03:00 Thu 25 Jun 2020
Angle PLC - Preliminary Results
For Immediate Release | |
("ANGLE" or "the Company")
Preliminary Results for the eight months ended
CONTINUED PROGRESS TOWARDS FDA SUBMISSION
OVARIAN CANCER STUDY IN PROGRESS
Operational Highlights
· Multi-year comprehensive clinical and analytical studies progressed in support of
- positive results from clinical study
- Q-Submission process with FDA completed
- substantial progress with analytical studies
- full De Novo FDA submission in preparation
· Ovarian cancer clinical verification study established with leading US cancer centre
- pre-study phase completed successfully
- HyCEADTM Ziplex® analytical system optimised
- patient enrolment initiated
· Over 20,000 samples processed during the eight month period (year ended
Financial Highlights
· Revenue for the eight month period
· Loss for the eight month period
· Fundraising from institutional investors, including significant new US institutional investors, raising gross proceeds of
· Cash balance at
"Major progress was made during the period with the clinical and analytical studies to support FDA clearance of the Company's Parsortix system in metastatic breast cancer. The full De Novo FDA Submission is in preparation so that this can be rapidly submitted once the remaining analytical samples needed to meet the requirements identified in the
Patient enrolment has also recommenced and ANGLE is again making progress with its ovarian cancer test. It is expected that patient enrolment will complete by the end of CY20, with the aim of supporting the establishment of a laboratory developed test for ovarian cancer in the new year.
During the period, we raised further growth capital, expanding our existing
For further information ANGLE:
| +44 (0) 1483 343434 |
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finnCap Ltd (NOMAD and Joint Broker) Corporate Finance - ECM -
| +44 (0)20 7220 0500 |
| +44 (0) 203 705 9330
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FTI Consulting |
+44 (0) 203 727 1000 +1 212 850 5624 |
For Frequently Used Terms, please see the Company's website on https://angleplc.com/investor-relations/glossary/
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the EU Market Abuse Regulation (596/2014). Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.
These Preliminary Results may contain forward-looking statements. These statements reflect the Board's current view, are subject to a number of material risks and uncertainties and could change in the future. Factors that could cause or contribute to such changes include, but are not limited to, the impact of the COVID-19 pandemic, the general economic climate and market conditions, as well as specific factors including the success of the Group's research and development and commercialisation strategies, the uncertainties related to regulatory clearance and the acceptance of the Group's products by customers.
CHAIRMAN'S STATEMENT
During the period ANGLE progressed clinical and analytical studies to support a De Novo FDA submission for its Parsortix® system for capturing and harvesting circulating tumour cells from metastatic breast cancer patients.
Strong progress was also made with the Company's ovarian cancer assay and a clinical verification study initiated patient enrolment during the period.
Meanwhile ANGLE's collaborators and customers continued to demonstrate Parsortix's versatility in cancer translational research developing important new applications. This work generated six new publications during the period increasing the body of peer-reviewed evidence supporting the platform.
Overview of Financial Results
Revenue of
The cash balance was
Strategy
ANGLE has continued with its sustained focus on its four-pronged strategy for achieving widespread adoption of its Parsortix system in the emerging multi-billion dollar liquid biopsy market:
1) Completion of rigorous large-scale clinical studies run by leading cancer centres, demonstrating the effectiveness of different applications of the system in cancer patient care
2) Securing regulatory approval of the system with the emphasis on FDA clearance as the de facto global gold standard. ANGLE is seeking to be the first company ever to gain FDA clearance for a system which harvests circulating tumour cells (CTCs) from the blood of patients (initially metastatic breast cancer patients) for subsequent analysis
3) Establishing a body of published evidence from leading cancer centres showing the utility of the system through peer-reviewed publications, scientific data and clinical research evidence, highlighting a wide range of potential applications
4) Establishing partnerships with large healthcare companies for market deployment and development of multiple other clinical applications incorporating the Parsortix system.
ANGLE is in the process of establishing an independent accredited clinical laboratory that will have the capability of offering validated clinical tests. This clinical laboratory will be used as an accelerator and demonstrator in support of the Company's established plan for product sales of Parsortix instruments and cassettes.
Progress towards FDA clearance
ANGLE is seeking to become the first ever company to receive FDA clearance for a medical device that harvests intact circulating tumour cells from the blood of metastatic breast cancer patients for subsequent analysis. US regulatory clearance by FDA is considered the global standard for approval of medical devices and diagnostics.
During the period, the FDA clinical studies and a substantial number of the FDA analytical studies demonstrating the performance of the Parsortix system for the capture and harvesting of circulating tumour cells in metastatic breast cancer were completed. These studies have been technically and logistically extremely challenging, requiring a total of over 10,000 samples to be processed with Parsortix.
The FDA clinical studies were undertaken by four of the leading US cancer centres (
The analytical studies demonstrated the performance of the Parsortix system in key aspects including precision and reproducibility, limits of quantification and detection, accuracy and linearity, and interferents and carryover. These studies have required resolution of numerous technical challenges to meet FDA requirements, giving ANGLE a thoroughly characterised platform and consequent competitive advantage.
On
FDA provided a written response to the Q-Submission and held a formal face-to-face meeting with ANGLE in January to discuss their response, which identified some additional analytical study work requested by FDA, as announced on
Subsequent to the period end, the COVID-19 lock down in the
The outcome and timing of the FDA regulatory decision is entirely dependent on
Large scale clinical studies
Ovarian cancer clinical application: triaging abnormal pelvic mass
During the period, following further successful optimisation of the combination of ANGLE's Parsortix CTC system with its proprietary HyCEAD Ziplex downstream molecular analysis process, an ovarian cancer clinical verification study was established with
The study has been designed to evaluate the performance of ANGLE's predictive ovarian cancer detection assay developed using the results from the previous 200 subject study, which achieved best in class results AUC>95% accuracy, in a new patient cohort.
Subsequent to the period end, the COVID-19 lock down in the US beginning in
Once the new performance data is available and, assuming comparable results to the previous study, ANGLE intends to establish this test as a laboratory developed test (LDT) in an accredited clinical laboratory setting. The test has the potential to significantly improve patient outcomes whilst at the same time reducing overall healthcare costs.
Establishing a body of published evidence
The Company's strategy to secure research use adoption of the Parsortix system by leading cancer research centres, in order to get independent third parties driving development of new clinical applications, is working very well.
Over 93,000 samples have been processed using the Parsortix system as at
· the
· the Disseminated Cancer Cell Network (DCCNet),
· the
·
· the
· the
To date, 23 separate cancer centres from around the world have published uniformly positive reports on their use of the Parsortix system. Leading independent cancer centres throughout
Progressing partnerships with large healthcare companies
Large scale deployment of the Parsortix system across numerous cancer types and application areas requires ANGLE to partner with large, global healthcare companies to take advantage of their distribution and sales channels and economic resources. Discussions are ongoing with companies in relevant fields: medtech companies, pharma companies, contract research organisations and reference laboratories (laboratories offering clinical tests). We expect to see our partnership programme accelerate once FDA clearance for the system has been achieved.
During the period, ANGLE has progressed its three key partnerships with the large healthcare companies Abbott, QIAGEN and Philips, and is continuing to seek a corporate partner to progress the use of Parsortix in non-invasive prenatal testing (NIPT).
COVID-19
The Company has had some short-term negative impacts from government lock downs associated with COVID-19. Although this has created some uncertainty and a need to adapt the operating model it is not expected to have any significant long-term impact on the Company. As a mitigating step, the decision was made not to pay executive or staff bonuses for the eight month period to
While the COVID-19 lock down caused some unanticipated disruption and delays outside of the Company's control, the Company adopted a proactive approach to the lock down advancing on multiple fronts and developing some new initiatives. The business continuity plan was enacted, disruption was minimised and employees, suppliers and customers were flexible and proactive in dealing with the situation. Those employees that can work from home have done so, whereas laboratory staff have moved to double shift patterns with enhanced hygiene and operating procedures in order to provide a safe working environment and meet government laws and guidelines. Research use revenues have been disrupted, as the cancer centres we sell to are mainly within hospital facilities that have been closed except for COVID-19 related activities, but we have taken the opportunity to work on remote customer support measures and proactive business development programmes.
Cancer is the second leading cause of death globally and is responsible for an estimated 9.6 million deaths in 2018 with an estimated 18.1 million new cases every year and some 43.8 million living with and after cancer. The need for a simple blood test alternative to tissue biopsies is being even further demonstrated in the current COVID-19 situation as cancer diagnosis and treatment for critically important metastatic tissue biopsies are being postponed or cancelled.
Outlook
Major progress was made during the period with the clinical and analytical studies to support FDA clearance of the Company's Parsortix system in metastatic breast cancer. The full De Novo FDA Submission is in preparation so that this can be rapidly submitted once the remaining analytical samples needed to meet the requirements identified in the
Patient enrolment has also recommenced and ANGLE is again making progress with its ovarian cancer test. It is expected that patient enrolment will complete by the end of CY20, with the aim of supporting the establishment of a laboratory developed test for ovarian cancer in the new year.
During the period, we raised further growth capital, expanding our existing
Garth Selvey
Chairman
24 June 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED
| | 8 months ended | | Year ended | |
| | | | ||
| Note | £'000 | | £'000 | |
Revenue | | 581 | | 678 | |
Cost of sales | | (142) | | (155) | |
Gross profit | | 439 | | 523 | |
Other operating income | | 61 | | 175 | |
Operating costs | | (8,204) | | (11,597) | |
Operating profit/(loss) | | (7,704) | | (10,899) | |
Net finance income/(costs) | | (26) | | 28 | |
Profit/(loss) before tax | | (7,730) | | (10,871) | |
Tax (charge)/credit | 5 | 1,482 | | 1,939 | |
Profit/(loss) for the period | | (6,248) | | (8,932) | |
Other comprehensive income/(loss) | | | | | |
Items that may be subsequently reclassified to profit or loss: | | ||||
Exchange differences on translating foreign operations | | (24) | | 72 | |
Other comprehensive income/(loss) | | (24) | | 72 | |
Total comprehensive income/(loss) for the period | | (6,272) | | (8,860) | |
| | | | | |
Profit/(loss) for the period attributable to: | | | | | |
Owners of the parent | | (6,248) | | (8,942) | |
Non-controlling interests | | - | | 10 | |
| | | | | |
Profit/(loss) for the period | | (6,248) | | (8,932) | |
| | | | | |
Total comprehensive income/(loss) for the period attributable to: | | | | | |
Owners of the parent | | (6,272) | | (8,822) | |
Non-controlling interests | | - | | (38) | |
| | | | | |
Total comprehensive income/(loss) for the period | | (6,272) | | (8,860) | |
| | | | | |
Earnings/(loss) per share attributable to owners of the parent Basic and Diluted (pence per share) | 6 | (3.82) | | (6.56) | |
All activity arose from continuing operations. | | | | | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
| | | | |
| Note | £'000 | | £'000 |
Assets | | | | |
Intangible assets | 7 | 7,701 | | 6,833 |
Property, plant and equipment | | 1,508 | | 1,347 |
Right-of-use assets | | 1,514 | | - |
Inventories | | 788 | | 988 |
Trade and other receivables | | 627 | | 942 |
Taxation | | 3,398 | | 1,900 |
Cash and cash equivalents | | 18,766 | | 11,010 |
Total assets | | 34,302 | | 23,020 |
Liabilities | | | | |
Lease liabilities | | (1,553) | | - |
Trade and other payables | | (2,425) | | (3,684) |
Total liabilities | | (3,978) | | (3,684) |
Net assets | | 30,324 | | 19,336 |
Equity | | | | |
Share capital | 8 | 17,277 | | 14,349 |
Share premium | | 67,272 | | 53,273 |
Share-based payments reserve | | 1,518 | | 1,266 |
Other reserve | | 2,553 | | 2,553 |
Translation reserve | | 82 | | 106 |
Retained earnings | | (58,276) | | (52,109) |
ESOT shares | | (102) | | (102) |
Total equity | | 30,324 | | 19,336 |
| | | | |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED
| 8 months ended | | Year ended |
| | | |
| £'000 | | £'000 |
Operating activities | | | |
Profit/(loss) before tax from continuing operations | (7,730) | | (10,871) |
Adjustments for: | | | |
Depreciation of property, plant and equipment | 432 | | 622 |
Depreciation of right-of-use assets | 219 | | - |
(Profit)/loss on disposal of property, plant and equipment | 13 | | 8 |
Amortisation and impairment of intangible assets | 240 | | 452 |
Share-based payments | 333 | | 332 |
Exchange differences | (27) | | (14) |
Net finance (income)/costs | 26 | | (28) |
Operating cash flows before movements in working capital | (6,494) | | (9,499) |
(Increase)/decrease in inventories | 90 | | (583) |
(Increase)/decrease in trade and other receivables | 303 | | (91) |
Increase/(decrease) in trade and other payables | (841) | | 608 |
Operating cash flows | (6,942) | | (9,565) |
Research and development tax credits received | - | | 2,251 |
Overseas tax payments | (59) | | - |
Net cash from/(used in) operating activities | (7,001) | | (7,314) |
Investing activities | | | |
Purchase of property, plant and equipment | (529) | | (219) |
Purchase of intangible assets | (1,431) | | (1,133) |
Interest received | 40 | | 28 |
Net cash from/(used in) investing activities | (1,920) | | (1,324) |
Financing activities | | | |
Net proceeds from issue of share capital | 16,921 | | 11,996 |
Interest paid | (2) | | - |
Principal elements of lease payments | (231) | | - |
Interest elements of lease payments | (13) | | - |
Net cash from/(used in) financing activities | 16,675 | | 11,996 |
Net increase/(decrease) in cash and cash equivalents | 7,754 | | 3,358 |
Cash and cash equivalents at start of period | 11,010 | | 7,645 |
Effect of exchange rate fluctuations | 2 | | 7 |
Cash and cash equivalents at end of period | 18,766 | | 11,010 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
| -------------------------------------------------- Equity attributable to owners of the parent --------------------------------------- | | | |||||||
| | | Share-based | | | | | Total | Non- | |
| Share | Share | payments | Other | Translation | Retained | ESOT | Shareholders' | controlling | Total |
| capital | premium | reserve | reserve | reserve | earnings | shares | equity | interests | equity |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| | | | | | | | | | |
At | 11,709 | 43,449 | 1,072 | 2,553 | (14) | (42,129) | (102) | 16,538 | (654) | 15,884 |
For the year to | | | | | | | | | | |
Consolidated profit/(loss) | | | | | | (8,942) | | (8,942) | 10 | (8,932) |
Other comprehensive income/(loss): | | | | | | | | | | |
Exchange differences on translating foreign operations | | | | | 120 | | | 120 | (48) | 72 |
Total comprehensive income/(loss) | | | | | 120 | (8,942) | | (8,822) | (38) | (8,860) |
Issue of shares (net of costs) | 2,540 | 9,456 | | | | | | 11,996 | | 11,996 |
Share-based payments | | | 332 | | | | | 332 | | 332 |
Released on forfeiture | | | (138) | | | 138 | | - | | - |
Acquisition of non-controlling interest | 100 | 368 | | | | (1,176) | | (708) | 692 | (16) |
| ___ ______ | ___ _______ | ___ ______ | ___ ______ | ___ ______ | ___ ________ | ___ ______ | ___ _______ | __ _______ | ___ _______ |
At | 14,349 | 53,273 | 1,266 | 2,553 | 106 | (52,109) | (102) | 19,336 | - | 19,336 |
For the period to | | | | | | | | | | |
Consolidated profit/(loss) | | | | | | (6,248) | | (6,248) | - | (6,248) |
Other comprehensive income/(loss): | | | | | | | | | | |
Exchange differences on translating foreign operations | | | | | (24) | | | (24) | - | (24) |
Total comprehensive income/(loss) | | | | | (24) | (6,248) | | (6,272) | - | (6,272) |
Issue of shares (net of costs) | 2,928 | 13,999 | | | | | | 16,927 | | 16,927 |
Share-based payments | | | 333 | | | | | 333 | | 333 |
Released on forfeiture | | | (78) | | | 78 | | - | | - |
Released on exercise | | | (3) | | | 3 | | - | | - |
| ___ ______ | ___ _______ | ___ ______ | ___ ______ | ___ ______ | ___ ________ | ___ ______ | ___ _______ | ___ ______ | ___ _______ |
At | 17,277 | 67,272 | 1,518 | 2,553 | 82 | (58,276) | (102) | 30,324 | - | 30,324 |
| ========== | ========== | ========== | ========== | ========= | =========== | ========== | ========== | ========== | ========== |
NOTES TO THE PRELIMINARY ANNOUNCEMENT
FOR THE PERIOD ENDED
1 Preliminary announcement
The preliminary results for the eight months ended
The preliminary announcement set out above does not constitute
The auditor's report on the Consolidated Financial Statements for the periods ended
The accounting policies used for the period ended
2 Compliance with accounting standards
While the financial information included in this preliminary announcement has been computed in accordance with the measurement principles of IFRS, this announcement does not itself contain sufficient information to comply with IFRS.
Accounting standards adopted in the period
IFRS 16 Leases, which has been issued by the IASB to replace IAS 17 "Leases", came into effect for accounting periods commencing on or after
The Group has recognised right-of-use assets representing its leased property rights, and the corresponding lease liabilities representing its obligations to make lease payments over the remaining lease terms in connection with all former operating leases except for those identified as low-value or having a remaining lease term of 12 months or less from the date of initial application. Previously under IAS 17, a liability was not recorded for future operating lease payments, but was disclosed as commitments.
The effect of IFRS 16 was to recognise right-of-use assets and corresponding lease liabilities of
Lease costs are recognised in the form of depreciation of the right-of-use assets and interest on the lease liability which will be discounted at either the interest rate implicit in the lease or, when this is not determinable, the expected incremental borrowing rate for the Group for the item under lease. Under IAS 17, operating lease rentals were expensed on a straight-line basis over the lease term within operating expenses. The Group's incremental borrowing rate was estimated at 5.75% at the date of adoption of IFRS 16.
The impact on the Consolidated Statement of Comprehensive Income in the reporting period has been to increase the depreciation charge and reduce the leasing cost by
No other new accounting standards that have become effective and adopted in the period have had a significant effect on the Group's Financial Statements.
Accounting standards issued but not yet effective
At the date of authorisation of the Financial Statements, there were a number of other Standards and Interpretations (International Financial Reporting Interpretation Committee - IFRIC) which were in issue but not yet effective, and therefore have not been applied in these Financial Statements. The Directors have not yet assessed the impact of the adoption of these standards and interpretations for future periods.
3 Going concern
The Group's business activities, together with the factors likely to affect its future development, performance and financial position are set out in the Chairman's Statement.
ANGLE's operations in the
The current COVID-19 circumstances and the extent of any further disruption to the business arising from further Government directives is uncertain and outside of the Company's control. The Directors cannot be certain of the likely timing for completing the FDA study, completing the ovarian cancer study and for research use sales to rebuild until Government restrictions are lifted.
The Directors have considered the uncertainties and risks set out above and are carefully managing the discretionary expenditure in line with available cash resources.
The Directors have prepared and reviewed the financial projections for the 12 month period from the date of signing of these Financial Statements with discretionary expenditure carefully controlled. Based on the level of existing cash and expected R&D tax credits, the projected income and expenditure (the timing of some of which is at the Group's discretion) and other potential sources of funding, the Directors have a reasonable expectation that the Company and Group have adequate resources to continue in business for the foreseeable future. Accordingly, the going concern basis has been used in preparing the Financial Statements.
4 Critical accounting estimates and judgements
The preparation of the Financial Statements requires the use of estimates, assumptions and judgements that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates, assumptions and judgements are based on the Directors' best knowledge of the amounts, events or actions, and are believed to be reasonable, actual results ultimately may differ from those estimates.
The estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are described below.
Valuation and amortisation of internally-generated intangible assets (Note 7)
IAS 38 Intangible Assets contains specific criteria that if met mean development expenditure must be capitalised as an internally generated intangible asset. The carrying value of the capitalised product development at the reporting date is
Impairment of intangible assets (Note 7)
The Group is required to review, at least annually, whether goodwill has suffered any impairment and whether the carrying amount may exceed the recoverable amount.
The Group is required to review, at least annually, whether there are indications (events or changes in circumstances) that intangible assets excluding goodwill have suffered impairment and that the carrying amount may exceed the recoverable amount. If there are indications of impairment then an impairment review is undertaken.
The recoverable amount is the higher of the asset's fair value less costs to sell and its value-in-use for the cash-generating unit giving rise to the intangible assets. The value-in-use method requires the estimation of future cash flows and the selection of a suitable discount rate in order to calculate the present value of these cash flows. When reviewing intangible assets for impairment the Group has had to make various assumptions and estimates of individual components and their potential value and potential impairment impact. The Group considers that for each of these variables there is a range of reasonably possible alternative values, which results in a range of fair value estimates. None of these estimates of fair value is considered more appropriate or relevant than any other and therefore determining a fair value requires considerable judgement.
Share-based payments
In calculating the fair value of equity-settled share-based payments the Group uses an options pricing model. The Directors are required to exercise their judgement in choosing an appropriate options pricing model and determining input parameters that may have a material effect on the fair value calculated. These input parameters include, among others, expected volatility, expected life of the options taking into account exercise restrictions and behavioural considerations of employees, market related performance conditions, the number of options expected to vest and liquidity discounts.
Research and development tax credit (Note 5)
The Directors make their best estimate of qualifying R&D expenditure to calculate the R&D tax credit. The interpretation of qualifying expenditure requires judgement.
Leases - Calculating the incremental borrowing rate
As the Group cannot readily determine the interest rate implicit in the lease, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The rate was determined following discussions with our main commercial bank with regard to our particular circumstances. The rate therefore reflects what the Group 'would have to pay', which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary's functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary's stand-alone credit rating).
Leases - extension and/or termination options
The Group has two lease contracts that include extension and/or termination options. The Directors exercise significant judgement in determining whether these extension and/or termination options are reasonably certain to be exercised, and agreed that it was reasonable to assume that both of these lease contracts would be extended beyond the termination option/notice period due to significant fit-out and renovations to create specialist laboratories and the prohibitive cost of finding equivalent alternative accommodation. The impact of including the extension and/or termination options is to increase both the carrying value of the right-of-use assets and the non-current lease liability at the reporting date by
5 Tax
The Group undertakes research and development activities. In the
6 Earnings/(loss) per share
The basic and diluted earnings/(loss) per share is calculated by dividing the after tax loss for the eight month period attributable to the owners of the parent of
In accordance with IAS 33 Earnings per share 1) the "basic" weighted average number of ordinary shares calculation excludes shares held by the
The basic and diluted earnings/(loss) per share are based on 163,682,011 weighted average ordinary
7 Intangible assets
| | | | | | Total |
| | | | | | £'000 |
Cost | | | | | | |
At 1 May 2018 | | | | | | 6,614 |
Additions | | | | | | 1,653 |
Disposals | | | | | | (3) |
Exchange movements | | | | | | 92 |
| | | | | | |
At 30 April 2019 | | | | | | 8,356 |
Additions | | | | | | 1,110 |
Exchange movements | | | | | | (24) |
| | | | | | |
At 31 December 2019 | | | | | | 9,442 |
| | | | | | |
Amortisation and impairment | | | | | | |
At 1 May 2018 | | | | | | 1,026 |
Charge for the year | | | | | | 405 |
Disposals | | | | | | (3) |
Impairment | | | | | | 47 |
Exchange movements | | | | | | 48 |
| | | | | | |
At 30 April 2019 | | | | | | 1,523 |
Charge for the period | | | | | | 240 |
Exchange movements | | | | | | (22) |
| | | | | | |
At 31 December 2019 | | | | | | 1,741 |
| | | | | | |
Net book value | | | | | | |
At 31 December 2019 | | | | | | 7,701 |
| | | | | | |
At 30 April 2019 | | | | | | 6,833 |
| | | | | | |
Intangible assets arising as a result of the business combination in a prior year comprise the fair value of the identifiable intangible assets and the goodwill arising at the date of acquisition. Identifiable intangible assets excluding goodwill are amortised over their estimated useful economic life.
Internally-generated intangible assets comprises intellectual property (patents) and product development costs capitalised in accordance with IAS 38 Intangible Assets. Capitalised product development costs are directly attributable costs comprising cost of materials, specialist contractor costs, labour and overheads. Product development costs are amortised over their estimated useful lives commencing when the related new product is in commercial production. Development costs not meeting the IAS 38 criteria for capitalisation continue to be expensed through the Statement of Comprehensive Income as incurred.
The carrying value of intangible assets excluding goodwill is reviewed for indications of impairment whenever events or changes in circumstances indicate that the carrying value may exceed the recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and its "value-in-use". The key assumptions to assess value-in-use are the estimated useful economic life, future revenues, cash flows and the discount rate to determine the net present value of these cash flows. Where value-in-use exceeds the carrying value then no impairment is made. Where value-in-use is less than the carrying value then an impairment charge is made.
Amortisation and impairment charges are charged to operating costs in the Consolidated Statement of Comprehensive Income.
8 Share capital
The Company has one class of ordinary shares which carry no right to fixed income and at 31 December 2019 had 172,771,483 ordinary shares of £0.10 each allotted, called up and fully paid (30 April 2019: 143,486,522).
The Company issued 29,268,294 new Ordinary shares with a nominal value of £0.10 at an issue price of £0.615 per share in a subscription of shares realising gross proceeds of £18.0 million. Shares were admitted to trading on AIM in July 2019.
The Company issued 16,667 new Ordinary shares with a nominal value of £0.10 at an exercise price of £0.385 per share as a result of the exercise of share options by an employee. Shares were admitted to trading on AIM in December 2019.
9 Shareholder communications
Copies of this announcement are posted on the Company's website www.ANGLEplc.com.
Due to the unprecedented situation with COVID-19 and in line with the
Notice of the meeting will be enclosed with the audited Statutory Financial Statements.
The audited Statutory Financial Statements for the eight month period ended 31 December 2019 are expected to be distributed to shareholders by 4 August 2020 and will subsequently be available on the Company's website or from the registered office, 10 Nugent Road, Surrey Research Park,
This preliminary announcement was approved by the Board on 24 June 2020.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the
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