ANGLE plc (AIM: AGL OTCQX: ANPCY), a world-leading liquid biopsy company with innovative circulating tumour cell (CTC) diagnostic solutions for use in research, drug development and clinical oncology, is today providing a trading and business update.

Trading update - Strong growth in sales

The Company expects revenue recognised for 2023 will be c. GBP2.2 million, which is an increase of 120% over revenue achieved in 2022 but below current market consensus of c. GBP3.0 million. New sales secured in 2023 are expected to be c. GBP3.3 million however revenue recognition for some of these sales will fall into the 2024 financial year. Gross margin for H2 is expected to be higher than H1 reflecting the product-service mix and, together with tight cost control, to result in the cash position at 2023 year end being in line with consensus at c. GBP15 million.

Streamlining of the Services business outlined below is anticipated to result in c. GBP0.5 million of non-cash impairments and c. GBP0.7 million of one-off cash costs in 2023 resulting in an operating loss for the year of c. GBP21 million, which remains in line with consensus despite the additional charges. The streamlining is expected to deliver cost savings of c. GBP3 million per annum in 2024 resulting in the extension of the cash runway into Q2 2025.

Revenue for the Products business has continued to grow in line with our expectations and will be further supported by the newly established distributor network as well as new product launches. The Pharma Services business has continued to gain commercial traction although the slowdown in biopharma spending has led to an elongation of the sales process with some sales falling away. Despite this, progress is being made towards securing retained relationships with large pharma customers and launching additional Parsortix based tests to drive increased sales.

Business update - Streamlining services business extends cash runway

With the expected growth in molecular solutions requiring investment and considering ongoing adverse market conditions, we have made the decision to streamline our Services operations by closing the US clinical laboratory and focusing on a single UK-based centre of excellence. We have developed solutions for sample stability so that the physical location of the laboratory does not limit its capability to service customers across different geographies. The streamlining will enable us to focus our investment in multiple molecular platforms for different applications in a single location without duplicating these significant costs.

The extension of our molecular capability across multiple molecular platforms will also support product sales to the customers of the installed base of these molecular platforms as it will drive the generation of a stream of clinical evidence of the value of such analysis, the first of which we expect to publish before the year end.

ANGLE Founder and Chief Executive, Andrew Newland, commented: 'The build-up of revenues has been slower than hoped but is moving in the right direction and the Company expects strong revenue growth year-on-year. The cost savings from the streamlining of our clinical services business will now extend the forecast cash runway into Q2 2025 and we look forward to progressing the planned launches of new products and services to drive widespread adoption of the Company's Parsortix system to support precision medicine in cancer.'

Contact:

Andrew Newland

Tel: +44 (0) 1483 343434

Toby Flaux

Tel: +44 (0) 20 3207 7800

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