Physiomics PLC Final Results for the year ended 30 June 2016 (6529N)

TIDMPYC

RNS Number : 6529N

Physiomics PLC

27 October 2016

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 GBP297,120 (2015: GBP235,486) 

-- The loss after net operating expenses (excluding share-based payments and operating exceptional costs) decreased 6% to GBP371,381 (2015: GBP395,329)

   --          The operating loss increased 4% to GBP431,561 (2015: GBP414,755) 
   --          On 30 June 2016, the surplus of shareholders' funds was GBP204,153 (2015: GBP325,617) 

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 GBP555,000 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 
                                                      GBP               GBP 
 Revenue                                          297,120           235,486 
 Net operating expenses                         (668,501)         (630,815) 
  Share-based compensation                       (37,233)          (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 
                                          GBP            GBP 
 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 
                                            GBP           GBP 
 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 
                          GBP         GBP            GBP           GBP             GBP 
 
 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 
                                                                 GBP          GBP 
 
 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, [phone]

WH Ireland Limited

Katy Mitchell

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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October 27, 2016 10:00 ET (14:00 GMT)