RNS Number : 8637B ClearStream Technologies Group PLC 03 November 2009

This announcement replaces the '2009 Final Results' announcement released on 02 November 2009 at 12:23 under RNS No 7734B.

The telephone number for Marc Young has been amended.

The full amended text is shown below.

For Immediate release 2 November 2009

ClearStream Technologies Group plc

Final Results for the year ended 31 July 2009

Continued Strong Sales Growth and Maiden Profits

ClearStream Technologies Group plc (*ClearStream*) announces its preliminary audited results for the year ended 31 July 2009. Quoted on AIM (stock code: CTN), ClearStream is based in Enniscorthy, Ireland and is a specialist supplier of medical devices used in the rapidly growing interventional medical market.

Overall Highlights

Profitable throughout the year with trading results in line with market expectations Profit before tax of EUR1.9m (2008: (EUR1.2m loss) ) Revenues of EUR13.9m (2008: EUR9.2m) Healthy cash inflow during period : Net cash of EUR2.9m at year-end (2008 EUR0.09m) ClearStream branded sales maintained their market share through a difficult market period Strong recovery in co-labelling sales with significant growth in USA market share Progressive and significant improvement in manufacturing yield and productivity across the period EUR3.7m raised through Share Placing to secure Intrepide manufacturing rights and for investment in Sales and Marketing Major contract gain with CR Bard and extension of co-labelling agreement with Cordis International distributor network further strengthened and expanded Positive Outlook for FY 2010

Revenues EUR13.9 EUR9.2m
Profit/(Loss) before tax EUR1.9m EUR(1.2)m

(after R&D expenditure of EUR1.1m)
Profit/(Loss) per share (EUR) EUR0.06 EUR(0.04)
Cash and cash equivalents EUR2.9m EUR0.09M

Enquiries:

Andy Jones, Group CEO

Clearstream Technologies Group plc Tel: +353 (0)53 923 7111

Marc Young

FinnCap Tel: +44 (0)207 600 1658

Paul Vann

Winningtons Financial Tel: +44 (0)117 920 0092
Mobile: +44 (0)7768 807631

Overview

The financial year ending July 31 2009 has been a very significant year for ClearStream.

On the trading front, the move into net profit after all overheads, R&D and finance costs established in the second half of the previous financial year was sustained throughout the financial year. ClearStream has traded profitably (at pre tax level) for a continuous 16 month period to 31 July 2009. It recorded an underlying net trading profit of EUR0.5m on sales of EUR13.9m for the year ended July 31 2009. This was in line with the Board's expectations. Net profits were EUR1.9m after recognising a one off gain of EUR1.4m derived from a significant new contract with CR Bard.

During this period the Company has strengthened its balance sheet considerably and held net cash reserves at the end of the year of EUR2.9m. It successfully renegotiated and extended its banking facilities and towards the end of the period raised a further EUR3.7m net by way of a Placing of new shares (the "Placing"). Of this circa EUR3.0m will be utilised in the acquisition of the world-wide rights to Intrepide and the subsequent transfer of the Intrepide manufacturing facilities to Ireland.

There has been further significant growth in the sales of peripheral interventional devices, which now account for 53% of total revenues compared to circa 30% in the year ended 31 July 2008. This reflects ClearStream's growing brand position in this field and the strength of extended distribution and new supply partnerships that have enabled the continued penetration of world-wide markets.

During the year, the Company won significant new contracts with CR Bard, extended its distribution contract with Cordis (a J&J subsidiary) by two years and entered into a contract with a leading Japanese medical devices company, Terumo, to develop a new catheter platform for peripheral use.

The company's position in the markets it serves has been further strengthened by the appointment of additional new distributors for the sale of ClearStream own brand devices. The most significant appointments were in Germany with ab medica Deutschland and in Switzerland with Admedics (Advanced Medical Systems), the leading peripheral device distribution company in that country.

Substantial progress has also been made during the year in obtaining CE Mark approval for 5 new devices and with the registration of 62 devices into new territories, extending sales potential. Significant announcements made during the period included:

§ notification from Health Canada of approval for the sale of its advanced percutaneous transluminal angioplasty (PTA) balloon catheters in Canada;
§ the announcement of the CE Marking of its Bantam Alpha PTA catheters for the treatment of diabetic foot conditions;
§ confirmation from the Company*s notified body, Kema, of approval to extend the CE Mark for Intrepide DES to include *Suitability and Efficacy in the treatment of Diabetic Patients*;
§ FDA approval for the ReeKross family of catheters to be used in the treatment of extreme cases of critical limb ischemia, where the lesions in the vessel have become very heavily calcified;

§ the award of a CE Mark for ClearStream*s new Nimbus Pico * PTCA 0.014* rapid exchange catheter platform for pre-dilatation of the coronary arteries prior to implantation of a coronary stent;
§ notification from the Korean Food and Drug Administration of approval for a range of its angioplasty (PTA) balloon catheters to be sold in Korea
§ a CE Mark approval for the shelf-life of Intrepide DES to be extended from 12 months to 36 months;
§ the CE Marking of ClearStream*s state-of-the-art FlexeCTO PTCA catheter for treating chronic total occlusions (CTOs) in the coronary vasculature;
§ approval by the SFDA (State Food and Drug Administration, China) for sale of the ReeKross, ReeKross 14, ReeKross 18, Bantam and LitePAC PTA Balloon Dilatation Catheters by Shanghai Micro Medical;
§ the CE Marking of the *Bantam Florian* for the treatment of AV fistulas; and
§ Regulatory approval (post period end) to sell the SatinFlex CoCr Stent in Brazil

The Company successfully focused on rationalising the structure of its manufacturing operations to both cope with the rapid expansion of the number of new product introductions and to contribute to improved margins, which were 34% on operating results for the year.

Financial Results

ClearStream recorded a gross profit for the year of EUR5.7m (2008: EUR2.30m) while net profit for the year was EUR1.90m (2007: (EUR1.19m)). This figure is stated after charging R&D costs of EUR1.10m (2008: EUR1.10m), which were fully expensed across the period. These results build on the results of the previous financial year, when in the second half we recorded our first trading profit (before research and development expenditure) for five years.

A more detailed analysis of our performance across the year is encouraging. The improvements in productivity, reductions in our cost base and improved product sales mix mean that the Group is able to deliver net profits after planned R&D expenditure with monthly revenues of circa EUR1.1m yet has the capacity in place to increase monthly through-put to in excess of circa EUR2m.

ClearStream achieved overall revenue for the financial year of EUR13.9m substantially up on the previous financial year (2008: EUR9.2m) despite the wider challenging economic conditions prevailing for most of the year. Comparing sales volumes on a like for like basis ClearStream brand product revenues were marginally down at EUR5.28m (2008: EUR5.93m), OEM revenues increased to EUR3.16m (2008: EUR2.09m) and co-labelling grew strongly to EUR5.43m (2008: EUR1.21m).

The fall back in ClearStream brand sales in part reflects the tough global economic climate that prevailed during the year, with smaller and less-well financed distributors cutting back on inventories.

There are two other important trends to note. First, the proportion of peripheral revenues as compared to coronary revenues within the ClearStream branded label has risen to circa 53% (2008: 30%). This is significant since these revenues represent the new niche devices with higher margin potential which are targeted at markets in the peripheral vascular field, where there are fewer competitive pressures. Second, over 85% of revenues are now earned in Euro. This is important because our cost base is in Euro and with a higher proportion of Euro revenue we are less vulnerable to currency fluctuations. Sales outside the Euro zone will still be affected by currency fluctuation but to a lesser extent.

At the end of the year the Group had a net cash balance of EUR2.9m (2008: EUR0.09m). Term loan debt stood at EUR2.0m (EUR1.5m repayable over 10 years and a further EUR0.5m repayable over 5 years) (2008: EUR1.9m) secured against a fixed charge on the Group's property, which was valued in 2005 at EUR2.5m (the net book value of the property is EUR1.58m). At the year-end, the short-term loan, bank overdraft and invoice discount debt stood at EUR0.41m (2008: EUR0.59m).

The total expenditure on property, plant and equipment during the year was EUR0.5m (2008: EUR0.2m). This spend was to further upgrade our balloon technology and manufacturing capability in relation to long balloons.

There has been a progressive improvement in the cash flow run rate within the business across the year, reflecting the continuing trend of improved margins and the economies of scale which result from the higher level of sales revenue.

At the year end our total number of employees was 162 (2008: 132). We are currently building on our continuous improvement program and expect these to deliver additional efficiency gains and improved margins in FY 2010.

Despite its strengthening balance sheet and improving cash flows, working capital continues to take a strong focus within the business across debtors, creditors and inventory. This focus has kept debtor levels at EUR1.5m although the increase in demand and the need to meet committed service levels has led to an increase in inventory of EUR0.7m. Overall our improved cash position has led to a decrease of EUR0.8m in creditors, bringing us back within terms with all suppliers. The continued positive working relationship of our suppliers will also assist in the management of our forward working capital requirements.

The Placing

The Company raised approximately £3.7 million (net of expenses) through a placing of 17,115,470 Placing Shares at 20 pence per share. The Placing shares represented 37.1 per cent of the Company's Enlarged Issued Share Capital and rank pari passu with the existing issued ordinary shares. The Placing Shares were admitted to trading on AIM on 3 August 2009.

As part of the Placing, Mike Love, Chairman, subscribed for 1,250,000 Placing Shares, Andrew Jones, CEO, subscribed for 64,103, Placing Shares and Pauline Oakes, Director, subscribed for 21,368 Placing Shares.

Outlook

We are extremely pleased and encouraged by the progress made by the Group in financial year 2009, which is a tribute to the efforts and contributions made by a large number of individuals within the business. We are successfully executing and delivering on our strategic plan to transform ClearStream into the leading European manufacturer of interventional medical devices.

Although trading since 31st of January 2009 saw a slow-down in overall sales of ClearStream branded products, this is not anticipated to be a long term trend and has been offset by the continuing strong performance of our other channels to market. In the same period ClearStream saw the continued strength of co-labelling sales to Cordis Corporation and a steady pattern in OEM sales. Overall, trading has been in-line with the Board's expectations and gross margins have been steadily improving.

ClearStream branded sales were affected by a number of issues; credit issues resulting from late payment by public health authorities led to reduced sales for it's smaller and less-well financed distributors. Sales of the older Nimbus Pico and ClearFlex slowed. The release of the newly improved Nimbus Pico * is expected to start reversing this trend.

Looking forward, the Board intends to continue to implement its proven strategies and tactics to expand and develop ClearStream's core activities, by exploiting its product range and developing its internationally recognised brand with diversified channels to market. ClearStream plans to further broaden its product portfolio and to work with key strategic partners to license or develop new technologies.

The Directors of the Company believe that ClearStream now has a significant business opportunity as outlined above and is focused on penetrating its targeted markets with its range of products.

Consolidated Income Statement For the year ended 31 July

Pre-
Total exceptionals Exceptionals Total
Notes 2009 2008 2008 2008

Revenue 2 13,872,119 9,208,891 - 9,208,891
Cost of Sales (8,191,184) (6,810,536) (100,572) (6,911,108)

Gross Profit 5,680,935 2,398,356 (100,572) 2,297,784

Selling & distribution costs (1,280,129) (909,681) - (909,681)
Administration expenses (1,137,094) (1,197,009) (64,248) (1,261,257)
Research & development (1,132,625) (1,099,249) (32,881) (1,132,130)

expenses
Operating Profit/(loss) 3 2,131,086 (807,583) (197,701) (1,005,284)

Finance Income 4,072 11,706 - 11,706
Finance Costs (200,256) (199,795) - (199,795)
Finance Costs net (196,184) (188,089) - (188,089)

Profit/(loss) attributable to equity holders of the 1,934,902 (995,672) (197,701) (1,193,373)

company before tax
Income tax - -

Profit/(loss) attributable to 1,934,902 (1,193,373)

equity holders of the company for the year
Diluted earnings per share 4 6.51c -

(cent)
Basic earnings/loss per share 4 6.70c (4.54)c

(cent) Consolidated Balance Sheet Year ending 31 July 2009

Non-current assets
Property, plant and equipment 2,883,700 2,848,377
Intangible Assets 1,992,821 17,600
4,876,521 2,865,977

Current Assets
Inventories 1,896,341 1,215,682
Trade and other receivables 1,518,707 1,782,350
Cash and cash equivalents 2,893,438 94,036
6,308,486 3,092,068
Total Assets 11,185,007 5,958,045

Capital and reserves attributable to equity holders of the company

Ordinary Shares 5,760,671 3,310,655
Share premium 16,874,628 15,042,883
Other reserves 338,355 291,945
Retained losses (16,246,482) 18,181,385)

Capital and reserves attributable to equity of the
company 6,727,172 464,098
Minority interest in equity 120 120
Total Equity 6,727,292 464,218

Non-current liabilities
Borrowings 1,798,194 1,561,371
Government grants 202,087 209,575
2,000,281 1,770,946

Current liabilities
Borrowings 406,140 598,718
Trade and other payables 1,450,696 2,318,791
Deferred income 600,598 805,372
2,457,434 3,722,881
Total Liabilities 4,457,715 5,493,827
Total Equity and liabilities 11,185,007 5,958,045

Consolidated Cash Flow Statement Consolidated Balance Sheet For the year ending 31 July 2009

Cash flows from operations EUR EUR
Cash outflow from operations 1,133,619 (1,271,952)
Interest received 4,072 11,706
interest paid (200,256) (199,795)
Cash flows from operations 937,435 (1,460,041)

Cash flows from investing activities
Purchases of plant and equipment (475,604) (184,354)
Additions to intangible assets (1,988,434) (12,100)
Cash outflows from investing (2,464,038) (196,454)

activities

Cash flows from financing activities
Proceeds from issuance of ordinary 4,558,949 1,375,446

share
Cost of issuance of ordinary shares (277,188) (64,338)
Proceeds from debt factoring (23,038) 86,345
Proceeds from borrowing 164,000 375,000
Proceeds from leasing obligations 35,450 -
Repayments of borrowings (124,948) (47,202)
Repayments of leasing obligations (7,220) (3,987)
Cash flows from financing activities 4,326,005 1,721,264

Net increase/(decrease) in cash, cash equivalents
and bank overdrafts 2,799,402 64,770
Cash, cash equivalents and bank overdrafts at beginning of 94,036 29,266

year

Cash, cash equivalents and bank 2,893,438 94,036

overdrafts at end of year

Notes to the Consolidated Financial Statements 1. Basis of preparation

The financial statements are presented in EUR, which represents the functional currency of the Group as it is the currency of the primary economic environment in which the Group operates.

They are prepared on the historical cost basis except that financial instruments held for trading are recorded at their fair value.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements have been made by management in the application of IFRS that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year.

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and in preparing an opening IFRS balance sheet at 1 January 2004 for the purposes of the transition to IFRS.

The accounting policies have been applied consistently by Group entities.

2. Turnover Based on the risks and returns, the Directors consider the primary reporting format is by business segment. The Directors consider there is one centrally managed business segment being the design and manufacture of medical devices. Therefore the disclosure for the primary reporting segment has already been given in these financial statements. The secondary reporting format is by geographical analysis. All of the group's production facilities are in Ireland, the secondary reporting format is based on the geographical location of customers as follows:

Turnover by destination:
EU Countries 4,343,666
3,632,077
Rest of Europe 1,797,998
1,558,288
Far East 716,700
1,594,029
Middle East 169,590
219,819
Americas 1,662,710
6,758,213
Rest of World 518,227
109,694
9,208,891
13,872,119

The amount of turnover by class of business activity is as follows:

Sales of medical devices 9,108,891
13,872,119
Co-labelling advance payment revenues (see note (I) below) 100,000
-
9,208,891
13,872,119

3. Expenses

The following items have been included in arriving at the operating profit/(loss)
Depreciation (Note 13) 440,282 398,145
Amortisation (Note14) 24,114 10,901
Materials and consumables used 3,658,431 3,424,233
Other manufacturing costs 1,121,813 422,874
Employee benefits expenses ( Note 8) 4,876,094 4,173,533

Auditors remuneration