PAXMAN amends acquisition value of Paxman Group Ltd and year-end figures

PAXMAN informs that the company has changed its accounting treatment regarding the acquisition of Paxman Group Limited.

Updated accounting treatment of internal acquisition improves PAXMAN’s net profit by 1.1 MSEK
In 2017 PAXMAN AB (publ) acquired the entire issued share capital of Paxman Group Limited by means of a share for share exchange. This transaction was one between legal entities under common control and as such PAXMAN AB (publ) has now been advised by its auditor that it should have been accounted for as an internal group restructuring rather than as an acquisition. The results as previously announced have been restated in the annual report to reflect this change in accounting treatment. The main effect is that the difference between the purchase price and the tangible net assets of Paxman Group Limited as at the date of the acquisition (13.6 MSEK) will no longer be reported as goodwill, but instead posted direct against equity. Consequently, the charge for goodwill amortization in 2017 has been reversed. This improves the net profit/loss for the year 2017 by 1.1 MSEK compared to the figure previously announced but reflects a change in accounting treatment only and has no impact on trading or cash.

Consolidated income statement, adjusted

TSEK  Jan – Dec 2017
Net sales                31,332
Capitalized expenses                  4,953
Total operating income                36,285
Raw materials and consumables               -10,976
Other operating expenses               -18,035
Personnel costs               -12,472
Depreciation                 -1,598
Total operating costs               -43,081
Operating profit/loss                 -6,796
Net financial items                      -57
Profit/loss after net financial items                 -6,853
Tax                     128
Net profit/loss for the period                 -6,725

Consolidated balance sheet, adjusted

TSEK   2017-12-31
Intangible fixed assets            9,597
Tangible fixed assets          10,220
Financial fixed assets                 47
Total fixed assets          19,864
Inventories            8,547
Current receivables            8,838
Cash and bank balances                               8,357
Total current assets          25,742
Total assets          45,606


Equity          32,766
Provisions               108
Non-current liabilities               232
Liabilities to credit institutions                        2,528
Accounts payable – trade            7,341
Other current liabilities            2,631
Total current liabilities          12,500
Total equity and liabilities          45,606 

For further information, please contact:
Richard Paxman, CEO
Tel: +44 7968 020641
E-mail: richard@paxmanscalpcooling.com
www.paxmanscalpcooling.com

This information is information that PAXMAN AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13.30 CET on 27th April 2018.

About PAXMAN
The Paxman Scalp Cooling System has been developed by the Paxman family to reduce hair loss in breast cancer patients undergoing chemotherapy. The concept behind the system came when the mother of four, Sue Paxman, experienced first-hand the trauma of chemotherapy-induced hair loss. With close to 3,000 systems delivered in to hospitals, clinics and treatment centres around the world, PAXMAN is the leading supplier of Scalp Cooling technology. PAXMAN’s scalp-cooling cap is made from lightweight, biocompatible silicone that is soft and flexible, providing a snug yet comfortable fit during treatment. PAXMAN AB (publ) has its headquarters in Karlshamn (Sweden), with subsidiaries in Huddersfield (UK) and Houston, Texas (US)

The PAXMAN share is listed on Nasdaq First North. FNCA Sweden AB is the company’s Certified Adviser.

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