Angle Regulatory News (AGL)

31 Jan 2007 07:02

Angle PLC31 January 2007 For Immediate Release 31 January 2007 ANGLE plc ('ANGLE' or the 'Company') Interim Results for the Six Months Ended 31 October 2006 ANGLE plc, the intellectual property and technology commercialisation company,announces its unaudited interim results for the six months ended 31 October2006. Key Points • Further progress with the existing controlled investments(1) portfolio. In particular, Geomerics and Synature made progress towards revenue generation. • Geomerics launched its leading edge computer graphics product and has been invited to join Microsoft's X-Box 360 Tools Program. • Synature launched its internet personalisation product, securing beta customers in social networking and internet retailing. • Measured expansion of controlled investments portfolio. Two new companies were established during the half year, Kaloptics in the field of computer animation special effects and Parsortix in the field of prenatal diagnostics. • Loss before tax £4.9 million (2005: £0.8 million) after: • expenditure on controlled investments in the half year was increased by 82% to £1.4 million (2005: £0.8 million). • operating costs to establish, develop and create value in Progeny(R) companies were increased by 43% to £1.4 million (2005: £1.0 million). • a decrease in fair value of non-controlled investments(2) of £1.9 million (2005: profit £1.2 million). • 20 year Progeny(R) Partnership signed in July 2006 with the University of Reading giving ANGLE the exclusive rights to commercialise intellectual property developed by the University. • Board strengthened with the appointment of Garth Selvey as a Non Executive Director on 8 September 2006. • ANGLE is also pleased to announce today that: • Gary Lewis, recently Chief Operating Officer of Take Two, a leading worldwide publisher, developer and distributor of interactive entertainment software and accessories, has joined Geomerics as Chief Executive. • Although not yet concluded, Novocellus' interim clinical trials analysis supports the pilot study evidence that its technology has the potential to increase the success rates of IVF treatment. • Synature has secured its first commercial contract with a leading player in the package holidays market. 1 Controlled investments are Progeny(R) companies where the Groupowns a controlling equity position. Under IFRS, these are consolidated. Thecosts of this investment are charged to the income statement and the resultantfair value is not placed on the balance sheet. 2 Non-controlled investments are Progeny(R) companies where theGroup does not own a controlling equity position and include those that haveprogressed to quoted status. Hance Fullerton, Chairman, commented: "ANGLE has made further progress in the development of its Progeny(R) companiesduring the first half of the year and a number of the companies are nowmaturing. The major focus now is on realising the value created in thecontrolled investments portfolio." Enquiries:ANGLE plc 01483 295830Andrew Newland, Chief ExecutiveIan Griffiths, Finance Director Buchanan Communications 020 7466 5000Richard Darby, Suzanne Brocks, James Strong A presentation for analysts will take place today at 10.00am at the offices ofBuchanan Communications, 45 Moorfields, London, EC2Y 9AE. 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 ANGLE PLCCHAIRMAN'S STATEMENT Introduction ANGLE has continued to invest in the development of its Progeny(R) companyportfolio. The portfolio now comprises eleven companies, seven of which arecontrolled, within technology sectors ranging from medical sciences to software.We believe that the portfolio offers the potential for substantial returns onour investment. Results During the half year ended 31 October 2006, we have significantly increased thelevel of investment in expanding and developing the controlled investments(1)portfolio. As a result the portfolio has matured and increased in value. The loss before tax for the half year of £4.9 million (2005: £0.8 million), aloss per share of 17.5p (2005: 4.8p), is as a result of: • expenditure on controlled investments in the half year increasing by 82% to £1.4 million (2005: £0.8 million). Cumulative expenditure on controlled investments at 31 October 2006 was £3.9 million (2005: £1.0 million); • operating costs to establish, develop and create value in Progeny(R) companies increasing by 43% to £1.4 million (2005: £1.0 million); • a decrease in fair value of non-controlled investments(2) of £1.9 million (2005: profit £1.2 million); • a loss on the consulting and management business of £0.1 million, unchanged from 2005, as a result of poor performance in the UK. Progeny(R) companies During the half year, increased expenditure on controlled investments deliveredprogress against commercial milestones for existing portfolio companies andallowed the establishment of two new companies. ANGLE now has a portfolio ofeleven companies developed using our Progeny(R) process. Our objective is to realise value from the existing portfolio of Progeny(R)companies to generate profits for the Group and provide financial resources fordevelopment of future Progeny(R) companies. 1 Controlled investments are Progeny(R) companies where the Groupowns a controlling equity position. Under IFRS, these are consolidated. Thecosts of this investment are charged to the income statement and the resultantfair value is not placed on the balance sheet. 2 Non-controlled investments are Progeny(R) companies where theGroup does not own a controlling equity position and include those that haveprogressed to quoted status. Board Appointment Garth Selvey was appointed to the Board as a Non Executive Director with effectfrom 8 September 2006. Mr Selvey is a technology industry executive with overtwenty years of senior management experience. From 1996 to 2006, he was ChiefExecutive of Comino Group plc prior to its acquisition by Civica plc. Outlook for the full financial year We will work with our existing Progeny(R) companies to deliver furthercommercial progress, whilst seeking to realise value from our existinginvestments. Hance FullertonChairman30 January 2007ANGLE PLCOPERATIONS SUMMARY Introduction During the half year, ANGLE focused on the development of its controlledinvestments(1) portfolio through the establishment of two new companies and thefurther investment in the existing portfolio. Non-controlled investments It was disappointing that, during the half year, the value of ANGLE's quotednon-controlled investments(2) in Corpora plc and Provexis plc fell to £3.0million (2005: £3.8 million). ANGLE holds these AIM-listed investmentsfollowing their successful development under the Progeny(R) process. The marketfor small cap stocks has been weak during the period and the share prices ofboth companies have fallen notwithstanding the fact that they have announcedprogress in their businesses. The fair value of ANGLE's unquoted non-controlled investments, Acolyte Biomedicaand NeuroTargets increased to £1.7 million (2005: £1.5 million). Controlled investments Whilst their fair value is not shown on ANGLE's balance sheet, the majority ofthe value of the ANGLE portfolio is within the controlled investments, whichcomprises majority stakes in seven companies. Expenditure on controlledinvestments in the first half increased by 82% to £1.4 million (2005: £0.8million), with cumulative expenditure on controlled investments at 31 October2006 at £3.9 million (2005: £1.0 million). In-house expenditure to establish,develop and create value in Progeny(R) companies was also increased by 43% to£1.4 million (2005: £1.0 million). New portfolio investments This increased level of investment represents a sustained effort to build valuein the portfolio. During the half year, two new companies were founded: • Kaloptics is commercialising technology from New York University utilising a patent-pending kaleidoscope and software system that enables the rapid capture and recreation of photo-realistic surface images. The technology has a wide range of commercial applications in high value industries, including special effects, animation, computer gaming and medical devices. 1 Controlled investments are Progeny(R) companies where the Groupowns a controlling equity position. Under IFRS, these are consolidated. Thecosts of this investment are charged to the income statement and the resultantfair value is not placed on the balance sheet. 2 Non-controlled investments include those that have progressed toquoted status and are Progeny(R) companies where the Group does not own acontrolling equity position. • Parsortix is the first company resulting from our preferred commercialisation partner agreement with Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP/SEP). Parsortix has secured intellectual property that has the potential to change the $600 million global market for prenatal diagnostics by eliminating the need for invasive procedures during maternity. Early definitive diagnosis for chromosomal abnormalities such as spina bifida and Down's syndrome, as well as other disorders due to genetic abnormalities, can help physicians better care for both the mother and the foetus during pregnancy. Existing portfolio update Good progress was made in developing the existing companies and notablemilestones were: • Aberro evaluated its software testing product with beta customers during the half year and identified a number of enhancements, which would be attractive to a larger population of customers. The relevant development work is in progress and the enhanced product range is expected to be launched in the Summer. See www.aberrosoftware.com for product details. • Geomerics developed its radiosity product during the half year, which utilises its technology to provide rapid computation of light reflection and refraction in computer animation. This provides greater realism in computer games. A demonstration can be seen on www.geomerics.com. The radiosity product has been well received by the market and Geomerics is in discussions with a wide range of potential customers and has been invited to join Microsoft's X-Box 360 Tools program. • Novocellus progressed its clinical trials process during the half year to test the effectiveness of its embryo viability testing technology. A number of challenges were faced during the clinical trials process but these have now been addressed. It is expected that Novocellus' technology will improve current IVF rates by at least a third which will facilitate the move to routine single embryo transfer and thereby prevention of multiple births. Since the half year end, Novocellus has announced interim results from the trials. Further progress with the study will be necessary for statistical significance, nevertheless the interim data broadly confirms the pilot study findings regarding the effectiveness of Novocellus' technology. • Synature launched its internet personalisation products during the half year. These have been adopted by beta customers in social networking and internet retailing. Since the half year end, Synature has announced its first commercial sale of product to a leading player in the package holidays market, who are using the product to make holiday recommendations to customers of their web site. See www.synature.com for more information. Pipeline and Partnerships The pipeline of new companies remains strong and there are several new companiesunder consideration. ANGLE continues to be highly selective in the companies itdevelops and the rate of establishment of new Progeny(R) companies is carefullycontrolled in accordance with the investment capital available. At ANGLE's Showcase of its IP and Development Pipeline at the University ofReading on 28 November 2006, the Company updated the audience on ANGLE's 20 yearstrategic partnership with the University of Reading as announced on 27 July2006. The University of Reading is a top 200 world university and a top 10 UKresearch-intensive university with £162 million income in 2006/07, 17,500students and 4,000 staff. Work is under way to expand the number of relationships with major technologypartners. In particular, ANGLE is in discussions with a number of other UKuniversities, with whom further long term exclusive Progeny(R) Partnerships maybe established. The consulting and management business is a platform for our ventures activity,providing access through consulting relationships to IP opportunities as well asproviding market credibility with IP owners. The fee income of £1.8 million forthe half year (2005: £2.0 million) contributes to the Group's infrastructurecosts enabling ventures activities to be more cost effective. The UK consultingdivision has under-performed and we are reviewing its positioning to determinehow best it may support our venturing activity in the future. Outlook The market for the commercialisation of IP remains strong. The concentration ofthe ANGLE business model on the provision of experienced management is welldifferentiated and yields many opportunities for the Company going forward. ANGLE PLCCONSOLIDATED INTERIM INCOME STATEMENTFOR THE SIX MONTHS ENDED 31 OCTOBER 2006 Note Six months ended Year ended 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £ Turnover 3 1,799,113 2,016,036 4,092,867 InvestmentsChange in fair value 6 (1,891,088) 1,226,768 2,377,772 Operating costsConsulting and Management (1,862,293) (2,058,582) (3,995,530)Ventures (1,399,779) (978,832) (2,471,626)Controlled investments (1,417,592) (777,957) (2,217,568)Share based payments (222,241) (173,120) (381,884)Restructuring charges - (200,221) (203,740) _________ _________ _________ (4,901,905) (4,188,712) (9,270,348) Operating profit / (loss) (4,993,880) (945,908) (2,799,709) Net finance income 122,354 110,539 131,969 _________ _________ _________Profit / (loss) before tax (4,871,526) (835,369) (2,667,740) Loss before controlled investments (3,454,448) (57,412) (460,946)and tax Controlled investments (1,417,078) (777,957) (2,206,794) Tax 4 131,777 43,297 142,023 _________ _________ _________ Profit / (loss) for the period (4,739,749) (792,072) (2,525,717) ========== ========== ==========Earnings / (loss) per share 5 Basic and Diluted (pence per share) (17.47) (4.75) (14.36) ANGLE PLC CONSOLIDATED BALANCE SHEETAS AT 31 OCTOBER 2006 Note Six months ended Year ended 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £ASSETSNon-current assetsNon-controlled investments 6 1,732,831 1,465,749 1,642,051Property, plant and equipment 140,750 165,228 147,414Intangible assets 7,713 3,875 3,575 _________ _________ _________Total non-current assets 1,881,294 1,634,852 1,793,040 Current assetsNon-controlled investments 6 2,976,989 3,787,629 4,868,077Trade and other receivables 7 1,474,108 1,112,285 1,224,658Cash and cash equivalents 4,327,383 3,266,363 8,234,853 _________ _________ _________Total current assets 8,778,480 8,166,277 14,327,588 _________ _________ _________Total assets 10,659,774 9,801,129 16,120,628 ========== ========== ==========EQUITY AND LIABILITIESEquityIssued capital 2,713,293 1,670,648 2,713,293Share premium account 13,701,935 7,381,864 13,701,935Share based payment reserve 1,141,117 710,112 918,876Other reserves 2,553,356 2,553,356 2,553,356Translation reserve (99,499) (14,377) (73,159)Retained earnings (10,052,704) (3,579,310) (5,312,955)ESOT shares (370,000) (20,000) (20,000) _________ _________ _________Total equity 9,587,498 8,702,293 14,481,346 _________ _________ _________LiabilitiesNon-current liabilitiesObligations under finance leases 13,681 36,485 27,363Current liabilitiesTrade and other payables 1,040,165 1,041,666 1,592,362Obligations under finance leases 18,430 20,685 19,557 _________ _________ _________Total current liabilities 1,058,595 1,062,351 1,611,919 _________ _________ _________Total liabilities 1,072,276 1,098,836 1,639,282 _________ _________ _________Total equity and liabilities 10,659,774 9,801,129 16,120,628 ========== ========== ========== ANGLE PLC CONSOLIDATED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 31 OCTOBER 2006 Six months ended Year ended 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £Operating activitiesOperating profit / (loss) (4,993,880) (945,908) (2,799,709)Depreciation of property, plant and equipment 29,227 21,308 49,294Amortisation of intangible assets 1,898 1,707 1,707(Profit) / loss on disposal of property 429 - 1,059Exchange differences (50,268) 28,210 (30,295)(Increase) / decrease in trade and other receivables (199,415) 47,473 (431)Increase / (decrease) in trade and other payables (438,481) 307,635 855,183Change in fair value of non-controlled investments 1,891,088 (1,226,768) (2,377,772)Share based payments 222,241 173,120 381,884 ________ ________ ________Net cash from operating activities (3,537,161) (1,593,223) (3,919,080) Investing activitiesPurchase of property, plant and equipment (24,755) (50,155) (61,242)Purchase of intangible assets (5,188) (820) (820)Purchase of non-controlled investments - (592,016) (698,018)Provision of convertible loans (90,780) (100,000) (100,000)Purchase of ESOT shares (350,000) (20,000) (20,000)Net interest received 129,478 91,600 136,312 ________ ________ ________Net cash used in investing activities (341,245) (671,391) (743,768) Financing activitiesNet proceeds from issue of share capital (14,255) - 7,376,972Capital elements of finance lease contracts (14,809) (3,911) (14,159) ________ ________ ________Net cash from financing activities (29,064) (3,911) 7,362,813 Net increase / (decrease) in cash & cash equivalents (3,907,470) (2,268,525) 2,699,965 Cash and cash equivalents at start of period 8,234,853 5,534,888 5,534,888 ________ ________ ________Cash and cash equivalents at end of period 4,327,383 3,266,363 8,234,853 ========= ========= ========= ANGLE PLC CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 31 OCTOBER 2006 Attributable to equity holders of the Group Share based Issued Share payment Other Translation Retained ESOT Total capital premium reserve reserves reserve earnings shares equity (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) £ £ £ £ £ £ £ £ At 1 May 2005 1,670,648 7,381,864 536,992 2,553,356 (42,990) (2,787,238) - 9,312,632For the period to 31October 2005Consolidated profit 28,613 (792,072) (763,459)/ (loss)Share based payments 173,120 173,120ESOT shares (20,000) (20,000) ________ ________ ________ ________ ________ ________ ________ ________ At 31 October 2005 1,670,648 7,381,864 710,112 2,553,356 (14,377) (3,579,310) (20,000) 8,702,293For the period to 30April 2006Consolidated profit (58,782) (1,733,645) (1,792,427)/ (loss)Share based payments 208,764 208,764Issue of share 1,042,645 6,320,071 7,362,716capital (net) ________ ________ ________ ________ ________ ________ ________ ________ At 1 May 2006 2,713,293 13,701,935 918,876 2,553,356 (73,159) (5,312,955) (20,000) 14,481,346For the period to 31October 2006Consolidated profit (26,340) (4,739,749) (4,766,089)/ (loss)Share based payments 222,241 222,241ESOT shares (350,000) (350,000) ________ ________ ________ ________ ________ ________ ________ ________ At 31 October 2006 2,713,293 13,701,935 1,141,117 2,553,356 (99,499) (10,052,704) (370,000) 9,587,498 ========== ========== ========== ========== ========= =========== ========== ========== Share based payment reserve The share based payment reserve account is used for the corresponding entry tothe share based payments charged through the income statement. Transfers aremade from this reserve to retained earnings as the related share options areexercised, lapse or expire. Translation reserve The translation reserve account comprises cumulative exchange differencesarising on consolidation from the translation of the financial statements ofinternational operations. Under IFRS this is separated from retained earnings. ESOT shares These relate to shares purchased by the ANGLE Employee Share Ownership Trust. ANGLE PLC NOTES TO THE INTERIM FINANCIAL INFORMATIONFOR THE SIX MONTHS ENDED 31 OCTOBER 2006 1 Basis of preparation and accounting policies The interim financial information in this document does not constitute statutoryfinancial statements for the purposes of s240 of the Companies Act 1985. Thestatutory financial statements for the year ended 30 April 2006 ("Report andAccounts 2006") have been filed with the Registrar of Companies. The auditor'sreport on those financial statements, which were prepared in accordance withInternational Financial Reporting Standards (IFRS) as adopted by the EuropeanUnion (EU), was unqualified and did not contain statements under section 237(2)or 237(3) of the Companies Act 1985. This interim financial information is the unaudited interim consolidatedfinancial statements (the "Interim Financial Statements") of ANGLE plc, acompany incorporated in Great Britain and registered in England and Wales, andits subsidiaries (together referred to as the "Group") for the six month periodended 31 October 2006 (the "interim period"). The interim financial statementsare unaudited but have been reviewed by the Auditors in accordance with AuditingPractices Board Bulletin 1999/4 "Review of Interim Financial Information" by theauditors. The Interim Financial Statements have been prepared in accordance withInternational Accounting Standard 34 Interim Financial Reporting ("IAS 34"), asadopted by the EU, and on the basis of the accounting policies set out in theReport and Accounts 2006. The presentation of the Interim Financial Statementsis consistent with the Report and Accounts 2006. Where necessary, comparativeinformation has been reclassified or expanded from the previously reportedInterim Financial Statements to take into account any presentational changesmade in the Report and Accounts 2006. The Interim Financial Statements were approved by the Board and authorised forissue on 30 January 2007. Critical accounting estimates and judgements The preparation of the Interim Financial Statements requires the use ofestimates and assumptions that affect the reported amounts of assets andliabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Although these estimates andassumptions are based on management's best knowledge of the amount, event oractions, actual results ultimately may differ from those estimates. The estimates and assumptions that have a significant risk of causing amaterial adjustment to the carrying amounts of assets and liabilities relate tothe valuation of the non-controlled unquoted investments which are held at fairvalue in accordance with IAS39 and on the basis of the accounting policies inthe Report and Accounts 2006. 2 Summary segmental analysis The Group operates in one principal area of activity - technologywealth creation through the commercialisation of intellectual property and thedevelopment of technology industry. The primary business segments are: • Consulting and Management - provision of consulting and management services to clients including research organisations, corporate and governmental organisations on a fee-for-service basis. This business segment provides a platform for the Ventures activities. • Ventures - activities to establish, develop and create value in technology companies. The Group uses a proprietary Progeny(R) process to develop these companies, which are referred to as Progeny(R) companies. ANGLE's unique business model involves ANGLE founding new companies which it controls during the critical early stages of development, before securing third party funding. Under IFRS, the accounting for Progeny(R) companies divides into controlled investments and non-controlled investments. o Controlled investments - Progeny(R) companies where the Group has control, typically as a result of owning in excess of 50% of the equity. These are consolidated and the Group's investment costs are expensed in the Income Statement. o Non-controlled investments - Progeny(R) companies where the Group does not have control. These investments are held on the balance sheet at fair value, with changes in fair value passing through the Income Statement. The nature of these operations is significantly different. The primary formatand segmentation by class of business has been provided on the face of theConsolidated Income Statement. 3 Turnover The breakdown of turnover by business segment is set out below. Six months ended Year ended 31 October 31 October 30 April 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £ £ £TurnoverConsulting and Management 1,792,290 1,965,152 4,022,092Ventures 6,308 50,884 60,000Controlled investments 515 - 10,775 _________ _________ _________ 1,799,113 2,016,036 4,092,867 ========== ========== ========== Turnover from Consulting and Management represents fees received from clientsfor consulting and management services. Turnover from Ventures represents feesreceived from the non-controlled investments for accounting and other servicesprovided by the Company until those companies take those activities in-house.Turnover from controlled investments represents the turnover of thosebusinesses, which is consolidated prior to the company becoming non-controlled. 4 Tax The Group is eligible for the substantial shareholdings relief UK corporationtax exemption. This results in the gain from any disposals of UK investmentswhere the Group has an equity stake greater than 10%, subject to certain othertests, being free of corporation tax. Tax is therefore based on the profits inthe Consulting and Management businesses as relieved by losses incurred in theestablishment and development of new Ventures. Controlled investments undertake research and development activities. In the UKthese activities qualify for tax relief and result in tax credits. 5 Earnings / (loss) per share The basic and fully diluted earnings / (loss) per share is calculatedon an after tax loss of £4.7 million (6 months to 31 October 2005: loss £0.8million, year to 30 April 2006: loss £2.5 million). The basic and fully diluted earnings / (loss) per share are based on27,132,934 weighted average ordinary 10p shares (6 months to 31 October 2005:16,688,884, year to 30 April 2006: 17,584,521). Share options are non-dilutivefor the period. 6 Non-controlled investments The Group's investment portfolio comprises investments in Progeny(R)companies. Where the Group has control of a Progeny(R) company (typically owningmore than 50% of the equity), these are controlled investments and areconsolidated as subsidiaries. At the point control no longer exists, a deemedprofit arises and the non-controlled investment is held at fair value on theconsolidated balance sheet In the six months to 31 October 2006 costs relatingto controlled investments of £1.4 million (2005: £0.8 million) were charged tothe income statement. Where the Group does not control a Progeny(R) company (typically owningless than 50% of the equity), these are defined as non-controlled investmentsand held on the balance sheet at fair value, as set out in the table below: Total Non-current assets Current assets Non-controlled Unquoted Quoted Investments (Unaudited) (Unaudited) (Unaudited) £ £ £ At 1 May 2005 2,515,517 818,819 3,334,336Investments 192,250 500,024 692,274Reclassifications (1,041,219) 1,041,219 -Change in fair value (200,799) 1,427,567 1,226,768 _________ _________ _________At 31 October 2005 1,465,749 3,787,629 5,253,378Investments 105,746 - 105,746Change in fair value 70,556 1,080,448 1,151,004 _________ _________ _________At 1 May 2006 1,642,051 4,868,077 6,510,128Investments 90,780 - 90,780Change in fair value - (1,891,088) (1,891,088) _________ _________ _________At 31 October 2006 1,732,831 2,976,989 4,709,820 ========== ========== ========== 7 Trade and other receivables During the half year there was a default on the repayment of a £239,570loan note due to the Group. Action is being taken to recover the debt and theBoard do not consider that a provision is required. 8 Shareholder communications The announcement is being sent to all shareholders on the register on 31 January2007. Copies of this announcement are posted on the Company's websitewww.ANGLEplc.com and are available from Buchanan Communications and theCompany's registered office: 20 Nugent Road, Surrey Research Park, Guildford,GU2 7AF. ANGLE PLC INDEPENDENT REVIEW REPORT TO ANGLE PLCFOR THE SIX MONTHS ENDED 31 OCTOBER 2006 Introduction We have been instructed by the company to review the financial information setout on pages 8 to 14 for the six months ended 31 October 2006 and we have readthe other information contained in the interim statement and considered whetherit contains any apparent misstatements or material inconsistencies with thefinancial information. This report, including the conclusion, has been prepared for and only for thecompany for the purpose of their interim statement and for no other purpose. Wedo not, therefore in producing this report, accept or assume responsibility forany other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent inwriting. 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 2006. BAKER TILLY Chartered AccountantsGuildford This information is provided by RNS The company news service from the London Stock Exchange