TIDMSCLP
RNS Number : 5500J
Scancell Holdings Plc
20 August 2019
20 August 2019
Scancell Holdings Plc
("Scancell" or the "Company")
Final Results for the year ended 30 April 2019
Immunotherapy pipeline advances; new investment provides further
endorsement of future potential
Scancell Holdings plc, the developer of novel immunotherapies
for the treatment of cancer, today announces its results for the
year ended 30 April 2019.
Highlights:
-- The Company received regulatory and ethical approval for the
UK arm of the SCIB1 Phase 2 clinical trial
-- Scancell exercised its option to a worldwide commercial
licence for the use of Ichor Medical Systems' TriGrid(R) 2.0
electroporation delivery system with SCIB1
-- Patents granted in Europe and Japan providing broad
protection of Scancell's Moditope(R) technology; a patent granted
in the US that provides protection for Modi-1; and a further
European patent granted relating to FG88, a monoclonal antibody
directed against tumour associated glycans
-- Strategic research collaboration with the Rheumatology Unit
at the Karolinska Institute expanded to explore the potential of
Moditope(R) to develop multiple immunotherapeutic agents for a
range of different cancers
-- Pre-clinical development underway with Modi-2, including
progress made in the characterisation of homocitrullinated peptides
allowing Modi-2 to potentially address tumours with a particularly
immunosuppressive environment
-- Dr Samantha Paston appointed as Head of Research and Dr
Adrian Parry appointed as Head of Manufacturing
-- Professor Lindy Durrant received the Waldenström award from
the Swedish Society of Oncology
-- GBP1.1m raised in an open offer to shareholders, following a
placing of GBP6.9m at the end of the previous financial year
-- Loss for the 12-month period of GBP5.63 million (2018: loss: GBP4.19 million)
-- Group cash balance at 30 April 2019 was GBP4.56 million (30 April 2018: GBP10.30 million)
Post Period Highlights:
-- Initiation of the UK arm of the SCIB1 Phase 2 clinical trial
in patients with advanced melanoma also receiving the checkpoint
inhibitor pembrolizumab (Keytruda(R)); following withdrawal of the
IND for the US arm of the study, the Company plans to re-submit
this to allow for US patient recruitment to proceed in due
course
-- Gross proceeds of GBP3.9m raised by the issue of 77,559,311
new ordinary shares to Vulpes Life Sciences Fund
-- Martin Diggle, Co-Founder and Portfolio Manager of Vulpes
Investment Management, appointed to the Board of Directors as a
Non-Executive Director
-- Clinical Advisory Board established, chaired by Professor
Robert Coleman, to provide strategic guidance around the
Moditope(R) clinical development programme
-- Modi-1 manufacturing and toxicity testing underway to support
anticipated start of Phase 1/2 study in
H1 2020
-- Cancer Research UK planning a Phase 1/2 trial to investigate
the safety and efficacy of SCIB2
using a new nanoparticle formulation in patients with solid
tumours
Cliff Holloway, CEO of Scancell, commented:
"We have made strong progress this year in advancing our
pipeline of novel immunotherapies. Importantly, post period, we
were pleased to initiate the UK arm of the SCIB1 Phase 2 trial,
whilst disappointed with the need to withdraw our IND application
to achieve this. We intend to resubmit the IND at the earliest
opportunity.
We have expanded our R&D team and established a Clinical
Advisory Board who will inform the clinical strategy for the
planned Modi-1 trial in several solid tumour indications. We also
welcome Vulpes as a significant shareholder and Board member.
Vulpes' investment into Scancell provides further endorsement of
the Company's future potential."
A full copy of the announcement can be found on the Scancell
website: www.scancell.co.uk
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 (MAR).
For Further Information:
Scancell Holdings Plc
Dr John Chiplin, Chairman +44 (0) 20 3727 1000
Dr Cliff Holloway, CEO
Panmure Gordon (UK) Limited
(Nominated Adviser and Corporate
broker)
Freddy Crossley/Emma Earl +44 (0) 20 7886 2500
FTI Consulting
Simon Conway/Natalie Garland-Collins +44 (0) 20 3727 1000
About Scancell
Scancell is developing novel immunotherapies for the treatment
of cancer based on its ImmunoBody(R) and Moditope(R) technology
platforms.
ImmunoBody(R) vaccines target dendritic cells and stimulate both
parts of the cellular immune system. They can be used as
monotherapy or in combination with checkpoint inhibitors. This
platform has the potential to enhance tumour destruction, prevent
disease recurrence and extend survival.
-- SCIB1, the lead programme, is being developed for the
treatment of melanoma. A phase 1/2 clinical trial has so far
successfully demonstrated survival data of more than five
years.
-- SCIB2 is being developed for the treatment of non-small cell
lung cancer and other solid tumours. Scancell has entered into a
clinical development partnership with Cancer Research UK for
SCIB2.
Moditope(R) represents a completely new class of potent and
selective immunotherapy agents. It stimulates the production of
killer CD4 T cells which overcome the immune suppression induced by
tumours, allowing activated T cells to seek out and kill tumour
cells that would otherwise be hidden from the immune system.
Moditope(R) alone, or in combination with other agents, has the
potential to treat a wide variety of cancers.
-- Modi-1 is being developed for the treatment of multiple solid tumours.
For further details, please see our website:
www.scancell.co.uk
CHAIRMAN'S STATEMENT
I am pleased to report the Company's final results for the year
ended 30 April 2019. At the beginning of this financial year the
Company raised GBP1.1m (net of costs) through an Open Offer to
shareholders following an earlier fund raise of GBP6.9m (net of
costs) and I'd like to thank our shareholders for their continued
support. Since the year end the Company has raised a further
GBP3.9m from Vulpes Life Science Fund through a subscription for
new shares. This new investment capital increases funds available
to advance our product pipeline and, in particular the transition
of our lead Moditope(R) platform asset Modi-1 into the clinic.
Progress has been made in all areas and we are particularly pleased
that the SCIB1-002 clinical trial, which will assess the efficacy
and safety of SCIB1 and pembrolizumab in patients with advanced
melanoma, is now underway.
ImmunoBody(R) platform
Scancell's ImmunoBody(R) immunotherapy platform uses the body's
immune system to identify, attack and destroy tumours. This is
achieved by delivering a DNA plasmid to enhance the uptake and
presentation of cancer antigens to harness high avidity T cell
responses. Each ImmunoBodyÒ vaccine can be designed to target a
particular cancer in a highly specific manner, offering the
potential for enhanced efficacy and safety compared with more
conventional approaches.
SCIB1 melanoma vaccine and Phase 2 clinical trial
As mentioned in last year's Annual Report, in July 2018,
Scancell exercised its option to a worldwide commercial licence for
the use of Ichor's proprietary TriGrid(R) 2.0 electroporation
delivery system with SCIB1. This licence enables Scancell to use
the TriGrid(R) 2.0, the proposed commercial version of this device,
in the Phase 2 clinical study of Scancell's lead ImmunoBody(R),
SCIB1, in patients with advanced melanoma who are also receiving
the checkpoint inhibitor pembrolizumab (Keytruda(R)). Although
pembrolizumab is an approved therapy for advanced melanoma,
response to treatment is limited to only a subset of patients
(circa 30%). The Phase 2 study is therefore designed to assess
whether the addition of SCIB1 treatment will result in an
improvement in the tumour response rate, progression-free survival
and overall survival in 25 patients with advanced melanoma who are
also eligible for treatment with pembrolizumab.
As reported at the half year, following the submission of an
Investigational New Drug (IND) application for the clinical study
to the US Food and Drug Administration ("FDA" or "Agency"), the FDA
had responded requesting additional information, with respect to
Ichor's new TriGrid(R) 2.0 electroporation delivery system and its
use in combination with SCIB1. Scancell has previously used Ichor's
TriGrid(R) 1.0 delivery system in the SCIB1 Phase 1/2 clinical
study in patients with Stage III/IV malignant melanoma. In this
study SCIB1 was shown to have a favourable safety profile with no
dose-limiting toxicities and no serious adverse events related to
study drug or the delivery device, in addition to inducing strong
immune responses and enhancing survival.
In order to initiate patient recruitment in the UK under the
Investigational New Drug (IND) application submitted to the Agency,
prior approval of the IND is required. Whilst there has been
extensive dialogue between Ichor and the Agency, a timely
resolution to the device-specific questions has yet to be agreed.
Therefore, as reported on 19 August 2019, having considered the
ethical issues related to patients awaiting enrolment into the UK
sites, Scancell decided to withdraw its IND application in the US
to allow the UK arm of the trial to proceed with immediate effect.
Scancell will resubmit the IND at a later date with the intent to
initiate clinical sites in the US, following further clarification
from the Agency regarding Ichor's TriGrid(R) 2.0 delivery
device.
SCIB2 vaccine
SCIB2, Scancell's second ImmunoBody(R) therapy, targets an
antigen called NY-ESO-1, which is expressed on a range of solid
tumours, including non-small cell lung cancer (NSCLC), oesophageal,
ovarian, bladder and prostate cancers, as well as neuroblastoma,
melanoma and sarcoma.
In May 2019 Scancell and Cancer Research UK provided an update
on their clinical development partnership for the development of
Scancell's ImmunoBody(R) vaccine, SCIB2, as a potential treatment
for patients with solid tumours, including NSCLC.
Pre-clinical studies have demonstrated that administration of
the SCIB2 DNA plasmid as a liposomal nanoparticle results in potent
immune responses and prolonged survival. The nanoparticle
technology utilises known lipid carriers that are optimised to
deliver SCIB2 DNA to immune cells. The liposomal nanoparticles
protect the DNA from degradation and facilitate efficient uptake,
expression and T-cell activation against cancer cells. The
nanoparticle delivery system provides an alternative approach to
electroporation, which has been used to deliver the SCIB1
ImmunoBody(R) agent to patients. This new nanoparticle approach to
deliver SCIB2 is expected to achieve results that are as effective
as, or even better than, electroporation.
Cancer Research UK are now planning a clinical trial to
investigate the safety and efficacy of the SCIB2-nanoparticle
complex in patients with solid tumours.
Moditope(R) platform
Scancell's Moditope(R) is an immunotherapy platform targeting
tumour associated stress-induced post-translational modifications
(siPTMs) to stimulate the production of unprecedented killer
T-helper cell (CD4 T-cells) responses that induce anti-tumour
activity without toxicity. Moditope(R) vaccines comprise
citrullinated or homocitrullinated tumour-associated peptide
epitopes which stimulate the production of cytotoxic CD4 T-cells
which identify, target and destroy the tumour cells. Pre-clinical
studies have shown that conjugation of the Modi-1 peptides to
Amplivant(R) enhances anti-tumour immune responses 10-100 fold and
resulted in highly efficient tumour eradication, including
protection against tumour recurrence.
Modi-1
Modi-1 consists of two citrullinated vimentin peptides and one
citrullinated enolase peptide. Vimentin and enolase peptides are
highly expressed in triple negative breast cancer (TNBC), ovarian
cancer, head and neck cancer, as well as many other cancers.
A defined manufacturing process is a key component for CMC
(Chemistry, Manufacturing and Control) regulatory submissions
required to support the filing of a clinical trial application
(CTA) in the UK. Good Manufacturing Practice (GMP) synthesis of the
bulk Modi-1 peptide conjugates is underway at the PolyPeptide
Group's facilities in The Netherlands. An agreement was signed with
AMRI (Glasgow, UK), a global contract and manufacturing
organisation, at the end of April 2019, to formulate, manufacture
and package the Modi-1 GMP final product for clinical testing. The
preclinical toxicity testing programme required prior to the start
of the clinical trial is underway to support the planned Phase 1/2
clinical study, which is anticipated to commence in H1 2020.
Modi-2
Whilst Modi-1 acts by stimulating the production of CD4 T cells
using citrullinated tumour-associated peptide epitopes, Modi-2
exploits a new modification, stimulating the production of
cytotoxic CD4 T cells using homocitrullinated tumour-associated
peptide epitopes. Whereas citrullination involves the conversion of
the amino acid arginine to citrulline, the process of
homocitrullination involves the conversion of lysine to
homocitrulline. Scancell believes this second mechanism of action
has the potential to broaden the utilisation of the Moditope(R)
platform.
Modi-2 is currently in pre-clinical development and work is
underway to characterise specific homocitrullinated peptides for
clinical development that have the potential to address different
cancer indications to Modi-1, including tumours with a particularly
immunosuppressive environment.
The data generated to date clearly demonstrates the potential of
homocitrullinated, as well as citrullinated, tumour-associated
peptide epitopes to be developed for the treatment of solid
cancers.
Collaborations
Scancell was pleased to extend its strategic research
collaboration with the Rheumatology Unit at the Karolinska
Institute, Sweden. The expanded agreement will explore the
potential of the Moditope(R) platform to develop multiple
immunotherapeutic agents for a range of different cancers.
Scancell's research has shown that citrullinated proteins are
involved in the control of tumour growth and we believe that this
expanded collaboration will help us to further develop Moditope(R),
not only for use in cancer vaccines, but also other cancer
immunotherapy approaches including T-cell receptor (TCR) based
therapeutics which is also the subject of Scancell's research
collaboration with BioNTech announced in January 2018.
Patents
The European Patent Office granted a European Patent for the
Company's Moditope(R) Immunotherapy platform with effect from 13
June 2018. This patent provides broad protection for the Company's
pipeline of Moditope(R) vaccines, including any citrullinated
epitopes for the treatment of cancer, in all major European
territories. This is a key patent for Scancell and endorses our
work in identifying a new class of cancer vaccine capable of
inducing potent immune responses to (siPTMs), in this case, through
citrullination of cellular proteins.
A US patent was granted on 19 March 2019 and claims methods of
stimulating an immune response to a tumour and methods of treating
cancer using peptides included in the Modi-1 product. Additional
claims that aim to protect other aspects of the Moditope(R)
platform are being pursued in the US.
In April 2019, the Japanese Patent Office granted a patent that
provides further protection for Scancell's Moditope(R)
immunotherapy platform. This patent covers using any citrullinated
tumour-associated T cell epitope to treat patients with cancer.
The grant of these patents is in addition to the grant of
patents in South Africa and Australia, and acceptance for grant in
China. Counterparts to these patents continue to be prosecuted in
other territories of importance to Scancell in order to further
expand Scancell's IP portfolio.
Clinical Advisory Board
In May 2019 the Group created a Clinical Advisory Board ('CAB')
as part of a wider strategy to fully develop and deliver the full
potential of the Moditope(R) platform across multiple tumour types.
The CAB is chaired by Professor Robert Coleman, Emeritus Professor
of Medical Oncology at Weston Park Hospital and the University of
Sheffield and together with Professor Coleman includes a further
five world-leading clinicians. The initial focus of the Board is to
inform the clinical strategy for the planned Modi-1 clinical trial
and to ensure the best possible outcome in several solid tumour
indications, including ovarian cancer, head and neck cancer, and
triple negative breast cancer.
Monoclonal antibodies
Monoclonal antibody therapeutics have proven to be effective in
the treatment of many cancer indications and identification of new
products against novel targets are highly sought after in the
field. In April 2018, Scancell acquired, from the University of
Nottingham, a number of novel monoclonal antibodies against
tumour-associated glycans with the aim to further develop and
identify lead therapeutic candidates.
Glycans are sugar molecules that are present on cell surface
glycoproteins and glycolipids. The pattern of these glycans differ
between tumour cells and healthy cells. Glycans are involved in
regulation of many physiological processes and inhibition of these
leads to rapid cell death. Antibodies that target such tumour
glycan signatures therefore provide an attractive strategy for
immunotherapy. The novel monoclonal antibody platform acquired by
Scancell not only enables high avidity monoclonal antibodies
recognising glycans to be developed but also provides a method to
enhance their anti-tumour efficacy. This technology offers a new
opportunity for collaboration and commercial transactions with
antibody engineering companies looking for differentiated
therapeutic targets.
Corporate
During the financial year Scancell announced the appointment of
Dr Samantha Paston as Head of Research and Dr Adrian Parry as Head
of Manufacturing. Dr Paston started in her role in mid-January 2019
and Dr Parry joined the Company in early February 2019. These two
appointments are significant for Scancell as we expand our R&D
and manufacturing capabilities in order to further advance our
ImmunoBody(R) and Moditope(R) pipeline products through clinical
development.
Staff
The Board recognises that the progress made over the year would
not have been possible without the dedication and support of all
our staff and, on behalf of the directors, I offer our thanks to
them.
Financial
Profit or Loss and Other Comprehensive Income Statement
The Group made an operating loss for the year to 30 April 2019
of GBP6.73 million (2018: loss of GBP4.94 million).
There has been a significant increase in development expenditure
to GBP4.15 million (2018: GBP2.86 million) and the main reasons for
this are: the manufacture of a new GMP batch of SCIB1; the
commencement of GMP manufacture of Modi-1; regulatory and set up
costs arising as the Company prepares for the upcoming clinical
trials with SCIB1 and Modi-1; together with the impact of a full
year's cost of R&D staff who were recruited at the end of the
2017/18 year.
The increase in administrative expenditure is due to a
significant increase in patent costs and licence fees. The
increases in patent costs reflects the Company's continued
protection and extension of its intellectual property
portfolio.
The loss before taxation amounted to GBP6.87 million (2018:
GBP4.94 million) The R&D tax credit increased to GBP1.09
million (2018: GBP0.74 million) as a result of the increased
development expenditure in the year.
Overall the loss for the year was GBP5.63 million (2018: loss
GBP4.19 million).
Statement of Financial Position
At 30 April 2019 the net assets of the Group amounted to GBP9.34
million (2018: GBP13.94 million) including cash at bank of GBP4.56
million (2018: GBP10.30 million).
The tax receivable due at the end of the year amounted to
GBP1.83 million (2018: GBP0.74 million) and relates to the R&D
tax credit for the 2018/19 and 2017/18 financial years. The amount
outstanding in respect of the prior year was received in May 2019,
shortly after the year end.
The increase in trade and other receivables to GBP678k (2018:
GBP97k) arises as a result of an increase in pre-paid expenditure
relating to the manufacture of Modi-1 which will be expensed during
the 2019/20 financial year together with increased VAT recoverable
as a result of increased expenditure on manufacturing during the
last month of the financial year.
The trade and other payables haves also increased to GBP1.21
million (2018: GBP0.70 million) as a result of the increase in
manufacturing and development expenditure in the last month of the
year. All balances owing to suppliers at the end of the year were
paid in accordance with their terms and conditions.
Consolidated Cash Flow Statement
As can be seen in the Consolidated Cash Flow Statement, the main
reason for the decrease in cash over the previous year as that cash
used in operations of GBP7.03 million (2018: GBP4.81 million) was
offset by net proceeds from the issue of shares amounting to
GBP1.28 million (2018: GBP11.70 million). In addition, the tax
credit of GBP744k in respect of the prior year was not received
until May 2019, after the year end.
Outlook
It has been a busy and productive year for Scancell. In addition
to expanding our research and development team and establishing a
Clinical Advisory Board of world class clinical oncologists, we
further advanced our ImmunoBody(R), Moditope(R) and anti-glycan
antibody pipeline and expanded our intellectual property
portfolio.
Notwithstanding the US regulatory delays in initiating the Phase
2 clinical trial for our lead ImmunoBody(R), SCIB1, which have been
disappointing, the Company is now making good progress having
recently started this clinical study in the UK.
GMP manufacture of our lead Moditope(R) vaccine, Modi-1, is
progressing well and this is a key milestone towards clinical
trials which are anticipated to commence in H1 2020. The design of
this study is currently under review following input from our
Clinical Advisory Board and will aim to identify clinical signals
in several cancer indications in parallel and determine the broad
clinical utility of this novel cancer vaccine.
Our monoclonal antibodies and associated technologies are now
firmly established as a third platform in the Scancell portfolio
and we look forward to updating the market on the development of
these assets in due course.
We were pleased to welcome Vulpes as a shareholder in June and
their investment not only strengthens our cash position, but also
provides a sound endorsement of Scancell's future potential.
John Chiplin
Chairman
CONSOLIDATED PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME STATEMENT 2019 2018
for the year ended 30 April 2019 GBP GBP
Development expenses (4,151,950) (2,855,264)
Administrative expenses (2,577,062) (2,086,536)
-------------------------- --------------------------
OPERATING LOSS (note 2) (6,729,012) (4,941,800)
Interest receivable and similar income 15,002 2,753
-------------------------- --------------------------
LOSS BEFORE TAXATION (6,714,010) (4,939,047)
Taxation (note 3) 1,086,523 744,538
-------------------------- --------------------------
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE
YEAR (5,627,487) (4,194,509)
-------------------------- --------------------------
EARNINGS PER ORDINARY SHARE (pence)
(note 4)
Continuing operations
Basic (1.45)p (1.34)p
Diluted (1.45)p (1.34)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 April 2019
2019 2018
ASSETS GBP GBP
Non-current assets
Plant and machinery 58,514 76,910
Goodwill 3,415,120 3,415,120
--------- ---------
3,473,634 3,492,030
--------- ---------
Current assets
Trade and other receivables 677,614 97,304
Tax receivables 1,831,061 744,538
Cash and cash equivalents 4,559,949 10,303,168
----------- ----------
7,068,624 11,145,010
----------- ----------
TOTAL ASSETS 10,542,258 14,637,040
LIABILITIES
Current Liabilities
Trade and other payables (1,205,410) (696,090)
----------- ----------
TOTAL LIABILITIES (1,205,410) (696,090)
----------- ----------
NET ASSETS 9,336,848 13,940,950
----------- ----------
SHAREHOLDERS' EQUITY
Called up share capital 387,797 374,469
Share premium 34,638,688 33,374,624
Share option reserve 381,562 635,569
Profit and loss account (26,071,199) (20,443,712)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 9,336,848 13,940,950
------------ ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 April 2019
Share Share Share Retained
Capital Premium Option Earnings Total
GBP GBP GBP GBP GBP
Balance 1st May
2017 261,558 21,785,295 701,675 (16,249,203) 6,499,325
Share issue 112,911 12,426,409 12,539,320
Expenses of issue (837,080) (837,080)
Loss for the
year (4,194,509) (4,194,509)
Share option
charge (66,106) (66,106)
Balance 30 April
2018 374,469 33,374,624 635,569 (20,443,712) 13,940,950
Share issue 10,143 1,206,998 1,217,141
Expenses of issue (83,057) (83,057)
Exercise of share
options 3,185 140,123 143,308
Loss for the
year (5,627,487) (5,627,487)
Share option
charge (254,007) (254,007)
Balance 30 April
2019 387,797 34,638,688 381,562 (26,071,199) 9,336,848
-------- ----------- ---------- ------------- ------------
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 April 2019
2019 2018
GBP GBP
Cash flows from operating activities
(Loss) before tax (6,714,010) (4,939,047)
Adjustments for:
Finance income (15,002) (2,753)
Depreciation 21,060 27,612
Share-based payment credit (254,007) (66,106)
----------- -----------
Cash flows from operations before changes
in working capital (6,961,959) (4,980,294)
(increase)/Decrease in amounts receivable (580,307) 4,499
Increase in amounts payable 509,317 164,211
----------- -----------
Cash used in operations (7,032,949) (4,811,584)
Tax credits received - 748,837
Net cash used in operating activities (7,032,949) (4,062,747)
Investing activities
Purchase of tangible fixed assets (2,664) (11,413)
Finance income 15,002 2,753
----------- -----------
Net cash generated from investing activities 12,338 (8,660)
----------- -----------
Financing activities
Proceeds from issue of share capital 1,217,141 12,539,320
Expenses of share issue (83,057) (837,080)
Exercise of share options 143,308 -
----------- -----------
Net cash generated from financing activities 1,277,392 11,702,240
----------- -----------
Net (decrease)/increase in cash and cash
equivalents (5,743,219) 7,630,833
Cash and cash equivalents at beginning of
the year 10,303,168 2,672,335
Cash and cash equivalents at end of the
year 4,559,949 10,303,168
----------- -----------
NOTES TO THE FINANCIAL INFORMATION
For the year ended 30 April 2019
1 BASIS OF PREPARATION
These financial results do not comprise statutory accounts for
the year ended 30 April 2019 within the meaning of Section 434 of
the Companies Act 2006. The financial information in this
announcement has been extracted from the audited financial
statements for the year ended 30 April 2019.
The financial statements have been prepared on the going concern
basis on the grounds that the directors have reviewed the funding
available and the group's cash flow forecast and are content that
sufficient resources are available to enable the group to continue
in operation for at least twelve months from the date of approval
of these financial statements.
The financial information has been prepared in accordance with
International Financial Reporting Standards ('IFRS'), as adopted by
the European Union, and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
The financial statements have been prepared under the historical
cost convention and in accordance with applicable accounting
standards.
2 OPERATING LOSS
2019 2018
GBP GBP
Operating Loss is stated after charging:
Depreciation on tangible fixed assets 21,060 27,612
Operating lease rentals 95,964 66,257
Research and development 4,151,950 2,855,264
Auditors' remuneration - fee payable for
audit of the company 16,000 8,250
Auditors' remuneration - fee payable for
audit of the subsidiary company 16,000 11,000
Auditors' remuneration for non-audit services - 1,500
Directors' remuneration 631,042 680,204
--------- ---------
3 TAXATION
Analysis of the tax credit
The tax credit on the loss on ordinary activities
for the year was as follows: 2019 2018
Current tax GBP GBP
UK corporation tax credits due on R&D expenditure 1,082,575 744,538
Adjustment to prior year 3,948 -
--------- -------
1,086,523 744,538
--------- -------
Factors affecting the tax charge
The tax assessed for the years is lower than the applicable rate
of corporation tax in the UK.
The difference is explained below:
2019 2018
GBP GBP
Loss on ordinary activities before tax (6,714,010) (4,939,047)
----------- -----------
Loss on ordinary activities multiplied by
the small company rate of tax in the UK
(19 %) (1,275,662) (938,419)
Effects of:
Disallowed expenditure 7,668 (12,276)
Timing differences (5,447) 2,462
Enhanced tax relief on R&D expenditure (801,788) (550,403)
Reduced tax relief for losses surrendered
for R&D tax credits 335,972 232,289
Prior year (under)/ over provision (3,948) -
Unrelieved losses carried forward 656,682 521,809
----------- -----------
Current tax (credit) (1,086,523) (744,538)
----------- -----------
The Group has tax losses to carry forward against future profits
of approximately GBP18,960,000 (2018: GBP15,504,000).
A deferred tax asset has not been recognised in respect of these
losses as the Group does not anticipate sufficient taxable profits
to arise in the foreseeable future to fully utilise them.
The estimated value of the deferred tax asset not recognised
measured at the prevailing rate of tax when the timing differences
are expected to reverse is GBP3,202,000 (2018: GBP2,625,000).
4 EARNINGS PER SHARE
Basic earnings per share
The earnings and weighted average number of ordinary shares used
in the calculation of basic earnings per share is as follows:
2019 2018
GBP GBP
Earnings used in calculation of basic
earnings per share (5,627,487) (4,194,509)
Number Number
Weighted average number of ordinary
shares of 0.1p each for the calculation
of basic earnings per share 386,965,910 312,726,405
Diluted earnings per share
As the Group is reporting a loss from continuing operations for
both years then, in accordance with IAS 33, the share options are
not considered dilutive because the exercise of the share options
would have the effect of reducing the loss per share.
The Company issued 10,142,838 shares on 9 May 2018 and Ichor
exercised 3,184,620 shares on 17 July 2018. At the year end the
issued share capital amounted to 387,796,556 ordinary shares.
5 DELIVERY OF ACCOUNTS
The audited statutory accounts in respect of the prior year
ended 30 April 2018 have been delivered to the Registrar of
Companies. The auditors issued an unqualified audit opinion which
did not contain any statement under section 498(2) or 498(3) of the
Companies Act 2006.
6 AVAILABILITY OF ACCOUNTS
This announcement is not being posted to shareholders. Copies of
this announcement can be downloaded from the Company's website:
www.scancell.co.uk together with copies of the Report and
Accounts.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EAKPNFSXNEFF
(END) Dow Jones Newswires
August 20, 2019 02:00 ET (06:00 GMT)
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