|
NextGen
Group PLC (or ‘the Company’)
Maiden final results for the year ending 31 December 2005
NextGen Group PLC, the AIM-listed
“gene-to-protein” company, reports its maiden set of results
for the year ended 31 December 2005.
HIGHLIGHTS
· Successful listing on AIM
· Raised £1.8 million net of expenses
· Two new products launched during 2005
· 65% increase in sales to £1.011 million
IMPORTANT
EVENTS SUBSEQUENT TO 31 DECEMBER 2005
· Commercial alliance with Proteomic Research Services, Inc.
of Michigan, USA
· Key sales and marketing appointments in USA
Commenting
on these results, P. Anthony Rhatigan, Chairman of the Company, said:
“The business of NextGen Group has grown and will continue to
thrive on innovation. 2006 will see a number of new areas of growth
opportunity and the Group expects the strengthened sales and marketing
team, particularly in North America to add significantly to its performance.
I look forward with confidence to the future success of the Company”.
For further
information please contact:
Dr James
G Heffernan
CEO, Nextgen Group plc 07736 130942
Mike
Wort, Anna Dunphy
MC Bio-Communications Limited 020 7744 7711
Jonathan Wright/Nicola Marrin
Seymour Pierce Limited 020 7107 8000
NEXTGEN
GROUP PLC(formerly Shendon Plc)
CHAIRMAN’S STATEMENT
Introduction
Having
been appointed as Chairman of NextGen Group PLC after managing the
process of admitting NextGen Group Plc on 30 December 2005 to AIM,
I am pleased to present the first annual report to shareholders. In
my introduction to the Group as a newly quoted company I will give
a brief overview of the Groups’ business and its products.
NextGen
Group PLC is a holding company with two wholly owned operating subsidiaries;
NextGen Sciences Ltd and Nextgen Sciences Inc. (USA), save as specifically
indicated the results referred to below were achieved primarily by
NextGen Sciences Ltd prior to its merger with the holding company.
The Group
is a provider of expert software based systems, services and reagents
focussed on enabling enhanced access to, and understanding of the
role of, proteins in diagnosis and drug discovery.
The expert
systems are built out of NextGen’s understanding of biological
sciences and combine robotics, advanced engineering and rules-based
software in systems that range from partial to fully automated. NextGen
also uses its systems and instruments to provide fee-for-service products
to the pharmaceutical and biotechnology industry as well as to those
in academic research.
NextGen
has developed a range of product families, targeted at the biopharmaceutical
industry:
· The core technology is the OrchestratorIMS information management
system, which provides a link between biology, software and hardware.
This enables the user to plan, co-ordinate, monitor, track and execute
a growing range of biological methodologies including cloning and
protein expression strategies in a high-throughput manner. Further,
OrchestratorIMS allows customers to choose the degree of information
tracking and integration to third party systems through custom projects.
OrchestratorIMS is priced to bring the lowest tier offering within
the budget of academic institutions.
· The gene-to-protein product family is a suite of products,
which accelerate gene cloning, and the production of recombinant proteins.
The products include robotic systems driven by the OrchestratorIMS
called the ExpressionFactory and the ExpressionWorkstation. The latest
member of this family is the BaculoWorkstation, a semi-integrated
platform specifically targeted at insect cell expressed proteins.
· NextGen’s 2D gel electrophoresis product, the a2DE
Optimizer, provides features enabling customers to customise the creation
of 2D electrophoresis gels, thereby allowing enhanced separation of
proteins.
The Group
also markets and sells consumables for the product families including
NextGen’s proprietary reagents and in-licensed reagents.
Trading
Review
Turnover
of the consolidated group for the 12 months ended 31 December 2005
was £1,011,533 – an increase of 65.3% when compared to
the £611,766 achieved in 2004 by NextGen Sciences Ltd.
The percentage
gross profit achieved was 52.0% compared to 58.9% for the prior year.
The reason for this reduction is due to the sale of consumables and
reagents at a lower margin and the payment of sales commission to
distributors in 2005.
Total
operating costs increased from £2,586,726 to £3,075,115
an increase of 18.9%. This increase is mainly due to the inclusion
of discounted share options granted to Dr James Heffernan and David
Wigley, which attracted a charge of £428,496 in the profit and
loss account for the year ended 31 December 2005. The Group also incurred
exceptional costs in the year of £114,000 which relate to an
accrual for compensation for loss of office for Kevin Auton (a former
founder director of NextGen Sciences Limited).
Operating
loss of £2,663,269, compared to a loss of £2,226,524 in
2004.
Board
Changes
The Board
of the Group was appointed on 23 December 2005 prior to flotation
on AIM. The Board consists of three executive directors and three
non-executive directors.
Staff
Within
the Group we are fortunate to have a talented and highly committed
group of people, senior managers, managers and employees, who on behalf
of the Board, I wish to thank for their continued commitment and hard
work, which has been a major contribution to the continued development
of the Group.
Future
Prospects
The business
of NextGen Group has grown and will continue to thrive on innovation.
2006 will see a number of new areas of growth opportunity and the
Group expects the strengthened sales and marketing team, particularly
in North America to add significantly to its performance.
P. Anthony
Rhatigan
Chairman
23 May 2006
NEXTGEN GROUP PLC(formerly Shendon Plc)
CHIEF EXECUTIVE OFFICER’S REPORT
Flotation on AIM
The Company was
admitted to AIM on 30th December 2005 raising £1.8 million after
expenses. The monies are being used primarily to finance pursuit of
the objectives set out in the AIM Admission Document as referred to
below and for general working capital.
Review
of the business
In the AIM Admission
Document published in December 2005 the Group outlined three major
objectives it wished to achieve in 2006. These were
1. The establishment of a sales force in North America.
2. The commercialisation of developed products.
3. The further development and introduction of products and services
to serve the drug discovery and diagnostics markets.
Taking each of
these in turn.
US
Sales Force
The company is
pleased to report that following interviews held in February and March,
four experienced sales professionals were appointed covering the major
geographical market centres of The North East US (centred round New
York and New England); Mid Atlantic (Research Triangle Park); West
Coast (San Diego and the Bay Area) and Mid West (Chicago). This sales
team is led by Dr Geoff Alms, formerly of Upstate Inc, a seasoned
sales director with considerable experience in the fee for service
business. In addition, Gareth Thomson was appointed as Head of Marketing
in late April 2006 and is based at the Group’s headquarters
in Cambridgeshire. UK, Gareth’s first task has been to refine
the Group’s marketing programme and the results of this are
expected to be fruitful.
Commercialisation
of developed products
Sales
of the A2DE Optimiser continued for the first three months of 2006
at previous levels. With the advent of the US sales force the Group
is now seeing an increased demand for product demonstrations which,
in turn, are expected to turn into firm sales.
Both the BaculoWorkstation and the ExpressionWorkstation were publicly
unveiled for the first time at the Peptalk Conference held in January
in San Diego, USA. The ExpressionWorkstation was successfully demonstrated
live to an audience estimated at 150 drawn from a wide variety of
biopharmaceutical companies. This resulted in the first sale of the
product to a major multinational pharmaceutical company and the Group
has now developed a pipeline of requests for demonstration and product
pricing quotes to this same sector. The lower priced BaculoWorkstation
fills a gap in the emerging insect cell protein expression market.
Following demonstration of this product to the same market group the
Group has received several orders and received many further enquiries
from potential purchasers.
OrchestratorIMS is the information management system which interfaces
with and controls the Group’s larger instrument platforms. This
software has been further developed such that it can be used in a
standalone fashion. Following demonstration of the capabilities of
this software discussions are underway with several pharmaceutical
companies about installing this either as multiple user versions or
indeed enterprise wide. Several customers have also requested a feasibility
study of using OrchestratorIMS to control 3rd party hardware and following
market evaluation the Group is actively working with clients on this
application.
As with all capital sales, the lead time from first speaking to a
customer regarding possible purchase of one of the Group’s products
to receiving the order, delivering and invoicing, and finally receiving
payment can be anywhere from six to twelve months and sometimes longer.
This results in making forecasting of sales in any given period extremely
difficult and in a very irregular revenue recognition pattern. To
moderate this trend the company has introduced ContractExpress, a
fee for service business, where the Group rather than the customer
carries out the scientific work in return for staged payment. Group
scientists have now successfully completed several customer contracts
and it is anticipated that successful completion of this type of contract
will lead to repeat business.
In addition to the focus in the US and Europe, a distributor training
and business development trip to the Far East was also accomplished
in March 2006. Distributors have been appointed in Japan, Korea, Taiwan,
China and Singapore. A growing requirement for our products and services
is anticipated from this market, but as with Western markets, lead
times are significant and may indeed be longer than those detailed
above.
Development of new products and services
Initial focus has concentrated on further development of the OrchestratorIMS
platform adding substantial new features and capabilities to the software.
These additions have been very heavily influenced by customer input
and the results are referred to above, where a number of pharmaceutical
companies are in discussion with the Group regarding the widespread
adoption of IMS as a multi user or enterprise wide solution.
As mentioned above the Group has further developed the services offered
under ContractExpress and with the addition of the services available
from Proteomic Research Services Inc, Michigan, USA, “PRS”,
following the January announcement of the commercial alliance with
PRS, has significantly strengthened this portfolio. In addition, this
relationship with PRS has allowed the Group to facility share and
establish a base for the Group in the US. This capability allows the
Group to receive orders, store and ship products and provides an ability
to demonstrate products to customers in the US. The company has plans
to introduce jointly developed new products as a result of this relationship
later in 2006.
James Gerald Heffernan
Chief Executive Officer
23 May 2006
NEXTGEN GROUP PLC (formerly Shendon Plc)
CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 DECEMBER
2005
| |
Note |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
|
£ |
£ |
| Turnover |
3 |
1,011,533 |
611,766 |
| Cost
of sales |
|
(485,687) |
(251,564) |
| Gross
profit |
|
525,846 |
360,202 |
| Other
operating charges |
|
(3,075,115) |
(2,586,726) |
| Other
operating charges - exceptional items |
4 |
(114,000) |
- |
| Operating
loss |
|
(2,663,269) |
(2,226,524) |
| Interest
receivable |
|
12,221 |
3,899 |
| Interest
payable |
|
(54,974) |
(59,245) |
| Loss
on ordinary activities before taxation |
|
(2,706,022) |
(2,281,870) |
| Tax
on loss on ordinary activities |
|
226,466 |
- |
| Loss
for the financial year deducted from reserves |
6 |
(2,479,556) |
(2,281,870) |
| Basic
Loss per share |
5 |
1.4p |
4.6p |
There were no
recognised gains or losses other than the loss for the financial year.
All activities of the Group are classed as continuing.
The accompanying
accounting policies and notes are an integral part of these financial
statements.
NEXTGEN GROUP PLC(formerly Shendon Plc)
CONSOLIDATED BALANCE SHEET STATEMENTAS AT 31 DECEMBER 2005
| |
Note |
At
31 December 2005 |
At
31 December 2004 |
| Fixed
assets |
|
£ |
£ |
| Tangible
assets |
|
207,481 |
192,269 |
| Current
assets |
|
|
|
| Stocks |
|
188,779 |
284,567 |
|
Debtors: due within one year |
|
2,669,095 |
332,583 |
| Cash
at bank and in hand |
|
151,588 |
598,146 |
| |
|
3,009,462 |
1,215,296 |
| Creditors:
amounts falling due within one year |
|
(1,458,985) |
(2,583,225) |
| Net
current assets/(liabilities) |
|
1,550,477 |
(1,367,929) |
| Total
assets less current liabilities |
|
1,757,958 |
(1,175,660) |
Creditors:
amounts falling due after more than
one year |
|
(142,907) |
(228,017) |
| |
|
1,615,051 |
(1,403,677) |
| Capital
and reserves |
|
|
|
| Called
up share capital |
6 |
693,400 |
74,193 |
| Share
premium account |
6 |
1,697,433 |
- |
| Other
reserve |
6 |
508,503 |
80,007 |
| Merger
reserve |
6 |
5,731,082 |
2,977,934 |
| Profit
and loss account |
6 |
(7,015,367) |
(4,535,811) |
| Shareholders’
funds/(deficit) |
|
1,615,051 |
(1,403,677) |
The
financial statements were approved by the Board of Directors on 23
May 2006.
The accompanying
accounting policies and notes are an integral part of these financial
statements.
NEXTGEN GROUP PLC(formerly Shendon Plc)
CONSOLIDATED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005
| |
Note |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
|
£ |
£ |
| Net
cash outflow from operating activities |
7 |
(2,204,947) |
(1,510,489) |
| Returns
on investments and servicing of finance |
|
|
|
| Interest
received |
|
12,221 |
3,899 |
| Interest
paid |
|
(23,380) |
(25,011) |
| Finance
lease interest paid |
|
(31,594) |
(34,234) |
Net
cash outflow from returns on investments and
servicing of finance |
|
(42,753) |
(55,346) |
| Taxation |
|
226,466 |
- |
| Capital
expenditure and financial investment |
|
|
|
| Purchase
of tangible fixed assets |
|
(81,693) |
(10,510) |
| Sale
of tangible fixed assets |
|
- |
950 |
| Net
cash outflow from capital expenditure and financial investment |
|
(81,693) |
(9,560) |
| Financing |
|
|
|
| (Repayment)/receipt
from borrowing |
|
(62,500) |
(46,875) |
| Capital
elements of finance lease rentals |
|
(90,472) |
(91,348) |
| Issue
of convertible loan stock |
|
95,413 |
860,447 |
| Issue
of shares/debentures |
|
2,336,495 |
1,443,736 |
| Expenses
paid in connection with share issues |
|
(622,567) |
- |
| Net
cash inflow from financing |
|
1,656,369 |
2,165,960 |
| (Decrease)/increase
in cash |
8 |
(446,558) |
590,565 |
The accompanying
accounting policies and notes are an integral part of these financial
statements.
NOTE 1
BASIS OF PREPARATION
The financial statements have been prepared in accordance with applicable
United Kingdom accounting standards and under the historical cost
convention.
The principal
accounting policies of the group are set out below. The policies remained
unchanged from the previous year, except the group has implemented
FRS21 Events After Balance Sheet Date, FRS22 Earnings Per Share, the
presentational aspects of FRS 25 Financial Instruments: Disclosure
and Presentation, and FRS28 Corresponding Amounts. With the exception
of FRS25, the implementation of these new standards has had no significant
effect on the group’s existing disclosures.
The adoption of
FRS25 has resulted in the reclassification of convertible loan stock
from a liability to an equity instrument. In accordance with the transitional
rules for FRS25, the exemption regarding comparatives has been taken.
Accordingly there are no comparative figures given, only the disclosure
required for the current year.
BASIS OF CONSOLIDATION
NextGen Group Plc was incorporated for the purpose of achieving admission
to trading on AIM of the existing business of NextGen Sciences Limited.
This was effected by the acquisition of the entire share capital of
NextGen Sciences Limited by way of a share for share exchange.
The financial
statements have been prepared using merger accounting principles on
the basis that the formation of NextGen Group Plc as the Parent of
NextGen Sciences Limited on 9 December 2005 qualifies as a group reconstruction
and the financial statements should be prepared as if the companies
have always been one entity. The financial information for the year
ended 31 December 2005 therefore represents NextGen Sciences Limited.
The Group financial statements consolidate the financial statements
of NextGen Sciences Limited (the “Company”) and its subsidiary
undertaking (collectively the “Group”), drawn up to 31
December each year. Acquisitions of subsidiaries are dealt with by
the acquisition method of accounting except for those qualifying as
group reconstructions where merger accounting is permitted. All inter
company balances and transactions have been eliminated on consolidation.
TURNOVER
Turnover is the total amount receivable by the Group for goods supplied
and services provided, excluding VAT and trade discounts.
Revenue is recognised
when the contracted services have been fulfilled. Where completion
of a sale is conditional upon customer acceptance, recognition is
deferred until such acceptance is received.
Revenue for product
service and upgrades is recognised over the period during which the
service is provided. Where service and upgrades are included in the
price of the product, they are unbundled and treated separately for
purposes of revenue recognition.
Royalties are
recognised over the period to which such royalties relate.
RESEARCH
AND DEVELOPMENT
Research and development expenditure is written off to the profit
and loss account in the year in which it is incurred.
TANGIBLE
FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at cost, net of depreciation. Depreciation
is calculated to write off the cost less estimated residual value
of each asset on a straight-line basis over its expected useful life
as follows:
| Plant,
machinery and office equipment |
3
years |
| Fixtures
and fittings |
1
to 5 years |
| Computer
equipment |
3
years |
| Motor
Vehicles |
3
years |
LEASE
AND HIRE PURCHASE COMMITMENTS
Assets held under finance leases and other similar contracts, which
confer rights and obligations similar to those attached to owned assets,
are capitalised as tangible fixed assets and are depreciated over
the shorter of the term of the lease and their expected useful lives.
The capital elements of future lease obligations are recorded as liabilities,
while the finance elements are charged to the profit and loss account
over the period of the lease so as to produce a constant rate of charge
on the balance of the capital repayments outstanding. Hire purchase
transactions are dealt with similarly, except that assets are depreciated
over their useful lives.
All other leases are regarded as operating leases and the payments
made under them are charged to the profit and loss account on a straight-line
basis over the lease term, even if the payments are not made on such
a basis. Benefits received and receivable as an incentive to sign
an operating lease are similarly spread on a straight line basis over
the lease term, except where the period to the review date on which
the rent is first expected to be adjusted to the prevailing market
rate is shorter than the full lease term, in which case the shorter
period is used.
STOCKS
Stocks are stated at the lower of cost and net realisable value. Net
realisable value is based on estimated selling price, less further
costs expected to be incurred to completion and disposal. Provision
is made for obsolete and slow moving or defective items where appropriate.
RETIREMENT BENEFITS
The Group operates a defined contribution scheme under which the amount
charged to the profit and loss account is the contributions payable
in the year. Differences between contributions payable in the year
and contributions actually paid are shown as either creditors, accruals
or prepayments in the balance sheet.
DEFERRED
TAXATION
Deferred tax is recognised on all timing differences where the transactions
or events that give the Group an obligation to pay more tax in the
future, or a right to pay less tax in the future, have occurred by
the balance sheet date. Deferred tax assets are recognised when it
is more likely than not that they will be recovered. Deferred tax
is measured using rates of tax that have been enacted or substantively
enacted by the balance sheet date.
FOREIGN CURRENCY
Transactions in foreign currencies are translated at the exchange
rate ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated
at the rates of exchange prevailing at that date. Exchange differences
are taken into account in arriving at the operating loss.
EMPLOYEE
SHARE OPTION SCHEMES
In accordance
with Urgent Issues Task Force Abstract 17 “Employee Share Schemes”
the cost of awards to employees that take the form of shares or rights
to shares is recognised as a charge to the profit and loss account.
The amount charged to profit and loss is the difference between the
“market value” at the time of grant (as agreed with the
Inland Revenue) and the exercise price and a corresponding credit
is made to reserves.
FINANCIAL INSTRUMENTS
Financial
liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity
instrument is any contract that evidences a residual interest in the
assets of the entity after deducting all of its financial liabilities.
Where
the contractual obligations of financial instruments (including share
capital) are equivalent to a similar debt instrument, those financial
instruments are classed as financial liabilities. Financial liabilities
are presented as such in the balance sheet. Finance costs and gains
or losses relating to financial liabilities are included in the profit
and loss account. Finance costs are calculated so as to produce a
constant rate of return on the outstanding liability.
Where
contractual terms of a financial instrument do not have any terms
meeting the definition of a financial liability then this is classed
as an equity instrument. Dividends and distributions relating to equity
instruments are debited direct to equity.
In accordance
with the transitional rules for FRS 25, the exemption regarding comparatives
has been taken. Accordingly there are no comparative figures given,
only the disclosure required for the current year.
Previously
the convertible loan stock was recognised as a liability of the group.
Financial
assets are recognised in the balance sheet at the lower of cost and
net realisable value. Income and expenditure arising on financial
instruments is recognised on the accruals basis and credited or charged
to the profit and loss account in the financial period to which it
relates.
NOTE
2 GOING CONCERN
The financial statements have been prepared on a going concern basis,
which assumes that the Group will continue to trade for the foreseeable
future. During the year the Group incurred losses after taxation of
£2,479,556 and had a profit and loss account in deficit by £7,015,367.
The nature and stage of the Group's business are such that there can
be considerable unpredictable variations in the timing of cash inflows.
The Group's plans for growth may necessitate alternative funding levels
and the Directors are considering the need for such additional funds.
The Directors have prepared projected cash flow information, which
incorporates their best estimate of the timing and value of sales
revenue and consequential external funding requirements. On the basis
of these forecasts the Directors expect the Group to continue to meet
its liabilities as they fall due. For this reason the Directors continue
to adopt the going concern basis in preparing the financial statements.
This assumes that required levels of sales revenue and forecast external
funding are achieved by the Group. The financial statements do not
include any adjustments that would result should the Group not generate
forecast sales revenue or raise adequate funding.
NOTE 3 TURNOVER
The turnover is attributable to geographical area as follows:
| |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
£ |
£ |
| United
Kingdom |
158,910 |
604,000 |
| United
States of America |
629,732 |
- |
| Rest
of World |
222,891 |
7,766 |
| |
1,011,533 |
611,766 |
NOTE
4 OTHER OPERATING CHARGES - EXCEPTIONAL ITEMS
| |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
£ |
£ |
| Compensation
for loss of office for a former director of NextGen Sciences Limited |
114,000 |
- |
NOTE
5 LOSS PER SHARE
The calculation of the basic loss per share is based on the loss attributable
to ordinary shareholders divided by the weighted average number of
shares in issue during the year.
Reconciliation
of the loss and weighted average number of shares used in the calculations
are set out below:
| |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
£ |
£ |
| Loss
attributable to ordinary shareholders |
£2,479,556 |
£2,281,870 |
| Weighted
average number of shares |
178,102,563 |
49,132,216 |
| Loss
per share |
1.4p |
4.6p |
By virtue of the
loss incurred in 2005 and 2004, a diluted loss per share calculation
is not appropriate.
NOTE 6 RECONCILIATION OF SHAREHOLDERS FUNDS AND MOVEMENT ON
RESERVES
| Group
Share |
Capital |
Share
premium |
Merger
reserve |
Other
reserve |
Profit
and loss |
Total
share-holders funds |
| |
£ |
£ |
£ |
£ |
£ |
£ |
| At
1 January 2004 |
10,025 |
1,900,725 |
- |
80,007 |
(2,253,941) |
(263,184) |
| Share
issue |
15,559 |
1,148,981 |
- |
- |
- |
1,164,540 |
| Share
issue costs |
- |
(23,163) |
- |
- |
- |
(23,163) |
| Retained
loss for the year |
- |
- |
- |
- |
(2,281,870)
|
(2,281,870) |
| Share
for share exchange |
74,193 |
- |
- |
- |
- |
74,193 |
| Merger
adjustment |
(25,584) |
(3,026,543) |
2,977,934 |
- |
- |
(74,193) |
| At
31 December 2004 |
74,193 |
- |
2,977,934 |
80,007 |
(4,535,811) |
(1,403,677) |
| Reclassification
of convertible loan stock |
- |
- |
- |
860,447 |
- |
860,447 |
| At
1 January 2005 restated |
74,193 |
- |
2,977,934
|
940,454 |
(4,535,811) |
(543,230) |
| Additional
convertible loan stock issued |
- |
- |
- |
95,413 |
- |
95,413 |
|
|
|
|
|
|
|
| Conversion
of loan stock to share capital |
11,947 |
943,913 |
- |
(955,860) |
- |
- |
| Allotment
during the year |
173,988 |
- |
- |
- |
- |
173,988 |
| Premium
on allotment |
- |
2,162,507 |
- |
- |
- |
2,162,507 |
| Share
for share exchange |
539,205 |
- |
- |
- |
- |
539,205 |
| Proceeds
from issue of shares |
80,000 |
2,320,000 |
- |
- |
- |
2,400,000 |
| Share
issue costs |
- |
(622,567) |
- |
- |
- |
(622,567) |
| Share
options awarded at discount to market value |
- |
- |
- |
428,496 |
- |
428,496 |
| Merger
adjustment |
(185,933) |
(3,106,420) |
2,753,148 |
- |
- |
(539,205) |
| Retained
loss for the year |
- |
- |
- |
- |
(2,479,556) |
(2,479,556) |
| At
31 December 2005 |
693,400 |
1,697,433 |
5,731,082 |
508,503 |
(7,015,367) |
(1,615,051) |
The share
for share exchange occurred on 9 December 2005 when the share capital
and share premium account of NextGen Sciences Limited amounted to
£6,344,480 of which £3,292,353 related to shares issued
during the year ended 31 December 2005. The shares issued in the share
for share exchange allocated to the year ended 31 December 2004 are
based on the number of shares that would have been required to be
issued by NextGen Group PLC to acquire all of the shares in NextGen
Sciences Limited as of that date.
The shares issued in the share for share exchange allocated to the
year ended 31 December 2005 are based on the number of shares that
would have been required to be issued by NextGen Group PLC to acquire
the shares in NextGen Sciences Limited that had been issued by NextGen
Sciences Limited during that year.
The merger adjustment for the years ended 31 December 2004 and 31
December 2005 therefore represents the difference between the value
of the shares issued in the share for share exchange and the value
of shares in NextGen Sciences Limited. This has been allocated based
on the shares issued by NextGen Sciences Limited at 31 December 2004
and the shares issued during the year ended 31 December 2005 by NextGen
Sciences Limited.
NOTE 7 NET CASH OUTFLOW FROM OPERATING ACTIVITIES
| |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
£ |
£ |
| Operating
loss |
(2,663,269) |
(2,226,524) |
| Depreciation |
134,827 |
164,798 |
| Loss
on sale of tangible fixed assets |
- |
376 |
| Share
option charge |
428,496 |
- |
| Decrease/(increase)
in stock |
95,788 |
(264,474) |
| Decrease/(increase)
in debtors |
63,488 |
(230,529) |
| (Decrease)/increase
in creditors |
(264,277) |
1,045,864 |
| Net
cash outflow from operating activities |
(2,204,947) |
(1,510,489) |
NOTE
8 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
| |
Year
ended 31 December 2005 |
Year
ended 31 December 2004 |
| |
£ |
£ |
| (Decrease)
/increase in cash in the year |
(446,558) |
590,565 |
| Cash
outflow from financing (i.e. debt) |
62,500 |
46,875 |
| Cash
inflow from convertible loan stock |
(95,413) |
(860,447) |
| Cash
inflow from finance leases |
90,472 |
91,348 |
| Change
in net debt resulting from cash flows |
(388,999) |
131,659 |
| Conversion
of convertible loan stock |
955,860 |
- |
| Inception
of finance leases |
(68,346) |
(49,799) |
| Movement
in net debt in the year |
887,514 |
(49,799) |
| Movement
in net debt |
498,515
|
(181,458) |
| Net
debt at start of year |
(643,921) |
(462,463) |
| Net
debt at end of year |
(145,406) |
(643,921) |
NOTE 9 ANALYSIS OF CHANGES IN NET DEBT
| |
At
1 January 2005 |
Cash
flow |
Non
cash items |
At 31 December 2005 |
| |
£ |
£ |
£ |
£ |
| Cash
in hand |
598,146 |
(446,558) |
- |
151,588 |
| Debts |
(203,125) |
62,500 |
- |
(140,625) |
| Convertible
loan stock |
(860,447) |
(95,413) |
955,860 |
- |
| Finance
leases |
(178,495) |
90,472 |
(68,346) |
(156,369) |
| |
(643,921) |
(388,999) |
887,514 |
(145,406) |
Major
non-cash transactions
During
the year, £955,860 of convertible loan stock was converted into
11,947,000 shares.
| |
At
1 January 2005 |
Cash
flow |
Non
cash items |
At 31 December 2005 |
| |
£ |
£ |
£ |
£ |
| Cash
in hand |
7,581 |
590,565 |
- |
598,146 |
| Debts |
(250,000) |
46,875 |
- |
(203,125) |
| Convertible
loan stock |
- |
(860,447) |
- |
(860,447) |
| Finance
leases |
(220,044) |
91,348 |
(49,799) |
(178,495) |
| |
(462,463) |
(131,659) |
(49,799) |
(643,921) |
NOTE
10
The consolidated profit and loss account, consolidated balance sheet
and consolidated cash flow statement and associated notes for the
year ended 31 December 2005 have been extracted from the group’s
audited financial statements. These financial statements have not
been delivered to the Registrar. The comparatives have been extracted
from the statutory financial statements of NextGen Sciences Limited,
which have been filed with the Registrar, except as explained in Note
6.
|
