Abingdon Health PLC (AIM:ABDX) Annual Revenue Growth of 52%, Cashflow Positive in Q4

The board anticipates continued solid revenue growth in FY 2025

 York, U.K. 9 July 2024: Abingdon Health plc (AIM: ABDX, ‘Abingdon’, ‘the Company’), a leading international lateral flow contract development and manufacturing organisation (CDMO), provides its trading update for the twelve-months-ended 30 June 2024.

Highlights

·    Strong commercial progress across the Group. FY 2024 unaudited revenues will be circa £6.1m, 52% ahead of FY 2023. Excluding the revenue impact of the IVDeology acquisition, revenues will be circa £6.0m, 49% ahead of FY 2023.

·    H2 FY 2024 showed revenue growth of 55% compared to H1 FY 2024 and 27% compared to H2 FY 2023.

·    Cash balance of £1.3m at 30 June 2024 (31 December 2023: £2.0m) with Q4 2024 being cashflow positive.

·    Strong revenue growth from a diverse range of CDMO customers across all aspects of our fully integrated CDMO solution, including contract development; technical transfer; manufacturing; and regulatory, quality assurance and commercial support.

·    Good progress in Abingdon Products division in H2 2024 including launch of 3 Boots own-label tests: Vitamin D, Iron (Ferritin) and Saliva Pregnancy.

·    Acquisition of regulatory consultancy IVDeology for share consideration in May 2024 to strengthen Abingdon’s regulatory service capabilities.

·    The Board anticipates continued strong revenue growth in FY 2025 and will provide further detail as we progress through the financial year.

Contract services

The Company’s CDMO business has seen good revenue traction year-on-year with revenue of £5.5m in FY 2024, circa 51% ahead of FY 2023 (£3.6m). Abingdon’s CDMO proposition is resonating well with customers across a range of sectors including self-test and point-of-care clinical testing, animal health, plant health and environmental testing. It is particularly pleasing to provide customers with an end-to-end service across a range of activities including contract development, technical transfer and scale-up, and commercial support.  Abingdon’s regulatory expertise is providing additional services to customers in the increasingly complex area of regulatory approval with, for example, EU in vitro diagnostics regulation (IVDR), US FDA approval, UK-Conformity Assessment (UK-CA).

The Board was pleased to support its CDMO customer, Salignostics Ltd, in securing retail distribution opportunities in the UK, including at Boots, where their innovative saliva-based pregnancy test is being rolled out across 1,300 Boots stores nationwide and online at boots.com.

A number of customers’ products were transferred into manufacturing during the year, including Salignostics, LoopDx (sepsis, point-of-care test) and Up Front Diagnostics (stroke, point-of-care test); and the Company looks forward to supporting them, and our existing manufacturing customers, going forward as these innovative products achieve further regulatory approvals and market penetration.

The Company strengthened its regulatory service capabilities in May 2024 with the acquisition, for up to £700,000, of IVDeology. IVDeology’s service capabilities include Quality Management System build, technical file build, auditing and regulatory filing support (FDA, IVDR, CE-marking and UKCA-marking). The acquisition is complementary to Abingdon’s existing regulatory service capabilities and provides the Company with strength in depth to support its customers in a regulatory environment undergoing significant change.

Abingdon Products

Abingdon Products achieved revenue of £0.7m in FY 2024, up 56% compared to £0.4m in FY2023. As anticipated at the time of the interim accounts for the six months ended 31 December 2023, the second half saw a stronger performance with revenues in H2 FY 2024 176% ahead of H1 FY 2024. The main driver was the launch in H2 FY 2024 of three lateral flow self-tests under Boots’ own-label, Vitamin D, Iron (Ferritin) and Saliva Pregnancy. 

The Company continues to focus on further opportunities, both in the UK and Europe, to promote own-label solutions to major retailers. In addition, the Abingdon Simply Test® range of self-test products, launched online in July 2022, continues to build and the Company’s product range now consist of 16 self-tests. The Company will continue to explore opportunities to build routes to market in the UK, Ireland and Europe. 

Financial update

Unaudited revenues for FY 2024 were £6.1m (FY2023: £4.0m) and revenues in the second half of the financial year were 55% ahead of H1 FY 2024.  Cash as of 30 June 2024 was £1.3m (31 December 2023: £2.0m).

Cash-burn reduced in H2 2024 compared to H1 2024; and in Q4 2024 cash flow was positive.

The Board anticipates that continued solid revenue growth in FY 2025, along with close management of the Group’s operational cost base, will further drive operational profitability improvements. 

Chris Yates, CEO of Abingdon Health plc, commented:

“We are pleased to report another year of growing revenue performance with FY 2024 revenues 52% ahead of FY 2023. We were particularly pleased to achieve positive cashflow in Q4 2024. Our key focus is to build a focused, high quality, sustainable, profitable business and we are making great strides towards this.  We believe with our lateral flow focus, our comprehensive CDMO service proposition and growing self-test distribution platform that we are well placed to deliver further revenue growth in FY 2025 and beyond”.

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