...Financial Review
* Profit and loss account
* The Group loss for the year ended 31 December 2000 was pounds 15.6 million
(1999 restated: pounds 10.4 million). Total revenues for the year increased to
pounds 8.9 million in 2000 (1999: pounds 8.7 million). Net operating costs
increased by 36 per cent to pounds 28.9 million (1999 restated: pounds 21.3
million). Net operating costs consist of direct and indirect research and
development costs, cost of sales, sales and distribution costs and
administrative expenses. Revenue and net operating costs were approximately
evenly split across the first and second halves of the year 2000.
The Group's total number of employees increased from 148 to 186 at the year end. Interest receivable for the year ended 31 December 2000 increased to pounds 3.2 million (1999: pounds 1.8 million), an average return of 6.1 per cent during the period (1999: 5.6 per cent). OGS has taken the benefit of the Research and Development Tax Credit and recognised pounds 1.2 million in these accounts.
The Group has revised its approach to the valuation of warrants resulting in a prior year charge of pounds 674,000.
Balance sheet and cash flow
Tangible fixed assets more than doubled during the year, increasing from pounds 5.7 million at the end of 1999 to pounds 12.7 million at the end of 2000, reflecting pounds 5.2 million expenditure on leasehold improvements, principally in relation to our new headquarters at Milton Park, and pounds 4.7 million on plant and equipment, including significant IT hardware and mass spectrometry equipment.
Debtor balances increased to pounds 6.1 million from pounds 3.8 million in 1999, principally reflecting an increase in bank interest accrued income and a pounds 1.2 million Research and Development Tax Credit at the year end.
Creditors due within one year have increased to pounds 10.7 million (1999: pounds 5.8 million) reflecting the expansion of the Group's activities during 2000, as well as the inclusion of a pounds 0.5 million accrual in respect of financing costs of the December share issues and an increase in deferred income of pounds 1.5 million. Creditors due after more than one year decreased from pounds 3.2 million at the end of 1999 to pounds 2.4 million at the end of 2000 as Pioneer Hi-Bred collaboration revenues continued to be transferred from deferred income to the profit and loss account.
Operational net cash outflow for the year was pounds 14.4 million (1999: pounds 13.2 million). The net cash outflow before use of liquid resources and financing was pounds 21.1 million (1999: pounds 14.2 million), including cash outflows to acquire tangible fixed assets of pounds 9.3 million (1999: pounds 3.9 million).
At 31 December 2000, the Group had cash and cash equivalents of pounds 203.9 million (1999: pounds 26.0 million) reflecting the successful completion of the March Placing and Open Offer, which raised pounds 32.9 million net of expenses, and the December Open Offer and International Offering, which raised pounds 157.4 million net of expenses. These funds will be directed towards drug discovery and development programmes for small molecules and therapeutic monoclonal antibodies, clinical trials and commercialisation of Vevesca(TM), new technology and further expansion of our facilities. We expect that 2001 will be another important year for OGS.
Annual General Meeting
Oxford GlycoSciences Plc's Annual General Meeting will be held at 10.30am on Thursday 10 May 2001 at the Randolph Hotel, Beaumont Street, Oxford OX1 2LN.
This release contains forward-looking statements, such as our plans to file a New Drug Application and Marketing Authorisation Application in mid- 2001, the success of Vevesca(TM) as a new approach to the treatment of Gaucher disease, the use of Vevesca(TM) as a monotherapy or in combination with enzyme therapy, the patentability of proteins and their uses, the success of collaborations, alliances and programmes, attaining competitive advantages, and confirmation of our technology and position. Factors that could cause actual results to vary significantly from those expressed or implied by these and other forward-looking statements include the success of our research and development strategy, the applicability of our discoveries, the validity of our technologies and our intellectual property position, the successful and timely completion of clinical studies and uncertainties related to the regulatory process.
For further information, please contact:
Oxford GlycoSciences Plc
Michael Kranda, Chief Executive Officer
Dr Stephen Parker, Chief Financial Officer
Tel: +44 (0)1235 208000
UK - Financial Dynamics
David Yates - Tel: +44 (0) 20 7269 7156
Sarah Mehanna - Tel: +44 (0) 20 7269 7236
USA - Feinstein Kean
Michelle Linn - Tel: +1 (508) 869-6146
Consolidated Profit and Loss Account
For the year ended 31 December 2000
2000 1999
(unaudited) (restated)
Notes pounds '000 pounds '000
Turnover 8,934 8,701
Net operating costs (28,904) (21,258)
Operating loss
(19,970) (12,557)
Profit on disposal
- 388
Loss on ordinary activities
before interest and taxation (19,970) (12,169)
Interest receivable
3,156 1,807
Loss on ordinary activities before taxation (16,814) (10,362)
Tax credit on loss on ordinary activities 1,205 -
Loss for the year (15,609) (10,362)
Loss per ordinary 5p share
- basic and diluted 4 (38.64p) (27.81p)
There is no difference between the losses on ordinary activities before
taxation and the losses for the years stated above, and their historical
cost equivalents. The results for the years above are derived entirely
from continuing activities.
Statement of Group Total Recognised Gains and Losses
For the year ended 31 December
2000 1999
(unaudited) (restated)
Notes pounds '000 pounds '000
Loss for the year (15,609) (10,362)
Total recognised losses for the year (15,609) (10,362)
Prior year adjustment - warrants 3 (674) -
Total losses recognised since last
annual report (16,283) (10,362)
Consolidated Balance Sheet
At 31 December 2000
Group
2000 1999
(unaudited) (restated)
Notes pounds'000 pounds'000
Fixed assets
Tangible assets 12,738 5,743
Current assets
Stock 226 222
Debtors 6,109 3,809
Cash at bank and in hand 203,892 25,969
210,227 30,000
Creditors: amounts falling due within one year (10,725) (5,806)
Net current assets 199,502 24,194
Total assets less current liabilities 212,240 29,937
Creditors: amounts falling due
after more than one year (2,383) (3,197)
Provisions for liabilities and charges (181) -
Net assets 209,676 26,740
Capital and reserves
Share capital 2,727 1,866
Share premium account 265,718 67,360
Capital reserve 11,107 11,107
Warrant reserve - 674
Profit and loss account (deficit) (69,876) (54,267)
Equity shareholders' funds 5 209,676 26,740
Consolidated Cash Flow Statement
For the year ended 31 December
2000 2000 1999 1999
(unaudited) (unaudited)
Notes pounds'000 pounds'000 pounds'000 pounds'000
Net cash outflow
from operating
activities A (14,447) (13,209)
Returns on
investments
and servicing
of finance
Interest received 2,575 2,013
Net cash inflow from
returns on
investments
and servicing
of finance 2,575 2,013
Capital expenditure and
financial investment
Purchases of tangible
fixed assets (9,266) (3,935)
Sale of tangible
fixed assets - 6
Net cash outflow
from capital expenditure
and financial investment (9,266) (3,929)
Disposals
Cash consideration - 926
Net cash outflow before
use of liquid
resources and financing (21,138) (14,199)
Management of
liquid resources B (176,738) 13,567
Financing
Issue of ordinary
share capital 213,873 115
Expenses paid in
connection
with share issues (14,812) -
Net cash inflow
from financing 199,061 115
Increase/
(decrease)
in net cash C 1,185 (517)
Notes to the Consolidated Cash Flow Statement
A Reconciliation of operating loss to net cash outflow from operating
activities
2000 2000 1999 1999
(restated) (restated)
pounds '000 pounds '000 pounds '000 pounds '000
Operating loss (19,970) (12,557)
Depreciation charges
(including profit/
loss on disposals) 2,867 2,384
Warrants issued - 674
Increase in stock (4) (59)
Increase in debtors (514) (2,960)
Increase/ (decrease)
in deferred income 706 (1,190)
Increase in creditors 2,468 499
5,523 (652)
Net cash outflow from
operating activities (14,447) (13,209)
B Reconciliation of net cash flow to movement in net funds
2000 2000 1999 1999
pounds '000 pounds '000 pounds '000 pounds '000
Increase/ (decrease)
in cash in the year 1,185 (517)
Cash outflow/ (inflow)
from increase/ (decrease)
in liquid resources 176,738 (13,567)
Movement in net funds in the year 177,923 (14,084)
Net funds at 1 January 25,969 40,053
Net funds at 31 December 203,892 25,969
C Analysis of net funds
At 1 At 31
January December
2000 Cash flow 2000
pounds '000 pounds '000 pounds '000
Cash at bank and in hand 661 1,185 1,846
Bank deposits -
liquid resources 25,308 176,738 202,046
25,969 177,923 203,892
Liquid resources represent all deposits with an original maturity of between 24 hours and one year. Cash includes cash in hand and deposits of up to 24 hours which are payable on demand.
Notes
1. Preliminary results
The preliminary announcement was approved by the Board of Directors on Wednesday 14 March 2001.
The preliminary results for the year ended 31 December 2000 represent unaudited and abridged financial statements and have not yet been delivered to the Registrar of Companies. The comparative figures for the year ended 31 December 1999 have been taken from, but do not constitute, the Group's financial statements for that year. Those financial statements have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985.
2. Accounting policies
The results for the year ended 31 December 2000 have been prepared in accordance with UK generally accepted accounting principles. The accounting policies applied are consistent with those set out in the Annual Report and Accounts for the year ended 31 December 1999, with the exception of the treatment of warrants described below.
3. Treatment of warrants
The Group has changed its approach to the treatment of warrants, as discussed in the interim financial statements for the half year ended 30 June 2000. This new approach resulted in the valuation of the warrants issued in November 1999 being pounds 674,000. This has been treated as a prior year adjustment for 31 December 1999 and has increased both the loss for 1999 and the profit and loss account deficit at 31 December 1999 by pounds 674,000. The creation of the necessary warrant reserve amounting to pounds 674,000 at 31 December 1999 results in there being no impact on equity shareholders' funds at 31 December 1999.
The change is a one-off charge in 1999 and has no cash effect on the Group. All warrants held by G D Searle & Co were exercised during 2000.
4. Loss per ordinary 5p share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year.
For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume exercise of all options, which would be potentially dilutive. There is no difference between the basic and diluted loss per share.
Basic and diluted loss per share
2000 1999
Weighted Weighted Per
average Per Average share
number share Loss number amount
Loss of shares amount(restated)of shares(restated)
pounds '000 '000 pence pounds '000 '000 pence
Loss attributable
to ordinary
shareholders (15,609) 40,397 (38.64) (10,362) 37,256 (27.81)
5 Reconciliation of movements in shareholders' funds
Group 2000 1999
(restated)
pounds '000 pounds '000
Loss for the year (15,609) (10,362)
New share capital issued 213,873 115
Expenses of share issue (15,328) -
Prior year adjustment - warrants - 674
Net addition to/ (reduction in)
shareholders' funds 182,936 (9,573)
Opening shareholders' funds 26,740 36,313
Closing shareholders' funds 209,676 26,740 |
