Interim Results
Angle PLC
20 January 2005
For Immediate Release 20 January 2005
ANGLE plc
('ANGLE' or the 'Company')
Interim results for the six months ended 31 October 2004
ANGLE plc, the intellectual property and technology commercialisation company,
today announces its interim results for the six months ended 31 October 2004.
Financial Highlights
• Turnover increased 53% to £1.73 million (2003: £1.13 million)
• Operating profit on Consulting and Management activities increased by 381%
to £0.29 million (2003: £0.06 million)
• Expenditure to establish and develop new Ventures increased substantially
to £0.84 million (2003: £0.17 million)
• Loss before tax increased to £1.37 million (2003: profit £0.01 million)
reflecting planned expenditure on new Ventures development and provision
for diminution in value of current asset investments of £1.03 million.
• Earnings per share loss 8.18p (2003: loss 0.03p)
• Cash at bank at half year end £7.25 million (2003: £2,907)
• Consulting and Management businesses entered second half year with strong
order book of £2.76 million (2003: £1.25 million).
Operational Highlights
• Acolyte Biomedica prepares for MRSA product launch in May 2005. Government
emphasises need for rapid detection in fight against MRSA. Independent
hospital analysis of product highly favourable.
• NeuroTargets completes collaborative deal with BioFocus plc and appoints
new CEO to drive commercialisation of proprietary drug targets. Additional
funding secured to support BioFocus collaboration.
• Provexis completes product development and establishes relationship with
Nutrinnovator plc. Clinical trials demonstrate efficacy of CardioFlow(R)
for cardiovascular health and suggest control of cholesterol an additional
benefit. Launch of CardioFlow(R) in the form of a juice drink planned for
Summer 2005.
• Novocellus IVF diagnostic company founded to commercialise revolutionary
technology for non-invasive testing of the viability of IVF embryos.
• New Heads of Ventures appointed in the UK and US and teams strengthened
with new recruits.
• Negotiations in progress with major technology corporates, research
establishments and universities for commercialisation of their intellectual
property and several other potential Progeny(R) Companies under evaluation.
Hance Fullerton, Chairman, commented:
'ANGLE has made good progress in the growth of its business during the first
half of the year. Growth in the Consulting and Management businesses has been
matched by development of the Ventures business. Our Ventures teams are now
established in the UK and US, relationships have been further developed with
leading technology organisations and progress made in evaluating and developing
new venture propositions. Following the successful establishment of Novocellus
in the first half of the year, we expect to announce the establishment of
further Progeny(R) Companies in the second half. We are also making progress
towards realising value for shareholders from our existing portfolio of Progeny
(R) Companies.'
Enquiries:
ANGLE plc 01483 295830
Andrew Newland, Chief Executive
Dawson Buck, Deputy Chief Executive
Ian Griffiths, Finance Director
Buchanan Communications 020 7466 5000
Richard Darby, Suzanne Brocks
A presentation for analysts will take place today at 10.00am at the offices of
Buchanan Communications, 107 Cheapside, London, EC2V 6DN. Please call Buchanan
Communications for more details.
Notes to Editors
Founded in 1994, ANGLE is an international venture management and consulting
group 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 is listed on AIM
(AGL.L); further information can be found on www.ANGLEplc.com
CHAIRMAN'S STATEMENT
Introduction
During the half year to 31 October 2004, ANGLE made good progress in developing
its business in accordance with plans set out at flotation in March 2004.
Results
In the half year ended 31 October 2004, ANGLE increased turnover by 53% to £1.73
million (2003: £1.13 million). The loss before tax was £1.37 million (2003:
profit £0.01 million), which was made up of interest of £0.13 million (2003:
£3,917) and the following three elements:
• Profit before tax on the Consulting and Management
businesses increased by 381% to £0.29 million (2003: £0.06 million).
• Loss before tax on the Ventures business increased to
£0.75 million (2003: £0.05 million). This comprised revenues from existing
ventures of £0.09 million (2003: £0.12 million) and planned expenditure to
establish and develop new Ventures of £0.84 million (2003: £0.17 million).
• A provision for diminution in value of investments of
£1.03 million resulting from our holding in Corpora plc. Following its
acquisitions of Exago, Infonic and Algorithmix, and the integration and
development of its product suite, Corpora has recently reported improving
revenues.
The basic earnings per share loss increased to 8.18p (2003: loss 0.03p).
Finance
At the half year end, ANGLE had cash at bank of £7.25 million (2003: £2,907)
reduced from the balance at the start of the year of £8.25 million. This
reduction reflected planned expenditure to establish and develop new Ventures
and working capital requirements for the Consulting and Management businesses.
Progeny(R) Companies
Significant progress has been made in expanding our Ventures capabilities and
activities. Senior staff have been appointed to lead and develop new Ventures
in both the UK and US markets, bringing experience from major corporate,
management consulting and venture capital roles.
During the period, we established Novocellus to commercialise intellectual
property developed by the University of York. This company addresses an
estimated £250 million p.a. world market for IVF assays and supports the drive
for single embryo transfer. It has the potential to become a standard in all
IVF treatment.
We are in negotiation in the UK and the US with several major corporates and
universities to agree the basis for commercialisation of their intellectual
property.
Outlook for the full financial year
Trading indicators for the Consulting and Management businesses continue to be
strong and we expect results for the year to be in line with our plans.
The existing Progeny(R) Companies, Acolyte Biomedica, NeuroTargets and Provexis
are expected to continue to achieve milestone performance and Novocellus is
progressing through our Progeny(R) process. We are reviewing our
commercialisation plans for IDR Therapeutics given changing market conditions.
It is expected that further Progeny(R) Companies will be established in the
second half of the year.
Profitability in the Ventures side of the business for the year is dependent on
the timing of realisation of existing Progeny(R) Companies. The Group continues
to actively work with its Progeny(R) Companies to build value and develop them
towards trade sale or IPO at an appropriate time in their development.
Hance Fullerton
Chairman
OPERATIONS SUMMARY
Founded in 1994, the Group's integrated business model combines its
revenue-earning Consulting and Management businesses with its capital-growth
Ventures business:
• Consulting: consulting on the commercialisation of
technology, including consulting for major corporations, SMEs, regional and
national economic development agencies and governments;
• Management: taking direct management responsibility for
activities such as the operation of research parks and technology incubators and
the management of innovation and product development programmes; and
• Ventures: establishment and ownership of significant
equity stakes in a portfolio of technology companies (Progeny(R) Companies),
primarily in the biotechnology, electronics and IT sectors, with a view to
realising value in the medium to long term.
ANGLE has built profitable Consulting and Management businesses in the UK, US
and Middle East, providing revenue and expert in-house staff capability as well
as the opportunity to build important relationships with corporates, government
research establishments and universities. The relationships with owners of
intellectual property are a key channel for the Group to identify and exploit
opportunities to commercialise intellectual property using its proprietary
Progeny(R) process.
The Consulting and Management businesses have performed strongly during the half
year. Fees increased 62% to £1.64 million (2003: £1.01 million) resulting in a
profit of £0.29 million (2003: £0.06 million) and an operating profit margin of
17.5% (2003: 5.9%). A number of major contracts were secured during the year
and the order book is strong at £2.76 million (2003: £1.25 million).
The Ventures business made good progress during the half year. The management
teams in the UK and US were both strengthened with new recruits, and expenditure
on the development of new ventures was progressed in accordance with the plans
set out at the time of flotation.
During the period, ANGLE founded its first new venture business since flotation,
Novocellus Limited. Currently 100% owned by ANGLE, Novocellus has an exclusive
option (in accordance with the Progeny(R) process) to intellectual property from
the University of York, which will enable doctors to identify the viability of
embryos leading to successful pregnancy in the first stage of IVF treatment.
The technology, based on a non-invasive analysis of the embryo's amino acid
profile, has the potential to deliver major financial and emotional cost
benefits by making single embryo transfer a realistic target and thereby
reducing the incidence of multiple births and increasing the likelihood of
successful IVF treatment.
The Company's ongoing strategy is to create more Progeny(R) Companies in the
biosciences, electronics, optronics, IT, materials, nanotechnology and software
sectors. Going into 2005 the Ventures opportunity pipeline is strong. ANGLE's
business model, high calibre management and its Progeny(R) process have been
recognised by many potential technology partners as bridging a critical gap in
their intellectual property exploitation options. As a result ANGLE is
evaluating new Venture opportunities with several of the UK's and US's top
technology universities, key research organisations and FTSE 100 / Fortune 500
businesses. Substantial progress has been made in the half year in developing
these business relationships and building new Ventures propositions. It is
expected that further Progeny(R) businesses will be formed in the second half of
the year.
During the half year, good progress was made with ANGLE's other Progeny(R)
Companies, including:
• Acolyte Biomedica A medical technology company developing
a range of products for rapid detection of sepsis, blood infections and
antibiotic resistance. ANGLE's equity stake at the period end is 10.65%. The
company's technology, BacLite(R) uses AK rapidTM technology developed by the
Defence Science and Technology Laboratories (Dstl), an agency of the Ministry of
Defence at Porton Down, Wiltshire. The Company has demonstrated through
independent hospital analysis that it can detect hospital-acquired and other
serious infections in hours rather than days using its cost-effective BacLite(R)
platform. Acolyte is preparing to launch its first product - a rapid
microbiology test for MRSA, 'the hospital super-bug', in May 2005. BacLite(R)
rapid MRSA provides results in only 5 hours, which means that carriers of the
bacterium can be isolated quickly, thus preventing the spread of infection.
Rapid diagnosis also greatly improves the efficacy of treatment. BacLite(R)
rapid MRSA provides hospitals with a cost effective tool to help achieve new UK
Government targets for a 50% reduction in MRSA levels by 2008.
www.acolytebiomedica.com
• IDR Therapeutics A drug redevelopment company based in
Charlottesville, Virginia that redesigns drugs to remove toxic side effects.
ANGLE has a 64% stake. Major pharmaceutical companies have a strong need to
bolster drug pipelines and deal with late stage failures or subsequent side
effects. However, there have been changes in the dynamics of drug development
that have impacted our original commercialisation plans. ANGLE is presently
reviewing its commercialisation plan for IDR Therapeutics. It is expected that
this review will be completed by the year end.
• NeuroTargets A functional genomics company set up to
discover and develop new drugs to treat diseases related to nerve damage.
ANGLE's equity in NeuroTargets at the period end is 29.41%. During the half year
additional funding was secured and a collaborative agreement was signed with
BioFocus plc to develop compounds focusing on pain relief and nerve
regeneration. At the same time a new CEO was appointed to drive
commercialisation of the proprietary drug targets. www.neurotargets.co.uk
• Provexis A nutraceutical company that develops functional
foods, supplements and medical foods to improve cardiovascular health. ANGLE's
equity in Provexis at the period end is 32.02%. Clinical trials were
successfully completed during the half year. Provexis is launching its first
product in Summer 2005, a juice drink containing CardioFlow(R) (the company's
patented natural fruit extract which has been proven in human trials to 'thin'
the blood and benefit the circulation). Provexis has collaborated with the
Rowett Institute (a leading human nutrition research centre) over a four year
period to develop and clinically test CardioFlow(R). Provexis is collaborating
with Nutrinnovator plc to access their retail expertise in launching the
product. www.provexis.com
Following the sale of our Progeny(R) Company Exago to Corpora plc in a share for
share exchange, ANGLE retains a holding of 16.82% at the period end in Corpora.
Corpora plc is an AIM traded information management company supporting users of
data to find, distil and learn the information they need, when they need it.
The company's software solutions address geographically dispersed, information
intensive organisations such as government, finance, legal and pharmaceutical.
www.corporaplc.com
ANGLE PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
Note Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Turnover
Consulting and Management 1,642,682 1,013,099 2,656,553
Ventures 88,612 118,117 219,257
_________ _________ _________
1,731,294 1,131,216 2,875,810
Operating costs
Consulting and Management (1,355,025) (953,281) (2,228,087)
Ventures (839,838) (167,946) (674,918)
_________ _________ _________
(2,194,863) (1,121,227) (2,903,005)
Other operating income
Ventures
Profit on disposal of investments - - 2,309,281
Operating profit / (loss)
Consulting and Management 287,657 59,818 428,466
Ventures (751,226) (49,829) 1,853,620
_________ _________ _________
(463,569) 9,989 2,282,086
Provision for diminution in value of
current asset investments 5 (1,032,127) - -
Net interest 130,094 3,917 46,384
_________ _________ _________
Profit / (loss) on ordinary activities
before taxation (1,365,602) 13,906 2,328,470
Tax on profit / (loss) on ordinary activities 3 - (17,000) (37,850)
_________ _________ _________
Retained profit / (loss) for the year (1,365,602) (3,094) 2,290,620
========== ========== ==========
Earnings per share 4
Basic (pence per share) (8.18) (0.03) 20.43
Diluted (pence per share)
(8.18) (0.03) 19.45
The profit and loss account has been prepared on the basis that all operations
are continuing operations.
ANGLE PLC
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Retained profit / (loss) for the year (1,365,602) (3,094) 2,290,620
Currency translation differences 756 - (26,647)
_________ _________ _________
Total gains and losses recognised in the period (1,364,846) (3,094) 2,263,973
========== ========== ==========
ANGLE PLC
CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2004
Note Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Fixed assets
Tangible assets 59,209 31,411 31,959
Investments 622,904 360,464 516,782
_________ _________ ________
682,113 391,875 548,741
Current assets
Investments 5 1,366,050 - 2,398,177
Debtors - due within one year 754,607 777,154 625,503
Debtors - due after one year 239,570 - 239,570
Cash at bank and in hand 7,247,827 2,907 8,246,871
_________ _________ ________
9,608,054 780,061 11,510,121
Creditors: amount falling due
within one year (665,829) (588,787) (1,063,116)
_________ _________ ________
Net current assets 8,942,225 191,274 10,447,005
_________ _________ ________
Total assets less current liabilities 9,624,338 583,149 10,995,746
Creditors: amounts falling due
after more than one year (2,446) (10,488) (6,354)
_________ _________ ________
Net assets 9,621,892 572,661 10,989,392
========== ========== =========
Capital and reserves
Called up share capital 1,669,648 1,027,732 1,669,648
Share premium account 7,534,677 2,553,356 7,537,331
Profit and loss account (2,135,789) (3,008,427) (770,943)
Other reserves 2,553,356 - 2,553,356
_________ _________ _______
Shareholders' funds - equity interests 6 9,621,892 572,661 10,989,392
========== ========== =========
ANGLE PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Net cash inflow / (outflow) from operating activities (977,085) (251,614) 48,592
Returns on investment and servicing of finance
Interest received 134,037 230 10,960
Interest paid (1,816) (2,913) (7,307)
________ ________ _______
Net cash inflow / (outflow) from returns on
investment and servicing of finance 132,221 (2,683) 3,653
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (39,188) - (15,218)
Proceeds on disposal of tangible fixed assets - 1,542 650
Purchase of investments (106,122) - (106,317)
________ ________ _______
Net cash inflow / (outflow) for capital
expenditure and financial investment (145,310) 1,542 (120,885)
Acquisitions and disposals
Net cash disposed of with subsidiaries - - -
________ ________ _______
Net cash outflow from acquisitions and disposals - - -
Equity dividends paid - - -
_______ _______ _______
Net cash outflow before management
of liquid resources and financing (990,174) (252,755) (68,640)
Financing
Issue of ordinary share capital (2,654) - 8,269,775
Capital element of finance lease contracts (6,216) (10,354) (20,212)
________ ________ ________
Net cash inflow / (outflow) from financing (8,870) (10,354) 8,249,563
________ ________ ________
Increase / (decrease) in cash in the year (999,044) (263,109) 8,180,923
========= ========= =========
ANGLE PLC
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
C1 Reconciliation of operating loss to net cash outflow from operating activities
Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Operating profit / (loss) (1,495,696) 9,989 2,282,086
Depreciation of tangible fixed assets 11,790 15,874 30,823
Loss / (profit) on disposal of tangible
fixed assets - (1,123) 118
(Increase) / decrease in current asset investments 1,032,127 - (2,398,177)
(Increase) / decrease in debtors (131,232) (186,628) (332,361)
Increase / (decrease) in creditors within one year (394,074) (89,726) 466,103
_________ _________ ________
Net cash inflow / (outflow) from
operating activities (977,085) (251,614) 48,592
========== ========== =========
C2 Analysis of net funds
1 May Cash flow Other non- 31 October
2004 cash changes 2004
(Audited) (Unaudited) (Unaudited) (Unaudited)
£ £ £ £
Net cash:
Cash at bank and in hand 8,246,871 (999,044) - 7,247,827
Debt:
Finance leases (16,891) 6,216 - (10,675)
________ ________ ________ ________
Net funds 8,229,980 (992,828) - 7,237,152
========= ========= ========= =========
C3 Reconciliation of net cash flow to movements in net (debt) / funds
Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Increase / (decrease) in cash in the period (999,044) (263,109) 8,180,923
Cash outflow from reduction in debt 6,216 10,354 20,212
New finance leases - (6,764) (6,764)
Exchange differences - - (26,647)
________ ________ ________
Movement in net (debt) / funds in the year (992,828) (259,519) 8,167,724
Opening net funds 8,229,980 56,245 62,256
________ ________ ________
Closing net funds 7,237,152 (203,274) 8,229,980
========= ========= =========
ANGLE PLC
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
1 Basis of preparation
The interim financial statements, which do not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985, have been prepared
on the basis of the accounting policies set out in the statutory accounts of the
Group for the year ended 30 April 2004. The interim financial statements, which
were approved by the directors on 19 January 2005, are unaudited but have been
reviewed in Accordance with Auditing Practices Board Bulletin 'Review of Interim
Financial Information' by the auditors.
Comparative figures for the year ended 30 April 2004 are an abridged version of
the Group's full accounts which carry an unqualified audit report and have been
delivered to the Registrar of Companies.
2 Compliance with accounting standards
The Financial Statements are prepared in accordance with the Companies
Act 1985 and applicable United Kingdom accounting standards.
The directors have, in accordance with sections 226 and 227 of the
Companies Act 1985, departed from the standard format of the profit and loss
account in presenting the financial statements. Profits and losses on disposals
of fixed asset investments, and provisions for diminution in value of fixed
asset investments are included in 'Other operating income' within operating
profit as these represent a return from a principal class of business activity.
Other material disposals that are not part of the main business activities are
shown below operating profit in accordance with the Companies Act 1985 and FRS3
- Reporting Financial Performance. Examples of such material disposals include
fixed assets, such as property, or current asset investments, such as listed
shares held for disposal in the short term.
3 Tax
The Group is eligible for and takes advantage of 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%, and subject to certain other tests, being free of corporation tax.
Tax is therefore based on the net of profits in the Consulting and
Management businesses as relieved by losses incurred in the establishment and
development of new Ventures.
4 Earnings per share
The basic and fully diluted earnings per share is calculated on an
after tax loss of £1.37 million (6 months to 31 October 2003: loss £3,094, year
to 30 April 2004: profit £2.29 million).
The basic earnings per share is based on 16,696,484 weighted average
ordinary 10p shares (6 months to 31 October 2003: 10,277,317 year to 30 April
2004: 11,209,904). Shares options are non-dilutive for the period because of
the loss. The fully diluted earnings per share is based on 16,696,484 weighted
average ordinary 10p shares (6 months to 31 October 2003: 10,277,317, year to
30 April 2004: 11,775,197).
ANGLE PLC
NOTES TO THE FINANCIAL INFORMATION (Continued)
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
5 Current asset investments
Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Net Book value 2,398,177 - -
Additions - - 2,398,177
Provision for diminution in value (1,032,127) - -
_________ _________ _________
Net Book value 1,366,050 - 2,398,177
========== ========== ==========
Market value
Listed investments at period end 1,366,050 - 2,549,961
Current asset investments are valued at the lower of cost and
mid-market value at the balance sheet date. They comprise shares in Corpora plc
which is listed on the London Stock Exchange' Alternative Investment Market.
6 Reconciliation of movement in shareholders' funds
Group Six months ended Year ended
31 October 31 October 30 April
2004 2003 2004
(Unaudited) (Unaudited) (Audited)
£ £ £
Profit / (loss) for the period (1,365,602) (3,094) 2,290,620
Conversion of warrants - - 16,916
Gross proceeds from issue of shares - - 9,000,000
Issue expenses (2,654) - (837,669)
Currency translation differences 756 - (26,647)
_________ _________ _________
Net addition / (reduction) to shareholders'
funds (1,367,500) (3,094) 10,443,220
Opening shareholders' funds 10,989,392 575,755 546,172
_________ _________ _________
Closing shareholders' funds 9,621,892 572,661 10,989,392
========= ========= =========
7 Shareholder communications
The announcement is being sent to all shareholders on the register on 19 January
2005. 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: Surrey Technology Centre, Surrey Research Park,
Guildford, GU2 7YG.
ANGLE PLC
INDEPENDENT REVIEW REPORT TO ANGLE PLC
FOR THE SIX MONTHS ENDED 31 OCTOBER 2004
Introduction
We have been instructed by the company to review the financial information set
out on pages 7 to 13 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of their interim report and for no other purpose. We do
not, therefore in producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent in writing.
Directors' Responsibilities
The interim statement, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Interim Statement in accordance with the
Alternative Investment Market Rules which require that the accounting policies
and presentation applied to the interim figures must be consistent with those
that will be adopted in the company's annual accounts.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information.
Review Conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 October 2004.
BAKER TILLY
Chartered Accountants
Guildford
This information is provided by RNS
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