Summit Corporation plc
("Summit plc" or "the Company")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2008
Oxford, UK, 3 June 2008 - Summit Corporation plc (AIM: SUMM), a
leading UK biotechnology company, today reports its preliminary
results for the year ended 31 January 2008. These results have been
prepared in accordance with the recognition and measurement criteria
of International Financial Reporting Standards ("IFRS") as adopted
for use by the European Union.
A presentation to analysts will be held today at 10.00hrs at the
offices of Panmure Gordon, Moorgate Hall, 155 Moorgate, London EC2M
6XB. Conference call dial-in details are as follows:
UK dial: 0845 301 4080
International dial: +44 207 663 4862
Participant access code: 923077#
A copy of the presentation is available by request from
investors@summitplc.com
Summit's strategy is to generate returns for its shareholders via a
combination of early stage licensing deals from its attractive drug
pipeline and value creation from its two world-leading technology
platforms: carbohydrate chemistry and zebrafish.
Highlights of 2007/08
Progress across our high-quality drug pipeline. Initial early stage
programme deal signed
* SMT C1100 nominated as lead candidate in Duchenne muscular
dystrophy programme
* Preclinical results show SMT C1100 improves muscle strength and
function
* Positive results from Phase I clinical trial of SMT D002 targeting
acne
* $10 million programme collaboration deal signed with Evolva Biotech
for SMT 14400 in infectious diseases
Two innovative and profitable technology platforms to support the
Company's drug discovery programmes and to generate value via
collaborations and service revenues
* Acquisition of two UK biotechnology companies, Dextra and
Daniolabs, to become industry leaders in carbohydrate chemistry
and zebrafish biology technologies, respectively
* Strategic evaluation and incorporation of new assets with the aim
of creating a stronger, more focused business
* Profitable services business growing, currently counts seven of the
world's top ten pharmaceutical companies as clients
Financial summary
* Trebling of revenues to £3.0 million from services business
* Cash position of £10.1 million at 31 January 2008
Operational developments
* Consultation period entered with a view to the closure of Cambridge
facility to bring operational efficiencies, particularly in
zebrafish technologies, and long-term cost savings
Steven Lee, PhD, Chief Executive Officer of Summit, commented on the
results: "The past 18 months have seen us build a business with much
greater scale and potential. This has been achieved via a combination
of acquisitions and organic success. We have nearly completed the
integration and consolidation of our acquisitions and as a result
Summit is well placed to deliver sustainable value for shareholders
via a clearer and more focused business model. Our long-term strategy
for delivering value is through the signing of early stage licensing
deals for our drug programmes and we continue to expect important
progress on this front during the remainder of 2008."
-- ENDS --
For more information, please contact:
Summit plc
Steven Lee, PhD, Chief Executive Officer
Darren Millington, ACMA, Chief Financial Officer
Richard Pye, PhD, Investor Relations
Tel: +44 (0)1235 443951; +44 (0)7825 313476
Citigate Dewe Rogerson
Mark Swallow, PhD / David Dible / Sylvie Berrebi / Emma Palmer
Tel: +44 (0)207 638 9571; +44 (0)7903 737703
Panmure Gordon
Andrew Burnett / Rakesh Sharma (Corporate Finance)
Ashton Clanfield (Corporate Broking)
Tel: +44 (0)207 459 3600
About Summit plc
Summit plc is a leading UK biotechnology company with a broad
preclinical and clinical pipeline, two world-leading technology
platforms and an innovative business model that is expected to
generate sustainable value for investors.
Summit is developing multiple drug programmes that target unmet
medical needs from which it intends to generate value by
out-licensing attractive late preclinical or early clinical stage
programmes in return for upfront, milestone and royalty payments.
Summit uses its scientific expertise to target orphan diseases,
neuro-disorders and infectious diseases.
Underpinning Summit's drug pipeline are two innovative technology
platforms: carbohydrate chemistry and zebrafish biology. These
platforms support existing programmes and also will be the source of
future programmes to replenish Summit's drug pipeline. These
platform technologies also form the basis of the Company's profitable
service business.
The company listed on the alternative investment market (AIM) of the
London Stock Exchange in October 2004 - symbol: SUMM. Further
information about the company is available at www.summitplc.com
Chairman's Statement
Over the past 18 months, your Company has undergone considerable
growth and development. During the period, via a combination of
acquisitions and organic success, we have strengthened our drug
pipeline and confirmed Summit's world-leading position in two
innovative and valuable technology platforms that, we believe, have
the potential to make a major positive contribution to the drug
discovery and development process.
Consequently, the business is now in a strong position to capitalise
on the potential of these exciting assets and technologies and to
realise our ambition of improving the risk-reward ratio traditionally
associated with investing in the biotechnology sector. We remain
confident that Summit's approach based on early stage licensing deals
and growing service revenues will deliver sustainable value to
investors.
Growth through acquisition
All areas of the business were significantly strengthened early in
2007 following the acquisition of two UK companies, Dextra
Laboratories and Daniolabs, for a combined total of £16.5 million in
new shares.
The two companies were a synergistic fit with our existing
capabilities in carbohydrate chemistry and zebrafish biology,
respectively, and strengthened our industry-leading position in these
two technology platforms, both of which underpin the development of
our pipeline and form the basis of our profitable services business.
In addition, Summit also acquired a range of clinical, preclinical
and discovery stage programmes that enhances our existing drug
portfolio.
Following the acquisitions, a period of strategic evaluation to
assess the potential value of the new assets has taken place to
ensure the Company remains focused and efficient in its operations to
give it the maximum opportunity to deliver value for shareholders.
Targeting early stage deals
One of our key strategies for generating long-term and sustainable
value is to sign early stage licensing deals with partners in the
pharmaceutical and biotechnology industry.
This strategy has been developed to capitalise on a trend that Summit
was early to recognise, namely that the pharmaceutical industry is
increasingly signing early stage licensing deals in order to meet the
industry's urgent need to replenish its existing drug pipelines.
Equally importantly, industry data suggest that earlier stage deals
give a higher return on cumulative development costs than later stage
deals, with preclinical deals typically generating the biggest
returns using upfront and headline deal figures. Accordingly, Summit
focuses its expertise and technology resources to select a steady
stream of promising drug candidates to take through preclinical and
the first clinical stages of development with the clear target of
early out-licensing.
The Company's target is to deliver early stage deals with upfront and
near-term milestone payments that provide a several-fold return on
any investment made in the programmes; Summit will also retain an
interest in the long-term success of out-licensed programmes through
sales and royalty payments. Currently we have a number of promising
programmes at these stages of development and have intensified our
out-licensing activities accordingly.
In addition, the pharmaceutical industry continues to invest in
innovative technology platforms that can help identify new drug
candidates with the aim of improving success rates in the discovery
and development process. Increasingly the advantages and value our
two technologies can bring to the process are being recognised by the
industry. This is clearly reflected by the strong organic growth of
our service revenues. This progress increases our belief that they
represent, in their own right, an important source of long-term value
for investors.
Outlook
It is my belief that Summit has matured into a robust business with a
focused strategy that places the Company in a strong position to
deliver sustainable value for shareholders.
I recognise though that the pharmaceutical and biotechnology sector
can be a difficult area for investors. Various factors have
undermined the perceived value of the sector including a decline in
the number of new drugs reaching the market, higher regulatory
hurdles and high-profile issues with marketed products. The current
problems in the global financial markets are further exacerbating the
situation, often leading investors into more defensive stocks.
However, the need to discover and develop new medicines remains as
strong as ever with many serious and fatal diseases lacking adequate
treatment. I firmly believe Summit is a business with the expertise
and technologies capable of meeting these challenges for the benefit
of patients, and our shareholders.
The coming year will be an important and exciting time for Summit and
I look forward to reporting later in the year on continued progress
being made within our business including, most importantly, progress
towards a significant programme licensing deal.
Finally, I would like to thank all members of staff for their efforts
and dedication in helping to create a business that is capable of
fulfilling our vision of developing new medicines to treat serious
diseases.
Barry Price, PhD
Chairman
3 June 2008
Chief Executive Officer's Statement
The past 18 months has been a period of substantial growth,
development and consolidation within the business that leaves the
Company poised to deliver our vision of building significant and
sustainable value for shareholders.
Our strategy focuses on advancing multiple drug programmes in areas
of high unmet medical need to an early stage of development and
signing licensing deals with partners to further develop these
promising candidates towards the market. This approach aims to
improve the risk-reward ratio normally associated with biotechnology
companies by not exposing the business to the high costs and risks
associated with later stage Phase IIb and pivotal Phase III clinical
trials.
Underpinning our drug discovery and development capabilities and
programmes are two world-leading and innovative technology platforms
in carbohydrate chemistry and zebrafish biology. These technologies
are expected to improve the chances of success in our existing
programmes, give rise to new programmes to maintain our strong drug
pipeline, and are expected to be a long-term source of value in their
own right.
Building value
Since the beginning of 2007, we have worked hard on building a robust
business with multiple opportunities to generate value. This has been
accomplished through a strategy of focused acquisitions and solid
organic growth. The acquisition of DanioLabs in March 2007
strengthened our zebrafish platform as its technology fits
synergistically with our existing capabilities, forming the world's
largest and most sophisticated zebrafish technology platform.
Additionally, our drug pipeline was enhanced with a selection of
clinical, preclinical and discovery stage programmes that Daniolabs
had generated using its zebrafish expertise.
At the same time, we acquired Dextra Laboratories to enhance our
carbohydrate technology platform, an area that we believe will become
an important source of new pharmaceuticals. As a result of the
acquisition, Summit now has carbohydrate drug discovery and
development capabilities from the earliest stages of discovery up to
and including the production of GMP material suitable for use in
Phase II clinical trials. Following the acquisition, Dextra became
the brand name for our carbohydrates service business.
Since the completion of these acquisitions, the Company has been
focused on fully evaluating the new assets and ensuring that those
that enhance our business are integrated into our operations. The
outcome from these efforts has been to create a strong, efficient
business that is now well placed to deliver value. A key part of this
process has been to create a clearer operating structure. This has
resulted in our own research activities being split from the two
business units providing carbohydrate and zebrafish services to
pharmaceutical and biotechnology customers. It has also led to our
decision to move our zebrafish activities to Oxford and the planned
closure of the Cambridge facility that we acquired with Daniolabs.
Pipeline progress
A key component in the successful execution of our strategy of
signing early stage deals is a strong drug pipeline and 2007/08 saw
solid progress being made in this area.
In May 2007, SMT C1100 was nominated as our lead candidate for the
treatment of the fatal genetic disease Duchenne muscular dystrophy
(DMD). The selection of this lead candidate was a major achievement
within this preclinical programme and also for the Company as it
demonstrated that we can take novel academic research and transform
it, entirely in-house, into an exciting and valuable commercial
opportunity.
SMT C1100 is currently making excellent progress through preclinical
development with data being produced that shows it significantly
improves the strength and function of muscles in in vivo models. Our
plan is to conclude preclinical development towards the end of 2008
and for SMT C1100 to enter human clinical trials at the beginning of
2009.
A Phase I trial was successfully completed with our candidate SMT
D002 for the treatment of seborrhoea or excess sebum production, a
condition that is a primary cause of acne. It is also a common
problem for patients with Parkinson's disease. In March 2008, the
results from this Phase I trial met the primary endpoints and proved
statistically significant with SMT D002 suppressing levels of sebum
production by up to 90%. This new data supported an earlier Phase I
study to further enhance the value of this programme. We are now
actively seeking a commercial partner to finance the candidate's
future development.
Our second clinical programme is SMT D001, a candidate that targets
the treatment of sialorrhoea or excessive drooling in patients with
Parkinson's disease. In January 2008, this candidate entered into a
Phase IIa clinical trial in 40 patients and the results from this
trial are anticipated during 2009. A Phase I study with this
candidate indicated that SMT D001 reduces saliva production by up to
40%.
Both SMT D002 and SMT D001 were acquired as part of the Daniolabs
acquisition.
Also in our programme portfolio is the preclinical candidate SMT
14400, which is being developed for infectious diseases. This
candidate is a carbohydrate-based compound known as an imino sugar,
and is being developed in the infectious diseases area in partnership
with the Swiss company, Evolva Biotech. We are further investigating
the potential of SMT 14400 in other indications. SMT 14400 was one of
the assets that Summit acquired from MNL Pharma in late 2006.
To maintain our healthy early stage pipeline, Summit is evaluating a
range of exciting discovery stage projects from which it expects new
commercial opportunities to emerge. These projects are focused in
the Company's areas of expertise including orphan diseases,
neuro-disorders and infectious diseases. In addition, Summit expects
its unique imino sugar library, part of our carbohydrate technology
platform which came from MNL Pharma, will be a significant source of
new drug programmes. This novel carbohydrate library is currently
being assessed against a range of therapeutic indications including
lysosomal storage disorders.
Targeting early deals
Our intention is to sign licensing deals, from preclinical through to
early clinical development, with partners who have the financial
resources and the commitment to take our programmes beyond the Phase
IIa stage. This approach will allow Summit to benefit from upfront
and near-term milestone fees, which provide a sizeable return on any
investment made in a programme, while avoiding the risks and costs
associated with running Phase IIb and pivotal Phase III trials.
The type of deals Summit will seek to sign broadly fall into two
categories: major headline deals and smaller, co-development deals.
The first co-development deal
This year saw good progress being made in signing early stage
licensing deals from within our programme portfolio. In July 2007, a
$10 million co-development deal for SMT 14400 in infectious diseases
was signed with the Swiss company, Evolva Biotech. Evolva has been
granted over $50 million of funding from the Defense Threat Reduction
Agency (DTRA), a US government funded body that targets new
treatments for use against biological weapons. Evolva's remit is to
find novel candidates with the potential to protect against a range
of biological agents, including anthrax, ebola virus, and E. coli;
Evolva identified SMT 14400 as one such candidate.
Under the terms of the agreement, Summit received an upfront payment
and will be entitled to development funding for SMT 14400 while
retaining 50% ownership of the programme in a multi-billion dollar
indication. In addition we retain the exclusive rights to the product
for its use in other indications.
Summit will always look to sign creative deals with external partners
to maximise the potential of our drug pipeline and this is
highlighted through this deal.
Our challenge for the coming year is to sign a major programme
licensing deal from within our pipeline and with a focused and
experienced commercial team actively engaging with potential
partners, I am confident we can deliver on this commitment.
Technology platforms: adding value in drug discovery
Underpinning our drug discovery and development capabilities and
pipeline are our two world-leading and innovative technology
platforms, in carbohydrate chemistry and zebrafish biology. These
platforms support current programmes by helping to improve the
chances of success while they are also expected to identify future
programmes to replenish our pipeline.
Technology platforms: profitable service revenues
In addition, these two technology platforms form the basis of our
profitable services business, whereby third-party clients from the
pharmaceutical and life sciences industries can pay to access our
expertise and capabilities to enhance their own development
pipelines. In 2007/08, our service businesses generated revenues of
£3 million, three times the level of the previous year, partly
boosted by acquisitions. The growth of this business is a significant
validation of the potential that both these technologies bring to the
discovery and development of new drugs. During the year, we worked
with 30 customers, including some of the world's largest
pharmaceutical companies. As I mentioned earlier our two service
businesses have been split from our own research activities to ensure
that they are focused on delivering the revenues that we anticipate
from these world-leading technology platforms.
Service business: Carbohydrate chemistry
Dextra, our carbohydrate chemistry services business, made a sizeable
impact to our revenues for the year following its integration into
Summit. This included the signing of a royalty-paying deal with a US
healthcare company for which the Company earned $450,000 in fees and
will receive a 5% royalty on product supply from 2009. In July, our
scale-up and GMP (Good Manufacturing Practice) synthetic chemistry
laboratory became operational. This is an important new facility as
it is capable of producing high-grade material in sufficient
quantities to support clients' projects from early discovery through
to Phase II clinical trials. This facility will not only further
enhance our carbohydrate chemistry platform but will also serve to
reduce internal costs and development times by using this
manufacturing capability to advance our own drug programmes.
Services business: Zebrafish biology
In zebrafish biology, we signed a number of higher-value service
agreements with several pharma and biotech companies. This
demonstrates an increasing recognition within the industry of the
potential benefits the use of this technology can bring throughout
the early stages of drug discovery and development. We have now
engaged with seven of the world's top 10 pharmaceutical companies
with a $450,000 pilot study signed in October 2007 being our largest
zebrafish deal to date. Our challenge for the coming year is to
convert these promising early interactions into higher-value
longer-term contracts and I am pleased to report that progress is
already being made on this front.
Outlook
The coming year will be an exciting and challenging period for
Summit. Our efforts to date have been focused on building and
consolidating the infrastructure of the business following the recent
acquisitions.
Our commitment to shareholders is to build a focused business to
steadily deliver substantial value to our shareholders. A major
programme deal from our drug pipeline is our primary objective for
2008 and there are several opportunities that I believe make this
both a very realistic and achievable target. In addition, I
anticipate that our two more-focused service businesses will generate
more value through the signing of creative collaboration deals, which
will supplement the expected continued growth in service revenues, as
our pharmaceutical and biotechnology customers increasingly recognise
the considerable benefits that our two key technologies can deliver.
I would like to thank all members of staff at Summit for the
dedication and hard work that has been essential to achieve the
progress the business has made this year. Finally, I would like to
thank all Summit shareholders for their continued support and I look
forward to reporting to you in the future about our continued growth
and success.
Steven Lee, PhD
Chief Executive Officer
3 June 2008
Financial Review
Acquisitions
In March 2007, Summit completed two acquisitions that had the
immediate effect of enhancing the value of our drug pipeline with two
clinical development programmes and consolidating our position as
world leaders in two technology platforms.
DanioLabs Limited was acquired on 23 March 2007 for £15.0 million in
an all-share transaction (10% of the transaction price was deferred
for 12 months from the date of transaction and has now been paid in
full). DanioLabs was a UKbased biotechnology company focused on
developing new technologies for the use of zebrafish in safety
pharmacology, an emerging market for the life sciences industry.
Dextra Laboratories Limited was acquired on 23 March 2007 for £1.5
million in an all-share transaction. Dextra has been based in
Reading, UK since 1989 and has become a recognised expert in the
provision of highly specialised, carbohydrate-chemistry based
services to the pharmaceutical and life science industries. As a
result of its acquisition and subsequent integration into the Summit
Group, all of our carbohydrate chemistry services now operate out of
our state-of-the-art Reading facility. This division of the Group has
been profitable since acquisition.
Revenues
Total revenues for the year ended 31 January 2008 were £3.03 million
(2006/07: £1.03 million). The majority of these revenues were
generated from our profitable pharmaceutical services businesses,
which are based on our two technology platforms. We have worked hard
to attract clients from around the world and have seen revenues split
evenly between the UK, Continental Europe and the USA. The rapid
growth of the services business has been pleasing and has been built
mainly on pilot or trial projects as clients validate our innovative
technologies. In the coming year, our aim is to convert these pilot
projects into higher-value, longer-term collaborations.
Summit's cash generative and profitable services businesses are an
important, differentiating component of our robust business model and
it allows the Company to support our investment in our proprietary
R&D pipeline.
Losses
The Company's losses of £9.9 million (2006/07: £3.0 million) were in
line with our expectations and are primarily due to the R&D
investment that was necessary to advance our drug programmes. This
included our programme targeting sialorrhoea, a distressing symptom
of Parkinson's disease entering Phase II clinical trials; our
programme in seborrhoea, a primary cause of acne and also a symptom
of Parkinson's disease successfully completing a Phase I trial and
our Duchenne muscular dystrophy programme starting preclinical
development. R&D expenditure over the coming period is anticipated
to fall when the current and future development status across all our
drug programmes is reviewed.
Taxation
The Group continues to maximise the benefits of UK Research and
Development tax credit scheme by electing to take the cash equivalent
amount, rather than increase the deferred tax benefit. For the year
to 2007/08 the Group will seek to reclaim £1.1 million (2006/07: £0.5
million).
Cash flow
Our cash and short-term deposits at 31 January 2008 were £10.1
million (2006/07: £18.3 million). Net cash outflow during the year
due to capital expenditure was £1.8 million (2006/07: £1.6 million).
Summit made a number of one-off capital investments during the year
to further strengthen our services businesses. The most significant
investment was the commissioning of a new GMP-compliant facility at
our Dextra business unit, enabling the Company to produce
high-quality drug compounds for preclinical research and clinical
trials (up to Phase II). This new facility represents an important
differentiator to our carbohydrate service offerings and allows us to
immediately attract higher margin work.
We retain a tight control over cash flow and operating costs and
future capital expenditure in the services business units will be
supported only when we are confident of a high return on investment
in a short period of time. Our capital expenditure for R&D purposes
is largely complete with future investment made only to replace or
repair existing assets.
Interest received decreased from £0.79 million to £0.78 million, due
to the decrease in funds during the period.
IFRS
This set of accounts is the Group's first produced under
International Financial Reporting Standards (IFRS). The transition to
IFRS from UK Financial Reporting Standards was monitored throughout
the year by the Company's Audit Committee. The Group has borne
one-off costs in relation to the adoption of IFRS and these have been
expensed through administration costs.
Post-balance sheet events
On 27 March 2008 the Group issued 1,173,233 new ordinary 10p shares
in relation to the final deferred payment to the vendors of DanioLabs
Limited.
Darren Millington, ACMA
Chief Financial Officer and Company Secretary
3 June 2008
Consolidated Income Statement
For the year ended 31 January 2008
2008 2007
£000s £000s
Revenue 3,030 1,034
Cost of sales (1,623) (304)
Gross profit 1,407 730
Other operating income 1,079 80
Administrative expenses
Research and development (8,407) (2,952)
General and administration (2,622) (950)
Sales and marketing (1,091) (510)
Depreciation and amortisation (1,650) (376)
Share based payment (486) (404)
Total administrative expenses (14,256) (5,192)
Operating loss (11,770) (4,382)
Finance income 775 879
Finance cost (38) (6)
Loss before taxation (11,033) (3,509)
Taxation 911 489
Loss for the year attributable to equity
shareholders of the parent (10,122) (3,020)
Basic and diluted loss per ordinary share (21.25p) (8.29p)
Consolidated balance sheet
For the year ended 31 January 2008
2008 2007
£000s £000s
ASSETS
Non-current assets
Goodwill 9,767 -
Intangible assets 8,131 1,458
Property, plant and equipment 4,268 2,624
22,166 4,082
Current assets
Inventories 337 188
Trade and other receivables 1,581 645
Current tax 719 472
Cash and cash equivalents 10,088 18,289
12,725 19,594
Total assets 34,891 23,676
LIABILITIES
Current liabilities
Trade and other payables (3,226) (1,382)
Borrowings (188) (66)
Total current liabilities (3,414) (1,448)
Non-current liabilities
Provisions (1,180) (1,180)
Borrowings (1,222) (598)
Deferred tax (1,879) -
Total non-current liabilities (4,281) (1,778)
Total liabilities (7,695) (3,226)
Net assets 27,196 20,450
EQUITY
Share capital 4,967 3,722
Share premium account 22,750 22,327
Shares to be issued 1,443 -
Share based payment reserve 964 478
Merger reserve 11,328 (1,943)
Retained earnings (14,256) (4,134)
Total equity attributable to the equity shareholders
of the Parent 27,196 20,450
Consolidated cash flow statement
For the year ended 31 January 2008
2008 2007
£000s £000s
Cash flows from operating activities
Loss before tax (11,033) (3,509)
Adjusted for:
Finance income (775) (879)
Finance cost 38 6
Depreciation 766 340
Amortisation of intangible fixed assets 884 36
Share based payment 486 404
Adjusted loss from operations before changes in (9,634) (3,602)
working capital and provisions
Increase/(decrease) in trade and other receivables (189) (171)
Increase in inventories (79) (160)
Increase in trade and other payables 1,376 727
Cash used by operations (8,526) (3,206)
Taxation Received 454 168
Net cash used in operating activities (8,072) (3,038)
Investing activities
Acquisition of businesses net of cash acquired 406 (255)
Purchase of property, plant and equipment (1,846) (1,648)
Purchase of intangible assets (97) (71)
Interest received 775 790
Net cash used in investing activities (762) (1,184)
Financing activities
Proceeds from issue of share capital 142 9,971
Proceeds from receipt of loan 600 -
Repayment of debt during the period (71) (93)
Interest paid (38)
Net cash generated from financing activities 633 9,878
Net (decrease)/increase in cash and cash equivalents (8,201) 5,656
Cash and cash equivalents at beginning of period 18,289 12,633
Cash and cash equivalents at end of year 10,088 18,289
Notes to the financial statements for the year ended 31 January 2008
1. Basis of accounting
The financial information for the year ended 31 January 2008 has been
computed in accordance with International Financial Reporting
Standards as endorsed for use in the EU (IFRSs). This is the first
financial period for which IFRSs have applied. Comparative financial
information for the year ended 31 January 2007 has been restated
accordingly.
IFRS 1 First-time adoption permits companies adopting IFRS for the
first time to take some exemptions from the full requirements of IFRS
and also make certain elections in the transition period. The
exemptions and elections adopted by the Group together with full
details of the Group's IFRS accounting policies are disclosed in the
Group's Interim Results for the 6 months ended 31 July 2007, which is
available on the Group's website www.summitplc.com.
The financial information set out above does not constitute the
company's statutory accounts for the years ended 31 January 2008 or
2007. Statutory accounts for 2007, which were prepared under UK GAAP,
have been delivered to the Registrar of Companies. The statutory
accounts for 2008 which are prepared in accordance with IFRS as
endorsed for use in the EU will be delivered to the Registrar of
Companies following the company's annual general meeting. The
auditors have reported on the 2008 and 2007 accounts; their reports
were unqualified, did not include references to any matters to which
the auditors drew attention by way of emphasis without qualifying
their reports and did not contain a statement under section 237(2) or
(3) of the Companies Act 1985.
2. Shareholders' funds and statement in changes in shareholders'
equity
For the year ended 31 January 2008
Share
Share Shares based
Share premium to be payment Merger Retained
capital account Issued reserve reserve earnings
Group £000s £000s £000s £000s £000s £000s Total £000s
At 1 February 2007 3,722 22,327 - 478 (1,943) (4,134) 20,450
New share capital issued 1,245 423 - - - - 1,668
Share based payment - - - 486 - - 486
New shares to be issued 1,443 1,443
Share issue eligible for merger relief - - - - 13,271 - 13,271
Loss for the period - - - - - (10,122) (10,122)
At 31 January 2008 4,967 22,750 1,443 964 11,328 (14,256) 27,196
For the year ended 31 January 2007
Share Share based
Share premium payment Merger Retained
capital account reserve reserve earnings
Group £000s £000s £000s £000s £000s Total £000s
At 1
February
2006 3,131 12,947 74 (1,943) (1,114) 13,095
New share
capital
issued 591 9,380 - - - 9,971
Share
based
payment - - 404 - - 404
Loss for
the year - - - - (3,020) (3,020)
At 31
January
2007 3,722 22,327 478 (1,943) (4,134) 20,450
3. Annual General Meeting
The accounts will be distributed to shareholders by 6 June 2008,
prior to the Annual General Meeting due to be held at 09.30hrs on 9
July 2008 at the offices of the Company's public relations advisers:
Citigate Dewe Rogerson, 3 London Wall Buildings, London Wall, London,
EC2M 5SY.
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