Sensyne Health Interim
Results
Oxford, UK; 21 January 2021:
Sensyne Health plc (LSE: SENS) (“Sensyne” or the “Company” or the
“Group”), the UK Clinical AI company, today announces its Interim
Results for the six months ended 31 October 2020.
Lord (Paul) Drayson, CEO of Sensyne
Health, commented:
“I am pleased to report that Sensyne has made
significant commercial progress over the past six months and has
achieved several key milestones in the development of its research
partnerships with NHS Trusts and in its work for leading
pharmaceutical companies applying Clinical AI to improve patient
care and accelerate life sciences research. I am particularly
pleased with the results we have been able to achieve during the
COVID-19 pandemic.
“In January we completed a £27.5 million
fund-raising, signed an important strategic collaboration with
Phesi Inc and in December launched our GDm-Health product in the
United States. We have made a strong start to the New Year and are
well placed to build on this momentum in 2021.”
OPERATING HIGHLIGHTS (INCLUDING POST
PERIOD END)
Growth of anonymised NHS patient dataset to 6.8m records to
achieve IPO target
- Four new strategic research agreements with Somerset,
Hampshire, Milton Keynes University and Royal Wolverhampton NHS
Trusts signed between October 2020 and January 2021 to provide
access to an aggregate of 2.95m records
- Data access agreement with NHS Greater Glasgow and Clyde NHS
Trust to provide access to 1.1m anonymised patient datasets in
three specific disease areas including cardiovascular disease
signed in October 2020
Discovery Sciences: New commercial agreements expand
relationships with pharmaceutical industry
- Collaboration agreement with Alexion to study the prevalence
and outcomes of patients in certain disease areas signed in May
2020
- Research collaboration signed with Bristol Myers Squibb in
October 2020
Software Products: Clinical algorithm platform and remote
monitoring products
- Launch of SENSE™ clinical algorithm platform to provide
real-time clinical decision and operational support launched in
September 2020
- First algorithm to provide personalised care for COVID-19
patients developed in partnership with the Chelsea and Westminster
Hospital NHS Foundation Trust
- Launch in the US of GDm-Health™ for diabetes in pregnancy in
December 2020
- Launch of MagnifEye™, a new software application using deep
machine learning AI to automate the accurate reading of lateral
flow diagnostic tests launched in January 2021
Planned scaling and industrialisation of data platforms
- Targeting an expansion of the NHS patient datasets to c.12.5m
records by the end of December 2022 to provide critical mass to
target post approval Phase 4 clinical trials
- Development of SENSIGHT™, a real-world-data analytics platform
for the support of R&D from drug discovery through to clinical
trials, post market approval and drug launch
- Rapid expansion of SENSE platform to expand offering to global
healthcare providers and payers
Phesi Strategic Collaboration
- Strategic collaboration with Phesi, Inc., a US-based specialist
clinical trials data company, commenced on 5 January 2021
(following the close of fundraising, see Financial highlights)
- Provides access to c.13.5m patient records from c.320,000
clinical trials completed since 2007 to create an enhanced offering
to pharmaceutical and biotechnology clients including improving the
design and efficiency of clinical programmes
- Initial five-year term for the collaboration with Sensyne
making a $10m equity investment into Phesi with these proceeds
contractually supporting collaboration activities and enhancing
their clinical trials data analytics offering
Strengthening of Board and Senior Management team
- Several key appointments to strengthen the senior management
team including Michael Macdonnell as Chief Operating Officer, Derek
Baird as President of North America, Laura Hillier as General
Counsel and Company Secretary and Dr Richard Pye as Chief
Investment Officer
- Mr Tony Bourne to become a Non-Executive Director commencing 31
January 2021
FINANCIAL HIGHLIGHTS
·Successfully completed a £27.5
million fundraise post period end in January 2021 that is expected
to enable the Group to industrialise its data analytics capability,
enter into an exclusive strategic collaboration with Phesi and
strengthen its balance sheet for future partnering discussions
·Total revenues of £2.3m for the six
months ended 31 October 2020 (HY20: £0.4m)
·Total research and development
expenditure of £7.7m, of which £0.3m was capitalised for the six
months ended 31 October 2020 (HY20: £5.4m, of which £0.2m was
capitalised)
·Adjusted operating loss from
continuing operations of £9.5m for the six months ended 31 October
2020 (HY20: £7.4m)
·Cash used in operations of £12.5m for
the six months ended 31 October 2020 (HY20: £7.7m)
·Operating loss of £13.6m for the six
months ended 31 October 2020 (HY20: £9.8m)
·Cash and cash equivalents of £18.6m
at 31 October 2020 (FY20: £31.7m)
Analyst and Investor briefing
Management will present the interim results for
analysts and investors today at 13.00 GMT. 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 |
|
Michael Norris, Interim Chief Financial Officer |
|
Dr Richard Pye, Chief Investment Officer |
|
Peel Hunt LLP (Nominated Adviser and Joint
Broker) |
+ 44 (0) 20 7418 8900 |
Dr Christopher Golden |
|
James Steel |
|
Oliver Jackson |
|
Liberum (Joint Broker) |
+ 44 (0) 20 3100 2000 |
Bidhi Bhoma |
|
Euan Brown |
|
Consilium Strategic Communications |
+44 (0) 20 3709 5700 |
Mary-Jane Elliott |
|
Sukaina Virji Davide Salvi |
|
sensynehealth@consilium-comms.com |
|
About Sensyne HealthSensyne
Health plc is a clinical AI company that works in partnership with
the NHS to improve patient care and accelerate the discovery and
development of new medicines. Sensyne Health is listed on the AIM
Market of the London Stock Exchange (SENS.L).
For more information, please visit:
www.sensynehealth.com
Operating Review
OverviewThe half year and post
period has been one of strong momentum across the business as
Sensyne delivered on key operational and corporate milestones while
expanding technology innovation and diversifying the therapeutic
areas we work in. This progress enabled completion in December 2020
of a £27.5 million fundraise that will enable us to implement our
plans for accelerating the growth and development of the business
through the industrialisation and scaling of our data platforms to
enhance our offering to the healthcare and life science industries.
We were pleased by the level of support from new and existing
institutional shareholders in the placing and our existing retail
shareholders in the over-subscribed open offer.
Sensyne operates two business units. Sensyne’s
Discovery Sciences division uses clinical AI to optimise clinical
trials and undertake research and development of new medicines
through the analysis of its growing real-world patient data. The
Software Products division focuses on providing clinical AI tools
and patient monitoring software to healthcare providers.
Underpinning these business units is our unique
partnership with the NHS whereby the Group has access on an
anonymised basis to a growing database of unique, longitudinal
patient records. Our ethical and transparent partnership model sees
the NHS Trust that partner with Sensyne receiving an equity stake
in the Group and a royalty on revenues that are generated from
research undertaken under the strategic research agreements
(“SRAs”). The progress made during the period shows this
business model is working and is demonstrating its potential
benefit to global health systems, clinicians and patients, along
with the life science industry.
The COVID-19 pandemic and associated disruption
to the provision of healthcare and undertaking of medical research
and development have accelerated the interest in and adoption of
digital medicine towards improvement in healthcare outcomes and
research and development.
Expansion of
anonymised patient records to achieve IPO target of 5
millionIn November 2020, Sensyne achieved its IPO target
of procuring an anonymised patient dataset of 5 million records.
This significant milestone was achieved with the signing of two new
SRAs with Milton Keynes University Hospital NHS Foundation Trust
and Somerset NHS Foundation Trust in October and November
respectively, plus in October entering into a data sharing
agreement with NHS Greater Glasgow and Clyde that provided access
to 1.1 million patient records across three therapeutic areas
including cardiovascular disease. Sensyne has since signed a
further two SRAs with Hampshire Hospitals NHS Foundation Trust in
November 2020 and Royal Wolverhampton Trust in January 2021 to
increase the size of our anonymised patents data sets to 6.8
million records. This is expected to further enable Sensyne to
apply clinical artificial intelligence research on anonymised
patient data to improve patient care in an ethical way and
accelerate research into new medicines.
The growing data set has a ‘multiplier effect’
both in driving additional pharmaceutical partners to enter into
commercial research agreements with Sensyne, and in attracting
further NHS Trusts and health systems to enter into additional
SRAs.
A key part of our industrialisation plans is the
further growth in our real-world anonymised patient data sets.
Sensyne is aiming to expand its NHS records to approximately 12.5
million unique patients by the end of December 2022. This enlarged
figure represents approximately 20% of the UK population and is
expected to provide the critical mass to expand its clinical tools
offering to the life science industry to target involvement in
post-approval Phase 4 clinical trials that can support
reimbursement strategies, along with enhancing research into rare
diseases. Sensyne is currently in discussions with multiple NHS
Trusts who have access to an aggregate of c.27 million individual
patient records.
Additionally, the Group is targeting the
procurement of specialist datasets totalling approximately 5
million records by the end of December 2022. These additional
records are intended to target both specific therapeutic areas
while providing geographical diversity to support the regulatory
requirements in different jurisdictions.
Discovery Sciences activity
Life Science PartnershipsWithin Sensyne’s
Discovery Science division, the growth of the anonymised patient
data will potentially enable Sensyne to cover a broader range of
research across different clinical areas, deliver powerful data
insights to speed up the development of novel approaches to new
medicines, and develop AI-powered clinical decision support tools
to improve patient care.
Sensyne has continued to expand its commercial
research partnerships with the pharmaceutical industry. In October
2020, we signed an agreement with Bristol Myers Squibb who became
the fourth major industry partner we are working with. Our existing
commercial research agreements with pharmaceutical partners either
continue to progress well or have finished. There are a broad range
of pharmaceutical partnership opportunities in the pipeline, with
active discussions taking place, particularly around the use of
Sensyne’s technology for clinical development and market access.
Additionally there has been strong early interest and engagement
with Phesi’s pharmaceutical clients on the joint offering and more
detailed conversations are progressing well.
Development of SENSIGHT™A key to being able to
accelerate our future growth by industrialising our data platform
is the development of SENSIGHT for the life science industry.
SENSIGHT is a real-world data analytics platform that can integrate
anonymised patient data sets across a large number of sources
including NHS Trusts to provide access to fully anonymised data to
support all stages of research and development from drug discovery
through to clinical trials and post market approval and drug
launch.
SENSIGHT will standardise the anonymised patient
data sets which Sensyne has access to, enabling the Group to
accelerate the generation of insights, enhance existing products
and offer new ones to the life science industry. For example,
SENSIGHT will be able to support the development of ‘synthetic
control arms’ in Phase 2 and Phase 3 clinical trials and drug
target identification across a range of therapeutic areas. A
crucial feature of SENSIGHT will be the significant increase in
speed of interrogating these data to generate outputs for
pharmaceutical clients.
Strategic collaboration with Phesi, Inc.In
January 2021, we entered into an exclusive strategic collaboration
with the US based private company Phesi, Inc. (“Phesi”) to provide
a combined offering of clinical trial data and real-world data in
synthetic clinical trial arms and clinical decision support tools.
This strategic collaboration will also enhance Sensyne’s strategy
of industrialising and scaling its SENSIGHT platform as Phesi has
done with its own platform.
The transaction with Phesi provides Sensyne with
the benefit of a different type of data set: anonymised global
clinical trials data and clinical investigator site information.
Phesi has curated a large, and highly structured clinical trial
database of approximately 13.5 million patient records from an
estimated 320,000 global clinical trials that have completed since
2007. Phesi has developed a clinical trial analytics platform,
including a clinical trial investigator site management tool called
ClinSite, which is used to improve the design and efficiency of any
clinical programme across all phases of development and multiple
therapeutic areas.
A combination of the development of the SENSIGHT
platform to develop new offerings for the pharmaceutical industry,
including synthetic clinical trial control arms and clinical
decision support tools and the collaboration with Phesi where joint
discussions are taking place with existing and new pharmaceutical
clients, is expected to drive a pipeline of future pharmaceutical
commercial research collaborations.
The initial term of the exclusive strategic
collaboration will be five years with an automatic renewal for
successive two-year periods unless terminated. Joint projects with
pharmaceutical company clients will be based on a revenue share
model. Sensyne has made a $10 million investment into Phesi and
received 10 per cent of Phesi’s fully-diluted share capital. The
investment into Phesi will be used to enhance the Phesi clinical
trials data analytics offering and activities that are connected to
the strategic collaboration. Lord Drayson will join the Phesi board
of directors.
Software Products activity
Sensyne’s Software Product division achieved a
number of milestones during the period under review as the Group
sought to support health systems’ response to the COVID-19 pandemic
that has resulted in increased demand for the adoption of digital
health solutions.
Launch of SENSE™ Platform In September 2020,
Sensyne announced the UK launch of ‘SENSE’, a clinical algorithm
engine that emerged as a new part of the Software Products
business, that was created in partnership with Microsoft to provide
a real-time decision support service. SENSE generates AI
algorithms, called SYNEs, for real-time decision support across
multiple medical conditions. Developed by analysing large,
anonymised patient datasets, SYNEs provide transparent, predictive
insights that improve patient care and operational productivity,
particularly in the context of healthcare workforce shortages.
The first SYNE developed was SYNE-COV™ that aims
to provide more personalised care for patients with COVID-19 by
integrating data into an existing real-time dashboard allowing
clinicians to augment their clinical decisions with near real-time
risk predictions pertaining to ICU admission, mechanical
ventilation and in-hospital mortality.
SYNE-COV was co-developed by Sensyne and
critical care clinicians at the Chelsea and Westminster Hospital
through the analysis of real-world data collected in their A&E
department. Sensyne is now, under MHRA directions, organising a
prospective Clinical Investigation to provide further clinical
evidence which will support CE marking of the device.
This is a timely example of the real-time
predictions that SENSE can provide to clinicians and operational
managers. Sensyne believes that the potential commercial
opportunity for SENSE is substantial. As part of the Group’s
industrialisation plans, it will be developing SENSE through the
rapid expansion of the platform, whilst simultaneously benefiting
from the increasing size of Sensyne’s real-world patient
datasets.
Remote monitoring productsThe pandemic has also
accentuated demand for Sensyne’s remote monitoring products.
Customers for GDm-Healthä (for diabetes in pregnancy) have grown
and, as at 31 December 2020, it is now in use in over 50 of the NHS
Trusts in England and has helped to care for over 16,000 babies
born to diabetic mothers since its launch in November 2018. In
December 2020, Sensyne launched GDm-Health in the US following an
agreement with Cognizant to support the sale of digital health
software products in this territory. Consequently, Sensyne is in a
number of discussions with health systems and insurance companies
introduced by Cognizant. Additionally, following the
appointment of Derek Baird as President North America in November
2020 and the establishment of a US office, business development for
GDm-Health in the US is being directly undertaken by Sensyne to
complement Cognizant’s
activity.
In response to demand from our clinical
partners, we also launched BPm-Health™ in May 2020, a remote
monitoring system in the UK for the management of blood pressure in
pregnancy, while DBm-Health™, a new software product for people
with or at risk of diabetes was launched in August 2020.
In addition, Sensyne contributed to the UK’s
pandemic response by launching CVm-Healthä a remote monitoring
system for COVID-19. This technology will support remote
symptom data collection and analytics for a University of Oxford
Phase 2 clinical trial in care homes of adalimumab to prevent
respiratory failure due to COVID-19. The app is also being used by
the University of Oxford in its FACTS clinical study evaluating the
feasibility and acceptability of new point-of-care tests for
regular asymptomatic COVID-19 testing amongst the student
body.
Corporate activity The senior
management team was strengthened during the period following a
number of new appointments that bring additional experience and
expertise. These included the appointment of Michael Macdonnell,
former director of Global Development at Google Health, as Chief
Operating Officer who brings NHS and global technology company
experience; Laura Hillier as General Counsel and Company Secretary
who brings significant experience of pharma and corporate
governance; Derek Baird as President of North America to lead the
expansion of Sensyne into the United States; and Richard Pye as
Chief Investment Officer with corporate finance and investor
relations experience in the UK and US.
In December it was announced that Tony Bourne
will join the Board as Independent Non-Executive Director and Chair
of the Remuneration Committee from 31 January 2021.
Impact of COVID-19We continue
to monitor and respond to the rapidly changing global situation
caused by the COVID-19 pandemic, including guidance and policy
changes implemented by governments around the world. We have
adapted our business practices to meet the new restrictions and the
entire workforce continues to work remotely, but digitally
connected which has increased productivity and presented
recruitment opportunities. Our senior management team continue to
assess the impact of the pandemic on present and future operations.
The pandemic is accelerating the interest in and
adoption of digital medicine in both the healthcare and
pharmaceutical sectors to improve healthcare outcomes and support
research and development.
Sensyne has the opportunity to (i) place itself
at the forefront of enabling clinicians and other healthcare
practitioners to make better decisions with the help of AI-powered
tools; and (ii) deploy Clinical AI to discover new medicines, to
inform the planning and running of clinical trials and to identify
substantial cost and efficiency savings to the wider pharmaceutical
industry, while improving the likelihood of new medicines reaching
patients.
Summary and Outlook Sensyne has
made significant progress during this period as it seeks to
capitalise on its position at the heart of a fundamental shift in
the healthcare and life science sectors towards greater use of big
data analytics and clinical AI, a shift that has been accelerated
by the COVID-19 pandemic. This progress included the significant
increase in the size of the anonymised patient database, the number
of NHS Trusts working with Sensyne and the global pharmaceutical
companies approaching Sensyne to validate the Group’s unique
partnership model in clinical AI.
Sensyne plans to build on this progress by
industrialising and scaling its datasets to power the SENSIGHT and
SENSE platforms, as well as beginning to exploit the benefit of the
strategic collaboration with Phesi, as Sensyne seeks to capitalise
on the expanding number and range of commercial opportunities ahead
of it. We look forward to reporting on our future progress.
Financial review
Revenue
Group revenue for the six months ended 31
October 2020 increased by £1.9m to £2.3m (HY20: £0.4m). The main
growth factors are our clinical development projects in the
Discovery Sciences segment such as with Bayer, Alexion and Roche.
The strong performance of Discovery Sciences represents a change to
the expected revenue mix at the beginning of the current financial
year and is due to the delays the pandemic has caused to the launch
of software products in the US and the Company’s strategic decision
to make its software free to use by the NHS for a 12-month period.
The Group’s ongoing contracts and business development activities
provide confidence in meeting consensus revenue estimates for
FY21.
Gross profit
Gross profit for the six months ended 31 October
2020 has increased by £1.1m to £1.3m (HY20: £0.2m) due to the
increase in revenues. There was a slight decline in the gross
margin to 57.5% (HY20: 62.2%). This is driven by the mix of
clinical development services which yield varying margins on fixed
fee contracts.
Operating expenses
Operating expenses for the six months ended 31
October 2020 increased by £4.8m to £14.9m (HY20: £10.1m).
Total research and development expenditure
increased by £2.2m to £7.7m, of which £0.3m has been capitalised
(HY20: £5.4m, of which £0.2m has been capitalised). This increase
was primarily due to the continued investment in new R&D
activities alongside ongoing development investment in live
products, the operational cost of offering GDm-Heath and BPm-Health
free of charge for one year to support the NHS during the COVID-19
pandemic as well an investment to improve NHS IT infrastructure to
NHS Trust as part of on our ongoing commitment under SRAs.
Sales and marketing expenditure decreased by
£0.1m to £0.6m (HY20: £0.7m). The decrease relates primarily to the
impact of COVID-19 on attendance at national and international
healthcare events and conferences.
Other general and administrative expenditure
increased by £1.7m to £5.9m (HY20: £4.2m). The increase is driven
by the continued investment to support the growth and development
of the Group. This has included the strengthening of the senior
management team with a number of key appointments being made during
the period, alongside the continued use of interim contractors to
support the execution of the Group’s strategy across the
business.
Exceptional items of £1.0m (HY20: £Nil) relate
to professional fees and final payments incurred in the settlement
of the legal case with the former CFO.
Adjusted operating loss
Adjusted operating loss is stated before
interest, taxation, depreciation, amortisation, share-based
payments, share of joint ventures losses and exceptional items.
Adjusted operating loss for the period increased
by £2.2m to £9.5m (HY20: £7.4m) driven primarily by the increased
costs described above.
Operating loss
The reported operating loss for the period was
£13.6m (HY20: £9.8m).
The depreciation charge, including right of use
assets, of £0.4m (HY20: £0.2m) increased by £0.2m, driven
principally by the additional depreciation of £0.2m (HY20: £Nil)
following the completion of the fit out and installation of IT
infrastructure of our data centre at our Oxford Science Park leased
premises in December 2019.
The amortisation of intangible assets of £2.2m
(HY20: £2.0m) includes £1.8m (HY20: £1.8m) relating to acquired
intangible assets, primarily the strategic research agreements, and
£0.4m (HY20: £0.2m) relating to other intangible assets, primarily
acquired and internally developed software.
Share based payment expenses for the period
increased to £0.4m (HY20: £0.2m) because of the surrendering of
options under our Group Share Option Plan 2018 (‘CSOP 2018’) which
led to an acceleration of the remaining share option value in July
2020. A new Group Share Option Plan 2020 has since been introduced
to all staff, except for Directors and Senior Management, which
includes new terms and conditions.
Net finance costs
Finance costs for the period of £0.2m (HY20:
£0.2m) relates to interest in respect of our Oxford Science Park
lease liabilities. Finance income of £0.01m (HY20: £0.2m) relates
to bank interest received over its cash balances. Net finance costs
have increased by £0.2m (HY20: £Nil) due to the decrease in its
cash balances and the Bank of England’s cut in the base rates.
Cash flow
The Group had net cash outflows of £13.1m for
the six months ended 31 October 2020 (HY20: £8.8m). The most
significant movements relate to net cash flows used in operating
activities of £12.4m (HY20: £7.5m) driven by the operating loss and
a net working capital outflow of £1.9m (HY20: £0.3m).
Cash flows used in investing activities has
decreased to £0.4m (HY20: £1.2m). Capital expenditure related
primarily to the fit-out costs to provision our growing staff
headcount with IT and office equipment to ensure safe remote
working following a permanent change in our working arrangements in
response to the COVID-19 pandemic. Software products invested a
further £0.3m (HY20: £0.2m) in capitalised software development
costs. Cash used in investment in Lab10x joint venture has
decreased to £Nil (HY20: £0.6m) as the participants have jointly
agreed to defer future payments until further notice.
Cash flows used in financing activities which
relate to payments against lease liabilities has increased to £0.2m
(HY20: £0.1) primarily due to the rent-free period ending in the
previous year.
Financial positionAs at 31
October 2020, cash and cash equivalents held were £18.6 million (30
April 2020: £31.7 million).
On 5 January 2021, post the period under review,
total proceeds of £27.5 million were raised (before expenses)
through a placing, subscription and open offer (the “Transaction”)
of new ordinary shares. Of these gross proceeds, approximately
£2.0m were incurred in transaction-related fees and an investment
of $10m (£7.7m including fees) was provided in relation to the
equity acquisition and five-year strategic collaboration with
Phesi, Inc that became effective on this date.
Share capital On 5 January
2021, post the period under review, the Group issued 30,513,341 new
£0.10 ordinary shares at a price of £0.90 per ordinary share as
part of the Transaction. Following completion of the Transaction,
the number of ordinary shares in issue was 159,084,855.
Independent review report to Sensyne Health
Plc
IntroductionWe have reviewed
the condensed set of financial statements in the half-yearly
financial report of Sensyne Health Plc (the ‘company’) for the six
months ended 31 October 2020 which comprises the condensed
consolidated interim statement of comprehensive income and
consolidated interim statement of financial position. We have read
the other information contained in the half-yearly financial
report, and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilitiesThe
half-yearly financial report is the responsibility of, and has been
approved by, the directors.
As disclosed in the annual financial statements of the group are
prepared in accordance with International Financial Reporting
Standards as adopted by the European Union. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the
European Union.
Our responsibilityOur
responsibility is to express a conclusion to the company on the
condensed set of financial statements in the half-yearly financial
report based on our review.
Scope of reviewWe conducted our
review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity'. A
review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK) and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
The impact of macro-economic
uncertainties on our review Our review of the financial
statements requires us to obtain an understanding of all relevant
uncertainties, including those arising as a consequence of the
effects of macro-economic uncertainties such as COVID-19 and
Brexit. All reviews assess and challenge the reasonableness of
estimates made by the directors and the related disclosures and the
appropriateness of the going concern basis of preparation of the
financial statements. All of these depend on assessments of the
future economic environment and the company’s future prospects and
performance.
COVID-19 and Brexit are amongst the most significant economic
events currently faced by the UK, and at the date of this report
their effects are subject to unprecedented levels of uncertainty,
with the full range of possible outcomes and their impacts unknown.
We applied a standardised firm-wide approach in response to these
uncertainties when assessing the company’s future prospects and
performance. However, no review should be expected to predict the
unknowable factors or all possible future implications for a
company associated with these particular events.
Conclusions relating to going
concern We have nothing to report in respect of the
following matters in relation to which the ISAs (UK) require us to
report to you where:
- the directors' use of the going concern basis of accounting in
the preparation of the financial statements is not appropriate;
or
- the directors have not disclosed in the financial statements
any identified material uncertainties that may cast significant
doubt about the company's ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months
from the date when the financial statements are authorised for
issue.
In our evaluation of the directors' conclusions, we considered
the risks associated with the company's business, including effects
arising from macro-economic uncertainties such as COVID and Brexit,
and analysed how those risks might affect the company's financial
resources or ability to continue operations over the period of at
least twelve months from the date when the financial statements are
authorised for issue. In accordance with the above, we have nothing
to report in these respects.
However, as we cannot predict all future events or conditions
and as subsequent events may result in outcomes that are
inconsistent with judgements that were reasonable at the time they
were made, the absence of reference to a material uncertainty in
this review report is not a guarantee that the company will
continue in operation.
ConclusionBased on our review,
nothing has come to our attention that causes us to believe that
the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 October 2020 is not
prepared, in all material respects, in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
Use of our reportThis report is
made solely to the company, as a body, in accordance with
International Standard on Review Engagements (UK and Ireland) 2410,
'Review of Interim Financial Information performed by the
Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we
are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company as
a body, for our review work, for this report, or for the conclusion
we have formed.
Grant Thornton UK LLPStatutory Auditor, Chartered
AccountantsReading20 January 2021
Condensed Consolidated Interim Statement of Comprehensive IncomeFor
the six-month period ended 31 October 2020 |
|
|
Note |
Six months to |
Six months to |
Year to |
31-Oct-20 |
31-Oct-19 |
30-Apr-20 |
Unaudited |
Unaudited |
Audited |
|
|
£’000 |
£’000 |
£’000 |
Revenue |
3 |
2,318 |
392 |
2,050 |
Cost of sales |
|
(985) |
(148) |
(893) |
Gross profit |
|
1,333 |
244 |
1,157 |
Research and development expenses |
|
(7,390) |
(5,225) |
(11,078) |
Sales and marketing expenses |
|
(619) |
(668) |
(1,364) |
Other general and administration expenses |
|
(5,936) |
(4,188) |
(9,754) |
Other general and administration expenses – exceptional items |
4 |
(977) |
- |
(1,410) |
Operating loss |
|
(13,589) |
(9,837) |
(22,449) |
Finance costs |
|
(173) |
(171) |
(347) |
Finance income |
|
10 |
154 |
254 |
Share of loss of joint ventures accounted for using the equity
method |
|
(57) |
(40) |
(89) |
Loss before taxation |
|
(13,809) |
(9,894) |
(22,631) |
Income tax credit |
|
- |
- |
792 |
Loss and total comprehensive loss for the period
attributable to equity owners of the parent Company |
|
(13,809) |
(9,894) |
(21,839) |
|
|
|
|
|
Adjusted operating loss |
|
|
|
|
Operating
loss |
|
(13,589) |
(9,837) |
(22,449) |
Exceptional items |
|
977 |
- |
1,410 |
Amortisation of
intangible assets |
|
2,248 |
2,009 |
4,214 |
Depreciation of
property, plant and equipment |
|
341 |
153 |
452 |
Depreciation of right of
use assets |
|
66 |
66 |
132 |
Share-based
payments |
|
425 |
245 |
235 |
Adjusted
operating loss |
|
(9,532) |
(7,364) |
(16,006) |
|
|
|
|
|
Loss per share attributable to owners of the parent
Company during the period (expressed in £ per share) |
|
|
|
|
Basic and diluted loss per share from continuing operations |
2 |
(0.11) |
(0.08) |
(0.17) |
The notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
Condensed Consolidated Interim Statement of Financial PositionAs at
31 October 2020 |
|
Note |
As at |
As at |
As at |
31-Oct-20 |
31-Oct-19 |
30-Apr-20 |
Unaudited |
Unaudited |
Audited |
|
|
£’000 |
£’000 |
£’000 |
Non-current assets |
|
|
|
|
Intangible assets |
|
12,952 |
16,307 |
14,901 |
Property, plant and equipment |
|
1,222 |
999 |
1,421 |
Right of use assets |
|
1,550 |
1,683 |
1,618 |
Investment in joint venture |
|
410 |
515 |
467 |
|
|
16,134 |
19,504 |
18,407 |
Current assets |
|
|
|
|
Trade and other receivables |
|
3,425 |
1,211 |
3,049 |
Corporation tax credit for research and development |
|
- |
208 |
820 |
Cash and cash equivalents |
|
18,565 |
40,488 |
31,657 |
|
|
21,990 |
41,907 |
35,526 |
Current liabilities |
|
|
|
|
Trade and other payables |
|
(5,542) |
(3,458) |
(7,535) |
Provisions |
|
- |
- |
(397) |
Short-term lease liability |
|
(392) |
(392) |
(392) |
|
|
(5,934) |
(3,850) |
(8,324) |
Net current assets |
|
16,056 |
38,057 |
27,202 |
Total assets less current liabilities |
|
32,190 |
57,561 |
45,609 |
Non-current liabilities |
|
|
|
|
Long-term lease liability |
|
(1,688) |
(1,772) |
(1,717) |
Provisions |
|
(33) |
- |
(30) |
|
|
(1,721) |
(1,772) |
(1,747) |
Net assets |
|
30,469 |
55,789 |
43,862 |
Equity |
|
|
|
|
Share capital |
5 |
12,857 |
12,857 |
12,857 |
Share premium account |
5 |
59,485 |
59,485 |
59,485 |
Other reserves |
|
(86,227) |
(86,661) |
(86,643) |
Retained earnings |
|
44,354 |
70,108 |
58,163 |
Total equity |
|
30,469 |
55,789 |
43,862 |
The notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
Condensed Consolidated Interim Statement of Changes in EquityFor
the six-month period ended 31 October 2020 |
|
Note |
Share capital |
Share premium |
Other reserves |
Retained earnings |
Total |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
At 30 April 2019 (Audited) |
|
12,857 |
59,485 |
(86,930) |
80,002 |
65,414 |
Loss and total comprehensive loss for the period |
|
- |
- |
- |
(9,894) |
(9,894) |
Exchange difference on translation of foreign operations |
|
- |
- |
24 |
- |
24 |
Share-based payment charge |
|
- |
- |
245 |
- |
245 |
At 31 October 2019 (Unaudited) |
|
12,857 |
59,485 |
(86,661) |
70,108 |
55,789 |
Loss and total comprehensive loss for the period |
|
- |
- |
- |
(11,945) |
(11,945) |
Exchange difference on translation of foreign operations |
|
- |
- |
28 |
- |
28 |
Share-based payment charge |
|
- |
- |
(10) |
- |
(10) |
At 30 April 2020 (Audited) |
|
12,857 |
59,485 |
(86,643) |
58,163 |
43,862 |
Loss and total comprehensive loss for the period |
|
- |
- |
- |
(13,809) |
(13,809) |
Exchange difference on translation of foreign operations |
|
- |
- |
(9) |
- |
(9) |
Share-based payment charge |
|
- |
- |
425 |
- |
425 |
At 31 October 2020 (Unaudited) |
5 |
12,857 |
59,485 |
(86,227) |
44,354 |
30,469 |
Share premium represents the excess of the issue price over the
par value on shares issued less transaction costs arising on the
issue.
Other reserves include share option reserve, translation reserve
and capital redemption reserve.
The notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
Condensed Consolidated Interim Statement of Cash FlowsFor the
six-month period ended 31 October 2020 |
|
|
Six months to |
Six months to |
Year to |
|
31-Oct-20 |
31-Oct-19 |
30-Apr-20 |
|
Unaudited |
Unaudited |
Audited |
|
|
£’000 |
£’000 |
£’000 |
|
Loss before taxation |
(13,809) |
(9,894) |
(22,631) |
|
Finance costs |
173 |
171 |
347 |
|
Finance income |
(10) |
(154) |
(254) |
|
|
(13,646) |
(9,877) |
(22,538) |
|
Amortisation of intangible assets |
2,248 |
2,009 |
4,214 |
|
Depreciation of property, plant and equipment |
341 |
153 |
452 |
|
Depreciation of right of use assets |
66 |
66 |
132 |
|
Share of loss of joint ventures accounted for using the equity
method |
57 |
40 |
89 |
|
Share-based payments |
425 |
245 |
235 |
|
Operating loss before working capital
movements |
(10,509) |
(7,364) |
(17,416) |
|
(Increase)/Decrease in trade and other receivables |
444 |
(426) |
(2,085) |
|
Increase/(Decrease) in trade and other payables |
(1,993) |
90 |
4,167 |
|
Increase/(Decrease) in provisions |
(394) |
- |
427 |
|
Cash used in operations |
(12,452) |
(7,700) |
(14,907) |
|
Finance income received |
10 |
154 |
254 |
|
Total net cash outflow used in operating
activities |
(12,442) |
(7,546) |
(14,653) |
|
Investing activities |
|
|
|
|
Purchase of property, plant and equipment |
(142) |
(395) |
(1,116) |
|
Purchase of other intangible assets |
(299) |
(248) |
(1,047) |
|
Investment in joint venture |
- |
(555) |
(556) |
|
Cash flows used in investing activities |
(441) |
(1,198) |
(2,719) |
|
Financing activities |
|
|
|
|
Payments against lease liability |
(202) |
(53) |
(267) |
|
Net cash outflow from financing activities |
(202) |
(53) |
(267) |
|
Net decrease in cash and cash equivalents |
(13,085) |
(8,797) |
(17,639) |
|
Cash and cash equivalents at the start of the period |
31,657 |
49,252 |
49,252 |
|
Effect of foreign exchange rate change |
(7) |
33 |
44 |
|
Cash and cash equivalents at the end of the
period |
18,565 |
40,488 |
31,657 |
|
The notes are an integral part of these Condensed Consolidated
Interim Financial Statements.
Notes to the Condensed Consolidated Interim Financial
Information For the six-month period ended 31 October 2020
1. Summary
of significant accounting policies
General information
Sensyne Health plc (the “Company”) is a public
company limited by shares, registered in England and Wales,
incorporated and domiciled in the United Kingdom, whose shares are
publicly traded on the AIM segment of the London Stock Exchange.
The address of its registered office is Schrödinger Building,
Heatley Road, Oxford Science Park, Oxford, England OX4 4GE.
The Company and its subsidiary undertakings are
referred to in this report as the Group.
The Condensed Consolidated Interim Financial
Statements were approved for issue on 20 January 2021.
The financial information for the six months
ended 31 October 2020 is unaudited and does not comprise statutory
accounts within the meaning of section 434 of the Companies Act
2006, but has been reviewed in accordance with ISRE 2410 by the
Group’s statutory auditors. The Group's statutory financial
statements for the year ended 30 April 2020 have been filed with
the Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain statements under
Section 498 of the Companies Act 2006.
Basis of preparation
The Condensed Consolidated Interim Financial
Statements for the six months ended 31 October 2020 included in
this Interim Report have been prepared in accordance with IAS 34
“Interim Financial Reporting” (IAS 34) as adopted by the European
Union and have been prepared on a going concern basis as described
further below.
Going concern
The Board has prepared the Condensed
Consolidated Interim Financial Information on a going concern
basis, which is considered to be appropriate.
In January 2021, the Company completed a
Placing, Open Offer and Subscription equity fund raise that led to
the receipt of net proceeds of £25.5m after transaction-related
fees of approximately £2m.
In assessing the appropriateness of the going
concern assumption, the Board has considered the cash requirements
of the Group and Company, taking into account but not limited to,
the unprecedented circumstances caused by the COVID-19 pandemic and
the UK’s departure from the EU on the future viability of the Group
for the 15 month period ended 30 April 2022.
The Board have prepared and reviewed detailed
financial forecasts (as part of the longer term plan), that have
been sensitised, to reflect the plausible downside scenarios caused
by the COVID-19 pandemic and UK’s exit from the EU as well as the
risks and uncertainties associated with the Group as set out in the
Group’s latest Annual Report. These forecasts demonstrate that the
Group and Company has sufficient cash runway to meets its
obligations as they fall due for a period of at least 12 months
from the date of signing this interim report.
As such, the Board are satisfied that the Group
and Company has adequate resources to continue to operate for the
foreseeable future. For this reason they continue to adopt the
going concern basis for preparing the interim financial
statements.
Accounting policies
The accounting policies and methods of
computation followed in these Condensed Consolidated Interim
Financial Statements are the same as applied in the Group's latest
annual audited Financial Statements.
Critical accounting judgements and
sources of estimation uncertainty
The preparation of Interim Financial Statements
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results might differ from these estimates.
In preparing these condensed interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
Consolidated Financial Statements for the year ended 30 April 2020
apart from the additional policy outlined below:
Critical judgement – share based
paymentsIn the period, some employees surrendered their
existing share options and were then subsequently granted new
options under revised terms and conditions.
The directors of the Group assessed whether or
not these events constituted a modification of the existing scheme
or a cancellation and re-grant of options under a new scheme. In
making their judgement, the directors considered the substance of
the underlying transaction and relevant terms and conditions of
each scheme. After assessment, the directors concluded that the
surrendering of options and subsequent grant of options was a
cancellation and a new grant. Therefore under IFRS 2 Share Based
Payments the remaining total fair value of the surrendered options
was expensed immediately, reflecting an acceleration of the vesting
period for those options, and a separate charge accounted for to
reflect a new scheme.
2. Loss per
share
Basic loss per share is calculated by dividing the loss
attributable to equity owners of the Company by the weighted
average number of Ordinary Shares in issue during the period.
|
Six months to |
Six months
to |
Year to |
31-Oct-20 |
31-Oct-19 |
30-Apr-20 |
|
Unaudited |
Unaudited |
Audited |
Weighted average number of shares in issue for the purpose
of basic and adjusted loss per share |
128,571,514 |
128,571,514 |
128,571,514 |
Loss attributable to equity owners of the parent Company
(£000) |
(13,809) |
(9,894) |
(21,839) |
Basic loss per share (£) |
(0.11) |
(0.08) |
(0.17) |
Adjusting items including exceptional items, amortisation and
depreciation (£’000) |
4,057 |
2,530 |
5,833 |
Adjusted loss attributable to equity owners of the parent Company
(£’000) |
(9,532) |
(7,364) |
(16,006) |
Adjusted basic loss per share (£) |
(0.07) |
(0.06) |
(0.12) |
|
|
|
|
As net losses were recorded in the six months
ended 31 October 2020 and in each of the comparative periods, the
dilutive potential shares are anti-dilutive and therefore were
excluded from the loss per share calculation.
3. Segmental
operations
In accordance with IFRS 8, the Group’s operating
segments are based on the information reviewed by the Board of
Directors, which represents the chief operating decision maker who
is responsible for allocating resources and assessing performance.
The business comprises two operating segments:
- Software Products - product licensing revenue earned from
licences granted under licensing agreements, including upfront
payments.
- Discovery Sciences - consultant services revenue earned through
contracts with pharmaceutical companies to develop Clinical AI
technology.
Costs shared between the segments are not
allocated to individual segments for decision making purposes.
These are disclosed under the column headed “Corporate &
Support”.
Six months ended 31 October
2020
|
Software Products |
Discovery Sciences |
Corporate & Support |
Total |
|
£’000 |
£’000 |
£’000 |
£’000 |
Revenue |
105 |
2,213 |
- |
2,318 |
Cost of sales |
(42) |
(943) |
- |
(985) |
Gross profit |
63 |
1,270 |
- |
1,333 |
Research and development expenses |
(3,486) |
(3,551) |
(353) |
(7,390) |
Sales and marketing expenses |
(233) |
(188) |
(198) |
(619) |
Other general and administration expenses |
(791) |
(207) |
(4,938) |
(5,936) |
Other general and administration expenses – exceptional items |
- |
- |
(977) |
(977) |
Operating loss |
(4,447) |
(2,676) |
(6,466) |
(13,589) |
Finance costs |
- |
(53) |
(120) |
(173) |
Finance income |
- |
- |
10 |
10 |
Share of loss of joint ventures accounted for using the equity
method |
(57) |
- |
- |
(57) |
Loss before taxation |
(4,504) |
(2,729) |
(6,576) |
(13,809) |
Income tax credit |
- |
- |
- |
- |
Loss and total comprehensive loss for the period
attributable to equity owners of the parent Company |
(4,504) |
(2,729) |
(6,576) |
(13,809) |
|
|
|
|
|
Adjusted operating loss |
|
|
|
|
Operating
loss |
(4,447) |
(2,676) |
(6,466) |
(13,589) |
Exceptional items |
- |
- |
977 |
977 |
Amortisation of
intangible assets |
498 |
1,750 |
- |
2,248 |
Depreciation of
property, plant and equipment |
- |
- |
341 |
341 |
Depreciation of right of
use assets |
- |
20 |
46 |
66 |
Share-based
payments |
209 |
(69) |
285 |
425 |
Adjusted operating loss |
(3,740) |
(975) |
(4,817) |
(9,532) |
Revenue is analysed geographically by region as
follows:
|
Six months to |
Six months to |
Year to |
31-Oct-20 |
31-Oct-19 |
30-Apr-20 |
Unaudited |
Unaudited |
Audited |
|
£’000 |
£’000 |
£’000 |
United Kingdom |
105 |
392 |
387 |
Europe |
2,051 |
- |
1,606 |
United States |
57 |
- |
57 |
|
2,213 |
392 |
2,050 |
|
|
|
|
The Group has applied the European Securities
and Markets Authority (ESMA) “Guidelines on Alternative Performance
Measures” in these annual results. In the context of these results,
an alternative performance measure (APM) is a financial measure of
historical or future financial performance, position or cash flows
of the Group which is not a measure defined or specified in
IFRS.
Six months ended 31 October
2019
|
Software Products |
Discovery Sciences |
Corporate & Support |
Total |
|
£’000 |
£’000 |
£’000 |
£’000 |
Revenue |
250 |
142 |
- |
392 |
Cost of sales |
(89) |
(59) |
- |
(148) |
Gross profit |
161 |
83 |
- |
244 |
Research and development expenses |
(2,188) |
(2,623) |
(414) |
(5,225) |
Sales and marketing expenses |
(210) |
(390) |
(68) |
(668) |
Other general and administration expenses |
(267) |
(58) |
(3,863) |
(4,188) |
Other general and administration expenses – exceptional items |
- |
- |
- |
- |
Operating loss |
(2,504) |
(2,988) |
(4,345) |
(9,837) |
Finance costs |
- |
(54) |
(117) |
(171) |
Finance income |
- |
- |
154 |
154 |
Share of loss of joint ventures accounted for using the equity
method |
(40) |
- |
- |
(40) |
Loss before taxation |
(2,544) |
(3,042) |
(4,308) |
(9,894) |
Income tax credit |
- |
- |
- |
- |
Loss and total comprehensive loss for the period
attributable to equity owners of the parent Company |
(2,544) |
(3,042) |
(4,308) |
(9,894) |
|
|
|
|
|
Adjusted operating loss |
|
|
|
|
Operating
loss |
(2,504) |
(2,988) |
(4,345) |
(9,837) |
Exceptional items |
- |
- |
- |
- |
Amortisation of
intangible assets |
259 |
1,750 |
- |
2,009 |
Depreciation of
property, plant and equipment |
- |
- |
153 |
153 |
Depreciation of right of
use assets |
- |
- |
66 |
66 |
Share-based
payments |
159 |
(74) |
160 |
245 |
Adjusted operating loss |
(2,086) |
(1,312) |
(3,966) |
(7,364) |
Year ended 30 April 2020
|
Software Products |
Discovery Sciences |
Corporate & Support |
Total |
|
£’000 |
£’000 |
£’000 |
£’000 |
Revenue |
374 |
1,676 |
- |
2,050 |
Cost of sales |
(179) |
(714) |
- |
(893) |
Gross profit |
195 |
962 |
- |
1,157 |
Research and development expenses |
(4,932) |
(5,347) |
(799) |
(11,078) |
Sales and marketing expenses |
(552) |
(777) |
(35) |
(1,364) |
Other general and administration expenses |
(1,009) |
(629) |
(8,116) |
(9,754) |
Other general and administration expenses – exceptional items |
- |
- |
(1,410) |
(1,410) |
Operating loss |
(6,298) |
(5,791) |
(10,360) |
(22,449) |
Finance costs |
- |
(108) |
(239) |
(347) |
Finance income |
- |
- |
254 |
254 |
Share of loss of joint ventures accounted for using the equity
method |
(89) |
- |
- |
(89) |
Loss before taxation |
(6,387) |
(5,899) |
(10,345) |
(22,631) |
Income tax credit |
511 |
216 |
65 |
792 |
Loss and total comprehensive loss for the period
attributable to equity owners of the parent Company |
(5,876) |
(5,683) |
(10,280) |
(21,839) |
|
|
|
|
|
Adjusted operating loss |
|
|
|
|
Operating
loss |
(6,298) |
(5,791) |
(10,360) |
(22,449) |
Exceptional items |
- |
- |
1,410 |
1,410 |
Amortisation of
intangible assets |
714 |
3,500 |
- |
4,214 |
Depreciation of
property, plant and equipment |
- |
- |
452 |
452 |
Depreciation of right of
use assets |
- |
40 |
92 |
132 |
Share-based
payments |
22 |
(10) |
223 |
235 |
Adjusted operating loss |
(5,562) |
(2,261) |
(8,183) |
(16,006) |
4.
Exceptional items
|
Six months to |
Six months to |
Year to |
31-Oct-20 |
31-Oct-19 |
30-Apr-20 |
Unaudited |
Unaudited |
Audited |
|
£’000 |
£’000 |
£’000 |
Professional fees incurred following departure of former CFO |
977 |
- |
1,410 |
|
977 |
- |
1,410 |
|
|
|
|
In the six months to 31 October 2020
professional fees were incurred in respect to the legal claim
started in the previous financial year.
During the year ended 30 April 2020 a legal
claim was made by the former CFO, Lorimer Headley.
Professional fees were incurred by the Company to represent the
Company and its Directors and to conduct an independent internal
investigation in respect to claims made against the Company and its
Directors. In August 2020, the Company agreed to make a payment as
compensation for loss of office of £150,000 (plus £17,000 in
employers national insurance contributions) and a contribution of
£200,000 towards legal fees. As part of that settlement the Board
has also agreed to provide outplacement assistance up to a value of
£30,000.
There were no exceptional costs in the six
months to 31 October 2019.
5.
Share Capital
|
Number of shares |
Nominal
value£’000 |
Share Premium£’000 |
Authorised, allotted and fully paid |
|
|
|
Ordinary Shares of £0.10 each |
128,571,514 |
12,857 |
59,485 |
|
128,571,514 |
12,857 |
59,485 |
|
Share capital£’000 |
Share premium£’000 |
At 31 October 2019 (Unaudited) |
12,857 |
59,485 |
At 30 April 2020 (Audited) |
12,857 |
59,485 |
At 31 October 2020 (Unaudited) |
12,857 |
59,485 |
6.
Related parties
Included within trade and other payables
is a balance due to Drayson Technologies (Europe) Limited of £1,000
(31 October 2019: £165,000; 30 April 2020: £nil). This company was
demerged from the Group during the year ended 30 April 2019 and is
a related party by virtue of common control.
Expenditure of £14,000 incurred on behalf of the
Group were recharged from Drayson Technologies (Europe) Limited (31
October 2020: £Nil; 30 April 2020: £359,000).
Oxford Sciences Innovation Plc (OSI) is a
related party through the joint venture for LAB10x. During the
period, revenue of £47,000 (31 October 2019: £120,000; 30 April
2020: £162,000) was recognised in relation to support and
maintenance and consultancy services provided to OSI. In addition,
£60,000 (31 October 2019: £Nil; 30 April 2020: £73,000) was billed
to OSI for the reimbursement of expenditure incurred on behalf of
the joint venture, Lab10x.
Included within trade and other receivables at
31 October 2020, is a trade receivable balance of £92,000 (31
October 2019: £Nil; 30 April 2020: £23,000) and accrued income
balance of £22,000 (31 October 2019: £120,000; 30 April 2020:
£54,000) due from OSI.
During the period, £Nil (31 October 2019: £Nil,
30 April 2020: £555,000) was paid to OSI in relation to the Lab10x
joint venture agreement. In agreement with all members of the joint
venture, future payments as obligated under this arrangement have
been deferred.
7.
Principal risks and
uncertainties
The 2020 Annual Report sets out on pages 25 to
28 the principal risks and uncertainties that could impact the
business. There are no changes to these risks and
uncertainties.
8.
Subsequent events
On 13 November 2020, Sensyne announced the
appointment of Derek Baird to its senior management team as
President, North America from 1 December 2020.
On 16 November 2020, Sensyne announced a
five-year non-exclusive Strategic Research Agreement (“SRA”) with
Somerset NHS Foundation Trust for which they will be issued with
1,428,571 £0.10 ordinary shares in the Company at a price of £1.75
per share, subject to the satisfaction of certain conditions
including receipt of a s593 report by the Company.
On 25 November 2020, Sensyne announced a
five-year non-exclusive SRA with Hampshire Hospitals NHS Foundation
Trust for which they will be issued with 1,428,571 £0.10 ordinary
shares in the Company at a price of £1.75 per share, subject to the
satisfaction of certain conditions including receipt of a s593
report by the Company.
On 18 December 2020, Sensyne announced the
appointment of Tony Bourne to the Board as Independent
Non-Executive Director with effect from 31 January 2021. He will
also serve as Chair of the Remuneration Committee.
On 5 January 2021, Sensyne completed a placing,
subscription and open offer (the “Transaction”) on the AIM market
of the London Stock Exchange issuing 30,513,341 new £0.10 ordinary
shares at a price of £0.90 per share. Aggregate gross
proceeds of £27.5 million were raised for the Company and directly
attributable transaction costs of £2.0 million were incurred. On 5
January 2021, a strategic collaboration with Phesi, Inc, a
specialist clinical trials company incorporated in United States of
America, became effective following the completion of the
Transaction. The Phesi agreement comprises a strategic
alliance agreement and a securities purchase agreement. Under
the strategic alliance agreement, Phesi and Sensyne will
collaborate on an exclusive basis to offer synthetic clinical trial
arms and clinical decision support tools combining clinical trial
data with real world data. The initial term of the exclusive
strategic collaboration will be 5-years with an automatic renewal
for successive two-year periods unless terminated. Joint projects
with pharmaceutical company clients will be based on a revenue
share model. Under the terms of the securities purchase agreement,
Sensyne has made a $10 million equity investment into Phesi for 10%
of its fully-diluted share capital, the proceeds of which are to be
used for specific purposes aimed towards enhancing the Phesi
clinical trials data analytics offering and activities that are
connected to the strategic collaboration. The securities purchase
agreement also provides that Lord Drayson will join Phesi's board
of directors.
On 20 January 2021, Sensyne announced a
five-year non-exclusive SRA with The Royal Wolverhampton NHS Trust
for which they will be issued with 1,428,571 £0.10 ordinary shares
in the Company at a price of £1.75 per share, subject to the
satisfaction of certain conditions including receipt of a s593
report by the Company.
Appendix – Recent News
Announcement Date |
Title |
Link |
20-Apr-20 |
Launch of CVm-Health™ ‘Good Neighbour’ app |
Link |
05-May-20 |
Launch of new BPm-Health™ remote monitoring system for the
management of blood pressure in pregnancy in response to COVID-19
pandemic |
Link |
14-May-20 |
Trading and Business Update |
Link |
19-May-20 |
Launch of CVm-Health™ ‘Good Neighbor’ app in the United States with
support from Microsoft and Cognizant |
Link |
19-Aug-20 |
Development of ‘DBm-Health™’ a new software product for people with
or at risk of diabetes |
Link |
03-Sep-20 |
UK launch of ‘SENSE™’ - a clinical algorithm engine, created in
partnership with Microsoft |
Link |
10-Sep-20 |
Appointment Chief Operating Officer |
Link |
30-Sep-20 |
Full Year Results |
Link |
29-Sep-20 |
Acacia Investment in Sensyne |
Link |
30-Sep-20 |
University of Oxford collaboration on Phase II clinical trial in
care homes to prevent respiratory failure due to COVID-19 |
Link |
01-Oct-20 |
Data access agreement with NHS Greater Glasgow and Clyde |
Link |
23-Oct-20 |
Agreement with Bristol Myers Squibb to apply machine learning for
rare blood disease research |
Link |
26-Oct-20 |
Milton Keynes University Hospital sign Strategic Research
Agreement |
Link |
28-Oct-20 |
Strategic partnership with Microsoft and co-development of cloud
and machine learning capabilities |
Link |
02-Nov-20 |
CVm-Health+ software application to facilitate rapid COVID-19
antigen testing study by the University of Oxford |
Link |
13-Nov-20 |
Sensyne Health appoints President, North America, to lead US
expansion |
Link |
16-Nov-20 |
Somerset NHS Foundation Trust sign Strategic Research
Agreement |
Link |
16-Nov-20 |
Sensyne Health achieves five million patient target set at IPO |
Link |
25-Nov-20 |
Hampshire Hospitals NHS Foundation Trust sign Strategic Research
Agreement |
Link |
15-Dec-20 |
Sensyne Health launches first digital health product in the
U.S. |
Link |
18-Dec-20 |
Tony Bourne joins as Independent Non-Executive Director |
Link |
04-Jan-21 |
Result of Open Offer |
Link |
04-Jan-21 |
Completion of Fundraising and Strategic Collaboration with
Phesi |
Link |
14-Jan-21 |
Launch of MagnifEye smartphone application to automate the reading
and Big Data analysis of lateral flow tests using deep learning
AI |
Link |
20-Jan-21 |
The Royal Wolverhampton NHS Trust sign Strategic Research
Agreement |
Link |
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