TIDMINC
RNS Number : 9158Y
Incanthera PLC
18 May 2021
18 May 2021
Incanthera plc
("Incanthera" the "Company")
RESULTS FOR THE YEARED 31 MARCH 2021
Incanthera plc (AQSE: INC), the specialist oncology company
focused on innovative technologies in oncology and dermatology is
pleased to announce results for the year ended 31 March 2021.
Incanthera is dedicated to improving treatment options with
therapeutics combined with targeted delivery technologies to
transform the future of healthcare.
The year end results mark the first full anniversary of trading
following the successful flotation of the Company to the AQSE
Growth Market in February 2020.
Highlights:
-- Commercial discussions with two global cosmetic companies for
Sol skin cancer technology continue to progress
-- Promotion to top Apex sector of AQSE awarded having met qualifying criteria
-- Technology portfolio fully patent protected and strengthened
through the filing of a new patent which gives extended patent
protection to Sol to 2040
-- GBP1.14 million further funding through recently
oversubscribed placing with existing and new investors
-- Directors' and management's further investment
-- Financial performance for the year in line with the Board's expectations
Financial Highlights:
-- Total group loss for the year: GBP905,000, 2020: GBP1,128,000
-- Operating expenses increased in line with Sol progression: GBP979,000, 2020: GBP933,000
-- Year end cash position strengthened following the successful
fundraise, 2021: GBP957k, 2020: GBP392k
Simon Ward, Chief Executive Officer, commented:
"This has been a very important first year on the public markets
for Incanthera.
The public stage has provided a great opportunity for us and we
have concentrated on delivering operational successes through our
evolutionary technology Sol, now the subject of discussion with two
global cosmetics companies. These discussions continue to progress
and we look forward to making further updates when we are able.
We are also delighted at the result of our recent placing,
securing further funding from existing shareholders and welcoming
new investors, which puts us in an excellent position to conclude
the Sol discussions and to continue to look at the promise of new
opportunities to deliver returns to Shareholders.
We are immensely proud and grateful to have marked our first
public year with these operational and financial achievements and
we look forward to the year ahead with all the opportunity and
promise that we can see."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (which
forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).
The directors of the Company take responsibility for this
announcement.
For further enquiries:
Incanthera plc:
www.incanthera.com
Tim McCarthy, Chairman
tim.mccarthy@incanthera.com +44 (0) 7831 675747
Simon Ward, Chief Executive Officer
simon.ward@incanthera.com +44 (0) 7747 625506
Suzanne Brocks, Head of Communications
suzanne.brocks@incanthera.com +44 (0) 7776 234600
Aquis Exchange Corporate Adviser:
Cairn Financial Advisers LLP
Jo Turner/James Lewis/Mark Rogers +44 (0) 20 7213 0880
Broker:
Stanford Capital Partners Ltd
Patrick Claridge/Tom Price/John Howes/Bob
Pountney +44 (0) 20 3815 8880
Notes to Editors
Incanthera is a specialist oncology company focused on
transforming cancer treatment by creating environments in which
cancer cannot survive. It seeks to identify and develop innovative
solutions to current clinical, commercially relevant unmet needs,
utilising new technology from leading academic institutions.
The Company's current lead product and focus is Sol, a
potentially innovative topical product for the treatment of solar
keratosis and the prevention of skin cancers. This has achieved
proof of concept and the Company is now focussed upon delivering
Sol to a commercial partner.
The Company originated from the Institute of Cancer Therapeutics
("ICT") at the University of Bradford and has acquired and
developed a portfolio of specific cancer-targeting therapeutics
through a Pipeline Agreement with the ICT and other corporate
acquisitions.
Incanthera's strategy is to develop each candidate in the
portfolio from initial acquisition or discovery to securing its
future through commercially valuable partnerships at the earliest
opportunity in its development pathway.
For more information on the Company please visit:
www.incanthera.com
@incantheraplc
Incanthera plc
RESULTS FOR THE YEARED 31 MARCH 2021
Chairman's Statement
Our Business
Health is our focus. It is also Incanthera's mission and
purpose, to find innovative treatments and technologies to provide
ever better options for more targeted, holistic healthcare.
Incanthera's portfolio of novel cancer medicines utilises
targeted technology and delivery systems, addressing the oncology
spectrum.
These technologies now show the opportunity to transcend across
other treatment areas and the success of this year, under review,
is owed to the successful progression of our skin cancer
technology, Sol, which combines the spheres of oncology and
dermatology.
Introduced to our portfolio in 2018, we quickly realised its
potential to address an area of unmet medical need in the oncology
and dermatology field.
Progression and Evolution
Sol formed the focus for our flotation on the AQSE Growth Market
in 2020 and the enthusiasm and potential we saw in the technology,
was matched by the support of the investment community, resulting
in our successful admission in February 2020.
Despite the immediate global shutdown following our flotation,
our team immediately went to work to further develop and refine the
Sol formulation which resulted in the very successful study results
we reported in September last year.
The study data on Sol's successful permeation across the skin
barrier and excellent safety profile on human skin surpassed our
expectations, strengthening the technology's commercial potential
and valuation, which was further enhanced through the filing of a
new patent which will give extended patent protection to Sol to
2040.
With such strong data and enhanced awareness, we have begun to
introduce Sol to a number of potential commercial partners and, as
advised in a commercial update in February 2021, we have
prioritised discussions with two Global cosmetic companies. These
discussions continue to progress and we look forward to providing
further updates when we are able.
It is a reflection of the Global situation in the past 12-18
months that whilst we were fortunate to progress our technologies
towards commercial negotiations, many companies were faced with
wide ranging efforts to manage their own businesses and, for that
reason, discussions understandably have taken longer than
originally anticipated.
In order to continue negotiations confidently and to ensure we
fulfilled our responsibilities to secure ongoing financial security
for the business, we undertook a fundraising in March.
We were delighted that this resulted in an oversubscribed
Placing, raising GBP1.14m for the company, which we announced on 23
March 2021.
These funds provide the security from which to conclude
negotiations on Sol in a confident manner and also provide a cash
runway into the second half of 2022.
In addition, the Directors and management team demonstrated
their ongoing confidence with further share purchases announced on
19 April 2021.
Whilst the focus this year has been on Sol, we continue our work
with the ICT at Bradford University to look at exciting and new
developments there, and to consistently review and evaluate our
portfolio for commercial opportunity and partnerships.
Ou t l o o k
It has been an exceptional year for Incanthera, one that was
always going to be important in our first full year as a public
company.
I would like to pay tribute to the team at Incanthera who have
worked harder and more determinedly than ever, in spite of often
challenging circumstances in the past year, as they have all
juggled working from home, home schooling and wider family
commitments and challenges.
I thank them all for their dedication to bring this year to the
conclusion we have, and I also extend thanks to our advisers, for
their guidance and support.
In concluding I thank you, our Shareholders, existing and new,
for your continued belief, ongoing encouragement and investment and
support of Incanthera. We are delighted to have delivered solid
progress in our first year as a public company and we look forward
to the future with anticipation.
Tim Mc C a rthy
Cha ir m an
18 May 2021
Chief Executive's Review
Incanthera has marked its first year as a public company with
the emphasis on operational success.
Our evolutionary technology, Sol, is the subject of ongoing
commercial discussions with two Global cosmetic companies.
The Company was founded in 2010, with the aim of bringing
innovative novel technologies to patients. It is very pleasing to
be in the position of reporting on a year which has seen that
vision come closer to fulfilment.
S tr a t e g i c pr o gr ess
Incanthera came to the public stage through the flotation on
AQSE in February 2020, on the basis of developing the technology
behind Sol towards a commercial partnership agreement.
The investment received at the IPO has allowed us to progress
the refinement of our Sol formulation to deliver the exceptional
permeation and sensitisation study results reported in September
2020.
The strength of the data surpassed our expectations,
considerably strengthening Sol's commercial value and potential for
licensing.
The study results proved beyond doubt that Sol has a unique
capability to permeate the skin barrier and deliver effective
treatment at the site of pre-cancerous and cancerous conditions in
a formulation that is as "non-irritant" as some currently marketed
baby sun protection products.
This is breakthrough news for skin cancer patients, offering a
targeted and safe approach and an opportunity to prevent
development of skin cancer.
The combined package of proven efficacy and safety delivers an
even stronger commercial profile, which has concentrated
discussions towards a potential licensing partnership. This is
further enhanced by the filing in July 2020 which will protect our
Sol technology until 2040.
Commercial discussions with a number of interested potential
partners are now active with concentration on two Global cosmetics
companies, as announced in March 2021. These discussions continue
to progress and the management is pleased with the feedback from
both groups. We will look to update the market further as and when
we are able.
In Summary
The public listing on AQSE last year provided a platform to
engage our long-term shareholders in opportunities for the future,
but also to bring in new investment and new investors.
We are delighted to have delivered the operational successes and
to have secured further funding recently which puts us in an
excellent position to conclude the Sol discussions and to continue
to look at the promise our technologies and delivery mechanisms can
bring to our future commercial success.
Our heritage from the Institute of Cancer Therapeutics (ICT) at
the University of Bradford, is something we are proud of. We
continue to work with the team there, who produce ground-breaking
technologies in oncology.
Outlook
Against the backdrop of such an extraordinary time in all of our
lives, I am very aware that to progress, and to be in a position to
look to the future is one that is not afforded to every Company
this year.
I am immensely grateful and proud that our team has shown the
talents to produce such successful results whilst protecting our
assets and financially securing our immediate future.
The continued support of our Shareholders and the new investment
in our company is testament to the achievements and enormous
potential we have in our existing portfolio and opportunities for
the future. We look forward to continuing to enhance and build our
commercial and professional relationships, expertise and ability to
bring novel medicines to patients.
Simon Ward
Chief Executive Officer
18 May 2021
Financial Review
The financial performance for the year ended 31 March 2021 was
in line with expectations.
Lo sses
The total group loss for the year was GBP905k (31 March 2020:
GBP1,128k) including a charge for share-based compensation of
GBP37k (2020: GBP293k). Operating expenses excluding share-based
compensation have increased in line with our ambitions for
progression of Sol, to GBP979k (2020: GBP933k).
Sh ar e -b a sed c om pe n sa ti o n
Acc o u n ti n g s t a n d a r ds r e q ui re a ch ar ge to be m
a de a g ain st t he gr a nt of s h a re o pt io ns a nd r e co g
nis ed in the C o n so l i d a t ed S t a t eme nt of C omp r e h e
ns i ve In c om e. T his amo u n t ed to GBP 37k ( 2 0 20: GBP 2 93
k) a nd has no i m p a ct on c a sh fl o w s.
Hea dc o u nt
Average headcount of the Group for the year was 6 (2020: 5).
T a x a t i o n
The Group has elected to claim research and development tax
credits under the small or medium enterprise research and
development scheme of GBP111k (2020: GBP98k).
Sh ar e c ap it al
The balance of funds from the subscription agreements, entered
into at the time of last year's IPO, were received on the 28(th)
September 2020, realising the final GBP350k of investment. The
subscription comprised of the issue of 3,684,211 ordinary shares of
2p issued at the IPO price of 9.5p.
Whilst the global pandemic has had implications for us all, the
impact on the Group and the continued development of Sol has been
minimal. However, in one key area the situation has held us back,
and that is in the progression towards a license deal. In turn,
this delay has led us to raise additional funds in order to provide
financial security . The placing was a resounding success, raising
GBP1.145m and comprising the issue of 9,538,750 ordinary shares of
2p at an issue price of 12p per share. I n conjunction with this
placing, on the 4th April 2021, 8,500,000 warrants were issued to
participating investors. These warrants were issued at an exercise
price of 20p and have an expiry date of 10 years from placing.
Cas h fl o ws and fi n ancial po si ti on
The cash position at 31 March 2021 increased to GBP957k (31
March 2020: GBP392k). Expenditure on development of the Sol
programme, and recurring general and administrative costs were
offset by the placing of the 28th March (GBP1,145k before expenses)
and receipt of the 2020 tax credit (GBP98k).
Div i d e n d s
N o dividend is recommended (2020: nil) due to the early stage
of the development of the Group.
Lo ss P er Sh ar e
The basic and diluted loss per share was 1.44p (2020:
2.27p).
Y ea r - e n d c ash and s ho r t -t e rm i n v est m e nts, and
c ash on d e po sit h el d:
The increase in year-end cash arises from our fundraise in March
2021 which raised GBP1,145k before expenses.
Highlighted Principal Risks and Uncertainties
C o v i d - 1 9
The Global Pandemic continues, and whilst vaccination roll-out
programmes escalate worldwide, the risk of variants and future
restrictions may continue to pose a threat to the continuation of
business operations, until the wider picture is more secure.
Continuation of the pandemic for a sustained period of months
may affect:
-- O u r ability to raise further finance as a consequence of a
depressed funding environment
-- Our ability to conduct and conclude partnering
discussions
Mitigating Factors:
All government guidance is monitored closely and followed
immediately by advisory notices to all employees, and provision of
the appropriate guidance to advisors and investors, where
necessary, via Regulatory announcement.
Laura Brogden
Chief Financial Officer
18 May 2021
C o n s o l i d a t e d S ta t e m e n t o f Comprehensive Income
For the Year ended 3 1 M a rch 2021
As a t As a t
--------------------------------------------------
3 1 March 3 1 March
--------------------------------------------------
2021 2021
GBP ' 000 GBP ' 000
-------------------------------------------------- ----------------- -----------------
Direct Costs
Operating Expenses
Operating expenses (979) (933)
Share based compensation (37) (293)
-------------------------------------------------- ----------------- -----------------
Total operating expenses (1,016) (1,226)
-------------------------------------------------- ----------------- -----------------
Operating Loss (1,016) (1,226)
-------------------------------------------------- ----------------- -----------------
Loss on ordinary activities before taxation (1,016) (1,226)
Taxation 111 98
-------------------------------------------------- ----------------- -----------------
Loss and total comprehensive expense attributable
to equity holders of the parent for the year (905) (1,128)
-------------------------------------------------- ----------------- -----------------
Loss per share attributable to equity holders of
the parent (pence)
Basic loss per share (pence) (1.44) (2.27)
Diluted loss per share (pence) (1.44) (2.27)
-------------------------------------------------- ----------------- -----------------
C o n s o l i d a t e d a n d C o mpa ny S ta t e m e n ts of F
i n a ncial P o si t i on
A s at 31 M a rch 2021
Group Company
--------------------------------------
As a t As at As a t As at
--------------------------------------
3 1 March 31 March 3 1 March 31 March
2021 2020 2021 2020
GBP ' GBP '
000 GBP'000 000 GBP'000
-------------------------------------- -------------- --------------- -------------- -------------
Assets
Non-current assets
Property, plant and equipment - 3 - -
Intangible assets 655 787 - -
Intercompany Loan 1,156 685
Investments in subsidiary undertaking - - 4,614 4,614
-------------------------------------- -------------- --------------- -------------- -------------
Total non-current assets 655 790 5,770 5,299
Current assets
Trade and other receivables 136 114 34 -
Current tax receivable 108 95 - -
Cash and cash equivalents 957 392 910 346
-------------------------------------- -------------- --------------- -------------- -------------
Total current assets 1,201 601 944 346
-------------------------------------- -------------- --------------- -------------- -------------
Total assets 1,856 1,391 6,714 5,645
-------------------------------------- -------------- --------------- -------------- -------------
Liabilities and equity
Current liabilities
Trade and other payables 165 177 60 4
-------------------------------------- -------------- --------------- -------------- -------------
T ot a l cu rrent li ab il i ti
es 165 177 60 4
-------------------------------------- -------------- --------------- -------------- -------------
Equity
Ave Ordinary shares 1,482 1,217 1,482 1,217
Share premium 5,055 4,443 5,055 4,443
Reorganisation reserve 2,715 2,715 - -
Warrant reserve 1,054 - 468 -
Share based compensation 37 586 37 -
Retained (deficit)/profit (8,651) (7,747) (388) (19)
-------------------------------------- -------------- --------------- -------------- -------------
Total equity attributable to equity
holders of the parent 1,691 1,214 6,654 5,641
-------------------------------------- -------------- --------------- -------------- -------------
Total liabilities and equity 1,856 1,391 6,714 5,645
-------------------------------------- -------------- --------------- -------------- -------------
N o S t a t eme nt of C omp r e h e ns i ve In c ome is
presented in these financial statements for the Parent Company as
provided by Section 408 of the Companies Act 2006. The loss for the
financial year dealt with in the financial statements of the Parent
Company was GBP369k (2020: GBP19k.)
C o nsolidated S ta t e m e n t of C h a n g es in E q u i ty
F o r t he y e ar en ded 31 M a rch 2021
Ordinary Share Reorganisation Warrant Share based Retained
shares premium reserve reserve compensation deficit Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- ----------- -------------- -------- ------------- ----------- ----------
Balance at 31 March
2019 25 7,305 - - 401 (6,727) 1,004
Total comprehensive
expense
for the period - - - - - (1,128) (1,128)
Transactions with
owners
Share issue -
acquisition
of Incanthera R&D
Limited 946 (3,663) 2,715 - - - -
Share issue - cash 180 554 - - - - 734
Share issue - creditor
swap 66 247 - - - - 313
Share based
compensation
- share options - - - - 293 - 293
Share based
compensation
- lapsed options - - - - (108) 108 -
Total transactions
with
owners 1,192 (2,862) 2,715 - 185 108 1,339
---------------------- --------- ----------- -------------- -------- ------------- ----------- ----------
Bala n ce a t 31 M a
rch
2 0 20 1,217 4,443 2,715 - 586 (7,747) 1,214
---------------------- --------- ----------- -------------- -------- ------------- ----------- ----------
Total comprehensive
expense
for the period - - - - - (905) (905)
Transactions with
owners
Warrant
reclassification - - - 586 (586) - -
Share issue- cash 264 612 - 468 - - 1,344
Share based
compensation
- share options - - - - 37 - 37
Total transactions
with
owners 264 612 - 1,054 (549) - 1,381
---------------------- --------- ----------- -------------- -------- ------------- ----------- ----------
Balance at 31 March
2021 1,482 5,055 2,715 1,054 37 (8,651) 1,691
---------------------- --------- ----------- -------------- -------- ------------- ----------- ----------
Consolidated and Company Statements of Cash Flow
F o r t he y e ar en ded 31 M a rch 2021
Gr oup C om pa ny
--------------------------------------------- ------------------------ --------------------------------
Y ear Y ear Y ear Y ear
---------------------------------------------
e nded en ded E nded En ded
3 1 March 3 1 M a 3 1 March 3 1 M a
r ch r ch
2021 20 20 2021 20 20
GBP ' GBP ' 000 GBP ' GBP ' 000
000 000
--------------------------------------------- --------- ------------- ------------------ ------------
Cas h fl o ws fr om ope r a ting a c t
i v i ties
Loss before taxation (1,016) (1,226) ( 369) ( 1 9)
Depreciation and amortisation 135 135 - -
Share based compensation 37 293 37 -
--------------------------------------------- --------- ------------- ------------------ ------------
( 332
(844) (798) ) ( 1 9)
Chang es i n w or k ing capit al
(Increase)/decrease in trade and other
receivables (21) (14) (504) (686)
Increase/(decrease) in trade and other
payables (12) (46) 56 4
Creditor swap - 313 - 313
--------------------------------------------- --------- ------------- ------------------ ------------
Cas h used i n ope r a tio ns (34) 253 (448) (369)
Taxation received 98 27 - -
N et cash used in ope r a ting a c t i
v i ties (779) (5 1 8) (780) (388)
Cas h fl o ws fr om fina ncing a c t i
v i ties
Proceeds from issue of shares 1,495 855 1,495 1,495 855
Issue costs (151) (121) (151) (121)
--------------------------------------------- --------- ------------- ------------------ ------------
N et cash g e n e r a ted fr om fina ncing
a c t i v i ties 1,344 734 1,344 734
--------------------------------------------- --------- ------------- ------------------ ------------
M o v e m en ts in cash a nd cash eq u
i v a lents in t he pe ri od 565 216 564 346
--------------------------------------------- --------- ------------- ------------------ ------------
Cash and cash equivalents at start of period 392 1 7 6 346 -
--------------------------------------------- --------- ------------- ------------------ ------------
Cas h a n d cash eq u i v a lents at end
of pe ri od 957 392 910 346
--------------------------------------------- --------- ------------- ------------------ ------------
Notes to the Financial Statements
1 . Basis of Preparation
T h e c o n so l i d a t e d fi n a nci al s t a t eme n ts h
ave b een p r e p a r ed in a cc o r d a n ce w i th I n t e r n at
ion al F i n a nci al Re p o r ti ng S t a n d a r ds ( ' I F R S
') as a do p t ed by the E u r ope an U n ion, I F R IC i n t e r p
r e t at io ns a nd the C om p ani es Act 2 006 a pp l i c a b le
to c om p ani es op er ati ng u n d er I F R S.
T h e c o n so l i d a t e d fi n a nci al s t a t eme n ts h
ave b een p r e p a r ed u n d er the hi s t ori c al c ost c o n v
e n t ion m o d ified by the r e v al u at ion of c e r t ain fi n
a nci al in s t r u m e n t s.
T h e c o n so l i d a t e d fi n a nci al s t a t eme n ts a re
p r e s e n t ed in S t er li ng ( GBP) a nd r o u n ded to the n e
a r est GBP00 0. T his is the p r ed o mi n a nt f u n c t ion al c
u r r en cy of the G r ou p a nd is the c u r r en cy of the pr i m
a ry e c ono m ic e n v i r o n me nt in w h ich it op er a t es. F
o r e ign t r an s a c t io ns a re a cc o u n t ed in a cc o r d a
n ce w i th the p o l ic i es s et out b el o w.
2. Lo ss per sh are
B a s i c loss per share is calculated by dividing the loss for
the period attributable to equity holders by the weighted average
number of ordinary shares outstanding during the year.
For diluted loss per share, the loss for the year attributable
to equity holders and the weighted average number of ordinary
shares outstanding during the year is adjusted to assume conversion
of all dilutive potential ordinary shares.
As at 31 March 2021, the Group had 15,359,417 (2020: 13,268,628)
share options, warrants and subscriptions outstanding which are
potentially dilutive.
The calculation of the Group's basic and diluted loss per share
is based on the following data:
As a t As at
---------------------------------------------------------
3 1 March 31 March
---------------------------------------------------------
2021 2021
GBP ' 000 GBP'000
--------------------------------------------------------- -------------- --------------
Loss for the year attributable to equity holders
for basic loss and adjusted for the effects of dilution (905) (1,128)
--------------------------------------------------------- -------------- --------------
As a t As at
3 1 March 31 March
2021 2021
GBP ' 000 GBP'000
--------------------------------------------------------- -------------- --------------
Weighted average number of ordinary shares for basic
loss per share 62,926,224 49,642,344
--------------------------------------------------------- -------------- --------------
Effects of dilution:
Share options - -
--------------------------------------------------------- -------------- --------------
Weighted average number of ordinary shares for basic
loss per share 62,926,224 49,642,344
--------------------------------------------------------- -------------- --------------
3 1 March 31 March
2021 2021
GBP ' 000 GBP'000
--------------------------------------------------------- -------------- --------------
Loss per share - basic and diluted (1.44) (2.27)
--------------------------------------------------------- -------------- --------------
The loss and the weighted average number of ordinary shares for
the years ended 31March2020 and 2021 used for calculating the
diluted loss per share are identical to those for the basic loss
per share. This is because the outstanding share options would have
the effect of reducing the loss per ordinary share and would
therefore not be dilutive under the terms of International
Accounting Standard ('IAS') No 33.
3. Dividend
No dividend is recommended (2020: nil) due to the early stage of
the development of the Group.
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(END) Dow Jones Newswires
May 18, 2021 02:00 ET (06:00 GMT)
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