Angle plc is primarily a management services business who also
have partnerships with Universities and corporate clients to develop
progeny companies and products. They have been recently re-rated
to 126p. Their biggest asset,in my opinion, is their 47% stake in Geomerics who have recently entered into a large corporate (Intel - allegedly) deal to further develop
their 'Enlighten' computer graphics which could become the industry standard.
CHAIRMAN'S STATEMENT (taken from results of 29th July 2010)
In the face of continuing tough economic conditions, ANGLE produced an improved
portfolio position and maintained profitability in its UK Management services
business. The Board is particularly pleased to note that its corporate
partnership approach has, shortly after the year end, resulted in a value-added
investment into Geomerics and in funding for further development of the
technology developed by NeuroTargets.
Total comprehensive income for the year was GBP0.3 million (2009: loss GBP3.6
During the year, ANGLE moved back into profitability before controlled
investments and tax of GBP0.1 million (2009: loss GBP2.3 million).
After expenditure on controlled investments, the loss before tax reduced to
GBP0.2 million (2009: GBP3.4 million).
The sale of the residual shareholding in Provexis generated cash realisations of
GBP1.4 million (2009: nil) with a fair value gain of GBP0.9 million.
Operating costs to manage and develop the Ventures portfolio were reduced by 26%
to GBP0.7 million (2009: GBP0.9 million). Reflecting ANGLE's partnership
approach and the stage of development of the portfolio, continued expenditure on
controlled investments was kept low at only GBP0.3 million (2009: GBP1.1
million). Conversely, business development costs were substantially increased
in the Management services business to support the development of new sources of
The cash balance increased during the year to GBP0.8 million at 30 April 2010.
However this included an advance receipt of GBP0.3 million in relation to the
SME innovation programme, which was defrayed shortly after the year end. The
normalised cash balance was therefore GBP0.5 million (30 April 2009: GBP0.3
The Company continues to focus on the level of cash resources available to it
and will continue to reduce its cost base and seek new management contracts.
Profits from the UK Management services business were maintained during the year
at GBP0.3 million (2009: GBP0.3 million).
There is currently significant pressure on the Company's UK Government contracts
and this may result in a drop in UK revenues. In anticipation of this, during
the year ANGLE invested substantially in developing Middle East markets. It is
also winding down its US Management services business in order to focus on the
Middle East and the UK markets.
The business development efforts undertaken to date have established a number of
strong client relationships in the Middle East. These have so far delivered a
number of smaller contracts and it is expected they will translate into major
management contracts in the future.
ANGLE has continued its tight focus on its existing portfolio, with emphasis on
its leading investments. A key strategy of the Company is to seek corporate
partnership deals for its portfolio companies, so that they can benefit from the
sales, marketing and technology support of a major industry player as well as
gaining access to additional funds for development.
This strategy has proven successful with two new corporate deals being secured
shortly after the year end for Geomerics and NeuroTargets.
ANGLE's controlled investments are consolidated so that their fair value is not
included in the investment portfolio fair value in the statement of financial
position and their operating costs are expensed in the results.
During the year, encouraging progress was made with four of the portfolio
NeuroTargets (25%) (neuropathic pain) has agreed a licensing deal with the
University of Bristol, and the Wellcome Trust has since the year end awarded the
University a further GBP3.8 million to progress the galanin programme.
At the present time, there is pressure on UK Government contracts. It is not
yet fully clear how policy decisions will impact ANGLE in the nearer term.
Recognising the inherent risks within the UK economy, ANGLE implemented a
proactive business development programme over a year ago to grow its specialist
Management services business in the Middle East. There are promising signs that
major international Management services contracts may be secured over the next
twelve months to substantially increase the scale of this business.
ANGLE's corporate partnership strategy for its portfolio companies helps to
protect these investments and provide them with the necessary conditions for
success. We will continue to work with these companies to develop value for
28 July 2010
CHIEF EXECUTIVE'S STATEMENT