TIDMMST
RNS Number : 8216R
Mid-States PLC
10 November 2011
10 November 2011
MID-STATES PLC (the "Company")
FINAL RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2011
Mid-States PLC, a leading environmental technology group, is
pleased to announce its unaudited results for the twelve months
ended 30 June 2011.
Highlights
-- Raised GBP1.7 million (net of expenses) through a Placing,
subject to shareholder approval, to fund the:
o launch of new product range
o entry to new sectors and territories
o continued development of miniaturised AD
-- Revenues of GBP0.4 million (2010: GBP0.3 million) recording a
loss before tax of GBP2.5 million (2010: GBP2.3 million)
-- Substantially improved new product range
-- Rebranding the business under one more internationally recognisable brand "Aerte"
-- Proposed Chinese distribution partner participant in current Placing
-- Manufacture of new product range outsourced
Javier Segura, Managing Director of Mid-States PLC, commented:
"The response to the current Placing and the entry of significant
new shareholders is encouraging. In particular, we are delighted to
welcome our new manufacturing partner and proposed distributor for
China. We are focused on releasing the first run of the new AD
range and completing contract discussions with new distribution
partners."
For further information:
Mid-States PLC Tel: +44 (0) 20 7603 1515
Andrew Tonks, Finance Director
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7459 3600
Andrew Godber
Cardew Group Tel: +44 (0) 20 7930 0777
Tim Robertson / Georgina Hall
Chairman and Managing Director's Statement
Introduction
Mid-States PLC specialises in air disinfection technology and
products, which are sold through Mid-States' subsidiary company
Aerte (formerly named Inov8 Science). The AD products disinfect the
air and surfaces of bacteria and viruses, eliminating airborne
infections in enclosed spaces using hydroxyl radicals.
During the year ended 30 June 2011, the Company continued to
focus on, and invest in, developing its flagship air disinfection
product, "the AD", through expanding the network of country
specific distributors with whom the Company works, and by producing
the next generation of ADs to meet the requirements of different
markets and customers. The numbers of distributors and territories
continued to grow and the Company established a distribution
presence in 37 countries. Since the year end, the Company has
raised GBP1.7 million (net of expenses) through a Placing subject
to shareholder approval on 15 November. The new funds will support
the sale of the new range of ADs and further product
development.
Product development
Until now, the Company has had a single version of its AD
product for all markets. In response to customer requirements, the
portfolio now includes two new models of the AD, based on the same
science and technology. One, the "AD 2.0", is specifically designed
for commercial and professional use. The other, "Klean", is
designed for small commercial and domestic use. A miniaturised AD
product is also in the process of being finalised.
The new products have already attracted significant attention
from customers as they achieve the same effective results but are
now:
-- substantially cheaper and smaller than the existing AD;
-- wholly redesigned with both significant practical and aesthetic improvements; and
-- offering the choice of two consumable cartridges with the
introduction of H(2) O(2) as an alternative to d-limonene to
produce the key hydroxyl radicals.
Strategy
The new AD 2.0 and Klean products are launching this month.
Manufacturing is being outsourced as part of the process to improve
functionality whilst substantially reducing the prices at which the
Group is able to sell its products. The Group's UK manufacturing
and warehouse facility has now closed.
The Company believes that the new products will expand the
potential marketplace and accelerate its ability to sell into new
markets. The combination of the functionality and design of the new
products and their price points compared to the existing product is
expected to accelerate take up rates and sales volumes. To support
this objective, the Company will focus on bulk device orders and
increasing sales of consumable cartridges.
To reflect these developments, the Company's new products will
be sold under a new and more internationally recognisable brand
entitled "Aerte". Pursuant to the authorisation under the Company's
Articles of Association, the Board intends to change the name of
the Company from Mid-States PLC to Aerte Group PLC on 15 November
2011.
The Company raised GBP1.7 million (net of expenses) through a
share placing to be approved at a general meeting on 15 November
2011. The funds raised from the Placing will be used for the
Company's transition to, and the commercial launch of, the new
products. They will also assist the Company to enter new market
sectors and territories in which it intends to seek significant
distributors with the aim of achieving substantial increases in
device sales and, subsequently, consumable cartridge sales.
The successful engagement of new distributors and entry into new
markets will require continued investment by the Group in sales and
marketing, product development and working capital.
Investment will also be continued to finalise the miniaturised
AD product and complete its commercialisation prior to its launch
into the retail market with a suitable commercial partner.
Results for the Financial Year Ended 30 June 2011
The Company received orders totalling 3,078 ADs for the year
ended 30 June 2011, twice the number of orders reported in the
previous year (2010: 1,564 ADs).
Revenues for the year ended 30 June 2011 are GBP425,000 (2010:
GBP311,000), reflecting the increasing demand for the Company's
products as the number of devices despatched increased from 1,080
to 1,760 ADs.
The loss for the year after tax was GBP2.5 million (2010: GBP2.3
million).
At 30 June 2011 the cash at bank was GBP1.3 million (2010:
GBP3.8 million), and shareholders' funds were GBP2.8 million (2009:
GBP5.2 million).
The Directors do not recommend payment of a dividend for the
year ended 30 June 2011 (2010: GBPnil). The Financial Review
provides further details of the results for the year.
Current trading and prospects
The Company recently announced that it has agreed the principal
terms of a proposed distribution agreement with a Chinese company
operating in the high technology sector and a member of a group of
companies with combined annual sales of over GBP900 million. This
includes minimum annual sales targets for the new product range
with volumes of 75,000 devices in the first year, beginning from 1
February 2012.
The Company is also leveraging its existing sales and
distribution network. Discussions have commenced in other
territories with the aim of ensuring that the Company secures a
suitable distributor for the new products. In 2012, the Company
also intends to target new markets such as North and South
America.
It is likely that sales from the new products will not commence
in earnest before the middle of the third quarter of the financial
year to 30 June 2012 once the distributors have been able to launch
the new products and secure sales in their territories.
Nevertheless, once the new products are fully launched, the Company
expects sales volumes to be significantly greater than the sales
volume for the existing AD device as indicated by the proposed
sales volumes in China.
Sales of the existing AD have declined whilst the market awaits
the launch of the new products and the Company has focussed on
delivering the orders outstanding at 30 June 2011 and eliminating
stocks.
The development of the miniaturised AD for use in the domestic
home is progressing well and this work has been critical to the
development of the new AD 2.0 and Klean products being launched.
The Company continues to hold discussions with an industry leader
as a potential commercial partner for this miniaturised AD
product.
Commercial interest in the Company's products is building
significantly and the introduction of the additional product
(Klean) has increased the markets available and the overall size of
the opportunity.
John Bateson, Chairman
Javier Segura, Managing Director
10 November, 2011
Financial Review
The following review explains the financial performance for the
year ended 30 June 2011.
Revenue
Revenue for the year totalled GBP425,000 (2010: GBP311,000) and
this was all attributable to the Air Disinfection business.
Operating loss
The operating loss for continuing operations before tax was
GBP2.7 million (2010: GBP2.4 million loss). Operating costs for
2011 included amortisation of intangible assets GBP118,000 (2010:
GBP118,000). The overall performance in the year reflects the
continued investment in establishing the AD in new markets.
Loss for the year
The loss for the year after tax was GBP2.5 million (2010: GBP2.3
million loss).
Taxation
As a result of brought forward losses and the operating loss in
the year the Group's tax charge for 2011 was GBPnil (2010: GBPnil),
however there is a deferred tax credit of GBP34,000 for 2011 (2010:
GBP34,000 credit). R&D tax credit was received during the year
ended 30 June 2011 of GBP165,000 (2010: GBPnil).
Cash flow and net cash
The total cash outflow for the year ended 30 June 2011 was
GBP2.6 million (2010: GBP1.6 million inflow) and included in this
figure was the proceeds from a share issue of nil (2010: GBP3.9
million). The net cash used in operating activities for the year
was GBP2.6 million (2010: GBP2.2 million).
The Group's cash balances were GBP1.3 million at 30 June 2011
(2010: GBP3.8 million).
Key performance indicators
The Group considers the key performance indicators as the growth
of revenues for AD devices and consumables, and the net current
assets and cash balances for the Air Disinfection business.
2011 2010
GBP'000 GBP'000
-------------------------- -------- --------
Air Disinfection Revenue 425 311
Net current assets 1,184 3,523
Cash at bank and in hand 1,254 3,818
Consolidated statement of comprehensive income
Year ended 30 June 2011
Year to Year to
30 June 30 June
2011 2010
Note GBP'000 GBP'000
----------------------------------- ----- --------- ---------
Continuing operations
Revenue 3 425 311
Cost of sales (304) (299)
----------------------------------- ----- --------- ---------
Gross profit 121 12
Distribution expenses (14) (11)
Administrative expenses (2,844) (2,391)
Results from operating activities (2,737) (2,390)
Finance income 8 25
Net finance income 8 25
Loss before income tax (2,729) (2,365)
Income tax credit 5 199 34
Loss from continuing operations (2,530) (2,331)
----------------------------------- ----- --------- ---------
Loss for the period (2,530) (2,331)
----------------------------------- ----- --------- ---------
Total comprehensive expense
for the period (2,530) (2,331)
----------------------------------- ----- --------- ---------
Basic and diluted
Loss per share 4 (0.97)p (1.88)p
Consolidated statement of financial position
At 30 June 2011
30 June 30 June
2011 2010
Note GBP'000 GBP'000
----------------------------------- --- ----- --------- ---------
Assets
Property, plant and equipment 30 123
Goodwill 1,115 1,115
Other intangible assets 542 660
---------------------------------------- ----- --------- ---------
Total non-current assets 1,687 1,898
Inventories 6 145 160
Trade and other receivables 180
7 56 69
Other current assets 8 113 97
Cash and cash equivalents 1,254 3,818
---------------------------------------- ----- --------- ---------
Total current assets 1,692 4,144
Total assets 3,379 6,042
---------------------------------------- ----- --------- ---------
Equity
Share capital 11 2,609 2,609
Share premium 6,955 6,955
Share based payments reserve 97 83
Capital redemption reserve 253 253
Merger reserve 3,250 3,250
Retained earnings (10,440) (7,910)
---------------------------------------- ----- --------- ---------
Total equity attributable to equity
holders of the Company 2,724 5,240
---------------------------------------- ----- --------- ---------
Liabilities
Deferred tax liabilities 147 181
Total non-current liabilities 147 181
Trade and other payables 9 170 211
Other creditors and accruals 9 221 212
Deferred income 9 34 9
Short-term provisions 10 83 189
---------------------------------------- ----- --------- ---------
Total current liabilities 508 621
---------------------------------------- ----- --------- ---------
Total liabilities 655 802
---------------------------------------- ----- --------- ---------
Total equity and liabilities 3,379 6,042
---------------------------------------- ----- --------- ---------
Consolidated statement of changes in equity
At 30 June 2011
Share
based Capital
Share Share payment redemption Merger Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- -------- -------- ----------- -------- --------- -------
1 July 2010 2,609 6,955 83 253 3,250 (7,910) 5,240
Share based payment
transactions - - 14 - - - 14
------------------------- -------- -------- -------- ----------- -------- --------- -------
Transactions with owners - - 14 - - - 14
Loss for the year and
total comprehensive
loss - - - - - (2,530) (2,530)
30 June 2011 2,609 6,955 97 253 3,250 (10,440) 2,724
1 July 2009 1,161 4,543 67 253 3,250 (5,579) 3,695
Issue of new shares 1,448 2,412 - - - - 3,860
Share-based payment
transactions - - 16 - - - 16
Transactions with owners 1,448 2,412 16 - - - 3,876
Loss for the year and
total comprehensive
loss - - - - - (2,331) (2,331)
------------------------- -------- -------- -------- ----------- -------- --------- -------
30 June 2010 2,609 6,955 83 253 3,250 (7,910) 5,240
------------------------- -------- -------- -------- ----------- -------- --------- -------
Consolidated statement of cash flows
Year ended 30 June 2011
Year to Year to
30 June 30 June
2011 2010
GBP'000 GBP'000
------------------------------------------ --------- ---------
Cash flows from operating activities
Loss for the period (2,530) (2,331)
Adjustments for:
Depreciation 62 80
Amortisation of intangible assets 118 118
Share based payments 14 16
Taxation (199) -
Loss on disposal of fixed assets 35 -
(2,500) (2,117)
Change in inventories 15 120
Change in trade and other receivables (127) (100)
Change in trade and other payables (32) (182)
Change in provisions (106) 105
Change in deferred income 25 (7)
------------------------------------------ --------- ---------
(2,725) (2,181)
Interest income (8) (25)
Income tax received 165 -
------------------------------------------ --------- ---------
Net cash used in operating activities (2,568) (2,206)
Cash flows from investing activities
Interest received 8 25
Purchase of property, plant
and equipment (4) (91)
------------------------------------------ --------- ---------
Net cash (used in)/from investing
activities 4 (66)
------------------------------------------ --------- ---------
Cash flows from financing activities
Proceeds from issue of share
capital - 3,860
Net cash from financing activities - 3,860
------------------------------------------ --------- ---------
Net (decrease)/increase in cash
and cash equivalents (2,564) 1,588
Cash and cash equivalents at
beginning of period 3,818 2,230
Cash and cash equivalents at
end of the period 1,254 3,818
------------------------------------------ --------- ---------
Notes to the consolidated financialstatements
For the year ended 30 June 2011
1. NATURE OF OPERATIONS AND GENERAL INFORMATION
Mid-States PLC and subsidiaries' ('the Group') principal
activities are in the area of environmental technology, focusing in
particular on cleaner air through its innovative air disinfection
products.
Mid-States PLC consolidated financial statements are presented
in Pounds Sterling (GBP), which is also the functional currency of
the parent company.
2. ACCOUNTING POLICIES
Basis of preparation
The financial information contained within this preliminary
report has been prepared using accounting policies consistent with
International Financial Reporting Standards (IFRS) as adopted by
the EU and applying at 30 June 2011. The information in this
preliminary statement has been extracted from the unaudited
financial statements for the year ended 30 June 2011 and as such,
does not contain all the information required to be disclosed in
the financial statements prepared in accordance with the
International Financial Reporting Standards.
The figures for the year ended 30 June 2011 and 2010 do not
constitute statutory accounts within the meaning of section 434(3)
of the Companies Act 2006.
3. SEGMENTAL ANALYSIS
Mid-States PLC is an environmental technology group. The Group
has one operating segment under IFRS 8 which is air
disinfection.
Management information is provided to the chief operating
decision maker on a consolidated basis prior to any adjustments for
Share Based payment charges GBP14,000 (2010: GBP16,300).
Revenue and non-current assets originate in the United
Kingdom.
The geographical analysis of total revenue by destination is as
follows:
30 June 30 June 2010
2011 GBP'000 GBP'000
----------------------- -------------- ---------------
United Kingdom 22 33
Spain 71 120
India 143 10
Rest of World 189 148
Continuing operations 425 311
----------------------- -------------- ---------------
Two distributors represent 50% (2010: 60%) of total revenue. We
expect reliance on these two distributors to reduce as sales are
made to new distributors.
4. LOSS PER SHARE
The calculation of the basic and diluted earnings per share is
based on the following information:
Loss 30 June 2011 30 June 2010
GBP'000 GBP'000
----------------- -------- -------- --------- ------------------------- -----------------
Loss for the purpose of basic and diluted earnings
per share being the net loss
attributable to equity holders of the parent: (2,530) (2,331)
---------------------------------------------------------------- --------- ------ ---------
Number of shares 30 June 2011 30 June 2010
------------------ ------- ------- --------- --------------------------- --------------------
Weighted average number of ordinary shares for
the purpose of basic and diluted loss per share 260,903,839 123,621,062
-------------------------------------------------------------- ------------ ------ ------------
Loss per share 30 June 2011 30 June 2010
GBP'000 GBP'000
----------------------------------------------- ------------------------ --------------------
Basic loss per share (0.97)p (1.88)p
Diluted loss per share (0.97)p (1.88)p
-------------------------------------------------------------- ------------ ------ ------------
5. TAX ON LOSS ON ORDINARY ACTIVITIES
30 June 2011 30 June 2010
GBP'000 GBP'000
-------------- ------- ------- --------------- ----------------- ----------------
Current tax - adjustment for R&D tax credits (165) -
receivable in respect of prior periods
Deferred tax (34) (34)
Tax on loss on ordinary activities (199) (34)
----------------------------------------------------------- ------- ------ --------
The differences between the total current tax charge shown above
and the amount calculated by applying the standard rate of UK
corporation tax to the profit before tax is as follows:
Loss on ordinary activities before tax on continuing
operations (2,530) (2,365)
Tax on loss on ordinary activities at 27.5%
(2010: 28%) (696) (662)
Factors affecting charge for the year:
- Non deductible expenses 15 15
- Deferred tax unprovided 647 613
- adjustments in respect of prior periods (165) -
------------------------------------------------------ -------- --------
Tax charge in the year (199) (34)
------------------------------------------------------ -------- --------
The Group has tax losses arising in the UK of GBP8.4 million
(2010: GBP6.6 million) that are available indefinitely for offset
against future taxable profits in those companies in which the
losses arose.
6. INVENTORIES
2011 2010
GBP'000 GBP'000
-------------- ------- ------- ----------- --------------------- ---------------
Raw Materials 75 126
Provision for obsolete / slow moving stock - (69)
Finished goods 70 103
------------------------------------------------------------ ------ ------ -------
145 160
------------------------------------------------------------ ------ ------ -------
7. TRADE RECEIVABLES
2011 2010
GBP'000 GBP'000
----------------- -------- -------- ------------- --------------------- ----------------
Current:
Trade receivables 230 70
Less provision for impairment of trade receivables (50) (1)
----------------------------------------------------------------- -------- ------ -----
Net trade receivables 180 69
----------------------------------------------------------------- -------- ------ -----
There is no material difference between the carrying amount and
the fair value of the trade receivables.
The carrying amounts of the Group's trade and other receivables
are denominated in the following currencies.
2011 2010
GBP'000 GBP'000
-------------- ------- ------- ----------- --------------------- --------------
Sterling 99 30
Euros 81 39
------------------------------------------------------------ ------ ------ ------
180 69
------------------------------------------------------------ ------ ------ ------
8. OTHER CURRENT ASSETS
2011 2010
GBP'000 GBP'000
-------------- ------- ------- ----------- --------------------- --------------
Value added tax recoverable 14 38
Prepayments, accrued income and other current
assets 99 59
------------------------------------------------------------ ------ ------ ------
113 97
------------------------------------------------------------ ------ ------ ------
9. TRADE PAYABLES AND OTHER CURRENT LIABILITIES
2011 2010
GBP'000 GBP'000
-------------- ------- ------- ------------- --------------------- -------------
Trade payables 170 211
Social security and other taxes 44 47
Pension creditors 4 3
Other payables and accruals 173 162
Deferred income 34 9
-------------------------------------------------------------- ------ ------ -----
425 432
-------------------------------------------------------------- ------ ------ -----
10. PROVISIONS
Warranty provision
2011 2010
GBP'000 GBP'000
------------------------------- --------- ---------
At 1 July 2010 189 84
Provided for during the year 30 105
Utilised in the year (136) -
------------------------------- --------- ---------
At 30 June 2011 83 189
------------------------------- --------- ---------
Analysis of total provision
2011 2010
GBP'000 GBP'000
------------------- ------- ------- --------- ------------------- --------------
Current 83 189
--------------------------------------------------------------- ---- ------ ------
At 30 June 2011 83 189
--------------------------------------------------------------- ---- ------ ------
The AD is still a relatively new product and as a consequence
the warranty provision assumes warranty costs and distribution
expenses will be incurred within the next year. However, this is
reviewed on a regular basis as more post sales data is
obtained.
11. CALLED UP SHARE CAPITAL
----------------------------- ------------------------------
Number of Allotted called
Ordinary up and fully
shares of paid
GBP0.01 GBP'000
each
----------------------------- ------------ ----------------
At 1 July 2010 260,903,839 2,609
----------------------------- ------------ ----------------
At 30 June 2011 260,903,839 2,609
----------------------------- ------------ ----------------
12. POST BALANCE SHEET EVENTS
On 25 October 2011 the Group announced that, subject to
Shareholder approval, it had raised GBP1,834,036 before expenses to
fund the Company's on-going development and roll-out of new
products, via the proposed issue of 122,269,051 new Ordinary Shares
at a price of 1.50 pence per share to new and existing
investors.
The Placing is subject to approval by shareholders at a general
meeting on 15 November 2011.
Pursuant to the authorisation under the Company's Articles of
Association, the Board intends to change the name of the company
from Mid-States PLC to Aerte Group PLC on 15 November 2011.
13. ANNUAL REPORT
The financial information set out in the announcement does not
constitute the company's statutory accounts for the years ended 30
June 2011 or 2010. The financial information for the year ended 30
June 2010 is derived from the statutory accounts for that year
which have been delivered to the Registrar of Companies. The
auditors reported on those accounts. Their report was unqualified
and did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006. The statutory accounts for the year ended 30
June 2011 have been finalised on the basis of the financial
information presented by the directors in this preliminary
announcement. The auditors have yet to report on the statutory
accounts for the year ended 30 June 2011.
Once approved, copies of the Annual Report and accounts for the
year ended 30 June 2011 will be posted to shareholders and will be
available on the Company's website (www.aertegroup.com).
This information is provided by RNS. The company news service
from the London Stock Exchange
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ZMMGMNLFGMZM
Mid-states (LSE:MST)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Mid-states (LSE:MST)
Historical Stock Chart
Von Jun 2023 bis Jun 2024
