FINANCIAL STATEMENTS
FOR THE YEAR
TO 30 JUNE 2013 
FOR
ALLERGY THERAPEUTICS PLC © Allergy Therapeutics plc www.allergytherapeutics.com 01
Our Business
Who We Are and Highlights          2
Chairman’s Statement          4
Chief Executive Officer’s Review         8
Our Markets           12
Our Products           16
Research and Development Report         20
Financial Review           24
Board of Directors           30
Financial Statements
Directors’ Report           36
Directors’ Remuneration Report         46
Nominations Committee Report         49
Independent Auditor’s Report to the Members of Allergy Therapeutics plc (Group)     50
Consolidated Income Statement         51
Consolidated Balance Sheet          52
Consolidated Statement of Changes in Equity        53
Consolidated Cash Flow Statement         54
Notes to the Financial Statements         55
Independent Auditor’s Report to the Members of Allergy Therapeutics plc (Company)    94
Company Balance Sheet          95
Notes to the Company Balance Sheet         96
Shareholder Information          101
Contents 02 © Allergy Therapeutics plc www.allergytherapeutics.com
Who We Are
Allergy Therapeutics is a European-based speciality 
pharmaceutical company focused on the treatment and 
prevention of allergy with aluminium free products.
Mission Statement
To create a sustainable, fast-growing and profitable global 
speciality pharmaceutical business with a substantial 
franchise in the allergy sector by developing innovative, 
patented, registered therapies for both the treatment and 
prevention of allergy-related conditions.
Strategy
The Company’s strategy is based on the principles of growth, 
diversification and careful cost management.
Specifically, it is the Directors’ intention to focus on the 
following strategies: 
• Accelerating organic growth by building and leveraging 
the current infrastructure to accelerate penetration 
of products in current markets and enter into new 
emerging markets
• Strengthen the Company’s existing product portfolio by 
developing and acquiring new products and/or entering 
into further licensing agreements
• Exploiting the potential for growth in the United States 
(US) market by registering and launching the Pollinex 
Quattro franchise in the US market.
In addition, the Company will continue to develop improved 
allergy vaccines with novel adjuvants, improved dosing 
regimens in order to improve patient compliance and new 
delivery formulations to augment the Group’s portfolio of 
patent-protected, registered pharmaceutical products.
Highlights
• Improved market share in Germany and other 
European markets
• At constant currency* gross revenue (excludes rebate 
and sales discount) increased 1% to £44.5 million 
(2012: £44.2 million)
 – Revenue £39.3 million (2012: £41 .3 million) impacted 
principally by foreign exchange movements 
 – Revenue outside of Germany increased 4% at 
constant currency to £16.6 million (2012: £15.9 million)
 – Decline in gross revenues (before rebate) in Germany 
of 2% at constant currency to £27 .3 million 
(2012 £27 .9 million)
• Launch of probiotic product range in a number of 
European countries
• Net profit after tax £0.5 million  (2012 £0.8 million)
• FDA clinical hold lifted in August 2012 on Company’s 
grass pollen allergy vaccine (Grass MATA MPL/ Pollinex
®
 
Quattro Grass 0.5ml)
• Pollinex
®
 Ragweed distribution agreement signed with 
Paladin Labs in December 2012, replacing the existing 
distributor in Canada 
• US Patent approved for sublingual administration of MPL 
adjuvant and vaccine antigens
* Constant currency uses prior year weighted average   
   exchange rates to translate current year foreign currency  
   denominated revenue to give a year on year comparison  
   excluding the effects of foreign exchange movements. 
   See table in the Financial Review for an analysis of revenue.  Chairman’s Statement Chairman’s Statement 06 © Allergy Therapeutics plc www.allergytherapeutics.com
During the year Allergy Therapeutics has focused on 
diversifying the Group’s product portfolio whilst evaluating 
potential partnering opportunities to commercialise our 
Pollinex
®
 Quattro product in the US. 
At the beginning of the financial year we were pleased to 
report that the clinical hold on the Group’s development 
program for Pollinex
®
 Quattro in the United States had been 
formally lifted by the US FDA (Food and Drug Administration). 
The Group is focussed  on securing a suitable partner with 
whom it intends to complete late stage clinical development, 
submit a BLA (Biologics License Application) to the FDA, and 
launch Pollinex
®
 Quattro in the important US market.  The 
Group has continued to work with the FDA to support the 
protocol for the Pollinex Grass 304 study and will update the 
market in due course with any developments. 
In the absence of a registered subcutaneous vaccine in the 
US for grass-related allergic rhinitis, commercialisation of 
Pollinex
®
 Quattro could revolutionise treatment in the US by 
providing effective, fast-acting treatment to allergy sufferers. 
Pollinex
®
 Quattro involves four pre-seasonal allergy vaccine 
injections administered over a month, making it an attractive 
alternative to the prolonged course of weekly to monthly 
injections over three years that is currently available with the 
allergen extract vaccines used in the US.
Outside of the US, the Group anticipates regulatory news 
in Germany, where it submitted a Marketing Authorisation 
Application (MAA) for Pollinex
®
 Quattro Grass 0.5 ml to the 
Paul Ehrlich Institute (PEI). PEI has not disclosed when an 
update on the review process can be expected owing to 
the significant increase in its workload as a result of the 
introduction of Therapeutic Allergen Regulation (TAV).
 
I am pleased to report that the Group has made good 
progress with its strategy to diversify the business, enter 
new markets and expand its product portfolio, resulting 
in reduced reliance on the historically important German 
market. The Group is progressing the registration process 
for products in Italy and Portugal and continues to invest 
prudently in promising R&D programmes. In addition, the 
Group has introduced three probiotics products – Kallergen-
Th, ATI-Prob and Pollagen, which have been well received in 
Italy and are expected to be launched in other markets later 
this year. The Group also launched Acarovac Plus in Spain, 
a modified-allergen product developed for the treatment of 
perennial mite allergy.
Although certain market conditions in Europe remain 
challenging, the Group is pleased to report an operating 
profit of £0.7 million (2012: £1 .1 million), the fourth year in 
succession an operating profit has been reported, coupled 
with continued investment in increasing the Group’s markets 
and research and development. Encouragingly, the Group’s 
sales in Germany have shown signs of improvement over the 
last 6 months in addition to increasing its market share and 
the Group as a whole is confident of its prospects, based on 
expected news and its strategy to expand the business into 
new and existing markets.
Peter Jensen
Chairman
13 September 2013
Chairman’s Statement  CEO’s Review CEO’s Review 10 © Allergy Therapeutics plc www.allergytherapeutics.com
The lifting of the FDA ’s clinical hold on the Group’s Pollinex
®
 
Quattro vaccine in the US at the beginning of the financial 
year was a major achievement for the Group. Elsewhere in 
the business the Group continued to focus on expanding into 
new markets and to diversify its product portfolio. 
Allergy Therapeutics has continued to grow its revenues 
in markets outside Germany, the Group’s largest market, 
as part of its broader strategy to reduce its reliance on 
revenues from this territory. The Group reported revenue 
in Germany of £23.6 million, accounting for 60% of the 
Group’s revenue compared with 73% reported in 2009.  
During the last six months of the year, the Group’s sales in 
Germany have shown signs of improvement, outperforming 
the market by 13 points in volume during the period. The 
European Commission has recently opened an investigation 
into whether the exemption from the increase in rebates in 
Germany constitutes state aid. If it is eventually concluded 
that the exemptions constitute state aid, then all unlawful aid 
may have to be repaid.
In other markets, sales in Italy and Austria increased by 3% 
and 8% respectively at constant currency. UK sales were 
down owing to the termination of the Anapen distribution 
agreement as announced in December 2012, but before 
Anapen sales were positive. Sales in the Spanish market have 
shown signs of recovery due to improvements implemented 
by management, after a decline over a number of years, 
resulting in a turnaround of the subsidiary.
In December 2012 the Group signed a new distribution 
agreement for Pollinex
®
 Ragweed, replacing the existing 
distributor with Paladin Labs, one of Canada’s leading 
specialty pharmaceutical companies with extensive 
experience marketing in-licensed products. I am pleased to 
report this is going well with sales increasing by 8% against 
the previous year.
Although we are beginning to see an improvement in certain 
markets, sales across the Group’s principal geographical 
markets continue to reflect the impact of challenging market 
conditions, governmental austerity measures and the 
weakening average Euro against sterling.  As a consequence 
the Group’s operating profit for the year was £0.7 million 
(2012: £1 .1 million). 
Measures implemented over the last two years to improve 
our competitive position in Europe are beginning to show 
positive results. Market data, which is available for the 12 
months to June 2013 showed a positive performance against 
the market across our main European markets. Germany was 
seven points above the market when measured by volume; 
by value improvements above the market were recorded as 
follows: Austria 12, Italy 15 and the Netherlands 17 points.
The partnering process for Pollinex
®
 Quattro in the US, 
although it has not entirely completed, has not generated 
a suitable partner to date for the company and as a 
consequence work is underway to explore alternatives to 
develop the US opportunity; an update will be provided on 
developments in due course. In Europe, a response to the 
MAA for Pollinex
®
 Quattro Grass 0.5ml submitted to the PEI 
is still awaited. The PEI has not disclosed when an update on 
the review can be expected.
During the year the Group has made good progress on 
its strategy to diversify its portfolio, expand into new 
geographical markets and identify new in-licensing 
opportunities. To this end the Group introduced three new 
probiotics products during the year: Kallergen-Th, ATI Prob 
and Pollagen, each targeting different forms of allergic 
disease. The Group also made progress with another product, 
Acarovac Plus, which has been launched in Spain. Acarovac 
Plus is a novel tyrosine-adsorbed, modified-allergen product 
developed for treatment of perennial mite allergy. 
Research and Development costs during the financial year 
have increased to £2.5 million (2012: £2.1 million) to reflect 
the Group’s focus on diversifying the business. Registrations 
have been undertaken in Peru and Venezuela for mite allergy 
products. Under the Therapeutic Allergen Regulation in 
Germany, progress has been made with the Pollinex Quattro 
Birch dose ranging study: clinical trial and ethics applications 
have been submitted in Germany, Austria and Poland and the 
dosing of patients starts in September 2013. The registration 
of various allergy vaccines in Portugal will be concluded in 
September 2013.
Chief Executive Officer’s Review © Allergy Therapeutics plc www.allergytherapeutics.com 11
Outlook 
The lifting of the clinical hold by the FDA in August 2012 
has allowed the Group to resume its Pollinex
®
 Quattro 
development programme in the US, where the search for 
a suitable development and commercialisation partner 
continues. In Europe we are also moving forward, 
implementing efficiencies and strengthening our position by 
winning market share and diversifying our revenue base. With 
these developments alongside expected news from PEI, we 
remain confident of the future prospects of the Company.
Manuel Llobet
Chief Executive Officer
13 September 2013 Our Markets Our Markets 14 © Allergy Therapeutics plc www.allergytherapeutics.com
We have a particular focus in Europe with our own 
established operations in important markets including 
Germany, Italy, Spain, Austria and the United Kingdom. Our 
newer operations in Switzerland and the Netherlands are 
developing as anticipated. The only major European market in 
which we are not yet present is France.
In markets where we do not have a direct presence, we 
often make our products available through partners. The most 
important distributor markets for the Company are Canada, 
the Czech and Slovak Republics and South Korea.
Germany is the Group’s main market generating 
approximately 60% of the Group’s revenue in the 12 months 
ending 30 June 2013, followed by Italy (11%), Switzerland 
(5%), Austria (5%), Spain (4%), Czech Republic and Slovakia 
(4% combined), Canada (4%), The Netherlands (3%) and the 
UK (2%).
Germany
Germany is the largest allergy immunotherapy market in the 
world by value, with annual sales of over €320 million. Since 
2010 the market has been affected by the austerity measures 
the German government put into place in 2010 and by the 
new regulatory environment for allergen therapies. Germany 
remains a key focus for the Group and improvements 
continue to be made in a number of key business areas 
to strengthen the Company’s approach to marketing the 
products. 
Italy
The total Italian allergy immunotherapy market is estimated to 
be worth €50 million in sales per year; although patients have 
been impacted by adverse economic conditions affecting their 
ability to pay for vaccines. The Italian immunotherapy market 
is dominated by sublingual products. However, despite these 
challenges, we continue to support our local organisation, and 
believe there remains a significant opportunity to continue to 
grow our business in this important market.
Spain
Total market sales in Spain are estimated to be €60 million 
per annum, with low single-digit growth during the past year. 
Growth in this market has been impacted by the country’s 
economic slowdown; however, it still remains a large market 
in terms of volume, with approximately 150,000 patients 
a year estimated to receive immunotherapy. Injectable 
immunotherapy products continue to be the treatment of 
choice for Spanish physicians in this treatment category.
United Kingdom
The UK is an important market due to its potential for 
future growth for the Group and the fact that it is an area of 
scientific development. Whilst there is limited use of allergy 
vaccines in the UK, this has the potential to change and the 
Company has been focused on marketing to the medical 
community, promoting greater awareness of current and 
more suitable treatment options. 
Austria
Austria is an established market with total market sales of 
approximately €18 million per year and our own operation is 
performing well and growing faster than the market.
The Netherlands
The total market size in The Netherlands is around €40 million 
a year. Like other European countries, new regulations require 
that only registered products can be sold. This should be to 
our advantage as we already have registrations in this market 
for our Pollinex products. Allergy Therapeutics is the only 
company showing growth in the market.
Switzerland
The allergy vaccine market in Switzerland is well established, 
and is worth approximately €12 million per annum. The 
acquisition (in the year ended 30 June 2011) of Teomed AG, 
the Swiss subsidiary, is providing an opportunity to improve 
earnings, and provides an established infrastructure from 
which to launch Pollinex Quattro in the future.
Our Markets © Allergy Therapeutics plc www.allergytherapeutics.com 15
Emerging Markets 
In 2012 we launched our products in Argentina, Venezuela, 
Colombia and Chile, and set up a new marketing operation 
in Argentina. Regulatory hurdles have caused slow sales in 
these Latin American markets this year; however it is still 
seen as a promising potential market.
For the purposes of the segmental reporting analysis 
Central Europe represents the markets of Germany, 
Austria, Netherlands and Switzerland, and Southern Europe 
represents Spain and Italy. The Other segment represents the 
distributor and licensee revenues through other worldwide 
markets including Canada, Czech and Slovak Republics, South 
Korea and Latin America.
Germany – 60%
Italy – 11%
Switzerland – 5%
Austria – 5%
Spain – 4%
Czech Republic & Slovakia – 4%
Canada – 4%
The Netherlands – 3%
UK & Export market – 2%
South Korea – 1%
Other – 1%
Revenue by Country Our Products Our Products 18 © Allergy Therapeutics plc www.allergytherapeutics.com
The Group sells a wide range of aluminium free allergy 
vaccines and diagnostics. The majority of sales are allergy 
vaccines and we sell both injectable vaccines and sublingual 
vaccines. Our vaccines and diagnostics trade under various 
brand names, however, under each brand name is a product 
that is produced in many different forms depending upon 
the specific allergy needs of the patient, as determined by 
the doctor. The majority of our sales are for the treatment of 
pollen-related allergies, particularly for allergies to grasses 
and trees.
According to the current opinion of expert immunologists, IgE 
mediated allergies (type one allergies) are due to deregulation 
of the T helper lymphocyte (TH) cell. Whereas healthy 
people develop tolerance to allergens, allergy sufferers have 
a TH2-dominated immune response with increased IgE 
and corresponding clinical symptoms. This deregulation of 
the immune system can be counteracted efficiently using 
specific immunotherapy (SIT). By administering high doses 
of allergen, the balance between TH1 and TH2 response 
to the allergen can be restored. Since SIT was first carried 
out successfully by Leonard Noon in 1911, it has become 
established as the only therapy addressing the cause of type 
one allergies.
Short course injectable vaccines form the largest segment of 
our vaccines portfolio and are comprised of one key product, 
Pollinex Quattro, which is our largest product range, as 
well as various other longer course products.  These other 
products trade under different names in different markets and 
include Pollinex, TA Mix top and Venomil.
Pollinex Quattro, launched in 1999, heralded a transformation 
in immunotherapy by introducing allergy vaccination with 
only four injections per course. The short treatment period 
is due to the use of L -tyrosine absorbed allergoids, an 
improved extract allergen that has been modified in order 
to lower its allergenicity while keeping its immunogenicity, 
and the innovative adjuvant monophosphoryl-lipid A (MPL). 
An adjuvant is a substance which improves the immune 
response to an antigen or allergen. MPL is derived from a 
lipopolysaccharide (LPS) which is obtained from the cell wall 
of Salmonella Minnesota R595 using a process of extraction, 
purification and detoxification.
As a vaccine adjuvant, MPL has been used for many years. 
Vaccines with systems containing MPL have been evaluated 
in various indications such as cervical cancer and malaria 
at GlaxoSmithKline. Two vaccines with an adjuvant system 
containing MPL, a hepatitis B vaccine and an HPV vaccine 
to protect against cervical cancer - Fendrix and Cervarix 
respectively - have received broad approval in Europe, the US, 
Japan and Canada. These modern, successful vaccines are 
already widely used.
The adjuvant effect of MPL in specific immunotherapy (SIT) 
has been documented in numerous studies and is seen in its 
essential role of promoting the switch from a TH2-directed 
immune response (with IgE induction) to a TH1-directed 
immune response.
Our sublingual product is Oralvac Compact. Its dosing schedule 
allows for a more rapid and simpler escalation of dosage 
making treatment more convenient for patients and doctors. 
Probiotics
Since June 2012, we have launched three new Probiotic 
products (Kallergen-Th, ATI Prob and Pollagen) across Spain, 
Italy and Portugal. The products contain specific combinations 
of Lactobacilli and Bifidobacteria. 
Acarovac Plus
Acarovac Plus was launched in Spain in March 2013 and is a 
novel tyrosine-adsorbed, modified-allergen product developed 
for treatment of perennial mite allergy. The product has been 
standardised to meet a dose regime consistent with “ one 
bottle” convenience.  Clinical evaluation and immunogenicity 
studies demonstrate excellent patient tolerability and serological 
analyses consistent with a favourable shift in Th1/Th2 balance 
compared with an unmodified version of the product.  
Licensed Products
DAP is a product for exclusive use in the diagnosis of type I 
or immediate hypersensitivity to benzylpenicillin and related 
antibiotics (betalactams) by means of cutaneous tests (prick 
and intradermal). Allergic reactions to betalactams are the 
most common cause of severe adverse drug reactions and 
there is an increasing prevalence in the population (up to 10% 
of the German population reports an allergy to penicillin). DAP 
was launched in Italy in May 2011 and in the UK in July 2011 .
Our Products © Allergy Therapeutics plc www.allergytherapeutics.com 19 Research & Development Research & Development 22 © Allergy Therapeutics plc www.allergytherapeutics.com
This has been an important year for the Group during which 
several key strategic development goals were achieved.
Following the submission of a Complete Response the FDA 
lifted the clinical hold on Pollinex
®
 Quattro Grass IND on 3 
August 2012. The Group has gained approval from the FDA 
to progress its grass clinical development programme in 
the US in an Environmental Exposure Chamber (EEC) and 
discussions with Health Canada (BGTD) are now planned to 
enable the pivotal chamber study to be performed. 
In June 2011 the Group received feedback from the PEI’s 
review of the Group’s Grass MATA MPL 0.5ml application 
for the MAA, which was submitted in March 2009. The PEI 
raised a number of questions on the MAA and requested 
further clarification on several points. The Group prepared 
comprehensive responses which it believes have addressed 
the points that were raised. The responses were submitted to 
the PEI in November 2011 and the Group is awaiting feedback.
As previously announced, the Therapeutic Allergen Regulation 
(introduced by the PEI, the Regulatory Authority for biological 
products in Germany) has changed the regulatory landscape. 
The Group submitted Marketing Authorisation Applications 
(MAAs) for our key products in December 2010. The Group 
has yet to receive feedback from the PEI, however, additional 
clinical information will be required on some of these 
products over the next few years to 2017 , and the Group has 
therefore begun preparations for clinical trials.
Over the last year the Group has continued to develop 
additional potential markets in Latin America, Asia and 
Europe. Great strides have been made in understanding the 
medical & regulatory requirements in these markets and 
to adapt the portfolio accordingly to supply the appropriate 
products and supporting information.
Research & Development © Allergy Therapeutics plc www.allergytherapeutics.com 23 Financial Review Financial Review 26 © Allergy Therapeutics plc www.allergytherapeutics.com
The following section should be read in conjunction with the 
financial statements and related notes on pages 36 to 100.
Overview
The results for the twelve months to 30 June 2013 
demonstrate continuing profitability, despite difficult market 
conditions, with a Group operating profit of £0.7 million (2012: 
£1 .1 million); the Group has now generated an operating profit 
for the fourth year in a row.
Revenue
Despite weak allergy vaccine markets in Europe, revenue 
at constant currency, excluding the impact of rebates and 
discounts, was marginally better at £44.5 million (2012: £44.2 
million). This can be seen in the table below: 
2013 2013 2013 2012 2012 2012
Germany Other T otal Germany Other Total
£m £m £m £m £m £m
Revenue 23.6 15.7 39.3 25.4 15.9 41 .3
Add rebates and discounts 1.7 0.5 2.2 2.5 0.4 2.9
Gross revenue 25.3 16.2 41.5 27 .9 16.3 44.2
Adjustment to retranslate at prior year foreign 
exchange rate
2.0 1.0 3.0 - - -
Gross revenue at constant currency 27 .3 17.2 44.5 27 .9 16.3 44.2
Revenue 23.6 15.7 39.3 25.4 15.9 41 .3
Adjustment to retranslate at prior year foreign 
exchange rate
1.9 0.9 2.8 - - -
Revenue at constant currency 25.5 16.6 42.1 25.4 15.9 41 .3
Financial Review © Allergy Therapeutics plc www.allergytherapeutics.com 27
The Group recognised revenue of £1 .0 million (out of a total 
receipt of £1 .25 million) in relation to signing a new distributor 
for Canada.
With a weaker EUR:GBP average exchange rate during the 
year compared to the prior year, revenue decreased by 5% 
to £39.3 million (2012: £41 .3 million). The average EUR:GBP 
exchange rate in the period was 1 .24 compared to 1 .15 in 
the previous period; the weakening Euro adversely impacted 
revenue by £2.8 million. The Group has continued to grow its 
revenue in markets outside Germany, and to reduce its reliance 
on the German market, with 60% of revenue originating in the 
territory compared with 73% in 2009. In addition to the sale of 
allergy vaccines, the Group has continued to look to increase 
its revenue from in-licensed products; although revenue was 
impacted in the year by the loss of Anapen sales due to the 
termination of the agreement with Lincoln, the supplier of 
Anapen, following issues with the device. Total sales from 
in-licensed products contributed £0.7 million this year (2012: 
£1 .5 million). However, the key product is still Pollinex
®
 Quattro, 
which accounts for 49% of sales.
Germany experienced various austerity measures and gross 
sales at constant currency in Germany fell slightly to £27 .3 
million (2012: £27 .9 million). During the period the Group was 
subject to a preliminary exemption from the full rebate charge 
in Germany for the first half of the financial year, although 
for the second half the full rebate was charged. The Group 
also benefited from an exemption to the increase in the 
German rebate for the period January 2012 to June 2012. The 
European Commission has recently opened an investigation 
into whether the exemption from the increase in rebates in 
Germany constitutes state aid. If it is eventually concluded 
that the exemptions constitute state aid, then all unlawful aid 
may have to be repaid (please refer to Note 28).
Italy’s sales at constant currency increased by 3%, which 
was a strong result given the weak market during the year. 
Similarly, Austria showed strong growth in sales of 8% in the 
year. By contrast the Group’s sales in Spain and the Czech 
and Slovak Republics declined marginally during the year.  
Sales in the Latin American market were disappointing for the 
year owing to a number of registration delays.
Gross Profit
Tight discipline on costs in all areas helped drive 
manufacturing overheads lower against the prior year by 
£0.4 million. This lower cost base combined with lower costs 
attributable to Anapen sales helped reduce the cost of goods 
to £12.0 million (2012: £13.7 million). Consequently, the gross 
profit percentage improved by 2.7% points, to 69.6%, leading 
to a gross margin of £27 .3 million (2012: £27 .6 million).
Operating Expenses
Total overheads are slightly higher against the prior year at 
£26.7 million (2012: £26.5 million). The weaker Euro helped 
reduce distribution costs, which are mainly European sales 
and marketing costs, to £16.3 million (2012: £17 .9 million). 
Administration expenses include a cost of the fair valuation 
of foreign exchange hedges, generating a liability at the year 
end of £0.3 million. At the prior year end the fair valuation 
generated an asset; together these created a loss in the year 
of £0.8 million (2012: gain £1 .3 million). The initiation of the 
dose ranging study for Pollinex Quattro Birch started during 
the year and was the main factor behind the increase in R&D 
costs to £2.5 million (2012: £2.1 million).
The Euro denominated loan was repaid in April 2012, which 
means there is no retranslation difference on the loan in this 
period (2012: £1 .0 million credit). The finance expense reflects 
the absence of the loan, with the expense in the period 
being the interest on the overdraft and German pension fund 
finance cost. The overdraft was repaid at 31 December 2012 
but drawn against at the year- end as expected due to the 
seasonality of the Group’s business.
T ax 
The tax credit of £0.1 million during the year relates mainly 
to the recognition of a deferred tax asset in respect of 
accumulated UK trading losses generated by the Group’s 
investment in R&D in previous years. This asset has been 
recognised following several years of taxable profits and 
expected future profits. An R&D tax credit was recognised 
during the prior year. In both years these credits offset tax 
charges in some of the overseas subsidiaries.
Balance Sheet
With the major capital investment programme now complete 
and a lower maintenance level of spend now required, 
property, plant and equipment has fallen from £7 .6 million to 
£7 .3 million as the depreciation charge for the period is higher 
than new equipment purchases. Goodwill remains broadly 
similar at £2.6 million, whilst other intangible assets have fallen 
by £0.8 million mainly due to the cancellation of the agreement 
with Lincoln Medical Limited for the Anapen device. 28 © Allergy Therapeutics plc www.allergytherapeutics.com
Total current assets excluding cash have increased by £1 .1 
million to £13.2 million (2012: £12.1 million) primarily due to 
an increase in debtors related to the preliminary exemption to 
the rebate increase in Germany.
Retirement benefit obligations, which relate solely to the 
German pension scheme, increased to £6.2 million (2012: 
£4.7 million). The increase in the liability was driven by a 
fall in German bond yields at the year end compared to the 
previous year.
Net cash generated by operations remained positive, with a 
reported inflow of £3.0 million (2012: £2.9 million).
Financing 
The fundraising that took place in April 2012 raised £12.6 
million through a combination of convertible debt (£4.0 million) 
and equity (£9.3 million) with CFR Pharmaceuticals acting as 
the cornerstone investor. The funds raised have enabled the 
Group to reduce its financing costs by repaying the bank loan 
facility and replacing it with a seasonal overdraft facility.  
The Directors believe that the Group will have adequate 
facilities for the future and accordingly they continue to adopt 
the going concern basis in preparing the full year results.
Ian Postlethwaite
Finance Director 
13 September 2013 © Allergy Therapeutics plc www.allergytherapeutics.com 29 Board of Directors Board of Directors 32 © Allergy Therapeutics plc www.allergytherapeutics.com
Peter Jensen
Non-Executive Chairman (62)
Appointed to the Board in October 2010 and appointed Non-
Executive Chairman on 1 January 2011 .
As Non-Executive Chairman, Peter is responsible for 
leadership of the Board by ensuring clear company strategy, 
board effectiveness, good corporate governance and effective 
communication with shareholders.
Peter held a number of senior roles in his 21 years with 
SmithKline-Beecham. Between 1994 and 1998 he was 
Chairman of Consumer Healthcare Europe and between 1998 
and 2001 he held the position of President of Worldwide 
Supply Operations, based in Philadelphia.
Since leaving SmithKline-Beecham at the time of the merger 
with Glaxo, Peter has held a number of non-executive director 
and chairman roles for various public and private companies. 
These include Domino Printing Sciences plc, Glenmorangie 
plc, Genetix Group plc, Celsis International plc and Victoria plc.
In addition to his role at Allergy Therapeutics, Peter is 
currently Chairman of Nottingham Racecourse, Screendragon 
Limited, The Home of Horseracing Trust Limited and The 
British Sporting Art Trust and is a director of The Osborne 
Studio Gallery Limited.
Peter chairs the Nomination Committee and is also a member 
of the Audit Committee.
Board of Directors
Manuel Llobet
Chief Executive Officer (49) 
Manuel Llobet joined the Group in July 2009 following the 
successful refinancing in which Azure Ventures Limited was 
the main investor. 
Prior to this appointment, Manuel was the Principal 
Consultant for Biohealth LLC and CEO of International 
Operations of the Weinstein family’s group of companies. 
Manuel was responsible for international development of the 
Weinstein family’s group of pharmaceutical companies in 20 
countries.
Mr Llobet has over ten years’ experience working in the 
pharmaceutical industry, primarily in South America, and 
has served as Executive Director of Corporación Drokasa 
where he was responsible for a US$25 million AAA-rated 
bond issue to finance the group’s expansion plans; CEO of 
Laboratorios Andrómaco, where he led the group to an IPO 
on the Santiago Stock Exchange; and Business Development 
Manager for Laboratorio Chile. Manuel participated in the 
Executive Program at the Graduate Business School of 
Stanford University and has an MBA from IESE, Universidad 
de Navarra in Barcelona. Manuel also has degrees in Industrial 
Business Management and Chemical Engineering from 
Universitat Ramon Llull in Barcelona.
As Chief Executive Officer, Manuel is responsible for the 
executive management of Group operations, investor 
relations, and implementation of the Board’s collective 
decisions overseeing all operational aspects of the Group and 
directing the long-term strategy. © Allergy Therapeutics plc www.allergytherapeutics.com 33
Ian Postlethwaite
Finance Director (50) 
Ian Postlethwaite joined Allergy Therapeutics in April 2002 
as Finance Director. Prior to this he worked for Ellerman 
Investments (1997 - 2002), a UK private equity house, 
undertaking the roles of Chief Executive Officer with AFS, 
one of the largest independent finance houses in the UK, 
and Finance Director with a number of successful start-up 
technology companies. Previously he held senior finance 
positions with Ericsson, from 1994 - 1997 , and Philips 
Electronics from 1989-1994. He is a Fellow of the Chartered 
Association of Certified Accountants and is a non-executive 
director of Shoreham Port Trust. 
As Finance Director, Ian is responsible for Group financial 
reporting and control, tax, finance systems and internal audit. 
Ian is also the Company Secretary, a position he has held 
since 2004.
Stephen Smith
Non-Executive Director (60) 
Stephen Smith is a Chartered Management Accountant, 
Fellow of the Association of Corporate Treasurers and 
Member of the Institute for Turnaround. Since 1995, he has 
operated as an independent executive, Non-Executive Director 
and interim manager (CRO/CEO/COO/FD) on an international 
basis. Up to 1995 Stephen held various senior financial 
positions in UK based international public companies including 
6 years as Group Treasurer of The Rank Organisation and 3 
years as Group Finance Director of a quoted hotel company. 
Stephen chairs the Audit and Remuneration Committees, is a 
member of the Nomination Committee which he chaired until 
1 January 2011 and is the Senior Non-Executive Director. 34 © Allergy Therapeutics plc www.allergytherapeutics.com
Alejandro Weinstein Jr
Non-Executive Director (55)
Alejandro Weinstein Jr. is CEO of CFR Pharmaceuticals, 
Chile. CFR Pharmaceuticals was listed on the Santiago Stock 
Exchange in 2010, with a presence currently in 17 countries 
concentrated in South America. He is responsible for the 
entire Weinstein family group of pharmaceutical companies, 
whose origins can be traced back to 1922. 
Alejandro has been active in developing and managing several 
businesses and start-ups in the pharmaceutical industry and 
the healthcare sector, including Genomika Foundation, a stem 
cell research organisation; Biomedical Research Consortium, 
a joint venture between a biotech R&D Company and a 
university; Vidacel and Banco de Vida, public and private stem 
cell banks in Chile; and several other joint ventures with local 
and foreign R&D companies. Alejandro has a BA, is a Certified 
Public Accountant and participated in the Owner/President 
Management Program (OPM) at Harvard Business School.
Alejandro sits on the Nomination Committee.
Thomas Lander, M.D.
Non-Executive Director (61)
Dr. Thomas Lander, M.D. is board certified in internal 
medicine and diabetology and, moreover, has a strong 
scientific background in oncology and immunology with 
a special emphasis on immunotherapy. He trained at the 
Technical University and the Institute for Immunology, 
Munich, Germany. He has spent more than 25 years in senior 
executive positions in R&D with the pharmaceutical industry 
including Boehringer Ingelheim, Novo Nordisk, Bristol-Myers-
Squibb and GlaxoWellcome (GlaxoSmithKline) before joining 
Merck KGaA (Merck Serono) as Executive Vice President, 
Global Clinical R&D and Chief Medical Officer in 2003.
In 2006 he made a move to the biotech industry as managing 
director of CureVac GmbH, Tuebingen. Since 2009, Dr. Lander 
has been working as a strategic consultant and also a non-
executive director for several European pharmaceutical and 
biotech companies.
Thomas sits on the Remuneration Committee.  Directors’ Report Directors’ Report 38 © Allergy Therapeutics plc www.allergytherapeutics.com
The Directors present their annual report and the audited financial 
statements for the 12 months ended 30 June 2013. The financial 
statements are for Allergy Therapeutics plc (the “Company”) and 
its subsidiary companies (together, the “Group”).  
Principal activities
The Group is engaged in the development, manufacture, 
marketing and sale of a range of pharmaceutical vaccine 
products designed for the immunological treatment of the 
allergic condition and also licenses in related products. 
Vaccinations take the form of allergen-specific, named-
patient-specific and standard products in injectable and 
sublingual presentations. The business is headquartered 
in Worthing, West Sussex, where development and 
manufacturing is based, with sales and marketing subsidiaries 
in Germany, Austria, Italy, Spain, The Netherlands, Switzerland 
and Argentina and representative offices in Poland and the 
Slovak Republic.
Results
The profit for the year after taxation was £0.5 million (2012: 
£0.8 million). The results for the year are set out on page 51 
and are dealt with in more detail in the Financial Review.
Business review
The purpose of this business review is to inform members of 
the Group and help them to assess the Group’s performance 
during the year, through financial and non-financial activities, 
outlining the trends and factors which are likely to influence 
future developments. A review of development and 
performance of the Group, including important events, 
progress during the year, the financial performance during 
the year and likely future developments, can be found in the 
Chairman’s Statement on pages 4 to 6, the Chief Executive 
Officer’s Review on pages 8 to 11 and the Financial Review on 
pages 24 to 28 and are incorporated in this report by reference.
Review of the Group’s business and Key 
Performance Indicators 
The management consider the Key Performance Indicators 
(KPIs) of the business to be revenue, operating profit, net 
cash generated and staff turnover.
Revenue in the year was £39.3 million compared to £41 .3 
million in the previous year, a reduction of less than 5%, 
impacted primarily by foreign exchange.
The operating profit was £0.7 million (2012: £1 .1 million), 
the decrease being a consequence of the fall in revenue 
(although this was limited by effective cost control measures).
Net cash generated by operations for the year was an inflow 
of £3.0 million (2012: £2.9 million). 
Staff turnover, including redundancies and temporary staff, in 
the UK during the year was 19.1% (2012: 20.3%), compared 
to an average UK staff turnover rate of 12.5% (2012: 12.4%), 
(data supplied by the Chartered Institute of Personnel and 
Development). Excluding redundancies and temporary staff, 
the turnover rate was 12.4% (2012: 9.7%).
Description of the principal risks and 
uncertainties facing the Group
In common with many pharmaceutical companies the Group 
faces a number of risks and uncertainties. Internal controls 
are in place to help identify, manage and mitigate these risks. 
The main risks have been identified as follows:
Risk that the Group is unable to provide effective 
commercially successful products
Continued development of viable new products and their 
successful registration and marketing is key to the success of 
the Group and is a costly and lengthy process. Rationale for 
new product development may indicate potential; however 
following significant investment there is no guarantee that a 
product will be successful.
Two key opportunities for the Group are developing and 
commercialising Pollinex Grass in the US and the PEI market 
authorisation for Pollinex Quattro Grass 0.5ml in Germany. 
Product liability risk
Despite extensive product testing prior to market launch, 
products may produce unanticipated adverse side effects 
that may hinder their marketability. The Group may be 
insufficiently covered for any potential litigation which in 
some cases can potentially be open-ended. The Group’s 
manufacturing facilities and those of some of its suppliers 
are subject to regulatory requirements and there is a risk 
that such facilities may not comply with such requirements. 
The Group maintains product liability insurance and ensures 
systems and processes relating to the manufacture of its 
products are compliant and regularly reviewed. It has a 
pharmacovigilance team in place to monitor and address any 
safety issues arising.
Director’s Report © Allergy Therapeutics plc www.allergytherapeutics.com 39
Intellectual property risk
Group patents may be challenged at any time and any 
unsuccessful defence may cause the Group to lose protection 
for its products and subsequently affect further development 
and sales. The Group is reliant on some intellectual property 
owned by external stakeholders that, if lost, could hinder 
the commercialisation of some of it products. The Group has 
internal and external patent experts. Internal controls are in 
place to avoid disclosure of patentable material and to protect 
existing patents. Arrangements are also in place to notify the 
Group of any infringements of our intellectual property which 
it would defend robustly.
Economic risks
A high level of risk is attached to the research, development 
and commercialisation of innovative drugs. The Group 
ensures that business cases are scrutinised before Board 
approval and that any increases in costs are justified. Key 
suppliers may be unable to execute contractual requirements 
that hamper product development and/or the route to 
markets, but the Group maintains appropriate measures to 
protect its supply chains. The Group may be unable to attract 
partners or licensees on favourable terms or recruit the right 
staff to help develop and market its products. Approximately 
60% (2012:64%) of Group sales are made in Germany and 
therefore Group results are sensitive to German legislation 
and government policies, and performance of the German 
market. To mitigate this risk, the Group intends to expand its 
revenue outside Germany.
Pharmaceutical products are subject to far greater controls 
on price in certain markets than other products in the 
marketplace. Some governments intervene directly in setting 
price levels and rebates paid into public sick funds, especially 
with an increasing aged population in developed countries. 
The Group cannot accurately predict when, where and how 
such controls and restrictions may be altered, either to its 
benefit or detriment, but it does conduct regular reviews 
of pricing and reimbursement levels and assessments of 
healthcare reforms on pricing. 
Financial risks
Adequate funding may not be available to the Group, either 
through reserves or external partners for the advancement of 
clinical trials, manufacturing and marketing. Failure to obtain 
further funding may lead to postponement or cancellation 
of programmes. The Board actively reviews the financial 
requirements of the Group on a regular basis in order to 
ensure that adequate funding is available. 
A majority of the Group’s sales are denominated in Euros 
whilst the manufacturing and most corporate administration 
costs are in the UK and therefore the Group is exposed to 
volatility in exchange rate fluctuations. The Group monitors 
exchange rates regularly and implements hedges to mitigate 
such risks.
Clinical and regulatory
The Group operates in a highly regulated environment 
for the testing, manufacture and supply of its products. 
Compliance with clinical and regulatory requirements within 
the EU affects not only the cost of product development 
and resource use, but also the time required to comply. 
Increased regulation may require products to be amended 
to comply with regulations and/or products have to be 
withdrawn, reducing revenues and/or increasing costs. 
Regulatory authorities such as the FDA are increasingly 
focussed on the benefit/risk of pharmaceutical products and 
safety data making it more onerous to obtain regulatory 
approval. Compliance systems are in place to ensure all 
clinical, manufacturing and marketing activities comply 
with regulations in the EU and other territories. Standard 
operating procedures are maintained to ensure compliance 
with good manufacturing practice. The Group strictly monitors 
new industry regulations and engages with key Regulatory 
Authorities to inform the Group’s strategic direction and 
identify factors likely to affect the future development, 
performance and position of the Group’s business.
Financial risk management objectives and policies
Note 23 in the Notes to the Financial Statements gives 
details of the Group’s objectives and policies for risk 
management of financial instruments.
Position of the Group’s business at the end of the year
The implementation of commercial and marketing initiatives 
across all territories has helped to maintain and strengthen the 
Group in conjunction with the development of new products.
Main trends and factors likely to affect the future 
development, performance and position of the Group’s 
business
Allergy remains a market with largely unmet medical needs 
in many countries. The allergy “epidemic” continues to 
grow and it is increasingly recognised that, for many people, 
hay-fever is far from a trivial matter. There are currently few 
competitors in the niche market in which the Group operates. 40 © Allergy Therapeutics plc www.allergytherapeutics.com
Environmental matters
The Board is committed to minimising the Group’s impact on 
the environment and ensuring compliance with environmental 
legislation. The Board considers that its activities have a low 
environmental impact. The Group strives to ensure that all 
emissions including the disposal of gaseous, liquid and solid 
waste products are controlled in accordance with applicable 
legislation and regulations. Disposal of hazardous waste is 
handled by specialist agencies. 
Employees
The Group employed 376 people at the year-end and 
is committed to achieving equality of opportunity in all 
employment practices. A thorough review of all employees 
is performed annually to identify and promote areas that 
require development and growth; feedback is encouraged and 
sought. Staff are motivated by performance related incentives, 
which help to attract and retain the right people, and are 
encouraged to achieve business targets through market-rate 
pay, discretionary performance based bonuses and long term 
incentive programmes. The Board is committed to retaining 
staff as a high priority for the Group and implementing well 
balanced, challenging incentives makes this possible. Training 
and development appropriate to individual and business needs 
is offered and remuneration for professional development is 
considered on a case by case basis. 
The Group places considerable value on the involvement of 
its employees and has continued to keep them informed 
on matters affecting them as employees and on the various 
factors affecting the performance of the Group. This is 
achieved through formal and informal meetings and email 
updates. Family friendly employment policies conform to 
statutory requirements and flexible working practices are 
adopted where viable.
The Group implements equality of opportunity in all of its 
employment practices, policies and procedures. Employees 
are highly valued and their rights and dignity are respected. 
The Group practices equal treatment of all staff and potential 
staff irrespective of their race, creed, colour, sexual orientation, 
nationality, ethnic origin, religion, disability, age, gender or 
marital status. The equal opportunities section of the Staff 
Handbook covers all permanent and temporary employees, job 
applicants, agency staff, consultants and contractors.
Employment policies
Equal opportunities
The Group is committed to providing equal opportunities 
in employment irrespective of background, age, sexual 
orientation, religion, gender, nationality, marital status or 
disability. Our aim is to attract the best people in the industry 
and we believe in maximising every employee’s potential. The 
Group does not tolerate any harassment or discrimination.
Disabled people
The Group, in considering applications for employment from 
disabled people, seeks to ensure that fair consideration is 
given to the abilities and aptitudes of the applicant while 
having regard to the requirements of the job for which he or 
she has applied.  Employees who become unable to carry 
out the requirements of the job for which they have been 
employed are given individual consideration and, depending 
on the nature, severity and duration of the disability may be 
considered for alternative work.
Communication
The Group has an open communication policy with its 
employees. Regular communication on the strategy, plans 
and performance of the Group is undertaken and reinforced 
by site meetings of staff as well as briefings by Directors 
and line management. In the UK, employees have access 
to Group information on the intranet. Information about the 
Group is also available on the internet at 
www.allergytherapeutics.com
Health & Safety
The Group is committed to providing a safe environment 
for its employees and others who are engaged in or may be 
impacted by the Group’s operations and considers health & 
safety a priority. Policies relating to Health & Safety are set 
out on the Group’s Intranet and Staff Handbook. Procedures 
are monitored and improvements identified through periodic 
audits and safety inspections. The Group’s Health and Safety 
Committee meets regularly to discuss issues and promote 
good practice with Health & Safety Officers promoting and 
monitoring safe working conditions. The Directors review the 
Health & Safety report at the monthly board meetings.
Corporate social responsibility
The Directors recognise the increasing importance of 
corporate social responsibility and endeavour to take into 
account the interests of the Group’s stakeholders, including 
its investors, employees, customers, suppliers and business 
partners when operating its business. © Allergy Therapeutics plc www.allergytherapeutics.com 41
Directors and Directors’ interests
The Directors who held office during the period 
were as follows:
Date of appointment
Manuel Llobet Chief Executive Officer 1 July 2009
Ian Postlethwaite Finance Director 1 July 2004
Peter Jensen Non-Executive Chairman 1 October 2010
Thomas Lander Non-Executive Director 2 May 2012
Stephen Smith Non-Executive Director 8 September 2004
Alejandro Weinstein Non-Executive Director 1 July 2009
The dates of appointment above refer to appointment as 
Directors of Allergy Therapeutics plc.
The Directors who held office at the end of the financial 
year had the following interests in the ordinary shares of the 
Company:
 At beginning of year: At end of year:
Name Ordinary Shares Options & LTIPs Ordinary Shares Options & LTIPs
Manuel Llobet
1
3,125,000 2,190,000 3,125,000 3,065,000
Ian Postlethwaite 493,000 2,983,500 1,360,000 1,696,000
Peter Jensen 120,000 - 120,000 -
Thomas Lander - - - -
Stephen Smith 776,513 150,000 776,513 150,000
Alejandro Weinstein
2  
201,986,132 - 201,986,132 -
1 
Has an interest in shares pursuant to his interests in Wild Indigo.
2 
Has an interest in shares pursuant to his interests in Yissum Holding 
Limited, Azure Ventures & CFR International.
Directors’ indemnity
The Directors and officers of the Company are insured against 
any claims arising against them for any wrongful act in their 
capacity as a Director, officer or employee of the Group, 
subject to the terms and conditions of the policy.
Structure of the Company’s capital
The Company’s share capital which is traded on the AIM 
market of the London Stock Exchange comprises a single 
class of ordinary shares of 0.1 pence each, which each carry 
one voting right and all rank equally with each other. At 30 
June 2013, 409,866,831 shares were allotted and fully paid. 
Details of movements in the Company’s share capital during 
the period are shown in Note 26 to the financial statements.
Details of employee share schemes are set out in Note 27 
to the financial statements. Participants in employee share 
schemes have no voting or other rights in respect of the 
shares subject to their awards until the options are exercised 
or conditional shares fully vest, at which time the shares rank 
pari passu in all respects with shares already in issue. 42 © Allergy Therapeutics plc www.allergytherapeutics.com
Substantial shareholders
At 10 September 2013 the Company had been notified of the 
following major interests, each representing 3% or more of 
the existing issued ordinary share capital:
Shareholder Ordinary shares % held
CFR International SPA & Associated Holdings 201,986,132 49%
Southern Fox Investments 92,603,671 23%
Invesco Perpetual 14,548,209 4%
Changes to interest in own shares
Neither the Company nor any Employee Benefit Trust holds 
any shares in the Company.
The Board
Members Director since Attendance at meetings 2012-13
Manuel Llobet July 2009 15/15
Ian Postlethwaite July 2004 15/15
Peter Jensen October 2010 15/15
Thomas Lander May 2012 15/15
Stephen Smith September 2004 15/15
Alejandro Weinstein July 2009 7/15
The Board is led by the Chairman, who is non-executive, and 
comprises the Chief Executive Officer, the Finance Director, 
and three other Non-Executive Directors. Biographical details 
of all Board members are shown on pages 32 to 34. The 
roles of Chairman and Chief Executive Officer are separate. 
The Directors feel that given the current size of the Group, 
the roles of Company Secretary and Finance Director are not 
deemed necessary to be separated. All Directors have direct 
access to the services and advice of the Company Secretary 
and to external independent professional advice at the 
expense of the Group.
The Board has a formal schedule of matters specifically 
reserved to it for decision at Board meetings. This covers 
strategy and management, financial reporting and controls, 
internal controls, major contracts, external communications 
with investors, executive committee appointments and 
remuneration, appropriate delegation of authority, corporate 
governance matters and appropriate policies for key areas 
including health and safety, corporate social responsibility and 
the environment.
The Board delegates certain other responsibilities to 
committees, details of which are set out below.
Board Committees
The Group has an Audit Committee, a Remuneration 
Committee and a Nominations Committee, all with written 
terms of reference including formally delegated duties and 
responsibilities. The Chairman of each committee reports 
directly to the Board.  © Allergy Therapeutics plc www.allergytherapeutics.com 43
The Audit Committee comprised Stephen Smith (Chairman) 
and Peter Jensen. The Audit Committee meets at least twice 
each year and is responsible for ensuring that the financial 
performance of the Group is properly reported and monitored, 
meeting with the Auditor, reviewing the reports from the 
Auditor relating to the financial statements and monitoring 
the internal control function.
The Remuneration Committee comprised Stephen Smith 
(Chairman), and Thomas Lander. The Remuneration 
Committee reviews the compensation policy and strategy 
for the Group as a whole and the scale and structure of the 
executive Directors’ remuneration packages including the 
terms of their service contracts. No Director takes part in the 
discussion of his own remuneration. This committee is also 
responsible for the grant of shares under the Group’s Long 
Term Incentive Plan.
The Nomination Committee comprised Peter Jensen 
(Chairman), Stephen Smith and Alejandro Weinstein during 
the year. The Committee held one meeting during the past 
financial year. The Nominations Committee’s principal purpose 
is to consider and proffer proposals for the composition 
and size of the Board and its Committees as well as Board 
refreshment and succession planning.
Full details of Directors’ remuneration and a statement of 
the Group’s remuneration policy are set out in the Directors’ 
Remuneration Report on pages 46 to 48.
Internal control
The Board has ultimate responsibility for the system of 
internal control maintained by the Group. The system is 
designed to manage rather than eliminate risk. It can provide 
only reasonable and not absolute assurance against material 
misstatement or loss and includes the safeguarding of 
assets, the maintenance of proper accounting records, the 
reliability of financial information, compliance with appropriate 
legislation, regulation and best practice and the identification 
and management of business risk. The Group has an internal 
audit function, reporting directly to the Audit Committee, 
which carries out periodic reviews of the Group’s subsidiaries. 
The Group also has a budgeting and reporting system in 
place, with results compared to annual budgets and quarterly 
forecasts using variance analysis.
Shareholder relations
The Group maintains a policy of open dialogue with all 
shareholders to ensure that the objectives of the Group are 
understood. The Chief Executive Officer and the Finance 
Director make regular presentations to shareholders  and 
discuss any areas of concern and meet regularly with analysts 
and major shareholders to provide information about the 
Group. Press releases, general information on the Group, 
shareholder presentations and investor information are 
available to be accessed via the Group’s website, www.
allergytherapeutics.com.
Annual General Meeting
The notice convening and giving details of the Annual General 
Meeting of the Group accompanies this report.
Engagement of auditor for the supply of non-audit services
It is the Group’s policy that it will only engage the Group’s 
auditor to supply other professional services to the Group 
and its subsidiary undertakings if it is satisfied that all the 
usual conditions of engagement and benchmarks are met. 
Any agreement to purchase services costing more than 
£10,000 per engagement must have the prior approval of the 
Audit Committee.
In determining the policy, the Audit Committee has taken into 
account relevant ethical guidance regarding the provision of 
non-audit services by the external audit firm and does not 
agree to the auditor providing a service if, having regard to the 
ethical guidance, the result is that the external auditor audits its 
own work, the external auditor makes management decisions 
for the Group, a mutuality of interest is created or the external 
auditor is put in the role of advocate for the Group.
Research and development
The Group will continue its policy of investment in research 
and development, with the focus being in Germany where 
major allergy vaccines, if not already registered, require 
further clinical evidence. In accordance with International 
Financial Reporting Standards (IFRS), during the year the 
Group expensed to the income statement £2.5m (2012: 
£2.1m) on research and development. Further details on the 
Group’s research and development are included in the Chief 
Executive’s Review on pages 8 to 11 .
Going concern
The Group’s business activities, together with the factors 
likely to affect its future development, performance and 
position are set out in the Chairman’s Statement on pages 
4 to 6, the Chief Executive Officer’s Review on pages 8 to 
11 and the Financial Review on pages 24 to 28. The financial 
position of the Group, its cash flows, liquidity position 
and borrowing facilities are also described in the Finance 
Director’s Financial Review on pages 24 to 28. 44 © Allergy Therapeutics plc www.allergytherapeutics.com
In addition, Note 23 to the financial statements includes the 
Group’s objectives, policies and processes for managing its 
capital, its financial risk management objectives, details of its 
financial instruments and its exposures to foreign currency 
risk, interest rate risk and liquidity risk.
After making appropriate enquiries, which included a review 
of the annual budget, considering the cash flow requirements 
for the foreseeable future, noting the new bank facility, 
and the effects of sales and foreign exchange sensitivities 
on the Group’s funding plans, the Directors continue to 
believe that the Group will have adequate resources to 
continue in operational existence for the foreseeable future 
and accordingly have applied the going concern principle in 
drawing up the financial statements. In reaching this view, 
the Directors have considered and prioritised the actions 
that could be taken to offset the impact of any shortfall in 
operating performance.
Market value of land and buildings
All freehold properties are stated at market value. The Group’s 
policy is that a full revaluation is carried out every five years 
with an interim valuation carried out in the third year after 
each full valuation. In the intervening years the directors 
review the carrying values of the freehold land and buildings 
to ensure that there have been no material variations.
Creditors’ payment policy and practice
The Group agrees payment terms with suppliers when it 
enters into contracts for the purchase of goods or services 
and generally seeks to abide by those terms when it is 
satisfied that the supplier has provided the goods or services 
in accordance with the agreed terms and conditions. Whilst 
the Company had no trade creditors, the number of trade 
creditor days for the Group at 30 June 2013 was 55 days 
(2012: 42 days).
Dividend
Given the amount invested in research and development in 
the prior years the Group has negative distributable reserves 
and is unable to declare a dividend.
Charitable and political contributions
The Group made no political or charitable contributions during 
the year.
Statement of Directors’ responsibilities – Group 
Financial Statements
The Directors are responsible for preparing the Annual Report 
and the financial statements in accordance with applicable 
law and regulations.
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the 
directors have to prepare the financial statements in 
accordance with International Financial Reporting Standards 
(IFRS) as adopted by the European Union. Under company 
law the directors must not approve the financial statements 
unless they are satisfied that they give a true and fair view 
of the state of affairs and profit or loss of the Group for that 
period. In preparing these financial statements, the directors 
are required to:
• Select suitable accounting policies and then apply   
them consistently;
• Make judgments and accounting estimates that are 
reasonable and prudent;
• State whether applicable IFRSs have been followed,  
subject to any material departures disclosed and  
explained in the financial statements;
• Prepare the financial statements on the going  
concern basis unless it is inappropriate to presume  
that the Group will continue in business. 
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Group’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the Group and enable them to ensure 
that the financial statements comply with the Companies Act. 
They are also responsible for safeguarding the assets of the 
Group and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
The Directors confirm that in so far as each Director is aware:
• there is no relevant audit information of which the 
Group’s auditor is unaware; and
• the Directors have taken all the steps that they ought 
to have taken as Directors in order to make themselves 
aware of any relevant audit information and to establish 
that the auditor are aware of that information.  © Allergy Therapeutics plc www.allergytherapeutics.com 45
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Group’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.
Statement of Directors’ responsibilities – Company 
Financial Statements
The Directors are responsible for preparing the Annual Report 
and the financial statements in accordance with applicable 
law and regulations.
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the directors 
have elected to prepare the financial statements in accordance 
with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable laws). 
Under company law the directors must not approve the 
financial statements unless they are satisfied that they give 
a true and fair view of the state of affairs and profit or loss 
of the Company for that period. In preparing these financial 
statements, the directors are required to:
• Select suitable accounting policies and then apply them 
consistently;
• Make judgments and accounting estimates that are 
reasonable and prudent;
• State whether applicable UK Accounting Standards 
have been followed, subject to any material departures 
disclosed and explained in the financial statements;
• Prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Company will continue in business. 
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the Company’s transactions and disclose with reasonable 
accuracy at any time the financial position of the Company 
and enable them to ensure that the financial statements 
comply with the Companies Act 2006. They are also 
responsible for safeguarding the assets of the Company and 
hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
The Directors confirm that in so far as each Director is aware:
• There is no relevant audit information of which the 
Company’s auditors are unaware; and
• The Directors have taken all the steps that they ought 
to have taken as Directors in order to make themselves 
aware of any relevant audit information and to establish 
that the auditor are aware of that information. 
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.
Auditor
Grant Thornton UK LLP offer themselves for reappointment as 
Auditor in accordance with section 489 of the Companies Act 
2006. A resolution for their reappointment is to be proposed 
at the forthcoming Annual General Meeting.
By order of the Board on 13 September 2013
Ian Postlethwaite 
Company Secretary 46 © Allergy Therapeutics plc www.allergytherapeutics.com
The Remuneration Committee
The Remuneration Committee comprised Stephen Smith 
(Chairman) and Thomas Lander during the financial year.  
The principal purpose of the Committee is to determine and 
agree the directors’ salary increases, annual bonuses, scope 
of pension arrangements and any changes in benefits. 
In addition, the Committee also agrees the share-related 
compensation for the Directors and other executive 
management and other executive compensation matters. 
Members Member since Attendance at meetings 2012-2013
Stephen Smith November 2004 4/4
Thomas Lander May 2012 4/4
Remuneration policy
The Committee’s policy is to set remuneration packages for 
Executive Directors that are competitive with the market, 
allowing the Group to attract, motivate and retain executives 
of the highest calibre. Remuneration packages are designed 
to reward executives for performance via annual bonus 
payments and awards of share-related compensation, which 
together constitute a potentially significant proportion of the 
total remuneration opportunity.
The remuneration of Executive Directors comprises the 
following elements:
(i) Basic salary
Basic salary is reviewed annually as at 1 October, taking into 
account personal performance, and benchmarked against a 
comparator group.
(ii) T axable benefits
Taxable benefits represent the provision of a car allowance 
and private medical insurance.
(iii) Share options
No share options were granted in the year. The share options 
granted to individual Executive Directors to date are disclosed 
later in this report and comprise grants made in prior years 
under previous approved and unapproved option schemes. 
Share options previously granted by Allergy Therapeutics 
(Holdings) Limited were surrendered on 5 October 2004 for 
share options in Allergy Therapeutics plc, on substantially the 
same terms.
(iv) Long T erm Incentive Plan
During the year ended 30 June 2013 provisional shares 
were awarded to directors and senior management under the 
Allergy Therapeutics plc 2005 Long T erm Incentive Plan and the 
2013 Long Term Incentive Plan. The major shareholders were 
consulted on the new plan which was approved by the Board 
on 20 March 2013. The new plan is aligned with the Group’s 
performance rather than on the performance compared to a 
group of other companies. The distribution of shares under 
the Plans is conditional on the Group’s performance over the 
3-year Plan cycle. The number of provisional shares awarded to 
Executive Directors under the Plan is shown in the Directors’ 
share option table.
(v) Bonus
In the case of the executive team, the Group operates a 
performance-related cash bonus based upon individual 
performance and achievement of personal and corporate 
objectives. Annual bonus payments are capped under service 
contracts at 40% for Manuel Llobet and 30% for other 
Executive Directors. The bonus is determined and agreed by 
the Remuneration Committee in September each year for the 
preceding financial year. 
 
(vi) Pension arrangements
The UK Company operates a defined-contribution Personal 
Pension scheme and currently makes pension contributions 
equal to 10% of salary for Executive Directors, with the 
exception of Manuel Llobet for whom the Group contributes 
15% of salary.
Directors’ Remuneration Report © Allergy Therapeutics plc www.allergytherapeutics.com 47
Service contracts
Executive Directors Date of contract Date of Amendment Notice period
Manuel Llobet 11 June 2009 21 June 2012 12 months
Ian Postlethwaite 7 May 2002 - 12 months
Non-Executive Directors Date of contract Date of Amendment Notice period
Peter Jensen 1 October 2010 30 June 2012 6 months
Thomas Lander 2 May 2012 25 June 2013 3 months
Stephen Smith                                                                      5 October 2004 1 April 2012 3 months
Alejandro Weinstein 1 July 2009 - 3 months
Thomas Lander’s Deed of Appointment was altered on 
25 June 2013 to add a clause regarding fees payable for 
additional work in exceptional circumstances above his 
contractual two days per month.
Directors’ remuneration (audited information)
Details of remuneration of those who served as directors 
during the year are set out below.
Basic
Salary
Bonus
for the 
year
 
T axable
benefits
Year ended 30 June 2012
Fees T otal Pension Total Pension
£ £ £ £ £ £ £ £
Manuel Llobet 199,109 18,857 10,909 - 228,875 29,872 253,546 27 ,690
Ian Postlethwaite
2
156,734 (16,080) 10,625 - 151,279 44,821 202,484 15,254
Peter Jensen 65,000 - - - 65,000 - 65,000 -
Thomas Lander 36,000 - - - 36,000 - 6,000 -
Stephen Smith
1
- - - 46,000 46,000 - 36,000 -
Alejandro Weinstein 36,000 - - - 36,000 - 36,000 -
T otals 492,843 2,777 21,534 46,000 563,154 74,693 599,030 42,944
1 
Mr Smith’s fees are paid to SRS Business Enterprises Limited.
2
 Mr Postlethwaite received an extra pension contribution in lieu of 
his accrued bonus from the prior year. 48 © Allergy Therapeutics plc www.allergytherapeutics.com
Directors’ share options and LTIPs
Options 
held at 
1 July 2012
Options 
granted in 
the year
Options 
exercised in 
the year
Options 
lapsed in 
the year
Options 
held at 30 
June 2013
Subscription
price
(pence)
Exercise
date from
Expiry
date
Executive Directors
Manuel Llobet 2,190,000
1
1,625,000
1
- (750,000) 3,065,000 - - -
Ian Postlethwaite 1,500,000 - (1,500,000) - - 5.0 17/12/2002 17/12/2012
163,500 - - - 163,500 18.5 18/10/2009 18/10/2019
1,320,000
1
812,500
1
- (600,000) 1,532,500 - - -
Non-Executive Directors
Stephen Smith 150,000 - - - 150,000 45.0 26/02/2004 26/02/2014
Totals 5,323,500 2,437 ,500 (1,500,000) (1,350,000) 4,911,000
1
Long Term Incentive Plan
The aggregate amount of gains made by Directors upon the 
exercise of share options in the year ended 30 June 2013 was 
£112,500 (2012: £nil).
At 30 June 2013 the London Stock Exchange market value of 
shares was 9.88p per share. The range of values during the 
period from 1 July 2012 to 30 June 2013 was 7 .5p to 13.75p 
per share.
Stephen Smith
Chairman, Remuneration Committee © Allergy Therapeutics plc www.allergytherapeutics.com 49
The Nominations Committee during the year comprised Peter 
Jensen (Chairman), Stephen Smith and Alejandro Weinstein. 
The Nominations Committee was established in September 
2009 and held once during the past financial year. Its 
principal purpose is to consider and proffer proposals for the 
composition and size of the Board and its Committees as well 
as Board refreshment and succession planning.
Members Member since Attendance at meetings 2012-13
Peter Jensen October 2010 1/1
Stephen Smith September 2009 1/1
Alejandro Weinstein September 2009 1/1
When proposing appointments of directors, the Committee 
considers the skills, knowledge and experience that a 
candidate possesses compared to the skill sets and experience 
of the Board as it currently stands. Selection of candidates also 
takes into consideration the breadth of knowledge that the 
Board has and that it may require to provide a well-balanced 
environment which encourages scrutiny and appropriate 
challenge of the Executive management.
The Group considers the independence of non-executive 
directors of paramount importance, being a cornerstone 
of good corporate governance; as a result the Committee 
periodically reviews the independence of its Non-Executive 
Directors. Its review is based on independence defined in 
the UK Corporate Governance Code against the practicalities 
for an AIM Company. The Group follows the UK Corporate 
Governance Code wherever practical to do so, but the code is 
not binding on AIM listed companies.
Nominations Committee Report
The review considered all the Non-Executive Directors and 
in particular Mr Stephen Smith’s position; his independence 
was discussed regarding his share options granted in 2004, as 
detailed on page 48, and his term of office, this being slightly 
over 9 years at the Company’s forthcoming Annual General 
Meeting in November, both being contrary to the UK Corporate 
Governance Code. The Committee judged that his contribution 
in the capacity as Chairman of the Audit Committee, and his 
experience, integrity and strength of character outweigh any 
potential conflict of interest that might arise from these to 
impede his independence and accordingly recommended 
this to the Board who endorsed his continued appointment. 
Mr Stephen Smith is therefore regarded as an independent 
Non-Executive Director, with Mr Thomas Lander as the other 
independent Non-Executive Director. 
The Board now consists of four Non-Executive Directors, with 
three being independent and two Executive Directors.
Peter Jensen
Chairman, Nominations Committee 50 © Allergy Therapeutics plc www.allergytherapeutics.com
We have audited the Group financial statements of 
Allergy Therapeutics plc for the year ended 30 June 2013 
which comprise the consolidated income statement, the 
consolidated statement of comprehensive income, the 
consolidated balance sheet, the consolidated statement of 
changes in equity, the consolidated cash flow statement 
and the related notes.   The financial reporting framework 
that has been applied in their preparation is applicable law 
and International Financial Reporting Standards (IFRSs) as 
adopted by the European Union.
This report is made solely to the Company’s members, 
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken 
so that we might state to the Company’s members those 
matters we are required to state to them in an auditor’s report 
and for no other purpose. To the fullest extent permitted by 
law, we do not accept or assume responsibility to anyone 
other than the Company and the Company’s members as a 
body, for our audit work, for this report, or for the opinions we 
have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities 
Statement set out on pages 44 to 45, the Directors are 
responsible for the preparation of the Group financial 
statements and for being satisfied that they give a true and fair 
view. Our responsibility is to audit and express an opinion on 
the Group financial statements in accordance with applicable 
law and International Standards on Auditing (UK and Ireland). 
Those standards require us to comply with the Auditing 
Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements 
is provided on the APB’s website at 
www.frc.org.uk/apb/scope/private.cfm
Opinion on financial statements
In our opinion the Group financial statements:
• Give a true and fair view of the state of the Group’s 
affairs as at 30 June 2013 and of its profit  for the year 
then ended; 
• Have been properly prepared in accordance with IFRSs 
as adopted by the European Union; and
• Have been prepared in accordance with the 
requirements of the Companies Act 2006. 
Independent Auditor’s Report to the Members of Allergy Therapeutics plc (Group)
Opinion on other matter prescribed by the Companies 
Act 2006
In our opinion the information given in the Directors’ Report for 
the financial year for which the Group financial statements are 
prepared is consistent with the Group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to 
you if, in our opinion:
• Certain disclosures of Directors’ remuneration specified 
by law are not made; or
• We have not received all the information and 
explanations we require for our audit.
Other matter
We have reported separately on the parent company financial 
statements of Allergy Therapeutics plc for the year ended 
30 June 2013.
Christian Heeger
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Gatwick
13 September 2013 © Allergy Therapeutics plc www.allergytherapeutics.com 51
for the year ended 30 June 2013 Year to 30 June Y ear to 30 June Year to 30 June Year to 30 June
2013 2013 2012 2012
Note £’000 £’000 £’000 £’000
Revenue 3 39,279 41,280
Cost of sales (11,953) (13,670)
Gross profit 27 ,326 27 ,610
Distribution costs (16,278) (17 ,881)
Administration expenses – other (7 ,845) (6,542)
Research and development costs (2,535) (2,095)
Administration expenses (10,380) (8,637)
Operating profit 668 1,092
Finance income 9   19      5
Finance expense 8 (255)  (457)
Profit before tax 5 432  640
Income tax 10 104    183
Profit for the period 536  823
Profit/ Earnings per share 12
Basic (pence per share) 0.13p 0.25p
Diluted (pence per share) 0.13p 0.24p
 for the year ended 30 June 2013
Y ear to 30 June Year to 30 June
2013 2012
Note £’000 £’000
Profit for the period 536 823
Items that will not be reclassified 
subsequently to profit or loss:
Actuarial loss on defined 
benefit pension scheme
25 (865) (734)
Revaluation gains - 
freehold land & buildings
17 -
Items that will be reclassified 
subsequently to profit or loss:
Exchange differences on 
translation of foreign operations
77 (431)
Revaluation (losses)/gains on 
investments – retirement benefit assets
(17) 50
T otal comprehensive loss (252)     (292)
Consolidated Income Statement
Consolidated Statement of Comprehensive Income 52 © Allergy Therapeutics plc www.allergytherapeutics.com
 30 June 2013 30 June 2012
Note £’000 £’000
Assets
Non-current assets
Property, plant and equipment 15 7 ,337 7 ,555
Intangible assets – goodwill 13 2,560 2,489
Intangible assets – other 14 1,350 2,107
Investments – retirement benefit asset 16 3,059 2,569
Deferred taxation asset 11 200       -
Total non-current assets 14,506 14,720
Current assets
Trade and other receivables 18 7 ,185 4,997
Inventories 17 6,014 6,651
Cash and cash in hand 19 1,257 903
Derivative financial instruments 23 2 483
Total current assets 14,458 13,034
T otal assets 28,964 27 ,754
Liabilities
Current liabilities
Trade and other payables 20 (7 ,006) (6,312)
Current borrowings 21 (288) (1,426)
Derivative financial instruments 23 (326) (9)
Total current liabilities (7 ,620) (7 ,747)
Net current assets 6,838 5,287
Non current liabilities
Retirement benefit obligations 25 (6,214) (4,717)
Non current borrowings 21 - (97)
Derivative financial instruments 23 - (162)
Deferred taxation liability 11 (159) (165)
Non current provisions 22 (300) (274)
Total non current liabilities (6,673) (5,415)
T otal liabilities (14,293) (13,162)
Net assets 14,671 14,592
Equity
Capital and reserves
Issued share capital 26 420 417
Share premium 67 ,716 67 ,571
Merger reserve – shares issued by subsidiary 40,128 40,128
Reserve – shares held by EBT 67 67
Reserve – share based payments 679 1,496
Reserve – convertible loan notes 3,652 3,652
Revaluation reserve 1,297 1,297
Foreign exchange reserve 170 93
Retained earnings (99,458) (100,129)
T otal equity      14,671 14,592
These financial statements were approved by the Board of Directors 
on 13 September 2013 and were signed on its behalf by
Manuel Llobet  Ian Postlethwaite
Chief Executive Officer Finance Director
Consolidated Balance Sheet
Registered number: 05141592 © Allergy Therapeutics plc www.allergytherapeutics.com 53
Issued 
Capital
Share 
premium
Merger
 reserve – 
shares 
issued by 
subsidiary
Reserve – 
 shares 
held in 
EBT
Reserve – 
share 
based 
payment
Reserve – 
convertible 
loan note
Revaluation 
reserve
Foreign 
exchange 
reserve
Retained 
earnings
T ot al      
equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2011 321 58,705 40,128 67 1,398 - 1,287 524 (100,291) 2,139
Exchange differences on 
translation of foreign operations
(431) (431)
Actuarial  loss       (734) (734)
Valuation gains taken to equity 
(Investments)
 50 50
Total other comprehensive 
income
50 (431) (734) (1,115)
Profit for the period after tax 823 823
Total comprehensive income 50 (431) 89 (292)
Transactions with owners
Share based payments 131 131
Shares issued 96 8,866 3,652 12,614
Transfer of lapsed options to 
retained earnings
(33)            33 -
Transfer of depreciation on 
revalued property
(40) 40 -
At 30 June 2012 417 67 ,571 40,128 67 1,496 3,652 1,297 93 (100,129) 14,592
Exchange differences on 
translation of foreign operations
77 77
Actuarial  loss (865) (865)
Valuation gain taken to equity 
(Land and Buildings)
17 17
Valuation loss taken to equity 
(Investments)
(17) (17)
Total other comprehensive 
income
- 77 (865) (788)
Profit for the period after tax 536 536
Total comprehensive income - 77 (329) (252)
Transactions with owners
Share based payments 183 183
Shares issued 3 145 148
Transfer of lapsed options to 
retained earnings
(1,000) 1,000 -
At 30 June 2013 420 67 ,716 40,128 67 679 3,652 1,297 170 (99,458) 14,671
Consolidated Statement of Changes in Equity 54 © Allergy Therapeutics plc www.allergytherapeutics.com
Y ear to 30 June  2013 Year to 30 June 2012
Note £’000 £’000
Cash flows from operating activities
Profit before tax 432 640
Adjustments for:
Finance income 9 (19) (5)
Finance expense 8 255 1,456
Revaluation loss on loan 8 - (999)
Non cash movements on defined benefit pension plan 79 164
Depreciation and amortisation 14, 15 1,342 1,892
Charge for share based payments 183 131
Derivative financial instruments 787 (1,280)
Disposal of intangible assets and property, plant and equipment 607 8
(Increase)/decrease in trade and other receivables (2,164) 1,287
Decrease in inventories 767 272
Increase/(decrease) in trade and other payables 746 (642)
Net cash generated by operations 3,015 2,924
Interest paid (211) (51)
Income tax (paid)/ refunded (372) 7
Net cash generated by operating activities 2,432 2,880
Cash flows from investing activities
Interest received 19 5
Investments (355) (311)
Payments for intangible assets (157) (829)
Payments for property plant and equipment (664) (432)
Net cash used in investing activities (1,157) (1,567)
Cash flows from financing activities
Proceeds from issue of equity shares and convertible loan notes 148 12,614
Repayment of borrowings - (22,623)
Proceeds from borrowings - 7 ,680
Bank loan fees and interest paid - (406)
Net cash generated by/(used in) financing activities 148 (2,735)
Net increase/(decrease) in cash and cash equivalents 1,423 (1,422)
Effects of exchange rates on cash and cash equivalents 50 (35)
Cash and cash equivalents at the start of the period (409) 1,048
Cash and cash equivalents at the end of the period 1,064 (409)
Cash at bank and in hand 1,257 903
Bank overdraft (193) (1,312)
Cash and cash equivalents at the end of the period 1,064 (409)
Consolidated Cash Flow Statement © Allergy Therapeutics plc www.allergytherapeutics.com 55
1. Basis of Preparation
The Group’s financial statements have been prepared in 
accordance with International Financial Reporting Standards 
(IFRS) in issue as adopted by the European Union (‘EU’).
Allergy Therapeutics plc is the Group’s ultimate parent 
company. The Company is a limited liability company 
incorporated and domiciled in England. The address of Allergy 
Therapeutics plc’s registered office and its principal place of 
business is Dominion Way, Worthing, West Sussex and its 
shares are listed on the Alternative Investment Market (AIM).
The consolidated financial statements for the year ended 30 
June 2013 (including comparatives) have been prepared under 
the historical cost convention except for land and buildings 
and derivative financial instruments which have been 
measured at fair value. They were approved and authorised 
for issue by the Board of Directors on 13 September 2013.
New standards adopted 
There are no IFRS or IAS interpretations that are effective for 
the first time in this financial period that have had a material 
impact on the Group. 
Amendments to IAS 1 Presentation of Other 
Comprehensive Income (effective 1 July 2012)
This IAS amendment revises the way the statement 
of other comprehensive income should be presented 
requiring separate subtotals for those elements which may 
be ‘recycled’ (e.g. cash-flow hedging, foreign currency 
translation), and those elements that will not.
Standards, amendments and interpretations to existing 
standards that are not yet effective and have not 
been early adopted by the Group in the 30 June 2013 
financial statements
At the date of authorisation of these financial statements, 
certain new standards, amendments and interpretations 
to existing standards have been published but are not yet 
effective. Not all of these have yet been adopted by the EU. 
The Group has not adopted any of these pronouncements 
early. The new standards, amendments and interpretations 
that are expected to be relevant to the Group’s financial 
statements are as follows:
IFRS 9 Financial Instruments (effective 1 January 2015)
This IFRS replaces IAS39 and addresses the usefulness for 
users of financial statements by simplifying the classification 
and measurement requirements for financial instruments. 
Management are currently assessing the detailed impact on 
the Group’s financial statements. 
IFRS 10 Consolidated Financial Statements (effective 1 
January 2013)
This IFRS establishes principles for the presentation and 
preparation of consolidated financial statements when an 
entity controls one or more other entities.
IFRS 12 Disclosure of Interests in Other Entities (effective 
1 January 2013)
This IFRS looks at the disclosure of information that enables 
users of financial statements to evaluate the nature of, and 
risks associated with, its interests in other entities, and the 
effects of those interests on its financial position, financial 
performance and cash flows.
IFRS 13 Fair Value Measurement (effective 1 January 2013)
IFRS 13 seeks to increase consistency and comparability in 
fair value measurements and related disclosures through a 
‘fair value hierarchy’.
IAS 19 (Revised June 2011) Employee Benefits (effective 1 
January 2013)
IAS 19 reviews the treatment of employee benefits with a view 
to recognising the cost in the period in which the benefit is 
earned by the employee, rather than when it is paid or payable.
IAS 27 (Revised) Separate Financial Statements (effective 
1 January 2013)
IAS 27 is concerned with the preparation and presentation of 
consolidated financial statements for a group of entities under 
the control of a parent, and in accounting for investments in 
subsidiaries, jointly controlled entities and associates when 
an entity elects, or is required by local regulations, to present 
separate (non-consolidated) financial statements. 
Management anticipate that the above pronouncements 
will be adopted in the Group’s financial statements in line 
with the effective dates stated above. Management are 
currently assessing their detailed impact on the Group’s 
financial statements. 
Other new standards and Interpretations have been issued 
but are not expected to have a material impact on the Group’s 
financial statements.
Notes to the Financial Statements 56 © Allergy Therapeutics plc www.allergytherapeutics.com
Going concern
For the year ended 2013, and for the fourth year in 
succession, the Group has reported an operating profit and an 
operating cash inflow. Operating profit in the period was £0.7 
million (2012: £1 .1 million); operating cash inflow was £3.0 
million (2012: £2.9 million).
The Group has prepared detailed budgets, including cash 
flow projections, for the periods ending 30 June 2014 and 
30 June 2015. These projections include assumptions on 
the trading performance of the operating business and the 
continued availability of the existing overdraft facilities. After 
making appropriate enquiries, which included a review of the 
annual budget, by considering the cash flow requirements 
for the foreseeable future and the effects of sales and other 
sensitivities on the Company’s funding plans, the Directors 
continue to believe that the Group will have adequate 
resources to continue in operational existence for the 
foreseeable future and accordingly have applied the going 
concern principle in drawing up the financial statements. 
In reaching this view, the Directors have considered and 
prioritised the actions that could be taken to offset the impact 
of any shortfall in operating performance.
2.  Accounting Policies
The principal accounting policies adopted in the preparation of 
these financial statements are set out below. These policies 
have been consistently applied to all years presented unless 
otherwise stated.
Consolidation
The Group’s financial statements consolidate those of the 
parent company and all of its subsidiaries drawn up to 30 
June 2013. Subsidiaries are all entities over which the Group 
has the power to govern the financial and operating policies, 
generally accompanying a shareholding of over one half 
of the voting rights. The existence and effect of potential 
voting rights that are currently exercisable or convertible are 
considered when assessing whether the Group controls 
another entity. Subsidiaries are fully consolidated from the 
date on which control is transferred to the Group. They are 
deconsolidated on the date control ceases.
The Group uses the acquisition method of accounting for 
the acquisition of a subsidiary. The cost of an acquisition 
is measured by the fair value of the assets given, equity 
instruments issued and liabilities incurred or assumed at the 
date of exchange. Identifiable assets acquired and liabilities 
and contingent liabilities assumed in a business combination 
that meet the conditions for recognition under IFRS 3 Revised 
Business Combinations, are recognised at their fair values 
at the acquisition date. The excess of the cost of acquisition 
over the fair value of the Group’s share of the identifiable net 
assets acquired is recorded as goodwill. If the cost of the 
acquisition is less than the fair value of the net assets of the 
subsidiary acquired the difference is recognised directly in the 
profit or loss.
Inter-company transactions, balances and unrealised gains 
and losses on transactions between Group companies are 
eliminated except for unrealised losses if they show evidence 
of impairment.
Where necessary, adjustments are made to the financial 
statements of subsidiaries to bring accounting policies used 
into line with those used in the Group.
Goodwill
Goodwill arising from business combinations is the difference 
between the fair value of the consideration paid and the fair 
value of the assets and liabilities and contingent liabilities 
acquired. It is initially recognised as an intangible asset at 
cost and is subject to impairment testing on an annual basis 
or more frequently if circumstances indicate that the asset 
may have been impaired. Details of impairment testing are 
described in the accounting policies. 
Intangible assets acquired as part of 
a business combination
Intangible assets acquired in a business combination are 
identified and recognised separately from goodwill where 
they satisfy the definition of an intangible asset and their fair 
values can be measured reliably. The cost of such intangible 
assets is their fair value at the acquisition date.
Subsequent to initial recognition, intangible assets acquired in 
a business combination are reported at cost less accumulated 
amortisation and accumulated impairment losses. © Allergy Therapeutics plc www.allergytherapeutics.com 57
Internally generated intangible assets
An internally generated intangible asset arising from 
development (or the development phase) of an internal 
project is recognised if, and only if, all of the following have 
been demonstrated:
• The technical feasibility of completing the intangible 
asset so that it will be available for use or sale
• The intention to complete the intangible asset and use 
or sell it
• The ability to use or sell the intangible asset
• How the intangible asset will generate probable future 
economic benefits
• The availability of adequate technical, financial and other 
resources to complete the development and to use or 
sell the intangible asset
• The ability to measure reliably the expenditure 
attributable to the intangible asset during its 
development.
The amount initially recognised for internally generated 
intangible assets is the sum of the expenditure incurred from 
the date when the intangible asset first meets the recognition 
criteria listed above. Where no internally generated intangible 
asset can be recognised, research and development 
expenditure is charged to profit or loss in the period in which 
it is incurred.
Subsequent to initial recognition, internally generated 
intangible assets are reported at cost less accumulated 
amortisation and accumulated impairment losses. 
Amortisation shall begin when the asset is available for use, 
i.e. when it is in the location and condition necessary for it to be 
capable of operating in the manner intended by management. 
Amortisation of all intangible assets is calculated on a straight 
line basis over the useful economic life using the following 
annual rates:  
Manufacturing know-how 15 years
Non-competing know-how 4 years
Other intangibles
15 years/ 
period of contract
Computer software 7 years
These periods were selected to reflect the various assets’ 
useful economic lives to the Group.
The cost of amortising intangible assets is included within 
administration costs in the consolidated income statement.
Segmental reporting 
In identifying its operating segments, management follow the 
Group’s revenue lines which represent the main geographical 
markets within which the Group operates. These operating 
segments are managed separately as each requires different 
local expertise, regulatory knowledge and a specialised 
marketing approach. Each market based operating segment 
is engaged in production, marketing and selling within a 
particular economic environment that is different from that 
in segments operating in other economic environments. All 
inter-segment transfers are carried out at arm’s length prices.
The Group’s operating segments are market based and are 
reported in a manner consistent with the internal reporting 
provided to the Group’s Chief Operating Decision Maker 
(CODM) who has been identified as the Executive Directors. 
The CODM is responsible for allocating resources and 
assessing the performance of the operating segments.
Foreign currency translation
Functional and presentational currency
Items included in the financial statements of each of the 
Group’s entities are measured using the currency of the 
primary economic environment in which the entity operates 
(the functional currency). The Group’s presentational currency 
is Sterling, which is also the functional currency of the 
Group’s parent.
T ransactions and balances
Foreign currency transactions are translated into the functional 
currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from 
the settlement of such transactions and from the translation, at 
reporting period end exchange rates, of monetary assets and 
liabilities denominated in foreign currencies, are recognised in 
the profit and loss. Non-monetary items are carried at historical 
cost or translated using the exchange rate at the date of the 
transaction or an average rate as an approximation where this 
is not materially different.  58 © Allergy Therapeutics plc www.allergytherapeutics.com
Group companies
The results and financial position of all Group entities that have 
a functional currency different from the presentational currency 
are translated into the presentational currency as follows:
• Assets and liabilities for each balance sheet presented 
are translated at the closing rate at the date of the 
balance sheet with all resulting exchange differences 
being recognised in other comprehensive income and 
accumulated in a separate component of equity.
• Income and expenses for each income statement 
item are translated at exchange rates at the date 
of the transaction or using an average rate as an 
approximation where this is not materially different, 
with resulting exchange differences recognised in other 
comprehensive income and accumulated in a separate 
component of equity.
The Group has taken advantage of the exemption in 
IFRS 1 which allows all foreign exchange differences on 
consolidation to be set at zero at transition and the foreign 
exchange reserve therefore only shows post transition 
foreign exchange differences.
 
Revenue recognition
Revenue is measured by reference to the fair value of 
consideration received or receivable by the Group for goods 
supplied and services provided, net of statutory rebates 
paid in Germany and excluding value added tax.  Revenue is 
recognised upon the performance of services or transfer of 
risk to the customer. 
Sale of goods
Revenue from the sale of goods is recognised when all the 
following conditions have been satisfied:
• the Group has transferred to the buyer the significant 
risks and rewards of ownership of the goods, which is 
generally when the customer has physically received 
the goods.
• the Group retains neither continuing managerial 
involvement to the degree usually associated with 
ownership nor effective control over the goods sold 
which is again when the customer has physically 
received the goods.
• the amount of revenue can be measured reliably.
• it is probable that the economic benefits associated with 
the transaction will flow to the Group, and 
• the costs incurred or to be incurred in respect of the 
transaction can be measured reliably.
A small proportion of the Group’s overseas sales are made 
through licensees and distributors.
For all licensee arrangements, the licensee is invoiced at the 
time of delivery and title to the product passes upon full and 
final settlement of the invoice to which the delivery relates. 
The licensee has full discretion over the setting of the final 
selling price to the end customer and pays a fixed percentage 
of the final selling price back to the Group as ‘royalties’ as and 
when those sales are made. The licensee is responsible for all 
customer returns of product. 
It is considered that the significant risks and rewards of 
ownership of the product are transferred to the licensee at 
the point of delivery and therefore revenue is recognised at 
this point in accordance with IAS 18. Royalties are recognised 
on an accruals basis as the licensee books the sale to the end 
customer in accordance with IAS 18 paragraph 30 (b).
Where the Group sells to licensees at low margin and 
the royalty payment receivable actually represents the 
Group’s normal margin on the product sale, the “royalty” is 
considered to be deferred consideration and forms part of 
the fair valuation of consideration receivable by the Group for 
goods supplied. In these instances the expected royalty is 
accrued at a discounted value at the point of delivery.
For all distributor agreements, the distributor places orders 
with the Group, at which point goods are shipped to them. 
The Group however, holds title to these products until they 
are sold on to a third party with the distributor effectively 
acting as an agent. The selling price to the end user is set by 
the relevant Government body and the distributor receives a 
fixed percentage of this selling price. The distributor notifies 
the Group monthly on stock levels and this is reconciled to a  
statement which generates an invoice for payment by the 
distributor. The Group is responsible for any customer returns 
of product.
It is considered that the significant risks and rewards of 
ownership of the product are not transferred from the Group 
until the distributor has sold the product to a third party and 
therefore revenue on these sales is recognised at this point 
by the Group in accordance with IAS 18 appendix 2 (c).
Where the Group provides services to new distributors, 
which mainly include marketing and customer information, in 
exchange for an up-front lump sum fee, revenue is recognised 
in line with these services being delivered. These services are  © Allergy Therapeutics plc www.allergytherapeutics.com 59
fair valued and pro-rated to agree to the total fee receivable.  
Where there is an on-going responsibility to provide services 
in the future, the balance relating to those services is 
recognised in future periods as the service is performed.
Expenditure recognition
Operating expenses are recognised in the income statement 
upon utilisation of the service or at the date of their origin. 
Borrowing costs
Borrowing costs primarily comprise interest on the Group’s 
borrowings. Borrowing costs directly attributable to the 
acquisition, construction or production of a qualifying asset 
are capitalised during the period of time that is necessary to 
complete and prepare the asset for its intended use or sale. 
Other borrowing costs are expensed in the period in which 
they are incurred and reported in ‘finance costs’
Property, plant and equipment
The Group policy is that all freehold properties will be subject 
to a full revaluation at least every five years with an interim 
valuation carried out in accordance with IAS 16 in the third 
year after each valuation. 
Revaluations are performed by independent qualified and 
experienced valuers who have adequate local knowledge 
in the country in which the property is situated. In the 
intervening years between independent revaluations, the 
directors review the carrying values of the freehold land and 
buildings and adjustments are made if the carrying values 
differ significantly from their respective fair values. Increases 
in the carrying value from revaluations are recognised in other 
comprehensive income and accumulated in equity under 
the heading of revaluation reserve unless this reverses a 
revaluation decrease on some asset previously recognised 
in profit and loss, in which case it is first credited to profit 
and loss to that extent. When an item of property, plant and 
equipment is revalued, any accumulated depreciation at the 
date of the revaluation is restated proportionately with the 
change in the gross carrying amount of the asset. The amount 
of the adjustment arising on the restatement or elimination 
of accumulated depreciation forms part of the increase or 
decrease in carrying amount. Decreases in the carrying 
values arising from revaluations are first offset against 
increases from earlier revaluations in respect of the same 
assets and are thereafter charged to profit or loss.
Plant and equipment are stated at historical cost less 
accumulated depreciation and accumulated impairment losses. 
Provision for depreciation of all tangible assets of the Group 
(except land) is made over their estimated useful lives, on a 
straight line basis principally using the following annual rates:
Freehold buildings 33 years
Computer equipment 3 – 7 years
Motor vehicles 4 years
Fixtures and fittings 5 – 15 years
Plant and equipment 5 – 15 years
Asset residual values and useful lives are reviewed annually 
and amended as necessary. Assets are reviewed for 
impairment whenever events or changes in circumstances 
indicate that the carrying amount of the fixed asset may not 
be recoverable. An asset’s carrying amount is written down 
immediately to its recoverable amount if the asset’s carrying 
amount exceeds the higher of the asset’s fair value less costs 
to sell or value in use.
During the year the asset lives of ‘Fixtures and fittings’ and 
‘Plant and equipment’ were extended up to a maximum of 15 
years (previous maximum useful life was 10 years). The effect 
of this change is described in Note 15.
Depreciation charges are included when arriving at operating 
profit in the income statement.
Impairment
The Group’s goodwill, other intangible assets, freehold 
land and buildings and plant & equipment are subject to 
impairment testing.
For the purposes of assessing impairment, assets are 
grouped at the lowest levels for which there are separately 
identifiable cash flows (cash generating units). Goodwill is 
allocated to those cash generating units that are expected to 
benefit from synergies of the related business combination 
and represent the lowest level within the Group at which 
management controls the related cash flows. 
Individual assets or cash generating units that include 
goodwill with an indefinite useful life or those not yet 
available for use are tested for impairment at least annually. 
All other individual assets or cash generating units are tested 
for impairment whenever events or changes in circumstances 
indicate that the carrying amount may not be recoverable. 60 © Allergy Therapeutics plc www.allergytherapeutics.com
An impairment loss is recognised for the amount by which 
the assets or cash generating units carrying amount exceeds 
its recoverable amount. The recoverable amount is the higher 
of fair value, reflecting market conditions less costs to sell 
and value in use, based on an internal discounted cash flow 
evaluation. Impairment losses recognised for cash generating 
units, to which goodwill has been allocated, are credited 
initially to the carrying amount of goodwill. Any remaining 
impairment loss is charged pro rata to the other assets in 
the cash generating unit. With the exception of goodwill, all 
assets are subsequently reassessed for indications that an 
impairment loss previously recognised may no longer exist. 
Inventories
Inventory is carried at the lower of cost or net realisable 
value. The costs of raw materials, consumables, work in 
progress and finished goods are measured by means of 
weighted average cost using standard costing techniques. 
Cost of finished goods comprises direct production costs 
such as raw materials, consumables, utilities and labour, and 
production overheads such as employee costs, depreciation, 
maintenance and indirect factory costs. Standard costs are 
reviewed regularly in order to ensure relevant measures of 
utilisation, production lead time and appropriate levels of 
manufacturing expense are reflected in the standards.
Net realisable value is calculated based on the revenue from 
sale in the normal course of business less any costs to sell.
Leases
Operating lease rentals are charged to the income statement 
over the term of the lease. There are no finance leases.
Financial assets
Financial assets consist of cash, trade and other receivables 
and derivative financial instruments. Financial assets are 
assigned to their different categories by management on initial 
recognition, depending on the contractual arrangements.
Cash and cash equivalents comprise cash on hand, demand 
deposits and overdrafts, together with other short-term, 
highly liquid investments that are readily convertible into 
known amounts of cash and which are subject to an 
insignificant risk of changes in value.
All financial assets are recognised when the Group becomes 
a party to the contractual provisions of the instrument and 
loans and receivables are initially recognised at fair value, 
including transaction costs, with the exception of ‘fair value 
through profit and loss’ and subsequently at amortised 
cost, with any changes going through profit or loss. Where 
securities are designated as ‘fair value through profit and 
loss’ gains and losses arising from changes in fair value are 
included in net profit or loss for the period. 
Derecognition of financial assets occurs when the rights 
to receive cash flows from the investments expire or are 
transferred and substantially all of the risks and rewards 
of ownership have been transferred. An assessment for 
impairment is undertaken at least at each balance sheet date 
whether or not there is objective evidence that a financial 
asset or a group of financial assets is impaired.
Financial liabilities
The Group’s financial liabilities include bank loans, trade and 
other payables and derivative financial instruments. 
Financial liabilities are recognised when the Group becomes 
a party to the contractual agreements of the instrument. All 
interest related charges are recognised as an expense in 
‘Finance costs’ in the income statement.
Trade and other payables are recognised initially at their fair 
value and subsequently measured at amortised cost using 
the effective interest method.
Borrowings comprise secured bank borrowings, and are 
initially recognised at the fair value of the consideration 
received net of issue costs associated with the borrowings. 
After initial recognition, interest-bearing loans and borrowings 
are subsequently measured at amortised cost using the 
effective interest rate method.
Convertible loan notes
Convertible loan notes are regarded as compound 
instruments consisting of a liability component and an 
equity component. At the date of issue the fair value of the 
liability component is estimated using a discount rate for 
an equivalent liability without the conversion feature. The 
difference between the proceeds of issue of the convertible 
loan note and the fair value assigned to liability component, 
representing the embedded option to convert the liability into 
equity of the Group, is included in equity. © Allergy Therapeutics plc www.allergytherapeutics.com 61
Derivative financial instruments
The Group uses interest rate swaps, Canadian Dollar forward 
contracts, Euro forward contracts and Euro exchange 
swaps to manage the exposure to changes in interest and 
translation rates and these are classified as derivative financial 
instruments. All derivative financial instruments are initially 
measured at fair value on acquisition and are subsequently 
restated to fair value at each reporting date. Any change in 
the fair value of the instruments is recognised in profit and 
loss.
Equity
Equity comprises the following:
• “Issued capital” represents the nominal value of equity 
shares that have been issued.
• “Share premium” represents the excess over nominal 
value of the fair value of consideration received for 
equity shares, net of expenses of the share issue.
• “Merger reserve” represents the excess over nominal 
value of the fair value of consideration received for 
equity shares issued on acquisition of subsidiaries, net 
of expenses of the share issue. 
• “Reserve - Shares held in EBT” represents the 
shares acquired by a trust set up for the benefit of the 
Group’s employees. These shares are deducted from 
shareholders funds at the cost that the shares were 
acquired. The net proceeds received from the issue of 
these shares through the exercise of options are also 
recognised through this reserve. 
• “Reserve - share based payments” represents equity-
settled share-based employee remuneration until such 
share options are exercised.
• “Reserve - convertible loan notes” represents the equity 
component of consideration received for convertible loan 
notes, net of expenses.
• “Revaluation reserve” represents the revaluations of 
investment assets and land and buildings.
• “Foreign exchange reserve” represents the foreign 
currency translation differences that have occurred since 
the transition date. Exchange differences prior to this 
date are included within retained earnings.
• “Retained earnings” represents retained profits and 
losses.
Equity is any contract which evidences a residual interest in 
the assets of the Group after deducting all its liabilities. 
Income taxes
Current income tax assets and liabilities comprise those 
obligations to fiscal authorities in the countries in which the 
Group carries out its operations. They are calculated according 
to the tax rates and tax laws applicable to the fiscal period 
and the country to which they relate. All changes to current 
tax liabilities are recognised as a component of tax expense 
in the income statement.
Deferred income taxes are calculated using the liability 
method on temporary differences.  Deferred tax is generally 
provided on the difference between the carrying amounts of 
assets and liabilities and their tax bases.  However, deferred 
tax is neither provided on the initial recognition of goodwill 
nor on the initial recognition of an asset or liability unless the 
related transaction is a business combination or affects tax 
or accounting profit.  Deferred tax on temporary differences 
associated with shares in subsidiaries is not provided if 
reversal of these temporary differences can be controlled 
by the Group and it is probable that reversal will not occur 
in the foreseeable future.  In addition, tax losses available to 
be carried forward as well as other income tax credits to the 
Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no 
discounting.  Deferred tax assets are recognised to the extent 
that it is probable that the underlying deductible temporary 
differences will be able to be offset against future taxable 
income.  Current and deferred tax assets and liabilities are 
calculated at tax rates that are expected to apply to their 
respective period of realisation, provided they are enacted or 
substantively enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised 
as a component of tax expense in the income statement, 
except where they relate to items that are charged or 
credited directly to other comprehensive income (such as the 
revaluation of land and buildings) in which case the related 
deferred tax is also charged or credited directly to other 
comprehensive income.
Defined benefit pension scheme
Scheme assets are measured at fair values. Scheme liabilities 
are measured on an actuarial basis using the projected 
unit credit method and are discounted at appropriate high 
quality corporate bond rates that have terms to maturity 
approximating to the terms of the related liability. Appropriate 
adjustments are made for past service costs. Past service 
cost is recognised as an expense on a straight-line basis over  62 © Allergy Therapeutics plc www.allergytherapeutics.com
the average period until the benefits become vested. To the 
extent that benefits are already vested the Group recognises 
past service cost immediately.
Actuarial gains and losses are recognised immediately in 
other comprehensive income. The net surplus or deficit 
is presented with other net assets on the balance sheet.   
The related deferred tax is shown with other deferred tax 
balances. A surplus is recognised only to the extent that it is 
recoverable by the Group.
The current service cost, past service cost and costs 
from settlements and curtailments are charged against 
administrative expenses in the income statement.  Interest 
on the scheme liabilities and the expected return on scheme 
assets are included in other finance costs. 
Short-term employee benefits, including holiday entitlement 
are included in current pension and other employee 
obligations at the undiscounted amount that the Group 
expects to pay as a result of the unused entitlement.
Investments
Investments relate to long-term insurance policies. In 
accordance with IAS19 these cannot be directly deducted 
from the German pension obligation. These are recognised as 
a separate asset, rather than as a deduction in determining 
the defined benefit liability. They are held at fair value with 
any gains or losses on valuation charged or credited to other 
comprehensive income.
Provisions
Provisions are recognised when the present obligations 
arising from legal or constructive obligations resulting from 
past events, will probably lead to an outflow of economic 
resources from the Group which can be estimated reliably.
Provisions are measured at the present value of the 
estimated expenditure required to settle the present 
obligation, based on the most reliable evidence available at 
the balance sheet date.
All provisions are reviewed at each balance sheet date and 
adjusted to reflect the current best estimates.
Share based employee compensation
The Group operates equity-settled share based compensation 
plans for remuneration of its employees including Long Term 
Incentive Plan (LTIP) schemes.
All employee services received in exchange for the grant of 
any share based compensation are measured at their fair 
values. These are indirectly determined by reference to the 
share option or shares awarded. Their value is appraised at 
the grant date and excludes the impact of any non-market 
vesting conditions (e.g. profitability or sales growth targets). 
The fair value of LTIP shares, which have market conditions 
attached, includes an adjustment based on the probability of 
the shares vesting at the end of the vesting period. 
Details of the LTIP schemes and the conditions applying to 
each scheme are fully disclosed in Note 27 (Share Based 
Payments) on pages 89 to 91 .
All share based compensation is ultimately recognised as 
an expense in the consolidated income statement with a 
corresponding credit to the share based payments reserve, 
net of deferred tax where applicable. If vesting periods or 
other vesting conditions apply, the expense is allocated over 
the vesting period, based on the best available estimate of 
the number of share options expected to vest. Non market 
vesting conditions are included in assumptions about the 
number of options that are expected to become exercisable. 
Estimates are subsequently revised if there is any indication 
that the number of share options expected to vest differs 
from previous estimates. No adjustment to expense 
recognised in prior periods is made if fewer share options 
ultimately are exercised than estimated.
Upon exercise of share options, the proceeds received, net of 
any directly attributable transaction costs, up to the nominal 
value of the shares issued are allocated to share capital with 
any excess being recorded as share premium.
Employee benefit trust
The financial statements include the assets and liabilities of a 
trust set up for the benefit of the Group’s employees. 
The employee benefit trust has acquired shares in the 
Company and these are deducted from the shareholders’ 
funds on the balance sheet at the cost of acquisition less 
proceeds on disposal. © Allergy Therapeutics plc www.allergytherapeutics.com 63
Use of accounting estimates and judgements
Many of the amounts included in the financial statements 
involve the use of judgement and/or estimation. These 
judgements and estimates are based on management’s best 
knowledge of the relevant facts and circumstances, having 
regard to prior experience, but actual results may differ from 
the amounts included in the financial statements. Information 
about such judgements and estimation is contained in 
the accounting policies and/or the notes to the financial 
statements and the key areas are summarised below:
Judgements in applying accounting policies
a) Capitalisation of development costs requires analysis 
 of the technical feasibility and commercial viability 
 of the project concerned. Capitalisation of the costs 
 will be made only where there is evidence that 
 an economic benefit will accrue to the Group. To date 
 no development costs have been capitalised and 
 all costs have been expensed in the Income 
 statement as research and development expenditure, 
 £2.5m (2012: £2.1m)
b) The Directors assume that the loan note will be 
 repayable in April 2014 rather than any earlier date 
 nominated by the note holder. Repayment of 
 the principal has been treated as not substantive as 
 the repayment of principal and reinvestment in equity 
 are viewed as occurring at the same time in 
 contemplation of one another.
c) As part of setting up a new distributor in a particular 
 territory, the Group received a payment of £1 .25m in 
 exchange for services rendered. These services 
 have been fair valued and the total fee apportioned 
 across the services in proportion to these valuations. 
 Of this value £0.47m has been matched to a 
 related payable and recognised in full; £0.51m 
 valuation has been supported by an independent 
 valuer; and the remaining £0.27m has been 
 apportioned by management. Of the £1 .25m, £0.27m 
 is judged to relate to services to be performed in 
 future periods and has been carried forward in 
 deferred revenue.
Sources of estimation uncertainty
a) Depreciation rates are based on estimates of the 
 useful lives and residual values of the assets 
 involved. There is inherent uncertainty in the useful 
 lives of assets, which means that they are constantly 
 reviewed by management (Accounting policies note 
 (page 59) and Note 15).
b) Estimates of future profitability are required for the 
 decision whether or not to create a deferred tax 
 asset. A deferred tax asset of £0.2m has been 
 recognised in this period (Note 11). 
c) Determining whether goodwill is impaired requires 
 an estimation of the value in use of the cash 
 generating unit to which the goodwill has been 
 allocated. This value in use calculation requires an 
 estimation of the future cash flows expected to arise 
 from the cash generating unit and a suitable discount 
 rate in order to calculate the present value.
d) The Group has been awarded a provisional exemption 
 to the increased rebate charge in Germany for the 
 period July to December 2012. Revenue of £1 .1m has 
 been accrued in relation to this exemption. While 
 the Group is confident that the exemption will be 
 confirmed, there is a possibility that this will not happen.
3. Revenue
An analysis of revenue by category is set out in the table below:
2013 2012
£’000 £’000
Sale of goods 38,467 40,317
Royalties - 963
Rendering of services 812 -
39,279 41,280
As noted in the accounting policy for revenue recognition for 
sale of goods, royalties that are deemed to part of the fair 
valuation of supply of goods are included in sale of goods.
Rendering of services relates to the supply of services to 
a new distributor to assist them in setting up operations in 
their territory. 64 © Allergy Therapeutics plc www.allergytherapeutics.com
4.  Segmental Reporting
The Group’s operating segments are reported based on the financial information provided to the Executive Directors, who are 
defined as the Chief Operating Decision-Maker (CODM), to enable them to allocate resources and make strategic decisions. 
The CODM reviews information based on geographical market sectors and assesses performance at an EBITDA (operating profit 
before interest, tax, depreciation and amortisation) and operating profit level. Management have identified that the reportable 
segments are Central Europe (which includes the following operating segments; Germany, Austria, Switzerland and the 
Netherlands), Southern Europe (Italy and Spain), the UK (including Latin America) and Other.
Revenue by segment
Revenue 
from External 
Customers
Inter 
Segment 
Revenue
T otal 
Segment 
Revenue
Revenue 
from External 
Customers
Inter
Segment 
Revenue
Total
Segment 
Revenue
2013 2013 2013 2012 2012 2012
£’000 £’000 £’000 £’000 £’000 £’000
Central Europe
Germany 23,613 23,613 25,407 25,407
Other 5,143 5,143 5,617 5,617
28,756 28,756 31,024 31,024
Southern Europe 5,774 5,774 6,180 6,180
UK 881 32,081 32,962 1,509 33,861 35,370
Other 3,868 3,868 2,567 2,567
39,279 32,081 71,360 41,280 33,861 75,141
Revenues from external customers in all segments are derived principally from the sale of a range of pharmaceutical products 
designed for the immunological treatment of the allergic condition.
Other revenues include licensee and distributor sales and royalties through several markets including Czech and Slovak Republics, 
Canada and South Korea.
Inter-segment revenues represent sales of product from the UK to the operating subsidiaries. The price is set on an arms-length basis 
which is eliminated on consolidation © Allergy Therapeutics plc www.allergytherapeutics.com 65
The CODM also reviews revenue by segment on a constant currency basis to provide relevant year on year comparisons.
The following revenue table is based on a constant currency rate of € 1 .20: £1 .00 which was the rate used in the 2013 budget.
Revenue from
External Customers
Revenue from
External Customers
2013 2012
£’000 £’000
Central Europe
Germany 24,442 24,331
Other 5,157 5,180
29,599 29,511
Southern Europe 5,977 5,814
UK 881 1,509
Other 3,866 2,686
40,323 39,520
The Group has no customers which individually account for more than 10% of the Group’s revenue.
Depreciation and amortisation by segment
2013 2012
£’000 £’000
Central Europe 199 119
Southern Europe 86 89
UK 1,057 1,684
1,342 1,892 66 © Allergy Therapeutics plc www.allergytherapeutics.com
EBITDA by segment
2013 2012
Allocated EBITDA
£’000 £’000
Central Europe (791) (1,029)
Southern Europe (323) 372
UK 3,124 3,641
Allocated EBITDA 2,010 2,984
Depreciation and amortisation (1,342) (1,892)
Operating profit 668 1,092
Finance income 19 5
Finance expense (255) (457)
Profit before tax 432 640
T otal assets by segment
2013 2012
£’000 £’000
Central Europe 9,306 8,386
Southern Europe 4,117 3,963
UK 37 ,038 35,220
50,461 47 ,569
Inter-segment assets (3,126) (1,958)
Inter-segment investments (18,371) (17 ,857)
T otal assets per Balance Sheet 28,964 27 ,754
Included within Central Europe are non-current assets to the value of £2,560,000 relating to Goodwill and within Southern Europe 
assets to the value of £1,207 ,000 relating to freehold land and buildings. © Allergy Therapeutics plc www.allergytherapeutics.com 67
T otal liabilities by segment
2013 2012
£’000 £’000
Central Europe (10,070) (8,227)
Southern Europe (2,518) (2,150)
UK (4,831) (4,743)
(17 ,419) (15,120)
Inter-segment liabilities 3,126 1,958
T otal liabilities per Balance Sheet (14,293) (13,162)
5. Profit Before T ax
2013 2012
Profit for the period has been arrived at after charging: £’000 £’000
Foreign exchange loss 350 808
Depreciation and amortisation:
Depreciation of property plant and equipment (note 15 ) 968 1,506
Amortisation of intangible assets (note 14 ) 374 386
Research and development 2,535 2,095
Land and buildings held under operating leases 422 439
Other operating leases 521 533
Audit and non-audit services:
Fees payable to the Company’s auditor for the audit of the Group accounts 22 21
Fees payable to the Company’s auditor and its associates for other services:
The audit of the Company’s subsidiaries pursuant to legislation 69 67
Tax services 20 9
Other services pursuant to legislation 23 99
Share based payment expense (note 27 ) 183 131 68 © Allergy Therapeutics plc www.allergytherapeutics.com
6. Remuneration of Key Management Personnel
2013 2012
£’000 £’000
Salaries and short-term employee benefits 597 677
Social security costs 66 70
Post employment benefits – defined 
contribution plans
75 43
738 790
Under/ (Over) accrual of bonuses (35) (6)
Share based payment 29 58
732 842
Key management personnel are considered to be the Directors and full details of their remuneration are set out in the audited 
information included in the Director’s Remuneration Report on pages 46 to 48 and forms part of the financial statements.
7 .  Employees (including Directors)
2013 2012
£’000 £’000
Wages and salaries 14,292 15,423
Social security costs 2,110 2,366
Share based payments 158 131
Pension costs – defined benefit plans 243 240
Pension costs – defined contribution plans 267 234
17 ,070 18,394
The average number of employees during the period (including executive directors) was made up as follows:
2013 2012
R & D, marketing and administration 113 120
Sales 91 87
Production 147 151
351 358 © Allergy Therapeutics plc www.allergytherapeutics.com 69
8. Finance Expense
2013 2012
£’000 £’000
Interest on borrowing facility 167 1,368
Change in fair value of derivative financial instrument (149) (214)
Employee defined benefit scheme interest expense 193 212
Other interest and charges 44 90
255 1,456
Retranslation profit on Euro denominated borrowing facilities - (999)
255 457
The retranslation profit represents the translation difference on the Group’s Euro based borrowing facility caused by the movement 
of the Euro against Sterling throughout the previous year. The borrowing facility was repaid in April 2012.
9. Finance Income
2013 2012
£’000 £’000
Bank interest 19 5
10. Income T ax Expense
2013 2012
£’000 £’000
Current T ax:
Prior period tax (57) (440)
Overseas tax 166 270
109 (170)
Deferred tax – current year (213) (13)
Tax credit for the period (104) (183) 70 © Allergy Therapeutics plc www.allergytherapeutics.com
The tax credit assessed for the period is higher than the standard rate of corporation tax as applied in the respective trading domains 
where the Group operates. The differences are explained below:
2013 2012
£’000 £’000
Profit for the period before tax 432 640
Profit for period multiplied by the respective standard rate of corporation tax 
applicable in each domain (average 23.75%, 2012: 25.5%).
103 163
Effects of: 
Disallowable adjustments 429 125
Capital allowances in excess of depreciation (34) 74
Other temporary differences on property plant and equipment, adjustments and 
movements
20 14
Tax losses utilised (479) (263)
Allowances for R&D expenditure (48) (46)
Tax losses not utilised 216 312
Adjustment of taxes for prior periods (57) 213
Adjustment for different tax rates (14) (108)
R&D tax credit received in the period - (654)
Relief for shares acquired by employees and Directors (27) -
109 (170)
Deferred tax release (213) (13)
T ax credit for the period (104) (183)
11.  Deferred T ax
Recognised deferred tax liability
2013 2013 2013 2013 2012 2012 2012 2012
T ax 
value of 
carried 
forward 
losses
T ax 
value of 
accelerated 
capital 
allowances
Acquisition 
of T eomed 
AG
T otal Tax value 
of carried 
forward 
losses  
Tax value of 
accelerated 
capital 
allowances
Acquisition 
of T eomed 
AG 
Total
£’000 £’000 £’000 £’000 £’000 £’000  £’000 £’000
At 1 July - - (165) (165) - - (201) (201)
Amount credited to 
the income statement
671 (471) 13 213 - - 13 13
Exchange differences - - (7) (7) - - 23 23
At 30 June 671 (471) (159) (41)  - - (165) (165) © Allergy Therapeutics plc www.allergytherapeutics.com 71
Deferred tax is provided under the balance sheet liability method using the local tax rate for the overseas difference. Deferred tax 
assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so and when the deferred tax assets 
and liabilities relate to tax levied by the same tax authority and where there is an intention to settle the balances on a net basis.
The following is the analysis of the deferred tax balances after offset for financial reporting purposes:
2013 2012
£’000 £’000
Deferred tax assets 200 -
Deferred tax liabilities (159) (165)
41 (165)
Unrecognised deferred tax 
2013 2013 2012 2012
Deferred 
tax assets
Deferred 
tax liabilities
Deferred 
tax assets
Deferred 
tax liabilities
£’000 £’000 £’000 £’000
Non Current Assets
Property, plant and equipment - - - (504)
Derivative financial instruments - - - (116)
Current Assets
Stock 402 - - -
Current Liabilities
Derivative financial instruments 72 - 2 -
Non Current Liabilities
Pension and other employee 
obligations
1,040 - 708 -
Derivative financial instruments 3 - 39 -
Share options 131 - 91 -
Unused tax losses 15,023 - 16,523 -
16,671 - 17 ,363 (620)
Offset - - (620) 620
T otal 16,671 - 16,743 - 72 © Allergy Therapeutics plc www.allergytherapeutics.com
As at 30 June 2013 the Group had approximately £69m of unutilised tax losses (2012: approximately £69m) available for offset 
against future profits.  A deferred tax asset has been recognised in respect of £2.9m (2012 £nil) of such losses, the recovery of 
which is supported by the expected level of future profits of the Group.  Substantially all the tax losses have no fixed expiry date.
The main UK corporation tax rate is to change from 23% to 21% with effect from 1 April 2014. The recognised and unrecognised deferred 
tax assets have been calculated at 23%, being the rate enacted at 30 June 2013. The estimated impact of the reduction in the tax rate to 
the net deferred tax asset is a reduction of £17 ,000 and on the unrecognised net deferred tax asset and liabilities is a net reduction in the 
asset of £1 .3m.
12. Earnings Per Share
2013 2012
£’000 £’000
Profit after tax attributable to equity shareholders 536 823
Shares Shares
‘000 ‘000
Issued ordinary shares at start of the period 406,913 310,772
Ordinary shares issued in the period 2,954 96,141
Issued ordinary shares at end of the period 409,867 406,913
Weighted average number of shares in issue for the period 408,388 326,795
Potentially dilutive share options under Group’s share option scheme 18,635 13,256
Weighted average number of shares for diluted earnings per share 427 ,023 340,051
Basic earnings per share (pence) 0.13p 0.25p
Diluted earnings per share (pence) 0.13p 0.24p © Allergy Therapeutics plc www.allergytherapeutics.com 73
13. Goodwill 
2013 2012
£’000 £’000
At 1 July 2,489 2,624
Exchange difference 71 (135)
At 30 June 2,560 2,489
For the purposes of impairment testing of goodwill, the Directors recognise the Group’s Cash Generating Units (“CGU”) 
to be the following:
2013 2012
£’000 £’000
Germany 2,560 2,489
The recoverable amount for the CGU above was determined based on a value-in-use calculation, covering a detailed three-year 
forecast of future cash flows using budgeted projections assuming a 12% discount rate which the Group has estimated to be the 
weighted average cost of capital adjusted for risks specific to the CGU.
Management’s key assumptions include sales growth (at an average of 4% for the three year period), which has been determined 
based on past experience in this market. The Group’s management believes that this is the best available input for forecasting this 
mature market.
Apart from the considerations described in determining the value in use of the CGU described above, the Group’s management is 
not currently aware of any other probable changes that would necessitate changes in its key estimates. There are no reasonable 
possible changes in the assumptions that could lead to an impairment being recorded.  74 © Allergy Therapeutics plc www.allergytherapeutics.com
14. Intangible Assets
Manufacturing 
know-how
Non-competing 
know-how
Other intangibles Computer 
software
Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 July 2011 1,000 3,810 2,153 1,824 8,787
Additions 727 97 824
Asset reclassification - - - 28 28
Foreign exchange - (343) (147) (65) (555)
At 30 June 2012 1,000 3,467 2,733 1,884 9,084
Additions - - - 157 157
Asset reclassification
Disposals
-
-
-
-
-
(684)
11
11
(684)
Foreign exchange - 183 56 42 281
At 30 June 2013 1,000 3,650 2,105 2,094 8,849
Amortisation
At 1 July 2011 867 3,810 987 1,342 7 ,006
Asset reclassification - - - 25 25
Charge for the year 66 - 172 148 386
Foreign exchange - (343) (37) (60) (440)
At 30 June 2012 933 3,467 1,122 1,455 6,977
Disposals - - (84) - (84)
Charge for the year 67 173 134 374
Foreign exchange - 183 15 34 232
At 30 June 2013 1,000 3,650 1,226 1,623 7 ,499
Net book value
At 1 July 2011 133 - 1,166 482 1,781
At 30 June 2012 67 - 1,611 429 2,107
At 30 June 2013 - - 879 471 1,350 © Allergy Therapeutics plc www.allergytherapeutics.com 75
15. Property, Plant and Equipment
Plant &  
machinery
Fixtures & 
fittings
Motor  
vehicles
Computer 
equipment
Freehold land 
& buildings
Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 July 2011 7 ,503 4,745 36 2,811 1,403 16,498
Additions 200 109 - 118 - 427
Asset reclassification* (16) - - (12) - (28)
Foreign exchange (20) (70) - (64) (145) (299)
Disposals (21) (2) - (7) - (30)
At 30 June 2012 7 ,646 4,782 36 2,846 1,258 16,568
Revaluation - - - - (128) (128)
Additions 343 177 - 144 - 664
Asset reclassification* - - - (11) - (11)
Foreign exchange 10 38 - 32 77 157
Disposals - (8) - (2) - (10)
At 30 June 2013 7 ,999 4,989 36 3,009 1,207 17 ,240
Depreciation
At 1 July 2011 3,170 2,710 29 1,713 67 7 ,689
Charge for the year 633 566 5 265 37 1,506
Asset reclassification* - - - (25) - (25)
Foreign exchange (9) (59) - (60) (7) (135)
Disposals (14) (2) - (6) - (22)
At 30 June 2012 3,780 3,215 34 1,887 97 9,013
Charge for the year 425 224 2 275 42 968
Revaluation - - - - (145) (145)
Asset reclassification* - - - - - -
Foreign exchange 7 31 - 25 6 69
Disposals - (2) - - - (2)
At 30 June 2013 4,212 3,468 36 2,187 - 9,903
Net book value
At 1 July 2011 4,333 2,035 7 1,098 1,336 8,809
At 30 June 2012 3,866 1,567 2 959 1,161 7 ,555
At 30 June 2013 3,787 1,521 - 822 1,207 7 ,337
* Assets reclassified to intangibles. 76 © Allergy Therapeutics plc www.allergytherapeutics.com
Note 21 provides details of the assets secured against the Group’s bank borrowings.
The Group’s land and buildings were revalued in July 2009 by independent valuers. The land and buildings were previously valued 
using the cost model and had a carrying value of £1 . Fair values were estimated based on recent market transactions, which were 
then adjusted for specific conditions relating to the land and buildings.
An interim valuation of the Land and Buildings was carried out in April 2013 by independent valuers. Land and buildings were 
revalued to fair value at the reporting date based on this valuation as management determined that the effect of changes in market 
prices between the date of valuation and reporting dates were immaterial.
If the cost basis was used, the carrying amounts of the revalued land and buildings would be £1 . The revalued amounts include a 
revaluation surplus of £1,298,000 before tax (of which £476,000 writes back the accumulated depreciation) which is not available for 
distribution to the shareholders of the Group.
During the year, following a review of the useful lives of all assets within the classes ‘Plant and machinery’ and ‘Fixtures and 
fittings’, certain asset lives were extended by varying amounts, up to a maximum total useful life of 15 years. This had the effect of 
reducing the depreciation charge for the current year by £480,000.
16. Investments
The Group carries an insurance policy which is designed to contribute towards the obligation in respect of the defined benefit 
pension scheme (see note 25). It is valued at fair value (market price) by the Group’s actuaries each year.
2013 2012
£’000 £’000
At 1 July 2,569 2,493
Additions 355 311
(Loss)/Profit on the investment (17) 50
Gain/(Loss) on foreign exchange 152 (285)
3,059 2,569
17 .  Inventories
2013 2012
£’000 £’000
Raw materials and consumables 1,895 2,018
Work in progress 2,273 2,823
Finished goods 1,846 1,810
6,014 6,651
The cost of inventories recognised as an expense in cost of sales during the year was £11 .0m (2012: £12.6m) including write-downs 
in the year amounting to £1 .2m (2012: £1 .3m).
The value of inventories measured at fair value less cost to sell was £77 ,000 (2012: £75,000). © Allergy Therapeutics plc www.allergytherapeutics.com 77
18.  T rade and Other Receivables
2013 2012
£’000 £’000
Trade receivables 3,129 3,107
Other receivables 2,158 542
VAT 117 112
Prepayments 1,781 1,236
7 ,185 4,997
All amounts due as shown above are short-term. The carrying value of trade receivables is considered a reasonable approximation 
of fair value. All trade and other receivables have been reviewed for indicators of impairment. During the year, £152,000 of trade 
receivables was found to be impaired and £105,000 of the provision utilised. The impaired trade receivables are mostly due from 
private customers in the Italian market who are experiencing financial difficulties.
Bad and doubtful debt provision 2013 2012
£’000 £’000
Balance b/f 54 79
Foreign exchange adjustments 8 (15)
Charge for the year 152 (10)
Utilised (105) - 
Balance c/f 109 54
 
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The Directors consider that the 
carrying amount of trade and other receivables approximates their fair value. The age of financial assets past due but not impaired 
is as follows: 
The financial assets which were overdue but not 
provided for were:
2013 2012
£’000 £’000
T rade receivables
Not more than 3 months 640 551
More than 3 months but not more than 6 months 456 465
More than 6 months but not more than 1 year 200 112
More than one year 99 158
1,395 1,286 78 © Allergy Therapeutics plc www.allergytherapeutics.com
19. Cash and Cash in Hand
2013 2012
£’000 £’000
Cash at bank and in hand 1,257 903
20. T rade and Other Payables
2013 2012
£’000 £’000
Trade payables 3,050 2,553
Social security and other taxes 536 682
Other creditors 717 136
Accrued expenses and deferred income 2,703 2,941
7 ,006 6,312
21. Borrowings
2013 2012
£’000 £’000
Due within one year
Convertible loan note 95 114
Overdraft 193 1,312
288 1,426
Due after more than one year
Convertible loan note - 97
- 97
The overdraft facility is provided by The Royal Bank of Scotland Plc and has a variable limit during the year up to a maximum of 
£6 million. The interest on the overdraft is at the bank’s base rate plus a fixed margin of 3.35%. The facility is secured in favour of 
The Royal Bank of Scotland Plc by means of debentures granted by the Company and its principal subsidiaries and share pledge 
agreements relating to Bencard Allergie GmbH, Allergy Therapeutics Italia SRL and Allergy Therapeutics Iberica SL.
The Convertible loan notes were issued in April 2012 (Note 26). The liability relates to the interest payable over the next year. © Allergy Therapeutics plc www.allergytherapeutics.com 79
22. Provisions
The provision refers to a leaving indemnity reserve in Allergy Therapeutics Italia srl. Under Italian law, alongside each monthly salary 
payment an amount is paid into this reserve for each employee. When the employee leaves the company the accrued amount is 
paid to him in the form of a deferred salary payment.
2013 2012
£’000 £’000
At 1 July 274 283
Additions 26 42
Utilisation (19) (20)
Foreign exchange movement 19 (31)
At 30 June 300 274
23. Financial instruments
Risk management
The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern whilst 
maximising the return to shareholders through the effective management of liquid resources raised through share issues and loan 
arrangements. Capital management objectives are met through regular reviews of cash flows, debtor/creditor balances, budgets 
and forecasts.
2013 2012
£’000 £’000
Total equity 14,671 14,592
Cash and cash equivalents (1,257) (903)
Capital 13,414 13,689
Total equity 14,671 14,592
Borrowings 288 1,523
Overall financing 14,959 16,115
Capital-to-overall financing ratio 0.90 0.85
The Directors are satisfied with the ratio above. 80 © Allergy Therapeutics plc www.allergytherapeutics.com
The IAS 39 categories of financial assets and liabilities included in the balance sheet and the headings under which they are shown 
are as follows:
Categories of financial instrument
2013 2012
£’000 £’000
Financial assets
Current
Loans and receivables (including cash and cash equivalents) 6,661 4,664
Fair value through profit and loss – held for trading 2 483
Non financial current assets 1,781 1,236
8,444 6,383
Financial liabilities
Current
At amortised cost (including borrowings and payables) (3,918) (4,293)
Fair value through profit and loss – held for trading (326) (9)
Non financial current liabilities (3,376) (3,445)
Non current
At amortised cost (including borrowings and payables) (300) (372)
Fair value through profit and loss – held for trading - (162)
Non financial non current liabilities (159) (165)
(8,079) (8,446)
Derivative financial instruments
The Group uses derivative financial instruments to mitigate the effects of exchange rate exposure through the use of forward 
exchange contracts and interest rate volatility through the use of interest rate swap arrangements.
The fair value is calculated by reference to market rates and supported by counterparty confirmation. 
Interest rate swap
These were arranged to convert 60% of the Company’s loan borrowings from floating to fixed rates. The loan was fully repaid in 
April 2012 and the swaps will come to an end in September 2013. Within the fair value hierarchy, this financial derivative is classified 
as level 2.
Canadian Dollar forward contracts 
The Group has Canadian Dollar forward contracts with its bank that are arranged for the purchase of CAD 150,000 to sell GBP at a 
rate of 1 .60 in July 2013. Within the fair value hierarchy, this financial derivative is classified as level 2.
Euro forward contracts
The Group has Euro forward contracts with its bank that are arranged for the sale of €14,396,000 to purchase GBP at an average 
blended rate of 1 .1967 at future dates from August 2013 to April 2014. Within the fair value hierarchy, this financial derivative is 
classified as level 2. © Allergy Therapeutics plc www.allergytherapeutics.com 81
Analysis of derivative financial instruments 2013 2012
£’000 £’000
(Charge) / Credit to the Income Statement
Euro exchange swap - held for trading 10 (3)
Euro exchange swap – matured in the period 11 1
Euro forward contacts -  held for trading (797) 1,282
Euro forward contracts - matured in the period 506 51
(270) 1,331
Interest rate swap -  held for trading 149 214
Interest rate swap – charges in the period (167) (278)
(18) (64)
Forward exchange contracts are considered by management to be part of economic hedge arrangements but have not been 
formally designated as such and hence hedge accounting is not used.
Derivative financial instruments 2013 2012
£’000 £’000
Current Assets
Derivative financial instruments
 - Euro forward contracts -  held for trading - 483
 - Euro exchange swap - held for trading 2 -
2 483
Current liabilities
Derivative financial instruments
 - Euro exchange swap - held for trading - 9
 - Euro forward contracts -  held for trading 313 -
 - Interest rate swap – held for trading 13 -
326 9
Non current liabilities
Derivative financial instruments
 - Interest rate swap – held for trading - 162
- 162
The net loss at fair value of financial instruments through the profit and loss is £637 ,000 (2012 gain: £1,493,000). 82 © Allergy Therapeutics plc www.allergytherapeutics.com
Foreign currency risk
The Group conducts most of its day to day financial activities in either the Euro (which is the functional currency of the active 
subsidiaries in Germany, Italy, Spain, Austria and The Netherlands), Sterling (which is the functional currency of the UK parent entity), 
Swiss Francs (which is the functional currency of the Swiss subsidiary) or Argentinean Pesos (which is the functional currency of the 
Argentine subsidiary). Some costs are denominated in US dollars and some income is denominated in Canadian dollars. 
 
The Group carries bank balances in the following currencies:
2013 2012
£’000 £’000
Sterling (178) (1,263)
Euro 863 716
US dollars 6 33
Canadian dollars 259 -
Swiss franc 113 80
Polish zloty - -
Argentinean peso 1 25
1,064 (409)
Foreign currency denominated financial assets and liabilities, translated into Sterling at closing rates, are as follows:
2013 2012
Sterling Euro Other Sterling Euro Other
£’000 £’000 £’000 £’000 £’000 £’000
Financial assets 480 5,202 981 344 3,935 867
Financial liabilities (2,202) (1,437) (605) (2,709) (1,305) (288)
Short term exposure (1,722) 3,765 376 (2,365) 2,630 579
Financial assets - - - - - -
Financial liabilities - (300) - (97) (437) -
Long term exposure - (300) - (97) (437) - © Allergy Therapeutics plc www.allergytherapeutics.com 83
The following table illustrates the sensitivity of the net result for the year and the equity of the Group with regard to its financial assets 
and liabilities and the Euro to Sterling exchange rate. Foreign exchange movements over the last two years have been considered and 
an average taken, and on this basis a 10% movement is considered to be a reasonable benchmark. For 2013, a 10% movement was 
also used.
2013 2012
£’000 £’000
If Sterling had strengthened against the Euro by 10% 10%
Net results for the year 2,051 1,674
Other comprehensive income (430) (419)
1,621 1,255
If Sterling had weakened against the Euro by 10% 10%
Net results for the year (2,509) (1,796)
Other comprehensive income 525 512
(1,984) (1,284)
Interest rate risk
The Group finances its operations through equity fundraising and overdraft facilities. Interest is charged at a floating rate on the 
overdraft facility. The overdraft facility is tailored in such a way as to give flexibility to the Group. This allows the Group to utilise a higher 
proportion of the facility in the low sales season and pay down the debt in the high sales season. The following table illustrates the 
sensitivity of the net result for the year and equity to possible changes in interest rates of + 1% with effect from the beginning of the 
year on the remaining element of borrowings. Due to the current low interest rates it is unfeasible to illustrate the results were the 
interest rates to fall by 1%. The changes are considered to be reasonable given the current market conditions and the calculations are 
based on the financial instruments held at each balance sheet date, all other variables being held constant.
2013 2013 2012 2012
£’000 £’000 £’000 £’000
+ 1% - 1% + 1% - 1%
Movement in net results for the year 34 n/a (43) n/a
Equity - n/a - n/a
34 n/a (43) n/a 84 © Allergy Therapeutics plc www.allergytherapeutics.com
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. 
In order to minimise this risk the Group endeavours only to deal with companies which are demonstrably creditworthy and this, 
together with the aggregate financial exposure, is regularly monitored. The maximum exposure to credit risk is the value of the 
outstanding amount.
Credit risk on cash and cash equivalents is considered to be small as the counterparties are all substantial banks with high credit 
ratings. The maximum exposure is the amount of the deposit.
Liquidity risk
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern, and to provide 
adequate funding for its day to day operations. Management has access to funding through a bank facility and continues to have 
the option to raise funds from the issue of equity shares to ensure the Group remains able to meet its commitments as they fall 
due. The Group’s bank facility (Note 21) is due for renewal in May 2014. As at 30 June 2013 the Group’s contractual maturities are 
summarised as follows:
Current liabilities
2013 2013 2012 2012
£’000 £’000 £’000 £’000
Within 6 
months
6 to 12  
months
Within 6 
months
6 to 12 
months
Borrowing facility - principal 193 - 1,312 -
Borrowing facility - interest and other charges - - 2 -
Convertible loan note - interest and other charges - 95 - 114
Trade payables 3,630 - 2,867 -
Other short term liabilities 3,376 - 3,445 -
7 ,199 95 7 ,626 114
Derivatives 292 34 9 -
7 ,491 129 7 ,635 114
Non-current liabilities 2013 2013 2012 2012
£’000 £’000 £’000 £’000
1 to 5 years Later than 
5 years
1 to 5 years Later than 
5 years
Borrowing facility - principal - - - -
Borrowing facility - interest and other charges - - - -
Convertible loan note - interest and other charges - - 97 -
Other long term liabilities 300 - 275 -
300 - 372 -
Derivatives - - 162 -
300 - 534 -
 
There is no material difference between the fair values and the carrying values of these financial instruments. © Allergy Therapeutics plc www.allergytherapeutics.com 85
24. Operating Lease Commitments
The following payments are due to be made on operating lease commitments:
Land & buildings Other T otal
2013 2012 2013 2012 2013 2012
£’000 £’000 £’000 £’000 £’000 £’000
Within one year 701 454 367 400 1,068 854
Two to five years 2,187 1,354 427 587 2,614 1,941
Over five years 1,655 411 - - 1,655 411
4,543 2,219 794 987 5,337 3,206
Of the operating lease commitments for the land and buildings of £4,543,000 (2012: £2,219,000), £3,758,000 relates to the UK 
premises (2012: £1,114,000). The production facility accounts for £3,307 ,000 (2012: £599,000) of this commitment and expires in 
December 2023. Premises in Spain account for £187 ,000 (2012: £207 ,000) expiring in 2020 and in Germany for £491,000 (2012: 
£648,000) expiring in December 2015. 
Of the other commitments, £588,000 (2012: £782,000) relates to leased vehicles all expiring within 5 years.
25. Retirement Benefit Obligations
Defined contribution scheme
The Group operates a defined contribution pension scheme for certain employees in the UK. The assets of the scheme are held 
separately from those of the Group in an independently administered fund. The amount charged against the profits represents the 
contributions payable under the scheme in respect of the accounting period totalling £267 ,000 (2012: £234,000).  86 © Allergy Therapeutics plc www.allergytherapeutics.com
Defined benefit scheme
The Group operates a partly funded non-contributory defined benefit pension scheme for certain employees in Germany. 
The actuarial valuation was carried out by Swiss Life Pensions Management GmbH at 30 June 2013. The major assumptions used 
were as follows: 
2013 2012
% pa % pa
Retail price inflation 1.5 1.5
Salary increase rate 3.0 3.0
Rate of pension increase 1.5 1.5
Discount rate at the beginning of the year 4.0 5.0
Discount rate at the end of the year 3.35 4.0
Expected return on assets 3.35 3.5
Increase of social security contribution ceiling 3.0 3.0
Average life expectancies Y ears Years
Male, 65 years of age at the balance sheet date 19.2 18.6
Female, 65 years of age at the balance sheet date 23.3 22.7
Male, 45 years of age at the balance sheet date 38.9 38.8
Female, 45 years of age at the balance sheet date 44.0 43.9
The assets in the scheme and the expected rates 
of return were as follows:
2013 2012
£’000 £’000
Fair value of plan assets 1,414 1,196
Present value of scheme liabilities (7 ,628) (5,913)
Deficit in the scheme (6,214) (4,717)
Experience gains/(losses) on plan assets 18 (4)
Experience losses on plan liabilities (191) (88) © Allergy Therapeutics plc www.allergytherapeutics.com 87
The plan assets consist of long-term insurance policies held to cover the German pension obligation. The value of the plan assets is 
deducted from the value of the pension liability to give a net liability of £6,214,000 (2012: £4,717 ,000). The basis used to determine 
the overall expected rate of return is the expected market return as determined by Swiss Life Pensions Management GmbH using 
the projected unit credit method. The actual return on plan assets for the year is £60,000 (2012: £44,000). The pension charge 
generates an unrecognised deferred tax asset of £1,040,000 (2012: £708,000), however this is unrecognised in the Group accounts 
as there is uncertainty over the recoverability.
Long term insurance policies that do not qualify as plan assets are recognised as separate investment assets at fair value and 
represent a re-imbursement right as defined by IAS 19. Management have assumed that there will be no expected return on these 
assets as was the case in the previous year. See note 16 for further details of these investment assets.
2013 2012
£’000 £’000
Amounts charged to operating profit
Current service costs 243 240
Amounts included in other finance expenses
Expected return on pension scheme assets (42) (48)
Interest on pension scheme liabilities 235 259
Net charge 193 211
Amounts recognised in other comprehensive income
Actual return less expected return on pension scheme assets 18 (4)
Experience losses arising on scheme liabilities (191) (88)
Changes in assumptions underlying the present value of scheme liabilities (692) (642)
Total amount relating to year (865) (734)
Opening cumulative losses (1,645) (911)
Actuarial loss recognised (2,510) (1,645)
Net movement recognised (2,510) (1,645)
Movement in assets during the year 2013 2012
£’000 £’000
Balance as at 1 July 1,196 1,275
Foreign currency differences 97 (136)
Expected return 42 48
Actuarial gain/ (losses) 18 (4)
Contributions from employer 121 57
Assets transferred to finance benefits paid (60) (44) 
Balance as at 30 June 1,414 1,196 88 © Allergy Therapeutics plc www.allergytherapeutics.com
Movement in liabilities in the year 2013          2012
£’000         £’000
Balance as at 1 July (5,913) (5,389)
Foreign currency differences (455) 644
Current service costs (243) (240)
Interest cost (235) (259)
Actuarial losses (885) (730)
Benefits paid by employer 43 17
Benefits paid from assets 60 44
Balance as at 30 June (7 ,628) (5,913)
The expected contributions over the forthcoming year are £57 ,000.
History of retirement benefit obligation
2013 2012 2011 2010 2009
£’000 £’000 £’000 £’000 £’000
Fair value of plan assets 1,414 1,196 1,275 1,076 1,104
Present value of scheme liabilities (7 ,628) (5,913) (5,389) (4,649) (3,925)
Scheme deficit (6,214) (4,717) (4,114) (3,573) (2,821)
History of experience gains and losses
2013 2013 2012 2012 2011 2011 2010 2010 2009 2009
% £’000 % £’000 % £’000 % £’000 % £’000
Scheme assets
Difference between the 
expected and actual return
(1.4) 18 (0.3) (4) (0.5) (6) (0.7) (9) (0.9) (10)
Scheme liabilities
Experience gains and (losses) (2.7) (191) (1 .4) (88) 4.7 254 (2.1) (108) - 1
Changes in assumptions 
underlying present value
(692) (642) - (495) -
T otal amount recognised (12.0) (865) (11 .5) (734) 4.6 248 (12.1) (612) (0.2) (9) © Allergy Therapeutics plc www.allergytherapeutics.com 89
26. Issued Share Capital 
2013 2013 2012 2012
Shares £’000 Shares £’000
Authorised share capital
Ordinary shares of 0.10p each
1 July and 30 June 790,151,667 790 790,151,667 790
Deferred shares of 0.10p each
1 July and 30 June 9,848,333 10 9,848,333 10
Issued and fully paid
Ordinary shares of 0.10p
At 1 July 406,912,981 407 310,771,614 311
Issued during the year 2,953,850 3 96,141,367 96
At 30 June 409,866,831 410 406,912,981 407
Issued and fully paid
Deferred shares of 0.10p
At 1 July 9,848,333 10 9,848,333 10
Issued during the year -
At 30 June 9,848,333 10 9,848,333 10
Issued share capital 419,715,164 420 416,761,314 417
The deferred shares have no voting rights, dividend rights or value attached to them.
Share options were exercised in the year with proceeds of £148,000.
Convertible Loan Notes to the value of £4,042,000 were issued on 20 April 2012 following approval by shareholders. Interest is 
payable at a rate of 3% per annum during the term of the notes. On redemption, the Convertible Loan Notes will be converted into 
41,674,938 ordinary shares at a price of 9.7p per share. 
27 . Share Based Payments
The Group has a Long Term Incentive Plan (‘LTIP’) under which Executive Directors and senior employees may receive an annual 
provisional award of performing vesting shares.
The Group has two plans: the initial 2005 Plan and the 2013 Plan. The 2013 LTIP was adopted by the Board on 20 March 2013, the 
board having consulted major shareholders. Awards were made under the initial 2005 plan and the new plan during the year.
Under the 2005 plan the number of shares that vest depends on the Group’s performance during the Plan cycle in terms of total 
shareholder return (TSR) compared to the TSR performance of the companies in the Plan’s peer group. If the Group’s position in 
the peer group at the end of the Plan cycle is at or above the 75
th
 percentile, 100% of the shares provisionally awarded may vest; 
between the 75
th
 and 50
th
 percentile the percentage of shares that may vest will be calculated on a straight-line basis between 
100% and 33.33%; below the 50
th
 percentile no shares will vest. Each Plan cycle will comprise not less than three consecutive 
financial years. Awards are forfeited if the employee leaves the Group before the shares vest. 90 © Allergy Therapeutics plc www.allergytherapeutics.com
For the 2013 plan implemented during the year, performance criteria for each award under the plan will be set by the remuneration 
committee. The 2013 award is based on the annual compound shareholder growth calculated as a percentage of a formula, the 
TSR Growth. An award shall vest to a 100% if at the end of a plan cycle the maximum annual compound growth has been satisfied 
being 25% of TSR Growth. If the TSR Growth is less than 10% only 25% shares shall be awarded. If the TSR Growth is between 
100% and 25% an award based on a straight line basis will be vested. Performance criteria for subsequent awards under this plan 
may vary. Each plan cycle will comprise a period of three years. An award will be forfeited if the employee leaves the Group before 
the shares vest.
Share options were granted to employees and Directors under earlier schemes. The vesting periods are usually from one to three 
years. The vesting of some options is dependent on the Group’s TSR performance as for the LTIP detailed above. The options are 
settled in equity once exercised. If the options remain unexercised after a period of 10 years from the date of the grant, the options 
expire. Options are forfeited if the employee leaves the Group before the options vest. 
During the year two new LTIP grants were provisionally awarded. The first of these grants was awarded under the initial 2005 Plan. 
The latest grant, in May 2013, was awarded under the 2013 Plan.
For the following outstanding share options disclosure, LTIP awards (which have a nil exercise price) have been disclosed separately to 
avoid distorting the weighted average exercise price (WAEP):
2013 WAEP 2012 WAEP
Number Price (£) Number Price (£)
Outstanding at the beginning of the year 2,468,490 0.16 4,650,730 0.16
Granted during the year 2,050,000 0.07 - -
Exercised during the year (2,953,850) 0.05 - -
Forfeited during the year (412,057) 0.33 (2,182,240) 0.17
Cancelled during the year - - -
Outstanding at the year end 1,152,583 0.23 2,468,490 0.16
Exercisable at the year end 1,152,583 0.23 2,362,304 0.16
Options exercised during the year had a weighted average share price at the date of exercise of 12p (2012: None).
The share options outstanding at the end of the year detailed above have a weighted average remaining contractual life of 4.3 years 
(2012: 1 .6 years) and have the following range of exercise prices:
30 June 2013 30 June 2012
Exercise price (p) Number Number
0.1-5 - 1,614,700
6-45 1,124,017 825,224
46-120 28,566 28,566
1,152,583 2,468,490 © Allergy Therapeutics plc www.allergytherapeutics.com 91
Outstanding shares provisionally awarded under the Long Term Incentive Plan, with a nil exercise price, are as follows:
30 June 2013 30 June 2012
Number Number
Outstanding at the beginning of the year 10,787 ,000 7 ,944,000
Awarded during the year 10,802,500 4,725,000
Forfeited during the year (4,107 ,000) (1,882,000)
Cancelled during the year - - 
Outstanding at the year end 17 ,482,500 10,787 ,000
The fair value of the Long Term Incentive Plan shares has been arrived at using the share price at the date of grant and applying a 
vesting probability for the market performance conditions. The assumptions made to value shares awarded were as follows:
Date of 
grant
Vesting 
period 
(yrs)
Date of 
vesting
Expected life 
(yrs)
Exercise 
price 
(£)
Share 
price at 
grant (£)
Vesting 
probability 
(%)
Fair 
value 
(£) 
Number 
outstanding
10/05/13 3 10/05/16 3 0.0000 0.101 36.8 0.042 6,367 ,500
20/12/12 3 20/12/15 3 0.0000 0.118 36.8 0.049 4,230,000
14/12/11 3 14/12/14 3 0.0000 0.106 41 .5 0.044 3,825,000
07/12/10 3 07/12/13 3 0.0000 0.091 41 .5 0.038 3,060,000
20/07/09 3 20/07/12 3 0.0000 0.148 41 .5 0.061 -
The share-based payment charge assumes an employee attrition rate of 5% per annum. In addition to the above employee related 
awards, the Group also awarded options for 650,000 shares with an exercise price of £0.124 as payment to a third party advisor. 
The Group recognised total expenses of £183,000 (2012: £131,000) related to equity-settled share based payment transactions 
during the year. 
28. Contingent Liabilities
Allergy Therapeutics (UK) Ltd, a subsidiary of Allergy Therapeutics plc, has guaranteed the deposits required for leases on cars and 
rented office space of Bencard Allergie GmbH. The amount as at 30 June 2013 was €107 ,426; £91,833 (2012: €107 ,426; £86,508).
A cross-guarantee exists between Allergy Therapeutics (Holdings) Ltd, Allergy Therapeutics (UK) Ltd, Bencard Allergie GmbH, 
Allergy Therapeutics Italia srl. and Allergy Therapeutics Iberica SL. inwhich the liabilities of each entity to the Royal Bank of Scotland 
Plc are guaranteed by all the others. 
The European Commission has recently opened an investigation into whether the exemption of pharmaceutical manufacturers from 
the increase in rebates in Germany constitutes state aid. If it is eventually concluded that the exemptions constitute state aid, then all 
unlawful aid may have to be repaid. On the balance of probabilities, the Group does not consider that it will have to repay any rebate 
exemptions. However, should a repayment be required, then the maximum amount to be repaid would be approximately £5 million. 
Included in other receivables is an amount of £1 .4 million in respect of exempted rebates which the Group continues to collect.  92 © Allergy Therapeutics plc www.allergytherapeutics.com
29.  Capital Commitments
The Group’s capital commitments at the end of the financial period, for which no provision has been made, are as follows: 
30 June 2013 30 June 2012
£’000 £’000
Capital commitments 459 148
Included in the above is £22,000 for ongoing factory refurbishments in the UK (2012: £nil); £156,000 for new plant and machinery 
(2012: £142,000) and £281,000 for IT equipment and systems upgrades (2012: £6,000).
30. Related Party T ransactions
Allergy Therapeutics plc’s related parties include its subsidiary companies and its key management. Key management personnel are 
the Company’s Directors, and as such full disclosure of their remuneration can be found in the Directors’ Remuneration report on 
pages 46 to 48.
At 30 June 2013, the Company’s subsidiary undertakings were:
Subsidiary undertaking Country of 
incorporation
Principal activity Percentage of 
shares held
Class of shares 
held
Allergy Therapeutics (Holdings) Ltd     UK Holding Compan y                                 100
Ordinary and 
deferred
Allergy Therapeutics (UK) Ltd                 UK
Manufacture and sale of 
pharmaceutical products
100 Ordinary
Bencard Allergie GmbH                          Germany Sale of pharmaceutical products 100 Ordinary
Bencard Allergie (Austria) GmbH         Austria Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Italia s.r.l.    Italy Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Iberica S.L.     Spain Sale of pharmaceutical products 100 Ordinary
Teomed A.G.                     Switzerland Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Netherlands BV Netherlands Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Argentina S.A.     Argentina
Marketing of pharmaceutical 
products
100 Ordinary © Allergy Therapeutics plc www.allergytherapeutics.com 93
During the year, Group companies entered into the following transactions with related parties that are not members of the Group:
Related Party Sales of goods Amounts owed by/(to) related parties
2013 2012 2013 2012
£’000 £’000 £’000 £’000
Laboratorios Synthesis S.A.S. 13 29 (33) 4
Gynopharm de Venezuela C.A. 28 6 (4) 6
Laboratorio Internacional Argentino S.A. 9 24 3 27
T otal 50 59 (34) 37
Laboratorios Synthesis S.A.S., Gynopharm de Venezuela C.A. and Laboratorio Internacional Argentino S.A. are wholly-owned 
subsidiaries of CFR Pharmaceuticals SA. CFR Pharmaceuticals SA is a major investor in Allergy Therapeutics plc.
Sales of goods to related parties were made at the Group’s usual list prices on the Group’s normal trading terms.
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No provisions have 
been made for doubtful debts in respect of the amounts owed by related parties. 94 © Allergy Therapeutics plc www.allergytherapeutics.com
We have audited the parent company financial statements 
of Allergy Therapeutics plc for the year ended 30 June 2013 
which comprise the parent company balance sheet and the 
related notes. The financial reporting framework that has 
been applied in their preparation is applicable law and United 
Kingdom Accounting Standards (United Kingdom Generally 
Accepted Accounting Practice).
This report is made solely to the company’s members, 
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken 
so that we might state to the company’s members those 
matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent 
permitted by law, we do not accept or assume responsibility 
to anyone other than the company and the company’s 
members as a body, for our audit work, for this report, or for 
the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities 
Statement set out on page 45, the directors are responsible 
for the preparation of the parent company financial 
statements and for being satisfied that they give a true and 
fair view. Our responsibility is to audit and express an opinion 
on the parent company financial statements in accordance 
with applicable law and International Standards on Auditing 
(UK and Ireland). Those standards require us to comply with 
the Auditing Practices Board’s (APB’s) Ethical Standards for 
Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial 
statements is provided on the APB’s website at 
www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion the parent company financial statements:
• Give a true and fair view of the state of the company’s 
affairs as at 30 June 2013; 
• Have been properly prepared in accordance with United 
Kingdom Generally Accepted Accounting Practice; and
• Have been prepared in accordance with the 
requirements of the Companies Act 2006.
Opinion on other matter prescribed by 
the Companies Act 2006
In our opinion the information given in the Directors’ Report for 
the financial year for which the financial statements are prepared 
is consistent with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you 
if, in our opinion:
• Adequate accounting records have not been kept by the 
parent company, or returns adequate for our audit have 
not been received from branches not visited by us; or
• The parent company financial statements are not in 
agreement with the accounting records and returns; or
• Certain disclosures of directors’ remuneration specified 
by law are not made; or
• We have not received all the information and 
explanations we require for our audit.
Other matter
We have reported separately on the Group financial 
statements of Allergy Therapeutics plc for the year ended 
30 June 2013. 
Christian Heeger
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Gatwick
13 September 2013
Independant  Auditor’s Report to the Members of Allergy Therapeutics plc (Company) © Allergy Therapeutics plc www.allergytherapeutics.com 95
 30 June 30 June
2013 2012
Note £’000 £’000
Fixed assets
Investments 3 1,300 1,276
Current assets
Debtors: amounts falling due within one year 4 305 332
Creditors: amounts falling due within one year 5 (134) (114)
Net current assets 171 218
T otal assets less current liabilities 1,471 1,494
Creditors: amounts falling due after one year 6
-
(97)
Net assets 1,471 1,397
Capital and reserves
Called up share capital 7 420 417
Share premium account 8 67 ,716 67 ,571
Other reserves – Convertible loan note 8 3,652 3,652
Other reserves – shares held by EBT 8 67 67
Other reserves – share based payments 8 679 1,496
Profit and loss account 8 (71,063) (71,806)
T otal equity 1,471 1,397
These financial statements were approved by the Board of Directors on 13 September 2013 and were signed on its behalf by
Manuel Llobet   Ian Postlethwaite
Chief Executive Officer  Finance Director
Registered number: 05141592
Company Balance Sheet 96 © Allergy Therapeutics plc www.allergytherapeutics.com
1. Acounting Policies
Basis of preparation
The separate financial statements of the Company are 
presented as required by the Companies Act 2006. As 
permitted by that Act, the separate financial statements have 
been prepared in accordance with applicable United Kingdom 
accounting standards and under the historical cost convention. 
Going Concern
For the fourth year running, the Group has reported an 
operating profit, however for the financial years ended 2007 to 
2009 primarily as a consequence of its investment in research 
and development activities, it reported losses. These losses 
have been funded by equity issues, debt facilities and cash 
generated by the operating business 
The Group has prepared detailed budgets, including cash 
flow projections, for the periods ending 30 June 2014 and 
30 June 2015. These projections include assumptions on 
the trading performance of the operating business and the 
continued availability of the existing debt facilities. After 
making appropriate enquiries, which included a review of the 
annual budget, by considering the cash flow requirements 
for the foreseeable future and the effects of sales and other 
sensitivities on the Group’s funding plans, the Directors 
continue to believe that the Group and Company will have 
adequate resources to continue in operational existence for 
the foreseeable future and accordingly have applied the going 
concern principle in drawing up the financial statements. 
In reaching this view, the Directors have considered and 
prioritised the actions that could be taken to offset the impact 
of any shortfall in operating performance.
Investments
Investments in shares in subsidiary undertakings are included 
at cost less amounts written off.
 
Foreign currencies
Transactions in foreign currencies are recorded using the rate 
of exchange ruling at the preceding month-end.  Monetary 
assets and liabilities denominated in foreign currencies are 
translated using the rate of exchange ruling at the balance 
sheet date and the gains or losses on translation are included 
in the profit and loss account.
Deferred taxation
Deferred tax is recognised in respect of all timing differences 
that have originated but not reversed at the balance sheet 
date where transactions or events have occurred at that date 
that will result in an obligation to pay more, or a right to pay 
less or to receive more, tax.
Deferred tax assets are recognised only to the extent that the 
directors consider that it is more likely than not that there will 
be suitable taxable profits from which the future reversal of 
the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax 
rates that are expected to apply in the periods in which timing 
differences reverse, based on tax rates and laws enacted or 
substantively enacted at the balance sheet date.
Employee Benefit T rust (EBT)
The financial statements include the assets and liabilities of a 
trust, set up for the benefit of the Company’s employees.  
 
The Employee Benefit Trust has acquired shares in the 
Company and these are deducted from shareholders funds on 
the balance sheet within ‘Other reserves’ initially at the cost 
that the shares were acquired.  The net proceeds received 
from the issue of these shares through the exercise of options 
are recognised through this reserve. There are no shares 
remaining in the EBT .
Share based payments
The Company has adopted the amendment to FRS 20 
(Group cash-settled share based payment transactions). 
The Company has equity-settled share based payments 
but no cash-settled share based payments. All share based 
payment awards granted after 7 November 2002 which had 
not vested prior to 1 July 2006 are recognised in the financial 
statements of the subsidiary which receives the goods or 
service from the supplier (including employees), however 
the share based payment reserve remains in the Company’s 
financial statements. Share based payments made in respect 
of the Company’s shares to employees of its subsidiaries 
are reported as an increase in investment. All goods and 
services received in exchange for the grant of any share-based 
payment are measured at their fair values. Where employees 
are rewarded using share-based payments, the fair values of 
employees’ services are determined indirectly by reference 
to the fair value of the instrument granted to the employee. 
This fair value is appraised at the grant date and excludes 
the impact of non-market vesting conditions (for example, 
profitability and sales growth targets). 
Notes to Company Balance Sheet © Allergy Therapeutics plc www.allergytherapeutics.com 97
If vesting periods or non-market based vesting conditions apply, the expense is allocated over the vesting period, based on the 
best available estimate of share options expected to vest. Estimates are revised subsequently if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised 
in the current period. 
If market based vesting conditions apply, the expense is allocated over the relevant period, usually the period over which 
performance is measured. Vesting assumptions and resulting expenses are fixed at the date of grant, regardless of whether market 
conditions are actually met. Any adjustment for options which lapse prior to vesting is recognised in the current period.
2. Loss for the Financial Period
The Company has taken advantage of s.408 of the Companies Act 2006 and has not included its own profit and loss account in these 
financial statements. The Company’s loss for the period was £257 ,000 loss (2012: £13.5 million loss).
3. Investments
Shares in subsidiary undertaking
£’000
Cost
Investment brought forward 1,276
Additions 184
Diminution in value (160)
Investment carried forward 1,300
At 30 June 2013 the Company’s subsidiary undertakings were:
Subsidiary undertaking
Country of 
incorporation
Principal activity
Percentage of 
shares held
Class of 
shares held
Allergy Therapeutics (Holdings) Ltd UK Holding Company 100
Ordinary and 
deferred
Allergy Therapeutics (UK) Ltd UK
Manufacture and sale of 
pharmaceutical products
100 Ordinary
Bencard Allergie GmbH Germany Sale of pharmaceutical products 100 Ordinary
Bencard Allergie (Austria) GmbH Austria Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Italia s.r.l. Italy Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Iberica S.L. Spain Sale of pharmaceutical products 100 Ordinary
Teomed A.G. Switzerland Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Netherlands BV Netherlands Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Argentina S.A. Argentina Marketing of pharmaceutical products 100 Ordinary
 
Allergy Therapeutics (Holdings) Ltd is fully owned by Allergy Therapeutics plc. All other subsidiary undertakings except Bencard 
Allergie (Austria) GmbH and Allergy Therapeutics S.A. are fully owned by Allergy Therapeutics (Holdings) Ltd. Bencard Allergie 
(Austria) GmbH is fully owned by Bencard Allergie GmbH.  98 © Allergy Therapeutics plc www.allergytherapeutics.com
4. Debtors
                                                                         30 June 2013 30 June 2012
£’000 £’000
Amounts falling due within one year
Amount owed by subsidiary undertakings 298 318
Prepayments 7 14
305 332
The amount owed by subsidiary undertakings is stated net of provisions of £71,139,000 (2012: £70,740,000).
5. Creditors – amounts falling due within one year
30 June 2013 30 June 2012
£’000 £’000
Convertible loan note interest 95 114
Accruals 38 -
Taxation and social security 1 -
134 114
6. Creditors – amounts falling due after one year
30 June 2013 30 June 2012
£’000 £’000
Convertible loan note interest - 97
7 . Called up share capital
Full details of the Company’s share capital are set out in Note 26 of the consolidated financial statements. © Allergy Therapeutics plc www.allergytherapeutics.com 99
8. Reserves
Profit and loss account
£’000
At 30 June 2012 (71,806)
Loss for the year (257)
Lapsed share based payments transferred to retained losses 1,000
At 30 June 2013 (71,063)
Share premium account
£’000
At 30 June 2012 67 ,571
Shares issued in the year 145
Share issue costs in the year -
At 30 June 2013 67 ,716
Other reserve – share based payments
£’000
At 30 June 2012 1,496
Provision in year for share based payments 183
Lapsed share based payments transferred from retained losses (1,000)
At 30 June 2013 679
Other reserve – EBT
£’000
At 30 June 2012 and 2013 67
Other reserve – Convertible Loan Note
£’000
At 30 June 2012 and 2013 3,652 100 © Allergy Therapeutics plc www.allergytherapeutics.com
9. Share Based Payments
Full details of the Company’s share based payments are set out in Note 27 of the consolidated financial statements.
10. Directors’ emoluments
Full details of the Company’s directors’ emoluments are set out in the Directors’ Remuneration Report on pages 46 to 48.
11. Reconciliation of movement in shareholders’ funds
Y ear to
30 June 2013
Year to
30 June 2012
£’000 £’000
Loss for the financial year (257) (13,523)
Issue of shares from EBT - -
Share based payments 183 131
Shares Issued 148 8,962
Convertible loan note issued - 3,652
Net addition/(reduction) to 
shareholders’ funds
74 (778)
Opening shareholders’ funds 1,397 2,175
Closing shareholders’ funds 1,471 1,397
12. Contingent Liabilities
Full details of the Company’s contingent liabilities are set out in Note 28 of the consolidated financial statements.
13. Related Party T ransactions
In accordance with FRS 8 on Related Party transactions, details of transactions with the Company’s subsidiaries are not disclosed 
as they are included in the consolidated financial statements. The consolidated financial statements include the results of the 
Company.  Details of the related party transactions can be found in Note 30 to the consolidated financial statements. © Allergy Therapeutics plc www.allergytherapeutics.com 101
Registered office
Dominion Way
Worthing
West Sussex
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Advisers
Peel Hunt LLP 
Moor House
120 London Wall
London
EC2Y 5ET
Auditor
Grant Thornton UK LLP
The Explorer Building
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Manor Royal
Crawley West Sussex
RH10 9GT
Lawyers
Reed Smith
The Broadgate T ower
20 Primrose Street
London
EC2A 2RS 
Covington and Burling LLP
265 Strand
London
WC2R 1BH
Actuary
Swiss Life Pensions Management GmbH
Swiss Life Gruppe
Berliner Strasse 85
80805 München
Germany
Registrars
Capita IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent 
BR3 4TU
Bankers
The Royal Bank of Scotland plc
South East Corporate Centre
Turnpike House
123 High Street
Crawley West Sussex
RH10 1DQ
Public Relations Advisers
FTI Consulting
Holborn Gate
26 Southampton Buildings
London
WC2A 1PB
Patent Attorneys
D Young & Co
120 Holborn
London
EC1N 2DY
T rademark Attorneys
Hoffman Eitle
Sardinia House 
Sardinia Street 
52 Lincoln’s Inn Fields 
London
WC2A 3LZ
Arabellastrasse 4 
D-81925 München 
Germany
Shareholder information