Amphion Innovations plc
Full Year Trading Update
NAV per Share expected to be £0.30 (2007: £0.22)
DataTern provides new revenue streams of over $5 million
New Product launches from Partner Companies; Kromek, Myconostica, and PrivateMarkets
$13 million successfully raised for Partner Companies
19 January 2009 - Amphion Innovations plc (LSE: AMP) (“Amphion” or the “Company”), is pleased to announce that results for the 12 month period to 31 December 2008 are expected to show an increase in Net Asset Value per Share (‘NAV’) in sterling to £0.30 being $0.44 (£0.22 and $0.44 as at 31 December 2007), broadly in line with market expectations. While 2008 was a challenging period for all businesses, Amphion continued to meet its commercial objectives. The anticipated increase in NAV per Share stems from a combination of good progress made by the Partner Companies together with exchange rate movements in the second half improving NAV per Share in sterling terms as the majority of the Partner Companies are valued in dollars. The Company has also benefited from new licensing revenues from DataTern which is moving the business closer to becoming self funded. However, while the underlying trading has been positive, the Company expects to report significantly lower profit before tax compared to the prior year due primarily to a reduction in the fair value gains on investments.
Amphion builds shareholder value in high growth companies in the medical and technology sectors by using a focused, hands-on company building approach, based on decades of experience in both the US and UK. Currently there are 8 Partner Companies developing proven technologies targeting substantial commercial marketplaces in excess of $1 billion. Each Partner Company aims to achieve a target exit value in excess of $100 million supported by Amphion’s management team’s strong track record of delivering liquidity events.
Amphion is also developing DataTern, a wholly owned subsidiary, which was established in order to commercialise selected intellectual property opportunities in partnership with Amphion’s Partner Companies. In October and November 2008, Amphion announced that DataTern had completed two additional licensing deals for its key ORM patents, bringing the total for the year to three, generating gross revenue of over $5 million during the year. In 2009, Amphion expects to continue to build DataTern. We believe that there are many additional potential licensees and expect to be able to generate a significant amount of revenue in 2009 and beyond.
During 2008, Amphion successfully helped its Partner Companies raise over $13 million.
The majority of this fundraising took place in the first half of the year although Kromek was successfully able to complete outside financing in the second half. Amphion’s Partner Companies continue to make progress and several important milestones were reached. In September 2008, Myconostica formally launched its first product, FXG™: RESP (Asp +), its new test to assist medical and scientific professionals to identify the most common causes of fungal pneumonia. In November 2008, Kromek launched its first major product for the security market, the Kromek Bottle Scanner, an automated detection system which allows rapid analysis of the materials inside an unopened bottle. In December 2008, PrivateMarkets reached an important milestone with the first live trading taking place on its platform, the first bilateral electronic structured transaction service designed to satisfy the unique needs of buyers and sellers of energy commodities. Also during 2008, Motif BioSciences, began analysing the phenotypic and genotypic data from the genetic samples and clinical data collected by Professor Froguel of Imperial College and his colleagues in Morocco.
Amphion announced in December the successful raising of $2.78 million of Convertible Loan and closed an additional $500,000 in 2008 after that announcement. We believe that the resources provided by this financing, coupled with DataTern’s expected licensing revenues, should allow Amphion to continue to support our Partner Companies and help them make progress in 2009.
Amphion expects to announce its preliminary results for the 12 months to 31 December 2008, on 16 March 2009.
Richard Morgan, Amphion’s Chief Executive Officer, said, “2008 was a difficult year in the economic and financial environments, but Amphion managed to make very good progress, particularly in the first half of the year. We have confidence in the strength of our business model and we believe we have 8 exciting Partner Companies, each of which has considerable potential. 2009 will be a challenging year but we expect to be able to deliver further growth and value for our shareholders.”
For further information please contact
Amphion Innovations plc
Charlie Morgan, Director of Communications
+1 (212) 210 6224
Tim Robertson/ Jamie Milton/ Matthew Law
+44 20 7930 0777
Charles Stanley (Nominated Adviser)
Mark Taylor/ Freddy Crossley
+44 20 7149 6000
About Amphion Innovations plc
Amphion (LSE: AMP) builds shareholder value in high growth companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK. Amphion has significant shareholding in 8 Partner Companies, developing proven technologies targeting substantial commercial marketplaces, each in excess of $1 billion. Each Partner Company is chosen with the goal of achieving an exit valuation in excess of $100 million.
On the web: www.amphionplc.com