The following replaces the 'Preliminary Results for the Year Ended 31 December 2014' announcement released on 4 June 2015 at 7.00 am under RNS number 1372P.

The full amended text is shown below:

OXFORD ADVANCED SURFACES GROUP PLC

(AIM: OXA)

Preliminary Results for the Year Ended 31 December 2014

Oxford Advanced Surfaces Group ("OASG") the AIM listed technology developer targeting engineered materials and surface modification applications in the automotive, aerospace, communications and energy markets announces today its preliminary results for the year ended 31 December 2014.

CORPORATE HIGHLIGHTS

·      In September 2014 Oxford Advanced Surfaces Limited (OASL) completed an investment round of £901,698 by issuing new shares and reducing OASG's interest to 77.54% in the trading subsidiary

·      OASL secured two commercial deals in 2014 in industrial coatings and Formula One®

·      Total income, including grants, increased from £3,000 to £86,000

·      Loss for the year reduced from £1,789k to £990k

·      OASL is actively engaged on running two pilot trials with customers and has 20 further evaluations in progress

·      OASG plc has a strong balance sheet with over £1.8m in cash (£2.6m including subsidiaries)

Editors' Note

Oxford Advanced Surfaces Group plc designs, develops and manufactures surface modification technology to address the bonding challenges of advanced materials in the automotive, aerospace, electronics and renewable energy markets. Our proprietary platform technology, Onto™ highly reactive chemistry, provides manufacturers with versatile solutions for even to the most difficult‑to-bond substrates such as engineering plastics, thermoplastic composites and carbon-based materials. Onto™ surface treatments can be integrated into existing manufacturing facilities for use in a wide range of surface functionalisation and adhesion promotion applications.

www.oxfordsurfaces.com 

CHAIRMAN'S STATEMENT

As outlined in the interim report, a strategic review was undertaken in 2014 as a consequence of which the group changed its strategy. The review concluded that, while the directors were confident in the long term potential of the group's operating business, Oxford Advanced Surfaces Limited (OASL), its ongoing potential would best be realised as a private company. 

The strategic decision was taken that OASL would secure private funding for continuance of its business plan and that Oxford Advanced Surfaces Group plc (the Company or OASG) would pursue new investment opportunities while concurrently seeking to maximise the value of its holding in OASL.

The remainder of the statement comprises two sections. The first outlines the changes resultant from implementation of the Company's strategy and the outlook for the Oxford Advanced Surfaces Group Plc as an AIM listed entity.  The second provides an update on the strategic and operational progress at OASL and its outlook as a private business in which the Company currently retains a majority holding.  

Company Update

In September 2014 OASL completed an investment round of £901,698 by issuing new shares and reducing OASG's interest to 77.54%.  On completion of the investment the Company retained a cash balance of £1.85m (excluding subsidiaries).

At the same time, a separate board was constituted for OASL.  Dr Peter Rowley and Dr David Bott stepped down as directors of the Company to assume new roles as directors of OASL, also joined by Mark Rowley, a representative of IP Group.  I assumed the responsibilities as chairman of the Company with the continued support of Philip Spinks, who remains as a Director of the Company in addition to his primary role as Chief Executive and Director of OASL.  

With supportive shareholders and a robust balance sheet the Company is in a strong position as it evaluates new investment opportunities. Further announcements will be made as the Company's investment strategy progresses.

Update on Oxford Advanced Surfaces Limited

During the year under review OASL secured two commercial supply partners for its products. The first was in industrial coatings where the combination of our ability to prime hard-to-bond plastics along with our ease of use in the field was the only viable option available, and the second was in motorsport; a Formula One® constructor. As a result of this second engagement OASL has expanded its efforts in motorsport and its products are currently under test by several other Formula One® constructors as well as those involved in the broader motorsport industry.

OASL has identified its key markets as automotive, aerospace, marine, defence, energy and industrial. Its most developed market is automotive, where its initial motorsport base has helped develop relationships with niche vehicle manufacturers and suppliers to bulk automotive manufacturers.  Motorsport also provides an excellent launch-pad for the aerospace, defence and marine industries and business development efforts in these key markets is already underway.

At the date of this report OASL has two further customers in scale pilot trials; one in the construction industry and one in composite materials development that would target the defence and marine markets. It has a further 20 live evaluations (mostly automotive and industrial applications) and is following up on over 55 leads.

OASL also ran further scale-up trials during the year and significantly simplified its manufacturing process.  As a result of this OASL has identified a suitable small scale toll manufacturer and the process is now ready for transfer to volume manufacture as customer demand increases. 

James Ede-Golightly

Non-executive Chairman

3 June 2014

Company Number: 5845469

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2014

Consolidated Statement of Financial Position

For the year ended 31 December 2014

Consolidated Statement of Changes in Equity

For the year ended 31 December 2014

Consolidated Statement of Cash Flows

For the year ended 31 December 2014

Notes to the Preliminary Results

For the year ended 31 December 2014

1.   Status of Financial Information

Oxford Advanced Surfaces Group plc is a public limited company incorporated in England and Wales and whose ordinary shares of 1p each are traded on the AIM Market of the London Stock Exchange.  This preliminary announcement consolidates the results of the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities") for the year ended 31 December 2014. The Company's registered office is the Centre for Innovation and Enterprise, Begbroke Science Park, Begbroke Hill, Woodstock Road, Begbroke, OX5 1PF.

The Board of Directors approved this preliminary announcement on 3 June 2015.  Whilst the financial information included in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") as endorsed by the European Union, this announcement does not itself contain sufficient information to comply with all the disclosure requirements of IFRS and does not constitute statutory accounts of the Company for the years ended 31 December 2014 or 31 December 2013.

The financial information has been extracted from the statutory accounts of the Company for the years ended 31 December 2014 and 31 December 2013.  The auditors reported on those accounts; their reports were unqualified and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

The statutory accounts for the year ended 31 December 2013 have been delivered to the Registrar of Companies, whereas those for the year ended 31 December 2014 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

2.    Basis of preparation

These consolidated and Company financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, IFRIC Interpretations and the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost convention and all values have been rounded to the nearest thousand, except where otherwise indicated. The functional currency of the Group and all the subsidiaries is Sterling.

The preparation of financial statements in conformity with IFRS as adopted by the European Union requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.

The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2013, except for the adoption of new standards and interpretations, none of which resulted in any impact on the accounting policies, financial position or performance of the Group.

3.    Going concern

Information on the business environment and the factors underpinning the Group's future prospects and product portfolio are included in the Chairman's Statement, Strategic Report and the Directors' Report. The Directors confirm that they are satisfied that the Group has adequate resources to continue in business for the foreseeable future, based on the current cash resources available. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

4.    Segmental Reporting

Following the Group's focus on its leading technologies, the Board is of the opinion that the business operates two distinct reportable operating segments. These are as follows:

·      The Reactive Chemistry segment is focused on developing and licensing novel Onto™ chemistry that provides advances in cross‑linking, adhesion and surface modification leading to new and advanced materials and material solutions.

·      The Particle Technology segment is focused on using and modifying particles for use in a wide range of applications, from optical coatings (VISARC™) through to fast moving consumer goods and agrochemicals. Work in this segment has been suspended at the present time.

No operating segments have been aggregated to form the above reportable operating segments. Individual projects do not meet the definition of segments, and as such the revenues and costs of individual projects are not formally separated. In addition, due to the research and development nature of the business, many projects are transitory, depending on success, and thus no meaningful data can be provided through such analysis. Each segment has a Group manager who is responsible for leading the technical research and development. They have individual budgets and the performance against budget and other non‑financial targets is regularly reviewed by the Board of Directors.

Within Reactive Chemistry commercial revenue represents income from multiple customers, one representing more than 10% of the income (£9,500). Grant income relates to the reimbursement of expense items incurred including materials and technical staff costs. There is no capital offset element to the grant income.

Within Reactive Chemistry commercial revenue represents income from one customer.

All non‑current assets are held in the UK. No other information is currently presented to the Board on a segmental basis. The Group's operations are all based in the UK and services are performed in the UK. There is no geographic split of revenues by location of customer as most customers are global corporations. Assets and liabilities are not measured or assessed on a segment basis. The business is not considered to be seasonal.

5.    Statutory Information

Copies of the 2014 Annual Report will be posted to shareholders at least 21 days before the Company's annual general meeting and may be obtained from the date of posting for one month free of charge from the registered office of Oxford Advanced Surfaces Group plc at CIE, Begbroke Science Park, Begbroke Hill, Woodstock Road, Begbroke, OX5 1PF and from our website www.oxfordsurfaces.com.

6.    Annual General Meeting

The annual general meeting ("AGM") is to be held on 30 June 2015. Notice of the AGM will be dispatched to shareholders with the Company's report and accounts.