REG - Angle PLC - Interim Results
29/09/2022 07:00
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RNS Number : 0792B Angle PLC 29 September 2022
For Immediate Release 29 September 2022
ANGLE plc
("ANGLE" or "the Company")
Interim Results for the six months ended 30 June 2022
FDA CLEARANCE A MAJOR BREAKTHROUGH FOR PARSORTIX LIQUID BIOPSY
Prostate cancer partnership signed with Solaris Health
Positive ovarian cancer headline results announced today
ANGLE plc (AIM: AGL OTCQX: ANPCY), a world leading liquid biopsy company,
today announces its unaudited interim financial results for the six months
ended 30 June 2022.
Operational Highlights
· FDA De Novo clearance received for the Parsortix(®) system for its
intended use with metastatic breast cancer (MBC) patients
- first ever FDA product clearance to harvest cancer cells from a patient
blood sample for subsequent user-validated analysis
- first mover advantage for intact cancer cell analysis in the global liquid
biopsy market
- with FDA clearance and CE Mark in place, commercial roll-out underway with
global distributor network being established
· Global pharma services business momentum encouraging
- additional $1.2 million contract from first large-scale pharma services
customer in new clinical trial
- increased pharma industry engagement post FDA clearance
- excellent progress with first bespoke assay customer with DNA damage
repair assay successfully developed
· Analysis of samples from ovarian cancer clinical verification study
completed
- excellent headline results with ROC-AUC 95.4%, as separately announced
today
- results demonstrate clinical validity employing molecular analysis of
cancer cells captured using the Parsortix system in a difficult to diagnose
real world setting
· Partnership established with Solaris Health, a major United States
urology group
- collaboration to evaluate the Parsortix system in prostate cancer clinical
studies, addressing major unmet medical needs
- Solaris Health offers route to market through its extensive patient base
Financial Highlights
· Revenue for the half-year £0.4 million (H1 2021: £0.3 million)
· Loss for the half-year £9.2 million (H1 2021: £7.7 million)
reflecting planned investment
· Cash and cash equivalents at 30 June 2022 of £20.5 million (31
December 2021: £31.8 million)
· Post period end, a further £20.1 million (£18.9 million net of
expenses) was raised in a placing which was supported by new and existing
institutional investors in both the UK and United States as well as senior
management
Outlook
· Pharma services business momentum - discussions in progress with more
than twenty biopharma companies offering a pipeline of opportunities for new
contracts as we move through the end of this year and into 2023. Almost all
potential customers are interested in bespoke assay development
· Global sales and distribution network being established with first
contracts in negotiation and initial seeding of instruments anticipated
· Accreditation of clinical laboratories in final stages offering
ability to offer validated tests for both pharma services and patient
management in coming months
· New product roll-out to accelerate with a pipeline of
sample-to-answer imaging and molecular solutions being finalised for offer to
customers
· Numerous discussions in progress with potential partners including
medtech companies, downstream assay providers and clinical laboratories
regarding selected Parsortix based assays
· Continued investment in clinical studies to provide clinical evidence
to support long term growth
Garth Selvey, Non-Executive Chairman of ANGLE plc, commented:
"I am delighted that during the period the FDA granted a De Novo Class II
classification for the Parsortix system for use in harvesting cancer cells
from metastatic breast cancer patient blood for subsequent user-validated
analysis. Clearance substantially differentiates ANGLE from the competition
and is expected to significantly accelerate commercial adoption of the system
in both research and clinical settings.
ANGLE's global pharma services business is gaining traction, with a notable
increase in potential customer engagement in the weeks post-FDA clearance and
subsequently. We are pleased to see repeat business already coming through
from an early major customer and the successful development of our first
bespoke assay for another as we start to build our service offering 'menu'.
Demonstration of clinical utility is a key strategic goal for the Company. The
positive headline results for the ovarian cancer pelvic mass triage test
announced today provide a real world example of the value of molecular
analysis of the Parsortix harvest of circulating tumour cells and support the
Company's view that this is the "best sample" for analysis for a liquid
biopsy.
Shortly after the period end, ANGLE successfully completed a fundraising of
£20.1 million (£18.9 million net of expenses). Recognising the current
adverse market conditions and wider macroeconomic environment, ANGLE continues
to keep a tight focus on building revenues, controlling costs and maximising
the cash runway within available funds whilst ensuring key commercial
milestones are delivered."
Details of webcast
A virtual meeting and webcast for analysts will be held at 11:00 am BST today.
If you wish to attend, please register in advance and log on to the webcast
approximately 5 minutes before 11.00 am. Details of how to attend can be
accessed via https://angleplc.com/investor-relations/corporate-presentations/
(https://angleplc.com/investor-relations/corporate-presentations/) .
For further information:
ANGLE plc +44 (0) 1483 343434
Andrew Newland, Chief Executive
Ian Griffiths, Finance Director
Andrew Holder, Head of Investor Relations
Berenberg (NOMAD and Joint Broker) +44 (0) 20 3207 7800
Toby Flaux, Ciaran Walsh, Milo Bonser
Jefferies (Joint Broker) +44 (0) 20 7029 8000
Max Jones, Thomas Bective
FTI Consulting
Simon Conway, Ciara Martin +44 (0) 203 727 1000
Matthew Ventimiglia (US) +1 (212) 850 5624
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the EU Market Abuse
Regulation (596/2014). Upon the publication of this announcement via a
regulatory information service, this information is considered to be in the
public domain.
For Frequently Used Terms, please see the Company's website on
https://angleplc.com/investor-relations/glossary/
(https://angleplc.com/investor-relations/glossary/)
These Interim Results may contain forward-looking statements. These statements
reflect the Board's current view, are subject to a number of material risks
and uncertainties and could change in the future. Factors that could cause or
contribute to such changes include, but are not limited to, the impact of the
COVID-19 pandemic, the general economic climate and market conditions, as well
as specific factors including the success of the Group's research and
development activities, commercialisation strategies, the uncertainties
related to clinical study outcomes and regulatory clearance, obtaining
reimbursement and payor coverage, acceptance into national guidelines and the
acceptance of the Group's products by customers.
CHAIRMAN'S STATEMENT
The ground-breaking first ever FDA product clearance in metastatic breast
cancer heralds a new era for personalised cancer care and provides the
platform for ANGLE to work with our collaborators and customers to support
further FDA submissions and the establishment of numerous specific clinical
uses across different cancer types. By making the Parsortix system widely
available, we intend to support the entire industry in its adoption of liquid
biopsy solutions for repeat non-invasive diagnostics for personalised cancer
care. Large-scale medtech and pharma companies now have an FDA cleared
platform on which to develop new medical solutions and ANGLE aims to
capitalise on this opportunity as it begins the commercial roll-out of the
system. Progress is being made, both with complex molecular analysis
solutions, such as the ovarian results announced today, and with low-cost
downstream analysis techniques such as Pap stain showcased earlier this month
at the American Society for Clinical Pathology (ASCP) meeting in Chicago,
Illinois, USA. We expect both of these approaches to positively impact nearer
term adoption of the system.
Overview of Financial Results
Revenue of £0.4 million in the period (six months ended 30 June 2021: £0.3
million) was driven by research use sales of the Parsortix system along with
an initial contribution from the pharma services business, including both
clinical trial services and bespoke assay development. ANGLE expects the
positive impact of FDA clearance on revenues to begin in the second half and
gather momentum thereafter. The Company has continued its investment in
studies to develop and validate the clinical application and commercial use of
the Parsortix system and further build out the clinical laboratories and
pharma services business capacity, resulting in operating costs of £10.6
million (six months ended 30 June 2021: £8.9 million) and a loss for the
period of £9.2 million (six months ended 30 June 2021: loss £7.7 million).
Cash and cash equivalents was £20.5 million at 30 June 2022 (31 December
2021: £31.8 million) with R&D Tax Credits due at 30 June 2022 of £5.9
million (31 December 2021: £4.5 million). Post period end, the cash position
was strengthened with a successful placing of new shares with support from new
and existing UK and United States institutional investors as well as senior
management, which raised net proceeds of £18.9 million.
FDA Clearance
On 25 May 2022, FDA granted a De Novo Class II classification for the
Parsortix system for use in harvesting cancer cells from metastatic breast
cancer (MBC) patient blood for subsequent analysis. This means that an
entirely new medical device classification has been granted by FDA for the
Parsortix system. De Novo clearance is extremely challenging and costly and
consequently is rare and this is the first such medical device classification
for a new instrument in oncology for many years.
The commercial roll-out is now underway, with launch events held at the
American Society for Clinical Chemistry (AACC) meeting in Chicago and the Next
Generation Dx Summit in Washington D.C. Most recently, ANGLE presented a new
poster at the 100(th) American Society for Clinical Pathology (ASCP) in
Chicago, demonstrating that patient sample CTC analysis can be performed by
combining the use of the Parsortix system with standard cytology Pap staining.
This offers the potential to place the system in standardised, low-cost
laboratory workflows, accelerating the adoption by pathology laboratories.
ANGLE is encouraged by the interest and discussions are beginning with several
leading cancer centres in the United States as well as a UK Government agency.
ANGLE is also looking to exploit the FDA clearance and European CE Mark
through distributor arrangements in key territories outside the United States
and contractual negotiations are in progress.
Clinical laboratories
ANGLE has established clinical laboratories in the UK and United States that
have the capability of processing patient samples and offering validated
clinical tests. The laboratories, in Guildford, UK and Plymouth Meeting,
Pennsylvania, United States are being used as accelerators and demonstrators
in support of product sales of Parsortix instruments and cassettes and to
provide services to pharmaceutical and biotech customers running clinical
trials.
Processing of patient samples for clinical purposes requires the laboratories
to be accredited under the appropriate local regulatory regimes. In March
2022, the Centers for Medicare and Medicaid Services (CMS) issued a
Certificate of Registration, under the CLIA process, to the Company's United
States clinical laboratory. This is a key step towards achieving CLIA
accreditation of the laboratory. Following a satisfactory CMS audit, including
an inspection of the facilities and documentation on the validation of assays
to be performed together with associated quality control procedures, a
Certificate of Compliance will be issued. This will complete the accreditation
process that permits the laboratory to process samples for patient management
from the majority of the United States, with a small number of States
requiring additional procedures which will be progressed separately.
ANGLE has made good progress in the in-house development of a pipeline of new
products in addition to the Pap stain assay, including a sample-to-answer
Portrait(+) imaging solution for the identification of epithelial and
mesenchymal CTCs as well as CTCs in the process of epithelial mesenchymal
transition (EMT). A Portrait(+) PD-L1 assay is also nearing completion,
enabling the ability to identify this key target protein for immunotherapy on
CTCs harvested using the Parsortix system. These products can be offered to
both pharma services customers for use in clinical trials or the development
of companion diagnostics or to clinical customers for the development of
laboratory developed tests.
Global pharma services business
Despite lengthy initial sales processes (detailing the analysis capability,
evidencing the laboratory quality systems, and agreeing the sampling handling
and reporting requirements), ANGLE has already successfully secured pharma
services contracts with four pharma and biotech companies to date and
discussions are ongoing with more than twenty companies providing a pipeline
of opportunities that the Company expects to convert into contracts in the
future.
Importantly, on 22 June this year, ANGLE announced it had secured an
additional contract with its first large-scale pharma services customer. The
customer, a pharma company with numerous cancer drugs under development and
revenues exceeding US$1 billion per annum, again selected ANGLE's Parsortix
system to undertake longitudinal monitoring (i.e. before, during and after
drug intervention) of patients with certain unresectable solid tumours in a
new Phase Ib dose-escalation study using its investigational drug in
combination with immuno-oncology agents. Once the recommended dose has been
determined, the study will progress to an expansion stage.
The additional contract is expected to be worth up to US$1.2 million over a
multi-year period. The new work relates to the successful progression of one
of the smaller Phase I studies in the original contract announced in April
2021. This dose-escalation study, with expansion stage, is now in progress and
the customer expects to provide samples from each patient for analysis by
ANGLE at as many as seven separate timepoints.
The additional contract from its first large-scale pharma customer, as well as
ongoing discussions with multiple potential new customers, validates ANGLE's
belief that longitudinal monitoring of CTCs is a highly attractive proposition
for the pharma industry looking for new insights in cancer drug trials.
Bespoke assay development as a first phase in pharma services is expected to
significantly increase the attractiveness of the Parsortix CTC analysis
offering, as pharma clients can look at proteins on CTCs which directly align
with the mechanism of action of their drug under investigation. ANGLE has made
excellent progress in this regard and has completed the development work for
its first assay development customer. The assay successfully identifies on
CTCs two target proteins implicated in DNA damage repair, an area of
significant interest to drug companies developing PARP inhibitors for a range
of solid tumours.
This assay, alongside any further assays developed by ANGLE, can now be added
to a menu of pre-developed tests that can be offered to other customers.
Pharma companies are particularly interested in investigating protein markers
on actual cancer cells. These cannot be investigated using the alternative
liquid biopsy approach ctDNA (fragments of dead cancer cells) since protein
cannot be measured on ctDNA. Tissue biopsies provide cancer cells but cannot
be used for longitudinal monitoring since only a single time point is usually
possible with tissue biopsy. Consequently, pharma companies are unable to
access this analysis without analysing CTCs.
Clinical applications
COVID-19 related supply chain difficulties impacting the ovarian cancer study
were resolved during the period and analysis of samples completed. Headline
results for the study were separately announced today. The performance of the
Parsortix Landscape(+) Ovarian assay in this study was in-line with the high
level of accuracy demonstrated in an earlier 200 patient multicentre clinical
study reported in 2018 (ROC-AUC 95.1%) and achieved the Company's objective of
best in class results with both sensitivity and specificity of 90% or greater.
ANGLE believes the clinical data from this study provides a clear
demonstration of the value of the Parsortix harvest as the "best sample" for
analysis for liquid biopsy. This is possible because the Parsortix system
recovers intact living cancer cells in the patient blood, which contrasts with
other tests based on free-floating proteins that can be upregulated for
reasons other than cancer, or fragments of dead cancer cells, where only a
partial DNA picture is available.
The test utilises comprehensive gene expression information derived from blood
samples shipped overnight to a central laboratory, uses a lysis buffer that
does not require the separate extraction of RNA from the population of cells
captured by the Parsortix system, and does not directly rely on the use of
serum biomarkers. The clinical results therefore demonstrate, in a real world
setting, the ability to undertake complex molecular analysis of the Parsortix
harvest and confirms its suitability for use in both hospital laboratories and
central laboratories requiring sample shipping. ANGLE believes that these key
findings provide evidence of the potential for widespread use of the Parsortix
system for molecular analysis in numerous different cancer applications adding
greatly to the value of the FDA cleared Parsortix system.
ANGLE is finalising detailed plans for commercialisation of Parsortix
Landscape(+) molecular assays including but not limited to ovarian cancer.
During the period, ANGLE also announced it had signed a master clinical study
agreement with Solaris Health Holdings, LLC (Solaris) and joinder agreements
with MidLantic Urology LLC, to collaborate and conduct clinical studies in
prostate cancer and as a potential route to market in the United States.
MidLantic Urology, an affiliate of Solaris, is one of the largest providers of
specialist urology services in the United States with more than 70 physicians
operating from 47 dedicated urology centres across the state of Pennsylvania.
The Solaris Health network encompasses more than 500 clinical urology
providers across 179 locations and nine States with more than 729,000 unique
patients annually.
Together with MidLantic Urology, ANGLE will initiate clinical studies aimed at
investigating the use of the Parsortix(®) system for the detection of
prostate cancer and prediction of its severity in patients who present with an
elevated prostate specific antigen (PSA) level and/or abnormal digital rectal
exam.
This study will initially enrol 100 men scheduled to undergo a prostate tissue
biopsy at a minimum of three study sites over an anticipated period of up to
nine months. Blood samples collected by MidLantic Urology will be shipped to
ANGLE's United States clinical laboratory for processing by the Parsortix
system to harvest and analyse CTCs and associated immune cells. The Parsortix
harvests will be evaluated by both imaging and molecular analysis to assess
the potential to predict the presence of clinically significant prostate
cancer prior to tissue biopsy and to assess potential correlation with
established disease severity scores (e.g. the Gleason score) in those patients
found to have prostate cancer. Headline results are anticipated in late 2023.
Solaris could be ANGLE's first route to market for this test, offering the
established test to their extensive patient base and opening up a significant
market opportunity for ANGLE. Successful results could also allow the design
of a larger validation study to support an eventual submission to FDA and
other regulatory bodies for this application.
Outlook
The first ever FDA product clearance for a system to harvest cancer cells for
subsequent analysis is a major breakthrough for ANGLE and is expected to
positively impact all areas of our business. There has been a notable increase
in clinical and research laboratory engagement since clearance, and we expect
this to continue, leading to first clinical product placements and new pharma
services contracts as commercial discussions mature. The recent proof of
concept using standardised low-cost cytology staining techniques for CTC
identification and analysis is particularly encouraging and should assist
clinical adoption by third party laboratories.
ANGLE continues to explore partnerships with major medical device and
diagnostics companies and is encouraged by the increased engagement and more
detailed discussions post FDA clearance. In addition, several downstream assay
developers and technology providers are looking to combine CTC analysis using
the Parsortix system to enhance their own offering.
Following the excellent results announced today utilising molecular analysis
for ovarian cancer in a real world setting for a difficult to diagnose cancer,
ANGLE is now finalising detailed plans for commercialisation of Parsortix
Landscape(+) molecular assays including but not limited to ovarian cancer.
Molecular analysis of Parsortix harvests opens up a multitude of applications
for ANGLE's customers and has widespread potential application.
Recognising the current adverse market conditions and wider macroeconomic
environment, ANGLE will continue to keep a tight focus on building revenues,
controlling costs and maximising the cash runway within available funds whilst
ensuring key commercial milestones are delivered.
ANGLE continues to believe that clinical adoption of liquid biopsy solutions
for cancer diagnosis is building in all major markets and that, with new
pricing legislation in the United States, drug developers are under increasing
pressure to improve clinical trial efficiency and support market acceptance
for novel cancer treatments, which require companion diagnostics (CDx) for
which Parsortix is ideally suited. With FDA clearance for the Parsortix system
now in place, ANGLE is well positioned to capitalise on these opportunities.
Garth Selvey
Chairman
28 September 2022
ANGLE plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Six months ended Six months ended Year ended
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Revenue 419 296 1,013
Cost of sales _____(160) ____________(77) _________(302)
Gross profit 259 219 711
Other operating income 1 16 41
Operating costs ___(10,626) _________(8,897) ______(17,987)
Operating profit/(loss) (10,366) (8,662) (17,235)
Finance income 32 16 29
Finance costs _____(170) ____________(73) _________(157)
Profit/(loss) before tax (10,504) (8,719) (17,363)
Tax (charge)/credit 2 _____1,283 ___________1,036 _________2,351
Profit/(loss) for the period (9,221) (7,683) (15,012)
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations ____(1,928) _________172 _________(175)
Other comprehensive income/(loss) ____(1,928) _________172 _________(175)
Total comprehensive income/(loss) for the period (11,149) (7,511) (15,187)
========== ============= ============
Earnings/(loss) per share attributable to owners of the parent
Basic and Diluted (pence per share) 3 (3.92) (3.57) (6.67)
All activity arose from continuing operations
ANGLE PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Assets
Non-current assets
Intangible assets 3,590 3,653 3,573
Property, plant and equipment 3,183 2,005 2,172
Right-of-use assets 5,083 2,404 2,204
Total non-current assets 11,856 8,062 7,949
Current assets
Inventories 1,734 1,076 1,748
Trade and other receivables 1,832 1,388 1,269
Taxation 5,883 3,195 4,510
Short-term deposits - 11,550 -
Cash and cash equivalents 20,497 9,481 31,839
Total current assets 29,946 26,690 39,366
Total assets 41,802 34,752 47,315
Liabilities
Non-current liabilities
Lease liabilities (4,672) (1,926) (1,816)
Trade and other payables (686) (1,645) (257)
Total non-current liabilities (5,358) (3,571) (2,073)
Current liabilities
Lease liabilities (565) (683) (522)
Trade and other payables (4,004) (3,026) (4,390)
Total current liabilities (4,569) (3,709) (4,912)
Total liabilities (9,927) (7,280) (6,985)
Net assets 31,875 27,472 40,330
Equity
Share capital 4 23,529 21,586 23,514
Share premium 99,467 81,731 99,406
Share-based payments reserve 5,057 2,058 2,727
Other reserve 2,553 2,553 2,553
Translation reserve (5,888) (3,613) (3,960)
Accumulated losses (92,741) (76,741) (83,808)
ESOT shares (102) (102) (102)
Total equity 31,875 27,472 40,330
ANGLE plc
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Operating activities
Profit/(loss) before tax from continuing operations (10,504) (8,719) (17,363)
Adjustments for:
Depreciation of property, plant and equipment 415 313 701
Depreciation of right-of-use assets 467 260 532
(Profit)/loss on disposal of property, plant and equipment - - 4
Amortisation and impairment of intangible assets 103 114 254
Share-based payments 2,618 394 1,325
Exchange differences (2,030) 171 (170)
Net finance (income)/costs ______138 _______57 ________128
Operating cash flows before movements in working capital: (8,793) (7,410) (14,589)
(Increase)/decrease in inventories (153) (355) (1,015)
(Increase)/decrease in trade and other receivables (691) 105 204
Increase/(decrease) in trade and other payables _____(445) ______1,331 _______1,417
Operating cash flows (10,082) (6,329) (13,983)
Research and development tax credits received - - -
Overseas corporation tax payments ________- _______(11) ________(27)
Net cash from/(used in) operating activities (10,082) (6,340) (14,010)
Investing activities
Purchase of property, plant and equipment (916) (1,007) (1,666)
Purchase of intangible assets (71) (53) (122)
Transfer (to)/from short-term deposits - 4,989 16,538
Interest received _______31 _______13 __________24
Net cash from/(used in) investing activities (956) 3,942 14,774
Financing activities
Net proceeds from issue of share capital - placing - 124 18,765
Net proceeds from issue of share capital - share option exercises 87 - 925
Principal elements of lease payments (369) (309) (614)
Interest elements of lease payments ______(62) _______(19) ________(85)
Net cash from/(used in) financing activities (344) (204) 18,991
(11,382) (2,602) 19,755
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at start of period 31,839 12,080 12,080
Effect of exchange rate fluctuations ________40 ___________3 ______4
Cash and cash equivalents at end of period 20,497 9,481 31,839
=========== =========== =======
Cash and cash equivalents at end of period 20,497 9,481 31,839
Short-term deposits _________- ______11,550 _____________-
Cash and cash equivalents and short-term deposits 20,497 21,031 31,839
=========== =========== ============
ANGLE plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Share-based
Share Share payments Other
capital premium reserve reserve
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'000 £'000
At 1 January 2021 21,540 81,532 1,745 2,553
For the period to 30 June 2021
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations
Total comprehensive income/(loss)
Issue of shares (net of costs) 46 199
Share-based payments 394
Released on exercise (59)
Released on forfeiture (22)
At 30 June 2021 (Unaudited) 21,586 81,731 2,058 2,553
For the period to 31 December 2021
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations
Total comprehensive income/(loss)
Issue of shares (net of costs) 1,928 17,675
Share-based payments 931
Released on exercise (236)
Released on forfeiture (26)
At 31 December 2021 (Audited) 23,514 99,406 2,727 2,553
For the period to 30 June 2022
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations
Total comprehensive income/(loss)
Issue of shares (net of costs) 15 61
Share-based payments 2,618
Released on exercise (21)
Released on forfeiture (267)
At 30 June 2022 (Unaudited) 23,529 99,467 5,057 2,553
ANGLE plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022 (continued)
Translation Retained ESOT Total
reserve earnings shares equity
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
£'000 £'000 £'000 £'000
At 1 January 2021 (3,785) (69,139) (102) 34,344
For the period to 30 June 2021
Consolidated profit/(loss) (7,683) (7,683)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations 172 172
Total comprehensive income/(loss) 172 (7,683) (7,511)
Issue of shares (net of costs) 245
Share-based payments 394
Released on exercise 59 -
Released on forfeiture 22 -
At 30 June 2021 (Unaudited) (3,613) (76,741) (102) 27,472
For the period to 31 December 2021
Consolidated profit/(loss) (7,329) (7,329)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations (347) (347)
Total comprehensive income/(loss) (347) (7,329) (7,676)
Issue of shares (net of costs) 19,603
Share-based payments 931
Released on exercise 236 -
Released on forfeiture 26 -
At 31 December 2021 (Audited) (3,960) (83,808) (102) 40,330
For the period to 30 June 2022
Consolidated profit/(loss) (9,221) (9,221)
Other comprehensive income/(loss):
Exchange differences in translating foreign operations (1,928) (1,928)
Total comprehensive income/(loss) (1,928) (9,221) (11,149)
Issue of shares (net of costs) 76
Share-based payments 2,618
Released on exercise 21 -
Released on forfeiture 267 -
At 30 June 2022 (Unaudited) (5,888) (92,741) (102) 31,875
ANGLE plc
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2022
1 Basis of preparation and accounting policies
This Condensed Interim Financial Information is the unaudited interim
consolidated financial information (the "Condensed Interim Financial
Information") of ANGLE plc, a company incorporated and domiciled in Great
Britain and its subsidiaries (together referred to as the "Group") for the six
month period ended 30 June 2022 (the "interim period").
The Condensed Interim Financial Information should be read in conjunction with
the Financial Statements of the Group for the year ended 31 December 2021,
which have been prepared in accordance with UK-adopted international
accounting standards. New and revised accounting standards and interpretations
that became effective in the period did not have or are not expected to have a
significant impact on the Group. Where necessary, comparative information has
been reclassified or expanded from the previously reported Condensed Interim
Financial Information to take into account any presentational changes which
were made in the Annual Report and Financial Statements to 31 December 2021
and which may be made in the Annual Report and Financial Statements to 31
December 2022.
The accounting policies used in the preparation of the Condensed Interim
Financial Information for the six months ended 30 June 2022 are in accordance
with UK-adopted accounting standards and are consistent with those which will
be adopted in the Financial Statements for the year ended 31 December 2022.
While the Condensed Interim Financial Information has been prepared in
accordance with the recognition and measurement criteria of UK-adopted
international accounting standards, these Financial Statements do not contain
sufficient information to comply with UK-adopted international accounting
standards.
This Condensed Interim Financial Information does not constitute statutory
financial statements as defined in section 434 of the Companies Act 2006 and
is unaudited and has not been reviewed. The comparative information for the
six months ended 30 June 2021 is also unaudited. The comparative figures for
the year ended 31 December 2021 have been extracted from the Group Financial
Statements as filed with the Registrar of Companies. The report of the
auditors on those Financial Statements was unqualified and did not contain
statements under sections 498(2) or (3) of the Companies Act 2006.
The Condensed Interim Financial Information was approved by the Board and
authorised for issue on 29 September 2022.
Going concern
The Financial Information has been prepared on a going concern basis which
assumes that the Group will be able to continue its operations for the
foreseeable future.
The Directors have considered the uncertainties, risks and potential impact on
the business associated with potential negative trading scenarios, market and
geopolitical uncertainty (Ukraine-Russia conflict), Brexit friction and
residual COVID-19 impacts. Discretionary expenditure within the business
provides flexibility to scale back operations to address adverse events if
required. Mitigation measures to reduce costs could be taken if needed and
other potential sources of funding exist such as grants, exclusivity and/or
milestone payments for corporate partnerships being developed and equity
proceeds.
The Directors have prepared and reviewed financial projections for the 12
month period from the date of approval of this Condensed Interim Financial
Information with discretionary expenditure carefully controlled in line with
available resources, as certain projects may be deferred until additional
resources are available. Based on the level of existing cash and expected
R&D tax credits, the projected income and expenditure (the quantum and
timing of some of which is at the Group's discretion) and other potential
sources of funding, the Directors have a reasonable expectation that the
Company and Group have adequate resources to continue in business for the
foreseeable future. Accordingly, the going concern basis has been used in
preparing the Condensed Interim Financial Information. Note 5 provides
additional information.
Critical accounting estimates and judgements
The preparation of the Condensed Interim Financial Information requires the
use of estimates, assumptions and judgements that affect the reported amounts
of assets and liabilities at the date of the Financial Information and the
reported amounts of revenues and expenses during the reporting period.
Although these estimates, assumptions and judgements are based on the
Directors' best knowledge of the amounts, events or actions, and are believed
to be reasonable, actual results ultimately may differ from those estimates.
The estimates, assumptions and judgements that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities relate to 1) share-based payments 2) IFRS 16 recognition of a
right-of-use asset and lease liability where the property lease was effective
from May 2022 but not signed until July 2022 and 3) IFRS 16 assessment of
extension and/or termination options of right-of-use asset and lease
liabilities.
2 Tax
The Group undertakes research and development activities. In the UK these
activities qualify for tax relief resulting in research and development tax
credits.
2 Earnings/(loss) per share
The basic and diluted earnings/(loss) per share is calculated by dividing the
after tax loss for the period attributable to the owners of the parent of
£9.2 million (six months to 30 June 2021: loss £7.7 million, year ended 31
December 2021: loss £15.0 million) by the weighted average number of shares
in the period.
In accordance with IAS 33 Earnings per share 1) the "basic" weighted average
number of Ordinary shares calculation excludes shares held by the Employee
Share Ownership Trust (ESOT) as these are treated as treasury shares and 2)
the "diluted" weighted average number of Ordinary shares calculation considers
potentially dilutive Ordinary shares from instruments that could be converted.
Share options are potentially dilutive where the exercise price is less than
the average market price during the period. Due to the losses in the periods,
share options are non-dilutive for the respective periods as adding them would
have the effect of reducing the loss per share and therefore the diluted loss
per share is equal to the basic loss per share.
The basic and diluted earnings/(loss) per share are based on 235,036,872
weighted average Ordinary £0.10 shares (six months to 30 June 2021:
215,440,711; year ended 31 December 2021: 225,073,380).
4 Share capital
The Company has one class of Ordinary shares which carry no right to fixed
income and at 30 June 2022 had 235,294,716 Ordinary shares of £0.10 each
allotted, called up and fully paid.
During the period the Company issued 151,666 new Ordinary shares with a
nominal value of £0.10 at issue prices of £0.49 and £0.53 per share as a
result of the exercise of share options by employees realising gross proceeds
of £0.1 million. Shares were admitted to trading on AIM at various dates
across the period.
5 Post reporting date events
As explained in the Chairman's Statement, subsequent to the reporting date the
Company has completed a fundraise realising gross proceeds of £20.1 million
(£18.9 million net of expenses).
Shareholder communications
This announcement is being sent to all shareholders on the register at 28
September 2022. Copies of this announcement are posted on the Company's
website www.angleplc.com (http://www.angleplc.com) and are available from the
Company's registered office: 10 Nugent Road, Surrey Research Park, Guildford,
Surrey, GU2 7AF.
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