TIDMPRM
RNS Number : 4019K
Proteome Sciences PLC
25 August 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation.
25 August 2023
Proteome Sciences plc
("Proteome Sciences" or the "Company")
Interim results for the six months ended 30 June 2023
Proteome Sciences announces its unaudited interim results for
the six months ended 30 June 2023.
Financial highlights:
-- Proteomics services revenues GBP1.01m (H1 2022: GBP0.85m)
-- TMT(R) reagent sales and royalties GBP2.20m (H1 2022: GBP2.39m)
-- Total revenues GBP3.21m (H1 2022: GBP3.24m)
-- Gross profit GBP1.77m (H1 2022: GBP1.80m)
-- Cost of sale and administrative costs GBP3.37m (H1 2022: GBP2.98m)
-- Adjusted EBITDA** GBP0.27m (H1 2022: GBP0.64m)
Commenting on these results, Dr. Mariola Soehngen, Chief
Executive Officer of Proteome Sciences, said:
"Our revenues from TMT (R) and TMTpro(TM) reagents continue to
be the most significant source of income.
TMT sales were GBP1.45m in H1 2023 compared to GBP1.45m in H1
2022. Royalties were GBP0.75m in H1 2023 compared to GBP0.94m in H1
2022, a decline of 20% mainly due to the adjustment in royalty rate
under the exclusive licence and distribution agreement with Thermo
Scientific after the expiration of the earliest TMT patent.
Our service business started 2023 with a strong order book and
large bank of samples. We report another strong first half with
service revenues up 19% over the same period in 2022, despite the
macroeconomic challenges which have hit the markets in general and
our industry. We remain confident to deliver further growth in the
second half of the year in our service business.
Over the last 3 months we have steadily increased performance
and consistency of our SysQuant(R) SCP workflow for single cell
proteomics. We are now measuring over 1,100 proteins per cell and
can process over 500 cells per experiment, revealing differences in
disease processes and treatment response that will empower new
approaches in drug development. Final preparations for launch of
the SysQuant(R) SCP are underway and we are already experiencing
strong customer interest.
In the life cycle management of our TMT(R) reagents we have run
a program to extend the TMTpro(TM) multiplexing rate to 32. Initial
testing has been positive and we are progressing well with
manufacturing of the 14 additional tags that combine with the
existing 18plex reagents. We are also working on a first generation
of new isotopic tags for use in multiplexed data-independent
acquisition ("plexDIA"). We have a sixplex product manufactured and
are completing proof of concept studies in partnership with
external collaborators. We are also actively progressing licensing
discussions and expect to launch them shortly with a strong
distribution partner.
Earlier this year we took an important step in growing our
business, with the announcement that we intend to open a US lab in
the fourth quarter of this year. Whilst we already have an
excellent customer base in the US, concerns over shipping costs,
timing delays and customs delays have restricted the volume of
orders that could be processed. We will now be able to provide a
more accessible service to the rapidly growing pharma/biotech
community across the US as the demand for proteomics services
continues to expand. We are looking forward to launching our
improved service to the US marketplace with the opening of the San
Diego facility later this year.
In May 2023, due to the strong cash position, the Company repaid
in full the outstanding loan and associated interest (together
totalling GBP824,424) to Vulpes Investment Management Private
Limited.
We continue to make strategic investments in new equipment, new
technology (SysQuant(R) SCP) and additional staff - both in Europe
and the US subsidiary - and we are confident that these should be
well reflected in the future growth of our business."
**Adjusted EBITDA (a non-GAAP company specific measure which is
considered to be a key performance indicator of the Group's
financial performance).
For further information:
Proteome Sciences plc
Dr Mariola Soehngen, Chief Executive Officer Tel: +44 (0)20 7043
2116
Dr Ian Pike, Chief Scientific Officer
Richard Dennis, Chief Commercial Officer
Abdelghani Omari, Chief Financial Officer
Allenby Capital Limited (AIM Nominated Adviser & Broker)
John Depasquale / Jeremy Porter (Corporate Tel: +44 (0) 20 3328
Finance) 5656
Tony Quirke / Stefano Aquilino (Equity Sales
& Corporate Broking)
About Proteome Sciences plc. ( www.proteomics.com )
Proteome Sciences plc is a specialist provider of contract
proteomics services to enable drug discovery, development and
biomarker identification, and employs proprietary workflows for the
optimum analysis of tissues, cells and body fluids. SysQuant(R) and
TMT(R) MS2 are unbiased methods for identifying and contextualising
new targets and defining mechanisms of biological activity, while
analysis using Super-Depletion and TMTcalibrator(TM) provides
access to over 8,500 circulating plasma proteins for the discovery
of disease-related biomarkers. Targeted assay development using
mass spectrometry delivers high sensitivity, interference-free
biomarker analyses in situations where standard ELISA assays are
not available.
The Company has its headquarters in Cobham, UK, with laboratory
facilities in Frankfurt, Germany and San Diego, US.
Chief Executive Officer's Report
Services
Revenues from the proteomics services business increased 19% in
the first half of 2023 to GBP1.01m (H1 2022: GBP0.85m) reflecting
the strong order book and banked samples we carried forward from
2022. We expect high demand for the service business extending into
the second half of 2023.
News on the opening of our US laboratory in San Diego has been
very well received by US biopharma and has initiated new
discussions on projects that either need to be undertaken in the
US, or where local analyses of samples is preferred. We anticipate
a number of orders coming to fruition by the time the laboratory is
open later this year.
Interest in our Single Cell Proteomics services is strong and
discussions with several biopharma accounts have been progressing
well, with orders anticipated to arrive over the summer as we move
to the commercial launch of this new service soon.
With the introduction of the US laboratory and Single Cell
Proteomics, we remain active in trade shows and external seminars
to broaden further our outreach and customer base.
TMT (R)
Revenues from sales of TMT(R) and TMTpro(TM) reagents and
royalties were GBP2.20m compared to GBP2.39m in the prior-year
period, a decline of 8%. This reflects a small adjustment in
royalties to sub-licensing revenue which totalled GBP0.75m in H1
2023 (H1 2022: GBP0.94m) following the final expiry of the earliest
TMT patents. We have ongoing patents running to the mid 2030's in
respect of the TMTpro(TM) reagents and no further reduction of the
royalty rate on these products is expected. Sales of tags remained
level during the period at GBP1.45m (H1 2022: GBP1.45m). We are
seeing some volatility in the market with label-free methods but
this is anticipated to be offset by growth in the number and value
of commercial sub-licensees using TMT(R) /TMTpro(TM) products in
their commercial services.
Outlook
The board is confident of maintaining the good performance into
the second half of the year. TMT revenues remain strong and we have
good dynamic in the order generation of our service business. The
launch of SysQuant(R) SCP and the setting up of our US lab are
important investments and we expect these to provide a good basis
for further growth of the business.
Dr. Mariola Soehngen
Chief Executive Officer
25 August 2023
Chief Financial Officer's Report
Revenues in the first half of 2023 were 1% lower at GBP3.21m
compared to the equivalent period in 2022 (GBP3.24m), TMT(R) and
TMTpro(TM) sales were flat year-over-year and amounted to GBP1.45m
(H1 2022: GBP1.45m) and TMT(R) r oyalties were GBP0.75m in H1 2023
compared to GBP0.94m in H1 2022, a decline of 20% mainly due to a
reduced royalty rate under the exclusive licence and distribution
agreement with Thermo Scientific after the expiration of the
earliest TMT patent. Proteomics service revenues increased 19% to
GBP1.01m (H1 2022: GBP0.85m).
Costs of sales and administrative expenses increased by 13% to
GBP3.37m (30 June 2022: GBP2.98m). Major cost drivers included
higher spent on production materials, higher travel and patent
costs and exchange rate losses. Financing costs for the first half
increased to GBP0.38m in comparison with GBP0.19m in the previous
period due to increases of interest rates by the Bank of
England.
Adjusted EBITDA** decreased to GBP0.27m (H1 2022: GBP0.64m),
which is primarily attributable to flat revenues and higher
costs.
The Company has generated GBP0.92m cashflow from operating
activities in H1 2023. In May 2023, the Company repaid in full the
outstanding loan and associated interest (together totalling
GBP824,424) to Vulpes
Investment Management Private Limited. As at 30 June 2023 the
Group had cash resources of GBP3.79m (30 June 2022: GBP3.20m).
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
GBP'000 GBP'000
Continuing operations
Revenue 3,210 3,243
Gross Profit 1,767 1,802
Administrative Expenses * (1,930) (1,535)
Operating Profit (163) 267
------------------------------------ -------- --------
Depreciation 289 259
------------------------------------ -------- --------
EBITDA 126 526
------------------------------------ -------- --------
Non-cash item: share based payment
expenses 143 118
Adjusted EBITDA ** 269 644
* Administrative expenses include depreciation
**Adjusted EBITDA (a non-GAAP company specific measure which is
considered to be a key performance indicator of the Group's
financial performance).
Abdelghani Omari
Chief Financial Officer
25 August 2023
Consolidated income statement
For the six months ended 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
Note GBP'000 GBP'000
Continuing operations
Revenue
Licences, sales & services 3,210 3,243
Cost of sales (1,443) (1,441)
------------------------------- -------- --------
Gross profit 1,767 1,802
Administrative expenses (1,930) (1,535)
Operating (loss)/profit (163) 267
Finance costs (384) (192)
------------------------------- -------- --------
(Loss)/profit before taxation (547) 75
Tax (31) (12)
------------------------------- -------- --------
(Loss)/profit for the period (578) 63
------------------------------- -------- --------
(Loss)/profit per share 2
Basic (0.20p) 0.02p
Diluted (0.20p) 0.02p
------------------------------- -------- --------
Consolidated statement of comprehensive income
For the six months ended 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
GBP'000 GBP'000
(Loss)/profit for the period (578) 63
Other comprehensive income for the period
Exchange differences on translation of foreign
operations (103) 50
------------------------------------------------- -------- -----
Total comprehensive (Expense)/income for
the period (681) 113
------------------------------------------------- -------- -----
Consolidated balance sheet
As at 30 June 2023
30 June 31 December
2023 2022
(unaudited) (audited)
GBP'000 GBP'000
Non-current assets
Goodwill 4,218 4,218
Property, plant and
equipment 411 444
Right-of-use asset 645 873
--------------------------------- ----- -------------- -------------
5,274 5,535
--------------------------------- ----- -------------- -------------
Current assets
Inventories 912 901
Trade and other receivables 759 1,443
Contract assets 364 560
Cash and cash equivalents 3,787 3,994
--------------------------------- ----- -------------- -------------
5,822 6,898
--------------------------------- ----- -------------- -------------
Total assets 11,096 12,433
--------------------------------- ----- -------------- -------------
Current liabilities
Trade and other payables (648) (823)
Contract liabilities (104) (104)
Borrowings (10,809) (11,262)
Lease Liabilities (283) (300)
--------------------------------- ----- -------------- -------------
(11,844) (12,489)
--------------------------------- ----- -------------- -------------
Net current liabilities (6,022) (5,591)
--------------------------------- ----- -------------- -------------
Non-current liabilities
Lease liabilities (197) (353)
Pension Provisions (436) (434)
--------------------------------- ----- -------------- -------------
Total non-current
liabilities (633) (787)
--------------------------------- ----- -------------- -------------
Total liabilities (12,477) (13,276)
--------------------------------- ----- -------------- -------------
Net liabilities (1,381) (843)
--------------------------------- ----- -------------- -------------
Equity
Share capital 2,952 2,952
Share premium account 51,466 51,466
Share-based payment
reserve 4,639 4,495
Merger reserve 10,755 10,755
Translation and others
reserve (124) 31
Retained loss (71,069) (70,542)
--------------------------------- ----- -------------- -------------
Total shareholders
deficit (1,381) (843)
--------------------------------- ----- -------------- -------------
Consolidated cash flow statement
For the six months to 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
GBP'000 GBP'000
(Loss)/profit after tax (578) 63
Adjustments for:
Net finance costs 384 192
288 259
Depreciation of property, plant and equipment and right of use assets
Tax charge /(credit) 31 12
Share-based payment expense 143 118
----------------------------------------------------------------------- -------- --------
Operating cash flows before movements in working capital 268 644
(Increase)/decrease in inventories (11) 50
Decrease/(increase) in receivables 879 (333)
Decrease/(increase)in payables (188) 668
Increase in provisions 3 27
----------------------------------------------------------------------- -------- --------
Cash generated from operations 951 1,056
Tax paid (31) (12)
----------------------------------------------------------------------- -------- --------
Net cash Inflow from operating activities 920 1,044
----------------------------------------------------------------------- -------- --------
Cash flows from investing activities
Purchases of property, plant and equipment (27) (84)
Net cash outflow from investing activities (27) (84)
----------------------------------------------------------------------- -------- --------
Financing activities
Lease payments (173) (198)
Loan repayment (824) -
----------------------------------------------------------------------- -------- --------
Net cash outflow from financing activities (997) (198)
----------------------------------------------------------------------- -------- --------
Net Increase/(decrease) in cash and cash equivalents (104) 762
Cash and cash equivalents at beginning of period 3,994 2,387
Effect of foreign exchange rate changes (103) 50
----------------------------------------------------------------------- -------- --------
Cash and cash equivalents at end of period 3,787 3,199
----------------------------------------------------------------------- -------- --------
Notes
For the six months to 30 June 2023
1 Basis of preparation and accounting policies
These interim consolidated financial statements have been
prepared using accounting policies based on UK adopted
International Accounting Standards and Interpretations in
conformity with the requirements of the Companies Act 2006. They do
not include all disclosures that would otherwise be required in a
complete set of financial statements and should be read in
conjunction with the 31 December 2022 Annual Report. The financial
information for the half years ended 30 June 2022 and 30 June 2023
does not constitute statutory accounts within the meaning of
Section 434 (3) of the Companies Act 2006 and both periods are
unaudited.
The annual financial statements of Proteome Sciences plc ('the
Group') are prepared in accordance with UK adopted International
Accounting Standards and Interpretations in conformity with the
requirements of the Companies Act 2006. The comparative financial
information included within this report does not constitute the
full statutory Annual Report for that period. The statutory Annual
Report and Financial Statements for 2022 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statements for the year ended 31
December 2022 was unqualified.
The directors have concluded that the Group has adequate
resources to continue operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis
in preparing the half-yearly consolidated financial statements.
Proteome Sciences plc has applied the same accounting policies
and methods of computation in its interim consolidated financial
statements as in its 2022 annual financial statements.
There have been no new standards adopted since the presentation
of the financial statements for 2022.
The Board of Directors approved this interim report on 25 August
2023.
2. Loss/(profit) per share from continuing operations
Six months Six months
ended ended
30 June 30 June
2023 2022
(unaudited) (unaudited)
Loss/(profit) per share
Loss/(profit) for the purpose
of basic profit/loss per share
being net profit/loss attributable
to equity holders of the parent
(GBP'000) (578) 63
----------------------------------------- -------------- --- --------------
Number of shares
Weighted average number of
ordinary shares for the purpose
of basic loss per share 295,182,056 295,182,056
------------------------------------------ -------------- --- ---------------
Weighted average number of
ordinary shares for the purpose
of diluted loss per share 309,593,135 306,020,097
------------------------------------------ -------------- --- ---------------
3. Cautionary statement
This document contains certain forward-looking statements
relating to Proteome Sciences plc ('the Group'). The Group
considers any statements that are not historical facts as
"forward-looking statements". They relate to events and trends that
are subject to risk and uncertainty that may cause actual results
and the financial performance of the Group to differ materially
from those contained in any forward-looking statement. These
statements are made by the directors in good faith based on
information available to them and such statements should be treated
with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such
forward-looking information.
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END
IR SEAFALEDSEFA
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