Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | Midatech Pharma Plc |
Entity Central Index Key | 0001643918 |
Document Type | 20-F |
Trading Symbol | MTP |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Title of 12(b) Security | Ordinary Shares, nominal value 0.1p each |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity Emerging Growth Company | false |
Entity Reporting Status Current | Yes |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | DE |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 63,073,852 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Revenue | £ 180 | £ 312 | £ 149 |
Grant revenue | 163 | 362 | 1,789 |
Total revenue | 343 | 674 | 1,938 |
Other income | 12 | 15 | |
Research and development costs | (6,068) | (7,843) | (9,359) |
Distribution costs, sales and marketing | (6) | (323) | |
Administrative costs | (4,952) | (3,841) | (4,394) |
Impairment of intangible assets | (12,369) | ||
Loss from operations | (23,040) | (11,318) | (11,815) |
Finance income | 1 | 492 | 2 |
Finance expense | (431) | (97) | (587) |
Loss before tax | (23,470) | (10,923) | (12,400) |
Taxation | 1,281 | 1,785 | 2,032 |
Loss from continuing operations | (22,189) | (9,138) | (10,368) |
Loss from discontinued operations net of tax | (947) | (4,662) | |
Loss for the year attributable to the owners of the parent | (22,189) | (10,085) | (15,030) |
Items that will or may be reclassified subsequently to profit or loss: | |||
Exchange (losses)/gains arising on translation of foreign operations | 508 | (207) | 1,156 |
Exchange losses realised on disposal of subsidiaries | (3,842) | ||
Total other comprehensive income/loss net of tax | 508 | (207) | (2,686) |
Total comprehensive loss attributable to the owners of the parent Loss per share | £ (21,681) | £ (10,292) | £ (17,716) |
Continuing operations | |||
Basic and diluted loss per ordinary share - pence | £ (52) | £ (50) | £ (339) |
Discontinued operations | |||
Basic and diluted loss per ordinary share - pence | £ (5) | £ (153) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | |||
Property, plant and equipment | £ 542 | £ 2,154 | £ 1,983 |
Intangible assets | 12,379 | 12,374 | |
Other receivables due in greater than one year | 2,625 | 469 | |
Total non-current assets | 542 | 17,158 | 14,826 |
Current assets | |||
Inventories | |||
Trade and other receivables | 572 | 992 | 1,323 |
Taxation | 1,157 | 1,817 | 1,952 |
Cash and cash equivalents | 7,546 | 10,928 | 2,343 |
Total current assets | 9,275 | 13,737 | 5,618 |
Total assets | 9,817 | 30,895 | 20,444 |
Non-current liabilities | |||
Borrowings | 60 | 5,670 | 884 |
Provisions | 50 | 165 | |
Total non-current liabilities | 110 | 5,670 | 1,049 |
Current liabilities | |||
Trade and other payables | 1,230 | 4,494 | 2,103 |
Borrowings | 200 | 412 | 368 |
Provisions | 97 | ||
Derivative financial liability | 1,559 | 664 | |
Total current liabilities | 2,989 | 5,667 | 2,471 |
Total liabilities | 3,099 | 11,337 | 3,520 |
Issued capital and reserves attributable to owners of the parent | |||
Share capital | 1,063 | 1,023 | 1,003 |
Share premium | 74,364 | 65,879 | 52,939 |
Merger reserve | 53,003 | 53,003 | 53,003 |
Warrant reserve | 720 | ||
Foreign exchange reserve | (508) | (301) | |
Accumulated deficit | (122,432) | (99,839) | (89,720) |
Total equity | 6,718 | 19,558 | 16,924 |
Total equity and liabilities | £ 9,817 | £ 30,895 | £ 20,444 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Loss for the year | £ (22,189) | £ (10,085) | £ (15,030) |
Adjustments for: | |||
Depreciation of property, plant and equipment | 1,089 | 979 | 1,016 |
Depreciation of right of use asset | 118 | 303 | |
Amortisation of intangible fixed assets | 10 | 3 | 434 |
(Profit)/Loss on disposal of fixed assets | (226) | 165 | |
Impairment of intangible assets | 12,369 | ||
Finance income | (1) | (492) | (2) |
Finance expense | 431 | 97 | 587 |
Share-based payment credit | (404) | (34) | (36) |
Taxation | (1,281) | (1,785) | (2,032) |
Loss on sale of subsidiary | 1,407 | ||
Loss from discontinued operations, net of tax | 947 | ||
Foreign exchange (gains)/losses | 387 | (140) | 130 |
Cash flows from operating activities before changes in working capital | (9,697) | (10,207) | (13,361) |
Decrease in inventories | 347 | ||
Decrease in trade and other receivables | 493 | 725 | 1,030 |
(Decrease)/Increase in trade and other payables | (2,004) | 1,141 | (2,995) |
(Decrease)/Increase in provisions | (47) | (68) | 165 |
Cash used in operations | (11,255) | (8,409) | (14,814) |
Taxes received | 1,954 | 1,920 | 1,364 |
Net cash used in operating activities | (9,301) | (6,489) | (13,450) |
Investing activities | |||
Purchases of property, plant and equipment | (209) | (310) | (244) |
Proceeds from disposal of fixed assets | 143 | 25 | |
Purchase of intangibles | (9) | ||
Long term deposit for guarantee for Government loan | 2,639 | (2,549) | |
Disposal of discontinued operation, net of cash disposed of | 9,259 | ||
Deposit paid in connection with disposed subsidiary | (947) | ||
Interest received | 1 | 8 | 2 |
Net cash generated/(used in) from investing activities | 2,574 | (3,807) | 9,042 |
Financing activities | |||
Interest paid | (34) | (30) | (587) |
Receipts from sub-lessors | 45 | 107 | |
Amounts paid on lease liabilities (2018 & 2017: Amounts paid on finance leases) | (258) | (450) | (64) |
Repayment of Government grants | (229) | ||
Repayment of borrowings | (577) | (5,821) | |
Proceeds from bank borrowings | |||
(Repayment)/Proceeds from Government loan | (6,182) | 4,436 | |
Proceeds from Government subsidy | 1,139 | ||
Share issues including warrants, net of costs | 9,742 | 14,108 | |
Net cash generated from/(used in) financing activities | 3,084 | 18,733 | (6,472) |
Net (decrease)/increase in cash and cash equivalents | (3,643) | 8,437 | (10,880) |
Cash and cash equivalents at beginning of year | 10,928 | 2,343 | 13,204 |
Exchange gains/(losses) on cash and cash equivalents | 261 | 148 | 19 |
Cash and cash equivalents at end of year | £ 7,546 | £ 10,928 | £ 2,343 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - GBP (£) £ in Thousands | Share capital [member] | Share premium [member] | Merger reserve [member] | Warrant reserve [member] | Foreign exchange reserve [member] | Accumulated deficit [member] | Total |
Beginning balance at Dec. 31, 2017 | £ 1,003 | £ 52,939 | £ 53,003 | £ 2,385 | £ (74,654) | £ 34,676 | |
Changes in equity [Roll Forward] | |||||||
Loss for the year | (15,030) | (15,030) | |||||
Reclassification of foreign exchange on disposal | (3,842) | (3,842) | |||||
Foreign exchange translation | 1,156 | 1,156 | |||||
Total comprehensive loss | (2,686) | (15,030) | (17,716) | ||||
Transactions with owners | |||||||
Share-based payment credit | (36) | (36) | |||||
Total contribution by and distributions to owners | (36) | (36) | |||||
Ending balance at Dec. 31, 2018 | 1,003 | 52,939 | 53,003 | (301) | (89,720) | 16,924 | |
Changes in equity [Roll Forward] | |||||||
Loss for the year | (10,085) | (10,085) | |||||
Reclassification of foreign exchange on disposal | |||||||
Foreign exchange translation | (207) | (207) | |||||
Total comprehensive loss | (207) | (10,085) | (10,292) | ||||
Transactions with owners | |||||||
Shares issued on 26 February 2019 - note 16 | 17 | 13,388 | 13,405 | ||||
Costs associated with share issue on 26 February 2019 - note 16 | (1,120) | (1,120) | |||||
Shares issued on 29 October 2019 - note 16 | 3 | 1,211 | 1,214 | ||||
Costs associated with share issue on 29 October 2019 - note 16 | (539) | (539) | |||||
Share-based payment credit | (34) | (34) | |||||
Shares issued as deferred consideration for business combination | |||||||
Total contribution by and distributions to owners | 20 | 12,940 | (34) | 12,926 | |||
Ending balance at Dec. 31, 2019 | 1,023 | 65,879 | 53,003 | (508) | (99,839) | 19,558 | |
Changes in equity [Roll Forward] | |||||||
Loss for the year | (22,189) | (22,189) | |||||
Reclassification of foreign exchange on disposal | |||||||
Foreign exchange translation | 508 | 508 | |||||
Total comprehensive loss | (508) | (22,189) | (21,681) | ||||
Transactions with owners | |||||||
Shares issued on 18 May 2020 - note 16 | 16 | 2,527 | 720 | 3,263 | |||
Costs associated with share issue on 18 May 2020 - note 16 | (544) | (544) | |||||
Shares issued on 27 July 2020 - note 16 | 21 | 5,729 | 5,750 | ||||
Costs associated with share issue on 27 July 2020 - note 16 | (489) | (489) | |||||
Shares issued on 19 August 2020 - note 16 | 3 | 1,278 | 1,281 | ||||
Costs associated with share issue on 19 August 2020 - note 16 | (16) | (16) | |||||
Share-based payment credit | (404) | (404) | |||||
Total contribution by and distributions to owners | 40 | 8,485 | 720 | (404) | 8,841 | ||
Ending balance at Dec. 31, 2020 | £ 1,063 | £ 74,364 | £ 53,003 | £ 720 | £ (122,432) | £ 6,718 |
1 Accounting policies
1 Accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | |
Accounting policies | 1 Accounting policies General information Midatech Pharma plc (the ‘Company’) is a company registered and domiciled in England and Wales. The Company was incorporated on 12 September 2014. The Company is a public limited company, which has been listed on the Alternative Investment Market (‘AIM’), which is a submarket of the London Stock Exchange, since 8 December 2014. In addition, since 4 December 2015 the Company has American Depository Receipts (‘ADRs’) registered with the US Securities and Exchange Commission (‘SEC’) and is listed on the NASDAQ Capital Market. The financial statements were approved and authorised for issue by the Board of Directors on 29 April 2021. Basis of preparation The Group was formed on 31 October 2014 when Midatech Pharma plc entered into an agreement to acquire the entire share capital of Midatech Limited and its wholly owned subsidiaries through the issue equivalent of shares in the Company which took place on 13 November 2014. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the periods presented. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This changed from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. Comparative numbers of shares and share options/warrants and related exercise/issue prices and earnings per share reflect the impact of the March 2020 share consolidation The consolidated financial statements have been prepared on a historical cost basis, except for the following item (refer to individual accounting policies for details): - Financial instruments – fair value through profit or loss. Adoption of new and revised standards New standards, interpretations and amendments effective from 1 January 2020 New standards adopted by the Group in the annual financial statements for the year ended 31 December 2020 are: • Definition of a Business (Amendments to IFRS 3); • Interest Rate Benchmark Reform – IBOR ‘phase 2’ (Amendments to IFRS 9, IAS 39 and IFRS 7); and • COVID-19-Related Rent Concessions (Amendments to IFRS 16). The adoption of the above new standards has not had a material impact on the financial statements during the year ended 31 December 2020. New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2022: • Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37); • Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16); • Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS16 and IAS 41); and • References to Conceptual Framework (Amendments to IFRS 3). In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments were originally effective for annual reporting periods beginning on or after 1 January 2022.However, in May 2020, the effective date was deferred to annual reporting periods beginning on or after 1 January 2023. These new accounting standards and amendments are not expected to have a material impact on the Group. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the group. Basis for consolidation The Group financial statements consolidate those of the parent company and all of its subsidiaries. The parent controls a subsidiary if it has power over the investee to significantly direct the activities, exposure, or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. All subsidiaries have a reporting date of 31 December. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. The loss and other comprehensive income of Midatech Pharma US, Inc. (“MPUS”), formerly DARA Biosciences, Inc., acquired in December 2015 is recognised from the effective date of acquisition i.e. 4 December 2015 through to the date of sale on 1 November 2018. Similarly, the loss and other comprehensive income of Zuplenz®, acquired as a business by Midatech Pharma plc, is recognised from 24 December 2015 until 31 October 2018 (up to the formal completion of the sale of MPUS on 1 November 2018). Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the re-measurement to fair value less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations. The consolidated financial statements consist of the results of the following entities: Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) In liquidation PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Dissolved - 2020 Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 November 2018) Trading company Dara Therapeutics, Inc. (until 1 November 2018) Dormant Going concern The Group and Company are subject to a number of risks similar to those of other development and early-commercial stage pharmaceutical companies. These risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing and obtaining related regulatory approvals of our pipeline products. Ultimately, the attainment of profitable operations is dependent on future uncertain events which include obtaining adequate financing to fulfill our commercial and development activities and generating a level of revenue adequate to support our cost structure. We have experienced net losses and significant cash outflows from cash used in operating activities over the past years we develop our portfolio. For the year ended December 31, 2020, the Company incurred a consolidated loss from operations of £22.2million and negative cash flows from operations of £9.3million. As of December 31, 2020, we had an accumulated deficit of £122.4million. Our future viability is dependent on our ability to generate cash from operating activities, to raise additional capital to finance our operations and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue our business strategies. Our Group's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2020, we had cash and cash equivalents of £7.5million. We believe we currently have enough cash to fund our planned operations into the fourth quarter of 2021. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for our next three years, including the period twelve months from the date of the approval of the financial statements. These forecasts show that further financing will be required during the course of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of and for the year ended December 31, 2020 with respect to this uncertainty. In addition, the global spread of pandemic novel coronavirus, COVID-19, places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people have caused, and may in the future cause, delays to some of our plans. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. It is not currently possible to quantify the impact of COVID-19 and resultant delays on the Company until it becomes clear that the global crisis has abated and a normalization of the business environment can be foreseen with confidence In addition to utilizing the existing cash reserves, as part of our strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets or technologies or the sale of the Company. After considering the uncertainties, we considered it appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. Revenue Revenue is accounted for in line with principles of IFRS 15 ‘Revenue from contracts with customers’ Revenue from licensing agreements The Group entered into a Licence Agreement during 2019. The licence consists of two distinct performance conditions, which is the grant of the license to use of its intellectual property (“IP”) and the supply of Product. After the Company has granted the license, and the Product is granted applicable marketing authorizations in the EU, the US, or the UK, France, Germany or Switzerland and China, there are no further obligations to participate in, or provide additional services to its customer. The transaction price for the grant of the license to use the Company’s IP comprises of fixed and variable payment streams and the grant of the license is considered to be a right to use IP. Upfront fees earned, are recognised as revenue at a point in time, upon transfer of control over the license to the licensee and the grant of the applicable marketing authorisation by the relevant statutory authority. Revenue from variable consideration, which is contingent on achievements of future milestones is recognised as revenue when it is highly probable the revenue will not reverse, that is when the underlying contingencies have been resolved. For future royalty payments associated with a license, the Company applies the IFRS 15 exception for sales-based royalties and recognises the revenue only when the subsequent sale occurs. Supply of Goods Revenue from sales of goods to customer are recognised when all performance obligations are met. These criteria are considered to be met when the goods are delivered to the customer. Revenue represents the full list price of products shipped to wholesalers and other customers less product returns, discounts, rebates and other incentives based on the sales price. Supply of Services Revenue from the supply of services is subject to specific agreement. This is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. Milestones The Group’s revenue also include milestone income from research and development contracts. Milestone income is recognised as revenue in the accounting period in which the milestones are achieved. Milestones are agreed on a project by project basis and will be evidenced by set deliverables. Grant revenue Where grant income is received, which is not a direct re-imbursement of related costs and at the point at which the conditions have been met for recognition as income, this has been shown within grant revenue. Government grants and government loans Where government grants are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as the expenditure towards which they are intended to contribute. The Group receives government loans that have a below-market rate of interest. These loans are recognised and measured in accordance with IFRS 9. The benefit of the below-market rate of interest is measured as the difference between the initial carrying value of the loan discounted at a market rate of interest and the proceeds received. The difference is held within deferred revenue as a government grant and is released as a credit to grant income or to research and development expense in line with the expenditure to which it relates. In a situation where the proceeds were invested in plant and equipment, the deferred revenue is credited to research and development within the income statement in line with the depreciation of the acquired asset. Business combinations and externally acquired intangible assets Business combinations are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the acquisition date, being: the fair value of the consideration transferred to the seller, plus; the amount of any non-controlling interest in the acquiree, plus; if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the acquisition date, less; the fair value of the net identifiable assets acquired and assumed liabilities. Acquisition costs incurred are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability, will be recognised either as a profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it is not re-measured. An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable or when it arises from contractual or other legal rights. Externally acquired intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives where they are in use. The amortisation expense is included within the distribution costs, sales and marketing in the consolidated statement of comprehensive income. Goodwill is stated at cost less any accumulated impairment losses. The amounts ascribed to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques (see section related to critical estimates and judgements below). In-process research and development (‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development costs below are not met. IPRD is subject to annual impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development capitalisation as set out below. As per IFRS 3, once the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life. The product and marketing rights recognised in 2017 related to various licenses, the Group held via its US subsidiary. These rights were disposed of with the sale of the subsidiary. The significant intangibles recognised by the Group and their useful economic lives are as follows: Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years Product and marketing rights – Between 2 and 12 years The useful economic life of IPRD will be determined when the in-process research projects are completed. Amortisation of product and marketing rights ceased in June 2018 when the US entity was classified as held for sale. Internally generated intangible assets (development costs) Expenditure on the research phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied: completion of the asset is technically feasible so that it will be available for use or sale; the Group intends to complete the asset and use or sell it; the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and the expenditure attributable to the asset during its development can be measured reliably. Judgement is applied when deciding whether the recognition criteria are met. Judgements are based on the information available. In addition, all internal activities related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country. Development expenditure not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive Income as incurred. No projects have yet reached the point of capitalisation. Impairment of non-financial assets Assets that have an indefinite useful life, for example goodwill, or intangible assets not ready for use, such as IPRD, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. An impairment charge of £12.4m has been recognised in 2020 within continuing operations. This charge is split £9.3m against the IPRD and £2.3m of goodwill, both of these relate to Midatech Pharma (Wales) Ltd cash generating unit and £0.8m against acquired IRPD on MTX110. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). After the disposal of the US operation on 1 November 2018, the Group at 31 December 2020 had only one cash generating unit (2019:one, 2018: one), as set out in note 13. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of impairment at each reporting date. Impairment charges are included in profit or loss, except, where applicable, to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed. Patents and trademarks The costs incurred in establishing patents and trademarks are either expensed in accordance with the corresponding treatment of the development expenditure for the product to which they relate or capitalised if the development expenditure to which they relate has reached the point of capitalisation as an intangible asset. Joint arrangements The Group is a party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries. The Group classifies its interests in joint arrangements as either: Joint ventures: where the Group has rights to only the net assets of the joint arrangement; or Joint operations: where the Group has both the rights to assets and obligations for the liabilities of the joint arrangement. In assessing the classification of interests in joint arrangements, the Group considers: the structure of the joint arrangement; the legal form of joint arrangements structured through a separate vehicle; the contractual terms of the joint arrangement agreement; and any other facts and circumstances (including any other contractual arrangements). The results and assets and liabilities of joint ventures are incorporated in the financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in a joint venture is recognised initially in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the joint venture. When the Group’s share of losses of a joint venture exceeds the Group’s interest in that joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture. Foreign currency Transactions entered into by subsidiary entities in a currency other than the currency of the primary economic environment, in which they operate, are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. The presentational currency of the Group is Pounds Sterling, and the functional currency is also Pounds Sterling. Foreign subsidiaries use the local currencies of the country where the operate. On consolidation, the results of overseas operations are translated into Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in the profit or loss of Group entities on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation. On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the gain or loss on disposal. Financial assets and liabilities Assets at amortised cost The Group does not have any financial assets which it would classify as fair value through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. For impairment provisions, the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk and ageing The expected loss rates are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss rates are then adjusted for current and forward-looking information on macroeconomic factors. The Group’s assets at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. Cash and cash equivalents include cash in hand, deposits held at call with original maturities of three months or less. Financial liabilities The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22. Other financial liabilities include the following items: Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development expenditure or grant income in line with when the asset or expenditure is recognised in the income statement. Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. Share capital Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group has two classes of share in existence: ordinary shares of £0.001 each are classified as equity instruments; deferred shares of £1 each are classified as equity instruments. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company. Comparative figures in these financial statements reflect the impact of the share consolidation. Retirement benefits: defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate. Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Share-based payments The Group operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: including any market performance conditions (including the share price); excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Where vesting conditions are accelerated on the occurrence of a specified event, such as a change in control or initial public offering, such remaining unvested charge is accelerated to the income statement. In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grant date fair value is estimated for the purposes of recognising the expense during the period between service commencement period and grant date. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity. When the options are exercised, the Company issues new shares. The proceeds received net |
2 Critical accounting estimates
2 Critical accounting estimates and judgements | 12 Months Ended |
Dec. 31, 2020 | |
Critical Accounting Estimates And Judgements | |
Critical accounting estimates and judgements | 2 Critical accounting estimates and judgements The preparation of these consolidated financial statements requires the Group to make estimates, assumptions and judgments that can have a significant impact on the reported amounts of assets and liabilities, revenue and expenses and related disclosure of contingent assets and liabilities, at the respective dates of our financial statements. The Group bases its estimates, assumptions and judgments on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. Management evaluates estimates, assumptions and judgments on a regular basis and makes changes accordingly, and discusses critical accounting estimates with the board of Directors. The following are considered to be critical accounting estimates: Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangibles not yet ready for use are tested for impairment at the cash generating unit level on an annual basis at the year end and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a cash generating unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of cash generating units, assignment of assets and liabilities to such units, assignment of goodwill to such units and determination of the fair value of a unit and for intangible assets not yet ready for use, the fair value of the asset. The fair value of each cash generating unit or asset is estimated using the income approach, on a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, including for revenues and development costs, estimation of the long term rate of growth for the business, estimation of the useful life over which cash flows will occur and determination of our weighted-average cost of capital. The carrying value of goodwill was £Nil (2019: £2.3m; 2018:£2.3m) and intangibles not yet ready for use was £Nil (2019:£10.1m; 2018:£10.1m) as at 31 December 2020 (note 12). The estimates used to calculate the fair value of a cash generating unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each such unit. As a result of the Strategic Review undertaken by the Group in March 2020 as set out in the Chief Executives Review on page ● an impairment charge of £2.3m has been recognised against goodwill in the year ended 31 December 2020 (2019:£Nil; 2018:£Nil) and an impairment charge against the IPRD of the Midatech Pharma (Wales) Ltd cash generating unit of £9.3m (2019:£Nil; 2018: £Nil). As a result of the purported termination of our license to panobinostat by Secura Bio in June 2020 there is an impairment charge of £0.8m against the acquired IPRD in relation to MTX110. See note 12 and 13. Share-based payments The Group accounts for share-based payment transactions for employees in accordance with IFRS 2 Share-based Payment, which requires the measurement of the cost of employee services received in exchange for the options on our ordinary shares, based on the fair value of the award on the grant date. The Directors selected the Black-Scholes-Merton option pricing model as the most appropriate method for determining the estimated fair value of our share-based awards without market conditions. For performance-based options that include vesting conditions relating to the market performance of our ordinary shares, a Monte Carlo pricing model was used in order to reflect the valuation impact of price hurdles that have to be met as conditions to vesting. The resulting cost of an equity incentive award is recognised as expense over the requisite service period of the award, which is usually the vesting period. Compensation expense is recognised over the vesting period using the straight-line method and classified in the consolidated statements of comprehensive income. The assumptions used for estimating fair value for share-based payment transactions are disclosed in note 27 to our consolidated financial statements and are estimated as follows: · volatility is estimated based on the average annualised volatility of a number of publicly traded peer companies in the biotech sector; · the estimated life of the option is estimated to be until the first exercise period, which is typically the month after the option vests; and · the dividend return is estimated by reference to our historical dividend payments. Currently, this is estimated to be zero as no dividend has been paid in the prior periods. Financial liabilities Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22. The following are considered to be critical accounting judgments: Revenue Supply of Services There are significant management judgements and estimates involved in the recognition of revenue from the supply of services. Revenue on services is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. Income taxes Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and the level of future taxable profits together with future tax planning strategies. In 2020, there were approximately £63.2m of gross unutilised tax losses carried forward (2019: £49.6m; 2018: £40.7m). No deferred tax asset has been provided in respect of these losses as there was insufficient evidence to support their recoverability in future periods. Research and development costs Research and development costs are charged to expense as incurred and are typically made up of salaries and benefits, clinical and preclinical activities, drug development and manufacturing costs, and third-party service fees, including for clinical research organizations and investigative sites. Costs for certain development activities, such as clinical trials, are periodically recognised as intangible assets based on an evaluation of the progress to completion of specific tasks using data such as patient enrolment, clinical site activations, or information provided by vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the financial statements as prepaid or accrued expenses. Leases IFRS 16 defines the lease term as the non-cancellable period of a lease together with the options to extend or terminate a lease, if the lessee were reasonably certain to exercise that option. This will take into account the length of time remaining before the option is exercisable, current trading, future trading forecasts as to the ongoing profitability of the organisation and the level and type of planned future capital investment. The judgement is reassessed at each reporting period. A reassessment of the remaining life of the lease could result in a recalculation of the lease liability and a material adjustment to the associated balances. During 2020 following the closure of Midatech Pharma (Espana) SL and the termination of a property lease occupied by the Company a profit on disposal has been recognised in the financial statements of £109,000. During 2019 Management considered the appropriate life of a new property lease entered into in Spain. The lease was for an initial period of 5 years, however the lease allowed the Group to break the lease at any-time with one-month notice, provided it returned the property to its original condition. At 31 December 2019, Management assessed it was reasonably certain the expected life of the lease would be 5 years. The discount rate used in the calculation of the lease liability involves estimation. The discount rate used is the incremental borrowing rate. This rates represents the rate the Group would have had to pay to borrow, over a similar term and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. Discontinued Operations Under the terms of the Sale Agreement the Group agreed to indemnify the Purchaser against, inter alia, any liability related to any prescription drug user fee amounts owed to the United States Food and Drug Administration (“FDA”) under the Prescription Drug Fee User Act (“PDUFA”) by MPUS for the United States government’s fiscal year ended 30 September 2018. MPUS had successfully obtained waivers for user fees for all prior fiscal periods in which it was liable under PDUFA and entered into the Sale Agreement with the Purchaser confident that a further waiver would be obtained. However, during 2019 MPUS sought approval from the FDA for a filing relating to one of its commercial products and was informed by the FDA that the approval would not be forthcoming whilst the PDUFA fee remained unpaid. Consequently, MPUS paid the PDUFA fee of £0.95m and then, in accordance with the terms of the SPA, Midatech deposited the same amount with MPUS, pending completion of the waiver application process. At 30 June 2019 Management considered the amount recoverable from MPUS, this was based on the waiver application process being on-going and the historical success MPUS have had in obtaining the waiver. At 31 December 2019 Management reconsidered the recoverability of the sum paid under the warranty, and although the waiver process was still on-going, Management concluded, based on third party advice, that the probability of successfully achieving the waiver had diminished and therefore took the decision to expense the cost of the warranty claim in the second half of 2019. During 2020 Fortovia Theraputics Inc (formerly MPUS) filed for bankruptcy. Going Concern We have experienced net losses and significant cash outflows from cash used in operating activities over the past years we develop our portfolio. For the year ended December 31, 2020, the Company incurred a consolidated loss from operations of £22.2million and negative cash flows from operations of £9.3million. As of December 31, 2020, we had an accumulated deficit of £122.4million. Our future viability is dependent on our ability to generate cash from operating activities, to raise additional capital to finance our operations and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue our business strategies. Our Group's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2020, we had cash and cash equivalents of £7.5million. We believe we currently have enough cash to fund our planned operations into the fourth quarter of 2021. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for our next three years, including the period twelve months from the date of the approval of the financial statements. These forecasts show that further financing will be required during the course of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. In addition, the global spread of pandemic novel coronavirus, COVID-19, places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people have caused, and may in the future cause, delays to some of our plans. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. It is not currently possible to quantify the impact of COVID-19 and resultant delays on the Company until it becomes clear that the global crisis has abated and a normalization of the business environment can be foreseen with confidence In addition to utilizing the existing cash reserves, as part of our strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets or technologies or the sale of the Company. After considering the uncertainties, we considered it appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. |
3 Segment Information
3 Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Segment Information | 3 Segment Information Revenue from contracts with customers Geographical analysis of revenue by destination of customer 2020 £’000 2019 £’000 2018 £’000 Revenue from continuing operations: United Kingdom 4 197 149 Rest of Europe 114 55 – Rest of the World 62 60 – 180 312 149 Revenue from discontinued operations United States – – 3,882 All revenue from continuing operations came from the sale of services in 2020, 2019 and 2018. In 2020, all revenue from continuing operations came from 3customers (2019: 3 customers; 2018: 1 customer). Within revenue from discontinued operations for 2018, reported in the consolidated statement of comprehensive income under loss from discontinued operations, four customers each accounted for at least 10% of revenue from discontinued operations: 2020 £’000 2019 £’000 2018 £’000 Customer A 64 % 63 % 100 % Customer B 34 % 19 % - Customer C 2 % 18 % - Following the disposal of the US commercial business in 2018, the Group contains one reportable operating segment, Pipeline Research and Development (‘Pipeline R&D’). This segment seeks to develop products using the Group’s nanomedicine and sustained release technology platforms. The accounting policies of the reportable segments are consistent with the Group’s accounting policies described in note 1. Segment results represent the result of each segment without the allocation of head office expenses, interest expense, interest income and tax. No measures of segment assets and segment liabilities are reported to the Group’s Board of Directors in order to assess performance and allocate resources. There is no intersegment activity and all revenue is generated from external customers. Both the UK and Spanish entities meet the aggregation criteria and have therefore been presented as a single reportable segment under Pipeline R&D. The research and development activities involve the discovery and development of pharmaceutical products in the field of nanomedicine and sustained release technology. The US operating company was engaged in the sale and marketing of cancer supportive care products and was reported historically under the Commercial segment. In the following segmented results tables, depreciation and amortisation allocated to research and development costs, and administrative costs in the consolidated statements of comprehensive income, are presented separately. Segmented results for the year ended 31 December 2020 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 180 - 180 Grant revenue 163 - 163 Total revenue 343 - 343 Other income 12 - 12 Cost of sales - - - Research and development costs (4,886 ) - (4,886 ) Distribution costs, sales and marketing (6 ) - (6 ) Administrative costs (4,917 ) - (4,917 ) Depreciation (1,207 ) - (1,207 ) Amortisation (10 ) - (10 ) Impairment (12,369 ) (12,369 ) Loss from operations (23,040 ) - (23,040 ) Finance income 1 - 1 Finance expense (431 ) - (431 ) Loss before tax (23,470 ) - (23,470 ) Taxation 1,281 - 1,281 Loss for the year (22,189 ) - (22,189 ) Loss from continuing operations (22,189 ) Loss from discontinued operations - Segmented results for the year ended 31 December 2019 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 312 – 312 Grant revenue 362 – 362 Total revenue 674 – 674 Other income 15 – 15 Cost of sales – – - Research and development costs (6,624 ) – (6,624 ) Distribution costs, sales and marketing (323 ) – (323 ) Administrative costs (3,775 ) – (3,775 ) Loss from discontinued operations, net of tax – (947 ) (947 ) Depreciation (1,282 ) – (1,282 ) Amortisation (3 ) – (3 ) Loss from operations (11,318 ) (947 ) (12,265 ) Finance income 492 – 492 Finance expense (97 ) – (97 ) Loss before tax (10,923 ) (947 ) (11,870 ) Taxation 1,785 – 1,785 Loss for the year (9,138 ) (947 ) (10,085 ) Loss from continuing operations (9,138 ) Loss from discontinued operations (947 ) Segmented results for the year ended 31 December 2018 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 149 3,882 4,031 Grant revenue 1,789 – 1,789 Total revenue 1,938 3,882 5,820 Cost of sales – (1,286 ) (1,286 ) Research and development costs (8,555 ) (283 ) (8,838 ) Distribution costs, sales and marketing – (4,357 ) (4,357 ) Administrative costs (4,087 ) (872 ) (4,959 ) Loss on disposal of discontinued operations – (1,407 ) (1,407 ) Depreciation (1,011 ) (5 ) (1,016 ) Amortisation (100 ) (334 ) (434 ) Loss from operations (11,815 ) (4,662 ) (16,477 ) Finance income 2 – 2 Finance expense (587 ) – (587 ) Loss before tax (12,400 ) (4,662 ) (17,062 ) Taxation 2,032 – 2,032 Loss for the year (10,368 ) (4,662 ) (15,030 ) Loss from continuing operations (10,368 ) Loss from discontinued operations (4,662 ) All material additions to non-current assets in 2020, 2019 and 2018 were in the Pipeline R&D segment. Non-current assets by location of assets 2020 £’000 2019 £’000 2018 £’000 United Kingdom 542 12,775 12,966 Spain 4,383 1,860 542 17,158 14,826 |
4 Discontinued operations
4 Discontinued operations | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Discontinued operations | 4 Discontinued operations During 2018 the group made the decision to sell its Commercial business based in the US. The sale completed on 1 November 2018 to Barings LLC, a member of the MassMutual Financial Group, for total consideration of up to $19m. This included $6m of consideration contingent payable on the achievement of various net revenue milestones for the MPUS business for the financial years 2018 and 2019. MPUS did not achieve the net revenue milestones in either 2018 or 2019, as a result no contingent consideration was received during 2019. During 2019 a claim was made by MPUS under the warranties provided by Midatech under the disposal agreement, see note 2. The statement of cash flows includes the following amounts relating to discontinued operations: 2020 £’000 2019 £’000 2018 £’000 Cash consideration received – – 9,350 Other consideration received – – – Total consideration received – – 9,350 Cash disposed of – – (91 ) Net cash inflow on disposal of discontinued operation – – 9,259 Net assets disposed (other than cash): – – 3 Property, plant and equipment – – 15,662 Intangibles – – 948 Inventory – – 629 Trade and other payables – – (2,734 ) Total net assets disposed of (other than cash) – – (14,508 ) Loss on disposal of discontinued operation before and after tax – – (5,249 ) Foreign exchange gain realised on disposal – – 3,842 Loss on disposal – – (1,407 ) The post-tax loss on disposal of discontinued operations was determined as follows: Result of discontinued operations 2020 £’000 2019 £’000 2018 £’000 Revenue – – 3,882 Expenses other than finance costs – (947 ) (7,137 ) Finance costs – – – Impairment – – – Loss from discontinued operations before tax – (947 ) (3,255 ) Taxation – – – Loss on disposal of discontinued operations – – (1,407 ) Loss for the year from discontinued operations after tax – (947 ) (4,662 ) Statement of cash flows 2020 £’000 2019 £’000 2018 £’000 The statement of cash flows includes the following amounts relating to Operating activities – – (5,368 ) Investing activities – (947 ) – Financing activities – – (7 ) Net cash flow from discontinued operations – (947 ) (5,375 ) |
5 Loss from operations
5 Loss from operations | 12 Months Ended |
Dec. 31, 2020 | |
Loss From Operations | |
Loss from operations | 5 Loss from operations 2020 £’000 2019 £’000 2018 £’000 Loss from operations is stated after charging/(crediting): Changes in inventories of finished goods and work in progress – – (976 ) Depreciation of property, plant and equipment – From continuing operations 1,089 979 1,011 – From discontinued operations – – 5 Depreciation of right of use asset – From continuing operations 118 303 – – From discontinued operations – – – Amortisation of intangible assets – product and marketing rights – From continuing operations 10 3 100 – From discontinued operations – – 334 Impairment of intangible assets 12,369 – – Fees payable to the Company’s auditor for the audit of the parent 87 110 111 Fees payable to the Company’s subsidiary auditors for the audits of the 43 48 143 Fees payable to the Company’s auditor for: – Other services 7 66 83 Fees payable to the Company’s previous auditor for the audit of the 15 – – Fees payable to the Company’s previous auditor for: - Other services 171 – – Operating lease expense: – Property – – 386 – Plant and machinery – – – Arrangement/penalty fees for loan facility – – 469 Foreign exchange(gain)/loss 96 131 212 Profit/(Loss) (226 ) – 165 Equity settled share-based payment (404 ) (34 ) (36 ) Amortisation of product and marketing rights are included with distribution costs, sales and marketing expenses. Amortisation ceased when the assets were reclassified as held for sale on 30 June 2018 and were sold on 1 November 2018. |
6 Staff costs
6 Staff costs | 12 Months Ended |
Dec. 31, 2020 | |
Staff Costs | |
Staff costs | 6 Staff costs Staff costs (including Directors), for continuing and discontinued operations, comprise: 2020 £’000 2019 £’000 2018 £’000 Wages and salaries 2,727 2,762 5,393 Defined contribution pension cost (note 26 75 90 149 Social security contributions and similar taxes 397 565 639 Share-based payment (404 ) (34 ) (36 ) 2,795 3,383 6,145 Continuing operations 2,795 3,383 4,352 Discontinued operations - – 1,793 2,795 3,383 6,145 Employee numbers The average number of staff employed by the Group during the financial year, for continuing and discontinued operations, amounted to: 2020 2019 2018 Research and development 31 52 63 General and administration 9 13 16 Sales and marketing - – 6 40 65 85 Key management personnel compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Company and the Chief Operating Officer. 2020 £’000 2019 £’000 2018 £’000 Wages and salaries 394 656 900 Defined contribution pension cost 24 42 39 Payments made to third parties 63 82 142 Social security contributions and similar taxes 29 72 77 Benefits in kind 16 2 3 526 854 1,161 Share-based payment (472 ) (58 ) (92 ) 54 796 1,069 Emoluments disclosed above include the following amounts in respect of the highest paid Director. 2020 £’000 2019 £’000 2018 £’000 Salary 175 266 110 Total pension and other post-employment benefit costs 17 22 4 Benefits in kind 1 1 1 Termination benefits - - 99 193 289 214 None of the Directors have exercised share options during the year (2019: nil, 2018: nil). During the year 2 Directors (2019:3; 2018: 3) participated in a defined contribution pension scheme. |
7 Finance income and expense
7 Finance income and expense | 12 Months Ended |
Dec. 31, 2020 | |
Finance Income And Expense | |
Finance income and expense | 7 Finance income and expense 2020 £’000 2019 £’000 2018 £’000 Finance income Interest received on bank deposits 1 8 2 Gain on equity settled derivative financial liability – 484 – Total finance income 1 492 2 2020 £’000 2019 £’000 2018 £’000 Finance expense Bank loans – – 582 Interest expense on lease liabilities 20 30 5 Other loans 14 67 – Loss on equity settled derivative financial liability 397 – – Total finance expense 431 97 587 The gain/(loss) on the equity settled derivative financial liability in 2020 and 2019 arose as a result of the movement in share price ( note 21 |
8 Taxation
8 Taxation | 12 Months Ended |
Dec. 31, 2020 | |
Taxation Abstract | |
Taxation | 8 Taxation 2020 £’000 2019 £’000 2018 £’000 Current tax credit Current tax credited to the income statement 1,144 1,782 1,952 Taxation payable in respect of foreign subsidiary (21 ) – (67 ) Adjustment in respect of prior year 158 3 128 1,281 1,785 2,013 Deferred tax credit Reversal of temporary differences – – 19 Total tax credit 1,281 1,785 2,032 There was no tax charge relating to discontinued operations for 2020, 2019 and 2018. The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows: 2020 £’000 2019 £’000 2018 £’000 Loss before tax (23,470 ) (11,870 ) (17,062 ) Expected tax credit based on the standard rate of United Kingdom (4,459 ) (2,255 ) (3,241 ) Expenses not deductible for tax purposes 596 1,087 2,492 Income not taxable (75 ) – – Unrelieved tax losses and other deductions – (114 ) – Adjustment in respect of prior period (158 ) (3 ) (129 ) Surrender of tax losses for R&D tax refund (491 ) (1,810 ) (1,955 ) Unrelieved tax losses and other deductions arising in the period – – (220 ) Foreign exchange differences – 1 (26 ) Deferred tax not recognised 3,306 1,309 1,047 Total tax credited to the income statement (1,281 ) (1,785 ) (2,032 ) The taxation credit arises on the enhanced research and development tax credits accrued for the respective periods. An adjustment has been recognised in 2020 in respect of the prior period of £158k, this is as a result of a more detailed review of cost classification prior to the submission of tax returns to HMRC in 2020. |
9 Loss per share
9 Loss per share | 12 Months Ended |
Dec. 31, 2020 | |
Loss Per Share | |
Loss per share | 9 Loss per share 2020 £’000 2019 £’000 2018 £’000 Numerator Loss used in basic EPS and diluted EPS: Continuing operations (22,189 ) (9,138 ) (10,368 ) Discontinued operations – (947 ) (4,662 ) Denominator Weighted average number of ordinary shares used in basic EPS: 42,839,961 18,330,588 3,056,303 Basic and diluted loss per share: Continuing operations – pence (52 )p (50 )p (339 )p Discontinued operations – pence – (5 )p (153 )p On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The comparative denominator has been calculated to reflect the share consolidation. The Group has made a loss in the current and previous years presented, and therefore the options and warrants are anti-dilutive. As a result, diluted earnings per share is presented on the same basis for all periods shown. |
10 Property, plant and equipmen
10 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 10 Property, plant and equipment Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Cost At 1 January 2018 252 2,112 342 3,669 – 6,375 Additions 4 106 40 353 – 503 Disposal (5 ) (229 ) – (401 ) – (635 ) Exchange differences 2 24 1 30 – 57 At 31 December 2018 253 2,013 383 3,651 – 6,300 Adoption of IFRS 16 Leases – – – – 395 395 Additions 4 137 23 223 822 1,209 Effect of modification to lease – – – – (82 ) (82 ) Exchange differences (9 ) (112 ) (3 ) (136 ) (11 ) (271 ) At 31 December 2019 248 2,038 403 3,738 1,124 7,551 Additions - 58 16 135 209 Effect of modification to lease (678 ) (678 ) Disposal (202 ) (2,184 ) (185 ) (2,323 ) (316 ) (5,210 ) Exchange differences 7 92 2 112 58 271 At 31 December 2020 53 4 236 1,662 188 2,143 Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Accumulated depreciation At 1 January 2018 196 1,238 192 2,220 – 3,846 Charge for the year 43 403 72 499 – 1,016 Disposals – (175 ) (3 ) (421 ) – (599 ) Exchange differences 2 19 4 28 – 53 At 31 December 2018 241 1,485 265 2,326 – 4,317 Charge for the year 2 400 70 507 303 1,282 Exchange differences (8 ) (91 ) (3 ) (93 ) (7 ) (202 ) At 31 December 2019 235 1,794 332 2,740 296 5,397 Charge for the year 9 310 50 720 118 1,207 Disposals (202 ) (2,183 ) (185 ) (2,300 ) (316 ) (5,186 ) Exchange differences 7 81 2 79 14 183 At 31 December 2020 49 2 199 1,239 112 1,601 Net book value At 31 December 2020 4 2 37 423 76 542 At 31 December 2019 13 244 71 998 828 2,154 At 31 December 2018 12 528 118 1,325 – 1,983 |
11 Leases
11 Leases | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Leases | 11 Leases Right of Use Asset 2020 £’000 2019 £’000 At 1 January 828 395 Additions – 822 Effect of modification to lease terms (678 ) (82 ) Depreciation (118 ) (303 ) Exchange differences 44 (4 ) At 31 December 76 828 Lease Liabilities 2020 £’000 2019 £’000 At 1 January 907 546 Additions – 822 Effect of modification to lease terms (788 ) (82 ) Interest expenses 15 24 Lease payments (105 ) (391 ) Exchange differences 47 (12 ) At 31 December 76 907 During 2020 as a result of the closure of the Group’s operations in Spain two property leases were terminated early, this impacted both the right of use asset and the lease liability. Management considered the appropriate life of a lease in the UK in 2020 and 2019 and adjusted the right of use asset and lease liability accordingly. The group had commitments under non-cancellable operating leases as set out below, from 1 January 2019, the group has recognised right-of-use assets for these leases, exception for low value leases. Land and Buildings £’000 Other £’000 2020 Expiring In one year or less - - Expiring over one year - - - - 2019 Expiring In one year or less - - Expiring over one year - - - - 2018 Expiring In one year or less 383 1 Expiring over one year 189 4 572 5 Low value leases expensed in year: 2020 £’000 2019 £’000 Low value leases expensed 10 29 10 29 |
12 Intangible assets
12 Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill [abstract] | |
Intangible assets | 12 Intangible assets In-process £’000 Product and £’000 Goodwill £’000 IT/Website £’000 Total £’000 Cost At 1 January 2018 13,378 19,856 13,444 27 46,705 Disposals – (21,022 ) (11,808 ) – (32,830 ) Foreign exchange – 1,166 655 1 1,822 At 31 December 2018 13,378 – 2,291 28 15,697 Additions – – – 9 9 Foreign exchange – – – (2 ) (2 ) At 31 December 2019 13,378 – 2,291 35 15,704 Disposal – – – (36 ) (36 ) Foreign exchange – – – 1 1 At 31 December 2020 13,378 – 2,291 – 15,669 In-process research and development £’000 Product and marketing rights £’000 Goodwill £’000 IT/Website Costs £’000 Total £’000 Accumulated amortisation and At 1 January 2018 3,300 15,739 – 19 19,058 Amortisation charge for the year – 431 – 3 434 Disposal – (17,103 ) – – (17,103 ) Foreign exchange – 933 – 1 934 At 31 December 2018 3,300 – – 23 3,323 Amortisation charge for the year – – – 3 3 Foreign exchange – – – (1 ) (1 ) At 31 December 2019 3,300 – – 25 3,325 Amortisation charge for the year – – – 10 10 Disposal – – – (36 ) (36 ) Impairment 10,078 – 2,291 12,369 Foreign exchange – – – 1 1 At 31 December 2020 13,378 – 2,291 – 15,669 Net book value At 31 December 2020 – – – – – At 31 December 2019 10,078 – 2,291 10 12,379 At 31 December 2018 10,078 – 2,291 5 12,374 The individual intangible assets, excluding goodwill, which are material to the financial statements are: Carrying amount Remaining amortisation 2020 £’000 2019 £’000 2018 £’000 2020 (years) 2019 (years) 2018 (years) Midatech Pharma (Wales) Limited acquired IPRD – 9,300 9,300 n/a n/a in process n/a in process Midatech Pharma US, Inc., product and marketing – – – n/a n/a n/a Zuplenz® product and marketing rights – – – n/a n/a n/a MTX110 acquired IPRD – 778 778 n/a n/a in process n/a in process – 10,078 10,078 |
13 Impairment testing
13 Impairment testing | 12 Months Ended |
Dec. 31, 2020 | |
Impairment Testing | |
Impairment testing | 13 Impairment testing Midatech Pharma (Wales) Ltd Details of goodwill and IPRD allocated to the acquired cash generating unit and the valuation basis are as follows: Indefinite lived IPRD carrying amount Goodwill carrying amount Name 2020 £’000 2019 £’000 2018 £’000 2020 £’000 2019 £’000 2018 £’000 Valuation Basis CGU – Midatech Pharma (Wales) Ltd – 9,300 9,300 – 2,291 2,291 Value in use MTX110 acquired IPRD – 778 778 – – – – An impairment charge of £11.6m was recorded in 2021 in the assets of Midatech Pharma Wales Ltd (‘MPW’) CGU as a result of the Board’s decision on 31 March 2020 to terminate the MTD201.The impairment charge was £9.3m of IPRD and £2.3m acquired goodwill. In 2020 an impairment charge of £0.8m was recorded in relation to the acquire IPRD on MTX110. The impairment is as a result of the termination of a License Agreement between the Company and Secura Bio Inc. Pursuant to the License Agreement, Midatech Limited was granted a non-exclusive worldwide, sub-licenseable license to certain patents of Panobinostat, the active pharmaceutical ingredient of the Company’s development product MTX110. The assets of MPW were valued as at 31 December 2019 and 2018 and were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using (2019:12-13 year; 2018: 12–13 year), risk adjusted cash flow forecasts, in line with patent life, that have been approved by the Board. A period longer than 5 years was appropriate on the basis that the investment was long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used. The key assumptions used in the valuation model examining the MPW Ltd cash generating unit include the following: Assumptions 2020 2019 2018 Pre-tax discount rate n/a 18.4 % 17.7 % Cumulative probability of success of projects n/a 81 % 81 % The discount rate is an estimated market-based weighted average cost of capital for the MPW business, determined at the date of acquisition. Cumulative probability of success of projects is the product of the probability of success of each remaining major phase of development for each individual IPRD component. These phase probabilities were determined by management with reference to the risks associated with each remaining development stage. Sensitivity analysis If any one of the following changes were made to the above key assumptions, the carrying value and recoverable amount would be equal. Assumptions 2020 2019 2018 Pre-tax discount rate for all projects n/a increase to increase to Cumulative probability of success of project n/a 59 % 34 % |
14 Subsidiaries
14 Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries | |
Subsidiaries | 14 Subsidiaries The subsidiaries of Midatech Pharma plc, all of which are 100% owned, either directly or through subsidiaries where indicated, and have been included in these financial statements in accordance with the details set out in the basis of preparation and basis of consolidation note 1, are as follows: Name Registered Office Nature of Business Notes Midatech Limited Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA Trading company Midatech Pharma (España) SL Parque Tecnológico de Vizcaya, Edificio 800 Planta 2, Derio, 48160, Vizcaya, Spain In liquidation (a) PharMida AG c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland Dormant (a) (b) Midatech Pharma (Wales) Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA Trading Midatech Pharma PTY Dissolved - 2020 (c) Notes: (a) Wholly owned subsidiary of Midatech Limited. (b) PharMida AG became dormant in January 2016. (c) Midatech Pharma PTY was incorporated on 16 February 2015 and dissolved November 2020. |
15 Trade and other receivables
15 Trade and other receivables | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 15 Trade and other receivables 2020 £’000 2019 £’000 2018 £’000 Trade receivables 95 22 89 Prepayments 258 151 139 Other receivables 219 3,444 1,564 Total trade and other receivables 572 3,617 1,792 Less: non-current portion (rental deposit and on bond) – (2,625 ) (469 ) Current portion 572 992 1,323 Trade and other receivables do not contain any impaired assets. The Group does not hold any collateral as security and the maximum exposure to credit risk at the consolidated statement of financial position date is the fair value of each class of receivable. Book values approximate to fair value at 31 December 2020, 2019 and 2018. During 2019 a cash-backed guarantee was provided to the Spanish Government in relation to a loan provided to the Group under its Reindustrialization programme, see note 19 |
16 Cash and cash equivalents an
16 Cash and cash equivalents and cash flow supporting notes | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents And Cash Flow Supporting Notes | |
Cash and cash equivalents and cash flow supporting notes | 16 Cash and cash equivalents and cash flow supporting notes Cash and cash equivalents for purposes of the consolidated statement of cash flows comprises: 2020 £’000 2019 £’000 2018 £’000 Cash at bank available on demand 7,546 10,928 2,343 During 2020 and 2019, cash inflows arose from equity financing transactions, included within financing activities on the face of the cash flow statement. As part of the equity transaction in May 2020 warrants to the value of £1.0m (October 2019 : £1.1m) were issued as disclosed in note 21. 2020 £’000 2019 £’000 2018 £’000 Gross proceeds 10,792 15,767 – Transaction costs (1,050 ) (1,659 ) – 9,742 14,108 – The following changes in loans and borrowings arose as a result of financing activities during the year: Non-current £’000 Current £’000 Total £’000 At 1 January 2020 5,670 412 6,082 Cash flows (6,182 ) (258 ) (6,440 ) Non-cashflows: Foreign Exchange 252 23 275 Fair value changes 1,176 -– 1,176 Effect of modification to lease term – IFRS 16 (877 ) 89 (788 ) Loans and borrowings classified as non-current 31 December 2019 51 (51 ) – Interest accruing in period (30 ) (15 ) (45 ) At 31 December 2020 60 200 260 Non-current £’000 Current £’000 Total £’000 At 1 January 2019 884 368 1,252 Cash flows 5,575 (1,027 ) 4,548 Non-cashflows: Foreign Exchange (42 ) (29 ) (71 ) Fair value changes (1,139 ) – (1,139 ) Adoption of IFRS16 leases 163 383 546 Effect of modification to lease term – IFRS 16 – (82 ) (82 ) New leases 805 95 900 Loans and borrowings classified as non-current 31 December 2018 (685 ) 685 – Transfer to grant income – (14 ) (14 ) Interest accruing in period 108 34 142 At 31 December 2019 5,670 412 6,082 Non-current £’000 Current £’000 Total £’000 At 1 January 2018 6,185 361 6,546 Cash flows (5,580 ) (305 ) (5,885 ) Non- cashflows: Foreign Exchange 296 4 300 New leases 168 76 244 Loans and borrowings classified as non-current 31 December 2018 (232 ) 232 – Interest accruing in period 47 – 47 At 31 December 2018 884 368 1,252 |
17 Inventories
17 Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Inventories Abstract | |
Inventories | 17 Inventories 2020 £’000 2019 £’000 2018 £’000 Finished goods – – – Total inventories – – – There was no stock held at 31 December 2020. |
18 Trade and other payables
18 Trade and other payables | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables [abstract] | |
Trade and other payables | 18 Trade and other payables Current 2020 £’000 2019 £’000 2018 £’000 Trade payables 337 725 286 Other payables 26 13 – Accruals 768 1,765 1,025 Total financial liabilities, excluding loans and borrowings, 1,131 2,503 1,311 Tax and social security 31 86 347 Deferred revenue and government grants 68 1,905 445 Total trade and other payables 1,230 4,494 2,103 Book values approximate to fair value at 31 December 2020, 2019 and 2018. All current trade and other payables are payable within 3 months of the period end date shown above. Government grants The Group received development grant funding from the European Union under the Horizon 2020 ‘Nanofacturing’ project, a European Union funded programme to develop a scalable manufacturing platform for the production of nanopharmaceutical products. Midatech participated in this programme, along with seven other entities, through two Group companies, Midatech Pharma España SL (‘MPE’), which acted as project coordinator, and Midatech Limited (‘MTL’). The project commenced in February 2015 and completed in January 2019. During the year £nil (2019: £124k, 2018: £1,610k) revenue was recognised in relation to this project and the deferred revenue balance as at 31 December 2020 was £nil (2019: £nil, 2018: £124k). |
19 Borrowings
19 Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Borrowings | 19 Borrowings 2020 £’000 2019 £’000 2018 £’000 Current Bank loans – – 4 Lease liabilities 93 233 80 Government and research loans 107 179 284 Total 200 412 368 Non-current Bank loans – – – Lease liabilities 60 912 170 Government and research loans – 4,758 714 Total 60 5,670 884 During 2020 £4.8m government and research loans were repaid. Book values approximate to fair value at 31 December 2020, 2019 and 2018. Obligations under finance leases are secured by a fixed charge over the fixed assets to which they relate. Government loans in Spain In September 2019, Midatech Pharma España SL received €6.6m of funding awarded under the Spanish Government Reindustrialization programme. The Spanish Government required the Company to provide a €2.9 million cash-backed guarantee as security for the loan. The funds were used to support Midatech’s manufacturing scale-up facilities construction. As a result of the Group’s decision on 31 March 2020 to terminate further in-house development of MTD201 and the subsequent closure of its dedicated manufacturing facilities in Bilbao the Group repaid the loans during 2020. As a result of the early termination of the loan interest was charged at market rates up to the date of satisfaction of the loan. There remains one outstanding government loan which was received by Midatech Pharma España SL for the finance of research, technical innovation and the construction of their laboratory. The loan is a term loan which carries an interest rate below the market rate and is repayable in 2021. The Group made requests to the Spanish Government during 2020 to repay the loan early but were unsuccessful with their request, the loan was repaid in February 2021. During 2020 the Group repaid two government loans. The loans carried default interest rates in the event of scheduled repayments not being met. On initial recognition, the loans are discounted at a market rate of interest with the credit being classified as a grant within deferred revenue. The deferred grant revenue is released to the consolidated statement of comprehensive income within research and development costs in the period to which the expenditure is recognised. The deferred revenue element of the government loans is designated within note 18 as deferred revenue and Government grants, the gross contractual repayment of the loans is disclosed in note 22. As a result of the repayment of the loans these were fully amortised during 2020. Midcap Loan Facility In December 2017, Midatech Pharma entered into a secured loan agreement with Midcap Financial Trust (MidCap). The total facility was for $15m to be drawn down in three separate tranches. Interest was charged on the outstanding balance of the loan at an annual rate of LIBOR plus 7.5% subject to a LIBOR floor of 1.25%. MidCap was granted 247,881 warrants to purchase shares which was equal to 2% of the amount funded divided by the Exercise Price of £0.42. The Exercise Price was calculated as the average closing price for the 30-day period prior to the date of grant. The loan was secured against the assets of the Group. The first tranche of $7m was drawn down on 28 December 2017 and is disclosed under bank loans. This loan was repaid on 31 October 2018. |
20 Provisions
20 Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Provisions | 20 Provisions 2020 £’000 2019 £’000 2018 £’000 Opening provision at 1 January 97 165 – Provision (released)/recognised in the year (47 ) (68 ) 165 At 31 December 50 97 165 Less: non-current portion (50 ) – (165 ) Current portion – 97 – The provision as at 31 December 2020 relates to the ‘making good’ clause on the Cardiff office which is due to be vacated during 2021. The provision in previous years relates to the ‘making good’ clause on the Abingdon office which was vacated in December 2018. The Abingdon office was sub-let for the remaining period of the lease, which terminated in February 2020. |
21 Derivative financial liabili
21 Derivative financial liability - current | 12 Months Ended |
Dec. 31, 2020 | |
Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | |
Derivative financial liability - current | 21 Derivative financial liability – current 2020 £’000 2019 £’000 2018 £’000 Equity settled derivative financial liability At 1 January 664 – – Warrants issued 997 1,148 – Transfer to share premium on exercise of warrants (499 ) Gain recognised in finance income within the consolidated statement 397 (484 ) – At 31 December 1,559 664 – Equity settled derivative financial liability is a liability that is not to be settled for cash. In May 2020 the Group issued 9,545,456 warrants in the ordinary share capital of the company as part of a Registered Direct Offering. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account (‘FVTPL’). The financial liability is valued using the Monte Carlo model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22 On 19 August 2020 2,500,000 pre-existing warrants were exercised at $0.41. The gross proceeds received by the company was $1,025,000. The fair value of the warrants on the date of exercise was £498,502. At 31 December 2020 7,045,455 warrants were outstanding. In October 2019 the Group issued 3,150,000 warrants in the ordinary share capital of the company as part of a Registered Direct Offering. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars. The warrants are classified equity settled derivative financial liabilities and accounted for in the same way as those issued in May 2020. The financial liability is valued using the Monte Carlo model. At 31 December 2020 and 31 December 2019, 3,150,000 warrants were outstanding. The Group also assumed fully vested warrants and share options on the acquisition of DARA Biosciences, Inc. (which took place in 2015). The number of ordinary shares to be issued when exercised is fixed, however the exercise prices are denominated in US Dollars. The warrants are classified equity settled derivative financial liabilities and accounted for in the same way as those issued in May 2020. The financial liability is valued using the Black-Scholes option pricing model. At 31 December 2018 a further 8,846 options and 38,844 warrants had lapsed and the share price had fallen to £1.20. As the liability had already been reduced to zero there was no movement on re-measurement. At 31 December 2019 a further 3,332 options and 111,582 warrants had lapsed and the share price had fallen to £0.56. As the liability had already been reduced to zero there was no movement on re-measurement. During 2020 no options or warrants lapsed and the share price had fallen to £0.265. As the liability had already been reduced to zero there was no movement on re-measurement. |
22 Financial instruments - risk
22 Financial instruments - risk management | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments - risk management | 22 Financial instruments – risk management The Group is exposed through its operations to the following financial risks: Credit risk Foreign exchange risk Liquidity risk In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. The Board does not believe that its risk exposure to financial instruments, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note has changed in the past year. Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: Trade and other receivables Cash and cash equivalents Trade and other payables Accruals Loans and borrowings Derivative financial liability A summary of the financial instruments held by category is provided below: Financial assets – amortised cost 2020 £’000 2019 £’000 2018 £’000 Cash and cash equivalents 7,546 10,928 2,343 Trade receivables 95 22 89 Other receivables – 2,625 469 Total financial assets 7,641 13,575 2,901 Financial liabilities – amortised cost 2020 £’000 2019 £’000 2018 £’000 Trade payables 337 725 286 Other payables 26 13 – Accruals 768 1,765 1,025 Borrowings 260 6,082 1,252 Total financial liabilities – amortised cost 1,391 8,585 2,563 Financial liabilities – fair value through profit and loss – current 2020 £’000 2019 £’000 2018 £’000 Equity settled derivative financial liability 1,559 664 – General objectives, policies and processes The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group’s management. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below: Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets and liabilities; Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The fair value of the Group’s derivative financial liability is measured at fair value on a recurring basis. The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 21: Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled financial derivative liability £1,187,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.07% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability £372,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.08% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – Level 3 Black-Scholes option pricing model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.8% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled financial derivative liability £664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled financial derivative liability – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled financial derivative liability – Level 3 Black-Scholes option pricing model Volatility rate of 42.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 7.6 years determined using the remaining life of the share options. The shorter the expected life the Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. The higher the Changing the unobservable risk free rate input to the valuation model by 10% higher while all other variables were held constant, would not impact the carrying amount of shares (2019: nil, 2018: nil). There were no transfers between Level 1 and 2 in the period. The financial liability measured at fair value on Level 3 fair value measurement represents consideration relating to warrants issued in May 2020 and October 2019 as part of Registered Direct offerings and also a business combination. In 2018 this only related to consideration relating to a business combination. Credit risk Credit risk is the risk of financial loss to the Group if a development partner or a counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from amounts due from collaborative partners which is deemed to be low. Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial institutions, only independently rated parties with high credit status are accepted. The Group does not enter into derivatives to manage credit risk. The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss. The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. Quantitative disclosures of the credit risk exposure in relation to financial assets are set out in note 15 The total exposure to credit risk of the Group is equal to the total value of the financial assets held at each year end as noted above. Cash in bank The Group is continually reviewing the credit risk associated with holding money on deposit in banks and seeks to mitigate this risk by holding deposits with banks with high credit status. Foreign exchange risk Foreign exchange risk arose because the Group had a material operation located in Bilbao, Spain, until 2020, whose functional currency was not the same as the functional currency of the Group. The Group’s net assets arising from the overseas operation were exposed to currency risk resulting in gains or losses on retranslation into sterling. Given the levels of materiality, the Group did not hedge its net investments in overseas operations as the cost of doing so would be disproportionate to the exposure. Foreign exchange risk also arises when individual Group entities enter into transactions denominated in a currency other than their functional currency; the Group’s transactions outside the UK to the US, Europe and Australia drive foreign exchange movements where suppliers invoice in currency other than sterling. These transactions are not hedged because the cost of doing so is disproportionate to the risk. The table below shows analysis of the Pounds Sterling equivalent of year-end cash and cash equivalent balances by currency: 2020 £’000 2019 £’000 2018 £’000 Cash and cash equivalents: Pounds Sterling 7,247 3,153 457 US Dollar 120 2,021 1,421 Euro 179 5,750 459 Other - 4 6 Total 7,546 10,928 2,343 The table below shows the foreign currency exposure that gives rise to net currency gains and losses recognised in the consolidated statement of comprehensive income. Such exposures comprise the net monetary assets and monetary liabilities of the Group that are not denominated in the functional currency of the relevant Group entity. As at 31 December, these exposures were as follows: 2020 £’000 2019 £’000 2018 £’000 Net Foreign Currency Assets/(Liabilities): US Dollar 120 2,021 1,421 Euro 54 1,460 552 Other 1 7 8 Total 175 3,488 1,981 Foreign currency sensitivity analysis The most significant currencies in which the Group transacts, other than Pounds Sterling, are the US Dollar and the Euro. The Group also trades in other currencies in small amounts as necessary. The following table details the Group’s sensitivity to a 10% change in year-end exchange rates, which the Group feels is the maximum likely change in rate based upon recent currency movements, in the key foreign currency exchange rates against Pounds Sterling: Year ended 31 December 2020 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 12 (293 ) (4 ) Total equity 12 (293 ) (4 ) Year ended 31 December 2019 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 202 54 – Total equity 202 31 1 Year ended 31 December 2018 US Dollar £’000 Euro £’000 Other £’000 Loss before tax – 168 – Total equity 142 168 – The sale of the Midatech Pharma US, Inc. operation prior to 31 December 2018 resulted in there not being any US Dollar denominated assets or liabilities to report on other than a US Dollar cash balance held by Midatech Pharma PLC. In management’s opinion, the sensitivity analysis for the year ended 31 December 2018 is unrepresentative of the inherent foreign exchange risk as the year-end exposure does not reflect the exposure during the year. Liquidity risk Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. It is the Group’s aim to settle balances as they become due. In May 2020, the Company completed a concurrent Registered Direct Offering in the US and a Placing in the UK whereby the Company raised £4.26m before expenses. In July 2020, the Company completed a UK Placing which raised £5.75m before expenses. In August 2020, previously issued warrants were exercised resulting in the Company receiving £0.78m before expenses. The Directors have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next three years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required during the fourth quarter of 2021 assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that may cast significant doubt upon the Group and parent company’s ability to continue as a going concern. In addition, the global pandemic COVID-19 virus places increased uncertainty over the Directors’ forecasts. The restrictions being placed on the movement of people will likely cause delays to some of the Group’s plans. It is difficult to assess to what extent, and for how long, COVID-19 will cause delays to the Group’s operations. The Directors have established a COVID-19 task force internally to monitor the impact of COVID-19 on the business and prioritize activities to minimize its effect. The Directors are evaluating a number of near-term funding options potentially available to the Group, including fundraising and the partnering of assets and technologies of the Company. After considering the uncertainties, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing these financial statements. The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: 2020 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,131 – – – – Bank loans – – – – – Lease liabilities 25 75 61 8 Government research loans 107 – – – – Total 1,263 75 61 8 2019 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 2,503 – – – – Bank loans – – – – – Lease liabilities 79 165 317 735 – Government research loans – 272 238 2,851 3,317 Total 2,582 437 555 3,586 3,317 2018 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,311 – – – – Bank loans 3 2 – – – Finance leases 22 65 79 117 – Government research loans 44 240 406 414 – Total 1,380 307 485 531 – More details with regard to the line items above are included in the respective notes: • Trade and other payables – note 18 Borrowings – note 19 As a result of the Strategic Review undertaken in March 2020 the Group repaid all but one Government Research loans during 2020. The remaining loan will be repaid in 2021. Capital risk management The Group monitors capital which comprises all components of equity (i.e. share capital, share premium, foreign exchange reserve and accumulated deficit). The Group’s objectives when maintaining capital are: to safeguard the entity’s ability to continue as a going concern; and to have sufficient resource to take development projects forward towards commercialisation. The Group continues to incur substantial operating expenses. Until the Group generates positive net cash inflows from the commercialisation of its products it remains dependent upon additional funding through the injection of equity capital and government funding. The Group may not be able to generate positive net cash inflows in the future or to attract such additional required funding at all, or on suitable terms. In such circumstances the development programmes may be delayed or cancelled, and business operations cut back. The Group seeks to reduce this risk by keeping a tight control on expenditure, avoiding long term supplier contracts (other than clinical trials), prioritising development spend on products closest to potential revenue generation, obtaining government grants (where applicable), maintaining a focussed portfolio of products under development and keeping shareholders informed of progress. There have been no changes to the Group’s objectives, policies and processes for managing capital and what the Group manages as capital, unless otherwise stated in this note, since the previous year. |
23 Deferred tax
23 Deferred tax | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Tax | |
Deferred tax | 23 Deferred tax Deferred tax is calculated in full on temporary differences under the liability method using tax rates applicable in the tax jurisdictions where the tax asset or liability would arise The movement on the deferred tax account in 2020 is £nil (2019: £nil, 2018: £nil) as the net credit arising on the amortisation of intangible assets and other timing differences has been matched by a reduction in the deferred tax asset recognised on the losses offsetting the liability remaining. Unused tax losses carried forward, subject to agreement with local tax authorities, were as follows: Gross £’000 Potential £’000 31 December 2020 63,183 13,076 31 December 2019 49,565 8,426 31 December 2018 40,741 6,926 During 2020 the remaining deferred tax asset and liability arising on the business combination of Midatech Pharma (Wales) Ltd (2019: £1.6m) was de-recognised as a result of the impairment of the assets through the Consolidated Statements of Comprehensive Income. The deferred tax asset which qualifies for offset against the deferred tax liability, mainly arising on the acquisitions of Midatech Pharma (Wales) Limited in 2020 is nil (2019: £1.6m, 2018: £1.7m). The remaining potential deferred tax asset of £13.1m (2019 £9.0m, 2018: £7.3m) has not been provided in these accounts due to uncertainty as to whether the asset would be recovered. Deferred tax asset balances disclosed as at 31 December 2020 have been calculated at 19%. The Finance Bill 2021 enacts an increase in the tax rate to 25% from 1 April 2023. The deferred tax assets balance using a rate of 25% would be £17.2m. Unrecognised deferred tax asset balances include £0.9m in relation to Midatech Pharma (España) SL, this company was put into liquidation in 2021. Details of the deferred tax liability are as follows: 2020 Asset £’000 Liability £’000 Net £’000 Business Combinations – – – 2019 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,581 (1,581 ) – 2018 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,690 (1,690 ) – |
24 Share capital
24 Share capital | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Share capital | 24 Share capital Authorised, allotted and 2020 Number 2020 £ 2019 Number 2019 £ 2018 Number 2018 £ At 31 December Ordinary shares of 63,073,852 63,074 23,494,981 23,495 3,059,207 3,059 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,063,075 1,023,496 1,003,060 On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The above table reflects the share consolidation in the comparative figures. In accordance with the Articles of Association for the Company adopted on 13 November 2014, the share capital of the Company consists of an unlimited number of ordinary shares of nominal value £0.001 each. Ordinary and deferred shares were recorded as equity. Rights attaching to the shares following the incorporation of Midatech Pharma plc Shares classified as equity The holders of ordinary shares in the capital of the Company have the following rights: (a) to receive notice of, to attend and to vote at all general meetings of the Company, in which case shareholders shall have one vote for each share of which he is the holder; and, (b) to receive such dividend as is declared by the Board on each share held. The holders of deferred shares in the capital of the Company: (a) shall not be entitled to receive notice of or to attend or speak at any general meeting of the Company or to vote on any resolution to be proposed at any general meeting of the Company; and (b) shall not be entitled to receive any dividend or other distribution of out of the profits of the Company. In the event of a distribution of assets, the deferred shareholders shall receive the nominal amount paid up on such share after the holder of each ordinary share shall have received (in cash or specie) the amount paid up or credited as paid up on such ordinary share together with an additional payment of £100 per share. The Company has the authority to purchase the deferred shares and may require the holder of the deferred shares to sell them for a price not exceeding 1p for all the deferred shares. Ordinary Shares Number Deferred Shares Number Share £ Total £’000 At 1 January 2018 3,054,207 1,000,001 69,870 2018 1 August 2018 Share issue to SIPP trustee (see note 27) 5,000 0.001 – At 31 December 2018 3,059,207 1,000,001 69,870 2019 26 February 2019 Subscription, Placing and Open Offer 17,410,774 0.77 13,406 8 October 2019 Share issue to SIPP trustee (see note 27) 25,000 0.001 – 29 October 2019 Registered Direct Offering 3,000,000 0.7874 2,362 At 31 December 2019 23,494,981 1,000,001 85,638 2020 18 May 2020 Placing & Registered Direct Offering 15,757,576 0.27 4,255 27 July 2020 Placing 21,296,295 0.27 5,750 19 August 2020 Exercise of warrants 2,500,000 783 30 September 2020 Share issue to SIPP trustee (see note 27) 25,000 0.001 – At 31 December 2020 63,073,852 1,000,001 96,426 |
25 Reserves
25 Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Reserves | |
Reserves | 25 Reserves The following describes the nature and purpose of each reserve within equity: Reserve Description and purpose Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling. Warrant reserve Represents the fair value of warrants denominated in £ at the date of grant. Accumulated deficit All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. On 18 May 2020, 6,999,999 warrants were granted as part of the UK placing. Their fair value at the date of grant has been recognised in the Warrant Reserve. |
26 Retirement benefits
26 Retirement benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits | |
Retirement benefits | 26 Retirement benefits The Group operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are administered by trustees in funds independent from those of the Group. |
27 Share-based Payments
27 Share-based Payments | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payments | |
Share-based Payments | 27 Share-based payments Share Options The Group has issued options over ordinary shares under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme, the Midatech Pharma plc 2016 U.S. Option Plan, which is a sub-plan of the approved UK plan, and unapproved share options awarded to non-UK or non-US staff. In addition, certain share options originally issued over shares in Midatech Limited under the Midatech Limited 2008 unapproved share option scheme or Midatech Limited 2013 approved Enterprise Incentive scheme were reissued in 2015 over shares in Midatech Pharma plc under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme. Exercise of an option is subject to continued employment. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The following tables reflect the share consolidation in the comparative tables. Details of all share options granted under the Schemes are set out below: Date of grant At 1 January Granted in 2020 Exercised Forfeited At 31 December Exercise Price 1 April 2010 1,255 – – (1,255 ) – £ 80.00 20 August 2010 2,088 – – (2,088 ) – £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 18,500 – – (18,000 ) 500 £ 1.50 11 July 2014 100 – – (100 ) – £ 1.50 31 October 2016 16,271 – – (8,350 ) 7,921 £ 53.60 14 December 2016 400 – – (400 ) – £ 31.00 14 December 2016 500 – – (500 ) – £ 34.00 14 December 2016 2,000 – – (2,000 ) – £ 37.40 14 December 2016 1,625 – – (1,625 ) – £ 37.60 15 December 2016 4,600 – – (4,600 ) – £ 24.20 19 December 2016 22,391 – – (12,373 ) 10,018 £ 24.20 15 December 2017 29,560 – – (26,260 ) 3,300 £ 9.20 2 April 2018 997 – – (997 ) – £ 16.60 2 April 2018 4,500 – – (4,500 ) – £ 24.20 24 April 2019 169,500 – – (124,000 ) 45,500 £ 1.46 2 October 2019 50,000 – – (20,000 ) 30,000 £ 1.05 17 April 2020 – 100,000 – – 100,000 £ 0.24 17 June 2020 – 1,363,000 – (89,000 ) 1,274,000 £ 0.202 336,026 1,463,000 – (316,048 ) 1,482,978 Options exercisable at 31 December 2020 195,171 Weighted average exercise price of outstanding options at 31 December 2020 £ 0.835 Weighted average exercise price of options exercised in 2020 n/a Weighted average exercise price of options forfeited in 2020 £ 7.192 Weighted average exercise price of options granted in 2020 £ 0.205 Weighted average remaining contractual life of outstanding options at 31 December 2020 9.2 Date of grant At 1 January Granted in 2019 Exercised Forfeited At 31 December Exercise Price 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 21,500 – – (3,000 ) 18,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – (2,500 ) – £ 34.20 31 October 2016 23,411 – – (7,140 ) 16,271 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 1,625 – – – 1,625 £ 37.60 15 December 2016 4,600 – – – 4,600 £ 24.20 19 December 2016 35,866 – – (13,475 ) 22,391 £ 24.20 15 December 2017 45,885 – – (16,325 ) 29,560 £ 9.20 2 April 2018 997 – – – 997 £ 16.60 2 April 2018 4,500 – – – 4,500 £ 24.20 24 April 2019 – 219,000 – (49,500 ) 169,500 £ 1.46 2 October 2019 – 50,000 – – 50,000 £ 1.05 158,966 269,000 – (91,940 ) 336,026 Options exercisable at 31 December 2019 131,094 Weighted average exercise price of outstanding options at 31 December 2019 £ 8.48 Weighted average exercise price of options exercised in 2019 n/a Weighted average exercise price of options forfeited in 2019 £ 13.26 Weighted average exercise price of options granted in 2019 £ 1.38 Weighted average remaining contractual life of outstanding options at 31 December 2019 7.9 years Date of grant At 1 January Granted in 2018 Exercised Forfeited At 31 December Exercise Price 31 December 2008 1,306 – – (1,306 ) – £ 28.50 31 December 2008 150 – – (150 ) – £ 79.70 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,789 – – (200 ) 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 44,000 – – (22,500 ) 21,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – – 2,500 £ 34.20 31 October 2016 30,380 – – (6,969 ) 23,411 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 2,000 – – (375 ) 1,625 £ 37.60 15 December 2016 5,100 – – (500 ) 4,600 £ 24.20 19 December 2016 55,210 – – (19,344 ) 35,866 £ 24.20 15 December 2017 67,560 – – (21,675 ) 45,885 £ 9.20 2 April 2018 – 997 – – 997 £ 16.60 2 April 2018 – 4,500 – – 4,500 £ 24.20 226,488 5,497 – (73,019 ) 158,966 Options exercisable at 31 December 2018 112,393 Weighted average exercise price of outstanding options at 31 December 2018 £ 22.02 Weighted average exercise price of options exercised in 2018 n/a Weighted average exercise price of options forfeited in 2018 £ 15.98 Weighted average exercise price of options granted in 2018 £ 16.60 Weighted average remaining contractual life of outstanding options at 31 December 2018 5.7 years The following information is relevant in the determination of the fair value of options granted during the year 2020 under the equity share based remuneration schemes operated by the Group. April 2020 June 2020 Number of options 100,000 1,363,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 0.24 * £ 0.213 * Exercise price of options issued in year £ 0.24 £ 0.202 Contractual life 10 years 10 years Expected life 5 years 5 years Volatility 84.76 %** 92.55 %** Expected dividend yield 0 % 0 % Risk free rate 0.11 % 0.10 % * The share price used in the determination of the fair value of the options granted in 2020 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2019 under the equity share based remuneration schemes operated by the Group. April 2019 October 2019 Number of options 219,000 50,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 2.30 * £ 1.126 * Exercise price of options issued in year £ 1.46 £ 1.05 Contractual life 10 years 10 years Expected life 5 years 5 years Volatility 75.3 %** 78.3 %** Expected dividend yield 0 % 0 % Risk free rate 0.85 % 0.26 % * The share price used in the determination of the fair value of the options granted in 2019 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2018 under the equity share based remuneration schemes operated by the Group. 2018 Number of options 5,500 Option pricing models used Monte-Carlo Share price £ 5.40 * Exercise price of options issued in year £16.60–£24.40 Contractual life 10 years Expected life 5 years Volatility 45.2 %** Expected dividend yield 0 % Risk free rate 1.03 % * The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. All other share options relate to the Midatech Limited 2008 unapproved share option scheme. Share Incentive Plan In April 2017 the Group set up the Midatech Pharma Share Incentive Plan (MPSIP). Under the MPSIP, Group employees and Directors can acquire ordinary shares in the Company via a salary sacrifice arrangement. Midatech grants matching shares for every share bought. In order to retain these shares, scheme participants must remain employed by the Group for three years from the date of acquisition. All shares purchased by the MPSIP are held by an Employee Benefit Trust that is not under the control of Midatech. Shares must be left in the plan for 5 years to qualify for full income tax and NIC relief. |
28 Capital commitments
28 Capital commitments | 12 Months Ended |
Dec. 31, 2020 | |
Capital commitments [abstract] | |
Capital commitments | 28 Capital commitments The Group had no capital commitments at 31 December 2020, 31 December 2019 and 31 December 2018. |
29 Related party transactions
29 Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 29 Related party transactions Details of Directors’ remuneration are given in the Company’s Annual Report on Form 20-F for the year ended 31 December 2020 and note 6. Trading Transactions The Directors consider BioConnection BV to be a related party by virtue of the fact that there is a common Director with the Company. 2019 was the first year where this relationship existed. During the year Group companies entered into the following transactions with related parties who are not members of the Group. Purchase of good Amounts owed by related parties 2020 €’000 2019 €’000 2018 €’000 2020 €’000 2019 €£’000 2018 €’000 BioConnection BV 296 18 – – 8 – During 2019 Midatech Pharma (Espana) SL entered into a commercial contract with BioConnection BV in connection with the Group’s MTD201 program, this contract was subsequently terminated in 2020 as a result of the termination of the program. The Group has not made any allowances for bad or doubtful debts in respect of related party debtors nor has any guarantee been given or received during 2020,2019 or 18 regarding related party transactions. |
30 Contingent liabilities
30 Contingent liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Contingent Liabilities | |
Contingent liabilities | 30 Contingent liabilities As at 31 December 2019 the Group was party to a claim by the estate of a former employee for unfair dismissal. The claim comprised various elements totalling €258,000. During the year the case was settled by the Group for €190,000. This has been recognised in Administrative costs in the Consolidated Statement of Comprehensive Income. The Group had no contingent liabilities at 31 December 2020 and 31 December 2018. |
31 Ultimate controlling party
31 Ultimate controlling party | 12 Months Ended |
Dec. 31, 2020 | |
Ultimate Controlling Party | |
Ultimate controlling party | 31 Ultimate controlling party The Directors do not consider that there is an ultimate controlling party. |
32 Results of Midatech Pharma (
32 Results of Midatech Pharma (Espana) SL | 12 Months Ended |
Dec. 31, 2020 | |
Results Of Midatech Pharma Espana Sl | |
Results of Midatech Pharma (Espana) SL | 32 Results of Midatech Pharma (España) SL Included within the Group Consolidated Statements of Comprehensive Income are the results of the Group’s Spanish operation that was closed on 3 June 2020. The Group appointed a liquidator to liquidate the company with documentation being submitted to the Spanish Authorities in February 2021. Management assessed whether Midatech Pharma (España) SL should be accounted for as a discontinued operation under IFRS 5 and concluded that it did not meet the criteria as it did not meet the definition of a cash generating unit, as the activity of the company was the same as the remaining operations of the Group. The unaudited Year ended £’000 Grant revenue 163 Total revenue 163 Research and development costs (2,820 ) Administrative costs (1,146 ) Loss from operations (3,803 ) Finance expense (11 ) Loss before tax (3,814 ) Taxation (21 ) Loss from operations after tax (3,835 ) |
33 Post balance sheet events
33 Post balance sheet events | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Post balance sheet event | 33 Post balance sheet events In February 2021 the Group received a fine of €149,835 from the Spanish Tax Authorities in relation to the late repayment of a Government loan in 2020 as a result of the closure of its operation in Spain. The Group consider the fine is without foundation and are currently appealing the fine. The directors note that in the event of an unfavourable outcome the Group would not be able to recoup the loss from another party. This liability has been recognised in the Statement of Financial Position and the related expenses in Administrative costs in the Income Statement. On January 26, 2021, the Company announced that it was engaged in tentative discussions with a third party around the potential co-development of MTX110. On March 25, 2021, the Company announced these discussions had now advanced and a non-binding Heads of Terms had been agreed. The Heads of Terms envisage that, if the deal progresses to definitive agreements, the Company would expect to receive a modest upfront payment upon execution, success-based development and sales milestones and royalties typical for a licensing agreement with products in a similar stage of development. R&D expenses would be assumed by the two parties with the apportionment to be agreed based on their respective territories. There can be no assurance on the timing for concluding the discussions nor any assurance that the parties will enter into definitive agreements. On 23 April 2021 the Group signed an agreement for lease on new premises in Cardiff to house our corporate offices and laboratories. The new premises comprises 8,118 square feet and is for a 5 year term. |
1 Accounting policies (Policies
1 Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | |
General information | General information Midatech Pharma plc (the ‘Company’) is a company registered and domiciled in England and Wales. The Company was incorporated on 12 September 2014. The Company is a public limited company, which has been listed on the Alternative Investment Market (‘AIM’), which is a submarket of the London Stock Exchange, since 8 December 2014. In addition, since 4 December 2015 the Company has American Depository Receipts (‘ADRs’) registered with the US Securities and Exchange Commission (‘SEC’) and is listed on the NASDAQ Capital Market. The financial statements were approved and authorised for issue by the Board of Directors on 29 April 2021. |
Basis of preparation | Basis of preparation The Group was formed on 31 October 2014 when Midatech Pharma plc entered into an agreement to acquire the entire share capital of Midatech Limited and its wholly owned subsidiaries through the issue equivalent of shares in the Company which took place on 13 November 2014. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB). The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the periods presented. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This changed from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. Comparative numbers of shares and share options/warrants and related exercise/issue prices and earnings per share reflect the impact of the March 2020 share consolidation The consolidated financial statements have been prepared on a historical cost basis, except for the following item (refer to individual accounting policies for details): - Financial instruments – fair value through profit or loss. |
Adoption of new and revised standards | Adoption of new and revised standards New standards, interpretations and amendments effective from 1 January 2020 New standards adopted by the Group in the annual financial statements for the year ended 31 December 2020 are: • Definition of a Business (Amendments to IFRS 3); • Interest Rate Benchmark Reform – IBOR ‘phase 2’ (Amendments to IFRS 9, IAS 39 and IFRS 7); and • COVID-19-Related Rent Concessions (Amendments to IFRS 16). The adoption of the above new standards has not had a material impact on the financial statements during the year ended 31 December 2020. New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2022: • Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37); • Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16); • Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS16 and IAS 41); and • References to Conceptual Framework (Amendments to IFRS 3). In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments were originally effective for annual reporting periods beginning on or after 1 January 2022.However, in May 2020, the effective date was deferred to annual reporting periods beginning on or after 1 January 2023. These new accounting standards and amendments are not expected to have a material impact on the Group. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the group. |
Basis for consolidation | Basis for consolidation The Group financial statements consolidate those of the parent company and all of its subsidiaries. The parent controls a subsidiary if it has power over the investee to significantly direct the activities, exposure, or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. All subsidiaries have a reporting date of 31 December. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. The loss and other comprehensive income of Midatech Pharma US, Inc. (“MPUS”), formerly DARA Biosciences, Inc., acquired in December 2015 is recognised from the effective date of acquisition i.e. 4 December 2015 through to the date of sale on 1 November 2018. Similarly, the loss and other comprehensive income of Zuplenz®, acquired as a business by Midatech Pharma plc, is recognised from 24 December 2015 until 31 October 2018 (up to the formal completion of the sale of MPUS on 1 November 2018). Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the re-measurement to fair value less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations. The consolidated financial statements consist of the results of the following entities: Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) In liquidation PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Dissolved - 2020 Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 November 2018) Trading company Dara Therapeutics, Inc. (until 1 November 2018) Dormant |
Going concern | Going concern The Group and Company are subject to a number of risks similar to those of other development and early-commercial stage pharmaceutical companies. These risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing and obtaining related regulatory approvals of our pipeline products. Ultimately, the attainment of profitable operations is dependent on future uncertain events which include obtaining adequate financing to fulfill our commercial and development activities and generating a level of revenue adequate to support our cost structure. We have experienced net losses and significant cash outflows from cash used in operating activities over the past years we develop our portfolio. For the year ended December 31, 2020, the Company incurred a consolidated loss from operations of £22.2million and negative cash flows from operations of £9.3million. As of December 31, 2020, we had an accumulated deficit of £122.4million. Our future viability is dependent on our ability to generate cash from operating activities, to raise additional capital to finance our operations and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue our business strategies. Our Group's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2020, we had cash and cash equivalents of £7.5million. We believe we currently have enough cash to fund our planned operations into the fourth quarter of 2021. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for our next three years, including the period twelve months from the date of the approval of the financial statements. These forecasts show that further financing will be required during the course of the next 12 months, assuming, inter alia, that certain development programs and other operating activities continue as currently planned. This requirement for additional financing represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of and for the year ended December 31, 2020 with respect to this uncertainty. In addition, the global spread of pandemic novel coronavirus, COVID-19, places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people have caused, and may in the future cause, delays to some of our plans. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. It is not currently possible to quantify the impact of COVID-19 and resultant delays on the Company until it becomes clear that the global crisis has abated and a normalization of the business environment can be foreseen with confidence In addition to utilizing the existing cash reserves, as part of our strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets or technologies or the sale of the Company. After considering the uncertainties, we considered it appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. |
Revenue | Revenue Revenue is accounted for in line with principles of IFRS 15 ‘Revenue from contracts with customers’ Revenue from licensing agreements The Group entered into a Licence Agreement during 2019. The licence consists of two distinct performance conditions, which is the grant of the license to use of its intellectual property (“IP”) and the supply of Product. After the Company has granted the license, and the Product is granted applicable marketing authorizations in the EU, the US, or the UK, France, Germany or Switzerland and China, there are no further obligations to participate in, or provide additional services to its customer. The transaction price for the grant of the license to use the Company’s IP comprises of fixed and variable payment streams and the grant of the license is considered to be a right to use IP. Upfront fees earned, are recognised as revenue at a point in time, upon transfer of control over the license to the licensee and the grant of the applicable marketing authorisation by the relevant statutory authority. Revenue from variable consideration, which is contingent on achievements of future milestones is recognised as revenue when it is highly probable the revenue will not reverse, that is when the underlying contingencies have been resolved. For future royalty payments associated with a license, the Company applies the IFRS 15 exception for sales-based royalties and recognises the revenue only when the subsequent sale occurs. Supply of Goods Revenue from sales of goods to customer are recognised when all performance obligations are met. These criteria are considered to be met when the goods are delivered to the customer. Revenue represents the full list price of products shipped to wholesalers and other customers less product returns, discounts, rebates and other incentives based on the sales price. Supply of Services Revenue from the supply of services is subject to specific agreement. This is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. Milestones The Group’s revenue also include milestone income from research and development contracts. Milestone income is recognised as revenue in the accounting period in which the milestones are achieved. Milestones are agreed on a project by project basis and will be evidenced by set deliverables. |
Grant revenue | Grant revenue Where grant income is received, which is not a direct re-imbursement of related costs and at the point at which the conditions have been met for recognition as income, this has been shown within grant revenue. |
Government grants and government loans | Government grants and government loans Where government grants are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as the expenditure towards which they are intended to contribute. The Group receives government loans that have a below-market rate of interest. These loans are recognised and measured in accordance with IFRS 9. The benefit of the below-market rate of interest is measured as the difference between the initial carrying value of the loan discounted at a market rate of interest and the proceeds received. The difference is held within deferred revenue as a government grant and is released as a credit to grant income or to research and development expense in line with the expenditure to which it relates. In a situation where the proceeds were invested in plant and equipment, the deferred revenue is credited to research and development within the income statement in line with the depreciation of the acquired asset. |
Business combinations and externally acquired intangible assets | Business combinations and externally acquired intangible assets Business combinations are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the acquisition date, being: · the fair value of the consideration transferred to the seller, plus; · the amount of any non-controlling interest in the acquiree, plus; · if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the acquisition date, less; · the fair value of the net identifiable assets acquired and assumed liabilities. Acquisition costs incurred are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability, will be recognised either as a profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it is not re-measured. An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable or when it arises from contractual or other legal rights. Externally acquired intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives where they are in use. The amortisation expense is included within the distribution costs, sales and marketing in the consolidated statement of comprehensive income. Goodwill is stated at cost less any accumulated impairment losses. The amounts ascribed to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques (see section related to critical estimates and judgements below). In-process research and development (‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development costs below are not met. IPRD is subject to annual impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development capitalisation as set out below. As per IFRS 3, once the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life. The product and marketing rights recognised in 2017 related to various licenses, the Group held via its US subsidiary. These rights were disposed of with the sale of the subsidiary. The significant intangibles recognised by the Group and their useful economic lives are as follows: Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years Product and marketing rights – Between 2 and 12 years The useful economic life of IPRD will be determined when the in-process research projects are completed. Amortisation of product and marketing rights ceased in June 2018 when the US entity was classified as held for sale. |
Internally generated intangible assets (development costs) | Internally generated intangible assets (development costs) Expenditure on the research phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied: · completion of the asset is technically feasible so that it will be available for use or sale; · the Group intends to complete the asset and use or sell it; · the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); · there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and · the expenditure attributable to the asset during its development can be measured reliably. Judgement is applied when deciding whether the recognition criteria are met. Judgements are based on the information available. In addition, all internal activities related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country. Development expenditure not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive Income as incurred. No projects have yet reached the point of capitalisation. |
Impairment of non-financial assets | Impairment of non-financial assets Assets that have an indefinite useful life, for example goodwill, or intangible assets not ready for use, such as IPRD, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. An impairment charge of £12.4m has been recognised in 2020 within continuing operations. This charge is split £9.3m against the IPRD and £2.3m of goodwill, both of these relate to Midatech Pharma (Wales) Ltd cash generating unit and £0.8m against acquired IRPD on MTX110. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). After the disposal of the US operation on 1 November 2018, the Group at 31 December 2020 had only one cash generating unit (2019:one, 2018: one), as set out in note 13 Impairment charges are included in profit or loss, except, where applicable, to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed. |
Patents and trademarks | Patents and trademarks The costs incurred in establishing patents and trademarks are either expensed in accordance with the corresponding treatment of the development expenditure for the product to which they relate or capitalised if the development expenditure to which they relate has reached the point of capitalisation as an intangible asset. |
Joint arrangements | Joint arrangements The Group is a party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries. The Group classifies its interests in joint arrangements as either: · Joint ventures: where the Group has rights to only the net assets of the joint arrangement; or · Joint operations: where the Group has both the rights to assets and obligations for the liabilities of the joint arrangement. In assessing the classification of interests in joint arrangements, the Group considers: · the structure of the joint arrangement; · the legal form of joint arrangements structured through a separate vehicle; · the contractual terms of the joint arrangement agreement; and · any other facts and circumstances (including any other contractual arrangements). The results and assets and liabilities of joint ventures are incorporated in the financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in a joint venture is recognised initially in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the joint venture. When the Group’s share of losses of a joint venture exceeds the Group’s interest in that joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture. |
Foreign currency | Foreign currency Transactions entered into by subsidiary entities in a currency other than the currency of the primary economic environment, in which they operate, are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. The presentational currency of the Group is Pounds Sterling, and the functional currency is also Pounds Sterling. Foreign subsidiaries use the local currencies of the country where the operate. On consolidation, the results of overseas operations are translated into Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in the profit or loss of Group entities on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation. On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the gain or loss on disposal. |
Financial assets and liabilities | Financial assets and liabilities Assets at amortised cost The Group does not have any financial assets which it would classify as fair value through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. For impairment provisions, the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk and ageing The expected loss rates are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss rates are then adjusted for current and forward-looking information on macroeconomic factors. The Group’s assets at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. Cash and cash equivalents include cash in hand, deposits held at call with original maturities of three months or less. Financial liabilities The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22. Other financial liabilities include the following items: · Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. · Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development expenditure or grant income in line with when the asset or expenditure is recognised in the income statement. · Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. |
Share capital | Share capital Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group has two classes of share in existence: · ordinary shares of £0.001 each are classified as equity instruments; · deferred shares of £1 each are classified as equity instruments. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company. Comparative figures in these financial statements reflect the impact of the share consolidation. |
Retirement benefits: defined contribution schemes | Retirement benefits: defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate. |
Provisions | Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
Share-based payments | Share-based payments The Group operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: · including any market performance conditions (including the share price); · excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and · including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Where vesting conditions are accelerated on the occurrence of a specified event, such as a change in control or initial public offering, such remaining unvested charge is accelerated In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grant date fair value is estimated for the purposes of recognising the expense during the period between service commencement period and grant date. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity. When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. |
Leases | Leases Identifying Leases The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria: (a) There is an identified asset; (b) The Group obtains substantially all the economic benefits from use of the asset; and (c) The Group has the right to direct use of the asset. The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the economic benefits that arise from the use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Group considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other applicable IFRSs rather than IFRS 16. All leases are accounted for by recognising a right-of-use asset and a lease liability except for: · Leases of low value assets; and · Leases with a duration of 12 months or less. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the group’s incremental borrowing rate on commencement of the lease. Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease. When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss. In 2018 the Group entered into a sublease agreement to mitigate the impact of an otherwise onerous lease on the closure of its Abingdon site. This has been recognised as a lease receivable as the Group determined that the sublease meets the definition of a finance lease under the transitional provisions of IFRS16 and therefore, no right-of-use asset is recognised. During 2020 the lease and sub-lease ended. Nature of leasing activities (in the capacity as lessee) The group leased a number of properties in the jurisdictions from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. As at 31 December 2020 the Group had one property lease in place in the UK. |
Deferred taxation | Deferred taxation Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs from its tax base, except for differences arising on: · the initial recognition of goodwill; · the initial recognition of an asset or liability in a transaction which is not a business combination and at the time · investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future. Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax assets or liabilities are recovered or settled. |
Property, plant and equipment | Property, plant and equipment Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs. Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: Fixtures and fittings – 25% per annum straight line Leasehold improvements – the shorter of 10% per annum straight line or over the lease term Computer equipment – 25% per annum straight line Laboratory equipment – 15% – 25% per annum straight line Right of use asset – Economic life of contractual relationship |
Inventories | Inventories Inventories are stated at the lower of cost or net realisable value. Net realisable value is the market value. In evaluating whether inventories are stated at the lower of cost or net realisable value, management considers such factors as the amount of inventory on hand and in the distribution channel, estimated time required to sell such inventory, remaining shelf life, and current and expected market conditions, including levels of competition. If net realisable value is lower than the carrying amount a write down provision is recognised for the amount by which the carrying value exceeds its net realisable value. Inventory is valued at the lower of cost or market value using the FIFO method. Inventory is charged to the income statement as cost of sales as it is sold. |
1 Accounting policies (Tables)
1 Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | |
Schedule of entities | The consolidated financial statements consist of the results of the following entities: Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) In liquidation PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Dissolved - 2020 Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 November 2018) Trading company Dara Therapeutics, Inc. (until 1 November 2018) Dormant |
Schedule of intangibles assets useful economic lives | The significant intangibles recognised by the Group and their useful economic lives are as follows: Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years Product and marketing rights – Between 2 and 12 years |
Schedule of depreciation rates of property, plant and equipment | Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: Fixtures and fittings – 25% per annum straight line Leasehold improvements – the shorter of 10% per annum straight line or over the lease term Computer equipment – 25% per annum straight line Laboratory equipment – 15% – 25% per annum straight line Right of use asset – Economic life of contractual relationship |
3 Segment Information (Tables)
3 Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Schedule of revenue by geographical analysis | Geographical analysis of revenue by destination of customer 2020 £’000 2019 £’000 2018 £’000 Revenue from continuing operations: United Kingdom 4 197 149 Rest of Europe 114 55 – Rest of the World 62 60 – 180 312 149 Revenue from discontinued operations United States – – 3,882 |
Schedule of commercial segment | Within revenue from discontinued operations for 2018, reported in the consolidated statement of comprehensive income under loss from discontinued operations, four customers each accounted for at least 10% of revenue from discontinued operations: 2020 £’000 2019 £’000 2018 £’000 Customer A 64 % 63 % 100 % Customer B 34 % 19 % - Customer C 2 % 18 % - |
Schedule of segment | Segmented results for the year ended 31 December 2020 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 180 - 180 Grant revenue 163 - 163 Total revenue 343 - 343 Other income 12 - 12 Cost of sales - - - Research and development costs (4,886 ) - (4,886 ) Distribution costs, sales and marketing (6 ) - (6 ) Administrative costs (4,917 ) - (4,917 ) Depreciation (1,207 ) - (1,207 ) Amortisation (10 ) - (10 ) Impairment (12,369 ) (12,369 ) Loss from operations (23,040 ) - (23,040 ) Finance income 1 - 1 Finance expense (431 ) - (431 ) Loss before tax (23,470 ) - (23,470 ) Taxation 1,281 - 1,281 Loss for the year (22,189 ) - (22,189 ) Loss from continuing operations (22,189 ) Loss from discontinued operations - Segmented results for the year ended 31 December 2019 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 312 – 312 Grant revenue 362 – 362 Total revenue 674 – 674 Other income 15 – 15 Cost of sales – – - Research and development costs (6,624 ) – (6,624 ) Distribution costs, sales and marketing (323 ) – (323 ) Administrative costs (3,775 ) – (3,775 ) Loss from discontinued operations, net of tax – (947 ) (947 ) Depreciation (1,282 ) – (1,282 ) Amortisation (3 ) – (3 ) Loss from operations (11,318 ) (947 ) (12,265 ) Finance income 492 – 492 Finance expense (97 ) – (97 ) Loss before tax (10,923 ) (947 ) (11,870 ) Taxation 1,785 – 1,785 Loss for the year (9,138 ) (947 ) (10,085 ) Loss from continuing operations (9,138 ) Loss from discontinued operations (947 ) Segmented results for the year ended 31 December 2018 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 149 3,882 4,031 Grant revenue 1,789 – 1,789 Total revenue 1,938 3,882 5,820 Cost of sales – (1,286 ) (1,286 ) Research and development costs (8,555 ) (283 ) (8,838 ) Distribution costs, sales and marketing – (4,357 ) (4,357 ) Administrative costs (4,087 ) (872 ) (4,959 ) Loss on disposal of discontinued operations – (1,407 ) (1,407 ) Depreciation (1,011 ) (5 ) (1,016 ) Amortisation (100 ) (334 ) (434 ) Loss from operations (11,815 ) (4,662 ) (16,477 ) Finance income 2 – 2 Finance expense (587 ) – (587 ) Loss before tax (12,400 ) (4,662 ) (17,062 ) Taxation 2,032 – 2,032 Loss for the year (10,368 ) (4,662 ) (15,030 ) Loss from continuing operations (10,368 ) Loss from discontinued operations (4,662 ) |
Schedule of non-current assets by location of assets | Non-current assets by location of assets 2020 £’000 2019 £’000 2018 £’000 United Kingdom 542 12,775 12,966 Spain 4,383 1,860 542 17,158 14,826 |
4 Discontinued operations (Tabl
4 Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Schedule of cash flows from discontinued operations | During 2019 a claim was made by MPUS under the warranties provided by Midatech under the disposal agreement, see note 2. The statement of cash flows includes the following amounts relating to discontinued operations: 2020 £’000 2019 £’000 2018 £’000 Cash consideration received – – 9,350 Other consideration received – – – Total consideration received – – 9,350 Cash disposed of – – (91 ) Net cash inflow on disposal of discontinued operation – – 9,259 Net assets disposed (other than cash): – – 3 Property, plant and equipment – – 15,662 Intangibles – – 948 Inventory – – 629 Trade and other payables – – (2,734 ) Total net assets disposed of (other than cash) – – (14,508 ) Loss on disposal of discontinued operation before and after tax – – (5,249 ) Foreign exchange gain realised on disposal – – 3,842 Loss on disposal – – (1,407 ) |
Schedule of post-tax loss on disposal of discontinued operations | The post-tax loss on disposal of discontinued operations was determined as follows: Result of discontinued operations 2020 £’000 2019 £’000 2018 £’000 Revenue – – 3,882 Expenses other than finance costs – (947 ) (7,137 ) Finance costs – – – Impairment – – – Loss from discontinued operations before tax – (947 ) (3,255 ) Taxation – – – Loss on disposal of discontinued operations – – (1,407 ) Loss for the year from discontinued operations after tax – (947 ) (4,662 ) |
Schedule of amounts related to discontinued operations | Statement of cash flows 2020 £’000 2019 £’000 2018 £’000 The statement of cash flows includes the following amounts relating to Operating activities – – (5,368 ) Investing activities – (947 ) – Financing activities – – (7 ) Net cash flow from discontinued operations – (947 ) (5,375 ) |
5 Loss from operations (Tables)
5 Loss from operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loss From Operations | |
Schedule of loss from operations | 2020 £’000 2019 £’000 2018 £’000 Loss from operations is stated after charging/(crediting): Changes in inventories of finished goods and work in progress – – (976 ) Depreciation of property, plant and equipment – From continuing operations 1,089 979 1,011 – From discontinued operations – – 5 Depreciation of right of use asset – From continuing operations 118 303 – – From discontinued operations – – – Amortisation of intangible assets – product and marketing rights – From continuing operations 10 3 100 – From discontinued operations – – 334 Impairment of intangible assets 12,369 – – Fees payable to the Company’s auditor for the audit of the parent 87 110 111 Fees payable to the Company’s subsidiary auditors for the audits of the 43 48 143 Fees payable to the Company’s auditor for: – Other services 7 66 83 Fees payable to the Company’s previous auditor for the audit of the 15 – – Fees payable to the Company’s previous auditor for: - Other services 171 – – Operating lease expense: – Property – – 386 – Plant and machinery – – – Arrangement/penalty fees for loan facility – – 469 Foreign exchange(gain)/loss 96 131 212 Profit/(Loss) (226 ) – 165 Equity settled share-based payment (404 ) (34 ) (36 ) |
6 Staff costs (Tables)
6 Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Staff Costs | |
Schedule of staff costs | Staff costs (including Directors), for continuing and discontinued operations, comprise: 2020 £’000 2019 £’000 2018 £’000 Wages and salaries 2,727 2,762 5,393 Defined contribution pension cost (note 26 75 90 149 Social security contributions and similar taxes 397 565 639 Share-based payment (404 ) (34 ) (36 ) 2,795 3,383 6,145 Continuing operations 2,795 3,383 4,352 Discontinued operations - – 1,793 2,795 3,383 6,145 |
Schedule for average number of employed staff | The average number of staff employed by the Group during the financial year, for continuing and discontinued operations, amounted to: 2020 2019 2018 Research and development 31 52 63 General and administration 9 13 16 Sales and marketing - – 6 40 65 85 |
Schedule of key management personnel compensation | Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Company and the Chief Operating Officer. 2020 £’000 2019 £’000 2018 £’000 Wages and salaries 394 656 900 Defined contribution pension cost 24 42 39 Payments made to third parties 63 82 142 Social security contributions and similar taxes 29 72 77 Benefits in kind 16 2 3 526 854 1,161 Share-based payment (472 ) (58 ) (92 ) 54 796 1,069 |
Schedule of Director's emoluments | Emoluments disclosed above include the following amounts in respect of the highest paid Director. 2020 £’000 2019 £’000 2018 £’000 Salary 175 266 110 Total pension and other post-employment benefit costs 17 22 4 Benefits in kind 1 1 1 Termination benefits - - 99 193 289 214 |
7 Finance income and expense (T
7 Finance income and expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Finance Income And Expense | |
Schedule of finance income | 2020 £’000 2019 £’000 2018 £’000 Finance income Interest received on bank deposits 1 8 2 Gain on equity settled derivative financial liability – 484 – Total finance income 1 492 2 2020 £’000 2019 £’000 2018 £’000 Finance expense Bank loans – – 582 Interest expense on lease liabilities 20 30 5 Other loans 14 67 – Loss on equity settled derivative financial liability 397 – – Total finance expense 431 97 587 |
8 Taxation (Tables)
8 Taxation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxation Abstract | |
Schedule of components of income tax expense (benefit) | 2020 £’000 2019 £’000 2018 £’000 Current tax credit Current tax credited to the income statement 1,144 1,782 1,952 Taxation payable in respect of foreign subsidiary (21 ) – (67 ) Adjustment in respect of prior year 158 3 128 1,281 1,785 2,013 Deferred tax credit Reversal of temporary differences – – 19 Total tax credit 1,281 1,785 2,032 |
Schedule of difference between actual tax charge and the standard rate of corporation tax | The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows: 2020 £’000 2019 £’000 2018 £’000 Loss before tax (23,470 ) (11,870 ) (17,062 ) Expected tax credit based on the standard rate of United Kingdom (4,459 ) (2,255 ) (3,241 ) Expenses not deductible for tax purposes 596 1,087 2,492 Income not taxable (75 ) – – Unrelieved tax losses and other deductions – (114 ) – Adjustment in respect of prior period (158 ) (3 ) (129 ) Surrender of tax losses for R&D tax refund (491 ) (1,810 ) (1,955 ) Unrelieved tax losses and other deductions arising in the period – – (220 ) Foreign exchange differences – 1 (26 ) Deferred tax not recognised 3,306 1,309 1,047 Total tax credited to the income statement (1,281 ) (1,785 ) (2,032 ) |
9 Loss per share (Tables)
9 Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loss Per Share | |
Schedule of loss per share | 2020 £’000 2019 £’000 2018 £’000 Numerator Loss used in basic EPS and diluted EPS: Continuing operations (22,189 ) (9,138 ) (10,368 ) Discontinued operations – (947 ) (4,662 ) Denominator Weighted average number of ordinary shares used in basic EPS: 42,839,961 18,330,588 3,056,303 Basic and diluted loss per share: Continuing operations – pence (52 )p (50 )p (339 )p Discontinued operations – pence – (5 )p (153 )p |
10 Property, plant and equipm_2
10 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of detailed information about property, plant and equipment | Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Cost At 1 January 2018 252 2,112 342 3,669 – 6,375 Additions 4 106 40 353 – 503 Disposal (5 ) (229 ) – (401 ) – (635 ) Exchange differences 2 24 1 30 – 57 At 31 December 2018 253 2,013 383 3,651 – 6,300 Adoption of IFRS 16 Leases – – – – 395 395 Additions 4 137 23 223 822 1,209 Effect of modification to lease – – – – (82 ) (82 ) Exchange differences (9 ) (112 ) (3 ) (136 ) (11 ) (271 ) At 31 December 2019 248 2,038 403 3,738 1,124 7,551 Additions - 58 16 135 209 Effect of modification to lease (678 ) (678 ) Disposal (202 ) (2,184 ) (185 ) (2,323 ) (316 ) (5,210 ) Exchange differences 7 92 2 112 58 271 At 31 December 2020 53 4 236 1,662 188 2,143 Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Accumulated depreciation At 1 January 2018 196 1,238 192 2,220 – 3,846 Charge for the year 43 403 72 499 – 1,016 Disposals – (175 ) (3 ) (421 ) – (599 ) Exchange differences 2 19 4 28 – 53 At 31 December 2018 241 1,485 265 2,326 – 4,317 Charge for the year 2 400 70 507 303 1,282 Exchange differences (8 ) (91 ) (3 ) (93 ) (7 ) (202 ) At 31 December 2019 235 1,794 332 2,740 296 5,397 Charge for the year 9 310 50 720 118 1,207 Disposals (202 ) (2,183 ) (185 ) (2,300 ) (316 ) (5,186 ) Exchange differences 7 81 2 79 14 183 At 31 December 2020 49 2 199 1,239 112 1,601 Net book value At 31 December 2020 4 2 37 423 76 542 At 31 December 2019 13 244 71 998 828 2,154 At 31 December 2018 12 528 118 1,325 – 1,983 |
11 Leases (Tables)
11 Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Schedule of market rental rates | Right of Use Asset 2020 £’000 2019 £’000 At 1 January 828 395 Additions – 822 Effect of modification to lease terms (678 ) (82 ) Depreciation (118 ) (303 ) Exchange differences 44 (4 ) At 31 December 76 828 Lease Liabilities 2020 £’000 2019 £’000 At 1 January 907 546 Additions – 822 Effect of modification to lease terms (788 ) (82 ) Interest expenses 15 24 Lease payments (105 ) (391 ) Exchange differences 47 (12 ) At 31 December 76 907 |
Schedule of leases | The group had commitments under non-cancellable operating leases as set out below, from 1 January 2019, the group has recognised right-of-use assets for these leases, exception for low value leases. Land and Buildings £’000 Other £’000 2020 Expiring In one year or less - - Expiring over one year - - - - 2019 Expiring In one year or less - - Expiring over one year - - - - 2018 Expiring In one year or less 383 1 Expiring over one year 189 4 572 5 |
Schedule of low value leases expense | Low value leases expensed in year: 2020 £’000 2019 £’000 Low value leases expensed 10 29 10 29 |
12 Intangible assets (Tables)
12 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill [abstract] | |
Schedule of reconciliation of changes in intangible assets and goodwill | In-process £’000 Product and £’000 Goodwill £’000 IT/Website £’000 Total £’000 Cost At 1 January 2018 13,378 19,856 13,444 27 46,705 Disposals – (21,022 ) (11,808 ) – (32,830 ) Foreign exchange – 1,166 655 1 1,822 At 31 December 2018 13,378 – 2,291 28 15,697 Additions – – – 9 9 Foreign exchange – – – (2 ) (2 ) At 31 December 2019 13,378 – 2,291 35 15,704 Disposal – – – (36 ) (36 ) Foreign exchange – – – 1 1 At 31 December 2020 13,378 – 2,291 – 15,669 In-process research and development £’000 Product and marketing rights £’000 Goodwill £’000 IT/Website Costs £’000 Total £’000 Accumulated amortisation and At 1 January 2018 3,300 15,739 – 19 19,058 Amortisation charge for the year – 431 – 3 434 Disposal – (17,103 ) – – (17,103 ) Foreign exchange – 933 – 1 934 At 31 December 2018 3,300 – – 23 3,323 Amortisation charge for the year – – – 3 3 Foreign exchange – – – (1 ) (1 ) At 31 December 2019 3,300 – – 25 3,325 Amortisation charge for the year – – – 10 10 Disposal – – – (36 ) (36 ) Impairment 10,078 – 2,291 12,369 Foreign exchange – – – 1 1 At 31 December 2020 13,378 – 2,291 – 15,669 Net book value At 31 December 2020 – – – – – At 31 December 2019 10,078 – 2,291 10 12,379 At 31 December 2018 10,078 – 2,291 5 12,374 |
Schedule of individual intangible assets | The individual intangible assets, excluding goodwill, which are material to the financial statements are: Carrying amount Remaining amortisation 2020 £’000 2019 £’000 2018 £’000 2020 (years) 2019 (years) 2018 (years) Midatech Pharma (Wales) Limited acquired IPRD – 9,300 9,300 n/a n/a in process n/a in process Midatech Pharma US, Inc., product and marketing – – – n/a n/a n/a Zuplenz® product and marketing rights – – – n/a n/a n/a MTX110 acquired IPRD – 778 778 n/a n/a in process n/a in process – 10,078 10,078 |
13 Impairment testing (Tables)
13 Impairment testing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Impairment Testing | |
Schedule of cash generating unit | Details of goodwill and IPRD allocated to the acquired cash generating unit and the valuation basis are as follows: Indefinite lived IPRD carrying amount Goodwill carrying amount Name 2020 £’000 2019 £’000 2018 £’000 2020 £’000 2019 £’000 2018 £’000 Valuation Basis CGU – Midatech Pharma (Wales) Ltd – 9,300 9,300 – 2,291 2,291 Value in use MTX110 acquired IPRD – 778 778 – – – – |
Schedule of key assumptions used | The key assumptions used in the valuation model examining the MPW Ltd cash generating unit include the following: Assumptions 2020 2019 2018 Pre-tax discount rate n/a 18.4 % 17.7 % Cumulative probability of success of projects n/a 81 % 81 % |
Schedule of key assumptions used for carrying value and recoverable amount | If any one of the following changes were made to the above key assumptions, the carrying value and recoverable amount would be equal. Assumptions 2020 2019 2018 Pre-tax discount rate for all projects n/a increase to increase to Cumulative probability of success of project n/a 59 % 34 % |
14 Subsidiaries (Tables)
14 Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries | |
Schedule of subsidiaries | The subsidiaries of Midatech Pharma plc, all of which are 100% owned, either directly or through subsidiaries where indicated, and have been included in these financial statements in accordance with the details set out in the basis of preparation and basis of consolidation note 1, are as follows: Name Registered Office Nature of Business Notes Midatech Limited Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA Trading company Midatech Pharma (España) SL Parque Tecnológico de Vizcaya, Edificio 800 Planta 2, Derio, 48160, Vizcaya, Spain In liquidation (a) PharMida AG c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland Dormant (a) (b) Midatech Pharma (Wales) Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA Trading Midatech Pharma PTY Dissolved - 2020 (c) Notes: (a) Wholly owned subsidiary of Midatech Limited. (b) PharMida AG became dormant in January 2016. (c) Midatech Pharma PTY was incorporated on 16 February 2015 and dissolved November 2020. |
15 Trade and other receivables
15 Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables [abstract] | |
Schedule of trade and other receivables | 2020 £’000 2019 £’000 2018 £’000 Trade receivables 95 22 89 Prepayments 258 151 139 Other receivables 219 3,444 1,564 Total trade and other receivables 572 3,617 1,792 Less: non-current portion (rental deposit and on bond) – (2,625 ) (469 ) Current portion 572 992 1,323 |
16 Cash and cash equivalents _2
16 Cash and cash equivalents and cash flow supporting notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents And Cash Flow Supporting Notes | |
Schedule of cash and cash equivalents | Cash and cash equivalents for purposes of the consolidated statement of cash flows comprises: 2020 £’000 2019 £’000 2018 £’000 Cash at bank available on demand 7,546 10,928 2,343 |
Schedule of cash inflows from an equity financing transaction | During 2020 and 2019, cash inflows arose from equity financing transactions, included within financing activities on the face of the cash flow statement. As part of the equity transaction in May 2020 warrants to the value of £1.0m (October 2019 : £1.1m) were issued as disclosed in note 21. 2020 £’000 2019 £’000 2018 £’000 Gross proceeds 10,792 15,767 – Transaction costs (1,050 ) (1,659 ) – 9,742 14,108 – |
Schedule of changes in bank loan liabilities | The following changes in loans and borrowings arose as a result of financing activities during the year: Non-current £’000 Current £’000 Total £’000 At 1 January 2020 5,670 412 6,082 Cash flows (6,182 ) (258 ) (6,440 ) Non-cashflows: Foreign Exchange 252 23 275 Fair value changes 1,176 -– 1,176 Effect of modification to lease term – IFRS 16 (877 ) 89 (788 ) Loans and borrowings classified as non-current 31 December 2019 51 (51 ) – Interest accruing in period (30 ) (15 ) (45 ) At 31 December 2020 60 200 260 Non-current £’000 Current £’000 Total £’000 At 1 January 2019 884 368 1,252 Cash flows 5,575 (1,027 ) 4,548 Non-cashflows: Foreign Exchange (42 ) (29 ) (71 ) Fair value changes (1,139 ) – (1,139 ) Adoption of IFRS16 leases 163 383 546 Effect of modification to lease term – IFRS 16 – (82 ) (82 ) New leases 805 95 900 Loans and borrowings classified as non-current 31 December 2018 (685 ) 685 – Transfer to grant income – (14 ) (14 ) Interest accruing in period 108 34 142 At 31 December 2019 5,670 412 6,082 Non-current £’000 Current £’000 Total £’000 At 1 January 2018 6,185 361 6,546 Cash flows (5,580 ) (305 ) (5,885 ) Non- cashflows: Foreign Exchange 296 4 300 New leases 168 76 244 Loans and borrowings classified as non-current 31 December 2018 (232 ) 232 – Interest accruing in period 47 – 47 At 31 December 2018 884 368 1,252 |
17 Inventories (Tables)
17 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Inventories Abstract | |
Schedule of inventories | 2020 £’000 2019 £’000 2018 £’000 Finished goods – – – Total inventories – – – |
18 Trade and other payables (Ta
18 Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables [abstract] | |
Schedule of trade and other payables | Current 2020 £’000 2019 £’000 2018 £’000 Trade payables 337 725 286 Other payables 26 13 – Accruals 768 1,765 1,025 Total financial liabilities, excluding loans and borrowings, 1,131 2,503 1,311 Tax and social security 31 86 347 Deferred revenue and government grants 68 1,905 445 Total trade and other payables 1,230 4,494 2,103 |
19 Borrowings (Tables)
19 Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Schedule of borrowings | 2020 £’000 2019 £’000 2018 £’000 Current Bank loans – – 4 Lease liabilities 93 233 80 Government and research loans 107 179 284 Total 200 412 368 Non-current Bank loans – – – Lease liabilities 60 912 170 Government and research loans – 4,758 714 Total 60 5,670 884 |
20 Provisions (Tables)
20 Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Schedule of provisions | 2020 £’000 2019 £’000 2018 £’000 Opening provision at 1 January 97 165 – Provision (released)/recognised in the year (47 ) (68 ) 165 At 31 December 50 97 165 Less: non-current portion (50 ) – (165 ) Current portion – 97 – |
21 Derivative financial liabi_2
21 Derivative financial liability - current (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | |
Schedule of derivative financial liability | 2020 £’000 2019 £’000 2018 £’000 Equity settled derivative financial liability At 1 January 664 – – Warrants issued 997 1,148 – Transfer to share premium on exercise of warrants (499 ) Gain recognised in finance income within the consolidated statement 397 (484 ) – At 31 December 1,559 664 – |
22 Financial instruments - ri_2
22 Financial instruments - risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of consolidated derivative financial instruments | Financial assets – amortised cost 2020 £’000 2019 £’000 2018 £’000 Cash and cash equivalents 7,546 10,928 2,343 Trade receivables 95 22 89 Other receivables – 2,625 469 Total financial assets 7,641 13,575 2,901 Financial liabilities – amortised cost 2020 £’000 2019 £’000 2018 £’000 Trade payables 337 725 286 Other payables 26 13 – Accruals 768 1,765 1,025 Borrowings 260 6,082 1,252 Total financial liabilities – amortised cost 1,391 8,585 2,563 Financial liabilities – fair value through profit and loss – current 2020 £’000 2019 £’000 2018 £’000 Equity settled derivative financial liability 1,559 664 – |
Schedule of consolidated financial assets and liabilities at fair value | The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 21: Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled financial derivative liability £1,187,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.07% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability £372,000 Level 3 Monte Carlo simulation model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.08% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Equity settled financial derivative liability – Level 3 Black-Scholes option pricing model Volatility rate of 105.0% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate of 0.8% determined using the expected life assumptions. The higher the risk-free rate the higher the fair value. Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled financial derivative liability £664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled financial derivative liability – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Financial Fair value Fair value Valuation Significant unobservable input(s) Relationship of Equity settled financial derivative liability – Level 3 Black-Scholes option pricing model Volatility rate of 42.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 7.6 years determined using the remaining life of the share options. The shorter the expected life the Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. The higher the |
Schedule of foreign exchange risk | The table below shows analysis of the Pounds Sterling equivalent of year-end cash and cash equivalent balances by currency: 2020 £’000 2019 £’000 2018 £’000 Cash and cash equivalents: Pounds Sterling 7,247 3,153 457 US Dollar 120 2,021 1,421 Euro 179 5,750 459 Other - 4 6 Total 7,546 10,928 2,343 The table below shows the foreign currency exposure that gives rise to net currency gains and losses recognised in the consolidated statement of comprehensive income. Such exposures comprise the net monetary assets and monetary liabilities of the Group that are not denominated in the functional currency of the relevant Group entity. As at 31 December, these exposures were as follows: 2020 £’000 2019 £’000 2018 £’000 Net Foreign Currency Assets/(Liabilities): US Dollar 120 2,021 1,421 Euro 54 1,460 552 Other 1 7 8 Total 175 3,488 1,981 |
Schedule of foreign currency exchange rates | The following table details the Group’s sensitivity to a 10% change in year-end exchange rates, which the Group feels is the maximum likely change in rate based upon recent currency movements, in the key foreign currency exchange rates against Pounds Sterling: Year ended 31 December 2020 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 12 (293 ) (4 ) Total equity 12 (293 ) (4 ) Year ended 31 December 2019 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 202 54 – Total equity 202 31 1 Year ended 31 December 2018 US Dollar £’000 Euro £’000 Other £’000 Loss before tax – 168 – Total equity 142 168 – |
Schedule of contractual maturities of financial liabilities | The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: 2020 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,131 – – – – Bank loans – – – – – Lease liabilities 25 75 61 8 Government research loans 107 – – – – Total 1,263 75 61 8 2019 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 2,503 – – – – Bank loans – – – – – Lease liabilities 79 165 317 735 – Government research loans – 272 238 2,851 3,317 Total 2,582 437 555 3,586 3,317 2018 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,311 – – – – Bank loans 3 2 – – – Finance leases 22 65 79 117 – Government research loans 44 240 406 414 – Total 1,380 307 485 531 – |
23 Deferred tax (Tables)
23 Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Tax | |
Schedule of unused tax losses carried forward | Unused tax losses carried forward, subject to agreement with local tax authorities, were as follows: Gross £’000 Potential £’000 31 December 2020 63,183 13,076 31 December 2019 49,565 8,426 31 December 2018 40,741 6,926 |
Schedule of deferred tax liability | Details of the deferred tax liability are as follows: 2020 Asset £’000 Liability £’000 Net £’000 Business Combinations – – – 2019 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,581 (1,581 ) – 2018 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,690 (1,690 ) – |
24 Share capital (Tables)
24 Share capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of classes of share capital [abstract] | |
Schedule of detailed information about share capital | Authorised, allotted and 2020 Number 2020 £ 2019 Number 2019 £ 2018 Number 2018 £ At 31 December Ordinary shares of 63,073,852 63,074 23,494,981 23,495 3,059,207 3,059 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,063,075 1,023,496 1,003,060 |
Schedule of detailed information about type of Share Issue | The Company has the authority to purchase the deferred shares and may require the holder of the deferred shares to sell them for a price not exceeding 1p for all the deferred shares. Ordinary Shares Number Deferred Shares Number Share £ Total £’000 At 1 January 2018 3,054,207 1,000,001 69,870 2018 1 August 2018 Share issue to SIPP trustee (see note 27) 5,000 0.001 – At 31 December 2018 3,059,207 1,000,001 69,870 2019 26 February 2019 Subscription, Placing and Open Offer 17,410,774 0.77 13,406 8 October 2019 Share issue to SIPP trustee (see note 27) 25,000 0.001 – 29 October 2019 Registered Direct Offering 3,000,000 0.7874 2,362 At 31 December 2019 23,494,981 1,000,001 85,638 2020 18 May 2020 Placing & Registered Direct Offering 15,757,576 0.27 4,255 27 July 2020 Placing 21,296,295 0.27 5,750 19 August 2020 Exercise of warrants 2,500,000 783 30 September 2020 Share issue to SIPP trustee (see note 27) 25,000 0.001 – At 31 December 2020 63,073,852 1,000,001 96,426 |
25 Reserves (Tables)
25 Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reserves | |
Schedule of reserves | The following describes the nature and purpose of each reserve within equity: Reserve Description and purpose Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling. Warrant reserve Represents the fair value of warrants denominated in £ at the date of grant. Accumulated deficit All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
27 Share-based Payments (Tables
27 Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payments | |
Schedule of outstanding granted options | Details of all share options granted under the Schemes are set out below: Date of grant At 1 January Granted in 2020 Exercised Forfeited At 31 December Exercise Price 1 April 2010 1,255 – – (1,255 ) – £ 80.00 20 August 2010 2,088 – – (2,088 ) – £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 18,500 – – (18,000 ) 500 £ 1.50 11 July 2014 100 – – (100 ) – £ 1.50 31 October 2016 16,271 – – (8,350 ) 7,921 £ 53.60 14 December 2016 400 – – (400 ) – £ 31.00 14 December 2016 500 – – (500 ) – £ 34.00 14 December 2016 2,000 – – (2,000 ) – £ 37.40 14 December 2016 1,625 – – (1,625 ) – £ 37.60 15 December 2016 4,600 – – (4,600 ) – £ 24.20 19 December 2016 22,391 – – (12,373 ) 10,018 £ 24.20 15 December 2017 29,560 – – (26,260 ) 3,300 £ 9.20 2 April 2018 997 – – (997 ) – £ 16.60 2 April 2018 4,500 – – (4,500 ) – £ 24.20 24 April 2019 169,500 – – (124,000 ) 45,500 £ 1.46 2 October 2019 50,000 – – (20,000 ) 30,000 £ 1.05 17 April 2020 – 100,000 – – 100,000 £ 0.24 17 June 2020 – 1,363,000 – (89,000 ) 1,274,000 £ 0.202 336,026 1,463,000 – (316,048 ) 1,482,978 Options exercisable at 31 December 2020 195,171 Weighted average exercise price of outstanding options at 31 December 2020 £ 0.835 Weighted average exercise price of options exercised in 2020 n/a Weighted average exercise price of options forfeited in 2020 £ 7.192 Weighted average exercise price of options granted in 2020 £ 0.205 Weighted average remaining contractual life of outstanding options at 31 December 2020 9.2 Date of grant At 1 January Granted in 2019 Exercised Forfeited At 31 December Exercise Price 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 21,500 – – (3,000 ) 18,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – (2,500 ) – £ 34.20 31 October 2016 23,411 – – (7,140 ) 16,271 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 1,625 – – – 1,625 £ 37.60 15 December 2016 4,600 – – – 4,600 £ 24.20 19 December 2016 35,866 – – (13,475 ) 22,391 £ 24.20 15 December 2017 45,885 – – (16,325 ) 29,560 £ 9.20 2 April 2018 997 – – – 997 £ 16.60 2 April 2018 4,500 – – – 4,500 £ 24.20 24 April 2019 – 219,000 – (49,500 ) 169,500 £ 1.46 2 October 2019 – 50,000 – – 50,000 £ 1.05 158,966 269,000 – (91,940 ) 336,026 Options exercisable at 31 December 2019 131,094 Weighted average exercise price of outstanding options at 31 December 2019 £ 8.48 Weighted average exercise price of options exercised in 2019 n/a Weighted average exercise price of options forfeited in 2019 £ 13.26 Weighted average exercise price of options granted in 2019 £ 1.38 Weighted average remaining contractual life of outstanding options at 31 December 2019 7.9 years Date of grant At 1 January Granted in 2018 Exercised Forfeited At 31 December Exercise Price 31 December 2008 1,306 – – (1,306 ) – £ 28.50 31 December 2008 150 – – (150 ) – £ 79.70 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,789 – – (200 ) 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 44,000 – – (22,500 ) 21,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – – 2,500 £ 34.20 31 October 2016 30,380 – – (6,969 ) 23,411 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 2,000 – – (375 ) 1,625 £ 37.60 15 December 2016 5,100 – – (500 ) 4,600 £ 24.20 19 December 2016 55,210 – – (19,344 ) 35,866 £ 24.20 15 December 2017 67,560 – – (21,675 ) 45,885 £ 9.20 2 April 2018 – 997 – – 997 £ 16.60 2 April 2018 – 4,500 – – 4,500 £ 24.20 226,488 5,497 – (73,019 ) 158,966 Options exercisable at 31 December 2018 112,393 Weighted average exercise price of outstanding options at 31 December 2018 £ 22.02 Weighted average exercise price of options exercised in 2018 n/a Weighted average exercise price of options forfeited in 2018 £ 15.98 Weighted average exercise price of options granted in 2018 £ 16.60 Weighted average remaining contractual life of outstanding options at 31 December 2018 5.7 years |
Schedule of fair value of options granted | The following information is relevant in the determination of the fair value of options granted during the year 2020 under the equity share based remuneration schemes operated by the Group. April 2020 June 2020 Number of options 100,000 1,363,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 0.24 * £ 0.213 * Exercise price of options issued in year £ 0.24 £ 0.202 Contractual life 10 years 10 years Expected life 5 years 5 years Volatility 84.76 %** 92.55 %** Expected dividend yield 0 % 0 % Risk free rate 0.11 % 0.10 % * The share price used in the determination of the fair value of the options granted in 2020 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2019 under the equity share based remuneration schemes operated by the Group. April 2019 October 2019 Number of options 219,000 50,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 2.30 * £ 1.126 * Exercise price of options issued in year £ 1.46 £ 1.05 Contractual life 10 years 10 years Expected life 5 years 5 years Volatility 75.3 %** 78.3 %** Expected dividend yield 0 % 0 % Risk free rate 0.85 % 0.26 % * The share price used in the determination of the fair value of the options granted in 2019 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2018 under the equity share based remuneration schemes operated by the Group. 2018 Number of options 5,500 Option pricing models used Monte-Carlo Share price £ 5.40 * Exercise price of options issued in year £16.60–£24.40 Contractual life 10 years Expected life 5 years Volatility 45.2 %** Expected dividend yield 0 % Risk free rate 1.03 % * The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. |
29 Related party transactions (
29 Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of related party transactions | During the year Group companies entered into the following transactions with related parties who are not members of the Group. Purchase of good Amounts owed by related parties 2020 €’000 2019 €’000 2018 €’000 2020 €’000 2019 €£’000 2018 €’000 BioConnection BV 296 18 – – 8 – |
32. Results of Midatech Pharma
32. Results of Midatech Pharma (Espana) SL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Results Of Midatech Pharma Espana Sl | |
Schedule of unaudited results | The unaudited Year ended £’000 Grant revenue 163 Total revenue 163 Research and development costs (2,820 ) Administrative costs (1,146 ) Loss from operations (3,803 ) Finance expense (11 ) Loss before tax (3,814 ) Taxation (21 ) Loss from operations after tax (3,835 ) |
1 Accounting policies (Details)
1 Accounting policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) |
Summary description | In liquidation |
PharMida AG [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | PharMida AG |
Summary description | Dormant |
Midatech pharma (wales) limited [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma (Wales) Limited (formerly Q Chip Limited) |
Summary description | Trading company |
Midatech pharma PTY [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma Pty |
Summary description | Dissolved - 2020 |
Midatech pharma plc [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma plc |
Summary description | Ultimate holding company |
Midatech pharma US, inc. (formerly DARA biosciences, inc.) [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 November 2018) |
Summary description | Trading company |
Dara therapeutics, inc. [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Dara Therapeutics, Inc. (until 1 November 2018) |
Summary description | Dormant |
Midatech limited [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Limited |
Summary description | Trading company |
1 Accounting policies (Details
1 Accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | Indefinite life |
In-process research and development ("IPRD") [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | In process, not yet amortising |
IT and website costs [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | 4 years |
Product and marketing rights [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | Between 2 and 12 years |
1 Accounting policies (Detail_2
1 Accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2020 | |
Fixtures and fittings [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 25% per annum straight line |
Leasehold improvements [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | the shorter of 10% per annum straight line or over the lease term |
Computer equipment [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 25% per annum straight line |
Laboratory equipment [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 15% - 25% per annum straight line |
Right of use asset [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | Economic life of contractual relationship |
1 Accounting policies (Detail_3
1 Accounting policies (Details Narrative) £ / shares in Units, £ in Thousands | Mar. 02, 2020£ / shares | Dec. 31, 2020GBP (£)Number£ / shares | Dec. 31, 2019GBP (£) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Accumulated deficit | £ (122,432) | £ (99,839) | £ (89,720) | ||
Loss for the year | (22,189) | (10,085) | (15,030) | ||
Net cash used in operating activities | (9,301) | (6,489) | (13,450) | ||
Cash and cash equivalents | 7,546 | 10,928 | 2,343 | £ 13,204 | |
Impairment charge on non financial assets | |||||
Description of stock split | Ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. | ||||
Goodwill | £ 0 | 2,300 | 2,300 | ||
Ordinary shares [member] | |||||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Share par value (in dollars per share) | £ / shares | £ 0.001 | £ 100 | |||
In-process research and development ("IPRD") [member] | Midatech pharma (wales) limited [member] | |||||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Impairment charge on non financial assets | £ 9,300 | £ 0 | £ 0 | ||
Equity offering | £ 9,300 | ||||
Number of cash generating unit | Number | 800 | ||||
Goodwill | £ 2,300 |
2 Critical accounting estimat_2
2 Critical accounting estimates and judgements (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Goodwill | £ 0 | £ 2,300 | £ 2,300 | |
Intangible assets other than goodwill | 0 | 10,100 | 10,100 | |
Impairment charge on non financial assets | ||||
Unused tax losses for which no deferred tax asset recognised | 63,200 | 49,600 | 40,700 | |
Cash and cash equivalents | 7,546 | 10,928 | 2,343 | £ 13,204 |
Loss for the year attributable to the owners of the parent | (22,189) | (10,085) | (15,030) | |
Net cash used in operating activities | (9,301) | (6,489) | (13,450) | |
Accumulated deficit | (122,432) | (99,839) | (89,720) | |
Impairment charge | 2,300 | £ 0 | 0 | |
SPAIN | Lease [member] | ||||
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Lease maturity terms | 5 years | |||
Description of lease terms | The lease allowed the Group to break the lease at any-time with one-month notice, provided it returned the property to its original condition. | |||
Midatech pharma [member] | ||||
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Termination of property lease | 109,000 | |||
Midatech pharma (wales) limited [member] | In-process research and development ("IPRD") [member] | ||||
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Goodwill | 2,300 | |||
Impairment charge on non financial assets | 9,300 | £ 0 | £ 0 | |
Impairment charge | £ 800 |
3 Segment Information (Details)
3 Segment Information (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Revenue | £ 180 | £ 312 | £ 149 |
Continuing operations [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 180 | 312 | 149 |
Continuing operations [member] | UNITED KINGDOM | |||
Disclosure of operating segments [line items] | |||
Revenue | 4 | 197 | 149 |
Continuing operations [member] | Rest of europe [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 114 | 55 | |
Continuing operations [member] | Rest of the world [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 62 | 60 | |
Discontinued operations [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 180 | 312 | 4,031 |
Discontinued operations [member] | UNITED STATES | |||
Disclosure of operating segments [line items] | |||
Revenue | £ 3,882 |
3 Segment Information (Details
3 Segment Information (Details 1) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customers A [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue in excess of 10% | 64.00% | 63.00% | 100.00% |
Customers B [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue in excess of 10% | 34.00% | 19.00% | |
Customers C [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue in excess of 10% | 2.00% | 18.00% |
3 Segment Information (Detail_2
3 Segment Information (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Revenue | £ 180 | £ 312 | £ 149 |
Grant revenue | 163 | 362 | 1,789 |
Total revenue | 343 | 674 | 1,938 |
Other income | 12 | 15 | |
Research and development costs | (6,068) | (7,843) | (9,359) |
Distribution costs, sales and marketing | (6) | (323) | |
Administrative costs | (4,952) | (3,841) | (4,394) |
Depreciation | (1,089) | (979) | (1,016) |
Impairment | (12,369) | ||
Loss from operations | (23,040) | (11,318) | (11,815) |
Finance income | 1 | 492 | 2 |
Finance expense | (431) | (97) | (587) |
Loss before tax | (23,470) | (10,923) | (12,400) |
Taxation | 1,281 | 1,785 | 2,032 |
Loss for the year | (22,189) | (10,085) | (15,030) |
Loss from continuing operations | (22,189) | (9,138) | (10,368) |
Loss from discontinued operations | (947) | (4,662) | |
Discontinued operations [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 180 | 312 | 4,031 |
Grant revenue | 163 | 362 | 1,789 |
Total revenue | 343 | 674 | 5,820 |
Other income | 12 | 15 | |
Cost of sales | (1,286) | ||
Research and development costs | (4,886) | (6,624) | (8,838) |
Distribution costs, sales and marketing | (6) | (323) | (4,357) |
Administrative costs | (4,917) | (3,775) | (4,959) |
Loss from discontinued operations, net of tax | (947) | (1,407) | |
Depreciation | (1,207) | (1,282) | (1,016) |
Amortisation | (10) | (3) | (434) |
Impairment | (12,369) | ||
Loss from operations | (23,040) | (12,265) | (16,477) |
Finance income | 1 | 492 | 2 |
Finance expense | (431) | (97) | (587) |
Loss before tax | (23,470) | (11,870) | (17,062) |
Taxation | 1,281 | 1,785 | 2,032 |
Loss for the year | (22,189) | (10,085) | (15,030) |
Loss from continuing operations | (22,189) | (9,138) | (10,368) |
Loss from discontinued operations | (947) | (4,662) | |
Pipeline R&D [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 180 | 312 | 149 |
Grant revenue | 163 | 362 | 1,789 |
Total revenue | 343 | 674 | 1,938 |
Other income | 12 | 15 | |
Cost of sales | |||
Research and development costs | (4,886) | (6,624) | (8,555) |
Distribution costs, sales and marketing | (6) | (323) | |
Administrative costs | (4,917) | (3,775) | (4,087) |
Loss from discontinued operations, net of tax | |||
Depreciation | (1,207) | (1,282) | (1,011) |
Amortisation | (10) | (3) | (100) |
Impairment | (12,369) | ||
Loss from operations | (23,040) | (11,318) | (11,815) |
Finance income | 1 | 492 | 2 |
Finance expense | (431) | (97) | (587) |
Loss before tax | (23,470) | (10,923) | (12,400) |
Taxation | 1,281 | 1,785 | 2,032 |
Loss for the year | (22,189) | (9,138) | (10,368) |
Commercial [Member] | Discontinued operations [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,882 | ||
Grant revenue | |||
Total revenue | 3,882 | ||
Other income | |||
Cost of sales | (1,286) | ||
Research and development costs | (283) | ||
Distribution costs, sales and marketing | (4,357) | ||
Administrative costs | (872) | ||
Loss from discontinued operations, net of tax | (947) | (1,407) | |
Depreciation | (5) | ||
Amortisation | (334) | ||
Impairment | |||
Loss from operations | (947) | (4,662) | |
Finance income | |||
Finance expense | |||
Loss before tax | (947) | (4,662) | |
Taxation | |||
Loss for the year | £ (947) | £ (4,662) |
3 Segment Information (Detail_3
3 Segment Information (Details 3) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | |||
Non-current assets | £ 542 | £ 17,158 | £ 14,826 |
SPAIN | |||
Disclosure of operating segments [line items] | |||
Non-current assets | 4,383 | 1,860 | |
UNITED KINGDOM | |||
Disclosure of operating segments [line items] | |||
Non-current assets | £ 542 | £ 12,775 | £ 12,966 |
3 Segment Information (Detail_4
3 Segment Information (Details Narrative) - Number | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Continuing operations [member] | |||
Disclosure of operating segments [line items] | |||
Number of reportable operating segments | 3 | 3 | 1 |
Discontinued operations [member] | |||
Disclosure of operating segments [line items] | |||
Number of customer accounted least 10% of total revenue | 4 |
4 Discontinued operations (Deta
4 Discontinued operations (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net cash inflow on disposal of discontinued operation | £ 947 | ||
Property, plant and equipment | 542 | 2,154 | 1,983 |
Intangibles | 0 | 10,100 | 10,100 |
Inventory | |||
Trade and other payables | 1,230 | 4,494 | 2,103 |
Loss on disposal | 1,407 | ||
Discontinued operations [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Cash consideration received | 9,350 | ||
Other consideration received | |||
Total consideration received | 9,350 | ||
Cash disposed of | (91) | ||
Net cash inflow on disposal of discontinued operation | 9,259 | ||
Net assets disposed (other than cash): | 3 | ||
Property, plant and equipment | 15,662 | ||
Intangibles | 948 | ||
Inventory | 629 | ||
Trade and other payables | (2,734) | ||
Total net assets disposed of (other than cash) | (14,508) | ||
Loss on disposal of discontinued operation before and after tax | (5,249) | ||
Foreign exchange gain realised on disposal | 3,842 | ||
Loss on disposal | £ (1,407) |
4 Discontinued operations (De_2
4 Discontinued operations (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |||
Revenue | £ 3,882 | ||
Expenses other than finance costs | (947) | (7,137) | |
Finance costs | |||
Impairment | |||
Loss from discontinued operations before tax | (947) | (3,255) | |
Taxation | |||
Loss on disposal of discontinued operations | (1,407) | ||
Loss for the year from discontinued operations after tax | £ (947) | £ (4,662) |
4 Discontinued operations (De_3
4 Discontinued operations (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating activities | £ (9,301) | £ (6,489) | £ (13,450) |
Investing activities | 2,574 | (3,807) | 9,042 |
Financing activities | 3,084 | 18,733 | (6,472) |
Discontinued operations [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating activities | (5,368) | ||
Investing activities | (947) | ||
Financing activities | (7) | ||
Net cash flow from discontinued operations | £ (947) | £ (5,375) |
4 Discontinued operations (De_4
4 Discontinued operations (Details Narrative) - Barings LLC [Member] £ in Thousands | 12 Months Ended |
Dec. 31, 2020GBP (£) | |
Disclosure of analysis of single amount of discontinued operations [line items] | |
Total consideration received | £ 19,000 |
Contingent payable | £ 6,000 |
5 Loss from operations (Details
5 Loss from operations (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss from operations is stated after charging/(crediting): | |||
Changes in inventories of finished goods and work in progress | £ (976) | ||
Depreciation of property, plant and equipment | |||
From continuing operations | 1,089 | 979 | 1,011 |
From discontinued operations | 5 | ||
Depreciation of right of use asset | |||
From continuing operations | 118 | 303 | |
From discontinued operations | |||
Amortisation of intangible assets product and marketing rights | |||
From continuing operations | 10 | 3 | 100 |
From discontinued operations | 334 | ||
Impairment of intangible assets | 12,369 | ||
Fees payable to the Company's auditor for the audit of the parent Company | 87 | 110 | 111 |
Fees payable to the Company's subsidiary auditors for the audits of the subsidiary accounts | 43 | 48 | 143 |
Fees payable to the Company's auditor for: | |||
Other services | 7 | 66 | 83 |
Fees payable to the Company's previous auditor for the audit of the parent Company | 15 | ||
Fees payable to the Company's previous auditor for: | |||
Other services | 171 | ||
Operating lease expense: | |||
Property | 386 | ||
Plant and machinery | |||
Arrangement/penalty fees for loan facility | 469 | ||
Foreign exchange(gain)/loss | 96 | 131 | 212 |
Profit/(Loss) on disposal of property, plant and equipment | (226) | 165 | |
Equity settled share-based payment | £ (404) | £ (34) | £ (36) |
6 Staff costs (Details)
6 Staff costs (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Staff Costs | |||
Wages and salaries | £ 2,727 | £ 2,762 | £ 5,393 |
Defined contribution pension cost (note 26) | 75 | 90 | 149 |
Social security contributions and similar taxes | 397 | 565 | 639 |
Share-based payment | (404) | (34) | (36) |
Staff costs gross | 2,795 | 3,383 | 6,145 |
Continuing operations | 2,795 | 3,383 | 4,352 |
Discontinued operations | 1,793 | ||
Staff costs | £ 2,795 | £ 3,383 | £ 6,145 |
6 Staff costs (Details 1)
6 Staff costs (Details 1) - Number | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
DiscloureOfStaffCostsAbstractLineItems [Line Items] | |||
Average number of staff employee | 40 | 65 | 85 |
Research and development [member] | |||
DiscloureOfStaffCostsAbstractLineItems [Line Items] | |||
Average number of staff employee | 31 | 52 | 63 |
General and administration [member] | |||
DiscloureOfStaffCostsAbstractLineItems [Line Items] | |||
Average number of staff employee | 9 | 13 | 16 |
Sales and marketing [member] | |||
DiscloureOfStaffCostsAbstractLineItems [Line Items] | |||
Average number of staff employee | 6 |
6 Staff costs (Details 2)
6 Staff costs (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Staff Costs | |||
Wages and salaries | £ 394 | £ 656 | £ 900 |
Defined contribution pension cost | 24 | 42 | 39 |
Payments made to third parties | 63 | 82 | 142 |
Social security contributions and similar taxes | 29 | 72 | 77 |
Benefits in kind | 16 | 2 | 3 |
Total | 526 | 854 | 1,161 |
Share-based payment | (472) | (58) | (92) |
Key management personnel compensation | £ 54 | £ 796 | £ 1,069 |
6 Staff costs (Details 3)
6 Staff costs (Details 3) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Staff Costs | |||
Salary | £ 175 | £ 266 | £ 110 |
Total pension and other post-employment benefit costs | 17 | 22 | 4 |
Benefits in kind | 1 | 1 | 1 |
Termination benefits | 99 | ||
Director's emoluments | £ 193 | £ 289 | £ 214 |
7 Finance income and expense (D
7 Finance income and expense (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finance income | |||
Interest received on bank deposits | £ 1 | £ 8 | £ 2 |
Gain on equity settled derivative financial liability | 484 | ||
Total finance income | 1 | 492 | 2 |
Finance expense | |||
Bank loans | 582 | ||
Interest expense on lease liabilities | 20 | 30 | 5 |
Other loans | 14 | 67 | |
Loss on equity settled derivative financial liability | 397 | ||
Total finance expense | £ 431 | £ 97 | £ 587 |
8 Taxation (Details)
8 Taxation (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax credit | |||
Current tax credited to the income statement | £ 1,144 | £ 1,782 | £ 1,952 |
Taxation payable in respect of foreign subsidiary | (21) | (67) | |
Adjustment in respect of prior year | 158 | 3 | 128 |
Total current tax credit | 1,281 | 1,785 | 2,013 |
Deferred tax credit | |||
Reversal of temporary differences | 19 | ||
Total tax credit | £ 1,281 | £ 1,785 | £ 2,032 |
8 Taxation (Details 1)
8 Taxation (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxation Abstract | |||
Loss before tax | £ (23,470) | £ (11,870) | £ (17,062) |
Expected tax credit based on the standard rate of United Kingdom corporation tax at the domestic rate of 19% (2019: 19%, 2018: 19%) | (4,459) | (2,255) | (3,241) |
Expenses not deductible for tax purposes | 596 | 1,087 | 2,492 |
Income not taxable | (75) | ||
Unrelieved tax losses and other deductions | (114) | ||
Adjustment in respect of prior period | (158) | (3) | (129) |
Surrender of tax losses for R&D tax refund | (491) | (1,810) | (1,955) |
Unrelieved tax losses and other deductions arising in the period | (220) | ||
Foreign exchange differences | 1 | (26) | |
Deferred tax not recognised | 3,306 | 1,309 | 1,047 |
Total tax credited to the income statement | £ (1,281) | £ (1,785) | £ (2,032) |
8 Taxation (Details Narrative)
8 Taxation (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxation Abstract | |||
Applicable tax rate (in percent) | 19.00% | 19.00% | 19.00% |
9 Loss per share (Details)
9 Loss per share (Details) - GBP (£) £ / shares in Units, £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss used in basic EPS and diluted EPS: | |||
Continuing operations | £ (22,189) | £ (9,138) | £ (10,368) |
Discontinued operations | £ (947) | £ (4,662) | |
Denominator | |||
Weighted average number of ordinary shares used in basic EPS (in shares) | 42,839,961 | 18,330,588 | 3,056,303 |
Basic and diluted loss per share: | |||
Continuing operations - pence | £ (52) | £ (50) | £ (339) |
Discontinued operations - pence | £ (5) | £ (153) |
10 Property, plant and equipm_3
10 Property, plant and equipment (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | £ 2,154 | £ 1,983 | |
Additions | |||
Balance at end | 542 | 2,154 | £ 1,983 |
Right Of use [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 828 | ||
Balance at end | 76 | 828 | |
Laboratory equipment [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 998 | 1,325 | |
Balance at end | 423 | 998 | 1,325 |
Computer equipment [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 71 | 118 | |
Balance at end | 37 | 71 | 118 |
Leasehold improvements [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 244 | 528 | |
Balance at end | 2 | 244 | 528 |
Fixtures and fittings [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 13 | 12 | |
Balance at end | 4 | 13 | 12 |
Carrying amount [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 7,551 | 6,300 | 6,375 |
Additions | 209 | 1,209 | 503 |
Adoption of IFRS 16 Leases | 395 | ||
Effect of modification to lease terms | (678) | (82) | |
Disposals | (5,210) | (635) | |
Exchange differences | 271 | (271) | 57 |
Balance at end | 2,143 | 7,551 | 6,300 |
Carrying amount [member] | Right Of use [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 1,124 | ||
Additions | 822 | ||
Adoption of IFRS 16 Leases | 395 | ||
Effect of modification to lease terms | (678) | (82) | |
Disposals | (316) | ||
Exchange differences | 58 | (11) | |
Balance at end | 188 | 1,124 | |
Carrying amount [member] | Laboratory equipment [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 3,738 | 3,651 | 3,669 |
Additions | 135 | 223 | 353 |
Disposals | (2,323) | (401) | |
Exchange differences | 112 | (136) | 30 |
Balance at end | 1,662 | 3,738 | 3,651 |
Carrying amount [member] | Computer equipment [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 403 | 383 | 342 |
Additions | 16 | 23 | 40 |
Disposals | (185) | ||
Exchange differences | 2 | (3) | 1 |
Balance at end | 236 | 403 | 383 |
Carrying amount [member] | Leasehold improvements [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 2,038 | 2,013 | 2,112 |
Additions | 58 | 137 | 106 |
Disposals | (2,184) | (229) | |
Exchange differences | 92 | (112) | 24 |
Balance at end | 4 | 2,038 | 2,013 |
Carrying amount [member] | Fixtures and fittings [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 248 | 253 | 252 |
Additions | 4 | 4 | |
Disposals | (202) | (5) | |
Exchange differences | 7 | (9) | 2 |
Balance at end | 53 | 248 | 253 |
Accumulated depreciation and amortisation [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 5,397 | 4,317 | 3,846 |
Charge for the year | 1,207 | 1,282 | 1,016 |
Disposals | (5,186) | (599) | |
Exchange differences | 183 | (202) | 53 |
Balance at end | 1,601 | 5,397 | 4,317 |
Accumulated depreciation and amortisation [member] | Right Of use [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 296 | ||
Charge for the year | 118 | 303 | |
Disposals | (316) | ||
Exchange differences | 14 | (7) | |
Balance at end | 112 | 296 | |
Accumulated depreciation and amortisation [member] | Laboratory equipment [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 2,740 | 2,326 | 2,220 |
Charge for the year | 720 | 507 | 499 |
Disposals | (2,300) | (421) | |
Exchange differences | 79 | (93) | 28 |
Balance at end | 1,239 | 2,740 | 2,326 |
Accumulated depreciation and amortisation [member] | Computer equipment [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 332 | 265 | 192 |
Charge for the year | 50 | 70 | 72 |
Disposals | (185) | (3) | |
Exchange differences | 2 | (3) | 4 |
Balance at end | 199 | 332 | 265 |
Accumulated depreciation and amortisation [member] | Leasehold improvements [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 1,794 | 1,485 | 1,238 |
Charge for the year | 310 | 400 | 403 |
Disposals | (2,183) | (175) | |
Exchange differences | 81 | (91) | 19 |
Balance at end | 2 | 1,794 | 1,485 |
Accumulated depreciation and amortisation [member] | Fixtures and fittings [member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 235 | 241 | 196 |
Charge for the year | 9 | 2 | 43 |
Disposals | (202) | ||
Exchange differences | 7 | (8) | 2 |
Balance at end | £ 49 | £ 235 | £ 241 |
11 Leases (Details)
11 Leases (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Right of Use Asset | |||
Depreciation | £ 118 | £ 303 | |
Lease Liabilities | |||
Interest expenses | 20 | 30 | 5 |
Lease payments | (258) | (450) | (64) |
Land and buildings [member] | |||
Right of Use Asset | |||
Balance at beginning | 828 | 395 | |
Additions | 822 | ||
Effect of modification to lease terms | (678) | (82) | |
Depreciation | (118) | (303) | |
Exchange differences | 44 | (4) | |
Balance at ending | 76 | 828 | 395 |
Lease Liabilities | |||
Balance at beginning | 907 | 546 | |
Additions | 822 | ||
Effect of modification to lease terms | (788) | (82) | |
Interest expenses | 15 | 24 | |
Lease payments | (105) | (391) | |
Exchange differences | 47 | (12) | |
Balance at ending | £ 76 | £ 907 | £ 546 |
11 Leases (Details 1)
11 Leases (Details 1) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Land and buildings [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Operating leases of right-of-use asset | £ 76 | £ 828 | £ 395 |
Land and buildings [member] | Expiring In one year or less [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Operating leases of right-of-use asset | 383 | ||
Land and buildings [member] | Expiring between one and five years [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Operating leases of right-of-use asset | 189 | ||
Other assets [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Operating leases of right-of-use asset | 5 | ||
Other assets [member] | Expiring In one year or less [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Operating leases of right-of-use asset | 1 | ||
Other assets [member] | Expiring between one and five years [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Operating leases of right-of-use asset | £ 4 |
11 Leases (Details 2)
11 Leases (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessee [abstract] | ||
Low value leases expensed | £ 10 | £ 29 |
12 Intangible assets (Details)
12 Intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | £ 12,379 | £ 12,374 | |
Additions | |||
Balance at end | 12,379 | £ 12,374 | |
IT and website costs [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 10 | 5 | |
Balance at end | 10 | 5 | |
Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 2,291 | 2,291 | |
Balance at end | 2,291 | 2,291 | |
In-process research and development ("IPRD") [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 10,078 | 10,078 | |
Balance at end | 10,078 | 10,078 | |
Accumulated amortisation [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 3,325 | 3,323 | 19,058 |
Amortisation charge for the year | 10 | 3 | 434 |
Impairment | 12,369 | ||
Foreign exchange | 1 | (1) | 934 |
Disposals | (36) | (17,103) | |
Balance at end | 15,669 | 3,325 | 3,323 |
Accumulated amortisation [member] | IT and website costs [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 25 | 23 | 19 |
Amortisation charge for the year | 10 | 3 | 3 |
Foreign exchange | 1 | (1) | 1 |
Disposals | (36) | ||
Balance at end | 25 | 23 | |
Accumulated amortisation [member] | Product and marketing rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 15,739 | ||
Additions | |||
Amortisation charge for the year | 431 | ||
Foreign exchange | 933 | ||
Disposals | (17,103) | ||
Balance at end | |||
Accumulated amortisation [member] | Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | |||
Amortisation charge for the year | |||
Impairment | 2,291 | ||
Foreign exchange | |||
Disposals | |||
Balance at end | 2,291 | ||
Accumulated amortisation [member] | In-process research and development ("IPRD") [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 3,300 | 3,300 | 3,300 |
Additions | |||
Amortisation charge for the year | |||
Impairment | 10,078 | ||
Foreign exchange | |||
Disposals | |||
Balance at end | 13,378 | 3,300 | 3,300 |
Carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 15,704 | 15,697 | 46,705 |
Additions | 9 | ||
Foreign exchange | 1 | (2) | 1,822 |
Disposals | (36) | (32,830) | |
Balance at end | 15,669 | 15,704 | 15,697 |
Carrying amount [member] | IT and website costs [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 35 | 28 | 27 |
Additions | 9 | ||
Foreign exchange | 1 | (2) | 1 |
Disposals | (36) | ||
Balance at end | 35 | 28 | |
Carrying amount [member] | Product and marketing rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 19,856 | ||
Additions | |||
Foreign exchange | 1,166 | ||
Disposals | (21,022) | ||
Balance at end | |||
Carrying amount [member] | Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 2,291 | 2,291 | 13,444 |
Additions | |||
Foreign exchange | 655 | ||
Disposals | (11,808) | ||
Balance at end | 2,291 | 2,291 | 2,291 |
Carrying amount [member] | In-process research and development ("IPRD") [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 13,378 | 13,378 | 13,378 |
Additions | |||
Foreign exchange | |||
Disposals | |||
Balance at end | £ 13,378 | £ 13,378 | £ 13,378 |
12 Intangible assets (Details 1
12 Intangible assets (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | £ 0 | £ 10,100 | £ 10,100 |
Product and marketing rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | Between 2 and 12 years | ||
Product and marketing rights [member] | MTX110 acquired IPRD [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a | n/a in process | n/a in process |
Product and marketing rights [member] | Zuplenz [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a | n/a | n/a |
Product and marketing rights [member] | Midatech pharma US, inc. (formerly DARA biosciences, inc.) [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a | n/a | n/a |
In-process research and development ("IPRD") [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | In process, not yet amortising | ||
In-process research and development ("IPRD") [member] | Midatech pharma (wales) limited [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a in process | ||
Carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | £ 10,078 | £ 10,078 | |
Carrying amount [member] | Product and marketing rights [member] | MTX110 acquired IPRD [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 778 | 778 | |
Carrying amount [member] | Product and marketing rights [member] | Zuplenz [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | |||
Carrying amount [member] | Product and marketing rights [member] | Midatech pharma US, inc. (formerly DARA biosciences, inc.) [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | |||
Carrying amount [member] | In-process research and development ("IPRD") [member] | Midatech pharma (wales) limited [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | £ 9,300 |
13 Impairment testing (Details)
13 Impairment testing (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Midatech pharma (wales) limited [member] | Cash-generating units [member] | |||
DiscloureOfImpairmentTestingLineItems [Line Items] | |||
IPRD carrying amount | £ 9,300 | £ 9,300 | |
Goodwill carrying amount | 2,291 | 2,291 | |
Valuation Basis | Value in use | ||
MTX110 acquired IPRD [member] | |||
DiscloureOfImpairmentTestingLineItems [Line Items] | |||
IPRD carrying amount | 778 | 778 | |
Goodwill carrying amount |
13 Impairment testing (Details
13 Impairment testing (Details 1) - Midatech pharma (wales) limited [member] - Cash-generating units [member] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
DiscloureOfImpairmentTestingLineItems [Line Items] | |||
Pre-tax discount rate | 18.40% | 17.70% | |
Cumulative probability of success of projects | 81.00% | 81.00% |
13 Impairment testing (Detail_2
13 Impairment testing (Details 2) - Cash-generating units [member] - Midatech pharma (wales) limited [member] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
DiscloureOfImpairmentTestingLineItems [Line Items] | |||
Pre-tax discount rate for all projects | 21.00% | 29.80% | |
Cumulative probability of success of all projects | 59.00% | 34.00% |
13 Impairment testing (Detail_3
13 Impairment testing (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
DiscloureOfImpairmentTestingLineItems [Line Items] | ||||
Impairment charge on non financial assets | ||||
In-process research and development ("IPRD") [member] | Midatech pharma (wales) limited [member] | ||||
DiscloureOfImpairmentTestingLineItems [Line Items] | ||||
Impairment charge on non financial assets | £ 9,300 | £ 0 | £ 0 | |
Description of goodwill and IPRD allocated to the acquired cash generating unit | The assets of MPW were valued as at 31 December 2019 and 2018 and were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using (2019:12-13 year; 2018: 12–13 year), risk adjusted cash flow forecasts, in line with patent life, that have been approved by the Board. A period longer than 5 years was appropriate on the basis that the investment was long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used. | |||
In-process research and development ("IPRD") [member] | Midatech pharma (wales) limited [member] | Events After Reporting Periods [member] | ||||
DiscloureOfImpairmentTestingLineItems [Line Items] | ||||
Impairment charge on non financial assets | £ 11,600 |
14 Subsidiaries (Details)
14 Subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2020 | ||
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | ||
DiscloureOfSubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) | |
Registered Office | Parque Tecnológico de Vizcaya, Edificio 800 Planta 2, Derio, 48160, Vizcaya, Spain | [1] |
Nature of Business | In liquidation | |
PharMida AG [member] | ||
DiscloureOfSubsidiariesLineItems [Line Items] | ||
Entity name | PharMida AG | |
Registered Office | c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland | [1],[2] |
Nature of Business | Dormant | |
Midatech pharma (wales) limited [member] | ||
DiscloureOfSubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Pharma (Wales) Limited (formerly Q Chip Limited) | |
Registered Office | Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA | |
Nature of Business | Trading company | |
Midatech pharma PTY [member] | ||
DiscloureOfSubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Pharma Pty | |
Registered Office | ||
Nature of Business | Dissolved - 2020 | |
Midatech limited [member] | ||
DiscloureOfSubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Limited | |
Registered Office | Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA | |
Nature of Business | Trading company | |
[1] | Wholly owned subsidiary of Midatech Limited. | |
[2] | PharMida AG became dormant in January 2016. |
15 Trade and other receivable_2
15 Trade and other receivables (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [abstract] | |||
Trade receivables | £ 95 | £ 22 | £ 89 |
Prepayments | 258 | 151 | 139 |
Other receivables | 219 | 3,444 | 1,564 |
Total trade and other receivables | 572 | 3,617 | 1,792 |
Less: non-current portion (rental deposit and on bond) | (2,625) | (469) | |
Current portion | £ 572 | £ 992 | £ 1,323 |
16 Cash and cash equivalents _3
16 Cash and cash equivalents and cash flow supporting notes (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents And Cash Flow Supporting Notes | ||||
Cash at bank available on demand | £ 7,546 | £ 10,928 | £ 2,343 | £ 13,204 |
16 Cash and cash equivalents _4
16 Cash and cash equivalents and cash flow supporting notes (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash And Cash Equivalents And Cash Flow Supporting Notes | |||
Gross proceeds | £ 10,792 | £ 15,767 | |
Transaction costs | (1,050) | (1,659) | |
Equity transaction | £ 9,742 | £ 14,108 |
16 Cash and cash equivalents _5
16 Cash and cash equivalents and cash flow supporting notes (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
DiscloureOfCashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | |||
Beginning | £ 6,082 | £ 1,252 | £ 6,546 |
Cash Flows | (6,440) | 4,548 | (5,885) |
Foreign Exchange | 275 | (71) | 300 |
Fair value changes | 1,176 | (1,139) | |
Adoption of IFRS16 leases | 546 | ||
Effect of modification to lease term - IFRS 16 | (788) | (82) | |
New leases | 900 | 244 | |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | |||
Transfer to grant income | (14) | ||
Interest accruing in period | (45) | 142 | 47 |
Ending | 260 | 6,082 | 1,252 |
Non-current liabilities, borrowings [member] | |||
DiscloureOfCashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | |||
Beginning | 5,670 | 884 | 6,185 |
Cash Flows | (6,182) | 5,575 | (5,580) |
Foreign Exchange | 252 | (42) | 296 |
Fair value changes | 1,176 | (1,139) | |
Adoption of IFRS16 leases | 163 | ||
Effect of modification to lease term - IFRS 16 | (877) | ||
New leases | 805 | 168 | |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | 51 | (685) | (232) |
Transfer to grant income | |||
Interest accruing in period | (30) | 108 | 47 |
Ending | 60 | 5,670 | 884 |
Current liabilities, borrowings [member] | |||
DiscloureOfCashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | |||
Beginning | 412 | 368 | 361 |
Cash Flows | (258) | (1,027) | (305) |
Foreign Exchange | 23 | (29) | 4 |
Fair value changes | |||
Adoption of IFRS16 leases | 383 | ||
Effect of modification to lease term - IFRS 16 | (82) | ||
New leases | 89 | 95 | 76 |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | (51) | 685 | 232 |
Transfer to grant income | (14) | ||
Interest accruing in period | (15) | 34 | |
Ending | £ 200 | £ 412 | £ 368 |
16 Cash and cash equivalents _6
16 Cash and cash equivalents and cash flow supporting notes (Details Narrative) - shares | 1 Months Ended | |
May 31, 2020 | Oct. 31, 2019 | |
Warrant [member] | ||
DiscloureOfCashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | ||
Number of warrants issued | 1,000 | 1,100 |
17 Inventories (Details)
17 Inventories (Details) - GBP (£) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Inventories Abstract | |||
Finished goods | |||
Total inventories |
18 Trade and other payables (De
18 Trade and other payables (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current | |||
Trade payables | £ 337 | £ 725 | £ 286 |
Other payables | 26 | 13 | |
Accruals | 768 | 1,765 | 1,025 |
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost | 1,131 | 2,503 | 1,311 |
Tax and social security | 31 | 86 | 347 |
Deferred revenue and government grants | 68 | 1,905 | 445 |
Total trade and other payables | £ 1,230 | £ 4,494 | £ 2,103 |
18 Trade and other payables (_2
18 Trade and other payables (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
DiscloureOfTradeAndOtherPayablesLineItems [Line Items] | |||
Revenue from government grants | £ 163 | £ 362 | £ 1,789 |
Government Project [Member] | |||
DiscloureOfTradeAndOtherPayablesLineItems [Line Items] | |||
Project maturity date | Jan. 31, 2019 | ||
Revenue from government grants | 124 | 1,610 | |
Deferred revenue from government grants | £ 124 |
19 Borrowings (Details)
19 Borrowings (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current | |||
Total | £ 200 | £ 412 | £ 368 |
Non-current | |||
Total | 60 | 5,670 | 884 |
Government and research loans [member] | |||
Current | |||
Total | 107 | 179 | 284 |
Non-current | |||
Total | 4,758 | 714 | |
Bank loans [member] | |||
Current | |||
Total | 4 | ||
Non-current | |||
Total | |||
Lease liabilities [member] | |||
Current | |||
Total | 93 | 233 | 80 |
Non-current | |||
Total | £ 60 | £ 912 | £ 170 |
19 Borrowings (Details Narrativ
19 Borrowings (Details Narrative) - GBP (£) £ / shares in Units, £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2019 | Dec. 28, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Repayment of government and research loans | £ 4,800 | ||
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | Spanish government reindustrialization programme [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Government grants | £ 6,600 | ||
Midatech pharma (espana) SL (formerly midatech biogune SL) [member] | Spanish government reindustrialization programme [member] | Cash-backed guarantee [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Government grants | £ 2,900 | ||
Secured loan agreement [member] | Midcap financial trust [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total drawn facility | £ 15,000 | ||
Description of interest rate | Annual rate of LIBOR plus 7.5% subject to a LIBOR floor of 1.25%. | ||
Number of warrants granted | 247,881 | ||
Exercise price of warrants granted | £ 0.42 | ||
Percentage of amount funded | 2.00% | ||
Drawn facility under bank laon | £ 7,000 |
20 Provisions (Details)
20 Provisions (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provisions [abstract] | |||
Opening provision at 1 January | £ 97 | £ 165 | |
Provision (released)/recognised in the year | (47) | (68) | £ 165 |
At 31 December | 50 | 97 | 165 |
Less: non-current portion (rental deposit and bond) | (50) | (165) | |
Current portion | £ 97 |
21 Derivative financial liabi_3
21 Derivative financial liability - current (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | |||
Equity settled derivative financial liability | |||
At 1 January | £ 664 | ||
Warrants issued | 997 | 1,148 | |
Transfer to share premium on exercise of warrants | (499) | ||
Gain recognised in finance income within the consolidated statement of comprehensive income | 397 | (484) | |
At 31 December | £ 1,559 | £ 664 |
21 Derivative financial liabi_4
21 Derivative financial liability - current (Details Narrative) - GBP (£) £ / shares in Units, £ in Thousands | Aug. 19, 2020 | Oct. 31, 2019 | May 31, 2020 | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 |
Midatech Pharma US Inc [member] | |||||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||||
Share price | £ 0.56 | £ 1.20 | |||||
Remeasurement of finance income | £ 0 | £ 0 | |||||
Warrant [member] | |||||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||||
Number of shares lapsed | 111,582 | 38,844 | |||||
Number of warrants issued | 1,000 | 1,100 | |||||
Share Options [member] | |||||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||||
Number of shares lapsed | 3,332 | 8,846 | |||||
Warrants [member] | |||||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||||
Share price | £ 0.41 | ||||||
Number of warrants issued | 2,500,000 | 3,150,000 | |||||
Number of shares outstanding | 3,150,000 | 7,045,455 | |||||
Gross proceed | £ 1,025,000 | ||||||
Exercise | £ 498,502 |
22 Financial instruments - ri_3
22 Financial instruments - risk management (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets - amortised cost | ||||
Cash and cash equivalents | £ 7,546 | £ 10,928 | £ 2,343 | £ 13,204 |
Trade receivables | 95 | 22 | 89 | |
Other receivables | 2,625 | 469 | ||
Total financial assets | 7,641 | 13,575 | 2,901 | |
Financial liabilities - amortised cost | ||||
Trade payables | 337 | 725 | 286 | |
Other payables | 26 | 13 | ||
Accruals | 768 | 1,765 | 1,025 | |
Borrowings | 260 | 6,082 | 1,252 | |
Total financial liabilities - amortised cost | 1,391 | 8,585 | 2,563 | |
Financial liabilities - fair value through profit and loss - current | ||||
Equity settled derivative financial liability | £ 1,559 | £ 664 |
22 Financial instruments - ri_4
22 Financial instruments - risk management (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Equity settled derivative financial liability | £ 1,559 | £ 664 | |
Level 3 [member] | Monte Carlo simulation model [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Equity settled derivative financial liability | £ 1,187 | £ 664 | |
Valuation technique (s) and key input(s) | Monte Carlo simulation model | Monte Carlo simulation model | |
Significant unobservable input(s) | Volatility rate of 105.0% determined using historical volatility of comparable companies. | Volatility rate of 78.4% determined using historical volatility of comparable companies. | |
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |
Significant unobservable input(s) | Expected life between a range of 0.1 and 4.49 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. | |
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |
Significant unobservable input(s) | Risk-free rate of 0.07% determined using the expected life assumptions. | Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. | |
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | |
Level 3 [member] | Black-Scholes option pricing model [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Valuation technique (s) and key input(s) | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model |
Significant unobservable input(s) | Volatility rate of 105.0% determined using historical volatility of comparable companies. | Volatility rate of 78.3% determined using historical volatility of comparable companies. | Volatility rate of 42.5% determined using historical volatility of comparable companies. |
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. |
Significant unobservable input(s) | Expected life between a range of 1.0 and 1.9 years determined using the remaining life of the share options. | Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 7.6 years determined using the remaining life of the share options. |
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. |
Significant unobservable input(s) | Risk-free rate of 0.8% determined using the expected life assumptions. | Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. | Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. |
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. |
Level 3 [member] | Monte Carlo simulation model [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Equity settled derivative financial liability | £ 372 | ||
Valuation technique (s) and key input(s) | Monte Carlo simulation model | ||
Significant unobservable input(s) | Volatility rate of 105.0% determined using historical volatility of comparable companies. | ||
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | ||
Significant unobservable input(s) | Expected life between a range of 0.1 and 4.888 years determined using the remaining life of the share options. | ||
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | ||
Significant unobservable input(s) | Risk-free rate of 0.08% determined using the expected life assumptions. | ||
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. |
22 Financial instruments - ri_5
22 Financial instruments - risk management (Details 2) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||||
Total | £ 7,546 | £ 10,928 | £ 2,343 | £ 13,204 |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | 175 | 3,488 | 1,981 | |
Foreign exchange risk [member] | Pounds Sterling | ||||
Cash and cash equivalents: | ||||
Total | 7,247 | 3,153 | 457 | |
Foreign exchange risk [member] | US Dollar | ||||
Cash and cash equivalents: | ||||
Total | 120 | 2,021 | 1,421 | |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | 120 | 2,021 | 1,421 | |
Foreign exchange risk [member] | Euro | ||||
Cash and cash equivalents: | ||||
Total | 179 | 5,750 | 459 | |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | 54 | 1,460 | 552 | |
Foreign exchange risk [member] | Other | ||||
Cash and cash equivalents: | ||||
Total | 4 | 6 | ||
Net Foreign Currency Assets/(Liabilities): | ||||
Total | £ 1 | £ 7 | £ 8 |
22 Financial instruments - ri_6
22 Financial instruments - risk management (Details 3) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | £ (23,470) | £ (10,923) | £ (12,400) | |
Total equity | 6,718 | 19,558 | 16,924 | £ 34,676 |
Foreign currency sensitivity analysis [member] | US Dollar | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | 12 | 202 | ||
Total equity | 12 | 202 | 142 | |
Foreign currency sensitivity analysis [member] | Euro | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | (293) | 54 | 168 | |
Total equity | (293) | 31 | 168 | |
Foreign currency sensitivity analysis [member] | Other | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | (4) | |||
Total equity | £ (4) | £ 1 |
22 Financial instruments - ri_7
22 Financial instruments - risk management (Details 4) - Liquidity Risk [member] - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Up to 3 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | £ 1,263 | £ 2,582 | £ 1,380 |
Between 3 and 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 75 | 437 | 307 |
Between 1 and 2 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 61 | 555 | 485 |
Between 2 and 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 8 | 3,586 | 531 |
Over 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3,317 | ||
Trade and other payables [member] | Up to 3 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 1,131 | 2,503 | 1,311 |
Trade and other payables [member] | Between 3 and 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Trade and other payables [member] | Between 1 and 2 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Trade and other payables [member] | Between 2 and 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Trade and other payables [member] | Over 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Bank loans [member] | Up to 3 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3 | ||
Bank loans [member] | Between 3 and 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 2 | ||
Bank loans [member] | Between 1 and 2 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Bank loans [member] | Between 2 and 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Bank loans [member] | Over 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Lease liabilities [member] | Up to 3 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 25 | 79 | 22 |
Lease liabilities [member] | Between 3 and 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 75 | 165 | 65 |
Lease liabilities [member] | Between 1 and 2 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 61 | 317 | 79 |
Lease liabilities [member] | Between 2 and 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 8 | 735 | 117 |
Lease liabilities [member] | Over 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Government and research loans [member] | Up to 3 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 107 | 44 | |
Government and research loans [member] | Between 3 and 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 272 | 240 | |
Government and research loans [member] | Between 1 and 2 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 238 | 406 | |
Government and research loans [member] | Between 2 and 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 2,851 | 414 | |
Government and research loans [member] | Over 5 years [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | £ 3,317 |
22 Financial instruments - ri_8
22 Financial instruments - risk management (Details Narrative) - GBP (£) £ in Thousands | Aug. 31, 2020 | Jul. 31, 2020 | May 31, 2020 |
Disclosure of detailed information about financial instruments [abstract] | |||
Amount raised | £ 7,800 | £ 57,500 | £ 42,600 |
23 Deferred tax (Details)
23 Deferred tax (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax | |||
Gross losses | £ 63,183 | £ 49,565 | £ 40,741 |
Potential deferred tax asset | £ 13,076 | £ 8,426 | £ 6,926 |
23 Deferred tax (Details 1)
23 Deferred tax (Details 1) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax | |||
Asset | £ 1,581 | £ 1,690 | |
Liability | (1,581) | (1,690) | |
Net |
23 Deferred tax (Details Narrat
23 Deferred tax (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax | |||
Impairment of intangible assets | £ 1,600 | ||
Deferred tax account | |||
Deferred tax asset | 1,600 | 1,700 | |
Uncertain deferred tax asset | 9,000 | ||
Potential deferred tax asset | £ 13,100 | £ 9,000 | £ 7,300 |
Description of deferred tax asset | Deferred tax asset balances disclosed as at 31 December 2020 have been calculated at 19%. The Finance Bill 2021 enacts an increase in the tax rate to 25% from 1 April 2023. The deferred tax assets balance using a rate of 25% would be £17.2m. |
24 Share capital (Details)
24 Share capital (Details) - GBP (£) £ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | |||
Amount of allotted and fully paid - classified as equity | £ 1,063 | £ 1,023 | £ 1,003 |
Ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of authorised shares | 63,073,852 | 23,494,981 | 3,059,207 |
Amount of allotted and fully paid - classified as equity | £ 63,074 | £ 23,495 | £ 3,059 |
Deferred Shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of authorised shares | 1,000,001 | 1,000,001 | 1,000,001 |
Amount of allotted and fully paid - classified as equity | £ 1,000,001 | £ 1,000,001 | £ 1,000,001 |
24 Share capital (Details 1)
24 Share capital (Details 1) - GBP (£) £ / shares in Units, £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||
Balance at beginning | £ 85,638 | £ 69,870 | |
Placing & Registered Direct Offering 18 May 2020 | 4,255 | ||
Placing and Open Offer (see note 16) 26 February 2019 (in pound per share) | £ 0.77 | ||
Placing and Open Offer (see note 16) 26 February 2019 | £ 13,406 | ||
Share issue to SIPP trustee (see note 27) 8 October 2019 (in pound per share) | £ 0.001 | ||
Registered Direct Offering 29 October 2019 (in pound per share) | £ 0.7874 | ||
Registered Direct Offering 29 October 2019 | £ 2,362 | ||
Placing 27 July 2020 | 5,750 | ||
Exercise of warrants 19 August 2020 | £ 783 | ||
Share issue to SIPP trustee (see note 27) 1 August 2018 (in pound per share) | £ 0.001 | ||
Share issue to SIPP trustee (see note 27) 1 August 2018 | |||
Share issue to SIPP trustee (see note 27) 30 September 2020 (in pound per share) | £ 0.001 | ||
Share issue to SIPP trustee (see note 28) 30 September 2020 | |||
Balance at end | £ 96,426 | £ 85,638 | £ 69,870 |
Ordinary shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning (in shares) | 23,494,981 | 3,059,207 | |
Placing & Registered Direct Offering 18 May 2020 (in shares) | 15,757,576 | ||
Placing & Registered Direct Offering 18 May 2020 (in pound per share) | £ 0.27 | ||
Placing 27 July 2020 (in shares) | 21,296,295 | ||
Placing 27 July 2020 (in pound per share) | £ 0.27 | ||
Exercise of warrants 19 August 2020 (in shares) | 2,500,000 | ||
Share issue to SIPP trustee (see note 27) 1 August 2018 (in shares) | 5,000 | ||
Share issue to SIPP trustee (see note 27) 30 September 2020 (in shares) | 2,500 | ||
Balance at end (in shares) | 63,073,852 | 23,494,981 | 3,059,207 |
Deferred Shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning (in shares) | 1,000,001 | 1,000,001 | |
Placing & Registered Direct Offering 18 May 2020 (in shares) | |||
Placing and Open Offer (see note 16) 26 February 2019 (in shares) | 17,410,774 | ||
Share issue to SIPP trustee (see note 27) 8 October 2019 (in shares) | 25,000 | ||
Registered Direct Offering 29 October 2019 (in shares) | 3,000,000 | ||
Placing 27 July 2020 (in shares) | |||
Share issue to SIPP trustee (see note 27) 1 August 2018 (in shares) | |||
Share issue to SIPP trustee (see note 27) 30 September 2020 (in shares) | |||
Balance at end (in shares) | 1,000,001 | 1,000,001 | 1,000,001 |
24 Share capital (Details Narra
24 Share capital (Details Narrative) - £ / shares | Mar. 02, 2020 | Dec. 31, 2020 |
Disclosure of classes of share capital [line items] | ||
Description of stock split | Ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. | |
Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Share par value (in dollars per share) | £ 0.001 | £ 100 |
25 Reserves (Details)
25 Reserves (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Share premium [member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Amount subscribed for share capital in excess of nominal value. |
Merger Reserve [member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. |
Foreign exchange reserve [member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Gains/losses arising on retranslating the net assets of overseas operations into sterling. |
Accumulated deficit [member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
Warrant reserve [member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Represents the fair value of warrants denominated in £ at the date of grant. |
25 Reserves (Details Narrative)
25 Reserves (Details Narrative) | May 18, 2020shares |
Warrant [member] | |
ReservesLineItems [Line Items] | |
Warrant granted | 6,999,999 |
27 Share-based Payments (Detail
27 Share-based Payments (Details) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020Number | Apr. 30, 2020Number | Oct. 30, 2019Number | Apr. 30, 2019Number | Dec. 31, 2020£ / sharesNumber | Dec. 31, 2019£ / sharesNumber | Dec. 31, 2018£ / sharesNumber | |
SharebasedPaymentsLineItems [Line Items] | |||||||
Beginning of the year | 336,026 | 158,966 | 226,488 | ||||
Granted | 1,363,000 | 100,000 | 50,000 | 219,000 | 1,463,000 | 226,488 | 5,497 |
Exercised | |||||||
Forfeited | (316,048) | (91,940) | (73,019) | ||||
End of the year | 1,482,978 | 336,026 | 158,966 | ||||
15 December 2017 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 15, 2017 | Dec. 15, 2017 | Dec. 15, 2017 | ||||
Beginning of the year | 29,560 | 45,885 | 67,560 | ||||
Forfeited | (26,260) | (16,325) | (21,675) | ||||
End of the year | 3,300 | 29,560 | 45,885 | ||||
Exercise Price | 9.20 | 9.20 | 9.20 | ||||
15 December 2017 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 15, 2017 | Dec. 15, 2017 | Dec. 15, 2017 | ||||
Beginning of the year | 29,560 | 45,885 | 67,560 | ||||
Forfeited | (26,260) | (16,325) | (21,675) | ||||
End of the year | 3,300 | 29,560 | 45,885 | ||||
Exercise Price | 9.20 | 9.20 | 9.20 | ||||
31 October 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Oct. 31, 2016 | Oct. 31, 2016 | |||||
Beginning of the year | 16,271 | 23,411 | 30,380 | ||||
Forfeited | (7,140) | (6,969) | |||||
End of the year | 16,271 | 23,411 | |||||
Exercise Price | £ / shares | 53.6 | 53.60 | |||||
14 December 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | Dec. 14, 2016 | ||||
Beginning of the year | 500 | 500 | 500 | ||||
Forfeited | (500) | ||||||
End of the year | 500 | 500 | |||||
Exercise Price | £ / shares | 34 | 34 | 34 | ||||
14 December 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | Dec. 14, 2016 | ||||
Beginning of the year | 400 | 400 | 400 | ||||
Forfeited | (400) | ||||||
End of the year | 400 | 400 | |||||
Exercise Price | £ / shares | 31 | 31 | 31 | ||||
15 December 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 15, 2016 | Dec. 15, 2016 | Dec. 15, 2016 | ||||
Beginning of the year | 4,600 | 4,600 | 5,100 | ||||
Forfeited | (4,600) | (500) | |||||
End of the year | 4,600 | 4,600 | |||||
Exercise Price | £ / shares | 24.20 | 24.20 | 24 | ||||
20 August 2010 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Aug. 20, 2010 | Aug. 20, 2010 | Aug. 20, 2010 | ||||
Beginning of the year | 2,088 | 2,088 | 2,088 | ||||
Forfeited | (2,088) | ||||||
End of the year | 2,088 | 2,088 | |||||
Exercise Price | £ / shares | 84 | 84 | 84 | ||||
13 September 2011 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Sep. 13, 2011 | Sep. 13, 2011 | Sep. 13, 2011 | ||||
Beginning of the year | 150 | 150 | 150 | ||||
End of the year | 150 | 150 | 150 | ||||
Exercise Price | £ / shares | 84 | 84 | 84 | ||||
20 April 2012 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Apr. 20, 2012 | Apr. 20, 2012 | Apr. 20, 2012 | ||||
Beginning of the year | 1,589 | 1,589 | 1,789 | ||||
Forfeited | (200) | ||||||
End of the year | 1,589 | 1,589 | 1,589 | ||||
Exercise Price | £ / shares | 84 | 84 | 84 | ||||
9 May 2014 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | May 9, 2014 | May 9, 2014 | May 9, 2014 | ||||
Beginning of the year | 10,000 | 10,000 | 10,000 | ||||
End of the year | 10,000 | 10,000 | 10,000 | ||||
Exercise Price | £ / shares | 2 | 2 | 2 | ||||
30 June 2014 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||||
Beginning of the year | 18,500 | 21,500 | 44,000 | ||||
Forfeited | (18,000) | (3,000) | (22,500) | ||||
End of the year | 500 | 18,500 | 21,500 | ||||
Exercise Price | £ / shares | 2 | 2 | 2 | ||||
11 July 2014 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Jul. 11, 2014 | Jul. 11, 2014 | Jul. 11, 2014 | ||||
Beginning of the year | 100 | 100 | 100 | ||||
Forfeited | (100) | ||||||
End of the year | 100 | 100 | |||||
Exercise Price | £ / shares | 2 | 2 | 2 | ||||
1 April 2010 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Apr. 1, 2010 | Apr. 1, 2010 | Apr. 1, 2010 | ||||
Beginning of the year | 1,255 | 1,255 | 1,255 | ||||
Forfeited | (1,255) | ||||||
End of the year | 1,255 | 1,255 | |||||
Exercise Price | £ / shares | 80 | 80 | 80 | ||||
19 December 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 19, 2016 | Dec. 19, 2016 | Dec. 19, 2016 | ||||
Beginning of the year | 22,391 | 35,866 | 55,210 | ||||
Forfeited | (12,373) | (13,475) | (19,344) | ||||
End of the year | 10,018 | 22,391 | 35,866 | ||||
Exercise Price | £ / shares | 24 | 24 | 24 | ||||
2 April 2018 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Apr. 2, 2018 | Apr. 2, 2018 | Apr. 2, 2018 | ||||
Beginning of the year | 997 | 997 | |||||
Granted | 997 | ||||||
Forfeited | (997) | ||||||
End of the year | 997 | 997 | |||||
Exercise Price | £ / shares | 17 | 17 | 17 | ||||
31 December 2008 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 31, 2008 | ||||||
Beginning of the year | 150 | ||||||
Forfeited | (150) | ||||||
Exercise Price | £ / shares | 80 | ||||||
31 October 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Oct. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2016 | ||||
Beginning of the year | 16,271 | 2,500 | 2,500 | ||||
Forfeited | (8,350) | (2,500) | |||||
End of the year | 7,921 | 16,271 | 2,500 | ||||
Exercise Price | £ / shares | 54 | 34.2 | 34.20 | ||||
14 December 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | Dec. 14, 2016 | ||||
Beginning of the year | 2,000 | 2,000 | 2,000 | ||||
Forfeited | (2,000) | ||||||
End of the year | 2,000 | 2,000 | |||||
Exercise Price | £ / shares | 37 | 37 | 37 | ||||
14 December 2016 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | Dec. 14, 2016 | ||||
Beginning of the year | 1,625 | 1,625 | 2,000 | ||||
Forfeited | (1,625) | (375) | |||||
End of the year | 1,625 | 1,625 | |||||
Exercise Price | £ / shares | 38 | 38 | 37.60 | ||||
2 April 2018 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Apr. 2, 2018 | Apr. 2, 2018 | Apr. 2, 2018 | ||||
Beginning of the year | 4,500 | 4,500 | |||||
Granted | 4,500 | ||||||
Forfeited | (4,500) | ||||||
End of the year | 4,500 | 4,500 | |||||
Exercise Price | £ / shares | 24 | 24 | 24 | ||||
24 April 2019 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Apr. 24, 2019 | Apr. 24, 2019 | |||||
Beginning of the year | 169,500 | ||||||
Granted | 219,000 | ||||||
Forfeited | (124,000) | (49,500) | |||||
End of the year | 45,500 | 169,500 | |||||
Exercise Price | £ / shares | 1 | 1 | |||||
2 October 2019 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Oct. 2, 2019 | Oct. 2, 2019 | |||||
Beginning of the year | 50,000 | ||||||
Granted | 50,000 | ||||||
Forfeited | (20,000) | ||||||
End of the year | 30,000 | 50,000 | |||||
Exercise Price | £ / shares | 1 | 1 | |||||
31 December 2008 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Dec. 31, 2008 | ||||||
Beginning of the year | 1,306 | ||||||
Forfeited | (1,306) | ||||||
Exercise Price | £ / shares | 29 | ||||||
17 April 2020 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Apr. 17, 2020 | ||||||
Granted | 100,000 | ||||||
End of the year | 100,000 | ||||||
Exercise Price | £ / shares | 0.24 | ||||||
17 June 2020 [member] | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||
Grant date | Jun. 17, 2020 | ||||||
Granted | 1,363,000 | ||||||
Forfeited | (89,000) | ||||||
End of the year | 1,274,000 | ||||||
Exercise Price | £ / shares | 0.202 |
27 Share-based Payments (Deta_2
27 Share-based Payments (Details 1) | 12 Months Ended | ||
Dec. 31, 2020Number£ / shares | Dec. 31, 2019Number£ / shares | Dec. 31, 2018Number£ / shares | |
Weighted average exercise price | |||
Options exercisable | Number | 195,171 | 131,094 | 112,393 |
Weighted average exercise price of outstanding options | £ 0.835 | £ 8.48 | £ 22.02 |
Weighted average exercise price of options exercised | |||
Weighted average exercise price of options forfeited | 7.192 | 13.26 | 15.98 |
Weighted average exercise price of options granted | £ 0.205 | £ 1.38 | £ 16.60 |
Weighted average remaining contractual life of outstanding options | 9 years 2 months 12 days | 7 years 10 months 24 days | 5 years 8 months 12 days |
27 Share-based Payments (Deta_3
27 Share-based Payments (Details 2) | 1 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2020Number£ / shares | Apr. 30, 2020Number£ / shares | Oct. 30, 2019Number£ / shares | Apr. 30, 2019Number£ / shares | Dec. 31, 2020Number | Dec. 31, 2019Number | Dec. 31, 2018Number£ / shares | |||||||
SharebasedPaymentsLineItems [Line Items] | |||||||||||||
Number of options | Number | 1,363,000 | 100,000 | 50,000 | 219,000 | 1,463,000 | 226,488 | 5,497 | ||||||
Option pricing models used | Black-Scholes | Black-Scholes | Black-Scholes | Black-Scholes | Monte-Carlo | ||||||||
Share price | Number | 0.213 | [1] | 0.24 | [1] | 1.126 | [2] | 2.30 | [2] | 5.40 | [3] | |||
Exercise price of options issued in year | £ 0.202 | £ 0.24 | £ 1.05 | £ 1.46 | |||||||||
Contractual life | 10 years | 10 years | 10 years | 10 years | 10 years | ||||||||
Expected life | 5 years | 5 years | 5 years | 5 years | 5 years | ||||||||
Volatility | [4] | 92.55% | 84.76% | 78.30% | 75.30% | 45.20% | |||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Risk free rate | 0.10% | 0.11% | 0.26% | 0.85% | 1.03% | ||||||||
Bottom Of Range [member] | |||||||||||||
SharebasedPaymentsLineItems [Line Items] | |||||||||||||
Exercise price of options issued in year | £ 16.60 | ||||||||||||
Top Of Range [member] | |||||||||||||
SharebasedPaymentsLineItems [Line Items] | |||||||||||||
Exercise price of options issued in year | £ 24.40 | ||||||||||||
[1] | The share price used in the determination of the fair value of the options granted in 2020 was the share price on the date of grant. | ||||||||||||
[2] | The share price used in the determination of the fair value of the options granted in 2019 was the share price on the date of grant. | ||||||||||||
[3] | The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. | ||||||||||||
[4] | Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. |
29 Related party transactions_2
29 Related party transactions (Details) - BioConnection BV [member] - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Purchase of good | £ 296 | £ 18 | |
Amounts owed by related parties | £ 8 |
30 Contingent liabilities (Deta
30 Contingent liabilities (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contingent Liabilities | ||
Contingent liabilites | £ 190 | £ 258 |
32 Results of Midatech Pharma_2
32 Results of Midatech Pharma (Espana) SL (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Results Of Midatech Pharma Espana Sl | |||
Grant revenue | £ 163 | £ 362 | £ 1,789 |
Total revenue | 343 | 674 | 1,938 |
Research and development costs | (6,068) | (7,843) | (9,359) |
Administrative costs | (4,952) | (3,841) | (4,394) |
Loss from operations | (23,040) | (11,318) | (11,815) |
Finance expense | (431) | (97) | (587) |
Loss before tax | (23,470) | (10,923) | (12,400) |
Taxation | 1,281 | 1,785 | 2,032 |
Loss from operations after tax | £ (22,189) | £ (9,138) | £ (10,368) |
33 Post balance sheet events (D
33 Post balance sheet events (Details Narrative) - Events After Reporting Periods [member] - GBP (£) £ in Thousands | Apr. 23, 2021 | Feb. 28, 2021 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Spanish Tax Authorities late payment fine | £ 149,835 | |
Lease term | 5 years |