TIDMPYC

RNS Number : 6022Q

Physiomics PLC

01 March 2021

1 March 2021

Physiomics Plc

("Physiomics") or (the "Company")

Interim Results Statement

for the six-month period ended 31 December 2020

Physiomics plc (AIM: PYC), the oncology consultancy using mathematical models and its Virtual Tumour(TM) technology to support the development of cancer treatment regimens and personalised medicine solutions, today announces its financial results for the six months ended 31 December 2020.

Summary financial results

   --        Revenue of GBP363k (six months ended 31 December 2019: GBP343k) 
   --        Total income of GBP386k* (six months ended 31 December 2019: GBP343k*) 
   --        Operating loss of GBP132k (six months ended 31 December 2019: GBP118k) 
   --        Cash and cash equivalents of GBP1.15m at 31 December 2020 (31 December 2019: GBP434k) 
   --        Shareholders' funds of GBP1.29m at 31 December 2020 (31 December 2019: GBP532k) 

* Total income for the six months ended 31 December 2020 includes other operating income, being grant income, of GBP23k. No grant income is included in the six months ended 31 December 2019.

Total income in the first half was 13% ahead of the six-month comparable prior period ended 31 December 2019. Operating losses of GBP132k were just GBP14k greater than those of the comparable prior period despite a significant increase in marketing activities. The Company finished the half with a strong balance sheet showing shareholder funds of GBP1.29m at 31 December 2020 (up from GBP532k at 31 December 2019).

Careful management of cash helped the Company to achieve a net cash inflow of GBP101k during the period, with the Company having cash and cash equivalents of GBP1.15m at 31 December 2020 (30 June 2019: GBP434k). The second half revenues for the last two financial years have significantly exceeded those of the first half and the Board expects this trend to continue in the current financial year .

Operational highlights

Key events in the period include:

-- Signing of a further contract with Bicycle Therapeutics; the eighth signed with this high-profile UK biotech company, spanning four different assets within its pipeline

   --        Agreement with Astellas Pharma Inc. to model an undisclosed immune-oncology target 

-- UK HRA and ethics committee approval of PARTNER study to be conducted at Portsmouth Hospitals University NHS Trust to generate data to further evaluate the Company's personalised dosing software tool

-- Partnership with Tabula Rasa Healthcare(R) to implement the Company's personalised dosing tool for cancer treatments in the established DoseMeRx(R) software platform

-- Contracts awarded by Merck KGaA with an aggregate value of GBP270,000 expected to be completed during the first six to eight months of calendar 2021 with further contracts expected in the second half of calendar 2021

Key event after the period end:

-- Risk-sharing agreement with ValiRx renewed and extended to include indications beyond prostate cancer (endometriosis and coronavirus) following the release by ValiRx of clinical data for VAL201 in November 2020

Chairman and CEO's b usiness strategy update

The Directors believe that the events noted above provide evidence of material progress in developing both the Company's core modelling and simulation business, as well as its more recent personalised oncology initiatives. This progress has been underpinned by selective investments to build our capabilities in these two areas which were made possible by the successful, oversubscribed placing announced on 27 May 2020. Further commentary on our key business areas is provided below.

Consulting business based on modelling & simulation using Virtual Tumour(TM) and other tools

The Company continues to maintain strong relationships with existing repeat-clients, including CellCentric and Bicycle Therapeutics, as well as its long-term client Merck KGaA. The Company signed eleven follow-on agreements with existing clients in calendar year 2020 in addition to securing a significant new client in Astellas Pharma Inc (TSE:4503).

Investment in databases for lead identification, direct telephone marketing, active social media management and selective use of business development consultants led to substantive new business meetings with 27 companies during calendar 2020. One such meeting led to the signing of an agreement with Astellas, however, a number of other proposals requested at these meetings remain extant and, it is hoped, will generate new contracts over the course of the current half year ending 30 June 2021. Particularly pleasing is an increasing number of potential clients who approach us as a result of personal recommendations or through our website and social media activity. As the typical lead time from first contact with a new client to an eventual contract for work can be six months or more, the Directors believe that the pipeline of high-quality leads built up over the course of 2020 will generate further business going forwards.

Personalised oncology

The Company has successfully competed for and won two Innovate UK grants and one NIHR grant over a five-year period, and these funds have and are being used to develop a personalised oncology software tool. The Directors view the agreement with Tabula Rasa Healthcare(R) to implement the Company's personalised dosing tool on its established DoseMeRx(R) software platform to be a significant validation of the work conducted to datein this area. This initial implementation is expected to be complete by the end of this half year and if successful, the next step would be to enter into a revenue generating contract. The implementation of decision support software and, where required, its regulatory approval is complex and the support of a major global player in this market could prove critical to the technology's implementation in the USA (where there is an established and growing market for such tools) and beyond. In parallel with this initiative, the Directors are excited that a UK-based observational clinical trial (the PARTNER study) has also now been approved and, it is hoped, will start in the first half of this calendar year subject to constraints arising from the COVID pandemic. Data from this trial will be used to further validate and develop the tool.

Other areas

In addition to the areas noted above, the Company is actively considering how it could use its extensive capabilities in modelling, simulation, data analysis and AI techniques to develop further innovative assets in collaboration with other partners. Further information on this initiative will be provided as progress is made.

Outlook

The Directors believe the Company is in a good position to meet market expectations for this year as it continues to make strong progress in each of its key business areas.

Enquiries:

Physiomics plc

Dr Jim Millen, CEO

+44 (0)1865 784 980

Strand Hanson Ltd (NOMAD)

James Dance & James Bellman

+44 (0)20 7409 3494

Hybridan LLP (Broker)

Claire Louise Noyce

+44 (0)20 3764 2341

Notes to Editor

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 80 projects, involving over 40 targets and 70 drugs, and has worked with clients such as Merck KGaA, Astellas, Merck & Co and Bicycle Therapeutics.

 
 Physiomics Plc 
 
 Unaudited Statement of Comprehensive Income for the half year ended 31 December 2020 
 
 
                                                                   Unaudited      Unaudited            Audited 
                                                                Half year to   Half year to         Year ended 
                                                                   31-Dec-20      31-Dec-19          30-Jun-20 
                                                                     GBP'000        GBP'000            GBP'000 
 
 Revenue                                                                 363            343                799 
 
 Other operating income                                                   23              -                 43 
 
 Total income                                                            386            343                842 
 
 Operating expenses                                                    (518)          (461)              (975) 
 
 Operating loss and loss before taxation                               (132)          (118)              (133) 
 
 
 UK corporation tax                                                       59             36                 69 
 
 Loss for the period attributable to equity shareholders                (73)           (82)               (64) 
                                                               -------------  -------------      ------------- 
 
 
 
 
 Loss per share (pence) 
 Basic and diluted         (0.08)   p   (0.11)   p   (0.09)   p 
 

Physiomics Plc

 
 
 Unaudited Statement of financial position as at 31 December 2020 
 
 
                                           Unaudited      Unaudited        Audited 
                                               As at          As at          As at 
                                           31-Dec-20      31-Dec-19      30-Jun-20 
                                             GBP'000        GBP'000        GBP'000 
 
 
 Non-current assets 
 Intangible assets                                 4              4              4 
 Property, plant and equipment                    19             14             11 
                                                  23             18             15 
 
 Current assets 
 Trade and other receivables                     236            152            383 
 Cash and cash equivalents                     1,149            434          1,048 
                                               1,385            586          1,431 
 
 Total assets                                  1,408            604          1,446 
                                          ----------  -------------  ------------- 
 
 Current liabilities 
 Trade and other payables                      (119)           (72)          (124) 
 Deferred revenue                                (3)              -            (7) 
                                          ----------  -------------  ------------- 
 Total liabilities                             (122)           (72)          (131) 
                                          ----------  -------------  ------------- 
 
 Net assets                                    1,286            532          1,315 
                                          ----------  -------------  ------------- 
 
 Capital and reserves 
 Share capital                                 1,282          1,181          1,275 
 Capital reserves                              6,134          5,426          6,097 
 Profit & loss account                       (6,130)        (6,075)        (6,057) 
 Equity shareholders' funds                    1,286            532          1,315 
                                          ----------  -------------  ------------- 
 
 
 
 
 Physiomics Plc 
 
 Unaudited Statement of changes in equity for the half year ended 31 December 2020 
 
 
                                                  Share    Share-based                                 Total 
                                        Share   premium   compensation              Retained   shareholders' 
                                      capital   account        reserve              earnings           funds 
                                      GBP'000   GBP'000        GBP'000               GBP'000         GBP'000 
 
 At 1 July 2019                         1,181     5,228            192               (5,993)             608 
 
 Transfer to other reserves                 -         -              6                     -               6 
 
 Loss for the period                        -         -              -                  (82)            (82) 
 
 At 31 December 2019                    1,181     5,228            198               (6,075)             532 
 
 Transfer to other reserves                94       669              2                     -             765 
 
 Profit for the period                      -         -              -                    18              18 
 
 At 30 June 2020                        1,275     5,897            200               (6,057)           1,315 
 
 Transfer to other reserves                 7        37              -                     -              44 
 
 Loss for the period                        -         -              -                  (73)            (73) 
 
 At 31 December 2020                    1,282     5,934            200               (6,130)           1,286 
 
 
 
 
 Physiomics Plc 
 
 Unaudited Cash Flow Statement for the half year ended 31 December 2020 
 
 
                                                                 Unaudited      Unaudited      Audited 
                                                              Half year to   Half year to   Year ended 
                                                                 31-Dec-20      31-Dec-19    30-Jun-20 
                                                                   GBP'000        GBP'000      GBP'000 
 
 Cash flows from operating activities: 
 
 Operating loss                                                      (132)          (118)        (133) 
 Amortisation and depreciation                                           6              5            9 
 Share-based compensation                                                0              7            8 
 (Increase) decrease in receivables                                    205             57        (129) 
 Increase / (decrease) in payables                                     (5)           (12)           39 
 Increase / (decrease) in deferred revenue                             (4)            (1)            6 
 
 Net cash generated from / (used in) operations                         70           (62)        (200) 
 
 UK corporation tax received                                             -             95           84 
 
 Net cash generated from / (used in) operating activities               70             33        (116) 
 
 Cash flows from investing activities: 
 
 Purchase of non-current assets, net of grants received               (13)            (4)          (4) 
 
 Net cash used in investing activities                                (13)            (4)          (4) 
                                                             -------------  -------------  ----------- 
 
 Cash flows from financing activities: 
 
 Issue of ordinary share capital (net of costs)                         44              -          763 
 
 Net cash generated from financing activities                           44              -          763 
                                                             -------------  -------------  ----------- 
 
 Net (decrease) / increase in cash and cash equivalents                101             29          643 
 
 Cash and cash equivalents at beginning of period                    1,048            405          405 
 
 Cash and cash equivalents at end of period                          1,149            434        1,048 
                                                             -------------  -------------  ----------- 
 
 

Physiomics Plc

Notes to the Interim Financial Statements

   1.   General information 

Physiomics Plc is a public limited company ("the Company") incorporated in England & Wales (registration number 4225086). The Company is domiciled in the United Kingdom and its registered address is The Magdalen Centre, Robert Robinson Avenue, The Oxford Science Park, Oxford, OX4 4GA. The Company's ordinary shares are traded on the AIM Market of the London Stock Exchange ("AIM"). Copies of the interim report are available from the Company's website, www.physiomics.co.uk. Further copies of the Interim Report and Annual Report and Accounts may be obtained from the address above.

The Company's principal activity is the provision of services to pharmaceutical companies in the area of outsourced systems and computational biology.

   2.   Basis of preparation 

The interim financial statements of the Company for the six months ended 31 December 2020, which are unaudited, have been prepared in accordance with the accounting policies set out in the annual report and accounts for the year ended 30 June 2020, which were prepared under International Financial Reporting Standards ("IFRS").

The financial information contained in the interim report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the full preceding year is based on the statutory accounts for the year ended 30 June 2020. Those accounts, upon which the auditors, Shipleys LLP, issued a report which was unqualified but contained an emphasis of matter paragraph, have been delivered to the Registrar of Companies.

As permitted, this interim report has been prepared in accordance with the AIM Rules for Companies and not in accordance with IAS 34 "Interim Financial Reporting" therefore it is not fully compliant with IFRS.

The interim financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (GBP'000) except when otherwise indicated.

   3.   Loss per share 

Basic loss per share is 0.08p (H1 2019: loss per share 0.11p). The basic loss per ordinary share is calculated by dividing the loss of GBP73,443 (H1 2019: loss GBP82,148) by 96,923,365 (H1 2019: 71,910,394), the weighted average number of shares in issue during the period.

The loss attributable to equity holders (holders of ordinary shares) of the Company for 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.

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