Company Oxford Glycosciences PLC
TIDM OGS
Headline Final Results
Released 09:00 28 Apr 2003
Number 4149K
RNS Number:4149K
Oxford Glycosciences PLC
28 April 2003
PRESS RELEASE
For further information please contact:
Oxford GlycoSciences Plc
David Ebsworth, Ph.D., Chief Executive Officer
Denis Mulhall, Chief Financial Officer
Tel: +44 (0) 1235 208 000
Website: www.ogs.com
Financial Dynamics
UK Media and Investors
Tim Spratt
Melanie Toyne-Sewell
Tel: +44 (0) 20 7831 3113
US Media and Investors
Leslie Wolf-Creutzfeldt
Deborah Ardern Jones
Tel: +1 212 850 5626
Not for release, publication or distribution in, into or from Australia,
Canada or Japan
OXFORD GLYCOSCIENCES PLC ("OGS")
PRELIMINARY UNAUDITED RESULTS 2002
Oxford, UK, 28 April 2002 - Oxford GlycoSciences Plc (LSE:OGS,NASDAQ:OGSI)
(the "Company") today announces its preliminary unaudited results for the
year ended 31 December 2002. The directors note that the audit has not yet
been finalised and are not aware of any outstanding items that will have a
material effect on the results herein.
The Board of Directors on 11 April 2003 recommended the offer by Celltech
Group plc for the entire issued share capital of the Company. The offer
has now been declared unconditional in all respects and the transaction is
likely to be implemented towards the end of May 2003. In the light of these
developments the unaudited results are released as a matter of record and
without further comment.
Consolidated Profit and Loss Account
For the year ended 31 December 2002
2002 2001
Notes GBP'000 GBP'000
______ ______
Turnover 3 13,973 13,376
Net operating costs 4 (54,765) (49,396)
______ ______
Operating loss (40,792) (36,020)
Share of joint venture loss (4,383) (2,007)
Profit on disposal - 82
______ ______
Loss on ordinary activities before interest and
taxation (45,175) (37,945)
Interest receivable 6,408 9,733
Amount written off investments 5 (2,397) -
______ ______
Loss on ordinary activities before taxation (41,164) (28,212)
Tax on loss on ordinary activities 6 3,299 2,864
______ ______
Loss for the year (37,865) (25,348)
______ ______
Loss per ordinary 5p share
- - basic and diluted 7 (68.04p) (46.04p)
______ ______
The Group has no recognised gains or losses other than those above, therefore
no separate statement of total recognised gains and losses has been presented.
There is no difference between the losses on ordinary activities before
taxation and the losses for the periods stated above, and their historical
cost equivalents. The results for the periods above are derived entirely from
continuing activities.
Balance Sheet
At 31 December 2002
Group Company
2002 2001 2002 2001
Notes GBP'000 GBP'000 GBP'000 GBP'000
______ ______ ______ ______
Fixed assets
Tangible assets 12,553 14,221 - -
Investments
Investment in joint venture
- - share of gross assets 9,571 14,679 - -
Investment in joint venture
- - share of gross liabilities (961) (1,686) - -
Investment in joint venture
- - provision for unrealised profit (1,595) (2,708) - -
______ ______ ______ ______
3 7,015 10,285 - -
Other investments 9 5,538 4,251 36,666 36,666
______ ______ ______ ______
25,106 28,757 36,666 36,666
______ ______ ______ ______
Current assets
Stock 264 346 -
Debtors 10,812 9,626 142,650 103,171
Cash at bank and in hand 136,412 176,618 123,462 155,489
______ ______ ______ ______
147,488 186,590 266,112 258,660
______ ______ ______ ______
Creditors: amounts falling
due within one year (14,033) (18,250) -
______ ______ ______
Net current assets 133,455 168,340 266,112 258,660
______ ______ ______ ______
Total assets less current
liabilities 158,561 197,097 302,778 295,326
Creditors: amounts falling
due after more than one year (1,659) (2,399) - -
Provisions for liabilities
and charges - (87) - -
______ ______ ______ ______
Net assets 156,902 194,611 302,778 295,326
______ ______ ______ ______
Capital and reserves
Share capital 2,787 2,778 2,787 2,778
Share premium account 276,097 275,950 276,097 275,950
Capital reserve 11,107 11,107 - -
Profit and loss account (133,089) (95,224) 23,894 16,598
(deficit)
______ ______ ______ ______
Equity shareholders'funds 8 156,902 194,611 302,778 295,326
______ ______ ______ ______
Consolidated Cash Flow Statement
For the year ended 31 December 2002
Notes 2002 2002 2001 2001
GBP'000 GBP'000 GBP'000 GBP'000
_____ _____ _____ _____
Net cash flow from operating
activities A (45,128) (22,164)
Returns on investments and
servicing of finance
Interest received 7,829 9,042
_____
Net cash flow from returns 7,829 9,042
on investments and servicing
of finance
Taxation 4,669 -
4,669 -
Capital expenditure and
financial investment
Purchases of tangible fixed assets (4,204) (5,306)
Purchases of fixed asset
investments (3,528) (19,251)
_____
Net cash flow from capital
expenditure and financial
investment (7,732) (24,557)
Disposals
Cash consideration from sale
of biochemicals product line - 115
Cash consideration from sale
of other assets - 7
Net cash flow before management
of liquid resources and financing (40,362) (37,557)
Management of liquid
resources B 39,253 39,480
Financing
Issue of ordinary share capital 304 10,552
Expenses paid in connection
with share issues (148) (269)
_____
Net cash flow from 156 10,283
financing
(Decrease)/Increase in net cash C (953) 12,206
_____ _____
Notes to the Consolidated Cash Flow Statement
A Reconciliation of operating loss to net cash flow from operating
activities
2002 2002 2001 2001
GBP'000 GBP'000 GBP'000 GBP'000
______ ______ ______ ______
Operating loss (40,792) (36,020)
Depreciation charges (including profit
/ loss on disposals) 5,402 4,418
Decrease/(Increase) in stock 82 (170)
(Increase)/Decrease in debtors (3,977) 34
(Decrease)/Increase in deferred
income (2,832) 6,815
(Decrease)/Increase in creditors (3,011) 2,759
______ ______
(4,336) 13,856
______ ______
Net cashflow from operating activities (45,128) (22,164)
______ ______
B Reconciliation of net cash flow to movement in net funds
2002 2002 2001 2001
GBP'000 GBP'000 GBP'000 GBP'000
______ ______ ______ ______
(Decrease)/Increase in cash in the
year (953) 12,206
Cashflow from decrease in liquid
resources (39,253) (39,480)
______ ______
Change in net funds resulting from
cash flows (39,253) (39,480)
______ ______
Movement in net funds in the year (40,206) (27,274)
Net funds at 1 January 176,618 203,892
______ ______
Net funds at 31 December 136,412 176,618
______ ______
C Analysis of net funds
At 1 At 31
January December
2002 Cash flow 2002
GBP'000 GBP'000 GBP'000
______ ______ ______
Cash at bank and in hand 14,052 (953) 13,099
Bank deposits - liquid resources 162,566 (39,253) 123,313
______ ______ ______
176,618 (40,206) 136,412
______ ______ ______
Liquid resources represent all deposits with an original maturity of between
24 hours and one year. Cash includes cash in hand and deposits of up to 24
hours which are payable on demand.
Notes
1 Preliminary results
The preliminary results for the year ended 31 December 2002 represent
abridged financial statements and have not yet been delivered to the
Registrar of Companies. The comparative figures for the year ended 31
December 2001 have been taken from, but do not constitute, the Group's
financial statements for that year. Those financial statements were
reported on by the Group's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not contain
a statement under Section 237(2) of the Companies Act 1985.
2 Principal accounting policies
The accounts have been prepared in accordance with applicable Accounting
Standards in the United Kingdom. The accounting policies applied are
consistent with those set out in the Annual Report and Accounts for the
year ended 31 December 2001.
3 Interest in joint venture
In June 2001, OGS formed a joint venture with Marconi, called Confirmant
Ltd, which will provide database services to pharmaceutical and
biotechnology companies.
As at 31 December 2002, there is a provision for unrealised profit, GBP1.6
million, representing revenue from the sale of marketing rights and data
analysis software to Confirmant. This amount will be released over the life
of the assets to which it relates. Sales by OGS to Confirmant during the
period ended 31 December 2002 amounted to GBP5.4 million (2001: GBP5.3
million)
4 Net Operating Costs
Net operating costs include an amount of GBP1.1 million in respect of
expenses relating to corporate and financial advice received by the Group
through 31 December 2002.
5 Investment Write Down
Relates to provision for permanent diminution in value of OGS' investment
in BioInvent International AB (see Note 8).
6 Tax on loss on ordinary activities
The Group has recognised Research and Development Tax Credits totalling
GBP3.3 million (2001: GBP2.9 million) in the accounts, relating to the period
from 1 January 2002 to 31 December 2002.
7 Loss per ordinary 5p share
Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of ordinary shares in
issue during the year.
For diluted loss per share, the weighted average number of ordinary shares
in issue is adjusted to assume exercise of all options, which would be
potentially dilutive. Due to the loss making position of the Group the
exercise of share options does not increase basic loss per share and
therefore according to FRS14 the basic and diluted loss per share remain
the same.
Basic and diluted 2002 2001
loss per share
GBP'000 '000 pence GBP'000 '000 Pence
______ ______ ______ ______ ______ ______
Loss attributable
to ordinary
shareholders (37,865) 55,653 (68.04) (25,348) 55,052 (46.04)
______ ______ ______ ______ ______ ______
8 Reconciliation of movements in shareholders' funds
Group 2002 2001
GBP'000 GBP'000
______ ______
Loss for the year (37,865) (25,348)
New shares issued 304 10,552
Expenses of share issue (148) (269)
______ ______
Net addition to/ (reduction in) shareholders' funds (37,709) (15,065)
Opening shareholders' funds 194,611 209,676
______ ______
Closing shareholders' funds 156,902 194,611
______ ______
9 Other Investments
NeoGenesis
BioInvent Pharmaceuticals
International Inc Other Total
AB
GBP'000 GBP'000 GBP'000 GBP'000
______ ______ ______ ______
Cost
At 1 January 2002 - 4,251 - 4,251
Additions 3,528 - 156 3,684
At 31 December 2002 3,528 4,251 156 7,935
Provisions
At 1 January 2002 - - - -
Provision Re Diminution in
Value 2,397 - - 2,397
At 31 December 2002 2,397 - - 2,397
Net Book Value
31 December 2002 1,131 4,251 156 5,538
Net Book Value
31 December 2001 - 4,251 - 4,251
On 16 May 2002, OGS subscribed SEK52.0 million in cash at SEK39.1 per share
in BioInvent International AB, as part of a research collaboration.
This investment is not held for resale but having regard to the market value
at 31 December 2002, the directors consider that permanent dimunition in
value of the investment has occurred.
The investment in NeoGenesis Pharmaceuticals is similarly not held for
resale and management do not consider that any permanent dimunition in value
existed at 31 December 2002.
-Ends-
Shareholders can obtain a free copy of this and any other documents filed
with the Securities and Exchange Commission at the SEC's website
(www.sec.gov).
This announcement does not constitute an offer to sell or invitation to
purchase any securities or the solicitation of any vote or approval in any
jurisdiction.
The release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law and therefore persons in such
jurisdictions into which this announcement is released, published or
distributed should inform themselves about and observe such restrictions.
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