TIDMSAR
RNS Number : 6726R
Sareum Holdings PLC
04 March 2019
(AIM:SAR) 4 March 2019
SAREUM HOLDINGS PLC
("Sareum" or "the Company")
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 31 DECEMBER 2018
This announcement contains inside information for the purposes
of Article 7 of regulation 596/2014
Sareum Holdings plc (AIM: SAR), the specialist cancer drug
discovery and development business, announces its half-yearly
results for the six months ended 31 December 2018 and provides an
update of significant post-period events.
Operational highlights
-- Sierra Oncology ("Sierra"), the licence holder of SRA737,
continues to advance and refine its clinical development programmes
in patients with late-stage cancer. SRA737 is a small molecule Chk1
inhibitor discovered by Sareum and Cancer Research UK/Institute of
Cancer Research. In the period:
o Phase 1/2 monotherapy trial in genetically defined patients
was expanded and prioritised for high-grade serous ovarian cancer
(HGSOC) - Phase 2 cohort expansion underway
o The prioritisation for HGSOC patients was based on emerging
clinical data providing validation for Chk1 inhibition in this
indication, and particularly in patients with CCNE1-driven disease.
Further supportive preclinical data was also presented at the 30th
EORTC-NCI-AACR Symposium in November
o Phase 1/2 study of SRA737 in combination with low-dose
gemcitabine (LDG) was also prioritised for HGSOC - Phase 2 cohort
expansion underway
o Promising preclinical data highlighting the synergy and
combination potential of SRA737 and an immune checkpoint inhibitor
in small cell lung cancer (SCLC) was presented at the AACR
Conference on Tumour Immunology in November
-- Sareum initiated formal preclinical development with two
distinct molecules selected from its proprietary TYK2/JAK1
programme. Both molecules demonstrate high selectivity for TYK2 and
JAK1 kinases (particularly over related JAK2 and JAK3), compelling
activity in relevant disease models, the potential for once-daily
oral dosing and a good early safety profile
o SDC-1801 targeting autoimmune diseases
o SDC-1802 targeting certain types of leukaemia, lymphoma and
solid tumours
-- Board of Directors strengthened with appointments of Dr
Michael Owen and Clive Birch as Non-Executive Directors, bringing
significant experience in the development of innovative
biopharmaceutical products and in financial management and
corporate governance
Post-period end
-- In January 2019, Sierra provided an update on its preclinical
development programme with SRA737, highlighting the therapeutic
benefits of combining Chk1 and PARP inhibitors in tumours that have
become resistant to PARPi drugs at the DNA Damage Response
Therapeutics conference
-- In February 2019, Sierra announced that data demonstrating
the dramatically enhanced anti-tumour effect of combining
anti-PD-L1 immunotherapy with SRA737 + LDG in a preclinical model
of small cell lung cancer had been selected as a late-breaking
abstract for oral presentation at the forthcoming Amercian
Association of Cancer Research (AACR) Annual Meeting
Financial highlights
-- In November, Sareum raised GBP850,000 before expenses through
a placement of 130,769,231 new ordinary shares at 0.65p per share
to progress its drug development programmes as well as for working
capital purposes
-- Loss on ordinary activities (after taxation) of GBP764,000 (2017: loss of GBP722,000)
-- Cash at bank as at 31 December 2018 was GBP1,542,000 (2017: GBP2,165,000)
Dr Tim Mitchell, CEO of Sareum Holdings plc, said: "We are very
pleased with the progress that Sierra has made advancing its
clinical programmes with SRA737 in recent months and we look
forward to seeing preliminary data from these trials, expected in
the first half of 2019. We are also encouraged by the preclinical
work that Sierra and co-workers are conducting to support Chk1
inhibition by SRA737 as an attractive mechanism in combination with
other leading cancer drug classes, including immuno-oncology drugs
and PARP inhibitors.
"With regard to our proprietary programmes, the selection of
SDC-1801 and SDC-1802 as preclinical candidates were important
achievements and both are now advancing through preclinical
programmes with a view to entering clinical trials in 2020. We
believe that these compounds have excellent qualities and target a
mechanism that is gaining credibility and generating growing
interest in the pharmaceutical industry. Advancing these two
programmes as quickly and as rigorously as possible is the focus of
all our current resources and we are convinced that they offer the
potential to generate significant value for shareholders."
Sareum Holdings plc
Tim Mitchell 01223 497 700
WH Ireland Limited (Nominated Adviser)
Chris Fielding / James Sinclair-Ford 020 7220 1666
Hybridan LLP (Nominated Broker)
Claire Noyce 020 3764 2341
Citigate Dewe Rogerson (Media enquiries)
Shabnam Bashir/ Mark Swallow/ David
Dible 020 7638 9571
Notes for editors:
Sareum is a specialist drug development company delivering
targeted small molecule therapeutics, to improve the treatment of
cancer and autoimmune disease. The Company generates value through
licensing its candidates to international pharmaceutical and
biotechnology companies at the preclinical or early clinical trials
stage.
Sareum's leading clinical-stage programme, SRA737, a novel
Checkpoint kinase 1 (Chk1) inhibitor licensed to NASDAQ-listed
Sierra Oncology, is in Phase 2 clinical trials targeting ovarian
and other advanced cancers. The key role of Chk1 in cancer cell
replication and DNA damage repair suggests that SRA737 may have
broad application as a targeted therapy in combination with other
oncology and immune-oncology drugs in genetically defined
patients.
Sareum is also advancing internal programmes focused on distinct
dual tyrosine kinase 2 (TYK2) /Janus kinase 1 (JAK1) inhibitors
through preclinical development as therapies for autoimmune
diseases (SDC-1801) and cancers (SDC-1802). TYK2 and JAK1 have
roles in pro-inflammatory responses in autoimmune diseases (e.g.
psoriasis, rheumatoid arthritis, inflammatory bowel diseases and
lupus) and tumour cell proliferation in certain cancers (e.g.
T-cell acute lymphoblastic leukaemia and some solid tumours). The
Company is targeting first human clinical trials in each indication
in 2020.
The Company also has an Aurora+FLT3 inhibitor targeting
haematological cancers, which is at the preclinical development
stage.
Sareum Holdings plc is listed on the AIM market of the London
Stock Exchange, trading under the ticker SAR. For further
information, please visit www.sareum.co.uk
Half-yearly results for the six months ended 31 December
2018
Chairman's and CEO's Statement
The second half of 2018 saw encouraging progress across our
active development portfolio, which comprises SRA737 (out-licensed
to Sierra Oncology), SDC-1801 and SDC-1802. These potent and
selective small molecules target important mechanisms in cancer and
autoimmune diseases and provide high-value opportunities to develop
new therapies for patients.
With SRA737, we continue to see good progress made by Sierra
Oncology, which is employing a cutting-edge approach to the trials,
enabling their refinement as new data emerge. Based on this, Sierra
has prioritised SRA737 development on high-grade serous ovarian
cancer ("HGSOC") as it gains further insights to which indications
and against which genetic profiles a Chk1 inhibitor has greatest
potential to be effective. Sierra has indicated that it will look
to present preliminary data from these trials in the first half of
2019, possibly at the American Society of Clinical Oncology (ASCO)
annual meeting in late May/early June 2019.
Sierra is also accumulating compelling preclinical evidence to
support the use of SRA737 in combination with other leading cancer
drug classes, including immuno-oncology drugs and PARP inhibitors.
Sierra is planning a clinical trial combining SRA737 with the
approved PARP inhibitor Zejula(R) niraparib in prostate cancer,
although a definitive timeline has not yet been stated.
Sierra remains well funded to deliver key clinical development
milestones with SRA737 through 2020, with approximately $106
million cash (as at the end of December 2018). Sareum is eligible
to receive up to $88 million in milestone payments, plus sales
royalties as SRA737 advances over the coming years.
Turning to our proprietary assets, we were delighted to nominate
two distinct development candidates for autoimmune diseases
(SDC-1801) and cancer (SDC-1802) from our TYK2/JAK1 programme
during the second half of 2018. The potential of TYK2/JAK1
inhibitors as a treatment modality in these indications is gaining
increasing clinical and commercial validation and the Board
believes that the Company is entering these areas with strong and
well-differentiated candidates.
We have commenced formal preclinical programmes for each
compound with a view to entering the clinic in each of the selected
therapy areas in 2020. Additional research is ongoing to refine the
clinical plans. In the meantime, the data arising from some of the
work leading to the compound selection are being prepared for
submission to a peer-reviewed publication and a conference
presentation.
In line with our business model, we continue to engage with
potential partners with a view to securing commercial licences for
our candidates and programmes.
From a corporate perspective, we have expanded and strengthened
our Board of Directors with two new Non-Executive Directors, Dr
Mike Owen and Mr Clive Birch, whose exceptional experience in areas
of direct relevance to the company will support our future
development.
Programme updates
SRA737 - Selective Checkpoint Kinase 1 (Chk1) inhibitor
(licensed to Sierra Oncology)
SRA737 is a potent, highly selective, orally bioavailable small
molecule inhibitor of Chk1, a key regulator of important cell cycle
checkpoints and central mediator of the DNA Damage Response (DDR)
network. SRA737 was licensed to Sierra in September 2016 for
development and commercialisation, with Sareum eligible to receive
up to $90M in up-front and milestone payments plus sales
royalties.
SRA737 is being investigated by Sierra in a clinical development
programme targeting cancer patients with genetically defined
tumours that harbour genomic alterations linked to increased DNA
replication stress and hypothesised to be more sensitive to Chk1
inhibition. A substantial number of patients have been enrolled
into the two ongoing clinical trials and Sierra remains on track to
report clinical data from these studies in the first half of
2019.
Phase 1/2 SRA737 Monotherapy Trial (SRA737-01)
Sierra announced in August 2018 that it had refined the
monotherapy study to prioritise high-grade serous ovarian cancer
(HGSOC), supported by emerging data in the field that provides
clinical validation for Chk1 inhibition in this indication. The
trial is now aiming to evaluate SRA737 in 145 genetically defined
patients in six cancer indications and is recruiting patients at a
planned 15 sites across the UK.
The target indications are:
-- High-grade serous ovarian cancer (HGSOC)
-- CCNE1-driven HGSOC
-- Castration-resistant prostate cancer (mCRPC)
-- Non-small cell lung cancer (NSCLC)
-- Head and neck squamous cell carcinoma (HNSCC) or squamous cell carcinoma of the anus (SCCA)
-- Colorectal cancer (mCRC)
The dose-escalation Phase 1 study is complete with SRA737 found
to be well tolerated at the selected dose. The Phase 2 cohort
expansion is underway with preliminary data now expected to be
reported in the first half of 2019, potentially at ASCO in late
May/early June 2019.
New preclinical data, presented in November at the 30(th)
EORTC-NCI-AACR Symposium, provided further evidence that SRA737 has
potential in HGSOC where the tumours exhibit defective cell cycle
checkpoint control and replicative stress, and are identifiable by
biomarkers such as CCNE1 and MYCN. The data also support the
exploration of drug combinations including SRA737 with other
compounds such as low dose gemcitabine (LDG) and PARP
inhibitors.
Phase 1/2 study of SRA737 in combination with low-dose
gemcitabine (SRA737-02)
The combination study is underway in genetically defined
patients in four cancer indications and aims to explore the effect
of LDG in potentiating the anti-tumour effect of SRA737 in patients
with genetically profiled cancers. It is hypothesised that, at low
doses, the chemotherapy gemcitabine causes replication stress and
DNA damage, making the tumours more susceptible to Chk1
inhibition.
The Phase 1 dose-escalation phase of the study is complete with
the SRA737+LDG combination being well tolerated at the doses
selected. The Phase 2 cohort expansion portion is now underway. As
with the monotherapy study, Sierra has prioritised recruitment for
HGSOC. The cohort expansion phase, currently recruiting patients
across 19 sites in the UK and Spain, is targeting enrolment of 80
genetically selected patients across four indications, including
advanced or metastatic:
-- HGSOC (replacing urothelial carcinoma);
-- Small cell lung cancer (SCLC);
-- Soft tissue sarcoma; and
-- Cervical/anogenital cancer
Again, due to the refinements made to the Phase 2 part of the
study, preliminary data are now expected to be reported by Sierra
in the first half of 2019.
Phase 1b/2 Combination Trial of SRA737 plus a PARP inhibitor
Sierra has stated it is planning a combination trial of SRA737
with the approved PARP inhibitor Zejula(R) niraparib (Tesaro) in
subjects with metastatic castration-resistant prostate cancer
(mCRPC). The trial is planned to take place in the UK led by
Professor Johann de Bono, a leading prostate cancer expert at The
Institute of Cancer Research and The Royal Marsden NHS Foundation
Trust in London. Definitive timelines for its initiation have not
been given (it was previously expected to begin in the fourth
quarter of 2018).
PARP inhibitors prevent the repair of DNA damage and several
have been approved as targeted treatments for cancer and other
indications, including Lynparza(R) olaparib (AstraZeneca),
Rubraca(R) rucaparib (Clovis Oncology) and Zejula(R). However,
intrinsic and acquired resistance to PARP inhibitors is emerging as
a serious clinical issue that diminishes their effect over
time.
Sierra believes that targeting components of the DNA damage
repair machinery such as Chk1 represents an attractive therapeutic
strategy. To support this approach, Sierra presented preclinical
data demonstrating SRA737's synergistic activity in combination
with a PARP inhibitor at the American Association of Cancer
Research (AACR) Annual Meeting (April 2018), the 30(th)
EORTC-NCI-AACR Symposium (November 2018), and more recently at the
DNA Damage Response (DDR) Therapeutics Summit (January 2019).
Combination of SRA737 with Immuno-Oncology Agents
Sierra is also investigating the possibility of combining SRA737
with immuno-oncology agents as a further opportunity.
Immuno-oncology agents, such as immune checkpoint inhibitors (e.g.
anti-PD1 and anti-PD-L1 therapies) represent a breakthrough
approach to cancer therapy by blocking the ability of the tumour
cell to evade recognition and attack by the immune system.
During 2018, Sierra presented preclinical data, including at the
AACR Conference of Tumor Immunology in November, demonstrating
biological synergy between SRA737 and immune checkpoint blockade.
At the AACR conference, SRA737 was shown to activate the STING
pathway (an anti-tumour immune response) and demonstrated a clear
anti-tumour effect in a model of small-cell lung cancer (SCLC).
Sierra is investigating this combination approach, with further
preclinical data expected to be presented in the first half of 2019
and a possible clinical study to follow pending the results.
In February 2019, Sierra announced that an abstract reporting
new preclinical data for SRA737+LDG in combination with anti PD-L1
immunotherapy has been selected for a late-breaking oral
presentation at the American Association of Cancer Research (AACR)
Annual Meeting (29 March to 3 April 2019). The data demonstrate a
striking immunomodulatory effect of SRA737 + LDG that results in
some of the most profound synergistic activity with anti-PD-L1
immunotherapy that has been observed in a preclinical model of
small cell lung cancer, a cancer that is usually non-responsive to
immunotherapy alone. The late-breaking abstract will be presented
by researchers at the MD Anderson Cancer Center (Houston, TX).
Sierra commented that these results provide a strong preclinical
rationale for the potential of a replication stress targeting
strategy to broaden the limited clinical efficacy of immunotherapy
observed in cancers such as SCLC.
Proprietary Pipeline - Selective TYK2/JAK1 Inhibitors in
Autoimmune Diseases and Cancer
The majority of Sareum's recent focus has been on undertaking
studies to enable the nomination of preclinical development
candidates from its TYK2/JAK1 programme with distinct profiles
optimised for development in autoimmune diseases and cancer.
TYK2 and JAK1 are members of the Janus Kinase (JAK) family of
protein kinase enzymes with important roles in maintaining a
healthy immune system. Both kinases have well-documented roles in
pro-inflammatory responses in autoimmune diseases and tumour cell
proliferation in certain cancers. Members of the JAK family are the
targets of several marketed and clinical-stage drugs in both
disease areas, although there are currently no marketed products
with specific selectivity for TYK2.
During September 2018, Sareum announced it had nominated
preclinical candidates from its programme in both autoimmune
diseases and cancers. In each case, the candidates, known as
SDC-1801 and SDC-1802, respectively, were selected from a novel
series of compounds designed and identified by Sareum following a
rigorous process, and demonstrate potentially best- or
first-in-class potential with the following characteristics:
-- Proprietary small molecules that are potent and selective for
TYK2 and JAK1 kinases (avoiding JAK2 and JAK3, which have known
negative side-effect issues)
-- Compelling activity in relevant disease models
-- Suitable for once or twice daily oral dosing
-- Good toxicological profile (in assays to date)
-- Straightforward synthesis
Both candidates have now entered preclinical development and
Sareum has prioritised its resources towards their progression
through this phase and towards first clinical studies, which are
targeted for 2020. The Company is developing its TYK2/JAK1
programmes with the intention of generating compelling preclinical
and potentially early clinical data, the basis of which will define
the timing and future development and partnering strategy for these
candidates.
In the meantime, the data arising from some of the work leading
to the compound selection are being prepared for submission to a
peer-reviewed publication and a conference presentation.
SDC-1801 - Autoimmune Diseases
SDC-1801 will undergo a series of toxicology and other
preclinical studies over the coming 12-18 months in preparation for
first human clinical trials in healthy volunteers. The molecule has
already shown compelling activity in disease models of psoriasis
and rheumatoid arthritis, while closely related molecules
(including a previously reported advanced lead, SAR-20347), have
also shown good activity in models of inflammatory bowel disease
and systemic lupus erythematosus (lupus).
Sareum believes SDC-1801 represents a strong candidate entering
an area of increasing industry interest with substantial clinical
validation. The Company's view has been formed based on the
progress of molecules in clinical development by Bristol-Myers
Squibb (BMS-986165; TYK2 inhibitor) and Pfizer (PF-06700841;
TYK2/JAK1 inhibitor) in psoriasis and other autoimmune diseases,
which has been promising but also shown signals that suggest there
is an opportunity for a molecule with best-in-class properties. The
Company has also become aware that Pfizer is planning to start a
randomised, 448-patient Phase 2b efficacy and safety trial with
PF-06700841 in lupus during Q2 2019, further highlighting interest
in the mechanism.
Furthermore, several licensing deals for preclinical and
clinical-stage assets have been completed recently in the sector
with highly attractive economic terms, such as:
-- TD-1473 (a pan-JAK inhibitor) - licensed by Janssen from
Theravance (2018) at the end of Phase 1 studies for $100M cash
up-front, up to $900M in milestone payments, plus royalties*
-- Filgotinib (JAK1 inhibitor) - licensed by Gilead from
Galapagos (2015) at the end of Phase 2 trials for $300M cash and
$425M equity investment up-front, up to $1,350M in milestone
payments, plus 20%+ royalties*
-- Undisclosed TYK2 inhibitor (plus other assets) - Celgene
formed an alliance with Nimbus Therapeutics (2017) in preclinical
stage for undisclosed up-front and milestone payments
Approved products targeting the JAK family with blockbuster
sales potential, despite warnings based on side effects related to
JAK2/JAK3 activity, include:
-- Xeljanz(R) tofacitinib (Pfizer) (JAK1/JAK3 inhibitor) -
approved for rheumatoid and psoriatic arthritis and ulcerative
colitis, with 2018 sales of $1.77Bn, despite black box warnings for
serious infections and lymphoma. More recently, dose-related
cardiac safety issues were reported in a post-marketing study in
rheumatoid arthritis patients
-- Olumiant(R) baricitinib (Eli Lilly) (JAK1/JAK2 inhibitor) -
approved for rheumatoid arthritis, with 2018 sales of $202.5
million and expected peak sales of approximately $1Bn*, but with
black box warnings for serious infections, lymphoma and
thrombosis
-- Jakafi(R) ruxolitinib (Incyte/Novartis) (JAK1/JAK2 inhibitor)
- approved for myelofibrosis and polycythemia vera (a type of blood
cancer) with 2018 sales of $1.4Bn despite warnings of infections
and blood cell counts
The scale of the deals and sales delivered/forecast for these
candidates and products targeting TYK2 and related JAK family
members give Sareum confidence in the exciting, high-value market
opportunity for SDC-1801.
*Sources include company information and analyst consensus as
reported in Bioworld Today "FDA approves Lilly and Incyte's
baricitinib for second-line RA treatments" (4 June 2018)
SDC-1802 - Cancer
As with SDC-1801, Sareum's preclinical candidate for cancer
indications is undergoing preclinical development in preparation
for human clinical studies, targeted for 2020.
In previous studies, Sareum has seen compelling activity of
SDC-1802 and related molecules in disease models of:
-- Blood cancers dependent on TYK2/STAT pathway signalling -
T-cell acute lymphoblastic leukaemia (T-ALL) and B-cell
lymphoma
-- Solid tumours dependent on TYK2-dependent interleukin signalling - kidney, colon cancers
-- Solid tumours via local immune system modulation - kidney, colon, pancreas, skin
The Company's findings across all these indications are also
supported by strong evidence in the literature.
Furthermore, the Company is continuing to study the effect of
combining TYK2/JAK1 inhibition with immune checkpoint inhibitors
and with chemotherapies, an area of considerable industry activity
and potential value.
Board of Directors strengthened
In November, Sareum appointed Michael Owen, PhD and Clive Birch
FCA as Non-Executive Directors. They bring significant experience
in the development of innovative product candidates and
technologies, and in financial management and corporate governance,
respectively. This experience and expertise is expected to be
highly valuable in guiding Sareum's future growth and strategy to
generate value for shareholders. In consequence of these
appointments, the company has established advisory committees of
the board to increase its compliance with QCA guidelines.
Dr Owen has worked in biomedical research, and in the
pharmaceutical and biotechnology industries for nearly 40 years in
a number of executive, board and advisory roles. He is the
co-founder and first Chief Scientific Officer of Kymab Ltd, a
biopharmaceutical company based in Cambridge, UK, prior to which he
worked for GSK as SVP and Head of Research for Biopharmaceuticals
R&D. He currently serves on the boards of several public and
private companies in UK, Europe and the US and has also advised
notable specialist life science investment firms such as Abingworth
LLP and the CRT Pioneer Fund.
Mr Birch is an Independent Non-Executive Director of Cambridge
Innovation Capital plc and a retired partner of
PricewaterhouseCoopers where, as head of the Cambridge office of
PwC, his role was that of an auditor and reporting accountant with
an industry specialism in technology and healthcare companies. He
was also part of the teams involved in fund raising and listing
those clients on various markets.
Financial review
Sareum ended the six-month period ended 31 December 2018 with
net assets of GBP1,675,000 (2017: GBP2,384,000) of which
GBP1,542,000 (2017: GBP2,165,000) comprised cash at bank, including
proceeds from a placement, which raised GBP850,000 before expenses
in November 2018 and an R&D tax credit of GBP252,000.
Operating expenses for the period have increased to GBP904,000
(2017: GBP822,000): this includes an increase in research
expenditure on our TYK2 autoimmune disease and cancer
programmes.
The loss on ordinary activities (after taxation) was GBP764,000
(2017: GBP722,000).
Outlook
The Directors are very pleased with the progress made across the
Company's programmes during the period: with SRA737, Sierra
Oncology remains strongly committed to and continues to invest in
the programme and expects to report preliminary clinical data and
further programme expansion in the coming year; and internally, the
Company expects to advance its lead candidates from the TYK2/JAK1
programme through formal preclinical development, targeting the
first human trials in 2020.
The Company's strategic goal with its internal programmes is to
generate compelling evidence for the potential of these candidates
in their respective disease areas to facilitate licensing
agreement, or agreements, at an optimal value. The Directors will
continue to review the potential higher value of a later-stage
licensing deal versus the requirement for any extra funding.
Meanwhile, Sareum continues to engage with potential partners
with a view to securing commercial licences for its proprietary
assets, while exploring new research programmes from its in-house
drug discovery platform, as well as external early stage
opportunities that can be potentially in-licensed and progressed
into the clinic.
From a financial perspective, the Company will continue to
employ rigorous capital management in the development of its
internal assets and its overall business.
Dr Stephen Parker Dr Tim Mitchell
Chairman, Sareum Holdings plc CEO, Sareum Holdings plc
1 March 2019 1 March 2019
Consolidated Income Statement for the six months ended 31
December 2018
Notes Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 18 31 Dec 17 30 Jun 18
GBP'000 GBP'000 GBP'000
Revenue - - -
Other operating income - - -
Operating expenses (904) (822) (1,710)
Share of (loss)/profit of
associates (5) (9) (12)
Operating (loss)/profit (909) (831) (1,722)
Finance income 2 1 4
------------
(Loss)/profit before tax (907) (830) (1,718)
Tax 3 143 108 249
------------ ------------ -----------
(Loss)/profit on ordinary
activities
after taxation (764) (722) (1,469)
------------ ------------ -----------
Basic and diluted loss per
share (pence) 5 0.03p 0.03p 0.05p
------------ ------------ -----------
Consolidated Statement of Comprehensive Income for the six
months ended
31 December 2018
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 18 31 Dec 17 30 Jun 18
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (764) (722) (1,469)
Other comprehensive income - - -
------------ ------------ -----------
Total comprehensive income for
the period (764) (722) (1,469)
------------ ------------ -----------
Total comprehensive income attributable
to:
Owners of the parent (764) (722) (1,469)
------------ ------------ -----------
Consolidated Balance Sheet as at 31 December 2018
Unaudited Unaudited Audited
As at As at As at
31 Dec 18 31 Dec 17 30 Jun 18
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 5 11 8
Investments in associates 37 45 41
-----------
42 56 49
-----------
Current assets
Debtors 65 178 138
Tax receivable 144 156 254
Cash and cash equivalents 1,542 2,165 1,375
----------- ----------- -----------
1,751 2,499 1,767
Creditors: amounts due
within one year (118) (171) (183)
----------- ----------- -----------
Net current assets 1,633 2,328 1,584
----------- ----------- -----------
Net assets 1,675 2,384 1,633
-----------
Equity
Called-up share capital 719 686 686
Share premium 13,162 12,396 12,396
Share-based compensation
reserve 300 296 293
Retained earnings (12,506) (10,994) (11,742)
-----------
Total equity 1,675 2,384 1,633
----------- ----------- -----------
Consolidated Statement of changes in equity for the six months
ended
31 December 2018
Share Capital Share Premium Share-based Retained Total
compensation Loss
reserve
GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
As at 30 June 2017
(Audited) 661 11,765 192 (10,272) 2,346
Issue of share capital
(net) 25 631 - - 656
Loss for the period - - - (722) (722)
Share-based compensation
reserve - - 104 - 104
As at 31 December
2017 (Unaudited) 686 12,396 296 (10,994) 2,384
Loss for the period - - - (748) (748)
Share-based compensation
reserve - - (3) - (3)
As at 30 June 2018
(Audited) 686 12,396 293 (11,742) 1,633
Issue of share capital
(net) 33 766 - - 799
Loss for the period - - - (764) (764)
Share-based compensation
reserve - - 7 - 7
As at 31 December
2018 (Unaudited) 719 13,162 300 (12,506) 1675
-------------- -------------- -------------- --------- ---------
Consolidated Cash Flow Statement for the six months ended 31
December 2018
Unaudited Unaudited Audited
Six Months Six Months Year
ended ended ended
31 Dec 31 Dec 30 Jun
18 17 18
GBP'000 GBP'000 GBP'000
Net cash flow from operating activities
Continuing operations:
Loss before tax (907) (830) (1,718)
Depreciation 3 2 5
Share-based compensation charge 7 104 101
Share of costs of associate 5 9 12
Finance income (2) (1) (4)
------------
(894) (716) (1,604)
Decrease/(increase) in trade and
other receivables 72 (98) (60)
Decrease/(increase) in trade and
other payables (65) 16 28
------------
Cash (used in)/generated from operations (887) (798) (1,636)
Tax received 252 - 43
Net cash from operating activities (635) (798) (1,593)
------------ ------------ ---------
Cash flows from investing activities
Purchase of tangible fixed assets - - -
Repayment of investment funds - - -
Interest received 2 1 4
------------ ------------ ---------
Net cash from investing activities 2 1 4
------------ ------------ ---------
Cash flows from financing activities
Repayment of loan to Director 1 - 2
Share issue 33 25 25
Share premium on share issue 766 631 631
------------
Net cash inflow/(outflow) from
financing activities 800 656 658
------------ ------------ ---------
Increase/(decrease) in cash and
equivalents 167 (141) (931)
------------ ------------ ---------
Cash and equivalents at start of
period 1,375 2,306 2,306
------------ ------------ ---------
Cash and equivalents at end of
period 1,542 2,165 1,375
------------ ------------ ---------
NOTES TO THE UNAUDITED RESULTS FOR THE SIX MONTHSED
31 DECEMBER 2018
1. Financial information
These half-yearly financial statements are unaudited and do not
constitute statutory financial statements within the meaning of
Section 434 of the Companies Act 2006. The Annual Report and
Accounts for the year ended 30 June 2018 have been delivered to the
Registrar of Companies and are available from Sareum's web site,
www.sareum.com. The report of the auditor on those accounts was not
qualified and contained no statement under Section 498 of the
Companies Act 2006.
2. Basis of accounting
The accounting policies adopted are consistent with those of the
financial statements for the year ended 30 June 2018, as described
in those financial statements. As at the date of signing the
interim financial statements, there are no new Standards likely to
affect the financial statements for the year ending 30 June
2019.
The Group's current cash and short-term deposits will meet the
existing commitments and operating needs for at least a year. The
Directors anticipate that the Group will secure sufficient
equity-based funding and/or revenue from partnering agreements
during the coming year to ensure that the Group's programmes
continue to reach their full potential. Therefore these financial
statements have been prepared on a going concern basis.
3. Taxation
No liability arises for corporation tax for the six-month period
ended 31 December 2018. Research and Development tax credits,
receivable as cash, are estimated to be GBP143,000 for the
period.
4. Dividends
The directors do not propose the payment of a dividend in
respect of the six months ended 31 December 2018.
5. Loss per share
Basic and diluted loss per share is 0.03p (2017: 0.03p). The
basic and diluted loss per ordinary share is calculated by dividing
the Group's loss for the six months of GBP764,000 (2017: profit
GBP722,000) by 2,783,601,914 (2017: 2,666,963,118), the weighted
average number of shares in issue during the period.
There is no dilutive effect in respect of share options during
the six months to 31 December 2018 because the Group generated a
loss in that period.
6. Availability of half-yearly report
This half-yearly statement is available on request from the
offices of the Company at Unit 2a, Langford Arch, London Road,
Pampisford, Cambridge CB22 3FX and to download from the Company's
website, www.sareum.co.uk.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR UOOBRKNAORAR
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