TIDMFAB
RNS Number : 0847O
Fusion Antibodies PLC
29 September 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse (amendment) (EU Exit) Regulations 2019/310
("MAR"). With the publication of this announcement via a Regulatory
Information Service, this inside information is now considered to
be in the public domain.
29 September 2023
Fusion Antibodies plc
("Fusion" or the "Company")
Final results
Fusion Antibodies plc (AIM: FAB), a contract research
organisation ("CRO") providing discovery, design, and optimisation
services for therapeutic antibodies to the global healthcare
market, announces its final results for the year ended 31 March
2023.
Commercial and operational highlights
-- Full year revenues lower by 40% to GBP2.9m (2022: GBP4.8m)
-- Loss for the year of GBP2.6m (2022: loss GBP1.2m)
-- Investment in R&D GBP0.8m (2022: GBP0.7m)
-- Introduction of Integrated Therapeutic Antibody Service
-- Introduction of Mammalian Display service
-- Appointment of Adrian Kinkaid as CEO in August 2022
-- Cash position at the year-end GBP0.2m (2022: GBP2.0m)
Post period end highlights
-- Share proceeds of GBP1.5m (net of costs)
-- Appointment of Stephen Smyth as interim CFO in September 2023
-- Memorandum of Understanding ("MoU") signed with leading US
based AI/ML business and the first purchase order received
Separately, the Annual Report and Accounts for the year ended 31
March 2023 and the Notice of the Company's Annual General Meeting
("AGM") are being posted to shareholders shortly. A copy of the
2023 Annual Report and Accounts, the Notice of AGM and accompanying
form of proxy will soon be available to download from the Company
website here: https://www.fusionantibodies-ir.com/ .
The AGM will be held on 27 October 2023 at 11.00 am at the
Company's offices at Springbank Industrial Estate, 1 Springbank Rd,
Dunmurry, Belfast BT17 0QL.
Director change
Sonya Ferguson, Non-executive Director, will not be seeking
re-election at the AGM, as she has decided to pursue another
business opportunity. She will cease to be a Director of the
Company at the close of the AGM.
Adrian Kinkaid, CEO of Fusion Antibodies commented: "This has
been a challenging year for the Company and we have been through a
number of changes over the last few months. We successfully raised
funds in a very difficult market in May and implemented some
additional cost saving measures to provide us with the necessary
capital we needed to progress the business.
"More recently, we announced we had signed an agreement with a
US based AI/ML business to support our antibody discovery service,
AI/ML-Ab(TM) and subsequently received our first order under the
framework of this agreement . We are continuing to work on other
aspects of the OptiMAL(R) programme, and in particular the
development of the fully human antibody library which we remain
confident in.
"On a separate note, the Board would like to offer our sincere
thanks to Sonya Ferguson for her service to the Company as a
Non-executive Director. She has been with the Company since 2016,
prior to our admission to trading on AIM. We wish her well on her
future endeavours. As a Company, we are looking forward to better
times ahead, reaching profitability and delivering value to our
shareholders."
Investor briefing
Fusion will host an online live presentation open to all
investors on Wednesday, 4 October 2023 at 11am BST, delivered by Dr
Adrian Kinkaid, CEO and Stephen Smyth, CFO. The Company is
committed to providing an opportunity for all existing and
potential investors to hear directly from management on its results
whilst additionally providing an update on the business and current
trading.
The presentation will be hosted through the digital platform
Investor Meet Company.
Investors can sign up to Investor Meet Company for free and add
to meet Fusion Antibodies plc via the following link:
https://www.investormeetcompany.com/fusion-antibodies-plc/register-investor
For those investors who have already registered and added to
meet the Company, they will automatically be invited. Questions can
be submitted pre-event via your IMC dashboard or in real time
during the presentation, via the "Ask a Question" function. Whilst
the Company may not be in a position to answer every question it
receives, it will address the most prominent within the confines of
information already disclosed to the market through regulatory
notifications. A recording of the presentation, a PDF of the slides
used, and responses to the Q&A session will be available on the
Investor Meet Company platform afterwards.
Enquiries:
Fusion Antibodies plc www.fusionantibodies.com
Adrian Kinkaid, Chief Executive Officer Via Walbrook PR
Stephen Smyth, Chief Financial Officer
Richard Buick, Chief Scientific Officer
Allenby Capital Limited Tel: +44 (0)20 3328 5656
James Reeve/Vivek Bhardwaj (Corporate
Finance)
Tony Quirke/Joscelin Pinnington (Sales
and Corporate Broking)
Walbrook PR Tel: +44 (0)20 7933 8780 or fusion@walbrookpr.com
Anna Dunphy Mob: +44 (0)7876 741 001
About Fusion Antibodies plc
Fusion is a Belfast based contract research organisation ("CRO")
providing a range of antibody engineering services for the
development of antibodies for both therapeutic drug and diagnostic
applications.
The Company's ordinary shares were admitted to trading on AIM on
18 December 2017. Fusion provides a broad range of services in
antibody generation, development, production, characterisation and
optimisation. These services include antigen expression, antibody
production, purification and sequencing, antibody humanisation
using Fusion's proprietary CDRx (TM) platform and the production of
antibody generating stable cell lines to provide material for use
in clinical trials. Since 2012, the Company has successfully
sequenced and expressed over 250 antibodies and successfully
completed over 200 humanisation projects and has an international,
blue-chip client base, which has included eight of the top 10
global pharmaceutical companies by revenue.
The Company was established in 2001 as a spin out from Queen's
University Belfast. The Company's mission is to enable
pharmaceutical and diagnostic companies to develop innovative
products in a timely and cost-effective manner for the benefit of
the global healthcare industry. Fusion Antibodies provides a broad
range of services in antibody generation, development, production,
characterisation and optimisation.
Fusion Antibodies growth strategy is based on combining the
latest technological advances with cutting edge science to deliver
new platforms that will enable Pharma and Biotech companies get to
the clinic faster, with the optimal drug candidate and ultimately
speed up the drug development process.
The global monoclonal antibody therapeutics market was valued at
$186 billion in 2021 and is forecast to surpass $445 billion in
2028, an increase at a CAGR of 13.2 per cent. for the period 2022
to 2028. Approximately 150 monoclonal antibody therapies are
approved and marketed globally as of June 2022 with the top four
antibody drugs each having sales of more than $3 bn in 2021.
Chairman's Statement
This year has been a tough year for the Company and very
commercially challenging. The year has seen a downturn in market
conditions and investment into our customers' early-stage
therapeutic pipelines Venture capital funding, typically the
primary source of investment for early-stage biotech, has fallen to
its lowest level since 2019.
The Biotechnology sector's contribution to the global R&D
pipeline has been growing in the last decade. There are more
biotech companies now than ever before, but consequently there is
less investment to go around and this lack of growth capital for
many biotech companies means they must be very cautious in their
spending. This has resulted in projects being delayed and
reductions in head counts. However, we believe that the
reprioritization of pipelines and optimisation of development
strategies will give Fusion more opportunities going forward as
companies could look to outsource more of their projects to give
them greater control of their fixed cost base. We believe that
Biotech companies generally are moving towards leveraging early
engagement opportunities with full-service partners like Fusion to
optimise the impact of external expertise across the development
program, and to maximise their probability of success.
With the biotechnology sector's funding environment undergoing
significant changes, creative solutions are required and Fusion has
responded by introducing our new ITAS (Integrated Therapeutic
Antibody Services) strategy which addresses this new market
dynamic. ITAS pulls together all our current solutions to provide a
continuous service from target discovery to a final stable cell
line ready for larger scale production and is consistent with
Fusion's established philosophy to "begin with the end in mind".
Furthermore, we are looking at ways that the antibody drug
discovery timescale can be shortened, with the development of
OptiMAL (R) , our human antibody library and also through strategic
alliances with AI/ML (artificial intelligence/machine learning)
companies.
Business performance
The year showed a significant downturn in revenue from the
previous year at GBP2.9m (2022: GBP4.8m) due to a combination of
factors. As mentioned, this is primarily d ue to weak market
investment conditions for new drug discovery and development
programs and the subsequent delays to a number of our contracts,
both large and small, combined with the reduced drug development
activity of some of our customers. Notably, a small number of
valuable projects have been suspended by clients due to delayed
investment into those businesses. We are advised by our clients
that we should expect these projects to recommence once their
funding is secured, although the continued uncertainty of
timescales to win and close out contracts and to recognise the
revenues remains a challenge.
This situation was further compounded by the several months
without a CEO in place and the unusually high turnover in the
commercial group this year, necessitating the recruitment and
training of new staff which created some short-term loss of
traction with our customer base. The industry in general has seen
significant movement in staff during and after the pandemic but
more recently this situation has stabilised. It is worth noting
that whilst the Company continues to retain an interest of
longer-term future success milestone or royalty payments in many of
our client projects, there were no such payments this year.
The Company has been carefully managing costs and in particular
towards the later part of the year headcount has been reduced by
11% from an average of 54 to a headcount of 48 at the year end. To
minimise the impact on capacity and capability to deliver
customers' projects, significant cross training of staff from
different laboratories has been implemented.
The focus for our R&D has continued on the OptiMAL (R)
library project, with investment in R&D increasing by 29% over
the same period in the previous year to GBP0.8m (2022:
GBP0.7m).
The downturn in revenues generated an operating loss for the
year of GBP2.6m (2022: loss GBP1.2m). Post year end, the Company
successfully completed a GBP1.67m fundraise to provide additional
working capital and we have now implemented circa. GBP1.6m in
restructuring savings, including a further reduction in headcount
from 48 at March 31 year end 2023 to 29. The Company had previously
announced anticipated annualised cost savings of GBP2.2 million
based on comparisons against the Company's budgets and plans in
place at that time. As the outrun for FY 2023 was lower than
originally budgeted, the revised annualised cost savings identified
now total GBP1.6m. The Board will continue to closely monitor the
Company's cost base and seek to identify additional cost savings
that can be implemented without further impacting the operating
capacity of the Company.
Development of New services
While trading conditions remain challenging, the Company
continues to strive to be at the front of innovation and to provide
new and cutting-edge services to the market. We have implemented a
new strategy and are introducing a new integrated approach in
response to client needs and to ultimately increase revenues. We
are re-aligning the Company's service offering to best serve our
clients who are seeking to outsource more of their work in
therapeutic antibody drug discovery and positioning ourselves as
more of a collaborative partner rather than just a fee-for-service
relationship. Our Integrated Therapeutic Antibody Service (ITAS)
integrates our current Discovery, Engineering and Supply services
into one proposition which aims to enhance the client journey with
the development of high performing antibodies to their targets.
This approach has been trialled with an existing client with
positive results and the Company's aim is to build on this, while
continuing to support our smaller clients who may wish to select
individual services.
The antibody drug discovery industry is gradually moving away
from the use of animals, something that as a Company we recognise
and support. Our R&D program to develop a cell-based mammalian
display technology screening library, OptiMAL (R) , for the direct
identification of intact fully human antibodies against biomarkers
and other targets of interest is progressing, with key stages of
the process now developed, although further optimisation work is
still required to deliver the full operational screening
parameters. We will continue to build a body of data with a view to
establishing commercial relationships for further validation and
the Directors remain optimistic about its likely reception by the
market.
Since our last report, processes to transfect cells with unique
sequences, express those sequences as antibodies and screen and
select antibodies have been optimised. Work is ongoing to optimise
the extraction of specific antibodies to build a body of data with
a view to establishing commercial relationships for further
validation. Already, the R&D investment is bearing fruit with
two stages of the OptiMAL (R) process adding value in that they
enable us to further broaden the Company's integrated service
offering. The OptiMAL (R) process includes a novel DNA library of
antibody sequences at the front end and a Mammalian Display
platform as the final step to enable the library antibodies to be
expressed on the surface of mammalian cells as fully intact human
IgG antibodies. We have commenced the development of two further
discovery platforms utilising these two key OptiMAL (R) steps.
The Mammalian Display platform is ideally suited to be used in
conjunction with the output from artificial intelligence/machine
learning (AI/ML) discovery platforms. These AI/ML platforms provide
a method of designing panels of antibodies in-silico, with the
AI/ML algorithms typically producing small libraries of sequences
which are an excellent match with our Mammalian Display platform,
which can transform these designs into real protein molecules for
screening and final selection. This is a potentially powerful
combination to speed up the discovery process and the Company is
actively engaging with leading AI/ML companies as potential
partners to make these novel approaches available to our client
base. In August 2023 we announced that the negotiations with a
leading AI/ML company based in the USA have been finalised and the
first order emanating from this collaboration to generate de-novo
antibody sequences has been received.
Furthermore as previously announced a Memorandum of
Understanding (MoU) with another AI/ML company based in Europe has
also been signed. These collaborations are expected to provide for
the development of partnerships that will enable the derivation and
evaluation of AI generated antibodies and offer clients a new route
to market using the AI/ML-Ab (TM) service (pronounced AIM Lab),
which will be complementary to our established discovery
methods.
The novel DNA library of antibody sequences from OptiMAL (R)
will also be used as the input design for OptiPhage(TM) , a phage
display based version of the same DNA library. These DNA sequences
are packaged into a more commonly used Phage display format where
smaller antibody fragments can be screened, compared to whole
antibodies via OptiMAL (R) . We believe that the provision of
OptiPhage(TM) at a lower price point provides the Company with an
ability to protect the premium pricing of the OptiMAL (R) programme
whilst meeting budgetary constraints of its customers. It may also
be the platform of choice for those wanting antibody fragments as
their end product.
As a Company, we are proud of our innovations and of our
dedicated team of scientists who work on the next generation of
antibody discovery technologies and we will continue to protect
novel ideas through the filing of patents. This year saw the filing
of two new patents. The first one is in respect of the Company's
antigen display technology, which should increase the success rate
in identifying highly potent antibodies from Fusion's range of
Antibody Discovery technologies, although it does have a wider
potential application. The second is for a panel of antibodies that
bind to an important target for cancer therapeutics. These
antibodies have the potential to inhibit the pro-tumourigenic
activity of their target in cancer, which is supported by early
pre-clinical data. The Company is exploring options to out-licence
these antibodies to a clinical development company to progress them
into Phase I clinical trials.
Board and Employees
I was very pleased to announce the arrival of our new CEO, Dr
Adrian Kinkaid, in August last year. Adrian brings a depth of
experience in the life science and biotherapeutics industries and
has expertise in the development and commercialisation of all the
main classes of affinity reagents with over twenty-five years'
experience working in the bioscience sector. Adrian's previous
experience has included senior management positions in drug
discovery, reagent technology and diagnostics and joins at a time
where his strong leadership and vision will be key in the Company's
turnaround strategy.
One further change to the Board during the financial year was Mr
Tim Watts, who stepped down as a Non-Executive Director in
September 2022. Tim joined the Company at the time of the IPO in
December 2017, was the Chair of the Company's Audit Committee and
has made a valuable contribution to the Company, particularly from
his knowledge and experience of public companies. On behalf of the
Board, I would like to thank him for all that he had done for the
Company and wish him well in his retirement.
Post the end of the year we announced that Mr James Fair, our
Chief Financial Officer, was stepping down from the Board effective
31 May 2023. The Board would like to thank James for his
significant contribution to the Company over the past 14 years and
wish him well in his future endeavours. We are grateful to Ms
Frances Johnston who stepped in as the Company Secretary until the
appointment in September 2023 of Mr Stephen Smyth as an interim
part time CFO and Company Secretary. Stephen Smyth was designated
Company Secretary on 28 July 2023 and appointed on Companies House
on 16 September 2023 . We have outsourced some other financial
management accounting activities until the point where the Company
is in a stronger financial position to allow more permanent
solutions.
I would also like to mention all the staff, who at the beginning
of the year were still working under Covid-19 restrictions, with
many of our business development and financial teams continuing to
work from home. The Company is continuing to offer flexible hybrid
working where possible within the employee retention strategy.
The Fusion team has worked well under difficult conditions with
a strong collaborative team effort and disciplined commitment for
which the board is very grateful. The formation of the new
Scientific Advisory Panel (the "SAP") was announced last year and
is a making a positive input into the Companies scientific
strategy. During the year there was a change in the makeup of the
group with Professor Terry Rabbitts stepping down and with Dr Ulf
Grawunder a ttending SAP meetings. I would like to thank Professor
Rabbitts for his contribution and welcome Dr Grawunder, who is
based in Basel and who has extensive experience in the development
of antibody-based therapeutics. He co -founded a company
specializing in the development of therapies for cancer patients
and has experience in mammalian cell-based antibody display
platforms.
The appointment of these industry experts has already had an
impact in our new AI/ML focus, with Professor Charlotte Deane,
Professor of Structural Bioinformatics at the University of Oxford
sharing her insights in the development and application of future
machine learning algorithms in the field of antibody design.
Corporate governance
The long-term success of the business and delivery on strategy
depends on good corporate governance. The Company complies with the
Quoted Companies Alliance Corporate Governance Code as explained
more fully in the Governance Report of the annual report and
accounts.
Post year end and outlook
As mentioned previously, the significant downturn in revenues
generated a larger than anticipated operating loss for the FY23 and
as this put a major strain of the cash levels, a new round of
funding was commenced at the end of this FY and completed
successfully in June 2023. Unfortunately, the need for this
fundraising materialised at a point when investor confidence, and
confidence in Fusion were at a low-point, resulting in a
significant discount in the price at which new monies could be
raised.
The subscription of new shares was through a placing, a
Directors subscription and a retail offer and I would like to thank
all the shareholders, both current and new, who supported us in
this round, and in particular the Directors who subscribed for just
over 8% of the shares. A total of GBP1,671,938 (GBP1.5m net of
expenses) was raised through the issue of 33,438,768 ordinary
shares at 5p per share.
In light of the macro-economic headwinds which the Company and
its customers are facing, the Board identified GBP1.6 million of
annualized savings, which were implemented after the fund raise.
This cost saving includes a significant reduction in headcount
across all levels of the Company, including the Company's
non-executive directors having agreed to forgo all remuneration
that they are entitled to and the Company's executive directors
having agreed to changes in their remuneration (which include
taking shares in place of some cash remuneration) to further
conserve cash until such time that the Company's trading has
recovered to an appropriate level.
The Directors believe that, notwithstanding these cost
reductions, the Company will still be able to progress the launch
of ITAS. Budgets have been maintained for sales and marketing and
travel and, where possible, the Company will seek client
contributions for further collaborative trials with a view to full
commercialization of OptiMAL (R) and the initial AI/ML-Ab(TM) and
OptiPhage(TM) projects. As mentioned, in August 2023, we were
pleased to announce that an agreement had been signed with a
leading US-based AI/ML company and the first order received, from a
customer based in Australia. This represents an important first
step in delivering this strategy.
Whilst there remains a significant amount of uncertainty over
the timing and implementation of future contract wins due to
reduced investment in the broader biotech sector, we expect trading
to recover incrementally over the short to medium term both in
respect of existing services and the new services coming on
stream.
Simon Douglas
Chairman
28 September 2023
CEO's report and operations review
The Therapeutics industry's need for antibodies has arguably
never been higher, with significant breakthroughs such as the
approval of lecanemab, donanemab and others for Alzheimer's disease
demonstrating the applicability of antibodies to treat central
nervous system diseases and that a new set of therapeutic targets
are now to be considered viable. Similarly, the diagnostics
industry is enjoying an unprecedented level of awareness and
familiarity, especially with antibody enabled lateral flow devices
having been used extensively in the detection of Covid 19. However,
largely due to macro-economic factors, FY2023 was also a
challenging year for the associated services industry with
investment into the biotech sector reducing significantly in the
principal geographical regions as Covid related investment
rebalanced. As we entered the financial year, the Company was
inevitably exposed to these factors with a high proportion of our
business directly linked to venture capital funded clients. Faced
with uncertainty about their funding, many clients opted to place
projects on hold and not to initiate new projects until the
economic landscape had improved.
Transitioning to a model whereby we can derive more revenue from
those clients still actively progressing their research programmes
became increasingly important to the Company and I am pleased to
say we have made significant progress with the launch of our
Integrated Therapeutic Antibody Services (ITAS). This also
positions the business to better exploit our emerging platforms for
antibody discovery, or "Discovery Engines", which we are developing
from the OptiMAL (R) research project. The initial objective for
the research project was to create OptiMAL (R) , a groundbreaking
and industry leading platform for the discovery of human antibodies
through a highly diverse library of DNA sequences expressed as
fully intact antibodies, or IgG molecules, expressed on the surface
of mammalian cells. We now have clear evidence that this has been
achieved with cells stained to show the antibodies displayed on the
cell surface. With the antibody on the cell surface, a cell can be
individually selected and manipulated to produce larger quantities
of the antibody of interest and it is this last stage that requires
further optimisation.
This image shows individual cells at high magnification. The
cells have been stained with a red stain that is specifically for
the expressed human antibody created by the OptiMAL (R) process.
The red stain is seen predominantly on the cellular surface showing
that antibodies are being produced by the cell and on the cell
surface. Such cells can be individually selected and manipulated to
produce larger quantities of the antibody of interest and it is
this last stage that requires further optimisation.
We are also in the process of spinning out two further discovery
platforms from the same research program: AI/ML-Ab(TM) and
Optiphage(TM) . The Mammalian Display element of OptiMAL (R) is
being combined with algorithms for the de novo design of novel
antibodies from various artificial intelligence (AI) and Machine
Learning (ML) technologies (AI/ML-Ab(TM) ) which have very much
come to the fore in the last year or two, whilst Optiphage(TM)
utilizes a library based on the same sequences as OptiMAL (R) , but
modified for use in a more industry standard phage-display format.
The availability of these diverse and complementary proprietary
discovery engines, which can be deployed singly or in concert, also
enables us to provide a de-risked approach to antibody discovery,
further benefiting our clients and strengthening Fusion Antibodies'
position as the partner of choice. In August 2023 we were pleased
to announce that we had a signed agreement with a leading US-based
AI/ML company. I t is envisaged that both parties will co-market
the combined service offerings and as announced we have already
received the first order. This purchase order demonstrates
commercial traction for AI/ML-Ab(TM) and we believe that there is
significant market potential for this service offering.
At Fusion, our aim is to develop a range of services that gives
our clients choice and a range of solutions best suited to the
biological needs of their targets. We understand that 'one size'
does not fit all and aim to broaden our service menu to give the
customer the best chance of meeting their technical objectives with
the least risk. This is already in place with our cell line
development (CLD) and stabilization services, where we offer a
number of cell lines. We offer our clients the choice of three
separate cell lines, all in-licensed, which have different
biological characteristics and financial price points. The final
selection process is empirical, with the screening process
involving the assessment of yield and stability which will vary
from antibody to antibody. CLD is a service that is required
towards the end of the development process and we intend to develop
and introduce a similar choice at the beginning: at the discovery
end of the development plan.
Due to the strong headwinds caused by the macro-economic
conditions, the Company ended the year looking to secure additional
investment which it successfully completed in June 2023, raising
just under GBP1.7 million
(before expenses). Thanks to the continued support of our shareholders, we can move forward with re-establishing our presence in the market and maintaining investment in our new discovery services.
Business Review
The Company's revenue performance for the financial year to 31
March 2023 fell by 40% vs 2022 to GBP2.9m due to the macroeconomic
headwinds. Despite the reduction in revenues, we have experienced
continuing interest and uptake of our proprietary RAMP(TM)
technology service platform which represents a key driver of
revenues for the business. Over the course of the year, Fusion has
initiated and successfully completed a number of RAMP(TM) client
projects, which further affirms the valuable contribution of this
service offering to both the Company and to our customers. The key
geographical region of North America represented 50% of revenues
and with a number of key client accounts. The Asia Pacific markets
such as Japan, India and Korea, where we have appointed
distributors, were also impacted by the global downturn in the
sector, although client relationships are strengthening and
opportunities are increasing. In addition to the 'Fee for Service'
revenue model, and where there is a significant contribution to the
client's intellectual property, we look to enter into a
collaborative agreement structure which will enable Fusion to
access the downstream value of the services and share in the
commercial success. This will further enable the Company to unlock
the intrinsic value that our proprietary service platforms provide
to our clients and generate additional shareholder value.
We continued to drive investment and innovation into the R&D
pipeline of new service offerings. In the financial year, we made
further progress on the development work of OptiMAL (R) with
successful proof of concept for the Mammalian Display element. This
has already been harnessed to support the AI/ML-Ab(TM) offering,
which is itself attracting market attention, and is already
generating new leads. I strongly believe that AI/ML-Ab(TM) ,
Optiphage(TM) and OptiMAL (R) represent key differentiators and
future drivers of growth for the business and will enable the
Company to access a sizeable addressable market generating
significant shareholder value.
We are pleased to report that the Company filed a patent
application for a panel of antibodies that bind an important target
for cancer therapeutics. These antibodies have the potential to
inhibit the pro-tumourigenic activity of their target in cancer,
which is supported by pre-clinical data. The Company is exploring
options to out-licence these antibodies to a clinical development
company to progress them into Phase I clinical trials.
Our Scientific Advisory Panel of industry experts and thought
leaders in the field of antibody discovery and services has been
particularly valuable in the development of the new platforms and
it is anticipated that their continued guidance will further
support the commercialisation of these valuable assets.
Inventory of consumables has been maintained at relatively high
levels to allow for any supply chain disruption from the UK's
departure from the European Union and the disruption caused by the
Coronavirus pandemic. In the year, 14% of the Company's revenues
arose from exports to the EU countries and we look to build on
this, supported by Northern Ireland's unique trading position with
the EU and UK. We also continue to develop other export markets as
our services find universal acclaim and to mitigate risks of
overexposure to any one geographical market.
Financial Results
Full year revenues for the year in total were down by 40% to
GBP2.9m (2022: GBP4.8m).
The EBITDA loss for the year was GBP2.5m (2022: GBP0.6m loss)
(see note 26) and, excluding the R&D expenditure of GBP0.8m,
EBITDA for the year was a loss of GBP1.5m. The loss before tax was
GBP2.9m (2022: GBP1.3m loss).
The Company held current net assets of GBP0.8m at 31 March 2023
(2022: GBP3.1m) which mainly comprised inventories and trade and
other receivables.
The Company ended the year with GBP0.2m of cash and cash
equivalents, having used GBP1.7m of cash in operations during the
year of which GBP0.8m was for R&D, invested GBP0.1m in
property, plant and equipment and GBP0.1m servicing asset-based
borrowings. As previously mentioned, in June 2023 the Company
issued equity for net proceeds of c.GBP1.5m which puts it in a good
position to continue its sales and marketing activities and the
development of new discovery platforms and services.
The current financial year commenced with similar conditions to
those experienced in the latter part of FY 2023, with new business
significantly lower than historic levels. In the past few months,
the Company has enjoyed an uplift in business engagement from lead
generation through to quote drafting and, pleasingly, purchase
orders received. We've seen a strengthening of the pipeline of
approximately three-fold since the end of 2023. As a result,
revenues for FY2024 will be significantly weighted towards the
second half of the year. The Board is optimistic that our new
services, such as AI/ML-Ab, will contribute positively to future
revenue growth.
Despite FY2023 being a commercially challenging year, I feel
optimistic about the year ahead. Since the year end we have reduced
our cost base significantly but kept a strong and broad technical
base within the Company, raised finance and are in a good cash
position and have some exciting and enviable discovery services in
development. I believe that the slowdown in the market is beginning
to show a level of recovery, with our pipeline already showing
growth, and that we are in a good position to return to growth on a
stronger more stable foundation.
Adrian Kinkaid
Chief Executive Officer
28 September 2023
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 March 2023
2023 2022
Note
GBP'000 GBP'000
------------------------------- ------ -------------------- --------------
Revenue 4 2,901 4,799
Cost of sales (2,327) (2,333)
------------------------------- ------ -------------------- --------------
Gross profit 574 2,466
Other operating income 11 30
Administrative expenses (3,443) (3,821)
Operating loss 5 (2,858) (1,325)
------------------------------- ------ -------------------- --------------
Finance income 8 3 1
Finance expense 8 (4) (9)
------------------------------- ------ -------------------- --------------
Loss before tax (2,859) (1,333)
Income tax credit 10 263 133
------------------------------- ------ -------------------- --------------
Loss for the financial year (2,596) (1,200)
------------------------------- ------ -------------------- --------------
Total comprehensive expense
for the year (2,596) (1,200)
Pence Pence
Loss per share
Basic 11 (10.0) (4.6)
Diluted 11 (10.0) (4.5)
Statement of Financial Position
As at 31 March 2023
2023 2022
Notes GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 12 - -
Property, plant and equipment 13 375 633
375 633
---------------------------------- ------- --------- ---------
Current assets
Inventories 15 539 585
Trade and other receivables 16 690 1,517
Current tax receivable 263 131
Cash and cash equivalents 195 2,049
---------------------------------- ------- --------- ---------
1,687 4,282
---------------------------------- ------- --------- ---------
Total assets 2,062 4,915
Liabilities
---------------------------------- ------- --------- ---------
Current liabilities
Trade and other payables 17 844 1,142
Borrowings 18 35 66
---------------------------------- ------- --------- ---------
879 1,208
---------------------------------- ------- --------- ---------
Net current assets 808 3,074
---------------------------------- ------- --------- ---------
Non-current liabilities
Borrowings 18 40 3
Provisions for other liabilities
and charges 19 20 20
---------------------------------- ------- --------- ---------
60 23
---------------------------------- ------- --------- ---------
Total liabilities 939 1,231
Net assets 1,123 3,684
---------------------------------- ------- --------- ---------
Equity
Called up share capital 21 1,040 1,040
Share premium reserve 7,647 7,647
Accumulated losses (7,564) (5,003)
---------------------------------- ------- --------- ---------
Total equity 1,123 3,684
---------------------------------- ------- --------- ---------
Simon Douglas Adrian Kinkaid
Director Director
Registered in Northern Ireland, number NI039740
Statement of Changes in Equity
For the year ended 31 March 2023
Called Share premium Accumulated Total
Notes up share reserve losses equity
capital GBP'000 GBP'000 GBP'000
GBP'000
-------------------------- -------- ----------- ---------------- -------------- ----------
At 1 April 2021 1,024 7,547 (3,824) 4,747
Loss and total
comprehensive expense
for the year - - - (1,200) (1,200)
-------------------------- -------- ----------- ---------------- -------------- ----------
Issue of share
capital 16 100 - 116
Share options -
value of employee
services - - - 21 21
-------------------------- -------- ----------- ---------------- -------------- ----------
Total transactions
with owners, recognised
directly in equity 16 100 21 137
-------------------------- -------- ----------- ---------------- -------------- ----------
At 31 March 2022 21 1,040 7,647 (5,003) 3,684
-------------------------- -------- ----------- ---------------- -------------- ----------
At 1 April 2022 1,040 7,647 (5,003) 3,684
Loss and total
comprehensive expense
for the year - - - (2,596) (2,596)
-------------------------- -------- ----------- ---------------- -------------- ----------
Share options -
value of employee
services - - - 35 35
-------------------------- -------- ----------- ---------------- -------------- ----------
Total transactions
with owners, recognised
directly in equity - - - 35 35
-------------------------- -------- ----------- ---------------- -------------- ----------
At 31 March 2023 21 1,040 7,647 (7,564) 1,123
-------------------------- -------- ----------- ---------------- -------------- ----------
Statement of Cash Flows
For the year ended 31 March 2023
2023 2022
Notes GBP'000 GBP'000
---------------------------------------------- ------- --------- ---------
Cash flows from operating activities
Loss for the year (2,596) (1,200)
Adjustments for:
Share based payment expense 35 21
Depreciation 372 749
Amortisation of intangible assets - - 2
Finance income (3) (1)
Finance costs 4 9
Income tax credit (263) (133)
Decrease/(Increase) in inventories 46 (105)
Decrease/(increase) in trade and other
receivables 819 (82)
(Decrease)/increase in trade and other
payables (299) 309
---------------------------------------------- ------- --------- ---------
Cash used in operations (1,885) (431)
Income tax received 131 101
---------------------------------------------- ------- --------- ---------
Net cash used in operating activities (1,754) (330)
Cash flows from investing activities
Purchase of property, plant and equipment 13 (114) (258)
Finance income - interest received 8 3 1
---------------------------------------------- ------- --------- ---------
Net cash used in investing activities (111) (257)
Cash flows from financing activities
Proceeds from new issue of share capital
net of transaction costs - - 116
Proceeds from new borrowings 18 69 -
Repayment of borrowings 18 (62) (162)
Finance costs - interest paid 8 (4) (9)
---------------------------------------------- ------- --------- ---------
Net cash generated/(used in) from financing
activities 3 (55)
Net decrease in cash and cash equivalents (1,862) (642)
Cash and cash equivalents at the beginning
of the year 2,049 2,686
---------------------------------------------- ------- --------- ---------
Effects of exchange rate changes on cash
and cash equivalents 8 5
---------------------------------------------- ------- --------- ---------
Cash and cash equivalents at the end of
the year 195 2,049
---------------------------------------------- ------- --------- ---------
Notes to the Financial Statements
For the year ended 31 March 2023
1 General information
Fusion Antibodies plc is a company incorporated and domiciled in
the United Kingdom and is registered in Northern Ireland having its
registered office at 1 Springbank Road, Springbank Industrial
Estate, Dunmurry, Belfast, BT17 0QL.
The principal activity of the Company is the research,
development and manufacture of recombinant proteins and antibodies,
particularly in the areas of cancer and infectious diseases.
2 Significant accounting policies
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all years presented unless otherwise
stated.
Basis of preparation
The financial information included in this preliminary
announcement does not constitute statutory accounts of the Company
for the years ended 31 March 2023 and 31 March 2022 but is derived
from those accounts. Statutory accounts for the year ended 31 March
2022 have been delivered to the Registrar of Companies and those
for 2023 will be delivered following the Company's Annual General
Meeting. The auditors have reported on those accounts: their
reports were (i) unqualified, although included an emphasis of
matter in respect of material uncertainty around going concern and
(ii) did not contain a statement under section 498(2) or (3) of the
Companies Act 2006.
The financial statements have been prepared on the historical
cost convention.
The financial statements are prepared in sterling, which is the
functional currency of the Company. Monetary amounts in these
financial statements are rounded to the nearest GBP1,000.
The financial statements of Fusion Antibodies plc have been
prepared in accordance with UK-adopted International Accounting
Standards and with the requirements of the Companies Act 2006 as
applicable to companies reporting under those standards.
The preparation of financial statements in conformity with
International Financial Reporting Standards ("IFRS") requires the
use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the
Company's accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed
in note 3.
Going concern
The Company has returned a loss of GBP2.6m for the year ended 31
March 2023 (Year ended 31 March 2022: Loss of GBP1.2m) and at the
year-end had net current assets of GBP0.8m (31 March 2022: Net
current assets of GBP3.1m) including GBP0.2m (31 March 2022: GBP2m)
of cash and cash equivalents. Since the reporting date the Company
has raised net proceeds of GBP1.5m from the issue of ordinary
shares and has undergone a restructuring process to reduce annual
costs by approximately GBP1.6m. The Company continues to expend
cash in a planned manner to both grow the trading aspects of the
business and to develop new services through research and
development projects. Revenues for the year were GBP2.9m,
significantly below market expectations and 40% lower than revenues
for the prior year. Uncertainty in levels of investment in the
sector and, therefore, the amounts to be invested in R&D by our
customers has resulted in a number of projects being delayed in
FY2023 and a continued softness in the marketplace at the beginning
of FY2024. This situation was further compounded by the several
months without a CEO in place and the unusually high turnover of
staff in the Company's commercial team in the year, necessitating
the recruitment and training of new staff which created some
short-term loss of traction with our customer base.
The financial statements have been prepared on the going concern
basis, which assumes that the company will continue to be able to
meet its liabilities as they fall due for at least twelve months
from the date of signing these financial statements. The directors
have, at the time of approving the financial statements, a
reasonable expectation that the Company has adequate resources to
continue in operational existence at least for 12 months from the
reporting date. Thus, they continue to adopt the going concern
basis of accounting in preparing the financial statements. To
support the going concern basis of preparation, cash flow forecasts
have been prepared which incorporate a number of assumptions upon
which sensitivities have been performed to reflect severe but
plausible downside scenarios. These assumptions include the rate at
which revenue growth can be achieved.
The directors note that there is inherent uncertainty in any
cash flow forecast, however this is further exacerbated given the
nature of the company's trade and the industry in which it
operates. Due to the risk that revenues and the related conversion
of revenue to cash inflows may not be achieved as forecast over the
going concern period, the Directors believe that there exists a
material uncertainty that may cast significant doubt on the
Company's ability to continue as a going concern and it may be
unable to realise its assets and discharge its liabilities in the
normal course of business.
The financial statements do not include the adjustments that
would result if the Company were unable to continue as a going
concern.
Revenue recognition
Revenue comprises the fair value of the consideration received
or receivable for the provision of services in the ordinary course
of the Company's activities. Revenue is shown net of value added
tax and where a contractual right to receive payment exists.
The Company's performance obligations for its revenue streams
are deemed to be the provision of specific services or materials to
the customer. Performance obligations are identified on the basis
of distinct activities or stages within a given contract that the
customer can benefit from, independent of other stages in the
contract. The transaction price is allocated to the various
performance obligations, based on the relative fair value of those
obligations, and then revenue is recognised as follows:
-- Revenue is recognised over the period that services are
provided using the percentage of completion method, based on the
input method using costs incurred to date relative to the expected
total costs for each performance obligation; and
-- Where a contract includes a payment contingent upon the
customer subsequently achieving a pre-defined milestone with their
development programme, revenue in the amount of the total success
payment due is recognised when the pre-defined condition(s) have
been met.
Contract assets arise on contracts with customers for which
performance obligations have been satisfied (or partially satisfied
on an over time basis) but for which the related amounts have not
yet been invoiced or received.
Contract liabilities arise in respect of amounts invoiced during
the year for which the relevant performance obligations have not
been met by the year-end. The Company's contracts with customers
are typically less than one year in duration and any contract
liabilities would be expected to be recognised as revenue in the
following year.
Grant income
Revenue grants received by the Company are recognised in a
manner consistent with the grant conditions. Once conditions have
been met, grant income is recognised in the Statement of
Comprehensive Income as other operating income.
Research and development
Research expenditure is written off as incurred. Development
expenditure is recognised in the Statement of Comprehensive Income
as an expense until it can be demonstrated that the following
conditions for capitalisation apply:
-- it is technically feasible to complete the scientific product
so that it will be available for use;
-- management intends to complete the product and use or sell it;
-- there is an ability to use or sell the product;
-- it can be demonstrated how the product will generate probable future economic benefits;
-- adequate technical, financial and other resources to complete
the development and to use or sell the product are available;
and
-- the expenditure attributable to the product during its
development can be reliably measured.
Intangible assets
Software
Software developed for use in the business is initially
recognised at historical costs, net of amortisation and provision
for impairment. Subsequent development costs are included in the
asset's carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company and the cost of
the item can be measured reliably.
Software is amortised over its expected useful economic life,
which is currently estimated to be 4 years. Amortisation expense is
included within administrative expenses in the Statement of
Comprehensive Income.
Property, plant and equipment
Property, plant and equipment are initially recognised at
historical cost, net of depreciation and any impairment losses.
Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of the replaced part is
de-recognised. All other repairs and maintenance are charged to the
statement of comprehensive income during the financial year in
which they are incurred.
Subsequently, property plant and equipment are measured at cost
or valuation net of depreciation and any impairment losses.
Costs associated with maintaining computer software programmes
are recognised as an expense as incurred. Software acquired with
hardware is considered to be integral to the operation of that
hardware and is capitalised with that equipment. Software acquired
separately from hardware is recognised as an intangible asset and
amortised over its estimated useful life.
Depreciation is provided on all property, plant and equipment at
rates calculated to write off the cost less estimated residual
value of each asset on a straight line basis over its expected
economic useful life as follows:
Right of use assets The remaining length of the lease
Leasehold improvements The lesser of the asset life and the
remaining length of the lease
Plant and machinery 4 years
Fixtures, fittings & equipment 4 years
Leases
Leases in which a significant portion of the risks and rewards
of ownership remain with the lessor are deemed to give the Company
the right-of-use and accordingly are recognised as property, plant
and equipment in the statement of financial position. Depreciation
is calculated on the same basis as a similar asset purchased
outright and is charged to profit or loss over the term of the
lease. A corresponding liability is recognised as borrowings in the
statement of financial position and lease payments deducted from
the liability. The difference between remaining lease payments and
the liability is treated as a finance cost and taken to profit or
loss in the appropriate accounting period.
Impairment of non-financial assets
For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are largely independent cash
inflows (cash-generating units). As a result, some assets are
tested individually for impairment and some are tested at
cash-generating unit level.
All individual assets or cash-generating units are tested
whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the
asset's or cash-generating unit's amount exceeds its recoverable
amount. The recoverable amount is the higher of fair value,
reflecting market conditions less costs to sell, and value in use.
Value in use is based on estimated future cash flows from each
cash-generating unit or individual asset, discounted at a suitable
rate in order to calculate the present value of those cash flows.
The data used for impairment testing procedures is directly linked
to the Company's latest approved budgets, adjusted as necessary to
exclude any restructuring to which the Company is not yet
committed. Discount rates are determined individually for each
cash-generating unit or individual asset and reflect their
respective risk profiles as assessed by the directors. Impairment
losses for cash-generating units are charged pro rata to the assets
in the cash-generating unit. Cash generating units and individual
assets are subsequently reassessed for indications that an
impairment loss previously recognised may no longer exist.
Impairment charges are included in administrative expenses in the
Statement of Comprehensive Income. An impairment charge that has
been recognised is reversed if the recoverable amount of the
cash-generating unit or individual asset exceeds the carrying
amount.
Current tax and deferred tax
The tax expense for the year comprises current and deferred tax.
Tax is recognised in the statement of comprehensive income, except
to the extent that it relates to items recognised directly in
equity.
The current tax charge is calculated on the basis of the tax
laws enacted or substantively enacted at the reporting date in the
UK, where the Company operates and generates taxable income.
Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred tax is recognised on temporary differences arising
between the carrying amounts of assets and liabilities and their
tax bases. Deferred tax is determined using tax rates (and laws)
that have been enacted, or substantively enacted, by the reporting
date and are expected to apply when the related deferred tax asset
is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that it is
probable that future taxable profit will be available against which
the temporary differences can be utilised.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against
current tax liabilities.
Share based employee compensation
The Company operates equity-settled share-based compensation
plans for remuneration of its directors and employees.
All employee services received in exchange for the grant of any
share-based compensation are measured at their fair values. The
fair value is appraised at the grant date and excludes the impact
of any non-market vesting conditions (e.g. profitability and
remaining an employee of the Company over a specified time
period).
Share based compensation is recognised as an expense in the
Statement of Comprehensive Income with a corresponding credit to
equity. If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best
available estimate of the number of share options expected to
vest.
Non-market vesting conditions are included in assumptions about
the number of options that are expected to become exercisable.
Estimates are subsequently revised if there is any indication that
the number of share options expected to vest differs from previous
estimates.
The proceeds received net of any directly attributable
transaction costs are credited to share capital and share premium
when the options are exercised.
Financial assets
Classification
The Company classifies its financial assets in the following
measurement categories:
-- Those to be measured at amortised costs; and
-- Those to be measured subsequently at fair value (either
through Other Comprehensive Income or through profit and loss).
The classification depends on the Company's business model for
managing the financial assets and the contractual terms of the cash
flows. The Company reclassifies its financial assets when and only
when its business model for managing those assets changes.
Recognition and measurement
At initial recognition, the Company measures a financial asset
at its fair value plus transaction costs that are directly
attributable to the acquisition of the financial asset.
Subsequent measurement of financial assets depends on the
Company's business model for managing those financial assets and
the cash flow characteristics of those financial assets. The
Company only has financial assets classified at amortised cost.
Cash and cash equivalents represent monies held in bank current
accounts and bank deposits. These assets are those held for
contractual collection of cash flows, where those cash flows
represent solely payments of principal and interest and are held at
amortised cost. Any gains or losses arising on derecognition is
recognised directly in profit or loss. Impairment losses are
presented as a separate line in the profit and loss account.
Impairment
The Company assesses on a forward-looking basis, the expected
credit losses associated with its debt instruments carried at
amortised cost. For trade receivables the Company applies the
simplified approach permitted by IFRS 9, which requires expected
lifetime losses to be
recognised from the initial recognition of the receivables. For
other receivables the Company applies the three stage model to
determine expected credit losses.
Inventories
Inventories comprise consumables. Consumables inventory is
stated at the lower of cost and net realisable value. Cost is
determined using the first-in, first-out (FIFO) method. Cost
represents the amounts payable on the acquisition of materials. Net
realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in selling
and distribution.
Financial liabilities
Financial liabilities comprise Trade and other payables and
borrowings due within one year and after one year, which are
recognised initially at fair value and subsequently carried at
amortised cost using the effective interest method. The Company
does not use derivative financial instruments or hedge account for
any transactions. Trade payables represent obligations to pay for
goods or services that have been acquired in the ordinary course of
business from suppliers. Trade payables are classified as current
liabilities if payment is due within one year. If not, they are
presented as non-current liabilities.
Provisions
A provision is recognised in the Statement of Financial Position
when the Company has a present legal or constructive obligation as
a result of a past event, that can be reliably measured and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects risks
specific to the liability. The increase in the provision due to the
passage of time is recognised as a finance cost. Provisions for
dilapidation charges that will crystallise at the end of the period
of occupancy are provided for in full.
Employee benefits - Defined contribution plan
The Company operates a defined contribution pension scheme which
is open to all employees and directors. The assets of the schemes
are held by investment managers separately from those of the
Company. The contributions payable to these schemes are recorded in
the Statement of Comprehensive Income in the accounting year to
which they relate.
Foreign currency translation
The Company's functional currency is the pound sterling.
Transactions in foreign currencies are translated at the exchange
rate ruling at the date of transaction. Monetary assets and
liabilities in foreign currencies are translated at the rates of
exchange ruling at the reporting date. Exchange differences arising
on the settlement or on translating monetary items at rates
different from those at which they were initially recorded are
recognised in administrative expenses in the Statement of
Comprehensive Income in the year in which they arise.
Equity
Equity comprises the following;
Called up share capital
Share capital represents the nominal value of equity shares.
Share premium
Share premium represents the excess over nominal value of the
fair value of consideration received of equity shares, net of
expenses of the share issue.
Accumulated losses
Accumulated losses represent retained profits and losses.
Adoption of new and revised standards and changes in accounting
policies
In the current year the following new and revised Standards and
Interpretations have been adopted by the company. The adoption has
had no impact on the current period however may have an effect on
future periods.
IFRS 3 (Amendments) Reference to conceptual framework 1 January
2022
IAS 16 (Amendments) Property, plant and equipment 1 January
- proceeds before intended use 2022
IAS 37 (Amendments) Onerous contracts - costs of 1 January
fulfilling a contract 2022
IFRIC Amendments to IFRS 1 (subsidiary 1 January
as a first-time adopter), IFRS 2022
9 (fees in the '10 liabilities),
IFRS 16 (lease incentives),
IAS 41 (taxation in the fair
value measurements)
Standards which are in issue but not yet effective
At the date of authorisation of these financial statements, the
following Standards and Interpretations, which have not yet been
applied in these financial statements, were in issue but not yet
effective (and in some cases had not yet been adopted by the United
Kingdom):
IFRS 17 Insurance contracts 1 January
2023
IAS 1 and IFRS Disclosure of accounting policies 1 January
Practice Statement 2023
2
IAS 8 (Amendment) Definition of accounting estimates 1 January
2023
IAS 12 (Amendment) Deferred tax related to assets 1 January
and liabilities arising from 2023
a single transaction
IFRS 16 (Amendment) Liability in a Sale and Leaseback 1 January
2023
IAS 1 (Amendment) Classification of liabilities 1 January
as current or non-current - 2023
deferral of effective date
IAS 1 (Amendment) Non-current liabilities with 1 January
covenants 2023
The directors do not expect that the adoption of the other
Standards listed above will have a material impact on the financial
statements of the Company aside from additional disclosures.
3 Critical accounting estimates and judgements
Many of the amounts included in the financial statements involve
the use of judgement and/or estimates. These judgements and
estimates are based on management's best knowledge of the relevant
facts and circumstances, having regard to prior experience, but
actual results may differ from the amounts included in the
financial statements. Information about such judgements and
estimation is contained in the accounting policy and/or the notes
to the financial statements and the key areas are summarised
below:
Critical judgements in applying accounting policies
-- Revenue recognition . The Company typically enters into a
contract comprising one or more stages for each customer project.
In the application of IFRS 15 "Revenue from Contracts with
Customers" and the accounting policy set out in Note 2 to these
financial statements, significant judgement is required to identify
the individual performance obligations contained within each
contract, particularly when a set-up charge is made relating to the
initial collaboration with the customer to formulate a programme of
development work, or when the pattern of sales invoices does not
align with those stages explicit in the contract.
Many customer contracts contain a non-refundable set up charge
of up to 30% of contract value which becomes payable upon
commencement of the project. This represents the value of the
transfer of knowledge involved in design, planning and preparation
for the work to be done, and for the time and consumables committed
to commence work on the project. As this work is distinct and of
benefit to the customer independent of later stages within the
contract, it is therefore judged to be a separate performance
obligation within the meaning of IFRS 15 and is recognised as
revenue in line with the accounting policy.
The remaining performance obligations are based on the stages
with defined deliverables which are explicitly outlined in the
customer contracts.
During the process of delivering the contract, where delivery is
part way through a stage at the reporting date, an estimate is made
of the amount of revenue to recognise for that stage to reflect the
work performed up to that date. This amount is estimated on a
percentage completion basis.
Critical accounting estimates and assumptions
Deferred Taxation . The Company has accumulated tax losses of
GBP13,000k (2022: GBP10,000k). In principle these losses would
support a deferred tax asset of approximately GBP2,500k (2022:
GBP2,000k). IAS 12 requires that a deferred tax asset relating to
unused tax losses is carried forward to the extent that future
taxable profits will be available. The company is in an investment
phase, expecting to have increased expenditure on R&D and
business development over the next two years which will increase
the tax losses. After the investment period the Board expects the
Company to generate healthy profits but it is difficult at this
stage to reliably estimate the period over which profits may arise
in the future. The Board has therefore determined to not recognise
the asset at the reporting date. This approach does not affect the
future availability of the tax losses for offset against future
profits.
4 Revenue
All of the activities of the Company fall within one business
segment, that of research, development and manufacture of
recombinant proteins and antibodies.
2023 2022
Geographic analysis GBP'000 GBP'000
----------------------- --------- ---------
UK 621 724
Rest of Europe 409 1,394
North America 1,496 2,000
Rest of World 375 681
2,901 4,799
----------------------- --------- ---------
In the year there were three customers (2022: one) to whom sales
exceeded 10% of revenues, those customers together accounted for
GBP1,040k or 36% of revenues (2022: GBP693k or 14.4% of
revenues).
5 Operating loss is stated after charging/(crediting):
2023 2022
GBP'000 GBP'000
-------------------------------------------------- --------- ---------
Employee benefit costs
-wages and salaries 2,201 2,126
-social security costs 247 205
-other pension costs 110 103
-share based payments 35 21
-------------------------------------------------- --------- ---------
2,595 2,455
-------------------------------------------------- --------- ---------
Depreciation of property, plant and
equipment 347 678
Depreciation of property, plant and
equipment (leased) 25 71
Other operating expenses
Rates, utilities and property maintenance 168 100
IT costs 30 16
Fees payable to the Company's auditors
* for the audit of the financial statements 73 40
Raw materials and consumables used 1,129 1,276
Decrease/(increase) in inventories 47 (105)
Patent costs 30 84
Marketing costs 223 115
Gain on foreign exchange (36) (23)
Other expenses 1,139 1,447
Total cost of sales and administrative
expenses 5,770 6,154
-------------------------------------------------- --------- ---------
Included in the costs above is expenditure on research and
development totalling GBP806k (2022: GBP699k). Non-audit fees of
GBP9k (2022: GBP23k) were paid in the year and are included in
other expenses above.
6 Average staff numbers
2023 2022
---------------------------------- ------------ ------------
Monthly Monthly
Avg Number Avg Number
Employed in UK
(including executive directors) 50 53
---------------------------------- ------------ ------------
Non-executive directors 4 5
---------------------------------- ------------ ------------
54 58
---------------------------------- ------------ ------------
7 Remuneration of directors and key senior management
Directors
2023 2022
GBP'000 GBP'000
----------------------- --------- ---------
Emoluments 470 518
Pension contributions 21 22
491 540
----------------------- --------- ---------
Highest paid director
The highest paid director received the following emoluments:
2023 2022
GBP'000 GBP'000
----------------------- --------- ---------
Emoluments 120 153
Pension contributions 7 9
127 162
----------------------- --------- ---------
The highest paid director did not exercise any share option in
the year. (2022: GBPnil).
Key senior management personnel
Key senior management is considered to comprise the directors of
the Company with total remuneration for the year of GBP491k (2022:
GBP540k). Share based payments for the year attributable to key
senior management totalled GBP10k (2022: GBP15k).
8 Finance income and expense
2023 2022
Income GBP'000 GBP'000
-------------------------- --------- ---------
Bank interest receivable 3 1
-------------------------- --------- ---------
2023 2022
Expense GBP'000 GBP'000
-------------------------------------- --------- ---------
Interest expense on other borrowings 4 9
-------------------------------------- --------- ---------
9 Share based payments
At the reporting date the Company had three share based reward
schemes: two schemes under which options were previously granted
and are now closed to future grants and a third scheme in place in
which grants were made in the current year:
-- A United Kingdom tax authority approved scheme for executive directors and senior staff;
-- An unapproved scheme for awards to those, such as
non-executive directors, not qualifying for the approved scheme;
and
-- A United Kingdom tax authority approved scheme for executive
directors and senior staff which incorporates unapproved options
for grants to be made following listing of the Company shares,
"2017 EMI and Unapproved Employee Share Option Scheme".
Options awarded during the year under the 2017 EMI and
Unapproved Employee Share Option Scheme have no performance
conditions other than the continued employment within the Company.
Options vest one, two and three years from the date of grant, which
may accelerate for a change of control. Options lapse if not
exercised within ten years of grant, or if the individual leaves
the Company, except under certain circumstances such as leaving by
reason of redundancy.
The total share-based remuneration recognised in the Statement
of Comprehensive Income was GBP35k (2022: GBP21k). The most recent
options granted in the year were valued using the Black-Scholes
method. The share price on grant used the share price of open
market value, expected volatility of 24.0% and a compound risk free
rate assumed of 3.47% based on historical experience.
2023 2022
Weighted Weighted
average 2023 average 2022
exercise Number exercise Number
price price
GBP GBP
--------------------------- ---------- ---------- ---------- ----------
Outstanding at beginning
of the year 0.478 787,083 0.421 1,266,666
--------------------------- ---------- ---------- ---------- ----------
Granted during the year 0.483 1,745,800 1.275 250,000
Exercised during the year - - 0.288 (404,587)
Lapsed during the year 0.486 (215,000) 1.107 (324,996)
--------------------------- ---------- ---------- ---------- ----------
Outstanding at the end
of the year 0.481 2,317,883 0.478 787,083
--------------------------- ---------- ---------- ---------- ----------
The options outstanding at the end of each year were as
follows:
Expiry Nominal Exercise 2023 2022
share price Number Number
value GBP
---------------- --------- --------- ---------- --------
May 2027 GBP0.04 0.040 103,750 103,750
December 2028 GBP0.04 0.545 648,333 683,333
September 2032 GBP0.04 0.520 300,000 -
September 2032 GBP0.04 0.475 1,265,800 -
---------------- --------- --------- ---------- --------
Total 2,317,883 787,083
--------------------------- --------- ---------- --------
Of the total number of shares outstanding, 752,083 were
exercisable at the reporting date at a weighted average price of
GBP0.48p/share (2022: 787,083 at a weighted average price of
GBP0.48p/share).
10 Income tax (credit)
2023 2022
GBP'000 GBP'000
---------------------------------- --------- ---------
Current tax - UK corporation tax (263) (133)
Income tax credit (263) (133)
---------------------------------- --------- ---------
The difference between loss before tax multiplied by the
standard rate of 19% (2022: 19%) and the income tax credit is
explained in the reconciliation below:
2023 2022
GBP'000 GBP'000
Factors affecting the tax credit for
the year
Loss before tax (2,859) (1,333)
------------------------------------------- ---------- ----------
Loss before tax multiplied by standard
rate of UK corporation tax of 19% (2022:
19%) (545) (253)
------------------------------------------- ---------- ----------
Deferred tax not recognised on current
year losses 545 253
RDEC/R&D tax credit (263) (131)
RDEC/R&D tax credit - adjustment relating
to prior year - (2)
Total income tax credit (263) (133)
------------------------------------------- ---------- ----------
Impact of future tax changes are not expected to materially
impact the position of the Company, and no corporate tax liability
is expected in the subsequent period.
11 Loss per share
2023 2022
GBP'000 GBP'000
----------------------------- --------- ---------
Loss for the financial year (2,596) (1,200)
Loss per share pence pence
Basic (10.0) (4.6)
Diluted (10.0) (4.5)
Number Number
----------------------------------- ----------- -----------
Issued ordinary shares at the end
of the year 26,014,946 26,014,946
Weighted average number of shares
in issue during the year 26,014,946 25,945,780
----------------------------------- ----------- -----------
Basic earnings per share is calculated by dividing the basic
earnings for the year by the weighted average number of shares in
issue during the year. Diluted earnings per share is calculated by
dividing the basic earnings for the year by the diluted weighted
average number of shares in issue inclusive of share options
outstanding at year end.
12 Intangible assets
2023/2022 2022/2021
Software Software
GBP'000 GBP'000
-------------------------- ---------- ----------
Cost
At 1 April 8 8
At 31 March 8 8
----------------------------- ---------- ----------
Accumulated amortisation
At 1 April 8 6
Amortisation charged
in the year - 2
At 31 March 8 8
----------------------------- ---------- ----------
Net book value
At 31 March - -
-------------------------- ---------- ----------
At 31 March - 2
----------------------------- ---------- ----------
Amortisation is included in administrative expenses on the
statement of comprehensive income.
13 Property, plant and equipment
Fixtures,
Right Leasehold Plant fittings
of use improvements & & equipment Total
assets GBP'000 machinery GBP'000 GBP'000
GBP'000 GBP'000
-------------------------- ---------- --------------- ------------ ------------- ----------
Cost
At 1 April 2022 240 814 2,356 301 3,711
Additions - 30 72 12 114
Disposals (226) - (32) (36) (294)
At 31 March 2023 14 844 2,396 277 3,531
-------------------------- ---------- --------------- ------------ ------------- ----------
Accumulated depreciation
At 1 April 2022 210 752 1,891 225 3,078
Depreciation
charged in the
year 25 60 253 34 372
Disposals (226) - (32) (36) (294)
At 31 March 2023 9 812 2,112 223 3,156
-------------------------- ---------- --------------- ------------ ------------- ----------
Net book value
At 31 March 2023 5 32 284 54 375
-------------------------- ---------- --------------- ------------ ------------- ----------
At 31 March 2022 30 62 465 76 633
-------------------------- ---------- --------------- ------------ ------------- ----------
Fixtures,
Right Leasehold Plant fittings
of use improvements & & equipment Total
assets GBP'000 machinery GBP'000 GBP'000
GBP'000 GBP'000
-------------------------- ---------- --------------- ------------ ------------- ----------
Cost
At 1 April 2021 240 784 2,181 247 3,452
Additions - 30 175 54 259
At 31 March 2022 240 814 2,356 301 3,711
-------------------------- ---------- --------------- ------------ ------------- ----------
Accumulated depreciation
At 1 April 2021 139 583 1,446 161 2,329
Depreciation
charged in the
year 71 169 445 64 749
At 31 March 2022 210 752 1,891 225 3,078
-------------------------- ---------- --------------- ------------ ------------- ----------
Net book value
At 31 March 2022 30 62 465 76 633
-------------------------- ---------- --------------- ------------ ------------- ----------
At 31 March 2021 101 201 735 86 1,123
-------------------------- ---------- --------------- ------------ ------------- ----------
Plant & machinery with a net book value of GBP49k is held
under hire purchase agreements or finance leases (2022:
GBP85k).
The carrying value of right of use assets at the reporting date
comprises fixtures, fittings and equipment of GBP6k (2022: GBP34k).
In the prior year right of use assets comprised fixtures, fittings
and equipment and the leased office space.
The depreciation expense is included in administrative expenses
in the statement of comprehensive income in each of the financial
years shown.
14 Investment in subsidiary
The Company has the following investment in a subsidiary:
2023 2022
GBP GBP
-------------------------------------- ----- -----
Fusion Contract Services Limited 1 1
100% subsidiary
Dormant company
1 Springbank Road, Belfast, BT17 0QL
-------------------------------------- ----- -----
Under section 402, group financial statements are not prepared
on the basis that the subsidiary company is dormant and not
material to the financial statements for the purpose of giving a
true and fair view.
15 Inventories
2023 2022
GBP'000 GBP'000
------------------------------- --------- ---------
Raw materials and consumables 539 585
------------------------------- --------- ---------
The cost of inventories recognised as an expense for the year
was GBP1,129k (2022: GBP1,276k).
16 Trade and other receivables
2023 2022
GBP'000 GBP'000
-------------------------------- --------- ---------
Trade receivables 511 900
Loss allowance (151) (124)
-------------------------------- --------- ---------
Trade receivables - net 360 776
Other receivables 72 117
Prepayments and accrued income 258 624
-------------------------------- --------- ---------
690 1,517
-------------------------------- --------- ---------
The fair value of trade and other receivables approximates to
their carrying value.
At the reporting date trade receivables loss
allowance/impairment as follows:
2023 2022
GBP'000 GBP'000
-------------------------------- --------- ---------
Individually impaired 122 71
Expected credit loss allowance 29 53
-------------------------------- --------- ---------
151 124
-------------------------------- --------- ---------
The carrying amount of trade and other receivables are
denominated in the following currencies:
2023 2022
GBP'000 GBP'000
----------- --------- ---------
UK pound 273 664
Euros - 1
US dollar 238 235
511 900
----------- --------- ---------
The expected credit loss allowance has been calculated as
follows:
More
More than More than More than
30 days than 90 days 120 days
Current past due 60 days past past due Total
31 March past due
2023 due
---------------- ---------- ------------ ---------- --------- ------------ --------
Expected
loss rate 1.9% 2.1% 2.7% 4.9% 26.6%
Gross carrying
amount
(GBP'000) 113 87 68 43 78 389
Loss allowance
(GBP'000) 2 2 2 2 21 29
---------------- ---------- ------------ ---------- --------- ------------ --------
More
More than More than More than
30 days than 90 days 120 days
Current past due 60 days past past due Total
31 March past due
2022 due
---------------- ---------- ------------ ---------- --------- ------------ --------
Expected
loss rate 1% 1.1% 1.4% 2.5% 13.8%
Gross carrying
amount
(GBP'000) 304 133 19 - 373 829
Loss allowance
(GBP'000) 3 1 - - 49 53
---------------- ---------- ------------ ---------- --------- ------------ --------
Movements on trade receivables loss allowance is as follows:
GBP'000 GBP'000
---------------------------- -------- --------
At 1 April 2022/2021 53 10
Movement in loss allowance (24) 43
At 31 March 2023/2022 29 53
---------------------------- -------- --------
The creation and release of the loss allowance for trade
receivables has been included in administrative expenses in the
Statement of Profit or Loss and Other Comprehensive Income. Other
receivables are considered to have low credit risk and the loss
allowance recognised during the year was therefore limited to trade
receivables.
The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivables mentioned above. The
Company does not hold any collateral as security.
17 Trade and other payables
2023 2022
GBP'000 GBP'000
--------------------------------- --------- ---------
Trade payables 480 466
Social security and other taxes 136 68
Other payables 51 47
Accruals and deferred income 177 561
844 1,142
--------------------------------- --------- ---------
The fair value of trade and other payables approximates to their
carrying value.
Invest Northern Ireland hold a mortgage dated 9 December 2009
for securing all monies due or to become due from the Company on
any account. At the reporting date a balance of GBP45k (2022:
GBPnil) was due to Invest Northern Ireland.
18 Borrowings
Lease liabilities Hire Purchase
GBP'000 Contracts Total
GBP'000 GBP'000
-------------------------- ------------------ -------------- ----------
At 1 April 2022 27 42 69
Additions - 69 69
Interest charged in year 3 1 4
Repayments (24) (43) (67)
-------------------------- ------------------ -------------- ----------
At 31 March 2023 6 69 75
-------------------------- ------------------ -------------- ----------
Amounts due in less than
1 year 5 30 35
Amounts due after more
than 1 year 1 39 40
-------------------------- ------------------ -------------- ----------
6 69 75
-------------------------- ------------------ -------------- ----------
Lease Hire Purchase
liabilities Contracts Total
GBP'000 GBP'000 GBP'000
-------------------------- ------------- -------------- ----------
At 1 April 2021 100 130 230
Interest charged in year 4 5 9
Repayments (77) (93) (170)
-------------------------- ------------- -------------- ----------
At 31 March 2022 27 42 69
-------------------------- ------------- -------------- ----------
Amounts due in less than
1 year 24 42 66
Amounts due after more
than 1 year 3 - 3
-------------------------- ------------- -------------- ----------
27 42 69
-------------------------- ------------- -------------- ----------
All borrowings are denominated in UK pounds. Using a discount
rate of 8.5% per annum the fair value of borrowings at the
reporting date is GBP69k (2022: GBP65k discounted at 5.5%).
Borrowings are secured by a fixed and floating charge over the
whole undertaking of the Company, its property, assets and rights
in favour of Northern Bank Ltd trading as Danske Bank.
19 Provisions for other liabilities and charges
2023 2022
GBP'000 GBP'000
---------------------------- --------- ---------
Due after more than 1 year 20 20
---------------------------- --------- ---------
Leasehold dilapidations relate to the estimated cost of
returning a leasehold property to its original state at the end of
the lease in accordance with the lease terms. The Company's
premises are held under a lease which is renewed annually. The
costs of dilapidations would be incurred on vacating the
premises.
20 Financial instruments
The Company is exposed to risks that arise from its use of
financial instruments. This note describes the Company's
objectives, policies and processes for managing those risks and
methods used to measure them. There have been no substantive
changes in the Company's exposure to financial instrument risks and
the methods used to measure them from previous years unless
otherwise stated in this note.
The principal financial instruments used by the Company, from
which the financial instrument risk arises, are trade receivables,
cash and cash equivalents and trade and other payables. The fair
values of all the Company's financial instruments are the same as
their carrying values.
Financial instruments by category
Financial instruments categories are as follows:
Amortised
cost
As at 31 March 2023 GBP'000
--------------------------- ----------
Trade receivables 360
Other receivables 72
Accrued income 26
Cash and cash equivalents 195
------------------------------ ----------
Total 653
------------------------------ ----------
Amortised
cost
As at 31 March 2022 GBP'000
--------------------------- ------------
Trade receivables 776
Other receivables 117
Accrued income 397
Cash and cash equivalents 2,049
--------------------------- ------------
Total 3,339
--------------------------- ------------
Other financial
liabilities
at amortised
cost
As at 31 March 2023 GBP'000
----------------------- ----------------
Trade payables 480
Other payables 100
Accruals 127
Borrowings 75
----------------------- ----------------
Total 782
----------------------- ----------------
Other financial
liabilities
at amortised
As at 31 March 2022 cost
GBP'000
----------------------- ----------------
Trade payables 466
Other payables 47
Accruals 279
Borrowings 69
------------------------- ----------------
Total 861
------------------------- ----------------
Capital management
The Company's objectives when managing capital are to safeguard
its ability to continue as a going concern in order to provide
returns for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of
capital.
In order to maintain or adjust the capital structure, the
Company may issue new shares or sell assets to provide working
capital.
Consistent with others in the industry at this stage of
development, the Company has relied on issuing new shares and cash
generated from operations.
General objectives, policies and processes - risk management
The Company is exposed through its operations to the following
financial instrument risks: credit risk; liquidity risk and foreign
currency risk. The policy for managing these risks is set by the
Board following recommendations from the Chief Financial Officer.
The overall objective of the Board is to set policies that seek to
reduce risk as far as possible without unduly affecting the
Company's competitiveness and flexibility. The policy for each of
the above risks is described in more detail below.
Credit risk
Credit risk arises from the Company's trade and other
receivables, and from cash at bank. It is the risk that the
counterparty fails to discharge their obligation in respect of the
instrument.
The Company is mainly exposed to credit risk from credit sales.
It is Company policy to assess the credit risk of new customers
before entering contracts. Also, for certain new customers the
Company will seek payment at each stage of a project to reduce the
amount of the receivable the Company has outstanding for that
customer.
At the year end the Company's bank balances were all held with
Northern Bank Ltd trading as Danske Bank (Moody's rating P-1).
Liquidity risk
Liquidity risk arises from the Company's management of working
capital, and is the risk that the Company will encounter difficulty
in meeting its financial obligations as they fall due.
At each Board meeting, and at the reporting date, the cash flow
projections are considered by the Board to confirm that the Company
has sufficient funds and available funding facilities to meet its
obligations as they fall due.
The table below analyses the company's financial liabilities
into relevant maturity groupings based on their contractual
maturities. The amounts presented are the undiscounted cash
flows.
Less than 6 to 12 Between Between
6 months months 1 and 2 2 and 5
years years
GBP000 GBP000 GBP000 GBP000
31 March 2023
----------------- ---------- -------- --------- ---------
Trade and other 716 - - -
payables
Accruals 127 - - -
Borrowings - 35 40 -
---------- -------- --------- ---------
843 35 40 -
31 March 2022
----------------- ---------- -------- --------- ---------
Trade and other 581 - - -
payables
Accruals 279 - - -
Borrowings - 66 3 -
---------- -------- --------- ---------
860 66 3 -
Foreign currency risk
Foreign currency risk is the risk that the fair value of future
cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.
The Company seeks to transact the majority of its business in
its reporting currency (GBPSterling). However, many customers and
suppliers are outside the UK and a proportion of these transact
with the Company in US Dollars and Euros. For that reason, the
Company operates current bank accounts in US Dollars and Euros as
well as in its reporting currency. To the maximum extent possible
receipts and payments in a particular currency are made through the
bank account in that currency to reduce the amount of funds
translated to or from the reporting currency. Cash flow projections
are used to plan for those occasions when funds will need to be
translated into different currencies so that exchange rate risk is
minimised.
If the exchange rate between Sterling and the Dollar or Euro had
been 10% higher/lower at the reporting date the effect on profit
and equity would have been approximately GBP34,000 (2022:
GBP32,000) higher/lower and immaterial given the value of the
balance of GBP158 (2022: GBP5,000) higher/lower respectively.
21 Called up share capital
2023 2022
GBP'000 GBP'000
-------------------------------------------------------------- --------- ---------
Allotted, called up and fully paid
* 26,014,946 (2022: 26,014,946) Ordinary shares of
GBP0.04 1,040 1,040
-------------------------------------------------------------- --------- ---------
The company is authorised to issue 33,809,960 shares
No dividends were paid (2022: GBPnil). The directors do not
recommend payment of a final dividend (2022: GBPnil).
22 Capital commitments
At 31 March 2023 the Company had contracted for but not incurred
capital expenditure of GBPnil (2022: GBP17,000).
23 Retirement benefits obligations
The Company operates a defined contribution scheme, the assets
of which are managed separately from the Company. During the year
the Company charged GBP96,000 to the Statement of Profit or Loss
and Other Comprehensive Income (2022: GBP103,000) in respect of
Company contributions to the scheme. At the reporting date there
was GBP19,000 (2022: GBP18,000) payable to the scheme and included
in other payables.
24 Transactions with related parties
The Company had the following transactions with related parties
during the year:
Invest Northern Ireland ("Invest NI") is a shareholder in the
Company. The Company received invoices for rent and estate services
amounting to GBP79,000 (2022: GBP78,000). A balance of GBP45,000
(2022: GBPnil) was due and payable to Invest NI at the reporting
date.
25 Ultimate controlling party
There is no ultimate controlling party.
26 Post balance sheet events
Since the reporting date the Company has raised net proceeds of
GBP1.5 million from the issue of ordinary shares. Additionally, the
Company has undergone a restructuring process contributing to a
reduction in costs in the current financial year of approximately
GBP1.6m. These cost savings were primarily achieved due to staff
redundancies and resulting payroll cost savings.
Subsequent to the reporting date, the Company has introduced a
new revenue stream from the AI/ML-AB service offering.
27 Reconciliation of loss to EBITDA
2023 2022
GBP'000 GBP'000
------------------------------- --------- ---------
Loss before tax (2,859) (1,333)
------------------------------- --------- ---------
Finance income (3) (1)
Finance expense 4 9
Depreciation and amortisation 372 751
------------------------------- --------- ---------
EBITDA (2,486) (574)
------------------------------- --------- ---------
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END
FR LPMBTMTTTTAJ
(END) Dow Jones Newswires
September 29, 2023 02:00 ET (06:00 GMT)
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