TIDMHML
RNS Number : 4965Z
Henderson Morley PLC
23 September 2009
23 September 2009
HENDERSON MORLEY PLC
(AIM: HML)
FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2009
The Board of Henderson Morley plc ("Henderson Morley" or "the Company"), the AIM
quoted drug discovery company, announces its final results for the year to 30
April 2009.
HIGHLIGHTS
* First revenues from vaccine against Eel Herpes virus (EHV) will be received
during the next eel fishing season which runs from November to April.
* In discussions with commercial partners to out-license Feline Herpes Virus
("FHV") development candidate and Canine Cancer Immunotherapy.
* The Company currently has 47 granted patents with 45 pending.
* Losses before tax fell to GBP1,103,106
* Revenues grew to GBP80,019
POST PERIOD EVENTS
* Successfully raised GBP625,000 via an Open Offer.
* Grant application submitted to the US government funded National Institute of
Health. This could secure non-dilutive funding to further develop the
Cytomegalovirus ("CMV") Vaccine.
* Koi Herpes Virus ("KHV ") vaccine field study has produced positive results.
* Discussions continuing regarding the divestment of ICVT.
Commenting on today's results, Executive Chairman, Andrew Knight said: "Our long
term strategy remains on consolidating as a pure play vaccine company by 2011.
We believe that this is a period of great opportunity for Henderson Morley, as
we continue to work on building shareholder value through divestment as well as
licensing and collaboration."
=--ENDS---
ENQUIRIES:
HENDERSON MORLEY PLC 0121 442 4600
Andrew Knight, Chairman
BISHOPSGATE COMMUNICATIONS LTD 0207 562 3350
Maxine Barnes
Gemma O'Hara
BREWIN DOLPHIN INVESTMENT BANKING 0113 241 0126
Neil Baldwin
RIVINGTON STREET CORPORATE FINANCE LTD 020 7562 3380
Monisha Varadan
Further information on Henderson Morley plc can be accessed through the
Company's website at www.henderson-morley.com
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Chairman's Statement for the Year Ended 30 April 2009
Financial Summary
Turnover for the period under review was GBP80,019 (2008:GBP16,468) which, after
expenses and R&D costs, showed a pre tax loss of GBP1,103,106 (2008:
GBP1,304,528). Cash at Bank as at 30 April 2009 was GBP49,999 (2008:
GBP701,269). The total number of shares in issue at 30 April 2009 was
721,261,963. (2008: 575,261,963). The total number of shares in issue now is
1,004,697,463 (2008: 721,261,963).
Overview
In June 2009, the Company successfully raised GBP625,000 via an Open Offer,
which was well received by shareholders. Given the strong level of demand from
shareholders, the proposed underwriting by Directors was not drawn upon.
However, all of the Company's Executive Directors participated in the Offer and
continue to support the Company. As such no Board member has sold any shares
other than to their SIPPs since the Company was founded.
Grant Applications
The Company was pleased to confirm that it had submitted a grant application to
the US government funded National Institute of Health ("NIH"). The aim is to
secure non-dilutive funding to further develop the Cytomegalovirus ("CMV")
Vaccine candidate (part of the PREPS and L-particles vaccine platform). The
development of a vaccine for CMV is a priority for the NIH and has been
identified as a pathogen that has a significant impact on public health.
The Australian Centre for Vaccine Development is a leading Australian research
centre. It believes that the combination of Henderson Morley's technology and
the vaccine design expertise of the Queensland Institute of Medical Research
(QIMR), Australia, constitutes a unique and powerful approach to the development
of a vaccine for CMV. The Poly-L particle approach, patented by Henderson
Morley, is unparalleled globally.
Animal Health Division
Aqua Health
Koi Herpes Virus ("KHV")
In August 2009, we announced the results of the study in which eight different
vaccine candidates were investigated. These candidates were formulated to
examine the effects of different doses of vaccines, the addition of purified
virus particles and the formulation of candidates with different adjuvants
(components of the vaccine that boost immune responses). Additionally, different
combinations of adjuvants, which we believe have never been used in fish
vaccines before, were also examined.
Ten groups of Koi carp were held in isolated tanks each with individual water
supplies, of which eight groups were vaccinated with candidate vaccines. One
group received no vaccine (negative control), and another group were survivors
of prior KHV infection, (positive controls).
Results
The unvaccinated negative control group died from KHV infection, as did the fish
in some of the unsuccessful low dose vaccine groups. The Board is very pleased
that in two of the vaccine groups, 96% and 93% of the vaccinated fish survived,
and remained healthy following the virus challenge and for the month following
the virus challenge. Other vaccine groups had 76% and 79% survival; however
these candidates are not being selected for further development.
The next stage will be for the Company to create an in depth report on these
findings for submission to Schering Plough for their consideration.
Vaccine against Eel Herpes virus (EHV)
The Company has a vaccine under development for glass eels, designed to protect
the fish from EHV infection. This year, there has been a significant reduction
in wild catches, consequently heightening the need for a vaccine that may reduce
losses from infections.
Demand will be underpinned by the fact that each year small and immature glass
eels are captured in the rivers of (predominantly) England, France and Spain, to
be grown on in farms to produce eels for human consumption. The growth of these
captured eels is time consuming, expensive and prone to losses due to infections
including EHV, therefore farmers seek to minimise losses of their fish by
vaccination where and when available. It is anticipated that the first revenues
from this vaccine will be received during the next eel fishing season which runs
from November to April.
Feline Herpes Virus ("FHV")
The market for treating Feline Herpes Infections in cats and nursing kittens is
one of considerable unmet veterinary medical need. We are currently in
discussions with more than one commercial partner to out-license this
development candidate. These discussions have been initiated in conjunction with
our regulatory advisers. They have recommended to us to await signature of a
commercial licence, prior to closure of the trial, so that any protocol changes
or additions from a licensee may be incorporated into the study. These
discussions are ongoing and we will update the market with further information.
Cancer Immunotherapy - Canine
We propose to start a study during the remainder of 2009 which will be carried
out by scientists at the Colorado State University. This study will examine
PREPS and L-Particles that have been engineered to express a lymphoma antigen
and will examine the safety and efficacy of the vaccine. Again, we are in
discussions with a number of companies to effect a licence to take this
treatment forwards.
Human Health Division
The Australian Centre for Vaccine Development (ACVD)
The collaborative research agreement signed with ACVD to participate in the
continuing development of a vaccine targeted at preventing Cytomegalovirus (CMV)
and Epstein Barr (EBV) virus diseases. As referred to above, the Company and the
ACVD have jointly applied for a grant to assist with the development of this
project and we await confirmation that this application has been successful.
Patent Update
We continue to extend and protect our patent portfolio and I am pleased to
advise shareholders that we now have 47 granted patents with 45 pending and one
allowed but not yet granted.
Outlook
As I outlined in my letter to shareholders in the Offering Document in June, our
long term strategy is to consolidate as a pure play vaccine company by 2011. The
first stage in this process is the divestment of ICVT and we continue to
negotiate with potential partners who are undertaking due diligence. We also
intend to divest the Animal Health division in the medium term as previously
advised in the Offering Document.
We believe that this is a period of great opportunity for Henderson Morley, as
we continue to work on building shareholder value through divestment as well as
licensing and collaboration.
ANDREW KNIGHT
Executive Chairman
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Consolidated Income Statement
for the Year Ended 30 April 2009
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | 30.4.09 | | 30.4.08 |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | Notes | | GBP | | GBP |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| CONTINUING OPERATIONS | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Revenue | 2 | | 80,019 | | 16,468 |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Cost of Sales | | | - | | (503) |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| GROSS PROFIT | | | 80,019 | | 15,965 |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Administrative expenses | | 741,125 | | 839,163 | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Research and development | | 451,725 | | 528,118 | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Total administrative expenses | | | (1,192,850) | | (1,367,281) |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| OPERATING LOSS | | | (1,112,831) | | (1,351,316) |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Finance costs | 4 | | (55) | | (617) |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Finance income | 4 | | 9,780 | | 47,405 |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| LOSS BEFORE TAX being the | 5 | | (1,103,106) | | (1,304,528) |
| retained loss for the year | | | | | |
| attributed to the members of | | | | | |
| Henderson Morley Plc. | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Tax | 6 | | 92,798 | | 98,857 |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| LOSS FOR THE YEAR | | | (1,010,308) | | (1,205,671) |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| Earnings per share expressed in | 7 | | (0.17p) | | (0.24p) |
| pence per share: Basic & Diluted | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
| | | | | | |
+----------------------------------+-------+----------+-------------+----------+-------------+
All amounts relate to continuing activities.
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Consolidated Balance Sheet
as at 30 April 2009
+---------------------------------+------------------+--------------+---------------+
| | | 30.4.09 | 30.4.08 |
| | Notes | GBP | GBP |
+---------------------------------+------------------+--------------+---------------+
| ASSETS | | | |
| NON-CURRENT ASSETS | | | |
+---------------------------------+------------------+--------------+---------------+
| Goodwill | 8 | 58,964 | 58,964 |
+---------------------------------+------------------+--------------+---------------+
| Intangible assets | 9 | 26,560 | 31,872 |
+---------------------------------+------------------+--------------+---------------+
| Property, plant and equipment | 10 | 117,896 | 166,133 |
+---------------------------------+------------------+--------------+---------------+
| | | 203,420 | 256,969 |
+---------------------------------+------------------+--------------+---------------+
| | | | |
+---------------------------------+------------------+--------------+---------------+
| CURRENT ASSETS | | | |
+---------------------------------+------------------+--------------+---------------+
| Inventories | 12 | 200 | 200 |
+---------------------------------+------------------+--------------+---------------+
| Trade and other receivables | 13 | 73,353 | 99,293 |
+---------------------------------+------------------+--------------+---------------+
| Tax receivable | | 92,798 | 98,857 |
+---------------------------------+------------------+--------------+---------------+
| Cash and cash equivalents | 14 | 49,999 | 701,269 |
+---------------------------------+------------------+--------------+---------------+
| | | 216,350 | 899,619 |
+---------------------------------+------------------+--------------+---------------+
| | | | |
+---------------------------------+------------------+--------------+---------------+
| LIABILITIES | | | |
| CURRENT LIABILITIES | | | |
+---------------------------------+------------------+--------------+---------------+
| Trade and other payables | 15 | 201,251 | 199,614 |
+---------------------------------+------------------+--------------+---------------+
| Financial liabilities - | 16 | - | 1,483 |
| borrowings | | | |
| Bank overdrafts | | | |
+---------------------------------+------------------+--------------+---------------+
| | | 201,251 | 201,097 |
+---------------------------------+------------------+--------------+---------------+
| NET CURRENT ASSETS | | 15,099 | 698,522 |
+---------------------------------+------------------+--------------+---------------+
| | | | |
+---------------------------------+------------------+--------------+---------------+
| NET ASSETS | | 218,519 | 955,491 |
+---------------------------------+------------------+--------------+---------------+
| | | | |
+---------------------------------+------------------+--------------+---------------+
| SHAREHOLDERS' EQUITY | | | |
+---------------------------------+------------------+--------------+---------------+
| Called up share capital | 18 | 901,578 | 719,078 |
+---------------------------------+------------------+--------------+---------------+
| Share premium | 19 | 6,398,347 | 6,307,511 |
+---------------------------------+------------------+--------------+---------------+
| Retained earnings | 29 | (7,081,406) | (6,071,098) |
+---------------------------------+------------------+--------------+---------------+
| TOTAL EQUITY | 23 | 218,519 | 955,491 |
+---------------------------------+------------------+--------------+---------------+
HENDERSON MORLEY PLC
Parent Company Balance Sheet
As at 30 April 2009
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| | | 30.4.09 | 30.4.08 |
| | Notes | GBP | GBP |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| ASSETS | | | |
| NON-CURRENT ASSETS | | | |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| Investments | 27 | 130,145 | 130,145 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| | | | |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| CURRENT ASSETS | | | |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| Trade and other receivables | 13 | 146,509 | 210,529 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| Cash and cash equivalents | 14 | 13,095 | 685,998 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| | | 159,604 | 896,527 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| | | | |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| LIABILITIES | | - | - |
| CURRENT LIABILITIES | | | |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| NET ASSETS | | 289,749 | 1,026,672 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| | | | |
| SHAREHOLDERS' EQUITY | | | |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| Called up share capital | 18 | 901,578 | 719,078 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| Share premium | 19 | 6,398,347 | 6,307,511 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| Retained earnings | 29 | (7,010,176) | (5,999,917) |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
| TOTAL EQUITY | 24 | 289,749 | 1,026,672 |
+---------------------------------+----------------+--------------------------------------+---------------------------------------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Statement of Changes in Equity
30 April 2009
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+--------------------------------+-----------+-------------+-------------+-------------+
| | Called up | Share | Retained | Total |
| | share | premium | Earnings | Equity |
| | capital | account | | |
| | GBP | GBP | GBP | |
| | | | | GBP |
| | | | | |
+--------------------------------+-----------+-------------+-------------+-------------+
| Balance 30 April 2007 | 614,911 | 5,940,641 | (4,865,427) | 1,690,125 |
+--------------------------------+-----------+-------------+-------------+-------------+
| Issue of shares (net of issue | 104,167 | 366,870 | - | 471,037 |
| costs) | | | | |
+--------------------------------+-----------+-------------+-------------+-------------+
| Loss for the year | - | - | (1,205,671) | (1,205,671) |
+--------------------------------+-----------+-------------+-------------+-------------+
| Balance 30 April 2008 | 719,078 | 6,307,511 | (6,071,098) | 955,491 |
+--------------------------------+-----------+-------------+-------------+-------------+
| Issue of shares (net of issue | 182,500 | 90,836 | - | 273,336 |
| costs) | | | | |
+--------------------------------+-----------+-------------+-------------+-------------+
| Loss for the year | _______- | ________- | (1,010,308) | (1,010,308) |
+--------------------------------+-----------+-------------+-------------+-------------+
| Balance 30 April 2009 | 901,578 | 6,398,347 | (7,081,406) | 218,519 |
+--------------------------------+-----------+-------------+-------------+-------------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Consolidated Cash Flow Statement
for the Year Ended 30 April 2009
+--------------------------------------+-----------+-------------+--------------+
| | | 30.4.09 | 30.4.08 |
+--------------------------------------+-----------+-------------+--------------+
| | Notes | GBP | GBP |
+--------------------------------------+-----------+-------------+--------------+
| Cash flow from operating activities | | | |
+--------------------------------------+-----------+-------------+--------------+
| Cash generated from operations | 1 | (1,021,999) | (1,227,185) |
+--------------------------------------+-----------+-------------+--------------+
| Interest paid | | (55) | (617) |
+--------------------------------------+-----------+-------------+--------------+
| Tax credits received | | 98,857 | 77,679 |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Net cash from operating activities | | (923,197) | (1,150,123) |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Cash flows from investing activities | | | |
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Purchase of tangible fixed assets | | (15,549) | (161,508) |
+--------------------------------------+-----------+-------------+--------------+
| Sale of tangible fixed assets | | 3,328 | 1,400 |
+--------------------------------------+-----------+-------------+--------------+
| Interest received | | 9,780 | 47,405 |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Net cash from investing activities | | (2,441) | (112,703) |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Cash flows from financing activities | | | |
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Amount introduced by directors | | 2,515 | 21,426 |
+--------------------------------------+-----------+-------------+--------------+
| Issue of new shares net of expenses | | 273,336 | 471,037 |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Net cash from financing activities | | 275,851 | 492,463 |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| (Decrease)/Increase in cash and cash | | (649,787) | (770,363) |
| equivalents | | | |
+--------------------------------------+-----------+-------------+--------------+
| Cash and cash equivalents at | 2 | 699,786 | 1,470,149 |
| beginning of | | | |
| year | | | |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| Cash and cash equivalents at end of | 2 | 49,999 | 699,786 |
| year | | | |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
| | | | |
+--------------------------------------+-----------+-------------+--------------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 April 2009
+----+-------------------------------------------------------+-------------+-------------+
| 1. | RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM OPERATIONS |
+----+-----------------------------------------------------------------------------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | 30.4.09 | 30.4.08 |
+----+-------------------------------------------------------+-------------+-------------+
| | | GBP | GBP |
+----+-------------------------------------------------------+-------------+-------------+
| | Operating Loss | (1,112,831) | (1,351,316) |
+----+-------------------------------------------------------+-------------+-------------+
| | Depreciation charges | 66,602 | 74,512 |
+----+-------------------------------------------------------+-------------+-------------+
| | Profit on disposal of fixed assets | (832) | (725) |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | (1,047,061) | (1,277,529) |
+----+-------------------------------------------------------+-------------+-------------+
| | Decrease in inventories | - | 200 |
+----+-------------------------------------------------------+-------------+-------------+
| | (Increase)/Decrease in trade and other receivables | 25,940 | (51,476) |
+----+-------------------------------------------------------+-------------+-------------+
| | Increase/(Decrease) in trade and other payables | (878) | 101,620 |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | Cash generated from operations | (1,021,999) |(1,227,185) |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| 2. | CASH AND CASH EQUIVALENTS | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | The amounts disclosed on the cash flow statement in | | |
| | respect of cash and cash equivalents are in respect | | |
| | of these balance sheet amounts: | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | Year ended 30 April 2009 | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | 30.4.09 | 1.5.08 |
+----+-------------------------------------------------------+-------------+-------------+
| | | GBP | GBP |
+----+-------------------------------------------------------+-------------+-------------+
| | Cash and cash equivalents | 49,999 | 701,269 |
+----+-------------------------------------------------------+-------------+-------------+
| | Bank overdrafts | - | (1,483) |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | 49,999 | 699,786 |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | Year ended 30 April 2008 | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | 30.4.08 | 1.5.07 |
+----+-------------------------------------------------------+-------------+-------------+
| | | GBP | GBP |
+----+-------------------------------------------------------+-------------+-------------+
| | Cash and cash equivalent | 701,269 | 1,478,460 |
+----+-------------------------------------------------------+-------------+-------------+
| | Bank overdraft | (1,483) | (8,311) |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | 699,786 | 1,470,149 |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
| | | | |
+----+-------------------------------------------------------+-------------+-------------+
The financial statements were approved by the Board of Directors on 22 September
2009 and were signed on its behalf by:
A N Knight
Executive Chairman
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
1.ACCOUNTING POLICIES
Basis of Accounting
The financial report has been prepared using accounting policies consistent with
International Financial Reporting Standards (IFRS).
The report has been prepared on a going concern basis in accordance with
International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB") at 30 April 2009 as well as
all interpretations issued by the International Financial Reporting
Interpretations Committee ("IFRIC") at 30 April 2009. The group has not availed
itself of early adoption options in such standards and interpretations.
As discussed in the Directors Report on Pages 4 to 9 the validity of the going
concern basis will depend on the ability of the directors to arrange further
funding to support the activities of the subsidiary undertaking, Henderson
Morley Research and Development Limited, or to obtain income from the sale of
some of its intellectual property rights and associated know how so that its
products under development can achieve commercial success. The Directors are
confident that the group will be able to raise appropriate funding or to make
such a sale and accordingly have prepared these accounts on a going concern
basis
The financial statements have been prepared under the historical cost basis and
are presented in sterling. The principal accounting policies adopted are set out
below:
New standards and Interpretations of existing standards that are not yet
effective and have not been early adopted by the group.
International Accounting Standards (IFRS/IAS)
+-------------------------------+--------------------------------------------------------+
| IFRS 2 | Share Based Payments |
+-------------------------------+--------------------------------------------------------+
| IFRS 3 | Business Combinations |
+-------------------------------+--------------------------------------------------------+
| IFRS 5 | Non current assets held for sale and discontinued |
| | operations |
+-------------------------------+--------------------------------------------------------+
| IFRS 8 | Operating Segments, Segment information should be |
| | presented on the same basis as that used for internal |
| | reporting purposes |
+-------------------------------+--------------------------------------------------------+
| IAS 1 | Presentation of Financial Statements (revised 2007) |
+-------------------------------+--------------------------------------------------------+
| IAS16 | Property plant and equipment |
+-------------------------------+--------------------------------------------------------+
| IAS 26 | Impairment of assets |
+-------------------------------+--------------------------------------------------------+
| IAS 27 | Group and Separate Financial Statements |
+-------------------------------+--------------------------------------------------------+
| IAS 28 | Investments in associates |
+-------------------------------+--------------------------------------------------------+
| IAS 32 | Financial Instruments: Disclosure and Presentation |
+-------------------------------+--------------------------------------------------------+
IFRIC Interpretations
+-------------------------------+--------------------------------------------------------+
| IFRIC 11 | Group and Treasury Share Transactions |
+-------------------------------+--------------------------------------------------------+
| IFRIC 12 | Service Concessions Arrangements |
+-------------------------------+--------------------------------------------------------+
| IFRIC 13 | Customer Loyalty programmes |
+-------------------------------+--------------------------------------------------------+
The Group does not anticipate that the adoption of these standards and
interpretations will have a material impact on the Group's financial statements
on adoption.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up to
30 April each year. Control is achieved where the Company has the power to
govern the financial and operating policies so as to obtain benefits from its
activities.
The group does not disclose transactions or balances between Group entities that
are wholly eliminated on consolidation.
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
1.ACCOUNTING POLICIES - Continued
Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided in
the normal course of business, net of discounts, VAT and other sales-related
taxes, and amounts received in accordance with licensing agreements.
Research and Development
The group considers that the regulatory, technical and market uncertainties
inherent in the development of new products mean that internal development costs
should not be capitalised as intangible non-current assets until commercial
viability of a project is demonstratable and appropriate resource is in place to
launch the products. Except in those circumstances, research and development
expenditure is expensed as incurred.
Taxation
The tax charge or credit represents the sum of the current and
deferred tax.
Current tax is provided as amounts expected to be paid or recovered using the
tax rates and laws that have been enacted or substantively enacted by the
balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition of other assets
and liabilities in a transaction that affects neither the tax profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that is no longer probable that sufficient
taxable profits will be available to allow all, or part, of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Intangible assets
Intangible assets acquired separately are measured on initial recognition at
cost. Following initial recognition, intangible assets are carried at cost less
any accumulated amortisation and any accumulated impairment losses. Internally
generated intangible assets are not capitalised until commercial viability of a
project is demonstrable and appropriate resource is in place to launch the
product. Except in those circumstances expenditure is charged against profit in
the year in which the expenditure is incurred. Intangible assets with a future
useful life are amortised over their useful economic lives. The intangible
assets residual values, useful lives and methods of valuation are reviewed and
adjusted, if appropriate, at each financial period end.
For intangible assets with finite useful lives, amortisation is calculated so as
to write off the cost of an asset less its estimated residual value over its
useful economic life as follows:
Know how, patents and licences - over 10 years.
Goodwill
Goodwill arising on consolidation represents the excess cost of acquisition over
the group's interest in the fair value of the identifiable assets and
liabilities of a subsidiary, associate or jointly controlled entity at the date
of acquisition.
1.ACCOUNTING POLICIES - Continued
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed. Goodwill arising on acquisition before the date of
transition to IFRS has been retained at the previous UK GAAP amounts subject to
being tested for impairment at that date.
Impairment of tangible and intangible assets excluding goodwill
Intangible and tangible assets are reviewed for impairment both annually and
when there is an indication that an asset may be impaired when events of changes
in circumstances indicate that carrying value may not be recoverable. The
recoverable amount of the asset is calculated, this being the higher of the
assets fair value less costs to sell and its value in use. Where the carrying
amount exceeds the recoverable amount, the intangible assets are considered
impaired and written down to their recoverable amounts.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of assets over
their estimated useful lives on the following bases:
+--------------------------------------+---------------------------------------+
| Equipment and fixtures | 25% per annum on reducing balance |
+--------------------------------------+---------------------------------------+
| Leasehold property | Straight line over 10 years |
+--------------------------------------+---------------------------------------+
The gain or loss arising on the disposal or retirement of an asset is determined
as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in income.
Leases
Rentals under operating leases are charged against profit as
incurred.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the
rates of exchange ruling at the balance sheet date. Transactions in foreign
currencies are translated into sterling at the rate of exchange ruling at the
date of transaction. Exchange differences are taken into account in arriving at
the operating result.
Share based payments
The only share based payments of the group are equity settled Share options.
Options have been granted over the ordinary shares of Henderson Morley to
employees and advisors. All options granted had an exercise price of either
market value or above at the date of grant. Taking into account all the terms
and conditions upon which the options are granted the Directors believe that a
fair value for such shares does not exceed the exercise price. As a consequence
the amount recognised as an expense and as a share based payment reserve is
GBPNil.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises direct materials. Cost is calculated using the first in first out
(FIFO) basis. Net realisable value represents the estimated selling price less
all estimated costs to be incurred in marketing and selling.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Trade payables
Trade payables are not interest-bearing and are stated at their
nominal value.
Employee benefit costs
The company operates a defined contribution pension scheme. Contributions
payable to the company's pension scheme are charged to the income statement in
the period to which they relate.
1.ACCOUNTING POLICIES - Continued
Financial Liabilities
Financial liabilities and equity instruments are classified according to the
substance of the contractual agreements entered in to. An equity instrument is
any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments are recognised at the
amounts of proceeds received net of costs directly attributable to the
transaction. To the extent that those proceeds exceed the par value of the
shares issued they are credited to share premium account.
Key sources of estimation uncertainty and critical accounting judgements
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are discussed below.
Valuation of intangibles and impairment of goodwill and valuation of
intangibles
Determining whether a carrying value of goodwill and the other intangibles is
impaired requires an estimation of their values. Although there are uncertain
cash flows, the directors consider that there is sufficient value in
intellectual property and development to justify the carrying values. Therefore
there was no impairment during the year.
In preparing the financial statements of the individual companies, transactions
in currencies other than the entity's function currency (foreign currencies) are
recorded at the rates of exchange prevailing on the dates of the transactions.
At each balance sheet date, monetary assets and liabilities that are denominated
in foreign currencies are retranslated at the rates prevailing on the balance
sheet date.
Research and development expenditure was recognised in the income statement
during the year. Management made the judgement not to capitalise this
expenditure as it did not meet the criteria of IAS 38 in that it related to
costs incurred on the development of products which have not been approved from
a regulatory point of view at that stage.
Dividend policy
The directors currently intend to devote the Company's cash resources to its
operations and therefore do not anticipate paying dividends in the near future.
They will reconsider the Company's dividend policy as and when the Company is in
a position to pay dividends. The declaration and payment by the Company of any
dividends will depend on the results of the Group's operations, its financial
condition, cash requirements, future prospects, profits available for
distribution and other factors deemed to be relevant at the time.
2. SEGMENTAL REPORTING
The revenue, loss on ordinary activities and net assets of the group are
attributable to two business segments, the development of drugs and vaccines for
(a) human health purposes and (b) animal health purposes, both of which are
undertaken in the United Kingdom.
3.EMPLOYEES AND DIRECTORS
+------------------------------------------------+----------+-----------+
| | 30.4.09 | 30.4.08 |
+------------------------------------------------+----------+-----------+
| | GBP | GBP |
+------------------------------------------------+----------+-----------+
| Wages and salaries | 525,151 | 534,774 |
+------------------------------------------------+----------+-----------+
| Social security costs | 53,046 | 51,517 |
+------------------------------------------------+----------+-----------+
| Other pension costs | 1,800 | 102,600 |
+------------------------------------------------+----------+-----------+
| | | |
| | 579,997 | 688,891 |
+------------------------------------------------+----------+-----------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+----+----------------------------------------------------------+---------+---------+
| 3. | EMPLOYEES AND DIRECTORS (cont..) | | |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | The average monthly number of employees during the year | | |
| | was as follows | | |
+----+----------------------------------------------------------+---------+---------+
| | | 30.4.09 | 30.4.08 |
+----+----------------------------------------------------------+---------+---------+
| | | No. | No. |
+----+----------------------------------------------------------+---------+---------+
| | Research and development | 7 | 6 |
+----+----------------------------------------------------------+---------+---------+
| | Management and administration | 3 | 3 |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | | 10 | 9 |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | | 30.4.09 | 30.4.08 |
+----+----------------------------------------------------------+---------+---------+
| | | GBP | GBP |
+----+----------------------------------------------------------+---------+---------+
| | Directors' emoluments | 314,506 | 303,453 |
+----+----------------------------------------------------------+---------+---------+
| | Directors' pension contributions to money purchase | - | 100,800 |
| | schemes | | |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | | 30.4.09 | 30.4.08 |
+----+----------------------------------------------------------+---------+---------+
| | | No. | No. |
+----+----------------------------------------------------------+---------+---------+
| | The number of directors to whom retirement benefits were | | |
| | accruing was as follows: | | |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | Money purchase schemes | 2 | 2 |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | Information regarding the highest paid director is as | | |
| | follows: | | |
+----+----------------------------------------------------------+---------+---------+
| | | 30.4.09 | 30.4.08 |
+----+----------------------------------------------------------+---------+---------+
| | | GBP | GBP |
+----+----------------------------------------------------------+---------+---------+
| | Emoluments etc | 136,904 | 132,924 |
+----+----------------------------------------------------------+---------+---------+
| | Pension contributions to money purchase schemes | - | 50,400 |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| 4. | NET FINANCE INCOME | | |
+----+----------------------------------------------------------+---------+---------+
| | | 30.4.09 | 30.4.08 |
+----+----------------------------------------------------------+---------+---------+
| | | GBP | GBP |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | Finance income: | | |
+----+----------------------------------------------------------+---------+---------+
| | Deposit account interest | 9,780 | 47,405 |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | Finance costs: | | |
+----+----------------------------------------------------------+---------+---------+
| | Bank interest | 55 | 617 |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | | | |
+----+----------------------------------------------------------+---------+---------+
| | Net finance income | 9,725 | 46,788 |
+----+----------------------------------------------------------+---------+---------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+----+---------------------------------------------+---+--+---+----------+----+---+----------+
| 5. | OPERATING LOSS | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | The loss before tax is stated after | | | | |
| | charging/(crediting): | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | 30.4.09 | | 30.4.08 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | GBP | | GBP |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Cost of inventories recognised as expense | | - | | 503 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Hire of plant and machinery | | 5,581 | | 7,591 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Depreciation - owned assets | | 61,290 | | 69,200 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Profit on disposal of fixed assets | | (832) | | (725) |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Patents and licences amortisation | | 4,750 | | 4,750 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Auditors' remuneration | | | | |
| | | | | | |
| | - Audit services to the parent company | 2,500 | | 2,000 | |
| | - Audit services to the Group | 10,000 | 12,500 | 7,250 | 9,250 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Research and Development expenditure | | 451,725 | | 528,118 |
| | (including wages) | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Operating lease rentals | | 27,000 | | 27,000 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Amortisation of know how | | 562 | | 562 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Finance Cost | | 617 | | 617 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Finance Income | | (9,780) | | (47,405) |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| 6. | TAX | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Analysis of the tax credit | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | 30.4.09 | | 30.4.08 |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | GBP | | GBP |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Current tax: | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Corporation tax recoverable | | (92,798) | | (98,857) |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Total tax credit in income statement | | (92,798) | | (98,857) |
+----+---------------------------------------------+----------+----------+--------+----------+
| | | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| | Factors affecting the tax charge | | | | |
+----+---------------------------------------------+----------+----------+--------+----------+
| The tax assessed for the year is higher than the |
| standard rate of corporation tax in the UK. The |
| difference is explained below: |
+--------------------------------------------------------------------------------------------+
| | | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | 30.4.09 | | 30.4.08 |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | GBP | | GBP |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Loss on ordinary activities before tax | | (1,103,106) | | (1,304,528) |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Loss on ordinary activities | | (308,870) | | (388,749) |
| | Multiplied by the standard rate of corporation | | | | |
| | tax | | | | |
| | in the UK of 28% (2008-29.800%) | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Effects of: | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Disallowable expenses including leasehold | | 14,317 | | 18,703 |
| | depreciation and goodwill | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Capital allowances in excess of depreciation | | 2,341 | | (7,094) |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Research and development surrendered for tax | | 108,264 | | 122,747 |
| | credit | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Losses arising in the period | | 183,948 | | 254,393 |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Research and development tax credit | | (92,798) | | (98,857) |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | | | |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | Total tax | | (92,798) | | (98,857) |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | | | |
| | Effective tax rate | | 8.4% | | 7.6% |
+----+-------------------------------------------------+--+--------------+----+--------------+
| | | | | | |
+----+---------------------------------------------+---+--+---+----------+----+---+----------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
6.TAX - continued
Factors that may affect future tax charges
Deferred tax assets have not been recognised in respect of timing differences
relating to revenue losses as there is insufficient evidence that the assets
will be recovered. The amount of the asset not recognised in respect of the
revenue losses is GBP1,574,000 (2008 GBP1,337,000).These assets would be
utilised if the companies was to make future taxable income.
There are trading losses of approximately GBP5.2m (2008 GBP4.6m) available to
carry forward against future tax liabilities.
7.LOSS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of
shares adjusted to assume the conversion of all dilutive potential ordinary
shares.
Reconciliations are set out below.
+-----------------------------------------------+-------------+-------------+----------+
| | Earnings | 30.4.09 | Per- |
| | GBP | Weighted | share |
| | | average | amount |
| | | number | pence |
| | | of | |
| | | shares | |
+-----------------------------------------------+-------------+-------------+----------+
| Basic and Diluted EPS | | | |
+-----------------------------------------------+-------------+-------------+----------+
| Earnings attributable to ordinary | (1,010,308) | 611,261,963 | (0.17p) |
| shareholders | | | |
+-----------------------------------------------+-------------+-------------+----------+
| | | | |
+-----------------------------------------------+-------------+-------------+----------+
| | | | |
+-----------------------------------------------+-------------+-------------+----------+
| | Earnings | 30.4.08 | Per- |
| | GBP | Weighted | share |
| | | average | amount |
| | | number | pence |
| | | of | |
| | | shares | |
+-----------------------------------------------+-------------+-------------+----------+
| Basic and Diluted EPS | | | |
+-----------------------------------------------+-------------+-------------+----------+
| Earnings attributable to ordinary | (1,205,671) | 495,809,909 | |
| shareholders | | | (0.24p) |
+-----------------------------------------------+-------------+-------------+----------+
| | | | |
+-----------------------------------------------+-------------+-------------+----------+
On the 29th June 2009 the company issued a further 283,085,500 shares and on 9th
July 2009 350,000 shares following an open offer. This offer raised GBP626,737
gross, GBP526,828 after expenses.
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+----+---------------------------------------------+----------+------------+----------+
| 8. | GOODWILL-GROUP | | | |
+----+---------------------------------------------+----------+------------+----------+
| | | | | GBP |
+----+---------------------------------------------+----------+------------+----------+
| | COST | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 1 May 2008 | | | |
+----+---------------------------------------------+----------+------------+----------+
| | and 30 April 2009 | | | 147,404 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | AMORTISATION | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 1 May 2008 | | | 88,440 |
+----+---------------------------------------------+----------+------------+----------+
| | Charge for year | | | - |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 30 April 2008 and 30 April 2009 | | | 88,440 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | NET BOOK VALUE | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 30 April 2009 | | | 58,964 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 30 April 2008 | | | 58,964 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| 9. | INTANGIBLE ASSETS - GROUP | | | |
+----+---------------------------------------------+----------+------------+----------+
| | | Know | Patents | Totals |
| | | How | and | GBP |
| | | GBP | licences | |
| | | | GBP | |
+----+---------------------------------------------+----------+------------+----------+
| | COST | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 1 May 2008 | 5,620 | 47,501 | 53,121 |
+----+---------------------------------------------+----------+------------+----------+
| | and 30 April 2009 | | | |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | AMORTISATION | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 1 May 2008 | 2,248 | 19,001 | 21,249 |
+----+---------------------------------------------+----------+------------+----------+
| | Amortisation for year | 562 | 4,750 | 5,312 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 30 April 2009 | 2,810 | 23,751 | 26,561 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | NET BOOK VALUE | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 30 April 2009 | 2,810 | 23,750 | 26,560 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | At 30 April 2008 | 3,372 | 28,500 | 31,872 |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
| | | | | |
+----+---------------------------------------------+----------+------------+----------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+--------+---------------------------------+-----------+-------------+----------+----------+
| 10. | PROPERTY, PLANT AND EQUIPMENT - GROUP |
+--------+---------------------------------------------------------------------------------+
| | | | | | |
| | | | Equipment | | |
| | | Leasehold | and | | |
| | | Property | Fixtures | Website | Totals |
| | | GBP | GBP | GBP | GBP |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | COST | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | At 1May 2008 | 85,530 | 247,597 | 38,600 | 371,727 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | Additions | - | 15,549 | - | 15,549 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | Disposals | - | (3,328) | - | (3,328) |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | At 30 April 2009 | 85,530 | 259,818 | 38,600 | 383,948 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | DEPRECIATION | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | At 1 May 2008 | 53,458 | 113,536 | 38,600 | 205,594 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | Charge for year | 24,500 | 36,790 | - | 61,290 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | Eliminated on disposal | - | (832) | - | (832) |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | At 30 April 2009 | 77,958 | 149,494 | 38,600 | 266,052 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | NET BOOK VALUE | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | At 30 April 2009 | 7,572 | 110,324 | - | 117,896 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | At 30 April 2008 | 32,072 | 134,061 | - | 166,133 |
+--------+---------------------------------+-----------+-------------+----------+----------+
| | | | | | |
+--------+---------------------------------+-----------+-------------+----------+----------+
11. IMPAIRMENT OF GOODWILL, INTANGIBLE AND TANGIBLE ASSETS
The Directors have reviewed the carrying value for assets for impairment. In
their view, although there are uncertain cash flows, there is sufficient value
in intellectual property and development to justify the carrying values bearing
in mind long term cash flows anticipated.
12. INVENTORIES - GROUP
+--------------------------------+--------------------------------+--------------------------------+
| | 30.4.09 | 30.4.08 |
+--------------------------------+--------------------------------+--------------------------------+
| | GBP | GBP |
+--------------------------------+--------------------------------+--------------------------------+
| Goods for resale | 200 | 200 |
+--------------------------------+--------------------------------+--------------------------------+
13. TRADE AND OTHER RECEIVABLES
+----------------------------+--------------+-----------+-------------+-------------+
| | 30.04.09 | 30.04.08 |
+----------------------------+--------------------------+---------------------------+
| | Parent | Group | Parent | Group |
| | Undertaking | | Undertaking | |
+----------------------------+--------------+-----------+-------------+-------------+
| Current | GBP | GBP | GBP | GBP |
+----------------------------+--------------+-----------+-------------+-------------+
| Trade Receivables | - | 23,553 | - | 15,150 |
+----------------------------+--------------+-----------+-------------+-------------+
| Other Receivables | - | - | - | 3,195 |
+----------------------------+--------------+-----------+-------------+-------------+
| VAT | - | 20,956 | - | 53,334 |
+----------------------------+--------------+-----------+-------------+-------------+
| Prepayments | - | 28,844 | - | 27,614 |
+----------------------------+--------------+-----------+-------------+-------------+
| Subsidiary Undertaking | 146,509 | - | 210,529 | - |
+----------------------------+--------------+-----------+-------------+-------------+
| | 146,509 | 73,353 | 210,529 | 99,293 |
+----------------------------+--------------+-----------+-------------+-------------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
14. CASH AND CASH EQUIVALENTS
+-------------------------------+---------------+-----------+-------------+-----------+
| | 30.04.09 | 30.04.08 |
+-------------------------------+---------------------------+-------------------------+
| | Parent | Group | Parent | Group |
| | Undertaking | | Undertaking | |
+-------------------------------+---------------+-----------+-------------+-----------+
| | GBP | GBP | GBP | GBP |
+-------------------------------+---------------+-----------+-------------+-----------+
| Bank deposit account | 315 | - | 282,335 | 282,450 |
+-------------------------------+---------------+-----------+-------------+-----------+
| Bank accounts | 12,780 | 49,999 | 403,663 | 418,819 |
+-------------------------------+---------------+-----------+-------------+-----------+
| | 13,095 | 49,999 | 685,998 | 701,269 |
+-------------------------------+---------------+-----------+-------------+-----------+
15. TRADE AND OTHER PAYABLES
+-----------------------------+--------------+-----------+-------------+-------------+
| | 30.04.09 | 30.04.08 |
+-----------------------------+--------------------------+---------------------------+
| | Parent | Group | Parent | Group |
| | Undertaking | | Undertaking | |
+-----------------------------+--------------+-----------+-------------+-------------+
| Current | GBP | GBP | GBP | GBP |
+-----------------------------+--------------+-----------+-------------+-------------+
| Trade Creditors | - | 141,518 | - | 144,188 |
+-----------------------------+--------------+-----------+-------------+-------------+
| Social security and other | - | 15,315 | - | 15,695 |
| taxes | | | | |
+-----------------------------+--------------+-----------+-------------+-------------+
| Amount owed to related | - | 19,688 | - | 17,642 |
| undertakings | | | | |
+-----------------------------+--------------+-----------+-------------+-------------+
| Accrued expenses | - | 12,511 | - | 12,385 |
+-----------------------------+--------------+-----------+-------------+-------------+
| Directors' current accounts | - | 12,219 | - | 9,704 |
+-----------------------------+--------------+-----------+-------------+-------------+
| | - | 201,251 | - | 199,614 |
+-----------------------------+--------------+-----------+-------------+-------------+
+-----+-------------------------------------------------------------------------------+
| 16. | FINANCIAL LIABILITIES - BORROWINGS |
+-----+-------------------------------------------------------------------------------+
+----------------------------+--------------+-----------+-------------+-------------+
| | 30.04.09 | 30.04.08 |
+----------------------------+--------------------------+---------------------------+
| Terms and debt repayments | Parent | Group | Parent | Group |
| schedule is within one | Undertaking | GBP | Undertaking | GBP |
| year or on demand. | GBP | | GBP | |
| | | | | |
+----------------------------+--------------+-----------+-------------+-------------+
| Current: | | | | |
+----------------------------+--------------+-----------+-------------+-------------+
| Bank overdrafts | - | - | - | 1,483 |
+----------------------------+--------------+-----------+-------------+-------------+
| | - | - | - | 1,483 |
+----------------------------+--------------+-----------+-------------+-------------+
Bank loans and overdrafts are secured by a personal guarantee from A N Knight, a
director of the company, up to a maximum amount of GBP50,000 (2008 GBP50,000).
The Board provides written objectives, policies and procedures with regards to
managing currency and interest risk exposures, liquidity and credit risk
including guidance on the use of certain derivate and non derivate financial
instruments.
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
16 FINANCIAL LIABILITIES - BORROWINGS (cont.)
Credit risk
Currently Henderson Morley has little exposure to credit risk relating to
receivables as its sale of goods and services are on a very limited scale. The
credit risk is regarded as limited because the counterparties are banks or other
institutions with high credit ratings.
Interest rate and liquidity risk
The Group is principally funded by equity and invests in short - term deposits,
having access to these funds at short notice. The group's policy throughout the
period has been to minimise interest rate risk by placing funds in low risk cash
deposits but also to maximise the return on funds placed on deposit.
All cash deposits attract a floating rate of interest. The benchmark rate for
determining interest receivable and floating rate assets is linked to the UK
base rate.
Foreign currency risk
The Group has little exposure to foreign currency risk as the majority of
transactions are conducted in sterling and only nominal amounts are maintained
in foreign currency accounts.
Fair value
There were no material differences between the book value of financial
instruments and their fair value at 30 April 2009 or 30 April 2008.
+------+-------------------------------+--------------+---------+-----------+-----------+
| 17. | LEASING AGREEMENTS - GROUP |
| | |
+------+--------------------------------------------------------------------------------+
| | Total commitments under non-cancellable operating leases are as follows: |
| | |
+------+--------------------------------------------------------------------------------+
| | Land and Buildings | | | 30.4.09 | 30.4.08 |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | | | | GBP | GBP |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Within one year | | | 27,000 | 27,000 |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Between one and five years | | | 108,000 | 108,000 |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Over 5 years | | | 132,750 | 159,750 |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| 18. | CALLED UP SHARE CAPITAL | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Authorised: | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Number: | Class |Nominal | 30.4.09 | 30.4.08 |
| | | | Value | GBP | GBP |
| | 1,200,000,000 | Ordinary | .125p | 1,500,000 | 1,000,000 |
| | (30.4.08 - 800,000) | shares | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Allotted, issued and fully | | | | |
| | paid: | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | Number: | Class |Nominal | 30.4.09 | 30.4.08 |
| | | | Value | GBP | GBP |
| | 721,261,963 | Ordinary | .125p | 901,578 | 719,078 |
| | (30.4.08-575,261,963) | shares | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
| | | | | | |
+------+-------------------------------+--------------+---------+-----------+-----------+
On the 30 January 2009 the company issued 146,000,000 ordinary shares of 0.125p
each at a value of 0.2p each raising GBP273,336 after expenses.
On the 29th June 2009 the company issued a further 283,085,500 shares and on 9th
July 2009 350,000 shares following an open offer. This offer raised GBP626,737
gross, GBP526,828 after expenses.
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+------+--------------------------------------------------------+------------+-----------+
| 19. | SHARE PREMIUM - GROUP AND COMPANY | | |
+------+--------------------------------------------------------+------------+-----------+
| | | 30.4.09 | 30.4.08 |
+------+--------------------------------------------------------+------------+-----------+
| | | GBP | GBP |
+------+--------------------------------------------------------+------------+-----------+
| | Brought forward | 6,307,511 | 5,940,641 |
+------+--------------------------------------------------------+------------+-----------+
| | Cash share issue | 109,500 | 395,834 |
+------+--------------------------------------------------------+------------+-----------+
| | Expenses of Share Issue | (18,664) | (28,964) |
+------+--------------------------------------------------------+------------+-----------+
| | | 6,398,347 | 6,307,511 |
+------+--------------------------------------------------------+------------+-----------+
20. Share Based Payments
The Group operates both unapproved option schemes and schemes under the
Enterprise Management Incentive regime over the Ordinary Shares of Henderson
Morley Plc.
The movement in share options during the year were as follows:
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| | No. | At | Options | At | Exercise | Earliest | Options | Expiry |
| | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| | | 1 May | Granted | 30 April | Price | Date | Vested | Date |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| | | 2008 | | 2009 | (pence) | Exercisable | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| | | No. | | No. | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| Directors | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| A N | (1) | 5,600,000 | - | 5,600,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
| Knight | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| A N | (1) | 1,577,000 | - | 1,577,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
| Knight | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| A N | (2) | 923,000 | - | 923,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
| Knight | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| I S | (1) | 5,600,000 | - | 5,600,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
| Pardoe | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| I S | (1) | 1,577,000 | - | 1,577,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
| Pardoe | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| I S | (2) | 923,000 | - | 923,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
| Pardoe | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| MW Fowler | (2) | 400,000 | - | 400,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| CR Pate | (2) | 1,200,000 | - | 1,200,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| CR Pate | (2) | 800,000 | - | 800,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| Others | | | - | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| C Hartley | (1) | 400,000 | - | 400,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| C Hartley | (1) | 2,000,000 | - | 2,000,000 | 1.50 | 26.5.2005 | yes | 25.5.2009 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| C Hartley | (1) | 2,900,000 | - | 2,900,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| C Hartley | (2) | 2,700,000 | - | 2,700,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| M Hartley | (1) | 160,000 | - | 160,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| M Hartley | (1) | 1,100,000 | - | 1,100,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| U Patel | (1) | 80,000 | - | 80,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| U Patel | (1) | 420,000 | - | 420,000 | 2.25 | 1.5.2007 | yes | 30.4.2012 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| M Jordan | (2) | 1,600,000 | - | 1,600,000 | 2.00 | 1.3.2005 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| M Jordan | (2) | 1,000,000 | - | 1,000,000 | 1.50 | 26.5.2005 | yes | 25.5.2009 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| R Roberts | (2) | 500,000 | - | 500,000 | 3.70 | 28.4.2007 | yes | 28.2.2010 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| J Burden | (1) | 1,250,000 | | 1,250,000 | 1.65 | 14.12.2007 | yes | 13.12.2014 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| E Surgate | (1) | 1,000,000 | | 1,000,000 | 1.65 | 14.12.2007 | yes | 13.12.2014 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| A Wood | (1) | 1,000,000 | | 1,000,000 | 1.65 | 14.12.2007 | yes | 13.12.2014 |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
| | | | | | | | | |
+-----------+-----+-----------+---------+-----------+----------+-------------+---------+------------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+-------+--------------------------------------------------------+----------+------------+
| 20. | Share Based Payments (cont.) | | |
+-------+--------------------------------------------------------+----------+------------+
| | | 30.04.09 | 30.04.08 |
| | | GBP | GBP |
+-------+--------------------------------------------------------+----------+------------+
| (1) | | | |
| (2) | Under the Enterprise Management Incentive Regime | | |
| | | | |
| | Unapproved | | |
+-------+--------------------------------------------------------+----------+------------+
| | | | |
+-------+--------------------------------------------------------+----------+------------+
| | The amounts charged to the group were as follows | | |
+-------+--------------------------------------------------------+----------+------------+
| | | | |
+-------+--------------------------------------------------------+----------+------------+
| | Share based payments | - | - |
+-------+--------------------------------------------------------+----------+------------+
| | | | |
+-------+--------------------------------------------------------+----------+------------+
| | The resulting reserves were as follows: | | |
+-------+--------------------------------------------------------+----------+------------+
| | Share based payment reserve | - | - |
+-------+--------------------------------------------------------+----------+------------+
The options granted during the year and still outstanding at 30 April 2009 had a
weighted average exercise price of 2.04p, a weighted average remaining
contractual life of 738 days and a weighted average expected life of 738 days.
The aggregate of the estimated fair values of the options at grant date was
GBPNil. The weighted average of those fair values was GBPNil.
+------+--------------------------------------------------------+----------+------------+
| | | | |
+------+--------------------------------------------------------+----------+------------+
| 21. | CAPITAL COMMITMENTS | | |
+------+--------------------------------------------------------+----------+------------+
| | | 30.4.09 | 30.4.08 |
+------+--------------------------------------------------------+----------+------------+
| | | GBP | GBP |
+------+--------------------------------------------------------+----------+------------+
| | Contracted but not provided for in the | | |
| | financial statements | - | - |
+------+--------------------------------------------------------+----------+------------+
22.TRANSACTIONS WITH DIRECTORS
A Knight is owed GBP4,214 (2008 GBP3,699) at the year end as he made an interest
free loan to the company.
I S Pardoe is owed GBP8,005 (2008 GBP6,005) at the year end as he made an
interest free loan to the company.
+-----+----------------------------------------------------------+-------------+-------------+
| 23. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS - GROUP |
+-----+--------------------------------------------------------------------------------------+
| | | 30.4.09 | 30.4.08 |
+-----+----------------------------------------------------------+-------------+-------------+
| | | GBP | GBP |
+-----+----------------------------------------------------------+-------------+-------------+
| | Loss for the financial year | (1,010,308) | (1,205,671) |
+-----+----------------------------------------------------------+-------------+-------------+
| | Shares allotted | 182,500 | 104,167 |
+-----+----------------------------------------------------------+-------------+-------------+
| | Share premium | 90,836 | 366,870 |
+-----+----------------------------------------------------------+-------------+-------------+
| | | | |
+-----+----------------------------------------------------------+-------------+-------------+
| | Net (reduction)/addition to shareholders' funds | (736,972) | (734,634) |
+-----+----------------------------------------------------------+-------------+-------------+
| | Opening shareholder' funds | 955,491 | 1,690,125 |
+-----+----------------------------------------------------------+-------------+-------------+
| | | | |
+-----+----------------------------------------------------------+-------------+-------------+
| | Closing shareholders' fund | 218,519 | 955,491 |
+-----+----------------------------------------------------------+-------------+-------------+
| | | | |
+-----+----------------------------------------------------------+-------------+-------------+
| | Equity interest | 218,519 | 955,491 |
+-----+----------------------------------------------------------+-------------+-------------+
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
+-------+---------------------------------------------------+-------------+-------------+
| 24. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS - COMPANY |
| | |
+-------+-------------------------------------------------------------------------------+
| | | 30.4.09 | 30.4.08 |
+-------+---------------------------------------------------+-------------+-------------+
| | | GBP | GBP |
+-------+---------------------------------------------------+-------------+-------------+
| | Loss for the financial year | (1,010,259) | (1,180,772) |
+-------+---------------------------------------------------+-------------+-------------+
| | Share allotted | 182,500 | 104,167 |
+-------+---------------------------------------------------+-------------+-------------+
| | Share premium | 90,836 | 366,870 |
+-------+---------------------------------------------------+-------------+-------------+
| | | | |
+-------+---------------------------------------------------+-------------+-------------+
| | Net addition/(reduction) to shareholders' funds | (736,923) | (709,735) |
+-------+---------------------------------------------------+-------------+-------------+
| | Opening shareholders' funds | 1,026,672 | 1,736,407 |
+-------+---------------------------------------------------+-------------+-------------+
| | | | |
+-------+---------------------------------------------------+-------------+-------------+
| | Closing shareholders' funds | 289,749 | 1,026,672 |
+-------+---------------------------------------------------+-------------+-------------+
| | | | |
+-------+---------------------------------------------------+-------------+-------------+
| | Equity Interests | 289,749 | 1,026,672 |
+-------+---------------------------------------------------+-------------+-------------+
25.PROFIT OF HOLDING COMPANY
As permitted by section 408 of the Companies Act 2006 the profit and loss
account of the Parent Company is not presented as part of these financial
statements. The Parent Company's loss for the year is GBP1,010,259 (2008
GBP1,180,772)
26.PENSION SCHEME
The company paid contributions amounting to GBP1,800 (2008 GBP1,800) to a
personal pension in respect of one (2008 one) of its employees in addition to
the payments in respect of directors.
+-----+------------------------------------------------------------+--------------+
| 27 | FIXED ASSET INVESTMENT - COMPANY |
+-----+---------------------------------------------------------------------------+
| | | GBP |
+-----+------------------------------------------------------------+--------------+
| | COST | |
+-----+------------------------------------------------------------+--------------+
| | At 30 April 2008 and 30 April 2009 | 130,145 |
+-----+------------------------------------------------------------+--------------+
| | | |
+-----+------------------------------------------------------------+--------------+
| | NET BOOK VALUE | |
+-----+------------------------------------------------------------+--------------+
| | At 30 April 2008 and 30 April 2009 | 130,145 |
+-----+------------------------------------------------------------+--------------+
| | | |
+-----+------------------------------------------------------------+--------------+
| | Unlisted investments | 130,145 |
+-----+------------------------------------------------------------+--------------+
The subsidiaries owned by Henderson Morley Plc at 30 April 2009 are:
+-----------------------------------+-----------------+----------------------+
| | Incorporated in | % of Ordinary Shares |
| | | held by the Group |
+-----------------------------------+-----------------+----------------------+
| | | |
+-----------------------------------+-----------------+----------------------+
| Henderson Morley Research and | England | 100 |
| Development Limited | | |
+-----------------------------------+-----------------+----------------------+
| Exanol Limited | England | 100 |
+-----------------------------------+-----------------+----------------------+
| Sci Tech Limited | England | 100 |
+-----------------------------------+-----------------+----------------------+
| Frost and Simpson Limited | England | 100 |
+-----------------------------------+-----------------+----------------------+
| Henderson Morley Biomarine | Republic of | 75 |
| Limited | Ireland | |
+-----------------------------------+-----------------+----------------------+
Henderson Morley Research and Development Limited's trading activity is the
research and development of drugs and vaccines for the pharmaceutical industry
and has been included in the consolidated results.
All other companies have been dormant throughout the year.
HENDERSON MORLEY PLC AND SUBSIDIARY
UNDERTAKINGS
Notes to the Financial Statements
for the Year Ended 30 April 2009
28.RELATED PARTY DISCLOSURES
During the year, payments were made to the following:-
1) Southern Metropolitan and Memphis Properties (private unlimited companies
which are controlled by A. Knight) as follows:-
+------+---------------------------------------------+-------------+----------+
| | | 2009 | 2008 |
| | | GBP | GBP |
+------+---------------------------------------------+-------------+----------+
| | Rent-Memphis Properties | 27,000 | 27,000 |
+------+---------------------------------------------+-------------+----------+
At 30 April 2009 and 30 April 2008 there were no amounts due to Memphis
Properties.
1a) Southern Metropolitan paid for services during the year to the value of
GBP1,054 (2008 GBP5,655) on behalf of
Aderson Morley Research and
Development Limited
At 30 April 2009 amounts due to Southern Metropolitan were GBP11,064 (2008
GBP10,010)
2) Trafalgars Chartered Accountants, C.R.Pate's practice as follows:-
+------+--------------------------------------------------+--------------+----------+
| | Accountancy services | 21,910 | 16,580 |
+------+--------------------------------------------------+--------------+----------+
+------+--------------------------------------------------+----------+--------+
| | At 30 April 2009, the following amounts were due | 8,623 | 7,632 |
| | to Trafalgar | | |
+------+--------------------------------------------------+----------+--------+
29.PROFIT AND LOSS ACCOUNTS
+------------------+--------------+-------------+--------------+--------------+
| | 30.04.09 | | 30.04.08 | |
+------------------+--------------+-------------+--------------+--------------+
| | Parent | Group | Parent | Group |
| | undertaking | GBP | Undertaking | GBP |
| | GBP | | GBP | |
+------------------+--------------+-------------+--------------+--------------+
| 1 May | (5,999,917) | (6,071,098) | (4,819,145) | (4,865,427) |
+------------------+--------------+-------------+--------------+--------------+
| Retained loss | (1,010,259) | (1,010,308) | (1,180,772) | (1,205,671) |
| for the year | | | | |
+------------------+--------------+-------------+--------------+--------------+
| 30 April | (7,010,176) | (7,081,406) | (5,999,917) | (6,071,098) |
+------------------+--------------+-------------+--------------+--------------+
30.POST BALANCE SHEET EVENT
On the 29th June 2009 the company issued a further 283,085,500 shares and on 9th
July 2009 350,000 shares following an open offer. This offer raised GBP626,737
gross, GBP526,828 after expenses.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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