for the Period Ended 31 December 2021
Directors report | |
Profit and loss | |
Balance sheet | |
Additional notes | |
Balance sheet notes |
Directors' report period ended
The directors present their report with the financial statements of the company for the period ended 31 December 2021
Principal activities of the company
Additional information
Review of business and future developmentsThe directors are satisfied with the result for the period, which was as expected. The loss before taxation for the period was £12,435,851 (year ended 31 March 2021: £14,688,619). In addition the waiver of interest on preference shares and the reversal of accumulated dividends resulted in a gain of £17,317,620 that was credited directly to reserves. There remains cumulative losses and the directors have not recommended the payment of a dividend (year ended 31 March 2021: £nil).While the severity of the COVID-19 pandemic has eased, the effects on our supply chain and labour at our contracted CROs and clinical sites are still being adversely affected. The situation will continue to be monitored during the new financial year.The Russian invasion of the Ukraine has had an impact on the Company. The initial plan was to have five clinical sites in Russia for the PSP 006 Phase 3 Efficacy study. However, all sites located in Russia have now been withdrawn from the study and are being replaced by five alternative sites elsewhere. Although this will have a potential impact on both the cost and timing of the PSP 006 Efficacy study, management has assessed and continues to assess the likely impact of the war in Ukraine on the financial position of the Company and has concluded that, at present, it is not expected to affect the Company’s ability to continue as a going concern. The developing and uncertain situation will continue to be closely monitored throughout the new financial year.Going concernThe financial statements have been prepared on a going concern basis, which assumes that the Company will continue its operational existence for the foreseeable future and for at least 12 months from the approval of these financial statements.For the 9 month period ended 31 December 2021, the Company made a loss after taxation of £10,225,036 (year ended 31 March 2021: £12,878,395). As at 31 December 2021, the Company had total net assets of £37,290,370 (year ended 31 March 2021: net liabilities of £68,437,990).The Company completed a Series C funding round in April 2021 in the sum of £70.5m ($95.5m) of which £50.1m ($68m) had been received as at 31 December 2021 and is included within the cash balance at this date. The third (final) tranche is expected by mid-2023 £20.4m ($27.5m) upon achievement of a well-defined clinical milestone.The Company anticipates that the current cash balance will run to May 2023 under the current business plan. Accordingly, as the company expects to continue to incur significant costs from the continuation of a clinical trial, the Company has planned an additional equity funding round during the fourth quarter of 2022, in addition to the third tranche closing as expected after mid 2023. The directors are confident that it is appropriate to prepare these financial statements on a going concern basis. However, there is no guarantee that attempts to raise additional funding nor the achievement of the clinical milestone for the third (final) tranche will be successful, therefore these represent a material uncertainty, which may cast significant doubt about the Company’s ability to continue as a going concern. These financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.Small companies provision statement This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. In addition, the Company has taken advantage of the exemption available and has not presented a Strategic Report.Research and Development Pulmocide is a biopharmaceutical company with a mission to treat common acute and chronic respiratory tract infections associated with serious, often life-threatening complications and can have significant effect on patients’ quality of life. The Company’s innovative approach to drug development provides targeted delivery to the lung so that infections can be treated with minimal unwanted systemic effects. The current focus is the next stage of development of PC945/Opelconazole, a potent, novel anti-fungal agent that has been specifically developed as an inhaled treatment for pulmonary aspergillosis. Two registration studies to support filing for approval have now been commenced. Research and Development costs of £8,679,711 (year ended 31 March 2021: £5,390,488) were charged to the Profit and Loss Account.Directors’ indemnitiesAs permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial period and is currently in force. The Company also purchased Directors’ and Officers’ liability insurance in respect of itself and its directors and maintained this throughout the financial period.Independent Auditors The independent auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office, and a resolution concerning their reappointment will be proposed at a Board Meeting.Statement of directors’ responsibilities in respect of the financial statementsThe directors are responsible for preparing the Directors' report and financial statements and the financial statements in accordance with applicable law and regulation.Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” Section 1A, and applicable law).Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:select suitable accounting policies and then apply them consistently;state whether applicable United Kingdom Accounting Standards, comprising FRS 102 Section 1A have been followed, subject to any material departures disclosed and explained in the financial statements;make judgements and accounting estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.Directors’ confirmationsIn the case of each director in office at the date the Directors’ report is approved:As far as the directors are aware, there is no relevant audit information of which the Company’s auditors are unaware; andThey have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company’s auditors are aware of that information.
Directors
The directors shown below have held office during the whole of the period from
1 April 2021 to 31 December 2021
The director shown below has held office during the period of
21 September 2021 to 31 December 2021
The directors shown below have held office during the period of
18 May 2021 to 31 December 2021
The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006
This report was approved by the board of directors on
And signed on behalf of the board by:
Name:
Status: Director
for the Period Ended
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The notes form part of these financial statements
This report was approved by the board of directors on
and signed on behalf of the board by:
Name:
Status: Director
The notes form part of these financial statements
for the Period Ended 31 December 2021
Basis of measurement and preparation
Tangible fixed assets depreciation policy
Other accounting policies
for the Period Ended 31 December 2021
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for the Period Ended 31 December 2021
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for the Period Ended 31 December 2021
Movement in non-current investmentsCost or Valuation and Net Book Value £As at 1 April 2021 234055Additions 173859As at 31 December 2021 407914Subsidiaries and related undertakingsThe list of subsidiaries and other related undertakings is as follows:Pulmocide Inc was incorporated August 2019. Pulmocide Spain was incorporated October 2021.Pulmocide Inc155 Federal Street, Boston, MA 02210, USAPharmaceutical drug research, development and commercialisation100% ownedPulmocide SpainBartolome Briones, Velazquez 12, 28001, Madrid, Spain100% ownedThe company’s investment in Pulmocide Inc and Pulmocide Spain is direct ownership.
for the Period Ended 31 December 2021
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for the Period Ended 31 December 2021
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for the Period Ended 31 December 2021
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