REG - Eden Research plc - Final Results <Origin Href="QuoteRef">EDENE.L</Origin> - Part 3

Eden ResearchAnnouncement

22/05/2017 07:06

- Part 3: For the preceding part double click  ID:nRSV7449Fb 

which estimates that five and ten percentage point
increases in the value of sterling against all other currencies would have had
minimal impact on results before tax. 
 
On the other hand, the Company's policy is to accept a degree of interest rate
risk as long as the effects of various changes in rates remain within certain
prescribed ranges. On the basis of the Company's analysis, the only financial
liabilities held by the Company are loans which are subject to a fixed rate of
interest. As such it is considered that any increases in interest rates would
not have had an impact on the Company's loss before tax for the year. 
 
Capital risk management 
 
The primary objective of the Company's capital management is to ensure that it
maintains healthy capital ratios in order to support its business and maximise
shareholder value. 
 
The Company seeks to enhance shareholder value by capturing business
opportunities as they develop. To achieve this goal, the Company maintains
sufficient capital to support its business. 
 
The Company manages its capital structure and makes adjustments to it in light
of changes in economic conditions. 
 
The Company looks to maintain a reasonable debt position by repaying debt or
issuing equity, as and when it is deemed to be required. 
 
No changes were made in the objectives, policies or processes for managing
capital during the years ended 31 December 2016 and 31 December 2015. 
 
The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company's policy is to keep the gearing
ratio below 10% (2015: below 10%).The Company includes within net debt,
interest bearing loans and borrowings, a loan from a venture partner, trade
and other payables, less cash and cash equivalents. 
 
                                  2016         2015(as restated)  
                                  £            £                  
 Borrowings                       -            -                  
 Less: Cash and cash equivalents  (1,532,341)  (148,360)          
                                                                  
 Net debt                         (1,532,341)  (148,360)          
 Total equity                     6,763,155    5,926,899          
                                                                  
 Total capital                    5,230,814    5,778,539          
                                                                  
 Gearing ratio                    0%           0%                 
 
 
27. DEFINED CONTRIBUTION PLANS 
 
The Company operates a defined contribution pension plan. 
 
The total expense relating to these plans in the current year was £4,218
(2015: £nil). 
 
28. POST BALANCE SHEET EVENTS 
 
In January 2017, Eden entered into a new operating lease, details of which are
below. 
 
Minimum lease payments under non-cancellable operating leases fall due as
follows: 
 
                                       
                             £         
                                       
 Between one and five years  35,000    
                             35,000    
 
 
This information is provided by RNS
The company news service from the London Stock Exchange