Eden Research plc

August 19, 2011 02:00 ET

Interim Results for the six months ended 30 June 2011

                                                                                                 19 August 2011
                                  Eden Research plc ("Eden" or "the Company")
                             Interim Results for the six months ended 30 June 2011

Eden Research plc, a leading UK agrochemical and encapsulation development company, today announces its interim
results for the six months ended 30 June 2011.

Business Highlights
    *   Co-encapsulation development agreement signed with Tagros Chemicals India PVT Limited ("Tagros")granting 
        Tagros  the  right  to  use Eden's terpene encapsulation system to co-encapsulate one of their important 
        crop molecules, used in agricultural as well as Public Health, with blends of synergistic terpenes
    *   Memorandum  of  Understanding for both a marketing and licence agreement signed with TerpeneTech Limited
        for  the  consumer  and agro-industrial biocide areas. A licence fee of 100,000 Euros will be payable to 
        Eden, as well as on-going royalties on net sales of products

    *   Confirmation  of  completeness  of the dossiers for the three active substances submitted by Eden, under
        Directive 91/414/EEC, published in the Official Journal by European Commission

    *   Completion  of  negotiations for remaining worldwide territories through an evaluation agreement for our
        nematode product
Financial Highlights

    *       Operating Loss for the period, excluding amortisation, of GBP0.40m (2010: GBP0.58m)

    *       Revenue for the period of GBP0.02m (2010: GBP0.09m)

    *       Administrative expenses GBP0.41m (2010: GBP0.68m)
    *       Cash at bank GBP1.18m (2010: GBP0.04m)

    *       Convertible debt GBP0.63m (2010: GBP2.71m)

    *       Net current assets/(liabilities), excluding convertible loan notes, GBP0.25m (2010: GBP(1.37m))

Clive Newitt, Managing Director, said:

"The  first half of 2011 has seen the strengthening of Eden's financial position, through the conversion  of  a
large  portion of the convertible debt and exercise of warrants announced in June. This is part of the on-going
preparation  for  an  AIM transition, though current market instability has, of course,  led  us  to  carefully
monitor the situation to ensure that the move is made at the optimal time.

Also,  a  number  of  agreements have been entered into which further expand the  potential  applications  and,
therefore, commercial opportunities for Eden's encapsulation technology.

We  have  concluded  arrangements  for  the  USA and Canada for our nematode  product  which  means  that  this
application is now under licence or exclusive options for the entire world.

So  far,  the second half of this year has already seen further interest from significant players  in  a  broad
spectrum  of industries and we hope to report progress on these events as and when they arise. In addition,  we
expect to see various key events occurring, such as registration, option and licence agreement milestones."

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 2011

                                                                    Six                 Six          Year ended  
                                                                 months              months         31 December
                                                               ended 30            ended 30                2010
                                                              June 2011           June 2010             GBP'000
                                                                GBP'000             GBP'000             audited
                                                              unaudited           unaudited
Group Revenue                                                        15                  92                 173  
Cost of sales                                                         -                   -                   -  
Gross profit                                                         15                  92                 173  
Administrative expenses                                           (411)               (676)             (1,335)  
Amortisation of intangible assets                                 (329)               (357)               (664)  
Share based payments                                              (315)                   -               (436)  
                                                                (1,040)             (1,033)             (2,435)  
Other operating Income                                                1                   -                   -  
Operating loss                                                  (1,039)               (941)             (2,263)  
Finance costs                                                   (1,183)               (490)             (1,019)  
Loss on ordinary activities before taxation                     (2,222)             (1,431)             (3,282)  
Tax on loss on ordinary activities                                    -                   -                  31  
Loss for the financial period                                   (2,222)             (1,431)             (3,251)  
Other Comprehensive Income net of tax                                 -                   -                   -  
Total Comprehensive Income                                      (2,222)             (1,431)             (3,251)  
Loss per share (pence) - basic and diluted                       (2.48)              (2.32)              (5.21)  

Eden Research plc
Consolidated Statement of Financial Position as at 30 June 2011

                                                30 June 2011             30 June 2010              31 Dec 2010
                                                  GBP'000                  GBP'000                   GBP'000
                                                 unaudited                unaudited                  audited
NON-CURRENT ASSETS                                                                               
Intangible assets                                       7,895                    8,463                    8,198
Trade and other receivables                               132                       96                       75
Cash and cash equivalents                               1,182                       35                        6
                                                        1,314                      131                       81
TOTAL ASSETS                                            9,209                    8,594                    8,279
CURRENT LIABILITIES                                                                              
Trade and other payables                                1,064                    1,499                    1,597
Financial liabilities - borrowings                                                               
- Convertible loan notes                                  627                    2,705                    2,948
TOTAL CURRENT LIABILITIES                               1,691                    4,204                    4,545
NON-CURRENT LIABILITIES                                                                          
Other payables                                          1,131                    1,097                    1,131
 TOTAL LIABILITIES                                      2,822                    5,301                    5,676
Called up share capital                                   993                      617                      670
Share premium account                                  20,122                   14,146                   14,754
Merger reserve                                         10,210                   10,210                   10,210
Warrant reserve                                         1,374                    2,490                    1,254
Retained earnings                                    (26,312)                 (24,170)                 (24,285)
TOTAL EQUITY attributable                                                                        
to owners of the parent                                 6,387                    3,293                    2,603
TOTAL EQUITY AND LIABILITIES                            9,209                    8,594                    8,279

Notes to the Interim Results

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

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

Other notes

Eden's  strategy  is  focused  on  the  development and commercialisation of  its  terpene-based  encapsulation
technology for agricultural and non-agricultural uses through appropriate regional or global partnerships.

Terpenes  are natural compounds which function as defence mechanisms in many plant groups and are  released  in
response  to infection, attack by pests, stress or mechanical injury. Terpenes are already widely used  in  the
food flavouring, cosmetic and pharmaceutical industries.

Historically,  terpenes  have had limited commercial use in the agrochemical sector due  to  their  volatility,
phytotoxicity  and  poor  solubility. Eden's platform encapsulation technology  provides  the  unique,  natural
solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

For more information about Eden, please visit www.edenresearch.com

Contact Information

  • Eden Research plc