Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | Midatech Pharma Plc |
Entity Central Index Key | 0001643918 |
Document Type | 20-F |
Trading Symbol | MTP |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Title of 12(b) Security | Ordinary Shares, nominal value 0.1p each |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity Emerging Growth Company | true |
Entity Reporting Status Current | Yes |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Ex Transition Period | false |
Entity Incorporation State Country Code | DE |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Revenue | £ 312 | £ 149 | £ 149 |
Grant revenue | 362 | 1,789 | 840 |
Total revenue | 674 | 1,938 | 989 |
Other income | 15 | ||
Research and development costs | (7,843) | (9,359) | (8,329) |
Distribution costs, sales and marketing | (323) | (170) | |
Administrative costs | (3,841) | (4,394) | (4,266) |
Impairment of intangible assets | (1,500) | ||
Loss from operations | (11,318) | (11,815) | (13,276) |
Finance income | 492 | 2 | 415 |
Finance expense | (97) | (587) | (166) |
Loss before tax | (10,923) | (12,400) | (12,970) |
Taxation | 1,785 | 2,032 | 1,265 |
Loss from continuing operations | (9,138) | (10,368) | (11,705) |
Loss from discontinued operations net of tax | (947) | (4,662) | (4,359) |
Loss for the year attributable to the owners of the parent | (10,085) | (15,030) | (16,064) |
Items that will or may be reclassified subsequently to profit or loss: | |||
Exchange (losses)/gains arising on translation of foreign operations | (207) | 1,156 | (1,233) |
Exchange losses realised on disposal of subsidiaries | (3,842) | ||
Total other comprehensive loss net of tax | (207) | (2,686) | (1,233) |
Total comprehensive loss attributable to the owners of the parent | £ (10,292) | £ (17,716) | £ (17,297) |
Continuing operations | |||
Basic and diluted loss per ordinary share - pence | £ (50) | £ (339) | £ (456) |
Discontinued operations | |||
Basic and diluted loss per ordinary share - pence | £ (5) | £ (153) | £ (170) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current assets | |||
Property, plant and equipment | £ 2,154 | £ 1,983 | £ 2,529 |
Intangible assets | 12,379 | 12,374 | 27,647 |
Other receivables due in greater than one year | 2,625 | 469 | 465 |
Total non-current assets | 17,158 | 14,826 | 30,641 |
Current assets | |||
Inventories | 941 | ||
Trade and other receivables | 992 | 1,323 | 3,242 |
Taxation | 1,817 | 1,952 | 1,196 |
Cash and cash equivalents | 10,928 | 2,343 | 13,204 |
Total current assets | 13,737 | 5,618 | 18,583 |
Total assets | 30,895 | 20,444 | 49,224 |
Non-current liabilities | |||
Borrowings | 5,670 | 884 | 6,185 |
Provisions | 165 | ||
Total non-current liabilities | 5,670 | 1,049 | 6,185 |
Current liabilities | |||
Trade and other payables | 4,494 | 2,103 | 8,002 |
Borrowings | 412 | 368 | 361 |
Provisions | 97 | ||
Derivative financial liability | 664 | ||
Total current liabilities | 5,667 | 2,471 | 8,363 |
Total liabilities | 11,337 | 3,520 | 14,548 |
Issued capital and reserves attributable to owners of the parent | |||
Share capital | 1,023 | 1,003 | 1,003 |
Share premium | 65,879 | 52,939 | 52,939 |
Merger reserve | 53,003 | 53,003 | 53,003 |
Foreign exchange reserve | (508) | (301) | 2,385 |
Accumulated deficit | (99,839) | (89,720) | (74,654) |
Total equity | 19,558 | 16,924 | 34,676 |
Total equity and liabilities | £ 30,895 | £ 20,444 | £ 49,224 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Loss for the year | £ (10,085) | £ (15,030) | £ (16,064) |
Adjustments for: | |||
Depreciation of property, plant and equipment | 979 | 1,016 | 983 |
Depreciation of right of use asset | 303 | ||
Amortisation of intangible fixed assets | 3 | 434 | 1,577 |
Loss on disposal of fixed assets | 165 | 27 | |
Impairment of intangible assets | 1,500 | ||
Finance income | (492) | (2) | (415) |
Finance expense | 97 | 587 | 166 |
Share-based payment expense | (34) | (36) | 520 |
Taxation | (1,785) | (2,032) | (1,265) |
Loss on sale of subsidiary | 1,407 | ||
Loss from discontinued operations, net of tax | 947 | ||
Foreign exchange (gains)/losses | (140) | 130 | |
Cash flows from operating activities before changes in working capital | (10,207) | (13,361) | (12,971) |
Decrease/(Increase) in inventories | 347 | (202) | |
Decrease/(Increase) in trade and other receivables | 725 | 1,030 | (968) |
Increase/(Decrease) in trade and other payables | 1,141 | (2,995) | (267) |
(Decrease)/Increase in provisions | (68) | 165 | |
Cash used in operations | (8,409) | (14,814) | (14,408) |
Taxes received | 1,920 | 1,364 | 1,455 |
Net cash used in operating activities | (6,489) | (13,450) | (12,953) |
Investing activities | |||
Purchases of property, plant and equipment | (310) | (244) | (707) |
Proceeds from disposal of fixed assets | 25 | ||
Purchase of intangibles | (9) | (778) | |
Long term deposit for guarantee for Government loan | (2,549) | ||
Disposal of discontinued operation, net of cash disposed of | 9,259 | ||
Deposit paid in connection with disposed subsidiary | (947) | ||
Interest received | 8 | 2 | 15 |
Net cash (used in)/ generated from investing activities | (3,807) | 9,042 | (1,470) |
Financing activities | |||
Interest paid | (30) | (587) | (111) |
Receipts from sub-lessors | 107 | ||
Amounts paid on lease liabilities (2018, 2017: Amounts paid on finance leases) | (450) | (64) | (25) |
Repayment of borrowings | (577) | (5,821) | (552) |
Proceeds from bank borrowings | 5,237 | ||
Proceeds from Government loan | 4,436 | ||
Proceeds from Government subsidy | 1,139 | ||
Share issues including warrants, net of costs | 14,108 | 5,728 | |
Net cash generated from/(used in) financing activities | 18,733 | (6,472) | 10,277 |
Net increase/(decrease) in cash and cash equivalents | 8,437 | (10,880) | (4,146) |
Cash and cash equivalents at beginning of year | 2,343 | 13,204 | 17,608 |
Exchange gains/(losses) on cash and cash equivalents | 148 | 19 | (258) |
Cash and cash equivalents at end of year | £ 10,928 | £ 2,343 | £ 13,204 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - GBP (£) £ in Thousands | Share Capital [Member] | Share Premium [Member] | Merger Reserve [Member] | Foreign Exchange Reserve [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Dec. 31, 2016 | £ 1,002 | £ 47,211 | £ 53,003 | £ 3,618 | £ (59,110) | £ 45,724 |
Changes in equity [Roll Forward] | ||||||
Loss for the year | (16,064) | (16,064) | ||||
Reclassification of foreign exchange on disposal | ||||||
Foreign exchange translation | (1,233) | (1,233) | ||||
Total comprehensive loss | (1,233) | (16,064) | (17,297) | |||
Transactions with owners | ||||||
Shares issued on 16 October 2017 - note 16 | 1 | 6,157 | 6,158 | |||
Costs associated with share issue - note 16 | (429) | (429) | ||||
Share-based payment charge | 520 | 520 | ||||
Total contribution by and distributions to owners | 1 | 5,728 | 520 | 6,249 | ||
Ending balance at Dec. 31, 2017 | 1,003 | 52,939 | 53,003 | 2,385 | (74,654) | 34,676 |
Changes in equity [Roll Forward] | ||||||
Loss for the year | (15,030) | (15,030) | ||||
Reclassification of foreign exchange on disposal | (3,842) | (3,842) | ||||
Foreign exchange translation | 1,156 | 1,156 | ||||
Total comprehensive loss | (2,686) | (15,030) | (17,716) | |||
Transactions with owners | ||||||
Share-based payment charge | (36) | (36) | ||||
Total contribution by and distributions to owners | (36) | (36) | ||||
Ending balance at Dec. 31, 2018 | 1,003 | 52,939 | 53,003 | (301) | (89,720) | 16,924 |
Changes in equity [Roll Forward] | ||||||
Loss for the year | (10,085) | (10,085) | ||||
Reclassification of foreign exchange on disposal | ||||||
Foreign exchange translation | (207) | (207) | ||||
Total comprehensive loss | 1,003 | 52,939 | 53,003 | (508) | (99,805) | (10,292) |
Transactions with owners | ||||||
Shares issued on 26 February 2019 - note 16 | 17 | 13,388 | 13,405 | |||
Costs associated with share issue on 26 February 2019 - note 16 | (1,120) | (1,120) | ||||
Shares issued on 29 October 2019 - note 16 | 3 | 1,211 | 1,214 | |||
Costs associated with share issue on 29 October 2019 - note 16 | (539) | (539) | ||||
Share-based payment charge | (34) | (34) | ||||
Total contribution by and distributions to owners | 20 | 12,940 | (34) | 12,926 | ||
Ending balance at Dec. 31, 2019 | £ 1,023 | £ 65,879 | £ 53,003 | £ (508) | £ (99,839) | £ 19,558 |
1 Accounting policies
1 Accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
Accounting policies | 1 Accounting policies General information Midatech Pharma plc (the ‘Company’) is a company registered and domiciled in England and Wales. The Company was incorporated on 12 September 2014. The Company is a public limited company, which has been listed on the Alternative Investment Market (‘AIM’), which is a submarket of the London Stock Exchange, since 8 December 2014. In addition, since 4 December 2015 the Company has American Depository Receipts (‘ADRs’) registered with the US Securities and Exchange Commission (‘SEC’) and is listed on the NASDAQ Capital Market. The financial statements were approved and authorised for issue by the Board of Directors on 12 June 2020. Basis of preparation The Group was formed on 31 October 2014 when Midatech Pharma plc entered into an agreement to acquire the entire share capital of Midatech Limited and its wholly owned subsidiaries through the issue equivalent of shares in the Company which took place on 13 November 2014. These financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (‘adopted IFRSs’) and are presented in £’000’s Sterling, unless stated otherwise. The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the periods presented. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This will change from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. The financial statements reflect the effects of the reverse stock split/share resolutions for all periods presented. The consolidated financial statements have been prepared on a historical cost basis, except for the following item (refer to individual accounting policies for details): - Financial instruments – fair value through profit or loss. Adoption of new and revised standards New standards, interpretations and amendments effective from 1 January 2019 New standards impacting the Group that were adopted in the annual financial statements for the year ended 31 December 2019, and which have given rise to changes in the Group’s accounting policies are: · IFRS 16 Leases (IFRS 16); and · IFRIC 23 Uncertainty over Income Tax Treatments (IFRIC 23) Details of the impact these two standards have had are given in note 32 below. Other new and amended standards and Interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group’s activities or require accounting which is consistent with the Group’s current accounting policies. New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2020: · IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment – Definition of Material) · IFRS 3 Business Combinations (Amendment – Definition of Business) · Revised Conceptual Framework for Financial Reporting These new accounting standard amendments are not expected to have a material impact on the group. In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after 1 January 2022. The Group is currently assessing the impact of this new accounting standard amendment. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the group. Basis for consolidation The Group financial statements consolidate those of the parent company and all of its subsidiaries. The parent controls a subsidiary if it has power over the investee to significantly direct the activities, exposure, or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. All subsidiaries have a reporting date of 31 December. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. The loss and other comprehensive income of Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc) acquired in December 2015 is recognised from the effective date of acquisition i.e. 4 December 2015 through to the date of sale on 1 November 2018. Similarly, the loss and other comprehensive income of Zuplenz®, acquired as a business by Midatech Pharma plc, is recognised from 24 December 2015 until 31 October 2018 (up to the formal completion of the sale of MPUS on 1 November 2018). Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the re-measurement to fair value less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations. The consolidated financial statements consist of the results of the following entities: Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) Trading company PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Trading company Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 Trading company Dara Therapeutics, Inc. (until 1 November 2018) Dormant Going concern The Group and parent company are subject to a number of risks similar to those of other development and early-commercial stage pharmaceutical companies. These risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing and obtaining related regulatory approvals of its pipeline products. Ultimately, the attainment of profitable operations is dependent on future uncertain events which include obtaining adequate financing to fulfil the Group’s commercial and development activities and generating a level of revenue adequate to support the Group’s cost structure. On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. As of the date of these Financial Statements, the Group’s operations have been significantly curtailed temporarily due to restrictions imposed by governments. The Group cannot reasonably estimate the length or severity of this pandemic and related restrictions. Some factors from the COVID-19 outbreak that the company believe will adversely affect current and planned drug development activities include: · the diversion of healthcare resources away from the conduct of clinical trial matters to focus on pandemic concerns, including the attention of physicians serving as our clinical trial investigators, hospitals serving as our clinical trial sites and hospital staff supporting the conduct of our clinical trials; · limitations on travel that interrupt key trial activities, such as clinical trial site initiations and monitoring; · interruption in global shipping affecting the transport of clinical trial materials, such as investigational drug product used in our trials; and · employee absences that delay necessary interactions with local regulators, ethics committees and other important agencies and contractors. We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develop our portfolio. For the year ended December 31, 2019, the Company incurred a consolidated loss from operations of £10.1 million and negative cash flows from operations of £6.5 million. As of December 31, 2019, the Group had an accumulated deficit of £99.8 million. The Company's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2019, we had cash and cash equivalents of £10.93 million. In May 2020, we completed an equity offering, raising £3.7m net of costs. We believe we currently have enough cash to fund our planned operations into the second quarter of 2021. Our future viability is dependent on our ability to generate cash from operating activities, to raise additional capital to finance our operations and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue its business strategies. For example, due to our current and forecasted cash position, on 31 March 2020, we made the decision to abandon certain of our research and development programs, close our Spanish operations and make certain terminations within our UK operations. In connection with our strategic review announced on the same date, we are in the process of seeking to license or assign one or more of our technologies to a partner or, alternatively, to seek a buyer for our Company. Any or all of these transactions may be on unfavorable terms. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next five years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required before the second quarter of 2021 assuming, inter alia, that all development programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. In addition, the global spread of the pandemic COVID-19 virus places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people will likely cause delays to some of our plans. The scale of the impact of COVID-19 is evolving and it is difficult to assess to what extent, and for how long, it will cause delays to our operations. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. In addition to utilizing the existing cash reserves, as part of our ongoing strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets and technologies or the sale of the Company. After considering the uncertainties, we consider it is appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. Revenue Revenue is accounted for in line with principles of IFRS 15 ‘Revenue from contracts with customers’ Revenue from licensing agreements The Group entered into a Licence Agreement during 2019. The licence consists of two distinct performance conditions, which is the grant of the license to use of its intellectual property (“IP”) and the supply of Product. After the Company has granted the license, and the Product is granted applicable marketing authorizations in the EU, the US, or the UK, France, Germany or Switzerland and China, there are no further obligations to participate in, or provide additional services to its customer. The transaction price for the grant of the license to use the Company’s IP comprises of fixed and variable payment streams and the grant of the license is considered to be a right to use IP. Upfront fees earned, are recognised as revenue at a point in time, upon transfer of control over the license to the licensee and the grant of the applicable marketing authorisation by the relevant statutory authority. Revenue from variable consideration, which is contingent on achievements of future milestones is recognised as revenue when it is highly probable the revenue will not reverse, that is when the underlying contingencies have been resolved. For future royalty payments associated with a license, the Company applies the IFRS 15 exception for sales-based royalties and recognises the revenue only when the subsequent sale occurs. Supply of Goods Revenue from sales of goods to customer are recognised when all performance obligations are met. These criteria are considered to be met when the goods are delivered to the customer. Revenue represents the full list price of products shipped to wholesalers and other customers less product returns, discounts, rebates and other incentives based on the sales price. Supply of Services Revenue from the supply of services is subject to specific agreement. This is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. Milestones The Group’s revenue also include milestone income from research and development contracts. Milestone income is recognised as revenue in the accounting period in which the milestones are achieved. Milestones are agreed on a project by project basis and will be evidenced by set deliverables. Grant revenue Where grant income is received, which is not a direct re-imbursement of related costs and at the point at which the conditions have been met for recognition as income, this has been shown within grant revenue. Government grants and government loans Where government grants are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as the expenditure towards which they are intended to contribute. The Group receives government loans that have a below-market rate of interest. These loans are recognised and measured in accordance with IFRS 9. The benefit of the below-market rate of interest is measured as the difference between the initial carrying value of the loan discounted at a market rate of interest and the proceeds received. The difference is held within deferred revenue as a government grant and is released as a credit to grant income or to research and development expense in line with the expenditure to which it relates. In a situation where the proceeds were invested in plant and equipment, the deferred revenue is credited to research and development within the income statement in line with the depreciation of the acquired asset. Business combinations and externally acquired intangible assets Business combinations are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the acquisition date, being: · the fair value of the consideration transferred to the seller, plus; · the amount of any non-controlling interest in the acquiree, plus; · if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the acquisition date, less; · the fair value of the net identifiable assets acquired and assumed liabilities. Acquisition costs incurred are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability, will be recognised either as a profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it is not re-measured. An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable or when it arises from contractual or other legal rights. Externally acquired intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives where they are in use. The amortisation expense is included within the distribution costs, sales and marketing in the consolidated statement of comprehensive income. Goodwill is stated at cost less any accumulated impairment losses. The amounts ascribed to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques (see section related to critical estimates and judgements below). In-process research and development (‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development costs below are not met. IPRD is subject to annual impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development capitalisation as set out below. As per IFRS 3, once the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life. The product and marketing rights recognised in 2017 related to various licenses, the Group held via its US subsidiary. These rights were disposed of with the sale of the subsidiary. The significant intangibles recognised by the Group and their useful economic lives are as follows: Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years Product and marketing rights – Between 2 and 12 years The useful economic life of IPRD will be determined when the in-process research projects are completed. Amortisation of product and marketing rights ceased in June 2018 when the US entity was classified as held for sale. Internally generated intangible assets (development costs) Expenditure on the research phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied: · completion of the asset is technically feasible so that it will be available for use or sale; · the Group intends to complete the asset and use or sell it; · the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); · there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and · the expenditure attributable to the asset during its development can be measured reliably. Judgement is applied when deciding whether the recognition criteria are met. Judgements are based on the information available. In addition, all internal activities related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country. Development expenditure not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive Income as incurred. No projects have yet reached the point of capitalisation. Impairment of non-financial assets Assets that have an indefinite useful life, for example goodwill, or intangible assets not ready for use, such as IPRD, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. An impairment charge of £1.5m was recognised in 2017 against the IPRD of the Midatech Pharma (Wales) Ltd cash generating unit within continuing operations. Please refer to Note 33 Post Balance Sheet Events, for potential impairment charges during 2020. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). After the disposal of the US operation on 1 November 2018, the Group at 31 December 2019 had only one cash generating unit (2018: one, 2017: two), as set out in note 13. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of impairment at each reporting date. Impairment charges are included in profit or loss, except, where applicable, to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed. Patents and trademarks The costs incurred in establishing patents and trademarks are either expensed in accordance with the corresponding treatment of the development expenditure for the product to which they relate or capitalised if the development expenditure to which they relate has reached the point of capitalisation as an intangible asset. Joint arrangements The Group is a party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries. The Group classifies its interests in joint arrangements as either: · Joint ventures: where the Group has rights to only the net assets of the joint arrangement; or · Joint operations: where the Group has both the rights to assets and obligations for the liabilities of the joint arrangement. In assessing the classification of interests in joint arrangements, the Group considers: · the structure of the joint arrangement; · the legal form of joint arrangements structured through a separate vehicle; · the contractual terms of the joint arrangement agreement; and · any other facts and circumstances (including any other contractual arrangements). The results and assets and liabilities of joint ventures are incorporated in the financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in a joint venture is recognised initially in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the joint venture. When the Group’s share of losses of a joint venture exceeds the Group’s interest in that joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture. Foreign currency Transactions entered into by subsidiary entities in a currency other than the currency of the primary economic environment, in which they operate, are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. The presentational currency of the Group is Pounds Sterling, and the reporting currency is also Pounds Sterling. Foreign subsidiaries use the local currencies of the country where they operate. On consolidation, the results of overseas operations are translated into Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in the profit or loss of Group entities on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation. On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the gain or loss on disposal. Financial assets and liabilities Assets at amortised cost The Group does not have any financial assets which it would classify as fair value through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. For impairment provisions, the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk and ageing. Based on the scale of this area, our historic treatment is not materially different to the simplified approach under IFRS 9. The expected loss rates are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss rates are then adjusted for current and forward-looking information on macroeconomic factors. The Group’s assets at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. Cash and cash equivalents include cash in hand, deposits held at call with original maturities of three months or less. Financial liabilities The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22. Other financial liabilities include the following items: · Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. · Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development expenditure or grant income in line with when the asset or expenditure is recognised in the income statement. · Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. Share capital Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group has two classes of share in existence: · ordinary shares of £0.00005 each are classified as equity instruments; · deferred shares of £1 each are classified as equity instruments. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it’s ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company. The change in the number of shares resulting from the reverse stock split and change in the number of Depositary Shares resulting from the change in ratio has been applied retroactively to all share and per share amounts presented in this annual report, to the extent applicable. Retirement benefits: defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate. Provisions Provisions are recognised when the |
2 Critical accounting estimates
2 Critical accounting estimates and judgements | 12 Months Ended |
Dec. 31, 2019 | |
Critical Accounting Estimates And Judgements | |
Critical accounting estimates and judgements | 2 Critical accounting estimates and judgements The preparation of these consolidated financial statements requires the Group to make estimates, assumptions and judgments that can have a significant impact on the reported amounts of assets and liabilities, revenue and expenses and related disclosure of contingent assets and liabilities, at the respective dates of our financial statements. The Group bases its estimates, assumptions and judgments on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. Management evaluates estimates, assumptions and judgments on a regular basis and makes changes accordingly, and discusses critical accounting estimates with the board of Directors. The following are considered to be critical accounting estimates: Impairment of goodwill and intangible assets not yet ready for use Goodwill and intangibles not yet ready for use are tested for impairment at the cash generating unit level on an annual basis at the year end and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a cash generating unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of cash generating units, assignment of assets and liabilities to such units, assignment of goodwill to such units and determination of the fair value of a unit and for intangible assets not yet ready for use, the fair value of the asset. The fair value of each cash generating unit or asset is estimated using the income approach, on a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, including for revenues and development costs, estimation of the long term rate of growth for the business, estimation of the useful life over which cash flows will occur and determination of our weighted-average cost of capital. The carrying value of goodwill was £2.3m and intangibles not yet ready for use was £10.1m as at 31 December 2019 (note 12). The estimates used to calculate the fair value of a cash generating unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for each such unit. Based on the analysis performed, there was no impairment of the goodwill in the years ended 31 December 2019, 2018 or 2017, and there was no impairment charge against the IPRD of the Midatech Pharma (Wales) Ltd cash generating unit (2018: £Nil; 2017: £1.5m ). See note 12 and 13. Please refer to Note 33 Post Balance Sheet Events, for potential impairment charges during 2020. Share-based payments The Group accounts for share-based payment transactions for employees in accordance with IFRS 2 Share-based Payment, which requires the measurement of the cost of employee services received in exchange for the options on our ordinary shares, based on the fair value of the award on the grant date. The Directors selected the Black-Scholes-Merton option pricing model as the most appropriate method for determining the estimated fair value of our share-based awards without market conditions. For performance-based options that include vesting conditions relating to the market performance of our ordinary shares, a Monte Carlo pricing model was used in order to reflect the valuation impact of price hurdles that have to be met as conditions to vesting. The resulting cost of an equity incentive award is recognised as expense over the requisite service period of the award, which is usually the vesting period. Compensation expense is recognised over the vesting period using the straight-line method and classified in the consolidated statements of comprehensive income. The assumptions used for estimating fair value for share-based payment transactions are disclosed in note 27 to our consolidated financial statements and are estimated as follows: · volatility is estimated based on the average annualised volatility of a number of publicly traded peer companies in the biotech sector; · the estimated life of the option is estimated to be until the first exercise period, which is typically the month after the option vests; and · the dividend return is estimated by reference to our historical dividend payments. Currently, this is estimated to be zero as no dividend has been paid in the prior periods. The following are considered to be critical accounting judgments: Income taxes Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and the level of future taxable profits together with future tax planning strategies. In 2019, there were approximately £49.6m of gross unutilised tax losses carried forward (2018: £40.7m, 2017: £38.4m). No deferred tax asset has been provided in respect of these losses as there was insufficient evidence to support their recoverability in future periods. Research and development costs Research and development costs are charged to expense as incurred and are typically made up of salaries and benefits, clinical and preclinical activities, drug development and manufacturing costs, and third-party service fees, including for clinical research organizations and investigative sites. Costs for certain development activities, such as clinical trials, are periodically recognised as intangible assets based on an evaluation of the progress to completion of specific tasks using data such as patient enrolment, clinical site activations, or information provided by vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the financial statements as prepaid or accrued expenses. Leases IFRS 16 defines the lease term as the non-cancellable period of a lease together with the options to extend or terminate a lease, if the lessee were reasonably certain to exercise that option. This will take into account the length of time remaining before the option is exercisable, current trading, future trading forecasts as to the ongoing profitability of the organisation and the level and type of planned future capital investment. The judgement is reassessed at each reporting period. A reassessment of the remaining life of the lease could result in a recalculation of the lease liability and a material adjustment to the associated balances. The discount rate used in the calculation of the lease liability involves estimation. The discount rate used is the incremental borrowing rate. This rates represents the rate the Group would have had to pay to borrow, over a similar term and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. During 2019 Management considered the appropriate life of a new property lease entered into in Spain. The lease is for an initial period of 5 years, however the lease allows the Group to break the lease at any-time with one-month notice, provided it returns the property to its original condition. At 31 December 2019, Management assessed it was reasonably certain the expected life of the lease would be 5 years. Discontinued Operations Under the terms of the Sale Agreement the Group agreed to indemnify the Purchaser against, inter alia, any liability related to any prescription drug user fee amounts owed to the United States Food and Drug Administration (“FDA”) under the Prescription Drug Fee User Act (“PDUFA”) by MPUS for the United States government’s fiscal year ended 30 September 2018. MPUS had successfully obtained waivers for user fees for all prior fiscal periods in which it was liable under PDUFA and entered into the Sale Agreement with the Purchaser confident that a further waiver would be obtained. However, during 2019 MPUS sought approval from the FDA for a filing relating to one of its commercial products and was informed by the FDA that the approval would not be forthcoming whilst the PDUFA fee remained unpaid. Consequently, MPUS paid the PDUFA fee of £0.95m and then, in accordance with the terms of the SPA, Midatech deposited the same amount with MPUS, pending completion of the waiver application process. At 30 June 2019 Management considered the amount recoverable from MPUS, this was based on the waiver application process being on-going and the historical success MPUS have had in obtaining the waiver. At 31 December 2019 Management reconsidered the recoverability of the sum paid under the warranty, and although the waiver process is still on-going, Management concluded, based on third party advice, that the probability of successfully achieving the waiver had diminished and therefore have taken the decision to expense the cost of the warranty claim in the second half of 2019. Going Concern We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develop our portfolio. For the year ended December 31, 2019, the Company incurred a consolidated loss from operations of £10.1 million and negative cash flows from operations of £6.5 million. As of December 31, 2019, the Group had an accumulated deficit of £99.8 million. The Company's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2019, we had cash and cash equivalents of £10.93 million. In May 2020, we completed an equity offering, raising £3.7m net of costs. We believe we currently have enough cash to fund our planned operations into the second quarter of 2021. Our future viability is dependent on our ability to generate cash from operating activities, to raise additional capital to finance our operations and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue its business strategies. For example, due to our current and forecasted cash position, on 31 March 2020, we made the decision to abandon certain of our research and development programs, close our Spanish operations and make certain terminations within our UK operations. In connection with our strategic review announced on the same date, we are in the process of seeking to license or assign one or more of our technologies to a partner or, alternatively, to seek a buyer for our Company. Any or all of these transactions may be on unfavorable terms. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next five years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required before the second quarter of 2021 assuming, inter alia, that all development programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our financial statements as of and for the year ended December 31, 2019 with respect to this uncertainty. In addition, the global spread of the pandemic COVID-19 virus places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people will likely cause delays to some of our plans. The scale of the impact of COVID-19 is evolving and it is difficult to assess to what extent, and for how long, it will cause delays to our operations. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. In addition to utilizing the existing cash reserves, as part of our ongoing strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets and technologies or the sale of the Company. After considering the uncertainties, we consider it is appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. |
3 Segment Information
3 Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Segment Information | 3 Segment Information Revenue from contracts with customers Geographical analysis of revenue by destination of customer 2019 £’000 2018 £’000 2017 £’000 Revenue from continuing operations: United Kingdom 197 149 79 Rest of Europe 55 – 70 Rest of the World 60 – – 312 149 149 Revenue from discontinued operations United States – 3,882 6,609 In 2019, all revenue from continuing operations came from 3 customers (2018: 1 customer; 2017: 3 customers). Within revenue from discontinued operations for 2018, reported in the consolidated statement of comprehensive income under loss from discontinued operations, four customers each accounted for at least 10% of revenue from discontinued operations (2017: three customers): 2019 £’000 2018 £’000 2017 £’000 Customer A 63 % 100 % 55 % Customer B 19 % - - Customer C 18 % - - Following the disposal of the US commercial business, the Group contains one reportable operating segment, Pipeline Research and Development (‘Pipeline R&D’). This segment seeks to develop products using the Group’s nanomedicine and sustained release technology platforms. The accounting policies of the reportable segments are consistent with the Group’s accounting policies described in note 1. Segment results represent the result of each segment without the allocation of head office expenses, interest expense, interest income and tax. No measures of segment assets and segment liabilities are reported to the Group’s Board of Directors in order to assess performance and allocate resources. There is no intersegment activity and all revenue is generated from external customers. Both the UK and Spanish entities meet the aggregation criteria and have therefore been presented as a single reportable segment under Pipeline R&D. The research and development activities involve the discovery and development of pharmaceutical products in the field of nanomedicine and sustained release technology. The US operating company was engaged in the sale and marketing of cancer supportive care products and was reported historically under the Commercial segment. In the following segmented results tables, depreciation and amortisation allocated to research and development costs, and administrative costs in the consolidated statements of comprehensive income, are presented separately. Segmented results for the year ended 31 December 2019 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 312 – 312 Grant revenue 362 – 362 Total revenue 674 – 674 Other income 15 – 15 Cost of sales – – - Research and development costs (6,624 ) – (6,624 ) Distribution costs, sales and marketing (323 ) – (323 ) Administrative costs (3,775 ) – (3,775 ) Loss from discontinued operations, net of tax – (947 ) (947 ) Depreciation (1,282 ) – (1,282 ) Amortisation (3 ) – (3 ) Loss from operations (11,318 ) (947 ) (12,265 ) Finance income 492 – 492 Finance expense (97 ) – (97 ) Loss before tax (10,923 ) (947 ) (11,870 ) Taxation 1,785 – 1,785 Loss for the year (9,138 ) (947 ) (10,085 ) Loss from continuing operations (9,138 ) Loss from discontinued operations (947 ) Segmented results for the year ended 31 December 2018 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 149 3,882 4,031 Grant revenue 1,789 – 1,789 Total revenue 1,938 3,882 5,820 Cost of sales – (1,286 ) (1,286 ) Research and development costs (8,555 ) (283 ) (8,838 ) Distribution costs, sales and marketing – (4,357 ) (4,357 ) Administrative costs (4,087 ) (872 ) (4,959 ) Loss on disposal of discontinued operations – (1,407 ) (1,407 ) Depreciation (1,011 ) (5 ) (1,016 ) Amortisation (100 ) (334 ) (434 ) Loss from operations (11,815 ) (4,662 ) (16,477 ) Finance income 2 – 2 Finance expense (587 ) – (587 ) Loss before tax (12,400 ) (4,662 ) (17,062 ) Taxation 2,032 – 2,032 Loss for the year (10,368 ) (4,662 ) (15,030 ) Loss from continuing operations (10,368 ) Loss from discontinued operations (4,662 ) Segmented results for the year ended 31 December 2017 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 149 6,609 6,758 Grant revenue 840 – 840 Total revenue 989 6,609 7,598 Cost of sales – (926 ) (926 ) Research and development costs (7,355 ) (356 ) (7,711 ) Distribution costs, sales and marketing (170 ) (7,477 ) (7,647 ) Administrative costs (4,266 ) (566 ) (4,832 ) Depreciation (974 ) (9 ) (983 ) Amortisation – (1,577 ) (1,577 ) Impairment of intangible assets (1,500 ) – (1,500 ) Loss from operations (13,276 ) (4,302 ) (17,578 ) Finance income 415 – 415 Finance expense (109 ) (57 ) (166 ) Loss before tax (12,970 ) (4,359 ) (17,329 ) Taxation 1,265 – 1,265 Loss for the year (11,705 ) (4,359 ) (16,064 ) Loss from continuing operations (11,705 ) Loss from discontinued operations (4,359 ) Non-current assets by location of assets 2019 £’000 2018 £’000 2017 £’000 Spain 4,383 1,860 2,154 United Kingdom 12,775 12,966 15,331 United States – – 13,156 17,158 14,826 30,641 All material additions to non-current assets in 2019, 2018 and 2017 were in the Pipeline R&D segment. |
4 Discontinued operations
4 Discontinued operations | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Discontinued operations | 4 Discontinued operations During 2018 the group made the decision to sell its Commercial business based in the US. The sale completed on 1 November 2018 to Barings LLC, a member of the MassMutual Financial Group, for total consideration of up to $19m. This included $6m of consideration contingent payable on the achievement of various net revenue milestones for the MPUS business for the financial years 2018 and 2019. MPUS did not achieve the net revenue milestones in either 2018 or 2019, as a result no contingent consideration was received during 2019. During 2019 a claim was made by MPUS under the warranties provided by Midatech under the disposal agreement, see note 2. The statement of cash flows includes the following amounts relating to discontinued operations: 2019 £’000 2018 £’000 Cash consideration received – 9,350 Other consideration received – – Total consideration received – 9,350 Cash disposed of – (91 ) Net cash inflow on disposal of discontinued operation – 9,259 Net assets disposed (other than cash): – 3 Property, plant and equipment – 15,662 Intangibles – 948 Inventory – 629 Trade and other payables – (2,734 ) Total net assets disposed of (other than cash) – (14,508 ) Loss on disposal of discontinued operation before and after tax – (5,249 ) Foreign exchange gain realised on disposal – 3,842 Loss on disposal – (1,407 ) The post-tax loss on disposal of discontinued operations was determined as follows: Result of discontinued operations 2019 £’000 2018 £’000 2017 £’000 Revenue – 3,882 6,609 Expenses other than finance costs (947 ) (7,137 ) (10,911 ) Finance costs – – (57 ) Impairment – – – Loss from discontinued operations before tax (947 ) (3,255 ) (4,359 ) Taxation – – – Loss on disposal of discontinued operations – (1,407 ) – Loss for the year from discontinued operations after tax (947 ) (4,662 ) (4,359 ) Statement of cash flows 2019 £’000 2018 £’000 2017 £’000 The statement of cash flows includes the following amounts relating to Operating activities – (5,368 ) (1,654 ) Investing activities (947 ) – – Financing activities – (7 ) (34 ) Net cash flow from discontinued operations (947 ) (5,375 ) (1,688 ) |
5 Loss from operations
5 Loss from operations | 12 Months Ended |
Dec. 31, 2019 | |
Loss From Operations | |
Loss from operations | 5 Loss from operations 2019 £’000 2018 £’000 2017 £’000 Loss from operations is stated after charging/(crediting): Changes in inventories of finished goods and work in progress – (976 ) 202 Depreciation of property, plant and equipment – From continuing operations 979 1,011 974 – From discontinued operations – 5 9 Depreciation of right of use asset – From continuing operations 303 – – – From discontinued operations – – – Amortisation of intangible assets – product and marketing rights – From continuing operations 3 100 193 – From discontinued operations – 334 1,384 Impairment of intangible assets – – 1,500 Fees payable to the Company’s auditor for the audit of the parent 110 111 110 Fees payable to the Company’s subsidiary auditors for the audits of the 48 143 140 Fees payable to the Company’s auditor for: – Other services 66 83 100 Operating lease expense: – Property – 386 277 – Plant and machinery – – – Arrangement/penalty fees for loan facility – 469 57 Foreign exchange(gain)/loss 131 212 (39 ) Loss on disposal of property, plant and equipment – 165 27 Equity settled share-based payment (34 ) (36 ) 520 Amortisation of product and marketing rights are included with distribution costs, sales and marketing expenses. Amortisation ceased when the assets were reclassified as held for sale on 30 June 2018 and were sold on 1 November 2018. |
6 Staff costs
6 Staff costs | 12 Months Ended |
Dec. 31, 2019 | |
Staff Costs | |
Staff costs | 6 Staff costs Staff costs (including Directors), for continuing and discontinued operations, comprise: 2019 £’000 2018 £’000 2017 £’000 Staff costs (including Directors) comprise: Wages and salaries 2,762 5,393 5,278 Defined contribution pension cost (note 26) 90 149 158 Social security contributions and similar taxes 565 639 643 Share-based payment (34 ) (36 ) 520 3,383 6,145 6,599 Continuing operations 3,383 4,352 4,578 Discontinued operations – 1,793 2,021 3,383 6,145 6,599 Employee numbers The average number of staff employed by the Group during the financial year, for continuing and discontinued operations, amounted to: 2019 2018 2017 Research and development 52 63 62 General and administration 13 16 17 Sales and marketing – 6 6 65 85 85 Key management personnel compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Company, and the Chief Operating Officer. 2019 £’000 2018 £’000 2017 £’000 Wages and salaries 656 900 811 Defined contribution pension cost 42 39 68 Payments made to third parties 82 142 142 Social security contributions and similar taxes 72 77 97 Benefits in kind 2 3 3 Share-based payment (58 ) (92 ) 388 796 1,069 1,509 Emoluments disclosed above include the following amounts in respect of the highest paid Director. 2019 £’000 2018 £’000 2017 £’000 Salary 266 110 299 Total pension and other post-employment benefit costs 22 4 10 Benefits in kind 1 1 1 Termination benefits - 99 – 289 214 310 None of the Directors have exercised share options during the year (2018: nil, 2017: nil). During the year 3 Directors (2018: 3, 2017: 2) participated in a defined contribution pension scheme. |
7 Finance income and expense
7 Finance income and expense | 12 Months Ended |
Dec. 31, 2019 | |
Finance Income And Expense | |
Finance income and expense | 7 Finance income and expense 2019 £’000 2018 £’000 2017 £’000 Finance income Interest received on bank deposits 8 2 15 Gain on equity settled derivative financial liability 484 – 400 Total finance income 492 2 415 The gain on the equity settled derivative financial liability in 2019 arose as a result of the reduction in share price. The gain in 2017 arose due to the reduction in the share price and the lapsing of associated warrants and options as set out in note 21. 2019 £’000 2018 £’000 2017 £’000 Finance expense Bank loans 6 587 18 Other loans 91 – 91 Total finance expense 97 587 109 |
8 Taxation
8 Taxation | 12 Months Ended |
Dec. 31, 2019 | |
Taxation Abstract | |
Taxation | 8 Taxation 2019 £’000 2018 £’000 2017 £’000 Current tax credit Current tax credited to the income statement 1,782 1,952 1,253 Taxation payable in respect of foreign subsidiary – (67 ) – Adjustment in respect of prior year 3 128 – 1,785 2,013 1,253 Deferred tax credit Reversal of temporary differences – 19 12 Total tax credit 1,785 2,032 1,265 There was no tax charge relating to discontinued operations for 2018 and 2017. The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows: 2019 £’000 2018 £’000 2017 £’000 Loss for the year, continuing and discontinued operations (10,085 ) (15,030 ) (16,064 ) Income tax credit – continuing operations (1,785 ) (2,032 ) (1,265 ) Loss before tax (11,870 ) (17,062 ) (17,329 ) Expected tax credit based on the standard rate of United Kingdom (2,255 ) (3,241 ) (3,336 ) Expenses not deductible for tax purposes 1,087 2,492 412 Unrelieved tax losses and other deductions (114 ) – – Adjustment in respect of prior period (3 ) (129 ) – Surrender of tax losses for R&D tax refund (1,810 ) (1,955 ) (1,196 ) Unrelieved tax losses and other deductions arising in the period – (220 ) (156 ) Foreign exchange differences 1 (26 ) (84 ) Deferred tax not recognised 1,309 1,047 3,095 Total tax credited to the income statement (1,785 ) (2,032 ) (1,265 ) The taxation credit arises on the enhanced research and development tax credits accrued for the respective periods. |
9 Loss per share
9 Loss per share | 12 Months Ended |
Dec. 31, 2019 | |
Loss Per Share | |
Loss per share | 9 Loss per share 2019 £’000 2018 £’000 2017 £’000 Numerator Loss used in basic EPS and diluted EPS: Continuing operations (9,138 ) (10,368 ) (11,705 ) Discontinued operations (947 ) (4,662 ) (4,359 ) Denominator Weighted average number of ordinary shares used in basic EPS: 18,330,588 3,056,303 2,565,866 Basic and diluted loss per share: Continuing operations – pence (50 )p (339 )p (456 )p Discontinued operations – pence (5 )p (153 )p (170 )p On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. The denominator has been calculated to reflect the share consolidation. The Group has made a loss in the current and previous years presented, and therefore the options and warrants are anti-dilutive. As a result, diluted earnings per share is presented on the same basis for all periods shown. |
10 Property, plant and equipmen
10 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 10 Property, plant and equipment Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Cost At 1 January 2017 228 1,999 281 3,050 – 5,558 Additions 18 41 57 591 – 707 Disposal – – – (41 ) – (41 ) Exchange differences 6 72 4 69 – 151 At 31 December 2017 252 2,112 342 3,669 – 6,375 Additions 4 106 40 353 – 503 Disposal (5 ) (229 ) – (401 ) – (635 ) Exchange differences 2 24 1 30 – 57 At 31 December 2018 253 2,013 383 3,651 – 6,300 Adoption of IFRS 16 Leases – – – – 395 395 Additions 4 137 23 223 822 1,209 Effect of modification to lease – – – – (82 ) (82 ) Exchange differences (9 ) (112 ) (3 ) (136 ) (11 ) (271 ) At 31 December 2019 248 2,038 403 3,738 1,124 7,551 Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Accumulated depreciation At 1 January 2017 149 872 122 1,649 – 2,792 Charge for the year 43 330 68 542 – 983 Disposals – – – (14 ) – (14 ) Exchange differences 4 36 2 43 – 85 At 31 December 2017 196 1,238 192 2,220 – 3,846 Charge for the year 43 403 72 499 – 1,016 Disposals – (175 ) (3 ) (421 ) – (599 ) Exchange differences 2 19 4 28 – 53 At 31 December 2018 241 1,485 265 2,326 – 4,317 Charge for the year 2 400 70 507 303 1,282 Exchange differences (8 ) (91 ) (3 ) (93 ) (7 ) (202 ) At 31 December 2019 235 1,794 332 2,740 296 5,397 Net book value At 31 December 2019 13 244 71 998 828 2,154 At 31 December 2018 12 528 118 1,325 – 1,983 At 31 December 2017 56 874 150 1,449 – 2,529 |
11 Leases
11 Leases | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Leases | 11 Leases All leases are accounted for by recognising a right-of-use asset and a lease liability except for: · Leases of low value assets; and · Leases with a duration of 12 months or less. IFRS 16 was adopted 1 January 2019 without restatement of comparative figures. For an explanation of the transitional requirements that were applied as at 1 January 2019, see Note 32. The following policies apply subsequent to the date of initial application, 1 January 2019. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the group’s incremental borrowing rate on commencement of the lease is used. Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for lease payments made at or before commencement of the lease. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease. When the group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. An equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss. The Group had previously entered into a sublease agreement to mitigate the impact of an otherwise onerous lease on the closure of its Abingdon site. This has been recognised as a lease receivable as the Group determined that the sublease meets the definition of a finance lease under the transitional provisions of IFRS16 and therefore, no right-of-use asset is recognised. Nature of leasing activities (in the capacity as lessee) The group leases a number of properties in the jurisdictions from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. Right of Use Asset Land and £’000 At 1 January 2019 395 Additions 822 Effect of modification to lease terms (82 ) Depreciation (303 ) Exchange differences (4 ) At 31 December 2019 828 Lease Liabilities Land and Buildings £’000 At 1 January 2019 546 Additions 822 Effect of modification to lease terms (82 ) Interest expenses 24 Lease payments (391 ) Exchange differences (12 ) At 31 December 2019 907 The group had commitments under non-cancellable operating leases as set out below, from 1 January 2019, the group has recognised right-of-use assets for these leases, exception for low value leases, see note 32 for further information. Land and Buildings £’000 Other £’000 2019 Expiring In one year or less - - Expiring between one and five years - - - - 2018 Expiring In one year or less 383 1 Expiring between one and five years 189 4 572 5 2017 Expiring In one year or less 449 8 Expiring between one and five years 359 32 808 40 |
12 Intangible assets
12 Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Intangible assets | 12 Intangible assets In-process £’000 Product and £’000 Goodwill £’000 IT/Website £’000 Total £’000 Cost At 1 January 2017 12,600 21,481 14,488 26 48,595 Additions 778 – – – 778 Foreign exchange – (1,625 ) (1,044 ) 1 (2,668 ) At 31 December 2017 13,378 19,856 13,444 27 46,705 Disposals – (21,022 ) (11,808 ) – (32,830 ) Foreign exchange – 1,166 655 1 1,822 At 31 December 2018 13,378 – 2,291 28 15,697 Additions – – – 9 9 Foreign exchange – – – (2 ) (2 ) At 31 December 2019 13,378 – 2,291 35 15,704 In-process research and development £’000 Product and marketing rights £’000 Goodwill £’000 IT/Website Costs £’000 Total £’000 Accumulated amortisation At 1 January 2017 1,800 15,608 – 15 17,423 Amortisation charge for the year – 1,574 – 3 1,577 Impairment 1,500 – – – 1,500 Foreign exchange – (1,443 ) – 1 (1,442 ) At 31 December 2017 3,300 15,739 – 19 19,058 Amortisation charge for the year – 431 – 3 434 Disposals – (17,103 ) – – (17,103 ) Foreign exchange – 933 – 1 934 At 31 December 2018 3,300 – – 23 3,323 Amortisation charge for the year – – – 3 3 Foreign exchange – – – (1 ) (1 ) At 31 December 2019 3,300 – – 25 3,325 Net book value At 31 December 2019 10,078 – 2,291 10 12,379 At 31 December 2018 10,078 – 2,291 5 12,374 At 31 December 2017 10,078 4,117 13,444 8 27,647 The individual intangible assets, excluding goodwill, which are material to the financial statements are: Carrying amount Remaining amortisation 2019 £’000 2018 £’000 2017 £’000 2019 (years) 2018 (years) 2017 (years) Midatech Pharma (Wales) Limited acquired IPRD 9,300 9,300 9,300 n/a in n/a in n/a in Midatech Pharma US, Inc., product and marketing – – 1,995 n/a n/a Between 1 and 3 Zuplenz® product and marketing rights – – 2,122 n/a n/a 11 MTX110 acquired IPRD 778 778 778 n/a in process n/a in process n/a in process 10,078 10,078 14,195 |
13 Impairment testing
13 Impairment testing | 12 Months Ended |
Dec. 31, 2019 | |
Impairment Testing | |
Impairment testing | 13 Impairment testing Midatech Pharma (Wales) Ltd Details of goodwill and IPRD allocated to the acquired cash generating unit and the valuation basis are as follows: Indefinite lived IPRD carrying amount Goodwill carrying amount Name 2019 £’000 2018 £’000 2017 £’000 2019 £’000 2018 £’000 2017 £’000 Valuation Basis CGU – Midatech Pharma (Wales) Ltd 9,300 9,300 9,300 2,291 2,291 2,291 Value in use The assets of the Midatech Pharma Wales Ltd (‘MPW’) CGU were valued as at 31 December 2019, 2018 and 2017 and were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using 12-13 year (2018: 12–13 year; 2018: 13-14 year), risk adjusted cash flow forecasts, in line with patent life, that have been approved by the Board. A period longer than 5 years is appropriate on the basis that the investment is long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used. In 2017 an impairment charge of £1.5m was recorded in the MPW CGU as a result of the impairment of the Opsisporin IPRD, primarily due to a strategic review concluding that the product is outside of Midatech’s strategic focus and as a result the decision was made not to continue with the programme at this point. At the same time the carrying value of a component of IPRD was reduced from £1.5m to nil. The resulting charge was shown separately within the consolidated statement of income. The key assumptions used in the valuation model examining the MPW Ltd cash generating unit include the following: Assumptions 2019 2018 2017 Pre-tax discount rate 18.4 % 17.7 % 17.9 % Cumulative probability of success of projects 81 % 81 % 81 % The discount rate is an estimated market-based weighted average cost of capital for the MPW business, determined at the date of acquisition. Cumulative probability of success of projects is the product of the probability of success of each remaining major phase of development for each individual IPRD component. These phase probabilities were determined by management with reference to the risks associated with each remaining development stage. Sensitivity analysis If any one of the following changes were made to the above key assumptions, the carrying value and recoverable amount would be equal. Assumptions 2019 2018 2017 Pre-tax discount rate for all projects increase to 21% increase to 29.8% increase to 21.0% Cumulative probability of success of project 59 % 34 % 57 % Refer to note 33 for post balance sheet event. |
14 Subsidiaries
14 Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiaries | |
Subsidiaries | 14 Subsidiaries The subsidiaries of Midatech Pharma plc, all of which are 100% owned, either directly or through subsidiaries where indicated, and have been included in these financial statements in accordance with the details set out in the basis of preparation and basis of consolidation note 1, are as follows: Name Registered Office Nature of Business Notes Midatech Limited Oddfellows House, 19 Newport Road, Cardiff, Trading company Midatech Pharma (España) SL Parque Tecnológico de Vizcaya, Edificio 800 Planta 2, Derio, 48160, Vizcaya, Spain Trading company (a) PharMida AG c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland Dormant (a) (b) Midatech Pharma (Wales) Oddfellows House, 19 Newport Road, Cardiff, Trading company Midatech Pharma PTY c/o Griffith Hack Consulting, 300 Queen Street, Brisbane, QLD 4000, Australia Trading company (c) Notes: (a) Wholly owned subsidiary of Midatech Limited. (b) PharMida AG became dormant in January 2016. (c) Midatech Pharma PTY was incorporated on 16 February 2015. |
15 Trade and other receivables
15 Trade and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 15 Trade and other receivables 2019 £’000 2018 £’000 2017 £’000 Trade receivables 22 89 2,232 Prepayments 151 139 627 Other receivables 3,444 1,564 848 Total trade and other receivables 3,617 1,792 3,707 Less: non-current portion (rental deposit and on bond) (2,625 ) (469 ) (465 ) Current portion 992 1,323 3,242 Trade and other receivables do not contain any impaired assets. The Group does not hold any collateral as security and the maximum exposure to credit risk at the consolidated statement of financial position date is the fair value of each class of receivable. Book values approximate to fair value at 31 December 2019, 2018 and 2017. During 2019 a cash-backed guarantee was provided to the Spanish Government in relation to a loan provided to the Group under its Reindustrialization programme, see note 19. The value of the guarantee will be reduced over the life of the loan once the value outstanding on the loan is equal to or less than the guarantee. The reductions will be in line with the repayments made. |
16 Cash and cash equivalents an
16 Cash and cash equivalents and cash flow supporting notes | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents and cash flow supporting notes | 16 Cash and cash equivalents and cash flow supporting notes Cash and cash equivalents for purposes of the consolidated statement of cash flows comprises: 2019 £’000 2018 £’000 2017 £’000 Cash at bank available on demand 10,928 2,343 13,204 During 2019 and 2017, cash inflows arose from equity financing transactions, included within financing activities on the face of the cash flow statement. As part of the equity transaction in October 2019 warrants to the value of £1.1m were issued as disclosed in note 21. 2019 £’000 2018 £’000 2017 £’000 Gross proceeds 15,767 – 6,157 Transaction costs (1,659 ) – (429 ) 14,108 – 5,728 The following changes in loans and borrowings arose as a result of financing activities during the year: Non-current £’000 Current £’000 Total £’000 At 1 January 2019 884 368 1,252 Cash flows 5,575 (1,027 ) 4,548 Non-cashflows: Foreign Exchange (42 ) (29 ) (71 ) Fair value changes (1,139 ) – (1,139 ) Adoption of IFRS16 leases 163 383 546 Effect of modification to lease term – IFRS 16 – (82 ) (82 ) New leases 805 95 900 Loans and borrowings classified as non-current 31 December 2018 (685 ) 685 – Transfer to grant income – (14 ) (14 ) Interest accruing in period 108 34 142 At 31 December 2019 5,670 412 6,082 Non-current £’000 Current £’000 Total £’000 At 1 January 2018 6,185 361 6,546 Cash flows (5,580 ) (305 ) (5,885 ) Non- cashflows: Foreign Exchange 296 4 300 New leases 168 76 244 Loans and borrowings classified as non-current 31 December 2018 (232 ) 232 – Interest accruing in period 47 – 47 At 31 December 2018 884 368 1,252 |
17 Inventories
17 Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Inventories Abstract | |
Inventories | 17 Inventories 2019 £’000 2018 £’000 2017 £’000 Finished goods – – 941 Total inventories – – 941 There was no stock held at 31 December 2019. In 2017 a reserve was maintained against inventory that was not expected to be sold before its sell by date. The resulting charge to the discontinued element of the comprehensive statement of income in 2017 was £151k. |
18 Trade and other payables
18 Trade and other payables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Trade and other payables | 18 Trade and other payables Current 2019 £’000 2018 £’000 2017 £’000 Trade payables 725 286 2,271 Other payables 13 – 1,141 Accruals 1,765 1,025 3,090 Total financial liabilities, excluding loans and borrowings, 2,503 1,311 6,502 Tax and social security 86 347 359 Deferred revenue and government grants 1,905 445 1,141 Total trade and other payables 4,494 2,103 8,002 Book values approximate to fair value at 31 December 2019, 2018 and 2017. All current trade and other payables are payable within 3 months of the period end date shown above. Government grants The Group received development grant funding from the European Union under the Horizon 2020 ‘Nanofacturing’ project, a European Union funded programme to develop a scalable manufacturing platform for the production of nanopharmaceutical products. Midatech participated in this programme, along with seven other entities, through two Group companies, Midatech Pharma España SL (‘MPE’), which acted as project coordinator, and Midatech Limited (‘MTL’). The project commenced in February 2015 and completed in January 2019. £124k (2018: £1,610k, 2017: £840k) of revenue has been recognised during the year in relation to this project and £nil (2018:£124k, 2017: £1.11m) of the deferred revenue balance relates to funds received but not yet recognised. |
19 Borrowings
19 Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Borrowings | 19 Borrowings 2019 £’000 2018 £’000 2017 £’000 Current Bank loans -– 4 11 Lease liabilities 233 80 39 Government and research loans 179 284 311 Total 412 368 361 Non-current Bank loans – – 5,207 Lease liabilities 912 170 29 Government and research loans 4,758 714 949 Total 5,670 884 6,185 Book values approximate to fair value at 31 December 2019, 2018 and 2017. Obligations under finance leases are secured by a fixed charge over the fixed assets to which they relate. Government loans in Spain In September 2019, Midatech Pharma España SL received €6.6m of funding awarded under the Spanish Government Reindustrialization programme, following it providing a €2.9 million cash-backed guarantee. The funds are to be used to support Midatech’s manufacturing scale-up facilities construction. The loan is a term loan which carries an interest rate below the market rate and is repayable over periods through to 2029. The loan carries a default interest rate in the event of scheduled repayments not being met. On initial recognition, the loan is discounted at a market rate of interest with the credit being classified as a grant within deferred revenue. The deferred grant revenue is released to the consolidated statement of comprehensive income within research and development costs in the period to which the expenditure is recognised. There are three other outstanding government loans which have been received by Midatech Pharma España SL for the finance of research, technical innovation and the construction of their laboratory. The loans are term loans which carry an interest rate below the market rate, and are repayable over periods through to 2024. The loans carry default interest rates in the event of scheduled repayments not being met. On initial recognition, the loans are discounted at a market rate of interest with the credit being classified as a grant within deferred revenue. The deferred grant revenue is released to the consolidated statement of comprehensive income within research and development costs in the period to which the expenditure is recognised. The deferred revenue element of the government loans is designated within note 18 as deferred revenue and Government grants, the gross contractual repayment of the loans is disclosed in note 22. Midcap Loan Facility In December 2017, Midatech Pharma entered into a secured loan agreement with Midcap Financial Trust (MidCap). The total facility was for $15m to be drawn down in three separate tranches. Interest was charged on the outstanding balance of the loan at an annual rate of LIBOR plus 7.5% subject to a LIBOR floor of 1.25%. MidCap was granted 12,394 warrants to purchase shares which was equal to 2% of the amount funded divided by the Exercise Price of £8.40. The Exercise Price was calculated as the average closing price for the 30-day period prior to the date of grant. The loan was secured against the assets of the Group. The first tranche of $7m was drawn down on 28 December 2017 and is disclosed under bank loans. This loan was repaid on 31 October 2018. |
20 Provisions
20 Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Provisions | 20 Provisions 2019 £’000 2018 £’000 2017 £’000 Opening provision at 1 January 165 – – Provision (released)/recognised in the year (68 ) 165 – At 31 December 97 165 – Less: non-current portion (rental deposit and bond) – (165 ) – Current portion 97 – – The provision relates to the ‘making good’ clause on the Abingdon office which was vacated in December 2018. The office has been sub-let for the remaining period of the lease, which terminated in February 2020. |
21 Derivative financial liabili
21 Derivative financial liability - current | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Liability - Current | |
Derivative financial liability - current | 21 Derivative financial liability – current 2019 £’000 2018 £’000 2017 £’000 Equity settled derivative financial liability – – – At 1 January – – 400 Warrants issued 1,148 – – Gain recognised in finance income within the consolidated statement (484 ) – (400 ) At 31 December 664 – – Equity settled derivative financial liability is a liability that is not to be settled for cash. In October 2019 the Group issued 3,150,000 warrants in the ordinary share capital of the company as part of a Registered Direct Offering. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account (‘FVTPL’). The financial liability is valued using the Monte Carlo model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22. A key input in the valuation of the instrument is the Company share price. At 31 December 2019 3,150,000 warrants were outstanding. The Group also assumed fully vested warrants and share options on the acquisition of DARA Biosciences, Inc. (which took place in 2015). The number of ordinary shares to be issued when exercised is fixed, however the exercise prices are denominated in US Dollars. The warrants are classified equity settled derivative financial liabilities and accounted for in the same way as those issued in October 2019. The financial liability is valued using the Black-Scholes option pricing model. At 31 December 2017 a further 8,302 options and 24,465 warrants had lapsed and the share price had fallen to £7.20 which results in a gain of £0.40m on re-measurement which was credited to finance income during 2017. At 31 December 2018 a further 8,846 options and 38,844 warrants had lapsed and the share price had fallen to £1.20. As the liability had already been reduced to zero there was no movement on re-measurement. At 31 December 2019 a further 3,332 options and 111,582 warrants had lapsed and the share price had fallen to £0.56. As the liability had already been reduced to zero there was no movement on re-measurement. |
22 Financial instruments - risk
22 Financial instruments - risk management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments - risk management | 22 Financial instruments – risk management The Group is exposed through its operations to the following financial risks: · Credit risk · Foreign exchange risk · Liquidity risk In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. The Board does not believe that its risk exposure to financial instruments, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note has changed in the past year. Principal financial instruments The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: · Trade and other receivables · Cash and cash equivalents · Trade and other payables · Accruals · Loans and borrowings · Derivative financial liability A summary of the financial instruments held by category is provided below: Financial assets – amortised cost 2019 £’000 2018 £’000 2017 £’000 Cash and cash equivalents 10,928 2,343 13,204 Trade receivables 22 89 2,232 Other receivables 2,625 469 465 Total financial assets 13,575 2,901 15,901 Financial liabilities – amortised cost 2019 £’000 2018 £’000 2017 £’000 Trade payables 725 286 2,271 Other payables 13 – 1,141 Accruals 1,765 1,025 3,090 Borrowings 6,082 1,252 6,546 Total financial liabilities – amortised cost 8,585 2,563 13,048 Financial liabilities – fair value through profit and loss – current 2019 £’000 2018 £’000 2017 £’000 Equity settled derivative financial liability 664 – – General objectives, policies and processes The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group’s management. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below: Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: · Level 1: quoted (unadjusted) prices in active markets for identical assets and liabilities; · Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and · Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data. The fair value of the Group’s derivative financial liability is measured at fair value on a recurring basis. The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 21: Financial Fair Fair value Valuation Significant unobservable Relationship of Equity settled £664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Financial Fair Fair value Valuation Significant unobservable Relationship of Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 42.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 7.6 years determined using the remaining life of the share options. The shorter the expected life the Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. The higher the Financial Fair Fair value Valuation Significant unobservable Relationship of Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 42.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 8.6 years determined using the remaining life of the share options. The shorter the expected life the Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. The higher the Changing the unobservable risk free rate input to the valuation model by 10% higher while all other variables were held constant, would not impact the carrying amount of shares (2018: nil, 2017: nil). There were no transfers between Level 1 and 2 in the period. The financial liability measured at fair value on Level 3 fair value measurement represents consideration relating to warrants issued in October 2019 as part of a Registered Direct offering and also a business combination. In 2018 and 2017 this only related to consideration relating to a business combination. Credit risk Credit risk is the risk of financial loss to the Group if a development partner or a counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from amounts due from collaborative partners which is deemed to be low. Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial institutions, only independently rated parties with high credit status are accepted. The Group does not enter into derivatives to manage credit risk. The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss. Quantitative disclosures of the credit risk exposure in relation to financial assets are set out in note 15. This includes details regarding trade and other receivables, which are neither past due nor impaired. The total exposure to credit risk of the Group is equal to the total value of the financial assets held at each year end as noted above. Cash in bank The Group is continually reviewing the credit risk associated with holding money on deposit in banks and seeks to mitigate this risk by holding deposits with banks with high credit status. Foreign exchange risk Foreign exchange risk arises because the Group has a material operation located in Bilbao, Spain, whose functional currency is not the same as the functional currency of the Group. The Group’s net assets arising from the overseas operation is exposed to currency risk resulting in gains or losses on retranslation into sterling. Given the levels of materiality, the Group does not hedge its net investments in overseas operations as the cost of doing so is disproportionate to the exposure. Foreign exchange risk also arises when individual Group entities enter into transactions denominated in a currency other than their functional currency; the Group’s transactions outside the UK to the US, Europe and Australia drive foreign exchange movements where suppliers invoice in currency other than sterling. These transactions are not hedged because the cost of doing so is disproportionate to the risk. The table below shows analysis of the Pounds Sterling equivalent of year-end cash and cash equivalent balances by currency: 2019 £’000 2018 £’000 2017 £’000 Cash and cash equivalents: Pounds Sterling 3,153 457 6,116 US Dollar 2,021 1,421 5,362 Euro 5,750 459 1,632 Other 4 6 94 Total 10,928 2,343 13,204 The table below shows the foreign currency exposure that gives rise to net currency gains and losses recognised in the consolidated statement of comprehensive income. Such exposures comprise the net monetary assets and monetary liabilities of the Group that are not denominated in the functional currency of the relevant Group entity. As at 31 December, these exposures were as follows: 2019 £’000 2018 £’000 2017 £’000 Net Foreign Currency Assets/(Liabilities): US Dollar 2,021 1,421 4,459 Euro 1,460 552 (362 ) Other 7 8 95 Total 3,488 1,981 4,192 Foreign currency sensitivity analysis The most significant currencies in which the Group transacts, other than Pounds Sterling, are the US Dollar and the Euro. The Group also trades in other currencies in small amounts as necessary. The following table details the Group’s sensitivity to a 10% change in year-end exchange rates, which the Group feels is the maximum likely change in rate based upon recent currency movements, in the key foreign currency exchange rates against Pounds Sterling: Year ended 31 December 2019 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 202 54 – Total equity 202 31 1 Year ended 31 December 2018 US Dollar £’000 Euro £’000 Other £’000 Loss before tax – 168 – Total equity 142 168 – Year ended 31 December 2017 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 307 (89 ) – Total equity 307 (89 ) – The sale of the Midatech Pharma US, Inc. operation prior to 31 December 2018 resulted in there not being any US Dollar denominated assets or liabilities to report on other than a US Dollar cash balance held by Midatech Pharma PLC. In management’s opinion, the sensitivity analysis for the year ended 31 December 2018 is unrepresentative of the inherent foreign exchange risk as the year-end exposure does not reflect the exposure during the year. Liquidity risk Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. It is the Group’s aim to settle balances as they become due. In February 2019, the Company completed a Subscription, Placing and Open Offer which raised £13.4m before costs. In October 2019, the Company completed a Registered Direct Offering which raised £2.4m before costs. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next five years including the period twelve months from the date of approval of the consolidated financial information. These forecasts show that further financing will be required during the course of the next four months assuming, inter alia, that all development programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. In addition, the global spread of the pandemic COVID-19 virus places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people will likely cause delays to some of our plans. The scale of the impact of COVID-19 is evolving and it is difficult to assess to what extent, and for how long, it will cause delays to our operations. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. In addition to utilizing the existing cash reserves, as part of our ongoing strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets and technologies or the sale of the Company. Therefore, after considering the uncertainties, we consider it is appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favourable terms or at all. The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: 2019 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 2,503 – – – – Bank loans – – – – – Lease liabilities 79 165 317 735 – Government research loans – 272 238 2,851 3,317 Total 2,582 437 555 3,586 3,317 2018 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,311 – – – – Bank loans 3 2 – – – Finance lease 22 65 79 117 – Government research loans 44 240 406 414 – Total 1,380 307 485 531 – 2017 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 6,502 – – – – Bank loans 120 359 2,201 3,926 – Finance lease 16 25 30 – – Government research loans 43 268 467 545 47 Total 6,681 649 2,698 4,471 47 More details with regard to the line items above are included in the respective notes: · Trade and other payables – note 18 · Borrowings – note 19 As a result of the Strategic Review undertaken in March 2020 as disclosed in note 33 the Group intends to repay the Government Research loans during 2020. Capital risk management The Group monitors capital which comprises all components of equity (i.e. share capital, share premium, foreign exchange reserve and accumulated deficit). The Group’s objectives when maintaining capital are: · to safeguard the entity’s ability to continue as a going concern; and · to have sufficient resource to take development projects forward towards commercialisation. The Group continues to incur substantial operating expenses. Until the Group generates positive net cash inflows from the commercialisation of its products it remains dependent upon additional funding through the injection of equity capital and government funding. The Group may not be able to generate positive net cash inflows in the future or to attract such additional required funding at all, or on suitable terms. In such circumstances the development programmes may be delayed or cancelled, and business operations cut back. The Group seeks to reduce this risk by keeping a tight control on expenditure, avoiding long term supplier contracts (other than clinical trials), prioritising development spend on products closest to potential revenue generation, obtaining government grants (where applicable), maintaining a focussed portfolio of products under development and keeping shareholders informed of progress. There have been no changes to the Group’s objectives, policies and processes for managing capital and what the Group manages as capital, unless otherwise stated in this note, since the previous year. |
23 Deferred tax
23 Deferred tax | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Tax | |
Deferred tax | 23 Deferred tax Deferred tax is calculated in full on temporary differences under the liability method using tax rates applicable in the tax jurisdictions where the tax asset or liability would arise. The movement on the deferred tax account is as shown below: 2019 £’000 2018 £’000 2017 £’000 Liability at 1 January – – – Arising on business combination – – – Credited to income on impairment and amortisation of intangibles – – – Credited to income statement – – – Foreign exchange gain – – – Liability at 31 December – – – The movement on the deferred tax account in 2019 is nil (2018: nil, 2017: nil) as the net credit arising on the amortisation of intangible assets and other timing differences has been matched by a reduction in the deferred tax asset recognised on the losses offsetting the liability remaining. Unused tax losses carried forward, subject to agreement with local tax authorities, were as follows: Gross losses £’000 Potential £’000 31 December 2019 49,565 8,426 31 December 2018 40,741 6,926 31 December 2017 38,377 6,639 With the exception of the £1.6m (2018: £1.7m, 2017: £2.6m) deferred tax asset which qualifies for offset against the deferred tax liability, mainly arising on the acquisitions of Midatech Pharma (Wales) Limited, the remaining potential deferred tax asset of £9.0m (2018 £7.3m, 2017: £9.5m) has not been provided in these accounts due to uncertainty as to whether the asset would be recovered. Details of the deferred tax liability are as follows: 2019 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,581 (1,581 ) – 2018 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,690 (1,690 ) – 2017 Asset £’000 Liability £’000 Net £’000 Business Combinations 2,599 (2,599 ) – |
24 Share capital
24 Share capital | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of classes of share capital [abstract] | |
Share capital | 24 Share capital Authorised, allotted and 2019 Number 2019 £ 2018 Number 2018 £ 2017 Number 2017 £ At 31 December Ordinary shares of 23,494,981 23,495 3,059,207 3,059 3,054,207 3,054 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,023,496 1,003,060 1,003,055 On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it’s ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. In accordance with the Articles of Association for the Company adopted on 13 November 2014, the share capital of the Company consists of an unlimited number of ordinary shares of nominal value 0.005 pence each. Ordinary and deferred shares were recorded as equity. Rights attaching to the shares following the incorporation of Midatech Pharma plc Shares classified as equity The holders of ordinary shares in the capital of the Company have the following rights: (a) to receive notice of, to attend and to vote at all general meetings of the Company, in which case shareholders shall have one vote for each share of which he is the holder; and, (b) to receive such dividend as is declared by the Board on each share held. The holders of deferred shares in the capital of the Company: (a) shall not be entitled to receive notice of or to attend or speak at any general meeting of the Company or to vote on any resolution to be proposed at any general meeting of the Company; and (b) shall not be entitled to receive any dividend or other distribution of out of the profits of the Company. In the event of a distribution of assets, the deferred shareholders shall receive the nominal amount paid up on such share after the holder of each ordinary share shall have received (in cash or specie) the amount paid up or credited as paid up on such ordinary share together with an additional payment of £100 per share. The Company has the authority to purchase the deferred shares and may require the holder of the deferred shares to sell them for a price not exceeding 1p for all the deferred shares. Ordinary Shares Number Deferred Shares Number Share £ Total £’000 At 1 January 2017 2,434,973 1,000,001 63,713 2017 19 May 2017 Share issue to SIPP trustee (see note 27) 1,000 – 0.001 – 16 October 2017 Placing and Open Offer (see note 16) 615,734 – 10.0 6,157 7 November 2017 Share issue to SIPP trustee (see note 27) 2,500 – 0.001 – At 31 December 2017 3,054,207 1,000,001 69,870 2018 1 August 2018 Share issue to SIPP trustee (see note 27) 5,000 – 0.001 – At 31 December 2018 3,059,207 1,000,001 69,870 2019 26 February 2019 Subscription, Placing and Open Offer 17,410,774 – 0.77 13,406 8 October 2019 Share issue to SIPP trustee (see note 27) 25,000 – 0.001 – 29 October 2019 Registered Direct Offering 3,000,000 – 0.7874 2,362 At 31 December 2019 23,494,981 1,000,001 85,638 |
25 Reserves
25 Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Reserves | |
Reserves | 25 Reserves The following describes the nature and purpose of each reserve within equity: Reserve Description and purpose Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling. Accumulated deficit All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
26 Retirement benefits
26 Retirement benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits | |
Retirement benefits | 26 Retirement benefits The Group operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are administered by trustees in funds independent from those of the Group. |
27 Share-based Payments
27 Share-based Payments | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payments | |
Share-based Payments | 27 Share-based payments Share Options The Group has issued options over ordinary shares under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme, the Midatech Pharma plc 2016 U.S. Option Plan, which is a sub-plan of the approved UK plan, and unapproved share options awarded to non-UK or non-US staff. In addition, certain share options originally issued over shares in Midatech Limited under the Midatech Limited 2008 unapproved share option scheme or Midatech Limited 2013 approved Enterprise Incentive scheme were reissued in 2015 over shares in Midatech Pharma plc under the 2014 Midatech Pharma plc Enterprise Management Incentive Scheme. Exercise of an option is subject to continued employment. Details of all share options granted under the Schemes are set out below: Date of grant At 1 January Granted in 2019 Exercised in Forfeited in At 31 December Exercise Price 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 21,500 – – (3,000 ) 18,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – (2,500 ) – £ 34.20 31 October 2016 23,411 – – (7,140 ) 16,271 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 1,625 – – – 1,625 £ 37.60 15 December 2016 4,600 – – – 4,600 £ 24.20 19 December 2016 35,866 – – (13,475 ) 22,391 £ 24.20 15 December 2017 45,885 – – (16,325 ) 29,560 £ 9.20 2 April 2018 997 – – – 997 £ 16.60 2 April 2018 4,500 – – – 4,500 £ 24.20 24 April 2019 – 219,000 – (49,500 ) 169,500 £ 1.46 2 October 2019 – 50,000 – – 50,000 £ 1.05 158,966 269,000 (91,940) 336,026 Options exercisable at 31 December 2019 131,094 Weighted average exercise price of outstanding options at 31 December 2019 £ 8.48 Weighted average exercise price of options exercised in 2019 n/a Weighted average exercise price of options forfeited in 2019 £ 13.26 Weighted average exercise price of options granted in 2019 £ 1.38 Weighted average remaining contractual life of outstanding options at 31 December 2019 7.9 years On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. Date of grant At 1 January Granted in 2018 Exercised in Forfeited in At 31 December Exercise Price 31 December 2008 1,306 – – (1,306 ) – £ 28.50 31 December 2008 150 – – (150 ) – £ 79.70 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,789 – – (200 ) 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 44,000 – – (22,500 ) 21,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – – 2,500 £ 34.20 31 October 2016 30,380 – – (6,969 ) 23,411 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 2,000 – – (375 ) 1,625 £ 37.60 15 December 2016 5,100 – – (500 ) 4,600 £ 24.20 19 December 2016 55,210 – – (19,344 ) 35,866 £ 24.20 15 December 2017 67,560 – – (21,675 ) 45,885 £ 9.20 2 April 2018 – 997 – – 997 £ 16.60 2 April 2018 – 4,500 – – 4,500 £ 24.20 226,488 5,497 – (73,019) 158,966 Options exercisable at 31 December 2018 112,393 Weighted average exercise price of outstanding options at 31 December 2018 £ 22.02 Weighted average exercise price of options exercised in 2018 n/a Weighted average exercise price of options forfeited in 2018 £ 15.98 Weighted average exercise price of options granted in 2018 £ 16.60 Weighted average remaining contractual life of outstanding options at 31 December 2018 5.7 years Date of grant At 1 January Granted in 2017 Exercised in Forfeited in At 31 December Exercise Price 31 December 2008 1,306 – – – 1,306 £ 28.50 31 December 2008 150 – – – 150 £ 79.70 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,789 – – – 1,789 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 44,000 – – – 44,000 £ 1.50 11 July 2014 150 – – 50 100 £ 1.50 31 October 2016 2,500 – – – 2,500 £ 34.20 31 October 2016 30,380 – – – 30,380 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 150 – – 150 – £ 34.20 14 December 2016 150 – – 150 – £ 34.60 14 December 2016 150 – – 150 – £ 34.80 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 2,000 – – – 2,000 £ 37.60 15 December 2016 9,850 – – 4,750 5,100 £ 24.20 19 December 2016 55,497 – – 287 55,210 £ 24.20 15 December 2017 – 67,560 – – 67,560 £ 9.20 164,465 67,560 – (5,537) 226,488 Options exercisable at 31 December 2017 50,023 Weighted average exercise price of outstanding options at 31 December 2017 £ 20.06 Weighted average exercise price of options exercised in 2017 n/a Weighted average exercise price of options forfeited in 2017 £ 24.84 Weighted average exercise price of options granted in 2017 £ 9.20 Weighted average remaining contractual life of outstanding options at 31 December 2017 8.3 years The following information is relevant in the determination of the fair value of options granted during the year 2019 under the equity share based remuneration schemes operated by the Group. April 2019 October 2019 Number of options 219,000 50,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 2.30 * £ 1.126 * Exercise price of options issued in year £ 1.46 £ 1.05 Contractual life 10 years 10 years Expected life 5 years 5 years Volatility 75.3 %** 78.3 %** Expected dividend yield 0 % 0 % Risk free rate 0.85 % 0.26 % * The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2018 under the equity share based remuneration schemes operated by the Group. 2018 Number of options 5,500 Option pricing models used Monte-Carlo Share price £ 5.40 * Exercise price of options issued in year £16.60–£24.40 Contractual life 10 years Expected life 5 years Volatility 45.2 %** Expected dividend yield 0 % Risk free rate 1.03 % * The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2017 under the equity share based remuneration schemes operated by the Group. 2017 Number of options 67,562 Option pricing models used Monte-Carlo Share price £ 8.20 * Exercise price of options issued in year £ 9.20 Contractual life 10 years Expected life 5 years Volatility 42.5 %** Expected dividend yield 0 % Risk free rate 0.73 % * The share price used in the determination of the fair value of the options granted in 2017 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. All other share options relate to the Midatech Limited 2008 unapproved share option scheme. Share Incentive Plan In April 2017 the Group set up the Midatech Pharma Share Incentive Plan (MPSIP). Under the MPSIP, Group employees and Directors can acquire ordinary shares in the Company via a salary sacrifice arrangement. Midatech grants matching shares for every share bought. In order to retain these shares, scheme participants must remain employed by the Group for three years from the date of acquisition. All shares purchased by the MPSIP are held by an Employee Benefit Trust that is not under the control of Midatech. Shares must be left in the plan for 5 years to qualify for full income tax and NIC relief. |
28 Capital commitments
28 Capital commitments | 12 Months Ended |
Dec. 31, 2019 | |
Capital commitments [abstract] | |
Capital commitments | 28 Capital commitments The Group had no capital commitments at 31 December 2019, 31 December 2018 and 31 December 2017. |
29 Related party transactions
29 Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 29 Related party transactions Transactions with BioConnection BV The Directors consider BioConnection BV (‘BioConnection’) to be a related party by virtue of the fact that there is a common Director with the Company. 2019 is the first year where this relationship existed. During the year, BioConnection invoiced the Company €17,800. As at 31 December 2019 €8,400 was due to BioConnection. Transactions with Preci-Health The Directors previously considered Preci-Health SA (‘Preci-Health) to be a related party up to 31 May 2018 by virtue of the fact that there was a common Director with the Company up to that point in time. Preci-Health ceased to be considered a related party on 31 May 2018 after the Director left the Company. During 2018 there were no transactions with Preci-Health. During 2017, £44k was invoiced to Preci-Health for research services and credited to revenue. The Group has not made any allowances for bad or doubtful debts in respect of related party debtors nor has any guarantee been given or received during 2018 or 2017 regarding related party transactions. |
30 Contingent liabilities
30 Contingent liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Contingent Liabilities | |
Contingent liabilities | 30 Contingent liabilities The Group are currently party to a claim by the estate of a former employee for unfair dismissal. The claim comprises various elements totalling up to €258,000. The case has already been dismissed by an Employment Court in Spain and has been re-filed by the state in a Civil Court in Spain. The Group consider the claim is without foundation and intend to vigorously defend the claim. It is anticipated the case will be concluded by the end of 2020. The directors note that in the event of an unfavourable judgement the Group would not be able to recoup the loss from another party. The Group had no contingent liabilities at 31 December 2018 and 31 December 2017. |
31 Ultimate controlling party
31 Ultimate controlling party | 12 Months Ended |
Dec. 31, 2019 | |
Ultimate Controlling Party | |
Ultimate controlling party | 31 Ultimate controlling party In February 2019, China Medical Systems Holdings Limited and A&B (HK) Company Ltd (collectively, “CMS”) invested a total of £8m in return for 10,389,610 new ordinary shares, which following admission on 26 February 2019, represented 51% of the issued share capital of the Company. As a result of this transaction CMS was able to exert control over Midatech during part of 2019. However subsequent to the Registered Direct Offering on 29 October 2019 CMS were no longer able to exert control as their shareholding was diluted, from this date the group does not consider there to be a controlling party. |
32 Effects of changes in accoun
32 Effects of changes in accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Effects Of Changes In Accounting Policies | |
Effects of changes in accounting policies | 32 Effects of changes in accounting policies The Group adopted IFRS 16 and IFRIC 23 with a transition date of 1 January 2019. The Group has chosen not to restate comparatives on adoption of both standards, and therefore, the revised requirements are not reflected in the prior year financial statements. Rather, these changes have been processed at the date of initial application (i.e. 1 January 2019) and recognised in the opening equity balances. Details of the impact these two standards have had are given below. Other new and amended standards and Interpretations issued by the IASB did not impact the Group as they are either not relevant to the Group’s activities or require accounting which is consistent with the Group’s current accounting policies. IFRS 16 Leases Effective 1 January 2019, IFRS 16 has replaced IAS 17 Leases and IFRIC 4 Determining whether an Arrangement Contains a Lease. IFRS 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. IFRS 16 substantially carries forward the lessor accounting in IAS 17, with the distinction between operating leases and finance leases being retained. The Group does not have significant leasing activities acting as a lessor. Transition Method and Practical Expedients Utilised The Group adopted IFRS 16 using the modified retrospective approach, with recognition of transitional adjustments on the date of initial application (1 January 2019), without restatement of comparative figures, to all contracts in existence on or after 1 January 2019, except for leases of low value based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less. As a lessee, the Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under IFRS 16, the Group recognizes right-of-use assets and lease liabilities for most leases. However, the Group has elected not to recognise right-of-use assets and lease liabilities for some leases of low value assets based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less. On adoption of IFRS 16, the Group recognised right-of-use assets and lease liabilities in relation to leases of property, which had previously been classified as operating leases. On adoption of IFRS 16, the Group recognised right-of-use assets and lease liabilities as follows: Classification Under IAS17 Right-of-use assets Lease liabilities All other operating leases Property leases: Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments. Lease liabilities were measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate as at 1 January 2019. The Group’s incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 3%. Finance leases Measured based on the carrying values for the lease assets and liabilities immediately before the date of initial application (i.e. carrying values brought forward, unadjusted). The following table presents the impact of adopting IFRS 16 on the statement of financial position as at 1 January 2019: Adjustments 31 December 2018 As originally presented £’000 IFRS 16 £’000 1 January 2019 £’000 Assets Right-of-use asset (a) – 395 395 Other receivables (b) 1,564 152 1,716 Liabilities Lease liabilities (c) (250 ) (547 ) (796 ) The adjustments to right-of-use asset is as follows: £’000 a) Right-of-use assets 395 b) Lease receivable on sub-let property 152 c) The following table reconciles the minimum lease commitments disclosed in the Group’s 31 December 2018 annual financial statements to the amount of lease liabilities recognised on 1 January 2019: 1 January 2019 £’000 Minimum operating lease commitment as 31 December 2018 577 Less: low value leases not recognised under IFRS16 (5) Less: effect of discounting using incremental borrowing rate as at the date of initial application (25) Lease liabilities recognised at 1 January 2019 547 IFRIC 23 Uncertainty over Income Tax Treatments IFRIC 23 provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation requires: · The Group to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution; · The Group to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and · If it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. The Group elected to apply IFRIC 23 retrospectively with any cumulative effect to be recorded in retained earnings as at the date of initial application, 1 January 2019. The adoption of IFRIC 23 did not result in a change in corporate tax liabilities or assets. |
33 Post balance sheet events
33 Post balance sheet events | 12 Months Ended |
Dec. 31, 2019 | |
Post Balance Sheet Event | |
Post balance sheet event | 33 Post balance sheet events In January 2020, a study of subcutaneous administration of MTD201 compared with traditional intramuscular administration in healthy volunteers showed similar pharmacokinetics and bioavailability, offering the potential for a differentiated, more patient-friendly product profile. In March 2020, an exploratory study was initiated by Columbia University in five patients with DIPG using an alternative convection enhanced delivery system. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This will change from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. The share consolidation will have an impact on the ordinary shares, any employee share option plans as well as warrants. As a result of share consolidation: Pre-Split Post-Split Weighted average number of shares outstanding - basic and diluted 366,611,759 18,330,588 Ordinary shares outstanding 469,899,613 23,494,981 Outstanding employee share options 6,720,722 336,036 Outstanding DARA options 57,150 2,857 Outstanding DARA warrants 92,480 4,624 The financial statements reflect the effects of the reverse stock split (share consolidation) for all periods presented. On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. As of the date of these Accounts, the Group’s operations have been significantly curtailed temporarily due to restrictions imposed by governments. We cannot reasonably estimate the length or severity of this pandemic and related restrictions. Some factors from the COVID-19 outbreak that we believe will adversely affect our current and planned drug development activities include: · the diversion of healthcare resources away from the conduct of clinical trial matters to focus on pandemic concerns, including the attention of physicians serving as our clinical trial investigators, hospitals serving as our clinical trial sites and hospital staff supporting the conduct of our clinical trials; · limitations on travel that interrupt key trial activities, such as clinical trial site initiations and monitoring; · interruption in global shipping affecting the transport of clinical trial materials, such as investigational drug product used in our trials; and · employee absences that delay necessary interactions with local regulators, ethics committees and other important agencies and contractors. On 31 March 2020 the Company announced that the Board had concluded, in the context of its current cash runway, that the Company was unlikely to conclude a license transaction or raise sufficient funds to continue the required remaining investment in MTD201 on a timely basis. The Board therefore decided to terminate further inhouse development of the MTD201 programme with immediate effect. The Company will continue to seek licensing partners for this asset. In line with the decision to terminate MTD201, the Board also took the difficult decision to close the Company’s MTD201 dedicated manufacturing facilities in Bilbao and offer redundancy to all 42 employees. In addition, a further five UK-based employees in clinical research and administrative roles are being offered redundancy. Following these changes, Midatech’s remaining 20 employees and operations are concentrated in Cardiff. The Company’s near term goal is to deploy its proprietary drug delivery technologies to formulate a compelling portfolio of novel first-in-class sustained release formulations of products with significant commercial potential for licensing to pharmaceutical company partners at proof of concept stage. With the exception of our ongoing commitments with respect to MTX110 clinical trials, the Company has no plans to undertake additional trials in humans unless a license partner or grant funding has been secured. The Board continues to consider options for extracting value from the Company’s technologies including providing formulation services to biopharmaceutical partners and partnering its existing and upcoming proof of concept formulations and/or partnering a technology. The provisional estimated one-time cash outflows and non-cash costs of these actions are expected to be as follows: Estimated cash £’000 Staff redundancy 933 Repayment of loans, net of deposit returned 3,569 Property lease termination costs – Settlement of lease liabilities 131 Repayment of grant funding 230 Other 70 4,933 Estimated non-cash £’000 Impairment of acquired IPRD 9,300 Impairment of goodwill 2,291 Write down of tangible assets to net realisable value 975 Right of use asset adjustment (61 ) Other (186 ) 12,319 The above table includes 100% impairment of acquired IPRD and goodwill, in a worst case scenario. The final outcome will depend on the Directors progress with the strategic options which commenced in April 2020. The cash outflows and non-cash costs will be reflected in the Company’s financial statements for 2020. On 20 April 2020, the Company announced an update to the strategic review including the appointment of an adviser and start of a ‘formal sale process’ under the Takeover Code. On 18 May 2020, the Company announced that it had raised gross proceeds of £1.8 million (before expenses) by way of a placing to investors in the UK ("UK Placing") of 6,666,666 Units (each Unit comprising one new ordinary share of 0.1p each ("Placing Share") and one warrant ("UK Warrant")) at an issue price of £0.27 per Unit. Concurrently with the UK Placing, the Company announced the pricing of a registered direct offering and concurrent private placement in the United States (the "U.S. Registered Direct Offering") for 1,818,182 American Depositary Shares ("ADSs") (each ADS representing five of the Company's Ordinary Shares) and unregistered warrant to purchase ADS's ("ADS Warrants"). The pricing of the UK Placing was aligned to the pricing of the US Registered Direct Offering after adjusting for the one-for-five ratio of ordinary shares to ADS and the GBP: USD exchange rate. The Placing Shares and the 9,090,910 Ordinary Shares representing the ADS's represent approximately 40 per cent. of the issued share capital of the Company as enlarged by the UK Placing and the US Registered Direct Offering. On 8 June 2020, the Company received a letter sent on behalf of Secura Bio, Inc. (“Secura Bio”), dated 1 June 2020, purporting to terminate a License Agreement, executed on or about 6 June 2017 (the “Secura License Agreement”), by and between Midatech Limited and Novartis AG, which Novartis AG subsequently transferred to Secura Bio. Pursuant to the Secura License Agreement, Midatech Limited was granted a non-exclusive worldwide, sublicenseable license to certain patents of panobinostat, the active pharmaceutical ingredient of the Company’s development product MTX110. Midatech Limited’s rights are limited to the treatment of brain cancer in humans, administered by convection-enhanced delivery. The Company plans to continue to pursue development of MTX110 and the strategic review process previously disclosed. The Company is also reviewing with its outside counsel remedies it may have if Secura Bio does not withdraw the notice and otherwise cease to interfere with its ongoing business and strategic review process, which the Company has formally requested. The Company is evaluating available actions to protect its right under the Secura License Agreement and its assets. |
1 Accounting policies (Policies
1 Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
General information | General information Midatech Pharma plc (the ‘Company’) is a company registered and domiciled in England and Wales. The Company was incorporated on 12 September 2014. The Company is a public limited company, which has been listed on the Alternative Investment Market (‘AIM’), which is a submarket of the London Stock Exchange, since 8 December 2014. In addition, since 4 December 2015 the Company has American Depository Receipts (‘ADRs’) registered with the US Securities and Exchange Commission (‘SEC’) and is listed on the NASDAQ Capital Market. The financial statements were approved and authorised for issue by the Board of Directors on 12 June 2020. |
Basis of preparation | Basis of preparation The Group was formed on 31 October 2014 when Midatech Pharma plc entered into an agreement to acquire the entire share capital of Midatech Limited and its wholly owned subsidiaries through the issue equivalent of shares in the Company which took place on 13 November 2014. These financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (‘adopted IFRSs’) and are presented in £’000’s Sterling, unless stated otherwise. The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the periods presented. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate its ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. At the same meeting a resolution was passed to change the ratio of the Company's American Depositary Receipts ("ADRs"). This will change from one ADR representing 20 Existing Ordinary Shares to one ADR representing five new ordinary shares. The financial statements reflect the effects of the reverse stock split/share resolutions for all periods presented. The consolidated financial statements have been prepared on a historical cost basis, except for the following item (refer to individual accounting policies for details): - Financial instruments – fair value through profit or loss. |
Adoption of new and revised standards | Adoption of new and revised standards New standards, interpretations and amendments effective from 1 January 2019 New standards impacting the Group that were adopted in the annual financial statements for the year ended 31 December 2019, and which have given rise to changes in the Group’s accounting policies are: · IFRS 16 Leases (IFRS 16); and · IFRIC 23 Uncertainty over Income Tax Treatments (IFRIC 23) Details of the impact these two standards have had are given in note 32 below. Other new and amended standards and Interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group’s activities or require accounting which is consistent with the Group’s current accounting policies. New standards, interpretations and amendments not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the group has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2020: · IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment – Definition of Material) · IFRS 3 Business Combinations (Amendment – Definition of Business) · Revised Conceptual Framework for Financial Reporting These new accounting standard amendments are not expected to have a material impact on the group. In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after 1 January 2022. The Group is currently assessing the impact of this new accounting standard amendment. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the group. |
Basis for consolidation | Basis for consolidation The Group financial statements consolidate those of the parent company and all of its subsidiaries. The parent controls a subsidiary if it has power over the investee to significantly direct the activities, exposure, or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. All subsidiaries have a reporting date of 31 December. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-Group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. The loss and other comprehensive income of Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc) acquired in December 2015 is recognised from the effective date of acquisition i.e. 4 December 2015 through to the date of sale on 1 November 2018. Similarly, the loss and other comprehensive income of Zuplenz®, acquired as a business by Midatech Pharma plc, is recognised from 24 December 2015 until 31 October 2018 (up to the formal completion of the sale of MPUS on 1 November 2018). Discontinued operations are presented in the consolidated statement of comprehensive income as a single line which comprises the post-tax profit or loss of the discontinued operation along with the post-tax gain or loss recognised on the re-measurement to fair value less costs to sell or on disposal of the assets or disposal groups constituting discontinued operations. The consolidated financial statements consist of the results of the following entities: Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) Trading company PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Trading company Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 Trading company Dara Therapeutics, Inc. (until 1 November 2018) Dormant |
Going concern | Going concern The Group and parent company are subject to a number of risks similar to those of other development and early-commercial stage pharmaceutical companies. These risks include, amongst others, generation of revenue from the development portfolio and risks associated with research, development, testing and obtaining related regulatory approvals of its pipeline products. Ultimately, the attainment of profitable operations is dependent on future uncertain events which include obtaining adequate financing to fulfil the Group’s commercial and development activities and generating a level of revenue adequate to support the Group’s cost structure. On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. As of the date of these Financial Statements, the Group’s operations have been significantly curtailed temporarily due to restrictions imposed by governments. The Group cannot reasonably estimate the length or severity of this pandemic and related restrictions. Some factors from the COVID-19 outbreak that the company believe will adversely affect current and planned drug development activities include: · the diversion of healthcare resources away from the conduct of clinical trial matters to focus on pandemic concerns, including the attention of physicians serving as our clinical trial investigators, hospitals serving as our clinical trial sites and hospital staff supporting the conduct of our clinical trials; · limitations on travel that interrupt key trial activities, such as clinical trial site initiations and monitoring; · interruption in global shipping affecting the transport of clinical trial materials, such as investigational drug product used in our trials; and · employee absences that delay necessary interactions with local regulators, ethics committees and other important agencies and contractors. We have experienced net losses and significant cash outflows from cash used in operating activities over the past years as we develop our portfolio. For the year ended December 31, 2019, the Company incurred a consolidated loss from operations of £10.1 million and negative cash flows from operations of £6.5 million. As of December 31, 2019, the Group had an accumulated deficit of £99.8 million. The Company's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As at December 31, 2019, we had cash and cash equivalents of £10.93 million. In May 2020, we completed an equity offering, raising £3.7m net of costs. We believe we currently have enough cash to fund our planned operations into the second quarter of 2021. Our future viability is dependent on our ability to generate cash from operating activities, to raise additional capital to finance our operations and to successfully obtain regulatory approval to allow marketing of our development products. Our failure to raise capital as and when needed could have a negative impact on our financial condition and ability to pursue its business strategies. For example, due to our current and forecasted cash position, on 31 March 2020, we made the decision to abandon certain of our research and development programs, close our Spanish operations and make certain terminations within our UK operations. In connection with our strategic review announced on the same date, we are in the process of seeking to license or assign one or more of our technologies to a partner or, alternatively, to seek a buyer for our Company. Any or all of these transactions may be on unfavorable terms. We have prepared cash flow forecasts and considered the cash flow requirement for the Company for the next five years including the period twelve months from the date of approval of the consolidated financial statements. These forecasts show that further financing will be required before the second quarter of 2021 assuming, inter alia, that all development programs and other operating activities continue as currently planned. This requirement for additional financing in the short term represents a material uncertainty that raises substantial doubt about our ability to continue as a going concern. In addition, the global spread of the pandemic COVID-19 virus places increased uncertainty over our forecasts. The restrictions placed and being placed on the movement of people will likely cause delays to some of our plans. The scale of the impact of COVID-19 is evolving and it is difficult to assess to what extent, and for how long, it will cause delays to our operations. We have established a COVID-19 task force internally to monitor the impact of COVID-19 on our business and prioritize activities to minimize its effect. In addition to utilizing the existing cash reserves, as part of our ongoing strategic review, we and our advisors are evaluating a number of near-term funding options potentially available to us, including fundraising, the partnering of assets and technologies or the sale of the Company. After considering the uncertainties, we consider it is appropriate to continue to adopt the going concern basis in preparing the financial information. Our ability to continue as a going concern is dependent upon our ability to obtain additional capital and/or dispose of assets, for which there can be no assurance we will be able to do on a timely basis, on favorable terms or at all. |
Revenue | Revenue Revenue is accounted for in line with principles of IFRS 15 ‘Revenue from contracts with customers’ Revenue from licensing agreements The Group entered into a Licence Agreement during 2019. The licence consists of two distinct performance conditions, which is the grant of the license to use of its intellectual property (“IP”) and the supply of Product. After the Company has granted the license, and the Product is granted applicable marketing authorizations in the EU, the US, or the UK, France, Germany or Switzerland and China, there are no further obligations to participate in, or provide additional services to its customer. The transaction price for the grant of the license to use the Company’s IP comprises of fixed and variable payment streams and the grant of the license is considered to be a right to use IP. Upfront fees earned, are recognised as revenue at a point in time, upon transfer of control over the license to the licensee and the grant of the applicable marketing authorisation by the relevant statutory authority. Revenue from variable consideration, which is contingent on achievements of future milestones is recognised as revenue when it is highly probable the revenue will not reverse, that is when the underlying contingencies have been resolved. For future royalty payments associated with a license, the Company applies the IFRS 15 exception for sales-based royalties and recognises the revenue only when the subsequent sale occurs. Supply of Goods Revenue from sales of goods to customer are recognised when all performance obligations are met. These criteria are considered to be met when the goods are delivered to the customer. Revenue represents the full list price of products shipped to wholesalers and other customers less product returns, discounts, rebates and other incentives based on the sales price. Supply of Services Revenue from the supply of services is subject to specific agreement. This is recognised over the contract term, proportionate to the progress in overall satisfaction of the performance obligations (the services performed by the Group), measured by cost incurred to date out of total estimate of costs. Milestones The Group’s revenue also include milestone income from research and development contracts. Milestone income is recognised as revenue in the accounting period in which the milestones are achieved. Milestones are agreed on a project by project basis and will be evidenced by set deliverables. |
Grant revenue | Grant revenue Where grant income is received, which is not a direct re-imbursement of related costs and at the point at which the conditions have been met for recognition as income, this has been shown within grant revenue. |
Government grants and government loans | Government grants and government loans Where government grants are received as a re-imbursement of directly related costs they are credited to research and development expense in the same period as the expenditure towards which they are intended to contribute. The Group receives government loans that have a below-market rate of interest. These loans are recognised and measured in accordance with IFRS 9. The benefit of the below-market rate of interest is measured as the difference between the initial carrying value of the loan discounted at a market rate of interest and the proceeds received. The difference is held within deferred revenue as a government grant and is released as a credit to grant income or to research and development expense in line with the expenditure to which it relates. In a situation where the proceeds were invested in plant and equipment, the deferred revenue is credited to research and development within the income statement in line with the depreciation of the acquired asset. |
Business combinations and externally acquired intangible assets | Business combinations and externally acquired intangible assets Business combinations are accounted for using the acquisition method at the acquisition date, which is the date at which the Group obtains control over the entity. The cost of an acquisition is measured as the amount of the consideration transferred to the seller, measured at the acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The Group measures goodwill initially at cost at the acquisition date, being: · the fair value of the consideration transferred to the seller, plus; · the amount of any non-controlling interest in the acquiree, plus; · if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree re-measured at the acquisition date, less; · the fair value of the net identifiable assets acquired and assumed liabilities. Acquisition costs incurred are expensed and included in administrative costs. Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration, whether it is an asset or liability, will be recognised either as a profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it is not re-measured. An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable or when it arises from contractual or other legal rights. Externally acquired intangible assets other than goodwill are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives where they are in use. The amortisation expense is included within the distribution costs, sales and marketing in the consolidated statement of comprehensive income. Goodwill is stated at cost less any accumulated impairment losses. The amounts ascribed to intangibles recognised on business combinations are arrived at by using appropriate valuation techniques (see section related to critical estimates and judgements below). In-process research and development (‘IPRD’) programmes acquired in business combinations are recognised as assets even if subsequent expenditure is written off because the criteria specified in the policy for development costs below are not met. IPRD is subject to annual impairment testing until the completion or abandonment of the related project. No further costs are capitalised in respect of this IPRD unless they meet the criteria for research and development capitalisation as set out below. As per IFRS 3, once the research and development of each defined project is completed, the carrying value of the acquired IPRD is reclassified as a finite-lived asset and amortised over its useful life. The product and marketing rights recognised in 2017 related to various licenses, the Group held via its US subsidiary. These rights were disposed of with the sale of the subsidiary. The significant intangibles recognised by the Group and their useful economic lives are as follows: Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years Product and marketing rights – Between 2 and 12 years The useful economic life of IPRD will be determined when the in-process research projects are completed. Amortisation of product and marketing rights ceased in June 2018 when the US entity was classified as held for sale. |
Internally generated intangible assets (development costs) | Internally generated intangible assets (development costs) Expenditure on the research phase of an internal project is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied: · completion of the asset is technically feasible so that it will be available for use or sale; · the Group intends to complete the asset and use or sell it; · the Group has the ability to use or sell the asset and the asset will generate probable future economic benefits (over and above cost); · there are adequate technical, financial and other resources to complete the development and to use or sell the asset; and · the expenditure attributable to the asset during its development can be measured reliably. Judgement is applied when deciding whether the recognition criteria are met. Judgements are based on the information available. In addition, all internal activities related to the research and development of new projects are continuously monitored by the Directors. The Directors consider that the criteria to capitalise development expenditure are not met for a product prior to that product receiving regulatory approval in at least one country. Development expenditure not satisfying the above criteria, and expenditure on the research phase of internal projects are included in research and development costs recognised in the Consolidated Statement of Comprehensive Income as incurred. No projects have yet reached the point of capitalisation. |
Impairment of non-financial assets | Impairment of non-financial assets Assets that have an indefinite useful life, for example goodwill, or intangible assets not ready for use, such as IPRD, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. An impairment charge of £1.5m was recognised in 2017 against the IPRD of the Midatech Pharma (Wales) Ltd cash generating unit within continuing operations. Please refer to Note 33 Post Balance Sheet Events, for potential impairment charges during 2020. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). After the disposal of the US operation on 1 November 2018, the Group at 31 December 2019 had only one cash generating unit (2018: one, 2017: two), as set out in note 13. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of impairment at each reporting date. Impairment charges are included in profit or loss, except, where applicable, to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed. |
Patents and trademarks | Patents and trademarks The costs incurred in establishing patents and trademarks are either expensed in accordance with the corresponding treatment of the development expenditure for the product to which they relate or capitalised if the development expenditure to which they relate has reached the point of capitalisation as an intangible asset. |
Joint arrangements | Joint arrangements The Group is a party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries. The Group classifies its interests in joint arrangements as either: · Joint ventures: where the Group has rights to only the net assets of the joint arrangement; or · Joint operations: where the Group has both the rights to assets and obligations for the liabilities of the joint arrangement. In assessing the classification of interests in joint arrangements, the Group considers: · the structure of the joint arrangement; · the legal form of joint arrangements structured through a separate vehicle; · the contractual terms of the joint arrangement agreement; and · any other facts and circumstances (including any other contractual arrangements). The results and assets and liabilities of joint ventures are incorporated in the financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in a joint venture is recognised initially in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the joint venture. When the Group’s share of losses of a joint venture exceeds the Group’s interest in that joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture. |
Foreign currency | Foreign currency Transactions entered into by subsidiary entities in a currency other than the currency of the primary economic environment, in which they operate, are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. The presentational currency of the Group is Pounds Sterling, and the reporting currency is also Pounds Sterling. Foreign subsidiaries use the local currencies of the country where they operate. On consolidation, the results of overseas operations are translated into Pounds Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve. Exchange differences recognised in the profit or loss of Group entities on the translation of long-term monetary items forming part of the Group’s net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation. On disposal of a foreign operation, the cumulative exchange differences recognised in the foreign exchange reserve relating to that operation up to the date of disposal are transferred to the consolidated statement of comprehensive income as part of the gain or loss on disposal. |
Financial assets and liabilities | Financial assets and liabilities Assets at amortised cost The Group does not have any financial assets which it would classify as fair value through profit or loss. Therefore, all financial assets are classed as assets at amortised cost as defined below. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. For impairment provisions, the Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected credit loss provision for trade receivables to measure expected credit losses on a collective basis. Trade receivables are grouped based on a similar credit risk and ageing. Based on the scale of this area, our historic treatment is not materially different to the simplified approach under IFRS 9. The expected loss rates are based on the Group’s historic credit losses experienced over the three-year period prior to the period end. The historic loss rates are then adjusted for current and forward-looking information on macroeconomic factors. The Group’s assets at amortised costs comprise trade and other receivables and cash and cash equivalents in the consolidated statement of financial position. Cash and cash equivalents include cash in hand, deposits held at call with original maturities of three months or less. Financial liabilities The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. Fair value through profit and loss (‘FVTPL’) The Group has outstanding warrants in the ordinary share capital of the company. The number of ordinary shares to be issued when exercised is fixed, however the exercise price is denominated in US Dollars being different to the functional currency of the parent company. Therefore, the warrants are classified as equity settled derivative financial liabilities recognised at fair value through the profit and loss account. The financial liability is valued using the either the Monte Carlo model or the Black-Scholes option pricing model. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on re-measurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘finance income’ or ‘finance expense’ lines item in the income statement. Fair value is determined in the manner described in note 22. Other financial liabilities include the following items: · Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. · Government loans received on favourable terms below market rate are discounted at a market rate of interest. The difference between the present value of the loan and the proceeds is held as a government grant within deferred revenue and is released to research and development expenditure or grant income in line with when the asset or expenditure is recognised in the income statement. · Trade payables and other short-term monetary liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. |
Share capital | Share capital Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group has two classes of share in existence: · ordinary shares of £0.00005 each are classified as equity instruments; · deferred shares of £1 each are classified as equity instruments. On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it’s ordinary shares on a one for 20 basis into new ordinary shares of £0.001 each in the capital of the Company. The change in the number of shares resulting from the reverse stock split and change in the number of Depositary Shares resulting from the change in ratio has been applied retroactively to all share and per share amounts presented in this annual report, to the extent applicable. |
Retirement benefits: defined contribution schemes | Retirement benefits: defined contribution schemes Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate. |
Provisions | Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
Share-based payments | Share-based payments The Group operates a number of equity-settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted: · including any market performance conditions (including the share price); · excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and · including the impact of any non-vesting conditions (for example, the requirement for employees to save). Non-market performance and service conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. Where vesting conditions are accelerated on the occurrence of a specified event, such as a change in control or initial public offering, such remaining unvested charge is accelerated In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grant date fair value is estimated for the purposes of recognising the expense during the period between service commencement period and grant date. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity. When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. |
Leases | Leases The majority of the Group’s accounting policies for leases are set out in note 11. Identifying Leases The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria: (a) There is an identified asset; (b) The Group obtains substantially all the economic benefits from use of the asset; and (c) The Group has the right to direct use of the asset. The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the economic benefits that arise use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Group considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other applicable IFRSs rather than IFRS 16. |
Deferred taxation | Deferred taxation Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the consolidated statement of financial position differs from its tax base, except for differences arising on: · the initial recognition of goodwill; · the initial recognition of an asset or liability in a transaction which is not a business combination and at the time · investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future. Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax assets or liabilities are recovered or settled. |
Property, plant and equipment | Property, plant and equipment Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs. Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: Fixtures and fittings – 25% per annum straight line Leasehold improvements – the shorter of 10% per annum straight line or over the lease term Computer equipment – 25% per annum straight line Laboratory equipment – 15% – 25% per annum straight line Right of use asset – Economic life of contractual relationship |
Inventories | Inventories Inventories are stated at the lower of cost or net realisable value. Net realisable value is the market value. In evaluating whether inventories are stated at the lower of cost or net realisable value, management considers such factors as the amount of inventory on hand and in the distribution channel, estimated time required to sell such inventory, remaining shelf life, and current and expected market conditions, including levels of competition. If net realisable value is lower than the carrying amount a write down provision is recognised for the amount by which the carrying value exceeds its net realisable value. Inventory is valued at the lower of cost or market value using the FIFO method. Inventory is charged to the income statement as cost of sales as it is sold. |
1 Accounting policies (Tables)
1 Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies | |
Schedule of entities | The consolidated financial statements consist of the results of the following entities: Entity Summary description Midatech Pharma plc Ultimate holding company Midatech Limited Trading company Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) Trading company PharMida AG Dormant Midatech Pharma (Wales) Limited (formerly Q Chip Limited) Trading company Midatech Pharma Pty Trading company Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 Trading company Dara Therapeutics, Inc. (until 1 November 2018) Dormant |
Schedule of intangibles assets useful economic lives | The significant intangibles recognised by the Group and their useful economic lives are as follows: Goodwill – Indefinite life IPRD – In process, not yet amortising IT and website costs – 4 years Product and marketing rights – Between 2 and 12 years |
Schedule of depreciation rates of property, plant and equipment | Depreciation is provided on all items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: Fixtures and fittings – 25% per annum straight line Leasehold improvements – the shorter of 10% per annum straight line or over the lease term Computer equipment – 25% per annum straight line Laboratory equipment – 15% – 25% per annum straight line Right of use asset – Economic life of contractual relationship |
3 Segment Information (Tables)
3 Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Schedule of revenue by geographical analysis | Geographical analysis of revenue by destination of customer 2019 £’000 2018 £’000 2017 £’000 Revenue from continuing operations: United Kingdom 197 149 79 Rest of Europe 55 – 70 Rest of the World 60 – – 312 149 149 Revenue from discontinued operations United States – 3,882 6,609 |
Schedule of commercial segment | Within revenue from discontinued operations for 2018, reported in the consolidated statement of comprehensive income under loss from discontinued operations, four customers each accounted for at least 10% of revenue from discontinued operations (2017: three customers): 2019 £’000 2018 £’000 2017 £’000 Customer A 63 % 100 % 55 % Customer B 19 % - - Customer C 18 % - - |
Schedule of segment | Segmented results for the year ended 31 December 2019 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 312 – 312 Grant revenue 362 – 362 Total revenue 674 – 674 Other income 15 – 15 Cost of sales – – - Research and development costs (6,624 ) – (6,624 ) Distribution costs, sales and marketing (323 ) – (323 ) Administrative costs (3,775 ) – (3,775 ) Loss from discontinued operations, net of tax – (947 ) (947 ) Depreciation (1,282 ) – (1,282 ) Amortisation (3 ) – (3 ) Loss from operations (11,318 ) (947 ) (12,265 ) Finance income 492 – 492 Finance expense (97 ) – (97 ) Loss before tax (10,923 ) (947 ) (11,870 ) Taxation 1,785 – 1,785 Loss for the year (9,138 ) (947 ) (10,085 ) Loss from continuing operations (9,138 ) Loss from discontinued operations (947 ) Segmented results for the year ended 31 December 2018 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 149 3,882 4,031 Grant revenue 1,789 – 1,789 Total revenue 1,938 3,882 5,820 Cost of sales – (1,286 ) (1,286 ) Research and development costs (8,555 ) (283 ) (8,838 ) Distribution costs, sales and marketing – (4,357 ) (4,357 ) Administrative costs (4,087 ) (872 ) (4,959 ) Loss on disposal of discontinued operations – (1,407 ) (1,407 ) Depreciation (1,011 ) (5 ) (1,016 ) Amortisation (100 ) (334 ) (434 ) Loss from operations (11,815 ) (4,662 ) (16,477 ) Finance income 2 – 2 Finance expense (587 ) – (587 ) Loss before tax (12,400 ) (4,662 ) (17,062 ) Taxation 2,032 – 2,032 Loss for the year (10,368 ) (4,662 ) (15,030 ) Loss from continuing operations (10,368 ) Loss from discontinued operations (4,662 ) Segmented results for the year ended 31 December 2017 Pipeline R&D £’000 Commercial £’000 Consolidated £’000 Revenue 149 6,609 6,758 Grant revenue 840 – 840 Total revenue 989 6,609 7,598 Cost of sales – (926 ) (926 ) Research and development costs (7,355 ) (356 ) (7,711 ) Distribution costs, sales and marketing (170 ) (7,477 ) (7,647 ) Administrative costs (4,266 ) (566 ) (4,832 ) Depreciation (974 ) (9 ) (983 ) Amortisation – (1,577 ) (1,577 ) Impairment of intangible assets (1,500 ) – (1,500 ) Loss from operations (13,276 ) (4,302 ) (17,578 ) Finance income 415 – 415 Finance expense (109 ) (57 ) (166 ) Loss before tax (12,970 ) (4,359 ) (17,329 ) Taxation 1,265 – 1,265 Loss for the year (11,705 ) (4,359 ) (16,064 ) Loss from continuing operations (11,705 ) Loss from discontinued operations (4,359 ) |
Schedule of non-current assets by location of assets | Non-current assets by location of assets 2019 £’000 2018 £’000 2017 £’000 Spain 4,383 1,860 2,154 United Kingdom 12,775 12,966 15,331 United States – – 13,156 17,158 14,826 30,641 |
4 Discontinued operations (Tabl
4 Discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Schedule of cash flows from discontinued operations | During 2019 a claim was made by MPUS under the warranties provided by Midatech under the disposal agreement, see note 2. The statement of cash flows includes the following amounts relating to discontinued operations: 2019 £’000 2018 £’000 Cash consideration received – 9,350 Other consideration received – – Total consideration received – 9,350 Cash disposed of – (91 ) Net cash inflow on disposal of discontinued operation – 9,259 Net assets disposed (other than cash): – 3 Property, plant and equipment – 15,662 Intangibles – 948 Inventory – 629 Trade and other payables – (2,734 ) Total net assets disposed of (other than cash) – (14,508 ) Loss on disposal of discontinued operation before and after tax – (5,249 ) Foreign exchange gain realised on disposal – 3,842 Loss on disposal – (1,407 ) |
Schedule of post-tax loss on disposal of discontinued operations | The post-tax loss on disposal of discontinued operations was determined as follows: Result of discontinued operations 2019 £’000 2018 £’000 2017 £’000 Revenue – 3,882 6,609 Expenses other than finance costs (947 ) (7,137 ) (10,911 ) Finance costs – – (57 ) Impairment – – – Loss from discontinued operations before tax (947 ) (3,255 ) (4,359 ) Taxation – – – Loss on disposal of discontinued operations – (1,407 ) – Loss for the year from discontinued operations after tax (947 ) (4,662 ) (4,359 ) |
Schedule of amounts related to discontinued operations | Statement of cash flows 2019 £’000 2018 £’000 2017 £’000 The statement of cash flows includes the following amounts relating to Operating activities – (5,368 ) (1,654 ) Investing activities (947 ) – – Financing activities – (7 ) (34 ) Net cash flow from discontinued operations (947 ) (5,375 ) (1,688 ) |
5 Loss from operations (Tables)
5 Loss from operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loss From Operations | |
Schedule of loss from operations | 2019 £’000 2018 £’000 2017 £’000 Loss from operations is stated after charging/(crediting): Changes in inventories of finished goods and work in progress – (976 ) 202 Depreciation of property, plant and equipment – From continuing operations 979 1,011 974 – From discontinued operations – 5 9 Depreciation of right of use asset – From continuing operations 303 – – – From discontinued operations – – – Amortisation of intangible assets – product and marketing rights – From continuing operations 3 100 193 – From discontinued operations – 334 1,384 Impairment of intangible assets – – 1,500 Fees payable to the Company’s auditor for the audit of the parent 110 111 110 Fees payable to the Company’s subsidiary auditors for the audits of the 48 143 140 Fees payable to the Company’s auditor for: – Other services 66 83 100 Operating lease expense: – Property – 386 277 – Plant and machinery – – – Arrangement/penalty fees for loan facility – 469 57 Foreign exchange(gain)/loss 131 212 (39 ) Loss on disposal of property, plant and equipment – 165 27 Equity settled share-based payment (34 ) (36 ) 520 |
6 Staff costs (Tables)
6 Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Staff Costs | |
Schedule of staff costs | Staff costs (including Directors), for continuing and discontinued operations, comprise: 2019 £’000 2018 £’000 2017 £’000 Staff costs (including Directors) comprise: Wages and salaries 2,762 5,393 5,278 Defined contribution pension cost (note 26) 90 149 158 Social security contributions and similar taxes 565 639 643 Share-based payment (34 ) (36 ) 520 3,383 6,145 6,599 Continuing operations 3,383 4,352 4,578 Discontinued operations – 1,793 2,021 3,383 6,145 6,599 |
Schedule for average number of employed staff | The average number of staff employed by the Group during the financial year, for continuing and discontinued operations, amounted to: 2019 2018 2017 Research and development 52 63 62 General and administration 13 16 17 Sales and marketing – 6 6 65 85 85 |
Schedule of key management personnel compensation | Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the Directors of the Company, and the Chief Operating Officer. 2019 £’000 2018 £’000 2017 £’000 Wages and salaries 656 900 811 Defined contribution pension cost 42 39 68 Payments made to third parties 82 142 142 Social security contributions and similar taxes 72 77 97 Benefits in kind 2 3 3 Share-based payment (58 ) (92 ) 388 796 1,069 1,509 |
Schedule of Director's emoluments | Emoluments disclosed above include the following amounts in respect of the highest paid Director. 2019 £’000 2018 £’000 2017 £’000 Salary 266 110 299 Total pension and other post-employment benefit costs 22 4 10 Benefits in kind 1 1 1 Termination benefits - 99 – 289 214 310 |
7 Finance income and expense (T
7 Finance income and expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Finance Income And Expense | |
Schedule of finance income | 2019 £’000 2018 £’000 2017 £’000 Finance income Interest received on bank deposits 8 2 15 Gain on equity settled derivative financial liability 484 – 400 Total finance income 492 2 415 The gain on the equity settled derivative financial liability in 2019 arose as a result of the reduction in share price. The gain in 2017 arose due to the reduction in the share price and the lapsing of associated warrants and options as set out in note 21. 2019 £’000 2018 £’000 2017 £’000 Finance expense Bank loans 6 587 18 Other loans 91 – 91 Total finance expense 97 587 109 |
8 Taxation (Tables)
8 Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxation Abstract | |
Schedule of components of income tax expense (benefit) | 2019 £’000 2018 £’000 2017 £’000 Current tax credit Current tax credited to the income statement 1,782 1,952 1,253 Taxation payable in respect of foreign subsidiary – (67 ) – Adjustment in respect of prior year 3 128 – 1,785 2,013 1,253 Deferred tax credit Reversal of temporary differences – 19 12 Total tax credit 1,785 2,032 1,265 |
Schedule of difference between actual tax charge and the standard rate of corporation tax | The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows: 2019 £’000 2018 £’000 2017 £’000 Loss for the year, continuing and discontinued operations (10,085 ) (15,030 ) (16,064 ) Income tax credit – continuing operations (1,785 ) (2,032 ) (1,265 ) Loss before tax (11,870 ) (17,062 ) (17,329 ) Expected tax credit based on the standard rate of United Kingdom (2,255 ) (3,241 ) (3,336 ) Expenses not deductible for tax purposes 1,087 2,492 412 Unrelieved tax losses and other deductions (114 ) – – Adjustment in respect of prior period (3 ) (129 ) – Surrender of tax losses for R&D tax refund (1,810 ) (1,955 ) (1,196 ) Unrelieved tax losses and other deductions arising in the period – (220 ) (156 ) Foreign exchange differences 1 (26 ) (84 ) Deferred tax not recognised 1,309 1,047 3,095 Total tax credited to the income statement (1,785 ) (2,032 ) (1,265 ) |
9 Loss per share (Tables)
9 Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loss Per Share | |
Schedule of loss per share | 2019 £’000 2018 £’000 2017 £’000 Numerator Loss used in basic EPS and diluted EPS: Continuing operations (9,138 ) (10,368 ) (11,705 ) Discontinued operations (947 ) (4,662 ) (4,359 ) Denominator Weighted average number of ordinary shares used in basic EPS: 18,330,588 3,056,303 2,565,866 Basic and diluted loss per share: Continuing operations – pence (50 )p (339 )p (456 )p Discontinued operations – pence (5 )p (153 )p (170 )p |
10 Property, plant and equipm_2
10 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of detailed information about property, plant and equipment | Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Cost At 1 January 2017 228 1,999 281 3,050 – 5,558 Additions 18 41 57 591 – 707 Disposal – – – (41 ) – (41 ) Exchange differences 6 72 4 69 – 151 At 31 December 2017 252 2,112 342 3,669 – 6,375 Additions 4 106 40 353 – 503 Disposal (5 ) (229 ) – (401 ) – (635 ) Exchange differences 2 24 1 30 – 57 At 31 December 2018 253 2,013 383 3,651 – 6,300 Adoption of IFRS 16 Leases – – – – 395 395 Additions 4 137 23 223 822 1,209 Effect of modification to lease – – – – (82 ) (82 ) Exchange differences (9 ) (112 ) (3 ) (136 ) (11 ) (271 ) At 31 December 2019 248 2,038 403 3,738 1,124 7,551 Fixtures and fittings £’000 Leasehold improvements £’000 Computer equipment £’000 Laboratory equipment £’000 Right of use asset £’000 Total £’000 Accumulated depreciation At 1 January 2017 149 872 122 1,649 – 2,792 Charge for the year 43 330 68 542 – 983 Disposals – – – (14 ) – (14 ) Exchange differences 4 36 2 43 – 85 At 31 December 2017 196 1,238 192 2,220 – 3,846 Charge for the year 43 403 72 499 – 1,016 Disposals – (175 ) (3 ) (421 ) – (599 ) Exchange differences 2 19 4 28 – 53 At 31 December 2018 241 1,485 265 2,326 – 4,317 Charge for the year 2 400 70 507 303 1,282 Exchange differences (8 ) (91 ) (3 ) (93 ) (7 ) (202 ) At 31 December 2019 235 1,794 332 2,740 296 5,397 Net book value At 31 December 2019 13 244 71 998 828 2,154 At 31 December 2018 12 528 118 1,325 – 1,983 At 31 December 2017 56 874 150 1,449 – 2,529 |
11 Leases (Tables)
11 Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Schedule of market rental rates | The group leases a number of properties in the jurisdictions from which it operates. In some jurisdictions it is customary for lease contracts to provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. Right of Use Asset Land and £’000 At 1 January 2019 395 Additions 822 Effect of modification to lease terms (82 ) Depreciation (303 ) Exchange differences (4 ) At 31 December 2019 828 Lease Liabilities Land and Buildings £’000 At 1 January 2019 546 Additions 822 Effect of modification to lease terms (82 ) Interest expenses 24 Lease payments (391 ) Exchange differences (12 ) At 31 December 2019 907 |
Schedule of leases | The group had commitments under non-cancellable operating leases as set out below, from 1 January 2019, the group has recognised right-of-use assets for these leases, exception for low value leases, see note 32 for further information. Land and Buildings £’000 Other £’000 2019 Expiring In one year or less - - Expiring between one and five years - - - - 2018 Expiring In one year or less 383 1 Expiring between one and five years 189 4 572 5 2017 Expiring In one year or less 449 8 Expiring between one and five years 359 32 808 40 |
12 Intangible assets (Tables)
12 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets and goodwill [abstract] | |
Schedule of reconciliation of changes in intangible assets and goodwill | In-process £’000 Product and £’000 Goodwill £’000 IT/Website £’000 Total £’000 Cost At 1 January 2017 12,600 21,481 14,488 26 48,595 Additions 778 – – – 778 Foreign exchange – (1,625 ) (1,044 ) 1 (2,668 ) At 31 December 2017 13,378 19,856 13,444 27 46,705 Disposals – (21,022 ) (11,808 ) – (32,830 ) Foreign exchange – 1,166 655 1 1,822 At 31 December 2018 13,378 – 2,291 28 15,697 Additions – – – 9 9 Foreign exchange – – – (2 ) (2 ) At 31 December 2019 13,378 – 2,291 35 15,704 In-process research and development £’000 Product and marketing rights £’000 Goodwill £’000 IT/Website Costs £’000 Total £’000 Accumulated amortisation At 1 January 2017 1,800 15,608 – 15 17,423 Amortisation charge for the year – 1,574 – 3 1,577 Impairment 1,500 – – – 1,500 Foreign exchange – (1,443 ) – 1 (1,442 ) At 31 December 2017 3,300 15,739 – 19 19,058 Amortisation charge for the year – 431 – 3 434 Disposals – (17,103 ) – – (17,103 ) Foreign exchange – 933 – 1 934 At 31 December 2018 3,300 – – 23 3,323 Amortisation charge for the year – – – 3 3 Foreign exchange – – – (1 ) (1 ) At 31 December 2019 3,300 – – 25 3,325 Net book value At 31 December 2019 10,078 – 2,291 10 12,379 At 31 December 2018 10,078 – 2,291 5 12,374 At 31 December 2017 10,078 4,117 13,444 8 27,647 |
Schedule of individual intangible assets | The individual intangible assets, excluding goodwill, which are material to the financial statements are: Carrying amount Remaining amortisation 2019 £’000 2018 £’000 2017 £’000 2019 (years) 2018 (years) 2017 (years) Midatech Pharma (Wales) Limited acquired IPRD 9,300 9,300 9,300 n/a in n/a in n/a in Midatech Pharma US, Inc., product and marketing – – 1,995 n/a n/a Between 1 and 3 Zuplenz® product and marketing rights – – 2,122 n/a n/a 11 MTX110 acquired IPRD 778 778 778 n/a in process n/a in process n/a in process 10,078 10,078 14,195 |
13 Impairment testing (Tables)
13 Impairment testing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairment Testing | |
Schedule of cash generating unit | Details of goodwill and IPRD allocated to the acquired cash generating unit and the valuation basis are as follows: Indefinite lived IPRD carrying amount Goodwill carrying amount Name 2019 £’000 2018 £’000 2017 £’000 2019 £’000 2018 £’000 2017 £’000 Valuation Basis CGU – Midatech Pharma (Wales) Ltd 9,300 9,300 9,300 2,291 2,291 2,291 Value in use |
Schedule of key assumptions used | The key assumptions used in the valuation model examining the MPW Ltd cash generating unit include the following: Assumptions 2019 2018 2017 Pre-tax discount rate 18.4 % 17.7 % 17.9 % Cumulative probability of success of projects 81 % 81 % 81 % |
Schedule of key assumptions used for carrying value and recoverable amount | If any one of the following changes were made to the above key assumptions, the carrying value and recoverable amount would be equal. Assumptions 2019 2018 2017 Pre-tax discount rate for all projects increase to 21% increase to 29.8% increase to 21.0% Cumulative probability of success of project 59 % 34 % 57 % |
14 Subsidiaries (Tables)
14 Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subsidiaries | |
Schedule of subsidiaries | The subsidiaries of Midatech Pharma plc, all of which are 100% owned, either directly or through subsidiaries where indicated, and have been included in these financial statements in accordance with the details set out in the basis of preparation and basis of consolidation note 1, are as follows: Name Registered Office Nature of Business Notes Midatech Limited Oddfellows House, 19 Newport Road, Cardiff, Trading company Midatech Pharma (España) SL Parque Tecnológico de Vizcaya, Edificio 800 Planta 2, Derio, 48160, Vizcaya, Spain Trading company (a) PharMida AG c/o Kellerhals, Hirschgässlein 11, 4051 Basel, Switzerland Dormant (a) (b) Midatech Pharma (Wales) Oddfellows House, 19 Newport Road, Cardiff, Trading company Midatech Pharma PTY c/o Griffith Hack Consulting, 300 Queen Street, Brisbane, QLD 4000, Australia Trading company (c) Notes: (a) Wholly owned subsidiary of Midatech Limited. (b) PharMida AG became dormant in January 2016. (c) Midatech Pharma PTY was incorporated on 16 February 2015. |
15 Trade and other receivables
15 Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Schedule of trade and other receivables | 2019 £’000 2018 £’000 2017 £’000 Trade receivables 22 89 2,232 Prepayments 151 139 627 Other receivables 3,444 1,564 848 Total trade and other receivables 3,617 1,792 3,707 Less: non-current portion (rental deposit and on bond) (2,625 ) (469 ) (465 ) Current portion 992 1,323 3,242 |
16 Cash and cash equivalents _2
16 Cash and cash equivalents and cash flow supporting notes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents And Cash Flow Supporting Notes | |
Schedule of cash and cash equivalents | Cash and cash equivalents for purposes of the consolidated statement of cash flows comprises: 2019 £’000 2018 £’000 2017 £’000 Cash at bank available on demand 10,928 2,343 13,20 |
Schedule of cash inflows from an equity financing transaction | During 2019 and 2017, cash inflows arose from equity financing transactions, included within financing activities on the face of the cash flow statement. As part of the equity transaction in October 2019 warrants to the value of £1.1m were issued as disclosed in note 21. 2019 £’000 2018 £’000 2017 £’000 Gross proceeds 15,767 – 6,157 Transaction costs (1,659 ) – (429 ) 14,108 – 5,728 |
Schedule of changes in bank loan liabilities | The following changes in loans and borrowings arose as a result of financing activities during the year: Non-current £’000 Current £’000 Total £’000 At 1 January 2019 884 368 1,252 Cash flows 5,575 (1,027 ) 4,548 Non-cashflows: Foreign Exchange (42 ) (29 ) (71 ) Fair value changes (1,139 ) – (1,139 ) Adoption of IFRS16 leases 163 383 546 Effect of modification to lease term – IFRS 16 – (82 ) (82 ) New leases 805 95 900 Loans and borrowings classified as non-current 31 December 2018 (685 ) 685 – Transfer to grant income – (14 ) (14 ) Interest accruing in period 108 34 142 At 31 December 2019 5,670 412 6,082 Non-current £’000 Current £’000 Total £’000 At 1 January 2018 6,185 361 6,546 Cash flows (5,580 ) (305 ) (5,885 ) Non- cashflows: Foreign Exchange 296 4 300 New leases 168 76 244 Loans and borrowings classified as non-current 31 December 2018 (232 ) 232 – Interest accruing in period 47 – 47 At 31 December 2018 884 368 1,252 |
17 Inventories (Tables)
17 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Inventories Abstract | |
Schedule of inventories | 2019 £’000 2018 £’000 2017 £’000 Finished goods – – 941 Total inventories – – 941 |
18 Trade and other payables (Ta
18 Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables [abstract] | |
Schedule of trade and other payables | Current 2019 £’000 2018 £’000 2017 £’000 Trade payables 725 286 2,271 Other payables 13 – 1,141 Accruals 1,765 1,025 3,090 Total financial liabilities, excluding loans and borrowings, 2,503 1,311 6,502 Tax and social security 86 347 359 Deferred revenue and government grants 1,905 445 1,141 Total trade and other payables 4,494 2,103 8,002 |
19 Borrowings (Tables)
19 Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [abstract] | |
Schedule of borrowings | 2019 £’000 2018 £’000 2017 £’000 Current Bank loans -– 4 11 Lease liabilities 233 80 39 Government and research loans 179 284 311 Total 412 368 361 Non-current Bank loans – – 5,207 Lease liabilities 912 170 29 Government and research loans 4,758 714 949 Total 5,670 884 6,185 |
20 Provisions (Tables)
20 Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions [abstract] | |
Schedule of provisions | 2019 £’000 2018 £’000 2017 £’000 Opening provision at 1 January 165 – – Provision (released)/recognised in the year (68 ) 165 – At 31 December 97 165 – Less: non-current portion (rental deposit and bond) – (165 ) – Current portion 97 – – |
21 Derivative financial liabi_2
21 Derivative financial liability - current (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Liability - Current | |
Schedule of derivative financial liability | 2019 £’000 2018 £’000 2017 £’000 Equity settled derivative financial liability – – – At 1 January – – 400 Warrants issued 1,148 – – Gain recognised in finance income within the consolidated statement (484 ) – (400 ) At 31 December 664 – – |
22 Financial instruments - ri_2
22 Financial instruments - risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of consolidated derivative financial instruments | Financial assets – amortised cost 2019 £’000 2018 £’000 2017 £’000 Cash and cash equivalents 10,928 2,343 13,204 Trade receivables 22 89 2,232 Other receivables 2,625 469 465 Total financial assets 13,575 2,901 15,901 Financial liabilities – amortised cost 2019 £’000 2018 £’000 2017 £’000 Trade payables 725 286 2,271 Other payables 13 – 1,141 Accruals 1,765 1,025 3,090 Borrowings 6,082 1,252 6,546 Total financial liabilities – amortised cost 8,585 2,563 13,048 Financial liabilities – fair value through profit and loss – current 2019 £’000 2018 £’000 2017 £’000 Equity settled derivative financial liability 664 – – |
Schedule of consolidated financial assets and liabilities at fair value | The following table gives information about how the fair value of this financial liability is determined, additional disclosure is given in note 21: Financial Fair Fair value Valuation Significant unobservable Relationship of Equity settled £664,000 Level 3 Monte Carlo simulation model Volatility rate of 78.4% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. The shorter the expected life the lower the fair value. Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. The higher the risk-free rate Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 78.3% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. The shorter the expected life Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. The higher the risk-free rate Financial Fair Fair value Valuation Significant unobservable Relationship of Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 42.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 7.6 years determined using the remaining life of the share options. The shorter the expected life the Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. The higher the Financial Fair Fair value Valuation Significant unobservable Relationship of Equity settled – Level 3 Black-Scholes option pricing model Volatility rate of 42.5% determined using historical volatility of comparable companies. The higher the volatility the higher the fair value. Expected life between a range of 0.1 and 8.6 years determined using the remaining life of the share options. The shorter the expected life the Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. The higher the |
Schedule of foreign exchange risk | The table below shows analysis of the Pounds Sterling equivalent of year-end cash and cash equivalent balances by currency: 2019 £’000 2018 £’000 2017 £’000 Cash and cash equivalents: Pounds Sterling 3,153 457 6,116 US Dollar 2,021 1,421 5,362 Euro 5,750 459 1,632 Other 4 6 94 Total 10,928 2,343 13,204 The table below shows the foreign currency exposure that gives rise to net currency gains and losses recognised in the consolidated statement of comprehensive income. Such exposures comprise the net monetary assets and monetary liabilities of the Group that are not denominated in the functional currency of the relevant Group entity. As at 31 December, these exposures were as follows: 2019 £’000 2018 £’000 2017 £’000 Net Foreign Currency Assets/(Liabilities): US Dollar 2,021 1,421 4,459 Euro 1,460 552 (362 ) Other 7 8 95 Total 3,488 1,981 4,192 |
Schedule of foreign currency exchange rates | The following table details the Group’s sensitivity to a 10% change in year-end exchange rates, which the Group feels is the maximum likely change in rate based upon recent currency movements, in the key foreign currency exchange rates against Pounds Sterling: Year ended 31 December 2019 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 202 54 – Total equity 202 31 1 Year ended 31 December 2018 US Dollar £’000 Euro £’000 Other £’000 Loss before tax – 168 – Total equity 142 168 – Year ended 31 December 2017 US Dollar £’000 Euro £’000 Other £’000 Loss before tax 307 (89 ) – Total equity 307 (89 ) – |
Schedule of contractual maturities of financial liabilities | The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities: 2019 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 2,503 – – – – Bank loans – – – – – Lease liabilities 79 165 317 735 – Government research loans – 272 238 2,851 3,317 Total 2,582 437 555 3,586 3,317 2018 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 1,311 – – – – Bank loans 3 2 – – – Finance lease 22 65 79 117 – Government research loans 44 240 406 414 – Total 1,380 307 485 531 – 2017 Up to 3 £’000 Between 3 and 12 months £’000 Between years £’000 Between £’000 Over £’000 Trade and other payables 6,502 – – – – Bank loans 120 359 2,201 3,926 – Finance lease 16 25 30 – – Government research loans 43 268 467 545 47 Total 6,681 649 2,698 4,471 47 |
23 Deferred tax (Tables)
23 Deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Tax | |
Schedule of movement on the deferred tax account | The movement on the deferred tax account is as shown below: 2019 £’000 2018 £’000 2017 £’000 Liability at 1 January – – – Arising on business combination – – – Credited to income on impairment and amortisation of intangibles – – – Credited to income statement – – – Foreign exchange gain – – – Liability at 31 December – – – |
Schedule of unused tax losses carried forward | Unused tax losses carried forward, subject to agreement with local tax authorities, were as follows: Gross losses £’000 Potential £’000 31 December 2019 49,565 8,426 31 December 2018 40,741 6,926 31 December 2017 38,377 6,639 |
Schedule of deferred tax liability | Details of the deferred tax liability are as follows: 2019 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,581 (1,581 ) – 2018 Asset £’000 Liability £’000 Net £’000 Business Combinations 1,690 (1,690 ) – 2017 Asset £’000 Liability £’000 Net £’000 Business Combinations 2,599 (2,599 ) – |
24 Share capital (Tables)
24 Share capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of classes of share capital [abstract] | |
Schedule of detailed information about share capital | Authorised, allotted and 2019 Number 2019 £ 2018 Number 2018 £ 2017 Number 2017 £ At 31 December Ordinary shares of 23,494,981 23,495 3,059,207 3,059 3,054,207 3,054 Deferred shares of £1 each 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 1,000,001 Total 1,023,496 1,003,060 1,003,055 |
Schedule of detailed information about type of Share Issue | The Company has the authority to purchase the deferred shares and may require the holder of the deferred shares to sell them for a price not exceeding 1p for all the deferred shares. Ordinary Shares Number Deferred Shares Number Share £ Total £’000 At 1 January 2017 2,434,973 1,000,001 63,713 2017 19 May 2017 Share issue to SIPP trustee (see note 27) 1,000 – 0.001 – 16 October 2017 Placing and Open Offer (see note 16) 615,734 – 10.0 6,157 7 November 2017 Share issue to SIPP trustee (see note 27) 2,500 – 0.001 – At 31 December 2017 3,054,207 1,000,001 69,870 2018 1 August 2018 Share issue to SIPP trustee (see note 27) 5,000 – 0.001 – At 31 December 2018 3,059,207 1,000,001 69,870 2019 26 February 2019 Subscription, Placing and Open Offer 17,410,774 – 0.77 13,406 8 October 2019 Share issue to SIPP trustee (see note 27) 25,000 – 0.001 – 29 October 2019 Registered Direct Offering 3,000,000 – 0.7874 2,362 At 31 December 2019 23,494,981 1,000,001 85,638 |
25 Reserves (Tables)
25 Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reserves | |
Schedule of reserves | The following describes the nature and purpose of each reserve within equity: Reserve Description and purpose Share premium Amount subscribed for share capital in excess of nominal value. Merger reserve Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. Foreign exchange reserve Gains/losses arising on retranslating the net assets of overseas operations into sterling. Accumulated deficit All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
27 Share-based Payments (Tables
27 Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payments | |
Schedule of outstanding granted options | Details of all share options granted under the Schemes are set out below: Date of grant At 1 January Granted in 2019 Exercised in Forfeited in At 31 December Exercise Price 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,589 – – – 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 21,500 – – (3,000 ) 18,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – (2,500 ) – £ 34.20 31 October 2016 23,411 – – (7,140 ) 16,271 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 1,625 – – – 1,625 £ 37.60 15 December 2016 4,600 – – – 4,600 £ 24.20 19 December 2016 35,866 – – (13,475 ) 22,391 £ 24.20 15 December 2017 45,885 – – (16,325 ) 29,560 £ 9.20 2 April 2018 997 – – – 997 £ 16.60 2 April 2018 4,500 – – – 4,500 £ 24.20 24 April 2019 – 219,000 – (49,500 ) 169,500 £ 1.46 2 October 2019 – 50,000 – – 50,000 £ 1.05 158,966 269,000 (91,940) 336,026 Options exercisable at 31 December 2019 131,094 Weighted average exercise price of outstanding options at 31 December 2019 £ 8.48 Weighted average exercise price of options exercised in 2019 n/a Weighted average exercise price of options forfeited in 2019 £ 13.26 Weighted average exercise price of options granted in 2019 £ 1.38 Weighted average remaining contractual life of outstanding options at 31 December 2019 7.9 years On 2 March 2020 a resolution was passed at a general meeting of shareholders of the Company to consolidate it ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. Date of grant At 1 January Granted in 2018 Exercised in Forfeited in At 31 December Exercise Price 31 December 2008 1,306 – – (1,306 ) – £ 28.50 31 December 2008 150 – – (150 ) – £ 79.70 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,789 – – (200 ) 1,589 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 44,000 – – (22,500 ) 21,500 £ 1.50 11 July 2014 100 – – – 100 £ 1.50 31 October 2016 2,500 – – – 2,500 £ 34.20 31 October 2016 30,380 – – (6,969 ) 23,411 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 2,000 – – (375 ) 1,625 £ 37.60 15 December 2016 5,100 – – (500 ) 4,600 £ 24.20 19 December 2016 55,210 – – (19,344 ) 35,866 £ 24.20 15 December 2017 67,560 – – (21,675 ) 45,885 £ 9.20 2 April 2018 – 997 – – 997 £ 16.60 2 April 2018 – 4,500 – – 4,500 £ 24.20 226,488 5,497 – (73,019) 158,966 Options exercisable at 31 December 2018 112,393 Weighted average exercise price of outstanding options at 31 December 2018 £ 22.02 Weighted average exercise price of options exercised in 2018 n/a Weighted average exercise price of options forfeited in 2018 £ 15.98 Weighted average exercise price of options granted in 2018 £ 16.60 Weighted average remaining contractual life of outstanding options at 31 December 2018 5.7 years Date of grant At 1 January Granted in 2017 Exercised in Forfeited in At 31 December Exercise Price 31 December 2008 1,306 – – – 1,306 £ 28.50 31 December 2008 150 – – – 150 £ 79.70 1 April 2010 1,255 – – – 1,255 £ 80.00 20 August 2010 2,088 – – 2,088 £ 83.80 13 September 2011 150 – – – 150 £ 83.80 20 April 2012 1,789 – – – 1,789 £ 83.80 9 May 2014 10,000 – – – 10,000 £ 1.50 30 June 2014 44,000 – – – 44,000 £ 1.50 11 July 2014 150 – – 50 100 £ 1.50 31 October 2016 2,500 – – – 2,500 £ 34.20 31 October 2016 30,380 – – – 30,380 £ 53.60 14 December 2016 400 – – – 400 £ 31.00 14 December 2016 500 – – – 500 £ 34.00 14 December 2016 150 – – 150 – £ 34.20 14 December 2016 150 – – 150 – £ 34.60 14 December 2016 150 – – 150 – £ 34.80 14 December 2016 2,000 – – – 2,000 £ 37.40 14 December 2016 2,000 – – – 2,000 £ 37.60 15 December 2016 9,850 – – 4,750 5,100 £ 24.20 19 December 2016 55,497 – – 287 55,210 £ 24.20 15 December 2017 – 67,560 – – 67,560 £ 9.20 164,465 67,560 – (5,537) 226,488 Options exercisable at 31 December 2017 50,023 Weighted average exercise price of outstanding options at 31 December 2017 £ 20.06 Weighted average exercise price of options exercised in 2017 n/a Weighted average exercise price of options forfeited in 2017 £ 24.84 Weighted average exercise price of options granted in 2017 £ 9.20 Weighted average remaining contractual life of outstanding options at 31 December 2017 8.3 years |
Schedule of fair value of options granted | The following information is relevant in the determination of the fair value of options granted during the year 2019 under the equity share based remuneration schemes operated by the Group. April 2019 October 2019 Number of options 219,000 50,000 Option pricing models used Black-Scholes Black-Scholes Share price £ 2.30 * £ 1.126 * Exercise price of options issued in year £ 1.46 £ 1.05 Contractual life 10 years 10 years Expected life 5 years 5 years Volatility 75.3 %** 78.3 %** Expected dividend yield 0 % 0 % Risk free rate 0.85 % 0.26 % * The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2018 under the equity share based remuneration schemes operated by the Group. 2018 Number of options 5,500 Option pricing models used Monte-Carlo Share price £ 5.40 * Exercise price of options issued in year £16.60–£24.40 Contractual life 10 years Expected life 5 years Volatility 45.2 %** Expected dividend yield 0 % Risk free rate 1.03 % * The share price used in the determination of the fair value of the options granted in 2018 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. The following information is relevant in the determination of the fair value of options granted during the year 2017 under the equity share based remuneration schemes operated by the Group. 2017 Number of options 67,562 Option pricing models used Monte-Carlo Share price £ 8.20 * Exercise price of options issued in year £ 9.20 Contractual life 10 years Expected life 5 years Volatility 42.5 %** Expected dividend yield 0 % Risk free rate 0.73 % * The share price used in the determination of the fair value of the options granted in 2017 was the share price on the date of grant. ** Volatility was calculated with reference to the historic share price volatility of comparable companies measured over a five-year period. |
32. Effects of changes in accou
32. Effects of changes in accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Effects Of Changes In Accounting Policies | |
Schedule of right-of-use assets and lease liabilities | On adoption of IFRS 16, the Group recognised right-of-use assets and lease liabilities as follows: Classification Under IAS17 Right-of-use assets Lease liabilities All other operating leases Property leases: Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments. Lease liabilities were measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate as at 1 January 2019. The Group’s incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 3%. Finance leases Measured based on the carrying values for the lease assets and liabilities immediately before the date of initial application (i.e. carrying values brought forward, unadjusted). |
Schedule of impact of adopting IFRS 16 on the statement of financial position | The following table presents the impact of adopting IFRS 16 on the statement of financial position as at 1 January 2019: Adjustments 31 December 2018 As originally presented £’000 IFRS 16 £’000 1 January 2019 £’000 Assets Right-of-use asset (a) – 395 395 Other receivables (b) 1,564 152 1,716 Liabilities Lease liabilities (c) (250 ) (547 ) (796 ) The adjustments to right-of-use asset is as follows: £’000 a) Right-of-use assets 395 b) Lease receivable on sub-let property 152 c) The following table reconciles the minimum lease commitments disclosed in the Group’s 31 December 2018 annual financial statements to the amount of lease liabilities recognised on 1 January 2019: 1 January 2019 £’000 Minimum operating lease commitment as 31 December 2018 577 Less: low value leases not recognised under IFRS16 (5) Less: effect of discounting using incremental borrowing rate as at the date of initial application (25) Lease liabilities recognised at 1 January 2019 547 |
33 Post balance sheet events (T
33 Post balance sheet events (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Post Balance Sheet Events | |
Schedule of employee share option plans and warrants | The share consolidation will have an impact on the ordinary shares, any employee share option plans as well as warrants. As a result of share consolidation: Pre-Split Post-Split Weighted average number of shares outstanding - basic and diluted 366,611,759 18,330,588 Ordinary shares outstanding 469,899,613 23,494,981 Outstanding employee share options 6,720,722 336,036 Outstanding DARA options 57,150 2,857 Outstanding DARA warrants 92,480 4,624 |
Schedule of estimated one-time cash outflows and non-cash costs | The provisional estimated one-time cash outflows and non-cash costs of these actions are expected to be as follows: Estimated cash £’000 Staff redundancy 933 Repayment of loans, net of deposit returned 3,569 Property lease termination costs – Settlement of lease liabilities 131 Repayment of grant funding 230 Other 70 4,933 Estimated non-cash £’000 Impairment of acquired IPRD 9,300 Impairment of goodwill 2,291 Write down of tangible assets to net realisable value 975 Right of use asset adjustment (61 ) Other (186 ) 12,319 |
1 Accounting policies (Details)
1 Accounting policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) |
Summary description | Trading company |
PharMida AG [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | PharMida AG |
Summary description | Dormant |
Midatech Pharma (Wales) Limited [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma (Wales) Limited (formerly Q Chip Limited) |
Summary description | Trading company |
Midatech Pharma PTY [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma Pty |
Summary description | Trading company |
Midatech Pharma Plc [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma plc |
Summary description | Ultimate holding company |
Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) (until 1 November 2018) |
Summary description | Trading company |
Dara Therapeutics, Inc. [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Dara Therapeutics, Inc. (until 1 November 2018) |
Summary description | Dormant |
Midatech Limited [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Entity | Midatech Limited |
Summary description | Trading company |
1 Accounting policies (Details
1 Accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | Indefinite life |
In-Process Research and Development ("IPRD") [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | In process, not yet amortising |
IT And Website Costs [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | 4 years |
Product and Marketing Rights [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Useful economic lives | Between 2 and 12 years |
1 Accounting policies (Detail_2
1 Accounting policies (Details 3) | 12 Months Ended |
Dec. 31, 2019 | |
Fixtures And Fittings [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 25% per annum straight line |
Leasehold Improvements [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | the shorter of 10% per annum straight line or over the lease term |
Computer Equipment [member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 25% per annum straight line |
Laboratory Equipment [Member] | |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |
Description of useful life, property, plant and equipment | 15% - 25% per annum straight line |
1 Accounting policies (Detail_3
1 Accounting policies (Details Narrative) £ / shares in Units, £ in Thousands | Mar. 02, 2020£ / shares | Dec. 31, 2019GBP (£)Number£ / shares | Dec. 31, 2018GBP (£)Number | Dec. 31, 2017GBP (£)Number | Dec. 31, 2016GBP (£) |
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Accumulated deficit | £ (99,839) | £ (89,720) | £ (74,654) | ||
Loss for the year | (10,085) | (15,030) | (16,064) | ||
Net cash used in operating activities | (6,489) | (13,450) | (12,953) | ||
Cash and cash equivalents | 10,928 | 2,343 | 13,204 | £ 17,608 | |
Impairment charge on non financial assets | |||||
Equity offering | £ 3,700 | ||||
Number of cash generating unit | Number | 1 | 1 | 1 | ||
Events After Reporting Period [member] | |||||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Description of stock split | ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. | ||||
Deferred Shares [Member] | |||||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Share par value (in dollars per share) | £ / shares | £ 1 | ||||
Ordinary Shares [Member] | |||||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Share par value (in dollars per share) | £ / shares | £ 0.001 | £ 0.00005 | |||
Midatech Pharma (Wales) Limited [Member] | In-Process Research and Development ("IPRD") [Member] | |||||
DisclosureOfAccountingPoliciesLineItems [Line Items] | |||||
Impairment charge on non financial assets | £ 1,500 |
2 Critical accounting estimat_2
2 Critical accounting estimates and judgements (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Goodwill | £ 23,000 | |||
Intangible assets other than goodwill | 10,100 | |||
Impairment charge on non financial assets | ||||
Unused tax losses for which no deferred tax asset recognised | 49,600 | 40,700 | 38,400 | |
Cash and cash equivalents | 10,928 | 2,343 | 13,204 | £ 17,608 |
Proceeds from issuance | 14,108 | 5,728 | ||
Loss for the year attributable to the owners of the parent | (10,085) | (15,030) | (16,064) | |
Net cash used in operating activities | (6,489) | (13,450) | (12,953) | |
Accumulated deficit | (99,839) | £ (89,720) | (74,654) | |
Payments for share issue costs | £ 3,700 | |||
SPAIN | Lease [Member] | ||||
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Lease maturity terms | 5 years | |||
Description of lease terms | The lease allows the Group to break the lease at any-time with one-month notice, provided it returns the property to its original condition. | |||
Midatech Pharma (Wales) Limited [Member] | In-Process Research and Development ("IPRD") [Member] | ||||
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Impairment charge on non financial assets | £ 1,500 | |||
Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | United States Food and Drug Administration [Member] | ||||
CriticalAccountingEstimatesAndJudgementsLineItems [Line Items] | ||||
Fees | £ 950 |
3 Segment Information (Details)
3 Segment Information (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | £ 312 | £ 149 | £ 149 |
Continuing Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 312 | 149 | 149 |
Continuing Operations [Member] | UNITED KINGDOM | |||
Disclosure of operating segments [line items] | |||
Revenue | 197 | 149 | 79 |
Continuing Operations [Member] | Rest of Europe [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 55 | 70 | |
Continuing Operations [Member] | Rest of the World [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 60 | ||
Discontinued Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | £ 312 | 4,031 | 6,758 |
Discontinued Operations [Member] | UNITED STATES | |||
Disclosure of operating segments [line items] | |||
Revenue | £ 3,882 | £ 6,609 |
3 Segment Information (Details
3 Segment Information (Details 1) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customers A [Member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue in excess of 10% | 63.00% | 100.00% | 55.00% |
Customers B [Member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue in excess of 10% | 19.00% | ||
Customers C [Member] | |||
Disclosure of operating segments [line items] | |||
Percentage of revenue in excess of 10% | 18.00% |
3 Segment Information (Detail_2
3 Segment Information (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | £ 312 | £ 149 | £ 149 |
Grant revenue | 362 | 1,789 | 840 |
Total revenue | 674 | 1,938 | 989 |
Other income | 15 | ||
Research and development costs | (7,843) | (9,359) | (8,329) |
Distribution costs, sales and marketing | (323) | (170) | |
Administrative costs | (3,841) | (4,394) | (4,266) |
Depreciation | (979) | (1,016) | (983) |
Impairment of intangible assets | (1,500) | ||
Loss from operations | (11,318) | (11,815) | (13,276) |
Finance income | 492 | 2 | 415 |
Finance expense | (97) | (587) | (166) |
Loss before tax | (10,923) | (12,400) | (12,970) |
Taxation | 1,785 | 2,032 | 1,265 |
Loss for the year | (10,085) | (15,030) | (16,064) |
Loss from continuing operations | (9,138) | (10,368) | (11,705) |
Loss from discontinued operations | (947) | (4,662) | (4,359) |
Discontinued Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 312 | 4,031 | 6,758 |
Grant revenue | 362 | 1,789 | 840 |
Total revenue | 674 | 5,820 | 7,598 |
Other income | 15 | ||
Cost of sales | (1,286) | (926) | |
Research and development costs | (6,624) | (8,838) | (7,711) |
Distribution costs, sales and marketing | (323) | (4,357) | (7,647) |
Administrative costs | (3,775) | (4,959) | (4,832) |
Loss from discontinued operations, net of tax | (947) | (1,407) | |
Depreciation | (1,282) | (1,016) | (983) |
Amortisation | (3) | (434) | (1,577) |
Impairment of intangible assets | (1,500) | ||
Loss from operations | (12,265) | (16,477) | (17,578) |
Finance income | 492 | 2 | 415 |
Finance expense | (97) | (587) | (166) |
Loss before tax | (11,870) | (17,062) | (17,329) |
Taxation | 1,785 | 2,032 | 1,265 |
Loss for the year | (10,085) | (15,030) | (16,064) |
Loss from continuing operations | (9,138) | (10,368) | (11,705) |
Loss from discontinued operations | (947) | (4,662) | (4,359) |
Pipeline R&D [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 312 | 149 | 149 |
Grant revenue | 362 | 1,789 | 840 |
Total revenue | 674 | 1,938 | 989 |
Other income | 15 | ||
Cost of sales | |||
Research and development costs | (6,624) | (8,555) | (7,355) |
Distribution costs, sales and marketing | (323) | (170) | |
Administrative costs | (3,775) | (4,087) | (4,266) |
Loss from discontinued operations, net of tax | |||
Depreciation | (1,282) | (1,011) | (974) |
Amortisation | (3) | (100) | |
Impairment of intangible assets | (1,500) | ||
Loss from operations | (11,318) | (11,815) | (13,276) |
Finance income | 492 | 2 | 415 |
Finance expense | (97) | (587) | (109) |
Loss before tax | (10,923) | (12,400) | (12,970) |
Taxation | 1,785 | 2,032 | 1,265 |
Loss for the year | (9,138) | (10,368) | (11,705) |
Commercial [Member] | Discontinued Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,882 | 6,609 | |
Grant revenue | |||
Total revenue | 3,882 | 6,609 | |
Other income | |||
Cost of sales | (1,286) | (926) | |
Research and development costs | (283) | (356) | |
Distribution costs, sales and marketing | (4,357) | (7,477) | |
Administrative costs | (872) | (566) | |
Loss from discontinued operations, net of tax | (947) | (1,407) | |
Depreciation | (5) | (9) | |
Amortisation | (334) | (1,577) | |
Impairment of intangible assets | |||
Loss from operations | (947) | (4,662) | (4,302) |
Finance income | |||
Finance expense | (57) | ||
Loss before tax | (947) | (4,662) | (4,359) |
Taxation | |||
Loss for the year | £ (947) | £ (4,662) | £ (4,359) |
3 Segment Information (Detail_3
3 Segment Information (Details 3) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | |||
Non-current assets | £ 17,158 | £ 14,826 | £ 30,641 |
SPAIN | |||
Disclosure of operating segments [line items] | |||
Non-current assets | 4,383 | 1,860 | 2,154 |
UNITED KINGDOM | |||
Disclosure of operating segments [line items] | |||
Non-current assets | £ 12,775 | £ 12,966 | 15,331 |
UNITED STATES | |||
Disclosure of operating segments [line items] | |||
Non-current assets | £ 13,156 |
3 Segment Information (Detail_4
3 Segment Information (Details Narrative) - Number | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Continuing Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Number of reportable operating segments | 3 | 1 | 3 |
Discontinued Operations [Member] | |||
Disclosure of operating segments [line items] | |||
Number of customer accounted least 10% of total revenue | 4 | 3 |
4 Discontinued operations (Deta
4 Discontinued operations (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net cash inflow on disposal of discontinued operation | £ 947 | ||
Property, plant and equipment | 2,154 | 1,983 | 2,529 |
Intangibles | 10,100 | ||
Inventory | 941 | ||
Trade and other payables | £ 4,494 | 2,103 | £ 8,002 |
Loss on disposal | 1,407 | ||
Discontinued Operations [Member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Cash consideration received | 9,350 | ||
Total consideration received | 9,350 | ||
Cash disposed of | (91) | ||
Net cash inflow on disposal of discontinued operation | 9,259 | ||
Net assets disposed (other than cash): | 3 | ||
Property, plant and equipment | 15,662 | ||
Intangibles | 948 | ||
Inventory | 629 | ||
Trade and other payables | (2,734) | ||
Total net assets disposed of (other than cash) | (14,508) | ||
Loss on disposal of discontinued operation before and after tax | (5,249) | ||
Foreign exchange gain realised on disposal | 3,842 | ||
Loss on disposal | £ (1,407) |
4 Discontinued operations (De_2
4 Discontinued operations (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |||
Revenue | £ 3,882 | £ 6,609 | |
Expenses other than finance costs | £ (947) | (7,137) | (10,911) |
Finance costs | (57) | ||
Impairment | |||
Loss from discontinued operations before tax | (947) | (3,255) | (4,359) |
Taxation | |||
Loss on disposal of discontinued operations | (1,407) | ||
Loss for the year from discontinued operations after tax | £ (947) | £ (4,662) | £ (4,359) |
4 Discontinued operations (De_3
4 Discontinued operations (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating activities | £ (6,489) | £ (13,450) | £ (12,953) |
Investing activities | (3,807) | 9,042 | (1,470) |
Financing activities | 18,733 | (6,472) | 10,277 |
Discontinued Operations [Member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating activities | (5,368) | (1,654) | |
Investing activities | (947) | ||
Financing activities | (7) | (34) | |
Net cash flow from discontinued operations | £ (947) | £ (5,375) | £ (1,688) |
4 Discontinued operations (De_4
4 Discontinued operations (Details Narrative) - Barings LLC [Member] £ in Thousands | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Disclosure of analysis of single amount of discontinued operations [line items] | |
Total consideration received | £ 19,000 |
Contingent payable | £ 6,000 |
5 Loss from operations (Details
5 Loss from operations (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss from operations is stated after charging/(crediting): | |||
Changes in inventories of finished goods and work in progress | £ (976) | £ 202 | |
Depreciation of property, plant and equipment | |||
From continuing operations | £ 979 | 1,011 | 974 |
From discontinued operations | 5 | 9 | |
Depreciation of right of use asset | |||
From continuing operations | 303 | ||
From discontinued operations | |||
Amortisation of intangible assets - product and marketing rights | |||
From continuing operations | 3 | 100 | 193 |
From discontinued operations | 334 | 1,384 | |
Impairment of intangible assets | 1,500 | ||
Fees payable to the Company's auditor for the audit of the parent company | 110 | 111 | 110 |
Fees payable to the Company's subsidiary auditors for the audits of the susidiary accounts | 48 | 143 | 140 |
Fees payable to the Company's auditor for: | |||
Other services | 66 | 83 | 100 |
Operating lease expense: | |||
Property | 386 | 277 | |
Plant and machinery | |||
Arrangement/penalty fees for loan facility | 469 | 57 | |
Foreign exchange(gain)/ loss | 131 | 212 | (39) |
Loss on disposal of property, plant and equipment | 165 | 27 | |
Equity settled share based payment | £ (34) | £ (36) | £ 520 |
6 Staff costs (Details)
6 Staff costs (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Staff Costs | |||
Wages and salaries | £ 2,762 | £ 5,393 | £ 5,278 |
Defined contribution pension cost (note 26) | 90 | 149 | 158 |
Social security contributions and similar taxes | 565 | 639 | 643 |
Share-based payment | (34) | (36) | 520 |
Staff costs gross | 3,383 | 6,145 | 6,599 |
Continuing operations | 3,383 | 4,352 | 4,578 |
Discontinued operations | 1,793 | 2,021 | |
Staff costs | £ 3,383 | £ 6,145 | £ 6,599 |
6 Staff costs (Details 1)
6 Staff costs (Details 1) - Number | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
StaffCostsLineItems [Line Items] | |||
Average number of staff employee | 65 | 85 | 85 |
Research And Development [Member] | |||
StaffCostsLineItems [Line Items] | |||
Average number of staff employee | 52 | 63 | 62 |
General And Administration [Member] | |||
StaffCostsLineItems [Line Items] | |||
Average number of staff employee | 13 | 16 | 17 |
Sales And Marketing [Member] | |||
StaffCostsLineItems [Line Items] | |||
Average number of staff employee | 6 | 6 |
6 Staff costs (Details 2)
6 Staff costs (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Staff Costs | |||
Wages and salaries | £ 656 | £ 900 | £ 811 |
Defined contribution pension cost | 42 | 39 | 68 |
Payments made to third parties | 82 | 142 | 142 |
Social security contributions and similar taxes | 72 | 77 | 97 |
Benefits in kind | 2 | 3 | 3 |
Share-based payment | (58) | (92) | 388 |
Key management personnel compensation | £ 796 | £ 1,069 | £ 1,509 |
6 Staff costs (Details 3)
6 Staff costs (Details 3) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Staff Costs | |||
Salary | £ 266 | £ 110 | £ 299 |
Total pension and other post-employment benefit costs | 22 | 4 | 10 |
Benefits in kind | 1 | 1 | 1 |
Termination benefits | 99 | ||
Director's emoluments | £ 289 | £ 214 | £ 310 |
7 Finance income and expense (D
7 Finance income and expense (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance income | |||
Interest received on bank deposits | £ 8 | £ 2 | £ 15 |
Gain on equity settled derivative financial liability | 484 | 400 | |
Total finance income | 492 | 2 | 415 |
Finance expense | |||
Bank loans | 6 | 587 | 18 |
Other loans | 91 | 91 | |
Total finance expense | £ 97 | £ 587 | £ 166 |
8 Taxation (Details)
8 Taxation (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax credit | |||
Current tax credited to the income statement | £ 1,782 | £ 1,952 | £ 1,253 |
Taxation payable in respect of foreign subsidiary | (67) | ||
Adjustment in respect of prior year | 3 | 128 | |
Total current tax credit | 1,785 | 2,013 | 1,253 |
Deferred tax credit | |||
Reversal of temporary differences | 19 | 12 | |
Total tax credit | £ 1,785 | £ 2,032 | £ 1,265 |
8 Taxation (Details 1)
8 Taxation (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation Abstract | |||
Loss for the year, continuing and discontinued operations | £ (10,085) | £ (15,030) | £ (16,064) |
Income tax credit - continuing operations | (1,785) | (2,032) | (1,265) |
Loss before tax | (11,870) | (17,062) | (17,329) |
Expected tax credit based on the standard rate of United Kingdom corporation tax at the domestic rate of 19% (2018: 19%, 2017: 19.25%) | (2,255) | (3,241) | (3,336) |
Expenses not deductible for tax purposes | 1,087 | 2,492 | 412 |
Unrelieved tax losses and other deductions | (114) | ||
Adjustment in respect of prior period | (3) | (129) | |
Surrender of tax losses for R&D tax refund | (1,810) | (1,955) | (1,196) |
Unrelieved tax losses and other deductions arising in the period | (220) | (156) | |
Foreign exchange differences | 1 | (26) | (84) |
Deferred tax not recognised | 1,309 | 1,047 | 3,095 |
Total tax credited to the income statement | £ (1,785) | £ (2,032) | £ (1,265) |
8 Taxation (Details Narrative)
8 Taxation (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation Abstract | |||
Applicable tax rate (in percent) | 19.00% | 19.00% | 19.25% |
9 Loss per share (Details)
9 Loss per share (Details) - GBP (£) £ / shares in Units, £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss used in basic EPS and diluted EPS: | |||
Continuing operations | £ (9,138) | £ (10,368) | £ (11,705) |
Discontinued operations | £ (947) | £ (4,662) | £ (4,359) |
Denominator | |||
Weighted average number of ordinary shares used in basic EPS (in shares) | 18,330,588 | 3,056,303 | 2,565,866 |
Basic and diluted loss per share: | |||
Continuing operations - pence | £ (50) | £ (339) | £ (456) |
Discontinued operations - pence | £ (5) | £ (153) | £ (170) |
10 Property, plant and equipm_3
10 Property, plant and equipment (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | £ 1,983 | £ 2,529 | |
Additions | |||
Balance at end | 2,154 | 1,983 | 2,529 |
Laboratory Equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 1,325 | 1,449 | |
Balance at end | 998 | 1,325 | 1,449 |
Computer equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 118 | 150 | |
Balance at end | 71 | 118 | 150 |
Leasehold improvements [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 528 | 874 | |
Balance at end | 244 | 528 | 874 |
Fixtures And Fittings [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 12 | 56 | |
Balance at end | 13 | 12 | 56 |
Right Of Use [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 828 | ||
Balance at end | 828 | 828 | |
Accumulated depreciation and amortisation [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 4,317 | 3,846 | 2,792 |
Charge for the year | 1,282 | 1,016 | 983 |
Disposals | (599) | (14) | |
Exchange differences | (202) | 53 | 85 |
Balance at end | 5,397 | 4,317 | 3,846 |
Accumulated depreciation and amortisation [Member] | Laboratory Equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 2,326 | 2,220 | 1,649 |
Charge for the year | 507 | 499 | 542 |
Disposals | (421) | (14) | |
Exchange differences | (93) | 28 | 43 |
Balance at end | 2,740 | 2,326 | 2,220 |
Accumulated depreciation and amortisation [Member] | Computer equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 265 | 192 | 122 |
Charge for the year | 70 | 72 | 68 |
Disposals | (3) | ||
Exchange differences | (3) | 4 | 2 |
Balance at end | 332 | 265 | 192 |
Accumulated depreciation and amortisation [Member] | Leasehold improvements [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 1,485 | 1,238 | 872 |
Charge for the year | 400 | 403 | 330 |
Disposals | (175) | ||
Exchange differences | (91) | 19 | 36 |
Balance at end | 1,794 | 1,485 | 1,238 |
Accumulated depreciation and amortisation [Member] | Fixtures And Fittings [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 241 | 196 | 149 |
Charge for the year | 2 | 43 | 43 |
Disposals | |||
Exchange differences | (8) | 2 | 4 |
Balance at end | 235 | 241 | 196 |
Accumulated depreciation and amortisation [Member] | Right Of Use [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | |||
Disposals | 303 | ||
Exchange differences | (7) | ||
Balance at end | 296 | ||
Carrying Amount [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 6,300 | 6,375 | 5,558 |
Additions | 1,209 | 503 | 707 |
Adoption of IFRS 16 Leases | 395 | ||
Effect of modification to lease terms | (82) | ||
Disposals | (635) | (41) | |
Exchange differences | (271) | 57 | 151 |
Balance at end | 7,551 | 6,300 | 6,375 |
Carrying Amount [Member] | Laboratory Equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 3,651 | 3,669 | 3,050 |
Additions | 223 | 353 | 591 |
Disposals | (401) | (41) | |
Exchange differences | (136) | 30 | 69 |
Balance at end | 3,738 | 3,651 | 3,669 |
Carrying Amount [Member] | Computer equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 383 | 342 | 281 |
Additions | 23 | 40 | 57 |
Disposals | |||
Exchange differences | (3) | 1 | 4 |
Balance at end | 403 | 383 | 342 |
Carrying Amount [Member] | Leasehold improvements [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 2,013 | 2,112 | 1,999 |
Additions | 137 | 106 | 41 |
Disposals | (229) | ||
Exchange differences | (112) | 24 | 72 |
Balance at end | 2,038 | 2,013 | 2,112 |
Carrying Amount [Member] | Fixtures And Fittings [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | 253 | 252 | 228 |
Additions | 4 | 4 | 18 |
Disposals | (5) | ||
Exchange differences | (9) | 2 | 6 |
Balance at end | 248 | 253 | £ 252 |
Carrying Amount [Member] | Right Of Use [Member] | |||
Reconciliation of changes in property, plant and equipment [Roll Forward] | |||
Balance at beginning | |||
Additions | 822 | ||
Adoption of IFRS 16 Leases | 395 | ||
Effect of modification to lease terms | (82) | ||
Exchange differences | (11) | ||
Balance at end | £ 1,124 |
11 Leases (Details)
11 Leases (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Right of Use Asset | |||
Balance at beginning | |||
Depreciation | 303 | ||
Balance at ending | |||
Lease Liabilities | |||
Balance at beginning | 250 | ||
Lease payments | (450) | (64) | (25) |
Balance at ending | 250 | ||
Land and buildings [member] | |||
Right of Use Asset | |||
Balance at beginning | 572 | 808 | |
Additions | 822 | ||
Effect of modification to lease terms | (82) | ||
Depreciation | (303) | ||
Exchange differences | (4) | ||
Balance at ending | 828 | 572 | £ 808 |
Lease Liabilities | |||
Balance at beginning | 546 | ||
Additions | 822 | ||
Effect of modification to lease terms | (82) | ||
Interest expenses | 24 | ||
Lease payments | (391) | ||
Exchange differences | (12) | ||
Balance at ending | £ 907 | £ 546 |
11 Leases (Details 1)
11 Leases (Details 1) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | £ 395 | |||
Land and buildings [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | £ 828 | 572 | £ 808 | |
Land and buildings [member] | Expiring In one year or less [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | 383 | 449 | ||
Land and buildings [member] | Expiring between one and five years [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | 189 | 359 | ||
Other assets [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | 5 | 40 | ||
Other assets [member] | Expiring In one year or less [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | 1 | 8 | ||
Other assets [member] | Expiring between one and five years [member] | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Operating leases of right-of-use asset | £ 4 | £ 32 |
12 Intangible assets (Details)
12 Intangible assets (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | £ 12,374 | £ 27,647 | £ 27,647 |
Additions | |||
Acquired in business combinations | |||
Balance at end | 12,379 | 12,374 | 27,647 |
Product and Marketing Rights [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 4,117 | ||
Balance at end | 4,117 | ||
IT and Website Costs [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 5 | 8 | |
Balance at end | 10 | 5 | 8 |
Goodwill [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 2,291 | 13,444 | |
Balance at end | 2,291 | 2,291 | 13,444 |
In-Process Research and Development ("IPRD") [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 10,078 | 10,078 | |
Balance at end | 10,078 | 10,078 | 10,078 |
Carrying Amount [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 15,697 | 46,705 | 48,595 |
Additions | 9 | 778 | |
Foreign exchange | (2) | 1,822 | (2,668) |
Disposals | (32,830) | ||
Balance at end | 15,704 | 15,697 | 46,705 |
Carrying Amount [Member] | Product and Marketing Rights [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 19,856 | 21,481 | |
Additions | |||
Foreign exchange | 1,166 | (1,625) | |
Disposals | (21,022) | ||
Balance at end | 19,856 | ||
Carrying Amount [Member] | IT and Website Costs [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 28 | 27 | 26 |
Additions | 9 | ||
Foreign exchange | (2) | 1 | 1 |
Disposals | |||
Balance at end | 35 | 28 | 27 |
Carrying Amount [Member] | Goodwill [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 2,291 | 13,444 | 14,488 |
Additions | |||
Foreign exchange | 655 | (1,044) | |
Disposals | (11,808) | ||
Balance at end | 2,291 | 2,291 | 13,444 |
Carrying Amount [Member] | In-Process Research and Development ("IPRD") [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 13,378 | 13,378 | 12,600 |
Additions | 778 | ||
Foreign exchange | |||
Disposals | |||
Balance at end | 13,378 | 13,378 | 13,378 |
Accumulated Amortisation [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 3,323 | 19,058 | 17,423 |
Amortisation charge for the year | 3 | 434 | 1,577 |
Impairment | 1,500 | ||
Foreign exchange | (1) | 934 | (1,442) |
Disposals | (17,103) | ||
Balance at end | 3,325 | 3,323 | 19,058 |
Accumulated Amortisation [Member] | Product and Marketing Rights [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 15,739 | 15,608 | |
Additions | |||
Amortisation charge for the year | 431 | 1,574 | |
Impairment | |||
Foreign exchange | 933 | (1,443) | |
Disposals | (17,103) | ||
Balance at end | 15,739 | ||
Accumulated Amortisation [Member] | IT and Website Costs [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 23 | 19 | 15 |
Acquired in business combinations | 3 | ||
Amortisation charge for the year | 3 | 3 | |
Impairment | |||
Foreign exchange | (1) | 1 | 1 |
Disposals | |||
Balance at end | 25 | 23 | 19 |
Accumulated Amortisation [Member] | Goodwill [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | |||
Amortisation charge for the year | |||
Impairment | |||
Foreign exchange | |||
Disposals | |||
Balance at end | |||
Accumulated Amortisation [Member] | In-Process Research and Development ("IPRD") [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Balance at beginning | 3,300 | 3,300 | 1,800 |
Additions | |||
Amortisation charge for the year | |||
Impairment | 1,500 | ||
Foreign exchange | |||
Disposals | |||
Balance at end | £ 3,300 | £ 3,300 | £ 3,300 |
12 Intangible assets (Details 1
12 Intangible assets (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | £ 10,100 | ||
In-Process Research and Development ("IPRD") [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | In process, not yet amortising | ||
In-Process Research and Development ("IPRD") [Member] | Midatech Pharma (Wales) Limited [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a in process | n/a in process | n/a in process |
Product and Marketing Rights [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | Between 2 and 12 years | ||
Product and Marketing Rights [Member] | MTX110 acquired IPRD [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a in process | n/a in process | n/a in process |
Product and Marketing Rights [Member] | Zuplenz [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a | n/a | 11 |
Product and Marketing Rights [Member] | Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining amortisation period | n/a | n/a | Between 1 and 3 |
Carrying Amount [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | £ 10,078 | £ 10,078 | £ 14,195 |
Carrying Amount [Member] | In-Process Research and Development ("IPRD") [Member] | Midatech Pharma (Wales) Limited [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 9,300 | 9,300 | 9,300 |
Carrying Amount [Member] | Product and Marketing Rights [Member] | MTX110 acquired IPRD [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 778 | 778 | 778 |
Carrying Amount [Member] | Product and Marketing Rights [Member] | Zuplenz [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 2,122 | ||
Carrying Amount [Member] | Product and Marketing Rights [Member] | Midatech Pharma US, Inc. (formerly DARA Biosciences, Inc.) [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | £ 1,995 |
13 Impairment testing (Details)
13 Impairment testing (Details) - Midatech Pharma (Wales) Limited [Member] - Cash-Generating Units [Member] - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ImpairmentTestingLineItems [Line Items] | |||
IPRD carrying amount | £ 9,300 | £ 9,300 | £ 9,300 |
Goodwill carrying amount | £ 2,291 | £ 2,291 | £ 2,291 |
Valuation Basis | Value in use |
13 Impairment testing (Details
13 Impairment testing (Details 1) - Midatech Pharma (Wales) Limited [Member] - Cash-Generating Units [Member] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ImpairmentTestingLineItems [Line Items] | |||
Pre-tax discount rate | 18.40% | 17.70% | 17.90% |
Cumulative probability of success of projects | 81.00% | 81.00% | 81.00% |
13 Impairment testing (Detail_2
13 Impairment testing (Details 2) - Cash-Generating Units [Member] - Midatech Pharma (Wales) Limited [Member] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ImpairmentTestingLineItems [Line Items] | |||
Pre-tax discount rate for all projects | 21.00% | 29.80% | 21.00% |
Cumulative probability of success of all projects | 59.00% | 34.00% | 57.00% |
13 Impairment testing (Detail_3
13 Impairment testing (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment charge on non financial assets | |||
In-Process Research and Development ("IPRD") [Member] | Midatech Pharma (Wales) Limited [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment charge on non financial assets | £ 1,500 | ||
Description of goodwill and IPRD allocated to the acquired cash generating unit | CGU were valued as at 31 December 2019, 2018 and 2017 and were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using 12-13 year (2018: 12–13 year; 2018: 13-14 year), risk adjusted cash flow forecasts, in line with patent life, that have been approved by the Board. A period longer than 5 years is appropriate on the basis that the investment is long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used. | CGU were valued as at 31 December 2019, 2018 and 2017 and were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using 12-13 year (2018: 12–13 year; 2018: 13-14 year), risk adjusted cash flow forecasts, in line with patent life, that have been approved by the Board. A period longer than 5 years is appropriate on the basis that the investment is long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used. | CGU were valued as at 31 December 2019, 2018 and 2017 and were found to support the IPRD and goodwill carrying amounts set out above. The IPRD was valued using 12-13 year (2018: 12–13 year; 2018: 13-14 year), risk adjusted cash flow forecasts, in line with patent life, that have been approved by the Board. A period longer than 5 years is appropriate on the basis that the investment is long term and the development and commercialisation process is typically in excess of 5 years. Beyond the period from product launch and initial market penetration, a long term growth rate of Nil was used. |
14 Subsidiaries (Details)
14 Subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | ||
SubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) | |
Registered Office | Parque Tecnol?gico de Vizcaya, Edificio 800 Planta 2, Derio, 48160, Vizcaya, Spain | [1] |
Nature of Business | Trading company | |
PharMida AG [Member] | ||
SubsidiariesLineItems [Line Items] | ||
Entity name | PharMida AG | |
Registered Office | c/o Kellerhals, Hirschg?sslein 11, 4051 Basel, Switzerland | [1],[2] |
Nature of Business | Dormant | |
Midatech Pharma (Wales) Limited [Member] | ||
SubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Pharma (Wales) Limited (formerly Q Chip Limited) | |
Registered Office | Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA | |
Nature of Business | Trading company | |
Midatech Pharma PTY [Member] | ||
SubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Pharma Pty | |
Registered Office | c/o Griffith Hack Consulting, 300 Queen Street, Brisbane, QLD 4000, Australia | [3] |
Nature of Business | Trading company | |
Midatech Limited [Member] | ||
SubsidiariesLineItems [Line Items] | ||
Entity name | Midatech Limited | |
Registered Office | Oddfellows House, 19 Newport Road, Cardiff, CF24 0AA | |
Nature of Business | Trading company | |
[1] | Wholly owned subsidiary of Midatech Limited. | |
[2] | PharMida AG became dormant in January 2016. | |
[3] | Midatech Pharma PTY was incorporated on 16 February 2015. |
15 Trade and other receivable_2
15 Trade and other receivables (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other receivables [abstract] | ||||
Trade receivables | £ 22 | £ 89 | £ 2,232 | |
Prepayments | 151 | 139 | 627 | |
Other receivables | 3,444 | 1,564 | 848 | |
Total trade and other receivables | 3,617 | 1,792 | 3,707 | |
Less: non-current portion (rental deposit and on bond) | (2,625) | (469) | (465) | |
Current portion | £ 992 | £ 1,716 | £ 1,323 | £ 3,242 |
16 Cash and cash equivalents _3
16 Cash and cash equivalents and cash flow supporting notes (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents And Cash Flow Supporting Notes | ||||
Cash at bank available on demand | £ 10,928 | £ 2,343 | £ 13,204 | £ 17,608 |
16 Cash and cash equivalents _4
16 Cash and cash equivalents and cash flow supporting notes (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash And Cash Equivalents And Cash Flow Supporting Notes | |||
Gross proceeds | £ 15,767 | £ 6,157 | |
Transaction costs | (1,659) | (429) | |
Equity transaction | £ 14,108 | £ 5,728 |
16 Cash and cash equivalents _5
16 Cash and cash equivalents and cash flow supporting notes (Details 2) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | ||
Beginning | £ 1,252 | £ 6,546 |
Cash Flows | 4,548 | (5,885) |
Foreign Exchange | (71) | 300 |
Fair value changes | (1,139) | |
Adoption of IFRS16 leases | 546 | |
Effect of modification to lease term - IFRS 16 | (82) | |
New leases | 900 | 244 |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | ||
Transfer to grant income | (14) | |
Interest accruing in period | 142 | 47 |
Ending | 6,082 | 1,252 |
Non-Current Liabilities, Borrowings [Member] | ||
CashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | ||
Beginning | 884 | 6,185 |
Cash Flows | 5,575 | (5,580) |
Foreign Exchange | (42) | 296 |
Fair value changes | (1,139) | |
Adoption of IFRS16 leases | 163 | |
Effect of modification to lease term - IFRS 16 | ||
New leases | 805 | 168 |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | (685) | (232) |
Transfer to grant income | ||
Interest accruing in period | 108 | 47 |
Ending | 5,670 | 884 |
Current Liabilities, Borrowings [Member] | ||
CashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | ||
Beginning | 368 | 361 |
Cash Flows | (1,027) | (305) |
Foreign Exchange | (29) | 4 |
Fair value changes | ||
Adoption of IFRS16 leases | 383 | |
Effect of modification to lease term - IFRS 16 | (82) | |
New leases | 95 | 76 |
Loans and borrowings classified as non-current 31 December 2018 becoming current in 2019 | 685 | 232 |
Transfer to grant income | (14) | |
Interest accruing in period | 34 | |
Ending | £ 412 | £ 368 |
16 Cash and cash equivalents _6
16 Cash and cash equivalents and cash flow supporting notes (Details Narrative) | 1 Months Ended |
Oct. 31, 2019shares | |
Warrant [Member] | |
CashAndCashEquivalentsAndCashFlowSupportingNotesLineItems [Line Items] | |
Number of warrants issued | 1,100 |
17 Inventories (Details)
17 Inventories (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Inventories Abstract | |||
Finished goods | £ 941 | ||
Total inventories | £ 941 |
17 Inventories (Details Narrati
17 Inventories (Details Narrative) £ in Thousands | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Disclosure Of Inventories Abstract | |
Inventory, net realisable value | £ 151 |
18 Trade and other payables (De
18 Trade and other payables (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current | |||
Trade payables | £ 725 | £ 286 | £ 2,271 |
Other payables | 13 | 1,141 | |
Accruals | 1,765 | 1,025 | 3,090 |
Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost | 2,503 | 1,311 | 6,502 |
Tax and social security | 86 | 347 | 359 |
Deferred revenue and government grants | 1,905 | 445 | 1,141 |
Total trade and other payables | £ 4,494 | £ 2,103 | £ 8,002 |
18 Trade and other payables (_2
18 Trade and other payables (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TradeAndOtherPayablesLineItems [Line Items] | |||
Revenue from government grants | £ 362 | £ 1,789 | £ 840 |
Government Project [Member] | |||
TradeAndOtherPayablesLineItems [Line Items] | |||
Project maturity date | Jan. 31, 2019 | ||
Revenue from government grants | £ 124 | 1,610 | 840 |
Deferred revenue from government grants | £ 124 | £ 1,110 |
19 Borrowings (Details)
19 Borrowings (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current | |||
Total | £ 412 | £ 368 | £ 361 |
Non-current | |||
Total | 5,670 | 884 | 6,185 |
Government and Research Loans [Member] | |||
Current | |||
Total | 179 | 284 | 311 |
Non-current | |||
Total | 4,758 | 714 | 949 |
Bank Loans [Member] | |||
Current | |||
Total | 4 | 11 | |
Non-current | |||
Total | 5,207 | ||
Lease Liabilities [Member] | |||
Current | |||
Total | 233 | 80 | 39 |
Non-current | |||
Total | £ 912 | £ 170 | £ 29 |
19 Borrowings (Details Narrativ
19 Borrowings (Details Narrative) - GBP (£) £ / shares in Units, £ in Thousands | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 28, 2017 |
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Maturity terms | Over periods through to 2024. | ||
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | Spanish Government Reindustrialization Programme [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Government grants | £ 6,600 | ||
Maturity terms | Over periods through to 2029. | ||
Midatech Pharma (Espana) SL (formerly Midatech Biogune SL) [Member] | Spanish Government Reindustrialization Programme [Member] | Cash-Backed Guarantee [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Government grants | £ 2,900 | ||
Midcap Financial Trust [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Number of warrants granted | 12,394 | ||
Exercise price of warrants granted | £ 8.40 | ||
Secured Loan Agreement [Member] | Midcap Financial Trust [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total drawn facility | £ 15,000 | ||
Description of interest rate | Annual rate of LIBOR plus 7.5% subject to a LIBOR floor of 1.25%. | ||
Drawn facility under bank laon | £ 7,000 |
20 Provisions (Details)
20 Provisions (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Provisions [abstract] | |||
Opening provision at 1 January | £ 165 | ||
Provision (released)/recognised in the year | (68) | 165 | |
At 31 December | 97 | 165 | |
Less: non-current portion (rental deposit and bond) | 165 | ||
Current portion | £ 97 |
21 Derivative financial liabi_3
21 Derivative financial liability - current (Details) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Financial Liability - Current | |||
Equity settled derivative financial liability | |||
At 1 January | 400 | ||
Warrants issued | 1,148 | ||
Gain recognised in finance income within the consolidated statement of comprehensive income | (484) | (400) | |
At 31 December | £ 664 |
21 Derivative financial liabi_4
21 Derivative financial liability - current (Details Narrative) - GBP (£) £ / shares in Units, £ in Thousands | Oct. 31, 2019 | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Warrant [Member] | |||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||
Number of shares lapsed | 111,582 | 38,844 | 24,465 | ||
Number of warrants issued | 1,100 | ||||
Share Options [Member] | |||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||
Number of shares lapsed | 3,332 | 8,846 | 8,302 | ||
Warrants [Member] | |||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||
Number of warrants issued | 3,150,000 | ||||
Number of shares outstanding | 3,150,000 | ||||
Midatech Pharma US Inc [Member] | |||||
DisclosureOfDerivativeFinancialLiabilityCurrentLineItems [Line Items] | |||||
Share price | £ 0.56 | £ 1.20 | £ 7.20 | ||
Remeasurement of finance income | £ 0 | £ 0 | £ 400 |
22 Financial instruments - ri_3
22 Financial instruments - risk management (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets - amortised cost | ||||
Cash and cash equivalents | £ 10,928 | £ 2,343 | £ 13,204 | £ 17,608 |
Trade receivables | 22 | 89 | 2,232 | |
Other receivables | 3,444 | 1,564 | 848 | |
Total financial assets | 13,575 | 2,901 | 15,901 | |
Financial liabilities - amortised cost | ||||
Trade payables | 725 | 286 | 2,271 | |
Other payables | 13 | 1,141 | ||
Accruals | 1,765 | 1,025 | 3,090 | |
Borrowings | 6,082 | 1,252 | 6,546 | |
Total financial liabilities - amortised cost | 8,585 | 2,563 | 13,048 | |
Financial liabilities - fair value through profit and loss - current | ||||
Equity settled derivative financial liability | £ 664 | £ 400 |
22 Financial instruments - ri_4
22 Financial instruments - risk management (Details 1) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Equity settled derivative financial liability | £ 664 | £ 400 | ||
Level 3 [Member] | Monte Carlo simulation model [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Valuation technique (s) and key input(s) | Monte Carlo simulation model | |||
Significant unobservable input(s) | Volatility rate of 78.4% determined using historical volatility of comparable companies. | |||
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | |||
Significant unobservable input(s) | Expected life between a range of 0.1 and 5.68 years determined using the remaining life of the share options. | |||
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | |||
Significant unobservable input(s) | Risk-free rate between a range of 0.59% and 1.69 % determined using the expected life assumptions. | |||
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | |||
Level 3 [Member] | Black-Scholes option pricing model [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Valuation technique (s) and key input(s) | Black-Scholes option pricing model | Black-Scholes option pricing model | Black-Scholes option pricing model | |
Significant unobservable input(s) | Volatility rate of 78.3% determined using historical volatility of comparable companies. | Volatility rate of 42.5% determined using historical volatility of comparable companies. | Volatility rate of 42.5% determined using historical volatility of comparable companies. | |
Relationship of unobservable inputs to fair value | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | The higher the volatility the higher the fair value. | |
Significant unobservable input(s) | Expected life between a range of 2.0 and 2.9 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 7.6 years determined using the remaining life of the share options. | Expected life between a range of 0.1 and 8.6 years determined using the remaining life of the share options. | |
Relationship of unobservable inputs to fair value | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | The shorter the expected life the lower the fair value. | |
Significant unobservable input(s) | Risk-free rate between a range of 0.0% and 0.26 % determined using the expected life assumptions. | Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. | Risk-free rate between a range of 0.0% and 1.14% determined using the expected life assumptions. | |
Relationship of unobservable inputs to fair value | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. | The higher the risk-free rate the higher the fair value. |
22 Financial instruments - ri_5
22 Financial instruments - risk management (Details 2) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents: | ||||
Total | £ 10,928 | £ 2,343 | £ 13,204 | £ 17,608 |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | 3,488 | 1,981 | 4,192 | |
Foreign exchange risk [Member] | Pounds Sterling | ||||
Cash and cash equivalents: | ||||
Total | 3,153 | 457 | 6,116 | |
Foreign exchange risk [Member] | US Dollar | ||||
Cash and cash equivalents: | ||||
Total | 2,021 | 1,421 | 5,362 | |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | 2,021 | 1,421 | 4,459 | |
Foreign exchange risk [Member] | Euro | ||||
Cash and cash equivalents: | ||||
Total | 5,750 | 459 | 1,632 | |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | 1,460 | 552 | (362) | |
Foreign exchange risk [Member] | Other | ||||
Cash and cash equivalents: | ||||
Total | 4 | 6 | 94 | |
Net Foreign Currency Assets/(Liabilities): | ||||
Total | £ 7 | £ 8 | £ 95 |
22 Financial instruments - ri_6
22 Financial instruments - risk management (Details 3) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | £ (10,923) | £ (12,400) | £ (12,970) | |
Total equity | 19,558 | 16,924 | 34,676 | £ 45,724 |
Foreign currency sensitivity analysis [Member] | US Dollar | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | 202 | 307 | ||
Total equity | 202 | 142 | 307 | |
Foreign currency sensitivity analysis [Member] | Euro | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | 54 | 168 | (89) | |
Total equity | 31 | 168 | (89) | |
Foreign currency sensitivity analysis [Member] | Other | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loss before tax | ||||
Total equity | £ 1 |
22 Financial instruments - ri_7
22 Financial instruments - risk management (Details 4) - Liquidity Risk [Member] - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Up to 3 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | £ 2,582 | £ 1,380 | £ 6,681 |
Between 3 and 12 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 437 | 307 | 649 |
Between 1 and 2 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 555 | 485 | 2,698 |
Between 2 and 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3,586 | 531 | 4,471 |
Over 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3,317 | 47 | |
Trade and other payables [Member] | Up to 3 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 2,503 | 1,311 | 6,502 |
Trade and other payables [Member] | Between 3 and 12 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Trade and other payables [Member] | Between 1 and 2 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Trade and other payables [Member] | Between 2 and 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Trade and other payables [Member] | Over 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Bank Loans [Member] | Up to 3 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3 | 120 | |
Bank Loans [Member] | Between 3 and 12 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 2 | 359 | |
Bank Loans [Member] | Between 1 and 2 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 2,201 | ||
Bank Loans [Member] | Between 2 and 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3,926 | ||
Bank Loans [Member] | Over 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Lease Liabilities [Member] | Up to 3 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 22 | 16 | |
Lease Liabilities [Member] | Between 3 and 12 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 65 | 25 | |
Lease Liabilities [Member] | Between 1 and 2 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 79 | 30 | |
Lease Liabilities [Member] | Between 2 and 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 117 | ||
Lease Liabilities [Member] | Over 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | |||
Government and Research Loans [Member] | Up to 3 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 44 | 43 | |
Government and Research Loans [Member] | Between 3 and 12 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 272 | 240 | 268 |
Government and Research Loans [Member] | Between 1 and 2 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 238 | 406 | 467 |
Government and Research Loans [Member] | Between 2 and 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 2,851 | 414 | 545 |
Government and Research Loans [Member] | Over 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 3,317 | £ 47 | |
Lease [Member] | Up to 3 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 79 | ||
Lease [Member] | Between 3 and 12 months [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 165 | ||
Lease [Member] | Between 1 and 2 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 317 | ||
Lease [Member] | Between 2 and 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total | 735 | ||
Lease [Member] | Over 5 years [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total |
22 Financial instruments - ri_8
22 Financial instruments - risk management (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2019 | Feb. 28, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | ||||
Impact on carrying amount | ||||
Amount raised | £ 2,400 | £ 13,400 |
23. Deferred tax (Details)
23. Deferred tax (Details) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in deferred tax liability [abstract] | |||
Liability at 1 January | |||
Arising on business combination | |||
Credited to income statement | |||
Foreign exchange gain | |||
Liability at 31 December |
23. Deferred tax (Details 1)
23. Deferred tax (Details 1) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax | |||
Gross losses | £ 49,565 | £ 40,741 | £ 38,377 |
Potential deferred tax asset | £ 8,426 | £ 6,926 | £ 6,639 |
23. Deferred tax (Details 2)
23. Deferred tax (Details 2) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax | |||
Asset | £ 1,581 | £ 1,690 | £ 2,599 |
Liability | (1,581) | (1,690) | (2,599) |
Net |
23. Deferred tax (Details Narra
23. Deferred tax (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax | |||
Deferred tax account | |||
Deferred tax asset | 1,600 | 1,700 | 2,600 |
Uncertain deferred tax asset | £ 9,000 | £ 7,300 | £ 9,500 |
24 Share capital (Details)
24 Share capital (Details) - GBP (£) £ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | |||
Amount of allotted and fully paid - classified as equity | £ 1,023 | £ 1,003 | £ 1,003 |
Ordinary Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Number of authorised shares | 23,494,981 | 3,059,207 | 3,054,207 |
Amount of allotted and fully paid - classified as equity | £ 23,495 | £ 3,059 | £ 3,054 |
Deferred Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Number of authorised shares | 1,000,001 | 1,000,001 | 1,000,001 |
Amount of allotted and fully paid - classified as equity | £ 1,000,001 | £ 1,000,001 | £ 1,000,001 |
24 Share capital (Details 1)
24 Share capital (Details 1) - GBP (£) £ / shares in Units, £ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | |||
Balance at beginning | £ 3,059,207 | £ 69,870 | £ 63,713 |
Share issue to SIPP trustee (see note 27) 19 May 2017 (in pound per share) | £ 0.001 | ||
Share issue to SIPP trustee (see note 28) 19 May 2017 | |||
Placing and Open Offer (see note 16) 26 February 2019 (in pound per share) | £ 0.77 | ||
Placing and Open Offer (see note 16) 26 February 2019 | £ 13,406 | ||
Share issue to SIPP trustee (see note 27) 8 October 2019 (in pound per share) | £ 0.001 | ||
Registered Direct Offering 29 October 2019 (in pound per share) | £ 0.7874 | ||
Registered Direct Offering 29 October 2019 | £ 2,362 | ||
Placing and Open Offer (shown in note 15) 16 October 2017 (in pound per share) | £ 10 | ||
Placing and Open Offer (shown in note 15) 16 October 2017 | £ 6,157 | ||
Share issue to SIPP trustee (see note 27) 1 August 2018 (in pound per share) | £ 0.001 | ||
Share issue to SIPP trustee (see note 27) 1 August 2018 | |||
Share issue to SIPP trustee (see note 27) 7 November 2017 (in pound per share) | £ 0.001 | ||
Share issue to SIPP trustee (see note 28) 7 November 2017 | |||
Balance at end | £ 85,638 | £ 3,059,207 | £ 69,870 |
Ordinary Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning (in shares) | 3,054,207 | 3,054,207 | 2,434,973 |
Share issue to SIPP trustee (see note 27) 19 May 2017 (in shares) | 1,000 | ||
Placing and Open Offer (shown in note 15) 16 October 2017 (in shares) | 615,734 | ||
Share issue to SIPP trustee (see note 27) 1 August 2018 (in shares) | 5,000 | ||
Share issue to SIPP trustee (see note 27) 7 November 2017 (in shares) | 2,500 | ||
Balance at end (in shares) | 1,000,001 | 3,054,207 | 3,054,207 |
Deferred Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Balance at beginning (in shares) | 1,000,001 | 1,000,001 | 1,000,001 |
Share issue to SIPP trustee (see note 27) 19 May 2017 (in shares) | |||
Placing and Open Offer (see note 16) 26 February 2019 (in shares) | 17,410,774 | ||
Share issue to SIPP trustee (see note 27) 8 October 2019 (in shares) | 25,000 | ||
Registered Direct Offering 29 October 2019 (in shares) | 3,000,000 | ||
Placing and Open Offer (shown in note 15) 16 October 2017 (in shares) | |||
Share issue to SIPP trustee (see note 27) 1 August 2018 (in shares) | |||
Share issue to SIPP trustee (see note 27) 7 November 2017 (in shares) | |||
Balance at end (in shares) | 23,494,981 | 1,000,001 | 1,000,001 |
25 Reserves (Details)
25 Reserves (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Share Premium [Member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Amount subscribed for share capital in excess of nominal value. |
Merger Reserve [Member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. |
Foreign exchange reserve [Member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | Gains/losses arising on retranslating the net assets of overseas operations into sterling. |
Accumulated Deficit [Member] | |
ReservesLineItems [Line Items] | |
Description of nature and purpose of reserves within equity | All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |
27 Share-based Payments (Detail
27 Share-based Payments (Details) | 1 Months Ended | 12 Months Ended | |||
Oct. 30, 2019Number | Apr. 30, 2019Number | Dec. 31, 2019£ / sharesNumber | Dec. 31, 2018£ / sharesNumber | Dec. 31, 2017£ / sharesNumber | |
SharebasedPaymentsLineItems [Line Items] | |||||
Beginning of the year | 158,966 | 226,488 | 164,465 | ||
Granted | 50,000 | 219,000 | 269,000 | 5,497 | 67,560 |
Exercised | |||||
Forfeited | (91,940) | (73,019) | (5,537) | ||
End of the year | 336,026 | 158,966 | 226,488 | ||
1 April 2010 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 1, 2010 | Apr. 1, 2010 | |||
Beginning of the year | 1,255 | 1,255 | 1,255 | ||
End of the year | 1,255 | 1,255 | |||
Exercise Price | £ / shares | 80 | 80 | |||
20 August 2010 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Aug. 20, 2010 | Aug. 20, 2010 | Aug. 20, 2010 | ||
Beginning of the year | 2,088 | 2,088 | 2,088 | ||
End of the year | 2,088 | 2,088 | 2,088 | ||
Exercise Price | £ / shares | 83.80 | 83.80 | 83.80 | ||
13 September 2011 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Sep. 13, 2011 | Sep. 13, 2011 | Sep. 13, 2011 | ||
Beginning of the year | 150 | 150 | 150 | ||
End of the year | 150 | 150 | 150 | ||
Exercise Price | £ / shares | 83.80 | 83.80 | 83.80 | ||
20 April 2012 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 20, 2012 | Apr. 20, 2012 | Apr. 20, 2012 | ||
Beginning of the year | 1,589 | 1,789 | 1,789 | ||
Forfeited | (200) | ||||
End of the year | 1,589 | 1,589 | 1,789 | ||
Exercise Price | £ / shares | 83.80 | 83.80 | 83.80 | ||
9 May 2014 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | May 9, 2014 | May 9, 2014 | May 9, 2014 | ||
Beginning of the year | 10,000 | 10,000 | 10,000 | ||
End of the year | 10,000 | 10,000 | 10,000 | ||
Exercise Price | £ / shares | 1.50 | 1.50 | 1.50 | ||
30 June 2014 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||
Beginning of the year | 21,500 | 44,000 | 44,000 | ||
Forfeited | (3,000) | (22,500) | |||
End of the year | 18,500 | 21,500 | 44,000 | ||
Exercise Price | £ / shares | 1.50 | 1.50 | 1.50 | ||
11 July 2014 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Jul. 11, 2014 | Jul. 11, 2014 | Jul. 11, 2014 | ||
Beginning of the year | 100 | 100 | 150 | ||
Forfeited | 50 | ||||
End of the year | 100 | 100 | 100 | ||
Exercise Price | £ / shares | 1.50 | 1.50 | 1.50 | ||
31 October 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Oct. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2016 | ||
Beginning of the year | 23,411 | 2,500 | 2,500 | ||
Forfeited | (7,140) | (6,969) | |||
End of the year | 16,271 | 23,411 | 2,500 | ||
Exercise Price | £ / shares | 53.60 | 53.60 | 34.20 | ||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | Dec. 14, 2016 | Dec. 14, 2016 | ||
Beginning of the year | 400 | 400 | 400 | ||
End of the year | 400 | 400 | 400 | ||
Exercise Price | £ / shares | 31 | 31 | 31 | ||
1 April 2010 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 1, 2010 | Dec. 15, 2016 | Dec. 15, 2016 | ||
Beginning of the year | 1,255 | 5,100 | 9,850 | ||
Forfeited | (500) | 4,750 | |||
End of the year | 1,255 | 1,255 | 5,100 | ||
Exercise Price | £ / shares | 80 | 24.20 | 24.20 | ||
19 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 19, 2016 | Dec. 19, 2016 | Dec. 19, 2016 | ||
Beginning of the year | 35,866 | 55,210 | 55,497 | ||
Forfeited | (13,475) | (19,344) | 287 | ||
End of the year | 22,391 | 35,866 | 55,210 | ||
Exercise Price | £ / shares | 24.20 | 24.20 | 24.20 | ||
15 December 2017 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 15, 2016 | Dec. 15, 2017 | Dec. 15, 2017 | ||
Beginning of the year | 45,885 | 67,560 | |||
Granted | 67,560 | ||||
Forfeited | (16,235) | (21,675) | |||
End of the year | 29,560 | 45,885 | 67,560 | ||
Exercise Price | £ / shares | 9.20 | 9.20 | 9.20 | ||
2 April 2018 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 2, 2018 | ||||
Beginning of the year | 997 | ||||
Granted | 997 | ||||
End of the year | 997 | ||||
Exercise Price | £ / shares | 16.60 | ||||
31 December 2008 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 31, 2008 | Dec. 31, 2008 | |||
Beginning of the year | 1,306 | 1,306 | |||
Forfeited | (1,306) | ||||
End of the year | 1,306 | ||||
Exercise Price | £ / shares | 28.50 | 28.50 | |||
31 October 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Oct. 31, 2016 | ||||
Beginning of the year | 23,411 | ||||
Forfeited | (7,140) | ||||
End of the year | 16,271 | 23,411 | |||
Exercise Price | £ / shares | 53.60 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 500 | ||||
End of the year | 500 | 500 | |||
Exercise Price | £ / shares | 34 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 2,000 | ||||
End of the year | 2,000 | 2,000 | |||
Exercise Price | £ / shares | 37.40 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 1,625 | ||||
End of the year | 1,625 | 1,625 | |||
Exercise Price | £ / shares | 37.60 | ||||
15 December 2017 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 15, 2017 | ||||
Beginning of the year | 45,885 | ||||
Forfeited | (16,325) | ||||
End of the year | 29,560 | 45,885 | |||
Exercise Price | £ / shares | 9.20 | ||||
2 April 2018 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 2, 2018 | ||||
Beginning of the year | 997 | ||||
End of the year | 997 | 997 | |||
Exercise Price | £ / shares | 16.60 | ||||
2 April 2018 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 2, 2018 | ||||
Beginning of the year | 4,500 | ||||
End of the year | 4,500 | 4,500 | |||
Exercise Price | £ / shares | 24.20 | ||||
24 April 2019 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 24, 2019 | ||||
Granted | 219,000 | ||||
Forfeited | (49,500) | ||||
End of the year | 169,500 | ||||
Exercise Price | £ / shares | 1.46 | ||||
2 October 2019 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Oct. 2, 2019 | ||||
Granted | 50,000 | ||||
End of the year | 50,000 | ||||
Exercise Price | £ / shares | 1.05 | ||||
31 December 2008 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 31, 2008 | ||||
Beginning of the year | 150 | ||||
Forfeited | (150) | ||||
End of the year | 150 | ||||
Exercise Price | £ / shares | 79.70 | ||||
31 October 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Oct. 31, 2016 | ||||
Beginning of the year | 2,500 | 2,500 | |||
End of the year | 2,500 | 2,500 | |||
Exercise Price | £ / shares | 34.20 | ||||
2 April 2018 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Apr. 2, 2018 | ||||
Beginning of the year | 4,500 | ||||
Granted | 4,500 | ||||
End of the year | 4,500 | ||||
Exercise Price | £ / shares | 24.20 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 500 | 500 | |||
End of the year | 500 | 500 | |||
Exercise Price | £ / shares | 34 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 2,000 | 2,000 | |||
End of the year | 2,000 | 2,000 | |||
Exercise Price | £ / shares | 37.40 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 1,625 | 2,000 | |||
Forfeited | (375) | ||||
End of the year | 1,625 | 2,000 | |||
Exercise Price | £ / shares | 37.60 | ||||
31 December 2008 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 31, 2008 | ||||
Beginning of the year | 150 | 150 | |||
End of the year | 150 | ||||
Exercise Price | £ / shares | 79.70 | ||||
31 October 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Oct. 31, 2016 | ||||
Beginning of the year | 30,380 | 30,380 | |||
End of the year | 30,380 | ||||
Exercise Price | £ / shares | 53.60 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 500 | 500 | |||
End of the year | 500 | ||||
Exercise Price | £ / shares | 34 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 150 | ||||
Forfeited | 150 | ||||
Exercise Price | £ / shares | 34.20 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 150 | ||||
Forfeited | 150 | ||||
Exercise Price | £ / shares | 34.60 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 150 | ||||
Forfeited | 150 | ||||
Exercise Price | £ / shares | 34.80 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 2,000 | 2,000 | |||
End of the year | 2,000 | ||||
Exercise Price | £ / shares | 37.40 | ||||
14 December 2016 [Member] | |||||
SharebasedPaymentsLineItems [Line Items] | |||||
Grant date | Dec. 14, 2016 | ||||
Beginning of the year | 2,000 | 2,000 | |||
End of the year | 2,000 | ||||
Exercise Price | £ / shares | 37.60 |
27 Share-based Payments (Deta_2
27 Share-based Payments (Details 1) | 12 Months Ended | ||
Dec. 31, 2019Number£ / shares | Dec. 31, 2018Number£ / shares | Dec. 31, 2017Number£ / shares | |
Weighted average exercise price | |||
Options exercisable | Number | 131,094 | 112,393 | 50,023 |
Weighted average exercise price of outstanding options | £ 8.48 | £ 22.02 | £ 20.06 |
Weighted average exercise price of options exercised | |||
Weighted average exercise price of options forfeited | 13.26 | 15.98 | 24.84 |
Weighted average exercise price of options granted | £ 1.38 | £ 16.60 | £ 9.20 |
Weighted average remaining contractual life of outstanding options | 7 years 10 months 24 days | 5 years 8 months 12 days | 8 years 3 months 18 days |
27 Share-based Payments (Deta_3
27 Share-based Payments (Details 2) - Number | 1 Months Ended | 12 Months Ended | |||
Oct. 30, 2019 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||||
Number of options | 50,000 | 219,000 | 269,000 | 5,497 | 67,560 |
Option pricing models used | Black-Scholes | Black-Scholes | Monte-Carlo | Monte-Carlo | |
Share price | 1.126 | 2.30 | 5.4 | 8.20 | |
Exercise price of options issued in year | 1.05 | 1.46 | 9.20 | ||
Contractual life | 10 years | 10 years | 10 years | 10 years | |
Expected life | 5 years | 5 years | 5 years | 5 years | |
Volatility | 78.30% | 75.30% | 45.20% | 42.50% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |
Risk free rate | 0.26% | 0.58% | 1.03% | 0.73% | |
Bottom Of Range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Exercise price of options issued in year | 16.60 | ||||
Top Of Range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Exercise price of options issued in year | 24.40 |
29. Related party transactions
29. Related party transactions (Details Narrative) - GBP (£) £ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | |
Preci-Health SA [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Research services revenue related party | £ 44 | |
Bio Connection [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due to related party | £ 8,400 | |
Invoice amount | £ 17,800 |
30 Contingent liabilities (Deta
30 Contingent liabilities (Details Narrative) £ in Thousands | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Contingent Liabilities | |
Contingent liabilites | £ 258 |
31 Ultimate controlling party (
31 Ultimate controlling party (Details Narrative) - GBP (£) £ in Thousands | 1 Months Ended | 12 Months Ended |
Feb. 28, 2019 | Dec. 31, 2019 | |
Statement Line Items [Line Items] | ||
Number of shares issued, value | £ 3,700 | |
China Medical Systems Holdings Limited and A&B (HK) Company Ltd [Member] | ||
Statement Line Items [Line Items] | ||
Number of shares issued, value | £ 8,000 | |
Number of shares issued | 10,389,610 |
32 Effects of changes in acco_2
32 Effects of changes in accounting policies (Details) - GBP (£) £ in Thousands | Jan. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Line Items [Line Items] | ||||
Right-of-use asset | £ 395 | |||
Other receivables | 1,716 | £ 992 | 1,323 | £ 3,242 |
Lease liabilities | (796) | £ (250) | ||
Adjustments [Member] | ||||
Statement Line Items [Line Items] | ||||
Right-of-use asset | 395 | |||
Lease receivable on sub-let property | 152 | |||
Minimum operating lease commitment | 577 | |||
Less: low value leases not recognised under IFRS16 | (5) | |||
Less: effect of discounting using incremental borrowing rate as at the date of initial application | (25) | |||
Lease liabilities recognised at 1 January 2019 | 547 | |||
IFRS 16 [Member] | ||||
Statement Line Items [Line Items] | ||||
Right-of-use asset | 395 | |||
Other receivables | 152 | |||
Lease liabilities | £ (547) |
33 Post balance sheet events (D
33 Post balance sheet events (Details) - shares | Mar. 02, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
PostBalanceSheetEventLineItems [Line Items] | ||||
Weighted average number of shares outstanding - basic and diluted | 18,330,588 | 3,056,303 | 2,565,866 | |
Events After Reporting Period [member] | Pre-Split [Member] | Employee Share Option Plans [Member] | ||||
PostBalanceSheetEventLineItems [Line Items] | ||||
Weighted average number of shares outstanding - basic and diluted | 366,611,759 | |||
Ordinary shares outstanding | 469,899,613 | |||
Outstanding employee share options | 6,720,722 | |||
Events After Reporting Period [member] | Pre-Split [Member] | Employee Share Option Plans [Member] | DARA BioSciences, Inc. [Member] | ||||
PostBalanceSheetEventLineItems [Line Items] | ||||
Outstanding DARA options | 57,150 | |||
Outstanding DARA warrants | 92,480 | |||
Events After Reporting Period [member] | Post-Split [member] | Employee Share Option Plans [Member] | ||||
PostBalanceSheetEventLineItems [Line Items] | ||||
Weighted average number of shares outstanding - basic and diluted | 18,330,588 | |||
Ordinary shares outstanding | 23,494,981 | |||
Outstanding employee share options | 336,036 | |||
Events After Reporting Period [member] | Post-Split [member] | Employee Share Option Plans [Member] | DARA BioSciences, Inc. [Member] | ||||
PostBalanceSheetEventLineItems [Line Items] | ||||
Outstanding DARA options | 2,857 | |||
Outstanding DARA warrants | 4,624 |
33 Post balance sheet events _2
33 Post balance sheet events (Details 1) £ in Thousands | 12 Months Ended |
Dec. 31, 2019GBP (£) | |
Estimated cash outflow | |
Staff redundancy | £ 933 |
Repayment of loans, net of deposit returned | 3,569 |
Property lease termination costs | |
Settlement of lease liabilities | 131 |
Repayment of grant funding | 230 |
Other | 70 |
Total | 4,933 |
Estimated non-cash costs | |
Impairment of acquired IPRD | 9,300 |
Impairment of goodwill | 2,291 |
Write down of tangible assets to net realisable value | 975 |
Right of use asset adjustment | (61) |
Other | (186) |
Total | £ 12,319 |
33 Post balance sheet events _3
33 Post balance sheet events (Details Narrative) - Events After Reporting Period [member] - GBP (£) £ / shares in Units, £ in Thousands | May 18, 2020 | Mar. 02, 2020 | Apr. 30, 2020 | Mar. 31, 2020 |
PostBalanceSheetEventLineItems [Line Items] | ||||
Description of stock split | ordinary shares on a one for 20 basis into new ordinary shares of 0.1p each in the capital of the Company. | |||
Description of terminate employees | manufacturing facilities in Bilbao and offer redundancy to all 42 employees. In addition, a further five UK-based employees in clinical research and administrative roles are being offered redundancy. Midatech’s remaining 20 employees and operations are concentrated in Cardiff. | |||
Impairment of acquired intangible and goodwill rate | 100.00% | |||
American Depositary Shares [member] | ||||
PostBalanceSheetEventLineItems [Line Items] | ||||
Number of units issued | 1,818,182 | |||
Description of placing shares | The Placing Shares and the 9,090,910 Ordinary Shares representing the ADS's represent approximately 40 per cent. | |||
UNITED KINGDOM | ||||
PostBalanceSheetEventLineItems [Line Items] | ||||
Gross proceeds | £ 1,800 | |||
Number of units issued | 6,666,666 | |||
Issue price (pounds per share) | £ 0.27 | |||
Description of voting rights | Each Unit comprising one new ordinary share of 0.1p each ("Placing Share") and one warrant ("UK Warrant") | |||
Description of conversion ratio | The pricing of the UK Placing was aligned to the pricing of the US Registered Direct Offering after adjusting for the one-for-five ratio of ordinary shares to ADS and the GBP: USD exchange rate. |