REG - Angle PLC - Results for the year ended 31 December 2022
21/04/2023 07:00
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RNS Number : 9841W Angle PLC 21 April 2023
For Immediate Release 21 April 2023
ANGLE plc
("ANGLE" or "the Company")
Preliminary Results for the year ended 31 December 2022
FDA CLEARANCE A MAJOR BREAKTHROUGH FOR PARSORTIX LIQUID BIOPSY
Parsortix system substantially out-performs standard of care for ovarian
cancer diagnosis
Prostate cancer partnership signed with Solaris Health
Pipeline of opportunities growing strongly
ANGLE plc (AIM: AGL OTCQX: ANPCY), a world-leading liquid biopsy company,
today announces audited preliminary results for the year ended 31 December
2022.
2022 was a breakthrough year for ANGLE, with both FDA clearance and excellent
results from the ovarian cancer study. These achievements have placed ANGLE in
a strong position to play a leading role in the emerging liquid biopsy market
for personalised cancer care and is reflected in strong growth in unaudited
revenues in Q1 2023 year-on-year.
Operational Highlights
Products
· FDA De Novo clearance received for the Parsortix(®) PC1 Clinical
System for its intended use with metastatic breast cancer (MBC) patients
- first ever FDA product clearance to harvest intact cancer cells from a
patient blood sample for subsequent user-validated analysis
- multiple global distribution agreements secured to support commercial
roll-out
Pharma services
· Increased pharma industry engagement post FDA clearance
- repeat contract, worth up to $1.2 million, from large-scale pharma
customer
- assay development contract successfully delivers DNA Damage Repair (DDR)
assay
- ISO 15189 accreditation received for the United States laboratory
Clinical uses
· Ovarian cancer
- excellent headline results from ovarian study with ROC-AUC 95.4%
- results demonstrate clinical validity employing molecular analysis of
cancer cells captured using the Parsortix system in a difficult to diagnose
real-world setting
· Prostate cancer
- partnership established with Solaris Health, a major United States urology
group to evaluate the Parsortix system in prostate cancer
- clinical study now underway and expected to complete during 2023
Financial Highlights
· Revenue £1.0 million (2021: £1.0 million) as previously
communicated
· Loss for the year £21.7 million reflecting planned investment (2021:
loss £15.0 million)
· Fundraising from institutional investors, including existing and new
institutional investors, raising gross proceeds of £20.1 million (£18.9
million net of expenses)
· Cash and cash equivalents at 31 December 2022 of £31.9 million
(2021: £31.8 million) with R&D Tax Credits due at 31 December 2022 of
£2.8 million (2021: £4.5 million)
2023 Progress and Outlook
· 2023 product and services revenues both progressing well with
unaudited Q1 2023 revenue strongly ahead year-on-year
· Pharma services business growing well with new customers, such as
Crescendo Biologics, and a growing pipeline of opportunities under discussion
· Strong repeat pharma services business model being demonstrated with
existing customers signing additional contracts
· Prostate cancer pilot study enrolment on track for headline data
around the end of 2023
· Corporate deal signed with BioView for development of a HER2 breast
cancer test, to deliver revenues of c. £1.2 million in the initial phase, and
with the prospect of adding other large corporate partners in due course
· Encouraging initial results from third-party molecular tests on the
Parsortix CTC harvests opening the potential for high value molecular tests in
the future for pharma services and clinical use
· Shortly after the year-end, two new Non-Executive Directors were
appointed strengthening the Board for the next phase of the Company's
development
· Current pipeline of commercial opportunities supports management's
confidence in delivering strong growth in 2023 and beyond
Garth Selvey, Non-Executive Chairman of ANGLE plc, commented:
"2022 was a breakthrough year for ANGLE with the world's first ever FDA
product clearance for a system to harvest CTCs, intact living cancer cells,
from metastatic breast cancer patient blood for subsequent analysis. This was
followed by ANGLE's ovarian cancer study demonstrating the clinical validity
of analysing Parsortix CTCs for real-world clinical applications.
We are executing on our strategy to commercialise the Parsortix system
through: a product business, with distribution partners for Parsortix
instruments and consumables; and a services business, to utilise the Parsortix
system in cancer drug trials and as an accelerator and demonstrator to support
product sales. In both business areas, ANGLE is looking to leverage corporate
partnerships to accelerate multiple commercial opportunities through clinical
validation, regulatory approval and reimbursement authorities.
The increasing number of published studies for a variety of cancer types
combined with the FDA clearance have placed ANGLE in a strong position to play
a leading role in the emerging liquid biopsy market for personalised cancer
care. The CTCs harvested by the Parsortix system have wide applicability for
diagnosis, treatment selection and monitoring to improve patient outcomes and
reduce healthcare costs.
We are pleased to see that 2023 has started strongly and look forward to
continued commercial progress in the year ahead."
Details of webcast
A virtual meeting for analysts will be held at 10:00 am BST today. A live
webcast of the analyst meeting can be accessed via ANGLE's Investor Centre
page, https://angleplc.com/investor-relations/regulatory-news/
(https://angleplc.com/investor-relations/regulatory-news/) , with Q&A
participation reserved for analysts only. Please register in advance and log
on to the webcast approximately 5 minutes before 10:00 am on the day of the
results. A recording of the webcast will be made available on ANGLE's website
following the results meeting.
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
Thomas Bective, Shaam Vora
FTI Consulting
Simon Conway, Ciara Martin +44 (0) 203 727 1000
Matthew Ventimiglia (US) +1 (212) 850 5624
For Frequently Used Terms, please see the Company's website on
https://angleplc.com/investor-relations/glossary/
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.
These Preliminary 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
general economic climate and market conditions, as well as specific factors
including the success of the Group's research and development,
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
Introduction
The ground-breaking FDA product clearance for the Parsortix PC1 Clinical
System in metastatic breast cancer heralds a new era for personalised cancer
care. Large-scale medtech and pharma companies now have an FDA cleared
platform on which to develop new diagnostic solutions for personalised cancer
care and ANGLE is now moving to commercial roll-out of the system.
I am pleased to welcome two new non-executive directors to the Board, who
joined in January 2023. Juliet Thompson, who brings specialist knowledge in
the areas of financing, strategy and corporate governance, and Dr. Joe Eid,
who brings extensive experience of biomarkers in oncology and a wide pharma
industry network.
Overview of Financial Results
Revenue of £1.0 million in the year (2021: £1.0 million) came mainly from
research use sales of the Parsortix system with an initial contribution from
the newly established pharma services business.
ANGLE continued substantial investment in studies to develop and validate the
clinical application and commercial use of the Parsortix system and to expand
its commercial team ahead of anticipated customer demand, resulting in
operating costs for the year of £24.8 million (2021: £18.0 million) and a
loss for the year of £21.7 million (2021: loss £15.0 million).
In July 2022, ANGLE moved rapidly post FDA clearance to complete a capital
raise of £20.1 million (£18.9 million net of expenses) to support the
Company's commercialisation plans through to mid-2024. The orderly wind down
of the site in Toronto, Canada, and resultant streamlining of the Company's
operations in the second half of 2022 further increases the cash runway into
H2 2024, leaving ANGLE in a strong position to deliver on planned objectives
and milestones.
The Company is tightly controlling its cash resources and, post year end, the
decision was taken not to pay cash bonuses in relation to 2022 despite strong
performance against agreed objectives during the year. Instead share options
and LTIP options were granted with a three year vesting period and a further
two year holding period for executive directors. Share price performance
conditions were set for senior management and executive directors, which must
be met as a precondition if options are to be exercised.
Commercial strategy
ANGLE's vision is to secure widespread adoption of the Parsortix system by
providing CTCs as the "best sample" for analysis in the emerging multi-US$
billion liquid biopsy oncology market. To drive commercialisation, ANGLE has
established both a product business and a services business.
Both business areas are supported by a growing body of scientific evidence and
clinical studies from leading cancer centres in published peer-reviewed
journals.
Outlook
2022 was a breakthrough year for ANGLE, with both FDA clearance and the
growing level of scientific evidence increasing the pipeline of opportunities
for both our product and pharma services businesses. The Company is engaging
with some of the largest pharma companies, medtech companies and clinical
laboratories globally, with the capacity to drive Parsortix adoption through
multiple clinical validation, specific regulatory approvals and acceptance by
clinical service payers.
ANGLE is focusing on the most immediate commercial opportunities and has the
resources in place to deliver on its strategic and commercial plans. The
current year has started well with several new customers and orders confirmed
and revenues are up strongly in Q1 2023 year-on-year.
Garth Selvey
Chairman
20 April 2023
CHIEF EXECUTIVE'S STATEMENT
Commercial strategy
ANGLE's vision is to secure widespread adoption of the Parsortix technology by
providing CTCs as the "best sample" for analysis in the emerging multi-US$
billion liquid biopsy market. To drive commercialisation, ANGLE has
established both a product business and a services business with differing
regulatory pathways, routes to market and near and longer-term revenue
potential.
1. Product business area
ANGLE has developed the Parsortix system including instruments and one-time
use cassettes that can be sold to third-party laboratories for their use in
research, pharmaceutical development or clinical use. To enable customers to
carry out downstream analysis of the Parsortix harvest, ANGLE will also offer
assay kits for cell imaging, use protocols and data packets for molecular
platforms and algorithms for clinical interpretation of results.
2. Services business area
ANGLE has established clinical laboratories in the UK and United States as
accelerators and demonstrators that have the capability and required quality
systems to process patient samples and offer validated clinical tests using
the Parsortix system. The laboratories, in Guildford, UK and Plymouth Meeting,
Pennsylvania, United States are being used to provide services to pharma and
biotech customers running clinical trials (pharma services) and will be able
to offer laboratory developed tests (LDTs) for patient management as a first
step towards product roll-out of tests.
Both business areas are supported by a growing body of published evidence from
leading cancer centres showing the utility of the system through peer-reviewed
publications, scientific data and clinical research evidence, highlighting a
wide range of potential applications.
This includes breakthrough research such as that published in June 2022 by the
Molecular Oncology Laboratory at the Swiss Federal Institute of Technology in
Zurich, Switzerland. The study revealed the link between cancer metastasis and
the circadian rhythm, demonstrating that the spread of breast cancer
accelerates during sleep. The research was published in the high-impact
journal Nature and provides novel insights and potential targets for drug
discovery.
Parsortix products
On 25 May 2022, FDA granted a De Novo Class II classification for the
Parsortix PC1 Clinical System for use in harvesting CTCs, intact living 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 PC1 Clinical System. De Novo clearance
is extremely challenging and costly and consequently is rare and the Parsortix
clearance is the first such medical device classification for a new instrument
in oncology for many years.
With a view to driving longer-term product revenues, during the year ANGLE
expanded its commercial operations team, including product management,
logistics, service and maintenance, and, following the FDA clearance and CE
marking, has successfully established agreements to build an international
network of oncology focused distribution partners. This network covers
territories in Europe, including Germany, Austria, Czech Republic,
Switzerland, Spain and France, the Middle East, China, India and New Zealand,
with other geographies in discussion. These partners will provide valuable
sales, implementation and ongoing service and maintenance support in their
chosen markets.
Parsortix assay development
To support adoption of its technology by adding "content", ANGLE has been
developing a suite of imaging assays (branded Portrait(+)) and molecular
assays (branded Landscape(+)) to analyse the cancer cells harvested by the
Parsortix system. These assays are designed to build a menu for ANGLE's
pharma services business and to be sold as products for third-party customers
through the growing distribution network for use with the Parsortix system.
ANGLE has made good progress in the in-house development of a pipeline of new
products, 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 in progress, enabling quantitative identification of this key target
protein for immunotherapy on CTCs harvested using the Parsortix system.
The decision has been taken to focus development of the downstream molecular
assays (Landscape(+)) on third-party platforms which have greatly improved in
sensitivity and reduced in cost in recent years and offer an installed base of
molecular products, which can be leveraged for new Parsortix applications.
Early results for evaluations of third-party systems have been highly
encouraging and offer the prospect of combining the Parsortix harvest with
platforms that are already widely adopted with a global installed base and
where there are targeted sequencing panels already validated and commercially
available for a wide range of solid tumour types.
Pharma services
The pharma services business utilising the Parsortix system offers the
potential for substantial revenues in the large cancer drug trials market
where ANGLE is clearly differentiated. The FDA clearance has helped open
doors to pharma and the pipeline of potential pharma services customers has
expanded significantly. There is a growing number of potential new customers
and projects in discussion, including major pharma companies. In addition,
ANGLE anticipates a high level of repeat business opportunities with existing
customers and, during the year, announced it had secured an additional
multi-year contract, worth up to US $1.2 million, with its first large-scale
pharma services customer.
ANGLE made excellent progress during the year with its first bespoke assay
development customer. Following validation in ANGLE's clinical laboratories,
the customer expects to employ the assays in clinical studies starting in
2023. The assays identify two target proteins on CTCs that are implicated in
DNA Damage Repair (DDR), ɣ-H2AX and pKAP1. This is an area of focus for drug
companies developing PARP inhibitors for a range of solid tumours and the
assays will be added to our "menu" of pre-developed tests that can be offered
to other customers. Initial interest in these assays, which were introduced at
an industry event in early 2023, has been very encouraging.
To support its pharma services business, ANGLE has been seeking regulatory
accreditation of its Parsortix clinical laboratories in the United States and
UK. ISO 15189 accreditation was received for the United States laboratory
towards the end of the year and is expected for the UK laboratory in due
course. This is an important achievement and demonstrates that ANGLE's
clinical laboratories maintain globally recognised quality standards meeting
all the requirements of major pharma customers. This is a key element as
pharma services customers require evidence that the laboratories are stable,
robust, compliant, and subject to periodic external inspections by recognised
organisations.
ANGLE believes that longitudinal monitoring of CTCs is a highly attractive
proposition for the pharma industry looking for new insights in cancer drug
trials and that prospects are very positive for the growth of this business.
ANGLE has initiated its roll out of assays with the EMT and DDR assays being
offered to pharma services customers from the clinical laboratories.
Clinical services
ANGLE intends that its Parsortix clinical laboratories will also offer a
limited number of laboratory developed tests (LDTs) to physicians for patient
management. These tests will act as "accelerators" of clinical
commercialisation and also as "demonstrators" of clinical utility to support
the product strategy. They will be the first step towards product roll-out of
tests.
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. The process will be completed once the first
LDTs are being offered from the laboratories, which is a requirement.
Parsortix clinical studies
ANGLE is conducting clinical studies in selected high-risk patient groups.
Successful studies demonstrate the value of CTC analysis by providing evidence
of their predictive power. Successful results will also provide the data
required to support the launch of LDTs from ANGLE's own clinical laboratories
as accelerators and demonstrators (see above). Once published, results could
also encourage third-party laboratories to offer these tests from their own
accredited laboratories, enabling the sale of instruments and consumables.
Ovarian cancer
ANGLE has utilised Parsortix to investigate the diagnosis of ovarian cancer in
women with an abnormal pelvic mass. Headline results for the clinical validity
study were announced during the year demonstrating exceptional performance
with ROC-AUC (accuracy) of 95.4%. This was in-line with the Company's
earlier clinical study and achieved the Company's objective of best-in-class
results with both sensitivity and specificity of 90% or greater. This result
far out-performed standard of care for the detection of ovarian cancer
demonstrating the value of the Parsortix system for real-world clinical
decision-making and the clinical relevance of investigating CTCs.
Following these excellent results, ANGLE has carefully considered the most
appropriate commercial route for this test. With a view to maximising
commercial potential and recognising the improvement in sensitivity and
reduction in costs of other molecular systems with an established installed
base, the Landscape(+) Ovarian assay will now be optimised utilising a
third-party molecular analysis platform. Validation of the optimised assay can
be undertaken utilising patient samples stored from the already completed
studies. The major advantage of this approach is it will leverage the
third-party installed base providing them with "content" and will allow a
larger scale product-based commercialisation strategy for ovarian cancer,
substantially increasing market potential and the rate of adoption.
Prostate cancer
During the year, ANGLE 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 has initiated a clinical study 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 is initially enrolling 100 men scheduled to undergo a prostate
tissue biopsy at a minimum of three study sites. Blood samples collected by
MidLantic Urology are being 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. Patient
enrolment for the pilot study is on track and ANGLE expects headline results
around the year end.
Solaris is planned to 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.
Parsortix corporate partnerships
Addressing a large and complex healthcare market with a new technology
requires significant resources and ANGLE is seeking long term corporate
partnerships on a case-by-case basis to assist in accelerating market access
and maximising commercial potential across its business lines. The partnership
with Solaris Health in prostate cancer signed during the year provides an
example of this approach, fast-tracking clinical studies and providing a
valuable first route to market with a substantial patient base.
The agreement with BioView to develop a CTC HER2 assay for breast cancer using
a combination of ANGLE's FDA cleared Parsortix(®) PC1 Clinical System and
BioView's automated microscopy systems and software to detect and assess the
HER2 expression and/or gene amplification in CTCs is another significant
development. The changing market dynamics of the HER2 breast cancer
marketplace, with the introduction of new drugs targeting low HER2 expression,
have provided ANGLE and BioView with a major commercial opportunity to develop
a quantitative CTC-based HER2 assay, to assess HER2 protein expression and/or
gene amplification levels by analysing fluorescence intensities.
This would be the only product-based solution on the market for this purpose,
leveraging both companies' previous FDA product clearances. Unlike current
standard of care tests developed for use on FFPE tissue, a CTC HER2 assay
could be used for longitudinal monitoring of HER2 status throughout disease
progression, thereby ensuring the patient is targeted for the most appropriate
treatment at every stage. The development phase is estimated to take around a
year to complete and will generate revenue of c. £1.2 million.
Given the significant third-party interest in a new assay for quantitative
HER2 analysis based on CTCs, the agreement allows for the inclusion of third
parties in this project and its funding at the commercialisation stage after
the initial development work is complete. ANGLE continues to discuss strategic
routes to market with potential corporate partners.
As described above, following a review of third-party molecular systems, ANGLE
has focused its resources on evaluating the performance of Parsortix samples
in combination with multiple third-party downstream DNA and RNA sequencing
technologies. Initial results from these evaluations have been highly
encouraging and ANGLE believes this will open the door to partnering
discussions with these technology providers, who are keen to add "content" to
their product menus.
Summary
Despite very challenging macro conditions outside the Company's control, ANGLE
is making strong progress building both its products and services
businesses. Harvesting intact living cancer cells for analysis, ANGLE's FDA
cleared Parsortix PC1 Clinical System is differentiated from all other
approaches to liquid biopsy and offers the prospect of cost-effective,
non-invasive repeat testing for cancer patients.
ANGLE is now well on the way to getting this approach adopted by pharma in the
cancer drug trials process and is building the data to drive adoption in the
diagnosis and treatment of cancer patients to improve patient outcomes and
reduce healthcare costs.
Andrew Newland
Chief Executive
20 April 2023
ANGLE PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
Note £'000 £'000
Revenue 1,041 1,013
Cost of sales (428) (302)
Gross profit 613 711
Other operating income 1 41
Operating costs (24,821) (17,987)
Operating profit/(loss) (24,207) (17,235)
Finance income 136 29
Finance costs (368) (157)
Profit/(loss) before tax (24,439) (17,363)
Tax (charge)/credit 5 2,753 2,351
Profit/(loss) for the year (21,686) (15,012)
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translating foreign operations (175)
(2,023)
Other comprehensive income/(loss) (2,023) (175)
Total comprehensive income/(loss) for the year (15,187)
(23,709)
Earnings/(loss) per share attributable to owners of the parent 6 (8.79) (6.67)
Basic and Diluted (pence per share)
All activity arose from continuing operations.
ANGLE PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
2022 2021
Note £'000 £'000
Assets
Non-current assets
Intangible assets 2,764 3,573
Property, plant and equipment 3,505 2,172
Right-of-use assets 4,971 2,204
Total non-current assets 11,240 7,949
Current assets
Inventories 2,059 1,748
Trade and other receivables 1,797 1,269
Taxation 2,876 4,510
Cash and cash equivalents 31,896 31,839
Total current assets 38,628 39,366
Total assets 49,868 47,315
Liabilities
Non-current liabilities
Lease liabilities (4,339) (1,816)
Provisions (157) -
Trade and other payables (59) (257)
Total non-current liabilities (4,555) (2,073)
Current liabilities
Lease liabilities (662) (522)
Provisions (610) -
Trade and other payables (3,978) (4,390)
Total current liabilities (5,250) (4,912)
Total liabilities (9,805) (6,985)
Net assets 40,063 40,330
Equity
Share capital 7 26,058 23,514
Share premium 115,918 99,406
Share-based payments reserve 5,321 2,727
Other reserve 2,553 2,553
Translation reserve (5,983) (3,960)
Accumulated losses (103,702) (83,808)
ESOT shares (102) (102)
Total equity 40,063 40,330
ANGLE PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
£'000 £'000
Operating activities
Profit/(loss) before tax (24,439) (17,363)
Adjustments for:
Depreciation of property, plant and equipment 920 701
Depreciation and impairment of right-of-use assets 940 532
(Profit)/loss on disposal of property, plant and equipment 172 4
Amortisation and impairment of intangible assets 978 254
Share-based payment charge 4,386 1,325
Exchange differences (2,072) (170)
Net finance (income)/costs 232 128
Operating cash flows before movements in working capital (18,883) (14,589)
(Increase)/decrease in inventories (580) (1,015)
(Increase)/decrease in trade and other receivables (650) 204
Increase/(decrease) in trade and other payables (978) 1,417
Increase/(decrease) in provisions 594 -
Operating cash flows (20,497) (13,983)
Research and development tax credits received 4,506 -
Overseas tax payments (59) (27)
Net cash from/(used in) operating activities (16,050) (14,010)
Investing activities
Purchase of property, plant and equipment (1,718) (1,666)
Purchase of intangible assets (169) (122)
Transfer from short-term deposits - 16,538
Interest received 136 24
Net cash from/(used in) investing activities (1,751) 14,774
Financing activities
Net proceeds from issue of share capital - placing 18,922 18,765
Proceeds from issue of share capital - share option exercises 123 925
Principal elements of lease payments (814) (614)
Interest elements of lease payments (135) (85)
Net cash from/(used in) financing activities 18,096 18,991
Net increase/(decrease) in cash and cash equivalents 295 19,755
Cash and cash equivalents at start of year 31,839 12,080
Effect of exchange rate fluctuations (238) 4
Cash and cash equivalents at 31 December 31,896 31,839
ANGLE PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
----------- Equity attributable to owners of the parent--------
Share-based
Share Share payments Other
capital premium reserve reserve
£'000 £'000 £'000 £'000
At 1 January 2021 21,540 81,532 1,745 2,553
For the year to 31 December 2021
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences on translating foreign operations
Total comprehensive income/(loss)
Issue of shares (net of costs) 1,974 17,874
Share-based payment charge 1,325
Released on exercise (295)
Released on forfeiture (48)
At 31 December 2021 23,514 99,406 2,727 2,553
For the year to 31 December 2022
Consolidated profit/(loss)
Other comprehensive income/(loss):
Exchange differences on translating foreign operations
Total comprehensive income/(loss)
Issue of shares (net of costs) 2,544 16,512
Share-based payment charge 4,386
Released on exercise (43)
Released on forfeiture/lapse (1,749)
At 31 December 2022 26,058 115,918 5,321 2,553
ANGLE PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022 (continued)
-------- Equity attributable to owners of the parent ----------
Translation Accumulated ESOT Total
reserve losses shares equity
£'000 £'000 £'000 £'000
At 1 January 2021 (3,785) (69,139) (102) 34,344
For the year to 31 December 2021
Consolidated profit/(loss) (15,012) (15,012)
Other comprehensive income/(loss): (175) (175)
Exchange differences on translating foreign operations
Total comprehensive income/(loss) (175) (15,012) (15,187)
Issue of shares (net of costs) 19,848
Share-based payment charge 1,325
Released on exercise 295 -
Released on forfeiture 48 -
At 31 December 2021 (3,960) (83,808) (102) 40,330
For the year to 31 December 2022
Consolidated profit/(loss) (21,686) (21,686)
Other comprehensive income/(loss): (2,023) (2,023)
Exchange differences on translating foreign operations
Total comprehensive income/(loss) (2,023) (21,686) (23,709)
Issue of shares (net of costs) 19,056
Share-based payment charge 4,386
Released on exercise 43 -
Released on forfeiture/lapse 1,749 -
At 31 December 2022 (5,983) (103,702) (102) 40,063
ANGLE PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Preliminary announcement
The preliminary results for the year ended 31 December 2022 were approved by
the Board of Directors on 20 April 2023.
The preliminary announcement set out above does not constitute ANGLE plc's
statutory Financial Statements for the years ended 31 December 2022 or 31
December 2021 within the meaning of section 434 of the Companies Act 2006 but
is derived from those audited Financial Statements.
The auditor's report on the Consolidated Financial Statements for the years
ended 31 December 2022 and 31 December 2021 is unqualified and does not
contain statements under s498(2) or (3) of the Companies Act 2006.
The accounting policies used for the year ended 31 December 2022 are unchanged
from those used for the statutory Financial Statements for the year ended 31
December 2021. The 31 December 2022 statutory Financial Statements will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
2 Compliance with accounting standards
While the financial information included in this preliminary announcement has
been computed in accordance with the measurement principles of UK-adopted
international accounting standards, this announcement does not itself contain
sufficient information to comply with these accounting standards.
Accounting standards adopted in the year
No new accounting standards that have become effective and adopted in the year
have had a significant effect on the Group's Financial Statements.
Accounting standards issued but not yet effective
At the date of authorisation of the Financial Statements, there were a number
of other Standards and Interpretations (International Financial Reporting
Interpretation Committee - IFRIC) which were in issue but not yet effective,
and therefore have not been applied in these Financial Statements. The
Directors have not yet assessed the impact of the adoption of these standards
and interpretations for future periods.
3 Going concern
The Financial Statements have been prepared on a going concern basis which
assumes that the Group will be able to continue its operations for the
foreseeable future.
The Group's business activities, together with the factors likely to affect
its future development, performance and financial position are set out in the
Chairman's Statement.
The Directors have considered the uncertainties, risks and potential impact on
the business associated with potential negative trading scenarios and market
and geopolitical uncertainty (Ukraine-Russia conflict). 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 the financial projections for a
period in excess of 12 months from the date of approval of these Financial
Statements 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 Financial Statements.
4 Critical accounting estimates and judgements
The preparation of the Financial Statements requires the use of estimates,
assumptions and judgements that affect the reported amounts of assets and
liabilities at the date of the Financial Statements and the reported amounts
of revenues and expenses during the reporting year. 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 that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities are described below.
Share-based payment charge
In calculating the fair value of equity-settled share-based payments the Group
uses options pricing models. The Directors are required to exercise their
judgement in choosing an appropriate options pricing model and determining
input parameters that may have a material effect on the fair value calculated.
These key input parameters are expected volatility, expected life of the
options and the number of options expected to vest.
5 Tax
The Group undertakes R&D activities. In the UK these activities qualify
for tax relief and result in R&D tax credits.
6 Earnings/(loss) per share attributable to owners of the parent
The basic and diluted earnings/(loss) per share is calculated by dividing the
after tax loss for the year attributable to the owners of the parent of £21.7
million (2021: £15.0 million) by the weighted average number of shares in the
year.
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 year. Due to losses in the 2022 and 2021
reporting years, share options are non-dilutive for those years 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 246,579,644
weighted average ordinary £0.10 shares for the year (2021: 225,073,380).
7 Share capital
The Company has one class of Ordinary shares which carry no right to fixed
income and at 31 December 2022 had 260,580,547 Ordinary shares of £0.10 each
allotted, called up and fully paid (2021: 235,143,050).
The Company issued 25,162,500 new Ordinary shares with a nominal value of
£0.10 at an issue price of £0.80 per share in a placing of shares realising
gross proceeds of £20.1 million. Associated costs of £1.2 million were
incurred. Shares were admitted to trading on AIM in July 2022.
The Company issued 274,997 new Ordinary shares with a nominal value of £0.10
at exercise prices between £0.385 to £0.530 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
year.
8 Shareholder communications
Copies of this announcement are posted on the Company's website
www.ANGLEplc.com (http://www.ANGLEplc.com) .
The Annual General Meeting (AGM) of the Company will be held at 2:00 pm on
Wednesday 28 June 2023 at the Holiday Inn Guildford, Egerton Road, Guildford,
GU2 7XZ. The Board is looking forward to welcoming shareholders to the AGM in
person. Details will be included in the notice of AGM.
Notice of the AGM will be enclosed with the audited statutory Financial
Statements.
The audited statutory Financial Statements for the year ended 31 December 2022
are expected to be distributed to shareholders no later than 1 June 2023 and
will subsequently be available on the Company's website or from the registered
office, 10 Nugent Road, Surrey Research Park, Guildford, GU2 7AF.
This preliminary announcement was approved by the Board of Directors on 20
April 2023.
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