Eden Research plc

September 20, 2010 02:00 ET

Interim Results for the six months ended 30 June 2010

                                               Eden Research plc
                                           ("Eden" or "the Company")
                             Interim Results for the six months ended 30 June 2010

Eden  Research  plc  (PLUSMARKETS: EDE), a leading UK agrochemical development  company,  today  announces  its
interim  results  for  the six months ended 30 June 2010.  Eden's strategy is focused on  the  development  and
commercialisation of terpene-based encapsulation technology for agricultural and non-agricultural uses.

Business Highlights
    *   Development Option and Licence agreement signed with TEVA Animal Health ("TEVA") for veterinary health
        applications with milestone payments totaling $1.05m plus royalties
    *   Data Sharing agreement signed with DSM Nutraceuticals for use of part of Eden's EU registration data
    *   Licence agreement concluded with Ecostyle BV ("Ecostyle") for use of Eden's 3AEY product in amateur
        gardening, with milestone and upfront payments of $0.24m plus royalties
    *   Submission  of the Draft Assessment Report ("DAR") for 3AEY to the European Food Safety  Authority
        ("EFSA") by the Chemicals Regulation Directorate ("CRD")
    *   Option agreement entered into with Certis Europe BV ("Certis") for Eden's nematode product with an
        upfront fee of $100,000 followed by a license fee on exercise of the option of $900,000, plus annual 
        royalty payments once sales have begun
Financial Highlights

    *   Loss for the period of £1,367,000 (2009: £1,002,000), in line with the Company's expectations
    *   Revenue for the period of £92,000  (2009: £65,000), being the upfront payments for the Ecostyle and
        Certis agreements
    *   Administrative expenses £676,000 (2009: £424,000), reflecting the additional costs incurred for the
        final submission of the DAR and costs relating to licensing agreements
    *   Convertible Loan Agreement with Trafalgar Capitalized Specialised Investment Funds repaid in full, in
    *   Funding facility of £1m secured in the year

Clive Newitt, Eden's Managing Director said:

"As  reported last year, our expectation and intention was to complete a number of deals for both our  products
and  our encapsulation technology. I feel that we have achieved this with the agreement signed with Certis  for
our  nematode  product, as well as the agreements with TEVA and Ecostyle, which once again show  the  diversity
that our patented encapsulation system has.

The  fact that we are entering into agreements with such well respected partners goes to show, we believe,  the
significant  value that our technology has. The submission of the DAR for 3AEY was an important  milestone  for
the  Company  as the substances which we are registering for use in the EU underpin a lot of our  other  future
products,  as  well  as  assisting our partners outside of the EU in commercialising  the  products  they  have
licensed from us.

Since  the first half of 2010, we have announced that our technology is being used in two UK Government  funded
projects as well as being at the heart of an African initiative where our licensee, Lachlan Kenya Limited,  has
received  funding of $0.7m. These are very exciting opportunities for both Eden and our partners and  we  shall
keep  our  shareholders informed of their progress. We also look forward to announcing  further  deals  in  the
second half of 2010."

The Directors of Eden are responsible for the contents of this announcement.

For further information please contact:

Eden Research plc                                                          01993 862761
Clive Newitt, Managing Director

St Helens Capital Partners LLP                                             020 7368 6959
Mark Anwyl

Eden Research plc
Consolidated Statement of Comprehensive Income for the six months ended 30 June 2010

                                                                    Six                 Six         Year ended  
                                                                 months              months        31 December
                                                               ended 30            ended 30               2009
                                                              June 2010           June 2009              £'000
                                                                  £'000               £'000            audited
                                                              unaudited           unaudited
Group Revenue                                                        92                  65                193  
Cost of sales                                                         -                   -                  -  
Gross profit                                                         92                  65                193  
Administrative expenses                                            (676)               (424)              (836)  
Amortisation of intangible assets                                  (329)               (295)              (593)  
Share based payments                                                  -                (369)              (369)  
                                                                 (1,005)             (1,088)            (1,798)  
Other operating Income                                                -                   -                 25  
Operating loss                                                     (913)             (1,023)            (1,580)  
Finance income                                                        -                   -                  -  
Finance costs                                                      (454)                (45)              (157)  
Loss on ordinary activities before taxation                      (1,367)             (1,068)            (1,737)  
Tax on loss on ordinary activities                                    -                  66                 66  
Loss for the financial period                                    (1,367)             (1,002)            (1,671)  
Other Comprehensive Income net of tax                                 -                   -                  -  
Total Comprehensive Income                                       (1,367)             (1,002)            (1,671)  
Loss per share (pence) - basic and diluted                        (2.22)              (1.78)             (2.93)  

Eden Research plc
Consolidated Statement of Financial Position as at 30 June 2010

                                                 30 June 2010             30 June 2009             31 Dec 2009
                                                        £'000                    £'000                   £'000
                                                    unaudited                unaudited                 audited
NON-CURRENT ASSETS                                                                               
Intangible assets                                       7,653                    8,178                   7,976
Property, plant and equipment                               -                        4                       -
                                                        7,653                    8,182                   7,976
CURRENT ASSETS                                                                                   
Trade and other receivables                                96                      121                      36
Cash and cash equivalents                                  35                        1                      82
                                                          131                      122                     118
TOTAL ASSETS                                            7,784                    8,304                   8,094
CURRENT LIABILITIES                                                                              
Trade and other payables                                1,499                    1,343                   1,009
Financial liabilities - borrowings                                                               
- Convertible loan notes                                2,705                    2,340                   2,049
TOTAL CURRENT LIABILITIES AND                                                                    
   TOTAL LIABILITIES                                    4,204                    3,683                   3,058
Called up share capital                                   617                      563                     617
Share premium account                                  14,146                   13,116                  14,146
Merger reserve                                         10,210                   10,210                  10,210
Warrant reserve                                         2,490                    2,490                   2,186
Retained earnings                                     (23,882)                 (21,758)                (22,124)
TOTAL EQUITY attributable                                                                        
to owners of the parent                                 3,581                    4,621                   5,035
TOTAL EQUITY AND LIABILITIES                            7,785                    8,304                   8,093


The above numbers have not been reviewed by the company's auditors.

There  have  been no changes in accounting policies which are likely to affect the validity of the  comparative

3AEY  is  Eden's  lead  product; a terpene based fungicide. Terpenes are natural compounds  which  function  as
defence mechanisms in many plant groups and are released in response to infection, stress or mechanical injury.
Terpenes are already widely used in the food flavouring, cosmetic and pharmaceutical industries.

Contact Information

  • Eden Research plc