REG - Proteome Sciences - Interim Results
25/08/2023 07:00
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RNS Number : 4019K Proteome Sciences PLC 25 August 2023
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. 25 August 2023
Proteome Sciences plc
("Proteome Sciences" or the "Company")
Interim results for the six months ended 30 June 2023
Proteome Sciences announces its unaudited interim results for the six months
ended 30 June 2023.
Financial highlights:
· Proteomics services revenues £1.01m (H1 2022: £0.85m)
· TMT(®) reagent sales and royalties £2.20m (H1 2022: £2.39m)
· Total revenues £3.21m (H1 2022: £3.24m)
· Gross profit £1.77m (H1 2022: £1.80m)
· Cost of sale and administrative costs £3.37m (H1 2022: £2.98m)
· Adjusted EBITDA** £0.27m (H1 2022: £0.64m)
Commenting on these results, Dr. Mariola Soehngen, Chief Executive Officer of
Proteome Sciences, said:
"Our revenues from TMT(®) and TMTpro™ reagents continue to be the most
significant source of income.
TMT sales were £1.45m in H1 2023 compared to £1.45m in H1 2022. Royalties
were £0.75m in H1 2023 compared to £0.94m in H1 2022, a decline of 20%
mainly due to the adjustment in royalty rate under the exclusive licence and
distribution agreement with Thermo Scientific after the expiration of the
earliest TMT patent.
Our service business started 2023 with a strong order book and large bank of
samples. We report another strong first half with service revenues up 19% over
the same period in 2022, despite the macroeconomic challenges which have hit
the markets in general and our industry. We remain confident to deliver
further growth in the second half of the year in our service business.
Over the last 3 months we have steadily increased performance and consistency
of our SysQuant(®) SCP workflow for single cell proteomics. We are now
measuring over 1,100 proteins per cell and can process over 500 cells per
experiment, revealing differences in disease processes and treatment response
that will empower new approaches in drug development. Final preparations for
launch of the SysQuant(®) SCP are underway and we are already experiencing
strong customer interest.
In the life cycle management of our TMT(®) reagents we have run a program to
extend the TMTpro™ multiplexing rate to 32. Initial testing has been
positive and we are progressing well with manufacturing of the 14 additional
tags that combine with the existing 18plex reagents. We are also working on a
first generation of new isotopic tags for use in multiplexed data-independent
acquisition ("plexDIA"). We have a sixplex product manufactured and are
completing proof of concept studies in partnership with external
collaborators. We are also actively progressing licensing discussions and
expect to launch them shortly with a strong distribution partner.
Earlier this year we took an important step in growing our business, with the
announcement that we intend to open a US lab in the fourth quarter of this
year. Whilst we already have an excellent customer base in the US, concerns
over shipping costs, timing delays and customs delays have restricted the
volume of orders that could be processed. We will now be able to provide a
more accessible service to the rapidly growing pharma/biotech community across
the US as the demand for proteomics services continues to expand. We are
looking forward to launching our improved service to the US marketplace with
the opening of the San Diego facility later this year.
In May 2023, due to the strong cash position, the Company repaid in full the
outstanding loan and associated interest (together totalling £824,424) to
Vulpes Investment Management Private Limited.
We continue to make strategic investments in new equipment, new technology
(SysQuant(®) SCP) and additional staff - both in Europe and the US subsidiary
- and we are confident that these should be well reflected in the future
growth of our business."
**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
Abdelghani Omari, Chief Financial Officer
Allenby Capital Limited (AIM Nominated Adviser & Broker)
John Depasquale / Jeremy Porter (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 increased 19% in the first half
of 2023 to £1.01m (H1 2022: £0.85m) reflecting the strong order book and
banked samples we carried forward from 2022. We expect high demand for the
service business extending into the second half of 2023.
News on the opening of our US laboratory in San Diego has been very well
received by US biopharma and has initiated new discussions on projects that
either need to be undertaken in the US, or where local analyses of samples is
preferred. We anticipate a number of orders coming to fruition by the time the
laboratory is open later this year.
Interest in our Single Cell Proteomics services is strong and discussions with
several biopharma accounts have been progressing well, with orders anticipated
to arrive over the summer as we move to the commercial launch of this new
service soon.
With the introduction of the US laboratory and Single Cell Proteomics, we
remain active in trade shows and external seminars to broaden further our
outreach and customer base.
TMT(®)
Revenues from sales of TMT(®) and TMTpro™ reagents and royalties were
£2.20m compared to £2.39m in the prior-year period, a decline of 8%. This
reflects a small adjustment in royalties to sub-licensing revenue which
totalled £0.75m in H1 2023 (H1 2022: £0.94m) following the final expiry of
the earliest TMT patents. We have ongoing patents running to the mid 2030's in
respect of the TMTpro™ reagents and no further reduction of the royalty rate
on these products is expected. Sales of tags remained level during the period
at £1.45m (H1 2022: £1.45m). We are seeing some volatility in the market
with label-free methods but this is anticipated to be offset by growth in the
number and value of commercial sub-licensees using TMT(®)/TMTpro™ products
in their commercial services.
Outlook
The board is confident of maintaining the good performance into the second
half of the year. TMT revenues remain strong and we have good dynamic in the
order generation of our service business. The launch of SysQuant(®) SCP and
the setting up of our US lab are important investments and we expect these to
provide a good basis for further growth of the business.
Dr. Mariola Soehngen
Chief Executive Officer
25 August 2023
Chief Financial Officer's Report
Revenues in the first half of 2023 were 1% lower at £3.21m compared to the equivalent period in 2022 (£3.24m), TMT(®) and TMTpro™ sales were flat year-over-year and amounted to £1.45m (H1 2022: £1.45m) and TMT(®) royalties were £0.75m in H1 2023 compared to £0.94m in H1 2022, a decline of 20% mainly due to a reduced royalty rate under the exclusive licence and distribution agreement with Thermo Scientific after the expiration of the earliest TMT patent. Proteomics service revenues increased 19% to £1.01m (H1 2022: £0.85m).
Costs of sales and administrative expenses increased by 13% to £3.37m (30
June 2022: £2.98m). Major cost drivers included higher spent on production
materials, higher travel and patent costs and exchange rate losses. Financing
costs for the first half increased to £0.38m in comparison with £0.19m in
the previous period due to increases of interest rates by the Bank of England.
( )
Adjusted EBITDA** decreased to £0.27m (H1 2022: £0.64m), which is primarily
attributable to flat revenues and higher costs.
The Company has generated £0.92m cashflow from operating activities in H1
2023. In May 2023, the Company repaid in full the outstanding loan and
associated interest (together totalling £824,424) to Vulpes
Investment Management Private Limited. As at 30 June 2023 the Group had cash
resources of £3.79m (30 June 2022: £3.20m).
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
£'000 £'000
Continuing operations
Revenue 3,210 3,243
Gross Profit 1,767 1,802
Administrative Expenses * (1,930) (1,535)
Operating Profit (163) 267
Depreciation 289 259
EBITDA 126 526
Non-cash item: share based payment expenses 143 118
Adjusted EBITDA ** 269 644
* 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
25 August 2023
Consolidated income statement
For the six months ended 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
Note £'000 £'000
Continuing operations
Revenue
Licences, sales & services 3,210 3,243
Cost of sales (1,443) (1,441)
Gross profit 1,767 1,802
Administrative expenses (1,930) (1,535)
Operating (loss)/profit (163) 267
Finance costs (384) (192)
(Loss)/profit before taxation (547) 75
Tax (31) (12)
(Loss)/profit for the period (578) 63
(Loss)/profit per share 2
Basic (0.20p) 0.02p
Diluted (0.20p) 0.02p
Consolidated statement of comprehensive income
For the six months ended 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
£'000 £'000
(Loss)/profit for the period (578) 63
Other comprehensive income for the period
Exchange differences on translation of foreign operations (103) 50
(681) 113
Total comprehensive (Expense)/income for the period
Consolidated balance sheet
As at 30 June 2023
30 June 31 December
2023 2022
(unaudited) (audited)
£'000 £'000
Non-current assets
Goodwill 4,218 4,218
Property, plant and equipment 411 444
Right-of-use asset 645 873
5,274 5,535
Current assets
Inventories 912 901
Trade and other receivables 759 1,443
Contract assets 364 560
Cash and cash equivalents 3,787 3,994
5,822 6,898
Total assets 11,096 12,433
Current liabilities
Trade and other payables (648) (823)
Contract liabilities (104) (104)
Borrowings (10,809) (11,262)
Lease Liabilities (283) (300)
(11,844) (12,489)
Net current liabilities (6,022) (5,591)
Non-current liabilities
Lease liabilities (197) (353)
Pension Provisions (436) (434)
Total non-current liabilities (633) (787)
Total liabilities (12,477) (13,276)
Net liabilities (1,381) (843)
Equity
Share capital 2,952 2,952
Share premium account 51,466 51,466
Share-based payment reserve 4,639 4,495
Merger reserve 10,755 10,755
Translation and others reserve (124) 31
Retained loss (71,069) (70,542)
Total shareholders deficit (1,381) (843)
Consolidated cash flow statement
For the six months to 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
£'000 £'000
(Loss)/profit after tax (578) 63
Adjustments for:
Net finance costs 384 192
Depreciation of property, plant and equipment and right of use assets 288 259
Tax charge /(credit)
31 12
Share-based payment expense 143 118
Operating cash flows before movements in working capital 268 644
(Increase)/decrease in inventories (11) 50
Decrease/(increase) in receivables 879 (333)
Decrease/(increase)in payables (188) 668
Increase in provisions 3 27
Cash generated from operations 951 1,056
Tax paid (31) (12)
Net cash Inflow from operating activities 920 1,044
Cash flows from investing activities
Purchases of property, plant and equipment (27) (84)
Net cash outflow from investing activities (27) (84)
Financing activities
Lease payments (173) (198)
Loan repayment (824) -
Net cash outflow from financing activities (997) (198)
Net Increase/(decrease) in cash and cash equivalents (104) 762
Cash and cash equivalents at beginning of period 3,994 2,387
Effect of foreign exchange rate changes (103) 50
Cash and cash equivalents at end of period 3,787 3,199
Notes
For the six months to 30 June 2023
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 2022 Annual Report. The financial
information for the half years ended 30 June 2022 and 30 June 2023 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 2022
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 2022 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 2022 annual financial statements.
There have been no new standards adopted since the presentation of the
financial statements for 2022.
The Board of Directors approved this interim report on 25 August 2023.
2. Loss/(profit) per share from continuing operations
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
Loss/(profit) per share
Loss/(profit) for the purpose of basic profit/loss per share being net
profit/loss attributable to equity holders of the parent (£'000)
(578) 63
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 309,593,135 306,020,097
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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