Interim results for the six months ended 30 June 2023
Proteome Sciences announces its unaudited interim results for the six months ended 30 June 2023.
· Proteomics services revenues £1.01m (H1 2022: £0.85m)
· TMT® reagent sales and royalties £2.20m (H1 2022: £2.39m)
· Total revenues £3.21m (H1 2022: £3.24m)
· Gross profit £1.77m (H1 2022: £1.80m)
· Cost of sale and administrative costs £3.37m (H1 2022: £2.98m)
· Adjusted EBITDA** £0.27m (H1 2022: £0.64m)
Commenting on these results, Dr. Mariola Soehngen, Chief Executive Officer of Proteome Sciences, said:
"Our revenues from TMT® and TMTpro™ reagents continue to be the most significant source of income.
TMT sales were £1.45m in H1 2023 compared to £1.45m in H1 2022. Royalties were £0.75m in H1 2023 compared to £0.94m in H1 2022, a decline of 20% mainly due to the adjustment in royalty rate under the exclusive licence and distribution agreement with Thermo Scientific after the expiration of the earliest TMT patent.
Our service business started 2023 with a strong order book and large bank of samples. We report another strong first half with service revenues up 19% over the same period in 2022, despite the macroeconomic challenges which have hit the markets in general and our industry. We remain confident to deliver further growth in the second half of the year in our service business.
Over the last 3 months we have steadily increased performance and consistency of our SysQuant® SCP workflow for single cell proteomics. We are now measuring over 1,100 proteins per cell and can process over 500 cells per experiment, revealing differences in disease processes and treatment response that will empower new approaches in drug development. Final preparations for launch of the SysQuant® SCP are underway and we are already experiencing strong customer interest.
In the life cycle management of our TMT® reagents we have run a program to extend the TMTpro™ multiplexing rate to 32. Initial testing has been positive and we are progressing well with manufacturing of the 14 additional tags that combine with the existing 18plex reagents. We are also working on a first generation of new isotopic tags for use in multiplexed data-independent acquisition ("plexDIA"). We have a sixplex product manufactured and are completing proof of concept studies in partnership with external collaborators. We are also actively progressing licensing discussions and expect to launch them shortly with a strong distribution partner.
Earlier this year we took an important step in growing our business, with the announcement that we intend to open a US lab in the fourth quarter of this year. Whilst we already have an excellent customer base in the US, concerns over shipping costs, timing delays and customs delays have restricted the volume of orders that could be processed. We will now be able to provide a more accessible service to the rapidly growing pharma/biotech community across the US as the demand for proteomics services continues to expand. We are looking forward to launching our improved service to the US marketplace with the opening of the San Diego facility later this year.
In May 2023, due to the strong cash position, the Company repaid in full the outstanding loan and associated interest (together totalling £824,424) to Vulpes Investment Management Private Limited.
We continue to make strategic investments in new equipment, new technology (SysQuant® SCP) and additional staff - both in Europe and the US subsidiary - and we are confident that these should be well reflected in the future growth of our business."
**Adjusted EBITDA (a non-GAAP company specific measure which is considered to be a key performance indicator of the Group's financial performance).