Adams : Interim Report for the six months to 30 September 2022

ADAMS PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2022

ADAMS PLC

CONTENTS

ADAMS PLC

COMPANY INFORMATION

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ADAMS PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTH PERIOD TO 30 SEPTEMBER 2022

Adams Plc ("Adams" or the "Company") reported a loss after tax of £1.03 million for the half year to 30 September 2022, compared to a loss of £0.65 million in the comparative half year ended 30 September 2021. The increased loss reflects continuing difficult financial market conditions and is principally due to investment return losses of £0.95 million coupled with overhead costs of £0.08 million (September 2021 half year: investment return losses of £0.57 million coupled with overhead costs of £0.08 million).

During the six months ended 30 September 2022, the Company spent £0.63 million on two equity investments, one of which was a new investment and the other being a follow-on investment. There were no investment realisations during the period, but the reported half year loss includes a £0.10 million full write down of our small investment in 4D Pharma Plc which went into administration on 24 June 2022.

Adams held eleven investments as at 30 September 2022, of which nine were listed and two were un-listed, and for which the total investment carrying value was £6.30 million (31 March 2022: £6.62 million, represented by nine listed and two un-listed investment holdings).

The Company held cash balances of £0.16 million as at 30 September 2022, compared to cash balances of £0.87 million at the previous 31 March 2022 year end. Net assets reduced to £6.45 million (equivalent to 4.42p per share) at the 30 September 2022 balance sheet date, compared with £7.48 million (equivalent to 5.13p per share) at 31 March 2022. The £1.03 million decrease in net assets reflects the loss reported for the period.

Business model and investing policy

Adams is an investing company with an investing policy under which the Board is seeking to acquire interests in special situation investment opportunities that have an element of distress, dislocation, dysfunction or other special situation attributes and that the Board perceives to be undervalued. The principal focus is in the small to middle-market capitalisation sectors in the UK or Europe, but the Directors will also consider possible special situation opportunities anywhere in the world if they believe there is an opportunity to generate added value for shareholders.

Investment Portfolio

The principal listed investments held by the Company at 30 September 2022 comprised Niox Group Plc ("Niox" formerly known as Circassia Group Plc), C4X Discovery Holdings Plc ("C4XD"), Seeing Machines Limited ("Seeing Machines") and Access Intelligence Plc ("Access Intelligence") and Adams also holds Oxehealth Limited ("Oxehealth") and Telit IOT Solutions Limited ("Telit") as principal unquoted investments.

Niox is an AIM listed global medical device company focused on point of care asthma diagnosis and management. Following a major restructuring and the transfer of the Tudorza and Duaklir products back to AstraZeneca in March 2021, Niox has now been transformed into a debt-free business with a strong NIOX® asthma management products based continuing operations business. The group is progressing its transition to a distributor-led business model with new arrangements in the USA and China expected to drive scalable growth as it continues to implement access to a large and underserved population of patients suffering from asthma. For the six months ended 30 June 2022, sales increased 11% to £15.5 million and generated an EBITDA profit of £3.2 million. The profit after tax for the period amounted to £9.2 million inclusive of an £8.1 million settlement consideration recognised on milestone payments due from Beyond Air Inc., following FDA approval for its LungFit PH device, together with a profit of £0.3 million on discontinued operations.

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ADAMS PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTH PERIOD TO 30 SEPTEMBER 2022

The company had net cash balances of £13.8 million at 30 June 2022 and had increased to £17.6 million at 31 August 2022 following receipt of the first of 3 milestone payments due from Beyond Air. The shareholding of Adams at 30 September 2022 was, and continues to be, 0.73 per cent of the Niox shares in issue.

C4XD is a pioneering drug discovery company combining its enhanced DNA-based target identification and candidate molecule design capabilities to efficiently deliver world-leading medicines which are developed by licensing partners. C4XD has a number of existing partnership deals including a milestone and royalties agreement with Indivior UK Limited for its oral Orexin-1 receptor antagonist for the treatment of opioid addiction disorders worth up to $284 million and a second milestones and royalties out-licensing agreement with Sanofi for its IL-17A inhibitor programme worth up to €414 million. There is also potential for single‐ digit Sanofi royalties. In addition, the company has continued to drive other key programmes towards partnering with a near term focus on inflammatory and oncology diseases. C4XD reported a loss after tax of £4.5 million in the six months ending 31 January 2022 inclusive of R&D investment of £3.9 million and with only minimal revenues of £0.01 million. Cash balances at 31 January 2022 amounted to £11.7 million but post that period end, the company raised cash of £5.7 million by way of a share placing in August 2022. The shareholding of Adams in C4XD at 30 September 2022 was, and continues to be, 1.98 per cent of the C4XD shares in issue.

Seeing Machines is an AIM listed industry leader in advanced computer vision technologies. The company designs Artificial Intelligence / AI powered operator monitoring systems using camera-based optics and embedded processing to improve transport safety in automotive, commercial fleet, aviation, rail and off- road markets. The technology incorporates warnings when human state attention impairment is identified, in order to re-engage the operator or driver. Seeing Machines continues to invest in R&D and grow as an automotive leader in such technology having now won contracts with a total of ten automotive Tier 1 global customers covering 14 automotive driver monitoring safety ("DMS") programmes. At 30 June 2022, there were 447,225 vehicles on the road featuring Seeing Machines' DMS technology, an increase of 246% over the previous period. In the year to 30 June 2022, Seeing Machines reported underlying revenue growth of 22 per cent when using constant currency, to give revenues of A$54.4 million and a loss for the year of A$25.3 million. Seeing Machines' cash balances at 30 June 2022 amounted to A$58.8 million and were subsequently strengthened in October 2022 through a US$65m (A$103m) investment in the company by an existing customer, Magna International, via an exclusivity payment of US$17.5m and up to $47.5m of convertible loan notes which mature in October 2026 and have a conversion rate per ordinary share of £0.11. The shareholding of Adams in Seeing Machines as at 30 September 2022 was, and continues to be, 0.19 per cent of the Seeing Machines shares in issue.

Access Intelligence is an AIM listed London based technology innovator delivering Artificial Intelligence / AI Software-as-a-Service solutions for the global marketing and communications industries. The company combines AI technologies with human expertise to analyse data and provide strategic insights as a single, real-time view of what is important. It is supported by partnerships with the world's largest data providers and social media platforms including Twitter, Reddit and Twitch. For the half year ended 31 May 2022, Access Intelligence reported revenues of £32.7 million and delivered a positive EBITDA of £0.3 million before exceptional costs associated with the integration of Isentia Group which had been acquired in September 2021. The loss for the half year amounted to £7.0 million after exceptional costs and inclusive of

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