Angle PLC Announces Trading and Business Update
Revenue recognised for 2023 expected to be up 120% at c. £2.2 million with sales secured in 2023 expected to be c. £3.3 million
Revenue recognised for 2024 expected to treble compared to 2023
Cash runway extended into Q2 2025
GUILDFORD, SURREY / ACCESSWIRE / November 9, 2023 / ANGLE plc ("the Company") (AIM:AGL)(OTCQX:ANPCY), a world-leading liquid biopsy company with innovative circulating tumour cell (CTC) diagnostic solutions for use in research, drug development and clinical oncology, is today providing a trading and business update.
Trading update - Strong growth in sales
The Company expects revenue recognised for 2023 will be c. £2.2 million, which is an increase of 120% over revenue achieved in 2022 but below current market consensus of c. £3.0 million. New sales secured in 2023 are expected to be c. £3.3 million however revenue recognition for some of these sales will fall into the 2024 financial year. Gross margin for H2 is expected to be higher than H1 reflecting the product-service mix and, together with tight cost control, to result in the cash position at 2023 year end being in line with consensus at c. £15 million.
Streamlining of the Services business outlined below is anticipated to result in c. £0.5 million of non-cash impairments and c. £0.7 million of one-off cash costs in 2023 resulting in an operating loss for the year of c. £21 million, which remains in line with consensus despite the additional charges. The streamlining is expected to deliver cost savings of c. £3 million per annum in 2024 resulting in the extension of the cash runway into Q2 2025.
Revenue for the Products business has continued to grow in line with our expectations and will be further supported by the newly established distributor network as well as new product launches. The Pharma Services business has continued to gain commercial traction although the slowdown in biopharma spending has led to an elongation of the sales process with some sales falling away. Despite this, progress is being made towards securing retained relationships with large pharma customers and launching additional Parsortix based tests to drive increased sales.
Revenue recognised for 2024 is expected to treble compared to 2023 with the growth of distributor sales, and with the planned launches of the Portrait PD-L1 test (services), see separate announcement today, the Portrait+ antibody staining kit (products), and the Parsortix BiDetectTM DNA solutions combining ctDNA and CTC-DNA analysis (products and services) all contributing to the Company's sales growth ambitions.
Business update - Streamlining services business extends cash runway
With the expected growth in molecular solutions requiring investment and considering ongoing adverse market conditions, we have made the decision to streamline our Services operations by closing the US clinical laboratory and focusing on a single UK-based centre of excellence. We have developed solutions for sample stability so that the physical location of the laboratory does not limit its capability to service customers across different geographies. The streamlining will enable us to focus our investment in multiple molecular platforms for different applications in a single location without duplicating these significant costs.
The extension of our molecular capability across multiple molecular platforms will also support product sales to the customers of the installed base of these molecular platforms as it will drive the generation of a stream of clinical evidence of the value of such analysis, the first of which we expect to publish before the year end.
ANGLE Founder and Chief Executive, Andrew Newland, commented:
"The build-up of revenues has been slower than hoped but is moving in the right direction and the Company expects strong revenue growth year-on-year. The cost savings from the streamlining of our clinical services business will now extend the forecast cash runway into Q2 2025 and we look forward to progressing the planned launches of new products and services to drive widespread adoption of the Company's Parsortix system to support precision medicine in cancer."
For further information:
ANGLE plc | |
Andrew Newland, Chief Executive Ian Griffiths, Finance Director | +44 (0) 1483 343434 |
Berenberg (NOMAD and Joint Broker) Toby Flaux, Ciaran Walsh, Milo Bonser | +44 (0) 20 3207 7800 |
Jefferies (Joint Broker) Thomas Bective, Shaam Vora, Alexander Ind | +44 (0) 20 7029 8000 |
FTI Consulting Simon Conway, Ciara Martin Matthew Ventimiglia (US) | +44 (0) 203 727 1000 +1 (212) 850 5624 |
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.
For Frequently Used Terms, please see the Company's website on https://angleplc.com/investor-relations/glossary/
Notes for editors
About ANGLE plc
ANGLE is a world-leading liquid biopsy company with innovative circulating tumour cell (CTC) diagnostic solutions for use in research, drug development and clinical oncology using a simple blood sample. ANGLE's FDA cleared and patent protected circulating tumour cell (CTC) harvesting technology known as the Parsortix® PC1 System enables complete downstream analysis of the sample including whole cell imaging and proteomic analysis and full genomic and transcriptomic molecular analysis.
ANGLE's commercial businesses are focusing on diagnostic products and clinical services. Diagnostic products include the Parsortix® system and associated consumables. The clinical services business is offered through ANGLE's GCP-compliant laboratories. Services include custom made assay development and clinical trial testing for pharma.
Over 80 peer-reviewed publications have demonstrated the performance of the Parsortix system. For more information, visit www.angleplc.com
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SOURCE: ANGLE plc
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