TIDMDMTR
RNS Number : 9054Z
DeepMatter Group PLC
06 September 2018
6 September 2018
DeepMatter Group Plc
("DeepMatter", the "Group" or the "Company")
Interim results for the six months ended 30 June 2018
DeepMatter (AIM: DMTR), the AIM quoted company focusing on
digitizing chemistry, announces its unaudited interim results for
the six months ended 30 June 2018.
Highlights:
-- On track to deliver the Company's strategic roadmap to digitize chemistry
-- Has now entered into agreements with five international
organisations for its DigitalGlassware(TM) Pioneer Programme
-- Loss after tax of GBP0.98 million (2017: loss GBP0.51 million)
-- Cash and short-term deposits at 30 June 2018 of GBP2.07
million (31 December 2017: GBP3.27 million)
-- Net assets at 30 June 2018 of GBP7.14 million (31 December 2017: GBP8.11 million)
-- Post period end, Mark Warne appointed Chief Executive Officer on 3 July 2018
Mark Warne, Chief Executive Officer of DeepMatter, said:
"Our DigitalGlassware(TM) platform brings code, structure and
order into the chemistry lab environment and enables recordable,
shareable, reproduceable chemistry whilst also championing speed,
simplicity and unhindered discovery.
The Group is progressing well with its DigitalGlassware(TM)
Pioneer Programme and, moving forward, we keenly anticipate further
deployments with key innovators. We remain focused on building
credibility, awareness and understanding of the
DigitalGlassware(TM) platform, before rolling out the platform to
the broader community."
For further information:
DeepMatter Group plc www.deepmatter.io
Mark Warne, Chief Executive Officer T: 0141 548 8156
Stockdale Securities Limited T: 020 7601 6100
Tom Griffiths/Edward Thomas
CHAIRMAN AND CHIEF EXECUTIVE'S JOINT STATEMENT
The year to date has seen important corporate and operational
developments at DeepMatter as the Company has moved from a focus on
R&D activity to its first corporate engagements. We are pleased
to report that the Group remains on track in progressing its
strategic roadmap to digitize chemistry.
In May 2018, to better represent its vision and strategy, the
Company rebranded as DeepMatter, and concurrently launched a new
website (www.deepmattergroup.io). This has been received well by
the Group's stakeholders, commercial partners and the wider
industry. The Group announced in June 2018 that Mark Warne would
join the Company full time as Chief Executive Officer, while James
Ede-Golightly, then a Non-Executive Director of the Company, would
become Non-Executive Chairman on an interim basis whilst the search
for a new Non-Executive Chairman was undertaken. This search is now
in process and we anticipate making a further announcement on this
appointment in due course.
The Group has steadily progressed adoption of its
DigitalGlassware(TM) big data and analysis platform, which helps
people involved across research and process development sectors to
perform and work together, addressing the industry need for
reproducibility in chemistry. The Company's vision is to ultimately
enable an autonomous synthesis engine, the Chemputer(TM).
DigitalGlassware(TM) comprises a powerful and easy-to-use software
interface with a unique, low footprint sensor array, which
collects, stores and processes data generated from chemical
experiments and allows access to reproducible chemistry via
internet protocols.
Shortly after the end of the period, the Group announced that it
had entered into agreements with a total of five organisations for
its DigitalGlassware(TM) Pioneer Programme (the "Pioneers"),
representing the Company's minimum target for the whole of 2018.
The Pioneers include two leading international life science reagent
and chemicals manufacturers, a world-renowned US-headquartered
research centre and two universities - one in the UK and one in
North America. Entering into agreements with this range of target
users reflects the Company's previously described plan to select a
range of companies and institutions to trial its technology,
allowing observation of technology performance in different
operating environments and locations worldwide. The Group
anticipates entering into further pioneer agreements during the
remainder of this year.
Experiments and tests using DigitalGlassware(TM) as part of the
Pioneer Programme are contributing towards context rich data
content, capable of being interrogated with artificial intelligence
and machine learning algorithms, helping to provide the chemistry
community an understanding of how it can help to improve the
outcomes of chemical processes, including precision and
reproducibility, while also discovering/enabling new synthetic
routes and chemical entities.
Scientific credibility of the Group's approach, ultimately an
important factor in the Group's industry engagements, has been
underpinned by relevant high-profile publications and Nature,
Science and PNAS by the Group's Scientific Founder, Professor Lee
Cronin FRSE FRSC, and the granting of patents assigned to the Group
under its agreement with the University of Glasgow.
Financial Review
For the half year ended 30 June 2018, the Group incurred a loss
before tax of GBP905,000 (2017: loss of GBP573,000) which less a
tax credit of GBP98,000 (2017: tax credit GBP68,000) and coupled
with a loss of GBP173,000 from discontinued operations of the
Scanning Ion Conductance Microscope ("SICM") business (2017: loss
from discontinued operations GBPnil), resulted in an overall loss
after tax of GBP980,000 (2017: loss of GBP505,000).
The Group continues to benefit from a sound balance sheet with a
cash balance at 30 June 2018 of GBP2.07 million (30 June 2017:
GBP4.28 million) compared to GBP3.27 million at 31 December 2017.
The GBP1.2 million decrease in cash during the half year is mainly
attributable to the continuing operations of the Group, in
particular research and development and overhead expenditure costs,
together with funding SICM's losses ahead of our planned exit from
this business.
Outlook
Our DigitalGlassware(TM) platform brings code, structure and
order into the chemistry lab environment and enables recordable,
shareable, reproduceable chemistry whilst also championing speed,
simplicity and unhindered discovery.
The Group is progressing well with its DigitalGlassware(TM)
Pioneer Programme and, moving forward, we keenly anticipate further
deployments with key innovators. We remain focused on building
credibility, awareness and understanding of the
DigitalGlassware(TM) platform, before rolling out the platform to
the broader community.
James Ede-Golightly (Non-Executive Chairman) and Mark Warne
(Chief Executive Officer)
6 September 2018
Company Number: 05845469
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SIX MONTHS TO 30 JUNE 2018
6 months ended 30 June 6 months ended 30 June
2018 2017 Year ended 31 December 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
-------------------------------------- ----------------------- ----------------------- ----------------------------
Revenue - - -
-------------------------------------- ----------------------- ----------------------- ----------------------------
Research and development costs (628) (502) (1,224)
Share based payments (3) - (1)
Administrative costs (280) (82) (356)
-------------------------------------- ----------------------- ----------------------- ----------------------------
Operating loss (911) (584) (1,581)
Finance income 6 11 22
-------------------------------------- ----------------------- ----------------------- ----------------------------
Loss before tax (905) (573) (1,559)
Income tax credit 98 68 137
-------------------------------------- ----------------------- ----------------------- ----------------------------
Loss from continuing operations (807) (505) (1,422)
-------------------------------------- ----------------------- ----------------------- ----------------------------
Loss from discontinued operations (173) - (42)
-------------------------------------- ----------------------- ----------------------- ----------------------------
Loss and total comprehensive loss for
the period (980) (505) (1,464)
-------------------------------------- ----------------------- ----------------------- ----------------------------
Loss per share attributable to the
equity holders of the Company:
Basic and diluted loss per share
(pence) on continuing operations (0.15) (0.10) (0.27)
Basic and diluted loss per share
(pence) on total operations (0.18) (0.10) (0.28)
-------------------------------------- ----------------------- ----------------------- ----------------------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30
JUNE 2018
As at 30 June As at 30 June As at 31 December
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets and goodwill 4,938 4,213 4,958
Investments 3 3 3
Plant and equipment 32 29 31
4,973 4,245 4,992
---------------------------------------------------------- -------------------- ---------------- ------------------
Current assets
Inventories 27 - 10
Trade and other receivables 149 66 127
Taxation recoverable 98 68 -
Cash and cash equivalents 2,066 4,285 3,265
---------------------------------------------------------- -------------------- ---------------- ------------------
2,340 4,419 3,402
---------------------------------------------------------- -------------------- ---------------- ------------------
Liabilities
Current liabilities
Trade and other payables (177) (253) (281)
---------------------------------------------------------- -------------------- ---------------- ------------------
Net current assets 2,163 4,166 3,121
---------------------------------------------------------- -------------------- ---------------- ------------------
Total net assets 7,136 8,411 8,113
---------------------------------------------------------- -------------------- ---------------- ------------------
Equity and liabilities
Shareholders' equity
Called up share capital 55 53 55
Share premium 3,287 3,287 3,287
Merger reserve 5,334 4,880 5,334
Shares to be issued reserve 204 - 204
Share based payments reserve 4 - 1
Retained (deficit) / earnings (1,748) 191 (768)
---------------------------------------------------------- -------------------- ---------------- ------------------
Total equity attributable to shareholders of the Company 7,136 8,411 8,113
---------------------------------------------------------- -------------------- ---------------- ------------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE
SIX MONTHSED 30 JUNE 2018
Share based Shares to be
Merger payment issued Retained
Share equity Share premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
Balance at 31
December 2016 53 3,287 4,880 - - 696 8,916
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
Total
comprehensive
loss for the
six months to
30 June 2017 - - - - - (505) (505)
Balance at 30
June 2017 53 3,287 4,880 - - 191 8,411
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
Total
comprehensive
loss for the
six months to
31 December
2017 - - - - - (959) (959)
Transactions
with owners
Shares to be
issued and
issuable on
acquisition
of subsidiary 2 - 454 - 204 - 660
Share based
payment
charge - - - 1 - - 1
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
Balance at 31
December 2017 55 3,287 5,334 1 204 (768) 8,113
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
Total
comprehensive
loss for the
six months to
30 June 2018 - - - - - (980) (980)
Transactions
with owners
Share based
payment
charge - - - 3 - - 3
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
Balance at 30
June 2018 55 3,287 5,334 4 204 (1,748) 7,136
--------------- ------------- -------------- -------------- ------------- ------------- -------------- --------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX
MONTHSED 30 JUNE 2018
6 months 6 months Year
ended 30 ended 30 ended
June June 31 December
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
-------------------------------------------- ------------ ------------ -------------
Cash flows from operating activities
Operating loss from continuing operations (911) (584) (1,581)
Loss from discontinued operations (173) - (42)
Adjustments for:
Depreciation and amortisation charges 28 6 14
Share based payments charge 3 - 1
-------------------------------------------- ------------ ------------ -------------
Operating cash outflows before movement
in working capital (1,053) (578) (1,608)
(Increase)/decrease in inventories (17) - (1)
(Increase)/decrease in trade and
other receivables (22) (36) (80)
(Decrease)/increase in trade and
other payables (104) 116 27
-------------------------------------------- ------------ ------------ -------------
Cash used in operations (1,196) (498) (1,660)
Interest received 6 11 22
Taxation received - - 137
-------------------------------------------- ------------ ------------ -------------
Net cash used in operating activities (1,190) (487) (1,503)
-------------------------------------------- ------------ ------------ -------------
Cash flows from investing activities
Purchase of property, plant and equipment (9) (17) (24)
Cash and bank in subsidiary at acquisition - - 3
Net cash used in investing activities (9) (17) (21)
-------------------------------------------- ------------ ------------ -------------
Net decrease in cash and cash equivalents (1,199) (504) (1,524)
Cash and cash equivalents at beginning
of period 3,265 4,789 4,789
-------------------------------------------- ------------ ------------ -------------
Cash and cash equivalents at end
of period 2,066 4,285 3,265
-------------------------------------------- ------------ ------------ -------------
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE
SIX MONTHS ENDED 30 JUNE 2018
1) BASIS OF PREPARATION
The condensed interim financial statements of DeepMatter Group
Plc are unaudited condensed consolidated financial statements for
the six months ended 30 June 2018. These include unaudited
comparatives for the six months ended 30 June 2017 together with
audited comparatives for the year ended 31 December 2017.
The interim financial statements do not include all of the
information required for full annual financial statements and do
not comply with all the disclosures in IAS 34 'Interim Financial
Reporting' and should be read in conjunction with the Group's
annual financial statements as at 31 December 2017. Accordingly,
whilst the interim statements have been prepared in accordance with
IFRS, they cannot be construed as being in full compliance with
IFRS.
The financial information for the year ended 31 December 2017
does not constitute statutory financial statements within the
meaning of section 435 of the Companies Act 2006. A copy of the
audited financial statements for that year has been delivered to
the Registrar of Companies. The Auditors' opinion on those
financial statements was unqualified, did not draw attention to any
matters by way of an emphasis of matter paragraph, and it contained
no statement under section 498(2) or section 498(3) of the
Companies Act 2006.
The accounting policies adopted are consistent with those
followed in the preparation of the Group's annual financial
statements for the year ended 31 December 2017. As at 1 January
2018 there are no new standards or interpretations that resulted in
any impact on the accounting policies, financial position or
performance of the Group. The Group has not early adopted any other
standard, interpretation or amendment that has been issued but is
not yet effective.
Going concern
Information on the business environment, financial position and
the factors underpinning the Group's future prospects and portfolio
are included in the Chairman's Statement. The Directors confirm
that they are satisfied that the Group has adequate resources to
continue in business for the medium term based on the current
liquid resources available. For this reason, they continue to adopt
the going concern basis in preparing the financial statements.
2) SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted are consistent with those
followed in the preparation of the consolidated annual financial
statements of Cronin Group Plc for the year ended 31 December
2017.
3) SEGMENTAL REPORTING
The Board is of the opinion that the business operates only one
reportable operating segment, being that of the digitization of
chemical space and of innovative chemical discovery.
No operating segments have been aggregated to form the above
reportable operating segment. Individual projects do not meet the
definition of segments, and as such the revenues and costs of
individual projects are not formally separated. In addition, due to
the research and development nature of the business, many projects
are transitory, depending on success, and thus no meaningful data
can be provided through such analysis.
4) LOSS PER SHARE (BASIC AND DILUTED)
Basic earnings or loss per share is calculated by dividing the
gain or loss attributable to ordinary shareholders by the weighted
average number of ordinary shares in issue during the period.
For diluted earnings or loss per share, the weighted average
number of ordinary shares in issue is adjusted to assume conversion
of all dilutive potential ordinary shares.
6 months ended 30 June 6 months ended 30 June
2018 2017 Year ended 31 December 2017
(Unaudited) (Unaudited) (Audited)
---------------------------- --------------------------- --------------------------- ----------------------------
Continuing operations
Loss attributable to equity
holders of the Group
(GBP'000) (807) (505) (1,422)
Weighted average number of
shares in issue ('000) 550,740 525,740 529,370
---------------------------- --------------------------- --------------------------- ----------------------------
Basic and diluted loss per
share (pence) (0.15) (0.10) (0.27)
---------------------------- --------------------------- --------------------------- ----------------------------
Total operations
Loss attributable to equity
holders of the Group
(GBP'000) (980) (505) (1,464)
Weighted average number of
dilutive shares in issue 550,740 525,740 529,370
---------------------------- --------------------------- --------------------------- ----------------------------
Basic and diluted loss per
share (pence) (0.18) (0.10) (0.28)
---------------------------- --------------------------- --------------------------- ----------------------------
Basic loss per share is based on the loss after tax for the
period and the weighted average number of ordinary shares of
GBP0.0001 each in issue during the period. Diluted loss per share
is calculated by adjusting the average number of ordinary shares in
issue during the period to assume conversion of all dilutive
potential ordinary shares. The Company had a total of 23,873,334
potentially issuable dilutive ordinary shares in existence at the
30 June 2018 period end; (31 December 2017: 23,936,667; 30 June
2017: nil), comprised of 1,873,334 share options and 22,000,000
deferred consideration shares issued in relation to the acquisition
of OpenIOLabs Limited. The 23,873,334 potentially issuable dilutive
shares have not been included in the calculations below due to
their potential issuance having an effect to reduce loss per share
attributable to equity holders.
5) RELATED PARTY TRANSACTIONS
The Group has taken advantage of the exemptions contained within
IAS 24 - 'Related Party Disclosures' from the requirement to
disclose transactions between Group companies as these have been
eliminated on consolidation.
In addition, during the period the Company paid remuneration to
the Directors' in accordance with their service contracts and
letters of appointment.
6) HALF YEAR FINANCIAL REPORT
A copy of the half year report, as well as the prior year annual
statutory accounts, is available on the Company's website at
www.deepmatter.io.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BUGDCXSGBGIU
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