ANGLE plc

Scaling the business to drive continued momentum

Lighthouse | 6 June 2024

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  • ANGLE management anticipates achieving cashflow breakeven on a monthly basis by end-2025, following completion of its £8.775m gross fundraise (c £8.1m net), alongside its confidence in delivering strong FY24 revenue growth in line with current market expectations (FY24 revenue: £6.45m consensus). This will be driven by product sales growth from the newly established distributor network, expansion of the Pharma Services business, and planned launches of new Parsortix-based products and services. Management has guided to H124 revenue of £1.0m-1.3m, with c £2.5m of revenue (c 40% of consensus FY24e) already contracted to date, and a strong pipeline of opportunities. Three new Pharma Services deals with Eisai (HER2) and AstraZeneca (DDR and androgen receptor), secured in 2024, will contribute to the FY24 topline (May 2024 Update).
  • FY23 revenues grew 120% to £2.2m (FY22: £1.0m), with growth from both products (FY23: £1.4m, +100%) and services (FY23: £0.8m, +67%). Improved gross margins (FY23: 70%; FY22: 59%) reflect the product-service mix. Ongoing cost control and implementation of cost saving initiatives (January 2024 Update) partially offset continued investment to support the utility and commercial uptake of the Parsortix system. Net loss narrowed to £20.1m (FY22: loss of £21.7m), in line with consensus. End-December 2023 cash was £16.2m, with £1.5m of R&D tax credits due (end-FY22: cash of £31.9m).
  • Separately ANGLE raised £8.775m gross through: (1) a £3.75m subscription via the issuance of c 25m ordinary shares (utilising existing allotment authorities); and (2) a c £5m placing (c 33.5m shares) via a “cashbox” structure. The issue price of 15p represents a c 16.7% discount to the closing mid-market price on 4 June; new shares are expected to be admitted to trading on 11 June. There will also be an open offer to qualifying shareholders for up to £2.06m (on the basis of one new share for every 19 shares held), with expected admission around 24 June.
  • The use of proceeds is to support ANGLE’s commercial plan, with £2.8m directed to staff and NGS resources to develop molecular assay content and new applications; £2.2m for commercial business development (salesforce and distributor expansion), product launches/marketing; £1.5m to develop clinical laboratory capability and capacity; and £2m for general working capital, balance sheet strength, and fees associated with the raise.

Trinity Delta view: ANGLE’s start to 2024 has been positive, with the execution of important new Pharma Services contracts with large pharma and securing c £8.8m (gross) in new funding to help widen the adoption of the Parsortix system. The new funds will be directed towards further building the products and service business lines, increasing headcount, and capex to augment laboratory capabilities for molecular applications. These initiatives should help build on the commercial momentum seen in FY23, with management confidence in delivering further revenue growth in FY24 and with cashflow break-even in sight. We suspend our valuation pending the closing of the fundraise; for reference our last published ANGLE valuation was £174m, or 67p/share.

Lighthouse

6 June 2024

Price15.5p
Market Cap£40.4m
Primary exchangeAIM London
SectorHealthcare
Company CodeAGL
Corporate clientYes

Company description

ANGLE is a specialist diagnostics company. Its proprietary Parsortix technology can capture and harvest very rare cells, including CTCs (circulating tumour cells), from a blood sample. The FDA clearance for its clinical use to guide precision cancer care should open up multiple commercial opportunities.

Analysts

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Philippa Gardner
pgardner@trinitydelta.org
+44 (0) 20 3637 5042

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