Silence Therapeutics plc 
Annual report and financial statements 2015
Silence Therapeutics plc Annual report and financial statements 2015 Strategic report
01 Introduction
02 Chairman’s statement
03 Silence Therapeutics at a glance
04 Our business
06  Chief Executive’s review
10  Financial review
11 Risk factors
12  Research ethics
Corporate governance
13  Board of Directors
14 Corporate governance report
19 Directors’ remuneration report
21  Directors’ report
23 Statement of Directors’ responsibilities
Financial statements
24  Independent auditor’s report
26  Consolidated income statement
26  Consolidated statement of 
comprehensive income
27  Consolidated balance sheet
28  Consolidated statement of changes 
in equity
29  Company balance sheet
30  Company statement of changes 
in equity
31  Cash flow statements
32  Notes to the financial statements
52 Company information and advisers
52 Glossary
Contents
CONTENTS
Silence Therapeutics is a leading 
RNA technology company.  Silence Therapeutics plc  
Annual report and financial statements 2015
01
www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
•	 In	the	preliminary	analysis	of	
the	Phase	2a	trial	in	pancreatic	
cancer,	Atu027	in	combination	with	
gemcitabine	showed	a	good	safety	
profile	and	early	signs	of	efficacy	
•	 US	patent	granted	in	December	
2015,	covering	broad	modifications	
of	short	interfering	RNA	(siRNA)	
molecules
•	 Atu027	Phase	2a	trial	met	its	primary	
endpoint.	The	follow	up	data	showed	
consistent	overall	survival	(OS)	with	
the	progression	free	survival	(PFS)	
announced	in	the	preliminary	report	
in	May	2015	(see	separate	release)	
•	 Licensee	Quark	Pharmaceuticals	
initiated	in	Phase	3	and	Phase	2	
trials	in	delayed	graft	function	(DGF)	
and	acute	kidney	injury	(AKI).	First	
patient	dosing	confirms	their	financial	
commitment	to	two	full	trials
HIGHLIGHTS
During the year
Post year end events
•	 Encouraging	proof	of	concept	
data	obtained	in	animal	models	of	
pulmonary	arterial	hypertension	
(PAH)	with	our	lung	delivery	system	
DACC	targeting	a	validated	gene
•	 Improved	messenger	RNA	(mRNA)	
delivery	to	liver	by	20	fold	and	
translation	to	non‑human	primates	
(NHP)	achieved
•	 Excellent	results	in	GalNAc	
conjugated	siRNA	activity	using	
an in	house	linker	design
•	 Promising	therapeutic	benefit	
obtained	in	a	PAH	animal	model	
using	DACC	to	target	a	novel	gene
•	 The	role	of	PKN3	(Atu027’s	target	
gene)	in	metastasis	was	validated	
by	an	independent	publication	
presenting	significant	business	
development	opportunities
•	 Equity	placing	in	April	2015	
raised net	proceeds	of	£38.9m
•	 Loss	after	tax	for	the	period	of	
£6.6m	(2014:	£11.1m)
•	 Net	cash	and	cash	equivalents	
of	£51.9m	at	31	December	2015	
(2014: £21.9m)
•	 Legal	opinions	support	our	
recently	awarded	US	patent	
covering	nucleotide	modifications	
at	the	2’	position.	AtuRNAi
®
	is	
now	a	significant	value	driver	for	
the Company
•	 Arbitration	proceedings	
instigated	against	licensee	
Quark Pharmaceuticals	for	a	
$3m milestone	payment
•	 Continued	discussions	with	US	
company	to	negotiate	an	AtuRNAi
®
	
licence	for	a	single	product	
Our technology harnesses the body’s natural 
mechanisms to create therapeutic effects within its 
own cells. This technology can selectively silence or 
replace any gene in the genome, modulating gene 
expression up as well as down in a variety of organs 
and cell types.
We have developed proprietary modifications 
to improve the robustness of RNA sequences, 
together with advanced liposomal and conjugated 
chemistries to enhance the delivery of therapeutics. 
This allows the development of therapeutics for 
diseases with high unmet medical need.
Introduction Silence Therapeutics plc  
Annual report and financial statements 2015
02
www.silence-therapeutics.com
Non‑Executive	to	an	interim	Executive	
Chairman	role.	Happily,	Ali’s	family	
crisis	resolved	and	he	returned	to	the	
Company	in	September,	at	which	stage	
Dr	Riddell	chose	to	retire	from	the	Board	
and	I	was	appointed	in	his	place.	Since	
September,	we	have	been	pleased	to	
welcome	Alistair	Gray	to	the	Board	and	
to	Chair	the	Audit	Committee.	In	January	
2016,	Dr	Simon	Sturge	retired	from	
the	Board	following	his	appointment	
as	Chief	Operating	Officer	of	Merck	
Healthcare,	based	in	Darmstadt,	
Germany.	Ali	and	I	have	been	working	
closely	together	to	refine	our	strategy,	
determine	the	short‑term	goals	and	
to	recruit	excellent	people	to	drive	us	
to	meet	both	short‑term	and	strategic	
targets	of	a	balanced	product	pipeline	
taking	full	advantage	of	our	strong	
technology platform.
On	behalf	of	the	Board	of	the	Company,	
I would	like	to	thank	our	shareholders	for	
their	continued	support	and	input	to	the	
development	of	Silence	in	2015	and	into	
the	future.	As	a	Board,	we	are	committed	
to	maximising	the	value	of	the	Company	
and	hence	the	value	to	shareholders.	
Looking forward 
As	a	Board	we	are	excited	about	2016	
and	beyond,	as	we	look	to	translate	
our	preclinical	excellence	today	into	
clinical	results	and	products	in	the	
future.	We	look	forward	very	positively	
to	the	development	of	our	pipeline	and	
business,	and	to	translating	that	into	
growth	in	shareholder	value.
Dr Stephen Parker 
Non‑Executive	Chairman
29	April	2016
We have attracted 
significant levels of 
new funding, led by 
Invesco and Woodford, 
and well‑supported by 
existing investors.
Overview
2015	proved	to	be	an	eventful	year	
for	your	Company,	in	which	we	have	
undertaken	significant	restructuring	and	
strengthening	of	most	aspects	of	the	
Company,	from	the	Board	downwards.	
Most	notably,	we	have	attracted	
significant	levels	of	new	funding,	led	
by	Invesco	and	Woodford,	and	being	
well‑supported	by	existing	investors	
which,	for	the	first	time	in	the	Company’s	
history,	has	enabled	us	to	put	in	place	
longer‑term	goals	and	start	to	build	the	
necessary	structure	to	achieve	them.	The	
Phase	1/2a	trial	of	Atu027	in	pancreatic	
cancer	has	continued	to	run,	with	final	
data	becoming	available	in	April	2016.	
Our	IP	position	was	strengthened	
significantly	with	the	granting	of	a	
US	patent	giving	us	protection	for	
modifications	to	RNA	over	much	shorter	
base	lengths	than	previously;	we	
expect	that	this	development	will	lead	
to	a	significant	increase	in	outlicensing	
opportunities.
During	2015	we	restructured	the	head	
office	in	London,	moving	into	a	more	
modern	office	and	strengthening	several	
key	functions,	including	Finance	and	
Business	Development.	We	undertook	a	
significant	review	of	strategic	priorities	
and	research	strategy,	increasing	
resources	in	key	areas	in	the	field	of	
conjugation	chemistry	and	mRNA.	We	
continue	to	recruit	experienced	scientists	
in	these	fields	in	our	Berlin	laboratories	
and	we	have	made	significant	progress	
with	GalNAc‑conjugated	delivery	of	
siRNAs.	The	priority	is	to	apply	this	to	
build	a	broad	pipeline,	covering	delivery	
to	the	liver	as	well	as	our	existing	
strength	of	liposomal	delivery	to	the	
vascular	system	within	organs	such	as	
the	lung,	which	is	a	unique	position	in	
the	field.	
mRNA	therapeutics	is	an	extremely	
promising	prospect,	which	our	existing	
strengths	in	liposomal	delivery	make	us	
well‑suited	to	exploit.	We	are	starting	
to	see	good	progress	in	research	in	
this	field	and	are	hopeful	of	significant	
development	through	2016.
There	were	several	significant	
management	changes	in	the	period.	In	
July	2015	we	announced	that	our	Chief	
Executive,	Ali	Mortazavi,	was	obliged	to	
take	a	period	of	compassionate	leave	
and	that,	in	his	absence,	the	Chairman,	
Dr	Alastair	Riddell	would	switch	from	a	
2015 proved to be an eventful year for your Company, 
in which we have undertaken significant restructuring 
and strengthening of most aspects of the Company, 
from the Board downwards.
Chairman’s statement Silence Therapeutics plc  
Annual report and financial statements 2015
03
www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
The	prospects	for	Silence	have	never	been	greater	than	today.	
RNA therapeutics	has	made	significant	technological	strides	and	is	now	
able	to attract	enough	capital	to	transition	its	technology	to	the	clinic.
Silence Therapeutics at a glance
•	 Building	a	Technology	Strategy	
Board	to	help	achieve	gold	standard	
drug	development
•	 Collaborations	with	world	leading	
research	institutions	to	develop	
most	promising	drug	candidates
•	 Internal	algorithm	for	cost	effective	
preclinical	drug	development	with	
clear	go/no‑go	milestones
•	 Completed	Phase	2a	study	in	
metastatic	pancreatic	cancer	
using	Atu027	in	combination	with	
gemcitabine
•	 Safety	and	tolerability	of	AtuRNAi
®
	
well	established	with	over	
400 patients	dosed	so	far
•	 Licensee	Quark	Pharmaceuticals Inc.	
begins	Phase	3	study	in	delayed	graft	
function	(634	patients)	and	Phase	2	
in	acute	kidney	injury	(340 patients)
•	 Deliver	both	short	interfering	
RNA (siRNA)	and	messenger	
RNA (mRNA)
•	 Strong	potential	with	other	
payloads including	microRNA	
and gene	editing	tools	such	as	
CRISPR/CAS9
•	 New	mRNA	technology	replaces	
gene	expression	where	it	is	missing
•	 mRNA	delivery	produces	therapeutic	
levels	of	protein	in	preclinical	in vivo	
animal	models
•	 Potential	to	be	used	in	genetic	
deficiencies,	vaccines	and	
infectious diseases
•	 Patented	RNA	interference	(RNAi)	
platform,	known	as	AtuRNAi
®
•	 Proprietary	modifications	to	improve	
the	robustness	of	RNA	sequences
ABOUT US
•	 £51.9m	cash	and	cash	
equivalents	at	31	December	2015	
(2014: £21.9m)
Gene silencing
Gene replacement 
Delivery systems 
Clinical stage 
Research and development
Cash resources Silence Therapeutics plc  
Annual report and financial statements 2015
04
www.silence-therapeutics.com
Our technology
We	have	developed	proprietary	
modifications	to	improve	the	robustness	
of	RNA	sequences,	together	with	
advanced	liposomal	chemistries	to	
enhance	the	delivery	of	therapeutic	
RNA	molecules.	Our	technology	can	
selectively	silence	or	replace	the	
expression	of	virtually	any	gene	in	the	
genome,	modulating	expression	up	as	
well	as	down	in	a	variety	of	organs	and	
cell	types,	in vivo.
This	allows	the	development	of	
therapeutics	for	diseases	with	
high	unmet	clinical	need.	Silence’s	
technology	is	currently	in	the	clinic	
in a Phase	2a	pancreatic	cancer	trial.
RNA interference
RNA	is	one	of	the	two	types	of	nucleic	
acids	found	in	all	cells	–	the	other	
being	DNA.	RNA	is	the	messenger	that	
takes	a	copy	of	the	genetic	information	
stored	in	DNA	within	a	cell’s	nucleus	
and	translates	it	into	instructions	for	the	
manufacture	of	proteins	in	that	cell.
RNAi	is	a	method	of	regulating	or	
‘silencing’	gene	expression.	This	
technology	can	be	engineered	to	
selectively	silence	potentially	any	
gene	in	the	genome,	preventing	
the	overexpression	of	that	gene	
and	reducing	the	production	of	
disease‑causing	proteins.
Our	patented	RNAi	platform	is	known	
as	AtuRNAi
®
.	It	is	based	on	specific,	
proprietary	siRNA	modules,	stabilisation	
technology	and	exclusive	tailored	
features.	siRNA	requires	delivery	
systems	in	order	to	enable	it	to	enter	into	
target	cells	within	the	body.	Silence	has	
delivery	systems	targeting	the	liver	and	
the	endothelium.
Messenger RNA
Messenger	RNA	(mRNA)	delivery	can	
stimulate	production	of	target	proteins	
in	conditions	where	they	are	low	
or missing.	
This	way,	improved	gene	expression	
is	achieved	without	having	to	make	
permanent	changes	to	the	genome,	
reducing	safety	concerns.	It	has	
potential	uses	in	genetic	deficiencies,	
vaccines	and	infectious	diseases.
We	have	demonstrated	our	ability	to	
deliver	functional	mRNA	in vivo	and	are	
actively	exploring	new	opportunities	in	
this	space.	
Silence Therapeutics has a genetic toolkit with our own 
therapeutic payloads to modulate gene expression up 
as well as down in preclinical in vivo models, and unique 
delivery systems for a variety of organs and cell types. 
OUR GENETIC TOOLKIT
Our business Silence Therapeutics plc  
Annual report and financial statements 2015
05
www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
We have an international network of leading research 
collaborators, who are central to developing our 
technology and programmes. 
OUR GENETIC TOOLKIT
Payload Delivery system Translation 
Development 
programme
+ + =
AtuPLEX DACC HepaPLEX MacPLEX GalNAc
siRNA
(short interfering)
Gene editing payloads
(CRIPSR/Cas9, ZFN)
mRNA
(messenger)
Gppp AAAA
Gppp AAAA Silence Therapeutics plc  
Annual report and financial statements 2015
06
www.silence-therapeutics.com
In a turbulent year for 
drug development 
globally, good progress 
has been made in new 
delivery systems.
With	the	commencement	of	the	Quark	
trials,	the	approach	from	a	potential	
licensee	and	the	significant	broadening	
of	the	AtuRNAi
®
	patent	estate,	we	are	of	
the	belief	that	these	opportunities	alone	
could	be	very	significant	relative	to	the	
current	size	of	the	Company.
Overview
In	a	turbulent	year	for	drug	development	
globally,	good	progress	has	been	made	
in	new	delivery	systems.	In	addition,	we	
have	successfully	completed	our	Atu027	
Phase	2a	pancreatic	cancer	trial,	meeting	
its	primary	endpoint.	Despite	good	
technological	advancements,	senior	
hires	and	execution	of	the	research	plan	
could	have	been	more	efficient.	We	are	
committed	to	hiring	highly	motivated	and	
capable	leaders	across	the	organisation	
and	are	aggressively	addressing	this	
issue	in	2016.	
Atu027
The	preliminary	results	of	the	Atu027‑I‑02	
Phase	2a	study	did	not	identify	any	
safety	issues	with	the	combination	of	
Atu027	with	gemcitabine	in	pancreatic	
cancer.	In	addition,	patients	exposed	
to	a	33%	higher	dose	of	Atu027	
(arm 2)	presented	a	longer	median	
duration	of	progression	free	survival	
(PFS):	5.33 months	compared	to	
1.81	months	for	those	on	the	lower	
Atu027	exposure	regimen	(arm	1).	
A	post‑hoc	analysis	of	patients	with	
metastatic	pancreatic	cancer	showed	a	
median	PFS	of	1.61	for	arm	1	vs.	2.89	
months	for	arm	2	(p=0.0247)	which	is	
statistically significant.	
2015	was	a	challenging	year	for	the	
biotechnology	sector	globally	but	a	
significant	one	for	Silence	Therapeutics.	
Modulating	gene	expression	on	and	
off	in vivo	remains	a	difficult	technical	
challenge.	However,	for	the	first	
time	in	its	history,	the	Company	has	
both	a	combination	of	world	leading	
technologies	and	the	balance	sheet	to	
create	a	unique	and	truly	world	class	
biopharma	company.
We	believe	we	are	making	material	
improvements	in	new	delivery	systems	
as	seen	in	the	progress	we	have	made	
in	GalNAc	siRNA	conjugates.	The	
ability	to	mediate	RNAi	in	the	liver	
subcutaneously	as	opposed	to	an	
invasive	intravenous injection	opens	up	
entirely	new	indications	which	were	not	
accessible	to	a	liposomal	system.
In	addition	to	progress	in	delivery,	our	
proprietary	siRNA	chemistry	AtuRNAi
®
	
has	been	strengthened	with	the	granting	
of	a	new	US	patent.	Although	parts	
of	our	patent	estate	start	to	expire	in	
2023,	the	importance	of	our	chemical	
modification	technology	is	being	realised	
as	siRNA	pipelines	are	maturing.	We	now	
expect	to	be	able	to	capitalise	on	our	
intellectual	property	which	was	first	filed	
in	2003.	
Chief Executive’s review
2015 was a difficult year for the biotechnology 
sector globally but a significant one for Silence 
Therapeutics. Silence Therapeutics plc  
Annual report and financial statements 2015
07
www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
The	current	analysis,	including	the	follow	
up	data,	showed	that	subjects	in	the	
higher	dosed	arm	(arm	2)	of	the	study	
had	a	median	overall	survival	(OS)	of	
7.79	months	compared	to	5.62	months	
for	the	lower	dose	(arm	1,	p=0.61),	with	
35%	of	patients	being	censored.	For	the	
metastatic	group	only,	the	median	OS	in	
the	higher	dosed	group	was	6.74	months	
compared	to	3.29	(p=0.6)	for	the	lower	
dose	group,	with	26%	of	patients	being	
censored.	
Separately,	the	importance	of	PKN3	in	
metastatic	progression	was	validated	
during	the	period	by	a	third	party	in	
a	peer	reviewed	publication.	Further	
Atu027	preclinical	work	to	optimise	
effective	PKN3	targeting	is	planned	
and	we	believe	that	this	validation	
of	our	target	could	lead	to	business	
development	opportunities.	
Patent award
In	December	2015,	the	Company	was	
granted	a	new	US	patent	(9,222,092).	
This	addition	to	the	Company’s	existing	
patent	portfolio	considerably	strengthens	
its	position	with	far	broader	claims	that	
cover	several	nucleotide	modifications	
at	the	2’	position	and	require	shorter	
modified	stretches	than	claimed	in	our	
previous	patents.	Further	claims	yet	are	
being	sought.	
Since	the	granting	of	this	patent	and	
separately	to	the	above	licensing	
discussions,	the	Company	has	received	
advice	from	three	separate	law	firms	
indicating	that	the	issued	claims	
potentially	capture	other	development	
stage	siRNA	candidates.	
We	have	invited	and	hereby	invite	any	
companies	that	are	developing	modified	
siRNA	candidates	that	fall	within	the	
claims	of	our	patents	to	enter	into	
licensing	negotiations	with	us.
GalNAc conjugation
During	the	period,	Silence	has	increased	
investment	in	conjugation	chemistry.	
In	particular,	substantial	progress	has	
been	made	in	GalNAc	conjugated	siRNA	
for	liver	delivery.	GalNAc	conjugation	
allows	receptor‑mediated	siRNA	delivery	
to	hepatocytes	using	less	complex	
technology	than	liposomal	nanoparticles,	
which	has	the	important	advantage	of	
being	administered	subcutaneously	
rather	than	intravenously.	This	difference	
opens	up	new	therapeutic	areas.	
We	have	obtained	encouraging	functional	
data	using	our	own	linker	design	to	
bind	the	targeting	ligand	(GalNAc)	to	
the	siRNA	cargo:	80%	knockdown	was	
achieved	in	mRNA	levels	of	a	tool	target	
with	a	1mg/kg	dose.	Approximately	
50%	mRNA	knockdown	was	observed	
28	days	after	a	single	dose	of	2mg/kg.	
We	believe	that	the	potency	observed	is	
competitive	relative	to	our	peers.	
In	light	of	this	development,	those	
‘multiple	shots	at	goal’	projects	better	
suited	to	GalNAc	will	be	transitioned	to	
this	technology.	Material	achievements	
in	GalNAc	over	a	short	period	of	time	will	
result	in	the	liver	being	a	major	focus	for	
Silence	going	forward.	Consequently,	we	
are	actively	hiring	experts	in	this	space.	
Liposomal siRNA delivery
Also	in	siRNA	delivery,	our	liposomal	
systems	targeting	the	vasculature	
continue	to	be	optimised	as	we	aim	to	
maximise	potency.	Our	lung	targeted	
system	(DACC)	has	shown	promising	
proof	of	concept	results	in	representative	
mouse	models	of	pulmonary	arterial	
hypertension,	targeting	both	a	validated	
and	a	novel	gene.	In	both	experiments,	
the	therapeutic	benefit	was	measured	
by	a	reduction	in	right	ventricle	systolic	
pressure	(RVSP)	as	well	as	a	reduction	in	
pathologic	pulmonary	vessel	remodelling.	
We	are	committed	to	hiring	highly	motivated	and	capable	
leaders	across	the	organisation	and	are	aggressively	addressing	
this	issue	in	2016.
Net equity 
raise of 
£38.9m 
Over  
1,000 patients 
dosed in  
Phase 2&3  
trial 
Cash 
and cash 
equivalents  
£51.9m  Silence Therapeutics plc  
Annual report and financial statements 2015
08
www.silence-therapeutics.com
Legend
	
Unmodified	RNA	(OH)
	
2’	O‑Methyl
	
O‑Alkyl
	
2’	Fluoro
	
2’	Alkoxy
	
2’	Alkyl
	
2’	Amino
		
Any	modification/different		
modification	to adjacent	nucleotide
mRNA therapeutics
The	Company	has	improved	its	mRNA	
delivery	capabilities,	mainly	for	liver	
delivery,	achieving	a	20	fold	increase	
in protein	production	from	the	delivered	
mRNA	cargo	in	mice.	In	addition,	our	
mRNA	technology	has	successfully	
translated	to	higher	species,	showing	
activity	in	NHP.	Progress	in	optimising	
our	mRNA	delivery	capabilities	will	be	
key	to	enabling	both	protein	replacement	
and	gene	editing	applications.	
Initial	in vivo CRISPR/Cas9 studies	
have begun.	
Construct	engineering	is	being	explored	
in	parallel	in	order	to	optimise	mRNA	
stability	and	improve	the	tolerability	
profile.	We	are	actively	investigating	
indications	in	this	area.	
Licensing
Silence	is	pleased	to	announce	the	
progress	of	two	of	our	licensee’s	clinical	
programmes	into	a	pivotal	Phase	3	for	
delayed	graft	function	and	a	Phase	2	for	
acute	kidney	injury.	First	patients	have	
now	been	dosed	and	we	will	be	giving	
guidance	as	to	the	potential	financial	
value	of	these	trials	to	Silence.	
According	to	the	out‑licensing	deal	terms	
and	because	of	Quark’s	arrangements	
with	its	partner	Novartis,	we	believe	that	
Silence	is	now	due	$3m,	equating	to	a	
15%	milestone	payment.	After	numerous	
unsuccessful	attempts	at	resolving	this	
issue	with	Quark,	we	have	decided	to	
instigate	arbitration	proceedings	and	
will	update	the	market	accordingly.	
We remain	confident	of	our	case	but	no	
revenue	has	been	recognised	in	the	year	
due	to	the	uncertainty.
However,	Quark	has	confirmed	in	writing	
that	it	will	honour	its	financial	obligations	
to	Silence	should	both	these	trials	come	
to	a	successful	conclusion.	Silence	
is	entitled	to	15%	of	all	sub‑licence	
revenues	from	Novartis.	In	2010,	Quark	
announced	potential	milestones	of	up	to	
$650m	from	Novartis	beyond	the	$30m	
already	received.	Silence’s	direct	licence	
with	Quark,	in	the	absence	of	Novartis,	
sets	out	milestones	of	up	to	€2.5m	on	
approval	and	launch,	with	royalties	
of 4%.
After	initial	discussions	in	2013,	the	
Company	has	again	been	approached	
by	a	US	company	for	a	licence	for	a	
clinical	product.	As	in	the	case	of	Quark,	
the	licence	is	for	the	use	of	the	critical	
chemical	modifications	of	AtuRNAi	to	
enable	the	safe	transit	of	the	siRNA	into	
a	target	cell.	We	continue	to	discuss	
terms	with	this	company.	In	light	of	the	
Chief Executive’s review continued
US Patent no. 7,452,987 
•	 Double	stranded	stretches	of	
15‑23 nucleotides
•	 Alternating	single	2’	O‑Methyl	
modified	with	unmodified	
ribonucleotides,	each	modified	
nucleotide	pairing	with	an	
unmodified one
US Patent no. 7,893,245 
•	 Double	stranded	stretches	of	
17‑30 nucleotides
•	 Alternating	single	2’	O‑Methyl	
modified	with	modified	or	
unmodified ribonucleotides,	being	
the	2’	O‑Methyl	modified	nucleotides	
shifted	by	one	position	in	one	strand	
relative	to the other
Issue date
17‑30nt 15‑23nt
Timeline
2011 2008 Silence Therapeutics plc  
Annual report and financial statements 2015
09
www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
fact	that	these	licensing	negotiations	
have	started	late	in	the	development	of	
the	US	company’s	candidate	and	the	
absolute	requirement	of	AtuRNAi
®
	to	be	
the	therapeutic	agent,	we	believe	that	
we	are	in	a	strong	position	to	secure	
robust	financial	terms.	We	will	update	the	
market	accordingly.
Board changes and 
Technology Advisory Board
Lars	Karlsson	stepped	down	as	
Head of Research	from	the	Board.	
Silence	is	seeking	a	new	Head	of	
Research,	which	is	a	challenging	task	in	
a	highly	specialised	field	such	as	RNA	
therapeutics.	In	the	meantime,	while	we	
identify	the	ideal	candidate,	we	are	in	
the	process	of	setting	up	a	Technology	
Advisory	Board.	This	Board	will	consist	
of	highly	experienced	executives	from	
pharma	and	biotech	with	specific	
knowledge	in	RNA	therapeutics.	It	is	
envisaged	that	this	Board	will	regularly	
convene	with	senior	scientists	from	
within	the	Company	to	assist	in	the	
implementation	of	the	research	plan	
that	is	currently	being	executed.	
Two members	of	this	team	have	already	
been appointed.	
Dr	Stuart	Collinson	resigned	from	the	
Board	due	to	an	unexpected	increase	
in	his	commitments	to	Arcturus	
Therapeutics	and	other	companies	with	
which	he	is	working.	Both	Dr	Collinson	
and	the	Board	expressed	their	regret	
that	he	was	unable	to	remain	on	the	
Silence Board.	
The	Company	will	seek	to	make	a	
further	non‑executive	appointment	to	
the	Board	and	continues	to	look	to	hire	
the	highest	calibre	non‑executives	with	
specific	expertise	in	different	areas	of	
the business.
Outlook 
Silence	Therapeutics	remains	one	of	the	
global	leaders	in	RNA	therapeutics.	We	
have	made	significant	strides	in	making	
the	technology	behind	the	platform	more	
reproducible	and	robust.
A	recruitment	drive	in	the	translational	
science	team,	focusing	on	liver	
indications,	will	transition	the	Company	
from	technology	to	products.	With	
the	strength	of	our	balance	sheet	to	
support	the	breadth	of	our	platform,	
we	look	forward	to	the	future	with	great	
confidence.	
Ali Mortazavi
Chief	Executive
29	April	2016
US Patent no. 9,222,092 
•	 Double	stranded	stretches	
(2‑20 nucleotides),	blunt	ended	
with overhang
•	 Stretches	with	modifications	at	the	
2’ position,	selected	from:	Amino,	
Fluoro,	Methoxy,	Alkoxy	or	Alkyl.	Said	
modified	ribonucleotide	is	flanked	on	
one	or	both	sides	by	a	ribonucleotide	
modified	with	a	different	modification	
from	the	same selection
•	 The	number	of	in	the	group	of	
modified	ribonucleotides	is	selected	
from	1	to	10	and	the	number	of	
modified	ribonucleotides	in	the	
flanking	group	is	also	from	1	to	10
US Patent no. 8,324,370 
•	 Double	stranded	stretches	of	
17‑30 nucleotides
•	 Alternating	O‑Alkyl	modified	
with	modified	or	unmodified	
ribonucleotides,	being	the	O‑Alkyl	
modified	nucleotides	shifted	by	one	
position	in	one	strand	relative	to	
the other
US Patent no. 8,324,370 
•	 Double	stranded	stretches	of	
15‑30 nucleotides
•	 Blunt	ended	at	least	at	one	end
•	 Contiguous	alternating	modified	
ribonucleotides,	with	either	
unmodified	or differently	modified	
ribonucleotides
17‑30nt 15‑30nt
Timeline
2015 Silence Therapeutics plc  
Annual report and financial statements 2015
10
www.silence-therapeutics.com
Liquidity, cash, cash equivalents and 
money market investments 
The	Group’s	cash,	cash	equivalents	and	
money	market	investments	at	year	end	
totalled	£51.9m.	At	the	end	of	2014,	
Silence	had	cash,	cash	equivalents	and	
money	market	investments	of	£21.9m.	
A	total	of	£39.2m	net	was	raised	during	
2015	through	the	placing	and	exercise	
of options.	
The	net	cash	outflow	from	operating	
activities	in	2015	was	£8.3m	
(2014: £9.5m)	against	an	operating	loss	
of	£9.8m	(2014:	£12.0m).	
Other balance sheet items
Trade	and	other	receivables	at	year	end	
were	£1.6m	(2014:	£0.4m)	and	trade	and	
other	payables	were	£1.1m	at	year	end	
(2014:	£2.0m).	The	decrease	in	payables	
reflects	the	drop	in	research	spending	at	
year	end	and	the	retirement	of	balances	
related	to	historic	contracts.	
Goodwill	at	year	end	was	£6.7m	
(2014: £7.1m).	The	movement	in	goodwill	
during	the	year	related	to	foreign	
exchange.
Timothy Freeborn
Chief	Financial	Officer
29	April	2016
Financial review
During	2015,	Silence	improved	its	
cash	position	through	the	£38.9m	net	
proceeds	of	its	share	placing	in	May	
2015.	The	funds	raised	have	allowed	the	
Company	to	expand	development	of	its	
platform	technology,	in	particular	with	
strong	progress	in	delivery	of	messenger	
RNA	and	conjugated	delivery	of	siRNA.
Research and 
development expenditure
Research	and	development	expenditure	
expenses	decreased	to	£7.1m	during	
the	year	(2014:	£8.9m).	This	reflected	the	
completion	of	dosing	in	the	Phase 2a	
clinical	trial	and	the	lower	value	of	
the euro	versus	sterling.
Administrative expenses 
Administrative	expenses	during	the	year	
decreased	to	£2.7m	(2014:	£3.3m).	This	
reflects	two	non‑cash	reductions	in	
costs.	Firstly,	a	£0.4m	fall	in	the	charge	
for	share‑based	payments.	Secondly,	
in	our	US	subsidiary,	a	£0.4m	credit	
reflecting	retirement	of	balances	related	
to	historic	contracts.
Financial income
Bank	interest	included	in	finance	income	
was	higher	at	£0.2m	(2014:	£0.1m)	
mainly	due	to	higher	average	cash	
balances	during	the	year.
Taxation
During	the	year,	we	received	a	research	
and	development	tax	credit	of	£1.5m	
(2014:	£0.9m)	in	the	UK	in	respect	of	
R&D	expenditure	in	2014,	whose	cash	
value	is	reflected	in	the	results	for	2015.	
We	have	accrued	£1.3m	recognising	
a	current	tax	asset	in	respect	of	2015	
research	and	development	tax	credits	
as	we	are	now	confident	we	are	able	to	
make	this	claim	for	the	year.	
During 2015 Silence improved its cash position through 
the £38.9m net proceeds of its share placing in May 
2015. The funds raised have allowed the Company to 
expand development of its platform technology, in 
particular with strong progress in delivery of messenger 
RNA and conjugated delivery of siRNA. Silence Therapeutics plc  
Annual report and financial statements 2015
11
www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
The	Group’s	principal	activity	
is	biotechnology	research	and	
development.	As	with	any	business	
in	this	sector,	there	are	risks	and	
uncertainties	relevant	to	the	Group’s	
business.	The	Board	has	adopted	a	
risk	management	strategy	designed	
to	identify,	assess	and	manage	the	
significant	risks	that	it	faces.	While	the	
Board	aims	to	identify	and	manage	such	
risks,	no	risk	management	strategy	can	
provide	absolute	assurance	against	loss.
The	management	and	mitigation	of	
risks	is	a	key	focus	for	the	Board.	The	
Board	reviews	risks	at	its	regular	Board	
meetings,	including	but	not	limited	to	a	
financial	update,	corporate	development	
update	and	update	on	operations	to	
oversee	the	management	and	mitigation	
of	the	principal	risks	faced	by	the	Group,	
as	set	out	above.	The	operational	update	
includes	a	review	of	both	preclinical	and	
clinical	activities.
The	Board	periodically	reviews	the	
significant	risks	facing	the	business;	this	
review	includes	identifying	operational	
risks,	compliance	risks,	financial	risks	
and	risks	to	the	achievement	of	goals	
and	objectives.	Set	out	above	are	the	
key	risk	factors	associated	with	the	
business	that	have	been	identified	
through	the	Group’s	approach	to	risk	
management.	Some	of	these	risk	factors	
are	specific	to	the	Group,	and	others	are	
more	generally	applicable	to	the	biotech	
industry	in	which	the	Group	operates.	
The	Group	considers	that	these	risk	
factors	apply	equally	and	therefore	all	
should	be	carefully	considered	before	
any	investment	is	made	in	Silence.
Financial and non-financial key 
performance indicators (KPIs)
The	Directors	consider	cash	and	
research	and	development	spend	to	be	
the	Group’s	financial	KPIs	at	the	current	
stage	of	the	Company’s	development.	
These	are	detailed	in	the	financial	review.	
The	Directors	consider	that	the	most	
important	non‑financial	KPIs	relate	
to	the	validation	of	our	technologies,	
the	number	of	drugs	in	development	
by	stage	of	development	and	the	
number	of	research	collaborations,	
all of	which	are	discussed	in	the	
Chief Executive’s review.
This	report	was	approved	by	the	Board	
of	Directors	and	signed	on	its	behalf	by:
Ali Mortazavi
Chief	Executive
29	April	2016	
Risk factors
The	Board	has	adopted	a	risk	management	strategy	designed	to	identify,	
assess	and	manage	the	risks	that	it	faces.
PRINCIPAL RISKS ACTION TAKEN TO MANAGE THESE RISKS
Economic and 
financial risk
•	 Very	high	costs	of	product	development,	
where	products	have	lead	times	to	market	of	
many	years
•	 Lack	of	substantial	recurrent	revenue	stream
•	 Small	portfolio	of	products
•	 Subject	to	foreign	currency	exchange	
fluctuations
•	 Accounts	are	reviewed	on	a	monthly	basis
•	 Cash	position	reviewed	regularly	against	the	budget	(budget	
approved	by Board)
•	 All	payments	handled	within	framework	of	authorisation	limits
•	 Sizeable	deposits	held	in	euros	and	sterling
•	 Raise	of	funds	to	ensure	company	resources	to	meet	costs
Clinical and 
regulatory risk
•	 Drug	candidates	may	not	be	successful	due	
to	an	inability	to	demonstrate	in	a	timely	
manner	the	necessary	safety	and	efficacy	in	
a	clinical	setting	to	satisfaction	of	regulatory	
bodies	(FDA,	EMA)
•	 Reliance	on	third	parties	to	conduct	
clinical trials
•	 Use	of	external	third	party	regulatory	experts
•	 Use	of	the	Technology	Advisory	Board
•	 No	materials	released	unless	approved	by	a	qualified	person	at	
the suppliers
•	 The	Company	has	taken	out	insurance	against	risks	to	patients
Competition risk 
and intellectual 
property risk
•	 Intellectual	property	protection	may	expire	
before	products	are	successful	commercially
•	 Increased	interest	and	with	that	increased	
competition	in	the	RNA	technology	sector
•	 Staff	dedicated	to	monitoring	market	developments	and	providing	
competitor/peer	analysis
•	 Use	of	experienced	IP	advisers
•	 Obsolescence	or	alternative	technology	patent	challenge/litigation www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
12
Humane care and use of 
laboratory animals
Our commitment
It	is	our	mission	to	discover	and	
develop	safe	and	effective	medicines	
for	treatment	of	cancer	and	other	
life‑threatening	diseases	with	high	unmet	
medical	need.	We	have	both	legal	and	
ethical	obligations	to	ensure	the	safety	
and	efficacy	of	our	investigational	new	
medicines	prior	to	their	use	in	humans.	
The	use	of	laboratory	animals	represents	
an	integral	part	of	any	biomedical	
research	and	development	activities.	
While	we	are	actively	pursuing	alternative	
methodologies	to	reduce	and	substitute	
the	use	of	animals	in	our	research,	
currently	there	are	clear	regulatory	
requirements	to	assess	safety	and	
efficacy	of	novel	drug	candidates	in	
appropriate	animal	models	before	
moving	into	clinical	development.
Silence	Therapeutics	is	committed	
to	the	welfare	of	all	our	animals	used	
for	its	research	and	development	
programs, therefore:
•	 our	animal	studies	comply	with	
national	and	international	laws	and	
guidelines	for	care	and	welfare	for	
animals	in	research;
•	 we	minimise	animal	numbers	by	
using	alternative	scientific	methods	
whenever	appropriate	and	advance	
our	research	methodologies	
consistently.	Animals	must	not	
be	used	if	alternative	research	
methods	are	available	that	produce	
comparable	data	to	those	obtained	
from	using	animals	in	research;
•	 in	addition,	every	study	involving	the	
use	of	animals	is	subjected	to	an	
internal	committee	review	for	purpose	
and	significance,	for	use	of	alternative	
methodologies,	study	design	and	
feasibility	in	adherence	to	the	3Rs	
(reduce,	refine,	replace);
•	 we	ensure	that	only	certified	
employees,	sufficiently	trained	
and	qualified	in	care	and	skills,	are	
involved	in	conducting	and	planning	
of	animal	research	studies;
•	 all	our	laboratory	animals	are	
consistently	monitored	for	any	signs	
of	distress	and	pain	by	qualified	
staff members;
•	 environmental	enrichment	in	
husbandry	allows	the	animals	
to	perform	species‑specific	
behavioural repertoire;
•	 we	are	in	constant	dialogue	with	our	
independent	external	animal	welfare	
officer	providing	the	latest	information	
on	animal	husbandry	and	care;	and
•	 contract	research	laboratories,	
that	carry	out	work	for	Silence	
Therapeutics,	need	to	observe	the	
same	animal	welfare	standards.	
We	ensure	that	contractors	adhere	
to	local,	national	and	international	
regulations	and	guidance	and	we	
carry	out	additional	onsite	visits	
ourselves	as	appropriate.
The	German	Animal	Welfare	Act	contains	
some	of	the	strictest	legislation	in	the	
world	to	ensure	far‑reaching	protection	
for	animals	in	research.	Independent,	
external	authorities,	namely	the	State	
Office	of	Health	and	Social	Affairs	Berlin	
(Landesamt	für	Gesundheit	und	Soziales)	
and	animal	welfare	officers	on	site	
monitor	the	adherence	of	all	of	Silence’s	
animal	studies	to	the	Animal	Welfare	
Act	and	ensure	their	compliance	with	
the	latest	scientific	insights	and	highest	
standards	in	animal	welfare.	Our	animal	
facility,	programmes	and	documentation	
are	subject	to	regular	inspections	from	
external	state	and	local	authorities	
ensuring	proper	husbandry	and	care	
of research	animals.
Research ethics
It is our mission to discover and develop safe 
and effective medicines for treatment of 
cancer and other life‑threatening diseases 
with high unmet medical need.  www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
13
Alistair Gray
Non‑Executive Director
Alistair	joined	the	Board	on	12	November	2015	and	brings	with	him	a	wealth	of	
consultancy	and	business	experience.	Having	trained	as	an	accountant,	his	early	career	
was	in	senior	management	positions	with	Unilever	and	John	Wood	Group	PLC.	Alistair	
was	a	director	of	Arthur	Young	(now	Ernst	and	Young)	Management	Consultants	and	PA	
Consulting	Group.	Alistair	chaired	the	audit	and	remuneration	committees	of	AorTech	
International	PLC	and	Highland	Distillers	PLC,	as	well	as	the	Pension	Trustee	Board.	
Alistair	also	served	as	a	Fellow	of	the	Institute	of	Directors	and	Institute	of	Consultants.
Board of Directors
Ali Mortazavi
Chief Executive
Ali	joined	Silence	in	2012,	leading	its	refinancing,	and	refocused	the	business.	He	has	
extensive	expertise	in	UK	small	companies,	particularly	in	biotechnology	investment	
and	ventures.	Ali	has	over	17	years’	experience	in	finance	having	co‑founded	Evolution	
Securities	in	2001,	heading	up	the	Group’s	principal	trading	division.	
Timothy Freeborn
Chief Financial Officer and Company Secretary
Timothy	also	joined	Silence	in	2012,	bringing	over	20	years’	experience	in	finance.	After	
qualifying	as	a	chartered	accountant	and	specialising	in	corporate	tax,	he	spent	twelve	
years	as	a	financial	journalist	on	a	national	newspaper	and	eight	years	as	a	stockbroking	
analyst,	covering	electronics,	chemicals	and	alternative	energy.	
Dr Lars Karlsson – Head of Research and Development
Lars	Karlsson	served	as	the	Head	of	Research	and	Development	during	the	year,	resigning	from	his	role	on	5	April	2016.
Dr Alastair Riddell – Non‑Executive Chairman 
Alastair	Riddell	served	as	the	Non‑Executive	Chairman	during	the	year	and	acted	as	Executive	Chairman	from	30	July	2015	to	his	
resignation	on	22 September	2015.	
Simon Sturge – Non‑Executive Director
Simon	Sturge	served	as	a	Non‑Executive	Director	during	the	year,	resigning	from	his	role	on	18	January	2016.
Dr Michael Khan
Executive Director
With	a	doctorate	in	Developmental	Neurobiology	from	University	College	London,	
Mike has	over	30	years’	clinical	experience	in	the	NHS,	including	17	as	a	consultant	in	
General	Medicine	and	Endocrinology.	He	is	director	of	the	largest	screening	service	for	
hereditary	disorders	of	lipid	metabolism	in	England	and	was	Head	of	Molecular	Medicine	
and	Associate	Professor	of	Medicine	at	the	University	of	Warwick.	Michael	is	also	an	
adviser	to	the	European	Commission	and	the	National	Institute	of	Clinical	Excellence	
(NICE)	in	the	UK.
Dr Stephen Parker
Non‑Executive Chairman
On	30	June	2015,	Stephen	replaced	Alastair	Riddell	as	Non‑Executive	Chairman.	
Stephen	has	extensive	board	level	expertise,	and	is	currently	a	Director	of	sp2	
Consulting	Limited.	Previously	a	partner	at	Celtic	Pharma,	he	was	also	Chief	Financial	
Officer	of	Oxford	GlycoSciences.	He	brings	sector	corporate	finance	experience	having	
been	an	investment	banker	focusing	on	pharma	and	biotechnology	with	Barings,	
Warburg	and	Apax	Partners.	 www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
14
Corporate governance report
In September 2015, your Company returned to 
having a Non‑Executive Chairman. This underlined 
our full commitment to maintaining high standards of 
corporate governance and transparency about our 
arrangements and intentions for future improvement, 
including restructuring the Board to achieve a majority 
of Non‑Executive Directors.
As a Board we continue to recognise that applying sound 
leadership and governance principles in running the 
Company is essential to provide a sustainable platform for 
growth and maintain the trust of our stakeholders.
Dear	Shareholder,	
Principles of corporate governance
As	a	Board,	we	continue	to	recognise	
that	applying	sound	leadership	and	
governance	principles	is	essential	
to	provide	a	sustainable	platform	for	
growth	and	to	maintain	the	trust	of	our	
stakeholders.	Without	this,	the	Company	
would	be	unable	to	deliver	its	objectives	
and	strategy	for	developing	the	next	
generation	of	RNA	therapeutics.
As	previously	reported,	the	Company	
remains	committed	to	deliver	its	business	
within	the	UK	Corporate	Governance	
Code	(the	UK	Code)	as	a	basis	for	
guiding	its	leadership	and	governance	
structures.	However,	it	is	recognised	
that	some	aspects	of	the	UK	Code	are	
not	relevant	for	AIM	companies	such	as	
Silence	Therapeutics	plc.	As	previously	
stated	we	use	the	Quoted	Companies	
Alliance	Corporate	Governance	Code	
(the	QCA	Code)	against	which	to	
measure	our	progress,	as	this	is	more	
applicable	for	small	and	medium	
sized companies.	
Corporate governance framework
Leadership
Your	Board	provides	challenge,	oversight	
and	advice	to	ensure	that	the	Company	
is	doing	the	right	things	in	the	right	way.	
The	changes	we	have	made	in	2015	
and	those	we	plan	to	make	to	Board	
membership	should	assure	shareholders	
that	the	Company	is	led	by	a	Board	
with	appropriate	experience,	skills,	
perspectives	and	qualifications	to	carry	
out	its	role	on	behalf	of	our	shareholders.
Effectiveness
The	Board	also	needs	to	have	the	right	
information	at	the	right	time,	so	that	it	
can	engage	deeply	on	how	the	business	
is	operating,	how	the	Executive	is	
performing	and	fully	understand	the	risks	
and	major	challenges	the	business	is	
facing.	The	performance	of	your	Board,	
its	Committees	and	each	of	the	Directors	
will	be	scrutinised	each	year	in	the	Board	
Effectiveness	Review.
Risk management and control
Understanding	and	managing	our	risks	
and	continuously	improving	our	controls	
are	central	to	the	delivery	of	our	business	
strategy.	Your	Board’s	Audit	Committee	
plays	a	role	in	ensuring	that	Silence	
Therapeutics	undertakes	well‑measured	
risk‑taking	activity	that	supports	
long‑term	sustainable	growth.	
During	this	reporting	year,	we	prepared	a	
report	on	our	corporate	risks.	The	Board	
assumed	responsibility	for	oversight	
of	enterprise‑wide	risk	and	assuring	
key	areas	of	risk	are	addressed	by	
the Executive.
Remuneration
Your	Board	seeks	to	ensure	that	
remuneration	decisions	are	aligned	
with	and	support	the	achievement	of	
long‑term	value	creation.
The Board
In	September	2015,	your	Company	
returned	to	having	a	Non‑Executive	
Chairman.	This	underlined	our	full	
commitment	to	maintaining	high	
standards	of	corporate	governance	
and	transparency	about	our	
arrangements	and	intentions	for	future	
improvement,	including	restructuring	
the	Board	to	achieve	a	majority	of	
Non‑Executive Directors.
Dr Stephen Parker 
Chairman
29	April	2016 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
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Annual report and financial statements 2015
15
Where	appropriate	the	Board	delegates	responsibilities	to	Board	Committees	to	provide	an	
effective	management	framework.
Operation of the Board and 
its Committees
Composition of the Board
The	Board	consists	of	five	Directors:	
three	Executive	Directors	and	two	
Non‑Executive	Directors	including	the	
Chairman.	The	Board’s	composition	
is	geared	towards	its	current	stage	of	
development	and	priorities.	The	skill	
set	of	the	Board	includes	extensive	
knowledge	of	the	pharmaceutical	and	
biotechnology	industries,	financial	
services	and	corporate	finance,	and	
experienced	researchers	and	clinicians.	
Details	of	each	of	the	Directors’	
experience	and	background	are	given	
in their	biographies	on	page	13.
Board meetings
Below	is	a	table	showing	the	number	
of	different	meetings	which	took	place	
during	2015.	The	Board	will	continue	to	
meet	on	a	regular	basis	in	order	to	review	
progress	and	agree	strategy:
	 Number	of	
Type	of	meeting	 meetings	in	2015
Board	 11
Audit	Committee	 2
Remuneration	Committee	 2
Nomination	Committee	 1
Appointments to the Board 
and re‑election
The	Board	has	delegated	the	tasks	of	
reviewing	Board	composition,	searching	
for	appropriate	candidates	and	making	
recommendations	to	the	Board	on	
candidates	to	be	appointed	as	Directors	
to	the	Nomination	Committee.	Further	
details	on	the	role	of	the	Nomination	
Committee	may	be	found	on	page	18.	
With	regard	to	re‑election	of	Directors,	
the	Company	is	governed	by	its	Articles	
of	Association	(Articles).	Under	the	
Articles,	the	Board	has	the	power	to	
appoint	a	Director	during	the	year	
but	any	person	so	appointed	must	
stand	for	election	at	the	next	Annual	
General	Meeting.	Any	Director	who	
has	been	a	Director	at	each	preceding	
two	Annual	General	Meetings	and	has	
not	been	re‑appointed	since,	must	
retire	from	office	at	the	next	Annual	
General	Meeting.	The	Director	is	then	
eligible	to	stand	for	re‑appointment	
by	the	shareholders.	Alistair	Gray	will	
stand	for	election	at	the	2016	Annual	
General	Meeting	having	been	appointed	
a	Director	since	the	last	Annual	
General Meeting.
Development, information and support
The	Directors	are	encouraged	to	attend	
training	and	continuing	professional	
development	courses	as	required.	
Updates	are	given	to	the	Board	on	
developments	in	governance	and	
regulations	as	appropriate.	For	example,	
a	briefing	on	governance	standards	
and	key	policies	appropriate	for	an	AIM	
company	was	given	to	the	Board	during	
the	year.	The	Chief	Financial	Officer,	
Timothy	Freeborn,	is	also	the	Company	
Secretary	and	supports	the	Chairman	
in	ensuring	that	the	Board	receives	the	
information	and	support	they	need	in	
order	to	carry	out	their	roles.	
Conflicts of interest
Under	the	Articles	of	Association	the	
Directors	may	authorise	any	actual	or	
potential	conflict	of	interest	a	Director	
may	have	and	may	impose	any	
conditions	on	the	Director	that	are	felt	
to	be	appropriate.	Directors	are	not	
able	to	vote	in	respect	of	any	contract,	
arrangement	or	transaction	in	which	they	
have	a	material	interest	and	they	are	not	
counted	in	the	quorum.	A	process	has	
been	developed	to	identify	any	of	the	
Directors’	potential	or	actual	conflicts	
of	interest.	This	includes	declaring	any	
new	conflicts	before	the	start	of	each	
Board meeting.
Performance evaluation
A	formal	performance	evaluation	has	
been	carried	out	during	the	year.	This	
was	the	basis	for	setting	the	bonus	
of	the	Chief	Executive	and	the	Chief	
Financial Officer.	 www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
16
The Board Committees
Membership	of	all	three	Board	Committees	is	composed	of	the	Chairman	and	the	other	Non‑Executive	Director.	All	of	the	Board	
Committees	are	authorised	to	obtain,	at	the	Company’s	expense,	professional	advice	on	any	matter	within	their	terms	of	reference	
and	to	have	access	to	sufficient	resources	in	order	to	carry	out	their	duties.
The role of the Board
The	key	tasks	of	the	Board	are:
•	 setting	the	Company’s	values	and standards;
•	 approval	of	long‑term	objectives	and strategy;
•	 approval	of	revenue,	expense	and	capital	budgets	and	plans;
•	 oversight	of	operations	ensuring	adequate	systems	of	internal	controls	and	risk	management	are	in	place,	ensuring	
maintenance	of	accounting	and	other	records	and	compliance	with	statutory	and	regulatory obligations;
•	 review	of	performance	in	light	of	strategy	and	budgets	ensuring	any	necessary	corrective	actions	are taken;
•	 approval	of	the	annual	report	and	financial	statements,	material	contracts	and	major	projects;
•	 changes	to	structure,	size	and	composition	of	the	Board;
•	 determining	remuneration	policy	for	the	Directors	and	approval	of	the	remuneration	of	the	Non‑Executive	Directors;	and
•	 approval	of	communications	with	shareholders	and	the	market.
Audit Committee Remuneration Committee Nomination Committee
BOARD
Alistair	Gray	(Chairman)
Stephen	Parker	
Stephen	Parker	(Chairman)
Alistair	Gray
Stephen	Parker	(Chairman)
Alistair	Gray
Audit Committee report
Members of the Audit Committee
The	Committee	consists	entirely	of	independent	Non‑Executive	Directors.	The	Chairman,	Alistair	Gray,	has	extensive	
financial experience.
Alistair	Gray	(Chairman)
Stephen	Parker	
Duties
The	main	duties	of	the	Audit	Committee	are	set	out	in	its	Terms	of	Reference	and	include:
•	 monitoring	the	integrity	of	the	financial	statements	of	the	Company,	including	its	annual	and	half	year	reports;
•	 reviewing	and	challenging	where	necessary	any	changes	to,	and	consistency	of,	accounting	policies,	whether	the	Company	has	
followed	appropriate	accounting	standards	and	made	appropriate	estimates	and	judgements,	taking	into	account	the	views	of	
the	external	auditor,	the	going	concern	assumption	and	all	material	information	presented	with	the	financial	statements;
•	 keeping	under	review	the	effectiveness	of	the	Company’s	internal	control	systems	(including	financial,	operational	and	
compliance	controls	and	risk	management)	and	to	review	and	approve	the	statements	to	be	included	in	the	annual	report	and	
financial	statements	concerning	internal	controls	and	risk	management;
•	 regularly	assessing	the	need	for	an	internal	audit	function;
•	 considering	and	making	recommendations	to	the	Board,	to	be	put	to	shareholders	for	approval	at	the	Annual	General	Meeting,	
in	relation	to	the	appointment,	re‑appointment	and	removal	of	the	Company’s	external	auditor;
•	 ensuring	that	at	least	every	ten	years	the	audit	services	contract	is	put	out	to	tender,	in	respect	of	the	tender	to	oversee	the	
selection	process;
•	 overseeing	the	relationship	with	the	external	auditor	including	approval	of	their	remuneration,	approval	of	their	terms	of	
engagement,	annual	assessment	of	their	independence	and	objectivity	taking	into	account	relevant	professional	and	regulatory	
requirements	and	the	relationship	with	the	auditor	as	a	whole,	including	the	provision	of	any	non‑audit	services;
•	 meeting	regularly	with	the	external	auditor	and	at	least	once	a	year,	without	any	Executive	Director	or	other	member	of	
management	present	to	discuss	any	issues	arising	from	the	audit;
Corporate governance report continued www.silence-therapeutics.com
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•	 reviewing	and	approving	the	annual	Audit	Plan	and	review	the	findings	of	the	audit;	and
•	 reviewing	the	Company’s	arrangements	for	its	employees	and	contractors	to	raise	concerns	in	confidence	about	possible	
improprieties	in	financial	reporting	or	other	matters,	the	Company’s	procedures	for	detecting	fraud	and	the	Company’s	
anti‑bribery	procedures.
Activities in 2015
In	2015	the	Audit	Committee	reviewed	the	preliminary	announcement,	the	2014	annual	report	and	the	interim	announcement.	
The Committee	also	met	with	the	external	auditors,	reviewed	the	audit	plan	and	results	of	the	external	audit.	A	risk	assessment	
was	performed	by	the	Committee.
Role of the external auditor
The	Audit	Committee	monitors	the	relationship	with	the	external	auditor,	PricewaterhouseCoopers	LLP,	who	was	appointed	
in	2014,	to	ensure	that	auditor	independence	and	objectivity	is	maintained.	As	part	of	its	review	the	Committee	monitors	the	
provision	of	non‑audit	services	by	the	external	auditor.	The	breakdown	of	fees	between	audit	and	non‑audit	services	is	provided	
in	note	5	to	the	financial	statements.	The	Audit	Committee	also	assesses	the	auditor’s	performance.	Having	reviewed	the	auditor’s	
independence	and	performance	the	Audit	Committee	is	recommending	that	PricewaterhouseCoopers	LLP	be	re‑appointed	as	the	
Company’s	auditor	at	the	next	Annual	General	Meeting.
Internal audit
At	present	the	Company	does	not	have	an	internal	audit	function.	Given	the	current	size	of	the	Company	and	control	systems	
that	are	in	place	the	Committee	believes	that	there	is	sufficient	management	oversight	to	highlight	any	areas	of	weakness	in	the	
financial	reporting	systems.	The	Committee	will	review	the	need	for	an	internal	audit	function	at	least	annually.
Audit process
The	auditor	prepares	an	Audit	Plan	for	the	audit	of	the	full	year	financial	statements.	The	Audit	Plan	sets	out	the	scope	of	the	
audit,	areas	to	be	targeted	and	audit	timetable.	Following	the	audit,	the	auditor	presented	its	findings	to	the	Audit	Committee	
for discussion.	
Remuneration Committee report
Members of the Remuneration Committee
The	Committee	consists	entirely	of	independent	Non‑Executive	Directors	as	follows:	
Stephen	Parker	(Chairman)
Alistair	Gray
Duties
The	main	duties	of	the	Remuneration	Committee	are	set	out	in	its	Terms	of	Reference	and	include:
•	 setting	the	remuneration	policy	for	the	Executive	Directors	and	the	Company’s	Chairman	taking	into	account	relevant	legal	
and	regulatory	requirements,	the	provisions	of	the	UK	Corporate	Governance	Code	and	other	guidance	such	as	issued	by	the	
Association	of	British	Insurers	and	the	National	Association	of	Pension	Funds;
•	 within	the	agreed	policy	determining	the	total	individual	remuneration	package	of	each	Executive	Director	and	Chairman;
•	 recommending	and	monitoring	the	level	and	structure	of	remuneration	for	senior	management;
•	 to	help	it	fulfil	its	remit	to	appoint	remuneration	consultants	and	commission	any	reports	or	surveys;
•	 approving	the	design	of	and	determining	the	targets	for	any	schemes	of	performance‑related	remuneration;
•	 considering	whether	the	Directors	should	be	eligible	for	annual	bonuses	and,	if	so,	to	consider	the	upper	limits	for	
such bonuses;
•	 considering	whether	the	Directors	should	be	eligible	for	benefits	under	long‑term	incentive	schemes;
•	 agreeing	the	policy	for	authorising	claims	for	expenses	from	the	Executive	Directors	and	Chairman;	and
•	 ensuring	that	contractual	terms	on	termination,	and	any	payments	made,	are	fair	to	the	individual	and	the	Company	and	that	
failure	is	not	rewarded	and	that	the	duty	to	mitigate	loss	is	fully	recognised.
Activities in 2015
The	Committee	set	the	remuneration	policy	during	the	year	and,	more	specifically,	the	targets	used	in	assessing	the	bonus	for	the	
Chief	Executive	and	other	Executive	Directors. www.silence-therapeutics.com
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Annual report and financial statements 2015
18
Corporate governance report continued
Nomination Committee report
Members of the Nomination Committee
The	Committee	consists	entirely	of	independent	Non‑Executive	Directors:
Stephen	Parker	(Chairman)
Alistair	Gray
Duties
The	main	duties	of	the	Nomination	Committee	are	set	out	in	its	Terms	of	Reference	and	include:
•	 regularly	reviewing	the	structure,	size	and	composition	(including	the	skills,	knowledge,	experience	and	diversity)	required	of	the	
Board	compared	to	its	current	position	and	make	recommendations	to	the	Board	with	regard	to	any	changes;
•	 giving	full	consideration	to	succession	planning	for	Directors	and	other	senior	Executives	in	the	course	of	its	work,	taking	into	
account	the	challenges	and	opportunities	facing	the	Company,	and	what	skills	and	expertise	are	therefore	needed	on	the	Board	in	
the	future;
•	 being	responsible	for	identifying	and	nominating	for	the	approval	of	the	Board,	candidates	to	fill	Board	vacancies	as	and	when	
they	arise;
•	 formulating	plans	for	succession	for	both	Executive	and	Non‑Executive	Directors	and	in	particular	for	the	key	roles	of	Chairman	
and	Chief	Executive;
•	 assessing	the	re‑appointment	of	any	Non‑Executive	Director	at	the	conclusion	of	their	specified	term	of	office	having	given	due	
regard	to	their	performance	and	ability	to	continue	to	contribute	to	the	Board	in	the	light	of	the	knowledge,	skills	and	experience	
required;	and
•	 assessing	the	re‑election	by	shareholders	of	any	Director	having	due	regard	to	their	performance	and	ability	to	continue	to	contribute	
to	the	Board	in	the	light	of	the	knowledge,	skills	and	experience	required	and	the	need	for	progressive	refreshing	of	the	Board.
During	the	year,	the	Nomination	Committee	discussed	and	approved	the	appointment	of	Dr	Lars	Karlsson	as	Head	of	Research	
and	Development	from	5	January	2015.	Mr	Alistair	Gray’s	appointment	to	the	Board	was	approved	by	the	full	Board	in	
November 2015.
Accountability 
Internal controls and risk management
The	Company	has	in	place	a	system	of	internal	financial	controls	commensurate	with	its	current	size	and	activities,	which	is	
designed	to	ensure	that	the	possibility	of	misstatement	or	loss	is	kept	to	a	minimum.	These	procedures	include	the	preparation	
of	management	accounts,	forecast	variance	analysis	and	other	ad	hoc	reports.	A	Financial	Procedures	Manual	sets	out	minimum	
reporting	standards.	Risks	throughout	the	Group	are	considered	and	reviewed	on	a	regular	basis.	Risks	are	identified	and	
mitigating	actions	put	into	place	as	appropriate.	Principal	risks	identified	are	set	out	in	the	strategic	report	on	page	11.
Internal	control	and	risk	management	procedures	can	only	provide	reasonable	and	not	absolute	assurance	against	material	
misstatement.
Financial and business reporting
The	Board	seeks	to	present	a	balanced	and	understandable	assessment	of	the	Group’s	position	and	prospects	in	all	half	year,	final	
and	price‑sensitive	reports	and	other	information	required	to	be	presented	by	statute.	The	Board	receives	a	number	of	reports	to	
enable	it	to	monitor	and	clearly	understand	the	Group’s	financial	position.	A	new	Disclosure	Policy	was	put	in	place	during	the	year	
to	enhance	the	process	for	ensuring	that	price‑sensitive	information	is	identified	effectively	and	all	communications	with	the	market	
are	released	in	accordance	with	expected	time	scales.
Relations with shareholders
The	Board	is	committed	to	maintaining	ongoing	communication	with	its	shareholders.	The	Directors	are	keen	to	build	a	mutual	
understanding	of	objectives	with	its	institutional	shareholders	and	a	regular	dialogue	with	institutional	investors	has	been	
maintained	throughout	the	year.	The	Directors	also	encourage	communications	with	private	shareholders	and	encourage	their	
participation	in	the	Company’s	Annual	General	Meeting.	
The	Company	uses	its	corporate	website	(www.silence‑therapeutics.com)	to	communicate	with	institutional	shareholders	and	
private	investors,	and	the	website	also	contains	the	latest	announcements,	press	releases,	published	financial	information,	current	
projects	and	other	information	about	the	Company.	The	annual	report	and	financial	statements	is	a	key	communication	document	
and	is	also	available	on	the	Company’s	website.	
This	year’s	Annual	General	Meeting	of	the	Company	will	be	held	on	17	June	2016.	The	Notice	of	Annual	General	Meeting	is	
included	with	the	annual	report	and	financial	statements	and	is	available	on	the	Company’s	website.	Separate	resolutions	are	
provided	on	each	issue	so	that	they	can	be	given	proper	consideration.	Proxy	votes	are	counted	and	the	level	of	proxies	lodged	
on each	resolution	reported	after	it	has	been	dealt	with	on	a	show	of	hands.	 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
19
Dear	Shareholder,
One	of	the	main	purposes	of	the	report	is	to	support	the	Board’s	goal	of	working	towards	best	practice	corporate	governance	
standards.	We	are	also	keen	to	promote	transparency	about	how	our	Directors	are	rewarded.	
The	Remuneration	Committee	plays	an	increasingly	important	role	in	ensuring	that	remuneration	policy	underpins	strategy	and	the	
long‑term	visionary	goals	of	the	Company.
The Remuneration Committee
The	Board	has	delegated	certain	responsibilities	for	executive	remuneration	to	the	Remuneration	Committee.	Details	of	the	
Remuneration	Committee,	its	remit	and	activities	are	set	out	in	the	corporate	governance	report	on	pages	14	to	18.
Remuneration policy
The	objective	of	the	Company’s	remuneration	policy	is	to	attract,	retain	and	motivate	executive	management	of	the	quality	
required	to	run	the	Company	successfully	without	paying	more	than	is	necessary.
Service agreements and termination payments
Details	of	the	Executive	Directors’	service	agreements	are	set	out	below.
	 	 	 	 	 	 	 Notice	period	 Notice	period		
Director	 	 	 	 	 	 	Initial	contract	 by	Company	 by	Director
Ali	Mortazavi,	Chief	Executive	 	 	 	 	 31.7.12	 6	months	 6	months
Timothy	Freeborn,	Chief	Financial	Officer	 	 	 	 	 27.7.12	 12	months	 6	months
Michael	Khan,	Executive	Director	 	 	 	 	 1.10.12	 3	months	 6	months
Lars	Karlsson,	Head	of	Research	and	Development	 	 	 	 8.12.14	 3	months	 3	months
There	are	no	specific	provisions	under	which	Executive	Directors	are	entitled	to	receive	compensation	upon	early	termination,	
other	than	in	accordance	with	the	notice	period.	On	termination	of	an	Executive	Director’s	service	contract,	the	Remuneration	
Committee	will	take	into	account	the	departing	Director’s	duty	to	mitigate	his/her	loss	when	determining	the	amount	of	any	
compensation.
Non-Executive Directors
The	remuneration	payable	to	Non‑Executive	Directors	is	decided	on	by	the	Chairman	and	Executive	Directors.
Fees (£)
	 		 		 		 2015	 2014
Chairman	 	 	 	 	 	 	 81,250	 75,000
Non‑Executive	Director	fee	(including	Chairmanship	of	Board	Committee)	 	 	 40,000	 35,000
Terms of appointment
	 	 	 	 	 	 	 	 Expiry	of		
Non‑Executive	Director	 	 	 	 	 	 Year	appointed	 Start	date	 current	term
Simon	Sturge	 	 	 	 	 	 2013	 21.08.13	 Immediate
Stephen	Parker	 	 	 	 	 	 2013	 18.11.13	 3	months
Alistair	Gray	 	 	 	 	 	 2015	 12.11.15	 Immediate
The	appointments	for	each	Non‑Executive	Director	may	be	terminated	by	either	party	giving	notice	as	shown	above.	There	are	
no	arrangements	under	which	any	Non‑Executive	Director	is	entitled	to	receive	compensation	upon	the	early	termination	of	his	
appointment.
Directors’ remuneration report www.silence-therapeutics.com
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Annual report and financial statements 2015
20
Annual remuneration report
Please	see	note	6	of	the	financial	statements	for	Directors’	remuneration.	During	the	year	information	in	respect	of	share	awards	
and	Directors’	shareholdings	is	set	out	below.
Share option awards table
	 At				 At  Exercise	
	 1	January	 	 		 	 31 December	 price	 Earliest	date	 Latest	date		
Director	 2015	 Exercised	 Awarded	 Lapsed	 2015	 pence	 of	exercise	 of	exercise
Ali Mortazavi	 	 	 	 	 	 	
–		 Unapproved	Scheme	 1,728,078	 —	 —	 —	 1,728,078	 25.0	 01.08.14	 31.07.24
Timothy Freeborn	 	 	 	 	 	 	
–		 Unapproved	Scheme	 190,000	 —	 —	 —	 190,000	 25.0	 27.07.14	 27.07.24
–		 Unapproved	Scheme	 80,000	 —	 —	 —	 80,000	 125.0	 26.06.16	 26.06.26
–		 Unapproved	Scheme	 40,000	 —	 —	 —	 40,000	 282.0	 20.11.16	 20.11.26
Michael Khan	 	 	 	 	 	 	
–		 Unapproved	Scheme	 80,000	 —	 —	 —	 80,000	 125.0	 31.12.15	 31.12.24
–		 Unapproved	Scheme	 80,000	 —	 —	 —	 80,000	 125.0	 26.06.16	 26.06.26
Lars Karlsson	 	 	 	 	 	 	
–		 Unapproved	Scheme	 —	 —	 153,000	 —	 153,000	 205.0	 08.01.18	 08.01.30
Total	 2,198,078	 —	 153,000	 —	 2,351,078		
Directors’ interests in the share capital of the Company as at the date of this report
	 	 	 	 	 	 	 	 Percentage		
	 	 	 	 	 	 	 Number	of	 of	issued		
Director	 	 	 	 	 	 	 ordinary	shares	 share	capital
Ali	Mortazavi	 	 	 	 	 	 	 1,937,399	 2.78
Timothy	Freeborn	 	 	 	 	 	 	 14,000	 0.02
Dr	Michael	Khan	 	 	 	 	 	 	 1,976	 0.003
Dr	Stephen	Parker	 	 	 	 	 	 	 6,478	 0.01
Lars	Karlsson	 	 	 	 	 	 	 —	 —
Alastair	Riddell	 	 	 	 	 	 	 —	 —
Simon	Sturge	 	 	 	 	 	 	 —	 —
Alistair	Gray	 	 	 	 	 	 	 —	 —
The	average	share	price	for	the	year	was	245.7p	(2014:	244.3p).
This	report	was	approved	by	the	Board	of	Directors	and	signed	on	its	behalf	by:
Dr Stephen Parker
Chairman	of	the	Remuneration	Committee
29	April	2016
Directors’ remuneration report continued www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
21
The	Directors	present	their	report	and	the	audited	financial	statements	of	the	Group	for	the	year	ended	31	December	2015.
Principal activities
The	Group	is	focused	on	the	development	of	RNA	therapeutics	which	incorporates	its	structural	chemistry	and	delivery	
technologies.	
Review of the business and future developments
The	strategic	report	describes	research	and	development	activity	during	the	year	as	well	as	outlining	future	planned	developments.	
Details	of	the	financial	performance,	including	comments	on	the	cash	position	and	research	and	development	expenditure,	are	
given	in	the	financial	review.	Principle	risks	and	KPIs	are	given	in	the	strategic	report.
Health, safety and environment
The	Directors	are	committed	to	ensuring	the	highest	standards	of	health	and	safety,	both	for	their	employees	and	for	the	
communities	within	which	the	Group	operates.	The	Directors	are	also	committed	to	minimising	the	impact	of	the	Group’s	
operations	on	the	environment.
Employees
The	Directors	are	committed	to	continuing	involvement	and	communication	with	employees	on	matters	affecting	both	employees	
and	the	Company.	Management	conducts	regular	meetings	with	all	employees	on	site.
Political contributions
Neither	the	Company	nor	any	of	its	subsidiaries	made	any	political	donations	or	incurred	any	political	expenditure	during	the	year	
(2014:	nil).
Research and development
In	2015,	the	Group	spent	£7.1m	on	research	and	development	(2014:	£8.9m).	See	the	Chief	Executive’s	review	on	page	6	for	
more information.
Disclosure of information to the auditor
Each	of	the	persons	who	is	a	Director	at	the	date	of	approval	of	this	report	confirms	that:	
•	 so	far	as	the	Director	is	aware,	there	is	no	relevant	audit	information	of	which	the	Company’s	auditor	is	unaware;	and
•	 the	Director	has	taken	all	the	steps	that	he	ought	to	have	taken	as	a	Director	in	order	to	make	himself	aware	of	any	relevant	
audit	information	and	to	establish	that	the	Company’s	auditor	is	aware	of	that	information.	
Subsequent events
A	description	of	subsequent	events	is	set	out	in	note	26	to	the	financial	statements.
Financial risk management
A	description	of	financial	risk	management	is	set	out	in	note	24	to	the	financial	statements.
Results and dividends
The	Group	recorded	a	loss	for	the	year	before	taxation	of	£9.4m	(2014:	£12.0m).	Loss	after	tax	for	the	year	was	£6.6m	
(2014: £11.1m).	Further	details	are	given	in	the	financial	review.	The	Group	is	not	yet	in	a	position	to	pay	a	dividend	and	the	loss	for	
both	periods	has	been	added	to	accumulated	losses.	
Directors’ report www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
22
Directors’ report continued
Directors
The	Directors	who	served	at	any	time	during	the	year	or	since	the	year	end	were:
	 	 	 	 Job	title	 	 Appointed	 	 Resigned
Ali	Mortazavi	 	 	 Chief	Executive
Timothy	Freeborn	 	 	 Chief	Financial	Officer	 	
Dr	Michael	Khan	 	 	 Executive	Director	 	
Lars	Karlsson	 	 Head	of	Research	and	Development	 5	January	2015	 	 5	April	2016
Alastair	Riddell		 	 	 Chairman	 	 22	September	2015
Simon	Sturge	 	 	 Non‑Executive	 	 18	January	2016
Dr	Stephen	Parker		 	 	 Non‑Executive/Chairman	 22	September	2015	 	
Alistair	Gray	 	 	 Non‑Executive	 12	November	2015	
Stuart	Collinson	 	 	 Non‑Executive	 18	January	2016	 	 	5	April	2016
Alastair	Riddell	and	Simon	Sturge	exchanged	roles	on	5	January	2015,	with	Alastair	becoming	Non‑Executive	Chairman	of	the	
Board	and	Chair	of	the	Nomination	Committee.	As	mentioned	in	the	Chairman’s	statement,	Alistair	became	Interim	Executive	
Chairman	in	July	2015.	Simon	Sturge	remained	a	Non‑Executive	Director	and	Chair	of	the	Remuneration	Committee	until	his	
resignation	from	the	Board	on	18	January	2016.	On	the	same	date,	Lars	Karlsson	joined	the	Board	as	Head	of	Research	and	
Development.	The	interests	of	the	Directors	in	the	share	options	of	the	Company	are	set	out	in	the	Directors’	remuneration	report.
On	22	September	2015	Alastair	Riddell	resigned	from	the	Board.	On	the	same	date,	Stephen	Parker	took	on	the	role	of	
Non‑Executive	Chairman.	
On	12	November	2015	Alistair	Gray	was	appointed	as	a	Non‑Executive	Director	and	became	the	Chairman	of	the	
Audit Committee.
On	18	January	2016	Stuart	Collinson	was	appointed	as	a	Non‑Executive	Director	replacing	Simon	Sturge.
On	5	April	2016	Stuart	Collinson	resigned	from	the	Non‑Executive	Board.	On	the	same	date,	Lars	Karlsson	resigned	from	the	Board.	
Substantial interests
At	31	December	2015	the	Company	had	been	informed	of	the	following	substantial	interests	of	over	2%	in	the	issued	share	capital	
of	the	Company:
	 	 	 	 	 	 	 Number	 Percentage	of	
	 	 	 	 	 	 	 issued	 share	capital
Richard	Griffiths	 	 	 	 	 	 	 14,409,248	 20.64%
Robert	Keith	 	 	 	 	 	 	 12,596,974	 18.05%
Invesco	Limited		 	 	 	 	 	 	 8,333,333	 11.94%
Henderson	Global	Investors		 	 	 	 	 	 4,938,561	 7.08%
Aviva		 	 	 	 	 	 	 4,458,976	 6.39%
Woodford	Investment	Management	LLP	 	 	 	 	 	 4,166,666	 5.97%
Sarossa	plc	 	 	 	 	 	 	 2,189,467	 3.14%
Ali	Mortazavi	 	 	 	 	 	 	 1,777,399	 2.55%
Going concern
The	financial	statements	have	been	prepared	on	a	going	concern	basis	that	assumes	that	the	Group	will	continue	in	operational	
existence	for	the	foreseeable	future.
The	Group	had	a	net	cash	inflow	for	2015	of	£35.2m	(2014:	£1.2m),	principally	£4.0m	outflow	from	operating	and	investing	
activities	offset	by	£39.2m	from	share	issues	in	the	year,	and	at	31	December	2015	had	cash	and	cash	equivalent	balances	of	
£51.9m	and	nil	on	short‑term	deposit	(2014:	£16.9m	and	£5.0m	on	deposit).	Based	on	current	forecasts,	the	cash	on	hand	at	the	
date	of	this	report	will	support	operations	for	several	years.	
This	report	was	approved	by	the	Board	of	Directors	and	signed	on	its	behalf	by:
Dr Stephen Parker
Chairman
29	April	2016 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
23
The	Directors	are	responsible	for	preparing	the	annual	report,	strategic	report,	the	Directors’	report	and	the	financial	statements	in	
accordance	with	applicable	laws	and	regulations.	
Company	law	requires	the	Directors	to	prepare	financial	statements	for	each	financial	year.	As	required	by	the	AIM	Rules	of	the	
London	Stock	Exchange	they	are	required	to	prepare	the	Group	financial	statements	in	accordance	with	International	Financial	
Reporting	Standards	(IFRS)	as	adopted	by	the	EU	(EU	IFRS)	and	applicable	law	and	have	elected	to	prepare	the	parent	Company	
financial	statements	on	the	same	basis.
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	Group	and	parent	Company	and	of	their	profit	or	loss	for	that	period.
In	preparing	each	of	the	Group	and	parent	Company	financial	statements,	the	Directors	are	required	to:
•	 select	suitable	accounting	policies	and	then	apply	them	consistently;
•	 make	judgements	and	estimates	that	are	reasonable	and	prudent;
•	 state	whether	they	have	been	prepared	in	accordance	with	IFRS	as	adopted	by	the	EU;	and
•	 prepare	the	financial	statements	on	the	going	concern	basis	unless	it	is	inappropriate	to	presume	that	the	Group	and	the	parent	
Company	will	continue	in	business.
The	Directors	are	responsible	for	keeping	adequate	accounting	records	that	are	sufficient	to	show	and	explain	the	parent	
Company’s	and	Group’s	transactions	and	disclose	with	reasonable	accuracy	at	any	time	the	financial	position	of	the	parent	
Company	and	Group	and	enable	them	to	ensure	that	its	financial	statements	and	Directors’	remuneration	report	comply	with	the	
Companies	Act	2006.	They	have	general	responsibility	for	taking	such	steps	as	are	reasonably	open	to	them	to	safeguard	the	
assets	of	the	Group	and	to	prevent	and	detect	fraud	and	other	irregularities.
The	Directors	are	responsible	for	the	maintenance	and	integrity	of	the	corporate	and	financial	information	included	on	the	
Company’s	website.	Legislation	in	the	UK	governing	the	preparation	and	dissemination	of	financial	statements	may	differ	from	
legislation	in	other	jurisdictions.
On	behalf	of	the	Board
Timothy Freeborn
Chief	Financial	Officer	and	Company	Secretary
29	April	2016
Statement of Directors’ responsibilities www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
24
Independent auditor’s report
to the members of Silence Therapeutics plc 
Report on the financial statements
Our opinion
In our opinion:
•	 Silence	Therapeutics	plc’s	group	financial	statements	and	company	financial	statements	(the	“financial	statements”)	give	a	true	
and	fair	view	of	the	state	of	the	group’s	and	of	the	company’s	affairs	as	at	31	December	2015	and	of	the	group’s	loss	and	the	
group’s	and	the	company’s	cash	flows	for	the	year	then	ended;
•	 the	group	financial	statements	have	been	properly	prepared	in	accordance	with	International	Financial	Reporting	Standards	
(“IFRSs”)	as	adopted	by	the	European	Union;
•	 the	company	financial	statements	have	been	properly	prepared	in	accordance	with	IFRSs	as	adopted	by	the	European	Union	
and	as	applied	in	accordance	with	the	provisions	of	the	Companies	Act	2006;	and
•	 the	financial	statements	have	been	prepared	in	accordance	with	the	requirements	of	the	Companies	Act	2006.
What we have audited
The	financial	statements,	included	within	the	Annual	Report,	comprise:
•	 the	consolidated	and	company	balance	sheets	as	at	31	December	2015;
•	 the	consolidated	income	statement	and	consolidated	statement	of	comprehensive	income	for	the	year	then	ended;
•	 the	cash	flow	statements	for	the	year	then	ended;
•	 the	consolidated	and	company	statement	of	changes	in	equity	for	the	year	then	ended;	and
•	 the	notes	to	the	financial	statements,	which	include	a	summary	of	significant	accounting	policies	and	other	explanatory	
information.
The	financial	reporting	framework	that	has	been	applied	in	the	preparation	of	the	financial	statements	is	IFRSs	as	adopted	by	
the	European	Union,	and	applicable	law	and,	as	regards	the	company	financial	statements,	as	applied	in	accordance	with	the	
provisions	of	the	Companies	Act	2006.
In	applying	the	financial	reporting	framework,	the	directors	have	made	a	number	of	subjective	judgements,	for	example	in	respect	
of	significant	accounting	estimates.	In	making	such	estimates,	they	have	made	assumptions	and	considered	future	events.
Opinion on other matter prescribed by the Companies Act 2006
In	our	opinion,	the	information	given	in	the	Strategic	Report	and	the	Directors’	Report	for	the	financial	year	for	which	the	financial	
statements	are	prepared	is	consistent	with	the	financial	statements.
Other matters on which we are required to report by exception
Adequacy of accounting records and information and explanations received
Under	the	Companies	Act	2006	we	are	required	to	report	to	you	if,	in	our	opinion:
•	 we	have	not	received	all	the	information	and	explanations	we	require	for	our	audit;	or
•	 adequate	accounting	records	have	not	been	kept	by	the	company,	or	returns	adequate	for	our	audit	have	not	been	received	
from	branches	not	visited	by	us;	or
•	 the	company	financial	statements	are	not	in	agreement	with	the	accounting	records	and	returns.
We	have	no	exceptions	to	report	arising	from	this	responsibility.
Directors’ remuneration
Under	the	Companies	Act	2006	we	are	required	to	report	to	you	if,	in	our	opinion,	certain	disclosures	of	directors’	remuneration	
specified	by	law	are	not	made.	We	have	no	exceptions	to	report	arising	from	this	responsibility.	 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
25
Responsibilities for the financial statements and the audit
Our responsibilities and those of the directors
As	explained	more	fully	in	the	statement	of	directors’	responsibilities	set	out	on	page	23,	the	directors	are	responsible	for	the	
preparation	of	the	financial	statements	and	for	being	satisfied	that	they	give	a	true	and	fair	view.
Our	responsibility	is	to	audit	and	express	an	opinion	on	the	financial	statements	in	accordance	with	applicable	law	and	
International	Standards	on	Auditing	(UK	and	Ireland)	(“ISAs	(UK	&	Ireland)”).	Those	standards	require	us	to	comply	with	the	
Auditing	Practices	Board’s	Ethical	Standards	for	Auditors.
This	report,	including	the	opinions,	has	been	prepared	for	and	only	for	the	company’s	members	as	a	body	in	accordance	with	
Chapter	3	of	Part	16	of	the	Companies	Act	2006	and	for	no	other	purpose.	We	do	not,	in	giving	these	opinions,	accept	or	assume	
responsibility	for	any	other	purpose	or	to	any	other	person	to	whom	this	report	is	shown	or	into	whose	hands	it	may	come	save	
where	expressly	agreed	by	our	prior	consent	in	writing.
What an audit of financial statements involves
We	conducted	our	audit	in	accordance	with	ISAs	(UK	&	Ireland).	An	audit	involves	obtaining	evidence	about	the	amounts	and	
disclosures	in	the	financial	statements	sufficient	to	give	reasonable	assurance	that	the	financial	statements	are	free	from	material	
misstatement,	whether	caused	by	fraud	or	error.	This	includes	an	assessment	of:	
•	 whether	the	accounting	policies	are	appropriate	to	the	group’s	and	the	company’s	circumstances	and	have	been	consistently	
applied	and	adequately	disclosed;	
•	 the	reasonableness	of	significant	accounting	estimates	made	by	the	directors;	and
•	 the	overall	presentation	of	the	financial	statements.	
We	primarily	focus	our	work	in	these	areas	by	assessing	the	directors’	judgements	against	available	evidence,	forming	our	own	
judgements,	and	evaluating	the	disclosures	in	the	financial	statements.
We	test	and	examine	information,	using	sampling	and	other	auditing	techniques,	to	the	extent	we	consider	necessary	to	provide	a	
reasonable	basis	for	us	to	draw	conclusions.	We	obtain	audit	evidence	through	testing	the	effectiveness	of	controls,	substantive	
procedures	or	a	combination	of	both.	
In	addition,	we	read	all	the	financial	and	non‑financial	information	in	the	Annual	Report	and	financial	statements	to	identify	material	
inconsistencies	with	the	audited	financial	statements	and	to	identify	any	information	that	is	apparently	materially	incorrect	based	
on,	or	materially	inconsistent	with,	the	knowledge	acquired	by	us	in	the	course	of	performing	the	audit.	If	we	become	aware	of	any	
apparent	material	misstatements	or	inconsistencies	we	consider	the	implications	for	our	report.
Stuart Newman 
Senior	Statutory	Auditor
for	and	on	behalf	of	PricewaterhouseCoopers	LLP	
Chartered	Accountants	and	Statutory	Auditors	
Cambridge
29	April	2016 www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
26
	 		 		 	 2015	 2014	
	 	 	 	 	 	 Note	 £000s	 £000s
Revenue	 					 3	 — 	 15
Research	and	development	costs	 	 	 	 	 	 (7,114) 	 (8,884)
Administrative	expenses	 	 	 	 	 	 	 (2,655) 	 (3,258)
Operating	loss	 	 	 	 	 	 5	 (9,769) 	 (12,127)
Finance	and	other	income	 	 	 	 	 	 7		 340 	 147
Loss for the year before taxation	 					 (9,429) 	 (11,980)
Taxation		 	 	 	 	 	 8	 2,784 	 892
Loss for the year after taxation	 					 (6,645) 	 (11,088)
Loss per ordinary equity share (basic and diluted) 			 9	 (10.4p) 	 (22.0p)
Consolidated income statement
year ended 31 December 2015
Consolidated statement of comprehensive income
year ended 31 December 2015
	 		 		 	 2015	 2014	
	 	 	 	 	 	 Note	 £000s	 £000s
Loss	for	the	year	after	taxation	 	 	 	 	 	 (6,645)	 (11,088)
Other	comprehensive	expense,	net	of	tax:	 	
Exchange	differences	arising	on	consolidation	of	foreign	operations	 	 	 21	 (616)	 (701)
Total comprehensive expense for the year 			 (7,261)	 (11,789) www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
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Annual report and financial statements 2015
27
	 		 		 	 2015	 2014	
	 	 	 	 	 	 Note	 £000s	 £000s
Non‑current assets		 	
Property,	plant	and	equipment		 	 	 	 	 10	 1,093 	 458
Goodwill		 	 	 	 	 	 11	 6,663 	 7,077
Other	intangible	assets		 	 	 	 	 	 12	 6 	2
Other	receivables		 	 	 	 	 	 14	 233	—
		 					 7,995		 7,537
Current assets		 	
Trade	and	other	receivables		 	 	 	 	 14	 1,641		 375
Investments	held	for	sale		 	 	 	 	 	 	 2 	2
Other	financial	assets	 	 	 	 	 	 15	 — 	 5,000
Cash	and	cash	equivalents	 	 	 	 	 		 16	 51,907 	 16,857
	 						 53,550 	 22,234
Current liabilities		 	
Trade	and	other	payables		 	 	 	 	 	 17	 (1,118)	 (2,013)
Total assets less current liabilities 						 60,427	 27,758	
Net assets 	 						 60,427	 27,758
Capital and reserves attributable to the owners of the parent	
Share	capital		 	 	 	 	 	 19	 3,490 	 2,605
Capital	reserves		 	 	 	 	 	 21	 165,074		 126,197
Translation	reserve		 	 	 	 	 	 	 1,298		 1,914
Accumulated	losses	 	 	 	 	 	 	 (109,435)		 (102,958)
Total equity 	 						 60,427		 27,758
The	financial	statements	were	approved	by	the	Board	on	29	April	2016.
Timothy Freeborn     Ali Mortazavi
Chief	Financial	Officer		 	 	 Chief	Executive	
and	Company	Secretary	 	
Company	number:	02992058
Consolidated balance sheet
at 31 December 2015 www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
28
Consolidated statement of changes in equity
year ended 31 December 2015
	 	 	 	 Share	 Capital		 Translation	 Accumulated	 Total	
	 	 	 	 capital	 reserves	 reserve	 losses	 equity	
	 	 	 	 £000s	 £000s	 £000s	 £000s	 £000s
At	1	January	2014	 	 	 	 2,353		 114,478		 	2,615		 (91,870)	 27,576
Recognition	of	share‑based	payments	 	 	 —	 1,127	 —	 —	 1,127
Shares	issued	in	year,	net	of	expenses	 	 	 252	 10,592	 —	 —	 10,844
Transactions with owners recognised directly in equity 252	 11,719	 —	 —	 11,971
Loss	for	year	 	 	 	 —	 —	 —	 (11,088)	 (11,088)
Other comprehensive income	 				
Exchange	differences	arising	on	consolidation		
of	foreign	operations	 	 	 	 —	 —	 (701)	 —	 (701)
Total comprehensive expense for the year  —	 —	 (701)	 (11,088)	 (11,789)
At	1	January	2015	 	 	 	 2,605	 126,197	 1,914	 (102,958)	 27,758
Recognition	of	share‑based	payments	 	 	 —	 777	 —	 —	 777
Lapse	of	vested	options	in	period	 	 	 —	 (168)	 —	 168	 —
Shares	issued	in	year,	net	of	expenses	 	 	 885	 38,268	 —	 —	 39,153
Transactions with owners recognised directly in equity 885	 38,877	 —	 168	 39,930
Loss	for	year	 	 	 	 —	 —	 —	 (6,645)	 (6,645)
Other comprehensive income	 				
Exchange	differences	arising	on	consolidation		
of	foreign	operations	 	 	 	 —	 —	 (616)	 —	 (616)
Total comprehensive expense for the year	 	 —	 —	 (616)	 (6,645)	 (7,261)
At 31 December 2015    3,490 165,074 1,298 (109,435) 60,427 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
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29
Company balance sheet
at 31 December 2015
	 		 		 		 31 December	 31	December	
	 		 		 		 2015	 2014	
	 	 	 	 	 	 Note	 £000s	 £000s
Non‑current assets		 	
Property,	plant	and	equipment		 	 	 	 	 10	 551	 18
Investment	in	subsidiaries	 	 	 	 	 	 13	 22,511	 34,026
Other	receivables		 	 	 	 	 	 14	 233	—
	 						 23,295	 34,044
Current assets		 	
Trade	and	other	receivables		 	 	 	 	 14	 1,532	 225
Other	financial	assets	 	 	 	 	 	 15	 —	 5,000
Cash	and	cash	equivalents			 	 	 	 	 16	 47,822	 15,761
	 						 49,354	 20,986
Current liabilities		 	
Trade	and	other	payables	 	 	 	 	 	 17	 (814)	 (1,033)
Total assets less current liabilities 						 71,835	 53,997
Net assets 	 						 71,835	 53,997
Capital and reserves attributable to the Company’s equity holders		
Share	capital		 	 	 	 	 	 19	 3,490	 2,605
Capital	reserves		 	 	 	 	 	 21	 164,890	 126,013
Accumulated	losses	 	 	 	 	 	 	 (96,545)	 (74,621)
Total equity		 						 71,835	 53,997
The	financial	statements	on	pages	26	to	31	were	approved	by	the	Board	on	29	April	2016	and	signed	on	its	behalf.
Timothy Freeborn     Ali Mortazavi
Chief	Financial	Officer	 	 	 Chief	Executive	
The	accompanying	accounting	policies	and	notes	form	an	integral	part	of	these	financial	statements.
Company	number:	02992058	 www.silence-therapeutics.com
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Annual report and financial statements 2015
30
Company statement of changes in equity
year ended 31 December 2015
	 	 	 	 	 Share	 Capital	 Accumulated	 Total	
	 	 	 	 	 capital	 reserves	 losses	 equity	
	 	 	 	 	 £000s	 £000s	 £000s	 £000s
At	1	January	2014		 	 	 	 	 2,353	 114,294	 (62,384)	 54,263
Recognition	of	share‑based	payments		 	 	 	 —	 1,127	 —	 1,127
Shares	issued	in	year,	net	of	expenses		 	 	 	 252	 10,592	 —	 10,844
Transactions with owners recognised directly in equity  252	 11,719	 —	 11,971
Loss	for	the	year	 	 	 	 	 —	 —	 (12,237)	 (12,237)
At	31	December	2014	 	 	 	 	 2,605	 126,013	 (74,621)	 53,997
Recognition	of	share‑based	payments		 	 	 	 —	 777	 —	 777
Lapse	of	vested	options	in	the	period	 	 	 	 —	 (168)	 168	 —
Shares	issued	in	year,	net	of	expenses		 	 	 	 885	 38,268	 —	 39,153
Transactions with owners recognised directly in equity  885	 38,877	 168	 39,930
Loss	for	the	year	 	 	 	 	 —	 —	 (22,092)	 (22,092)
At 31 December 2015     3,490 164,890 (96,545) 71,835 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
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31
Cash flow statements
year ended 31 December 2015
	 Consolidated	 Company
	
	 		 		 2015 	 2014		 2015	 2014	
	 		 		 £000s	 £000s	 £000s	 £000s
Cash flow from operating activities 				
Loss before tax	 			 (9,429)	 (11,980)	 (24,875)	 (13,129)
Depreciation	charges	 	 	 	 	 180	 90	 42	3
Amortisation	charges		 	 	 	 	 2	 242	 —	 —
Charge	for	the	year	in	respect	of	share‑based	payments	 	 	 777	 1,127	 777	 1,127
Foreign	exchange	(gain)/loss	on	intra‑group	loan	 	 	 —	 —	 746	 859
Finance	income	 	 	 	 	 (175)	 (139)	 (175)	 (139)
Corporation	tax	credits	received	 	 	 	 1,513	 892	 1,513	 892
Impairment	of	investment	 	 	 	 	 —	 —	 14,300	 —
Non‑cash	and	other	movements	 	 	 	 —	 260	 —	 273
	 				 (7,132)	 (9,508)	 (7,672)	 (10,114)
Increase	in	trade	and	other	receivables	 	 	 	 (228)	 (15)	 (269)	 (33)
(Decrease)/increase	in	trade	and	other	payables	 	 		 (895)	 67	 (220)	 344
Net cash outflow from operating activities 		 	 (8,255)	 (9,456) (8,161)	 (9,803)
Cash flow from investing activities 	 		 		 		
Decrease	in	other	financial	assets	 	 	 	 5,000	 —	 5,000	—
Increase	in	loan	to	subsidiary	undertakings		 	 	 —	 —	 (3,531)	 (1,002)
Interest	received		 	 	 	 	 175	 137	 175	 137
Purchase	of	property,	plant	and	equipment		 	 	 (843)	 (337)	 (575)	 (15)
Purchase	of	intangible	assets		 	 	 	 (7)	 (1)	 —	—
Net cash flow/(outflow) from investing activities		 	 	 4,325	 (201)	 1,069	 (880)
Cash flow from financing activities 				
Proceeds	from	issue	of	share	capital,	net	of	issue	costs		 	 	 39,153	 10,844 39,153	 10,844
Net cash inflow from financing activities		 39,153	 10,844	 39,153	 10,844
Increase in cash and cash equivalents					 35,223	 1,187	 32,061	 161
Cash and cash equivalents at start of year		 	 16,857	 15,890	 15,761	 15,600
Net	increase	in	the	year	 	 	 	 35,223	 1,187	 32,061	 161
Effect	of	exchange	rate	fluctuations	on	cash	held	 	 		 (173)	 (220)	 —	—
Cash and cash equivalents at end of year  	 51,907	 16,857	 47,822	 15,761
The	accompanying	accounting	policies	and	notes	form	an	integral	part	of	these	financial	statements. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
32
Notes to the financial statements
year ended 31 December 2015
1. General information
1.1 Group
Silence	Therapeutics	plc	and	its	subsidiaries	(together	the	“Group”)	are	primarily	involved	in	the	research	and	development	of	
novel	pharmaceutical	products.	Silence	Therapeutics	plc,	a	Public	Limited	Company	incorporated	and	domiciled	in	England,	is	the	
Group’s	ultimate	parent	Company.	The	address	of	Silence	Therapeutic	plc’s	registered	office	is	27‑28	Eastcastle	Street,	London	
W1W	8DH	and	the	principal	place	of	business	is	72	Hammersmith	Road,	London.
1.2 Company income statement
The	Company	has	taken	advantage	of	Section	408	of	the	Companies	Act	2006	and	has	not	included	its	own	income	statement	in	
these	financial	statements.	The	loss	for	the	financial	year	dealt	within	the	financial	statements	of	the	Company	was	as	follows:
       2015 2014 
       £000s £000s
       22,092 12,237
2. Principal accounting policies
2.1 Basis of preparation 
The	consolidated	financial	statements	of	the	Company	have	been	prepared	in	accordance	with	International	Financial	Reporting	
Standards	(IFRS)	and	IFRS	Interpretations	Committee	(IFRS	IC)	interpretations	as	adopted	by	the	European	Union	and	the	
Companies	Act	2006	applicable	to	companies	reporting	under	IFRS.	The	consolidated	financial	statements	have	been	prepared	
under	the	historical	cost	convention.	The	accounting	policies	set	out	below	have,	unless	otherwise	stated,	been	prepared	
consistently	for	all	periods	presented	in	these	consolidated	financial	statements.	The	financial	statements	are	prepared	in	pounds	
sterling	and	presented	to	the	nearest	thousand	pounds.	The	principal	accounting	policies	adopted	are	set	out	below.
The	following	Standards	and	Interpretations	were	in	issue	but	not	yet	effective,	and	therefore	have	not	been	applied	in	these	
financial	statements
IFRS	9		 –	Financial	Instruments	(effective	for	reporting	periods	commencing	on	or	after	1	January	2018)
IFRS	15		 –	Revenue	(effective	for	reporting	periods	commencing	on	or	after	1	January	2018)
IFRS	16		 –	Leases	(effective	for	reporting	periods	commencing	on	or	after	1	January	2019)
The	Directors	are	still	assessing	the	impact	of	the	adoption	of	the	Standards	and	Interpretations	listed	above.
2.2 Basis of consolidation
The	Group	financial	statements	consolidate	those	of	the	Company	and	its	controlled	subsidiary	undertakings	drawn	up	to	
31 December	2015.	The	Group	controls	an	entity	when	the	Group	is	expected	to,	or	has	rights	to,	variable	returns	from	its	
involvement	with	the	entity	and	has	the	ability	to	affect	those	returns	through	its	power	over	the	entity.	The	parent	Company	
financial	statements	present	information	about	the	Company	as	a	separate	entity	and	not	about	its	Group.	Where	necessary,	
adjustments	are	made	to	the	financial	statements	of	subsidiaries	to	bring	accounting	policies	into	line	with	those	used	for	reporting	
the	operations	of	the	Group.	All	intra‑group	transactions,	balances,	income	and	expenses	are	eliminated	on	consolidation.
2.3 Going concern
The	financial	statements	have	been	prepared	on	a	going	concern	basis	that	assumes	that	the	Group	will	continue	in	operational	
existence	for	the	foreseeable	future.	The	Directors	consider	that	the	continued	adoption	of	the	going	concern	basis	is	appropriate	
and	the	financial	statements	do	not	reflect	any	adjustments	that	would	be	required	if	they	were	to	be	prepared	on	any	other	basis.
As	at	31	December	2015	had	cash	balances	of	£51.9m.	The	Directors	have	reviewed	the	working	capital	requirements	of	the	
Group	for	the	next	twelve	months	and	are	confident	that	these	can	be	met.	
The	Directors,	having	prepared	cash	flow	forecasts,	believe	that	existing	cash	resources	will	provide	sufficient	funds	for	the	Group	
to	continue	its	research	and	development	programmes	and	to	remain	in	operation	for	at	least	twelve	months	from	the	date	of	
approval	of	these	financial	statements.	
The	Group’s	business	activities,	together	with	the	factors	likely	to	affect	its	future	development,	performance	and	position	are	set	
out	in	the	strategic	report	on	pages	1	to	12.	
2.4 Research and development
Expenditure	on	research	activities	is	recognised	in	the	income	statement	as	an	expense	as	incurred.	Further	details	on	research	
and	development	costs	can	be	found	in	note	2.11. www.silence-therapeutics.com
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33
2.5 Revenue recognition
The	Group’s	income	(in	years	where	there	is	income)	consists	of	licence	fees,	milestone	and	option	payments,	grant	income	
and	fees	from	research	and	development	collaborations.	Income	is	measured	at	the	fair	value	of	the	consideration	received	
or receivable.
Licence	fees,	option	and	milestone	payments	are	recognised	in	full	on	the	date	that	they	are	contractually	receivable	in	those	
circumstances	where:
•	 the	amounts	are	not	time	related;
•	 the	amounts	are	not	refundable;
•	 the	licensee	has	unrestricted	rights	to	exploit	the	technology	within	the	terms	set	by	the	licence;	and
•	 the	Group	has	no	further	contractual	duty	to	perform	any	future	services.
Where	such	fees	or	receipts	require	future	performance	or	financial	commitments	on	behalf	of	the	Group,	the	revenue	is	
recognised	pro	rata	to	the	services	or	commitments	being	performed.	Funds	received	that	have	not	been	recognised	are	treated	
as	deferred	revenue	and	recognised	in	trade	and	other	payables.
Revenues	from	work	or	other	research	and	testing	carried	out	for	third	parties	are	recognised	when	the	work	to	which	they	relate	
has	been	performed.
All	time	related	receipts	in	respect	of	annual	licence	fees	or	similar	technology	access	fees	are	recognised	as	revenue	on	a	
straight‑line	basis	over	the	period	of	the	underlying	contract.
2.6 Foreign currency translation
The	Group’s	consolidated	financial	statements	are	presented	in	sterling	(£),	which	is	also	the	functional	currency	of	the	parent	
Company.	The	individual	financial	statements	of	each	Group	entity	are	prepared	in	the	currency	of	the	primary	economic	
environment	in	which	the	entity	operates	(its	functional	currency).
In	preparing	the	financial	statements	of	the	individual	entities,	transactions	in	currencies	other	than	the	entity’s	functional	currency	
(foreign	currencies)	are	recorded	at	the	rates	of	exchange	prevailing	on	the	dates	of	the	transactions.	At	each	balance	sheet	date,	
monetary	items	denominated	in	foreign	currencies	are	retranslated	at	the	rates	prevailing	on	the	balance	sheet	date.	
Exchange	differences	arising	on	the	settlement	of	monetary	items,	and	on	the	retranslation	of	monetary	items,	are	included	in	
the	income	statement	for	the	year.	When	a	gain	or	loss	on	a	non‑monetary	item	is	recognised	directly	in	equity,	any	exchange	
component	of	that	gain	or	loss	is	also	recognised	directly	in	equity.	When	a	gain	or	loss	on	a	non‑monetary	item	is	recognised	in	
the	income	statement,	any	exchange	component	of	that	gain	or	loss	is	also	recognised	in	the	income	statement.
For	the	purpose	of	presenting	consolidated	financial	statements,	the	assets	and	liabilities	of	the	Group’s	foreign	operations	
(including	comparatives)	are	expressed	in	sterling	using	exchange	rates	prevailing	on	the	balance	sheet	date.	Income	and	expense	
items	(including	comparatives)	are	translated	at	the	average	exchange	rates	for	the	period.	Exchange	differences	arising,	if	any,	are	
recognised	in	equity.	Cumulative	translation	differences	are	recognised	in	profit	or	loss	in	the	period	in	which	the	foreign	operation	
is	disposed	of.
Goodwill	and	fair	value	adjustments	arising	on	the	acquisition	of	a	foreign	operation	are	treated	as	assets	and	liabilities	of	the	
foreign	operation	and	translated	at	the	closing	rate.
2.7 Defined contribution pension funds
In	2015	the	Group	had	a	defined	benefit	pension	scheme	in	which	it	paid	£37k	(2014:	nil)	of	salary	to	UK	employees’	individual	
pension	schemes.	The	contributions	are	recognised	as	an	expense	when	they	fall	due.	
2.8 Business combinations
There	were	no	business	combinations	as	defined	by	IFRS	3	(revised)	during	2014	or	2015.	
Business	combinations	which	occurred	in	2010	were	accounted	for	by	applying	the	acquisition	method	described	in	IFRS	3	
(revised)	as	at	the	acquisition	date,	which	is	the	date	on	which	control	is	transferred	to	the	Group.	In	arriving	at	the	cost	of	
acquisition,	the	fair	value	of	the	shares	issued	by	the	Company	is	taken	to	be	the	bid	price	of	those	shares	at	the	date	of	the	issue.	
Where	this	figure	exceeds	the	nominal	value	of	the	shares,	the	excess	amount	is	treated	as	an	addition	to	the	merger	reserve.
Acquisitions before 1 January 2010
For	acquisitions	which	occurred	before	1	January	2010,	goodwill	represents	the	excess	of	the	cost	of	the	acquisition	over	the	
Group’s	interest	in	the	recognised	amount	(generally	fair	value)	of	the	identifiable	assets,	liabilities	and	contingent	liabilities	of	
the acquiree.	
Transaction	costs,	other	than	those	associated	with	the	issue	of	debt	or	equity	securities,	that	the	Group	incurred	in	connection	
with	business	combinations	were	capitalised	as	part	of	the	cost	of	the	acquisition. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
34
Notes to the financial statements continued
year ended 31 December 2015
2. Principal accounting policies continued
2.9 Goodwill and other intangible assets
Goodwill
Goodwill	is	stated	at	cost	less	any	accumulated	impairment	losses.	Goodwill	is	allocated	to	cash‑generating	units	and	is	not	
amortised	but	is	tested	annually	for	impairment.
Goodwill	arising	on	the	acquisition	of	a	subsidiary	represents	the	excess	of	the	cost	of	acquisition	over	the	Group’s	interest	in	the	
net	fair	value	of	the	identifiable	assets,	liabilities	and	contingent	liabilities	of	the	subsidiary	at	the	date	of	acquisition.	Goodwill	is	
initially	recognised	as	an	asset	at	cost	and	is	subsequently	measured	at	cost	less	any	accumulated	impairment	losses.	On	disposal	
of	a	subsidiary,	the	attributable	amount	of	goodwill	is	included	in	the	determination	of	the	profit	or	loss	on	disposal.
Other intangible assets
Other	intangible	assets	that	are	acquired	by	the	Group	are	stated	at	cost	less	accumulated	amortisation	and	less	accumulated	
impairment	losses.
Amortisation
Amortisation	is	charged	to	the	income	statement	on	a	straight‑line	basis	over	the	estimated	useful	lives	of	intangible	assets	unless	
such	lives	are	indefinite.	Intangible	assets	with	an	indefinite	useful	life	and	goodwill	are	systematically	tested	for	impairment	at	
each	balance	sheet	date.	Other	intangible	assets	are	amortised	from	the	date	they	are	available	for	use.	The	estimated	useful	lives	
are	as	follows:
Acquired	patents	and	trademarks		 10‑15	years
2.10 Property, plant and equipment
The	Group	holds	no	property	assets.
All	plant	and	equipment	is	stated	in	the	financial	statements	at	its	cost	of	acquisition	less	a	provision	for	depreciation.
Depreciation	is	charged	to	write	off	the	cost	less	estimated	residual	values	of	plant	and	equipment	on	a	straight‑line	basis	over	
their	estimated	useful	lives.	All	plant	and	equipment	is	estimated	to	have	useful	economic	lives	of	between	three	and	ten	years.	
Estimated	useful	economic	lives	and	residual	values	are	reviewed	each	year	and	amended	if	necessary.
2.11 Other intangible assets and research and development activities
Intellectual property rights
Other	intangible	assets	include	both	acquired	and	internally	developed	intellectual	property	used	in	research	and	operations.	
These	assets	are	stated	at	cost	less	amortisation.
Acquired	intellectual	property	rights	are	capitalised	on	the	basis	of	the	costs	incurred	to	acquire	the	specific	rights.
Amortisation	is	applied	to	write	off	the	cost	less	residual	value	of	the	intangible	assets	on	a	straight‑line	basis	over	their	
estimated	useful	life.	The	principal	rates	used	are	6.7%	and	10%	per	annum.	Amortisation	is	included	within	research	and	
development costs.
Capitalisation of research and development costs
Costs	associated	with	research	activities	are	treated	as	an	expense	in	the	period	in	which	they	are	incurred.
Costs	that	are	directly	attributable	to	the	development	phase	of	an	internal	project	will	only	be	recognised	as	intangible	assets	
provided	they	meet	the	following	requirements:
•	 an	asset	is	created	that	can	be	separately	identified;
•	 the	technical	feasibility	exists	to	complete	the	intangible	asset	so	that	it	will	be	available	for	sale	or	use	and	the	Group	has	the	
intention	and	ability	so	to	do;
•	 it	is	probable	that	the	asset	created	will	generate	future	economic	benefits	either	through	internal	use	or	sale;
•	 sufficient	technical,	financial	and	other	resources	are	available	for	completion	of	the	asset;	and
•	 the	expenditure	attributable	to	the	intangible	asset	during	its	development	can	be	reliably	measured.
Careful	judgement	by	the	Group’s	management	is	applied	when	deciding	whether	recognition	requirements	for	development	costs	
have	been	met.	This	is	necessary	as	the	economic	success	of	any	product	development	is	uncertain	and	may	be	subject	to	future	
technical	problems	at	the	time	of	recognition.	Judgements	are	based	on	the	information	available	at	each	balance	sheet	date.
To	date,	no	development	costs	have	been	capitalised	in	respect	of	the	internal	projects	on	the	grounds	that	the	costs	to	date	
are	either	for	the	research	phase	of	the	projects	or,	if	relating	to	the	development	phase,	then	the	work	so	far	does	not	meet	the	
recognition	criteria	set	out	above. www.silence-therapeutics.com
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35
2.12 Impairment testing of goodwill, other intangible assets and property, plant and equipment
At	each	balance	sheet	date,	the	Group	assesses	any	impairment	event	and	whether	there	is	any	indication	that	the	carrying	value	
of	any	asset	may	be	impaired.	If	any	such	indication	exists,	the	recoverable	amount	of	the	asset	is	estimated	in	order	to	determine	
the	extent	of	the	impairment	loss	(if	any).	Where	it	is	not	possible	to	estimate	the	recoverable	amount	of	an	individual	asset,	the	
Group	estimates	the	recoverable	amount	of	the	cash‑generating	unit	to	which	the	asset	belongs.	Goodwill	is	subject	to	annual	
impairment	review.
For	the	purposes	of	assessing	impairment,	assets	are	grouped	at	the	lowest	levels	for	which	there	are	separately	identifiable	cash	
flows	(cash‑generating	units).	Goodwill	is	allocated	to	those	cash‑generating	units	that	are	expected	to	benefit	from	synergies	
of	the	related	business	combination	and	represent	the	lowest	level	within	the	Group	at	which	management	controls	the	related	
cash flows.
An	impairment	loss	is	recognised	for	the	amount	by	which	the	asset’s	or	cash‑generating	unit’s	carrying	amount	exceeds	its	
recoverable	amount.	The	recoverable	amount	is	the	higher	of	fair	value,	reflecting	market	conditions	less	costs	to	sell,	and	
value‑in‑use.	Impairment	losses	recognised	for	cash‑generating	units	to	which	goodwill	has	been	allocated	are	credited	initially	to	
the	carrying	amount	of	goodwill.	Any	remaining	impairment	loss	is	charged	pro	rata	to	the	other	assets	in	the	cash‑generating	unit.
2.13 Investments in subsidiaries
Investments	in	subsidiaries	comprise	shares	in	the	subsidiaries	and	loans	from	the	Company.	Investments	in	shares	of	the	
subsidiaries	are	stated	at	cost	less	provisions	for	impairment.
2.14 Financial instruments
Financial	assets	and	financial	liabilities	are	recognised	on	the	Group’s	balance	sheet	when	the	Group	becomes	a	party	to	the	
contractual	provisions	of	the	instrument.
Financial	assets	can	be	divided	into	the	following	categories:	loans	and	receivables,	financial	assets	at	fair	value	through	profit	or	
loss,	available‑for‑sale	financial	assets,	held‑to‑maturity	investments	and	other	financial	assets.	Financial	assets	are	assigned	to	
the	different	categories	by	management	on	initial	recognition,	depending	on	the	purpose	for	which	the	instruments	were	acquired.	
The	designation	of	financial	assets	is	re‑evaluated	at	every	reporting	date	at	which	a	choice	of	classification	or	accounting	
treatment	is	available.
De‑recognition	of	financial	instruments	occurs	when	the	rights	to	receive	cash	flows	from	investments	expire	or	are	transferred	
and	substantially	all	of	the	risks	and	rewards	of	ownership	have	been	transferred.	An	assessment	for	impairment	is	undertaken	at	
least	at	each	balance	sheet	date	whether	or	not	there	is	objective	evidence	that	a	financial	asset	or	a	group	of	financial	assets	is	
impaired.
Trade and other receivables
Trade	and	other	receivables	are	measured	at	initial	recognition	at	fair	value	plus,	if	appropriate,	directly	attributable	transaction	
costs	and	are	subsequently	measured	at	amortised	cost	using	the	effective	interest	method.	Appropriate	allowances	for	estimated	
irrecoverable	amounts	are	recognised	in	the	income	statement	when	there	is	objective	evidence	that	the	asset	is	impaired.	The	
allowance	recognised	is	measured	as	the	difference	between	the	asset’s	carrying	amount	and	the	present	value	of	estimated	
future	cash	flows	discounted	at	an	effective	interest	rate	computed	at	initial	recognition.
Loans and receivables
Loans	and	receivables	are	non‑derivative	financial	assets	with	fixed	or	determinable	payments	that	are	not	quoted	in	an	active	
market.	They	arise	when	the	Group	or	Company	provides	money	directly	to	a	debtor	with	no	intention	of	trading	the	receivables.	
Loans	receivable	are	measured	at	initial	recognition	at	fair	value	plus,	if	appropriate,	directly	attributable	transaction	costs	and	are	
subsequently	measured	at	amortised	cost	using	the	effective	interest	method,	less	provision	for	impairment.	Any	change	in	their	
value	is	recognised	in	the	income	statement.
Other financial assets
Other	financial	assets	are	initially	measured	at	fair	value	(with	direct	transaction	costs	being	amortised	over	the	life	of	the	loan)	
and	are	subsequently	remeasured	to	amortised	cost	using	the	effective	interest	rate	method	at	each	reporting	date.	Changes	in	
carrying	value	are	recognised	in	profit.
The	Group	holds	certain	investments	in	restricted	or	unvested	stock.	These	instruments	are	restricted	or	unvested	for	a	variety	of	
reasons	including	restrictions	based	on	the	agreed	delivery	of	contractual	milestones.	These	instruments	have	no	value	until	the	
restrictions	are	removed	or	the	shares	vest	and	they	are	only	recognised	when	the	associated	conditions	have	been	satisfied.
Derivatives
Derivatives	are	initially	measured	at	fair	value	(with	direct	transaction	costs	being	included	in	profit	as	an	expense)	and	are	
subsequently	remeasured	to	fair	value	at	each	reporting	date.	Changes	in	carrying	value	are	recognised	in	profit. www.silence-therapeutics.com
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36
2. Principal accounting policies continued
2.14 Financial instruments continued
Cash and cash equivalents
Cash	and	cash	equivalents	comprise	cash	on	hand	and	demand	deposits	that	are	readily	convertible	to	a	known	amount	of	cash	
and	are	subject	to	an	insignificant	risk	of	change	in	value.
Financial liabilities and equity
Financial	liabilities	and	equity	instruments	issued	by	the	Group	are	classified	according	to	the	substance	of	the	contractual	
arrangements	entered	into	and	the	definitions	of	a	financial	liability	and	an	equity	instrument.	A	financial	liability	is	a	contractual	
obligation	to	either	deliver	cash	or	another	financial	asset	to	another	entity	or	to	exchange	a	financial	asset	or	financial	liability	with	
another	entity,	including	obligations	which	may	be	settled	by	the	Group	using	its	equity	instruments.	An	equity	instrument	is	any	
contract	that	evidences	a	residual	interest	in	the	assets	of	the	Group	after	deducting	all	of	its	liabilities.	The	accounting	policies	
adopted	for	specific	financial	liabilities	and	equity	instruments	are	set	out	below.
Financial liabilities
At	initial	recognition,	financial	liabilities	are	measured	at	their	fair	value	plus,	if	appropriate,	any	transaction	costs	that	are	directly	
attributable	to	the	issue	of	the	financial	liability.	After	initial	recognition,	all	financial	liabilities	are	measured	at	amortised	cost	using	
the	effective	interest	method.
Equity instruments
Equity	instruments	issued	by	the	Group	are	recorded	at	the	proceeds	received	net	of	direct	issue	costs.
2.15 Operating leases
Leases	where	substantially	all	the	risks	and	rewards	of	ownership	remain	with	the	lessor	are	accounted	for	as	operating	leases	and	
are	accounted	for	on	a	straight‑line	basis	over	the	term	of	the	lease	and	charged	to	the	income	statement.
2.16 Share‑based payments
Historically	the	Group	has	issued	equity‑settled	share‑based	payments	to	certain	employees	and	advisers	(see	note	25).	
Equity‑settled	share‑based	payments	are	measured	at	fair	value	(excluding	the	effect	of	non	market‑based	vesting	conditions)	at	
the	date	of	grant.	The	fair	value	so	determined	is	expensed	on	a	straight‑line	basis	over	the	vesting	period,	based	on	the	Group’s	
estimate	of	the	number	of	shares	that	will	eventually	vest	and	adjusted	for	the	effect	of	non	market‑based	vesting	conditions.	The	
value	of	the	change	is	adjusted	to	reflect	expected	and	actual	levels	of	award	vesting,	except	where	failure	to	vest	is	as	a	result	of	
not	meeting	a	market	condition.	Cancellations	of	equity	instruments	are	treated	as	an	acceleration	of	the	vesting	period	and	any	
outstanding	charge	is	recognised	in	full	immediately.	Fair	value	is	measured	using	a	binomial	pricing	model.	The	key	assumptions	
used	in	the	model	have	been	adjusted,	based	on	management’s	best	estimate,	for	the	effects	of	non‑transferability,	exercise	
restrictions	and	behavioural	considerations.
2.17 Equity
Share	capital	is	determined	using	the	nominal	value	of	shares	that	have	been	issued.
The	share	premium	account	includes	any	premiums	received	on	the	initial	issuing	of	the	share	capital.	Any	transaction	costs	
associated	with	the	issuing	of	shares	are	deducted	from	the	share	premium	account,	net	of	any	related	income	tax	benefits.
The	merger	reserve	represents	the	difference	between	the	nominal	value	and	the	market	value	at	the	date	of	issue	of	shares	issued	
in	connection	with	the	acquisition	by	the	Group	of	an	interest	in	over	90%	of	the	share	capital	of	another	company.
Equity‑settled	share‑based	payments	are	credited	to	a	share‑based	payment	reserve	as	a	component	of	equity	until	related	
options	or	warrants	are	exercised.
Foreign	currency	translation	differences	are	included	in	the	translation	reserve.
Profit	and	loss	account	(deficit)	includes	all	current	and	prior	period	results	as	disclosed	in	the	income	statement.
2.18 Taxation
Current	tax	payable	is	based	on	taxable	profit	for	the	year.	Taxable	profit	differs	from	profit	as	reported	in	the	income	statement	
because	it	excludes	items	of	income	or	expense	that	are	taxable	or	deductible	in	other	years	and	it	further	excludes	items	that	are	
never	taxable	or	deductible.	Current	tax	liabilities	are	calculated	using	tax	rates	that	have	been	enacted	or	substantively	enacted	
by	the	balance	sheet	date.
Tax	receivable	arises	from	the	UK	legislation	regarding	the	treatment	of	certain	qualifying	research	and	development	costs,	
allowing	for	the	surrender	of	tax	losses	attributable	to	such	costs	in	return	for	a	tax	rebate.	Research	and	development	tax	credits	
are	recognised	when	the	receipt	is	probable.
Deferred	tax	is	recognised	on	differences	between	the	carrying	amounts	of	assets	and	liabilities	in	the	financial	statements	and	the	
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
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37
corresponding	tax	bases	used	in	the	computation	of	taxable	profit,	and	is	accounted	for	using	the	balance	sheet	liability	method.	
Deferred	tax	liabilities	are	generally	recognised	for	all	taxable	temporary	differences	and	deferred	tax	assets	are	recognised	to	
the	extent	that	it	is	probable	that	taxable	profits	will	be	available	against	which	deductible	temporary	differences	can	be	utilised.	
Such	assets	and	liabilities	are	not	recognised	if	the	temporary	difference	arises	from	initial	recognition	of	goodwill	or	from	the	initial	
recognition	(other	than	in	a	business	combination)	of	other	assets	and	liabilities	in	a	transaction	that	affects	neither	the	taxable	
profit	nor	the	accounting	profit.
Deferred	tax	liabilities	are	recognised	for	taxable	temporary	differences	arising	on	investments	in	subsidiaries	and	associates,	and	
interests	in	joint	ventures,	except	where	the	Group	is	able	to	control	the	reversal	of	the	temporary	difference	and	it	is	probable	that	
the	temporary	difference	will	not	reverse	in	the	foreseeable	future.
The	carrying	amount	of	deferred	tax	assets	is	reviewed	at	each	balance	sheet	date	and	reduced	to	the	extent	that	it	is	no	longer	
probable	that	sufficient	taxable	profits	will	be	available	to	allow	all	or	part	of	the	asset	to	be	recovered.
Deferred	tax	is	calculated	at	the	tax	rates	that	are	expected	to	apply	in	the	period	when	the	liability	is	settled	or	the	asset	realised.	
Deferred	tax	is	charged	or	credited	to	the	income	statement,	except	when	it	relates	to	items	charged	or	credited	directly	to	equity,	
in	which	case	the	deferred	tax	is	also	dealt	with	in	equity.
Deferred	tax	assets	and	liabilities	are	offset	when	there	is	a	legally	enforceable	right	to	set	off	current	tax	assets	against	current	tax	
liabilities	and	when	they	relate	to	income	taxes	levied	by	the	same	taxation	authority	and	the	Group	intends	to	settle	its	current	tax	
assets	and	liabilities	on	a	net	basis.
2.19 Critical accounting judgements and key sources of estimation uncertainty
In	the	process	of	applying	the	entity’s	accounting	policies,	management	makes	estimates	and	assumptions	that	have	an	effect	
on	the	amounts	recognised	in	the	financial	statements.	Although	these	estimates	are	based	on	management’s	best	knowledge	of	
current	events	and	actions,	actual	results	may	ultimately	differ	from	those	estimates.
The	key	assumptions	concerning	the	future,	and	other	key	sources	of	estimation	uncertainty	at	the	balance	sheet	date,	that	have	a	
significant	risk	of	causing	a	material	adjustment	to	the	carrying	amounts	of	assets	and	liabilities	within	the	next	financial	year,	are	
those	relating	to:
•	 the	treatment	of	development	expenditure
•	 the	carrying	value	of	the	Company’s	investment	in	its	subsidiaries;	and
•	 the	future	recoverability	of	goodwill.	
The	Group	expends	considerable	sums	on	its	development	projects,	with	its	total	research	and	development	costs	for	2015	
amounting	to	£7.1m	(2014:	£8.9m).	The	Board	has	considered	the	criteria	under	IAS	38	to	determine	whether	costs	can	be	
capitalised,	concluding	that	it	would	not	be	able	to	prove	reliably	that	such	costs	could	be	recovered	due	to	the	risk	factors	
involved.	Therefore,	all	such	costs	have	been	treated	as	expenses	as	they	were	incurred.	Any	decision	to	treat	part	of	those	costs	
as	capital	items	could	have	a	significant	impact	on	the	Group’s	results	and	balance	sheet.
The	Group’s	main	activities	are	carried	out	by	subsidiary	companies	which	are	financed	by	ongoing	investment	by	the	parent	
Company.	These	investments	are	carried	in	the	books	of	the	parent	Company	at	cost	less	provisions	for	impairment.	The	carrying	
value	at	31	December	2015	is	£22.5m	(2014:	£34.0m).	The	key	assumptions	concerning	the	carrying	value	of	the	investments	
in,	and	loans	to,	subsidiaries	relate	to	the	continuing	progress	of	the	research	and	development	programmes.	As	noted	below,	
there	are	a	number	of	risks	and	uncertainties	around	those	assumptions	and	the	crystallisation	of	any	of	those	risks	could	
have	a	significant	impact	on	the	assessment	of	the	carrying	value	of	the	investment	shown	in	the	financial	statements	of	the	
parent Company.
Goodwill	is	carried	in	the	financial	statements	at	a	value	of	£6.7m	(2014:	£7.1m).	The	key	assumptions	concerning	the	carrying	
value,	or	otherwise,	for	both	the	goodwill	and	other	intangible	assets	relate	to	the	continuing	progress	of	the	Group’s	research	and	
development	programmes,	which	are	subject	to	risks	common	to	all	biotechnology	businesses.	These	risks	include	the	impact	
of	competition	in	the	specific	areas	of	development,	the	potential	failure	of	the	projects	in	development	or	clinical	trials	and	the	
possible	inability	to	progress	projects	due	to	regulatory,	manufacturing	or	intellectual	property	issues	or	the	lack	of	available	funds	
or	other	resources.	Furthermore,	the	crystallisation	of	any	of	these	risks	could	have	a	significant	impact	on	the	assessment	of	the	
value	of	both	goodwill	and	other	intangible	assets.
2.20 Segment reporting
Operating	segments	are	reported	in	a	manner	consistent	with	the	internal	reporting	provided	to	the	chief	operating	decision‑maker.	
The	chief	operating	decision‑maker,	who	is	responsible	for	allocating	resources	and	assessing	performance	of	the	operating	
segments,	has	been	identified	as	the	Group’s	Chief	Executive,	Ali	Mortazavi. www.silence-therapeutics.com
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38
3. Revenue
There	was	no	revenue	in	the	year.	In	2014	revenue	in	the	year	was	from	licence,	grant	and	service	fees	generated	by	both	
European	and	US	operations.	The	analysis	of	revenues	by	geographical	destination	is:
	 		 		 		 2015	 2014	
	 		 		 		 £000s 	 £000s	
Europe		 	 	 	 	 	 	 —	1
North	America	 	 	 	 	 	 	 —	 14
Asia/Pacific	 	 	 	 	 	 	 —	—
	 						 —	 15
4. Segment reporting
In	2015,	the	Group	operated	in	the	specific	technology	field	of	RNA	therapeutics.
	 	 	 	 	 	 	 UK	 Germany	
Non‑current	assets	 	 	 	 	 	 	 £000s	 £000s
As at 31 December 2015       784 7,211
As	at	31	December	2014	 	 	 	 	 	 	 18	 7,519
Segment	loss	used	by	the	Board	in	its	assessment	of	the	entity	is	loss	before	tax.
Business segments
      RNA Group Consolidated 
      therapeutics unallocated data 
2015      £000s £000s £000s
Revenue	from	external	customers		 	 	 	 	 — — —
Operating	loss		 	 	 	 	 	 (7,114) (2,655) (9,769)
Interest	and	other	income		 	 	 	 	 	 340 — 340
Segment	loss	for	the	year	before	taxation	 	 	 	 	 (6,774) (2,655) (9,429)
Segment	assets		 	 	 	 	 	 7,211 54,334 61,545
Segment	liabilities		 	 	 	 	 	 (305) (813) (1,118)
Costs	to	acquire	property,	plant	and	equipment		 	 	 	 268 575 843
Costs	to	acquire	intangible	assets	 	 	 	 	 7 — 7
Depreciation,	amortisation	and	abandonment	of	patents	 	 	 	 140 42 182
Charge	for	non‑cash	expenses:	share‑based	payments	charge		 	 	 — 777 777
Segment	non‑current	assets		 	 	 	 	 7,211 784 7,995
     	 RNA	 Group	 Consolidated	
	 	 	 	 	 	 therapeutics	 unallocated	 data	
2014	 	 	 	 	 	 £000s	 £000s	 £000s
Revenue	from	external	customers		 	 	 	 	 15	 —	 15
Operating	loss		 	 	 	 	 	 (8,869)	 (3,258)	 (12,127)
Interest	and	other	income		 	 	 	 	 	 147	 —	 147
Segment	loss	for	the	year	before	taxation	 	 	 	 	 (8,722)	 (3,258)	 (11,980)
Segment	assets		 	 	 	 	 	 7,519	 22,252	 29,771
Segment	liabilities		 	 	 	 	 	 (980)	 (1,033)	 (2,013)
Costs	to	acquire	property,	plant	and	equipment		 	 	 	 322	 15	 337
Costs	to	acquire	intangible	assets		 	 	 	 	 1	 —	 1
Depreciation,	amortisation	and	abandonment	of	patents	 	 	 	 329	 3	 332
Charge	for	non‑cash	expenses:	share‑based	payments	charge		 	 	 —	 1,127	 1,127
Segment	non‑current	assets		 	 	 	 	 7,519	 18	 7,537
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
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Annual report and financial statements 2015
39
5. Operating loss
This	is	stated	after	charging:
	 		 		 		 2015	 2014	
	 		 		 		 £000s 	 £000s	
Depreciation	of	property,	plant	and	equipment		 	 	 	 	 180	 90
Amortisation	of	intangibles	and	abandonment	of	patents	 	 	 	 	 2	 242
Share‑based	payments	charge	 	 	 	 	 	 777	 1,127
Fees	payable	to	the	Company’s	auditor	for	the	audit	of	the	parent	Company	and	the	consolidation:	 	
–	audit	of	these	financial	statements		 	 	 	 	 	 85	 55
–	other	assurance	services			 	 	 	 	 	 5	—
–	tax	compliance	services	 	 	 	 	 	 		 55	 14
Operating	lease	payments	on	offices	 	 	 	 	 	 602	 566
6. Directors and staff costs
Staff	costs,	including	Directors’	remuneration,	during	the	year	were	as	follows:
	 		 		 		 2015	 2014	
	 		 		 		 £000s 	 £000s	
Wages	and	salaries		 	 	 	 	 	 	 3,770	 3,534
Termination	benefits		 	 	 	 	 	 	 166	 117
Social	security	costs		 	 	 	 	 	 	 496	 377
Charge	in	respect	of	share‑based	payments		 	 	 	 	 777	 1,127
Pension	costs	 	 	 	 	 	 	 37	—
	 						 5,246	 5,155
Directors’ remuneration
	 Base  Benefits   	 Base	 Benefits	 	 	 	
	 salary  in kind Bonus Pension Total	 salary	 in	kind	 Bonus	 Pension	 Total	
	 2015 2015 2015 2015 2015	 2014	 2014	 2014	 	2014	 2014	
	 £000 £000 £000 £000 £000	 £000	 £000	 £000	 £000	 £000
Executive  
Directors	 									
Ali	Mortazavi	 180 9 108 — 297	 140	 7	 60	 —	 207
Timothy	Freeborn	140 3 40 — 183	 130	 2	 37	 —	 169
Michael	Khan
1
	 186 — — — 186	 120	 —	 —	 —	 120
Lars	Karlsson
2
	 127 — — 37 164	—	—	—	—	—
Annie	Cheng
3
		 12 — — — 12 140	 —	 —	 —	 140
Non‑Executive  
Directors	
Stephen	Parker
4
	53 — — — 53	 35	 —	 —	 —	 35
Alistair	Gray
5
	 5	 — — —	 5	—	—	—	—	—
Alastair	Riddell
6
	 119	 — — —	 119	 42	 —	 —	 —	 42
Simon	Sturge
7
	 36 — — — 36	 75	 —	 —	 —	 75
Total 858 12 148 37 1,055 682	 9	 97	 —	 788
1	 See	related	party	transaction	note	25
2	 Appointed	as	a	Director	(Head	of	Research	and	Development)	on	5	January	2015
3	 Resigned	as	a	Director	on	2	September	2014,	but	continued	as	an	employee	until	February	2015
4	 Appointed	as	Chairman	on	22	September	2015
5	 Appointed	as	a	Director	on	12	November	2015
6	 Appointed	as	Chairman	on	5	January	2015,	resigned	as	Chairman	22	September	2015	and	received	£20k	for	loss	of	office	included	within	base	
salary	above.	Alastair	Riddell	served	as	Interim	Executive	Chairman	from	July	2015	to	22	Sept	2015
7	 Resigned	as	a	Director	on	18	January	2016,	stepped	down	as	Chairman	on	5	January	2015 www.silence-therapeutics.com
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Annual report and financial statements 2015
40
6. Directors and staff costs continued
The	monthly	average	number	of	employees,	including	Executive	Directors,	during	the	year	was	56	(2014:	51).	Of	these,	the	monthly	
average	number	of	employees	working	in	research	and	development	and	administration	was	46	(2014:	35)	and	10	(2014:	16)	
respectively.	
Apart	from	the	Directors,	the	monthly	average	number	of	employees	of	the	parent	Company	was	11	(2014:	7);	5	working	in	
administration	(2014:	5)	and	6	in	research	and	development	(2014:	2).
	 		 		 	 Share options	 Share	options	
	 		 		 	 charge  charge 
       2015		 2014	
	 		 		 	 £’000	 £’000
Ali	Mortazavi	 	 	 	 	 	 	 —	 183
Timothy	Freeborn	 	 	 	 	 	 	 73	 103
Michael	Khan	 	 	 	 	 	 	 43	 114
Lars	Karlsson	 	 	 	 	 	 	 88	—
Jerry	Randall	 	 	 	 	 	 	 —	 199
Total	 					 204	 599
The	Directors	of	the	Group	are	considered	by	the	Board	to	be	the	key	management	of	the	Group.
7. Finance income
The	finance	income	comprises:
	 		 		 		 2015	 2014	
	 		 		 		 £000s	 £000s
Bank	interest	receivable	 	 	 	 	 	 	 175	 139
Other	income	 	 	 	 	 	 	 165	8
Finance	and	other	income	 	 	 	 	 	 	 340	 147
8. Taxation
Deferred	tax	charge	in	2015	was	nil	(2014:	nil).	Reconciliation	of	current	tax	credit	at	standard	rate	of	UK	corporation	tax	to	the	
current	tax	credit:
	 		 		 		 2015	 2014	
	 		 		 		 £000s	 £000s
Loss	before	tax		 	 	 	 	 	 	 (9,429)	 (11,980)
Tax	credit	at	the	standard	rate	of	UK	corporation	tax	of	20.25%	(2014:	21.5%)		 	 1,909	 2,576
Effect	of	overseas	tax	rate	 	 	 	 	 	 	 82	 24
Impact	of	unrelieved	tax	losses	not	recognised		 	 	 	 	 (1,991)	 (2,600)
Research	and	development	tax	credit	in	respect	of	prior	year	 	 	 	 1,513	 892
Research	and	development	tax	credit	in	respect	of	current	year	 	 	 	 1,271	—
	 						 2,784	 892
Estimated	tax	losses	of	£73.5m	(2014:	£63.5m)	are	available	for	relief	against	future	profits.	
The	deferred	tax	asset	not	recognised	in	these	financial	statements	on	the	estimated	losses	and	the	treatment	of	the	equity‑settled	
share‑based	payments,	net	of	any	other	temporary	timing	differences	is	detailed	in	note	18.	During	the	year,	the	parent	Company	
received	a	research	and	development	tax	credit	of	£1.5m	(2014:	£0.9m).	We	have	accrued	£1.3m	recognising	a	current	tax	asset	in	
respect	of	2015	research	and	development	tax	credits.
During	the	year,	there	was	a	reduction	in	the	rate	from	21%	to	20%	(effective	from	1	April	2015)	A	subsequent	change	was	
enacted	in	October	2015	to	reduce	the	corporation	tax	rate	to	18%.	Minimal	impact	is	expected	from	these	changes	given	the	
Group	is	loss	making.
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
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41
9. Loss per share
The	calculation	of	the	loss	per	share	is	based	on	the	loss	for	the	financial	year	after	taxation	of	£6.6m	(2014:	loss	£11.1m)	and	on	
the	weighted	average	of	64,023,900	(2014:	50,424,784)	ordinary	shares	in	issue	during	the	year.	
The	options	outstanding	at	31	December	2015	and	31	December	2014	are	considered	to	be	non‑dilutive	as	the	Group	is	
loss making.
10. Property, plant and equipment
Equipment	and	furniture
	 	 	 	 	 	 	 Group	 Company	
	 	 	 	 	 	 	 £000s	 £000s
Cost		
At	1	January	2014	 	 	 	 	 	 	 3,114	 9
Additions		 	 	 	 	 	 	 337	 15
Disposals		 	 	 	 	 	 	 (3)	 —
Translation	adjustment		 	 	 	 	 	 	 (193)	 —
At	31	December	2014	 	 	 	 	 	 	 3,255	 24
Additions		 	 	 	 	 	 	 843	 575
Disposals		 	 	 	 	 	 	 (25)	—
Translation	adjustment		 	 	 	 	 	 	 (187)	 —
At 31 December 2015							 3,886	 599
Accumulated depreciation 	
At	1	January	2014	 	 	 	 	 	 	 2,896	 3
Charge	for	the	year		 	 	 	 	 	 	 90	 3
Eliminated	on	disposal		 	 	 	 	 	 	 (3)	 —
Translation	adjustment		 	 	 	 	 	 	 (186)	 —
At	31	December	2014	 	 	 	 	 	 2,797	 6
Charge	for	the	year		 	 	 	 	 	 	 180	 42
Eliminated	on	disposal		 	 	 	 	 	 	 (25)	 —
Translation	adjustment		 	 	 	 	 	 (159)	 —
At 31 December 2015							 2,793 48
Net book value		
As	at	31	December	2014	 	 	 	 	 	 	 458	 18
As at 31 December 2015							 1,093	 551 www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
42
11. Goodwill
	 		 		 	 2015	 2014	
	 		 		 		 £000s	 £000s
Balance	at	start	of	year		 	 	 	 	 	 	 7,077	 7,549
Translation	adjustment	 	 	 	 	 	 		 (414)	 (472)
Balance at end of year 					 6,663	 7,077
The	carrying	amount	of	goodwill	is	attributable	to	the	acquisition	of	Silence	Therapeutics	GmbH	in	2005	and	forms	part	of	the	
Group’s	RNA	therapeutics	cash‑generating	unit	(CGU).	In	accordance	with	IAS	36:	Impairment	of	Assets,	the	carrying	value	of	
goodwill	has	been	assessed	comparing	its	carrying	value	to	its	recoverable	amount.
The	recoverable	amount	is	based	on	fair	value	less	costs	to	sell.	No	goodwill	impairment	was	identified.
Fair	value	less	costs	to	sell	of	the	RNA	therapeutics	CGU	has	been	determined	based	on	the	market	capitalisation	of	the	Group	
as	a	whole,	which	at	the	year	end	was	£117.0m,	less	the	Directors’	assessment	of	the	fair	value	associated	with	the	Group’s	other	
CGU,	which	the	Directors	believe	is	equal	to	its	net	assets.
The	Directors	consider	that	the	use	of	a	fair	value	less	costs	to	sell	model	based	on	market	prices	to	be	appropriate,	given	the	
simple	nature	of	the	business	and	the	fact	that	all	the	enterprise	value	in	the	business	resides	within	the	RNA	therapeutics	CGU.
Due	to	the	headroom	which	exists	between	the	recoverable	amount	and	the	carrying	value	there	is	currently	no	reasonable	
possible	change	in	the	determined	recoverable	amount	which	would	cause	the	CGU’s	carrying	value	to	exceed	its	
recoverable amount.
12. Other intangible assets
	 	 	 	 	 	 	 Internally	 	
	 	 	 	 	 	 	 generated	 	
	 	 	 	 	 	 Licences	 patents	 Total	
Group	 	 	 	 	 	 £000s	 £000s	 £000s
Cost	 		
At	1	January	2014	 	 	 	 	 	 2,301	 1,000	 3,301
Additions		 	 	 	 	 	 1	 —	 1
Translation	adjustment		 	 	 	 	 	 (143)	 (62)	 (205)
At	31	December	2014	 	 	 	 	 	 2,159	 938	 3,097
Additions	 	 	 	 	 	 6	 1	 7
Translation	adjustment	 	 	 	 	 	 (126)	 (55)	 (181)
At 31 December 2015      2,039 884 2,923
Accumulated amortisation 		
At	1	January	2014	 	 	 	 	 	 2,299	 751	 3,050
Charge	for	the	year		 	 	 	 	 	 1	 241	 242
Translation	adjustment		 	 	 	 	 	 (143)	 (54)	 (197)
At	31	December	2014	 	 	 	 	 	 2,157	 938	 3,095
Charge	for	the	year	 	 	 	 	 	 2	 —	 2
Translation	adjustment	 	 	 	 	 	 (126)	 (54)	 (180)
At 31 December 2015      2,033 884 2,917
Net book value		 	
As	at	31	December	2014	 	 	 	 	 	 2	 —	 2
As at 31 December 2015      6 — 6
The	intangible	assets	included	above	have	finite	useful	lives	estimated	to	be	of	10‑15	years	from	the	date	of	acquisition,	over	
which	period	they	are	amortised	or	written	down	if	they	are	considered	to	be	impaired.	Internally	generated	patent	costs	are	
only	recorded	where	they	are	expected	to	lead	directly	to	near	term	revenues.	These	costs	are	amortised	on	a	straight‑line	basis	
over	10‑15	years,	commencing	upon	the	completion	of	the	asset.	The	charge	for	amortisation	is	included	in	the	research	and	
development	costs	in	the	income	statement.
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
43
13. Investments in subsidiaries
	 		 		 		 2015	 2014	
Company	 	 	 	 	 	 	 £000	 £000s
Investment	in	subsidiary	undertakings		 	 	 	 	 	 22,511	 34,026
The	investment	in	subsidiary	undertakings	is	made	up	as	follows:
	 	 	 	 	 	 Investment	 Impairment	 Net	
	 	 	 	 	 	 at	cost	 provision	 total	
	 	 	 	 	 	 £000s	 £000s	 £000s
Shares and loans in subsidiary undertakings		 	
At	31	December	2013	 	 	 	 	 	 80,655	 (46,747)	 33,908
Addition	to	loan	 	 	 	 	 	 118	 —	 118
At	31	December	2014	 	 	 	 	 	 80,773	 (46,747)	 34,026
Movement	in	the	year	 	 	 	 	 	 2,785	 (14,300)	 (11,515)
At 31 December 2015      83,558 (61,047) 22,511
At	31	December	2015,	a	non‑interest	bearing	unsecured	loan	of	£22.4m	(2014:	£22.4m)	was	outstanding	from	Silence	
Therapeutics	plc	to	Silence	Therapeutics	(London)	Ltd	(formerly	Stanford	Rook	Ltd).	This	receivable	has	been	fully	provided	for.	
At	31	December	2015	an	impairment	of	£14.3m	was	made	against	the	holding	in	Silence	Therapeutics	GmbH.
Subsidiary companies
The	principal	activity	of	all	subsidiaries	is	the	research	and	development	of	pharmaceutical	products.	All	subsidiary	companies	are	
consolidated	in	the	Group’s	financial	statements:
	 	 	 	 	 Place	of	 	 Principal	 Proportion	of	
	 	 	 	 	 incorporation	 	 technology	 ownership	
Name		 	 	 	 	 and	operation	 	 area	 interest
Silence	Therapeutics	GmbH		 	 	 	 Germany	 	 RNA	therapeutics	 100%
Intradigm	Corporation		 	 	 	 	 US	 	 RNA	therapeutics	 100%
Silence	Therapeutics	(London)	Ltd	(formerly	Stanford	Rook	Ltd)		 	 England	 	 Immunotherapy	 100%
Innopeg	Ltd		 	 	 	 	 England	 	 Not	active	 100%
	 	 	 	 	 	 	 	 Exempt	from	
	 	 	 	 	 	 	 Exempt	 filing	financial	
Name		 	 	 	 	 	 	 from	audit	 statements
Silence	Therapeutics	GmbH		 	 	 	 	 	 No	 No
Intradigm	Corporation		 	 	 	 	 	 	 Yes	 Yes
Silence	Therapeutics	(London)	Ltd	(formerly	Stanford	Rook	Ltd)	 	 	 	 Yes	 No
Innopeg	Ltd		 	 	 	 	 	 	 Yes	 No
Silence	Therapeutics	plc	has	made	an	impairment	provision	against	the	investment	and	loans	to	Stanford	Rook	Ltd,	Innopeg	Ltd	
and	Intradigm	Corporation	to	the	extent	that	they	are	deemed	to	be	not	recoverable.	An	impairment	provision	of	£14.3m	has	been	
made	against	the	investment	in	Silence	Therapeutics	GmbH	as	the	Directors	have	reassessed	the	near	term	future	cash	flows	
between	Silence	Therapeutics	GmbH	and	the	Company,	and	using	a	probability	adjusted	value‑in‑use	basis	and	a	discount	rate	
of 10%,	have	determined	that	an	impairment	arises. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
44
14. Trade and other receivables
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Trade	receivables		 	 	 	 	 — —	—	—
Other	receivables	–	current	 	 	 	 	 179 110	 212	 124
Other	receivables	–	non‑current	 	 	 	 233 233	—	—
Research	and	development	tax	credit	receivable	 	 	 1,271 1,271	—	—
Prepayments		 	 	 	 	 191 151	 163	 101
Total	trade	and	other	receivables		 	 	 	 1,874 1,765	 375	 225
The	Directors	consider	that	the	carrying	amount	of	trade	and	other	receivables	approximates	to	their	fair	value.	Trade	and	other	
receivables	were	all	payable	within	90	days.	Fair	values	have	been	calculated	by	discounting	cash	flows	at	prevailing	interest	rates.
No	interest	is	charged	on	outstanding	receivables.
15. Other financial assets
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Other	financial	assets	 	 	 	 — —	 5,000	 5,000
At	the	end	of	2014	the	Company	had	£5.0m	on	deposit	with	Investec	Bank	plc.	The	deposit	was	returned	in	March	2015.	The	rate	
of	interest	on	this	deposit	was	linked	to	the	sterling:	euro	exchange	rate.	
16. Cash and cash equivalents
Cash	at	bank	comprises	balances	held	by	the	Group	in	current	and	short‑term	bank	deposits	with	a	maturity	of	three	months	or	
less.	The	carrying	amount	of	these	assets	approximates	to	their	fair	value.	In	2014	the	deposits	held	at	bank	are	treated	as	cash	
equivalents	under	the	definitions	of	IAS	7:	Cash	Flow	Statements.
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Cash	and	cash	equivalents	 	 	 	 	 51,907 47,822	 16,857	 15,761
17. Trade and other payables
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Trade	payables		 	 	 	 207 81	 540	 396
Social	security	and	other	taxes		 	 	 80 70	 118	 59
Accruals	and	other	payables		 	 	 	 831 663	 1,355	 578
	 				 1,118 814	 2,013	 1,033
Trade	payables	and	accruals	principally	comprise	amounts	outstanding	for	trade	purchases	and	continuing	costs.
The	Directors	consider	that	the	carrying	amount	of	trade	and	other	payables	approximates	to	their	fair	value.
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
45
18. Deferred tax
The	following	are	the	major	deferred	tax	liabilities	and	assets	recognised	by	the	Group:
	 		 		 		 2015	 2014	
	 		 		 	 £000s	 £000s
Deferred	tax	liability:	 	
–	in	respect	of	intangible	assets		 	 	 	 	 	 2	1
Less:	offset	of	deferred	tax	asset	below		 	 	 	 	 	 (2)	 (1)
Liability		 	 	 	 	 	 	 —	—
Deferred	tax	asset:	 	
–	in	respect	of	available	tax	losses		 	 	 	 	 	 13,912	 18,215
–	in	respect	of	share‑based	payments		 	 	 	 	 	 849	 865
Less:	offset	against	deferred	tax	liability		 	 	 	 	 	 (2)	 (1)
	 						 14,759	 19,079
–	provision	against	asset	 	 	 	 	 	 		 (14,759)	 (19,079)
Asset		 	 	 	 	 	 	 —	—
Deferred	tax	is	calculated	at	a	weighted	average	rate	of	21.19%	using	the	average	UK	and	German	tax	rates.
Due	to	the	uncertainty	of	future	profits,	a	deferred	tax	asset	was	not	recognised	at	31	December	2015	(2014:	nil).
19. Share capital 
	 		 		 		 2015	 2014	
	 		 		 	 £000s	 £000s
Allotted,	called	up	and	fully	paid	 	
69,801,624	(2014:	52,098,109)	ordinary	shares	par	value	5p	 	 	 	 3,490	 2,605
The	Group	has	only	one	class	of	share.	All	ordinary	shares	have	equal	voting	rights	and	rank	pari	passu	for	the	distribution	
of dividends.
Details	of	the	shares	issued	by	the	Company	during	the	current	and	previous	years	are	as	follows:
	 		 		 		 	Number
Number	of	shares	in	issue	at	1	January	2014	 	 	 	 	 	 47,061,554
Shares	issued	during	2014:	
–	issue	of	shares	(equity	placing)	at	230p	 	 	 	 	 	 		 4,938,555
Options	exercised	at	90p		 	 	 	 	 	 	 	 98,000
Total	issued	in	year		 	 	 	 	 	 	 	 5,036,555
Number	of	shares	in	issue	at	31	December	2014	 	 	 	 	 	 52,098,109
Shares	issued	during	2015:	
–	issue	of	shares	(equity	placing)	at	240p	 	 	 	 	 	 		 16,666,667
Options	exercised	at	25p	 	 	 	 	 	 	 		 1,036,848
Total	issued	in	year		 	 	 	 	 	 	 	 17,703,515
Number of shares in issue at 31 December 2015      69,801,624
The	Group	has	also	granted	options	to	certain	Directors	and	employees	under	an	Enterprise	Management	Incentive	Scheme	and	
by	individual	contract. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
46
19. Share capital continued
At	31	December	2015	there	were	options	outstanding	over	3,755,015	(2014:	4,711,703)	unissued	ordinary	shares.
Details	of	the	options	outstanding	are	as	follows:
Exercisable	from	 	 	 	 	 Exercisable	until	 Number	 Exercise	price
Any	time	until	 	 	 	 	 26	July	2016	 	10,645		 £6.38
Any	time	until	 	 	 	 	 24	November	2016	 8,000		 £21.50
Any	time	until	 	 	 	 	 14	December	2017	 	200		 £54.50
Any	time	until	 	 	 	 	 5	December	2018	 	200		 £54.50
Any	time	until	 	 	 	 	 26	July	2017	 	10,000		 £63.50
Any	time	until	 	 	 	 	 14	December	2017	 1,098		 £33.88
Any	time	until	 	 	 	 	 7	May	2018	 	399		 £20.75
Any	time	until	 	 	 	 	 25	September	2018	 4,300		 £14.75
Any	time	until	 	 	 	 	 5	December	2018	 	30,452		 £10.00
Any	time	until	 	 	 	 	 5	January	2020	 9,999		 £10.61
Any	time	until	 	 	 	 	 27	July	2024	 	190,000		 £0.25
Any	time	until	 	 	 	 	 31	July	2024	 	1,728,078		 £0.25
Any	time	until	 	 	 	 	 31	December	2024	 	80,000		 £1.25
26	June	2016	 	 	 	 	 31	December	2018	 	65,288		 £1.25
26	June	2016	 	 	 	 	 26	June	2026	 	949,136		 £1.25
1	July	2016	 	 	 	 	 1	July	2026	 	23,103		 £1.85
15	July	2016	 	 	 	 	 15	July	2026	 	19,919		 £2.17
12	August	2016	 	 	 	 	 12	August	2026	 	36,014		 £2.03
1	October	2016	 	 	 	 	 1	October	2026	 	10,182		 £2.75
14	October	2016	 	 	 	 	 14	October	2026	 	20,663		 £2.42
4	November	2016	 	 	 	 	 4	November	2026	 	31,250		 £2.40
20	November	2016	 	 	 	 	 20	November	2026	 	40,000		 £2.82
1	December	2016	 	 	 	 	 1	December	2026	 	26,186		 £2.06
13	January	2017	 	 	 	 	 13	January	2029	 	21,645		 £2.17
4	June	2017	 	 	 	 	 31	December	2016	 	20,000		 £1.25
16	June	2017	 	 	 	 	 16	June	2029	 	42,857		 £2.10
1	July	2017	 	 	 	 	 1	July	2029	 	21,474		 £2.20
1	September	2017	 	 	 	 	 1	September	2029	 	17,153		 £2.10
15	November	2017	 	 	 	 	 15	November	2029	 	11,752		 £2.01
24	November	2017	 	 	 	 	 24	November	2029	 	20,000		 £2.00
1	December	2017	 	 	 	 	 1	December	2029	 	11,038		 £2.14
1	January	2018	 	 	 	 	 1	January	2030	 	70,029		 £2.06
8	January	2018	 	 	 	 	 8	January	2030	 	153,000		 £2.05
23	February	2018	 	 	 	 	 23	February	2030	 	22,913		 £2.55
6	July	2018	 	 	 	 	 6	July	2030	 	19,358		 £2.93
19	October	2018	 	 	 	 	 19	October	2030	 	16,667		 £2.10
16	November	2018	 	 	 	 	 16	November	2030	 	12,017		 £1.76
Total options outstanding       3,755,015  
The	market	price	of	Company	shares	at	the	year	end	was	163.0p	(2014:	206.0p).	During	the	year	the	minimum	and	maximum	
prices	were	160.0p	and	335.0p	respectively	(2014:	179.0p	and	375.0p).
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
47
20. Equity-settled share-based payments
The	Company	has	a	share	option	scheme	open	to	all	employees	of	the	Group.	Options	are	exercisable	at	a	price	equal	to	the	
market	price	of	the	Company’s	shares	on	the	date	of	grant	(certain	option	have	been	granted	in	the	past	at	lower	prices).	Under	
the	scheme,	the	options	vest	at	dates	set	by	the	Company	at	the	time	the	option	is	granted.	The	options	lapse	after	one	year	
following	the	employee	leaving	the	Group.
	 2015	 2014
	
	 		 		 	 Weighted	 	 Weighted	
	 		 		 average	 	 average	
	 		 		 	 exercise price	 	 exercise	price	
	 		 		Number p 	 Number	 p
Options	 			
Outstanding	at	the	beginning	of	the	year		 		 	 4,711,703  104.99 	 4,811,651	 102.36
Granted	during	the	year		 		 	 	 	 293,984   214.03 	 366,089	 205.81
Lapsed	during	the	year		 	 	 	 (213,824)   286.50 	 (368,037)	 167.81
Exercised	during	the	year		 	 	 	 (1,036,848)   25.00 	 (98,000)	 90.00
Outstanding	at	the	year	end		 	 	  3,755,015   96.26		 4,711,703	 104.99
Exercisable	at	the	year	end				 	 	  2,073,371   125.28 	 3,050,419	 78.54
The	options	outstanding	at	the	year	end	have	a	weighted	average	remaining	contractual	life	of	9.6	years	(2014:	10.3	years).	
The	Group	granted	293,984	options	during	the	year	(2014:	366,089).	The	fair	value	of	options	granted	were	calculated	using	a	
binomial	model	and	inputs	into	the	model	were	as	follows:
Inputs	and	assumptions	for	options	granted	in	the	year	 	 	 	 	 2015	 2014
Weighted	average	fair	value	at	grant	(p)	 	 	 	 	 	 174.8	 160.4
Weighted	average	share	price	(p)	 	 	 	 	 	 214.0	 205.8
Expected	volatility	 	 	 	 	 	 	 91%‑95%	 89%‑99%
Risk‑free	rate	 	 	 	 	 	 1.56%‑1.99%	 1.56%‑2.70%
Hurdle	price	(p)	 	 	 	 	 	 400.0	 400.0
Expected	dividend	yield	 	 	 	 	 	 	 nil	 nil
The	Group	recognised	total	charges	of	£777k	(2014:	£1.1m)	related	to	equity‑settled	share‑based	payment	transactions	during	
the year. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
48
21. Capital reserves
	 	 	 	 Share	 	 Share‑based	 Capital	 	
	 	 	 	 premium	 Merger	 payment	 redemption	 	
	 	 	 	 account	 reserve	 reserve	 reserve	 Total	
Group 	 	 	 	 £000s	 £000s	 £000s	 £000s	 £000s
At	1	January	2014	 	 	 	 84,057	 22,248	 2,979	 5,194	 114,478
On	shares	issued	in	the	year:		 	 	 11,112	 —	 —	 —	 11,112
–	less	cost	of	shares	issued		 	 	 (604)	 —	 —	 —	 (604)
On	options	in	issue	during	the	year		 	 	 —	 —	 1,127	 —	 1,127
On	options	exercised	during	the	year		 	 	 84	 —	 —	 —	 84
Movement	in	the	year	 	 	 	 10,592	 —	 1,127	 —	 11,719
At	31	December	2014	 	 	 	 94,649	 22,248	 4,106	 5,194	 126,197
On	shares	issued	in	the	year:		 	 	 	39,167		 —	 —	 —	 	39,167	
–	less	cost	of	shares	issued		 	 	 	(1,106)		 —	 —	 —	 	(1,106)	
On	options	in	issue	during	the	year		 	 	 —		 —	 777		 —	 	777	
On	vested	options	lapsed	during	the	year	 	 		 —	 —	 (168)	 —	 (168)
On	options	exercised	during	the	year		 	 	 	207		 —	 —	 —	 	207	
Movement	in	the	year	 		 	 	 38,268		 —	 	609	 —	 	38,877	
At 31 December 2015     132,917  22,248  4,715   5,194   165,074 
	 	 	 	 Share	 	 Share‑based	 Capital	 	
	 	 	 	 premium	 Merger	 payment	 redemption	 	
	 	 	 	 account	 reserve	 reserve	 reserve	 Total	
Company		 	 	 	 £000s	 £000s	 £000s	 £000s	 £000s
At	1	January	2014	 	 	 	 84,057	 22,064	 2,979	 5,194	 114,294
On	shares	issued	in	the	year:		 	 	 11,112	 —	 —	 —	 11,112
–	less	cost	of	shares	issued		 	 	 (604)	 —	 —	 —	 (604)
On	options	in	issue	during	the	year		 	 	 —	 —	 1,127	 —	 1,127
On	options	exercised	during	the	year		 	 	 84	 —	 —	 —	 84
Movement	in	the	year	 	 	 	 10,592	 —	 1,127	 —	 11,719
At	31	December	2014	 	 	 	 94,649	 22,064	 4,106	 5,194	 126,013
On	shares	issued	in	the	year:		 	 	 	39,167		 —	 —	 —	 	39,167	
–	less	cost	of	shares	issued		 	 	 	(1,106)		 —	 —	 —	 	(1,106)	
On	options	in	issue	during	the	year		 	 	 —		 —	 	777		 —	 	777	
On	vested	options	lapsed	during	the	year	 	 		 —	 —	 (168)	 —	 (168)
On	options	exercised	during	the	year		 	 	 207	 —	 —	 —	 207
Movement	in	the	year	 		 	 	 38,268		 —	 	609	 —	 	38,877	
At 31 December 2015     132,917  22,064  4,715   5,194   164,890 
The	capital	redemption	reserve	was	created	in	2012	following	the	reduction	of	nominal	share	capital	to	0.1p	per	share.	It	is	
required	under	Section	733	of	the	Companies	Act	2006,	held	to	maintain	the	capital	of	the	Company	when	shares	are	bought	back	
and	subsequently	cancelled	without	court	approval.
Due	to	the	size	of	the	deficit	on	the	profit	and	loss	account,	the	Company	has	no	distributable	reserves.
The	share	premium	account	reflects	the	premium	to	nominal	value	paid	on	issuing	shares	less	costs	related	to	the	issue.	
The	merger	reserve	was	created	on	issuance	of	shares	relating	to	the	acquisition	of	Silence	Therapeutics	GmbH.
The	share‑based	payments	reserve	reflects	the	cost	to	issue	share‑based	compensation,	primarily	employee	share	options.
In	2014	the	consolidated	statement	of	comprehensive	income	included	a	gain	arising	on	exchange	differences	of	£701,000	as	
opposed	to	a	loss	of	£701,000	reported	in	consolidated	statement	of	changes	in	equity.	The	comparative	has	therefore	been	
revised	to	show	a	loss	of	£701,000;	with	the	resultant	total	comprehensive	expense	for	the	year	to	31	December	2014	revised	to	
£11,789,000.	This	has	no	impact	on	the	loss	for	the	year	to	31	December	2014	or	net	assets.
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
49
22. Capital commitments and contingent liabilities
There	were	no	capital	commitments	or	contingent	liabilities	at	31	December	2015	(2014:	nil).
23. Commitments under operating leases
At	31	December	2015	the	Group	and	Company	had	a	gross	commitment	on	its	office	rental	and	service	charge	at	
72 Hammersmith	Road,	London	equal	to	£0.1m	(2014:	£0.2m)	in	the	next	year.
£1.0m	(2014:	nil)	is	payable	between	one	to	five	years.	No	amounts	are	payable	after	more	than	five	years.
24. Financial instruments and risk management
The	Group’s	financial	instruments	comprise	primarily	cash	and	other	financial	assets	and	various	items	such	as	trade	receivables	
and	trade	payables	which	arise	directly	from	its	operations.	The	main	purpose	of	these	financial	instruments	is	to	provide	working	
capital	for	the	Group’s	operations.	The	Group	assesses	counterparty	risk	on	a	regular	basis.	Board	approval	is	required	for	
adoption	of	any	new	financial	instrument	or	counterparty.	The	primary	focus	of	the	treasury	function	is	preservation	of	capital.	
The Directors	consider	that	the	carrying	amount	of	these	financial	instruments	approximates	to	their	fair	value.
Financial assets by category
The	categories	of	financial	assets	(as	defined	by	IAS	39:	Financial	Instruments:	Recognition	and	Measurement)	included	in	the	
balance	sheet	and	the	heading	in	which	they	are	included	are	as	follows:
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Loans and receivables 			
Trade	and	other	receivables		 	 	 	 412 343 	 375	 225
Other	financial	assets	 	 	 	 	 —  —	 5,000	 5,000
Cash	and	cash	equivalents	 	 	 	 	 51,907  47,822 	 16,857	 15,761
All	amounts	are	short	term	other	than	£233k	which	is	due	after	1	year	(2014:	nil)	and	none	are	past	due	dates	at	the	reporting	date.
Financial liabilities by category
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Other financial liabilities at amortised cost    
Trade	and	other	payables	 	 	 	 	 1,038	 744	 2,013	 1,033
All	amounts	are	short	term	and	payable	in	zero	to	three	months.
The	maximum	exposure	to	credit	risk	at	the	reporting	date	by	class	of	financial	asset	was:
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Loans	and	receivables		 	 	 	 1,641  1,532 	 375	 225
Cash	and	cash	equivalents	are	not	considered	to	be	exposed	to	credit	risk	due	to	the	fact	it	sits	within	the	bank.	The	Group	
considers	the	possibility	of	significant	loss	in	the	event	of	non‑performance	by	a	financial	counterparty	to	be	unlikely.
Capital management
The	Group	considers	its	capital	to	be	equal	to	the	sum	of	its	total	equity.	The	Group	monitors	its	capital	using	a	number	of	
key	performance	indicators	including	cash	flow	projections,	working	capital	ratios,	the	cost	to	achieve	preclinical	and	clinical	
milestones	and	potential	revenue	from	existing	partnerships	and	ongoing	licensing	activities.	The	Group’s	objective	when	
managing	its	capital	is	to	ensure	it	obtains	sufficient	funding	for	continuing	as	a	going	concern.	The	Group	funds	its	capital	
requirements	through	the	issue	of	new	shares	to	investors,	milestone	and	research	support	payments	received	from	existing	
licensing	partners	and	potential	new	licensees. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
50
24. Financial instruments and risk management continued
Interest rate risk
The	nature	of	the	Group’s	activities	and	the	basis	of	funding	are	such	that	the	Group	has	significant	liquid	resources.	The	Group	
uses	these	resources	to	meet	the	cost	of	future	research	and	development	activities.	Consequently,	it	seeks	to	minimise	risk	in	the	
holding	of	its	bank	deposits	while	maintaining	a	reasonable	rate	of	interest.	The	Group	is	not	financially	dependent	on	the	income	
earned	on	these	resources	and	therefore	the	risk	of	interest	rate	fluctuations	is	not	significant	to	the	business.	Nonetheless,	the	
Directors	take	steps	to	secure	rates	of	interest	which	generate	a	return	for	the	Group	by	depositing	sums	which	are	not	required	
to	meet	the	immediate	needs	of	the	Group	in	interest‑bearing	deposits.	Other	balances	are	held	in	interest‑bearing,	instant	access	
accounts.	All	deposits	are	placed	with	main	clearing	banks	to	restrict	both	credit	risk	and	liquidity	risk.	The	deposits	are	placed	for	
the	short	term,	between	one	and	twelve	months,	to	provide	flexibility	and	access	to	the	funds	and	to	avoid	locking	into	potentially	
unattractive	interest	rates.
Credit and liquidity risk
Credit	risk	is	managed	on	a	Group	basis.	Funds	are	deposited	with	financial	institutions	with	a	credit	rating	equivalent	to,	or	above,	
the	main	UK	clearing	banks.	The	Group’s	liquid	resources	are	invested	having	regard	to	the	timing	of	payments	to	be	made	in	
the	ordinary	course	of	the	Group’s	activities.	All	financial	liabilities	are	payable	in	the	short	term	(between	zero	and	three	months)	
and	the	Group	maintains	adequate	bank	balances	in	either	instant	access	or	short‑term	deposits	to	meet	those	liabilities	as	they	
fall due.
Currency risk
The	Group	operates	in	a	global	market	with	income	possibly	arising	in	a	number	of	different	currencies,	principally	in	sterling	or	
euros.	The	majority	of	the	operating	costs	are	incurred	in	euros	with	the	rest	predominantly	in	sterling.	The	Group	does	not	hedge	
potential	future	income	since	the	existence,	quantum	and	timing	of	such	income	cannot	be	accurately	predicted.
Financial	assets	and	liabilities	denominated	in	euros	and	translated	into	sterling	at	the	closing	rate	were:
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Financial	assets		 	 	 	 	 10,748  6,650	 1,246	 —
Financial	liabilities		 	 	 	 	 (305)  —	 (556)	 —
Net	financial	assets		 	 	 	 10,443  6,650	 690	 —
Financial	assets	and	liabilities	denominated	in	US	dollars	and	translated	into	sterling	at	the	closing	rate	were:
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Financial	assets		 	 	 	 2 —	 2	 —
Financial	liabilities		 	 	 	 	 — —	 (424)	 —
Net	financial	assets/(liabilities)		 	 	 	 2 —	 (422)	 —
The	following	table	illustrates	the	sensitivity	of	the	net	result	for	the	year	and	the	reported	financial	assets	of	the	Group	in	regards	
to	the	exchange	rate	for	sterling:	euro.
Notes to the financial statements continued
year ended 31 December 2015 www.silence-therapeutics.com
Corporate governance Financial statements Strategic report
Silence Therapeutics plc  
Annual report and financial statements 2015
51
During	the	year	sterling	appreciated	by	6%	versus	the	euro.	The	table	shows	the	impact	of	an	additional	strengthening	or	falling	of	
sterling	against	the	euro	by	20%.
       If sterling If sterling 
      As reported rose 20% fell 20% 
2015      £000s £000s £000s
Group	result	for	the	year		 	 	 	 	 	 (6,645) (5,898) (7,542)
Euro	denominated	net	financial	liabilities		 	 	 	 	 3,893 3,245 4,672
Total	equity	at	31	December	2015	 	 	 	 	 60,427 58,577 62,647
	 	 	 	 	 	 	 If	sterling	 If	sterling	
	 	 	 	 	 	 As	reported	 rose	20%	 fell	20%	
2014	 	 	 	 	 	 £000s	 £000s	 £000s
Group	result	for	the	year		 	 	 	 	 	 (11,088)	 (10,177)	 (12,456)
Euro	denominated	net	financial	liabilities	 	 	 	 		 690	 575	 863
Total	equity	at	31	December	2014	 	 	 	 	 27,758	 26,460	 29,703
The	Group	no	longer	has	a	material	operating	exposure	to	the	US	dollar.
No	amounts	are	included	in	the	balance	sheet	at	fair	value,	and	therefore	no	fair	value	hierarchy	is	included.	
25. Related party transactions
The	Company	and	Group	had	transactions	during	the	year	and	balances	at	the	year	end	with	the	following	organisations	which	are	
considered	to	be	related	parties:
	 2015	 2014
	
	 		 		 Group Company	 Group	 Company	
	 		 		 £000s £000s	 £000s	 £000s
Silence Therapeutics GmbH
Expenses	charge	for	services		 	 	 	 — 4,454 	 —	 5,222
Balance	due	at	31	December	2015,	prior	to	provision	 	 	 —  13,552	 —	 10,775
Pharmalogos Limited
Expenses	charge	for	services		 	 	 	 20 20  120	 120
Balance	owed	at	31	December	2015		 	 	 	 — — 	 —	 —
Pharmalogos	Limited,	a	company	controlled	by	Dr	Stella	Khan,	wife	of	Dr	Michael	Khan,	supplies	research	services	to	Silence	
Therapeutics	plc	at	an	agreed	price	of	£120,000	per	annum.	Notice	was	given	to	cease	Pharmalogos	services	in	September	2014,	
with	effect	from	February	2015.
26. Subsequent events
The	Company	is	entitled	to	15%	of	all	revenues	derived	by	Quark	Pharmaceuticals	Inc.	(“Quark”)	from	Novartis	before	patent	
expiry	in	2023.	In	March	2016	the	Company	went	into	formal	arbitration	with	Quark	in	respect	of	$3m	the	Company	is	due	
following	$20m	that	was	paid	by	Novartis	to	Quark	in	2015. www.silence-therapeutics.com
Silence Therapeutics plc  
Annual report and financial statements 2015
52
Secretary
Timothy	Freeborn	
Registered office
27‑28	Eastcastle	Street	
London	W1W	8DH
Registered number 
02992058
Nominated adviser and joint broker
Canaccord Genuity Limited
88	Wood	Street	
London	EC2V	7QR
Joint broker
Peel Hunt LLP
Moor	House		
120	London	Wall	
London	EC2Y	5ET
Registrar
Capita IRG plc
Northern	House	
Woodsome	Park	
Fenay	Bridge	
Huddersfield	HD8	0LA
Independent auditor
PricewaterhouseCoopers LLP
Chartered	Accountants	and	Statutory Auditors	
Abacus	House		
Castle	Park		
Cambridge	CB3	0AN
Legal adviser
Covington & Burling LLP
265	Strand	
London	WC2R	1BH
AKI	 	 Acute	kidney	injury
AtuRNAi
®
 Proprietary	siRNA	modification	pattern
Atu027 	 	 Our	proprietary	cancer	
product candidate
CRISPR/Cas9	 	 Clustered	regularly	interspaced	short	
palindromic	repeats/protein‑9 nuclease
DACC	 	 	 Proprietary	lung	targeted	RNA	
delivery system
DGF	 	 Delayed	graft	function
EMA	 	 European	Medicines	Agency
FDA 	 	 Food	and	Drug	Administration
GalNAc	 	 N‑Acetylgalactosamine
liposomal Encapsulated	in	a	lipid	nanoparticle
mRNA	 	 Messenger	RNA
NHP	 	 Non‑human	primates
OS	 	 Overall	survival
PAH	 	 Pulmonary	arterial	hypertension
PFS	 	 Progression	free	survival
PKN3	 	 Protein	kinase	N3
RNA	 	 Ribonucleic	acid
RVSP	 	 Right	ventrical	systolic	pressure
siRNA	 	 Short	interfering	RNA
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Silence Therapeutics plc Annual report and financial statements 2015