TIDMAGL
RNS Number : 4529F
Angle PLC
28 July 2016
For Immediate Release 28 July 2016
ANGLE plc
("ANGLE" or "the Company")
Preliminary Results for the year ended 30 April 2016
ESTABLISHED RESEARCH USE SALES AND PROGRESSED FIRST CLINICAL
APPLICATION IN OVARIAN CANCER
ANGLE plc (AIM: AGL OTCQX: ANPCY), the specialist medtech
company, today announces audited preliminary results for the year
ended 30 April 2016.
Operational Highlights
-- First sales of the Parsortix system reported in December
2015. Sales pipeline developing in the research use market
-- Analytical and clinical study programmes developed to progress FDA clearance for Parsortix
- planned initial FDA clearance in metastatic breast cancer
- three world-leading US cancer centres selected to perform
clinical validation work
-- Clinical study programmes developed and now recruiting
patients in the detection of ovarian cancer, the Company's first
clinical application:
- Europe: Medical University of Vienna, Charité Medical
University Berlin and Vivantes Network for Health GmbH
- United States: University of Rochester Medical Center Wilmot
Cancer Institute
- global market for this clinical application estimated to be
GBP300 million per annum
-- Growing body of published evidence from third party cancer centres - as at 30 April 2016
- 3 publications in peer-reviewed journals and 10 posters
presented at cancer conferences
-- Strengthened IP position provides protection until 2034.
Patents granted in Europe, Australia, Canada and China during the
period, building on United States IP coverage
Financial Highlights
-- Maiden revenues of GBP0.4 million (2015: GBPnil) from Parsortix
-- Loss from continuing operations of GBP5.1 million (2015:
GBP3.9 million) reflecting planned investment to advance and drive
adoption of Parsortix
-- Cash balance at 30 April 2016 of GBP3.8 million (30 April 2015: GBP8.4 million)
Post year end highlights
-- Cancer Research UK Manchester Institute selected Parsortix
for routine use in clinical trials:
- immediate incorporation of ANGLE's Parsortix system in 10
clinical trials
- 4 further clinical trials currently in planning
-- Clinical applications in metastatic breast and prostate cancer being assessed
- addressing estimated global markets of GBP1.0 billion and
GBP3.0 billion per annum
- follows successful pilot studies by University of Southern
California Norris Comprehensive Cancer Center and Barts Cancer
Institute
-- Financial position strengthened following successful
fundraising from major institutional investors raising GBP10.2
million (GBP9.6 million net of expenses)
Garth Selvey, Non-Executive Chairman of ANGLE plc,
commented:
"ANGLE is funded to execute our business plan with the immediate
priorities of building research use sales in leading institutions,
completing analytical and clinical studies to support FDA clearance
in the US, and completing clinical studies for our first clinical
application in ovarian cancer. The recent pilot study results in
breast cancer and prostate cancer represent breakthroughs that
offer major growth potential for the future. ANGLE is well
positioned to become a leading player in the emerging liquid biopsy
market, which is expected to revolutionise cancer care."
Details of webcast
Please see
http://www.angleplc.com/investor-information/investor-centre/ for
details.
For further information:
ANGLE plc 01483 685830
Andrew Newland, Chief Executive
Ian Griffiths, Finance Director
Cenkos Securities
Stephen Keys (Nominated adviser)
Russell Kerr, Oliver Baxendale
(Sales) 020 7397 8900
WG Partners
David Wilson
Claes Spång 020 3705 9330
FTI Consulting
Simon Conway, Mo Noonan,
Stephanie Cuthbert 020 3727 1000
Kimberly Ha (US) 001 212 850 5612
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 and
commercialisation strategies, the uncertainties related to
regulatory clearance and the acceptance of the Group's products by
customers.
CHAIRMAN'S STATEMENT
Introduction
We have made significant progress across the business during the
year. Having completed the transition to specialist medtech
company, ANGLE moved into the early commercialisation phase,
securing first sales for research use and developing its clinical
application for ovarian cancer.
We have made good progress with the analytical and clinical
studies to support FDA clearance and plans have been put in place
for ovarian cancer clinical studies in Europe and the United States
for the Company's first clinical application.
During the period, key opinion leaders demonstrated significant
performance capabilities of the Parsortix system in pilot studies
with breast and prostate cancer patients.
Overview of Financial Results
Revenue of GBP0.4 million (2015: GBPnil) came from first
commercial sales of the Parsortix system for research use. Planned
investment in studies to develop and validate the clinical
application and commercial use of Parsortix increased, resulting in
operating costs of GBP5.7 million (2015: GBP3.9 million). Thus the
resulting loss for the year from continuing operations
correspondingly increased to GBP5.1 million (2015: GBP3.9
million).
The cash balance was GBP3.8 million at 30 April 2016 (30 April
2015: GBP8.4 million). Post year end, the financial position was
strengthened following a successful placing of shares with major
institutional investors, which raised GBP10.2 million, gross
(GBP9.6 million net of expenses).
Far-reaching market potential
ANGLE's Parsortix system has widespread potential application
across all solid tumour types including, but not limited to,
bladder, brain, breast, colorectal, liver, lung, melanoma,
oesophageal, ovarian and other gynaecological, pancreatic and
prostate cancers. For each cancer type, there are multiple
potential clinical applications including the major categories
of:
-- population screening;
-- high risk diagnostic screening;
-- therapeutic decision-making including drug selection and companion diagnostics;
-- assessment of minimal residual disease to determine when treatment has been effective; and
-- post treatment monitoring (remission monitoring).
ANGLE's overall objective is for the Parsortix system to become
established as a platform of choice in the liquid biopsy space for
harvesting cancer cells from patient blood for analysis. The
Parsortix system could feed into existing analysis systems for
applications developed by numerous third parties in all cancers in
all categories, including next generation sequencing, PCR, FISH and
immunohistochemical staining.
In pursuit of this objective, ANGLE has established a tightly
focused strategy as follows:
1) Optimise the system and make it available for sale for
research use to identified leading research groups to (i) generate
establishment revenues and (ii) increase the number of leading
research groups utilising the system and demonstrating its
capabilities in different areas at their own cost.
2) Pursue FDA clearance of the system, the de facto global
standard, with the aim of being the first system ever cleared for
marketing by the FDA for harvesting cancer cells (CTCs) from
patient blood for subsequent analysis. This would provide major
competitive differentiation as well as demonstrate the system's
capabilities.
3) Secure Level 1 evidence of system performance through large,
rigorously controlled clinical studies - both sensitivity (avoiding
false negatives) and specificity (avoiding false positives) - in
specific clinical applications. Success in these clinical studies
not only has the potential to open up new, large markets for
clinical sales in that particular application but also to catalyse
third parties to develop further clinical applications themselves
using Parsortix.
The selection of the first clinical application in ovarian
cancer (differentiation of benign vs. malignant pelvic masses prior
to surgery) has been made based on a set of key criteria, which
include:
-- access to current key opinion leader in the disease area (for
expertise, relationships, patients) and successful pilot data;
-- "short" study end point;
-- differentiation from ctDNA , antibody-based CTC assays, and other tests;
-- existing standard of care poor with significant problems (high unmet medical need);
-- existing test or current standard of care available for benchmark comparison;
-- in the US, an existing CPT code (Current Procedural
Terminology used to report medical procedures and services) to
assist with reimbursement; and
-- other considerations including barriers to market entry such
as established clinical practice, cost and vested interests.
The ovarian cancer application addresses a clearly identified
market opportunity estimated to be worth over GBP300 million per
annum in potential Parsortix sales.
Following successful pilot studies undertaken by key opinion
leaders, University of Southern California Norris Comprehensive
Cancer Center and Barts Cancer Institute, in breast and prostate
cancers respectively, ANGLE is now evaluating whether, and if so,
how, clinical applications could be developed using Parsortix for
breast and prostate cancers.
Due to the prevalence of these cancer types and the need for
repeat testing, ANGLE estimates the market opportunities in breast
and prostate to be worth over GBP1.0 billion and GBP3.0 billion per
annum in potential Parsortix sales respectively for these clinical
applications.
Research use sales
Having successfully completed an intensive phase of system
optimisation and successful evaluations with multiple third party
cancer centres, ANGLE initiated sales of the Parsortix system for
research use with first sales announced in the second half of the
financial year (December 2015). The sales pipeline is developing
with selected leading institutions, addressing a research use
market estimated to be GBP250 million per annum.
Sales of both Parsortix instruments and cassettes (a one-time
use consumable part of the system) have been made to multiple
customers. A number of key achievements have already been made
including:
-- sales to
- existing key opinion leaders transitioning to paying
customers
- leading cancer research centres
- big pharma and immunotherapy companies
-- repeat customer and multiple instrument orders
-- first customer publishing results following their purchase of the system
We expect further revenue growth to come from key opinion leader
(KOL) referrals and from our product being specified in the cancer
drug trials in which the KOLs are involved.
The contract signed subsequent to the year-end with Cancer
Research UK Manchester Institute for routine use of Parsortix in
their clinical trials is important in establishing the credibility
of the system. This contract has led to immediate revenue
generation, as Parsortix has already been incorporated into 10
clinical trials to date and is to be adopted in an additional 4
trials currently in their planning stages. Cancer Research UK
Manchester Institute has already processed over 700 clinical
samples and there is significant potential to expand this over time
as the partner hospital, the Christie, is one of the largest
single-site cancer hospitals in Europe and currently has 620 active
clinical trials in process.
We are delighted to have Cancer Research UK Manchester Institute
as a customer and believe this contract helps validate our
credentials and provides a strong reference for adoption by other
potential customers running pharmaceutical drug trials.
The installed base, including those at ANGLE labs, key opinion
leaders, customers and prospective customers, is now over 90
Parsortix systems, with over 17,000 blood samples processed with
the system. Each new customer brings additional instrument revenue
and increases the installed base, driving ongoing increased
revenues from consumables and service contracts. Furthermore, each
new research use customer is undertaking investigations into new
uses of the system, which they aim to publish, thereby creating
increased awareness and consequent market demand for the Parsortix
system.
Regulatory authorisation
Regulatory authorisation is a requirement before the Parsortix
system can be sold for use in clinical markets (for treatment of
patients). ANGLE already has a CE Mark for the indicated clinical
use of the Parsortix system in Europe as a platform for harvesting
cancer cells for analysis and major efforts are being focused on
securing similar FDA clearance in the United States. FDA clearance
would not only allow sale of the product for clinical use in the
United States but would also be a de-facto gold standard
demonstrating performance of the system and influencing system
adoption worldwide.
It is widely accepted that clinical use of CTCs (cancer cells
circulating in patient blood) to detect cancer, select therapies,
and monitor patients in remission has the potential to make a
profound impact on delivering personalised cancer care thereby
benefitting patients and reducing overall healthcare costs.
Currently, there are no products that have been cleared by the FDA
for the harvest of cancer cells from patient blood for subsequent
analysis. ANGLE's aim is for the Parsortix system to be the first
such product.
ANGLE has been in dialogue with the FDA for over two years, and
a great deal of work has been completed on the development of
robust analytical and clinical (patient) studies with the aim of
securing FDA clearance for the Parsortix system for the harvest of
circulating tumour cells from patient blood for subsequent
analysis.
While FDA clearance of the Parsortix system is being pursued
first for metastatic breast cancer, the intention is to
subsequently expand that initial clearance to multiple other cancer
types including ovarian and prostate. Each new cancer application
will require additional patient studies (as planned with each
clinical application) but can build on the original approved
analytical validation of the system and does not need to repeat all
this work.
Three world-leading US cancer centres have been selected to
complete the necessary clinical validation work (patient studies)
for metastatic breast cancer. These centres will help to provide
the clinical evidence needed to secure the FDA clearance in
metastatic breast cancer and crucially, they may be major future
customers and opinion leaders in securing uptake of the Parsortix
system for clinical use once FDA clearance has been secured. The
additional clinical studies require 196 metastatic breast cancer
patients to be studied alongside 196 healthy volunteers of similar
age and demographics to be evaluated with the Parsortix system.
While the speed of patient accrual is outside of the Company's
control, the aim is to complete the necessary analytical and
clinical studies as quickly as possible so that the results can be
submitted to the FDA in calendar year 2017. The timing of eventual
FDA clearance is dependent on the Agency's assessment of the study
results, both analytical and clinical.
Most competitors are pursuing a laboratory service approach to
their business model. In contrast, as the Parsortix system is
patent-protected, ANGLE has a product-based strategy with the sale
of instruments and consumables to customers for use in their own
laboratory. This product-based strategy meets the needs of many
customers and commercially provides ANGLE with a rapidly scalable
business model not available to service-based businesses, which are
intrinsically limited by the size of their laboratories, staff and
overheads. The FDA clearance is a key element to drive this
product-based strategy, particularly in the United States, and the
Directors believe that, once obtained, FDA clearance will provide
ANGLE with a strong competitive advantage.
Ovarian cancer clinical application: triaging abnormal pelvic
mass
In September 2015, the Medical University of Vienna published
results from a pilot study demonstrating the ability to detect
ovarian cancer using cells harvested by the Parsortix system. ANGLE
is now working with the Medical University of Vienna and other
leading cancer centres to demonstrate, through prospective clinical
studies, the capability to use the system to triage patients having
surgery for abnormal pelvic mass into those with low and high risk
of ovarian cancer. The goal is to discriminate benign
(non-cancerous) from malignant (cancerous) pelvic masses, enabling
patients to receive appropriately targeted treatment. ANGLE
estimates that the addressable global market for ovarian cancer,
available for Parsortix sales, would be in excess of GBP300 million
per annum.
During the year, ANGLE completed the complex and intensive
process required to initiate the ovarian cancer clinical studies.
This process included:
-- optimising the system protocols for the application;
-- developing and approving the study plans and the data
collection and study documentation tools;
-- obtaining ethics approval and contracting with leading cancer centres; and
-- designing and delivering all the necessary forms, consumables
and training required for the clinical studies.
As announced this month, two clinical studies have been
initiated for recruitment of women scheduled for surgery for
evaluation of a pelvic mass. A blood sample is taken prior to
surgery and separated on the Parsortix system to harvest any
circulating tumour cells that may be present. Gene expression of
the cells is then determined and compared with the actual status of
the tissue removed by surgery which is analysed after the operation
by a pathologist as part of standard care. The comparison of the
combined Parsortix and RNA marker analysis results with the
histopathological diagnosis will enable an evaluation of the
sensitivity (ability to detect malignant conditions) and
specificity (ability to detect benign conditions) of the assay.
Existing blood tests for ovarian cancer have very poor
specificity, with nearly half of the benign patients being
incorrectly diagnosed as malignant. In contrast, Parsortix has so
far performed at 100% specificity for ovarian cancer. As it works
with live cancer cells rather than general markers of disease, it
offers the potential for high specificity avoiding the problem of
false positives that affects all existing techniques.
A European study of 200 patients is currently taking place at
the Medical University of Vienna, the Charité Medical University
Berlin and the two largest hospitals of the Vivantes Network for
Health GmbH in Berlin. This two part study includes a "training
study" to be done on the first half of the patients enrolled into
the study for determination of the optimal combination of RNA
markers for detection of cancer cells captured by Parsortix, and a
"verification study" to analyse the performance of the selected
combination of markers in the second half of the patients enrolled
into the study. Whilst the timing is dependent on a number of
factors including the speed of patient recruitment and enrolment at
the trial centres, we anticipate being able to report results by
calendar year end.
Once the European study is complete, European hospitals with
accredited laboratories will be able to design a laboratory
developed test based on the RNA markers identified, thus enabling
ANGLE to start generating revenue from clinical sales. ANGLE will
then seek to undertake a European "validation study" to validate
the clinical utility of the offering of Parsortix with the
downstream RNA analysis. The successful validation will allow ANGLE
to fulfil the In Vitro Diagnostic Directive (CE Marking)
requirements for the specific clinical application, thereby
allowing sale of the ovarian clinical application to all European
hospitals without the requirement for a laboratory developed
test.
A separate United States study of approximately 200 patients is
taking place at the University of Rochester Medical Center Wilmot
Cancer Institute. This study is similar in design to the European
ovarian study and is expected to be completed in the first half of
calendar 2017. It is intended to provide additional patient data in
the United States market, which will be important for subsequent
FDA clearance of the ovarian clinical application described. It is
expected that a further multi-site United States "validation study"
will be needed to secure FDA clearance for the ovarian
application.
Other potential clinical applications
Following successful pilot studies, ANGLE is assessing the
potential to develop additional clinical applications in metastatic
breast cancer and prostate cancer.
Breast cancer: blood test alternative to invasive metastatic
biopsy
During the year, the University of Southern California (USC)
Norris Comprehensive Cancer Center performed pilot study work
demonstrating the potential for the use of Parsortix as a liquid
biopsy for metastatic breast cancer. USC undertook the first head
to head comparison of the results of the molecular evaluation of
invasive metastatic biopsy tissue with a similar evaluation of a
Parsortix liquid biopsy.
Data was presented at this year's American Association for
Cancer Research (AACR) Annual Meeting (2016), showing a correlation
in metastatic breast cancer patients between the molecular
signatures of CTCs (circulating tumour cells) harvested from a
simple blood test using Parsortix and tissue obtained from invasive
biopsy of a secondary cancer site.
Prostate cancer: blood test alternative to prostate biopsy
During the year, Barts Cancer Institute's work with the
Parsortix system was presented at the 10th International Symposium
on Minimal Residual Cancer (ISMRC): Liquid Biopsy in Cancer
Diagnostics and Treatment, held in Hamburg.
The Barts patient data suggests that the Parsortix system has
the potential to be used both to detect cancer and to assess its
aggressiveness. This would mean that men with low level disease
could avoid unnecessary and potentially harmful solid biopsy and
surgical intervention, instead having "active surveillance",
whereas men with an aggressive form of disease could be
fast-tracked for further investigation and treatment.
A simple blood test to assess whether a solid prostate biopsy is
warranted would improve patient care as well as reduce healthcare
costs.
Growing body of published evidence
The Parsortix system is now being adopted widely amongst leading
researchers in the field, and as a result there is a growing body
of published evidence from third party cancer centres in support of
the Parsortix system.
As of 30 April 2016, there were 3 publications in peer-reviewed
journals (30 April 2015: nil) and 10 posters presented at
international cancer conferences (30 April 2015: 3). During the
year, there were several other posters presented, which have not
yet been made available publicly, as they are being developed for
peer-reviewed publications.
The rate of publication of third party evidence is accelerating
as research use customers publish their results. Peer reviewed
published scientific data and Level 1 clinical evidence are
fundamental to the Company's overall strategy aimed at Parsortix
being routinely adopted as the system of choice for the harvesting
of cancer cells from patient blood for analysis.
Intellectual property further strengthened
Intellectual property protecting the Parsortix system was
further strengthened during the year with patents being granted in
Europe, Australia, Canada and China, increasing the patent
protection already in place in the United States. These extended
the breadth and duration of patent coverage for the Parsortix
system out to 2034.
The protected intellectual property position enables the Company
to sell the Parsortix system as a product, with an instrument and
consumable. This will allow for revenue generation by the end users
once high level clinical evidence is in place and reimbursement has
been established. This is an option not available to most other
participants in the liquid biopsy market, which are limited to
service-based laboratory offerings necessitating the hospital to
send blood outside of their facility for analysis.
This patented product based approach to the business with third
party manufacturers gives ANGLE a scalable business model which
meets the needs of customers wishing to provide in-house patient
testing.
Outlook
ANGLE is funded to execute our business plan with the immediate
priorities of building research use sales in leading institutions,
completing analytical and clinical studies to support FDA clearance
in the US, and completing clinical studies for our first clinical
application in ovarian cancer. The recent pilot study results in
breast cancer and prostate cancer represent breakthroughs that
offer major growth potential for the future. ANGLE is well
positioned to become a leading player in the emerging liquid biopsy
market, which is expected to revolutionise cancer care.
Garth Selvey
Chairman
27 July 2016
ANGLE PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 APRIL 2016
2016 2015
Note GBP'000 GBP'000
Revenue 361 -
Cost of sales (107) -
-------- --------
Gross profit 254 -
Operating costs (5,703) (3,878)
-------- --------
Operating profit/(loss) from continuing operations (5,449) (3,878)
Net finance income/(costs) 22 9
-------- --------
Profit/(loss) before tax from continuing operations (5,427) (3,869)
Tax (charge)/credit 5 309 -
-------- --------
Profit/(loss) for the year from continuing operations (5,118) (3,869)
Profit/(loss) from discontinued operations 32 (18)
-------- --------
Profit/(loss) for the year (5,086) (3,887)
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations (7) 92
-------- --------
Other comprehensive income/(loss) (7) 92
Total comprehensive income/(loss) for the year (5,093) (3,795)
======== ========
Profit/(loss) for the year attributable to:
Owners of the parent
From continuing operations (4,924) (3,576)
From discontinued operations 31 (18)
Non-controlling interests
From continuing operations (194) (293)
From discontinued operations 1 -
Profit/(loss) for the year (5,086) (3,887)
======== ========
Total comprehensive income/(loss) for the year attributable to:
Owners of the parent
From continuing operations (4,978) (3,421)
From discontinued operations 31 (18)
Non-controlling interests
From continuing operations (147) (356)
From discontinued operations 1 -
Total comprehensive income/(loss) for the year (5,093) (3,795)
======== ========
Earnings/(loss) per share
Basic and Diluted (pence per share)
From continuing operations (8.69) (8.12)
From discontinued operations 0.05 (0.04)
From continuing and discontinued operations 6 (8.64) (8.16)
ANGLE PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2016
Note 2016 2015
GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 455 423
Intangible assets 7 1,346 1,149
----------- -----------
Total non-current assets 1,801 1,572
----------- -----------
Current assets
Inventories 376 197
Trade and other receivables 8 489 1,008
Taxation 309 -
Cash and cash equivalents 3,764 8,443
----------- -----------
Total current assets 4,938 9,648
----------- -----------
Total assets 6,739 11,220
=========== ===========
EQUITY AND LIABILITIES
Equity
Share capital 9 5,898 5,897
Share premium 25,299 25,299
Share-based payments reserve 629 432
Other reserve 2,553 2,553
Translation reserve (21) 33
Retained earnings (28,141) (23,260)
ESOT shares (102) (102)
----------- -----------
Equity attributable to owners of the parent 6,115 10,852
----------- -----------
Non-controlling interests (880) (763)
Total equity 5,235 10,089
----------- -----------
Liabilities
Current liabilities
Trade and other payables 1,504 1,131
----------- -----------
Total current liabilities 1,504 1,131
----------- -----------
Total liabilities 1,504 1,131
----------- -----------
Total equity and liabilities 6,739 11,220
=========== ===========
ANGLE PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 APRIL 2016
2016 2015
GBP'000 GBP'000
Operating activities
Profit/(loss) before tax from continuing
operations (5,427) (3,869)
Adjustments for:
Depreciation of property, plant and
equipment 198 111
(Profit)/loss on disposal of property,
plant and equipment - 1
Amortisation and impairment of intangible
assets 187 204
Exchange differences (65) (41)
Net finance (income)/costs (22) (9)
Share-based payments 238 111
---------- ----------
Operating cash flows before movements
in working capital: (4,891) (3,492)
(Increase)/decrease in inventories (238) (191)
(Increase)/decrease in trade and other
receivables (107) (191)
Increase/(decrease) in trade and other
payables 474 452
---------- ----------
Net cash from/(used in) operating activities (4,762) (3,422)
Investing activities
Purchase of property, plant and equipment (186) (325)
Purchase of intangible assets (332) (105)
Interest received 21 11
---------- ----------
Net cash from/(used in) investing activities (497) (419)
Financing activities
Net proceeds from issue of share capital 1 8,257
---------- ----------
Net cash from/(used in) financing activities 1 8,257
Net increase/(decrease) in cash and
cash equivalents from continuing operations (5,258) 4,416
Discontinued operations
Net cash from/(used in) operating activities (34) 118
Net cash from/(used in) investing activities 611 8
---------- ----------
Net increase/(decrease) in cash and
cash equivalents from discontinued operations 577 126
Net increase/(decrease) in cash and
cash equivalents (4,681) 4,542
Cash and cash equivalents at start of
year 8,443 3,898
Effect of exchange rate fluctuations 2 3
---------- ----------
Cash and cash equivalents at end of
year 3,764 8,443
========== ==========
ANGLE PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 APRIL 2016
----------------------------------------------- Equity attributable to owners of the parent
-----------------------------------------------
Share-based Total Non-
Share Share payments Other Translation Retained ESOT Shareholders' controlling Total
capital premium reserve reserve reserve earnings shares equity interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 May 2014 4,524 18,414 432 2,553 (122) (19,777) (102) 5,922 (407) 5,515
For the year to
30 April 2015
------------------ ----------- ----------- ------------ ----------- ------------ ------------ ----------- -------------- ------------ -----------
Consolidated
profit/(loss) (3,594) (3,594) (293) (3,887)
Other
comprehensive
income/(loss)
Exchange
differences
on
translating
foreign
operations 155 155 (63) 92
------------------ ----------- ----------- ------------ ----------- ------------ ------------ ----------- -------------- ------------ -----------
Total
comprehensive
income/(loss) 155 (3,594) (3,439) (356) (3,795)
Issue of shares 1,373 6,885 8,258 8,258
Share-based
payments 111 111 111
Released on
forfeiture (1) 1 - -
Released on
exercise (16) 16 - -
Impairment of
IP in
investment (94) 94 - -
___ ___ ___
___ ______ _______ ___ ______ ___ ______ ___ ______ ________ ___ ______ ___ _______ __ _______ _______
At 30 April 2015 5,897 25,299 432 2,553 33 (23,260) (102) 10,852 (763) 10,089
For the year to
30 April 2016
------------------ ----------- ----------- ------------ ----------- ------------ ------------ ----------- -------------- ------------ -----------
Consolidated
profit/(loss) (4,893) (4,893) (193) (5,086)
Other
comprehensive
income/(loss)
Exchange
differences
on
translating
foreign
operations (54) (54) 47 (7)
------------------ ----------- ----------- ------------ ----------- ------------ ------------ ----------- -------------- ------------ -----------
Total
comprehensive
income/(loss) (54) (4,893) (4,947) (146) (5,093)
Issue of shares 1 - 1 1
Share-based
payments 238 238 238
Released on
deemed
disposal (41) 41 - -
Deemed disposal
of controlling
interest in
investment (29) (29) 29 -
___ ___ ___
___ ______ _______ ___ ______ ___ ______ ___ ______ ________ ___ ______ ___ _______ ___ ______ _______
At 30 April 2016 5,898 25,299 629 2,553 (21) (28,141) (102) 6,115 (880) 5,235
========== ========== ========== ========== ========= =========== ========== ========== ========== ==========
ANGLE PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEARED 30 APRIL 2016
1 Preliminary announcement
The preliminary announcement set out above does not constitute
ANGLE plc's statutory Financial Statements for the years ended 30
April 2016 or 2015 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 year ended 30 April 2016 and 2015 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 30 April 2016
are unchanged from those used for the statutory Financial
Statements for the year ended 30 April 2015, except as referred to
in Note 2. The 2016 statutory accounts 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 IFRS, this
announcement does not itself contain sufficient information to
comply with IFRS.
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.
A Cost of sales accounting policy has been added and a number of
other accounting policies have been slightly amended and updated
for readability.
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. Note 10 includes
information on the fundraise of GBP9.6m net of expenses completed
after the reporting date.
The Directors have prepared and reviewed the financial
projections for the 12 month period from the date of signing of
these Financial Statements. Based on the level of existing cash and
the projected income and expenditure (the timing of some of which
is at the Group's discretion), 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 period. Although these estimates, assumptions and
judgements are based on management's best knowledge of the amounts,
events or actions, and are believed to be reasonable, actual
results ultimately may differ from those estimates.
The estimates, assumptions and judgements that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities are described below.
Valuation, amortisation and impairment of intangible assets
(Note 7)
IAS 38 Intangible Assets contains specific criteria that if met
mean development expenditure must be capitalised as an internally
generated intangible asset. Judgements are required in both
assessing whether the criteria are met and then in applying the
rules. Intangible assets are amortised over their useful lives.
Useful lives are assessed by reference to observable data (e.g.
remaining patent life) and taking into consideration specific
product (e.g. product life cycle) and market characteristics (e.g.
estimates of the period that the assets will generate revenue).
Each of these factors is periodically reviewed for appropriateness.
Changes to estimates in useful lives may result in significant
variations in the amortisation charge.
The Group is required to review, at least annually, whether
there are indications (events or changes in circumstances) that
intangible assets have suffered impairment and that the carrying
amount may exceed the recoverable amount. If there are indications
of impairment then an impairment review is undertaken. The
recoverable amount is the higher of the asset's fair value less
costs to sell and its value-in-use. The value-in-use method
requires the estimation of future cash flows and the selection of a
suitable discount rate in order to calculate the present value of
these cash flows. When reviewing intangible assets for impairment
the Group has had to make various assumptions and estimates of
individual components and their potential value and potential
impairment impact. The Group considers that for each of these
variables there is a range of reasonably possible alternative
values, which results in a range of fair value estimates. None of
these estimates of fair value is considered more appropriate or
relevant than any other and therefore determining a fair value
requires considerable judgement.
Share-based payments
In calculating the fair value of equity-settled share-based
payments the Group uses an options pricing model. 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 input
parameters include, among others, expected volatility, expected
life of the options taking into account exercise restrictions and
behavioural considerations of employees, the number of options
expected to vest and liquidity discounts.
Research and development tax credit (Note 5)
Management makes its best estimate of qualifying R&D
expenditure to calculate the R&D tax credit. The interpretation
of qualifying expenditure requires judgement.
Deferred tax assets
The Group has unused tax losses. Management judgement is
required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and level of future
taxable profits together with an assessment of the effect of future
tax planning strategies. Changes in these judgements and
assumptions could have a material impact on the Group's reported
tax charge.
5 Tax
The Group undertakes research and development activities. In the
UK these activities qualify for tax relief resulting in tax
credits.
6 Earnings/(loss) per share
The basic and diluted earnings/(loss) per share is calculated on
the loss for the year from continuing and discontinued operations
of GBP5.1 million (2015: GBP3.9 million).
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 excludes 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 period. Due to the
losses in 2016 and 2015, share options are non-dilutive for those
years 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 a
weighted average of 58,863,713 ordinary 10p shares (2015:
47,625,033).
7 Intangible assets
Intellectual Computer Product Total
property software development
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 May 2014 206 11 1,045 1,262
Additions 66 1 37 104
Exchange movements 14 - 109 123
At 30 April 2015 286 12 1,191 1,489
Additions 241 1 90 332
Disposals (94) (7) - (101)
Exchange movements 9 - 58 67
At 30 April 2016 442 6 1,339 1,787
============= ========= ============ ========
Amortisation and impairment
At 1 May 2014 - 9 111 120
Charge for the year - 1 109 110
Impairment 94 - - 94
Exchange movements - - 16 16
At 30 April 2015 94 10 236 340
Charge for the year 2 1 124 127
Disposals (94) (7) - (101)
Impairment 60 - - 60
Exchange movements - - 15 15
At 30 April 2016 62 4 375 441
============= ========= ============ ========
Net book value
At 30 April 2016 380 2 964 1,346
============= ========= ============ ========
At 30 April 2015 192 2 955 1,149
============= ========= ============ ========
The carrying value of intangible assets is reviewed for
indications of impairment whenever events or changes in
circumstances indicate that the carrying value may exceed the
recoverable amount. The recoverable amount is the higher of the
asset's fair value less costs to sell and its "value-in-use". The
key assumptions to assess value-in-use are the estimated useful
economic life, future revenues, cash flows and the discount rate to
determine the net present value of these cash flows. Where
value-in-use exceeds the carrying value then no impairment is made.
Where value-in-use is less than the carrying value then an
impairment charge is made.
During the period the Group decided to abandon a particular
patent application which resulted in an impairment charge.
Amortisation and impairment charges are charged to operating
costs in the Consolidated Statement of Comprehensive Income.
"Product development" relates to internally generated assets
that were capitalised in accordance with IAS 38 Intangible Assets.
Capitalised product development costs are directly attributable
costs comprising cost of materials, specialist contractor costs,
labour and overheads. Product development costs are amortised over
their estimated useful lives commencing when the related new
product is in commercial production. Development costs not meeting
the IAS 38 criteria for capitalisation continue to be expensed
through the Statement of Comprehensive Income as incurred.
8 Trade and other receivables
2016 2015
GBP'000 GBP'000
Current assets:
Trade receivables 104 4
Other receivables - investments - 636
Other receivables 132 124
Prepayments and accrued income 253 244
-------- --------
489 1,008
======== ========
"Other receivables - investments" related to the Group's
investment in Geomerics (computer games middleware and computer
graphics) which was sold in December 2013. The deal included a
deferred retention payment of GBP0.7 million which was received in
full in December 2015. This Other receivable was designated at fair
value and had been discounted for the time value of money.
9 Share capital
The Company has one class of ordinary shares which carry no
right to fixed income and at 30 April 2016 had 58,978,338 ordinary
shares of 10p each allotted, called up and fully paid (2015:
58,974,338).
The Company issued 4,000 new ordinary shares with a nominal
value of GBP0.10 at an exercise price of GBP0.2575 per share as a
result of the exercise of share options by a former employee.
Shares were admitted to trading on AIM in September 2015.
10 Post reporting date events
The Company successfully completed a fundraise of GBP10.2
million (GBP9.6 million net of expenses). The Company issued
15,815,436 new ordinary shares with a nominal value of GBP0.10 at
an issue price of GBP0.645 per share in a placing. Shares were
admitted to trading on aim in May 2016.
11 Shareholder communications
Copies of this announcement are posted on the Company's website
www.ANGLEplc.com.
The Annual General Meeting of the Company will be held at 2:00pm
on Tuesday 4 October 2015 at the Surrey Technology Centre, 40 Occam
Road, the Surrey Research Park, Guildford, GU2 7YG. Notice of the
meeting will be enclosed with the audited Statutory Financial
Statements.
The audited Statutory Financial Statements for the year ended 30
April 2016 are expected to be distributed to shareholders by 9
September 2016 and will subsequently be available on the Company's
website or from the registered office, 3 Frederick Sanger Road,
Surrey Research Park, Guildford, GU2 7YD.
This preliminary announcement was approved by the Board on 27
July 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGURWMUPQGRM
(END) Dow Jones Newswires
July 28, 2016 02:01 ET (06:01 GMT)
Angle (LSE:AGL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Angle (LSE:AGL)
Historical Stock Chart
From Apr 2023 to Apr 2024
