Sinclair
- Consolidated Income Statement
- Balance Sheet
- Statement of Changes in Shareholders' Equity
- Cash Flow Statements
- Notes to the Financial Statements
- 1. General information
- 2. Accounting Policies
- 3. Financial risk management
- 4. Segmental information
- 5. Exceptional operating items
- 6. Expenses by nature
- 7. Employees and Directors
- 8. Finance Income and costs
- 9. Taxation on loss on ordinary activities
- 10. Loss for the financial year
- 11. Loss per share
- 12. Goodwill
- 13. Intangible asssets
- 14. Property, plant and equipment
- 15. Investments
- 16. Deferred tax asset
- 17. Inventories
- 18. Trade and other receivables
- 19. Trade and other payables
- 20. Borrowings
- 21. Provisions
- 22. Financial instruments
- 23. Called-up share capital
- 24. Share premium
- 25. Options and warrants over shares of Sinclair Pharma plc
- 26. Share based payments
- 27. Other Reserves
- 28. Cash flows from operating activities
- 29. Operating lease commitments
- 30. Capital commitments
- 31. Related party transactions
- 32. Post balance sheet events
5 Exceptional operating itemsExceptional items represent significant items of income and expense which due to their nature, size, or the expected infrequency of the events giving rise to them, are presented separately on the face of the income statement to give a better understanding to shareholders of the elements of financial performance in the year, so as to facilitate comparison with prior periods and to better asses trends in financial performance. |
|
£’000 |
£’000 |
|
|
Foreign exchange gains |
1,671 |
3,699 |
|
Restructuring costs |
(1,442) |
– |
|
Aborted acquisition costs |
(555) |
(334) |
|
Goodwill impairment |
– |
(368) |
|
Impairment provision on product rights |
(898) |
– |
|
Provision for doubtful debts |
(1,204) |
– |
|
(2,428) |
2,997 |
|
|
Foreign exchange gains of £1,671,000 represent the gain on the translation of an intra-group loan balance (2008: gain of £3,699,000). This is a non-cash item.
Restructuring costs of £1,442,000 include severance costs and costs relating to the restructuring of the sales forces in Italy, France, and the closure of the UK sales operation and Northampton site during the year.
Exceptional acquisition related costs were incurred in relation to a strategic acquisition opportunity during the summer of 2008. These discussions were put on hold as a result of the market volatility in the autumn of 2008. Costs of £555,000 were incurred to that point.
An impairment provision of £898,000 has been made against the value of the product rights for Spiromix, as a result of manufacturing delays which have resulted in the product not being available for sale in Italy during the year.
An impairment charge of £368,000 was recorded in 2008 against the goodwill arising on the acquisition of Sinclair Pharma UK Limited (formerly Ashbourne Pharmaceuticals Limited) following the decision to restructure this operation and exit the dispensing doctors market in the UK. The restructuring plan was announced in July 2008.
A provision of £1,204,000 has been made during the year for a doubtful debt due from a distributor. Movements on other doubtful debt provisions are included within administrative expenses. |
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