Source - LSE Regulatory
RNS Number : 1326N
Oxford BioDynamics PLC
28 January 2021
 

28 January 2021

 

Oxford Biodynamics Plc

("OBD" or the "Company" and, together with its subsidiaries, the "Group")

 

FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

AND

NOTICE OF ANNUAL GENERAL MEETING

 

Oxford BioDynamics Plc (AIM: OBD), a biotechnology company developing precision medicine tests for personalized healthcare based on the EpiSwitch3D genomics platform, today announces its final results for the year ended 30 September 2020.

 

Corporate highlights

§ Board restructure and additions to senior team to focus on commercialization, especially in the US, including appointment of Dr Jon Burrows as CEO and Board Director (March 2020)

§ Group's Chief Scientific Officer, Dr Alexandre Akoulitchev, appointed to represent OBD on the Foundation for the National Institutes of Health (FNIH) Biomarkers Consortium Steering Committees in Oncology, Inflammation & Immunity, and Neuroscience in Bethesda, MD, USA (April 2020)

§ Appointment of Professor Iain McInnes to the Company's Scientific Advisory Board (October 2019)

 

Operational highlights

§ Inclusion of the Group's EpiSwitch™ technology in the GETAFIX clinical study, in collaboration with the University of Glasgow, to perform prognostic and predictive profiling of COVID-19 patients (April 2020)

§ Publication in peer-reviewed Translational Medicine (Communications) of the development of the first successful blood-based assay for prognostic stratification and disease subtyping in diffuse large B-cell lymphoma (DLBCL), in collaboration with Roche and Genentech (March 2020)

§ Signature of master services agreement with top US pharmaceutical company (December 2019)

§ Presentation at SITC of significant results of the utility of OBD's EpiSwitch™ in predicting response to immuno-oncology (IO) treatments, co-authored with Pfizer, EMD Serono and Mayo Clinic, offering significant commercial potential (November 2019)

§ Recruitment of first patient to the Mitsubishi Tanabe Pharma America (MTPA)-sponsored REFINE-ALS clinical study, in which EpiSwitch™ biomarkers are used to assess the rate of amyotrophic lateral sclerosis (ALS) disease progression (October 2019)

§ Further expansion of IP portfolio covering the EpiSwitch™ platform, now including 17 patent families

 

Financial highlights

§ Revenue of £0.5m (FY19: £0.9m)

§ Operating loss of £5.0m (FY19: £3.7m)

§ Cash and term deposits of £11.5m as at 30 September 2020 (FY19: £15.5m)

 

Post-period end highlights

§ Announcement of expanded strategic focus beyond biomarker discovery to development and commercialization of laboratory tests (December 2020)

§ Appointment of Matthew Wakefield as Non-Executive Chairman (December 2020)

§ Receipt of first samples from REFINE-ALS clinical study (December 2020)

 

Commenting on the results, Jon Burrows, Chief Executive Officer of Oxford BioDynamics, said: 

"2020 was a year of transition and development for OBD. We have focused on readying the Company for the near-term commercialization of its 3D genomics technology platform, EpiSwitch™.

 

"As we announced during the year, our R&D project revenues were affected by the COVID-19 pandemic, but we were pleased to continue working with several partners throughout the year and to plan for the expansion of our strategic focus, which we announced in December.

 

"In the latter part of the year, we concentrated our efforts on the development of our COVID-19 severity test. Completing this in under six months was a great success for the whole OBD team. We begin 2021 ready to launch this, our first proprietary test, in the US market, with a pipeline of molecular diagnostic tests developed using our EpiSwitch™ technology platform, ready to be deployed behind it. We look forward to sharing more progress over the rest of the year."

 

-Ends-

 

Notice of Annual General Meeting

The Company's Annual General Meeting will be held at Oxford Works, Building 4650 Kingsgate, Oxford Business Park, Oxford, OX4 2SU on 24 March 2021 at 12.00 pm.

 

The information included in this announcement is extracted from the Annual Report, which was approved by the Directors on 27 January 2021. Defined terms used in the announcement refer to terms as defined in the Annual Report unless the context otherwise requires. This announcement should be read in conjunction with, and is not a substitute for, the full Annual Report.

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

 

For further details please contact:

 

Oxford BioDynamics Plc

+44 (0)1865 518910

Jon Burrows, CEO

Paul Stockdale, CFO

 

 

 

Shore Capital - Nominated Adviser and Broker

+44 (0)20 7408 4090

Advisory: Edward Mansfield / John More

Broking: Fiona Conroy

 

 

 

Instinctif Partners

+44 (0)20 7457 2020

Melanie Toyne-Sewell / Agnes Stephens /
Katie Duffell
/ Nathan Billis

OxfordBioDynamics@instinctif.com

 

Notes for Editors

About Oxford BioDynamics Plc

Oxford BioDynamics Plc (AIM: OBD) is a global biotechnology company, advancing personalized healthcare by developing and commercializing precision medicine tests for life-changing diseases.

The Company has developed a proprietary 3D genomic biomarker platform, EpiSwitch™, which can build molecular diagnostic classifiers for prediction of response to therapy, patient prognosis, disease diagnosis and subtyping, and residual disease monitoring in a wide range of indications.

Oxford BioDynamics has participated in more than 40 partnerships with big pharma and leading institutions including Pfizer, EMD Serono, Genentech, Roche, Biogen, Mayo Clinic, Massachusetts General Hospital and Mitsubishi Tanabe Pharma.

The Company has created a valuable technology portfolio, including biomarker arrays, molecular diagnostic tests, bioinformatic tools for 3D genomics and an expertly curated 3D genome knowledgebase comprising hundreds of millions of data points from over 10,000 samples in more than 30 human diseases. 

OBD is headquartered in Oxford, UK and is listed on the London Stock Exchange's AIM market. It also has a commercial team in the US and a reference laboratory in Penang, Malaysia.

For more information, please visit the Company's website, www.oxfordbiodynamics.com, or follow on Twitter or LinkedIn.

About EpiSwitch

The 3D configuration of the genome plays a crucial role in gene regulation. By mapping this architecture and identifying abnormal configurations, EpiSwitch™ can be used to diagnose patients or determine how individuals might respond to a disease or treatment.

Built on over 10 years of research, EpiSwitch™ is Oxford Biodynamics' award-winning, proprietary platform that enables screening, evaluation, validation and monitoring of 3D genomic biomarkers. The technology is fully developed, based on testing of over 10,000 samples in 30 disease areas, and reduced to practice.

In addition to stratifying patients with respect to anticipated clinical outcome, EpiSwitch™ data offer insights into systems biology and the physiological manifestation of disease that are beyond the scope of other molecular modalities. The technology has performed well in academic medical research settings and has been validated through its integration in biomarker discovery and clinical development with big pharma.

Oxford BioDynamics is leveraging its leading technology to develop a pipeline of tests in a wide range of indications, such as COVID-19 severity, immuno-oncology, neurodegenerative and autoimmune diseases.

 

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Group's financial position, business strategy, plans and objectives of management for future operations, and any statements preceded by, followed by or that include forward-looking terminology such as the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "can", "may", "anticipates", "would", "should", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, readers are cautioned not to rely on any forward-looking statement.

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 Strategic Overview

2020 has been an unusual and, for many individuals and businesses, a difficult year. At OBD, whilst we felt the effect of slowdowns across the pharma/biotech industry as a result of the COVID-19 pandemic, we have been able to continue working throughout the year, without recourse to UK or US government assistance. Most importantly, the Company has pivoted from being focused predominantly on research and development to making commercialization of its technology and product development our absolute priorities.

Since my appointment in March 2020, with the OBD Board and Senior Management Team, I have spent time assessing the Group's business, the EpiSwitch™ technology, identifying ways in which we can unlock the considerable growth potential and bring the technology pipeline the Company has developed rapidly into the precision medicine market. Whilst continuing to drive our original strategy to work with big pharma on biomarker development projects, we have also been expanding OBD's strategic focus to include the development of several new sales channels, beginning with the planned launch of the Company's COVID-19 "severity of response" test. We provide a summary of the work achieved and value created in the rest of this review.

Commercial developments

COVID-19-related developments

In April 2020, the Company announced selection of the EpiSwitch™ platform for prognostic and predictive profiling of COVID-19 patients in the GETAFIX clinical study, in collaboration with the University of Glasgow. As well as seeking a biomarker profile to predict patients' likely response to the anti-viral treatment Favipiravir, OBD announced plans to develop a prognostic disease severity classifier, to help identify patients who may be at increased risk of serious illness or death as a result of their immune response to COVID-19 infection.

In June 2020, the Company started to use its own resources to procure a representative international set of COVID-19 patient samples from cohorts in the UK, USA, and Latin America. Applying the Company's know-how with the EpiSwitch™ platform, a proprietary severity of response test for COVID-19 was developed by the end of the year. The goal of the test is to provide crucial information to address the open medical questions regarding an individual's risk of disease severity and need for hospitalization, including intensive care unit support. Development of the test was completed in less than six months and we expect it to be initially launched in the US concierge medicine market later in Q1 of 2021, a great achievement for the OBD team.

Immuno-oncology (IO)-related developments

In recent years, the Company has regularly reported on the growing acknowledgment of the potential for its EpiSwitch™ biomarkers to benefit IO drug development programmes and cancer patients. The aim is to enable clinicians to identify patients who are unlikely to respond to IO treatment, across a wide spectrum of indications and treatment combinations, helping to match potential responders to the right IO drugs.

This year has seen further progress for OBD in the IO field. As well as ongoing work with a major commercial customer and the presentation of compelling results from EpiSwitch™ biomarker discovery projects with industry partners, in December 2020, the Group announced its plan to develop and launch a proprietary predictive immune response profile for IO checkpoint inhibitor treatments. The aim of the EpiSwitch™ Universal IO response test is to help physicians stratify complete and partial responders in advance of treatment, enabling better treatment options for each individual.

Biomarker development projects

In December 2019, the Group entered into a master service agreement for the development of predictive EpiSwitch™ biomarkers with a top US pharmaceutical company. This agreement built on OBD's proven ability to develop predictive biomarkers for response in IO, granting the customer access to OBD's EpiSwitch™ technology for use in the development of predictive biomarkers. Work under this agreement has progressed well despite the COVID-19 pandemic, with several hundred clinical trial samples successfully analysed in our UK laboratory. We continue to work under the master service agreement in the current year.

Scientific developments

In October 2019, the first patient was recruited to the REFINE-ALS study, led by Massachusetts General Hospital (MGH) Neurological Clinical Research Institute (NCRI) and sponsored by Mitsubishi Tanabe Pharma America (MTPA). This study is designed to identify and measure specific biomarkers to act as a complementary diagnostic for people being treated with MTPA's already approved drug for amyotrophic lateral sclerosis (ALS). In the study, OBD's EpiSwitch™ biomarkers will be assessed alongside other biomarker modalities, as well as clinical assessments. Recruitment to the study was affected by the COVID-19 pandemic through much of 2020, although as reported in December 2020, patient samples are now being received by the Company, enabling work to continue.

In November 2019, the Company's EpiSwitch™ technology featured in two poster presentations at The Society for Immunotherapy of Cancer's (SITC) 34th Annual Meeting. The presentations, co-authored with collaborating scientists from EMD Serono, Pfizer, Oxford BioDynamics and the Mayo Clinic, showed that biomarkers identified by EpiSwitch™ using blood samples from patients treated with immune checkpoint inhibitors enabled robust exclusion of non-responders across cancer indications and therapeutic combinations. The data also provided asset-specific classifiers with high positive predictive value and had the potential to enable IO drug development programmes to advance with smaller patient cohorts.

In January 2020, further evidence of the applicability of EpiSwitch™-derived biomarkers across species was presented at American Association for Cancer Research (AACR) Conference on Advances in Liquid Biopsies, in Miami, Florida.  In work conducted in collaboration with the University of Minnesota Department of Veterinary Clinical Sciences, Animal Cancer Care and Research Program, College of Veterinary Medicine and Masonic Cancer Center, OBD utilized its proprietary datasets of Episwitch™ biomarkers associated with lymphoma in humans, successfully translating the markers from humans into dogs. A new biomarker signature using whole blood from a cohort of dogs with lymphoma was developed and validated on a second cohort. These results highlight the potential application of non-invasive EpiSwitch™ biomarkers in new therapeutic developments, including in the veterinary industry.

In March 2020, the results of OBD's work in collaboration with Roche and Genentech to develop a blood-based EpiSwitch™ signature for non-invasive prognostic stratification of Diffuse large B-cell lymphoma (DLBCL) patients were published in the peer-reviewed journal Translational Medicine (Communications). The results of the study were striking, showing that the EpiSwitch™ DLBCL biomarker signature was accurate in classifying patient subtypes, correctly predicting clinical outcome with a high level of statistical significance and outperforming a number of current industry standard gene expression-based assays.

In April 2020, the Group's Chief Scientific Officer, Dr Alexandre (Sasha) Akoulitchev, was appointed to represent OBD on three Steering Committees of the FNIH Biomarkers Consortium, in Oncology, Inflammation & Immunity, and Neuroscience, in Bethesda, MD, USA. The Biomarkers Consortium is a public-private biomedical research partnership managed by the FNIH that endeavours to discover, develop, and seek regulatory approval for biomarkers, to support new drug development, preventive medicine, and medical diagnostics. The members of the Steering Committees represent a variety of sectors, including academia, government, industry and not-for-profit/advocacy organizations and are responsible for identifying and moving forward promising biomarker projects for implementation by the Consortium. Sasha's appointment to the prestigious Steering Committees represents a major recognition of his expertise in the field and has already provided valuable opportunities to share the application of OBD's EpiSwitch™ platform in this highly respected scientific forum.

IP portfolio development

At OBD we have developed a global intellectual property portfolio as leaders in the 3D genomics space. We continue to grow and maintain our intellectual property in terms of a broad and multi-layered patent strategy, trade secrets and know-how, trademarks, and branding.

To date we have patents filed or granted in 17 separate families, most recently the granting of a second US patent: "Methods of Detecting Long Range Chromosomal Interactions" International Application. In November 2020, EpiSwitch™ was granted as an OBD-owned trademark by the US Patent and Trademark Office.

 

New leadership with industry experience and US commercial focus

 

I joined the Group as Chief Executive Officer on 23 March 2020 and spent the initial months of my tenure reviewing the Group's position and planning how best to strengthen the Group's commercial focus. The first step in this plan has been the recruitment of new team members with significant US operational, commercial, and marketing experience. We will make further additions to our US-based team during the first quarter of 2021 to support the launch of our COVID-19 severity and subsequent Universal IO response tests.

We have also added further scientific expertise. Earlier, in October 2019, we appointed Professor Iain McInnes CBE to the Company's Scientific Advisory Board. Iain is the Director of the Institute of Infection, Immunity, and Inflammation, Muirhead Professor of Medicine and Professor of Rheumatology at the University of Glasgow. OBD has collaborated with Professor McInnes and his teams on several successful research projects since 2014, including our participation in the GETAFIX COVID-19-related clinical study mentioned above.

Post-year end, we have announced two significant changes to the Board. We appointed Matthew Wakefield as Non-Executive Chairman on 14 December 2020, taking the place of Dr Peter Pack. Matthew brings significant experience of financial markets to the role, with a 27-year career in the City in fund management and investment banking. He has also been a long-time supporter of the Company and already has a deep understanding of its business.

In addition, our co-founder and former Chief Executive Officer, Christian Hoyer Millar announced his retirement from the Board and the Company at the end of 2020. Christian has been a major force in championing OBD's technology and the strong ties it has built with big pharma and academia over the last 12 years. On behalf of the Board, I would like to thank both Peter and Christian for their contribution to the Company and wish them both every future success.

Summary and outlook

Despite the tribulations of the pandemic, OBD has made significant strategic and organizational progress over the year. We enter 2021 with an expanded strategic focus, team, and infrastructure to drive near-term commercialization of the EpiSwitch ™ technology, via multiple commercial pathways, beginning with our COVID-19 severity test. The next anticipated launch, later in 2021, will be the proprietary EpiSwitch™ Universal IO response test.

We will also continue to identify and develop further proprietary products for which there is commercial demand, building on our existing expertise in indications such as rheumatoid arthritis, lymphoma, cancer, and veterinary medicine. Finally, our biomarker arrays and 3D genome bioinformatics tools will be made commercially available to the R&D market and we will continue to work closely with big pharma to leverage the insights of our 3D genome knowledgebase.

To support the development and launch of these exciting products alongside our ongoing work with commercial and other partners, we intend to continue to expand our team and infrastructure.

I would like to thank our shareholders for their continued support of the Company and look forward to reporting on our anticipated progress in 2021.

 

Dr Jon Burrows
Chief Executive Officer
Oxford BioDynamics Plc

 

FINANCIAL REVIEW

 

Overview

 

During the year ended 30 September 2020, OBD focused on organizational and strategic development for the commercialization of its EpiSwitch™ technology, strengthening its Board and team. The Group was also engaged in continuing contracts with global pharmaceutical and biotechnology companies and other commercial partners, collaborating with research institutions, investing in internal proprietary R&D projects, and further developing its IP portfolio.

 

Financial performance

 

Revenue in the year ended 30 September 2020 was £0.46m (2019: £0.91m), comprising services fees received for commercial biomarker projects with pharmaceutical, biotechnology and other commercial companies and collaborations with research institutions (the prior year also included revenue in respect of licence fees from agreements for the use of biomarkers). As a result of the COVID-19 pandemic, there were delays to a number of projects and curtailment of regular business development activity during the year, which led to lower than originally expected revenues.

Operating expenses (excluding share option charges) were £5.2m in the year ended 30 September 2020 (2019: £4.4m). Broadly, the £0.8m increase in operating expenses resulted from £0.63m in additional staff costs (reflecting, as in the prior year, the impact of new senior staff, a full year's cost for staff recruited during the prior year and other general pay increases), £0.15m increase in non-staff R&D costs, and £0.08m in increased depreciation and amortization costs. These increases were offset by a reduction in general and administrative costs of £0.10m which were affected by the accounting treatment of property rent costs on the adoption of IFRS 16 "Leases" as well as reductions in other costs as a result of COVID-19-related travel restrictions. This measure of operating expenses (excluding share option charges) is quoted because it provides a better indicator of the costs of the Group's continuing operations. Share option charges are non-cash expenses that do not necessarily correlate with the Group's underlying cost base. Share option charges are shown in the consolidated income statement. Operating loss for the Group was £4.95m (2019: £3.72m).

Financial income of £0.12m related to interest receivable, which was reduced compared to the prior year as a result of both lower balances and lower interest rates (2019: £0.34m in interest receivable and foreign exchange gains).

Financial expenses of £0.08m (2019: £nil) included interest payable in respect of property leases accounted for under IFRS 16 "Leases" and foreign exchange losses.

The net taxation credit of £0.60m in the year (2019: £0.59m) represents tax relief on research and development expenditure during the period of £0.61m (2019: £0.61m), offset by a foreign tax charges arising in the Group's main subsidiaries. The Group has not recognized any deferred tax assets in respect of trading losses arising in the current or prior financial periods.

Net loss for the year was £4.31m (2019: £2.80m). Loss per share was 4.7 pence (2019: 3.0 pence).

 

Financial position

 

Cash and term deposits at 30 September 2020 totalled £11.5m (2019: £15.5m), the increased outflow compared to the prior year mainly resulting from lower receipts from customers.

Total assets at 30 September 2020 were £15.35m (2019: £18.79m), reflecting increases in tangible and intangible fixed assets and inventory as well as reductions in cash and debtors over the year.

Total liabilities increased to £1.77m at 30 September 2020 (2019: £1.20m) driven mainly by the recognition of lease liabilities under IFRS 16, with trade creditors, accruals and contract liabilities broadly similar to the prior year.

 

Cash flow

 

The Group has continued to exercise close control over cash expenditure during the year. Net cash used in operating activities for the year ended 30 September 2020 was £3.40m (2019: £2.27m). Net cash generated by investing activities was £4.58m (2019: net cash used of £11.19m). The investing activities cashflow figure includes the effect of placing funds into term deposits with an initial maturity of between three and twelve months and the subsequent maturity of those deposits. In the current year there was a net inflow of £4.91m arising from maturing term deposits (2019: outflow as a result of increases in term deposits of £10.3m). Other investing cashflows reflected investment in intangible and tangible fixed assets, offset by interest receipts and, in the prior year, the Group's investment in Holos Life Sciences (Singapore) Pte Ltd. Net cash used in financing activities was £0.18m, being property lease payments accounted for the first time this year under IFRS 16 as described in Note 2 (2019: net cash generated of £0.24m, received on the exercise of share options).

Overall, there was a net decrease in cash and term deposits for the year ended 30 September 2020 of £3.99m (2019: decrease of £2.79m) including exchange losses on opening non-sterling denominated deposits of £0.08m (2019: gains of £0.14m).

 

Paul Stockdale
Chief Financial Officer

 

CONSOLIDATED INCOME STATEMENT
YEAR ENDED 30 SEPTEMBER 2020

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

£000

 

£000

 

Continuing operations

Note

 

 

 

 

Revenue

3

456

 

907

 

Research & development costs (excluding staff costs)

 

(622)

 

(468)

 

Staff costs

 

(2,747)

 

(2,117)

 

General & other admin costs

 

(1,321)

 

(1,423)

 

Share option charges

 

(253)

 

(274)

 

Depreciation and amortisation

 

(467)

 

(387)

 

Other operating income

 

3

 

39

 

Operating loss

 

(4,951)

 

(3,723)

 

 

 

 

 

 

 

Finance income

 

121

 

337

 

Finance costs

 

(80)

 

-

 

Loss before tax

 

(4,910)

 

(3,386)

 

 

 

 

 

 

 

Income tax

 

597

 

586

 

Loss for the year from continuing operations

5

(4,313)

 

(2,800)

 

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

 

  Owners of the Company

 

(4,313)

 

(2,800)

 

  Non-controlling interest

 

-

 

-

 

 

 

(4,313)

 

(2,800)

 

Earnings / (loss) per share

 

 

 

 

 

  From continuing operations

 

 

 

 

 

  Basic and diluted (pence per share)

6

(4.7)

 

(3.0)

 

 

 

 

 

 

 

 

STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 30 SEPTEMBER 2020

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

£000

 

£000

 

 

Note

 

 

 

 

Loss for the year

5

(4,313)

 

(2,800)

 

Exchange differences on translation of foreign operations that may be reclassified to the income statement

 

(11)

 

26

 

Total comprehensive income for the year

 

(4,324)

 

(2,774)

 

Total comprehensive income attributable to:

 

 

 

 

 

  Owners of the Company

 

(4,323)

 

(2,774)

 

  Non-controlling interest

 

(1)

 

-

 

 

 

(4,324)

 

(2,774)

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Assets

Note

 

 

 

 

Non-current assets

 

 

 

 

 

Intangible fixed assets

7

869

 

555

 

Property, plant and equipment

8

700

 

891

 

Right-of-use assets

9

480

 

-

 

Deferred tax asset

 

-

 

-

 

Investments accounted for using the equity method

10

422

 

422

 

Total non-current assets

 

2,471

 

1,868

 

Current assets

 

 

 

 

 

Inventories

 

323

 

243

 

Trade and other receivables

 

1,053

 

1,183

 

Fixed-term deposits

 

5,387

 

10,300

 

Cash and cash equivalents

 

6,119

 

5,198

 

Total current assets

 

12,882

 

16,924

 

Total assets

 

15,353

 

18,792

 

Equity and liabilities

 

 

 

 

 

Capital and reserves

 

 

 

 

 

Share capital

12

926

 

926

 

Share premium

 

16,740

 

16,740

 

Translation reserve

 

193

 

203

 

Share option reserve

 

3,018

 

2,788

 

Retained earnings

 

(7,314)

 

(3,082)

 

Equity attributable to owners of the Company

 

13,563

 

17,575

 

Non-controlling interest

 

18

 

19

 

Total equity

 

13,581

 

17,594

 

Current liabilities

 

 

 

 

 

Trade and other payables

 

1,102

 

1,081

 

Lease liabilities

11

130

 

-

 

Provisions

 

42

 

-

 

Current tax liabilities

 

13

 

25

 

Total current liabilities

 

1,287

 

1,106

 

Non-current liabilities

Lease liabilities

 

11

 

411

 

 

-

 

Provisions

 

65

 

92

 

Deferred tax

 

9

 

-

 

Total non-current liabilities

 

485

 

92

 

Total liabilities

 

1,772

 

1,198

 

Total equity and liabilities

 

15,353

 

18,792

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 30 September 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

 capital

Share premium

Transla-

tion

reserve

Share

option

reserve

Retained

earnings

Attribu-

table to

share-

holders

Non-con-

trolling

interest

Total   

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

926

 

16,740

 

203

 

2,788

 

(3,082)

 

17,575

 

19

 

17,594

 

Adjustment arising on adoption of IFRS 16

-

 

-

 

-

 

-

 

58

 

58

 

-

 

58

 

At 1 October 2019 (adjusted)

926

 

16,740

 

203

 

2,788

 

(3,024)

 

17,633

 

19

 

17,652

 

Loss for the year

-

 

-

 

-

 

-

 

(4,313)

 

(4,313)

 

-

 

(4,313)

 

Other comprehensive income for the period

-

 

-

 

(10)

 

-

 

-

 

(10)

 

(1)

 

(11)

 

Total comprehensive income for the period

-

 

-

 

(10)

 

-

 

(4,313)

 

(4,323)

 

(1)

 

(4,324)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share option credit

-

 

-

 

-

 

253

 

-

 

253

 

-

 

253

 

Lapse of vested share options

-

 

-

 

-

 

(23)

 

23

 

-

 

-

 

-

 

At 30 September 2020

926

 

16,740

 

193

 

3,018

 

(7,314)

 

13,563

 

18

 

13,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 30 September 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share

 capital

Share premium

Transla-

tion

reserve

Share

option

reserve

Retained

earnings

Attribu-

table to

share-

holders

Non-con-

trolling

interest

Total   

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2018

925

 

16,696

 

177

 

2,704

 

(472)

 

20,030

 

19

 

20,049

 

Loss for the year

-

 

-

 

-

 

-

 

(2,800)

 

(2,800)

 

-

 

(2,800)

 

Other comprehensive income for the period

-

 

-

 

26

 

-

 

-

 

26

 

-

 

26

 

Total comprehensive income for the period

-

 

-

 

26

 

-

 

(2,800)

 

(2,774)

 

-

 

(2,774)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares

1

 

44

 

-

 

-

 

-

 

45

 

-

 

45

 

Share issue costs

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Share option credit

-

 

-

 

-

 

274

 

-

 

274

 

-

 

274

 

Exercise of share options

-

 

-

 

-

 

(30)

 

30

 

-

 

-

 

-

 

Lapse of vested share options

-

 

-

 

-

 

(160)

 

160

 

-

 

-

 

-

 

At 30 September 2019

926

 

16,740

 

203

 

2,788

 

(3,082)

 

17,575

 

19

 

17,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 30 SEPTEMBER 2020

               

 

2020

 

2019

 

 

 

£000

 

£000

 

 

Note

 

 

 

 

Loss before tax for the financial year

5

(4,910)

 

(3,386)

 

Adjustments to reconcile loss for the year to net operating cash flows:

 

 

 

 

 

Net interest

 

(102)

 

(196)

 

(Profit) on disposal of property, plant and equipment

 

(1)

 

-

 

Depreciation of property, plant and equipment

 

318

 

362

 

Depreciation of right-of-use assets

 

113

 

-

 

Amortisation of intangible assets

 

36

 

25

 

Movement in provisions

 

15

 

22

 

Share-based payments charge

 

253

 

274

 

Working capital adjustments:

 

 

 

 

 

Decrease / (increase) in trade and other receivables

 

136

 

(14)

 

Increase in inventories

 

(80)

 

(97)

 

Increase in trade and other payables

 

165

 

381

 

Operating cash flows before interest and tax paid

 

(4,057)

 

(2,629)

 

 

 

 

 

 

 

R&D tax credits received

 

598

 

480

 

Tax paid

 

(13)

 

-

 

Cash used in operations

 

(3,472)

 

(2,149)

 

 

 

 

 

 

 

Net foreign exchange movements

 

71

 

(122)

 

Net cash used in operating activities

 

(3,401)

 

(2,271)

 

Investing activities

 

 

 

 

 

Interest received

 

123

 

165

 

Purchases of property, plant and equipment

 

(107)

 

(400)

 

Purchases of intangible assets

 

(350)

 

(232)

 

Proceeds from disposal of tangible assets

 

1

 

-

 

Investment in associate

 

-

 

(422)

 

Decrease / (increase) in term deposits

 

4,913

 

(10,300)

 

Net cash generated by / (used in) investing activities

 

4,580

 

(11,189)

 

Financing activities

 

 

 

 

 

Lease payments

Issue of equity shares

 

(181)

-

 

-

236

 

Share issue costs

 

-

 

-

 

Net cash (used in) / generated by financing activities

 

(181)

 

236

 

Net increase / (decrease) in cash and cash equivalents

 

998

 

(13,224)

 

Foreign exchange movement on cash and cash equivalents

 

(77)

 

144

 

Cash and cash equivalents at beginning of year

 

5,198

 

18,278

 

Cash and cash equivalents at end of year

 

6,119

 

5,198

 

 

 

 

 

 

 

 

 

NOTES TO THE FINANCIAL INFORMATION

 

1.      Corporate information

Oxford Biodynamics plc is a public limited company incorporated United Kingdom, whose shares were admitted to trading on the AIM market of the London Stock Exchange on 6 December 2016. The Company is domiciled in the United Kingdom and its registered office is Building 7600 C2, The Quorum, Alec Issigonis Way, Oxford Business Park North, Oxford OX4 2JZ. The registered company number is 06227084 (England & Wales).

 

The Group is primarily engaged in biomarker research and development.

 

2.      Basis of the announcement

 

Basis of preparation

The final results for the year ended 30 September 2020 were approved by the Board of Directors on 27 January 2021. The final results do not constitute full accounts within the meaning of section 434 of the Companies Act 2006 but are derived from audited accounts for the year ended 30 September 2020 and the year ended 30 September 2019.

 

This announcement is prepared on the same basis as set out in the audited statutory accounts for the year ended 30 September 2020. The accounts for the years ended 30 September 2020 and 30 September 2019, upon which the auditors issued unqualified opinions, also had no statement under section 498(2) or (3) of the Companies Act 2006.

 

While the financial information included in this results announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards, as adopted by the European Union (EU) (IFRS), this announcement does not in itself contain sufficient information to comply with IFRS.

 

Reporting currency

The consolidated financial information of Oxford Biodynamics plc ("the Group") is presented in pounds Sterling (£), which is also the Company's functional currency.

 

Going concern

In assessing the appropriateness of adopting the going concern assumption, the Group has prepared a detailed financial forecast ("the forecast") for the two-year period ending 30 September 2022. The forecast includes:

·      cautious estimates of likely revenue arising from the Group's proprietary products (based on market research independently commissioned by the Group)

·      costs associated with the expansion of its strategic focus that was announced in December 2020, principally as a result of strengthened US commercial and UK scientific infrastructure

 

The Directors consider that the forecast represents a reasonable best estimate of the performance of the Group over the two years to 30 September 2022. The Group has also modelled a number of potential scenarios, each of which assumes significant reductions, including to zero, in the revenue arising from its first product, the COVID severity test anticipated to launch early in 2021 ("the scenarios"). The forecast and the scenarios show that the Group should be able to continue operating for the foreseeable future without recourse to additional financing. Accordingly, the Directors have concluded that it is reasonable to continue to adopt the going concern assumption in preparing these financial statements.

 

The Group has further modelled a more negative scenario in which none of its planned products generates revenue and revenue from contracts with pharmaceutical and biotech partners is also severely curtailed, but costs associated with the planned expansion of its US and UK infrastructure are still incurred ("the worst case scenario"). Whilst the Directors do not consider the worst case scenario to be likely, it has been considered because:

·      at the time of signing the accounts, none of the Group's planned proprietary products has yet been launched and there are therefore no historical sales data on which to rely when developing estimates

·      with the exception of staff costs, cash outflows associated with expanding the Group's infrastructure are either up-front in nature (for example capital expenditure on laboratory fit-out and equipment) or generate relatively long-term commitments (for example property leases)

·      in the worst case scenario, the Group would need to access additional cash resources in order to continue as a going concern, most likely by the second quarter of 2022

·      at the time of signing the accounts, the Group has no guarantee that it will be able to access additional cash resources

 

The Directors do not believe that any of the factors listed above is unusual or unexpected for the Group at this point in its history, but that shareholders should be aware that, taken together, these conditions present a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business.

 

New accounting standards adopted for the first time in the financial statements for the year ended 30 September 2020

 

The Group applied the following accounting standards and amendments for the first time in these financial statements:

·       IFRS 16 'Leases'

·       IFRIC 23 'Uncertainty over Income Tax Treatments'

·       Amendments to IFRS 9: 'Prepayment Features with Negative Compensation'

·       Amendments to IAS 28 'Investments in Associates and Joint Ventures'

·       Annual Improvements to IFRSs - 2015-2017 Cycle

 

With the exception of IFRS 16 'Leases', none of the standards or amendments had a significant impact on the financial statements. The Group's approach to, and the impact of, applying IFRS 16 is described below.

 

IFRS 16 'Leases'

The Group applied IFRS 16 for the first time with effect from 1 October 2019. IFRS 16 requires operating leases to be recognized on the balance sheet and will have a significant impact in that the assets and liabilities for all operating leases with a term of more than 12 months under which the Group is a lessee (mainly rental properties) will be recognized on the balance sheet.

Transition to IFRS 16

The Group applied IFRS 16 to its leases following the modified retrospective approach, whereby the cumulative effect of initially applying the new standard is recognized at the date of initial application (1 October 2019) in accordance with paragraphs C7-C13 of IFRS 16. The Group applied this election consistently to all of the leases in which it is a lessee.  Comparative information was not restated. Instead, the cumulative effect of initially applying IFRS 16 has been recognized as an adjustment to the opening balance of retained earnings on 1 October 2019.

The Group:

(a)   recognized a lease liability at the date of initial application for leases previously classified as an operating lease applying IAS 17. The lease liability was measured at the present value of the remaining lease payments, discounted using a weighted average incremental borrowing rate of 3%.

(b)   recognized a right-of-use asset at the date of initial application for leases previously classified as an operating lease applying IAS 17. The right-of-use asset was measured at its carrying amount as if IFRS 16 had been applied since the commencement date, discounted using a weighted average incremental borrowing rate of 3%.

On transition, for leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low-value assets, the Group applied the optional exemptions allowing it not to recognize right-of-use assets but to account for the lease expense on a straight line basis over the remaining lease term. 

 

Instead of performing an impairment review on the right-of-use assets at the date of initial application, the Group relied on its historic assessment as to whether leases were onerous immediately before the date of initial application of IFRS 16.

 

Impact on Group statement of financial position and equity (increase / (decrease)) of applying IFRS 16 on 1 October 2019

 

£'000

Assets

 

Property plant and equipment (right-of-use assets)

 

-       cost

734

-       accumulated depreciation

(141)

 

593

Liabilities

 

Lease liabilities

703

Lease liabilities recognized under IAS 17

(168)

Net impact on equity

58

 

Reconciliation of total operating lease commitments at 30 September 2019 to lease liabilities recognized at 1 October 2019

 

 

 

 

£000

Total operating lease commitments disclosed at 30 September 2019

 

 

 

779

Recognition exemptions:

 

 

 

 

-       Low value assets

 

(8)

 

 

-       Leases with a remaining term of 12 months or less

 

(11)

 

 

 

 

 

 

(19)

Operating lease liabilities before discounting

 

 

 

760

Discounted using incremental borrowing rate

 

 

 

(57)

Operating lease liabilities

 

 

 

703

Finance lease obligations as at 30 September 2019

 

 

 

-

Total lease liabilities recognized under IFRS 16 at 1 October 2019

 

 

 

703

Under IFRS 16 it is likely that for a given lease, the Group's operating costs will be lower and its finance expenses higher than was the case under IAS 17. As accounting under IFRS 16 includes the recognition of interest charges on a reducing lease liability, it is expected that future lease costs will be 'front-loaded' to an extent.

More detail on the Group's accounting policies is provided in the audited statutory accounts.

 

Critical judgements in applying the Group's accounting policies

The following are the critical judgements that the Directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements.

Revenue recognition

For revenue arising from the provision of research services, Management is satisfied that revenue has been recognized appropriately for the stage of the contracts at the reporting date based on reliable estimates. This requires management to estimate for each project the stage of completion at the reporting date based on an analysis of information from the laboratory-based team and analysis of progress towards performance obligations specified under the terms of customer contracts.

Valuation of investment in Holos Life Sciences Pte Ltd

During the prior period, the Group exercised its option to acquire a 30% shareholding in Holos Life Sciences (Singapore) Pte Ltd ("Holos"), a Singapore-based company which is not listed on any public exchange, for a nominal amount. The Group subsequently invested $540,000 in that entity as part of an interim fundraising. As at 30 September 2020, the Group owned 28.84% of Holos' issued share capital and the Group is determined to have acquired significant influence over its activities. Accordingly, Holos is accounted for as an associate undertaking, using the equity method (see Note 10).

To the extent that any goodwill is recognized in the carrying value of the investment, the Directors must assess this balance for indicators of impairment on at least an annual basis. The determination of the appropriate carrying value of the Group's holding in Holos requires the Directors to assess the fair value of its investment in Holos' business as at the balance sheet date.

In making their judgement on the appropriate carrying value for the Group's investment in Holos, the Directors consider it likely that Holos will be able both i) to generate future sales revenue and profits through its planned business activity, which includes the commercialization of non-clinical applications of the Group's technology and ii) to raise sufficient funds in the short-to-medium term to continue as a going concern until it becomes self-financing.

This judgement may be subject to change in future in the light of Holos' performance and/or fundraising: if the Directors were to change their judgement, it is possible that the value of the Group's investment in Holos would be reduced, potentially to zero, through the recognition of an impairment charge in the income statement. The Directors will continue regularly to review the Group's investment in Holos for indicators of impairment and will update their judgement as necessary.

 

3.      Revenue

All revenue is derived from the Group's principal activity, biomarker research and development. Analysis of the Group's revenue by geography and pattern of revenue recognition is as follows:

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Continuing operations

 

 

 

 

 

USA

 

378

 

126

 

Rest of World

 

78

 

781

 

Consolidated revenue

 

456

 

907

 

 

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Continuing operations

 

 

 

 

 

Revenue recognized at a point in time

 

14

 

519

 

Revenue recognized over time

 

442

 

388

 

 

 

456

 

907

 

 

4.      Business segments

Products and services from which reportable segments derive their revenues

Information reported to the Group's Chief Executive (who has been determined to be the Group's Chief Operating Decision Maker) for the purposes of resource allocation and assessment of segment performance is focused on the sole service which Oxford BioDynamics sells. The Group's sole reportable segment under IFRS 8 is therefore that of biomarker research and development.

 

The Group's non-current assets, analysed by Geographical location were as follows:

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Non-current assets

 

 

 

 

 

UK

 

1,952

 

1,326

 

Malaysia

 

97

 

120

 

Total non-current assets

 

2,049

 

1,446

 

 

 

 

 

 

 

 

Information about major customers

The Group's revenues for the periods covered by this report are derived from a small number of customers, several of which represent more than 10% of the revenue for the period.  These are summarized below:

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Revenue from individual customers each representing more than 10%

of revenue for the period:

378

 

900

 

 

 

 

 

 

 

5.      Loss for the year

Loss for the year has been arrived at after charging/(crediting):

 

 

2020

 

2019

 

 

 

£000

 

£000

 

 

 

 

 

 

 

Net foreign exchange losses / (gains)

 

61

 

(141)

 

Research and development costs (excluding staff costs)

 

622

 

468

 

Depreciation and impairment of property, plant and equipment

 

318

 

362

 

(Profit) on disposal of property, plant and equipment

 

(1)

 

-

 

Operating lease rental expense

 

38

 

159

 

Staff costs

 

2,747

 

2,117

 

Share based payments charge to profit and loss

 

253

 

274

 

 

 

 

 

 

 

 

6.      Earnings per share

 

From continuing operations

 

The calculation of the basic and diluted earnings per share is based on the following data:

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Earnings for the purposes of basic earnings per share, being net loss attributable to owners of the Company:

(4,313)

 

(2,800)

 

Earnings for the purposes of diluted earnings per share

 

(4,313)

 

(2,800)

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

No

 

No

 

Number of shares

 

 

 

 

 

Weighted average number of ordinary shares for the purposes of

basic and diluted earnings per share*:

92,558,317

 

92,558,317

 

 

 

 

 

 

 

 

 

Pence

 

Pence

 

Earnings per share

 

 

 

 

 

 

Basic and diluted earnings per share

(4.7)

 

(3.0)

 

 

 

 

 

 

 

*Potential ordinary shares are not treated as dilutive as the entity is loss making. 

 

7.      Intangible fixed assets

Group and Company

 

 

Website development costs

Software development costs

Patents

Total   

 

 

 

 

 

 

£000

 

£000

 

£000

 

£000

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

 

 

 

 

62

 

32

 

487

 

581

 

Additions

 

 

 

 

-

 

8

 

342

 

350

 

At 30 September 2020

 

 

 

 

62

 

40

 

829

 

931

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

 

 

 

 

12

 

11

 

3

 

26

 

Charge for the year

 

 

 

 

21

 

12

 

3

 

36

 

At 30 September 2020

 

 

 

 

33

 

23

 

6

 

62

 

Carrying amount

 

 

 

 

 

 

 

 

 

 

 

 

At 30 September 2020

 

 

 

 

29

 

17

 

823

 

869

 

At 30 September 2019

 

 

 

 

50

 

21

 

484

 

555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

Intangible assets not amortized during the period are patents not yet granted. The Group and Company hold no intangible assets that are determined to have indefinite useful life.

 

 

8.      Property, plant and equipment

Group

 

Leasehold

improvements

Office

equipment

Fixtures

and fittings

Laboratory

equipment

Total   

 

 

 

 

£000

 

£000

 

£000

 

£000

 

£000

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

 

 

576

 

77

 

59

 

1,558

 

2,270

 

Additions

 

 

2

 

60

 

4

 

68

 

134

 

Disposals

 

 

-

 

(4)

 

-

 

-

 

(4)

 

Exchange differences

 

 

(2)

 

-

 

(1)

 

(6)

 

(9)

 

At 30 September 2020

 

 

576

 

133

 

62

 

1,620

 

2,391

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

 

 

166

 

48

 

29

 

1,136

 

1,379

 

Charge for the year

 

 

71

 

28

 

8

 

211

 

318

 

Eliminated on disposals

 

 

-

 

(4)

 

-

 

-

 

(4)

 

Exchange differences

 

 

-

 

-

 

-

 

(2)

 

(2)

 

At 30 September 2020

 

 

237

 

72

 

37

 

1,345

 

1,691

 

Carrying amount

 

 

 

 

 

 

 

 

 

 

 

 

At 30 September 2020

 

 

339

 

61

 

25

 

275

 

700

 

At 30 September 2019

 

 

410

 

29

 

30

 

422

 

891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9.      Right-of-use assets

Group and Company

 

 

 

 

Buildings

Total   

 

 

 

 

 

 

 

 

 

 

£000

 

£000

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

 

 

 

 

 

 

 

 

734

 

734

 

Additions

 

 

 

 

 

 

 

 

-

 

-

 

Disposals

 

 

 

 

 

 

 

 

-

 

-

 

At 30 September 2020

 

 

 

 

 

 

 

 

734

 

734

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

 

 

 

At 1 October 2019

 

 

 

 

 

 

 

 

141

 

141

 

Charge for the year

 

 

 

 

 

 

 

 

113

 

113

 

Eliminated on disposals

 

 

 

 

 

 

 

 

-

 

-

 

At 30 September 2020

 

 

 

 

 

 

 

 

254

 

254

 

Carrying amount

 

 

 

 

 

 

 

 

 

 

 

 

At 30 September 2020

 

 

 

 

 

 

 

 

480

 

480

 

At 30 September 2019

 

 

 

 

 

 

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10.   Investment in associate undertaking

The Group has a 28.84% holding in Holos Life Sciences (Singapore) Pte Ltd ("Holos"), a Singapore-based company which is not listed on any public exchange. The Group's interest in Holos is accounted for using the equity method.

 

On 5 October 2018, the Company exercised a pre-existing option to acquire, for a nominal amount, a 30% shareholding in Holos. Subsequently, on 30 November 2018 the Company also participated in an interim fundraising by Holos, investing US$540,000 in that entity. Summarized financial information for Holos and a reconciliation with the carrying amount of the Group's investment are set out below:

 

Summarized statement of financial position of Holos Life Sciences (Singapore) Pte Ltd

 

 

 

30 September

 

30 September

 

 

 

2020

 

2019

 

 

 

£000

 

£000

 

Current assets

 

203

 

260

 

Non-current assets

 

2

 

1

 

Current liabilities

 

(87)

 

(1,025)

 

Non-current liabilities

 

(969)

 

-

 

Equity

 

(851)

 

(764)

 

Group's share in equity - 28.84% (not recognized)

   (30 September 2019: 28.84%, not recognized)

 

 

-

 

-

 

Goodwill

 

422

 

422

 

Carrying amount of the investment

 

422

 

422

 

 

Summarized income statement for Holos Life Sciences (Singapore) Pte Ltd

 

 

 

1 October 2019 to 30 September 2020

 

5 October 2018 to 30 September 2019

 

 

 

£000

 

£000

 

Revenue

 

-

 

-

 

Cost of sales

 

-

 

-

 

R&D expenditure

 

(89)

 

(795)

 

Admin expenses

 

(268)

 

(541)

 

Finance costs

 

(15)

 

(3)

 

Loss before tax

 

(372)

 

(1,339)

 

Tax

 

-

 

-

 

Loss and total comprehensive income for the period

 

(372)

 

(1,339)

 

Group's share of loss for the period - 28.84% (not recognized)
      (30 September 2019: 28.84%, not recognized)

 

(107)

 

(386)

 

 

The Group's share of Holos' net liabilities and loss for the period have not been recognized because the Group is not liable for any of Holos' liabilities.

Goodwill is subject to review for impairment on at least an annual basis, as set out in the accounting policies note in the audited statutory accounts. Further details of the judgement made by the Directors in relation to the carrying value of the Group's investment in Holos are given in Note 2. Holos had no contingent liabilities as at 30 September 2020 (2019: £nil).

 

 

11.   Lease Liabilities

 

 

2020

 

2019

Maturity analysis:

 

£000

 

£000

Year 1

Year 2

Year 3

Year 4

 

145

145

145

145

 

-

-

-

-

 

Less: future interest charges

 

580

(39)

 

-

-

 

 

541

 

-

Analysed as:

 

 

 

 

Current

Non-current

 

130

411

 

-

-

 

 

541

 

                  -

 

 

12.    Share capital

 

2020

 

2020

 

2019

 

2019

 

 

Number

 

£

 

Number

 

£

 

Authorized shares

 

 

 

 

 

 

 

 

Ordinary shares of £0.01 each - allotted and fully paid

92,559,771

 

925,598

 

92,559,771

 

925,598

 

Total

92,559,771

 

925,598

 

92,559,771

 

925,598

 

 

 

 

 

 

 

 

 

 

The Company has one class of ordinary shares which carry no right to fixed income. 

During the year, the Company did not issue any shares on the exercise of options (2019: 53,633 shares).

 

13.    Share-based payments

 

Equity-settled share option scheme

In November 2016, the Company established an Enterprise Management Incentive ("EMI") share option scheme, under which options have been granted to certain employees, and a non-employee option scheme with similar terms, except that options granted under it do not have EMI status. EMI and non-EMI share options were also previously granted under a share option scheme established in October 2008 ("the 2008 Scheme").  The Company does not intend to grant any further options under the 2008 Scheme. All of the schemes are equity-settled share-based payment arrangements, whereby the individuals are granted share options of the Company's equity instruments, namely ordinary shares of 1 pence each.

 

The schemes include non-market-based vesting conditions only, whereby the share options may be exercised from the date of vesting until the 10th anniversary of the date of the grant. In most cases options vest under the following pattern: one-third of options granted vest on the first anniversary of the grant date; one-third on the second anniversary and one-third on the third anniversary. 

 

 

 

2020

 

 

 

2019

 

 

Number of

options

Weighted

average

exercise

price

Number of

Options

Weighted

average

exercise

price

 

 

 

£

 

 

 

£

 

 

 

 

 

 

 

 

 

 

Outstanding at start of period

6,640,921

 

0.66

 

6,840,812

 

0.61

 

Granted during the period

1,275,598

 

1.06

 

320,000

 

1.64

 

Forfeited during the period

(70,000)

 

(1.88)

 

(466,258)

 

(0.56)

 

Exercised during the period

-

 

-

 

(53,633)

 

(0.83)

 

Outstanding at end of period

7,846,519

 

0.72

 

6,640,921

 

0.66

 

Exercisable at end of period

6,224,253

 

0.59

 

6,040,906

 

0.56

 

Weighted average remaining contractual life (in years) of options outstanding at the period end:

 

4.33

 

 

 

4.37

 

 

 

 

 

 

 

 

 

 

The options outstanding as at 30 September 2020 have exercise prices in the range of £0.34 to £2.10.

 

 

Share-based payment expense

 

 

 

 

2020

 

2019

 

 

 

 

 

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

Expense arising from share-based payment transactions

 

 

 

253

 

274

 

 

 

 

 

 

 

 

 

 

  

14.    Post balance sheet events

There were no events after the year-end that require disclosure in these financial statements.

 

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END
 
 
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