TIDMPYC
RNS Number : 4547N
Physiomics PLC
30 September 2021
30 September 2021
Physiomics plc
("Physiomics" or "the Company")
Final Results for the year ended 30 June 2021 and Date of
AGM
Highlights
Financial Highlights
-- Total income (revenue and grant income) decreased 13% to
GBP730,899 (2020: GBP841,649), the third highest in the Company's
history despite a full year of the impact of Covid-19
-- The operating loss increased 151% to GBP337,040 (2020: GBP134,385)
-- The loss after taxation increased 235% to GBP215,827 (2020: GBP64,424)
-- At 30 June 2021, the surplus of shareholders' funds was
GBP1,165,714 (30 June 2020: GBP1,314,981)
-- Cash and cash equivalents at 30 June 2021 of GBP1,043,450 (30 June 2020: GBP1,047,860)
Operational highlights
-- Renewal of agreement with Merck KGaA in December 2020 and
further extension signed in May 2021
-- Three additional contracts with Bicycle signed over the course of the financial year
-- Addition of new clients Astellas Pharma in July 2020 and Numab Therapeutics in May 2021
-- Partnership with TabulaRasa Healthcare's (NASDAQ:TRHC) DoseMeRx subsidiary in Dec 2020
-- Enhanced agreement with ValiRx in Feb 2021 which renews and
extends the previous collaboration between the two companies
-- Approval in Dec 2020 of the NIHR-funded PARTNER study in
prostate cancer patients to gather data for validation and further
development of the Company's personalised dosing tool
-- Creation of a Scientific Advisory Board (SAB) of independent
experts to create and evaluate a pool of new ideas and
opportunities
-- After the period end, the Company also expanded both its
technical team through the recruitment of new scientist and
enhanced its business development capabilities through the
recruitment of its first Head of Business Development
Dr Paul Harper, non-executive Chairman commented: "Despite COVID
related headwinds, the Company has hit the trading targets
announced on 10 May 2021 and careful cash management has meant that
the Company finished the year with over GBP1m of cash.
In addition to adding new clients Astellas Pharma Inc and Numab
Therapeutics over the course of the year, the Company initiated a
number of longer-term value-generating activities including an
expanded agreement with ValiRx and new personalised medicine
partnership with US company TabulaRasa Healthcare's subsidiary
DoseMeRx.
Our relationship with Merck has continued to provide a solid
base upon which Dr Millen and his team can build. For the first
time, the Company has recruited a dedicated full-time Head of
Business Development who is expected to significantly develop its
pipeline over the course of the current financial year. In parallel
with this, the Company convened an external advisory board in the
spring which recommended a number of areas felt to have particular
potential for the Company and the Directors have taken actions to
investigate these further. The team has shown great spirit and
resilience during a challenging year and is now poised to drive the
Company forward once more."
Annual General Meeting
The Company values the views of its shareholders and recognises
their interest in the Company's strategy, performance and the
ability of the board. The AGM provides an opportunity for two-way
communication and all shareholders are encouraged to attend and
participate. Separate resolutions will be put to shareholders at
the AGM, giving them the opportunity to discuss matters of
interest. The Company counts all proxy votes and will indicate the
level of proxies lodged on each resolution, after each has been
dealt with on a show of hands.
The Company intends to hold a physical AGM this year however it
is closely monitoring the COVID-19 situation, including UK
Government and ICSA 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,
should guidance change in the run up to the Company's intended AGM
date, the Company may make the decision to hold a closed AGM where
shareholders, advisors and other guests will not be allowed to
attend in person.
In the event that any changes to the 2021 AGM become
unavoidable, we will announce them on the Company's website at
www.physiomics.co.uk. 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 23 November 2021.
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
Overview
The Company is pleased to report that despite a difficult year,
due mainly to the COVID pandemic and partly to investment in
longer-term value generating initiatives, it met its revised
trading targets as announced on 10 May 2021. In particular, despite
a widening of its post-tax losses compared with the financial year
ended 30 June 2020, the Company has maintained cash and equivalents
of over GBP1m at 30 June 2021, only GBP4k down on the closing value
at the end of its previous financial year.
Merck and Bicycle Therapeutics each awarded the Company multiple
repeat contracts during the year. It is noteworthy that Physiomics
is now supporting Bicycle with all its major clinical programs. The
addition of Astellas Pharma was flagged as a post-period event in
our last annual report, but the Company has also signed on Numab
Therapeutics this year. Numab is a well-funded biotech operating in
various therapy areas including oncology and boasts Daniel Vasella,
the former CEO of Novartis, as its Chairman.
Since its fund raise in May 2020, the Company has increased its
marketing activities, invested in its personalised medicine
initiatives (both with DoseMeRx and through its PARTNER study in
Portsmouth) and hired two new staff members, one scientist and a
Head of Business Development. In addition, the Company has invested
in resources and project activities which are not currently cash
generative but are designed to build for the future. These include
the collaborations with ValiRx and DoseMeRx and account for the
additional losses not attributable to COVID-related factors.
The initial integration of our personalised dosing software in
DoseMe's cloud-based platform is now complete and user testing is
ongoing.
In addition to our core consulting business and personalised
dosing, the Company is actively exploring other possible activities
to utilise its significant capabilities in the healthcare and
mathematical modelling space. An advisory board was convened in
April 2021 and a number of potential avenues were recommended for
further investigation.
Overall, the year has been a challenging one for Physiomics,
however, the Directors believe it is well positioned to recover and
advance over the course of the current financial year.
Financial Review
The Company's full year total income of GBP730,899 reflects a
year of Covid-19 related delays but was nevertheless the third
highest in its history. Revenue was the second highest in the
Company's history (marginally higher than 2019) but grant income
slipped back below 2020 and 2019 levels because of the delays to
the patient recruitment caused by the focus of hospitals on
Covid-19. Total income in the second half fell to GBP345,209
(second half of prior year: GBP499,037) although first half
unaudited total income of GBP385,690 had been ahead of the
GBP342,612 for the first half in the previous year.
The operating loss increased 151% to GBP337,040 (2020:
GBP134,385). The loss after taxation increased 235% to GBP215,827
(2020: GBP64,424).
Net assets at the year-end were GBP1,165,714 (2020:
GBP1,314,981) of which GBP1,043,450 (2020: GBP1,047,860) comprised
cash and cash equivalents.
The net cash outflow from operating activities fell by GBP83,763
(2020: GBP27,402) compared with the previous year to GBP32,607
(2020: GBP116,370) despite the increased loss after taxation.
COVID 19
The ongoing COVID 19 crisis has led to a delay in the
commencement of our NIHR funded trial at the Portsmouth Technology
Trials Unit although the Company was pleased to receive ethics
committee and UK Health Research Authority approval for the trial
in December 2020 and the trial formally opened in August 2021. It
is expected to last around one year.
In addition, a number of the Company's current and potential new
clients saw delays in the commencement or recruitment to their own
clinical trials, which have had a knock-on effect due to associated
delays in the generation of data needed for modelling. We believe,
however, that for the most part these will be timing issues leading
to delays rather than cancellations of projects.
On a positive note, the Company's employees continue to work
effectively from home office settings with no reduction in
efficiency or availability and, we believe, without impacting on
the quality of interactions with clients. Going forwards the
Company will adopt a flexible model with combined home and office
working. Such a model has been welcomed by staff and offers the
Company significantly more flexibility when recruiting new
employees. As government guidelines on home working evolve we will
keep this under review.
Staff
The Company's staff remain critical in what is essentially a
knowledge-based consultancy business. For this reason, the Company
is delighted that it continues to be able to attract new talent as
and when required. The Company successfully employed a
post-doctoral intern, its first for more than five years, between
September 2020 and January 2021, having received a large number of
applications from well-qualified candidates. Following our May 2020
fund-raise, where it was stated that funds would be used partly to
retain and recruit new staff, the Company has also taken on both a
new junior scientist to join the modelling team as well as an
experienced Head of Business Development to drive development of
our client pipeline and support the growth of the consulting
business.
The board will continue to review staff utilisation rates and
anticipated workload on an ongoing basis and 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 consulting business, with
an increasing number of referrals from the Company's expanding
network of past and current clients and contacts as well as new
business generated by our marketing activities. In parallel, it is
pursuing opportunities in personalised medicine and has identified
other potential areas of value-adding activity where its core
modelling capabilities could be used.
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 inhibitors, radiation therapy and other areas of specialism.
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.
Client companies rely heavily on the knowledge and experience of
our team when evaluating data and devising new programmes. The
team's exposure to and expanding expertise in a wide range of
cancer treatment modalities is attractive to new and existing
clients.
The team's expertise 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 the
performance of drugs. 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. We believe our experience and capabilities have been
helpful in supporting clients in identifying optimal clinical trial
designs and justifying this to regulatory authorities. In the
2020/21 financial year, the Company has been able to:
-- Support big pharma companies in developing evidence based
dose reduction algorithms to optimise the balance of efficacy and
toxicity. These algorithms have the potential to be used in the
pivotal studies of significant big pharma pipeline drugs
-- Predict the clinical efficacy of cancer regimens amongst
patients with various specific genetic settings, based on extensive
preclinical modelling and then translation of these settings to
man
-- Use modelling to generate hypotheses as to the mechanism of
action of client assets and predict/ explain why they may have a
competitive advantage over other marketed drugs with the same
targets
-- Support and inform first in man dosing based on predictions
of biologically effective dose from computer models
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 the
observational "PARTNER" 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.
This trial was approved by ethics committee and HRA in December
2020 however its start was delayed until July 2021 due to COVID
related constraints on hospital activity.
In parallel with the PARTNER study, the Company entered into a
research collaboration with the DoseMeRx subsidiary of TabulaRasa
Healthcare (TRHC) in the US in December 2020. Through this
initiative, Physiomics' personalised docetaxel dosing tool will be
integrated into TRHC's market-leading precision dosing solution and
tested with its customers. If successful, the next stage would be a
commercial collaboration and potential expansion of the tool to
address other drugs and disease conditions.
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 risk-sharing deal with ValiRx plc announced in February 2021
-- The collaboration with TabulaRasa Healthcare in the US around
the Company's personalised dosing software tool announced in
December 2020
-- The embedding of our technology as part of a broader offering
in collaboration with other service providers (discussions on
going)
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. Our newly
formed SAB is expected to drive the development of new ideas and
activities designed to broaden and build our business. New experts
will be added as priorities emerge and develop.
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 90 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);
-- We have particular expertise in the sourcing, curating and
analysis of healthcare data. Whether originating from clients or
within the public domain, our team comprises experts in data
analysis, coding and machine learning (AI) techniques that underpin
the modelling activities we carry out on behalf of our clients;
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 consulting business (whether
through fee for service or risk-sharing arrangements) while
actively investigating other possible applications of our core
modelling and simulation capabilities. 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 other clients);
-- Diversify the customer base by working with a variety of
commercial, and not-for-profit clients and grant funded projects
(CRUK, Innovate UK, NIHR etc);
-- Broaden our geographical presence in Europe and North America
by leveraging the Company's existing contact base and increasing
marketing and business development efforts;
-- Work with a mix of early pre-clinical stage projects and high
value clinical development phase of oncology; and
-- Develop new, complementary areas of business such as
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) decreased 13% to
GBP730,899 (2020: GBP841,649), the third highest in the Company's
history
-- The operating loss increased 151% to GBP337,040 (2020: GBP134,385)
-- The loss after taxation increased 235% to GBP215,827 (2020: GBP64,424)
-- At 30 June 2021, the surplus of shareholders' funds was
GBP1,165,714 (30 June 2020: GBP1,314,981)
-- Cash and cash equivalents at 30 June 2021 of GBP1,043,450 (30 June 2020: GBP1,047,860)
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 presented at AACR; and attended
ASCO, ESMO and SITC; 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, as well as
long-standing client Merck KGaA. The Company has now worked with
Merck for over nine years and is in the fourth 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. 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 a
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, 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.
The Company has developed a tool for personalised dosing, funded
mainly by two Innovate UK grants and in March 2020 announced a that
the NIHR, through its i4i initiative, would be funding an
observational study to be carried out by the Portsmouth Technology
Trials Unit (PTTU). Although the start of this study was
significantly delayed due to restrictions imposed by COVID 19, it
was approved in December 2020 and formally commenced in August
2021. The trial is expected to last up to 12 months. In parallel,
the Company continues to work on its collaboration with TabulaRasa
Healthcare Inc through its DoseMeRx subsidiary (as announced in
December 2020).
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. Despite the headwinds experienced by the
Company this financial year, total revenues during the last five
financial years (from YE June 2017 to YE June 2021) exceed the
total revenues of the 15 years prior to that. In particular,
revenue for the past 3 financial years (YE June 2019 to YE June
2021) has averaged GBP740k annually, compared with GBP315k for the
3 years before that (YE June 2016 to YE June 2018). Similarly, loss
after tax for the past 3 financial years (YE June 2019 to YE June
2021) has averaged GBP128k, compared with an average of GBP321k for
the 3 years before that (YE June 2016 to YE June 2018). Year-end
net assets have decreased 11% from their year-end peak for June
2020 but remain higher than all year ends prior to that.
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 The Company continues to broaden
major customer a high dependence on a small its customer base and create
number of customers. This a balance between a small number
leads to the risk that a of large customers and a larger
large customer could significantly number of small customers. The
reduce or cancel its contracts Company continues to foster a
with the Company. close relationship with its main
big pharma client Merck KGaA
and is currently in the fourth
year of a master services agreement
signed with that client in 2017.
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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 We continually develop our model
its Virtual Tumour(TM) technology. 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
Key personnel leaving the working. A collegiate working
Company could lead to a environment and opportunities
short-term reduced capacity for personal and professional
to service client projects. development also help to maintain
staff satisfaction.
Over the course of this financial
year, the Company took on an
intern and recruited a new technical
team member. After the end of
the period the Company also recruited
a head of business development.
In all cases a high number of
qualified applications were 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
The process of winning major investors.
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-term
faces significant uncertainties deposits with banks and other
in its cash flow. financial institutions by holding
deposits with an institution
with a medium grade credit rating
or better.
The Company had over GBP1.0 million
in cash and equivalents at the
year end and net cash outflows
were less than GBP35k. As such
and based on the amount 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 Major agencies such as the FDA
that the business model are actively promoting the use
is impacted by future changes of modelling and simulation and
in regulations in the medical issue advisory papers which set
and pharmaceutical industry. 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 completed CyberEssentials
accreditation following an updating
of its systems hardware and processes
to increase resilience vs cyber
related attacks and risks.
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COVID 19 The current COVID 19 pandemic As described elsewhere in this
has far-reaching consequences Annual Report, the Company experienced
for many companies. significant headwinds relating
to COVID this year due to delays
in client clinical trials as
well as in the Company's own
PARTNER trial relating to its
personalised medicine. These
issues now appear to be resolving
and in particular, the Company's
PARTNER trial has now formally
opened for recruitment from August
2021.
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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 2021.
Results
There was a loss for the year after taxation amounting to
GBP215,827 (2020 loss after tax: GBP64,424). 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 20 August 2021, the
following shareholders had over 3% interests in the issued ordinary
shares of the Company.
Shares (m) Holding
%
Mr Zahid Ali* 6.24 6.58%
Mr Paul McKillen** 3.00 3.08%
* Based on beneficial ownership search conducted on 20 August
2021
** Based on TR1 notified to the Company on 19 July 2019
On 20 August 2021, Dr Paul Harper held 668,564 ordinary shares,
Dr Jim Millen held 1,384,393 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
2021 is set out below:
Total Total
Emoluments Bonus Benefits Pension Contributions 2021 2020
GBP GBP GBP GBP GBP GBP
Dr P B Harper 37,185 - - - 37,185 37,000
Dr J S Millen 124,117 9,750 1,759 10,452 146,079 135,547
Dr C D Chassagnole 67,011 5,495 1,451 9,241 83,198 76,191
Total 228,313 15,245 3,210 19,693 266,461 248,738
----------- ------- --------- ---------------------- -------- --------
Environmental and Social Governance
The Company has a relatively small environmental footprint and
implements various policies to ensure it is kept to a minimum,
including:
-- Use of modular office space with services shared with other occupiers
-- Adoption of flexible "hot-desking", especially in light of
new more flexible home/ office working models post-COVID
-- Recycling of office waste where possible
-- Discontinuation of the use of small plastic bottles of water for staff and visitors
The activities of the company are targeted at supporting
companies developing drugs and therapies to fight cancer and in
addition, the computer-based modelling we undertake serves to
reduce the volume of animal testing needed in developing such
therapies.
Finally, in terms of diversity and inclusion, of eight full time
staff (at the time of going to press), five are women and four are
non-UK nationals.
Post balance sheet events
There were no material post-balance sheet events.
Statement as to disclosure of information to auditors
The Directors in office on 29 September 2021 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.
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 2021 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 the related notes. 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 2021 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
Journals can be posted that We examined journals posted around
significantly alter the Financial the year end, specifically focusing
Statements. on areas which are more easily manipulated
such as accruals, prepayments, investment
valuation and the bank reconciliation.
------------------------------------------------
Going Concern and COVID-19
There is a risk that the Company We reviewed the Directors' assessment
is not a going concern and have of the risks and impacts of COVID-19
been impacted from COVID-19 on the business. We compared this
materially. assessment to our own understanding
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
There is a risk that revenue Income was tested on a sample basis
is materially understated due from contracts. No evidence of fraud
to fraud. or other understatement was identified.
------------------------------------------------
Accounting Estimates
Potential risk of inappropriate All areas were examined to identify
accounting estimates giving any potential accounting estimates.
rise to misstatement in the These estimates were then reviewed
accounts. and tested for adequacy.
------------------------------------------------
Overstatement of Administrative
Expenses A proof in total calculation and substantive
There is a risk that the Company's testing were both undertaken and no
administrative expenses are evidence of overstatement was identified.
overstated.
------------------------------------------------
Grant Income
There is a risk that grant income Grant income was reviewed and a sample
may be materially misstated. basis from contracts. No evidence
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 GBP18,781. 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 17, 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.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud is detailed below:
-- We obtained an understanding of the legal and regulatory
frameworks that are applicable to the Company and determined the
most significant are those that relate to the reporting framework
(IFRS, the Companies Act 2006)) and the relevant tax compliance
regulations in which the Company operates.
-- We understood how the Company is complying with those
frameworks by making enquiries on the management and those
responsible for legal and compliance procedures. We corroborated
our enquiries through our review of board minutes and any
correspondence received from regulatory bodies.
-- We assessed the susceptibility of the Company's financial
statements to material misstatement, including how fraud might
occur by enquiring with management during the planning, fieldwork
and completion phase of our audit. We considered the controls that
the Company has established to address risks identified, or that
otherwise prevent, deter and detect fraud and how management
monitors those controls. Where the risk was considered to be
higher, we performed audit procedures to address each identified
fraud risk including revenue recognition. These procedures included
testing manual journals and were designed to provide reasonable
assurance that the financial statements were free from fraud or
error.
-- Based on this understanding we designed our audit procedures
to identify non-compliance with such laws and regulations. Our
procedures involved journal entry testing, with a focus on manual
journals and journals indicating large or unusual transactions
based on our understanding of the business; enquiries of the
management and focus testing.
An auditor conducting an audit in accordance with ISAs (UK) is
responsible for obtaining reasonable assurance that the financial
statements taken as a whole are free from material misstatement,
whether caused by fraud or error and in our audit procedures
described above. Owing to the inherent limitations of an audit,
there is an unavoidable risk that some material misstatements of
the financial statements may not be detected, even though the audit
is properly planned and performed in accordance with the ISAs
(UK).
As part of an audit in accordance with ISAs (UK), we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:
-- Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
-- Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the internal control.
-- Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclosures
made by the director.
-- Conclude on the appropriateness of the director's use of the
going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the company's
ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or
conditions may cause the company to cease to continue as a going
concern.
-- Evaluate the overall presentation, structure and content of
the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
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 2021
Year Year
ended ended
30 June 30 June
2021 2020
Notes GBP GBP
Revenue 3 702,314 799,055
Other operating income 3 28,585 42,594
Total income 730,899 841,649
Net operating expenses (1,067,939) (976,034)
Operating loss 4 (337,040) (134,385)
Finance Income 7 110 679
Loss before taxation (336,930) (133,706)
Income tax income 9 121,103 69,282
----------- ---------
Loss for the year attributable
to equity shareholders 25 (215,827) (64,424)
=========== =========
Earnings per share (shown
in pence) 10
Basic and diluted (0.22)p (0.09)p
Statement of Comprehensive Income
Year ended Year ended
30 June 30 June
2021 2020
GBP GBP
Loss for the year (215,827) (64,424)
Other comprehensive income - -
Total comprehensive income/ (expense) for the
year (215,827) (64,424)
Attributable to:
---------- ----------
Equity holders (215,827) (64,424)
========== ==========
Statement of Financial Position as at 30 June 2021
2021 2020
Non-current assets - Notes GBP GBP
Intangible assets 12 3,435 3,864
Property, plant and equipment 13 15,700 11,536
19,135 15,400
----------- -----------
Current assets
Trade and other receivables 14 260,699 383,238
Cash and cash equivalents 1,043,450 1,047,860
----------- -----------
1,304,149 1,431,098
----------- -----------
Total assets 1,323,284 1,446,498
----------- -----------
Current liabilities
Trade and other payables 18 114,042 123,819
Deferred revenue 19 43,528 7,698
----------- -----------
Total liabilities 157,570 131,517
----------- -----------
Net current assets 1,146,579 1,299,581
----------- -----------
Net assets 1,165,714 1,314,981
=========== ===========
Equity
Called up share capital 22 1,282,736 1,275,752
Share premium account 23 5,933,993 5,896,737
Other reserves 24 222,274 199,954
Retained earnings 25 (6,273,289) (6,057,462)
----------- -----------
Total equity 1,165,714 1,314,981
=========== ===========
The financial statements were approved by the board of directors
and authorised for issue on 30 September 2021.
Statement of Changes in Equity for the year ended 30 June
2021
Share Share Other Reserves Profit Total
capital premium and loss
account reserves
Notes GBP GBP GBP GBP GBP
Balance at 1 July 2019
1,181,038 5,228,172 191,742 (5,993,038) 607,914
Year ended 30 June
2020:
Loss and total
comprehensive
income for the year - - - (64,424) (64,424)
Issue of share capital 23 94,714 668,565 - - 763,279
Transfer to other
reserves - - 8,212 - 8,212
---------- ---------- -------------- ------------ -------------------
Balance at 30 June 2020 1,275,752 5,896,737 199,954 (6,057,462) 1,314,981
---------- ---------- -------------- ------------ -------------------
Year ended 30 June
2021:
Loss and total
comprehensive
income for the year - - - (215,827) (215,827)
Issue of share capital 23 6,984 37,256 - - 44,240
Transfer to other
reserves - - 22,320 - 22,320
---------- ---------- -------------- ------------ -------------------
Balance at 30 June 2021 1,282,736 5,933,993 222,274 (6,273,289) 1,165,714
========== ========== ============== ============ ===================
Cash Flow Statement for the year ended 30 June 2021
2021 2020
Notes GBP GBP GBP GBP
Cash flows from operating
activities
Cash absorbed by operations 32 (116,122) (200,008)
Tax refunded 83,515 83,638
------------ -----------
Net cash outflow from operating
activities (32,607) (116,370)
Investing activities
Purchase of intangible assets - (2,913)
Purchase of tangible fixed
assets (16,153) (2,181)
Interest received 110 679
---------- ----------
Net cash used in investing
activities (16,043) (4,415)
Financing activities
Proceeds from issue of shares 44,240 828,750
Share issue costs - (65,471)
---------- ----------
Net cash generated from financing
activities 44,240 763,279
------------ -----------
Net increase in cash and
cash equivalents (4,410) 642,494
Cash and cash equivalents
at beginning of year 1,047,860 405,366
------------ -----------
Cash and cash equivalents
at end of year 1,043,450 1,047,860
============ ===========
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 Directors expect to be less
affected by current economic conditions, including the potential
consequences of Brexit, compared to other industries.
The Company had GBP1,043,450 of cash and cash equivalents as at
30 June 2021(2020: GBP1,047,860).
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 the next twelve months. In coming to this conclusion,
the Company notes that current cash and currently contracted
projects are projected to cover budgeted expenses for the majority
of this period. In addition to currently contracted projects the
Company anticipates a number of new clients as well as repeat
business from some existing clients.
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
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.
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:
2021 2020
GBP GBP
Revenue 702,314 799,055
======== ========
Other operating
income
Grant income 28,585 42,594
======== ========
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 (2020: UK, European Union and USA) from
its principal activity.
its principal activity.
4 Operating loss
2021 2020
GBP GBP
Operating loss for the period is stated after charging/(crediting):
Net foreign exchange losses/(gains) 160 169
Government grants (28,585) (42,594)
Fees paid to the Company's auditor, refer to below 10,500 14,000
Depreciation of property, plant and equipment 11,989 9,083
Amortisation of intangible assets 429 422
Share-based payments 22,320 8,212
======== ========
5 Auditors remuneration
2021 2020
Fees payable to the Company's auditor and associates: GBP GBP
For audit services
Audit of the Company's financial statements 10,500 10,000
======== ========
For other services
Taxation compliance services - 2,000
Other taxation services - 2,000
Total fees 10,500 14,000
======== ========
6 Employees
The average monthly number of persons (including directors)
employed by the Company during the year was:
2021 2020
Number Number
7 7
=========== ============
Their aggregate remuneration comprised: 2021 2020
GBP GBP
Wages and salaries 435,071 408,051
Social security costs 48,134 44,785
Other pension and insurance benefit costs 36,997 35,636
----------- ------------
520,202 488,472
=========== ============
Details of the remuneration of Directors are included in the
Directors Report on page 17.
7 Finance income
2021 2020
GBP GBP
Interest income
Bank deposits 110 679
================ =================
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 2021 and 30
June 2020.
9 Income tax expense
Continuing operations
2021 2020
GBP GBP
Current tax
Research and development tax credit: current year (119,374) (81,786)
Research and development tax credit: prior year (1,729) 12,504
----------------- ----------
(121,103) (69,282)
================= ==========
The charge for the year can be reconciled to the loss per the
income statement as follows:
2021 2020
GBP GBP
Loss before taxation (336,930) (133,706)
================= ==========
Expected tax charge based on a corporation tax
rate of 19.00% (64,017) (25,404)
Expenses not deductible in determining taxable
profit (8,943) 1,271
Unutilised tax losses carried forward 9,636 -
Adjustment in respect of prior years' research
and development (1,729) 12,504
Research and development expenditure tax credit (119,374) (81,786)
Deferred / (accelerated) capital allowances (832) 1,562
Research and development enhancement (83,404) (48,254)
Loss surrendered for tax credits 147,560 70,825
----------------- ----------
Tax charge for the year (121,103) (69,282)
================= ==========
At 30 June 2021 tax losses of GBP3,888,387, (2020: GBP3,846,025)
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 GBP736,649, (2020: GBP729,527).
Future changes to the rate of corporation tax
In the 2021 budget it was announced that the main rate of
corporation tax will increase from 19% to 25% from 1(st) April
2023.
10 Earnings per share
2021 2020
GBP GBP
Number of shares
Weighted average number of ordinary shares for
basic earnings per share 97,127,381 73,721,869
------------ ------------
Earnings - Continuing operations
Loss for the period from continued operations (215,827) (64,424)
------------ ------------
Earnings for basic and diluted earnings per share
being net profit attributable to equity shareholders
of the Company for continued operations (215,827) (64,424)
============ ============
Earnings per share for continuing operations
Basic and diluted earnings per share (shown in
pence) (0.22) (0.09)
Basic and diluted earnings per share
Loss from continuing operations (shown in pence) (0.22) (0.09)
-------- --------
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
2021 2020
Held for trading: GBP GBP
Current financial assets
Trade and other receivables 31,356 78,863
Cash and cash equivalents 1,043,450 1,047,860
--------- ---------
1,074,806 1,126,723
========= =========
Current financial liabilities Trade and other
payables 98,916 109,029
Deferred revenue 43,528 7,698
--------- ---------
142,444 116,727
========= =========
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 Total
GBP GBP
Cost
At 1 July 2019 1,385 1,385
Additions 2,913 2,913
------------------- ------------------
At 30 June 2020 4,298 4,298
At 30 June 2021 4,298 4,298
------------------- ------------------
Amortisation and impairment
At 1 July 2019 12 12
Charge for the year 422 422
At 30 June 2020 434 434
Charge for the year 429 429
At 30 June 2021 863 863
------------------- ------------------
Carrying amount
At 30 June 2021 3,435 3,435
=================== ==================
At 30 June 2020 3,864 3,864
=================== ==================
13 Tangible fixed assets
Fixtures IT equipment Total
and fittings
Cost GBP GBP GBP
At 1 July 2019 2,949 56,538 59,487
Additions 79 2,102 2,181
At 30 June 2020 3,028 58,640 61,668
-------------- ------------- -------
Additions - 16,153 16,153
At 30 June 2021 3,028 74,793 77,821
-------------- ------------- -------
Accumulated depreciation and impairment
At 1 July 2019 1,892 39,157 41,049
Charge for the year 408 8,675 9,083
-------------- ------------- -------
At 30 June 2020 2,300 47,832 50,132
Charge for the year 411 11,578 11,989
At 30 June 2021 2,711 59,410 62,121
-------------- ------------- -------
Carrying amount
At 30 June 2021 317 15,383 15,700
-------------- ------------- -------
At 30 June 2020 728 10,808 11,536
-------------- ------------- -------
At 30 June 2019 1,058 17,380 18,438
-------------- ------------- -------
14 Trade and other receivables
Due within one
year
2021 2020
GBP GBP
Trade debtors 27,578 75,085
Other receivables 3,778 3,778
Corporation tax recoverable 119,374 81,786
VAT recoverable 9,098 10,475
Prepayments and accrued income 100,871 212,114
260,699 383,238
======= =======
15 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.
16 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.
17 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.
18 Trade and other payables
Due within one year
2021 2020
GBP GBP
Trade creditors 18,842 27,932
Accruals 77,547 78,618
Social security and other taxation 15,126 14,790
Other creditors 2,527 2,479
114,042 123,819
========== =========
19 Deferred revenue
2021 2020
GBP GBP
Arising from invoices in advance 43,528 7,698
====== =====
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:
2021 2020
GBP GBP
Current liabilities 43,528 7,698
====== =====
20 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 GBP30,471 (2020: GBP29,719).
As at the statement of financial position date the Company had
unpaid pension contributions totalling GBP2,527 (2020:
GBP2,479).
21 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:
Holder Outstanding Granted Forfeited Exercised Outstanding Exercisable Exercise Date Date
at start during during during at end at end price of of expiry
of period period period period of period of period (p) grant
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 6.17 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. C.
Chassagnole - 694,287 - - 694,287 - 7.55 02-Mar-21 01-Mar-31
Dr. J.
Millen 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. J.
Millen - 985,454 - - 985,454 - 7.55 02-Mar-21 01-Mar-31
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 6.17 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
Dr. P.
Harper - 448,760 - - 448,760 - 7.55 02-Mar-21 01-Mar-31
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 6.17 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 - - 201,890 201,891 201,891 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 - - 90,000 443,000 443,000 3.16 26-Mar-19 26-Mar-29
Other staff - 1,371,499 - - 1,371,499 - 7.55 02-Mar-21 01-Mar-31
Total 6,565,430 3,500,000 - 1,745,813 8,319,617 4,751,433
----------------------------------------- ---------------------------------- ---------------------------- ---------------------------- ------------------------------ -------------------------------
The weighted average share price at the date of the grant for
share options granted in the year was GBP0.0755 (2020: GBPNil).
The options outstanding at 30 June 2021 had an exercise price
ranging from GBP0.025 to GBP0.34, and a remaining contractual life
ranging between 5 months and 10 years.
During 2021, 3,500,000 options were granted on 02 March 2021
(2020: nil). The weighted average fair value of the options on the
measurement date was GBP0.0319. Options vest according to time and
performance based criteria.
The options were granted with an exercise price of
GBP0.0755.
Fair value was measured using Black-Scholes share option pricing
model.
Inputs were as follows:
2021 2020
Expected volatility 67.64% 60.18%
Expected life 2.47 years 2.34 years
Risk free rate 0.093% 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 GBP22,320 related to equity settled share
based payment transactions were recognised in the year. (2020:
GBP8,212).
22 Share capital
2021 2020
GBP GBP
Ordinary share capital, issued and fully paid
97,334,778 Ordinary of 0.4p each (2020: 95,588,965) 389,339 382,355
2,481,657,918 Deferred of 0.036p each 893,397 893,397
--------- ---------
1,282,736 1,275,752
========= =========
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 Number Deferred
Number
At 1 July 2020 95,588,965 2,481,657,918
Issue of fully paid shares 1,745,813 -
At 30 June 2021 97,334,778 2,481,657,918
===================== ====================
Current year changes to Ordinary share capital
On 13 August 2020 the Company issued 1,655,813 ordinary shares
of 0.4p at a price of 2.5p per ordinary share following the
exercise of employee share options, the proceeds of which were used
for working capital purposes.
On 20 August 2020 the Company issued 90,000 ordinary shares of
0.4p at a price of 3.16p per ordinary share following the exercise
of employee share options, the proceeds of which were used for
working capital purposes.
23 Share premium account
GBP
At 1 July 2019 5,228,172
Issue of new shares 734,036
Share issue expenses (65,471)
--------------------------
At 30 June 2020 5,896,737
Issue of new shares 37,256
--------------------------
At 30 June 2021 5,933,993
==========================
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).
24 Other reserves: share-based compensation reserve
GBP
At 30 June 2019 191,742
Additions 8,212
------------
At 30 June 2020 199,954
Additions 22,320
------------
At 30 June 2021 222,274
============
The share-based compensation reserve represents the credit
arising on the charge for share options calculated in accordance
with IFRS 2.
25 Retained earnings
GBP
At 1 July 2019 (5,993,038)
Loss for the period (64,424)
--------------
At 30 June 2020 (6,057,462)
Loss for the period (215,827)
--------------
At 30 June 2021 (6,273,289)
==============
Retained earnings includes an amount of GBP237,889 (2020:
GBP237,889) in relation to the Equity Swap Agreement in 2014 which
under the Companies Act is not distributable.
26 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:
2021 2020
GBP GBP
Minimum lease payments under operating leases 61,351 59,293
============= =============
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:
2021 2020
GBP GBP
Within one year 6,128 6,013
------------ ------------
6,128 6,013
============ ============
27 Capital commitments
At 30 June 2021 and 30 June 2020 the Company had no capital
commitments.
28 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 22 to 25.
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.
29 Events after the reporting date
No material post balance sheet events occurred after the end of
the period.
30 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 18.
31 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.
32 Cash absorbed by operations
2021 2020
GBP GBP
Loss for the year after tax (215,827) (64,424)
Adjustments for:
Taxation credited (121,103) (69,282)
Investment income (110) (679)
Amortisation and impairment of intangible assets 429 422
Depreciation and impairment of tangible fixed assets 11,989 9,083
Equity settled share-based payment expense 22,320 8,212
Movements in working capital:
Increase in debtors 160,127 (128,484)
Decrease in creditors (9,777) 38,696
Increase in deferred revenue 35,830 6,448
----------- -----------------
Cash absorbed by operations (116,112) (200,008)
=========== =================
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
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)
James Dance & James Bellman
+44 (0)20 7409 3494
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
FR FZGZLNLFGMZM
(END) Dow Jones Newswires
September 30, 2021 02:00 ET (06:00 GMT)
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