Sofix Ucits Etf Regulatory News (BGX)

26 Jun 2007 07:15

Bioganix PLC26 June 2007 BIOGANIX PLC ('Bioganix' or 'the Group') PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 Bioganix, the AIM listed waste management services group, is pleased to announceits maiden preliminary results for the year ended 31 December 2006. HIGHLIGHTS • Successful placing and admission to AIM in April 2006, raising £2.52m net • Turnover up 130% to £1.6m • Opening of first full scale commercial plant in Suffolk in May 2006 • Capacity of Suffolk plant increased from 24,000 to 35,000 tonnes p.a. during second half of the year- significantly ahead of schedule • Commencement of DEFRA sponsored research project at Wharton site • Planning permission granted, after year end, for a 48,000 tonne capacity plant at Sharpness, Gloucester, to be operational in early 2008. 'Long term' lease agreed with British Waterways Board for 55,000 sq ft site • Further placing announced today raising approximately £2,250,000 net of expenses Commenting on the results, the Chairman, Andrew Walker, said; "This has been a year of significant achievements for Bioganix. Our flotationon AIM has allowed the continued development of our composting facilities at atime when the waste market is evolving and demanding more innovative wastesolutions. Gate fees and waste volumes have increased and we are continuallydeveloping important strategic commercial partnerships. Your Board is veryencouraged by the progress made in this year and believe that legislativechanges as well as a broader awareness of waste management issues will continueto support the ongoing growth of your business." Enquiries: Nick Helme, Managing Director, Bioganix plc Tel: 01568 619 115Julian Morgan, Finance Director, Bioganix plc Tel: 01568 619 101 Mike Coe, Director, Blue Oar Securities Plc Tel: 0117 933 0020 Paul Vann/Tom Cooper, Winningtons Financial PR Tel: 0117 920 0092 www.bioganix.co.uk CHAIRMAN'S STATEMENT INTRODUCTION I am pleased to report on the Company's results for the year ended 31 December2006. This was a momentous year for the Company in which the highlights werethe successful flotation of the Company on AIM in April 2006 and the opening ofthe Company's first full-scale commercial plant at Parham in Suffolk. FINANCIAL PERFORMANCE Turnover for the 12 months ended 31 December 2006 was £1,600,626 compared with£696,735 for the 12 month period ended 31 December 2005. Not included inturnover are the receipts from the DEFRA "New Technologies DemonstratorProgramme" and the amortisation of the capital grant received in respect of theSuffolk Plant which are included in other operating income. Pre-tax losses for the period were £63,581 compared with a pre-tax profit of£6,936 for the year ending 31 December 2005. The loss for the period is statedafter charging £24,291 (2005: NIL) in respect of FRS20 (Share Options). As inthe previous year, the Group has taken advantage of the research and developmenttax credit arrangements and, therefore, the loss after tax was £39,543 comparedwith a profit after tax in the previous year of £90,734. Net assets at 31December 2006 were £4,467,990 compared with net liabilities of £736,202 at theend of the previous period. During the year, the Group raised £2.52 million(net of expenses) as part of its flotation on AIM. At the same time as raisingnew equity capital, the Group converted outstanding Convertible Loan Notes into2,011,311 Ordinary Shares with a market value on flotation of £2,413,573. Cash in-flow from operations during the period amounted to £653,291 comparedwith a cash out-flow of £183,683 in the previous year. As at 31 December 2006,the Group held £141,886 in its bank accounts and had asset related borrowings of£211,940. ACTIVITIES The increase in turnover reflects gate fee and tonnage increases at the WhartonPlant and, most significantly, the start of operations at the Suffolk Plant.During the year the Group brought forward the expansion of the Suffolk Plantalthough the necessary construction activity caused some disruption toproduction during the later months of 2006, as already reported in a previousstatement. Wharton (Herefordshire) Plant The Wharton Plant continues to process waste material from the food processingsector and mixed garden and kitchen waste from Bioganix's contract with SouthShropshire District Council. During the year, the DEFRA New TechnologiesDemonstrator Programme commenced and the Wharton composting facility is nowdedicated to this activity, which is expected to be completed by early 2008.The results achieved so far are most encouraging and some of the lessonslearned, as a result of the research activity, have already been incorporatedinto the Suffolk Plant and the designs for the proposed Sharpness plant. Suffolk (Parham) Plant In the first half of the year, the initial build programme was completed and inthe latter part of the year, the Suffolk Plant was extended so that it now hasan operational capability of 35,000 tonnes per annum. During the eight monthsof its operation in 2006 the plant was profitable. In early 2007, (aspreviously reported on 1 February 2007) the Directors became aware of somemanufacturing issues with two of the composting vessels. As a result, aprogramme of upgrade work was undertaken during February and March 2007. Thiswork is now complete and the Directors are entirely satisfied with the results. A number of improvements have been made to the Suffolk Plant since operationscommenced. In particular the Directors consider that significant furtherprogress in the understanding and management of odour control has been made.Nevertheless, odour management remains an issue and the Group continues to workwith its regulator to explore, and where appropriate implement, both structuraland operational improvements. Volumes of waste material being processed at the Suffolk Plant are increasingand are in line with management's expectations. Compost sales and marketing The Directors are pleased to report that during the year, the compost producedby both Bioganix plants was certified as being suitable for use in organicfarming systems regulated by the Organic Farmers' and Growers' Organisation.The Directors consider this to be a significant achievement, which will helpwith the marketing of Bioganix Compost. In addition, the Group has licensedBioganix Compost produced at the Wharton Plant as an agricultural fertiliserunder the Fertiliser Industry Assurance Scheme. The Directors are nowproceeding to license the Suffolk plant's output under the same scheme. TheDirectors believe that the primary markets for Bioganix Compost are agricultureand horticulture and, therefore, research and product development work has beenfocussed on the needs of customers in these markets. The Group is also pursuingcertification under the Compost Association's PAS 100 Standard. Sharpness (Gloucestershire) plant Throughout the year, the Group expended significant effort in acquiring PlanningPermission for a Bioganix in-vessel composting plant in premises at SharpnessDocks in Gloucestershire. The Directors are pleased to report that PlanningPermission was granted in January 2007. Bioganix Composting Limited completed a25 year lease with British Waterways Board on 13 June 2007. The lease providesBritish Waterways Board with the ability to terminate the lease on the tenthanniversary of the date of the lease and every anniversary thereafter, uponservice of six months' notice. However, in the event that this right isexercised between years 10 and 15, a reducing payment will be made by theBritish Waterways Board to Bioganix, the amount of which being dependent on thedate of termination. Starting in 2007, the Directors plan to install in-vesselcomposting equipment with a maximum capacity of 48,000 tonnes per year. It isanticipated that composting activities will begin in late 2007 or early 2008. The funding required for the construction and development of the Sharpness plantas a build, own and operate ('BOO') plant is expected to be met through acombination of bank debt, a government grant and from the proceeds of aconditional placing of new ordinary shares announced today. The Placing isconditional upon shareholders' approval being obtained at an ExtraordinaryGeneral Meeting. OUTLOOK Bioganix has now been in existence since 2001 and the Group has been processingwaste material into compost fertiliser continuously over the past five years.During that time Bioganix has supplied approximately 75,000 tonnes of compostfertiliser to the agricultural and horticultural sectors as well as other nichemarkets. Both of the Group's composting plants are operating in line withmanagement's expectations and the Group's current annualised waste processingactivity amounts to approximately 45,000 tonnes of production per annum. TheDirectors are pleased with the significant growth in activity that has takenplace over the last twelve months. The current year's performance will be significantly second half weighted, dueto the impact of the modifications and operational downtime experienced at theSuffolk Plant in the first half. At the operating level (excluding the cost ofmodifications to the vessels which are expected to amount to approximately£250,000, but after recognising the associated operational downtime which theDirectors estimate has reduced profits by approximately £200,000) the SuffolkPlant is expected to break even this year. The performance of the Wharton Plantis expected to be broadly the same year-on-year. The Directors' ongoing ambition is to expand the size and scope of the Group'sactivities. During 2007, much of the Group's focus will be on building the newSharpness facility. Bioganix will continue to seek out commercial opportunitiesfor waste processing throughout the UK and, to that end, are actively pursuing anumber of Local Authority tenders and other commercial opportunities. TheDirectors are encouraged by the latest rise in Landfill Tax and believe thatthis will have a positive effect on gate fees for the types of waste materialthat Bioganix processes. The Group will also continue to investigate opportunities to develop the marketfor Bioganix compost fertiliser, especially in the agricultural andhorticultural sectors as well as other ancillary markets. For example, Bioganixhas recently signed an agreement with IEG Technologies UK Limited, wherebyresearch work will be undertaken at Cranfield University into the possibilitiesof using Bioganix Compost combined with other materials to treat contaminatedsoils. In summary, the Directors are much encouraged by the Company's progress to dateand are looking forward to a further period of successful growth for Bioganix. Andrew Walker Chairman - Bioganix plc Profit and Loss Account For the year ended 31 December 2006 2006 2005 £ £ Group turnover 1,600,626 696,735 Cost of sales (1,016,293) (294,490) Gross profit 584,333 402,245 Distribution costs (196,925) (84,838)Share based payments (24,291) -Administrative expenses (852,504) (305,459)Other operating income 426,200 - Operating (loss)/profit (63,187) 11,948 Interest receivable 21,298 9,326Interest payable and similar charges (21,692) (14,338) (Loss)/profit on ordinary activities before taxation (63,581) 6,936 Taxation 24,038 83,798 (Loss)/profit for the financial year (39,543) 90,734 (Loss)/Earnings per share (0.92p) 824.85p Diluted (Loss)/Earnings per share (0.86p) 824.85p No separate Statement of Total Recognised Gains and Losses has been presented asall such gains and losses have been dealt with in the Profit and Loss Account. Balance Sheet For 31 December 2006 2006 2005 £ £ Fixed assetsIntangible assets 71,515 -Tangible assets 5,357,306 1,651,163 5,428,821 1,651,163Current assetsStocks 32,213 90,205Debtors 373,759 295,560Cash at bank 141,886 491,794 547,858 877,559CreditorsAmounts falling due within one year (593,048) (3,052,984) Net current liabilities (45,190) (2,175,425) Total assets less current liabilities 5,383,631 (524,262) CreditorsAmounts falling due after more than one year (915,641) (211,940) 4,467,990 (736,202) Capital and reservesCalled up equity share capital 645,834 11Share premium account 4,573,621 -Other reserve 24,291 -Profit and loss account (775,756) (736,213) Shareholders funds/(deficit) 4,467,990 (736,202) Cashflow Statement For 31 December 2006 2006 2005 £ £ Net cash flow from operating activities 653,291 (183,683) Returns on investment and servicing of financeInterest received 21,298 9,326Interest paid (5,005) (1,837)Loan interest (16,687) (12,501)Capital repayments (100,039) - Net cash outflow from returns on investmentsand servicing of finance (100,433) (5,012) Taxation 83,883 - Capital expenditure and financial investmentPayments to acquire tangible fixed assets (4,181,411) (1,480,130)Investment in intangible fixed assets (71,515) - Net cash outflow for capital expenditure andfinancial investment (4,252,926) (1,480,130) Cash outflow before financing (3,616,185) (1,668,825) FinancingIssue of ordinary share capital 6,263,573 -Expenses paid in connection with share issues (532,056) -New capital receipt - SCC 1,000,000 -Increase in loan to group undertaking - 16,839New bank loan - 278,082Repayment of director loan - (20,000)Repayment of bank loans (111,142) -Repayment of group undertakings (1,081,620) -Loan notes (1,760,406) 1,760,406Interest on loan notes (512,072) - Net cashflow from financing 3,266,277 2,035,327 (Decrease)/increase in cash in the year (349,908) 366,502 Notes: 1. This preliminary announcement does not consist of a full set ofstatutory accounts for the year ended 31 December 2006, within the meaning ofsection 240 of Companies Act 1985. 2. Earnings per share Including discontinuing operations The calculation of the basic and diluted earnings per share isbased on the following data 2006 2005 £ £EarningsEarnings for the purposes of basic earnings per (39,543) 90,734share (net profit for the year attributable to equityholders of the parent Earnings for the purposes of diluted earnings per (39,543) 90,734share 2006 2005 £ £ Number of sharesWeighted average number of ordinary shares for 4,309,223 11,000the purposes of basic earnings per shareEffect of dilutive potential ordinary shares:-Share options 315,123 -Weighted average number of ordinary shares for 4,624,346 11,000the purposes of diluted earnings per share 2006 2005 £ £ Basic (0.92p) 824.85p Diluted (0.86p) 824.85p 3. The full statutory accounts, upon which the auditors haveexpressed an unqualified opinion, will be filed with the Registrar of Companiesbefore 30 June 2007. 4. The annual report and accounts will be posted to shareholders by30 June 2007 and will be available upon application (free of charge) from theCompany's registered office at Wharton Court, Leominster, Herefordshire, HR6 0NXor on the Company's website www.bioganix.co.uk This information is provided by RNS The company news service from the London Stock Exchange