INTERIM RESULTS FOR THE SIX MONTHS ENDED
FINANCIAL HIGHLIGHTS
- Revenue increased by 6% to £34.0 million (H1 2019: £32.1 million)
- Continued strong growth was seen in bioprocessing and commercial development, where revenues increased by 24% to £23.4 million (H1 2019: £18.8 million)
- Licences, milestones & royalties were £10.6 million (H1 2019: £13.3 million), a decline of 20% as the growing royalties and licence fee revenue from Juno/BMS in H1 2020 was not able to match the large £11.5 million (
$15 million ) milestone payment received fromAxovant in H1 2019 - Operating expenses increased by 41% to £29.1million (H1 2019: £20.6 million)
- Operating EBITDA1 loss and operating loss were £0.4 million and £5.8 million respectively (H1 2019 losses of £1.4 million and £6.1 million respectively)
- Gross proceeds of £40.0 million (£38.6m net of expenses) were raised from new and existing investors through a successful placing in
June 2020 . This provided additional funding to the Group in order to continue to leverage the significant opportunities in the growing cell and gene therapy market, both with current and future partners, and also provided additional resources for the Group manufacture of potential COVID-19 vaccine candidates - Cash consumed during operations was £0.9 million compared to £1.3 million generated in H1 2019
- Cash at
30 June 2020 was £50.6 million (31 December 2019 : £16.2 million), which included proceeds from the placing earlier in June - The Group’s capital expenditure decreased to £5.3 million (H1 2019: £14.9 million) following the completion of the first phase of construction of the Oxbox bioprocessing facility at the end of 2019
.
1Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and share based payments. A reconciliation to GAAP measures is provided on page 9.
OPERATIONAL HIGHLIGHTS (including post period-end events)
- In March, a new licence and five-year clinical supply agreement was signed with
- Post the extension of the Novartis partnership by a further five years announced in
December 2019 , the collaboration continues to strengthen with a sixth vector construct added in the first quarter of 2020 - Global roll out of Kymriah® in both relapsed or refractory B-cell acute lymphoblastic leukaemia (r/r ALL) and relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) indications continues at pace, with more than 25 countries worldwide having approved reimbursement in at least one indication in over 250 qualified treatment centres
- In August, Novartis announced positive data from the Phase II ELARA trial of Kymriah® in patients with relapsed or refractory (r/r) follicular Lymphoma (FL), with filing for this indication anticipated in the US during 2021. Novartis received FDA Regenerative Medicine Advanced Therapy (RMAT) designation for r/r FL earlier this year
COVID-19 Vaccine and Agreement with AstraZeneca
- In April, the Group joined a consortium led by the
Jenner Institute ,Oxford University to rapidly develop, scale and manufacture a potential vaccine for COVID-19, ChAdOx1 nCOV-19. Subsequently, AstraZeneca entered into an agreement withOxford University for the global development and distribution of the vaccine, renaming the programme AZD1222 - In May, the Group entered into a one year clinical and commercial supply agreement with AstraZeneca to GMP manufacture the adenoviral vector based COVID-19 vaccine candidate (AZD1222) with multiple batches to be produced through 2020
- In June,
Oxford Biomedica signed a five-year agreement with VMIC (Vaccines Manufacturing and Innovation Centre) to enable the rapid manufacture of viral vector based vaccines and with VMIC to provide equipment for two GMP suites in Oxbox to further scale up AZD1222 or other viral vector vaccine candidates - In September, the Group announced an 18-month supply agreement under a three-year Master Supply and Development Agreement with AstraZeneca for large-scale manufacture of AZD1222, for which the Group was paid a £15 million capacity reservation fee. The Group expects, subject to satisfactory scale up of the process and continuation of the vaccine programme, to receive additional revenues in excess of £35 million until the end of 2021
Other Partnership news and updates
- In July, the Group announced that it had signed a three-year Clinical Supply Agreement (CSA) with Axovant Gene Therapies for the manufacture and supply of Parkinson’s disease gene therapy programme AXO-Lenti-PD. This CSA builds on the worldwide licence agreement signed between the two companies in
June 2018 - In August, the Group signed a development, manufacture and licence agreement with Beam Therapeutics Inc. for next generation CAR-T programmes and put in place a three year clinical supply agreement. This now takes the total number of the Group’s partner programmes to 20
Corporate Developments and Expansion
- Following completion of the building phase of the new 84,000 sqft manufacturing facility (Oxbox) at the end of 2019, the MHRA regulatory approval of the first two suites was received in May. The first partner batches were being produced within Oxbox by the end of the second quarter 2020
- In June, the Group welcomed Dr
Roch Doliveux as Non-executive Chairman, following the retirement of prior Chairman Dr.Lorenzo Tallarigo
“The first six months of the year, continuing into the second half of 2020, have probably been the busiest I have known in my time at
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Dr.
Claes Spång
About
OVERVIEW
The first half of 2020, despite the global COVID pandemic, has seen
Oxford Biomedica’s involvement, initially with the
OPERATIONAL REVIEW
In March, the Group entered into a major new licence and five-year clinical supply agreement with
Under the terms of the agreement
Following the extension of the Novartis collaboration by a further five years in
Global roll out of Kymriah® in both relapsed or refractory B-cell acute lymphoblastic leukaemia (r/r ALL) and relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) indications continues at pace with more than 25 countries worldwide having approved reimbursement in at least one indication in over 250 qualified treatment centres. Kymriah® continues to build momentum showing 27% growth in the second quarter of 2020, over the first quarter of 2020, reporting sales in the quarter of
In August, Novartis announced positive data from the Phase II ELARA trial of Kymriah® in patients with relapsed or refractory follicular Lymphoma, with the filing in this indication anticipated in the US during 2021. Novartis received FDA Regenerative Medicine Advanced Therapy (RMAT) designation earlier in the year. The RMAT programme was created to expedite the development and review of regenerative medicine therapies intended to treat, modify, reverse or cure a serious disease.
COVID-19 Vaccine and Agreement with AstraZeneca
In April, the Group joined a consortium led by the
In May, the Group entered into a one year clinical and commercial supply agreement with AstraZeneca to GMP manufacture adenoviral vector based COVID-19 Vaccine candidate AZD1222. This initial agreement required
In June,
In September, the Group announced an 18-month supply agreement under a three year Master Supply and Development Agreement with AstraZeneca for the large-scale manufacture of AZD1222 and was paid a £15 million capacity reservation fee. The Group expects, subject to satisfactory scale up and continuation of the programme, to receive additional revenue in excess of £35 million until the end of 2021.
Beam Therapeutics
Post the period end, in August,
Under the terms of the Agreement,
Existing partner updates
During the first half, the Group continued to make progress with its CDMO partnerships despite the turbulent external environment. This includes the Group’s
In May,
Other programmes with
Axovant Gene Therapies
Following on from the initial worldwide licence agreement signed in
Under the terms of the CSA,
Sanofi – Ocular assets
In June, the Group announced it had been informed by Sanofi that it intended to return the rights to ophthalmology programmes
Unencumbered proprietary pipeline programmes
In the first quarter the Group undertook an internal pipeline review to prioritise where preclinical investment will be made on its wholly-owned early-stage pipeline assets. The current portfolio consists of five programmes targeting a number of indications in ophthalmology, oncology, liver and CNS disorders.
OXB-302 (CART-5T4) is currently the Group’s priority candidate and targets haematological tumours. The 5T4 antigen has been shown to be highly expressed on various haematological tumours as well as most solid tumours with restricted expression on normal tissues. The Group continues to advance preclinical work on OXB-302 as the Group gets the programme ready for entry into the clinic.
OXB-203, currently in preclinical studies, is targeting Wet AMD and uses our technology to deliver a gene to express afibercept (a VEGF-trap). This programme builds on the demonstrated long term gene expression data seen with its predecessor OXB-201. In addition, the Group is continuing preclinical work on OXB-204 (LCA10) and OXB-103 (ALS) and a new preclinical program, OXB-401 (liver indication) has been initiated.
In August, the Group signed a research collaboration agreement with
Innovation and LentiVector® platform development
The Group’s world leading LentiVector® platform is built on four pillars: expertise, IP (both patents and know-how), facilities and quality systems. The LentiVector® platform underpins not only the collaborations with Oxford Biomedica’s partners but also Oxford Biomedica’s own proprietary pipeline. The Group is continuing to innovate by adding new IP to its platform such as with the TRiPSystem™, SecNuc™, U1 / U2 in order to increase productivity and quality and LentiStable™ for packaging and producer cell lines.
Investment in automation and robotics is also enabling the continued development of the LentiVector® platform and the research and development collaboration signed with Microsoft to improve yield and quality of next generation vectors continues to progress well.
Expansion of capacity
Post completion of the building phase of the new 84,000 sqft manufacturing facility (Oxbox) at the end of 2019, MHRA regulatory approval of the first two suites and supporting areas such as warehouse, cold chain facilities and QC laboratories was received in May. First partner batches were being produced within Oxbox by the end of the second quarter. Following on from the agreement with VMIC for equipment for the two further suites, the first of these has now received MHRA approval and vaccine production commenced. The Group expects the second of these suites and therefore all four suites in the first phase of Oxbox development to be operational by early in the fourth quarter 2020. Additionally, the instalment of the equipment for the first fill/finish suite is progressing well and is expected to be completed by year end. This first phase of development fits out approximately 45,000 sqft with the remaining fallow area available for flexible expansion in the future.
Building work is also currently being undertaken at Windrush Court to convert office space into GMP laboratories to meet the expected near term demand in commercial development and analytics. The expansion of these GMP facilities is expected to be completed by the end of 2020. In conjunction with this, a lease has been taken on at a new site within the
Corporate and organisational development
In
In June, the Group also announced the appointment of Dr.
Outlook
With the growth of the Group’s partner programmes to 20, the Group expects the underlying lentivector based revenues to continue to grow from bioprocessing and commercial development activities and, as previously observed, the Group expects a stronger second half to the year. In addition, the partnership with AstraZeneca for their potential COVID-19 vaccine (AZD1222) is likely to boost revenues in the year in excess of £10 million subject to successful scale up and regulatory approval of the fourth bioprocessing suite within Oxbox early in the fourth quarter of 2020. Operating EBITDA for the Group is expected to be in the low to mid-single digit million range for the year on this basis.
Capex spend in the second half of the year will be higher than the spend in the first half with conversion of the office space within Windrush Court to GMP laboratories and final costs associated with the completion of the installation of the fill/finish line within Oxbox.
Head count is expected to rise from 584 as of the 30 June to over 650 by year end, as employees are recruited for the additional manufacturing suites within Oxbox as well as in supporting areas such as QA and engineering.
Discussions and feasibility studies are ongoing with various other potential gene and cell therapy partners and the Group aims to increase not only the number of partners but also the number of programmes worked on by existing partners and reconfirms that three new lentiviral vector-based CDMO partnership agreements are expected to be signed during 2020. Additionally, the Group is targeting the spin out / out-licence of one in-house product candidate during 2020 and potential partnership discussions are ongoing, although timings of these transactions are less predictable than those in the CDMO area.
Looking further ahead, with a strengthened balance sheet and with an ever increasing number of partners working with the Group,
Financial Review
The first half of 2020 has been a period of operational resilience and revenue growth for the Group. Whilst the spread of the Coronavirus pandemic saw adjustments to the Group’s operating methods and employees working from home where possible, the Group was able to continue bioprocessing product and perform commercial development activities in its laboratories throughout the period. A great achievement which allowed us to generate revenue growth during a very difficult period for businesses across the world. From first joining the Oxford University Jenner institute consortium in April, the Group ultimately signed an agreement with AstraZeneca in May to develop and bioprocess batches of their COVID vaccine. This, together with the new commercial agreements entered into with Juno/BMS and Beam, should see the Group continue to deliver increased commercial activity through the remainder of 2020 if it is able to continue without its operations being interrupted.
The Group also raised £40 million of new equity (£38.6 million net of expenses) in
The key financial indicators used by the Board are set out in the table below and the highlights are:
- Revenue (£34.0 million) increased by 6% over H1 2019 (£32.1 million) as a result of the 24% increase in bioprocessing and commercial development revenues and £10.6 million of Licence fees, consisting mainly of the Juno/BMS license fee and Novartis royalties
- Operational results (Operating loss and Operating EBITDA1loss) of £5.8 million and £0.4 million respectively improved compared to prior year due to higher revenues partly offset by an investment in its bioprocessing operations and people due to the Oxbox bioprocessing facility coming online in H1 2020
- Operating activities used cash of £0.9 million compared to generating £1.3 million in H1 2019 as increased revenues in H1 2020 were not yet sufficient to offset the additional investment in our operations
- Capital expenditure decreased as expected from £14.9 million in H1 2019 to £5.3 million in H1 2020 mainly as a result of the completion of construction of the Oxbox bioprocessing facility
- Cash burn2 decreased from a net outflow of £16.9 million in H1 2019 to an outflow of £4.2 million due to the reasons explained above
- Cash at
30 June 2020 was £50.6 million compared to £26.1 million at30 June 2019
KEY FINANCIAL INDICATORS (£ m) | H1 2020 | H1 2019 | |
Revenues | Bioprocessing/commercial development | 23.4 | 18.8 |
Licence fees, milestones & royalties | 10.6 | 13.3 | |
Total | 34.0 | 32.1 | |
Operating loss | (5.8) | (6.1) | |
Operating EBITDA1 | (0.4) | (1.4) | |
Cash (consumed)/generated from operating activities | (0.9) | 1.3 | |
Capital expenditure | (5.3) | (14.9) | |
Cash burn2 | (4.2) | (16.9) | |
Period end cash | Cash | 50.6 | 26.1 |
Headcount | Period end | 584 | 480 |
Average | 575 | 465 |
- Operating EBITDA (Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and Share Based Payments) is a non-GAAP measure often used as a surrogate for operational cash flow as it excludes from operating profit or loss all non-cash items, including the charge for share options. A reconciliation to GAAP measures is provided on page 9.
- Cash burn is net cash generated from operating activities and less net finance costs paid plus capital expenditure. A reconciliation to GAAP measures is provided on page 12.
The Group evaluates its performance by making use of alternative performance measures as part of its Key Financial Performance Indicators (refer table above). The Group believes that these Non-GAAP measures, together with the relevant GAAP measures, provide an accurate reflection of the Group’s performance over time. The Board has taken the decision that the Key Financial Performance Indicators against which the business will be assessed are Revenue, Operating EBITDA and Operating Profit/(loss).
Revenue
Revenues were £34.0 million in H1 2020, 6% above the £32.1 million achieved in H1 2019.
£m | H1 2020 | H1 2019 |
Bioprocessing/commercial development | 23.41 | 18.81 |
Licence fees, milestones & royalties | 10.6 | 13.3 |
Revenue | 34.0 | 32.1 |
Revenues from bioprocessing/commercial development were 24% higher in H1 2020 as compared to H1 2019, with increased commercial development revenues driven by a greater volume of development activity from customers, Juno/BMS, Beam, and the
Revenues from licence fees, milestones and royalties, including the £6.2 million (
1 Included within H1 2019 bioprocessing/commercial development revenues is £0.4m of revenues, recognised as a result of the customer process development claim issue identified in the 2019 Annual report, which was reversed in H2 2019 when the issue was identified by the Group. In H1 2020 after further investigations it was subsequently identified that a portion of the development work was unaffected by the issue and thus the £0.4m revenues was re-recognised in H1 2020. Refer note 15 page 27 for further information.
Operating EBITDA
£m | H1 2020 | H1 2019 |
Revenue | 34.0 | 32.1 |
Other operating income | 0.3 | 0.5 |
Total expenses1 | (34.7) | (34.0) |
Operating EBITDA2 | (0.4) | (1.4) |
Depreciation, amortisation, share option charge and fair value adjustments of available-for-sale assets | (5.4) | (4.7) |
Operating (loss)/profit | (5.8) | (6.1) |
1 Cost of goods plus research, development and bioprocessing costs excluding depreciation, amortisation and share option charge. A reconciliation to GAAP measures is provided on page 10.
2 Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and share based payments.
Total expenses in H1 2020 were £34.7 million, compared with £34.0 million in H1 2019, a 2% increase on the H1 2019. The increase was driven by the investment in additional bioprocessing capacity required in bringing online the Oxbox bioprocessing facility in H1 2020.
As a result of the increased expenses, the Operating EBITDA loss in H1 2020 was £0.4 million. In H1 2019, the Group generated an Operating EBITDA loss of £1.4 million, the difference being £1.0 million.
Total expenses
In order to provide the users of the accounts with a more detailed explanation of the reasons for the year on year movements of the Group’s operational expenses included within Operating EBITDA, the Group has added together research and development, bioprocessing and administrative costs and has removed depreciation, amortisation and the share option charge as these are non-cash items which do not form part of the Operating EBITDA alternative performance measure. As Operating profit/(loss) is assessed separately as a key financial performance measure, the year on year movement in these non-cash items is then individually analysed and explained specifically in the Operating and Net profit/(loss) section. Expense items included within Total Expenses are then categorised according to their relevant nature with the year on year movement explained in the second table below:
£m | H1 2020 | H1 2019 |
Research and development costs | 15.2 | 12.5 |
Bioprocessing costs1 | 9.2 | 4.1 |
Administrative expenses | 4.7 | 4.0 |
Operating expenses | 29.1 | 20.6 |
Depreciation, amortisation & share option charge | (4.7) | (3.5) |
Adjusted operating expenses | 24.4 | 17.1 |
Cost of Sales | 10.3 | 16.9 |
Total expenses | 34.7 | 34.0 |
1 Bioprocessing costs have increased from the prior period due to additional facility costs, headcount and related spend incurred due to the Group’s investment in additional bioprocessing capacity at Oxbox.
The table below shows total expenses by type of expenditure (excluding depreciation, amortisation and other non-cash items):
£m | H1 2020 | H1 2019 |
Raw materials, consumables and other external bioprocessing costs | 6.4 | 7.7 |
Personnel-related | 21.2 | 17.9 |
External R&D expenditure | 3.1 | 3.9 |
Other costs | 4.0 | 4.5 |
Total expenses | 34.7 | 34.0 |
Raw materials, consumables and other external bioprocessing costs have decreased as a result of a lower number of batches bioprocessed in H1 2020 as compared to H1 2019, with all the batches in H1 2020 have been produced using our more efficient lower cost bioreactor process. Personnel related costs are higher due to average employee numbers increasing from 465 in H1 2019 to 575 in H1 2020. External R&D expenditure was lower due to lower levels of research and clinical development spend due to the impact of COVID-19. Other costs were in line with prior year as the recognition of a liability from a customer regarding certain process development work performed in 2019 was offset by a higher large company research and development tax credit.
Operating loss and net loss
£m | H1 2020 | H1 2019 |
Operating EBITDA1 | (0.4) | (1.4) |
Depreciation, amortisation and share option charge | (4.7) | (3.5) |
Change in fair value of assets at fair value through profit & loss | (0.7) | (1.2) |
Operating loss | (5.8) | (6.1) |
Interest | (0.4) | (5.0) |
Foreign exchange revaluation | - | (1.0) |
Taxation | (0.5) | 1.9 |
Net loss | (6.7) | (10.2) |
1 Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Fair value adjustments of available-for-sale assets and share based payments.
In arriving at the Operating loss, the Operating EBITDA loss of £0.4 million was further impacted by additional depreciation, amortisation and the share option charge; as well as the change in fair value of assets at fair value through profit & loss.
Depreciation increased by £0.8 million mainly due to depreciation on the increased asset base including the Oxbox manufacturing facility and related bioprocessing assets. The share option charge increased by £0.4 million due to the increased employee headcount.
In H1 2020 a £0.7 million (2019: £1.2m loss) change in fair value was recognised on the
The impact of these charges resulted in an operating loss of £5.8 million compared to a loss of £6.1 million in 2019.
The interest charge decreased by £4.6 million compared to H1 2019 as a result of the early repayment of the Oaktree loan, with only interest arising on the IFRS 16 leases remaining as compared to £0.3m in H1 2019.
As the Oaktree loan was repaid in
The tax credit in H1 2020 reverted to a liability of £0.5m as the Group ceased being eligible to claim a research and development tax credit under the Government’s small company scheme. The £0.5m liability represents a liability on the large company research and development taxation credit included under Other costs which the Group is still able to claim.
As a consequence of the above, the net loss for H1 2020 was £6.7 million, as compared to a loss of £10.2 million in H1 2019.
Segmental analysis
Reflecting the way the business is being managed by the Senior Executive Team, the Group reports its results within two segments, namely the “Platform” segment which includes the revenue generating bioprocessing and process development activities for third parties, and internal technology projects to develop new potentially saleable technology, improve the Group’s current processes and bring development and manufacturing costs down. The other segment, “Product”, includes the costs of researching and developing new product candidates.
H1 2020
£m | Platform | Product | Total |
Revenues | 33.7 | 0.3 | 34.0 |
Operating EBITDA1 | 1.8 | (2.2) | (0.4) |
Operating loss | (3.1) | (2.7) | (5.8) |
H1 2019
£m | Platform | Product | Total |
Revenues | 19.3 | 12.8 | 32.1 |
Operating EBITDA1 | (11.0) | 9.6 | (1.4) |
Operating (loss)/profit | (15.4) | 9.3 | (6.1) |
1 A reconciliation to GAAP measures is provided on page 9.
Revenues from the platform segment were higher than H1 2019 due to an increase in bioprocessing and commercial development revenues, as well as £6.2m of Juno/BMS license fee recognised. Operating results were improved mainly due to the revenue increase of £14.4 million.
Results from the product segment were lower as the £11.5 million (
Cash flow
£m | H1 2020 | H1 2019 | |
Operating loss | (5.8) | (6.1) | |
Depreciation, amortisation and share option charge | 4.7 | 3.5 | |
Revaluation of equity investments | 0.7 | 1.2 | |
Operating EBITDA | (0.4) | (1.4) | |
Working capital | (0.5) | 2.7 | |
Cash (consumed)/generated from operations | (0.9) | 1.3 | |
Capital expenditure | (5.3) | (14.9) | |
Sale of available-for-sale assets | 2.5 | - | |
Interest paid, less received | (0.5) | (3.3) | |
Cash burn | (4.2) | (16.9) | |
As discussed above, the Operating EBITDA loss for the first six months of 2020 was £1.0 million higher than the £1.4 million loss achieved in H1 2019. The negative inflow from working capital was mainly as a result of the increased cost base due to investment in increasing our bioprocessing capacity. Capital expenditure decreased from £14.9 million in H1 2019 to £5.3 million in H1 2020 as the construction of the first phase of the Oxbox bioprocessing facility came to an end.
Interest paid of £0.5 million in H1 2020 was £2.8 million lower than in H1 2019 mainly due to the repayment of the Oaktree loan at the end of
Statement of financial position
Non-current assets – Property, plant and equipment increased from £61.9 million to £66.1 million due to the £5.3 million of capital expenditure incurred as part of the construction and fit-out of the Oxbox bioprocessing facility, and £2.4 million of right-of-use assets recognised upon signing of the corporate office lease in
Current assets – Assets at fair value through profit & loss decreased by £2.4m as a result of the sale of Orchard shares, and the devaluation of the Orchard investment based on the quoted Orchard share price at year end. Trade and other receivables and Contract assets increased from £30.0 million to £31.4 million mainly due to the increased large company research and development tax credit in H1 2020. Inventories increased to £3.2 million from £2.6 million at
Current liabilities – Trade and other payables have increased from £14.3 million at the start of the year to £16.4 million due to increased employee headcount and operational activities. Contract liabilities have increased by £0.2 million due to the recognition of income received in advance in relation to commercial development activities. Deferred income decreased due to the recognition of Innovate grant income. Lease liabilities increased by £0.3 million due to the recognition of an IFRS 16 liability with regards to the new corporate office.
Non-current liabilities – A £0.6m provision was recognised as a result of the recognition of a liability due to a customer regarding an aspect of certain process development work performed in 2019 being the main contributor to the £0.7 million increase in provisions. Lease liabilities increased by £1.9 million due to the recognition of an IFRS 16 liability with regards to the new corporate office. Contract liabilities decreased by £0.6 million as the liabilities became current. Deferred tax decreased due to the sale of shares and the change in fair value of the Orchard asset held at fair value through profit and loss.
The Group’s cash resources at
Financial outlook
The Group continues to target improved financial performance in 2020. The contracts signed in 2020 with Juno/BMS, AstraZeneca, Beam and
As before, the Group continues to recognise the importance of focusing on building and maintaining its commercial relationships with its customers, old and new. The success of our customers is seen as key to driving growth in new customer relationships in the rest of 2020 and 2021.
The Group continues to develop its proprietary pipeline, in preparation for further discussions regarding out-licensing or spinout of these programmes, but also to determine which programmes it would focus on in preclinical development to potentially take through into early stage clinical studies in the coming 12-18 months.
Principal risks and uncertainties
The principal risks and uncertainties facing the Group are unchanged, other than as set out below, from those set out in the 2019 Annual Report & Accounts which is available on the Group’s website at www.oxb.com.
UK’s departure from
The impact of the UK’s departure from the
Depending on the free trade agreement terms negotiated between EU Member States and the
COVID-19
As a result of the COVID-19 pandemic, the Group conducted an assessment of the potential financial and operational risks to the business. While the Group is yet to experience any significant impact from the virus, there may be an impact on revenue, supply chain and operating facilities if the situation worsens. Management continues to constantly monitor the ongoing situation.
The Group has implemented a daily senior management working group to monitor current COVID-19 developments and GOV.UK guidance, to risk assess the Group’s supply chain and to direct the Group’s phased response. The Group is working with staff, customers and suppliers to monitor any potential disruption and, so far, the Group has not experienced any, and does not currently expect to experience, significant supply issues or any changes in overall customer demand.
The Group continues to monitor the potential impact on the supply chain, with a particular focus on key manufacturing and process development inventories. To date we have not seen any impact but we are aware there is the potential for shortages in certain inventories globally.
The Group has a duty of care towards all employees, and therefore we expect some of our staff to be required to self-isolate to prevent the possible spread of infection. The Group has taken action to mitigate the spread of infection at our facilities through enhanced cleaning processes, staggering of shifts and the provision of hand sanitiser in common areas. The Group continually assesses the risks for employees, regularly communicates with staff on the ongoing situation, and has implemented steps to contain any spread such as publicising good personal hygiene practices, enforcing a travel management prevention strategy and encouraging people to work from home.
As part of the 2020 strategy, the Group has increased the level of finished goods held in warehouses which will mitigate the risk in the short term against labour shortages and subsequent production delays at our key suppliers.
Going concern
The financial position of the Group, its cash flows and liquidity position are described in the primary statements and notes to these financial statements.
Notwithstanding a loss for the half year ended
The Group has raised an additional £40 million in cash through a successful equity placement during
The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these interim financial statements which indicate that, taking account of severe but plausible downsides, including the impacts of COVID-19, the Group will have sufficient funds, through cash balances and operational activities, to meet its liabilities as they fall due for that period.
Consequently, the Directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the interim financial statements on a going concern basis.
Although the UK’s decision to leave the
Therefore, the Directors have continued to adopt the going concern basis of preparation in the interim financial statements.
Consolidated Statement of Comprehensive Income
for the six months ended
Six months ended Unaudited | Six months ended Unaudited | ||
Notes | £’000 | £’000 | |
Revenue | 33,979 | 32,101 | |
Cost of sales | (10,314) | (16,831) | |
Gross profit | 23,665 | 15,270 | |
Bioprocessing costs | (9,195) | (4,116) | |
Research and development costs | (15,168) | (12,484) | |
Administrative expenses | (4,692) | (4,028) | |
Other operating income | 327 | 463 | |
Change in fair value of available-for-sale asset | 8 | (703) | (1,166) |
Operating loss | (5,766) | (6,061) | |
Finance income | 13 | 70 | |
Finance costs | 6 | (373) | (6,122) |
Loss before tax | (6,126) | (12,113) | |
Taxation | (553) | 1,945 | |
Loss and total comprehensive expense for the period | (6,679) | (10,168) | |
Basic and diluted loss per ordinary share | 5 | (8.69p) | (14.83p) |
The notes on pages 19 to 27 form part of this financial information.
Consolidated statement of financial position
as at
Notes | 30 June 2020 Unaudited £’000 | 31 December 2019 Audited £’000 | |
Assets | |||
Non-current assets | |||
Intangible assets | 84 | 95 | |
Property, plant and equipment | 7 | 66,094 | 61,932 |
Trade and other receivables | 10 | 3,605 | 3,605 |
Deferred tax assets | - | 359 | |
69,783 | 65,991 | ||
Current assets | |||
Inventory | 9 | 3,174 | 2,579 |
Assets held for sale | 8 | 366 | 2,719 |
Trade and other receivables | 10 | 14,209 | 16,639 |
Contract assets | 11 | 17,185 | 13,406 |
Current tax assets | 4,858 | 5,351 | |
Cash and cash equivalents | 12 | 50,619 | 16,243 |
90,411 | 56,937 | ||
Current liabilities | |||
Trade and other payables | 13 | 16,391 | 14,297 |
Contract liabilities | 13,394 | 13,156 | |
Deferred income | 647 | 1,006 | |
Lease liabilities | 14 | 827 | 482 |
31,259 | 28,941 | ||
Net current assets | 59,152 | 27,996 | |
Non-current liabilities | |||
Lease liabilities | 14 | 9,789 | 7,907 |
Provisions | 15 | 5,806 | 5,086 |
Contract liabilities | 1,063 | 1,695 | |
Deferred income | 3,373 | 3,310 | |
Deferred tax liability | 61 | 359 | |
20,092 | 18,357 | ||
Net assets | 108,843 | 75,630 | |
Shareholders’ equity | |||
Share capital | 16 | 40,967 | 38,416 |
Share premium | 16 | 258,701 | 222,618 |
Other reserves | 2,291 | 2,291 | |
Accumulated losses | (193,116) | (187,695) | |
Total equity | 108,843 | 75,630 |
The notes on pages 19 to 27 form part of this financial information.
Consolidated Statement of Cash Flows
for the six months ended
Notes | Six months ended Unaudited £’000 | Six months ended Unaudited £’000 | |
Cash flows from operating activities | |||
Cash (consumed in)/generated from operations | 17 | (938) | 1,305 |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | 7 | (5,350) | (14,928) |
Proceeds on disposal of property, plant and equipment | - | 2 | |
Proceeds on disposal of investments | 8 | 2,523 | 148 |
Interest received | 13 | 49 | |
Net cash used in investing activities | (2,814) | (14,729) | |
Cash flows from financing activities | |||
Interest paid | - | (3,352) | |
Proceeds from issue of ordinary share capital | 40,167 | 55,306 | |
Costs of share issues | (1,533) | (640) | |
Payment of lease liabilities | (506) | (471) | |
Loans repaid | - | (43,589) | |
Net cash generated from financing activities | 38,128 | 7,254 | |
Net increase/ (decrease) in cash and cash equivalents | 34,376 | (6,170) | |
Cash and cash equivalents at | 16,243 | 32,244 | |
Cash and cash equivalents at | 12 | 50,619 | 26,074 |
The notes on pages 19 to 27 form part of this financial information.
Statement of Changes in Equity Attributable to Owners of the Parent
for the six months ended
Share capital £’000 | Share premium £’000 | Merger reserve £’000 | Warrant reserve £’000 | Accumulated Losses £’000 | Total £’000 | |||
At | 33,034 | 172,074 | 2,291 | 1,218 | (173,876) | 34,741 | ||
Six months ended | ||||||||
Profit for the period | - | - | - | - | (10,168) | (10,168) | ||
Total comprehensive income for the period | - | - | - | - | (10,168) | (10,168) | ||
Transactions with owners: | ||||||||
Share options | ||||||||
Proceeds from shares issued | 112 | 374 | - | - | - | 486 | ||
Value of employee services | - | - | - | - | 965 | 965 | ||
Issue of shares excluding options | 3,875 | 49,600 | - | - | - | 53,475 | ||
Costs of share issues | - | (640) | - | - | - | (640) | ||
Exercise of warrants | 1,345 | 1,218 | - | (1,218) | - | 1,345 | ||
At | 38,366 | 222,626 | 2,291 | - | (183,079) | 80,204 | ||
Six months ended | ||||||||
Profit for the period | - | - | - | - | (5,898) | (5,898) | ||
Total comprehensive income for the period | - | - | - | - | (5,898) | (5,898) | ||
Transactions with owners: | ||||||||
Share options | ||||||||
Proceeds from shares issued | 50 | 121 | - | - | - | 171 | ||
Value of employee services | - | - | - | - | 1,282 | 1,282 | ||
Costs of share issues | - | (129) | - | - | - | (129) | ||
At | 38,416 | 222,618 | 2,291 | - | (187,695) | 75,630 | ||
At | ||||||||
Six months ended | ||||||||
Loss for the period | - | - | - | - | (6,679) | (6,679) | ||
Total comprehensive expense for the period | - | - | - | - | (6,679) | (6,679) | ||
Transactions with owners: | ||||||||
Share options | ||||||||
Proceeds from shares issued | 51 | 116 | - | - | - | 167 | ||
Value of employee services | - | - | - | - | 1,258 | 1,258 | ||
Issue of shares excluding options | 2,500 | 37,500 | - | - | - | 40,000 | ||
Cost of share issues | - | (1,533) | - | - | - | (1,533) | ||
At | 40,967 | 258,701 | 2,291 | - | (193,116) | 108,843 |
The notes on pages 19 to 27 form part of this financial information.
Notes to the Financial Information
1. General information and basis of preparation
These condensed consolidated interim financial statements for the six months ended
The financial information set out above does not constitute the Company’s Statutory Accounts. Statutory accounts for the year ended
These interim financial statements have been prepared applying consistent accounting policies to those applied by the Group in the 2019 Annual Report.
These condensed consolidated interim financial statements were approved by the Board of Directors on
There have been no material related party transactions in the first six months of 2020 and no material change in related-party transactions from those described in the last annual report.
2. Going concern
The financial position of the Group, its cash flows and liquidity position are described in the primary statements and notes to these financial statements.
Notwithstanding a loss for the half year ended
The Group has raised an additional £40 million in cash through a successful equity placement during
The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these interim financial statements which indicate that, taking account of severe but plausible downsides, including the impacts of COVID-19, the Group will have sufficient funds, through cash balances and operational activities, to meet its liabilities as they fall due for that period.
Consequently, the Directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the interim financial statements on a going concern basis.
Although the UK’s decision to leave the
Therefore, the Directors have continued to adopt the going concern basis of preparation in the interim financial statements.
3. Accounting policies
The accounting policies, including the classification of financial instruments, applied in these interim financial statements are consistent with those of the annual financial statements for the year ended
Judgements
Going concern
Management and the Directors have had to make estimates and important judgements when assessing the going concern status of the Group. The conclusions of these estimates and judgements are reported in several places in these condensed consolidated interim financial statements including the Financial Review (page 8) and Note 2 to the financial statements (page 19).
Contract revenues: Identification of performance obligations, allocation of revenue and timing of revenue recognition
The Group has identified three key areas of judgement within the collaboration agreements entered into during the period. Firstly, in relation to the number of distinct performance obligations contained within each collaboration agreement; secondly the fair value allocation of revenue to each performance obligation; and thirdly the timing of revenue recognition based on the achievement of the relevant performance obligation. The sales royalties contained within the collaboration agreements qualify for the royalty exemption available under IFRS 15 and will only be recognised as the underlying sales are made.
Estimations
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. The nature of estimation means that actual outcomes could differ from those estimates
Lease liability discount rate
Since the rates implicit in our leases are not readily determinable, we use the Group’s incremental borrowing rates (the rate of interest that we would have to pay to borrow on a collateralised basis over a similar term for an amount equal to the lease payments in a similar economic environment) based on the information available at commencement date in determining the discount rate used to calculate the present value of lease payments. The rates have been determined using previously available information on borrowing rates as well as indicative borrowing rates that would be available to us based on the value, currency and borrowing term provided by financial institutions, adjusted for Group and market specific factors. Although we do not expect our estimates of the incremental borrowing rates to generate material differences within a reasonable range of sensitivities, judgement is involved in selecting an appropriate rate, and the rate selected for each lease will have an impact on the value of the lease liability and corresponding right-of-use (ROU) asset in the Consolidated Statement of financial positions.
Percentage of completion of bioprocessing batch revenues
Bioprocessing of clinical/commercial product for partners is recognised on a percentage of completion basis over time as the processes are carried out. Progress is determined based on the achievement of verifiable stages of the bioprocessing process. Revenues are recognised on a percentage of completion basis and as such require judgement in terms of the assessment of the correct stage of completion including the expected costs of completion for that specific bioprocessing batch. The value of the revenue recognised and the related contract asset raised with regards to the bioprocessing batches which remain in progress at period end is £13,020,000. If the assessed percentage of completion was 10 percentage points higher or lower, revenue recognised in the period would have been £1,302,000 higher or lower.
Percentage of completion of fixed price process development revenues
As it satisfies its performance obligations the Group recognises revenue and the related contract asset with regards to fixed price process development work packages. Revenues are recognised on a percentage of completion basis and as such require judgement in terms of the assessment of the correct percentage of completion for that specific process development work package. The value of the revenue recognised and the related contract asset raised with regards to the work packages which remain in progress at period end is £5,521,000. If the assessed percentage of completion was 10 percentage points higher or lower, revenue recognised in the period would have been £552,000 higher or lower.
Provision for out of specification bioprocessing batches
Bioprocessing of clinical/commercial product for partners is recognised on a percentage of completion basis over time as the processes are carried out. Progress is determined based on the achievement of verifiable stages of the process.
As the Group has now been bioprocessing product across a number of years, and also in a commercial capacity, the Group has assessed the need to include an estimate of bioprocessed product for which revenue has previously been recognised and which may be reversed should the product go out of specification during the remaining period over which the product is bioprocessed. In calculating this estimate the Group has looked at historical rates of out of specification batches across the last four and a half years, and has applied the percentage of out of specification batches to total batches produced across the assessed period to the revenue recognised on batches which have not yet completed the bioprocessing process at year end. This estimate, based on the historical percentage, may be significantly higher or lower depending on the number of bioprocessing batches actually going out of specification in future. If the historical percentage had been 10% higher or lower, the estimate would be £92,000 higher or lower. The estimate will increase or decrease based on the number of bioprocessing batches which go out of specification over the historic assessment period, but also the number of bioprocessing batches which have not yet completed the bioprocessing process at year end.
Consequently, bioprocessing revenue of £0.9 million (2019: £1.5 million) has not been recognised during 2020 with the corresponding credit to contract liabilities. This unrecognised revenue will be recognised as the batches complete bioprocessing, although batches bioprocessed in 2020 and beyond will be included in the estimate as they progress through the bioprocessing process.
4. Segmental analysis
The chief operating decision-makers have been identified as the Senior Executive Team (SET), comprising the Executive Directors, Chief Technical Officer, Chief Scientific Officer, Chief Business Officer, Chief Operations Officer, Chief Medical Officer, General Counsel and
- Platform - this segment consists of the revenue generating bioprocessing and process development activities undertaken for third parties. It also includes internal technology developments and the costs involved in developing platform related intellectual property;
- Product - this segment consists of the clinical and preclinical development of in vivo and ex-vivo gene and cell therapy products which are owned by the Group.
Revenues, other operating income and operating (loss)/profit by segment
Operating EBITDA and Operating (loss)/profit represent the Group’s measures of segment profit & loss as they are a primary measure used for the purpose of making decisions about allocating resources and assessing performance of segments.
Platform | Product | Total | |
H1 2020 | £’000 | £’000 | £’000 |
Revenue | 33,724 | 255 | 33,979 |
Other operating income | 327 | - | 327 |
Operating EBITDA¹ | 1,807 | (2,205) | (398) |
Depreciation, amortisation and share based payment | (4,221) | (444) | (4,665) |
Change in fair value of available-for-sale asset | (703) | - | (703) |
Operating (loss)/profit | (3,117) | (2,649) | (5,766) |
Net finance cost | (360) | ||
Loss before tax | (6,126) |
Platform | Product | Total | |
H1 2019 | £’000 | £’000 | £’000 |
Revenue | 19,338 | 12,763 | 32,101 |
Other operating income | 463 | - | 463 |
Operating EBITDA¹ | (11,025) | 9,615 | (1,410) |
Depreciation, amortisation and share based payment | (3,127) | (358) | (3,485) |
Change in fair value of available-for-sale asset | (1,166) | - | (1,166) |
Operating (loss)/profit | (15,318) | 9,257 | (6,061) |
Net finance cost | (6,052) | ||
Loss before tax | (12,113) |
1 Operating EBITDA is defined as Earnings Before Net Finance Costs, Tax, Depreciation, Amortisation, Change in fair value of available-for-sale assets and share based payments
Other operating income of £0.3 million (2019: £0.5 million) includes grant income of £0.3 million (2018: £0.5 million) which is used to develop the Group’s supply chain capabilities and is included within the Platform segment. No grant income to fund clinical and preclinical development is included within the Product segment.
Costs are allocated to the segments on a specific basis as far as is possible. Costs which cannot readily be allocated specifically are apportioned between the segments using relevant metrics such as headcount or direct costs.
A geographical split of operating (loss)/profit is not provided because this information is not received or reviewed by the chief operating decision-maker and the origin of all revenues is the
A segmental or geographical split of assets and liabilities is not provided because this information is not received or reviewed by the chief operating decision-maker. All assets are located within the
Disaggregation of revenue
Revenue is disaggregated by the type of revenue which is generated by the commercial arrangement. Revenue shown in the table below is denominated in sterling and is generated in the
For the 6 months ended 30 June
Platform | Product | Total | |
2020 | £’000 | £’000 | £’000 |
Bioprocessing/Commercial development | 23,083 | 255 | 23,338 |
Licence fees, Milestones & Royalties | 10,641 | - | 10,641 |
Total | 33,724 | 255 | 33,979 |
Platform | Product | Total | |
2019 | £’000 | £’000 | £’000 |
Bioprocessing/Commercial development | 17,585 | 1,253 | 18,838 |
Licence fees, Milestones & Royalties | 1,753 | 11,510 | 13,263 |
Total | 19,338 | 12,763 | 32,101 |
Revenue by geographical location
Revenue by customer location | 30 June 2020 £’000 | 30 June 2019 £’000 |
18,972 | 16,662 | |
Rest of world | 15,007 | 15,439 |
Total revenue | 33,979 | 32,101 |
In the first half of 2020 Novartis and Juno/BMS each generated more than 10% of the Group’s revenue.
5. Basic earnings and diluted earnings per ordinary share
The basic loss per share of (8.69p) (2019: 14.83p) has been calculated by dividing the loss for the period by the weighted average number of shares in issue during the six months ended
The Group made a loss for the period ended
6. Finance costs
Finance costs of £0.4 million (2019: £6.1 million) consist of lease liability interest recognised as part of the implementation of IFRS 16 (Leases) of £0.4 million (2019: £0.3m). 2019 also included interest on the Oaktree loan of £4.8 million and a foreign exchange revaluation loss on the loan of £1.0 million, this facility was repaid on
7. Property, plant & equipment
Freehold property | Leasehold improvements¹ | Office equipment and computers | Bioprocessing and Laboratory equipment | Right-of-use assets | Total | ||
£’000 | £’000 | £’000 | £’000 | £’000s | £’000 | ||
Cost | |||||||
At | 21,427 | 21,908 | 7,395 | 20,174 | 11,400 | 82,304 | |
Additions at cost | 177 | 2,392 | 779 | 2,002 | 2,461 | 7,811 | |
Reclassifications | 212 | 461 | 210 | (883) | - | - | |
Disposals | - | - | - | - | - | - | |
At | 21,816 | 24,761 | 8,384 | 21,293 | 13,861 | 90,115 | |
Depreciation | |||||||
At | 8,360 | 1,679 | 3,054 | 6,440 | 839 | 20,372 | |
Charge for the period | 1,031 | 387 | 500 | 1,146 | 585 | 3,649 | |
Disposals | - | - | - | - | - | - | |
At | 9,391 | 2,066 | 3,554 | 7,586 | 1,424 | 24,021 | |
Net book amount at | 12,425 | 22,695 | 4,830 | 13,707 | 12,437 | 66,094 | |
Net book amount at | 13,067 | 20,229 | 4,341 | 13,734 | 10,561 | 61,932 |
8. Assets held at fair value through profit and loss
Reconciliation of opening and closing balances:
30 June 2020 £’000 | 31 December 2019 £’000 | |
At | 2,719 | - |
Reclassification of investment as available-for-sale asset | 873 | 10,966 |
Costs to sell available-for-sale asset | - | (94) |
Change in fair value of available-for-sale asset | (703) | (1,883) |
Sale of shares | (2,523) | (6,270) |
At | 366 | 2,719 |
During the first half of 2019 the Group determined that the equity held in
9. Inventory
30 June 2020 £’000 | 31 December 2019 £’000 | |
Raw materials | 3,174 | 2,579 |
Inventory | 3,174 | 2,579 |
Inventories constitute raw materials held for commercial bioprocessing purposes.
During 2020, the Group wrote down £4,000 (2019: £83,000) of inventory which is not expected to be used in production or sold onwards.
10. Trade and other receivables
Current | 30 June 2020 £’000 | 31 December 2019 £’000 |
Trade receivables | 8,398 | 12,766 |
Other receivables | 539 | 563 |
Other tax receivable | 3,388 | 1,537 |
Prepayments | 1,884 | 1,773 |
Total trade and other receivables | 14,209 | 16,639 |
Non-current | 30 June 2020 £’000 | 31 December 2019 £’000 |
Other receivables | 3,605 | 3,605 |
11. Contract Assets
30 June 2020 £’000 | 31 December 2019 £’000 | |
Contract assets | 17,185 | 13,406 |
12. Cash and cash equivalents
30 June | 31 December | |
2020 | 2019 | |
£’000 | £’000 | |
Cash at bank and in hand | 50,619 | 16,243 |
13. Trade and other payables
30 June 2020 £’000 | 31 December 2019 £’000 | |
Trade payables | 5,843 | 7,311 |
Other taxation and social security | 1,063 | 1,042 |
Accruals | 9,485 | 5,944 |
Total trade and other payables | 16,391 | 14,297 |
14. Leases
The Group leases many assets including land and buildings, equipment and IT equipment. Information about leases for which the Group is a lessee is presented below:
Right-of-use assets
Property £‘000 | Equipment £‘000 | IT Equipment £‘000 | Total £’000 | |
Balance at | 10,419 | - | 142 | 10,561 |
Additions | 2,324 | 137 | - | 2,461 |
Depreciation charge for the period | ( 533 ) | ( 22 ) | ( 30 ) | ( 585 ) |
Balance at | 12,210 | 115 | 112 | 12,437 |
The additions in the period related to the inception of a Corporate head office lease (2019: nil)
Lease liabilities
£’000 | |
Maturity analysis – contractual undiscounted cash flows | |
Less than one year | 1,508 |
One to five years | 5,765 |
More than five years | 8,393 |
Total undiscounted cash flows at | 15,666 |
£’000 | |
Lease liabilities included in the Statement of Financial Position | |
Current | 827 |
Non-current | 9,789 |
Total lease liabilities at | 10,616 |
Amounts recognised in the statement of comprehensive income
£’000 | |
Interest on lease liabilities | 367 |
Expense relating to short-term leases | 72 |
Amounts recognised in the statement of cash flows
£’000 | |
Total cash outflow for leases | 506 |
15. Provisions
In 2020 the Group signed a lease on a new corporate office in
The dilapidations provisions relate to the anticipated costs of restoring the leasehold Oxbox, Yarnton, and Windrush Innovation Centre properties in
Customer process development claim
As disclosed in the 2019 Annual report, the Group identified an issue regarding an aspect of certain process development work performed on behalf of a customer in 2018 and 2019 which potentially gave rise to a material claim against the Group. The Group has been in communication with the third party and has recognised a provision for a customer claim with an expected settlement value of £609,000. The Group has insurance cover, which they intend to use, however the Group cannot be confident to a highly probable level that the full extent of any potential claim would be covered, therefore no contingent asset has been recognised.
As at
16. Share capital and Share premium
At
On
187,865 shares were created as a result of the exercise of options by employees during the period.
17. Cash flows from operating activities
Reconciliation of operating loss to net cash (used in)/ generated from operations
Six months ended | Six months ended | |
£’000 | £’000 | |
Continuing operations | ||
Operating loss | (5,766) | (6,061) |
Adjustment for: | ||
Depreciation | 3,649 | 2,782 |
Amortisation of intangible assets | 11 | 11 |
Loss on disposal of property, plant and equipment | - | 6 |
Charge in relation to employee share scheme | 1,257 | 965 |
Change in fair value of available-for-sale asset | 703 | 1,166 |
Costs to sell available-for-sale asset | - | 97 |
Changes in working capital: | ||
Increase in contract assets and trade and other receivables | (2,216) | (5,169) |
Increase in trade and other payables | 2,094 | 1,844 |
(Decrease)/ increase in contract liabilities and deferred income | (690) | 4,522 |
Increase in provisions | 615 | 8 |
(Increase)/ decrease in inventories | (595) | 1,134 |
Net cash (used in)/ generated from operations | (938) | 1,305 |
18. Statement of Directors’ responsibilities
The Directors of
The condensed consolidated interim financial statements are the responsibility of, and have been prepared by, the Directors. The Directors confirm that they have been prepared in accordance with the Disclosure and Transparency Rules of the
- An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
- Material related party transactions in the first six months and any material change in related-party transactions described in the last annual report.
By order of the Board
Chief Executive Officer
INDEPENDENT REVIEW REPORT TO
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (
Directors’ responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the
As disclosed in note 18, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the DTR of the
for and on behalf of KPMG LLP
Chartered Accountants
Reading
RG1 3AD
Shareholder Information
Directors (Non-executive Chairman) (Chief Executive Officer) (Chief Financial Officer) (Deputy Chairman and Senior Independent Director) (Non-executive Director) (Non-executive Director) (Independent Non-executive Director) Robert Ghenchev (Non-executive Director) | Financial adviser and joint broker Peel Hunt 120 London Wall Financial adviser and joint broker Financial and Corporate Communications 41 Lothbury Registered Auditor Reading RG7 4SD Solicitor 265 Strand Registrars The Registry Beckenham Kent BR3 4TU Company Secretary and Registered Office Windrush Court Tel: +44 (0) 1865 783 000 Fax: +44 (0) 1865 783 001 enquiries@oxb.com www.oxb.com |
Source:
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