REG - Proteome Sciences - Interim Results
04/08/2022 07:15
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RNS Number : 8551U Proteome Sciences PLC 04 August 2022
Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain
4 August 2022
Proteome Sciences plc
("Proteome Sciences" or the "Company")
Interim results for the six months ended 30 June 2022
Proteome Sciences announces its unaudited interim results for the six months
ended 30 June 2022.
Financial highlights:
· Proteomics services revenues £0.85m (H1 2021: £0.68m)
· TMT(®) reagent sales and royalties £2.39m (H1 2021: £1.29m)
· Total revenues £3.24m (H1 2021: £1.97m)
· Gross profit £1.80m (H1 2021: £1.16m)
· Costs £2.98m (H1 2021: £2.23m)
· Profit before tax £0.07m (H1 2021: loss before tax of £0.41m)
· Adjusted EBITDA** £0.64m (H1 2021: loss of £0.11m)
Commenting on these results, Dr. Mariola Soehngen, Chief Executive Officer of
Proteome Sciences, said:
"We have seen further positive momentum in sales of our services and TMT(®)
reagents during the first half of 2022 as we continue to implement our
strategy of organic growth.
TMT(®) sales were £1.45m in H1 2022 vs £0.67m in H1 2021, an increase of
116%. Royalties increased from £0.61m to £0.94m (54%).
Our revenues from TMT(®) and TMTpro™ reagents remain the most significant
source of income and are close to double the same period last year as the
research world globally starts to re-engage fully after the COVID pandemic.
Whilst we expect the rate of growth to slow marginally in the second half, we
expect a substantial improvement for the full year.
The market response to TMTpro™ 18plex reagents has been very positive as new
automation platforms enabling higher throughput labelling have been introduced
to the market. We still see challenges from label-free methods and continue to
look to further extend the value of TMT™ reagents across newly emerging
sectors such as single cell and low content proteomics, as well as leveraging
our chemical expertise in the tagging space to other opportunities.
Our service business started 2022 with a strong order book and large bank of
samples, allowing us to be at near full capacity since the start of the year.
We report another strong first half with revenues up 25% over the same period
in 2021, building on the growth posted in previous years. Revenue from key
longer term projects begun in H1 will be recognised in the second half of the
year. We have seen a continued high volume of client orders through this
period and remain confident that full year service revenue will show continued
growth over 2021.
During this period we have also been working on the introduction of Single
Cell Proteomics (SCP) as a new service, which will be known as SysQuant® SCP,
and evaluating new classes of reagents for mass spectrometry. To this end we
have added the cellenONE platform in July 2022 which enables us to scale up
the SysQuant® SCP service as we grow the market. Our demonstrated expertise
in TMT(®) reagents and services clearly differentiates us from other players
in the delivery of this complex SysQuant® SCP service. Further investments
in our resources i.e. staff and instruments have been necessary to maintain
the high level of operational and scientific support our customers receive.
Conferences and trade shows have restarted in a new combination of both
physical and virtual attendance. We have an intensive programme of
customer engagement largely centred around these events. In early Q2 we
launched a new corporate image largely based on our new web site appearance."
**Adjusted EBITDA (a non-GAAP company specific measure which is considered to
be a key performance indicator of the Group's financial performance).
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
Allenby Capital Limited (AIM Nominated Adviser & Broker)
John Depasquale / Jeremy Porter (Corporate Finance) Tel: +44 (0) 20 3328 5656
Tony Quirke (Sales)
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.
Chief Executive Officer's Report
Services
Recognised revenues from the proteomics services business increased 25% in the
first half to £0.85m (2021: £0.68m) reflecting the strong order book and
banked samples we carried forward from 2021. We invoiced our first project
that involved data generated from the Meso Scale Discovery platform that we
acquired last year.
In H1 2022, we booked new orders worth over £1.21m, representing a 14%
increase over H1 2021 (£1.06m) with a split between US (64%) and European
(36%) customers. We also maintained a strong level of repeat orders from
existing customers, which accounted for 45% of the total by value, as we
become established as preferred suppliers.
Revenue prospects for H2 look strong as we continue to have a healthy order
book and pipeline of projects to deliver by the year end.
As we moved into 2022 global travel has resumed, making it possible again to
have face to face meetings with our clients and prospects. We continue to use
a mixture of videoconferencing and presentations and attend (both in person
and virtually) trade shows to broaden further our outreach and customer
base. We use these outreach opportunities to maintain contact with our
current customers, establish new accounts and look for new business
opportunities in markets that we plan to enter in the coming months, for
example single cell proteomics.
TMT(®)
Revenues from sales of TMT(®) and TMTpro™ reagents and royalties were
£2.39m (2021: £1.29m) driven by significant increases in global research and
development activities as we begin to live with COVID. The launch of TMTpro™
18plex reagents and new formulations through our Licensee Thermo Scientific
have been very well received in the market and we expect strong sales to
continue through the rest of the year, although growth rates are expected to
slow in the fourth quarter. We have ample stocks of all reagents to meet
demand over the next 18 - 24 months and will be making a new batch of
TMTpro™ during the second half of this year, ensuring supplies beyond 36
months.
Historically, many groups have held back from using isobaric tagging due to
perceived challenges of sample preparation. Whilst these concerns are not well
founded, the recent introduction of automated sample preparation systems from
Preomics, Thermo Scientific and Cellenion are supporting greater uptake of
TMT(®) and particularly TMTpro™. We expect this trend will continue as
users start to see the benefits of high precision in biomarker discovery
experiments, compared with label free methods.
The strong response to 18plex TMTpro™ has been accompanied with market
demand for even higher plexing rates and we have initiated research into new
tag designs that will potentially address this demand, in the longer term. Our
TMTpro™ reagents are covered by patents in Europe, the USA and other major
territories until the mid-2030's and we remain active alongside our licensee
Thermo Scientific in protecting our markets as we also look to generate new
intellectual property.
Outlook
Revenue for the H2 looks strong as we continue to have a healthy order book
for our services backed up by a pipeline of projects for delivery in the next
period together with the introduction of a new SysQuant® SCP service. We
expect strong sales of TMTpro™ 18plex reagents in the coming months fuelled
by the introduction of various automation systems with perhaps a reduction in
the rate of growth in Q4 2022 as we continue to develop new reagents for
multiplexed mass spectrometry.
We remain confident that full year revenues from our services and TMT(® )
will continue to show good growth over 2021.
Dr. Mariola Soehngen
Chief Executive Officer
4 August 2022
Finance Director's Report
Revenues in the first half of 2022 were 64% higher at £3.24m compared to the equivalent period in 2021 (£1.97m), TMT(®) and TMTpro™ sales increased to £1.45m (30 June 2021: £0.67m). Proteomics service sales increased to £0.85m (30 June 2021: £0.68m). We expect high demand for the service business extending into the H2 half of 2022.
Costs of sales and administrative expenses increased by 33% to £2.98m (30
June 2021: £2.23m). This was as a result of investment in instruments and
increased orders resulting in additional personnel and material costs. So far
very prominent cost drivers like electricity costs remained largely stable but
we expect price increases in the upcoming 6 months in line with almost all our
material costs. Financing costs for the first half increased to £0.19m in
comparison with £0.14m in the previous period due to increases of interest
rates by the Bank of England.
( )
The profit before taxation amounted to £0.07m (30 June 2021: a loss of
£0.41m), which represents a significant positive increase by almost £0.50m.
Similarly EBITDA increased to £0.53m (2021: loss £0.18m) and adjusted
EBITDA** increased to £0.64m (2021: loss £0.11m). This is primarily
attributable to increased sales and royalties of TMT(®) and TMTpro™
reagents, which we anticipate remaining at a high level for the rest of the
year. As at 30 June 2022 the Group had cash resources of £3.20m (30 June
2021: £2.14m).
Six months Six months
ended ended
30 June 30 June
2022 2021
(unaudited) (unaudited)
£'000 £'000
Continuing operations
Revenue 3,243 1,969
Gross Profit 1,802 1,158
Administrative Expenses * (1,535) (1,422)
Operating Profit 267 (264)
Depreciation 259 78
EBITDA 526 (186)
Non-cash item: share based payment expenses 118 75
Adjusted EBITDA ** 644 (111)
* 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).
Stefan Fuhrmann
Finance Director
4 August 2022
Consolidated income statement
For the six months ended 30 June 2022
Six months Six months
ended ended
30 June 30 June
2022 2021
(unaudited) (unaudited)
Note £'000 £'000
Continuing operations
Revenue
Licences, sales & services 3,243 1,969
Cost of sales (1,441) (811)
Gross profit 1,802 1,158
Administrative expenses (1,535) (1,422)
Operating profit / loss 267 (264)
Finance costs (192) (144)
Profit / loss before taxation 75 (408)
Tax (12) (17)
Profit / loss for the period 63 (425)
Profit / loss per share 2
Basic 0.02p (0.14p)
Diluted 0.02p (0,14p)
Consolidated statement of comprehensive income
For the six months ended 30 June 2022
Six months Six months
ended ended
30 June 30 June
2022 2021
(unaudited) (unaudited)
£'000 £'000
Profit/(loss) for the period 63 (425)
Other comprehensive income for the period
Exchange differences on translation of foreign operations 50 15
113 (410)
Total comprehensive Income/(expense) for the period
Consolidated balance sheet
As at 30 June 2022
30 June 31 December
2022 2021
(unaudited) (audited)
£'000 £'000
Non-current assets
Goodwill 4,218 4,218
Property, plant and equipment 261 219
Right-of-use asset 834 1,050
5,313 5,487
Current assets
Inventories 1,038 1,088
Trade and other receivables 864 604
Contract assets 552 479
Cash and cash equivalents 3,199 2,387
5,653 4,558
Total assets 10,966 10,045
Current liabilities
Trade and other payables (626) (599)
Contract liabilities (676) (35)
Borrowings (10,997) (10,825)
Lease Liabilities (206) (260)
(12,505) (11,719)
Net current liabilities (6,852) (7,161)
Non-current liabilities
Lease liabilities (479) (602)
Pension Provisions (526) (499)
Total non-current liabilities (1,005) (1,101)
Total liabilities (13,510) (12,820)
Net liabilities (2,544) (2,775)
Equity
Share capital 2,952 2,952
Share premium account 51,466 51,466
Share-based payment reserve 4,311 4,193
Merger reserve 10,755 10,755
Translation and others reserve (78) (128)
Retained loss (71,950) (72,013)
Total shareholders deficit (2,544) (2,775)
Consolidated cash flow statement
For the six months to 30 June 2022
Six months Six months
ended ended
30 June 30 June
2022 2021
(unaudited) (unaudited)
£'000 £'000
Profit after tax 63 (425)
Adjustments for:
Net finance costs 192 144
Depreciation of property, plant and equipment and right of use assets 259 78
Tax charge /(credit)
12 17
Share-based payment expense 118 75
Operating cash outflows before movements in working capital 644 (111)
Decrease/(increase) in inventories 50 (31)
(Increase)/decrease in receivables (333) 266
Increase/(decrease in payables 668 (120)
(Decrease)/increase in provisions 27 (5)
Cash generated from / (used in) operations 1,056 (1)
Tax paid (12) (17)
Net cash Inflow/(outflow from operating activities 1,044 (18)
Cash flows from investing activities
Purchases of property, plant and equipment (84) (8)
Net cash outflow from investing activities (84) (8)
Financing activities
Lease payments (198) (83)
Net cash outflow from financing activities (198) (83)
Net Increase/(decrease) in cash and cash equivalents 762 (109)
Cash and cash equivalents at beginning of period 2,387 2,210
Effect of foreign exchange rate changes 50 43
Cash and cash equivalents at end of period 3,199 2,144
Notes
For the six months to 30 June 2022
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 2021 Annual Report. The financial
information for the half years ended 30 June 2022 and 30 June 2021 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 2021
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 2021 was unqualified.
The directors have concluded that the Group has adequate resources to continue
operational existence for the foreseeable future. Accordingly, they continue
to adopt the going concern basis in preparing the half-yearly consolidated
financial statements.
Proteome Sciences plc has applied the same accounting
policies and methods of computation in its interim consolidated financial
statements as in its 2021 annual financial statements.
There have been no new standards adopted since the presentation of the
financial statements for 2021.
The Board of Directors approved this interim report on 4 August 2022.
2. Profit/(loss) per share from continuing operations
Six months Six months
ended ended
30 June 30 June
2022 2021
(unaudited) (unaudited)
Profit/(loss) per share
Profit/loss for the purpose of basic profit/loss per share being net
profit/loss attributable to equity holders of the parent (£'000)
63 (425)
Number of shares
Weighted average number of ordinary shares for the purpose of basic loss per 295,182,056
share
295,182,056
Weighted average number of ordinary shares for the purpose of diluted loss per 306,020,097
share
295,182,056
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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