ACTA.L Regulatory News (ACTA)

20 Mar 2007 07:00

Acta S.p.A.20 March 2007 20 March 2007 Acta S.p.A Preliminary Results for the year ended 31 December 2006 Acta develops and manufactures a unique patented catalyst technology calledHYPERMEC, which has been launched initially to the fuel cell market. 2006 Highlights: • Good commercial momentum: shipments and revenues of HYPERMEC increased significantly • Opportunities with HYPERMEC have greatly increased with trials in the automotive market in addition to the portable electronics market • Marketing and distribution agreement with Sumitomo Corporation extended after an excellent first year of promotion in Asia • Technical milestones achieved opening up more target customers and applications • Operational and technical capability significantly enhanced by commissioning of new facility • Recruitment of experienced technical and commercial management and staff • Core patent granted in the EU and further patent applications filed • Operating cash outflow of €3.7m is less than budget Outlook • Significant increase in shipments and revenues in 2007. First quarter revenues will exceed whole of 2006 • New and improved fuel cell catalyst is undergoing testing with select customers prior to a planned second quarter launch • Scale-up of operational capacity to meet increasing order levels • Shimshon Gottesfeld, recipient of the 2006 Grove Medal from the fuel cell industry and industry leader, has joined Acta to help build US activities • Further improvements to unique ammonia electrolyser in response to customer trials • Carbon Trust £170,000 grant awarded for conversion of CO2 into liquid fuels Robert Drummond, Chairman, said today: "The last year has seen a very encouraging response from customers, the supplychain and opinion leaders in the technical community. We are very pleased withthe momentum building behind Acta's core catalysts for fuel cell applicationsand we look forward to developing this with additional product launches in 2007." For further information please contact: Acta S.p.AToby Woolrych Tel. +44 (0) 20 7360 4900 Smithfield ConsultantsGeorge Hudson / Will Henderson Tel. +44 (0) 20 7360 4900 There is a presentation for analysts and investors at 09.30 today at the officesof Smithfield Consultants, 10 Aldersgate Street, London EC1A 4HJ. Notes to Editors Acta, which was admitted to AIM in October 2005, is a manufacturer ofplatinum-free catalysts for the portable electronics and renewables markets.Acta uses a patented manufacturing process to make uniquely active catalysts,branded HYPERMEC, which are able to perform as effectively as expensive platinumcatalysts. Acta's catalysts offer customers technical usage benefits,significant cost savings and allow for the first time the use of ethanol, whichis a safe and environmentally friendly fuel. Products in the target portableelectronics market include laptop computers and mobile phones, and in therenewables market include electricity supply, automotive power and hydrogengeneration. Chairman's Statement The last year has seen a very encouraging response from customers, the supplychain and opinion leaders in the technical community. We are very pleased withthe momentum growing behind Acta's core catalysts for fuel cell applications andwe look forward to developing this with additional product launches in 2007. Summary Acta develops and manufactures a unique patented catalyst technology calledHYPERMEC, which has been launched initially to the fuel cell market. Acta hasseveral other applications for its catalyst technology, including hydrogengeneration. 2006 has seen excellent commercial momentum with shipments and revenuesincreasing through the year. Significantly, we have added automotive customersto our growing penetration of the portable electronics market. Total revenue wasa sixfold increase on 2005. This significant and growing customer interest inHYPERMEC has been matched by the support of key opinion leaders in the industryand an increasing focus on the fuel cell technology which Acta promotes. Thepartnership with Sumitomo Corporation continues to give Acta a real competitiveadvantage in the core Asian market, and we were delighted to deepen and extendthat contract in September. The company also made good technical and operational progress during 2006,achieving its technical milestones. Increasing orders from customers have drivenoperational improvements and a full time production team has now beenestablished to bring production batch sizes up to full capacity. Acta has testedan increasing range of fuels such as glycerol and sodium borohydride, whichoffer further unique choices to the fuel cell industry, and has starteddevelopment work at higher temperatures where performance is correspondinglyenhanced. In January 2007, Acta launched a new and unique catalyst technology for thegeneration of hydrogen from ammonia, which has particular significance for theautomotive market. Performance trials are now underway with a global automotivemanufacturer. Financial Results Acta's post tax losses for the year ended 31 December 2006 amounted to €4.8m(€3.2m in 2005), well within budget and analysts' expectations. The lossincluded €0.8m of non-cash share option expense and excluded €0.3m of grantincome which is expected to be received in 2007 for project costs incurred in2006. Operating cash outflow for the year was €3.7m in 2006 (€3.3m in 2005). Cash atyear end was €7m, sufficient for trading well into 2008. Revenues remained modest but increased ahead of expectations to €70,000 in 2006(€11,000 in 2005). During the year, Acta purchased its manufacturing and development facility inLavoria, Tuscany, for €0.6m. It also continued to invest in state of the artanalytical and testing equipment to support the scale up of manufacturing andincreased development activity. In view of the Company's stage of development, a dividend is not appropriate. Board Changes In May 2006, we welcomed Paul Barritt to the board as Chief Financial Officer.Paul had previously worked with the company both as non executive director andas a director of Market Capital Italia, corporate finance advisor to Acta priorto its IPO. In December 2006, Alberto Nobolo resigned from the Board due to the pressure ofhis university commitments. I would like to thank Professor Nobolo for his helpand support. He has been replaced by Fabio Mastrangelo, who is a highlyexperienced Italian professional who has advised many major companies in Italy.Dr Mastrangelo will replace Professor Nobolo as chairman of the audit committee. Outlook The outlook for 2007 continues to be very promising. We have already made anexcellent start to the year and we look forward to further delivery of Acta'scommercial and technical strategy: • Revenues are expected to continue to rise rapidly and in the first quarter of 2007 will exceed the whole of 2006 • Commercial exploitation of the fuel cell catalyst will continue with increased customer numbers, shipments and order sizes. This engagement may also be reflected in development contracts either with customers or with other important components of the supply chain • The launch of the ammonia electrolyser catalyst in Q1, which opens exciting new opportunities for hydrogen generation • The launch of a new catalyst for fuel cells, targeted for the second quarter, which has even higher performance than the existing HYPERMEC. Pre-launch testing with select customers is underway • Operational scale up of the existing facility will continue with milestones set for growing batch sizes and total production levels to an annualised capacity of €4.5m • Further recruitment of experienced, high quality management and development staff. In March 2007, we were delighted to welcome Dr Shimshon Gottesfeld as an advisor to the company. Dr Gottesfeld is one of the fuel cell industry's leading figures and in 2006 was awarded the Grove medal for his contribution to the industry. Dr Gottesfeld will be advising Acta in particular on how it can best establish itself in the US and gain market presence there • In March 2007, the Carbon Trust awarded Acta and the University of Edinburgh £170,000 over two years to explore a novel use for Acta's technology, this is an exciting endorsement of Acta's potential by a leading carbon reduction funding body Robert DrummondNon Executive Chairman Operating Performance Delivering our strategic plan: Last year we highlighted the five key strands of Acta's business plan. We havedelivered excellent progress in all of these areas during 2006 and expect tocontinue this momentum in 2007. 1. Creating a global awareness of Acta Acta's HYPERMEC technology is novel and global awareness of it was very limitedwhen we joined AIM in late 2005. Increasing awareness and acceptance by theacademic and technical community is important to support our commercial focus onglobal fuel cell developers and users. Last year was a breakthrough for Acta in its global marketing campaign.Presentations and demonstrations at the leading fuel cell exhibitions around theworld have achieved widespread awareness in the industry that HYPERMEC nowoffers a platinum-free solution for fuel cells at a time of increasing platinumprices. Acta has been shipping samples to universities and technical institutesworldwide and has hosted a number of visits from leading global fuel cellexperts. There has been a corresponding dramatic increase in activity andresearch into compatible component technology in the last few months, asoutlined in the commercial review below. We anticipate that research into this technology area will continue toaccelerate and that Acta is likely to have a leading position as supplier ofcatalysts to the industry. The HYPERMEC brand is also securing recognition andis being used by third parties in enquiries to us and in presentations. 2. Manufacturing and selling catalysts for the fuel cell market Acta's strategy is to manufacture and sell catalysts for both automotive andportable applications in the fuel cell market. By manufacturing the catalysts wewill keep control of our intellectual property and remain close to the needs ofour customer base. During 2006 we made excellent commercial progress, selling catalyst to anincreasing number of customers. We also sold electrodes, a value added productsupporting the catalyst, for the first time. This progress is explained ingreater detail in the commercial review below. We made important progress in our manufacturing and development facility inItaly. Investment in the production area continued as we commissioned the mainplant: the main equipment that we have already installed is sufficient to seethe company to profitability, but ongoing enhancements will improve efficiencyand optimise the operational processes. The number of fuel cell testing stationsincreased from just one in late 2005 to fifty by the end of 2006. We installedtwo test stations for data generation at temperatures up to 80C, where mostcurrent fuel cell systems operate. A further ten controlled environment teststations will be installed in 2007. New analytical equipment has also beeninstalled which has greatly enhanced the testing of both production anddevelopment batches. 3. Commercialising opportunities in other markets Acta's unique breakthrough is in catalyst manufacturing: we have always stronglybelieved that the catalysts that we produce will have multiple applications. During 2006 we made excellent progress with new applications: • Proved the concept of the disposable fuel cell, where all the components required for a small passive recharger unit can be assembled for very low cost • Invented and patented a catalyst for ammonia electrolysis to generate hydrogen at room temperature using very low power inputs • Significantly improved the performance of our patented reformer catalyst • Identified other new applications and produced early samples for testing The outlook for 2007 is exciting: • We will generate performance data on a prototype disposable fuel cell unit and explore opportunities for commercialisation • In February we demonstrated the ammonia electrolyser catalyst to the fuel cell industry at the FC Expo in Tokyo. We shall continue development of enhanced electrodes, working with the automotive industry and other interested parties • We will be seeking partners for ethanol reformer trials • We have been awarded a Carbon Trust grant to explore the use of HYPERMEC in conversion of CO2 to liquid fuels • We will continue with other applications under trial at prospective customers and at universities in the UK and Italy These applications are an extension of Acta's core technology. We have takencare to avoid distraction to Acta's activity in fuel cells and we believe thatthese applications may bring substantial new commercial opportunities. 4. Recruiting high quality people The success of Acta is driven by its ability to attract top quality talent fromthe fuel cell industry and other relevant but more commercially matureindustries. In addition to the board appointments discussed above, we weredelighted in 2006 to recruit Dr Xiaoming Ren, a leading global fuel cell expertwith 12 years' experience at Los Alamos National Laboratories and aNASDAQ-listed fuel cell company, and Dr Damian Thomas, an experienced productdevelopment manager from Johnson Matthey. In March 2007, we were delighted towelcome Dr Shimshon Gottesfeld as an advisor. The appointment of Dr Gottesfeldunderlines the keen interest in Acta amongst world technical experts of the highest level. 5. Control of costs in a focused business plan Acta's board is very experienced in the management of growth businesses. We aredetermined to expand in a controlled manner, keeping tight control ofexpenditure and investing in people and assets when we hit our milestones ofcommercial and technical progress. We have been very pleased to achieve all ourtargets for 2006 for significantly less cash outflow than expectations. Theoutlook for 2007 is a controlled increase in cash outflow, in particular to meetthe demands of the company's grant projects, much of which will be matched bygrant income and loans to be received in 2008. Achievements in 2006 and plans for 2007: Commercial Review Acta generated exciting commercial momentum in 2006. Total revenue increasedsixfold to €70,000 in 2006 (€11,000 in 2005). Thirty one non disclosureagreements (NDAs) were signed against thirteen in 2005. Product samples weresold to 51 new customers, compared to 6 in 2005. These products includeddemonstration kits, catalyst powder and, for the first time, catalyst coatedelectrodes. Core to Acta's strategy in Asia is its marketing contract with SumitomoCorporation. Sumitomo offers Acta access to the target customer base at a highlevel and gives superb customer service to our core prospects. Sumitomo hasbacked Acta's technology not only with valuable commercial resource but also byinvesting heavily in local marketing and promotion. We were delighted inSeptember to extend and deepen the contract with Sumitomo. This demonstratesActa's satisfaction with the commercial progress made by Sumitomo and Sumitomo'sconviction that Acta's technology is addressing the commercial needs of themarket place. Commercial acceptance in this highly technical field will also be underpinned bysupport from leading technical Institutes and universities worldwide. Progressin this area has been very exciting in 2006. In the field of fuel cells, LosAlamos National Laboratories held a two day conference in December specificallyto review the field of anionic fuel cells which Acta promotes, citing Acta'sbreakthrough as one of the main motivations for the conference. This wasfollowed by a call for funding by the US Department of Defense in early 2007 tosupport development of the anionic membranes which complement Acta's catalysts.In early 2007 Acta was invited to join IDECAT, the European forum for linkingthe catalyst industry with universities. Other members include Johnson Matthey,BASF, Shell, BP, Dow and Huntsmann. In the field of hydrogen generation from ammonia, Acta responded to a USDepartment of Energy consultation document to develop its breakthroughelectrolyser catalyst. This has now been reflected by the first grants beingmade by the DoE for further research in this field. The latest European fundingplatform (FP7) also specifically includes research into low cost catalysts andthe use of bio-fuels in fuel cells as a result of Acta's work and the support ofEuropean technical institutes. 2007 Commercial targets We are very confident that 2007 will see more commercial progress and visibleevidence that Acta's technology is being actively pursued. Our targets for 2007include: • Continuing revenue momentum as larger volumes of catalyst and electrodes are sold. Revenue in the first quarter of 2007 will exceed that of the whole of 2006 • Selling fuel cell and hydrogen generation catalysts to the automotive and potentially other markets in addition to portable electronics • Creating development partnerships with customers, component makers and technical institutes to accelerate the commercial adoption of Acta's technology • Sampling new catalysts to explore other market opportunities Technology Review and Milestones Acta's technology strategy for 2006 comprised: consolidation of existingtechnology through increased data generation and performance assessment;improvements to the existing technology; securing new intellectual propertythrough patent applications; and continued innovation in the form of novelproducts and applications. These goals have been achieved in full. We have used the increasing testing capability of the business to developperformance data using different fuels and at a range of temperatures. This workhas confirmed that HYPERMEC has a unique ability to work with a wide range ofhydrocarbon and other fuels. Performance data has now been generated on ethanol,methanol, hydrogen, ethylene glycol, glycerol, dextrose, n-butanol, methane,ammonia and sodium borohydride. Each of these fuels offers different featuresfor different applications and so offers unparalleled choice to fuel celldevelopers. Acta's research at higher temperature has also proven thatperformance at 80C is significantly higher than at room temperature, asexpected. We have delivered Phase 1 of our Italian government FIT and FISR grantprojects on time and on budget. We have also improved performance of the base catalyst technology. Significantenhancements have been made to both catalyst and electrode structure. Cathodeperformance has been doubled in line with the milestones set last year. We havealso significantly improved the performance of our ethanol reformer catalyst. In December 2006, Acta received its first full EU patent grant on its coretechnology, confirming the novelty of Acta's templating polymer approach. Actafiled four new patent applications during 2006. We have delivered in full on our plan to continue innovation: We have developed,patented and demonstrated our new catalyst to generate hydrogen from ammonia andpatented our platinum free catalyst for hydrogen generation from waterelectrolysis. We have performed trials and won a Carbon Trust grant to furtherdevelop a catalyst to convert CO2 to liquid fuel and have also made excellentprogress in other potential applications which we intend to patent and discloseduring the course of 2007. 2007 Technical Programme Acta has an exciting ongoing programme of technical work for 2007: • Final development, data generation and launch of an improved fuel cell catalyst in Q2 of 2007. Performance is expected to be 50% higher than current catalyst • Further development work of catalysts and electrodes at higher temperatures with the aim of proving power densities suitable for stationary or automotive applications • Improvements to fuel cell structure • Final development and translation to sample stage of reformer catalyst • Increased efficiency and durability of new ammonia electrolyser catalyst • Further durability data • Produce demonstrator disposable fuel cell and use it to generate performance data with different fuel options • Support the Carbon Trust project to develop a new catalyst to convert CO2 to liquid fuels • Patent applications as appropriate to secure the benefits of the above technology goals Operational Review Acta's manufacturing facility already has enough installed capacity to make Actaprofitable and batch sizes are increasing. Orders were met during 2006 by thedevelopment team, but recent order levels have required us to create a full timeproduction team in 2007. Operational capability was significantly enhancedduring 2006 with new kilns and mills. Electrodes were manufactured in bulk forthe first time: 949 electrodes were sold in 2006 (nil in 2005). New analyticalequipment has also improved our ability to quantitatively analyse each batchprior to shipment. The next year will see the beginning of the process of sustainable operationalscale up, with a programme of testing and reproducibility at increased batchsizes at each stage of the manufacturing process. Targets for volume productionare as follows: Product Now June 07 December 07Anode (g per wk) 100 500 1000Cathode (g per wk) 500 1000 2500Electrodes (units) 150 250 500 The December 2007 target capacity would provide for annualised revenue of around€4.5m assuming all the capacity were sold at current pricing levels. Summary Acta's first calendar year as a public company has been one of significantprogress. We are seeing exciting commercial momentum both in customer activityand in the technical research by third parties that supports it's technology.Acta has continued to mature as a commercial enterprise and in 2007 will addoperational capability to its commercial and development skills. We expect tosee an expansion in Acta's core activities for portable electronics andrenewable energy and further developments in novel applications for Acta'sinnovative technology. Paolo Bert Toby WoolrychChief Executive Officer Chief Operating Officer Financial Review In 2006 Acta achieved excellent commercial and technical progress, whilemaintaining a framework of strict financial discipline. Operating lossesamounted to €5.1 million (2005: €3.2 million), well within expectations andincluding non-cash costs of €778,000 for stock options, while cash outflow fromoperations was significantly lower, at €3.7 million (2005: €3.3 million). Netcash outflow in the year was flat at €4.2 million (2005: €4.2 million, excludingnet proceeds from the issue of share capital). Revenues from the sale of product samples, while still modest, continued to growstrongly, with substantial growth from the first half of 2006 (€14,000) to thesecond half (€56,000), and from 2005 (€11,000) to 2006 (€70,000). We expectcontinued momentum during 2007 as increasing volumes are sampled to our growingcustomer base. Grant income of €48,000 was recognised against costs in relation to thecompletion of Stage 1 of the €0.6 million FISR catalyst development project;while no income has been recognised in the year in relation to Stage 1 of the€2.1 million FIT fuel cell stack development project, completed at the year end,or Stage 2 of the FISR project, due for completion in April 2007. Grant revenuesare recognised upon receipt of the respective grant funding. Operating costs in the year grew to €5.1 million (2005: €3.2 million),reflecting the Company's first full year of operations, including the costs ofthe new technical and office facilities in Lavoria, Tuscany, additionaltechnical and commercial staff, and the recruitment of senior management. As indicated in the half year results, Acta acquired its technical and officefacilities in July 2006, at a cost of €565,000, this facility having previouslybeen rented on a short term arrangement. The purchase was financed through along term mortgage, and delivers a significant unrecognised capital gain,together with a modest saving in net establishment costs. Other capitalexpenditure in the year amounted to €460,000 in tangible assets for scientificanalysis and test equipment (2005: €810,000) and €102,000 in intangible assets(2005: €92,000), relating to patent registration costs. The Company has adopted prudent foreign currency policies and other aspects ofrisk exposure, including Health, Safety and Environmental, these are reviewedregularly by the Board, to ensure legal compliance and prudent risk management. Operating losses and cash outflow are expected to rise during 2007, partlybecause grant project activities will increase in the year, with this increasebeing offset by grant income and loans to be received in 2008. Cash and cash equivalents stood at €7.0 million at the year end, and aresufficient to support the Company well into 2008. Paul BarrittChief Financial Officer Consolidated Income Statement Year ended Year ended Notes 31 December 2006 31 December 2005 •'000 •'000 Revenue 3 70 11 Other operating revenue 2 0 ----------- ------------ 72 11Raw materials and consumablesused 12 (142) (84)Personnel expense 4 (3,088) (1,394)Depreciation and amortisationexpense 9/10 (269) (190)Other operating expenses 5 (1,625) (1,532) ----------- ------------Loss from operations (5,052) (3,189) Financial income 6 242 84Financial expenses 6 (18) (39) ----------- ------------Loss before tax (4,828) (3,144) Current tax expense 7 0 (7)Deferred tax expense 7 0 (8) ----------- ------------Loss for the period (4,828) (3,159) ----------- ------------ Attributable to:Equity holders of the parent (4,779) (3,159)Minority interest (49) 0 ----------- ------------ (4,828) (3,159) ----------- ------------ Basic earnings per share (euro) 8 (0.13) (0.11) Consolidated balance sheet Year ended Year ended Notes 31 December 31 December 2006 2005ASSETS •'000 •'000Non-current assetsProperty, plant and equipment 9 1,754 886Goodwill 10 11 11Intangible assets 10 858 865 ------------ -----------Total non-current assets 2,623 1,762 ------------ ----------- Current assetsInventories 12 74 14Trade receivables 13 55 10Non trade receivables 13 737 691Cash and cash equivalents 14 7,049 11,284 ------------ -----------Total current assets 7,915 11,999 ------------ ----------- ------------ -----------Total assets 10,538 13,761 ------------ ----------- EQUITY AND LIABILITIESEquity attributable to equity holders ofthe parentShare capital 19 216 216Capital reserves 16,686 15,908Retained losses (8,358) (3,578) ------------ ----------- 8,544 12,546 Minority interest 52 100 ------------ -----------Total equity 8,596 12,646 ------------ -----------Non-current liabilitiesEmployee benefits 17 32 10Long term provisions 25 89 89Long term borrowings 15 596 88 ------------ -----------Total non-current liabilities 717 187 ------------ -----------Current liabilitiesFinancial liabilities 24 57 57Short term borrowings 15 70 22Trade and other payables 16 1,098 787Deferred government grants 5 0 47Current tax payables 7 0 15 ------------ -----------Total current liabilities 1,225 928 ------------ ----------- ------------ -----------Total liabilities 1,942 1,115 ------------ ----------- ------------ -----------Total equity and liabilities 10,538 13,761 ------------ -----------These financial statements were approved by the Board of Directors on 16th March2007. Statement of changes in equity Attributable to equity holders of the parent Minority Total Share Reserve Retained Interest Capital Capital Earnings Total •'000 •'000 •'000 •'000 •'000 •'000 ------- ------- -------- ------- -------- ------- ------- ------- -------- ------- -------- -------At 1 January2005 122 482 (419) 185 (1) 184 ------- ------- -------- ------- -------- ------- Issue of sharecapital 94 17,646 0 17,740 0 17,740 Share issueexpenses 0 (2,445) 0 (2,445) 0 (2,445) Share basedpayment 0 225 0 225 0 225 Loss for theperiod 0 0 (3,159) (3,159) 0 (3,159) New sharesissued in IdeaLab 0 0 0 0 101 101 ------- ------- -------- ------- -------- -------At 31 December2005 216 15,908 (3,578) 12,546 100 12,646 ------- ------- -------- ------- -------- ------- ------- ------- -------- ------- -------- -------At 1 January2006 216 15,908 (3,578) 12,546 100 12,646 ------- ------- -------- ------- -------- ------- Share basedpayment 0 778 0 778 0 778 Loss for theperiod 0 0 (4,779) (4,779) (49) (4,828) ------- ------- -------- ------- -------- -------At 31 December2006 216 16,686 (8,358) 8,544 52 8,596 ------- ------- -------- ------- -------- ------- Consolidated cash flow statement Year ended Year ended Notes 31 December 2006 31 December 2005 Cash flows from operatingactivities •'000 •'000 Loss from operations (4,828) (3,159)Adjustments for:Depreciation, amortisation 9/10 269 190Movement in provision foremployees' benefits (TFR) 17 22 8Bonus accrual 16 389 90Income taxes 7 0 15Stock option expenses 18 778 225 ----------- ------------Cash outflow before changes inworking capital and provisions (3,370) (2,631) ----------- ------------ (Increase) in trade and otherreceivables 13 (92) (562)(Increase) in inventories 12 (60) (14)Increase / (decrease) in tradeand other payables 16 (91) (247)(Decrease) / increase indeferred government grants 5 (47) 47Increase in provisions 25 0 89 ----------- ------------Cash outflow from operations (3,660) (3,318) ----------- ------------ Cash flows from investingactivitiesAcquisition of property, plantand equipment net of financeleases 9/15/22 (1,028) (810) Acquisition of intangible assets (102) (92) ----------- ------------Net cash used in investingactivities (1,130) (902) ----------- ------------ Cash flows from financingactivitiesProceeds from the issue of sharecapital 0 17,740Share capital issue expenses 0 (2,445)Proceeds from minorities in IdeaLab 0 101Proceeds from new loan 15 565 0Payment of lease finance (10) 0 ----------- ------------Net cash inflows from financingactivities 555 15,396 ----------- ------------ Net increase (decrease) in cashand cash equivalents (4,235) 11,176Cash and cash equivalents at 1January 11,284 161Effect of exchange ratefluctuations on cash held (0) (53) ----------- ------------Cash and cash equivalents at 31December 7,049 11,284 ----------- ------------ This information is provided by RNS The company news service from the London Stock Exchange