REG - Ergomed plc - Unaudited Preliminary Results for 2016 <Origin Href="QuoteRef">ERGO.L</Origin> - Part 1

ErgomedAnnouncement

28/03/2017 07:11

RNS Number : 6771A
Ergomed plc
28 March 2017
PRESS RELEASE
EMBARGOED FOR RELEASE
7.00am 28 MARCH 2017
Unaudited Preliminary Results for the year ended 31 December 2016
Top line revenue growth of 30%
Gross profit up 43%
New business won in 2016 increased 50% to 42 million
Contracted backlog at 1 January 2017 of 70 million
Multiple corporate milestones achieved in 2016
Post year-end positive Phase II results announced from insomnia study
London, UK - 28 March 2017: Ergomed plc, ('Ergomed', AIM: ERGO) a profitable UK-based group dedicated to the provision of specialised services to the pharmaceutical industry and the development of new drugs, today announces its unaudited Preliminary Results for the year ended 31 December 2016.
Commenting on the results, Miroslav Reljanovic MD, Chief Executive Officer of Ergomed plc, said:
"I am proud of our achievements in 2016, a transformational year. We met our financial targets, delivering increased revenue and gross profit and at the same time achieved a number of important corporate milestones. The Board remains focused on delivering significant shareholder value by the continuing development of Ergomed's exciting hybrid business model.
The acquisitions1 of O+P and GASD strengthened our CRO service offering whilst the acquisition of PharmInvent consolidated our position as a leading international, fast growing provider of pharmacovigilance services. Positive Phase II results from our co-development partnership with Ferrer and the acquisition of Haemostatix underline the potential of our drug development pipeline and its potential to deliver very significant shareholder value in the medium term. Based on our 70 million contracted backlog and the opportunities in front of us I believe 2017 will be another exciting year for Ergomed."
Financial Highlights: Performance ahead of market expectations
 Revenues up 30% to 39.2 million (2015: 30.2 million) 
 Gross profit up 43% to 12.0 million (2015: 8.4 million) 
 EBITDA (adjusted)2 was 3.0 million (2015: 3.4 million) and EBITDA was 1.6 million (2015: 2.8 million), reducing principally due to inclusion of Haemostatix R&D (2016: 1.0 million, 2015: nil) following its acquisition(note 12)
 EPS (adjusted) was 7.1p (2015: 9.2p) and EPS was 1.3p (2015: 5.2p), again due to the inclusion of Haemostatix R&D following its acquisition in May 2016 (note 13)
 Cash and cash equivalents of 4.4 million as at 31 December 2016 (2015: 4.0 million) with zero debt (2015: nil)
 New contracts won in 2016 up 50% with an initial value of 42 million (2015: 28 million)
 Strong backlog of 70 million contracted revenue as of 1 January 2017 (1 January 2016: 59 million)
Notes:
1. The Company made four acquisitions during the year; Haemostatix Limited ("Haemostatix") in May 2016, Dr Oestreich+ Partner GmbH ("O+P") and Gesellschaft fr angewandte Statistik + Datenanalyse mbH ("GASD") acquired together in June 2016 and European PharmInvent Services s.r.o. ("PharmInvent") in November 2016.
2. Adjustments are made to EBITDA for share-based payment charge, deferred consideration for acquisition, write-back of deferred consideration for acquisition, acquisition costs and exceptional items.
3. Adjustments are made to EPS for amortisation of acquired fair valued intangible assets, share-based payment charge, deferred consideration for acquisition, write-back of deferred consideration for acquisition, acquisition costs and exceptional items.
Operational Highlights: Significant corporate milestones achieved
 An institutional placing raising gross proceeds of 9.2 million (May 2016)
 Acquisition of Haemostatix, a company focused on developing innovative products for surgical bleeding based in Nottingham, UK (May 2016) (see note 6)
 Acquisitions of O+P and GASD, respectively CRO and biostatistics companies, both based in Germany (June 2016) (see note 7)
 Acquisition of PharmInvent, a leading pharmacovigilance and regulatory services business based in Czech Republic (November 2016) (see note 8)
 An agreement with Asarina AB for the co-development of sepranolone for the treatment of PMDD (November 2016)
Post-year-end highlights
 Ergomed's co-development partner, Ferrer, announced positive Phase II results of lorediplon for insomnia (February 2017)
 Ergomed initiated a Phase IIb study of PeproStat, our wholly-owned development product and the first to come from the Haemostatix pipeline (March 2017)
Enquiries:
Ergomed plc
Tel: +44 (0) 1483 503205
Miroslav Reljanovic (Chief Executive Officer)
Stephen Stamp (Chief Financial Officer)
Numis Securities Limited
Tel: +44 (0) 20 7260 1000
Michael Meade / Freddie Barnfield (Nominated Adviser)
James Black (Joint Broker)
Stifel Nicolaus Europe Limited
Tel: +44 (0) 20 7710 7600
Jonathan Senior / Ben Maddison (Joint Broker)
FTI Consulting - for UK enquiries
Tel: +44 (0) 20 3727 1000
Simon Conway / Mo Noonan / Natalie Garland-Collins
MC-Services - for Continental European enquiries
Tel: +49 211 5292 5222
Anne Hennecke
About Ergomed
Ergomed plc is a profitable UK-based business providing drug development services to the pharmaceutical industry and has a growing portfolio of co-development partnerships. It operates in over 50 countries. 
Ergomed provides clinical development, trial management and pharmacovigilance services to over 100 clients ranging from top 10 pharmaceutical companies to small and mid-sized drug development companies. Ergomed successfully manages clinical development from Phase I through to late phase programmes.
Ergomed has a wide therapeutic focus, with a particular expertise in oncology, neurology and immunology and the development of orphan drugs. Ergomed believes its approach to clinical trials is differentiated from that of other providers by its innovative Study Site Management model and the use of Study Physician Teams, resulting in a close relationship between Ergomed and the physicians involved in clinical trials.
As well as providing high quality clinical development services, Ergomed is building a portfolio of co-development partnerships with pharma and biotech companies which share the risks and rewards of drug development. Ergomed leverages its expertise and services in return for carried interest in the drugs under development. Lastly, Ergomed acquired a pipeline of proprietary development products for the treatment of surgical bleeding. For further information, visit: http://ergomedplc.com.
Forward Looking Statements
Certain statements contained within the announcement are forward looking statements and are based on current expectations, estimates and projections about the potential returns of Ergomed plc ("Ergomed") and industry and markets in which Ergomed operates, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties, outcomes of negotiations and due diligence and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: the general economic climate, competition, interest rate levels, loss of key personnel, the result of legal and commercial due diligence, the availability of financing on acceptable terms and changes in the legal or regulatory environment.
These forward-looking statements speak only as of the date of this announcement. Ergomed expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Ergomed's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.
Chief Executive Officer's Review
The Board of Ergomed is delighted to report on a transformational year. The Company exceeded its targets in terms of revenue and adjusted EBITDA, raised 9.2 million in an institutional placing, completed four acquisitions, of which O+P and GASD were acquired at the same time, and added another partnership to the co-development portfolio. 
Services - another year of good growth
New business won in 2016 of 42 million, up 50% on 2015, drove overall Services revenue growth of 30%. Services growth was powered by Drug Safety & Medical Information revenues which grew at 63%, complemented by 18% growth from Clinical Research Services. Excluding acquisitions, overall revenue growth was 27%.
In June 2016, we announced the acquisitions of O+P and GASD based in Cologne and Neuss, Germany respectively. O+P is a full service contract research organisation that has also developed a proprietary FDA validated Electronic Data Capture (EDC) system called OPVERDI, which can be configured for individual trials on a multilingual basis. GASD offers data management, statistical analysis, biometric reporting and statistical consulting services for the pharmaceutical industry. In addition to a scalable EDC system and world-class biostatistics expertise, the acquisitions of O+P and GASD have brought greater access to the German speaking markets and have already resulted in several contract wins.
In November 2016, we announced the acquisition of PharmInvent based in Prague, Czech Republic. PharmInvent is led by an experienced, ex-regulatory agency team that offers drug safety and regulatory consultancy expertise. They also have an extensive network of international pharmacovigilance experts that provide advice and support on local product safety and offer integrated global support for pharma and generic companies' products. Combining PharmInvent's proven expertise with PrimeVigilance creates one of the largest international specialist service providers in the highly regulated drug safety sector. The enlarged business has a broad international client list offering significant opportunities to cross sell, as well as an expanded range of services to attract new customers.
Global demand for quality outsourced drug development and drug safety services remains strong and Ergomed continues to benefit from this trend. Ergomed ended 2016 with a total backlog of contracted work with a value to be invoiced in future years of approximately 70 million (2015: 59 million). 
Products - Haemostatix and one more co-development partnership added
Ergomed is also in the distinct position of offering co-development partnerships and is committed to building its portfolio of co-development assets and delivering clinical data thereby creating significant potential shareholder value in the next few years.
As part of our co-development business development activities, we identified what we believe to be a particularly promising opportunity in Haemostatix. With solid pre-clinical and clinical evidence and a low cost yet fast development programme, we believe Haemostatix offers a rare opportunity to capture the full value of the product potential with reasonable risk.We acquired Haemostatix in May 2016, at the same time raising 9.2 million via an institutional placing. Since then, we have been preparing PeproStat, a liquid haemostat for a Phase IIb study and announced the start of the trial in March 2017. We expect to complete recruitment around the end of the year with topline results available in the first quarter of 2018. At the same time, ReadyFlow, a flowable gel haemostat, is in formulation development and is expected to be Phase I ready by the first quarter of 2018. With combined annual peak sales potential of up to $500 million, the Board believes the Haemostatix products have the capability to deliver very significant value to Ergomed shareholders not otherwise achievable in traditional co-development deals.
In November 2016 we signed a co-development agreement with Asarina AB for the Phase IIb clinical development of sepranolone as a targeted treatment for premenstrual dysphoric disorder (PMDD). The co-development deal with Asarina is Ergomed's second with a Karolinska Development spin-out company and brings the portfolio of co-development programmes to six in total. The status of Ergomed's current co-development partnerships is summarised as follows:
Company
Study Overview
Update
Ferrer
Private
www.ferrer.com
 Phase IIa study in insomnia
 Lorediplon
 145 patients
 11 clinical sites in 3 countries
We were very pleased to announce that the primary and many of the secondary endpoints for the Phase II study were met, indicating that lorediplon was both safe and effective in insomnia patients. Ferrer is currently exploring the full data set and will initiate partnering activities. Whilst the product already has an Asian commercial partner, Ferrer will look to bring on board a commercial partner for US marketing and to support the ongoing clinical development. If Ferrer receive a payment at completion of this licensing deal, Ergomed will receive a share, along with a share of all future revenues received by Ferrer for the commercialisation of the product. 
Aeterna Zentaris
(NASDAQ: AEZS;
TSX: AEZ)
www.aezsinc.com
 Phase III Zoptrex pivotal study in endometrial cancer 
 Zoptarelin doxorubicin
 500 patients
 115 clinical sites in 22 countries
In January 2017 Aeterna Zentaris announced completion of the study, with the required number of patient outcomes. We are currently in the process of collecting the final data points and the results of the study are expected to be announced in April 2017. If successful, the next step for this product would be registration.
Aeterna Zentaris has entered into five marketing partnerships with Zoptrex for various territories in Asia, Israel, Australia and New Zealand. Ergomed has received a percentage of the upfront payments and will receive its share of further receipts according to our revenue share agreement.
CEL-SCI 
(NYSE MKT: CVM)
www.cel-sci.com
 Phase III study in head and neck cancer
 Multikine
 880 patients
 105 clinical sites in 24 countries
Having reached the recruitment target but observed a lower overall death rate, CEL-SCI decided to submit a protocol amendment to include additional patients into the study. During the review of the amendment, the FDA put the study on a partial clinical hold requesting additional information. CEL-SCI is in a continuing dialogue with the FDA to try to resolve the questions posed and supply the FDA with supplemental information. Following a Type A meeting with the FDA, on 8 February 2017, CEL-SCI announced that they were continuing with efforts to have the clinical hold released.
CEL-SCI 
(NYSE MKT: CVM)
www.cel-sci.com
 Phase I peri-anal warts in HIV/HPV
 Multikine
 15 patients
 1 clinical site
With the ongoing discussions with the FDA regarding the head and neck cancer trail, CEL-SCI has temporarily suspended patient recruitment in the peri-anal warts study. All other activities, including pre-screening activities to identify potential subjects are ongoing.
Modus Therapeutics
Part of Karolinska Development AB 
(STO: KDEV)
www.modustx.com
 Phase II in vaso-occlusive crisis in patients with sickle cell disease
 Orphan drug indication
 Sevuparin
 Up to 154 patients
 11 clinical sites in 5 countries
The first interim analysis was completed in November 2016, demonstrating a good safety profile and the study enrolment was extended to adolescents. With this permission, Modus Therapeutics decided to adjust the statistical assumptions and include 150 patients (up from 77) to give the study the strongest chance to reach a significant readout. It is planned that this recruitment target will be reached by first quarter 2018 with study results released thereafter.
Asarina
Part of Karolinska Development AB 
(STO: KDEV)
www.asarinapharma
.com
 Phase IIb study in premenstrual dysphoric disorder (PMDD) - protocol is under development with
 235 patients planned from 
 14 sites in 5 countries
PMDD is an extremely severe form of pre-menstrual syndrome where women are, on a regular basis, unable to work or live a normal life for several days each cycle.
We are currently preparing the study protocol and expect the first patients to be recruited in the second half of 2017 with the study completing in 2018.
Outlook
The current backlog of services contracts means Ergomed is well positioned to deliver its revenue targets for 2017, although the market for clinical research out-sourcing remains highly competitive. Ergomed continues to seek focused acquisition opportunities to expand the services business. This expansion of our profitable service businesses remains the core component of Ergomed's strategy and the Board is prioritising this initiative.
We are on track to progress the Haemostatix pipeline in 2017 with the start of the Phase IIb clinical trial of PeproStat and the pre-clinical development of ReadyFlow. Our co-development business continues to gain traction as we seek more partnership opportunities to extend our diverse pipeline of development projects. Ergomed also anticipates further clinical updates from its existing partnerships with the next inflexion point being pivotal Phase III data on Zoptrex from our co-development partner Aeterna Zentaris in April 2017.
Miroslav Reljanovic M.D. - Chief Executive Officer
Financial Review
Key Performance Indicators
The Directors consider the principal financial performance indicators of the Group to be:
m
2016
2015
Revenue
39.2
30.2
Gross profit
Research and development expenditure
12.0
1.0
8.4
-
EBITDA (adjusted) (note 12)
3.0
3.4
Cash and cash equivalents
4.4
4.0
The Directors consider the principal non-financial performance indicators of the Group to be:
 The delivery of high quality services that continue to meet the highest industry standards as evidenced by internal and external quality audits 
 The development or acquisition of new and/or the expansion of existing service offerings
 The expansion of the co-development portfolio with the addition of two new partnerships per year
Condensed Consolidated Statement of Comprehensive Income
Revenue for the year ended 31 December 2016 was 39.2 million (2015: 30.2 million), an increase of 30%, driven by 63% growth in drug safety and medical information, complemented by 18% growth from clinical research services. Excluding the impact of acquisitions, revenues grew at 27%.
Gross profit was 12.0 million and gross margin was 31% (2015: gross profit 8.4 million and gross profit margin 28%). Ergomed's gross margin fluctuates compared to a traditional clinical research organisation (CRO) service provider as Ergomed operates a hybrid model working with customers on a normal full priced basis as well as working with co-development partners where Ergomed is carrying out clinical studies at reduced fees in return for carried interests in the partnered product. The mix of full service work to co-development work in any given period therefore impacts the gross profit and gross margin in that period.
Administration expenses were 10.5 million (2015: 6.4 million), an increase of 4.1 million. Included in administrative expenses are increases in amortisation of acquired fair valued intangible assets of 0.2 million, share-based payment charge of 0.1 million, deferred consideration for acquisition of 0.7 million, acquisition costs of 0.3 million, exceptional items of 0.1 million offset by a write-back of deferred consideration for acquisition of 0.5 million. The increase in other administrative expenses of 3.1 million was driven by an additional 1.2 million of overhead in acquisitions, 0.7 million investments in improved corporate infrastructure, 0.3 million additional recruitment costs, 0.2 million increase in investor relations and public relations activities, 0.1 million increase in depreciation and 0.9 million provision for doubtful debts offset by foreign exchange gains of 0.4 million.
Research and development costs were 1.0 million (2015: nil) relating to Haemostatix and included chemistry, manufacturing and controls (CMC) costs in preparation for a Phase IIb clinical trial of PeproStat and pre-clinical formulation development costs for ReadyFlow.
Deferred consideration for achieving 2016 financial targets of 0.7 million in respect of PharmInvent has been charged to profit and loss in the year because it is tied to the continued employment of the vendors.
The Company incurred acquisition costs totalling 0.6 million (2015: 0.3 million) in the year, primarily in respect of the Haemostatix, O+P and GASD and PharmInvent acquisitions. In addition, 0.2 million in respect of start-up costs for PrimeVigilance's US office was recognised as an exceptional item.
Included in finance charges is 0.3 million relating to the unwinding of the discount applied to contingent consideration for Haemostatix.
The Group's tax charge was reduced by an R&D tax credit of 0.2 million in the year.
Condensed Consolidated Balance Sheet
As at 31 December 2016 total assets less total liabilities amounted to 34.6 million (2015: 16.9 million) including cash and cash equivalents of 4.4 million (2015: 4.0 million).
The principal movements in the Condensed Consolidated Balance Sheet during the year were:
 Acquisitions of Haemostatix, O+P and GASD and PharmInvent in May 2016, June 2016 and November 2016 respectively and the associated goodwill of 5.5 million and intangible assets of 19.3 million.
 Increase in trade and other receivables by 5.4 million reflecting higher trading levels and a 0.5 million increase in clinical trial inventory.
 An increase in deferred consideration, after unwinding of discount, of 8.2 million in respect of Haemostatix. Deferred consideration in respect of PharmInvent is recognised as incurred in the profit and loss account since it is tied to the continued employment by the vendors of that business.
 An increase in deferred tax liability of 2.5 million, principally related to the acquisitions of Haemostatix, O+P and GASD and PharmInvent.
 An increase in share premium, arising from the Institutional Placing, net of costs.
 An increase in merger reserve, arising from the acquisitions of Haemostatix, O+P and GASD and PharmInvent.
Condensed Consolidated Cash Flow Statement
At present, the Group does not have any borrowings or long term debt apart from a few immaterial fixed asset finance leases.
Cash inflows from operating activities before changes in working capital in the year were 2.7 million (2015: 2.7 million). Changes in working capital included a 3.7 million increase in trade and other receivables, a 0.4 million increase in inventory and a 0.1 million decrease in trade and other payables.
Cash outflows from investing activities were 5.8 million including the acquisitions of Haemostatix, O+P and GASD and PharmInvent together with deferred consideration of 0.1 million for Sound Opinion, 0.4 million for the acquisition of tangible assets and 0.7 million for the acquisition of intangible assets.
The Group also paid taxation of 0.9 million in 2016 (2015: 0.6 million).
Financial Outlook
Ergomed's Board has set the objective of remaining profitable and cash generative. This is being achieved by running profitable services businesses alongside a managed portfolio of drug co-development partnerships where Ergomed contributes services at reduced prices in return for a carried interest in the potential commercial returns that may be generated in the future.
Ergomed currently had a strong contracted backlog of about 70 million at 1 January 2017. The overall trading environment for full service business is generally strong although still very competitive. Ergomed's Board believes it can continue to generate further growth and profits from both the Clinical Research and PrimeVigilance / PharmInvent businesses in 2017 and beyond whilst at the same time expanding the co-development portfolio on a selected basis.
Going concern
As at 31 December 2016 the Group had 4.4 million in cash or cash equivalents and a strong backlog of signed contracts. The Directors therefore expect Ergomed's services business to remain both profitable and cash generative. Taking into account existing cash resources and, after due consideration of cash flow forecasts, the Directors are of the view that Ergomed will continue to have access to adequate resources to allow the Group to continue trading on normal terms of business for no less than 12 months from the date of signing of the financial statements and have therefore prepared the financial statements on a going concern basis.
UNAUDITED PRELIMINARY RESULTS 
Condensed Consolidated Income Statement
Notes
2016
000s
2015
000s
REVENUE
2
39,233
30,178
Cost of sales
(27,239)
(21,808)
Gross profit
11,994
8,370
Administrative expenses
(10,483)
(6,379)
Administrative expenses comprises:
Other administrative expenses
(8,323)
(5,186)
Amortisation of acquired fair valued intangible assets
(771)
(596)
Share-based payment charge
(398)
(288)
Deferred consideration for acquisition
8
(690)
-
Write-back of deferred consideration for acquisition
460
-
Acquisition costs
9
(584)
(272)
Exceptional items
10
(177)
(37)
Research and development
(1,040)
-
Other operating income
127
81
OPERATING PROFIT
598
2,072
Investment revenues
2
1
Finance costs
3
(274)
(1)
PROFIT BEFORE TAXATION
326
2,072
Taxation
4
153
(520)
PROFIT FOR THE YEAR
479
1,552
EARNINGS PER SHARE
Basic 
5
1.3p 
5.4p 
Diluted 
5
1.3p
5.2p
All activities in the current and prior period relate to continuing operations.
Condensed Consolidated Statement of Comprehensive Income
2016
000s
2015
000s
Profit for the year
479
1,552
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations
680
(244)
Other comprehensive income for the period net of tax
680
(244)
Total comprehensive income for the period
1,159
1,308
Condensed Consolidated Balance Sheet
Notes
2016
000s
2015
000s
Non-current assets
Goodwill
12,285
7,488
Other intangible assets
19,842
2,819
Property, plant and equipment
717
335
Investments
271
183 
Deferred tax asset
1,448
365 
34,563
11,190
Current assets
Trade and other receivables
14,958
9,528
Clinical trial inventory
450
-
Cash and cash equivalents
4,424
3,974
19,832
13,502
Total assets
54,395
24,692
Current liabilities
Borrowings
(3)
(5)
Trade and other payables
(7,077)
(5,955)
Deferred revenue
(1,393)
(795)
Current tax liability
(119)
(478)
Total current liabilities
(8,592)
(7,233)
Net current assets
11,240
6,269
Non-current liabilities
Borrowings
(5)
(7)
Deferred consideration
(7,772)
-
Deferred tax liability
(3,418)
(516)
Total liabilities
(19,787)
(7,756)
Net assets
34,608
16,936
Equity
Share capital
406
288
Share premium account1
14
17,957
9,361
Merger reserve1
14
10,264
2,981
Share-based payment reserve
1,048
650
Translation reserve
143
(537)
Retained earnings
4,790
4,193
Total equity
34,608
16,936
1. Restated per note 14.
Consolidated Statement of Changes in Equity
Share
capital
000s
Share
Premium account
000s
Merger reserve
000s
Share-based payment reserve
000s
Translation
reserve
000s
Retained
earnings
000s
Total
000s
Balance at 31 December 2014 
288
12,342
-
362
(293)
2,640
15,339
Correction of accounting treatment (note 14)
-
(2,981)
2,981
-
-
-
-
As re-stated
288
9,361
2,981
362
(293)
2,640
15,339
Profit for the year
-
-
-
-
-
1,552
1,552
Other comprehensive income for the year
-
-
-
-
(244)
-
(244)
Total comprehensive income for the year
-
-
-
-
(244)
1,552
1,308
Share-based payment charge for the year
-
-
-
288
-
-
288
Deferred tax credit taken directly to equity
-
-
-
-
-
1
1
Balance at 31 December 2015
288
9,361
2,981
650
(537)
4,193
16,936
Profit for the year
-
-
-
-
479
479
Other comprehensive income for the year
-
-
-
-
680
-
680
Total comprehensive income for the year
-
-
-
-
680
479
1,159
Share-issue for cash during the year for cash (net of expenses)
66
8,596
-
-
-
-
8,662
Share-issues during the year for non-cash consideration
51
-
7,144
-
-
-
7,195
Contingent share-issues for non-cash consideration
1
-
139
-
-
-
140
Share-based payment charge for the year
-
-
-
398
-
-
398
Deferred tax credit taken directly to equity
-
-
-
-
-
118
118
Balance at 31 December 2016
406
17,957
10,264
1,048
143
4,790
34,608
Condensed Consolidated Cash Flow Statement
2016
000s
2015
000s
Cash flows from operating activities
Profit before taxation
326
2,072
Adjustment for:
Amortisation and depreciation
1,027
713
(Gain)/loss on disposal of fixed assets
(2)
4
Share-based payment charge
398
288
Acquisition of shares for non-cash consideration
(54)
(142)
Exchange adjustments
418
(251)
Acquisition costs and deferred consideration
726
54
Write-back of deferred consideration
(414)
-
Investment revenues
(2)
(1)
Finance costs
274
1
Operating cash flow before changes in working capital and provisions
2,697
2,738
Increase in trade and other receivables
(3,667)
(2,898)
Increase in inventory
(405)
-
(Decrease)/increase in trade and other payables
(58)
1,012
(Cash utlised by)/generated from operations
(1,433)
852
Taxation paid
(941)
(588)
Net cash (outflow)/inflow from operating activities
(2,374)
264
Investing activities
Investment revenues received
2
1
Acquisition of intangible assets
(705)
(285)
Acquisition of property, plant and equipment
(404)
(270)
Investment in joint venture and other investments
-
(1)
Acquisition of subsidiary, net of cash acquired
(4,755)
(312)
Receipts from sale of property, plant and equipment
31
2
Net cash outflow from investing activities
(5,831)
(865)
Financing activities
Issue of new shares
9,185
-
Expenses of fundraising
(523)
-
Finance costs paid
(2)
(1)
Increase in borrowings
-
7
Repayment of borrowings
(5)
(7)
Net cash inflow/(outflow)from financing activities
8,655
(1)
Net increase/(decrease) in cash and cash equivalents
450
(602)
Cash and cash equivalents at start of the year
3,974
4,576
Cash and cash equivalents at end of year
4,424
3,974
ERGOMED PLC
NOTES TO THE UNAUDITED PRELIMINARY RESULTS
For the year ended 31 December 2016
1. BASIS OF PREPARATION
The unaudited preliminary results for the year ended 31 December 2016 were approved by the Board of Ergomed plc on 27 March 2017. The unaudited preliminary results do not constitute the statutory financial statements within the meaning of section 434 of the Companies Act 2006, but are an extract from the financial statements. They are based on, and are consistent with, those in the Group's statutory accounts for the year ended 31 December 2016 and those financial statements will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Financial statements for the year ended 31 December 2015 have been delivered to the Registrar of Companies, with an unmodified opinion.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards, as adopted by the European Union (EU) (IFRS), this announcement does not in itself contain sufficient information to comply with IFRS.
The audited statutory financial statements for the year ended 31 December 2016 are expected to be distributed to shareholders in April 2017 and will be available at the registered office of the Company, 26-28 Frederick Sanger Road, Surrey Research Park, Guildford, Surrey, GU2 7YD. Details can also be found on the Company's website at: www.ergomedplc.com.
The Consolidated balance sheet for 2014 and 2015 has been re-stated. The re-statement had no impact on the Consolidated income statement, Consolidated cash flow statement or the net assets of the Group. This is detailed in note 14.
GOING CONCERN
The unaudited preliminary results have been prepared on the going concern basis, which assumes that the Group will have sufficient funds to continue in operational existence for the foreseeable future, being a period of no less than 12 months from the expected date of signing of the financial statements in April 2017. Having regard to the performance of the business, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. The Group is financed by funds generated from profitable operations and equity.
The Directors have reviewed a cash flow forecast ("the Forecast") for the period ending 31 December 2018. The Forecast represents the Directors' best estimate of the Group's future performance and necessarily includes a number of assumptions, including the level of revenues. The Forecast demonstrates that the Directors have a reasonable expectation that the Group will be able to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of the financial statements.
On the basis of the above factors and, having made appropriate enquiries, the Directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these unaudited preliminary results.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Group's accounting policies
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the Directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the unaudited preliminary results.
Revenue recognition
The amount of revenue to be recognised is based on, inter alia, management's estimate of the fair value of the consideration received or receivable, the stage of completion and of the point in time at which management considers that it becomes probable that economic benefits will flow to the entity (as the outcome is not always certain at the inception of a contract).
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period, that may 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.
Bad debt provision
In determining the level of provisioning for bad debts, the Directors have considered the aging of trade receivables, and the payment history and financial position of debtors. The provision against trade receivables as at 31 December 2016 was 1,016,000 (2015: 233,000).
Impairment of Goodwill
Under IFRSs, goodwill is reviewed for impairment at least annually. Determining whether goodwill is impaired requires an estimation of the recoverable amount of the cash-generating units to which goodwill has been allocated. The calculation of the recoverable amount requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to determine whether the recoverable amount is greater than the carrying value. The impairment provision against goodwill as at 31 December 2016 was nil (2015: nil).
Fair value measurements
Some of the Group's assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group engages third party qualified valuers to perform the valuation. The Directors work closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model.
The Group incurs share-based payment charges in relation to share options awards made in the current and prior periods. This charge is based on the fair value of such share options for financial reporting purposes. In estimating the fair value of a share-based payment, the Group engages third party qualified valuers to perform the valuation. The Directors work closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model.
2. OPERATING SEGMENTS
Products and services from which reportable segments derive their revenues
The Directors are of the opinion that the Group operates as two business segments; clinical research services ("CRS") and drug safety and medical information services ("DS&MI"). The business segment, CRS includes the results of O+P and GASD which were acquired on 12 June 2016. DS&MI includes the results of PharmInvent which was acquired on 28 November 2016.
Geographical information
The Group's revenue from external customers by geographical location is detailed below:
2016
Revenue from external customers
CRS
000s
DS&MI
000s
Total
000s
UK
3,330
4,746
8,076
Europe, Middle East and Africa
15,590
4,461
20,051
North America
6,490
4,018
10,508
Asia
367
27
394
Australia
-
204
204
25,777
13,456
39,233
2015
Revenue from external customers
CRS
000s
DS&MI
000s
Total
000s
UK
2,748
3,395
6,143
Europe, Middle East and Africa
9,407
2,878
12,285
North America
7,945
1,874
9,819
Asia
1,806
3
1,809
Australia
-
122
122
21,906
8,272
30,178
2016
CRS
000s
DS&MI
000s
Eliminations
000s
Consolidated
total
000s
Revenue
Third party sales
25,777
13,456
-
39,233
Intersegment sales and recharges
670
2
(672)
-
Total revenue
26,447
13,458
(672)
39,233
2016
CRS
000s
DS&MI
000s
Eliminations
000s
Consolidated
total
000s
Segment result
203
3,586
9
3,798
Research and development
(1,040)
Amortisation of acquired fair valued intangible assets
(771)
Share-based payment charge
(398)
Deferred consideration for acquisition
(690)
Write back of deferred consideration for acquisition
460
Acquisition costs
(584)
Exceptional items
(177)
Operating profit
598
Investment revenues
2
Finance costs
(274)
Profit before tax
326
Tax
153
Profit after tax
479
2015
CRS
000s
DS&MI
000s
Eliminations
000s
Consolidated
total
000s
Revenue
Third party sales
21,906
8,272
-
30,178
Intersegment sales and recharges
67
9
(76)
-
Total revenue
21,973
8,281
(76)
30,178
2015
CRS
000s
DS&MI
000s
Eliminations
000s
Consolidated
total
000s
Segment result
1,165
2,102
(2)
3,265
Amortisation of acquired fair valued intangible assets
(596)
Share-based payment charge
(288)
Acquisition costs
(272)
Exceptional items
(37)
Operating profit
2,072
Investment revenues
1
Finance costs
(1)
Profit before tax
2,072
Tax
(520)
Profit after tax
1,552
The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit represents the profit earned by each segment. This is the measure reported to the Group's Chief Executive Officer for the purpose of resource allocation and assessment of segment performance.
Segment net assets
2016
000s
2015
000s
CRS
16,489
5,913
DS&MI
18,119
11,023
Consolidated total net assets
34,608
16,936
For the purposes of monitoring segment performance and allocating resources between segments, the Group's Chief Executive Officer monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable segments.
Other segment information
Depreciation and
amortisation
Additions to
non-current assets
2016
000s
2015
000s
2016
000s
2015
000s
CRS
528
286
705
238
DS&MI
499
427
404
317
1,027
713
1,109
555
Information about major customers
In 2016, the Group had two customers that contributed 10% or more to the Group's revenue. Revenues of approximately 5,479,000 and 4,771,000 were recognised from these customers respectively for clinical research services.
In 2015, the Group had two customers that contributed 10% or more to the Group's revenue. Revenues of approximately 5,219,000 and 5,181,000 were recognised from these customers respectively.
3. FINANCE COSTS
2016
000s
2015
000s
Interest payable
(2)
(1)
Finance charge for deferred consideration for acquisition
(272)
-
(274)
(1)
4. TAXATION
2016
000s
2015
000s
Current tax
UK corporation tax (credit)/charge for the year
(181)
349
Overseas corporation tax
180
308
Adjustment in respect of prior years
(16)
13
Current tax (credit)/charge
(17)
670
Deferred tax
Origination and reversal of timing differences
(40)
(143)
Effect of changes in tax rates
(96)
(7)
Tax (credit)/charge on profit
(153)
520
The UK corporation tax credit for the year comprises an R&D tax credit.
In addition to the amounts charged to the income statement and other comprehensive income, the following amounts have been recognised directly in equity:
2016
000s
2015
000s
Deferred tax
Change in estimated excess tax deductions related to share-based payments
(118)
(1)
Total income tax credit recognised directly in equity
(118)
(1)
5. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the following data:
2016
'000
2015
'000
Earnings for the purposes of basic earnings per share being net profit attributable to owners of the Company
479
1,552
Effect of dilutive potential ordinary shares
-
-
Earnings for the purposes of diluted earnings per share
479
1,552
2016
No.
2015
No.
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share
35,573,733
28,750,000
Effect of dilutive potential ordinary shares
Share options
1,484,600
1,015,223
Weighted average number of ordinary shares for the purposes of diluted earnings per share
37,058,333
29,765,223
6. ACQUISITION OF SUBSIDIARY - HAEMOSTATIX
On 24 May 2016, Ergomed Plc acquired 100 per cent of the issued share capital of Haemostatix, a research and development company based in Nottingham, UK developing novel products for the surgical bleeding market. The acquisition of Haemostatix enhances Ergomed's portfolio of development products with the potential to generate significant shareholder value. The amounts provisionally recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below.
Book
valuation
Fair value adjustments
Provisional
valuation
000s
000s
000s
Intangible assets
-
15,200
15,200
Property, plant and equipment
4
-
4
Deferred tax asset
-
1,015
1,015
Total non-current assets
4
16,215
16,219
Trade and other debtors
164
-
164
Clinical trial inventory
45
-
45
Cash and equivalents
63
-
63
Current assets
272
-
272
Trade and other creditors
(1,365)
-
(1,365)
Deferred tax liability
-
(2,736)
(2,736)
Financial liabilities
(1,365)
(2,736)
(4,101)
Total identifiable net assets/(liabilities)
(1,089)
13,479
12,390
Goodwill
15,565
(13,479)
2,086
Total consideration
14,476
-
14,476
Satisfied by:
Cash
800
-
800
Equity
6,181
-
6,181
Deferred consideration
7,495
-
7,495
Total consideration
14,476
-
14,476
Net cash outflow arising on acquisition
Cash consideration
800
-
800
Less: cash and cash equivalent balances acquired
(63)
-
(63)
Transaction costs (note 8)
370
-
370
1,107
-
1,107
The provisional fair value of intangible assets relates to the in-process research and development of PeproStat and ReadyFlow. The provisional fair value of the financial assets includes receivables with a fair value of 164,000 and a gross contractual value of 164,000. The best estimate at acquisition date of the contractual cash flows not to be collected is nil.
Goodwill is provisionally valued at 2,086,000. None of the goodwill is expected to be deductible for income tax purposes. Deferred consideration represents the fair valuation of the additional consideration payable which could be an aggregate maximum of 20,000,000, subject to the future performance of the business.
Ergomed plc has a 12 month measurement period from the date of acquisition, and therefore the measurement period ends on 23 May 2017.
As a research and development company, Haemostatix is investing in its development portfolio and does not currently generate revenues. If the acquisition of Haemostatix had been completed on the first day of the financial year, group revenues for the year ended 31 December 2016 would have been unchanged and group profit before tax would have been 1,082,000 lower.
7. ACQUISITION OF SUBSIDIARY - O+P and GASD
On 12 June 2016, Ergomed acquired 100 per cent of the issued share capital of O+P and GASD. O+P is a long established contract research organisation based in Cologne, Germany and GASD is a specialist data management and biostatistics company. The acquisition of O+P and GASD brings, among other things, a proprietary electronic data capture system and specialist biostatics expertise which can be deployed across the Ergomed global platform.
O+P and GASD were acquired as a single unit. The amounts provisionally recognised in relation to both entities in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below.
Book
valuation
Fair value adjustments
Provisional
valuation
000s
000s
000s
Intangible assets
-
615
615
Property, plant and equipment
23
-
23
Total non-current assets
23
615
638
Trade and other debtors
91
-
91
Accrued income
71
-
71
Corporation Tax receivable
6
-
6
Cash and equivalents
498
-
498
Current assets
666
-
666
Trade and other creditors
(218)
-
(218)
Tax payable
(2)
-
(2)
Deferred tax
-
(164)
(164)
Financial liabilities
(220)
(164)
(384)
Total identifiable net assets
469
451
920
Goodwill
938
(451)
487
Total consideration
1,407
-
1,407
Satisfied by:
Cash
802
-
802
Equity
190
-
190
Deferred consideration
415
-
415
Total consideration
1,407
-
1,407
Net cash inflow arising on acquisition
Cash consideration
802
-
802
Less: cash and cash equivalent balances acquired
(498)
-
(498)
Transaction expenses (note 8)
85
-
85
389
-
389
The provisional fair value of the financial assets includes receivables with a fair value of 91,000 and a gross contractual value of 91,000. The best estimate at acquisition date of the contractual cash flows not to be collected is nil.
Goodwill is provisionally valued at 487,000 and is attributable to the synergies and the enhanced offering of the Ergomed group following the acquisition. None of the goodwill is expected to be deductible for income tax purposes.
Deferred consideration represents the provisional fair valuation of the additional consideration payable, subject to the future performance of the business.
Ergomed plc has a 12 month measurement period from the date of acquisition, and therefore the measurement period ends on 11 June 2017.
If the acquisition of O+P and GASD had been completed on the first day of the financial year, group revenues for the year ended 31 December 2016 would have been 381,000 higher and group profit before tax would have been 134,000 lower.
8. ACQUISITION OF SUBSIDIARY - PHARMINVENT
On 28 November 2016, Ergomed acquired 100 per cent of the issued share capital of PharmInvent. PharmInvent offers a comprehensive range of pharmacovigilance and regulatory services to over 100 clients in the global pharmaceutical industry. Pharmacovigilance services include an outsourced global network of 95 Qualified Persons for Pharmacovigilance (QPPVs) in 50 countries, case management, risk management, audit, training and consulting services on the establishment and maintenance of pharmacovigilance systems. Regulatory services include strategic advice on regulatory strategy, clinical trial and protocol design and medical writing of regulatory submissions.
The amounts provisionally recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below.
Book
valuation
Fair value adjustments
Provisional
valuation
000s
000s
000s
Intangible assets
-
1,291
1,291
Property, plant and equipment
161
-
161
Total non-current assets
161
1,291
1,452
Trade and other debtors
786
-
786
Cash and equivalents
252
-
252
Current assets
1,038
-
1,038
Trade and other creditors
(300)
-
(300)
Tax payable
(45)
-
(45)
Deferred tax liability
-
(245)
(245)
Financial liabilities
(345)
(245)
(590)
Total identifiable net assets
854
1,046
1,900
Goodwill
3,270
(1,046)
2,224
Total consideration
4,124
-
4,124
Satisfied by:
Cash
3,299
-
3,299
Equity
825
-
825
Total consideration
4,124
-
4,124
Net cash inflow arising on acquisition
Cash consideration
3,299
-
3,299
Less: cash and cash equivalent balances acquired
(252)
-
(252)
Transaction expenses (note 8)
118
-
118
3,165
-
3,165
The provisional fair value of the financial assets includes receivables with a fair value of 786,000 and a gross contractual value of 786,000. The best estimate at acquisition date of the contractual cash flows not to be collected is nil.
Goodwill is provisionally valued at 2,224,000 and is attributable to the enhanced offering of the Ergomed group following the acquisition. None of the goodwill is expected to be deductible for income tax purposes.
In addition to the consideration identified above, deferred consideration is payable subject to the achievement of commercial milestones and conditional upon the continued employment of the vendors by the company. In accordance with IFRS 3 - Business Combinations, 690,000 has been charged to the profit and loss account in respect of deferred consideration relating to the year ended 31 December 2016.
Ergomed plc has a 12 month measurement period from the date of acquisition, and therefore the measurement period ends on 27 November 2017.
If the acquisition of PharmInvent had been completed on the first day of the financial year, group revenues for the year ended 31 December 2016 would have been 3,216,000 higher and group profit before tax would have been 593,000 higher.
9. ACQUISITION COSTS
2016
000s
2015
000s
Acquisition of Sound Opinion Limited
7
54
Acquisition of Haemostatix (note 5)
370
-
Acquisition of O+P and GASD (note 6)
85
-
Acquisition of PharmInvent (note 7)
118
-
Other M&A activities
4
218
584
272
10. EXCEPTIONAL ITEMS
2016
000s
2015
000s
Establishment of Taiwan office
-
37
Establishment of PrimeVigilance U.S. office
177
-
177
37
11. RELATED PARTY TRANSACTIONS
Ergomed d.o.o., a company registered in Croatia, is under the control of Dr. Miroslav Reljanovi, who is a Director and shareholder of the Company. During the year the Company and its subsidiaries were charged 240,000 (2015: 160,000) by Ergomed d.o.o. and its subsidiaries in respect of clinical research costs and other administrative services. At 31 December 2016 a balance of 37,000 was owed by the Company and its subsidiaries to Ergomed d.o.o. in respect of these costs (2015: 57,000). In addition, during the year, the Group sold medical equipment to a subsidiary of Ergomed d.o.o. for 33,000 (2015: nil).
Chesyl Pharma Limited is a company owned by Rolf Stahel, who is a Director of the Company. During the year, the Company was charged consultancy fees of 52,000 (2015: 54,000) in relation to the services of Rolf Stahel. At 31 December 2016, amounts payable to Chesyl Pharma in relation to such consultancy services and associated expenses were 12,000 (2015: 5,000).
All transactions with related parties take place on an arm's length basis.
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
12. EBITDA AND EBITDA (adjusted)
2016
2015
'000s
'000s
Operating profit
598
2,072
Adjust for:
Depreciation and amortisation charges 
within Other administrative expenses
256
117
Amortisation of acquired fair valued intangible assets
771
596
EBITDA
1,625
2,785
Share-based payment charge
398
288
Deferred consideration for acquisition
690
-
Write-back of deferred consideration for acquisition
(460)
-
Acquisition costs
584
272
Exceptional items
177
37
EBITDA (adjusted)
3,014
3,382
13. ADJUSTED EARNINGS PER SHARE
2016
'000
2015
'000
Earnings for the purposes of basic earnings per share being
net profit attributable to owners of the Company
479
1,552
Effect of dilutive potential ordinary shares
-
-
Earnings for the purposes of diluted earnings per share
479
1,552
Adjust for:
Amortisation of acquired fair valued intangible assets
771
596
Share-based payment charge
398
288
Deferred consideration for acquisition
690
-
Write-back of deferred consideration for acquisition
(460)
-
Acquisition costs
584
272
Exceptional items
177
37
Adjusted earnings for the purposes of diluted earnings per share
2,639
2,745
ADJUSTED EARNINGS PER SHARE
Basic 
7.4p 
9.5p
Diluted 
7.1p
9.2p
14. RESTATEMENT OF PRIOR YEAR BALANCE SHEET
In July 2014, Ergomed plc acquired the entire issued share capital of PrimeVigilance Limited for consideration comprising 6,000,000 in cash, and 1,875,000 shares of 0.01 each, valued at 1.60 per share. The excess of share value over the nominal value of those shares was taken to the share premium account. However, under the Companies Act 2006, these amounts should have been posted to the merger reserve. An adjustment has been made to the Consolidated balance sheet as at 31 December 2014 and 31 December 2015. This adjustment has no impact on the net assets of the Group, the Consolidated income statement or the Consolidated cash flow statement. The impact on the Consolidated balance sheet is set out below.
2015 
Previously reported
Adjustment
2015
Re-stated
'000s
'000s
'000s
Non-current assets
Goodwill
7,488
-
7,488
Other intangible assets
2,819
-
2,819
Property, plant and equipment
335
-
335
Investments
183
-
183
Deferred tax asset
365
-
365
11,190
-
11,190
Current assets
Trade and other receivables
9,528
-
9,528
Cash and cash equivalents
3,974
-
3,974
13,502
-
13,502
Total assets
24,692
-
24,692
Current liabilities
Borrowings
(5)
-
(5)
Trade and other payables
(5,955)
-
(5,955)
Deferred revenue
(795)
-
(795)
Current tax liability
(478)
-
(478)
Total current liabilities
(7,233)
-
(7,233)
Net current assets
6,269
-
6,269
Non-current liabilities
Borrowings
(7)
-
(7)
Deferred tax liability
(516)
-
(516)
Total liabilities
(7,756)
-
(7,756)
Net assets
16,936
-
16,936
Equity
Share capital
288
-
288
Share premium account
12,342
(2,981)
9,361
Merger reserve
-
2,981
2,981
Share-based payment reserve
650
-
650
Translation reserve
(537)
-
(537)
Retained earnings
4,193
-
4,193
Total equity
16,936
-
16,936
2014
Previously reported
Adjustment
2014
Re-stated
'000s
'000s
'000s
Non-current assets
Goodwill
7,282
-
7,282
Other intangible assets
2,927
-
2,927
Property, plant and equipment
185
-
185
Investments
39
-
39
Deferred tax asset
323
-
323
10,756
-
10,756
Current assets
Trade and other receivables
6,343
-
6,343
Cash and cash equivalents
4,576
-
4,576
10,919
-
10,919
Total assets
21,675
-
21,675
Current liabilities
Borrowings
(7)
-
(7)
Trade and other payables
(5,010)
-
(5,010)
Deferred revenue
(594)
-
(594)
Current tax liability
(144)
-
(144)
Total current liabilities
(5,755)
-
(5,755)
Net current assets
5,164
-
5,164
Non-current liabilities
Borrowings
(6)
-
(6)
Deferred tax liability
(575)
-
(575)
Total liabilities
(6,336)
-
(6,336)
Net assets
15,339
-
15,339
Equity
Share capital
288
-
288
Share premium account
12,342
(2,981)
9,361
Merger reserve
-
2,981
2,981
Share-based payment reserve
362
-
362
Translation reserve
(293)
-
(293)
Retained earnings
2,640
-
2,640
Total equity
15,339
-
15,339

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