REG - Angle PLC - Trading and business update

AngleAnnouncement

09/11/2023 07:00

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RNS Number : 8562S  Angle PLC  09 November 2023

 For immediate release  9 November 2023

 

ANGLE plc ("the Company")

 

TRADING AND BUSINESS UPDATE

 

Revenue recognised for 2023 expected to be up 120% at c. £2.2 million with
sales secured in 2023 expected to be c. £3.3 million

 

Revenue recognised for 2024 expected to treble compared to 2023

 

Cash runway extended into Q2 2025

 

ANGLE plc (AIM:AGL OTCQX:ANPCY), a world-leading liquid biopsy company with
innovative circulating tumour cell (CTC) diagnostic solutions for use in
research, drug development and clinical oncology, is today providing a trading
and business update.

 

Trading update - Strong growth in sales

The Company expects revenue recognised for 2023 will be c. £2.2 million,
which is an increase of 120% over revenue achieved in 2022 but below current
market consensus of c. £3.0 million. New sales secured in 2023 are expected
to be c. £3.3 million however revenue recognition for some of these sales
will fall into the 2024 financial year. Gross margin for H2 is expected to be
higher than H1 reflecting the product-service mix and, together with tight
cost control, to result in the cash position at 2023 year end being in line
with consensus at c. £15 million.

 

Streamlining of the Services business outlined below is anticipated to result
in c. £0.5 million of non-cash impairments and c. £0.7 million of one-off
cash costs in 2023 resulting in an operating loss for the year of c. £21
million, which remains in line with consensus despite the additional charges.
The streamlining is expected to deliver cost savings of c. £3 million per
annum in 2024 resulting in the extension of the cash runway into Q2 2025.

 

Revenue for the Products business has continued to grow in line with our
expectations and will be further supported by the newly established
distributor network as well as new product launches. The Pharma Services
business has continued to gain commercial traction although the slowdown in
biopharma spending has led to an elongation of the sales process with some
sales falling away. Despite this, progress is being made towards securing
retained relationships with large pharma customers and launching additional
Parsortix based tests to drive increased sales.

 

Revenue recognised for 2024 is expected to treble compared to 2023 with the
growth of distributor sales, and with the planned launches of the Portrait
PD-L1 test (services), see separate announcement today, the Portrait+ antibody
staining kit (products), and the Parsortix BiDetect(TM) DNA solutions
combining ctDNA and CTC-DNA analysis (products and services) all contributing
to the Company's sales growth ambitions.

 

Business update - Streamlining services business extends cash runway

With the expected growth in molecular solutions requiring investment and
considering ongoing adverse market conditions, we have made the decision to
streamline our Services operations by closing the US clinical laboratory and
focusing on a single UK-based centre of excellence.  We have developed
solutions for sample stability so that the physical location of the laboratory
does not limit its capability to service customers across different
geographies.  The streamlining will enable us to focus our investment in
multiple molecular platforms for different applications in a single location
without duplicating these significant costs.

 

The extension of our molecular capability across multiple molecular platforms
will also support product sales to the customers of the installed base of
these molecular platforms as it will drive the generation of a stream of
clinical evidence of the value of such analysis, the first of which we expect
to publish before the year end.

 

ANGLE Founder and Chief Executive, Andrew Newland, commented:

"The build-up of revenues has been slower than hoped but is moving in the
right direction and the Company expects strong revenue growth year-on-year.
The cost savings from the streamlining of our clinical services business will
now extend the forecast cash runway into Q2 2025 and we look forward to
progressing the planned launches of new products and services to drive
widespread adoption of the Company's Parsortix system to support precision
medicine in cancer."

 

 

 

For further information:

 

 ANGLE plc
 Andrew Newland, Chief Executive             +44 (0) 1483 343434

 Ian Griffiths, Finance Director

 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, Alexander Ind

 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/)

 

 

Notes for editors

 

About ANGLE plc

 

ANGLE is a world-leading liquid biopsy company with innovative circulating
tumour cell (CTC) diagnostic solutions for use in research, drug development
and clinical oncology using a simple blood sample. ANGLE's FDA cleared and
patent protected circulating tumour cell (CTC) harvesting technology known as
the Parsortix(®) PC1 System enables complete downstream analysis of the
sample including whole cell imaging and proteomic analysis and full genomic
and transcriptomic molecular analysis.

 

ANGLE's commercial businesses are focusing on diagnostic products and clinical
services. Diagnostic products include the Parsortix(®) system and associated
consumables. The clinical services business is offered through ANGLE's
GCP-compliant laboratories.  Services include custom made assay development
and clinical trial testing for pharma.

 

Over 80 peer-reviewed publications have demonstrated the performance of the
Parsortix system. For more information, visit www.angleplc.com
(http://www.angleplc.com)

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