TIDMSAR
RNS Number : 0312P
Sareum Holdings PLC
09 October 2023
Sareum Holdings PLC
("Sareum" or the "Company")
Final Results for the Year Ended 30 June 2023
Cambridge, UK, 9 October 2023 - Sareum Holdings plc (AIM: SAR),
a biotechnology company developing next generation kinase
inhibitors for autoimmune disease and cancer, today announces its
audited financial results for the year ended 30 June 2023.
Additionally, Sareum announces that the Annual Report detailing
these financial results will be made available and posted in the
coming weeks.
Sareum also provides a broader update on operational activities
and pipeline progress.
OPERATIONAL HIGHLIGHTS - INCLUDING POST-PERIOD UPDATES
SDC-1801 (autoimmune disease)
-- SDC-1801 is a TYK2/JAK1 inhibitor being developed as a
potential new therapeutic for a range of autoimmune diseases with
an initial focus on psoriasis, an autoimmune condition affecting
the skin.
-- A Phase 1a clinical trial evaluating SDC-1801 in healthy
subjects was initiated in May 2023, and is progressing well at a
specialist clinical unit in Melbourne, Australia.
-- In September, after the period end, Sareum commenced dosing
in the multiple ascending dose (MAD) escalation phase of the Phase
1a trial. This followed approval by the safety review committee
granted upon review of preliminary data generated from the initial
three cohorts in the single ascending dose (SAD) part of the
study.
-- Full safety data from the Phase 1a trial are expected to be
available during the first half of 2024 and, provided satisfactory
results are obtained and subject to financing and regulatory and
recruitment preparations, the Company plans to initiate a Phase 1b
clinical study, aiming to recruit up to 24 psoriasis patients. This
study is expected to be completed before the end of 2024.
-- First patent relating to SDC-1801 was granted by the China
National Intellectual Property Administration, safeguarding the use
of SDC-1801 for medical applications treating inflammatory or
immune disorders.
SDC-1802 (cancer immunotherapy)
-- Sareum continues to work on the translational studies needed
to support its cancer immunotherapy candidate, SDC-1802, defining
the optimal cancer application prior to completing toxicology and
manufacturing studies.
-- New patent granted by the United States Patent and Trademark
Office (USPTO) covering the treatment of autoimmune diseases with
SDC-1802 and several analogues and extending protection for this
compound beyond immuno-oncology.
SRA737 (cancer)
-- Sierra Oncology, Inc, a subsidiary of GSK plc, completed the
return of the Clinical Study Reports and other associated documents
and data related to SRA737 to Sareum's co-development partner, the
CRT Pioneer Fund LP ("CPF").
-- CPF is taking the lead in evaluating potential further
development opportunities for SRA737 and further updates will be
provided as soon as possible.
FINANCIAL HIGHLIGHTS
-- The loss for the year to 30 June 2023 was GBP3.2 million
after tax, (2022: GBP2.2 million), in line with market expectations
and reflecting the increased costs associated with setting up and
commencing clinical studies with SDC-1801.
-- Sareum had a cash position of GBP1.0 million as at 30 June
2023 (cash of GBP 2.9 million as at 31 December 2022 and GBP4.3
million as at 30 June 2022).
-- As announced on 3 August 2023, after the period end, Sareum
agreed terms on an Equity Prepayment Facility (the "Facility") of
up to GBP5.0 million with RiverFort Global Opportunities PCC Ltd
("RiverFort"). The Company received an initial deposit of GBP2.0
million, net of associated costs, on 4 August 2023.
-- The Company intends to use the Facility, if fully drawn,
together with the receipt of anticipated tax incentives to the
amount of GBP1.6 million (of which GBP0.4m was received in
Australia post period end), to complete the Phase 1a/b clinical
development of the Company's lead candidate SDC-1801, which is
expected to be a primary catalyst for driving shareholder value,
and for general working capital to Q4 2024. With the current and
anticipated financing mechanisms in place, the Company is
positioned to ensure the completion of the Phase 1a study and to
support subsequent developments.
Dr Tim Mitchell, CEO of Sareum, commented:
"We are increasingly optimistic about the potential of TYK2/JAK1
inhibitors to address autoimmune disease and we remain fully
focused on progressing our lead programme, SDC-1801, through the
ongoing Phase 1 study underway in Australia.
"The funds raised as part of the RiverFort facility provide a
clear runway allowing us to focus on advancing this promising asset
through Phase 1 studies and we look forward to having full safety
data in the first half of 2024, potentially allowing us to move
towards an important Phase 1b study in psoriasis patients which
will focus more on efficacy .
"With our secured financing and anticipated resources, we
believe we're well positioned to complete the ongoing Phase 1a and
subsequently advance into the Phase 1b study.
"This progress, alongside growing scientific and commercial
validation in the TYK2/JAK1 space, supports our continued
confidence in this asset.
"We're also optimistic about the opportunity for SDC-1802 in
immuno-oncology and continue to believe that SRA737 has great
potential for the treatment of cancer."
For further information, please contact:
Sareum Holdings plc
Tim Mitchell, CEO 01223 497700
Lauren Williams, Head of Investor Relations ir@sareum.co.uk
Strand Hanson Limited (Nominated Adviser)
James Dance / James Bellman 020 7409 3494
Peel Hunt LLP (Joint Corporate Broker)
James Steel / Patrick Birkholm 020 7418 8900
Hybridan LLP (Joint Corporate Broker)
Claire Noyce
020 3764 2341
ICR Consilium (Financial PR)
Jessica Hodgson / Davide Salvi / Stella
Lempidaki 020 3709 5700
About Sareum
Sareum Holdings (AIM:SAR) is a clinical-stage biotechnology
company developing next generation kinase inhibitors for autoimmune
disease and cancer.
The Company is focused on developing next generation small
molecules which modify the activity of the JAK kinase family and
have best-in-class potential. Its lead candidate, SDC-1801,
simultaneously inhibits TYK2 and JAK1. SDC-1801 is a potential
treatment for a range of autoimmune diseases and has entered Phase
1a/b clinical development with an initial focus on psoriasis.
Sareum has an economic interest in SRA737, a clinical-stage Chk1
inhibitor which it originally developed in collaboration with
several Cancer Research UK-related organisations. SRA737 has shown
promising safety and efficacy in two Phase 1/2 clinical trials.
Sareum is also developing SDC-1802, a TYK2/JAK1 inhibitor with a
potential application for cancer immunotherapy.
Sareum Holdings plc is based in Cambridge, UK, and is listed on
the AIM market of the London Stock Exchange, trading under the
ticker SAR. For further information, please visit the Company's
website at www.sareum.com
CHAIRMAN'S STATEMENT
Sareum is making good progress with its lead programme,
SDC-1801, with a Phase 1a trial now underway in Australia.
The management team is convinced of the potential benefits that
dual inhibition of both TYK2 and JAK1 can offer to patients with
autoimmune diseases in terms of superior efficacy in comparison to
other small molecule approaches.
For the duration of this financial year, the team has been
focused on advancing the clinical development of SDC-1801. Despite
an initial setback with respect to Sareum's application to the UK's
MHRA, management rapidly pivoted and adapted its strategy,
fulfilling the necessary steps to enable the Phase 1a trial to be
conducted in Australia.
Australia offers state-of-the-art research facilities, an
efficient approval process and generous tax incentives for
companies undertaking research and development, making it an
attractive location for conducting clinical trials. The Phase 1a
trial of SDC-1801 started in May 2023 and is progressing well.
Following a review of the safety and pharmacokinetics data from the
first three cohorts in the SAD part of the study, MAD studies were
initiated in September after the period end. Sareum is on track to
receive full safety data from the Phase 1a trial during the first
half of 2024. Subject to satisfactory safety data, as well as
financing, regulatory and recruitment considerations, Sareum aims
to move SDC-1801 into the Phase 1b part of the trial in psoriasis
patients as soon as possible thereafter.
Our second dual TYK2/JAK1 inhibitor, SDC-1802, holds significant
potential in cancer and autoimmune disease. Translational studies
continue, in order to define the optimal application prior to
completing the necessary toxicology and manufacturing preparatory
work. We have been encouraged by the award of a patent, in June
2023, by the United States Patent and Trademark Office (USPTO),
which extends the potential scope of this compound beyond
immuno-oncology.
We continue to be optimistic about the potential for SRA737,
which has demonstrated promising clinical and preclinical efficacy,
particularly in combination settings, in earlier studies conducted
by Sierra Oncology. CPF is taking the lead in evaluating the
opportunity and next steps for this asset, and we await further
developments.
For now, the Company is focused on the encouraging clinical
progress of our lead programme, SDC-1801. The financing agreement
with RiverFort, announced in August 2023, provides us with a runway
to complete the Phase 1 element of the trial and we are excited to
see this move forward.
COMPANY STRATEGY
Sareum is a clinical-stage small molecule drug development
company which is focused on advancing inhibitors of the JAK kinase
family into clinical development for autoimmune disease and cancer.
It is led by a highly experienced team with expertise in kinase
inhibition and decades of experience in R&D and public company
management.
Sareum's pipeline is focused on TYK2/JAK1 inhibitors, which are
involved in signalling pathways that are deregulated in multiple
autoimmune diseases. Inhibition of TYK2 and JAK1 has the potential
to yield a superior efficacy compared with agents that block just
one of these two kinases and with a superior safety profile than
"first generation" JAK family inhibitors that also modulate JAK2
and JAK3.
Our approach is to discover and develop programmes to late
preclinical or early clinical stages before licensing or
partnering.
The Company maintains a lean cost base with a small, experienced
and specialised team and using trusted third-party providers, to
maximise its return on investment.
PROGRAMME UPDATES
SDC-1801
SDC-1801 is a TYK2/JAK1 inhibitor being developed as a potential
new therapeutic for a range of autoimmune diseases with an initial
focus on psoriasis, an autoimmune condition affecting the skin.
TYK2/JAK1 inhibition has demonstrated benefits in restoring a
healthy immune system and has strong clinical validation in
psoriasis and psoriatic arthritis.
Psoriasis is an autoimmune dermatological condition affecting
more than 125 million adults worldwide, with a market size for
potential treatments estimated to be worth US$27.0 billion. Sareum
believes that TYK2/JAK1 inhibition offers the potential for
increased efficacy in psoriasis, compared with existing approved
therapies.
Scientific and commercial interest in the application of
TYK2/JAK1 inhibition has been building recently. This momentum was
underscored by the approval in September 2022 of Sotyktu(TM)
(deucravacitinib), from Bristol Myers Squibb, a first-in-class,
oral, selective, allosteric TYK2 inhibitor for the treatment of
adults with moderate-to-severe plaque psoriasis.
SDC-1801 is undergoing a Phase 1a clinical trial designed to
investigate the safety, tolerability, pharmacokinetics and
pharmacodynamics of an oral formulation of SDC-1801 in healthy
subjects (trial ID ACTRN12623000416695p). This is a randomised,
placebo-controlled trial, with single and multiple ascending oral
dose studies, and a food effect study, which is taking place at a
clinical unit in Melbourne, Australia.
The single ascending dose (SAD) part of the trial was initiated
in May and, in September, Sareum confirmed after the period end
that it had commenced dosing the first subjects in the multiple
ascending dose (MAD) part of the trial. Dosing in the MAD part of
the study followed approval by the safety review committee based on
preliminary data generated from the initial three cohorts in the
SAD part of the study. These were deemed satisfactory for the MAD
part of the study to commence, alongside continued dose escalation
in the SAD part of the study.
A food effect study, which will examine how the pharmacokinetic
profile of SDC-1801 changes when capsules are dosed with food, or
following a fasting period, is planned to commence in Q423 and is
expected to report in early 2024.
Provided satisfactory safety data are obtained from the Phase 1a
study and s ubject to financing, regulatory and recruitment
considerations, Sareum aims to move SDC-1801 into the Phase 1b part
of the trial in psoriasis patients as soon as possible.
SDC-1802
SDC-1802 is a TYK2/JAK1 inhibitor being developed for cancer and
cancer immunotherapy applications.
Sareum continues to work on the translational studies needed to
define the optimal cancer application prior to completing
toxicology and manufacturing studies.
In June 2023, a patent was granted by the United States Patent
and Trademark Office (USPTO) covering the treatment of autoimmune
diseases with SDC-1802 and several analogues and extending
protection for this compound beyond immuno-oncology.
This strengthens the intellectual property protection around
this molecule: in April 2022, the Company was granted a patent
protecting the SDC-1802 molecule and pharmaceutical preparations
thereof as a therapeutic to treat T-cell acute lymphoblastic
leukaemia (T-ALL - a cancer of a particular type of white blood
cell called a T lymphocyte) and other cancers that are dependent on
TYK2 kinase for survival.
SRA737
SRA737 is a clinical-stage oral, selective Chk1 inhibitor that
targets cancer cell replication and DNA damage repair
mechanisms.
The asset was originally developed by Sareum in collaboration
with several Cancer Research UK-related organisations, including
CPF, with whom the Company entered a co-development agreement in
2013. Under the terms of the agreement, Sareum is entitled to a
27.5% share of any commercialisation revenues.
As announced in March 2023, Sierra Oncology, Inc, now a
subsidiary of GSK plc, has completed the return of the Clinical
Study Reports and other associated documents and data related to
SRA737 to Sareum's co-development partner, the CPF.
As the major partner, CPF is taking the lead in evaluating
potential further development opportunities for SRA737 and further
updates will be provided as and when appropriate.
Sierra reported positive preliminary efficacy and safety data in
two clinical trials evaluating it as a monotherapy and in
combination with chemotherapy in 2019, and preclinical data have
been reported that support the potential for SRA737 in combination
against hard-to-treat cancers.
We continue to believe that, based on preclinical and early
clinical data, SRA737 holds strong promise for the treatment of
cancer, particularly in combination settings and are confident in
the potential of this molecule.
FINANCIAL REVIEW (INCLUDING POST PERIOD EVENTS)
The loss for the year to 30 June 2023 was GBP3.2 million after
tax (2022: GBP2.2 million), in line with market expectations and
reflecting the increased costs associated with setting up and
commencing clinical studies with SDC-1801.
Sareum had a cash position of GBP1.0 million as at 30 June 2023
(cash of GBP 2.9 million as at 31 December 2022 and GBP4.3 million
as at 30 June 2022).
In August 2023, after the period end, Sareum agreed terms on an
Equity Prepayment Facility of up to GBP5.0 million with RiverFort.
The Company received an initial deposit of GBP2.0 million, net of
associated costs, on 4 August 2023.
The Company intends to use the Facility, if fully drawn,
together with the receipt of anticipated tax credits to the amount
of GBP1.6 million (of which GBP0.4m was received from the
Australian government post period end), to complete the Phase 1a/b
clinical development of the Company's lead candidate SDC-1801,
which is expected to be a primary catalyst for driving shareholder
value, and for general working capital to Q4 2024.
OUTLOOK
Sareum is focused on progressing the Phase 1 trial of its lead
clinical programme, SDC-1801. This trial moved into the MAD part of
the Phase 1a trial in August 2023 and dose escalation continues in
the SAD.
Initial safety data from the Phase 1a trial are expected to be
available in 1H 2024. Subject to satisfactory safety, additional
funding and relevant regulatory and recruitment preparations, we
plan to commence a Phase 1b trial of SDC-1801 in psoriasis patients
shortly thereafter, with a readout from this part of the study
expected by the end of 2024.
The continued good progress of the Phase 1a trial and our
supporting preclinical work, combined with growing commercial and
scientific momentum building around the TYK2/JAK1 class, underpins
our continued confidence around the commercial potential for this
molecule.
We continue to advance translational studies for SDC-1802, which
we believe has attractive potential in cancer immunotherapy.
The Board and management of Sareum continue to apply a rigorous
approach to capital allocation to the development of our assets,
particularly in the current challenging economic environment, and
maintain a clear focus on bringing these medicines to patients as
efficiently as possible, while maximising value for
shareholders.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 JUNE 2023
Note 2023 2022
GBP'000 GBP'000
CONTINUING OPERATIONS
Revenue - -
Administrative expenses (4,048) (2,577)
Share of loss of associates (18) (3)
-------------- --------------
OPERATING LOSS (4,066) (2,580)
Finance income 4 41 1
LOSS BEFORE TAXATION 5 (4,025) (2,579)
Taxation 6 833 407
LOSS FOR THE YEAR (3,192) (2,172)
TOTAL COMPREHENSIVE EXPENSE FOR THE
YEAR (3,192) (2,172)
Loss attributable to owners of the
parent (3,192) (2,172)
======== ========
Total comprehensive income attributable
to owners of the parent (3,192) (2,172)
Basic and diluted loss per share expressed
in pence per share 7 (4.7) (3.2)
The accompanying notes form part of these financial
statements.
CONSOLIDATED BALANCE SHEET
30 JUNE 2023
Note 2023 2022
GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 1 2
Investment in associate 9 46 23
47 25
CURRENT ASSETS
Trade and other receivables 10 979 500
Cash and cash equivalents 11 994 4,261
1,973 4,761
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 12 (867) (455)
NET CURRENT ASSETS 1,106 4,306
NET ASSETS 1,153 4,331
SHAREHOLDERS' EQUITY
Called up share capital 15 851 851
Share premium 16 20,925 20,925
Share-based compensation
reserve 16 325 325
Foreign exchange reserve 16 14 -
Retained earnings 16 (20,962) (17,770)
TOTAL EQUITY 1,153 4,331
The accompanying notes form part of these financial
statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 JUNE 2023
Share-based
Called up compensation
share capital Share premium reserve
GBP'000 GBP'000 GBP'000
Balance at 1 July 2021 833 17,235 362
Issue of share capital 18 3,690 -
Transfer for options exercised / expired - - -
Total comprehensive income - - (37)
Balance at 30 June 2022 851 20,925 325
Issue of share capital - - -
Total comprehensive income - - -
Transfer for options exercised / expired - - -
Balance at 30 June 2023 851 20,925 325
Foreign exchange Retained
reserve earnings Total equity
GBP'000 GBP'000 GBP'000
Balance at 1 July 2021 - (15,635) 2,795
Issue of share capital - - 3,708
Transfer for options exercised / expired - 37 -
Total comprehensive income - (2,172) (2,172)
Balance at 30 June 2022 - (17,770) 4,331
Issue of share capital - - -
Transfer for options exercised / expired - - -
Arising on consolidation 14 - 14
Total comprehensive income - (3,192) (3,192)
Balance at 30 June 2023 14 (20,962) 1,153
The accompanying notes form part of these financial
statements.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEARED 30 JUNE 2023
Note 2023 2022
GBP'000 GBP'000
Cash flows from operating activities
Cash used in operations 19 (3,676) (2,349)
Tax received 409 218
Net cash outflow from operating activities (3,267) (2,131)
Cash flows from investing activities
Purchase of tangible fixed assets - (3)
Investment in associate (41) -
Interest received 41 1
Net cash inflow from investing activities - (2)
Cash flows from financing activities
Share issue - 3,708
Net cash inflow from financing activities - 3,708
------------- -------------
(Decrease)/increase in cash and cash
equivalents (3,267) 1,575
Cash and cash equivalents at beginning
of year 4,261 2,686
------------ ------------
Cash and cash equivalents at end
of year 994 4,261
======= =======
The accompanying notes form part of these financial
statements.
1. BASIS OF PREPARATION
The financial statements of Sareum Holdings plc ("the Company")
have been prepared in accordance with UK-adopted international
accounting standards, and in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006, with IFRIC interpretations. On 1 January 2022
the UK-adopted IAS and EU-adopted IFRS were identical. Since this
date timing differences in endorsement have arisen, however no
amendments would be required to these financial statements if they
were prepared in accordance with EU-adopted IFRS as at 30 June
2023.
The financial statements have been prepared under the historical
cost convention.
Going concern
The Group made losses after tax of GBP3.2 million (2022: GBP2.2
million), as they continued to progress their research and
development activities. These activities, and the related
expenditure, are in line with the budgets previously set and are
funded by regular cash investments.
The Directors consider that the cash held at the year-end,
together with that subsequently received and projected to be
received, will be sufficient for the Group to meet its forecast
expenditure for at least one year from the date of signing the
financial statements. If there is a shortfall the Directors will
implement cost savings to ensure that the cash resources last for
this period of time.
For these reasons the financial statements have been prepared on
a going concern basis.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries and an associate, together, "the Group") made up
to 30 June each year. Control is achieved where the Company has the
power to govern the financial and operating policies of another
entity or business, so as to obtain benefits from its activities.
The consolidated financial statements present the results of the
Company and its subsidiary as if they formed a single entity.
Inter-company transactions and balances between group companies are
eliminated on consolidation.
2. ACCOUNTING POLICIES
The principal accounting policies applied are set out below.
Property, plant and equipment
Depreciation is provided on a straight-line basis over three
years in order to write off each asset over its estimated useful
life.
Financial instruments
Financial instruments are classified and accounted for,
according to the substance of the contractual arrangement, as
either financial assets, financial liabilities or equity
instruments. An equity instrument is any contract that evidences a
residual interest in the assets of the Company after deducting all
of its liabilities.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand
deposits and other short term highly liquid investments that are
readily convertible to a known amount of cash and are subject to
insignificant risk of change in value.
Pension contributions
The Group does not operate a pension scheme for the benefit of
its employees but instead makes contributions to their personal
pension plans. The contributions due for the period are charged to
the profit and loss account.
Employee share schemes
The Group has in place a share option scheme for employees,
which allows them to acquire shares in the Company. Equity settled
share-based payments are measured at fair value at the date of
grant. The fair value of options granted is recognised as an
expense spread over the estimated vesting period of the options
granted. Fair value is measured using the Black-Scholes model,
taking into account the terms and conditions upon which the options
were granted.
Research and development
Expenditure on research and development is written off in the
year in which it is incurred.
Research expenditure is written off in the period in which it is
incurred. Development expenditure incurred is capitalised as an
intangible asset only when all of the following criteria are
met:
- It is technically feasible to complete the intangible asset so
that it will be available for use or sale;
- There is the intention to complete the intangible asset and use or sell it;
- There is the ability to use or sell the intangible asset;
- The use or sale of the intangible asset will generate probable future economic benefits;
- There are adequate technical, financial and other resources
available to complete the development and to use or sell the
intangible asset; and
- The expenditure attributable to the intangible asset during
its development can be measured reliably.
Expenditure that does not meet the above criteria is expensed as
incurred.
Taxation
Current taxes are based on the results shown in the financial
statements and are calculated according to local tax rules, using
tax rates enacted or substantially enacted by the balance sheet
date.
Deferred tax is recognised in respect of all timing differences
that have originated but not reversed at the balance sheet date
where transactions or events have occurred at that date that will
result in an obligation to pay more, or a right to pay less or to
receive more tax, with the following exception:
Deferred tax is measured on an undiscounted basis at the tax
rates that are expected to apply in the periods in which timing
differences reverse, based on the tax rates and laws enacted or
substantively enacted at the balance sheet date. Deferred tax
assets are recognised only to the extent that the Directors
consider that it is more likely than not that there will be
suitable taxable profits from which the future reversal of the
underlying timing differences can be deducted.
Revenue recognition
Revenue is measured as the fair value of the consideration
received or receivable in the normal course of business, net of
discounts, VAT and other sales related taxes and is recognised to
the extent that it is probable that the economic benefits
associated with the transaction will flow to the Group. Revenues
from licensing agreements are recognised in line with the
performance obligations being met, as outlined in the terms of the
agreement. Grant income is recognised as earned based on
contractual conditions, generally as expenses are incurred. Such
income is recognised as Other Operating Income.
Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates. The
estimates and assumptions that have the most significant effects on
the carrying amounts of the assets and liabilities in the financial
information are considered to be research and development costs and
equity settled share-based payments.
Investment in associates
An associate is an entity over which the Company has significant
influence. Significant influence is the power to participate in the
financial and operating policy decisions of the Investee but is not
control or joint control over those policies. Investments in
associates are accounted for using the equity method, whereby the
investment is initially recognised at cost and adjusted thereafter
for the post-acquisition change in the associate's net assets with
recognition in the profit and loss of the share of the associate's
profit or loss.
Impairment of assets
At the date of the statement of financial position, the Group
reviews the carrying amounts of its non-current assets to determine
whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any).
Recoverable amount is the higher of fair value less cost to sell
and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted. If the
recoverable amount of an asset is estimated to be less than its
carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. An impairment loss is recognised as an expense
immediately, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a
revaluation decrease.
New or revised accounting standards
Certain new accounting standards and interpretations have been
published that are not mandatory for 30 June 2023 reporting periods
and have not been early adopted by the Company or the Group. These
standards are not expected to have a material impact on the entity
in the current or future reporting periods and on foreseeable
future transactions.
3. EMPLOYEES AND DIRECTORS
2023 2022
GBP'000 GBP'000
Directors' remuneration
Directors' emoluments 523 450
Directors' pension contributions to money
purchase schemes 29 26
GBP'000 GBP'000
Remuneration of the highest paid
Director
Directors' emoluments 193 175
Director's pension contributions to money
purchase schemes 15 14
There are two (2022: two) Directors who are members of third
party held money purchase retirement benefits schemes.
Average monthly number of persons Number Number
employed
Office and management 4 4
Research 1 1
5 5
GBP'000 GBP'000
Staff costs during the year
Wages and salaries 520 450
Social security costs 71 48
Pension costs 29 26
620 524
4. NET FINANCE INCOME
2023 2022
GBP'000 GBP'000
Deposit account interest 41 1
5. LOSS BEFORE INCOME TAX
The loss before income tax is stated 2023 2022
after charging: GBP'000 GBP'000
Depreciation - owned assets 1 2
Research and development 2,909 1,780
Other operating leases 21 19
Foreign exchange differences 24 6
Auditor's remuneration 16 13
Auditor's remuneration for non-audit work
- taxation services - 1
* other work - -
6. INCOME TAX
2023 2022
GBP'000 GBP'000
Current tax
Adjustment to prior years - (1)
Overseas taxation credit 395 -
UK corporation tax credit on losses for the
period 438 408
------------ ------------
833 407
The credit for the year can be reconciled to 2023 2022
the accounting loss as follows: GBP'000 GBP'000
Loss before tax (3,192) (2,579)
Notional tax credit at average rate of 20.5%
(2022: 19%) 825 490
Effects of:
Capital allowances more than depreciation - 7
Other timing differences (234) (1)
Unutilised tax losses (293) (258)
Losses surrendered for research and development
tax credits (298) (239)
Research and development tax credits claimed 833 408
Actual current tax credit in the year 833 407
The tax rate of 20.5% used above is the average corporation tax
rate applicable in the United Kingdom.
A potential deferred tax asset as at 30 June 2023 of GBP2.8
million (2022: GBP2.8 million) calculated using the expected
corporation tax rate of 25% (2022: 25%), has not been recognised,
as there remains a significant degree of uncertainty that the Group
will make sufficient profits in the foreseeable future to justify
recognition.
7 EARNINGS PER SHARE
The calculation of loss per share is based 2023 2022
on the following data:
Loss on ordinary activities after tax GBP3,192,000 GBP2,172,000
Weighted average number of shares in issue 68,069,416 67,679,329
Basic and diluted loss per share (pence) (4.7) (3.2)
As the Group has generated a loss for the period, there is no
dilutive effect in respect of share options.
8. PROPERTY PLANT & EQUIPMENT
Fixtures
and computers
GBP'000
Cost
At 1 July 2022 and 30 June 2023 13
Depreciation
At 1 July 2022 11
Charge for the year 1
At 30 June 2023 12
Carrying amount
At 30 June 2022 1
=======
At 30 June 2023 2
9. INVESTMENTS
Interest in
associate
GBP'000
Cost
At 1 July 2022 1,176
Additions 41
At 30 June 2023 1,217
Provision for impairment
At 1 July 2022 1,153
Impairment for year 18
At 30 June 2023 1,171
Net book value
At 30 June 2022 46
At 30 June 2023 23
The investment in associate represents the investment by the
Group in the partnership with the Cancer Research Technology
Pioneer Fund to advance the SRA737 programme and has been accounted
for using the equity method. Sareum's interest in the associate
partnership is 27.5%. As at 30 June 2023 the partnership had net
assets of GBP19,000 (2022: GBP83,000) and had incurred cumulative
losses of GBP0.8 million (2022: GBP0.7 million).
10. TRADE AND OTHER RECEIVABLES
2023 2022
GBP'000 GBP'000
Amounts falling due within one year:
Corporation tax 823 408
Other taxation receivable 75 47
Prepayments and accrued income 81 45
979 500
11. CASH AND CASH EQUIVALENTS
2023 2022
GBP'000 GBP'000
Bank deposit accounts 994 4,261
12. TRADE AND OTHER PAYABLES
Group
2023 2022
GBP'000 GBP'000
Amounts falling due within one year:
Trade creditors 694 387
Social security and other taxes 22 18
Other creditors 5 5
Accrued expenses 146 45
867 455
Trade payables and accruals principally comprise amounts
outstanding for trade purchases and ongoing costs. The average
credit term agreed with suppliers is 30 days and payment is
generally made within the agreed terms.
13. LEASING AGREEMENTS
The lease on the office occupied by the Company is of low value,
expiring in December 2023. The rent payments in the year are also
not material to the financial statements.
14. FINANCIAL INSTRUMENTS
The Group's principal financial instruments are trade and other
receivables, trade and other payables and cash. The main purpose of
these financial instruments is to finance the Group's ongoing
operational requirements. The Group does not trade in derivative
financial instruments.
The major financial risks faced by the Group, which remained
unchanged throughout the year, are interest rate risk, foreign
exchange risk and liquidity risk. Policies for the management of
these risks are shown below and have been consistently applied.
MARKET RISKS
Interest rate risk
The Group is exposed to interest rate risk as cash balances in
excess of immediate needs are placed on short term deposit. The
Group seeks to optimise the interest rates received by continuously
monitoring those available. The value of the Group's financial
instruments is not considered to be materially sensitive to these
risks and therefore no sensitivity analysis has been provided.
Foreign exchange risk
The Group's activities expose it to fluctuations in the exchange
rate for the Euro and the US dollar. Funds are maintained in
sterling and foreign currency is acquired on the basis of committed
expenditure. The value of the Group's financial instruments is not
considered to be materially sensitive to these risks and therefore
no sensitivity analysis has been provided.
NON-MARKET RISKS
Liquidity risk
The Board has responsibility for reducing exposure to liquidity
risk and ensures that adequate funds are available to meet
anticipated requirements from existing operations by a process of
continual monitoring. The value of the Group's financial
instruments is not considered to be materially sensitive to these
risks and therefore no sensitivity analysis has been provided.
15. SHARE CAPITAL
Called up, allotted and fully paid 2023 2022
GBP GBP
68,069,416 (2022: 68,069,416) Ordinary Shares
of 1.25p each 850,867 850,867
The Ordinary Shares carry equal rights in respect of voting at a
general meeting of shareholders, payment of dividends and return of
assets in the event of a winding up.
16. RESERVES
Reserve Description and purpose
Share capital Amount of the contributions made by shareholders
in return for the issue of shares.
Share premium Amount subscribed for share capital in
excess of nominal value.
Retained earnings Cumulative net gains and losses recognised
in the consolidated and the Company Balance
Sheet.
Foreign exchange reserve Arising on consolidation of the overseas
subsidiary
Share-based compensation Cumulative fair value of share options
reserve granted and recognised as an expense
in the Income Statement.
Details of movements in each reserve are set out in the
Consolidated Statement of Changes in Equity.
17. PENSION COMMITMENTS
The Group makes contributions to its employees' own personal
pension schemes. The contributions for the period of GBP29,000
(2022: GBP26,000) were charged to the profit and loss account. At
the balance sheet date contributions of GBP5,000 (2022: GBP4,000)
were owed and are included in creditors.
18. CONTINGENT LIABILITIES
There are no contingent liabilities (2022: GBPnil).
19. RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS
Group 2023 2022
GBP'000 GBP'000
Operating loss from continuing operations (4,024) (2,580)
Adjustments for:
Depreciation 1 2
Share of loss of associate 18 3
Foreign exchange differences 24 -
Finance income (41) (1)
Operating cash flows before movements in
working capital (4,022) (2,576)
Decrease/(increase) in receivables (65) 56
Increase in payables 411 171
Cash used in operations (3,676) (2,349)
======= =======
20. POST BALANCE SHEET EVENTS
In August 2023, after the period end, Sareum agreed terms on an
Equity Prepayment Facility (the "Facility") of up to GBP5.0 million
with RiverFort Global Opportunities PCC Ltd and received an initial
deposit of GBP2.0 million, net of associated costs, on 4 August
2023.
The Company intends to use the Facility, if fully drawn,
together with the receipt of anticipated tax incentives to the
amount of GBP1.6 million (of which GBP0.4m was received in
Australia in September 2023), to complete the Phase 1a/b clinical
development of the Group's lead candidate SDC-1801
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR FLFESIVLRIIV
(END) Dow Jones Newswires
October 09, 2023 02:00 ET (06:00 GMT)
Sareum (LSE:SAR)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Sareum (LSE:SAR)
Gráfica de Acción Histórica
De May 2023 a May 2024
