Trading Update

26 May 2005 07:02

Angle PLC26 May 2005 Embargoed for 7.00 a.m. 26 May 2005 ANGLE plc TRADING UPDATE Further to the announcement today of the successful conclusion of negotiationsfor Provexis' proposed reverse takeover of Nutrinnovator and funding for theEnlarged Group, ANGLE plc, the venture management and consulting companyspecialising in the commercialisation of technology, is pleased to provide anupdate on trading and investment realisations for the year ended 30 April 2005. Revenue for the year is expected to be not less than £4.0m, at least 39% up onthe previous year. Operating profits on Consulting & Management are expected to be maintained at orabove the level for the previous year of £0.4m. Execution of the strategy of investment in the establishment of new Progeny(R)companies proceeded in line with expectations with planned expenditure toestablish and develop new ventures of some £2.0m being charged to the P&L. Thisis a significant planned increase to the corresponding investment in theprevious year of £0.7m. The overall gain to ANGLE from the Provexis transaction is £2.0m at the placingprice. Since the transaction was completed after the year end, it will fall inthe accounting year ended 30 April 2006 rather than in the year just ended ashad been planned. The internal rate of return (IRR) on ANGLE's investment if itwere to be realised at completion would be 78% per annum. Following a fall in the share price of AIM-listed Corpora PLC since 31 October2004, the value of ANGLE's shares in this company (taken as consideration forthe disposal of ANGLE's stake in Progeny(R) company, Exago Ltd) has declined,resulting in the need for an increase in the provision for the diminution invalue of investments of £0.5m. Even after this write down, the investment isstill valued at 4.2 times cost and the IRR is 91% per annum. Since its flotation, ANGLE has built its Progeny(R) pipeline of ventureopportunities under evaluation and established four additional Progeny(R)companies, which the directors believe may have the potential for substantialcapital growth: • ContraSoft - computer software testing technology with the potential forimprovements in productivity, reduced costs and improved software quality; • Customiser - internet personalisation technology for the provision ofcustomised information to the user; • Geomerics - rapid computational technology for computer graphics and otheruses; • Novocellus - IVF technology for assessing embryo viability. Progress has also been made in developing the Progeny(R) companies establishedbefore ANGLE's flotation, notably: • Acolyte Biomedica has completed the development of its MRSA testingproduct and has announced plans to launch the product commercially in the nearfuture; • NeuroTargets has progressed its nerve injury and pain treatments andsecured an alliance with BioFocus plc focused on discovering treatments fornerve injury and pain; • Provexis, in addition to its reverse into Nutrinnovator and relatedfunding round, has progressed product development and clinical trials of Sirco,its cardio-vascular health drink and has announced plans for the launch of thedrink in the final quarter of 2005. Corpora PLC, the AIM listed company in which ANGLE holds shares following thesale of its Progeny(R) company Exago to Corpora, has recently completed a £3mplacing to fund expansion and announced software product sales to Microsoft andEDS. All of the above Progeny(R) companies have been founded by ANGLE and developedusing ANGLE's Progeny(R) process to build value from intellectual property. Andrew Newland, Chief Executive of ANGLE, said: "I am pleased with ANGLE's progress in the execution of its ventures investmentstrategy and in the development of its underlying Consulting and Managementbusiness. We believe the Provexis transaction is a further demonstration of thestrength of ANGLE's Progeny(R) process in building value from intellectualproperty." For further information ANGLE plc 01483 295830Andrew Newland, Chief ExecutiveDawson Buck, Deputy Chief Executive Buchanan Communications 020 7466 5000Richard Darby, James Strong Notes to Editors Founded in 1994, ANGLE is an international venture management and consultingcompany 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. This information is provided by RNS The company news service from the London Stock Exchange