Allergy Therapeutics plc
Annual Report  
& Accounts 2012
www.allergytherapeutics.com 
www.pollinex.com Allergy Therapeutics is a European  
based speciality pharmaceutical  
company focused on the treatment  
and prevention of allergy. 
© Allergy Therapeutics plc Annual Report & Accounts 2012   www.allergytherapeutics.com www.pollinex.com 2 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 3
Contents
Contents
Our business
Who we are  4
Highlights  6
Chairman’s statement  8
Chief Executive’s review  12
Our markets  18
Our products   22
Pollinex Quattro USA opportunity  26
Research & development  28
Financial review  32
Meet the board  36                                  
 
Financial statements
Directors’ report  40
Directors’ remuneration report  49
Nominations committee report  52
Independent auditor’s report   53 
to the members of Allergy  
Therapeutics plc (group)  
Consolidated income statement  54
Consolidated balance sheet  55
Consolidated statement of   56 
changes in equity
Consolidated cash ﬂow   57 
statement  
Notes to the ﬁnancial   58 
statements  
Independent auditor’s report  90  
to the members of Allergy  
Therapeutics plc (company)  
Company balance sheet  91
Notes to the Company   92 
balance sheet  
Shareholder information  96 
   
  Who we are
Allergy Therapeutics is a European-based speciality pharmaceutical company focused  
on the treatment and prevention of allergy. 
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: 
 
 to accelerate penetration of products in current markets and enter into new  
 emerging markets
 
 and/or entering into further licensing agreements
 
 in non-European markets by strengthening the Company’s negotiation position  
 with potential partners 
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 portfolio of patent-protected,  
registered pharmaceutical products.
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 4 Who we are Who we are
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 5 Who we are Highlights - at a glance

®
 
 


 
 at constant currency



 

®
 Quattro Complete Grass in Germany
 
 


© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Highlights  Highlights
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Highlights   Chairman’s statement
 
 
 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Chairman’s statement Chairman’s statement
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Chairman’s statement © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 10 Chairman’s statement
 Chairman’s statement
 
 

 Peter Jensen
 Chairman 
 14 September 2012
I am pleased to write my second statement as Chairman  
of Allergy Therapeutics and comment upon a year that has 
been important in the continued development of the Group. 
 employees for their contribution to the continued success  
of the Group for the year.
 
 ®
 Grass product was a signiﬁcant event  
and milestone for the Company. This decision allows the 
Group to commence a pivotal clinical trial programme for 
 
 identifying a suitable development and commercialisation 
 The successful fundraising that took place in April this year 
 
 
as the cornerstone investor. The resolutions were approved  
 
 
 
 concentrate on the Group’s continued and future growth. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 11 Chairman’s statement
Chairman’s statement
The ﬁnancial results for the year show consistent sales and a 
 This improvement has arisen as a result of favourable foreign 
 introduced during the year. In addition, the Group’s strategy  
 reducing the Group’s reliance on the German market,  
is clearly reﬂected in this year’s results.
I am pleased to welcome Dr Thomas Lander, who joined the 
 
with major pharma and biotech companies, including  
positions in German and Swiss pharmaceutical companies.
I would also like to thank, on behalf of all the stakeholders, 
 
to the development of the Group over a number of years. 
They both stepped down from the Board on 30 June 2012.
Despite challenging market conditions, prospects for the  
Group remain positive, particularly given the lifting of  
 
 
year, both of which bode well for the Group to continue  
to grow the business and deliver shareholder value.
Peter Jensen
Chairman
14 September 2012  CEO’s review

®
 
 enables the Group to move forward in this important and currently poorly served market.   
 Diversiﬁcation into other geographies and product in-licensing opportunities continue to  
 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 12 CEO’s review CEO’s review
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 13 CEO’s review © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 14 CEO’s review
 CEO’s review
 
 

 Manuel Llobet    
 
 14 September 2012
The most recent signiﬁcant achievement was the lifting of 
 a partner to help fund the remainder of the development 
 ®
,  
 
agonist which acts to stimulate and re-direct the immune 
response in decreasing allergenicity and increasing 
 
which are already commercialised in a number of European 
 injections per year and have the potential to transform  
 
and effective vaccination for allergic rhinitis sufferers.  
 
by being the ﬁrst subcutaneous immunotherapy vaccine  
to reach that market.
Looking at the ﬁnancial results, I am pleased to report that 
 favourably with the loss reported in the corresponding  
 to a return to proﬁt, including good cost management as  
we focus on protecting net margins.
 but in some parts of Europe sales were hampered by government 

 
the Company has in fact grown sales thanks to an outstanding 
 annual adjuvant congress held in early July this year, where 
the values of adjuvants in immunotherapy were reviewed.  
The Austrian market continues to have opportunities for 
allergy vaccines, in particular where vaccines offer an 
 Quattro. The success in Ireland during the year has been 
generated by the introduction of Anapen
®
, an epinephrine 
 
Medical, the producer of Anapen, in May 2012, the Company  
is working with Lincoln towards re-establishing normal supply.  © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 15 CEO’s review 
CEO’s review
The Group has continued to decrease its reliance on Germany, 
the Group’s largest market which has been impacted by 
general austerity measures and the withdrawal of de-notiﬁed 
products. This has contributed to a shrinking market that is 
only now showing signs of stabilising. The weaker market and 
the increase in the rebate payable to sick funds, operated by 
German insurance companies have impacted sales. In spite  
of this, the Company has improved its competitive position  
in the number of units sold against the prior year with a strong 
improvement in sales of the registered TA range. The outlook 
for Germany remains cautious given the on-going uncertainty 
in the Eurozone. 
Sales in Spain have also been affected by austerity measures 
introduced to counteract the impact of a weaker economy  
and broader Eurozone related pressures. 
During the period the Group shipped initial supplies of 
vaccines to Colombia, Chile, Argentina and most recently, 
 
 
made, it has been slower than originally anticipated.  
The Group is undertaking an educational programme  
with physicians and continues to develop these markets. 
The Group continues to identify potential new markets and 
in-licensing product opportunities. The Group’s in-licensed 
 for people who are allergic to penicillin, which is licensed by 
Diater Laboratories S.A and Anapen, an emergency device 
 licensed from Lincoln Medical. © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com CEO’s review
As reported previously, a complete response was submitted 
 Quattro Complete grass formulation. The Company addressed 
 volume of 0.5ml; compared to a 1.0ml injection volume for 
 Complete, the Company will pursue further registrations 
 European countries. 
 marketing authorisation applications have been made in 
response to the introduction of the Therapeutic Allergen 
 in Germany. To date many products have been available in 
 of the TAV, all immunotherapy products containing common 
 
The Group has reviewed its product portfolio and has 
submitted marketing authorisation applications for its top  
 applications must have been obtained. The Company currently 
 applications which are likely to result in the Group incurring 
 There have also been changes in the reimbursement regime  
in Germany. As announced in the Company’s annual results last 
year , there has been a price freeze in Germany on reimbursed 
 
The rebate paid to sick-funds increased from August 2010 
 the end of 2011, it is currently uncertain as to whether 
 however it continues to discuss this with the authorities. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com CEO’s review
Outlook
Despite the uncertain economic times in the Group’s  
main markets, the outlook for revenue growth in Europe  
 
 in this important and currently poorly served market. 
Diversiﬁcation into other geographies and product in-licensing 
 strategy for growth. 
 
new, growing and established markets, we are conﬁdent  
of the future prospects of the Group to deliver shareholder 
value in the medium to long term.
Manuel Llobet
 14 September 2012
CEO’s review Our markets
We have a particularly strong presence in Europe with our own established operations  
 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Our markets Our markets
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Our markets © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 20 Our markets
Our markets
During the year, we started to launch our products in Argentina, Venezuela,  
Columbia and Chile, and set up a new marketing operation in Argentina.
We have a particularly strong presence in Europe with our 
own established operations in important markets including 
 
 
are developing as anticipated. Currently, the only major 
 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  
 Germany, the world’s largest immunotherapy market, is the 
 
the Company’s net sales in the 12 months ending 30 June 
 
 
have increased in Austria and Italy with substantial growth in 

 Germany
The most important market for the Group, Germany,  
is also the single largest immunotherapy market in the  
world by value, with annual sales of over €300 million.  
In spite of the market stabilising in volume this year it is  
still affected by the austerity measures the 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 its approach  
to marketing the products. 
 Italy
The total Italian immunotherapy market is estimated to  
be worth €55 million in sales per year; although growth  
is somewhat limited due to negative economic conditions 
impacting patients and their ability to pay for vaccines. 
Moreover, the Italian immunotherapy market is dominated  
 with a stronger organisation in place, we believe there 
remains a signiﬁcant opportunity to continue to grow our 
business in this important market. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 21 Our markets
 Spain
Total market sales in Spain are estimated to be € 
per annum, with low-single digit growth during the past  
year. Growth in this market has been impacted by the 
country’s economic slowdown. It still remains a large  
 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
 marketplace and a potential area of future growth for the 
Group. Whilst there is limited use of allergy vaccines in the 
 promoting greater awareness of current and more suitable 
treatment options. 
 The Netherlands
 €40 million 
 that only registered products can be sold. This should be to 
our advantage as we already have registrations in this market 
 Austria
Austria is an established market with total market sales  
of about € performing well, with double-digit growth.
 Switzerland
The allergy vaccine market in Switzerland is sophisticated  
 €12 million  
 subsidiary, continues to provide a great opportunity to  
improve earnings and provides an established infrastructure  
 Emerging Markets 
During the year, we started to launch our products in 
Argentina, Venezuela, Colombia and Chile, and set up a  
new marketing operation in Argentina. Despite slow sales  
in these Latin American Markets this year, it is still seen  
as a promising potential market.


and Switzerland and Southern Europe represents Spain and 
 revenues through other worldwide markets including Canada, 

Revenue by Country
 
Germany – Our markets Our products & USA opportunity
Injectable vaccines form the largest segment of our vaccines portfolio and are  
 
growing product. 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 22 Our products & USA opportunity Our products & USA opportunity
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 23 Our products & USA opportunity © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 24 Our products & USA opportunity
Our products & USA opportunity
 
immunotherapy by introducing allergy vaccination with only four  
injections per course.
The Group sells a wide range of allergy vaccines and 
diagnostics. The main sales of the Group are in allergy  
vaccines and we sell both injectable vaccines and sublingual 

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.
 
 healthy people develop tolerance to allergens, allergy sufferers 
 and corresponding clinical symptoms. This deregulation of the 
immune system can be counteracted efﬁciently using speciﬁc 
 can be restored. Since SIT was ﬁrst carried out successfully 
 only therapy addressing the cause of type one allergies.
Injectable vaccines form the largest segment of our vaccines 
 Quattro, which is our largest and fastest growing product,  
as well as various other longer course products. These other 
products trade under different names in different markets  
 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 
 
to lower its allergenicity while keeping its immunogenicity  
 
An adjuvant is a substance which improves the immune 
 
 
 in various indications such as cervical cancer and malaria 
 respectively - have received broad approval in Europe, the  
 are already widely used.  
38.6
2010 
42.0
2011 
43.0
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 25 Our products & USA opportunity
 
 
seen in its essential role of promoting the switch from  
 
 schedule allows for a more rapid and simpler escalation  
of dosage making treatment more convenient for patients  
and doctors. 
Licensed Products
 
I or immediate hypersensitivity to benzylpenicillin and related 
 most common cause of severe adverse drug reactions and 
 Anapen is an innovative auto-injector containing 150 mcg, 
 severe, life-threatening systemic allergic reaction. Adrenaline 
 heart rate, constricting blood vessels and dilating airways. 
 Republic of Ireland. 
 regarding Anapen that it had been notiﬁed by Lincoln Medical 
 
that they are undertaking a voluntary drug recall for all 
 reasonable costs incurred by the Company in assisting in  
 
sales for the ﬁnancial year ending June 2013. The Company  
is working with Lincoln towards re-establishing normal supply.
 ®
 Compact 
 
 t.o.p ®
 Grasses + Rye ®
 Trees
The majority of our sales are for the  
treatment of pollen related allergies,  
particularly for allergies to grasses  
and trees. 
 ®
 Quattro
 Gross Sales  £m
2012 
43.8
Our products & USA opportunity © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Pollinex Quattro USA opportunity
Pollinex Quattro USA opportunity
The beneﬁts of immunotherapy are widely accepted by American  
allergists as being the only disease modifying treatment for  
allergic rhinitis. 
 Allergy Therapeutics can now focus on strategic partnering 
opportunities with the aim of revolutionising treatment of 
 
in 2005
1
 with an estimated 30-40
2
 million people suffering 
with the condition, with a further 25 million children and  
adults being diagnosed with hay fever within the last  
12 months (according to the American College of  
 
are receiving immunotherapy, which could lead into a  
market for registered immunotherapy vaccines of about  

Addressing unmet needs
Currently allergy sufferers receiving immunotherapy  
 typically up to 40 injections a year, with native allergens  
 
poor patient compliance and low efﬁcacy. The cost of  
such a large number of injections (possibly up to 100 
 
 
that a faster route to a maintenance dose would see 
improvements in patients adhering to treatment.
3
 treatment option with just 4 injections. Each injection  
contains standardised, puriﬁed and modiﬁed allergen  
 
to improve the therapy The Company has pioneered the 
concept of slow-release depot formulations for allergy 
vaccines, improving safety proﬁles and enhancing efﬁcacy. 
 
options for the American market by providing a short  
course, standardised product. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Pollinex Quattro USA opportunity
Pollinex Quattro USA opportunity
A post marketing study in Germany involving a total of  
 
but others for two or three years has shown that patients 
receive signiﬁcant improvements in their symptoms  
 4
 
The beneﬁts of immunotherapy are widely accepted by 
American allergists as being the only disease modifying 
treatment for allergic rhinitis.
5
Transforming Treatment
 controlled allergy vaccine study ever conducted. The study 
met its primary efﬁcacy endpoint and demonstrated that 
 over placebo. In the prospectively deﬁned patient population 
 patient compliance with a short injection regime.
Building on the success of the 1,000 patient G301 trial and the 
 true potential for the American market with an Environmental 
 allergy treatment.
1. http://www.aaaai.org/about-the-aaaai/newsroom/ 
 A.Allergic Rhintis: Trends in  
 
 3. BioMedical Insights – Assessment of the American market
 
 
 Research & development
 

®
 Quattro Grass programme.
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Research & development Research & development
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Research & development © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 30 Research & development
Research & development
 
markets in Latin America, Asia and Europe. Great strides have been made  

This has been a year of great importance for the Company 
with several key strategic development goals achieved in  
the regulatory arena.
 
the business in the form of the lifting of the clinical hold on  
 ®
 Quattro Grass programme. In July 
 clinical development programme due to an adverse event  
 ®
 enables the Company to progress with its grass clinical 
 actively seeking a partner for further development and 
 is preparing for due diligence, including detailed programme 
plans for discussion with potential partners. 
 several points. Allergy Therapeutics prepared comprehensive 
responses which it believes have addressed the points that 
 
 received in April 2012. Comprehensive and detailed responses 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 31 Research & development
Research & development
As mentioned in previous annual reports, the Therapeutic 
 
 
The Company submitted Marketing Authorisation Applications 
 begun to focus the portfolio on registered ﬁnished products. 
 Company have therefore begun preparations for clinical trials.
 additional potential markets in Latin America, Asia and Europe. 
Great strides have been made in understanding the medical 
 portfolio accordingly to supply the appropriate products and 
supporting information.   Financial review
 
 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 32 Financial review Financial review
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 33 Financial review © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 34 Financial review
 Financial review
 
 

 Ian Postlethwaite 
 
 14 September 2012
The following section should be read in conjunction with  
 Overview of the business model
We are a specialist fully integrated pharmaceutical company, 
focused on the allergy vaccine sector. We concentrate 
on specialist products used by allergists, dermatologists, 
 
who treat people for Allergic Rhinitis.
The results for the twelve months to 30 June 2012 show 
 
 
 Revenue
The Group has continued to grow its revenues in markets 
outside Germany and therefore the reliance of the Group  
 
revenue originating in the territory compared with last  
 Group has also continued to increase its revenue from  
 
 ®
  
 Gross sales for the ﬁnancial year for the Group overall were 
 
 The inﬂuence of the public spending restraints in Germany 
 
 
of Anapen this year, increasing during the ﬁnancial year to 
 
 
 sales in Spain 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
Manufacturing overheads decreased against the prior year 
 of goods due to movements in stock against the prior year. 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 35 Financial review
Financial review
Operating Expenses
Despite challenging market conditions, the Group maintained 
 costs associated with the TAV project in Germany plus  
 administration costs. Moreover the Income Statement 
 
creating an asset at the year end, and the release of the  
prior year fair valuation liability; together contributing to  
 Tax 
 from some of the subsidiaries, resulting in a net credit to  
 Balance Sheet
Spending on capital maintenance items was lower than the 
 years now completed. Intangible assets increased after the 
capitalisation of a milestone payment to Lincoln Medical  
 to a German debtor in last year’s accounts relating to a rebate 
 As a result of favourable working capital movements and 
reduced overheads, the Group generated net cash from 
 Financing 
The successful fundraising that took place in April this year 
 the Group to reduce its ﬁnancing costs by repaying the bank 
loan facility and replacing it with a seasonal overdraft facility. 
The Group utilised the new facility for the ﬁrst time in  
June 2012.
 facilities for the future and accordingly they continue to adopt 
the going concern basis in preparing the full year results.
Ian Postlethwaite
 14 September 2012 Meet the Board
 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Meet the Board Meet the Board
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Meet the Board   Peter Jensen
  Non-Executive Chairman (61) 
 

  Chairman on 1 January 2011.  
2011. 
 
 
  of the Board by ensuring Board 
effectiveness, good corporate governance and effective 
communication with shareholders.


 
 



roles for various public and private companies. These include 

plc, Celsis International plc and Victoria plc.




Gallery Limited.

of the Audit Committee.
   
  
  Manuel Llobet
  Chief Executive Ofﬁcer (48) 
  Manuel Llobet joined the Group in  
 
   reﬁnancing in which Azure Ventures  
  l imited was the main investor. 
 


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.

pharmaceutical industry, primarily in South America, and has 







Manuel also has degrees in Industrial Business Management 

Barcelona.


and implementation of the Board’s collective decisions 
overseeing all operational aspects of the Group and directing 
the long-term strategy.
  
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Meet the Board   Ian Postlethwaite
  Finance Director (49) 
 
  Allergy  Therapeutics in April  
 
 
 
 
  undertaking the roles of Chief 
 

 
the Chartered Association of Certiﬁed Accountants and is  
 Ian is also the Company Secretary, a position he has held 
since 2004.
  Stephen Smith
  Non-Executive Director (59) 
  Stephen Smith is a Chartered  
 
  of the Association of Corporate  
  Treasurers and Member of the  
  Institute for Turnaround. Since  
 
 Stephen chairs the Audit and Remuneration Committees,  
  Alejandro Weinstein Jr
  Non-Executive Director (54)
 
 
 
 
  in 2010, with a presence currently  
 
 for the entire Weinstein family group of pharmaceutical 
 Alejandro has been active in developing and managing  
several businesses and start-ups in the pharmaceutical 
industry and the healthcare sector, including Genomika 
 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 

  Thomas Lander, M.D.
  Non-Executive Director (59)
  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. 
 pharmaceutical industry including Boehringer Ingelheim, 

 
 
 European pharmaceuticals.
Thomas sits on the Remuneration Committee.
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Meet the Board
Meet the Board Directors’ report 
The Directors present their annual report and the audited ﬁnancial statements for the  
12 months ended 30 June 2012. The ﬁnancial statements are for Allergy Therapeutics  
 
© Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 40 Directors’ report  Directors’ report 
© Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 41 Directors’ report  © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 42 Directors’ report 
Directors’ report
The Directors present their annual report and the audited ﬁnancial 
statements for the 12 months ended 30 June 2012. The ﬁnancial 

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 
 manufacturing is based, with sales and marketing  
subsidiaries in Germany, Austria, Italy, Spain,  
 Results
 
  
 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, 
 
 
 incorporated in this report by reference.
Fair review of the Group’s business  
and Key Performance Indicators 
 EBITDA, net cash generated and staff turnover.
 

 Staff turnover, including redundancies and temporary staff,  
 A more detailed 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 
 

and are incorporated in this report by reference.
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. Board approval  
is sought for all development projects and business cases. 
A key challenge facing the Group with respect to the  
 
 
 Product liability risk
 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 
 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.
Intellectual property risk
Group patents may be challenged at any time and any 
unsuccessful defence may cause the Group to lose protection 
 and sales. The Group is reliant on some intellectual property 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 43 Directors’ report 
commercialisation of some of it products. The Group has 
 place to avoid disclosure of patentable material and to protect 
 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 
 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 
 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, 
 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
 
 
obtain further funding may lead to postponement or 
cancellation of programmes. The Board actively reviews  
 A majority of the Group’s sales are denominated in Euros 
whilst the manufacturing and most corporate administration 
 such risks.
Clinical and regulatory
The Group operates in a highly regulated environment for the 
testing, manufacture and supply of its products. Compliance 
 not only the cost of product development and resource use, 
 and/or products have to be withdrawn, reducing revenues 
and/or increasing costs. Regulatory authorities such as 
 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 

Standard operating procedures are maintained to ensure 
compliance with good manufacturing practice. The Group  
maintains constant awareness of new regulations and 
engages with key Regulatory Authorities whenever  
possible to contribute to trends in regulatory thinking.
Financial risk management objectives and policies
 
details of the Group’s objectives and policies for risk 
management of ﬁnancial instruments.
Development and performance of the Group’s business 
during the ﬁnancial year
 Group during the ﬁnancial year, please refer to the Chief 
 
 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. Infrastructure setup in Latin America will provide for 
growth opportunities beyond the current European focus.
Main trends and factors likely to affect the future 
development, performance and position of the Group’s 
business
Allergy remains a fast growing market with largely unmet 
 continues to grow and it is increasingly recognised that for 
many people suffering from hay-fever, it is far from being a 
trivial matter. There are currently few competitors in the niche 
market in which the Group operates. The Board is conﬁdent 
 Emerging Markets.
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 
 waste products are controlled in accordance with applicable 
legislation and regulations. Disposal of hazardous waste is 
handled by specialist agencies. 
Employees
 
 
of opportunity in all employment practices. A thorough review 
of all employees is performed annually to identify and promote 
 encouraged and sought. Staff are motivated by performance 
related incentives, which help to attract and retain the right  © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 44 Directors’ report 
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 
 
 
are adopted where viable.
 
its employment practices, policies and procedures.  
Employees are highly valued and their rights and dignity  
 
staff and potential staff irrespective of their race,  
 
origin, religion, disability, age, gender or marital status.  
 
covers all permanent and temporary employees, job 
applicants, agency staff, consultants and contractors.
A full review of the Group’s activities, important events 
affecting the Group and its development programme is 
 
 
to 35, both of which form part of this report.
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. The Group is committed 
to empowering responsible employees who display sound 

decisions and actions, and who act in an ethical and moral way.
Directors and Directors’ interests
The Directors who held ofﬁce during the period were as follows:
 
  Date of appointment Date of resignation
 
 Peter Jensen
 
 Alejandro Weinstein
 
 Stephen Smith
 
 Thomas Lander  2 May 2012 -
 
 Manuel Llobet
 
 Ian Postlethwaite 1 July 2004 -
 
 Ignace Goethals 
 
 Virinder Nohria 
The dates of appointment above refer to appointment  
as Directors of Allergy Therapeutics plc.
 
 directors on 30 June 2012.
The changes to Mr Smith’s, Mr Llobet’s and Mr Jensen’s 
 Remuneration Committee report. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 45 Directors’ report 
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 
 class of ordinary shares of 0.1 pence each, which each carry 
 Details of movements in the Company’s share capital during 
 schemes have no voting or other rights in respect of the 
 or conditional shares fully vest, at which time the shares rank 
pari-passu in all respects with shares already in issue.
 
Substantial shareholders
At 10 September 2012 the Company had been notiﬁed of the 

   
 
 
 

Changes to interest in own shares
 any shares in the Company.
The Board
Members Director since Meeting   
   attendance  
   2011-12
 
 
 Stephen Smith September 2004 15 / 15 
 
 
 
 Thomas Lander  May 2012 3 / 3
 
 Biographical details of all Board members are shown on  
 size of the Group, the roles of Company Secretary and  
 All Directors have direct access to the services and advice 
 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, 
 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:
 

     
 
 
 Alejandro Weinstein
2
 
 
 
 
 Thomas Lander  - - - - 
 
 Manuel Llobet
1
 
 

 
1
 
2
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Directors’ report 
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 
 terms of reference including formally delegated duties and 
responsibilities. The Chairman of each committee reports 
directly to the Board. 
 2012. Ignace Geothals stepped down on 30 June 2012. 
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 
auditors, reviewing the reports from the Auditors relating to 
the ﬁnancial statements and monitoring the internal control 
function.
The Remuneration Committee comprised Stephen Smith 
 Lander joining in May 2012. Ignace Goethals and Virinder 
 Committee reviews the compensation policy and strategy 
for the Group as a whole and the scale and structure of the 
 discussion of his own remuneration. This committee is also 
responsible for grant of shares under the Group’s Long  
 Weinstein during the year. Ignace Goethals stepped down  
on 30 June 2012. The Committee held one meeting during  
 
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.
 the Group’s remuneration policy are set out in the Directors’ 
 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  
 Shareholder relations
The Group maintains a policy of open dialogue with all 
shareholders to ensure that the objectives of the Group are 
 Director make regular presentations to stakeholders and 
discuss any areas of concern and meet regularly with analysts 
and major shareholders to provide information about the 
 shareholder presentations and investor information are 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 
 
of the Audit Committee.
In determining the policy, the Audit Committee has taken 
into account relevant ethical guidance regarding the provision 
 agree to the auditor providing a service if, having regard to 
 decisions for the Group, a mutuality of interest is created  
 
the Group.
Research and development
The Group will continue its policy of investment in research 
and development, with the focus being in Germany where 
 
the Group’s research and development are included in the 
 Going concern
The Group’s business activities, together with the factors 
likely to affect its future development, performance and 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Directors’ report 
 review on pages 32 to 35.
 Group’s objectives, policies and processes for managing its 
capital, its ﬁnancial risk management objectives, details of  
 for the foreseeable future, noting the new bank facility, 
 on the Group’s funding plans, the Directors continue to 
 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. During 
 were temporarily renegotiated, although less so than in the 
previous year. Shortly after the year end normal terms were 
resumed. Whilst the Company had no trade creditors, the 
number of trade creditor days for the Group at 30 June 2012 
 Dividend
Given the Research and Development costs 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.
Employment policies
Equal opportunities
 orientation, religion, gender, nationality, marital status or 

 
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 
 
or she has applied. Employees who become unable to  
 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 
 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 
 are monitored and improvements identiﬁed through periodic 
 Committee meets regularly to discuss issues and promote 
 monitoring safe working conditions. The Directors review  
 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.

 have elected to prepare the ﬁnancial statements in accordance 


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 

 select suitable accounting policies and then apply them    
 consistently;
 make judgments and accounting estimates that are    
 reasonable and prudent;
 
 
 in the ﬁnancial statements; © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Directors’ report 
 prepare the ﬁnancial statements on the going concern   
 basis unless it is inappropriate to presume that the Group   
 will continue in business.

 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.
In so far as each of the Directors is aware:
 there is no relevant audit information of which the Group’s  
 auditors are unaware; and
 the Directors have taken all steps that they ought to  
 have taken to make themselves aware of any relevant  
 audit information and to establish that the auditors are  
 aware of that information.
The directors are responsible for the maintenance and 
integrity of the corporate and ﬁnancial information included 
 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.
 directors have elected to prepare the ﬁnancial statements 
 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 
 select suitable accounting policies and then apply them    
 consistently;
 make judgments and accounting estimates that are  
 reasonable and prudent;
 
 been followed, subject to any material departures disclosed  
 prepare the ﬁnancial statements on the going concern basis  
 unless it is inappropriate to presume that the Company will  
 continue in business.
 
 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 
 safeguarding the assets of the Company and hence for taking 
reasonable steps for the prevention and detection of fraud and 
other irregularities.
In so far as each of the directors is aware:
 there is no relevant audit information of which the  
 Company’s auditors are unaware; and
 the Directors have taken all steps that they ought to  
 have taken to make themselves aware of any relevant audit  
 information and to establish that the auditors are aware of  
 that information.
The Directors are responsible for the maintenance and 
integrity of the corporate and ﬁnancial information included 
 governing the preparation and dissemination of ﬁnancial 
statements may differ from legislation in other jurisdictions.
Auditor
 the forthcoming Annual General Meeting.
By order of the Board on 14 September 2012
Ian Postlethwaite 
Company Secretary
14 September 2012
  © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Directors’ remuneration report
Directors’ remuneration report 
The Remuneration Committee
The Remuneration Committee comprised Stephen Smith 
 ﬁnancial year. The Committee held four meetings during the 
past 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-
 Members Member since Attendance at   
   meetings  
   2011-12
   
 
 

Remuneration policy
The Committee’s policy is to set remuneration packages for 
 of the highest calibre. Remuneration packages are designed 
 payments and awards of share-related compensation, which 
together constitute a potentially signiﬁcant proportion of the 
total remuneration opportunity.
 following elements:
(i) Basic salary
 account personal performance, and benchmarked against the 
Comparator Group.
(ii) Taxable beneﬁts
 and private medical insurance.
(iii) Share options
 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 
 share options in Allergy Therapeutics plc, on substantially the 
same terms.
(iv) Long Term Incentive Plan
During the year ended 30 June 2012 provisional shares 
were awarded to directors and senior management under 
 (v) SAYE Plan
During the year ended 30 June 2012 no offer was made to 
 (vi) Bonus
 
a performance-related cash bonus based upon individual 
performance and achievement of personal and corporate 
objectives. Annual bonus payments are capped under service 
 the Remuneration Committee in September each year for the 
preceding ﬁnancial year. 
 
(vii) Pension arrangements
 Service contracts

   
 Manuel Llobet 21 June 2012  12 months 

 
 
 
amended on 21 June 2012 to reﬂect the changes in his  
notice period to twelve months from the Company.  
 

   
 
 
 Stephen Smith 1 April 2012 3 months 
 Thomas Lander  2 May 2012 3 months 
 

  
 
 June 2012 to reﬂect a change in his notice period from 3 to 
 for work beyond his contractual four days per month when 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 50 Directors’ remuneration report
Directors’ remuneration (audited information)
Details of remuneration of those who served as directors during the year are set out below.
          
        Year ended 30 June 2011
 
  Basic Bonus Taxable Fees Total Pension 
  salary for the year beneﬁts 
  £ £ £ £ £ £
 
 Manuel Llobet 195,188 47,188 11,170 - 253,546 27,690 
 
 Ian Postlethwaite 152,542 39,160 10,782 - 202,484 15,254 
 
 Peter Jensen 65,000 - - - 65,000 - 41,500 - 
 
 Stephen Smith
1
 - - - 36,000 36,000 - 
 
 Alejandro Weinstein 36,000 - - - 36,000 - 
 
 Ignace Goethals 36,000 - - - 36,000 - 
 
 Virinder Nohria 36,000 - - - 36,000 - 
 
 Thomas Lander  6,000 - - - 6,000 - - -
 
 Totals 526,730 86,348 21,952 36,000 671,030 42,944
 
1 
Mr Smith’s fees are paid to SRS Business Enterprises Limited. 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 51 Directors’ remuneration report
Directors’ share options and LTIPs
           
 
 

 
 Executive Directors         
 
 Manuel Llobet
1

1
 
 
 Ian Postlethwaite 
 
 

1

1
 - -  1,320,000 - - -
 
 Non-Executive Directors        
 
 Stephen Smith 
 
 Ignace Goethals 
 
 Virinder Nohria 100,000 - - - 100,000 - 45.0 15/12/2003 15/12/2013 
      
 
 Totals 4,893,500 1,080,000 - 400,000 250,000 5,323,500   
 
1   

 
 
 Stephen Smith
Chairman, Remuneration Committee
14 September 2012 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 52 Nominations committee report 
Nominations committee report
 
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  Attendance 
  since at meetings  
   2011-12
   
 
 
 
 
 
 

 
When proposing appointments of directors, the Committee 
 a candidate possesses compared to the skill sets and 
 of candidates also takes into consideration the breadth of 
 provide a well-balanced environment which encourages 
 management.
 directors of paramount importance being a cornerstone 
of good corporate governance; as a result the Committee 
 directors. Its review is based on the seven principles of 
independence contained in the Combined Code against the 
practicalities for an AIM Company.

in particular Mr Stephen Smith’s position was discussed 
regarding his share options granted in 2005, as detailed 
on page 51, being contrary to one of the seven principles. 
The Committee judged that his contribution in the capacity 
 integrity and strength of character outweigh any potential 
conﬂict of interest that might arise from his share options to 
impede his independence. Mr Stephen Smith is therefore 

Director. 
The Committee’s principal focus during the year ended 30 
June 2012 was to review the skill sets and size of the Board 
 June 2012, and Thomas Lander was appointed on 2 May 

with two being independent.
Peter Jensen
 14 September 2012 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 53 Independent auditor’s report to the members of Allergy Therapeutics plc
We have audited the Group ﬁnancial statements of 
Allergy Therapeutics plc for the year ended 30 June 2012 
which comprise the consolidated income statement, the 
consolidated statement of comprehensive income, the 
consolidated balance sheet, the consolidated statement of 
 the related notes. The ﬁnancial reporting framework that 
has been applied in their preparation is applicable law and 

 This report is made solely to the Company’s members, 
 so that we might state to the Company’s members those 
 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
 responsible for the preparation of the group ﬁnancial 
statements and for being satisﬁed that they give a true  
 
an opinion on the group ﬁnancial statements in accordance  
with applicable law and International Standards on Auditing 
 
 
Standards for Auditors.
Scope of the audit of the ﬁnancial statements
A description of the scope of an audit of ﬁnancial statements 
 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 2012 and of its proﬁt for the year then ended; 
 
 Opinion on other matters 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:
 
 
to you if, in our opinion:
 certain disclosures of Directors’ remuneration speciﬁed  
 by law are not made; or
 
 Other matter
We have reported separately on the parent company  
ﬁnancial statements of Allergy Therapeutics plc for the  
year ended 30 June 2012.
Christian Heeger
Senior Statutory Auditor  
 
Statutory Auditor, Chartered Accountants  
Gatwick
14 September 2012
Independent auditor’s report to the members of Allergy Therapeutics plc (Group) © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com 54 Consolidated income statement
Consolidated income statement 
Consolidated income statement for the year ended 30 June 2012    
 
   
   Year to 30 June Year to 30 June Year to 30 June Year to 30 June 
   2012 2012 2011 2011 
   £’000 £’000 

      
 Revenue 3  41,280  41,552 
 
 Cost of sales   (13,670)
 
 Gross proﬁt   27,610 
 
 Distribution costs   (17,881) 
 (6,542) 
 Research and development costs  (2,095)
 
 (8,637) 
 -   210
 
 Operating proﬁt   1,092   115 
 
 5   2  
 (457)
 
 Proﬁt /(Loss) before tax 5   640 
 183
      
 Proﬁt/(Loss) for the period    823
 
 Earnings /(Loss) per share 13     
 0.25p 
 0.24p
      
 
Consolidated statement of comprehensive income
Consolidated statement of comprehensive income for the year ended 30 June 2012  
    
    Year to 30 June  Year to 30 June 
    2012  2011 
    £’000 
     
 823 (734)  235
 beneﬁt pension scheme 
 (431) of foreign operations 
 50    
 Total comprehensive income   (292) © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com 55 Consolidated balance sheet
Consolidated balance sheet 
Consolidated balance sheet    
   30 June 2012  30 June 2011 
 £’000
 
 Assets    
    
 7,555 
 Intangible assets – Goodwill 14 2,489
 2,107 
 2,569
 
 Total non-current assets  14,720
     
 Current assets    
 4,997 
 6,651 
 Cash and cash in hand 20 903  
 483 -
     
 Total current assets  13,034
     
 Total assets  27,754
     
 Liabilities    
 Current liabilities    
 Trade and other payables 21 (6,312) 
 Current borrowings 22 (1,426) 
 Derivative ﬁnancial instruments 24 (9)
     
 Total current liabilities  (7,747)
     
 Net current assets  5,287
     
 Non current liabilities    
 (4,717) 
 (97) 
 Derivative ﬁnancial instruments 24 (162) 
 (165) 
 (274)
     
 Total non current liabilities  (5,415)
     
 Total liabilities  (13,162)
     
 Net assets  14,592
 
 Equity    
 Capital and reserves    
 417 321 
 Share premium  67,571 
 Merger reserve – shares issued by subsidiary   40,128 
 Reserve – shares held by EBT  67 
 Reserve – share based payments  1,496 
 Reserve – convertible loan notes  3,652 - 
 Revaluation reserve  1,297 
 93 524 
 Retained earnings  (100,129)
     
 Total equity    14,592
 
 
These ﬁnancial statements were approved by the Board of Directors on 14 September 2012 and were signed on its behalf by
Manuel Llobet Ian Postlethwaite   

 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Consolidated statement of changes in equity
Consolidated statement of changes in equity   
   
 
 
    shares held in based  loan  reserve 
    issued by  EBT payments note 
    subsidary 

           
 
At 30 June 2010 321 58,704 40,128 67 1,323 - 1,381 (62) (97,976) 3,886
 
 
 on translation of foreign  
 
 
Actuarial gains         235 235 
 
 Valuation losses taken to  

 
 Total other  
 
 
 Loss for the period 

 
 Total comprehensive  
 
 
 
 
 Shares issued  1        1 
 
 Transfer of depreciation        
 
 
 Transfer of lapsed options 

 
 At 30 June 2011 321 58,705 40,128 67 1,398 - 1,287 524 (100,291) 2,139
           
 
 on translation of foreign  
 
 
 
 
 Valuation gains taken to  

 
 Total other  
 
 

 
 Total comprehensive  
 
 
Share based payments     131     131 
 
 
 
 Transfer of depreciation 
 
 
 Transfer of lapsed options  

 
 At 30 June 2012 417 67,571 40,128 67 1,496 3,652 1,297 93 (100,129) 14,592 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Consolidated cash ow statement
Consolidated cash ow statement    
   Year to 30 June 2012 Year to 30 June 2011 
   £’000

     
 Cash ows from operating activities    
 
 Proﬁt/ (Loss) before tax  640
 
 Adjustments for:    
 (5) 
 1,456 
 (999) 1,345 
 164 
 1,892 
 Gain on bargain purchase  - 
 Charge for share based payments  131 
 (1,280) 
 8 
 1,287 
 Decrease in inventories  272 
 Increase in trade and other payables  (642)
     
 Net cash generated by/ (used in) operations  2,924
 
 Interest paid  (51) 
 7
     
 Net cash generated by/ (used in) operating activities  2,880
     
 Cash ows from investing activities    
 Interest received  5 3 
 Investments  (311) 
 - 
 (829) 
 (432)
     
 Net cash used in investing activities  (1,567)
 
 Cash ows from ﬁnancing activities    
 12,614 1 
 Repayment of borrowings  (22,623) 
 7,680 
 Bank loan fees and interest paid  (406)
     
 Net cash (used in)/ generated by ﬁnancing activities  (2,735)
     
 (1,422) 
 (35) 
 1,048 4,520
     
 Cash and cash equivalents at the end of the period  (409)
 
 
 Cash at bank and in hand  903 
 (1,312) -
  
 Cash and cash equivalents at the end of the period  (409) © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
Notes to the ﬁnancial statements
1. Basis of preparation
The Group’s ﬁnancial statements have been prepared in 
 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 
 The consolidated ﬁnancial statements for the year ended  
 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 14 September 2012.
New standards adopted 
 
for the ﬁrst time in this ﬁnancial period that have had a 
material impact on the Group. 
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 2012 ﬁnancial 
statements
At the date of authorisation of these ﬁnancial statements, 
certain new standards, amendments and interpretations 
 The Group has not adopted any of these pronouncements 
early. The new standards, amendments and interpretations 
 statements are as follows:
IFRS 9 Financial Instruments (effective 1 January 2015)
 
for users of ﬁnancial statements by simplifying the 
 instruments. Management are currently assessing the  
detailed impact on the Group’s ﬁnancial statements. 
IFRS 10 Consolidated Financial statements  
(effective 1 January 2013)
 
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)
 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)
 
in fair value measurements and related disclosures through  
a ‘fair value hierarchy’.
IAS 19 (Revised June 2011) Employee Beneﬁts  
(effective 1 January 2013)
 
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)
 
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 
 statements. 
 
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  
 
may be ‘recycled’ (e.g. cash-ﬂow hedging, foreign  

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. 
 
 
on the Group’s ﬁnancial statements.
Going concern
 the Group has reported an operating proﬁt and an operating 
 The Group has prepared detailed budgets, including cash  
ﬂow projections, for the periods ending 30 June 2013 and 
30 June 2014. These projections include assumptions on 
the trading performance of the operating business and the 
 
 for the foreseeable future and the effects of sales and other 
sensitivities on the Company’s funding plans, the Directors 
 foreseeable future and accordingly have applied the going 
concern principle in drawing up the ﬁnancial statements.  © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to 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 2012. 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 
 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 purchase method of accounting for 
 instruments issued and liabilities incurred or assumed at the 
 and contingent liabilities assumed in a business combination 
 Business Combinations, are recognised at their fair values 
 over the fair value of the Group’s share of the identiﬁable net 
 
the proﬁt or loss.
Inter-company transactions, balances and unrealised gains 
and losses on transactions between Group companies are 
 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 
 
an intangible asset at cost and is subject to impairment  

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
 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 

a business combination are reported at cost less accumulated 
amortisation and accumulated impairment losses.
Internally generated intangible assets
An internally generated intangible asset arising from 
 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.
 resources to complete the development and to use or  
 sell the intangible asset.
 
 to the intangible asset during its development.
The amount initially recognised for internally generated 

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 
 
which it is incurred.
 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.  © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
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 
 
 
 
 
   period of contract 
  

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 
 a specialised marketing approach. A 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  
 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 
 is Sterling, which is also the functional currency of the  
Group’s parent.
 
Transactions and balances
 
 
 
and losses resulting from the settlement of such transactions 
 rates, of monetary assets and liabilities denominated in  
foreign currencies, are recognised in the proﬁt and loss.  
 
 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  
 
 recognised in other comprehensive income and  
 
 
 
 income and accumulated in a separate component  
 differences.
 
Income 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  
 
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 
though licensees and distributors.
 time of delivery and title to the product passes upon full and  © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
ﬁnal settlement of the invoice to which the delivery relates. 
The licensee has full discretion over the setting of the ﬁnal 
 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 
 on an accruals basis as the licensee books the sale to the end 
 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 
 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  
 Expenditure recognition
 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 
 are capitalised during the period of time that is necessary to 
complete and prepare the asset for its intended use or sale. 
 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 
 year after each valuation. 
 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 
 under the heading of revaluation reserve. When an item of 
 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.

accumulated depreciation and accumulated impairment losses. 


straight line basis principally using the following annual rates:
 
 Buildings  33 years 
 
 
 
 Motor vehicles  4 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 
 be recoverable. An asset’s carrying amount is written down 
immediately to its recoverable amount if the asset’s carrying 
 to sell or value in use.
Assets under course of construction are capitalised but not 
 to the relevant heading and depreciated accordingly.
 income statement.
Impairment
The Group’s goodwill, other intangible assets, freehold 
 impairment testing.
 at the lowest levels for which there are separately identiﬁable 
 synergies of the related business combination and represent 
the lowest level within the Group at which management 
controls the related cash ﬂows.  © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
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.
An impairment loss is recognised for the amount by which 
 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  
 
 
 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 
 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  
 
reﬂected in the standards.
 
from sale in the normal course of business less any  
costs to sell.
Leases
 over the term of the lease. There are no ﬁnance leases.
Financial assets
 to their different categories by management on initial 
recognition, depending on the contractual arrangements.
 deposits and overdrafts, together with other short-term, highly 
 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, 

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 
 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 derivatives. 
 
a party to the contractual agreements of the instrument.  
 
 Trade and other payables are recognised initially at their fair 
 
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 
 effective interest rate method.
Convertible loan notes
Convertible loan notes are regarded as compound instruments 
 At the date of issue the fair value of the liability component 
 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 
 
Derivative ﬁnancial instruments
The Group uses interest rate swaps, Euro forward contracts 
 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 
 
each reporting date. Any change in the fair value of the 
instruments is recognised in the proﬁt and loss.
Equity
 shares that have been issued. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
 
 
 
 
 
 
 
 employees. These shares are deducted from shareholders  
 
 proceeds received from the issue of these shares through  
 
 reserve. 
 
 settled share-based employee remuneration until such  
 
 component of consideration received for convertible loan  
 
 investment assets and land and buildings.
 
 currency translation differences that have occurred since    
 
 are included within retained earnings.
 
in the assets of the Group after deducting all its liabilities. 
Income taxes
 obligations to ﬁscal authorities in the countries in which the 
Group carries out its operations. They are calculated according 

 
the income statement.
 provided on the difference between the carrying amounts of 
 on the initial recognition of an asset or liability unless the 
 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 

 probable that the underlying deductible temporary differences 
 
 
 period of realisation, provided they are enacted or 
substantively enacted at the balance sheet date.
 
 
credited directly to other comprehensive income (such as  

 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 
 
 
over the average period until the beneﬁts become vested. 
 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. 
 
it is recoverable by the Group.
The current service cost, past service cost and costs 
from settlements and curtailments are charged against 
 
 
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 
 Investments
Investments relate to long-term insurance policies that  
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
 
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. © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
 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
 plans for remuneration of its employees including Save As You 
 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 
 includes an adjustment based on the probability of the shares 
vesting at the end of the vesting period. 
 
 All share based compensation is ultimately recognised  
 
a corresponding credit to the share based payments reserve, 
 
over the vesting period, based on the best available  
 


if there is any indication that the number of share options 
 
 
 
than estimated.
 
net of any directly attributable transaction costs, up to the 
nominal value of the shares issued are allocated to share 
 Employee Beneﬁt Trust
The ﬁnancial statements include the assets and liabilities  
of a trust set up for the beneﬁt of the Group’s employees.  
 Company and these are deducted from the shareholders’ 
 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, 
 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
 
 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  
 
 Income statement as research and development  
 Land and buildings were not revalued to fair value at the  
 reporting date as management determined that the  
 effect of the changes in market prices between the dates  
 of revaluation and the reporting dates were immaterial.
 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  
 
 same time in contemplation of one another.
Sources of estimation uncertainty
 Depreciation rates are based on estimates of the  
 useful lives and residual values of the assets involved.
 
 
 impairment charges.
 
 estimation of the value in use of the cash generating unit  
 to which the goodwill has been allocated. This value in  
 
 
 and a suitable discount rate in order to calculate the  
 present value.
3. Revenue
An analysis of revenue by category is set out in the table 
below:
  2012 2011 
  £’000
 
 Sale of goods 40,317 40,445 
 
 Royalties 963
 
  41,280 41,552
There were no milestone payments in either the current or 
previous year. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
Revenue by Segment
 
 
  Revenue from  Inter Segment Total Revenue from  Inter Segment Total 
  External Customers Revenue Segment 
    Revenue   Revenue 
  2012 2012 2012 2011 2011 2011 
  £’000 £’000 £’000
 
 Central Europe       
 Germany 25,407  25,407 
 5,617  5,617
  
  31,024  31,024
 
 Southern Europe 6,180  6,180 
 1,509 33,861 35,370 
 2,567  2,567
 
  41,280 33,861 75,141
 
 
 
from the sale of a range of pharmaceutical products designed  
for the immunological treatment of the allergic condition. 
 
through several world-wide markets including Czech and Slovak  
 Inter-segment revenues represent sales of product from the  
 
basis which is eliminated on consolidation.
 
currency basis to provide relevant year on year comparisons.
4. Segmental reporting
The Group’s operating segments are being reported  
based on the ﬁnancial information provided to the  

 
and make strategic decisions. 
 sectors and assesses performance at an EBITDA (operating 
 operating proﬁt level. Management have identiﬁed that the 
reportable segments are Central Europe (which includes the 
following operating segments; Germany, Austria, Switzerland 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
The following revenue table is based on a constant currency rate  
  
 
 
  Revenue from External Customers 
  2012 2011 
  £’000
 
 Central Europe   
 Germany 24,331 
 5,180
 
  29,511 
 Southern Europe 5,814 
 1,509 
 2,686
 
  39,520
 
 
 Depreciation and Amortisation by Segment 2012 2011 
  £’000
 
 Central Europe 119 
 Southern Europe 89 
 1,684 1,531
 
  1,892 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
EBITDA by Segment 
  2012 2011 
 Allocated EBITDA £’000
 
 Central Europe (1,029) 
 Southern Europe 372 
 3,641
 
 Allocated EBITDA 2,984 
 Depreciation and amortisation (1,892)
 
 1,092 115 
 5 2 
 (457)
 
 Proﬁt/(Loss) before tax 640
 
  
  2012 2011 
 Total assets by Segment  £’000
 
 Central Europe 8,386 
 Southern Europe 3,963 
 35,220
 
  47,569
 
 Inter-Segment Assets (1,958) 
 Inter-Segment Investments (17,857)
 
 Total Assets per Balance Sheet 27,754
 
 
  2012 2011 
 Total liabilities by Segment £’000
 
 Central Europe (8,227) 
 Southern Europe (2,150) 
 (4,743)
 
  (15,120)
 
 Inter-Segment Liabilities 1,958
 
 Total Liabilities per Balance Sheet (13,162)
 
 
5. Proﬁt/ (Loss) before tax
  2012 2011 
 Proﬁt/ (Loss) for the period has been arrived at after charging: £’000
  
 808
  
 Depreciation and amortisation:   
 1,506 1,355 
 386 343 
  
 Research and development 2,095
  
 
 18,394
  
 Land and buildings held under operating leases  439 
 533 503 
  
 Audit and non-audit services:   
 21 21 
 
 The audit of the Company’s subsidiaries pursuant to legislation 67 54 
 9 3 
 99 
 
 131 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
6. Remuneration of key management personnel
 
  2012 2011 
  £’000
 
 Salaries and short-term employee beneﬁts 677 1,044 
 Social security costs 70 
 Severance payments - 31 
 - 22 
 43 50
 
  790 1,245
 
 (6) - 
 Share based payment 58
 
  842
 
 
 
 
 
7. Employees
  
  2012 2011 
  £’000
 
 Wages and salaries 15,423 
 Social security costs 2,366 
 Share based payments 131 
 240 
 234
 
  18,394
 
 
 
 
 
  2012 2011
 
 R & D, marketing and administration 120 125 
 Sales 87 
 151
  
  358 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
8. Other income
 
  2012 2011 
  £’000
 
 Ga 
 Contribution from third party - 24
  
  - 210
 
 
 
 
 
The contribution from the third party in the prior year relates to  the construction of a manufacturing facility  
which commenced in the year ended 30 June 2010. 
 
 
9. Finance expense 
  
  2012 2011 
  £’000
 
 Interest on borrowing facility 1,368 1,342 
 Change in fair value of ﬁnancial derivative instrument (214) 
 212 
 90 1
  
  1,456 
 
 (999) 1,345
 
  457 2,430
 
 
 
facility caused by the movement  of the Euro against Sterling throughout the year.
 
 
10. Finance income 
 
  2012 2011 
  £’000
 
 Bank interest 5 2
 
 
 
11. Income tax expense 
 
  2012 2011 
  £’000
 
 Current Tax:   
 (440) 
 270
 
  (170) 
 (13)
 
 (183) © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
 
  
  2012 2011 
  £’000
 
 640 
 163 

   
 Effects of:    
 Disallowable adjustments 125 
 74 
 14 23 
 adjustments and movements 
 (263) 
 (46) 
 312 
 213 -  
 (108) 
 (654)
 
  (170) 
 (13)
 
 (183)
 
 
12. Deferred tax
 
 Recognised deferred tax liability
 
  2012 2011 
  £’000
 
 At 1 July 201 - 
 - 
 Released in the period (13) 
 (23)
 
 At 30 June  165 201
 
  
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
Unrecognised deferred tax
 
  2012 2012 2011 2011 
  Deferred tax assets Deferred tax liabilities 
  £’000 £’000 
 Non Current Assets     
 - (504) 
 Derivative ﬁnancial instruments - (116) - - 
  
 Current Liabilities     
 Derivative ﬁnancial instruments 2 - 
  
 Non Current Liabilities     
 708 - 535 - 
 Derivative ﬁnancial instruments 39 - 
 Share options 91 - 
 16,523 - 
  17,363 (620) 
 (620) 620      
 Total 16,743 - 
 
 
 
 
 
 13. Earnings /(Loss) per share
   2012  2011 
   £’000 
 823   
   Shares  Shares 
   ‘000  ‘000
   
 Issued ordinary shares at start of the period  310,772 
 96,141  15 
 Issued ordinary shares at end of the period  406,913 
 
 Weighted average number of shares in issue for the period  326,795 
 13,256 
 Weighted average number of shares for diluted earnings per share 340,051  323,354
   
 0.25p 
 0.24p 
 
 
of share options would have the effect  of reducing the loss per share and is therefore not dilutive under the  
terms of IAS 33. © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
14. Goodwill
 
  2012 2011 
  £’000
 
 At 1 July 2,624 
 (135)
 
 At 30 June 2,489
 
 
 
 
 
  2012 2011 
  £’000
 
 Germany 2,489
 
 
 
 
 
 
input for forecasting this mature market.
 
management is not currently aware of any other probable changes that would necessitate changes in its key estimates. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
15. Intangible assets
 
 
  know-how know-how  software 
 
 Cost      
 
 
 
      
 
 
 
      
 At 30 June 2012 1,000 3,467 2,733 1,884 9,084
     
 Amortisation      
 
 
      
 
 Asset reclassiﬁcation - - - 25 25 
 
 
 At 30 June 2012 933 3,467 1,122 1,455 6,977
      
 Net book value      
 
      
 At 30 June 2012 67 - 1,611 429 2,107
 
 
 
 
 
 
 
agreements be terminated. © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
16. Property, plant and equipment 
 
 
 
 

 
 Cost or valuation        
 
 
 
 
 

 

        
 
 
 

        
 At 30 June 2012 7,646 4,782 36 2,846 - 1,258 16,568
        
 Depreciation        
 
 
 

 

        
 
 
 

        
 At 30 June 2012 3,780 3,215 34 1,887 - 97 9,013
        
 Net book value        
 

        
 At 30 June 2012 3,866 1,567 2 959 - 1,161 7,555
 
 
 
There are no assets under construction as at 30 June 2012. 
 


then adjusted for speciﬁc conditions relating to the land and buildings.
The land and buildings were not revalued to fair value at the reporting date as management determined that the effect of changes 
in market prices between the date of revaluation and reporting dates were immaterial.

for distribution to the shareholders of the Group. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
17. Investments
 
The Group carries an insurance policy which is designed to contribute towards the obligation in respect of the deﬁned  
 
 
  2012 2011 
  £’000
 
 At 1 July 2,493 
 Additions 311 
 50 
 (285) 234
  
  2,569
 
 
 
18. Inventories 
 
  2012 2011 
  £’000
 
 Raw materials and consumables 2,018 
 Work in progress 2,823 3,134 
 1,810
 
  6,651
 
 
 
 
 
 
 
 
19. Trade and other receivables 
 
  2012 2011 
  £’000
 
 Trade receivables 3,107 
 542 
 VAT 112 130 
 1,236 1,033
 
  4,997
 
 

of fair value. All trade and other receivables have been reviewed for indicators of impairment. During the year, none of the provision 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
 Bad and doubtful debt provision 2012 2011 
  £’000
 
 Balance b/f 79 
 (15) 
 Charge for the year (10) 
 - 
 
 Balance c/f 54
 
 
 
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The Directors consider that  
 
but not impaired is as follows: 
 
 The ﬁnancial assets which were overdue but not provided for were: 2012 2011 
  £’000
 
 Trade receivables   
 551 515 
 465 
 112 
 More than one year  158 3
 
  1,286
 
 
 
20. Cash and cash in hand 
 
  2012 2011 
  £’000
 
 Cash at bank and in hand 903
 
 
21. Trade and other payables 
   
  2012 2011 
  £’000
 
 Trade payables 2,553 
 682 
 136 
 2,941
 
  6,312 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
22. Borrowings 
 
  2012 2011 
  £’000
 
 Due within one year   
 Loans - 
 Convertible loan note 114 - 
 1,312 -
  
  1,426
   
 Due after more than one year   
 Loans - 
 Convertible loan note 97 -
 
  97
 
 
The loans in the previous year were repaid in full during the year. All outstanding fees and interest relating to the facility  
and previously held on the balance sheet have been charged to the proﬁt and loss account.
 
 
 

 
term, half of which is due one year from the date of issue.
 
23. Provisions 
 
 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. 
 
  2012 2011 
  £’000
 
 At 1 July 283 
 Additions 42 43 
 (20) 
 (31)
 
 At 30 June 274 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
24. 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  
 
share issues and facility loan arrangements. Capital management objectives are met through regular reviews of cash  
ﬂows, debtor/creditor balances, budgets and forecasts.
 
  2012 2011 
  £’000
 
 14,592 
 (903)
 
 Capital 13,689
   
 14,592 
 Borrowings 1,523 15,154
 
 16,115
   
 Capital-to-overall ﬁnancing ratio 0.85
 
 
 
they are shown are as follows:
 
 
Categories of ﬁnancial instrument
  
  2012 2011 
  £’000
 
 Financial assets   
 Current   
 4,663 
 483 - 
 1,236 1,033
 
  6,382
   
 Financial liabilities   
 Current   
 (4,293) 
 (9) 
 (3,445) 
 Non current   
 (372) 
 (162) 
 (165)
  
  (8,446) © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
Derivative ﬁnancial instruments
 
 
by reference to market rates and supported by counterparty conﬁrmation. 
Interest rate swap
Although management consider the interest rate swaps as an effective hedging tool they are not formally designated as such.  
 
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 €

Euro exchange swap
 €
September 2012. Within the fair value hierarchy, this ﬁnancial derivative is classiﬁed as level 2.
 
 Analysis of Derivative Financial Instruments  2012 2011 
  £’000
 

 (3) 
 1 - 
 Euro forward contacts - held for trading 1,282 
 Euro forward contracts - matured in the period 51
   
  1,331
   
 Interest rate swap - held for trading 214 454 
 Interest rate swap - charges in the period (278)
 
  (64)
 
 
 formally designated as such.
 
 Derivative Financial Instruments  2012 2011 
  £’000
 
 Current Assets   
 Derivative ﬁnancial instruments  
 - Euro forward contracts - held for trading 483 -
    
  483 -
   
 Current liabilities   
 Derivative ﬁnancial instruments  
 9 
 - Euro forward contracts - held for trading -
    
  9
 
 Non current liabilities   
 Derivative ﬁnancial instruments  
 - Interest rate swap – held for trading 162
 
  162
 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
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 
 
 
The Group carries bank balances in the following currencies:
 
  2012 2011 
  £’000
 
 Sterling (1,263) 
 Euro 706 
 33 
 Canadian dollars - 5 
 Swiss franc 80 40 
 Slovak krona 10 
 - 1 
 Argentinean peso 25 -
 
  (409)
 
  2012 2012 2012 2011 2011 2011 
  Sterling Euro Other 
  £’000 £’000 £’000
       
 344 3,935 867 
 (2,709) (1,305) (288)
       
 (2,365) 2,630 579
       
     
 - - - - - - 
 (97) (437) -
       
 (97) (437) -
 
 
 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
  2012 2011 
  £’000
 
 If Sterling had strengthened against the Euro by  10% 
 1,674 
 (419)
    
  1,255
    
 
 If Sterling had weakened against the Euro by 10% 
 (1,796) 
 512
 
  (1,284) 430
Interest rate risk
 rate on the borrowing facility. The loan was repaid in April 2012. The overdraft facility is tailored in such a way as to give greater 
 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.
 
  2012 2012 2011 2011 
  £’000 £’000   
  + 1% - 1%  
 Net results for the year (43) n/a  
 Equity - n/a - n/a
 
  (43) n/a  
 
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  
 
value of the outstanding amount.
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
Liquidity risk
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern, and to provide 
 
 
as they fall due. As at 30 June 2012 the Group’s contractual maturities are summarised as follows:
 
 Current liabilities 2012 2012 2011 2011 
  £’000 £’000 
  Within 6 months 6 to 12 months  
 Borrowing facility - principal 1,312  
 Borrowing facility - interest and other charges 2 - 
 Convertible loan note - interest and other charges - 114 - - 
 Trade payables 2,867 - 
 3,445 -     
  7,626 114 
 Derivatives 9 - 
  7,635 114 
  
 Non-current liabilities 2012 2012 2011 2011 
  £’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 - - - 
 275 -     
  372 - 14,031 - 
 Derivatives 162 - 
  534 - 
 
There is no material difference between the fair values and the carrying values of these ﬁnancial instruments. © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
25. Operating lease commitments
 
The following payments are due to be made on operating lease commitments: 
  Land & buildings Land & buildings Other  
  2012 2011 2012 2011 2012 2011 
  £’000 £’000 £’000
       
 Within one year 454 485 400 
 Two to ﬁve years 1,354 1,628 587 
 411 621 -
 
  2,219 2,734 987
 
 
 
 
 
 
 26. Retirement beneﬁt obligations
Deﬁned contribution scheme
 
are held separately from those of the Group in an independently administered fund. The amount charged against the proﬁts 
 Deﬁned beneﬁt scheme
The Group operates a partly funded non-contributory deﬁned beneﬁt pension scheme for certain employees in Germany. The actuarial 

    
  2012 2011 
  % pa
    
 Retail price inﬂation 1.5 1.5 
 Salary increase rate 3.0 4.0 
 Rate of pension increase 1.5 1.5 
 Discount rate at the beginning of the year 5.0 5.0 
 Discount rate at the end of the year 4.0 5.0 
 3.5 
 Increase of social security contribution ceiling 3.0
 
 Years Years 
 18.6 
 22.7 
 Male, 45 years of age at the balance sheet date 38.8 
 43.9
 
 The assets in the scheme and the expected rates of return were as follows: 2012 2011 
  £’000
    
 1,196 
 (5,913)
    
 Deﬁcit in the scheme (4,717)
    
 (4) 
 (88) 241 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
The plan assets consist of long-term insurance policies held to cover the German pension obligation. The value of the plan  
 
 
is unrecognised in the Group accounts as there is uncertainty over the recoverability.
 
 
    
  2012 2011 
  £’000
    
 Amounts charged to operating proﬁt  
 Current service costs 240
    
 Amounts included in other ﬁnance expenses 
 (48) 
 Interest on pension scheme liabilities 259 243
 
 211
    
 Amounts recognised in the other comprehensive income   
 (4) 
 (88) 241 
 Changes in assumptions underlying the present value of scheme liabilities (642) -
 
 Total amount relating to year (734) 235 
 (911
 
 Actuarial loss recognised (1,645)
    
 (1,645)
 
 
 Movement in assets during the year 2012 2011 
  £’000
 
 Balance as at 1 July 1,275 
 (136) 120 
 48 
 Actuarial losses (4) 
 Contributions from employer 57 
 Assets transferred to ﬁnance beneﬁts paid (44)
 
 Balance as at 30 June 1,196
 
 
 Movement in liabilities in the year 2012 2011 
  £’000
 
 Balance as at 1 July (5,389) 
 644 
 Service cost (240) 
 Interest cost (259) 
 (88) 241 
 Beneﬁts paid by employer 17 
 Beneﬁts paid from assets 44 42 
 Changes in assumptions (642) -
 
 Balance as at 30 June (5,913) © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
History of retirement beneﬁt obligation
 
  2012 
  £’000 
 1,196 
 (5,913)     
 Scheme deﬁcit (4,717) History of experience gains and losses       
   
  2012 2012  
  % £’000
 
 Scheme assets           
 Difference between (0.3) (4) 
 
 actual return 
           
 Scheme liabilities           
 (1.4) (88) 

 
 Changes in (642) 
 assumptions  
 underlying 
 present value
           
 Total amount  (11.5) (734) 
 recognised  © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
27. Issued share capital 
  2012 2012 2011 2011 
  Shares £’000  
 Authorised share capital     
 
 1 July and 30 June 790,151,667 790 
 Deferred shares of 0.10p each     
 1 July and 30 June 9,848,333 10    
 Issued and fully paid     
 
 At 1 July  310,771,614 311    
 Issued during the year 96,141,367 96 15,000 -
     
 At 30 June 406,912,981 407     
 Issued and fully paid     
 Deferred shares of 0.10p     
 At 1 July  9,848,333 10 
 Issued during the year -  - -
     
 At 30 June 9,848,333 10     
 Issued share capital 416,761,314 417 
 
The deferred shares have no voting rights, dividend rights or value attached to them.
 
 
 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
28. Share based payments

 
 
 provisional awards of performance vesting shares. The number of shares that vest depends on the Group’s performance during 
 

less than three consecutive ﬁnancial years. Awards are 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 

  2012 WAEP 2012 WAEP 
  Number Price (£) 
 4,650,730 0.16 
 Granted during the year - - - - 
 -  - 
 (2,182,240) 0.17 
 Cancelled during the year - - - - 
 2,468,490 0.16 
 2,362,304 0.16 
 
 
   30 June 2012  30 June 2011 
 Exercise price (p)  Number 
 0.1-5  1,614,700  3,025,000 
 825,224 
 28,566 
   2,468,490 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
 
 
    
  30 June 2012 30 June 2011 
  Number
 
 7,944,000 
 Awarded during the year 4,725,000 4,320,000 
 (1,882,000) 
 Cancelled during the year - 
 10,787,000
 
 
 
a vesting probability for the market performance conditions. The assumptions made to value shares awarded were as follows:


 
 
 
 
 
 

 
 
 during the year. 
29. Contingent liabilities
 
 € € Allergy Therapeutics Italia s.r.l. and Allergy Therapeutics Iberica S.L. in which the liabilities of each entity to the Royal Bank of 
 30. 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 2012 30 June 2011 
  £’000
 
 Capital commitments 148
 
 

  © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the ﬁnancial statements
31. Related party transactions
Allergy Therapeutics plc’s related parties include its subsidiary companies and its key management.
 
 
 At 30 June 2012, the Company’s subsidiary undertakings were:
 

  incorporation  of shares held shares held
 
 Allergy Therapeutics  

     and deferred
 
 

 

 

 

 

 

 

 

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 Sales of goods Amounts owed Amounts owed 
    by related parties by related parties
  2012 2011 2012 2011  
  £’000 £’000
 
 Laboratorios Synthesis S.A.S. 29 - 4 - 
 Gynopharm de Venezuela C.A. 6 - 6 - 
 Laboratorio Internacional Argentino S.A. 24 - 27 -
 
 Total 59 - 37 -
 
 
Laboratorios Synthesis S.A.S., Gynopharm de Venezuela C.A. and Laboratorio Internacional Argentino S.A.  
 Sales of goods to related parties were made at the Group’s usual list prices on the Group’s normal trading terms.
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Independent auditor’s report to the members of Allergy Therapeutics plc
We have audited the parent company ﬁnancial statements 
of Allergy Therapeutics plc for the year ended 30 June 2012 
which comprise the parent company balance sheet and the 
related notes. The ﬁnancial reporting framework that has 
 This report is made solely to the company’s members, 
 that we might state to the company’s members those matters 
 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
 for the preparation of the parent company ﬁnancial statements 
and for being satisﬁed that they give a true and fair view.  
 
the parent company ﬁnancial statements in accordance  
with applicable law and International Standards on Auditing 
 
 
Standards for Auditors.
Scope of the audit of the ﬁnancial statements
A description of the scope of an audit of ﬁnancial statements 
 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 2012; 
 
 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 
 
if, in our opinion:
 
 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
 
 Other matter
We have reported separately on the group ﬁnancial 
statements of Allergy Therapeutics plc for the year  
ended 30 June 2012. 
Christian Heeger
Senior Statutory Auditor  
 
Statutory Auditor, Chartered Accountants  
Gatwick
14 September 2012
Independent auditor’s report to the members of Allergy Therapeutics plc (Company) © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Company balance sheet
Company balance sheet 
   30 June 2012  30 June 2011 
 £’000
 
 Fixed assets
 Investments 3 1,276 1,444
     
 Current assets    
 Debtors: amounts falling due within one year 4 332 
 Creditors: amounts falling due within one year 5 (114) -
     
 Net current assets  218
 
 Total assets less current liabilities  1,494 
 (97) -
     
 Net assets  1,397
 
 Capital and reserves    
 417 321 
 67,571 
 Other reserves – Convertible loan note   3,652 -
   
 67 
 1,496 
 (71,805)
     
 Total equity    1,397
 
 
These ﬁnancial statements were approved by the Board of Directors on 14 September 2012 and were signed on its behalf by: 
 
 
 
 
 
Manuel Llobet Ian Postlethwaite   
 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the Company balance sheet
Notes to Company balance sheet
1. Accounting policies
Basis of preparation
The separate ﬁnancial statements of the Company  
 
As permitted by that Act, the separate ﬁnancial statements 
 
cost convention. 
Going concern
 
 
 research and development activities, it reported losses.  
 facilities and cash generated by the operating business. 
The Group has prepared detailed budgets, including cash  
ﬂow projections, for the periods ending 30 June 2013 and 
30 June 2014. These projections include assumptions on 
the trading performance of the operating business and the 
 
 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 
 
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  
 Monetary assets and liabilities denominated in foreign 
 
ruling at the balance sheet date and the gains or losses  
on translation are included in the proﬁt and loss account.
Deferred taxation
 of all timing differences, in the following year, between 
 purposes, which have arisen but not reversed by the balance 
 Employee Beneﬁt Trust (EBT)
The ﬁnancial statements include the assets and liabilities  
of a trust, set up for the beneﬁt of the Company’s employees. 
 Company and these are deducted from shareholders  
 of options are recognised through this reserve. There are no 
shares remaining in the EBT.
Share based payments
 
 
but no cash-settled share based payments. All share based 
 statements of the subsidiary which receives the goods or 
 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. 
 
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 

If vesting periods or non-market based vesting conditions 
 
based on the best available estimate of share options 
 
there is any indication that the number of share options 
 cumulative adjustment prior to vesting is recognised in  
the current period. 
 
is allocated over the relevant period, usually the period  
over which performance is measured. Vesting assumptions  
 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

 
in these ﬁnancial statements. The Company’s loss for the 
 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the Company balance sheet
3. Investments
  Shares in subsidiary undertaking 
  £’000
 
 Cost  
 Investment brought forward  1,444 
 Additions 130 
 Intercompany provision (298)
 
 Investment carried forward 1,276
At 30 June 2012 the Company’s subsidiary undertakings were:
 

  incorporation  of shares held shares held
 
 
     and deferred
 
 

 

 

 

 

 

 

 

 
 
 
 
 
 
 4. Debtors 
 
  30 June 2012 30 June 2011 
  £’000
    
 Amounts falling due within one year   
 Amount owed by subsidiary undertakings 318 
 14
 
  332
 
 
 © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Notes to the Company balance sheet
5. Creditors – amounts falling due within one year 
 
  30 June 2012 30 June 2011 
  £’000
 
 Convertible loan note interest 114 -
 
 
 
6. Creditors – amounts falling due after one year 
 
  30 June 2012 30 June 2011 
  £’000
 
 Convertible loan note interest 97 -
 
 
 
7. Called up share capital 
 
 . 
 
 
8. Reserves 
 
   Proﬁt and loss account £’000
 
 
 
 Lapsed share based payments transferred to retained losses  33
  
 At 30 June 2012  (71,805)
 
 
   Share premium account £’000
 
 
 

 
 At 30 June 2012  67,571
  
 
   Other reserve – share based payments £’000
 
 
 

 
 At 30 June 2012  1,496 © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes to the Company balance sheet
   Other reserve – EBT £’000
 
  
 Sale of shares by EBT  -
  
 At 30 June 2012  67
 
 
   Other reserve – Convertible Loan Note £’000
 

  
 At 30 June 2012  3,652
 
 
9. Share based payments
 
 10. Directors’ emoluments
 11. Reconciliation of movement in shareholders’ funds
  Year to 30 June 2012 Year to 30 June 2011 
  £’000
 
 (13,523) 122 
 Issue of shares from EBT - - 
 Share based payments 131 
 Shares Issued  8,962  1 
 Convertible loan note issued  3,652 - 
 (778) 
 2,175
 
 Closing shareholders’ funds 1,397
12. Contingent liabilities
 13. Related party transactions
 
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 31 to the consolidated ﬁnancial statements. © Allergy Therapeutics plc Annual Report & Accounts 2012  www.allergytherapeutics.com www.pollinex.com Shareholder information
Shareholder information
Registered Ofﬁce
Dominion Way
Worthing
 Advisers
 1 Carey Lane
London
 Auditor
 Manor Royal
 Lawyers
Reed Smith
The Broadgate Tower
 London
EC2A 2RS 
 London
 Actuary
 Swiss Life Gruppe
 Germany
 
Registrars
Capita IRG plc
The Registry
34 Beckenham Road
Beckenham
 Bankers
 South East Corporate Centre
 
Public Relations Advisers
 London
 Patent Attorneys
D Young & Co
 London
 Trademark Attorneys
 Sardinia Street
 London
WC2A 3LZ
Arabellastrasse 4
 Germany © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com Notes: Allergy Therapeutics has a long-term commitment to 
research and in particular development of innovative 
therapies for both the treatment and prevention of 
allergy-related conditions. 
© Allergy Therapeutics plc Annual Report & Accounts 2012   www.allergytherapeutics.com www.pollinex.com  © Allergy Therapeutics plc Annual Report & Accounts 2012 www.allergytherapeutics.com www.pollinex.com  www.allergytherapeutics.com 
www.pollinex.com
Allergy Therapeutics plc 
 Dominion Way
Worthing