Last checked at 27 Nov 2008 07:00
Thursday 27 November 2008
Physiomics Plc
("Physiomics" or "the Company")
Final Results for the year ended 30 June 2008
Chairman's Statement
Physiomics made substantial progress during the year under review. The pilot project agreed with Eli Lilly, a global pharmaceutical company, met its commercial and technical milestones to the satisfaction of a client company that has considerable in-house experience in system cell technology. This validation of the Physiomics technology has been of vital importance as we speak to new client companies. Moreover, since our "SystemCell®" Technology has been adapted to enable simulation on a "supercomputer" we are able to offer not only a much improved service to our clients but a means of accelerating our in-house development activities.
Following a strategic review of technology progress, the competitive environment and the improvement in business prospects engendered by the landmark deal with Lilly, we have aligned our internal programmes to match new opportunities. Following changes in the priorities and dynamics of the business, a re-structuring of the board has seen my appointment as Non-Executive Chairman and of Mr. Roger Jones as Group Financial Controller and Company Secretary.
We completed in August 2007 a project for ValiRx Plc (formally Cronos Therapeutics). Our apoptosis model technology has supported both "no-go" and "go" decisions for therapeutic targets in record time (7 months). As a result of this project we are in the process of filling a joint patent application on a combination of drug targets.
In September 2007 we cemented a contract with the global pharmaceutical company Eli Lilly. Completion of the initial project has led to two new projects initiated in July 2008. Following the recent confidence shown in Physiomics' technologies by this global pharmaceutical company, Physiomics' directors believe that new contracts will emerge from our ongoing discussions with other major pharmaceutical companies.
As part of the TEMPO project, Physiomics has extended its technology to enable the design of optimal cancer drug dosing schedules by taking into account circadian rhythms. By changing the time of day when a certain drug is given, it is possible to both increase its efficacy and decrease its toxicity. In May 2008, Physiomics announced that, following a successful mid-term review held in Oxford in March 2008 and evaluation of the results by the European Commission, the 3 years research program "TEMPO" that commenced in September 2006 can continue as specified the original grant proposal. The first results were presented in major scientific conferences and gained attention from the scientific media, including the New Scientist along with local press and local radio. This work even attracted the interest of the Sun newspaper that resulted in an article explaining the concept.
The TEMPO concept has the potential to improve the efficacy of existing anti-cancer drugs perhaps offering a new lease of life to long established drugs. It is therefore not surprising that the Company has already received expression of interest from a number of bio-pharmaceutical companies seeking to license such new chronotherapeutic schedules for their existing drugs.
During the period we have also made significant progress in the development of our oncology model portfolio and virtual tumour project, by integrating our new apoptosis (targeted cell death) model with our existing cell cycle model to give a more complete picture of the balance between proliferation and death of cells. This is the key to understanding the dynamics of diseases such as cancer. The biological models are supported by sophisticated simulation software environments developed recently. This include a stand-alone simulation platform ("Model Player") incorporating a reference database to allow in-house use of Physiomics' technology by third parties.
We have also developed a new version of the proprietary SystemCell® technology running on the IBM "Blue C" super computer at the Institute of Life Sciences at Swansea University. This allows us to reduce typical computing times from many hours to just a few minutes, giving Physiomics a significant technological edge for its fee for service business. In December 2007 we have continued to further our relationship with the Institute of Life Science of Swansea University, with the signature of a memorandum of understanding.
After a difficult trading year for the year ending 30 June 2008, the Company has secured new contracts (some of which are contracts that will last beyond the year ending 30 June 2009), which together with grant income will result in revenue of at least £440,000
There has been an increasing trend this year for even the largest of the drug development companies to use smarter technologies to shorten the discovery and development process, to reduce associated costs and to maximise useable patent life by shortening the process. Similarly, we are seeing a shift in the regulatory environment towards active promotion of technologies like SystemCell® to give greater insights into drug mechanism of action and reduce dependence on animal data. We have seen, in the last month, a significant increase in expression of interest from pharmaceutical and biotechnology companies in our fee-for-service consultancy and to in-license our technology. We are looking forward to secure additional contracts and repeat business from existing partners.
Dr Paul Harper, Chairman, Physiomics Plc
Income Statement for the year ended 30 June 2008
| Year ended | Year ended | ||||
| 30-Jun-08 | 30-Jun-07 | ||||
| £ | £ | ||||
| Revenue | 91,221 | 216,464 | |||
| Net operating expenses | (526,661) | (468,745) | |||
| Operating loss | (435,440) | (252,281) | |||
| Finance income | 347 | 408 | |||
| Finance costs | (9,376) | - | |||
| Loss before taxation | (444,469) | (251,873) | |||
| UK corporation tax | 10,000 | 58,922 | |||
| Loss for the period attributable to equity shareholders | (434,469) | (192,951) | |||
| Loss per share (pence) Basic and diluted | 0.116 | p | 0.057 | p | |
Balance Sheet as at 30 June 2008
| Year ended | Year ended | |||
| 30-Jun-08 | 30-Jun-07 | |||
| £ | £ | |||
| Non-current assets | ||||
| Intangible assets | 39,764 | 46,055 | ||
| Property, plant and equipment | 3,779 | 7,589 | ||
| Investments | 1 | 1 | ||
| 43,544 | 53,645 | |||
| Current assets | ||||
| Trade and other receivables | 61,935 | 173,835 | ||
| Cash and cash equivalents | 8,716 | 74,823 | ||
| 70,651 | 248,658 | |||
| Total assets | 114,195 | 302,303 | ||
| Current liabilities | ||||
| Trade and other payables | (310,270) | (121,909) | ||
| Loans | (8,000) | - | ||
| (318,270) | (121,909) | |||
| Non-current liabilities | ||||
| Other payables | (150,000) | (81,619) | ||
| Total liabilities | (468,270) | (203,528) | ||
| Net assets | (354,075) | 98,775 | ||
| Capital and reserves | ||||
| Share capital | 149,989 | 149,989 | ||
| Capital reserves | 1,611,436 | 1,611,436 | ||
| Other reserves | - | 18,381 | ||
| Retained earnings | (2,115,500) | (1,681,031) | ||
| Equity shareholders' funds | (354,075) | 98,775 | ||
Statement of changes in equity for the year ended 30 June 2008
| Share | Total | ||||
| Share | premium | Other | Retained | shareholders' | |
| capital | account | reserves | earnings | funds | |
| £ | £ | £ | £ | £ | |
| At 30 June 2006 as previously stated | 92,810 | 1,329,022 | - | (1,488,078) | (66,246) |
| Prior period effect of adoption of IFRS | - | - | - | - | - |
| At 30 June 2006 as restated | 92,810 | 1,329,022 | - | (1,488,078) | (66,246) |
| Share issue (net of costs) | 57,179 | 282,414 | - | - | 339,593 |
| Loss for the year | - | - | - | (192,953) | (192,953) |
| Equity element of loan notes | - | - | 18,381 | - | 18,381 |
| At 30 June 2007 | 149,989 | 1,611,436 | 18,381 | (1,681,031) | 98,775 |
| Loss for the year | - | - | - | (434,469) | (434,469) |
| Equity element of loan notes | - | - | (18,381) | - | (18,381) |
| At 30 June 2008 | 149,989 | 1,611,436 | - | (2,115,500) | (354,075) |
Cash Flow Statement for the year ended 30 June 2008
| Year ended | Year ended | |||
| 30-Jun-08 | 30-Jun-07 | |||
| £ | £ | |||
| Cash flows from operating activities: | ||||
| Operating loss | (435,440) | (252,281) | ||
| Amortisation and depreciation | 11,318 | 14,290 | ||
| (Increase) decrease in receivables | 62,978 | (58,745) | ||
| Increase in payables | 178,984 | (90,743) | ||
| Cash generated from operations | (182,160) | (387,479) | ||
| UK corporation tax received | 58,922 | - | ||
| Interest paid | - | - | ||
| Net cash generated from operating activities | (123,238) | (387,479) | ||
| Cash flows from investing activities: | ||||
| Interest received | 347 | 408 | ||
| Purchase of non-current assets, net of grants received | (1,216) | (4,334) | ||
| Disposal of non-current assets | - | 299 | ||
| Net cash used by investing activities | (869) | (3,627) | ||
| Cash inflow (outflow) before financing | (124,107) | (391,106) | ||
| Cash flows from financing activities: | ||||
| Receipt of loans | 8,000 | - | ||
| Issue of ordinary share capital | - | 339,593 | ||
| Receipt from related parties | 50,000 | 100,000 | ||
| Net cash from (used by) financing activities | 58,000 | 439,593 | ||
| Net increase (decrease) in cash and cash equivalents | (66,107) | 48,487 | ||
| Cash and cash equivalents at beginning of year | 74,823 | 26,336 | ||
| Cash and cash equivalents at end of year | 8,716 | 74,823 |
Earnings per Share
The calculations of loss per share are based on the following losses and numbers of shares.
| 2008 | 2007 | |
| £ | £ | |
| Loss on ordinary activities after tax | (434,469) | (192,951) |
| ============= | ============= | |
| No. | No. | |
| Weighted average no of shares: | ||
| For basic and diluted loss per share | 374,972,639 | 339,333,755 |
| ============= | ============= | |
| Basic and diluted loss per share | 0.116p | 0.057p |
| ============= | ============= |
Basic and diluted losses per share are the same as there is no dilution
Notes
1. Extract from Annual Reports and Accounts
The financial information set out above does not constitute statutory accounts within the meaning of s.240 of the Companies Act 1985.
2. Basis of preparation
Physiomics Plc has adopted International Financial Reporting Standards ("IFRS") with effect from 1 July 2006. The Company has applied IFRS in its financial statements for the year ending 30 June 2008 as well as for the comparative numbers for 2007 shown above. Therefore, these statements are the Company's first financial statements prepared in accordance with IFRS as adopted by the EU.
The basis of preparation and accounting policies followed in this report differ from those set out in the Annual Report and Accounts 2007 which were prepared in accordance with United Kingdom accounting standards (UK GAAP).
3. Report Distribution
Copies of the annual report are being sent to shareholders today, Thursday 27 November 2008 and will be available to the public for a period of one month at the offices of Physiomics Plc, The Magdalen Centre, Robert Robinson Avenue, Oxford Science Park, Oxford, OX4 4GA, and at the Company's website www.physiomics-plc.co.uk.
Contacts:
| Physiomics Plc | |
| Dr Paul Harper, Chairman | +44 (0) 7747 842446 |
| Grant Thornton UK LLP | +44 (0) 20 7383 5100 |
| Colin Aaronson, Philip Secrett |