October 30th, 2012
Trading Update – October 2012
The Company’s Report and Accounts for the year-ending 31st December 2011 are now posted on the Oxonica website.
Turnover in the year was £389,000 (2010: £4.23 million) following the disposal of Oxonica Materials Inc. in July 2011. The loss before interest was £157,000 (2010: £359,000). Cash and cash equivalents reduced to £0.81 million at the year-end (2010: £1.64 million) due primarily to the return of capital payment to shareholders of 1p per share totalling £655,559. On 17 April 2012 the Company distributed a further 0.9p per share to shareholders, also in the form of a return of capital payment. The payment totalled £590,039.
As previously advised, the Board’s strategy has been to reduce overheads to a minimum so that cash available after the return of capital payments will enable the Company to continue as a going concern for several years.
This will enable the Company to see the benefits of the licence agreement with Croda, which presently contributes to but does not fully cover annual expenses, whilst awaiting potential long-term benefits deriving from the agreement with BD. In the case of the latter, our understanding, based on very limited and informal information, is that any such benefits, if they emerge at all, are at least 2 years away. Should these agreements generate significant surplus funds, the Board will consult with shareholders on the use of such funds.