Angle PLC, a leading liquid-biopsy company based in the U.K., experienced a decline in its shares after announcing that its full-year revenue for 2023 is expected to more than double. However, the projected revenue falls short of market expectations. As a result, the company’s shares dropped by 15% to 11.0 pence, equivalent to a decrease of 2.0 pence.
The anticipated revenue for 2023 is estimated to reach £2.2 million, a significant increase from the £1.0 million reported in the previous year. Despite this growth, analysts had predicted a revenue of around £3.0 million, which Angle PLC failed to meet. Nevertheless, the company has secured new sales for 2023, amounting to approximately £3.3 million. However, a portion of these sales will only be recognized in 2024, providing an optimistic outlook for revenue growth.
Angle PLC expects a substantial revenue surge in 2024, with figures set to triple compared to the projected earnings for 2023. The company attributes this growth to an enhanced gross margin in the second half of the year, mainly resulting from a favorable product-service mix. Coupled with effective cost control measures, Angle PLC anticipates a year-end cash position of roughly £15 million, aligning with market expectations.
In an effort to streamline operations, Angle PLC plans to close its U.S. clinical laboratory and focus its operations exclusively within the United Kingdom. While this strategic shift will lead to non-cash impairments of approximately £500,000 and one-off cash costs of around £700,000, the company expects long-term benefits. These adjustments are projected to contribute to an operating loss of approximately £21 million in 2023, an improvement from the £24.2 million loss incurred the previous year. Additionally, the company anticipates cost savings of around £3 million annually starting in 2024.
Frequently Asked Questions (FAQ)
1. What is Angle PLC?
Angle PLC is a liquid-biopsy company based in the United Kingdom. Liquid biopsies involve the collection and analysis of biological samples, such as blood, to identify and monitor diseases or conditions.
2. Why did Angle PLC’s shares decline?
Despite projecting significant revenue growth for 2023, Angle PLC’s estimated figures fell below market expectations. As a result, shareholders expressed disappointment, leading to a decrease in the company’s share value.
3. How does Angle PLC plan to improve its financial position?
Angle PLC aims to optimize its financial position through a strategic shift that involves closing its U.S. clinical laboratory and focusing operations in the U.K. This streamlining effort is expected to deliver long-term cost savings, contributing to improved financial performance.
4. What are the growth prospects for Angle PLC in 2024?
Angle PLC foresees a significant revenue increase in 2024, with expectations of tripling its earnings compared to the projected figures for 2023. This growth is attributed to a favorable product-service mix and enhanced gross margin.
Sources:
- Information acquired from Angle PLC’s official press release
- Market data and industry analysis provided by reputable financial sources