Annual Report and Accounts 2014

Turnover for the year was £0.12 million (2013: £0.11 million). Gross profit increased to £0.11 million (2013: £0.10 million). After an increase in expenses to £0.10 million (2013: £0.07 million) due mainly to foreign exchange rate adjustments, the operating profit was £0.01 million (2013: £0.03 million). After financial income/expenses and taxation, the profit for the year was £0.01 million (2013: £0.03 million).

Cash and cash equivalents reduced to £0.05 million at the year-end (2013: £0.08 million).

The Company remains wholly dependent on revenues generated through licence agreements with Croda (via Oxonica Materials Limited) and BD. To date, the agreement with Croda has delivered revenues envisaged in the original agreement and Croda has guaranteed payment of minimum royalties through end-2015 in order to avoid possible cancellation of the agreement.

In contrast, the agreement with BD has yet to generate revenues of any significance. Potential receipt of royalties from the agreement with BD will depend on a lengthy period of product development, trial and evaluation.