REG - Proteome Sciences - Final Results
10/04/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250410:nRSJ4038Ea&default-theme=true
RNS Number : 4038E Proteome Sciences PLC 10 April 2025
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation.
10 April 2025
Proteome Sciences plc
("Proteome Sciences" the "Company" or the "Group")
Final results for the year ended 31 December 2024
The Company is pleased to announce its audited results for the year ended 31
December 2024.
Highlights:
· Total revenues of £4.89m (2023: £5.03m)
· TMT(®) reagent sales, and royalties of £4.01m (2023: £3.40m)
· Proteomic services revenues of £0.87m (2023: £1.63m)
· Gross profit £0.67m (2023: £1.65m)
· Loss after tax £3.41m (2023: £2.44)
· Cash at year end £1.13m (2023: £2.03m)
· Cost of sale and administrative costs £7.24m (2023: £6.65m)
· Adjusted EBITDA* loss of £1.48m (2023: loss of £0.92m)
* EBITDA is a non-GAAP company specific measure which is considered to be a
key performance indicator of the Group's financial performance. Adjusted
EBITDA is calculated as operating profit before depreciation (including
right-to-use assets amortisation), amortisation, non-recurring costs, and
employee share-based payment.
Executive Chairman of Proteome Sciences plc, commented:
The back end of 2024 showed a good recovery from the impact of the global
downturn in the biotech and pharma markets over the previous year. Following
the considerable increase in customer orders and services in the second half
of 2024 we are pleased to reiterate that the momentum from the second half of
last year has continued into 2025 with the pipeline now extending well into
2026.
We are optimistic that our proteomics business has gone through a significant
inflection point and that it can deliver substantial increases and returns in
the future.
Report and Accounts and Notice of Annual General Meeting:
Copies of the Annual Report and Accounts together with notice of the Annual
General Meeting ("AGM") will be posted to shareholders shortly and made
available on the Company's website (www.proteomics.com
(http://www.proteomics.com) ).
The AGM of the Company will take place at 12 noon on Friday 16 May 2025 at
Allenby Capital, 5 St Helen's Place, London, EC3A 6AB. Formal notice of
the AGM will be sent to shareholders which will contain further information
and the resolutions which will be proposed at this meeting.
For further information please contact:
Proteome Sciences plc
Dr. Ian Pike, Chief Scientific Officer Tel: +44 (0)20 7043 2116
Richard Dennis, Chief Commercial Officer
Allenby Capital Limited (Nominated Adviser & Broker)
John Depasquale / Lauren Wright (Corporate Finance) Tel: +44 (0) 20 3328 5656
Tony Quirke / Stefano Aquilino (Equity Sales & Corporate Broking)
About Proteome Sciences plc. (www.proteomics.com (http://www.proteomics.com/)
)
Proteome Sciences plc is a specialist provider of contract proteomics services
to enable drug discovery, development and biomarker identification, and
employs proprietary workflows for the optimum analysis of tissues, cells and
body fluids. SysQuant® and TMT(®)MS2 are unbiased methods for identifying
and contextualising new targets and defining mechanisms of biological
activity, while analysis using Super-Depletion and TMTcalibrator™ provides
access to over 8,500 circulating plasma proteins for the discovery of
disease-related biomarkers. Targeted assay development using mass spectrometry
delivers high sensitivity, interference-free biomarker analyses in situations
where standard ELISA assays are not available.
Executive Chairman's Statement
In the first half of 2024 our proteomics business was adversely affected by
the challenging background to the biotech and pharma markets with reduced
R&D budgets and continued postponement of projects which had carried over
from 2023. Following the £1.0m reduction in revenues in the interim results
to £2.22m (H1 2023: £3.21m) we are pleased to report that the second half
recovery anticipated at that time materialised with a 47% increase in H2 to
£2.67m (2023 £1.82m) with full year revenue for the year to 31 December 2024
returning to £4.89m (2023: £5.03m) reflecting strong increases in services
orders and TMT. A number of the services orders commenced in H2 but the bulk
of these have carried over into 2025 representing a 10 fold increase over the
similar position at the start of 2024.
The launch and availability of TMTpro 35 plex tags had a very positive impact
in the market and TMT sales and royalties that showed a 16% reduction at the
interims to £1.85m (H1 2023: £2.20m) performed strongly in H2 with full year
revenue increased 18% to £4.01m (2023: £3.40m).
The Company won a substantial Good Clinical Laboratory Practice ("GCLP")
contract with a US biopharmaceutical company in April 2024, and the same
customer has awarded us a follow up contract to be undertaken in 2025 and
2026, part of a larger clinical study.
Proteome Sciences has now added data-independent acquisition ("DIA") (label
free) to its services offering with first client projects underway.
Good progress has been made with our new DIA multiplex tags ("DXT") with
patents filed in the summer. Discussions are underway with a shortlisted
group of prospective licencees and a licence should be concluded in 2025.
Our first commercial contract in Single Cell Proteomics ("SysQuant(®) SCP")
was secured in Q4 2024. With results available shortly we expect the number
of projects to increase sharply in 2025.
The back end of 2024 showed a good recovery from the impact of the global
downturn in biotech and pharma markets over the previous year. Following the
considerable increase in customer orders and services in the second half of
2024 we are optimistic that our proteomics business has gone through a
significant inflection point and that it can deliver substantial increases and
returns in the future.
Services
2024 followed 2023 as a challenging year in the biotech and pharma services
markets including service providers in proteomics. The year commenced with
significant headwinds as reported in many industry and financial articles at
the time. These created significant delays to subsequent biopharma financial
investments which resulted in reduced outsourcing to Contract Research
Organisation ("CRO") services at a time when CROs were already battling with
other cost contingencies.
As stated in our 2023 Annual Report and Accounts, the US is by far the most
significant market for biopharma companies outsourcing proteomic services to
CROs including Proteome Sciences. The biopharma layoffs and general slowdown
severely curtailed our order carry-over position from 2023 to 2024 and
restricted our ability to close orders at the level projected at the start of
the 2024 budgeting cycle.
Fortunately, later in H1 2024 we successfully obtained significant orders from
our US customer base, including a high value GCLP clinical sample contract
value in excess of £500k from a West Coast US biopharma company. Adding
this to other orders largely from the US enabled us to secure £950k of orders
in the first half of 2024 and that in turn started to boost Q2 service
revenue. We received over £2m in orders in 2024 mainly from the USA which
was more than 3 times the total order value in 2023.
2024 revenue was hampered by three factors in the first half of the year: the
absence of carry-over orders from 2023 into 2024, the low order uptake in H1
and that the timing of the major GCLP clinical study mentioned above would
provide sequential samples for analysis in both 2024 and 2025 with revenue
generated from 2025. Services revenue nevertheless picked up well, more than
doubling in the second half to £0.87m for the full year to 31 December 2024.
In the final quarter of 2024, we were most encouraged by the high level of
carry-over in orders into the next two financial years 2025 and 2026. These
currently total more than £1.30m at the start of 2025 with a pipeline of an
expected additional £2m of orders received that will contribute to 2025 and
2026 revenue. We have never been in such a strong position in previous years
and this should underpin significant revenue growth for the next 2 years.
The investment made in the new US laboratory was prompted by the significant
quantity of local demand received from the US West Coast. During the year we
launched our first single cell proteomics services (SCP) for academic and
commercial customers with several academic collaborations successfully
completed that should lead to publication in influential scientific
journals. We also obtained and started our first commercial biopharma
orders. As in previous years we continued to attend relevant conferences and
exhibitions throughout 2024 both in the US and Europe to combine these events
with local customer engagement, and visits.
The biopharma industry slowdown still ongoing in the early part of 2024
continued to affect our business more than expected. Fortunately, the
adverse head winds disappeared and transformed into favourable tail winds
halfway through 2024 and these transformed the market background and enabled
our services business to rapidly rebound. We purchased an additional top end
mass spectrometry system early in Q4 2024 in order to increase our capacity to
address the strong customer demand. We needed to acquire a second Exploris
mass spectrometer at the close of 2024 as a result of the burgeoning order
pipeline. The benefits from the additional capacity brought on stream will
be more fully reflected in 2025 and 2026 revenues.
Licences
We have an exclusive global license with Thermo Fisher Scientific for our
tandem mass tag reagents ("TMT(®)") and other licences using biomarkers in
stroke and Alzheimer's disease. Our wider portfolio of biomarkers, research
tools and experimental drug compounds are also available for licensing. These
include recently filed applications for a new series of tags for multiplexing
(DIA). Proteome Sciences holds registered trademarks including Tandem Mass
Tag(®), TMT(®), SysQuant(®), and applications for DIA multiplex Tags™ and
DXT.
We are actively pursuing licensing partners for the DXT reagents and expect to
move these discussions to conclusion in 2025 and are looking to perform
further validation through internal research and external grant funding to
support out-licensing of other biomarker panels.
Tandem Mass Tags(®)
Our licensing revenue comes from both direct reagent sales to Thermo Fisher
Scientific and downstream royalty payments from their sales of packaged kits.
During 2024 we saw strong recovery for both revenue streams. This was driven
by improving market conditions and higher demand from Thermo Fisher Scientific
for reagent supplies following the full launch of 35plex TMTpro(®) in June
2024. Total revenue increased by 18% to £4.01m (2023: £3.40m).
Looking forward, we anticipate further adjustments in the market as more
comparisons between TMTpro™ and DIA are published, showing that TMTpro™
provides higher precision and is better suited to identifying biomarkers in
cells and tissues and with DIA starting to compete more with the high
throughput methods available from SomaLogic and O-Link for large cohort
studies. We expect the benefits of TMTpro™ 35plex in single cell proteomics
will increase the use of tagging and size of the mass spectrometry
marketplace.
Stroke Biomarkers
There has been little visible progress from our partner Randox in completing
their European registration trials. A research-use-only test, the
Neurovascular Dysfunction Biochip, that uses several of our licensed
biomarkers is now commercially available, but the expected date for market
approval for clinical use remains unknown. We have not yet received royalties
in connection with the launched kit and continue to monitor Randox
performance.
Galaxy CCRO, the small physician-led biomarker company in the US continues
with its biomarker validation study of the FAST>ER point-of-care test using
Glutathione S-transferase pi (GSTPi). Initial results are expected at the end
of H1 2025, but preliminary data suggested the need for greater sensitivity
and Galaxy has commissioned development of a second-generation test that has
substantially improved performance. As part of the original licensing deal
Proteome Sciences own 9.7% of Galaxy's issued stock and will additionally
benefit from their other non-stroke research and development projects.
Research
During the first half of 2024 we completed several research projects. Most
notably was the synthesis of a new 6plex set of isotopic tags that enable
multiplexed data-independent acquisition (DIA) mass spectrometry. Our internal
testing showed these second-generation tags perform well for both protein
identification rates and quantitative accuracy. The DIA multipleX Tag™ (DXT)
set is currently being evaluated by key academic opinion leaders and
prospective licensing partners for use across a range of different
applications. We intend to present data on the tags in June at the 2025
American Society for Mass Spectrometry meeting.
We completed the development of a TMTpro™ 16plex SysQaunt® Single Cell
Proteomics workflow using our CellenONE platform. After c.18 months research
and development, we performed our first commercial project analysing more than
2,000 cells across multiple chips. We have refined the data analytics pipeline
to improve consistency and we are detecting an average of ~2,000 proteins per
16plex. Further research is underway to extend capacity and performance to
address the growing requirements of our customers. In parallel, our data
scientists have developed improved analysis and data visualization tools that
provide a superior user interface. This offers simplified data assembly and
automated analysis by non-expert users. Results are output into a dashboard
allowing a wide range of statistical modelling and visualizations that let
customers utilise relevant biological discoveries from their SCP studies.
Our ProteoSHOP(®) blood proteomics workflows are based on removal of the 14
most abundant proteins and deliver good performance with >2,500 proteins
detectable and 1,000 of these quantifiable across all samples in a recent
study with 150 individual samples. To improve this further we have evaluated a
number of recently introduced reagents that enrich proteins and extracellular
vesicles from serum and plasma. Our initial results are promising, increasing
the number of detected proteins to >4,500 in human serum. This has also
been tested in bovine serum and we can see significant improvements over our
previous depletion-based method that provides deeper analysis for customers in
veterinary drug and vaccine development. We have expanded our proteomics
services with the development of DIA workflows using Orbitrap Exploris mass
spectrometers. Results were encouraging with more than 13,000 proteins
detectable in human cell lines. We have also improved our computational MS and
bioinformatics processes for DIA and introduced DIA services towards the end
of the year. A full multiplexed SysQuant® DIA offering will be developed and
launched during H1 2025.
Operating Environment
Due to the macroeconomic challenges experienced in the second half of 2023 and
the first half of 2024, the carry-over in orders into 2024 was severely
depleted. Since then, the number of projects and orders secured during the
second half of the year rose sharply providing a record carry-over into 2025
of £1.30m.
The new US services facility in San Diego delivered good early customer
project results but again the challenging economic climate in the industry
continued through the first half of 2024 prompting a temporary suspension in
services in the summer pending confirmation of a better project pipeline.
Again, the background in the second half rebounded as expected and activities
in San Diego returned to normal in February 2025.
On the tag side the launch and availability of the TMTpro™ 35 plex tags had
a very positive effect in the market and helped to propel TMT revenues.
We have already added DIA (label free) to our range of services offerings with
first client projects underway and we expect multiplexed DIA to provide new
streams of revenue in 2025 and beyond.
Our innovative DIA plex tags are regarded as important future value drivers
and will accelerate after a licence is concluded with one of the major
distributors in the field of reagent tags.
Following the successful completion of a number of academic projects in SCP we
await scientific publication with considerable interest and the completion of
our first commercial orders from which we expect activity and revenue from
SCP.
As previously announced Mariola Söhngen stepped down as CEO and director on
31 January 2025. Chairman, Christopher Pearce, has taken the role of Executive
Chairman until the Company appoints an appropriate successor to become CEO. It
was also announced that Abdel Omari would step down as CFO and director on 31
January 2025, but he will then take on a part time role as financial
consultant and adviser to Proteome Sciences plc.
On behalf of shareholders, I would like to take this opportunity to thank
Mariola Söhngen and Abdel Omari for the considerable contributions that they
have made to the business over their tenure by overseeing the investments made
to develop DIA tags, SCP and establishing the US services facility in San
Diego.
At the end of a difficult year for our business and after the substantial
strategic investments that have been made for the future, we would like to
thank all our employees for their contribution, passion and hard work. We
believe that these should be transformational for future growth.
Outlook
As a result of the economic and industry background our business had to
navigate through a difficult period from the second half of 2023. Our
proteomics activities remained healthy with a good and growing order book with
the translation into revenues delayed but which started to rapidly rebound in
the second half of 2024.
With strong increases in orders for both TMT and our services business we were
convinced that the downturn in the biotech and pharma markets was behind us.
We consequently decided to invest further in additional machine capacity and
staff at the close of 2024 to address the growing customer demand.
We are pleased to reiterate that the momentum from the second half of last
year has continued into 2025 with the pipeline now extending well into 2026.
We are optimistic that our proteomics business has gone through a strong
inflection point in its development and that it can deliver substantial
increases and returns in the future.
Christopher Pearce
Executive Chairman
9 April 2025
STRATEGIC REPORT
Review of the Business
The principal activities of the Group involve protein biomarker research and
development. As a leader in applied proteomics, we use high sensitivity
proprietary techniques to detect and characterise differentially expressed
proteins in biological samples for diagnostic, prognostic and therapeutic
applications. In addition, we invented and developed the technology for
TMT(®) and TMTpro™, and manufacture these small, protein-reactive chemical
reagents which are sold for multiplex quantitative proteomics under exclusive
license by Thermo Fisher Scientific.
Proteome Sciences is a major provider of contract research services for the
identification, validation and application of protein biomarkers. Our clients
are predominantly pharmaceutical and biotechnology companies, but we also
perform services for other sectors including academic research. While we have
several well-established workflows that meet the needs of many customers, we
retain our science-led business focus wherever possible, developing new
analytical methods, new reagents and data analysis tools to provide greater
flexibility in the types of studies we can deliver. Our contract service
offering remains centred on mass spectrometry-based proteomics, and this is
becoming more widely implemented in drug development projects as the
pharmaceutical industry seeks to expand biological knowledge beyond genomics.
These services are fully aligned with the drug development process, can be
used in support of clinical trials and in vitro diagnostics, and include
proprietary bioinformatics capabilities.
Progress during 2024
Growing Our Services Business
Building for the future
During 2024 we have continued our long-term program of improving and
broadening our proteomics services. Following a detailed review in 2022 we
have taken a stepwise approach to improve and expand all aspects of our
workflows. In 2023 we completed the move to single-pot, solid-phase-enhanced
sample-preparation ("SP3") technology sample processing that enabled a 50%
increase in throughput for our standard methods. We have continued this
progress and now have adapted methods for working with smaller samples, that
further enhances the utility of unbiased biomarker discovery from small
samples such as tumour biopsies. We have also been evaluating new mass
spectrometry methods using DIA and combined this with further development of
multiplexing tags for DIA. The initial results for both standard and
multiplexed DIA are encouraging, and we are pushing forward these developments
into our Biomarker Services. The final step in our analytical pipeline is
statistical analysis of quantitative data from the mass spectrometry results.
We have always provided a high-quality data science service and combined this
with deep biological analysis of the identified protein changes to assist our
customers in understanding how the data support their studies. During 2024 we
have further developed our data science team bringing in skills for rapid
software development and enhanced data visualization. We are currently testing
a new data dashboard concept internally and aim to release this for customer
applications in 2025.
Status of the Tandem Mass Tag(®) Product Portfolio
This year we released the latest TMTpro™ 35plex set with our exclusive
licensee Thermo Fisher Scientific. Using the higher plexing capabilities
enables higher overall data quality across large sample sets, with less
missing data and high quantitative precision and accuracy. In a recently
completed study we saw an approximately 40% increase in the number of proteins
quantified in 150 human serum samples compared to similar studies using 18plex
TMTpro™. The market response has been positive amongst large TMTpro™
users, and we expect this to filter down to smaller research groups and
academic core laboratories in 2025.
During the year we also extended our program in multiplexed tags for DIA,
manufacturing a second generation 6plex set of tags. This gave improved
performance for multiplexed DIA applications and increased the numbers of
proteins identifiable. We also demonstrated excellent quantitative performance
with observed ratios being extremely close to expected values across a
biologically relevant dynamic range. A US provisional patent application has
been filed, adding to the patent covering first generation tags filed in 2023.
We are in discussions with several parties regarding licensing of the tags for
sales, marketing and distribution, following the model established for
TMT(®). We have also filed to register the trademarks 'DIA multipleX Tag' and
'DXT'.
Single Cell Proteomics
After prolonged development of the SCP platform, we secured our first
commercial contract in Q4 2024. This study analysed >2,000 individual cells
and we were able to identify different cell types within a complex
multicellular sample. A second project with this customer is under negotiation
with another SCP project for a different customer currently ongoing, and we
expect the number of projects to increase quickly during 2025. We have also
been working to extend the capacity and breadth of SCP using the recently
introduced nPOP sample preparation. Using our CellenONE system with nPOP
allows several thousand cells to be sorted in a single run. We are also
looking to use massively parallel precursor prioritisation to further enhance
the depth of proteome coverage and data completeness in such large studies.
Recently a research group at Northeastern University, Boston, USA has
published a scientific paper describing use of nPOP and prioritized
acquisition that measured >2,000 proteins in each of 1,000 cells within a
single day, substantially eclipsing the throughput of even the fastest
data-independent acquisition workflows.
Stroke biomarkers
We still await outcomes from the two clinical trials being run by our
licensees Randox and Galaxy CCRO, which we understand remain ongoing. The
Galaxy trial has experienced slower than expected recruitment rates, but the
initial phase has shown the lateral flow test to be easily deployable within
the Emergency Room and specialized Acute Stroke Unit. There are also different
kinetics of GSTP level changes during the first hour in hospital and we await
their analysis in conjunction with clinical information to assess the utility
of their FAST>ER test.
Patent Applications and Proprietary Rights
During the year 2024 we filed two new patents relating to our 1(st) and 2(nd)
generation DIA multiplexing tags. We also filed for protection of the
trademark DXT in relation to these tags. Four patents were granted and issued
relating to methods of TMT(®) labelling and biomarkers of Alzheimer's
disease, whilst 55 cases from 6 families mainly related to non-exploited
stroke biomarkers. One case relating to alternative mass tag structures no
longer required was abandoned.
Strategic evaluation
Our main focus in the first half of 2024 was to further embed new technology
offerings introduced in previous years and continue the innovation around
areas of increasing pharmaceutical industry interest. The main activities have
been:
· Streamlining and improving the single cell proteomics sample
preparation and data analysis workflows. We implemented the new nPOP cell
sorting method and will expand this for use with 35plex TMT in the coming
year. The new data dashboard is delivering a vast increase in data usability
and the underpinning statistical tools have been further refined to increase
overall data quality.
· Exploring new methods for analysis of blood proteomics using
enrichment methods introduced by different vendors. Indications are promising
for both human and veterinary sectors.
· Expanding our immunopeptidomics services by enhancing the data
analysis pipeline using robust sequence rescoring and introduction of major
histocompatibility complex II ("MHC II") specific pulldowns. This reflects the
rapid increase of awareness around immune system remodelling during most
diseases, and the challenges of chronic inflammation in ageing (inflammaging).
Financial Review
Results and Dividends
Key Performance Indicators ("KPI's")
● The directors consider that revenue, adjusted EBITDA, and
profit before/after tax are important in measuring Group performance. The
performance of the Group is set out in the Executive Chairman's Statement.
● The directors believe that the Group's rate of cash
expenditure and its effect on Group cash resources are important. Net cash
outflows from operating activities for 2024 were £0.83m (2023: net cash
outflows of £0.48m). The costs in 2024 were higher when compared to 2023 due
to the investment in our San Diego site, development of next generation tags
and the launch of SCP. We suffered from lower revenues in biomarker services
as compared to 2023. Cash at 31 December 2024 was £1.13m (31 December 2023:
£2.03m).
● In 2024 service revenues decreased
by 47% to £0.87m (2023: £1.63m). As a proportion of total group
revenue service revenues in 2024 were 18% compared to 32% in 2023.
Financial Performance
● Revenue for the year ended 31 December 2024 showed a 3% decrease
to £4.89m (2023: £5.03m). This is comprised of two revenue streams:
TMT(®) related revenue and Proteomic (Biomarker) Services. Sterling values
of our sales and royalties received for TMT(®) tags increased by 18% to
£4.01m (2023: £3.40m)
● Gross profit £0.67m (2023: £1.65m)
● Administrative expenses, including depreciation of £3.02m (2023: £
3.27m)
● EBITDA decreased to £(1.52)m (2023: £ (1.14)m)
● Adjusted EBITDA* loss of £1.48m (2023: loss £0.92m)
● The loss after tax was £3.41m (2023: loss after tax of £2.44m)
*Adjusted EBITDA (a non-GAAP Group specific measure (see Note 3) which is
considered to be a key performance indicator of the Group's financial
performance) decreased by £0.56m year on year mainly due to lower revenues
while costs have increased.
Taxation
Owing to the changing nature of our services business, with a stronger focus
on commercial activities, we have not fully assessed our available R&D tax
credit for 2024, and such amounts are only recognised when reasonably assured.
Costs and Available Cash
● The Group maintained a positive cash balance in 2024 and continues to
seek improved cash flows from commercial income streams. Due to flat revenues
and higher operating costs year on year, the Group had a negative cash flow in
the year. Administrative expenses in 2024 were £3.02m (2023: £3.27m)
● Staff costs for the year were £3.49m (2023: £3.35m) of which £0.04m
was a share based payment charge (2023: £0.22m)
● Property costs without charges on rent of £0.51m were higher than
previous years (2023: £0.44m) also including property costs for the lab in
San Diego
● Finance costs relate to interest due on loans from two major investors
in the Company and lease interest. Costs of £0.89m were higher than the
prior year (2023: £0.80m)
● Trade and other payables were £0.78m (2023: £0.63m)
● Trade and other receivables were £0.43m (2023: £0.96m)
● Cash at the year end was £1.13m (2023: £2.03m)
Principal Risks and Uncertainties
Commercialisation Activities
It is uncertain whether our range of contract proteomic services will generate
sufficient revenues for the Group ultimately to be successful in an
increasingly competitive commercial market which generally favours companies
with a broader technology platform than our own. Similarly, our increased
capacities and the opening of our US laboratory create a risk that we do not
generate sufficient orders to make our commercial activities profitable.
Management of Risk: The Group has sought to manage this risk by broadening its
proteomic services offering by increasing the coverage of unbiased discovery
experiments and broadening capabilities for analysis of very small samples
including single cells, investing in our own sales by dedicating more staff
time to direct business development activities in our principal commercial
territories and adopting conventional service-based metrics directed at speed,
cost and quality.
Adding new services bears the risk that competitors are already more advanced
and it will be difficult to find and retain new customers.
Management of Risk: We believe the technology we are developing for single
cell proteomics has a high demand in the market and hence we believe there is
sufficient room for many players to satisfy the demand. Moreover, Proteome
Sciences has a USP (Unique Selling Point) as we are the owner of TMT(®) which
gives us a number of advantages (including cost control) vis à vis
competitors.
Dependence on Key Personnel
The Group depends on its ability to retain a limited number of highly
qualified scientific, commercial and managerial personnel, the competition for
whom is strong. While the Group has entered into conventional employment
arrangements with key personnel and staff turnover is low, their retention
cannot be guaranteed as evidenced by two resignations during 2024.
Management of Risk: The Group has a policy of organising its work so that
projects are not dependent on any one individual, and we have strong
managerial oversight and support for our laboratory-based staff. Retention
is also sought through annual, role-based reviews of remuneration packages,
performance related bonus payments, and the opportunity for share option
grants.
Investment Limitations
Sales and royalties from TMT(®) have historically been key to revenue and
working capital for the group to invest in the business. We are still reliant
on TMT(®) sales and royalties for the majority of our revenues and working
capital to invest in growing the business remains limited.
Management of Risk: In addition to previous cost reduction and ongoing
containment measures which have significantly changed the cost profile of the
business over the last years, we also actively engage with our major creditors
to manage the Company's debt.
Competition and Technology
The international bioscience sector is subject to rapid and substantial
technological change. There can be no assurance that developments by others
will not render the Group's service offerings and research activities obsolete
or otherwise uncompetitive. Proteomics remains a growth area where
increasing demand from the pharmaceutical industry remains ahead of the growth
in service provider capacities.
Management of Risk: The Group employs highly experienced research scientists
and senior managerial staff who monitor developments in technology that might
affect the viability of its service business or research capability. This is
achieved through access to scientific publications, attendance at conferences
and collaboration with other organisations.
Licensing Arrangements
The Group intends to continue sub-licensing new discoveries and products to
third parties, but there can be no assurance that such licensing arrangements
will be successful.
Management of Risk: The Group manages this risk by a thorough assessment of
the scientific and commercial feasibility of proposed research projects which
is conducted by an experienced management team. Risk has also been reduced by
decreasing the overall number of research projects and re-distributing
available resources.
Patent Applications and Proprietary Rights
The Group seeks patent protection for identified protein biomarkers which may
be of diagnostic, prognostic or therapeutic value, for its chemical mass tags,
and for its other proprietary technologies. The successful commercialisation
of such biomarkers, chemical tags and proteomic workflows is likely to depend
on the establishment of such patent protection. However, there is no
assurance that the Group's pending applications will result in the grant of
patents, that the scope of protection offered by any patents will be as
intended, or whether any such patents will ultimately be upheld by a court of
competent jurisdiction as valid in the event of a legal challenge. If the
Group fails to obtain patents for its technology and is required to rely on
unpatented proprietary technology, no assurance can be given that the Group
can meaningfully protect its rights. All patents have a limited period of
validity and competing products may be sold by third parties on expiry in each
territory. Whilst the expiration of the earliest TMT(®) patent in 2022
resulted in a reduced royalty rate under the exclusive licence and
distribution agreement with Thermo Fisher Scientific, we do not expect further
royalty reductions in 2025 and beyond. We continually monitor the implications
of patent expiry and have not seen any generic isobaric tags enter the markets
so far.
Management of Risk: The Group retains limited but experienced patent
capability in house, supplemented by external advice, which has established
controls to avoid the release of patentable material before it has filed
patent applications. Maintenance of the existing patent portfolio is subject
to review ensuring that its ongoing cost is proportional to its perceived
value. We seek to prolong the value of our proprietary technologies by
patenting improved chemical tags and superior biomarker panels when we are
able to do so, and we monitor the impact of patent expiry by monitoring of
market share of licensed products such as TMT(®) and TMTpro™.
Section 172 statement
The Board recognises the importance of the Group's wider stakeholders when
performing their duties under Section 172(1) of the Companies Act and their
duties to act in the way they consider, in good faith, would be most likely to
promote the success of the company for the benefit of its members as a whole,
and in doing so have regard (amongst other matters) to:
(a) the likely consequences of any decision in the long term,
(b) the interests of the company's employees,
(c) the need to foster the company's business relationships with suppliers,
customers and others,
(d) the impact of the company's operations on the community and the
environment,
(e) the desirability of the company maintaining a reputation for high
standards of business conduct, and
(f) the need to act fairly as between members of the company.
The Board considers that all their decisions are taken with the long-term in
mind, understanding that these decisions need to regard the interests of the
company's employees, its relationships with suppliers, customers, the
communities and the environment in which it operates. It is the view of the
Board that these requirements are addressed in the Corporate Governance
Statement, which can be found on the company's website www.proteomics.com
(http://www.proteomics.com) .
For the purpose of this statement detailed descriptions of the decisions taken
are limited to those of strategic importance. The Board believes that two
decisions taken during the year fall into this category and were made with
full consideration of both internal and external stakeholders as follows:
Investment in developing new products and services.
The board took the decision in 2024 to invest in an internal research project
to develop a new 6-plex set of isotopic tags for multiplexed data-independent
acquisition (DIA) mass spectrometry. The board considers that development
and innovation in this market sector is important for long term success and
expects DIA tags to provide new revenue streams in 2025 and beyond.
Investment in new instruments
The Board took the decision to invest in additional new instrumentation due to
the increased demand for the Groups' services. The board considers this
investment in instruments and consequent additional capacities will be of
great benefit to both existing and potential customers.
By Order of the Board
Coveham House
Downside Bridge Road
Cobham
Surrey KT11 3EP
Victoria Birse
Company Secretary
9 April 2025
Consolidated income statement
For the year ended 31 December 2024
Note Year ended Year ended
31 December 2024 31 December 2023
£'000 £'000
Revenue
Licences, sales and services 4,887 5,028
Revenue - total 4,887 5,028
Cost of sales (4,217) (3,381)
Gross profit 670 1,647
Administrative expenses (3,023) (3,268)
Operating loss (2,353) (1,621)
Finance costs (895) (797)
Loss before taxation (3,247) (2,418)
Tax (charge)/credit (158) (25)
Loss for the year (3,406) (2,443)
Loss per share
Basic 3 (1.15p) (0.83p)
Diluted (1.15p) (0.83p)
Consolidated statement of comprehensive income
For the year ended 31 December 2024
Year ended Year ended
31 December 2024 31 December 2023
£'000 £'000
Loss for the year (3,406) (2,443)
Other comprehensive income for the year
Items that will or may be reclassified to profit or loss:
Exchange differences on translation of foreign operations (82) (41)
Re-measurement of Defined Benefit Pension Scheme (2) 43
Loss and total comprehensive income for the year (3,490) (2,441)
Attributable to owners of parent (3,490) (2,441)
Consolidated balance sheet
As at 31 December 2024
2024 2023
£'000 £'000
Non-current assets
Goodwill 4,218 4,218
Property, plant and equipment 609 551
Right-of-use asset 1,790 2,525
6,617 7,294
Current assets
Inventories 732 837
Trade and other receivables 433 955
Contract assets 296 345
Cash and cash equivalents 1,128 2,027
2,590 4,164
Total assets 9,207 11,458
Current liabilities
Trade and other payables (780) (629)
Contract liabilities - (1)
Borrowings (12,631) (11,235)
Lease liabilities (602) (609)
(14,012) (12,474)
Net current liabilities (11,422) (8,310)
Non-current liabilities
Borrowings (250) -
Lease liabilities (1,039) (1,631)
Pension provisions (422) (419)
Total non-current liabilities (1,711) (2,050)
Total liabilities (15,724) (14,524)
Net liabilities (6,516) (3,066)
Equity
Share capital 2,952 2,952
Share premium 51,466 51,466
Share-based payment reserve 4,753 4,713
Merger reserve 10,755 10,755
Translation reserve and other reserve (93) (10)
Retained loss (76,349) (72,942)
Total deficit (6,516) (3,066)
Consolidated statement of changes in equity
For the year ended 31 December 2024
Share Share Equity attributable to owners of the parent
Share premium based payment Total
capital account reserve Translation Merger Retained (deficit)
reserve reserve loss
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2023 2,952 51,466 4,495 31 10,755 (70,542) (843) (843)
- - - - - (2,443) (2,443)
Loss for the year
(2,443)
Exchange differences on translation of foreign operations - - - (41) - - (41)
(41)
Re-measurement of Defined Benefit Pension Schemes - - - - - 43 43 43
Loss and total comprehensive expense for the year - - - (41) (2,400)
(2,441)
(2,441)
Credit to equity for share-based payment - - 218 - - - 218
218
At 31 December 2023 2,952 51,466 4,713 (10) 10,755 (72,942) (3,066)
(3,066)
Consolidated statement of changes in equity
For the year ended 31 December 2024
Share Share Equity attributable to owners of the parent
Share premium based payment Total
capital account reserve Translation Merger Retained (deficit)
reserve reserve loss
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 2,952 51,466 4,713 (10) 10,755 (72,942) (3,066) (3,066)
Loss for the year - - - - - (3,406) (3,406) (3,406)
Exchange differences on translation of foreign operations - - - (82) - - (82)
(82)
Re-measurement of Defined Benefit Pension Schemes - - - - - (2) (2) (2)
Loss and total comprehensive income for the year - - - (82) - (3,408)
(3,490)
(3,490)
Credit to equity for share-based payment - - 40 - - - 40
40
At 31 December 2024 2,952 51,466 4,753 (93) 10,755 (76,349) (6,516) (6,516)
Consolidated cash flow statement
For the year ended 31 December 2024
Group Group
Year ended Year ended
31 December 31 December
2024 2023
£'000 £'000
(Loss) after tax (3,406) (2,443)
Adjustments for:
Finance costs 895 797
Depreciation of property, plant and equipment 150 123
Right-of-use asset depreciation 687 361
Tax charge 158 25
Share-based payment expense 40 218
Operating cash flows before movements in Working capital
(1,476) (919)
Decrease in inventories 105 63
Decrease in receivables 569 704
Decrease/(increase) in payables 150 (298)
Increase/(decrease) in provisions 4 (15)
Foreign exchange 76 9
Cash (used in) operations (572) (456)
Tax (paid) (254) (25)
Net (outflow) from operating activities (826) (481)
Cash flows from investing activities
Lease upfront payment - (187)
Purchases of property, plant and equipment (224) (237)
Loans advanced to subsidiary undertakings - -
Net cash (outflow)/inflow from investing activities (224) (424)
Financing activities
Lease payments (599) (238)
Issue of new loans 750 -
Repayment of loan - (824)
Net cash in/(out) from financing activities 151 (1,062)
Net (decrease) in cash and cash equivalents (899) (1,967)
Cash and cash equivalents at beginning of year 2,027 3,994
Effect of foreign exchange rate changes - -
Cash and cash equivalents at end of year 1,128 2,027
Notes to the Financial Information
1. Basis of Preparation
The financial information set out in this document does not constitute the
Company's statutory accounts for the years ended 31 December 2024 or 2023
within the meaning of Section 434 of the Companies Act 2006. Statutory
accounts for the year ended 31 December 2024, which were approved by the
directors on 9 April 2025, have been reported on by the Independent
Auditors. The Independent Auditor's reports on the Annual Report and
Financial Statements for years ended 31 December 2024 and 2023 were
unqualified and did not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
Statutory accounts for the year ended 31 December 2023 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31
December 2024 will be delivered to the Registrar of Companies in due
course and will be posted to shareholders shortly, and thereafter will be
available from the Company's registered office at Coveham House, Downside
Bridge Road, Cobham, Surrey KT11 3EP and from the Company's website
http://www.proteomics.com/investors (http://www.proteomics.com/investors) .
The financial information set out in these results has been prepared using the
recognition and measurement principles of UK adopted international accounting
standards in conformity with the requirements of the Companies Act 2006.
The accounting policies adopted in these results have been consistently
applied to all the years presented and are consistent with the policies used
in the preparation of the financial statements for the year ended 31 December
2023, except for those that relate to new standards and interpretations
effective for the first time for periods beginning on (or after) 1 January
2024. Other new standards, amendments and interpretations to existing
standards, which have been adopted by the Group have not been listed, since
they have no material impact on the financial statements.
2. Liquidity and Going Concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Executive
Chairman's Statement and Strategic Report. The financial position of the
Group, its cash flows, liquidity position and borrowing facilities are
described in the notes to the financial statements, in particular in the
consolidated cash flow statement.
Notwithstanding net liabilities of £6,516k these financial statements have
been prepared on the going concern basis which remains reliant on the Group
achieving an adequate level of sales in order to maintain sufficient working
capital to support its activities. The directors have reviewed the Company's
and the Group's going concern position, taking account of current business
activities, budgeted performance and the factors likely to affect its future
development, as set out in the Annual report, and including the Group's
objectives, policies and processes for managing its working capital, its
financial risk management objectives and its exposure to credit and liquidity
risks.
In particular, the directors have considered the challenges on international
business, and the general inflationary pressure on costs. The Company observed
increased demand for TMT(®) but lower demand for its services during the
second half of 2024 but has seen first signs of a potential recovery since the
end of 2024.
Due to the continued backdrop from the macro environment on international
business, and the general inflationary pressure on costs, Group revenues for
the year ended 31 December 2024 decreased by 3% to £4.89m (2023: £5.03m).
Proteomic (biomarker) services decreased 47% to £0.87m (2023: £1.63m). Sales
and royalties attributable to TMT(®) and TMTpro™ reagents were £4.01m
(2023: £3.40m).
Total costs, excluding finance costs, rose to £7.24m (2023: £6.65m) and this
resulted in an operating loss of £2.35m (2023: operating loss of £1.62m) and
a net loss of £3.41m (2023: a loss of £2.44m). Cash reserves at the year end
were at £1.13m (2023: £2.03m).
The Group is also dependent on the loan facility provided by the Chairman of
the Group, which under the terms of the facility, is repayable on demand.
Further details of this facility are set out in note 18(b) to the financial
statements.
The directors have received a legally binding written confirmation from the
Chairman that he has no intention of seeking its repayment, with the facility
continuing to be made available to the Group, on the existing terms, for at
least 12 months from the date of approval of these financial statements or
until at least the 30 April 2026.
On 20 December 2024 Proteome Sciences plc secured a loan facility of £0.50m
from Vulpes Investment Management ("VIM") Testudo Fund. Interest accrues at
10% per annum and is repayable alongside the principal loan. The Company had
drawn down £0.25m at 31 December 2024. The directors have received a legally
binding written confirmation from VIM that they will not seek repayment for at
least 12 months from the date of approval of these financial statements or
until at least 30 April 2026.
Following a detailed review of forecasts, budgets, sales order book and with
the knowledge of how the Group has traded in the second year post the global
pandemic, the directors have a reasonable expectation the Group as a whole,
has adequate financial and other resources to continue in operational
existence for the period of at least twelve months post approval of these
financial statements. For this reason, the Directors continue to adopt the
going concern basis in preparing the Financial Statements.
3. Profit per Share from Continuing Operations
The calculations of basic and diluted loss per ordinary share are based on the
following profits and numbers of shares.
2024 2023
£'000 £'000
Loss for the financial year (3,406) (2,443)
2024 2023
Number of Number of
shares
shares
Weighted average number of ordinary shares for the purposes of calculating
basic and diluted earnings per share:
Weighted average number of ordinary shares and outstanding options for the
purposes of calculating diluted earnings per share: 295,182,056 295,182,056
307,323,987 311,222,086
The weighted average number of ordinary shares outstanding was calculated
applying the treasury stock method to an amount of 17.0m share options which
were in the money at the 31 December 2024. An average share price for 2024 of
3.52p per share added by the outstanding service amounts for these options and
resulting in a number of shares of 12,141,931 added to the existing issued
share stock for the purpose to calculate the diluted EPS. A number of 6.6m
shares were not considered in the calculation of the weighted number of
outstanding shares used for the diluted EPS calculation as these options were
not dilutive at the 31 December 2024. Since the Group is recording a loss for
2024 no dilution has been recognised in calculation of the loss per share for
2024.
4. Cautionary Statement on Forward-looking Statements
Proteome Sciences has made forward-looking statements in this preliminary
announcement. The Group considers any statements that are not historical facts
as "forward-looking statements". They relate to events and trends that are
subject to risk and uncertainty that may cause actual results and the
financial performance of the Group to differ materially from those contained
in any forward-looking statement. These statements are made in good faith
based on information available to them and such statements should be treated
with caution due to the inherent uncertainties, including both economic and
business risk factors, underlying any such forward-looking information.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR ILMRTMTBMBRARecent news on Proteome Sciences
See all newsREG - Proteome Sciences - Final Results
AnnouncementREG - Proteome Sciences - Notice of Results and Investor Presentation
AnnouncementREG - Proteome Sciences - Contract Win
AnnouncementREG - Proteome Sciences - Loan Facility, Trading Update & Directorate Change
AnnouncementREG - Proteome Sciences - Interim Results and Directorate Change
Announcement