REG - Aptamer Group PLC - Interim Results
14/03/2023 07:00
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RNS Number : 8205S Aptamer Group PLC 14 March 2023
14 MARCH 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
MARKET ABUSE REGULATIONS. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY
INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
Aptamer Group plc
("Aptamer", the "Company" or the "Group")
Interim results for the six months ended 31 December 2022
Operations scaled, commercial momentum continuing and new R&D developments
Aptamer Group plc (AIM: APTA), the developer of nucleic acid-based Optimer(®)
binders as tools to enable innovation in the life sciences industry, today
announces its unaudited interim results for the six months ended 31 December
2022 (H1 2023).
Financial highlights (H1 2023)
· Revenue £1.0 million (H1 2022: £1.4 million, FY 2022: £4.0
million); additional £1.0m of signed orders at 31 December 2022 and further
contracts signed post-period end
· Cash balance at 31 December 2022 of £1.9 million (H1 2022: £9.8
million immediately after IPO, FY 2022: £6.7 million)
· Adjusted EBITDA loss of £2.5 million (H1 2022: £0.6 million, FY
2022: £1.7 million)
Operational highlights
· Follow-on contract signed in July with a top five pharmaceutical
company to develop multiple Optimer(®) binders as immunohistochemistry
reagents to support pipeline assets and early discovery targets
· Contract agreed in August with a multi-national consumer goods
company for the development of Optimer(®) binders to be used in a novel
personal care application
· Agreement with Bioliquid Innovative Genetics S.L. in August to
develop Optimer(®) binders for use in a novel prenatal and placental
diagnostic platform
· Second contract signed in August with a top ten pharmaceutical
company to develop Optimer(®) binders to enable the downstream bioprocessing
of novel therapeutics
· Follow-on contract signed in August with a stem cell
biotechnology company for the development of Optimer(®) binders to support
Quality Control (QC) release of cell therapies
· Agreement signed in October with a biomarker services company to
develop Optimer(®) binders to support multiplex biomarker assays for mass
spectrometry analysis
· In November, entered the second phase of collaboration with
Cancer Research UK to develop the delivery vehicle portion of the bispecific
therapeutic Optimer(®) binder for the treatment of Chronic Myelomonocytic
Leukaemia (CMML) and other myeloid malignancies
· Signed an early-stage deal in November to develop Optimer(®)
binders to block the activity of naturally occurring antibodies within the
body, for use as a potential therapy to prevent transplant rejection
· Signed a deal with Novavax in November, a vaccine developer for
respiratory diseases, who require Optimer(®) binders to improve the
selectivity and enable multiplex analysis of their QC assays
· Contract signed with BaseCure Therapeutics in December to develop
Optimer(®) binders against specific cell types, that may be developed as
delivery vehicles for siRNA, to improve uptake in target cells and tissues
Post-period highlights
· Contract signed with Asian-based developer of custom enzymes, who
require Optimer(®) binders to allow monitoring of reactants and products in
their manufacturing processes
· Follow-on project with a multi-national consumer goods company
for the development of Optimer(®) binders as novel solutions in personal care
· Two follow-on contracts signed with a top 20 pharma company to
develop Optimer(®) binders to support clinical trial bioanalytical studies
Corporate highlights (including post-period end)
· Dr Rob Quinn was appointed as Chief Financial Officer and joined
the Company on 1 March 2023
· Derek Smith was appointed as interim Chief Commercial Officer in
January 2023
· Completed planned relocation to larger, purpose-built
laboratories in November, supporting Aptamer in scaling up its operations,
streamlining workflows and servicing the increase in demand for Optimer
binders
· Implementation of Optimer(®)+ platform continues at pace.
Aptamer is generating exemplification data packs to give a unique service
offering, strengthen the company's technology position in the market and
accelerate the opportunity for Optimer technology in drug delivery
Commenting on the interim results, Dr Arron Tolley, Chief Executive Officer of
Aptamer Group, said: "The first half of the year has seen Aptamer sign
contracts across all business units, including with several top 10
pharmaceutical companies, and strong contract signing post-period. We are
seeing an increasing number of follow-on projects from current customers as
the awareness of our Optimer(®) technology and its potential to solve
intractable problems in the life sciences is recognised.
"During the first half, we significantly scaled our operations and expanded
our development capacity, underpinned by our move to custom-fitted premises.
The expansion of the assay development team has supported our continued work
to build key data packs to support increased penetration into the therapeutics
drug delivery space.
"Looking ahead, we anticipate significantly higher revenues in the second half
with a material uplift occurring in the final quarter of our financial year,
as many of the current contracted development projects near completion or
begin secondary phases. In addition, we have a strong and growing pipeline of
qualified opportunities reflecting the increasing global demand for our
services and recognition across the life sciences market of the technology's
capabilities and value. This large and varied pipeline of opportunities gives
us belief in the positive momentum and longer term potential of the business
and, although timing and conversion rates for these opportunities carry some
uncertainty, we believe that we can deliver revenue in line with market
expectations for the full year."
Sell-side analyst meeting and webcast
An in-person sell-side analyst meeting and webcast will take place at 10:00am
GMT this morning. To attend, please contact aptamergroup@consilium-comms.com
(mailto:aptamergroup@consilium-comms.com) or please dial in to the webcast
following this link:
https://www.lsegissuerservices.com/spark/APTAMERGROUP/events/fe575c04-96d7-42a0-9166-d557d57895d2
(https://www.lsegissuerservices.com/spark/APTAMERGROUP/events/fe575c04-96d7-42a0-9166-d557d57895d2)
- End -
For further information, please contact:
Aptamer Group plc
Dr Arron
Tolley
+44 (0) 1904 217 404
SPARK Advisory Partners Limited - Nominated Adviser
Andrew Emmott / Mark Brady / Adam
Dawes
+44 (0) 20 3368 3550
Liberum Capital Limited - Broker
Richard Lindley / Ben Cryer / Cara
Murphy
+44 (0) 20 3100 2000
Consilium Strategic Communications
Matthew Neal / Chris Welsh / Lucy
Featherstone
+44 (0) 20 3709 5700
aptamergroup@consilium-comms.com (mailto:aptamergroup@consilium-comms.com)
About Aptamer Group plc
Aptamer (http://www.aptamergroup.com/) Group develops custom affinity binders
through its proprietary Optimer(®) platform, to enable therapeutics,
diagnostics and research applications, throughout the life sciences. The
Company strives to deliver transformational solutions tailored to meet the
needs of life science researchers and developers through the application of
its proprietary Optimer(®) platform.
Optimer(®) binders are oligonucleotide-based affinity ligands that can serve
as antibody alternatives in a variety of applications across different life
science sectors. The global antibody market is currently worth over $145.0
billion. Optimer(®) binders are developed using processes specifically
engineered to address many of the issues found with alternative affinity
molecules, such as antibodies, and offer new, innovative solutions to
bioprocessing, diagnostic and pharmaceutical scientists.
Aptamer Group has successfully delivered projects for global pharma companies,
diagnostic development companies, and research institutes covering a range of
targets and applications with the objective of establishing royalty-bearing
licenses. Through the Optimer(®) technology and processes, scientists and
collaborators are enabled to make faster, more informed decisions that support
discovery and development across the Life Sciences.
Chief Executive Officer's Statement
Aptamer Group has signed contracts across all divisions in the first half of
the year, with particular momentum in the therapeutics sector. In addition to
the revenue for the first half of £1.0 million, the Group has good visibility
on its commercial pipeline including £1.0 million in signed orders, £500,000
from two fee-for-service contracts, and a deal with a multi-national consumer
goods company worth up to £185,000. We are seeing significant and growing
traction with our blue-chip top 20 pharma company partners and our pipeline of
qualified opportunities for the second half of the year is strong.
Excellent progress has been made against our strategy, enabled by the move to
new premises in November 2022. This has allowed us to not only increase the
platform development capacity but also to support expansion of the team, that
together will enable continued delivery to meet the demand for antibody
alternatives across the life sciences.
With a focus on remaining at the forefront of aptamer technology, the
development of our proprietary Optimer(®)+ platform is continuing to undergo
internal validation. In addition, we continue to generate data packs for the
use of Optimer(®) delivery vehicles that will support increased penetration
into the therapeutics market.
Divisional Performance
Aptamer Solutions
Aptamer Solutions provides custom services for the development of
oligonucleotide-based aptamer and Optimer(®) binders for use as research
tools, quality control reagents and affinity ligands to support bioprocessing
applications.
There has been significant progress in the Aptamer Solutions business during
the period. A number of deals have been signed with organisations that require
the development of Optimer(®) solutions for assays where antibodies are not
meeting the customer specificity and selectivity requirements. Furthermore,
multiple projects were initiated to support a top five pharmaceutical company
by developing Optimer(®) binders as novel immunohistochemistry reagents.
Aptamer has established a new contract with a biomarker services company for
the development of Optimer(®) binders to support multiplex biomarker assays
for mass spectrometry analysis. The delivery of these Optimer(®)-based assays
will ultimately improve clinical trial outcomes in drug development, through
increased sensitivity in analysis and identification of these
neurodegenerative disease biomarkers.
In addition, Aptamer signed a deal with Novavax, a respiratory disease vaccine
developer. Novavax will use Optimer(®) binders to enable multiplex analysis
and improve selectivity of their QC assays.
In the bioprocessing field, the Company signed a follow-on deal with a top ten
pharmaceutical company to develop Optimer(®) binders as affinity ligands to
support the downstream bioprocessing of novel therapeutic formats, which are
not addressed by current manufacturing processes.
Post-period end, the Company announced two substantial new contracts. One of
which involves the development of Optimer(®) binders to allow process
monitoring for an enzyme manufacturer based in Asia. Once developed, the
Optimer(®) binders will be incorporated into a biosensor, to allow the
company to conveniently monitor reactants and products in the company's
manufacturing process.
A further post-period contract win involves a follow-on project with a
multi-national consumer goods company. Following initial positive results from
an earlier project, the second deal will focus on the development of
Optimer(®) binders as novel solutions for a direct-to-consumer personal care
product.
As the need for novel biomarkers for new diseases continues to grow and novel
therapeutics are progressing through the clinic; our partners are increasingly
investigating Optimer(®) technology to meet their increasing need for
affinity ligands that can support these new targets, many of which have proven
intractable with alternative technologies. Delivering benefits of ethical
compliance, rapid development to meet tight timelines, and both
cost-efficiencies and security in supply; Optimer(®) binders are offering
much-needed innovation to enable new research and bioprocessing solutions.
Aptamer Diagnostics
Aptamer Diagnostics focuses on the development and integration of Optimer®
binders into diagnostic platforms. Optimer(®) binders offer significant
advantages, including detection of novel diagnostic targets, increased
stability and batch-to-batch consistency. Our platform supports multiple
diagnostic formats, such as Enzyme-Linked Immunosorbent Assay (ELISA), flow
cytometry, biosensors, and cell and tissue imaging.
Aptamer continues to work with a range of companies in diagnostics including
signing a contract to support Optimer(®) development for a novel prenatal and
placental diagnostic platform, with Bioliquid Innovative Genetics S.L..
As the global need for diagnostics continues to grow, Optimer(®) binders are
being explored by our partners across the diagnostic industry for a range of
applications. Their excellent target recognition, consistent and ethical
supply, temperature stability and batch reproducibility, enable simple global
logistics and position our Optimer(®)-based tests as an antibody alternative
for use in diagnostics.
Aptamer Therapeutics
Aptamer Therapeutics delivers contract research services in the field of
therapeutics, using our Optimer(®) platform to develop binders for use as
Optimer(®)-drug conjugates, Optimer(®)-enabled gene therapies, and
Optimer(®) agonists and antagonists for therapeutic application.
The Aptamer Therapeutics business had good momentum in deal flow during 2022,
reflecting the significant challenge in the delivery of functional
therapeutics to tissues beyond the liver. There is significant interest in the
development of Optimer(®) binders against therapeutically relevant cell or
tissue targets, for subsequent conjugation to (and delivery of) therapeutic
cargos.
Firstly, a second phase of an ongoing collaboration was secured with Cancer
Research UK. This collaboration aims to develop a bispecific Optimer(®) for
the treatment of Chronic Myelomonocytic Leukaemia (CMML) and other myeloid
malignancies. Development of the therapeutic Optimer(®) portion of the
molecule has proven successful, and the second phase of the project aims to
develop an Optimer(®) delivery vehicle that will allow transport of the
therapeutic unit, specifically to CMML cells, to improve the effectiveness of
the drug and reduce potential off-target effects.
In the field of optimers as direct therapeutics, an early-stage deal has been
signed to develop Optimers to temporarily block the activity of naturally
occurring antibodies within the body for use as a potential therapy to prevent
transplant rejection. The binders generated from this work may support both
therapeutic function and the development of a companion diagnostic panel.
Post-period end, Aptamer announced a substantial new contract with BaseCure
Therapeutics, a pre-clinical stage biotech company dedicated to the discovery
and development of innovative siRNA-based medicines. Aptamer and BaseCure will
work together to develop cell-targeting Optimer(®) binders that could be used
as potential delivery vehicles to improve siRNA uptake into target cells and
tissues. If this Optimer-directed targeted delivery is successful, this would
offer new therapeutic opportunities of siRNA-mediated gene knockdown in these
target cells and tissues.
Targeted delivery of therapeutic payloads remains a significant challenge,
particularly within the emerging field of gene therapy. Optimer(®) binders
have a significant advantage as small, oligonucleotide-based molecules offer a
novel solution for our partners to overcome some of the challenges faced in
the delivery of diverse payloads from gene therapies to targeted radiotherapy.
Optimer(®) advantages include increased tissue penetration, low
immunogenicity, and the potential for convenient manufacture as contiguous
molecules or site-directed conjugation for simpler analysis of critical
therapeutic attributes.
Operational progress
Aptamer Group continues to accelerate growth and increase capacity over
multiple verticals to deliver more solutions and higher value engagements
with customers. A summary of our delivery against each of these three areas is
provided below:
1. To increase capacity, enabling simultaneous handling of hundreds of
targets
The move to larger, custom-fitted premises in November has enabled Aptamer
Group to increase the capacity of our Optimer(®) platform. This includes the
incorporation of increased automation in our processes, building on the
capacity of our current platform with additional equipment in order to enhance
efficiency and remove bottlenecks. The new facilities have tripled the
Company's previous footprint, helping to expand its capacity to deliver novel
binders for researchers across the bioprocessing, diagnostic and drug
development sectors. The custom designed laboratory spaces allow more
efficient workflows and has space to meet future capacity requirements. In
addition to Optimer(®) discovery and development, a portion of the new lab
space is dedicated to validation and assay development to provide turn-key
solutions for our partners.
2. To develop our proprietary scaffold technology and protection of these
technologies via patents
The integration of our novel nucleotide chemistry platform, Optimer(®)+
remains on track, with the validation of this novel nucleotide chemistry
currently underway. The development of this platform and its subsequent
discovery processes is integral to our mission to stay at the forefront of
aptamer technologies.
3. To accelerate commercial expansion, data pack development, service
development and upgrade systems and IT in line with the expanded business'
requirements
The assay development team was established over the course of 2022. Aptamer's
new premises includes dedicated laboratory space for the team, which serves to
demonstrate Optimer(®) functionality as an additional service offering.
Projects utilizing this development service are currently progressing through
the lab to support customers and internal R&D work. We are also developing
data packs to demonstrate the functionality of Optimer(®) binders as
therapeutic delivery vehicles to enable improved outcomes from the traction we
are seeing with partners in the therapeutic space.
R&D developments
Integration of the Optimer(®)+ platform continues, which has the potential to
improve the performance of our existing technology, differentiate us in the
affinity ligand market and allow us to enter new markets and address new
targets.
We have seen great traction in the therapeutics space for the use of
Optimer(®) binders as delivery vehicles for diverse cargos, from gene
therapies, such as siRNA and antisense oligonucleotides (ASO), to drugs for
precision chemotherapies. To support the development of further strategic
collaborations in the drug delivery tools space, we have progressed R&D
studies to deliver Optimer(®) binders to specific therapeutic targets and
validate in vitro functionality.
People
During the first half, Aptamer's headcount increased to 55 (from 49 as at 30
June 2022).
Following the period end, two significant appointments have been made to the
Senior Leadership Team, with the appointment of Dr Rob Quinn as Chief
Financial Officer and Company Secretary, and Derek Smith as interim Chief
Commercial Officer.
Dr Rob Quinn served as CFO of Silence Therapeutics from 2019 to 2021, an
AIM-listed biotech company developing siRNA oligonucleotide technology to
treat disease, where he oversaw the growth of the company from $50m to $500m
market capitalisation. Subsequently, he was CFO at BenevolentAI and Pharnext.
He brings a wealth of scientific and financial experience, with particular
expertise in publicly listed biotechnology and pharmaceutical companies.
Derek Smith joined Aptamer Group in 2018 as Director of Global Sales and has
since become a vital part of the team at Aptamer Group. He oversees the
development and implementation of the Company's global sales strategy and
securing contracts across all three business divisions, including with a
number of major pharmaceutical companies.
Macro environment
The Board and senior management team actively monitor risk factors that could
potentially affect the business, including the wider macroeconomic environment
and global supply chain to ensure that the business is well placed to act and
mitigate such risks where possible. To date, Aptamer has seen limited impact
from such macro factors, however, the Group will continue to proactively
monitor these risks.
Summary and outlook
The first half of the financial year has seen new contracts signed across all
business units for Aptamer Group, with strong contract signing post-period end
and visibility of a significant number of potential orders already in place
for the second half of the year.
In line with our strategy, we completed the move to new premises in November.
This has allowed us the necessary space to increase development capacity and
expand the team as we seek to meet the increased demand for antibody
alternatives. We continue to focus on key data packs, demonstrating
applications of the Optimer platform that will allow us to capitalise on
future partnerships and the increasing traction we continue to see within the
therapeutic space.
Looking ahead, we anticipate significantly higher revenues in the second half
with a material uplift occurring in the final quarter of our financial year,
as many of the current contracted development projects near completion or
begin secondary phases. In addition, we have a strong and growing pipeline of
qualified opportunities reflecting the increasing global demand for our
services and recognition across the life sciences market of the technology's
capabilities and value. This large and varied pipeline of opportunities gives
us belief in the positive momentum and longer term potential of the business
and, although timing and conversion rates for these opportunities carry some
uncertainty, we believe that we can deliver revenue in line with market
expectations for the full year.
Financial review
Revenue
Revenue for the six months ended 31 December 2022 was £1.0 million compared
to £1.4 million for the prior year period. As in previous years, revenues for
the full year will be second half weighted. Orders signed in the first half of
the year are expected to contribute £1.0 million of revenue in the second
half of the year along with revenue from orders received and delivered in the
second half.
Gross profit
Gross profit for the first half of the financial year was £0.5 million and
remained in line with the same period last year. Despite lower sales, this was
due to a 6% increase in gross margin from 39% in the first half of FY22 to 45%
in the first six months of FY23.
Administrative expenses
Administrative expenses were £3.0 million for the first six months of the
year compared to £1.2 million for the same period last year. This increase in
costs primarily reflects the expansion of the team from 41 at 31 December 2021
to 55 at 31 December 2022 and the increase in spend on research and
development activities.
Research and development costs
During the first half of the financial year the Group expensed £0.4 million
(H1 2022: £0.2 million) within Administrative expenses on research and
development costs as it continued to develop the Optimer®+ platform
technology and the design and optimisation of novel aptamer library
architectures.
Adjusted EBITDA
Adjusted EBITDA was a loss of £2.5 million for the six months ended 31
December 2022 (H1 2022: £0.6 million). The increase in loss mainly results
from additional administrative expenses.
Tax
The Group claims research and development tax credits. Since it is loss
making, the Group elects to surrender these tax credits for a cash rebate. The
benefit to the Group is included within the taxation line of the income
statement and amounts to £0.3 million for the first half of the year. Within
debtors is a corporation tax debtor of £0.9 million, which relates to
anticipated R&D tax credits in respect of claims not yet received /
submitted for the 2022 and 2023 financial years. The claim for the year to 30
June 2022 amounted to £0.5 million and was received in February 2023.
Loss for the period
The loss for the period was £2.6 million (H1 2022: £1.1 million). The basic
and diluted loss per ordinary share increased to 3.81 pence per share (H1
2022: 1.83 pence per share) based upon an average number of shares in issue
during the period of 69,022,594 (H1 2022: 60,172,013)
Cash flow
The Group had £1.9 million of cash at 31 December 2022 (H1 2022: £9.8
million, FY22: £6.7 million). The cash outflow for the six month period to 31
December 2022 was £4.8 million. This reflects an investment of £1.8 million
in the new laboratory and office space at York Science Park, EBITDA losses of
£2.5 million, £0.1 million of lease payments and a working capital outflow
of £0.4 million. The working capital outflow represents both an increase in
invoicing towards the end of the period and a reduction in year end
liabilities. The cash of £9.8 million at the prior period (31 December 2021)
included £9.6 million net funds from the IPO in December 2021.
Going concern
For the reasons set out in note 3, the Directors believe that it remains
appropriate to prepare the financial statements on a going concern basis.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME
For the six-month period ended 31 December 2022
Unaudited Unaudited Audited
6 months ended 31 December 2022 6 months year
ended 31 December 2021 ended
30 June 2022
Note £'000 £'000 £'000
Revenue 4 1,015 1,373 4,036
Cost of sales (559) (837) (1,351)
Gross profit 456 536 2,685
Administrative expenses (2,950) (1,178) (4,352)
Other operating income - - 3
Adjusted EBITDA (2,494) (642) (1,664)
Depreciation (including gain on disposal) (327) (167) (433)
Amortisation of intangible assets (22) (6) (22)
Share-based payment expense (68) (338) (457)
Operating loss 5 (2,911) (1,153) (2,576)
Finance costs (57) (23) (62)
Loss before taxation (2,968) (1,176) (2,638)
Taxation 6 336 76 545
Loss and total comprehensive expense for the (2,632) (1,100) (2,093)
period/year
Basic loss per share 7 3.81p 1.83p 3.24p
Diluted loss per share 7 3.81p 1.83p 3.24p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2022
Unaudited
Unaudited 31 December Audited
31 December 2021 30 June
2022 £'000 2022
£'000 £'000
Note
Assets
Non-current
Other intangible assets 339 319 341
Property, plant, and equipment 8 2,075 601 483
Right-of-use assets 1,161 311 1,340
Other receivables 379 - 379
3,954 1,231 2,543
Current
Inventories 463 226 420
Trade and other receivables 9 2,251 1,367 1,866
Cash and cash equivalents 1,922 9,768 6,691
4,636 11,361 8,977
Total assets 8,590 12,592 11,520
Current liabilities 10 (2,176) (3,597) (2,374)
Net current assets 2,460 7,764 6,603
Non-current liabilities (892) (56) (1,060)
Provisions for liabilities (35) (26) (35)
Net assets 5,487 8,913 8,051
Equity
Issued share capital 69 69 69
Share premium 9,573 9,561 9,573
Group reorganisation reserve 185 185 185
Share based payments reserve 603 419 538
Retained earnings (4,943) (1,321) (2,314)
Total equity 5,487 8,913 8,051
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six-month period ended 31 December 2022
Issued share Share premium Group reorganisation reserve Share-based payment reserve Retained earnings Total equity
capital
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2021 (audited) 30 5,203 185 83 (5,396) 105
Loss for the period - - - - (1,100) (1,100)
Issue of share capital 9 9,561 - - - 9,570
Bonus issue of shares 30 - - - (30) -
Capital reduction - (5,203) - - 5,203 -
Share based payments - - - 338 - 338
Release of share-based payment reserve - - - (2) 2 -
Total transactions with owners, recognised directly in equity 39 4,358 - 336 5,175 9,908
At 31 December 2021 (unaudited) 69 9,561 185 419 (1,321) 8,913
Loss for the period - - - - (993) (993)
Issue of share capital - 12 - - - 12
Share based payments - - - 119 - 119
Total transactions with owners, recognised directly in equity - 12 - 119 - 131
At 30 June 2022 (audited) 69 9,573 185 538 (2,314) 8,051
Loss for the period - - - - (2,632) (2,632)
Share-based payments - - - 68 - 68
Release of share-based payment reserve - - - (3) 3 -
Total transactions with owners, recognised directly in equity - - - 65 3 68
At 31 December 2022 (unaudited) 69 9,573 185 603 (4,943) 5,487
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six-month period ended 31 December 2022
Unaudited
Unaudited 6 months ended 31 December 2021 Audited
6 months ended 31 December 2022 £'000 year
£'000 ended 30 June
2022
£'000
Cash flows from operating activities
Loss for the period/year (2,632) (1,100) (2,093)
Adjustments for:
Taxation (336) (76) (545)
Finance costs 57 23 62
Depreciation 327 182 432
Amortisation 22 6 22
Gain on disposal of property, plant and equipment - (15) 1
Share-based payment expense 68 338 457
Increase in provisions - - 9
Operating cash outflow before changes in working capital (2,494) (642) (1,655)
Increase in inventory (43) (136) (330)
Increase in debtors (48) (790) (1,433)
(Decrease)/increase in creditors (309) 1,770 445
Cash (outflow)/inflow from operations (2,894) 202 (2,973)
Income taxes received - 364 598
Net cash (used in) / generated from operating activities (2,894) 566 (2,375)
Cash flows from investing activities
Purchase of property, plant, and equipment (1,741) (507) (277)
Proceeds on disposal of property, plant, and equipment - 98 -
Purchase of intangible assets (20) (103) (141)
Net cash used in investing activities (1,761) (512) (418)
Cash flows from financing activities
Issue of share capital, net of issue costs - 9,570 9,582
Repayment of borrowings (5) (5) (10)
Payment of lease liabilities (52) (197) (395)
Interest paid (57) (23) (62)
Net cash (used in) / generated from financing activities (114) 9,345 9,115
Net (decrease)/increase in cash and cash equivalents (4,769) 9,399 6,322
Cash and cash equivalents at beginning of the period/year 6,691 369 369
Cash and cash equivalents at end of the period/year 1,922 9,768 6,691
NOTES TO THE FINANCIAL STATEMENTS
For the six-month period ended 31 December 2022
1. GENERAL INFORMATION
Aptamer Group plc ('the Company') is a limited company domiciled and
incorporated in England and Wales. The interim consolidated financial
statements of the Company for the six-month period ended 31 December 2022
comprise the Company and its subsidiaries (together referred to as 'the
Group').
The address of the Company's registered office is Windmill House, Innovation
Way, Heslington, York, YO10 5BR.
This interim report was authorised for issue in accordance with a resolution
of the Directors on 13 March 2023.
2. BASIS OF PREPARATION
These results for 31 December 2022 and 31 December 2021 are unaudited. The
disclosed figures are not statutory accounts in terms of Section 435 of the
Companies Act 2006. Statutory accounts for the year ended 30 June 2022 on
which the auditors gave an audit report which was unqualified, have been filed
with the Registrar of Companies. The auditor has reported on those accounts;
their report was unqualified and did not contain a statement under Section
498(2) or (3) of the Companies Act 2006; though it did include a reference to
a matter to which the auditor drew attention by way of emphasis without
qualifying their report in relation to going concern. The annual financial
statements of the Group are prepared in accordance with UK adopted
International Financial Reporting Standards (IFRS) and, as regards the Parent
Company financial statements, as applied in accordance with the provisions of
the Companies Act 2006.
This interim report has been prepared on a basis consistent with the
accounting policies expected to be applied for the year ending 30 June 2023,
and uses the same accounting policies and methods of computation applied for
the year ended 30 June 2022.
3. GOING CONCERN
The Group has reported a loss after tax for the six months ended 31 December
2022 of £2.6 million (six months ended 31 December 2021: £1.1 million). The
Group had cash balances of £1.9 million at 31 December 2022 (31 December
2021: £9.8 million).
The Directors have considered the applicability of the going concern basis in
the preparation of these interim results, which includes assessing an internal
forecast extending out to June 2024. The Directors consider that this forecast
represents a reasonable best estimate of the performance of the Group over the
period to June 2024. In the forecast, revenue is anticipated to be
significantly higher than was the case in the period to December 2022, which
is supported by a detailed pipeline of customer commitments. Within this
forecast, delivery of these expectations would ensure that the resultant
positive cashflows together with the current cash balance are sufficient to
see the Group through to profitability. The forecast also includes a
significant decrease in capital expenditure compared to the period to 31
December 2022 with the move to the new facility now complete and no material
change to headcount or other operating expenses.
The Directors have also considered reasonable likely downside scenarios, which
include:
1. Slower growth in core revenues
2. A reduction in expectations of revenue and cash from IP licencing deals
Should these downside scenarios materialise, the Company would need to seek
additional funding. The Directors have a reasonable expectation that the Group
could access further funding, from both dilutive and non-dilutive sources, the
latter including the licencing of Intellectual Property it has developed to
one or more pharmaceutical partners several of which it is in current
discussions with for such licencing deals, including potential substantial
upfront payments.
However, there can be no guarantee that the Group would be able to raise
additional funding from an equity fundraise to new and existing investors, nor
that the Group will successfully complete any of its licencing of its
intellectual property assets in the near term.
Based on the above factors the Directors believe that it remains appropriate
to prepare the interim results on a going concern basis. However, the above
factors give rise to a material uncertainty which may cast doubt over the
Group's ability to continue as a going concern and continue realising its
assets and discharging its liabilities in the normal course of business. The
financial statements do not include any adjustments that would result from the
basis of preparation being inappropriate.
4. REVENUE
An analysis of revenue, all of which relates to the sale of services, by
geographical location of the customer is given below:
6 months ended 31 December 2022 6 months ended 31 December 2021 Year ended 30 June 2022
£'000 £'000 £'000
United Kingdom 159 116 597
Europe 73 21 325
Rest of the World 783 1,236 3,114
1,015 1,373 4,036
All assets are located in, and services delivered from, the United Kingdom.
5. OPERATING LOSS
The operating loss for the period/year is stated after charging
Year ended 30 June 2022
6 months ended 31 December 6 months ended 31 December
2022 2021
£'000 £'000 £'000
Research and development expensed 393 228 848
Depreciation of property, plant, and equipment 149 78 97
Depreciation of right-of-use assets 178 104 276
Amortisation of intangible assets 22 6 22
6. TAXATION
The Group's tax credit for the six months ended 31 December 2022 was £336,000
(six month's ended 31 December 2021: £76,000; year ended 30 June 2022:
£545,000).
Within debtors is a corporation tax debtor of £882,000, which relates to
anticipated R&D tax credits in respect of claims not yet received /
submitted for the 2022 and 2023 financial years. The claim for the year to 30
June 2022 amounted to £532,000 and was received in February 2023.
At 31 December 2022 the Group had unrelieved tax losses of approximately
£6,498,000 (30 June 2022 - £3,805,000). A deferred tax asset has not been
recognised in respect of these losses.
7. LOSS PER SHARE
6 months 6 months ended 31 December 2021
ended 31 December Year ended 30 June 2022
2022
Basic loss per share 3.81p 1.83p 3.24p
Diluted loss per share 3.81p 1.83p 3.24p
Loss for the period/year £2,632,000 £1,100,000 £2,093,000
Weighted average number of ordinary shares used as the denominator in 69,022,594 60,172,013 64,546,622
calculating the basic/diluted loss per share
8. PROPERTY, PLANT AND EQUIPMENT
Leasehold improvements Other property, plant and equipment
£'000 £'000 Fixtures, fittings and equipment
£'000
Total
£'000
Cost
At 1 July 2021 - 572 30 602
Additions - 346 10 356
Disposals - (10) - (10)
At 30 June 2022 (audited) - 908 40 948
Additions 555 141 1,045 1,741
At 31 December 2022 (unaudited) 555 1,049 1,085 2,689
Accumulated depreciation
At 1 July 2021 - 301 17 318
Charge for the year - 93 4 97
Disposals - (9) - (9)
Impairment - 59 - 59
At 30 June 2022 (audited) - 444 21 465
Charge for the period 29 61 59 149
At 31 December 2022 (unaudited) 29 505 80 614
Net book values
31 December 2022 (unaudited) 526 544 1,005 2,075
30 June 2022 (audited) - 464 19 483
9. TRADE AND OTHER RECEIVABLES
31 December 31 December 30 June
2022 2021 2022
£'000 £'000 £'000
Trade receivables 748 446 629
Corporation tax recoverable 882 311 545
Other receivables 459 358 525
Prepayments 162 252 167
2,251 1,367 1,866
Trade receivables at the reporting date are shown net of impairment for
estimated irrecoverable amounts of £150,000 (six months ended 31 December
2021: £nil; year ended 30 June 2022: £nil). Impairment losses are
recognised for expected credit losses on trade receivables where there is an
increased probability that the counterparty will not settle the debt on the
contractual due date.
10. CURRENT LIABILITIES
31 December 31 December 30 June
2022 2021 2022
£'000 £'000 £'000
Interest-bearing loans and borrowings 359 147 248
Trade payables 643 1,884 514
Other taxation and social security 115 206 105
Other payables - - 234
Accruals 756 353 959
Deferred income 303 1,007 314
2,176 3,597 2,374
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