Unaudited Consolidated Profit and Loss Account
Notes Half year Half year Year
Ended Ended Ended
30.06.02 30.06.01 31.12.01
'000 pounds '000 pounds '000 pounds
Turnover 2,3 5,780 8,712 13,376
Net operating costs (28,767) (22,879) (49,396)
Operating loss (22,987) (14,167) (36,020)
Share of joint venture loss 3 (1,641) -- (2,007)
Profit on disposal -- 109 82
Loss on ordinary activities
before interest and taxation (24,628) (14,058) (37,945)
Net interest receivable 3,256 5,413 9,733
Loss on ordinary
activities before taxation (21,372) (8,645) (28,212)
Tax on loss on ordinary activities 1,853 1,413 2,864
Loss for the period (19,519) (7,232) (25,348)
Loss per ordinary 5p share
- basic and diluted 4 (35.11p) (13.25p) (46.04p)
The Group has no recognised gains and losses other than the losses above and therefore no separate statement of total recognised gains and losses has been presented.
There is no difference between the losses on ordinary activities before taxation and the losses for the periods stated above, and their historical cost equivalents.
Notes Half year Half year Year
Ended Ended Ended
30.06.02 30.06.01 31.12.01
'000 pounds '000 pounds '000 pounds
Fixed assets
Tangible assets 14,800 14,089 14,221
Investments
Investments in joint venture
- share of gross assets 11,874 15,000 14,679
Investment in joint venture
- share of gross liabilities (522) -- (1,686)
Investment in joint venture
- provision for unrealised profit (2,162) (3,250) (2,708)
3 9,190 11,750 10,285
Other investments 5 7,779 -- 4,251
31,769 25,839 28,757
Current assets
Stock 321 251 346
Debtors 10,116 9,837 9,626
Cash at bank and in hand 153,376 195,872 176,618
163,813 205,960 186,590
Creditors: amounts
falling due within one year (18,622) (15,836) (18,250)
Net current assets 145,191 190,124 168,340
Total assets less
current liabilities 176,960 215,963 197,097
Creditors: amounts falling
due after more than one year (1,614) (3,640) (2,399)
Provisions for
liabilities and charges -- (73) (87)
Net assets 175,346 212,250 194,611
Capital and reserves
Share capital 2,785 2,761 2,778
Share premium account 276,197 275,490 275,950
Capital reserve 11,107 11,107 11,107
Profit and loss
account (deficit) (114,743) (77,108) (95,224)
Equity shareholders' funds 6 175,346 212,250 194,611
The financial information contained in this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. This statement of half year results will be sent to all shareholders. Copies are available to members of the public at the Group's registered office shown at the back of this report.
The comparative figures for the year ended 31 December 2001 have been extracted from the Group's statutory financial statements for that financial year. Those accounts carried an unquantified audit report and have been filed with the Registrar of Companies.
Unaudited Consolidated Cash Flow Statement
Notes Half year Half year Year
Ended Ended Ended
30.06.02 30.06.01 31.12.01
'000 pounds '000 pounds '000 pounds
Net cash outflow from
operating activities A (22,379) (3,649) (22,164)
Returns on investments
and servicing of finance 4,677 3,437 9,042
Taxation 1,281 -- --
Purchases of tangible fixed assets (3,547) (3,011) (5,306)
Purchases of fixed asset investments (3,528) (15,000) (19,251)
Disposals - cash consideration -- 115 122
Net cash outflow before
management of liquid
resources and financing (23,496) (18,108) (37,557)
Management of liquid resources 32,104 23,585 39,480
Financing 254 10,088 10,283
Increase in net cash B 8,862 15,565 12,206
A Reconciliation of operating
loss to net cash outflow
from operating activities
Operating loss (22,987) (14,167) (36,020)
Depreciation charges 2,476 2,001 4,418
Decrease/ (increase) in stock 25 (47) (170)
(Increase)/ decrease in debtors (1,339) (344) 34
(Decrease)/ increase
in deferred income (1,585) 5,721 6,815
Increase in creditors 1,031 3,187 2,759
608 10,518 13,856
Net cash outflow from
operating activities (22,379) (3,649) (22,164)
B Reconciliation of net cash
flow to movement in net funds
Increase in cash in the period 8,862 15,565 12,206
Cash inflow from movement
in liquid resources (32,104) (23,585) (39,480)
Movement in net funds
in the period (23,242) (8,020) (27,274)
Net funds at commencement
of the period 176,618 203,892 203,892
Net funds at the
end of the period 7 153,376 195,872 176,618
Notes to the Accounts
1. Accounting Policies
The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2001 statutory accounts.
The statements were approved by a duly appointed and authorised
committee of the Board of Directors on 25 September 2002.
2. Segmental Information
The geographical analysis of turnover, all arising in the UK, by
destination is as follows:
Half year Half year Year
Ended Ended Ended
30.06.02 30.06.01 31.12.01
'000 pounds '000 pounds '000 pounds
United Kingdom 1,946 3,260 5,422
Continental Europe 866 597 1,180
USA and Canada 2,915 4,853 6,772
Rest of the World 53 2 2
5,780 8,712 13,376
Details of turnover from Confirmant, a joint venture owned by OGS and Marconi, are given in note 3.
3. Interest in joint venture
In June 2001, OGS formed a joint venture with Marconi, called
Confirmant Limited, which will provide database services to
pharmaceutical and biotechnology companies.
As at 30 June 2002, there is a provision for unrealised profit,
2.2 million pounds, representing revenue from the sale of marketing
rights and data analysis software to Confirmant. This amount will be
released over the life of the assets to which it relates. Sales by OGS
to Confirmant during the period ended 30 June 2002 amounted to
1.9 million pounds (2001: 3.3 million pounds).
4. Losses per share
The basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of 19.5 million pounds
(2001: 7.2 million pounds) by the weighted average number of ordinary
shares in issue during the period, 55.6 million (2001: 54.6 million).
For diluted loss per share, the weighted average number of ordinary
shares in issue is adjusted to assume the exercise of all options which
would be potentially dilutive. There is no difference between the
basic and diluted loss per share.
5. Other investments
BioInvent NeoGenesis
International Pharmaceuticals
AB Inc Total
'000 pounds '000 pounds '000 pounds
Cost:
At 1 January 2002 -- 4,251 4,251
Additions 3,528 - 3,528
At 30 June 2002 3,528 4,251 7,779
Provisions:
At 1 January 2002 and 30 June 2002 -- -- --
Net book value:
At 30 June 2002 3,528 4,251 7,779
Net book value:
At 31 December 2001 -- 4,251 4,251
On 16 May 2002, OGS subscribed SEK52.0 million in cash at SEK39.1 per share in BioInvent International AB, as part of a research collaboration.
At 30 June 2002, BioInvent International AB's share price was SEK28.5 per share. However, this investment, and the investment in NeoGenesis Pharmaceuticals Inc, is not held for resale and management do not consider that any permanent diminution in value existed at that date.
6. Reconciliation of movements in shareholders' funds
Half year Half year Year
Ended Ended Ended
30.06.02 30.06.01 31.12.01
'000 pounds '000 pounds '000 pounds
Loss for the period (19,519) (7,232) (25,348)
New shares issued 254 10,091 10,552
Expenses of shares issued -- (285) (269)
Net (reduction in)/ addition
to shareholders' funds (19,265) 2,574 (15,065)
Opening shareholders' funds 194,611 209,676 209,676
Closing shareholders' funds 175,346 212,250 194,611
7. Analysis of net funds
31.12.01 Cash flow 30.06.02
'000 pounds '000 pounds '000 pounds
Cash at bank and in hand 14,052 8,862 22,914
Bank deposits - liquid resources 162,566 (32,104) 130,462
176,618 (23,242) 153,376
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.
