Interim Results

RNS Number : 4221M

Angle PLC

29 January 2009

 



For Immediate Release

29 January 2009

ANGLE plc

Unaudited Interim Results for the six months ended 31 October 2008

Strong performance from Management services: further reduction in cash burn

ANGLE plc ('ANGLE' or the 'Company'), the international venture management company, today announces its unaudited interim results for the six months ended 31 October 2008.  

Financial Highlights  

• Turnover increased by 37% to £2.5 million (H1 2008: £1.8 million)

• Trading profits from Management services increased by 52% to £0.8 million (H1 2008: £0.5 million)

• Operating costs to manage and develop the portfolio reduced by 52% to £0.5 million (H1 2008: £0.9 million)

• Planned expenditure on controlled investments of £0.7 million (H1 2008: £1.5 million) 

• Fair value of investment portfolio £6.4 million (30 April 2008 £7.3 million); the reduction being £0.9 million relating to the Provexis share price

• Resultant loss before tax £1.3 million (H1 2008: profit £2.8 million)

• Cash balance at 31 October 2008 in line with expectation at £0.4 million (30 April 2008: £1.0 million).  

Operational Highlights  

Group

• Continued growth in Management services business.

• Group is cash generative prior to discretionary expenditure on investment portfolio. 
  
• Long term management contract of the London Development Agency's Knowledge Connect Programme: contract value increased by £1.7m to £5.4m. 

Portfolio

• Investment portfolio increasingly cash independent of ANGLE.  
  

• Aguru Images and Geomerics both secure early revenues.    

• Parsortix achieves a world break-through by isolating foetal cells in maternal blood.

• Provexis equity placing raises £2.5 million.  

• Uncertainty arising over Q1 2010 payment from the sale of Acolyte: fair value held at £1.9 million.

• Novocellus milestone payments and royalties deal: Heads of Terms agreed after the period end.  

Garth Selvey, Chairman, commented:

'ANGLE is continuing to grow its specialist Management services business. It will also retain and manage its investments in a small number of increasingly cash independent companies which ANGLE has founded and developed. The medium term business plan envisages growing trading profits from Management services enhanced by income from dividend, milestone, royalty and capital returns from its investments.' 

Enquiries:

ANGLE plc	01483 685830
Andrew Newland, Chief Executive Ian Griffiths, Finance Director Collins Stewart Europe Limited Mark Connelly, Stewart Wallace Scott Harris Stephen Scott, James O'Shaughnessy, Harry Dee Buchanan Communications Richard Darby	0207 523 8350 0207 653 0030 0207 466 5000

Notes to Editors

Founded in 1994, ANGLE is an international venture management company focusing on the commercialisation of technology and the development of technology-based industry. ANGLE creates, develops and advises technology businesses on its own behalf and for its clients.  

ANGLE's specialist Management services business provides support on a fee-for-service basis to major clients around the world involved in incubation, IP commercialisation, SME innovation and growth and the operation of science & technology parks.

ANGLE also owns a portfolio of companies with high growth potential in the medical and technology sectors in both the UK and the US. These have been developed whilst subsidiaries of ANGLE using its proprietary Progeny® process. ANGLE seeks to retain a substantial shareholding in these companies with a view to ongoing returns from dividend, milestone, royalty and capital returns.    

ANGLE's venture management and technology commercialisation skills are of increasing relevance as global economies focus on regeneration, innovation and value added components to their industries. ANGLE's technology skills in IT and software, medical and life sciences, clean tech and renewable energies are directly relevant to major growth markets of the future and are marketed as specialised Management services.  

ANGLE is listed on AIM (AGL.L); further information can be found on www.ANGLEplc.com 

ANGLE plc

CHAIRMAN'S STATEMENT

Results

Trading profits from Management services increased by 52% to £0.8 million for the half year (H1 2008: £0.5 million). This was offset by planned expenditure on the controlled investments, which was down 56% at £0.7 million (H1 2008: £1.5 million) and by the costs of operating, managing and developing the portfolio, which reduced by 52% to £0.5 million (H1 2008: £0.9 million).  

The share price of Provexis plc, ANGLE's only quoted investment, fell during the half year and this resulted in a write down of £0.9 million. The fair value of the investment portfolio, other than Provexis, was maintained during the half year at £6.3 million. After the Provexis write down, the loss before tax was £1.3 million (H1 2008: profit £2.8 million).

Overheads and investment requirements have been substantially reduced across the business. Consequently, ongoing cash requirements across the Group are now lower and sustainable on an ongoing basis.  

Management services  

ANGLE's Management services business is cash generative and has continued to grow profitably with turnover up 33% at £2.4 million for the half year (H1 2008: £1.8 million).  The business is being developed to deliver continuing growth in the underlying core Management services business after the completion of the Qatar contract this year. 

The Management services business is resilient as a result of its established long term contracts primarily for public sector clients. Moreover there are some signs that ANGLE's customers may seek to establish additional contracts in order to respond to the current economic conditions.  

Portfolio companies 

ANGLE has a portfolio of investments in high growth technology companies in the IT and software and medical and life sciences sectors. ANGLE's approach to investment is to retain large equity stakes in a small number of portfolio companies with high growth potential so as to be able to control and manage these investments to maximise the eventual return to ANGLE shareholders.  As a result, ANGLE has holdings ranging from 47% to 82% in its four high potential return investments.

ANGLE's controlled investments are consolidated so that their fair value is not on the balance sheet and their operating costs are expensed in the results.  

During the half year, the high potential return investments have continued to make progress. Most notably, after the half year end, Novocellus, ANGLE's 82% IVF embryo viability subsidiary announced a corporate deal subject to contract. This has the potential to deliver substantial returns to ANGLE from milestone payments and royalties for many years.  

The adverse market conditions have resulted in a severe lack of venture capital investment on reasonable terms. ANGLE has therefore focused its portfolio companies on revenue generation and corporate deals.

Cashflow

Cash was carefully managed during the half year and at £0.4 million is in line with management expectations. The reduction in cash during the half year was as a result of discretionary investment expenditure on our controlled investments.  

With continuing strong management of overheads, the cash generated by the core Management services business will cover the management of the portfolio to enable value to be realised.      

Outlook for the full financial year

ANGLE is looking to continue growth in its specialist Management services business. It will also retain and manage its investments and holdings in a small number of increasingly cash independent companies which ANGLE has founded and developed.  The medium term business plan envisages growing trading profits from Management services enhanced by returns from dividend, milestone payments, royalties and capital returns from its investments.

ANGLE's venture management and technology commercialisation skills are marketable and of increasing relevance as global economies focus on regeneration, innovation and value added components to their industries. ANGLE's technology skills in IT and software, medical and life sciences, clean tech and renewable energies are directly relevant to major growth markets of the future. 

Garth Selvey

Chairman

28 January 2009

ANGLE plc

OPERATIONS SUMMARY

Introduction

During the half year, ANGLE developed its profitable Management services business and even in difficult market conditions succeeded in progressing its portfolio companies against key milestones. Expenditure on controlled investments was carefully managed within available resources.

Management services

Efforts to grow the Management services business ahead of the planned completion of the Qatar Science & Technology Park contract at the end of March 2009 are progressing.  Turnover was up by 33% at £2.4 million for the half year (H1 2008: £1.8 million) and profits were up by 52% at £0.8 million (H1 2008: £0.5 million).

ANGLE's business is focused on long term management contracts, typically three years or more in duration, and this gives good visibility on future revenues. In the current economic conditions, a number of Governments are seeking to expand their activities in ANGLE's core areas of activity including incubation, innovation, support for SMEs (small and medium sized enterprises) and developing the knowledge-based economy. 

ANGLE is proactively driving its business development efforts in each of its major markets and, notwithstanding increased competition, is confident of securing additional long term contracts. An example of such a contract secured during the half year was the long term management contract of the London Development Agency's Knowledge Connect Programme where the contract value has been increased by £1.7 million to £5.4 million over three years.  

ANGLE was selected following a competitive tendering process on the basis of its experience in delivering similar business support programmes in London, UK wide and internationally. Additionally ANGLE has developed techniques which it was able to demonstrate have secured successful knowledge transfer from academic and research institutions across the World and that have measurable business benefits for a wide range of SMEs.

Portfolio companies

ANGLE's portfolio of investments comprises both controlled and non-controlled investments.

The non-controlled investments are held on the balance sheet at a fair value of £6.4 million (30 April 2008: £7.3 million). The fall in value during the half year was solely in respect of Provexis, a quoted investment in the nutraceuticals / heart health sector whose share price declined notwithstanding its successful £2.5 million fund raising during the half year. The fair value of the other non-controlled investments was maintained during the period.    

The deferred consideration due in respect of the sale of the investment in Acolyte Biomedica (medical diagnostics / MRSA detection) is subject to dispute between the former Acolyte shareholders and the purchaser. Legal advice has been received that the former Acolyte shareholders have a strong case and the fair value of this receivable has been maintained at £1.9 million.  ANGLE does not believe that it will be exposed to any significant legal costs in this matter. 

Geomerics (computer games middleware), in which ANGLE holds 47%, is benefitting from the robust performance of the computer games market and is building a strong pipeline of customers for its Enlighten product.

Controlled investments are consolidated as subsidiaries and not shown at fair value on the balance sheet. During the half year, a further £0.7 million was invested in these companies and expensed.

Aguru Images (digital imaging), has secured and successfully completed its first commercial sale with a major film maker in Los Angeles. Worth over $150,000, the contract utilised two out of three of Aguru's proprietary devices to measure faces, materials and objects for several visual effects shots on a major feature film. The digital imagery developed in this way allows the creation of extremely realistic special effects as well as improvement in the production efficiency and reduction in costs.

Parsortix (medical diagnostics / foetal cell capture) has achieved a world break-through by isolating foetal cells in maternal blood. Pregnant women have a very small number of their baby's cells circulating in their blood. There are thought to be at most one foetal cell in 500 million maternal cells. Parsortix has developed a patent protected micro fluidic device which, when 1.5 ml of the mother's blood is flowed through the device, can for the first time capture these foetal cells for analysis.  A number of multinationals have already expressed interest in Parsortix and ANGLE is now focused on completing development of the product and securing regulatory approval.  

Progress in the second half

Novocellus (medical diagnostics IVF embryo viability) has agreed Heads of Terms, which remain subject to contract, for MediCult a/s (OSE: MEC), a leader in Assisted Reproductive Technologies (ART) to acquire its patented, non-invasive embryo selection technology, EmbryoSure™.  MediCult are ideally placed to complete the final trials and market EmbryoSure. MediCult's leading market position in global IVF gives Novocellus access to the largest IVF customer base in the world for sale of the EmbryoSure product. ANGLE has an 82% holding in Novocellus and we believe that the success based milestone and royalty arrangements provide ANGLE with the potential for exceptional returns on its investment.

ANGLE is considering corporate deals for other companies in its portfolio and will provide an update to shareholders as appropriate. In the future the Company may benefit from a range of cashflows including profits from the Management services business, capital gains from the sale of investments, dividends from trading investments, and returns from milestone payments from corporate partners and ongoing and potentially substantial royalty payments. 

  ANGLE plc

CONSOLIDATED INTERIM INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 OCTOBER 2008

	Note	Six months ended		Year ended
		31 October	31 October	30 April
		2008	2007	2008
		(Unaudited)	(Unaudited)	(Audited)
		£	£	£
Turnover	3	2,523,653	1,836,634	3,873,477
Change in fair value	6	(912,039)	4,837,686	3,911,031
Operating costs
Management services		(1,665,111)	(1,324,983)	(2,732,866)
Ventures		(451,511)	(938,097)	(1,579,409)
Controlled investments		(657,715)	(1,487,857)	(2,254,897)
Share based payments		(106,244)	(156,593)	(258,751)
Restructuring charges		-	-	130,359
		_____________	_____________	_____________
		(2,880,581)	(3,907,530)	(6,695,564)
Operating profit / (loss)		(1,268,967)	2,766,790	1,088,944
Finance income		12,267	32,870	49,524
Finance costs		2,785	(3,571)	(17,751)
		_____________	_____________	_____________
Net finance income		15,052	29,299	31,773
		_____________	_____________	_____________
Profit / (loss) before tax		(1,253,915)	2,796,089	1,120,717
Profit/ (loss) before Controlled investments and tax		(641,827)	4,329,620	3,416,059
Controlled investments		(612,088)	(1,533,531)	(2,295,342)
Tax	4	(118,942)	68,841	89,199
		_____________	_____________	_____________
Profit / (loss) for the period		(1,372,857)	2,864,930	1,209,916
		===========	===========	===========
Earnings / (loss) per share	5
Basic and Diluted (pence per share)		(5.13)	10.72	4.52

ANGLE plc

CONSOLIDATED BALANCE SHEET

AS AT 31 OCTOBER 2008

	Note	31 October	31 October	30 April
		2008	2007	2008
		(Unaudited)	(Unaudited)	(Audited)
		£	£	£
ASSETS
Non-current assets
Non-controlled investments	6	4,373,504	3,991,667	4,373,504
Other receivables	6	1,902,724	1,902,724	1,902,724
Property, plant and equipment		66,470	91,410	71,723
Intangible assets		194,126	270,330	191,529
		_­______________	_______________	_______________
Total non-current assets		6,536,824	6,256,131	6,539,480
Current assets
Non-controlled investments	6	130,292	2,490,099	1,042,331
Trade and other receivables		677,128	604,235	628,025
Cash and cash equivalents		397,685	1,068,702	970,197
		_______________	_______________	_______________
Total current assets		1,205,105	4,163,036	2,640,553
		_______________	_______________	______________
Total assets		7,741,929	10,419,167	9,180,033
		==============	==============	=============
EQUITY AND LIABILITIES
Equity
Issued capital		2,713,293	2,713,293	2,713,293
Share premium account		13,701,935	13,701,935	13,701,935
Share based payment reserve		1,628,673	1,788,458	1,522,429
Other reserves		2,553,356	2,553,356	2,553,356
Translation reserve		(342,570)	(193,478)	(297,311)
Retained earnings		(13,945,053)	(11,452,438)	(12,617,357)
ESOT shares		(355,453)	(370,000)	(355,453)
		_______________	_______________	_______________
Total equity		5,954,181	8,741,126	7,220,892
		_______________	_____________	_____________
Liabilities
Non-current liabilities
Controlled investments - convertible loans		185,678	72,202	125,976
		_____________	_____________	_____________
Total non-current liabilities		185,678	72,202	125,976
Current liabilities
Trade and other payables		1,473,111	1,592,158	1,828,605
Obligations under finance leases		-	13,681	4,560
Taxation		128,959	-	-
		_____________	_____________	_____________
Total current liabilities		1,602,070	1,605,839	1,833,165
		_____________	_____________	_____________
Total liabilities		1,787,748	1,678,041	1,959,141
		_____________	_____________	_____________
Total equity and liabilities		7,741,929	10,419,167	9,180,033
		==================	==================	==================

  ANGLE plc

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 OCTOBER 2008

	Six months ended		Year ended
	31 October	31 October	30 April
	2008	2007	2008
	(Unaudited)	(Unaudited)	(Audited)
	£	£	£
Operating activities
Operating profit / (loss)	(1,268,967)	2,766,790	1,088,944
Depreciation of property, plant and equipment	21,019	28,666	49,518
Amortisation of intangible assets	814	90,189	92,574
Exchange differences	(16,407)	(10,477)	(6,551)
(Increase) / decrease in trade and other receivables	(41,568)	125,890	132,696
Increase / (decrease) in trade and other payables	(356,203)	(296,821)	(84,708)
Income tax received	44,960	118,882	118,882
Change in fair value of Non-controlled investments	912,039	(4,837,686)	(3,911,031)
Share based payments	106,244	156,593	258,751
	_____________	_____________	_____________
Net cash from / (used in) operating activities	(598,069)	(1,857,974)	(2,260,925)
Investing activities
Purchase of property, plant and equipment	(8,390)	(6,004)	(19,528)
Disposal of property, plant and equipment	-	776	1,485
Purchase of intangible assets	(985)	(36,252)	(28,722)
Provision of convertible loans	-	(47,000)	(47,000)
Proceeds from sale of investments	-	360,848	538,692
Deemed disposal of subsidiaries	-	-	(20,260)
Purchase of ESOT shares	-	-	-
Interest paid	(2,012)	(2,025)	(2,717)
Interest received	13,417	42,083	49,458
	_____________	_____________	_____________
Net cash from / (used in) investing activities	2,030	312,426	471,408
Financing activities
Capital elements of finance lease contracts	(4,560)	(9,120)	(18,242)
Proceeds from issue of convertible loans	28,087	72,202	226,788
	_____________	_____________	_____________
Net cash from / (used in) financing activities	23,527	63,082	208,546
Net increase / (decrease) in cash and cash equivalents	(572,512)	(1,482,466)	(1,580,971)
Cash and cash equivalents at start of period	970,197	2,551,168	2,551,168
	_____________	_____________	_____________
Cash and cash equivalents at end of period	397,685	1,068,702	970,197
	===========	===========	===========

  ANGLE plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 OCTOBER 2008

Attributable to equity holders of the Group

			Share based
	Issued	Share	payment	Other	Translation	Retained	ESOT	Total
	capital	premium	reserve	reserves	reserve	earnings	shares	Equity
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	£	£	£	£	£	£	£	£
At 1 May 2007	2,713,293	13,701,935	1,713,289	2,553,356	(193,813)	(14,420,638)	(370,000)	5,697,422
For the period to 31 October 2007
Consolidated profit / (loss)					335	2,864,930		2,865,265
Share based payments			178,439					178,439
Deemed disposal of subsidiaries			(103,270)			103,270		-
	___ ______	___ _______	___ ______	___ ______	___ ______	___ ________	___ ______	_____ _____
At 31 October 2007	2,713,293	13,701,935	1,788,458	2,553,356	(193,478)	(11,452,438)	(370,000)	8,741,126
For the period to 30 April 2008
Consolidated profit / (loss)					(103,833)	(1,655,014)		(1,758,847)
Share based payments			110,046					110,046
Released on forfeiture / lapse			(145,391)			145,391		-
Utilised on share schemes							14,547	14,547
Deemed disposal of subsidiaries			(230,684)			230,684		-
Partial disposal of subsidiaries						114,020		114,020
	___ ______	___ _______	___ ______	___ ______	___ ______	___ ________	___ ______	___ _______
At 1 May 2008	2,713,293	13,701,935	1,522,429	2,553,356	(297,311)	(12,617,357)	(355,453)	7,220,892
For the period to 31 October 2008
Consolidated profit / (loss)					(121,618)	(1,372,857)		(1,494,475)
Share based payments			106,244		76,359			182,603
Partial disposal of subsidiaries						45,161		45,161
	___ ______	___ _______	___ ______	___ ______	___ ______	___ ________	___ ______	___ _______
At 31 October 2008	2,713,293	13,701,935	1,628,673	2,553,356	(342,570)	(13,945,053)	(355,453)	5,954,181
	==========	==========	==========	==========	=========	===========	==========	==========

Share based payment reserve

The share based payment reserve account is used for the corresponding entry to the share based payments charged through: a) the income statement for staff incentive arrangements in the Group; b) the income statement for staff incentive arrangements in the controlled investments; and c) the balance sheet for acquired intangible assets in the controlled investments comprising intellectual property (IP).  These components are separately identified in the table below.

Transfers are made from this reserve to retained earnings as the related share options are exercised, lapse or expire or as a Controlled investment becomes non-controlled.

Translation reserve

The translation reserve account comprises cumulative exchange differences arising on consolidation from the translation of the financial statements of international operations. Under IFRS this is separated from retained earnings.

ESOT shares

These relate to shares purchased by the ANGLE Employee Share Ownership Trust and used to assist in meeting the obligations under employee remuneration schemes.

Share based payments reserve		Controlled	Controlled
	Group	investments	investments
	employees	employees	IP	Total
	£	£	£	£
At 1 May 2007	1,260,154	73,463	379,672	1,713,289
Acquired intellectual property			27,014	27,014
Deemed disposal of subsidiaries	-	(21,357)	(87,081)	(108,438)
Charge for the period	113,816	42,777	-	156,593
	_________	_________	_________	_________
At 31 October 2007	1,373,970	94,883	319,605	1,788,458
Acquired intellectual property	-	-	1,333	1,333
Deemed disposal of subsidiaries	-	(48,985)	(175,144)	(224,129)
Charge for the period	99,943	2,215	-	102,158
Release on forfeiture / lapse	(145,391)	-	-	(145,391)
	_________	_________	_________	_________
At 1 May 2008	1,328,522	48,113	145,794	1,522,429
Charge for the period	92,946	13,298	-	106,244
	_________	_________	_________	_________
At 31 October 2008	1,421,468	61,411	145,794	1,628,673
	==========	==========	=========	=========

  ANGLE plc

NOTES TO THE INTERIM FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 OCTOBER 2008

1.      Basis of preparation and accounting policies

The Condensed Interim Financial Statements in this document do not constitute statutory financial statements for the purposes of s434 of the Companies Act 2006. The Statutory Financial Statements for the year ended 30 April 2008 ('Report and Accounts 2008') have been filed with the Registrar of Companies. The auditor's report on those Financial Statements, which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), was unqualified and did not contain statements under s237(2) or s237(3) of the Companies Act 1985.

These Condensed Interim Financial Statements are the unaudited interim consolidated financial statements (the 'Condensed Interim Financial Statements') of ANGLE plc, a company incorporated in Great Britain and registered in England and Wales, and its subsidiaries (together referred to as the 'Group') for the six month period ended 31 October 2008 (the 'interim period').  

The Condensed Interim Financial Statements have been voluntarily prepared in accordance with International Accounting Standard 34 Interim Financial Reporting ('IAS 34'), as adopted by the EU, and on the basis of the accounting policies set out in the Report and Accounts 2008. The presentation of the Condensed Interim Financial Statements is consistent with the Report and Accounts 2008. Where necessary, comparative information has been reclassified or expanded from the previously reported Condensed Interim Financial Statements to take into account any presentational changes made in the Report and Accounts 2008. 

The Condensed Interim Financial Statements were approved by the Board and authorised for issue on 28 January 2009.

Going concern

The Directors have reviewed the projections for the forthcoming 12 month period from the date of approval of these Interim Financial Statements and based on the level of existing cash, projected income and expenditure, the Directors are satisfied that the Company and Group have adequate resources to continue in business for the foreseeable future. Accordingly the going concern basis has been used in preparing the Interim Financial Statements.

Critical accounting estimates and judgements

The preparation of the Interim Financial Statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates and assumptions are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities relate to the valuation of unlisted investments held at fair value in accordance with IAS39 and on the basis of the accounting policies in the Report and Accounts 2008, and to the fair value of other receivables - see Note 6.

 2    Summary segmental analysis

The Group operates in one principal area of activity - technology wealth creation through the commercialisation of intellectual property and the development of technology industry.

The primary business segments are:

• Management services - provision of management services to clients including research organisations, corporate and governmental organisations on a fee-for-service basis. This business segment provides a platform for the Ventures activities.

• Ventures - activities to establish, develop and create value in technology companies. The Group uses a 
  proprietary Progeny® process to develop these companies, which are referred to as Progeny® companies. ANGLE's unique business model involves ANGLE founding new companies which it controls during the critical early stages of development, before securing third party funding.  

  Under IFRS, the accounting for Progeny® companies divides into controlled investments and non-controlled investments.

  -    Controlled investments - Progeny® companies where the Group has control, typically as a result of owning 
        in excess of 50% of the equity. These are consolidated and the Group's investment costs are expensed in 
        the Income Statement.

  -    Non-controlled investments - Progeny® companies where the Group does not have control. These 
        investments are held on the Balance Sheet at fair value, with changes in fair value passing through the 
        Income Statement.

The nature of these operations is significantly different. The primary format and segmentation by class of business has been provided on the face of the Consolidated Interim Income Statement. 

3      Turnover

The breakdown of turnover by business segment is set out below:  

	Six months ended		Year ended
	31 October	31 October	30 April
	2008	2007	2008
	(Unaudited)	(Unaudited)	(Audited)
	£	£	£
Turnover
Management services	2,431,491	1,828,877	3,834,543
Ventures	26,222	7,757	26,727
Controlled investments	65,940	-	12,207
	___________	___________	___________
	2,523,653	1,836,634	3,873,477
	==========	==========	==========

Turnover from Management services represents fees received from clients. Turnover from Ventures represents fees received from non-controlled investments for accounting and other services provided by the Company until those companies take those activities in-house. Turnover from Controlled investments represents the turnover of those businesses, which is consolidated.  

4    Tax

The Group is eligible for the substantial shareholdings relief UK corporation tax exemption. This results in the gain from any disposals of UK investments where the Group has an equity stake greater than 10%, subject to certain other tests, being free of corporation tax. Tax is therefore based on the profits in the Management services business as relieved by losses incurred in the establishment and development of new Ventures. Loss relief may not absorb the tax in relation to all of the profits and where this occurs tax is provided on the basis of the estimated effective tax rate for the full year.

Controlled investments undertake research and development activities. In the UK these activities qualify for tax relief and result in tax credits.

5    Earnings / (loss) per share

The basic and fully diluted earnings / (loss) per share is calculated on an after tax loss of £1.4 million (6 months to 31 October 2007: profit £2.9 million, year to 30 April 2008: profit £1.2 million).

The basic and fully diluted earnings / (loss) per share are based on 26,773,382 weighted average ordinary 10p shares (6 months to 31 October 2007:  26,721,430 - restated for the deduction of ESOT shares not previously taken into account; year to 30 April 2008: 26,745,485). Share options are non-dilutive for the period.

6    Non-controlled investments and Other receivables

    The Group's investment portfolio comprises investments in Progeny® companies.  

    Where the Group has control of a Progeny® company (typically owning more than 50% of the equity), 
    these are Controlled investments and are consolidated as subsidiaries. At the point control no longer 
    exists, a deemed profit arises and the Non-controlled investment is held at fair value on 
    the Consolidated Balance Sheet In the six months to 31 October 2008 net costs before   
    taxation relating to Controlled investments of £0.6 million (H1 2008: £1.5 million) were charged to 
    the Income Statement.  

    Where the Group does not control a Progeny® company (typically owning less than 50% of the 
    equity), these are defined as Non-controlled investments and held on the balance sheet at fair value, 
    as set out in the table below:

	Non-current assets	Current assets	Total - Non controlled
	Unquoted	Quoted	investments
	(Unaudited)	(Unaudited)	(Unaudited)
	£	£	£
At 1 May 2007	-	1,812,197	1,812,197
Investments	89,461	-	89,461
Disposals	-	(360,848)	(360,848)
Fair value gain on deemed disposal of subsidiary	3,991,667	-	3,991,667
Change in fair value	(89,461)	1,038,750	949,289
	____________	____________	____________
At 31 October 2007	3,991,667	2,490,099	6,481,766
Disposals	-	(177,844)	(177,844)
Fair value gain on deemed disposal of subsidiary	381,837	-	381,837
Change in fair value	-	(1,269,924)	(1,269,924)
	____________	____________	____________
At 1 May 2008	4,373,504	1,042,331	5,415,835
Change in fair value	-	(912,039)	(912,039)
	____________	____________	____________
At 31 October 2008	4,373,504	130,292	4,503,796
	===========	===========	===========

ANGLE's holding in Provexis plc was valued at £0.3 million at market price on 28 January 2009.

	6 months ended	31 October
	2008	2007
	£	£
Deemed loss from net assets no longer consolidated	-	(103,270)
Fair value gain on deemed disposal of subsidiary	-	3,991,667
Change in fair value of investments	(912,039)	949,289
Change in fair value	(912,039)	4,837,686
	=======	=======

    Other receivables

ANGLE's Progeny® company Acolyte Biomedica was sold in February 2007. ANGLE's share of the proceeds was an initial £0.9 million in cash and an earn-out of up to £4.7 million receivable early in 2010. A fair value of £1.9 million of this potential £4.7 million earn-out was held on ANGLE's balance sheet under the 'Other receivables' category as at 30 April 2008 and 31 October 2007.  

During the period a dispute has arisen between the former Acolyte shareholders and the purchaser.  The Company has received legal advice that there is a strong case and that it is highly probable the action will succeed.  The matter is currently being pursued by the major shareholder with the other shareholders reserving their rights; therefore ANGLE has limited exposure to any litigation costs at this stage.

Based on the currently available information and legal advice, the Directors believe that there will eventually be a significant return from this investment. In view of the dispute, it is difficult to form a reliable estimate of the fair value of this investment. In present circumstances, the Directors believe that it is appropriate to hold the asset at its current fair value, but note that the value may be revised in the future as further information becomes available.

7    Shareholder communications

The announcement is being sent to all shareholders on the register on 29 January 2009. Copies of this announcement are posted on the Company's website www.ANGLEplc.com and are available from

Buchanan Communications and the Company's registered office: 3 Frederick Sanger Road, Surrey 

Research Park, Guildford, GU2 7YD.

 

END

 

 

IR ILFVTLIITFIA