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Sensyne Health PLC   -  SENS   

Sensyne Health Maiden Full Year Results

Released 07:00 07-Oct-2019

RNS Number : 9471O
Sensyne Health PLC
07 October 2019
 

Sensyne Health Maiden Full Year Results

 

 

Oxford, UK; 7 October 2019: Sensyne Health plc (LSE: SENS) ("Sensyne" or the "Company" or the "Group"), the British Clinical AI technology company, today announces its audited full year results for the 12 months ended 30 April 2019.

 

Lord (Paul) Drayson, CEO of Sensyne Health, commented:

 

"I am pleased to report strong progress in our first full year reporting period as a public company, achieving a number of important milestones."

 

 

OPERATING HIGHLIGHTS (INCLUDING POST-PERIOD EVENTS)

·       First major pharmaceutical collaboration agreement for £5m signed with Bayer to accelerate the development of new treatments for cardiovascular disease using Clinical Artificial Intelligence

 

·       Signed agreements with a Fortune 200 company and a data infrastructure specialist to launch and scale our digital health products in the U.S. - see separate press release issued today

 

·          New partnership created with Evotec, Oxford University Innovation, Oxford Sciences Innovation and the University of Oxford called LAB10x to accelerate the commercialisation of the next generation of digital therapeutics and data-driven drug discovery from clinical artificial intelligence research and digital health innovations

 

·        Signing of an agreement with Jefferson Health for the clinical and economic evaluation of Sensyne Health's GDm-Health™ digital therapeutic product and generation of curated patient data within a US hospital system

 

·        Strategic Research Agreement (SRA)s with two further NHS Trusts: George Eliot NHS Trust and Wye Valley NHS Trust

 

   ·       The number of unique patients represented in the data held by NHS partner trusts stands at 2,105,000

 

 ·          20,057,000 patient admissions represented in the data held by NHS partner trusts

 

 ·     Entered into a formal research agreement with the UK MHRA (Medicines and Healthcare products Regulatory Agency) to contribute to the development of methods to validate software algorithms used in digital health - see separate press release issued today

 

FINANCIAL HIGHLIGHTS

·      Total revenues of £0.136m for the year to 30 April 2019 (2018: £0.081m)

·      Research and development expenditure of £9.512m (2018: £2.742m)*

·      Adjusted operating loss from continuing operations of £11.513m (2018: £6.222m)

·      Operating loss of £19.010m for the year to 30 April 2019 (2018: £7.253m)

·      Adjusted cash used in operations of £9.779m (2018: £5.372m)

·      Cash and cash equivalents of £49.252m at 30 April 2019(2018: £4.541m)

·      Adjusted loss per share of £0.10 (2018: £0.06)

          

*Incurred or capitalised net of amortisation, excluding SRAs 

 

Analyst and Investor briefing

Lord Drayson, Chief Executive Officer, and Lorimer Headley, Chief Financial Officer, will present the full year results for analysts and investors today at 12.00 BST. There will be a simultaneous live conference call and webcast. For more details please contact radu@consilium-comms.com at Consilium Strategic Communications.

 

A replay of today's webcast of the meeting and the presentation slides will be available on the investor section of Sensyne Health's website after the event at https://www.sensynehealth.com/investors/investor-hub

 

-ENDS-

 

 

 

 

 

 

 

For more information please contact:

Sensyne Health (www.sensynehealth.com)

+44 (0) 330 058 1845

Lord (Paul) Drayson PhD FREng, Chief Executive Officer

 

Lorimer Headley, Chief Financial Officer

 

 

 

 

Peel Hunt LLP (Nominated Adviser and Broker)

 

+ 44 (0) 20 7418 8900

Dr Christopher Golden

 

James Steel

 

Oliver Jackson

 

Consilium Strategic Communications

+44 (0) 20 3709 5700

Mary-Jane Elliott

 

Sukaina Virji

 

Melissa Gardiner

 

sensynehealth@consilium-comms.com

 

About Sensyne Health

Sensyne Health plc is a healthcare technology company that creates value from accelerating the discovery and development of new medicines and improving patient care through the analysis of real-world evidence from large databases of anonymised patient data in collaboration with NHS Trusts. These anonymised patient data are ethically sourced in that any analysis of anonymised patient data (and hence the Company's access to it) must be pre-approved for each programme on a case-by-case basis by the relevant NHS Trusts. This is to ensure that the purpose of the anonymisation and the proposed analysis are subject to appropriate ethical oversight and information governance, including conformance with NHS principles, UK data protection law and applicable regulatory guidance. Sensyne Health is an early signatory to the Department of Health and Social Care's 'Initial Code of Conduct for data-driven health and care technology'.

Sensyne Health is listed on the AIM Market of the London Stock Exchange (SENS.L).

For more information, please visit: www.sensynehealth.com

 

 

 

 

 

 

 

 

 

 

 

 

Chairman's statement

Building a world class business

 

It is a great privilege to be delivering Sensyne Health's first Chairman's Statement following the Company's initial public offering in August 2018.

 

Our strategy

Sensyne Health links the pharmaceutical sector with the clinicians who care for the patients and collect information about the progression of medical conditions. This enables pharmaceutical companies to use insights derived from clinical artificial intelligence to develop better-targeted drugs with a higher chance of successful patient outcomes. We describe Sensyne Health's role as a "docking station" between the providers of data and those who need it to guide medical innovation, and we are proud to provide this connection ethically and efficiently while protecting public trust in how their data is used.

 

Artificial intelligence is a technology which worries some people. It suggests decision making by machines, loss of human control and the potential use of data for unauthorized purposes. There is no data more sensitive than personal medical data, and the public is rightly concerned about global technology companies having access to such information. It is to address this concern that Lord Drayson, Sensyne Health's CEO, conceived our business

model, which I believe is unique and brilliant. No other company in the world, to my knowledge, provides the same guarantee of anonymity of patients' data while being able to make the most of the medical and social opportunities presented by such a data set.

 

Each NHS Trust which provides data to Sensyne Health is a shareholder, and also benefits by way of a royalty on revenue generated by use of that data.

 

It is pleasing that so many enlightened UK investment institutions have recognised the importance of Sensyne Health's mission and given the Company such unequivocal support, even against a backdrop of the UK's turbulent politics and uncertain economic future. They have seen the size of the opportunity and the unique benefits of the NHS data set, and the opportunity has also been recognised by influential partners, such as Bayer, Jefferson Health in the US, Microsoft, EY, JPMorgan and Peel Hunt, who provide strategic support. The Company is grateful to all of them.

 

Recognition and thanks should also be given to the Sensyne Health executive team, who have achieved so much in a relatively short period.

 

Board and governance

We have an exceptionally talented and well-balanced Board encompassing members experienced in the fields of politics, medicine, finance, technology, engineering, law and accountancy. Recognition of their efforts should not be overlooked.

 

On behalf of the Board, I would like to thank Sir John Bell for his significant contribution to the Company as Chairman until October 2018 when he stepped down from the Board.

 

Success in our chosen field will depend upon scale and, in preparation for growth and reflecting our determined adherence to the highest ethical standards, we have chosen to adopt, where possible, standards of corporate governance in excess of the requirements of our AIM listing.

 

Our people

The best companies strive to recruit the best people, and their ability to do so measures future commercial success. Artificial Intelligence is a relatively new area and is experiencing huge growth. People with the necessary skills are in unprecedented demand and Sensyne Health has to compete in a global marketplace for these skills.

 

In the year since our IPO, we have done exceptionally well. At IPO we had 41 employees, and today we have over 80. This is both a reflection of the excitement generated by our business model and the hard work of the team in finding the right people. However, the demand for technical employees with appropriate skills is growing faster than supply, and salary inflation in our sector will accelerate. Recruitment will remain a corporate priority for the foreseeable future.

 

Outlook

From the outset, Sensyne Health has attracted much attention in the medical world - and all of it has been positive. Lord Drayson and his team have succeeded in communicating the Company's vision to the investment community, the media, the Government, the pharmaceutical industry and healthcare providers. Sensyne Health sits as an innovator at the interface of computer and medical science and at the interface of business and society.

 

Since the IPO, the Company has delivered on the promises it made at that time. The past year has been instructive about the importance of what we are doing and the things we need to do to continue our success. Political uncertainties and recent events in the investor community have posed challenges this year, however, the Sensyne Health team are determined to ensure that the quality of the commercial opportunity the Company is pursuing will be reflected in the creation of value for shareholders.

 

The Company has big ambition and truly exciting prospects.

 

Charles Swingland (Non-Executive Chairman)

 

Chief Executive Officer's statement

Delivering on our strategy

 

Sensyne Health's mission is to meet the challenge of rising healthcare costs and declining productivity in the discovery of new medicines, by bringing the power of clinical artificial intelligence to the analysis of ethically sourced, anonymised patient data.

 

Our unique approach is based upon four strategic elements:

 

• a double bottom line business model that creates value for patients and shareholders and shares that value

with the NHS via equity in the Company and a share of revenues;

 

• providing a docking station between the NHS and the life sciences industry that enables ethically sourced, anonymised patient data to be analysed using Clinical AI to accelerate medical research and improve patient care;

 

• developing scientific leadership in the development and use of software tools based upon a fusion of medical and computer science, in alignment with the values of the NHS and proving the value for patients and shareholders from the effective use of these tools; and

 

• being a great place to work, develop and make a difference.

 

The Company has made excellent progress over the past year in each of these elements.

 

Double bottom line business model

Our policy is to be a for-profit company listed on the London Stock Exchange that creates value and delivers significant public impact from accelerating the discovery and development of new medicines and improving patient care through the ethical use of clinical artificial intelligence. This "double bottom line" approach requires us to create a coalition of support for our strategy between the NHS community, the investment community and the life sciences industry. I am delighted to report on the excellent progress that the Company has made in its first year as a public company in building this coalition and delivering strong results.

 

Our strategy recognises the importance of maintaining society's consent for the way in which patient data is used and for providing a fair return back to the NHS via equity ownership and a share of revenues. We regard delivering benefits to patients as our primary objective, and by achieving that objective we both maintain public confidence

in the use of patient data for the benefit of the wider community and provide an attractive financial return to the people who invest in our Company and enable us to do the work we do.

 

From inception, we have appreciated the vital importance of engaging with the public, the UK Government and Members of Parliament to discuss and help develop an understanding of the potential benefits of Clinical AI and the important safeguards that are needed to ensure that research is undertaken in a way that maintains public confidence and support. We have also engaged in making the case for the UK to create an attractive environment for data-driven health technology companies and their investors. Over the past year we have seen a growing appreciation, within Government, the media and the life sciences industry, of the value of real-world evidence gained from the analysis of anonymised patient data. The recent publication of the EY report on the value of NHS data concluded that an annual return to the UK Government of £10 billion per annum could be realised if a well-curated national database of linked primary and secondary care data were created. Research by YouGov, commissioned by Sensyne Health, concluded that Members of Parliament and the British public support the use of patient data for medical discovery, provided that appropriate controls are in place and that the NHS receives a fair financial return. During the year, working alongside JPMorgan, EY, Peel Hunt, Microsoft and Bayer, we have made good progress in developing policy advice and engaging with the UK Government and its advisers to enable the UK to develop an effective national patient data strategy.

 

This has involved participation in a number of consultation processes over the past year which have included the development of the UK Industrial Strategy in Life Sciences and led to the publication of the UK Government's

Code of Conduct for data-driven health and care technology, to which Sensyne Health was an early signatory. These discussions are taking place within the context of a growing public appreciation of the potential threat from the misuse of personal data, the potential impact of AI on society and a backlash towards global tech companies and the "surveillance capital" business model. In this context, Sensyne Health's "Capitalism 2.0" model is seen as a new and improved approach as people come to realise that the best AI is built on the best algorithms which in turn are trained on the best data. As that data resides with the NHS, a new model is required that is in alignment with the values of the NHS, one that makes patients its priority and provides a fair economic return to the NHS. The Sensyne Health model provides a unique point of difference with other commercial organisations and is a key strategic advantage for the Company.

 

Providing a docking station between the NHS and the life sciences industry

Sensyne Health operates at the interface of healthcare delivery and pharmaceutical R&D. Our scientists and clinicians work to develop new software tools that enable patients and clinicians to improve care and enable pharmaceutical scientists to discover and develop new medicines more efficiently. This work depends on the development of a fusion of medical and computer science capability. Our results demonstrate the significant benefits that our work is bringing to patients, the NHS and the UK economy.

 

Nevertheless, it is important to recognise the significant technical and organisational challenges that the Company faces as it works in partnership with NHS Trusts to curate, link and label the large and complex sets of anonymised patient data so that they are ready for analysis to derive the insights of potential value to clinicians and pharmaceutical scientists. Medical data is complex, and IT systems within NHS Trusts are imperfect and vary in capability and modernity across the NHS. This requires the Company to invest in the personnel and systems needed alongside the NHS Trusts and to develop the expertise and relationships required to partner effectively with these organisations.

 

Post-IPO, the signing of our first major pharmaceutical agreement with Bayer, to apply our Clinical AI to improve the development of new cardiovascular drugs, was a major milestone for the Company. It is focused on cardiovascular disease, the leading clinical priority for the NHS under the NHS Long Term Plan, and of major commercial importance to Bayer in its leading therapeutic area of focus.

 

Our business development pipeline is advancing strongly, and we anticipate signing additional agreements with pharmaceutical companies in a number of therapeutic areas in our second year as a public company.


Our recent announcement of an agreement with a US Fortune 200 company to become our sales and marketing partner in the United States completes the set of objectives set out at IPO and provides a strong foundation for future growth.

 

During the financial year we signed Strategic Research Agreements with five NHS Trusts and are on track to create a network of collaborations that creates a patient population of at least five million patients. Our work with these NHS Trusts, and users of our software tools, is already delivering significant improvements to patient care.  We have received strong interest from NHS Trusts across the UK in developing additional Strategic Research Agreements.

 

Developing scientific leadership

The work undertaken by our R&D team in collaboration with the University of Oxford has made good progress. Highlights have been the development of an algorithm for machine-learning-based clustering of real-world

data to identify patient sub-groups; the prediction of stroke using machine learning based on routinely collected clinical variables; the analysis of Phase II and Phase III clinical trials data and progress in our whole genome sequencing programme in asthma.

 

During the year we developed and launched two major software products: SEND 19.1, and GDm-Health 18.1. The feedback from patients and clinicians on the quality and effectiveness of these products has been excellent. Both of these products were invented and clinically tested by the University of Oxford and the Oxford University Hospitals NHS Foundation Trust working in partnership. They were then subsequently licensed to Sensyne Health, which completed their development and deployment in the wider NHS.

 

In June we announced the creation of LAB10x in partnership with Evotec, OUI and OSI. LAB10x will provide a bridge between Sensyne Health and the research being undertaken at the University of Oxford in the fields of clinical artificial intelligence and digital health.

 

With the establishment of the US Fortune 200 company relationship in the United States, we have now created an efficient pathway for digital health and Clinical AI innovations to transfer from the University of Oxford labs, via clinical validation in the NHS and then to scalable deployment across the UK and the United States.       

 

Being a great place to work, develop and make a difference

We operate in a highly competitive environment for talent where people with the skills and expertise that we need to deliver on our mission are in short supply and have many attractive options on where to work. Our social impact business model and our focus on patients are important factors in attracting and retaining the right people to work at Sensyne Health and in building a world-class team able to develop and scale the business. Key to this is being a great place to work and develop, embracing diversity, attracting talent internationally, and creating a fusion of world-class expertise in medical and computer science.

 

I am delighted by the quality of the team that we have built thus far and their commitment to our mission. I am confident that we will continue to attract the right people as we grow and as the Sensyne Health model and its impact becomes more widely appreciated.

 

Looking ahead

Since the year end the Company has continued to make good progress and is well placed to deliver on its strategy. 2019 was a pivotal year for the Company and 2020 will be just as important as we build on the progress we have made and further create value from our unique business model.

 

Sensyne Health has a world-class team of people who have worked extremely hard over the past year to deliver these results for patients and shareholders. I would like to thank them for their drive and professionalism. I should also like to express my gratitude to shareholders for their new and continued support.

 

Overall there has been excellent progress in our first year as a public company and I look forward to updating shareholders at our AGM. I am excited about Sensyne Health's future prospects. Our strategy is working, we are building a great team and our science is world class. These will be the foundations of our success in delivering value for patients and shareholders in future and in proving the utility of the Sensyne Health approach to business with social impact.

 

Experience over the past year has taught us that rather than trying to build a portfolio of small contracts with multiple pharmaceutical clients that would in time develop into larger contracts with those clients, we are better off focusing our efforts on building strategic relationships from the start with a small number of clients that develop a broader R&D partnership relationship with us, as we have achieved with Bayer. This has had the effect of reducing our revenue in FY19 and the revenue to be expected in the six months to 31 October 2019 and has increased the proportion of revenue we now have under contract for the second half of FY20 and for FY21 than was previously expected. Going forward we expect this strategy of focusing on fewer, larger contracts will generate the best return for shareholders.

 

Rt. Hon. Lord Drayson PhD FIET FREng FMedSci (Chief Executive Officer)

 

 

 

Chief Financial Officer's statement

Strong performance

 

The year has seen significant growth and development of Sensyne Health. We have entered into five new SRAs with the NHS under our double bottom line model and conducted a successful listing on the London Stock Exchange on 17 August 2018. Together, these enabled us to increase our investment in research and development, which led to the launch of our first products in SEND 19.1 and GDm-Health 18.1, and, subsequent to the year end, signing our first major pharmaceutical deal with Bayer. This has been delivered with our expenditure, cash used in operations and the cash balance at year end all within expectations and our planned objectives at IPO.

 

Restructuring

To enable our IPO, a restructuring was carried out of the Drayson Technologies Group, where the Sensyne Health Group was held prior to the IPO. Under IFRS, Sensyne Health Group is required to present the results of Drayson Technologies Group until the completion of the restructure, with any elements that are not related to Sensyne Health shown as a discontinued operation. This statement is therefore based on the continuing operations' results which represent the Sensyne Health business.

 

IPO

We raised £60 million in new funds through our IPO, having previously received £4.778 million in a private pre-IPO round. This provided net funds to the Group of £59.192 million after total transaction costs of £5.540 million

(of which £2.652 million is recognised in the Consolidated Statement of Comprehensive Income and £2.888 million is offset against Share Premium in the Statement of Financial Position).

 

Progress since IPO

With the funds raised, we have primarily invested these in R&D as we worked toward our goal of securing our first major pharmaceutical deal within two years of our IPO. We also commenced a lease on our new office at the Schrödinger Building at the Oxford Science Park. We continue to use adjusted results as our primary measure of financial performance as we believe they better reflect the use of funds.

 

Total R&D expenditure

Our expenditure rose to £9.512 million in the year (2018: £2.742 million), which primarily consists of employee and related costs.

 

Adjusted operating loss

Our adjusted operating loss was £11.513 million for the year (2018: £6.222 million). This was driven by our increased employee costs of £7.889m (2018: £3.531 million), with the majority of other expenditure being employee related items such as office expenditure, fees paid to recruiters and use of external contractors.

 

Our statutory operating loss of £19.010 million (2018: £7.253 million) includes non-cash items such as share-based payments of £0.772 million (2018: nil), and amortisation of the equity we have provided under our SRAs

of £2.901 million (2018: £0.930 million). It also includes exceptional items, of which £2.652 million (2018: £nil) relates to the IPO fees recognised in the Consolidated Statement of Comprehensive Income.

 

Revenue

Our revenue for the year was £0.136 million (2018: £0.081 million), reflecting the initial revenue recognisable under contracts from the release of SEND and GDm-Health in the later part of the year. Our first major pharmaceutical contract was signed after the year end; therefore no revenue is recognisable in the year to 30 April 2019.

 

Adjusted loss per share

The adjusted loss per share was £0.10 (2018: £0.06), an increase of 67%, principally reflecting the increase in R&D expenditure.

 

The statutory loss per share was £0.16 (2018: £0.08).

 

Adjusted cash used in operations

The cash used in the year was £9.779 million (2018: £5.372 million), which tracks the adjusted operating loss set out above, and our management of working capital creating a net inflow of £1.706m (2018: £0.850m).

 

Cash at year end

The trading above resulted in a cash balance at year end of £49.252 million (2018: £4.541 million).

 

Statement of Financial Position

Other than cash, the largest balance at year end is intangible assets of £18.068 million (2018: £4.714 million). The largest component is the value of the equity provided to the NHS under our SRAs, which is £16.208 million (2018: £4.160 million).

 

Outlook and going concern

Following the year end our first major pharmaceutical deal was signed with Bayer, which provides income of £5 million over a two-year period spanning FY20-22. We will continue to expand our R&D activity alongside delivering on this contract and securing new customers. With the funds available and the analysis carried out and reported in the viability statement, even in the absence of any new customer agreements, the Group has adequate resources to operate for a period of at least 24 months from the date of this report.

 

 

Lorimer Headley (Chief Financial Officer)

 

 

 

Consolidated Statement of Comprehensive Income

 

 

 

For the year ended 30 April 2019

 

 

 

 

 

 

Year ended

 

Year ended

 

 

30 April 2019

 

30 April 2018

 

Note

£000s

 

£000s

 

 

 

 

 

Revenue

 

136

 

81

 

 

 

 

 

Cost of sales

 

(172)

 

(192)

 

 

 

 

 

Gross loss

 

(36)

 

(111)

 

 

 

 

 

Research and development expenses

 

(8,283)

 

(2,260)

 

 

 

 

 

Sales and marketing expenses

 

(1,248)

 

(947)

 

 

 

 

 

Other general and administration expenses

 

(6,099)

 

(3,935)

 

 

 

 

 

Other general and administration expenses - Exceptional items

4

(3,344)

 

-  

 

 

 

 

 

Operating loss

 

(19,010)

 

(7,253)

 

 

 

 

 

Finance costs

 

(233)

 

 -

Finance income

 

256

 

  -

 

 

 

 

 

Loss on ordinary activities before taxation

 

(18,987)

 

(7,253)

 

 

 

 

 

Income tax credit on ordinary activities

 

28

 

180

 

 

 

 

 

Loss for the period from continuing operations

 

(18,959)

 

(7,073)

 

 

 

 

 

Loss for period from discontinued operations attributable to equity owners of the parent Company

 

(2,975)

 

(42,770)

 

 

 

 

 

 

 

 

 

 

Loss and total comprehensive loss for the period attributable to equity holders of the parent Company

 

(21,934)

 

(49,843)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating loss

 

 

 

 

Operating loss for the period from continuing operations

 

(19,010)

 

(7,253)

Exceptional items

4

3,344

 

      -  

Amortisation of intangible assets

5

3,106

 

953

Depreciation of property, plant and equipment

 

163

 

78

Depreciation of right of use asset

 

91

 

                   -  

Loss on disposal of property, plant and equipment

 

21

 

                   -  

Share-based payments

 

772

 

                   -  

 

 

 

 

 

Adjusted operating loss

 

(11,513)

 

(6,222)

 

 

 

 

 

 

 

 

 

 

Earnings per share for loss attributable to the owners of the parent Company during the year

 

 

 

 

Basic and diluted loss per share - continuing operations (£)

(0.16)

 

(0.08)

Basic and diluted loss per share - discontinued operations (£)

3

(0.03)

 

(0.45)

 

 

 

 

Consolidated Statement of Financial Position

 

 

 

 

As at 30 April 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 April 2019

 

30 April 2018

 

Note

£000s

 

£000s

Non-current assets

 

 

 

 

Intangible assets

5

               18,068

 

                 4,714

Property, plant and equipment

 

                    757

 

                     95

Right of use assets

 

                 1,724

 

                        -

Long term deposits

 

                        -

 

                    114

 

 

 

 

 

 

 

               20,549

 

                 4,923

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

                    784

 

                    236

Corporation tax credit for research and development

 

                    208

 

                    180

Cash and cash equivalents

 

               49,252

 

                 4,541

Assets held for distribution to owners

 

                        -

 

                 3,960

 

 

 

 

 

 

 

               50,244

 

                 8,917

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

               (3,368)

 

               (1,200)

Short term lease liability

 

                  (242)

 

                        -

Liabilities directly associated with assets held for distribution to owners

 

                        -

 

                  (425)

 

 

 

 

 

 

 

               (3,610)

 

               (1,625)

 

 

 

 

 

Net current assets

 

               46,634

 

                 7,292

 

 

 

 

 

Total assets less current liabilities

 

               67,183

 

               12,215

 

 

 

 

 

Non-current liabilities

 

 

 

 

Long term lease liability

 

               (1,769)

 

                        -

 

 

 

 

 

 

 

               (1,769)

 

                        -

 

 

 

 

 

Net assets

 

               65,414

 

               12,215

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

               12,857

 

             109,900

Share premium account

 

               59,485

 

                        -

Other reserves

 

                (86,930)

 

                (69,850)

Retained earnings/(accumulated losses)

 

               80,002

 

                (27,835)

 

 

 

 

 

 

 

 

 

 

Total equity

 

               65,414

 

               12,215

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

For the year ended 30 April 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

Year ended

 

 

30 April 2019

 

30 April 2018

 

Note

£000s

 

£000s

 

 

 

 

 

Cash used in operations

6

(13,123)

 

(5,372)

 

 

 

 

 

Finance income received

 

256

 

                      -  

Cash flows from continuing operating activities

 

(12,867)

 

(5,372)

Cash flows from discontinued operating activities

 

(2,068)

 

(2,644)

 

 

 

 

 

Total net cash outflow from operating activities

 

(14,935)

 

(8,016)

 

 

 

 

 

Investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(846)

 

(75)

Purchase of other intangible assets

5

(1,460)

 

(518)

 

 

 

 

 

Cash flows from continuing investing activities

 

(2,306)

 

(593)

Cash flows from discontinued investing activities

 

149

 

(325)

 

 

 

 

 

Net cash outflow from investing activities

 

(2,157)

 

(918)

 

 

 

 

 

Financing activities

 

 

 

 

Proceeds from the issue of share capital

 

64,778

 

10,660

Financing and share issue costs

 

(2,934)

 

(75)

Payments against lease liability

 

(20)

 

                      -  

 

 

 

 

 

Cash flows from continuing financing activities

 

61,824

 

10,585

Cash flows from discontinued financing activities

 

                      -  

 

                      -  

 

 

 

 

 

Net cash inflow from financing activities

 

61,824

 

10,585

 

 

 

 

 

Net increase in cash and cash equivalents

 

44,732

 

1,651

 

 

 

 

 

Cash and cash equivalents at the start of the period

 

4,541

 

3,036

Cash and cash equivalents from discontinued operations

 

                      -  

 

(146)

 Effect of foreign exchange rate change

 

(21)

 

                      -  

 

 

 

 

 

Cash and cash equivalents at the end of the period

 

49,252

 

4,541

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of changes in equity

For the year ended 30 April 2019

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

Share premium

Other reserves

Retained earnings/(accumulated losses)

Total

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

At 1 May 2017

95,957

-

(71,493)

22,008

46,472

Loss and total comprehensive loss for the year

-

-

-

(49,843)

(49,843)

Issue of share capital

13,943

-

1,643

-

15,586

At 30 April 2018

109,900

-

(69,850)

(27,835)

12,215

 

 

 

 

 

 

Loss and total comprehensive loss for the year

-

-

-

(21,934)

(21,934)

Exchange difference on translation of foreign operations

-

-

(21)

-

(21)

Issue of share capital

35,214

59,485

(17,831)

-

76,868

Capital reduction

(129,771)

-

-

129,771

-

Capital repayment

(2,486)

-

-

-

(2,486)

Transactions with owners: Share-based payment charge

-

-

772

-

772

At 30 April 2019

12,857

59,485

(86,930)

80,002

65,414

 

Notes to the Accounts

Year ended 30 April 2019

1.     Basis of Preparation

The financial information in this preliminary announcement has been extracted from the Group audited financial statements for the year ended 30 April 2019 and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The Group financial statements and this preliminary announcement were approved by the Board of Directors on 7 October 2019.

The auditors have reported on the Group's financial statements for the year ended 30 April 2019 under s495 of the Companies Act 2006. The Auditors' report is unqualified and does not contain a statement under section 498(2) or (3) of the Companies Act 2006. The Group's statutory financial statements for the year ended 30 April 2019 will be filed with the Registrar of Companies following the Company's Annual General Meeting.

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRSs') and IFRS Interpretations Committee ('IFRS IC') as adopted and endorsed by the European Union and have been prepared under the historical cost convention.

The same accounting policies, presentation and computation methods are followed in this preliminary announcement as in the preparation of the Group financial statements. The accounting policies have been applied consistently by the Group year-on-year, except as described below:

·         IFRS 15, 'Revenue from contracts with customers': This standard was adopted from the date of initial application - 1 May 2018. No significant impact on the Consolidated Financial Statements following adoption of the standard has been identified.

·         IFRS 9, 'Financial Instruments': The new financial instruments standard (IFRS 9), effective 1 January 2018, has been applied retrospectively. There has been no significant impact.

IFRS 16, 'Leases': This standard is mandatory for the accounting period beginning on 1 January 2019 but the Group early adopted it on 1 May 2018 under the simplified approach. The impact on the financial statements has been the recognition of a right of use (ROU) asset.

2.     Going concern

The Directors have prepared the Consolidated and Company Financial Statements on a going concern basis. In considering the going concern basis, the Directors have considered the principal risks and uncertainties set out in this note. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, support the conclusion that there is a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future and a period of not less than 12 months from the date of this report. Accordingly, the going concern basis has been adopted.

 

3.     Loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

 

 

Group

 

2019

2018

 

 

 

 

 

 

Weighted average number of shares in issue for the purpose of basic and adjusted loss per share

 

118,398,830

    94,285,800

 

 

 

 

 

 

Loss attributable to equity owners of the parent company- continuing operations (£'000)

 

      (18,959)

          (7,073)

 

 

 

 

 

 

Basic loss per share - continuing operations (£)

 

         (0.16)

            (0.08)

 

 

 

 

 

 

Adjusting items including exceptional items, amortisation and depreciation attributable to continuing operations (£'000)

 

7,446

            1,031

 

 

 

 

 

 

Adjusted loss attributable to equity owners of the parent company - continuing operations (£'000)

 

      (11,513)

          (6,222)

 

 

 

 

 

 

Adjusted Basic loss per share - continuing operations (£)

 

         (0.10)

            (0.06)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss attributable to the discontinued operations (£'000)

 

        (2,975)

         (42,770)

 

 

 

 

 

 

Basic loss per share - discontinued operations (£)

 

         (0.03)

            (0.45)

 

 

 

 

 

 

Adjusting items including exceptional items, amortisation and depreciation attributable to discontinued operations (£'000)

 

         2,500

          40,881

 

 

 

 

 

 

Adjusted loss attributable to the discontinued operations (£'000)

 

          (475)

          (1,889)

 

 

 

 

 

 

Adjusted Basic loss per share - discontinued operations (£)

 

                -

            (0.02)

 

 

 

 

 

 

 

 

 

 

 

As net losses were recorded in the years ended 30 April 2019 and 2018, the dilutive potential shares are anti-dilutive and therefore were excluded from the earnings per share calculation.

 

 

 

 

 

 

 

 

 

 

4.     Exceptional items

 

 

 

 

 

 

 

 

 

 

 

Group

 

 

 

 

 

Exceptional costs are analysed as follows:

 

 

 

 

 

 

2019

2018

 

 

 

 

£'000

£'000

 

 

 

Transaction costs

2,652

-

 

 

 

Consortium for national data strategy

692

-

 

 

 

 

 

 

 

 

 

 

3,344

-

 

 

 

                   

Transaction costs totalling £5,540,000 were incurred in respect to the application made to the London Stock Exchange for all the issued and to be issued Ordinary share capital to be admitted to trading on AIM of which £2,652,000 has been included within the operating loss to 30 April 2019 and £2,888,000 was offset against the Share Premium account in accordance with IAS 32 'Financial Instruments: Presentation.'

Consortium for national data strategy costs relate to professional fees incurred.

5.     Intangible assets

 

 

 

 

 

 

 

 

 

 

 

Group

Software licences

Other licences

Development costs

Patents and trademarks

Total

£'000

£'000

£'000

£'000

£'000

Cost

 

 

 

 

 

At 1 May 2017

           109

                  50

                    -

               -

           159

Additions

             11

                5,042

               453

             12

        5,518

 

 

 

 

 

 

At 30 April 2018

           120

                5,092

               453

             12

        5,677

Additions

               4

            15,090

             1,191

           175

       16,460

 

 

 

 

 

 

At 30 April 2019

           124

            20,182

             1,644

           187

       22,137

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

At 1 May 2017

               8

                    2

                    -

               -

             10

Amortisation for the year

             23

                930

                    -

               -

           953

 

 

 

 

 

 

At 30 April 2018

             31

                932

                    -

               -

           963

Amortisation for the year*

             26

                2,901

               139

             40

        3,106

At 30 April 2019

             57

                3,833

               139

             40

        4,069

 

 

 

 

 

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

At 1 May 2017

           101

                  48

                    -

               -

           149

At 30 April 2018

             89

                4,160

               453

             12

        4,714

 

 

 

 

 

 

At 30 April 2019

             67

            16,349

             1,505

           147

       18,068

 

 

 

 

 

 

 

* The amortisation charge for the year includes an impairment charge of £33,000 (2018: nil) in relation to previously recognised Patent and trademark costs no longer in use.

 

 

Other licences are rights to commercialise digital health products and capitalised Strategic Research Agreements (SRAs). The Group has capitalised 4 SRAs, with remaining useful economic lives of 9 years and 3 months; 4 years and 3 months; 4 years and 3 months; and 3 years and 1 month. The £15,000,000 addition in the year was acquired through the issue of shares. At the year end, the 4 SRAs have carrying amounts of £4,625,000, £4,250,000, £4,250,000 and £3,083,000 respectively.

 

 

The development costs are capitalised research and development costs in relation to our Digital Health Operating System to support our Digital Health Software products that meet the criteria for capitalisation set out in the accounting policies. Amortisation is charged from the month the product goes live.

 

 

Patents and trademarks are capitalised legal and application costs for various registrations that the business obtains to protect its intellectual property. Amortisation is charged once the application is granted and secured.

 

 

 

 

 

 

 

As at 30 April 2019 and 30 April 2018, the Group identified no evidence that indicated these intangible assets may be impaired, other than in relation to specific patents and trademarks as described above.

             

 

 

 

6.     Notes to the Cash Flow Statement

 

 

 

 

 

 

 

Group reconciliation of loss before income tax to cash used in operations

 

 

 

 

 

 

 

 

 

2019

2018

 

£'000

£'000

Loss before income tax

 

(18,987)

(7,253)

Adjustments for:

 

 

 

Finance costs

 

233

-

Finance income

 

(256)

-

Amortisation of intangible assets

 

3,106

953

Depreciation of property, plant and equipment

 

163

78

Depreciation of right of use assets

 

91

-

Loss on disposal of property, plant and equipment

 

21

-

Share based payments

 

772

-

 

 

 

 

Increase in trade and other receivables

 

(434)

(350)

Increase in trade and other payables

 

2,168

1,200

 

 

 

 

Cash used in operations

 

 (13,123)

 (5,372)

 

 

Adjusted cash used in operations is £9,779,000 (2018: £5,372,000), being cash used in operations less exceptional items including IPO costs.

 

 

 

7.     Subsequent events

 

 

 

 

 

 

 

 

 

 

 

 

 

On the 17 May 2019 the Group entered into a supply of services agreement with Oxford Computer Consultants Limited ('OCC'). The contract concerns the build of the Big Data Institute OUH Clinical Data Warehouse and fees for the services are capped at £384,000.

 

 

 

 

 

 

 

The Group entered into a joint arrangement on 24 June 2019 with Evotec SE, a global drug discovery and development company, the University of Oxford, Oxford University Innovation Ltd and Oxford Sciences Innovation plc aimed at accelerating the translation of research in the fields of Clinical AI and digital health at Oxford into breakthrough digital therapeutics and Clinical AI algorithms and to accelerate data-driven drug discovery and development (LAB10x). As part of this agreement, the Group has committed a total of £1,670,000 to the new fund over three years (paid as three annual instalments of £556,000).

 

On 31 July 2019, the Group entered into a contract and collaboration with Bayer AG that aims to accelerate the development of new treatments for cardiovascular disease using Clinical AI. The initial agreement will generate revenues for Sensyne Health of £5 million across the two-year collaboration. Sensyne Health's partner NHS trusts will receive a 4% share of all revenues generated under this collaboration.

 

On 4 October 2019, the Board appointed Dr Annalisa Jenkins MBBS FRCP, Independent Non-Executive Director, as Acting Non-Executive Chair of the Board whilst the Chairman, Charles Swingland, recovers from a recent period of ill health which may take a number of weeks.

 

 

 


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Sensyne Health Maiden Full Year Results - RNS