Final Results

RNS Number : 8326T

Angle PLC

23 July 2015

 



23 July 2015

ANGLE plc

("ANGLE" or "the Company")

Preliminary Results for the year ended 30 April 2015

HIGHLY ENCOURAGING PATIENT RESULTS IN OVARIAN CANCER

ANGLE plc (AIM: AGL OTCQX: ANPCY), the specialist medtech company with pioneering products for cancer diagnostics, today announces audited preliminary results for the year ended 30 April 2015.

Highlights

 

·     First clinical application for Parsortix cell separation system determined in ovarian cancer following compelling 65-patient study published by the Medical University of Vienna demonstrating high sensitivity and specificity in detecting ovarian cancer and certain other women's cancers

·     Key Opinion Leader platform strengthened with the addition of six further world-class cancer centres making a total of nine Key Opinion Leaders

·     Uniformly positive results published by five Key Opinion Leaders of performance of Parsortix system

·     Initiation of first two corporate collaborations

·     Commercial strategy on track with first sales for research use to commence in the current financial year  

·     Intellectual property further enhanced; second US patent granted and patents granted in China and Australia

·     Continuing investment to advance and drive adoption of Parsortix

−    Financial position strengthened following successful fundraising of £8.2 million net of expenses

−    Loss from continuing operations of £3.9 million (2014: £2.2 million) reflecting planned investment

−    Cash balance at 30 April 2015 of £8.4 million (30 April 2014: £3.9 million)

Post year end highlights

·     Prostate cancer 52-patient study published by Barts Cancer Institute indicating capture of cancer cells from Parsortix liquid biopsy in 100% of patients

·     Eminent scientific advisors, Jim Reuben from MD Anderson Cancer Center and Daniel Danila from Memorial Sloan Kettering Cancer Center join Scientific Advisory Board

 

Garth Selvey, Chairman, commented:

"We have made strong progress advancing our strategy this year through the validation of the Parsortix cell separation system by world class cancer centres. We have identified ovarian cancer for the first clinical application for the Parsortix system following a successful patient study with the Medical University of Vienna which demonstrated Parsortix's potential to identify ovarian cancer with high sensitivity and specificity where traditional techniques fail.  In the coming year, we are well funded to focus on the development of research use sales, and advance a large scale study in ovarian cancer to establish Parsortix as a diagnostic tool to enable clinicians to choose the most appropriate treatment thereby improving patient outcomes."

Details of webcast

Please see http://www.angleplc.com/investor-information/investor-centre/ for details.

For further information:

ANGLE plc	01483 685830
Andrew Newland, Chief Executive Ian Griffiths, Finance Director
Cenkos Securities Stephen Keys, Dr Christopher Golden (Nominated adviser) Russell Kerr, Olly Baxendale (Sales)	020 7397 8900
FTI Consulting Simon Conway, Mo Noonan Kimberly Ha (US)	020 3727 1000 001 212 850 5612

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 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

Introduction

ANGLE made solid progress during the year, laying the foundations to support the future growth of the Company.  It secured positive evaluations from its growing network of Key Opinion Leaders from world-class cancer centres, providing further evidence to support the use of the technology in cancer diagnosis and, following a successful patient study, determined the first clinical application for its Parsortix system in ovarian cancer.  The Company has also attracted additional scientific advisors for its Scientific Advisory Board, established corporate collaborations and is set to secure first sales in the research market for Parsortix.

Results

ANGLE has completed its transformation to a specialist medtech company focused exclusively on its innovative Parsortix system providing cells for precision medicine from a simple blood test - a repeatable, non-invasive liquid biopsy.  Previous activities in relation to Management services, Geomerics and, subsequent to the year end, Novocellus have been discontinued. 

As planned, investment in additional studies to validate the clinical application and commercial use of Parsortix was increased, resulting in operating costs of £3.9 million (2014: £2.2 million).

The loss for the year from continuing operations correspondingly increased to £3.9 million (2014: £2.2 million).

Following a successful fundraising during the year raising £8.2 million net of costs, the cash balance was £8.4 million at 30 April 2015 (30 April 2014: £3.9 million). 

Expansion of Key Opinion Leader platform

The Parsortix cell separation system is a platform technology that can be applied across multiple cancer indications.  The system captures and harvests very rare, clinically relevant circulating tumour cells (CTCs) from patients' blood, enabling accurate diagnosis and the potential for use in precision medicine.

Endorsement of the Parsortix system by Key Opinion Leaders from world leading cancer research centres is crucial in identifying and proving clinical applications, and providing validation and credentials for potential customers.

To ensure that we garner this important endorsement across key territories and disease indications, we have established a robust core platform of Key Opinion Leaders to support the adoption of Parsortix.  During the year we added six world class cancer centres to the platform in the UK, Europe and the United States making a total of nine Key Opinion Leaders working with the Parsortix system.  The new Key Opinion Leaders are:

·     Barts Cancer Institute, Queen Mary University of London (BCI)

·     University Medical Center Hamburg-Eppendorf (Hamburg)

·     University of Texas MD Anderson Cancer Center (MD Anderson)

·     Medical University of Vienna (Vienna)

·     University of Southern California Norris Comprehensive Cancer Center (USC)

·     Sidney Kimmel Cancer Center at Thomas Jefferson University (TJU)

Our Key Opinion Leader platform is evaluating the adoption of the Parsortix system in multiple different cancer types including ovarian, prostate, breast, lung, colorectal and pancreatic cancers and is providing evidence to support the further development of the technology into new indications.

Five Key Opinion Leaders reported uniformly positive results from their evaluation of the Parsortix system capability to harvest cancer cells from patient blood as a liquid biopsy.  Key differentiating benefits of the Parsortix system were identified, including:

·     Ease of use

·     Epitope independence i.e. does not use antibodies and harvests all types of cancer cells

·     Easy harvest of viable cells allowing a wide range of molecular analysis

·     High purity of harvested cells i.e. low residual white blood cell contamination

·     High sensitivity and specificity

·     Cost efficiency

In line with our strategy, the third party evaluation phase is now complete and the focus of our work with Key Opinion Leaders has moved to "translational research" that identifies potential indications where the system can be used to benefit patients.

Ovarian cancer determined as first clinical application

Major progress was achieved during the year as the Medical University of Vienna published patient study results demonstrating high sensitivity and specificity of the Parsortix system in detecting ovarian cancer and certain other women's cancers.

The study evaluated a total of 65 patients, comprising 42 cancer patients and 23 healthy normal volunteers. The cancer patients consisted of 24 ovarian cancer, 6 cervical cancer, 5 endometrial cancer and 7 breast cancer cases.

Currently the only way to diagnose ovarian cancer definitively is invasively through surgical investigation by means of a biopsy.  Consequently there is no way to know in advance of surgery whether an abnormal pelvic mass identified by ultrasound or CT-scan is likely to be benign or malignant and thus determine the appropriate course of action.  If the mass is found to be malignant, a specialist oncological surgeon is required for an operation frequently lasting more than five hours and the patient will subsequently need intensive care.  However, if the mass is benign, the surgery is relatively straight forward and can be handled by a general surgeon.

In the United States alone, an estimated 200,000 women have operations to remove abnormal pelvic masses each year and of these an estimated 21,000 have ovarian cancer. 

The clinical application of Parsortix would be a simple blood test prior to surgery to triage the patients between high and low risk of ovarian cancer so that they can receive appropriate treatment.  Such a blood test would not only improve patient care but would also reduce healthcare costs by targeting necessary resources to those patients at high risk.

ANGLE is now working to establish and complete a large scale patient study to prove the efficacy of the Parsortix system for this application.  The patient study will be carefully controlled and undertaken both in Europe and the United States.  Timescales are not yet fully determined but the aim is to complete the study in Europe by the end of calendar 2016.  This study has the potential to unlock an ovarian cancer market estimated to be worth £300 million per annum.

Establishment of corporate collaborations to drive adoption of Parsortix

ANGLE's strategy to drive market adoption is to leverage the sales and marketing resource of existing downstream molecular analysis companies through corporate collaborations.

The cancer cells obtained from patient blood using the Parsortix system can be analysed using existing molecular analysis platforms already installed worldwide in hospital pathology laboratories for analysis of solid biopsy material.  It is therefore in the interests of the companies that own these systems to promote the use of the Parsortix system as a front end for their own platforms as this will generate additional sales for them from their existing installed platform.

This process is underway with the first two corporate collaborations initiated during the year.

Commercial strategy on track with research use sales commencing this financial year 

Our strategy to commercialise Parsortix falls into two phases.  Now that strong third party evaluations have been received for the system and its operation robustly investigated internally, we will initially target first sales for research use purposes.

Our main approach to achieving this is to:

·     Leverage Key Opinion Leaders to participate in cancer drug trials in which they are involved

·     Migrate existing Key Opinion Leaders to paying customers

We estimate that the research use sales market is worth approximately £250 million per annum and aim to commence sales into this market in the current financial year.

For the second phase, access to the clinical sales market (treating patients) is dependent on successful patient studies and regulatory authorisation.  The first clinical application is targeted to be the ovarian cancer triaging application described above.  Our aim is that the patient study to support sales in this market will be completed in Europe by the end of calendar year 2016.

We estimate that the overall market size for clinical applications of the Parsortix system across all cancer types is in excess of £8 billion per annum.

Intellectual property further strengthened

Protecting the Company's intellectual property is crucial to ensure a dominant position in using our Parsortix system is established and maintained for as long as possible.

Strong progress was made with this during the year and a second US patent and patents in China and Australia have been granted. Progress is being made with multiple other patents worldwide and we hope to have a granted European patent later this financial year.

Continued momentum post year end

Prostate cancer 52-patient study published by Barts Cancer Institute indicating capture of cancer cells from Parsortix liquid biopsy in 100% of patients

Post the year-end, very positive results for the Parsortix system were published by Barts Cancer Institute (BCI) in relation to prostate cancer.  These showed the capture of cancer cells from the Parsortix liquid biopsy in 100% of patients, both those with metastatic cancer and early stage cancer.

BCI demonstrated the ability of the Parsortix system to harvest mesenchymal cells involved in cancer metastasis and then showed a direct correlation between the number of these cells and the stage of development of the patient's cancer.  This was important because traditional antibody-based systems fail to capture these cells and the BCI study suggests that these cells may be crucially important in the process of metastasis.

The results of this study are very encouraging and further validate our belief that the Parsortix technology significantly advances the field of liquid biopsy.  BCI are now working towards the development of a clinical application for a second indication for the Parsortix platform in prostate cancer.

Scientific Advisory Board further strengthened in the United States

The Company has established a Scientific Advisory Board of leading researchers and oncologists to help direct the Company's efforts towards clinical adoption of the Parsortix system.

The Scientific Advisory Board was strengthened with the appointment of two prominent specialists from top cancer centres in the United States; leading translational researcher Jim Reuben from MD Anderson and leading medical oncologist Daniel Danila from Memorial Sloan Kettering.

Regulatory authorisation

 

ANGLE is committed to driving acceptance and approval of its technology worldwide.

 

Regulatory authorisation is a requirement before the Parsortix system can be sold for use in the clinical market (treatment of patients), although as discussed above, earlier sales will be made into the research market.

 

ANGLE already has a CE Mark for clinical use of the Parsortix system in the European Union. Dialogue has been in progress with the FDA for over a year to obtain similar approval in the United States.

ANGLE is seeking to become the first company authorised in the United States to harvest cancer cells from patient blood.  Securing FDA approval requires extensive, detailed work to meet the requirements of the FDA's necessarily thorough and comprehensive review.

Dialogue continues to be positive and ANGLE is committing substantial management resource to the process.  To support this, ANGLE has taken on additional external support from a number of leading experts with a track record of successful FDA authorisations for similar diagnostic systems. 

Whilst some additional studies are still required, we remain positive about the prospect of achieving FDA authorisation and believe that once achieved, this will give the Company a further major advantage in the market.

Outlook

We have made strong progress advancing our strategy this year through the validation of the Parsortix cell separation system by world class cancer centres.  We have identified ovarian cancer for the first clinical application for the Parsortix system following a successful patient study with the Medical University of Vienna which demonstrated Parsortix's potential to identify ovarian cancer with high sensitivity and specificity where traditional techniques fail.  In the coming year, we are well-funded to focus on the development of research use sales and advance a large scale study in ovarian cancer to establish Parsortix as a diagnostic tool to enable clinicians to choose the most appropriate treatment thereby improving patient outcomes.

We are confident that we have the foundations in place to take a significant share of the cancer diagnostic / liquid biopsy market and look forward to reporting further progress in the year ahead.

Garth Selvey

Chairman

22 July 2015

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 APRIL 2015

		2015		2014 (Restated*)
	Note	£'000		£'000
Operating costs		(3,878)		(2,211)
Operating profit/(loss) from continuing operations		(3,878)		(2,211)
Net finance income/(costs)		9		13
Profit/(loss) before tax from continuing operations		(3,869)		(2,198)
Tax		-		-
Profit/(loss) for the year from continuing operations		(3,869)		(2,198)
Profit/(loss) from discontinued operations	5	(18)		960
Profit/(loss) for the year		(3,887)		(1,238)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations		92		(96)
Other comprehensive income/(loss)		92		(96)
Total comprehensive income/(loss) for the year		(3,795)		(1,334)
Profit/(loss) for the year attributable to:
Owners of the parent
From continuing operations		(3,576)		(2,024)
From discontinued operations		(18)		960
Non-controlling interests
From continuing operations		(293)		(173)
From discontinued operations		-		(1)
Profit/(loss) for the year		(3,887)		(1,238)

Total comprehensive income/(loss) for the year attributable to:
Owners of the parent
From continuing operations		(3,421)		(2,158)
From discontinued operations		(18)		960
Non-controlling interests
From continuing operations		(356)		(135)
From discontinued operations		-		(1)
Total comprehensive income/(loss) for the year		(3,795)		(1,334)
Earnings/(loss) per share
From continuing operations
Basic and Diluted (pence per share)		(8.12)		(4.87)
From discontinued operations
Basic and Diluted (pence per share)		(0.04)		2.13
From continuing and discontinued operations	6
Basic and Diluted (pence per share)		(8.16)		(2.74)

* Comparative figures have been restated to show continuing operations separately from discontinued operations - Note 5.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 APRIL 2015

	Note	2015		2014
		£'000		£'000
ASSETS
Non-current assets
Other receivables	8	-		601
Property, plant and equipment		423		139
Intangible assets	7	1,149		1,142
Total non-current assets		1,572		1,882
Current assets
Inventories		197		52
Trade and other receivables	8	1,008		328
Cash and cash equivalents		8,443		3,898
Total current assets		9,648		4,278
Total assets		11,220		6,160
EQUITY AND LIABILITIES
Equity
Issued capital	9	5,897		4,524
Share premium		25,299		18,414
Share based payments reserve		432		432
Other reserve		2,553		2,553
Translation reserve		33		(122)
Retained earnings		(23,260)		(19,777)
ESOT shares		(102)		(102)
Equity attributable to owners of the parent		10,852		5,922
Non-controlling interests		(763)		(407)
Total equity		10,089		5,515
Liabilities
Current liabilities
Trade and other payables		1,131		645
Total current liabilities		1,131		645
Total liabilities		1,131		645
Total equity and liabilities		11,220		6,160

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 APRIL 2015

	2015		2014 (Restated*)
	£'000		£'000
Operating activities
Profit/(loss) before tax from continuing operations	(3,869)		(2,198)
Adjustments for:
Depreciation of property, plant and equipment	111		57
(Profit)/loss on disposal of property, plant and equipment	1		(12)
Amortisation and impairment of intangible assets	204		99
Exchange differences	(41)		33
Net finance (income)/costs	(9)		(13)
Share based payments	111		61
Operating cash flows before movements in working capital:	(3,492)		(1,973)
(Increase)/decrease in inventories	(191)		22
(Increase)/decrease in trade and other receivables	(191)		44
Increase/(decrease) in trade and other payables	452		(5)
Net cash from/(used in) operating activities	(3,422)		(1,912)
Investing activities
Purchase of property, plant and equipment	(325)		(83)
Purchase of intangible assets	(105)		(270)
Interest received	11		11
Net cash from/(used in) investing activities	(419)		(342)
Financing activities
Net proceeds from issue of share capital	8,257		-
Net cash from/(used in) financing activities	8,257		-
Net increase/(decrease) in cash and cash equivalents from continuing operations	4,416		(2,254)
Discontinued operations
Net cash from/(used in) operating activities	118		(69)
Net cash from/(used in) investing activities	8		4,395
Net increase/(decrease) in cash and cash equivalents from discontinued operations	126		4,326
Net increase/(decrease) in cash and cash equivalents	4,542		2,072
Cash and cash equivalents at start of year	3,898		1,828
Effect of exchange rate fluctuations	3		(2)
Cash and cash equivalents at end of year	8,443		3,898

* Comparative figures have been restated to show continuing operations separately from discontinued operations - Note 5.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 APRIL 2015

	Equity attributable to owners of the parent
			Share based
	Issued	Share	payments	Other	Translation
	capital	premium	reserve	reserve	reserve
	£'000	£'000	£'000	£'000	£'000
At 1 May 2013	4,524	18,414	370	2,553	12
For the year to 30 April 2014
Consolidated profit/(loss)
Other comprehensive income
Exchange differences on translating foreign operations					(134)
Total comprehensive income					(134)
Share based payments			62
Disposal of controlling interest
	___ ______	___ _______	___ ______	___ ______	___ ______
At 30 April 2014	4,524	18,414	432	2,553	(122)
For the year to 30 April 2015
Consolidated profit/(loss)
Other comprehensive income
Exchange differences on translating foreign operations					155
Total comprehensive income					155
Issue of shares	1,373	6,885
Share based payments			111
Released on forfeiture			(1)
Released on exercise			(16)
Impairment of IP			(94)
	___ ______	___ _______	___ ______	___ ______	___ ______
At 30 April 2015	5,897	25,299	432	2,553	33
	==========	==========	==========	==========	=========

	Equity attributable to owners of the parent
			Total	Non-
	Retained	ESOT	Shareholders'	controlling	Total
	earnings	shares	equity	interests	equity
	£'000	£'000	£'000	£'000	£'000
At 1 May 2013	(18,673)	(102)	7,098	(311)	6,787
For the year to 30 April 2014
Consolidated profit/(loss)	(1,064)		(1,064)	(174)	(1,238)
Other comprehensive income
Exchange differences on translating foreign operations			(134)	38	(96)
Total comprehensive income	(1,064)		(1,198)	(136)	(1,334)
Share based payments			62		62
Disposal of controlling interest	(40)		(40)	40	-
	___ ________	___ ______	___ _______	___ _______	___ _______
At 30 April 2014	(19,777)	(102)	5,922	(407)	5,515
For the year to 30 April 2015
Consolidated profit/(loss)	(3,594)		(3,594)	(293)	(3,887)
Other comprehensive income
Exchange differences on translating foreign operations			155	(63)	92
Total comprehensive income	(3,594)		(3,439)	(356)	(3,795)
Issue of shares			8,258		8,258
Share based payments			111		111
Released on forfeiture	1		-		-
Released on exercise	16		-		-
Impairment of IP	94		-		-
	___ ________	___ ______	___ _______	___ _______	___ _______
At 30 April 2015	(23,260)	(102)	10,852	(763)	10,089
	===========	==========	==========	==========	==========

NOTES TO THE PRELIMINARY ANNOUNCEMENT

FOR THE YEAR ENDED 30 APRIL 2015

1       Preliminary announcement

The preliminary announcement set out above does not constitute ANGLE plc's statutory Financial Statements for the years ended 30 April 2015 or 2014 within the meaning of section 434 of the Companies Act 2006 but is derived from those audited Financial Statements. The auditor's report on the consolidated Financial Statements for the year ended 30 April 2015 and 2014 is unqualified and does not contain statements under s498(2) or (3) of the Companies Act 2006. 

The accounting policies used for the year ended 30 April 2015 are unchanged from those used for the statutory Financial Statements for the year ended 30 April 2014, except as referred to in Note 2. The 2015 statutory accounts will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

2       Compliance with accounting standards

While the financial information included in this preliminary announcement has been computed in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS.

Accounting standards adopted in the year

No new accounting standards that have become effective and adopted in the year 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.

The Revenue accounting policy has been rewritten and a number of other accounting policies have been slightly amended and updated for readability. 

3       Going concern

The Financial Statements have been prepared on a going concern basis which assumes that the Group will be able to continue its operations for the foreseeable future.

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. 

The Directors have prepared and reviewed the financial projections for the 12 month period from the date of signing of these Financial Statements. Based on the level of existing cash and the projected income and expenditure (the timing of some of which is at the Group's discretion), 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 management's 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 of Other receivables - investments held at fair value (Note 8)

Valuation of Other receivables - investments relates to the value attributed to a retention payment due in December 2015 from the disposal of Geomerics Limited. Judgements are required in a number of areas when determining valuation.

Valuation, amortisation and impairment of 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. Judgements are required in both assessing whether the criteria are met and then in applying the rules. Intangible assets are amortised over their useful lives. Useful lives are assessed by reference to observable data (e.g. remaining patent life) and taking into consideration specific product (e.g. product life cycle) and market characteristics (e.g. estimates of the period that the assets will generate revenue).  Each of these factors is periodically reviewed for appropriateness. Changes to estimates in useful lives may result in significant variations in the amortisation charge.

The Group is required to review, at least annually, whether intangible assets have suffered any impairment. The recoverable amount is determined using, amongst others, value-in-use calculations. The use of this 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, the number of options expected to vest and liquidity discounts.

5       Discontinued operations

In the Interim Report for the six months ended 31 October 2014, the Group announced its intention to discontinue its Management services business. The Group initiated an orderly wind-down of the Management services business during the financial year which was completed by the end of the financial year apart from some residual payables and receivables, nearly all of which have been settled since the year-end. The Group also disposed of Geomerics Limited (Note 8) in the prior year and the subsequent residual transactions from this have been treated as a discontinued operation. In accordance with IFRS 5 Non-current assets held for sale and discontinued operations these businesses have been classified as discontinued operations and the prior periods have been restated to show these discontinued operations separately from continuing operations. A summary of the results is set out below:

Results of discontinued operations

	2015		2014
	£'000		£'000
Revenue	586		801
Operating costs	(639)		(1,273)
Share based payments	-		(1)
Change in fair value	35		1,334
Finance income	-		99
Profit/(loss) for the year	(18)		960

The Consolidated Statement of Cash Flows shows the net cash used in the operating and investing activities of the discontinued operations. The impact of the discontinued operations on the Statement of Financial Position is minimal.

6       Earnings/(loss) per share

The basic and diluted earnings/(loss) per share is calculated on the loss for the year from continuing and discontinued operations of £3.9 million (2014: £1.2 million).

In accordance with IAS 33 Earnings per share 1) the "basic" weighted average number of ordinary shares calculation excludes shares held by the Employee Share Ownership Trust (ESOT) as these are treated as treasury shares and 2) the "diluted" weighted average number of ordinary shares calculation excludes potentially dilutive ordinary shares from instruments that could be converted. Share options are potentially dilutive where the exercise price is less than the average market price during the period. Due to the losses in 2015 and 2014, share options are non-dilutive for those years and therefore the diluted loss per share is equal to the basic loss per share.

The basic and diluted earnings/(loss) per share are based on a weighted average of 47,625,033 ordinary 10p shares (2014: 45,129,800).

7       Intangible assets

	Intellectual		Computer		Goodwill		Product				Total
	property		software				development
	£'000		£'000		£'000		£'000				£'000
Cost or deemed cost
At 1 May 2013	524		12		98		973				1,607
Additions	30		1		-		217				248
Reclassification	62		-		-		(62)				-
Disposals	(400)		(2)		(98)		-				(500)
Exchange movements	(10)		-		-		(83)				(93)
At 30 April 2014	206		11		-		1,045				1,262
Additions	66		1		-		37				104
Exchange movements	14		-		-		109				123
At 30 April 2015	286		12		-		1,191				1,489
Amortisation and impairment
At 1 May 2013	400		10		98		19				527
Charge for the year	-		1		-		98				99
Disposals	(400)		(2)		(98)		-				(500)
Exchange movements	-		-		-		(6)				(6)
At 30 April 2014	-		9		-		111				120
Charge for the year	-		1		-		109				110
Impairment	94		-		-		-				94
Exchange movements	-		-		-		16				16
At 30 April 2015	94		10		-		236				340
Net book value
At 30 April 2015	192		2		-		955				1,149
At 30 April 2014	206		2		-		934				1,142

The carrying value of intangible assets is reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The recoverable amount is assessed on the basis of "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.

"Product development" relates to internally generated assets that were 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.

8       Trade and other receivables

	2015		2014
	£'000		£'000
Current assets:
Trade receivables	4		126
Other receivables - investments	636		-
Other receivables	124		55
Prepayments and accrued income	244		147
	1,008		328

"Other receivables - investments" relates to the Group's investment in Geomerics (computer games middleware and computer graphics) which was sold in December 2013. There is a retention payment of £0.7 million due to be received in December 2015 which has been designated at fair value (discounted for the time value of money). As the retention payment is due within 12 months this has been reclassified from "Non-current assets - Other receivables" to "Current assets - Trade and other receivables".

9       Share capital

The Company has one class of ordinary shares which carry no right to fixed income and at 30 April 2015 had 58,974,338 ordinary shares of 10p each allotted, called up and fully paid (2014: 45,243,059).

The Company issued 13,481,279 new ordinary shares with a nominal value of £0.10 at an issue price of £0.65 per share in a placing, subscription and offer of shares, realising proceeds of £8.2 million, net of costs. Shares were admitted to trading on AIM as to 11,173,587 in February 2015 for the placing and subscription and 2,307,692 in March 2015 for the offer.

The Company issued 250,000 new ordinary shares with a nominal value of £0.10 at an exercise price of £0.2575 per share as a result of the exercise of share options by employees. Shares were admitted to trading on AIM as to 166,667 in March 2015 and 83,333 in April 2015.

10    Shareholder communications

Copies of this announcement are posted on the Company's website www.ANGLEplc.com.

The Annual General Meeting of the Company will be held at 2:00pm on Wednesday 30 September 2015 at the Surrey Technology Centre, 40 Occam Road, the Surrey Research Park, Guildford, GU2 7YG. Notice of the meeting will be enclosed with the audited Statutory Financial Statements.

The audited Statutory Financial Statements for the year ended 30 April 2015 are expected to be distributed to shareholders by 5 September 2015 and will subsequently be available on the Company's website or from the registered office, 3 Frederick Sanger Road, Surrey Research Park, Guildford, GU2 7YD.

This preliminary announcement was approved by the Board on 22 July 2015.

 

END

 

 

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