Source - RNS
RNS Number : 8817J
Cronin Group PLC
15 September 2016
 

15 September 2016

Cronin Group Plc

("Cronin" or the "Company")

 

Interim results for the six months ended 30 June 2016

 

 

Cronin Group Plc ("the Company") the AIM listed company with a business activity of the digitization of chemical space coupled with innovative chemical drug discovery, announces its unaudited half year results for the period ended 30 June 2016.

 

Highlights:

·      Substantive progress in further developing the Company's strategic roadmap to digitize chemistry

·      Steve Coles joined the Company from main list Mears Group plc as Chief Technology Officer

·      Loss of £0.31 million after tax (2015 first half: loss £0.43 million including £0.38 million attributable to discontinued operations)

·      Cash and short term deposits at 30 June 2016 of £ 5.10 million (31 December 2015: £5.42 million)

·      Net assets at 30 June 2016 of £ 9.32 million (31 December 2015: £9.63 million)

 

 

James Ede-Golightly, Chairman, said: "We continue to build on the principles of the Chemputer ™prototypes developed by the Research Group and are progressing first opportunities to commercialise products facilitated by the digitization of chemistry, confident that this will present a multiple range of opportunities to commercialise and add value for shareholders in the medium term".

 

 

Contacts:




Cronin Group Plc

www.croningroupplc.com

James Ede-Golightly, Chairman

T: 01481 701 564



WH Ireland Limited

www.whirelandplc.com  

John Wakefield

T: 0117 945 3470

 

 

 

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

 

 

 

 

 

 

 

 

 

 

 

 

CHAIRMAN'S STATEMENT

 

During the six months to 30 June 2016 (the Reporting Period") and in the current half year to date, the Cronin Group Plc and its subsidiary Cronin3D Limited ("the Group") has made substantive progress in further developing the Company's strategic roadmap to digitize chemistry. During the past six months the Company has strengthened its fundamental research and technical proof of concept work with evaluation of complementary commercial and partnering opportunities addressable within the medium term.

 

The Group's ultimate vision is to commercialise the Chemputer™, an autonomous universal digital synthesis engine, which intends to open up chemistry to a wider user-base via digitization.  This will allow chemical synthesis to be flexible and widely accessible irrespective of access to physical infrastructure and chemical knowledge. By way of its Research Agreement with the Glasgow University research team ("the Research Group") led by Professor Lee Cronin, the Group has continued to progress development of a number of Chemputer™ prototype systems and exemplify the applicability of digitizing chemistry, for example by successfully manufacturing small molecules using a digital code that could allow reproducible processes not achievable easily by other means.

 

In consultation with Professor Cronin and the Group's Advisory Board, which as reported previously was constituted in March 2016 to review, evaluate and advise on the commercial and technical activities of the Group, the Company is currently progressing product specifications that will build on the principles of chemistry, automation and intelligence engendered in the Chemputer™ prototype systems produced by the Research Group.  Underpinned by the premise of the digitization of chemistry, the Company is implementing a software and hardware framework that will ensure we secure a leadership position in chemistry big data which we believe will have significant value.

 

Over and above near term applications envisaged by the Group, further, longer term commercial applications enabled by the Chemputer™ have been covered in the media during the Reporting Period. For example, ahead of this year's Farnborough International Airshow, Professor Cronin, as Regius Professor of Chemistry at the University of Glasgow and Founding Scientific Director at Cronin Group PLC, was reported to be exploring with engineers and scientists at BAE Systems how development of the Chemputer™ will eventually lead to the digital programming of complex chemical and material systems.  On the basis of engagement like this initiated by Professor Cronin, the Group is involved in a number of discussions with other blue chip companies which would envisage access to the Group's products and IP.

 

During the Reporting Period Steve Coles joined the Company from main list Mears Group plc as Chief Technology Officer. Steve is leading development of the Group's commercial grade products, including integrated precursors to the Chemputer™ system.  He has over 20 years of technical development experience, where he has been central to the development and commercialisation of integrated software and hardware in the chemistry and biology arenas.  Steve is an expert in developing high performance, integrated, multi-tier, data environments.

 

Financial Review

The Group incurred a loss after tax of £0.31 million for the half year ended 30 June 2016 (2015 first half: loss of £0.43 million including loss from discontinued operations of £0.38 million), which mainly reflects our continued research and development expenditure in this period.

 

Net cash outflows of £0.33 million during this first six months reduced cash balances to £5.10 million at 30 June 2016 compared with cash balances at 31 December 2015 of £5.42 million.

 

Outlook

The concept of the Chemputer™ exemplifies a new approach to chemistry that combines software, hardware that will drive the digitization of chemistry allowing the digitally-driven manufacturing of chemicals and   algorithm-driven discovery of new targets, leading to a step change in reproducibility and digital collaboration.

 

We continue to build on the principles of the Chemputer ™prototypes developed by the Research Group and are progressing first opportunities to commercialise products facilitated by the digitization of chemistry, confident that this will present a multiple range of opportunities to commercialise and add value for shareholders in the medium term.

 

 

 

James Ede-Golightly

Non-executive Chairman

15 September 2016

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS TO 30 JUNE 2016

 

 

 


6 months ended 30 June

 2016

6 months ended 30 June

 2015

Year ended 31 December 2015


(Unaudited)

(Unaudited)

(Audited)


£'000

£'000

£'000





Continuing operations




Revenue

-

-

-

Research and development costs

(277)

-

(112)

Administrative costs

(81)

(55)

(279)

Operating loss

(358)

(55)

(391)

Finance income

15

2

2

Loss before tax

(343)

(53)

(389)

Income tax credit

33

-

-

Loss from continuing operations

(310)

(53)

(389)

Discontinued operations

                    

                 

                 

Loss from discontinued operations

-

(375)

(772)

Loss and total comprehensive loss for the period

(310)

(428)

(1,161)


Loss and total comprehensive loss for the period attributable to:




The Company's equity shareholders

(310)

(344)

(1,032)

Non-controlling interest

-

(84)

(129)


(310)

(428)

(1,161)





Loss per share attributable to the equity holders of the Company:




Basic and diluted (pence) on continuing

operations

(0.06)

(0.03)

(0.13)

Basic and diluted (pence) on total operations

(0.06)

(0.22)

(0.39)

 

 

The six months ended 30 June 2015 figures have been re-presented to reflect the income and expenses of discontinued operations as a separate single line item.

 

 

 


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2016

 

 


Share equity

Share premium

Merger reserve

 

 

 

Reverse acquisition reserve

Retained earnings

 

Share based payment reserve

Non-controlling interests

Total


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 December 2014

1,977

10,603

6,369

(6,831)

(9,738)

319

253

2,952

Total comprehensive loss for the six months to 30 June 2015

 -

-

-

-

(344)

-

(84) 

(428) 

Transactions with owners:









Share based payments

-

-

-

-

-

4

-

4

Balance at 30 June 2015

1,977

10,603

6,369

(6,831)

(10,082)

323

169

2,528

Total comprehensive loss for the six months to 31 December 2015

-

-

-

-

(688)

-

(45)

(733)

Transactions with owners:









Share capital reduction

(1,957)

(10,603)

-

-

12,560

-

-

-

Issue of shares for cash

13

3,287

-

-

-

-

-

3,300

Issue of shares on acquisition of subsidiary

20

-

4,880

-

-

-

-

4,900

Distribution of shares in demerged subsidiary

-

-

-

-

(222)

-

-

(222)

Reversal of reserves and interest on demerger of subsidiary

-

-

(6,369)

6,831

(462)

-

(124)

(124)

Share based payments

-

-

-

-

304

(323)

-

(19)

Balance at 31 December 2015

53

3,287

4,880

-

1,410

-

-

9,630

Total comprehensive loss for the six months to 30 June 2016

-

-

-

-

(310)

-

-

(310)

Balance at 30 June 2016

53

3,287

4,880

-

1,100

-

-

9,320


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

 


As at 30 June

As at 30 June

As at 31 December


2016

2015

2015


(Unaudited)

(Unaudited)

(Audited)


£'000

£'000

£'000

Assets




Non-current assets




Intangible assets and goodwill

4,218

315

4,221

Investments

3

-

3

Plant and equipment

-

57

-


4,221

372

4,224

Current assets




Trade and other receivables

                53

           106

            35

Corporation tax recoverable

-

           65

        -

Cash and cash equivalents

           5,096

           2,139

        5,424


           5,149

        2,310

       5,459

Liabilities




Current liabilities




Trade and other payables

 (50)

 (141)

 (53)

Net current assets

 5,099

 2,169

 5,406

Non-current liabilities

           

        

        

Provisions

-

(13)

-

Total net assets

        9,320

        2,528

      9,630

Equity and liabilities




Shareholders' equity




Called up share capital

        53

        1,977

      53

Share premium

3,287

10,603

3,287

Merger reserve

4,880

6,369

4,880

Reverse acquisition reserve

-

(6,831)

-

Retained earnings

1,100

(10,082)

1,410

Share based payment reserve

 -

 323

 -

Total equity

9,320

2,359

9,630

Non-controlling interests

-

169

-

Total equity attributable to shareholders of the Company

        9,320

        2,528

      9,630

 

 

 

 


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 


6 months ended 30 June 

6 months ended 30 June

Year

 ended 31 December


2016

2015

2015


(Unaudited)

(Unaudited)

(Audited)


£'000

£'000

£'000

Cash flows from operating activities




Operating loss from continuing operations

(358)

(55) 

(391)

Loss from discontinued operations

-

(375)

(772)

Adjustments for:


                

              

Tax credit included in loss from discontinued operations

(18)

(47)

Loss on demerger of subsidiary included in loss from discontinued operations

-

-

199

Depreciation and amortisation charges

3

42

65

Profit / (loss) on disposal of plant and equipment

(6)

Share based payments charge / (credit)

(15)

Operating cash outflows before movement in working capital

(355)

(401)

(967)

(Increase)/decrease in trade and other receivables

(18)

(44)

26

(Decrease)/increase in trade and other payables

(3)

28

-   

Cash used in operations

(376)

(417)

(941)

Interest received

15

3

2

Taxation received

33

-

47

Net cash used in operating activities

(328)

(414)

(892)

Cash flows from investing activities



                

Purchase of intangible assets

-

(9)

(16)

Purchase of property, plant and equipment

-

(1)

-

Proceeds from sale of plant and equipment

-

-

6

Cash and bank in subsidiary at acquisition

-

-

725

Cash and bank in demerged subsidiary

-

(262) 

Net cash (used) / generated from investing activities

-

(10)

453

Cash flows from financing activities

             

             

                

Proceeds from issue of share capital

-

-

3,300

Cash generated from financing activities

-

-

3,300

Net (decrease) / increase in cash and cash equivalents

(328)

(424)

2,861

Cash and cash equivalents at beginning of period

5,424

 2,563 

2,563

Cash and cash equivalents at end of period

5,096

2,139 

5,424

 

 

Note: Copies of the Half Year Interim Report

The half year interim report for the six months ended 30 June 2016 is available on the Company's website: www.croningroupplc


This information is provided by RNS
The company news service from the London Stock Exchange
 
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