TIDMGMX
RNS Number : 0933U
Reliance GeneMedix PLC
16 December 2011
16 December 2011
Reliance GeneMedix plc
Results for the six months ended 30 September 2011
Reliance GeneMedix plc (the "Company"), the AIM listed
biopharmaceutical company, which is a subsidiary of Reliance Life
Sciences Pvt. Ltd. ("Reliance Life Sciences"), announces its
unaudited interim results for the six month period ended 30
September 2011.
Related party transactions
Note 9 to the interim results describes the related party
transactions that have occurred during the period. The independent
directors of the Company, namely Dr. R. A. Mashelkar, Mr Dileep
Choksi and Mr Atul Dayal consider, having consulted with the
Company's Nominated Adviser, that the terms of these related party
transactions are fair and reasonable insofar as the Company's
shareholders are concerned.
In accordance with AIM Rule 26, a copy of this announcement is
available on the Company's website at www.genemedix.com.
ENQUIRIES:
Reliance GeneMedix plc Tel: +353 57 932 3572
Vinay Ranade, Chief Executive Officer
Deloitte Corporate Finance Tel: 020 7936 3000
Jonathan Hinton, John Ball
Lothbury Financial Services Limited Tel: 020 7868 2567
Michael Padley
Chief Executive Officer's statement
We are pleased to present the Company's results for the six
months ended 30 September 2011.
Background
The Company is a globally-focused biopharmaceutical company,
specialising in the development and manufacture of high-quality,
cost-effective treatments for some of the world's most serious
diseases. Since February 2007, the Company has been a subsidiary of
Reliance Life Sciences. The Company is working towards the
development, manufacture and marketing of a portfolio of biosimilar
recombinant therapeutic proteins for global markets.
Business overview
After withdrawing the marketing authorisation application sent
to the European Medicines Agency (EMA), the Company has consulted
EMA on various aspects of the development programme of
Erythropoietin (EPO) and has since received EMA's Scientific
Advice. The Company is in the process of finalising the additional
studies to complete this development programme. The Company
continues to supply EPO to the Indian market and has taken steps to
register EPO in other countries, including Iran and Brazil.
Financial review
Operating losses of EUR1.016 million for the period (2010:
EUR1.04 million) are in line with budget and reflect planned
expenditure. The Company continues to exercise strict control over
costs and to optimise management of its cash flow.
During the period the Company capitalised development
expenditure of EUR0.835 million (2010: EUR1.27 million) incurred on
the EPO development programme. Current assets and current
liabilities are in line with the level of operations of the
Company. Despite the challenging external environment, the Company
has been able to sustain its product development programmes as a
result of the financial support it continues to receive from
Reliance Life Sciences.
Consolidated Income Statement
For the six months ended 30 September 2011
Notes 6 months 6 months
ended ended Year ended
30 September 30 September 31 March
2011 2010 2011
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
__________ __________ __________
Revenue 5 190 110 578
Cost of sales (190) (110) (578)
__________ __________ __________
Gross profit - - -
__________ __________ __________
Research and development
costs 6 - - (34)
Administrative expenses (1,016) (1,043) (2,103)
__________ __________ __________
Operating loss (1,016) (1,043) (2,137)
Finance income - - -
Finance costs (397) (256) (591)
Other income - - -
__________ __________ __________
Loss before taxation (1,413) (1,299) (2,728)
Taxation - - (203)
__________ __________ __________
Loss for the period (1,413) (1,299) (2,931)
__________ __________ __________
Loss per share - basic and
diluted 8 (0.7c) (0.8c) (1.5c)
__________ __________ __________
Consolidated Balance Sheet
As at 30 September 2011
30 September 30 September 31
2011 2010 March
2011
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
________ ________ ________
ASSETS
Non-current assets
Intangible fixed assets 15,973 13,893 15,233
Property, plant and equipment 1,236 2,122 1,678
Investment at cost 10 10 10
Deferred tax assets 2,487 2,690 2,487
________ ________ ________
19,706 18,715 19,408
________ ________ ________
Current assets
Inventories 351 251 299
Trade & other receivables 989 790 829
Restricted cash 186 184 186
Cash and cash equivalents 32 32 5
________ ________ ________
1,558 1,258 1,319
________ ________ ________
LIABILITIES
Current liabilities
Trade and other payables (2,043) (2,086) (2,047)
Borrowings (1,111) (1,080) (4,365)
________ ________ ________
(3,154) (3,166) (6,412)
________ ________ ________
Net current liabilities (1,596) (1,908) (5,093)
________ ________ ________
Total assets less current liabilities 18,110 16,807 14,315
________ ________ ________
Non-current liabilities
Trade and other payables (1,135) (459) (511)
Borrowings (11,140) (7,467) (6,556)
________ ________ ________
(12,275) (7,926) (7,067)
________ ________ ________
Net assets 5,835 8,881 7,248
________ ________ ________
Shareholders' equity
Share capital 26,412 26,412 26,412
Share premium 41,601 41,601 41,601
Other reserves 2,941 2,941 2,941
Retained losses (65,119) (62,074) (63,706)
________ ________ ________
Total shareholders' equity 5,835 8,881 7,248
________ ________ ________
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2011
Other reserves
---------------------------------
Share Share Shares Warranty Capital translation Retained
capital premium to be reserve reserve reserve loss Total
issued
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
-------- -------- ------- --------- -------- ------------ --------- -------
Balance at 1 Apr
2010 26,412 41,601 - 3,147 437 (643) (60,775) 10,179
Loss for the period - - - - - - (1,299) (1,299)
______ ______ ______ ______ ______ ______ ______ ______
Balance at 30
Sep 2010 26,412 41,601 - 3,147 437 (643) (62,074) 8,881
______ ______ ______ ______ ______ ______ ______ ______
Loss for the period - - - - - - (1,632) (1,632)
______ ______ ______ ______ ______ ______ ______ ______
Balance at 31
Mar 2011 26,412 41,601 - 3,147 437 (643) (63,706) 7,248
______ ______ ______ ______ ______ ______ ______ ______
Loss for the period - - - - - - (1,413) (1,413)
______ ______ ______ ______ ________ ______ ______ ______
Balance at 30
Sep 2011 26,412 41,601 - 3,147 437 (643) (65,119) 5,835
______ ______ ______ ______ ________ ______ ______ ______
Consolidated Cash Flow Statement
For the six months ended 30 September 2011
Notes 6 months to 6 months Year to
30 September to 30 September 31 March
2011 2010 2011
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
________ Restated ________
Cash flows from operating activities
Cash used in operations 7 (536) (812) (1,860)
Interest paid - - -
________ ________ ________
Net cash used in operating activities (536) (812) (1,860)
________ ________ ________
Cash flows from investing activities
Payment for property, plant - - -
and equipment
Receipt from property, plant - - -
and equipment
Payment for intangible assets (741) (1,274) (2,615)
Interest received - - -
Proceeds from disposal of subsidiary - - -
(Increase)/Decrease in restricted
cash - - (2)
________ ________ ________
Net cash flows used in investing
activities (741) (1,274) (2,617)
________ ________ ________
Cash flows from financing activities
Proceeds from exercising share - - -
warrants
Proceeds from borrowings 1,309 1,982 4,347
________ ________ ________
Net cash flows generated from
financing activities 1,309 1,982 4,347
________ ________ ________
Net increase/(decrease) in cash
and cash equivalents 32 (104) (130)
Cash and cash equivalent at
the beginning of period 5 134 134
Net currency translation effect (5) 2 1
________ ________ ________
Cash and cash equivalents 32 32 5
________ ________ ________
Notes to the Consolidated Interim Financial Statements
1. General information
These financial statements are the unaudited consolidated
interim financial information of Reliance GeneMedix plc, a public
limited company incorporated and domiciled in the United Kingdom,
with its registered office at 8th Floor, 105 Wigmore Street,
London, W1U 1QY, UK , and its subsidiaries (together, the "Group")
for the six months ended 30 September 2011.
The Company is a subsidiary of Reliance Life Sciences Private
Limited, India.
The Company has its primary listing on the Alternative
Investment Market (AIM) of the London Stock Exchange.
The condensed consolidated financial information for the six
months ended 30 September 2011 has been reviewed, not audited.
The condensed consolidated interim financial statements do not
comprise statutory accounts within the meaning of Section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
March 2011 were approved by the Board of Directors on 31 August
2011 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
The condensed consolidated financial information for the six
months ended 30 September 2011 will be made available at the
registered office of the Company and on the Company's website:
www.genemedix.com.
2. Basis of preparation
This condensed consolidated interim financial information for
the six months ended 30 September 2011 has been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34, 'Interim Financial
Reporting' as adopted by the European Union. The condensed
consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2011, which have been prepared in accordance with IFRS as
adopted by the European Union.
3. Principal risks
The principal risks and uncertainties which could impact the
Group have not changed since 31 March 2011. A detailed explanation
of those risks and uncertainties can be found in the Directors'
Report section of the Annual Report for the year ended 31 March
2011.
4. Segment information
The Directors are of the opinion that under IAS 8 - 'Operating
Segments' the Group has only one business segment, being drug
development (EPO) and there was turnover of Euro 0.190 million in
the six months to 30 September 2011 (Euro 0.110 million in
2010).
Revenue earned during the period is from the Group's only
customer, Reliance Life Sciences, a related party.
Segmental geographic information is set out below:
6 month ended 30 Sep 6 month ended 30 Sep Year ended 31 March
2011 Unaudited 2010 Unaudited 2011 Audited
_________________________ ________________________ ________________________
UK Ireland Total UK Ireland Total UK Ireland Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Revenue - 190 190 - 110 110 - 578 578
Non Current
Assets 262 16,953 17,215 444 15,580 16,024 297 16,624 16,921
Non-current assets consist of property, plant and equipment,
intangible assets and investments
5. Revenue
During the period the Company continued its sales to the Indian
market on pricing consistent with last year. The attractive pricing
offered reflects the current competitiveness of the Indian
market.
6. Analysis of research and development costs
6 months to 6 months Year to
30 September to 30 September 31 March
2011 2010 2011
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
Gross research and development
spend 835 1,274 2,615
Deduct: capitalised development
costs (835) (1,274) (2,615)
________ ________ ________
Research and development costs - - -
expensed
________ ________ ________
7. Cash used in operations
6 months to 6 months Year to
30 September to 30 September 31 March
2011 2010 2011
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
Loss for the period (1,413) (1,299) (2,931
Adjustments for:
- Finance costs 397 256 591
- Other financial income - - -
- Depreciation of property,
plant and equipment 443 450 893
- Deferred Tax - - 203
- Amortisation of intangible
assets 1 1 2
________ ________ ________
Operating cash flows before
movement in working capital (572) (592) (1,242)
Decrease/(increase) in inventories (52) 93 46
(Increase)/decrease in trade
and other receivables (156) (553) (591)
(Decrease)/increase in trade
and other payables 244 240 (73)
________ ________ ________
Cash used in operations (536) (812) (1,860)
________ ________ ________
8. Loss per share
The earnings and weighted average number of ordinary shares used
in the calculation of basic loss per share are as follows:
6 months 6 months Year to
to to 31 March
30 September 30 September 2011
2011 2009
Loss for the period (EUR'000) (1,413) (1,299) (2,931)
Weighted average number of shares
('000) 190,495 164,412 190,495
__________ __________ __________
Loss per share - basic and diluted (0.7c) (0.8c) (1.5c)
__________ __________ __________
In the six months ended 30 September 2011, the Group had no
dilutive potential ordinary shares in issue because it was loss
making.
9. Related party transactions
Trading transactions
During the period, the Company made sales of EPO worth
EUR190,400 to Reliance Life Sciences.
The balance due from Reliance Life Sciences as at 30 September
2011 was EUR918,144 (EUR349,674 in 2010).
During the period, the Company received clinical research
services worth EUR62,409.68 from Reliance Life Sciences and the
balance due to Reliance Life Sciences as at 30 September 2011 was
EUR833,132.80 (EUR408,918.96 in 2010).
During the period, clinical research services worth EUR4,033.92
were received from Reliance Clinical Research Services Sp. z o.o.,
Poland ("RCRSS"), a subsidiary of Reliance Life Sciences. The
Company made a payment of EUR 6,359.57 to RCRSS and the balance due
to RCRSS as at 30 September 2011 was EUR114,320.66 (EUR112,036 in
2010).
Loans from related parties
During the period, the Company received an amount of EUR1.308
million from Reliance Life Sciences as a loan. The outstanding
balance of the loan including interest as at 30 September 2011 was
EUR 12.277 million (EUR7.926 million in 2010). Details of this loan
were announced on 19 July 2011.
10. Events occurring after the balance sheet date
There are no events after 30 September 2011 that require
disclosure or adjustment to these financial statements.
11. Statement of Directors' Responsibilities
The directors confirm that this condensed consolidated interim
financial information has been prepared in accordance with IAS 34
as adopted by the European Union and that the interim management
report includes a fair review of the information required by the
DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- Material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
The directors of Reliance GeneMedix plc are listed in the Annual
Report for 31 March 2011. A list of current directors is maintained
on the Reliance GeneMedix plc website: www.genemedix.com.
By order of the Board
Vinay Ranade
Chief Executive Officer
16 December 2011
This information is provided by RNS
The company news service from the London Stock Exchange
END
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