Oxeco Announcements

Oxeco PLC
28 September 2007

Embargo 7.00am 28 September 2007

Oxeco Plc

Unaudited Interim accounts for the period from incorporation on 17 October 2006
to 31 July 2007
Chairman's Statement

Your company was established in October 2006 and was admitted to trading on AIM
in December of that year with a net £2.84 million raised in cash and a stated
strategy of seeking investments in or acquiring assets, businesses or companies
in the technology and science sectors.
The Group's unaudited loss before tax for the period from incorporation on 17
October 2006 to 31 July 2007 was £3,000 and total equity shareholders funds at
the period end amounted to £4.93 million including cash balances of £2.81
million.
Oxeco Plc acquired the entire issued share capital of Oxray Limited ("Oxray") on
29 June 2007. Oxray is currently a start up business with the objective of
becoming a provider of molecular structure determination services to both
industry and academic institutions. This is to be achieved by developing novel
molecular structure determination software in-house, in-licensing IP and
potentially making acquisitions in this field.
The total consideration payable for Oxray was approximately £2.1 million
satisfied by the issue new Ordinary Shares with a value of £2.0m and the cash
settlement of related acquisition costs amounting to £0.1m.
On completion of the acquisition, I joined the Board as of Executive Chairman,
Professor Stephen Davies joined as a Non-executive Director and Professor Graham
Richards changed his role from Non-executive Chairman to that of Non-executive
Director.
Oxray's primary objectives are the development of novel X-ray crystallography
structure determination software and the provision of a small-molecule X-ray
crystallography structure service. The service will use a web portal behind
which the company will work to maximise the extent to which the service can be
automated. The company intends to offer standardised response times to its
customers but will also market premium services such as a fast-response and
extended scientific reporting suitable to support customers' patent
applications.
Following completion of the acquisition of Oxray, your Directors intend to
continue to identify opportunities they believe fulfill the Company's original
objectives of investing in the technology and science sectors and especially
those which are complementary to the Company's enlarged business.
I am confident that your Company will make considerable progress during 2007/
2008.
Jussi Westergren
Non-Executive Chairman
OXECO PLC

UNAUITED INCOME STATEMENT

For the period from incorporation on 17 October 2006 to 31 July 2007

Notes

2007

£'000
Administrative expenses (95)

Operating Loss (95)

Interest receivable 92

(LOSS) BERORE TAX (3)

Taxation 2 -

RETAINED LOSS FOR THE PERIOD (3)
EARNINGS PER SHARE 3 0.00p
Basic and Diluted
The loss for the period arises from the Group's continuing operations and
includes contributions from the acquisition of Oxray Ltd in June 2007 as set out
in note 7.
STATEMENT OF CHANGES IN EQUITY

For the period from incorporation on 17 October 2006 to 31 July 2007
Share Capital Share Premium Retained Loss Total Equity
£'000 £'000 £'000 £'000
At 17 October 2006 - - - -
Issue of shares 600 4,500 - 5,100
Expenses of issue of shares - (167) - (167)
Net loss for the period - - (3) (3)
At 31 July 2007 600 4,333 (3) 4,930

OXECO PLC

UNAUDITED BALANCE SHEET

At 31 July 2007

Notes 2007

£'000
ASSETS

Non-current assets
Property, plant and equipment 1

Goodwill 6 2,120
Total non-current assets 2,121

Current assets
Trade and other receivables
16
Cash and cash equivalents 2,816
Total current assets 2,832

TOTAL ASSETS 4,953

LIABILITIES
Current Liabilities
Trade and other payables (23)
Tax liabilities
-

TOTAL LIABILITIES (23)

NET ASSETS 4,930

EQUITY
Issued capital 4 600
Share premium 5 4,333
Revenue reserve (3)

TOTAL EQUITY SHAREHOLDERS' FUNDS 4,930

Approved by the Board and authorised for issue on 27 September 2007.
J P Westergren M A Bretherton

Chairman Finance Director


OXECO PLC

UNAUDITED CASH FLOW STATEMENT

For the period from incorporation on 17 October 2006 to 31 July 2007
2007

£'000
OPERATING ACTIVITIES
Operating loss (95)
(Increase) in trade and other receivables (16)
(Decrease)/increase in trade and other payables (30)

Net cash outflow from operations (141)

INVESTING ACTIVITIES
Acquisition of subsidiaries (see note 7) (100)
Cash and bank in subsidiaries at acquisition (see note 7)
32

Net cash outflow from investing activities
(68)

FINANCING ACTIVITIES
Proceeds from issue of share capital 3,100
Expenses of issue of share capital (167)
Interest received 92

Net cash inflow from financing activities 3,025

INCREASE IN CASH AND CASH EQUIVALENTS 2,816

Cash and cash equivalents at 17 October 2006 -

CASH AND CASH EQUIVALENTS 2,816
AT 31 JULY 2007

OXECO PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1) SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The interim financial statements of Oxeco Plc are unaudited condensed
consolidated financial statements for the period from incorporation on 17
October 2006 to 31 July 2007.
The condensed consolidated financial statements have been prepared under the
historic cost convention and incorporate the financials of Oxeco Plc for the
period and its subsidiary undertaking from the date of acquisition.
The condensed interim consolidated financial statements do not constitute
statutory accounts.

Property, plant and equipment
Property, plant and equipment assets are stated at historical cost less
depreciation provided at rates calculated to write each asset down to its
estimated residual value evenly over its expected useful life.

Financial Assets and Liabilities

Trade and other receivables
Trade and other receivables do not carry any interest and are stated at their
nominal value as reduced by appropriate allowances for estimated irrecoverable
amounts.
Trade and other payables
Trade and other payables are not interest bearing and are stated at their
nominal value.

Cash and cash equivalents
Cash and cash equivalents comprise cash at hand and deposits on a term of not
greater than 3 months.
2) TAXATION

The tax expense represents the sum of the tax currently payable and deferred
tax.

The tax currently payable is based on taxable profit for the period. The
Company's liability for current tax is calculated by using tax rates that have
been enacted or substantively enacted by the balance sheet date.

3) LOSS PER SHARE
Basic loss per share is based on the net loss for the period of £ 3,000
attributable to equity holders of the parent divided by the weighted average
number of ordinary shares in issue during the period of 353,658,537.

OXECO PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENT
4) SHARE CAPITAL Number £'000

Authorised:

Ordinary shares of 0.1p 1,000,000,000 1,000

Allotted, issued and fully paid:

Ordinary shares of 0.1p 600,000,000 600

The Company was incorporated on 17 October 2006, on which date the authorised
share capital was £1,000,000 divided into 1,000,000,000 shares of 0.1p each, 2
of which were issued at par value.
On 19 October 2006 the Company allotted and issued 99,999,998 shares of 0.1p
each for cash at par value.
On 21 December 2006 the Company placed 300,000,000 shares of 0.1p each on the
Alternative Investment Market (AIM) each at a price of 1p, resulting in a share
premium of £2,700,000.
On 29 June 2007 the company allotted 200,000,000 shares of 1p in connection with
the acquisition by the Company of the entire issued share capital of Oxray Ltd,
resulting in a share premium of £ 1,800,000.

5) SHARE PREMIUM ACCOUNT 2007
£'000

At 17 October 2007 -
Premium on issue of shares in the period (see note 4) 4,500
Expenses of issue of shares (167)

At 31st July 2007 4,333


6) GOODWILL 2007
£'000

At 17 October 2006 -

Arising on acquisition of subsidiaries (see note 7) 2,120

At 31st July 2007 2,120
OXECO PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENT

7) PURCHASE OF SUBSIDIARY UNDERTAKINGS

On the 29th June 2007, the Company acquired 100% of the issued share capital of
Oxray Ltd by issue of 200,000,000 new ordinary shares at 1 pence per share for a
value of £ 2,000,000 together with the settlement in cash of costs of £ 100,042.
This acquisition has been accounted for by the purchase method of accounting as
summarised below.
Period ended 31 July 2007 Oxray Ltd
£'000
Net assets / (liabilities) acquired (100%)
Fixed assets 1

Cash
32
Other net liabilities
(53)
Net liabilities acquired (20)
Goodwill on acquisition
2,120
Total Consideration
2,100
Satisfied by:
Issue of shares
2,000
Cash
100
Total
2,100
For the period between the date of acquisition and 31 July 2007, Oxray did not
contribute any revenues but the loss before tax contribution amounted to £
9,858. If Oxray had been consolidated for the full period from incorporation of
Oxeco on 17 October 2006 to 31 July 2007, the loss before tax contribution of
Oxray would have been £ 122,409
8) RELATED PARTY TRANSACTIONS
During the period group companies entered into the following transactions with
Ora Capital Partners Plc which as at 31 July 2007 holds 45.25% of the issued
share capital of Oxeco Plc.
2007
£'000

Management consultancy fees charged by Ora Capital Partners Plc in the period 7

Directors' Interests

Directors' interests in Ora Capital Partners Plc. The directors had investments
in Ora as follows as at 31 July 2007:
Director % of issued share
capital of Ora held

David Norwood 4.25%

Michael Bretherton 0.08%

David Norwood and Michael Bretherton are also directors of Ora
Capital Partners Plc.
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