REG - Physiomics PLC - Interim Results
07/03/2024 07:00
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RNS Number : 8992F Physiomics PLC 07 March 2024
( )7 March 2024
Physiomics Plc
("Physiomics") or (the "Company")
Interim Results Statement
for the six-month period ended 31 December 2023
Physiomics plc (AIM: PYC), a leading mathematical modelling and data science
company supporting the development of new therapeutics and personalised
medicine solutions, today announces its unaudited financial results for the
six months ended 31 December 2023.
Summary financial results
· Revenue of £374k (six months ended 31 December 2022: £338k)
· Total income of £382k* (six months ended 31 December 2022:
£346k*)
· Operating loss of £236k (six months ended 31 December 2022:
£287k)
· Cash and cash equivalents of £403k at 31 December 2023 (31
December 2022: £498k)
· Shareholders' funds of £672k at 31 December 2023 (31
December 2022: £762K)
* Total income for the six months ended 31 December 2023 includes other
operating income, being grant income, of £8k (grant income for six months
ended 31 December 2022: £8k).
Total income was £36k higher than the comparable prior period, due to a £36k
increase in client revenues. There was a small early contribution from the
Innovate UK grant announced in November 2023. Operating losses were £51k
lower than the comparable previous period largely due to increased revenues
but also cost efficiencies, including an optimised utilisation of permanent
staff versus external consultants and move to new flexible office space. Due
to changes in the R&D Tax regime and given our anticipated mix of SME
& RDEC work, the tax reimbursement continues a downward trend and is
anticipated to be reduced by a third when compared to FY23. The Company
finished the half year with shareholder funds of £672k at 31 December 2023
(compared with £762k at 31 December 2022), of which £403k were cash and
equivalents.
The Company continued to broaden the client mix over the course of the last
six-month period, minimising its reliance on one large client (representing
16% of revenue in this period) to providing consultancy services to a range of
clients. In addition, the business continues to move towards a more balanced
mix of repeat versus new business, with 33% of revenue in the period deriving
from new clients. This mix is also reflected in the business development
pipeline, where over 40% of active opportunities are with new clients (as of
31 December 2023).
Operational Highlights
Key events in the period include:
· Follow on contracts with existing clients Bicycle
Therapeutics, Merck KGaA and Numab Therapeutics
· Award of a £125k contract with a new UK-based biotech client
· Appointment of COO, Dr Peter Sargent, who has, post period,
become CEO
· Announcement of intention to build a new biostatistics
service line
· Award of an Innovate UK grant to further develop Physiomics'
personalised dosing tool, with the project to be led by Physiomics and
projected to run until October 2025 - total award is £570k, of which
Physiomics will receive £137k of direct funding
Key events after the period end:
· Dr Peter Sargent appointed as CEO, with Dr Jim Millen
continuing to support the business as Non-Exec Chairman
· Award of a new contracts with existing clients Numab
Therapeutics
· Announcement of £45k grant funding from Yorkshire Cancer
Research for the Company to support the University of Sheffield (project to
start in second half of this calendar year)
Chairman and CEO's business strategy update
The Directors are pleased that the Company is on track to meet expectations,
which, if achieved, would mean a significant increase in total income compared
with the financial year ended 30 June 2023. The Company continues to build
its portfolio of smaller and medium sized biotech customers with the award of
a significant contract by an important new UK-based client, the retention and
expansion of business activities with several existing clients and the award
of two new grants funded by Innovate UK and Yorkshire Cancer Research.
Consulting business based on modelling & simulation using Virtual
Tumour™ and other tools
As noted above, the Company has continued to broaden the client mix with the
addition of a new UK-based biotech client and the award of three follow on
contracts with existing SME clients. The Company took the opportunity to
publicise its work through the presentation of a poster based on project work
with client Ankyra Therapeutics at the prestigious EORTC-NCI-AACR
International Conference on Molecular Targets and Cancer Therapeutics in
Boston last October.
The Company's pipeline of potential new business now stands at over £1.5m
(not risk weighted and excluding Biostatistics), counting only opportunities
where a specific project has been discussed with a client. The Company is
working hard to both convert opportunities that have progressed to proposal
stage and also to refill the funnel with earlier stage opportunities. A
significant number of new client contracts are now originating from both
scientific conferences (such as EORTC-NCI-AACR & AACR Annual Meeting) as
well as more business focused meetings (such as BioEurope) and as such the
Company intends to significantly increase its presence at such meetings over
the course of this calendar year.
Personalised oncology
In November 2023, the Company was delighted to announce the award of a further
Innovate UK grant of £137k, to be recognised by the Company between the award
date and anticipated completion in October 2025. The total value of the
project, split between the Physiomics and co-applicants Beyond Blood
Diagnostics and Blackpool Teaching Hospitals NHS Foundation Trust, is
anticipated to be £571k. The aim of the project will be to gather clinical
data to enable the Company's tool to be used to support decision making on the
dosing of both chemotherapy, as well as the expensive biological drug G-CSF.
The partnership with Beyond Blood Diagnostics, which is developing a
miniaturised device to measure blood counts, could potentially facilitate the
use of the Company's tool in primary care or even home settings. In parallel
with this grant-funded activity, the Company remains in close contact with
DoseMe regarding how it can progress its collaboration focused on the
commercialisation of the Company's dosing tool in the US and further
announcements on this will be made when appropriate.
Biostatistics service line
The Company was excited to announce its intention to develop a separate
consulting service line focused on the delivery of biostatistics projects.
Several complementary options are being pursued simultaneously to build out
this new capability and a further update will be provided to the market
towards the end of the current financial year. We anticipate that, if
successful, this new service line could make a material contribution to the
Company's revenues and bottom line in the financial year ending 30 June 2025.
Board composition
The promotion of Dr Peter Sargent to CEO and associated move by Dr Jim Millen
to Non-Executive Chairman of the Company completes the restructuring of the
Board for now to better align with good governance principles as set out by
AIM and the QCA Code.
Outlook
The Directors believe the Company will continue to trade in line with market
expectations.
Enquiries:
Physiomics plc
Dr Peter Sargent, CEO
+44 (0) 01235 841575
Strand Hanson Ltd (NOMAD)
James Dance & James Bellman
+44 (0)20 7409 3494
Hybridan LLP (Corporate 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 has been
confirmed by over 100 projects, involving over 50 targets and 75 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 2023
Unaudited Unaudited Audited
Half year to Half year to Year ended
31-Dec-23 31-Dec-22 30-Jun-23
£'000 £'000 £'000
Revenue 374 338 598
Other operating income 8 8 8
Total income 382 346 606
Operating expenses (618) (633) (1,180)
Operating loss (236) (287) (574)
Finance Income 1 - 2
Loss before taxation (235) (287) (572)
Income tax income 29 56 95
Loss for the period attributable to equity shareholders (206) (232) (477)
Loss per share (shown in pence)
Basic and diluted (0.15) p (0.24) p (0.49) p
Physiomics Plc
Unaudited Statement of financial position as at 31 December 2023
Unaudited Unaudited Audited
As at As at As at
31-Dec-23 31-Dec-22 30-Jun-23
£'000 £'000 £'000
Non-current assets
Intangible assets 5 3 5
Property, plant and equipment 5 14 8
10 17 13
Current assets
Trade and other receivables 380 446 244
Cash and cash equivalents 403 498 417
783 944 661
Total assets 793 961 674
Current liabilities
Trade and other payables (105) (104) (122)
Deferred revenue (16) (95) (20)
Total liabilities (121) (199) (142)
Net assets 672 762 532
Capital and reserves
Share capital 1,435 1,283 1,283
Capital reserves 6,278 6,237 6,084
Profit & loss account (7,041) (6,758) (6,835)
Equity shareholders' funds 672 762 532
Physiomics Plc
Unaudited Statement of changes in equity for the half year ended 31 December
2023
Share Share-based Total
Share premium compensation Retained shareholders'
capital account reserve earnings funds
£'000 £'000 £'000 £'000 £'000
At 1 July 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
Transfer to other reserves - - 14 - 14
Other Movements - - (168) 168 -
Loss for the period - - - (245) (245)
At 30 June 2023 1,283 5,936 148 (6,835) 532
Paid in Capital 152 - - - 152
Issue of Share Capital - 186 - - 186
Transfer to other reserves - - 8 - 8
Loss for the period - - - (206) (206)
At 31 December 2023 1,435 6,122 156 (7,041) 672
Physiomics Plc
Unaudited Cash Flow Statement for the half year ended 31 December 2023
Unaudited Unaudited Audited
Half year to Half year to Year ended
31-Dec-23 31-Dec-22 30-Jun-23
£'000 £'000 £'000
Cash flows from operating activities:
Operating loss (236) (287) (574)
Amortisation and depreciation 4 4 10
Share-based compensation 9 19 34
(Increase) decrease in receivables (82) 19 155
Increase / (decrease) in payables (43) (22) (4)
Increase / (decrease) in deferred revenue (4) 81 6
Net cash generated from / (used in) operations (352) (186) (373)
UK corporation tax received - - 106
Net cash generated from / (used in) operating activities (352) (186) (267)
Cash flows from investing activities:
Purchase of non-current assets, net of grants received (1) (4) (6)
Interest received 1 - 2
Net cash used in investing activities - (4) (4)
Cash flows from financing activities:
Issue of ordinary share capital (net of costs) 338 - -
Net cash generated from financing activities 338 - -
Net (decrease) / increase in cash and cash equivalents (14) (190) (271)
Cash and cash equivalents at beginning of period 417 688 688
Cash and cash equivalents at end of period 403 498 417
Physiomics Plc
Notes to the Interim Financial Statements
1. General information
Physiomics Plc is a public limited company ("Physiomics" or the "Company")
incorporated in England & Wales (registration number 4225086). The Company
is domiciled in the United Kingdom and its registered address is Bee House,
140 Eastern Avenue, Milton Park, Abingdon, Oxfordshire, OX14 4SB. 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.
Physiomics is engaged in providing consulting services to pharmaceutical
companies in the areas of outsourced quantitative system pharmacology and
PK/PD modelling, using a combination of industry standard technologies and its
own proprietary technology platform, Virtual Tumour™. In simple terms,
this means helping companies to put the right drugs together, at the right
dose, in the right patient to help achieve the best possible results at the
lowest cost.
2. Basis of preparation
The interim financial statements of the Company for the six months ended 31
December 2023, 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 2023, 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 2023. Those statutory accounts, upon which
the auditors, Shipleys LLP, issued a report which was unqualified, 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" and 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 where otherwise
indicated.
3. Loss per share
Basic loss per share is 0.15p (H1 2022: loss per share 0.24p). The basic loss
per ordinary share is calculated by dividing the loss of £206,118 (H1 2022:
loss £231,754) by 135,056,656 (H1 2022: 97,424,778), 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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