PRM Proteome Sciences Plc

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation.

                                       10 April 2025

Proteome Sciences plc

("Proteome Sciences" the "Company" or the "Group")

Final results for the year ended 31 December 2024

The Company is pleased to announce its audited results for the year ended 31 December 2024.

Highlights:

·    Total revenues of £4.89m (2023: £5.03m)

·    TMT^® reagent sales, and royalties of £4.01m (2023: £3.40m)

·    Proteomic services revenues of £0.87m (2023: £1.63m)

·    Gross profit £0.67m (2023: £1.65m)

·    Loss after tax £3.41m (2023: £2.44)

·    Cash at year end £1.13m (2023: £2.03m)

·    Cost of sale and administrative costs £7.24m (2023: £6.65m)

·    Adjusted EBITDA* loss of £1.48m (2023: loss of £0.92m)

* EBITDA is a non-GAAP company specific measure which is considered to be a key performance indicator of the Group's financial performance. Adjusted EBITDA is calculated as operating profit before depreciation (including right-to-use assets amortisation), amortisation, non-recurring costs, and employee share-based payment.

Executive Chairman of Proteome Sciences plc, commented:

The back end of 2024 showed a good recovery from the impact of the global downturn in the biotech and pharma markets over the previous year.  Following the considerable increase in customer orders and services in the second half of 2024 we are pleased to reiterate that the momentum from the second half of last year has continued into 2025 with the pipeline now extending well into 2026.

We are optimistic that our proteomics business has gone through a significant inflection point and that it can deliver substantial increases and returns in the future.

Report and Accounts and Notice of Annual General Meeting:

Copies of the Annual Report and Accounts together with notice of the Annual General Meeting ("AGM") will be posted to shareholders shortly and made available on the Company's website (www.proteomics.com). 

The AGM of the Company will take place at 12 noon on Friday 16 May 2025 at Allenby Capital, 5 St Helen's Place, London, EC3A 6AB.   Formal notice of the AGM will be sent to shareholders which will contain further information and the resolutions which will be proposed at this meeting.

For further information please contact:

About Proteome Sciences plc. (www.proteomics.com)

Proteome Sciences plc is a specialist provider of contract proteomics services to enable drug discovery, development and biomarker identification, and employs proprietary workflows for the optimum analysis of tissues, cells and body fluids. SysQuant® and TMT^®MS2 are unbiased methods for identifying and contextualising new targets and defining mechanisms of biological activity, while analysis using Super-Depletion and TMTcalibrator™ provides access to over 8,500 circulating plasma proteins for the discovery of disease-related biomarkers. Targeted assay development using mass spectrometry delivers high sensitivity, interference-free biomarker analyses in situations where standard ELISA assays are not available.

Executive Chairman's Statement

In the first half of 2024 our proteomics business was adversely affected by the challenging background to the biotech and pharma markets with reduced R&D budgets and continued postponement of projects which had carried over from 2023.  Following the £1.0m reduction in revenues in the interim results to £2.22m (H1 2023: £3.21m) we are pleased to report that the second half recovery anticipated at that time materialised with a 47% increase in H2 to £2.67m (2023 £1.82m) with full year revenue for the year to 31 December 2024 returning to £4.89m (2023: £5.03m) reflecting strong increases in services orders and TMT. A number of the services orders commenced in H2 but the bulk of these have carried over into 2025 representing a 10 fold increase over the similar position at the start of 2024.

The launch and availability of TMTpro 35 plex tags had a very positive impact in the market and TMT sales and royalties that showed a 16% reduction at the interims to £1.85m (H1 2023: £2.20m) performed strongly in H2 with full year revenue increased 18% to £4.01m (2023: £3.40m).

The Company won a substantial Good Clinical Laboratory Practice ("GCLP") contract with a US biopharmaceutical company in April 2024, and the same customer has awarded us a follow up contract to be undertaken in 2025 and 2026, part of a larger clinical study.

Proteome Sciences has now added data-independent acquisition ("DIA") (label free) to its services offering with first client projects underway.

Good progress has been made with our new DIA multiplex tags ("DXT") with patents filed in the summer.  Discussions are underway with a shortlisted group of prospective licencees and a licence should be concluded in 2025.

Our first commercial contract in Single Cell Proteomics ("SysQuant^® SCP") was secured in Q4 2024.  With results available shortly we expect the number of projects to increase sharply in 2025.

The back end of 2024 showed a good recovery from the impact of the global downturn in biotech and pharma markets over the previous year.  Following the considerable increase in customer orders and services in the second half of 2024 we are optimistic that our proteomics business has gone through a significant inflection point and that it can deliver substantial increases and returns in the future.

Services

2024 followed 2023 as a challenging year in the biotech and pharma services markets including service providers in proteomics.  The year commenced with significant headwinds as reported in many industry and financial articles at the time.  These created significant delays to subsequent biopharma financial investments which resulted in reduced outsourcing to Contract Research Organisation ("CRO") services at a time when CROs were already battling with other cost contingencies.

As stated in our 2023 Annual Report and Accounts, the US is by far the most significant market for biopharma companies outsourcing proteomic services to CROs including Proteome Sciences. The biopharma layoffs and general slowdown severely curtailed our order carry-over position from 2023 to 2024 and restricted our ability to close orders at the level projected at the start of the 2024 budgeting cycle.

Fortunately, later in H1 2024 we successfully obtained significant orders from our US customer base, including a high value GCLP clinical sample contract value in excess of £500k from a West Coast US biopharma company.  Adding this to other orders largely from the US enabled us to secure £950k of orders in the first half of 2024 and that in turn started to boost Q2 service revenue.  We received over £2m in orders in 2024 mainly from the USA which was more than 3 times the total order value in 2023.

2024 revenue was hampered by three factors in the first half of the year: the absence of carry-over orders from 2023 into 2024, the low order uptake in H1 and that the timing of the major GCLP clinical study mentioned above would provide sequential samples for analysis in both 2024 and 2025 with revenue generated from 2025.  Services revenue nevertheless picked up well, more than doubling in the second half to £0.87m for the full year to 31 December 2024.

In the final quarter of 2024, we were most encouraged by the high level of carry-over in orders into the next two financial years 2025 and 2026. These currently total more than £1.30m at the start of 2025 with a pipeline of an expected additional £2m of orders received that will contribute to 2025 and 2026 revenue.  We have never been in such a strong position in previous years and this should underpin significant revenue growth for the next 2 years.

The investment made in the new US laboratory was prompted by the significant quantity of local demand received from the US West Coast.  During the year we launched our first single cell proteomics services (SCP) for academic and commercial customers with several academic collaborations successfully completed that should lead to publication in influential scientific journals.  We also obtained and started our first commercial biopharma orders.  As in previous years we continued to attend relevant conferences and exhibitions throughout 2024 both in the US and Europe to combine these events with local customer engagement, and visits.

The biopharma industry slowdown still ongoing in the early part of 2024 continued to affect our business more than expected.  Fortunately, the adverse head winds disappeared and transformed into favourable tail winds halfway through 2024 and these transformed the market background and enabled our services business to rapidly rebound.  We purchased an additional top end mass spectrometry system early in Q4 2024 in order to increase our capacity to address the strong customer demand. We needed to acquire a second Exploris mass spectrometer at the close of 2024 as a result of the burgeoning order pipeline.   The benefits from the additional capacity brought on stream will be more fully reflected in 2025 and 2026 revenues.

Licences

We have an exclusive global license with Thermo Fisher Scientific for our tandem mass tag reagents ("TMT^®") and other licences using biomarkers in stroke and Alzheimer's disease. Our wider portfolio of biomarkers, research tools and experimental drug compounds are also available for licensing. These include recently filed applications for a new series of tags for multiplexing (DIA). Proteome Sciences holds registered trademarks including Tandem Mass Tag^®, TMT^®, SysQuant^®, and applications for DIA multiplex Tags™ and DXT.

We are actively pursuing licensing partners for the DXT reagents and expect to move these discussions to conclusion in 2025 and are looking to perform further validation through internal research and external grant funding to support out-licensing of other biomarker panels.

Tandem Mass Tags^®

Our licensing revenue comes from both direct reagent sales to Thermo Fisher Scientific and downstream royalty payments from their sales of packaged kits. During 2024 we saw strong recovery for both revenue streams. This was driven by improving market conditions and higher demand from Thermo Fisher Scientific for reagent supplies following the full launch of 35plex TMTpro^® in June 2024. Total revenue increased by 18% to £4.01m (2023: £3.40m).

Looking forward, we anticipate further adjustments in the market as more comparisons between TMTpro™ and DIA are published, showing that TMTpro™ provides higher precision and is better suited to identifying biomarkers in cells and tissues and with DIA starting to compete more with the high throughput methods available from SomaLogic and O-Link for large cohort studies. We expect the benefits of TMTpro™ 35plex in single cell proteomics will increase the use of tagging and size of the mass spectrometry marketplace.

Stroke Biomarkers

There has been little visible progress from our partner Randox in completing their European registration trials. A research-use-only test, the Neurovascular Dysfunction Biochip, that uses several of our licensed biomarkers is now commercially available, but the expected date for market approval for clinical use remains unknown. We have not yet received royalties in connection with the launched kit and continue to monitor Randox performance.

Galaxy CCRO, the small physician-led biomarker company in the US continues with its biomarker validation study of the FAST>ER point-of-care test using Glutathione S-transferase pi (GSTPi). Initial results are expected at the end of H1 2025, but preliminary data suggested the need for greater sensitivity and Galaxy has commissioned development of a second-generation test that has substantially improved performance. As part of the original licensing deal Proteome Sciences own 9.7% of Galaxy's issued stock and will additionally benefit from their other non-stroke research and development projects.

Research

During the first half of 2024 we completed several research projects. Most notably was the synthesis of a new 6plex set of isotopic tags that enable multiplexed data-independent acquisition (DIA) mass spectrometry. Our internal testing showed these second-generation tags perform well for both protein identification rates and quantitative accuracy. The DIA multipleX Tag™ (DXT) set is currently being evaluated by key academic opinion leaders and prospective licensing partners for use across a range of different applications. We intend to present data on the tags in June at the 2025 American Society for Mass Spectrometry meeting.

We completed the development of a TMTpro™ 16plex SysQaunt® Single Cell Proteomics workflow using our CellenONE platform. After c.18 months research and development, we performed our first commercial project analysing more than 2,000 cells across multiple chips. We have refined the data analytics pipeline to improve consistency and we are detecting an average of ~2,000 proteins per 16plex. Further research is underway to extend capacity and performance to address the growing requirements of our customers. In parallel, our data scientists have developed improved analysis and data visualization tools that provide a superior user interface. This offers simplified data assembly and automated analysis by non-expert users. Results are output into a dashboard allowing a wide range of statistical modelling and visualizations that let customers utilise relevant biological discoveries from their SCP studies.

Our ProteoSHOP^® blood proteomics workflows are based on removal of the 14 most abundant proteins and deliver good performance with >2,500 proteins detectable and 1,000 of these quantifiable across all samples in a recent study with 150 individual samples. To improve this further we have evaluated a number of recently introduced reagents that enrich proteins and extracellular vesicles from serum and plasma. Our initial results are promising, increasing the number of detected proteins to >4,500 in human serum. This has also been tested in bovine serum and we can see significant improvements over our previous depletion-based method that provides deeper analysis for customers in veterinary drug and vaccine development. We have expanded our proteomics services with the development of DIA workflows using Orbitrap Exploris mass spectrometers. Results were encouraging with more than 13,000 proteins detectable in human cell lines. We have also improved our computational MS and bioinformatics processes for DIA and introduced DIA services towards the end of the year. A full multiplexed SysQuant® DIA offering will be developed and launched during H1 2025.

Operating Environment

Due to the macroeconomic challenges experienced in the second half of 2023 and the first half of 2024, the carry-over in orders into 2024 was severely depleted.  Since then, the number of projects and orders secured during the second half of the year rose sharply providing a record carry-over into 2025 of £1.30m.

The new US services facility in San Diego delivered good early customer project results but again the challenging economic climate in the industry continued through the first half of 2024 prompting a temporary suspension in services in the summer pending confirmation of a better project pipeline.  Again, the background in the second half rebounded as expected and activities in San Diego returned to normal in February 2025.

On the tag side the launch and availability of the TMTpro™ 35 plex tags had a very positive effect in the market and helped to propel TMT revenues.

We have already added DIA (label free) to our range of services offerings with first client projects underway and we expect multiplexed DIA to provide new streams of revenue in 2025 and beyond.

Our innovative DIA plex tags are regarded as important future value drivers and will accelerate after a licence is concluded with one of the major distributors in the field of reagent tags.

Following the successful completion of a number of academic projects in SCP we await scientific publication with considerable interest and the completion of our first commercial orders from which we expect activity and revenue from SCP.

As previously announced Mariola Söhngen stepped down as CEO and director on 31 January 2025. Chairman, Christopher Pearce, has taken the role of Executive Chairman until the Company appoints an appropriate successor to become CEO. It was also announced that Abdel Omari would step down as CFO and director on 31 January 2025, but he will then take on a part time role as financial consultant and adviser to Proteome Sciences plc.

On behalf of shareholders, I would like to take this opportunity to thank Mariola Söhngen and Abdel Omari for the considerable contributions that they have made to the business over their tenure by overseeing the investments made to develop DIA tags, SCP and establishing the US services facility in San Diego.

At the end of a difficult year for our business and after the substantial strategic investments that have been made for the future, we would like to thank all our employees for their contribution, passion and hard work. We believe that these should be transformational for future growth.

Outlook

As a result of the economic and industry background our business had to navigate through a difficult period from the second half of 2023.  Our proteomics activities remained healthy with a good and growing order book with the translation into revenues delayed but which started to rapidly rebound in the second half of 2024.

With strong increases in orders for both TMT and our services business we were convinced that the downturn in the biotech and pharma markets was behind us.  We consequently decided to invest further in additional machine capacity and staff at the close of 2024 to address the growing customer demand.

We are pleased to reiterate that the momentum from the second half of last year has continued into 2025 with the pipeline now extending well into 2026.  We are optimistic that our proteomics business has gone through a strong inflection point in its development and that it can deliver substantial increases and returns in the future.

STRATEGIC REPORT

Review of the Business

The principal activities of the Group involve protein biomarker research and development.  As a leader in applied proteomics, we use high sensitivity proprietary techniques to detect and characterise differentially expressed proteins in biological samples for diagnostic, prognostic and therapeutic applications.  In addition, we invented and developed the technology for TMT^® and TMTpro™, and manufacture these small, protein-reactive chemical reagents which are sold for multiplex quantitative proteomics under exclusive license by Thermo Fisher Scientific.

Proteome Sciences is a major provider of contract research services for the identification, validation and application of protein biomarkers. Our clients are predominantly pharmaceutical and biotechnology companies, but we also perform services for other sectors including academic research. While we have several well-established workflows that meet the needs of many customers, we retain our science-led business focus wherever possible, developing new analytical methods, new reagents and data analysis tools to provide greater flexibility in the types of studies we can deliver. Our contract service offering remains centred on mass spectrometry-based proteomics, and this is becoming more widely implemented in drug development projects as the pharmaceutical industry seeks to expand biological knowledge beyond genomics. These services are fully aligned with the drug development process, can be used in support of clinical trials and in vitro diagnostics, and include proprietary bioinformatics capabilities. 

Progress during 2024

Growing Our Services Business

Building for the future

During 2024 we have continued our long-term program of improving and broadening our proteomics services. Following a detailed review in 2022 we have taken a stepwise approach to improve and expand all aspects of our workflows. In 2023 we completed the move to single-pot, solid-phase-enhanced sample-preparation ("SP3") technology sample processing that enabled a 50% increase in throughput for our standard methods. We have continued this progress and now have adapted methods for working with smaller samples, that further enhances the utility of unbiased biomarker discovery from small samples such as tumour biopsies. We have also been evaluating new mass spectrometry methods using DIA and combined this with further development of multiplexing tags for DIA. The initial results for both standard and multiplexed DIA are encouraging, and we are pushing forward these developments into our Biomarker Services. The final step in our analytical pipeline is statistical analysis of quantitative data from the mass spectrometry results. We have always provided a high-quality data science service and combined this with deep biological analysis of the identified protein changes to assist our customers in understanding how the data support their studies. During 2024 we have further developed our data science team bringing in skills for rapid software development and enhanced data visualization. We are currently testing a new data dashboard concept internally and aim to release this for customer applications in 2025.

Status of the Tandem Mass Tag^® Product Portfolio

This year we released the latest TMTpro™ 35plex set with our exclusive licensee Thermo Fisher Scientific. Using the higher plexing capabilities enables higher overall data quality across large sample sets, with less missing data and high quantitative precision and accuracy. In a recently completed study we saw an approximately 40% increase in the number of proteins quantified in 150 human serum samples compared to similar studies using 18plex TMTpro™. The market response has been positive amongst large TMTpro™ users, and we expect this to filter down to smaller research groups and academic core laboratories in 2025.

During the year we also extended our program in multiplexed tags for DIA, manufacturing a second generation 6plex set of tags. This gave improved performance for multiplexed DIA applications and increased the numbers of proteins identifiable. We also demonstrated excellent quantitative performance with observed ratios being extremely close to expected values across a biologically relevant dynamic range. A US provisional patent application has been filed, adding to the patent covering first generation tags filed in 2023. We are in discussions with several parties regarding licensing of the tags for sales, marketing and distribution, following the model established for TMT^®. We have also filed to register the trademarks 'DIA multipleX Tag' and 'DXT'.

Single Cell Proteomics

After prolonged development of the SCP platform, we secured our first commercial contract in Q4 2024. This study analysed >2,000 individual cells and we were able to identify different cell types within a complex multicellular sample. A second project with this customer is under negotiation with another SCP project for a different customer currently ongoing, and we expect the number of projects to increase quickly during 2025. We have also been working to extend the capacity and breadth of SCP using the recently introduced nPOP sample preparation. Using our CellenONE system with nPOP allows several thousand cells to be sorted in a single run. We are also looking to use massively parallel precursor prioritisation to further enhance the depth of proteome coverage and data completeness in such large studies. Recently a research group at Northeastern University, Boston, USA has published a scientific paper describing use of nPOP and prioritized acquisition that measured >2,000 proteins in each of 1,000 cells within a single day, substantially eclipsing the throughput of even the fastest data-independent acquisition workflows.

Stroke biomarkers

We still await outcomes from the two clinical trials being run by our licensees Randox and Galaxy CCRO, which we understand remain ongoing. The Galaxy trial has experienced slower than expected recruitment rates, but the initial phase has shown the lateral flow test to be easily deployable within the Emergency Room and specialized Acute Stroke Unit. There are also different kinetics of GSTP level changes during the first hour in hospital and we await their analysis in conjunction with clinical information to assess the utility of their FAST>ER test.

Patent Applications and Proprietary Rights

During the year 2024 we filed two new patents relating to our 1^st and 2^nd generation DIA multiplexing tags. We also filed for protection of the trademark DXT in relation to these tags. Four patents were granted and issued relating to methods of TMT^® labelling and biomarkers of Alzheimer's disease, whilst 55 cases from 6 families mainly related to non-exploited stroke biomarkers. One case relating to alternative mass tag structures no longer required was abandoned.

Strategic evaluation

Our main focus in the first half of 2024 was to further embed new technology offerings introduced in previous years and continue the innovation around areas of increasing pharmaceutical industry interest. The main activities have been:

·    Streamlining and improving the single cell proteomics sample preparation and data analysis workflows. We implemented the new nPOP cell sorting method and will expand this for use with 35plex TMT in the coming year. The new data dashboard is delivering a vast increase in data usability and the underpinning statistical tools have been further refined to increase overall data quality.

·    Exploring new methods for analysis of blood proteomics using enrichment methods introduced by different vendors. Indications are promising for both human and veterinary sectors.

·    Expanding our immunopeptidomics services by enhancing the data analysis pipeline using robust sequence rescoring and introduction of major histocompatibility complex II ("MHC II") specific pulldowns. This reflects the rapid increase of awareness around immune system remodelling during most diseases, and the challenges of chronic inflammation in ageing (inflammaging).

Financial Review

Results and Dividends

Key Performance Indicators ("KPI's")

●       The directors consider that revenue, adjusted EBITDA, and profit before/after tax are important in measuring Group performance.  The performance of the Group is set out in the Executive Chairman's Statement.

●       The directors believe that the Group's rate of cash expenditure and its effect on Group cash resources are important. Net cash outflows from operating activities for 2024 were £0.83m (2023: net cash outflows of £0.48m). The costs in 2024 were higher when compared to 2023 due to the investment in our San Diego site, development of next generation tags and the launch of SCP. We suffered from lower revenues in biomarker services as compared to 2023. Cash at 31 December 2024 was £1.13m (31 December 2023: £2.03m).

●       In 2024 service revenues decreased by 47% to £0.87m (2023: £1.63m).  As a proportion of total group revenue service revenues in 2024 were 18% compared to 32% in 2023.

Financial Performance

●     Revenue for the year ended 31 December 2024 showed a 3% decrease to £4.89m (2023: £5.03m).  This is comprised of two revenue streams: TMT^® related revenue and Proteomic (Biomarker) Services.  Sterling values of our sales and royalties received for TMT^® tags increased by 18% to £4.01m (2023: £3.40m)

●    Gross profit £0.67m (2023: £1.65m)

●    Administrative expenses, including depreciation of £3.02m (2023: £ 3.27m)

●    EBITDA decreased to £(1.52)m (2023: £ (1.14)m)

●    Adjusted EBITDA* loss of £1.48m (2023: loss £0.92m)

●    The loss after tax was £3.41m (2023: loss after tax of £2.44m)

*Adjusted EBITDA (a non-GAAP Group specific measure (see Note 3) which is considered to be a key performance indicator of the Group's financial performance) decreased by £0.56m year on year mainly due to lower revenues while costs have increased.

Taxation

Owing to the changing nature of our services business, with a stronger focus on commercial activities, we have not fully assessed our available R&D tax credit for 2024, and such amounts are only recognised when reasonably assured.

Costs and Available Cash

●  The Group maintained a positive cash balance in 2024 and continues to seek improved cash flows from commercial income streams. Due to flat revenues and higher operating costs year on year, the Group had a negative cash flow in the year. Administrative expenses in 2024 were £3.02m (2023: £3.27m)

●  Staff costs for the year were £3.49m (2023: £3.35m) of which £0.04m was a share based payment charge (2023: £0.22m)

●  Property costs without charges on rent of £0.51m were higher than previous years (2023: £0.44m) also including property costs for the lab in San Diego

●  Finance costs relate to interest due on loans from two major investors in the Company and lease interest.  Costs of £0.89m were higher than the prior year (2023: £0.80m)

●  Trade and other payables were £0.78m (2023: £0.63m)

●  Trade and other receivables were £0.43m (2023: £0.96m)

●  Cash at the year end was £1.13m (2023: £2.03m)

Principal Risks and Uncertainties

Commercialisation Activities

It is uncertain whether our range of contract proteomic services will generate sufficient revenues for the Group ultimately to be successful in an increasingly competitive commercial market which generally favours companies with a broader technology platform than our own.  Similarly, our increased capacities and the opening of our US laboratory create a risk that we do not generate sufficient orders to make our commercial activities profitable.

Management of Risk: The Group has sought to manage this risk by broadening its proteomic services offering by increasing the coverage of unbiased discovery experiments and broadening capabilities for analysis of very small samples including single cells, investing in our own sales by dedicating more staff time to direct business development activities in our principal commercial territories and adopting conventional service-based metrics directed at speed, cost and quality.

Adding new services bears the risk that competitors are already more advanced and it will be difficult to find and retain new customers.

Management of Risk: We believe the technology we are developing for single cell proteomics has a high demand in the market and hence we believe there is sufficient room for many players to satisfy the demand. Moreover, Proteome Sciences has a USP (Unique Selling Point) as we are the owner of TMT^® which gives us a number of advantages (including cost control) vis à vis competitors.

Dependence on Key Personnel

The Group depends on its ability to retain a limited number of highly qualified scientific, commercial and managerial personnel, the competition for whom is strong. While the Group has entered into conventional employment arrangements with key personnel and staff turnover is low, their retention cannot be guaranteed as evidenced by two resignations during 2024.

Management of Risk: The Group has a policy of organising its work so that projects are not dependent on any one individual, and we have strong managerial oversight and support for our laboratory-based staff.  Retention is also sought through annual, role-based reviews of remuneration packages, performance related bonus payments, and the opportunity for share option grants.

Investment Limitations

Sales and royalties from TMT^® have historically been key to revenue and working capital for the group to invest in the business. We are still reliant on TMT^® sales and royalties for the majority of our revenues and working capital to invest in growing the business remains limited.

Management of Risk:  In addition to previous cost reduction and ongoing containment measures which have significantly changed the cost profile of the business over the last years, we also actively engage with our major creditors to manage the Company's debt.

Competition and Technology

The international bioscience sector is subject to rapid and substantial technological change. There can be no assurance that developments by others will not render the Group's service offerings and research activities obsolete or otherwise uncompetitive.  Proteomics remains a growth area where increasing demand from the pharmaceutical industry remains ahead of the growth in service provider capacities.

Management of Risk: The Group employs highly experienced research scientists and senior managerial staff who monitor developments in technology that might affect the viability of its service business or research capability.  This is achieved through access to scientific publications, attendance at conferences and collaboration with other organisations.

Licensing Arrangements

The Group intends to continue sub-licensing new discoveries and products to third parties, but there can be no assurance that such licensing arrangements will be successful.

Management of Risk: The Group manages this risk by a thorough assessment of the scientific and commercial feasibility of proposed research projects which is conducted by an experienced management team. Risk has also been reduced by decreasing the overall number of research projects and re-distributing available resources. 

Patent Applications and Proprietary Rights

The Group seeks patent protection for identified protein biomarkers which may be of diagnostic, prognostic or therapeutic value, for its chemical mass tags, and for its other proprietary technologies. The successful commercialisation of such biomarkers, chemical tags and proteomic workflows is likely to depend on the establishment of such patent protection.  However, there is no assurance that the Group's pending applications will result in the grant of patents, that the scope of protection offered by any patents will be as intended, or whether any such patents will ultimately be upheld by a court of competent jurisdiction as valid in the event of a legal challenge. If the Group fails to obtain patents for its technology and is required to rely on unpatented proprietary technology, no assurance can be given that the Group can meaningfully protect its rights. All patents have a limited period of validity and competing products may be sold by third parties on expiry in each territory. Whilst the expiration of the earliest TMT^® patent in 2022 resulted in  a reduced royalty rate under the exclusive licence and distribution agreement with Thermo Fisher Scientific, we do not expect further royalty reductions in 2025 and beyond. We continually monitor the implications of patent expiry and have not seen any generic isobaric tags enter the markets so far.

Management of Risk: The Group retains limited but experienced patent capability in house, supplemented by external advice, which has established controls to avoid the release of patentable material before it has filed patent applications.  Maintenance of the existing patent portfolio is subject to review ensuring that its ongoing cost is proportional to its perceived value. We seek to prolong the value of our proprietary technologies by patenting improved chemical tags and superior biomarker panels when we are able to do so, and we monitor the impact of patent expiry by monitoring of market share of licensed products such as TMT^® and TMTpro™.

Section 172 statement

The Board recognises the importance of the Group's wider stakeholders when performing their duties under Section 172(1) of the Companies Act and their duties to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

(a) the likely consequences of any decision in the long term,

(b) the interests of the company's employees,

(c) the need to foster the company's business relationships with suppliers, customers and others,

(d) the impact of the company's operations on the community and the environment,

(e) the desirability of the company maintaining a reputation for high standards of business conduct, and

(f) the need to act fairly as between members of the company.

The Board considers that all their decisions are taken with the long-term in mind, understanding that these decisions need to regard the interests of the company's employees, its relationships with suppliers, customers, the communities and the environment in which it operates.  It is the view of the Board that these requirements are addressed in the Corporate Governance Statement, which can be found on the company's website www.proteomics.com.

For the purpose of this statement detailed descriptions of the decisions taken are limited to those of strategic importance.  The Board believes that two decisions taken during the year fall into this category and were made with full consideration of both internal and external stakeholders as follows:

Investment in developing new products and services.

The board took the decision in 2024 to invest in an internal research project to develop a new 6-plex set of isotopic tags for multiplexed data-independent acquisition (DIA) mass spectrometry.  The board considers that development and innovation in this market sector is important for long term success and expects DIA tags to provide new revenue streams in 2025 and beyond. 

Investment in new instruments

The Board took the decision to invest in additional new instrumentation due to the increased demand for the Groups' services.  The board considers this investment in instruments and consequent additional capacities will be of great benefit to both existing and potential customers.

By Order of the Board

Coveham House

Downside Bridge Road

Cobham

Surrey KT11 3EP

Victoria Birse

Company Secretary

9 April 2025

Consolidated income statement

For the year ended 31 December 2024

Consolidated statement of comprehensive income

For the year ended 31 December 2024

Consolidated balance sheet

As at 31 December 2024