TIDMINC
RNS Number : 8264I
Incanthera PLC
07 December 2022
7 December 2022
Incanthera plc
("Incanthera" the "Company")
Half-yearly results for the six months ended 30 September
2022
Incanthera plc (AQSE:INC), the company specially focussed on
innovative technologies in dermatology and oncology is pleased to
present its unaudited interim results for the six months ended 30
September 2022.
Incanthera is dedicated to improving treatment options with
innovative therapeutics combined with targeted delivery
technologies.
Highlights:
-- Commercialisation discussions for our skincare formulations
continue to progress positively, specifically concentrated towards
the global potential for their various applications.
-- Strength in infrastructure and intermediary relationships
enhance the pathway to potential commercial success.
Financial Highlights:
-- Strong financial control through period, ensuring financial position on budget.
-- Operating losses for the period GBP511k (2021: GBP582k).
As announced alongside the Company's full year results on 2
September, the Company has entered into certain agreements,
including inter alia, director's agreements to waive remuneration
and a loan facility agreement with certain directors of up to
GBP190,000 (current undrawn balance of GBP140,000). These
arrangements provide the Company with sufficient cash runway to
support its operations until Q4 2023.
Tim McCarthy, Chairman, commented:
"The period under review has concentrated upon furthering
discussions to capitalise on the potential for various applications
of our skincare portfolio for commercial success.
These discussions continue to show great potential and the team
is dedicated to reaching the right conclusion for the
commercialisation of our skincare range as we look to take our
Company forward with future success for our team and our
shareholders.
As we approach the end of 2022, I would like to thank our
shareholders for their continuing loyalty and support and our team
for their unwavering hard work and dedication. We look forward to
sharing further progress as soon as we are able next year."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation.
The Directors of Incanthera accept responsibility for this
announcement.
For further information, please contact:
Tim McCarthy, Chairman +44 (0) 7831 675747
tim.mccarthy@incanthera.com
Simon Ward, Chief Executive Officer +44 (0) 7747 625506
simon.ward@incanthera.com
Suzanne Brocks, Head of Communications +44 (0) 7776 234600
suzanne.brocks@incanthera.com
Aquis Exchange Corporate Adviser:
Cairn Financial Advisers LLP +44 (0) 20 7213 0880
Jo Turner/James Lewis
Broker:
Stanford Capital Partners Ltd +44 (0) 20 3650 3650
Patrick Claridge/John Howes/Bob Pountney
Notes to Editors
Incanthera is a specialist company focused on transformative
treatment technologies in oncology and dermatology. It seeks to
identify and develop innovative solutions to current clinical,
commercially relevant unmet needs, utilising new technology from
leading academic institutions and industry, combined with
Incanthera's unique targeting delivery platform.
The Company's current lead pharmaceutical product, and focus, is
Sol, an innovative topical product for the treatment of solar
keratosis. This has achieved proof of concept and the Company is
now focussed upon delivering Sol to a commercial partner.
The Company originated from the Institute of Cancer Therapeutics
(ICT) at the University of Bradford and has acquired and developed
a portfolio of specific targeting therapeutics through both a
Pipeline Agreement with the ICT and via other corporate
acquisitions and partnerships. Incanthera's strategy is to develop
each candidate in the portfolio from initial acquisition or
discovery to securing its future through commercially valuable
partnerships at the earliest opportunity in its development
pathway.
The Company has developed sophisticated formulation and
targeting technology platforms to address previously unavailable
options across dermatology and oncology. These deliver treatments
specifically to a disease site, reducing side effects whilst
enabling higher doses to reach a target and therefore increase
efficacy.
Incanthera's Board and management possess a broad range of
commercial, scientific, and public company experience. In addition,
Incanthera benefits from a diverse, experienced team of advisers
who cover the necessary range of specialities required for all
aspects of the Company's business and has several beneficial
collaborative relationships with both clinicians and clinical
centres.
For more information on the Company please visit:
www.incanthera.com
Incanthera plc
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2022
Chairman's Statement
I am pleased to present our half-yearly results for 2022.
The six months under review has seen much progress behind the
scenes, as we refine and concentrate all aspects of the work
required to conclude a successful commercial deal for Sol and our
skincare portfolio.
The infrastructure that we have established to support further
research in skincare technologies earlier in the year has been
stepped up across the board, including scaling up for manufacture
of samples and exploring new formulations for potential
applications in dermatological care, prevention, and treatment.
The work that has been undertaken by all members of our team, in
each of their respective roles, converges towards this goal as
discussions and tests around exploratory scenarios are further
concentrated and responses are met admirably.
The management team feel confident of the potential outcomes for
Sol, and we look forward to updating shareholders on our progress
as soon as we are able.
Alongside, we continue to work and meet with the specialist
academics at The University of Bradford, across both existing and
exciting, new potential IP. The relationship and heritage continue
from our origins as a spin out of the University many years ago and
we value the partnership.
Our specialist patent advisers and team continue to protect our
products globally and our financial controls are strict maintaining
a very lean and focussed team, intent on successfully delivering
our goals, which has been a tough undertaking against the backdrop
we have experienced in the past few years.
The advice and guidance of our external advisers is, as ever, a
great asset to the Company and I thank them for their support this
year.
I remain proud of the team at Incanthera, and I would also like
to thank our loyal shareholders for their continued support. We
look forward to being able to update you again further, and in the
meantime send my wishes for a happy and peaceful Christmas.
Tim McCarthy
Chairman
7 December 2022
Chief Executive's Review
I am pleased to present Incanthera's half-yearly results for
2022.
This past six months have been focussed on developing our
commercial relationships. Against an uncertain economic and, once
again, challenging global backdrop, the concentration and
dedication of everyone involved has been very high.
Our skincare formulation experts continue to invent, develop,
and refine new technologies which we believe will yield a full
range of commercial products. Meanwhile, the commercial development
of Sol continues to gain strength as a novel treatment for solar
keratosis.
Once again, as we close this period under review there is
significant opportunity across several areas for both the
furthering of commercial deal negotiations and possibilities for
portfolio expansion. The global marketplace for us in this space
remains a huge opportunity.
Support
Our manufacturing capability at Sheffield has given us an
excellent base to produce batch samples, research new test
formulations and technologies for potential applications across a
range of dermatological indications. My thanks to the expertise of
our team there and the infrastructure that supports the logistics,
safety, and storage of our assets.
We also recognise and acknowledge our partnership with the ICT
at the University of Bradford, together with their university
colleagues in oncology and skin sciences and their unwavering
support in our endeavours.
The management team has shown great strength and maturity in
their accommodation and progression of commercial discussions this
year and it is their dedication and belief in the goals of our
company that make a critical difference.
We are a small team, but a determined and ambitious one. We
remain confident in our current opportunities, and we look forward
to providing further updates.
I would like to thank our shareholders for their continued
belief and support in our company.
Simon Ward
Chief Executive Officer
7 December 2022
Consolidated Statement of Comprehensive Income
for the six months ended 30 September 2022 - unaudited
Six months Six months Year ended
ended ended 31 March
30 September 30 September 2022
2022 2021
GBP'000 GBP'000 GBP'000
Notes unaudited unaudited Audited
-------------------------------------- ------ -------------- -------------- -----------
Operating expenses (486) (557) (937)
Share-based compensation 4 (25) (25) (148)
Total operating expenses (511) (582) (1,085)
Operating loss (511) (582) (1,085)
Loss on ordinary activities before
taxation (511) (582) (1,085)
Taxation - - 77
-------------------------------------- ------ -------------- -------------- -----------
Loss and total comprehensive expense
attributable to equity holders for
the period (511) (582) (1,008)
-------------------------------------- ------ -------------- -------------- -----------
Loss earnings per share (pence)
-------------------------------------- ------ -------------- -------------- -----------
Basic loss per share 3 (0.69) (0.79) (1.36)
Diluted loss per share 3 (0.69) (0.79) (1.36)
-------------------------------------- ------ -------------- -------------- -----------
Consolidated Statement of Financial Position
as at 30 September 2022 - unaudited
As at As at As at 31
30 September 30 September March
2022 2021 2022
GBP'000 GBP'000 GBP'000
Notes Unaudited unaudited Audited
------------------------------- ------ -------------- -------------- ---------
ASSETS
Non-current assets
Property, plant and equipment 1 - 2
Intangible assets 409 526 538
-------------------------------- ------ -------------- -------------- ---------
Total non-current assets 410 526 540
Current assets
Trade and other receivables 115 220 118
Current tax receivable 77 - 75
Cash and cash equivalents 28 627 295
-------------------------------- ------ -------------- -------------- ---------
Total current assets 220 847 488
Total assets 630 1,373 1,028
-------------------------------- ------ -------------- -------------- ---------
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 202 239 196
Total current liabilities 202 239 196
Equity
Ordinary shares 5 1,528 1,482 1,482
Share premium 5,057 5,055 5,055
Reorganisation reserve 2,715 2,715 2,715
Warrant reserve 1,088 1,054 1,054
Share based compensation 210 62 185
Retained deficit (10,170) (9,234) (9,659)
-------------------------------- ------ -------------- -------------- ---------
Total equity 428 1,134 832
Total liabilities and equity 630 1,373 1,028
-------------------------------- ------ -------------- -------------- ---------
Consolidated Statement of Changes in Equity
for the six months ended 30 September 2022 - unaudited
Share Share Merger Warrant Share based Accumulated
capital premium reserve reserve compensation losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2022 1,482 5,055 2,715 1,054 185 (9,659) 832
Total comprehensive
expense for the
period - - - - - (511) (511)
Transactions with
owners
Share-based compensation
- creditor non-cash
settlement 46 36 - - - - 82
Share-based compensation
- warrants - (34) - 34 - - -
Share-based compensation
- share options - - - - 25 - 25
Total transactions
with owners 46 2 - 34 25 - 107
-------------------------- --------- --------- --------- --------- -------------- ------------ --------
Balance at 30 September
2022 1,528 5,057 2,715 1,088 210 (10,170) 428
-------------------------- --------- --------- --------- --------- -------------- ------------ --------
Share Share Merger Warrant Share based Accumulated
capital premium reserve reserve compensation losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2021 1,482 5,055 2,715 1,054 37 (8,651) 1,691
Total comprehensive
expense for the
period - - - - - (582) (582)
Transactions with
owners
Share-based compensation
- share options - - - - 25 - 25
Total transactions
with owners - - - - 25 - 25
-------------------------- --------- --------- --------- --------- -------------- ------------ --------
Balance at 30 September
2021 1,482 5,055 2,715 1,054 62 (9,234) 1,134
-------------------------- --------- --------- --------- --------- -------------- ------------ --------
Share Share Merger Warrant Share based Accumulated
capital premium reserve reserve compensation losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2021 1,482 5,055 2,715 1,054 37 (8,651) 1,692
Total comprehensive
expense for the
period - - - - - (1,008) (1,008)
Transactions with
owners
Share-based compensation
- share options - - - - 148 - 148
Total transactions
with owners - - - - 148 - 148
-------------------------- --------- --------- --------- --------- -------------- ------------ --------
Balance at 31 March
2022 1,482 5,055 2,715 1,054 185 (9,659) 832
-------------------------- --------- --------- --------- --------- -------------- ------------ --------
The registered number of Incanthera plc is 11026926.
Consolidated Statement of Cash Flows
for the six months ended 30 September 2022 - unaudited
Six months Six months Year ended
ended ended 31 March
30 September 30 September 2022
2022 2021
GBP'000 GBP'000 GBP'000
Unaudited unaudited audited
---------------------------------------- -------------- -------------- -----------
Cash flows from operating activities
Loss before taxation for the period (511) (582) (1,085)
Depreciation and amortisation 130 129 118
Share-based compensation 25 25 148
----------------------------------------- -------------- -------------- -----------
(356) (428) (819)
Changes in working capital
(Increase)/decrease in trade and
other receivables 3 (86) 18
Increase/(decrease) in trade and
other payables 6 74 31
Creditor non-cash settlement 82 - -
Cash used in operations 91 (12) 49
Taxation received (2) 110 110
----------------------------------------- -------------- -------------- -----------
Net cash used in operating activities (267) (330) (660)
----------------------------------------- -------------- -------------- -----------
Cash flows from investing activities
Purchase of property, plant and
equipment - - (2)
Net cash used in investing activities - - (2)
----------------------------------------- -------------- -------------- -----------
Cash flows from financing activities
Proceeds from issue of shares - - -
Issue costs - - -
Net cash generated from financing - - -
activities
Movements in cash and cash equivalents
in the period (267) (330) (662)
----------------------------------------- -------------- -------------- -----------
Cash and cash equivalents at start
of period 295 957 957
----------------------------------------- -------------- -------------- -----------
Cash and cash equivalents at end
of period 28 627 295
----------------------------------------- -------------- -------------- -----------
1. GENERAL INFORMATION
Incanthera plc ('the Company') is a public limited company
incorporated in England and Wales and was admitted to trading on
the AQSE Growth Market (formerly NEX Exchange), under the symbol
INC on 28 February 2020.
The address of its registered office is 76 King Street,
Manchester, England, M2 4NH and the registered company number is
11026926. The principal activity of the Company is clinical stage
drug development.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRS') as adopted by the United Kingdom, IFRIC interpretations
and the Companies Act 2006 applicable to companies operating under
IFRS.
The consolidated financial statements have been prepared under
the historical cost convention modified by the revaluation of
certain financial instruments.
The consolidated financial statements are presented in Sterling
(GBP) and rounded to the nearest GBP000. This is the predominant
functional currency of the Group and is the currency of the primary
economic environment in which it operates.
Significant management judgement in applying accounting policies
and estimation uncertainty
When preparing the condensed consolidated half-yearly financial
information, the Directors make a number of judgements, estimates
and assumptions about the recognition and measurement of assets,
liabilities, income and expenses.
The following are significant management judgements and
estimates in applying the accounting policies of the Group that
have the most significant effect on the condensed consolidated
half-yearly financial information. Actual results may be
substantially different.
Research and development expenditure
Careful judgement by the Directors is applied when deciding
whether the recognition requirements for development costs have
been met. This is necessary as the economic success of any product
development is uncertain until such time as technical viability has
been proven and commercial supply agreements are likely to be
achieved. Judgements are based on the information available at each
reporting date which includes the progress with testing and
certification and progress on, for example, establishment of
commercial arrangements with third parties. In addition, all
internal activities related to research and development of new
products are continuously monitored by the Directors.
3. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss for the
period attributable to equity holders by the weighted average
number of ordinary shares outstanding during the period.
For diluted loss per share, the loss for the period attributable
to equity holders and the weighted average number of ordinary
shares outstanding during the period is adjusted to assume
conversion of all dilutive potential ordinary shares. As the effect
of the share options would be to reduce the loss per share, the
diluted loss per share is the same as the basic loss per share.
The calculation of the Group's basic and diluted loss per share
is based on the following data:
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
------------------------------------- --------------- --------------- -----------
Loss for the period attributable
to equity holders (511) (582) (1,006)
------------------------------------- --------------- --------------- -----------
As at As at As at
30 September 30 September 31 March
2022 2021 2022
Number Number Number
unaudited unaudited audited
------------------------------------- --------------- --------------- -----------
Weighted average number of ordinary
shares 74,120,611 74,082,871 74,082,871
Weighted average number of ordinary
shares adjusted for the effects of
dilution 74,120,611 74,082,871 74,082,871
------------------------------------- --------------- --------------- -----------
Pence Pence Pence
Loss per share - basic and diluted (0.69) (0.79) (1.36)
------------------------------------- --------------- --------------- -----------
4. SHARE-BASED PAYMENTS
As at the end of the current period, the reconciliation of share
option scheme movements is as follows:
As at 30 September
2022
Number WAEP
pence
------------------------------------ ------------ --------
Outstanding at 1 April 2022 7,214,000 11.59
Granted during the period - -
Exercised during the period - -
Lapsed/cancelled during the period - -
------------------------------------ ------------ --------
Outstanding at 30 September 2022 7,214,000 11.59
------------------------------------ ------------ --------
During the six month period ended 30 September 2022, a
share-based payment charge of GBP24,631 (2021: GBP24,631) was
expensed to the consolidated Statement of Comprehensive Income.
The fair values of the options granted have been calculated
using a Black-Scholes model.
5. ISSUED CAPITAL AND RESERVES
Ordinary shares
Company
Number of Shares Share Capital (GBP'000)
---------------- -----------------------
At 31 March 2022 74,082,871 1,482
---------------- -----------------------
At 30 September 2022 76,385,028 1,528
---------------- -----------------------
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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END
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