REG - Biome Technologies - Interim Results

Biome TechnologiesAnnouncement

12/09/2019 07:05

RNS Number : 0415M
Biome Technologies PLC
12 September 2019
 


12 September 2019
 
Biome Technologies plc
("Biome", "the Company" or "the Group")
 
Interim Results
 
  
Biome Technologies plc announces its unaudited Interim Results for the six months ended 30 June 2019.
 Highlights
·      The Group generated revenues of £3.6m and gross profit of £1.7m
·      The Biome bioplastics division is continuing towards becoming the principal revenue generator for the Group
·      Biome bioplastics revenues were generated from both existing products as well as the early phase of commercialisation of three new products
·      Stanelco RF division trading in line with normalised levels of fibre optic furnace demand
 
Paul Mines, Chief Executive Officer said:
"The first half of 2019 has seen substantial progress in the commercialisation of three new products in the Bioplastics division with initial revenues in the latter part of the period. Against this backdrop it is anticipated that the Group will evolve with the Bioplastics division becoming the principal revenue generator in coming periods."
 
  
- Ends -




 
 
 
For further information please contact: Biome Technologies plc




 
Paul Mines, Chief Executive Officer




Declan Brown, Group Finance Director




www.biometechnologiesplc.com


Tel: +44 (0) 2380 867 100




 
Allenby Capital




David Hart/Alex Brearley (Nominated Adviser)
Kelly Gardiner (Broker)




www.allenbycapital.com


Tel: +44 (0) 20 3328 5656




 
 




 


 




About Biome
Biome Technologies plc (Ticker:BIOM) is an AIM listed, growth-orientated, commercially driven technology group. Our strategy is founded on building market-leading positions based on patented technology and serving international customers in valuable market sectors. We have chosen to do this by developing products in application areas where the value-added pricing can be justified and that are not reliant on government legislation. These products are driven by customer requirements and are compatible with existing manufacturing processes. They are market rather than technology-led.
 
The Group comprises two divisions, Biome Bioplastics Limited and Stanelco RF Technologies Limited. Biome Bioplastics is a leading developer of highly-functional, bio-based and biodegradable plastics. The company's mission is to produce bioplastics that challenge the dominance of oil-based polymers. Stanelco RF Technologies designs, builds and services advanced radio frequency (RF) systems. Dielectric and induction heating products are at the core of a product offering that ranges from portable sealing devices to large furnaces for the fibre optics markets.
 
In 2018, the Board adopted the following three high level KPIs for the next three years to continue its ambitious momentum:
 
·      Compound revenue growth of 25% per annum across the Group and 40% compound revenue growth in the Bioplastics division
·      Diversify the Group's turnover by product and market to ensure that no one product or end customer contributes more than 15% of revenues by 2020
·      Increase investment in the Group's next generation of products by spending significantly more per annum on average than the £0.3m per annum average spend over the previous strategic objective cycle
 
www.biometechnologiesplc.com
www.biomebioplastics.com and www.thinkbioplastic.com 
www.stanelcorftechnologies.com
 
#ThinkBioplastic is our digital educational platform, launched in October 2018 in response to the emerging global plastic conversation. It speaks to a wide audience, highlighting bioplastics as a leading solution among several to reduce the negative impact of plastic manufacture and disposal. Following the much acclaimed first series of short videos the second series was recently released.
 
 
 
 
Chairman's Statement
 
 The Group's Bioplastics division continues its strong growth path towards becoming the principal revenue generator for the Group. In that context, the Bioplastics division delivered a more than 50% increase in revenues in the first half of the year. Group revenues were £3.6m 2019 (H1 2018: £4.4m) which reflected a more normal level of revenue at the Stanelco RF Technologies division after the exceptional level of sales in 2018.
 
Gross profit was £1.7m (H1 2018: £2.3m) impacted by the effect of the revenues highlighted above. The overall gross margin for the Group was 48% (H1 2018: gross margin 53%) reflecting the increased weighting of sales towards the Bioplastics division.
 
The Group recorded a small loss before interest, depreciation, amortisation and share option charges for the six months to 30 June 2019 of £0.2m (H1 2018: £0.5m profit). The loss after taxation was £0.5m (H1 2018: £0.2m profit), which equates to a loss per share of 20 pence on a basic basis and diluted basis (H1 2018: profit per share of 9 pence on a basic and diluted basis).
 
The Group's cash position as at 30 June 2019 was £1.7m (31 December 2018: £2.6m) reflecting the increase in working capital requirements in line with activity.
 
 
Biome Bioplastics Division
 
Revenues in the Bioplastics division for the first half of 2019 were £1.4m (H1 2018: £0.9m) with this turnover reflecting increases in existing products as well as the early phase of commercialisation of three new products.
 
The operating loss for the period was £0.3m (2018: operating loss of £0.3m).
 
We gained some initial revenues for the following three products with customers in the USA in the first half of the year:
 
·      a new material for single serve pods in the sports nutrition market
·      a new material for use in the compostable disposable cutlery market
·      plastic film products for a new customer
 
It is anticipated that revenues from these products will increase over the coming quarters as they scale up in line with customer demands.
 
The Bioplastics team is now also working on a strong product development pipeline of other opportunities with a variety of existing and new customers.
 
To further these opportunities, a number of new commercial and technical team members have been recruited into the business in the last 12 months and they are all now making significant contributions alongside their more experienced colleagues. Sally Morley, until recently the Commercial Director of the division, has recently been appointed Managing Director. This strengthening of the team's leadership has enabled other organisational changes as the business adjusts to heightened levels of activity in both manufacturing and development. 
 
The division has continued with its mid-term strategy to develop a new range of lignocellulose-derived bioplastics, with the aim of generating bio-based and biodegradable plastic products with increased performance that can be produced at a cost more comparable to traditional plastics made from petro-chemicals. This work is supported by a number of government grants. During the first half of the year, development work commenced on the scale up of one of the new monomers in conjunction with Nottingham University. Further updates on the progress of these projects will be made as they evolve.
  
 
Stanelco RF Technologies Division
 
Revenues in the RF Technologies division were £2.2m (H1 2018: £3.5m) reflecting a return to the more normalised levels of fibre optic furnace demand from the previously reported exceptional demand recorded in 2018. As a result of this, operating profit recorded in the first half of the year was £0.6m (H1 2018: £1.3m).
 
The division signed a £1.3m contract for the supply of a number of fibre optic furnaces in the second half of 2019 and it is against this backdrop that the Board continues to expect full year revenues for this division to be in line with those of 2017.
 
 
Outlook
 
The Bioplastics division has made substantial progress in its aim of commercialising new products within the last six months and additional revenue growth is expected in forthcoming quarters. In line with its previous expectations, the Board anticipates that the Bioplastics division will maintain a gradual but sustained increase in revenues in 2019 and will eclipse the RF Technologies division as the main revenue generator for the Group in a year or so.
 
The commercial opportunities in bioplastics that we are sourcing are growing in scale and improving in quality. The Board will continue to use all available means possible to take advantage of this change in market dynamic for the benefit of shareholders.
 
 
John Standen
Chairman
                                                             
 
 




CONSOLIDATED STATEMENT


 


 


 


 




OF COMPREHENSIVE INCOME


 


 


 


 




For the period ended 30 June 2019


 


 


 


 




 


 


Total for


Total for


 




 


 


6 Months


6 Months


Total Year




 


 


Ended


Ended


Ended




 


 


30 June


30 June


31 December




 


 


2019


2018


2018




 


 


Unaudited


Unaudited


Audited




 


Note


£'000


£'000


£'000




 


 


 


 


 




REVENUE


5a - 5c


3,605


4,391


8,850




Cost of sales


 


(1,890)


(2,068)


(4,042)




 


 


 


 


 




GROSS PROFIT


 


1,715


2,323


4,808




 


 


 


 


 




Administrative expenses


 


(2,210)


(2,117)


(4,745)




 


 


 


 


 




PROFIT/(LOSS) FROM OPERATIONS


5a - 5c


(495)


206


63




 


 


 


 


 




Profit/(Loss) from operations before share options charges


 


(424)


311


281




Share options charges


 


(71)


(105)


(218)




 


 


 


 


 




Investment revenue


 


3


2


4




Foreign exchange gain


 


8


8


17




 


 


 


 


 




PROFIT/(LOSS) BEFORE TAXATION


 


(484)


216


84




Taxation


6


-


-


59




 


 


 


 


 




TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT


 


(484)


216


143




 


 


 


 


 




Basic earnings/(loss) per share - pence


7


(20)


9


6




Diluted earnings/(loss) per share - pence


7


(20)


9


5




 
 
 
 




CONSOLIDATED STATEMENT


 


 


 


 




OF FINANCIAL POSITION


 


 


 


 




As at 30 June 2019


 


 


 


 




 


 


At


At


At




 


 


30 June


30 June


31 December




 


 


2019


2018


2018




 


 


Unaudited


Unaudited


Audited




 


Note


£'000


£'000


£'000




 


 


 


 


 




NON-CURRENT ASSETS


 


 


 


 




Other intangible assets


8


931


891


918




Property, plant and equipment


9


179


161


185




 


 


1,110


1,052


1,103




 


 


 


 


 




CURRENT ASSETS


 


 


 


 




Inventories


10


548


861


955




Trade and other receivables


11


1,232


1,555


873




Cash and cash equivalents


 


1,731


2,307


2,614




 


 


3,511


4,723


4,442




 


 


 


 


 




TOTAL ASSETS


 


4,621


5,775


5,545




 


 


 


 


 




CURRENT LIABILITIES


 


 


 


 




Trade and other payables


12


1,281


2,063


1,792




 


 


1,281


2,063


1,792




 


 


 


 


 




TOTAL LIABILITIES


 


1,281


2,063


1,792




 


 


 


 


 




NET ASSETS


 


3,340


3,712


3,753




 


 


 


 


 




EQUITY


 


 


 


 




Share capital


 


118


118


118




Share premium account


 


805


793


805




Capital redemption reserve


 


4


4


4




Share options reserve


 


314


214


316




Translation reserve


 


(85)


(85)


(85)




Retained profits


 


2,184


2,668


2,595




 


 


 


 


 




EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT AND TOTAL EQUITY


 


3,340


3,712


3,753




 
The interim statements were approved by the Board on 11 September 2019.
 
Signed on behalf of the Board of Directors
 
Paul R Mines (Chief Executive)
Declan L Brown (Group Finance Director)
11 September 2019
  
 
 




CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


 


 


 


 


 


 


 




As at 30 June 2019


 


 


 


 


 


 




 


Share
capital


Share
premium
account


Capital redemption
reserve


Share options
reserve


Translation reserve


Retained earnings


TOTAL
EQUITY




 


£'000


£'000


£'000


£'000


£'000


£'000


£'000




Unaudited


 


 


 


 


 


 


 




Balance at 1 January 2019


118


805


4


316


(85)


2,595


2,595




 


 


 


 


 


 


 


 




Share options issued in share based payments


-


-


-


71


-


-


71




Cancellation of time expired share options


-


-


-


(73)


-


73


-




Transactions with owners


-


-


-


(2)


-


73


71




 


 


 


 


 


 


 


 




Loss for the period


-


-


-


-


-


(484)


(484)




Total comprehensive income for the period


-


-


-


-


-


(484)


(484)




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Balance 30 June 2019


118


805


4


314


(85)


2,184


3,340




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Unaudited


 


 


 


 


 


 


 




Balance at 1 January 2018


117


740


4


219


(85)


2,342


3,337




 


 


 


 


 


 


 


 




Issue of share capital


1


53


-


-


-


-


54




Share options issued in share based payments


-


-


-


105


-


-


105




Cancellation of time expired share options


-


-


-


(110)


-


110


-




 


 


 


 


 


 


 


 




Transactions with owners


1


53


-


(5)


-


110


159




 


 


 


 


 


 


 


 




Profit for the period


-


-


-


-


-


216


216




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Total comprehensive income for the period


-


-


-


-


-


216


216




 


 


 


 


 


 


 


 




Balance 30 June 2018


118


793


4


214


(85)


2,668


3,712




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 
 
 




 


Share
capital


Share
premium
account


Capital redemption
reserve


Share options
reserve


Translation
reserves


Retained earnings


TOTAL
EQUITY




 


£'000


£'000


£'000


£'000


£'000


£'000


£'000




Audited


 


 


 


 


 


 


 




Balance at 1 January 2018


117


740


4


219


(85)


2,342


3,337




 


 


 


 


 


 


 


 




Issue of share capital


1


54


-


-


-


-


55




Share options issued in share based payments


-


-


-


218


-


-


218




Exercise of share options


-


11


-


(11)


-


-


-




Cancellation of time expired share options


-


-


-


(110)


-


110


-




 


 


 


 


 


 


 


 




Transactions with owners


1


65


-


97


-


110


273




 


 


 


 


 


 


 


 




Profit for the year


-


-


-


-


-


143


143




 


 


 


 


 


 


 


 




Total comprehensive income for the year


-


-


-


-


-


143


143




 


 


 


 


 


 


 


 




Balance 31 December 2018


118


805


4


316


(85)


2,595


3,753




 
 
 
 




CONSOLIDATED STATEMENT


 


 


 




OF CASH FLOWS


 


 


 




For the period ended 30 June 2019


 


 


 




 


 


 


 




 


 


 


 




 


6 Months


6 Months


Year




 


Ended


Ended


ended




 


30 June


30 June


31 December




 


2019


2018


2018




 


Unaudited


Unaudited


Audited




 


£'000


£'000


£'000




 


 


 


 




(Loss)/profit from operations


(495)


206


63




Adjustment for:


 


 


 




Amortisation and impairment of intangible assets


148


145


290




Depreciation of property, plant and equipment


29


29


57




Share based payments


71


105


218




Foreign exchange


5


8


16




Operating cash flows before movement of working capital


(242)


493


644




Decrease/(increase) in inventories


407


(63)


(158)




(Increase)/decrease in receivables


(414)


(220)


521




(Decrease)/increase in payables


(512)


(8)


(277)




Cash utilised in operations


(761)


202


730




Corporation tax (paid)/received


59


-


-




Net cash inflow/(outflow) from operating activities


(702)


202


730




 


 


 


 




Cash flows from investing activities


 


 


 




Interest received


3


2


4




Investment in intangible assets


(161)


(122)


(293)




Purchase of property, plant and equipment


(23)


(68)


(120)




Net cash used in investing activities


(181)


(188)


(409)




 


 


 


 




Net (decrease)/increase in cash and cash equivalents


(883)


14


321




 


 


 


 




Cash and cash equivalents at beginning of period


2,614


2,293


2,293




Cash and cash equivalents at end of period


1,731


2,307


2,614




 
 
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 30 June 2019
 
 
1. CORPORATE INFORMATION
The financial information for the year ended 31 December 2018 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2018 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Section 498 of the Companies Act 2006. The interim results are unaudited. Biome Technologies plc is a public limited company incorporated and domiciled in England & Wales. The Company's ordinary shares are publicly traded on the AIM market of the London Stock Exchange.
 
2. BASIS OF PREPARATION
These interim consolidated financial statements (the interim financial statements) are for the six months ended 30 June 2019. They have been prepared in accordance with IFRSs as adopted by the European Union and IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2018.
 
These interim financial statements have been prepared under the historical cost convention.
 
These interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2018 except for the adoption of IFRS 16 as described below.
 
On 1 January 2019, the Group adopted IFRS 16 'Leases' which supersedes IAS 17 'Leases'. The Group has adopted the 'Modified retrospective application' which means there is no restatement of the comparative period but there is an opening adjustment to retained earnings as at 1 January 2019 to account for any lease costs taken in 2018 that need to be reclassified to 2019. Following a review of all leases, it has been determined that no opening adjustments with respect to the adoption of IFRS 16 are required. This is due to the main lease for the property having less than one year to expiry.
 
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of the interim financial statements.
 
3. BASIS OF CONSOLIDATION
The Group interim financial statements consolidate the results of the Company and all of its subsidiary undertakings drawn up to 30 June 2019. At 30 June 2019, the subsidiary undertakings were Biome Bioplastics Limited, Stanelco RF Technologies Limited, Aquasol Limited and InGel Technologies Limited. 
 
4. GOING CONCERN
The directors have reviewed forecasts and budgets for the coming 12 months, which have been drawn up with appropriate regard for the current macroeconomic environment and the particular circumstances in which the Group operates. As a result of this process, the directors are satisfied that the Group has sufficient resources to continue in operational existence for at least one year from the date of approval of the interim report.
 
 
5a. SEGMENTAL INFORMATION FOR 6 MONTHS ENDED 30 JUNE 2019
 




 


Bioplastics


 


RF
Technologies


 


Central
Costs


 


Total




 


6 Months


 


6 Months


 


6 Months


 


6 Months




 


Ended


 


ended


 


ended


 


Ended




 


30 June


 


30 June


 


30 June


 


30 June




 


2019


 


2019


 


2019


 


2019




 


£'000


 


£'000


 


£'000


 


£'000




Unaudited


 


 


 


 


 


 


 




Revenue from external customers


1,442


 


2,163


 


-


 


3,605




 


 


 


 


 


 


 


 




(LOSS)/PROFIT FROM OPERATIONS


(344)


 


584


 


(735)


 


(495)




Investment revenue


 


 


 


 


 


 


3




Foreign exchange gain


 


 


 


 


 


 


8




 


 


 


 


 


 


 


 




LOSS ATTRIBUTABLE TO EQUITY SHAREHOLDERS


 


 


 


 


 


 


(483)




 


 


 


 


 


 


 


 




TOTAL ASSETS


2,088


 


717


 


1,816


 


4,621




 
 
5b. SEGMENTAL INFORMATION FOR 6 MONTHS ENDED 30 JUNE 2018
 




 


Bioplastics


 


RF
Technologies


 


Central
Costs


 


Total




 


6 Months


 


6 Months


 


6 Months


 


6 Months




 


ended


 


Ended


 


ended


 


Ended




 


30 June


 


30 June


 


30 June


 


30 June




 


2018


 


2018


 


2018


 


2018




 


£'000


 


£'000


 


£'000


 


£'000




Unaudited


 


 


 


 


 


 


 




Revenue from external customers


932


 


3,459


 


-


 


4,391




 


 


 


 


 


 


 


 




(LOSS)/PROFIT FROM  OPERATIONS


(345)


 


1,279


 


(728)


 


206




Investment revenue


 


 


 


 


 


 


2




Foreign exchange gain


 


 


 


 


 


 


8




 


 


 


 


 


 


 


 




PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS


 


 


 


 


 


 


216




 


 


 


 


 


 


 


 




TOTAL ASSETS


1,940


 


1,931


 


1,904


 


5,775




 
 
5c. SEGMENTAL INFORMATION FOR YEAR ENDED 31 DECEMBER 2018
 




 


Bioplastics


 


RF
Technologies


 


Central
Costs


 


Total




 


Year


 


Year


 


Year


 


Year




 


ended


 


ended


 


ended


 


ended




 


31
 December


 


31
 December


 


31 December


 


31
December




 


2018


 


2018


 


2018


 


2018




 


£'000


 


£'000


 


£'000


 


£'000




Audited


 


 


 


 


 


 


 




Revenue from external customers


1,890


 


6,960


 


-


 


8,850




 


 


 


 


 


 


 


 




(LOSS)/PROFIT FROM  OPERATIONS


(792)


 


2,601


 


(1,746)


 


63




 


 


 


 


 


 


 


 




Investment revenue


 


 


 


 


 


 


4




Foreign exchange gain


 


 


 


 


 


 


17




 


 


 


 


 


 


 


 




PROFIT BEFORE TAXATION FROM OPERATIONS


 


 


 


 


 


 


84




 


 


 


 


 


 


 


 




Taxation


 


 


 


 


 


 


59




 


 


 


 


 


 


 


 




PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS


 


 


 


 


 


 


143




 


 


 


 


 


 


 


 




TOTAL ASSETS


1,846


 


945


 


2,754


 


5,545




 
 
6. TAXATION
The Group's policy is to recognise tax credits resulting from tax research and development claims on a cash received basis. The claim in respect of the year ended 31 December 2018 has not yet been settled and there is therefore no tax credit recognised in the period under review.
 
7. EARNINGS PER SHARE
The calculation of basic earnings per share is based on the loss attributable to the equity holders of the parent for the six months of £484,000 (2018: profit of £216,000) and a weighted average of 2,365,188 (2018: 2,352,465) ordinary shares in issue. The calculation uses the same weighted average number of shares under the basic and diluted basis in the current period due to a loss being made.
 
Diluted earnings per share for the six months ended 30 June 2018 were based on a weighted average of 2,485,111 ordinary shares (31 December 2018: 2,782,194 ordinary shares) which accounts for all share options which are in the money, regardless of whether they have yet vested.
 
8. OTHER INTANGIBLE ASSETS
Other intangible assets increased in the period as a result of the capitalisation of product development costs of £161,000 exceeding the amortisation charge of £148,000.
 
9. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment decreased in the reporting period as a result of the depreciation charge for the period of £29,000 exceeding the purchase of property, plant and equipment of £23,000.
 
10. INVENTORIES
The decrease in inventories during the reporting period reflects the decrease in equipment orders under construction within the Stanelco RF division.
 
11. TRADE AND OTHER RECEIVABLES
Trade and other receivables have increased during in the reporting period mainly due to the increases in trade debtors within both the Biome Bioplastics and Stanelco RF divisions and reflects the timing of invoicing and shipments around the period end.
  
12. TRADE AND OTHER PAYABLES
The decrease in trade and other payables during the reporting period primarily reflects the decrease in activity levels, and equipment sale deposits, within the Stanelco RF division.
 
13. RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the business activities of the Group are detailed in the Strategic Report which can be found on pages 6-12 of the Annual Report and Financial Statements for the year ended 31 December 2018 ("the Annual Report"). A copy of the Annual Report and Financial Statements is available on the Company's website at www.biometechnologiesplc.com  
 
The directors consider that the risks affecting the business remain the same as in the Annual Report. In summary, these risks include:
·      changes in the regulatory environments in which the Group operates
·      fluctuations in exchange rates
·      volatility in raw material prices and supply
·      breach of intellectual property rights
·      competitors developing more attractive products
·      failure to commercialise products
·      reliance on a small number of customers for certain products
·      financial risks including exchange rate risk, liquidity risk, interest rate risk and credit risk.
 
Further details of how these risks impact the business and how the directors attempt to mitigate
the risks can be found in the Annual Report.
 
Copies of this interim report will be shortly available on the Company's website at www.biometechnologiesplc.com.


 
 
INDEPENDENT REVIEW REPORT FOR BIOME TECHNOLOGIES PLC
 
Introduction
We have reviewed the condensed set of financial statements in the half-yearly financial report of Biome Technologies Plc (the 'company') for the six months ended 30 June 2019 which comprises the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and the related notes. We have read the other information contained in the half yearly financial report which comprises only the Chairman's Statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
 
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. As disclosed in note 2, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
 
Our responsibility
Our responsibility is to express a conclusion to the company on the condensed set of financial statements in the half-yearly financial report based on our review.
 
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
 
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2019 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
 
Use of our report
This report is made solely to the company as a body, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state therein in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company as a body, for our review work, for this report, or for the conclusion we have formed.
 
 
   
GRANT THORNTON UK LLP
STATUTORY AUDITOR
CHARTERED ACCOUNTANTS
 
SOUTHAMPTON
11 September 2019
 
 




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