Consolidated income statement

year to 31 December 2013

Continuing operations / Note / 2013 / 2012 / 2011
£ / £ / £

Revenue

/ 4 / 9,768,027 / 8,327,274 / 7,911,672
Cost of sales / (1,953,071) / (1,508,826) / (1,327,968)

Gross profit

/ 7,814,956 / 6,818,448 / 6,583,704
Administrative costs / (7,201,810) / (6,492,379) / (5,912,523)
Operating profit / 613,146 / 326,069 / 671,181
Finance income / 12,107 / 7,218 / 4,111
Finance costs
-Finance cost relating to loan notes issued including embedded derivatives / 11 / (1,695,719) / - / -
-Other finance costs / (86,580) / (84,072) / (86,802)
Total finance cost / (1,782,299) / (84,072) / (86,802)

Loss/ (profit) before tax

/ (1,157,046) / 249,215 / 588,490
Income tax / 360,098 / (46,713) / 288,845

Loss/ (profit) for the year

/ (796,948) / 202,502 / 877,335

Attributable to

the owners of the parent

/ (796,948) / 202,502 / 877,335
Loss/(earnings) per share
Basic (loss)/earnings per share / 5 / (0.36)p / 0.09p / 0.39p
Diluted (loss)/earnings per share / 5 / (0.36)p / 0.09p / 0.39p

Consolidated statement of comprehensive income

year to 31 December 2013

2013 / 2012 / 2011
£ / £ / £
Continuing operations
(Loss)/profit for the year / (796,948) / 202,502 / 877,335
Other comprehensive (loss)/income – Items that may be reclassified subsequently to profit or loss:
Exchange differences on retranslation of overseas operations / (18,338) / (124,202) / 82,149

Total comprehensive (loss) /income for the year

/ (815,286) / 78,300 / 959,484

Attributable to

the owners of the parent

/ (815,286) / 78,300 / 959,484

Consolidated statement of financial position

at 31 December 2013

Note / 2013 / 2012 / 2011
£ / £ / £
ASSETS

Non current assets

Property, plant and equipment

/ 8 / 3,788,714 / 2,692,786 / 2,102,964

Intangible fixed assets

/ 10 / 3,097,862 / 3,395,753 / 3,607,964
Deferred tax assets / 855,005 / 540,900 / 643,922
7,741,581 / 6,629,439 / 6,354,850

Current assets

Inventories / 425,638 / 367,967 / 349,780
Trade receivables / 1,500,527 / 1,199,999 / 1,095,801
Other receivables / 743,683 / 536,995 / 405,273

Cash and cash equivalents

/ 7,094,608 / 858,539 / 1,127,680
9,764,456 / 2,963,500 / 2,978,534

Total assets

/ 17,506,037 / 9,592,939 / 9,333,384

LIABILITIES

Current liabilities

Trade payables

/ 515,083 / 289,114 / 331,974

Other payables

/ 1,114,562 / 570,037 / 563,959

Obligations under finance leases

/ 315,696 / 228,765 / 81,532

Income tax

/ 1,364 / - / 7,800

Provisions

/ 59,025 / 108,100 / 149,000

Short-term borrowings

/ - / - / 150,000

Current portion of long term borrowings

/ - / 72,360 / 67,100
2,005,730 / 1,268,376 / 1,351,365

Non current liabilities

Long term borrowings

/ - / 538,493 / 614,400

Obligations under finance leases

/ 638,235 / 567,916 / 108,727

Other borrowings

/ 11 / 8,389,113 / - / -

Provisions

/ - / 58,814 / 176,155

Deferred tax liabilities

/ 158,759 / 202,606 / 265,076
9,186,107 / 1,367,829 / 1,164,358

Total liabilities

/ 11,191,837 / 2,636,205 / 2,515,723

Net assets

/ 6,314,200 / 6,956,734 / 6,817,661

EQUITY

Equity attributable to equity holders of the parent

Share capital

/ 6 / 224,341 / 223,687 / 223,687

Share premium account

/ 12,217,742 / 12,210,140 / 12,210,140

Other reserve

/ 292,566 / 128,070 / 128,070

Share based payment reserve

/ 765,383 / 765,383 / 704,610

Profit and loss account

/ (7,185,832) / (6,370,546) / (6,448,846)

Total equity

/ 6,314,200 / 6,956,734 / 6,817,661

Consolidated statement of changes in equity

year to 31 December 2013

Share capital / Share premium account / Other reserve / Share based payment reserve / Profit and loss account / Total
equity
£ / £ / £ / £ / £ / £
Balance at 1 January 2013 / 223,687 / 12,210,140 / 128,070 / 765,383 / (6,370,546) / 6,956,734
Loss for the year / - / - / - / - / (796,948) / (796,948)
Other comprehensive loss
Exchange differences on retranslation of overseas operations / - / - / - / - / (18,338) / (18,338)
Total comprehensive loss for the year / - / - / - / - / (815,286) / (815,286)
Issue of share capital
– exercise of share options / 654 / 7,602 / - / - / - / 8,256
Equity element of convertible loan note / - / - / 164,496 / - / - / 164,496
Balance at 31 December 2013 / 224,341 / 12,217,742 / 292,566 / 765,383 / (7,185,832) / 6,314,200
Share capital / Share premium account / Other reserve / Share based payment reserve / Profit and loss account / Total
equity
£ / £ / £ / £ / £ / £
Balance at 1 January 2012 / 223,687 / 12,210,140 / 128,070 / 704,610 / (6,448,846) / 6,817,661
Profit for the year / - / - / - / - / 202,502 / 202,502
Other comprehensive income/(loss)
Exchange differences on retranslation of overseas operations / - / - / - / - / (124,202) / (124,202)
Total comprehensive income for the year / - / - / - / - / 78,300 / 78,300
Share based payments transactions / - / - / - / 60,773 / - / 60,773
Balance at 31 December 2012 / 223,687 / 12,210,140 / 128,070 / 765,383 / (6,370,546) / 6,956,734
Share capital / Share premium account / Other reserve / Share based payment reserve / Profit and loss account / Total
equity
£ / £ / £ / £ / £ / £
Balance at 1 January 2011 / 223,687 / 12,210,140 / 128,070 / 561,510 / (7,408,330) / 5,715,077
Profit for the year / - / - / - / - / 877,335 / 877,335
Other comprehensive income
Exchange differences on retranslation of overseas operations / - / - / - / - / 82,149 / 82,149
Total comprehensive income for the year / - / - / - / - / 959,484 / 959,484
Share based payments transactions / - / - / - / 143,100 / - / 143,100
Balance at 31 December 2011 / 223,687 / 12,210,140 / 128,070 / 704,610 / (6,448,846) / 6,817,661

The other reserve arose on the acquisition of Cyprotex Discovery Limited by the Company in January 2002, which was accounted for as a merger. Additions in the year of £164,496 relate to the equity component of Convertible loan notes issued in the year ended 31 December 2013 (see note 11).

Consolidated statement of cash flows

year to 31 December 2013

Note / 2013 / 2012 / 2011
Cash flows from operating activities / £ / £ / £
(Loss)/profit after taxation / (796,948) / 202,502 / 877,335
Adjustments for:
Depreciation of property, plant and equipment / 646,983 / 453,777 / 363,553
Amortisation of intangible assets / 153,742 / 152,114 / 140,199
Impairment of intangibles / 135,801 / - / -
Gain on disposals of property, plant and equipment / (10,997) / (24,226) / -
Share based payment charge / - / 60,773 / 143,100
Finance income / (12,107) / (7,218) / (4,111)
Finance charge / 1,782,299 / 84,072 / 86,802
Taxation recognised in the income statement / (360,098) / 46,713 / (288,845)
Increase in trade and other receivables / (508,891) / (256,361) / (441,494)
Increase in inventories / (58,457) / (20,414) / (58,819)
Increase in trade and other payables / 629,369 / 17,910 / 263,327
Movement on provisions / (60,990) / (102,532) / -
Cash generated from operations / 1,539,706 / 607,110 / 1,081,047
Taxation paid / (6,527) / (4,246) / -

Net cash from operating activities

/ 1,533,179 / 602,864 / 1,081,047

Cash flows from investing activities

Purchase of property, plant and equipment / 9 / (1,169,165) / (291,090) / (228,844)
Expenditure on intangibles / - / (93,034) / (172,543)
Proceeds from disposal of property, plant and equipment / 11,000 / 39,500 / -
Interest received / 12,107 / 7,218 / 4,111

Net cash used in investing activities

/ (1,146,058) / (337,406) / (397,276)

Cash flows from financing activities

Interest paid / (86,580) / (84,072) / (70,019)
Proceeds from issue of share capital / 8,256 / - / -
Proceeds from loan notes / 11 / 7,000,000 / - / -
Loan note issue costs / 11 / (122,000) / - / -
Proceeds from long-term borrowings / - / - / 200,000
Repayment of long-term borrowings / (610,853) / (70,647) / (54,900)
Payment of finance lease liabilities / (288,705) / (178,282) / (105,047)
Payment of contingent consideration / (50,259) / (44,156) / (156,060)
Payment of short term borrowings / - / (150,000) / (408,695)

Net cash generated from/ (used in) financing activities

/ 5,849,859 / (527,157) / (594,721)

Net increase/ (decrease) in cash and cash equivalents

/

6,236,980

/

(261,699)

/

89,050

Exchange differences on cash and cash equivalents / (911) / (7,442) / 1,742
Cash and cash equivalents at beginning of year / 858,539 / 1,127,680 / 1,036,888
Cash and cash equivalents at end of year / 7,094,608 / 858,539 / 1,127,680