Last checked at 27 Oct 2016 15:00
27 October 2016
Physiomics Plc
("Physiomics" or "the Company")
Final Results for the year ended 30 June 2016
Chairman's Statement
Summary of Results in the year ended 30 June 2016
• The turnover of the Company increased 26% to £297,120 (2015: £235,486)
• The loss after net operating expenses (excluding share-based payments and operating exceptional costs) decreased 6% to £371,381 (2015: £395,329)
• The operating loss increased 4% to £431,561 (2015: £414,755)
• On 30 June 2016, the surplus of shareholders' funds was £204,153 (2015: £325,617)
This year, Physiomics continued to build out its client base and extend its modelling and simulation services relationships with key existing clients. In addition, Physiomics appointed a new Chief Executive Officer with significant deal making experience.
In summary the Company has:
· Appointed Professor Mark Middleton to our Scientific Advisory Board. Professor Middleton is Lead Cancer Clinician for the Oxford University Hospitals NHS Trust and deputy director of the Cancer Research UK Oxford Centre;
· Signed a contract with a new speciality pharma customer to carry out PK/ PD modelling and later in the year announced a first extension to this contract;
· Won a further large pharma customer (our 4th) for Virtual Tumour Pre-Clinical;
· Signed three further projects as part of an on-going collaboration with a global pharma which we first started working for in 2012;
· Appointed Dr Jim Millen as Chief Executive;
· Engaged Anthony Clayden, of Strategic Finance Director Limited, as Head of Finance and Company Secretary.
After the end of the period the Company also:
· Completed the placing of 2,220,000,000 new ordinary shares of 0.004p each at a price of 0.025p per share to raise a total of £555,000 gross
Dr Paul Harper, Non-Executive Chairman
Chairman and Chief Executive Officer's Statement
Introduction
The Company has undergone a re-structuring as part of developing a new strategy. The Chief Executive of long-standing, Dr Mark Chadwick, was replaced by Dr Jim Millen. Dr Millen brings new skills and contacts from his long and recent experience in global pharmaceutical companies - the target market for our Virtual Tumour product. He adds business development to scientific and clinical skills which he has already begun to leverage by successfully reactivating one dormant client and reaching out to contacts at a number of other potential new clients.
During the recent placing, we discussed with investors the alternatives of either focusing entirely on funding the core modelling and simulation business, or doing this in combination with the acquisition of the Company's own drug development pipeline. There was an appetite for both strategies but with a bias in favour of exploiting our modelling and simulation capabilities in the near term. Virtual Tumour Clinical, which the Company has already deployed to a major global pharma client, was of particular interest.
During the period, Physiomics significantly extended its relationship with one of its longest standing big pharma clients by signing three further extensions of a contract to provide services related to its Virtual Tumour Pre-Clinical model. We believe that the validation of our technology signalled by these contract extensions has played a significant role in enabling the Company to broaden out its customer base by signing two further clients, one big pharma and one speciality pharma.
(i) Focus on maximising modelling and simulation revenues from Virtual Tumour Clinical
The Company has significant capabilities to support the R&D process from candidate selection through to early clinical trials and has a number of product and service offerings including DrugCard (a cancer therapeutics and drug database) and EasyAP (predicting cardiac toxicity). Nevertheless, its main revenue driver has been the Virtual Tumour ("VT") predictive software as evidenced by the increase in revenue in this financial year compared with prior years.
To maximise revenue growth in the short to medium term, the Company intends to focus on deepening its relationship with its first major VT Clinical client, moving other existing clients up the value chain from VT Pre-Clinical to VT Clinical and acquiring new clients who could benefit from the spectrum of its VT modelling services.
It is intended that although the focus of our business development efforts will be on VT, other services will be sold to clients when there is a clear need.
(ii) Continue to develop Virtual Tumour to address the immuno-oncology market
With the continuing focus of many R&D based companies on immuno-oncology targets and drugs, we aim to build on the work we have done to address this growing market. As stated in last year's annual report, the Company has already developed a module for Virtual Tumour that has been used to make successful predictions of the effect of immuno-oncology drugs in the pre-clinical setting. In the forthcoming year, we intend to explore the suitability of our technology to make similar predictions for early immuno-oncology clinical trials in order to expand our service offering further
(iii) Personalised medicine software
Physiomics is assessing the feasibility of developing a software tool to determine which cancer treatment to provide to which groups of patients based on individual patient data. The software would use as its inputs pharmacological information about the drugs coupled with physiological, genomic, and metabolic information about the patient. The focus on forecasting would be on which treatment and schedule are likely to lead to an increase in survival. The Company is in talks with leading clinicians and collaborators regarding the required data and is seeking grant funding to develop a prototype software tool. Further updates will be provided in due course as appropriate.
(iv) Acquisition
Following feedback from investors during our September 2016 placing process, many of whom suggested that that the Company should focus on its core modelling and simulation business in the near term, the Company decided not to proceed with the proposed acquisition of BioMoti Limited and will instead concentrate on developing its business pipeline.
Dr Jim Millen, Chief Executive Officer
Dr Paul Harper, Non-Executive Chairman
Income Statement for the year ended 30 June 2016
|
|
| Year ended |
| Year ended |
|
|
|
| 30-Jun-16 |
| 30-Jun-15 |
|
|
|
| £ |
| £ |
|
Revenue
|
|
| 297,120
|
| 235,486
|
|
Net operating expenses Share-based compensation |
|
| (668,501) (37,233) |
| (630,815) (19,426) |
|
Operating exceptional costs
|
|
| (22,947) |
| - |
|
Operating loss
|
|
| (431,561)
|
| (414,755)
|
|
Presented as: |
|
|
|
|
|
|
Loss after net operating expenses |
|
| (371,381) |
| (395,329) |
|
Share-based compensation |
|
| (37,233) |
| (19,426) |
|
Operating exceptional costs |
|
| (22,947) |
| - |
|
Operating loss |
|
| (431,561) |
| (414,755) |
|
|
|
|
|
|
|
|
Finance income |
|
| 143 |
| 304 |
|
Finance costs |
|
| (8) |
| - |
|
|
|
|
|
|
|
|
Loss before taxation |
|
| (431,426) |
| (414,451) |
|
|
|
|
|
|
|
|
UK corporation tax |
|
| 52,729 |
| 56,795 |
|
|
|
|
|
|
|
|
Loss for the year attributable to equity shareholders |
|
| (378,697) |
| (357,656) |
|
Loss per share (pence) Basic and diluted |
|
| (0.013) | p | (0.017) | p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Comprehensive Income
|
|
| 30-Jun-16 |
| 30-Jun-15 |
|
|
|
| £ |
| £ |
|
Net loss for the year |
|
| (378,697) |
| (357,656) |
|
Other comprehensive income |
|
| - |
| - |
|
Total comprehensive (expense) for the year |
|
| (378,697) |
| (357,656) |
|
Attributable to: |
|
|
|
|
|
|
Equity shareholders |
|
| (378,697) |
| (357,656) |
|
Statement of Financial Position as at 30 June 2016
|
|
| Year ended |
| Year ended |
|
|
| 30-Jun-16 |
| 30-Jun-15 |
|
|
| £ |
| £ |
Non-current assets |
|
|
|
|
|
Intangible assets |
|
| 2,381 |
| 7,025 |
Property, plant and equipment |
|
| 1,557 |
| 2,242 |
Investments |
|
| 1 |
| 1 |
|
|
| 3,939 |
| 9,268 |
Current assets |
|
|
|
|
|
Trade and other receivables |
|
| 107,856 |
| 47,851 |
Taxation recoverable |
|
| 52,606 |
| 55,000 |
Cash and cash equivalents |
|
| 138,910 |
| 266,746 |
|
|
| 299,372 |
| 369,597 |
|
|
|
|
|
|
Total assets |
|
| 303,311 |
| 378,865 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
| (99,158) |
| (53,248) |
|
|
|
|
|
|
Total liabilities |
|
| (99,158) |
| (53,248) |
|
|
|
|
|
|
Net assets |
|
| 204,153 |
| 325,617 |
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Share capital |
|
| 1,032,663 |
| 992,663 |
Capital reserves |
|
| 4,476,621 |
| 4,259,388 |
Retained earnings |
|
| (5,305,131) |
| (4,926,434) |
Equity shareholders' funds |
|
| 204,153 |
| 325,617 |
|
|
|
|
|
|
Statement of Changes in Equity for the year ended 30 June 2016
|
| Share | Share-based |
| Total |
| Share | premium | compensation | Retained | shareholders' |
| capital | account | reserve | earnings | funds |
| £ | £ | £ | £ | £ |
|
|
|
|
|
|
At 1 July 2014 | 687,663 | 3,925,213 | 92,389 | (4,568,778) | 136,487 |
|
|
|
|
|
|
Share issue (net of costs) | 305,000 | 222,360 | - | - | 527,360 |
Loss for the year | - | - | - | (357,656) | (357,656) |
Share-based compensation | - | - | 19,426 | - | 19,426 |
|
|
|
|
|
|
At 30 June 2015 | 992,663 | 4,147,573 | 111,815 | (4,926,434) | 325,617 |
|
|
|
|
|
|
Share issue (net of costs) | 40,000 | 180,000 | - | - | 220,000 |
Loss for the year | - | - | - | (378,697) | (378,697) |
Share-based compensation | - | - | 37,233 | - | 37,233 |
|
|
|
|
|
|
At 30 June 2016 | 1,032,663 | 4,327,573 | 149,048 | (5,305,131) | 204,153 |
|
|
|
|
|
|
Cash Flow Statement for the year ended 30 June 2016
|
|
| Year ended |
| Year ended |
|
|
| 30-Jun-16 |
| 30-Jun-15 |
|
|
| £ |
| £ |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
| (431,561) |
| (414,755) |
Amortisation and depreciation |
|
| 6,439 |
| 6,616 |
Share-based compensation |
|
| 37,233 |
| 19,426 |
Decrease in receivables |
|
| (60,005) |
| 3,725 |
Decrease in payables |
|
| 45,910 |
| (54,458) |
|
|
|
|
|
|
Cash generated from operations |
|
| (401,984) |
| (439,446) |
|
|
|
|
|
|
UK corporation tax received |
|
| 55,123 |
| 46,795 |
Interest paid |
|
| (8) |
| - |
|
|
|
|
|
|
Net cash generated from operating activities |
|
| (346,869) |
| (392,651) |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Interest received |
|
| 143 |
| 304 |
Sale of non-current assets |
|
| 725 |
| - |
Purchase of non-current assets |
|
| (1,835) |
| (625) |
|
|
|
|
|
|
Net cash received by investing activities |
|
| (967) |
| (321) |
|
|
|
|
|
|
Cash outflow before financing |
|
| (347,836) |
| (392,972) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
Issue of ordinary share capital (net of expenses) |
|
| 220,000 |
| 527,360 |
|
|
|
|
|
|
Net cash from financing activities |
|
| 220,000 |
| 527,360 |
|
|
|
|
|
|
Net increase / (decrease) cash and cash equivalents |
|
| (127,836) |
| 134,388 |
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
| 266,746 |
| 132,358 |
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
| 138,910 |
| 266,746 |
Notes
1. Extract from Annual Report and Accounts
The financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006.
2. Basis of preparation
Physiomics Plc has adopted International Financial Reporting Standards ("IFRS"), IFRIC interpretations and the Companies Act 2006 as applicable to companies reporting under IFRS.
3. Annual General Meeting
The Annual General Meeting ("AGM") of the Company will be held at the offices of Physiomics plc, The Magdalen Centre, Robert Robinson Avenue, Oxford Science Park, Oxford, OX4 4GA at 10.00 am on Friday 16 December 2016. Copies of the annual report and the documentation convening the AGM will be sent to shareholders, and made available on the Company's website, in due course and a further announcement will be made when they have been dispatched.
Contacts:
Physiomics Plc
Dr Jim Millen, Chief Executive Officer, +44 (0)1865 784980
WH Ireland Limited
Katy Mitchell
+44 (0) 161 832 2174