TIDMCBF
RNS Number : 7298U
Cobra Bio-Manufacturing PLC
30 June 2009
+---------------------------------------+---------------------------------------+
| For Immediate Release | 30 June 2009 |
+---------------------------------------+---------------------------------------+
Cobra Biomanufacturing Plc
Interim Results
for the half year ended 31 March 2009
Cobra Biomanufacturing Plc ("Cobra" or "the Group"), the international provider
of biopharmaceutical manufacturing services, today announces its unaudited
interim results for the six months ended 31 March 2009.
* Revenue up 62% to GBP4.4m (H1 2008: GBP2.7m)
* Gross margin more than doubled to 47% (H1 2008: 20%)
* Losses reduced to GBP0.8m (H1 2008: GBP2.3m loss)
* Operating cash inflow GBP1.0m (H1 2008: GBP0.5m outflow)
* Deferred income more than doubled in the period to GBP2.5m (30 September
2008: GBP1.1m)
* Secured contracted order book up to GBP9.3m(1) (26 June 2008: GBP8.3m), with GBP3.6m of these orders scheduled for delivery in the current financial year (26 June 2008: GBP3.6m)
Simon Saxby, Chief Executive commenting on the outlook
"The GBP9.3m(1) secured order book confirms that Cobra has an exceptionally
skilled and dedicated team that enables us to continue to compete in the current
competitive and challenging environment. These skills, combined with strict cash
management, supported by an increase in revenue and further operational
efficiencies have allowed us to reduce losses significantly in the period.
However despite this improved performance in the first half and our success in
winning new business to offset the anticipated, and now confirmed loss of the
GenVec, Inc contract as per the press release on 26 June 2009, the Directors
advise that market expectations for the full financial year are unlikely to be
met.
Notwithstanding, we have been and will continue to pursue outstanding near term
contract signatures and opportunities for strategic alliances that will enable
us to take our customers from clinical supply to commercial supply for protein
based products, in the same way that we are able to for our viral vaccine
customers, and thereby provide more predictable longer term revenues in the
future."
(1) Signed contracted order book at 31 March 2009 plus contracted orders signed
from 1 April 2009 to 30 June 2009.
For further information, please contact:
+---------------------------------------------+---------------------------------+
| Cobra Biomanufacturing Plc | Tel: +44 (0) 1782 714 181 |
+---------------------------------------------+---------------------------------+
| Peter Fothergill, Non Executive Chairman | |
+---------------------------------------------+---------------------------------+
| Simon Saxby, Chief Executive | |
+---------------------------------------------+---------------------------------+
| Peter Coleman, Finance Director | |
+---------------------------------------------+---------------------------------+
| | |
+---------------------------------------------+---------------------------------+
| Buchanan Communications | Tel: +44 (0) 207 466 5000 |
+---------------------------------------------+---------------------------------+
| Tim Anderson/Rebecca Skye Dietrich | |
+---------------------------------------------+---------------------------------+
| | |
+---------------------------------------------+---------------------------------+
| Seymour Pierce (NOMAD & Broker) | Tel: +44 (0) 207 107 8000 |
+---------------------------------------------+---------------------------------+
| Christopher Howard/Christopher Wren | |
+---------------------------------------------+---------------------------------+
Chief Executive Statement
Financial Summary: The first half of the financial year 2009 saw a continuation
of the trading improvement in the previous six months with revenue increasing to
GBP4.4m, 62% higher than this time last year (H1 2008: GBP2.7m), despite the
current global economic climate which has restricted the ability of our
customers to raise funds for their product development programmes and as a
result they have reduced their outsourcing expenditure to conserve their cash.
The increase in revenue combined with a rigorous control of costs and further
operational efficiencies at both our Keele and Oxford facilities, resulted in a
gross margin improvement to 47% (H1 2008: 20%) and a significant reduction in
the loss after tax to GBP0.8m (H1 2008: GBP2.3m). During the period we also
carefully managed our cash resources to provide an operating cash inflow of
GBP1.0m (H1 2008: GBP0.5m outflow) and a closing cash and cash equivalent
balance of GBP0.4m (30 September 2008: GBP0.3m).
Secured Order Book: Our primary objective this year has been to increase and
diversify our secured order book. In the period Cobra has won 3 new customers, 4
contracts for new products from existing customers and 7 major extensions to
existing programs. The secured order book has increased to GBP9.3m(1) (26 June
2008: GBP8.3m), with GBP3.6m of these orders scheduled for delivery in the
current financial year (26 June 2008: GBP3.6m).
Our prospective order book also remains strong with leads from Scandinavia,
Eastern Europe and Japan in addition to further expansion in both our European
and North American customer base. The secured and prospective order book
reflects the strength of Cobra's reputation in the biopharmaceutical contract
manufacturing market and confirms the potential for future growth.
Revenue: Revenue from our North American customers was still predominant in H1
2009 contributing GBP2.3m (H1 2008: GBP1.4m) or 53% of the total (H1 2008: 51%).
Revenue from European based customers (including the UK) provided GBP1.2m (H1
2008: GBP1.2m), 27% of the total (H1 2008: 44%) and revenue from the Rest of the
World grew significantly to GBP0.9m (H1 2008: GBP0.1m), or 20% of the total (H1
2008: 5%). The increase in the global spread of Cobra's business provides for a
more robust future with less reliance on a single market.
Protein based revenue (including license revenue) increased to GBP1.7m (H1 2008:
GBP1.0m), 37% of the total (H1 2008: 39%) resulting from a more focused
marketing effort on mammalian cell derived proteins, using our maxXpress
technology protein expression service. Virus based revenue also grew
significantly in the period to GBP1.8m (H1 2008: GBP0.8m), 41% of the total (H1
2008: 30%) maintaining Cobra's position as a leading supplier in this market,
with the remaining revenue split between DNA generating revenue of GBP0.6m (H1
2008: GBP0.8m) and Cell Line revenue of GBP0.3m (H1 2008 GBP0.1m).
Restructuring and Strategy: Having reduced the headcount from 140 to 110 and
improved operational efficiencies over the last 18 months, this year we have
also reduced and restructured our senior management team, to reduce cost and
improve our decision making process. The senior management team's focus is on
making the most efficient use of the skills within the Group through a
comprehensive cross-training programme to maximise resource utilisation on a
much lower production headcount, without restricting our ability to generate
revenue.
Despite the headcount reduction our aim remains to fill existing capacity as
well as grow Cobra's capacity further through a number of potential strategic
options.
ORT-VAC: Cobra has generated promising preclinical data around our Oral Vaccine
technology, ORT-VAC, for which the Group currently owns 62 granted patents. The
ORT-VAC program is developed on a low cost basis, funded primarily by grants and
collaborations. The preliminary data using attenuated (i.e. weakened) Salmonella
to deliver the vaccine, demonstrates effective protection against bubonic plague
and anthrax. Further trials are ongoing with collaborators for the treatment of
Malaria, HIV and Influenza (using the H1N1 influenza strain). Work is also being
performed to confirm or enhance the effectiveness of the technology using a
different vector, Shigella, to deliver vaccines.
We believe that ORT-VAC has the potential to deliver higher doses of vaccines to
multiple diseases at a much lower manufacturing and distribution cost than
traditional vaccines, due to a simpler manufacturing process and the reduced
requirement for 'cold chain' storage and distribution.
Outlook: Cobra operates in a highly competitive market which has been
significantly affected by the current global downturn, but we continue to win
business because of the strength and breadth of our scientific expertise, our
service offering and our reputation for delivery. We are also beginning to reap
the benefits from the development of our own intellectual property, with 7
customers and 11 potential products now using our maxXpress protein expression
service, with the future possibility of milestone and royalty payments dependent
upon the success of our customers' drug development programmes, as well as the
positive results from our own ORT-VAC oral vaccine technology development
programme.
The GBP9.3m(1) secured order book confirms that Cobra has an exceptionally
skilled and dedicated team that enables us to continue to compete in the current
competitive and challenging environment. These skills, combined with strict cash
management, supported by an increase in revenue and further operational
efficiencies have allowed us to reduce losses significantly in the period.
However despite this improved performance in the first half and our success in
winning new business to offset the anticipated, and now confirmed loss of the
GenVec, Inc contract as per the press release on 26 June 2009, the Directors
advise that market expectations for the full financial year are unlikely to be
met.
Notwithstanding, we have been and will continue to pursue outstanding near term
contract signatures and opportunities for strategic alliances that will enable
us to take our customers from clinical supply to commercial supply for protein
based products, in the same way that we are able to for our viral vaccine
customers, and thereby provide more predictable longer term revenues in the
future.
Simon Saxby
Chief Executive
30 June 2009
(1) Signed contracted order book at 31 March 2009 plus contracted orders signed
from 1 April 2009 to 30 June 2009.
Financial Review
Basis of Preparation: The Group's financial information for the half year to 31
March 2009 has been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards (IFRS) as adopted by the
European Union.
Income Statement: Revenue for the period increased by 62% to GBP4.4m due to a
stronger order book, with a significantly enhanced contribution from our US
Dollar and Euro base contracts.
Gross margins improved considerably to 47% (H1 2008: 20%) as capacity was
utilised, productivity increased and fixed production costs were reduced in the
period.
Sales, marketing and distribution costs remained constant in the period at
GBP0.5m (H1 2008: GBP0.5m) as we maintained our global presence. Research and
development expenditure fell in the period to GBP0.2m (H1 2008: GBP0.4m) as
capacity filled and administrative costs, including both depreciation and
facility costs fell to GBP1.8m (H1 2008: GBP1.9m) as we controlled our fixed
overhead cost base.
Finance costs increased in the period to GBP0.4m (H1 2008: GBP0.1m) as the Group
incurred an exchange rate loss in the period of GBP0.3m (H1 2008: GBPnil). As
the Group does not hedge account, this loss under IFRS was primarily due to the
inclusion of a GBP0.3m derivative and financial instruments current liability
(H1 2008: GBPnil) for the $1.8m US Dollar forward rate contracts we had in place
at 31 March 2009.
These contracts were taken out as a partial hedge against our US Dollar order
book and the average rate of these forward contracts was $1.80 per GBP1 at 31
March 2009 compared with a closing spot rate of $1.43 per GBP1. The exchange
rate loss in the period was however, more than compensated for by an increase in
revenue and margin in the period and an increase in the future secured orders
from our US Dollar denominated order book. The exchange rate loss has also now
been mitigated further by the subsequent weakening of the US Dollar against
Sterling in recent months, which has reduced the liability on these forward
contracts.
The result is a significantly reduced loss of GBP0.8m (H1 2008: GBP2.4m loss).
Balance Sheet: Cobra invested a further GBP0.4m in plant and equipment in the
period (H1 2008: GBP0.4m), primarily to develop our Oxford facility into a
commercial virus facility.
Both our current assets and liabilities have been managed very carefully in the
period to ensure that the Group met its debt and operational obligations and
also remained within its overdraft limit. Due to careful cash management, cash
and cash equivalents increased slightly in the period to GBP0.4m (30 September
2008: GBP0.3m).
The deferred income balance more than doubled in the period to GBP2.5m (30
September 2008: GBP1.1m), reflecting the inclusion of the $1.8m settlement fee
GenVec, Inc agreed to pay Cobra during the period that their contract was on
hold, in addition to the termination fee of $0.4m and the additional deposits we
received for other new contracts in the period.
Non current liabilities fell in the period to GBP2.2m (30 September 2008:
GBP2.5m) as we utilised our GBP1.0m operating cash inflow to reduce our debt in
line with our financing obligations. The composition of non current liabilities
is split between a bank loan with National Westminster Bank Plc, secured against
freehold buildings of GBP1.7m (30 September 2008: GBP1.8m) repayable over a 13
year period which commenced in November 2007 and finance lease obligations of
GBP0.5m (30 September 2008: GBP0.7m) repayable between 2 and 5 years.
Cash Flow: Cobra generated an operating cash inflow of GBP1.0m in the period (H1
2008: GBP0.5m outflow). This inflow was used to purchase plant and equipment of
GBP0.4m (H1 2008: GBP0.4m) and service net finance repayments of GBP0.4m (H1
2008: GBP0.3m outflow), in addition to exchange losses of GBP0.2m (H1 2008:
GBPnil). This resulted in a closing cash and cash equivalents figure at 31 March
2009 of GBP0.4m (30 September 2008: GBP0.3m).
Going concern: In determining the appropriate basis of preparation of the
financial statements, the Directors are required to consider whether the Group
can continue in operational existence for the foreseeable future, being a period
of not less than twelve months from the date of the approval of the interim
results.
The disclosures made in note 1 highlight the existence of a material uncertainty
which may cast significant doubt over the Group's ability to continue as a going
concern. However the Directors believe that they have a reasonable expectation
that the Group will be able to continue as a going concern for the foreseeable
future. This financial information therefore does not include the adjustments
that would result if the Group were unable to continue as a going concern.
Peter Coleman
Finance Director
30 June 2009
Independent Review Report to Cobra Biomanufacturing Plc
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31 March
2009 which comprises the Group Income Statement, the Group Balance Sheet, the
Group Cash Flow Statement, the Group Statement of Changes in Equity and related
notes 1 to 6. We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity" issued
by the Auditing Practices Board. Our work has been undertaken so that we might
state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the AIM Rules of the London Stock Exchange.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report have been prepared in accordance with the accounting policies the Group
intends to use in preparing its next annual financial statements.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 March 2009 is not prepared, in all material
respects, in accordance with AIM Rules of the London Stock Exchange.
Emphasis of Matter
In arriving at our review conclusion, we draw attention to the disclosures made
in note 1 concerning the Group's ability to continue as a going concern. The
Group incurred a net loss of GBP0.8m during the period ended 31 March 2009, and
had cash and cash equivalents of GBP0.4m.
The Directors have prepared a cash flow forecast which makes assumptions about
the conversion of forecasted leads in addition to secured orders, and the
subsequent receipt of cash relating to those forecasted leads. Due to the
nature of the Group's business typified by the variety and size of each contract
and in conjunction with the current global economic climate, it is inherently
difficult to forecast accurately the timing of contract signatures and the
associated subsequent cash flows.
The ability of the Group to continue as a going concern is therefore dependent
on the Group achieving the level of contract signatures anticipated in the
forecast and converting these forecast contracts into revenue and cash receipts
in line with expected timings assumed in the forecast. Where forecast contract
signatures are not achieved, or are not achieved within the expected timeline,
the Group will then be dependent on additional orders that are currently not in
the sales pipeline.
Additionally, although there is a risk of non renewal the Group is dependent on
the continued availability of the overdraft facility on the same terms as it is
currently when the facility comes up for renewal at the end of August 2009.
This along with other matters set forth in the financial review indicate the
existence of a material uncertainty which may cast significant doubt over the
Group's ability to continue as a going concern. The Interim Report does not
include the adjustments that would result if the Group was unable to continue as
a going concern as it is not practicable to determine or quantify them.
Deloitte LLP
Chartered Accountants and Statutory Auditors
Cambridge, UK
30 June 2009
Cobra Biomanufacturing Plc
Group Income Statement
For the half year ended 31 March 2009
+--------------------------------+--------+------------+--------------+--------------+
| | | Unaudited | Unaudited | |
+--------------------------------+--------+------------+--------------+--------------+
| | | 6 months | 6 months | Year |
+--------------------------------+--------+------------+--------------+--------------+
| | | ended | ended | ended |
+--------------------------------+--------+------------+--------------+--------------+
| | | 31 March | 31 March | 30 September |
+--------------------------------+--------+------------+--------------+--------------+
| | | 2009 | 2008 | 2008 |
+--------------------------------+--------+------------+--------------+--------------+
| | Notes | GBP000's | GBP000's | GBP000's |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Revenue | 2 | 4,383 | 2,699 | 7,009 |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Cost of sales | | (2,310) | (2,164) | (4,686) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Gross profit | | 2,073 | 535 | 2,323 |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Sales, marketing and | | (523) | (503) | (1,048) |
| distribution costs | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Research and development | | (192) | (387) | (532) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Administrative expenses | | (1,790) | (1,898) | (3,809) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Operating loss | | (432) | (2,253) | (3,066) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Finance income | | 9 | 10 | 18 |
+--------------------------------+--------+------------+--------------+--------------+
| Finance costs | 3 | (438) | (144) | (334) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Loss before tax | | (861) | (2,387) | (3,382) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Taxation | 4 | 25 | 40 | 107 |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Loss for the period | | (836) | (2,347) | (3,275) |
+--------------------------------+--------+------------+--------------+--------------+
| | | | | |
+--------------------------------+--------+------------+--------------+--------------+
| Basic loss per share | 6 | (1.9)p | (12.0)p | (11.0)p |
+--------------------------------+--------+------------+--------------+--------------+
The results for the current and preceding periods are derived from continuing
activities.
Cobra Biomanufacturing Plc
Group Balance Sheet
As at 31 March 2009
+------------------------------+---------+--------------+------------+--------------+
| | | Unaudited | Unaudited | |
+------------------------------+---------+--------------+------------+--------------+
| | | 31 March | 31 March | 30 September |
+------------------------------+---------+--------------+------------+--------------+
| | | 2009 | 2008 | 2008 |
+------------------------------+---------+--------------+------------+--------------+
| | | GBP000's | GBP000's | GBP000's |
+------------------------------+---------+--------------+------------+--------------+
| Non current assets | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Property, plant and | | 8,154 | 8,375 | 8,203 |
| equipment | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Intangible assets | | 117 | 134 | 125 |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| | | 8,271 | 8,509 | 8,328 |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Current assets | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Inventories | | 229 | 461 | 301 |
+------------------------------+---------+--------------+------------+--------------+
| Trade and other receivables | | 2,446 | 1,717 | 1,848 |
+------------------------------+---------+--------------+------------+--------------+
| Cash and cash equivalents | | 384 | 401 | 291 |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| | | 3,059 | 2,579 | 2,440 |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Total assets | | 11,330 | 11,088 | 10,768 |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Current liabilities | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Bank loans and overdrafts | | (472) | (132) | (371) |
+------------------------------+---------+--------------+------------+--------------+
| Obligations under finance | | (605) | (693) | (663) |
| leases | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Trade and other payables | | (2,151) | (1,997) | (2,032) |
+------------------------------+---------+--------------+------------+--------------+
| Derivative and financial | | (277) | (12) | (106) |
| instruments | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Deferred income | | (2,450) | (1,681) | (1,091) |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| | | (5,955) | (4,515) | (4,263) |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Net current liabilities | | (2,896) | (1,936) | (1,823) |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Non current liabilities | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Bank loans | | (1,686) | (1,851) | (1,763) |
+------------------------------+---------+--------------+------------+--------------+
| Obligations under finance | | (477) | (791) | (704) |
| leases | | | | |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| | | (2,163) | (2,642) | (2,467) |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Total liabilities | | (8,118) | (7,157) | (6,730) |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Net assets | | 3,212 | 3,931 | 4,038 |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Capital and reserves | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Called up share capital | | 443 | 1,959 | 443 |
+------------------------------+---------+--------------+------------+--------------+
| Deferred shares | | 1,763 | - | 1,763 |
+------------------------------+---------+--------------+------------+--------------+
| Share premium | | 10,411 | 9,634 | 10,411 |
+------------------------------+---------+--------------+------------+--------------+
| Merger reserve | | 29,729 | 29,729 | 29,729 |
+------------------------------+---------+--------------+------------+--------------+
| Other reserves | | 483 | 462 | 473 |
+------------------------------+---------+--------------+------------+--------------+
| Profit and loss reserve | | (39,617) | (37,853) | (38,781) |
+------------------------------+---------+--------------+------------+--------------+
| | | | | |
+------------------------------+---------+--------------+------------+--------------+
| Total equity | | 3,212 | 3,931 | 4,038 |
+------------------------------+---------+--------------+------------+--------------+
Cobra Biomanufacturing Plc
Group Cash Flow Statement
For the half year ended 31 March 2009
+--------------------------------------------+-------+------------+-----------+------------+
| | | Unaudited | Unaudited | |
+--------------------------------------------+-------+------------+-----------+------------+
| | | 6 months | 6 months | Year |
+--------------------------------------------+-------+------------+-----------+------------+
| | | ended | ended | ended |
+--------------------------------------------+-------+------------+-----------+------------+
| | | 31 March | 31 March | 30 |
| | | | | September |
+--------------------------------------------+-------+------------+-----------+------------+
| | | 2009 | 2008 | 2008 |
+--------------------------------------------+-------+------------+-----------+------------+
| |Notes | GBP000's | GBP000's | GBP000's |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Net cash inflow/(outflow) from operating | 5 | 956 | (516) | (1,265) |
| activities | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Investing activities | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Proceeds from the disposal of property, | | 17 | - | 54 |
| plant and equipment | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Finance income | | 9 | 10 | 18 |
+--------------------------------------------+-------+------------+-----------+------------+
| Payments to acquire property, plant and | | (350) | (403) | (798) |
| equipment | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Decrease in short term deposits | | - | 275 | 275 |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Net cash outflow from investing activities | | (324) | (118) | (451) |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Financing activities | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Repayment of borrowings | | (66) | (47) | (111) |
+--------------------------------------------+-------+------------+-----------+------------+
| Lease finance acquired via sale and | | 17 | 293 | 580 |
| leaseback | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Repayment of capital elements of finance | | (302) | (338) | (742) |
| leases | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Increase/(decrease) in overdraft | | 90 | (80) | 135 |
+--------------------------------------------+-------+------------+-----------+------------+
| Issue of ordinary shares | | - | - | 1,024 |
+--------------------------------------------+-------+------------+-----------+------------+
| Interest on bank loans | | (77) | (79) | (152) |
+--------------------------------------------+-------+------------+-----------+------------+
| Interest element of finance leases | | (50) | (59) | (118) |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Net cash (outflow)/inflow from financing | | (388) | (310) | 616 |
| activities | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Increase/(decrease) in cash and cash | | 244 | (944) | (1,100) |
| equivalents | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Opening cash and cash equivalents | | 291 | 1,338 | 1,338 |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Effect of foreign exchange (losses)/gains | | (151) | 7 | 53 |
+--------------------------------------------+-------+------------+-----------+------------+
| | | | | |
+--------------------------------------------+-------+------------+-----------+------------+
| Closing cash and cash equivalents | | 384 | 401 | 291 |
+--------------------------------------------+-------+------------+-----------+------------+
Cobra Biomanufacturing Plc
Group Statement of Changes in Equity
As at 31 March 2009
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | Profit | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | Share | Deferred | Share | Merger | Other | and loss | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | capital | shares | premium | reserve | reserves | reserve | Total |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| At 1 October 2007 | 1,959 | - | 9,634 | 29,729 | 453 | (35,506) | 6,269 |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Share based | - | - | - | - | 9 | - | 9 |
| payments | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Loss for the period | - | - | - | - | - | (2,347) | (2,347) |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| At 31 March 2008 | 1,959 | - | 9,634 | 29,729 | 462 | (37,853) | 3,931 |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Capital | (1,763) | 1,763 | - | - | - | - | - |
| reorganisation | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Issue of new equity | 247 | - | - | - | - | - | 247 |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Premium arising on | - | - | 990 | - | - | - | 990 |
| issue of equity | | | | | | | |
| shares | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Expenses arising on | - | - | (213) | - | - | - | (213) |
| issue of equity | | | | | | | |
| shares | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Share based payment | - | - | - | - | 11 | - | 11 |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Loss for the period | - | - | - | - | - | (928) | (928) |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| At 30 September | 443 | 1,763 | 10,411 | 29,729 | 473 | (38,781) | 4,038 |
| 2008 | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Share based | - | - | - | - | 10 | - | 10 |
| payments | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| Loss for the period | - | - | - | - | - | (836) | (836) |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
| At 31 March 2009 | 443 | 1,763 | 10,411 | 29,729 | 483 | (39,617) | 3,212 |
+---------------------+----------+----------+----------+----------+----------+----------+----------+
Notes to the Unaudited Results
1. General information
Cobra Biomanufacturing Plc is a company incorporated in England and Wales under
the Companies Act 2006.
The financial information included in this interim report for the period ended
31 March 2009 has been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union.
The same accounting policies, presentation and methods of computation have been
followed in this financial information as applied in the Group's latest annual
audited financial statements for the year ended 30 September 2008.
The information for the year ended 30 September 2008 does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies. The auditor's report on those accounts was not qualified, but
included a reference to going concern, which the auditors drew attention to by
way of emphasis without qualifying the report but did not contain statements
under section 498(2) or (3) of the Companies Act 2006.
Going concern: In determining the appropriate basis of preparation of the
financial statements, the Directors are required to consider whether the Group
can continue in operational existence for the foreseeable future, being a period
of not less than twelve months from the date of the approval of the interim
results.
The Group incurred a net loss of GBP0.8m during the period ended 31 March 2009,
and had cash and cash equivalents of GBP0.4m. The Directors have prepared a cash
flow forecast for the period ended 30 June 2010 ("the forecast") which includes
a number of assumptions regarding income, expenditure, cash flows, the
availability of the Group's existing overdraft facilities and in particular the
conversion of forecasted leads to secured contracts at a discounted level and
the subsequent receipt of cash relating to those forecasted discounted leads.
Due to the nature of the Group's business typified by the variety and size of
each contract and in conjunction with the current global economic climate, it is
inherently difficult to forecast accurately the timing of contract signatures
and the associated subsequent cash flows.
The ability of the Group to continue as a going concern is therefore dependent
on the Group achieving the level of contract signatures anticipated in the
forecast and converting these forecast contracts into revenue and cash receipts
in line with expected timings assumed in the forecast. Where forecast contract
signatures are not achieved, or are not achieved within the expected timeline,
the Group will then be dependent on additional orders that are currently not in
the sales pipeline.
Additionally, the Group overdraft facility is due for renewal at the end of
August 2009. Based on current information available to them, the ongoing
relationship with National Westminster Bank Plc and the historic pattern of
renewal of the facility, although there is a risk of non renewal the Directors
believe the facility will be renewed on similar terms to those currently in
existence. The Directors therefore consider it reasonable to include the
availability of the facility in their assessment of the going concern basis of
preparation of the interim results.
This along with other matters set forth in this financial review indicate the
existence of a material uncertainty which may cast significant doubt over the
Group's ability to continue as a going concern. However the Directors believe
that they have a reasonable expectation that the Group will be able to continue
as a going concern for the foreseeable future.
This financial information therefore does not include the adjustments that would
result if the Group were unable to continue as a going concern.
2. Revenue
All revenue is generated from continuing operations originating in the UK, the
analysis of which is as follows:
+---------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | |
+---------------------------------+--------------+--------------+--------------+
| | 6 months | 6 months | Year |
+---------------------------------+--------------+--------------+--------------+
| | ended | ended | ended |
+---------------------------------+--------------+--------------+--------------+
| | 31 March | 31 March | 30 September |
+---------------------------------+--------------+--------------+--------------+
| | 2009 | 2008 | 2008 |
+---------------------------------+--------------+--------------+--------------+
| | GBP000's | GBP000's | GBP000's |
+---------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------+--------------+--------------+--------------+
| The rendering of services | 4,294 | 2,635 | 6,871 |
+---------------------------------+--------------+--------------+--------------+
| License revenue | 89 | 64 | 138 |
+---------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------+--------------+--------------+--------------+
| | 4,383 | 2,699 | 7,009 |
+---------------------------------+--------------+--------------+--------------+
The geographical analysis of revenue by destination is shown as follows:
+---------------------------------+--------------+--------------+--------------+
| | Unaudited | Unaudited | |
+---------------------------------+--------------+--------------+--------------+
| | 6 months | 6 months | Year |
+---------------------------------+--------------+--------------+--------------+
| | ended | ended | Ended |
+---------------------------------+--------------+--------------+--------------+
| | 31 March | 31 March | 30 September |
+---------------------------------+--------------+--------------+--------------+
| | 2009 | 2008 | 2008 |
+---------------------------------+--------------+--------------+--------------+
| | GBP000's | GBP000's | GBP000's |
+---------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------+--------------+--------------+--------------+
| North America | 2,320 | 1,369 | 3,473 |
+---------------------------------+--------------+--------------+--------------+
| United Kingdom | 705 | 398 | 1,550 |
+---------------------------------+--------------+--------------+--------------+
| Europe (excluding United | 478 | 807 | 1,330 |
| Kingdom) | | | |
+---------------------------------+--------------+--------------+--------------+
| Rest of the World | 880 | 125 | 656 |
+---------------------------------+--------------+--------------+--------------+
| | | | |
+---------------------------------+--------------+--------------+--------------+
| | 4,383 | 2,699 | 7,009 |
+---------------------------------+--------------+--------------+--------------+
The analysis of revenue by customers' biopharmaceutical product type is as
follows:
+-------------------------------------+-----------+------------+--------------+
| | Unaudited | Unaudited | |
+-------------------------------------+-----------+------------+--------------+
| | 6 months | 6 months | Year |
+-------------------------------------+-----------+------------+--------------+
| | Ended | ended | ended |
+-------------------------------------+-----------+------------+--------------+
| | 31 March | 31 March | 30 September |
+-------------------------------------+-----------+------------+--------------+
| | 2009 | 2008 | 2008 |
+-------------------------------------+-----------+------------+--------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+-----------+------------+--------------+
| | | | |
+-------------------------------------+-----------+------------+--------------+
| Protein | 1,537 | 977 | 2,245 |
+-------------------------------------+-----------+------------+--------------+
| Virus | 1,817 | 814 | 2,392 |
+-------------------------------------+-----------+------------+--------------+
| DNA | 639 | 752 | 1,653 |
+-------------------------------------+-----------+------------+--------------+
| Cell line | 301 | 92 | 581 |
+-------------------------------------+-----------+------------+--------------+
| | | | |
+-------------------------------------+-----------+------------+--------------+
| | 4,294 | 2,635 | 6,871 |
+-------------------------------------+-----------+------------+--------------+
| | | | |
+-------------------------------------+-----------+------------+--------------+
| License revenue | 89 | 64 | 138 |
+-------------------------------------+-----------+------------+--------------+
| | | | |
+-------------------------------------+-----------+------------+--------------+
| | 4,383 | 2,699 | 7,009 |
+-------------------------------------+-----------+------------+--------------+
3. Finance costs
+--------------------------------------+-----------+------------+--------------+
| | Unaudited | Unaudited | |
+--------------------------------------+-----------+------------+--------------+
| | 6 months | 6 months | Year |
+--------------------------------------+-----------+------------+--------------+
| | ended | ended | ended |
+--------------------------------------+-----------+------------+--------------+
| | 31 March | 31 March | 30 September |
+--------------------------------------+-----------+------------+--------------+
| | 2009 | 2008 | 2008 |
+--------------------------------------+-----------+------------+--------------+
| | GBP000's | GBP000's | GBP000's |
+--------------------------------------+-----------+------------+--------------+
| | | | |
+--------------------------------------+-----------+------------+--------------+
| Interest payable bank loans | 77 | 79 | 152 |
+--------------------------------------+-----------+------------+--------------+
| Interest payable on finance leases | 50 | 59 | 118 |
+--------------------------------------+-----------+------------+--------------+
| Exchange rate losses | 311 | 6 | 64 |
+--------------------------------------+-----------+------------+--------------+
| | | | |
+--------------------------------------+-----------+------------+--------------+
| | 438 | 144 | 334 |
+--------------------------------------+-----------+------------+--------------+
4. Taxation
The Group is entitled to Research and Development tax relief under Schedule 20
of the Finance Act 2000, in respect of the periods ended 31 March 2008 and 2009
and the year ended 30 September 2008.
+-------------------------------------+-----------+------------+--------------+
| | Unaudited | Unaudited | |
+-------------------------------------+-----------+------------+--------------+
| | 6 months | 6 months | Year |
+-------------------------------------+-----------+------------+--------------+
| | ended | ended | ended |
+-------------------------------------+-----------+------------+--------------+
| | 31 March | 31 March | 30 September |
+-------------------------------------+-----------+------------+--------------+
| | 2009 | 2008 | 2008 |
+-------------------------------------+-----------+------------+--------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+-----------+------------+--------------+
| Taxation on loss on ordinary | | | |
| activities | | | |
+-------------------------------------+-----------+------------+--------------+
| Tax credit in relation to R&D claim | (25) | (32) | (99) |
+-------------------------------------+-----------+------------+--------------+
| Adjustments in respect of previous | - | (8) | (8) |
| periods | | | |
+-------------------------------------+-----------+------------+--------------+
| | | | |
+-------------------------------------+-----------+------------+--------------+
| Total current tax | (25) | (40) | (107) |
+-------------------------------------+-----------+------------+--------------+
5. Net cash inflow / (outflow) from operating activities
+-------------------------------------+------------+-----------+--------------+
| | Unaudited | Unaudited | |
+-------------------------------------+------------+-----------+--------------+
| | 6 months | 6 months | Year |
+-------------------------------------+------------+-----------+--------------+
| | ended | ended | Ended |
+-------------------------------------+------------+-----------+--------------+
| | 31 March | 31 March | 30 September |
+-------------------------------------+------------+-----------+--------------+
| | 2009 | 2008 | 2008 |
+-------------------------------------+------------+-----------+--------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+------------+-----------+--------------+
| | | | |
+-------------------------------------+------------+-----------+--------------+
| Operating loss | (432) | (2,253) | (3,066) |
+-------------------------------------+------------+-----------+--------------+
| Depreciation of property, plant and | 463 | 452 | 912 |
| equipment | | | |
+-------------------------------------+------------+-----------+--------------+
| Amortisation of intangible assets | 8 | 9 | 18 |
+-------------------------------------+------------+-----------+--------------+
| (Profit)/loss on sale of property, | (9) | - | 7 |
| plant and equipment | | | |
+-------------------------------------+------------+-----------+--------------+
| Share based payments | 10 | 9 | 20 |
+-------------------------------------+------------+-----------+--------------+
| Decrease/(increase) in inventories | 72 | (83) | 81 |
+-------------------------------------+------------+-----------+--------------+
| Increase in receivables | (574) | (214) | (527) |
+-------------------------------------+------------+-----------+--------------+
| Increase in deferred income | 1,359 | 1,165 | 575 |
+-------------------------------------+------------+-----------+--------------+
| Increase in other payables | 59 | 399 | 607 |
+-------------------------------------+------------+-----------+--------------+
| | | | |
+-------------------------------------+------------+-----------+--------------+
| | 956 | (516) | (1,373) |
+-------------------------------------+------------+-----------+--------------+
| | | | |
+-------------------------------------+------------+-----------+--------------+
| R&D tax credit | - | - | 108 |
+-------------------------------------+------------+-----------+--------------+
| | | | |
+-------------------------------------+------------+-----------+--------------+
| Net cash inflow/(outflow) from | 956 | (516) | (1,265) |
| operating activities | | | |
+-------------------------------------+------------+-----------+--------------+
6. Loss per ordinary share
+-------------------------------------+------------+-----------+--------------+
| | Unaudited | Unaudited | |
+-------------------------------------+------------+-----------+--------------+
| | 6 months | 6 months | Year |
+-------------------------------------+------------+-----------+--------------+
| | ended | ended | Ended |
+-------------------------------------+------------+-----------+--------------+
| | 31 March | 31 March | 30 September |
+-------------------------------------+------------+-----------+--------------+
| | 2009 | 2008 | 2008 |
+-------------------------------------+------------+-----------+--------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+------------+-----------+--------------+
| | | | |
+-------------------------------------+------------+-----------+--------------+
| Loss for the period | (836) | (2,347) | (3,275) |
+-------------------------------------+------------+-----------+--------------+
| | | | |
+-------------------------------------+------------+-----------+--------------+
| Basic loss per share | | | |
+-------------------------------------+------------+-----------+--------------+
| Weighted average number of shares | 44,339 | 19,591 | 29,694 |
| (000's) | | | |
+-------------------------------------+------------+-----------+--------------+
| Loss per share (pence) | (1.9) | (12.0) | (11.0) |
+-------------------------------------+------------+-----------+--------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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