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ERGO - Ergomed News Story

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Market Cap £334.0m
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Revenue £68.3m
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Ergomed plc - Unaudited Preliminary Results for 2016 - Part 1

Tue 28th March, 2017 7:00am
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

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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