TIDMAGL
RNS Number : 9841W
Angle PLC
21 April 2023
For Immediate Release 21 April 2023
ANGLE plc
("ANGLE" or "the Company")
Preliminary Results for the year ended 31 December 2022
FDA CLEARANCE A MAJOR BREAKTHROUGH FOR PARSORTIX LIQUID
BIOPSY
Parsortix system substantially out-performs standard of care for
ovarian cancer diagnosis
Prostate cancer partnership signed with Solaris Health
Pipeline of opportunities growing strongly
ANGLE plc (AIM: AGL OTCQX: ANPCY), a world-leading liquid biopsy
company, today announces audited preliminary results for the year
ended 31 December 2022.
2022 was a breakthrough year for ANGLE, with both FDA clearance
and excellent results from the ovarian cancer study. These
achievements have placed ANGLE in a strong position to play a
leading role in the emerging liquid biopsy market for personalised
cancer care and is reflected in strong growth in unaudited revenues
in Q1 2023 year-on-year.
Operational Highlights
Products
-- FDA De Novo clearance received for the Parsortix(R) PC1
Clinical System for its intended use with metastatic breast cancer
(MBC) patients
- first ever FDA product clearance to harvest intact cancer
cells from a patient blood sample for subsequent user-validated
analysis
- multiple global distribution agreements secured to support
commercial roll-out
Pharma services
-- Increased pharma industry engagement post FDA clearance
- repeat contract, worth up to $1.2 million, from large-scale
pharma customer
- assay development contract successfully delivers DNA Damage
Repair (DDR) assay
- ISO 15189 accreditation received for the United States
laboratory
Clinical uses
-- Ovarian cancer
- excellent headline results from ovarian study with ROC-AUC
95.4%
- results demonstrate clinical validity employing molecular
analysis of cancer cells captured using the Parsortix system in a
difficult to diagnose real-world setting
-- Prostate cancer
- partnership established with Solaris Health, a major United
States urology group to evaluate the Parsortix system in prostate
cancer
- clinical study now underway and expected to complete during
2023
Financial Highlights
-- Revenue GBP1.0 million (2021: GBP1.0 million) as previously communicated
-- Loss for the year GBP21.7 million reflecting planned investment (2021: loss GBP15.0 million)
-- Fundraising from institutional investors, including existing
and new institutional investors, raising gross proceeds of GBP20.1
million (GBP18.9 million net of expenses)
-- Cash and cash equivalents at 31 December 2022 of GBP31.9
million (2021: GBP31.8 million) with R&D Tax Credits due at 31
December 2022 of GBP2.8 million (2021: GBP4.5 million)
2023 Progress and Outlook
-- 2023 product and services revenues both progressing well with
unaudited Q1 2023 revenue strongly ahead year-on-year
-- Pharma services business growing well with new customers,
such as Crescendo Biologics, and a growing pipeline of
opportunities under discussion
-- Strong repeat pharma services business model being
demonstrated with existing customers signing additional
contracts
-- Prostate cancer pilot study enrolment on track for headline data around the end of 2023
-- Corporate deal signed with BioView for development of a HER2
breast cancer test, to deliver revenues of c. GBP1.2 million in the
initial phase, and with the prospect of adding other large
corporate partners in due course
-- Encouraging initial results from third-party molecular tests
on the Parsortix CTC harvests opening the potential for high value
molecular tests in the future for pharma services and clinical
use
-- Shortly after the year-end, two new Non-Executive Directors
were appointed strengthening the Board for the next phase of the
Company's development
-- Current pipeline of commercial opportunities supports
management's confidence in delivering strong growth in 2023 and
beyond
Garth Selvey, Non-Executive Chairman of ANGLE plc,
commented:
"2022 was a breakthrough year for ANGLE with the world's first
ever FDA product clearance for a system to harvest CTCs, intact
living cancer cells, from metastatic breast cancer patient blood
for subsequent analysis. This was followed by ANGLE's ovarian
cancer study demonstrating the clinical validity of analysing
Parsortix CTCs for real-world clinical applications.
We are executing on our strategy to commercialise the Parsortix
system through: a product business, with distribution partners for
Parsortix instruments and consumables; and a services business, to
utilise the Parsortix system in cancer drug trials and as an
accelerator and demonstrator to support product sales. In both
business areas, ANGLE is looking to leverage corporate partnerships
to accelerate multiple commercial opportunities through clinical
validation, regulatory approval and reimbursement authorities.
The increasing number of published studies for a variety of
cancer types combined with the FDA clearance have placed ANGLE in a
strong position to play a leading role in the emerging liquid
biopsy market for personalised cancer care. The CTCs harvested by
the Parsortix system have wide applicability for diagnosis,
treatment selection and monitoring to improve patient outcomes and
reduce healthcare costs.
We are pleased to see that 2023 has started strongly and look
forward to continued commercial progress in the year ahead."
Details of webcast
A virtual meeting for analysts will be held at 10:00 am BST
today. A live webcast of the analyst meeting can be accessed via
ANGLE's Investor Centre page,
https://angleplc.com/investor-relations/regulatory-news/ , with
Q&A participation reserved for analysts only. Please register
in advance and log on to the webcast approximately 5 minutes before
10:00 am on the day of the results. A recording of the webcast will
be made available on ANGLE's website following the results
meeting.
For further information:
ANGLE plc +44 (0) 1483 343434
Andrew Newland, Chief Executive
Ian Griffiths, Finance Director
Andrew Holder, Head of Investor Relations
Berenberg (NOMAD and Joint Broker)
Toby Flaux, Ciaran Walsh, Milo Bonser +44 (0) 20 3207 7800
Jefferies (Joint Broker)
Thomas Bective, Shaam Vora +44 (0) 20 7029 8000
FTI Consulting
Simon Conway, Ciara Martin +44 (0) 203 727 1000
Matthew Ventimiglia (US) +1 (212) 850 5624
For Frequently Used Terms, please see the Company's website on
https://angleplc.com/investor-relations/glossary/
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the EU Market Abuse Regulation (596/2014). Upon the publication of
this announcement via a regulatory information service, this
information is considered to be in the public domain.
These Preliminary Results may contain forward-looking
statements. These statements reflect the Board's current view, are
subject to a number of material risks and uncertainties and could
change in the future. Factors that could cause or contribute to
such changes include, but are not limited to, the general economic
climate and market conditions, as well as specific factors
including the success of the Group's research and development,
commercialisation strategies, the uncertainties related to clinical
study outcomes and regulatory clearance, obtaining reimbursement
and payor coverage, acceptance into national guidelines and the
acceptance of the Group's products by customers.
CHAIRMAN'S STATEMENT
Introduction
The ground-breaking FDA product clearance for the Parsortix PC1
Clinical System in metastatic breast cancer heralds a new era for
personalised cancer care. Large-scale medtech and pharma companies
now have an FDA cleared platform on which to develop new diagnostic
solutions for personalised cancer care and ANGLE is now moving to
commercial roll-out of the system.
I am pleased to welcome two new non-executive directors to the
Board, who joined in January 2023. Juliet Thompson, who brings
specialist knowledge in the areas of financing, strategy and
corporate governance, and Dr. Joe Eid, who brings extensive
experience of biomarkers in oncology and a wide pharma industry
network.
Overview of Financial Results
Revenue of GBP1.0 million in the year (2021: GBP1.0 million)
came mainly from research use sales of the Parsortix system with an
initial contribution from the newly established pharma services
business.
ANGLE continued substantial investment in studies to develop and
validate the clinical application and commercial use of the
Parsortix system and to expand its commercial team ahead of
anticipated customer demand, resulting in operating costs for the
year of GBP24.8 million ( 2021: GBP18.0 million) and a loss for the
year of GBP21.7 million (2021: loss GBP15.0 million).
In July 2022, ANGLE moved rapidly post FDA clearance to complete
a capital raise of GBP20.1 million (GBP18.9 million net of
expenses) to support the Company's commercialisation plans through
to mid-2024. The orderly wind down of the site in Toronto, Canada,
and resultant streamlining of the Company's operations in the
second half of 2022 further increases the cash runway into H2 2024,
leaving ANGLE in a strong position to deliver on planned objectives
and milestones.
The Company is tightly controlling its cash resources and, post
year end, the decision was taken not to pay cash bonuses in
relation to 2022 despite strong performance against agreed
objectives during the year. Instead share options and LTIP options
were granted with a three year vesting period and a further two
year holding period for executive directors. Share price
performance conditions were set for senior management and executive
directors, which must be met as a precondition if options are to be
exercised.
Commercial strategy
ANGLE's vision is to secure widespread adoption of the Parsortix
system by providing CTCs as the "best sample" for analysis in the
emerging multi-US$ billion liquid biopsy oncology market. To drive
commercialisation, ANGLE has established both a product business
and a services business.
Both business areas are supported by a growing body of
scientific evidence and clinical studies from leading cancer
centres in published peer-reviewed journals.
Outlook
2022 was a breakthrough year for ANGLE, with both FDA clearance
and the growing level of scientific evidence increasing the
pipeline of opportunities for both our product and pharma services
businesses. The Company is engaging with some of the largest pharma
companies, medtech companies and clinical laboratories globally,
with the capacity to drive Parsortix adoption through multiple
clinical validation, specific regulatory approvals and acceptance
by clinical service payers.
ANGLE is focusing on the most immediate commercial opportunities
and has the resources in place to deliver on its strategic and
commercial plans. The current year has started well with several
new customers and orders confirmed and revenues are up strongly in
Q1 2023 year-on-year.
Garth Selvey
Chairman
20 April 2023
CHIEF EXECUTIVE'S STATEMENT
Commercial strategy
ANGLE's vision is to secure widespread adoption of the Parsortix
technology by providing CTCs as the "best sample" for analysis in
the emerging multi-US$ billion liquid biopsy market. To drive
commercialisation, ANGLE has established both a product business
and a services business with differing regulatory pathways, routes
to market and near and longer-term revenue potential.
1. Product business area
ANGLE has developed the Parsortix system including instruments
and one-time use cassettes that can be sold to third-party
laboratories for their use in research, pharmaceutical development
or clinical use. To enable customers to carry out downstream
analysis of the Parsortix harvest, ANGLE will also offer assay kits
for cell imaging, use protocols and data packets for molecular
platforms and algorithms for clinical interpretation of
results.
2. Services business area
ANGLE has established clinical laboratories in the UK and United
States as accelerators and demonstrators that have the capability
and required quality systems to process patient samples and offer
validated clinical tests using the Parsortix system. The
laboratories, in Guildford, UK and Plymouth Meeting, Pennsylvania,
United States are being used to provide services to pharma and
biotech customers running clinical trials (pharma services) and
will be able to offer laboratory developed tests (LDTs) for patient
management as a first step towards product roll-out of tests.
Both business areas are supported by a growing body of published
evidence from leading cancer centres showing the utility of the
system through peer-reviewed publications, scientific data and
clinical research evidence, highlighting a wide range of potential
applications.
This includes breakthrough research such as that published in
June 2022 by the Molecular Oncology Laboratory at the Swiss Federal
Institute of Technology in Zurich, Switzerland. The study revealed
the link between cancer metastasis and the circadian rhythm,
demonstrating that the spread of breast cancer accelerates during
sleep. The research was published in the high-impact journal Nature
and provides novel insights and potential targets for drug
discovery.
Parsortix products
On 25 May 2022, FDA granted a De Novo Class II classification
for the Parsortix PC1 Clinical System for use in harvesting CTCs,
intact living cancer cells, from metastatic breast cancer (MBC)
patient blood for subsequent analysis. This means that an entirely
new medical device classification has been granted by FDA for the
Parsortix PC1 Clinical System. De Novo clearance is extremely
challenging and costly and consequently is rare and the Parsortix
clearance is the first such medical device classification for a new
instrument in oncology for many years.
With a view to driving longer-term product revenues, during the
year ANGLE expanded its commercial operations team, including
product management, logistics, service and maintenance, and,
following the FDA clearance and CE marking, has successfully
established agreements to build an international network of
oncology focused distribution partners. This network covers
territories in Europe, including Germany, Austria, Czech Republic,
Switzerland, Spain and France, the Middle East, China, India and
New Zealand, with other geographies in discussion. These partners
will provide valuable sales, implementation and ongoing service and
maintenance support in their chosen markets.
Parsortix assay development
To support adoption of its technology by adding "content", ANGLE
has been developing a suite of imaging assays (branded Portrait(+)
) and molecular assays (branded Landscape(+) ) to analyse the
cancer cells harvested by the Parsortix system. These assays are
designed to build a menu for ANGLE's pharma services business and
to be sold as products for third-party customers through the
growing distribution network for use with the Parsortix system.
ANGLE has made good progress in the in-house development of a
pipeline of new products, including a sample-to-answer Portrait(+)
imaging solution for the identification of epithelial and
mesenchymal CTCs as well as CTCs in the process of epithelial
mesenchymal transition (EMT). A Portrait(+) PD-L1 assay is also in
progress, enabling quantitative identification of this key target
protein for immunotherapy on CTCs harvested using the Parsortix
system.
The decision has been taken to focus development of the
downstream molecular assays (Landscape(+) ) on third-party
platforms which have greatly improved in sensitivity and reduced in
cost in recent years and offer an installed base of molecular
products, which can be leveraged for new Parsortix
applications.
Early results for evaluations of third-party systems have been
highly encouraging and offer the prospect of combining the
Parsortix harvest with platforms that are already widely adopted
with a global installed base and where there are targeted
sequencing panels already validated and commercially available for
a wide range of solid tumour types.
Pharma services
The pharma services business utilising the Parsortix system
offers the potential for substantial revenues in the large cancer
drug trials market where ANGLE is clearly differentiated. The FDA
clearance has helped open doors to pharma and the pipeline of
potential pharma services customers has expanded significantly.
There is a growing number of potential new customers and projects
in discussion, including major pharma companies. In addition, ANGLE
anticipates a high level of repeat business opportunities with
existing customers and, during the year, announced it had secured
an additional multi-year contract, worth up to US $1.2 million,
with its first large-scale pharma services customer.
ANGLE made excellent progress during the year with its first
bespoke assay development customer. Following validation in ANGLE's
clinical laboratories, the customer expects to employ the assays in
clinical studies starting in 2023. The assays identify two target
proteins on CTCs that are implicated in DNA Damage Repair (DDR),
-H2AX and pKAP1. This is an area of focus for drug companies
developing PARP inhibitors for a range of solid tumours and the
assays will be added to our "menu" of pre-developed tests that can
be offered to other customers. Initial interest in these assays,
which were introduced at an industry event in early 2023, has been
very encouraging.
To support its pharma services business, ANGLE has been seeking
regulatory accreditation of its Parsortix clinical laboratories in
the United States and UK. ISO 15189 accreditation was received for
the United States laboratory towards the end of the year and is
expected for the UK laboratory in due course. This is an important
achievement and demonstrates that ANGLE's clinical laboratories
maintain globally recognised quality standards meeting all the
requirements of major pharma customers. This is a key element as
pharma services customers require evidence that the laboratories
are stable, robust, compliant, and subject to periodic external
inspections by recognised organisations.
ANGLE believes that longitudinal monitoring of CTCs is a highly
attractive proposition for the pharma industry looking for new
insights in cancer drug trials and that prospects are very positive
for the growth of this business. ANGLE has initiated its roll out
of assays with the EMT and DDR assays being offered to pharma
services customers from the clinical laboratories.
Clinical services
ANGLE intends that its Parsortix clinical laboratories will also
offer a limited number of laboratory developed tests (LDTs) to
physicians for patient management. These tests will act as
"accelerators" of clinical commercialisation and also as
"demonstrators" of clinical utility to support the product
strategy. They will be the first step towards product roll-out of
tests.
Processing of patient samples for clinical purposes requires the
laboratories to be accredited under the appropriate local
regulatory regimes. In March 2022, the Centers for Medicare and
Medicaid Services (CMS) issued a Certificate of Registration, under
the CLIA process, to the Company's United States clinical
laboratory. This is a key step towards achieving CLIA accreditation
of the laboratory. The process will be completed once the first
LDTs are being offered from the laboratories, which is a
requirement.
Parsortix clinical studies
ANGLE is conducting clinical studies in selected high-risk
patient groups. Successful studies demonstrate the value of CTC
analysis by providing evidence of their predictive power.
Successful results will also provide the data required to support
the launch of LDTs from ANGLE's own clinical laboratories as
accelerators and demonstrators (see above). Once published, results
could also encourage third-party laboratories to offer these tests
from their own accredited laboratories, enabling the sale of
instruments and consumables.
Ovarian cancer
ANGLE has utilised Parsortix to investigate the diagnosis of
ovarian cancer in women with an abnormal pelvic mass. Headline
results for the clinical validity study were announced during the
year demonstrating exceptional performance with ROC-AUC (accuracy)
of 95.4%. This was in-line with the Company's earlier clinical
study and achieved the Company's objective of best-in-class results
with both sensitivity and specificity of 90% or greater. This
result far out-performed standard of care for the detection of
ovarian cancer demonstrating the value of the Parsortix system for
real-world clinical decision-making and the clinical relevance of
investigating CTCs.
Following these excellent results, ANGLE has carefully
considered the most appropriate commercial route for this test.
With a view to maximising commercial potential and recognising the
improvement in sensitivity and reduction in costs of other
molecular systems with an established installed base, the
Landscape(+) Ovarian assay will now be optimised utilising a
third-party molecular analysis platform. Validation of the
optimised assay can be undertaken utilising patient samples stored
from the already completed studies. The major advantage of this
approach is it will leverage the third-party installed base
providing them with "content" and will allow a larger scale
product-based commercialisation strategy for ovarian cancer,
substantially increasing market potential and the rate of
adoption.
Prostate cancer
During the year, ANGLE announced it had signed a master clinical
study agreement with Solaris Health Holdings, LLC (Solaris) and
joinder agreements with MidLantic Urology LLC, to collaborate and
conduct clinical studies in prostate cancer and as a potential
route to market in the United States.
MidLantic Urology, an affiliate of Solaris, is one of the
largest providers of specialist urology services in the United
States with more than 70 physicians operating from 47 dedicated
urology centres across the state of Pennsylvania. The Solaris
Health network encompasses more than 500 clinical urology providers
across 179 locations and nine States with more than 729,000 unique
patients annually.
Together with MidLantic Urology, ANGLE has initiated a clinical
study aimed at investigating the use of the Parsortix system for
the detection of prostate cancer and prediction of its severity in
patients who present with an elevated prostate specific antigen
(PSA) level and/or abnormal digital rectal exam.
This study is initially enrolling 100 men scheduled to undergo a
prostate tissue biopsy at a minimum of three study sites. Blood
samples collected by MidLantic Urology are being shipped to ANGLE's
United States clinical laboratory for processing by the Parsortix
system to harvest and analyse CTCs and associated immune cells. The
Parsortix harvests will be evaluated by both imaging and molecular
analysis to assess the potential to predict the presence of
clinically significant prostate cancer prior to tissue biopsy and
to assess potential correlation with established disease severity
scores (e.g., the Gleason score) in those patients found to have
prostate cancer. Patient enrolment for the pilot study is on track
and ANGLE expects headline results around the year end.
Solaris is planned to be ANGLE's first route to market for this
test, offering the established test to their extensive patient base
and opening up a significant market opportunity for ANGLE.
Parsortix corporate partnerships
Addressing a large and complex healthcare market with a new
technology requires significant resources and ANGLE is seeking long
term corporate partnerships on a case-by-case basis to assist in
accelerating market access and maximising commercial potential
across its business lines. The partnership with Solaris Health in
prostate cancer signed during the year provides an example of this
approach, fast-tracking clinical studies and providing a valuable
first route to market with a substantial patient base.
The agreement with BioView to develop a CTC HER2 assay for
breast cancer using a combination of ANGLE's FDA cleared
Parsortix(R) PC1 Clinical System and BioView's automated microscopy
systems and software to detect and assess the HER2 expression
and/or gene amplification in CTCs is another significant
development. The changing market dynamics of the HER2 breast cancer
marketplace, with the introduction of new drugs targeting low HER2
expression, have provided ANGLE and BioView with a major commercial
opportunity to develop a quantitative CTC-based HER2 assay, to
assess HER2 protein expression and/or gene amplification levels by
analysing fluorescence intensities.
This would be the only product-based solution on the market for
this purpose, leveraging both companies' previous FDA product
clearances. Unlike current standard of care tests developed for use
on FFPE tissue, a CTC HER2 assay could be used for longitudinal
monitoring of HER2 status throughout disease progression, thereby
ensuring the patient is targeted for the most appropriate treatment
at every stage. The development phase is estimated to take around a
year to complete and will generate revenue of c. GBP1.2
million.
Given the significant third-party interest in a new assay for
quantitative HER2 analysis based on CTCs, the agreement allows for
the inclusion of third parties in this project and its funding at
the commercialisation stage after the initial development work is
complete. ANGLE continues to discuss strategic routes to market
with potential corporate partners.
As described above, following a review of third-party molecular
systems, ANGLE has focused its resources on evaluating the
performance of Parsortix samples in combination with multiple
third-party downstream DNA and RNA sequencing technologies. Initial
results from these evaluations have been highly encouraging and
ANGLE believes this will open the door to partnering discussions
with these technology providers, who are keen to add "content" to
their product menus.
Summary
Despite very challenging macro conditions outside the Company's
control, ANGLE is making strong progress building both its products
and services businesses. Harvesting intact living cancer cells for
analysis, ANGLE's FDA cleared Parsortix PC1 Clinical System is
differentiated from all other approaches to liquid biopsy and
offers the prospect of cost-effective, non-invasive repeat testing
for cancer patients.
ANGLE is now well on the way to getting this approach adopted by
pharma in the cancer drug trials process and is building the data
to drive adoption in the diagnosis and treatment of cancer patients
to improve patient outcomes and reduce healthcare costs.
Andrew Newland
Chief Executive
20 April 2023
ANGLE PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2022
2022 2021
Note GBP'000 GBP'000
Revenue 1,041 1,013
Cost of sales (428) (302)
----------- ---------
Gross profit 613 711
Other operating income 1 41
Operating costs (24,821) (17,987)
----------- ---------
Operating profit/(loss) (24,207) (17,235)
Finance income 136 29
Finance costs (368) (157)
----------- ---------
Profit/(loss) before tax (24,439) (17,363)
Tax (charge)/credit 5 2,753 2,351
----------- ---------
Profit/(loss) for the year (21,686) (15,012)
Other comprehensive income/(loss)
Items that may be subsequently
reclassified to profit or loss:
Exchange differences on translating
foreign operations (2,023) (175)
----------- ---------
Other comprehensive income/(loss) (2,023) (175)
Total comprehensive income/(loss)
for the year (23,709) (15,187)
=========== =========
Earnings/(loss) per share attributable
to owners of the parent
Basic and Diluted (pence per share) 6 (8.79) (6.67)
All activity arose from continuing
operations.
ANGLE PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
2022 2021
Note GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 2,764 3,573
Property, plant and equipment 3,505 2,172
Right-of-use assets 4,971 2,204
------------ -----------
Total non-current assets 11,240 7,949
------------ -----------
Current assets
Inventories 2,059 1,748
Trade and other receivables 1,797 1,269
Taxation 2,876 4,510
Cash and cash equivalents 31,896 31,839
------------ -----------
Total current assets 38,628 39,366
------------ -----------
Total assets 49,868 47,315
------------ -----------
Liabilities
Non-current liabilities
Lease liabilities (4,339) (1,816)
Provisions (157) -
Trade and other payables (59) (257)
------------ -----------
Total non-current liabilities (4,555) (2,073)
------------ -----------
Current liabilities
Lease liabilities (662) (522)
Provisions (610) -
Trade and other payables (3,978) (4,390)
------------ -----------
Total current liabilities (5,250) (4,912)
------------ -----------
Total liabilities (9,805) (6,985)
------------ -----------
Net assets 40,063 40,330
============ ===========
Equity
Share capital 7 26,058 23,514
Share premium 115,918 99,406
Share-based payments reserve 5,321 2,727
Other reserve 2,553 2,553
Translation reserve (5,983) (3,960)
Accumulated losses (103,702) (83,808)
ESOT shares (102) (102)
------------ -----------
Total equity 40,063 40,330
============ ===========
ANGLE PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2022
2022 2021
GBP'000 GBP'000
Operating activities
Profit/(loss) before tax (24,439) (17,363)
Adjustments for:
Depreciation of property, plant and
equipment 920 701
Depreciation and impairment of right-of-use
assets 940 532
(Profit)/loss on disposal of property,
plant and equipment 172 4
Amortisation and impairment of intangible
assets 978 254
Share-based payment charge 4,386 1,325
Exchange differences (2,072) (170)
Net finance (income)/costs 232 128
----------- ------------
Operating cash flows before movements
in working capital (18,883) (14,589)
(Increase)/decrease in inventories (580) (1,015)
(Increase)/decrease in trade and
other receivables (650) 204
Increase/(decrease) in trade and
other payables (978) 1,417
Increase/(decrease) in provisions 594 -
----------- ------------
Operating cash flows (20,497) (13,983)
Research and development tax credits
received 4,506 -
Overseas tax payments (59) (27)
----------- ------------
Net cash from/(used in) operating
activities (16,050) (14,010)
Investing activities
Purchase of property, plant and equipment (1,718) (1,666)
Purchase of intangible assets (169) (122)
Transfer from short-term deposits - 16,538
Interest received 136 24
----------- ------------
Net cash from/(used in) investing
activities (1,751) 14,774
Financing activities
Net proceeds from issue of share
capital - placing 18,922 18,765
Proceeds from issue of share capital
- share option exercises 123 925
Principal elements of lease payments (814) (614)
Interest elements of lease payments (135) (85)
----------- ------------
Net cash from/(used in) financing
activities 18,096 18,991
Net increase/(decrease) in cash
and cash equivalents 295 19,755
Cash and cash equivalents at start
of year 31,839 12,080
Effect of exchange rate fluctuations (238) 4
Cash and cash equivalents at 31
December 31,896 31,839
=========== ============
ANGLE PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2022
----------- Equity attributable to
owners of the parent--------
Share-based
Share Share payments Other
capital premium reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 21,540 81,532 1,745 2,553
--------
For the year to 31
December 2021
Consolidated profit/(loss)
Other comprehensive
income/(loss):
Exchange differences
on translating foreign
operations
------------------------------ -------- -------- ------------ --------
Total comprehensive
income/(loss)
Issue of shares (net
of costs) 1,974 17,874
Share-based payment
charge 1,325
Released on exercise (295)
Released on forfeiture (48)
At 31 December 2021 23,514 99,406 2,727 2,553
For the year to 31
December 2022
Consolidated profit/(loss)
Other comprehensive
income/(loss):
Exchange differences
on translating foreign
operations
------------------------------ -------- -------- ------------ --------
Total comprehensive
income/(loss)
Issue of shares (net
of costs) 2,544 16,512
Share-based payment
charge 4,386
Released on exercise (43)
Released on forfeiture/lapse (1,749)
At 31 December 2022 26,058 115,918 5,321 2,553
======== ======== ============ ========
ANGLE PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2022 (continued)
-------- Equity attributable to owners
of the parent ----------
Translation Accumulated ESOT Total
reserve losses shares equity
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 (3,785) (69,139) (102) 34,344
For the year to 31
December 2021
Consolidated profit/(loss) (15,012) (15,012)
Other comprehensive
income/(loss):
Exchange differences
on translating foreign
operations (175) (175)
------------------------------ ------------ ------------ -------- ---------
Total comprehensive
income/(loss) (175) (15,012) (15,187)
Issue of shares (net
of costs) 19,848
Share-based payment
charge 1,325
Released on exercise 295 -
Released on forfeiture 48 -
At 31 December 2021 (3,960) (83,808) (102) 40,330
For the year to 31
December 2022
Consolidated profit/(loss) (21,686) (21,686)
Other comprehensive
income/(loss):
Exchange differences
on translating foreign
operations (2,023) (2,023)
------------------------------ ------------ ------------ -------- ---------
Total comprehensive
income/(loss) (2,023) (21,686) (23,709)
Issue of shares (net
of costs) 19,056
Share-based payment
charge 4,386
Released on exercise 43 -
Released on forfeiture/lapse 1,749 -
At 31 December 2022 (5,983) (103,702) (102) 40,063
============ ============ ======== =========
ANGLE PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEARED 31 DECEMBER 2022
1 Preliminary announcement
The preliminary results for the year ended 31 December 2022 were
approved by the Board of Directors on 20 April 2023.
The preliminary announcement set out above does not constitute
ANGLE plc's statutory Financial Statements for the years ended 31
December 2022 or 31 December 2021 within the meaning of section 434
of the Companies Act 2006 but is derived from those audited
Financial Statements.
The auditor's report on the Consolidated Financial Statements
for the years ended 31 December 2022 and 31 December 2021 is
unqualified and does not contain statements under s498(2) or (3) of
the Companies Act 2006.
The accounting policies used for the year ended 31 December 2022
are unchanged from those used for the statutory Financial
Statements for the year ended 31 December 2021. The 31 December
2022 statutory Financial Statements will be delivered to the
Registrar of Companies following the Company's Annual General
Meeting.
2 Compliance with accounting standards
While the financial information included in this preliminary
announcement has been computed in accordance with the measurement
principles of UK-adopted international accounting standards, this
announcement does not itself contain sufficient information to
comply with these accounting standards.
Accounting standards adopted in the year
No new accounting standards that have become effective and
adopted in the year have had a significant effect on the Group's
Financial Statements.
Accounting standards issued but not yet effective
At the date of authorisation of the Financial Statements, there
were a number of other Standards and Interpretations (International
Financial Reporting Interpretation Committee - IFRIC) which were in
issue but not yet effective, and therefore have not been applied in
these Financial Statements. The Directors have not yet assessed the
impact of the adoption of these standards and interpretations for
future periods.
3 Going concern
The Financial Statements have been prepared on a going concern
basis which assumes that the Group will be able to continue its
operations for the foreseeable future.
The Group's business activities, together with the factors
likely to affect its future development, performance and financial
position are set out in the Chairman's Statement.
The Directors have considered the uncertainties, risks and
potential impact on the business associated with potential negative
trading scenarios and market and geopolitical uncertainty
(Ukraine-Russia conflict). Discretionary expenditure within the
business provides flexibility to scale back operations to address
adverse events if required. Mitigation measures to reduce costs
could be taken if needed and other potential sources of funding
exist such as grants, exclusivity and/or milestone payments for
corporate partnerships being developed and equity proceeds.
The Directors have prepared and reviewed the financial
projections for a period in excess of 12 months from the date of
approval of these Financial Statements with discretionary
expenditure carefully controlled in line with available resources,
as certain projects may be deferred until additional resources are
available. Based on the level of existing cash and expected R&D
tax credits, the projected income and expenditure (the quantum and
timing of some of which is at the Group's discretion) and other
potential sources of funding, the Directors have a reasonable
expectation that the Company and Group have adequate resources to
continue in business for the foreseeable future. Accordingly, the
going concern basis has been used in preparing the Financial
Statements.
4 Critical accounting estimates and judgements
The preparation of the Financial Statements requires the use of
estimates, assumptions and judgements that affect the reported
amounts of assets and liabilities at the date of the Financial
Statements and the reported amounts of revenues and expenses during
the reporting year. Although these estimates, assumptions and
judgements are based on the Directors' best knowledge of the
amounts, events or actions, and are believed to be reasonable,
actual results ultimately may differ from those estimates.
The estimates that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities are
described below.
Share-based payment charge
In calculating the fair value of equity-settled share-based
payments the Group uses options pricing models. The Directors are
required to exercise their judgement in choosing an appropriate
options pricing model and determining input parameters that may
have a material effect on the fair value calculated. These key
input parameters are expected volatility, expected life of the
options and the number of options expected to vest.
5 Tax
The Group undertakes R&D activities. In the UK these
activities qualify for tax relief and result in R&D tax
credits.
6 Earnings/(loss) per share attributable to owners of the parent
The basic and diluted earnings/(loss) per share is calculated by
dividing the after tax loss for the year attributable to the owners
of the parent of GBP21.7 million (2021: GBP15.0 million) by the
weighted average number of shares in the year.
In accordance with IAS 33 Earnings per share, 1) the "basic"
weighted average number of Ordinary shares calculation excludes
shares held by the Employee Share Ownership Trust (ESOT) as these
are treated as treasury shares and 2) the "diluted" weighted
average number of Ordinary shares calculation considers potentially
dilutive Ordinary shares from instruments that could be converted.
Share options are potentially dilutive where the exercise price is
less than the average market price during the year. Due to losses
in the 2022 and 2021 reporting years, share options are
non-dilutive for those years as adding them would have the effect
of reducing the loss per share and therefore the diluted loss per
share is equal to the basic loss per share.
The basic and diluted earnings/(loss) per share are based on
246,579,644 weighted average ordinary GBP0.10 shares for the year
(2021: 225,073,380).
7 Share capital
The Company has one class of Ordinary shares which carry no
right to fixed income and at 31 December 2022 had 260,580,547
Ordinary shares of GBP0.10 each allotted, called up and fully paid
(2021: 235,143,050).
The Company issued 25,162,500 new Ordinary shares with a nominal
value of GBP0.10 at an issue price of GBP0.80 per share in a
placing of shares realising gross proceeds of GBP20.1 million.
Associated costs of GBP1.2 million were incurred. Shares were
admitted to trading on AIM in July 2022.
The Company issued 274,997 new Ordinary shares with a nominal
value of GBP0.10 at exercise prices between GBP0.385 to GBP0.530
per share as a result of the exercise of share options by employees
realising gross proceeds of GBP0.1 million. Shares were admitted to
trading on AIM at various dates across the year.
8 Shareholder communications
Copies of this announcement are posted on the Company's website
www.ANGLEplc.com .
The Annual General Meeting (AGM) of the Company will be held at
2:00 pm on Wednesday 28 June 2023 at the Holiday Inn Guildford,
Egerton Road, Guildford, GU2 7XZ. The Board is looking forward to
welcoming shareholders to the AGM in person. Details will be
included in the notice of AGM.
Notice of the AGM will be enclosed with the audited statutory
Financial Statements.
The audited statutory Financial Statements for the year ended 31
December 2022 are expected to be distributed to shareholders no
later than 1 June 2023 and will subsequently be available on the
Company's website or from the registered office, 10 Nugent Road,
Surrey Research Park, Guildford, GU2 7AF.
This preliminary announcement was approved by the Board of
Directors on 20 April 2023.
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END
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