TIDMEDEN

RNS Number : 5625D

Eden Research plc

30 June 2021

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

30 June 2021

Eden Research Plc

("Eden" or "Company")

Preliminary Results for Year Ended 31 December 2020

Eden Research plc (AIM: EDEN), the AIM-quoted company focused on sustainable biopesticides for use in global crop protection, animal health and consumer products industries, announces its preliminary results for the year ended 31 December 2020.

Commercial and operational highlights:

-- A one-year exclusive evaluation agreement signed with Corteva Agriscience (" Corteva ") in January 2020 to evaluate seed treatment applications of Eden's products and Sustaine(R) technology. Corteva is the world's largest "pure-play" agricultural company

-- First sales of bionematicide, Cedroz(TM), in Mexico during 2020 and new regulatory approvals received for Mevalone(R) (biofungicide) and Cedroz

-- Approval of Mevalone in Australia in August 2020, the first approval for Eden's products in the Southern Hemisphere

-- Organic approval in the European Union (" EU ") received for all three of Eden's terpene active ingredients thymol, eugenol and geraniol. Organic product certification of Mevalone and Cedroz in a number of EU territories, including key countries France and Spain

-- Relocation of offices and the opening of Eden's formulation, analytical and biology laboratories at Milton Park, Oxfordshire

-- Continued expansion of the team and in-house technical expertise with the appointment of a Regulatory Director and Global Head of Biology

Financial highlights

   --      Revenue of GBP1.4m (2019: GBP1.8m*) 
   --      Operating loss of GBP2.2m (2019: GBP1.4m) 
   --      Loss before tax of GBP2.5m (2019: GBP1.5m) 
   --      Loss per share of 0.66p (2019: 0.55p) 
   --      Net cash of GBP7.3m (2019: GBP0.5m) 
   --      Product sales of GBP1.1m (2019: GBP1.4m*) 

*See "Prior year Adjustment" note below

Post period end:

   --      Eden received London Stock Exchange's Green Economy Mark in January 2021 

-- Sipcam Oxon, Eden's commercial partner, received authorisation for the sale of Eden's biofungicide in Spain in March 2021

-- An exclusive commercialisation, supply and distribution agreement was signed with Corteva for Eden's seed treatment product based on Eden's active ingredients and Sustaine

-- Eastman Chemical Company, Eden's commercial collaborator, received authorisation for the sale of Cedroz in Italy in May 2021

The Group's full Report and Accounts are available at www.edenresearch.com

Lykele van der Broek, Chairman commented: "It goes without saying that 2020 was an unusual and challenging year for everyone in different ways. Clearly, the global COVID-19 pandemic has caused complex and unforeseen issues for people and businesses across the globe. Challenges have arisen which have required us all to adapt and adopt new ways of working, enabling life and work to continue as close to normal as possible.

Eden has not been immune to the challenges from the global COVID-19 pandemic. For example, we have seen a number of limitations with our field trials and some short-term delays in the regulatory process and product approvals globally as a result of logistical issues associated with various lockdowns and other restrictions worldwide.

However, we are proud of the fact that Eden has made significant strides forward in the past year, despite the unprecedented backdrop we have all faced. Indeed, we have seen the continued commercialisation of our products, the building of our financial resilience, the development of our operations and the strengthening of our reputation as a growing and innovative company aligned with the transition to a more sustainable world.

We have also seen 2021 start as we mean to go on, by signing a landmark distribution agreement for our Sustaine (R) technology with Corteva Agriscience, and receiving the London Stock Exchange's Green Economy Mark in recognition of our contribution to the global green economy. This focus on Eden's sustainable credentials will continue to be a focus throughout 2021 and beyond, as investors are increasingly aware of the environmental impact of their investment decisions."

Current trading and COVID-19 update

Our overriding objective in the current crisis has been to ensure the safety of our employees. Following governmental advice, the team has been working remotely, where practicable, and delivering largely uninterrupted services to customers. The Group already has a lean cost base with a number of its activities outsourced and has therefore made no material cost cutting to date but will keep this under review. The Group's cash position remains strong with GBP6.0m of cash available as at 31 May 2021.

Trading in the first part of 2021 has largely been in line with management expectations, based on the current geographical footprint which drives product sales revenue and is intrinsicly linked to regulatory approvals. Some delays have been experienced with shipping of raw materials, due to the on-going, global shortage of sea containers and other supply chain-related matters, the effect of which may have an impact upon revenue this year.

We are still seeing some delays with regulatory authorities, not least in the US, where we are awaiting approval of our three active ingredients, as well as our first two agrochemical products, Mevalone and Cedroz, though we still expect to see those come through in 2021, in time for the 2022 growing season.

The on-going social distancing and other travel restrictions globally are likely to continue to impact the ability of our distributors to interact with customers, and growers' reduced ability to harvest crops, due to the lack of appropriate labour, may impact on their investment in agrochemicals.

Given the uncertainty regarding the level and duration of any disruption in each of the markets in which the Group operates or plans to operate, it continues to be difficult to assess what, if any, commercial and financial impact there may be in 2021 and beyond. We will update the market with financial guidance as soon as practicable, and at a time when we can do so with a reasonable degree of certainty.

Financial Reporting Council ("FRC") Enquiries

In March 2021, the Company received a request for information from the Corporate Reporting Review team at the Financial Reporting Council regarding a number of transactions and disclosures relating to TerpeneTech (UK) and TerpeneTech (Ireland), as reported in the 2019 Report and Accounts.

As a result of this review, a prior year adjustment to revenue and cost of sales was identified (see Prior Year Adjustment note below). There was no impact on the reported net loss for the prior year and no impact on the prior year Balance Sheet or Cashflow Statement. In addition, the Directors have provided enhanced disclosures in the notes to the accounts.

When reviewing the Company's 2019 Annual Report and Accounts, the FRC has made clear to us the limitations of its review as follows:

-- its review is based on the 2019 Annual Report and Accounts only and does not benefit from a detailed knowledge of the Group's business or an understanding of the underlying transactions entered into;

-- communications from the FRC provide no assurance that the Company's 2019 Annual Report and Accounts are correct in all material respects and are made on the basis that the FRC (and its officers, employees and agents) accepts no liability for reliance on them by the Company or any third party, including but not limited to investors and shareholders; and

-- the FRC's role is not to verify information provided but to consider compliance with reporting requirements.

The Committee reviewed the disclosures and amendments proposed by management and concluded that they are appropriate.

The following paragraphs are based on FRC's 'Summary of Findings', which shall be published by FRC later in the year, as part of their normal operating procedures:

Transactions with associate

FRC asked for more information about the Group's sale of geraniol to its associate, TerpeneTech (UK), and the Group's acquisition of an intangible asset from the associate. FRC also queried the existence of, and accounting for, any unrealised gain or loss (in applying the equity method) arising from such transactions.

The Company explained that it had reconsidered the guidance in IFRS 15 'Revenue from Contracts with Customers' in relation to its arrangement with the associate for the sale of geraniol. As a result, the Company acknowledged that the Group accounts (in addition to recognising the Group's share of the result of the associate through the normal equity accounting) should have recognised revenue based upon the margin it was entitled to receive from the associate's sale of geraniol instead of on a gross basis. Consequently, the Company agreed to restate comparative amounts in the following year's income statement accordingly (See "Prior Year Adjustment' note below). As the change affected a primary statement, FRC asked the company to disclose the fact that the matter had come to its attention as result of FRC's enquiry.

The Company provided a satisfactory explanation in respect of the purchase of the intangible asset. The Company also acknowledged that there was a gain on the sale of the intangible asset by the associate for which its share had not been eliminated when preparing the Group accounts, but explained that the adjustment was considered immaterial.

Impairment review of investment in associate

FRC requested information about the impairment review performed for the Company's investment in its associate, Terpene Tech (UK). The Company provided a satisfactory analysis of the assessment performed. The Company agreed to enhance the disclosure in respect of the impairment review in future annual accounts, including an improved analysis of the key assumptions made.

Investment in subsidiary

FRC asked the company to clarify its judgement made in determining that the Company controls TerpeneTech (Ireland). The Company provided a satisfactory explanation and agreed to improve the disclosure in future annual accounts to more clearly explain the basis for its conclusion.

FRC closed its enquiries in June 2021.

Prior Year Adjustment

Following the incorporation of Terpene Tech (Ireland) in 2019, the Group is reorganising the roles of TerpeneTech (Ireland) and TerpeneTech (UK) in the sale of geraniol and certain other products.

Following communications with the Financial Reporting Council, the Directors have reconsidered the arrangements that were in place in the prior year (and which remained in place in the current year) in regard to sales made by TerpeneTech (Ireland).

The Directors have concluded that TerpeneTech (Ireland) was acting as an agent in these transactions and should have recognised sales of GBP24,730 being the 10% margin on the sales of geraniol rather than recognising gross sales and cost of sales. As such, they have restated the Group's revenue and cost of sales in the prior year.

As a consequence of this restatement, revenue has been reduced by GBP222,574 and cost of sales have been reduced by GBP222,574 in the Income Statement for the year ending 31 December 2019. There was no impact on loss before or after taxation or net assets and no impact on any opening balances.

As the arrangements change going forward, the Directors will reconsider the revenue recognition.

For further information contact:

 
 
   Eden Research plc                              www.edenresearch.com 
 Sean Smith 
  Alex Abrey                                    01285 359 555 
 
   Cenkos Securities plc (Nominated advisor 
   and broker) 
 Giles Balleny / Camilla Hume/ Mark Connelly 
  (corporate finance) 
  Michael Johnson (sales)                       020 7397 8900 
 
   Hawthorn Advisors (Financial PR) 
 Lorna Cobbett / Victoria Ainsworth             eden@hawthornadvisors.com 
 

Notes to Editors:

Eden Research is an AIM quoted company that develops and supplies breakthrough biopesticide products and natural, plastic-free microencapsulation technologies to the global crop protection, animal health and consumer products industries.

Eden's Sustaine(R) encapsulation technology is used to harness the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic compounds to enhance their performance and ease-of-use. Sustaine microcapsules are naturally-derived, plastic-free, biodegradable micro-spheres derived from yeast. It is one of the only viable, proven and immediately registerable solutions to the microplastics problem in formulations requiring encapsulation.

Eden has numerous patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. Eden was admitted to trading on AIM in May 2012.

For more information about Eden, please visit: www.edenresearch.com .

Eden Research plc

Chairman's Statement

For the year ended 31 December 2020

Introduction

It goes without saying that 2020 was an unusual and challenging year for everyone in different ways. Clearly, the global COVID-19 pandemic has caused complex and unforeseen issues for people and businesses across the globe. Challenges have arisen which have required us all to adapt and adopt new ways of working, enabling life and work to continue as close to normal as possible.

Eden has not been immune to the challenges from the global COVID-19 pandemic. For example, we have seen a number of limitations with our field trials and some short-term delays in the regulatory process and product approvals globally as a result of logistical issues associated with various lockdowns and other restrictions worldwide.

However, we are proud of the fact that Eden has made significant strides forward in the past year, despite the unprecedented backdrop we have all faced. Indeed, we have seen the continued commercialisation of our products, the building of our financial resilience, the development of our operations and the strengthening of our reputation as a growing and innovative company aligned with the transition to a more sustainable world.

We have also seen 2021 start as we mean to go on, by signing a landmark distribution agreement for our Sustaine (R) technology with Corteva Agriscience, and receiving the London Stock Exchange's Green Economy Mark in recognition of our contribution to the global green economy. This focus on Eden's sustainable credentials will continue to be a focus throughout 2021 and beyond, as investors are increasingly aware of the environmental impact of their investment decisions.

Products and technology

Our development work has managed to continue largely as hoped during 2020, including Eden's insecticide and seed treatment products, as well as third party active ingredients which use Eden's proprietary Sustaine (R) technology. We look forward to sharing the results of our work here during 2021 and beyond.

We have continued to expand our global product footprint with authorisation of Eden's bio-fungicide Mevalone (R) in Australia, for use on both wine and table grapes under the trade name "Novellus"(TM), and of Cedroz(TM) in Spain and France. Closer to home, we announced a partnership with M H Poskitt, a leading producer of root vegetables in the UK, to develop and trial a new bio-fungicide product. These agreements are important steps in the expansion and commercialisation of Eden's product base.

We have also been delighted to sign our first commercial agreement for seed treatment applications, which grants exclusive distribution rights of our proprietary product incorporating our Sustaine(R) technology to Corteva Sciences, the fourth largest agriculture company in the world. We have high hopes for the commercial potential for this product area.

Funding

In March 2020, Eden concluded a fundraise of GBP10.4 million (before expenses), which saw several new institutional investors joining the share register. This funding provides Eden with the financial resource to invest in the development of its insecticide and seed treatment products. It also represented a significant achievement for Eden, as the successful fundraise came just as the effects of the global pandemic were starting to be felt in the financial markets. This demonstrated the strength of Eden as an investment prospect.

Operations

Marking the beginning of a new chapter in Eden's growth story, 2020 has seen the investment in our own laboratory facilities alongside a new office. Relocating to the new site at Milton Park in Oxfordshire, one of Europe's leading science and technology communities, means that we are able to undertake development work in-house for the first time, which allows increased flexibility and efficiency.

As well as moving to new laboratory facilities, we have seen the expansion of the Eden team in 2020. Despite the unique challenges of recruiting and onboarding new members during a pandemic, our new team members are already making valuable contributions to the expansion of Eden's capabilities and providing support to its existing and potential customers.

Market opportunity

Against a backdrop of seismic changes across the global landscape, many trends have remained consistent in 2020. Driven by changing consumer habits and growing investor awareness of environmental factors, the agricultural industry has continued to adapt and find new ways of growing food to feed larger populations more sustainably.

Eden is well positioned to capitalise on this trend as its products and technologies align closely with global demand for plastic-free and sustainable crops. As well as being first movers in the space, Eden maintains an innovative and nimble approach to its product and technological developments which helps us foresee and respond to fast changing dynamics.

From a standing start approximately twenty years ago, the biopesticides portion of the crop protection market currently has a 15% compound annual growth rate and is forecast to have a market value of over $11 billion by 2027. Recognising this considerable and growing market, Eden has positioned itself to develop, register and market sustainable biopesticide products based around its three Europe-registered active ingredients.

Mevalone (R) and Cedroz ä , Eden's first two products, boast high efficacy and the added benefits of maximum residue level exemption, short pre-harvest intervals, competitive pricing, and close alignment with the direction of regulatory changes. Eden's Sustaine (R) microencapsulation technology offers an effective solution to consumer concerns around microplastics and consequently has received considerable interest from external parties, most recently demonstrated through our landmark agreement with Corteva, which is a significant achievement for the company.

Microplastics have been a well-publicised environmental cause for campaigners in recent years. Public pressure has led to policy changes and the European Union has announced its intention to publish new regulations which could see a ban on the use of polymers in certain industries, including crop protection, where polymers are widely used to formulate active ingredients.

With global regulatory changes highly likely, the crop protection industry will need to adapt its practices quickly, but has a history of being slow to implement new processes. Following an increase in the number of enquiries from major players in the crop protection industry in 2020, Eden has seen first-hand evidence of the industry's focus on adapting new practices swiftly.

Looking ahead

Having dealt with the unique circumstances 2020 has presented us with, Eden has moved into fiscal 2021 well-funded and well positioned to achieve its mission to become a leader in biopesticide products and natural, plastic-free microencapsulation technologies to the global crop protection, animal health and consumer products industries.

We have managed to manoeuvre our way through the global pandemic relatively unscathed and the future for Eden looks promising, with exciting developments in the pipeline.

The recently announced agreement with Corteva is, of course, significant to Eden and the seed treatment product area is an exciting addition to the already valuable, diverse portfolio of products and applications that the business has generated over the years.

The London Stock Exchange Green Economy Mark demonstrates the strength of Eden's position as a sustainable company at a time when demonstrating environmental credentials is a key priority and distinction for any company.

I would like to thank our shareholders for their on-going support and convey to you my confidence in the Eden team and the success they are working towards for the business. There is still much more to come which we look forward to sharing with you in due course.

Lykele van der Broek

Non-Executive Chairman

29 June 2021

Eden Research plc

Chief Executive Officer's Review

For the year ended 31 December 2020

Introduction

It has been an unprecedented year for businesses across the globe and Eden has not been immune to the disruption caused by the COVID-19 pandemic. However, we are extremely proud of the resilience we have demonstrated against this exceptional backdrop and the continued progress we have made in advancing our strategy and positioning in the rapidly growing biopesticides market.

The financial year has seen us expand our footprint, both geographically and through new product development, supported by the successful fund raise delivered in March 2020. We are also delighted to have signed a key distribution agreement with Corteva Agriscience in May 2021 for our first seed treatment product which uses Eden's Sustaine(R) technology combined with our plant-derived active ingredients, which creates a solid commercial foundation for our future work in the new area of seed treatments. We are also actively pursuing additional opportunities in seed treatments.

We were also pleased to receive the London Stock Exchange's Green Economy Mark in January 2021, which recognises the role we are playing in supporting the transition to a sustainable world and highlights our credentials as a sustainable investment opportunity on the London market.

Section two: Delivering on our strategy

Eden continues to be the only UK-quoted company focused on biopesticides for sustainable agriculture and we are well positioned to capitalise on this rapidly growing market, which is anticipated to be worth over $11 billion by 2027.

Our vision remains the same: To be a global leader in sustainable crop protection through the development of bioactive products enabled or enhanced by our novel encapsulation and delivery technologies, making the most of the significant market opportunity available.

In the near term, our strategic focus is on:

- Registering and commercialising our two approved products, Mevalone (R) and Cedroz(TM) in new territories and for new applications

- Developing the use of our microencapsulation technology, Sustaine(R) , with new active ingredients, including conventional agrochemicals

   -     Building on existing opportunities with Corteva Agrisciences, Sipcam and other collaborators 
   -     Advancing the development of our first insecticide products 

We continue to make significant progress on these goals, supported by our financial resources, which puts Eden in a good position to capitalise on the work we have done to date and move forward with new commercial growth opportunities.

Notable commercial and operational highlights from 2020 include:

-- Inclusion of Eden's three active ingredients, geraniol, eugenol and thymol , in the EU's Organic Production Regulation , opening the door for the use of Eden's formulated product in organic agriculture in the EU

-- Commencement of an evaluation agreement with Corteva Agriscience in the new area of seed treatments

   --    New authorisations for the use of Mevalone(R) in a range of new uses. 

-- Authorisation of Eden's nematicide formulation, Cedroz(TM) , in Greece, Spain, France, Italy and the Netherlands.

-- The granting of patents for our Sustaine (R) encapsulation technology and compositions for insecticide products, in both the US and Australia

   --    The new authorisation of our bio-fungicide, marketed as Novellus, in Australia 

-- The announcement of a partnership with M H Poskitt, to develop and trial a new bio-fungicide product derived from a common weed and designed to protect and improve the quality of vegetables

-- The opening up of Eden's new laboratory facilities in Milton Park, Oxfordshire, allowing Eden to undertake more in-house development work, including new product formulation, microbiological screening, plant and seed evaluations and analytical work.

-- The expansion of our team, through the appointment of Dr. Michael Carroll as Director of Regulatory Affairs in April 2020 and Dr. Aoife Dillon to the role of Head of Biology in July 2020.

In May 2021, we were delighted to sign an exclusive commercialisation, supply and distribution agreement with Corteva Agriscience, the fourth largest agriculture inputs company in the world. This agreement provides Corteva with exclusive distribution rights for Eden's seed treatment product based on Eden's active ingredients and Sustaine(R) encapsulation technology in Europe, Serbia and the United Kingdom and follows an evaluation in select seed treatment applications. Over the coming two years, Corteva and Eden will work collaboratively to register, commercialise and ultimately distribute new seed treatments for at least one major crop, and it is anticipated that this may be expanded following initial success.

This agreement represents a major commercial milestone for Eden as it is intended to be the first revenue generating use of Eden's Sustaine (R) containing products in the treatment of seeds and provides us with the opportunity to capture a significant share of this market.

Section three: Financial Review

Revenue for the year decreased to GBP1.4m (2019 [restated]: GBP1.8m) primarily due to the reduction in one-off receipts to GBPnil (2019: GBP0.3m).

The focus for the business remains to grow revenue through product sales which will ultimately provide a sustainable, consistent source of income for the Company. This was not the case in 2020 with product sales decreasing to GBP1.1m (2019 [restated]: GBP1.4m) due to impact of the global pandemic on wine grape production.

The cash position at the year-end was GBP7.3m (2019: GBP0.5m), following the successful fundraise in March 2020 with gross proceeds of GBP10.4m.

Administrative expenses in the year increased to GBP2.2m (2019: GBP2.0m) with the introduction of new team members and additional costs in respect of the new office and laboratory facilities. Consequently, operating loss increased to GBP2.2m (2019: GBP1.4m). The increase in operating loss is due to the aforementioned reduction in one-off receipts, increased staff costs, as well as amortisation of GBP0.6m (2019: GBP0.5m) and depreciation of GBP0.1m (2019: GBPnil).

Following a review of the carrying value of the investment in TerpeneTech (UK), Eden's associate company, an impairment of GBP0.3m has been made (2019: GBPnil). For more details, please see note 15 to the financial statements.

Throughout the year, the Company remained debt free with no long-term debt or lending facilities in place or expected to be required. Following the fundraise in March 2020, the Company is well funded and placed to execute its business plan which involves investing in product trials and marketing authorisations which are required to increase product sales revenue and the geographical footprint in which Eden can operate, in addition to growing the team which should enable the Company to meet its ambitious growth targets.

Section four: 2021 outlook

The global pandemic continues to unfold with some promising developments relating to the vaccination of large numbers across the developed world, but the full impact on sales development cannot be assessed reliably at this time. We anticipate the potential for a negative impact on demand for high-value crop inputs, such as Eden's products, to persist through 2021. With the on-going restrictions on travel, there may be an impact on face to face business meetings which could also impact revenue. The COVID-19 pandemic will also continue to slow the work rate of many regulatory agencies which ultimately control the commencement of new revenues in this highly regulated industry. As in previous years, the growth of the addressable market for our products is inextricably linked to new regulatory authorisations, and therefore Covid-related impacts on regulatory approval processes will continue to adversely affect Eden's sales growth until this situation is resolved.

However, in 2021 the Company expects to build on the sales achieved in the territories where it received approvals in 2020, such as Mevalone (R) in Australia, Cedroz ä in Greece and Mexico as well as the acceptance of Mevalone (R) and Cedroz ä for organic agriculture in key countries.

The rollout of Cedroz ä in multiple new territories continues as a priority, which will increase the geographical footprint of product sales.

The Company currently anticipates that the US EPA will approve the sale of Mevalone (R) and Cedroz ä in the United States during 2021. However, there is little doubt that the current situation with COVID-19 and the consequential shut-down of certain government services, coupled with a fundamentally changed working dynamic, will have an adverse impact on operations at EPA and, subsequently, the pace of approvals. Although the Company might expect to see some level of channel stocking, the overall levels of sales in 2021 will depend largely upon the timing of approvals relative to the growing season.

Section five: Driving positive impact

Eden received the London Stock Exchange Green Economy Mark in January 2021, highlighting our credentials as a business that is focused on driving the transition to a sustainable world. This accolade is given to London-listed companies that derive over 50% of their total annual revenue from products and services that contribute to the global green economy. It is a significant accreditation for Eden and a formal acknowledgement of our focus on providing sustainable solutions to the global agriculture industry.

Our portfolio of products helps farmers to integrate greener practices for the benefit of both consumers and the wider agricultural ecosystem. Our goal is to expand both our product and geographical offering to support growers in more regions through the implementation of sustainable processes in their production.

In addition, our patented microencapsulation technology, Sustaine(R), provides an exciting opportunity to address the rising presence of microplastics across the globe, including soil, water and plant and animal tissues.

Sustaine(R) microcapsules are naturally sourced, plastic-free, biodegradable micro-spheres derived from yeast extract, which enables farmers to deliver a wide range of crop protection products, without releasing microplastics into the environment.

This technology has potential application beyond agriculture and we are continuing to assess how Sustaine (R) can be applied to the animal and consumer product sector to help these industries reduce their use of microplastics.

Brexit

The impact of Brexit is still being understood by many UK companies, including Eden.

The Company's ownership of its EU approvals of Mevalone (R) and its constituent active substances appears to be unaffected by Brexit, since guidance was published stating that the owner of such approvals can continue to be a UK resident company.

We know that seeking regulatory approval in the UK for Eden products has become somewhat more challenging, and the Company is weighing up market opportunities and costs post-Brexit. We are now well-placed to navigate what are likely to be dynamic and complex regulatory challenges. From an operational perspective, the Company has not seen any significant issues with the Company benefitting from having toll-manufacturing facilities in mainland Europe, though it continues to monitor this situation.

The Company also has manufacturing capabilities in the UK as well as the US which provide some flexibility. Raw materials are currently sourced from outside of the EU and there has been minimal impact on this part of the supply chain.

COVID-19

This has been an exceptionally challenging time for the agriculture industry, and a united effort is required to ensure that the provision of fresh food and produce is not disrupted, whilst the COVID-19 pandemic continues.

Eden is committed to continuing to provide its products and technologies to the global crop production industry through its global partnership network.

At the onset of the pandemic in March 2020, there was no direct operational impact for Eden, and our stakeholders were reassured by our strengthened balance sheet, following our March 2020 fundraising.

Mild levels of disruption were experienced as the pandemic unfolded, including import and export activities, limitation on field trial capacity due to reduced workforces, and limited promotional activity. Some regulatory authorities were working at reduced capacity and we experienced delayed product approvals as a result. However, we continued to make progress with new authorisations from late May 2020 onwards. We have also been able to execute on some key operational plans such as opening our new facilities in Oxfordshire and making key hires.

Our position on the Covid-19 pandemic remains as follows:

1 We Are Funded for Future Growth

In March 2020, we raised GBP10.4 million (gross) from investors, a feat that the whole team is proud of given the volatility and uncertainty in the markets at the time. This "vote of confidence" from our shareholders (both existing and new) will help us capitalise on the global shift towards more environmentally friendly methods of crop protection, driving us towards becoming a leading provider of sustainable solutions for global agriculture. Though the coming months will continue to present challenges for the Company, our employees and our partners, Eden remains debt-free and has a strengthened balance sheet allowing us to execute on our exciting plans. Our outsourced manufacturing model means that we retain maximum flexibility over our choice of manufacturing locations with a low fixed cost base.

2 Our Industry Has a Pivotal Role to Play

As demand soared for food supply during the lockdown periods across the UK and beyond, the agriculture industry has played a vital role in feeding the world through the crisis and minimising the economic fallout. Plant protection products play a fundamental role in agricultural production - without them, we would not be able to cope adequately with global emergencies such as COVID-19. The biopesticides market outlook remains undoubtedly positive, with a clear demand from consumers for sustainably grown produce and in response, a notable shift from growers towards greener farming practices. As we step into the 'new normal', consumer demand for a chemical-free supply chain journey will only be more prevalent. Not only do people need food to survive, they remain conscious of where it comes from and care about the supply chain journey. The choices people are making to put healthy food on the table are driving what farmers grow in their fields and how they grow them with an increasing emphasis on sustainable practices and produce that is free from pesticide residues. This is the future of farming, and Eden seeks to position itself at the forefront of the movement towards sustainable farming practices.

3 Supporting Our Employees and Partners

As always, we are working closely with our partners as they continue their business of supplying our products to growers in an increasing number of countries. Our team is reviewing the situation every day so that we can adapt to any changes that may be experienced by our partners and ensure the health and safety of their workers is paramount. Closer to home, Eden's team are avoiding unnecessary travel and working remotely during the crisis, where practicable. I want to thank our partners and, of course, the farmers who cannot carry out their work remotely and who are working hard each day to ensure that we have enough to eat now and in the future. Their work cannot stop, and we are grateful now more than ever for all that they do to feed us.

TerpeneTech (UK)

TerpeneTech (UK) secured a CE mark for its head-lice treatment product in European Economic Area ("EEA") in 2018, which is the first step in the marketing and sales of such products. TerpeneTech (UK) has also established its first channel distribution partner who will target the UK market. The first product launch in the UK is currently expected to coincide with the back-to-school schedule in the autumn of 2021, having been delayed by the global pandemic with school children having been absent from school and demand for head-lice treatment products reduced accordingly.

Sales of the head-lice treatment product are expected to commence in other countries around the world in 2021 with TerpeneTech (UK) expected to sign an agreement with a new distribution partner later this year.

Sales of geraniol into the biocide sector have continued to increase year on year and TerpeneTech (UK) is now investigating the potential to register additional active ingredients under the EU's biocide directive.

TerpeneTech (Ireland)

In 2019, TerpeneTech (Ireland) was established in order to own the registration of geraniol under the EU's Biocidal Products Registration regulation, due to changes brought about by Brexit. The intention was for TerpeneTech (Ireland) to become the principal party, with TerpeneTech (UK) acting as its agent in the geraniol product sale business. This transition has not yet occurred and, as such, TerpeneTech (Ireland) remains, for the time being, as registration owner, but agent to TerpeneTech (UK) who still acts as the principal in the business of the TerpeneTech companies.

Further details can be found in note 35.

Dividends

There is no dividend to be paid or proposed in respect of 2020. The Board continues to monitor its dividend policy.

Section six: Summary

Eden continues to deliver on its strategic objectives against an uncertain global economic backdrop. We are pleased with the progress we have made this last year and are moving ahead with a growing product portfolio and partnership network, and an expanding regulatory and commercial footprint. Through challenging times, we have built a team that I am most proud of and a set of in-house capabilities that the Company has lacked previously.

In the year ahead, we will look to build on these firm new foundations through gaining additional product approvals in key territories, increasing sales of our existing products and continuing development work apace in new areas of application, working in partnership with an expanded range of collaboration partners, including some of the world's leading agricultural input companies.

I remain extremely proud of the work Eden is doing in contributing to more sustainable agricultural practices globally and I would like to take this opportunity to say thank you to the team for the incredible things they have achieved this year, against an unprecedented backdrop. As we look to fiscal 2021 and beyond, we remain focused on building a strong and sustainable future for our business, our products, and all our stakeholders, including our shareholders.

Sean Smith, Chief Executive Officer

Eden Research plc

Consolidated statement of comprehensive income

For the year ended 31 December 2020

 
                                                                                  2020              2019 
                                                                                         (Restated - see 
                                                                                                note 35) 
                                                                 Notes             GBP               GBP 
 
Revenue                                                            4         1,368,988         1,825,501 
Cost of sales                                                                (736,509)           (941,640) 
 
 
 
Gross profit                                                                   632,479           883,861 
 
Other operating income                                                           7,601                 - 
Amortisation of intangible 
 assets                                                                      (552,809)           (496,732) 
Administrative expenses                                                    (2,202,581)         (2,032,182) 
Share based payments                                                         (120,380)           (209,295) 
 
 
 
Operating loss                                                     5       (2,235,690)         (1,357,616) 
 
Investment revenues                                                8             5,725               807 
Finance costs                                                      9          (24,000)             (8,397) 
Foreign exchange gains/(losses)                                    9            35,706            (73,166) 
Impairment of investment in 
 associate                                                        15         (299,521)                   - 
Share of loss of equity accounted 
 Investee, net of tax                                              15         (30,352)            (41,001) 
 
 
 
Loss before taxation                                                       (2,548,132)         (1,479,373) 
 
Income tax income                                                 10           285,108           347,036 
 
 
 
Loss and total comprehensive 
 income for the year                                                       (2,263,024)         (1,132,337) 
 
 
 
Total comprehensive income for the 
 year is attributable to: 
- Owners of the parent company                                             (2,270,347)         (1,144,703) 
- Non-controlling interests                                                      7,323            12,366 
 
 
 
                                                                           (2,263,024)         (1,132,337) 
 
 
 
Earnings per share                                                11 
Basic                                                                          (0.66p)             (0.55p) 
Diluted                                                                        (0.66p)             (0.55p) 
 
The income statement has been prepared on the basis that all operations 
 are continuing operations. 
 
 

Eden Research plc

Consolidated statement of financial position

As at 31 December 2020

 
                                             2020                   2019 
                                                    (restated - see note 
                                                                    1.1) 
                                Notes         GBP                    GBP 
 
Non-current assets 
Intangible assets                12     6,729,483              5,581,005 
Property, plant and equipment    13       188,065                      - 
Right-of-Use assets              14       394,610                 61,750 
Investments                      15       419,865                749,738 
 
 
 
                                        7,732,023              6,392,493 
 
 
 
Current assets 
Inventories                      17       224,422                 68,423 
Trade and other receivables      18     1,396,308              1,633,092 
Current tax recoverable                   285,108                268,777 
Cash and cash equivalents               7,286,503                501,984 
 
 
 
                                        9,192,341              2,472,276 
 
 
 
Current liabilities 
 
Trade and other payables         19     1,454,955              1,348,588 
Lease liabilities                20        84,350                 22,812 
 
 
 
                                        1,539,305              1,371,400 
 
 
 
Net current assets                      7,653,036              1,100,876 
 
 
 
Non-current liabilities 
 
Trade and other payables         19       125,212                 99,008 
Lease liabilities                20       330,898                 46,687 
 
 
 
                                          456,110                145,695 
 
 
 
Net assets                             14,928,949              7,347,674 
 
 
 
 

Eden Research plc

Consolidated statement of financial position (continued)

As at 31 December 2020

 
                                                                                    2020           2019 
                                                                Notes                GBP            GBP 
 
Equity 
 
Called up share capital                                           23           3,803,402      2,071,893 
Share premium account                                             24          39,308,529     31,289,915 
Warrant reserve                                                   25             429,915        335,739 
Merger reserve                                                    26          10,209,673     10,209,673 
Retained earnings                                                           (38,842,259)     (36,571,912) 
Non-controlling interest                                        27                19,689         12,366 
 
 
 
Total equity                                                                  14,928,949      7,347,674 
 
 
 
The financial statements were approved by the board of directors 
 and authorised for issue on 29 June 2021 and are signed on its behalf 
 by: 
 
S Smith 
Director 
 
 

Eden Research plc

Company statement of financial position

As at 31 December 2020

 
                                                2020                   2019 
                                                       (restated - see note 
                                                                       1.1) 
                                Notes            GBP                    GBP 
 
Non-current assets 
Intangible assets                12        6,610,014              5,448,262 
Property, plant and equipment    13          188,065                      - 
Right-of-Use Assets              14          394,610                 61,750 
Investments                      15          419,865                749,738 
 
 
 
                                           7,612,554              6,259,750 
 
 
 
Current assets 
Inventories                      17          224,422                 68,423 
Trade and other receivables      18        1,444,308              1,633,092 
Current tax recoverable                      285,108                268,777 
Cash and cash equivalents                  7,286,503                501,984 
 
 
 
                                           9,240,341              2,472,276 
 
 
 
Current liabilities 
 
Trade and other payables         19        1,374,862              1,240,576 
Lease liabilities                20           84,350                 22,812 
 
 
 
                                           1,459,212              1,263,388 
 
 
 
Net current assets                         7,781,129              1,208,888 
 
 
 
Non-current liabilities 
 
Trade and other payables         19          125,212                 99,008 
Lease liabilities                20          330,898                 46,687 
 
 
 
                                             456,110                145,695 
 
 
 
Net assets                                14,937,573              7,322,943 
 
 
 
Equity 
 
Called up share capital          23        3,803,402              2,071,893 
Share premium account            24       39,308,529             31,289,915 
Warrant reserve                  25          429,915                335,739 
Merger reserve                   26       10,209,673             10,209,673 
Retained earnings                       (38,813,946)             (36,584,277) 
 
 
 
Total equity                              14,937,573              7,322,943 
 
 
 
 
 
As permitted by s408 Companies Act 2006, the company has not presented 
 its own income statement and related notes. The company's loss for 
 the year was GBP2,229,669 (2019 - GBP1,157,068 loss). 
 
The financial statements were approved by the board of directors 
 and authorised for issue on 29 June 2021 and are signed on its behalf 
 by: 
 
S Smith 
Director 
 
Company Registration No. 03071324 
 

Eden Research plc

Consolidated statement of changes in equity

For the year ended 31 December 2020

 
                           Share       Share      Merger     Warrant            Retained earnings                    Total   Non-controlling         Total 
                         capital     premium     reserve     reserve                                                                interest 
                                     account 
                Notes        GBP         GBP         GBP         GBP                          GBP                      GBP               GBP           GBP 
 
Balance at 1 
 January 
 2019                  2,071,893  31,289,915  10,209,673     653,446                 (35,954,211)                8,270,716                 -     8,270,716 
 
Year ended 31 
December 
2019: 
Loss and total 
 comprehensive 
 income for 
 the year                      -           -           -           -                  (1,144,703)              (1,144,703)            12,366     (1,132,337) 
Options 
 granted                       -           -           -     209,295                            -                  209,295                 -       209,295 
Options lapsed                 -           -           -   (527,002)                      527,002                        -                 -             - 
 
 
 
Balance at 31 
 December 
 2019                  2,071,893  31,289,915  10,209,673     335,739                 (36,571,912)                7,335,308            12,366     7,347,674 
 
 
 
Year ended 31 
December 
2020: 
Loss and total 
 comprehensive 
 income for 
 the year                      -           -           -           -                 (2,270,347)              (2,270,347)              7,323     (2,263,024) 
Issue of share 
 capital        23/24  1,731,509   8,018,614           -           -                            -                9,750,123                 -     9,750,123 
Options 
 granted         22            -           -           -      94,176                            -                   94,176                 -        94,176 
 
 
 
Balance at 31 
 December 
 2020                  3,803,402  39,308,529  10,209,673     429,915                 (38,842,259)               14,909,260            19,689    14,928,949 
 
 
 
 

Eden Research plc

Company statement of changes in equity

For the year ended 31 December 2020

 
                             Share        Share      Equity         Other       Retained         Total 
                           capital      premium     reserve      reserves       earnings 
                                        account 
                Notes          GBP          GBP         GBP           GBP            GBP           GBP 
 
Balance at 1 
 January 2019            2,071,893   31,289,915  10,209,673       653,446   (35,954,211)     8,270,716 
 
Year ended 31 
December 2019: 
Loss and total 
 comprehensive 
 income for 
 the year                        -            -           -             -    (1,157,068)     (1,157,068) 
Options 
 granted                         -            -           -       209,295              -       209,295 
Options lapsed                   -            -           -     (527,002)        527,002             - 
 
 
 
Balance at 31 
 December 2019           2,071,893   31,289,915  10,209,673       335,739   (36,584,277)     7,322,943 
 
 
 
Year ended 31 
December 2020: 
Loss and total 
 comprehensive 
 income for 
 the year                        -            -           -             -    (2,229,669)     (2,229,669) 
Issue of share 
 capital        23/24    1,731,509    8,018,614           -             -              -     9,750,123 
Options 
 granted         22              -            -           -        94,176              -        94,176 
 
 
 
Balance at 31 
 December 2020           3,803,402   39,308,529  10,209,673       429,915   (38,813,946)    14,937,573 
 
 
 
 

Eden Research plc

Consolidated statement of cash flows

For the year ended 31 December 2020

 
                                                    2020                          2019 
                                                                 (restated - see 
                                                                  note 1.1) 
                                Notes          GBP          GBP              GBP          GBP 
 
Cash flows from operating 
 activities 
 
Cash absorbed by operations      33                 (1,265,812)                     (1,278,429) 
 
Interest paid                                             (450)                         (1,344) 
Interest on lease liabilities                          (23,550)                         (7,053) 
Tax refunded                                            268,777                       272,720 
 
 
 
Net cash outflow from operating 
 activities                                         (1,021,035)                     (1,014,106) 
 
Investing activities 
Purchase of intangible 
 assets                                (1,701,287)                     (835,896) 
Purchase of property, plant 
 and equipment                           (200,758)                      (77,954) 
Interest received                            5,725                           807 
 
 
 
Net cash used in investing 
 activities                                         (1,896,320)                       (913,043) 
 
Financing activities 
Gross proceeds from 
 issue of shares                        10,389,053                             - 
Expenses incurred from 
 issue of shares                         (638,930)                             - 
Payment of lease liabilities              (44,457)                      (20,916) 
 
 
 
Net cash generated from/(used 
 in) financing activities                             9,705,666                        (20,916) 
 
 
 
Net increase/(decrease) 
 in cash and cash equivalents                         6,788,311                     (1,948,065) 
 
Cash and cash equivalents 
 at beginning of year                                   501,984                     2,478,740 
Effect of foreign exchange 
 rates                                                  (3,792)                        (28,691) 
 
 
 
Cash and cash equivalents 
 at end of year                                       7,286,503                       501,984 
 
 
 
Relating to: 
Bank balances and short-term 
 deposits                                             7,286,503                       501,984 
 
 
 
 

Eden Research plc

Company statement of cash flows

For the year ended 31 December 2020

 
                                                       2020                          2019 
                                                                                 (restated - see 
                                                                                       note 1.1) 
                                   Notes          GBP          GBP              GBP          GBP 
 
Cash flows from operating activities 
 
Cash absorbed by operations         33                 (1,265,812)                     (1,278,429) 
 
Interest paid                                                (450)                         (1,344) 
Interest on lease liabilities                             (23,550)                         (7,053) 
Tax refunded                                               268,777                       272,720 
 
 
 
Net cash outflow from operating 
 activities                                            (1,021,035)                     (1,014,106) 
 
Investing activities 
Purchase of intangible 
 assets                                   (1,701,287)                     (835,896) 
Purchase of property, plant 
 and equipment                              (200,758)                      (77,954) 
Interest received                               5,725                           807 
 
 
 
Net cash used in investing activities                  (1,896,320)                       (913,043) 
 
Financing activities 
Gross proceeds from issue 
 of shares                                 10,389,053                             - 
Expenses incurred from 
 issue of shares                            (638,930)                             - 
Payment of lease liabilities                 (44,457)                      (20,916) 
 
 
 
Net cash generated from/(used 
 in) financing activities                                9,705,666                        (20,916) 
 
 
 
Net increase/(decrease) in cash 
 and cash equivalents                                    6,788,311                     (1,948,065) 
 
Cash and cash equivalents at 
 beginning of year                                         501,984                     2,478,740 
Effect of foreign exchange 
 rates                                                     (3,792)                        (28,691) 
 
 
 
Cash and cash equivalents 
 at end of year                                          7,286,503                       501,984 
 
 
 
Relating to: 
Bank balances and short-term 
 deposits                                                7,286,503                       501,984 
 
 
 
 

Eden Research plc

Notes to the group financial statements

For the year ended 31 December 2020

 
1    Accounting policies 
     Company information 
     Eden Research plc is a public company limited by shares incorporated 
      in England and Wales. The registered office is 67C Innovation 
      Drive, Milton Park, Abingdon, Oxfordshire, OX14 4RQ. The company's 
      principal activities and nature of its operations are disclosed 
      in the directors' report. 
      The group consists of Eden Research plc and all of its subsidiaries. 
1.1  Accounting convention 
     Group and parent company financial statements have been prepared 
      in accordance with international accounting standards in conformity 
      with the requirements of the Companies Act 2006, except as otherwise 
      stated. 
     The financial statements are prepared in sterling, which is the 
      functional currency of the group. Monetary amounts in these financial 
      statements are rounded to the nearest GBP. 
 
      They have been prepared on the historical cost basis. The principal 
      accounting policies adopted are set out below. 
 
       Associates 
       Associates are those entities in which the Company has significant 
       influence, but not control, over the financial and operating policies. 
       Significant influence is presumed to exist when the Company holds 
       between 20 and 50 percent of the voting power of another entity, 
       or where the Company has a lower interest but the right to appoint 
       a Director. The company acquired 29.9% of TerpeneTech Limited 
       ("TerpeneTech (UK") during 2015; TerpeneTech (UK) is an associated 
       undertaking. 
 
       Application of the equity method to associates 
       The investment in TerpeneTech (UK) is accounted for using the 
       equity method. The investment was initially recognised at cost. 
       The company's investment includes goodwill identified on acquisition, 
       net of any accumulated impairment losses and any separable intangible 
       assets. The financial statements include the Company's share of 
       the total comprehensive income and equity movements of TerpeneTech 
       (UK), from the date that significant influence commenced. 
 
       Changes in presentation of the financial statements 
 
       Directors continue to assess the clarity of the financial statements 
       and the need for changes in presentation to enable and assist 
       understanding of users of the accounts as the operations of the 
       Group continue to evolve. 
 
 
 
1    Accounting policies (continued) 
1.1  Accounting convention (continued) 
           Following this consideration, the following changes have been 
            made in the current year, including changes in comparative figures, 
            to enhance presentation: 
 
             *    Right-of-use Assets have been presented on the face 
                  of the balance sheet (2019: as part of Property, 
                  plant and equipment). This reflects the increased 
                  quantum of this balance, following the move to the 
                  new office 
 
 
 
             *    Finance costs have been presented separately from the 
                  foreign exchange gains/losses in the consolidated 
                  income statement, consolidated and company cash flow 
                  statements and note 35, reflecting the increase in 
                  interest payable, coming chiefly as a result of the 
                  new leases. 
 
 
 
             *    Exchange differences on working capital balances have 
                  been removed as an adjustment to profit in arriving 
                  at Cash absorbed by operations in note 33 and removed 
                  as an adjustment to Cash absorbed by operations in 
                  arriving at Net cash outflow from operating 
                  activities on the face of the consolidated and 
                  company cash flow statements. There is no impact on 
                  Net cash outflow from operating activities. This is a 
                  best practice improvement, considered by the 
                  Directors to result in a more appropriate 
                  presentation. 
 
 
 
             *    Change in the EPS calculation to only include 
                  profit/loss attributable to the shareholders (which 
                  represents a correction of a trivial error in the 
                  prior year). 
 
 
 
            The above changes have had the following effect on the comparative 
            figures, which are considered to be immaterial: 
 
             *    Right-of-use Assets of GBP61,750 have been separately 
                  presented on the face of the consolidated and company 
                  balance sheet. 
 
 
 
             *    Finance costs of GBP8,397 have been presented 
                  separately from the foreign exchange losses of 
                  GBP73,166. 
 
 
 
             *    Exchange differences on working capital balances of 
                  GBP44,475 have been removed as an equal and opposite 
                  adjusting item in arriving at Net cash outflow from 
                  operating activities. 
 
 
 
             *    EPS has been restated from (0.54p) to (0.55p) for the 
                  year ended 31 December 2019. 
1.2    Basis of consolidation 
        The consolidated financial statements consolidate the financial 
        statements of the company and its subsidiary undertaking up to 
        31 December 2020. The profits and losses of the company and its 
        subsidiary are consolidated from the date from which control 
        is achieved. All members of the group have the same reporting 
        period. 
        Subsidiary undertakings are entities controlled by the Company. 
        The Company controls an entity when it is exposed to, or has 
        the right to, variable returns from its involvement with the 
        entity and has the ability to affect those returns through its 
        power over the entity. 
 
 
 
1    Accounting policies (continued) 
 
1.3  Going concern 
     The directors have, at the time of approving the financial statements, 
      a reasonable expectation that the group has adequate resources 
      to continue in operational existence for at least 12 months from 
      the approval of the financial statements. Thus, the financial 
      statements have been prepared on a going concern basis which 
      contemplates the realisation of assets and the settlement of 
      liabilities in the ordinary course of business. 
      The Group has reported a loss for the year after taxation of 
      GBP2,263,024 (2019: GBP1,132,337). Net current assets at that 
      date amounted to GBP7,653,036 (2019: GBP1,100,876). Cash at that 
      date amounted to GBP7,286,503 (2019: GBP501,984). As at 31 May 
      2021, the cash balance has reduced to GBP6,000,724, which is 
      ahead of the current year budget. The group is reliant on its 
      existing cash balance to fund its working capital. 
      The Directors have prepared budgets and projected cash flow forecasts, 
      based on forecast sales provided by Eden's distributors where 
      available, for a period of at least 12 months from the date of 
      approval of the financial statements and they consider that the 
      Company will be able to operate with the cash resources that 
      are available to it for this period. 
 
      The forecasts adopted include only revenue derived from existing 
      contracts. They do not include potential upside from on-going 
      discussions and negotiations with other parties not yet contracted, 
      as well as other 'blue sky' opportunities. 
 
      The impact of COVID has been considered in the forecasts. The 
      Group has not been significantly impacted by the pandemic although 
      it has led to some delays in product development process and 
      limited promotional activity. The forecasts reflect this with 
      the development expenditure timing based on the latest experience 
      with regulatory authorities and sales volumes on the latest distributors' 
      information which reflects their post-COVID demand. 
 
      In addition, the Group has relatively low fixed running costs 
      and, while mitigating actions are not forecast to be required 
      to support the going concern basis, the Directors have previously 
      demonstrated its ability to delay certain other costs, such as 
      Research and Development expenditure, in the event of unforeseen 
      cash constraints and are willing and able to delay costs in the 
      forecast period should the need arise. 
 
      The Directors have also considered a scenario whereby the Company 
      receives no revenue during the forecast period. Under this scenario, 
      a positive cash balance would be maintained over that period. 
 
      Consequently, the directors are confident that the company will 
      have sufficient funds to continue to meet its liabilities as 
      they fall due for at least 12 months from the date of approval 
      of the financial statements and therefore have prepared the financial 
      statements on a going concern basis. 
 
 
1    Accounting policies (continued) 
 
1.4  Revenue 
     Revenue is recognised only when the Company has satisfied a performance 
      obligation by transferring control to a customer. 
      Revenue represents amounts receivable by the Company in respect 
      of services rendered during the year in accordance with the underlying 
      contract of licence, stated net of value added tax. 
      Sales-based royalty income arising from licences of the Company's 
      intellectual property is recognised in accordance with the terms 
      of the underlying contract and is based on net sales value of 
      product sold by Eden's licensees. It is recognised when the underlying 
      sales occur. 
      Upfront and annual payments made by customers at commencement 
      and for renewal of distribution and other agreements are recognised 
      in accordance with the terms of the agreement. Where there is 
      no ongoing obligation on the Company under the agreement, the 
      payment is recognised in full in the period in which it is made. 
      Where there is an ongoing obligation on the Company, the separate 
      performance obligations under the agreement are identified and 
      revenue allocated to each performance obligation. Revenue is 
      then recognised when a corresponding performance obligation has 
      been met. 
      Each sale of a licence by the Company is assessed to determine 
      whether the licence is distinct from the sale of other goods 
      and services, and whether the licence granted provides use of 
      the Company's intellectual property as it exists at that point 
      in time, with no ongoing obligation on the Company, or alternatively 
      provides access to the intellectual property as it develops over 
      time. Where the Company has discharged all of its ongoing obligations 
      associated with the licence granted, revenue is recognised on 
      invoicing of the licence fee payment at which point the customer 
      can use and benefit from the licence. Where there is an ongoing 
      obligation on the Company, revenue is recognised in the periods 
      to which the obligations pertain. 
      Product sales are recorded once the ownership and related rights 
      and responsibilities are passed to the customer and the product 
      is made available to the partner to collect, or, if the Company 
      is responsible for the shipping, the product has been shipped 
      to the customer. 
     The following is a description of the principal activities from 
      which the Company generates its revenue. 
 
     Licensing fees 
     The Company receives licensing fees from partners who have taken 
      a licence for the right to use Eden's intellectual property, 
      usually defined by field of use and territory. These are identified 
      as right to use as the Company does not have an obligation to 
      undertake activities that significantly affect the relevant intellectual 
      property. 
     Milestone payments 
     The Company receives milestone payments from other commercial 
      arrangements, including any fees it has charged to partners for 
      rights granted in respect of distribution agreements. 
 
 
1    Accounting policies (continued) 
 
1.4  Revenue (continued) 
 
     Milestone payments (continued) 
      These agreements are bespoke and any such revenue is specific 
      to the particular agreement. Consequently, for each such agreement, 
      the nature of the underlying performance obligations is assessed 
      in order to determine whether revenue should be recognised at 
      a point in time or over time. 
 
      Revenue is then recognised based on the above assessment upon 
      satisfaction of the performance obligation. 
 
     R&D charges 
     The Company sometimes charges its partners for R&D costs that 
      it has incurred which usually relate to specific projects and 
      which it has incurred through a third party. 
 
     Upon agreement with a partner, or if some specific milestone 
      is met, then Eden will raise an invoice which is usually payable 
      between 30 and 120 days. Revenue is recognised upon satisfaction 
      of the underlying performance obligation. 
 
     Royalties 
     The Company receives royalties from partners who have entered 
      into a licence arrangement with Eden to use its intellectual 
      property and who have sold products, which then gives rise to 
      an obligation to pay Eden a royalty on those sales. 
 
     Generally, royalties relate to specific time periods, such as 
      quarterly or annual dates, in which product sales have been made. 
      Revenue is recognised in line with when these sales occur. 
      Once an invoice is raised by Eden, following the period to which 
      the royalties relate, payment is due to the Company is 30 to 
      60 days. 
 
     Product sales 
     Generally, where the company has entered into a distribution 
      agreement with a partner, Eden is responsible for supplying product 
      to that partner once a sales order has been signed. 
 
     At that point, Eden has the product manufactured through a third-party, 
      toll manufacturer. At the point at which the product is finished 
      and is made available to the partner to collect, or, if the Company 
      is responsible for the shipping, the product has been shipped, 
      the partner is liable for the product and obliged to pay Eden. 
      Normal terms for product sales are 90 to 120 days. Returns are 
      not accepted and refunds are only made when product supplied 
      is notified as defective within 60 days. 
 
      The Group does not have any contract assets or liabilities. 
 
 
1    Accounting policies (continued) 
1.5  Intangible assets other than goodwill 
     Intellectual property, including development costs, is capitalised 
      and amortised on a straight-line basis over its remaining estimated 
      useful economic life of 10 years in line with the remaining life 
      of the Company's master patent, which was originally 20 years, 
      with additional Supplementary Protection Certificates having 
      been granted in the majority of the countries in the EU in which 
      Eden is selling Mevalone (R) . The useful economic lie of intangible 
      assets is reviewed on an annual basis. 
 
 
1.6  Property, plant and equipment 
     Property, plant and equipment are initially measured at cost 
      and subsequently measured at cost, net of depreciation and any 
      impairment losses. 
 
     Depreciation is recognised so as to write off the cost or valuation 
      of assets less their residual values over their useful lives 
      on the following bases: 
 
     Leasehold land and buildings                                                     Over the term of the lease 
     Fixtures and fittings                                                            5 years straight line 
     Motor vehicles                                                                   Over the term of the lease 
 
     The gain or loss arising on the disposal of an asset is determined 
      as the difference between the sale proceeds and the carrying 
      value of the asset, and is recognised in the income statement. 
 
1.7  Impairment of tangible and intangible 
      assets 
     The Directors regularly review the intangible assets for impairment 
      and provision is made if necessary. Assets that are subject to 
      amortisation are reviewed for impairment whenever events or changes 
      in circumstances indicate that the carrying amount may not be 
      recoverable. An impairment loss is recognised for the amount 
      by which the asset's carrying amount exceeds its recoverable 
      amount. The recoverable amount is the higher of as asset's fair 
      value less costs to sell and value in use. For the purposes of 
      assessing impairment, assets are grouped at the lowest levels 
      for which there are separately identifiable cash flows (cash-generating 
      units). Non-financial assets other than goodwill that suffered 
      an impairment are reviewed for possible reversal of the impairment 
      at each reporting date. 
 
1.8  Inventories 
     Inventories are stated at the lower of cost and estimated selling 
      price less costs to complete and sell. Cost is based on the first-in-first-out 
      principle. Cost comprises direct materials and, where applicable, 
      direct labour costs and those overheads that have been incurred 
      in bringing the inventories to their present location and condition. 
 
 
 
1    Accounting policies (continued) 
 
1.9  Financial instruments 
      (i) Recognition and initial measurement 
       Trade receivables are initially recognised when they are originated. 
       All other financial assets and financial liabilities are initially 
       recognised when the Company becomes a part to the contractual 
       provisions of the instrument. 
 
       A financial asset (unless it is a trade receivable with a 
       significant financing component) or financial liability is 
       initially measured at fair value plus, for an item not at 
       fair value through profit or loss ("FVTPL"), transaction costs 
       that are directly attributable to its acquisition or issue. 
       A trade receivable without a significant financing component 
       is initially measured at the transaction price. 
 
       (ii) Classification and subsequent measurement 
       Financial assets 
 
       (a) Classification 
       On initial recognition, a financial asset is classified as 
       measured at: amortised cost or FVTPL. 
 
       Financial assets are not reclassified subsequently to their 
       initial recognition unless the Company changes its business 
       model for managing financial assets in which case all affect 
       financial assets are reclassified on the first day of the 
       first reporting period following the change in the business 
       model. 
 
       A financial asset is measured at amortised cost if it meets 
       both of the following conditions: 
        *    It is held within a business model whose objective is 
             to hold assets to collect contractual cash flows; and 
 
 
        *    Its contractual terms give rise on specific dates to 
             cash flows that are solely payments of principal and 
             interest on the principal amount outstanding. 
 
 
 
       Investments in associates accounted for using the equity method 
       and subsidiaries are carried at cost less impairment. 
 
1    Accounting policies (continued) 
 
1.9  Financial instruments (continued) 
     Cash and cash equivalents 
      Cash and cash equivalents comprise cash balances and call 
      deposits. Bank overdrafts that are repayable on demand and 
      form an integral part of the Company's cash management are 
      included as a component of cash and cash equivalents for the 
      purpose only of the cash flow statement. 
     (b) Subsequent measurement and gains and losses 
 
 
      Financial assets at amortised cost - These assets are subsequently 
      measured at amortised cost using the effective interest method. 
      The amortised cost is reduced by impairment losses. Interest 
      income, foreign exchange gains and losses and impairment are 
      recognised in profit or loss. Any gain or loss on derecognition 
      is recognised in profit or loss. 
     Financial liabilities and equity 
 
      Financial instruments issued by the Company are treated as 
      equity only to the extent that they meet the following two 
      conditions: 
 
      (a) they include no contractual obligations upon the Company 
      to deliver cash or other financial assets or to exchange financial 
      assets or financial liabilities with another party under conditions 
      that are potentially unfavourable to the company; and 
 
      (b) where the instrument will or may be settled in the Company's 
      own equity instruments, it is either a non-derivative that 
      includes no obligation to deliver a variable number of the 
      Company's own equity instruments or is a derivative that will 
      be settled by the Company's exchanging a fixed amount of cash 
      or other financial assets for a fixed number of its own equity 
      instruments. 
 
1    Accounting policies (continued) 
 
1.9  Financial instruments (continued) 
 
     To the extent that this definition is not met, the proceeds 
      of issue are classified as a financial liability. Where the 
      instrument so classified takes the legal form of the Company's 
      own shares, the amounts presented in these financial statements 
      for called up share capital and share premium account exclude 
      amounts in relation to those shares. 
 
      Financial liabilities are classified as measured at amortised 
      cost or FVTPL. A financial liability is classified as at FVTPL 
      if it is classified as held-for-trading, it is a derivative 
      or it is designated as such on initial recognition. Financial 
      liabilities at FVTPL are measured at fair value and net gains 
      and losses, including any interest expense, are recognised 
      in profit or loss. Other financial liabilities are subsequently 
      measured at amortised cost using the effective interest method. 
      Interest expense and foreign exchange gains and losses are 
      recognised in profit or loss. Any gain or loss on derecognition 
      is also recognised in profit or loss. 
 
      Where a financial instrument that contains both equity and 
      financial liability components exists these components are 
      separated and accounted for individually under the above policy. 
 
      (iii) Impairment 
     The Group recognises loss allowances for expected credit losses 
      (ECLs) on financial assets measured at amortised cost. 
 
      The Group measures loss allowances at an amount equal to lifetime 
      ECL, except for other debt securities and bank balances for 
      which credit risk (i.e. the risk of default occurring over 
      the expected life of the financial instrument) has not increased 
      significantly since initial recognition, which are measured 
      as 12-month ECL. 
 
      Loss allowances for trade receivables and contract assets 
      are always measured at an amount equal to lifetime ECL. 
 
      When determining whether the credit risk of a financial asset 
      has increased significantly since initial recognition and 
      when estimating ECL, the Group considers reasonable and supportable 
      information that is relevant and available without undue cost 
      or effort. This includes both quantitative and qualitative 
      information and analysis, based on the company's historical 
      experience and informed credit assessment and including forward-looking 
      information. 
 
 
 
1    Accounting policies (continued) 
 
1.9    Financial instruments (continued) 
        The Group considers a financial asset to be in default when: 
          *    the borrower is unlikely to pay its credit 
               obligations to the Company in full, without recourse 
               by the Company to actions such as realising security 
               (if any is held); or 
 
 
          *    the financial asset is more than 120 days past due. 
 
 
 
 
         Lifetime ECLs are the ECLs that result from all possible default 
         events over the expected life of a financial instrument. 
 
         12-month ECLs are the portion of ECLs that result from default 
         events that are possible within the 12 months after the reporting 
         date (or a shorter period if the expected life of the instrument 
         is less than 12 months). 
 
         The maximum period considered when estimating ECLs is the maximum 
         contractual period over which the Group is exposed to credit 
         risk. 
       Measurement of ECLs 
        ECLs are a probability-weighted estimate of credit losses. Credit 
        losses are measured as the present value of all cash shortfalls 
        (i.e. the difference between the cash flows due to the entity 
        in accordance with the contract and the cash flows that the Group 
        expects to receive). ECLs are discounted at the effective interest 
        rate of the financial asset. 
       Credit-impaired financial assets 
        At each reporting date, the Group assesses whether financial 
        assets carried at amortised cost are credit-impaired. A financial 
        asset is 'credit-impaired' when one or more events that have 
        a detrimental impact on the estimated future cash flows of the 
        financial asset have occurred. 
 
         Write-offs 
         The gross carrying amount of a financial asset is written off 
         (either partially or in full) to the extent that there is no 
         realistic prospect of recovery. 
 
 
 
 
 
1     Accounting policies (continued) 
1.10  Taxation 
      The tax expense represents the sum of the tax currently payable 
       and deferred tax. 
 
      Current tax 
      The tax currently payable is based on taxable profit for the 
       year. Taxable profit differs from net profit as reported in the 
       income statement because it excludes items of income or expense 
       that are taxable or deductible in other years and it further 
       excludes items that are never taxable or deductible. The company's 
       liability for current tax is calculated using tax rates that 
       have been enacted or substantively enacted by the reporting end 
       date. The current tax charge includes any research and development 
       tax credits claimed by the Company. 
 
       R&D tax credits are accounted for by reference to IAS 12. 
 
      Deferred tax 
      Deferred tax is the tax expected to be payable or recoverable 
       on differences between the carrying amounts of assets and liabilities 
       in the financial statements and the corresponding tax bases used 
       in the computation of taxable profit, and is accounted for using 
       the balance sheet liability method. Deferred tax liabilities 
       are generally recognised for all taxable temporary differences 
       and deferred tax assets are recognised to the extent that it 
       is probable that taxable profits will be available against which 
       deductible temporary differences can be utilised. Such assets 
       and liabilities are not recognised if the temporary difference 
       arises from goodwill or from the initial recognition of other 
       assets and liabilities in a transaction that affects neither 
       the tax profit nor the accounting profit. 
       Deferred tax liabilities are recognised for taxable temporary 
       differences arising on investments in subsidiaries and associates, 
       and interest in joint ventures, except where the Company is able 
       to control the reversal of the temporary difference and it is 
       probable that the temporary difference will not reverse in the 
       foreseeable future. 
       The carrying amount of deferred tax assets is reviewed at each 
       reporting end date and reduced to the extent that it is no longer 
       probable that sufficient taxable profits will be available to 
       allow all or part of the asset to be recovered. 
       Deferred tax is calculated at the tax rates that are expected 
       to apply in the period when the liability is settled or the asset 
       is realised based on the tax rates that have been enacted or 
       substantively enacted by the end of the reporting period. Deferred 
       tax is charged or credited to profit or loss, except when it 
       relates to items charged or credited directly to equity, in which 
       case the deferred tax is also dealt with in equity. 
       Deferred tax assets and liabilities are offset when the company 
       has a legally enforceable right to offset current tax assets 
       against current tax liabilities and when they relate to income 
       taxes levied by the same taxation authority and the Company intends 
       to settle its current tax assets and liabilities on a net basis. 
 
 
1     Accounting policies (continued) 
 
1.11  Employee benefits 
      The costs of short-term employee benefits are recognised as a 
       liability and an expense, unless those costs are required to 
       be recognised as part of the cost of inventories or non-current 
       assets. 
       The cost of any unused holiday entitlement is recognised in the 
       period in which the employee's services are received. 
       Termination benefits are recognised immediately as an expense 
       when the group is demonstrably committed to terminate the employment 
       of an employee or to provide termination benefits. 
 
1.12  Retirement benefits 
      Payments to defined contribution retirement benefit schemes are 
       charged as an expense as they fall due. 
 
1.13  Share-based payments 
      The Company has applied the requirements of IFRS 2 Share-Based 
       Payments. 
       Unapproved share option scheme 
       The Company has operated an unapproved share option scheme for 
       executive Directors, senior management and certain employees. 
       This scheme was used for any options awarded prior to 28 September 
       2017. 
 
 
1     Accounting policies (continued) 
 
      Long-Term Incentive Plan ('LTIP') 
       In 2017, the Company established a LTIP to incentivise the Executives 
       to deliver long-term value creation for shareholders and ensure 
       alignment with shareholder interest. Awards are made annually 
       and are subject to continued service and challenging performance 
       conditions usually over a three year period. The performance 
       conditions are reviewed on an annual basis to ensure they remain 
       appropriate and are currently based on increasing shareholder 
       value. Awards are generally structured as nil cost options with 
       a seven year lift after vesting. 
       Other than in exceptional circumstances, an award to an Executive 
       would be up to 100% of salary in any one year and would be granted 
       subject to achieving challenging performance conditions set at 
       the date of the grant. A percentage of the award will vest for 
       'Threshold' performance with full vesting taking place for equalling 
       or exceeding the performance 'Target'. In between the Threshold 
       and Target there may be pro rata vesting. The Remuneration Committee 
       retains the ability to amend the performance conditions for future 
       grants to ensure that such grants achieve the stated purpose. 
       The LTIP was adopted by the Board of Directors of Eden on 28 
       September 2017. 
       Where share options are awarded to employees, the fair value 
       of the options at the date of grant is charged to the Statement 
       of Profit or Loss and Other Comprehensive Income over the vesting 
       period. Non-market vesting conditions are taken into account 
       by adjusting the number of equity instruments expected to vest 
       at each reporting date so that ultimately the cumulative amount 
       recognised over the vesting period is based on the number of 
       options that eventually vest. Market vesting conditions are factored 
       into the fair value of the options granted, as long as other 
       vesting conditions are satisfied. The cumulative expense is not 
       adjusted for failure to achieve a market vesting condition. 
       Where the terms and conditions of options are modified before 
       they vest, the increase in fair value of the options, measured 
       immediately before and after the modification is also charged 
       to the Statement of Profit or Loss and Other Comprehensive Income 
       over the remaining vesting period. 
 
       In April 2021, the Company adopted a new LTIP which replaced 
       the once described above. Details of the new LTIP can be found 
       in the Remuneration Committee Report. 
 
1.14  Leases 
      At inception, the group assesses whether a contract is, or contains, 
       a lease within the scope of IFRS 16. A contract is, or contains, 
       a lease if the contract conveys the right to control the use 
       of an identified asset for a period of time in exchange for consideration. 
       Where a tangible asset is acquired through a lease, the group 
       recognises a right-of-use asset and a lease liability at the 
       lease commencement date. Right-of-use assets are included within 
       property, plant and equipment, apart from those that meet the 
       definition of investment property. 
 
 
1     Accounting policies (continued) 
 
      The right-of-use asset is initially measured at cost, which comprises 
       the initial amount of the lease liability adjusted for any lease 
       payments made at or before the commencement date plus any initial 
       direct costs and an estimate of the cost of obligations to dismantle, 
       remove, refurbish or restore the underlying asset and the site 
       on which it is located, less any lease incentives received. 
       The right-of-use asset is subsequently depreciated using the 
       straight-line method from the commencement date to the earlier 
       of the end of the useful life of the right-of-use asset or the 
       end of the lease term. The estimated useful lives of right-of-use 
       assets are determined on the same basis as those of other property, 
       plant and equipment. The right-of-use asset is periodically reduced 
       by impairment losses, if any, and adjusted for certain remeasurements 
       of the lease liability. 
 
      The lease liability is initially measured at the present value 
       of the lease payments that are unpaid at the commencement date, 
       discounted using the interest rate implicit in the lease or, 
       if that rate cannot be readily determined, the group's incremental 
       borrowing rate. Lease payments included in the measurement of 
       the lease liability comprise fixed payments, variable lease payments 
       that depend on an index or a rate, amounts expected to be payable 
       under a residual value guarantee, and the cost of any options 
       that the group is reasonably certain to exercise, such as the 
       exercise price under a purchase option, lease payments in an 
       optional renewal period, or penalties for early termination of 
       a lease. 
 
      The lease liability is measured at amortised cost using the effective 
       interest method. It is remeasured when there is a change in: 
       future lease payments arising from a change in an index or rate; 
       the group's estimate of the amount expected to be payable under 
       a residual value guarantee; or the group's assessment of whether 
       it will exercise a purchase, extension or termination option. 
       When the lease liability is remeasured in this way, a corresponding 
       adjustment is made to the carrying amount of the right-of-use 
       asset, or is recorded in profit or loss if the carrying amount 
       of the right-of-use asset has been reduced to zero. 
 
      The group has elected not to recognise right-of-use assets and 
       lease liabilities for short-term leases of machinery that have 
       a lease term of 12 months or less, or for leases of low-value 
       assets including IT equipment. The payments associated with these 
       leases are recognised in profit or loss on a straight-line basis 
       over the lease term. 
 
1.15  Grants 
      Government grants are recognised when there is reasonable assurance 
       that the grant conditions will be met and the grants will be 
       received. 
 
1.16  Foreign exchange 
      Transactions in currencies other than pounds sterling are recorded 
       at the rates of exchange prevailing at the dates of the transactions. 
       At each reporting end date, monetary assets and liabilities that 
       are denominated in foreign currencies are retranslated at the 
       rates prevailing on the reporting end date. Gains and losses 
       arising on translation are included in the income statement for 
       the period. 
       Whilst the majority of the Company's revenue is in Euros, the 
       Company also incurs a significant level of expenditure in that 
       currency. As such, the Company does not currently use any hedging 
       facilities and instead chooses to keep some of its cash at the 
       bank in Euros. 
 
 
1       Accounting policies (continued) 
 
1.17    Research and development 
              Expenditure on research activities is recognised as an expense 
               in the period in which it is incurred. 
               An internally generated intangible asset arising from the Company's 
               development activities is recognised only is all the following 
               conditions are met: 
                *    the project is technically and commercially feasible; 
 
 
                *    an asset is created that can be identified; 
 
 
                *    the Company intends to complete the asset and use or 
                     sell it and has the ability to do so; 
 
 
                *    it is probable that the asset created will generate 
                     future economic benefits; 
 
 
                *    the development cost of the asset can be measured 
                     reliably; and 
 
 
                *    there are sufficient resources available to complete 
                     the project. 
 
 
               Internally-generated intangible assets are amortised on a straight-line 
               basis over their useful lives. Where no internally-generated 
               intangible asset can be recognised, development expenditure is 
               recognised as an expense in the period in which it is incurred. 
 
1.18    Defined contribution plan 
        A defined contribution plan is a post-employment benefit plan 
         under which the company pays fixed contributions into a separate 
         entity and will have no legal or constructive obligation to pay 
         further amounts. Obligations for contributions to defined contribution 
         pension plans are recognised as an expense in the income statement 
         in the periods during which services are rendered by employees. 
 
1.19    Financial risk management 
        The Company's activities expose it to a variety of financial 
         risks: market risks (including currency risk and interest rate 
         risks), credit risk and liquidity risk. Risk management focuses 
         on minimising any potential adverse effect on the Company's financial 
         performance and is carried out under policies approved by the 
         Board of Directors. 
 
2     Adoption of new and revised standards and changes in accounting 
       policies 
 
 
 

(a) New standards, amendments and interpretations

The following new standards, amendments and interpretations have been adopted by the Group for the first time for the financial year beginning on 1 January 2020:

-- Amendments to IFRS 9 'Financial Instruments', IAS 39 'Financial Instruments: Recognition and Measurement' and IFRS 7 'Financial Instruments.

-- Amendments to IAS 1 'Presentation of financial statements' and IAS 8 'Accounting policies, changes in accounting estimates and errors' which are intended to make the definition of material easier to understand.

   --     Amendments to references to the 'Conceptual framework' in IFRS standards. 

The adoption of these standards, amendments and interpretations has not had a material impact on the financial statements of the Group or parent company.

 
2  Adoption of new and revised standards and changes in accounting 
    policies (continued) 
 

(b) New standards, amendments and interpretations issued but not effective and not adopted early

A number of new standards, amendments to standards and interpretations which are set out below are effective for annual periods beginning after 1 January 2020 and have not been applied in preparing these consolidated financial statements.

-- Amendment to IFRS 3 'Business combinations' to update references to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

-- Amendments to IFRS 9 'Financial Instruments', IAS 39 'Financial Instruments: Recognition and Measurement', IFRS 7 'Financial Instruments: Disclosures, IFRS 4 'Insurance Contracts', IFRS 16 'Leases' related to interest rate benchmark reform (phase two) and the issues that arise from the implementation of the reforms, including the replacement of one benchmark with an alternative one.

-- Amendment to IFRS 16 'Leases' which provides an optional practical expedient for lessees from assessing whether a rent concession related to COVID-19 is a lease modification.

-- IFRS 17 'Insurance contracts' which establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 'Insurance Contracts'

-- Amendments to IAS 1 'Presentation of financial statements' on classification of liabilities which is intended to clarify that liabilities are classified as either current or non-current depending upon the rights that exist at the end of the reporting period.

-- Amendments to IAS 16 'Property, plant and equipment' to prohibit the deduction from cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use with any such sales and related cost recognised in profit or loss.

-- Amendments to IAS 37 'Provisions, contingent liabilities and contingent assets' to specify which costs a company includes when assessing whether a contract will be loss making.

-- Annual improvements to make minor amendments to IFRS 1 'First-time adoption of IFRS', IFRS 9 'Financial Instruments', IAS 41 'Agriculture' and amendments to the illustrative examples accompanying IFRS 16 'Leases'.

The Directors anticipate that at the time of this report none of the new standards, amendments to standards and interpretations are expected to have a material effect on the financial statements of the Group or parent company.

 
3  Critical accounting estimates and judgements 
 
         The Company makes estimates and assumptions concerning the future. 
         The resulting accounting estimates will, by definition, seldom 
         equal the related actual results. The estimates and assumptions 
         that have a significant risk to the carrying amounts of assets 
         and liabilities within the next financial year are discussed 
         below: 
         Capitalised development costs and Intellectual property 
         The Directors have exercised a judgement that the development 
         costs incurred meet the criteria in IAS 38 Intangible Assets 
         for capitalisation. In making this judgement, the directors 
         considered the following key factors: 
 
          *    The availability of the necessary financial resources 
               and hence the ability of the Company to continue as a 
               going concern. 
 
 
          *    The assumptions surrounding the perceived market 
               sizes for the products and the achievable market 
               share for the Company. 
 
 
          *    The successful conclusion of commercial arrangements, 
               which serves as an indicator as to the likely success 
               of the projects and, as such, any need to potential 
               impairment. 
 
 
          *    The level of upfront, milestone and royalty receipts, 
               which also serves as a guide to the net present value 
               of the assets and whether any impairment is required. 
 
 
         Going concern 
         The Directors have considered the ability of the Company to 
         continue as a going concern and this is considered to be a significant 
         judgement made by the Directors in preparing the financial statements. 
         The ability of the Company to continue as a going concern is 
         ultimately dependent upon the amount and timing of cash flows 
         arising from the exploitation of the Company's intellectual 
         property and the availability of existing and/or additional 
         funding to meet the short term needs of the business until the 
         commercialisation of the Company's portfolio is reached. The 
         Directors consider it is appropriate for the financial statements 
         to be prepared on a going concern basis based on the estimates 
         they have made. 
         Associate 
         A judgement has been made that Eden exerts significant influence 
         on TerpeneTech (UK) such that it is an associate company and, 
         as such, adoption of equity accounting is appropriate. 
         COVID-19 
         The Company has made accounting judgements and estimates based 
         on there being minimal impact of COVID-19 on the business in 
         the long term. Clearly, this is still a degree of uncertainty 
         as to exactly how and if the business could be impacted and 
         the Directors will continue to monitor the situation closely. 
 
 
 
 
4                                                          Revenue and Segmental Information 
 
                                                           IFRS 8 requires operating segments to be reported in a 
                                                           manner 
                                                           consistent with the internal reporting provided to the 
                                                           chief operating 
                                                           decision-maker. The chief operating decision-maker, who is 
                                                           responsible 
                                                           for the resource allocation and assessing performance of 
                                                           the operating 
                                                           segments has been identified as the Executive Directors as 
                                                           they 
                                                           are primarily responsible for the allocation of the 
                                                           resources 
                                                           to segments and the assessment of performance of the 
                                                           segments. 
                                                           The Executive Directors monitor and then assess the 
                                                           performance 
                                                           of segments based on product type and geographical area 
                                                           using 
                                                           a measure of adjusted EBITDA. This is the result of the 
                                                           segment 
                                                           after excluding the share-based payment charges, other 
                                                           operating 
                                                           income and the amortisation of intangibles. These items, 
                                                           together 
                                                           with interest income and expense are not allocated to a 
                                                           specific 
                                                           segment. 
The segment information for the year ended 31 December 2020 
is 
as follows: 
 
 
 
                                    Agrochemicals   Consumer    Animal       Total 
                                                     products    health 
                                   --------------  ----------  --------  ------------ 
 Revenue                                 GBP           GBP        GBP         GBP 
                                   --------------  ----------  --------  ------------ 
 Milestone payments                    27,523           -          -        27,523 
                                   --------------  ----------  --------  ------------ 
 R & D charges                          7,660         8,551        -        16,211 
                                   --------------  ----------  --------  ------------ 
 Royalties                             180,801       27,919        -        208,720 
                                   --------------  ----------  --------  ------------ 
 Product sales                        1,116,534         -          -       1,116,534 
                                   --------------  ----------  --------  ------------ 
 Total revenue                        1,332,518      36,470        -       1,368,988 
                                   --------------  ----------  --------  ------------ 
 EBITDA                              (1,528,934)     36,470        -      (1,492,464) 
                                   --------------  ----------  --------  ------------ 
 Share Based Payments                 (120,380)         -          -       (120,380) 
                                   --------------  ----------  --------  ------------ 
 Adjusted EBITDA                     (1,649,314)     36,470        -      (1,612,844) 
                                   --------------  ----------  --------  ------------ 
 Amortisation                         (539,535)     (13,274)       -       (552,809) 
                                   --------------  ----------  --------  ------------ 
 Depreciation                         (70,039)          -          -       (70,039) 
                                   --------------  ----------  --------  ------------ 
 Finance costs, foreign exchange 
  and investment revenues              17,433           -          -        17,433 
                                   --------------  ----------  --------  ------------ 
 Impairment of investment 
  in associate                        (299,521)         -          -       (299,521) 
                                   --------------  ----------  --------  ------------ 
 Income Tax                            285,108          -          -        285,108 
                                   --------------  ----------  --------  ------------ 
 Share of Associate's loss            (30,352)          -          -       (30,352) 
                                   --------------  ----------  --------  ------------ 
 (Loss)/Profit for the Year          (2,286,220)     23,196        -      (2,263,024) 
                                   --------------  ----------  --------  ------------ 
 Total Assets                        16,804,893      119,471       -      16,924,364 
                                   --------------  ----------  --------  ------------ 
 Total assets includes: 
                                   --------------  ----------  --------  ------------ 
 Additions to Non-Current 
  Assets                              2,319,566         -          -       2,319,566 
                                   --------------  ----------  --------  ------------ 
 Total Liabilities                    1,915,322      80,093        -       1,995,415 
                                   --------------  ----------  --------  ------------ 
 

Please note the Consumer products segment was previously referred to as Human health and biocides.

   4   Revenue and Segmental Information 

The segment information for the year ended 31 December 2019 (restated - see note 35) is as follows:

 
                                    Agrochemicals   Consumer    Animal       Total 
                                                     products    health 
                                   --------------  ----------  --------  ------------ 
 Revenue                                 GBP           GBP        GBP         GBP 
                                   --------------  ----------  --------  ------------ 
 Milestone payments                    348,260          -          -        348,260 
                                   --------------  ----------  --------  ------------ 
 R & D charges                            -           6,089        -         6,089 
                                   --------------  ----------  --------  ------------ 
 Royalties                             17,241        24,730                 41,971 
                                   --------------  ----------  --------  ------------ 
 Product sales                        1,429,181         -          -       1,429,181 
                                   --------------  ----------  --------  ------------ 
 Total revenue                        1,794,682      30,819        -       1,825,501 
                                   --------------  ----------  --------  ------------ 
 EBITDA                               (660,331)      30,819        -       (629,512) 
                                   --------------  ----------  --------  ------------ 
 Share Based Payments                 (209,295)         -          -       (209,295) 
                                   --------------  ----------  --------  ------------ 
 Adjusted EBITDA                      (869,626)      30,819                (838,807) 
                                   --------------  ----------  --------  ------------ 
 Amortisation                         (496,732)         -          -       (496,732) 
                                   --------------  ----------  --------  ------------ 
 Depreciation                         (22,077)          -          -       (22,077) 
                                   --------------  ----------  --------  ------------ 
 Finance costs, foreign exchange 
  and investment revenues             (80,756)          -          -       (80,756) 
                                   --------------  ----------  --------  ------------ 
 Income Tax                            347,036          -          -        347,036 
                                   --------------  ----------  --------  ------------ 
 Share of Associate's loss            (41,001)          -          -       (41,001) 
                                   --------------  ----------  --------  ------------ 
 (Loss)/Profit for the Year          (1,163,156)     30,819        -      (1,132,337) 
                                   --------------  ----------  --------  ------------ 
 Total Assets                         8,732,026      132,743       -       8,864,769 
                                   --------------  ----------  --------  ------------ 
 Total assets includes: 
                                   --------------  ----------  --------  ------------ 
 Additions to Non-Current 
  Assets                              1,122,979         -          -       1,122,979 
                                   --------------  ----------  --------  ------------ 
 Total Liabilities                    1,409,083      108,012       -       1,517,095 
                                   --------------  ----------  --------  ------------ 
 
 
                                                                        2020  2019 (restated) 
                                                                         GBP              GBP 
 Revenue analysed by geographical market 
 UK                                                                   16,211            6,089 
 Europe                                                            1,352,777        1,819,412 
 
 
 
                                                                   1,368,988        1,825,501 
 
 
 For details of the restatement of 2019 figures, please refer to 
  note 35. 
 
 
 
5    Operating profit 
                                                                                               2020        2019 
                                                                                                GBP         GBP 
     Operating loss for the year is stated after charging/(crediting): 
 Government grants                                                                          (7,601)           - 
 Fees payable to the company's auditor for 
  the audit of the company's financial statements                                            40,000      28,976 
 
 Depreciation of right-of-use assets (included 
  within administrative expenses)                                                            57,346      22,077 
 Impairment of investment in associate                                                      299,521           - 
 Amortisation of intangible assets                                                          552,809     496,732 
 Share-based payments                                                                       120,380     209,295 
 
 
 
         Government grants related to amounts received in respect of the Coronavirus 
          Job Retention Scheme. 
6    Employees 
 
     The average monthly number of persons (including directors) employed 
      by the group during the year was: 
                                                                                               2020        2019 
                                                                                             Number      Number 
 
 Management                                                                                       4           4 
 Operational                                                                                      7           3 
 
 
                                                                                                 11           7 
 
 
 
       Their aggregate remuneration comprised: 
                                                                                               2020        2019 
                                                                                                GBP         GBP 
 
 Wages and salaries                                                                       1,104,400     969,487 
 Social security costs                                                                      131,158      68,994 
 Pension costs                                                                               80,452      27,151 
 Share based payment charge                                                                  94,176     110,743 
 
 
 
                                                                                          1,410,186   1,176,375 
 
 
 
 
 
7             Directors' remuneration 
                                                                    2020               2019 
                                                                     GBP                GBP 
 
              Remuneration for qualifying services               618,350            485,215 
              Company pension contributions to defined 
               contribution 
               schemes                                            28,990             26,355 
              Non-executive Directors' fees                       78,333             75,000 
              Share based payment charge relating to all 
               Directors                                          94,176            110,743 
 
 
 
                                                                 819,849            697,313 
 
 
 
              The number of directors for whom retirement benefits are accruing 
               under defined contribution schemes amounted to 2 (2019 - 2). 
 
              The number of directors who are entitled to receive shares under 
               long term incentive schemes during the year is 2 (2019 - 2). 
 
              Remuneration disclosed above includes the following amounts paid 
               to the highest paid director: 
                                                                    2020               2019 
                                                                     GBP                GBP 
              Remuneration for qualifying services               366,602            287,376 
 
 
 
              The Executive Directors are considered to also be the key management 
               personnel of the company and group. Details of directors' share 
               options can be found in the Remuneration Committee Report. 
 2020              Salary      Bonus       Fees    Pension   Share Based              Total 
                                                                Payments 
                      GBP        GBP        GBP        GBP           GBP                GBP 
 A Abrey          180,000     88,200          -     12,538        39,872            320,610 
 S Smith          235,000    115,150          -     16,452        54,304            420,906 
 R Cridland             -          -     36,665          -             -             36,665 
 L van der 
  Broek                 -          -     41,667          -             -             41,667 
                  415,000    203,350     78,332     28,990        94,176            819,848 
 
 2019              Salary      Bonus       Fees    Pension   Share Based              Total 
                                                                Payments 
                      GBP        GBP        GBP        GBP           GBP                GBP 
 A Abrey          165,000     47,644          -     11,550        48,751            272,945 
 S Smith          211,500     61,071          -     14,805        61,992            349,368 
 R Cridland             -          -     35,000          -             -             35,000 
 L van der 
  Broek                 -          -     40,000          -             -             40,000 
                  376,500    108,715     75,000     26,355       110,743            697,313 
 
 
0            Income tax income 
                                                                          2020         2019 
                                                                           GBP          GBP 
             Current tax 
 UK corporation tax on profits for the current 
  period                                                             (285,108)       (268,777) 
 Adjustments in respect of prior periods                                     -        (78,259) 
 
 
 
 Total UK current tax                                                (285,108)       (347,036) 
 
 
 
8              Investment income 
                                                                          2020         2019 
                                                                           GBP          GBP 
               Interest income 
               Bank deposits                                             5,725          807 
 
 
 
               Total interest income for financial assets that are not held 
                at fair value through profit or loss is GBP5,725 (2019: GBP807). 
 
9              Finance costs and foreign exchange 
               (gains)/losses 
                                                                          2020         2019 
                                                                           GBP          GBP 
 
               Interest on lease liabilities                            23,550        7,053 
               Interest on bank overdrafts and loans                       450        1,344 
 
 
 
         Finance costs                                                  24,000        8,397 
 
 
               Exchange differences on working capital               (39,498)        44,475 
               Effect of exchange rate fluctuations on 
                cash                                                     3,792       28,691 
 
 
 
         Exchange gains and losses                                    (35,706)       73,166 
 
 
 
 
 
 
 
10   Income tax income (continued) 
     The charge for the year can be reconciled to the loss per the 
      income statement as follows: 
 
                                                                                       2020          2019 
                                                                                        GBP           GBP 
 
 Loss                                                                           (2,548,132)     (1,479,373) 
 
 
 Expected tax credit based on a corporation 
  tax rate of 19% (2019: 19.00%)                                                  (484,145)       (281,081) 
 
 Expenses not deductible for tax purposes                                            88,498        55,868 
 Surrender of tax losses for R&D tax credit 
  refund                                                                             88,481        83,414 
 Adjustment in respect of prior years                                                     -        (78,259) 
 Ineligible fixed asset differences                                                  32,067        83,217 
 Additional deduction for R&D expenditure                                         (211,159)       (199,065) 
 Deferred tax not recognised                                                        201,150        (11,130) 
 
 
 
 Taxation credit for the year                                                     (285,108)       (347,036) 
 
 
 
 The March 2020 Budget announced that a corporation tax rate of 
  19% would continue to apply with effect from 1 April 2020, and 
  this change was substantively enacted on 17 March 2020. The March 
  2021 Budget announced that a corporation tax rate of 25% would 
  apply with effect from 1 April 2023. This was substantively enacted 
  on 24 May 2021. As this change was not substantively enacted 
  at the balance sheet date, it has not been reflected in the measurement 
  of deferred tax balances at the period end. 
  The taxation credit for the year represents the research and 
  development credit for the year ended 31 December 2020. 
 
  Deferred Tax 
 
  In the year, a deferred tax liability in respect of fixed asset 
  temporary differences of GBP803,322 has been recognised. This 
  has been offset fully by release of deferred tax asset from trading 
  losses brought forward, resulting in a GBPnil deferred tax balance 
  in the Statement of Financial Position. 
 
  The losses carried forward, after the above offset, for which 
  no deferred tax asset has been recognised, amount to approximately 
  GBP22,379,505 (2019: GBP23,088,756). 
  The unprovided deferred tax asset of GBP4,265,891 (2019: GBP3,408,686) 
  arises principally in respect of trading losses. It has been 
  calculated at 19% (2019: 17%) and has not been recognised due 
  to the uncertainty of timing of future profits against which 
  it may be realised. 
 
 
 
11   Earnings per share 
                                                                                   2020          2019 
                                                                                           (restated) 
                                                                                    GBP           GBP 
 Weighted average number of ordinary shares 
  for diluted earnings per share                                            344,629,577   208,244,667 
 
 
 
     Earnings (all attributable to equity shareholders of the company) 
 
 Loss for the period                                                        (2,270,347)     (1,144,703) 
 
 
 
 Basic earnings per share                                                       (0.66p)         (0.55p) 
 Diluted earnings per share                                                     (0.66p)         (0.55p) 
 
 Basic earnings per share is calculated by dividing the earnings 
  attributable to ordinary shareholders by the weighted average 
  number of ordinary shares outstanding during the period. 
 
  Diluted earnings per share is calculated using the weighted average 
  number of shares adjusted to assume the conversion of all dilutive 
  potential ordinary shares. 
 
  There were no dilutive potential ordinary shares at the year end. 
 
  For details of the restatement, please refer to note 1.1. 
 
 
 
12   Intangible assets 
 
     Group 
 
                                          Licences  Development  Intellectual       Total 
                                    and trademarks        costs      property 
                                               GBP          GBP           GBP         GBP 
     Cost 
 At 1 January 2019                         447,351    4,209,089     8,970,627  13,627,067 
 Additions                                       -      850,532       210,697   1,061,229 
 
 
 
 At 31 December 2019                       447,351    5,059,621     9,181,324  14,688,296 
 Additions                                   1,545    1,564,785       134,957   1,701,287 
 
 
 
 At 31 December 2020                       448,896    6,624,406     9,316,281  16,389,583 
 
 
 
     Amortisation and impairment 
 At 1 January 2019                         411,855    1,948,254     6,250,450   8,610,559 
 Charge for the year                        25,896      231,077       239,759     496,732 
 
 
 
 At 31 December 2019                       437,751    2,179,331     6,490,209   9,107,291 
 Charge for the year                        11,145      315,192       226,472     552,809 
 
 
 
 At 31 December 2020                       448,896    2,494,523     6,716,681   9,660,100 
 
 
 
     Carrying amount 
 At 31 December 2020                             -    4,129,883     2,599,600   6,729,483 
 
 
 
 At 31 December 2019                         9,600    2,880,290     2,691,115   5,581,005 
 
 
 
 
 
12   Intangible assets 
 
     Company 
 
                                                               Licences  Development  Intellectual       Total 
                                                         and trademarks        costs      property 
                                                                    GBP          GBP           GBP         GBP 
     Cost 
 At 1 January 2019                                              447,351    4,209,089     8,970,627  13,627,067 
 Additions                                                            -      850,532        77,954     928,486 
 
 
 
 At 31 December 2019                                            447,351    5,059,621     9,048,581  14,555,553 
 Additions                                                        1,545    1,564,785       134,957   1,701,287 
 
 
 
 At 31 December 2020                                            448,896    6,624,406     9,183,538  16,256,840 
 
 
 
     Amortisation and impairment 
 At 1 January 2019                                              411,855    1,948,254     6,250,450   8,610,559 
 Charge for the year                                             25,896      231,077       239,759     496,732 
 
 
 
 At 31 December 2019                                            437,751    2,179,331     6,490,209   9,107,291 
 Charge for the year                                             11,145      315,192       213,198     539,535 
 
 
 
 At 31 December 2020                                            448,896    2,494,523     6,703,407   9,646,826 
 
 
 
     Carrying amount 
 At 31 December 2020                                                  -    4,129,883     2,480,131   6,610,014 
 
 
 
 At 31 December 2019                                              9,600    2,880,290     2,558,372   5,448,262 
 
 
 
 Intellectual property represents intellectual property in relation 
  to use of encapsulated terpenes in agrochemicals. The remaining 
  useful economic life of that asset is 10 years. 
  An annual impairment review is undertaken by the Board of Directors. 
  The Directors have considered the progress of the business in 
  the current year, including a review of the potential market 
  for its products, the progress the Company has made in registering 
  its products and other key commercial factors to inform the review. 
 
 
 
12  Intangible assets (continued) 
 
    Of GBP6,610,014 carrying amount of intangible assets, GBP6,490,543 
     has been allocated to the Agrochemicals CGU. The remaining intangible 
     assets have been allocated to the Consumer products CGU for which 
     no impairment indicators have been identified. The Agrochemicals 
     CGU has been tested for impairment as it is the only CGU with 
     intangible assets not yet available for use. 
 
     The Directors have prepared a discounted cash-flow forecast, 
     based on product sales forecasts including those provided by 
     the Company's commercial partners, and have taken into account 
     the market potential for Eden's products and technologies using 
     third party market data that Eden has acquired licences to. 
 
     The forecast covers a period of 10 years, with no terminal value, 
     reflecting the useful economic life of the patent in respect 
     of the underlying technology. Financial forecasts for 2021 are 
     based on the approved annual budget. Financial forecasts for 
     2022-2028 are based on the approved long-term plan. Financial 
     forecasts for 2029-2030 are extrapolated based on the long-term 
     growth rate. 
 
     The estimated recoverable amount of the CGU exceeded its carrying 
     amount by GBP22.1m and based on the review carried out management 
     is satisfied that intangible assets are not impaired. 
 
     As set out in the Strategic Report, the business is in a critical 
     phase of its development as the development of products is transitioned 
     to revenue generation. The value of the CGU is supported by forecasts 
     of continued revenue growth of existing products and the successful 
     introduction and growth of sales of products currently under 
     development. 
 
     The key assumptions of the forecast are the future cash flows, 
     driven primarily by level of sales, and the discount rate. The 
     discount rate is estimated using pre-tax rates that reflect current 
     market assessments of the time value of money and the risk specific 
     to the CGU. The rate used was 10% (2019: 10%). 
 
     The impact of increasing the discount rate by 3.5%, which is 
     considered a reasonably possible change, would be a decrease 
     in the recoverable amount by GBP6.8m. The discount rate would 
     have to increase to 28.7% to reduce the headroom to GBPnil which 
     is not considered reasonably possible. 
 
     The average annual growth rate has been assumed at 48% (2019: 
     64%), reflecting the latest forecasts based on information provided 
     by customers and own market analysis. The rate stands at 84% 
     up to 2025, reflecting commercialisation of new products in the 
     period, reducing to 11% from 2026 onwards. 
 
     A reduction in growth from year 6 onwards to the long-term growth 
     rate, which is considered a reasonably possible change, would 
     reduce the recoverable amount by GBP10.5m. 
 
     The same level of reduction in recoverable amount would be observed 
     if revenue generation was delayed by 1 year for each product 
     currently under development. 
 
     Sales would have to reduce by over 42% to reduce headroom to 
     GBPnil which is not considered reasonably possible. 
 
 
13   Property, plant and equipment 
 
     Consolidated and Company 
                                                                                    Fixtures    Total 
                                                                                and fittings 
                                                                                         GBP      GBP 
     Cost 
     At 1 January 2019                                                                     -        - 
 
 
 
     At 31 December 2019 (restated 
      - see note 1.1)                                                                      -        - 
 Additions - owned                                                                   200,758  200,758 
 
 
 
 At 31 December 2020                                                                 200,758  200,758 
 
 
 
     Accumulated depreciation and impairment 
     At 1 January 2019                                                                     -        - 
 
 
 
     At 31 December 2019 (restated 
      - see note 1.1)                                                                      -        - 
 Charge for the year                                                                  12,693   12,693 
 
 
 
 At 31 December 2020                                                                  12,693   12,693 
 
 
 
 
 At 31 December 2020                                                                 188,065  188,065 
 
 
 
 At 31 December 2019 (restated 
  - see note 1.1)                                                                          -        - 
 
 
 
 
 
14   Right-of-Use Assets 
 
     Consolidated and Company 
 
                                                 Land and    Motor vehicles      Total 
                                                buildings 
                                                      GBP               GBP        GBP 
     Cost 
     At 1 January 2019                                  -                 -          - 
 Recognition of right-of-use asset 
  on initial application of IFRS 
  16                                               78,668            35,865    114,533 
 
 
 
 At 31 December 2019 (restated - 
  see note 1.1)                                    78,668            35,865    114,533 
 Additions                                        417,521                 -    417,521 
 Disposals                                       (78,668)                 -     (78,668) 
 
 
 
 At 31 December 2020                              417,521            35,865    453,386 
 
 
 
     Accumulated depreciation and impairment 
     At 1 January 2019                                  -                 -          - 
 Foreign currency adjustments                      26,223             4,483     30,706 
 Charge for the year                               13,111             8,966     22,077 
 
 
 
 At 31 December 2019 (restated - 
  see note 1.1)                                    39,334            13,449     52,783 
 Charge for the year                               48,380             8,966     57,346 
 Eliminated on disposal                          (51,353)                 -     (51,353) 
 
 
 
 At 31 December 2020                               36,361            22,415     58,776 
 
 
 
     Carrying amount 
 At 31 December 2020                              381,160            13,450    394,610 
 
 
 
 At 31 December 2019 (restated - 
  see note 1.1)                                    39,334            22,416     61,750 
 
 
 
 
 
 
15     Investments in associates 
                                             Current                     Non-current 
                                              2020      2019                 2020          2019 
                                               GBP       GBP                  GBP           GBP 
 
 Investments in associates                       -         -              419,865       749,738 
 
 
 
        Details of the group's associates at 31 December 
         2020 are as follows: 
 
        Name of       Registered    Principal       Class of        % Held 
        undertaking    office       activities 
                                                    shares         Direct  Voting 
                                                     held 
 
                                    Research and 
                                     experimental 
                                     development 
        TerpeneTech   United         on 
         (UK)          Kingdom       biotechnology  Ordinary        29.90   29.90 
                                                                             2020          2019 
                                                                                       (restate 
                                                                                     (Restated) 
                                                                              GBP           GBP 
         Non-current assets                                               502,954       565,306 
 
         Current assets                                                   237,697       209,880 
         Non-current liabilities                                         (98,806)      (98,806) 
         Current liabilities                                            (213,670)     (195,415) 
                                                              -------------------  ------------ 
         Net assets (100%)                                                428,175       480,965 
 
         Company's share of net assets                                    151,352       167,136 
         Separable intangible assets                                      155,385       169,953 
         Goodwill                                                         412,649       412,649 
         Impairment of investment in associate                          (299,521)             - 
                                                              -------------------  ------------ 
         Carrying value of interest in associate                          419,865       749,738 
 
         Revenue                                                          279,185       247,304 
         100% of loss after tax                                          (52,790)      (88,404) 
         29.9% of loss after tax                                         (15,784)      (26,433) 
         Amortisation of separable intangible                            (14,568)      (14,568) 
                                                              -------------------  ------------ 
         Company's share of loss including amortisation 
          of separable intangible asset                                  (30,352)      (41,001) 
         For details of the restatement of 2019 figures, 
          please refer to note 35. 
 
         The associate is included in the Agrochemicals 
          operating segment. 
15      Investments in associates (continued) 
 
         TerpeneTech Limited's ("TerpeneTech (UK)") registered office is 
         Kemp House, 152 City Road, London, EC1V 2NX and its principal 
         place of business is 3 rue de Commandant Charcot, 22410, St Quay 
         Portrieux, France. 
 
         The Directors have considered the progress of the business in 
         the current year, including a review of the potential market for 
         its products, the progress TerpeneTech (UK) has made in registering 
         its products and other key commercial factors to determine whether 
         any indicators of impairment exist. As a result of identification 
         of indicators of impairment, an impairment review of the investment 
         in TerpeneTech (UK) was undertaken by the Board of Directors. 
 
         The Directors have used discounted cash-flow forecasts, based 
         on product sales forecasts provided by TerpeneTech (UK), and have 
         taken into account the market potential for those products. These 
         forecasts cover a 10-year period, with no terminal value, in line 
         with the patent of the underlying technology. 
 
         The key assumptions of the forecast are the growth rate and the 
         discount rate. The discount rate is estimated using pre-tax rates 
         that reflect current market assessments of the time value of money 
         and the risk specific to the asset. The rate used was 15% (2019: 
         20%). The reduction in the discount rate reflects the reduction 
         in uncertainty as compared to the year ended 31 December 2019 
         as there is greater clarity over impacts of COVID-19 and one of 
         the products has significantly progressed towards commercialisation. 
 
         Based on the review the Directors have carried out, it has been 
         determined that the Investment is impaired and, as such, an impairment 
         charge of GBP299,521 has been recognised. 
 
         The impairment is primarily due to the impact of COVID-19 which 
         resulted in a delay in the launch of the head-lice product and 
         which significantly impacted the head-lice product market and, 
         consequently, the forecast level of sales. This impact is exacerbated 
         by the limited forecast period. 
 
         An increase in the discount rate of 2.5% would result in an increase 
         in impairment of GBP50,000. 
 
         The growth rates are derived from discussions with the Company's 
         commercial partner, TerpeneTech (UK), as described above. 
 
         The average annual growth rate has been assumed at 32% (2019: 
         37%). The majority of this growth relates to the head-lice product 
         and arises in the first 5 years of the forecast as the market 
         position is built up, following the launch. The average annual 
         growth rate of existing business stands at only 4% (2019: 4%). 
         Only inflationary growth has been assumed across the entire forecast 
         after year 5. 
 
         An annual reduction of 20% in head-lice product sales over the 
         forecast period would increase impairment by GBP80,000. 
 
         The Directors have also considered whether any reasonable change 
         in assumptions would lead to a material change in impairment recognised 
         and are satisfied that this is not the case. 
 
         As investing in companies, such as TerpeneTech (UK) , is not representative 
         of Eden's normal operating activities, the impairment charge has 
         been shown on the Consolidated Income Statement after Operating 
         Loss. 
 
 
 
 
16     Subsidiaries 
 
       Details of the company's subsidiaries at 31 December 2020 are as 
        follows: 
 
       Name of undertaking    Registered office       Principal activities    Class of          % Held 
                                                                              shares held   Direct  Voting 
 
 TerpeneTech 
  (Ireland)                                       Sale of biocide 
  Limited                Republic of Ireland       products                Ordinary          50.00   50.00 
 
       TerpeneTech Limited ("TerpeneTech (Ireland)", whose registered 
        office is 108 Q House, Furze Road, Sandyford, Dublin, Ireland, 
        was incorporated on 15 January 2019 and is jointly owned by both 
        Eden Research Plc and TerpeneTech (UK), the company's associate. 
        Eden has the right to appoint a director as chairperson who will 
        have a casting vote, enabling the Group to exercise control over 
        the Board of Directors in the absence of an equivalent right for 
        TerpeneTech (UK). Eden owns 500 ordinary shares in TerpeneTech 
        (Ireland). 
        Non-controlling interests 
       The following table summarises the information relating to the Group's 
        subsidiary with material non-controlling interest, before intra-group 
        eliminations: 
                                                                                      2020            2019 
                                                                                                (Restated) 
                                                                                       GBP             GBP 
         NCI percentage                                                                50%             50% 
 
         Non-current assets                                                        119,471         132,743 
         Current assets                                                                  -               - 
         Non-current liabilities                                                         -               - 
         Current liabilities                                                      (80,093)       (108,013) 
                                                                               -----------  -------------- 
         Net assets (100%)                                                          39,378          24,730 
 
 
         Carrying amount of NCI 
         Revenue                                                                    27,919          24,730 
         Profit after tax                                                           14,647          24,730 
         OCI                                                                             -               - 
                                                                               -----------  -------------- 
         Total comprehensive income                                                 14,647          24,730 
 
         Cash flows from operating activities                                            -               - 
         Cashflows form investing activities                                             -               - 
         Cashflows from financing activities                                             -               - 
                                                                               -----------  -------------- 
         Net increase / (decrease) in cash and cash equivalents                          -               - 
                                                                               -----------  -------------- 
 
         Dividends paid to non-controlling interests                                     -               - 
                                                                               -----------  -------------- 
 
           For details of the restatement of 2019 figures, 
           please refer to note 35. 
 
 
 
17   Inventories 
                                                                                             Group and company 
                                                                                               2020       2019 
                                                                                                GBP        GBP 
 
 Finished goods                                                                             224,422     68,423 
 
 
 
18   Trade and other receivables 
                                                                Group                       Company 
                                                                 2020       2019               2020       2019 
                                                                  GBP        GBP                GBP        GBP 
 
 Trade receivables                                            909,452  1,345,648            909,452  1,345,648 
 VAT recoverable                                              242,187    127,089            242,187    127,089 
 Other receivables                                             57,619      4,694             57,619      4,694 
 Prepayments and accrued income                               187,050    155,661            235,050    155,661 
 
 
 
                                                            1,396,308  1,633,092          1,444,308  1,633,092 
 
 
 
 Trade receivables disclosed above are measured at amortised cost. 
  The directors consider that the carrying amount of trade and 
  other receivables approximates their fair value. 
 
 
 
19   Trade and other payables 
                                                               Group                    Company 
                                                          2020  2019 (restated)        2020        2019 
                                                           GBP              GBP         GBP         GBP 
     Current 
 Trade payables                                        794,439          870,563     794,439     870,563 
 Accruals                                              250,017          283,380     250,017     283,380 
 Social security and other 
  taxation                                              43,186           26,399      43,186      26,399 
 Other payables                                        367,313          168,246     287,220      60,234 
 
 
 
                                                     1,454,955        1,348,588   1,374,862   1,240,576 
 
 
 
     Non-current 
 Other payables (note 22, 'Xinova 
  liability')                                          125,212           99,008     125,212      99,088 
 
 
 
                                                       125,212           99,008     125,212      99,008 
 
 
 
 
20   Lease liabilities 
                                                                                       2020        2019 
     Maturity analysis                                                                  GBP         GBP 
 
 Within one year                                                                    117,204      27,097 
 In two to five years                                                               385,388      51,919 
 
 
 
 Total undiscounted liabilities                                                     502,592      79,016 
 Future finance charges and other adjustments                                      (87,344)       (9,517) 
 
 
 
 Lease liabilities in the financial statements                                      415,248      69,499 
 
 
 
 
 
20   Lease liabilities (continued) 
 
     Lease liabilities are classified based on the amounts that are 
      expected to be settled within the next 12 months and after more 
      than 12 months from the reporting date, as follows: 
 
                                                                                   2020    2019 
                                                                                    GBP     GBP 
 
 Current liabilities                                                             84,350  22,812 
 Non-current liabilities                                                        330,898  46,687 
 
 
 
                                                                                415,248  69,499 
 
 
 
                                                                                   2020    2019 
     Amounts recognised in profit or loss include                                   GBP     GBP 
      the following: 
 
 Interest on lease liabilities                                                   23,550   7,053 
 
 
 
 Other leasing information is included in note 29. 
 
21   Retirement benefit schemes 
 
 Defined contribution schemes 
 The group operates a defined contribution pension scheme for 
  all qualifying employees. The assets of the scheme are held separately 
  from those of the group in an independently administered fund. 
 
 The total costs charged to income in respect of defined contribution 
  plans is GBP61,799 (2019 - GBP27,151). 
 
 
 
22   Share-based payment transactions 
     Unapproved option scheme 
     Eden Research Plc operates an unapproved option scheme for executive 
      directors, senior management and certain employees. 
                                                 Number of share options               Weighted average 
                                                                                     exercise price (pence) 
                                                              2020         2019                     2020  2019 
 
 Outstanding at 1 January                                1,050,000    3,400,000                       13    11 
     Granted during the year                                     -            -                        -     - 
     Exercised during the 
      year                                                       -            -                        -     - 
 Lapsed during the year                                          -  (2,350,000)                        -    13 
 
 
 
 Exercisable at 31 December                              1,050,000    1,050,000                       13    13 
 
 
 
 The options outstanding at 31 December 2020 had an exercise 
  price of 13p (2019: 13p) and their weighted average contractual 
  life was 0.1 years (2019: 1.6 years). None of the options have 
  vesting conditions. 
 
  The share-based payment charge in respect of the unapproved 
  option scheme for the year was GBPnil (2019: GBPnil). The weighted 
  average fair value of each option granted during 2020 was GBPnil 
  (2019: GBPnil). 
 
 
 
22   Share-based payment transactions (continued) 
     Long-Term Incentive Plan ("LTIP") 
 
      Eden Research Plc operates an option scheme for executive directors, 
      senior management and certain employees under a LTIP which it 
      adopted in 2017. On 28 June 2019, 5,891,111 shares under the 
      LTIP scheme were awarded to the Chief Executive Officer and 
      the Chief Financial Officer. 
 
      Details of the existing LTIP can be found in the Remuneration 
      Committee Report . A new LTIP scheme has been put in place in 
      April 2021, of which further details can also be found in the 
      Remuneration Committee Report . 
     The share-based payment charge for the year ended 31 December 
      2017 and subsequent years is set out as follows: 
     Financial year ended 31 December                                 Share based payment charge GBP 
     2017                                                                                     27,210 
     2018                                                                                     85,372 
     2019                                                                                    110,743 
     2020                                                                                     94,176 
     2021                                                                                     51,909 
     2022                                                                                     16,959 
                                                                                             386,369 
     The following information is relevant in the determination of 
      the fair value of options granted under the LTIP operated by 
      Eden Research Plc, representing a mix of approved and unapproved 
      issues. 
                                                              2016 Award    2017 Award    2018 Award 
     Grant date                                               28/09/2017    28/06/2019    28/06/2019 
     Number of awards                                          2,108,000     2,868,889     3,022,222 
     Share price                                                   0.125         0.115         0.115 
     Exercise price                                               GBPnil        GBPnil        GBPnil 
     Expected dividend yield                                          -%            -%            -% 
     Expected volatility                                          73.20%        50.82%        50.82% 
     Risk free rate                                                0.80%        0.614%        0.614% 
                                                                      80            80            80 
     Vesting period                                              3 years       2 years       3 years 
     Expected Life (from date                                   10 years       2 years       3 years 
      of grant) 
 
     For those options and warrants which were not granted under 
      the Company's LTIP, fair value is measured using the Black-Scholes 
      model. The expected life used in the model has been adjusted, 
      based on management's best estimate, for the effects of non-transferability, 
      exercise restrictions and behavioural conditions. 
 
     For those options which were granted under the Company's LTIP, 
      Monte Carlo techniques were used to simulate future share price 
      movements of the Company to assess the likelihood of the performance 
      criteria being met and the fair value of the awards upon vesting. 
      The modelling calculates many scenarios in order to estimate 
      the overall fair value based on the average value where awards 
      vest. 
 
 
 
 
22  Share-based payment transactions (continued) 
 
 
       Warrants 
                                             Number of share options            Weighted average 
                                                                              exercise price (pence) 
                                                  2020              2019                     2020  2019 
 Outstanding at 1 January                    2,989,865         2,400,000                       19    20 
 Granted during the year                             -         2,589,865                        -    18 
 Exercised during the year                           -                 -                        -     - 
 Lapsed during the year                              -       (2,000,000)                        -    11 
 
 Exercisable at 31 December                2,989,865           2,989,865                       19    19 
 
 
 The exercise price of warrants outstanding at the end of the 
  year ranged between 12p and 30p (2019: 12p and 30p) and their 
  weighted average contractual life was 1.4 years (2019: 2.5 years.) 
  None of the warrants have vesting conditions. 
 
  The share-based payment charge for the year was GBPnil (2019: 
  GBP98,553). The weighted average fair value of each warrant 
  granted during the year was GBPnil (2019: 18p). 
 
  Xinova liability 
 
  In September 2015, the Company entered into a Collaboration 
  and licence agreement with Invention Development Management 
  Company LLC (part of Intellectual Ventures, now called Xinova 
  LLC). As part of this agreement, upon successful completion 
  of a number of different tasks, Xinova will be entitled to a 
  payment which is calculated using a percentage (initially 3.17%) 
  of the fully diluted equity value, reduced by cash and cash 
  equivalents, of the Company on the date on which payment becomes 
  due which is expected to be 30 September 2025. This has been 
  accounted for as a cash-settled share-based payment under IFRS 
  2. 
 
  An amount of GBP67,462, being the estimated fair value of the 
  liability due to Xinova, was recognised during 2016 and included 
  as a non-current liability, as disclosed in note 19 to the accounts. 
  It is not believed that the value of the services provided by 
  Xinova can be reliably measured, and so this amount was calculated 
  based on the Company's market capitalisation at 31 December 
  2016, adjusted to reflect the percentage of work completed by 
  Xinova at that date based on a pre-determined schedule of tasks. 
 
  A further charge of GBP26,204 was made in the year (2019: GBP31,546), 
  reflecting the increase in work delivered by Xinova and in the 
  equity value, partially offset by reduction in the applicable 
  payment % as a result of the additional equity financing raised 
 
  At the year end, an amount of GBP125,212 (2019: GBP99,008) was 
  owed to Xinova and is shown in note 18 as non-current other 
  liabilities. 
 
 
 
23    Share capital 
                                                           2020             2019        2020        2019 
      Ordinary share capital                             Number           Number         GBP         GBP 
      Issued and fully paid 
 Ordinary shares of 1p each                         380,340,229      207,189,337   3,803,402   2,071,893 
 
      On 18 March 2020, the Company issued 86,182,500 ordinary shares 
       at 6p each for a total consideration of GBP5,170,950 before directly 
       attributable costs. 
 
       On 19 March 2020, the Company issued 86,968,392 ordinary shares 
       at 6p each for a total consideration of GBP5,218,104 before directly 
       attributable costs. 
 
       Share issue costs of GBP638,931 were incurred and have been charged 
       to the share premium account. 
24    Share premium account 
                                                                                        2020        2019 
                                                                                         GBP         GBP 
 
 At the beginning of the year                                                     31,289,915  31,289,915 
 Issue of new shares                                                               8,018,614           - 
 
 
 
 At the end of the year                                                           39,308,529  31,289,915 
 
 
 
25    Warrant reserve 
                                                                                                     GBP 
 
 Balance at 1 January 2020                                                                         335,739 
 Share-based payment expense in respect of options granted 
  in prior years                                                                                    94,176 
 
 
 
 Balance at 31 December 2020                                                                       429,915 
 
 
 
      The warrant reserve represents the fair value of share options and 
       warrants grants, and not exercised or lapsed, in accordance with 
       the requirements of IFRS 2 Share Based Payments. 
 
 
 
 
26       Merger reserve 
                                                                               2020         2019 
                                                                                GBP          GBP 
 
 At the beginning and end of the year                                    10,209,673   10,209,673 
 
 
 
         The merger reserve arose on historical acquisitions of subsidiary 
          undertakings for which merger relief was permitted under the 
          Companies Act 2006. 
27       Non-controlling interest 
                                                                               2020         2019 
                                                                                GBP          GBP 
 Non-controlling interest                                                    19,689       12,366 
 
 
         The non-controlling interest arose from Eden Research Plc's 50% 
          share in TerpeneTech (Ireland) Limited. 
28       Other interest-bearing loans and borrowings - Group and Company 
         Changes in liabilities, arising from financing activities are presented 
          below: 
                                                                               2020         2019 
                                                                                GBP          GBP 
 
 Balance as at 1 January                                                     69,499            - 
 Recognised on implementation of IFRS 16                                          -       90,414 
 
         Changes from financing cashflows 
 Payment of lease liabilities                                              (44,457)     (20,916) 
 
 Total changes from financing cashflows                                    (44,457)     (20,916) 
 
         Other changes 
 New leases 
  Inter                                                                     417,521            - 
 Surrender of lease                                                        (27,315)            - 
 
 Total other changes                                                        390,206            - 
 
 Balance as at 31 December                                                  415,248       69,499 
 
 
 
 
 
29       Other leasing information 
         Amounts recognised in profit or loss as an expense during the 
          period in respect of lease arrangements are as follows: 
 
                                                                               2020         2019 
                                                                                GBP          GBP 
 
 Expense relating to leases of low-value assets                                 334       19,516 
 
 
 
         Set out below are the future cash outflows to which the lessee 
          is exposed to that are reflected in the measurement of lease 
          liabilities: 
 
                                                                               2020         2019 
         Land and buildings                                                     GBP          GBP 
 
 Within one year                                                             74,783       14,040 
 Between two and five years                                                 325,794       32,015 
 
 
 
                                                                            400,577       46,055 
 
 
 
                                                                               2020         2019 
         Leases apart from land and                                             GBP          GBP 
          buildings 
 
 Within one year                                                              9,567        8,772 
 Between two and five years                                                   5,104       14,671 
 
 
 
                                                                             14,671       23,443 
 
 
 
 The Group holds three leases, for two properties and a vehicle. 
  All leases have fixed lease repayments and remaining terms of 
  4.5 years for the properties and 1.5 years for the vehicle. 
  The incremental borrowing rate applied to lease liabilities recognised 
  in the statement of financial position at the date of initial 
  application of IFRS 16 was 8.71%. 
 
 Information relating to lease liabilities is included in note 
  20. 
 
30       Capital risk management 
 
 The group is not subject to any externally imposed capital requirements. 
 
 
 
 
31  Related party transactions 
 
    Remuneration of key management personnel 
    The remuneration of key management personnel, including directors, 
     is set out below in aggregate for each of the categories specified 
     in IAS 24 Related Party Disclosures. 
 
 
    Group 
     During the year, Eden invoiced its associate, TerpeneTech (UK), 
     GBP8,551 for R&D charges (2019: GBP6,089). 
     Also, during the year Eden paid GBP6,362 to TerpeneTech (UK) (2019: 
     received GBP12,731) for monies received by Eden on behalf of TerpeneTech 
     (UK) from one of TerpeneTech (UK)'s customers. 
     At the year end, a net amount of GBP128,983 was due from TerpeneTech 
     (UK) (2019: GBP122,661) to Eden. This amount is included within 
     Trade and Other Receivables. 
     In 2019, TerpeneTech (UK) sold an intangible asset to TerpeneTech 
     (Ireland) for GBP132,743. 
     At the year end, a net amount of GBP80,093 (2019: GBP108,012) 
     was due from TerpeneTech (Ireland) to TerpeneTech (UK). It represents 
     the amount due in respect of the intangible asset above, reduced 
     by fees receivable in respect of sales. This amount is included 
     within Trade and Other Payables. 
     Company 
     During the year, Eden invoiced its associate, TerpeneTech (UK), 
     GBP8,551 for R&D charges (2019: GBP6,089). 
     Also, during the year Eden paid GBP6,362 to TerpeneTech (UK) (2019: 
     received GBP12,731) for monies received by Eden on behalf of TerpeneTech 
     (UK) from one of TerpeneTech (UK)'s customers. 
     Further, at year end, GBP48,000 has been accrued in respect of 
     management recharges from Eden to TerpeneTech (Ireland) (2019: 
     GBPnil). This amount is included within the Company Trade and 
     Other Receivables. 
 
     At the year end, a net amount of GBP128,983 was due from TerpeneTech 
     (UK) (2019: GBP122,661). This amount is included within Trade 
     and Other Receivables. 
 
 
32   Financial risk management 
 
     Credit risk 
                                                              2020             2019 
                                                               GBP              GBP 
 Cash and cash equivalents                               7,286,503          501,984 
 Trade receivables                                       1,396,308        1,345,648 
                                                         8,682,811        1,847,632 
 
 The average credit period for sales of goods and services is 242 
  days (2019 [restated]: 269). No interest is charged on overdue 
  trade receivables. At 31 December 2020, trade receivables of GBP200,840 
  (2019: GBP523,967) were past due. During the year the Company 
  wrote off bad debts in the amount of GBPnil (2019: GBPnil). 
  Trade receivables of GBP791,581 (2019: GBP1,002,763) at the reporting 
  date were held in Euros and GBP104,265 (2019: GBP112,540) were 
  held in USD. 
  The Company's policy is to recognise loss allowances for expected 
  credit losses (ECLs) on financial assets measured at amortised 
  cost. The Group measures loss allowances for trade receivables 
  at an amount equal to lifetime ECL. When determining whether the 
  credit risk of a financial asset has increased significantly since 
  initial recognition and when estimating ECL, the Group considered 
  reasonable and supportable information that is relevant and available 
  without undue cost of effect. This includes both quantitative 
  and qualitative information and analysis, based on the Group's 
  historical experience and information credit assessment and including 
  forward-looking information. 
  The largest trade debtor at the year end is a well-established, 
  profitable business and long-term customer of the Company with 
  whom Eden has had no issue of collecting debts due before and 
  does not expect to have any going forward. In addition, TerpeneTech 
  (UK), Eden's associate company, owed gross GBP174,952 (2019: GBP182,984) 
  to Eden at the year-end. 
  TerpeneTech (UK), is a cash-positive business, albeit in its infancy, 
  with good shareholder support and, again, Eden has had no issue 
  of collecting debtors due from TerpeneTech (UK) before and does 
  not expect to have any going forward. 
  Considering these factors, the directors' consider the ECL to 
  be immaterial. 
 
 
32   Financial risk management (continued) 
 
     Credit risk 
                                                          2020          2019 
                                                           GBP           GBP 
 Trade payables                                        794,439       870,563 
 Other payables                                        367,313       168,246 
 Other taxes and social security                        43,186        26,399 
 Accruals and deferred income                          250,017       283,380 
                                                     1,454,955     1,348,588 
 The carrying amount of trade payables approximates their fair 
  value. 
 The average credit period on purchases of goods is 85 days. No 
  interest is charged on trade payables. The Company has policies 
  in place to ensure that trade payables are paid within the credit 
  timeframe or as otherwise agreed. 
 
 
 
 
 Maturity of financial liabilities (excluding lease liabilities) 
 The maturity profile of the group's financial liabilities at 31 
  December 2020 was as follows: 
 
                                                                2020           2019 
                                                                 GBP            GBP 
 In one year or less, or on demand                         1,454,955      1,348,588 
 Over one year                                               125,212         99,008 
                                                           1,580,167      1,447,596 
 
 Liquidity risk is managed by regular monitoring of the Company's 
  level of cash and cash equivalents, debtor and creditor management 
  and expected future cash flows. See note 1 for further details 
  on the going concern position of the Company. For details of lease 
  liabilities, see notes 20 and 29. 
 Market price risk 
 The company's exposure to market price risk comprises currency 
  risk exposure. It monitors this exposure primarily through a process 
  known as sensitivity analysis. This involves estimating the effect 
  on results before tax over various periods of a range of possible 
  changes in exchange rates. The sensitivity analysis model used 
  for this purpose makes no assumptions about any interrelationships 
  between such rates or about the way in which such changes may 
  affect the economies involved. As a consequence, figures derived 
  from the Company's sensitivity analysis model should be used in 
  conjunction with other information about the Company's risk profile. 
     The Company's policy towards currency risk is to eliminate all exposures 
      that will impact on reported results as soon as they arise. This 
      is reflected in the sensitivity analysis, which estimates that five 
      and ten percentage point increases in the value of sterling against 
      all other currencies would have had minimal impact on results before 
      tax . 
 
 
 
 
32  Financial risk management (continued) 
    Capital risk management 
 
    The primary objective of the Company's capital management is 
     to ensure that it maintains healthy capital ratios in order to 
     support its business and maximise shareholder value. 
 
    The Company seeks to enhance shareholder value by capturing business 
     opportunities as they develop. To achieve this goal, the Company 
     maintains sufficient capital to support its business. 
 
    The Company manages its capital structure and makes adjustments 
     to it in light of changes in economic conditions. 
 
    The Company looks to maintain a reasonable debt position by repaying 
     debt or issuing equity, as and when it is deemed to be required. 
 
    No changes were made in the objectives, policies or processes 
     for managing capital during the years ended 31 December 2020 
     and 31 December 2019. 
 
    The Company monitors capital using a gearing ratio, which is 
     net debt divided by total capital plus net debt. The Company's 
     policy is to keep the gearing ratio below 10% (2019: below 10%). 
     The Company includes within net debt, any interest bearing loans 
     and borrowings (none in current or prior year), any loans from 
     a venture partner (none in the current or prior year), trade 
     and other payables, less cash and cash equivalents. 
 
 
33   Cash absorbed by operations 
     Consolidated 
                                                           2020                2019 
                                                                         (restated) 
                                                            GBP                 GBP 
 
 Loss for the year after tax                        (2,263,024)         (1,132,337) 
 
     Adjustments for: 
 Taxation charged/(credited)                          (285,108)           (347,036) 
 Finance costs                                           24,000   8,397 
 Investment income                                      (5,725)               (807) 
 Foreign exchange currency losses                         3,792              28,631 
 Amortisation and impairment of intangible 
  assets                                                552,809             496,732 
 Impairment of investment in associate                  299,521                   - 
 
 Depreciation and impairment of property, 
  plant and equipment and right-of-use assets            70,039              22,078 
 Share of associate's loss                               30,352              41,001 
 Share-based payment expense                            120,380             209,295 
 
     Movements in working capital: 
 Increase in inventories                              (155,999)            (53,767) 
 Decrease/(increase) in trade and other 
  receivables                                           236,784           (908,027) 
 (Decrease)/increase in trade and other 
  payables                                              106,367             357,351 
 
 
 
 Cash absorbed by operations                        (1,265,812)         (1,278,429) 
 
 
 
 

For details of the above restatement, please refer to note 1.1.

 
33   Cash absorbed by operations (continued) 
     Company 
                                                                 2020          2019 
                                                                         (restated) 
                                                                  GBP           GBP 
 
 Loss for the year after tax                              (2,229,669)     (1,157,068) 
 
     Adjustments for: 
 Taxation charged/(credited)                                (285,108)       (347,036) 
 Finance costs                                                 24,000         8,397 
 Investment income                                            (5,725)           (807) 
 Foreign exchange currency losses                               3,792        28,631 
 Amortisation of intangible assets                            539,535       496,732 
 Impairment of investment in associate                        299,521             - 
 
 Depreciation and impairment of property, plant 
  and equipment and right-of-use assets                        70,039        22,078 
 Share of associate's loss                                     30,352        41,001 
 Share-based payment expense                                  120,380       209,295 
 
     Movements in working capital: 
                                                            (155,999) 
 Increase in inventories                                      (155,99        (53,767) 
 Decrease/(increase) in trade and other receivables           188,784       (908,027) 
 (Decrease)/increase in trade and other payables              134,286         382,082 
 
 
 
 Cash absorbed by operations                              (1,265,812)     (1,233,954) 
 
 
 
 

For details of the above restatement, please refer to note 1.1.

 
34  Post balance sheet events 
 
 
  Long-Term Incentive Plan 
 
   In April 2021, the Company replaced its existing LTIP with a 
   new one, details of which can be found in the Remuneration Committee 
   Report. 
 
   Corteva Agriscience agreement 
 
   In May 2021, the Company signed an exclusive commercialisation, 
   supply and distribution agreement with Corteva Agriscience, 
   the fourth largest agriculture inputs company in the world. 
   Further details of this agreement can be found in the Chief 
   Executive Officer's Review. 
 
 
 
 
35  Prior Year Adjustment 
 
     Following the incorporation of TerpeneTech (Ireland) in 2019 
     the group is reorganising the roles of TerpeneTech (Ireland) 
     and TerpeneTech (UK) in the sale of geraniol and certain other 
     products. 
 
     Following communications with the FRC (refer to the Audit Committee 
     Report), the Directors have reconsidered the arrangements that 
     were in place in the prior year (and which remained in place 
     in the current year) in regard to sales made by TerpeneTech (Ireland). 
 
     The Directors have concluded that TerpeneTech (Ireland) was acting 
     as an agent in these transactions and should have recognised 
     sales of GBP24,730 being the 10% margin on the sales of geraniol 
     rather than recognising gross sales and cost of sales. As such, 
     they have restated the Group's revenue and cost of sales in the 
     prior year. 
 
     As a consequence of this restatement, revenue has been reduced 
     by GBP222,574 and cost of sales have been reduced by GBP222,574 
     in the Income Statement for the year ending 31 December 2019. 
     There was no impact on loss before or after taxation or net assets 
     and no impact on any opening balances. 
 
     As the arrangements change going forward, the Directors will 
     reconsider the revenue recognition. 
 
 
 

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