TIDMRENE
RNS Number : 9492T
ReNeuron Group plc
30 November 2021
ReNeuron Group plc
("ReNeuron" or "the Company")
Interim Results for the six months ended 30 September 2021
ReNeuron Group plc (AIM: RENE), a UK based leader in Stem Cell
and Exosome Technologies, announces its interim results for the six
months ended 30 September 2021.
OPERATIONAL HIGHLIGHTS
hRPC stem cell therapy candidate for retinal disease
- In June, enrolment into the higher dose phase 2a extension
study was temporarily suspended due to a presumed case of bacterial
interocular infection
- Following a completed investigation, and with Data and Safety
Monitoring Board approval, by October the study was reopened in all
geographies
- First subject, post lifting of the suspension, was treated in
mid-October with early data from the extension study expected in
late Q1 2022
Exosomes platform
- Seven collaborations now proceeding with global pharma,
biotech and academic institutions, with more expected in the coming
12 months
- Pre-clinical data indicates that ReNeuron's Exosome drug
delivery technology can effectively deliver therapeutic proteins to
the brain to potentially treat neurological diseases
Other operational updates
- Collaboration signed with University College London (UCL)
investigating the use of ReNeuron's induced pluripotent stem cell
(iPSC) platform to potentially generate CAR-T and/or CAR-NK
cells
- Positive data from a separate UCL collaboration demonstrating
that ReNeuron's iPSCs can be differentiated into Schwann cells with
potential applications such as peripheral nerve damage repair
Corporate and Organisational Development
- In July Iain Ross was appointed as Non-Executive Chairman with
Dr Tim Corn stepping down but continuing to serve as Non-Executive
Director. Additionally Barbara Staehelin joined the board as Senior
Independent Non-Executive Director
- In May Dr Stefano Pluchino joined the executive team as Chief Scientific Officer
- Post period end in October 2021, Catherine Isted, ACMA, joined
the Board, replacing Michael Hunt as Chief Financial Officer
- In October 2021, following nearly 9 years of service to the
board, Professor Sir Chris Evans OBE stood down as a Non-Executive
Director, remaining as an adviser to the Board
FINANCIAL HIGHLIGHTS
- Revenue for the period of GBP58,000 relating to royalty income (H1 2020: GBP41,000)
- Loss for the period of GBP5.2 million (H1 2020: loss of GBP7.1
million) driven by lower costs
- Reduced costs incurred in the period of GBP6.1 million (H1
2020: GBP7.9 million) primarily driven by lower R&D spend
following cessation of the Company's stroke disability
programme
- Increased net cash used in operating activities of GBP4.6
million (H1 2020: GBP2.6 million) with H1 2020 benefitting from a
GBP2.9m R&D tax credit receipt
- Cash, cash equivalents and bank deposits at 30 September 2021
of GBP17.4 million (31 March 2021: GBP22.2 million) providing at
least a 12-month runway
Olav Hellebø, Chief Executive Officer, said:
"The temporary suspension of our retinitis pigmentosa programme
was an unexpected challenge in the first half of 2021, but with
recruitment now resumed we look forward to reporting results from
the high dose extension part of this phase 2a trial. Meanwhile,
exosomes are becoming an increasingly exciting method for
delivering payloads into patients and we are therefore optimistic
that we can increase the number of partnerships in this area while
continuing to progress our current collaborations toward the
clinic. We feel we are in the right place, at the right time, with
the right technology to be a leader in exosomes and look forward to
providing further updates on our progress as the excitement in this
area continues to grow."
Analyst briefing
Olav Hellebø, Chief Executive Officer, Catherine Isted, Chief
Financial Officer and Dr Stefano Pluchino, Chief Scientific Officer
will be hosting a briefing for analysts which will take place at 85
Gresham Steet, London EC2R 7HE on Tuesday 30 November 2021 at 13.00
(GMT) / 08:00 EST. A live webcast of the presentation will also be
available for those unable to attend the meeting in-person.
For more information and to register to attend the meeting
in-person or require the link to the live webcast, please email
reneuron@walbrookpr.com or call +44 (0)20 7933 8785.
Investor Briefing
Management will be hosting a live online presentation relating
to the interim results via the Investor Meet Company platform at
15.00 (GMT) on Tuesday 30 November. The presentation is open to all
existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and
register for the presentation here:
https://www.investormeetcompany.com/reneuron-group-plc/register-investor
Investors who already follow ReNeuron on the Investor Meet
Company platform will automatically be invited.
Enquiries:
ReNeuron www.reneuron.com/investors
Olav Hellebø, Chief Executive Via Walbrook PR
Officer
Catherine Isted, Chief Financial Officer
Stifel Nicolaus Europe Limited (NOMAD
and Joint Broker)
Ben Maddison, Stewart Wallace +44 (0)20 7710 7600
Allenby Capital Limited (Joint Broker) +44 (0)20 3328 5656
James Reeve/George Payne (Corporate
Finance)
Stefano Aquilino (Sales & Corporate
Broking)
Walbrook PR (Media & Investor Relations) +44 (0)20 7933 8780 or
reneuron@walbrookpr.com
+44 (0)7980 541 893 /
Paul McManus, Alice Woodings +44 (0)7407 804 654
This announcement contains inside information. The person
responsible for arranging for the release of this announcement on
behalf of the Company is Olav Hellebø, Chief Executive Officer.
About ReNeuron
ReNeuron is a UK based Proprietary Stem Cell and Exosome
Technologies company, harnessing its unique stem cell technologies
to develop 'off the shelf' treatments for disease with significant
unmet needs.
The Company's lead cell therapy candidate is in clinical
development for the blindness-causing disease, retinitis
pigmentosa. The Company has also out-licensed its CTX programme in
stroke disability to Fosun in China.
ReNeuron's stem cell derived proprietary Exosome Technology
platform offers a delivery mechanism for a variety of payloads such
as siRNA, mRNA, proteins, small molecules and genes. The Company
has a growing number of partner collaborations with Global Pharma,
Biotech and academic partners in this fast-expanding area of
scientific and commercial interest. ReNeuron also has the ability
through its conditionally immortalised induced pluripotent stem
cell (iPSC) platform to make allogeneic tissue cells of choice and
has the potential to produce exosomes with tissue specific
targeting ability.
ReNeuron's shares are traded on the London AIM market under the
symbol RENE.L. For further information visit www.reneuron.com
This announcement contains forward-looking statements with
respect to the financial condition, results of operations and
business achievements/performance of ReNeuron and certain of the
plans and objectives of management of ReNeuron with respect
thereto. These statements may generally, but not always, be
identified by the use of words such as "should", "expects",
"estimates", "believes" or similar expressions. This announcement
also contains forward-looking statements attributed to certain
third parties relating to their estimates regarding the growth of
markets and demand for products. By their nature, forward-looking
also statements involve risk and uncertainty because they reflect
ReNeuron's current expectations and assumptions as to future events
and circumstances that may not prove accurate. A number of factors
could cause ReNeuron's actual financial condition, results of
operations and business achievements/performance to differ
materially from the estimates made or implied in such
forward-looking statements and, accordingly, reliance should not be
placed on such statements.
Interim Results for the six months ended 30 September 2021
OVERVIEW
ReNeuron has seen encouraging results from all aspects of its
operations with strong progress in its seven Exosome collaborations
and the resumption of its retinitis pigmentosa extension study. The
exosomes platform has generated significant pre-clinical data in
delivery of functional proteins to the brain while the retinitis
pigmentosa extension study is expected to produce initial data by
late Q1 2022.
In the period ReNeuron welcomed Iain Ross as the Company's new
Chairman and also Barbara Staehelin joined the board as the Senior
Independent Non-Executive Director. Additionally, in October,
Catherine Isted joined ReNeuron as Chief Financial Officer.
Financially ReNeuron ended the period with cash of GBP17.4 million,
providing a cash runway of in excess of 12 months and the Company
looks forward to the year ahead maximising and building on the
foundations of the year to date.
CHAIRMAN'S STATEMENT
Having been appointed as the new Chairman in July 2021, I am
absolutely committed to working with an effective Board and
management team to accelerate the development of this business and
to create realisable value for all shareholders. I have been
impressed by the quality of the science, the breadth of the
Company's proprietary stem cell based technology platforms and the
skills and competencies of our scientific team. Our priority now is
to focus on the immediate key growth drivers, including securing
long-term industrial partnerships and investing in those assets
with inherent and potential realisable value.
Retinitis pigmentosa has a devastating impact on patients' lives
and we have been encouraged by the early stage Phase 2a clinical
data generated to date. We recognise that the clinical data
generated over the next few months will determine the most
appropriate strategy to take this programme forward. In addition,
our differentiated exosome technology platform presents us with a
unique opportunity to compete in an exciting and fast developing
sector and as a result we intend to build on the momentum already
generated through the partnerships we have established and those we
intend to target over the coming months.
Despite the breadth of our stem cell based platforms, if we are
to succeed, we need to be prepared to make tough decisions and only
progress and invest in those programmes whereby true value can be
created. Accordingly, where necessary we will look to share the
value creating potential of our assets to secure substantive
third-party collaborations, thereby increasing significantly the
probability of success in terms of product development and value
creation. The Board and management team will continue to assess all
opportunities to create value through organic growth but also, as
appropriate, explore technology licensing and acquisition
opportunities to accelerate and enhance the overall value
proposition of our Company.
I look forward to continuing to work with the ReNeuron team and
all our stakeholders.
Iain Ross
Chairman
OPERATIONAL REVIEW
hRPC (human retinal progenitor cells) for retinal disease
In the period the Company continued to progress its hRPC
therapeutic candidate which is currently undergoing Phase 2a
clinical evaluation for the treatment of the inherited
blindness-causing disorder retinitis pigmentosa (RP). The study
uses a cryopreserved hRPC formulation, enrols subjects with
advanced RP with some remaining central vision. A high dose
extension study looking to enrol nine subjects is currently
ongoing.
In early June 2021, ReNeuron announced that following a
successful surgical procedure, the fourth subject enrolled in the
extension arm of the study presented with a presumed bacterial
intraocular infection in the treated eye which impacted their
vision, and was treated initially with an appropriate regimen of
antibiotics, to which they responded with clinical improvement.
Systemic anti-inflammatory therapy was subsequently added, and the
subject continues to improve on this regimen.
As a precaution the Company temporarily suspended the dosing of
further subjects in the study while it undertook an investigation
into the cause of the event. The origin of the presumed infection
is not clear however investigations have shown no evidence of a
causal link to the drug product. The conclusions of the
investigation were submitted to the Data & Safety Monitoring
Board (DSMB) and the DSMB subsequently agreed that the study may
proceed. The study was reopened and in early October 2021 following
receipt of regulatory approval to restart the study in all
geographies.
Post period end in October the Company announced the first
subject had been treated at the Oxford eye hospital with other
surgeries planned prior to the end of 2021. ReNeuron is looking to
enrol the remaining subjects in the extension trial prior to the
end of the calendar year, with early efficacy data expected in late
Q1 2022.
The data from the extension study and the earlier lower dose
cohort will inform the Company as to the preferred dosing based on
its efficacy and safety profile, whether sub-retinal delivery
provides the optimal efficacy and duration of action and the
commercial potential. The data will support the decision whether to
move straight into a pivotal trial or whether additional subjects
should be treated to garner further sub-retinal data and also
whether to investigate further a move into the clinic with an
intravitreal dosing regimen.
Exosome Platform
The Company's proprietary exosome platform continues to move
from strength to strength. Seven collaborations with global pharma,
biotech and academic institutions now use ReNeuron's exosomes as a
delivery vehicle for their therapeutic agents targeting the brain
and other parts of the body. The whole field of the use of exosomes
to deliver various payloads is expanding rapidly and the Company is
well positioned to benefit from this growing area of science.
The Company's proprietary cell lines produce a panel of distinct
exosome drug delivery candidate tools with commercial potential and
combined with the Company's iPSC platform provides an opportunity
to generate additional bespoke tissue-specific exosomes. This
extensive repertoire of exosome candidates has the potential to
target a variety of indications and tissues.
Exosomes produced by the Company's neural stem cell line, CTX,
can be manufactured through a fully qualified, xeno-free, scalable
process and loaded with a variety of payloads, such as nucleic
acids (including siRNA, mRNA and miRNA), proteins (such as Cas9,
antibodies and peptides) as well as small molecules. These exosomes
have also been shown to exhibit a natural ability to cross the
blood brain barrier.
Post period end in October, the Company announced positive data
from its collaboration with the University of Salamanca that
provided clear pre-clinical proof-of-concept that ReNeuron's novel
exosome drug delivery technology can effectively deliver
therapeutic proteins to the specific region of the brain affected
by several neurological diseases such as stroke, Parkinson's
disease and Huntington's disease. These in vivo results are key in
showing that ReNeuron's exosome delivery technology offer a
striking higher stability, more targeted delivery, and an increase
in potency, therefore potentially solving the delivery issues that
can be experienced with therapeutic proteins.
Major pharmaceutical companies have identified therapeutic
proteins that are effective in treating a variety of neurological
diseases. However, there are major issues associated with the
delivery of these protein therapeutics, which include the poor
stability in living organisms, given that proteins rapidly break
down and do not last long in the body; as well as issues
surrounding poor tissue distribution due to an inability to target
specific tissues. Whilst these issues cannot be overcome by simply
administering more protein, as this can have unwanted side-effects,
ReNeuron believes that its proprietary exosomes have the potential
to address both these issues due to their natural tissue-targeting
ability and superior stability characteristics (as evidenced from
Reneuron's pre-clinical studies).
ReNeuron looks to expand the number of partner programmes
utilising its exosome technology platform and will continue to
invest in expanding this platform to best meet partner needs.
Other Operational updates
While earlier stage than the Exosomes platform, ReNeuron
continues to process development of the CTX cell-based Induced
Pluripotent Stem Cell (iPSC) technology platform in a number of
potential applications a nd are deploying this technology to
develop new, immortalised allogeneic cell lines of varying types as
potential therapeutic agents in diseases of unmet medical need.
ReNeuron's CTX-iPSCs can be differentiated into hematopoietic
stem cells, lymphoid progenitors and, of great interest for cancer
immunotherapy, NK and killer T-cells. The Company has also produced
pancreatic progenitor cells from ReNeuron's CTX-iPSCs and continues
to work on the scale up of the production of insulin producing
<BETA> -islet cells prior to phenotype analysis and
confirmation of their glucose responsiveness.
Post period end in October the Company announced that it had
entered into a collaboration agreement with UCL to conduct research
into the generation of immune cells from iPSCs for anti-cancer cell
therapies. ReNeuron will be providing UCL with iPSCs from its CTX
immortalised neural progenitor cell line which UCL will use to
assess the ability to differentiate into functional T cells and
Natural Killer ('NK') cells. If successful, the CXT-iPSC cell lines
will be used to generate chimeric antigen ('CAR') T cells and/or
CAR-NK cells. Additionally in November a separate collaboration
with UCL demonstrated that iPSCs can be differentiated into Schwann
cells with potential applications in areas such as peripheral nerve
damage repair.
Fosun Pharma continues to develop CTX in stroke disability in
China following the out-licence agreement signed with ReNeuron in
2019. The Company continues to look to progress this programme in
other geographies though regional partnerships.
Corporate and Organisational Development
During the period, ReNeuron has reconfigured the Board by
appointing Iain Ross as Non-Executive Chairman and Barbara
Staehelin as Senior Independent Non-Executive Director. Following
the appointment of Iain Ross, Dr Tim Corn stepped down as Chairman
but continues to serve as a Non-Executive Director. The Company
welcomed Dr Stefano Pluchino as Chief Scientific Officer in May
2021 and post period end in October 2021 Catherine Isted, ACMA,
joined the Board, replacing Michael Hunt as Chief Financial
Officer. Also, in October 2021 Professor Sir Chris Evans OBE stood
down as a Non-Executive Director. He will remain as an adviser to
the Board.
Outlook
On the Company's programme in retinitis pigmentosa, early data
from the Company's extension study is expected in late Q1 2022 and
following analysis of this data, the Company will decide on the
most appropriate next steps to progress this programme to the next
stage.
ReNeuron is encouraged by the progress made on its proprietary
Exosomes platform over the last year and the growing excitement in
the Exosomes field. The Company looks to capitalise on the
potential it sees in this field by progressing its current
collaborations and additionally by adding new partner
collaborations. The Company will continue to expand its expertise
in the Exosomes field organically through internal research but
also potentially inorganically if a suitable opportunity
arises.
The Company looks forward to the coming 12 months as it
continues to build and grow on the foundations and developments
achieved in the year to date.
Olav Hellebø
Chief Executive Officer
FINANCIAL REVIEW
During the first half of the financial year costs continue to be
closely controlled with spend primarily directed towards
progressing the Group's hRPC therapeutic candidate and proprietary
exosome platform. The total comprehensive loss for the period
reducing to GBP5.2 million (H1 2020: GBP7.1 million).
At 30 September 2021, the Group had cash, cash equivalents and
bank deposits of GBP17.4 million providing at least a 12-month
runway from the date of this announcement.
FINANCIAL HIGHLIGHTS Six months ended Six months ended Year ended
(GBP'000) 30 September 30 September 31 March
2021 2020 2021
Revenue 58 41 257
----------------- ----------------- -----------
Total comprehensive
loss 5,234 7,092 11,347
----------------- ----------------- -----------
Operating expenses 6,128 7,859 13,249
----------------- ----------------- -----------
Net cash used in
operating activities 4,599 2,588 6,052
----------------- ----------------- -----------
Cash, cash equivalents
& bank deposits 17,418 9,768 22,203
----------------- ----------------- -----------
Revenue and Other Operating Income
In the six months to 30 September 2021, revenues, which relate
to royalty income, were GBP58,000 (H1 2020: GBP41,000). No grant
income was received in the period. In 2020, GBP78,000 was received
under the Government's Coronavirus Job Retention Scheme and is
shown as other operating income.
Operating expenses
Total operating expenses reduced in the period to GBP6.1million
(H1 2020: GBP7.9 million).
This reduction in costs follows a review of programme priorities
and resource requirements, with the Group making the decision to
primarily focus its resources on its hRPC therapeutic candidate and
proprietary exosome platform following the cessation of the stroke
disability programme.
Research and development (R&D) expenditure reduced to GBP4.3
million (H1 2020: GBP5.9 million), primarily reflecting the
refocussing of activities as described above, together with
consequent cost reductions.
General and administrative expenses declined in the period to
GBP1.8 million (H1 2020: GBP1.9 million). The current year period
also included GBP0.3 million in respect of the cost of a payment in
lieu of notice for the former CFO.
Finance income/expense
Finance income represents income received from the Group's cash
and investments and gains from foreign exchange, with losses from
foreign exchange shown in finance expense.
Finance income was GBP124,000 in the period (H1 2020:
GBP16,000). The current period includes foreign exchange gains of
GBP112,000 (H1 2020: interest receivable only). In the current
period, finance expense solely comprises lease interest of
GBP18,000 (2020: GBP243,000, which included GBP225,000 foreign
exchange losses).
Taxation
Taxation for the period at GBP0.7 million primarily comprises
R&D tax credit (H1 2020: GBP0.9 million). The amount of the
R&D tax credit reducing in line with the reduction in research
and development spend.
Cash flow
Net cash used in operating activities in the period increased to
GBP4.6 million (H1 2020: GBP2.6 million), the 2020 figure
benefitting from an R&D tax credit receipt of GBP2.9 million
due for the financial year ended 31 March 2019.
The Group had cash, cash equivalents and bank deposits totalling
GBP17.4 million as of 30 September 2021 (31 March 2021: GBP22.2
million), providing at least a 12-month runway from the date of
this announcement.
Statement of financial position
Non-current assets - Property, plant and equipment have
increased as we invest in equipment to further develop the hRPC
drug product manufacturing process.
Current assets - Corporation tax receivable of GBP2.6 million
comprises the amount due from R&D tax credits for the full year
ended 31 March 2021 plus the credit due for the current period
(2020: GBP3.8 million). This debtor is lower than 2020 due to the
reduction in research and development expenditure following
cessation of the stroke programme.
Current liabilities - Trade and other payables at GBP6.6 million
are lower than 30 September 2020 but have increased since the start
of the financial year. These movements primarily reflect changes in
the level of accruals relating to clinical trials.
Catherine Isted
Chief Financial Officer
Interim Financial Statements
Unaudited Consolidated Statement
of Comprehensive Income
for the six months ended 30 September 2021
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
------------- -------------
Revenue 4 58 41 257
Other operating income 6 - 78 78
Research and development costs (4,340) (5,941) (9,503)
General and administrative
costs (1,788) (1,918) (3,746)
Operating loss (6,070) (7,740) (12,914)
Finance income 7 124 16 20
Finance expense 8 (18) (243) (516)
-------------------------------- ----- ------------- -----------
Loss before income taxes (5,964) (7,967) (13,410)
Taxation 9 730 875 2,063
-------------------------------- ----- ------------- -----------
Loss and total comprehensive
loss for the period (5,234) (7,092) (11,347)
-------------------------------- ----- ------------- ------------- -----------
Loss and total comprehensive
loss attributable to equity
owners of the company (5,234) (7,092) (11,347)
-------------------------------- ----- ------------- ------------- -----------
Basic and diluted loss per
ordinary share 10 (9.2p) (22.3p) (29.0p)
-------------------------------- ----- ------------- ------------- -----------
Unaudited Consolidated Statement of Financial Position
as at 30 September 2021
30 September 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ------------- ------------- ----------
Assets
Non-current assets
Property, plant and equipment 325 314 213
Right-of-use asset 11 423 529 473
Intangible assets 186 186 186
934 1,029 872
------------------------------- ----- ------------- ------------- ----------
Current assets
Trade and other receivables 517 835 444
Corporation tax receivable 2,565 3,778 1,832
Investments - bank deposits 6,000 - 7,500
Cash and cash equivalents 11,418 9,768 14,703
-------------
20,500 14,381 24,479
------------- -------------
Total assets 21,434 15,410 25,351
------------------------------- ----- ------------- ------------- ----------
Equity
Equity attributable to owners
of the company
Share capital 12 569 319 569
Share premium account 12 113,925 97,904 113,904
Capital redemption reserve 40,294 40,294 40,294
Merger reserve 2,223 2,223 2,223
Accumulated losses (142,858) (134,111) (138,085)
Total equity 14,153 6,629 18,905
------------------------------- ----- ------------- ------------- ----------
Liabilities
Current Liabilities
Trade and other payables 6,646 7,987 5,727
Lease liabilities 145 159 157
6,791 8,146 5,884
------------------------------- ----- ------------- ------------- ----------
Non-current liabilities
Lease liabilities 490 635 562
490 635 562
------------------------------- ----- ------------- ------------- ----------
Total liabilities 7,281 8,781 6,446
Total equity and liabilities 21,434 15,410 25,351
------------------------------- ----- ------------- ------------- ----------
Unaudited Consolidated Statement of Changes in Equity
for the six months ended 30 September 2021
Share Capital
Share premium redemption Merger Accumulated Total
capital account reserve reserve losses Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- ----------- -------- ------------ --------
As at 1 April 2020 318 97,890 40,294 2,223 (127,502) 13,223
Exercise of employee
share options 1 14 - - - 15
Credit on share-based
payment - - - - 483 483
Loss and total comprehensive
loss for the period - - - - (7,092) (7,092)
As at 30 September
2020 319 97,904 40,294 2,223 (134,111) 6,629
Issue of share capital 250 17,229 - - - 17,479
Transaction costs - (1,237) - - - (1,237)
Exercise of employee
share options - 8 - - - 8
Credit on share-based
payment - - - - 281 281
Loss and total comprehensive
loss for the period - - - - (4,255) (4,255)
As at 31 March 2021 569 113,904 40,294 2,223 (138,085) 18,905
Exercise of employee
share options - 21 - - - 21
Credit on share-based
payment - - - - 461 461
Loss and total comprehensive
loss for the period - - - - (5,234) (5,234)
As at 30 September
2021 569 113,925 40,294 2,223 (142,858) 14,153
------------------------------ -------- -------- ----------- -------- ------------ --------
Unaudited Consolidated Statement of Cash Flows
for the six months ended 30 September 2021
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2021 2020 2021
Note GBP'000 GBP'000 GBP'000
-------------------------------- ----- ------------- ------------- -----------
Cash flows from operating
activities
Cash used in operations 13 (4,578) (5,493) (12,075)
Overseas taxes paid (3) (3) (5)
Income tax credit received - 2,926 6,061
Interest paid (18) (18) (33)
Net cash used in operating
activities (4,599) (2,588) (6,052)
Cash flows from investing
activities
Capital expenditure (238) (3) (25)
Interest received 3 23 27
------------- ------------- -----------
Net cash (used in)/generated
by investing activities (235) 20 2
Cash flows from financing
activities
Proceeds from the issue of
ordinary shares 21 15 17,502
Transaction costs - - (1,237)
Bank deposits matured/(placed) 1,500 - (7,500)
Lease payments (84) (79) (154)
Net cash generated by/(used
in) financing activities 1,437 (64) 8,611
-------------------------------- ----- ------------- ------------- -----------
Net (decrease)/increase in
cash and cash equivalents 14 (3,397) (2,632) 2,561
Effect of foreign exchange
rates 112 (225) (483)
Cash and cash equivalents
at the start of period 14,703 12,625 12,625
Cash and cash equivalents
at the end of period 15 11,418 9,768 14,703
-------------------------------- ----- ------------- ------------- -----------
Notes to the Interim Financial Statements
for the six months ended 30 September 2021
1. General information and basis of preparation
ReNeuron Group plc is an AIM listed company incorporated and
domiciled in the United Kingdom under the Companies Act 2006. The
Company's registered office and its principal place of business is
Pencoed Business Park, Pencoed, Bridgend CF35 5HY. Its shares are
listed on the Alternative Investment Market ("AIM") of the London
Stock Exchange.
These Interim Financial Statements were prepared by the
Directors and approved for issue on 30 November 2021. They have not
been audited.
These Interim Financial Statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 March 2021 were
approved by the Board of Directors on 6 August 2021 and delivered
to the Registrar of Companies. The report of the auditors on those
accounts was unqualified and did not contain statements under 498
(2) or (3) of the Companies Act 2006.
As permitted, these Interim Financial Statements have been
prepared in accordance with UK AIM rules and with International
Accounting Standard 34 "Interim financial reporting". They should
be read in conjunction with the Annual Financial Statements for the
year ended 31 March 2021, which have been prepared in accordance
with International Accounting Standards in conformity with the
Companies Act 2006 (IFRS) and the applicable legal requirements of
the Companies Act 2006.
2. Accounting policies
The accounting policies applied are consistent with those of the
Annual Financial Statements for the year ended 31 March 2021, as
described in those Annual Financial Statements. Where new standards
or amendments to existing standards have become effective during
the year, there has been no material impact on the net assets or
results of the Group.
3. Going concern
The Group is expected to incur significant further costs as it
continues to develop its therapies and technologies through
clinical development. The operations of the Group are currently
being financed from funds that have been raised from share
placings, commercial partnerships and grants.
The Group actively seeks further business development and
fundraising opportunities in order to support its ongoing
development programmes. The Board places considerable emphasis on
communication with shareholders, potential investors and other
commercial organisations in order to maximise the chances of
success in exploiting these opportunities. The Group had cash, cash
equivalents and bank deposits totalling GBP17.4 million at half
year (31 March 2021: GBP22.2 million).
Based on the above and taking into consideration that certain of
the forecast costs within the next 12 months are within the control
of the Group, the Directors expect that the Group's current
financial resources will be sufficient to support operations for at
least the next 12 months from the date of these financial
statements and the Directors are continually reviewing options to
secure further funding to finance the future needs of the business.
The Group therefore continues to adopt the going concern basis in
the preparation of these financial statements.
4. Revenue
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Royalty income 58 41 89
Income incidental to development activities - - 168
-------------------------------------------- ------------ ------------- -----------
58 41 257
-------------------------------------------- ------------ ------------- -----------
Royalty income is derived from the licensed sale of the Group's
products to customers in the USA.
Income incidental to development activities relates to fees
received under research agreements.
5. Segment information
The Group has identified the Chief Executive Officer as the
Chief Operating Decision Maker (CODM). The CODM manages the
business as one segment, the development of cell-based therapies.
Since this is the only reporting segment, no further information is
included. The information used internally by the CODM is the same
as that disclosed in the Interim Financial Statements. The Group's
revenue derives wholly from assets located in the United Kingdom.
Revenue is analysed in note 4 above. Analysed by location of
customer all royalty income is derived from the United States of
America.
6. Other operating income
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Government grants - 78 78
------------------ ------------ ------------- -----------
In the prior period, GBP78,000 was received under the
Government's Coronavirus Job Retention Scheme.
7. Finance income
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
----------------------- ------------ ------------- -----------
Interest received 12 16 20
Foreign exchange gains 112 - -
----------------------- ------------ ------------- -----------
124 16 20
----------------------- ------------ ------------- -----------
8. Finance expense
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
------------------------ ------------ ------------- -----------
Lease interest 18 18 32
Foreign exchange losses - 225 484
------------------------ ------------ ------------- -----------
18 243 516
------------------------ ------------ ------------- -----------
9. Taxation
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
----------------- ------------ ------------- -----------
R & D tax credit 733 878 2,068
Foreign taxation (3) (3) (5)
730 875 2,063
----------------- ------------ ------------- -----------
10. Basic and diluted loss per share
The basic and diluted loss per share is calculated by dividing
the loss for the financial period of GBP5,234,000 (September 2020:
GBP7,092,000, March 2021: GBP11,347,000) by 56,907,676 shares
(September 2020: 31,846,537 and March 2021: 39,128,925 shares),
being the weighted average number of ordinary 1p shares in issue
during the period. Potential ordinary shares are not treated as
dilutive as the entity is loss-making.
11. Right-of-use-asset
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
--------------------------- ------------ ------------- ---------
At beginning of the period 473 591 591
Additions - - -
Depreciation charge (50) (62) (118)
At end of the period 423 529 473
--------------------------- ------------ ------------- ---------
The net book value of the underlying assets is as follows:
30 September 30 September 31 March
2021 2020 2020
(124)461 GBP'000 GBP'000 GBP'000
------------------------------ ------------ ------------- ---------
Land and buildings 421 516 469
Computer and office equipment 2 13 4
At end of the period 423 529 473
------------------------------ ------------ ------------- ---------
12. Share capital and share premium
Number Share Share premium Total
of shares capital
GBP'000 GBP'000 GBP'000
----------------------------- ---------- --------- ------------- -------
As at 30 September 2020 31,874,324 319 97,904 98,223
Issue of new shares - equity
fund raising 24,970,381 250 17,229 17,479
Transaction costs - - (1,237) (1,237)
Issue of new shares - share
options exercised 11,000 - 8 8
----------------------------- ---------- --------- ------------- -------
As at 31 March 2021 56,855,705 569 113,904 114,473
Issue of new shares - share
options exercised 80,697 - 21 21
As at 30 September 2021 56,936,402 569 113,925 114,494
----------------------------- ---------- --------- ------------- -------
13. Cash used in operations
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------- -----------
Loss before income tax (5,964) (7,967) (13,410)
Adjustment for:
Finance income (124) (16) (20)
Finance expense 18 243 516
Depreciation of property, plant and
equipment 126 141 262
Depreciation of right-of-use asset 50 62 118
Loss on disposal of fixed assets - - 2
Share-based payment charges 461 483 764
Changes in working capital:
Receivables (64) (146) 245
Payables 919 1,707 (552)
-------------------------------------- ------------ ------------- -----------
Cash used in operations (4,578) (5,493) (12,075)
-------------------------------------- ------------ ------------- -----------
14. Reconciliation of net cash flow to movement in net debt
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------ ------------- -----------
Decrease in cash and cash equivalents (3,397) (2,632) 2,561
Effect of foreign exchange rates 112 (225) (484)
Lease repayments 102 97 187
Lease interest (18) (18) (32)
Net funds at start of period 13,984 11,752 11,752
Net funds at end of period 10,783 8,974 13,984
-------------------------------------- ------------ ------------- -----------
15. Analysis of net funds
Six months Six months
Ended Ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
-------------------------- ------------ ------------- -----------
Cash and cash equivalents 11,418 9,768 14,703
Lease liabilities (635) (794) (719)
Net funds 10,783 8,974 13,984
-------------------------- ------------ ------------- -----------
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END
IR FLFVTLSLAFIL
(END) Dow Jones Newswires
November 30, 2021 02:00 ET (07:00 GMT)
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