Angle Regulatory News (AGL)

20 Jan 2005 07:00

Angle PLC20 January 2005 For Immediate Release 20 January 2005 ANGLE plc ('ANGLE' or the 'Company') Interim results for the six months ended 31 October 2004 ANGLE plc, the intellectual property and technology commercialisation company,today announces its interim results for the six months ended 31 October 2004. Financial Highlights • Turnover increased 53% to £1.73 million (2003: £1.13 million) • Operating profit on Consulting and Management activities increased by 381% to £0.29 million (2003: £0.06 million) • Expenditure to establish and develop new Ventures increased substantially to £0.84 million (2003: £0.17 million) • Loss before tax increased to £1.37 million (2003: profit £0.01 million) reflecting planned expenditure on new Ventures development and provision for diminution in value of current asset investments of £1.03 million. • Earnings per share loss 8.18p (2003: loss 0.03p) • Cash at bank at half year end £7.25 million (2003: £2,907) • Consulting and Management businesses entered second half year with strong order book of £2.76 million (2003: £1.25 million). Operational Highlights • Acolyte Biomedica prepares for MRSA product launch in May 2005. Government emphasises need for rapid detection in fight against MRSA. Independent hospital analysis of product highly favourable. • NeuroTargets completes collaborative deal with BioFocus plc and appoints new CEO to drive commercialisation of proprietary drug targets. Additional funding secured to support BioFocus collaboration. • Provexis completes product development and establishes relationship with Nutrinnovator plc. Clinical trials demonstrate efficacy of CardioFlow(R) for cardiovascular health and suggest control of cholesterol an additional benefit. Launch of CardioFlow(R) in the form of a juice drink planned for Summer 2005. • Novocellus IVF diagnostic company founded to commercialise revolutionary technology for non-invasive testing of the viability of IVF embryos. • New Heads of Ventures appointed in the UK and US and teams strengthened with new recruits. • Negotiations in progress with major technology corporates, research establishments and universities for commercialisation of their intellectual property and several other potential Progeny(R) Companies under evaluation. Hance Fullerton, Chairman, commented: "ANGLE has made good progress in the growth of its business during the firsthalf of the year. Growth in the Consulting and Management businesses has beenmatched by development of the Ventures business. Our Ventures teams are nowestablished in the UK and US, relationships have been further developed withleading technology organisations and progress made in evaluating and developingnew venture propositions. Following the successful establishment of Novocellusin the first half of the year, we expect to announce the establishment offurther Progeny(R) Companies in the second half. We are also making progresstowards realising value for shareholders from our existing portfolio of Progeny(R) Companies." Enquiries:ANGLE plc 01483 295830Andrew Newland, Chief ExecutiveDawson Buck, Deputy Chief ExecutiveIan Griffiths, Finance Director Buchanan Communications 020 7466 5000Richard Darby, Suzanne Brocks A presentation for analysts will take place today at 10.00am at the offices ofBuchanan Communications, 107 Cheapside, London, EC2V 6DN. Please call BuchananCommunications for more details. Notes to Editors Founded in 1994, ANGLE is an international venture management and consultinggroup focusing on the commercialisation of technology and the development oftechnology-based industry. ANGLE creates, develops and advises technologybusinesses on its own behalf and for its clients. ANGLE is listed on AIM(AGL.L); further information can be found on www.ANGLEplc.com CHAIRMAN'S STATEMENT Introduction During the half year to 31 October 2004, ANGLE made good progress in developingits business in accordance with plans set out at flotation in March 2004. Results In the half year ended 31 October 2004, ANGLE increased turnover by 53% to £1.73million (2003: £1.13 million). The loss before tax was £1.37 million (2003:profit £0.01 million), which was made up of interest of £0.13 million (2003:£3,917) and the following three elements: • Profit before tax on the Consulting and Managementbusinesses increased by 381% to £0.29 million (2003: £0.06 million). • Loss before tax on the Ventures business increased to£0.75 million (2003: £0.05 million). This comprised revenues from existingventures of £0.09 million (2003: £0.12 million) and planned expenditure toestablish and develop new Ventures of £0.84 million (2003: £0.17 million). • A provision for diminution in value of investments of£1.03 million resulting from our holding in Corpora plc. Following itsacquisitions of Exago, Infonic and Algorithmix, and the integration anddevelopment of its product suite, Corpora has recently reported improvingrevenues. The basic earnings per share loss increased to 8.18p (2003: loss 0.03p). Finance At the half year end, ANGLE had cash at bank of £7.25 million (2003: £2,907)reduced from the balance at the start of the year of £8.25 million. Thisreduction reflected planned expenditure to establish and develop new Venturesand working capital requirements for the Consulting and Management businesses. Progeny(R) Companies Significant progress has been made in expanding our Ventures capabilities andactivities. Senior staff have been appointed to lead and develop new Venturesin both the UK and US markets, bringing experience from major corporate,management consulting and venture capital roles. During the period, we established Novocellus to commercialise intellectualproperty developed by the University of York. This company addresses anestimated £250 million p.a. world market for IVF assays and supports the drivefor single embryo transfer. It has the potential to become a standard in allIVF treatment. We are in negotiation in the UK and the US with several major corporates anduniversities to agree the basis for commercialisation of their intellectualproperty. Outlook for the full financial year Trading indicators for the Consulting and Management businesses continue to bestrong and we expect results for the year to be in line with our plans. The existing Progeny(R) Companies, Acolyte Biomedica, NeuroTargets and Provexisare expected to continue to achieve milestone performance and Novocellus isprogressing through our Progeny(R) process. We are reviewing ourcommercialisation plans for IDR Therapeutics given changing market conditions. It is expected that further Progeny(R) Companies will be established in thesecond half of the year. Profitability in the Ventures side of the business for the year is dependent onthe timing of realisation of existing Progeny(R) Companies. The Group continuesto actively work with its Progeny(R) Companies to build value and develop themtowards trade sale or IPO at an appropriate time in their development. Hance Fullerton Chairman OPERATIONS SUMMARY Founded in 1994, the Group's integrated business model combines itsrevenue-earning Consulting and Management businesses with its capital-growthVentures business: • Consulting: consulting on the commercialisation oftechnology, including consulting for major corporations, SMEs, regional andnational economic development agencies and governments; • Management: taking direct management responsibility foractivities such as the operation of research parks and technology incubators andthe management of innovation and product development programmes; and • Ventures: establishment and ownership of significantequity stakes in a portfolio of technology companies (Progeny(R) Companies),primarily in the biotechnology, electronics and IT sectors, with a view torealising value in the medium to long term. ANGLE has built profitable Consulting and Management businesses in the UK, USand Middle East, providing revenue and expert in-house staff capability as wellas the opportunity to build important relationships with corporates, governmentresearch establishments and universities. The relationships with owners ofintellectual property are a key channel for the Group to identify and exploitopportunities to commercialise intellectual property using its proprietaryProgeny(R) process. The Consulting and Management businesses have performed strongly during the halfyear. Fees increased 62% to £1.64 million (2003: £1.01 million) resulting in aprofit of £0.29 million (2003: £0.06 million) and an operating profit margin of17.5% (2003: 5.9%). A number of major contracts were secured during the yearand the order book is strong at £2.76 million (2003: £1.25 million). The Ventures business made good progress during the half year. The managementteams in the UK and US were both strengthened with new recruits, and expenditureon the development of new ventures was progressed in accordance with the plansset out at the time of flotation. During the period, ANGLE founded its first new venture business since flotation,Novocellus Limited. Currently 100% owned by ANGLE, Novocellus has an exclusiveoption (in accordance with the Progeny(R) process) to intellectual property fromthe University of York, which will enable doctors to identify the viability ofembryos leading to successful pregnancy in the first stage of IVF treatment.The technology, based on a non-invasive analysis of the embryo's amino acidprofile, has the potential to deliver major financial and emotional costbenefits by making single embryo transfer a realistic target and therebyreducing the incidence of multiple births and increasing the likelihood ofsuccessful IVF treatment. The Company's ongoing strategy is to create more Progeny(R) Companies in thebiosciences, electronics, optronics, IT, materials, nanotechnology and softwaresectors. Going into 2005 the Ventures opportunity pipeline is strong. ANGLE'sbusiness model, high calibre management and its Progeny(R) process have beenrecognised by many potential technology partners as bridging a critical gap intheir intellectual property exploitation options. As a result ANGLE isevaluating new Venture opportunities with several of the UK's and US's toptechnology universities, key research organisations and FTSE 100 / Fortune 500businesses. Substantial progress has been made in the half year in developingthese business relationships and building new Ventures propositions. It isexpected that further Progeny(R) businesses will be formed in the second half ofthe year. During the half year, good progress was made with ANGLE's other Progeny(R)Companies, including: • Acolyte Biomedica A medical technology company developinga range of products for rapid detection of sepsis, blood infections andantibiotic resistance. ANGLE's equity stake at the period end is 10.65%. Thecompany's technology, BacLite(R) uses AK rapidTM technology developed by theDefence Science and Technology Laboratories (Dstl), an agency of the Ministry ofDefence at Porton Down, Wiltshire. The Company has demonstrated throughindependent hospital analysis that it can detect hospital-acquired and otherserious infections in hours rather than days using its cost-effective BacLite(R)platform. Acolyte is preparing to launch its first product - a rapidmicrobiology test for MRSA, "the hospital super-bug", in May 2005. BacLite(R)rapid MRSA provides results in only 5 hours, which means that carriers of thebacterium can be isolated quickly, thus preventing the spread of infection.Rapid diagnosis also greatly improves the efficacy of treatment. BacLite(R)rapid MRSA provides hospitals with a cost effective tool to help achieve new UKGovernment targets for a 50% reduction in MRSA levels by 2008.www.acolytebiomedica.com • IDR Therapeutics A drug redevelopment company based inCharlottesville, Virginia that redesigns drugs to remove toxic side effects.ANGLE has a 64% stake. Major pharmaceutical companies have a strong need tobolster drug pipelines and deal with late stage failures or subsequent sideeffects. However, there have been changes in the dynamics of drug developmentthat have impacted our original commercialisation plans. ANGLE is presentlyreviewing its commercialisation plan for IDR Therapeutics. It is expected thatthis review will be completed by the year end. • NeuroTargets A functional genomics company set up todiscover and develop new drugs to treat diseases related to nerve damage.ANGLE's equity in NeuroTargets at the period end is 29.41%. During the half yearadditional funding was secured and a collaborative agreement was signed withBioFocus plc to develop compounds focusing on pain relief and nerveregeneration. At the same time a new CEO was appointed to drivecommercialisation of the proprietary drug targets. www.neurotargets.co.uk • Provexis A nutraceutical company that develops functionalfoods, supplements and medical foods to improve cardiovascular health. ANGLE'sequity in Provexis at the period end is 32.02%. Clinical trials weresuccessfully completed during the half year. Provexis is launching its firstproduct in Summer 2005, a juice drink containing CardioFlow(R) (the company'spatented natural fruit extract which has been proven in human trials to "thin"the blood and benefit the circulation). Provexis has collaborated with theRowett Institute (a leading human nutrition research centre) over a four yearperiod to develop and clinically test CardioFlow(R). Provexis is collaboratingwith Nutrinnovator plc to access their retail expertise in launching theproduct. www.provexis.com Following the sale of our Progeny(R) Company Exago to Corpora plc in a share forshare exchange, ANGLE retains a holding of 16.82% at the period end in Corpora.Corpora plc is an AIM traded information management company supporting users ofdata to find, distil and learn the information they need, when they need it.The company's software solutions address geographically dispersed, informationintensive organisations such as government, finance, legal and pharmaceutical.www.corporaplc.com ANGLE PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 Note Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ TurnoverConsulting and Management 1,642,682 1,013,099 2,656,553Ventures 88,612 118,117 219,257 _________ _________ _________ 1,731,294 1,131,216 2,875,810 Operating costsConsulting and Management (1,355,025) (953,281) (2,228,087)Ventures (839,838) (167,946) (674,918) _________ _________ _________ (2,194,863) (1,121,227) (2,903,005)Other operating incomeVenturesProfit on disposal of investments - - 2,309,281 Operating profit / (loss)Consulting and Management 287,657 59,818 428,466Ventures (751,226) (49,829) 1,853,620 _________ _________ _________ (463,569) 9,989 2,282,086 Provision for diminution in value ofcurrent asset investments 5 (1,032,127) - - Net interest 130,094 3,917 46,384 _________ _________ _________Profit / (loss) on ordinary activitiesbefore taxation (1,365,602) 13,906 2,328,470 Tax on profit / (loss) on ordinary activities 3 - (17,000) (37,850) _________ _________ _________ Retained profit / (loss) for the year (1,365,602) (3,094) 2,290,620 ========== ========== ==========Earnings per share 4Basic (pence per share) (8.18) (0.03) 20.43Diluted (pence per share) (8.18) (0.03) 19.45 The profit and loss account has been prepared on the basis that all operationsare continuing operations. ANGLE PLC CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Retained profit / (loss) for the year (1,365,602) (3,094) 2,290,620 Currency translation differences 756 - (26,647) _________ _________ _________ Total gains and losses recognised in the period (1,364,846) (3,094) 2,263,973 ========== ========== ========== ANGLE PLC CONSOLIDATED BALANCE SHEET AS AT 31 OCTOBER 2004 Note Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Fixed assetsTangible assets 59,209 31,411 31,959Investments 622,904 360,464 516,782 _________ _________ ________ 682,113 391,875 548,741Current assetsInvestments 5 1,366,050 - 2,398,177Debtors - due within one year 754,607 777,154 625,503Debtors - due after one year 239,570 - 239,570Cash at bank and in hand 7,247,827 2,907 8,246,871 _________ _________ ________ 9,608,054 780,061 11,510,121Creditors: amount falling duewithin one year (665,829) (588,787) (1,063,116) _________ _________ ________Net current assets 8,942,225 191,274 10,447,005 _________ _________ ________Total assets less current liabilities 9,624,338 583,149 10,995,746 Creditors: amounts falling dueafter more than one year (2,446) (10,488) (6,354) _________ _________ ________ Net assets 9,621,892 572,661 10,989,392 ========== ========== ========= Capital and reservesCalled up share capital 1,669,648 1,027,732 1,669,648Share premium account 7,534,677 2,553,356 7,537,331Profit and loss account (2,135,789) (3,008,427) (770,943)Other reserves 2,553,356 - 2,553,356 _________ _________ _______ Shareholders' funds - equity interests 6 9,621,892 572,661 10,989,392 ========== ========== ========= ANGLE PLC CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Net cash inflow / (outflow) from operating activities (977,085) (251,614) 48,592 Returns on investment and servicing of financeInterest received 134,037 230 10,960Interest paid (1,816) (2,913) (7,307) ________ ________ _______Net cash inflow / (outflow) from returns oninvestment and servicing of finance 132,221 (2,683) 3,653 Capital expenditure and financial investmentPayments to acquire tangible fixed assets (39,188) - (15,218)Proceeds on disposal of tangible fixed assets - 1,542 650Purchase of investments (106,122) - (106,317) ________ ________ _______Net cash inflow / (outflow) for capitalexpenditure and financial investment (145,310) 1,542 (120,885) Acquisitions and disposalsNet cash disposed of with subsidiaries - - - ________ ________ _______Net cash outflow from acquisitions and disposals - - - Equity dividends paid - - - _______ _______ _______Net cash outflow before managementof liquid resources and financing (990,174) (252,755) (68,640) FinancingIssue of ordinary share capital (2,654) - 8,269,775Capital element of finance lease contracts (6,216) (10,354) (20,212) ________ ________ ________Net cash inflow / (outflow) from financing (8,870) (10,354) 8,249,563 ________ ________ ________ Increase / (decrease) in cash in the year (999,044) (263,109) 8,180,923 ========= ========= ========= ANGLE PLC NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 C1 Reconciliation of operating loss to net cash outflow from operating activities Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Operating profit / (loss) (1,495,696) 9,989 2,282,086Depreciation of tangible fixed assets 11,790 15,874 30,823Loss / (profit) on disposal of tangiblefixed assets - (1,123) 118(Increase) / decrease in current asset investments 1,032,127 - (2,398,177)(Increase) / decrease in debtors (131,232) (186,628) (332,361)Increase / (decrease) in creditors within one year (394,074) (89,726) 466,103 _________ _________ ________Net cash inflow / (outflow) fromoperating activities (977,085) (251,614) 48,592 ========== ========== ========= C2 Analysis of net funds 1 May Cash flow Other non- 31 October 2004 cash changes 2004 (Audited) (Unaudited) (Unaudited) (Unaudited) £ £ £ £ Net cash:Cash at bank and in hand 8,246,871 (999,044) - 7,247,827 Debt:Finance leases (16,891) 6,216 - (10,675) ________ ________ ________ ________ Net funds 8,229,980 (992,828) - 7,237,152 ========= ========= ========= ========= C3 Reconciliation of net cash flow to movements in net (debt) / funds Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Increase / (decrease) in cash in the period (999,044) (263,109) 8,180,923Cash outflow from reduction in debt 6,216 10,354 20,212New finance leases - (6,764) (6,764)Exchange differences - - (26,647) ________ ________ ________Movement in net (debt) / funds in the year (992,828) (259,519) 8,167,724Opening net funds 8,229,980 56,245 62,256 ________ ________ ________ Closing net funds 7,237,152 (203,274) 8,229,980 ========= ========= ========= ANGLE PLC NOTES TO THE FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 1 Basis of preparation The interim financial statements, which do not constitute statutory accountswithin the meaning of section 240 of the Companies Act 1985, have been preparedon the basis of the accounting policies set out in the statutory accounts of theGroup for the year ended 30 April 2004. The interim financial statements, whichwere approved by the directors on 19 January 2005, are unaudited but have beenreviewed in Accordance with Auditing Practices Board Bulletin "Review of InterimFinancial Information" by the auditors. Comparative figures for the year ended 30 April 2004 are an abridged version ofthe Group's full accounts which carry an unqualified audit report and have beendelivered to the Registrar of Companies. 2 Compliance with accounting standards The Financial Statements are prepared in accordance with the CompaniesAct 1985 and applicable United Kingdom accounting standards. The directors have, in accordance with sections 226 and 227 of theCompanies Act 1985, departed from the standard format of the profit and lossaccount in presenting the financial statements. Profits and losses on disposalsof fixed asset investments, and provisions for diminution in value of fixedasset investments are included in "Other operating income" within operatingprofit as these represent a return from a principal class of business activity.Other material disposals that are not part of the main business activities areshown below operating profit in accordance with the Companies Act 1985 and FRS3- Reporting Financial Performance. Examples of such material disposals includefixed assets, such as property, or current asset investments, such as listedshares held for disposal in the short term. 3 Tax The Group is eligible for and takes advantage of the substantial shareholdingsrelief UK corporation tax exemption. This results in the gain from anydisposals of UK investments where the Group has an equity stake greater than10%, and subject to certain other tests, being free of corporation tax.Tax is therefore based on the net of profits in the Consulting andManagement businesses as relieved by losses incurred in the establishment anddevelopment of new Ventures. 4 Earnings per share The basic and fully diluted earnings per share is calculated on anafter tax loss of £1.37 million (6 months to 31 October 2003: loss £3,094, yearto 30 April 2004: profit £2.29 million). The basic earnings per share is based on 16,696,484 weighted averageordinary 10p shares (6 months to 31 October 2003: 10,277,317 year to 30 April2004: 11,209,904). Shares options are non-dilutive for the period because ofthe loss. The fully diluted earnings per share is based on 16,696,484 weightedaverage ordinary 10p shares (6 months to 31 October 2003: 10,277,317, year to30 April 2004: 11,775,197). ANGLE PLC NOTES TO THE FINANCIAL INFORMATION (Continued) FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 5 Current asset investments Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Net Book value 2,398,177 - -Additions - - 2,398,177Provision for diminution in value (1,032,127) - - _________ _________ _________ Net Book value 1,366,050 - 2,398,177 ========== ========== ========== Market valueListed investments at period end 1,366,050 - 2,549,961 Current asset investments are valued at the lower of cost andmid-market value at the balance sheet date. They comprise shares in Corpora plcwhich is listed on the London Stock Exchange' Alternative Investment Market. 6 Reconciliation of movement in shareholders' funds Group Six months ended Year ended 31 October 31 October 30 April 2004 2003 2004 (Unaudited) (Unaudited) (Audited) £ £ £ Profit / (loss) for the period (1,365,602) (3,094) 2,290,620Conversion of warrants - - 16,916Gross proceeds from issue of shares - - 9,000,000Issue expenses (2,654) - (837,669)Currency translation differences 756 - (26,647) _________ _________ _________Net addition / (reduction) to shareholders'funds (1,367,500) (3,094) 10,443,220 Opening shareholders' funds 10,989,392 575,755 546,172 _________ _________ _________ Closing shareholders' funds 9,621,892 572,661 10,989,392 ========= ========= ========= 7 Shareholder communications The announcement is being sent to all shareholders on the register on 19 January2005. Copies of this announcement are posted on the Company's websitewww.ANGLEplc.com and are available from Buchanan Communications and theCompany's registered office: Surrey Technology Centre, Surrey Research Park,Guildford, GU2 7YG. ANGLE PLC INDEPENDENT REVIEW REPORT TO ANGLE PLC FOR THE SIX MONTHS ENDED 31 OCTOBER 2004 Introduction We have been instructed by the company to review the financial information setout on pages 7 to 13 and we have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for thecompany for the purpose of their interim report and for no other purpose. We donot, therefore in producing this report, accept or assume responsibility for anyother purpose or to any other person to whom this report is shown or into whosehands it may come save where expressly agreed by our prior consent in writing. Directors' Responsibilities The interim statement, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the Interim Statement in accordance with theAlternative Investment Market Rules which require that the accounting policiesand presentation applied to the interim figures must be consistent with thosethat will be adopted in the company's annual accounts. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board as if that Bulletin applied. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly we do not express an audit opinionon the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 October 2004. BAKER TILLY Chartered Accountants Guildford This information is provided by RNS The company news service from the London Stock Exchange