Annual Financial Report

About this update from Physiomics Plc

29 September 2025   Physiomics plc ("Physiomics" or the "Company")   Final Results for the year ended 30 June 2025   Physiomics plc (AIM: PYC), a leading mathematical modelling, data science and biostatistics company supporting the development of new therapeutics and personalised medicine solutions, is pleased to announce its audited results for its financial year ended 30 June 2025.   Financial Highlights Total income (revenue and grant income) increased 46% to £834,156 (2024: £570,561), meeting market expectations The operating loss decreased 32% to £457,791 (2024: £670,816) The loss after taxation decreased 32% to £415,254 (2024: £609,352) Cash and cash equivalents at 30 June 2025 of £461,242 (30 June 2024: £191,072) At 30 June 2025, the surplus of shareholders' funds was £692,171 (30 June 2024: £282,527) The Company continues to build its pipeline with the average total value of contract wins over FY24 and FY25 averaging over £1 million per annum, a 63% increase on the yearly average of the previous five years The Company started the new financial year ending 30 June 2026 (FY26) with approximately £594k of contracted revenue that is projected to be recognised within the year. This compares with approximately £500k worth of contracts carried forward from the year ended 30 June 2024 (FY24) to the year ended 30 June 2025 (FY25), a 19% year-on-year increase The Board expects that £60k worth of Grant Income will be recognised in FY26 to fund the Personalised Medicine Initiative Successful completion of two fundraises (each fundraise comprising a placing and a WRAP Retail Offer), raising gross £406,417 (9 July 2024) and gross £500,000 (18 February 2025), primarily for use in funding key business growth initiatives   Operational highlights Appointment of Head of Quantitative Pharmacology and Data Science, Dr Mark Davies in November 2024 and appointment of Head of Biometrics, Jesse Thissen commencing in July 2025 Official launch of the Biometrics service line and announcement of the Company's first two Biometrics contracts worth £111k in aggregate Expansion of services into new therapeutic areas: 50% of projects delivered in FY25 were in therapeutic areas outside of oncology, compared to an average of 5% over the previous three years. Diversification of client base: 31% of all contract awards in FY25 were from new clients, compared to 17% over the prior six years. Notable follow-on contracts with Numab Therapeutics and Cancer Research UK Clinical Trial Approval of grant funded PREDICT-ONC trial with patient recruitment reaching 20% of the 100 patient target. The Innovate UK and Office for Life Science funded trial aims to generate the data required to advance the development of the Company's G-CSF dosing tool. The Company will receive £137,376 out of the total £570,651 grant award Publication of three peer-reviewed scientific articles with Merck KGaA, Astellas Inc and Ankyra Therapeutics Inc., reflecting the impact the Company's expertise and tools has on supporting leading biotechnology and pharmaceutical companies with their drug development efforts   Post period end Implementation of the Company's Personalised Dosing Software onto DoseMe's newly launched platform and expansion of the partnership with DoseMe to explore the development of Dosing Software for new therapies Two additional contract awards, one with Numab Therapeutics and one with a large UK based biotech client at the forefront of AI-driven drug development   Dr Peter Sargent, CEO of Physiomics, commented: "Following our strategic review early in 2024, the Company has made significant progress across its key growth initiatives. Changes and investments made initially resulted in record levels of contract wins in the year ended 31 June 2024 and I'm delighted to report that this momentum has been maintained in the year ended 30 June 2025 with total income growth of 46% year-on-year. Off the back of this, we're starting the current financial year ending 30 June 2026 with a record level of contracted projects, a new biometrics service-line already generating revenue, and real progress across our personalised medicine dosing software initiative." For more information about Physiomics and its services, please visit www.physiomics.co.uk .   Enquiries:   Physiomics plc Dr Peter Sargent, CEO +44 (0)1235 841575   Hybridan LLP (Broker) Claire Louise Noyce +44 (0) 203 764 2341   Strand Hanson Ltd (NOMAD) James Dance & James Bellman +44 (0)20 7409 3494     Notes to Editor   About Physiomics   Physiomics plc combines expertise across Modelling & Simulation, Biostatistics, Data Science and Bioinformatics, together with deep biology expertise, to help biotech and pharma companies streamline their drug development journeys. Our approach is to help derive insight from all relevant and often disparate data in order to de-risk decision making and optimise research design across discovery, pre-clinical and clinical studies. Through use of cutting-edge computational tools, bespoke models and our proprietary Virtual Tumour technology, the Physiomics team has informed the development of over 140 commercial projects, with over 125 targets and drugs modelled. Clients include Merck KGaA, Astellas, Bicycle Therapeutics, Numab Therapeutics & CRUK.     Chairman and Chief Executive Officer's Statement Overview The Company has continued to advance the operating model introduced by CEO Dr Peter Sargent after his appointment and strategic review in early 2024. While these changes led to record contract awards for the financial year ending 30 June 2024 (FY24), the full impact of these strategic changes became clear in the year of this report (FY25), with total income rising 46% year-on-year and the loss after tax reduced by 32% due to increased revenue and cost control despite the reduction in tax credit. The Company's pipeline is robust, with average annual contract wins in FY24 and FY25 exceeding £1million, representing a 63% rise on the previous five-year average. At the start of the current financial year ending 30 June 2026 (FY26), the Company had approximately £594k in contracted revenue projected to be recognised within the year, a 19% increase compared to the £500k brought forward from FY24. Additional revenue of £59k has also been contracted for financial year ending 30 June 2027 (FY27). The Company's core focus continues to be its Modelling and Simulation service-line, which accounted for all consultancy revenue in FY25. At the start of FY25, the business aimed to further diversify its client base, expand into new therapeutic areas, and increase conversion rate of pipeline opportunities to contract awards. As a result, Modelling and Simulation revenue grew 44% compared with FY24. New clients represented 31% of contracts in FY25 (up from an average of 17% over the prior six years) and total new client contract value rose 23% year-on-year. Projects outside oncology comprised 50% of FY25 projects (5% average over the preceding three years), while the conversion rate improved by approximately 30% compared to FY24. In parallel to growing this service line, the Company remains committed to maintaining a high-quality service whilst offering its clients a bespoke and flexible solution. As a result, 42% of clients contract with the Company more than once, with 18% contracting more than three times. The business still maintains long lasting relationships with several of its clients with FY25 seeing new contract awards with CRUK and Numab Therapeutics. The Company officially launched its Biometrics service-line in FY25, enabling it to start offering its clients Biostatistics and Statistical Programming consulting solutions. The initial investment was made in a variety of go-to-market activities, including an update of the website and marketing materials, along with several client engagement campaigns. During the year, the Company announced the recruitment of a new Head of Biometrics, Jesse Thissen, as well as the signing of the Company's first two Biometrics contracts. Jesse, who officially started in July 2025, brings significant Biometrics expertise, having worked across Big Pharma (AstraZeneca), Biotech, Consumer Health and Contract Research Organisations. The two Biometrics contracts have a total value of £111k, providing biostatistical consulting and statistical programming services to a UK headquartered clinical-stage biopharmaceutical company. The Head of Biometrics has responsibility for delivering these initial two contracts and will be instrumental in supporting the Company to continue to build this service from both an operational and go-to-market perspective. The Company has developed a pool of expert Biometrics contractors, enabling flexible operations for future contracts without requiring upfront investment in additional staff. In addition to growing this service-line organically, the Company continues to explore strategic options to accelerate its growth. The Company is advancing its Personalised Dosing Initiative by generating additional calibration and validation data through the Innovate UK funded PREDICT-ONC project, as well as working on the implementation of the dosing software onto the DoseMeRx platform as a potential market pathway. In January 2025, the Company announced that the PREDICT-ONC project received both regulatory and ethical approval, enabling its partner, Blackpool Teaching Hospitals NHS Foundation Trust, to begin recruiting breast cancer patients onto the trial. Unavoidable delays in clinical trial approval have extended project timelines into early 2026; however, recruitment is progressing well with additional clinical sites being explored to accelerate recruitment further. After several rounds of software deployment, evaluation, and debugging, the Company also reported the implementation of its personalised dosing software on DoseMe's latest platform. This platform enables clinicians and healthcare providers access to the software on a research-only basis allowing for human factor evaluation and further validation data collection. FY25 concluded with Physiomics and DoseMe signing non-binding Heads of Terms with the intention of expanding their partnership beyond the Company's current personalised dosing software. The expanded partnership aims to explore the development of new dosing software across a variety of therapeutic areas. Financial Review The Company's total income for the year ended 30 June 2025 (FY25) is £834,156 and its loss after tax is £415,254. This represents a 46% increase in total income and a 32% decrease in loss after tax when compared to the financial year ended 30 June 2024 (FY24). Both metrics are in line with market expectations for the year, indicating an upward trend in business performance and cost management. This trend is highlighted further by the Company's sales pipeline performance, with the average total value of contract wins over FY24 and FY25 reaching over £1 million per year, a 63% increase on the yearly average over the previous five years. The Company has started the current financial year ending 30 June 2026 (FY26) with approximately £594k of contracted revenue (a 19% increase compared to the £500k brought forward from FY24) and £60k of grant income that are projected to be recognised within the year. At 30 June 2025, the surplus of shareholders' funds was £692,171 (30 June 2024: £282,527) of which cash and cash equivalents were £461,242 (30 June 2024: £191,072).  The Company completed two fundraises during FY25, raising gross proceeds of £406,417 (9 July 2024) and gross £500,000 (18 February 2025), to support investment across its key growth initiatives. This includes recruitment of further technical team members to accelerate conversion of the pipeline and expansion of services, further investment in business development and marketing, exploration of strategic options to accelerate growth of the biometrics service-line and deployment of the Personalised Medicine Tool onto the DoseMeRx platform. Staff Building upon the strategic review conducted in early 2024, the Company invested in several key hires in FY25. This included the appointment of Dr Mark Davies, Head of Quantitative Pharmacology and Data Science (November 2024) and Mr Jesse Thissen, Head of Biometrics (June 2025). Both individuals bring significant technical and commercial expertise in their respective areas and will be instrumental in the future direction and growth of the Company. Staff utilisation rates are regularly reviewed as part of the Company's workforce planning process and the Company would like to thank all its staff for their continuing hard work and commitment during the year.   Outlook The biopharmaceutical market in which the Company operates is currently facing significant headwinds. Biotech companies and other drug development organisations are continuing to experience difficulties in securing capital for research and development programmes, while changes in the geopolitical environment are leading to significant uncertainty in the market, especially on pricing and cross-border trades. The continuing tight financing environment has led many biopharma companies to restructure and reduce their workforce. To adapt to these market pressures, the Company continues its transformative journey following the strategic review of Physiomics' operating model early in 2024. The immediate impact of these changes and shift in investment focus was reflected in record levels of contract wins in FY24. In FY25 momentum continued with total Income increasing by approximately 46% and loss after tax reducing by approximately 32% compared to FY24, meeting market expectations. The business also maintained high levels of contract wins, with the average total value of contract wins over FY24 and FY25 exceeding £1m per year, a 63% increase on the yearly average over the previous five years. Starting FY26, the Company continues this momentum, taking forward approximately £653k of contracted consultancy revenues (£594k projected to be recognised in FY26) and approximately £60k worth of grant income into FY26.  Furthermore, the Company enters FY26 with a robust late-stage sales pipeline and notable advancements in its key growth initiatives, including the recently launched Biometrics Service line and expansion into new therapeutic areas. Whilst market conditions are set to remain challenging at least in the short-term, the demand for Model-Informed Drug Development and Biometrics services is still set to increase. The Board is confident that the Company will capitalise on these opportunities along with the strong foundation it has established to sustain positive momentum throughout FY26.     Strategic Report Principal activities Physiomics is engaged in providing consulting services to biopharmaceutical companies and research institutes in the areas of outsourced Modelling and Simulation (Quantitative Pharmacology), Biometrics and Data Science (Bioinformatics), using a combination of industry standard technologies and its own proprietary technology platform, Virtual Tumour™.  In simple terms, this means helping drug developers accelerate the development of their therapies towards market by supporting them to gain insights from their data that will better inform their research decisions and support regulatory review. Modelling, Simulation and Data Science Until recently, the Company focused primarily on providing modelling, simulation, and data science services to support discovery, preclinical, and clinical drug development activities. Fee-for-service revenue is generated by delivering insights to clients through advanced modelling techniques and data science approaches. The Company leverages its proprietary Virtual Tumour™ predictive software alongside industry-standard tools such as MATLAB and also develops customised models. In recent years, enhancements to Virtual Tumour™ have been made to address specialised areas including immuno-oncology, DNA damage repair inhibitors, radiation therapy, and other fields of expertise. Many projects necessitate a combination of methodologies to deliver optimal insights for clients. Client organisations place significant value on the knowledge and experience of our team when evaluating data and designing new programmes. The team's exposure to, and growing proficiency in, a diverse range of therapeutic areas and treatment modalities continues to attract both new and existing clients. The Company leverages expertise in discovery, preclinical, and clinical pharmaceutical R&D to help clients efficiently extract insights from data through analysis, visualisation, interpretation, and mathematical modelling. This supports clients throughout drug development in optimising treatments, selecting the best targets, drugs, dosages, timing, and combinations. The Company adds significant value during early drug development, especially when moving from pre-clinical to first-in-human studies, by assisting with clinical trial design and regulatory justification. Recent projects that demonstrate these capabilities include: •          supporting a Swiss-based Biotech company's inflammation pipeline with the design and selection of a lead drug candidate to take forward into clinical trials; •          partnering with a UK-based cancer charity to assist an oncology-focused biotech company in using data from its preclinical studies to identify the suitable starting dose and dose-range for investigation in their first human study; •          supporting a big pharma company in optimising the balance of efficacy and toxicity for a variety of complex cancer regimens combining different drug modalities - including chemotherapy and targeted therapies; •          providing analytical support to a biotechnology company developing therapeutics for Rheumatoid Arthritis by modelling preclinical and First-in-Human trial data. This work aims to inform population-based dosing strategies in preparation for their forthcoming Phase 2 clinical trial. Biometrics FY25 saw the Company officially launching its new Biometrics service-line. Biometrics is an umbrella term incorporating Biostatistics, Statistical Programming, and Data Management: all essential components of clinical research. It plays a pivotal role in the setup, conduct, and reporting of clinical trials, ensuring studies are well-designed so that any effect of the therapy can be detected, data is accurately collected and analysed, and results are interpreted correctly. Regulatory authorities across the world require robust biometrics practices to approve new drugs. Biometrics typically incorporates three main areas: 1.   Biostatistics: Supporting the design of clinical studies and analysis of resulting data 2.   Statistical Programming: Use of programming language to process, analyse and visualise clinical data 3.   Data Management: Setup and oversight of the collection, entry, and validation of clinical trial data   The strategic rationale for developing Biometrics service capabilities was three-fold; first, the application of Modelling & Simulation and Biometrics in drug development overlaps, with the output of the former often being a key input to the latter, allowing for natural follow-on work to be offered to clients. Second, Biometrics is a necessary component of the setup, conduct and reporting of any interventional clinical trial, from Phase 1 through to Phase 4, regardless of the therapeutic area. This opens up a significant market for the Company, giving greater opportunity to scale. Finally, with both service lines utilising the same business model and similar expertise across mathematics and data science, this allows the Company to operate flexible staffing across service lines to meet demand and maximise utilisation. In addition to announcing the official launch of the Biometrics Service-Line in FY25, the Company also announced the recruitment of the new Head of Biometrics as well as signing its first ever Biometrics contracts. These two new contracts are with a UK headquartered clinical-stage biopharmaceutical company developing immunotherapies that target a range of diseases. In support of two of the client's active clinical programmes, the Company is providing Biostatistical and Statistical Programming services.   Personalised Medicine In addition to its consultancy service business, the Company has continued to develop its technology for use in the field of personalised medicine. Physiomics' approach is to apply its technology and expertise in interpreting pre-clinical and clinical cancer data to help predict when to treat patients and with what dose of drug. This approach relies on advanced analytical techniques, many of which (such as machine learning and neural networks) are in the field of artificial intelligence (AI). To date this work has been funded by three Innovate UK grants and one NIHR grant and has not drawn materially on shareholder funds. The Company completed its observational "PARTNER" study at Portsmouth University Hospitals NHS Trust which validated the ability of the software to predict levels of the adverse drug effect, neutropenia. While clinicians found this interesting, the software's potential to guide G-CSF usage (an expensive biological drug to treat neutropenia) was identified as having a potential greater commercial value. Funded through the latest Innovate UK grant award announced in November 2023, the Company has kicked off project 'PREDICT-ONC' in partnership with UK based start-up Beyond Blood Diagnostics and Blackpool Teaching Hospital NHS Foundation Trust to generate data that will help further develop and validate the software's use to guide dosing of G-CSF. In January 2025, the Company reported that the PREDICT-ONC project received regulatory and ethical approval, allowing its partner Blackpool Teaching Hospitals NHS Foundation Trust to begin recruiting breast cancer patients for the trial. Although recruitment is underway, delays affecting the commencement of the trial, which were beyond the Company's control, have resulted in the originally scheduled end date of October 2025 being extended to March 2026. The partners are considering various approaches to accelerate the project, such as identifying additional clinical sites, increasing data collection per patient, and seeking alternative data sources outside the trial. The Company recently announced that following several iterations of software deployment, evaluation and debugging, it had successfully implemented its dosing software onto its partner DoseMe's latest platform. This now allows the tool to be made available to clinicians and health care providers on a research-only basis allowing for important human factor evaluation and additional validation data to be generated. The fact that the DoseMeRx platform is already used by clinicians and practitioners worldwide provides a potential route to market for the Company. The Company announced in July 2025 that it had agreed non-binding Heads of Terms with DoseMe Inc with the intention of expanding their partnership beyond the Company's current personalised dosing software. The partnerships aim is to explore the co-development of new dosing software in oncology or other therapeutic areas. Business Model The Company's core commercial activity centres on providing advanced Modelling & Simulation and Biometrics consulting services. These specialised offerings are underpinned by significant internal expertise and proprietary tools, including the Company's exclusive Virtual Tumour™ pre-clinical and clinical models. Physiomics primarily operates on a fee-for-service model; however, the strategy includes remaining open to alternative arrangements such as risk-sharing and collaborative partnerships.  Although the Company continues to explore alternative options, it is envisaged that fee-for-service consulting will continue to be the main driver of revenues in the short to medium term. The Company aims to generate additional income in the medium to long term from its Personalised Medicine dosing software initiatives, as well as explore new opportunities that M&A could bring, including in new markets or therapeutic areas that would be complimentary.   Key strengths The consulting business is the core of the Company's commercial activity and we believe that it is unique in a number of respects: •          Physiomics' expertise and tools can be applied across multiple therapeutic areas. The team has accumulated over 180 years of combined experience in the development of new drugs through quantitative pharmacology, mathematical modelling, biostatistics and disease biology. Over the Company's lifetime it has completed over 138 projects covering hundreds of targets, cell lines and drugs. A large percentage of these projects have focussed on oncology therapies; however, the Company is increasingly working in other therapeutic areas with 50% of projects delivered in the financial year ending 30 June 2025 focused on therapeutic areas outside oncology, compared to an average of 5% over the previous three years. The Company is currently supporting the development of a range of new therapies, including those focused on infectious disease, rheumatoid arthritis and dermatology. •          Physiomics' uses a range of modelling, bioinformatics and biometrics tools, including a proprietary in-house platform called Virtual Tumour™. Although the team can take advantage of all commonly used modelling, simulation, data analysis and biometrics techniques, it also has access to an internally developed platform that is uniquely useful when considering novel cancer drugs. •          The team possesses specialised expertise in the sourcing, curation, and analysis of healthcare data. Whether the data originates from clients or is drawn from public sources, Physiomics' professionals are skilled in data analysis, coding, and advanced machine learning (AI) methods that form the foundation of the modelling and biometric services we deliver on behalf of valued clients. •          The Company differentiates itself to its competitors by offering flexible, bespoke services that best answer our clients' questions and fit in with their timelines. Physiomics' strategy Physiomics' strategy is to grow its consulting business across Modelling & Simulation and Biometrics while actively applying this expertise in the development of personalised medicine assets.  In order to grow the business and become cash generative, the main strategic aims are as follows: •          Continue to expand and diversify the core consulting business (Modelling & Simulation) both through repeat business and through the acquisition of new clients. •          Leverage the momentum from the recent launch of the Biometrics services line and the initial contract awards by further investing in operational and go-to-market activities necessary to expand the pipeline and secure additional contracts. In the short-term, the focus will remain on building capabilities and pipeline across Biostatistics and Statistical Programming, with a medium to long term aspiration to develop data management solutions.  •          In parallel to driving organic growth across both consulting service-lines, explore strategic options to accelerate growth - either through partnerships or business acquisition. •          Supplement the core consulting revenues through grant funded projects, especially in the field of personalised medicine (CRUK, Innovate UK, NIHR etc). •          Pursue the development of new, complementary business areas including personalised medicine and additional service offerings in drug discovery and development to enhance long-term value for the organisation and shareholders. Obligations under s172 of the Companies Act The Directors are mindful of their obligations under s172(1) of the Companies Act 2006 to act in good faith to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the following:   Principle Company's actions The likely consequences of any decision in the long term. The Company has a long-term vision as set out in this report. The interests of the Company's employees. The Company values its employees and implements training, offers development opportunities and has in place appropriate incentive programs to support their retention. The need to foster the Company's business relationships with suppliers, customers and others. The Company spends significant effort in reaching out to new and existing customers and in soliciting their feedback following engagements. The Company also prides itself on having good relationships with all key suppliers. The impact of the Company's operations on the community and the environment. The Company's operations have minimal impact on the community and environment. The desirability of the Company maintaining a reputation for high standards of business conduct. The Company maintains a high standard of business ethics, complying with the QCA code (updated version II) for corporate governance. The need to act fairly as between members of the Company. The Company treats all members equitably and attempts to ensure a timely and accurate flow of information to all members. Review of Business The Company is principally engaged in providing consulting services to pharmaceutical companies in the areas of outsourced Modelling and Simulation (Model-Informed Drug Development) and Biometrics. •          Total income (revenue and grant income) increased 46% to £834,156 (2024: £570,561) •          The operating loss decreased 32% to £457,791 (2024: £670,816) •          The loss after taxation decreased 32% to £415,254 (2024: £609,352) •          At 30 June 2025, the surplus of shareholders' funds was £692,171 (30 June 2024: £282,527) •          Cash and cash equivalents at 30 June 2025 of £461,242 (30 June 2024: £191,072) Consulting Business Physiomics' consulting business is at the heart of its offering to clients.  The Company uses a range of techniques and tools, including its proprietary Virtual Tumour™ software platform, to support its clients derive unique insights from their data in order to accelerate and derisk their drug development efforts. It is a combination of Physiomics' technology and the experience of the team that enables Physiomics' to be able to deliver clients both a targeted product offering that meets their needs whilst at the same time delivering value for money and flexibility. The Company believes that it is unique in offering a combination of: •          Deep experience and knowledge of disease biology - historically oncology but expanding rapidly into other therapeutic areas; •          Data-driven approaches to supporting clients' R&D projects, deriving insights from often complex and disparate data sets; and •          A level of flexibility and responsiveness that is not typically found in larger organisations. Physiomics' has continued to develop its brand through a variety of marketing and business development activities including: •          Engagement of external social media, marketing and public relations expertise to advise and support the Head of Business Development and service-line heads in the execution of key marketing initiatives; •          Publication of thought leadership materials, including two blog posts in partnership with Weatherden, a clinical development consultancy based in the UK;  •          Publication of three peer reviewed scientific articles in collaboration with Merck KGaA, Astellas Inc and Ankyra Therapeutics Inc.; •          Continued use of social media to engage with current and potential new clients; •          Attendance at key conferences such as this year (FY25) at ASCPT where Merck KGaA and Physiomics presented a poster, sponsoring NextGen Biomed where Dr Mark Davies gave a presentation, BIOEurope, Bio International, DDR Inhibitors Summit, PKUK, PAGE, QSP-UK and ELRIG; and •          A refresh of Physiomics' website to refine its messaging and including the new Biometrics and Data Sciences services. This also included a recent Search Engine Optimisation (SEO) audit and optimisation exercise. The Company continues to be successful in attracting repeat business this year from clients such as Numab Therapeutics and Cancer Research UK, whilst also driving business with new clients. The average total value of contract wins over FY24 and FY25 is over £1 million per year, a 63% increase on the yearly average over the previous five years. Since incorporation, 42% of all clients contract with the Company more than once. The Company's clients in this financial year have been located in the European Union, UK, and Switzerland.  In terms of the mix of work, Physiomics' continues to work across the full spectrum of R&D from discovery to development. Even though the primary focus is still on translational projects involving assets entering clinical development for the first time, the Company is also delivering on projects supporting R&D activities as far upstream as discovery in areas such as target identification, as well as projects outside of oncology, such as dermatology, rheumatoid arthritis, and infection diseases. Physiomics' is also supporting clients across a wide array of disease modalities, including but not limited to antibody drug conjugates, radiopharmaceuticals, DNA damage repair agents and combination therapies. FY25 also saw the official launch of the Company's biometrics services. Personalised Medicine The personalised medicine and digital health space continues to generate significant interest from both investors and healthcare systems. Many start-ups in this area focus on the use of genetic markers or the pattern-recognition capabilities of artificial intelligence applications.  However, Physiomics' believes that there is a significant opportunity in the analysis of existing clinical data to identify better ways to treat patients using existing drugs and procedures. The Company has developed a tool for personalised dosing, funded mainly by three Innovate UK and one NIHR grant as noted above. An expanded partnership with DoseMe Inc intends to explore opportunities for developing new personalised dosing software beyond the current initiative. Strategic and financial performance indicators The Company is focused on the creation of long-term value for its shareholders and becoming cash generative. The Directors consider that the key performance indicators are those that communicate the financial performance and strength of the Company as a whole: these being revenue, profitability, and shareholders' funds, as well as indicators of future performance: being value of new contracts won and contracted future revenue. Pipeline value and conversion rate is also monitored by the Board monthly. Total revenues during the last six financial years (year ended June 2020 to year ended June 2025) exceed the total revenues of the first eighteen accounting periods (from incorporation to June 2019). Over the past three financial years, total income has risen by 38%, from £606k in FY23 to £834k in FY25. During this time frame, the Company effectively managed operating expenses, keeping increases in line with inflation-costs rose by 4% from FY24 to FY25 and by 5% from FY23 to FY24. As a result, the loss after tax for FY25 was reduced by 32% compared to FY24 and by 13% compared to FY23, indicating a significant improvement throughout the period. The net assets as at 30 June 2025 of £692k have fallen from their peak at June 2020 of £1,315k, primarily due to strong market head winds in FY23 and FY24, along with increased investment in people and technology needed to drive future growth. The average total value of contract wins over FY24 and FY25 reached a record high of over £1 million per year, a 63% increase on the yearly average over the previous five years. The Company started FY26 with approx. £594k of contracted revenue that is projected to be recognised within the year. This compares to approximately £500k worth of contracts carried forward from FY24 into FY25, a 19% year-on-year increase.     Principal Risks The Company faces a number of risks and maintains a risk register that identifies specific risks, their potential impact, their likelihood and mitigating actions.  This register is updated as required and on an annual basis as a minimum. Selected key risks are addressed below.   Risk Description Mitigation Loss of major customer   The business has a high dependence on repeat business.  This leads to the risk that these existing customers could significantly reduce or cancel its contracts with the Company. For the year ending 30 June 2025, new contracts from repeat clients contributed to 64% of the value of all contracts won in that period, with 36% of the value coming from contracts signed with new clients. The total value of new client contracts has continued to increase year on year since FY23, with total value from new clients in FY25 being 515% higher than FY23 and 23% higher than FY24. Dependence on a single key client dropped from 80% of revenue in FY19 to 37% in FY25. Competition   Physiomics operates in a competitive environment which could lead to pricing pressure.  Whilst the business uses its own proprietary technology a competitor could attempt to replicate its Virtual Tumour™ technology. The Company continued to expand and diversify its services. FY24 and FY25 has seen the expansion of the Modelling and Simulation service-line into therapeutic areas outside oncology and supporting clients further upstream in the drug development cycle in discovery. In addition, the Company has established a second service-line, Biometrics, which allows the business to provide clients a much broader service, enabling access to a much larger market. The Company also continues to assess its pricing to ensure it remains competitive and has increased its rates on average by 14% per year over the last two years, whilst reaching a total value of contract wins of over £1m per year average for FY24 and FY25, 63% higher on the yearly average over the previous five years. Utilising feedback from clients and competitor intelligence, the Company continues to evolve its Virtual Tumour™ platform to improve the scope and applicability of the technology, adding further value to its clients and differentiating the service from its competitors. The Company continues to develop its personalised medicine offering that once developed will provide a potential new source of income beyond consultancy services. Personnel & skills   The success and future growth of the Company is in part dependent on the continued performance and delivery of certain Directors, managers, key staff and contractors.  The Company operates in a highly specialised field where there is strong competition for required skills and talent. Key personnel leaving the Company could lead to a short-term reduced capacity to service client projects. The Company seeks to recruit, develop, and manage talent on a continuous basis and has built a network of contracted specialists who can provide additional resource when required. In order to attract the best talent, the Company offers competitive packages to its staff which include a share option scheme, private medical insurance and flexible working. A collegiate working environment and opportunities for personal and professional development also help to maintain staff satisfaction. Over the course of this financial year, the Company has successfully attracted and recruited a Head of Biometrics, Head of Quantitative Pharmacology and Data Science, a Quantitative Pharmacology Scientist and a Principal Consultant Clinical Pharmacology contractor.   Financial     The financial risks faced by the Company include the ability to cover working capital needs, raise sufficient funds to support the Company through to profitability and failure to secure further contracts. The process of winning major contracts is typically protracted and the Company operates in a competitive environment.  This means the Company often faces significant uncertainties in its cash flow. The Board addresses financial uncertainties by monitoring actual performance against internal projections and responding to significant variances.  The Company also employs tight cost controls across the business and has from time to time raised funds from investors. The Company seeks to ensure cash availability for working capital purposes and to reduce credit risk arising from cash and short-term deposits with banks and other financial institutions by holding deposits with an institution with a medium grade credit rating or better. In July 2024 and February 2025, the Company completed two fundraises totalling £906k gross to support expansion of the core Modelling and Simulation service-line, and continued development of Biometrics capability and of its personalised medicine software. Regulation Changes   The Company's customers are predominately pharmaceutical and biotechnology companies who require outsourced quantitative pharmacology and biometrics services.  There is a risk that the business model is impacted by future changes in regulations in the medical and pharmaceutical industry. The Company regularly reviews regulations changes through proactive discussions with key industry officials, professional advisers and regulatory bodies where appropriate. Major agencies such as the FDA are actively promoting the use of Modelling and Simulation (Quantitative Pharmacology) and issue advisory papers which set out their thinking. Biometrics, which includes Biostatistics, Statistical Programming and Data Management are required under international regulation (ICH E9). This means that all interventional clinical trials setup and run across major markets (including the US, EU, UK, Switzerland, Japan, South Korea, and Australia.) Systems & infrastructure   The Company is dependent on its IT technical infrastructure and systems for the management of its core operations and research and development programmes. Continuity of access to data and the integrity of this data is maintained through the implementation of a system of data storage, offsite backup, and monitoring of key coding and modelling data.  The Company maintains a variety of systems that monitor system threats, along with utilisation encrypted data storage and multi-factor authentication. Prevailing economic conditions   Biotech companies and other drug development organisations, including many of Physiomics' clients, are continuing to experience difficulties in securing capital for research and development programmes, while changes in the geopolitical environment are leading to significant uncertainty in the market, especially on pricing and cross-border trades. The continuing tight financing environment has led to many biopharma companies to restructure and reduce their workforce.   Following the drop in revenues in FY23 and FY24 the Company has started to recover back to revenue levels seen previously. In addition, the Company is now achieving record levels of sales, with average total value of contract wins over FY24 and FY25 being 63% higher than the previous five years. The Company is also building momentum across its key growth initiatives, including the newly launched Biometrics service-line. The Company believes that this new service-line will be instrumental in efforts to scale the business and growth of future revenues. Additional new service lines are being explored by the Company to allow access to broader markets.     Directors' Report The Directors submit their report and the audited financial statements of Physiomics Plc for the year ended 30 June 2025. Results There was a loss for the year after taxation amounting to £415,254 (2024 loss after tax: £609,352). In view of accumulated losses, and given the stage of the Company's development, the Directors are unable to recommend the payment of a dividend. Directors The Directors who served during the year were: Dr J S Millen                                                      Dr T H Corn Mr S Kumar Dr P J Sargent Statement of Directors' responsibilities The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year.  Under that law the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by United Kingdom (UK).  Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the financial performance and cash flows of the Company for that year. The financial statements are required by law, and IFRS as adopted by the UK, to give a true and fair view of the state of affairs of the Company.  In preparing the Company financial statements, the Directors are required to: a.   select suitable accounting policies and then apply them consistently; b.   make judgements and estimates that are reasonable and prudent; c.   state whether in preparation of the financial statements the Company has complied with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements; and d.   prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are also responsible for the maintenance and integrity of the Physiomics Plc website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.         Substantial shareholdings The Company has been informed, based on a beneficial ownership search carried out by its registrar, that as at 15 August 2025, the following individual shareholders had over 3% interests in the issued ordinary shares of the Company. Shares (m) Holding % Mr Ryan Mancrief 14,234,711 4.69% On 15 August 2025, Dr Jim Millen held 1,884,393 ordinary shares (a holding percentage of 0.62%). Dr Peter Sargent held 459,090 ordinary shares (a holding percentage of 0.15%). Directors' remuneration Details of Directors' remuneration in the year ended 30 June 2025 is set out below. Dr C D Chassagnole resigned as a Director on 31 May 2024.   Emoluments Bonus Benefits Pension Contributions Total 2025 Total 2024 £ £ £ £ £ £ Dr J S Millen 38,000 - 2,768 - 40,768 67,433 Dr C D Chassagnole - - - - - 80,465 Mr S Kumar 20,000 - - - 20,000   20,000 Dr T H Corn 20,000 - - - 20,000 20,000 Dr P J Sargent 137,500 15,000 511 11,600 164,111 78,746 Total 215,500 15,000 3,279 11,600 245,379 266,644   Dr P J Sargent's base salary of £145,000 is reduced by a £7,500 salary sacrifice to £137,500, with his £11,600 pension including the sacrificed amount. Corporate governance Physiomics Plc has chosen to comply with the Quoted Companies Alliance ("QCA") Corporate Governance Code (updated and amended version II).  High standards of corporate governance are a priority for the Board, and details of how Physiomics addresses key governance principles defined in the QCA code are set out below.   1.   Establish a strategy and business model which promote long-term value for shareholders The Company's business model is focused on helping big pharma and biotech clients utilise their data, or data in the public domain, to derive insights that support the design and optimisation of their R&D. These insights support clients reduce the number of experimental permutations needed whilst improving robustness in design and conduct of experiments. This benefits the clients in helping to accelerate and de-risk drug development programmes, reduce costs, whilst fulfilling the necessary regulatory requirements. The Company operates mainly on a fee for service basis but is also open to other arrangements such as risk-based milestones and licensing although these have not formed a material part of the Company's revenues historically.  In addition to its commercial business the Company engages in grant driven projects which do not generate profit but which provide valuable "paid for" R&D which can then be leveraged through the Company's commercial activities.  The Company aims to deliver shareholder value by increasing the number and value of its commercial clients across its Modelling & Simulation and Biometrics service-lines, whilst investigating the commercial potential of new areas such as personalised medicine.  The Company believes that its strategy will be effective in helping it to meet challenges such as competitive pressure and the rapid pace of technological change in the pharmaceutical industry.   2.   Seek to understand and meet shareholder expectations The Company maintains a dedicated email address which investors can use to contact the Company which is prominently displayed on its website together with the Company's address and phone number.  The Company holds an Annual General Meeting ("AGM") to which all members are invited and during the AGM, time is set aside specifically to allow questions from attending members to any Board member.  As the Company is too small to have a dedicated investor relations department, the CEO is responsible for reviewing all communications received from members and determining the most appropriate response.  In addition the Company utilises an online investor relations platform to provide business updates as and when needed, but at least two to three times per year. Additional Investor Relations platforms are being explored to enhance the Company's communications with shareholders.   3.   Take into account wider stakeholder and social responsibilities and their implications for long-term success In addition to members, the Company believes its main stakeholder groups are its employees and clients.  The Company dedicates significant time to understanding and acting on the needs and requirements of each of these groups via meetings dedicated to obtaining feedback (see principle 2 above). With regards corporate social responsibility, there is little direct impact of the Company's day-to-day activities however the Company is proud that its overarching goal is to support the development of new treatments for a variety of diseases, including cancer, that have a profound impact on society.   4.   Embed effective risk management, considering both opportunities and threats, throughout the organisation The Company maintains a Business Continuity and Disaster Recovery Plan that is used to manage risks across several categories including personnel, clients, competition, finance, technical and legal.  For each risk we estimate the impact, likelihood as well as identify mitigating strategies.  This plan is reviewed periodically and at least annually.  During such reviews, each risk category is considered by the Directors with a view to understanding (i) whether the nature, impact or likelihood of any risks has changed, (ii) whether the mitigating actions taken by the Company should change as a result and (iii) whether any new risks or categories of risk have arisen since the last review.  The Company's Business Continuity and Disaster Recovery Plan is reviewed by its auditor and Board as part of its annual audit process, providing a degree of external assurance as to the suitability of its risk management strategy, providing a degree of external assurance as to the suitability of its risk management strategy.   5.   Maintain the Board as a well-functioning, balanced team led by the Chairman The Board of Physiomics Plc currently comprises one Executive Director, two independent Non-Executive Directors, one Non-Executive Chairman and a Company Secretary (non-director).  The Board meets at least monthly for one day (except August). Each Director is re-elected to the Board on a rotating basis by a vote of members at the Company's AGM. The Board is considering each Director standing for re-election at each AGM, in line with new QCA guidance, from the next AGM. Executive Directors are employees of the Company. Non-Executive Directors' contracts require that directors dedicate a minimum of one day per month. In addition, non-executive directors may provide additional paid consulting services at rates specified in their contracts. Following a period back in FY24 when Dr Jim Millen has fulfilled the roles of both Executive Chairman and CEO, there is now a more balanced ratio of executive and non-executives on the Company's Board. This also addresses the guidance in the QCA Code regarding separation of the roles of Chairman and Chief Executive Officer. The attendance of the Directors at the regular Board and Committee Meetings during the year ended 31 June 2025 were as follows.   Name Position Regular Board Meetings and AGM Finance & Audit Committee Remuneration Committee Jim Millen Non-executive Chairman 11 (11) 1(1) 1(1) Peter Sargent Chief Executive Officer 11 (11) 2(2) 1(1) Shalabh Kumar Non-executive Director 11 (11) 2(2) Tim Corn Non-executive Director 10 (11) 1(1) 1(1)   Numbers in brackets denote the total number of meetings that each Director was eligible to attend during the year.   6.   Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities The current Directors of the Company, together with their experience, skills, and personal qualities relevant to the Company's business are outlined below: ·      Dr Peter Sargent (Chief Executive Officer) joined Physiomics in September 2023, initially joining the Board as Chief Operating Officer before transitioning to Chief Executive Officer in January 2024. He brings over 20 years of experience in life sciences, leading R&D and commercial teams across drug and diagnostic development businesses. Prior to joining Physiomics, Dr Sargent held a senior management role at global consultancy business Syneos Health Inc (NASDAQ: SYNH), leading large teams of professionals and servicing a variety of clients in the biopharmaceuticals space.  Among his earlier roles, Dr Sargent has also been Head of Business Development for the UK's National Institute for Health and Care Research (NIHR), leading a team supporting global life science businesses access to funding and research infrastructure in the UK. He holds a PhD in Biochemistry from King's College London. ·      Dr Jim Millen (Non-Executive Chairman) joined Physiomics in April 2016, bringing over 15 years' experience in pharmaceuticals and biotechnology gained at a number of blue-chip global companies as well as smaller UK-based organisations. At Allergan, Dr Millen was responsible for corporate development in its Europe, Africa and Middle East region where he was pivotal in expanding the Company's geographical footprint before moving to a senior role responsible for commercial strategy and market access. Prior to that, at GSK, Dr Millen held business development roles of increasing responsibility including within the Company's innovative Centre of Excellence for External Drug Discovery. Dr Millen has also supported a number of smaller companies in fund raising and strategic partnering activities. Over the course of his career he has completed an array of deals worth many hundreds of millions of dollars, spanning licencing, acquisition, divestment, development and commercialisation. Dr Millen studied medicine at Queens' College, Cambridge University and qualified as a doctor from the London Medical School. He holds an MBA from INSEAD.  Dr Millen's ability to develop and grow businesses and drive towards ambitious goals is of great value in his role as Non-Executive Chairman. ·      Dr Tim Corn (Non-Executive Director) qualified in medicine at King's College Hospital and, after becoming honorary Consultant and Senior Lecturer, joined the pharmaceutical industry in 1983. He has held senior positions in both big and small pharma as well as at the MHRA and became CMO of several small but highly successful venture-backed companies, such as EUSA Pharma and Zeneus Pharma.  Dr Corn has played a key role in more than twenty regulatory approvals in the USA and Europe, is the author of more than forty scientific publications, and was elected Fellow of both the Faculty of Pharmaceutical Medicine and the Royal College of Psychiatrists.  ·      Mr Shalabh Kumar (Non-Executive Director) is a proven business executive with over 30 years of experience within the life sciences consulting and services industry. Mr Kumar co-founded, and subsequently was the Chief Executive Officer of Kinapse, a life sciences consulting and outsourcing service provider. The company was later acquired by Syneos Health® (Nasdaq: SYNH) after growing to employ over 600 people across UK, India and US. Prior to that he has worked in Accenture, Gillette (Procter & Gamble) and Unilever. More recently, Mr Kumar has been working as an independent strategy consultant and angel investor in the life sciences industry, working with biopharmaceutical companies, life sciences services and technology companies and private equity firms. Recent roles include Chairman of the Board of Clustermarket Ltd, a lab software start-up; independent strategy consultant to the life sciences R&D group of Accenture plc (NYSE: ACN); and Global Head of Services at Navitas Life Sciences, a technology-backed life sciences contract research organisation. Mr Kumar is also Chairman of Pharmalancers Ltd, a UK-based life sciences services tech start-up.   ·      Anthony Clayden, of Strategic Finance Director Ltd (Company Secretary) is Head of Finance and Company Secretary with over 24 years' experience directing or advising over 50 high growth potential businesses of differing size and complexity and brings broad experience of strategic, operational, and financial matters. His career encompasses numerous businesses in the life sciences and healthcare sector including 6 years as Chief Financial Officer of AIM quoted Futura Medical Plc where he was involved in its IPO and a series of placings. Previously, Anthony worked with KPMG and PwC on a range of corporate finance matters including fundraisings, company sales and acquisition advice. Anthony has a B.Sc. (Hons) in Natural Sciences from Durham University and is a Qualified Chartered Accountant.  Although Anthony is not a Director of the Company, he provides invaluable advice on all matters financial. The Company holds annual briefings for the Board covering regulations that are relevant to their role as Directors of an AIM-quoted company. The Company believes that its Directors blend of past and ongoing experience provides them with the relevant up to date skills needed to act as board members for a small company. The Company keeps close contact with its NOMAD and nominated Broker on ongoing regulatory and market related changes and issues, and seeks their advice and periodic teach ins.   7.   Evaluate Board performance based on clear and relevant objectives, seeking continuous improvement Evaluation of the performance of the Board has historically been implemented internally.  The Board will review and consider the performance of each Director at or around the time of the Company's Annual General Meeting. On an ongoing basis, Board members maintain a watching brief to identify relevant internal and external candidates who may be suitable additions for current Board members.   8.   Promote a corporate culture that is based on ethical values and behaviours The Board believes that the promotion of a corporate culture based on sound ethical values and behaviours is essential to maximise shareholder value.  The Company maintains and annually reviews a handbook that includes clear guidance on what is expected of every employee and officer of the Company.  Adherence of these standards is a key factor in the evaluation of performance within the Company, including during annual performance reviews.  In addition, staff matters are a standing topic at every Board meeting and the CEO reports on any notable examples of behaviours that either align with or are at odds with the Company's stated  values.  The Directors believe that the Company culture encourages collaborative, ethical behaviour which benefits employees, clients and shareholders and that all employees and consultants work in line with the Company's values.   9.   Maintain governance structures and processes that are fit for purpose and support good decision-making by the Board The Board of the Company, together with its sub-committees, is responsible for the following: ·      The setting of and execution of the overall strategy of the Company; ·      The setting of financial targets and monitoring of the Company's performance vs these targets on a monthly basis; ·      The preparation and approval of interim and final results for the Company; ·      The commissioning and oversight of the audit of the Company's full year results; ·      The preparation and approval of the Company's Annual Report; ·      The preparation of resolutions to be voted upon in the Company's Annual General Meeting; ·      Approval of regulatory communications; ·      The setting of guidelines for remuneration of employees, Directors, and consultants, including where appropriate long-term incentives such as share option schemes; ·      The approval and oversight of any changes to the capital structure of the Company such as the raising of capital through placings; ·      The identification, evaluation, and monitoring of key strategic risks to the Company's business; and ·      The employment of key officers and Directors of the Company (the latter as recommendations to be voted on at the Company's AGM). The key Board roles are as follows: ·      Chairman: The primary responsibility of the chair is to lead the Board effectively and to oversee the adoption, delivery, and communication of the Company's corporate governance model. The chair is also responsible for making sure that the Board agenda concentrates on the key issues, both operational and financial, with regular reviews of the Company's strategy and its overall implementation. ·      CEO: Charged with the delivery of the business model within the strategy set by the Board.  Works with the other directors in an open and transparent way.  Keeps the Board up-to-date with operational performance, risks, and other issues to ensure that the business remains aligned with the strategy. The Board has two sub-committees appointed by the Board of Directors.  They are as follows: ·      Audit Committee: The Committee meets to consider matters relating to the Company's financial position and financial reporting.  The Committee reviews the independence and objectivity of the external auditors, Moore Kingston Smith LLP, as well as the amount of non-audit work undertaken by them, to satisfy itself that this will not compromise their independence. Details of the fees paid to Moore Kingston Smith LLP during the current accounting period are given in the notes to the accounts.  The Audit Committee currently comprises Dr Peter Sargent and Mr Shalabh Kumar, with Anthony Clayden of Strategic Finance Director Ltd (Company Secretary) attending as secretary. ·      Remuneration Committee: The Remuneration Committee has been established primarily to determine the remuneration, terms and conditions of employment of the Executive Directors of the Company. Any remuneration issues concerning Non-Executive Directors are resolved by this Committee and no Director participates in decisions that concern his own remuneration.  The Remuneration Committee comprises Dr Tim Corn and Dr Jim Millen, with Anthony Clayden of Strategic Finance Director Ltd (Company Secretary) attending as secretary. Finally, the Company gives regular consideration to how best to evolve its governance framework as it grows. It currently does not have an ESG committee.       10. Communicate how the Company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders On the Company's website, shareholders can find all historical RNS announcements, interim reports, and annual reports.  Annual Reports and Annual General Meeting Circulars are made available to all registered shareholders or nominees via electronic shareholder communication system managed by the Company's registrar and results of Annual General Meeting votes are also published on the Company's website.  The Company's website allows shareholders and other interested parties to sign up to a mailing list to enable them to directly receive regulatory and other Company releases.  As described earlier, the Company also maintains email and phone contacts which shareholders can use to make enquiries or requests. Environmental and Social Governance The Company has a relatively small environmental footprint and implements various policies to ensure it is kept to a minimum, including: ·      Use of modular office space with services shared with other occupiers ·      Adoption of flexible "hot-desking", especially in light of new more flexible home/ office working models post-COVID ·      Recycling of office waste where possible The activities of the Company are targeted at supporting companies developing drugs and therapies to fight a variety of diseases, including cancer, in addition, the computer-based modelling we undertake serves to reduce the volume of animal testing needed in developing such therapies. Finally, in terms of diversity and inclusion, of nine permanent employees, five are women and three are non-UK nationals. Post balance sheet events There were no post reporting events to note. Statement as to disclosure of information to auditors The Directors in office on 26 September 2025 have confirmed that, as far as they are aware, there is no relevant audit information of which the auditors are unaware. Each of the Directors have confirmed that they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors. Going concern, responsibilities and disclosure After making appropriate enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the financial statements. Internal controls and risk management The Board is responsible for the Company's system of internal control and risk management and for reviewing its effectiveness.  The Directors have a reasonable expectation that the Company will safeguard the Company's assets.  The risk management process and internal control systems are designed to manage rather than eliminate the risk of failing to achieve business objectives and can only provide reasonable, but not absolute, assurance against material misstatement or loss.  The key features of the Company's system of internal control are as follows: ·      a clearly defined organisational structure and set of objectives; ·      the executive Directors play a significant role in the day to day operation of the business; and ·      detailed monthly management accounts are produced for the Board to review and take appropriate action. Energy and Carbon Reporting Although the Company is not required to report under the UK Government's Streamlined Energy and Carbon Reporting (SECR) framework, the Board recognises the importance of environmental responsibility and transparency. Physiomics operates a single office in Oxford with a small team, and its overall energy use and carbon footprint are modest. The principal sources of emissions arise from electricity usage in the office and occasional business travel. During the year the Company has: ·      maintained a hybrid working model, reducing commuting requirements. ·      encouraged the use of public transport and virtual meetings to minimise travel-related emissions. ·      continued to monitor office electricity use to ensure efficient operation. Given the scale of operations, the Board believes that Physiomics' environmental impact is low; however, it remains committed to adopting proportionate measures to further reduce its footprint where practicable. Annual General Meeting The Company values the views of its shareholders and recognises their interest in the Company's strategy, performance, and the ability of the Board. The AGM provides an opportunity for two-way communication and all shareholders are encouraged to attend and participate. Separate resolutions will be put to shareholders at the AGM, giving them the opportunity to discuss matters of interest. The Company counts all proxy votes and will indicate the level of proxies lodged on each resolution, after each has been dealt with on a show of hands. The Company intends to hold an in-person AGM this year, further details of which will be announced shortly.     Independent Auditors' Report to the Members of Physiomics Plc Opinion We have audited the financial statements of Physiomics PLC (the Company) for the year ended 30 June 2025 which comprise the Income statement, Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Cash Flows Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards. In our opinion the financial statements: ·      give a true and fair view of the slate of the company's affairs as at 30 June 2025 and of its loss for the year then ended ·      have been properly prepared in accordance with UK adopted international accounting standards; and ·      have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. Including the FRC's Ethical Standard as applied to listed entitles, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.     An overview of the scope of our audit We tailored the scope of our audit to ensure that we performed sufficient and appropriate audit work to be able to express an opinion on the financial statements. The scope of our audit of the Company's financial statements involved obtaining an understanding of the Company and its environment, including the system of internal control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management override of internal controls, including assessing whether there was evidence of bias by the directors that may have represented a risk of material misstatement.   Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.     Risk How the Scope of our audit responded to the risk Revenue recognition The company's accounting policy in respect of revenue recognition is set out on page 41. We critically assessed the risk of material misstatement in the financial statements due to incorrect revenue. The revenue is all contractual in nature (either projects or grant income) and revenue totalled £834,156 (2024: £570,561). Revenue for projects is recognised against an estimated time to complete and then against time spent on the project. Revenue for grant income is recognised against qualifying costs incurred on the grant related activity in accordance with the terms of the grant. The key risk of material misstatement is whether the revenue has been recognised appropriately in accordance with the requirements of IFRS 15 and in the correct accounting period.   We focused our work on those revenue streams that are most susceptible to the risk of material misstatement in the financial statements. Our work was focused on ensuring that revenue was recognised in accordance with the requirements of IFRS 15.   Our work included, but was not limited to, the following procedures:   • We reviewed contracts with customers to understand the duration and scope of the project. • We substantively tested a sample of time reported spent on project to relevant supporting timesheets • We tested a sample of contracts to supporting documentation and amounts charged to debtors were agreed to bank receipts. • We tested a sample of underlying costs incurred for the grant income to corroborating information. Based on the procedures performed, we were satisfied that revenue has been recorded appropriately in accordance with the requirements of IFRS15 and the company's stated accounting policy.   Our application of materiality The scope and focus of our audit were influenced by our assessment and application of materiality. We define materiality as the magnitude of misstatement that could reasonably be expected to influence the economic decisions of the users of the financial statements. We use materiality to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements both individually and on the financial statements as a whole. Due to the nature of the company and its activities, we concluded that the loss before tax was likely to be the main focus for the users of the financial statements; accordingly, our calculation of materiality used the loss before tax as the relevant benchmark. Based on our professional judgement, we determined overall materiality to be £24,000 based on 6% of the loss before tax (2024: £17,117 based on 3% of revenue). On the basis of our risk assessments, together with our assessment of the overall control environment, we use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. Our performance materiality was 50% (2024: 70%) of overall materiality, amounting to £12,000 (2024: £11,982). We agreed to report to the Audit Committee all audit differences in excess of £1,200 (2024: £855), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also reported to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.   Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included; •       We critically assessed Directors' budgets and forecast for the years ending 30 Juns 2026 and 30 June 2027, respectively. This included considering whether the cash flow assumptions were consistent with our understanding of the business and its outlook; •       We evaluated the reasonableness of the assumptions used in these calculations including mitigating actions available to management to manage and control forecast cash burn levels. We critically assessed the status of the sales pipeline to obtain evidence of support for the forecast revenues; •       We critically assessed the availability and feasibility of cost reduction opportunities included within the Directors forecasts to preserve cash resources within the business. This included determining if these opportunities were within management control. •       We performed sensitivity analysis on the budget and cash flow forecast to determine how changes in the assumptions used could impact the overall cash position and the cash burn rate and therefore the company's ability to continue as a going concern. We observed, based on the work performed as set out above, that the assumptions used by the company in preparing their cash flow forecasts and budgets were reasonable and that the approach taken in determining forecast revenues as set out above was appropriate. We also concluded after performing the sensitivity analysis referred to above that the changes to the assumptions used did not appear to significantly impact the company's ability to continue in business for at least twelve months from the date of approval of the financial statements. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: •       the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and •       the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: •       adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or •       the financial statements are not in agreement with the accounting records and returns; or •       certain disclosures of directors' remuneration specified by law are not made; or •       we have not received all the information and explanations we require for our audit. Responsibilities of directors As explained more fully in the directors' responsibilities statement set out on page 20 the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is available on the FRC's website. https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics/auditors-responsibilities-for-the-audit/ This description forms part of our auditor's report. Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. Our approach was as follows: •       We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK adopted international accounting standards, the rules of the Alternative Investment Market, and UK taxation legislation. •       We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance. •       We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and error and how it might occur, by holding discussions with management and those charged with governance. •       We designed and performed audit procedures over areas which in our professional judgment are susceptible to the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and error. •       We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. •       Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.   Use of our report This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the company's members those matters which we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and company's members as a body, for our work, for this report, or for the opinions we have formed.               Income Statement for the year ended 30 June 2025 Year ended   Year ended  30 June   30 June 2025   2024 Notes £   £ Revenue 3 784,005 543,250 Other operating income 3 50,151 27,311 Total income   834,156 570,561   Net operating expenses   (1,291,947) (1,241,377) Operating loss 4 (457,791) (670,816) Finance income 7 522     2,095 Finance costs 8 - (33) Loss before taxation   (457,269) (668,754) Income tax income 9 42,015 59,402 Loss for the year attributable to equity shareholders 25 (415,254)   (609,352)   Earnings per share (shown in pence)      10 Basic and diluted (0.17)p (0.45)p         Statement of Comprehensive Income for the year ended 30 June 2025   Year ended 30 June 2025   Year ended 30 June 2024 £   £ Loss for the year (415,254) (609,352) Other comprehensive income - - Total comprehensive income/ (expense) for the year (415,254) (609,352) Attributable to: Equity holders (415,254) (609,352)       Statement of Financial Position as at 30 June 2025  Non-current assets 2025   2024 Notes £   £ Intangible assets 12 3,280 4,379 Property, plant and equipment 13 12,800 16,829 16,080 21,208 Current assets Trade and other receivables 14 414,704 210,323 Cash and cash equivalents 461,242 191,072 875,946 401,395 Total assets 892,026 422,603   Current liabilities Trade and other payables     18     160,661       106,002 Deferred revenue 19 39,194 34,074   Total liabilities 199,855 140,076 Net current assets 676,091 261,319 Net assets 692,171 282,527   Equity Called up share capital 22 2,106,232 1,435,287 Share premium account 23 6,270,896 6,122,115 Other reserves 24 128,385 151,387 Retained earnings 25 (7,813,342) (7,426,262) Total equity 692,171 282,527                                   Statement of Changes in Equity for the year ended 30 June 2025         Share capital Share premium account Other Reserves   Profit and loss reserves      Total     Balance at 1 July 2023   Year ended 30 June 2024:   Notes £   1,283,096 £   5,936,478 £   147,651   £   (6,835,505)               £   531,720 Loss and total comprehensive income for the year - - - (609,352) (609,352) Issue of share capital 152,191 185,637 - - 337,828 Transfer to other reserves 23 - - 22,331 - 22,331 Other movements   - - (18,595) 18,595 - Balance at 30 June 2024 1,435,287 6,122,115 151,387 (7,426,262) 282,527 Year ended 30 June 2025: Loss and total comprehensive income for the year       -     -     -       (415,254)       (415,254) Issue of share capital   23 670,945 148,781 - - 819,726 Transfer to other reserves   - - 5,172 - 5,172   Other movements       - - (28,174) 28,174 - Balance at 30 June 2025 2,106,232 6,270,896 128,385 (7,813,342) 692,171                                       Cash Flow Statement for the year ended 30 June 2025     2025          2024 Notes £ £ £ £ Cash flows from operating activities Cash absorbed by operations 32 (605,546) (642,852) Interest paid       - (33) Tax refunded 59,403 94,752 Net cash outflow from operating activities   (546,143)   (548,133) Investing activities Purchase of tangible fixed assets (3,935) (17,310) Interest received 522 2,095 Net cash used in investing activities (3,413)           (15,215) Financing activities Proceeds from issue of shares 906,417 380,477 Share issue costs (86,691) (42,649) Net cash generated from financing activities   819,726             337,828 Net decrease in cash and cash equivalents   270,170          (225,520) Cash and cash equivalents at beginning of year   191,072   416,592 Cash and cash equivalents at end of year   461,242   191,072       Notes to the Financial Statements 1       Accounting policies   Company information Physiomics PLC is a Company limited by shares incorporated in England and Wales.  The registered office and principal place of business is Bee House, 140 Easten Avenue, Milton Park, Abingdon, OX14 4SB.  The Company's ordinary shares of 0.4p each are admitted to trading on the AIM market of the London Stock Exchange plc.   1.1    Accounting convention The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.   The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.   1.2    Application of new and revised International Financial Reporting Standards ("IFRSs") Standards, amendments and interpretations to existing standards that are not yet effective have not been early adopted by the company.   At the date of authorisation of these financial statements, the Directors have reviewed the standards in issue by the International Accounting Standards Board ("IASB") and IFRIC, which are effective for annual accounting periods ending on or after the stated effective date. In their view, none of these standards would have a material impact on the financial statements.   1.3    Going concern The accounts have been prepared on a going concern basis.   The Company operates in the relatively defensive pharmaceutical industry.   As at 30 June 2025 the Company held cash and cash equivalents of £461,242 (2024: £191,072), which are managed under a Board investment policy that prioritises low-risk cash or cash-equivalent investments to safeguard the principal, and trade debtors of £245,721 (2024: £102,510). Together with anticipated invoicing from contracted revenue of £594,000, these resources are projected to cover the majority of budgeted expenses for the year ending 30 June 2026.   In assessing going concern, the Directors considered not only this contracted revenue, cash balance and trade debtor receipts, but also the wider sales pipeline, staffing requirements, cost base, and the actions available to manage expenditure if necessary. They reviewed financial projections and sensitivity analyses across a range of scenarios extending to twelve months from the date of approval of these financial statements. These analyses demonstrated that the Company is expected to remain cash positive, and where lower income levels were assumed, the Board identified mitigating measures such as cost reductions or deferral of discretionary spend that would preserve liquidity.   Having undertaken this review, the Directors believe that the Company is adequately placed to manage its business and financing risks for the next twelve months from the date of approval of these financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing the annual report and accounts.   1.4    Revenue recognition The revenue shown in the income statement relates to amounts received or receivable from the provision of services associated with quantitative pharmacology and biometrics services to pharmaceutical companies.   Revenue from the provision of the principal activities is recognised by reference to the stage of completion of the transaction at the balance sheet date where the amount of revenue can be measured reliably and sufficient work has been completed with certainty to ensure that the economic benefit will flow to the Company.   1.5    Intangible assets other than goodwill Intangible assets acquired separately from third parties are recognised as assets and measured at cost.   Following initial recognition, intangible assets are measured at cost or fair value at the date of acquisition less any amortisation and any impairment losses.  Amortisation costs are included within the net operating expenses disclosed in the income statement. Intangible assets are amortised over their useful lives as follows: Useful life Method Trademarks 10 years Straight line Licenses  5 years Straight line   Useful lives are also examined on an annual basis and adjustments, where applicable are made on a prospective basis. The Company does not have any intangible assets with indefinite lives.   1.6    Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.   Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:   Fixtures and fittings                                           &...

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