Annual Report and Accounts 2018

Turnover for the year was £116,700 (2017: £118,235). Gross profit declined slightly to £108,611 (2017: £110,131) and the operating profit reduced to £33,710 (2017: £87,957) due primarily to adverse exchange rate movements in respect of deferred income. Cash and cash equivalents decreased to £26,575 at the year-end (2017: £38,424).

Company revenue is derived from two primary sources:

• Release of deferred income in respect of the agreement signed with BD in 2008 which is non-cash (£62.7K). There remains £305K of deferred income on the Balance Sheet.

• Revenue from the agreement signed with Croda (£54K)

The Company remains wholly dependent on revenues generated through its licence agreements with Croda and BD. Croda has guaranteed payment of minimum royalties through end-2019 in order to maintain the agreement in force.

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.