REG - Physiomics PLC - Interim Results

PhysiomicsAnnouncement

07/03/2023 07:00

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RNS Number : 0723S  Physiomics PLC  07 March 2023

7 March 2023

Physiomics Plc

 

("Physiomics") or (the "Company")

 

Interim Results Statement

for the six-month period ended 31 December 2022

 

Physiomics plc (AIM: PYC), the oncology consultancy using mathematical models
to support the development of cancer treatment regimens and personalised
medicine solutions, today announces its unaudited financial results for the
six months ended 31 December 2022.

 

Summary financial results

·        Revenue of £338k (six months ended 31 December 2021: £366k)

·        Total income of £346k* (six months ended 31 December 2021:
£395k*)

·        Operating loss of £287k (six months ended 31 December 2021:
£170k)

·        Cash and cash equivalents of £498k at 31 December 2022 (31
December 2021: £794k)

·        Shareholders' funds of £762k at 31 December 2022 (31
December 2021: £1.08m)

 

* Total income for the six months ended 31 December 2022 includes other
operating income, being grant income, of £8k (grant income for six months
ended 31 December 2021: £29k).

 

Total income was £49k lower than the comparable prior period, of which £21k
was due to a reduction in grant income following the completion of the NIHR
funded PARTNER study.  Operating losses were £117k higher than the
comparable previous period due to higher staffing costs and a return to
physical conference attendance after several years of virtual attendance.
The Company finished the half with shareholder funds of £762k at 31 December
2022 (compared with £1.08m at 31 December 2021) of which £498k were cash and
equivalents.

 

The Company has significantly enhanced its sales and business development
process under its new Business Development lead resulting in better management
and tracking of the pipeline and higher conversion rates into projects.  At
least partly as a result of this, the Company has significantly diversified
its client base over the course of the last year, with approximately 62% of
its total revenue for this half being derived from six small / medium sized
clients (compared with four representing 33% of revenues in the comparable
previous period).

 

 

Operational highlights

 

Key events in the period include:

·        Follow on contracts with existing clients Merck KGaA, Numab
Therapeutics and Ankyra Therapeutics

·        First contract directly with Cancer Research UK (relating to
the clinical development of Aleta Biotherapeutics ALETA-001)

·        Successful completion of the NIHR-sponsored PARTNER study at
Portsmouth Hospitals University NHS Trust

·        Appointment of a second highly experienced independent
Non-Executive Director, Shalabh Kumar

 

Key event after the period end:

·        Announcement by partner DoseMe on 17 February 2023 of its
acquisition by an affiliate of Fairlong Capital LLC as of 20 January 2023

 

 

Chairman and CEO's business strategy update

 

The Directors are pleased with the Company's continued ability to attract new
clients as well as to secure repeat business from existing customers.  The
successful completion of the NIHR-sponsored PARTNER study appears to offer
several avenues to further develop the Company's personalised dosing
technology platform.  Lastly, the Directors note the significant
diversification of the Company's revenues away from a single large client in
Merck KGaA (known locally as EMD Serono) ("Merck"), which they believe
significantly mitigates the risk of relying on a single main source of
revenue, notwithstanding Merck continues to be an important relationship with
the Company.

 

Consulting business based on modelling & simulation using Virtual
Tumour™ and other tools

 

The Company was pleased to sign its first agreement directly with Cancer
Research UK (CRUK) relating to the development of Boston-based biotech Aleta
Biotherapeutics' ALETA-001.  Together with Bicycle Therapeutics, Ankyra
Therapeutics and Merck, this represents Physiomics' fourth current client
relationship in the Boston area.

 

The Company also attended the Society for Immunotherapy in Cancer (SITC)
conference in Boston in November 2022 where it co-presented a poster with
client Numab Therapeutics.  At the conference, the Physiomics team visited
existing clients and established contact with four other companies with which
discussions regarding possible projects are currently ongoing.  As noted
above, these sorts of business development initiatives have in large part been
responsible for the significant diversification of the Company's business
pipeline away from a single large client.  Other marketing initiatives
planned for this calendar year include attendance at conferences such as
BIOEurope in March and the American Association for Cancer Research Annual
Meeting (AACR) in April.

 

Personalised oncology

 

At the beginning of this calendar year, the Company was delighted to announce
the successful completion of its NIHR-sponsored PARTNER study at Portsmouth
Hospitals University NHS Trust.  Building on work completed under two
previous grants from Innovate UK, the data from the study was analysed using
the Company's personalised dosing tool which confirmed the ability of the tool
to predict levels and timing of episodes of low white blood cell count
associated with use of docetaxel in prostate cancer.  Trial data further
suggested there is potential for the tool to be used to predict the effect of
GCSF (granulocyte-colony stimulating factor), a drug commonly used to increase
white blood cell count during chemotherapy.  The Company believes that the
tool would be highly synergistic with a device that can measure blood cells
counts in community or out-patient settings and in addition believes that the
results merited further exploration of the use of the tool in other settings
including, for example, haematology and paediatrics.

 

Other areas

 

In addition to the areas noted above, the Company is actively considering how
it could expand its business beyond its current consulting services areas as
follows:

·        Expansion into therapy areas other than cancer

·        Expansion into consulting areas adjacent to those currently
serviced

·        Application of the Company's capabilities (e.g. machine
learning and other AI related areas) to pharmaceutical R&D

 

Board composition

 

The Company retained a second, highly experienced, Non-Executive Director,
Shalabh Kumar on 1 September 2023.  After a successful career in consulting,
Mr Kumar co-founded a life sciences consultancy and services business which
was sold to private equity.  Mr Kumar brings a wealth of experience in the
setting up and growth of life sciences services businesses.

 

Outlook

 

We are looking forward to a solid second half (historically stronger due to
absence of summer and Christmas holiday periods), underpinned by significant
contracted revenues from Merck, Bicycle Therapeutics, CRUK and Ankyra, as well
as other potential projects which are currently in late-stage discussions.

 

Enquiries:

 

Physiomics plc

Dr Jim Millen, CEO

+44 (0)1865 784 980

 

Strand Hanson Ltd (NOMAD)

James Dance & James Bellman

+44 (0)20 7409 3494

 

Hybridan LLP (Broker)

Claire Louise Noyce

+44 (0)20 3764 2341

 

Notes to Editor

 

About Physiomics

Physiomics plc (AIM: PYC) is an oncology consultancy using mathematical models
to support the development of cancer treatment regimens and personalised
medicine solutions. The Company's Virtual Tumour™ technology uses computer
modelling to predict the effects of cancer drugs and treatments to improve the
success rate of drug discovery and development projects while reducing time
and cost. The predictive capability of Physiomics' technologies have been
confirmed by over 100 projects, involving over 40 targets and 70 drugs, and
has worked with clients such as Merck KGaA, Astellas, Merck & Co and
Bicycle Therapeutics.

 

 

 

 

 Physiomics Plc

 Unaudited Statement of Comprehensive Income for the half year ended 31
 December 2022

                                                          Unaudited                     Unaudited                               Audited
                                                          Half year to                  Half year to                            Year ended
                                                          31-Dec-22                     31-Dec-21                               30-Jun-22
                                                          £'000                         £'000                                   £'000

 Revenue                                                  338                           366                                     830

 Other operating income                                   8                             29                                      71

 Total income                                             346                           395                                     901

 Operating expenses                                       (633)                         (565)                                   (1,260)

 Operating loss and loss before taxation                  (287)                         (170)                                   (359)

 UK corporation tax                                       55                            50                                      106

 Loss for the period attributable to equity shareholders  (232)                         (120)                                   (253)

 

 

 Loss per share (pence)
                         (0.24)  p  (0.12)  p  (0.26)  p

 Basic and diluted

 

 

Physiomics Plc

 Unaudited Statement of financial position as at 31 December 2022

                                Unaudited       Unaudited    Audited
                                As at           As at        As at
                                31-Dec-22       31-Dec-21    30-Jun-22
                                £'000           £'000        £'000

 Non-current assets
 Intangible assets              3               3            3
 Property, plant and equipment  14              17           14
                                17              20           17

 Current assets
 Trade and other receivables    446             485          410
 Cash and cash equivalents      498             794          688
                                944             1,279        1,098

 Total assets                   961             1,299        1,115

 Current liabilities
 Trade and other payables       (104)           (82)         (126)
 Deferred revenue               (95)            (137)        (14)
 Total liabilities              (199)           (219)        (140)

 Net assets                     762             1,080        975

 Capital and reserves
 Share capital                  1,283           1,283        1,283
 Capital reserves               6,237           6,190        6,218
 Profit & loss account          (6,758)         (6,393)      (6,526)
 Equity shareholders' funds     762             1,080        975

 

 

 

 Physiomics Plc

 Unaudited Statement of changes in equity for the half year ended 31 December
 2022

                                             Share       Share-based                    Total
                             Share           premium     compensation         Retained  shareholders'
                             capital         account     reserve              earnings  funds
                             £'000           £'000       £'000                £'000     £'000

 At 1 July 2021              1,283           5,934       222                  (6,273)   1,166

 Transfer to other reserves  -               -           34                   -         34

 Loss for the period         -               -           -                    (120)     (120)

 At 31 December 2021         1,283           5,934       256                  (6,393)   1,080

 Transfer to other reserves  -               2           26                   -         28

 Loss for the period         -               -           -                    (133)     (133)

 At 30 June 2022             1,283           5,936       282                  (6,526)   975

 Transfer to other reserves  -               -           19                   -         19

 Loss for the period         -               -           -                    (232)     (232)

 At 31 December 2022         1,283           5,936       301                  (6,758)   762

 

 

 

 Physiomics Plc

 Unaudited Cash Flow Statement for the half year ended 31 December 2022

                                                               Unaudited                         Unaudited          Audited
                                                               Half year to                      Half year to       Year ended
                                                               31-Dec-22                         31-Dec-21          30-Jun-22
                                                               £'000                             £'000              £'000

 Cash flows from operating activities:

 Operating loss                                                (287)                             (170)              (359)
 Amortisation and depreciation                                 4                                 6                  12
 Share-based compensation                                      19                                34                 59
 (Increase) decrease in receivables                            19                                (174)              (163)
 Increase / (decrease) in payables                             (22)                              (32)               12
 Increase / (decrease) in deferred revenue                     81                                94                 (29)

 Net cash generated from / (used in) operations                (186)                             (242)              (468)

 UK corporation tax received                                   -                                 -                  119

 Net cash generated from / (used in) operating activities      (186)                             (242)              (349)

 Cash flows from investing activities:

 Purchase of non-current assets, net of grants received        (4)                               (7)                (9)

 Net cash used in investing activities                         (4)                               (7)                (9)

 Cash flows from financing activities:

 Issue of ordinary share capital (net of costs)                -                                 -                  3

 Net cash generated from financing activities                  -                                 -                  3

 Net (decrease) / increase in cash and cash equivalents        (190)                             (249)              (355)

 Cash and cash equivalents at beginning of period              688                               1,043              1,043

 Cash and cash equivalents at end of period                    498                               794                688

 

 

 

 

 

 

 

 

Physiomics Plc

 

Notes to the Interim Financial Statements

 

1.   General information

 

Physiomics Plc is a public limited company ("the Company") incorporated in
England & Wales (registration number 4225086). The Company is domiciled in
the United Kingdom and its registered address is The Magdalen Centre, Robert
Robinson Avenue, The Oxford Science Park, Oxford, OX4 4GA. The Company's
ordinary shares are traded on the AIM Market of the London Stock Exchange
("AIM"). Copies of the interim report are available from the Company's
website, www.physiomics.co.uk. Further copies of the Interim Report and Annual
Report and Accounts may be obtained from the address above.

 

The Company's principal activity is the provision of services to
pharmaceutical companies in the area of outsourced systems and computational
biology.

 

2.   Basis of preparation

 

The interim financial statements of the Company for the six months ended 31
December 2022, which are unaudited, have been prepared in accordance with the
accounting policies set out in the annual report and accounts for the year
ended 30 June 2022, which were prepared under International Financial
Reporting Standards ("IFRS").

 

The financial information contained in the interim report does not constitute
statutory accounts as defined in Section 435 of the Companies Act 2006. The
financial information for the full preceding year is based on the statutory
accounts for the year ended 30 June 2022. Those accounts, upon which the
auditors, Shipleys LLP, issued a report which was unqualified but contained an
emphasis of matter paragraph, have been delivered to the Registrar of
Companies.

 

As permitted, this interim report has been prepared in accordance with the AIM
Rules for Companies and not in accordance with IAS 34 "Interim Financial
Reporting" therefore it is not fully compliant with IFRS.

 

The interim financial statements are presented in sterling and all values are
rounded to the nearest thousand pounds (£'000) except when otherwise
indicated.

 

3.   Loss per share

 

Basic loss per share is 0.24p (H1 2021: loss per share 0.12p). The basic loss
per ordinary share is calculated by dividing the loss of £231,754 (H1 2021:
loss £120,382) by 97,424,778 (H1 2021: 97,334,778), the weighted average
number of shares in issue during the period.

 

The loss attributable to equity holders (holders of ordinary shares) of the
Company for calculating the fully diluted loss per share is identical to that
used for calculating the loss per share. The exercise of share options would
have the effect of reducing the loss per share and is therefore anti-
dilutive.

 

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