4basebio Plc - Final Results and Notice of AGM
("4basebio", the "Company" or the “Group”)
Final Results and Notice of AGM
The Board of 4basebio plc is pleased to report the results for the financial year ended
The annual report and accounts together with a notice of the Company’s annual general meeting, which is to be held on
The annual general meeting will be followed by a presentation from the Company through the
Highlights
-- First sale of HQ synthetic DNA batch -- First order for GMP synthetic DNA -- Six novel patent filings -- Delivered over 25 customer projects during 2023
Overview
4basebio plc is a
4basebio is a technology company, which is a market leader in the development and commercialisation of large scale manufacture of synthetic DNA as well as nanoparticle delivery solutions. The Group continues to expand its commercial platform. Its customers are active in the cell & gene therapy and vaccine markets, across mRNA therapeutics and vaccines, AAV, gene editing and DNA vaccines.
The Group‘s technology platforms offer its customers application specific product and performance benefits, with its synthetic DNA also benefitting from much faster turnaround times relative to incumbent plasmid DNA. It also continues to invest in research and development activities to further develop its platforms and expand its product offering, particularly focused on different DNA modalities including single stranded and circular synthetic DNA constructs.
Dr
Further evidencing the Group’s accelerating commercial progress, 4basebio recently announced its client,
4basebio is now on the cusp of strong commercial growth and 2024 promises to be a very exciting year.”
For further enquiries, please contact:
4basebio plc +44 (0)12 2396 7943Heikki Lanckriet , CEO +44 (0)20 7213 0880Cairn Financial Advisers LLP (Nominated Adviser)Jo Turner /Sandy Jamieson Cavendish Capital Markets Limited (Broker)Geoff Nash /Charlie Beeson /Nigel Birks +44 (0)20 7220 0500Lionsgate Communications (Media Enquiries)Jonathan Charles +44 (0)77 9189 2509
Chairman’s statement
Performance
During the course of 2023, 4basebio continued to scale up its commercial activities alongside ongoing product innovation. The emphasis during the year was on its synthetic DNA platform, with the Group recognising revenue on approximately 25 customer projects including the sale of its first High Quality DNA; it also took receipt of orders for GMP grade product due for delivery in 2024.
The manufacture and sale of GMP (“Good Manufacturing Practice”) grade synthetic DNA is a significant milestone for 4basebio with the receipt of GMP orders an important step. While the Group’s journey to GMP has not been without its challenges, it is pleasing to reflect on the significant progress made. Evidence of the Group’s development also came in the form of its client,
The Group also continued to develop its non-viral delivery platform, Hermes™. As announced during the year, 4basebio received grant funding from the
Thermo-stability was an important consideration in the use of mRNA vaccines used during the Covid-19 epidemic. Those vaccines required -80C freezer storage to remain effective, presenting significant logistical challenges and cost considerations in the distribution of vaccines for pandemic response.
Preliminary findings demonstrate the Hermes™ product offers superior particle stability at higher temperatures, a commercially significant consideration in the context of meeting future vaccine demands, particularly in countries where cold supply chain logistics are challenging.
Alongside these commercial developments, the Group continues to invest in its intellectual property. During 2023 and early 2024, six new patent applications were filed and this is expected to continue. The Group now has 17 patent families around its DNA platform and a further four patent families centred on its Hermes™ technology.
It is important that the Group acts to protect its intellectual property. As a result it has pursued legal action in
With the objectives outlined above, the Group continued to invest during 2023 with a resultant net loss for the year of £7.7 million.
Strengthening the Group’s commercial, client onboarding and operations teams was an important focus in the year, with overall headcount of 84 at year end.
The Board is pleased with the commercial progress made during 2023 and believes 4basebio is well placed to grow revenues strongly in 2024. Nevertheless, 4basebio will remain loss making during 2024 and the Group will utilise its loan facility with 2Invest AG, a major shareholder and former parent company, to fund its activities.
Strategy
4basebio’s principal objective is to become the leading provider of synthetic DNA products and non-viral delivery technology for the cell & gene therapy and vaccines markets. The Board believes the Group is well placed to do this, with a combination of a uniquely flexible synthetic DNA technology alongside its nanoparticle platform, a key competitive differentiator.
The flexibility in its DNA platform has facilitated the development of application specific products, which offer valuable performance benefits over alternative solutions. The overall objective is to continue developing and commercialising the most efficient and highest performant DNA products for each application.
An excellent example of this is supply of DNA for mRNA production; for this market, 4basebio manufactures and supplies the requisite linearised open ended DNA, its opDNA™, required for in vitro transcription, the process of converting DNA into mRNA. This compares highly favourably with other products which require a further step of linearisation (in the case of plasmid DNA) or de-ending (in the case of alternative synthetic DNA).
Alongside this, the Group has also focused on developing internal application relevant expertise, enabling the preparation and provision of data packages for prospective clients highlighting the benefits of 4basebio products in their specific field of application.
As a result, the Group has generated a breadth of highly relevant commercial data which it can share with customers. It also means that 4basebio understands how its products will perform in the hands of its customers, a key consideration in meeting customer expectations.
The Group continues to focus on working with each customer along their journey from research use through high quality batches and eventual GMP grade synthetic DNA. As the customer progresses, so does the requirement for both higher quality and quantity of product. As customers advance through their therapeutic development programs, the Group expects significant revenues to be generated from these projects.
Share Price
The share price opened the year at
At year end, approximately 70% of the Company’s shares were closely held between the Company’s largest shareholders and Board directors. Whilst the Board has limited visibility on holdings below the reporting threshold of 3%, given shares are typically held in nominee accounts, the Board believes that a significant portion of the remaining shares is owned by long term shareholders.
People and Culture
As an innovative life sciences Group, 4basebio is science led, with over three-quarters of its workforce holding scientific degrees. This has facilitated the rapid development of the Group’s technology platforms, as well as commercial and manufacturing teams.
The Group strives to maintain an open, informal and supportive organisational culture. With the growth in headcount, maintaining the Group’s core values becomes ever more important and is a focus of staff at all levels of the organisation.
The Board would like to thank all staff for their commitment and dedication over the past year which has been instrumental in 4basebio’s continued progress.
Chairman
Consolidated statement of profit or loss and other comprehensive income
for the year ended
[in £‘000] 2023 2022 Revenues 506 268 Cost of goods sold (166) (29) Gross profit 340 239 Sales and marketing expenses (586) (245) Administration expenses (3,250) (2,711) Operation expenses (1,417) (928) Research and non-capitalised development expenses (3,560) (2,081) Other operating expenses (85) (181) Other operating income 506 67 Loss from operations (8,052) (5,840) Finance expense (302) (89) Financial result (302) (89) Loss before tax (8,354) (5,929) Income tax income / (expense) 689 779 Loss for the year (7,665) (5,150) Loss per share -- Basic and diluted (in £/share) (0.62) (0.42) Items that may be reclassified to the income statement in subsequent periods Exchange differences on translation of foreign operations (172) 447 Total comprehensive income (7,837) (4,703)
All of the loss for the year is from continuing operations.
Consolidated statement of financial position
[in £’000] Note 2023 2022 Assets Intangible assets 13 2,669 2,124 Property, plant and equipment 15 4,197 3,633 Other non-current assets 19 34 35 Non-current assets 6,900 5,792 Inventories 17 332 133 Trade receivables 18 107 54 Other current assets 19 1,514 1,359 Cash and cash equivalents 20 3,069 4,351 Current assets 5,022 5,897 Total assets 11,922 11,689 Liabilities Financial liabilities 22 (392) (415) Trade payables (694) (490) Other current liabilities 23 (1,191) (613) Current liabilities (2,277) (1,518) Financial liabilities 22 (10,065) (2,935) Other liabilities 23 (72) (116) Non-current liabilities (10,137) (3,051) Total liabilities (12,414) (4,569) Net (liabilities) / assets (492) 7,120 Share capital 21 11,132 11,130 Share premium 21 706 706 Merger reserve 21 688 688 Capital reserve 21 13,530 13,307 Foreign exchange reserve 21 (158) 14 Profit and loss reserve 21 (26,390) (18,725) Total Equity (492) 7,120
Consolidated statement of changes in equity
for the year ended
Share Share Merger Capital Foreign Profit and [in £‘000] capital premium reserve reserve exchange loss reserve Total equity reserve Balance at 1 11,130 706 688 13,307 14 (18,725) 7,120 January 2023 Loss for the - - - - - (7,665) (7,665) year Shares issued in 2 - - - - - 2 period Foreign Exchange difference arising on - - - - (172) - (172) translation of 4basebio S.L.U. Share based - - - 223 - - 223 payments Balance at 31 December 11,132 706 688 13,530 (158) (26,390) (492) 2023
Share Share Merger Capital Foreign Profit and [in £‘000] capital premium reserve reserve exchange loss reserve Total equity reserve Balance at 1 11,130 706 688 13,179 (433) (13,575) 11,695 January 2022 Loss for the - - - - - (5,150) (5,150) year Foreign Exchange difference arising on - - - - 447 - 447 translation of 4basebio S.L.U. Share based - - - 128 - - 128 payments Balance at 31 December 11,130 706 688 13,307 14 (18,725) 7,120 2022
Consolidated statement of cash flows
for the year ended
[in £’000] 2023 2022 Net loss for the period (7,665) (5,150) Adjustments to reconcile net loss for the period to net cashflows Income taxes (689) (779) Interest charge 302 89 Depreciation of property, plant and equipment 676 404 Amortisation and impairment of intangible assets 4 33 27 Other non-cash items 11 220 136 Working capital changes: (Increase)/decrease in trade receivables and other current (109) 140 assets Increase/(decrease) in trade payables and other current 695 (2) liabilities (Increase)/decrease in inventories (202) 30 Tax receipt 561 401 Net Cash flows from operating activities (6,178) (4,704) Investments in property, plant and equipment (871) (1,155) Investments in capitalised development and intangible assets (619) (786) Cash flows from investing activities (1,490) (1,941) Net receipt/(payment) of loans 6,584 1,412 Shares issued 2 - Interest paid (67) (93) Capital lease payments (94) (75) Cash flows from financing activities 6,425 1,244 Net change in cash and cash equivalents (1,243) (5,401) Exchange differences (39) 166 Cash and cash equivalents at the beginning of the period 4,351 9,586 Cash and cash equivalents at the end of the period 3,069 4,351
Notes to the financial statements
1. General
4basebio plc (the “Company” or “4basebio”) is registered in
The Company is domiciled in
The Company trades on London Stock Exchange’s AIM market, having been admitted on
The consolidated financial statements of 4basebio plc and its subsidiaries for the year ended
2. Basis of preparation
The consolidated financial statements of 4basebio
The consolidated financial statements comprise the results of 4basebio plc, 4basebio S.L.U., 4basebio
The above summary has been extracted from the report and financial statements and, accordingly, references to notes and page numbers may be incorrect. Shareholders are advised to read the full version of the report and financial statements which will be available from the Company’s website.
3. Earnings per share
2023 2022 Numerator[in £‘000] Result for the period (7,665) (5,150) Denominator[number of shares] Weighted average number of registered shares in circulation (ordinary shares) for calculating the 12,319,270 12,317,473 undiluted earnings per share Basic and diluted earnings per share (£) (0.62) (0.42)
The calculation of the basic and diluted earnings per share for continuing operations was based on the weighted average number of shares as determined above. The numerator is defined as result after tax from continuing operations. The average number of share options outstanding during the period was 653,771 (2022: 642,878) which have not been included in the calculation of the diluted Earnings per share because they would be anti-dilutive since the business is loss making.
4. Approval of the financial statements
The financial statements were approved by the Board of directors and authorised for issue on
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