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Company International Medical Devices PLC
TIDM INT
Headline Final Results
Released 07:00 23-Nov-05
Number 5212U



INTERNATIONAL MEDICAL DEVICES PLC

ANNOUNCEMENT OF PRELIMINARY RESULTS FOR THE PERIOD ENDED 31 AUGUST 2005







HIGHLIGHTS



· Board delivers on strategy

· Acquisitions of Technology Patents and Distribution Rights

· Acquisition of a UK distributor

· Equity fundraising of £750,000









CHAIRMAN’S STATEMENT



On behalf of the Board of International Medical Devices PLC (“IMD�), I am pleased to inform you that IMD has made real progress for the year ended 31st August 2005 and beyond.



Following admission to AIM on the 10th November 2004, IMD announced on the 24th June 2005 that the company had conditionally agreed to acquire a range of Technology Patents from Eastland Technology Australia Limited (“ETA�) and acquired Distribution Rights over a portfolio in excess of 1,200 Eastland Medical Systems Limited (“EMS�) products. The consideration for the acquisition of the Technology Patents was satisfied by the payment of £300,000 in cash and the issue of 55,160,000 new Ordinary shares to ETA. The consideration for the acquisition of the Distribution Rights was satisfied by the issue of 40,500,000 new Ordinary shares to EMS. In addition. £750,000 was raised by way of placing of 12,500,000 new Ordinary shares of 1p each at 6p per share.



These transactions were voted on and approved at the Extraordinary General Meeting held on 18th July 2005.



In my June 2005 letter to shareholders, I clearly outlined the strategy that is now being actively implemented. Notably that IMD would seek to make acquisitions of established medical device distribution businesses in order to provide access to market for both the EMS product portfolios in the near term, and the exploitation of the ETA patents via the product launch of safe needle product over the next two years.



The first acquisition was announced to the exchange on the 19th September 2005. IMD acquired the entire share capital of Meddis Limited, a niche distributor of acute care medical devises including catheters, wound drainage systems and ophthalmic scalpels. Meddis Limited, based in Wallingford, near Oxford employs 8 people including a sales force of 5 professionals and supplies both to the NHS central purchasing and logistics organisation, the Purchasing And Supply Agency (PASA) and direct to hospital trusts with accounts throughout the UK. This acquisition cost £400,000 of which £200,000 was issued as new ordinary shares at 10p.



The acquisition of Meddis Limited represents the first step in IMD’s ambition to put in place a European medical device distribution network through which the company will sell its portfolio of products in particular the safe needle product lines:



· “Clip-on�

· “Safeline�

· “Autoinjecta�

· “Reversyringe�

· “Retra-lok�



This strategy is currently being coined out in Meddis Limited where EMS patented thorassic drainage products are currently being launched following PASA approval.



The Board is continuing to examine other acquisitions products in line with the IMD strategy and I look forward to announcing further growth in the Company.

Results and Dividends

The operating loss for the year on all operations was £316,067.

No dividend is recommended.



Funding

In the period the company raised £750,000 in a private placement of 12,500,000 Ordinary shares of 1p each at a price of 6p.



As at 31st August 2005, cash at Bank was £363,299.



Conclusion

Having made its first acquisition of an operating medical device distributor, IMD can look forward to an exciting growth phase over the next 12 months. The Board remains confident that the market climate for the launch of safe needle products is increasingly encouraging the following Unison’s recent success in winning a court case against the Scottish NHS. Unison took a test case, involving two ambulance paramedics, to the court of session in Edinburgh last year. Three appeal judges ruled that the NHS in Scotland could not refuse to introduce safety syringes on cost grounds alone as this breached European Health and Safety Laws.



It is against this background that IMD continues to plan the product launch of its safe needle portfolio with the next 24 months.



Lindsay C. S. Sanford

Chairman

Monday 21 November 2005













PROFIT AND LOSS ACCOUNT

for the period ended 31 August 2005







2005




£






ADMINISTRATION EXPENSES





(322,564)









OPERATING LOSS





(322,564)









INTEREST RECEIVABLE





6,497





LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION



(316,067)






TAXATION ON LOSS ON ORDINARY ACTIVITIES





-





LOSS ON ORDINARY ACTIVITIES AFTER TAXATION FOR THE FINANCIAL PERIOD



(316,067)

















Loss per ordinary share





(0.01249)









Diluted loss per ordinary share





(0.01248)



There were no other gains or losses other than those recognised in the profit and loss account.





RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS

for the period ended 31 August 2005




2005




£






Loss for the financial period


(316,067)

Issue of share capital


1,244,934

Premium on issue


7,577,867

Expenses on issue


(327,479)

Net increase in shareholders’ funds


8,179,255

Closing shareholders’ funds


8,179,255




BALANCE SHEET

as at 31 August 2005






2005







£


£








INTANGIBLE ASSETS








7,952,800












CURRENT ASSETS










Debtors





128,031




Cash at bank and in hand





363,299










491,330















CREDITORS: Amounts falling due within one year





(264,875)














CURRENT ASSETS





226,455












NET ASSETS








8,179,255











CAPITAL AND RESERVES







Share capital








1,244,934

Share premium account








7,250,388

Profit and loss account








(316,067)

EQUITY SHAREHOLDERS’ FUNDS








8,179,255




CASH FLOW STATEMENT

for the period ended 31 August 2005






2005




£

RECONCILIATION OF OPERATING LOSS TO NET CASH FLOW FROM OPERATING ACTIVITIES







Operating Loss





(322,564)

Increase in debtors





(128,031)

Increase in creditors





264,875

NET CASH OUTFLOW FROM OPERATING ACTIVITIES





(185,720)









RETURNS ON INVESTMENTS AND SERVICING OF FINANCE







Interest received





6,497








CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT





Purchase of Patents





(7,952,800)








NET CASH OUTFLOW BEFORE FINANCING



(8,132,023)








FINANCING





Issue of new share capital





8,822,801

Expenses on issuing of new share capital





(327,479)









INCREASE IN CASH IN THE PERIOD





363,299

















RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS





2005

£









Movement in cash in period





363,299

Net cash at 31 August 2005





363,299





NOTES:



1. The financial information in this announcement does not constitute statutory accounts as defined in section 240 of the companies Act 1985. The auditors have given an unqualified report that does note contain any statement under section 237(2) or (3) of the Companies Act 1985, on the statutory accounts for the year ended 31 August 2005.



2. Copies of the Company’s Report and Accounts will be sent to shareholders shortly and will be available at the registered office of the company: 3rd Floor, Windsor House, 55 St James’s Street, London SW1A 1LA.





END