TIDMPYC
RNS Number : 5021A
Physiomics PLC
30 September 2020
30 September 2020
Physiomics plc
("Physiomics" or "the Company")
Final Results for the year ended 30 June 2020 and Notice of
AGM
Highlights
Financial Highlights
-- Total income (revenue and grant income) increased 7% to
GBP841,649 (2019: GBP783,101), the highest in the Company's
history
-- The operating loss decreased 33% to GBP134,385 (2019: GBP201,219)
-- The loss after taxation decreased 38% to GBP64,424 (2019: GBP104,040)
-- Placing and subscription in May 2020 raised GBP828,750
(gross) through the issue of 23,678,571 new ordinary shares at an
issue price of 3.5 pence per share
-- At 30 June 2020, the surplus of shareholders' funds was
GBP1,314,981 (30 June 2019: GBP607,914)
-- Cash and cash equivalents at 30 June 2020 of GBP1,047,860 (30 June 2019: GBP405,366)
Operational highlights
-- Renewal of agreement with Merck KGaA in December 2019
-- Repeat contracts with clients CellCentric and Bicycle Therapeutics
-- Award of NIHR grant to fund clinical study relating to
Physiomics' personalised dosing tool for prostate cancer and
ongoing discussion relating to its commercialisation
-- Post period end, award of contract by new big-pharma client, Astellas Pharma Inc
-- Ongoing discussion with several large CROs relating to potential collaborations
-- Strongest ever business development pipeline resulting from higher marketing spend
Dr Paul Harper, Non-Executive Chairman, commented:
"The Company continues to make good progress, with all key
indicators of performance moving in the right direction. We are
pleased to be working with Cancer Research UK (announced July 2019)
and to have repeat contracts with both CellCentric and Bicycle
Therapeutics, as well as our first contract with Astellas Pharma
Inc.
The team has also worked hard to ensure that our on-going
relationship with Merck led to a renewal of the arrangement (first
announced in December 2017). We believe that the Merck team
recognises the quality and value of our modelling itself, coupled
with the interpretation and guidance we are able to provide. The
relationship with Merck represents an independent endorsement of
the quality of the Physiomics(R) package, which has allowed Dr
Millen and his team to create new relationships and to secure new
contracts. This success has led to a healthy pipeline of new
opportunities going forward. It is also my firm belief that the
emerging personalised medicine package will add significantly to
the Company's portfolio, opening wholly new opportunities.
Meanwhile the team has embarked on a more extensive business
development strategy aimed at bringing in new business.
I cannot stress too highly the quality of the team. They combine
an extraordinary range of skills across many disciplines. They have
evolved into an exceptional group, combining their skills,
expertise and experience to provide clients with an outstanding
service. This has enabled Dr Millen to orchestrate a major business
development initiative which has achieved significant success."
Annual General Meeting
The Company is closely monitoring the COVID-19 situation,
including UK Government guidance and will continue to do so in the
lead up to the AGM. The health of our shareholders, employees and
stakeholders remains extremely important to us and accordingly, the
board has taken into consideration the current UK government stay
at home measures as well as ICSA guidance. Should these directives
remain in place up to the AGM, shareholders, advisors and other
guests will not be allowed to attend the AGM in person and anyone
seeking to attend the meeting will be refused entry. As such,
shareholders should note they are not entitled to attend the AGM in
person unless notified otherwise via the Company's website at
www.physiomics.co.uk .
Shareholders are requested to therefore submit their votes, in
respect of the business to be discussed, via proxy as early as
possible. Shareholders should appoint the Chair of the meeting as
their proxy. If a shareholder appoints someone else as their proxy,
that proxy will not be able to attend the meeting in person or cast
the shareholder's vote.
The business at the AGM will be curtailed to the formal business
section only, with no wider presentations on business performance
or Q&A. If any shareholder has a question they would like to
pose to the board, this should be submitted to the Chair via
info@physiomics.co.uk. In addition, as detailed in our announcement
of 23 September 2020, the Company will be holding an investor
presentation at 11.00 a.m. on 5 October 2020. Please see this
announcement for details of how to register for this event.
In the event that further disruption to the 2020 AGM becomes
unavoidable, we will announce any changes to the meeting (such as
timing or venue). The website also provides links to the annual
report and accounts, interim results and other relevant
announcements immediately after they have been made available via
RNS.
The Annual General Meeting of the Company will be held at the
offices of Physiomics Plc, The Magdalen Centre, Oxford Science
Park, Oxford OX4 4GA at 10.00 a.m. on 17 November 2020.
The full annual report and accounts for the year ended 30 June
2020 along with the notice of AGM will be uploaded on the Company's
website at www.physiomics.co.uk and posted to shareholders during
October.
Chairman and Chief Executive Officer's Statement
Introduction
The Company is pleased to report that it has continued to grow
its top line and reduce its losses despite some challenges as a
result of the COVID 19 epidemic. Encouragingly, key clients Merck,
CellCentric and Bicycle Therapeutics each awarded the Company
repeat contracts during the year. It was particularly pleasing that
the announcement of a further contract with Bicycle Therapeutics on
30 June 2020 represented the fourth Bicycle asset that Physiomics
has now supported. Just after the financial year end, on 31 July,
the Company was also delighted to announce that it had been
retained by a major new big pharma client, Astellas Pharma Inc., to
conduct a project on an undisclosed asset utilising Physiomics'
Virtual Tumour immuno-oncology modelling platform.
In order to capitalise on its current momentum, the Company
completed an oversubscribed fundraise in May 2020, raising GBP829k
(gross). Key uses of these funds are to increase the Company's
marketing capability, hire new technical staff and invest further
in its personalised dosing technology initiative.
In addition to achieving strong organic growth in its consulting
business, the Company has also been engaging in discussions with
several contract research organisations with regard to possible
collaborations. Previously reported discussions relating to the
potential commercialisation of the Company's personalised dosing
technology also remain ongoing.
Overall, the year has been a productive one for Physiomics. The
Company's reputation amongst both investors and clients appears to
be strengthening and we continue to focus on generating shareholder
value.
Financial Review
The Company's full year total income of GBP841,649 reflects
these achievements, being the highest in its history, and a 7%
increase on the previous full year to 30 June 2019. Total income
grew to GBP499,037 in the second half compared with the first half
unaudited total income of GBP342,612. This pattern is consistent
with previous years and substantially due to both summer and
Christmas holidays falling in the first half of the Company's
financial year.
The operating loss decreased 33% to GBP134,385 (2019:
GBP201,219). The loss after taxation decreased 38% to GBP64,424
(2019: GBP104,040).
Following the Company's fundraise in May 2020, which raised
GBP829k (gross), the Company allocated funds to expand the in-house
team, increase marketing spend and invest further in its
personalised medicine initiative, all of which are expected to
continue to help to generate and support the increased levels of
business going forwards.
Net assets at the year-end were GBP1,314,981 (2019: GBP607,914)
of which GBP1,047,860 (2019: GBP405,366) comprised cash and cash
equivalents. This is the highest net asset position in the
Company's history, combined with the lowest loss since 2009. The
net cash outflow from operating activities fell by GBP27,402 (2019:
GBP26,025) compared with the previous year.
COVID 19
These results were achieved despite the ongoing COVID 19 crisis
and the Company is pleased to say that there appears to be only
very minimal effects of COVID 19 on its business so far. In
particular:
-- There has been no reduction in the number of new business
meetings achieved, if anything such meetings have increased;
and
-- The Company's employees achieved a smooth transition to
remote working, without impacting on the quality of interactions
with clients. This is currently being maintained and will be kept
under review
As previously disclosed, there has been the delay in the
commencement of our NIHR funded trial at the Portsmouth Technology
Trials Unit, as a result of which some grant income anticipated for
the financial year ended 30 June 2020 will now fall into the
current financial year ending 30 June 2021, though it is not
anticipated that there will be any overall loss of income relating
to the grant over its term.
Staff
The Company's staff remain critical to a business which is
essentially about delivering analysis to clients. This is derived
from rigorous analysis by individuals experienced in oncology drug
development, applied mathematics and from their ability to clearly
communicate this analysis to the client. We believe our staff score
highly on both these fronts and remain the key to our continuing
success. The Company has publicly stated its intention to utilise
some of the funds raised in its May 2020 fundraise to recruit a
further full-time staff member and this process is ongoing. In
addition, the Company has decided to retain an intern for a period
of around four months starting in September 2020. For both the
full-time and the intern position, the Company attracted a
significant number of applications from well-qualified individuals,
which is further validation of the Company's reputation in the job
market and of the profile it is achieving through its work. The
board regularly reviews staff utilisation rates and anticipated
workload and this will continue.
The Company would like to thank all its staff for their
continuing hard work and commitment during the year.
Outlook
The Company continues to develop its reputation amongst
investors and clients as it moves ever closer to profitability and
cashflow break-even. With additional funding from our May 2020
fundraise applied to marketing activities, the Company's business
development pipeline is the strongest it has ever been. The Company
expects to continue to attract both repeat business and new clients
of all sizes, to develop its personalised dosing technology and to
explore innovative collaboration opportunities over the course of
the current financial year.
Dr Jim Millen, Chief Executive Officer
Dr Paul Harper, Non-Executive Chairman
Strategic Report
Principal activities
Physiomics is engaged in providing consulting services to
pharmaceutical companies in the areas of outsourced quantitative
pharmacology and computational biology, using a combination of
industry standard technologies and its own proprietary technology
platform, Virtual Tumour(TM). In simple terms, this means helping
companies to put the right drugs together, at the right dose, in
the right types of cancer to help achieve the best possible results
at the most economic cost.
Modelling and simulation using Virtual Tumour(TM) and other
tools
The Company's focus is almost exclusively in the provision of
modelling, simulation and data analysis services covering the full
range of oncology R&D and with a focus on quantitative
pharmacology techniques. The Company's main commercial revenue
driver is its proprietary Virtual Tumour(TM) predictive software in
the pre-clinical and clinical space, and in particular extensions
to this software that have been developed over the last few years
to address specialist areas such as immune-oncology, DNA damage
repair, radiation therapy and others. The Company also utilises
other industry standard tools, such as NONMEM and MATLAB as well as
developing its own bespoke models using the R programming language.
Projects often require a blend of several approaches to deliver the
optimal insights to clients.
Working in the late discovery, preclinical and clinical phases
of pharmaceutical R&D, Physiomics adds value by helping
companies to efficiently derive insights from their data. This is
achieved in a variety of ways ranging from data analysis,
visualisation and interpretation to mathematical modelling of
pharmacokinetic and pharmacodynamic effects (i.e. how much drug is
in the body and what effect it is having). The end result is that
our clients are in a better position to optimise the treatments
they are developing by selecting the right targets, drugs, dosages,
timing and combinations. We believe that we add particular value in
early development during the transition from pre-clinical to
first-in-man studies where our experience and capabilities have
been helpful in supporting clients such as UK-based CellCentric and
Bicycle Therapeutics in identifying optimal clinical trial designs
and justifying this to regulatory authorities. In the 2019/20
financial year, the Company has been able to:
-- Support big pharma companies in making strategic decisions
about how to optimise combinations of investigational and approved
agents in mid-stage clinical development programs. The potential
value of getting these decisions right first time and hitting a
target profile is significant.
-- Support small and medium sized biotechs by providing a full
spectrum of pharmacokinetic and pharmacodynamic modelling, analysis
and interpretation services as well as by helping them to translate
their pre-clinical data to clinical settings and enable them to
respond more dynamically to new data coming out of their first
human studies.
The Company is beginning to see an increased willingness for
clients to allow their name to be associated with Physiomics(R) ,
which we believe is an indication of the value that we are adding
and the increased credibility and recognition of the Physiomics(R)
brand. We believe that this in turn further improves our ability to
attract and retain new business. The most recent example of this
was the public announcement of a contract award by Astellas Pharma
Inc.
Personalised medicine
In addition to its core modelling and simulation business, the
Company has continued to develop its technology for use in the
field of personalised medicine. The term "personalised medicine" is
used in many ways but is most often associated with the use of
genetic markers in the selection of drugs to treat a particular
group of patients. Physiomics' approach has been to use its
expertise in interpreting pre-clinical and clinical cancer data to
help predict when to treat patients and with what dose of drug.
This approach relies more on advanced analytical techniques, many
of which (such as machine learning and neural networks) are in the
field of artificial intelligence (AI). To date this has been funded
by two Innovate UK Grants and most recently by an NIHR grant
awarded in March 2020. This latest grant is being used to fund an
observational trial at Portsmouth's Technology Trials Unit, which
is intended to gather data to further validate and support the use
of the Company's personalised dosing technology. In parallel with
these ongoing research activities, the Company is exploring how it
can accelerate the commercialisation of its technology via
collaboration with other companies that are more established in
this field, especially in the USA.
Business Model
The Company's main commercial business is the provision of
consulting services which rely substantially on our Virtual
Tumour(TM) pre-clinical and clinical models that are proprietary to
the Company. Physiomics works primarily on a fee for service basis,
although we are open to and continue to explore other approaches
including risk sharing and collaboration including:
-- The incorporation of success-based milestones in our
consulting contracts. Examples of companies where Physiomics has
historically entered into risk-sharing arrangements include Sareum
Holdings plc and ValiRx plc;
-- The embedding of our technology as part of a broader offering
in collaboration with another service provider. The Company is in
several active discussions of this nature and will report further
once specific agreements have been reached; and
-- The creation of a version of Virtual Tumour(TM) that could be
licensed to a client for its own use rather than by the Company as
part of a consulting service. The Company already creates
executable versions of a number of its models on request by
clients. A further step would be to develop Virtual Tumour(TM) into
a tool whose full functionality could be utilised by a client,
either alongside a consulting project or possibly
independently.
The Company will continue to explore these alternative
approaches, though envisages that consulting will continue to be
the main driver of revenues in the short to medium term.
Key strengths
The consulting business is the core of the Company's commercial
activity and we believe that it is unique in a number of
respects:
-- We focus almost exclusively on oncology. Our team has over
120 years of combined experience in the development of cancer drugs
and computational biology, and in particular of quantitative
pharmacology (essentially analysing how much drug to use and trying
to predict what effect it will have). Over the Company's lifetime
it has completed over 85 projects covering hundreds of targets,
cell lines, drugs, and cancer types;
-- We use a proprietary in-house platform called Virtual
Tumour(TM). Although the team can take advantage of all commonly
used modelling, simulation and data analysis techniques in the
cancer field, we also have access to an internally developed
platform that is uniquely useful when considering combinations of
cancer drugs (and most anti-cancer regimes eventually involve using
multiple agents simultaneously); and
-- We provide a responsive and dedicated service. Many large
companies offer services in the cancer space though do not restrict
themselves to cancer nor to quantitative pharmacology. As a result,
we believe, many of these companies cannot offer the same level of
bespoke, responsive service that Physiomics can and does.
Our strategy
Physiomics' strategy is to grow its fee for service business
model by leveraging its own proprietary modelling and simulation
technology to the benefit of its customers. Our main strategic aims
are to:
-- Form close partnerships with customers, attract repeat
business and grow alongside them (as evidenced by having now worked
on four assets with Bicycle Therapeutics and by repeat business
with Merck and CellCentric);
-- Diversify the customer base by working with a variety of
commercial and not-for-profit clients (such as the NIHR grant to
fund a personalised medicine study announced in March 2020);
-- Broaden our geographical presence in Europe and North America
by leveraging the Company's existing contact base and increasing
marketing efforts (our most recent new client, Astellas Pharma is
based in the US and Japan);
-- Work with a mix of early pre-clinical stage projects and high
value clinical development phase of oncology (we have active
translational stage projects with Merck, Bicycle Therapeutics,
CellCentric and Astellas Pharma); and
-- Develop new, complementary areas of business such as
immune-oncology and personalised medicine that can add long term
value to the business.
Obligations under s172 of the Companies Act
The Directors are mindful of their obligations under s172(1) of
the Companies Act 2006 to act in good faith to promote the success
of the Company for the benefit of its members as a whole, and in
doing so have regard (amongst other matters) to the following:
Principle Company's actions
The likely consequences of any The Company has a long term vision
decision in the long term. as set out in this report.
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The interests of the company's The Company values its employees
employees. and implements training, offers
development opportunities and has
in place appropriate incentive
programs to support their retention.
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The need to foster the company's The Company spends significant
business relationships with suppliers, effort in reaching out to new and
customers and others. existing customers and in soliciting
their feedback following engagements.
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The impact of the company's operations The Company's operations have minimal
on the community and the environment. impact on the community and environment.
As a result of COVID-19, home working
has been implemented so the environmental
costs of commuting have been further
reduced.
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The desirability of the company The Company maintains a high standard
maintaining a reputation for high of business ethics, complying with
standards of business conduct. the QCA code for corporate governance.
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The need to act fairly as between The Company treats all members
members of the company. equitably and attempts to ensure
a timely and accurate flow of information
to all members.
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Review of Business
The Company is principally engaged in providing consulting
services to pharmaceutical companies in the areas of outsourced
quantitative pharmacology and computational biology.
-- Total income (revenue and grant income) increased 7% to GBP841,649 (2019: GBP783,101)
-- The operating loss decreased 33% to GBP134,385 (2019: GBP201,219)
-- The loss after taxation decreased 38% to GBP64,424 (2019: GBP104,040)
-- At 30 June 2020, the surplus of shareholders' funds was
GBP1,314,981 (30 June 2019: GBP607,914)
-- Cash and cash equivalents at 30 June 2020 of GBP1,047,860 (30 June 2019: GBP405,366)
Consulting Business
Physiomics' consulting business is at the heart of its offering
to clients. The Company uses its proprietary Virtual Tumour(TM)
software platform but also develops mathematical models from
scratch and leverages models in the public domain. It is a
combination of our technology and the oncology experience of our
team that enables us to be able to deliver clients both a targeted
product offering that meets their needs whilst at the same time
delivering value for money. We believe that we are unique in
offering a combination of:
-- Deep experience and knowledge of oncology;
-- An exclusive focus on model-based approaches to supporting our clients' R&D projects; and
-- A level of flexibility and responsiveness that is not
typically found in larger organisations.
We have continued to develop our brand through a variety of
marketing and business development activities including:
-- Expansion of our digital marketing strategy with
significantly increased social media activity focused on areas of
interest to our clients;
-- Use of a third-party marketing agency to conduct targeted
calls to potential new clients, generating a significantly
increased volume of potential new business discussions;
-- Despite the virtualisation of conferences this year due to
the ongoing COVID pandemic, we have presented at BioTrinity and
AACR; and
-- Development and dissemination of case studies based on actual client projects.
The Company has been successful in attracting repeat business
this year from clients such as Bicycle Therapeutics, CellCentric as
well as long-standing client Merck KGaA. The Company has now worked
with Merck for over eight years and is in the third year of the
major collaboration announced in November 2017.
The Company's clients in this financial year have been located
in the USA, UK and Europe. Recent marketing efforts have targeted
further business in the USA, where there is a high level of company
formation and funding and this has paid off in the form of the
recently announced contract with Japan and US-based Astellas Pharma
Inc. In terms of the mix of work, we continue to work across the
full spectrum of R&D from discovery to development, though we
continue to focus increasingly on translational projects involving
assets entering clinical development for the first time. This is
particularly exciting, as it raises our profile and can involve
exposure to regulatory authorities. The Company continues to work
in the immuno-oncology space with several of its clients, including
the recently announced Astellas Pharma, and it is anticipated that
the industry focus on this treatment approach is likely to continue
for some time.
Personalised Medicine
The personalised medicine and digital health space continues to
generate significant interest from both investors and healthcare
systems. Many start-ups in this area focus on the use of genetic
markers or the pattern-recognition capabilities of artificial
intelligence applications. However, we believe that there is a
significant opportunity in the analysis of existing clinical data
to identify better ways to treat patient using existing drugs and
procedures.
In April 2019, we completed our second Innovate UK funded
project in this field in which we developed a demonstration version
of a tool to optimise dosing of docetaxel in castrate resistant,
metastatic prostate cancer patients. The key outcomes of the
project were presented in a poster at the prestigious American
Association for Cancer Research Annual Meeting in March 2019. In
parallel, working with the Oxford Academic Health Sciences Network,
we were able to access some of the UK's leading clinicians in this
space which culminated in our being invited to present at an event
jointly sponsored by the Royal Marsden Hospital NHS Trust, the
Institute of Cancer Research and the National Institute for Health
Research. In March 2020, the Company announced a further grant from
the NIHR of up to GBP150k which is being used to fund an
observational clinical trial at Portsmouth's Technology Trials
Unit. The purpose of this trial is to gather additional patient
data to validate and further develop the Company's personalised
dosing tool. Subject to any restrictions imposed due to COVID 19,
the trial is now expected to start in Q4 2020 and will last up to
12 months. In parallel, the Company is focused on finding an
appropriate commercial partner to gain any required regulatory
approvals to make the tool available in a real-world clinical
environment and, to this end, the Company is also in discussion
with a company with an established presence in this field.
Strategic and financial performance indicators
The Company is focused on the creation of long-term value for
its shareholders.
The Directors consider that the key performance indicators are
those that communicate the financial performance and strength of
the Company as a whole, these being revenue, profitability, and
shareholders' funds. In the last four financial years (from YE June
2017 to YE June 2020) revenues have increased 264%, losses after
tax have decreased 84% and net assets increased 301%.
Principal Risks
The Company faces a number of risks on the way to building
shareholder value. The Company maintains a risk register that
identifies specific risks, their potential impact, their likelihood
and mitigating actions. This register is updated as required and on
an annual basis as a minimum. Some selected key risks are addressed
below.
Risk Description Mitigation
Loss of Currently the business has In the last two years the Company
major customer a high dependence on a small has been successful in growing
number of customers. This its pipeline of business, broadening
leads to the risk that a its customer base and reducing
large customer could significantly its reliance on major customers
reduce or cancel its contracts and has also secured an agreement
with the Company. with its major customer Merck
KGaA that envisages a multi-year
relationship and is currently
in its third year. Additionally,
the Company has recently signed
a further big pharma client,
Astellas Pharma Inc., as well
as securing repeat contracts
with CellCentric and Bicycle.
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Competition Physiomics operates in a Our focus on oncology and the
/ pricing competitive environment way in which we employ Virtual
pressure which could lead to pricing Tumour(TM) requires a combination
pressure. Whilst the business of technology and specialised
uses its own proprietary skills, which we believe is hard
technology a competitor to replicate.
could attempt to replicate
its Virtual Tumour(TM) technology. We continually develop our model
to improve the scope and applicability
of the technology, adding further
value to our clients and differentiating
our service from our competitors.
In addition, in the last two
years we have developed a personalised
medicine offering that we are
currently seeking to commercialise
and which would help reduce dependency
on our consulting business.
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Personnel The success and future growth The Company seeks to recruit,
& skills of the Company is in part develop, and manage talent on
dependent on the continued a continuous basis and have built
performance and delivery a network of contracted specialists
of certain Directors, managers, who can provide additional resource
key staff and contractors. when required.
The Company operates in In order to attract the best
a highly specialised field talent, the Company offers competitive
where there is strong competition packages to its staff which includes
for required skills and a share option scheme, private
talent. medical insurance and flexible
working. A collegiate working
Key personnel leaving the environment and opportunities
Company could lead to a for personal and professional
short-term reduced capacity development also help to maintain
to service client projects. staff satisfaction.
The Company recently took on
an intern and is recruiting for
a full time position. In both
cases a high number of qualified
applications have been received.
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Financial The financial risks faced The board addresses financial
by the Company include the uncertainties by monitoring actual
ability to cover working performance against internal
capital needs, raise sufficient projections and responding to
funds to support the Company significant variances. The Company
through to profitability also employs tight cost controls
and failure to secure further across the business and has from
contracts. time to time raised funds from
investors.
The process of winning major
contracts is typically protracted The Company seeks to ensure cash
and the Company operates availability for working capital
in a competitive environment. purposes and to reduce credit
This means the Company often risk arising from cash and short
faces significant uncertainties term deposits with banks and
in its cash flow. other financial institutions
by holding deposits with an institution
with a medium grade credit rating
or better.
Following completion of the recent
fundraise, the Company had cash
and cash equivalents of over
GBP1.0 million at the year end,
which the board believes is sufficient
for its current needs and to
enable it to increase its marketing
spend to expand its client base.
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Regulation The Company's customers The Company regularly reviews
Changes are predominately pharmaceutical regulations changes through proactive
companies who require outsourced discussions with key industry
quantitative pharmacology officials, professional advisors
and computational biology and regulatory bodies where appropriate.
services. There is a risk
that the business model Major agencies such as the FDA
is impacted by future changes are actively promoting the use
in regulations in the medical of modelling and simulation and
and pharmaceutical industry. issue advisory papers which set
out their thinking.
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Systems The Company is dependent Continuity of access to data
& infrastructure on its IT technical infrastructure and integrity of data is maintained
and systems for the management through the implementation of
of its core operations and a system of data storage, offsite
research and development backup and monitoring of key
programmes. coding and modelling data. In
the most recent financial year,
the company invested further
in a server dedicated to high
speed computation which has significantly
reduced the time required to
complete complex simulations.
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COVID 19 The current COVID 19 pandemic Despite some clients experiencing
has far-reaching consequences delays in clinical trials, there
for many companies. has been no appreciable drop
off in client commitments to
new projects.
The Company has also sought to
mitigate direct risk of COVID
19 infection by implementing
home working since March 2020.
This has been achieved seamlessly
with no discernible impact on
business operations.
The board reviews risks relating
to COVID 19 on a monthly basis.
The Directors have considered
and assessed the impact of COVID-19
on the Company's projections
and cashflows. Taking into account
COVID-19, the Directors believe
that the Company has sufficient
funds to operate for at least
12 months from the signing date
of these financial statements.
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By order of the board
Dr Paul Harper
Chairman
Directors' Report
The Directors submit their report and the audited financial
statements of Physiomics Plc for the year ended 30 June 2020.
Results
There was a loss for the year after taxation amounting to
GBP64,424 (2019 loss: GBP104,040). In view of accumulated losses,
and given the stage of the Company's development, the Directors are
unable to recommend the payment of a dividend.
Directors
The directors who served during the year were:
Dr P B Harper
Dr J S Millen
Dr C D Chassagnole
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare the financial statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU). Under company law the Directors must not
approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
Company and the financial performance and cash flows of the Company
for that year.
The financial statements are required by law, and IFRS as
adopted by the EU, to give a true and fair view of the state of
affairs of the Company.
In preparing the Company financial statements, the Directors are
required to:
a. select suitable accounting policies and then apply them consistently;
b. make judgements and estimates that are reasonable and prudent;
c. state whether in preparation of the financial statements the
Company has complied with IFRS as adopted by the EU, subject to any
material departures disclosed and explained in the financial
statements; and
d. prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Directors are also responsible for the maintenance and
integrity of the Physiomics Plc website. Legislation in the United
Kingdom governing the preparation and dissemination of the
financial statements may differ from legislation in other
jurisdictions.
Substantial shareholdings
The Company has been informed that as at 22 September 2020, the
following shareholders had over 3% interests in the issued ordinary
shares of the Company.
Holding
%
Mr Zahid Ali* 5.12%
Mr Paul McKillen** 3.08%
* Mr Zahid Ali notified the Company on 10 September 2020 that he
held 4,982,142 ordinary shares (which represents a current interest
of 5.12% in the Company).
** Mr Paul McKillen notified the Company on the 19 July 2019
that he held 3,000,000 ordinary shares (which represents a current
interest of 3.08% in the Company).
On 22 September 2020, Dr Paul Harper held 668,564 ordinary
shares, Dr Jim Millen held 1,386,747 ordinary shares and Dr
Christophe Chassagnole held 602,723 ordinary shares. The holding
percentages were 0.69%, 1.42% and 0.62% respectively.
Directors' remuneration
Details of Directors' remuneration in the year ended 30 June
2020 is set out below:
Total Total
Emoluments Bonus Benefits Pension Contributions 2020 2019
GBP GBP GBP GBP GBP GBP
Dr P B Harper 37,000 - - - 37,000 35,500
Dr J S Millen 123,500 - 1,647 10,400 135,547 142,388
Dr C D Chassagnole 65,697 - 1,432 9,062 76,191 76,142
Total 226,196 - 3,079 19,462 248,738 254,030
----------- ------ --------- ---------------------- -------- --------
Post balance sheet events
The only material post-balance sheet event was the award of a
contract by Astellas Pharma Inc. on 31 July 2020.
Statement as to disclosure of information to auditors
The Directors in office on 29 September 2020 have confirmed
that, as far as they are aware, there is no relevant audit
information of which the auditors are unaware. Each of the
Directors have confirmed that they have taken all the steps that
they ought to have taken as Directors in order to make themselves
aware of any relevant audit information and to establish that it
has been communicated to the auditors.
Going concern, responsibilities and disclosure
After making appropriate enquiries, the Directors have a
reasonable expectation that the Company has adequate resources to
continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in
preparing the financial statements.
Internal controls and risk management
The board is responsible for the Company's system of internal
control and risk management and for reviewing its effectiveness.
The Directors have a reasonable expectation that the Company will
safeguard the Company's assets. The risk management process and
internal control systems are designed to manage rather than
eliminate the risk of failing to achieve business objectives and
can only provide reasonable, but not absolute, assurance against
material misstatement or loss. The key features of the Company's
system of internal control are as follows:
-- a clearly defined organisational structure and set of objectives;
-- the executive Directors play a significant role in the day to
day operation of the business; and
-- detailed monthly management accounts are produced for the
board to review and take appropriate action.
Annual General Meeting
The Company is closely monitoring the COVID-19 situation,
including UK Government guidance and will continue to do so in the
lead up to the AGM. The health of our shareholders, employees and
stakeholders remains extremely important to us and accordingly, the
board has taken into consideration the current UK government stay
at home measures as well as ICSA guidance. Should these directives
remain in place up to the AGM, shareholders, advisors and other
guests will not be allowed to attend the AGM in person and anyone
seeking to attend the meeting will be refused entry. As such,
shareholders should note they are not entitled to attend the AGM in
person unless notified otherwise via the Company's website at
www.physiomics.co.uk .
Shareholders are requested to therefore submit their votes, in
respect of the business to be discussed, via proxy as early as
possible. Shareholders should appoint the Chair of the meeting as
their proxy. If a shareholder appoints someone else as their proxy,
that proxy will not be able to attend the meeting in person or cast
the shareholder's vote.
The business at the AGM will be curtailed to the formal business
section only, with no wider presentations on business performance
or Q&A. If any shareholder has a question they would like to
pose to the board, this should be submitted to the Chair via
info@physiomics.co.uk. In addition, as detailed in our announcement
of 23 September 2020, the Company will be holding an investor
presentation at 11.00 a.m. on 5 October 2020. Please see this
announcement for details of how to register for this event.
In the event that further disruption to the 2020 AGM becomes
unavoidable, we will announce any changes to the meeting (such as
timing or venue). The website also provides links to the annual
report and accounts, interim results and other relevant
announcements immediately after they have been made available via
RNS.
The Annual General Meeting of the Company will be held at the
offices of Physiomics Plc, The Magdalen Centre, Oxford Science
Park, Oxford OX4 4GA at 10.00 a.m. on 17 November 2020.
By order of the board
Dr Paul Harper, Chairman
Independent Auditors' Report to the Members of Physiomics
Plc
Opinion
We have audited the financial statements of Physiomics Plc for
the year ended 30 June 2020 which comprise the income statement,
the statement of comprehensive income, the statement of financial
position, the cash flow statement, the statement of changes in
equity and notes to the financial statements, including significant
accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law and
International Financial Reporting Standards (IFRSs) as adopted by
the European Union.
In our opinion:
-- the financial statements give a true and fair view of the
state of the Company's affairs as at 30 June 2020 and of its loss
for the year then ended;
-- the financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union; and
-- the financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the
FRC's Ethical Standard as applied to listed entities and we have
fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in
relation to which the ISAs (UK) require us to report to you
where:
-- the directors' use of the going concern basis of accounting
in the preparation of the financial statements is not appropriate;
or
-- the directors have not disclosed in the financial statements
any identified material uncertainties that may cast significant
doubt about the Company's ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months
from the date when the financial statements are authorised for
issue.
Our assessment of risks of material misstatement
The assessed risks of material misstatement described below are
those that had the greatest effect on our audit strategy, the
allocation of resources in the audit and directing the efforts of
the engagement team.
Risk How the Scope of our audit responded
to the risk
Management override of controls We examined journals posted around
Journals can be posted that the year end, specifically focusing
significantly alter the Financial on areas which are more easily manipulated
Statements. such as accruals, prepayments, investment
valuation and the bank reconciliation.
------------------------------------------------
Going Concern and COVID-19 We reviewed the Directors' assessment
There is a risk that the Company of the risks and impacts of COVID-19
is not a going concern and have on the business. We compared this
been impacted from COVID-19 assessment to our own understanding
materially. of the risks, and the nature of the
Company's operations and customer
base. We then conducted a review of
going concern in respect of COVID-19,
which included reviewing forecasts
and current trading performance, and
carrying out stress testing. The work
undertaken considered a period of
at least 12 months from the date of
approving these financial statements.
The disclosures in the financial statements
adequately reflect the Directors'
conclusions around the uncertainties
and impact of COVID-19 and, that the
going concern assumption remains appropriate.
------------------------------------------------
Fraud in Revenue Recognition Income was tested on a sample basis
There is a risk that revenue from contracts. No evidence of fraud
is materially understated due or other understatement was identified.
to fraud.
------------------------------------------------
Accounting Estimates All areas were examined to identify
Potential risk of inappropriate any potential accounting estimates.
accounting estimates giving These estimates were then reviewed
rise to misstatement in the and tested for adequacy.
accounts.
------------------------------------------------
Overstatement of Administrative A proof in total calculation and substantive
Expenses testing were both undertaken and no
There is a risk that the Company's evidence of overstatement was identified.
administrative expenses are
overstated.
------------------------------------------------
Grant Income Grant income was reviewed and a sample
There is a risk that grant income basis from contracts. No evidence
may be materially misstated. of misstatement was identified.
------------------------------------------------
Our audit procedures relating to these matters were designed in
the context of our audit of the Financial Statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Our application of materiality
We define materiality as the magnitude of misstatement in the
Financial Statements that of materiality makes it probable that the
economic decisions of a reasonably knowledgeable person would be
changed or influenced. We use materiality both in planning and in
the scope of our audit work and in evaluating the results of our
work.
We determined materiality for the Company to be GBP16,560. We
agreed with the Audit Committee that we would report to them all
audit differences in excess of 5% of materiality, as well as
differences below that which would, in our view, warrant reporting
on a qualitative basis. We also report to the Audit Committee on
disclosure matters that we identified when assessing the overall
presentation of the Financial Statements.
An overview of the scope of our audit
An audit involves obtaining evidence about the amounts and
disclosures in the Financial Statements sufficient to give
reasonable assurance that the Financial Statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are
appropriate to the Company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness
of significant accounting estimates made by the Directors; and the
overall presentation of the Financial Statements. In addition we
read all the financial and non-financial information in the Annual
Report to identify material inconsistencies with the audited
Financial Statements and to identify any information that is
apparently materially incorrect based on, or materially
inconsistent with, the knowledge acquired by us in the course of
performing the audit. If we become aware of any apparent material
misstatement or inconsistencies we consider the implications for
our report.
Other information
The directors are responsible for the other information. The
other information comprises the information included in the annual
report other than the financial statements and our auditor's report
thereon. Our opinion on the financial statements does not cover the
other information and, except to the extent otherwise explicitly
stated in our report, we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a
material misstatement in the financial statements or a material
misstatement of the other information. If, based on the work we
have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We
have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act
2006
In our opinion, based on the work undertaken in the course of
the audit:
-- the information given in the strategic report and the
directors' report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
-- the strategic report and the directors' report have been
prepared in accordance with applicable legal requirements
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company
and its environment obtained in the course of the audit, we have
not identified material misstatements in the strategic report or
the directors' report.
We have nothing to report in respect of the following matters in
relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
-- adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
-- the financial statements are not in agreement with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities
statement set out on page 16 of the full annual report, the
directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair
view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are
responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of
the financial statements in located on the Financial Reporting
Council's website at www.frc.org.uk/auditorsreponsibilities. This
description forms part of our auditor's report.
Use of our report
This report is made solely to the Company's members, as a body,
in accordance with chapter 3 of part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Benjamin Bidnell (Senior Statutory Auditor)
For and on behalf of Shipleys LLP,
Chartered Accountants and Statutory Auditor
10 Orange Street
Haymarket
London WC2H 7DQ
Income Statement for the year ended 30 June 2020
Year Year
ended ended
30 June 30 June
2020 2019
Notes GBP GBP
Revenue 3 799,055 718,965
Other operating income 3 42,594 64,136
Total income 841,649 783,101
Net operating expenses (976,034) (984,320)
Operating loss 4 (134,385) (201,219)
Finance Income 7 679 470
Loss before taxation (133,706) (200,749)
Income tax income 9 69,282 96,709
--------- ---------
Loss for the year attributable
to equity shareholders 26 (64,424) (104,040)
========= =========
Earnings per share (shown
in pence) 10
Basic (0.09)p (0.14)p
Diluted (0.09)p (0.14)p
Statement of Comprehensive Income
Year ended Year ended
30 June 30 June
2020 2019
GBP GBP
Loss for the year (64,424) (104,040)
Other comprehensive income - -
Total comprehensive income/ (expense) for the
year (64,424) (104,040)
Attributable to:
Equity holders (64,424) (104,040)
Statement of Financial Position as at 30 June 2020
2020 2019
Non-current assets - Notes GBP GBP
Intangible assets 12 3,864 1,373
Property, plant and equipment 13 11,536 18,438
Investments 14 - -
----------- -----------
15,400 19,811
----------- -----------
Current assets
Trade and other receivables 15 383,238 269,110
Cash and cash equivalents 1,047,860 405,366
----------- -----------
1,431,098 674,476
----------- -----------
Total assets 1,446,498 694,287
----------- -----------
Current liabilities
Trade and other payables 19 123,819 85,123
Deferred revenue 20 7,698 1,250
----------- -----------
131,517 86,373
----------- -----------
Net current assets 1,299,581 588,103
----------- -----------
Net assets 1,314,981 607,914
=========== ===========
Equity
Called up share capital 23 1,275,752 1,181,038
Share premium account 24 5,896,737 5,228,172
Other reserves 25 199,954 191,742
Retained earnings 26 (6,057,462) (5,993,038)
----------- -----------
Total equity 1,314,981 607,914
=========== ===========
Statement of Changes in Equity for the year ended 30 June
2020
Share Share Share-based Retained Total
capital premium com-pensation earnings
account on reserve
Notes GBP GBP GBP GBP GBP
Balance at 1 July 2018 1,181,038 5,228,172 169,814 (5,888,998) 690,026
Loss and total
comprehensive
Income/(expense) for
the year - - - (104,040) (104,040)
Issue of share capital
(net of costs) 23 - - - - -
Transfer to other
reserves 25 - - 21,928 - 21,928
---------- ---------- -------------- ------------ -------------------
Balance at 30 June
2019 1,181,038 5,228,172 191,742 (5,993,038) 607,914
---------- ---------- -------------- ------------ -------------------
Loss and total
comprehensive
income/ (expense) for
the year - - - (64,424) (64,424)
Issue of share capital
(net of costs) 23 94,714 668,565 - - 763,279
Transfer to other
reserves 25 - - 8,212 - 8,212
---------- ---------- -------------- ------------ -------------------
Balance at 30 June
2020 1,275,752 5,896,737 199,954 (6,057,462) 1,314,981
========== ========== ============== ============ ===================
Cash Flow Statement for the year ended 30 June 2020
2020 2019
Notes GBP GBP GBP GBP
Cash flows from operating
activities
Cash absorbed by operations 33 (200,008) (226,244)
Tax refunded 83,638 82,472
----------- -----------
Net cash outflow from operating
activities (116,370) (143,772)
Investing activities
Purchase of intangible assets (2,913) (1,385)
Purchase of tangible fixed
assets (2,181) (21,816)
Interest received 679 470
---------- ----------
Net cash used in investing
activities (4,415) (22,731)
Financing activities
Proceeds from issue of shares 828,750 -
Share issue costs (65,471) -
---------- ----------
Net cash generated from financing
activities 763,279 -
----------- -----------
Net increase in cash and
cash equivalents 642,494 (166,503)
Cash and cash equivalents
at beginning of year 405,366 571,869
----------- -----------
Cash and cash equivalents
at end of year 1,047,860 405,366
=========== ===========
Notes to the Financial Statements
1 Accounting policies
Company information
Physiomics Plc is a company limited by shares incorporated in
England and Wales. The registered office is The Magdalen Centre,
Oxford Science Park, Robert Robinson Avenue, Oxford, OX4 4GA. The
Company's ordinary shares of 0.4p each are admitted to trading on
the AIM market of the London Stock Exchange plc.
1.1 Accounting convention
The financial statements have been prepared in accordance with
International Financial Reporting
Standards (IFRS) as adopted for use in the European Union and
with those parts of the Companies Act
2006 applicable to companies reporting under IFRS, except as
otherwise stated.
The financial statements have been prepared on the historical
cost basis. The principal accounting policies adopted are set out
below.
1.2 Going concern
The accounts have been prepared on the going concern basis. The
Company primarily operates in the relatively defensive
pharmaceutical industry which the board expects to be less affected
by current economic conditions, including the potential
consequences of Brexit, compared to other industries.
The Company had GBP1,047,860 of cash and cash equivalents as at
30 June 2020 (2019 GBP405,366).
The board operates an investment policy under which the primary
objective is to invest in low-risk cash or cash equivalent
investments to safeguard the principal.
The Company's projections, taking into account anticipated
revenue streams, show that the Company has sufficient funds to
operate for at least the next 12 months. In coming to this
conclusion, the board notes that current cash and currently
contracted projects are projected to more than cover budgeted
expenses for this period.
After reviewing the Company's projections, the Directors believe
that the Company is adequately placed to manage its business and
financing risks for the next twelve months. Accordingly, they
continue to adopt the going concern basis in preparing the annual
report and accounts.
1.3 Revenue recognition
The revenue shown in the income statement relates to amounts
received or receivable from the provision of services associated
with outsourced systems and computational biology services to
pharmaceutical companies.
Revenue from the provision of the principal activities is
recognised by reference to the stage of completion of the
transaction at the balance sheet date where the amount of revenue
can be measured reliably and sufficient work has been completed
with certainty to ensure that the economic benefit will flow to the
Company.
1.4 Intangible assets other than goodwill
Intangible assets acquired separately from third parties are
recognised as assets and measured at cost.
Following initial recognition, intangible assets are measured at
cost or fair value at the date of acquisition less any amortisation
and any impairment losses. Amortisation costs are included within
the net operating expenses disclosed in the income statement.
Intangible assets are amortised over their useful lives as
follows:
Useful life Method
Patents and licenses 15 years Straight line
Trademarks 10 years Straight line
Useful lives are also examined on an annual basis and
adjustments, where applicable are made on a prospective basis. The
Company does not have any intangible assets with indefinite
lives.
1.5 Tangible fixed assets
Tangible fixed assets are initially measured at cost and
subsequently measured at cost or valuation, net of depreciation and
any impairment losses.
Depreciation is recognised so as to write off the cost or
valuation of assets less their residual values over their useful
lives on the following bases:
Fixtures and fittings 3 years straight line
IT Equipment 3 years straight line
The gain or loss arising on the disposal of an asset is
determined as the difference between the sale proceeds and the
carrying value of the asset and is recognised in the profit and
loss account.
1.6 Research and development expenditure
Expenditure on research activity is recognised as an expense in
the period in which it is incurred.
1.7 Impairment of tangible and intangible assets
Property, plant and equipment and intangible assets are reviewed
for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is the
higher of an asset's fair value less costs to sell and value in
use. For purposes of assessing impairment, assets that do not
individually generate cash flows are assessed as part of the cash
generating unit to which they belong. Cash generating units are the
lowest levels for which there are cash flows that are largely
independent of the cash flows from other assets or groups of
assets.
1.8 Fair value measurement
IFRS 13 establishes a single source of guidance for all fair
value measurements. IFRS 13 does not change when an entity is
required to use fair value, but rather provides guidance on how to
measure fair value under IFRS when fair value is required or
permitted. The resulting calculations under IFRS 13 affected the
principles that the Company uses to assess the fair value, but the
assessment of fair value under IFRS 13 has not materially changed
the fair values recognised or disclosed. IFRS 13 mainly impacts the
disclosures of the Company. It requires specific disclosures about
fair value measurements and disclosures of fair values, some of
which replace existing disclosure requirements in other
standards.
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at
call with banks, other short-term liquid investments with original
maturities of three months or less.
1.10 Financial assets
Financial assets are recognised in the Company's statement of
financial position when the Company becomes party to the
contractual provisions of the instrument.
Financial assets are classified into specified categories. The
classification depends on the nature and purpose of the financial
assets and is determined at the time of recognition.
Financial assets are initially measured at fair value plus
transaction costs, other than those classified as fair value
through the income statement, which are measured at fair value.
Trade and other receivables
Trade receivables are recognised and carried at the lower of
their original invoiced value and recoverable amount. Balances are
written off when the probability of recovery is considered to be
remote.
Impairment of financial assets
Financial assets, other than those at fair value through the
income statement, are assessed for indicators of impairment at each
reporting end date.
Financial assets are impaired where there is objective evidence
that, as a result of one or more events that occurred after the
initial recognition of the financial asset, the estimated future
cash flows of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual
rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and
rewards of ownership to another entity.
1.11 Financial liabilities
Financial liabilities are classified as either financial
liabilities at fair value through the income statement or other
financial liabilities.
Financial liabilities are classified according to the substance
of the contractual arrangements entered into.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the
Company's obligations are discharged, cancelled, or they
expire.
1.12 Equity instruments
Equity instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs. An equity instrument
is any contract that evidences a residual interest in the assets of
the Company after deducting all of its liabilities.
1.13 Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense
that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company's
liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the reporting end
date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises
from goodwill or from the initial recognition of other assets and
liabilities in a transaction that affects neither the tax profit
nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each
reporting end date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered. Deferred tax is
calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the income statement, except
when it relates to items charged or credited directly to equity, in
which case the deferred tax is also dealt with in equity. Deferred
tax assets and liabilities are offset when the Company has a
legally enforceable right to offset current tax assets and
liabilities and the deferred tax assets and liabilities relate to
taxes levied by the same tax authority.
1.14 Employee benefits
The costs of short-term employee benefits are recognised as a
liability and an expense.
The cost of any unused holiday entitlement is recognised in the
period in which the employee's services are received.
Termination benefits are recognised immediately as an expense
when the Company is demonstrably committed to terminate the
employment of an employee or to provide termination benefits.
1.15 Retirement benefits
Payments to defined contribution retirement benefit schemes are
charged as an expense as
they fall due.
1.16 Share-based payments
The Company issues equity settled share-based payments to
certain employees. Equity settled share-based payments are measured
at fair value at the date of grant. The fair value determined at
the grant date is expensed on a straight-line basis over the
vesting period. Fair value is measured by use of a Black-Scholes
model.
1.17 Leases
At inception, the Company assesses whether a contract is, or
contains, a lease within the scope of IFRS 16. A contract is, or
contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for
consideration. Where a tangible asset is acquired through a lease,
the Company recognises a right-of-use asset and a lease liability
at the lease commencement date. Right-of-use assets are included
within tangible fixed assets, apart from those that meet the
definition of investment property.
The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date plus any
initial direct costs and an estimate of the cost of obligations to
dismantle, remove, refurbish, or restore the underlying asset and
the site on which it is located, less any lease incentives
received.
The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the earlier of
the end of the useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-of-use assets
are determined on the same basis as those of other tangible fixed
assets. The right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The lease liability is initially measured at the present value
of the lease payments that are unpaid at the commencement date,
discounted using the interest rate implicit in the lease or, if
that rate cannot be readily determined, the company's incremental
borrowing rate. Lease payments included in the measurement of the
lease liability comprise fixed payments, variable lease payments
that depend on an index or a rate, amounts expected to be payable
under a residual value guarantee, and the cost of any options that
the company is reasonably certain to exercise, such as the exercise
price under a purchase option, lease payments in an optional
renewal period, or penalties for early termination of a lease.
The company has elected not to recognise right-of-use assets and
lease liabilities for short-term leases of machinery that have a
lease term of 12 months or less, or for leases of low-value assets
including IT equipment. The payments associated with these leases
are recognised in profit or loss on a straight-line basis over the
lease term.
In the comparative period, as a lessee applying IAS 17, the
company classified leases as finance leases whenever the terms of
the lease transferred substantially all the risks and rewards of
ownership to the lessees. All other leases were classified as
operating leases. Assets held under finance leases were recognised
as assets at the lower of the assets' fair value at the date of
inception and the present value of the minimum lease payments. The
related liability was included in the balance sheet as a finance
lease obligation. Lease payments were treated as consisting of
capital and interest elements and the interest was charged to
profit or loss so as to produce a constant periodic rate of
interest on the remaining balance of the liability. Rentals payable
under operating leases, less any lease incentives received, were
charged to profit or loss on a straight line basis over the term of
the relevant lease except where another more systematic basis was
more representative of the time pattern in which economic benefits
from the leased asset were consumed.
1.18 Government grants
Government grants are recognised when there is reasonable
assurance that the grant conditions will be met and the grants will
be received.
Government grants of a revenue nature are credited to the profit
and loss account in the same period as the related expenditure.
1.19 Foreign exchange
Transactions in currencies other than pounds sterling are
recorded at the rates of exchange prevailing at the dates of the
transactions. At each reporting end date, monetary assets and
liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the reporting end date.
Gains and losses arising on translation are included in the income
statement for the period.
1.20 Segment reporting
A business segment is a group of assets and operations engaged
in providing products or services that are subject to risks and
returns that are different from those of other business segments. A
geographical segment is engaged in providing products or services
within a particular economic environment that are subject to risks
and return that are different from those of segments operating in
other economic environments.
2 Critical accounting estimates and judgements
Revenue for projects started and completed during the financial
year is recognised in full during the year. Revenue from a project
which commences in one financial year and is completed in a
subsequent financial year is recognised over the life of the
project based on the expected period to completion as anticipated
at each balance sheet date less what has already been recognised
during a previous financial period or periods.
There were no other material accounting estimates or areas of
judgements required.
3 Revenue & segmental reporting
An analysis of the Company's revenue is as follows:
2020 2019
GBP GBP
Revenue 799,055 718,965
======== ========
Other operating income
Grant income 42,594 64,137
42,594 64,137
======== ========
The principal activities are the provision of outsourced systems
and computational biology services to pharmaceutical companies.
This activity comprises a single segment of operation of a sole
UK base and entirely UK based assets. Revenue was derived in the
UK, European Union and USA (2019: UK, European Union and USA) from
its principal activity.
4 Operating loss
2020 2019
GBP GBP
Operating loss for the period is stated after charging/(crediting):
Net foreign exchange losses/(gains) 169 (276)
Research and development costs - -
Government grants (42,594) (64,137)
Fees paid to the Company's auditor, refer to below 14,000 14,433
Depreciation of property, plant and equipment 9,083 8,381
Amortisation of intangible assets 422 12
Share-based payments 8,212 21,928
======== ========
5 Auditors remuneration
2020 2019
Fees payable to the Company's auditor and associates: GBP GBP
For audit services
Audit of the Company's financial statements 10,000 10,000
======== ========
For other services
Taxation compliance services 2,000 2,000
Audit-related assurance services - -
Other taxation services 2,000 1,183
Innovate UK grant related services - 1,250
-------- --------
Total fees 14,000 14,433
======== ========
6 Employees
The average monthly number of persons (including directors)
employed by the Company during the year was:
2020 2019
Number Number
7 7
=========== ============
Their aggregate remuneration comprised: 2020 2019
GBP GBP
Wages and salaries 408,051 420,315
Social security costs 44,785 48,361
Other pension and insurance benefit costs 35,636 22,662
----------- ------------
488,472 491,338
=========== ============
Details of the remuneration of Directors are included in the
Directors Report.
7 Finance income
2020 2019
GBP GBP
Interest income
Bank deposits 679 470
==== ====
8 Finance costs
Interest rate risk
The Company finances its operations by cash and short-term
deposits. The Company's policy on interest rate management is
agreed at board level and is reviewed on an ongoing basis. Other
creditors, accruals and deferred revenue values do not bear
interest.
Interest rate profile
The Company had no bank borrowings at the 30 June 2020 and 30
June 2019.
9 Income tax expense
Continuing operations
2020 2019
GBP GBP
Current tax
Research and development tax credit: current year (81,786) (96,142)
Adjustment in respect of prior years' research
and development 12,504 (567)
----------------- ----------
(69,282) (96,709)
================= ==========
The charge for the year can be reconciled to the loss per the
income statement as follows:
2020 2019
GBP GBP
Loss before taxation (133,706) (200,749)
================= ==========
Expected tax charge based on a corporation tax
rate of 19.00% (25,404) (38,142)
Expenses not deductible in determining taxable
profit 1,271 4,645
Unutilised tax losses carried forward - -
Adjustment in respect of prior years' research
and development 12,504 (567)
Research and development expenditure tax credit (81,786) (7,280)
Deferred / (accelerated) capital allowances 1,562 (2,613)
Research and development enhancement (48,254) (52,752)
Research and development enhancement 70,825 -
----------------- ----------
Tax charge for the period (69,282) (96,709)
================= ==========
At 30 June 2020 tax losses of GBP3,846,025, (2019: GBP3,811,775)
remained available to carry forward against future taxable trading
profits. These amounts are in addition to any amounts surrendered
for Research and Developments tax credits. There is an unrecognised
deferred tax asset of GBP729,527, (2019: GBP648,002).
10 Earnings per share
2020 2019
GBP GBP
Number of shares
Weighted average number of ordinary shares for
basic earnings per share 73,721,869 71,910,394
Earnings - Continuing operations
Loss for the period from continued operations (64,424) (104,040)
------------ ------------
Earnings for basic and diluted earnings per share
being net profit attributable to equity shareholders
of the Company for continued operations (64,424) (104,040)
============ ============
Earnings per share for continuing operations
Basic and diluted earnings per share (shown in
pence) (0.09) (0.14)
Basic and diluted earnings per share
From continuing operations (shown in pence) (0.09) (0.14)
-------- --------
(0.09) (0.14)
======== ========
The loss attributable to equity holders (holders of ordinary
shares) of the Company for the purpose of calculating the fully
diluted loss per share is identical to that used for calculating
the loss per share. The exercise of share options would have the
effect of reducing the loss per share and is therefore anti-
dilutive under the terms of IAS 33 'Earnings per Share'.
11 Financial instruments recognised in the statement of financial position
2020 2019
Held for trading: GBP GBP
Current financial assets
Trade and other receivables 78,863 107,622
Cash and cash equivalents 1,047,860 405,366
--------- ---------
1,126,723 512,988
========= =========
Current financial liabilities Trade and other
payables 109,029 70,626
Deferred revenue 7,698 1,250
--------- ---------
116,727 71,876
========= =========
The Company's financial instruments comprise cash and short-term
deposits. The Company has various other financial instruments, such
as trade debtors and creditors that arise directly from its
operations.
The main risks arising from the Company's financial instruments
are interest rate risk, liquidity risk and foreign currency risk.
The policies for managing these are periodically reviewed and
agreed by the board.
It is and has been throughout the year under review, the
Company's policy that no trading in financial instruments shall be
undertaken.
12 Intangible assets
Trademarks Patents Total
& Licenses
GBP GBP GBP
Cost
At 1 July 2018 - 75,646 75,646
---------------------- ----------- ------
At 30 June 2019 1,385 - 1,385
Additions - purchased 2,913 - 2,913
Disposals - - -
---------------------- ----------- ------
At 30 June 2020 4,298 - 4,298
---------------------- ----------- ------
Amortisation and impairment
At 1 July 2018 - 75,646 75,646
---------------------- ----------- ------
At 30 June 2019 12 - 12
Charge for the year 422 - 422
Eliminated on disposals - - -
---------------------- ----------- ------
At 30 June 2020 434 - 434
---------------------- ----------- ------
Carrying amount
At 30 June 2020 3,864 - 3,864
====================== =========== ======
At 30 June 2019 1,373 - 1,373
====================== =========== ======
13 Tangible fixed assets
Fixtures
and fittings IT equipment Total
Cost GBP GBP GBP
At 1 July 2018 2,206 43,400 45,606
Additions 1,154 20,662 21,816
Disposals (411) (7,525) (7,936)
-------------- ------------- --------
At 30 June 2019 2,949 56,537 59,486
-------------- ------------- --------
Additions 79 2,102 2,181
Disposals - - -
-------------- ------------- --------
At 30 June 2020 3,028 58,640 61,668
-------------- ------------- --------
Accumulated depreciation and impairment
At 1 July 2018 2,206 38,397 40,603
Charge for the year 96 8,285 8,381
Eliminated on disposal (411) (7,525) (7,936)
-------------- ------------- --------
At 30 June 2019 1,891 39,157 41,048
-------------- ------------- --------
Charge for the year 408 8,675 9,083
Eliminated on disposal - - -
-------------- ------------- --------
At 30 June 2020 2,300 47,832 50,132
-------------- ------------- --------
Carrying amount
At 30 June 2020 728 10,808 11,536
-------------- ------------- --------
At 30 June 2019 1,058 17,380 18,438
-------------- ------------- --------
At 30 June 2018 - 5,003 5,003
-------------- ------------- --------
14 Investments
Current Non-current
2020 2019 2020 2019
GBP GBP GBP GBP
Investment in subsidiaries - - - 1
Impairment of investment - - - (1)
------- ------- ------ ------
- - - -
======= ======= ======== ======
The Company owned 100% of E-Phen Limited, a dormant company
incorporated in the England and Wales. E-Phen Limited was dissolved
on 7 September 2019.
The Company has not designated any financial assets that are not
classified as held for trading as financial assets at fair value
through profit or loss.
15 Trade and other receivables
Due within one year
2020 2019
GBP GBP
Trade debtors 75,085 103,844
Other receivables 3,778 3,778
Corporation tax recoverable 81,786 96,142
VAT recoverable 10,475 22,518
Prepayments and accrued income 212,114 42,828
---------- ---------
383,238 269,110
========== =========
16 Fair value of trade receivables
There are no material differences between the fair value of
financial assets and the amount at which they are stated in the
financial statements.
17 Fair value of financial liabilities
There are no material differences between the fair value of
financial liabilities and the amount at which they are stated in
the financial statements.
18 Liquidity risk
The Company seeks to manage financial risk by ensuring that
sufficient liquidity is available to meet foreseeable needs and to
invest cash assets safely and profitably.
19 Trade and other payables
Due within one year
2020 2019
GBP GBP
Trade creditors 27,932 26,479
Accruals and deferred income 78,618 41,712
Social security and other taxation 14,790 14,497
Other creditors 2,479 2,435
123,819 85,123
=========== ========
20 Deferred revenue
2020 2019
GBP GBP
Arising from invoices in advance 7,698 1,250
===== =====
Analysis of deferred revenue
Deferred revenues are classified based on the amounts that are
expected to be settled within the next 12 months and after more
than 12 months from the reporting date, as follows:
2020 2019
GBP GBP
Current liabilities 7,698 1,250
===== =====
21 Retirement benefit schemes
Defined contribution schemes
The Company operates a defined contribution pension scheme for
all qualifying employees. The assets of the scheme are held
separately from those of the Company in an independently
administered fund.
The total costs charged to income in respect of defined
contribution plans is GBP29,719 (2019: GBP16,334).
As at the statement of financial position date the Company had
unpaid pension contributions totalling GBP2,479 (2019:
GBP2,435).
22 Share-based payment transactions
The Company operates two share option schemes: (1) under the
Enterprise Management Initiative Scheme ("EMI") and (2) an
unapproved share option scheme. Both are equity settled. Options
are granted with a fixed exercise price equal to the market price
of the shares under option at the date of grant. Some options are
subject to performance criteria relating to either share price
performance or the achievement of certain corporate milestones. The
contractual life of the options is 10 years from the date of
issue.
A summary of the options at the start and end of period for
directors and all other employees is presented in the following
table:
Outstanding Granted Forfeited Exercised Outstanding Exercisable Exercise Date
at start during during during at end at end price of Date
Holder of period period period period of period of period (p) grant of expiry
Dr. C.
Chassagnole 118,565 - 118,565 - - - 40.00 28-Feb-10 28-Feb-20
Dr. C.
Chassagnole 32,331 - - - 32,331 16,166 34.00 09-Nov-11 09-Nov-21
Dr. C.
Chassagnole 129,381 - - - 129,381 129,381 13.20 11-Feb-13 11-Feb-23
Dr. C.
Chassagnole 322,615 - - - 322,615 322,615 6.20 24-Mar-15 24-Mar-25
Dr. C.
Chassagnole 659,641 - - - 659,641 659,641 2.50 28-Feb-17 28-Feb-27
Dr. C.
Chassagnole 350,000 - - - 350,000 350,000 5.35 26-Mar-18 26-Mar-28
Dr. C.
Chassagnole 267,000 - - - 267,000 267,000 3.16 26-Mar-19 26-Mar-29
Dr. J.
Millen 1,453,923 - - - 1,453,923 1,453,923 2.50 28-Feb-17 28-Feb-27
Dr. J.
Millen 520,000 - - - 520,000 520,000 5.35 26-Mar-18 26-Mar-28
Dr. J.
Millen 400,000 - - - 400,000 400,000 3.16 26-Mar-19 26-Mar-29
Dr. P.
Harper 76,645 - 76,645 - - - 40.00 28-Feb-10 28-Feb-20
Dr. P.
Harper 12,932 - - - 12,932 6,466 34.00 09-Nov-11 09-Nov-21
Dr. P.
Harper 51,752 - - - 51,752 51,752 13.20 11-Feb-13 11-Feb-23
Dr. P.
Harper 129,046 - - - 129,046 129,046 6.20 24-Mar-15 24-Mar-25
Dr. P.
Harper 258,092 - - - 258,092 258,092 3.50 21-Dec-15 21-Dec-25
Dr. P.
Harper 140,000 - - - 140,000 140,000 5.35 26-Mar-18 27-Mar-28
Other staff 41,648 - 41,648 - - - 40.00 28-Feb-10 28-Feb-20
Other staff 91,107 - - - 91,107 45,554 34.00 09-Nov-11 09-Nov-21
Other staff 77,628 - - - 77,628 77,628 13.20 11-Feb-13 11-Feb-23
Other staff 188,605 - - - 188,605 188,605 6.20 24-Mar-15 24-Mar-25
Other staff 54,596 - - - 54,596 54,596 3.50 21-Dec-15 21-Dec-25
Other staff 403,781 - - - 403,781 403,781 2.50 28-Feb-17 28-Feb-27
Other staff 490,000 - - - 490,000 490,000 5.35 26-Mar-18 26-Mar-28
Other staff 533,000 - - - 533,000 533,000 3.16 26-Mar-19 26-Mar-29
Total 6,802,288 - 236,858 - 6,565,430 5,297,245
----------------------------------------- ---------------------------------- ---------------------------------- ---------------------------- ------------------------------ -------------------------------
The weighted average share price at the date of the grant for
share options granted in the year was GBPNil as no share options
were granted during the current year (2019: GBP0.0316).
The options outstanding at 30 June 2020 had an exercise price
ranging from GBP0.025 to GBP0.40, and a remaining contractual life
of 8 years.
During 2020, no options were granted. Options vest according to
time and performance-based criteria.
During 2019, options were granted on 26 March 2019. The weighted
average fair value of the options on the measurement date was
GBP0.011366. Options vest according to time and performance-based
criteria.
The options were granted with an exercise price of GBP0.032.
Fair value was measured using Black-Scholes share option pricing
model. Inputs were as follows:
2020 2019
Expected volatility 60.18% 60.18%
Expected life 2.34 years 2.34 years
Risk free rate 0.664% 0.664%
The expected volatility is based on the sixty day average
historical volatility of the Company over 3 years.
The expected life of options is now based on the share option
exercise history with the company. The risk free rate of return is
derived from UK treasury yields at 2 and 3 years.
Total expenses of GBP8,212 related to equity settled share-based
payment transactions were recognised in the year. (2019
-GBP21,928).
23 Share capital
2020 2019
GBP GBP
Ordinary share capital, issued and fully paid
95,588,965 Ordinary of 0.4p each (2019: 71,910,394) 382,355 287,641
2,481,657,918 Deferred of 0.036p each 893,397 893,397
--------- ---------
1,275,752 1,181,038
========= =========
The ordinary shares carry no rights to fixed income. The
deferred shares have no voting rights and have no rights to receive
dividends or other income.
Reconciliation of movements during the year: Ordinary Deferred Number
Number
At 1 July 2019 71,910,394 2,481,657,918
Issue of fully paid shares 23,678,571 -
At 30 June 2020 95,588,965 2,481,657,918
========== ===============
Current year changes to Ordinary share capital
On 3 June 2020, the Company issued 23,678,571 ordinary shares of
0.4p at a price of 3.5p per ordinary share for working capital
purposes.
24 Share premium account
GBP
At 30 June 2018 & at 30 June 2019 5,228,172
Issue of new shares 734,036
Share issue expenses (65,471)
--------------
At 30 June 2020 5,896,737
==============
The share premium account consists of proceeds from the issue of
shares in excess of their par value (which is included in the share
capital account).
25 Other reserves: share-based compensation reserve
GBP
At 30 June 2018 169,814
Additions 21,928
------------
At 30 June 2019 191,742
Additions 8,212
------------
At 30 June 2020 199,954
============
The share-based compensation reserve represents the credit
arising on the charge for share options calculated in accordance
with IFRS 2.
26 Retained earnings
GBP
At 1 July 2018 (5,888,998)
Loss for the period (104,040)
----------------
At 30 June 2019 (5,993,038)
Loss for the period (64,424)
----------------
At 30 June 2020 (6,057,462)
================
Retained earnings includes an amount of GBP237,889 (2019:
GBP237,889) in relation to the Equity Swap Agreement in 2014 which
under the Companies Act is not distributable.
27 Operating lease commitments
Lessee
Amounts recognised in the income statement as an expense during
the period in respect of operating lease arrangements are as
follows:
2020 2019
GBP GBP
Minimum lease payments under operating leases 59,293 57,331
============= =============
At the reporting end date, the Company had outstanding
commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
2020 2019
GBP GBP
Within one year 6,013 4,818
------------ ------------
6,013 4,818
============ ============
28 Capital commitments
At 30 June 2020 and 30 June 2019 the Company had no capital
commitments.
29 Capital risk management
The capital structure of the Company consists of cash and cash
equivalents and equity attributable to equity holders of the
Company, comprising issued capital, reserves and retained earnings
as disclosed in notes 23 to 26.
The board's policy is to maintain an appropriate capital base so
as to maintain investor and creditor confidence and to sustain
future development of the business. The Company's objectives when
managing capital are to safeguard the Company's ability to continue
as a going concern in order to provide returns for shareholders and
benefits for stakeholders and to maintain an optimal capital
structure to reduce the cost of capital. The Company has a record
of managing the timing and extent of discretionary expenditure in
the business.
In order to maintain or adjust the capital structure the Company
may issue new shares.
30 Events after the reporting date
The only material post-balance sheet event was the award of a
contract by Astellas Pharma Inc. on 31 July 2020.
31 Related party transactions
Remuneration of key management personnel
The remuneration of the Directors, who are the key management
personnel of the Company, is set out on page 17.
32 Controlling party
The Company does not currently have an ultimate controlling
party and did not have one in this reporting year or the preceding
reporting year.
33 Cash generated from operations
2020 2019
GBP GBP
Loss for the year after tax (64,424) (104,040)
Adjustments for:
Taxation credited (69,282) (96,709)
Finance costs - -
Investment income (679) (470)
Amortisation and impairment of intangible assets 422 13
Depreciation and impairment of tangible fixed assets 9,083 8,381
Equity settled share-based payment expense 8,212 21,928
Movements in working capital:
Increase in debtors (128,484) (13,515)
Decrease in creditors 38,696 25,358
Increase/(decrease) in deferred revenue 6,448 (67,190)
----------- ----------
Cash absorbed by operations (200,008) (226,244)
=========== ==========
Enquiries:
Physiomics plc
Dr Jim Millen, CEO
+44 (0)1865 784 980
Hybridan LLP (Broker)
Claire Louise Noyce
+44 (0) 203 764 2341
Strand Hanson Ltd (NOMAD)
Richard Tulloch & James Dance
+44 (0)20 7409 3494
About Physiomics
Physiomics plc (AIM: PYC) is an oncology consultancy using
mathematical models to support the development of cancer treatment
regimens and personalised medicine solutions. The Company's Virtual
Tumour(TM) technology uses computer modelling to predict the
effects of cancer drugs and treatments to improve the success rate
of drug discovery and development projects while reducing time and
cost. The predictive capability of Physiomics' technologies have
been confirmed by over 70 projects, involving over 30 targets and
60 drugs, and has worked with clients such as Merck KGaA, Merck
& Co, Bayer and Lilly.
Based in Oxford UK, the Company works with clients worldwide to
support their pre-clinical and clinical oncology development
programs. Its team of scientists and computer modelling experts
provide bespoke solutions encompassing data, analytics and
insight.
Physiomics senior management has academic and commercial
expertise, including over 120 years collectively of working in
oncology and/or computational biology and over 120 publications in
peer reviewed journals that have attracted thousands of
citations.
For more information please visit:
www.physiomics.co.uk
www.twitter.com/Physiomics
www.linkedin.com/company/physiomics-plc/
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