RNS Number : 0103P Advanced Oncotherapy PLC 03 · Reorganisation of business focused on the development of the LIGHT ... (CCL module ), Pyramid (beam ... quarter of the size and between

6/3/2015 Advanced Oncotherapy | Final Results | FE InvestEgate

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Advanced Oncotherapy

Final Results

RNS Number : 0103PAdvanced Oncotherapy PLC03 June 2015

3 June 2015ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

Final Results for the year ended 31 December 2014 Advanced Oncotherapy (AIM: AVO), the developer of next generation proton therapy systemsfor cancer treatment, announces audited results for the year ended 31 December 2014, a yearof significant progress in the development of the Company's LIGHT system. A number of key milestones in the development of the LIGHT system have also beencompleted following the close of the financial year in line with expectations. The Companyremains on track to install its first unit in Harley Street by the end of 2016 with first patienttreatment expected in 2017. Highlights:· Reorganisation of business focused on the development of the LIGHT system· Completed the formation of a management team to deliver LIGHT through to commercial

launch and operation· Key supply chain partners appointed: ScandiNova (RF Power), Toshiba (Klystron), VDL

(CCL module), Pyramid (beam focusing nozzle) and ICT (software)· Exclusivity agreement with SUNY Upstate Medical University Hospital in New York State· Over £12 million raised during the period to fund development and debt significantly

reduced· Revenue for the year of c.£0.106 million (2013: £0.068 million)· Loss per share from continuing operations for the year of (0.75)p (2013: (0.86)p) Post Period End Events & Key Milestones· Oversubscribed placing to raise £20 million (net) to develop and install first LIGHT system· First commercial sale of the LIGHT system in China to Sinophi Healthcare· Harley Street lease agreement for the UK's first Proton Therapy Centre using the LIGHT

System· Manufacture of first CCL module complete and delivered· Successful RF Power tests of the first CCL module· Sale of Southampton property for £290k Sanjeev Pandya, CEO of Advanced Oncotherapy, said: "The outlook for the Company is verypositive. Already in 2015 we have successfully completed delivery and testing of some keycomponents and we have reached a number of key milestones as planned. There is a broad andgrowing market opportunity that Advanced Oncotherapy, with our unique combination oftechnology and strengths, is ideally placed to take advantage of. I believe the opportunity issubstantial − this is good news for our people, our patients and our shareholders."



Advanced Oncotherapy Plc www.avoplc.comSanjeev Pandya, CEO Tel: +44 20 3617 8728Nicolas Serandour, CFO

Westhouse Securities (Nomad & Joint Broker)Antonio Bossi / David Coaten Tel: +44 20 7601 6100

Beaufort Securities (Joint Broker)Saif Janjua / Jon Levinson Tel: +44 20 7382 8300

Walbrook PR (Financial PR & IR) Tel: +44 20 7933 8780 or [email protected] McManus / Anna Dunphy Mob: +44 7980 541 893 / Mob: +44 7876 741 001 About Advanced Oncotherapy Plcwww.avoplc.com

Advanced Oncotherapy's team based at CERN in Geneva focuses on the development of aproprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHTaccelerates protons to the energy levels achieved in legacy machines but in a unit that is aquarter of the size and between a quarter and a fifth of the cost. This compact configurationdelivers proton beams in a way that facilitates a greater precision and electronic control whichis not achievable with older technologies Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best inmodern technology. As a result, Advanced Oncotherapy will offer healthcare providersaffordable systems that will enable them to treat cancer with an innovative technology as wellas better health outcomes and lower treatment related side effects. Therefore, the disruptivetechnology of the Company changes the financial model of proton therapy now that LIGHT isexpected to have a comparable cost to conventional radiotherapy. The Company has signed a purchase agreement with Sinophi Healthcare Limited for one LIGHTproton therapy system to be installed in a hospital in China and has further Letters of Intentfrom other healthcare providers. Advanced Oncotherapy continually monitors the market for any emerging improvements indelivering proton therapy and actively seeks working relationships with providers of theseinnovative technologies. Through these relationships, the Company will remain the primeprovider of an innovative and cost‐effective system for particle therapy with protons.

CHAIRMAN'S STATEMENT OVERVIEWBeing a stakeholder in Advanced Oncotherapy whether it is as a shareholder, a Director or anemployee is part of a very exciting journey. We continue to build a company dedicated toproviding cancer patients with more effective and affordable radiation treatments, through thedelivery of a ground‐breaking proton therapy system, called the LIGHT system, and byimplication provide superior returns. The first stage of that journey for us was accomplished following the acquisition of ADAM in2013, which laid the foundations for what Advanced Oncotherapy is today. ADAM is the firstmedical UK spin off from CERN. It is composed of a team of 25 experts in accelerator anddetector technology formerly working at CERN; it remains today at the CERN campus nearGeneva, home of the Large Hadron Collider, the most powerful particle accelerator in theworld. The successful integration of ADAM means the Company is in a unique position toleverage not only a hands‐on commercial experience in healthcare but also a revolutionarytechnology.

mailto:[email protected]

http://www.avoplc.com/

http://www.avoplc.com/



The second stage of the journey was to build a team with a successful track‐record as well asan integrated network of global suppliers needed for manufacturing the LIGHT system. Anumber of important appointments were made in 2014, their key priority and remit being todevelop the first accelerator and operational LIGHT system as quickly and safely as possible.The various agreements signed over 2014 with industry leaders who continually strive forexcellence in service mean the Company has also now all the building blocks to create a game‐changing proton therapy system. The Company is therefore one step closer to offering a newtreatment solution that is anticipated to disrupt the market and its key forces. In parallel, theCompany has reorganised its operations and implemented a financial strategy to fund itsgrowth plan in order to ensure the delivery of the first LIGHT system in 2016. The results we present today are proof that great strides have been made. The time is nowright to move to the next stage of our journey. MAXIMISE THE IMPACT OF OUR FOUNDATIONSOur next stage is to maximise the impact of our foundations and leverage more of our assets inorder to meet our mission. As part of the developmental plan of the LIGHT system, we have engaged with a wide range ofstakeholders who serve as ambassadors for the important milestones ahead of us. Theseinclude: · Patients ‐ No stakeholder is more influential than patients. One of our core values is

commitment to patients and this drives all the key strategic decisions we take.

· Employees, opinion leaders and renowned experts who are supporting our project. · Suppliers and other partners ‐ 2014 marks the year when we have built an integrated

network of suppliers. All of them have been carefully selected based on their expertise andtheir ambition to make a difference to how cancer should be treated. Other stakeholderswho embrace our project include property development companies. In that regard, theCompany is pleased to have signed in early 2015 an agreement with Howard de WaldenEstate to lease a prestigious location in London, which will become the UK's first ProtonTherapy Centre using the Company's LIGHT System.

· Customers ‐ Customers are obviously our first champions. They are deeply interested in

the long term health of the Company and we are delighted to report that our relationshipwith our customers has gone from strength to strength. In December 2014, AdvancedOncotherapy extended its collaboration with SUNY Upstate Medical University Hospital. Asa result, SUNY is working exclusively with the Company to install a multi‐room protontreatment facility in the highly‐sought after area of Syracuse, Central New York State.

PEOPLEInvesting in our people is, without doubt, the most important investment we make in thefuture of our business. The development, motivation and well‐being of staff is vital to thesuccess of Advanced Oncotherapy, and their dedication, professionalism, knowledge andenthusiasm is always of the highest standard. On behalf of all our stakeholders, we would liketo thank all our employees for their hard work and their contribution to the Company's successduring a year in which Advanced Oncotherapy once again demonstrated its ability to meet itsobjectives whilst constantly striving for innovation. We look forward to their continued support as we enter what promises to be atransformational period for the Company. GOVERNANCEOur business operates in highly regulated markets, requiring that the Board has a continuousfocus on good governance and oversight. An area of particular focus for the Board during 2014was to ensure that the business is unencumbered by legacy issues and well‐funded. This is whythe Company successfully raised approximately £12 million in 2014 and implemented a



restructuring programme which is on track to deliver significant benefits, furtherdemonstrating our key focus on the LIGHT system. In the year ahead we will continue to focus on risk management to ensure that our processesremain appropriate as the business grows. The risk report and governance report in our AnnualReport provide further information. OUTLOOKIn closing, the journey in 2015 promises to be exciting as we underpin the advancements wehave made to date and seek to capture the opportunities that are in front of us. We trulybelieve that the Company is at a clear inflection point in a radiation therapy market that is setto transform itself. With ever increasing health demands from a growing and ageing populationfor a more affordable and targeted proton therapy, we believe that the LIGHT system willprovide a key role in helping contain costs and at the same time improve overall patient care. Enormous opportunities lie ahead of us, and we are confident that Advanced Oncotherapy willgo from strength to strength, for the benefit of all its stakeholders. Dr Michael Sinclair Lord David EvansExecutive Chairman Deputy Chairman

3 June 2015

CEO'S REVIEW OVERVIEWWe operate in an attractive and dynamic marketplace that is opening up a bigger and broaderopportunity, one that we are uniquely positioned to take advantage of. The healthcare marketis characterised by ageing populations and skyrocketing costs which are putting unprecedentedfinancial pressure on healthcare providers as well as payers. The result is often a decreasinglevel of care. In response, fundamental changes are taking place in the manner in whichhealthcare is administered. This change, towards a more patient‐centric system, is madepossible by advances in technology and the need to reduce healthcare costs. With that in mind, our strategy is to disrupt the traditional business model associated withproton radiotherapy equipment. The advantages of proton therapy ‐ in particular overconventional radiation therapy ‐ have been appreciated for some decades. As the protontravels through the body, only a small amount of energy is delivered along and most of thedose can be delivered at a precise distance in the tissue; so protons deposit very little of theirdamaging energy going in and deliver most of their punch when they come to a stop at thetumour site. As a result, proton therapy overcomes one of the major limitations associatedwith conventional radiotherapy, that of irradiating healthy tissue leading to unwanted sideeffects. However, a proton technology that is comparable to best‐in‐class X‐rays and at asimilar price has so far proven impossible. It is therefore no surprise that there are only 54facilities in the world practising proton therapy treatment at present ‐ each facility costing upto $250 million, and each clinical treatment radiotherapy course costing up to $100,000. Current machines in operation utilise cyclotron technology to generate and accelerate theproton beams. These are the current "best available" proton machines. Problems arise fromtheir huge and unwieldy nature and slow way in which beam energies change during therapy.Our team has disrupted and tackled this issue by developing a linear accelerator technology. We believe that our approach and our ground‐breaking LIGHT technology will significantlychange the current market dynamic we are seeing in proton therapy, enabling more machines



to be installed, more patients to be treated, and ultimately significant value for shareholders tobe created. OUR GROWTH OPPORTUNITIESOur willingness to embrace this change, innovate and take on this challenge is opening upexciting new opportunities and giving us significant ways to grow. This opportunity for growthlies in three areas. · First and foremost, we see an opportunity to provide a ground‐breaking proton therapy

technology not only to large cancer centres, but also to smaller healthcare units located inlarge cities where proton therapy is still largely unavailable. This will allow patients to betreated in closer proximity to their families, providing social and emotional support in afamiliar environment, clearly of paramount importance when treating cancer.

· Second, we see significant potential by delivering a more affordable proton therapysystem. We can unlock new pockets of demand and extend our reach in cancer centreswhich operate in a tightly cost‐constrained environment.

· Third, the design of our LIGHT system as a complete turn‐key solution together with itsability to "spot paint" each "point" (or voxel) of the tumour opens up new possibilities. TheLIGHT system allows re‐treatment of the voxels (by the spot beam) up to 200 times persecond and with rapid changes in energy and dose (proton numbers deposited) differentparts of the tumour can receive different amounts of radiation. This results in hypo‐fractionated radiation schedules, where a higher dose per fraction is delivered in a smallernumber of sessions, leading to lower toxicity and fewer hospital visits.

This represents a huge opportunity for treating patients closer to where they live, at a moreaffordable price and with superior clinical outcomes. This in turn offers a route to building asolid platform for sustainable and profitable growth. OUR STRENGTHSAdvanced Oncotherapy's success in exploiting the growth opportunity that lies ahead rests onour unique combination of strengths in many areas. These are ones in which we havedeveloped significant capabilities and in areas which are hard to replicate. We operate in a segment of the cancer market that offers huge potential, one which issupported by long‐term growth drivers. In addition, the proton therapy market is at a clearinflection point with an increased market awareness and many clinical advances likely to leadto double‐digit growth for the next two decades. Since the development of the first LIBO prototype, we have made huge strides to leverage ourworld‐leading technology and differentiate our LIGHT system with significant advantages over"first generation" systems. These advantages include its lower cost compared to cyclotrons orsynchrotrons; greater precision of the beam which allows to more accurately target cancercells and avoid healthy tissues; lower shielding requirements which help to significantly reducethe size and construction cost of the facility required to house the accelerator; and its modularnature which provides healthcare operators greater freedom to customise their service toparticular cancer treatments. As a medical spin‐off from CERN, we also benefit from a proven innovation capability which weare uniquely positioned to exploit thanks to a clear development path. As a testimony of ourinnovation excellence, we have signed our first commercial contract with Sinophi HealthcareLimited and we have executed Letters of Intent with highly recognised cancer institutions tosupply and provide LIGHT systems. These prospective partnerships with the Upstate UniversityHospital at Syracuse New York, and two of the best recognised and sizable UK hospital groups(Spire and BMI) align perfectly with what the Company is building: innovation at the heart of apatient‐centric model. Advanced Oncotherapy also takes great pride in working with suppliers who have the right



track‐record and regulatory expertise, necessary skills to deliver the first LIGHT system in linewith the market's expectations and ensure that our long‐term growth remains profitable andsustainable. As such, we have built an integrated and collaborative supply chain. These variouscollaborations with established global suppliers also give further confidence to patients,customers and shareholders that Advanced Oncotherapy is committed to choose not the easypath, but the right path. Underpinning our strength is our desire to develop a business that is for the long‐term. Toachieve sustained success, we have built a team that brings decades of experience, knowledge,and expertise spanning all aspects of healthcare services and disciplines. In addition, theleadership team is supported by an experienced Board of Directors, which benefits from strongconnections in the medical and financial community as well as distinguished scientists andleaders at world‐renowned medical research and physics institutions. OUR PERFORMANCE2014 was a year of significant progress for Advanced Oncotherapy. Successful implementation of a collaborative supply chain, with positive results alreadyvisibleA key aspect of the success of the Company is its ability to draw upon the expertise of ourpartners. Our whole approach and procurement process is designed to engage supply chainpartners who work with us over the long term, and always to the highest standards. Inpractice, this means that we are careful about who we choose, because we plan to worktogether for many years as we ramp up production year on year, investing in each other'ssuccess. The rewards offered by a partnership with Advanced Oncotherapy mean that, inreturn, our partners are able to offer us significant added value in the services they provide.Such a partnership only works with organisations that are similarly committed to both an open,honest and long term relationship. Consistency and reliability are the watchwords when itcomes to selecting our supply chain partners. With this philosophy at the heart of our business model, 2014 represents the year when wesigned up a number of critical supply partners and ensured that we have the best componentsfor our system. These partners include industry leaders such as: · ScandiNova which develops the power system, or Modulator;

· Toshiba Electron Tubes and Devices which supplies the Klystron ‐ a wave‐based particle

accelerator component. This component provides the necessary frequency to protons inthe accelerator and is key in accelerating the protons to high speed before they aretargeted at tumours within the patient's body;

· VDL ‐ a spin‐off from Philips which develops the Coupled Cavity Linac ("CCL") acceleratingstructures, a series of cells which accelerate the protons from energies of 37.5Megaelectron Volts (MeV) to the 230MeV required to treat all radiosensitive tumoursfound in a typical clinical setting;

· Pyramid Technical Consultants which develops the dose delivery system also referred toas the Beam Focusing Nozzle. The Nozzle − which is positioned at the end of theaccelerator − ensures that the proton beam is both measured and targeted to maximise itseffectiveness; and

· ICT which develops the software systems that will manage the patient workflow andintegrate the LIGHT system into the hospital's IT systems.

We have already reaped the benefits of our collaborative supply chain with the manufacture ofthe first CCL module, which was shipped to Advanced Oncotherapy's facilities at CERN inJanuary 2015. We are pleased with the progress we made in 2014 and we remain confidentthat progress will continue throughout 2015.



Stronger ties with customers, further strengthening the role of Advanced Oncotherapy as apioneer in proton therapy2014 also marks the year when we strengthened our relationship with prospective customers: In December 2014, the SUNY Upstate Medical University Hospital ("SUNY") signed anagreement to work exclusively with Advanced Oncotherapy to install a three‐room protontreatment facility incorporating the first operational LIGHT system in the highly sought afterarea of Syracuse, Central New York State. Under this agreement, SUNY ‐ the leading academicmedical centre in Central New York ‐ is set to become Advanced Oncotherapy's US hub forresearch and development, manufacture and treatment. In parallel with the US installation, we also signed an agreement to lease a prestigious HarleyStreet location, which will become the UK's first Proton Therapy Centre using the Company'sLIGHT System. The centre will become a hub where patients from London, the rest of the UKand others from further afield can have their cancers effectively treated with a leading‐edgeproton therapy system. As part of the 50‐year lease agreement for the whole of 141 HarleyStreet and part of 143 Harley Street, Howard de Walden Estates will bear the £6/7 million costto redevelop the buildings. Work is expected to start in July 2015, with the property expectedto be handed over to Advanced Oncotherapy by the end of 2016 when the first LIGHT Systemwill be ready, enabling patients to start treatments in 2017. This agreement highlights a number of benefits of the LIGHT system: § It will be the first next‐generation cancer treatment centre;

§ A proton therapy system will be installed into two standard row houses in a central city

location, totalling 8,000 sq. ft. This has not been done with any of the existing protonsystems currently operational and further validates the safety features and compactness ofour LIGHT machine; and

§ The project cost is estimated at approximately £30 million, of which £6/7 million relates theredevelopment of the buildings. This is significantly lower than the costs in other projectsusing other technologies. In comparison, the cost of construction of a proton therapycentre at the Christie in Manchester and UCLH in London has been estimated at more than£100 million each.

A simpler and more transparent organisation, well‐funded for delivering the next stage ofthe Company's evolutionAn essential step in creating a commercially focussed business, was to put in place amanagement team with the skills to deliver on the development of our LIGHT system and bringit successfully through to commercial launch and operation. In June I became Chief ExecutiveOfficer and Dr Michael Sinclair became Executive Chairman. We appointed Nicolas Serandourto the Board as Chief Financial Officer. Nicolas brings with him over 15 years of healthcareinvestment banking experience at leading investment banks. Euan Thomson also joined ourBoard of Directors. As a physicist and ex‐CEO of Accuray, the company that developed andproduced the CyberKnife, Euan is a great supporter of emerging disruptive healthcaretechnologies, and his appointment complements the skills and advice that are brought by ourother Non‐Executive Directors. Not only has the PLC Board been strengthened, but we are now benefitting from the verypractical expertise brought through key senior management appointments last year in theareas of project management, global manufacturing, procurement and supply chainmanagement. These appointments, alongside the high calibre Medical Advisory Board that wehave built to support us, provide a wealth of experience and high level advice for the Board, aswell as the skills necessary to execute our plans. Throughout 2014, it has also become clear that shareholders expect all of the future value ofthe business to come from the successful development of the LIGHT system. To ensure that weremain focussed on delivering this value and as highlighted in our interim results, we have



taken the decision to review strategic options for our non‐core business assets. We sold amedical property in Southampton for £290,000. The sale of another medical property inFolkestone, which is currently being marketed, will mark the complete transition away fromthe original business's history of property investment. In addition, we are looking at strategic options for Oncotherapy Resources Ltd, our subsidiaryfocused on distributing an innovative brachytherapy device. In order to accelerate focus on the successful development and launch of the LIGHT system,we have also launched a series of initiatives to create a stronger focus for the business, shorterdecision‐making processes, clearer division of responsibilities within the organisation and, notleast, sharper customer and market focus. These initiatives were aimed at: § Setting a customer‐focused agenda by, for example, shifting the role of key scientists from

developing the LIGHT machine and building their capability to facilitating greater customerorientation, understanding and connection throughout the entire business. In addition, werestructured the team so that scientific outputs, deliverables and economic constraints aremore closely connected;

§ Engaging creative energy. This encompasses the recruitment of people from other industrysectors to provide fresh perspectives and different experience and personality profiles or amore open forum to develop an insightful culture where people naturally exhibit acuriosity to understand customers at a deeper level;

§ Being more transparent to the market. During our Investor Day held in London in November2014, we outlined in greater detail our strategy and key milestones for the developmentand commercialisation of our LIGHT system; and

§ Adapting our organisational structure through the implementation of a new review systemand incentivisation scheme.

We were also very active in the capital markets, raising over £12 million in 2014 in order tofund our growth in a balanced manner. We believe that we are taking the right actions toensure that all of our financial resources will be channelled into the development of LIGHT. InMarch 2014 we announced an agreement with Bank of Ireland (UK) plc for them to receive 20million shares in lieu of £1.3m of mortgaged debt on our investment property in Folkestone.This has significantly reduced our level of debt with overall borrowings reduced to £987,832 asat 31 December 2014, compared to borrowings of £3,190,315 at the same time last year. POST PERIOD END EVENTSThe strong momentum we have seen in 2014, coupled with strong progress on all theinitiatives being implemented by the Company, paints a bright picture for 2015 and this hasmaterialised into two major events in the first half of 2015: § In March 2015, we signed a purchase order with Sinophi Healthcare Limited for one LIGHT

proton therapy system to be installed in a hospital in China. The initial purchase price forthe accelerator is around US$40m (the final price will be dependent on customisations)and once the milestone payments have all been received and the LIGHT machine is up andrunning, our Company will provide long‐term maintenance and support. The LIGHT systemis part of a US$200m project Sinophi expects to start in early 2016 and will support up tothree treatment rooms. As Sinophi and its backers (which include Morgan Stanley PrivateEquity Asia) undertook an extensive due diligence as part of this process, this purchaseorder represents a huge endorsement of our LIGHT system. Sinophi intends to be a marketleader in the provision of regional oncology hospitals in China, which is one of the biggestcancer markets in the world, so there is scope for a substantial number of LIGHT systemorders in due course. Indeed, Sinophi signed an additional exclusive 15‐year agreement tobe our first tier distributor in China and other South East Asian countries; and

§ In May 2015, we raised £21 million of new equity. The placing was oversubscribed with



support from existing and new institutional investors. The funds will be used to developand install our LIGHT system in Harley Street, and to support the working capitalrequirement of the group.

CONCLUSIONOf course, none of what we do would be possible without the dedication and hard work of ourpeople. They are vital to our success and I would like to thank each and every one of them fortheir contribution in the last 12 months. With their continued support, the outlook for the Company is very positive. There is a broadand growing market opportunity that Advanced Oncotherapy, with our unique combination ofstrengths, is ideally placed to take advantage of. I believe the opportunity is substantial − this is good news for our people, this is good news forour patients and this is good news for our shareholders.

Sanjeev PandyaChief Executive Officer3 June 2015

Consolidated statement of comprehensive incomeFor the year ended 31 December 2014 ‐ Financials in £

2014 Restated 2013Revenue 106,378 68,916Cost of sales (202,679) (155,952)Gross (loss) (96,301) (87,036)Administrative expenses (5,553,728) (2,036,949)Impairment charge for investment and development properties (802,907) (1,049,357)Operating loss (6,452,936) (3,173,342)Finance income 499,281 8Finance costs (377,180) (257,812)Loss on ordinary activities before taxation (6,330,835) (3,431,146)Taxation ‐ ‐ Loss after taxation from continuing operations (6,330,835) (3,431,146)Discontinued operationsLoss for the year from discontinued operations (1,231,950) (539,351)Loss after discontinued operations (7,562,785) (3,970,496)Loss for the periodAttributable to equity shareholders (7,463,320) (3,936,291)Non‐controlling interests (99,465) (34,205)

(7,562,785) (3,970,496)Other comprehensive incomeExchange differences on translation of foreign operations ‐ ‐ Total comprehensive loss for the year net of tax (7,562,785) (3,970,496)

Total comprehensive loss attributable to:Equity shareholders (7,463,320) (3,936,291)Non‐controlling interests (99,465) (34,205)

(7,562,785) (3,970,496)Loss per ordinary shareBasic and dilutedContinuing operations (0.75)p (0.86)pDiscontinued operations (0.15)p (0.13)p

(0.89)p (0.99)p

Weighted average number of shares (000's) 848,376 401,624



Consolidated statement of financial positionAs at 31 December 2014 ‐ Financials in £

2014 Restated 2013Non‐current assetsInvestment properties 1,197,094 2,000,000Investments ‐ 6,020Intangible assets 9,217,854 8,233,314Plant and equipment 882,128 672,864

11,297,076 10,912,198Current AssetsTrade and other receivables 591,686 1,196,514Cash and cash equivalents 1,465,149 148,804Inventories 1,112,050 37,199

3,168,885 1,382,517Total assets 14,465,961 12,294,715

Current liabilitiesTrade and other payables (2,346,263) (2,196,141)Borrowings (987,832) (3,190,315)

(3,334,095) (5,386,456)Non‐current liabilitiesBorrowings ‐ ‐ Deferred tax ‐ ‐

‐ ‐ Total liabilities (3,334,095) (5,386,456)

Net assets 11,131,866 6,908,260

EquityShare capital 10,284,439 6,044,415Share premium reserve 14,658,924 6,874,185Share option reserve 2,020,681 1,478,091Reverse acquisition reserve 11,038,204 11,038,204Acquisition reserve 662,782 1,462,782Exchange movements reserve (369,291) (388,330)Accumulated losses (27,163,872) (19,601,087)Equity attributable to shareholders of the Parent Company 11,131,866 6,908,260Non‐controllinginterests ‐ ‐

Total equity funds 11,131,866 6,908,260

Consolidated statement of changes in equityFor the year ended 31 December 2014 ‐ Financials in £

EquityShare Reverse Exchange share‐ Non‐



Share Share options acquisition Acquisition movement Accumulated holderscontrolling capital premium reserve reserve reserve reserve losses interest interest Total

Balance at 01January 2013

2,594,104 1,665,998 581,333 11,038,204 ‐ (388,330) (15,630,591) (139,282) ‐ (139,282)

Loss for the year ‐ ‐ ‐ ‐ ‐ ‐ (3,936,291)(3,936,291) (34,205) (3,970,496)

Totalcomprehensiveincome ‐ ‐ ‐ ‐ ‐ ‐ (3,936,291) (3,936,291) (34,205) (3,970,496) Arising on issuesof ordinaryshares

1,739,583 1,197,417 ‐ ‐ ‐ ‐ ‐ 2,937,000 ‐ 2,937,000

Share basedpayment ‐other services

‐ ‐ 30,422 ‐ ‐ ‐ ‐ 30,422 ‐ 30,422

‐ acquisition ofADAM SA 1,710,728 4,010,770 786,185 ‐ ‐ ‐ ‐ 6,507,683 ‐ 6,507,683

Group provisionfor minorityinterest

‐ ‐ ‐ ‐ ‐ ‐ (34,205) (34,205) 34,205 ‐

Balance at 31December 2013

6,044,415 6,874,185 1,397,940 11,038,204 ‐ (388,330) (19,601,087) 5,365,327 ‐ 5,365,327

Prior year adj. ‐ ‐ 80,151 ‐ 1,462,782 ‐ ‐ 1,542,933 ‐ 1,542,933

Balance at 31December2013

6,044,415 6,874,185 1,478,091 11,038,204 1,462,782 (388,330) (19,601,087) 6,908,260 ‐ 6,908,260

Balance at 01January 2014

6,044,415 6,874,185 1,478,091 11,038,204 1,462,782 (388,330) (19,601,087) 6,908,260 ‐ 6,908,260

Loss for the year ‐ ‐ ‐ ‐ ‐ 19,039 (7,463,320) (7,444,281) (99,465) (7,543,746)

Totalcomprehensiveincome

‐ ‐ ‐ ‐ ‐ 19,039 (7,463,320) (7,444,281) (99,465) (7,543,746)

Arising on issuesof ordinaryshares

4,240,024 7,784,739 ‐ ‐ (800,000) ‐ ‐ 11,224,762 ‐ 11,224,762

Share basedpayment: ‐ cost of raisingfinance ‐ ‐ 30,598 ‐ ‐ ‐ ‐ 30,598 ‐ 30,598 ‐ employeeservices ‐ ‐ 468,696 ‐ ‐ ‐ ‐ 468,696 ‐ 468,696

‐ other services ‐ ‐ 43,296 ‐ ‐ ‐ ‐ 43,296 ‐ 43,296

Group provisionfor minorityinterest

‐ ‐ ‐ ‐ ‐ ‐ (99,465) (99,465) 99,465 ‐

Balance at 31December 2014

10,284,439 14,658,924 2,020,681 11,038,204 662,782 (369,291) (27,163,872) 11,131,866 ‐ 11,131,866

Consolidated statement of cash flowsFor the year ended 31 December 2014 ‐ Financials in £

2014 2013Cont'd Discont'd Group Cont'd Discont'd Group

Cash flow fromoperating activities

Loss after taxation (6,330,835) (1,231,950) (7,562,785) (3,431,146) (539,351) (3,970,497)

Adjustments:

Taxation ‐ ‐ ‐ ‐ ‐ ‐

Finance costs 377,180 ‐ 377,180 257,812 18,393 276,205



Finance income ‐ ‐ ‐ (8) ‐ (8)

Net portfolio losses /(gains) ‐ ‐ ‐ 4,310 (3,103) 1,207

Depreciation 117,616 ‐ 117,616 82,481 ‐ 82,481

Impairment chargefor investment anddevelopmentproperties

802,907 ‐ 802,907 1,049,357 ‐ 1,049,357

Waiver of mortgagedebt (499,273) ‐ (499,273) ‐ ‐ ‐Share basedpayments 542,590 ‐ 542,590 30,422 ‐ 30,422 Cash flows fromoperations beforechanges in workingcapital

(4,989,815) (1,231,950) (6,221,765) (2,006,772) (524,061) (2,530,833)

Changes ininventories (1,074,851) ‐ (1,074,851) (37,199) ‐ (37,199)Change in trade andother receivables 28,951 575,877 604,828 (95,672) 12,867 (82,805)Change in trade andother payables 234,066 77,659 311,725 (184,466) 227,936 43,470 Cash (used) /generated fromoperations

(5,801,649) (578,414) (6,380,063) (2,324,110) (283,258) (2,607,368)

Interest paid (178,278) ‐ (178,278) (330,937) ‐ (330,937) Cash flows fromoperating activities (5,979,927) (578,414) (6,558,341) (2,655,047) (283,258) (2,938,305)

Cash flows frominvesting activities:

Disposal of subsidiaryundertaking 6,020 ‐ 6,020 ‐ 1,245,000 1,245,000Cash acquired withsubsidiary ‐ ‐ ‐ 27,574 ‐ 27,574

Capital exp. onintangible assets

(984,540) ‐ (984,540) (188,349) ‐ (188,349)

Purchase of plant andequipment (326,880) ‐ (326,880) (543,765) ‐ (543,765)

Interest received ‐ ‐ ‐ 8 ‐ 8Cash flows frominvestment activities (1,305,400)

‐ (1,305,400) (704,532) 1,245,000 540,468

Cash flows fromfinancing activities:Equity share capitalraised 10,158,129 ‐ 10,158,129 2,437,000 ‐ 2,437,000Other short termloans (978,042) ‐ (978,042) 52,008 ‐ 52,008Intra Group CashTransfers (578,414) 578,414 ‐ 961,742 (961,742) ‐ Cash flows fromfinancing activities 8,601,673 578,414 9,180,087 3,450,750 (961,742) 2,489,008Decrease in cash/cashequivalents 1,316,346

‐ 1,316,346 91,171 ‐ 91,171

Cash/cash equivalents 148,803

148,803 57,632

57,632



at 01‐Jan‐14 ‐ ‐

Cash/cashequivalents at 31‐Dec‐14 1,465,149‐ 1,465,149 148,803 ‐ 148,803A copy of the full statutory financial statements will be available from the Company's websiteon today at www.advancedoncotherapy.com and is being posted to shareholders shortly. Annual General MeetingThe Annual General Meeting will be held at 10.00am BST on 29 June 2015 at the offices ofWesthouse Securities Limited, 110 Bishopsgate, London EC2N 4AY.

This information is provided by RNSThe company news service from the London Stock Exchange

END FR SSLFMEFISEDM

http://www.advancedoncotherapy.com/

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RNS Number : 0103P Advanced Oncotherapy PLC 03 · Reorganisation of business focused on the development of the LIGHT ... (CCL module ), Pyramid (beam ... quarter of the size and between