Final Results

Press Release

21 March 2013

Cyprotex PLC

("Cyprotex" or the "Company" or the "Group")

Final results for the year ended 31 December 2012

Continued Revenue Growth and Investment in Core Technology

Cyprotex PLC (AIM: CRX), the preclinical ADME-Tox services company, today reports its final results for the year ended 31 December 2012.

Financial Highlights

·; Revenues up 5.3% to £8.33 million (2011: £7.91 million)

·; Continued profitability with operating profits to £0.33 million (2011: £0.67 million)

·; Underlying EBITDA^, an indicator of cash generation, remains consistently strong at £0.97 million (2011: £1.31 million)

·; Profit after taxation at £0.20 million (2011: £0.88 million)

·; Earnings per share at 0.09 pence (2011: 0.39 pence)

^ excluding share-based payment charge

Operational Highlights

·; 156 new customers with a 19% increase in revenue generated from existing and new strategic clients.

·; Dr Clive Dilworth appointed as Chief Scientific Officer to lead the scientific direction of the Company.

·; Launch of CellCiphr® Premier, a new proprietary service which combines in vitro and in silico technologies in the prediction of toxicology.

·; Collaborative 18 month research agreement signed with Pfizer to evaluate and further develop several of Cyprotex's proprietary offerings in the area of predictive toxicology.

·; Strategic alliance formed with Sirius Analytical Instruments Ltd, leaders in physicochemical profiling, to offer Sirius services to Cyprotex clients.

·; First commercial licensing agreement with Sigma® Life Science to provide cell-based services using their transporter knockout cell lines.

·; Joint service offering announced with InSphero AG using their proprietary 3D microtissue model.

·; Continued reduction in reliance on top 5 customers accounting for 30% of revenue in 2012 compared to 35% two years ago.

·; £1 million upgrade of the analytical platform including the purchase of four Waters XEVO triple quadrupole mass spectrometers and additional robotic Tecan handling equipment at the Macclesfield site.

Steve Harris, Chairman of Cyprotex PLC, said:

"Our policy of investment across the business allows us to sustain growth and drive the Company forward. As we embrace cutting-edge analytical equipment and robotics to support our rapidly expanding menu of mainstream ADME assays, develop innovative tests in both ADME and Tox areas, and enhance our employee development, we strive to provide our customers with a highly tailored personalised service."

"We are confident that this investment, together with the continuing diversification of our customer base to include companies both in and outside of the pharmaceutical industry, has prepared Cyprotex for a period of substantial growth and profitability, ultimately creating value to our shareholders."

For further information:

Notes to Editors:

Cyprotex PLC

Cyprotex is the world's largest contract research organisation (CRO) specialising in ADME-Tox, which is the analysis of the Absorption, Distribution, Metabolism, Excretion, and Toxicity properties of potential drugs, cosmetics, and agrochemicals. It is the only company in the world with in-house capabilities for both in vitro (test tube) and in silico (computer modelling) ADME-Tox. Cyprotex was founded in 1999 and listed on the AIM in 2002. It has laboratories in Macclesfield, Cheshire, UK (near Manchester), and Watertown, Massachusetts, USA (near Boston), making it one of only three ADME Tox CROs with international operations.

Chairman and Chief Executive Officer's Report

Substantial growth reported from areas of core competence

Cyprotex saw continued strong revenue growth for the business in 2012. Despite a reduction in revenues from toxicology offerings, the base business in high throughput ADME assays saw substantial growth, especially from the Macclesfield site (22% increase over 2011). Revenues derived from our new internal R&D driven services also substantially increased, validating our strategy of growing the business from both existing assays and the development of new assays in response to customer need.

Geographically, US revenues are 40% (2011: 44%) and we anticipate further growth in 2013. Whilst revenues from Europe remain strong, we also note a burgeoning increase in business from the Rest of the World.

We believe the R&D investment made in both ADME and Tox assays and operational changes made over the past four years are beginning to bear fruit. The business is poised for growth in 2013 and beyond, from what is a now a stable and technically advanced business.

We have noted that our competition in the ADME-Tox field have reported mixed success in their businesses with several smaller companies becoming insolvent or being acquired by larger players and the very large CRO's reporting losses, particularly in pre-clinical toxicology. Against this competitive back drop, we believe that Cyprotex's 2012 performance is highly creditable.

Operational Performance

We have continued to diversify our customer base, further reducing our reliance on any one or two single customers. In 2012, our largest customer afforded 11.3% of our revenues (2011: 13.0%). We have also seen further diversification of our customer base, particularly in toxicology, with new business coming from the tobacco and aerospace industries as well as expansion into cosmetics and agrochemicals.

Cyprotex has grown to 75 staff, and as part of the development of the management function and succession planning for the business, - we have overseen a considerable restructuring of the team. The following promotions have been announced. Dr Clive Dilworth to Chief Scientific Officer, Dr Laura Hinton to Director of Scientific Operations UK, Mr Jon Gilbert to Executive Director US Operations, Dr Bodo Spori to Executive Director of Sales. Operational changes have been made to incorporate the recruitment of four more scientists in the UK laboratories. Dr Katya Tsaioun stepped down from her role as CSO, as planned and we are grateful for the considerable efforts she has made to integrate the Apredica business into the wider Cyprotex company.

The retrenchment of the larger pharmaceutical companies onto fewer sites researching fewer therapeutic disease areas that we have seen in recent years has continued into 2012. The consequences of such reorganisations have meant that there have been fewer opportunities for strategic outsourcing, particularly in drug discovery programs and in ADME Tox screening. As this begins to settle, we are starting to see more opportunities for strategic contracts and in recent months, we have been more successful than ever before in bidding for and securing larger ADME screening contracts.

Our toxicology services offering which performed so well in 2011 suffered a setback in 2012 as a large US Government contract was delayed. The inability to recognise this revenue in a large part explained our half year financial performance which recorded an operating loss of £189,000 on a turnover of £3,719,000. As in previous years, the second half of the year was stronger than the first half and we recorded several sizable contract wins. Revenues in October topped £1 million for the first time in the Group's history and demonstrated the potential of the business.

Cyprotex has invested in capital expenditure heavily in 2012, most notably in the complete upgrade of our mass spectrometer analytical platform. With the acquisition of four new Waters Xevo triple quadrupole mass spectrometer instruments, we believe Cyprotex's analytical capabilities are second to none in companies of our type and space. We have also acquired a new robotic screening platform at a cost of £110,000 to augment our existing BasePlate high throughput screening platform.

Cyprotex's investment in R&D continues to provide new, state of the art, ADME-Tox assays for our customers. Their direction and advice in which assays would be of interest has proved invaluable in launching such successful new assays, including:

·; CellCiphr® Premier - an updated, improved and more accurate version of our high content toxicology prediction service.

·; Transporter knockout cell-based assays - utilise Sigma® Life Sciences transporter knockout cell lines for identifying transporter based drug interactions.

·; 3D microtissue assays - offer a more physiologically relevant in vitro model which utilises InSphero AG's proprietary hanging drop technology.

·; PXR and AhR nuclear receptor activation - provides an early stage screening approach for enzyme induction.

·; Lysosomal trapping - identifies drugs which accumulate in cells resulting in potential toxicity.

Of particular note, is the paid research collaboration with Pfizer to develop CellCiphr® by incorporating elements of our proprietary Cloe® PK prediction algorithms to vastly improve prediction rates for potentially toxic therapeutics.

We have also continued our strategy of developing a 'Federated' approach to widening our service offerings by partnering with organisations who are at the forefront of their respective fields. In addition to our existing partnering agreement with Sygnature Discovery, we have signed partnership arrangements in 2012 with Sirius Analytical to offer high throughput physical chemistry data and with InSphero AG to co-market and provide services related to their proprietary 3D InsightTM liver microtissue technologies.

Financial Performance

Despite not being able to recognise a substantial amount of revenue from a delayed US contract, we have been able to grow our group revenues by over 5% to £8.33 million - a record turnover for the business. We are also pleased to record a fifth consecutive year of profitability (recovering from a loss at the half year); positive cash flows from operations and with operating profits of £0.33 million (2011 £0.67 million).

The balance sheet remains strong with net assets of £7.0 million (2011: £6.8 million), with £0.9 million held as cash (2011: £1.1 million).

The Group has invested over £0.44 million in R & D (2011: £0.58 million). Specifically, a further £93,000 (2011: £172,000) was invested in the continuing development of CellCiphr technologies which were acquired at the time of the Apredica acquisition in August 2010. Consequently, in September 2012, Cyprotex was able to launch the CellCiphr® Premier assay which incorporates our predictive technologies within our proprietary High Content Toxicology Screening portfolio.

As noted last year, the Group continued to invest in capital equipment spending £1.1 million (2011: £0.31 million) with the majority on four Waters Xevo TQ mass spectrometers and a new Tecan based robotic screening platform, utilising three to five year leasing facilities to assist funding this capital program at funding rates of 70% or 90%. Cyprotex's analytical platform is now state of the art and comparable to the best the industry has to offer. We will continue to invest in specific new analytical equipment in 2013 to widen our service offering capabilities, with a further two Xevo TQ mass spectrometers at a cost of £388,200 on order at year end, with delivery and commissioning due in Q1 2013.

When non-cash items and acquisition costs are deducted, the underlying EBITDA recorded for the year was pleasing at £0.97 million (£1.31 million in the previous year and £0.77 million in 2010). This is a key indicator of the groups continuing ability to generate cash from its core operation.

Following an expansion of our scientific lab based team in Macclesfield required to cope with the increase in business on the UK site, our total head count at the date of this report is now 75.

Outlook and Summary

Our policy of investment across the business allows us to sustain growth and drive the Company forward. As we embrace cutting-edge analytical equipment and robotics to support our rapidly expanding menu of mainstream ADME assays, develop innovative tests in both ADME and Tox areas, and enhance our employee development, we strive to provide our customers with a highly tailored personalised service.

We are confident that this investment, together with the continuing diversification of our customer base to include companies both in and outside of the pharmaceutical industry, has prepared Cyprotex for a period of substantial growth and profitability, ultimately creating value to our shareholders.

21 March 2013

Consolidated income statement

year to 31 December 2012

Consolidated statement of comprehensive income

year to 31 December 2012

Consolidated statement of financial position

at 31 December 2012

Consolidated statement of changes in equity

year to 31 December 2012

Consolidated statement of cash flows

year to 31 December 2012

Notes to the final results

year to 31 December 2012

1. Nature of operations and general information

Cyprotex PLC ('Cyprotex') and subsidiaries' (together 'the Group') principal activity is the provision of in vitro and in silico ADMET/PK (Absorption, Distribution, Metabolism, Excretion, Toxicity/Pharmacokinetic) information to the pharmaceutical industry.

Cyprotex's vision is to provide, in partnership with our customers in drug discovery and development, the highest quality, fastest turnaround and most cost effective ADME and pharmacokinetic data to those customers.

Cyprotex PLC is the Group's ultimate parent company. It is incorporated and domiciled in England and Wales. The address of Cyprotex PLC's registered office is 100 Barbirolli Square, Manchester M2 3AB. The address of its principal places of business are 15 Beech Lane, Macclesfield, Cheshire, United Kingdom, SK10 2DR and 313 Pleasant Street, Watertown, Massachusetts MA 02472 USA. It trades through its wholly owned subsidiaries: Cyprotex Discovery Limited based in Macclesfield in the UK and Apredica, LLC in Watertown in the USA. Cyprotex PLC's shares are listed on the Alternative Investment Market of the London Stock Exchange.

The consolidated financial information set out in this announcement are presented in Pounds Sterling (£), which is also the functional currency of the parent. The consolidated financial information has been approved for issue by the Board of Directors on 20 March 2013.

The information in this preliminary announcement does not constitute statutory accounts within the meaning of sections 434 to 436 of the Companies Act 2006 and no statutory accounts have yet been filed with the Registrar of Companies for the year ended 31 December 2012. Statutory accounts for the year ended 31 December 2011 have been filed with the Registrar of Companies. The auditors report on these accounts was unqualified and did not contain an emphasis of matter, nor did it contain a statement under section 498 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2012 will be delivered to the registrar of Companies following the Company's Annual General Meeting.

The Group's statutory financial statements for the year ended 31 December 2011 and 31 December 2010, prepared under International Financial Reporting Standards (IFRS) have been filed with the Registrar of Companies.

Whilst the financial information included in this final results announcement has been computed in accordance with IFRS, this announcement in itself does not contain sufficient information to comply with IFRS.

2. Basis of preparation

The consolidated final results are for the year ended 31 December 2012. They have been prepared in accordance with the requirements of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), including International Accounting Standards (IAS) and interpretations issued by the International Financial Reporting Committee (IFRIC) and applied in accordance with the Companies Act 2006. Practice is continuing to evolve on the application and interpretation of IFRS. Further standards may be issued by the International Accounting Standards Board (IASB) and standards currently in issue and endorsed by the EU may be subject to interpretations issued by IFRIC.

The consolidated final results have been prepared in accordance with the accounting policies set out in the Group's statutory financial statements for the year ended 31 December 2012.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this consolidated financial information.

3. Going concern

The Group recorded a profit after taxation of £202,502 in the year ended 31 December 2012. Cash and deposits are £858,539. The Directors have reviewed the budget, financial forecasts including cash flow forecasts and other relevant information. They believe that the Group has adequate resources to continue in operation for the foreseeable future. The general economic environment in its main European and US markets could adversely affect demand for the Group's products and there is the possibility that the Group's actual trading performance during the coming year may be different from management's expectation.

4. Segmental information

Revenue represents the amounts derived from the provision of goods and services which fall within the Group's ordinary activities and is stated net of value added tax and trade discounts.

The Group has a single operating and reportable segment, that of providing in vitro and in silico ADMET/PK (Absorption, Distribution, Metabolism, Excretion, Toxicity/Pharmacokinetic) information to the pharmaceutical and biotechnology industries. The revenue and operating profit for the year are derived from the Group's single operating and reportable segment. The Group has made an acquisition during the second half of the year ended 31 December 2010 which falls into this reporting segment.

The Group gives a geographic analysis of revenue by destination. Key markets for the Group are identified as North America, Mainland Europe and the United Kingdom.

5. Earnings per share

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post tax effect of dividends and/or interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares.

Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.

6. Share issues

The authorised share capital of the Company was increased by 100,000,000 ordinary shares of 0.1p each to 300,000,000 on 14 July 2009. The Company has only one class of shares. During the year to 31 December 2012, no ordinary shares were issued. Shares issued may be summarised as follows:

7. Taxation

At 31 December 2012, the Group has tax losses and deductibles totalling approximately £6.8 million that are available for offset against future profits arising from the same trade.

8. Additions and disposals of property, plant and equipment

The following tables show the significant additions and disposals of property, plant and equipment.

9. Finance lease and hire purchase arrangements

The Group entered into four separate finance lease or hire purchase agreements, over three to five year terms, in the year ended 31 December 2012 (2011: one; 2010: none) to assist with the upgrade of the UK analytical platform and robotic handling equipment. The cost of this equipment and amount of funding received are as follows:

These additions to property, plant and equipment can be reconciled to the amounts disclosed in the statement of cash flows and the statement of financial position as follows:

10. Intangible assets

The following tables show the significant movements in intangible fixed assets.

Goodwill is subject to a yearly impairment test. Goodwill and other intangible assets relate to the acquisition of Apredica, LLC in August 2010 and Apredica, LLC is defined as the cash - generating unit for impairment testing purposes.

The Group performed its annual impairment test as at 31 December 2012. As a listed entity on the AIM market of the London Stock Exchange, at the highest level, the Group considers the relationship between its market capitalisation and book value.

Where Goodwill has been separately indentified to a particular set of assets and liabilities, as in the case with Apredica, LLC, a value - in - use calculation has been determined using detailed cash flow projections based upon those forecast to be generated by the Apredica, LLC unit over the next five years. Beyond five years, a terminal growth rate is used with reference to previous growth achieved in the ADME-tox market by the Group taking into consideration the forecast growth in the market or markets in which Apredica, LLC currently operates. Following the impairment review, as at 31 December 2012, the Board is satisfied that there was no impairment to the carrying value of goodwill.

Additions in the year to Technology & know-how relate to development work carried out on CellCiphr® technologies.

11. The Annual Report

The 2012 Annual Report and Accounts of the Group will be available to shareholders on the 3 June 2013 Copies will be available on request from the Company Secretary, Cyprotex PLC, 15 Beech Lane, Macclesfield, Cheshire, SK10 2DR.

12. Annual General Meeting

The Annual General Meeting of the Company is scheduled to be held at 10:00am on Tuesday, 16 July 2013 at The Royal Society of Medicine, 1 Wimpole Street, London, W10 0AE.