TIDMABDX
RNS Number : 2055R
Abingdon Health PLC
28 February 2023
Abingdon Health plc
("Abingdon Health" or "the Company")
Trading Update
York, U.K. 28 February 2023: Abingdon Health plc (AIM: ABDX), a
leading international lateral flow contract development and
manufacturing organisation (CDMO), provides its half-year trading
update for the six months ended 31 December 2022.
Highlights
-- The Company has successfully transitioned its activities away
from COVID-19 and is now operating as a fully integrated CDMO
maintaining its full focus on lateral flow testing.
-- Strong revenue traction from a diverse range of customers
across all aspects of Abingdon's fully integrated CDMO solution,
including contract development; technical transfer; manufacturing;
and regulatory, quality assurance and commercial support.
-- Following Company restructuring and right-sizing, the
commercial operations are now benefitting from improved activity
with a significant increase in the number of contracts signed
across R&D, technical transfer and regulatory support.
-- Revenue of GBP1.1m for the 6 months to December 2022 (H1
2021: GBP1.7m) expected to be significantly improved in H2 2023 and
FY 2023 revenues are expected to be materially higher than FY 2022
revenues of GBP2.8m.
-- The Company is currently working with a number of new
customers across 11 different contract service projects in multiple
areas (vs 3 as at 1 July 2022).
-- At 31 December 2022, the Company had GBP4.4m cash. Current
cash is in line with the Board's expectations. The primary
objective of the Board is to move the Company to a breakeven and
cash flow positive position which it forecasts will be achieved in
FY 2024.
-- The Company's opportunity pipeline is currently robust and
the Board believes Abingdon's lateral flow CDMO proposition will
continue to yield further contract service opportunities over the
course of 2023 and beyond.
Contract services
In December 2022, Abingdon commenced an additional two new
technical transfer projects, three new R&D projects, and two
new regulatory projects. In addition, the pipeline of commercial
opportunities remains robust, and the Board strongly believe the
Company's CDMO proposition will continue to yield further contract
service opportunities over the course of the calendar year. All of
the commercial opportunities currently being worked on are in
non-COVID-19 sectors and the business has been successfully
transitioned during the second half of calendar 2022 towards what
the Directors believe is a much more sustainable long-term business
model. Abingdon's automated Yorkshire-based manufacturing
facilities are ideally placed to provide scale as the Company moves
products through development, technical transfer and into routine
production. The Directors' believe the lateral flow market will
grow significantly across a range of sectors, including clinical
testing, animal health, plant health and environmental testing, as
the benefits of self-testing - highlighted by COVID-19 - are
extended into a range of other applications.
Abingdon Simply Test
The Abingdon Simply Test range of self-test products was
launched online in July 2022. The product range has recently
expanded to include a Strep A test and a Flu/Covid combination
test. Abingdon is also in the process of broadening the
distribution of its self-tests into other channels with the range
launched in a major pharmacy chain in Ireland in February 2023.
Further distribution channels have been established in H1 2023,
including a number of country-specific distribution agreements. The
Company is aiming to add additional self-tests, including those
developed through its contract service activities, over the rest of
FY 2023. Abingdon anticipates launching one of its CDMO customers'
tests, the Salignostics Salistick(TM) saliva pregnancy test, on the
Abingdon Simply Test site, in due course and the Directors believe
that offering a route to market for self-tests for the Company's
contract services customers is another 'added-value' service.
Financial update
Revenues for H1 2022/3 were GBP1.1m (H1 2021/2: GBP1.7m). The
Company started the second half of the financial year strongly as
new contracts have started to generate revenues, and anticipates a
significantly improved second half of the financial year. As at 1
July 2022 the Company had three live contract service contracts and
by 28 February 2023 this had expanded to eleven with a number of
additional opportunities in the pipeline. Cash as of 31 December
2022 was GBP4.4m which was in line with the Board's expectations.
The Board believes the Company will deliver strong revenue growth
in FY 2023 compared to FY 2022 revenues of GBP2.8m. Based on the
reduced headcount following the restructuring in 2022, the Board
anticipates that the Company's cash burn will reduce significantly,
with the objective of achieving cash flow breakeven during FY 2024.
The Board remains confident the Group has the financial resources
in place to deliver its strategic plan.
Chris Yates, CEO of Abingdon Health plc, commented:
"We have successfully transitioned our business to a CDMO model
focused on the lateral flow market. We are pleased with the
commercial traction we are seeing and believe this model will
provide a sustainable revenue platform. Our focus remains on
revenue growth and achieving cash flow breakeven, and we believe we
have the financial resources in place to achieve this."
Dr Chris Hand, Non-Executive Chairman of Abingdon Health plc,
said:
"Following the action taken by the Board in the wake of COVID-19
we have maintained the robust status of the business. We have
established a great team and a strong platform able to offer
lateral flow development and automated manufacturing services to an
expanding base of loyal and new customers. We look forward to the
next phase of growth for the business towards the achievement of a
cash flow positive position. On behalf of the Board of Abingdon
Health plc, I would like to thank our colleagues, customers and
shareholders for their continued support."
Enquiries
Abingdon Health plc www.abingdonhealth.com/investors/
Chris Yates, Chief Executive Officer Via Walbrook PR
Melanie Ross , Chief Financial Officer
Chris Hand, Non-Executive Chairman
Singer Capital Markets (Sole Broker and Tel: +44 (0)20 7496 3000
Nominated Adviser)
Peter Steel, Alex Bond (Corporate Finance)
Tom Salvesen (Corporate Broking)
Walbrook PR Limited Tel: +44 (0)20 7933 8780 or abingdon@walbrookpr.com
Paul McManus / Phillip Marriage Mob: +44 (0)7980 541 893 / +44 (0)7867
Alice Woodings 984 082
+44 (0)7407 804 654
About Abingdon Health plc
Abingdon Health is a leading lateral flow contract development
and manufacturing organisation ("CDMO") offering its services to an
international customer base across industry sectors that include
clinical, animal health, plant health, and environmental testing.
Abingdon Health has the internal capabilities to take projects from
initial concept through to routine and large-scale manufacturing;
from "idea to commercial success."
The Company's CDMO division offers product development,
regulatory support, technology transfer and manufacturing services
for customers looking to develop new assays or transfer existing
laboratory-based assays to a lateral flow format. Abingdon Health
aims to support the increase in need for rapid results across many
industries and locations and produces lateral flow tests in areas
such as infectious disease, clinical testing including companion
diagnostics, animal health and environmental testing. Faster access
to results allows for rapid decision making, targeted intervention
and can support better outcomes.
Abingdon Health's Abingdon Simply Test range of self-tests is an
ecommerce platform that offers a range of self-tests to empowers
consumers to manage their own health and wellbeing. The Abingdon
Simply Test ecommerce site offers consumers a range of information
to support them in making informed decisions on the tests
available. In addition, the site provides Abingdon's contract
services customers with a potential route to market for self-tests.
The Abingdon Simply Test range is also sold through international
distributors and through other channels in the UK and Ireland such
as pharmacy chains.
Founded in 2008, Abingdon Health is headquartered in York,
England.
For more information visit: www.abingdonhealth.com
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of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
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