We use a number of key performance indicators (KPIs) to assess progress against our strategic objectives, both financial and non-financial

As part of our commitment to enhanced narrative reporting, we have carried out a review of the Company’s key performance indicators (KPIs), ensuring that they are aligned with the core pillars of our strategy, how we measure progress against these, and how we manage risk. Based on this exercise, we have updated our KPIs, outlined below, looking at both financial and non-financial metrics. These are not specific targets, but metrics that are reported on each year to show progression of the business and reflect the nature of the asset class.

Targeting a portfolio of 15-20 companies, adding 2-3 new companies a year, with a goal of delivering 3-5 products to the point of approval over a rolling 10 year basis

Rationale

A measurement of our progress towards our 10-year goals, with a focus on total number of portfolio companies and the average number of portfolio companies founded over the previous three years. Critical to strategy is to create a diversified portfolio across the development cycle over time.

Progress in the year

  • Total of 11 portfolio companies at year end
  • Two new companies founded, Resolution and Purespring and 1 new company added to the portfolio, Neogene
  • 2.3 is the average number of portfolio companies founded in the last three years
  • One company closed, Azeria
  • 425 opportunities reviewed during the year

Access to capital, seeking to maintain a capital pool of a minimum of 2-3 years of expected capital deployment

Rationale

A strong balance sheet and deep pool of capital underpins our strategy enabling us to take a long-term view and support our portfolio companies as they scale, remaining a significant shareholder through to product approval.

Progress in the year

  • £189m deployed in the year
  • £578m capital pool at 31 March 2021
  • Capital pool held predominantly in cash and cash equivalents throughout the year – highly liquid
  • 4.2 years of available capital* to fund new companies and existing portfolio

NAV growth

Rationale

We seek to deliver strong risk-adjusted returns for shareholders over the long term, recognising that our NAV can be volatile year on year. We have a long-term target of 15% IRR on NAV and a key metric of five-year compound NAV growth at year end.

Progress in the year

  • 4.4% growth NAV per share in the year
  • 11.8% growth in the life science portfolio

Progress in de-risking pre-clinical and early stage clinical companies

Rationale

A measurement of progress of our portfolio companies through the pre-clinical and clinical pathway, with the key measurements of number of clinical candidate nominations and clinical programmes across the portfolio.

Progress in the year

  • Achilles and Gyroscope dosed first patients in lead programmes
  • Freeline’s lead programme progressing to dose confirmation trial
  • Quell, SwanBio and Anaveon announced candidates for first clinical programmes
  • Seeking partner for Autolus AUTO3

Portfolio progress to patient impact

Rationale

A measurement of our progress in delivering transformational treatments to patients, with a focus on total number of programmes in pivotal trial, and then approval for any product. We measure pivotal studies and approved products on a cumulative basis to reflect our 10-year rolling targets and the timeframe it takes to develop products.

Progress in the year

  • One programme enrolling for pivotal trial, AUTO1 in adult ALL (Autolus)

People in the Syncona team

Rationale

The Syncona team is differentiated by its people and the quality and depth of the team’s expertise is critical to the success of the Company. We measure the depth of the team at year end to show its development over time.

Progress in the year

  • Chief Human Resources Officer hired
  • Expanded finance, legal and investor relations teams

*Available years of capital calculated using mid point of capital deployment guidance range