Interim Results for the six months ended 31 December 2023
York, U.K – 14 March 2024: Abingdon Health plc (AIM: ABDX), a leading international lateral flow contract development and manufacturing organisation (CDMO), announces its unaudited interim results for the six months ended 31 December 2023.
Operational Highlights (including post-period):
· Continued growth of contract service activities with a number of projects moving through into technical transfer for manufacture; and the Company’s full-service offering resonating well with customers across a range of industries.
· Strong revenue growth across all aspects of Abingdon’s fully integrated CDMO solution, including contract development; technical transfer; manufacturing; and regulatory and commercial support.
· The Company’s opportunity pipeline remains robust with 3 new CDMO projects signed up post 31 December 2023 bringing the total to 29 live CDMO projects; and the Board is confident, based on the customer base and pipeline, that Abingdon’s lateral flow CDMO proposition will continue to yield further contract service opportunities over the course of 2024 and beyond.
· The Company’s product revenue growth will be supported in H2 2024 with the launch of a number of retailer own label self-test products with purchase orders in place and being delivered in H2 2024.
Financial Highlights:
· Revenue of £2.4m for H1 2024 (H1 2023: £1.1m), representing a more than doubling of like-for-like revenue with a growth rate of 117% compared with H1 2023.
§ Lateral Flow CDMO revenues accounted for £2.2m (H1 2023: £0.9m) which represented a growth rate of 136% compared with H1 2023.
§ Lateral Flow Products revenues accounted for the balance of £0.2m (H1 2023: £0.2m).
· Gross profit of £1.3m for H1 2024 (H1 2023: £0.3m).
§ As a result, gross margins have increased in the period to 53.0% (H1 2023: 25.9%).
§ This is a result of improved utilisation of our operational team through increased manufacturing volumes being delivered in H1 2024 compared with H1 2023.
· Against this backdrop of revenue growth, operating costs remain stable at £2.7m for H1 2024; compared with both H1 2023 and H2 2023.
· Reduction in Adjusted1 EBITDA loss of 47% in H1 2024 to £(1.2)m (H1 2023: Adjusted2 EBITDA loss of £(2.2)m).
· Reduction in operating loss of 50% to £(1.2)m (H1 2023: £(2.4)m); with H2 2024 revenue growth and further cost savings anticipated to drive continued improvement in profit performance and cashflow.
1 adjusted for amortization, depreciation, share based payment expense and non-recurring redundancy cost and impairment reversals/(charges).
2 adjusted for amortization, depreciation, share based payment expense, non-recurring redundancy costs and professional fees as well as adjustments relating to IFRS16.
Current Trading & Outlook
· Trading in the first two months of H2 2024 has been robust.
· The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024. As a result, FY 2024 revenues are expected to be materially higher than FY 2023 revenues of £4.0m.
· The primary objective of the Board remains to move the Company to a breakeven and cash flow positive position which it forecasts will be achieved in 2024 without the need for additional funding.
Chris Yates, CEO at Abingdon Health plc, commented:
“We are pleased with H1 2024 revenue growth of 117% and look forward to building on this in H2 2024. We are encouraged by the growth Abingdon’s dedicated lateral flow CDMO service continues to generate with our international customer base and we are pleased to have onboarded a number of new customers since the end of H1 2024. Our strategy remains on building our capabilities to support our customers in all the areas required to bring their lateral flow project from “idea to commercial success.” Our full-service offering is resonating well with customers that want to benefit from the cost and time efficiencies this integrated service provides.”
“Our focus is to continue to grow our commercial pipeline, increase revenues, pro-actively manage costs, to achieve profitability and generate positive cashflow. All of our activities are now geared towards these near-term objectives. I would like to thank the Abingdon team for their hard work, expertise, dedication and their full focus on going that extra mile to deliver for our customers. They are a credit to the Company and their efforts are greatly appreciated by me and the rest of the Board. I would like to thank shareholders for their continued support and I look forward to updating further on progress as we move through 2024.”
For further information, please contact:
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Abingdon Health plc |
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Chris Yates, Chief Executive Officer |
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Chris Hand, Non-Executive Chairman |
