August 18th, 2017

Annual Report and Accounts 2016

Following the closure of its subsidiary Oxonica Materials Ltd. (OML) in October 2015 and the transfer of its trade to Oxonica Ltd., the Company no longer reports its accounts on a Group basis. The comparisons below show for convenience Group figures for 2015 (which represent OML and the Company) as previously reported.

Turnover for the year was £116,000 (2015: £109,000). Gross profit increased to £108,000 (2014: £101,000). After an increase in expenses to £142,000 (2015: £21,000) due mainly to the revaluation of deferred income held in US$, the operating loss was £34,000 (2015: £80,000 profit). After financial income/expenses and taxation, the loss for the year was £34,000 (2015: £80,000 profit).

Cash and cash equivalents reduced to £36,000 at the year-end (2015: £62,000).

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-2017 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.