08:00 Tue 15 Oct 2019
Sareum Holdings PLC - Final Results
(AIM:SAR)
("
FINAL RESULTS FOR THE YEAR ENDED
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
The Company expects to publish its Annual Report and Accounts in
Operational Highlights
Proprietary Selective TYK2/JAK1 Inhibitors in Autoimmune Diseases and Cancer
· Advancing two distinct molecules selected from proprietary dual tyrosine kinase 2 (TYK2) / Janus kinase 1 (JAK1) programmes as potential once-daily, oral immunotherapies for autoimmune diseases (SDC-1801) and cancers (SDC-1802)
o SDC-1801 has demonstrated excellent tolerability in toxicology studies in rodents and has progressed into longer-term toxicology and dose-finding studies, which would form part of the regulatory documentation needed to apply to begin human trials
o Additional research to refine the Company's clinical plans, including prioritisation of indications, is continuing, with detailed profiling of SDC-1801 in human tissue, and of SDC-1802 in immune-competent mouse models of cancer
o Positive preclinical data demonstrating the anti-tumour activity of SDC-1802 via novel immunotherapeutic mechanism of action to be presented at the upcoming 2019
o Human clinical trials are targeted to start in late-2020, subject to successful progress and financing
o Programmes continue to attract interest from international pharmaceutical companies
SRA737 - Chk1 inhibitor in Multiple Cancer Indications Exhibiting Defined Genetic Profiles
· In
· In
· The ongoing SRA737 monotherapy and SRA737+LDG combination Phase 1/2 studies continue with completion expected in the first half of 2020
· Sierra also presented evidence at international congresses highlighting the potential of combining SRA737 with other novel therapeutic approaches that are gaining traction as mainstays of targeted cancer treatment, including PARP inhibition (PARPi) and immune checkpoint blockade
Corporate update - Board of Directors strengthened
· Dr
Financial highlights (subject to audit)
· Raised
· Raised
· Loss on ordinary activities (after taxation) of
· Cash at bank as at
Dr
"We are very pleased with the progress of our proprietary dual TYK2/JAK1 programmes. We believe these offer a novel oral immunotherapy approach to addressing unmet needs in autoimmune diseases and cancer and that their mechanism is gaining increasing interest from the pharmaceutical industry. In line with our business model, we continue to engage with potential partners with a view to securing commercial licences when they reach late preclinical or early clinical stages.
"We also remain optimistic that Sierra will be successful in finding a non-dilutive solution that will enable the development of SRA737 to advance. The positive clinical results presented in June and the exciting preclinical findings presented throughout the year from combining SRA737 with advanced cancer therapies suggests that SRA737 has significant value. In addition, the advancement of SRA737 in its clinical studies could result in
"We expect to report on continued progress across our active portfolio during the coming year and beyond, which we believe will result in important value generation for our shareholders."
Conference call
Drs
Please dial into the call using the numbers below 5-10 minutes before the scheduled start time. Dial-in details are:
·
· Standard International Access: +44 (0)20 3003 2666
The call password is
The results presentation is available in the Document Centre in the Investors section of the
For further information, please contact:
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01223 497 700 |
Strand |
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020 7409 3494 |
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020 3764 2341 |
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020 7638 9571 |
Notes for editors:
SRA737 was discovered and initially developed by scientists at
- Ends -
Full year results for the 12 months ended
Chairman's and CEO's Statement
The year to end
We have been very encouraged by the good progress with our TYK2/JAK1 inhibitors SDC-1801 (targeting autoimmune diseases) and SDC-1802 (targeting cancer) in formal preclinical development.
SDC-1801 is advancing as planned and has demonstrated excellent tolerability in rodent studies and has now moved into longer-term toxicology and dose-finding studies, which would form part of the regulatory documentation needed to apply to begin human trials.
We are also pleased to have the opportunity to present new preclinical data, demonstrating the anti-tumour activity of SDC-1802 (formerly
We believe our two TYK2/JAK1 inhibitors offer a novel oral immunotherapy approach to addressing unmet needs in autoimmune diseases and cancer and the mechanism by which they act appears to be gaining increasing credibility and interest from the pharmaceutical industry. In line with our business model, we continue to engage with potential partners with a view to securing commercial licences when they reach late preclinical or early clinical stages.
With regards to SRA737, in
These data clearly highlight the potential of SRA737 to become an attractive new therapeutic option for patients in several important and underserved cancer indications. In addition, Sierra outlined a possible route to market for SRA737 in anogenital cancer, and indicative initial human trials of SRA737 in combination with other drug modalities (PARP inhibitors and immuno-oncology drugs).
Shortly after the ASCO data were presented, Sierra announced that it was exploring non-dilutive strategic options to support the next stages of development of SRA737. Sierra made this decision on the basis that it was prioritising its resources on advancing the development of its Phase 3 myelofibrosis candidate momelotinib.
We continue to believe, based on the promising clinical and preclinical data generated to date, that Sierra has every chance of finding a suitable solution that will enable the development of SRA737 to advance. This, in due course, would lead to
Sierra's decision does mean, however, that the clinical development milestones payments that
Achieving two near-term milestones in particular - dosing of the first patient with SRA737 in a Phase 1 trial in the US and/or dosing of the first patient in a randomised Phase 2 trial - would generate revenue to
The short-term absence of this milestone income has led to the Company focusing its cash spend by investing in its proprietary TYK2/JAK1 inhibitor assets as efficiently as possible. The Company is therefore deploying its resources on the necessary studies that would enable these assets to enter clinical studies in late 2020 in priority indications, as well as developing a compelling data package designed to attract a development partner at an appropriate point.
We are now fully focused on these goals which would put us in a strong position to achieve a licensing agreement with a third party during the late preclinical or early clinical phases and are expected to provide significant returns to
Programme updates
Proprietary Pipeline - Selective TYK2/JAK1 Inhibitors in Autoimmune Diseases and Cancer
TYK2 and JAK1 are both members of the Janus Kinase (JAK) family of protein kinase enzymes with important roles in maintaining a healthy immune system. Both kinases have well-documented roles in promoting inflammatory responses in autoimmune diseases and tumour cell proliferation in certain cancers.
There are currently no marketed products with specific selectivity for TYK2. However, members of the JAK family are the targets of several marketed and clinical-stage drugs in both disease areas. There is notable interest in the pharmaceutical industry for novel molecules that can selectively target TYK2 and JAK1, and particularly for those that can avoid side-effects from inadvertent activity via JAK2 or JAK3.
We remain optimistic about both
Additional research to refine the Company's clinical plans, including prioritisation of indications, is underway for clinical trials, which are targeted to start in late 2020, subject to successful progress and financing.
SDC-1801 - targeting autoimmune diseases
SDC-1801 and related molecules have previously shown promising activity in autoimmune disease models, including psoriasis, rheumatoid arthritis, inflammatory bowel disease and systemic lupus erythematosus (lupus).
SDC-1801 is currently being advanced through a series of toxicology and other preclinical studies designed to form part of the regulatory documentation needed to apply to begin human trials in healthy volunteers, which are targeted to begin in 2020, subject to successful progress and financing.
The compound has demonstrated excellent tolerability in toxicology studies in rodents (as reported in
In addition, a short and robust manufacturing route has been developed for SDC-1801 to produce active ingredient for both preclinical and clinical studies and the product required for the next round of toxicology studies has been delivered. Research is ongoing to find the most reliable manufacturing process for the best solid form of the molecule to progress into clinical studies.
SDC-1802 - targeting cancers
SDC-1802 and related TYK2/JAK1 inhibitors have previously shown encouraging anti-tumour activity in multiple cancer disease models.
The presentation will describe how SDC-1802 (formerly
These positive results were seen when SDC-1802 was dosed orally, as a monotherapy or in combination with chemotherapy/ They provide increasing evidence that TYK2/JAK1 inhibition could become a new approach to cancer therapy and further supports the SDC-1802 cancer research programme.
The Company has completed formulation studies to maximise the amount of compound delivered following oral dosing of SDC-1802. The chemistry to produce SDC-1802 uses the same sequence of reactions as those utilised in the production of SDC-1801. Formal optimisation of this process has not yet been initiated for SDC-1802, however, the compound has already been prepared on a >100g scale, meaning the Company has enough material in hand to initiate short-term toxicology studies in rodents.
The Company's stated value-generating strategy is to secure commercial licences when its assets reach late preclinical or early clinical stages and management is engaged in initial discussions with several potential partners.
Licensed programme - SRA737: A Selective Chk1 inhibitor
SRA737 is a potent, highly selective, orally bioavailable small molecule inhibitor of Checkpoint Kinase 1 (Chk1), a key regulator of important cell cycle checkpoints and central mediator of the DNA Damage Response (DDR) network.
SRA737 was discovered and initially developed by scientists at
CPF has a Co-investment and Partnership agreement with
SRA737 clinical update
During 2018/2019, SRA737 was investigated by Sierra in a broad clinical development programme targeting patients with genetically defined tumours of different origins that harbour genomic alterations linked to increased DNA replication stress. Such tumours are hypothesised to be more sensitive to Chk1 inhibition.
At the
The studies delivered highly encouraging results:
· SRA737 demonstrated notable anti-cancer activity in multiple indications including a 30% Overall Response Rate (ORR) in evaluable patients with anogenital cancer treated with SRA737+LDG.
Anogenital cancer is an indication for which the second-line metastatic setting represents a significant unmet medical need, with there being no approved therapies and a very poor life expectancy for patients.
· Additionally, evaluable subjects whose tumours harboured distinct genetic profiles (RAS wild type with FA/BRCA gene network mutations) displayed favourable outcomes across multiple indications, with an ORR of 25%.
SRA737 Preclinical Opportunities
Sierra also presented evidence highlighting the potential of combining SRA737 with other novel therapeutic approaches that are gaining traction as mainstays of targeted cancer treatment. These include PARP inhibition (PARPi) and immune checkpoint blockade.
· At the DDR Therapeutics Summit in
· At the
· At an analysts' meeting held during ASCO, Sierra presented similarly striking data with the SRA737+LDG plus anti-PD-L1 combination in a mouse model of colorectal cancer, with 80% regressions observed following three treatment cycles.
SRA737 - Current Status
The development work that Sierra has conducted has positioned SRA737 as potentially one of the leading clinical assets targeting the DDR pathway, with clinical safety & efficacy of SRA737 +/- LDG supporting standalone development and compelling preclinical data supporting its use in combination with both PARP inhibitors (PARPi) and immuno-oncology (IO) therapy such as immune checkpoint blockade.
Sierra had stated that future studies were being planned to investigate SRA737 further in all of these areas. However, in
The ongoing SRA737 monotherapy and SRA737+LDG combination Phase 1/2 studies are expected to run through to completion, currently anticipated in the first half of 2020 (clinicaltrials.gov database).
The achievement of two near-term milestones in particular - dosing of the first patient with SRA737 in a Phase 1 trial in the US and/or dosing of the first patient in a randomised Phase 2 trial - will generate revenue to
Aurora+FLT3 Inhibitors
While the Company focuses its research resources on completing the preclinical development of its TYK2/JAK1 programmes, it is seeking a licence partner for the Aurora+FLT3 programme and discussions are ongoing with a number of interested parties.
Corporate Update
During the year,
In
Financial Review
The cash balance includes proceeds from a placement that raised
It does not include the proceeds from a placement and offer that was announced in
The new funds are being deployed to progress the Company's TYK2/JAK1 drug development programmes as well as for working capital purposes.
Non-cash assets include a R&D tax credit of
Operating expenses for the period at
The loss on ordinary activities (after taxation) was
Outlook
Good progress is continuing to be made with our wholly owned TYK2/JAK1 inhibitor assets and positive clinical and preclinical data has been generated with SRA737. However, these positives have been somewhat overshadowed by Sierra's decision, which has delayed the achievement of near-term clinical milestones that would have resulted in significant revenue for
The Board continue to believe that the data with SRA737 clearly highlights its potential to become an attractive new therapeutic option for patients in several important and underserved cancer indications. Final results from the two ongoing clinical trials are expected in 2020. This gives the Board confidence that Sierra will find a solution that will enable the development of SRA737 to advance, and, in due course,
The Board remains in dialogue with CPF to ensure it is informed of developments and is committed to updating shareholders and the market in general as and when it can.
The Board and management are also continuing to employ rigorous capital management in the development of its internal assets and its overall business.
The Company is fully focused advancing the preclinical development programmes with SDC-1801 and SDC-1802. These programmes are designed to enable the selection of priority indications for clinical studies so that the Company can continue to generate compelling evidence for these candidates to facilitate ongoing discussions with potential partners towards future licensing agreements at optimal valuations. The Directors will continue to review the potential higher value of a later-stage licensing deal versus the requirement for any extra funding.
The Company expects to report on continued progress during the coming year and beyond, which the Board believes will demonstrate the value that is being generated from both internally and externally controlled programmes.
Dr
Chairman Chief Executive Officer
Consolidated statement of comprehensive income for the year ended
|
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2019 |
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2018 |
|
|
Notes |
£ |
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£ |
|
CONTINUING OPERATIONS |
|
|
|
|
|
Revenue |
|
- |
|
- |
|
|
|
|
|
|
|
Other operating income |
|
- |
|
- |
|
Administrative expenses |
|
(1,676,439) |
|
(1,709,699) |
|
Share of (loss)/profit of associates |
|
(10,016) |
|
(12,264) |
|
|
|
|
|
|
|
OPERATING LOSS |
|
(1,686,455) |
|
(1,721,963) |
|
|
|
|
|
|
|
Finance income |
|
4,085 |
|
3,745 |
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAX |
5 |
(1,682,370) |
|
(1,718,218) |
|
|
|
|
|
|
|
Income tax |
6 |
229,905 |
|
248,697 |
|
|
|
|
|
|
|
LOSS FOR THE YEAR |
|
(1,452,465) |
|
(1,469,521) |
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR |
|
(1,452,465) |
|
(1,469,521) |
|
|
|
|
|
|
|
Loss attributable to: |
|
|
|
|
|
Owners of the parent |
|
(1,452,465) |
|
(1,469,521) |
|
|
|
|
|
|
|
Total comprehensive income attributable to: |
|
|
|
|
|
Owners of the parent |
|
(1,452,465) |
|
(1,469,521) |
|
|
|
|
|
|
|
Earnings per share expressed |
|
|
|
|
|
in pence per share: |
7 |
|
|
|
|
Basic and diluted |
|
(0.05)p |
|
(0.05)p |
|
|
|
|
|
|
|
Consolidated balance sheet as at
|
|
2019 |
|
2018 |
|
Notes |
£ |
|
£ |
ASSETS |
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
Intangible assets |
|
- |
|
- |
Property, plant and equipment |
|
- |
|
8,000 |
Investments in Associates |
4 |
31,359 |
|
41,375 |
|
|
|
|
|
|
|
31,359 |
|
49,375 |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Trade and other receivables |
|
59,476 |
|
137,832 |
Tax receivable |
|
230,933 |
|
253,562 |
Cash and cash equivalents |
8 |
919,343 |
|
1,375,275 |
|
|
|
|
|
|
|
1,209,752 |
|
1,766,669 |
LIABILITIES |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Trade and other payables |
|
146,926 |
|
183,455 |
|
|
|
|
|
NET CURRENT ASSETS |
|
1,062,826 |
|
1,583,214 |
|
|
|
|
|
NET ASSETS |
|
1,094,185 |
|
1,632,589 |
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
Called up share capital |
|
718,997 |
|
686,305 |
Share premium |
|
13,162,052 |
|
12,395,744 |
Share-based compensation reserve |
|
407,872 |
|
292,811 |
Merger reserve |
|
27 |
|
27 |
Retained earnings |
|
(13,194,763) |
|
(11,742,298) |
|
|
|
|
|
TOTAL EQUITY |
|
1,094,185 |
|
1,632,589 |
|
|
|
|
|
Consolidated statement of changes in equity for the year ended
|
Called up share capital |
|
Retained earnings |
|
Share premium |
|
Share-based compensation reserve |
|
Merger reserve |
|
Total equity |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
661,305 |
|
(10,272,777) |
|
11,765,111 |
|
191,945 |
|
27 |
|
2,345,611 |
|
|
|
|
|
|
|
|
|
|
|
|
Changes in equity |
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital |
25,000 |
|
- |
|
630,633 |
|
- |
|
- |
|
655,633 |
Total comprehensive income |
- |
|
(1,469,521) |
|
- |
|
- |
|
- |
|
(1,469,521) |
Share-based compensation |
- |
|
- |
|
- |
|
100,866 |
|
- |
|
100,866 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
686,305 |
|
(11,742,298) |
|
12,395,744 |
|
292,811 |
|
27 |
|
1,632,589 |
|
|
|
|
|
|
|
|
|
|
|
|
Changes in equity |
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital |
32,692 |
|
- |
|
766,308 |
|
|
|
|
|
799,000 |
Total comprehensive income |
- |
|
(1,452,465) |
|
- |
|
|
|
|
|
(1,452,465) |
Share-based compensation |
- |
|
- |
|
- |
|
115,061 |
|
|
|
115,061 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
718,997 |
|
(13,194,763) |
|
13,162,052 |
|
407,872 |
|
27 |
|
1,094,185 |
Consolidated cash flow statement for the year ended
|
|
2019 |
|
2018 |
|
Notes |
£ |
|
£ |
Cash flows from operating activities |
|
|
|
|
Cash generated from operations |
9 |
(1,515,764) |
|
(1,635,688) |
Tax received |
|
252,534 |
|
43,365 |
|
|
|
|
|
Net cash outflow from operating activities |
|
(1,263,230) |
|
(1,592,323) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Interest received |
|
4,085 |
|
3,745 |
|
|
|
|
|
Net cash from investing activities |
|
4,085 |
|
3,745 |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Loan repayment by director |
|
4,213 |
|
2,711 |
Share issue |
|
32,692 |
|
25,000 |
Share premium on share issue |
|
766,308 |
|
630,633 |
|
|
|
|
|
Net cash inflow from financing activities |
|
803,213 |
|
658,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
(455,932) |
|
(930,234) |
|
|
|
|
|
Cash and cash equivalents at beginning of year |
8 |
1,375,275 |
|
2,305,509 |
|
|
|
|
|
Cash and cash equivalents at end of year |
8 |
919,343 |
|
1,375,275 |
Notes to the consolidated financial statements for the year ended
1. Basis of preparation
The consolidated financial statements of
IFRS comprise standards and interpretations approved by the IASB. IFRS as adopted by the
Going concern
The directors consider that the cash held at the year-end, together with the proceeds of the placing received in
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 30 June each year. Control is achieved where the Company has the power to govern the financial and operating policies of another entity or business, so as to obtain benefits from its activities. The consolidated financial statements present the results of the Company and its subsidiaries (the Group) as if they formed a single entity. Inter-company transactions and balances between Group companies are eliminated on consolidation.
2. Statutory Information
3. Accounting policies
The principal accounting policies applied are set out below.
Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Motor vehicles - straight line over three years
Fixtures and computers - straight line over three or four years
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to insignificant risk of change in value.
Taxation
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exception:
Deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on the tax rates and laws enacted or substantively enacted at the balance sheet date.
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Operating lease agreements
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.
Pension contributions
The Group does not operate a pension scheme for the benefit of its employees but instead makes contributions to their personal pension policies. The contributions due for the period are charged to the profit and loss account.
Employee share scheme
The Group has in place a share option scheme for employees, which allows them to acquire shares in the Company. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value of options granted is recognised as an expense spread over the estimated vesting period of the options granted. Fair value is measured using the Black-Scholes model, taking into account the terms and conditions upon which the options were granted.
Revenue recognition
Revenue is measured as the fair value of the consideration received or receivable in the normal course of business, net of discounts, VAT and other sales related taxes and is recognised to the extent that it is probable that the economic benefits associated with the transaction will flow to the Company. Grant income is recognised as earned based on contractual conditions, generally as expenses are incurred.
Investment in associates
An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investments in associates are accounted for using the equity method, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the associate's net assets with recognition in the profit and loss of the share of the associate's profit or loss.
Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and assumptions that have the most significant effects on the carrying amounts of the assets and liabilities in the financial information are considered to be research and development costs and equity-settled share-based payments.
Accounting standards and interpretations not applied
At the date of authorisation of these financial statements, the following standards and interpretations relevant to the Group that have not been applied in these financial statements were in issue but not yet effective:
Standard |
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Effective for accounting periods |
||
IFRS 16 |
|
Leases |
|
|
Amendments to IAS 28 |
|
Clarifies how IAS 28 interacts with IFRS 9 |
|
|
Annual improvements to IFRS Standards 2015-2017 cycle |
|
|
||
Amendments to IAS 1 |
|
Definition of material |
|
|
The Directors anticipate that the adoption of these standards and interpretations in future years will have no material impact on the financial statements of the Group.
No standards or interpretations adopted in the year had any material impact on the financial statements of the Group.
4. Investments in associates
|
Interest in associates |
Cost At |
1,138,125 |
|
|
Impairment At |
|
Impairment for year |
1,096,750 |
|
10,016 |
At |
1,106,766 |
|
|
Net book value |
|
At |
31,359 |
|
|
At |
41,375 |
Interest in joint venture
The Investment in Associates represents the investment by the Group in the partnership with the
5. (Loss)/profit before income tax
The (loss)/profit before income tax is stated after charging:
|
|
2019 |
|
2018 |
|
|
£ |
|
£ |
Other operating leases |
|
18,420 |
|
13,902 |
Depreciation - owned assets |
|
8,000 |
|
5,333 |
Research and development |
|
939,174 |
|
1,035,708 |
Auditor's remuneration - see analysis below |
|
13,375 |
|
13,100 |
|
|
|
|
|
|
|
|
|
|
The analysis of auditor's remuneration is as follows: |
|
|
|
|
Fees payable to the Company's auditor for the audit of the annual accounts: |
|
|
|
|
Audit of the Company |
|
4,600 |
|
4,500 |
Audit of subsidiaries |
|
7,450 |
|
7,300 |
|
|
|
|
|
Total audit fees |
|
12,050 |
|
11,800 |
|
|
|
|
|
Fees payable to the Company's auditor for other services: |
|
|
|
|
Taxation services |
|
1,325 |
|
1,300 |
|
|
|
|
|
Total fees payable to the Company's auditor |
|
13,375 |
|
13,100 |
6. Income tax
|
|
2019 |
|
2018 |
|
|
£ |
|
£ |
Current tax: |
|
|
|
|
UK corporation tax credit on (losses)/profits of the period |
|
(225,985) |
|
(252,534) |
Adjustments recognised in the current year in relation to the current tax of prior years |
|
(3,920) |
|
3,837 |
|
|
|
|
|
Tax credit to the income statement |
|
(229,905) |
|
(248,697) |
The credit for the year can be reconciled to the accounting loss as follows:
|
|
2019 |
|
2018 |
|
|
£ |
|
£ |
(Loss)/profit before tax |
|
(1,682,370) |
|
(1,718,218) |
|
|
|
|
|
At standard rate of 19% (2017: 19.75%) |
|
(319,650) |
|
(326,461) |
Effects of: |
|
|
|
|
Capital allowances in excess of depreciation |
|
(699) |
|
699 |
Other timing differences |
|
633 |
|
55 |
Unutilised tax losses |
|
192,869 |
|
181,835 |
Losses surrendered for research and development tax credits (less uplift) |
|
126,847 |
|
143,872 |
Research and development tax credits claimed |
|
(225,985) |
|
(252,534) |
Prior year adjustments |
|
(3,920) |
|
3,837 |
|
|
|
|
|
Actual current tax credit in the year |
|
(229,905) |
|
(248,697) |
|
|
|
|
|
7. Loss per share
The calculation of (loss)/profit per share is based on the following data:
Basic (loss)/profit per share:
|
2019 |
|
2018 |
(Loss)/profit on ordinary activities after tax |
|
|
|
Weighted average number of shares for basic loss per share |
2,826,717,857 |
|
2,705,771,933 |
Basic (loss)/profit per share |
(0.05)p |
|
(0.05)p |
As the Group generated a loss for the period, there was no dilutive effect in respect of share options.
8. Cash and cash equivalents
|
|
2019 |
|
2018 |
|
|
£ |
|
£ |
Bank deposit account |
|
908,676 |
|
1,368,687 |
Bank accounts |
|
10,667 |
|
6,588 |
|
|
|
|
|
|
|
919,343 |
|
1,375,275 |
9. Reconciliation of (loss)/profit before income tax to cash generated from operations
|
|
2019 |
|
2018 |
|
|
£ |
|
£ |
(Loss)/profit before income tax |
|
(1,682,370) |
|
(1,718,218) |
Depreciation charges |
|
8,000 |
|
5,333 |
Share-based compensation |
|
115,061 |
|
100,866 |
Share of cost of associate |
|
10,016 |
|
12,264 |
Finance income |
|
(4,085) |
|
(3,745) |
|
|
(1,553,378) |
|
(1,603,500) |
|
|
|
|
|
(Increase)/decrease in trade and other receivables |
|
74,143 |
|
(60,109) |
Increase in trade and other payables |
|
(36,529) |
|
27,921 |
|
|
|
|
|
Cash used in operations |
|
(1,515,764) |
|
(1,635,688) |
10. Dividend
The Directors are not able to recommend payment of a dividend.
11. Copies of the report and accounts
Copies of the report and accounts will be posted to those shareholders that have requested them, will be available from the Company's registered office at 2a Langford Arch, London Road, Pampisford, Cambridge CB22 3FX, and will be placed on the Company's website at http://www.sareum.com/.
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