GBP6,031,000 (2016: GBP1,328,000) remains on
the balance sheet following the GBP5 million and GBP7 million
raised via placings.
-- R&D expenditure rose 16% to GBP6,100,000 (2016:
GBP5,239,000) reflecting both the increase in drug discovery
activity and the continued development of lead drug candidates
towards commercialisation.
Operational highlights
Corporate highlights
Strategy
-- The Board is committed to the delivery of C4X Discovery
Holding plc's ("C4XD's") vision to become the world's most
productive drug discovery engine by exploiting cutting-edge
technologies to design and create best-in-class small molecule
candidates targeting a range of high value therapeutic areas.
-- C4XD focusses on generating a high value pre-clinical asset
portfolio that will drive revenue through early stage licensing
deals with the pharmaceutical industry. Existing fee-for-service
agreements have been discontinued during the current financial
year.
Partnerships
-- The Company continues to enhance its core state-of-the-art
target identification and drug design capabilities through
strategic partnerships:
o A multi-target risk-sharing alliance with Evotec AG ("Evotec")
was announced in September 2016.
Discovery Engine progress
-- C4XD's proprietary drug asset portfolio has grown from three
programmes in 2014 to eight programmes across a number of
therapeutic areas.
-- Disease areas of focus are inflammation, neurodegeneration,
and opportunistic areas (e.g. immuno-oncology, addiction and
diabetes).
Senior appointments
-- Brad Hoy, Chief Financial Officer, and Dr Craig Fox, Chief
Scientific Officer, were appointed to the Board of Directors in
November 2016.
Post-period end
-- New pre-clinical data on C4XD's leading Orexin-1 antagonist
programme were presented at Neuroscience 2017 in November in
Washington, DC.
Dr Clive Dix, CEO of C4X Discovery, said: "This has been an
important year for C4XD in positioning us to achieve our ambitions
in drug discovery and deliver value for our shareholders. We have
progressed our pipeline towards commercialisation, identified new
drug targets and discovery programmes and raised the capital
required to support our strategy.
"We have also seen high levels of pre-clinical partnering
interest for our lead programme Orexin-1 to treat addiction and
have entered into late stage commercial discussions. During the
fundraise in March 2017 we stated that we fully expected to
complete our first commercial deal within 12 months of that date.
We believe and understand that this is a crucial element of
successful implementation of our business model. We continue to
believe that this important milestone will be met. Our goal is to
become a self-sustaining business and I am confident we will see
significant progress in the coming months in delivering on the
potential of our model."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 (MAR).
--S-
For further information, please contact:
C4X Discovery Holdings plc
Clive Dix, Chief Executive Officer 07801 865 803
Panmure Gordon (UK) Limited (NOMAD and Broker)
Freddy Crossley (Corporate Finance) 020 7886 2500
Tom Salvesen (Corporate Broking)
Consilium Strategic Communications
Mary-Jane Elliott, Chris Gardner, Matthew Neal, Melissa Gardiner
0203 709 5700
About C4X Discovery
C4X Discovery aims to become the world's most productive drug
discovery engine by exploiting cutting edge technologies to design
and create best-in-class small-molecule candidates targeting a
range of high value therapeutic areas. The company's goal is to
drive returns through early-stage revenue-generating deals with the
pharmaceutical industry.
C4X Discovery has a state-of-the-art suite of proprietary
technologies across the drug discovery process. The company's
innovative DNA-based target identification platform (Taxonomy3(R) )
utilises human genetic datasets to identify novel patient-specific
targets leading to greater discovery productivity and increased
probability of clinical success. This is complemented by C4XD's
novel drug design platform which comprises two innovative chemistry
technologies, Conformetrix and Molplex, that combine 4D molecular
shape analyses (based on experimental data) with best-in-class
computational chemistry. This provides new and unprecedented
insight into the behaviour of drug molecules, enabling the
production of potent selective compounds faster and more cost
effectively than the industry standard.
C4X Discovery is advancing its in-house pipeline in addiction,
diabetes and inflammation with a number of new drug candidates
identified and further progress made towards the clinic. In
selecting new targets C4X Discovery will focus on the high-value
disease areas of inflammation and neurodegeneration, and will
continue to maximise value from opportunistic areas, for example,
immuno-oncology, addiction, and diabetes.
The Company was founded as a spin-out from the University of
Manchester. It has a highly experienced management team and Board
who have delivered significant value creation within the healthcare
sector historically and have enabled C4XD to reach multiple value
inflexion points since IPO. For additional information please go
to: www.c4xdiscovery.com.
INTERIM CHAIRMAN'S STATEMENT
Last year we set out our vision as the "architects" of drug
discovery, constantly innovating and finding novel ways to solve
challenges in biology and chemistry that confound others and,
through this, building the world's most productive Drug Discovery
Engine.
This has been an important year in delivering that vision. We
have continued to strengthen the data package around our lead
Orexin-1 antagonist and believe its broad applicability in
addiction and related disorders such as anxiety, post-traumatic
stress disorder and impulse control make it a compelling candidate
for partnership.
Our agreement with Evotec will involve us working together on
novel small molecule drug targets across a range of targets and
stages of development.
We are also seeing the power of our Drug Discovery Engine with
exciting new targets identified in inflammation/autoimmune diseases
and neurodegenerative diseases. These, alongside our existing
programmes, open new opportunities for future revenue-generating
deals with the pharmaceutical industry.
During the year we have strengthened our financial position
through the raising of a total of GBP12 million and added a wealth
of knowledge and experience to our Board with Brad Hoy and Dr Craig
Fox joining as Directors.
We continue to build towards becoming a significant
self-sustaining business and look forward to further progress in
the coming period in delivering on the potential of our model.
Sam Williams
Interim Chairman
CEO'S STATEMENT
This has been an important year for C4XD in implementing our
vision as we have progressed our pipeline towards
commercialisation, replenished our pipeline with new discovery
programmes and raised the capital required to support our
strategy.
Commercialisation
During the fundraise in March 2017 we stated that we fully
expected to complete our first commercial deal within 12 months of
that date. We believe and understand that this is a crucial element
of successful implementation of our business model. We continue to
believe that this important milestone will be met.
Our lead programme, Orexin-1, aims to treat addiction by
targeting the "craving" process itself and, therefore, can be
applied across a broad range of substance disorders. We have
continued to build our pre-clinical data package, including the
recent presentation of data at Neuroscience 2017 in Washington,
DC.
We have seen high levels of pre-clinical partnering interest and
have entered into late stage commercial discussions.
Forming strategic alliances
Last year we announced we would no longer continue providing any
fee--for--service capabilities choosing instead to seek longer-term
risk--sharing strategic alliances.
In September 2016 we entered a new multi--target, risk-sharing
strategic collaboration with Evotec AG ("Evotec"), a leading drug
discovery and development alliance company. This deal enables us to
increase the output of our engine whilst reducing risk and
cost.
Alongside our own proprietary suite of cutting-edge
technologies, the alliance with Evotec will expand our ability to
generate commercially attractive pre-clinical assets to meet the
pharmaceutical industry's increasing demand for high quality, early
stage drug candidates.
We will continue to seek similar, value--adding alliances.
Successful fundraises
In September 2016, we completed a GBP5 million fundraise at 102
pence per share bringing in several new investors, including
Calculus Capital Limited and Polar Capital LLP.
In March 2017 we completed a GBP7.0 million fundraise at 85
pence per share bringing in several new investors including Legal
& General and Hargreave Hale which have strong track records in
investing in the life science sector. This new cash enables us to
progress and add to our pre-clinical pipeline and provides working
capital for operations.
Building our discovery portfolio
We are constantly building our portfolio and will continue to
invest into C4XD's core discovery activities in order to support
our ambitions.
Over the past 12 months, key drug discovery programmes in
addiction and inflammation have advanced and our Taxonomy3(R)
DNA-based target discovery technology continues to produce novel
target data in a number of commercially valuable disease areas.
These targets can be addressed through our drug design platform
including our Conformetrix and MolPlex chemistry technologies.
Critically, robust scientific and commercial intelligence
gathering continues to drive selection criteria for inclusion in
our portfolio.
Outlook
C4XD's strategy is delivering value for our shareholders and
positioning us well to achieve our ambitions in drug discovery. The
next year will continue to focus on securing deal revenue from the
commercial discussions initiated this year, progressing our
discovery candidates to pre-clinical development and
commercialisation and continuing to replenish and build the
pipeline by identifying novel and exciting drug targets. I am
excited about what we can achieve, and I look forward to sharing
this journey with you.
Clive Dix
Chief Executive Officer
FINANCIAL REVIEW
Results
Revenue for the 12 months ended 31 July 2017 amounted to
GBP143,000 (2016: GBP279,000). These revenues were largely
generated through collaborations with our partners. Last year the
Group ceased its fee-for-service offering choosing only to work on
a collaborative risk and revenue sharing basis. Grants secured are
accounted for as a reduction in research and development
("R&D") expenses.
R&D expenses, which comprise payroll costs, materials spend
and third party contract development costs, have increased by 16%
to GBP6,100,000 for the year ended 31 July 2017 (2016:
GBP5,239,000). This reflects both the increase in drug discovery
activity and the continued development of lead drug candidates
towards commercialisation.
Administrative expenses increased by GBP716,000 during the year
to GBP2,533,000 (2016: GBP1,817,000) reflecting additional
non--scientific staff costs, in particular staff to build a
commercial team, and additional premises costs to support growing
activities.
The loss after tax for the year ended 31 July 2017 was
GBP6,782,000 or 16.88 pence per share (2016: GBP5,321,000 or 16.83
pence per share).
The Group had net assets at 31 July 2017 of GBP9,060,000 (2016:
GBP4,305,000) and cash, cash equivalents, short-term investments
and deposits of GBP6,031,000 (2016: GBP1,328,000). The cash
position reflects the GBP5 million and GBP7 million raised via
placings in September 2016 and March 2017 respectively as detailed
in the CEO's Statement.
Both cash and costs continue to be prudently managed.
Brad Hoy
Chief Financial Officer
Consolidated statement of comprehensive income
For the year ended 31 July 2017
2017 2016
Notes GBP000 GBP000
-------------------------------------------- --------- ---------
Revenue 5 143 279
Cost of sales (3) (12)
-------------------------------------------- --------- ---------
Gross profit 140 267
Research and development expenses (6,100) (5,239)
Administrative expenses (2,533) (1,817)
-------------------------------------------- --------- ---------
Operating loss (8,493) (6,789)
-------------------------------------------- --------- ---------
Finance income 8 3 32
---------------------------------------- --------- ---------
Loss before taxation (8,490) (6,757)
Taxation 9 1,708 1,436
---------------------------------------- --------- ---------
Loss for the year and total comprehensive
loss for the year (6,782) (5,321)
-------------------------------------------- --------- ---------
Loss per share
Basic and diluted loss for the year 10 (16.88)p (16.83)p
---------------------------------------- --------- ---------
The loss for the year arises from the Group's continuing
operations and is attributable to the equity holders of the
parent.
There were no other items of comprehensive income for the year
(2016: GBPnil) and therefore the loss for the year is also the
total comprehensive loss for the year.
The basic and diluted loss per share are the same as the effect
of share options is anti-dilutive.
Consolidated statement of changes in equity
For the year ended 31 July 2017
Share-
Issued based Capital
equity Share payment Merger contribution Revenue
capital premium reserve reserve reserve reserve Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- -------- ------------- -------- -------
At 31 July 2015 2,335 10,013 51 920 195 (5,546) 7,968
------------------------- ----- -------- -------- -------- ------------- -------- -------
Loss for the year
and total comprehensive
loss for the year - - - - - (5,321) (5,321)
------------------------- ----- -------- -------- -------- ------------- -------- -------
Issue of share capital 15 1,584 - - - - 1,599
Share-based payments - - 59 - - - 59
------------------------- ----- -------- -------- -------- ------------- -------- -------
Transactions with
owners 15 1,584 59 - - - 1,658
------------------------- ----- -------- -------- -------- ------------- -------- -------
At 31 July 2016 2,350 11,597 110 920 195 (10,867) 4,305
------------------------- ----- -------- -------- -------- ------------- -------- -------
Loss for the year
and total comprehensive
loss for the year - - - - - (6,782) (6,782)
------------------------- ----- -------- -------- -------- ------------- -------- -------
Issue of share capital 140 11,939 - - - - 12,079
Expenses of placing - (692) - - - - (692)
Share-based payments - - 150 - - - 150
------------------------- ----- -------- -------- -------- ------------- -------- -------
Transactions with
owners 140 11,247 150 - - - 11,537
------------------------- ----- -------- -------- -------- ------------- -------- -------
At 31 July 2017 2,490 22,844 260 920 195 (17,649) 9,060
------------------------- ----- -------- -------- -------- ------------- -------- -------
Company statement of changes in equity
For the year ended 31 July 2017
Share-
Issued based
equity Share payment
capital premium reserve Total
GBP000 GBP000 GBP000 GBP000
------------------------------------------------- -------- -------- -------
At 31 July 2015 2,335 10,013 22 12,370
------------------------------------------ ----- -------- -------- -------
Loss for the year and total comprehensive - - - -
loss for the year
------------------------------------------ ----- -------- -------- -------
Issue of share capital 15 1,584 - 1,599
Share-based payments - - 59 59
------------------------------------------ ----- -------- -------- -------
Transactions with owners 2,350 11,597 81 14,028
------------------------------------------ ----- -------- -------- -------
At 31 July 2016 2,350 11,597 81 14,028
------------------------------------------ ----- -------- -------- -------
Loss for the year and total comprehensive - - - -
loss for the year
------------------------------------------ ----- -------- -------- -------
Issue of share capital 140 11,939 - 12,079
Expenses of placing - (692) - (692)
Share-based payments - - 150 150
------------------------------------------ ----- -------- -------- -------
Transactions with owners 140 11,247 150 11,537
------------------------------------------ ----- -------- -------- -------
At 31 July 2017 2,490 22,844 231 25,565
------------------------------------------ ----- -------- -------- -------
Statements of financial position
At 31 July 2017
Registered no. 09134041
31 July 31 July 31 July 31 July
2017 2017 2016 2016
Group Company Group Company
Notes GBP000 GBP000 GBP000 GBP000
---------------------------------- --------- -------- --------- --------
Assets
Non-current assets
Property, plant and equipment 11 90 - 94 -
Intangible assets 12 570 - 654 -
Goodwill 13 1,192 - 1,192 -
Investment in subsidiaries 14 - 2,102 - 1,952
----------------------------- --- --------- -------- --------- --------
1,852 2,102 1,940 1,952
--------------------------------------------- -------- --------- --------
Current assets
Trade and other receivables 15 548 23,462 429 12,075
Income tax asset 16 1,700 - 1,400 -
Cash and cash equivalents 17 6,031 1 1,328 1
----------------------------- --- --------- -------- --------- --------
8,279 23,463 3,157 12,076
--------------------------------------------- -------- --------- --------
Total assets 10,131 25,565 5,097 14,028
----------------------------- -------------- -------- --------- --------
Liabilities
Current liabilities
Trade and other liabilities 18 1,071 - 792 -
----------------------------- --- --------- -------- --------- --------
Total liabilities 1,071 - 792 -
---------------------------------- --------- -------- --------- --------
Net assets 9,060 25,565 4,305 14,028
---------------------------------- --------- -------- --------- --------
Capital and reserves
Issued equity capital 19 2,490 2,490 2,350 2,350
Share premium 19 22,844 22,844 11,597 11,597
Share-based payment reserve 20 260 231 110 81
Merger reserve 21 920 - 920 -
Capital contribution reserve 22 195 - 195 -
Revenue reserve 23 (17,649) - (10,867) -
----------------------------- --- --------- -------- --------- --------
Total equity 9,060 25,565 4,305 14,028
---------------------------------- --------- -------- --------- --------
Cash flow statements
For the year ended 31 July 2017
31 July 31 July 31 July 31 July
2017 2017 2016 2016
Group Company Group Company
Notes GBP000 GBP000 GBP000 GBP000
-------------------------------------------- -------- --------- -------- --------
Loss after interest and tax (6,782) - (5,321) -
Adjustments for:
Depreciation of tangible fixed
assets 11 44 - 33 -
Amortisation of intangible assets 12 135 - 55 -
Share-based payments 20 150 - 59 -
Taxation (1,708) - (1,436) -
Changes in working capital:
(Increase)/decrease in trade and
other receivables (119) (11,357) (40) 67
Increase/(decrease) in trade and
other payables 392 - (28) -
Decrease in deferred revenue (83) - (56) -
-------------------------------------------- -------- --------- -------- --------
Cash (outflow)/inflow from operating
activities (7,971) (11,357) (6,734) 67
Research and development tax credit
received 1,408 - 736 -
-------------------------------------------- -------- --------- -------- --------
Net cash (outflow)/inflow from operating
activities (6,563) (11,357) (5,998) 67
-------------------------------------------- -------- --------- -------- --------
Cash flows from investing activities
Purchases of tangible fixed assets 11 (40) - (42) -
Purchases of intangible fixed
assets 12 (51) - (50) -
Acquisition of subsidiary (net of
cash acquired) - - (67) (67)
Decrease/(increase) in cash placed
on deposit 17 - - 4,000 -
--------------------------------------- --- -------- --------- -------- --------
Net cash (outflow)/inflow from investing
activities (91) - 3,841 (67)
-------------------------------------------- -------- --------- -------- --------
Cash flows from financing activities
Proceeds from issues of ordinary
share capital 19 12,049 12,049 - -
Expenses relating to share capital
issue 19 (692) (692) - -
--------------------------------------- --- -------- --------- -------- --------
Net cash inflow from financing activities 11,357 11,357 - -
-------------------------------------------- -------- --------- -------- --------
Increase/(decrease) in cash and cash
equivalents 4,703 - (2,157) -
Cash and cash equivalents at the
start of the year 1,328 1 3,485 1
-------------------------------------------- -------- --------- -------- --------
Cash and cash equivalents at the
end of the year 6,031 1 1,328 1
-------------------------------------------- -------- --------- -------- --------
Cash, cash equivalents and deposits
at the end of the year 17 6,031 1 1,328 1
--------------------------------------- --- -------- --------- -------- --------
Notes to the full year results
For the year ended 31 July 2017
1. Reporting entity
C4X Discovery Holdings plc (the "Company") is an AIM-listed
company incorporated and domiciled in the UK.
These full year results consolidate those of the Company and its
subsidiaries (together referred to as the "Group" and individually
as "Group entities") for the year ended 31 July 2017.
The full year results of the Company and the Group for the year
ended 31 July 2017 were authorised for issue by the Board of
Directors on 14 December 2017 and the consolidated statement of
financial position was signed on the Board's behalf by Clive
Dix.
The full year results do not constitute the company's statutory
accounts for the years ended 31 July 2017 or 2016 but are derived
from those accounts. Statutory accounts for 2016 have been
delivered to the registrar of companies, and those for 2017 will be
delivered in due course. The auditor has reported on those
accounts; their reports were (i) unqualified, (ii) did not include
a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
The significant accounting policies adopted by the Group are set
out in note 3.
2. Basis of preparation
(a) Statement of compliance
The Group's and parent company's financial statements have been
prepared in accordance with International Financial Reporting
Standards as adopted by the European Union ("IFRS") and
International Financial Reporting Committee ("IFRIC")
interpretations as they apply to the financial statements of the
Group for the period ended 31 July 2017.
(b) Basis of measurement
The Company and Group financial statements have been prepared on
the historical cost basis.
The methods used to measure fair values of assets and
liabilities are discussed in the respective notes in note 3
below.
(c) Going concern
The Interim Chairman's and CEO's Statements outline the business
activities of the Group along with the factors which may affect its
future development and performance. The Group's financial position
is discussed in the Financial Review along with details of its cash
flow and liquidity. Note 25 to the financial statements sets out
the Group's financial risks and the management of those risks.
Having prepared management forecasts and made appropriate
enquiries, the Directors are satisfied that the Group has adequate
resources for the foreseeable future. A majority of expenses are
discretionary and within the control of management. Accordingly
they have continued to adopt the going concern basis in preparing
the Group and Company financial statements. However, given the
nature of the Group's biotechnology-based business and need for
ongoing investment in its drug development activities, the Group
will be looking to raise additional funds in the future to allow
for continued development.
(d) Functional and presentational currency
These financial statements are presented in Pounds Sterling,
which is the Group's functional currency. All financial information
presented has been rounded to the nearest thousand.
(e) Use of estimates and judgements
The preparation of financial statements requires management to
make estimates and judgements that affect the amounts reported for
assets and liabilities as at the reporting date and the amounts
reported for revenues and expenses during the year. The nature of
estimation means that actual amounts could differ from those
estimates. Estimates and judgements used in the preparation of the
financial statements are continually reviewed and revised as
necessary.
While every effort is made to ensure that such estimates and
judgements are reasonable, by their nature they are uncertain and,
as such, changes in estimates and judgements may have a material
impact on the financial statements.
The key sources of estimation uncertainty that have a
significant risk of causing material adjustment to the carrying
amount of assets and liabilities within the next financial year are
discussed below.
Intangible fixed assets and goodwill
The Group tests annually whether intangible fixed assets and
goodwill have suffered any impairment. The potential recoverable
amounts of intangible fixed assets and goodwill have been
determined based on value-in-use calculations. These calculations
require the use of estimates both in arriving at the expected
future cash flows and the application of a suitable discount rate
in order to calculate the present value of these flows. There is a
degree of judgement involved in making these assessments of
attributable values on acquisition and making impairment
assessments. The assumptions used in the value-in-use calculations
are included in notes 12 and 13.
Equity-settled share-based payments
The determination of share-based payment costs requires: the
selection of an appropriate valuation method; consideration as to
the inputs necessary for the valuation model chosen; judgement
regarding when and if performance conditions will be met; and the
estimation of the number of awards that will ultimately vest.
Inputs required for this arise from judgements relating to the
future volatility of the share price of C4XD and comparable
companies, the Group's expected dividend yields, risk-free interest
rates and expected lives of the options. The Directors draw on a
variety of sources to aid in the determination of the appropriate
data to use in such calculations. The share-based payment expense
is most sensitive to vesting assumptions and to the future
volatility of the future share price factor. Further information is
included in note 3.
Taxation
Management judgement is required to determine the amount of tax
assets that can be recognised, based upon the likely timing and
level of future taxable profits together with an assessment of the
effect of future tax planning strategies. The carrying value of the
unrecognised tax losses at 31 July 2017 was GBP1,425,000 (2016:
GBP830,000). The value of the net deferred tax asset not recognised
at the year end is GBP14,000 (2016: net liability of GBP12,000).
Management judgement is similarly required in estimating the value
of the research and development income tax credit receivable of
GBP1,700,000 (2016: GBP1,400,000). Further information is included
in note 9.
3. Significant accounting policies
The accounting policies set out below are consistent with those
of the previous financial year and are applied consistently by
Group entities.
(a) Basis of consolidation
The Group financial statements consolidate the financial
statements of C4X Discovery Holdings plc and the entities it
controls (its subsidiaries) drawn up to 31 July each year.
All business combinations are accounted for by applying the
acquisition method as at the acquisition date, which is the date on
which control is transferred to the Group.
The Group measures goodwill at the acquisition date as:
-- the fair value of the consideration transferred; plus
-- the recognised amount of any non-controlling interests in the acquiree; plus
-- the fair value of the existing equity interest in the acquiree; less
-- the net recognised amount (generally fair value) of the
identifiable assets acquired and liabilities assumed.
Transaction costs related to the acquisition, other than those
associated with the issue of debt or equity securities, that the
Group incurs in connection with a business combination are expensed
as incurred.
Subsidiaries are all entities over which the Group has the power
to govern the financial and operating policies. All C4X Discovery
Holdings plc's subsidiaries are 100% owned. Subsidiaries are fully
consolidated from the date control passes.
All intra-group transactions, balances and unrealised gains on
transactions between Group companies are eliminated on
consolidation. Subsidiaries' accounting policies are amended where
necessary to ensure consistency with the policies adopted by the
Group.
(b) Foreign currency transactions
Transactions in foreign currencies are initially recorded in the
functional currency by applying the spot rate ruling at the date of
the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the functional currency rate
of exchange ruling at the reporting date. All differences are taken
to the consolidated statement of comprehensive income.
(c) Segmental reporting
An operating segment is a component of an entity that engages in
business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the
entity's chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its
performance, and for which discrete financial information is
available. As at the reporting date the Group operated with only a
single segment.
(d) Revenue recognition
Revenue is recognised to the extent that it is probable that
economic benefits will flow to the Group and the revenue can be
reliably measured. Revenue is measured at the fair value of the
consideration received or receivable for the sale of goods or
services, excluding discounts, rebates, VAT and other sales taxes
or duties.
The Group's revenues to date comprise amounts earned under joint
development agreements and individual project development
programmes in respect of novel small molecule therapies.
Revenues received from development programmes are recognised on
a straight-line basis over the period that the development work is
being performed as measured by contractual milestones. Revenue is
not recognised where there is uncertainty regarding the achievement
of such milestones and where either revenue has not been paid or
the customer has the right to recoup advance payments.
(e) Government grants
Government grants are recognised when it is reasonable to expect
that the grants will be received and that all related conditions
are met, usually on submission of a valid claim for payment.
Government grants of a revenue nature are deducted from
administrative expenses in the consolidated statement of
comprehensive income in line with the terms of the underlying grant
agreement.
(f) Research and development
Research costs are charged in the consolidated statement of
comprehensive income as they are incurred. Development costs will
be capitalised as intangible assets when it is probable that future
economic benefits will flow to the Group. Such intangible assets
will be amortised on a straight-line basis from the point at which
the assets are ready for use over the period of the expected
benefit, and will be reviewed for impairment at each reporting date
based on the circumstances at the reporting date.
The criteria for recognising expenditure as an asset are:
-- it is technically feasible to complete the product;
-- management intends to complete the product and use or sell it;
-- there is an ability to use or sell the product;
-- it can be demonstrated how the product will generate probable future economic benefits;
-- adequate technical, financial and other resources are
available to complete the development, use and sale of the product;
and
-- expenditure attributable to the product can be reliably measured.
Development costs are currently charged against income as
incurred since the criteria for their recognition as an asset are
not met.
(g) Lease payments
Rentals payable under operating leases, which are leases where
the lessor retains a significant proportion of the risks and
rewards of the underlying asset, are charged in the consolidated
statement of comprehensive income on a straight-line basis over the
expected lease term.
Lease incentives received are recognised as an integral part of
the total lease expense over the term of the lease.
(h) Finance income
Finance income comprises interest income on funds invested.
Interest income is recognised as interest accrues using the
effective interest rate method.
(i) Income tax
Income tax expense comprises current and deferred tax. Income
tax expense is recognised in the consolidated statement of
comprehensive income except to the extent that it relates to items
recognised directly in equity or in other comprehensive income.
Current income tax assets and liabilities for the current and
prior periods are measured at the amount expected to be recovered
from or paid to, the tax authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or
substantively enacted by the reporting date.
Deferred income tax is recognised on all temporary differences
arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements with the following
exceptions:
-- where the temporary difference arises from the initial
recognition of goodwill or of an asset or liability in a
transaction that is not a business combination, that at the time of
the transaction affects neither accounting nor taxable profit nor
loss; and
-- in respect of taxable temporary differences associated with
investments in subsidiaries where the timing of the reversal of the
temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable
future.
Deferred income tax assets and liabilities are measured on an
undiscounted basis using the tax rates and tax laws that have been
enacted or substantially enacted by the date and which are expected
to apply when the related deferred tax asset is realised or the
deferred tax liability is settled.
Deferred income tax assets are recognised to the extent that it
is probable that future taxable profits will be available against
which differences can be utilised. An asset is not recognised to
the extent that the transfer of economic benefits in the future is
uncertain.
(j) Tangible fixed assets
Property, plant and equipment assets are recognised initially at
cost. After initial recognition, these assets are carried at cost
less any accumulated depreciation and any accumulated impairment
losses. Cost comprises the aggregate amount paid and the fair value
of any other consideration given to acquire the asset and includes
costs directly attributable to making the asset capable of
operating as intended.
Depreciation is computed by allocating the depreciable amount of
an asset on a systematic basis over its useful life and is applied
separately to each identifiable component.
The following bases and rates are used to depreciate classes of
assets:
Building improvements - straight line over remainder of lease period
Office equipment, fixtures and fittings - straight line over three years
The carrying values of property, plant and equipment are
reviewed for impairment if events or changes in circumstances
indicate that the carrying value may not be recoverable, and are
written down immediately to their recoverable amount. Useful lives
and residual values are reviewed annually and where adjustments are
required these are made prospectively.
A property, plant and equipment item is derecognised on disposal
or when no future economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising on the
derecognition of the asset is included in the consolidated
statement of comprehensive income in the period of
derecognition.
(k) Intangible assets
Intangible assets acquired either as part of a business
combination or from contractual or other legal rights are
recognised separately from goodwill provided they are separable and
their fair value can be measured reliably. This includes the costs
associated with acquiring and registering patents in respect of
intellectual property rights.
Where intangible assets recognised have finite lives, after
initial recognition their carrying value is amortised on a
straight-line basis over those lives. The nature of those
intangibles recognised and their estimated useful lives are as
follows:
Patents - straight line over 20 years
IP assets - straight line over five years
Software - straight line over five years
(l) Goodwill
Goodwill is stated at cost less any accumulated impairment
losses. Goodwill is allocated to cash-generating units and is not
amortised but is tested annually for impairment.
(m) Impairment of assets
At each reporting date the Group reviews the carrying value of
its plant, equipment, intangible assets and goodwill to determine
whether there is an indication that these assets have suffered an
impairment loss. If any such indication exists, or when annual
impairment testing for an asset is required, the Group makes an
assessment of the asset's recoverable amount.
An asset's recoverable amount is the higher of an asset's or
cash-generating unit's fair value less costs to sell and its value
in use and is determined for an individual asset, unless the asset
does not generate cash flows that are largely independent of those
from other assets or groups of assets. Where the carrying value of
an asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less
costs of disposal, an appropriate valuation model is used, these
calculations corroborated by valuation multiples, or other
available fair value indicators. Impairment losses on continuing
operations are recognised in the consolidated statement of
comprehensive income in those expense categories consistent with
the function of the impaired asset.
An assessment is made at each reporting date as to whether there
is any indication that previously recognised impairment losses may
no longer exist or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously recognised
impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount since
the last impairment loss was recognised. If that is the case the
carrying amount of the asset is increased to its recoverable
amount. That increased amount cannot exceed the carrying amount
that would have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior years. Such
reversal is recognised in the consolidated statement of
comprehensive income unless the asset is carried at its revalued
amount, in which case the reversal is treated as a valuation
increase. After such a reversal the depreciation charge is adjusted
in future periods to allocate the asset's revised carrying amount,
less any residual value, on a systematic basis over its remaining
useful life.
The carrying values of plant, equipment, intangible assets and
goodwill as at the reporting date have not been subjected to
impairment charges.
(n) Investments in subsidiaries
Investments in subsidiaries are stated in the Company statement
of financial position at cost less provision for any
impairment.
(o) Trade and other receivables
Trade receivables, which generally have 30 to 60 day terms, are
recognised and carried at the lower of their original invoiced
value and recoverable amount. The time value of money is not
material.
Provision is made when there is objective evidence that the
Group will not be able to recover balances in full. Significant
financial difficulties faced by the customer, probability that the
customer will enter bankruptcy or financial reorganisation and
default in payments are considered indicators that the trade
receivable is impaired. The amount of the provision is the
difference between the asset's carrying amount and the present
value of estimated future cash flows, discounted at the original
effective interest rate. The carrying value of the asset is reduced
through the use of an allowance account, and the amount of the loss
is recognised in the consolidated statement of comprehensive income
within administrative expenses.
When a trade receivable is uncollectable, it is written off
against the allowance account for trade receivables.
(p) Cash, cash equivalents, short-term investments and cash on
deposit
Cash and cash equivalents comprise cash at hand and deposits
with maturities of three months or less. Short-term investments and
cash on deposit comprise deposits with maturities of more than
three months, but no greater than 12 months.
(q) Trade and other payables
Trade and other payables are non-interest bearing and are
initially recognised at fair value. They are subsequently measured
at amortised cost using the effective interest rate method.
(r) Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event and
it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
The expense relating to any provision is presented in the
consolidated statement of comprehensive income, net of any expected
reimbursement, but only where recoverability of such reimbursement
is virtually certain.
Provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risk specific to the liability.
Where discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
There were no provisions at 31 July 2017 (2016: nil).
(s) Financial assets and liabilities
Financial assets and liabilities are recognised when the Group
becomes party to the contracts that give rise to them and are
classified as financial assets and liabilities at fair value
through the consolidated statement of comprehensive income. The
Group determines the classification of its financial assets and
liabilities at initial recognition and re-evaluates this
designation at each financial year end.
A financial asset or liability is generally derecognised when
the contract that gives rise to it is settled, sold, cancelled or
expires.
At the year end, the Group had no financial assets or
liabilities designated at fair value through the consolidated
statement of comprehensive income (2016: GBPnil).
(t) Classification of financial instruments issued by the
Group
Following the adoption of IAS 32 financial instruments issued by
the Group are treated as equity only to the extent that they meet
the following two conditions:
-- they include no contractual obligations upon the Group to
deliver cash or other financial assets or to exchange financial
assets or financial liabilities with another party under conditions
that are potentially unfavourable to the Group; and
-- where the instrument will or may be settled in the Company's
own equity instruments, it is either a non-derivative that includes
no obligation to deliver a variable number of the Company's own
equity instruments or is a derivative that will be settled by the
Company's exchanging a fixed amount of cash or other financial
assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of
issue are classified as a financial liability. Where the instrument
so classified takes the legal form of the Company's own shares, the
amounts presented in these financial statements for called up share
capital and share premium account exclude amounts in relation to
those shares.
(u) Share capital
Proceeds on issue of shares are included in shareholders'
equity, net of transaction costs. The carrying amount is not
remeasured in subsequent years.
(v) Share-based payments
Equity-settled share-based payment transactions are measured
with reference to the fair value at the date of grant, recognised
on a straight-line basis over the vesting period, based on the
Group's estimate of shares that will eventually vest. Fair value is
measured using a suitable option pricing model.
At each reporting date before vesting, the cumulative expense is
calculated, representing the extent to which the vesting period has
expired and management's best estimate of the achievement or
otherwise of non-market conditions and the number of equity
instruments that will ultimately vest. The movement in cumulative
expense since the previous reporting date is recognised in the
consolidated statement of comprehensive income, with a
corresponding entry in equity.
Where the terms of an equity-settled award are modified or a new
award is designated as replacing a cancelled or settled award, the
cost based on the original award terms continues to be recognised
over the original vesting period. In addition, an expense is
recognised over the remainder of the new vesting period for the
incremental fair value of any modification, based on the difference
between the fair value of the original award and the fair value of
the modified award, both as measured on the date of the
modification. No reduction is recognised if this difference is
negative.
Where awards are granted to the employees of a subsidiary
company, the fair value of the awards at grant date is recorded in
the Company's financial statements as an increase in the value of
the investment with a corresponding increase in equity via the
share-based payment reserve.
(w) Defined contribution pension scheme
The Group operates a defined contribution pension scheme. The
assets of the scheme are held separately from those of the Group in
an independently administered fund. The amounts charged against
profits represent the contributions payable to the scheme in
respect of the accounting period.
(x) New accounting standards and interpretations
A number of new standards, amendments to standards and
interpretations have been endorsed by the EU and are effective for
annual periods commencing on or after 1 January 2017 or ending 31
July 2018 or thereafter and have not been applied in preparing
these consolidated financial statements and those that are relevant
to the Group are summarised below. None of these are expected to
have a significant effect on the consolidated financial statements
of the Group in the period of initial application.
The following standards and interpretations have an effective
date after the date of these financial statements.
EU effective date
--------------------------------------------------------------------
IFRS 9 Financial Instruments 1 January
2018
--------------------------------------------------- ---------------
IFRS 15 Revenue from Contracts with Customers 1 January
2018
--------------------------------------------------- ---------------
Effective date of IFRS 15 - Amendment to IFRS 1 January
15 2018
--------------------------------------------------- ---------------
Accounting for Acquisitions of Interests in 1 January
Joint Operations - Amendment to IFRS 11 2016
--------------------------------------------------- ---------------
Clarification of Acceptable Methods of Depreciation 1 January
and Amortisation - Amendments to IAS 16 and 2016
IAS 38
--------------------------------------------------- ---------------
Equity Method in Separate Financial Statements 1 January
- Amendments to IAS 27 2016
--------------------------------------------------- ---------------
Annual Improvements to IFRS - 2012-2014 Cycle 1 January
2016
--------------------------------------------------- ---------------
Investment Entities: Applying the Consolidation 1 January
Exception - Amendments to IFRS 10, IFRS 12 2016
and IAS 28
--------------------------------------------------- ---------------
Disclosure Initiative - Amendment to IAS 1 1 January
2016
--------------------------------------------------- ---------------
Amendments to IFRS 4: Applying IFRS 9 Financial To be confirmed
Instruments with IFRS 4 Insurance Contracts
--------------------------------------------------- ---------------
4. Acquisitions of businesses
Acquisition of subsidiary
On 1 March 2016, the Group acquired all of the ordinary shares
in Adorial Limited together with its subsidiaries for a
consideration of GBP1,670,700, of which GBP1,598,700 was satisfied
by the issue of 1,508,207 ordinary shares at a price of 106 pence,
being a 3% premium to the closing price of a C4XD share on 29
February 2016, and GBP72,000 in cash. The privately held company
has a key proprietary genetic technology platform, Taxonomy3(R) ,
for the identification of novel drug targets.
In the five months to 31 July 2016 the subsidiary contributed a
pre-tax loss of GBP75,000 to the consolidated pre-tax loss for the
year. If the acquisition had occurred on 1 August 2015, Group
revenue would have been unchanged, as Adorial currently has no
revenue, and the pre-tax loss would have been an estimated
GBP75,000 higher than currently shown. In determining these
amounts, management has assumed that the fair value adjustments
that arose on the date of acquisition would have been the same if
the acquisition occurred on 1 August 2015.
Effect of acquisition
The acquisition had the following effect on the Group's assets
and liabilities at 31 July 2016.
Recognised
values on
acquisition
GBP000
------------------------------------------------
Acquiree's net assets at the acquisition date
Intangible assets - IP assets 600
Trade and other receivables 1
Cash and cash equivalents 5
Trade and other payables (127)
----------------------------------------- -----
Net identifiable assets and liabilities 479
----------------------------------------- -----
Consideration paid
Cash 72
Equity issued - see above 1,599
----------------------------------------- -----
Total consideration 1,671
----------------------------------------- -----
Goodwill 1,192
----------------------------------------- -----
Goodwill has arisen on the acquisition due to the excess of the
consideration paid over the net assets acquired.
The Group incurred acquisition-related professional fees of
GBP68,000, which were included in administrative expenses in the
Group's consolidated statement of comprehensive income in the prior
year.
5. Segmental information
Operating segments
At 31 July 2017 the Group operated as one segment, being the
provision of new technologies to improve the drug discovery process
for novel small molecule therapies. This is the level at which
operating results are reviewed by the chief operating decision
maker (i.e. the CEO) to make decisions about resources, and for
which financial information is available. All revenues have been
generated from continuing operations and are from external
customers.
31 July 31 July
2017 2016
GBP000 GBP000
------------------------------------------------------ -------
Analysis of revenue
Amounts earned under joint development agreements 143 279
------------------------------------------------- --- -------
143 279
------------------------------------------------------ -------
Included within amounts earned under joint development
agreements is revenue from one material customer of GBP130,000
(2016: two material customers of GBP128,000 and GBP106,000
respectively).
The Group operates in two main geographic areas, although both
are managed in the UK. The Group's revenue per geographical segment
based on the customer's location is as follows:
31 July 31 July
2017 2016
GBP000 GBP000
-------------------------- -------
Revenue
UK 143 151
Europe (excluding UK) - 128
--------------------- --- -------
143 279
-------------------------- -------
All the Group's assets are held in the UK and all of its capital
expenditure arises in the UK.
6. Operating loss
31 July 31 July
2017 2016
The Group GBP000 GBP000
--------------------------------------------------- ------- -------
Operating loss is stated after charging/(crediting):
Depreciation of property, plant and equipment
(see note 11) 44 33
Amortisation of intangible assets (see note
12) 135 55
Research and development expense* 6,100 5,239
Cost of inventories recognised as an expense
(included in cost of sales) 3 12
Grant income (117) (65)
Operating lease rentals:
Land and buildings 201 62
--------------------------------------------------- ------- -------
Auditors' remuneration
Audit services:
- Fees payable to Company auditors for the
audit of the parent and the consolidated accounts 35 25
Fees payable in respect of the audit of subsidiary
companies:
- Auditing the accounts of subsidiaries pursuant
to legislation 15 25
- Other services 6 4
--------------------------------------------------- ------- -------
Total auditors' remuneration 56 54
--------------------------------------------------- ------- -------
* Included within research and development expense are staff
costs totalling GBP2,286,000 (2016: GBP1,535,000) also included in
note 7.
7. Staff costs and numbers
31 July 31 July
2017 2016
GBP000 GBP000
--------------------------------------------------- --------
Wages and salaries 2,605 1,784
Social security costs 351 206
Pension contributions 213 101
Share-based payments 150 59
------------------------------------------ ------- --------
3,319 2,150
------------------------------------------ ------- --------
Directors' remuneration (including benefits in kind)
included in the aggregate remuneration above comprised:
Emoluments for qualifying services 460 468
------------------------------------------ ------- --------
Directors' emoluments (excluding social security costs, but
including benefits in kind) disclosed above include GBP174,000 paid
to the highest paid Director (2016: GBP297,000). An analysis of the
highest paid Director's remuneration is included in the Directors'
remuneration report.
Retirement benefits are accruing to two Directors (2016: four
Directors).
The average number of employees during the year (including
Directors) was as follows:
31 July 31 July
2017 2016
The Group Number Number
-------------------- ------- -------
Directors 6 4
Technological staff 30 23
Administrative staff 6 1
-------------------- ------- -------
42 28
----------------------------- -------
8. Finance income and expense
31 July 31 July
2017 2016
The Group GBP000 GBP000
------------------------ ------- -------
Finance income
Bank interest receivable 3 32
------------------------ ------- -------
3 32
--------------------------------- -------
Bank interest receivable includes GBPnil (2016: GBPnil), which
is receivable after the year end.
9. Income tax
The tax credit is made up as follows:
31 July 31 July
2017 2016
The Group GBP000 GBP000
------------------------------------------- ------- -------
Current income tax
UK corporation tax losses in the year - -
Research and development income tax credit
receivable (1,700) (1,400)
Adjustment in respect of prior years (8) (36)
------------------------------------------- ------- -------
Total current income tax (1,708) (1,436)
------------------------------------------- ------- -------
The tax assessed for the year varies from the standard rate of
corporation tax as explained below:
31 July 31 July
2017 2016
The Group GBP000 GBP000
--------------------------------------------------- ------- -------
Loss on ordinary activities before taxation (8,490) (6,757)
--------------------------------------------------- ------- -------
Tax at standard rate of 19.67% (2016: 20.67%) (1,670) (1,351)
Effects of:
Expenses not deductible for tax purposes 27 25
Movement in unprovided deferred tax - (12)
Surrender of research and development relief
for repayable tax credit 1,003 835
Research and development tax credit receivable (1,700) (1,400)
Share options exercised (CTA 2009 Pt 12 deduction) (142) -
Tax losses carried forward 782 503
Adjustment in respect of prior years (8) (36)
--------------------------------------------------- ------- -------
Tax credit in income statement (1,708) (1,436)
--------------------------------------------------- ------- -------
Reductions in the main rate of corporation tax from 20% to 19%
(effective from 1 April 2017) and to 18% (effective 1 April 2020)
were substantively enacted on 26 October 2015.
An additional reduction to 17% (effective 1 April 2020) was
substantively enacted on 6 September 2016. This will reduce the
Group's future tax charge accordingly.
The Group has accumulated losses available to carry forward
against future trading profits. The estimated value of the deferred
tax asset, measured at a standard rate of 17% (2016: 18%) is
GBP1,425,000 (2016: GBP830,000), of which GBPnil (2016: GBPnil) has
been recognised. Remaining tax losses have not been recognised as
an asset as it is not probable that future taxable profits will be
available against which the unused tax losses can be utilised.
The Group also has a deferred tax liability being accelerated
capital allowances, for which the tax, measured at a standard rate
of 17% (2016: 18%), is GBP30,000 (2016: GBP32,000).
The Group has a deferred tax asset for share-based payments, for
which the tax, measured at a standard rate of 17% (2016: 18%), is
GBP44,000 (2016: GBP20,000).
The net deferred tax asset of GBP14,000 has not been recognised
(2016: the net deferred tax liability of GBP12,000 was not
recognised as it was covered by accumulated tax losses).
10. Earnings per share
31 July 31 July
2017 2016
The Group GBP000 GBP000
----------------------------------------- ----------- ----------
Loss for the financial year attributable
to equity shareholders (6,782) (5,321)
----------------------------------------- ----------- ----------
Weighted average number of shares
Ordinary shares in issue 40,171,732 31,616,625
----------------------------------------- ----------- ----------
Basic loss per share (pence) (16.88) (16.83)
----------------------------------------- ----------- ----------
Diluted loss per share has not been presented above as the
effect of share options issued is anti-dilutive.
11. Property, plant and equipment
Office
equipment,
fixtures
and Building
fittings improvements Total
The Group GBP000 GBP000 GBP000
------------------------- ----------- ------------- -------
Cost:
At 31 July 2015 91 38 129
Additions 42 - 42
------------------------- ----------- ------------- -------
At 31 July 2016 133 38 171
Additions 40 - 40
------------------------- ----------- ------------- -------
At 31 July 2017 173 38 211
------------------------- ----------- ------------- -------
Depreciation:
At 31 July 2015 41 3 44
Provided during the year 25 8 33
------------------------- ----------- ------------- -------
At 31 July 2016 66 11 77
Provided during the year 36 8 44
------------------------- ----------- ------------- -------
At 31 July 2017 102 19 121
------------------------- ----------- ------------- -------
Net book value:
At 31 July 2017 71 19 90
------------------------- ----------- ------------- -------
At 31 July 2016 67 27 94
------------------------- ----------- ------------- -------
The Company has no property, plant and equipment.
12. Intangible assets
Patents IP assets Software Total
The Group GBP000 GBP000 GBP000 GBP000
----------------------------------------- ------- --------- -------- -------
Cost:
At 31 July 2015 87 - - 87
Additions - - 50 50
Additions - acquisition through business
combinations - 600 - 600
----------------------------------------- ------- --------- -------- -------
At 31 July 2016 87 600 50 737
Additions 51 - - 51
----------------------------------------- ------- --------- -------- -------
At 31 July 2017 138 600 50 788
----------------------------------------- ------- --------- -------- -------
Amortisation:
At 31 July 2015 28 - - 28
Provided during the year 5 50 - 55
----------------------------------------- ------- --------- -------- -------
At 31 July 2016 33 50 - 83
Provided during the year 5 120 10 135
----------------------------------------- ------- --------- -------- -------
At 31 July 2017 38 170 10 218
----------------------------------------- ------- --------- -------- -------
Net book value:
At 31 July 2017 100 430 40 570
----------------------------------------- ------- --------- -------- -------
At 31 July 2016 54 550 50 654
----------------------------------------- ------- --------- -------- -------
Patents are amortised on a straight-line basis over 20 years.
Amortisation provided during the period is recognised in
administrative expenses. The Group does not believe that any of its
patents in isolation is material to the business.
IP assets and software are amortised on a straight-line basis
over five years. Amortisation provided during the period is
recognised in administrative expenses.
The recoverable amount of the combined value of intangible
assets and goodwill exceeds the carrying value by 139%. The key
assumptions considered most sensitive for the value-in-use
calculations are those regarding the discount rate applied to the
net present value calculations, the success rates of the project
and the total expected licence value. Management has used a
conservative discount rate of 25%. Due to the headroom which exists
between the recoverable amount and the carrying value, there is no
reasonable possible change in these assumptions that would cause
the carrying value to exceed its recoverable amount.
The Company has no intangible assets.
13. Goodwill
Purchased
goodwill Total
The Group GBP000 GBP000
--------------------------------- --------- -------
Cost:
At 31 July 2015 - -
Purchase of Adorial 1,192 1,192
--------------------------------- --------- -------
At 31 July 2016 and 31 July 2017 1,192 1,192
--------------------------------- --------- -------
Impairment:
At 31 July 2015 - -
Provided during the year - -
--------------------------------- --------- -------
At 31 July 2016 - -
Provided during the year - -
--------------------------------- --------- -------
At 31 July 2017 - -
--------------------------------- --------- -------
Net book value:
At 31 July 2017 1,192 1,192
--------------------------------- --------- -------
At 31 July 2016 1,192 1,192
--------------------------------- --------- -------
The goodwill which originated in the prior period is explained
in note 4. Goodwill is allocated to one cash-generating unit being
that described in note 5. The value at which goodwill is carried is
reviewed annually. No impairment charge was provided during the
period.
The recoverable amount of the combined value of intangible
assets and goodwill exceeds the carrying value by 139%. The key
assumptions considered most sensitive for the value-in-use
calculations are those regarding the discount rate applied to the
net present value calculations, the success rates of the project
and the total expected licence value. Management has used a
conservative discount rate of 25%. Due to the headroom which exists
between the recoverable amount and the carrying value, there is no
reasonable possible change in these assumptions that would cause
the carrying value to exceed its recoverable amount.
The Company has no goodwill.
14. Investment in subsidiaries
Shares Loans Total
The Company GBP000 GBP000 GBP000
-------------------------------------------- ------- ------- -------
At 31 July 2016 1,871 81 1,952
Increase in respect of share-based payments - 150 150
-------------------------------------------- ------- ------- -------
At 31 July 2017 1,871 231 2,102
-------------------------------------------- ------- ------- -------
By subsidiary
----------------------------------------------
C4X Discovery Limited 200 231 431
C4X Drug Discovery Limited - - -
Adorial Limited 1,671 - 1,671
--------------------------- ----- --- -----
At 31 July 2017 1,871 231 2,102
--------------------------- ----- --- -----
Country of Class of 31 July
Subsidiary undertakings incorporation Principal activity shares held 2017
------------------------ --------------- ------------------- ------------- -------
C4X Discovery England and Research and
Limited Wales development Ordinary 100%
C4X Drug Discovery England and
Limited Wales Dormant company Ordinary 100%
England and
Adorial Limited Wales Drug discovery Ordinary 100%
Adorial Technologies England and Research and
Limited Wales development Ordinary 100%
Adorial Pharma England and Research and
Limited Wales development Ordinary 100%
------------------------ --------------- ------------------- ------------- -------
15. Trade and other receivables
31 July 31 July 31 July 31 July
2017 2017 2016 2016
Group Company Group Company
GBP000 GBP000 GBP000 GBP000
-------------------------------------- -------- ------- --------
Trade receivables 85 - 39 -
Prepayments 200 - 145 -
Inter-company short-term loan to
subsidiary - 23,462 - 12,075
Other receivables 263 - 245 -
-------------------------------- ---- -------- ------- --------
548 23,462 429 12,075
-------------------------------------- -------- ------- --------
The Directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
All trade receivables are denominated in Sterling.
There are no formal terms for the repayment of inter-company
loans, none of which bear interest and all of which are repayable
on demand.
Other receivables include GBP199,000 VAT receivable (2016:
GBP243,000).
16. Income tax asset
31 July 31 July 31 July 31 July
2017 2017 2016 2016
Group Company Group Company
GBP000 GBP000 GBP000 GBP000
------------------------------------------- -------- ------- --------
Research and development income tax
credit receivable 1,700 - 1,400 -
----------------------------------- ------ -------- ------- --------
1,700 - 1,400 -
------------------------------------------- -------- ------- --------
17. Cash, cash equivalents and deposits
31 July 31 July 31 July 31 July
2017 2017 2016 2016
Group Company Group Company
GBP000 GBP000 GBP000 GBP000
--------------------------------- -------- ------- --------
Cash and cash equivalents 6,031 1 1,328 1
------------------------- ------ -------- ------- --------
6,031 1 1,328 1
--------------------------------- -------- ------- --------
Cash and cash equivalents at 31 July 2017 include deposits with
original maturity of three months or less of GBPnil (2016:
GBPnil).
An analysis of cash, cash equivalents and deposits by
denominated currency is given in note 25.
18. Trade and other payables
31 July 31 July 31 July 31 July
2017 2017 2016 2016
Group Company Group Company
GBP000 GBP000 GBP000 GBP000
---------------------- -------- ------- --------
Current payables 700 - 392 -
Other payables 101 - 116 -
Deferred revenue - - 83 -
Accruals 270 - 201 -
---------------- ---- -------- ------- --------
1,071 - 792 -
---------------------- -------- ------- --------
19. Issued equity capital
Deferred Ordinary A ordinary Share Deferred Share
shares shares shares capital shares premium Total
The Company Number Number Number GBP000 GBP000 GBP000 GBP000
----------------------- --------- ---------- ----------- --------- --------- --------- --------
Allotted, called up and fully paid shares:
As at 31 July 2015 2,025,000 30,988,550 - 310 2,025 10,013 12,348
----------------------- --------- ---------- ----------- --------- --------- --------- --------
Issue of share capital - 1,508,207 - 15 - 1,584 1,599
----------------------- --------- ---------- ----------- --------- --------- --------- --------
Ordinary and deferred
shares as at 31 July
2016 2,025,000 32,496,757 - 325 2,025 11,597 13,947
----------------------- --------- ---------- ----------- --------- --------- --------- --------
Issue of share capital - 14,058,330 - 140 - 11,939 12,079
Expenses of placing - - - - - (692) (692)
----------------------- --------- ---------- ----------- --------- --------- --------- --------
Ordinary and deferred
shares as at 31 July
2017 2,025,000 46,555,087 - 465 2,025 22,844 25,334
----------------------- --------- ---------- ----------- --------- --------- --------- --------
Share Deferred Share
capital shares premium Total
The Group GBP000 GBP000 GBP000 GBP000
----------------------------------- -------- -------- -------- -------
Allotted, called up and fully paid ordinary shares
of 1 pence:
As at 31 July 2015 310 2,025 10,013 12,348
Issue of share capital 15 - 1,584 1,599
----------------------------------- -------- -------- -------- -------
As at 31 July 2016 325 2,025 11,597 13,947
Issue of share capital 140 - 11,939 12,079
Expenses of placing - - (692) (692)
----------------------------------- -------- -------- -------- -------
Ordinary and deferred shares as at
31 July 2017 465 2,025 22,844 25,334
----------------------------------- -------- -------- -------- -------
On 1 March 2016, together with GBP72,000 cash, 1,508,207 shares
were issued at a price of 106 pence, being a 3% premium to the
closing mid-market price of a C4XD share on 29 February 2016, for
the purpose of acquiring the whole of the share capital of Adorial
Limited and its subsidiaries.
On 6 September 2016 4,901,961 shares were issued in a placing at
a price of 102 pence resulting in share proceeds of GBP5,000,000.
Share issue costs of GBP285,000 were incurred and have been
deducted from share premium.
On 14 March 2017 8,235,294 shares were issued in a placing at a
price of 85 pence resulting in share proceeds of GBP7,000,000.
Share issue costs of GBP407,000 were incurred and have been
deducted from share premium.
On 8 June 2017 34,200 ordinary shares were issued in
satisfaction of loans made to Adorial Limited by its then
directors, now employees of C4XD. The share price on the day of
issue was 87 pence.
On 8 June 2017 886,875 ordinary shares were issued on exercise
of options originally granted on 27 May 2014 at 5.58 pence per
share.
The deferred shares of GBP1 carry no right to participate in
dividends in respect of any financial year, until there shall have
been paid to the holders of the ordinary shares GBP1 per ordinary
share in respect of the relevant financial year, subject thereto,
the deferred shares and the ordinary shares shall rank equally in
respect of any further dividends in respect of the relevant
financial year as if they constituted one class of share.
20. Share-based payment reserve
The Group GBP000
--------------------- ------
At 31 July 2015 51
Share-based payments 59
--------------------- ------
At 31 July 2016 110
Share-based payments 150
--------------------- ------
At 31 July 2017 260
--------------------- ------
The Company GBP000
--------------------- ------
At 31 July 2015 22
Share-based payments 59
--------------------- ------
At 31 July 2016 81
Share-based payments 150
--------------------- ------
At 31 July 2017 231
--------------------- ------
The share-based payment reserve accumulates the corresponding
credit entry in respect of share-based payment charges. Movements
in the reserve are disclosed in the consolidated statement of
changes in equity.
A charge of GBP150,000 has been recognised in the consolidated
statement of comprehensive income for the year (2016:
GBP59,000).
Share option schemes
The Group operates the following share option schemes, all of
which are operated as Enterprise Management Incentive ("EMI")
schemes in so far as the share options being issued meet the EMI
criteria as defined by HM Revenue & Customs. Share options
issued that do not meet EMI criteria are issued as unapproved share
options, but are subject to the same exercise performance
conditions.
C4X Discovery Holdings plc Long Term Incentive Plan ("LTIP")
Grant in September 2009
Share options were granted to a staff member on 29 September
2009. The options granted are exercisable in the event of the
listing of the Company, its acquisition or at the absolute
discretion of the Board. The exercise price was set at 2.05 pence
(the original exercise price of GBP22.00 was adjusted for a
subdivision of 1,075 share options in C4X Discovery Holdings plc
for each share option originally held in C4X Discovery Limited),
being the estimated fair value of the shares on the day preceding
the issue of the share options. The fair value benefit is measured
using a Black Scholes model, taking into account the terms and
conditions upon which the share options were issued.
Grant in August 2012
Share options were granted to staff on 28 August 2012. The
options granted are exercisable in the event of the listing of the
Company, its acquisition or at the absolute discretion of the
Board. The exercise price was set at 5.58 pence (the original
exercise price of GBP60.00 was adjusted for a subdivision of 1,075
share options in C4X Discovery Holdings plc for each share option
originally held in C4X Discovery Limited), being the estimated fair
value of the shares on the day preceding the issue of the share
options. The fair value benefit is measured using a Black Scholes
model, taking into account the terms and conditions upon which the
share options were issued.
Grant in July 2013
Share options were granted to staff on 4 July 2013. The options
granted are exercisable in the event of the listing of the Company,
its acquisition or at the absolute discretion of the Board. The
exercise price was set at 5.58 pence (the original exercise price
of GBP60.00 was adjusted for a subdivision of 1,075 share options
in C4X Discovery Holdings plc for each share option originally held
in C4X Discovery Limited), being the estimated fair value of the
shares on the day preceding the issue of the share options. The
fair value benefit is measured using a Black Scholes model, taking
into account the terms and conditions upon which the share options
were issued.
Grant in May 2014
Share options were granted to staff on 27 May 2014. The options
granted are exercisable in the event of the listing of the Company,
its acquisition or at the absolute discretion of the Board. The
exercise price was set at 5.58 pence (the original exercise price
of GBP60.00 was adjusted for a subdivision of 1,075 share options
in C4X Discovery Holdings plc for each share option originally held
in C4X Discovery Limited), being the estimated fair value of the
shares on the day preceding the issue of the share options. The
fair value benefit is measured using a Black Scholes model, taking
into account the terms and conditions upon which the share options
were issued.
Grant in June 2015
Share options were granted to staff and Directors on 8 June
2015. The options granted are exercisable at any time between three
years and ten years of them being granted. There are no performance
criteria attached to the options. The exercise price was set at
100.0 pence, being the price at which shares were placed in the IPO
in October 2014. The fair value benefit is measured using a Black
Scholes model, taking into account the terms and conditions upon
which the share options were issued.
Grant in December 2015
Share options were granted to a Director on 8 December 2015. The
options granted are exercisable, subject to meeting certain
performance criteria, at any time between three years and ten years
of them being granted. The exercise price was set at 77 pence,
being the average of the mid-market closing price over the three
days prior to 8 December 2015. The fair value benefit is measured
using a Black Scholes model, taking into account the terms and
conditions upon which the share options were issued.
Grant in November 2016
Share options were granted to staff and a Director on 23
November 2016. The options granted are exercisable, at any time
between three years and ten years of them being granted. The
exercise price was set at 105 pence, being the average of the
mid-market closing price over the three days prior to 23 November
2016. The fair value benefit is measured using a Black Scholes
model, taking into account the terms and conditions upon which the
share options were issued.
Grant in February 2017
Share options were granted to staff and a Director on 1 February
2017. The options granted are exercisable, at any time between
three years and ten years of them being granted. The exercise price
was set at 91 pence, being the average of the mid-market closing
price over the three days prior to 1 February 2017. The fair value
benefit is measured using a Black Scholes model, taking into
account the terms and conditions upon which the share options were
issued.
Grant in May 2017
Share options were granted to staff on 17 May 2017. The options
granted are exercisable, at any time between three years and ten
years of them being granted. The exercise price was set at 90
pence, being the average of the mid-market closing price over the
three days prior to 17 May 2017. The fair value benefit is measured
using a Black Scholes model, taking into account the terms and
conditions upon which the share options were issued.
Share options are awarded to management and key staff as a
mechanism for attracting and retaining key members of staff. The
options are granted at no lower than either: (i) market price on
the day preceding grant; or (ii) in the event of abnormal price
movements at an average market price for the week preceding grant
date. Options may be granted at prices higher than the market price
on the day preceding grant where the Board believes it is
appropriate to do so. These options vest over a three year period
from the date of grant and are exercisable until the tenth
anniversary of the award. Exercise of the award is subject to the
employee remaining a full-time member of staff at the point of
exercise. The fair value benefit is measured using a binomial
valuation model, taking into account the terms and conditions upon
which the share options were issued.
The following tables illustrate the number and weighted average
exercise prices of, and movements in, share options during the
year.
2017 2016
The Group and Company Number Number
-------------------------- --------- ---------
Outstanding at 1 August 2,657,325 2,177,325
Granted during the year 1,802,464 500,000
Exercised during the year (886,875) -
Lapsed/cancelled (387,500) (20,000)
-------------------------- --------- ---------
Outstanding at 31 July 3,185,414 2,657,325
-------------------------- --------- ---------
Exercisable at 31 July 812,700 1,699,575
-------------------------- --------- ---------
During the year ended 31 July 2017, 886,875 options were
exercised (2016: nil).
Weighted average exercise price of options
2017 2016
The Group and Company Pence Pence
-------------------------- ------ ------
Outstanding at 1 August 32.33 22.55
Granted during the year 99.36 77.00
Exercised during the year 5.58 -
Forfeited/cancelled 77.00 83.50
-------------------------- ------ ------
Outstanding at 31 July 75.67 32.33
-------------------------- ------ ------
The weighted average fair value of options granted during the
year to 31 July 2017 was 99.36 pence (2016: 77.00 pence). The range
of exercise prices for options outstanding at the end of the year
was 2.05 pence-105.00 pence (2016: 2.05 pence-83.50 pence).
For the share options outstanding as at 31 July 2017, the
weighted average remaining contractual life is 8.1 years (2016: 7.8
yearsf).
During the year ended 31 July 2017, 886,875 options were
exercised (2016: none).
The following table lists the inputs to the models used for the
years ended 31 July 2017 and 31 July 2016.
The Group and Company 2017 2016
------------------------------------------ ----------- -----------
Expected volatility (%) 52.5% 52.5%
Risk-free interest rate (%) 0.44%-1.00% 0.78%-1.75%
Expected life of options (year's average) 3 years 3 years
Weighted average exercise price (pence) 5.58 n/a
Weighted average share price at date of
grant (pence) 99.36 77.00
------------------------------------------ ----------- -----------
The expected life of the options is based on historical data and
is not necessarily indicative of exercise patterns that may occur.
The expected volatility reflects the assumption that the historical
volatility is indicative of future trends, which may also not
necessarily be the actual outcome.
No other features of options granted were incorporated into the
measurement of fair value.
21. Merger reserve
The Group GBP000
-------------------------------------------------- ------
As at 31 July 2015, 31 July 2016 and 31 July 2017 920
-------------------------------------------------- ------
The merger reserve arises as a result of the reverse acquisition
requirements of IFRS 3, meaning the consolidated accounts are
presented as a continuation of the C4X Discovery Limited accounts
along with the share capital structure of the legal parent company
(C4X Discovery Holdings plc).
22. Capital contribution reserve
The Group GBP000
----------------------------------------------- ------
At 31 July 2015, 31 July 2016 and 31 July 2017 195
----------------------------------------------- ------
23. Revenue reserve
The Group GBP000
------------------ --------
At 31 July 2015 (5,546)
Loss for the year (5,321)
------------------ --------
At 31 July 2016 (10,867)
Loss for the year (6,782)
------------------ --------
At 31 July 2017 (17,649)
------------------ --------
24. Commitments
Operating lease commitments
The Group leases premises under non-cancellable operating lease
agreements. The future aggregate minimum lease and service charge
payments under non-cancellable operating leases are as follows:
31 July 2017 31 July
Group 2016
GBP000 Group
GBP000
------------------------------------------------- -------
Land and buildings:
Not later than one year 150 62
After one year but not more than five years 143 119
After five years - -
------------------------------------------- ---- -------
293 181
------------------------------------------------- -------
25. Financial risk management
Overview
This note presents information about the Group's exposure to
various kinds of financial risks, the Group's objectives, policies
and processes for measuring and managing risk, and the Group's
management of capital.
The Board has overall responsibility for the establishment and
oversight of the Group's risk management framework. The Executive
Directors report regularly to the Board on Group risk
management.
Capital risk management
The Group reviews its forecast capital requirements on a
half-yearly basis to ensure that entities in the Group will be able
to continue as a going concern while maximising the return to
stakeholders.
The capital structure of the Group consists of equity
attributable to equity holders of the parent, comprising issued
share capital, reserves and retained earnings as disclosed in notes
19 to 23 and in the Group consolidated statement of changes in
equity. Total equity was GBP9,060,000 at 31 July 2017 (GBP4,305,000
at 31 July 2016).
The Group is not subject to externally imposed capital
requirements.
Liquidity risk
The Group's approach to managing liquidity is to ensure that, as
far as possible, it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage
to the Group's reputation.
The Group manages all of its external bank relationships
centrally in accordance with defined treasury policies. The
policies include the minimum acceptable credit rating of
relationship banks and financial transaction authority limits. Any
material change to the Group's principal banking facility requires
Board approval. The Group seeks to mitigate the risk of bank
failure by ensuring that it maintains relationships with a number
of investment grade banks.
At the reporting date the Group was cash positive with no
outstanding borrowings.
Categorisation of financial instruments
Financial
liabilities
Loans at
and amortised
receivables cost Group Company
Financial assets/(liabilities) GBP000 GBP000 GBP000 GBP000
----------------------------------- ------------ ------------ ------- -------
31 July 2017
Trade receivables 85 - 85 -
Inter-company short-term loan to
subsidiary - - - 23,462
Cash, cash equivalents and deposits 6,031 - 6,031 1
Trade and other payables* - (801) (801) -
----------------------------------- ------------ ------------ ------- -------
6,116 (801) 5,315 23,463
------------------------------------------------- ------------ ------- -------
Loans
and Financial
receivables liabilities Group Company
Financial assets/(liabilities) GBP000 GBP000 GBP000 GBP000
----------------------------------- ------------ ------------ ------- -------
31 July 2016
Trade receivables 39 - 39 -
Inter-company short-term loan to
subsidiary - - - 12,075
Cash, cash equivalents and deposits 1,328 - 1,328 -
Trade and other payables* - (591) (591) -
----------------------------------- ------------ ------------ ------- -------
1,367 (591) 776 12,075
------------------------------------------------- ------------ ------- -------
* Excluding accruals.
The values disclosed in the above table are carrying values. The
Board considers that the carrying amount of financial assets and
liabilities approximates to their fair value.
The main risks arising from the Group's financial instruments
are credit risk and foreign currency risk. The Board of Directors
reviews and agrees policies for managing each of these risks which
are summarised below.
Credit risk
The Group's principal financial assets are cash, cash
equivalents and deposits. The Group seeks to limit the level of
credit risk on the cash balances by only depositing surplus liquid
funds with multiple counterparty banks that have investment grade
credit ratings.
The Group trades only with recognised, creditworthy third
parties. Receivable balances are monitored on an ongoing basis with
the result that the Group's exposure to bad debts is not
significant. The Group's maximum exposure is the carrying amount of
trade receivables as disclosed in note 15, which was neither past
due nor impaired. All trade receivables are ultimately overseen by
the Chief Executive Officer and are managed on a day-to-day basis
by the finance team. Credit limits are set as deemed appropriate
for the customer.
The maximum exposure to credit risk in relation to cash, cash
equivalents and deposits is the carrying value at the balance sheet
date.
Foreign currency risk
The Group is exposed to currency risk on sales and purchases
that are denominated in a currency other than the respective
functional currency of the Group. These are primarily US Dollars
("USD") and Euros. Transactions outside of these currencies are
limited.
The Group may use forward exchange contracts as an economic
hedge against currency risk, where cash flow can be judged with
reasonable certainty. Foreign exchange swaps and options may be
used to hedge foreign currency receipts in the event that the
timing of the receipt is less certain.
There were no open forward contracts as at 31 July 2017 or at 31
July 2016 and the Group did not enter into any such contracts
during 2017 nor 2016.
The split of Group assets between Sterling and other currencies
at the year end is analysed as follows:
2017 2016
GBP USD EUR Total GBP USD EUR Total
The Group GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- ------- ------- ------- ------- ------- ------- ------- -------
Cash, cash equivalents
and deposits 5,986 40 5 6,031 1,328 - - 1,328
Trade receivables 85 - - 85 39 - - 39
Trade payables (629) (20) (51) (700) (378) (12) (2) (392)
---------------------- ------- ------- ------- ------- ------- ------- ------- -------
5,442 20 (46) 5,416 989 (12) (2) 975
------------------------------- ------- ------- ------- ------- ------- ------- -------
Sensitivity analysis to movement in exchange rates
Given the immaterial net payable balances in foreign currency,
the exposure to a change in exchange rate is negligible.
Interest rate risk
As the Group has no borrowings the risk is limited to the
reduction of interest received on cash surpluses held at bank which
receive a floating rate of interest. The principal impact to the
Group is the result of interest-bearing cash and cash equivalent
balances held as set out below:
31 July 2017 31 July 2016
--------------------------- --------------------------
Fixed Floating Fixed Floating
rate rate Total rate rate Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------- -------- ------- ------- -------- -------
The Group
-------- -------- ------- ------- -------- -------
Cash, cash equivalents and
deposits - 6,031 6,031 - 1,328 1,328
--------------------------- -------- -------- ------- ------- -------- -------
The Company
Cash, cash equivalents and
deposits - 1 1 - 1 1
--------------------------- -------- -------- ------- ------- -------- -------
As the majority of cash and cash equivalents are held on
floating deposit and the overall level of interest rates is low,
the exposure to interest rate movements is immaterial.
Maturity profile
Set out below is the maturity profile of the Group's financial
liabilities at 31 July 2017 based on contractual undiscounted
payments including contractual interest.
Less
than One to
one five
year years Total
2017 GBP000 GBP000 GBP000
------------------------- ------- ------- -------
Financial liabilities
Trade and other payables* 801 - 801
------------------------- ------- ------- -------
801 - 801
---------------------------------- ------- -------
Less
than One to
one five
year years Total
2016 GBP000 GBP000 GBP000
------------------------- ------- ------- -------
Financial liabilities
Trade and other payables* 591 - 591
------------------------- ------- ------- -------
591 - 591
---------------------------------- ------- -------
* Excluding accruals. Trade and other payables are due within
three months.
The Directors consider that the carrying amount of the financial
liabilities approximates to their fair value.
As all financial assets are expected to mature within the next
12 months an aged analysis of financial assets has not been
presented.
26. Related party transactions
During the year, shareholder Aquarius Equity Partners Limited
charged the Group GBP15,450 (2016: GBP15,450) for monitoring fees
and were owed GBP1,545 at 31 July 2017 (2016: GBP1,545).
During the year, The Aquarius IV Fund LLP, a fund managed by
shareholder Aquarius Equity Partners Limited, held 2,025,000
deferred shares of GBP1 each (2016: GBP2,025,000).
During the year Harry Finch was paid GBP2,800 (2016: GBP11,550)
in connection with services he provided as a technical consultant.
No amounts were owed at the year end (2016: GBPnil).
The Group
There were no sales to, purchases from or, at the year end,
balances with any related party.
The Company
The following table summarises inter-company balances at the
year end between C4X Discovery Holdings plc and subsidiary
entities:
31 July 31 July
2017 2016
Notes GBP000 GBP000
------------------------------------ --------- --------
Short-term loans owed to C4X Discovery Holdings plc
by
C4X Discovery Limited 15 23,462 12,075
C4X Drug Discovery Limited - -
Adorial Limited - -
------------------------------------ --------- --------
23,462 12,075
----------------------------------------------- --------
There are no formal terms of repayment in place for these loans
and it has been confirmed by the Directors that the long-term loans
will not be recalled within the next 12 months.
None of the loans is interest bearing.
27. Compensation of key management personnel (including
Directors)
2017 2016
GBP000 GBP000
----------------------------------- -------
Short-term employee benefits 1,032 906
Pension costs 72 59
Share-based payments 86 45
---------------------------- ----- -------
1,190 1,010
----------------------------------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR OKQDPKBDKFBD
(END) Dow Jones Newswires
December 14, 2017 02:01 ET (07:01 GMT)
C4x Discovery (LSE:C4XD)
Historical Stock Chart
From Apr 2024 to May 2024
C4x Discovery (LSE:C4XD)
Historical Stock Chart
From May 2023 to May 2024