REG - Aptamer Group PLC - Interim Results
28/03/2024 07:15
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RNS Number : 6110I Aptamer Group PLC 28 March 2024
28 March 2024
Aptamer Group plc
("Aptamer", the "Company" or the "Group")
Interim results for the six months ended 31 December 2023
Fundraising complete, R&D development progress and cost base reset
Aptamer Group plc (AIM: APTA), the developer of novel Optimer(®) binders to
enable innovation in the life sciences industry, today announces its unaudited
interim results for the six months ended 31 December 2023.
Financial highlights (H1 2023)
· Revenue £0.3 million (H1 2023: £1.0 million)
· Cash balance at 31 December 2023 of £1.8 million (H1 2023: £1.9
million)
· Adjusted EBITDA loss of £1.8 million (H1 2023: £2.5 million)
· Recapitalised with £3.5 million in two equity placings.
· Completed the reset of the fixed cost base to £3.5 million per annum
in September 2023, whilst maintaining the ability to win sales and deliver
projects.
Operational highlights
· Follow-on deal with a US-based vaccine development company to
develop Optimer(®) binders as QC reagents was signed in July.
· Refreshed Board in August with pre-IPO Chairman and co-founder
returning to support and direct the team to revenue generation & technical
delivery.
· Contracts agreed in August with a top five pharmaceutical company
to develop multiple Optimer(®) binders for different applications across both
pipeline assets and early discovery targets.
· Process improvements have been successfully trialled and
implemented across the platform in October to support lower sample
requirements, increase capacity and improve project margins.
· Developed broader portfolio of post-development validation assays
to increase revenue and improve translation into functional products.
· Agreement in December to the value of up to approximately £0.6
million with a genetic medicines company for Optimer(®) targeting of genetic
medicines to specific cell types.
· Contract signed in December with a US-based biotechnology company
for Optimer(®)-Fc reagent development to new targets.
Post-period highlights
· Developed binders for a top five pharma company undergoing
external validation for IHC, with initial results reported as promising and
leading to a commercial request for more material in January.
· Entered the second phase of development with Neuro-Bio in
February, to deliver additional Optimer(®) binders to support Alzheimer's
lateral flow test development.
· Technical progress to date in developing the new affinity ligand
platform, Optimer(®)+, was made in February, highlighting the improved
results compared to the current Optimer(®) platform, and good tolerance in
animal studies, demonstrating its potential for use in therapeutics.
· In February, results from a gene therapy delivery partnership
with a top 15 pharmaceutical company, have led to their request to validate
the material in their own labs. This material is currently being manufactured
at Aptamer Group for shipment.
· Partnership with Unilever announced in March, following
successful testing of developed Optimer(®) binders by Unilever to support
novel applications in fast moving consumer goods, with patent applications for
the binders now being prepared.
Commenting on the interim results, Stephen Hull, Chairman of Aptamer Group,
said: "The strong technical delivery in the first half of the year, includes
the new demonstration of binder performance in gene therapy delivery and IHC,
and we are pleased that large pharmaceutical company partners have shown
significant interest in binders developed for both of these applications. The
data generated in these key focus areas is supporting ongoing marketing
activities, and the developed expertise at Aptamer Group is being applied to
customer projects to support improved protocols and faster adoption of our
Optimer(®) technology. Additionally, our new affinity ligand platform,
Optimer(®)+, has been further developed with results showing excellent
performance and its viability for therapeutic use from initial animal studies.
Positive validation of Optimer(®) performance both in-house from our own
scientific team and from external partners has resulted in interest in the
licensing of current assets, which remains part of our strategy, particularly
within the key focus areas of drug delivery and IHC, where we have identified
a specific market need that Optimer(®) and our new Optimer(®)-Fc platform
are well placed to address.
The Group has continued to make encouraging progress since recapitalising in
August, rebuilding the pipeline of sales opportunities and reinvigorating
operations through the laboratory. We are seeing increasing conversion of
the deal pipeline, including repeat business being won and the potential for
large deals in the drug delivery space."
Webinar
Dr Arron Tolley (Chief Technical Officer), Dr David Bunka (Chief Scientific
Officer) and Andrew Rapson (Chief Financial Officer) will provide a live
presentation relating to the Interim Results via Investor Meet Company on 28
March 2024, 15:00 GMT.
The live presentation is open to all existing and potential shareholders.
Questions can be submitted pre-event via your Investor Meet Company dashboard
up until 27 March 2024, 09:00 GMT, or at any time during the live
presentation.
Investors can sign up to Investor Meet Company for free and add to meet
Aptamer Group Plc via:
https://www.investormeetcompany.com/aptamer-group-plc/register-investor
(https://www.investormeetcompany.com/aptamer-group-plc/register-investor)
Investors who already follow Aptamer Group Plc on the Investor Meet Company
platform will automatically be invited.
- End -
For further information, please contact:
Aptamer Group plc
Steve Hull
+44 (0) 1904 217 404
SPARK Advisory Partners Limited - Nominated Adviser
Andrew Emmott / Adam
Dawes
+44 (0) 20 3368 3550
Turner Pope Investments - Broker
James Pope / Andrew Thacker
+44 (0) 20
3657 0050
About Aptamer Group plc
Aptamer Group (https://aptamergroup.com/) (https://aptamergroup.com/)
develops custom affinity binders through its proprietary Optimer(®) platform
to enable new approaches in therapeutics, diagnostics, and research
applications. The Company strives to deliver transformational solutions that
meet the needs of life science researchers and developers.
Optimer(®) binders are oligonucleotide affinity ligands that can function as
an antibody alternative. The global affinity ligand market is currently worth
over $170 billion.
Aptamer has successfully delivered projects for a range of global pharma
companies, diagnostic development companies, and research institutes, covering
multiple application areas with the objective of establishing royalty-bearing
licenses.
Chairman's Statement
Aptamer Group has signed contracts with a number of new and repeat customers,
including major pharmaceutical companies, in the first half of the year.
Following the recapitalising of the business in August 2023, the new
management team has worked hard to implement its strategy and rebuild customer
confidence, whilst demonstrating the performance of the technology platform
through increased delivery of technical data. Despite first half revenues
below previous market expectations, £0.8 million of deals were signed in
December 2023 contributing to a signed deals pipeline today of £1.3 million,
which are at various stages of being progressed through the laboratory to
recognise as revenue.
With a focus on remaining at the forefront of aptamer technology, the initial
demonstration of our proprietary Optimer(®)+ platform has yielded positive
results, particularly for its application in the therapeutic space. In
addition, we continue to see particular interest for our current binders in
drug delivery, where there is a recognised market need for new delivery
mechanisms to support targeting drugs to different tissues. We aim to continue
to build the required data and binders to meet the needs of this sector and
increase penetration into the high value 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.
Since the Company was recapitalised in August 2023, several deals have been
signed with partners that require Optimer(®) development to enable improved
assay solutions for discovery and pipeline assets. In addition to supporting
customers with new projects where antibodies have proven intractable, we are
also seeing a number of returning customers, demonstrating the performance of
the platform.
Two new projects were initiated with a top five pharmaceutical partner, to
develop Optimer(®) binders for use in research assays and
immunohistochemistry (IHC). This builds on the adoption of our Optimer(®)-Fc
platform for use in automated IHC workflows. These contracts represent repeat
custom, with over ten contracts now signed with this pharma partner,
signifying the increasing confidence in Optimer(®) technology and keenness to
adopt this within major life science companies.
Within the first half of the year, further repeat business was seen with a
follow-on contract signed with a US-based vaccine development company.
Following initial positive results in an earlier project, the partner
sought further Optimer(®) development to viral targets as critical reagents
for their QC assays.
Following the launch of the Optimer(®)-Fc platform to support new reagent
solutions for IHC in the second half of FY23, the first half of this financial
year saw the initial contract signed for Optimer(®)-Fc development. The
developed Optimer(®)-Fc is intended as a critical reagent to support patient
stratification for clinical trials. This agreement is with a US-based
oncology-focused biotechnology company, with the potential for further
licensing on success.
Aptamer established a new partnership with a US-based gene therapy company for
the development of Optimer(®) binders to key biomarkers in neurodegenerative
disease. The Optimer(®) binders will be used with an antibody in a sandwich
pair format to advance neuroscience disease research where alternative
affinity ligands have previously failed to deliver the required performance.
In the bioprocessing field, the Company signed a new deal with a top ten
pharmaceutical company to develop Optimer(®) binders as affinity ligands to
support the downstream bioprocessing of advanced therapy medicinal products.
The binders will be used to streamline the manufacturing process and offer
enhanced purification of the product, solutions for which are not currently
available within the market.
During the period, progress in validating Optimer(®) binders developed for
Unilever has been positive. External validation of the Optimer(®) binders by
Unilever has been successful and, post period, Aptamer and Unilever are now
working to patent these binders for use in novel fast moving consumer goods
applications.
Post period end, the Company announced that Optimer(®) binders previously
developed for a top five pharmaceutical company have shown promising results
in the partner's own IHC validation studies. Validation studies are ongoing
with this partner and may result in a license.
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 the 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 to support diagnostic
development with Optimer(®) binders. Post period, the Company entered the
second phase of development with the UK-based biotechnology company Neuro-Bio
Ltd. Following success in the first development phase delivering Optimer(®)
binders to Neuro-Bio's biomarker for Alzheimer's disease, Aptamer has agreed
the development of additional binders to form an Optimer(®) pair that will
enable a wholly Optimer(®)-based lateral flow test for the early diagnosis of
Alzheimer's disease.
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.
Within the Aptamer Therapeutics business, a material contract was signed with
a genetic medicines company for the development of Optimer(®) binders to
enable the targeted gene therapy delivery to specific cell types. The deal
comprises up to approximately £0.6 million in development fees with the
potential for further licensing upon successful demonstration of the binders.
Post period end, Aptamer announced that Optimer(®) binders developed for a
top 15 pharmaceutical company to enable gene therapy delivery, have
demonstrated selective delivery and gene knockdown in our own lab-based
experiments. Based upon the inhouse results of these binders, the
pharmaceutical partner has requested the material for their own validation,
with a view to licensing the molecule if successful.
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
As part of the Company's strategy set by the newly appointed Board during the
period, Aptamer Group is focused on increasing commercial traction to drive
high impact partnerships and delivering process improvements through the
current Optimer(®) platform, while maintaining a tight cost discipline. A
summary of our delivery against each of these three areas is provided below:
1. To achieve EBITDA and cash break-even position
Following the recapitalisation of the Company and appointment of the new Board
in August, the Company set challenging targets to reach EBITDA and cash
break-even within two years. This remains the Board's aim. The new Board and
strategy to deliver process improvements and marketing data are now helping to
produce a qualified pipeline of opportunities that are evidence of tangible
progress towards that target.
A reset of Aptamer's cost base was completed by 30 September, 2023. This
included the reduction of previously budgeted costs for premises, overheads
and development, directors and staff, from approximately £6.4 million in the
year ended 30 June 2023, to approximately £3.5 million for the current
financial year. As part of this process, there was a reduction in operational
headcount to the level required to meet forecasted revenues, where the top
performers were retained and incentivised, and a reduction in the Company's
operational footprint. This reset of the cost base, along with continued tight
cost discipline, is intended to support the move towards a positive cash flow
position over the next two years.
2. To implement platform process improvements and generate marketing data
Improving the Optimer(®) platform processes allow increased margins and
enables improved services for customers. The first wave of process
improvements has been completed and integrated into the platform, streamlining
production for increased capacity and reduced customer material requirements.
Further process improvements are ongoing to reduce development timelines and
improve success rates, with new updates being trialed prior to implementation
within the platform. The Group anticipates that this work will be completed by
June 2024.
Additionally, a range of post-development validation assays have been added to
the Group's service offering. This broader range of functional assays
enables demonstration of the performance of Optimer(®) binders in the same
end use applications that partners wish to adopt. Validation and assay
development services offer additional revenue from fee-for-service projects
and support faster translation of the technology to the Company's partners,
whilst also delivering high quality data to support marketing activities.
Data generation for marketing purposes evidences the applications of the
Optimer(®) platform to increase technology adoption. Data generation has
focused on two specific areas: Optimer(®)-based pharmaceuticals for gene
therapy delivery and precision chemotherapy and the Optimer(®)-Fc platform
for the immunohistochemistry (IHC) market.
Lab-based experiments at Aptamer Group using developed Optimer(®) binders for
gene therapy delivery have shown selective delivery and gene knockdown. This
data was recently presented at the Biologics UK conference and has also
resulted in a request from a top 15 pharmaceutical partner to trial the
Optimer(®) within their laboratories, with a view to licensing, if
successful. This Optimer(®) can be tailored for the delivery of multiple gene
therapy or chemotherapeutic conjugates, with the potential to form a series of
novel pharmaceutical entities. Further validation work is continuing in-house
to increase this data pack and support the commercial licensing of this
product.
The development of our novel Optimer(®)-Fc platform for IHC applications uses
custom-developed target-specific Optimer(®) binders conjugated to an antibody
Fc portion. This 'plug-and-play' affinity toolkit could allow the simple
integration of Optimer(®) binders into existing commercial automated IHC
workflows to support improved processes for current targets and enable the
development of novel biomarkers in automated IHC applications. The progress
made in validating this platform resulted in the first commercial contract for
Optimer(®)-Fc tools being signed in December 2023, valued at up to £147,500.
A patent application protecting this platform has now been submitted.
Additional IHC validation of a broader panel of Optimer(®) binders and the
Optimer(®)-Fc reagents is continuing in-house and is anticipated to be
completed by July 2024, providing complete data packs and technical know-how
for marketing in this field.
3. To increase commercial traction and broaden the market for our
technology
The new strategy for the delivery of improved validatory data in the focus
areas of targeted drug delivery and IHC has supported increased commercial
traction since the beginning of the period. We anticipate this progress will
continue, allowing the core fee-for-service offering to expand and act as a
horizon-scanning platform for future license fee opportunities while the Group
moves toward profitability.
In the first half, a material agreement was signed with a genetic medicines
company for targeted drug delivery at the value of up to £0.6 million,
contributing to over £1.3 million of signed deals currently being processed
or awaiting processing through the laboratory. The Company expects to progress
the £1.3 million of signed work and a proportion of an additional £2.9
million of contracts in advanced-stage negotiations through the laboratory
before the end of the financial year, subject to target material being
delivered by customers in a timely manner and scientific attrition.
A continued focus on licensing the Optimer(®) technology has resulted in the
emergence of a number of potential opportunities within the current pipeline
post period end. While management is aware of the long timeframes associated
with reaching and securing licensing agreements, earlier projects are starting
to come to fruition and may contribute to revenue over the next two years. An
ongoing partnership with a top 15 pharmaceutical company for gene therapy
delivery has resulted in their request to validate the developed binders in
their own laboratories, with a view to licensing if successful. Additionally,
a top five pharma partner is currently evaluating developed Optimer(®)
binders for IHC, with initial results reported as promising. Finally, the
current partnership with a Unilever for binders to support novel applications
in fast moving consumer goods is progressing to patenting following positive
results at Aptamer Group and Unilever's labs. This will allow the next stage
of commercial advancements with our partner.
The increasing commercial traction developed over the first half of the year
demonstrates that there is a continued demand for Optimer(®) binders across
the life sciences, with traction in the drug delivery space, where high value
and high impact contracts can be targeted. As we progress the partnership in
the fast-moving consumer goods space, we aim to translate this potential of
Optimer(®) technology into additional markets for a broader market
penetrance. To support increased commercial traction new marketing materials
and a new Company website are under development, which are expected to launch
this year.
R&D developments
Following the Fundraise in August 2023, £0.3 million was ringfenced to
support R&D activities within the Company. These funds have been put to
good use, with strong developments in demonstrating Optimer(®) delivery of
functional gene therapies, validation of Optimer(®) binders and the
Optimer(®)-Fc platform in IHC, and the progression of our novel affinity
ligand platform, Optimer(®)+.
Results generated for Optimer(®) drug delivery and IHC during the first half
of the year have been used to support marketing activities. Ongoing R&D
activities in these areas will bolster the available evidence to support
increased adoption whilst further increasing the team's technical knowledge in
these fields. The developed in-house expertise in drug delivery and IHC
applications can be applied to customer specific projects to support with
improved protocols and allow faster adoption of the Optimer(®) technology
within customer labs for improved downstream success.
Work to develop the novel Optimer(®)+ platform has resulted in the
demonstration of the new affinity ligands as possessing improved performance
and development times compared to the current platform, as well as being
stable and well tolerated in mice, indicating the basic requirements for
therapeutic use. Optimer(®)+ uses a modified oligonucleotide library that
creates hybrid Optimer(®)-peptide binders engineered with a scaffold
structure that bridge the gap between traditional aptamers and protein-based
affinity ligands and occupy a niche between large biologics and small molecule
drugs. Development of the new platform is ongoing at Aptamer Group, alongside
discussions with partners to scale manufacturing processes. The new platform
is expected to launch to the market in FY25.
Board and Senior Management Changes
During the first half, the Board was restructured to include Stephen Hull
returning to the Company as Executive Chairman after leading the Group to
flotation in 2021 with Dr Arron Tolley. Dr Tolley returned as Chief Technical
Officer, while Dr David Bunka moved to Chief Scientific Officer to concentrate
on research and development activities for the Group. Dean Fielding and Dr
Adam Hargreaves joined the Company as new Independent Non-Executive Directors.
Dean Fielding is an experienced senior company director with extensive prior
involvement as a board member of listed companies. Dr Adam Hargreaves is a
board-certified pathologist who brings a broad range of expertise in both
diagnostics and early-stage pharmaceutical efficacy and safety development to
support Aptamer's technical strategy. The Company intends to appoint a Chief
Executive Officer when appropriate to do so.
Andrew Rapson, the previous Head of Finance, was promoted to Chief Financial
Officer and Company Secretary, and Alastair Fleming remains as Chief Operating
Officer.
The previous Board members, Dr Ian Gilham (Executive Chairman), Dr Rob Quinn
(Interim Chief Executive Officer and Chief Financial Officer), Dr John
Richards (Non-Executive Director) and Angela Hildreth (Non-Executive
Director), resigned on 21 August 2023. We thank them for their service over
the prior 20 months.
Macro environment
The Board and senior management team continue to monitor risk factors that
could affect the business. These risks include the wider macroeconomic
environment and global supply chain, with the management team actively working
to ensure that the business is well placed to act on and mitigate such risks
where possible.
In FY23, the reduction in available investment and tighter budgeting across
the life science industry impacted the Group's pipeline conversion numbers as
clients, from top pharma companies to small biotech companies, had reduced
available budgets for R&D outsourcing. Additionally, many of our partners'
projects stalled, and licensing revenue was slower to achieve than
anticipated. The new Board has responded to this by resetting Company targets
during the period and moving focus to fee-for-service revenue, with product
licensing removed from the revenue forecast until clearer timelines are
available.
Summary and outlook
Since the Fundraise in August 2023 and reset of Company management, strategy
and cost base there has been significant progress against targets within
Aptamer Group, with strong technical delivery leading to growing commercial
traction.
The pipeline of opportunities has now been rebuilt and is beginning to convert
to sales, with sustained momentum expected into the second half of the
financial year. We continue to see interest in our technology platform from
across the life science field, indicating a clear demand for antibody
alternatives, with increasing repeat business from partners including major
pharmaceutical companies.
To support the identified opportunities for the Optimer(®) platform, the
board has focused on the generation of validatory data, making excellent
technical progress during the period within the focus areas of drug delivery
and IHC. This is now supporting marketing activities to strengthen the
opportunity pipeline. Additionally, the observed traction with developed
Optimer(®) binders undergoing evaluation at partner companies indicates the
capabilities of the platform with the potential to capitalise on subsequent
downstream licensing revenues that will drive long term profitability for
Aptamer.
The Company has made excellent technical progress with the new Optimer(®)+
programme and expects this platform to expand the capability of its binders in
all applications, especially in precision medicine. The technology is fully
protected with a portfolio of granted patents, ensuring the Company retains
exclusive rights for all uses of the new system. Evaluation processes are
ongoing within the Company and with external partners to optimise the
development and large-scale manufacturing protocols, with an active marketing
strategy to follow.
Financial review
Revenue
Revenue for the six months ended 31 December 2023 was £0.3 million (H1 2022:
£1.0 million) following a lull in customer confidence and limited
availability of working capital in the lead up to the completion of a
fundraise in August 2023. Revenues for the full year are anticipated to be
second half weighted following the signing of £0.8 million of orders in
December 2023. These orders, together with previously signed orders where we
are awaiting customer material to be delivered to us, will contribute to
revenue in the second half of this financial year.
Gross loss/profit
Gross profit for the first half of the financial year was £nil (2022: £0.5
million) as a result of low revenue. There is limited variability in the staff
costs contained within cost of sales at these levels of revenue, which has
resulted in the erosion of gross margin. Otherwise, material costs remain
variable with the level of revenue.
Administrative expenses
Administrative expenses were £1.7 million for the first six months of the
year compared to £3.0 million for the same period last year. This decrease in
costs follows the resetting of the cost base which was completed in September
2023. Headcount reduced from 46 at 30 June 2023 to 37 at 31 December 2023.
Research and development costs
During the first half of the financial year the Group expensed £0.2 million
(H1 2023: £0.4 million) within Administrative Expenses on research and
development costs related to the Optimer-Fc platform for immunohistochemistry
(IHC), building a body of data for Optimer-based gene therapy and precision
chemotherapy, and process improvements to streamline the production process.
Adjusted EBITDA
Adjusted EBITDA was a loss of £1.8 million for the six months ended 31
December 2023 (H1 2023: £2.5 million). The decrease in loss mainly results
from a reduction in 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 £0.1 million for the first half of the year. Within
current assets is a corporation tax debtor of £0.6 million, which relates to
anticipated R&D tax credits in respect of claims not yet received /
submitted for the 2023 and 2024 financial years. The claim for the year to 30
June 2023 amounted to £0.5 million and was received in January 2024.
Loss for the period
The loss for the period was £1.8 million (H1 2023: £2.6 million). The basic
and diluted loss per ordinary share decreased to 0.50 pence per share (H1
2023: 3.81 pence per share) based upon an average number of shares in issue
during the period of 359,338,261 (H1 2023: 69,022,594)
Cash flow
The Group had £1.8 million of cash at 31 December 2023 (H1 2023: £1.9
million, FY23: £0.2 million). The cash inflow for the six-month period to 31
December 2023 was £1.5 million. During the period proceeds of £3.5m, net of
costs, were received from fundraises in August 2023 and September 2023. Net
cash used in operations totaled £1.8 million, which reflected operating
losses for the period. Within this operating outflow creditors decreased by
£0.4 million, which had built up at the year-end prior to the completion of
the fundraise.
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 2023
Unaudited Unaudited Audited
6 months ended 31 December 2023 6 months year
ended 31 December 2022 ended
30 June 2023
Note £'000 £'000 £'000
Revenue 4 298 1,015 1,752
Cost of sales (324) (559) (1,393)
Gross profit (26) 456 359
Administrative (1,735) (2,950) (5,034)
expenses
Other operating income 2 - 3
Adjusted EBITDA (1,759) (2,494) (4,672)
Depreciation (including gain on disposal) (107) (327) (3,077)
Amortisation of intangible assets (5) (22) (324)
Share-based payment expense (1) (68) (84)
Operating loss 5 (1,872) (2,911) (8,157)
Finance income 11 - -
Finance costs (42) (57) (141)
Loss before taxation (1,903) (2,968) (8,298)
Taxation 6 96 336 462
Loss and total comprehensive expense for the (1,807) (2,632) (7,836)
period/year
Basic loss per share 7 0.50p 3.81p 11.35p
Diluted loss per share 7 0.50p 3.81p 11.35p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2023
Unaudited
Unaudited 31 December Audited
31 December 2022 30 June
2023 £'000 2023
£'000 £'000
Note
Assets
Non-current
Other intangible assets 99 339 70
Property, plant, and equipment 9 494 2,075 561
Right-of-use assets 233 1,161 160
Other receivables 373 379 373
1,199 3,954 1,164
Current
Inventories 132 463 204
Trade and other receivables 10 313 1,369 678
Tax receivable 568 882 473
Cash and cash equivalents 1,756 1,922 234
2,769 4,636 1,589
Total assets 3,968 8,590 2,753
Current liabilities
Trade and other payables 11 (882) (1,817) (1,329)
Borrowings (99) (34) (50)
Leases (313) (325) (264)
(1,294) (2,176) (1,643)
Net current assets/(liabilities) 1,475 2,460 (54)
Non-current liabilities
Trade and other payables (5) - (7)
Borrowings (14) - (19)
Leases (630) (892) (745)
Provisions for liabilities (35) (35) (35)
(684) (927) (806)
Net assets 1,990 5,487 304
Equity
Issued share capital 467 69 69
Share premium 12,672 9,573 9,578
Group reorganisation reserve 185 185 185
Share based payments reserve 460 603 544
Accumulated losses (11,794) (4,943) (10,072)
Equity attributable to shareholders 1,990 5,487 304
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six-month period ended 31 December 2023
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 2022 (audited) 69 9,573 185 538 (2,314) 8,051
Loss for the period - - - - (2,632) (2,632)
Share based payments - - - 68 - 68
Exercise & forfeited equity-settled share-based payments - - - (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
Loss for the period - - - - (5,204) (5,204)
Issue of share capital - 5 - - - 5
Share based payments - - - 16 - 16
Exercise & forfeited equity-settled share-based payments - - - (75) 75 -
Total transactions with owners, recognised directly in equity - 5 - (59) - (59)
At 30 June 2023 (audited) 69 9,578 185 544 (10,072) 304
Loss for the period - - - - (1,807) (1,807)
Issue of ordinary shares, net of issue costs 398 3,094 - - - 3,492
Share-based payments - - - 1 - 1
Exercise & forfeited equity-settled share-based payments - - - (85) 85 -
Total transactions with owners, recognised directly in equity 398 3,094 - (84) 85 3,493
At 31 December 2023 (unaudited) 467 12,672 185 460 (11,794) 1,990
On 31 July 2023 the Directors announced a significant new fundraising event
which resulted in a firm placing of 10,318,390 ordinary shares for total
proceeds of £0.1 million, a conditional placing of 339,281,610 ordinary
shares for total proceeds of £3.4 million and a subscription of 10,400,000
ordinary shares for total proceeds of £0.1 million, all before expenses.
The conditional placing and subscription shares were approved at a General
Meeting on 17 August 2023, and total net proceeds were £3.2 million.
On 19 September 2023 the Group completed a further fundraising through the
issue of 28,251,956 ordinary shares by way of a subscription and placing.
This fundraise resulted in total gross proceeds of £0.3 million before
expenses.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six-month period ended 31 December 2023
Unaudited
Unaudited 6 months ended 31 December 2022 Audited
6 months ended 31 December 2023 £'000 year
£'000 ended 30 June
2023
£'000
Cash flows from operating activities
Loss for the period/year (1,807) (2,632) (7,836)
Adjustments for:
Taxation (96) (336) (462)
Finance costs 42 57 141
Amortisation 5 22 324
Depreciation 107 327 3,077
Share-based payment expense 1 68 84
Operating cash outflow before changes in working capital (1,748) (2,494) (4,672)
Decrease/(increase) in inventory 72 (43) 216
Decrease/(increase) in debtors 365 (48) 648
Decrease in creditors (446) (309) (790)
Cash outflow from operations (1,757) (2,894) (4,598)
Income taxes received - - 534
Net cash used in operating activities (1,757) (2,894) (4,064)
Cash flows from investing activities
Purchase of property, plant, and equipment (6) (1,741) (1,975)
Purchase of intangible assets (34) (20) (53)
Net cash used in investing activities (40) (1,761) (2,028)
Cash flows from financing activities
Issue of share capital, net of issue costs 3,492 - 5
Proceeds from borrowings 89 - -
Repayment of borrowings (45) (5) (37)
Payment of lease liabilities (175) (52) (192)
Interest paid (42) (57) (141)
Net cash generated from / (used in) financing activities 3,319 (114) (365)
Net increase/(decrease) in cash and cash equivalents 1,522 (4,769) (6,457)
Cash and cash equivalents at beginning of the period/year 234 6,691 6,691
Cash and cash equivalents at end of the period/year 1,756 1,922 234
NOTES TO THE FINANCIAL STATEMENTS
For the six-month period ended 31 December 2023
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 2023
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 27 March 2024.
2. BASIS OF PREPARATION
These results for 31 December 2023 and 31 December 2022 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 2023 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 2024,
and uses the same accounting policies and methods of computation applied for
the year ended 30 June 2023.
3. GOING CONCERN
The Group has reported a loss after tax for the six months ended 31 December
2023 of £1.8 million (six months ended 31 December 2022: £2.6 million).
The Group had a cash balance of £1.8 million at 31 December 2023 (31 December
2022: £1.9 million). Since that date, the Group has received R&D tax
credits of £0.5 million and at 29 February still had a cash balance of £1.8
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 2025. The Directors consider that this
forecast represents a reasonable best estimate of the performance of the Group
over the period to June 2025. In the forecast, the cash runway extends well
into the next financial year, but does not extend more than 12 months from the
date of these interim results. As a result, additional revenue or funding
would be required to allow the Group to continue executing its plans. The
Directors have a reasonable expectation that the Group will be able to access
further funding, which could come from a variety of dilutive and non-dilutive
sources, the latter including the licencing of intellectual property it has
developed to one or more pharmaceutical partners, one of which it is in
discussions with for such a licencing deal.
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 licensing 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 to 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.
5. 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 2023 6 months ended 31 December 2022 Year ended 30 June 2023
£'000 £'000 £'000
United Kingdom 64 159 427
Europe 38 73 134
Rest of the World 196 783 1,191
298 1,015 1,752
All assets are located in, and services delivered from, the United Kingdom.
6. OPERATING LOSS
The operating loss for the period/year is stated after charging:
Year ended 30 June 2023
6 months ended 31 December 6 months ended 31 December
2023 2022
£'000 £'000 £'000
Employee remuneration 1,147 - 3,264
Share-based payments 1 - 84
Research and development expensed 170 393 474
Depreciation of property, plant, and equipment 73 149 401
Depreciation of right-of-use assets 34 178 355
Amortisation of intangible assets 5 22 44
Impairment of property, plant and equipment - - 1,609
Impairment of right-of-use assets - - 712
Impairment of inventories charged as cost of sales - - 181
7. TAXATION
The Group's tax credit for the six months ended 31 December 2023 was £96,000
(six month's ended 31 December 2022: £336,000; year ended 30 June 2023:
£462,000).
Within debtors is a corporation tax debtor of £568,000, which relates to
anticipated R&D tax credits in respect of claims not yet received /
submitted for the 2023 and 2024 financial years. The claim for the year to 30
June 2023 amounted to £473,000 and was received in January 2024.
At 31 December 2023 the Group had unrelieved tax losses of approximately
£10,551,000 (30 June 2023 - £9,033,000). A deferred tax asset has not been
recognised in respect of these losses, except for losses recognised against
deferred tax liabilities against which the losses will automatically unwind
(and which are accordingly offset).
8. LOSS PER SHARE
6 months 6 months ended 31 December 2022
ended 31 December Year ended 30 June 2023
2023
Basic loss per share 0.50p 3.81p 11.35p
Diluted loss per share 0.50p 3.81p 11.35p
Loss for the period/year £1,807,000 £2,632,000 £7,836,000
Weighted average number of ordinary shares used as the denominator in 359,338,261 69,022,594 69,055,369
calculating the basic/diluted loss per share
9. PROPERTY, PLANT AND EQUIPMENT
Leasehold improvements Other property, plant and equipment
£'000 £'000 Fixtures, fittings and equipment
£'000
Total
£'000
Cost
At 1 July 2022 - 908 40 948
Additions 1,603 363 9 1,975
Disposals - (31) (5) (36)
Transfer - 217 - 217
At 30 June 2023 (audited) 1,603 1,457 44 3,104
Additions 1 5 - 6
At 31 December 2023 (unaudited) 1,604 1,462 44 3,110
Accumulated depreciation
At 1 July 2022 - 444 21 465
Charge for the year 270 126 5 401
Disposals - (31) (5) (36)
Impairment 988 604 17 1,609
Transfer - 104 - 104
At 30 June 2023 (audited) 1,258 1,247 38 2,543
Charge for the period 48 24 1 73
At 31 December 2023 (unaudited) 1,306 1,271 39 2,616
Net book values
31 December 2023 (unaudited) 298 191 5 494
30 June 2023 (audited) 345 210 6 561
10. TRADE AND OTHER RECEIVABLES
31 December 31 December 30 June
2023 2022 2023
£'000 £'000 £'000
Trade receivables 23 748 356
Other receivables 120 459 145
Prepayments 170 162 177
313 1,369 678
Trade receivables at the reporting date are shown net of impairment for
estimated irrecoverable amounts of £nil (six months ended 31 December 2022:
£150,000; year ended 30 June 2023: £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.
11. CURRENT LIABILITIES
31 December 31 December 30 June
2023 2022 2023
£'000 £'000 £'000
Trade payables 287 643 656
Other taxation and social security 63 115 85
Other payables - - 8
Accruals 319 756 463
Deferred income 213 303 117
882 1,817 1,329
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