LONDON, Aug. 3 /PRNewswire-FirstCall/ -- SkyePharma PLC (Nasdaq: SKYE;
LSE: SKP) announces that it has restated its results for the year ending 31
December 2004, previously prepared under UK Generally Accepted Accounting
Principles ("UK GAAP"), under International Financial Reporting Standards
("IFRS"). From 1 January 2005 all of SkyePharma's consolidated financial
statements will be prepared under IFRS and the restatement of the 2004 results
is provided to assist in comparisons with the prior year.
The table below summarises the principle changes arising from the
restatement of the Consolidated Profit and Loss account:
UK GAAP Adjustment IFRS
Year to 31 December 2004 (Unaudited)
(All figures in pounds Sterling) '000 '000 '000
Revenue 62,168 13,052 75,220
Gross Profit 31,014 16,029 47,043
Operating loss (20,689) 16,944 (3,745)
Retained loss (24,296) 494 (23,802)
Loss per Ordinary Share (3.9p) -- (3.9)p
EBITDA (6,370) 12,808 6,438
Donald Nicholson, SkyePharma's Finance Director, said: "The retrospective
application of IFRS to our 2004 financial statements has resulted in minimal
net impact on our 2004 retained loss and loss per share. However, IFRS
materially alters the composition of our reported Profit & Loss account,
particularly as regards the recognition of milestone payments and the
treatment of our transactions with Paul Capital Royalty Acquisition Fund that
have been used to fund part of our late-stage clinical development programme.
I would stress that these are merely accounting changes and have no impact on
the company's cash flow."
SkyePharma intends to report its unaudited financial statements for the
six months ended 30 June 2005 in September.
For further information please contact:
SkyePharma PLC +44 207 491 1777
Donald Nicholson, Finance Director
Peter Laing, Director of Corporate Communications +44 207 491 5124
Sandra Haughton, US Investor Relations +1 212 753 5780
Buchanan Communications +44 207 466 5000
Tim Anderson / Mark Court/ Rebecca Skye Dietrich
About SkyePharma
SkyePharma PLC develops pharmaceutical products benefiting from
world-leading drug delivery technologies that provide easier-to-use and more
effective drug formulations. There are now eleven approved products
incorporating SkyePharma's technologies in the areas of oral, injectable,
inhaled and topical delivery, supported by advanced solubilisation
capabilities. For more information, visit http://www.skyepharma.com.
Certain statements in this news release are forward-looking statements and
are made in reliance on the safe harbour provisions of the U.S. Private
Securities Litigation Act of 1995. Although SkyePharma believes that the
expectations reflected in these forward-looking statements are reasonable, it
can give no assurance that these expectations will materialize. Because the
expectations are subject to risks and uncertainties, actual results may vary
significantly from those expressed or implied by the forward-looking
statements based upon a number of factors, which are described in SkyePharma's
20-F and other documents on file with the SEC. Factors that could cause
differences between actual results and those implied by the forward-looking
statements contained in this news release include, without limitation, risks
related to the development of new products, risks related to obtaining and
maintaining regulatory approval for existing, new or expanded indications of
existing and new products, risks related to SkyePharma's ability to
manufacture products on a large scale or at all, risks related to SkyePharma's
and its marketing partners' ability to market products on a large scale to
maintain or expand market share in the face of changes in customer
requirements, competition and technological change, risks related to
regulatory compliance, the risk of product liability claims, risks related to
the ownership and use of intellectual property, and risks related to
SkyePharma's ability to manage growth. SkyePharma undertakes no obligation to
revise or update any such forward-looking statement to reflect events or
circumstances after the date of this release.
SKYEPHARMA PLC
Unaudited Restatement of Financial Information
for the year ended 31 December 2004
to International Financial Reporting Standards
Introduction
From 1 January 2005 SkyePharma is required to prepare its consolidated
financial statements in accordance with International Financial Reporting
Standards, International Accounting Standards and interpretations (referred to
collectively hereafter as 'IFRS'). These standards represent a significant
change from UK Generally Accepted Accounting Principles ('UK GAAP'),
SkyePharma's historical primary reporting GAAP.
SkyePharma's 2004 consolidated financial statements approved on 31 May
2005 were prepared in accordance with UK GAAP. This document sets out and
explains the restatements that are required to conform the Group's published
2004 consolidated financial statements to IFRS. The financial information
presented below is unaudited.
Basis of Preparation
Transition Date
IFRS 1 'First time adoption of International Financial Reporting
Standards' deals with how companies will have to apply IFRS for the first
time. IFRS 1 requires that comparative information be restated retrospectively
for all years that a full set of comparatives is provided. SkyePharma will
provide one year of comparative information in its Annual Report for the year
ended 31 December 2005 and therefore the Group's IFRS transition date is 1
January 2004. SkyePharma's first report published using IFRS will be its
interim results for the period to 30 June 2005 to be published in September
2005.
Assumptions
The financial impact of the transition to IFRS has been assessed based
upon the assumption that all IFRS standards issued by the International
Accounting Standards Board ('IASB') that are effective for 2005 reporting are
endorsed by the European Commission. At present, the European Commission has
not endorsed all of these standards. Although the IASB has issued all
standards that will be effective for the year ended 31 December 2005, some new
standards may be available for early adoption, changes are still anticipated
to others and the interpretation and application of certain recently revised
standards is still being debated. Therefore the IFRS 2004 financial
information presented here may still be subject to change.
Presentation of financial information
For ease of comparison, and in order to minimise the number of restatement
adjustments, the financial information included within this document is
presented in the format of our 2004 consolidated financial statements. The
information has not been presented in accordance with IAS 1 'Presentation of
Financial Statements' and accordingly further presentational adjustments may
be required at a later date.
IFRS 1 Exemptions
In general a company is required to determine its IFRS accounting policies
and apply these retrospectively to determine its opening balance sheet under
IFRS at its transition date (1 January 2004 for SkyePharma). However IFRS 1
permits a number of exemptions from this general rule in order to assist
companies in their transition to IFRS. The key IFRS 1 provisions relevant to
the Group are outlined below.
- IFRS 3: Business combinations
A first time adopter has the option not to restate most aspects of past
business combinations and instead to apply IFRS 3 prospectively from the
transition date. SkyePharma has elected to take this option. As a result the
goodwill balance under IFRS at 1 January 2004 remains unchanged from that
previously recorded under UK GAAP. No amortisation is charged from 1 January
2004, SkyePharma's transition date.
- IFRS 2: Share-based payment
IFRS 2 applies to equity instruments, such as share options, granted since
7 November 2002 and not vested at 1 January 2005. However under the
transitional arrangements of IFRS 1, there is the option to adopt
retrospective application of the standard where companies have previously
publicly disclosed the fair value of those equity instruments determined at
the measurement date. SkyePharma has previously disclosed those fair values in
its US GAAP ('US Generally Accepted Accounting Principles') disclosures and
therefore elected to adopt retrospective application of IFRS 2.
- IAS 19: Employee benefits
In accordance with IFRS1, the Group expects to elect to fully recognise
all actuarial gains and losses on its pension scheme in France at 1 January
2004, its transition date. Subject to the endorsement by the European Union of
IAS 19 (revised), ongoing actuarial gains and losses will be recognised in the
Statement of Recognised Income and Expenditure.
- IAS 32 and IAS 39: Financial Instruments
IFRS1 allows companies the option to not present comparative information
on financial instruments in accordance with IAS 32 'Financial Instruments:
Disclosure and presentation' and IAS 39 'Financial Instruments: Recognition
and Measurement'. The Group will not utilise this exemption and has elected to
apply IAS 32 and IAS 39 retrospectively.
- IAS 21: The Effects of Changes in Foreign Exchange Rates
An exemption offered by IFRS 1 in respect of IAS 21 gives the Group the
option to reset its cumulative translation differences to zero at 1 January
2004, its date of transition. The Group has elected not to take this exemption
and will include its cumulative translation differences as a separate
component within equity. This is because the information is readily available
and will be consistent with its reporting under US GAAP.
Impact of Restatement
The impact of restatement to IFRS on the 2004 financial information is
summarised below.
UK GAAP Adjustment IFRS
Year to 31 December 2004 (Unaudited)
(All figures in pounds Sterling) '000 '000 '000
Revenue 62,168 13,052 75,220
Gross Profit 31,014 16,029 47,043
Operating loss (20,689) 16,944 (3,745)
Retained loss (24,296) 494 (23,802)
Loss per Ordinary Share (3.9)p -- (3.9)p
EBITDA (6,370) 12,808 6,438
The overall impact is positive to revenue, gross profit, operating profit
and EBITDA and broadly neutral to retained loss.
The principal items that lead to the IFRS adjustments are set out in the
table below. The impact of these adjustments on SkyePharma's income statement
and balance sheet is presented at pages 10 to 13.
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
UK GAAP (20,689) (24,296) 63,623
Revenue Recognition 13,052 13,052 (6,727)
Sale of Royalty Interests to Paul
Capital 3,032 (6,954) (43,225)
Share Based Payment (2,837) (2,837) -
Goodwill Amortisation 4,136 4,136 4,136
Convertible Bonds:
Interest Charge -- (309) 16,429
Exceptional Loss on Bond Exchange -- (6,174)
Financial Instruments:
Fixed Asset Investments -- -- (543)
Other (516) (516) (162)
Other 77 96 (271)
Total Adjustments 16,944 494 (30,363)
IFRS (3,745) (23,802) 33,260
Each of the IFRS adjustments set out in the table above is explained
below.
Revenue Recognition
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
IFRS/ UK GAAP Difference 13,052 13,052 (6,727)
Under IFRS SkyePharma has adopted a revenue recognition policy in
accordance with IAS 18 'Revenue' which is similar to the policy that
SkyePharma has historically applied under US GAAP. Under UK GAAP SkyePharma
has generally recognised up front payments immediately in full where there are
no material future obligations and the payments are nonrefundable, on the
basis that the up front payment is for past services. Under IFRS generally up
front payments will be deferred and amortised on a systematic basis over the
period of development to filing. This is the same as the treatment adopted
under US GAAP. However, the accounting for each agreement will continue to be
determined on an individual basis. Under IFRS revenue in relation to upfront
payments will generally be recognised at a later date than under UK GAAP and
therefore will not correspond with cash flow.
The IFRS restatement increases 2004 revenue so reducing operating and
retained loss by 13.1 million pounds Sterling. This relates to upfront
payments that have been previously recognised in our UK GAAP financial
statements in earlier years but which under IFRS would not have been
recognised in full but been spread forward across the period of development to
filing. The IFRS restatement increases deferred income at 31 December 2004 by
6.7 million pounds. Under IFRS at 31 December 2004 SkyePharma has recorded
14.1 million pounds of deferred income. It is likely that 11.8 million pounds
of this deferred income will be recognised in 2005.
Sale of Royalty Interests
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
IFRS/ UK GAAP Difference 3,032 (6,954) (43,225)
The Group entered into two transactions with Paul Capital Royalty
Acquisition Fund ('Paul Capital') in 2000 and 2002. Under these transactions
Paul Capital provided a total of $60 million in return for the sale of a
portion of the potential future royalty and revenue streams on a selection of
the Group's products. Under UK GAAP the proceeds received from Paul Capital
are treated as a sale and recorded as Other Operating Income and royalties are
expensed when incurred.
Under IFRS the sale of royalty interests to Paul Capital is accounted for
on a similar basis to that under US GAAP. Under IFRS the proceeds received
from Paul Capital meet the definition of a financial liability under IAS 32,
and are treated as such. Under IFRS no Other Operating Income is recognised,
royalties paid to Paul Capital are treated as repayment of the liability and
in addition notional interest is charged on the liability. The contractual
arrangement with Paul Capital is unaffected by this change in accounting and
the arrangement remains a royalty agreement under which royalties are payable
on revenues earned and payments received. The liability has no face value but
represents the net present value of royalties we expect to pay Paul Capital
over the term of the agreement. If ultimately revenues are lower than we
forecast, the royalty payments to Paul Capital will be lower and the
calculated value of the liability will fall.
The IFRS restatement reduces operating loss by 3.0 million pounds, being
the removal of royalties payable of 3.0 million pounds, the removal of foreign
exchange losses of 1.2 million pounds net of the removal of Other Operating
Income of 1.2 million pounds. However the IFRS restatement increases the 2004
interest charge by 10.0 million pounds to result in an overall increase in
retained loss by 7.0 million pounds. The restatement decreases net assets at
31 December 2004 by 43.2 pounds million being the recognition of the Paul
Capital debt of 49.0 million pounds, the removal of 7.1 million pounds of
deferred Other Operating Income that will no longer be recognised under IFRS
and is removed from the opening balance sheet plus other balance sheet
reclassifications of 1.3 million pounds in relation to prepaid royalties.
The interest charge recognised under IFRS in any given year is calculated
by applying an effective interest rate to the outstanding liability and has no
direct correlation to the amount of cash we will pay to Paul Capital in that
year. The effective interest rate is based on the cash flows anticipated over
the full term of the agreement based upon the projected royalties payable to
Paul Capital. In the early years of the agreement, where royalty income and
therefore royalties payable to Paul Capital are forecast to be lower and the
liability higher, the effective interest charge will therefore be higher.
However, over time, as royalty income and therefore royalties payable increase
and the interest charge is based on the decreasing liability, the interest
charge is expected to fall.
Share Based Payment
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
IFRS/ UK GAAP Difference (2,837) (2,837) --
IFRS 2 requires that for share option awards to employees, the fair value
of the employee services received should be measured by reference to the fair
value of the share option at the grant date. This differs significantly from
the treatment under UK GAAP where the charge to the profit and loss account is
based on the difference between the fair value of the shares at the date of
grant and the exercise price. Since SkyePharma has historically granted
employee options where the share price at the date of grant equals the
exercise price, there has been no charge to record under UK GAAP.
SkyePharma is adopting retrospective application of IFRS 2 since it has
previously publicly disclosed the fair value of employee share option awards
in its US GAAP disclosures and 20-F. The charge under IFRS for 2004 will
therefore be the same as that previously disclosed under US GAAP standard FAS
123. The IFRS restatement results in an additional charge to the 2004 income
statement of 2.8 million pounds, increasing both operating and retained loss.
The restatement has no impact on net assets.
Goodwill Amortisation
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
IFRS/ UK GAAP Difference 4,136 4,136 4,136
UK GAAP required goodwill to be amortised over its estimated expected
useful life which the Directors determined as 20 years. Under IFRS, goodwill
is considered to have an indefinite life and so is not amortised, but is
subject to annual impairment testing. Therefore the annual goodwill charge
made under UK GAAP will not be recorded under IFRS from 1 January 2004, the
IFRS transition date. The IFRS restatement results in a reduction in the 2004
amortisation charge of 4.1 million pounds thereby reducing both operating and
retained loss. Net assets at 31 December 2004 are increased by the same
amount.
Convertible Bonds
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
Interest Charge -- (309) 16,429
Exceptional Loss on Bond Exchange -- (6,174)
Total IFRS/ UK GAAP Difference -- (6,483) 16,429
In total the IFRS adjustments on the convertible bonds result in an
additional interest charge in the 2004 income statement of 6.5 million pounds
and an increase in net assets at 31 December 2004 by 16.4 million pounds. Of
the 6.5m pounds additional interest charge, 0.3m pounds relates to the IFRS
accounting for convertible bonds in general and 6.2 million pounds is an
additional exceptional IFRS charge caused by the 2004 refinancing of
SkyePharma's convertible bond due 2005.
Under UK GAAP the total net proceeds of the convertible bond issues in
2000 (due 2005) and 2004 (due 2024) were recorded as debt. Under IFRS the
conversion feature of each of the bonds must be separated ('bifurcated') from
the debt and classified separately as equity. The net impact of the changes to
IFRS and in particular the bifurcation of the equity component of each bond
has led, at 31 December 2004, to a reduction in the carrying value of
convertible debt of 16.4 million pounds and an increase in equity of 16.4
million pounds. While the carrying value of the convertible debt in the
balance sheet is reduced, the amount of debt repayable at maturity is
unchanged and consequently under IFRS the Group will record higher interest
charges in each year to maturity or conversion. In 2004, the impact of these
factors has led to an additional interest charge of 0.3 million pounds. The
terms of the debt are unaffected and the physical cash payments due remain the
same; as such the cost of the debt in cash terms is unaffected.
During 2004 the Group exchanged 49.6 million pounds of the convertible
bonds due 2005 for bonds due 2024 in the same amount, leaving 9.8 million
pounds 2005 bonds outstanding. Under UK GAAP no gain or loss arose on the
exchange. However unamortised issue costs of 0.3 million pounds were written
off as a UK GAAP exceptional interest charge. Under IFRS the refinancing of
the 49.6 million pounds convertible is treated as an extinguishment of the
original debt and the issue of new debt recorded at fair value since the
discounted present value of the cash flows of the two instruments differ by
more than 10% (2005 Bond replaced by a 2024 Bond). The extinguishment and debt
issue costs lead to the additional exceptional interest charge of 6.2 million
pounds recorded in the IFRS income statement in 2004.
Fixed Asset Investments
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
IFRS/ UK GAAP Difference -- -- (543)
Under UK GAAP fixed asset investments are stated at the lower of cost and
net realisable value. Under IFRS most of SkyePharma's investments are
classified as 'Available for sale investments' and as such stated at fair
value with any unrealised gains or losses recorded in equity. The IFRS
restatement reduces net assets at 31 December 2004 by 0.5 million pounds and
does not effect the income statement.
Other Financial Instruments
Operating Retained Net
Year to 31 December 2004 Loss Loss Assets
(All figures in pounds Sterling) '000 '000 '000
IFRS/ UK GAAP Difference (516) (516) (162)
Under UK GAAP, periodic gains and losses on interest and foreign currency
derivatives designated as hedges are not recognised until the operational
transactions to which they are linked occur. No derivatives have been
designated as hedges under IFRS and therefore in accordance with IAS 39 such
instruments have been recognised at fair value at the balance sheet date with
gains and losses being recorded in the income statement. SkyePharma is
adopting full retrospective application of IAS 32 and IAS 39 and has therefore
restated its opening balance and 2004 result accordingly. This restatement has
led to an additional charge to the 2004 income statement of 0.5 million
pounds, increasing both operating and retained loss. As at 31 December 2004
the IFRS restatement reduces net assets by 0.2 million pounds.
Other Differences
Other differences relate primarily to the Company's pension scheme in
France. In accordance with IFRS1, the Group has fully recognised all actuarial
gains and losses on its pension scheme in France at 1 January 2004, its
transition date. Subject to the endorsement by the European Union of IAS 19
(revised), ongoing actuarial gains and losses will be recognised in the
Statement of Recognised Income and Expenditure.
Under IFRS the Group is required to capitalise research and development
costs when the criteria laid out in IAS 38 are met. The Group has reviewed its
historical research and development projects and determined that no
expenditure incurred to date meets the criteria for capitalisation in IAS 38.
However the Group will continue to review its development expenditure against
the relevant criteria and will capitalise such expenditure when it is
appropriate.
Income Statement
Year ended 31 December 2004
(All figures in pounds Sterling)
IFRS
UK GAAP Adjustments IFRS
(Unaudited)
'000 '000 '000
----- ----- -----
Revenue 62,168 13,052 75,220
Cost of sales (31,154) 2,977 (28,177)
----- ----- -----
Gross profit 31,014 16,029 47,043
Other operating income 1,237 (1,237) --
Selling, marketing and distribution
expenses (1,728) -- (1,728)
Administration expenses
Amortisation (6,314) 4,136 (2,178)
Other administration expenses (16,937) (1,984) (18,921)
(23,251) 2,152 (21,099)
Research and development expenses (27,961) -- (27,961)
----- ----- -----
Operating (loss)/profit (20,689) 16,944 (3,745)
Profit on disposal of investment 2,021 -- 2,021
Share of post tax (loss)/ profit in
associate (16) 6 (10)
----- ----- -----
(Loss)/ profit on ordinary activities
before interest and taxation (18,684) 16,950 (1,734)
Interest receivable 758 42 800
Interest payable (6,122) (16,498) (22,620)
----- ----- -----
(Loss)/ profit on ordinary activities
before taxation (24,048) 494 (23,554)
Taxation (248) -- (248)
----- ----- -----
Retained (Loss)/ profit (24,296) 494 (23,802)
----- ----- -----
Earnings per Ordinary Share
Basic (3.9p) -- (3.9p)
Diluted (3.9p) -- (3.9p)
======== ======== ========
Income Statement Adjustments (Unaudited)
Year ended 31 December 2004
(All figures in pounds Sterling)
Sale of Share Convertible
Revenue royalty based Amortisation bonds -
recognition interests payment of goodwill Interest
'000 '000 '000 '000 '000
----- ----- ----- ----- -----
Revenue 13,052 -- -- -- --
Cost of sales -- 2,977 -- -- --
----- ----- ----- ----- -----
Gross profit 13,052 2,977 -- -- --
Other operating
income -- (1,237) -- -- --
Selling,
marketing
and distribution
expenses -- -- -- -- --
Administration
expenses
Amortisation -- -- -- 4,136 --
Other administration
expenses -- 1,292 (2,837) -- --
-- 1,292 (2,837) 4,136 --
Research and
development
expenses -- -- -- -- --
----- ----- ----- ----- -----
Operating
(loss)/profit 13,052 3,032 (2,837) 4,136 --
Profit on disposal
of investment -- -- -- -- --
Share of post
tax (loss)/
profit in
associate -- -- -- -- --
----- ----- ----- ----- -----
(Loss)/ profit
on ordinary
activities
before interest
and taxation 13,052 3,032 (2,837) 4,136 --
Interest
receivable -- -- -- -- --
Interest payable -- (9,986) -- -- (309)
----- ----- ----- ----- -----
Loss on
ordinary
activities
before taxation 13,052 (6,954) (2,837) 4,136 (309)
Taxation -- -- -- -- --
----- ----- ----- ----- -----
Retained Loss 13,052 (6,954) (2,837) 4,136 (309)
----- ----- ----- ----- -----
Earnings per
Ordinary Share
Basic 2.1p (1.1p) (0.5p) 0.7p (0.1p)
Diluted 2.1p (1.1p) (0.5p) 0.7p (0.1p)
======= ====== ======= ======== =========
Convertible Other
bonds - financial Total IFRS
Exceptional instruments Other Adjustments
'000 '000 '000 '000
----- ----- ---- -----
Revenue -- -- -- 13,052
Cost of sales -- -- -- 2,977
----- ----- ---- -----
Gross profit -- -- -- 16,029
Other operating
income -- -- -- (1,237)
Selling, marketing and
distribution expenses -- -- -- --
Administration
expenses
Amortisation -- -- -- 4,136
Other administration
expenses -- (516) 77 (1,984)
-- (516) 77 2,152
Research and
development expenses -- -- -- --
----- ----- ---- -----
Operating (loss)/ profit -- (516) 77 16,944
Profit on disposal of
investment -- -- -- --
Share of post tax
(loss)/ profit
in associate -- -- 6 6
----- ----- ---- -----
(Loss)/ profit on
ordinary activities
before interest and
taxation -- (516) 83 16,950
Interest receivable -- -- 42 42
Interest payable (6,174) -- (29) (16,498)
----- ----- ---- -----
Loss on ordinary
activities
before taxation (6,174) (516) 96 494
Taxation -- -- -- --
----- ----- ---- -----
Retained Loss (6,174) (516) 96 494
----- ----- ---- -----
Earnings per
Ordinary Share
Basic (1.0p) (0.1p) -- --
Diluted (1.0p) (0.1p) -- --
========= ========== ====== ==========
Consolidated Balance Sheet
Year ended 31 December 2004
(All figures in pounds Sterling)
UK IFRS
GAAP Adjustments IFRS
(Unaudited)
'000 '000 '000
----- ----- -----
Fixed assets
Intangible assets 91,519 4,136 95,655
Property, plant and equipment 40,628 -- 40,628
Investments 20,104 (537) 19,567
----- ----- -----
152,251 3,599 155,850
----- ----- -----
Current assets
Inventories 1,531 -- 1,531
Trade and other receivables
Due within one year 19,093 (1,329) 17,764
Due after more than one year 770 -- 770
Financial assets 1,093 -- 1,093
Cash and cash equivalents 15,337 -- 15,337
----- ----- -----
37,824 (1,329) 36,495
----- ----- -----
Current liabilities
Financial liabilities:
Borrowings (3,876) (7,009) (10,885)
Convertible bonds due June 2005 (9,774) 333 (9,441)
Trade and other payables (20,610) -- (20,610)
Deferred income (14,291) 2,483 (11,808)
----- ----- -----
(48,551) (4,193) (52,744)
----- ----- -----
Net current assets/(liabilities) (10,727) (5,522) (16,249)
----- ----- -----
Non-current liabilities
Financial liabilities:
Borrowings -- (42,187) (42,187)
Convertible bonds due May 2024 (66,478) 16,096 (50,382)
Other non-current liabilities (10,462) -- (10,462)
Deferred income (250) (2,072) (2,322)
Provisions (711) (277) (988)
----- ----- -----
(77,901) (28,440) (106,341)
----- ----- -----
Net assets 63,623 (30,363) 33,260
========= ========= =========
Shareholders' equity
Ordinary shares 63,440 -- 63,440
Share premium 320,980 -- 320,980
Other reserves 9,350 23,062 32,412
Retained earnings (330,147) (53,425) (383,572)
----- ----- -----
Total equity
Attributable to equity interests 52,313 (30,363) 21,950
Attributable to non-equity interests 11,310 -- 11,310
----- ----- -----
63,623 (30,363) 33,260
========= ========= =========
Consolidated Balance Sheet Adjustments (Unaudited)
Year ended 31 December 2004
(All figures in pounds Sterling)
Sale of
Revenue royalty Amortisation Convertible
recognition interests of goodwill bonds
'000 '000 '000 '000
----- ----- ----- -----
Fixed assets
Intangible assets -- -- 4,136 --
Property, plant
and equipment -- -- -- --
Investments -- -- -- --
----- ----- ----- -----
- - 4,136 --
----- ----- ----- -----
Current assets
Inventories -- -- -- --
Trade and other receivables
Due within one year -- (1,329) -- --
Due after more than
one year -- -- -- --
Financial assets -- -- -- --
Cash and cash equivalents -- -- -- --
----- ----- ----- -----
-- (1,329) -- --
----- ----- ----- -----
Current liabilities
Financial liabilities:
Borrowings -- (6,847) -- --
Convertible bonds due
June 2005 -- -- -- 333
Trade and other payables -- -- -- --
Deferred income (4,655) 7,138 -- --
----- ----- ----- -----
(4,655) 291 -- 333
----- ----- ----- -----
Net current
assets/(liabilities) (4,655) (1,038) -- 333
Non-current liabilities
Financial liabilities:
Borrowings -- (42,187) -- --
Convertible bonds due
May 2024 -- -- -- 16,096
Other non-current
liabilities -- -- -- --
Deferred income (2,072) -- -- --
Provisions -- -- -- --
----- ----- ----- -----
(2,072) (42,187) -- 16,096
----- ----- ----- -----
Net assets (6,727) (43,225) 4,136 16,429
========= ========= ========= =========
Shareholders' equity
Ordinary shares -- -- -- --
Share premium -- -- -- --
Other reserves -- -- -- 23,062
Retained earnings (6,727) (43,225) 4,136 (6,633)
----- ----- ----- -----
Total equity
Attributable to
equity interests (6,727) (43,225) 4,136 16,429
Attributable to
non-equity interests -- -- -- --
----- ----- ----- -----
(6,727) (43,225) 4,136 16,429
========= ========= ========= =========
Fixed Other
asset financial Total IFRS
investments instruments Other Adjustments
'000 '000 '000 '000
----- ----- ----- -----
Fixed assets
Intangible assets -- -- -- 4,136
Property, plant and
equipment -- -- -- --
Investments (543) -- 6 (537)
----- ----- ----- -----
(543) -- 6 3,599
----- ----- ----- -----
Current assets
Inventories -- -- -- --
Trade and other receivables
Due within one year -- -- -- (1,329)
Due after more than
one year -- -- -- --
Financial assets -- -- -- --
Cash and cash equivalents -- -- -- --
----- ----- ----- -----
-- -- -- (1,329)
----- ----- ----- -----
Current liabilities
Financial liabilities:
Borrowings -- (162) -- (7,009)
Convertible bonds
due June 2005 -- -- -- 333
Trade and other payables -- -- -- --
Deferred income -- -- -- 2, 483
----- ----- ----- -----
-- (162) -- (4,193)
----- ----- ----- -----
Net current
assets/(liabilities) -- (162) -- (5,522)
Non-current liabilities
Financial liabilities:
Borrowings -- -- -- (42,187)
Convertible bonds
due May 2024 -- -- -- 16,096
Other non-current
liabilities -- -- -- --
Deferred income -- -- -- (2,072)
Provisions -- -- (277) (277)
----- ----- ----- -----
-- -- (277) (28,440)
----- ----- ----- -----
Net assets (543) (162) (271) (30,363)
========= ========= ========= =========
Shareholders' equity
Ordinary shares -- -- -- --
Share premium -- -- -- --
Other reserves -- -- -- 23,062
Retained earnings (543) (162) (271) (53,425)
----- ----- ----- -----
Total equity
Attributable to equity
interests (543) (162) (271) (30,363)
Attributable to
non-equity interests -- -- -- --
----- ----- ----- -----
(543) (162) (271) (30,363)
========= ========= ========= =========
SOURCE SkyePharma PLC
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Related links:
http://www.skyepharma.com
CONTACT:
SkyePharma PLC, +44-207-491-1777, or Donald
Nicholson, Finance Director or Peter Laing, Director of Corporate
Communications, +44-207-491- 5124, or Sandra Haughton, US
Investor Relations, +1-212-753-5780, all of SkyePharma PLC; or
Tim Anderson, Mark Court, or Rebecca Skye Dietrich, all of
Buchanan Communications, +44-207-466-5000, for SkyePharma PLC
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