TIDMEVC 
 
RNS Number : 8729N 
Evolutec Group PLC 
25 February 2009 
 

 
 
Evolutec Group plc 
("Evolutec" or the "Company") 
 
 
Preliminary Results for the year ended 31 December 2008 
 
 
Evolutec Group plc (AIM: EVC), announces Preliminary Results for the year ended 
31 December 2008. 
 
 
Highlights 
 
 
  *  Proposed acquisition of Nanoco Tech plc 
 
 
 
  *  The profit for the year was GBP0.10 million before taxation (2007, loss GBP1.93 
  million) 
 
 
 
  *  Total interest payments for the year were GBP301k (2007,GBP375k) 
 
 
 
  *  At the end of the financial year the company consolidated its cash deposits to a 
  single deposit at HSBC Corporation. This, together with the general reduction in 
  interest rates, is expected to result in a significant reduction in future 
  interest income. 
 
 
 
  *  Net cash and cash equivalents on 31 December were GBP6.03 million (2007, GBP5.80 
  million) 
 
 
 
  *  Based on 25.9 million issued ordinary shares, Evolutec had a cash value of 23.3p 
  per share (2007, 23p per share) at the year end 
 
 
 
 
 
 
 
 
 
 
 
Enquiries: 
Evolutec Group plc07771 525 875 
David Bloxham 
Zeus Capital Limited 
                                                         0161 831 1512 
Richard Hughes 
 
 
 
 
 
 
 
 
CHAIRMAN'S REVIEW 
 
 
Throughout 2008, Evolutec has operated as an investing company under the AIM 
(Alternative Investment Market) Rules pending any further transaction. As noted 
in the previous Annual Report, the company has out-licensed all its intellectual 
property in the biotechnology field. 
 
 
The principal assets of Evolutec have been its listing on the AIM market of the 
London Stock Exchange and its cash and cash equivalent reserve. The main 
activities of the directors throughout 2008 have been focussed on preserving 
these two assets while seeking a single company investment opportunity. There 
were no changes in the Board of Directors during the course of the year and the 
company complied with its regulatory obligations to maintain its listing status. 
In December, the company announced that it had appointed Zeus Capital Limited as 
its Nominated Advisor and Broker in anticipation of a reverse transaction. 
 
 
Operating costs for 2008 were significantly reduced to GBP205k (2007; GBP2,369k) 
and mostly comprised directors' compensation and professional fees. Interest 
income of GBP301k (2007; GBP375k) was sufficient to cover these costs and 
resulted in a small profit before taxation of GBP96k (2007; GBP1,925k loss). The 
group ended the year with cash and cash equivalents of GBP6,033k (2007; 
GBP5,797k) and total assets of GBP6,118k (2007; GBP5,987k). 
 
 
Given the financial turbulence during the second half of 2008, the company 
decided to change its investment policy at the end of the year. Previously, the 
cash deposit had been split between at least two banks, each with a minimum 
credit rating of F1/A. The objective was to derive maximum interest consistent 
with flexibility to undertake ongoing activity whilst safeguarding the asset. 
Under the conditions prevailing at the end of 2008, the Board decided that 
safeguarding the asset was its sole concern and as a consequence it was decided 
to invest the entire deposit with HSBC Corporation, the UK's largest bank by 
market capitalisation. As a consequence of this change interest income fell 
sharply in the last few months of the year. 
 
 
It was announced earlier today that the board of Evolutec had reached agreement 
with Nanoco Tech Plc ("Nanoco") on the terms of a recommended share acquisition 
by Evolutec of the entire issued and to be issued share capital of Nanoco by 
means of a court approved scheme of arrangement. 
 
 
Nanoco is a leading nanotechnology company involved in the development and 
manufacture of fluorescent semiconducting materials called quantum dots. Nanoco 
was founded in 2001 in order to progress the development of quantum dot 
technology that was previously developed at the University of Manchester and 
Imperial College, London. 
 
 
Quantum dots are a platform technology with uses in a wide range of applications 
from life sciences through to optoelectronics dominated by solid state lighting, 
photovoltaics, and next generation displays. Quantum dot based applications have 
the ability to potentially offer significant benefits in performance and energy 
savings compared to those materials currently used in these industry sectors. 
Given the interest in developing a low carbon economy, worldwide, there should 
be significant opportunities for Nanoco and the company has demonstrated this 
potential by establishing its first significant commercialisation collaboration 
with a major Japanese company. 
 
 
Further information on the proposed acquisition and action you are required to 
take is set out in an Admission Document which has been posted to all 
shareholders today. 
 
 
I would like to take this opportunity to thank the directors, investors and 
suppliers of the company for their support during the year. It has taken longer 
to find a suitable financial transaction than had been initially expected mostly 
due to averse market conditions. Nevertheless, it is hoped that the opportunity 
with Nanoco will provide a significant new start for the company. 
 
 
 
 
David P Bloxham 
Chairman 
25 February 2009 
 
 
 
 
Consolidated income statement 
For the year ended 31 December 2008 
 
 
+--------------------------------------+--------+--------+--------+----------+----------+ 
|                                               |                 |     Year |     Year | 
|                                               |                 |    ended |    ended | 
|                                               |                 |       31 |       31 | 
|                                               |                 | December | December | 
|                                               |                 |     2008 |     2007 | 
|                                               |                 |          |          | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Continuing operations                         |      Note       |   GBP000 |   GBP000 | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Revenue                                       |        2        |        - |       82 | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Cost of sales                                 |                 |        - |      (1) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Gross Profit                                  |                 |        - |       81 | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Selling and marketing costs                   |                 |        - |    (160) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Research and development expenditure          |                 |        - |  (1,050) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Administrative expenses                       |                 |    (205) |  (1,159) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Operating loss                                |                 |    (205) |  (2,288) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Finance income                                |        5        |      301 |      375 | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Finance costs                                 |        5        |        - |     (12) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Profit/(loss) before tax                      |                 |       96 |  (1,925) | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Taxation                                      |        6        |     (19) |      162 | 
+-----------------------------------------------+-----------------+----------+----------+ 
| Profit/(loss) for the period                  |                 |       77 |  (1,763) | 
+-----------------------------------------------+-----------------+----------+----------+ 
|                                      |                 |                   |          | 
+--------------------------------------+-----------------+-------------------+----------+ 
| Basic and diluted profit/(loss) per  |          7      |              0.3p |   (6.8)p | 
| ordinary share from continuing       |                 |                   |          | 
| activities                           |                 |                   |          | 
+--------------------------------------+--------+--------+--------+----------+----------+ 
 
 
 
 
 
 
 
 
Balance sheets 
As at 31 December 2008 
 
 
+-------------------------+------+----------+------------+------------+------------+ 
|                         |      |    Group |     Group  |    Company |   Company  | 
|                         |      |       31 |         31 |         31 |         31 | 
|                         |      | December |   December |   December |   December | 
|                         |      |     2008 |       2007 |       2008 |       2007 | 
|                         |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| ASSETS                  |Note  |   GBP000 |     GBP000 |     GBP000 |     GBP000 | 
+-------------------------+------+----------+------------+------------+------------+ 
| Non-current assets      |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Investments             |      |        - |          - |      5,791 |      5,791 | 
+-------------------------+------+----------+------------+------------+------------+ 
|                         |      |        - |          - |      5,791 |      5,791 | 
+-------------------------+------+----------+------------+------------+------------+ 
| Current assets          |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Research and            |      |        - |        162 |          - |          - | 
| development tax credits |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Trade and other         |      |       85 |         28 |          - |          - | 
| receivables             |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Cash and cash           |      |    6,033 |      5,797 |          - |          - | 
| equivalents             |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
|                         |      |    6,118 |      5,987 |          - |          - | 
+-------------------------+------+----------+------------+------------+------------+ 
| Total assets            |      |    6,118 |      5,987 |      5,791 |      5,791 | 
+-------------------------+------+----------+------------+------------+------------+ 
|                         |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| EQUITY                  |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Share capital           |  2   |   27,037 |     27,037 |     27,037 |     27,037 | 
+-------------------------+------+----------+------------+------------+------------+ 
| Other reserves          |  3   |    8,518 |      8,518 |      4,784 |      4,784 | 
+-------------------------+------+----------+------------+------------+------------+ 
| Retained deficit        |      | (29,525) |   (29,602) |   (26,030) |   (26,030) | 
+-------------------------+------+----------+------------+------------+------------+ 
| Equity shareholders'    |      |    6,030 |      5,953 |      5,791 |      5,791 | 
| funds                   |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
|                         |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| LIABILITIES             |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Current liabilities     |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Trade and other         |      |       88 |         34 |          - |          - | 
| payables                |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
| Total liabilities       |      |       88 |         34 |          - |          - | 
+-------------------------+------+----------+------------+------------+------------+ 
| Total equity and        |      |    6,118 |      5,987 |      5,791 |      5,791 | 
| liabilities             |      |          |            |            |            | 
+-------------------------+------+----------+------------+------------+------------+ 
 
 
 
 
 
 
 
 
 
 
Consolidated statements of changes in shareholders' equity 
 
 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |   Share |   Share |   Other  | Retained |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      | capital | Premium | reserves |  deficit |   Total | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Group                                |  GBP000 |  GBP000 |   GBP000 |   GBP000 |  GBP000 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Balance at 1 January 2007            |   2,595 |  24,442 |    9,083 | (27,839) |   8,281 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Net income recognised directly in    |         |         |          |          |         | 
| equity                               |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Loss for the year                    |       - |       - |        - |  (1,763) | (1,763) | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Total recognised income and expense  |       - |       - |        - |  (1,763) | (1,763) | 
| for the period                       |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Share-based payments credit          |       - |       - |    (565) |        - |   (565) | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Balance at 31 December 2007          |   2,595 |  24,442 |    8,518 | (29,602) |   5,953 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Net income recognised directly in    |         |         |          |          |         | 
| equity                               |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Profit for the year                  |       - |       - |        - |       77 |      77 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Total recognised income and expense  |       - |       - |        - |       77 |      77 | 
| for the period                       |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Balance at 31 December 2008          |   2,595 |  24,442 |    8,518 | (29,525) |   6,030 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Company                              |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Balance at 1 January 2007            |   2,595 |  24,442 |    5,349 | (25,386) |   7,000 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Net income recognised directly in    |         |         |          |          |         | 
| equity                               |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Impairment charge                    |       - |       - |        - |    (644) |   (644) | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Total recognised income and expense  |       - |       - |        - |    (644) |   (644) | 
| for the period                       |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Share-based payments credit          |       - |       - |    (565) |        - |   (565) | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Balance at 31 December 2007          |   2,595 |  24,442 |    4,784 | (26,030) |   5,791 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Net income recognised directly in    |       - |       - |        - |        - |       - | 
| equity                               |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Total recognised income and expense  |       - |       - |        - |        - |       - | 
| for the period                       |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
|                                      |         |         |          |          |         | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
| Balance at 31 December 2008          |   2,595 |  24,442 |    4,784 | (26,030) |   5,791 | 
+--------------------------------------+---------+---------+----------+----------+---------+ 
 
 
 
 
 
 
 
 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Cash                |          |  Group Year |                 Group |               Company |  Company Year | 
| flow                |          |    ended 31 |                  Year |                  Year |               | 
| statements          |          |    December |                 ended |                 ended |      ended 31 | 
| for the             |          |        2008 |                    31 |                    31 | December 2007 | 
| year ended          |          |             |              December |              December |               | 
| 31                  |          |             |                  2007 |                  2008 |               | 
| December            |          |             |                       |                       |               | 
| 2008                |          |             |                       |                       |               | 
|                     |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
|                     |          |      GBP000 |                GBP000 |                GBP000 |        GBP000 | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
|                     |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Cash                |          |             |                       |                       |               | 
| flows               |          |             |                       |                       |               | 
| from                |          |             |                       |                       |               | 
| operating           |          |             |                       |                       |               | 
| activities          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Profit/(loss)       |          |          77 |               (1,763) |                     - |         (644) | 
| for the             |          |             |                       |                       |               | 
| period              |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Taxation            |          |          19 |                 (162) |                     - |             - | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Depreciation        |          |           - |                   140 |                     - |             - | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Interest            |          |       (301) |                 (375) |                     - |             - | 
| received            |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Fair                |          |           - |                     - |                     - |           644 | 
| value               |          |             |                       |                       |               | 
| adjustment          |          |             |                       |                       |               | 
| on                  |          |             |                       |                       |               | 
| investment          |          |             |                       |                       |               | 
| in                  |          |             |                       |                       |               | 
| subsidiary          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Share               |          |           - |                 (565) |                     - |             - | 
| options             |          |             |                       |                       |               | 
| - value             |          |             |                       |                       |               | 
| of                  |          |             |                       |                       |               | 
| employee            |          |             |                       |                       |               | 
| services            |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| (Increase)/Decrease |          |        (57) |                   174 |                     - |             - | 
| in trade and other  |          |             |                       |                       |               | 
| receivables         |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Decrease/(increase) |          |          35 |               (1,354) |                     - |             - | 
| in trade and other  |          |             |                       |                       |               | 
| payables            |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Cash                |          |       (227) |               (3,905) |                     - |             - | 
| used by             |          |             |                       |                       |               | 
| operations          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Taxation            |          |         162 |                   645 |                     - |             - | 
| received            |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Net cash            |          |        (65) |               (3,260) |                     - |             - | 
| outflow             |          |             |                       |                       |               | 
| from                |          |             |                       |                       |               | 
| operating           |          |             |                       |                       |               | 
| activities          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
|                     |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Cash                |          |             |                       |                       |               | 
| flows               |          |             |                       |                       |               | 
| from                |          |             |                       |                       |               | 
| investing           |          |             |                       |                       |               | 
| activities          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Increase            |          |           - |                     - |                     - |       (3,147) | 
| in                  |          |             |                       |                       |               | 
| investment          |          |             |                       |                       |               | 
| in                  |          |             |                       |                       |               | 
| subsidiary          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Interest            |          |         301 |                   375 |                     - |             - | 
| received            |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
|                     |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Net cash            |          |         301 |                   375 |                     - |       (3,147) | 
| generated           |          |             |                       |                       |               | 
| from/(applied       |          |             |                       |                       |               | 
| to) investing       |          |             |                       |                       |               | 
| activities          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
|                     |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Net                 |          |         236 |               (2,885) |                     - |       (3,147) | 
| increase/(decrease) |          |             |                       |                       |               | 
| in cash and cash    |          |             |                       |                       |               | 
| equivalents         |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Cash and            |          |       5,797 |                 8,682 |                     - |         3,147 | 
| cash                |          |             |                       |                       |               | 
| equivalents         |          |             |                       |                       |               | 
| at the              |          |             |                       |                       |               | 
| start of            |          |             |                       |                       |               | 
| the period          |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
| Cash and            |          |       6,033 |                 5,797 |                     - |             - | 
| cash                |          |             |                       |                       |               | 
| equivalents         |          |             |                       |                       |               | 
| at the end          |          |             |                       |                       |               | 
| of the              |          |             |                       |                       |               | 
| period              |          |             |                       |                       |               | 
+---------------------+----------+-------------+-----------------------+-----------------------+---------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the financial statements 
for the year ended 31 December 2008 
 
 
1. Accounting policies and basis of preparation 
 
 
Following the cessation of its research and development-based pharmaceutical 
business, Evolutec has been classified as an investing company in the terms of 
the rules of the Alternative Investment Market of the London Stock Exchange 
(AIM). The Directors believe that the Group has sufficient funds available to 
continue for the foreseeable future; therefore the financial statements have 
been prepared on the going concern basis. 
 
 
The directors have identified a single investment opportunity and expect to 
conclude this process by 12 April 2009 (the anniversary of the 2008 AGM). Should 
a transaction not be completed by this time, the directors intend to consult 
with the members of the Company to obtain an extension of this deadline. The 
largest shareholder has indicated that it would support this approach and would 
not support any proposal to liquidate the company. 
 
 
Basis of preparation These financial statements have been prepared in accordance 
with International Financial Reporting Standards and IFRIC interpretations 
endorsed by the EU and with those parts of the Companies Act, 1985 applicable to 
companies reporting under IFRS. The financial statements have been prepared 
under the historical cost convention. 
 
 
New accounting standards At the date of authorisation of these financial 
statements, the following Standards and Interpretations which have not been 
applied in these financial statements were in issue but not yet effective: 
 
 
IAS 1 Presentation of Financial Statements (revised 2007) (effective 1 January 
2009) 
IAS 27 Consolidated and Separate Financial Statements (Revised 2008) (effective 
1 July 2009) 
Amendment to IFRS 2 Share-based Payment - Vesting Conditions and Cancellations 
(effective 1 January 2009) 
Improvements to IFRSs (effective 1 January 2009 other than certain amendments 
effective 1 July 2009) 
IFRS 3 Business Combinations (Revised 2008) (effective 1 July 2009) 
IFRS 8 Operating Segments (effective 1 January 2009) 
 
 
The directors anticipate that the adoption of these Standards and 
Interpretations in future periods will have no material impact on the financial 
statements of the Group in its current form. 
 
 
Company income statement In accordance with the provisions of Section 230 of the 
Companies Act 1985, no separate income statement has been presented for the 
Evolutec Group plc. The results for the Company are also presented under IFRS. 
 
 
Accounting policies The principal accounting policies adopted in the preparation 
of these financial statements are set out below. These policies have been 
consistently applied to all periods presented, unless otherwise stated. 
 
 
Investments are carried at cost less any provision for impairment. 
 
 
Basis of consolidation The consolidated financial statements of the Group 
include the accounts of Evolutec Group plc and all its subsidiary undertakings 
(together, the "Group"), made up to 31 December 2008. Inter-company transactions 
are eliminated on consolidation. 
 
 
The identifiable assets and liabilities of subsidiary undertakings accounted for 
under acquisition accounting principles are included in the consolidated balance 
sheet at their fair values at the date of acquisition. The results and cash 
flows of such subsidiaries are brought into the Group accounts only from the 
date of acquisition. 
 
 
The combination of Evolutec Group plc and Evolutec Limited in 2004 was accounted 
for under merger accounting principles. 
 
 
Revenue The Group generates revenue by licensing its technologies. The 
recognition of such revenue, including up front and milestone payments, is 
dependent on the terms of the related arrangement, having regard to the ongoing 
risks and rewards of the arrangement, and the existence of any performance or 
repayment obligations with any third party. 
 
 
Non-refundable access fees, options fees and milestone payments receivable for 
participation by a third party in development and commercialisation of a product 
development candidate are recognised when they become contractually binding, 
provided there are no related commitments of the Group. Where there are related 
commitments, revenue is recognised on a percentage-of-completion basis in line 
with the actual levels of expenditure incurred in fulfilling these commitments. 
All other licence income and contract research fees are recognised over the 
accounting period to which the relevant services relate. Revenues derived from 
grants received are recognised in line with the related expenditure. Royalty 
income is recognised in relation to sales to which the royalty relates. 
 
 
Operating leases Costs in respect of operating leases are charged to the income 
statement on a straight-line basis over the terms of the leases. 
 
 
Share-based payments The Group makes equity-settled share-based payments to its 
employees and Directors. Equity-settled share-based payments are measured at 
fair value at the date of grant and expensed on a straight-line basis over the 
vesting period of the award. At each balance sheet date, Evolutec revises its 
estimate of the number of options that are expected to become exercisable. 
 
 
The value of any shares or options granted is charged to the income statement 
over the period the shares vest, with a corresponding credit to reserves. When 
share options are exercised, the proceeds received, net of any transaction 
costs, are credited to share capital (nominal value) and share premium. 
 
 
The principal assumptions used to calculate the value of options issued are: 
Share price volatility         45% 
Risk free rate of return     4.5% 
Date of exercise     Normally assumed to be the first possible exercise date 
 
 
Employee benefits All employee benefit costs, notably holiday pay and 
contributions to personal defined contribution pension plans, are charged to the 
income statement on an accruals basis. The Group does not offer any other 
post-retirement benefits. 
 
 
 
 
Taxation Current tax, including UK corporation tax and research and development 
tax credits, is provided (or shown) at amounts expected to be paid (or 
recovered) using the tax rates or laws that have been enacted, or substantially 
enacted, by the balance sheet date. 
 
 
Credit is taken in the accounting period for research and development tax 
credits, which will be claimed from HM Revenue and Customs in respect of 
qualifying research and development costs incurred in the same accounting 
period. 
 
 
Deferred tax is recognised in respect of all temporary differences identified at 
the balance sheet date. Temporary differences are differences between the 
carrying amount of the Group's assets and liabilities and their tax base. 
 
 
A deferred tax asset is recognised only when, on the basis of all the available 
evidence, it can be regarded as probable that there will be suitable taxable 
profits, within the same jurisdiction, in the foreseeable future against which 
the deductible temporary difference can be utilised. 
 
 
Deferred tax is provided on temporary differences arising in subsidiaries, 
except where the timing of reversal of the temporary difference can be 
controlled and it is probable that the temporary difference will not reverse in 
the foreseeable future. 
 
 
Deferred tax is measured at the average tax rates that are expected to apply in 
the periods in which the asset is realised or liability settled, based on tax 
rates and laws that have been enacted or substantially enacted by the balance 
sheet date. Measurement of deferred tax liabilities and assets reflects the tax 
consequence expected to follow from the manner in which the asset or liability 
is recovered or settled. 
 
 
Property, plant and equipment Property, plant and equipment are stated at 
historic cost less depreciation and any provision for impairment. Historic cost 
comprises the purchase price together with any incidental costs of acquisition. 
Depreciation is calculated to write off the cost, less residual value, of 
tangible fixed assets in equal annual instalments over their estimated useful 
lives as follows: 
 
 
Plant and machinery 3-5 years 
Fixtures and fittings 3 years 
 
 
The carrying values of plant and equipment are reviewed for impairment when 
events or changes in circumstances indicate that carrying value may not be 
recoverable. The assets residual values and useful lives are reviewed and 
adjusted, if appropriate, at each financial year end. 
 
 
Internally-generated intangible assets - product research and development 
Development expenditure on new or substantially improved products is capitalised 
as an intangible asset and amortised through cost of sales over the expected 
useful life of the product concerned. Capitalisation commences from the point at 
which the technical feasibility and commercial viability of the product can be 
demonstrated and the Group is satisfied that it is probable that future economic 
benefit will result from the product once completed. This is usually at the 
point of regulatory filing in a major market and approval is highly probable. 
Capitalisation ceases when the product is ready for launch. Where assets are 
acquired or constructed in order to provide facilities for research and 
development over a number of years, they are capitalised and depreciated over 
their useful lives. Expenditure relating to clinical trials is accrued on a 
percentage-of-completion basis with reference to fee estimates with third 
parties. 
 
 
Expenditure on research and development activities which do not meet the above 
criteria is charged to the income statement as incurred. 
Financial instruments The Group's financial instruments comprise cash and cash 
equivalents, held-to-maturity financial assets and various receivables and 
payables, such as trade receivables and trade and other payables, which arise 
directly from its operations. The Group does not enter into derivative 
transactions or other forms of hedging arrangements. 
 
 
Held-to-maturity investments Held-to-maturity investments are non-derivative 
financial assets with fixed or determinable payments and fixed maturities that 
the Group's management has the positive intention and ability to hold to 
maturity. Assets in this category are held at amortised cost. Held-to-maturity 
investments include short-term investments with original maturities of more than 
3 months. 
 
 
Cash and cash equivalents Cash and cash equivalents comprise cash on hand and 
demand deposits together with other, short-term, highly liquid investments that 
are readily convertible into known amounts of cash and which are subject to an 
insignificant risk of changes in value.. 
 
 
Foreign currencies  Transactions in foreign currencies are translated into 
sterling at the rate of exchange ruling at the transaction date. Monetary assets 
and liabilities in foreign currencies are retranslated into sterling at the 
rates of exchange ruling at the balance sheet date. Differences arising due to 
exchange rate fluctuations are taken to the income statement in the period in 
which they arise. 
 
 
 
 
2.  Share Capital 
 
 
 
 
+----------------------------+--------------+----------+----------+--------+ 
|                            |    Number of |    Share |    Share |  Total | 
|                            |     ordinary |  capital | premium  | GBP000 | 
|                            |       shares |   GBP000 |   GBP000 |        | 
+----------------------------+--------------+----------+----------+--------+ 
|                            |              |          |          |        | 
+----------------------------+--------------+----------+----------+--------+ 
|                            |              |          |          |        | 
+----------------------------+--------------+----------+----------+--------+ 
| At 1 January, 31 December  |   25,949,996 |    2,595 |   24,442 | 27,037 | 
| 2007 and 31 December 2008  |              |          |          |        | 
+----------------------------+--------------+----------+----------+--------+ 
 
 
The authorised share capital of the Company at 31 December 2008 was 
GBP7,700,000 divided into 77,000,000 ordinary shares of 10p each 
(2007: 77,000,000). 
 
 
All issued shares are fully paid. 
 
 
The rights and restrictions attaching to the ordinary shares are set out in the 
Articles of Association. 
 
 
Capital management objectives and policies 
 
 
Evolutec Group Plc's capital management objectives are: 
 
 
  *  to ensure the Group's ability to continue as a going concern 
  *  to provide an adequate return to shareholders 
 
 
 
By seeking a single investment opportunity in the technology, healthcare or 
service related sectors. 
 
 
The Group monitors capital on the basis of the carrying value of the amount of 
equity. 
 
 
 
 
3.  Other reserves 
 
 
+---------------------+-------------+------------+----------+------------+--------+ 
|                     | Share-based |    Capital |   Merger | Own shares |  Total | 
|                     |    payments | redemption |  reserve |    held by | GBP000 | 
|                     |     reserve |    reserve |   GBP000 |   Employee |        | 
|                     |      GBP000 |     GBP000 |          |    Benefit |        | 
|                     |             |            |          |      Trust |        | 
|                     |             |            |          |     GBP000 |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Group               |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Balance at 1        |         565 |      4,804 |    3,734 |       (20) |  9,083 | 
| January 2007        |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Share-based         |       (565) |          - |        - |          - |  (565) | 
| payments credit     |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Balance at 31       |           - |      4,804 |    3,734 |       (20) |  8,518 | 
| December 2007       |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
|                     |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Balance at 31       |           - |      4,804 |    3,734 |       (20) |  8,518 | 
| December 2008       |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
|                     |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
|                     |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Company             |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Balance at 1        |         565 |      4,804 |        - |       (20) |  5,349 | 
| January 2007        |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Share-based         |       (565) |          - |        - |          - |  (565) | 
| payments credit     |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Balance at 31       |           - |      4,804 |        - |       (20) |  4,784 | 
| December 2007       |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
|                     |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
| Balance at 31       |           - |      4,804 |        - |       (20) |  4,784 | 
| December 2008       |             |            |          |            |        | 
+---------------------+-------------+------------+----------+------------+--------+ 
 
 
 
 
4. Publication of non-statutory accounts 
 
 
The financial information set out in this preliminary announcement does not 
constitute statutory accounts as defined in section 240 of the Companies Act 
1985. 
 
 
The balance sheets at 31 December 2008 and the consolidated income statement, 
statements of changes in shareholders' equity, cash flow statements and 
associated notes for the year then ended have been extracted from the Group's 
2008 statutory financial statements upon which the auditor's opinion is 
unqualified and does not include any statement under section 237 of the 
Companies Act 1985. 
 
 
These financial statements have not yet been delivered to the Registrar of 
Companies. 
 
 
5.Copies of the annual report and financial statements 
 
 
The Annual Report and Financial Statements will be posted to shareholders today. 
Further copies will be available to the public, free of charge at the Company's 
registered office, 3 More London Riverside, London SE1 2AQ and on the Company's 
website, www.evolutec.com. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR UVSORKARUUAR 
 

Evolutec (LSE:EVC)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024 Haga Click aquí para más Gráficas Evolutec.
Evolutec (LSE:EVC)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024 Haga Click aquí para más Gráficas Evolutec.