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.