REG - Proteome Sciences - Interim Results and Directorate Change
13/09/2024 07:00
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RNS Number : 0372E Proteome Sciences PLC 13 September 2024
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation.
13 September 2024
Proteome Sciences plc
("Proteome Sciences" or the "Company")
Interim results for the six months ended 30 June 2024
and Directorate Change
Proteome Sciences announces its unaudited interim results for the six months
ended 30 June 2024 ("H1 2024").
Financial highlights:
· Total revenues £2.22m (H1 2023: £3.21m)
· TMT(®) reagent sales and royalties £1.85m (H1 2023: £2.20m)
· Proteomics services revenues £0.37m (H1 2023: £1.01m)
· Gross profit £0.20m (H1 2023: £1.77m)
· Cost of sale and administrative costs £3.92m (H1 2023: £3.37m)
· Adjusted EBITDA** (Loss £1.24m) (H1 2023: £0.27m)
Commenting on these results, Dr. Mariola Soehngen, Chief Executive Officer of
Proteome Sciences, said:
"During H1 2024, the TMT business was affected by the challenging background
to the biotech market with reduced R&D budgets and postponement of
projects which had continued from 2023. TMT revenues were down 16% compared to
the same period last year. We believe that customers mainly held off placing
orders while waiting for the launch and availability of the new TMTpro 35plex
tags post the ASMS (American Society for Mass Spectrometry) meeting in June.
This has resulted in a significant increase in orders during Q3 2024 and it is
expected to continue during Q4 2024. The Company expects that the improved
orders should lead to higher sales for the full year results and a return to
long term growth.
Following the recent development and excellent performance of our innovative
plexDIA tags, licensing discussions have started to select a major
distribution partner. This will generate new sources of revenue for our
reagents business including tag sales, royalties and additional proteomics
services. The Company expects to make further announcements in due course.
Interest in our proteomic services is healthy with a good order book but the
translation into revenue was delayed and reduced in the first half of the
year. In April 2024, the Company secured a contract with a US
biopharmaceutical company using Proteome Sciences' mass spectrometry services
for the analysis of samples for an on-going clinical trial. This project is
utilising the Good Clinical Laboratory Practice ("GCLP") accreditation
obtained by Proteome Sciences specifically for this type of project. The
contract value is in excess of £500,000.
In addition, the US lab in San Diego, has delivered its first projects with
good results. It uses the latest generation Orbitrap Ascend Tribrid mass
spectrometry and automated sample preparation platforms that will extend the
range of services offered to customers. The challenging economic climate has
required that we currently hold back the scale of our US operation pending
receipt of several more significant projects currently under discussion.
We believe that the biotech downturn last year bottomed out in the first
half of 2024 following the significant increases in orders that we have
received for TMT and proteomics services in Q2 and Q3 and that the slowdown
in the market is now behind us.
The Company considers that the commercialisation of the new plexDIA tags, the
addition of regular and multiplexed DIA services together with the return to
growth in TMT and from our traditional service business will underpin the
company's recovery and return the business back to growth across its
proteomics activities."
**Adjusted EBITDA (a non-GAAP company specific measure which is considered to
be a key performance indicator of the Group's financial performance).
Directorate Change:
The Company announces that Dr Mariola Soehngen has notified the Company of her
intention to step down as Chief Executive Officer ("CEO") and as a director of
the Company after four years of service at the end of January 2025. The
process to appoint a successor has been initiated.
For further information:
Proteome Sciences plc
Dr Mariola Soehngen, Chief Executive Officer Tel: +44 (0)20 7043 2116
Dr Ian Pike, Chief Scientific Officer
Richard Dennis, Chief Commercial Officer
Abdelghani Omari, Chief Financial Officer
Allenby Capital Limited (AIM 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.
The Company has its headquarters in Cobham, UK, with laboratory facilities in
Frankfurt, Germany and San Diego, US.
Chief Executive Officer's Report
Services
Revenues from the proteomics services business decreased 63% in the first half
of 2024 to £0.37m (H1 2023: £1.01m). As reported in our 2023 Annual
Report, this reflects the significant slowdown in orders placed with the
company in H2 2023 which resulted in a smaller order book and received samples
being carried over to the start of 2024.
In April 2024 we announced a substantial GCLP based contract with a US
biopharma company. We are now regularly receiving clinical samples from
their trial centres with service revenue to be recorded in both 2024 and
2025. This order made a significant impact to the orders received in H1
2024, overall we received 75% more orders and 2.8x greater value compared to
the same period in 2023. We are working on several other assay development
contracts with the same biopharma company which are anticipated to lead to
further contracts for GCLP analysis early in 2025.
The substantial increase in both the number of orders and their overall value
gives management confidence that the slowdown experienced in H2 2023 and H1
2024 has bottomed out and the business is on track to return to growth.
TMT(®)
First half-year revenue from the TMT license with Thermo Scientific declined
to £1.85m (2023: £2.20m). We believe this largely resulted from customers
holding off their orders for TMT tags in anticipation of the release of the
new generation TMT 32plex and TMT pro 35plex tags at the ASMS meeting in June.
After very positive feedback and the tags available thereafter, there has
been a strong resurgence in TMT orders and revenues in the second half of the
year that should result in full year expectations for revenues to be
considerably higher than in 2023. We continuously monitor our stock levels of
all TMT(®) and TMTpro™ reagents to ensure we can meet forecast demands for
the foreseeable future.
plexDIA
Strong progress has been made with the development of an innovative range of
new tags in multiplexed DIA analysis (plexDIA). The tags have excellent
labelling efficiency and overall performance importantly matching peptide and
protein identification rates very closely to single DIA and TMTpro™
experiments. We have made an initial 6plex set of tags, doubling the capacity
over other plexDIA tags, and we plan to extend this with at least 20 variants
from the same structure. These will be commercialised with two different
revenue streams, one by outlicensing the plexDIA tags with a major
distribution partner and the other by way of services revenue from our
services business. This provides a strategic market opportunity and licensing
discussions have been initiated with patents filed recently.
Outlook
Over the last two years we invested substantially to expand our business by
establishing the facility in San Diego, developing new ranges of TMT(®), plex
DIA tags and Single Cell Proteomics (SCP) to address the future growing global
demand for proteomics applications.
Despite the lower service revenues in H1 2024, we have experienced increased
customer engagement and orders for proteomics services in Q2 and Q3 2024 and
we now believe that the slowdown in the market is behind us.
For our tag business we expect the recent introduction of the TMTpro™ 35plex
tags to generate strong revenues in the coming years. Licensing discussions
have been initiated for our plexDIA tags from which new and additional revenue
streams will be generated.
In summary, with improved background to trading in the second half of the
year, we expect the investments that we have made combined with the new
products and services we have introduced should return the business back to
growth across its proteomics activities.
After 4 years as CEO this September I wanted to announce that I intend to
leave Proteome Sciences at the end of January 2025 and consequently the
process to appoint a successor has been initiated. I have much enjoyed
overseeing the development of the business over that time and wish it every
success in the future.
Dr. Mariola Soehngen
Chief Executive Officer
12 September 2024
Chief Financial Officer's Report
Revenues in the first half of 2024 were 31% lower at £2.22m compared to the equivalent period in 2023 (H1 2023: £3.21m), TMT(®) and TMTpro™ sales were 7% below prior year and amounted to £1.35m (H1 2023: £1.45m) and TMT(®) royalties were £0.50m in H1 2024 compared to £0.75m in H1 2023. Proteomics service revenues decreased 63% to £0.37m (H1 2023: £1.01m).
Cost of sales and administrative expenses increased by 16% to £3.92m (H1
2023: £3.37m). Major cost drivers included spend on the laboratory in the
U.S. Financing costs for the first half increased to £0.44m in comparison
with £0.38m in the previous period due to higher cost of debt.
( )
Adjusted EBITDA** decreased to a loss of £1.24m (H1 2023: profit of £0.27m),
which is primarily attributable to lower revenues and higher costs.
The cash flow from operating activities was (£0.45m) in H1 2024. As at 30
June 2024 the Group had cash resources of £1.21m (31 December 2023: £2.03m).
Six months Six months
ended ended
30 June 30 June
2024 2023
(unaudited) (unaudited)
£'000 £'000
Revenue 2,217 3,210
Gross Profit 205 1,767
Administrative Expenses * (1,911) (1,930)
Operating loss (1,706) (163)
Depreciation 430 289
EBITDA (1,276) 126
Non-cash item: share based payment expenses 39 143
Adjusted EBITDA ** (1,237) 269
* Administrative expenses include depreciation
**Adjusted EBITDA (a non-GAAP company specific measure which is considered to
be a key performance indicator of the Group's financial performance).
Abdelghani Omari
Chief Financial Officer
12 September 2024
Consolidated income statement
For the six months ended 30 June 2024
Six months Six months
ended ended
30 June 30 June
2024 2023
(unaudited) (unaudited)
Note £'000 £'000
Continuing operations
Revenue
Licences, sales & services 2,217 3,210
Cost of sales (2,012) (1,443)
Gross profit 205 1,767
Administrative expenses (1,911) (1,930)
Operating loss (1,706) (163)
Finance costs (442) (384)
Loss before taxation (2,148) (547)
Tax (65) (31)
Loss for the period (2,213) (578)
Loss per share 2
Basic (0.75p) (0.20p)
Diluted (0.75p) (0.20p)
Consolidated statement of comprehensive income
For the six months ended 30 June 2024
Six months Six months
ended ended
30 June 30 June
2024 2023
(unaudited) (unaudited)
£'000 £'000
Loss for the period (2,213) (578)
Other comprehensive income for the period
Exchange differences on translation of foreign operations (26) (103)
Loss and total comprehensive expense for the period (2,239) (681)
Consolidated balance sheet
As at 30 June 2024
30 June 31 December
2024 2023
(unaudited) (audited)
£'000 £'000
Non-current assets
Goodwill 4,218 4,218
Property, plant and equipment 492 551
Right-of-use asset 2,137 2,525
6,847 7,294
Current assets
Inventories 772 837
Trade and other receivables 380 955
Contract assets 247 345
Cash and cash equivalents 1,208 2,027
2,607 4,164
Total assets 9,454 11,458
Current liabilities
Trade and other payables (675) (629)
Contract liabilities - (1)
Borrowings (11,678) (11,235)
Lease Liabilities (870) (609)
(13,223) (12,474)
Net current liabilities (10,616) (8,310)
Non-current liabilities
Lease liabilities (1,073) (1,631)
Pension Provisions (424) (419)
Total non-current liabilities (1,497) (2,050)
Total liabilities (14,718) (14,524)
Net liabilities (5,266) (3,066)
Equity
Share capital 2,952 2,952
Share premium account 51,466 51,466
Share-based payment reserve 4,753 4,713
Merger reserve 10,755 10,755
Translation and others reserve (37) (10)
Retained loss (75,155) (72,942)
Total shareholders deficit (5,266) (3,066)
Consolidated cash flow statement
For the six months to 30 June 2024
Six months Six months
ended ended
30 June 30 June
2024 2023
(unaudited) (unaudited)
£'000 £'000
Loss after tax (2,213) (578)
Adjustments for:
Net finance costs 442 384
Depreciation of property, plant and equipment and right of use assets 430 288
Tax charge
65 31
Share-based payment expense 39 143
Operating cash flows before movements in working capital (1,237) 268
Decrease/(Increase) in inventories 64 (11)
Decrease in receivables 675 879
Decrease/(increase) in payables 44 (188)
Increase in provisions 5 3
Cash (outflow)/inflow from operations (449) 951
Tax paid (65) (31)
Net cash (outflow)/inflow from operating activities (514) 920
Cash flows from investing activities
Purchases of property, plant and equipment (9) (27)
Net cash outflow from investing activities (9) (27)
Financing activities
Lease payments (297) (173)
Loan repayment - (824)
Net cash outflow from financing activities (297) (997)
Net (Decrease) in cash and cash equivalents (820) (104)
Cash and cash equivalents at beginning of period 2,027 3,994
Effect of foreign exchange rate changes 1 (103)
Cash and cash equivalents at end of period 1,208 3,787
Notes
For the six months to 30 June 2024
1 Basis of preparation and accounting policies
These interim consolidated financial statements have been
prepared using accounting policies based on UK adopted International
Accounting Standards and Interpretations in conformity with the requirements
of the Companies Act 2006. They do not include all disclosures that would
otherwise be required in a complete set of financial statements and should be
read in conjunction with the 31 December 2023 Annual Report. The financial
information for the half years ended 30 June 2023 and 30 June 2024 does not
constitute statutory accounts within the meaning of Section 434 (3) of the
Companies Act 2006 and both periods are unaudited.
The annual financial statements of Proteome Sciences plc
('the Group') are prepared in accordance with UK adopted International
Accounting Standards and Interpretations in conformity with the requirements
of the Companies Act 2006. The comparative financial information included
within this report does not constitute the full statutory Annual Report for
that period. The statutory Annual Report and Financial Statements for 2023
have been filed with the Registrar of Companies. The Independent Auditors'
Report on the Annual Report and Financial Statements for the year ended 31
December 2023 was unqualified.
The directors have concluded that the Group has adequate resources to continue
operational existence for the foreseeable future.
Proteome Sciences plc has applied the same accounting
policies and methods of computation in its interim consolidated financial
statements as in its 2023 annual financial statements.
There have been no new standards adopted since the presentation of the
financial statements for 2023.
The Board of Directors approved this interim report on 12 September 2024.
2. Loss per share from continuing operations
Six months Six months
ended ended
30 June 30 June
2024 2023
(unaudited) (unaudited)
Loss per share
Loss for the purpose of basic profit/loss per share being net profit/loss
attributable to equity holders of the parent (£'000)
(2,213) (578)
Number of shares
Weighted average number of ordinary shares for the purpose of basic loss per 295,182,056 295,182,056
share
Weighted average number of ordinary shares for the purpose of diluted loss per 308,629,335 309,593,135
share
3. Cautionary statement
This document contains certain forward-looking statements
relating to Proteome Sciences plc ('the Group'). 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 by the directors 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.
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