Notes to the financial statements
at 31 March 2009

Notes 13-19

13 Investments in associates

Group and Company	2009 £m	2008 £m
Balance at 1 April	0.9	1.2
Share of loss	(0.6)	(0.3)
Transfer to trade investments	(0.1)	–
Transfer of sales proceeds to other receivables	(0.2)	–
Balance at 31 March	–	0.9

PharmaKodex Limited
PharmaKodex Limited was a 20.4% associated company until February 2009. Losses of the company have been consolidated until that date. PharmaKodex Limited was sold to Orexo AB in February 2009.

14 Trade investments

Group
The Group holds two investments with a value of £0.4m (2007/08: £0.3m). One investment held by the Group is in Orexo AB, a Swedish listed company, which mainly relates to a holding of Orexo AB ordinary shares. This investment is as a result of the disposal of Vectura’s shareholding in PharmaKodex Limited in February 2009. PharmaKodex Limited was equity accounted as an associate for the period to February 2009 and Vectura’s share of the losses for that period was £0.6m. The carrying value of PharmaKodex Limited was £0.9m at 31 March 2008 and after consolidation of the losses was reduced to £0.3m at the date of disposal. Vectura is entitled to deferred and contingent consideration from Orexo AB. The group’s second investment is in an unquoted company.

Company
The Company holds the investment in Orexo AB at 31 March 2009 (2008: £nil).

15 Other receivables

Group
Other receivables represent an investment bond of £428,000 in respect of a rental deposit paid under the terms of a lease agreement for the Company’s premises at Chippenham. The deposit is for a fixed period of one year and is renewed annually. Under the terms of the lease agreement the deposit must be maintained until the Group has made three years of consecutive profits. The interest rate is 1% below the Royal Bank of Scotland base rate and was 0% for the year ended 31 March 2009. Interest is recognised using the effective interest method.

Company
Other receivables were transferred to Vectura Limited, a wholly owned subsidiary undertaking, during the year. Other receivables held at 31 March 2008 represent the investment bond of £428,000 in respect of a rental deposit paid.

16 Inventories

	Group		Company
	2009 £m	2008 £m	2009 £m	2008 £m
Finished goods	0.1	0.2	–	–

17 Trade and other receivables


	Group 2009 £m	2008 £m	Company 2009 £m	2008 £m
Trade receivables	1.4	2.9	–	0.7
Other receivables	0.3	–	0.2	–
Prepayments and accrued income	4.0	2.8	–	–
VAT recoverable	0.7	0.3	–	0.2
	6.4	6.0	0.2	0.9

The average credit period taken by customers is 30 days. The Directors consider that the carrying value of trade and other receivables approximates to their fair value.

18 Amounts due from and owed to subsidiary undertakings


	Group 2009 £m	2008 £m	Company 2009 £m	2008 £m
Amounts falling due within one year:
Due from subsidiary undertakings	–	–	75.1	–
Amounts falling due after more than one year:
Owed to subsidiary undertakings	–	–	20.2	20.4

19 Deferred income

Deferred income relates to amounts received under product licensing agreements. Vectura continues to provide services to these licensing partners over a period of time. Milestone payments under these licensing agreements are therefore spread, and income is deferred as follows:


	Group 2009 £m	2008 £m	Company 2009 £m	2008 £m
Amounts due within one year	8.6	5.5	–	0.5
Amounts due in more than one year	1.8	8.2	–	0.4
	10.4	13.7	–	0.9

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Notes to the financial statements at 31 March 2009