September 22nd, 2016

Annual Report and Accounts 2015

Turnover for the year was £109,000 (2014: £116,000). Gross profit decreased to £101,000 (2014: £106,000). After a reduction in expenses to £19,000 (2014: £99,000) due mainly to the write-off of old creditor balances, the operating profit was £80,000 (2014: £7,000). After financial income/expenses and taxation, the profit for the year was £80,000 (2014: £7,000).

Cash and cash equivalents increased to £62,000 at the year-end (2014: £60,000).

The Company remains wholly dependent on revenues generated through licence agreements with Croda 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-2016 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.