Angle PLC Shares Fall as Revenue Misses Expectations

Angle PLC shares experienced a decline following the announcement that full-year revenue is projected to more than double, but fall short of market expectations. As of 0910 GMT, shares were down 15% at 11.0 pence, representing a decrease of 2.0 pence.

Lower Revenue Than Forecasted

The U.K.-based liquid-biopsy company stated on Thursday that it anticipates reporting revenue of £2.2 million ($2.7 million), a significant increase from the £1.0 million generated the previous year. However, this figure falls below the current market forecast of £3.0 million.

Prospects for 2023 and Beyond

Angle PLC expects to secure new sales amounting to approximately £3.3 million in 2023. However, revenue recognition for some of these sales will extend into 2024. Consequently, revenue recognized for 2024 is estimated to triple compared to that of 2023.

Improved Gross Margin and Financial Outlook

The company anticipates a higher gross margin for the second half of the year, primarily due to the product-service mix. Alongside stringent cost control measures, Angle PLC predicts a year-end cash position in line with expectations, totaling around £15 million.

Streamlining for Future Efficiency

In order to streamline its services business, Angle PLC will be closing its U.S. clinical laboratory and shifting its focus to the U.K. This strategic move is expected to result in non-cash impairments of approximately £500,000 and one-off cash costs of around £700,000. As a result, the company is projected to incur an operating loss of roughly £21 million for the year, a decrease from the previous year's loss of £24.2 million.

Furthermore, this streamlining initiative will contribute to cost savings of approximately £3 million annually as of 2024.