results contd.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
Preliminary Statement of Results for the Year ended 30 September 2002
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Convenience
translation
year ended Year ended Year ended Year ended
September 30 September 30 September 30 September 30
2002 2002 2001 2000
US$'000 pounds'000 pounds'000 pounds'000
Turnover 14,869 9,471 7,121 7,018
Direct costs (126) (80) (351) (381)
Gross profit 14,743 9,391 6,770 6,637
Research and
development expenses (49,152) (31,307) (21,393) (15,728)
Drug Royalty
Corporation
transaction costs (12,423) (7,913) -- --
Other general and
administration
expenses (13,064) (8,321) (6,443) (4,842)
General and
administration
expenses (25,487) (16,234) (6,443) (4,842)
Operating loss (59,896) (38,150) (21,066) (13,933)
Interest receivable
(net) 10,026 6,386 9,295 5,644
Loss on ordinary
activities before
taxation (49,870) (31,764) (11,771) (8,289)
Taxation on loss on
ordinary activities 5,584 3,557 -- --
Loss for the
financial year (44,286) (28,207) (11,771) (8,289)
Loss per share - basic
and diluted (pence) 78.7p 33.3p 27.5p
Consolidated Statement of Total Recognised Gains and Losses
Convenience
translation
year ended Year ended Year ended Year ended
30 September 30 September 30 September 30 September
2002 2002 2001 2000
US$'000 pounds'000 pounds'000 pounds'000
Loss for the
financial year (44,286) (28,207) (11,771) (8,289)
Loss on foreign
exchange translation 151 96 1 (7)
Total recognised
losses relating to
the year (44,135) (28,111) (11,770) (8,296)
The losses for all years arise from continuing operations.
This financial information has been prepared in accordance with UK GAAP. The dollar translations are solely for the convenience of the reader.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
Preliminary Statement of Results for the Year ended 30 September 2002
Consolidated Balance Sheet
Convenience
translation
as at As at As at
30 September 30 September 30 September
US$'000 pounds'000 pounds'000
Fixed assets
Intangible assets 12,455 7,933 4,075
Tangible fixed assets 19,514 12,429 6,642
Investments 338 215 --
32,307 20,577 10,717
Current assets
Debtors 10,293 6,556 4,940
Investment in liquid resources 198,910 126,694 156,228
Cash at bank and in hand 4,837 3,081 585
214,040 136,331 161,753
Creditors
Amounts falling due within
one year (19,724) (12,563) (8,335)
Net current assets 194,316 123,768 153,418
Total assets less current
liabilities 226,623 144,345 164,135
Creditors
Amounts falling due after more
than one year (13,471) (8,580) (8,085)
Net assets 213,152 135,765 156,050
Capital and reserves
Called-up share capital 5,685 3,621 3,546
Share premium account 317,978 202,534 195,017
Other reserve 21,126 13,456 13,451
Profit and loss account (131,637) (83,846) (55,964)
Shareholders' funds - all
equity 213,152 135,765 156,050
This financial information has been prepared in accordance with UK GAAP. The dollar translations are solely for the convenience of the reader.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
Preliminary Statement of Results for the Year ended 30 September 2002
Consolidated Cash Flow Statement
Convenience
translation
year ended Year ended Year ended Year ended
30 September 30 September 30 September 30 September
2002 2002 2001 2000
US$'000 pounds'000 pounds'000 pounds'000
Net cash outflow from
operations (42,088) (26,808) (19,150) (3,609)
Returns on investments
and servicing of
finance
Interest received 11,866 7,558 8,322 4,245
Taxation 1,444 920 -- --
Capital expenditure
and financial
investment
Purchase of tangible
fixed assets (15,639) (9,961) (3,485) (1,018)
Sale of tangible
fixed assets -- -- 4 44
(15,639) (9,961) (3,481) (974)
Net cash outflow
before management
of liquid resources
and financing (44,417) (28,291) (14,309) (338)
Management of liquid
resources 46,368 29,534 274 (133,729)
Financing
Issue of ordinary
share capital 2,273 1,448 15,380 132,302
Capital elements of
finance lease rental
payments -- -- -- (9)
2,273 1,448 15,380 132,293
Increase/(decrease)
in cash 4,224 2,691 1,345 (1,774)
This financial information has been prepared in accordance with UK GAAP. The dollar translations are solely for the convenience of the reader.
Notes to the financial information
Accounting policies
This financial information has been prepared in accordance with the policies set out in the statutory financial statements for the year ended 30 September 2001 with the exception that the Company has adopted FRS19 "Deferred Tax" in order to comply with the latest UK accounting standards. This has no effect on either the current period or prior periods.
Convenience translation
The consolidated financial statements are presented in pounds sterling. The consolidated financial statements as of and for the period ended 30 September 2002 are also presented in United States Dollars as a convenience translation. The Dollar amounts are presented solely for the convenience of the reader and have been calculated using an exchange rate of pound 1: US$1.5700, the noon buying rate as of 30 September 2002. No representation is made that the amounts could have been or could be converted into United States Dollars at this or any other rates.
Drug Royalty Corporation transaction costs
General and administration expenses include pounds 7.9 million of costs incurred in the year ended 30 September 2002 relating to the two transactions entered into with Drug Royalty Corporation Inc. of Canada (DRC) during the year (2001: none). In January 2002, CAT announced a recommended offer for the whole of DRC. A competing offer was made by Inwest Investments Ltd of Canada which was accepted in April. Under an agreement with DRC, the Group received a payment of pounds 1.5 million in 1994 in return for rights to a percentage of revenues (and certain other payments) received by the Group over a period terminating in 2009. The pounds 1.5 million was deferred and recognised over the period for which the rights were purchased. On 2 May 2002, CAT bought out this royalty obligation to DRC for pounds 6.1 million (C$14 million) with the issue of 463,818 CAT shares to DRC. The remaining balance of pounds 0.6 million of deferred income has all been released in the period. The professional fees incurred in the Group's bid and royalty buy-back were pounds 1.8 million.
Loss per share
The loss per ordinary share diluted loss per share are equal because share options are only included in the calculation of diluted earnings per share if their issue would decrease the net profit per share or increase the net loss per share. The calculation is based on the following: for the year ended 30 September 2002, the year ended 30 September 2001 and the year ended 30 September 2000 respectively. Losses of pounds 28,207,000, pounds 11,771,000, and pounds 8,289,000. Weighted average number of shares in issue of 35,828,446, 35,313,260 and 30,179,818. The Company has ordinary shares in issue of 36,214,349 and a total of 1,501,807 ordinary shares under option as of 30 September 2002.
Reconciliation of operating loss to operating cash outflow
Convenience Year ended Year ended Year ended
translation 30 30 30
year ended 30 September September September
September 2002 2001 2000
2002
US$'000 pounds'000 pounds'000 pounds'000
Operating loss (59,896) (38,150) (21,066) (13,933)
Depreciation charge 4,109 2,617 2,146 1,808
Amortisation of intangible
fixed assets 1,385 882 373 374
Shares issued to buy out
DRC royalty agreement 9,654 6,149 -- --
Loss/(profit) on disposal
of fixed assets -- -- 1 (5)
(Increase) in debtors (248) (158) (515) (1,159)
Increase/(decrease) in
creditors 2,908 1,852 (89) 9,306
(42,088) (26,808) (19,150) (3,609)
Analysis and reconciliation
of net funds
1 October Cash flow Exchange 30
2001 movement September
2002
pounds'000 pounds'000 pounds'000 pounds'000
Cash at bank and in hand 585 2,528 (32) 3,081
Overdrafts (163) 163 -- --
2,691 (32)
Liquid resources 156,228 (29,534) -- 126,694
Net funds 156,650 (26,843) (32) 129,775
2002 2001 2000
pounds'000 pounds'000 pounds'000
Increase/(decrease) in cash in the year 2,691 1,345 (1,774)
(Decrease)/increase in liquid resources (29,534) (274) 133,729
Decrease in lease financing -- -- 9
Change in net funds resulting
from cash flows (26,843) 1,071 131,964
Exchange movement (32) -- 2
Movement in net funds in year (26,875) 1,071 131,966
Net funds at 1 October 2001 156,650 155,579 23,613
Net funds at 30 September 2002 129,775 156,650 155,579
Reconciliation of movements in
group shareholders' funds
2002 2001
pounds'000 pounds'000
Loss for the financial year (28,207) (11,771)
Other recognised gains and losses
relating to the year 325 1
(27,882) (11,770)
New shares issued 7,597 15,380
Net (decrease)/increase in shareholders' funds (20,285) 3,610
Opening shareholders' funds 156,050 152,440
Closing shareholders' funds 135,765 156,050
Financial Statements
The preceding information, comprising the Consolidated Profit and Loss Account, Consolidated Statement of Total Recognised Gains and Losses, Consolidated Balance Street, Consolidated Cash Flow Statement and associated notes, does not constitute the Company's statutory financial statements for the years ended 30 September 2002, 2001 and 2000 within the meaning of section 240 of the Companies Act 1985, but is derived from those financial statements. Statutory financial statements for the year ended 30 September 2001 have been delivered to the Registrar of Companies and those for the year ended 30 September 2002 will be delivered to the Registrar of Companies after the Company's Annual General Meeting. The auditors have reported on those financial statements; their reports were unqualified and did not contain any statements under s237 (2) or (3) Companies Act 1985.
The annual report and financial statements for the year ended 30 September 2002 will be posted to shareholders by 31 December 2002 and will be available shortly thereafter from our registered office (as of December 2002):
The Company Secretary
Cambridge Antibody Technology Group plc
Milstein Building
Granta Park
Cambridge
CB1 6GH, UK
Tel: +44 (0) 1223 471471
This preliminary announcement was approved by the Board on Friday 15 November 2002.
Quarterly financial information
Three months Three months Three months Three months
ended 30 ended 30 ended 31 ended 31
September June March December
2002 2002 2002 2001
unaudited unaudited unaudited unaudited
pounds'000 pounds'000 pounds'000 pounds'000
Consolidated profit
and loss account
Turnover 2,598 2,021 2,974 1,878
Direct costs (16) -- 20 (84)
Gross profit 2,582 2,021 2,994 1,794
Research and development
expenses (10,339) (7,206) (7,652) (6,110)
Drug Royalty Corporation
transaction costs -- (6,678) (1,235) --
Other general and
administration expenses (3,033) (2,005) (1,726) (1,557)
General and administration
expenses (3,033) (8,683) (2,961) (1,557)
Operating loss (10,790) (13,868) (7,619) (5,873)
Interest receivable (net) 1,426 1,536 1,564 1,860
Loss on ordinary activities
before taxation (9,364) (12,332) (6,055) (4,013)
Taxation on loss on
ordinary activities 2,637 -- 920 --
Loss for the financial
period (6,727) (12,332) (5,135) (4,013)
Consolidated cash flow statement
Net cash outflow from
operations (6,646) (9,296) (6,569) (4,297)
Returns on investments and
servicing of finance
Interest received 1,223 2,254 1,688 2,393
Taxation 920 -- -- --
Capital expenditure and
financial investment
Purchase of fixed assets (3,645) (2,384) (3,021) (911)
Net cash outflow before
management of liquid
resources and financing (8,148) (9,426) (7,902) (2,815)
Management of liquid
resources 8,875 8,653 6,551 5,455
Financing
Issue of ordinary shares 29 51 583 785
(Decrease)/increase in cash 756 (722) (768) 3,425
Notes to Editors:
Cambridge Antibody Technology (CAT)
* CAT is a UK-based biotechnology company using its proprietary
technologies and capabilities in human monoclonal antibodies for drug
discovery and drug development. Based near Cambridge, England, CAT
currently employs around 290 people.
* CAT is a leader in the discovery and development of human therapeutic
antibodies and has an advanced proprietary platform technology for
rapidly isolating human monoclonal antibodies using phage display
systems. CAT has extensive phage antibody libraries, currently
incorporating more than 100 billion distinct antibodies. These
libraries form the basis for the Company's strategy to develop a
portfolio of antibody-based drugs.
* D2E7, the leading CAT-derived antibody, has been submitted for
regulatory review by Abbott (responsible for development and marketing)
following the completion of Phase III trials. Six other CAT-derived
human therapeutic antibodies are at various stages of clinical trials.
* CAT has alliances with a large number of pharmaceutical and
biotechnology companies to discover, develop and commercialise human
monoclonal antibody-based products. CAT has also licensed its
proprietary human phage antibody libraries to several companies for
target validation and drug discovery. CAT's collaborators include:
Abbott, Amgen, Amrad, Chugai, Elan, Genzyme, Human Genome Sciences,
Merck & Co, Pharmacia and Wyeth Research.
* CAT is listed on the London Stock Exchange and on NASDAQ since June
2001. CAT raised #41m in its IPO in March 1997 and pounds 93m in a
secondary offering in March 2000.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:
This press release contains statements about Cambridge Antibody Technology Group plc ("CAT") that are forward looking statements. All statements other than statements of historical facts included in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward looking statements are based on numerous assumptions regarding CAT's present and future business strategies and the environment in which CAT will operate in the future. Certain factors that could cause CAT's actual results, performance or achievements to differ materially from those in the forward-looking statements include: market conditions, CAT's ability to enter into and maintain collaborative arrangements, success of product candidates in clinical trials, regulatory developments and competition. |
