TIDMAGL
RNS Number : 2237M
Angle PLC
27 July 2017
For Immediate Release 27 July 2017
ANGLE plc
("ANGLE" or "the Company")
Preliminary Results for the year ended 30 April 2017
FIRST LARGE SCALE PATIENT STUDIES WITH PARSORTIX COMPLETED
CLINICALLY SIGNIFICANT RESULTS IN OVARIAN CANCER
ANNOUNCED POST PERIOD
ANGLE plc (AIM: AGL OTCQX: ANPCY), a world leading liquid biopsy
company, today announces unaudited results for the year ended 30
April 2017.
Operational Highlights
-- Successfully completed US and European studies evaluating
over 400 patients for detection of ovarian cancer in women with a
high risk pelvic mass
- Reported positive results post period end: preliminary
analyses indicated the potential for a Parsortix-based test to
significantly out-perform current standard of care in
discriminating between benign and malignant pelvic masses
-- University of Texas MD Anderson Cancer Center selected to
lead 400 subject study focused in metastatic breast cancer (MBC) to
support FDA clearance of Parsortix system; results expected in H1
2018
-- Barts Cancer Institute's prostate cancer studies showed rare
cells harvested using the Parsortix system were linked to cancer
metastasis and patient survival
-- Increase in research use of Parsortix system by a wide range of leading cancer centres:
- Installed base of over 145 Parsortix instruments deployed
worldwide (2016: 85) with over 30,000 blood separations completed
(2016: 15,000)
- Cancer Research UK Manchester Institute selected Parsortix for
routine use in clinical studies
- Parsortix accepted into the European CANCER ID programme
-- Growing body of published evidence from
internationally-recognised cancer centres help to validate the
potential for Parsortix as a leading liquid biopsy solution
Financial Highlights
-- Revenues increased to GBP0.5 million (2016: GBP0.4 million)
-- Loss for the year GBP6.4 million (2016: loss GBP5.1 million)
reflecting planned investment to advance clinical evidence through
patient studies, FDA regulatory clearance and investment in
marketing to drive adoption of Parsortix in research
institutions
-- Successful fundraising from major institutional investors
raising GBP10.2 million (GBP9.6 million net of expenses)
-- Cash balance at 30 April 2017 of GBP5.5 million (30 April 2016: GBP3.8 million)
Garth Selvey, Non-Executive Chairman of ANGLE plc,
commented:
"ANGLE has made significant progress in its strategy towards
commercialisation of Parsortix. Importantly, it recently announced
positive results from two independent studies (c. 200 patients
each) that highlighted the potential of the Parsortix system to
facilitate the detection of ovarian cancer pre-surgery in women
with high risk pelvic masses. Following optimisation of the
Parsortix-based pelvic mass assay, the Company will validate the
assay in a further, appropriately powered clinical validation
study, with the goal of achieving regulatory clearance and
subsequent commercialisation of this assay in Europe and the
US.
Work on the pivotal clinical study in metastatic breast cancer
is ongoing, with study results expected in H1 2018. The primary
goal is to generate data that will support an FDA submission for
use of the Parsortix system in harvesting cancer cells from
metastatic breast cancer patients for subsequent evaluation.
With its differentiated competitive position, the growing body
of clinical evidence and increasing research use, ANGLE is
consolidating its position as a leading player in liquid biopsy; a
potential multi-billion dollar market that 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 343434
Andrew Newland, Chief Executive
Ian Griffiths, Finance Director
Cenkos Securities
Stephen Keys (Nominated adviser),
Steve Cox
Russell Kerr (Sales) 020 7397 8900
WG Partners
David Wilson
Claes SpÄng 020 3705 9330
FTI Consulting
Simon Conway, Mo Noonan,
Stephanie Cuthbert 020 3727 1000
Kimberley Ha (US) 001 212 850 5612
For Frequently Used Terms, please see the Company's website on
http://www.angleplc.com/the-parsortix-system/glossary/
This announcement contains inside information.
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
The Company recently successfully completed its first two large
scale studies, focused in the area of ovarian cancer. This has
enabled ANGLE to move into the next significant stage of
Parsortix's commercial development with the optimisation and
validation of this first clinical application of the system.
Further progress has also been made with the metastatic breast
cancer (MBC) studies, and MD Anderson has agreed to lead the 400
patient pivotal clinical study. The data generated will be used to
support submission for FDA clearance for the proposed MBC intended
use. Good progress has also been made on the analytical studies and
headline results of both the analytical and clinical studies are
expected in H1 2018.
Our key opinion leaders and research use customers are
continuing to develop important new findings through their pilot
studies, including areas of research that ANGLE has not itself
previously considered, further strengthening the body of supportive
evidence in new areas of cancer diagnosis and treatment.
Overview of Financial Results
Revenue of GBP0.5 million (2016: GBP0.4 million) came from 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 GBP7.8 million (2016: GBP5.7 million). Thus, the loss for the
year correspondingly increased to GBP6.4 million (2016: GBP5.1
million).
The cash balance was GBP5.5 million at 30 April 2017 (30 April
2016: GBP3.8 million). The financial position was strengthened
during the year with a successful placing of shares with major
institutional investors, which raised GBP10.2 million gross (GBP9.6
million net of expenses).
Ovarian cancer clinical application: triaging abnormal pelvic
mass
During the year, ANGLE undertook two investigational clinical
studies in ovarian cancer, each involving the enrolment of c. 200
patients, conducted at leading cancer centres. The European study
(ANG-001) was led by Dr Robert Zeillinger at the Medical University
of Vienna and the US study (ANG-003) was led by Dr Richard Moore at
the University of Rochester Medical Center, Wilmot Cancer Institute
(New York State). These two studies were designed to evaluate the
molecular interrogation of cells harvested from blood using the
Parsortix system to detect ovarian cancer in women having surgery
for an abnormal pelvic mass. The molecular interrogation of the
cells harvested from the blood by the Parsortix system was
undertaken with a variety of techniques, including those already
widely available in hospital laboratories.
The results of these studies demonstrated the potential for a
Parsortix based blood test to discriminate between benign and
malignant pelvic masses with a high degree of accuracy, which would
significantly out-perform current standard of care and address a
significant unmet medical need.
An abnormal pelvic mass is a common condition in women,
particularly older women. In the United States, around 750,000
women per annum are diagnosed and of these some 200,000 women per
annum will have surgery on their pelvic mass. It is estimated that
5 to 10% of all women in developed countries will have surgery for
an abnormal pelvic mass at some time in their lives. Most of these
women, approximately 80 to 90%, will have a benign tumour, which
could easily be treated by a general surgeon in the local hospital.
However, approximately 10 to 20% will have a malignant tumour.
Surgery for an ovarian cancer is highly complex, with the goal of
achieving maximal tumour removal, and it should be performed by a
specialist cancer surgeon to achieve optimal outcomes. A
Parsortix-based test has the potential to allow women with a benign
pelvic mass to be treated cost effectively in their local hospital,
whilst ensuring patients whose masses are malignant are treated by
a cancer specialist.
The preliminary results from these two studies indicate that the
highest degree of discrimination can be achieved when combining
selected gene information analysed from the Parsortix harvest with
serum tumour markers in a multivariate algorithm. Optimisation of
this proprietary algorithm is ongoing. Once finalised, it will be
validated in an appropriately powered validation study. It is
expected that it will be possible to apply for patent protection on
the details of the algorithm, further strengthening ANGLE's
competitive position.
The new test incorporates evaluation of the Parsortix harvested
cells using an RNA-based assay to provide molecular information
from nucleic acids obtained from intact cells, something which
cannot be undertaken with ctDNA based techniques.
These successful results allow ANGLE to move forward into the
next phase of product development, with the goal of commercialising
a blood test addressing an estimated market size of GBP300 million
per annum. Firstly, additional work will be undertaken over an
estimated six month period to optimise the algorithm for
maximisation of performance. Some critical aspects of the
downstream analysis techniques have been identified that ANGLE
believes can be enhanced to improve the performance of the assay
and provide an even stronger competitive advantage. The performance
of the optimised test will be confirmed utilising a second blood
sample that has been banked from each of the ANG-003 study patients
and further patient and control blood samples.
Following optimisation, the performance of the final assay
configuration and algorithm will be validated in a further,
appropriately powered clinical validation study (or studies)
designed to meet European in vitro device regulations and US FDA
regulatory requirements over a 12 to 18 month period. The cancer
centres involved will aim to publish the full results of the
studies in leading peer-reviewed publications.
Successful data and publications from the validation will then
allow for the commercialisation of the Parsortix based pelvic mass
test in the United States and Europe, and eventually worldwide.
Opportunities will also be explored for the early accelerated
commercialisation of the ovarian application via commercial
partnerships.
FDA clearance in metastatic breast cancer
The Parsortix system must gain regulatory authorisations before
it can be sold for use in clinical markets (for use in the
diagnosis or management 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. Significant
efforts are being made to secure a United States FDA clearance for
use of the platform in the enrichment and harvesting of cancer
cells from metastatic breast cancer patients for use in subsequent
analyses. FDA clearance would not only allow sale of the product
for clinical use in the United States, but would also validate the
analytical performance of the system, thereby potentially
influencing system adoption across both research and future
clinical applications, worldwide.
During the year, the Company has completed several fundamental
evaluations of the analytical performance of the Parsortix system.
The University of Texas MD Anderson Cancer Center has been selected
as the lead cancer centre for analysis of the pivotal clinical
study covering the primary endpoint and one of the secondary
endpoints for the study.
The pivotal clinical study is designed to collect blood samples
from 200 metastatic breast cancer patients and 200 healthy
volunteers of similar age and demographics. The blood samples will
be processed using the Parsortix system to capture and harvest
circulating tumour cells (CTCs). The harvested cells will be
evaluated using several different downstream analysis techniques,
with the results designed to support the following "Intended Use
Statement" for the Parsortix(TM) PC1 system:
"The Parsortix(TM) PC1 instrument is an in vitro diagnostic
device intended to harvest circulating tumor cells (CTCs) from the
peripheral blood of patients diagnosed with metastatic breast
cancer. The CTCs can be harvested from the instrument for
subsequent analysis."
The clinical study will be initiated at each site once the
participating centre has obtained Scientific Review Committee and
ethics approvals and contractual arrangements are completed. All
aspects of the pivotal clinical study, including the downstream
analyses, will be undertaken by the independent cancer centres from
blinded samples.
The speed of patient accrual is a key variable in the overall
timing of the pivotal FDA clinical study. ANGLE is currently
engaged with six different leading cancer centres across the United
States to finalise contractual agreements and get IRB
(institutional review board) approvals in place to enable these
centres to enrol patients for the study. The aim is to complete the
necessary analytical and clinical studies so that results are
available in H1 2018. These will then form the basis of an FDA
submission for clearance in metastatic breast cancer.
Once the breast cancer FDA clearance has been obtained, it is
envisioned that additional studies will be conducted to allow for
extension of the intended use to other cancer types, including
ovarian 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 presented further work with
Parsortix at the San Antonio Breast Cancer Symposium (SABCS 2016).
Their findings continue to support the potential for the use of
Parsortix as a liquid biopsy for metastatic breast cancer. Having
assessed how best to progress this potential clinical application
from the perspective of cost and speed to market, ANGLE has now
included this form of gene expression analysis as an element of the
pivotal FDA clinical study described above.
Prostate cancer: blood test alternative to prostate biopsy
During the year, Barts Cancer Institute presented further work
with the Parsortix system as a poster at the National Cancer
Research Institute (NCRI 2016). In a study of around 80 samples
from men with prostate cancer, Barts reported that the mesenchymal
CTCs captured by Parsortix, which are missed by antibody-based CTC
systems and cannot be addressed by ctDNA-based assays, may have
particular relevance in assessing the status of the disease.
Post period end, Barts reported in the peer-reviewed journal,
Clinical Cancer Research, their findings using ANGLE's Parsortix
system of a particularly interesting rare cell, identified by the
researchers as megakaryocytes, in the blood of prostate cancer
patients together with their discovery that the number of these
cells in the blood correlates closely with increased patient
survival. This is the first time that the presence of these cells
in the blood has been shown to correlate with cancer prognosis.
The consequence of these findings is that, from a simple blood
test, the Parsortix system has been shown to be capable of
harvesting for analysis not only mesenchymal CTCs, which are linked
to a poor outcome, but also cells, which are linked to a favourable
patient outcome. Barts researchers showed in their 40 patient study
that combining these two factors enabled the identification of
patients 10 times more likely to die of their disease in the short
term. This knowledge may point to more aggressive treatment earlier
amongst this subset of patients, potentially improving
outcomes.
Investigation of the presence and clinical potential of
megakaryocytes in patient blood opens up a whole new area for
cancer research and ANGLE's patented Parsortix system is the only
system that has been demonstrated to be capable of harvesting these
cells.
ANGLE is now working on plans to develop the commercial
diagnostic potential of Barts' findings both in relation to earlier
work on the detection of prostate cancer and the more recent work
on detecting those with aggressive diseases. A clinical study of
the use of Parsortix as an alternative, or pre-cursor, to solid
prostate biopsy is also under consideration. Successful results
from such a study would potentially mean that men without cancer
could avoid unnecessary and potentially harmful solid biopsy and
surgical intervention, whereas men with an aggressive form of
disease could be fast-tracked for further investigation and
treatment.
We believe a simple blood test to assess whether a solid
prostate biopsy is warranted would improve patient care and help to
reduce healthcare costs.
Research use sales
Following first research use sales of the Parsortix system in
December 2015, good progress has been made during the period in
building a sales pipeline in this market, which is estimated to be
GBP250 million per annum.
The installed base of Parsortix instruments is continuing to
grow, standing at over 145 at 30 April 2017, up from c. 85 at 30
April 2016. Over 30,000 blood separations have now taken place with
Parsortix, up from c. 15,000 at 30 April 2016.
Adoption of Parsortix into the customers' routine laboratory
practice is evident from a substantial increase in revenues from
cassette sales, which are up over 400% from last year. Overall
research use Parsortix sales have increased over 40%.
Our sales team continue to focus on supporting our customers as
they evaluate Parsortix in their current laboratory procedures, and
we have seen a cumulative conversion rate for evaluations to sales
of over 75%. However, evaluations are often complicated because of
limitations in the analytical techniques being used downstream of
the Parsortix system and the experimental nature of the research
work being undertaken. At the year end, there were a further 20
prospective customers evaluating Parsortix systems with a view to
purchase.
We are aware of research being undertaken with the Parsortix
system that is funded and developed by third parties in 14
different cancer types, including:
Breast cancer Cervical cancer
Colorectal cancer Endometrial cancer
Head and neck cancer Hepatocellular cancer
(liver)
Melanoma Neuroendocrine cancer
Non-small cell lung cancer Ovarian cancer
(NSCLC)
Pancreatic cancer Prostate cancer
Renal cancer (kidney) Small cell lung cancer
(SCLC)
Half of the top ten breast cancer CTC researchers worldwide (as
measured by the number of publications they have published on CTCs)
have now adopted the Parsortix system for CTC harvest and
analysis.
In the United States, over half of the 27 National Comprehensive
Cancer Centres have either purchased the Parsortix system or are
currently evaluating it for purchase.
In Europe, Parsortix has been selected for CANCER-ID, the
European consortium comprising 38 partners from 13 countries funded
by the Innovative Medicines Initiative to establish standard
protocols and clinical validation of liquid biopsies.
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.
There are now five publications in peer-reviewed journals (30
April 2016: 3). There are also 13 posters presented at
international cancer conferences, which are publicly available. In
addition, there have been numerous other posters presented, which
have not yet been made publicly available as they are being
prepared for peer-reviewed publications.
During the year, third parties presented research using
Parsortix at a wide range of leading cancer conferences,
including:
-- EACR - European Association for Cancer Research
-- AACR - American Association for Cancer Research
-- AACC - American Association for Clinical Chemistry
-- ASCO - American Society of Clinical Oncology
-- NCRI - National Cancer Research Institute conference
-- SABCS - San Antonio Breast Cancer Symposium
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 the routine
adoption of Parsortix as the system of choice for the harvesting of
cancer cells from patient blood for analysis.
As a product-based company, ANGLE's ability to obtain wide
adoption in the research field with consequent rapidly growing
third party published evidence provides a strong advantage compared
to the vast majority of competitors who have service
laboratory-based offerings and have only their own work to rely on
for published evidence.
Intellectual property further strengthened
Intellectual property protection around the Parsortix system
continued to be strengthened during the year and the Parsortix
system is now covered by granted patents in the United States,
Europe, Australia, Canada, China and Japan. The increased patent
protection extended the breadth and duration of patent coverage for
the Parsortix system out to 2034. Additional patents are being
pursued worldwide.
Importantly, this intellectual property position enables the
Company to sell the Parsortix system as a product (comprising an
instrument and consumable). Most of ANGLE's competitors in the
liquid biopsy market have IP which relates only to the provision of
a service. As such the competitors are dependent on a reference
laboratory-based business model with all of the associated
limitations to cost and scalability. ANGLE's Directors believe that
the clinical customer base will prefer a product which enables them
to conduct assays without the inconvenience of having to send
samples to an external laboratory.
Outlook
ANGLE has made significant progress in its strategy towards
commercialisation of Parsortix. Importantly, it recently announced
positive results from two independent studies (c. 200 patients
each) that highlighted the potential of the Parsortix system to
facilitate the detection of ovarian cancer pre-surgery in women
with high risk pelvic masses. Following optimisation of the
Parsortix-based pelvic mass assay, the Company will validate the
assay in a further, appropriately powered clinical validation
study, with the goal of achieving regulatory clearance and
subsequent commercialisation of this assay in Europe and the
US.
Work on the pivotal clinical study in metastatic breast cancer
is ongoing, with study results expected in H1 2018. The primary
goal is to generate data that will support an FDA submission for
use of the Parsortix system in harvesting cancer cells from
metastatic breast cancer patients for subsequent evaluation.
With its differentiated competitive position, the growing body
of clinical evidence and increasing research use, ANGLE is
consolidating its position as a leading player in liquid biopsy; a
potential multi-billion dollar market that is expected to
revolutionise cancer care.
Garth Selvey
Chairman
26 July 2017
ANGLE PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 APRIL 2017
2017 2016
(Unaudited) (Audited)
Note GBP'000 GBP'000
Revenue 498 361
Cost of sales (123) (107)
------------ ----------
Gross profit 375 254
Operating costs (7,810) (5,703)
------------ ----------
Operating profit/(loss) from continuing operations (7,435) (5,449)
Net finance income/(costs) 25 22
------------ ----------
Profit/(loss) before tax from continuing operations (7,410) (5,427)
Tax (charge)/credit 5 1,018 309
------------ ----------
Profit/(loss) for the year from continuing operations (6,392) (5,118)
Profit/(loss) from discontinued operations - 32
------------ ----------
Profit/(loss) for the year (6,392) (5,086)
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations 139 (7)
------------ ----------
Other comprehensive income/(loss) 139 (7)
Total comprehensive income/(loss) for the year (6,253) (5,093)
============ ==========
Profit/(loss) for the year attributable to:
Owners of the parent
From continuing operations (6,147) (4,924)
From discontinued operations - 31
Non-controlling interests
From continuing operations (245) (194)
From discontinued operations - 1
Profit/(loss) for the year (6,392) (5,086)
============ ==========
Total comprehensive income/(loss)
for the year attributable
to:
Owners of the parent
From continuing operations (5,994) (4,978)
From discontinued operations - 31
Non-controlling interests
From continuing operations (259) (147)
From discontinued operations - 1
Total comprehensive income/(loss)
for the year (6,253) (5,093)
======== ========
Earnings/(loss) per share
Basic and Diluted (pence per
share)
From continuing operations (8.71) (8.69)
From discontinued operations - 0.05
From continuing and discontinued
operations 6 (8.71) (8.64)
ANGLE PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2017
Note 2017 2016
(Unaudited) (Audited)
GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 824 455
Intangible assets 7 1,918 1,346
------------ -----------
Total non-current assets 2,742 1,801
------------ -----------
Current assets
Inventories 665 376
Trade and other receivables 714 489
Taxation 1,261 309
Cash and cash equivalents 5,536 3,764
------------ -----------
Total current assets 8,176 4,938
------------ -----------
Total assets 10,918 6,739
============ ===========
EQUITY AND LIABILITIES
Equity
Share capital 9 7,482 5,898
Share premium 33,285 25,299
Share-based payments reserve 822 629
Other reserve 2,553 2,553
Translation reserve 132 (21)
Retained earnings (34,227) (28,141)
ESOT shares (102) (102)
------------ -----------
Equity attributable to owners of the parent 9,945 6,115
------------ -----------
Non-controlling interests (1,139) (880)
Total equity 8,806 5,235
------------ -----------
Liabilities
Current liabilities
Trade and other payables 8 2,112 1,504
------------ -----------
Total current liabilities 2,112 1,504
------------ -----------
Total liabilities 2,112 1,504
------------ -----------
Total equity and liabilities 10,918 6,739
============ ===========
ANGLE PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 APRIL 2017
2017 2016
(Unaudited) (Audited)
GBP'000 GBP'000
Operating activities
Profit/(loss) before tax from continuing
operations (7,410) (5,427)
Adjustments for:
Depreciation of property, plant
and equipment 267 198
(Profit)/loss on disposal of property,
plant and equipment 5 -
Amortisation and impairment of intangible
assets 245 187
Exchange differences (50) (65)
Net finance (income)/costs (25) (22)
Share-based payments 254 238
------------ ----------
Operating cash flows before movements
in working capital: (6,714) (4,891)
(Increase)/decrease in inventories (575) (238)
(Increase)/decrease in trade and
other receivables (290) (107)
Increase/(decrease) in trade and
other payables 131 474
------------ ----------
Operating cash flows (7,448) (4,762)
Research and development tax credits
received 65 -
Net cash from/(used in) operating
activities (7,383) (4,762)
Investing activities
Purchase of property, plant and
equipment (70) (186)
Purchase of intangible assets (374) (332)
Interest received 26 21
------------ ----------
Net cash from/(used in) investing
activities (418) (497)
Financing activities
Net proceeds from issue of share
capital 9,570 1
------------ ----------
Net cash from/(used in) financing
activities 9,570 1
Net increase/(decrease) in cash
and cash equivalents from continuing
operations 1,769 (5,258)
Discontinued operations
Net cash from/(used in) operating
activities (5) (34)
Net cash from/(used in) investing
activities - 611
------------ ----------
Net increase/(decrease) in cash
and cash equivalents from discontinued
operations (5) 577
Net increase/(decrease) in cash
and cash equivalents 1,764 (4,681)
Cash and cash equivalents at start
of year 3,764 8,443
Effect of exchange rate fluctuations 8 2
------------ ----------
Cash and cash equivalents at end
of year 5,536 3,764
============ ==========
ANGLE PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 APRIL 2017
----------------------------------------------- Equity attributable to owners of the parent
---------------------------
Share-based
Share Share payments Other Translation
capital premium reserve reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 May 2015
(Audited) 5,897 25,299 432 2,553 33
For the year to
30 April 2016
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Consolidated
profit/(loss)
Other
comprehensive
income/(loss)
Exchange
differences
on
translating
foreign
operations (54)
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Total
comprehensive
income/(loss) (54)
Issue of shares 1 -
Share-based
payments 238
Released on
deemed
disposal (41)
Deemed disposal
of controlling
interest in
investment
___ ______ ___ _______ ___ ______ ___ ______ ___ ______
At 30 April 2016
(Audited) 5,898 25,299 629 2,553 (21)
For the year to
30 April 2017
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Consolidated
profit/(loss)
Other
comprehensive
income/(loss)
Exchange
differences
on
translating
foreign
operations 153
------------------ ------------------ ------------------ ------------------ ----------------- -------------------
Total
comprehensive
income/(loss) 153
Issue of shares 1,584 7,986
Share-based
payments 254
Released on
exercise (1)
Released on
forfeiture (60)
___ ______ ___ _______ ___ ______ ___ ______ ___ ______
At 30 April 2017
(Unaudited) 7,482 33,285 822 2,553 132
========== ========== ========== ========== =========
---- Equity attributable
to owners of the
parent -----
Total Non-
Retained ESOT Shareholders' controlling Total
earnings shares equity interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 May 2015 (Audited) (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) 47 (7)
----------------------------------------------- ------------ ----------- -------------- ------------ ------------
Total comprehensive income/(loss) (4,893) (4,947) (146) (5,093)
Issue of shares 1 1
Share-based payments 238 238
Released on deemed disposal 41 - -
Deemed disposal of controlling interest in
investment (29) (29) 29 -
___
________ ___ ______ ___ _______ __ _______ ___ _______
At 30 April 2016 (Audited) (28,141) (102) 6,115 (880) 5,235
For the year to 30 April 2017
----------------------------------------------- ------------ ----------- -------------- ------------ ------------
Consolidated profit/(loss) (6,147) (6,147) (245) (6,392)
Other comprehensive income/(loss)
Exchange differences on translating
foreign operations 153 (14) 139
----------------------------------------------- ------------ ----------- -------------- ------------ ------------
Total comprehensive income/(loss) (6,147) (5,994) (259) (6,253)
Issue of shares 9,570 9,570
Share-based payments 254 254
Released on exercise 1 - -
Released on forfeiture 60 - -
___ ___
________ ___ ______ ___ _______ ______ ___ _______
At 30 April 2017 (Unaudited) (34,227) (102) 9,945 (1,139) 8,806
=========== ========== ========== ========== ==========
ANGLE PLC
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE YEARED 30 APRIL 2017
1 Preliminary announcement
The preliminary announcement set out above does not constitute
ANGLE plc's statutory Financial Statements for the years ended 30
April 2017 or 2016 within the meaning of section 434 of the
Companies Act 2006.
The financial information for the year ended 30 April 2017 is
unaudited and an auditor's report has not yet been issued.
Statutory audited financial statements for the year will be
finalised on the basis of the financial information presented by
the directors in this preliminary announcement.
The financial information for the year ended 30 April 2016 is
derived from the audited financial statements for that year and the
auditor's report on the consolidated Financial Statements for the
year ended 30 April 2016 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 2017
are unchanged from those used for the statutory Financial
Statements for the year ended 30 April 2016, except as referred to
in Note 2. The 2017 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 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.
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,
the projected income and expenditure (the 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 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 GBP6.4 million (2016: GBP5.1 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 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 period. Due to the
losses in 2017 and 2016, 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 a
weighted average of 73,350,486 ordinary 10p shares (2016:
58,863,713).
7 Intangible assets
Intellectual Computer Product Total
property software development
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 May 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
Additions 209 1 462 672
Disposals - (5) - (5)
Exchange movements 26 - 168 194
At 30 April 2017 677 2 1,969 2,648
============= ========= ============ ========
Amortisation and impairment
At 1 May 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
Charge for the year 13 1 142 156
Disposals - (5) - (5)
Impairment 89 - - 89
Exchange movements - - 49 49
At 30 April 2017 164 - 566 730
============= ========= ============ ========
Net book value
At 30 April 2017 513 2 1,403 1,918
============= ========= ============ ========
At 30 April 2016 380 2 964 1,346
============= ========= ============ ========
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 payables
2017 2016
(Unaudited) (Audited)
GBP'000 GBP'000
Current liabilities:
Trade payables 980 417
Other taxes and social security costs 71 57
Other payables 1 41
Accruals and deferred income 1,060 989
------------ ----------
2,112 1,504
============ ==========
Accruals include amounts for professional fees, vacation, salary
and bonuses. Deferred income includes amounts for pre-billed
revenues.
9 Share capital
The Company has one class of ordinary shares which carry no
right to fixed income and at 30 April 2017 had 74,815,774 ordinary
shares of 10p each allotted, called up and fully paid (2016:
58,978,338).
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.
The Company issued 22,000 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 an employee. Shares were
admitted to trading on AIM in September 2016.
10 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 31 October 2017 at ANGLE plc, 10 Nugent Road, the Surrey
Research Park, Guildford, GU2 7AF. Notice of the meeting will be
enclosed with the audited Statutory Financial Statements.
The audited Statutory Financial Statements for the year ended 30
April 2017 are expected to be distributed to shareholders by 6
October 2017 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 on 26
July 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUWCMUPMPGQ
(END) Dow Jones Newswires
July 27, 2017 02:03 ET (06:03 GMT)
Angle (LSE:AGL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Angle (LSE:AGL)
Historical Stock Chart
From Sep 2023 to Sep 2024