FOR IMMEDIATE
RELEASE 29
September 2009
REGEN THERAPEUTICS PLC
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2009
ReGen Therapeutics Plc ('ReGen' or the 'Company' or the 'Group') has
published its interim results for the six months to 30 June 2009
CHAIRMAN'S STATEMENT
SALES:
Before commenting on the figures, I think it is necessary for people
to understand what exactly ReGen sales comprise. ReGen's sales are
of bulk active ingredient supplied as a freeze-dried powder .The
Company also generates royalty income. As we have consistently said,
the most significant return to ReGen is from the sale of the active
ingredient. As ReGen only has two customers at the moment sales of
the product are lumpy. This lumpiness is exaggerated by the need to
produce tablets in very large quantities to keep production costs as
low as possible.
Therefore, investors should not immediately assume that because ReGen
has recorded relatively low sales in the first half of the year the
retail sales of Colostrinin(TM) have ceased. Sales are continuing
and indeed ReGen's sales in the second half of the year have already
exceeded the first half's figures. The lumpiness of sales will only
be changed when ReGen supplies a number of different parties and it
anticipates more customers coming on stream in the ensuing twelve
months.
COST CUTTING:
Turning now to the make up of the figures for the period. We said in
our 2008 Report and Accounts that we had cut costs significantly and
indeed we have. Total administrative expenses are down to £345,000
from £920,000, a fall of nearly two thirds compared with the
corresponding period in 2008. We said last autumn that we could
exploit our IP without incurring significant costs and this we are
attempting to do. Development costs are only £3,836 against £240,908
in the corresponding period last year. Having cut development costs
does not mean we are abandoning our Intellectual Property Portfolio
and we have spent £20,000 in the first half of the year on patenting
costs. The net effect of our actions is to have reduced the retained
loss for the period to £342,000, compared with £1,059,000 in the
first half of 2008. The weighted average loss per share (basis and
diluted) has been reduced to 1.69 pence from 9.75 over the same
period.
FUNDING:
So far we have raised £613,185 during 2009. Of this £397,185 was
raised in the first half of the year. We think it is an important
fact that we have been able to raise this sum of money during one of
the most difficult economic years in recent history when capital
raising, especially for small companies, has been extremely
difficult.
PROSPECTS:
The end of this year and next year are a crucial time for ReGen:
* PRG Nutraceuticals* launched in the UK on 28 September
2009.
* Turkish approval is expected within 2009.
* We are in late stage discussions in two new major markets
for Colostrinin(TM).
* Metagenics is now part of Alticor/Amway and the enhanced
marketing strength that this gives Metagenics should increase North
American sales.
* A global player is investigating Colostrinin(TM) and the
peptides for anti-obesity activity and results on this are expected
in 2010.
The Board believes that the Company is on track to achieve
profitability in 2010 and is encouraged by the continuing support of
it shareholders.
Percy Lomax
Executive Chairman
Copies of this interim statement are available from the Company's
offices at 73, Watling Street, London EC4M 9BJ, or by visiting our
website at www.regentherapeutics.com
* PRG Nutraceuticals website www.memoryaid.com
For further information contact:
Percy Lomax
ReGen Therapeutics Plc
Tel: 020 7153 4920
Roland Cornish/Felicity Geidt
Beaumont Cornish Limited
Tel: 020 7628 3396
David Scott/Nick Bealer
Alexander David Securities Limited
Tel: 020 7448 9820
ReGen Therapeutics Plc
Interim Results for the Six Months
to 30 June 2009
Consolidated Statement of
Comprehensive Income
For the six months ended 30
June 2009
Unaudited Unaudited Audited
6 months to 6 months to Year to
30-Jun-09 30-Jun-08 31-Dec-08
(£000) (£000) (£000)
Continuing operations
Revenue 9 91 92
Cost of sales (1) (26) (21)
Gross profit 8 65 71
Research and development
costs 4 241 330
Other administrative costs 345 920 1,258
Administrative costs 349 1,161 1,588
Operating loss ` (341) (1,096) (1,517)
Finance income - 9 10
Finance costs - (3) (3)
Loss before taxation (341) (1,090) (1,510)
Taxation Note 2 - 60 81
Loss after taxation for
continuing activities (341) (1,030) (1,429)
Discontinued operations
Loss after taxation from
discontinued operations (1) (29) (34)
Comprehensive and total
comprehensive loss after
taxation for the period (342) (1,059) (1,463)
Loss per share (basic and
diluted) Note 3 (1.69p) (9.75p) (12.27p)
Loss per share on continuing
operations (basic and
diluted) (1.69p) (9.48p) (11.98p)
Loss per share on
discontinued operations
(basic and diluted) (0.01p) (0.27p) (0.29p)
ReGen Therapeutics Plc
Consolidated Statement of
Financial Position
Unaudited Unaudited Audited
As at As at As at
30-Jun-09 30-Jun-08 31-Dec-08
(£000) (£000) (£000)
Assets
Non current assets
Goodwill 965 965 965
Other intangible assets 797 809 794
Property, plant and equipment 1 2 1
Total non current assets 1,763 1,776 1,760
Current assets
Inventories 40 22 29
Trade and other receivables 65 199 87
Tax receivable 81 60 81
Cash and cash equivalents 41 177 25
Total current assets 227 458 222
Total assets 1,990 2,234 1,982
Liabilities
Current liabilities
Trade and other payables 476 426 490
Loans and borrowings 53 75 52
Total current liabilities 529 501 542
Non current liabilities
Provisions 100 100 100
Total liabilities 629 601 642
Total net assets 1,361 1,633 1,340
Equity
Capital and reserves
Share capital - Issued and fully
paid Note 4 3 1,134 2
- Deferred
B shares 1,305 - 1,305
- Deferred
A shares 5,298 5,298 5,298
Share premium 14,509 14,078 14,147
Other reserves 266 266 266
Retained earnings (20,020) (19,143) (19,678)
Total equity 1,361 1,633 1,340
ReGen Therapeutics Plc
Consolidated Statement of
Cash Flows
Unaudited Unaudited Audited
6 months to 6 months to Year to
30-Jun-09 30-Jun-08 31-Dec-08
(£000) (£000) (£000)
Loss after tax from
continuing activities (341) (1,030) (1,429)
Loss after tax from
discontinued activities (1) (29) (34)
Loss after tax for the
period (342) (1,059) (1,463)
Amortisation of intangible
assets 17 230 298
Depreciation of property,
plant and equipment 1 1 2
Share option charge - 35 (96)
Interest charged 1 5 8
Interest credited - (9) (10)
Taxation credit - (60) (81)
Taxation received - 146 146
Operating cash flows before
movements in working capital
and provisions (323) (711) (1,196)
Increase in inventories (12) (16) (22)
Decrease in receivables 22 13 126
(Decrease)/increase in
payables (14) 115 178
Net cash outflow from
operating activities (327) (599) (914)
Cash flows from investing
activities
Interest received - 9 10
Purchase of intangible
assets (20) (57) (111)
Net cash used in investing
activities (20) (48) (101)
Cash flows from financing
activities
Proceeds from issue of share
capital 407 325 677
Expenses paid on share issue (44) (108) (218)
Interest paid (1) (5) (8)
Net cash from financing
activities 362 212 451
Net increase/(decrease) in
cash and cash equivalents 15 (435) (564)
Opening cash and cash
equivalents (27) 537 537
Closing cash and cash
equivalents Note 5 (12) 102 (27)
ReGen Therapeutics Plc
Consolidated Statement Of Changes In Shareholders' Equity
Share Share Other Retained
Capital Premium Reserves Earnings Total
(£000) (£000) (£000) (£000) (£000)
At 1 January 2008 6,324 13,969 266 (18,119) 2,440
Loss for the period - - - (1,059) (1,059)
Total comprehensive income
and expense for the period - - - (1,059) (1,059)
Net issue of share capital 108 109 - - 217
Recognition of share-based
payments - - - 35 35
Balance at 30 June 2008 6,432 14,078 266 (19,143) 1,633
Loss for the period - - - (404) (404)
Total comprehensive income
and expense for the period - - - (404) (404)
Net issue of share capital 173 69 - - 242
Recognition of share-based
payments - - - (131) (131)
Balance at 31 December 2008 6,605 14,147 266 (19,678) 1,340
Loss for the period - - - (342) (342)
Total comprehensive income
and expense for the period - - - (342) (342)
Net issue of share capital 1 362 - - 363
Balance at 30 June 2009 6,606 14,509 266 (20,020) 1,361
Notes to the Interim Results
Six Months Ended 30 June 2009
1. Basis of preparation
This financial information has been prepared using the recognition
and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations
adopted for use in the European Union (collectively Adopted IFRSs).
The principal accounting policies used in preparing the interim
results are those the group expects to apply in its financial
statements for the year ending 31 December 2009 and are unchanged
from those disclosed in the group's Report and Financial Statements
for the year ended 31 December 2008, except for the impact of the
Standards and Interpretations described below:
- Revised IFRS 8 Operating Segments - effective for annual periods
beginning or after 1 January 2009. IFRS 8 is a disclosure standard
that has resulted in a re-designation of the Group's reportable
segments, but has no impact on the reported results or financial
position of the Group.
- IAS 1 (revised 2007) Presentation of Financial Statements -
effective for annual periods beginning on or after 1 January 2009.
IAS 1 (revised 2007) presents transactions with owners in detail and
non-owner changes in equity as a single line in the statement of
changes in equity. The standard introduces a Condensed Consolidated
Statement of Comprehensive Income which presents all items of
unrecognised income and expense and is linked to the Consolidated
Income Statement. In addition, the Consolidated Balance Sheet has
been renamed to Condensed Consolidated Statement of Financial
Position and the Consolidated Cash Flow Statement has been renamed to
Condensed Consolidated Statement of Cash Flows.
The Interim Statement has not been audited nor reviewed by the
Company's auditors. The comparatives for the full year ended 31
December 2008 are not the Company's full statutory accounts for that
year. A copy of the statutory accounts for that year, which were
prepared under IFRS, have been delivered to the Registrar of
Companies. The auditors' report on those accounts was unqualified and
included references to going concern which the auditors drew
attention to by way of emphasis without qualifying their report and
did not contain a statement under Section 237(2)-(3) of the Companies
Act 1985.
2. Taxation
The interim tax credit reflects an estimate of the likely effective tax rate for the period.
3. Loss per share
6 months to 6 months to Year to
30-Jun-09 30-Jun-08 31-Dec-08
Numerator
Loss for the period 342,000 1,059,000 1,463,367
Denominator
Weighted average number of shares of 0.01p 20,186,360 10,861,942 11,926,992
The Company has instruments that could potentially dilute basic
earnings per share in the future, but that have not been included in
the calculation of diluted earnings per share because they are
antidilutive for the periods presented.
There are 20,463 share options in issue that are currently
anti-dilutive.
4. Share Capital
On 5 January 2009, the Company issued 350,000 ordinary shares of
0.01p each at a premium of 3.99p per share for a consideration of
£14,000.
On 15 January 2009, the Company issued 400,000 ordinary shares of
0.01p each at a premium of 3.49p per share for a consideration of
£14,000.
On 18 February 2009, the Company issued 2,171,834 ordinary shares of
0.01p each at a premium of 2.99p per share for a consideration of
£65,155.
On 18 February 2009, the Company issued 100,000 ordinary shares of
0.01p each at a premium of 9.99p per share for a consideration of
£10,000.
On 19 February 2009, the Company issued 1,751,666 ordinary shares of
0.01p each at a premium of 2.99p per share for a consideration of
£52,550.
On 25 March 2009, the Company issued 700,000 ordinary shares of 0.01p
each at a premium of 3.99p per share for a consideration of £28,000.
On 7 April 2009, the Company issued 2,149,332 ordinary shares of
0.01p each at a premium of 3.99p per share for a consideration of
£64,480.
On 15 April 2009, the Company issued 800,000 ordinary shares of 0.01p
each at a premium of 2.99p per share for a consideration of £24,000.
On 24 April 2009, the Company issued 2,000,000 ordinary shares of
0.01p each at a premium of 2.99p per share for a consideration of
£60,000.
On 4 June 2009, the Company issued 1,000,000 ordinary shares of 0.01p
each at a premium of 2.99p per share for a consideration of £30,000.
On 12 June 2009, the Company issued 500,000 ordinary share of 0.01p
each at a premium of 2.99p per share for a consideration of £15,000.
On 22 June 2009, the Company issued 1,000,000 ordinary share of 0.01p
each at a premium of 2.99p per share for a consideration of £30,000.
5. Note supporting cash flow statement
+-------------------------------------------------------------------+
| Cash and cash equivalents | | | |
| comprises: | | | |
|-------------------------------+-----------+-----------+-----------|
| | Unaudited | Unaudited | Audited |
|-------------------------------+-----------+-----------+-----------|
| | As at | As at | As at |
|-------------------------------+-----------+-----------+-----------|
| | 30-Jun-09 | 30-Jun-08 | 31-Dec-08 |
|-------------------------------+-----------+-----------+-----------|
| | (£000) | (£000) | (£000) |
|-------------------------------+-----------+-----------+-----------|
| | | | |
|-------------------------------+-----------+-----------+-----------|
| Cash available on demand | 40 | 104 | 8 |
|-------------------------------+-----------+-----------+-----------|
| Short-term deposits | 1 | 73 | 17 |
|-------------------------------+-----------+-----------+-----------|
| | | | |
|-------------------------------+-----------+-----------+-----------|
| | | | |
|-------------------------------+-----------+-----------+-----------|
| Cash and cash equivalents | 41 | 177 | 25 |
|-------------------------------+-----------+-----------+-----------|
| Overdraft | (53) | (75) | (52) |
|-------------------------------+-----------+-----------+-----------|
| | | | |
|-------------------------------+-----------+-----------+-----------|
| | | | |
|-------------------------------+-----------+-----------+-----------|
| | (12) | 102 | (27) |
|-------------------------------+-----------+-----------+-----------|
| | | | |
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