Home > Press > Alltracel Releases 2006 Full Year Preliminary Results
Abstract:
Alltracel Pharmaceuticals Plc., ("Alltracel", or "the Company"), (AIM:AP.L), the
medical technology company focused on the Woundcare, Oralcare and
Cardiovascular Health markets, today announces its preliminary results for
the year ended 31 December 2006.
Alltracel Releases 2006 Full Year Preliminary Results
DUBLIN and LONDON | Posted on April 13th, 2007- Turnaround in profitability with a first time full year positive
EBITDA of EUR1.2M versus a loss of EUR1.1M in 2005
- Significant growth in gross margin percentage up 4 points to 39%
driven by the commencement of first technology license revenue in the final
quarter
- Continued strong oral care trade performance with business wins in
all major markets and advanced discussions on potential M&A activity
- Successful development and commercialisation of patented Nanofibre
technology and securing of first license revenue via Nanopeutics(TM)
subsidiary
- Significant technological and commercial progress on proprietary PAGA
science leading to new market entry in CVH and Cosmeceuticals markets in
2007
Financial Highlights:
- First year of positive EBITDA achieved, operating profit increased
and continued revenue growth with margin improvement:
- 2006 EBITDA of EUR1.2M positive versus EBITDA loss of EUR1.1M in 2005
- 2006 Operating profit of EUR315k versus operating loss of EUR1.7M in
2005
- 2006 GM% of 39% versus 35% in 2005
- 2006 revenue of EUR20.1M versus EUR19.2M in 2005
- 2006 closing cash balance of EUR3.0M
Operating Highlights:
- Significant scientific breakthroughs in nanofibre technology for both
proprietary PAGA and other technologies, the establishment of the
Nanopeutics(TM) subsidiary and securing of first revenues:
- Following successful nanofibre trials and development work with
technology partners Elmarco and the University of Liberec; Nanopeutics(TM)
- a specialist subsidiary dedicated to the commercialisation of
Nanospider(TM) technology for the global woundcare and subsequently
specialist healthcare markets - was established.
- Nanopeutics(TM) consequently agreed a license bearing exclusive
nanotechnology development partnership with a global leader in professional
woundcare. This concept development project is ahead of schedule and the
successful conclusion to the development work is expected to lead to an
exclusive global royalty bearing license and supply agreement for
Nanospider(TM) based technology and specialist products and related
services for the professional sector.
- Commercial negotiations with this global leader have now commenced
and an announcement will be made to the market should these negotiations
successfully conclude.
- Nanopeutics(TM) has also signed an exclusive technology and product
concept development agreement with HemCon Medical Technologies Inc., the
haemorrhage control market leaders in military markets.
- Other partnership negotiations on similar exclusive concept
development agreements are ongoing with existing companies in the global
consumer woundcare and the global blood filtration markets.
- Technological breakthroughs in anti-microbial and healing properties
leading to the 2007 launch of Phytopeutics(TM) Dermal Health Technology for
the personal care cosmeceuticals market:
- Following earlier preclinical trials confirming wound and dermal
healing properties in a number of finalised product delivery systems and a
subsequent range of successful specialist dermal technology tests Alltracel
is developing a specialist dermal healing technology for the cosmeceutical
market. This proprietary technology covers a full range of dermal health
solutions for non traumatised skin; from anti-microbial for younger skin to
collagen expression for older skin and will be marketed under the
Phytopeutics(TM) technology brand name.
- Alltracel has already been in partnership discussions with a number
of specialist skin care and cosmeceutical suppliers and customers
internationally. The Company is currently in late stage negotiations with a
global leader in the specialist personal care market for an exclusive
global technology and business development alliance for Phytopeutics(TM)
which is expected to be formalised this quarter.
- Completed successful CVH combination trials and development of a
highly soluble variant and initiation of alliance discussions with North
American trial partner:
- Successful combination trials were completed with both sterol and
statin bio-actives, as was the successful development of a highly soluble
derivative of Alltracel's patented cardiovascular health benefiting
bioactive.
- Subsequent commercialisation negotiations are now in the final stages
with one of the sterol combination trial partners, a North American based
CVH specialist, for the establishment of a technology and business
development alliance to enter the global nutrition market with a range of
patented CVH functional food and bio-active technologies.
- A separate announcement will be made to the market in due course.
- Continued strong organic growth at Westone, the specialist Oral Care
division.
Tony Richardson, Chief Executive Officer, commented:
"2006 has been a watershed year in terms of financial performance,
technology breakthroughs and significant commercial developments. Our 2006
focus was on delivering first time full year profitability through improved
margins and cost controls, developing our proprietary technology to secure
revenue through licensing to large scale global partners in our chosen
markets and driving continued growth in Westone, our specialist oral care
subsidiary. We are pleased to have delivered on these three objectives.
The business reached full year profitability in 2006 for the first
time, in terms of both EDITDA achieving a positive EUR1.2M versus a loss of
EUR1.1M in 2005; as well as in operating profit where the EUR0.3M profit
compared to a loss of EUR1.7M in 2005. This EUR2.0M positive operating
profit swing is a result of both a move to a higher margin license model in
woundcare as well as continued overhead reduction across the business.
Gross margin percentage has grown to 39% for the year versus 35% in 2005
and we will continue to focus on the development of more profitable revenue
streams for our technology.
Our oral care business, Westone, continues to perform well and we have
continued to build on our strong share of the European private label sector
with numerous new business wins from both current and new customers in all
our main markets. We remain strongly committed to this business and are
looking at a number of M&A opportunities in this area.
We had major scientific breakthroughs during 2006 on our proprietary
PAGA technology across all the relevant markets and on a number of
technological platforms including thin film and nanofibre. In particular,
the establishment and immediate performance of our nanofibre specialist
subsidiary Nanopeutics(TM) has been encouraging with our first license
revenue deal secured in professional woundcare and exciting prospects for
significant subsequent revenue flows in professional and in a number of
other woundcare sectors. Securing these type of large scale partnership
deals with global market leaders remains a priority for Nanopeutics(TM) for
2007.
In CVH the successful combination trials and development of the soluble
variant of our bio-active has led to advanced commercial negotiations with
a North American based nutritionals company to establish a specialist
alliance to enter the global nutrition market with a range of patented CVH
functional food and bio-active technologies. We are excited by the
potential here and expect to see Alltracel's first revenue flows in the CVH
market in late 2007.
The ongoing technology development work in woundcare, particularly
around the anti-microbial and healing capabilities of m.doc(TM) and its
variants, has produced a major new market opportunity in the growing and
profitable cosmeceutical marketplace. Cosmeceutical efficacy testing and
ongoing discussions with potential suppliers and partners over the past six
months has led to the development of the Phytopeutics(TM) dermal health
technology brand which are now moving to commercialise in 2007. A further
announcement is expected on this move later this quarter. Finally we
strengthened our overall scientific resources and capability through the
appointment of Dr. Pat Fottrell to the Board in May.
Overall it has been a busy year for Alltracel, and we believe the
Company is well positioned with first class patented technologies,
products, partners and people. We have evolved the business model in the
past year to reflect our current stronger proof points on the base
technologies, our highly developed network of research, development and
manufacturing partners as well as our more profitable and collaborative
partnership route to market.
2007 has begun strongly for Alltracel and we expect to continue the
momentum throughout the year through these evolving capabilities as well as
our innovative approach to both science and commercialisation.
We remain confident of continued growth as we continue the transition
to focus on a licence and technology transfer business model rather than
one focused on product revenue alone."
####
About Alltracel
Alltracel Pharmaceuticals PLC
Consolidated Profit & Loss Account
Unaudited Audited
FOR THE YEAR ENDED 31 DECEMBER 2006
2006 2005
EUR EUR
Turnover including share of associate
turnover 20,054,717 19,244,673
Share of associate turnover (168,263) 0
Group turnover excluding share of
associate turnover 19,886,454 19,244,673
Cost of sales (12,109,070) (12,547,970)
Gross profit 7,777,384 6,696,703
Selling & Distribution Costs (2,705,743) (3,827,509)
Administrative Expenses (4,756,364) (4,552,546)
Operating Profit/ (Loss) - continuing
operations 315,277 (1,683,352)
Share of Loss in Associate undertaking (12,190) -
(Loss) / profit on disposal of financial
assets (17) (148,216)
Interest receivable 62,034 81,727
Interest payable (485,880) (346,646)
(Loss) on ordinary activities before
taxation (120,776) (2,096,487)
Taxation (519,734) (122,082)
Minority Interests (968,072) (751,147)
Loss for the financial period
attributable to ordinary shareholders (1,608,582) (2,969,716)
Loss brought forward at the beginning of
period (19,452,487) (16,543,327)
Translation 86,551 60,556
Loss carried forward at end of period (20,974,518) (19,452,487)
Loss per ordinary share (cent) - basic (1.36) (2.76)
Weighted average number of shares used
in computing loss per ordinary share -
basic 118,017,325 107,444,635
Statement of Total Recognised Gains and
Losses
Unaudited Audited
FOR THE YEAR ENDED 31 DECEMBER 2006
2006 2005
EUR EUR
Loss for the financial period (1,608,582) (2,969,716)
Translation differences 86,551 60,556
Total Recognised Gains and Losses for
the financial period (1,522,031) (2,909,160)
Consolidated Balance Sheet
AT 31 DECEMBER 2006 Unaudited Audited
2006 2005
EUR EUR
Fixed Assets
Intangible assets 5,320,146 5,094,644
Tangible assets 1,094,237 1,044,336
Financial Assets 1,018,302 917,341
7,432,685 7,056,321
Current Assets
Stocks 3,949,456 3,836,664
Debtors 5,376,047 5,184,047
Cash at bank and in hand 3,004,437 2,047,679
12,329,940 11,068,390
Creditors (amounts falling due within
one year) (6,679,244) (7,118,574)
Net Current Assets 5,650,696 3,949,816
Total Assets Less Current Liabilities 13,083,381 11,006,137
Creditors (amounts falling due after
more than one year) (2,536,782) (2,418,897)
10,546,599 8,587,240
Financed By
Capital and Reserves
Called up share capital 1,619,745 1,347,904
Share premium account 28,673,822 25,805,353
Capital conversion reserve fund 6,736 6,736
Other reserve 40,350 32,350
Profit and Loss account - deficit (20,974,518) (19,452,487)
Foreign Exchange Reserve 19,533 (15,730)
Shareholders' equity - all equity
interests 9,385,668 7,724,126
Minority Interest 1,160,931 863,114
10,546,599 8,587,240
Consolidated Cash Flow
FOR THE YEAR ENDED 31 DECEMBER 2006 Unaudited Audited
2006 2005
EUR EUR
Net Cash Inflow/ (Outflow) From
Operating Activities (12,389) (2,206,708)
Returns on Investments and Servicing of
Finance
Interest received 62,034 81,727
Interest paid (485,880) (314,296)
Paid to minority interest (716,852) (751,147)
(1,140,698) (983,716)
Taxation
Taxation Paid (102,142) (362,687)
Capital Expenditure and Financial
Investments
Payments to acquire tangible fixed
assets (360,985) (534,702)
Sale of tangible fixed assets 3,815 39,812
Payments to acquire intangible fixed
assets (445,862) (591,903)
(803,032) (1,086,793)
Acquisations and disposals
Purchase of subsidiary undertaking (1,553,216) (4,469,703)
Cash acquired with subsidiary 0 2,583,454
Net cash outflow for acquisation (1,553,216) (1,886,249)
Cash Outflow Before Management of Liquid
Resources and Financing (3,611,477) (6,526,153)
Management of Liquid Resources
Disposal of current asset investments 0 539,858
Financing
Issue of shares 3,343,983 58,034
Share issue expenses (203,673) (770)
New secured Loans 2,789,766 4,232,321
Repayment of Loans (1,201,191) (600,895)
Capital element of finance lease repaid (160,650) (38,530)
4,568,235 3,650,160
Increase/ (Decrease) in cash 956,758 (2,336,135)
1. Called Up Share Capital Unaudited Audited
2006 2005
EUR EUR
Authorised:
50,000,000,000 ordinary shares of EUR0. 625,000,000 625,000,000
125 each
Issued:
As at 31 December 2005
129,579,598 shares of EUR0.125 each 1,619,745
As at 31 December 2005
107,832,325 shares of EUR0.125 each 1,347,904
2. Share Premium Unaudited Audited
2006 2005
EUR EUR
Balance at beginning of period 25,805,353 23,899,356
Premium on shares issued during the period 3,072,142 1,947,801
Share issue expenses (203,673) (41,804)
Balance at end of period 28,673,822 25,805,353
3. Reconciliation of Movement in Shareholders' Unaudited Audited
Funds 2006 2005
Group EUR EUR
Shareholders' funds at beginning of period 7,724,126 8,631,665
Loss for the year (1,608,582) (2,969,716)
Transfer to Other reserves 43,263 32,350
Translation 86,551 44,826
Net proceeds from issue of share capita 3,140,310 1,985,001
Shareholders' funds at end of period 9,385,668 7,724,126
4. Reconcilation of operating profit to net cash flow from operating
activities
Unaudited Audited
2006 2005
EUR EUR
Operating Profit / (Loss) 315,277 (1,683,352)
Depreciation 498,181 404,369
Amortisation of Intangibles 124,860 127,029
Amortisation of Goodwill 232,921 188,000
Share in Loss of Associate 12,190 -
Gain on sale of fixed asset (17) (19,132)
Increase in stocks (112,792) (1,216,817)
Increase/ (Decrease) in debtors (191,998) 1,254,537
(Decrease)/ Increase in creditors (1,068,105) (1,261,342)
Movement in provisions 177,095 -
Net cash outflow from operating activities (12,389) (2,206,708)
5. Analysis of Net Funds
Non Cash
01/01/2006 Cashflow movement 31/12/2006
Cash 2,047,679 956,758 3,004,437
Total 2,047,679 956,758 0 3,004,437
Bank & third party loans (3,631,426) (1,588,626) (5,220,052)
Finance Leases (326,066) 160,649 (317,084) (482,501)
(1,909,813) (471,219) (317,084) (2,698,116)
Comments
1. The results for the year ended 31 December 2006 are extracted from the Company's Draft statutory financial statements which will be sent to shareholders upon finalisation. The above preliminary announcement constitutes abbreviated group accounts under regulation 40 of the European Communities Group Accounts Regulations 1992. The abbreviated accounts do not constitute group accounts, copies of which are required by law to be annexed to the annual return of the company. Full accounts for the year ended 31 December 2006, upon which the auditors have not yet issued their opinion, have accordingly not yet been filed with the Registrar of Companies. Full accounts for the year ended 31 December 2005 containing an unqualified opinion have been delivered to the Registrar of Companies.
2. These financial statements have been prepared under Irish GAAP on the basis of the policies as set out in the financial statements for the year ended 31 December 2005 published in Alltracel's 2005 annual report.
3. Earnings per ordinary share is computed by dividing the loss on ordinary activities after taxation of EUR1,608,582 (2005: EUR2,969,716) for the financial year by the weighted average number of ordinary shares in issue of 118,017,235 (2005: 107,444,635). Diluted earnings per share are not disclosed as it is anti-dilutive.
The results announcement was approved by the Board of Directors of Alltracel plc on 12 April 2007.
Notes to Editors
Alltracel, (AIM: AP.L) ( http://www.alltracel.com ) the Healthcare Innovation group is focused on taking proprietary technology from research right through to commercialisation in the global healthcare market.
Alltracel Pharmaceuticals Plc., ("Alltracel") was founded in 1996 and is a public company which listed on London's Alternative Investment Market in July 2001.
With corporate headquarters in Dublin, Ireland; Alltracel has a commercial office in London, England; R&D subsidiary in the Czech Republic and manufacturing facilities in Shenzhen, China. Alltracel also has a wide network of research, development and manufacturing partners in Europe, Asia and North America.
Alltracel operates via two main divisions Alltracel Healthcare Group and Alltracel Healthcare Technologies:
Alltracel Healthcare Technologies is focused on the commercialisation effort behind proven innovation technologies and services for the global healthcare market. Alltracel Healthcare Group has a range of stake holdings, joint ventures and wholly owned business units operating in a variety of healthcare categories including Wound Care, Oral Care, Cardiovascular Health.
- Alltracel's specialist Oralcare subsidiary Westone ( http://www.westone.com )is headquartered in London, England and is the leading contract supply and manufacturing partner for the European private label inter-dental market. Westone also partners with a number of leading oral care brandsinternationally.
- Alltracel's specialist Nanotechnology subsidiary Nanopeutics(TM) ( http://www.nanopeutics.net ) is headquartered in Liberec in the Czech Republic and is dedicated to the commercialisation of Nanospider(TM) technology for the global healthcare market.
Alltracel Healthcare Technologies specialises in innovation, research, development and the deployment of proprietary technology in the global healthcare market. Alltracel Healthcare Technologies has established a substantial intellectual property portfolio with patents in a number of healthcare applications areas.
m-doc(TM) is a trademark of Alltracel Pharmaceuticals PLC.
Nanospider(TM) and Nanopeutics(TM) are trademarks controlled by Nanopeutics s.r.o.
Cautionary Statement Regarding Forward-Looking Statements
This announcement contains forward-looking statements. We have based these forward-looking statements on our current plans, expectations and projections about future events. Words like; "intend", "expect", "seek", "will", "plan", "could", "may", and similar expressions often identify forward-looking statements but are not the only ways of doing so. Forward-looking statements involve inherent risks and uncertainties arising from factors outside of our control, such as; financial conditions, regulatory developments, technological developments, activities of our competitors and other factors. We caution you that such factors may cause actual results to materially differ from those contained in forward-looking statements. The forward-looking statements are made only as of the date of this announcement and we do not intend, except as required by law, to update any forward-looking statements to reflect new information or subsequent events or circumstances.
For more information, please click here
Contacts:
Dublin: Denise Cronin
Alltracel: +353-1-235-2162
London: Deborah Scott
Financial Dynamics: +44-(0)207-831-3113
New York: Sean Leous
Financial Dynamics: +1-212-850-5626
Copyright © PR Newswire Association LLC.
If you have a comment, please Contact us.Issuers of news releases, not 7th Wave, Inc. or Nanotechnology Now, are solely responsible for the accuracy of the content.
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